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01/23/2018
LAUDERDALE CITY COUNCIL MEETING MINUTES Lauderdale City Hall 1891 Walnut Street Lauderdale, MN 55113 Page 2 of 3 January 9, 2018 Discussion/Action Items A. Resolution Finding that Modification to the Development Program and Tax Increment Financing Plan Conform to the General Plans for Development and Redevelopment of the City — Resolution No. 010918B Butkowski explained that the resolution is the next step in establishing a tax increment financing district in order to secure funding to complete the purchase the Chinese Christian Church. Councilor Moffatt moved to adopt Resolution 010918B — A Resolution Finding that a Modification to the Development Program for Development District No. 1 and a Tax Increment Financing Plan for Tax Increment Financing District No. 1-2 Conform to the General Plans for the Development and Redevelopment of the City. The motion was seconded by Councilor Grove and carried unanimously. B. Memorandum of Understanding to Amend Union Agreements with AFSCME Council 5 Staff has been in the process of setting up a Health Care Savings Plan (HCSP) with the Minnesota State Retirement System (MSRS). Language regarding the HCSP in the personnel policy and the union contracts needs to be specific and the language in both also needs to match. Staff has been working on complying with the regulatory language required by MSRS. Councilor Dolphin moved and seconded by Councilor Grove to approve the Memorandum of Understanding between the City of Lauderdale and AFSCME, COUNCIL 5, ALF -CIO, as presented, retroactive to January 1, 2016. Motion carried unanimously. C. Committee Assignments and Designations The Council determines committee assignments and other appointments at the first meeting of the year. Based on the discussion, assignments for 2018 will remain the same with the exceptions of: League of Minnesota Cities representation will switch from Councilor Grove to Councilor Moffatt and the North Suburban Communications Commission representation will switch from Councilor Dains to Councilor Dolphin with Dains as the alternate. Councilor Dolphin moved to adopt committee assignments and designations as discussed. The motion was seconded by Councilor Grove and carried unanimously. Additional Items A. Interfund Loan Resolution No. 010918E The Interfund Loan Resolution allows the City to transfer money from the 414 Development Fund to a new tax increment financing (TIF) fund being created in connection with the purchase of the Chinese Church. The transferred funds will cover the administrative costs of setting up the TIF District in advance of receiving the proceeds from the bond sale. LAUDERDALE CITY COUNCIL MEETING MINUTES Lauderdale City Hall 1891 Walnut Street Lauderdale, MN 55113 Page 3 of 3 January 9, 2018 Council Dolphin moved and seconded by Councilor Dains to adopt Resolution 010918E — A Resolution Authorizing Internal Loan for Advance of Certain Costs in Connection with Tax Increment Financing District No. 1-2. Motion carried unanimously. Set Agenda for Next Meeting Administrator Butkowski stated that the next council meeting may include an update on jurisdictional change for Roselawn Avenue and Eustis Street, a public hearing on Patsy's Prospect Hill lot split, a public hearing on the modification to the development program for Development District No. 1 and the proposed establishment of Tax Increment Financing District No. 1-2, and a Comprehensive Plan update. Work Session A. Opportunity for the Public to Address the City Council Mayor Gaasch opened the floor to anyone in attendance that wanted to address the Council. There being no interested parties to speak, Mayor Gaasch closed the floor. B. Community Development Update Butkowski informed the Council that a purchase agreement for the Chinese Christian Church is being finalized, the claim for the damage to the public works building on Larpenteur is moving slowly, and some residents expressed interest in holding an open house at 1795. Eustis Street after the City takes possession. Adj ournment Councilor Grove moved and seconded by Councilor Moffatt to adjourn the meeting at 8:07 p.m. Motion carried unanimously. Respectfully submitted, Miles Cline Deputy City Clerk CITY OF LAUDERDALE LAUDERDALE CITY HALL 189 1 WALNUT STREET LAUDERDALE, MN 551 13 651-792-7650 651-631-2066 FAx Request for Council Action To: Mayor and City Council From: City Administrator Meeting Date: January 23, 2018 Subject: List of Claims The claims totaling $48,159.31 are provided for City Council review and approval that includes check numbers 25682 to 25701. Accounts Payable Checks by Date - Detail by Check Date User: miles.cline Printed: 1/19/2018 3:31 PM Check No Vendor No Vendor Name Invoice No Description Check Date Reference Check Amount ACH 43 Public Employees Retirement Association PR Batch 50100.01.2018 PERA Coordinated PR Batch 50100.01.2018 PERA Coordinated 01/12/2018 PR Batch 50100.01.2018 PER PR Batch 50100.01.2018 PER Total for this ACH Check for Vendor 43: ACH 44 Minnesota Department of Revenue PR Batch 50100.01.2018 State Income Tax ACH 45 ACH 46 ACH 180 2016-2017 2016-2017 2016-2017 2016-2017 2016-2017 2016-2017 2016-2017 2016-2017 2016-2017 2016-2017 25682 65 15116466 25683 57 012018 01/12/2018 PR Batch 50100.01.2018 Stat Total for this ACH Check for Vendor 44: ICMA Retirement Corporation PR Batch 50100.01.2018 Deferred Comp PR Batch 50100.01.2018 Deferred Comp 01/12/2018 PR Batch 50100.01.2018 Def( PR Batch 50100.01.2018 Def( Total for this ACH Check for Vendor 45: Internal Revenue Service PR Batch 50100.01.2018 FICA Employer Portio: PR Batch 50100.01.2018 FICA Employee Portio PR Batch 50100.01.2018 Federal Income Tax PR Batch 50100.01.2018 Medicare Employee Pc PR Batch 50100.01.2018 Medicare Employer Po 01/12/2018 PR Batch 50100.01.2018 FIC. PR Batch 50100.01.2018 FIC. PR Batch 50100.01.2018 Fed PR Batch 50100.01.2018 Mee PR Batch 50100.01.2018 Mee Total for this ACH Check for Vendor 46: Total for 1/12/2018: Minnesota State Retirement System 01/23/2018 2016-2017 HCSP Payment 2016-2017 HCSP Payment 2016-2017 HCSP Payment 2016-2017 HCSP Payment 2016-2017 HCSP Payment 2016-2017 HCSP Payment 2016-2017, HCSP Payment 2016-2017 HCSP Payment 2016-2017 HCSP Payment 2016-2017 HCSP Payment Allstream Inc. Fax Line Heather Butkowski Mileage Reimbursement Total for this ACH Check for Vendor 180: 01/23/2018 Total for Check Number 25682: 01/23/2018 933.30 1,076.89 2,010.19 624.79 624.79 1,350.09 939.36 2,289.45 1,065.48 1,065.48 1,494.30 249.19 249.19 4,123.64 9,048.07 785.68 223.77 909.83 365.71 340.97 494.34 2,626.95 129.78 1,057.80 1,049.71 7,984.54 51.55 51.55 63.88 AP Checks by Date - Detail by Check Date (1/19/2018 3:31 PM) Page 1 Check No Vendor No Invoice No Vendor Name Description Check Date Reference Check Amount Total for Check Number 25683: 63.88 25684 178 Cartridge World Roseville 01/23/2018 73946 Fax Toner 71.98 25685 2 City of St Paul IN00026782 Labor to Replace LA Decorative Lights 1N00026785 Material to Replace LA Decorative Lights Total for Check Number 25684: 71.98 01/23/2018 3,689.00 10,072.30 Total for Check Number 25685: 13,761.30 25686 38 Croix Oil Company Inc. 01/23/2018 474565 December Fuel 26.82 474565 December Fuel 125.16 474565 December Fuel 26.82 25687 19 Ehlers and Associates Inc 76038 Consulting Services - PA 76039 TIF Consulting Services 25688 60 G & K Services Inc 2277524-12 December Uniforms 2277524-12 December Uniforms Total for Check Number 25686: 178.80 01/23/2018 411.25 6,250.00 Total for Check Number 25687: 6,661.25 01/23/2018 45.88 45.88 Total for Check Number 25688: 91.76 25689 61 Gopher State One Call 01/23/2018 8000513 2018 Annual Facility Operator Fee 50.00 Total for Check Number 25689: 50.00 25690 134 Katrina Joseph 01/23/2018 0072 December legal services 925.00 Total for Check Number 25690: 925.00 25691 179 Kath Heating, Air Conditioning and Electric 01/23/2018 611979 PW Garage Furnace Repair 541.00 Total for Check Number 25691: 541.00 25692 30 League of Minnesota Cities 01/23/2018 267055 2018 Legislative Conference for Cities - MG & . 198.00 Total for Check Number 25692: 198.00 25693 112 Minnesota Pollution Control Agency 01/23/2018 Training 2018 Collection System Operators Conference - 780.00 Total for Check Number 25693: 780.00 25694 12 North Suburban Access Corporation 01/23/2018 17-179 4Q Webstreaming & Archiving 782.93 Total for Check Number 25694: 782.93 AP Checks by Date - Detail by Check Date (1/19/2018 3:31 PM) Page 2 Check No Vendor No Invoice No Vendor Name Description Check Date Reference Check Amount 25695 47 25696 80 003453 25697 155 43736 25698 4 17420 17420 25699 3 348224304 25700 90 9799023134 9799023134 9799023134 25701 74 574942947 574942947 574986952 575002360 575123309 575383880 575506981 575506981 575506981 575506981 Public Employees Insurance Program PR Batch 50100.01.2018 Health Insurance PR Batch 50100.01.2018 Dental Sam's Club Motor oil Seven Corners Printing 4Q2017 Newsletter 01/23/2018 PR Batch 50100.01.2018 Hea PR Batch 50100.01.2018 Den Total for Check Number 25695: 01/23/2018 Total for Check Number 25696: 01/23/2018 Total for Check Number 25697: The Neighborhood Recycling Company Inc 01/23/2018 December Recycling Contract December Revenue Sharing US National Equipment Finance Inc January copier contract Verizon Wireless December Cell Phone December Cell Phone December Cell Phone Xcel Energy 1891 Walnut Street 1891 Walnut Street Larpenteur Bridge Lights 2430 Larpenteur Avenue W December Street Lighting Larpenteur Avenue 1917 Walnut Street 1917 Walnut Street 1885 Fulham Street 1885 Fulham Street Total for Check Number 25698: 01/23/2018 Total for Check Number 25699: 01/23/2018 Total for Check Number 25700: 01/23/2018 Total for Check Number 25701: Total for 1/23/2018: Report Total (25 checks): 2,032.62 116.10 2,148.72 56.22 56.22 643.00 643.00 2,396.16 -57.36 2,338.80 149.00 149.00 32.84 16.43 16.42 65.69 178.30 342.18 44.80 15.61 433.49 56.47 51.85 140.27 96.70 208.15 1,567.82 39,111.24 48,159.31 AP Checks by Date - Detail by Check Date (1/19/2018 3:31 PM) Page 3 LAUDERDALE COUNCIL ACTION FORM Action Requested Consent X Public Hearing Discussion Action Resolution Work Session Meeting Date January 23, 2018 ITEM NUMBER _December Financial Report STAFF INITIAL h► APPROVED BY ADMINISTRATOR DESCRIPTION OF ISSUE AND PAST COUNCIL ACTION: Every month I provide the Council with an updated copy of the city's finances. Following are the revenue, expense, and cash balance reports for December 2017. OPTIONS: STAFF RECOMMENDATION: By approving the consent agenda, the Council acknowledges the city's financial report for December 2017. COUNCIL ACTION: General Ledger Cash Balances User: heather.butkowski Printed: 1/16/2018 3:06:18 PM Period 12 - 12 Fiscal Year 2017 Description Account Beg Bal MTD Debit MTD Credit Current Balance Cash 101-00000-000-10100 -2,318,320.76 449,176.58 550,840.38 -2,419,984.56 Change Fund 101-00000-000-10300 100.00 0.00 0.00 100.00 Cash 226-00000-000-10100 11,049.45 6.42 1,494.22 9,561.65 Cash 227-00000-000-10100 110,418.14 70.99 4,677.43 105,811.70 Cash 401-00000-000-10100 97,841.84 65.69 0.00 97,907.53 Cash 403-00000-000-10100 444,330.57 8,538.84 0.00 452,869.41 Cash 404-00000-000-10100 269,045.21 1,680.33 1,950.00 268,775.54 Cash 405-00000-000-10100 34,341.71 21.53 2,275.00 32,088.24 Cash 414-00000-000-10100 298,442.25 200.37 0.00 298,642.62 Cash 602-00000-000-10100 993,195.35 45,492.04 7,718.59 1,030,968.80 Cash 603-00000-000-10100 353,901.55 13,311.45 10,686.89 356,526.11 Current Assets 294,345.31 518,564.24 579,642.51 233,267.04 Petty Cash 101-00000-000-10200 300.00 0.00 0.00 Petty Cash 300.00 0.00 0.00 300.00 300.00 Investments - Fair Value101-00000-000-10410 2,790,938.97 402,298.85 0.00 3,193,237.82 Adj Investments 2,790,938.97 402,298.85 0.00 3,193,237.82 Grand Total 3,085,584.28 920,863.09 579,642.51 3,426,804.86 GL - Cash Balances (01/16/2018 - 03:06 PM) Page 1 U 00 O en M- vn 0 � U CN,, O 000 O cu oO d 6 co; c: .--� p l O M O M O co..)D� '-i r a,( -2N f O 0'00 I� O • 00 'C o C G) r4 YTD Balance M ONS O VD N CA 000 00 0.0 o 4r, 0 0 000; 0\a\� p v, vl'--�00 p ,.vn 0, 4 VD 00 0 00 M� p VD 0\ N 00 b N Cl VD 0 00 (: 4 CO N 0' 00 d� 00 00 N ti c;1 O— l- O YO M DO 00 00 ,t v'] L--. O 0 VDO\ 0 V0 C-.... DO ci O vi 4 O v1 p 0 VO 06 4 O p 1.CN0Ir--„0 b 000000 0 ch CN 01 4- N N cr r-- M vn '.D in co O\ r -I 'CS 0\ 00 N 00'. O O o0N un O p 1 un u) p CN VD v)MOI— O Cl OOM4O O '.O V) 'Cy \O J r I` ti� CU N O O O 0 0 0 o O N m VD r o O r M Al r O Vl fV M v'1 ,ti., '.0 00 00 M O 74 til . N 74 00 H M 0 0 0 0 0 0 O( 0 0 0 0 0 0 O00000p o OoOoo ,z MO�ONOO O N ,--i OS4O O O I"000 CT O '.00M 0 M O c::400 0'. 0\— + \ v N O '.0 00 N '(0 4 M on Cl VD CN 0 0 00 N y > 0 0 .0 CA a) O U a) cd ”: N W C 0 >, T7 CEC." C4 O . U i. • U y 43, W. cd E W w N N 0 :., N C�'C 9 V) Dr v co ON cV I I, a)) a) i iWcOUO Cc4F~.14Uw O vW N w N n b) k; 'd 3 '� N O M O it � .o O CI)N a) ~ —) �" Q. a) O c3 LD �aaw S.i Account Nu General Fund O O GL - Revenue vs Expense (01/16/2018 - 03:13 PM) \ 0 YTD Balance Current Period 0000 f 2342| \ 00/// § w , \/ @ /@\@ 1-1 ‘.0 \ ' / 0? oo r m M % Cl /S\\ � k/r\ « m_J# 2Q k \@@@ da < 4 d oo @ 000E g aaa k ƒ@S@ A » Cr q 4 00 el o -et k \ k 00 ¥ / j f 773 ( g ( § j ) • \ •). \ \= ae ec 7 §§,\ ( m@//g m ` 0 ( §(\7 t co ...• / § + Q C. g m=zou m Q / 4) . \K \/ aK v.