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06-24-2019 Council Packet
EXPANDED AGENDA CITY COUNCIL AGENDA Monday, June 24, 2019 *********** 6:30 p.m. (Broadcast live: http://northmetrotv.com/local- meetings/lino-lakes/) City Council: Mayor Reinert, Councilmembers Maher, Manthey, Rafferty and Stoesz City Administrator: Jeff Karlson COUNCIL WORK SESSION, 6:00 P.M. Community Room (not televised) 1. Review Regular Agenda CITY COUNCIL MEETING, 6:30 P.M. Roll Call - Council Members Rafferty, Stoesz, Manthey, Maher, and Mayor Reinert were present Pledge of Allegiance Open Mike / Public Comment - none Setting the Agenda: Addition or deletion of agenda items The agenda was amended to add Item 1D (that had been deleted by staff) 1. CONSENT AGENDA A) Consideration of Expenditures: i) June 24, 2019 Check No. 110392 through 110512 in the Amount of $1,636,095.71 B) Consider Approval of June 3, 2019 Work Session Minutes C) Consider Approval of June 10, 2019 Council Minutes D) Consider Approval of Resolution 19-72, Approving an Application for Temporary On-Sale Intoxicating/3.2 Malt Beverage for the 9th Annual Family Corn Roast E) Consider Approval of Resolution 19-73, Approving a Peddler License for Clearway Community Solar F) Consider Approval of Resolution 19-74, Approving Enterprise and Individual Massage License Renewals G) Consider Resolution No. 19-78, Approving an Application for an Exemption for Gambling Permit for Chain of Lakes Rotary for the 9th Annual Family Corn Roast H) Consider Approval of June 10, 2019 Council Minutes Closed Session Council Agenda -2- June 24, 2019 I) Consider Approval of Resolution 19-79, Approving a Special Event Permit for Hammerheart Brewing Action Taken: Motion by Maher, seconded by Rafferty, to approve Consent Agenda Items 1A through 1H as presented was adopted 2. FINANCE DEPARTMENT REPORT No Report 3. ADMINISTRATION DEPARTMENT REPORT No Report 4. PUBLIC SAFETY DEPARTMENT REPORT No Report 5. PUBLIC SERVICES DEPARTMENT REPORT No Report 6. COMMUNITY DEVELOPMENT REPORT A) Consider Resolution No. 19-77, Approving 1st Amendment to CDBG/HOME Cooperation Agreement with Anoka County, Michael Grochala Action Taken: Motion by Rafferty, seconded by Maher, to approve Resolution No. 19-77 as presented, was adopted B) Public Hearing: Consider First Reading of Ordinance No. 08-19, Vacating Right-of- Way, Drainage, and Utility Easement, Saddle Club 4th Addition, Diane Hankee Action Taken: Motion by Manthey, seconded by Stoesz, to approve the 1st Reading of Ordinance No. 08-19 as presented, was adopted C) Consider Resolution No. 19-81, Approving Land Acquisition from Estate of Margaret Carpenter (7685 Lake Drive), Michael Grochala Action Taken: Motion by Manthey, seconded by Stoesz, to approve Resolution No. 19-81 as presented, was adopted D) Consider Resolution No. 19-80, Approving Change Order No. 1, 2019 Mill and Overlay Project, Diane Hankee Action Taken: Motion by Manthey, seconded by Stoesz, to approve Resolution No. 19-80 as presented, was adopted; Rafferty abstained 7. UNFINISHED BUSINESS None 8. NEW BUSINESS None Council Agenda -3- June 24, 2019 Adjournment Motion to adjourn at 6:50 p.m. by Manthey, seconded by Stoesz, was adopted Following adjournment of the regular meeting, the council will reconvene for a special session to discuss the Lyngblomsten Financial Assistance Request Community Calendar – A Look Ahead June 24, 2019 through July 8, 2019 Monday, July 1 6:00 pm, Community Room Council Work Session Monday, July 8 6:30 pm, Council Chambers Council Meeting CITY COUNCIL AGENDA Monday, June 24, 2019 *********** 6:30 p.m. (Broadcast live: http://northmetrotv.com/local- meetings/lino-lakes/) City Council: Mayor Reinert, Councilmembers Maher, Manthey, Rafferty and Stoesz City Administrator: Jeff Karlson COUNCIL WORK SESSION, 6:00 P.M. Community Room (not televised) 1. Review Regular Agenda CITY COUNCIL MEETING, 6:30 P.M. Call to Order and Roll Call Pledge of Allegiance Open Mike / Public Comment Setting the Agenda: Addition or Deletion of Agenda Items 1. CONSENT AGENDA A) Consideration of Expenditures: i) June 24, 2019 Check No. 110392 through 110512 in the Amount of $1,636,095.71 B) Consider Approval of June 3, 2019 Work Session Minutes C) Consider Approval of June 10, 2019 Council Minutes D) Consider Approval of Resolution 19-72, Approving an Application for Temporary On-Sale Intoxicating/3.2 Malt Beverage for the 9th Annual Family Corn Roast E) Consider Approval of Resolution 19-73, Approving a Peddler License for Clearway Community Solar F) Consider Approval of Resolution 19-74, Approving Enterprise and Individual Massage License Renewals G) Consider Resolution No. 19-78, Approving an Application for an Exemption for Gambling Permit for Chain of Lakes Rotary for the 9th Annual Family Corn Roast H) Consider Approval of June 10, 2019 Council Minutes Closed Session I) Consider Approval of Resolution 19-79, Approving a Special Event Permit for Hammerheart Brewing Council Agenda -2- June 24, 2019 2. FINANCE DEPARTMENT REPORT No Report 3. ADMINISTRATION DEPARTMENT REPORT No Report 4. PUBLIC SAFETY DEPARTMENT REPORT No Report 5. PUBLIC SERVICES DEPARTMENT REPORT No Report 6. COMMUNITY DEVELOPMENT REPORT A) Consider Resolution No. 19-77, Approving 1st Amendment to CDBG/HOME Cooperation Agreement with Anoka County, Michael Grochala B) Public Hearing: Consider First Reading of Ordinance No. 08-19, Vacating Right-of- Way, Drainage, and Utility Easement, Saddle Club 4th Addition, Diane Hankee C) Consider Resolution No. 19-81, Approving Land Acquisition from Estate of Margaret Carpenter (7685 Lake Drive), Michael Grochala D) Consider Resolution No. 19-80, Approving Change Order No. 1, 2019 Mill and Overlay Project, Diane Hankee 7. UNFINISHED BUSINESS None 8. NEW BUSINESS None Adjournment Following adjournment of the regular meeting, the council will reconvene for a special session to discuss the Lyngblomsten Financial Assistance Request Community Calendar – A Look Ahead June 24, 2019 through July 8, 2019 Monday, July 1 6:00 pm, Community Room Council Work Session Monday, July 8 6:30 pm, Council Chambers Council Meeting Expenditures June 24, 2019 Check #110392 to #110512 $1,636,095.71 City of Lino Lakes Activity Codes Code Description Code Description 401 Mayor/Council 817 Spring Fling 402 Administration 818 Winter Festival 403 Elections 819 Community Gardens 404 Cable TV 822 Family Corn Roast 405 Charter Administration 827 Gobbler Games 407 Finance 830 Adult Golf Lessons 414 Legal Consultants 835 Youth Skating Class 415 Economic Development 850 Golf Academy 416 Planning & Zoning 856 Youth Soccer 417 Engineering 857 Soccer Fundamentals 418 Community Development 860 Secret Shop 420 Police Protection 864 Preschool Playtime 421 Fire Protection 868 Little Goblins Party 422 Building Inspections 871 Flag Football 430 Streets 875 Snow Day 431 Fleet Management 876 Kite Day 432 Government Buildings 877 Rockin' in the Park 450 Parks 879 Movies in the Park 451 Recreation 890 Senior Programs 461 Environmental 462 Solid Waste Abatement 463 Forestry 494 Water 495 Sanitary Sewer 499 Other 802 Dodgeball Camp 806 Youth T-Ball 808 Youth Baseball Camp 810 Youth Playground 811 Youth Safety Camp 812 Youth Art Camps 814 Senior Programs/Book Club AP Checks by Account Number 06/24/2019 City Council Meeting Vendor Fund/Dept Account Amount Check # Description AFLAC 101-000 101-000-2040-000 167.80 110400 Insurance Premiums AFSCME Council #5 101-000 101-000-2040-000 551.32 110394 PR Batch 00002.06.2019 Union Dues AFSCME International Union 101-000 101-000-2040-000 560.00 110395 PR Batch 00002.06.2019 Union Dues 49ers Law Enforcement Labor Services 101-000 101-000-2040-000 1,224.00 110396 PR Batch 00002.06.2019 Union Dues LELS Anoka County Property Records & Taxation 101-000 101-000-2081-000 46.00 110404 Easement Encroachment 2052 Cypress Street Anoka County Property Records & Taxation 101-000 101-000-2081-000 46.00 110404 Easement Encroachment 6396 Painted Turtle Road Anoka County Property Records & Taxation 101-000 101-000-2081-000 46.00 110404 Easement Encroachment 1955 Rosewood Street Anoka County Property Records & Taxation 101-000 101-000-2081-000 46.00 110404 Easement Encroachment 488 Post Road Anoka County Property Records & Taxation 101-000 101-000-2081-000 46.00 110404 Easement Encroachment 564 Myrtle Lane Anoka County Property Records & Taxation 101-000 101-000-2081-000 46.00 110404 Easement Encroachment 425 Post Road Anoka County Property Records & Taxation 101-000 101-000-2081-000 46.00 110404 Easement Encroachment 443 Post Road Anoka County Property Records & Taxation 101-000 101-000-2081-000 46.00 110404 Easement Encroachment 428 Post Road Met Council Environmental Services (SAC) 101-000 101-000-2120-000 29,820.00 110464 May 2019 SAC Met Council Environmental Services (SAC) 101-000 101-000-3414-000 -298.20 110464 May 2019 SAC Cross Nurseries Inc. 101-000 101-000-3631-000 3,624.05 110425 Trees Sold at the Lino Lakes City Tree Sale U.S. Bank Visa 101-000 101-000-3730-000 454.92 110508 All Seasons Rental/Concrete Reimbursed by Northland Recreation U.S. Bank Visa 101-000 101-000-3730-000 -1,146.25 110508 U.S. Bank Rebate U.S. Bank Visa 101-000 101-000-3730-000 211.26 110508 All Seasons Rental/Concrete Reimbursed by Northland Recreation 101-000 Total 35,536.90 U.S. Bank Visa 101-401 101-401-4410-000 50.00 110508 Target/Gift Cards for Website Photo Contest Winners U.S. Bank Visa 101-401 101-401-4900-000 99.63 110508 Addie Lane Floral/Funeral Flowers L. Hawkinson Family U.S. Bank Visa 101-401 101-401-4900-000 213.94 110508 Angus Meats/Food for Employee Appreciation Party U.S. Bank Visa 101-401 101-401-4900-000 23.13 110508 Target/Food for Employee Appreciation Party U.S. Bank Visa 101-401 101-401-4900-000 129.27 110508 Walmart/Food for Employee Appreciation Party U.S. Bank Visa 101-401 101-401-4900-000 130.00 110508 Chomonix/Banquet Room Rental Employee Appreciation Party U.S. Bank Visa 101-401 101-401-4900-000 100.00 110508 Centerville Floral/Funeral Flowers D. Jensen Family U.S. Bank Visa 101-401 101-401-4900-000 99.51 110508 Costco/Food for Employee Appreciation Party U.S. Bank Visa 101-401 101-401-4900-000 6.43 110508 Cub/Supplies for Employee Appreciation Party U.S. Bank Visa 101-401 101-401-4900-000 25.98 110508 Target/Food for Employee Appreciation Party 101-401 Total 877.89 First Advantage Occ. 101-402 101-402-4300-000 33.52 110435 Annual Enrollment Public Works Occupational Health Centers of MN P.C. 101-402 101-402-4300-000 61.00 110476 Pre-employment Screen New Hire CSO U.S. Bank Visa 101-402 101-402-4330-000 25.00 110508 Roseville Area Optimist Club/May Club Meeting American Legal Publishing Corp 101-402 101-402-4410-000 375.00 110401 Lino Lakes MN Code of Ordinances Internet Renewal Business Data Record Services 101-402 101-402-4410-000 20.10 110413 Document Destruction TASC - Client Invoices 101-402 101-402-4410-000 91.14 110502 May Admin Fees U.S. Bank Visa 101-402 101-402-4452-000 46.00 110508 MCFOA/Dues J. Bartell U.S. Bank Visa 101-402 101-402-4452-000 46.00 110508 MCFOA/Dues L. Hogstad-Osterhues 101-402 Total 697.76 Redpath and Company 101-407 101-407-4308-000 11,600.00 110493 Audit Progress Billing City of Roseville 101-407 101-407-4310-000 11,657.00 110419 June IT Services OPG-3 Inc. 101-407 101-407-4310-000 11,100.00 110480 Initial Billing Online Permitting Solution for PermitWorks Cotton Sarah 101-407 101-407-4330-000 2,000.00 110423 Spring Tuition Reimbursement Personnel Policy Section 7.1 U.S. Bank Visa 101-407 101-407-4330-000 1,185.52 110508 Millennium Biltmore/GFOA National Conference Lodging U.S. Bank Visa 101-407 101-407-4330-000 585.65 110508 Best Western/MN Clerks Institute Lodging T. Thoma Gov't Finance Officers Association 101-407 101-407-4452-000 225.00 110445 Membership Dues 101-407 Total 38,353.17 Rupp Anderson Squires & Waldspurger P.A. 101-414 101-414-4301-000 174.80 110495 April Legal GDO Law 101-414 101-414-4303-000 8,500.00 110440 Legal Prosecutor Contract GDO Law 101-414 101-414-4303-000 241.50 110440 Legal Forfeitures 101-414 Total 8,916.30 Rupp Anderson Squires & Waldspurger P.A. 101-415 101-415-4300-000 112.00 110495 April Legal 101-415 Total 112.00 WSB & Associates Inc. 101-417 101-417-4300-000 954.00 110511 April 2019 Private Utility Permits WSB & Associates Inc. 101-417 101-417-4300-000 1,392.25 110511 April 2019 Miscellaneous Escrow Account Review WSB & Associates Inc. 101-417 101-417-4300-000 1,450.25 110511 April 2019 MS4 Services WSB & Associates Inc. 101-417 101-417-4410-000 5,180.00 110511 April General Engineering Services 101-417 Total 8,976.50 Strand Mara 101-418 101-418-4330-000 12.00 110500 Parking for Science Museum Class U.S. Bank Visa 101-418 101-418-4330-000 288.00 110508 Science Museum of MN/InDesign Training 101-418 Total 300.00 Innovative Office Solutions LLC 101-420 101-420-4200-000 56.79 110451 Toner Tape Innovative Office Solutions LLC 101-420 101-420-4200-000 168.00 110451 Paper Sharpie Markers U.S. Bank Visa 101-420 101-420-4200-000 92.68 110508 Walgreens/Photos Page 1 AP Checks by Account Number 06/24/2019 City Council Meeting Vendor Fund/Dept Account Amount Check # Description U.S. Bank Visa 101-420 101-420-4200-000 27.08 110508 Vista Print/Business Cards U.S. Bank Visa 101-420 101-420-4200-000 62.50 110508 MN Chiefs of Police Association/Permit to Acquire Gun Forms U.S. Bank Visa 101-420 101-420-4211-000 88.00 110508 Axon/Taser X26 DPM Batteries U.S. Bank Visa 101-420 101-420-4213-000 61.71 110508 Pizza T/Lunch for Cops & Friends Mentoring Program U.S. Bank Visa 101-420 101-420-4214-000 78.18 110508 Subway/Night to Unite Supplies U.S. Bank Visa 101-420 101-420-4214-000 17.23 110508 Target/Night to Unite Community Meeting Supplies U.S. Bank Visa 101-420 101-420-4240-000 255.80 110508 Mount My Monitor/#301 Squad Computer Stand U.S. Bank Visa 101-420 101-420-4240-000 12.99 110508 Amazon/#393 Squad Power Cord for Printer U.S. Bank Visa 101-420 101-420-4321-000 1,490.34 110508 Verizon Wireless & WiFi U.S. Bank Visa 101-420 101-420-4321-000 -591.50 110508 Verizon Wireless U.S. Bank Visa 101-420 101-420-4322-000 15.80 110508 Circle Pines Post Office/ICR #18-260627 Certified Mail Hawkinson Lori 101-420 101-420-4330-000 20.00 110448 PLEAA Conference Meal Reimbursement MN Sex Crimes Investigators Association 101-420 101-420-4330-000 60.00 110471 Basic Sexual Assault Investigators Training M. Paulson North Memorial Health 101-420 101-420-4330-000 770.00 110474 EMR Refresher U.S. Bank Visa 101-420 101-420-4330-000 75.00 110508 BCA/DMT-G Recertification D. Thill U.S. Bank Visa 101-420 101-420-4330-000 28.16 110508 Eventbrite/Step Up & Lead Training M. Rumpsa U.S. Bank Visa 101-420 101-420-4330-000 117.00 110508 Cragun's/Lodging PLEAA Conference L. Hawkinson Remaining Balance Aspen Mills Inc. 101-420 101-420-4370-000 68.95 110406 Uniform Allowance N. Hamann Aspen Mills Inc. 101-420 101-420-4370-000 28.20 110406 Uniform Allowance T. Vang Aspen Mills Inc. 101-420 101-420-4370-000 12.00 110406 Uniform Allowance V. Klosner Aspen Mills Inc. 101-420 101-420-4370-000 114.05 110406 Uniform Allowance K. Mobraten Aspen Mills Inc. 101-420 101-420-4370-000 34.95 110406 Uniform Allowance K. Kraemer Aspen Mills Inc. 101-420 101-420-4370-000 189.00 110406 Uniform Allowance N. Hamann Aspen Mills Inc. 101-420 101-420-4370-000 849.00 110406 Body Armor N. Hamann U.S. Bank Visa 101-420 101-420-4370-000 69.85 110508 Aspen Mills/Uniform Allowance J. Swenson U.S. Bank Visa 101-420 101-420-4370-000 192.94 110508 Galls/Uniform Allowance W. Owens Connexus Energy 101-420 101-420-4381-000 30.35 110421 Electric U.S. Bank Visa 101-420 101-420-4386-000 64.67 110508 Cub/Supplies for Reserve Gathering Business Data Record Services 101-420 101-420-4410-000 60.30 110413 Document Destruction Metro Sales Incorporated 101-420 101-420-4410-000 53.67 110465 Copier Maintenance Contract Ricoh MP 4001SP Otter Lake Animal Care Center 101-420 101-420-4410-000 133.00 110482 Boarding & Impound Pace Systems Inc. 101-420 101-420-4410-000 2,400.00 110483 Pace Scheduler Annual Software Subscription 101-420 Total 7,206.69 Menards - Forest Lake 101-421 101-421-4211-000 19.92 110462 White Marking Paint Tough Box U.S. Bank Visa 101-421 101-421-4211-000 9.00 110508 Amazon/Blood Glucose Test Strips U.S. Bank Visa 101-421 101-421-4211-000 27.98 110508 Amazon/3M Dual Lock Fastener Menards - Forest Lake 101-421 101-421-4240-000 7.96 110462 #E11 & #E21 Overhaul Equipment Menards - Forest Lake 101-421 101-421-4240-000 285.12 110462 #E11 & #E21 Overhaul Equipment U.S. Bank Visa 101-421 101-421-4240-000 13.99 110508 Amazon/3 Port HDMI Switch U.S. Bank Visa 101-421 101-421-4240-000 42.00 110508 Fire Safety/Akron Replacement Kit U.S. Bank Visa 101-421 101-421-4240-000 79.90 110508 Amazon/Magnetic Mic U.S. Bank Visa 101-421 101-421-4300-000 199.00 110508 EmployTest/Pre-employment Testing U.S. Bank Visa 101-421 101-421-4321-000 135.06 110508 Verizon Wireless & WiFi U.S. Bank Visa 101-421 101-421-4321-000 -5.63 110508 Verizon Wireless North Memorial Health 101-421 101-421-4330-000 490.00 110474 EMR Refresher U.S. Bank Visa 101-421 101-421-4340-000 521.06 110508 Fast Signs/Fire Sign American Test Center 101-421 101-421-4410-000 1,889.00 110402 #621 & #611 annual Safety Inspection 101-421 Total 3,714.36 U.S. Bank Visa 101-422 101-422-4240-000 54.36 110508 Amazon/Mirrors for Inspections U.S. Bank Visa 101-422 101-422-4321-000 -56.29 110508 Verizon Wireless U.S. Bank Visa 101-422 101-422-4321-000 175.42 110508 Verizon Wireless & WiFi 101-422 Total 173.49 Dixon Jacob 101-430 101-430-4211-000 74.98 110428 Reimbursement for Plow Damage to Hydrangeas Menards - Forest Lake 101-430 101-430-4211-000 47.98 110462 Mailbox Repair Supplies Safe-Fast Inc. 101-430 101-430-4211-000 108.00 110496 Safety Glasses U.S. Bank Visa 101-430 101-430-4211-000 58.49 110508 A.M. Leonard/Lute Rakes Earl F. Andersen 101-430 101-430-4223-000 158.15 110432 Logo Street Signs Menards - Forest Lake 101-430 101-430-4223-000 209.32 110462 Material for Fire Recruitment Signs T.A. Schifsky and Sons Inc. 101-430 101-430-4224-000 107.21 110501 AC Sand Mix Plaisted Companies Inc. 101-430 101-430-4229-000 864.35 110489 Class 5 Gravel U.S. Bank Visa 101-430 101-430-4321-000 51.00 110508 Verizon Wireless U.S. Bank Visa 101-430 101-430-4321-000 50.89 110508 Verizon Wireless U.S. Bank Visa 101-430 101-430-4321-000 50.89 110508 Verizon Wireless Connexus Energy 101-430 101-430-4385-000 1,386.91 110421 Electric Page 2 AP Checks by Account Number 06/24/2019 City Council Meeting Vendor Fund/Dept Account Amount Check # Description Anoka County Treasury Office 101-430 101-430-4410-000 308.54 110405 1st Quarter Signal Maintenance Century Fence Company Inc. 101-430 101-430-4410-000 3,750.00 110418 Striping on Robinson Drive Olson's Sewer Service Inc. 101-430 101-430-4410-000 6,202.15 110478 Excavation Work 6433 20th Avenue Cartegraph Systems Inc. 101-430 101-430-4452-000 6,000.00 110414 Cartegraph Subscription 101-430 Total 19,428.86 Gillund Enterprises Inc. 101-431 101-431-4211-000 166.10 110443 Carburetor & Brake Parts Cleaner U.S. Bank Visa 101-431 101-431-4211-000 65.93 110508 Fleet Farm/Fluid Film Lubricant Dry Film Lubricant Mansfield Oil Company 101-431 101-431-4212-000 2,881.78 110461 1 100 Dyed B20 ULS #2 Clean 365 Mansfield Oil Company 101-431 101-431-4212-000 4,474.08 110461 1 800 Conv 87 Oct E-10 U.S. Bank Visa 101-431 101-431-4212-000 38.63 110508 Casey's/Fuel #309 U.S. Bank Visa 101-431 101-431-4212-000 17.03 110508 Bill's/Non-Oxy Fuel U.S. Bank Visa 101-431 101-431-4212-000 25.91 110508 Bill's/Non-Oxy Fuel UTV #312 U.S. Bank Visa 101-431 101-431-4212-000 17.77 110508 Bill's/Non-Oxy Fuel U.S. Bank Visa 101-431 101-431-4212-000 48.12 110508 Bill's/Non-Oxy Fuel U.S. Bank Visa 101-431 101-431-4212-000 18.07 110508 One Stop/Diesel for Toolcat U.S. Bank Visa 101-431 101-431-4212-000 26.00 110508 Bill's/Non-Oxy Fuel UTV #312 Auto Nation Ford White Bear Lake 101-431 101-431-4221-000 10.37 110407 #386 Gasket Auto Nation Ford White Bear Lake 101-431 101-431-4221-000 33.10 110407 #502 Switch Assembly Bluetarp Financial Inc. 101-431 101-431-4221-000 163.96 110408 #506 Trailer Hitch Como Lube & Supplies Inc. 101-431 101-431-4221-000 59.45 110420 Stock OW20 Engine Oil Factory Motor Parts Company 101-431 101-431-4221-000 -30.00 110434 Battery Core Return Credit Factory Motor Parts Company 101-431 101-431-4221-000 23.15 110434 #301 Air Conditioner Switch Factory Motor Parts Company 101-431 101-431-4221-000 47.50 110434 #386 Spark Plugs Valve Assembly Frontier Ag & Turf 101-431 101-431-4221-000 20.98 110439 #144 Rotary Switch Hugo Equipment Company 101-431 101-431-4221-000 23.98 110449 #504 Oil Filter Hydraulics Plus & Consulting 101-431 101-431-4221-000 52.54 110450 #230 Hose Lano Equipment 101-431 101-431-4221-000 682.09 110459 BPA Controller for Bobcat Snow Blower Attachment Midway Ford Company 101-431 101-431-4221-000 225.13 110468 #301 Condenser O'Reilly Automotive Stores 101-431 101-431-4221-000 27.98 110481 Stock Shot Dye O'Reilly Automotive Stores 101-431 101-431-4221-000 16.29 110481 Stock Oil & Air Filters O'Reilly Automotive Stores 101-431 101-431-4221-000 11.16 110481 Stock Mini Bulbs O'Reilly Automotive Stores 101-431 101-431-4221-000 28.98 110481 Stock Nitrile Gloves O'Reilly Automotive Stores 101-431 101-431-4221-000 89.40 110481 Stock Oil & Fuel Filters O'Reilly Automotive Stores 101-431 101-431-4221-000 8.18 110481 Stock Air Filter O'Reilly Automotive Stores 101-431 101-431-4221-000 48.81 110481 Stock Oil & Fuel Filters Silver Star Industries 101-431 101-431-4221-000 -81.95 110499 Return Floor Liners U.S. Bank Visa 101-431 101-431-4221-000 35.72 110508 Amazon/Vacuum Pump Oil for Air Conditioning Vacuum Pump U.S. Bank Visa 101-431 101-431-4221-000 46.31 110508 Amazon/1" Diesel Swivel for Diesel Pumps Ziegler Inc. 101-431 101-431-4221-000 48.50 110512 #251 Coupling Seal O-Ring Hose U.S. Bank Visa 101-431 101-431-4240-000 383.96 110508 Amazon/Air Conditioning Manifold Gauges Hoses Temp Sensor U.S. Bank Visa 101-431 101-431-4240-000 199.95 110508 Amazon/Micron Vacuum Gauge for Finding Air Conditioning Leaks U.S. Bank Visa 101-431 101-431-4240-000 337.44 110508 Zoro/Vacuum Pump for Repairing Vehicle Air Conditioning U.S. Bank Visa 101-431 101-431-4240-000 21.57 110508 Amazon/Coupler for Air Conditioning Vacuum Pump Auto Nation Ford White Bear Lake 101-431 101-431-4300-000 1,970.98 110407 #383 Cooling System Repairs Auto Nation Ford White Bear Lake 101-431 101-431-4300-000 818.63 110407 #395 Installed Y-Pipe with Gaskets Auto Nation Ford White Bear Lake 101-431 101-431-4300-000 1,449.08 110407 #388 Power Steering Repairs DVS Renewal 101-431 101-431-4300-000 11.00 110430 #306 Squad Vehicle Tabs DVS Renewal 101-431 101-431-4300-000 11.00 110431 #307 Squad Vehicle Tabs Pomp's Tire Service Inc. 101-431 101-431-4300-000 53.00 110490 #200 Flat Tire Repair Truck Utilities Inc. 101-431 101-431-4300-000 1,938.67 110506 #525 Replace Boom Relief Valve Twin Cities Transport & Recovery 101-431 101-431-4300-000 145.00 110507 #383 Tow to Dealership for Repair U.S. Bank Visa 101-431 101-431-4300-000 272.50 110508 Twin City Powder Coating/#617 & #600 Front Push Bumpers Cartegraph Systems Inc. 101-431 101-431-4452-000 2,000.00 110414 Cartegraph Subscription 101-431 Total 18,983.83 Innovative Office Solutions LLC 101-432 101-432-4200-000 217.37 110451 Labels Clorox Wipes Batteries Clasp Envelopes Pens U.S. Bank Visa 101-432 101-432-4200-000 -8.99 110508 Amazon/Return Self Inking Rubber Stamp U.S. Bank Visa 101-432 101-432-4211-500 15.80 110508 Uline/Belt for Vacuum U.S. Bank Visa 101-432 101-432-4211-501 12.47 110508 Home Depot/Supplies to Hang Water Line Fire Station #1 Winnick Supply Inc. 101-432 101-432-4211-501 238.73 110509 Woodford Commercial 3/4x12" Silcock Woodford Coin Key Short Dalco Inc. 101-432 101-432-4211-503 171.65 110426 Multi-Fold Towels Tissue U.S. Bank Visa 101-432 101-432-4211-503 13.78 110508 Home Depot/Chair Casters U.S. Bank Visa 101-432 101-432-4211-503 109.00 110508 Home Depot/Garbage Disposal U.S. Bank Visa 101-432 101-432-4211-503 24.36 110508 Amazon/Garage Door Receiver Menards - Forest Lake 101-432 101-432-4240-503 66.94 110462 Clamp Meter Page 3 AP Checks by Account Number 06/24/2019 City Council Meeting Vendor Fund/Dept Account Amount Check # Description Oertel Architects 101-432 101-432-4300-000 1,500.00 110477 Public Works Expansion Study U.S. Bank Visa 101-432 101-432-4300-503 956.00 110508 Aker Doors/PD Garage Door Opener Installed Stall #1 City of Roseville 101-432 101-432-4321-000 1,501.00 110419 June Phone Services TDS Metrocom MN 101-432 101-432-4321-000 249.68 110503 Phone Service Comcast 101-432 101-432-4321-502 312.65 110392 June Phone & Internet NeoFunds by Neopost 101-432 101-432-4322-000 500.00 110473 Postage Machine Postage NeoFunds by Neopost 101-432 101-432-4322-000 500.00 110473 Postage Machine Postage Palmer West Construction 101-432 101-432-4361-000 112,612.05 110484 Civic Complex Roof Connexus Energy 101-432 101-432-4381-500 850.36 110421 Electric CenterPoint Energy 101-432 101-432-4383-500 38.77 110417 Natural Gas-1189 Main Street CenterPoint Energy 101-432 101-432-4383-500 54.95 110417 Natural Gas-1189 Main Street CenterPoint Energy 101-432 101-432-4383-500 68.96 110417 Natural Gas-1187 Main Street CenterPoint Energy 101-432 101-432-4383-501 196.85 110417 Natural Gas-7741 Lake Drive CenterPoint Energy 101-432 101-432-4383-502 315.58 110417 Natural Gas-1710 Birch Street Centennial Utilities 101-432 101-432-4383-503 874.30 110415 Natural Gas-600 Town Center Pkwy Ace Solid Waste Inc. 101-432 101-432-4384-500 53.00 110399 Commingle Recycling 1189 Main Street Ace Solid Waste Inc. 101-432 101-432-4384-500 318.80 110399 Trash & Recycling - 1189 Main Street Ace Solid Waste Inc. 101-432 101-432-4384-501 70.90 110399 Trash & Recycling - 7741 Lake Drive Ace Solid Waste Inc. 101-432 101-432-4384-502 131.91 110399 Trash & Recycling - 1710 Birch Street Ace Solid Waste Inc. 101-432 101-432-4384-503 386.45 110399 Trash & Recycling - 640 Town Center Pkwy Republic Services #894 101-432 101-432-4384-503 101.82 110494 June Organic Recycling City Hall Coverall of the Twin Cities 101-432 101-432-4410-500 749.00 110424 June Commercial Cleaning Service Metro Sales Incorporated 101-432 101-432-4410-500 90.11 110465 Copier Maintenance Contract Ricoh MP C306SPF Premium Waters Inc. 101-432 101-432-4410-500 46.89 110491 Kandiyohi Water Coverall of the Twin Cities 101-432 101-432-4410-501 280.00 110424 June Commercial Cleaning Service AmeriPride Services Inc. 101-432 101-432-4410-502 144.83 110403 Mats Coverall of the Twin Cities 101-432 101-432-4410-502 362.00 110424 June Commercial Cleaning Service Coverall of the Twin Cities 101-432 101-432-4410-503 1,094.00 110424 June Commercial Cleaning Service Coverall of the Twin Cities 101-432 101-432-4410-503 575.00 110424 Special Commercial Cleaning Service - Bathroom Scrubbing Coverall of the Twin Cities 101-432 101-432-4410-503 2,292.00 110424 June Commercial Cleaning Service Metro Sales Incorporated 101-432 101-432-4410-503 551.31 110465 Copier Maintenance Contract Ricoh MP 6002SP & MP C3504 U.S. Bank Visa 101-432 101-432-4410-503 1,056.00 110508 Aker Doors/Replace Opener & Maintenance on Overhead PD Doors 101-432 Total 129,696.28 Brock White Company LLC 101-450 101-450-4211-000 258.67 110410 Sunrise Park GeoTex Roll Cross Nurseries Inc. 101-450 101-450-4211-000 -97.00 110425 2018 Volume Discount on Current Invoice Cross Nurseries Inc. 101-450 101-450-4211-000 462.05 110425 Grass Container Frattallone's/Circle Pines Ace 101-450 101-450-4211-000 2.87 110437 Fasteners Frontier Ag & Turf 101-450 101-450-4211-000 129.60 110439 Blades Gerten Greenhouses & Garden Center Inc. 101-450 101-450-4211-000 575.00 110442 Game Time Infield Chalk Tessman Company 101-450 101-450-4211-000 1,208.00 110504 80% Exn #615-7170 U.S. Bank Visa 101-450 101-450-4211-000 518.95 110508 Dog Waste Depot/Dog Waste Roll Bags Can Liners U.S. Bank Visa 101-450 101-450-4211-000 37.97 110508 Home Depot/Stain for Trash Receptacles U.S. Bank Visa 101-450 101-450-4211-000 271.44 110508 Beacon Athletics/Base Anchors U.S. Bank Visa 101-450 101-450-4211-000 36.50 110508 Home Depot/Cypress Mulch Wipers & Wipes Inc. 101-450 101-450-4211-000 342.96 110510 Can Liners L.T.G. Power Equipment 101-450 101-450-4240-000 161.73 110457 Battery Belt with Harness Cartegraph Systems Inc. 101-450 101-450-4300-000 1,000.00 110414 Cartegraph Subscription U.S. Bank Visa 101-450 101-450-4321-000 50.89 110508 Verizon Wireless U.S. Bank Visa 101-450 101-450-4321-000 51.00 110508 Verizon Wireless U.S. Bank Visa 101-450 101-450-4321-000 50.89 110508 Verizon Wireless DeGardner Richard 101-450 101-450-4330-000 64.96 110427 Mileage Connexus Energy 101-450 101-450-4381-000 65.90 110421 Electric Centennial Utilities 101-450 101-450-4383-000 48.68 110415 Natural Gas-7204 Lake Drive Centennial Utilities 101-450 101-450-4383-000 25.61 110415 Natural Gas-6811 Lake Drive Centennial Utilities 101-450 101-450-4383-000 28.36 110415 Natural Gas-6918 Sunrise CenterPoint Energy 101-450 101-450-4383-000 47.52 110417 Natural Gas-6520 Pheasant Run CenterPoint Energy 101-450 101-450-4383-000 18.97 110417 Natural Gas-1179 Main Street Ace Solid Waste Inc. 101-450 101-450-4384-000 243.61 110399 Trash & Recycling - Sunrise Park Ace Solid Waste Inc. 101-450 101-450-4384-000 552.32 110399 Demo Dumpster Sunrise Park 6918 Sunrise Drive Jimmy's Johnnys 101-450 101-450-4410-000 60.00 110453 Toilet Rental Birch Park Jimmy's Johnnys 101-450 101-450-4410-000 60.00 110453 Toilet Rental Lino Park Jimmy's Johnnys 101-450 101-450-4410-000 180.00 110453 Toilet Rental Sunrise Park Jimmy's Johnnys 101-450 101-450-4410-000 60.00 110453 Toilet Rental City Hall Park Jimmy's Johnnys 101-450 101-450-4410-000 60.00 110453 Toilet Rental Marshan Park Page 4 AP Checks by Account Number 06/24/2019 City Council Meeting Vendor Fund/Dept Account Amount Check # Description Jimmy's Johnnys 101-450 101-450-4410-000 60.00 110453 Toilet Rental Clearwater Creek Philip's Tree Care 101-450 101-450-4410-000 655.82 110488 Fertilizer & Weed Control 101-450 Total 7,293.27 U.S. Bank Visa 101-451 101-451-5000-000 3,540.36 110508 Ohenry Productions/20x40 White Tent 101-451 Total 3,540.36 U.S. Bank Visa 101-461 101-461-4321-000 47.40 110508 Verizon Wireless & WiFi U.S. Bank Visa 101-461 101-461-4321-000 -42.73 110508 Verizon Wireless 101-461 Total 4.67 U.S. Bank Visa 101-462 101-462-4200-000 42.93 110508 Target/Recycle Day Bagels Donuts Rain Ponchos U.S. Bank Visa 101-462 101-462-4200-000 26.00 110508 Target/Supplies for Recycle Day U.S. Bank Visa 101-462 101-462-4200-000 264.17 110508 KFC/Lunch for Recycle Day Workers & Volunteers U.S. Bank Visa 101-462 101-462-4200-000 -25.95 110508 Target/Recycle Day Return Rain Ponchos 1st Choice Document Destruction 101-462 101-462-4410-000 600.00 110397 Shred Day Event 6/15/2019 1 340 Pounds Ace Solid Waste Inc. 101-462 101-462-4410-000 164.56 110399 Organic Recycling - Birch Park Ace Solid Waste Inc. 101-462 101-462-4410-000 79.87 110399 Organic Recycling - Clearwater Creek Ace Solid Waste Inc. 101-462 101-462-4410-000 204.53 110399 Organic Recycling - Marshan Park Bro-Tex Co. Inc. 101-462 101-462-4410-000 450.00 110411 Recycle Day Carpet Recycling Business Data Record Services 101-462 101-462-4410-000 320.00 110413 Document Destruction Freimuth Enterprises LLC 101-462 101-462-4410-000 3,925.00 110438 May Recycling Freimuth Enterprises LLC 101-462 101-462-4410-000 375.00 110438 April Recycling 101-462 Total 6,426.11 Gerten Greenhouses & Garden Center Inc. 101-463 101-463-4211-000 310.66 110442 Azasol Drill Bits Arbor Plugs 101-463 Total 310.66 U.S. Bank Visa 201-000 201-000-3810-000 1.00 110508 City of Lino Lakes/Square Test Parks & Rec Account Nadeau Abigal 201-000 201-000-3810-806 40.00 110472 Refund T-Ball 201-000 Total 41.00 MN Gambling Control Board 201-203 201-203-4211-822 100.00 110470 Permit for Family Corn Roast Raffle Petty Cash - Brian Hronski 201-203 201-203-4211-822 800.00 110487 Corn Roast Petty Cash 201-203 Total 900.00 U.S. Bank Visa 201-205 201-205-4211-810 26.00 110508 Dollar Tree/Sponges Cotton Balls U.S. Bank Visa 201-205 201-205-4211-810 346.03 110508 Fun Express/Sport Ball Back Packs Tissue Paper Masks Markers U.S. Bank Visa 201-205 201-205-4211-810 27.96 110508 Amazon/Party Blowers U.S. Bank Visa 201-205 201-205-4211-810 36.26 110508 Target/Craft Sets U.S. Bank Visa 201-205 201-205-4211-810 207.96 110508 S&S Worldwide/Dodgeballs U.S. Bank Visa 201-205 201-205-4211-810 15.76 110508 Thrift Books/Books for Summer Playgrounds Burtman Lee Ann 201-205 201-205-4211-814 165.00 110412 Book Club Books Purchased Through Author U.S. Bank Visa 201-205 201-205-4211-814 21.90 110508 Walmart/Senior Author Talk Book Club Petty Cash - Brian Hronski 201-205 201-205-4211-877 500.00 110486 Rockin' in the Park Petty Cash U.S. Bank Visa 201-205 201-205-4211-877 177.50 110508 Image Printing/Rockin' in the Park Banners U.S. Bank Visa 201-205 201-205-4211-890 690.00 110508 MN Twins/Senior Field Trip Tickets 201-205 Total 2,214.37 U.S. Bank Visa 201-207 201-207-4211-806 607.75 110508 Taho Sports/T-Ball Shirts 201-207 Total 607.75 Petty Cash - Brian Hronski 205-497 205-497-4211-000 800.00 110485 Blue Heron Days Petty Cash 205-497 Total 800.00 U.S. Bank Visa 208-420 208-420-4211-000 139.21 110508 Perfect 10 Detailing/#311 Cleaning Forfeited Vehicle U.S. Bank Visa 208-420 208-420-5000-000 150.00 110508 Sun Control/#311 Window Tint for Investigations Jeep 208-420 Total 289.21 U.S. Bank Visa 211-420 211-420-4211-000 123.98 110508 Royal Canin/K9 Food Justice U.S. Bank Visa 211-420 211-420-4211-000 123.98 110508 Royal Canin/K9 Food Argos U.S. Bank Visa 211-420 211-420-4240-000 84.56 110508 Menards/K9 Equipment Hardware U.S. Bank Visa 211-420 211-420-4240-000 6.93 110508 Home Depot/Screws for K9 Equipment U.S. Bank Visa 211-420 211-420-4240-000 43.96 110508 Home Depot/Screws for K9 Equipment U.S. Bank Visa 211-420 211-420-4240-000 1,549.50 110508 Midwest Fence/K9 Kennel Argos U.S. Bank Visa 211-420 211-420-4240-000 309.19 110508 Menards/K9 Equipment Hardware & Paint 211-420 Total 2,242.10 Redpath and Company 301-499 301-499-4308-000 290.00 110493 Audit Progress Billing 301-499 Total 290.00 U.S. Bank Visa 401-432 401-432-5000-000 669.98 110508 Restaurant Supply/Stainless Steel Sink 401-432 Total 669.98 Redpath and Company 401-499 