-- 0 \ ® 00%00\ % \�w Cep \0 QP =QQa CS j GL - Revenue vs Expense (01/16/2018 - 03:13 PM) Current Period O M_ 0000 l�04 OI X4:2 M e~ -I O es,i O N M H v) O M VD in 0 N p Ori ,-, O vO „, M VO vl N M 1-1 M ,--, M ri 0 'r O 00 .a d O o0c M 00 a)N o0 00 ,4- ,I. N N rc M 00 O V N M M 00 H H O I Lel CD N OO My 00 0 -po N \ r M MN N O O O O O O O OI O O '/co d 00 O co� b (`1 MO \D N M —I vi�O M 7 N M V) 71 m C or) >..o °)U a C4 o to E d= > 0) d o a>q U 4 �, O iO 4 O i� •. y U 0> h a) W fa, NO UCA U y C3. 4 1:1,L 0) yya) a) k a) 01 k a) A g g 4 g Wac4o0 W c4 GL - Revenue vs Expense (01/16/2018 - 03:13 PM) \ U Q YTD Balance 0 / @) 0 0 @| @ C. aaa w caa 3 R @/@ N \\@ A a a| 2 = 3| C ƒ / s » 1140 CN I or -o 0 \CD \| \ § �/» \ 00N m 2 C H m / ® \ \ r-,(1) \$ CD 3(:,i,--, / _ / a& 2 \ \f / \ \C) \ f5 _ _ \\\\ \ \ 0 Q @ \E5 0 / caa d § 000oI 7 0051 \ \ / \ 6 \ 6/6 j k § [ \ . >Go / I. a4>0 0 cn 2 key /\ c \A- 0 (8( '//z3 , / .e 0 ; \)&Q\ ) m/Q\ § cage/ a.> \ƒ�/ \ §2/\3 g 4020 •4 General Capital Projects \ GL - Revenue vs Expense (01/16/2018 - 03:13 PM) YTD Balance Current Period • 5\@ q \@ 3�d A cd < @ 7 @) \ 0 5| $ 6 06 d o 6o e 00 \ y @ @ \ \ « { 0 > 5| $ 0 @| 0 0 ca£ k o d e CO \f N / f© A % 00 7 \| 7 0 \) 0 7 %c 00 do d oo / q G a 00 @@\| 0 \/| @ @ 6 0 o 3 O o % / c o e 0 & f ) /§§)) S. [\ • L\ Po ct �� » \ \ ({\ \) a /)\]\ ( §\\ § cu j e \tUm2 t \/ƒ \ / 0.., «k/\3 k 4Qo 4 \ \ © 7 1 1 \K W \ \§«p \ \X �/ ._._.0 7, - ��\ \\ 4 nS JCD P /== GL - Revenue vs Expense (01/16/2018 - 03:13 PM) w Utf O O O 00 O I O O V1 "' d' O r{ 0 0 O O 00 O - p( O O O p l O ON 0000 ▪ O OMO O pN O M Fw Rf N e'11 01 00 YTD Balance Current Period - p I H 0 0 p I O CT O p O O O p O O� .--i p eel O O p O 00 coo cOMO o( -NI N M '71-^ el' V \O N r-+ - M l O O Op O 0 O 0 O 60 O ‘.O p 0 0 p 0 0 O OI O p 0 0 o O O O O O O (V N 00 00 \O 0 al 5 IJ Cl) � 0v, a) a 0 .� a c d p. .'r y d a p, p a WrnUO W Park Capital Projects v 0 GL - Revenue vs Expense (01/16/2018 - 03:13 PM) 0 Q O p O O O O O p l O O O O ON C) ON ri o Nn N ON ON O; p I O p M O rt ct N N Cn 'fl 0 I vMi_ o O - s N N N O O O O O O " O p l O d O Rosehill Tax Increment GL - Revenue vs Expense (01/16/2018 - 03:13 PM) y o o N o O 1` -, iC °Oo 0 0 l o in o 7 VD 00 VD OO 00 O VD ,Mi O efi ,M -i O O p r.4 -1O ,-1 m M O O M 00 00 '-+ ,--i Qi 00 VD VD M 00 O O O O O 00 00 O p M O o VD r•1 1-1 r- CDI O C- m 0 M Q O I M O O O O O O 0 N N CD O O OI O O O O O O O O O V1 00 O 0 00 to N N oTr U -0 cu N 0 °' WI 0,4 d C4 OJ o U • 91 0 U y I. U 41 P, Ax o x woo w 3— o co : o" 0 v Cl o ami 0 0 �aaw Development 1-1 rt 71. GL - Revenue vs Expense (01/16/2018 - 03:13 PM) U O O O O U O OI co O O O O O O p O O p O O O IOOpIOO0 O p a:: O O O O p O O 7-1 as YTD Balance Current Period G." '6 U count Number p p I p p I O O O O O O O O O p p0 O O I O O 0 0 O O p O O O p I O O p l O O O p O O p O d 0 0 E R L) o > o y a) C 0 d g O C 0 cy a �=9w . 0 ('T a) al O Li.) 0 '5 O a) a) cz W 0 U W g Housing Redevelopment GL - Revenue vs Expense (01/16/2018 - 03:13 PM) 44.> G§| @@| \@GJ\%m / \O \Q6 6A Qk \ N 0 $ 0) caro M Cr« c m N. u c�go 71- s: «®f&c e § �a0 0- § k t— & w 5 / 3 f § - C•) 7r / YTD Balance Current Period caro >« c m N '10 \®into s dwVDd {/®a 2 \f \ @#9/• $ 3 %c 3 / $ © R « M _ N @%\\| % /7\5\ aCC j $p\ac d1-... VD R / $ & ® 000Q0 o 0 0 0 0 0 gccc o gog0c § _ /\� / %\/6� 00 4 / /� / cc ƒ / / 0 \ ( 2 & / , \ / k ( 440ƒ2/\ 0) t\§Rƒ /a \ k 4=00020 m Sanitary Sewer \ GL - Revenue vs Expense (01/16/2018 - 03:13 PM) O0I r v'�ON0 0 N N rn o t� a, r1 0 0 0 a 0 C O 7 c en cri O p 00 'et on co 7.0 Cl' 00I000 e4u.0 1 ,--(00000 pI N O M N -. N O O N O [.. VD N M 7 N O\ ,-; - U CD -,O00 N 00,,O � c 0 00 - O M - 00 N O O r in Ctt ON (4 0o et (.0 s'C V; ga � � .�-+ m 0000 N A•--- /.0 OOO OI O �4 v) 0OI �1' �G O N N O Q O D V D O O M '1 •TI 0 0 V� d N N N O O N N M N tI O\ b m M vi d' O N Cr 0) Lw f� Z 00001 O O O O O O O O O O O O O O O O O O O O .tP 0 0 0 p O �D 0 0 0 p v6 7 CD CD tOA ��---� M H 4- V1 v v M N- 00 00 CO v) N r v, 0 N 0ks.i, 4) N N (0 w .0 a4 N y U O '(--5!) 0 to ( b Cg bq N c(00 £. (/J •U sem. U � 0 LO a) cG V] N _, y 0>� 0 ��� 40oN A taa Cun c.> mo ° > 4a. a.a 4 4 d o tx Wav)000 W 7t In 3 1-1 O (Cr; J. N 40 5o ~ N Z 0 N V M M ,,waa -<Ce Storm Water GL - Revenue vs Expense (01/16/2018 - 03:13 PM) opl opppl 0 O O O 0 0 0 p O p pp ( c::) opo O O O p C 0 0 N dM -, M p pp)O O cA O p O N 0 0 N — ri M 00 00 N N N N p l 0 0 0 O O © p O 0 0 0 0 O O p pp l O o O I O O O p O 0 0 0 p © C al o G 0 U o -d bA 0• U T • • c03 (6 > N •l(L, dV .j O yN �A " DHC. C .OwwaO Cl wOO ww bA In 00 CO O 7 O 7 00 O 00 M ‘ctC\ N \D 111 MVO\O Q\bN 00000 00 M tI� 1--+ CT N r O � 'Cr O O M t --r 0 Revenue Total GL - Revenue vs Expense (01/16/2018 - 03:13 PM) LAUDERDALE COUNCIL ACTION FORM Action Requested Consent Public Hearing Discussion Action Resolution Work Session X X X X Meeting Date January 23, 2018 ITEM NUMBER Plat Approval STAFF INITIAL _JB APPROVED BY ADMINISTRATOR SUBDIVISION APPLICATION Pat White, 1745 Fulham Street, has applied to re -plat the property to create one (1) new residential lot . The county engineer reviewed the preliminary plat, as required, and found it acceptable as proposed. City Attorney Ron Batty has also reviewed the preliminary and final plat. Current lot size: 180' W x 133' L Proposed Lot 1: 60' W x 133' L (new north lot) Proposed Lot 2: 120' W x 133' L (south lot with existing house and garage) Drainage and utility easements have been requested along the front and sides of both properties. An existing drainage and utility easement already exists along the rear of both properties. PLAT OPINION Brian Lehinger of Kennedy & Graven has provided a Plat Opinion, which is attached. There are two main issues yet to be resolved regarding the property subject to the plat of Patsy's Prospect Hill. The first involves the Torrens portion of the property, and re- lates to certain interests that appear on the certificate of title that no longer affect the property — mortgages that have been satisfied in Abstract, and the interest of Robert White. The applicant's title company is in the process of clearing those issues. The second issue has to do with a potential ambiguity in the legal description of the Abstract portion of the property. Because this portion of the property includes sections that are to be dedicated to the city for use as drainage and utility easements, we are requiring the issuance of a title insurance policy that covers against any claim based on the ambiguity. A pro forma policy has been issued, and a final policy must be sub- mitted prior to final plat approval. PUBLIC HEARING A public hearing is required for approval. Along with a published notice, properties ad- jacent to the subject property were notified of tonight's public hearing. COUNCIL ACTION REQUESTED Option 1: In the event all of the above-mentioned issues are resolved to the city's satisfaction prior to the approval meeting, city will grant approval for both the prelimi- nary plat and the final plat. A simple majority is required to adopt the resolution. Motion to adopt Resolution 012318A Granting Final Plat Approval For Patsy's Pro- spect Hill Option 2: If any issue remains unresolved, city will not grant final approval, but will grant preliminary approval. Preliminary approval will contain as a condition of final plat approval a requirement that any outstanding issue described above be resolved. Motion to grant preliminary plat approval for Patsy's Prospect Hill, with the condition that any outstanding issues are resolved prior to final plat approval. ENCLOSURES Land Use Application Preliminary Plat Final Plat Plat Opinion 3.50+0400 N _' (>a11 59•5L 3.60.01.0 N TM 133.0. 30 WU'L 107 30 3.115. (caea) 15'5L 3..50.61.0 S —✓ -7Z'xn si TIM 030003 0011,30 101/1337Z. gro0,77/1 % .133 LS W VH7F1J (9ZI '0N 4 V02I AI Nil0D) 0 11s'09 090• 01 I N O9 47'43"E I33.4O r hall[ Wain)) 1331:110 133.0. e0 3,11-1.10. n 5£'601 3.50.01.0 0--- X 1,331.55, M111111131.1..w 13 01 JO ' 107 3Nn 1sr3 X11 x11u 5Q"z37ivnva 3Nn10 W 6,--_ MOMS 301 30 31111.11----) 1 11...31. r avonvn u s•c1� F un00•611 n' -1(16sns .W ..3sa 53x1 u5,3s •li 00 ==='-1— �!' ei £L•6G1 3.50.91.0 N 1 R1 cv lii°i tz- s 113N1303 ----- Huns __ 10•659 3.50.6400 N — �- 00v'6s'1'L1 •33S Y,MS 30 00/10003 hti i e"\>> � <, l J , TUN 1333500.1 30 1.11f. t 101 30.0. 119.0 ----.� • LY 'c LY CIA KURTH SURVEYING, INC. 4111119 1 10 1 11122 t.4USBIO3 All., L1-0,11 :A.' ewe 0 99 :3100 Md X.J99U!u1I Id 0011..1103530 1.3300 11IH 103dS(Md S,AS1Vd .1.030000 AlIHM ,kSIVd ..11.011D Nowolopulmumumnsolem 211VA-1 122,224(1211OEV1 21.11-19/121.1111081 12,112 .2120112 21010100 .1.2 .12 MO2211110 622, 'OMI 'OMIAMAHOS HIHJIM PRELIMINARY PLAT OF: PATSY'S PROSPECT Drainage and Ullilly 0.101.111l 10 & U ESNS) Propound Sanitary Sawa/AS.1,i., Plait Direction Buried Natural Gail Main i g 1 w9091 (133MiSID3dSOYd) ? "antnomm E n A'z 2 011 I \ r13 0 •I0 Member introduced the following resolution and moved its adoption: CITY OF LAUDERDALE RESOLUTION NO. 012318A RESOLUTION GRANTING FINAL PLAT APPROVAL FOR PATSY'S PROSPECT HILL WHEREAS, Patsy L. White (the "Applicant") has requested preliminary and final plat approval for Patsy's Prospect Hill on land currently legally described as: Parcel One (TORRENS PROPERTY, Certificate No. 621341): That part of Lot 2, Plan of Prospect Hill described as follows: Beginning at a point 291.13 feet East of the Northwest corner of said Lot and 479.26 feet South of the North line of said Lot; thence South 180 feet to a point on the South line of said Lot 290.89 feet East of the Southwest corner of said Lot; thence East along the South line of said Lot 192.58 feet; thence North parallel with the East line of said Lot and 104.35 feet; thence East parallel with the South line of said Lot 137.35 feet to the East line of said Lot; thence North along the East line of said Lot 75.65 feet; thence West 330.13 feet to the point of beginning, except the West 163.50 feet thereof, also subject to the rights acquired by the County of Ramsey for highway purposes, Ramsey County, Minnesota, AND Parcel Two (ABSTRACT PROPERTY): One-quarter (1/4) acre in square form lying in the Southeast corner of that part of Lot Two (2), Plan of Prospect Hill, lying West of the West line of Prospect Street, according to the recorded plat thereof, and situate in Ramsey County, Minnesota (the "Property"); and WHERHEAS, the city council on January 23, 2018 held a public hearing as required by law, reviewed the final plat for its conformance with the city's ordinances, considered the recommendations of staff and heard comments from the Applicant. NOW, THEREFORE, BE IT RESOLVED, by the city council of the city of Lauderdale, Minnesota that preliminary and final approval be granted to the Applicant for the plat of Patsy's Prospect Hill, subject to the following terms and conditions: 1. The final plat is approved to allow the creation of 2 single-family lots; 2. The final plat must be filed with the Ramsey County Recorder and County Registrar of Titles within 90 days of the date of the city council resolution granting final approval or the final plat shall be considered void, unless a written request for time extension is submitted by the Applicant and approved by the city council prior to said time; 3. The Applicant must pay to the city a fee in an amount sufficient to reimburse the city for the cost of reviewing the application and related documents and for the city attorney to record the final plat. Dated: January 23, 2018 Mary Gaasch, Mayor Attest: Heather Butkowski, City Administrator -Clerk The motion for the adoption of the foregoing resolution was duly seconded by member upon vote being taken thereon, the following voted in favor thereof: And the following voted against same: Whereupon said resolution was declared duly passed. eity- LAND USE APPLICATION Date: E z_lizi v -i MAIN 651-792-7650 Fee Escrow Type of Request Description of Request `SNA -0 $100 $ 0 Lot Consolidation/Division $150 $ 0 Variance $200 $ 0 Conditional Use $500 $1,000 Zoning Amendment $500 $1,000 Subdivision $500 $1,000 PUD \ Applicant Information Owner Information (if different) aName: r\� \ , V6\ e_ Name: 0 v \.., A \---6\--A-1.--- !` Address: \ �('--1� FvQ�,,c�.