401-499-4308-000 870.00 110493 Audit Progress Billing 401-499 Total 870.00 Emergency Automotive Technologies 402-431 402-431-5000-000 1,641.31 110433 #806 Emergency Safety Lighting Grainger 402-431 402-431-5000-000 299.11 110446 #267 Strobe Page 5 AP Checks by Account Number 06/24/2019 City Council Meeting Vendor Fund/Dept Account Amount Check # Description Midway Ford Company 402-431 402-431-5000-000 33,322.16 110466 #267 2019 Ford F250 Midway Ford Company 402-431 402-431-5000-000 35,730.30 110467 #416 2019 Ford F350 Silver Star Industries 402-431 402-431-5000-000 699.87 110499 #265 Running Boards Back Rack Floor Liner Silver Star Industries 402-431 402-431-5000-000 305.92 110499 #416 Running Boards 402-431 Total 71,998.67 Dell Marketing LP 403-430 403-430-5000-000 757.34 110393 OptiPlex 7060 Factor XCTO & Monitor PW Cartegraph 403-430 Total 757.34 WSB & Associates Inc. 405-499 405-499-4300-120 1,465.50 110511 April Woods Edge Park Final Design 405-499 Total 1,465.50 SHARPER HOMES INC 406-000 406-000-2020-000 9.22 110498 Refund Check 018935-000 6570 ENID TRL SHARPER HOMES INC. 406-000 406-000-2020-000 1.44 110497 Refund Check 019130-000 6594 ENID TRL 406-000 Total 10.66 Anoka County Property Records & Taxation 406-499 406-499-4300-122 46.00 110404 Permanent Easement Shroyer Property Anoka County Property Records & Taxation 406-499 406-499-4300-122 46.00 110404 Permanent Easement Lee Property Rupp Anderson Squires & Waldspurger P.A. 406-499 406-499-4301-122 48.00 110495 April Legal WSB & Associates Inc. 406-499 406-499-4304-000 783.00 110511 April Feasibility Study & Test Well Design & Analysis WSB & Associates Inc. 406-499 406-499-4304-122 710.50 110511 April Lake Drive Watermain Looping & Bituminous Trail WSB & Associates Inc. 406-499 406-499-4304-123 142.50 110511 April 49 & J Lift Station Sewer & Water Extension WSB & Associates Inc. 406-499 406-499-4304-127 10,317.75 110511 April Water Tower #3 Redpath and Company 406-499 406-499-4308-000 4,930.00 110493 Audit Progress Billing Dresel Contracting Inc. 406-499 406-499-4400-122 30,323.71 110429 2018 Trunk Watermain & Trail Project 406-499 Total 47,347.46 WSB & Associates Inc. 420-499 420-499-4304-000 198.75 110511 April 7685 Lake Drive Acquisition Services 420-499 Total 198.75 WSB & Associates Inc. 421-499 421-499-4304-126 6,285.50 110511 April 2019 Road Improvement Project North Valley Inc. 421-499 421-499-4400-126 315,690.13 110475 2019 Mill & Overlay Street Improvements 421-499 Total 321,975.63 Rupp Anderson Squires & Waldspurger P.A. 422-499 422-499-4301-125 928.00 110495 April Legal WSB & Associates Inc. 422-499 422-499-4304-125 238.50 110511 April Northeast Drainage Right of Way Services WSB & Associates Inc. 422-499 422-499-4304-125 6,958.25 110511 April NE Lino Lakes Drainage Extra Services WSB & Associates Inc. 422-499 422-499-4304-125 8,996.50 110511 April Northeast Lino Lakes Drainage Improvement Project Redpath and Company 422-499 422-499-4308-000 580.00 110493 Audit Progress Billing 422-499 Total 17,701.25 WSB & Associates Inc. 424-499 424-499-4304-000 770.00 110511 April 2019 Surface Water Maintenance Project Olson's Sewer Service Inc. 424-499 424-499-4400-000 3,098.81 110479 2017 Surface Water Maintenance Project 424-499 Total 3,868.81 WSB & Associates Inc. 425-499 425-499-4304-128 1,847.50 110511 April Arena Acres Master Plan Midwest Groundcover 425-499 425-499-5000-130 9,720.00 110469 Sunrise Park Engineered Wood Fiber Installation 425-499 Total 11,567.50 Landform 484-499 484-499-4300-000 1,359.75 110458 May 2040 Comp Plan 484-499 Total 1,359.75 WSB & Associates Inc. 485-499 485-499-4304-000 3,774.00 110511 April LaMotte Area Street & Utility Improvements WSB & Associates Inc. 485-499 485-499-4304-000 37,870.25 110511 April West Shadow Lake Drive Construction Phase Forest Lake Contracting Inc. 485-499 485-499-4400-000 48,532.37 110436 2019 LaMotte Area Street & Utility Improvement Project Geislinger and Sons Inc. 485-499 485-499-4400-000 603,642.35 110441 West Shadow Lake Drive Area Street & Utility Improvement Project 485-499 Total 693,818.97 WSB & Associates Inc. 486-499 486-499-4304-000 15,715.50 110511 April 2019 Cedar St/24th Ave/Elmcrest Ave Improvements 486-499 Total 15,715.50 KDC MANAGEMENT LLC IRR 601-000 601-000-2020-000 1,609.20 110454 Refund Check 005105-000 730 APOLLO DR (I) SHARPER HOMES INC 601-000 601-000-2020-000 1.47 110498 Refund Check 018935-000 6570 ENID TRL SHARPER HOMES INC. 601-000 601-000-2020-000 0.23 110497 Refund Check 019130-000 6594 ENID TRL 601-000 Total 1,610.90 U.S. Bank Visa 601-494 601-494-4200-000 32.13 110508 Target/USB Drives for Pheasant Hills Circle Resident Information U.S. Bank Visa 601-494 601-494-4200-000 18.98 110508 Amazon/Business Portfolio Core & Main LP 601-494 601-494-4211-000 231.21 110422 Saddles Menards - Forest Lake 601-494 601-494-4211-000 159.18 110462 PVC Adapters Clorox Wipes Copper Pipe Winnick Supply Inc. 601-494 601-494-4211-000 243.53 110509 Woodford Commercial 3/4x12" Silcock Woodford Coin Key Short Hawkins Inc. 601-494 601-494-4222-000 950.76 110447 Clearitas Hawkins Inc. 601-494 601-494-4222-000 55.00 110447 Chlorine Cylinders U.S. Bank Visa 601-494 601-494-4222-000 276.03 110508 Hach/Fluoride Reagent U.S. Bank Visa 601-494 601-494-4240-000 187.38 110508 Home Depot/Knee Pads Adjustable Wrenches Sharpie Markers Cartegraph Systems Inc. 601-494 601-494-4300-000 3,000.00 110414 Cartegraph Subscription Olson's Sewer Service Inc. 601-494 601-494-4300-000 5,843.84 110478 Watermain Repairs 6643 Sherman Lake Road Redpath and Company 601-494 601-494-4300-000 4,060.00 110493 Audit Progress Billing Page 6 AP Checks by Account Number 06/24/2019 City Council Meeting Vendor Fund/Dept Account Amount Check # Description Rupp Anderson Squires & Waldspurger P.A. 601-494 601-494-4300-000 16.00 110495 April Legal WSB & Associates Inc. 601-494 601-494-4300-000 8,922.00 110511 April Well House #1 Rehabilitation WSB & Associates Inc. 601-494 601-494-4300-000 1,676.25 110511 April Pheasant Hills Watermain Repair WSB & Associates Inc. 601-494 601-494-4304-000 771.00 110511 April GPS/GIS Miscellaneous Assistance WSB & Associates Inc. 601-494 601-494-4304-000 1,110.00 110511 April General Engineering Services TDS Metrocom MN 601-494 601-494-4321-000 38.74 110503 Phone Service U.S. Bank Visa 601-494 601-494-4321-000 121.78 110508 Verizon Wireless U.S. Bank Visa 601-494 601-494-4321-000 -34.97 110508 Verizon Wireless U.S. Bank Visa 601-494 601-494-4321-000 121.78 110508 Verizon Wireless U.S. Bank Visa 601-494 601-494-4321-000 167.43 110508 Verizon Wireless & WiFi Press Publications Inc. 601-494 601-494-4340-000 235.86 110492 Ad for Bids Well House Rehab Connexus Energy 601-494 601-494-4381-000 1,316.17 110421 Electric Centennial Utilities 601-494 601-494-4382-000 376.50 110416 2nd Quarter Water & Sewer CenterPoint Energy 601-494 601-494-4383-000 78.88 110417 Natural Gas-6774 Black Duck Drive CenterPoint Energy 601-494 601-494-4383-000 60.42 110417 Natural Gas-6482 Pheasant Run S CenterPoint Energy 601-494 601-494-4383-000 53.46 110417 Natural Gas-1180 Birch Street CenterPoint Energy 601-494 601-494-4383-000 126.21 110417 Natural Gas-6786 Clearwater Creek Accela Inc. #774375 601-494 601-494-4410-000 275.00 110398 May UB Web Pmts Trans Fees/Active Acct Fee Gopher State One-Call 601-494 601-494-4410-000 422.55 110444 May Tickets Instrumental Research Inc. 601-494 601-494-4410-000 1,420.00 110452 May Water Testing Pheasant Hills Circle Well #1 601-494 Total 32,333.10 SHARPER HOMES INC 602-000 602-000-2020-000 51.37 110498 Refund Check 018935-000 6570 ENID TRL SHARPER HOMES INC. 602-000 602-000-2020-000 8.05 110497 Refund Check 019130-000 6594 ENID TRL 602-000 Total 59.42 Cartegraph Systems Inc. 602-495 602-495-4300-000 3,000.00 110414 Cartegraph Subscription Redpath and Company 602-495 602-495-4300-000 6,670.00 110493 Audit Progress Billing WSB & Associates Inc. 602-495 602-495-4304-000 1,110.00 110511 April General Engineering Services U.S. Bank Visa 602-495 602-495-4321-000 101.78 110508 Verizon Wireless U.S. Bank Visa 602-495 602-495-4321-000 40.01 110508 Verizon Wireless & WiFi U.S. Bank Visa 602-495 602-495-4321-000 101.78 110508 Verizon Wireless U.S. Bank Visa 602-495 602-495-4321-000 102.00 110508 Verizon Wireless Connexus Energy 602-495 602-495-4381-000 732.40 110421 Electric Centennial Utilities 602-495 602-495-4382-000 191.82 110416 2nd Quarter Water & Sewer Centennial Utilities 602-495 602-495-4383-000 20.01 110415 Natural Gas-Sunrise CenterPoint Energy 602-495 602-495-4383-000 23.10 110417 Natural Gas-2028 Cypress Street CenterPoint Energy 602-495 602-495-4383-000 17.95 110417 Natural Gas-2200 E. Cedar Street CenterPoint Energy 602-495 602-495-4383-000 15.60 110417 Natural Gas-1473 Snow Goose Trail CenterPoint Energy 602-495 602-495-4383-000 15.60 110417 Natural Gas-6666 Black Duck Drive CenterPoint Energy 602-495 602-495-4383-000 17.95 110417 Natural Gas-6300 Laurene Ave Met Council Environmental Services 602-495 602-495-4405-000 81,467.66 110463 July Waste Water Services Accela Inc. #774375 602-495 602-495-4410-000 275.00 110398 May UB Web Pmts Trans Fees/Active Acct Fee Gopher State One-Call 602-495 602-495-4410-000 422.55 110444 May Tickets 602-495 Total 94,325.21 U.S. Bank Visa 801-000 801-000-2048-000 25.00 110508 Target/Gift Cards for Employee Appreciation Party U.S. Bank Visa 801-000 801-000-2048-000 25.00 110508 Caribou/Gift Cards for Employee Appreciation Party U.S. Bank Visa 801-000 801-000-2048-000 100.00 110508 Target/Gift Cards for Employee Appreciation Party Kennedy & Graven Chartered 801-000 801-000-2300-000 194.75 110455 April Legal Lyngblomsten Senior Housing TIF KLM Engineering Inc. 801-000 801-000-2300-000 1,591.00 110456 Antenna Inspection Service T-Mobile Main Street Monopole Press Publications Inc. 801-000 801-000-2300-000 84.78 110492 Notice of Public Hearing Saddle Club 4th Addition Rupp Anderson Squires & Waldspurger P.A. 801-000 801-000-2300-000 90.00 110495 April Legal Lyngblomsten Senior Development WSB & Associates Inc. 801-000 801-000-2300-000 855.00 110511 April Lyngblomsten Senior Housing Site Study WSB & Associates Inc. 801-000 801-000-2302-102 3,032.75 110511 April Eastside Villas Rupp Anderson Squires & Waldspurger P.A. 801-000 801-000-2302-103 607.50 110495 April Legal Eastside Villas Boulder Contracting LLC 801-000 801-000-2318-000 3,425.00 110409 Escrow Release 2092 Chestnut Street Magnuson Mark A. 801-000 801-000-2318-000 2,425.00 110460 Escrow Release 2080 Chestnut Street Thoennes Jacob 801-000 801-000-2318-000 2,400.00 110505 Escrow Release 1986 Rosewood Street WSB & Associates Inc. 801-000 801-000-2328-102 345.25 110511 April Main Street Shoppes 2nd Addition WSB & Associates Inc. 801-000 801-000-2329-102 54.50 110511 April NorthPointe WSB & Associates Inc. 801-000 801-000-2332-102 54.50 110511 April Saddle Club WSB & Associates Inc. 801-000 801-000-2336-102 2,861.00 110511 April Watermark 1st Addition WSB & Associates Inc. 801-000 801-000-2344-103 54.50 110511 April Lino Lakes Storage WSB & Associates Inc. 801-000 801-000-2347-102 81.75 110511 April Saddle Club 3rd Addition WSB & Associates Inc. 801-000 801-000-2349-102 188.50 110511 April All Seasons Rental WSB & Associates Inc. 801-000 801-000-2353-102 750.00 110511 April St. Clair Estates Page 7 AP Checks by Account Number 06/24/2019 City Council Meeting Vendor Fund/Dept Account Amount Check # Description WSB & Associates Inc. 801-000 801-000-2359-102 1,262.00 110511 April Saddle Club 4th Addition 801-000 Total 20,507.78 Grand Total 1,636,095.71 Page 8 Electronic Funds Transfer MN Statute 471.38 Subd. 3 Council Meeting June 24, 2019 Transfer In/(Out) 5/31/2019 H.S.A. Bank ER Contribution (June 2019) (6,541.52) 6/7/2019 Council Payroll (2,843.34) 6/7/2019 Council Federal Deposit (213.46) 6/7/2019 Council PERA (319.92) 6/7/2019 Council State (32.15) 6/14/2019 Payroll #12 (145,920.32) 6/14/2019 Payroll #12 Federal Deposit (41,305.15) 6/14/2019 Payroll #12 PERA (43,954.64) 6/14/2019 Payroll #12 State (9,942.21) 6/14/2019 Payroll #12 Child Support (682.37) 6/14/2019 Payroll #12 H.S.A. Bank Pretax (2,550.90) 6/14/2019 Payroll #12 TASC Pretax (883.43) 6/14/2019 Payroll #12 ICMA 457 Def. Comp #301596 (4,590.00) 6/14/2019 Payroll #12 ICMA Roth IRA #706155 (515.75) 6/14/2019 Payroll #12 MSRS HCSP #98946-01 (1,244.04) 6/14/2019 Payroll #12 MSRS Def. Comp #98945-01 (3,360.00) 6/14/2019 Payroll #12 MSRS Roth IRS #98945-01 (490.00) 6/18/2019 Building Permit Surcharge (2,107.93) 6/20/2019 Sales & Use Tax (465.00) CITY COUNCIL WORK SESSION June 3, 2019 DRAFT 1 CITY OF LINO LAKES 1 MINUTES 2 3 DATE : June 3, 2019 4 TIME STARTED : 6:00 p.m. 5 TIME ENDED : 8:10 p.m. 6 MEMBERS PRESENT : Council Member Rafferty, Maher, 7 Manthey, Stoesz and Mayor Reinert 8 MEMBERS ABSENT : None 9 10 Staff members present: City Administrator Jeff Karlson; Public Safety Director John 11 Swenson; Community Development Director Michael Grochala; Finance Director Sarah 12 Cotton; Human Resources Manager Karissa Bartholomew; Public Services Director Rick 13 DeGardner; City Engineer Diane Hankee; City Planner City Clerk Julie Bartell 14 1. Review 2018 Annual Audit, Redpath & Company, Ltd. – Finance Director 15 Cotton and Andy Hering, Redpath and Company reported. Mr. Hering reviewed a 16 PowerPoint Presentation outlining the results of the 2018 Audit. Information was 17 presented on the following: 18 19 - Excellence in Financial Reporting Certificate; 20 - No items on which to follow up on the 2017 Audit; 21 - Reports that are issued for the audit relate to the auditor’s opinion, an 22 internal control report, legal compliance report, and an executive report to City 23 Council; 24 - The City has received a clean opinion; 25 - The City Charter requires adoption of a five-year financial plan and that 26 hasn’t been done recently; 27 - Review of schedule used for audit; 28 - Audit practice includes looking at completeness, occurrences and 29 accuracy, using data mining techniques; 30 - The letter to the City Council includes communications (that were 31 reviewed); 32 - Pension Liability – figures were reviewed; 33 - Summary of financial activity; General Fund; Special Revenue Fund; 34 Capital Project Fund; and Enterprise Fund. 35 Mr. Hering concluded that it was a very good audit and he found staff well prepared. 36 37 Ms. Cotton said the audit will be briefly reviewed at the upcoming council meeting and 38 the council will be asked to formally accept the audit results. 39 2. MS4 Annual Report – City Engineer Hankee reviewed a PowerPoint 40 Presentation outlining the City’s activities and events related to the MS4 Program. The 41 annual report is required in order for the City to maintain its permit to operate a storm 42 sewer system to discharge storm water. 43 CITY COUNCIL WORK SESSION June 3, 2019 DRAFT 2 44 The report was reviewed and will be submitted as requested. 45 3. Elmcrest Ave and Cedar Street Update – City Engineer Hankee reported on the 46 estimated project costs and planned funding. Based on the geotechnical analysis, they 47 are recommending not digging out all the peat encountered but to bridge it. Under that 48 scenario, staff is estimating an additional cost of $40,000. The budget could be impacted 49 but the impact isn’t completely clear at this point, pending the bid process. 50 51 Council Member Stoesz asked if concrete would be a better alternative and Ms. Hankee 52 explained why it would not. 53 54 Ms. Hankee added that currently contractors are very busy and costs are rising as a result. 55 Bids on this project will be presented to the Council at the end of July. 56 4. Blue Heron Days Parade - Public Safety Director Swenson noted his previous 57 report to the council on improving access for the parade (by utilizing an area by the 58 Target store). Discussion has occurred with Target Corporation he feels that they are 59 agreeable but must see the gate prior to their final concurrence. He noted a cost to this 60 project (the gate) of $7,500 to $8,000, a cost that is non-budgeted at this point. Staff is 61 looking for council direction on proceeding. 62 63 Council Member Stoesz asked if this would be a good opportunity to connect Jane Street. 64 Community Development Director Grochala said that connection is planned for the 65 further into the future. 66 67 The council concurred with moving forward. 68 5. Fire Division Staffing – Public Safety Director Swenson reviewed his written 69 report. He is making the council aware of staffing levels at the fire stations, and in 70 particular at Station No. 1. He reviewed efforts (ongoing) to recruit paid on-call 71 personnel. Those effort include recruiting signage. On the matter of signs, Council 72 Member Manthey suggested preparing quality signs because they will probably have to be 73 used again. 74 75 Director Swenson reviewed information on the need for a memorandum of understanding 76 with the LELS union to allow City police officers to serve as paid on-call as well. There 77 are currently four police officers within the required area. Staff has reviewed the pension 78 implications and information is included in the staff report. 79 80 The council concurred with the staff recommendation. Director Swenson indicated he 81 will report back with an agreement when that is appropriate. 82 6. Pheasant Hills Watermain Discussion – Public Services Director DeGardner, 83 Craig Alberg of WSB & Associates, Justin Williams, City Utility Supervisor, and City 84 CITY COUNCIL WORK SESSION June 3, 2019 DRAFT 3 Engineer Hankee reported. The council received a written report on the matter of the 85 Pheasant Hills water main break situation. Mr. Alberg reviewed the situation whereby 86 bolts holding a water main valve had deteriorated and gave way to a leak. Within a day 87 the bolts causing the problem were replaced. There is concern about the vibration of 88 equipment used on the street work as it relates to the deteriorated bolts. The vibrations 89 can be partially mitigated. The paving has been halted pending a decision on the 90 problem. Mr. Alberg and staff have discussed options moving forward: a) replacing 91 other valve bolts in the neighborhood; or b) system replacement. The recommendation is 92 to replace valve bolts within the neighborhood. There is also the question of including 93 this type of bolt replacement in future street projects. 94 95 Council Member Rafferty asked for clarification on bolts to be replaced. Mr. Alberg said 96 they are proposing to replace only the main line valve bolts; they would also be able to 97 view and evaluate to a certain extent if other fixes are needed. 98 99 Council Member Rafferty and City Engineer Hankee discussed when the standard of bolt 100 changed; it was indicated in the written report that the better stainless steel bolt became 101 the standard in the late 1990’s. Ms. Hankee remarked that the soil conditions surrounding 102 the bolts can impact the life of the bolts; soil samples from this area will be collected in 103 the area of this problem for better understanding. 104 105 Utility Supervisor Williams added that the City has been making replacements with the 106 better quality bolts at every opportunity for some time. 107 108 Mayor Reinert confirmed that the recommendation is to replace not only the bolts in the 109 failed main area but to do replacement throughout the area of the project since the road 110 isn’t finished. Staff added that they would also have to work out a situation that brings 111 the road contractor back later in the year. The mayor remarked that he is aware that there 112 was a water main break on private property in the same neighborhood and he clarified: 1) 113 that the problem was caused by bad bolts; and 2) that residents are individually 114 responsible for those repairs. 115 116 Mr. Williams stated that it is far cheaper to replace all the bolts at one time rather than as 117 they fail because you are mobilizing the work at one time. 118 119 Mayor Reinert suggested that staff should consider the situation whereby property owners 120 are facing large repair costs. 121 122 Finance Director Cotton explained that staff has had some preliminary discussions about 123 how the City could address that liability. Options such as League of Minnesota Cities 124 Insurance Trust coverage or an internal self-insurance fund. The mayor suggests that 125 staff report back on a relief to residents program. 126 127 7. Environmental Coordinator Position – Community Development Director 128 Grochala reviewed information included in the council packet laying out where this 129 CITY COUNCIL WORK SESSION June 3, 2019 DRAFT 4 position originated, studies done through that position over the past years, and the many 130 hats that are covered by the position. He reviewed the information included in the 131 position review and also his recommendations on salary if the position is filled. 132 133 Council Member Stoesz asked how much overlap is occurring with services offered by 134 WSB & Associates and this position. Mr. Grochala suggested there is not much overlap. 135 136 The mayor suggested that the process of putting together the job description has been 137 very helpful; Mr. Grochala concurred. 138 139 8. Job Classification and Compensation Study – Human Resources Manager 140 Bartholomew reviewed her written report that includes information on the City’s current 141 compensation situation as it relates to pay equity. Two options are included in the report 142 on moving forward with a study that would provide valuation information tht could be 143 used to formulate the City’s compensation plan. 144 145 Mayor Reinert asked why addressing individual salaries is no longer acceptable for 146 meeting pay equity requirements. Ms. Bartholomew used a chart to show how points 147 and pay for certain positions are not in alignment. 148 149 Funding is proposed from the Contingency Fund. 150 151 The council concurred with the option to move ahead with utilizing a compensation 152 consultant. 153 154 9. 2020 Budget – Finance Director Cotton noted valuation information received 155 from the county, the amount of revenue that would be raised with the current tax rate, and 156 that the City has used surplus funds in the past budget that won’t be available in the 157 coming year. Staff plans to schedule the first budget meeting in July. She asked that the 158 council indicate any priorities for the budget at this time. 159 160 The council concurred on establishing a special meeting to discuss the 2020 budget on 161 July 29, 2019 at 6:00 p.m. 162 163 10. Council Updates on Boards/Commissions, City Council – None. 164 11. Monthly Progress Report – Administrator Karlson reported that there is no 165 news. 166 Review Regular Council Agenda of June 3, 2019 – 167 168 Item 6A - Saddle Club, 4th Addition – City Planner Larsen reviewed an aerial map of the 169 addition. It includes eight lots and the council has previously seen a preliminary plat. 170 She reviewed a few slides with information on the project. 171 172 CITY COUNCIL WORK SESSION June 3, 2019 DRAFT 5 The meeting was adjourned at 8:10 p.m. 173 174 These minutes were considered, corrected and approved at the regular Council meeting held on 175 June 24, 2019. 176 177 178 179 180 Julianne Bartell, City Clerk Jeff Reinert, Mayor 181 182 COUNCIL MINUTES June 10, 2019 DRAFT 1 CITY OF LINO LAKES 1 MINUTES 2 3 4 DATE : June 10, 2018 5 TIME STARTED : 6:30 p.m. 6 TIME ENDED : 7:10 p.m. 7 MEMBERS PRESENT : Council Member Rafferty, Maher, 8 Manthey, Stoesz and Mayor Reinert 9 MEMBERS ABSENT : 10 11 Staff members present: City Administrator Jeff Karlson; Community Development Director Michael 12 Grochala; City Planner Katie Larsen; Finance Director Sarah Cotton; and City Clerk Julie Bartell 13 14 PUBLIC COMMENT 15 16 No one was present to address the council regarding a matter not on the agenda. 17 18 SETTING THE AGENDA 19 20 The agenda was approved as presented. 21 22 CONSENT AGENDA 23 24 Council Member Manthey moved to approve the Consent Agenda, Items 1A through 1G, as 25 presented. Council Member Stoesz seconded the motion. Motion carried on a voice vote. 26 27 ITEM ACTION 28 29 Consideration of Expenditures: 30 31 June 10, 2019 (Check No. 110331 – 110391, 32 in the amount of $245,954.04) Approved 33 34 May 28 , 2019 Council Work Session Minutes Approved 35 36 May 28 , 2019 City Council Meeting Minutes Approved 37 38 Consider Approval of Resolution No. 19-68, Approving 39 Tobacco License Renewals Approved 40 41 Consider Approval of Resolution No. 19-69, Approving 42 the Renewal of Liquor, Wine and Beer Licenses Approved 43 44 Consider Approval of Resolution No. 19-70, Approving a 45 COUNCIL MINUTES June 10, 2019 DRAFT 2 Temporary On-Sale Liquor License, a Cabaret License, 46 Exemption for Gambling Permit and Parade Run Permit for 47 the Annual St. Joseph’s Church’s August Festival Approved 48 49 Consideration of Not Waiving Monetary Limits on Tort 50 Liability per MN Statute 466.04 Approved 51 52 FINANCE DEPARTMENT REPORT 53 54 2A) Consider Accepting 2018 Audit Report, Redpath and Company, Ltd – Finance Director 55 Cotton noted that the City contracts annually for a financial audit. The 2018 audit was performed by 56 Redpath and Company and she introduced company representative Andy Hering to present the audit 57 results. 58 59 Mr. Hering reviewed a PowerPoint presentation that included information on the following: 60 - Recap of audit process; 61 - Opinion on Finance Statement; 62 - Report on Internal Controls; 63 - Report on Legal Compliance; 64 - Communication to Those Charged with Governance. 65 66 It was noted that the council had more fully reviewed the audit results at the last work session. 67 68 Council Member Stoesz asked for Mr. Hering’s opinion on transitioning to electronic transactions 69 instead of paper checks. Mr. Hering explained how that process is engaged and regulations that 70 govern the process. There could be implications on the work level for city finance staff. 71 72 Council Member Rafferty asked Mr. Hering, in his experience, is there a way to get a better return on 73 the City’s investment dollars; are other cities doing something better? Mr. Hering responded that 74 generally the answer would be no; the cities that he works with are pretty much similar in their 75 investment technique. One variable is how long you are willing to keep money in one area. He feels 76 that the City is in the ballpark with what other cities are getting in returns. 77 78 Council Member Maher moved to accept the results of the 2018 audit as presented. Council Member 79 Stoesz seconded the motion. Motion carried on a voice vote. 80 81 ADMINISTRATION DEPARTMENT REPORT 82 There was no report from the Administration Department. 83 84 PUBLIC SAFETY DEPARTMENT REPORT 85 86 There was no reports from the Public Safety Department. 87 88 PUBLIC SERVICES DEPARTMENT REPORT 89 COUNCIL MINUTES June 10, 2019 DRAFT 3 There was no report from the Public Services Department. 90 91 COMMUNITY DEVELOPMENT DEPARTMENT REPORT 92 93 6A) Saddle Club Fourth Addition: i. Consider Resolution No. 19-63, Approving PUD Final 94 Plat; ii. Consider Resolution No. 19-63, Approving PUD Final Plan/Final Plat – City Planner 95 Larsen reviewed a PowerPoint presentation including information on: 96 - Developer and proposed general plans; 97 - Map of location; 98 - Previous council actions (rezoning, 99 - Final plat approval is being requested; 100 - Transportation and Utility Connection; 101 - Park dedication fees; 102 - Planning & Zoning Board recommendation to approve. 103 104 Council Member Stoesz asked where the wetland bank credits are coming from. Staff indicated a 105 location outside of the City and provided an explanation of the wetland bank process. 106 Council Member Manthey moved to approve Resolution No. 19-48 as presented. Council Member 107 Rafferty seconded the motion. Motion carried on a voice vote. 108 Council Member Manthey moved to approve Resolution No. 19-48 as presented. Council Member 109 Rafferty seconded the motion. Motion carried on a voice vote. 110 6B) Consider Resolution No. 19-67, Ordering Project, Approving Plans and Specifications and 111 Authorizing Advertisement for Bids, for the East Cedar Street & 24th Avenue/Elmcrest Avenue 112 North Improvement Project – WSB & Associaties representative Brian Bourassa reviewed the 113 request for approval of actions to move forward on these road projects. He reviewed the areas included 114 in the project. Some financial responsibility for the project will be covered by the City of Hugo since 115 the project area includes both cities. He explained the planned bidding process that should get the best 116 result. 117 Mayor Reinert remarked that this project will impact a couple of streets that really need work. In the 118 case of Elmcrest, the roadway runs through two cities and two counties; teaming up with Hugo is a 119 good way to address the needed work. The City has worked with Hugo on getting Cedar done as well. 120 The result is a sharing of costs. 121 122 Council Member Rafferty extended thanks to staff and the engineers of the City of Hugo for working 123 out a good project. 124 125 Council Member Maher moved to approve Resolution No. 19-67 as presented. Council Member 126 Rafferty seconded the motion. Motion carried on a voice vote. 127 128 6C) Consider Resolution 19-71, Accepting Quotes and Awarding a Construction Contract 129 for Well No. 7 (Screened Test Well) - Community Development Director Grochala reviewed staff’s 130 request to receive a quote and award a construction contract for this well project. The council was 131 COUNCIL MINUTES June 10, 2019 DRAFT 4 informed that only one quote was received. 132 133 Council Member Manthey asked if there is an concern that there was only one quote received. Mr. 134 Grochala said the company that came forward is good in the field and he is confident in their work. 135 136 Council Member Rafferty moved to approve Resolution No. 19-71 as presented. Council Member 137 Maher seconded the motion. Motion carried on a voice vote. 138 139 UNFINISHED BUSINESS 140 141 There was no Unfinished Business. 142 143 NEW BUSINESS 144 145 Mayor Reinert read a letter into the record from Bramstedt Surgical, Inc. at 524 Apollo Drive 146 complimenting the work of two Lino Lakes’ police officers who responded to their call regarding 147 possibly burglary. 148 149 COMMUNITY EVENTS 150 151 MONTHLY RECYCLE DAY will be held at Lino Park (7850 Lake Drive) on Saturday, June 15 from 152 10:00 a.m. to 2:00 p.m. See city website for a list of accepted items. 153 154 COMMUNITY CALENDAR 155 156 Community Calendar – A Look Ahead 157 June 10, 2019 through June 24, 2019 158 Wednesday, June 12 6:30 pm, Council Chambers Planning & Zoning Board 159 Monday, June 24 6:00 pm, Community Room Council Work Session 160 Monday, June 24 6:30 pm, Council Chambers City Council Meeting 161 162 ADJOURN 163 164 There being no further business, Council Member Rafferty moved to adjourn at 7:10 p.m. Council 165 Member Maher seconded the motion. Motion carried. 