� ��e.e� Address: Or? ``��� ���\-let--,,, C, S, Z: L c --cVe\e_.., V\) S---5-%1- C, S, Z: \—c., -,..)6 o i \� S'"..rti Phone: (-L_`-t 3 (c, 7_ Phone: Cel 1 — Email: a cAIN0,- ,c,. , Email: hz_ (c 14.e.c-Ar Signature: Signature: (i)6L.47--/ By signing above, the applicant agrees to pay the application fee and deposit an escrow fee to cover the city's consultants' costs associated with reviewing the associated request. Prior to having the request considered by the city, the applicant must deposit an escrow fee in an amount that is estimated to cover the city's consultants' costs as determined by the city administrator. If the city's consultants' costs exceed the initial escrow deposited by the applicant, an additional escrow fee will be required to cover the additional costs. The city shall use the applicant's fees to cover the city's actual consultants' costs in reviewing the request regardless of the city's action on the applicant's request. If the applicant's escrow fees exceed the city's actual consultants' costs for reviewing the request, the remaining escrow fees shall be refunded to the applicant. Review Timeline: All applications, other than concept plans, must be complete before being formally reviewed. Minnesota Statute provides 15 days to determine the application's completeness. Completeness depends on whether or not the checklist items are fulfilled. Checklist: Please review the checklist for the type of application you are applying for. ForOfficeUse Only PIN# Date of Complete Appli anon.. Escrow Fee Paid._' P.0 Recommendation (approve; Public. Hearing Date: Conditions? Kennedy Graven C H AR T ER ED Offices in Minneapolis Saint Paul St. Cloud 470 U.S. Bank Plaza 200 South Sixth Street Minneapolis, MN 55402 (612) 337-9300 telephone (612) 337-9310 fax ww w,kenuedy-graven.com Affirmative Action, Equal Opportunity Employer BRIAN D. LEHINGER Attorney at Law Direct Dial: (612) 337-9246 Email: blehinger@kennedy-graven.com kennedy-graven.com January 11, 2018 VIA E-MAIL AND U.S.MAIL Ms. Heather. Butkowski City Administrator City of Lauderdale 1891 Walnut Street Lauderdale, MN 55113 RE: Plat Opinion for PATSY'S PROSPECT HILL Our File LA13S-36 Dear Heather: At your request, I have reviewed the owner and encumbrances report issued by Home Title, File Number 541709950, with an effective date of November 12, 2017 (the "Report"). I have also reviewed a plat drawing prepared by Kurth Surveying, Inc., which is titled PATSY'S PROSPECT HILL (the "Plat"). The Report purports to cover the following legal description (the "Property"): Parcel One (TORRENS PROPERTY, Certificate No. 224149); That part of Lot 2, Plan of Prospect Hill described as follows: Beginning at a point 291.13 feet East of the Northwest corner of said Lot and 479.26 feet South of the North line of said Lot; thence South 180 feet to a point on the South line of said Lot 290.89 feet East of the Southwest corner of said Lot; thence East along the South line of said Lot 192.58 feet; thence North parallel` with the East line of said Lot and 104.35 feet; thence East parallel with the South line of said Lot 137.35 feet to the East line of said Lot; thence North along the East line of said Lot 75.65 feet; thence West 330.13 feet to the point of beginning, except the West 163.50 feet thereof, also subject to the rights acquired by the County of Ramsey for highway purposes, Ramsey County, Minnesota. AND Parcel Two (ABSTRACT PROPERTY): One-quarter (1/4) acre in square form lying in the Southeast corner of that part of Lot Two (2), Plan of Prospect Hill, lying West of the West line of Prospect Street, Ramsey County, Minnesota. 514581v1 BDL LA135-36 Based on my review of the Report and the Plat, I have the following comments regarding the proposed Plat: 1. Plat Execution. The names and signatures of all of the following parties in interest must appear on the Plat: The fee owner, as indicated on the Report: Patsy L. White The Plat must be executed with all the formalities of a deed. 2. Plat Revisions. The following revisions to the Plat are required: The Ramsey County Manual of Guidelines for Subdivision Plats requires that, when a plat's legal description identifies any part of a lot, the identifier must be depicted on the plat. In the case of this Plat, the legal description contains a call "to the East line of said Lot," which refers to the East line of Lot 2, Plan of Prospect Hill. Said East line is not identified on the Plat. The East line of Lot 2, Plan of Prospect Hill, must be identified on the Plat. 3. Issues. The following are the potential issues created by the platting of the Property; Because part of the underlying land is registered property (Torrens), the plat is subject to the recording requirements of the Ramsey County Registrar of Titles. There are several items on the certificate of title that need to be addressed before the Plat can be approved for recording. Additionally, the Abstract portion of the Property is described in an ambiguous way, creating a potential title issue. a) The following mortgages, identified by document number, appear as unsatisfied on the certificate of ,title: 1127540, 1135234, 1518014, and 1518015. It is a rule that every entity with a security interest in property to be platted must either sign the plat or sign a separate consent form. However, since all of said mortgages have been satisfied in Abstract, that requirement is not appropriate in this case. Instead, certified copies of the satisfactions must be obtained from the Recorder's Office and filed in the Office of the Registrar of Titles prior to final plat approval. b) The certificate of title shows Robert S. White, who is deceased, to be an owner of the Property. All owners of platted property must sign the plat, so the absence of Robert as a signatory will create an issue with the Registrar's Office. An affidavit of survivorship was filed in Abstract, and a certified copy must be obtained from the Recorder's Office and filed in the Office of the Registrar of Titles prior to final plat approval. 514581v1 BDL LA135-36 c) The Abstract portion of the Property is described in a way that can be considered ambiguous, and ambiguity in a legal description can create a cloud on title. Specifically, that portion of the legal description beginning "One-quarter (1/4) acre in square form . • ." does not go on to give the orientation of said square. Furthermore, the description locates said square "in the Southeast corner of the part of Lot Two (2)," without specifying whether said square parcel shares a boundary with said part of Lot 2. It appears that the assumption was made on the Plat that said square parcel does share the boundary lines and orientation of said Lot 2, but the failure of the legal description to explicitly express as much creates an ambiguity. A title _commitment insuring over theissue of ambiguity in the legal description must be obtained prior to final approval of the Plat. I require opportunity to review said commitment, and reserve the right to make additional requirements based on my review, including but not limited to amending this opinion letter. 3. Taxes and Special Assessments, The County Auditor will require that all taxes due on the property be paid in full before approving the Plat for recording. Taxes are to be paid in full the year the Plat is recorded. Taxes for Parcel Number 17-29-23-34-0007 are paid in full for the year payable 2017, and there are no prior year taxes unpaid. Taxes for 2018 have not yet been calculated. No assessment search was provided in the Report. The special assessments. on the Property, if any, can be reapportioned among the new lots as provided under Minnesota Statutes Section 429: 071, subdivision 3. 4. Title Commitment Exceptions. No title commitment was provided for use in the preparation of this opinion letter. However, I require that a title commitment be obtained and reviewed by the city attorney prior to final approval of this Plat, for the reasons set forth above. This opinion is subject to and conditioned upon the issuance of a title policy in the amount of $50,000 in favor of the City of Lauderdale, provided at the sole expense of the subdivider, covering the City's interests being dedicated to the public in the proposed Plat. 514581v1 BDLLA135-36 This letter does not purport to set forth every platter relevant to a determination of whether title to the Property is marketable, and no one should rely upon it for that purpose. The sole purpose of this letter is to identify required signatories to the Plat and related issues of interest to the City in connection with platting, as evidenced by the Owner and Encumbrances Report. Please contact me if you have any questions regarding this information. Thank you. Sincerely, Brian D. Lehinger cc: Ronald H. Batty (via email only). Randy L. Kurth (via email only) Jim Bownik (via email only) 514581v1 BDL LA135-36 LAUDERDALE COUNCIL ACTION FORM Action Requested Consent Public Hearing X Discussion X Action X Resolution X Work Session Meeting Date January 23, 2018 ITEM NUMBER STAFF INITIAL Dev. District & TIF District APPROVED BY ADMINISTRATOR DESCRIPTION OF ISSUE AND PAST COUNCIL ACTION: The City Attorney, Ron Batty, will be present to answer questions the Council or the public may have about the actions to be taken, which include: Establishment of Tax Increment Financing District No. 1-2 (the "District") and the adop- tion of a Tax Increment Financing Plan (the "TIF Plan"). Modification to the Development Program for Development District No. 1 including the establishment of Tax Increment Financing District No. 1-2, which represents a continua- tion of the goals and objectives set forth in the Development Program for Development District No. 1. Expansion of the boundaries of Development District No. 1 to be coterminous with the corporate boundaries of the City of Lauderdale. Prior to taking action, the City Council will hold a public hearing on the matter. If the Council supports proceeding, the following resolution may be adopted. OPTIONS: STAFF RECOMMENDATION: Motion to adopt Resolution 012318B—A Resolution Adopting a Modification to the Devel- opment Program for Development District No. 1; and Establishing Tax Increment Financing District No. 1-2 Therein and Adopting a Tax Increment Financing Plan Therefor. Council member introduced the following resolution and moved its adoption: RESOLUTION NO. 012318B CITY OF LAUDERDALE RAMSEY COUNTY STATE OF MINNESOTA RESOLUTION ADOPTING A MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1; AND ESTABLISHING TAX INCREMENT FINANCING DISTRICT NO. 1-2 THEREIN AND ADOPTING A TAX INCREMENT FINANCING PLAN THEREFOR. BE IT RESOLVED by the City Council (the "Council") of the City of Lauderdale, Minnesota (the "City"), as follows: Section 1. Recitals 1.01. The City Council of the City of Lauderdale (the "City") has heretofore established Development District No. 1 and adopted the Development Program therefor. It has been proposed by the City that the City adopt a Modification to the Development Program (the "Development Program Modification") for Development District No. 1 (the "Project Area") and establish Tax Increment Financing District No. 1-2 (the "District") therein and adopt a Tax Increment Financing Plan (the "TIF Plan") therefor (the Development Program Modification and the TIF Plan are referred to collectively herein as the "Program and Plan"); all pursuant to and in conformity with applicable law, including Minnesota Statutes, Sections 469.124 to 469.133 and Sections 469.174 to 469.1794, all inclusive, as amended, (the "Act") all as reflected in the Program and Plan, and presented for the Council's consideration. 1.02. The City has investigated the facts relating to the Program and Plan and has caused the Program and Plan to be prepared. 1.03. The City has performed all actions required by law to be performed prior to the establishment of the District and the adoption and approval of the proposed Program and Plan, including, but not limited to, notification of Ramsey County and Independent School District No. 623 having taxing jurisdiction over the property to be included in the District, and the holding of a public hearing upon published notice as required by law. 1.04. Certain written reports (the "Reports") relating to the Program and Plan and to the activities contemplated therein have heretofore been prepared by staff and consultants and submitted to the Council and/or made a part of the City files and proceedings on the Program and Plan. The Reports, including the redevelopment qualifications reports and planning documents, include data, information and/or substantiation constituting or relating to the basis for the other findings and determinations made in this resolution. The Council hereby confirms, ratifies and adopts the Reports, which are hereby incorporated into and made as fully a part of this resolution to the same extent as if set forth in full herein. 1.05 The City is modifying the boundaries of Development District No. 1 to be coterminous with the corporate boundaries of the City. Section 2. Findings for the Adoption and Approval of the Development Program Modification. 2.01. The Council approves the Development Program Modification, and specifically finds that: (a) the land within the Project Area as expanded would not be available for redevelopment without the financial aid to be sought under this Development Program; (b) the Development Program, as modified, will afford maximum opportunity, consistent with the needs of the City as a whole, for the development of the Project Area by private enterprise; and (c) that the Development Program, as modified, conformsto the general plan for the development of the City as a whole. Section 3. Findings for the Establishment of Tax Increment Financing District No. 1-2 3.01. The Council hereby finds that the District is in the public interest and is a "redevelopment district" under Minnesota Statutes, Section 469.174, Subd. 10 of the Act. 3.02. The Council further finds that the proposed redevelopment would not occur solely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the District permitted by the Tax Increment Financing Plan, that the Program and Plan conform to the general plan for the development or redevelopment of the City as a whole; and that the Program and Plan will afford maximum opportunity consistent with the sound needs of the City as a whole, for the development or redevelopment of the District by private enterprise. 