166 167 These minutes were considered and approved at the regular Council Meeting on June 24, 2019 168 169 170 171 172 Julianne Bartell, City Clerk Jeff Reinert, Mayor 173 174 CITY COUNCIL AGENDA ITEM 1E STAFF ORIGINATOR: Lisa Hogstad-Osterhues, Deputy Clerk MEETING DATE: June 24, 2019 TOPIC: Resolution No. 19-73, Approving a Peddler License for Clearway Community Solar VOTE REQUIRED: 3/5 BACKGROUND A representative from Clearway Community Solar, Portland, Oregon, has submitted a peddler’s license application to the City Clerk's office. The company representative who would be working in Lino Lakes is Mr. Gregory Green, sales representative. He plans to travel through the Lino Lakes’ neighborhoods going door to door offering community solar subscriptions to potential clients. The City has received all the necessary forms required to issue this company a license and indicates no reason to deny the application. The application and all other required information is on file in the City Clerk's office for review. RECOMMENDATION Approve Resolution No. 19-73, Approving the issuance of a Peddler License for a six month period starting June 25, 2019 through December 25, 2019. CITY OF LINO LAKES COUNTY OF ANOKA RESOLUTION NO. 19-73 APPROVING A PEDDLER LICENSE FOR CLEARWAY COMMUNITY SOLAR WHEREAS, Gregory Green, sales representative for Clearway Community Solar has submitted a peddlers license application to the city clerk's office; and WHEREAS, Gregory Green has complied with all of the provisions of Chapter 613 of the Lino Lakes City Code for obtaining the necessary license; and WHEREAS, the Lino Lakes Public Safety Department has conducted a background check and has found no reason to deny the license; and NOW, THEREFORE, BE IT RESOLVED that the Lino Lakes City Council hereby approves the request of Clearway Community Solar to sell services door to door for a period of six-months beginning June 25, 2019 and ending December 25, 2019. Adopted by the Council of the City of Lino Lakes this 24th of June, 2019. The motion for the adoption of the foregoing resolution was introduced by Council Member _____________ and was duly seconded by Council Member ___________ and upon vote being taken thereon, the following voted in favor thereof: The following voted against same: _____________________ Jeff Reinert, Mayor ATTEST: ________________________ Julianne Bartell, City Clerk CITY COUNCIL AGENDA ITEM 1F STAFF ORIGINATOR: Lisa Hogstad-Osterhues, Deputy City Clerk MEETING DATE: June 24, 2019 TOPIC: Consider Approval of Resolution No. 19-74, Approving Enterprise and Individual Massage Renewal Licenses VOTE REQUIRED: 3/5 BACKGROUND The City of Lino Lakes has approved regulations that license the practice of massage therapy in the City. At this time there are five massage businesses that have applied for enterprise and/or individual licensing and have met the requirements to be licensed. They are: Heather’s Healing Hands, Allure Salon, Self Essential Therapeutic Massage, Monarch Massage and Linae Dufresne Massage. Under city policy, applicants applying for the enterprise or individual massage licenses are required to undergo a background investigation. The Public Safety Department has conducted the background investigations and did not discover any disqualifying offenses that would prevent licensing. Licensees are required to provide identification, to submit verification of proof of accreditation, work comp insurance if applicable as well as pay appropriate fees. No license will be released until all requirements are met. RECOMMENDATION Adopt Resolution 19-74 approving a massage licenses for enterprise and individual licenses for a period of July 1, 2019 through June 30, 2020. ATTACHMENTS Resolution 19-74 Exhibit A - 2019 Massage Enterprise and Individual License List CITY OF LINO LAKES RESOLUTION NO. 19-74 Approving Massage Enterprise and Individual Licenses WHEREAS, the City Council has recently approved regulations that license the practice of massage therapy in the City. WHEREAS, the licensing period for Massage Enterprise and Individual Licenses in the City of Lino Lakes is one year, commencing on July 1 and ending on June 30 the following year; WHEREAS, City staff has reviewed the applications that have been submitted and verified that local licensing regulations are met; WHERAS, the Lino Lakes Public Service Department has conducted the required background investigations for license renewals and has found no reason to deny; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LINO LAKES, MINNESOTA: The City of Lino Lakes hereby approves the massage enterprise and individual licenses on Attachment A with said approval contingent upon applicants meeting all city and state requirements for said licenses. Adopted by the Council of the City of Lino Lakes this 24th day of June, 2019. The motion for the adoption of the foregoing resolution was introduced by Council Member _____________and was duly seconded by Council Member _____________ and upon vote being taken thereon, the following voted in favor thereof: The following voted against same: ________________________ Jeff Reinert, Mayor ATTEST: ________________________ Julianne Bartell, City Clerk EXHIBIT A 2019/2020 Massage Enterprise and Individual License List Applicant License Type Heather’s Healing Hands 7094 Lake Drive Lino Lakes, MN 55014 Heather Lewis - Owner Sara Thornbloom - Employee 1 Enterprise 2 Individual Allure Salon 6511 Ware Road Lino Lakes, MN 55014 Kristina Mohlin – Owner Ashley Bohr - Employee 1 Enterprise 1 Individual Self Essential Therapeutic Massage Shauna Stelter 7771 Lake Drive Lino Lakes, MN 55014 1 Enterprise 1 Individual Monarch Massage 7094 Lake Drive Lino Lakes, MN 55014 Manel Renshaw - Owner 1 Enterprise 1 Individual Linae Dufresne Massage 7094 Lake Drive Lino Lakes, MN 55014 Linae Dufresne - Owner 1 Enterprise 1 Individual All approvals are contingent upon the applicant(s) meeting all state and local requirements. All approvals are for the period of July 1, 2019 through June 30, 2020 CITY COUNCIL AGENDA ITEM 1G STAFF ORIGINATOR: Lisa Hogstad-Osterhues, Deputy City Clerk MEETING DATE: June 24, 2019 TOPIC: Consider Resolution No. 19-78, Approving an Application for Chain of Lakes Rotary for an Exemption for Gambling Permit for the 9th Annual Family Corn Roast VOTE REQUIRED: 3/5 INTRODUCTION The City of Lino Lakes is hosting its 9th Annual Family Corn Roast on Thursday, July 25, 2019. As part of the festival, there will be raffle tickets for sale to win prizes. BACKGROUND The Chain of Lakes Rotary has applied for an Exempt Permit to allow charitable gambling. Non-profit organizations are allowed under State gambling laws to apply for an exempt permit if they conduct fewer than five (5) gambling occasions per year. RECOMMENDATION Approval of Resolution No. 19-78, Approving an Exemption for Gambling Permit for the Chain of Lakes Rotary to conduct a raffle at the 9th Annual Family Corn Roast. ATTACHMENTS Resolution 19-78 CITY OF LINO LAKES RESOLUTION NO. 19-78 Approving Application for a Lawful Gambling Permit for the Chain of Lakes Rotary at the 9th Annual Family Corn Roast WHEREAS, the Chain of Lakes Rotary has made application for a an exempt lawful gambling permit for the 9th Annual Family Corn Roast held Thursday, July 25, 2019; and WHEREAS, city staff has reviewed the Application for Exempt Permit for the festival event for concurrence with city regulations; and WHEREAS, there is a current background investigation on file that was conducted by the Public Safety Department; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lino Lakes, Minnesota: That the City Council hereby approves an application for exemption for gambling permit for the 9th Annual Family Corn Roast. Adopted by the Council of the City of Lino Lakes this 24th day of June, 2019. The motion for the adoption of the foregoing resolution was introduced by Council Member _____________and was duly seconded by Council Member _____ and upon vote being taken thereon, the following voted in favor thereof: The following voted against same: _____________________ Jeff Reinert, Mayor ATTEST: ___________________________ Julianne Bartell, City Clerk CLOSED COUNCIL SESSION June 10, 2019 DRAFT 1 1 CITY OF LINO LAKES 2 MINUTES 3 CLOSED COUNCIL SESSION 4 5 DATE : June 10, 2013 6 TIME STARTED : 7:15 p.m. 7 TIME ENDED : 7:48 p.m. 8 MEMBERS PRESENT : Council Members Rafferty, Manthey, 9 Maher, Stoesz and Mayor Reinert 10 MEMBERS ABSENT : 11 12 Staff present: City Administrator Jeff Karlson. 13 14 Mayor Reinert called the meeting to order at 7:15 p.m. in the Council Work Room at 15 Lino Lakes City Hall. 16 17 The meeting was convened as a closed session of the city council pursuant to the Open 18 Meeting Law for the express purpose of discussing the city administrator performance 19 review and labor negotiations. 20 21 The meeting was recorded. 22 23 The meeting was adjourned at 7:48 p.m. 24 25 These minutes were considered, corrected and approved at the regular Council meeting held on 26 June 24, 2019. 27 28 29 30 31 Julianne Bartell, City Clerk Jeff Reinert, Mayor 32 33 CITY COUNCIL AGENDA ITEM 1I STAFF ORIGINATOR: Lisa Hogstad-Osterhues, Deputy City Clerk MEETING DATE: June 24, 2019 TOPIC Consider Resolution No. 19-79, Authorizing issuance of a Special Event Permit for Hammerheart Brewing Co. VOTE REQUIRED: 3/5 INTRODUCTION City Code Chapter 615 are the City’s regulations regarding special events. The purpose of these regulations is to protect the health, safety and welfare of citizens by regulating time, place and manner of conduct by establishing permit requirements. The City charges a fee of $50 for special event permits. BACKGROUND The City has received an application from Hammerheart Brewing Co. to hold a special event on their property Fridays, Saturdays, Sundays and occasionally other days of the week from 1:30 p.m. to 9:30 p.m. The special event permit will allow food truck vendors in their parking lot, serving their customers. The Public Safety Department has reviewed the applications and have signed off on the permit. Staff has reviewed the application including their plans for food truck location. Since food service is involved, a condition is being attached to the permit requiring food vendors to receive permission from the Anoka County Environmental Services and to provide their state licensing information. RECOMMENDATION Hammerheart’s application for a special event permit meets the requirements of the city code and has not been found to present any safety concerns. Therefore, staff recommends that the council approve Resolution No. 19-79, Authorizing issuance of a Special Event Permit. ATTACHMENTS Resolution No. 19-79 CITY OF LINO LAKES RESOLUTION NO. 19-79 APPROVING A SPECIAL EVENT PERMIT FOR HAMMERHEART BREWING CO. WHEREAS, owner, Nathaniel Chapman has submitted an application for a special event permit; and WHEREAS, Hammerheart wishes to allow food truck vendors at their business; and WHEREAS, a food truck vendor would be present Friday, Saturday, Sunday and occasional other days of the week from the hours of 1:30 p.m. and 9:30 p.m.; and WHEREAS, Hammerheart has submitted a plot plan of where the food truck will be located on their property; and WHEREAS, food truck vendors are required to contact the Anoka County Environmental Services at 763-422-7069 for permission to operate in the City. WHEREAS, food truck vendors are required to provide their state licensing information to Hammerheart and/or Anoka County Environmental Services. WHEREAS, the public safety department requires food vendor to be at least 20 feet from the structure; WHEREAS, city staff has reviewed the special event plans and have determined that they meet the requirements of the City’s ordinances; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lino Lakes, Minnesota: That the City Council hereby authorizes the issuance of a Special Event Permit to Hammerheart Brewing Co. to be held Fridays, Saturdays, Sundays and occasional other days of the week. Adopted by the Council of the City of Lino Lakes this 24th day of June, 2019. The motion for the adoption of the foregoing resolution was introduced by Council Member _____________and was duly seconded by Council Member _____________ and upon vote being taken thereon, the following voted in favor thereof: The following voted against same: _____________________ Jeff Reinert, Mayor ATTEST: ___________________________ Julianne Bartell, City Clerk CITY COUNCIL AGENDA ITEM 6A STAFF ORIGINATOR: Michael Grochala, Community Development Director MEETING DATE: June 24, 2019 TOPIC: Consider Resolution No. 19-77, Approving 1st Amendment to the CDBG and HOME Cooperation Agreement with Anoka County. VOTE REQUIRED: 3/5 INTRODUCTION Staff is requesting council consideration to approve the 1st Amendment to the Cooperation Agreement with Anoka County for participation in the in the Community Development Block Grant and Home Investment Partnership Program. BACKGROUND Since 2001, the City of Lino Lakes has participated in the Anoka County “Urban County” qualification to receive and administer U.S. Housing and Urban Development (HUD) funds. On April 22, 2019 the City Council approved Resolution No. 19-50 agreeing to continue participation in the program for Federal Fiscal years 2020-2022. As part of the program participation the County has requested City consideration of the 1st Amendment to the Cooperation Agreement, adopted by the City in 2007. The amendment provides administrative updates to the agreement based on current HUD regulations. The amendment provides for the following: 1. Inserts a clause that requires the amendment of cooperation agreements to meet new HUD requirements. Failure to do so will void renewal of three year county qualification period. 2. Prohibits the sale or transfer of received funding to another governmental unit in exchange for other funds, credits, or other considerations. RECOMMENDATION Staff is recommending approval of Resolution No. 19-77, Approving 1st Amendment to the CDBG and HOME Cooperation Agreement with Anoka County. ATTACHMENTS 1. Resolution No. 19-77 2. 1st Amendment to Cooperation Agreement 3. 2007 CDBG Cooperation Agreement CITY OF LINO LAKES RESOLUTION NO. 19-77 APPROVING 1ST AMENDMENT TO THE CDBG AND HOME COOPERATION AGREEMENT WITH ANOKA COUNTY WHEREAS, the City of Lino Lakes and the County of Anoka have determined that it is desirable and in the interests of its Citizens that the County qualifies as an urban county with the provisions of the Housing and Urban Development Act of 1974, Title 1, of Public Law 93-383, as amended (42 USC 5301 et seq)(the “Act”); and WHEREAS, the City and County have entered into a Cooperation Agreement which authorizes the County to participate with the City in undertaking essential community development and housing assistance activities pursuant to the CDBG Entitlement Program and the HOME Investment Partnerships Program; and WHEREAS, the City, pursuant to Resolution No. 19-50, adopted April 22, 2019, extended it’s participation in the program for Federal Fiscal Years 2020 through 2022, and WHEREAS, the County has requested approval of the 1st Amendment to the Cooperation Agreement to bring the terms into compliance with federal HUD regulations. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LINO LAKES, MINNESOTA, that the 1st Amendment to the Cooperation Agreement with Anoka County is hereby approved. The Mayor and City Clerk are hereby authorized to execute the amendment on behalf of the City. Adopted by the Council of the City of Lino Lakes this 24nd day of June, 2019. The motion for the adoption of the foregoing resolution was introduced by Council Member _____________and was duly seconded by Council Member _____________ and upon vote being taken thereon, the following voted in favor thereof: The following voted against same: _____________________ Jeff Reinert, Mayor ATTEST: ________________________ Julianne Bartell, City Clerk AMENDMENT NO. 1 TO COMMUNITY DEVELOPMENT BLOCK GRANT and HOME INVESTMENT PARTNERSHIPS PROGRAM COOPERATION AGREEMENT THIS AMENDMENT is made and entered into this _____ day of _________, 2019 (“Effective Date”), by and between the County of Anoka, a political subdivision of the State of Minnesota, 2100 Third Avenue, Anoka, Minnesota, 55303 (“County”), and the City of Lino Lakes, a municipal corporation under the laws of the State of Minnesota, 600 Town Center Parkway, Lino Lakes, MN 55014 (“Cooperating Community”). WITNESSETH: WHEREAS, the Cooperating Community and the County have determined that it is desirable and in the interests of its citizens that the County qualifies as an urban county within the provisions of the Housing and Community Development Act of 1974, Title I, of Public Law 93-383, as amended (42 USC 5301 et seq) (the “Act”). WHEREAS, the Cooperating Community and the County previously entered into an auto- renewable Cooperation Agreement (“Agreement”) which authorizes the County to participate with the Cooperating Community in undertaking, or to assist in undertaking, essential community development and housing assistance activities pursuant to the CDBG Entitlement Program and the HOME Investment Partnerships Program; and WHEREAS, the parties’ Cooperation Agreement provides that, from time to time, as federal laws and regulations change, updates to the Agreement may be required to bring the terms into compliance with federal HUD regulations; and WHEREAS, the County intends that identical amendments to cooperation agreements will be executed between the County and other cities and townships within the County, thus enabling the County to continue to qualify under the Act and remain in compliance with HUD guidance, CPD 19-04 issued on March 8, 2019. NOW, THEREFORE, in consideration of the mutual covenants hereinafter stated and those contained in the original Cooperation Agreement, the parties agree to amend the Agreement as follows: 1. Section V. entitled “Special Provisions,” paragraph C. is amended to add the following language at the end of the provision: “If either party refuses to adopt an amendment incorporating changes necessary to meet requirements for cooperation agreements set for in an Urban County Qualification Notice applicable for a subsequent three-year county qualification period, such failure to comply will void the automatic renewal for such qualification period.” 2. Section V. entitled “Special Provisions,” paragraph G. is amended to add the following language at the end of the provision: “A unit of general local government may not sell, trade, or otherwise transfer all or any portion of such funds to another such metropolitan city, urban county, unit of general local government, or Indian tribe, or insular area that directly or indirectly received CDBG funds in exchange for any other funds, credits or non-Federal considerations, but must use such funds for activities eligible under title I of the Act.” 3. This Amendment is hereby made a part of and shall be amended to the Cooperation Agreement of the parties. 4. All other terms and conditions of the original Cooperation Agreement, not modified by this Amendment, shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have set their hands on the dates indicated. COUNTY OF ANOKA By: ________________________________ Scott Schulte, Chair County Board of Commissioners Dated: ______________________________ ATTEST By: ________________________________ Rhonda Sivarajah County Administrator Dated: ______________________________ APPROVED AS TO FORM By: ________________________________ Christine Carney Assistant County Attorney Dated: _____________________________ CITY OF LINO LAKES By: ________________________________ Jeff Reinert Its: Mayor Dated: ______________________________ ATTEST By: ________________________________ Julianne Bartell Its: City Clerk Dated: ______________________________ APPROVED AS TO FORM By: ________________________________ Dated: ______________________________ ANOKA CO{JNTY COMMUNITY DEVELOPMENT BLOCK GRANT and HOME INVESTMENT PARTINERSHIP PROGRAM COOPERATION AGREEMENT THIS AGREEMENT is made and entered into under the requirements of the federal Community Development Block Grant (CDBG) program and HOME Investment Partnership Program by and between the COUNTY OF ANOKA, State of Minnesota, hereinafter referred to as "COUNTY" and the CITY OF LINO LAKES hereinafter referred to as "COOPERATING COITY", said parties to this Agreement each being governmental units of the State of Minnesota, and is made pursuant to Minnesota Statutes, Section 471.59. WITNESSETH: WHEREAS, Title I of the Housing and Community Development Act of 1974, as amended, provides for a program of cornrnunity development block grants, as implemented by Part 570, Title 24, Code of Federal Regulations, governing the applicability and rise of funds under Title I; and WHEREAS, Title II of the Cranston-Gonzales National Affordable Housing Act of 1990, and as amended provides for a program known as the HOME Investment Partnership program. Part 92 of Title 24 of the Code of Federal Regulations sets forth regulations governing the applicability and use of funds under Title II; and WHEREAS, Anoka County, Minnesota qualifies under said law as an "urban county" eligible to receive community development block grants funds; and WHERAS, the County's population, among other factors, is determinant of the eligibility of the County and the amount of resources which may be made available to the County to undertake activities under the afore-referenced law; and WHEREAS, Section 24 CFR 570.307, titled "urban counties" provides that computation of the County's population may include persons residing in "unincorporated areas" and in "its included parts of general local government with which it has entered into cooperative agreements to undertake or to assist in the undertaking of essential activities pursuant to community development block grants"; and WHEREAS, it is in the interest of the Cooperating Community, to have its population counted together with other municipalities of Anoka County who similarly agree; NOW, THEREFORE, in consideration of mutual covenants and promises contained in this Agreement, the parties mutually agree to the following terms and conditions. 1 SECTION I. DEFINITIONS For the purpose of this Agreement, the terms defined in this section have the meanings given to them: A. "The Act" means the Housing and Community Development Act of 1974, Title I, of Public Law 93-383, as amended (42 USC 5301 et seq.) B. "Regulations" means the rules and regulations promulgated pursuant to the Act, including but not limited to 24 CFR Part 570. C. "HUD" means the United States Department of Horising and Urban Development D. "Cooperating Community" means any city or township in Anoka County, which has entered into a cooperation agreement which is identical to this Agreement. E. "CDBG Program" means federal program instituted under 42 U.S.C. 5301, et seq. as amended. F. "HOME Investment Partnership Program" means the federal program instituted under Title II of the Cranston-Gonzales National Affordable Housing Act, 42 U.S.C. 12701 et seq. as amended The definitions contained in 42 U.S.C. 5302 of the Act and 24 CFR 570.3 of the Regulations are incorporated herein by reference and made a part hereof. SECTION II. PURPOSE The Cooperating Community and the County have determined that it is desirable and in the interests of its citizens that the County qualifies as an urban county within the provisions of the Act. This Agreement contemplates that identical agreements will be executed between the County and other cities and townships within the County, thus enabling the County to qualify under the Act. The purpose of this Agreement is to authorize the County to participate with the Cooperating Community in undertaking, or to assist in undertaking, essential community development and housing assistance activities pursuant to the CDBG Entitlement Program and the HOME Investment Partnership Program. SECTION III. TERM OF AGREEEMNT This Agreement shall be in effect upon execution and terminate no sooner than the end of the third program year covered by the application for the basic grant amount and approved after the effective date. This Agreement shall be effective for the federal fiscal years 2008 through 2010. 2 This Agreement shall renew automatically for subsequent three-year program periods, unless written notice of termination to be effective at the end of the current three-year program period is given by the Cooperating Community to the County following the same schedule as the opt-out notification requirements as established by HUD. A copy of all notices must be sent to the HUD Field Office. Since this Agreement has an automatic renewal provision, the County shall, prior to the "opt-out" date, provide written notification to the Cooperating Community of the community's rights under this "opt-out" provision. The County shall have the right to "o.pt-out" of future renewal of the Agreement. The parties agree that this Agreement will remain in effect until CDBG and HOME hivestment Partnership Program funds and program income received for acti'vities carried out during the three-year qualification period (and any successive periods under the aritomatic renewal provision) are expended and the funded activities completed, and that the County and Cooperating Community cannot terminate or withdraw from tis Agreement during this period. Notwithstanding any other provision of this Agreement, this Agreement shall be terminated at the end of any program year during which HUD withdraws its designation of Anoka County as an urban corinty under the Act. SECTION IV. METHOD The Cooperating Community and County hereby agree that it will cooperate to undertake or assist in undertaking community renewal and lower income housing assistance activities, specifically urban renewal and publicly assisted housing. The County shall prepare and submit to HUD and appropriate reviewing agencies, all necessary applications for basic grant amount under the CDBG and HOME Investment Partnership Program requirements. In making the application, the County shall address the goals and needs of County as developed in meetings between the Community, its citizens and the County, and also addressing the Act and other relevant Minnesota and/or federal statutes and regulations. The parties agree to cooperate fully in establishing priorities and in preparation of the application for a basic grant amount. The Cooperating Community and the County agree that the County shall establish a reasonable time schedule for the development of the grant application. It is anticipated by the parties that the party ultimately implementing a project funded by monies received from the grant may be either the Cooperating Community or the County. The determination of which party will implement the project will be made by the parties after consideration of the nature and scope of the project, and the ability of each party to undertake the project, though it is understood by the Cooperating Community that the County shall have final responsibility for selecting projects and filing annual grant requests. The County is hereby authorized to distribute to the Cooperating Community such funds as are determined appropriate for the Community to use in implementing a project and the County is hereby authorized to undertake projects within the Cooperating Cornrnunity as are determined appropriate for the County to undertake. 3 SECTION V. SPECIAL PROVISIONS A. Nothing in this Agreement is intended to prevent or otherwise modify or abrogate the right of the Cooperating Cornrnunity or the County to submit individual applications for discretionary funds in the event County does not receive designation as an urban county entity under the Act. B. The Cooperating Community and the County mutually agree to indemnify and hold harmless each other from any claims, losses, costs, expenses, or damages resulting from the acts of omissions of their respective officers, agents, and employees relating to activities conducted by either under this Agreement, the Act or the Regulations. C. In the event that there is a revision of the Act and/or Regulation which would make this Agreement out of compliance with the Act or Regulations, both parties will review this Agreement and renegotiate those items necessary to bring the Agreement into compliance. D. All funds received by the County under the Act shall be deposited in the County treasury. E. The Cooperating Cornrnunity and the County shall maintain financial and other records and accounts in accordance with requirements of the Act and Regulations. Such records and accounts will be in such form as to permit reports required of the County to be prepared therefrom and to permit the tracing of grant funds and program income to final expenditure. F. The Cooperating Community and the County agree to make available all records and accounts with respect to matters covered by this Agreement at all reasonable times to their respective personnel and duly authorized federal officials. Such records shall be retained as provided by law, but in no event for a period of less than (5) five years from the date of completion of any activity fiinded under the Act or less than (5) five years from the last receipt of program income resulting from activity implementation. The County shall perform all audits of the basic grant amounts and resulting program income as required under the Act and Regulation. G. The county, as the CDBG grant recipient, either for the urban county or a joint recipient (Metropolitan City/Urban County Joint Recipients) has full responsibility for the execution of the community development program, for following its Consolidated Plan, and for meeting the requirements of other applicable laws (e.g., National Environmental Policy Act, Uniform Relocation Act, Fair Housing Act, Title VI of the Civil Rights Act of 1964, Section 504 of the Rehabilitation Act of 1973, Section 109 of Title I of the Housing and Cornrnunity Development Act of 1974, the Americans with Disabilities Act of 1990, and for affirmatively furthering fair housing). The Counties responsibilities must include these functions even where, as a matter of administrative convenience or State law, the county permits the participation units of general local government to carry out essential community development and housing assistance activities. The county will be held accountable for the accomplisbtnent of the community development progr:un, for 4 following the Consolidated Plan, and for ensuring that actions necessary for such accomplishments are taken by cooperating units of general local governrnent. H. The parties agree to take all actions necessary to assure compliance with the urban county's certification required by section 104(b) of Title 1 of the Housing and Community Development Act of 1974, as amended including Title VI of the Civil Rights Act of 1964, the FairHousing Act, section 109 of Title I of the Housing and Community Development Act of 1974, and other applicable laws. The agreement also prohibits urban county funding for activities in, or in support of, any cooperating unit of general local government that does not affirmatively further fair housing within its own jurisdiction or that impedes the county's action to comply with the county's fair housing certification. This provision is required because noncompliance by a unit of general local government included in an urban county may constitute noncompliance by the grantee (i.e., the entire urban county) that can, in turn, provide cause for funding sanctions or other remedial actions by the department. I. The parties further agree that pursuant to 24 CFR 570.501 (b), the Cooperating Community is subject to the same requirements applicable to subrecipients, including a written agreement as set forth in 24 CFR 570.503. Such agreements are only entered into when a Cooperating Community chooses to propose a project and actually will receive funds from the County's entitlement allocation. J. The parties further agree that the cooperating Community has adopted and is enforcing: 1. A policy prohibiting the use of excessive force by law enforcement agencies within its jurisdiction against any individual engaged in non-violent civil rights demonstrations; and 2. A policy of enforcing applicable State and local laws against physically barring entrance to or exit from a facility or location which is the subject of such non- violent civil rights demonstrations within jurisdictions. K. The Cooperating Community acknowledges that by executing this A(,reement it may not apply for grants from appropriations under the Small Cities or State Community Development Block Grant PrograIn5 for. fiscal years during the period in which it participates in the County's CDBG Pro:am. The Cooperating Community further acknowledges that during the period irx which it participates in the County's CDBG Program it may only participate in the HOME Program (24 USC 12701 et seq. and regulations promulgated thereto) through the= County and is precluded from forming a HOME Consortium for paiticipation in the HOME Program, except through the County. 5 IN WITNESS WHEREOF, the parties have carised this Agreement to be duly executed. COUNTY OF ANOKA ST ATE OF MINNESOT A Dennis D. B TCherrya"'L"noo/hns,Onun7d Commissioners Anoka County tor APPROVED AS TO FORM Anthony C. P ASSiStant Anoka County Attorney [5-Tvt Date CITY OF LINO LAKES ST ATE OF MINNESOTA BY: Its: Date: Date: ' ILL ll-Ool I hereby certify that the provisions of this agreement are fully authorized under state and local law and that tlie agreement provides full legal authority of the County. AU,Ht6 M C/ . P) it'!Arifhffny 4umbo ASSistant Aa County Attomey. 6 1 CITY COUNCIL AGENDA ITEM 6B STAFF ORIGINATOR: Diane Hankee PE, City Engineer MEETING DATE: June 24, 2019 TOPIC: PUBLIC HEARING: Consider 1st Reading of Ordinance No. 08-19, Vacating Right-of-Way, Drainage, and Utility Easement, Saddle Club 4th Addition VOTE REQUIRED: 4/5 INTRODUCTION Staff is requesting City Council consideration of the 1st Reading of Ordinance No. 08-19, vacating right-of-way, drainage, and utility easements lying over, under and across the area described as: “The South 550.00 feet of the East 330.00 feet of the Southwest Quarter of the Southwest Quarter of Section 28, Township 31, Range 22, Anoka County, Minnesota.” BACKGROUND Saddle Club is a PUD residential subdivision located southeast of the intersection of Old Birch Street and Pheasant Run South. The applicant is requesting this right-of-way, drainage, and utility easements be vacated to remove underlying easements concurrent to the Saddle Club 4th Addition final plat. Revised easements will be re-dedicated on the final plat of Saddle Club 4th Addition. The City Council has approved similar vacations with previous final plats with past developments. The Drainage and Utility Easement Vacation Description Sketch prepared by Plowe on February 26, 2019 detailing the proposed drainage and utility area to be vacated and the proposed location of the deck is enclosed. The second reading of the ordinance is scheduled for July 8 , 2019. RECOMMENDATION Staff is recommending approval of the 1st Reading of Ordinance No. 08-19 Vacating Right-of- Way, Drainage, and Utility Easements, Saddle Club 4th Addition. ATTACHMENTS 1. Ordinance No. 08-19 2. Drainage and Utility Easement Vacation Description Sketch 1 1st Reading: 6/24/2019 Publication: 2nd Reading: 7/8/2019 Effective: CITY OF LINO LAKES ORDINANCE NO. 08-19 ORDINANCE VACATING RIGHT-OF-WAY, DRAINAGE, AND UTILITY EASEMENT (Saddle Club Fourth Addition) The City Council of Lino Lakes ordains: Section 1: Findings of Fact 1. The City Council of Lino Lakes has determined to vacate the Right-of-Way, Drainage and Utility Easement dedicated over, under, and across the area described as: “The South 550.00 feet of the East 330.00 feet of the Southwest Quarter of the Southwest Quarter of Section 28, Township 31, Range 22, Anoka County, Minnesota.”; Within the Saddle Club Fourth Addition, as shown in Exhibit A; and 2. A public hearing was held on June 24, 2019 before the City Council in the City Hall Council Chambers after due published and posted notice had been given and reasonable attempts were made to give personal notice to all affected property owners, and all persons interested were given an opportunity to be heard; and 3. It appears to be in the best interest of the City to vacate such right-of-way, drainage, and utility easements; and 4. The Right-of-Way, Drainage, and Utility Easement Vacation shall be recorded through Anoka County Recorder’s Office; and 5. Four-fifths of all members of the City Council concur with this ordinance. Section 2: Easement Vacated The Right-of-Way, Drainage and Utility Easement described herein is hereby vacated. 2 Section 3: Effect This ordinance shall be in force and effect from and after its passage and publication according to the Lino Lakes City Charter and upon filing of the final plat for Saddle Club Fourth Addition. Adopted by the Lino Lakes City Council this 24th day of June, 2019. The motion for the adoption of the foregoing ordinance was introduced by Council Member_____________and was duly seconded by Council Member ___________ and upon vote being taken thereon, the following voted in favor thereof: The following voted against same: ____________________________ Jeff Reinert, Mayor ATTEST: ________________________ Julianne Bartell, City Clerk CITY COUNCIL AGENDA ITEM 6C STAFF ORIGINATOR: Michael Grochala, Community Development Director MEETING DATE: June 24, 2019 TOPIC: Consider Resolution No. 19-81, Approving Land Acquisition from Estate of Margaret Carpenter (7685 Lake Drive) VOTE REQUIRED: 3/5 INTRODUCTION Staff is requesting City Council approval of the land purchase of property located at 7685 Lake Drive. BACKGROUND In 2018 the City was contacted by the Estate of Margaret A. Carpenter regarding possible acquisition of the property located at 7685 Lake Drive. The property is located at the intersection of Lake Drive and Marketplace Drive. Following recommendation by the City’s Economic Development Advisory Committee the Council authorized staff to negotiate a purchase of the property. While no project is currently proposed, acquisition of the property will assist with future road extension and redevelopment in the area. Staff has finalized the purchase agreement with the Carpenter Estate to acquire the property in the amount of $210,000. Funding for the project will be provided from the Economic Development fund and Municipal State Aid Street proceeds. RECOMMENDATION Staff is recommending approval of Resolution No. 19-81. ATTACHMENTS 1. Location Map 2. Resolution No. 19-81. 3. Purchase Agreement with Estate of Margaret Carpenter General Location Map Legend Address Labels September 26, 2018 Map Powered by DataLink from WSB & Associates 1 in = 376 ft ± CITY OF LINO LAKES RESOLUTION NO. 19-81 APPROVING LAND ACQUISITION FROM COMCAST CCH SUBSIDIARY HOLDINGS, INC., WHEREAS, the City was approached by the Estate of Margaret A. Carpenter to acquire certain real property located at located at 7685 Lake Drive; and WHEREAS, the City has determined it to be in the best interest of the public to purchase the property for future road and redevelopment purposes; and WHEREAS, the City has reached an agreement with the Estate of Margaret A. Carpenter to acquire said property. NOW, THEREFORE BE IT RESOLVED by The City Council of The City of Lino Lakes, that the City approves the purchase of the property from the Estate of Margaret A. Carpenter. The Mayor and City Clerk are hereby authorized and directed to execute a purchase agreement and other documents as may be necessary in order to purchase the Property. Adopted by the Council of the City of Lino Lakes this 24th day of June, 2019. The motion for the adoption of the foregoing resolution was introduced by Council Member _______________and was duly seconded by Council Member ________________ and upon vote being taken thereon, the following voted in favor thereof: The following voted against same: _______________________________ Jeff Reinert, Mayor ATTEST: ________________________ Julianne Bartell, City Clerk CITY COUNCIL AGENDA ITEM 6D STAFF ORIGINATOR: Diane Hankee PE, City Engineer MEETING DATE: June 24, 2019 TOPIC: Consider Resolution No. 19-80, Approving Change Order No. 1, 2019 Mill and Overlay Project VOTE REQUIRED: 3/5 INTRODUCTION Staff is requesting council approval of Change Order No. 1 for the 2019 Mill and Overlay Project. BACKGROUND On April 8, 2019, the City Council awarded the bid for the 2019 Mill and Overlay Project to North Valley, Inc. in the amount of $546,809.69. Construction of the project began in early May. Shortly after the bituminous base course was installed, it was discovered that two watermain services and a main line valve began to leak. Observations during the watermain repairs identified corroded bolts at the gate valves. Final paving has been delayed due to the watermain concerns within the project area. At the June 3, 2019, work session WSB presented a memorandum detailing the conclusions from the watermain repairs and recommendations for moving forward with the project. It is recommended to replace the gate valve bolts and to adjust the paving specification on vibratory equipment to reduce the impact on the service connections. During the work on the gate valves, we will evaluate the ability to achieve compaction due to water table and soil type, as it relates to the potential settlement. We will then make a recommendation to pave the wear course (second lift of bituminous) towards mid-November, 2019, or to postpone into 2020 to allow additional time for possible settlement. Roadway prep work would be completed to prepare the site for the winter plow season if postponed. Change Order No. 1 to replace the bolts on the gate valves and appurtenant work is in the amount of $149,100.00. The bolt replacement on this project will be funded through the City’s Utility Fund. The 2019 Mill and Overlay Project contract with North Valley, Inc. with Change Order No. 1 would be increased to $695,909.69. WSB and Associates has submitted a proposal to complete the construction services for the gate valve bolt replacement and appurtenant work in the amount of $11,064.00. RECOMMENDATION Staff is recommending approval of Resolution No. 19-80 for Change Order No. 1 in the amount of $149,100.00 for the 2019 Mill and Overlay Project and construction services in the amount of $11,064.00. ATTACHMENTS 1. Resolution 19-80 2. Change Order No.1 3. Construction Services Budget CITY OF LINO LAKES RESOLUTION NO. 19-80 RESOLUTION APPROVING CHANGE ORDER NO. 1 2019 MILL AND OVERLAY PROJECT WHEREAS, pursuant to resolution 19-43 of the Council adopted on April 8, 2019, awarding the contract for the 2019 Mill and Overlay Project to North Valley, Inc.; and WHEREAS, a complete summary of costs are detailed in Change Order No. 1; NOW, THEREFORE, BE IT RESOLVED by the City Council of Lino Lakes, Minnesota that Change Order No. 1 is approved in the amount of $149,100.00, and the construction services in the amount of $11,064.00. BE IT FURTHER RESOLVED Adopted by the Council of the City of Lino Lakes this 24th day of June, 2019. The motion for the adoption of the foregoing resolution was introduced by Council Member _______________and was duly seconded by Council Member ________________ and upon vote being taken thereon, the following voted in favor thereof: The following voted against same: _______________________________ Jeff Reinert, Mayor ATTEST: ________________________ Julianne Bartell, City Clerk 2019 MILL AND OVERLAY PROJECT CITY OF LINO LAKES, MN WSB PROJECT NO. R-012972-000 OWNER: CITY OF LINO LAKES 600 TOWN CENTER PARKWAY LINO LAKES, MN 55014 YOU ARE DIRECTED TO MAKE THE FOLLOWING CHANGES IN THE CONTRACT DOCUMENT DESCRIPTION: CHANGE IN CONTRACT PRICE: CHANGE IN CONTRACT TIME: ORIGINAL CONTRACT PRICE: $546,809.69 ORIGINAL CONTRACT TIME: 10/25/2019 PREVIOUS CHANGE ORDERS: NO. 1 NET CHANGE FROM PREVIOUS CHANGE ORDERS: NONE CONTRACT PRICE PRIOR TO THIS CHANGE ORDER: $546,809.69 CONTRACT TIME PRIOR TO THIS CHANGE ORDER: 10/25/2019 NET INCREASE OF THIS CHANGE ORDER:$149,100.00 NET INCREASE OF CHANGE ORDER: NONE CONTRACT PRICE WITH ALL APPROVED CHANGE ORDERS: $695,909.69 CONTRACT TIME WITH APPROVED CHANGE ORDERS 10/25/2019 RECOMMENDED BY: APPROVED BY: ED YOUNGQUIST, PROJECT MANAGER WSB ENGINEER APPROVED BY: CITY ENGINEER DATE NORTH VALLEY, INC. CHANGE ORDER NO. 1 June 21, 2019 DATE CONTRACTOR SIGNATURE WATERMAIN REPAIR. BOLT REPLACEMENT ON EXISTING MAIN LINE VALVES WITHIN PROJECT AREA. IT IS UNDERSTOOD THAT THIS CHANGE ORDER INCLUDES ALL ADDITIONAL COSTS AND TIME EXTENSIONS WHICH ARE IN ANY WAY, SHAPE, OR FORM ASSOCIATED WITH THE WORK ELEMENTS DESCRIBED ABOVE. CITY ADMINISTRATOR CONTRACTOR CONTRACTOR: NORTH VALLEY, INC. 20015 IGUANA STREET NW NOWTHEN, MN 55330 Page 1 of 2 K:\012972-000\Admin\Construction Admin\Change Order\ 012972-000CO 1 2019 MILL AND OVERLAY PROJECT CITY OF LINO LAKES, MN WSB PROJECT NO. R-012972-000 Item No. Mat. No. Description Qty Unit Price Extended Amount 62 2504.602 WATER VALVE REPAIR 21 EACH 7,100.00$ $ 149,100.00 $149,100.00 Item No. Mat. No. Description Qty Unit Price Extended Amount $0.00 TOTAL ADJUSTMENT TO ORIGINAL CONTRACT AMOUNT $149,100.00 TOTAL DELETED ITEMS CHANGE ORDER NO. 1 CHANGE ORDER NO. 1 ADDED ITEMS TOTAL ADDED ITEMS CHANGE ORDER NO. 1 June 21, 2019 DELETED ITEMS Page 2 of 2 K:\012972-000\Admin\Construction Admin\Change Order\ 012972-000CO 1 Detail ADMIN Office TechnicianCONST Instpector/ObserverMAT Testing LeadMAT Testing TechnicianMUNI Project EngineerMUNI Graduate EngineerMUNI Specialist/Project ManagerTotal HoursTotal CostStaff/Resource Name KP N/a CO IV EJ N/a Intern DH KG EY Hourly Rates 90.00$ $104 $91 $56 $156 $98 $136 TASKS Start Date Finish Date Project Management 2 8 10 $1,400 Design 2 2 $272 Drawing & Layouts 2 2 4 $468 Specifications & Bidding 2 1 2 5 $608 Cost Take-off 2 2 $272 Meetings 2 8 10 $1,400 Construction Inspection 4 50 4 8 2 68 $6,644 101 $11,064 6 50 4 8 5 2 26 KP N/a CO IV EJ DH KG EY $90.00 $104.00 $91.00 $56.00 $156.00 $98.00 $136.00 $540.00 $5,200.00 $364.00 $448.00 $780.00 $196.00 $3,536.00 $11,064.00 Total Hours Staff Name/Resource Name Hourly Rates Total Costs Expenses Exhibit A - WSB & Assoc. Inc. 2019 Mill and Overlay Project- Gate Valve Repair R-012972-000 Administrativ e MunicipalMaterials City of Lino Lakes Totals = TotalConstruction Services $0 $0 $0 $0 $0 $11,064 Total Expenses Subconsultant Fee (1) Subconsultant Fee (2) Subconsultant Fee (3) Total Subconsultant Fee $0.00 $0.00 Total Project Cost Misc Expenses SWS – Item 1 SPECIAL WORK SESSION STAFF REPORT Special Work Session Item No. 1 Date: June 24, 2019 To: City Council From: Michael Grochala, Community Development Director Re: Lyngblomsten – Draft TIF Plan and Contract for Private Development Background At the May 6, 2019 City Council work session staff received direction to prepare the tax increment financing plan, associated contract for private development and schedule the required hearings. Based on the District Framework, discussed at the meeting, the reimbursable costs will not exceed $3,600,000. Council requested that further evaluation include methods to reduce the duration of the district to the extent possible. Staff has been working with Baker Tilly, city financial consultant, and Kennedy and Graven, city development counsel, to draft the plan and contract that stipulates the minimum improvements, developer requirements and potential reductions in increment and/or city reimbursement. Mikaela Huot of Baker Tilly has provided an updated memo regarding the proposed use of tax increment financing and key elements of the contract. Also enclosed is a memo from Julie Eddington of Kennedy and Graven regarding eligible expenditures and the recommended structure of TIF Plan and contract to meet the needs of the project. Ms. Huot and Ms. Eddington will be present at the meeting review the memos and recommendations. The Lyngblomsten development team is still reviewing the documents and there may be some minor revisions prior to final adoption. Staff will be discussing the proposal with EDAC on June 27, 2019. The public hearing, and consideration of the TIF plan is scheduled for July 8, 2019. The EDA will also hold a meeting on July 8, 2019 for both the TIF Plan and the Contract for Private Development. This will allow for discussion on the 24th. A follow up review and discussion on any modifications or changes at the July 1, 2019 work session prior to EDA and Council consideration on the 8th. Requested Council Direction Discussion and comment only. Attachments 1. BakerTilly Memo, dated June 19, 2019 2. Kennedy & Graven Memo dated June 13, 2019 3. Draft TIF Plan 4. Draft Contract for Private Development The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. Baker Tilly Virchow Krause, LLP trading as Baker Tilly is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. © 2018 Baker Tilly Virchow Krause, LLP Memo To: Michael Grochala, Community Development Director, City of Lino Lakes Sarah Cotton, Finance Director, City of Lino Lakes From: Mikaela Huot, Director Date: June 24, 2019 Subject: Application Review for Financial Assistance through Tax Increment Financing (TIF) for Proposed Lyngblomsten Senior Care Campus Housing Project and Recommendation for District Framework Background The City of Lino Lakes received an application for financial assistance through tax increment financing (TIF) to assist with financing a portion of the extraordinary development costs related to the construction of a senior care building with approximately 143 independent and assisted living units and approximately 56 skilled care units with 20 detached rental town homes. The project also includes acquisition of several properties on the corner of County Road J and CSAH 49 for demolition and installation of new infrastructure, and where the senior housing development will not occur but will present future development opportunities following redevelopment. The creation of a tax increment financing (housing) district would facilitate the development with the requirement that at least 20% of the units would be occupied by individuals at 50% of the area median income. We have reviewed the application and performed financial analysis for the project, including numerous discussions with the City Council at work sessions to review the financing components of this project and to understand the developer’s request and need for financial assistance. The purpose of this memorandum is to provide an overview of the anticipated financing package to the developer following those discussions, as well as a summary of the draft Tax Increment Financing (TIF) plan or the proposed Tax Increment Financing (Housing) District No. 1-13. Proposed Financial Assistance to Developer The application for financial assistance as submitted by the developer included $5.3 million over 15 years for acquisition and development of the project site, followed by subsequent construction of a senior care campus. Through submission of the tax increment financing application and supporting financial information, the developer indicated that the project as proposed would not occur on the current site without financial assistance from the City due to extraordinary costs associated with acquisition of the additional properties and site development/infrastructure improvements. Following thorough review of the project financing components, we have determined that tax increment financing assistance is necessary for the project to proceed as proposed. The developer is not able to obtain the maximum financing amount without the additional revenue stream provided through tax increment necessary to finance the entire project cost and the projected returns are not anticipated to be feasible. The work sessions provided framework to us and City staff that the goal of the City Council was to reduce the duration of assistance to as short of a term as possible. We have been working with City staff following those The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. Baker Tilly Virchow Krause, LLP trading as Baker Tilly is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. © 2018 Baker Tilly Virchow Krause, LLP meetings to diligently meet that request. The following table provides a summary of the proposed financing package to the developer. Type of TIF Eligible Cost Financial Assistance Package Initial request $5,300,000 Reduction of request based on financial review $(1,400,000) Reduction based on fee credits $(300,000) Net Assistance through TIF (est. 9.5 years) $3,600,000 Pooled TIF from Housing District 1-5 $382,000 Proposed TIF Assistance to Developer from TIF 1-13 (New Housing TIF District) over 8.5 years $3,218,000 We were able to reduce the original request of assistance from 15 years to lesser term by lowering the total reimbursable amount of eligible costs. We further reduced the term through the provision of City fee credits, as standard practice. And lastly, by including the value of the town homes (additional $6.0M) and utilizing pooled TIF dollars already on-hand resulted in a further reduced term estimated to be 8.5 years. In summary the following steps were followed to meet the Council directives: 1. Review and application of fee credits through City policy 2. Including town homes in boundaries of TIF District 3. Use of pooled TIF from existing Housing District 1-5 1. Review and application of fee credits Using information submitted by the developer in the development application, City staff was able to determine the estimated fee credit amount that is consistent with City policy. The City will provide credit in the amount of approximately $300,000 to the developer for park dedication and trunk utility fees for work on public trail and trunk utility oversizing improvements. This number is an estimate and may change based on actual improvements and contract costs. 2) Including town homes in boundaries of TIF District At the May 6 City Council work session, there was a request to include the town home development within the boundaries of the TIF district to increase the projected revenues and ultimately result in a reduced term of assistance. The total estimated value of the taxable portion as provided by the County for the senior care building is approximately $22.9M. The preliminary value estimates for the town homes is about $300,000/unit resulting in an additional $6.0M of value. This provides more revenues in the TIF District as it captures all incremental taxes of the taxing entities, as opposed to the City’s share only should the town homes not be included in the TIF District and go on the general tax rolls. The inclusion results in one less year of needed tax increment assistance reducing the term from an original 10.5 years to 9.5 years to meet the recommended total of $3.6M. Use of pooled TIF from existing Housing District 1-5 We did additional due diligence to understand potential alternate funding sources that may be available to reduce the term of the TIF District and determined the City has existing funds from its’ Housing TIF District No. 1-5 (Willow Ponds). The available amount is approximately $382,000. The funds from TIF 1-5 may only be used on other eligible affordable housing projects within the City. If the funds are not used, they will be redistributed to the County and the city could expect to receive only its share of the total (approximately 1/3). By using these funds for the proposed project, the amount of TIF from the The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. Baker Tilly Virchow Krause, LLP trading as Baker Tilly is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. © 2018 Baker Tilly Virchow Krause, LLP new housing district is further reduced to $3.218M and the term of assistance is projected to be a maximum of 8.5 years. Tax Increment Financing Plan Included with the packet is the draft Tax Increment Financing Plan for the proposed Tax Increment Financing (Housing) District No. 1-13. Adoption of the TIF Plan for the TIF District will provide the City with the authority to use tax increment revenues for specific eligible projects related to the housing project. The main components of the TIF Plan include the following: Public purpose o Implementation of approximately 200 senior housing units o Mix of independent and assisted living with memory care and detached town homes o All rental units Qualification as housing TIF District o At least 20% of the units will be occupied by individuals/persons at 50% of area median income o Required for term of assistance Term of district o Estimated maximum 8.5 years o May be less with future value growth Boundaries of proposed district o 1 parcel with parcel id 31-31-22-43-0018 o Will be split and portion in district (removal of future commercial site) Budget of projected revenues and expenditures o Total estimated increment of $3,701,133 o Finance TIF note of $3,218,000 (subject to approval of pooling) o City withholding (admin or other) of $185,058 o May be surplus that would be returned to County o Based on 9 years (only collect full years) Estimated Impact to other taxing entities o County share of revenues: $1,089,103 o School share of revenues: $1,136,840 o City share of revenues: $1,321,21 Estimated total decrease in combined tax rate upon district decertification o (1.110%) The projected tax increment revenues that may be generated from the TIF District are shown in the chart below. Scenario 1 Total Number of Years 8.5 Total Estimated Taxable Value $28,991,000 Estimated Gross Annual Increment $411,237 Estimated Annual City Retained (5%) $20,562 Estimated Net Annual Increment (95%) $390,675 Total Gross Tax Increment $3,701,133 City Retainage (5%) $185,058 Net Amount Available (95%) $3,516,075 Maximum Amount to Developer $3,218,000 Estimated Surplus $298,075 The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. Baker Tilly Virchow Krause, LLP trading as Baker Tilly is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. © 2018 Baker Tilly Virchow Krause, LLP The boundaries of the TIF District only include the residential properties (senior building and detached townhomes) following a split of the existing property. The future restaurant and commercial pad sites are not within the boundaries of the TIF District. Therefore, the estimated new taxable values and projected tax increment revenues included in this analysis do not account for any taxes or increment from the future restaurant and commercial properties. Contract for Private Development As stated, adoption of the TIF Plan for the TIF District provides the City with the authority to use tax increment revenues for implementation of the proposed project but does not obligate the City to use tax increment. The Contract for Private Development provides the conditions both the City and developer must adhere to in order for the developer to receive tax increment financing as reimbursement for certain projects. A brief summary of the terms of the Contract are stated below: 1. Purchase of Land Developer to purchase 17 acres of property required for the Minimum Improvements (which includes future restaurant location. Purchase of two existing businesses Liquor store and Insurance, 49 Club property Developer shall also purchase house on County Road J west of the proposed development site. 2. Minimum Improvements Developer to build senior housing building with approximately 93 units of independent living, 50 units of assisted living, and 56 units of skilled nursing units. Developer to build 20 detached town homes adjacent to the senior housing building. Developer to build club house (TIF assistance will not be provided for club house). The skilled nursing units must consist of no more than 20% of the senior housing building. The assisted living units must have kitchen facilities and bathrooms. The assisted living units must not have 24-hour nursing care. Entry monument sign at SE quadrant of site with Provision for City of Lino Lakes entrance sign. 3. Public Improvements Developer to dedicate all required County Road right-of-way to public at no cost (to be dedicated on plat). Developer to construct County Road turn lane improvements, as shown on approved PUD development stage plan, subject to review and modification by City/County. Developer to arrange for relocation of Xcel power lines - relocated lines will be relocated underground. Developer to provide public utility easement for sanitary sewer, lift station, water main. Developer to provide County and City right of way over Parcel 5 as necessary for realignment of public road. Developer must construct public road (as shown on preliminary plat) to County Road J and put in all utilities and complete grading. 4. Declaration of Restrictive Covenants 20% of the town homes and 20% of the independent living and assisted living must be affordable to individuals or families earning 50% or less of area median income OR 40% of the town homes and 40% of the independent living and assisted living must be affordable to individuals or families earning 60% or less of area median income. Declaration of restrictive covenants effective until the pay go note is paid in full. 5. Reduction of TIF Note The principal amount of the TIF Note will be reduced by the amount of any additional trunk credits or fee reductions it receives from the City (not including credits already accounted for). Within sixty (60) days of the completion of the construction of the Senior Building, the Developer shall provide the Authority with final construction costs of the Senior Building (including related Infrastructure Improvements). If the final construction costs are less than estimated by the Developer at the time it The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. Baker Tilly Virchow Krause, LLP trading as Baker Tilly is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. © 2018 Baker Tilly Virchow Krause, LLP sought assistance from the Authority, the principal amount of the TIF Note shall be reduced by 5% of the difference between the initial estimated construction costs and the final construction costs. 6. Sale of Restaurant and Commercial Properties In the first eight years following the date of this Agreement, if the Developer sells the restaurant and commercial properties for more than five percent (5%) of the Developer’s cost for such parcel (including purchase price and all fees related to the purchase), the Developer shall pay to the Authority 45% of the profit obtained by Developer for such parcel. The cost of each parcel sold by the Developer shall be determined by dividing the gross land price paid by the Developer by the net developable acreage of each parcel to determine a per square foot cost and multiplying the square footage cost by the number of square feet sold. Thank you for the opportunity to be of assistance to the City of Lino Lakes. Please contact me at 651.223.3036 or 651.368.2533 or mikaela.huot@bakertilly.com with any questions or comments. Kennedy 470 U.S. Bank Plaza 200 South Sixth Street Minneapolis MN 55402 & Graven (612) 337-9300 telephone (612) 337-9310 fax http://www.kennedy-graven.com C H A R T E R E D MEMORANDUM TO: Michael Grochala Community Development Director, City of Lino Lakes FROM: Julie Eddington DATE: June 13, 2019 RE: Tax Increment Eligible Expenditures for Lyngblomsten Housing Development ________________________________________________________________________ Mike, Lyngblomsten Senior Housing, Inc. (the “Developer”) has proposed a housing development in the City of Lino Lakes which consists of (i) a senior rental housing facility containing at least 143 rental units, comprised of approximately 93 independent living units and approximately 50 assisted living units (the “Senior Building”); (ii) subject to the Developer obtaining the proper licenses from the State of Minnesota, a separate wing of the senior rental housing facility containing 56 units of skilled nursing units (iii) 20 detached townhomes; (iv) a clubhouse; and (v) various public infrastructure improvements (including dedication of land for such improvements). Lyngblomsten has requested tax increment assistance for the housing project. For housing tax increment districts, Minnesota law requires that: • No more than 20% of the square footage of buildings that receive assistance from tax increments may consist of commercial, retail, or other nonresidential uses; and • At least 20% of the units in buildings receiving tax increment assistance must be occupied by persons with incomes no greater than 50% of the area median gross income or at least 40% of the units in a building receiving tax increment assistance must be occupied by persons with incomes no greater than 60% of the area median gross income. It is our understanding that the City Council prefers that the Lyngblomsten Tax Increment District be limited in duration. The best way to accomplish the goals of the City Council is to include the 20 detached townhomes and the clubhouse in the tax increment district. However, the Senior Building is the only building that will meet the affordability standards required for housing tax increment districts. If the townhomes and clubhouse are included in the tax increment district, the City will need to make sure that no tax increment assistance benefits the townhomes or the clubhouse. Because the infrastructure improvements the Developer is required to construct will benefit the Senior Building, the townhomes, and the clubhouse, we advise the City to avoid providing tax increment assistance to the Developer for public infrastructure improvements. Instead, we suggest that the contract for private development between the Developer and the Lino Lakes Economic Development Authority require the Developer to construct the public infrastructure and dedicate land to the City and County for the public infrastructure but reimburse the Developer with tax increment for costs that only relate to the Senior Building. These costs include land acquisition for the Senior Building, demolition on the land for the Senior Building, the costs of constructing the underground parking related to the Senior Building, and the costs of constructing the Senior Building. Please contact me at your convenience with any questions regarding the foregoing. KENNEDY & GRAVEN, CHARTERED Julie Eddington City of Lino Lakes, Minnesota Lino Lakes Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing (Housing) District No. 1-13 (Lyngblomsten Senior Housing Project) Within Development District No. 1 Dated: June 24, 2019 Public Hearing Scheduled: July 8, 2019 Approval by City Council: July 8, 2019 Lino Lakes Economic Development Authority, Minnesota TABLE OF CONTENTS Section Page(s) A. Definitions ...................................................................................................................... 1 B. Statutory Authorization ................................................................................................... 1 C. Statement of Need and Public Purpose ......................................................................... 1 D. Statement of Objectives ................................................................................................. 1 E. Designation of Tax Increment Financing District as a Housing District .......................... 2 F. Duration of the TIF District ............................................................................................. 3 G. Property to be Included in the TIF District ...................................................................... 3 H. Property to be Acquired in the TIF District ..................................................................... 3 I. Specific Development Expected to Occur Within the TIF District ................................... 3 J. Findings and Need for Tax Increment Financing ........................................................... 4 K. Estimated Public Costs .................................................................................................. 4 L. Estimated Sources of Revenue ..................................................................................... 5 M. Estimated Amount of Bonded Indebtedness .................................................................. 5 N. Original Net Tax Capacity .............................................................................................. 5 O. Original Tax Capacity Rate ............................................................................................ 6 P. Projected Retained Captured Net Tax Capacity and Projected Tax Increment ............. 6 Q. Use of Tax Increment ..................................................................................................... 7 R. Excess Tax Increment ................................................................................................... 8 S. Tax Increment Pooling and the Five-Year Rule ............................................................. 8 T. Limitation on Administrative Expenses .......................................................................... 8 U. Limitation on Property Not Subject to Improvements - Four Year Rule ......................... 8 V. Estimated Impact on Other Taxing Jurisdictions ............................................................ 9 W. Prior Planned Improvements ......................................................................................... 9 X. Development Agreements ............................................................................................. 10 Y. Assessment Agreements ............................................................................................... 10 Z. Modifications of the Tax Increment Financing Plan ....................................................... 10 AA. Administration of the Tax Increment Financing Plan ...................................................... 10 AB. Filing TIF Plan, Financial Reporting and Disclosure Requirements ............................... 11 Map of the Tax Increment Financing District and Development District .............................................. EXHIBIT I TIF District Assumptions Report ......................................................................................................... EXHIBIT II Projected Tax Increment Report ......................................................................................................... EXHIBIT III Estimated Impact on Other Taxing Jurisdictions Report ..................................................................... EXHIBIT IV Lino Lakes Economic Development Authority, Minnesota BAKER TILLY Page 1 Section A Definitions The terms defined in this section have the meanings given herein, unless the context in which they are used indicates a different meaning: "Authority" means the Lino Lakes Economic Development Authority. “City" means the City of Lino Lakes, Minnesota; also referred to as a "Municipality". "City Council" means the City Council of the City; also referred to as the "Governing Body". "County" means Anoka County, Minnesota. "Development District" means Development District No. 1 in the City, which is described in the corresponding Development Program. "Development Program" means the Development Program for the Development District. "Project Area" means the geographic area of the Development District. "School District" means Independent School District No. 12, Minnesota. "State" means the State of Minnesota. "TIF Act" means Minnesota Statutes, Sections 469.174 through 469.1794, both inclusive. "TIF District" means Tax Increment Financing (Housing) District No. 1-13. "TIF Plan" means the tax increment financing plan for the TIF District (this document). Section B Statutory Authorization The Development District Act authorizes the City and Authority, upon certain public purpose findings by the City Council, to establish and designate development districts within the City and to develop and administer development programs therefore to meet the needs and accomplish the public purposes specified in Section C. In accordance with the purposes set forth in Section 469.124 of the Development District Act, the City Council and Authority have established the Development District comprising the area described in Section E and have adopted this Development Program. Section C Statement of Need and Public Purpose The City Council and Authority have determined that there is a need for the City to take certain actions they deem necessary in order to encourage, ensure and facilitate development and redevelopment by the private sector of underutilized, inappropriately used and unused land located within the corporate limits of the City. Such actions are necessary in order to provide additional employment opportunities for residents of the City and the surrounding area; to improve the tax base of the City, the County and the School District, thereby enabling them to better provide needed public services; and to improve the general economy of the City, the County and the State. Section D Statement of Objectives The Authority seeks to achieve the following objectives through the establishment of TIF District No. 1-13: Lino Lakes Economic Development Authority, Minnesota BAKER TILLY Page 2 1. redevelop blighted areas as identified 2. provide housing opportunities within the community 3. provide employment opportunities within the community. 