3.03. The Council further finds, declares and determines that the City made the above findings stated in this Section and has set forth the reasons and supporting facts for each determination in writing, attached hereto as Exhibit A. 3.04. The City of Lauderdale elects to calculate fiscal disparities for the District in accordance with Minnesota Statutes, Section 469.177, Subd. 3, clause b, which means the fiscal disparities contribution would be taken from inside the District. Section 4. Public Purpose 4.01. The adoption of the Program and Plan conforms in all respects to the requirements of the Act and will help fulfill a need to develop an area of the City which is already built up, to provide employment opportunities, to improve the tax base and to improve the general economy of the State and thereby serves a public purpose. For the reasons described in Exhibit A, the City believes these benefits directly derive from the tax increment assistance provided under the TIF Plan. A private developer will receive only the assistance needed to make this development financially feasible. As such, any private benefits received by a developer are incidental and do not outweigh the primary public benefits. Section 5. Approval and Adoption of the Program and Plan 5.01. The Program and Plan, as presented to the Council on this date, including without limitation the findings and statements of objectives contained therein, are hereby approved, ratified, established, and adopted and shall be placed on file in the office of the City Administrator. 5.02. The staff of the City, the City's advisors and legal counsel are authorized and directed to proceed with the implementation of the Program and Plan and to negotiate, draft, prepare and present to this Council for its consideration all further plans, resolutions, documents and contracts necessary for this purpose. 5.03 The Auditor of Ramsey County is requested to certify the original net tax capacity of the District, as described in the Program and Plan, and to certify in each year thereafter the amount by which the original net tax capacity has increased or decreased; and the City of Lauderdale is authorized and directed to forthwith transmit this request to the County Auditor in such form and content as the Auditor may specify, together with a list of all properties within the District, for which building permits have been issued during the ,18 months immediately preceding the adoption of this resolution. 5.04. The City Administrator is further authorized and directed to file a copy of the Program and Plan with the Commissioner of the Minnesota Department of Revenue and the Office of the State Auditor pursuant to Minnesota Statutes 469.175, Subd. 4a. The motion for the adoption of the foregoing resolution was duly seconded by Council member , and upon a vote being taken thereon, the following voted in favor thereof: and the following voted against the same: Dated: January 23, 2018 ATTEST: Mary Gaasch, Mayor Heather Butkowski, City Clerk -Administrator (Seal) EXIIIBIT A RESOLUTION NO. 012318B The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan (TIF Plan) for Tax Increment Financing District No. 1-2 (District), as required pursuant to Minnesota Statutes, Section 469.175, Subdivision 3 are as follows: 1. Finding that Tax Increment Financing District No. 1-2 is a redevelopment district as defined in M.S., Section 469.174, Subd. 10. The District consists of one parcel with plans to redevelop the area for residential purposes. At least 70 percent of the area of the parcels in the District are occupied by buildings, streets, utilities, paved or gravel parking lots or other similar structures and more than 50 percent of the buildings in the District, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance. (See Appendix F of the TIF Plan.) 2. Finding that the proposed development, in the opinion of the City Council, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable fixture and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the District permitted by the TIF Plan. 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: This finding is supported by the fact that the redevelopment proposed in the TIF Plan meets the City's objectives for redevelopment. Due to the high cost of land acquisition and redevelopment on the parcel currently occupied by a substandard building and associated environmental remediation issues, and the cost of financing the proposed improvements, this project is feasible only through assistance, in part, from tax increment financing. The City has been approached by several multi -family housing developers who have all stated that tax increment assistance would be needed to redevelop the site. The increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the District permitted by the TIF Plan: This finding is justified on the' grounds that the cost of acquiring a site with a blighted building that has to be demolished for reuse and costs of remediating environmental issues within the building add to the total redevelopment cost. Historically, these costs in this area have made redevelopment infeasible without tax increment assistance. This site has been marketed for at least two years without success and the only interest has been from similar uses (church/tax exempt uses) that have found the cost to even reuse the building and bring up to code are cost prohibitive. The City reasonably determines that no other redevelopment of similar scope is anticipated on this site without substantially similar assistance being provided to the development. Therefore, the City concludes as follows: a. The City's estimate of the amount by which the market value of the entire District will increase without the use of tax increment financing is $0. b. If the proposed development occurs, the total increase in market value will be $18,764,600. c. The present value of tax increments from the District for the maximum duration of the district permitted by the TIF Plan is estimated to be $3,978,066. d. Even if some development other than the proposed development were to occur, the Council finds that no alternative would occur that would produce a market value increase greater than $14,786,534 (the amount in clause b less the amount in clause c) without tax increment assistance. 3. Finding that the TIF Plan for the District conforms to the general plan for the development or redevelopment of the municipality as a whole. The City Council, serving as the City's planning agency within the meaning of M.S., Section 462.354, Subd.1, reviewed the TIF Plan and found that the TIF Plan conforms to the general development plan of the City. 4. Finding that the TIF Plan for the District will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development or redevelopment of Development District No. 1 by private enterprise. The project to be assisted by the District will result in increased employment in the City and the State of Minnesota, the renovation of substandard properties, increased tax base of the State and add a high quality development to the City. Through the implementation of the TIF Plan, the City will increase the availability of safe and decent life- cycle housing in the City. Tax Increment Financing District Overview City of Lauderdale Tax Increment Financing District No. 1-2 The following summary contains an overview of the basic elements of the Tax Increment Financing Plan for Tax Increment Financing District No. 1-2. More detailed information on each of these topics can be found in the complete Tax Increment Financing Plan. Proposed action: Establishment of Tax Increment Financing District No. 1-2 (the "District") and the adoption of a Tax Increment Financing Plan (the "TIF Plan"). Modification to the Development Program for Development District No. 1 includes the establishment of Tax Increment Financing District No. 1-2, which represents a continuation of the goals and objectives set forth in the Development Program for Development District No. 1. Expansion of the boundaries of Development District No. 1 to be coterminous with the corporate boundaries of the City of Lauderdale. Type of TIF District: A redevelopment district Parcel Numbers: 17.29.23.33.0001 Proposed The District is being created to facilitate construction of up to 130 market rate Development: apartments within the City. Please see Appendix A of the TIF Plan for a more detailed project description. Maximum duration: The duration of the District will be 25 years from the date of receipt of the first increment (26 years of increment). The City expects the date of first tax increment to be 2020. It is estimated that the District, including any modifications of the TIF Plan for subsequent phases or other changes, would terminate after December 31, 2045, or when the TIF Plan is satisfied. Estimated annual tax Up to $265,305 increment: all EHLERS LEADERS IN PUBLIC FINANCE Authorized uses: The TIF Plan contains a budget that authorizes the maximum amount that may be expended: Land/Building Acquisition $1,300,000 Site Improvements/Preparation $1,500,000 Utilities $200,000 Other Qualifying Improvements $1,290,649 Administrative Costs (up to 10%) $687,311 PROJECT COSTS TOTAL $4,977,960 Interest $2,582,465 PROJECT COSTS TOTAL $7,560,425 See Subsection 2-10, on page 2-6 of the TIF Plan for the full budget authorization. Form of financing: The project is proposed to be financed by a bond issue, interfund loan and/or transfer of funds needed if tax increment isn't adequate to cover debt service on the bonds. Administrative fee: Up to 10% of annual increment, if costs are justified. 4 Year Activity Rule (sC 469.176 Subd. 6) After four years from the date of certification of the District one of the following activities must have been commenced on each parcel in the District: • Demolition • Rehabilitation • Renovation • Other site preparation (not including utility services such as sewer and water) If the activity has not been started by approximately January 2022, no additional tax increment may be taken from that parcel until the commencement of a qualifying activity. 5 Year Rule Within 5 years of certification revenues derived from tax increments must be (5C 469.1763 Subd. 3) expended or obligated to be expended. Any obligations in the District made after approximately January 2023, will not be eligible for repayment from tax increments. The reasons and facts supporting the findings for the adoption of the TIF Plan for the District, as required pursuant to M.S., Section 469.175, Subd. 3, are included in Exhibit A of the City resolution. 0 LEADERS IN PUBLIC FINANCE Page 2 EHLERS Tax Increment Financing District No. 1-2 Legend Gil City Halls Schools Lil Hospitals (u) Fire Statons 1 Police Stations tr4TI Recreational Centers Paroal Points D Cities Bouudaiies of the Cit';- of Lauderdale 117w boundaries of Development District No. 1 are being expanded to be coterminous with the corporate boundaries of the Citi of Lauderdale. TAX INCREMENT FINANCING DISTRICT NO. 1-2 DEVELOPMENT DISTRICT NO. 1 (GEOGRAPHIC EXPANSION) CITY OF LAUDERDALE RA-IISEY COUNTY, MINNESOTA EHLERS LEADERS IN PUBLIC FINANCE As of January 23, 2018 Draft for Public Hearing Modification to the Development Program for the Amendment and Restatement of Development District No. 1 City of Lauderdale Ramsey County State of Minnesota Originally Adopted: October 8, 1985 Public Hearing on Amendment and Restatement: January 23, 2018 Adopted: 1011 FREERS Prepared by: EHLERS & ASSOCIATES, INC. 3060 Centre Pointe Drive, Roseville, Minnesota 55113-1105 (651) 697-8500 fax: (651) 697-8555 www.ehlers-inc.com Table of Contents (for reference purposes only) Municipal Action Taken Section 1 - Developm for Development Subsection 1-1. Subsection 1-2. Subsection 1-3. Subsection 1-4. Subsection Subsection Subsection Subsection Subsection Subsection Subsection Subsection Subsection Subsection Subsection ent Program District No, 1 Definitions Statutory Authority Statement of and Finding of Public Purpose Statement of Objectives 1-5. Statement of Public Facilities and Costs to Be Financed 1-6. Funding of Developments and Redevelopments 1-7. Environmental Controls 1-8. Proposed Reuse of Property 1-9. Open Space to Be Created 1-10. Administration and Maintenance of Development District No. 1 1-11. Rehabilitation 1-12. Relocation 1-13. Property Acquisition 1-14. Modification of the Development Program and/or Development 1-1 1-1 1-2 1-2 1-3 1-4 1-4 1-4 1-4 1-4 1-4 1-5 1-5 1-5 District No. 1 1-6 1-6 1-15. Description of Boundaries of Development District No. 1 Appendix A Boundary Map of Development District No. 1 A-1 Municipal Action Taken (This Municipal Action is only for convenience of reference.) Based upon the statutory authority described in the Development Program attached hereto, the public purpose findings by the City Council and for the purpose of fulfilling the City's development objectives as set forth in the Development Program, the City Council has created, established and designated Development District No. 1 pursuant to and in accordance with the requirements of the Municipal Development District Act and the TIF Act as defined in the definitions of this document. Tax Increment Financing District No. 1-1, a housing tax increment financing district, was established at the same time that Development District No. 1 was established in 1985. Tax Increment Financing District No. 1-2, a redevelopment tax increment financing district, was established at the same time that the Development District No. 1 was amended and restated in 2018. The following municipal action was taken in connection therewith: Development District No. 1: October 8, 1985: The Development Program for Development District No. 1 was adopted by the City in and for the City of Lauderdale. January 23, 2018: The Amended and Restated Development Program for Development District No. 1 was adopted by the City in and for the City of Lauderdale. Tax Increment Financing District No. 1-1: October 8, 1985: The Tax Increment Financing Plan for Tax Increment Financing District No. 1-1 was adopted by the City in and for the City of Lauderdale and is now decertified. Tax Increment Financing District No. 1-2: January 