4. improve the tax base of Lino Lakes and the general economy of the City and State; 5. implement relevant portions of the Comprehensive Plan. The Authority’s specific purpose in establishing TIF District No. 1-13 is to aid in the construction of a senior living care campus comprising of independent living, assisted living, memory care, skilled care and detached townhomes of which the intended age for occupants is 55+. The Authority intends to use increment generated by the new development to assist with financing a portion of the extraordinary onsite and offsite costs directly related to the senior care building including acquisition, underground and surface parking, streets, public utilities, and public improvements to gain access to the site. Section E Designation of Tax Increment Financing District as a Housing District Pursuant to the TIF Act, the City seeks to create Tax Increment Financing (Housing) District No. 1-13 and adopt a TIF Plan for the TIF District. The City will review the TIF Plan prior to City adoption. TIF District No. 1-13 is a housing district. Housing districts are a type of tax increment financing district that consist of a project intended for occupancy, in part, by persons or families of low and moderate income. Low and moderate income is defined in federal, state, and municipal legislation. A project does not qualify if more than 20% of the square footage of buildings that receive assistance from tax increments consist of commercial, retail or other nonresidential use. In addition, housing districts are subject to various income limitations and requirements for residential property. For owner occupied residential property, 95% of the housing units must be initially purchased and occupied by individuals whose family income is less than or equal to the income requirements for qualified mortgage bond projects under section 143(f) of the Internal Revenue Code. For residential rental property, the property must satisfy the income requirements for a qualified residential rental project as defined in section 142(d) of the Internal Revenue Code. The TIF District meets the above qualifications for these reasons: 1. The planned improvements consist of the following: a. Approximately 150 total units, for which the following will apply: o 150-unit senior housing building with at least 20% (30) of the rental units will be occupied by persons with incomes no greater than 50% of county median income 2. At least 80% of the proposed development will be used for residential purposes. 3. The City will require in the development agreement that the income limitations for the rental units in the senior building will apply for the duration of the TIF District. Tax increments derived from a housing district must be used solely to finance the cost of housing projects as defined in section 469.174, subd. II and 469.176 of the TIF Act. The cost of public improvements directly related to the housing projects and the allocated administrative expenses of the City may be included in the cost of a housing project. The City anticipates using tax increment revenues to finance a portion of the extraordinary costs associated with providing the affordable housing units. Lino Lakes Economic Development Authority, Minnesota BAKER TILLY Page 3 Section F Duration of the TIF District Housing districts may remain in existence 25 years from the date of receipt of the first tax increment. Modifications of this plan (see Section Z) shall not extend these limitations. Pursuant to Minnesota Statutes, Section 469.175, subd. 1(b), the Authority specifies 2022 as the first year in which it elects to receive tax increment from the TIF District, which is no later than four years following the year of approval of the TIF District. Thus, the Authority may collect increment from the district through December 31, 2047; however, the Authority anticipates decertifying the TIF District as early as possible with a projected maximum term of 8.5 years. All tax increments from taxes payable in the year the TIF District is decertified shall be paid to the Authority. Section G Property to be Included in the TIF District The TIF District comprises 1 parcel that contains an underutilized building that will be demolished prior to development. The total area of the TIF district also includes adjacent streets and right-of-way located within the Project Area and are described below. A map showing the location of the TIF District is shown in Exhibit I. Parcel Number Legal Description 31-31-22-43-0018 LOT 4 AUDITORS SUBDIVISION NO 107 TOG/W ELY 50 FT OF LOT 22 SD AUD SUB LYG BET WLY EXTNS OF N & S LINES OF SD LOT 4 It is anticipated the parcel listed above will be replatted prior to development and a portion of the property will be included within the boundaries of the TIF District. The area encompassed by the TIF District shall also include all street or utility right-of-ways located upon or adjacent to the property described above, as illustrated in the boundary map included in Exhibit I. Section H Property to be Acquired in the TIF District The Authority may acquire and sell any or all of the property located within the TIF District; however, the Authority does not anticipate acquiring any such property at this time. Section I Specific Development Expected to Occur Within the TIF District The proposed project includes the development of property within the City to include a senior care campus with independent living, assisted living, memory care and skilled care units in one building with an underground parking structure. The skilled care portion of the building is a non-residential use that will be less than 20% of the square footage of the entire building. In addition to the senior building will be the construction of 20 detached townhomes and community clubhouse. In order to comply with Minnesota Statutes for designation of a Housing TIF District, at least 20% of the units will be restricted for persons or families with incomes at or below 50% of area median income. The Authority has identified significant costs related to construction of the project including acquisition, site development, infrastructure and public improvements that are deemed necessary for the project to proceed. The Authority anticipates providing financial assistance for the costs associated with the provision of affordable housing, acquisition and redevelopment of the entire property site and also to finance certain public improvements directly related to the housing development project. The Authority may also use available tax increment revenues to finance a portion of the eligible related administrative expenses. Demolition and subsequent construction of the new development on the project site is projected to start in late 2019. The project is expected to be fully constructed by December 31, 2020 and be 100% assessed and on the tax rolls as of January 2, 2021 for taxes payable 2022. Lino Lakes Economic Development Authority, Minnesota BAKER TILLY Page 4 Section J Findings and Need for Tax Increment Financing In establishing the TIF District, the City makes the following findings: (1) The TIF District qualifies as a housing district. See Section G of this document for the reasons and facts supporting this finding. (2) The proposed development, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future. The proposed development is expected to consist of approximately 150 senior housing units comprising of independent living, assisted living and memory care units. The City’s finding that the proposed development would be unlikely to occur solely through private investment within the reasonably foreseeable future is based on an analysis of the project pro forma and other materials submitted to the City by the developer. These documents have indicated that due to the significant costs associated with assembling the project site and construction of the senior housing project will result in returns that are not sufficient to support development, thereby making this housing development infeasible without public assistance. There are significant development costs associated with acquisition, demolition, installation of new infrastructure and structured parking. Therefore, the developer has indicated in communications with the City and submitted financial data that the development as proposed would not move forward without tax increment assistance. (3) The TIF Plan conforms to the general plan for development or redevelopment of the City as a whole. The reasons and facts supporting this finding are that the City Council of the City has found the TIF plan consistent with the general plan for development of the city as a whole and will generally complement and serve to implement policies adopted in the City's comprehensive plan. (4) The TIF Plan will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development of the Project Area by private enterprise. Through the implementation of the TIF Plan, the City will provide an impetus for a new senior care campus, of which a portion of the units will be affordable, which complements the overall housing needs of the City and helps support other private types of development by providing a range of housing opportunities for residents and workers within the City. Section K Estimated Public Costs The estimated public costs of the TIF District are listed below. Such costs are eligible for reimbursement from tax increments of the TIF District. Land/Building acquisition 888,000 Site Improvements/Preparation costs 2,330,000 Utilities 0 Other Housing Improvements 298,075 Administrative expenses 185,058 Subtotal Interest expenses 0 Total 3,701,133 Lino Lakes Economic Development Authority, Minnesota BAKER TILLY Page 5 The Authority anticipates using tax increment to the extent available to finance affordable housing costs, site improvement/preparation costs, public improvement infrastructure costs, land acquisition and related administrative expenses, and other TIF-eligible expenditures as deemed necessary and related to redevelopment of the project site. The Authority reserves the right to administratively adjust the amount of any of the items listed above or to incorporate additional eligible items, so long as the total estimated public cost ($3,701,133) is not increased. The Authority also reserves the right to fund any of the identified costs with any other legally available revenues, such as grants and/or loans, but anticipates that such costs will be primarily financed with tax increments. Section L Estimated Sources of Revenue Tax Increment revenue 3,701,133 Interest on invested funds 0 Land Sale Proceeds 0 Other 0 Total 3,701,133 The Authority anticipates providing financial assistance on a pay-as-you-go basis for acquisition and site improvement and infrastructure costs, as well as other TIF-eligible expenses related to the proposed development. As tax increments are collected from the TIF District in future years, a portion of these taxes will be used by the Authority to reimburse the developer/owner for public costs incurred (see Section K). The Authority reserves the right to finance any or all public costs of the TIF District using pay-as-you-go assistance, internal funding, general obligation or revenue debt, or any other financing mechanism authorized by law. The Authority also reserves the right to use other sources of revenue legally applicable to the Project Area to pay for such costs including, but not limited to, special assessments, utility revenues, federal or state funds, and investment income. Section M Estimated Amount of Bonded Indebtedness The maximum principal amount of bonds (as defined in the TIF Act) secured in whole or part with tax increment from the TIF District is $3,701,133. The Authority currently plans to finance the improvement costs in the form of a pay-as- you go revenue note but reserves the right to issue bonds in any form, including without limitation any interfund loan with interest not to exceed the maximum permitted under Section 469.178, subd. 7 of the TIF Act. Section N Original Net Tax Capacity The County Auditor shall certify the original net tax capacity of the TIF District. This value will be equal to the total net tax capacity of all property in the TIF District as certified by the State Commissioner of Revenue. For districts certified between January 1 and June 30, inclusive, this value is based on the previous assessment year. For districts certified between July 1 and December 31, inclusive, this value is based on the current assessment year. The Estimated Market Value of all property within the TIF District as of January 2, 2018, for taxes payable in 2019, is $908,400. Upon establishment of the district and subsequent reclassification of property, the estimated original net tax capacity of the TIF District is expected to be $11,355. This assumes the property is classified as residential rental with a classification rate of 1.25%. Each year the County Auditor shall certify the amount that the original net tax capacity has increased or decreased as a result of: (1) changes in the tax-exempt status of property; Lino Lakes Economic Development Authority, Minnesota BAKER TILLY Page 6 (2) reductions or enlargements of the geographic area of the TIF District; (3) changes due to stipulation agreements or abatements; or (4) changes in property classification rates. Section O Original Tax Capacity Rate The County Auditor shall also certify the original tax capacity rate of the TIF District. This rate shall be the sum of all local tax rates that apply to property in the TIF District. This rate shall be for the same taxes payable year as the original net tax capacity. In future years, the amount of tax increment generated by the TIF District will be calculated using the lesser of (a) the sum of the current local tax rates at that time or (b) the original tax capacity rate of the TIF District. The sum of all local tax rates that apply to property in the TIF District, for taxes levied in 2019 and payable in 2020, is not available at the time off drafting of this document. The County Auditor shall certify the amount for taxes payable 2020 as the original tax capacity rate of the TIF District once available assuming the request for certification is made between July 1, 2019 and June 30, 2020. For purposes of estimating the tax increment generated by the TIF District, the sum of the local tax rates for taxes levied in 2018 and payable in 2019, is 117.574% as shown below. 2018/2019 Taxing Jurisdiction Local Tax Rate City of Lino Lakes 41.817% Anoka County 34.473% ISD #12 35.984% Other 5.300% Total 117.574% Section P Projected Retained Captured Net Tax Capacity and Projected Tax Increment The Authority anticipates that the project will begin construction in fall 2019 and be 100% completed by December 31, 2020, creating a total tax capacity for TIF District No. 1-13 of $362,388 as of January 2, 2021. The captured tax capacity as of that date is estimated to be $351,033 and the first year of tax increment is estimated to be $390,675 payable in 2019. A complete schedule of estimated tax increment from the TIF District is shown in Exhibit III. The estimates shown in this TIF plan assume that residential rental class rates remain at 1.25% of the estimated taxable value and include 0% annual increases in market values. Each year the County Auditor shall determine the current net tax capacity of all property in the TIF District. To the extent that this total exceeds the original net tax capacity, the difference shall be known as the captured net tax capacity of the TIF District. The County Auditor shall certify to the City the amount of captured net tax capacity each year. The City may choose to retain any or all of this amount. It is the City's intention to retain 100% of the captured net tax capacity of the TIF District. Such amount shall be known as the retained captured net tax capacity of the TIF District. Lino Lakes Economic Development Authority, Minnesota BAKER TILLY Page 7 Exhibit II gives a listing of the various information and assumptions used in preparing a number of the exhibits contained in this TIF Plan, including Exhibit III which shows the projected tax increment generated over the anticipated life of the TIF District. Section Q Use of Tax Increment Each year the County Treasurer shall deduct 0.36% of the annual tax increment generated by the TIF District and pay such amount to the State's General Fund. Such amounts will be appropriated to the State Auditor for the cost of financial reporting and auditing of tax increment financing information throughout the state. Exhibit III shows the projected deduction for this purpose over the anticipated life of the TIF District. The City has determined that it will use 100% of the remaining tax increment generated by the TIF District for any of the following purposes: (1) Pay for the estimated public costs of the TIF District (see Section K) and County administrative costs associated with the TIF District (see Section T); (2) pay principal and interest on one or more pay-as-you-go notes, tax increment bonds or other bonds issued to finance the estimated public costs of the TIF District; (3) accumulate a reserve securing the payment of tax increment bonds or other bonds issued to finance the estimated public costs of the TIF District; (4) pay all or a portion of the county road costs as may be required by the County Board under M.S. Section 469.175, Subdivision 1a; or (5) return excess tax increments to the County Auditor for redistribution to the City, County and School District. Tax increments from property located in one county must be expended for the direct and primary benefit of a project located within that county, unless the county board involved waives this requirement. Tax increments shall not be used to circumvent levy limitations applicable to the City. Tax increment derived from the TIF District must be used solely to finance the cost of housing projects (including administrative expenses and public improvement costs) as defined in Section 469.174, Subdivision 11 of the Tax Increment Act and subject to the requirements set forth in Section 469.1761 of the Tax Increment Act. Tax increment shall not be used to finance the acquisition, construction, renovation, operation, or maintenance of a building to be used primarily and regularly for conducting the business of a municipality, county, school district, or any other local unit of government or the State or federal government. Further, tax increments may not be used to finance: a commons area used as a public park; facilities used for social or recreational purposes (whether public or private); or publicly-owned facilities used for conference purposes; provided that tax increment may be used for a privately owned conference facility, and for parking structures whether public or privately owned and whether or not they are ancillary to one of the otherwise prohibited uses described above. If there exists any type of agreement or arrangement providing for the developer, or other beneficiary of assistance, to repay all or a portion of the assistance that was paid or financed with tax increments, such payments shall be subject to all of the restrictions imposed on the use of tax increments. Assistance includes sale of property at less than the cost of acquisition or fair market value, grants, ground or other leases at less then fair market rent, interest rate subsidies, utility service connections, roads, or other similar assistance that would otherwise be paid for by the developer or beneficiary. Lino Lakes Economic Development Authority, Minnesota BAKER TILLY Page 8 Section R Excess Tax Increment Beginning with the sixth year after certification of the TIF District, any year in which the tax increments from the TIF District exceed the amount necessary to pay the estimated public costs authorized by the TIF Plan, the City shall use the excess tax increments to: (1) prepay any outstanding tax increment bonds; (2) discharge the pledge of tax increments thereof; (3) pay amounts into an escrow account dedicated to the payment of the tax increment bonds; or (4) return excess tax increments to the County Auditor for redistribution to the City, County and School District. The County Auditor must report to the Commissioner of Education the amount of any excess tax increment redistributed to the School District within 30 days of such redistribution. Section S Tax Increment Pooling and the Five-Year Rule As permitted under Minnesota Statutes, Section 469.1763, subdivision 2(b) and subdivision 3(a)(5), any expenditures of increment from the TIF District to pay the cost of a “housing project” as defined in Minnesota Statutes, Section 469.174, subd. 11 will be treated as an expenditure within the district for the purposes of the “pooling rules” and the “five-year rule”. The City does not currently anticipate that tax increments will be spent outside the TIF District (except allowable administrative expenses), but such expenditures are expressly authorized in this TIF Plan. The Authority does not expect that allowable pooling expenditures will be made outside of the TIF District, but such expenditures are expressly authorized in this TIF Plan. Section T Limitation on Administrative Expenses Administrative expenses are defined as all costs of the Authority other than: (1) amounts paid for the purchase of land; (2) amounts paid for materials and services, including architectural and engineering services directly connected with the proposed development within the TIF District; (3) relocation benefits paid to, or services provided for, persons or businesses residing or located within the TIF District; or (4) amounts used to pay interest on, fund a reserve for, or sell at a discount, tax increment bonds. Administrative expenses include amounts paid for services provided by bond counsel, fiscal consultants, planning or economic development consultants, and actual costs incurred by the County in administering the TIF District. Tax increments may be used to pay administrative expenses of the TIF District up to the lesser of (a) 10% of the total tax increment expenditures authorized by the TIF Plan or (b) 10% of the total tax increments received by the District. Section U Limitation on Property Not Subject to Improvements - Four Year Rule If after four years from certification of the TIF District no demolition, rehabilitation, renovation, or qualified improvement of an adjacent street has commenced on a parcel located within the TIF District, then that parcel shall be excluded from the TIF District and the original net tax capacity shall be adjusted accordingly. Qualified Lino Lakes Economic Development Authority, Minnesota BAKER TILLY Page 9 improvements of a street are limited to construction or opening of a new street, relocation of a street, or substantial reconstruction or rebuilding of an existing street. The City must submit to the County Auditor, by February 1 of the fifth year, evidence that the required activity has taken place for each parcel in the TIF District. If a parcel is excluded from the TIF District and the City or owner of the parcel subsequently commences any of the above activities, the City shall certify to the County Auditor that such activity has commenced, and the parcel shall once again be included in the TIF District. The County Auditor shall certify the net tax capacity of the parcel, as most recently certified by the Commissioner of Revenue, and add such amount to the original net tax capacity of the TIF District. Section V Estimated Impact on Other Taxing Jurisdictions Exhibit IV shows the estimated impact on other taxing jurisdictions if the maximum projected retained captured net tax capacity of the TIF District was hypothetically available to the other taxing jurisdictions. The City believes that there will be no adverse impact on other taxing jurisdictions during the life of the TIF District, since the proposed development would not have occurred without the establishment of the TIF District and the provision of public assistance. A positive impact on other taxing jurisdictions will occur when the TIF District is decertified and the development therein becomes part of the general tax base. The fiscal and economic implications of the proposed tax increment financing district, as pursuant to Minnesota Statutes, Section 469.175, Subdivision 2, are listed below. 1. The total amount of tax increment that will be generated over the life of the district is estimated to be $3,714,507. 2. To the extent the facility in the proposed TIF District generates any public cost impacts on city-provided services such as police and fire protection, public infrastructure, and borrowing costs attributable to the district, such costs will be levied upon the taxable net tax capacity of the City, excluding that portion captured by the District. The City does not plan to issue bonds in conjunction with this project. 3. The amount of tax increments over the life of the district that would be attributable to school district levies, assuming the school district’s share of the total local tax rate for all taxing jurisdictions remained the same, is estimated to be $1,136,840. 4. The amount of tax increments over the life of the district that would be attributable to county levies, assuming the county’s share of the total local tax rate for all taxing jurisdictions remained the same is estimated to be $1,089,103. 5. No additional information has been requested by the county or school district that would enable it to determine additional costs that will accrue to it due to the development proposed for the district. Section W Prior Planned Improvements The Authority shall accompany its request for certification to the County Auditor (or notice of district enlargement), with a listing of all properties within the TIF District for which building permits have been issued during the 18 months immediately preceding approval of the TIF Plan. The County Auditor shall increase the original net tax capacity of the TIF District by the net tax capacity of each improvement for which a building permit was issued. There have been no building permits issued in the last 18 months in conjunction with any of the properties within the TIF District. Lino Lakes Economic Development Authority, Minnesota BAKER TILLY Page 10 Section X Development Agreements If within a project containing a housing district, more than 10% of the acreage of the property to be acquired by the Authority is purchased with tax increment bonds proceeds (to which tax increment from the property is pledged), then prior to such acquisition, the Authority must enter into an agreement for the development of the property. Such agreement must provide recourse for the Authority should the development not be completed. The Authority anticipates entering into an agreement for development but does not anticipate acquiring any property located within the TIF District. Section Y Assessment Agreements The City may, upon entering into a development agreement, also enter into an assessment agreement with any person, which establishes a minimum market value of the land and improvements for each year during the life of the TIF District. The assessment agreement shall be presented to the County or City Assessor who shall review the plans and specifications for the improvements to be constructed, review the market value previously assigned to the land, and so long as the minimum market value contained in the assessment agreement appears to be an accurate estimate, shall certify the assessment agreement as reasonable. The assessment agreement shall be filed for record in the office of the County Recorder of each county where the property is located. Any modification or premature termination of this agreement must first be approved by the City, County and School District. The Authority anticipates entering into an assessment agreement. Section Z Modifications of the Tax Increment Financing Plan Any reduction or enlargement in the geographic area of the Project Area or the TIF District; increase in the amount of bonded indebtedness to be incurred; increase in the amount of capitalized interest; increase in that portion of the captured net tax capacity to be retained by the City; increase in the total estimated capital and administrative costs; or designation of additional property to be acquired by the City shall be approved only after satisfying all the necessary requirements for approval of the original TIF Plan. This paragraph does not apply if: (1) the only modification is elimination of parcels from the TIF District; and (2) the current net tax capacity of the parcels eliminated equals or exceeds the net tax capacity of those parcels in the TIF District's original net tax capacity, or the City agrees that the TIF District's original net tax capacity will be reduced by no more than the current net tax capacity of the parcels eliminated. The City must notify the County Auditor of any modification that reduces or enlarges the geographic area of the TIF District. The geographic area of the TIF District may be reduced but not enlarged after five years following the date of certification. Section AA Administration of the Tax Increment Financing Plan Upon adoption of the TIF Plan, the City shall submit a copy of such plan to the Minnesota Department of Revenue and the Office of the State Auditor. The City shall also request that the County Auditor certify the original net tax capacity and net tax capacity rate of the TIF District. To assist the County Auditor in this process, the City shall submit copies of the TIF Plan, the resolution establishing the TIF District and adopting the TIF Plan, and a listing of any prior planned improvements. The City shall also send the County Assessor any assessment agreement Lino Lakes Economic Development Authority, Minnesota BAKER TILLY Page 11 establishing the minimum market value of land and improvements in the TIF District and shall request that the County Assessor review and certify this assessment agreement as reasonable. The County shall distribute to the City the amount of tax increment as it becomes available. The amount of tax increment in any year represents the applicable property taxes generated by the retained captured net tax capacity of the TIF District. The amount of tax increment may change due to development anticipated by the TIF Plan, other development, inflation of property values, or changes in property classification rates or formulas. In administering and implementing the TIF Plan, the following actions should occur on an annual basis: (1) prior to July 1, the City shall notify the County Assessor of any new development that has occurred in the TIF District during the past year to ensure that the new value will be recorded in a timely manner. (2) if the County Auditor receives the request for certification of a new TIF District, or for modification of an existing TIF District, before July 1, the request shall be recognized in determining local tax rates for the current and subsequent levy years. Requests received on or after July 1 shall be used to determine local tax rates in subsequent years. (3) each year the County Auditor shall certify the amount of the original net tax capacity of the TIF District. The amount certified shall reflect any changes that occur as a result of the following: (a) the value of property that changes from tax-exempt to taxable shall be added to the original net tax capacity of the TIF District. The reverse shall also apply; (b) the original net tax capacity may be modified by any approved enlargement or reduction of the TIF District; (c) if the TIF District is classified as an economic development district, then the original net tax capacity shall be increased by the amount of the annual adjustment factor; and (d) if laws governing the classification of real property cause changes to the percentage of estimated market value to be applied for property tax purposes, then the resulting increase or decrease in net tax capacity shall be applied proportionately to the original net tax capacity and the retained captured net tax capacity of the TIF District. The County Auditor shall notify the City of all changes made to the original net tax capacity of the TIF District. Section AB Filing TIF Plan, Financial Reporting and Disclosure Requirements The City will comply with all reporting requirements for the TIF District under Minnesota Statutes, Section 469.175, subdivisions 5 and 6. Exhibit I BAKER TILLY Page 12 MAP OF PROPOSED TAX INCREMENT FINANCING (HOUSING) DISTRICT NO. 1-13 Exhibit II BAKER TILLY Page 13 Assumptions Report City of Lino Lakes, Minnesota Tax Increment Financing (Housing) District No. 1-13 Lyngblomsten Site: Senior Care Campus Draft TIF Plan Exhibits: Updated Revenue Projections with $28,991,000 new value Type of Tax Increment Financing District Housing Maximum Duration of TIF District 25 years from 1st increment Projected Certification Request Date 12/30/19 Decertification Date 12/31/30 (9 Years of Increment) 2017/2018 Base Estimated Market Value $908,400 Original Net Tax Capacity $11,355 Assessment/Collection Year 2019/2020 2020/2021 2021/2022 2022/2023 Base Estimated Market Value $908,400 $908,400 $908,400 $908,400 Estimated Increase in Value - New Construction 0 0 28,082,600 28,082,600 Total Estimated Market Value 908,400 908,400 28,991,000 28,991,000 Total Net Tax Capacity $11,355 $11,355 $362,388 $362,388 City of Lino Lakes 41.817% Anoka County 34.473% Centennial SD #12 35.984% Other 5.300% Local Tax Capacity Rate 117.5740% 2018/2019 Fiscal Disparities Contribution From TIF District 0.0000% Administrative Retainage Percent (maximum = 10%) 5.00% Pooling Percent 0.00% Present Value Date & Rate 02/01/20 5.00% PV Amount $2,726,536 Notes Projections assume no future changes to classification rates and current tax rates remain constant. Projections are based on final pay 2019 rates. Projections assume project 100% completed in 2020 Projections assume no market value inflation. Exhibit III BAKER TILLY Page 14 Projected Tax Increment ReportCity of Lino Lakes, MinnesotaTax Increment Financing (Housing) District No. 1-13Lyngblomsten Site: Senior Care CampusDraft TIF Plan Exhibits: Updated Revenue Projections with $28,991,000 new valueLess: Retained Times: Less: Less: P.V.Annual Total Total Original Captured Tax Annual State Aud. Subtotal CityAnnual AnnualPeriod Market Net Tax Net Tax Net Tax Capacity Gross Tax Deduction Net Tax Retainage Net Net Rev. ToEnding Value (1)Capacity (2)Capacity (3)Capacity Rate (4)Increment 0.360% Increment 5.00% Revenue 02/01/20(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) 5.00%12/31/19 908,400 11,355 11,355 0 117.574% 0 0 0 0 0 012/31/20 908,400 11,355 11,355 0 117.574% 0 0 0 0 0 012/31/21 908,400 11,355 11,355 0 117.574% 0 0 0 0 0 012/31/22 28,991,000 362,388 11,355 351,033 117.574% 412,723 1,486 411,237 20,562 390,675 * 337,48012/31/23 28,991,000 362,388 11,355 351,033 117.574% 412,723 1,486 411,237 20,562 390,675 321,40912/31/24 28,991,000 362,388 11,355 351,033 117.574% 412,723 1,486 411,237 20,562 390,675 306,10412/31/25 28,991,000 362,388 11,355 351,033 117.574% 412,723 1,486 411,237 20,562 390,675 291,52812/31/26 28,991,000 362,388 11,355 351,033 117.574% 412,723 1,486 411,237 20,562 390,675 277,64512/31/27 28,991,000 362,388 11,355 351,033 117.574% 412,723 1,486 411,237 20,562 390,675 264,42412/31/28 28,991,000 362,388 11,355 351,033 117.574% 412,723 1,486 411,237 20,562 390,675 251,83312/31/29 28,991,000 362,388 11,355 351,033 117.574% 412,723 1,486 411,237 20,562 390,675 239,84112/31/30 28,991,000 362,388 11,355 351,033 117.574% 412,723 1,486 411,237 20,562 390,675 228,420$3,714,507 $13,374 $3,701,133 $185,058 $3,516,075 $2,518,684* City has the election to opt delay receipt of first increment up to 4 years from approval date. Further discussions regarding first year collection(1) Total estimated market value based on information provided by County Assessor, subject to further review very preliminary and subject to further review. Includes 0% annual market value inflator(2) Total net tax capacity based on residential rental class rate of 1.25% (3) Original net tax capacity based on portion of existing land value for 1 parcel to be included in development (4) Total local tax capacity rate for taxes payable 2019 Exhibit IV BAKER TILLY Page 15 Estimated Impact on Other Taxing Jurisdictions ReportCity of Lino Lakes, MinnesotaTax Increment Financing (Housing) District No. 1-13Lyngblomsten Site: Senior Care CampusDraft TIF Plan Exhibits: Updated Revenue Projections with $28,991,000 new valueWithoutProject or TIF District With Project and TIF DistrictFinal Projected Hypothetical2018/2019 2018/2019 Retained New Hypothetical Hypothetical Tax GeneratedTaxable 2018/2019 Taxable Captured Taxable Adjusted Decrease In by RetainedTaxing Net Tax Local Net Tax Net Tax Net Tax Local Local CapturedJurisdiction Capacity (1) Tax Rate Capacity (1) + Capacity = Capacity Tax Rate (*) Tax Rate (*) N.T.C. (*)City of Lino Lakes 20,757,860 41.817% 20,757,860 $351,033 21,108,89341.122% 0.695% 144,350Anoka County 335,542,347 34.473% 335,542,347 351,033 335,893,380 34.437% 0.036% 120,885Centennial SD #12 33,044,600 35.984% 33,044,600 351,033 33,395,633 35.606% 0.378% 124,988Other - 5.300% - - - 5.300% - -Totals 117.574% 116.464% 1.110% * Statement 1: If the projected Retained Captured Net Tax Capacity of the TIF District was hypothetically available to each ofthe taxing jurisdictions above, the result would be a lower local tax rate (see Hypothetical Adjusted Tax Rate above)which would produce the same amount of taxes for each taxing jurisdiction. In such a case, the total local tax ratewould decrease by 1.110% (see Hypothetical Decrease in Local Tax Rate above). The hypothetical tax that theRetained Captured Net Tax Capacity of the TIF District would generate is also shown above.Statement 2: Since the projected Retained Captured Net Tax Capacity of the TIF District is not available to the taxing jurisdictions,then there is no impact on taxes levied or local tax rates. (1) Taxable net tax capacity = total net tax capacity - captured TIF - fiscal disparity contribution, if applicable. (2) The impact on these taxing jurisdictions is negligible since they represent only 4.51% of the total tax rate. Second Draft June 13, 2019 CONTRACT FOR PRIVATE DEVELOPMENT between LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY and LYNGBLOMSTEN SENIOR HOUSING, INC. Dated: _____________, 2019 This document was drafted by: KENNEDY & GRAVEN, Chartered (JAE) 470 U.S. Bank Plaza 200 South Sixth Street Minneapolis, Minnesota 55402 Telephone: 612-337-9300 i TABLE OF CONTENTS Page PREAMBLE ....................................................................................................................................... 1 ARTICLE I Definitions Section 1.1. Definitions .................................................................................................................... 3 ARTICLE II Representations and Warranties Section 2.1. Representations by the Authority ................................................................................. 7 Section 2.2. Representations and Warranties by the Developer ...................................................... 7 ARTICLE III Tax Increment Financing Assistance Section 3.1. Status of Development Property .................................................................................. 9 Section 3.2. Environmental Conditions ............................................................................................ 9 Section 3.3. Minimum Improvements .............................................................................................. 9 Section 3.4. Reimbursement of Senior Building Costs .................................................................. 10 Section 3.5. Issuance of TIF Note .................................................................................................. 10 Section 3.6. Reduction of TIF Note................................................................................................ 11 Section 3.7. Sale of Restaurant Parcel or Commercial Parcel ....................................................... 12 Section 3.8. City Development Agreement .................................................................................... 12 Section 3.9. Payment of Authority Costs ....................................................................................... 12 Section 3.10. Records ....................................................................................................................... 12 Section 3.11. Purpose of Assistance ................................................................................................. 12 ARTICLE IV Construction of Minimum Improvements Section 4.1. Construction of Improvements ................................................................................... 13 Section 4.2. Construction Plans ...................................................................................................... 13 Section 4.3. Commencement and Completion of Construction ..................................................... 14 Section 4.4. Certificate of Completion ........................................................................................... 14 Section 4.5. Affordability Covenants; Qualification of TIF District ............................................. 15 Section 4.6. Affordability Housing Reporting ............................................................................... 15 Section 4.7 Senior Housing Covenant ........................................................................................... 16 Section 4.8 Uniformity of Finishes, Amenities ............................................................................. 16 ii ARTICLE V Insurance Section 5.1. Insurance ..................................................................................................................... 17 Section 5.2. Subordination .............................................................................................................. 18 ARTICLE VI Tax Increment; Taxes Section 6.1. Right to Collect Delinquent Taxes ............................................................................. 19 Section 6.2. Reduction of Taxes ..................................................................................................... 19 Section 6.3. Qualifications .............................................................................................................. 19 Section 6.4. Minimum Assessment Agreement ............................................................................. 20 ARTICLE VII Other Financing Section 7.1. Generally ..................................................................................................................... 21 Section 7.2. Authority’s Option to Cure Default on Mortgage ...................................................... 21 Section 7.3. Modification; Subordination ...................................................................................... 21 Section 7.4. Termination ................................................................................................................ 21 ARTICLE VIII Prohibitions Against Assignment and Transfer; Indemnification Section 8.1. Representation as to Development ............................................................................. 23 Section 8.2. Prohibition Against Developer’s Transfer of Property and Assignment of Agreement .......................................................................................... 23 Section 8.3. Release and Indemnification Covenants .................................................................... 23 ARTICLE IX Events of Default Section 9.1. Events of Default Defined .......................................................................................... 25 Section 9.2. Remedies on Default .................................................................................................. 25 Section 9.3. Termination or Suspension of TIF Note .................................................................... 26 Section 9.4. No Remedy Exclusive ................................................................................................ 26 Section 9.5. No Additional Waiver Implied by One Waiver ........................................................ 26 Section 9.6. Attorneys’ Fees ........................................................................................................... 27 ARTICLE X Additional Provisions Section 10.1. Conflict of Interests; Representatives Not Individually Liable ................................. 28 Section 10.2. Equal Employment Opportunity ................................................................................ 28 Section 10.3. Restrictions on Use ..................................................................................................... 28 iii Section 10.4. Titles of Articles and Sections .................................................................................... 28 Section 10.5. Notices and Demands ................................................................................................. 28 Section 10.6. Counterparts ................................................................................................................ 29 Section 10.7. Recording .................................................................................................................... 29 Section 10.8. Amendment ................................................................................................................ 29 Section 10.9. Authority Approvals ................................................................................................... 29 Section 10.10. Termination ................................................................................................................ 29 Section 10.11. Choice of Law and Venue .......................................................................................... 20 TESTIMONIUM .............................................................................................................................. S-1 SIGNATURES ................................................................................................................................. S-1 EXHIBIT A DEVELOPMENT PROPERTY .............................................................................. A-1 EXHIBIT B CERTIFICATE OF COMPLETION ....................................................................... B-1 EXHIBIT C INFRASTRUCTURE IMPROVEMENTS ............................................................. C-1 EXHIBIT D LAND DEDICATION BY DEVELOPER ............................................................. D-1 EXHIBIT E FORM OF TIF NOTE .............................................................................................. E-1 EXHIBIT F FORM OF INVESTMENT LETTER ..................................................................... F-1 EXHIBIT G COMPLIANCE CERTIFICATE ............................................................................. G-1 EXHIBIT H FORM OF MINIMUM ASSESSMENT AGREEMENT ....................................... H-1 1 CONTRACT FOR PRIVATE DEVELOPMENT THIS CONTRACT FOR PRIVATE DEVELOPMENT, made as of the _____ day of _____________, 2019 (the “Agreement”), is between the LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY, a public body corporate and politic under the laws of the State of Minnesota (the “Authority”), and LYNGBLOMSTEN SENIOR HOUSING, INC., a Minnesota limited liability company (the “Developer”). WITNESSETH: WHEREAS, the Authority and the City of Lino Lakes, Minnesota (the “City”) have undertaken a program to promote economic development and job opportunities and to promote the development of land which is underutilized within the City, and in connection created a Development District known as Development District No. 1 (the “Development District”) pursuant to Minnesota Statutes, Sections 469.124 to 469.133, as amended (the “Municipal Development Act”) which is administered by the Authority; and WHEREAS, the Authority approved Tax Increment Financing Plan for Tax Increment Financing (Housing) District No. 1-5 (the “Willow Ponds TIF District) on December 28, 1992 and the Authority has approximately $382,000 available from the Willow Ponds TIF District that may be used within the Development District for affordable housing; and WHEREAS, the City and the Authority have approved a Tax Increment Financing Plan for Tax Increment Financing (Housing) District No. 1-13 (the “TIF District”) pursuant to Minnesota Statutes, Sections 469.174 to 469.1794, as amended (the “Tax Increment Act”), made up of certain property within the Development District (the “Development Property”); and WHEREAS, pursuant to the Municipal Development Act and the Minnesota Statutes Sections 469.090 through 469.1082, as amended (the “EDA Act”), the Authority is authorized to undertake certain activities to facilitate the development of real property by private enterprise, including development of affordable housing within the City; and WHEREAS, the Developer proposes to acquire certain property described in EXHIBIT A attached hereto (the “Development Property”) within the TIF District and construct a senior rental housing facility with approximately 143 units, comprised of independent living and assisted living, with at least twenty percent (20%) of such units to be available to persons of low and moderate income, as described herein (the “Senior Building”); and WHEREAS, in order to achieve the objectives of the Development Program for the Development District and make the Senior Building economically feasible for the Developer to construct, the Authority is prepared to reimburse the Developer for a portion of the development costs related to the Senior Building; and WHEREAS, the Authority believes that the development of the Senior Building within the TIF District pursuant to this Agreement, and fulfillment generally of this Agreement, is in the vital 2 and best interests of the City and the health, safety, morals, and welfare of its residents, and in accord with the public purposes and provisions of the applicable State of Minnesota and local laws and requirements under which the Senior Building has been undertaken and is being assisted. NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: (The remainder of this page is intentionally left blank.) 3 ARTICLE I Definitions Section 1.1. Definitions. In this Agreement, unless a different meaning clearly appears from the context: “Agreement” means this Contract for Private Development, as the same may be from time to time modified, amended, or supplemented. “Authority” means the Lino Lakes Economic Development Authority, a public body corporate and politic under the laws of the State. “Authority Representative” means the Executive Director of the Authority or any person designated by the Executive Director to act as the Authority Representative for the purposes of this Agreement. “Authorizing Resolution” means the resolution of the Authority adopted by Authority Board on July 8, 2019, approving this Agreement and authorizing the issuance of the TIF Note. “Available Tax Increment,” means, on each Payment Date, ninety-five percent (95%) of the Tax Increment attributable to the Development Property and paid to the Authority by the County in the six months preceding the Payment Date. Available Tax Increment shall not include any Tax Increment if, as of any Payment Date, there is an uncured Event of Default under this Agreement. “Board” means the Board of Commissioners of the Authority. “Certificate of Completion” means the Certificate, in substantially the form attached as EXHIBIT B, provided to the Developer pursuant to Section 4.4 of this Agreement. “City” means the City of Lino Lakes, Minnesota. “Clubhouse” means an approximately __________ square feet clubhouse constructed on the Development Property to be open to residents of the Townhomes, the Senior Building, and the Skilled Nursing Units. “Construction Plans” means the plans, specifications, drawings and related documents related to the Minimum Improvements, which (a) shall be as detailed as the plans, specifications, drawings and related documents which are submitted to the appropriate building officials of the City, and (b) shall include at least the following: (1) site plan; (2) foundation plan; (3) floor plan for each floor; (4) elevations (all sides, including a building materials schedule); (5) landscape and grading plan; and (6) such other plans or supplements to the foregoing plans as the City may reasonably request to allow it to ascertain the nature and quality of the proposed construction work. 4 “County” means Anoka County, Minnesota. “Developer” means Lyngblomsten Senior Housing, Inc., a Minnesota limited liability company, or its permitted successors and assigns. “Development District” means the Development District No. 1. “Development Program” means the Authority’s Development Program for the Development District, as amended. “Development Property” means the real property described in EXHIBIT A of this Agreement. “EDA Act” means Minnesota Statutes Sections 469.090 through 469.1082, as amended. “Event of Default” means an action by the Developer listed in Article IX of this Agreement. “Holder” means the owner of a Mortgage. “Infrastructure Improvements” means the infrastructure improvements to be constructed, installed, and paid for by the Developer as described in EXHIBIT C of this Agreement. “Material Change” means a change in construction plans that adversely affects generation of tax increment or changes the number of units of rental housing. “Maturity Date” means the date that the TIF Note has been paid in full or terminated in accordance with its terms, whichever is earlier. “Minimum Assessment Agreement” means the Minimum Assessment Agreement described in Section 6.4 hereof and in substantially the form set forth in EXHIBIT H. “Minimum Improvements” means the construction by the Developer of the Senior Building, the Townhomes, the Clubhouse, the Infrastructure Improvements, and subject to the provisions of Section 3.3, the Skilled Nursing Units. “Minimum Market Value” means $________________, as set forth in the Minimum Assessment Agreement. “Mortgage” means any mortgage made by the Developer that is secured, in whole or in part, with the Development Property and that is a permitted encumbrance pursuant to the provisions of Article VII of this Agreement. “Municipal Development Act” means Minnesota Statutes, Sections 469.124 to 469.133, as amended. “Payment Date” has the meaning given such term in the TIF Note. 5 “Senior Building” means an approximately __________ square foot senior rental housing facility containing at least 143 rental units, comprised of approximately 93 independent living units and approximately 50 assisted living units, of which at least 20% of such units will be occupied by persons with incomes no greater than 50% of the area median gross income. “Senior Building Costs” means those costs to be paid or reimbursed to the Developer by the Authority in connection with the development hereunder as set forth in Section 3.4(b). “Skilled Nursing Units” has the meaning given in Section 3.3 hereof. “State” means the State of Minnesota. “Tax Increment” means that portion of the real property taxes that is paid with respect to the TIF District and that is remitted to the Authority as tax increment pursuant to the Tax Increment Act. “Tax Increment Act” or “TIF Act” means the Tax Increment Financing Act, Minnesota Statutes, Sections 469.174 through 469.1794, as amended. “Tax Increment District” or “TIF District” means the Tax Increment Financing (Housing) District No. 1-13, a housing tax increment financing district created by the City and the Authority. “Tax Increment Plan” or “TIF Plan” means the Tax Increment Financing Plan for the Tax Increment Financing District 1-13 (Lyngblomsten Senior Housing Project), as approved by the City Council on July 8, 2019, and as it may be amended. “Tax Increment District Property” means the Development Property that is included in the TIF District. “Tax Official” means any County assessor; County auditor; County or State board of equalization, the commissioner of revenue of the State, or any State or federal district court, the tax court of the State, or the State Supreme Court. “TIF Note” means a Tax Increment Revenue Note, substantially in the form attached hereto as EXHIBIT E, to be delivered by the Authority to the Developer in accordance with Section 3.5 hereof. “Townhomes” has the meaning given in Section 3.3 hereof. “Transfer” has the meaning set forth in Section 8.2(a) hereof. “Unavoidable Delays” means delays beyond the reasonable control of the party seeking to be excused as a result thereof which are the direct result of strikes, other labor troubles, prolonged adverse weather or acts of God, fire or other casualty to the Minimum Improvements, litigation commenced by third parties which, by injunction or other similar judicial action, directly results in 6 delays, or acts of any federal, state or local governmental unit (other than the Authority in exercising its rights under this Agreement), including without limitation condemnation or threat of condemnation of any portion of the Development Property, which directly result in delays. Unavoidable Delays shall not include delays experienced by the Developer in obtaining permits or governmental approvals necessary to enable construction of the Minimum Improvements by the dates such construction is required under Section 4.3 hereof, so long as the Construction Plans have been approved in accordance with Section 4.2 hereof. “Willow Ponds TIF District” means the Tax Increment Financing (Housing) District No. 1-5 approved by the Authority on December 28, 1992. (The remainder of this page is intentionally left blank.) 7 ARTICLE II Representations and Warranties Section 2.1. Representations by the Authority. The Authority makes the following representations as the basis for the undertaking on its part herein contained: (a) The Authority is a public body corporate and politic under the laws of the State of Minnesota. Under the provisions of the Municipal Development Act and the EDA Act, the Authority has the power to enter into this Agreement and carry out its obligations hereunder. (b) The Authority proposes to assist in financing the Senior Building Costs necessary to facilitate the construction of the Minimum Improvements in accordance with the terms of this Agreement to further the objectives of the Development Program. (c) The Authority finds that the Minimum Improvements are necessary to alleviate a shortage of, and maintain existing supplies of, decent, safe, and sanitary senior housing for persons of low or moderate income and their families as such income is determined pursuant to Section 4.5. Section 2.2. Representations and Warranties by the Developer. The Developer represents and warrants that: (a) The Developer is a nonprofit corporation, which is duly organized and in good standing under the laws of the State; the Developer is not in violation of any provisions of its bylaws or articles of incorporation; and the Developer is duly authorized to transact business within 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 respective officers, directors, managers, governors or members (as applicable). (b) The Developer will construct the Minimum Improvements and cause the Minimum Improvements to be operated and maintained in accordance with the terms of this Agreement, the Development Program and all local, State and federal laws and regulations (including, but not limited to, environmental, zoning, building code and public health laws and regulations). (c) The Developer has received no notice or communication from any local, State or federal official that the activities of the Developer or the Authority in the Project Area may be or will be in violation of any environmental law or regulation (other than those notices or communications of which the Authority is aware). The Developer is aware of no facts the existence of which would cause it to be in violation of or give any person a valid claim under any local, State or federal environmental law, regulation or review procedure. (d) The Developer will use its best efforts to obtain or cause to be obtained, in a timely manner, all required permits, licenses and approvals, and will meet, in a timely manner, all requirements of all applicable local, State and federal laws and regulations which must be obtained or met before the Minimum Improvements may be lawfully constructed. The Developer did not 8 obtain a building permit for any portion of the Minimum Improvements before July 8, 2019, the date of approval of the TIF Plan for the TIF District. (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 corporate restriction or any evidences of indebtedness, agreement or instrument of whatever nature to which the Developer is now a party or by which it is bound, or constitutes a default under any of the foregoing, which default or breach might prevent the Developer from performing its obligations under this Agreement. (f) The Developer shall promptly advise the Authority in writing of all litigation or claims affecting any part of the Minimum Improvements and all written complaints and charges made by any governmental authority materially affecting the Minimum Improvements or materially affecting Developer or its business which may delay or require changes in construction of the Minimum Improvements. (g) The Developer represents that no more than twenty percent (20%) of the square footage of the Minimum Improvements will consist of commercial, retail or other nonresidential use. (h) The Developer represents that each independent care unit and each assisted living unit within the Senior Building has facilities to cook (such as a microwave) and a bathroom. Certain units in the Minimum Improvements will have access to 24-hour care from home health aides and a nurse on call service but none of the units in the Minimum Improvements will have 24- hour nursing care on-site. (The remainder of this page is intentionally left blank.) 