23, 2018: The Tax Increment Financing Plan for Tax Increment Financing District No. 1-2 was adopted by the City in and for the City of Lauderdale. Section 1 - Development Program for Development District No. 1 Subsection 1-1. Definitions The terms defined below shall, for purposes of this Development Program, have the meanings herein specified, unless the context otherwise specifically requires. "City" means the City of Lauderdale. "City Council" means the City Council of the City of Lauderdale. "Comprehensive Plan" means the documents which contain the objectives, policies, standards and programs to guide public and private land use, development, redevelopment and preservation for all lands and water within the City. "County" means the County of Ramsey County, Minnesota. "Enabling Act" means Minnesota Statues, 469.124 to 469.134, as amended and supplemented from time to time. "Development District" means the real property within the City constituting the Development District No. 1, as described in the Development Program. "Development Program" means this Development Program for Development District No. 1, as initially proposed, and as it shall be modified. "Land Use Regulations" means all federal, state and local laws, rules, regulations, ordinances, and plans relating to or governing the use of development of land in the City, including but not limited to environmental, zoning and building code laws and regulations. "Municipal Development District Act" means Minnesota Statutes, 469.124 to 469.134, inclusive, as amended. "Public Costs" means the costs set forth in the Tax Increment Financing Plan, and any other costs eligible to be financed by Tax Increments under the TIF Act or the Municipal Development District Act. "Public Improvements" means the public improvements described in the Development Program and Tax Increment Financing Plan. "State" means the State of Minnesota. "Tax Increment Bonds" means any tax increment bonds or notes issued by the City to finance the Public Costs as stated in the Development Program for Development District No. 1 and in the Tax Increment Financing Plans, and any obligations issued to refund such bonds. "TIF Act" means Minnesota Statutes, Sections 479.174 through 479.1799, inclusive, as amended. City of Lauderdale Development Program for Development District No. 1 1-1 "Tax Increment Financing District" means any tax increment financing district presently established or to be established in the future in Development District No. 1. "Tax Increment Financing Plan" or "Plan" means the Plans adopted by the City for any Tax Increment Financing District. Subsection 1-2. Statutory Authority The City established Development District No. 1 pursuant to the Municipal Development District Act. It is authorized that the City will administer the Development District No. 1 and any tax increment financing districts. Within the Development District No. 1, the City plans to create one or more tax increment financing districts established pursuant to the Tax Increment Act to finance the public improvements proposed for the Development District. The public improvements may be initially financed from other City sources, including, but not limited to the use of bonds, which sources the City may reimburse from tax increment proceeds derived from tax increment districts to be created with the Development District No. 1. The tax increment district or districts will be created at such time as will enable the City to capture the increase in taxable value of private improvements to be constructed within the Development District No. 1. Subsection 1-3. Statement of and Finding of Public Purpose In recent months, the City has been reviewing the future development of the community. This review has defined several important roles for the City of Lauderdale. • Facilitating development activities that are compatible with overall community development objectives of the City. • Removing the physical and economic barriers to development. • Providing the infrastructure needed to support development. • Providing sites for future development. The City intends to use the powers allowed under the Enabling Act to fill these roles, to promote development and redevelopment throughout the City, and to pool resources in order to reduce financial barriers to providing decent housing, employment opportunities, to improve the tax base, to improve the general economy of theCity and State and provide for development and redevelopment opportunities. The City has found that there is a need for development and redevelopment within the Development District based upon the following conditions: 1. The Development District contains numerous parcels containing buildings or improvements which, by reason of dilapidation, obsolescence, overcrowding, faulty arrangement or design, lack of ventilation, light and sanitary facilities, excessive land coverage, deleterious land use or obsolete layout, and a combination of these and other factors is detrimental to the safety, health, morals or welfare of the community. City of Lauderdale Development Program for Development District No. 1 1-2 2. The Development District suffers from a lack of necessary streets, utilities and site improvements essential to preparing and making sites available for meaningful development. 3. The Development District requires active promotion, attraction, encouragement and development of economically sound commerce through government action for the purpose of preventing emergence and continuation of blight and the occurrence of conditions requiring redevelopment 4. The Development District contains vacant, unused, underused and inappropriately used land. Therefore, the City has determined to exercise its authority to develop a program for improving the Development District to provide impetus for private development and redevelopment, to provide decent housing to residents, to maintain and increase employment, to provide infrastructure to serve citizens and employees of the City, to utilize existing land for potential redevelopment and to provide other facilities as are outlined in the Development Program. The City has also determined that proposed developments to be assisted by the City would not occur solely through private investment in the foreseeable future. The City finds that the welfare of the City , as well as the State of Minnesota, requires active promotion, attraction, encouragement and development of economically sound industry and commerce to carry out its stated public purpose objectives. The City has also determined that any tax increment financing plans to be proposed herein will be consistent with the Development Program, and that the tax increment financing plans will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development or redevelopment of the Development District by private enterprise. Subsection 1-4. Statement of Objectives The City determines that it is necessary, desirable and in the public interest to establish, designate, develop and administer the Development District. The City determines that the establishment of Development District No. 1 will provide the City with the ability to achieve certain public purpose objectives not otherwise obtainable in the foreseeable future without City intervention in the normal development process. The City seeks to achieve the following program objectives: 1. Promoting and securing the prompt development of property in the Development District in a manner consistent with the City's Comprehensive Plan and with a minimal adverse impact on the environment, which property is less productive because of the lack of proper utilization and lack of investment, and thereby promoting and securing the development of other land in the City; 2. Promoting and securing additional employment opportunities within the Development District and the City for residents of the City and the surrounding area, thereby improving living standards and preventing unemployment and the loss of skilled and unskilled labor and other human resources in the City; 3. Securing the increase in value of property subject to taxation by the City, Independent School District No. 623 and Ramsey County, and any other taxing jurisdictions in order to better enable such entities to pay for public improvements and governmental services and programs required to be provided by them; 4. Securing the construction and providing of moneys for the payment of the cost of public City of Lauderdale Development Program for Development District No. 1 1-3 improvements in the Development District, which are necessary for the orderly and beneficial development of the Development District; and 5. Providing and securing the development of increased opportunities for families to reside in quality owner -occupied housing, for senior citizens to choose from housing options which offer a wide array of services without regard to income, and for residents looking for a wide range of multi -family units. Subsection 1-5. Statement of Public Facilities and Costs to Be Financed The preceding objectives will be promoted by providing improvements and opportunities within the Development District which may include various types of site improvements, land acquisition, redevelopment, demolition, parking, street, sewer, water and other public improvements. A description of the items of expenditure and the estimated costs can be found in the Tax Increment Financing Plans for the Tax Increment Financing Districts created within this Development District. Subsection 1-6. Funding of Developments and Redevelopments To implement the established objectives, the City plans to utilize a number of public and private financing tools. Funding of the necessary activities and improvements in the Development District is expected to be accomplished through, and is not limited to, tax increment financing, special assessments, state aid for road construction, proceeds from the sale of property, and federal and state grants. Any public facilities within the Development District will be financially feasible and compatible with longer range development plans. Any acquisition of property for the public improvements will be done to provide the impetus for private development within the Development District. Subsection 1-7. Environmental Controls All municipal actions, public improvements and private development shall be carried out in a manner consistent with existing environmental controls and all applicable Land Use regulations. Subsection 1-8. Proposed Reuse of Property The Development Program contemplates that the City may acquire property and reconvey the same to another entity. It is the intent of the City to negotiate the acquisition of property whenever possible. Appropriate restrictions regarding the reuse and redevelopment of property shall be incorporated into any development agreement to which the City is a party. Subsection 1-9. Open Space to Be Created Any open space within the Development District will be created in accordance with the zoning and ordinances of the City. Subsection 1-10. Administration and Maintenance of Development District No. 1 Maintenance and operation of the Development District will be the responsibility of the City Administrator. Each year, the Administrator of the Development District will submit to the City Council the maintenance and operation budget for the following year. City of Lauderdale Development Program for Development District No. 1 1-4 The Administrator of the Development District will administer the Development District pursuant to the provision of the Enabling Act; provided, however, that such powers may only be exercised at the direction of the City. No action taken by the administrator of the Development District pursuant to the above- mentioned powers shall be effective without authorization by the City. Subsection 1-11. Rehabilitation Owners of properties within the Development District may be encouraged to rehabilitate their properties to conform with the applicable state and local codes and ordinances, as well as any design standards. Persons who purchase property within the Development District from the City may be required to rehabilitate their properties as a condition of sale of land. The City may provide such rehabilitation assistance as may be available from federal, state or local sources. Subsection 1-12. Relocation Any person or business that is displaced as a result of the Development Program will be relocated in accordance with Minnesota Statutes, Section 117.50 to 117.56. The City accepts its responsibility for providing for relocation assistance pursuant to the Enabling Act. Subsection 1-13. Property Acquisition The City intends to acquire such property, or appropriate interest therein, within the Development District as the City may deem to be necessary or desirable to assist in the implementation of the Development Program. At the time of this amendment and restatement of the Development Program, the City is also in the process of updating its Comprehensive Plan which is expected to be completed by the end of 2018. The process includes review and consideration of its Future Land use Plan, and to date has identified for potential opportunity sites for redevelopment during the planning period which extends to 2040. Each of the sites were identified and evaluated for redevelopment potential based generally on three factors, 1) current use and size of the site; 2) estimated market value and current condition of existing land and buildings; and 3) proximity and locational