9 ARTICLE III Tax Increment Financing Assistance Section 3.1. Status of Development Property. The Developer will acquire the Development Property. The Authority has no obligation to acquire the Development Property. Section 3.2. Environmental Conditions. (a) The Developer acknowledges that the Authority makes no representations or warranties as to the condition of the soils on the Development Property or the fitness of the Development Property for construction of the Minimum Improvements or any other purpose for which the Developer may make use of such property, and that the assistance provided to the Developer under this Agreement neither implies any responsibility by the Authority for any contamination of the Development Property nor imposes any obligation on the Authority to participate in any cleanup of the Development Property. (b) Without limiting its obligations under Section 8.3 hereof, the Developer further agrees that it will indemnify, defend, and hold harmless the Authority and its governing body members, officers, and employees, from any claims or actions arising out of the presence, if any, of hazardous wastes or pollutants existing on or in the Development Property, unless and to the extent that such hazardous wastes or pollutants are present as a result of the actions or omissions of the indemnitees. Nothing in this section will be construed to limit or affect any limitations on liability of the Authority under State or federal law, including without limitation Minnesota Statutes, Sections 466.04 and 604.02. Section 3.3. Minimum Improvements. (a) The Developer shall cause to be constructed the following on the Development Property: (i) the Senior housing building with approximately 93 independent living units and approximately 50 assisted living units (the “Senior Building”); (ii) 20 detached townhomes on land adjacent to the Senior Building (the “Townhomes”); (iii) a clubhouse for use by residents of the Townhomes and the Senior Building (the “Clubhouse”); and (iv) the Infrastructure Improvements described in EXHIBIT C. (b) The Developer shall dedicate land to the City or the County, as applicable, Infrastructure Improvements as described in EXHIBIT D. 10 (c) The Developer intends to construct an addition to the Senior Building at some point in the future which will include approximately 56 units of skilled nursing units (the “Skilled Nursing Units”). The Developer shall build the Skilled Nursing Units if it is able to obtain the proper approvals needed from the State. If the Developer is unable to obtain the proper licensing from the State to operate the Skilled Nursing Units after diligent efforts to obtain such licensing, it shall not be a default hereunder if the Developer does not build the Skilled Nursing Units. (d) The Developer acknowledges and understands that all of the assisted living units within the Senior Building must include kitchen facilities and bathrooms. In addition, the Developer confirms that none of the assisted living units within the Senior Building will receive 24 hour medical care. (e) The Developer further acknowledges and understands that no more than twenty percent (20%) of the square footage of buildings that receive assistance from tax increments may consist of commercial, retail, or other nonresidential uses. If the Developer constructs the Skilled Nursing Units as an addition to the Senior Building, the Skilled Nursing Units and all other commercial, retail, or other nonresidential uses within the Senior Building must not be more than twenty percent (20%) of the Senior Building. If the Skilled Nursing Units are constructed more than three years after the construction of the Senior Building is completed, the expansion of the Skilled Nursing Units may be treated as a separate building and will not be counted toward the 20% limit for commercial, retail or other nonresidential uses in the Senior Building. Section 3.4. Reimbursement of Senior Building Costs. (a) The Developer shall take all commercially reasonable action necessary to acquire the Development Property and construct the Minimum Improvements. In order to make the development of the Senior Building economically feasible, the Authority shall reimburse the Developer for Senior Building Costs in the maximum amount of $3,600,000. (b) Senior Building Costs shall include acquisition of land within the TIF District in the maximum amount of $487,000, demolition and remediation costs directly related to the Senior Building, parking improvements related to the Senior Building, and costs of constructing the Senior Building. (c) The Developer will be reimbursed for Senior Building Costs with $382,000 from the Willow Ponds TIF District and the TIF Note described in Section 3.5 hereof. Section 3.5. Issuance of TIF Note. (a) Terms. In order to reimburse the Developer for a portion of the Senior Building Costs related to development of the Senior Building on the Development Property, the Authority shall issue and Developer shall purchase, for the consideration outlined herein, the TIF Note in the maximum principal amount of $3,218,000 in substantially the form set forth in EXHIBIT D attached hereto. The Authority and the Developer agree that the TIF Note shall be issued in consideration of the Developer paying the Senior Building Costs. Before delivery of the TIF Note, the Developer shall have: 11 (i) delivered to the Authority written evidence in a form satisfactory to the Authority that the Developer has paid Senior Building Costs in at least the principal amount of the TIF Note; (ii) submitted the Construction Plans to the Authority and obtained approval for the Construction Plans from the Authority; (iii) obtained all land use approvals necessary for the construction of the Minimum Improvements; (iv) submitted evidence that the Developer has obtained financing in accordance with Section 7.1 hereof; (v) completed construction of the Infrastructure Improvements; and (vi) delivered to the Authority an investment letter in a form set forth in EXHIBIT F attached hereto. (b) Qualifications. The Developer understands and acknowledges that the Authority makes no representations or warranties regarding the amount of Available Tax Increment, or that revenues pledged to the TIF Note will be sufficient to pay the principal and interest on the TIF Note. Any estimates of Tax Increment prepared by the Authority or its financial advisors in connection with the TIF District or this Agreement are for the benefit of the Authority, and are not intended as representations on which the Developer may rely. If the total Senior Building Costs exceed the principal amount of the TIF Note, such excess is the sole responsibility of Developer. (c) The Authority acknowledges that the Developer may assign the TIF Note to any lender that provides part of the financing for the acquisition of the Development Property or the construction of the Minimum Improvements. The Authority consents to such assignment, conditioned upon receipt of an investment letter from such lender in substantially the form set forth in EXHIBIT E attached hereto. Section 3.6. Reduction of TIF Note. (a) The principal amount of the TIF Note will be reduced by the amount of any additional trunk credits or fee reductions it receives from the City (not including the credits described in Section 3.8(b) hereof). (b) Within sixty (60) days of the completion of the construction of the Senior Building, the Developer shall provide the Authority with final construction costs of the Senior Building (including related Infrastructure Improvements). If the final construction costs of constructing the Senior Building (including related Infrastructure Improvements) are less than estimated by the Developer at the time it sought assistance from the Authority, the Authority shall reduce the principal amount of the TIF Note by 5% of the difference between the initial estimated construction 12 costs of the Senior Building (including related Infrastructure Improvements) and the final construction costs of the Senior Building (including related Infrastructure Improvements). Section 3.7. Sale of Restaurant Parcel or Commercial Parcel. In the first eight years following the date of this Agreement, if the Developer sells Parcel 2, Parcel 3, Parcel 4a, Parcel 4b, and/or Parcel 4c (as described in EXHIBIT A) for more than five percent (5%) of the Developer’s cost for such parcel (including purchase price and all fees related to the purchase), the Developer shall pay to the Authority 45% of the profit obtained by Developer for such parcel. The cost of each parcel sold by the Developer shall be determined by dividing the gross land price paid by the Developer by the net developable acreage of each parcel to determine a per square foot cost and multiplying the square footage cost by the number of square feet sold. Section 3.8. City Development Agreement. (a) As set forth in the Development Agreement entered into between the City and the Developer (the “Development Agreement”), the Developer has agreed to construct the following public improvements for the City: public streets (including County road improvements), sanitary sewer, water main, storm sewer and ponds, trail and sidewalk. Pursuant to the Development Agreement, the Developer has also agreed to construct the following private improvements: private street, grading, storm ponds, and landscaping. (b) Pursuant to City policies, it is expected that the Developer will receive credits from the City in the amount of approximately $300,000 for the Developer’s park dedication fees, trunk utility fees, and surface water management fees related to the Minimum Improvements in exchange for the public trail improvements the Developer has agreed to pay for and construct and the Developer’s payment for and construction of oversized utility improvements for the Minimum Improvements. Section 3.9. Payment of Administrative Costs. The Developer will deposit with the Authority $__________ to pay Administrative Costs. The Authority will use such deposit to pay “Administrative Costs,” which term means out of pocket costs incurred by the Authority, together with staff and consultant costs of the Authority, all attributable to or incurred in connection with the negotiation, preparation or modification of this Agreement, the TIF Plan, and other documents and agreements in connection with the establishment of the TIF District and development of the Development Property, and not previously paid by Developer. If at any time the Authority determines that the deposit is insufficient to pay Administrative Costs, the Developer is obligated to pay such shortfall within 30 days after receipt of a written notice from the Authority containing evidence of the unpaid costs. If Administrative Costs incurred, and reasonably anticipated to be incurred are less than the deposit by the Developer, the Authority shall return to the Developer any funds not anticipated to be needed. Section 3.10. Records. The Authority and its representatives shall have the right at all reasonable times after reasonable notice to inspect, examine and copy all books and records of Developer relating to the Minimum Improvements and the costs for which the Developer has been reimbursed with Tax Increment. 13 Section 3.11. Purpose of Assistance. The parties agree and understand that the purpose of the Authority’s financial assistance to the Developer is to facilitate development of affordable residential senior rental housing for persons of low and moderate income, and is not a “business subsidy” within the meaning of Minnesota Statutes, Sections 116J.993 to 116J.995, as amended. (The remainder of this page is intentionally left blank.) 14 ARTICLE IV Construction of Minimum Improvements Section 4.1. Construction of Improvements. The Developer agrees that it will construct the Minimum Improvements on the Development Property substantially in accordance with the approved Construction Plans and at all times prior to the Maturity Date, will cause the Minimum Improvements to be operated and maintained, preserved and kept with the appurtenances and every part and parcel thereof, in good repair and condition. Section 4.2. Construction Plans. (a) Before commencing construction of the Minimum Improvements, the Developer shall submit to the Authority the Construction Plans for the Minimum Improvements. The Construction Plans shall provide for the construction of the Minimum Improvements and shall be in substantial conformity with the Development Program, this Agreement, and all applicable State and local laws and regulations. The Authority Representative will approve the Construction Plans in writing if: (i) the Construction Plans conform to all terms and conditions of this Agreement; (ii) the Construction Plans conform to the goals and objectives of the Development Program; (iii) the Construction Plans conform to all applicable federal, State and local laws, ordinances, rules and regulations; (iv) the Construction Plans are adequate to provide for construction of the Minimum Improvements; (v) the Construction Plans do not provide for expenditures in excess of the funds available to the Developer from all sources (including the Developer’s equity) for construction of the Minimum Improvements; and (vi) no Event of Default has occurred and is continuing. Approval may be based upon a review by the City’s building official of the Construction Plans. No approval by the Authority Representative shall relieve the Developer of the obligation to comply with the terms of this Agreement or of the Development Program, applicable federal, state and local laws, ordinances, rules and regulations, or to construct the Minimum Improvements in accordance therewith. No approval by the Authority Representative shall constitute a waiver of an Event of Default. If approval of the Construction Plans is requested by the Developer in writing at the time of submission, such Construction Plans shall be deemed approved unless rejected in writing by the Authority Representative, in whole or in part. Such rejections shall set forth in detail the reasons therefor, and shall be made within ten (10) days after the date of their receipt by the Authority. If the Authority Representative rejects any Construction Plans in whole or in part, the Developer shall submit new or corrected Construction Plans within ten (10) days after written notification to the Developer of the rejection. The provisions of this Section relating to approval, rejection and resubmission of corrected Construction Plans shall continue to apply until the Construction Plans have been approved by the Authority. The Authority Representative’s approval shall not be unreasonably withheld, delayed or conditioned. Said approval shall constitute a conclusive determination that the Construction Plans (and the Minimum Improvements constructed in accordance with said plans) comply to the Authority’s satisfaction with the provisions of this Agreement relating thereto. (b) If the Developer desires to make any Material Change in the Construction Plans or any component thereof after their approval by the Authority, the Developer shall submit the 15 proposed change to the Authority for its approval. If the Construction Plans, as modified by the proposed change, conform to the requirements of this Section 4.2 with respect to such previously approved Construction Plans, the Authority shall approve the proposed change and notify the Developer in writing of its approval. Such change in the Construction Plans shall, in any event, be deemed approved by the Authority unless rejected, in whole or in part, by written notice by the Authority to the 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. The Authority’s approval of any such change in the Construction Plans will not be unreasonably withheld. (c) The requirements of this Section 4.2 do not have any effect on the City’s general planning process and the timelines for submitting various planning and land use applications. Section 4.3. Commencement and Completion of Construction. Subject to Unavoidable Delays, the Developer shall commence construction of the Independent Living Units, Assisted Living Units, and Townhomes on or before April 30, 2020 and complete construction of these components of the Minimum Improvements on or before December 31, 2024. Subject to Unavoidable Delays, the Developer shall commence construction of the Clubhouse on or before April 30, 2023 and complete construction of the Clubhouse on or before December 31, 2024. All work with respect to the Minimum Improvements to be constructed or provided by the Developer on the Development Property shall be in substantial conformity with the Construction Plans as submitted by the Developer and approved by the Authority. The Developer agrees for itself, its successors, and assigns, and every successor in interest to the Development Property, or any part thereof, that the Developer, and such successors and assigns, shall promptly begin and diligently prosecute to completion the development of the Development Property through the construction of the Minimum Improvements thereon, and that such construction shall in any event be commenced and completed within the period specified in this Section 4.3. After the date of this Agreement and until construction of the Minimum Improvements has been completed, the Developer shall make reports, in such detail and at such times as may reasonably be requested by the Authority, as to the actual progress of the Developer with respect to such construction. Section 4.4. Certificate of Completion. (a) Promptly after completion of the Minimum Improvements in accordance with those provisions of the Agreement relating solely to the obligations of the Developer to construct the Minimum Improvements (including the dates for beginning and completion thereof), the Authority Representative will furnish the Developer with a Certificate of Completion shown as EXHIBIT B attached hereto. (b) If the Authority Representative shall refuse or fail to provide any certification in accordance with the provisions of this Section 4.4, the Authority Representative shall, within thirty (30) days after written request by the Developer, provide the Developer with a written statement, indicating in adequate detail in what respects the Developer has failed to complete the Minimum Improvements in accordance with the provisions of the Agreement, or is otherwise in default, and 16 what measures or acts will be necessary, in the opinion of the Authority, for the Developer to take or perform in order to obtain such certification. (c) Regardless of whether a Certificate of Completion is issued by the Authority, the construction of the Minimum Improvements shall be deemed to be complete upon issuance of a certificate of occupancy by the City. Section 4.5. Affordability Covenants; Qualification of TIF District. The Authority and the Developer understand and agree that the TIF District constitutes a “housing district” under Section 469.174, subdivision 11 and Section 469.1761 of the TIF Act. In that regard, the Developer agrees that the Minimum Improvements are subject to the following affordability covenants: (a) At all times from initial occupancy of the Minimum Improvements through the Maturity Date, the Minimum Improvements must comply with Section 469.1761, subdivision 3 of the TIF Act, which requires that the Minimum Improvements satisfy the income requirements for a qualified residential rental project as defined in Section 142(d) of the Internal Revenue Code. (b) In consideration of the financial assistance provided by this Agreement (from tax increment), the Developer represents and covenants that from the date the Minimum Improvements are initially occupied through the Maturity Date, at least twenty percent (20%) of the units in the Minimum Improvements, including any units designated as guest units, shall be available for occupancy by individuals or families whose income is fifty percent (50%) or less of the area median gross income. (c) If the Authority receives notice from the State Department of Revenue, the State Auditor, any Tax Official or any court of competent jurisdiction that the TIF District does not qualify as a “housing district,” due to the action or inaction of the Developer, such event shall be deemed an Event of Default under this Agreement; provided, however, that the Authority may not exercise any remedy under this Agreement so long as such determination is being contested and has not been finally adjudicated. In addition to any remedies available to the Authority under Article IX hereof, the Developer shall indemnify, defend and hold harmless the Authority for any damages or costs resulting therefrom, except with respect to damages or costs resulting from the gross negligence or willful misconduct of the Authority. (d) The Developer understands that if the Developer does not comply with the affordability covenants in this Section 4.5, the TIF Act requires the Authority to decertify the TIF District. Section 4.6. Affordable Housing Reporting. At least annually, no later than April 1 of each year commencing on the April 1 first following the issuance of the Certificate of Completion, the Developer shall provide a report to the Authority evidencing that the Developer complied with the affordability covenants set forth in Section 4.5 hereof during the previous calendar year. The Report shall include the compliance certificate set forth in EXHIBIT G and the income form entitled “Tenant Income Certificate” from the Minnesota Housing Finance Agency (MHFA HTC Form 14), or if unavailable, any similar form, for each residential unit meeting the affordability requirements under Section 4.5. The Authority may require the Developer to provide additional information in 17 order to access the accuracy of such certification. Unless earlier excused by the Authority, the Developer shall send affordable housing reports to the Authority from the date of this Agreement until the Maturity Date. Section 4.7. Senior Housing Covenant. At all times from initial occupancy of the Minimum Improvements through the Maturity Date, one hundred percent (100%) of the units in the Minimum Improvements shall be occupied by at least one occupant who is at least 55 years of age or older at the time of initial occupancy. Section 4.8. Uniformity of Finishes, Amenities. The affordable units in the Minimum Improvements shall have the same finishes and amenities as the market-rate units. (The remainder of this page is intentionally left blank.) 18 ARTICLE V Insurance Section 5.1. Insurance. (a) The Developer will provide and maintain at all times during the process of constructing the Minimum Improvements an All Risk Broad Form Basis Insurance Policy and, from time to time during that period, at the request of the Authority, furnish the Authority with proof of payment of premiums on policies covering the following: (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. The interest of the Authority shall be protected in accordance with a clause in form and content satisfactory to the Authority; (ii) comprehensive general liability insurance (including operations, contingent liability, operations of subcontractors, completed operations and contractual liability insurance) together with an Owner’s Liability Policy with limits against bodily injury and property damage of not less than $1,000,000 for each occurrence (to accomplish the above- required limits, an umbrella excess liability policy may be used); the Authority shall be listed as an additional insured on the policy; and (iii) workers’ compensation insurance, with statutory coverage; provided that the Developer may be self-insured with respect to all or any part of its liability for workers’ compensation. (b) Upon completion of construction of the Minimum Improvements and prior to the Maturity Date, the Developer shall maintain, or cause to be maintained, at its cost and expense, and from time to time at the request of the Authority shall furnish proof of the payment of premiums on, insurance as follows: (i) insurance against loss and/or damage to the Minimum Improvements under a policy or policies covering such risks as are ordinarily insured against by similar businesses; (ii) comprehensive general public liability insurance, including personal injury liability (with employee exclusion deleted), against liability for injuries to persons and/or property, in the minimum amount for each occurrence and for each year of $1,000,000, and shall be endorsed to show the Authority as an additional insured; and (iii) such other insurance, including workers’ compensation insurance respecting all employees of the Developer, in such amount as is customarily carried by like organizations engaged in like activities of comparable size and liability exposure; provided 19 that the Developer may be self-insured with respect to all or any part of its liability for workers’ compensation. (c) All insurance required in this Article V shall be taken out and maintained in responsible insurance companies selected by the Developer that are authorized under the laws of the State to assume the risks covered thereby. Upon request, the Developer will deposit annually with the Authority a certificate or certificates or binders of the respective insurers stating that such insurance is in force and effect. Unless otherwise provided in this Article V each policy shall contain a provision that the insurer shall not cancel nor modify it in such a way as to reduce the coverage provided below the amounts required herein without giving written notice to the Developer and the Authority at least thirty (30) days before the cancellation or modification becomes effective. In lieu of separate policies, the Developer may maintain a single policy, blanket or umbrella policies, or a combination thereof, having the coverage required herein, in which event the Developer shall deposit with the Authority a certificate or certificates of the respective insurers as to the amount of coverage in force upon the Minimum Improvements. (d) The Developer agrees to notify the Authority immediately in the case of damage exceeding $1,000,000 in amount to, or destruction of, the Minimum Improvements or any portion thereof resulting from fire or other casualty. In such event the Developer will promptly cause the repair, reconstruction and restoration of the Minimum Improvements to substantially the same or an improved condition or value as it existed prior to the event causing such damage and, to the extent necessary to accomplish such repair, reconstruction and restoration, the Developer will apply the net proceeds of any insurance relating to such damage received by the Developer to the payment or reimbursement of the costs thereof. The Developer shall cause to be completed the repair, reconstruction and restoration of the Minimum Improvements, regardless of whether the net proceeds of insurance received by the Developer for such purposes are sufficient to pay for the same. Any net proceeds remaining after completion of such repairs, construction and restoration shall be the property of the Developer or its assignee (e) The Developer and the Authority agree that all of the insurance provisions set forth in this Article V shall terminate upon the termination of this Agreement. Section 5.2. Subordination. Notwithstanding anything to the contrary contained herein, the rights of the Authority with respect to the receipt and application of any proceeds of insurance shall, in all respects, be subject and subordinate to the rights of any Holder under a Mortgage allowed pursuant to Article VII hereof. (The remainder of this page is intentionally left blank.) 20 ARTICLE VI Tax Increment; Taxes Section 6.1. Right to Collect Delinquent Taxes. The Developer acknowledges that the Authority is providing substantial aid and assistance in furtherance of the development through the issuance of the TIF Note. The Developer understands that the Tax Increments pledged to payment on the TIF Note are derived from real estate taxes on the Development Property, which taxes must be promptly and timely paid. To that end, the Developer agrees for itself, its successors and assigns, in addition to the obligation pursuant to statute to pay real estate taxes, that it is also obligated by reason of this Agreement to pay before delinquency all real estate taxes assessed against the Development Property and the Minimum Improvements. The Developer acknowledges that this obligation creates a contractual right on behalf of the Authority to sue the Developer or its successors and assigns to collect delinquent real estate taxes and any penalty or interest thereon and to pay over the same as a tax payment to the county auditor. In any such suit, the Authority shall also be entitled to recover its costs, expenses and reasonable attorney fees. Nothing in this Agreement in any way limits or prevents the Developer from contesting the assessor’s proposed market values for the Development Property or the Minimum Improvements, but the Developer recognizes that such action may affect the amount of Available Tax Increment. Section 6.2. Reduction of Taxes. The Developer agrees that after the date of certification of the Tax Increment District and prior to completion of the Minimum Improvements, it will not cause a reduction in the real property taxes paid in respect of the Tax Increment District Property through: (A) willful destruction of the Minimum Improvements, the Tax Increment District Property or any part thereof (except for the demolition of structures, if any, required to construct the Minimum Improvements); or (B) willful refusal to reconstruct damaged or destroyed property pursuant to Section 5.1 hereof. The Developer also agrees that it will not, prior to the Maturity Date, (i) seek exemption from property tax for the Tax Increment District Property; (ii) convey or transfer or allow conveyance or transfer of the Tax Increment District Property to any entity that is exempt from payment of real property taxes under State law; or (iii) seek or agree to any reduction of the assessor’s estimated market value to below the Minimum Market Value. The Developer may, at any time following the issuance of the Certificate of Completion, seek through petition or other means to have the Assessors Estimated Market Value for the Tax Increment District Property reduced to not less than the Minimum Market Value. Such activity must be preceded by written notice from the Developer to the Authority indicating its intention to do so. Section 6.3. Qualifications. Notwithstanding anything herein to the contrary, the parties acknowledge and agree that upon Transfer of the Development Property to another person or entity, the Developer will remain obligated under Sections 6.1 and 6.2 hereof, unless the Developer is 21 released from such obligations in accordance with the terms and conditions of Section 8.2(b) or 8.3 hereof. Section 6.4. Minimum Assessment Agreement. (a) On or before Closing, the Developer shall execute the Minimum Assessment Agreement pursuant to Minnesota Statutes, Section 469.177, subd. 8, specifying an assessor’s minimum market value for the Development Property with the Minimum Improvements constructed thereon. (b) The Minimum Assessment Agreement shall be substantially in the form attached hereto as EXHIBIT H. Nothing in the Assessment Agreement shall limit the discretion of the assessor to assign a market value to the property in excess of such assessor’s minimum market value nor prohibit the Developer from seeking through the exercise of legal or administrative remedies a reduction in such market value for property tax purposes, provided however, that the Developer shall not seek a reduction of such market value below the assessor’s minimum market value in any year so long as such Minimum Assessment Agreement shall remain in effect. The Assessment Agreement shall remain in effect for the period described in EXHIBIT H. (The remainder of this page is intentionally left blank.) 22 ARTICLE VII Other Financing Section 7.1. Generally. Before issuance of the TIF Note, the Developer shall submit to the Authority or provide access thereto for review by Authority staff, consultants, and agents, evidence reasonably satisfactory to the Authority that Developer has available funds, or commitments to obtain funds, whether in the nature of mortgage financing, equity, grants, loans, or other sources sufficient for paying the cost of developing the Minimum Improvements, provided that any lender or grantor commitments shall be subject only to such conditions as are normal and customary in the commercial lending industry. Section 7.2. Authority’s Option to Cure Default on Mortgage. In the event that any portion of the Developer’s funds is provided through mortgage financing, and there occurs a default under any Mortgage authorized pursuant to this Article VII, the Developer shall make commercially reasonable efforts to cause the Authority to receive copies of any notice of default received by the Developer from the Holder of such Mortgage. Thereafter, the Authority shall have the right, but not the obligation, to cure any such default on behalf of the Developer within such cure periods as are available to the Developer under the Mortgage documents. Section 7.3. Modification; Subordination. In order to facilitate the Developer obtaining financing for the development of the Minimum Improvements, the Authority agrees to subordinate its rights under this Agreement to the Holder of any Mortgage securing construction or permanent financing, under terms and conditions reasonably acceptable to the Authority. Any agreement to subordinate this Agreement must be approved by the Board of the Authority. Section 7.4. Termination. All the provisions of this Article VII shall terminate with respect to the Minimum Improvements upon delivery of the Certificate of Completion for the Minimum Improvements. The Developer or any successor in interest to the Minimum Improvements or portion thereof, may sell, assign, transfer or engage in financing or any other transaction creating a mortgage or encumbrance or lien on the Minimum Improvements or any portion thereof for which a Certificate of Completion has been obtained, without obtaining prior written approval of the Authority, provided that such sale, financing or other transaction creating a mortgage or encumbrance shall not be deemed as resulting in any subordination of the Authority’s rights under this Agreement unless the Authority expressly consents to such a subordination. (The remainder of this page is intentionally left blank.) 23 ARTICLE VIII Prohibitions Against Assignment and Transfer; Indemnification Section 8.1. Representation as to Development. The Developer represents and agrees that its purchase of the Development Property, and its other undertakings pursuant to the Agreement, are, and will be used, for the purpose of development of the Development Property and not for speculation in land holding. Section 8.2. Prohibition Against Developer’s Transfer of Property and Assignment of Agreement. The Developer represents and agrees that prior to issuance of a Certificate of Completion for the Minimum Improvements: (a) Except only by way of security for, and only for, the purpose of obtaining financing necessary to enable the Developer or any successor in interest to the Development Property, or any part thereof, to perform its obligations with respect to undertaking the development contemplated under this Agreement and except with respect to agreements customary to the development of new senior housing communities, and any other purpose authorized by this Agreement, the Developer has not made or created and will not make or create or suffer to be made or created any total or partial sale, assignment, conveyance, or lease, or any trust or power, or transfer in any other mode or form of or with respect to this Agreement or the Development Property or any part thereof or any interest therein, or any contract or agreement to do any of the same, to any person or entity whether or not related in any way to the Developer (collectively, a “Transfer”), without the prior written approval of the Authority (whose approval will not be unreasonably withheld, subject to the standards described in paragraph (b) of this Section) unless the Developer remains liable and bound by this Agreement in which event the Authority’s approval is not required. Any such Transfer shall be subject to the provisions of this Agreement. For the purposes of this Agreement, the term Transfer does not include acquisition of a controlling interest in Developer by another entity or merger of Developer with another entity or a lease with a resident of the Minimum Improvements. (b) In the event the Developer, upon Transfer of the Development Property or any portion thereof, seeks to be released from its obligations under this Agreement as to the portion of the Development Property that is transferred or assigned, the Authority shall be entitled to require, except as otherwise provided in the Agreement, as conditions to any such release that: (i) Any proposed transferee shall have the qualifications and financial responsibility, in the reasonable judgment of the Authority, necessary and adequate to fulfill the obligations undertaken in this Agreement by the Developer as to the portion of the Development Property to be transferred. (ii) Any proposed transferee, by instrument in writing satisfactory to the Authority shall, for itself and its successors and assigns, and expressly for the benefit of the Authority, have expressly assumed all of the obligations of the Developer under this Agreement as to the portion of the Development Property and Minimum Improvements to be transferred and agreed to be subject to all the conditions and restrictions to which the 24 Developer is subject as to such portion; provided, however, that the fact that any transferee of, or any other successor in interest whatsoever to, the Development Property and Minimum Improvements, or any part thereof, shall not, for whatever reason, have assumed such obligations or so agreed, and shall not (unless and only to the extent otherwise specifically provided in this Agreement or agreed to in writing by the Authority) deprive the Authority of any rights or remedies or controls with respect to the Development Property, the Minimum Improvements or any part thereof or the construction of the Minimum Improvements; it being the intent of the parties as expressed in this Agreement that (to the fullest extent permitted at law and in equity and excepting only in the manner and to the extent specifically provided otherwise in this Agreement) no transfer of, or change with respect to, ownership in the Development Property, the Minimum Improvements or any part thereof, or any interest therein, however consummated or occurring, and whether voluntary or involuntary, shall operate, legally, or practically, to deprive or limit the Authority of or with respect to any rights or remedies on controls provided in or resulting from this Agreement with respect to the Development Property and Minimum Improvements that the Authority would have had, had there been no such transfer or change. In the absence of specific written agreement by the Authority to the contrary, no such transfer or approval by the Authority thereof shall be deemed to relieve the Developer, or any other party bound in any way by this Agreement or otherwise with respect to the Development Property and Minimum Improvements, from any of its obligations with respect thereto. (iii) Any and all instruments and other legal documents involved in effecting the transfer of any interest in this Agreement or the Development Property governed by this Article VIII, shall be in a form reasonably satisfactory to the Authority. In the event the foregoing conditions are satisfied then the Developer shall be released from its obligation under this Agreement, as to the portion of the Development Property that is transferred, assigned, or otherwise conveyed. The restrictions under this Section terminate upon issuance of the Certificate of Completion. Section 8.3. Release and Indemnification Covenants. (a) The Developer releases from and covenants and agrees that the Authority and the governing body members, officers, agents, servants, and employees thereof (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 Development Property or the Minimum Improvements. (b) Except for any willful misrepresentation or any willful or wanton misconduct or negligence of the Indemnified Parties, and except for any breach by any of the Indemnified Parties of their obligations under this Agreement, the Developer agrees to protect and defend the Indemnified Parties, now and 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, maintenance, and operation of the Development Property. 