position along the Lauderdale Avenue corridor that has been identified as the community's gateway. After review and preliminary analysis using these criteria, and stake holder engagement, four opportunity sites were selected as most important to the City to focus redevelopment efforts and consideration over this planning period. Opportunity Site #1 is approximately 1.11 acres exclusive of public right-of-way and is located east of Highway 280, north of Larpenteur Avenue and west of Eustis Street. The opportunity site boundary contains a collection of smaller parcels, each with southerly frontage along Larpenteur Avenue. The existing structures and uses in this area were constructed prior to the expansion of Larpenteur Avenue and as a result are generally lower intensity uses than are typically found along a major roadway with high trip and traffic counts. As a result, the City has identified this area as a n opportunity for redevelopment with a mix of uses at higher densities in this area by introducing new land use designations within the comprehensive plan update and creating and establishing consistent zoning to support a higher intensity land use designation. Opportunity Site #2 is approximately 0.70 acres, and is located east of Highway 280, south of Larpenteur and west of Eustis Street. The opportunity site boundary also includes an existing parcel and business use that is not anticipated to be part of the City's redevelopment initiatives as it is a newer structure and viable business in the corridor. Additionally, the City currently owns an approximately 0.29 -acre parcel contained within the City of Lauderdale Development Program for Development District No. 1 1-5 opportunity site boundary that is not included within the acreages, but would be considered in any redevelopment scenario. The site adjoins and is adjacent to Opportunity Site #3, and it is possible that both this site and Opportunity Site #3 would be considered collectively depending on the redevelopment plan. Opportunity Site #2 is comprised of a collection of small independently owned parcels each with frontage on Larpenteur Avenue along their northerly property boundary. Similarly to Opportunity Site #1, the existing uses and buildings were established prior to roadway improvements and are generally aging, and much of th eland area is underutilized to an even greater extent than the parcels and uses contained within Opportunity Site #1. Since th City views this area as a prominent gateway into the community, they have identified this area for redevelopment. Intensification of uses, including the potential for higher density residential, street level commercial/retail, and public plaza have been identified as potential uses in this area. The comprehensive plan update will include updating the land use designation to support more intense uses to support the redevelopment potential. Opportunity Site #3 is approximately 4.12 acres, and is located east of highway 280, south of Larpenteur Avenue and west of Eustis Street. The opportunity site is largest of the four redevelopment opportunity sites identified and studied during the planning process, and is adjacent to and adjoins Opportunity Site #2. There is a significant slope between Opportunity site #2 and Opportunity Site #3, and high elevations with the potential to capitalize on views to the downtown Minneapolis skyline. The site's existing light industrial use is the last in the area, and is largely surrounded by office, multi -family and commercial/retail. As a result, the City has identified this site as a potential redevelopment site that could be used for more compatible uses that would capitalize on the amenities of the area. Appropriate uses could include higher -density multi -family, ore mixed-use office/commercial and residential uses. Opportunity Site #4 is approximately 1.7 acres, and is located north of Larpenteur Avenue, and west of Eustis Street. This opportunity site is one of the largest contiguous properties under single ownership left in the City, and the existing structure and associated improvements are aging and have significant structural obsolescence. The building on the property is currently vacant but has previously been used for non-profit and semi-public uses. Redevelopment of the property for more intensity, specifically some type of multi -family residential use, would put the property back on to the tax rolls and would offer new housing choices in the community. The comprehensive plan update will include re -guiding the property to encourage higher density uses to support the redevelopment potential of the site. Subsection 1-14. Modification of the Development Program and/or Development District No. 1 The City reserves the right to alter and amend the Development Program and the Tax Increment Financing Plans, subject to the provisions of state law regulating such action. The City specifically reserves the right to enlarge or reduce the size of the Development District and the Tax Increment Financing District, the Development Program, the Public Costs and the amount of Tax Increment Bonds to be issued to finance such cost by following the procedures specified in Minnesota Statutes, Section 469.175, subdivision 4. Subsection 1-15. Description of Boundaries of Development District No. 1 The boundaries of the Development District shall be coterminous with the corporate boundaries of the City of Lauderdale. City of Lauderdale Development Program for Development District No. 1 1-6 Appendix A Boundary Map of Development District No. 1 City of Lauderdale Development Program for Development District No. 1 A-1 4 -+ s 4• rri am -I i i F Avenue r .' 1 .:, gR.r - • �•• '4 :w Mss i w 1 A.. r 8 i , i • .4 a A s r a. ,. •+ Y „ r •. 121 . f � � . ._ • s+:i care • , f° VIP. • a - r aA-. • •. -s s -•i ;;a. • ! .i - °..., a • i = 7e • w I�i -": Legend id City Halls Schools I:1 Hospitals O Fire Stations Q Police Stations Rc Recreational Centers Parcel Points 0 Cities Boundaries of the City of Lauderdale Lam The boundaries of Development District No. 1 are being expanded to be coterminous with the corporate boundaries of the City of Lauderdale. DEVELOPMENT DISTRICT NO. 1 (GEOGRAPHIC EXPANSION) CITY OF LAUDERDALE RAMSEY COUNTY, MINNESOTA As of January 19, 2018 Draft for Public Hearing Tax Increment Financing Plan for the establishment of Tax Increment Financing District No. 1-2 (a redevelopment district) within Development District No. 1 City of Lauderdale Ramsey County State of Minnesota Public Hearing: January 23, 2018 Adopted: EHLERS Prepared by: EHLERS & ASSOCIATES, INC. 3060 Centre Pointe Drive, Roseville, Minnesota 55113-1105 651-697-8500 fax: 651-697-8555 www.ehlers-inc.com Table of Contents (for reference purposes only) Section 1 - Tax Increment Financing Plan for Tax Increment Financing District No. 1-2 1-1 Subsection 1-1. Foreword 1-1 Subsection 1-2. Statutory Authority 1-1 Subsection 1-3. Statement of Objectives 1-1 Subsection 1-4. Development Program Overview 1-1 Subsection 1-5. Description of Property in the District and Property To Be Acquired 1-2 Subsection 1-6. Classification of the District 1-2 Subsection 1-7. Duration and First Year of Tax Increment of the District 1-4 Subsection 1-8. Original Tax Capacity, Tax Rate and Estimated Captured Net Tax Capacity Value/Increment and Notification of Prior Planned Improvements 1-4 Subsection 1-9. Sources of Revenue/Bonds to be Issued 1-5 1-5 1-6 1-7 1-8 1-8 1-10 1-10 1-10 1-11 1-12 1-12 1-13 1-13 1-13 1-14 1-14 1-14 1-14 1-15 A-1 Subsection 1-10. Uses of Funds Subsection 1-11. Fiscal Disparities Election Subsection 1-12. Business Subsidies Subsection 1-13. County Road Costs Subsection 1-14. Estimated Impact on Other Taxing Jurisdictions Subsection 1-15. Supporting Documentation Subsection 1-16. Definition of Tax Increment Revenues Subsection 1-17. Modifications to the District Subsection 1-18. Administrative Expenses Subsection 1-19. Limitation of Increment Subsection 1-20. Use of Tax Increment Subsection 1-21. Excess Increments Subsection 1-22. Subsection 1-23. Subsection 1-24. Subsection 1-25. Subsection 1-26. Subsection 1-27. Subsection 1-28. Requirements for Agreements with the Developer Assessment Agreements Administration of the District Annual Disclosure Requirements Reasonable Expectations Other Limitations on the Use of Tax Increment Summary Appendix A Project Description Appendix B Map of Development District No. 1 and the District B-1 Appendix C Description of Property to be Included in the District C-1 Appendix D Estimated Cash Flow for the District D-1 Appendix E Minnesota Business Assistance Form E-1 Appendix F Redevelopment Qualifications for the District F-1 Appendix G Findings Including But/For Qualifications G-1 Section 1- Tax Increment Financing Plan for Tax Increment Financing District No. 1-2 Subsection 1-1. Foreword The City ofLauderdale (the "City"), staff and consultants have prepared the following information to expedite the establishment of Tax Increment Financing District No. 1-2 (the "District"), a redevelopment tax increment financing district, located in Development District No. 1. Subsection 1-2. Statutory Authority Within the City, there exist areas where public involvement is necessary to cause development or redevelopment to occur. To this end, the City has certain statutory powers pursuant to Minnesota Statutes ("M.S.'), Sections 469.124 to 469.133, inclusive, as amended, and M.S., Sections 469.174 to 469.1794, inclusive, as amended (the "Tax Increment Financing Act" or "TIF Act"), to assist in financing public costs related to this project. This section contains the Tax Increment Financing Plan (the "TIF Plan") for the District. Other relevant information is contained in the Modification to the Development Program for Development District No. 1. Subsection 1-3. Statement of Objectives The District currently consists of one parcel of land and adjacent and internal rights-of-way. The District is being created to facilitate construction of up to 130 market rate apartments in the City. Please see Appendix A for further District information. The City has not entered into an agreement or designated a developer at the time of preparation of this TIF Plan, so the TIF plan is based upon a maximum number of units that could be built on the site. The project may be smaller in the number of units and or may consist of single-family housing. This TIF Plan is expected to achieve many of the objectives outlined in the Development Program for Development District No. 1. The activities contemplated in the Modification to the Development Program and the TIF Plan do not preclude the undertaking of other qualified development or redevelopment activities. These activities are anticipated to occur over the life of Development District No. 1 and the District. Subsection 1-4. Development Program Overview 1. Property to be Acquired - Selected property located within the District may be acquired by the City and is further described in this TIF Plan. 2. Relocation - Relocation services, to the extent required by law, are available pursuant to M.S., Chapter 117 and other relevant state and federal laws. 3. Upon approval of a developer's plan relating to the project and completion of the necessary legal requirements, the City may sell to a developer selected properties that it may acquire within the District or may lease land or facilities to a developer. 4. The City may perform or provide for some or all necessary acquisition, construction, relocation, demolition, and required utilities and public street work within the District. City of Lauderdale Tax Increment Financing Plan for Tax Increment Financing District No. 1-2 1-1 Subsection 1-5. Description of Property in the District and Property To Be Acquired The District encompasses all property and adjacent rights-of-way and abutting roadways identified by the parcels listed in Appendix C of this TIF Plan. Please also see the map in Appendix B for further information on the location of the District. The City may acquire any parcel within the District including interior and adjacent street rights of way. Any properties identified for acquisition will be acquired by the City only in order to accomplish one or more of the following: storm sewer improvements; provide land for needed public streets, utilities and facilities; cavy out land acquisition, site improvements, clearance and/or development to accomplish the uses and objectives set forth in this plan. The City may acquire property by gift, dedication, condemnation or direct purchase from willing sellers in order to achieve the objectives of this TIF Plan. Such acquisitions will be undertaken only when there is assurance of funding to finance the acquisition and related costs. Subsection 1-6. Classification of the District The City, in determining the need to create a tax increment financing district in accordance with M.S., Sections 469.174 to 469.1794, as amended, inclusive, finds that the District, to be established, is a redevelopment district pursuant to M.S., Section 469.174, Subd. 10(a)(1) as defined below: (a) "Redevelopment district" means a type of tax increment financing district consisting of a project, or portions of a project, within which the authority finds by resolution that one or more of the following conditions, reasonably distributed throughout the district, exists: (1) parcels consisting of 70 percent of the area in the district are occupied by buildings, streets, utilities, paved or gravel parking lots or other similar structures and more than 50 percent of the buildings, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance; (2) The property consists of vacant, unused, underused, inappropriately used, or infrequently used rail yards, rail storage facilities or excessive or vacated railroad rights-of-way; (3) tank facilities, orproperty whose immediately previous use was for tank facilities, as defined in Section 115C, Subd. 15, if the tank facility: (i) (i i) have or had a capacity of more than one million gallons; are located adjacent to rail facilities; or (iii) have been removed, or are unused, underused, inappropriately used or infrequently used; or (4) a qualifying disaster area, as defined in Subd. 10b. (b) For purposes of this subdivision, "structurally substandard" shall mean containing defects in structural elements or a combination of deficiencies in essential utilities and facilities, light and ventilation, fire protection including adequate egress, layout and condition ofinteriorpartitions, or similar factors, which defects or deficiencies are of sreicient total significance to justify substantial renovation or clearance. (c) A building is not structurally substandard if it is in compliance with the building code applicable to new buildings or could be modified to satisfy the building code at a cost of less than 15 percent of the cost of constructing a new structure of the same square footage and type on the City of Lauderdale Tax Increment Financing Plan for Tax Increment Financing District No. 1-2 1-2 site. The municipality may find that a building is not disqualified as structurally substandard under the preceding sentence on the basis of reasonably available evidence, such as the size, type, and age of the building, the average cost of plumbing, electrical, or structural repairs or other similar reliable evidence. The municipality may not make such a determination without an interior inspection of the property, but need not have an independent, expert appraisal prepared of the cost of repair and rehabilitation of the building. An interior inspection of the property is not required, if the municipality finds that (1) the municipality or authority is unable to gain access to the property after using its best efforts to obtain permission from the party that owns or controls the property; and (2) the evidence otherwise supports a reasonable conclusion that the building is structurally substandard. (d) A parcel is deemed to be occupied by a structurally substandard building for purposes of the finding under paragraph (a) or by the improvement described in paragraph (e) if all of the following conditions are inet: (1) the parcel was occupied by a substandard building or met the requirements of paragraph (e), as the case may be, within three years of the filing of the request for certification of the parcel as part of the district with the county auditor; (2) the substandard building or the improvements described in paragraph (e) were demolished or removed by the authority or the demolition or removal was financed by the authority or was done by a developer under a development agreement with the authority; (3) the authority found by resolution before the demolition or removal that the parcel was occupied by a structurally substandard building or met the requirement ofparagraph (e) and that after demolition and clearance the authority intended to include the parcel within a district; and (4) upon filing the request for certification of the tax capacity of the parcel as part of a district, the authority notifies the county auditor that the original tax capacity of the parcel must be adjusted as provided by § 469.177, subdivision 1, paragraph (f). (e) For purposes of this subdivision, a parcel is not occupied by buildings, streets, utilities, paved or gravel parking lots or other similar structures unless 15 percent of the area of the parcel contains buildings, streets, utilities, paved or gravel parking lots or other similar structures. (f) For districts consisting of two or more noncontiguous areas, each area must qualify as a redevelopment district under paragraph (a) to be included in the district, and the entire area of the district must satisfy paragraph (a). In meeting the statutory criteria the City relies on the following facts and findings: The District is a redevelopment district consisting of one parcel. An inventory shows that parcels consisting of more than 70 percent of the area in the District are occupied by buildings, streets, utilities, paved or gravel parking lots or other similar structures. An inspection of the single building located within the District finds that it is structurally substandard as defined in the TIF Act. (See Appendix F). Pursuant to M.S., Section 469.176, Subd. 7, the District does not contain any parcel or part of a parcel that qualified under the provisions of M.S., Sections 273.111, 273.112, or 273.114 or Chapter 473H for taxes payable in any of the five calendar years before the filing of the request for certification of the District. City of Lauderdale Tax Increment Financing Plan for Tax Increment Financing District No. 1-2 1-3 Subsection 1-7. Duration and First Year of Tax Increment of the District Pursuant to M.S., Section 469.175, Subd. 1, and Section 469.176, Subd. 1, the duration and first year of tax increment of the District must be indicated within the TIF Plan. Pursuant to M.S., Section 469.176, Subd. 1 b., the durationof the District will be 25 years after receipt of the first increment by the City (a total of 26 years of tax increment). The City elects to receive the first tax increment in 2020, which is no later than four years following the year of approval of the District. Thus, it is estimated that the District, including any modifications of the TIF Plan for subsequent phases or other changes, would terminate after 2045, or when the TIF Plan is satisfied. The City reserves the right to decertify the District prior to the legally required date. Subsection 1-8. Original Tax Capacity, Tax Rate and Estimated Captured Net Tax Capacity Valuellncrement and Notification of Prior Planned Improvements Pursuant to M.S., Section 469.174, Subd. 7 and M.S., Section 469.177, Subd. 1, the Original Net Tax Capacity (ONTC) as certified for the District will be based on the market values placed on the property by the assessor in 2017 for taxes payable 2018. Pursuant to M.S., Section 469.177, Subds. 1 and 2, the County Auditor shall certify in each year (beginning in the payment year 2020) the amount by which the original value has increased or decreased as a result of: 1. Change in tax exempt status of property; 2. Reduction or enlargement of the geographic boundaries of the district; 3. Change due to adjustments, negotiated or court-ordered abatements; 4. Change in the use of the property and classification; 5. Change in state law governing class rates; or 6. Change in previously issued building permits. In any year in which the current Net Tax Capacity (NTC) value of the District declines below the ONTC, no value will be captured and no tax increment will be payable to the City. • The original local tax rate for the District will be the local tax rate for taxes payable 2018, assuming the request for certification is made before June 30, 2018. The ONTC and the Original Local Tax Rate for the District appear in the table below. Pursuant to M.S., Section 469.174 Subd. 4 and M.S., Section 469.177, Subd. 1, 2, and 4, the estimated Captured Net Tax Capacity (CTC) of the District, within Development District No. 1, upon completion of the projects within the District, will annually approximate tax increment revenues as shown in the table below. The City requests 100 percent of the available increase in tax capacity for repayment of its obligations and current expenditures, beginning in the tax year payable 2020. The Project Tax Capacity (PTC) listed is an estimate of values when the projects within the District are completed. Project Estimated Tax Capacity upon Completion (PTC) $243,750 Original Estimated Net Tax Capacity (ONTC) $9,193 Estimated Captured Tax Capacity (CTC) $234,557 Original Local Tax Rate 1.13109 Estimated Annual Tax Increment (CTC x Local Tax Rate) $265,305 Percent Retained by the City 100% Estimated Pay 2018 City of Lauderdale Tax Increment Financing Plan for Tax Increment Financing District No. 1-2 1-4 Pursuant to M.S., Section 469.177, Subd. 4, the City shall, after a due and diligent search, accompany its request for certification to the County Auditor or its notice of the District enlargement pursuant to M.S., Section 469.175, Subd. 4, with a listing of all properties within the District or area of enlargement for which building permits have been issued during the eighteen (18) months immediately preceding approval of the TIF Plan by the municipality pursuant to M.S., Section 469.175, Subd. 3. The County Auditor shall increase the original net tax capacity of the District by the net tax capacity of improvements for which a building permit was issued. The City has reviewed the area to be included in the District and found no parcels for which building permits have been issued during the 18 months immediately preceding approval of the TIF Plan by the City. Subsection 1-9. Sources of Revenue/Bonds to be Issued The costs outlined in the Uses of Funds will be financed primarily through the annual collection of tax increments. The City reserves the right to incur bonds or other indebtedness as a result of the TIF Plan. As presently proposed, the project within the District will be financed by a bond issue, interfund loan and/or transfer of funds needed if tax increment isn't adequate to cover debt service on the bonds. Based upon future development on the site, the City may issue a pay-as-you-go note to a private developer. Any refunding amounts will be deemed a budgeted cost without a formal TIF Plan Modification. This provision does not obligate the City to incur debt. The City will issue bonds or incur other debt only upon the determination that such action is in the best interest of the City. The total estimated tax increment revenues for the District are shown in the table below: SOURCES OF FUNDS TOTAL Tax Increment $6,873,114 Interest $687,311 TOTAL $7,560,425 The City may issue bonds (as defined in the TIF Act) secured in whole or in part with tax increments from the District in a maximum principal amount of $4,977,960. Such bonds may be in the form of pay-as-you-go notes, revenue bonds or notes, general obligation bonds, or interfund loans. This estimate of total bonded indebtedness is a cumulative statement of authority under this TIF Plan as of the date of approval. Subsection 1-10. Uses of Funds Currently under consideration for the District is a proposal to facilitate construction of up to 130 market rate apartments. The City has determined that it will be necessary to provide assistance to the project(s) for certain District costs, as described. The City has studied the feasibility of the development or redevelopment of property in and around the District. To facilitate the establishment and development or redevelopment of the District, this TIF Plan authorizes the use of tax increment financing to pay for the cost of certain eligible expenses. The estimate of public costs and uses of funds associated with the District is outlined in the following table. City of Lauderdale Tax Increment Financing Plan for Tax Increment Financing District No. 1-2 1-5 USES OF TAX INCREMENT FUNDS TOTAL Land/Building Acquisition $1,300,000 Site Improvements/Preparation $1,500,000 Utilities $200,000 Other Qualifying Improvements $1,290,649 Administrative Costs (up to 10%) $687,311 PROJECT COST TOTAL $4,977,960 Interest $2,582,465 PROJECT AND INTEREST COSTS TOTAL $7,560,425 The total project cost, including financing costs (interest) listed in the table above does not exceed the total projected tax increments for the District as shown in Subsection 2-9. Estimated costs associated with the District are subject to change among categories without a modification to this TIF Plan. The cost of all activities to be considered for tax increment financing will not exceed, without formal modification, the budget above pursuant to the applicable statutory requirements. Pursuant to M.S., Section 469.1763, Subd. 2, no more than 25 percent of the tax increment paid by property within the District will be spent on activities related to development or redevelopment outside of the District but within the boundaries of Development District No. 1, (including administrative costs, which are considered to be spent outside of the District) subject to the limitations as described in this TIF Plan. Subsection 1-11. Fiscal Disparities Election Pursuant to M.S., Section 469.177, Subd. 3, the City may elect one of two methods to calculate fiscal disparities. If the calculations pursuant to M.S., Section 469.177, Subd. 3, clause b, (within the District) are followed, the following method of computation shall apply: (1) The original net tax capacity shall be determined before the application of the fiscal disparity provisions of Chapter 276A or 473F. The current net tax capacity shall exclude any fiscal disparity commercial -industrial net tax capacity increase between the original year and the current year multiplied by the fiscal disparity ratio determined pursuant to M.S., Section 276A.06, subdivision 7 or M.S., Section 473F.08, subdivision 6. Where the original net tax capacity is equal to or greater than the current net tax capacity, there is no captured tax