25 (c) Except for any willfull or wanton misconduct or negligence of the Indemnified Parties, the Indemnified Parties shall not be liable for any damage or injury to the persons or property of the Developer or its officers, agents, servants, or employees or any other person who may be about the Development Property or Minimum Improvements. (d) All covenants, stipulations, promises, agreements, and obligations of the Authority contained herein shall be deemed to be the covenants, stipulations, promises, agreements, and obligations of such entity and not of any governing body member, officer, agent, servant, or employee of such entities in the individual capacity thereof. (The remainder of this page is intentionally left blank.) 26 ARTICLE IX Events of Default Section 9.1. Events of Default Defined. The following shall be “Events of Default” under this Agreement and the term “Event of Default” shall mean, whenever it is used in this Agreement, any one or more of the following events: (a) If the Developer or the Authority fails to observe or perform any covenant, condition, obligation, or agreement on its part to be observed or performed under this Agreement. (b) If a receiver, trustee or liquidator of the Developer, or of the Development Property is appointed in any proceeding brought against the Developer or involving the Development Property, and is not discharged within ninety (90) days after such appointment, of if the Developer consents or acquiesces to such appointment; or (c) If the Developer shall: (i) file any petition in bankruptcy or for any reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar relief under the United States Bankruptcy Act or under any similar federal or State law; or (ii) make an assignment for benefit of its creditors; or (iii) admit in writing its inability to pay its debts generally as they become due; or (iv) be adjudicated a bankrupt or insolvent. Section 9.2. Remedies on Default. Whenever any Event of Default referred to in Section 9.1 hereof occurs, the non-defaulting party may exercise its rights under this Section 9.2 after providing thirty (30) days ’ written notice to the defaulting party of the Event of Default, but only if the Event of Default has not been cured within said thirty (30) days or, if the Event of Default is by its nature incurable within thirty (30) days, the defaulting party does not provide assurances reasonably satisfactory to the non-defaulting party that the Event of Default will be cured and will be cured as soon as reasonably possible: (a) Suspend its performance under the Agreement until it receives reasonably satisfactory assurances that the defaulting party will cure its default and continue its performance under the Agreement. (b) Upon a default by the Developer, the Authority may suspend payments under the TIF Note or terminate the TIF Note and the TIF District, subject to the provisions of Section 9.3 hereof. 27 (c) Take whatever action, including legal, equitable, or administrative action, which may appear necessary or desirable to collect any payments due under this Agreement, or to enforce performance and observance of any obligation, agreement, or covenant of the Developer or the Authority under this Agreement. Section 9.3. Termination or Suspension of TIF Note. After the Authority has issued its Certificate of Completion for the Minimum Improvements, the Authority may exercise its rights under Section 9.2(c) hereof only for the following Events of Default: (a) if the Developer fails to pay real estate taxes or assessments on the Development Property or any part thereof when due, and such taxes or assessments shall not have been paid, or provision satisfactory to the Authority made for such payment, within thirty (30) days after written demand by the Authority to do so; or (b) if the Developer fails to comply with Developer’s obligation to cause such improvements to be maintained, preserved and kept with the appurtenances and every part and parcel thereof, in good repair and condition, pursuant to Sections 4.1 and 5.1(d) hereof; provided that, upon Developer’s failure to comply with Developer’s obligations under Sections 4.1 or 5.1(d) hereof, if uncured after thirty (30) days’ written notice to the Developer of such failure, the Authority may only suspend payments under the TIF Note until such time as Developer complies with said obligations. If the Developer fails to comply with said obligations for a period of eighteen (18) months, the Authority may terminate the TIF Note and the TIF District; or (c) if the Developer fails to comply with the income restrictions or to deliver annual rent and income reports as provided in Sections 4.5 and 4.6 hereof; provided that, upon the Developer’s failure to provide annual reports, if uncured after thirty (30) days’ written notice to the Developer of such failure, the Authority may only suspend payments under the TIF Note until such time as the Developer delivers said reports. If the Developer fails to deliver rent and income reports for a period of six months following the date such reports are due after written notice to the Developer of such failure, the Authority may terminate the TIF Note and the TIF District. Section 9.4. No Remedy Exclusive. No remedy herein conferred upon or reserved to any party 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 Authority 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 Implied 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. 28 Section 9.6. Attorneys’ Fees. Whenever any Event of Default occurs and if the Authority 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 Developer under this Agreement, the Developer agrees that it shall, within ten (10) days of written demand by the Authority, pay to Authority the reasonable fees of such attorneys and such other reasonable expenses so incurred. (The remainder of this page is intentionally left blank.) 29 ARTICLE X Additional Provisions Section 10.1. Conflict of Interests; Representatives Not Individually Liable. The Authority and the Developer, to the best of their respective knowledge, represent and agree that no member, official, or employee of the Authority shall have any personal interest, direct or indirect, in the Agreement, nor shall any such member, official, or employee participate in any decision relating to the Agreement that affects his personal interests or the interests of any corporation, partnership, or association in which he, directly or indirectly, is interested. No member, official, or employee of the Authority shall be personally liable to the Developer, or any successor in interest, in the event of any default or breach by the Authority for any amount that may become due to the Developer or successor or on any obligations under the terms of the Agreement. Section 10.2. Equal Employment Opportunity. The Developer, for itself and its successors and assigns, agrees that during the construction of the Minimum Improvements provided for in the Agreement it will comply with all applicable federal, state and local equal employment and non- discrimination laws and regulations. Section 10.3. Restrictions on Use. The Developer agrees that, prior to the Maturity Date, the Developer, and such successors and assigns, shall use the Development Property solely for the development of residential rental housing in accordance with the terms of this Agreement, and shall not discriminate upon the basis of race, color, creed, sex or national origin in the sale, lease, or rental or in the use or occupancy of the Development Property or any improvements erected or to be erected thereon, or any part thereof. Section 10.4. 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 10.5. Notices and Demands. Except as otherwise expressly provided in this Agreement, a notice, demand, or other communication under the Agreement by either party to the other shall be sufficiently given or delivered if it is dispatched by registered or certified mail, postage prepaid, return receipt requested, or delivered personally, to the following addresses (or to such other addresses as either party may notify the other): To Developer: Lyngblomsten Senior Housing, Inc. [Address] Attn: ___________________ To Authority: Lino Lakes Economic Development Authority 600 Town Center Parkway Lino Lakes, Minnesota 55014 Attn: Executive Director 30 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. Recording. The Authority may record this Agreement and any amendments thereto with the County recorder or registrar of titles, as applicable. The Developer shall pay all costs for recording. Section 10.8. Amendment. This Agreement may be amended only by written agreement approved by the Authority and the Developer. Section 10.9. Authority Approvals. Unless otherwise specified, any approval required by the Authority under this Agreement may be given by the Authority Representative, except that final approval of issuance of the TIF Note shall be made by the Board of the Authority. Section 10.10. Termination. This Agreement terminates on the Termination Date. Within 30 days after the Termination Date, the Authority will deliver to Developer a written release in recordable form satisfactory to Developer, evidencing termination of this Agreement. This obligation survives the expiration or earlier termination of this Agreement. Section 10.11. Choice of Law and Venue. This Agreement shall be governed by and construed in accordance with the laws of the State. Any disputes, controversies, or claims arising out of this Agreement shall be heard in the State or federal courts of Minnesota, and all parties to this Agreement waive any objection to the jurisdiction of these courts, whether based on convenience or otherwise. (The remainder of this page is intentionally left blank.) S-1 IN WITNESS WHEREOF, the Authority and the Developer have caused this Contract for Private Development to be duly executed by their duly authorized representatives as of the date first above written. LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY By: Its: President By: Its: Executive Director STATE OF MINNESOTA ) ) SS. COUNTY OF ANOKA ) The foregoing instrument was acknowledged before me this ____ day of _____________, 2019, by _______________________, the President of the Lino Lakes Economic Development Authority, a public body corporate and politic under the laws of the State of Minnesota, on behalf of the Authority. ____________________________________ Notary Public STATE OF MINNESOTA ) ) SS. COUNTY OF ANOKA ) The foregoing instrument was acknowledged before me this ____ day of __________, 2019, by Jeff Karlson, the Executive Director of the Lino Lakes Economic Development Authority, a public body corporate and politic under the laws of the State of Minnesota, on behalf of the Authority. ____________________________________ Notary Public S-2 Execution page of the Developer to the Contract for Private Development, dated as of the date and year first written above. LYNGBLOMSTEN SENIOR HOUSING, INC. By: Name: Its: STATE OF MINNESOTA ) ) SS. COUNTY OF ANOKA ) The foregoing instrument was acknowledged before me this ____ day of ____________, 2019, by _____________________, the President of Lyngblomsten Senior Housing, Inc., a Minnesota nonprofit corporation, on behalf of the Developer. ____________________________________ Notary Public A-1 EXHIBIT A DEVELOPMENT PROPERTY Insert legal descriptions of: Parcel 1 (17 acres for Minimum Improvements) Parcel 2 (liquor store) Parcel 3 (insurance business) Parcel 4a, 4b, and 4c (49 Club) Parcel 5 (House on County Road J West) B-1 EXHIBIT B CERTIFICATE OF COMPLETION The undersigned hereby certifies that Lyngblomsten Senior Housing, Inc. (the “Developer”), has fully complied with its obligations under Articles III and IV of that document titled “Contract for Private Development,” dated _______________, 2019 (the “Agreement”), between the Lino Lakes Economic Development Authority (the “Authority”) and the Developer, with respect to construction of the Minimum Improvements in accordance with Article IV of the Agreement, and that the Developer is released and forever discharged from its obligations with respect to construction of the Minimum Improvements under Articles III and IV of the Agreement. Dated: _______________, 20___. LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY By Authority Representative C-1 EXHIBIT C INFRASTRUCTURE IMPROVEMENTS TO BE CONSTRUCTED BY DEVELOPER The Developer shall be responsible for constructing, installing, and/or paying for the following infrastructure improvements related to the Minimum Improvements: • Entry monument sign at Southeast quadrant of Development Property with provision for City of Lino Lakes entrance sign • Construction of County Road turn lane improvements, as shown on approved PUD development stage plan, subject to review and modification by City and/or County • Relocation of Xcel power lines - relocated lines will be relocated underground • Construction of public road (as shown on preliminary plat) to County Road J, installation of all utilities, and complete grading D-1 EXHIBIT D LAND DEDICATION BY DEVELOPER The Developer shall provide the following right-of-way or easements for the Infrastructure Improvements: • Dedicate on plat all required County Road right-of-way to public at no cost • Provide public utility easement for sanitary sewer, lift station, and water main across Parcel 5 (as described in EXHIBIT A) and Parcel 4a (as described in EXHIBIT A) • Provide County and City right-of-way over Parcel 5 as necessary for realignment of public road E-1 EXHIBIT E FORM OF TIF NOTE UNITED STATE OF AMERICA STATE OF MINNESOTA COUNTIES OF ANOKA No. R-1 $3,218,000 LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY TAX INCREMENT REVENUE NOTE SERIES 20___ Date Rate of Original Issue 5.00% __________ The Lino Lakes Economic Development Authority (the “Authority”), for value received, certifies that it is indebted and hereby promises to pay to Lyngblomsten Senior Housing, Inc., or registered assigns (the “Owner”), the principal sum of $3,218,000 and to pay interest thereon at the rate of 5.00% per annum, as and to the extent set forth herein. 1. Payments. Principal and interest (the “Payments”) shall be paid commencing on August 1, 2022, and each February 1 and August 1 thereafter to and including February 1, 2031 (the “Payment Dates”), in the amounts and from the sources set forth in Section 3 herein. Payments are payable by mail to the address of the Owner or such other address as the Owner may designate upon thirty (30) days’ written notice to the Authority. Payments on this Note are payable in any coin or currency of the United States of America which, on the Payment Date, is legal tender for the payment of public and private debts. 2. Interest. No interest shall accrue on this Note. 3. Available Tax Increment. Payments on this Note are payable on each Payment Date solely from and in the amount of “Available Tax Increment,” which shall mean, on each Payment Date, ninety-five percent (95%) of the Tax Increment attributable to the Development Property (defined in the Agreement) and paid to the Authority by Anoka County, Minnesota in the six months preceding the Payment Date, all as such terms are defined in the Contract for Private Development between the Authority and the Owner, as the developer, dated _____________, 2019 (the “Agreement”). Available Tax Increment shall not include any Tax Increment if, as of any Payment Date, there is an uncured Event of Default under the Agreement. E-2 The Authority shall have no obligation to pay principal of and interest on this Note on each Payment Date from any source other than Available Tax Increment, and the failure of the Authority to pay the entire amount of principal or interest on this Note on any Payment Date shall not constitute a default hereunder as long as the Authority pays principal and interest hereon to the extent of Available Tax Increment. The Authority shall have no obligation to pay the unpaid balance of principal or accrued interest that may remain after the final Payment on February 1, 2031. 4. Default. If on any Payment Date there has occurred and is continuing any Event of Default under the Agreement, the Authority may withhold from payments hereunder under all Available Tax Increment. If the Event of Default is thereafter cured in accordance with the Agreement, the Available Tax Increment withheld under this Section shall be deferred and paid, without interest thereon, on the next Payment Date after the Event of Default is cured. If the Event of Default is not timely cured, the Authority may terminate this Note by written notice to the Owner in accordance with the Agreement. 5. Optional Prepayment. The principal sum and all accrued interest payable under this Note is prepayable in whole or in part at any time by the Authority without premium or penalty. No partial prepayment shall affect the amount or timing of any other regular payment otherwise required to be made under this Note. 6. Termination. At the Authority’s option, this Note shall terminate and the Authority’s obligation to make any payments under this Note shall be discharged upon the occurrence of an Event of Default on the part of the Developer as defined in Section 9.1 of the Agreement, but only if the Event of Default has not been cured in accordance with Section 9.2 of the Agreement. 7. Nature of Obligation. This Note is the sole note of an issue in the total principal amount of $3,218,000 all issued to aid in financing certain Senior Building Costs (as defined in the Contract) of a housing development undertaken pursuant to Minnesota Statutes, 469.090 through 469.1082, as amended, and is issued pursuant to an authorizing resolution (the “Resolution”) duly adopted by the Authority on July 8, 2019, and pursuant to and in full conformity with the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Sections 469.174 through 469.1794, as amended. This Note is a limited obligation of the Authority which is payable solely from Available Tax Increment pledged to the payment hereof under the Resolution. This Note and the interest hereon shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including, without limitation, the Authority. Neither the State of Minnesota, nor any political subdivision thereof shall be obligated to pay the principal of or interest on this Note or other costs incident hereto except out of Available Tax Increment, and neither the full faith and credit nor the taxing power of the State of Minnesota or any political subdivision thereof is pledged to the payment of the principal of or interest on this Note or other costs incident hereto. 8. Estimates of Available Tax Increment. Any estimates of Tax Increment prepared by the Authority or its financial advisors in connection with the Available Tax Increment and the E-3 Agreement are for the benefit of the Authority only, and are not intended as representations on which the Developer may rely. THE AUTHORITY MAKES NO REPRESENTATION OR WARRANTY THAT THE AVAILABLE TAX INCREMENT WILL BE SUFFICIENT TO PAY THE PRINCIPAL OF AND INTEREST ON THIS NOTE. 9. Registration and Transfer. This Note is issuable only as a fully registered note without coupons. As provided in the Resolution, and subject to certain limitations set forth therein, this Note is transferable upon the books of the Authority kept for that purpose at the principal office of the Executive Director of the Authority, by the Owner hereof in person or by such Owner’s attorney duly authorized in writing, upon surrender of this Note together with a written instrument of transfer satisfactory to the Authority, duly executed by the Owner. Upon such transfer or exchange and the payment by the Owner of any tax, fee, or governmental charge required to be paid by the Authority with respect to such transfer or exchange, there will be issued in the name of the transferee a new Note of the same aggregate principal amount, bearing interest at the same rate and maturing on the same dates. This Note shall not be transferred to any person other than an affiliate, or other related entity, of the Owner unless the Authority has been provided with an investment letter in a form substantially similar to the investment letter submitted by the Owner or a certificate of the transferor, in a form satisfactory to the Authority, that such transfer is exempt from registration and prospectus delivery requirements of federal and applicable state securities laws. 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 exist, to happen, and to be performed in order to make this Note a valid and binding limited obligation of the Authority according to its terms, have been done, do exist, have happened, and have been performed in due form, time and manner as so required. IN WITNESS WHEREOF, the Board of Commissioners of the Lino Lakes Economic Development Authority have caused this Note to be executed with the manual signatures of its President and Executive Director, all as of the Date of Original Issue specified above. LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY President Executive Director E-4 REGISTRATION PROVISIONS The ownership of the unpaid balance of the within Note is registered in the bond register of the Executive Director, in the name of the person last listed below. Date of Registration Registered Owner Signature of Executive Director Lyngblomsten Senior Housing, Inc. Federal ID #_____________ F-1 EXHIBIT F FORM OF INVESTMENT LETTER To the Lino Lakes Economic Development Authority Attention: Executive Director Dated: ______________, 20__ Re: Tax Increment Revenue Note, Series 20__ The undersigned, as purchaser of $_________ in principal amount of the above-captioned Tax Increment Revenue Note, Series 20___ (the “Note”), approved pursuant to Resolution No. _________, adopted by the Board of Commissioners of the Lino Lakes Economic Development Authority (the “Authority”) on ________, 20__ (the “Resolution”), hereby represent to you and to Kennedy & Graven, Chartered, Minneapolis, Minnesota, as special counsel to the Authority, as follows: 1. We understand and acknowledge that the TIF Note is delivered to the Purchaser on this date pursuant to the Resolution and the Contract for Private Development, dated _____________, 2019 (the “Agreement”), between the Authority and Lyngblomsten Senior Housing, Inc., a Minnesota limited liability company. 2. The TIF Note is payable as to principal and interest solely from Available Tax Increment pledged to the TIF Note, as defined therein. 3. We have sufficient knowledge and experience in financial and business matters, including purchase and ownership of municipal obligations, to be able to evaluate the risks and merits of the investment represented by the purchase of the above-stated principal amount of the TIF Note. 4. We acknowledge that no offering statement, prospectus, offering circular or other comprehensive offering statement containing material information with respect to the Authority and the TIF Note has been issued or prepared by the Authority, and that, in due diligence, we have made our own inquiry and analysis with respect to the Authority, the TIF Note and the security therefor, and other material factors affecting the security and payment of the TIF Note. 5. We acknowledge that we have either been supplied with or have access to information, including financial statements and other financial information, to which a reasonable investor would attach significance in making investment decisions, and we have had the opportunity to ask questions and receive answers from knowledgeable individuals concerning the Authority, the TIF Note and the security therefor, and that as reasonable investors we have been able to make our decision to purchase the above-stated principal amount of the TIF Note. F-2 6. We have been informed that the TIF Note (i) is not being registered or otherwise qualified for sale under the “Blue Sky” laws and regulations of any state, or under federal securities laws or regulations, (ii) will not be listed on any stock or other securities exchange, and (iii) will carry no rating from any rating service. 7. We acknowledge that the Authority and Kennedy & Graven, Chartered, as special counsel to the Authority, have not made any representations or warranties as to the status of interest on the TIF Note for the purpose of federal or state income taxation. 8. We represent to you that we are purchasing the TIF Note for our own accounts and not for resale or other distribution thereof, except to the extent otherwise provided in the TIF Note, the Resolution, or any other resolution adopted by the Authority. 9. All capitalized terms used herein have the meaning provided in the Agreement unless the context clearly requires otherwise. 10. The Purchaser’s federal tax identification number is _______________. 11. We acknowledge receipt of the TIF Note on the date hereof. IN WITNESS WHEREOF, the undersigned has executed this Investment Letter as of the date and year first written above. LYNGBLOMSTEN SENIOR HOUSING, INC. By Its G-1 EXHIBIT G COMPLIANCE CERTIFICATE The undersigned officer of Lyngblomsten Senior Housing, Inc. (the “Developer”), does hereby certify that as of the date of this Certificate not less than twenty percent (20%) of the residential units in the senior housing facility, known as _____________, located at ____________________ in Lino Lakes, Minnesota (the “Project”), referred to as the “Senior Building” in the Contract for Private Development, dated ___________________, 2019, between the Lino Lakes Economic Development Authority and the Developer are occupied by individuals whose income is fifty percent (50%) or less of the area median gross income. Attached hereto are the vacancy rate and the income verifications used to establish the above conclusions broken down by unit type and size. Dated this ____ day of _________________, 20___. LYNGBLOMSTEN SENIOR HOUSING, INC. By Its H-1 EXHIBIT H FORM OF MINIMUM ASSESSMENT AGREEMENT THIS MINIMUM ASSESSMENT AGREEMENT, made on or as of the ___ day of __________, 2019 (the “Minimum Assessment Agreement”), is by and between the LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY, MINNESOTA, a public body corporate and politic under the laws of the State of Minnesota (the “Authority”), and Lyngblomsten Senior Housing, Inc., a Minnesota limited liability company (the “Developer”). WITNESSETH, WHEREAS, the Authority and the Developer have entered into that certain Contract for Private Development, dated _________, 2019 (the “Contract”), regarding the acquisition of property, the construction of senior housing (the “Minimum Improvements”) to be constructed on property legally described in Exhibit A (the “Development Property”); and WHEREAS, the Authority and the Developer desire to establish a minimum market value for the Development Property and the Minimum Improvements to be constructed thereon, pursuant to Minnesota Statutes, Section 469.177, subdivision 8; and WHEREAS, the Authority and the County Assessor (the “Assessor”) have reviewed the preliminary plans and specifications for the Minimum Improvements and have inspected such improvements; NOW, THEREFORE, the parties to this Minimum Assessment Agreement, in consideration of the promises, covenants and agreements made by each to the other, do hereby agree as follows: 1. All capitalized terms used herein and not otherwise defined have the definition given such terms in the Contract. 2. The minimum market value which shall be assessed for ad valorem tax purposes for the Development Property, together with the Minimum Improvements constructed thereon, shall not be less than $___________ as of January 2, 2021, notwithstanding the progress of construction by such date. [may need multiple parcels listed with different values] 3. The minimum market value herein established shall be of no further force and effect and this Minimum Assessment Agreement shall terminate on the Termination Date. The Authority shall execute a certificate or affidavit upon the occurrence of a termination event referred to in this Section 3 indicating that this Minimum Assessment Agreement has terminated and shall supply such certificate to the Developer for recording. Notwithstanding anything to the contrary in this Minimum Assessment Agreement or in the Contract, this Minimum Assessment Agreement shall not terminate prior to the payment in full of Development Property Purchase Price. 4. This Minimum Assessment Agreement shall be promptly recorded by the Authority. The Developer shall pay all costs of recording. H-2 5. Neither the preambles nor provisions of this Minimum Assessment Agreement are intended to, nor shall they be construed as, modifying the terms of the Contract. 6. This Minimum Assessment Agreement shall inure to the benefit of and be binding upon the successors and assigns of the parties. 7. Each of the parties has authority to enter into this Minimum Assessment Agreement and to take all actions required of it, and has taken all actions necessary to authorize the execution and delivery of this Minimum Assessment Agreement. 8. In the event any provision of this Minimum Assessment Agreement shall be held invalid and unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof. 9. The parties hereto agree that they will, from time to time, execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered, such supplements, amendments and modifications hereto, and such further instruments as may reasonably be required for correcting any inadequate, or incorrect, or amended description of the Development Property or the Minimum Improvements or for carrying out the expressed intention of this Minimum Assessment Agreement. 10. This Minimum Assessment Agreement may not be amended nor any of its terms modified except by a writing authorized and executed by all parties hereto. 11. This Minimum Assessment Agreement may be simultaneously executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. 12. This Minimum Assessment Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota. H-3 IN WITNESS WHEREOF, the Authority and the Developer have caused this Minimum Assessment Agreement to be executed in their respective corporate names by their duly authorized officers, all as of the date and year first written above. LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY, MINNESOTA By Its President By Its Executive Director STATE OF MINNESOTA ) ) SS. COUNTY OF ANOKA ) The foregoing instrument was acknowledged before me this ____________, 2019, by __________________, the President of the Lino Lakes Economic Development Authority, Minnesota, on behalf of the Authority. Notary Public STATE OF MINNESOTA ) ) SS. COUNTY OF ANOKA ) The foregoing instrument was acknowledged before me this ____________, 2019, by Jeff Karlson, the Executive Director of the Lino Lakes Economic Development Authority, Minnesota, on behalf of the Authority. Notary Public H-4 Signature page of the Developer to the Minimum Assessment Agreement, dated as of the date and year first written above. LYNGBLOMSTEN SENIOR HOUSING, INC. By Its STATE OF MINNESOTA ) ) SS. COUNTY OF __________ ) The foregoing instrument was acknowledged before me this _________________, 2019, by _________________, the ________________ of Lyngblomsten Senior Housing, Inc., a Minnesota nonprofit corporation, on behalf of the Developer. Notary Public H-5 CERTIFICATION BY COUNTY ASSESSOR The undersigned, having reviewed the plans and specifications for the improvements to be constructed and the market value assigned to the land upon which the improvements are to be constructed, hereby certifies as follows: the undersigned Assessor, being legally responsible for the assessment of the above described property, hereby certifies that the market values assigned to the land and improvements are reasonable. ASSESSOR FOR ANOKA COUNTY By STATE OF MINNESOTA ) ) ss COUNTY OF ANOKA ) The foregoing instrument was acknowledged before me this ___ day of ______________, 2019, by _________________, the County Assessor of Anoka County. Notary Public H-6 EXHIBIT A LEGAL DESCRIPTION [Insert Legal Description of parcels subject to MAA]