capacity and no tax increment determination. Where the original tax capacity is less than the current tax capacity, the difference between the original net tax capacity and the current net tax capacity is the captured net tax capacity. This amount less any portion thereof which the authority has designated, in its tax increment financing plan, to share with the local taxing districts is the retained captured net tax capacity of the authority. (2) The county auditor shall exclude the retained captured net tax capacity of the authority from the net tax capacity of the local taxing districts in determining local taxing district tax rates. The local tax rates so determined are to be extended against the retained captured net tax capacity of the authority as well as the net tax capacity of the local taxing districts. The tax generated by the extension of the less of (A) the local taxing district tax rates or (B) the original local tax rate City of Lauderdale Tax Increment Financing Plan for Tax Increment Financing District No. 1-2 1-6 to the retained captured net tax capacity of the authority is the tax increment of the authority. The City will choose to calculate fiscal disparities by clause b. It is not anticipated that the District will contain commercial/industrial property. As a result, there should be no impact due to the fiscal disparities provision on the District. According to M.S., Section 469.177, Subd. 3: (c) The method of computation of tax increment applied to a district pursuant to paragraph (a) or (b) shall remain the same for the duration of the district, except that the governing body may elect to change its election from the method of computation in paragraph (a) to the method in paragraph (b). Subsection 1-12. Business Subsidies Pursuant to M.S., Section 1165993, Subd. 3, the following forms of financial assistance are not considered a business subsidy:. (1) A business subsidy of less than $150,000; (2) Assistance that is generally available to all businesses or to a general class of similar businesses, such as a line of business, size, location, or similar general criteria; (3) Public improvements to buildings or lands owned by the state or local government that serve a public purpose and do not principally benefit a single business or defined group of businesses at the time the improvements are made; (4) Redevelopment property polluted by contaminants as defined in M.S., Section 1165552, Subd. 3; (5) Assistance provided for the sole purpose of renovating old or decaying building stock or bringing it up to code and assistance provided for designated historic preservation districts, provided that the assistance is equal to or less than 50% of the total cost; (6). Assistance to provide job readiness and training services if the sole purpose of the assistance is to provide those services; (7) Assistance for housing; (8) Assistance for pollution control or abatement, including assistance for a tax increment financing hazardous substance subdistrict as defined under M.S., Section 469.174, Subd. 23; (9) Assistance for energy conservation; (10) Tax reductions resulting from conformity with federal tax law; - (11) Workers' compensation and unemployment compensation; (12) Benefits derived from regulation; (13) Indirect benefits derived from assistance to educational institutions; (14) Funds from bonds allocated under chapter 474A, bonds issued to refund outstanding bonds, and bonds issued for the benefit of an organization described in section 501 (c) (3) of the Internal Revenue Code of 1986, as amended through December 31, 1999; (15) Assistance for a collaboration between a Minnesota higher education institution and a business; (16) Assistance for a tax increment financing soils condition district as defined under M.S., Section 469.174, Subd. 19; (17) Redevelopment when the recipient's investment in the purchase of the site and in site preparation is 70 percent or more of the assessor's current year's estimated market value; (18) General changes in tax increment financing law and other general tax law changes of a principally technical nature; (19) Federal assistance until the assistance has been repaid to, and reinvested by, the state or local government agency; (20) Funds from dock and wharf bonds issued by a seaway port authority; City of Lauderdale Tax Increment Financing Plan for Tax Increment Financing District No. 1-2 1-7 (21) Business loans and loan guarantees of $150,000 or less; (22) Federal loan funds provided through the United States Department of Commerce, Economic Development Administration; and (23) Property tax abatements granted under M.S., Section 469.1813 to property that is subject to valuation under Minnesota Rules, chapter 8100. The City expects that the tax increment assistance provided under this TIF Plan will not constitute a business subsidy, because such assistance will qualify for an exemption under Minnesota Statutes, Section 1161993, Subdivision 3 (7). The City will comply with M.S., Sections 1161993 to 1161995 to the extent the tax increment assistance under this TIF Plan does not fall under any of the above exemptions. Subsection 1-13. County Road Costs Pursuant to M.S., Section 469.175, Subd. la, the county board may require the City to pay for all or part of the cost of county road improvements if the proposed development to be assisted by tax increment will, in the judgment of the county, substantially increase the use of county roads requiring construction of road improvements or other road costs and if the road improvements are not scheduled within the next five years under a capital improvement plan or within five years under another county plan. If the county elects to use increments to improve county roads, it must notify the City within forty-five days of receipt of this TIF Plan. In the opinion of the City and consultants, the proposed development outlined in this TIF Plan will have little or no impact upon county roads, therefore the TIF Plan was not forwarded to the county 45 days prior to the public hearing. The City is aware that the county could claim that tax increment should be used for county roads, even after the public hearing. Subsection 1-14. Estimated Impact on Other Taxing Jurisdictions The estimated impact on other taxing jurisdictions assumes that the redevelopment contemplated by the TIF Plan would occur without the creation of the District. However, the City has determined that such development or redevelopment would not occur "but for" tax increment financing and that, therefore, the fiscal impact on other taxing jurisdictions is $0. The estimated fiscal impact of the District would be as follows if the "but for" test was not met: IMPACT ON TAX BASE 2017/Pay 2018 Total Net Tax Capacity Ramsey County 496,357,455 City of Lauderdale 2,119,846 Roseville ISD No. 623 63,035,064 Estimated Captured Tax Capacity (CTC) Upon Completion 234,557 234,557 234,557 Percent of CTC to Entity Total 0.0473% 11.0648% 0.3721% City of Lauderdale Tax Increment Financing Plan for Tax Increment Financing District No. 1-2 1-8 IMPACT ON TAX RATES Pay 2018 Percent Potential Proposed of Total CTC Taxes Extension Rates Ramsey County 0.536920 47.47% 234,557 125,938 City of Lauderdale 0.299100 26.44% 234,557 70,156 Roseville ISD No. 623 0.212920 18.82% 234,557 49,942 Other 0.082150 7.26% 234.557 19,269 Total 1.131090 100.00% 265,305 The estimates listed above display the captured tax capacity when all construction is completed. The tax rate used for calculations is the estimated Pay 2018 rate. The total net capacity for the entities listed above are based on estimated Pay 2018 figures. The District will be certified under the actual Pay 2018 rates, which were unavailable at the time this TIF Plan was prepared. Pursuant to M.S. Section 469.175 Subd. 2(b): (1) Estimate of total tax increment. It is estimated that the total amount of tax increment that will be generated over the life of the District is $6,873,114. (2) Probable impact of the District on city provided services and ability to issue debt. An impact of the District on police protection is not expected. The City currently contracts with the St. Anthony Police Department for police services. With any addition of new residents or businesses, police calls for service may be increased. New developments may add an increase in traffic, and additional overall demands to the call load. The City does not expect that the proposed development, in and of itself, will necessitate new capital investment or require that the City expand its contract with the St. Anthony Police Department. (3) The City currently contracts with the Falcon Heights Fire Department, and the probable impact of the District on fire protection is not expected to be significant. Typically new buildings generate few calls, if any, and are of superior construction. The impact of the District on public infrastructure is expected to be minimal. The development is not expected to significantly impact any traffic movements in the area. The current infrastructure for sanitary sewer, storm sewer and water will be able to handle the additional volume generated from the proposed development. Based on the development plans, there are no additional costs associated with street maintenance, sweeping, plowing, lighting and sidewalks. The development in the District is expected to contribute to sanitary sewer (SAC) and water (WAC) connection fees. The probable impact of any District general obligation tax increment bonds on the ability to issue debt for general fund purposes is expected to be minimal. It is anticipated that there will be general obligation debt issued in relation to this project on a temporary basis but that there will be no impact on the City's ability to issue future debt or on the City's debt limit. Estimated amount of tax increment attributable to school district levies. It is estimated that 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 City of Lauderdale Tax Increment Financing Plan for Tax Increment Financing District No. 1-2 1-9 remained the same, is $1,293,520; (4) Estimated amount of tax increment attributable to county levies. It is estimated that 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 $3,262,667; (5) Additional information requested by the county or school district. The City is not aware of any standard questions in a county or school district written policy regarding tax increment districts and impact on county or school district services. The county or school district must request additional information pursuant to M.S. Section 469.175 Subd. 2(b) within 15 days after receipt of the tax increment financing plan. No requests for additional information from the county or school district regarding the proposed development for the District have been received. Subsection 1-15. Supporting Documentation Pursuant to MS. Section 469.175, Subd. 1 (a), clause 7 the TIF Plan must contain identification and description of studies and analyses used to make the determination set forth in M.S. Section 469.175, Subd. 3, clause (b)(2) and the findings are required in the resolution approving the District. Following is a list of reports and studies on file at the City that support the City's findings: • Draft City Comprehensive Plan Subsection 1-16. Definition of Tax Increment Revenues Pursuant to M.S., Section 469.174, Subd. 25, tax increment revenues derived from a tax increment financing district include all of the following potential revenue sources: 1. Taxes paid by the captured net tax capacity, but excluding any excess taxes, as computed under M.S., Section 469.177; 2. The proceeds from the sale or lease of property, tangible or intangible, to the extent the property was purchased by the authority with tax increments; 3. Principal and interest received on loans or other advances made by the authority with tax increments; 4. Interest or other investment earnings on or from tax increments; 5. Repayments or return of tax increments made to the Authority under agreements for districts for which the request for certification was made after August 1, 1993; and 6. The market value homestead credit paid to the Authority under M.S., Section 273.1384. Subsection 1-17. Modifications to the District In accordance with M.S., Section 469.175, Subd. 4, any: 1. Reduction or enlargement of the geographic area of the District, if the reduction does not meet the requirements of M.S., Section 469.175, Subd. 4(e); 2. Increase in amount of bonded indebtedness to be incurred; 3. A determination to capitalize interest on debt if that determination was not a part of the original TIF Plan; 4. Increase in the portion of the captured net tax capacity to be retained by the City; 5. Increase in the estimate of the cost of the District, including administrative expenses, that will be paid or financed with tax increment from the District; or City of Lauderdale Tax Increment Financing Plan for Tax Increment Financing District No. 1-2 1-10 6. Designation of additional property to be acquired by the City, shall be approved upon the notice and after the discussion, public hearing and findings required for approval of the original TIF Plan. Pursuant to M.S. Section 469.175 Subd. 4(2, the geographic area of the District may be reduced, but shall not be enlarged after five years following the date of certification of the original net tax capacity by the county auditor. If a redevelopment district is enlarged, the reasons and supporting facts for the determination that the addition to the district meets the criteria of M.S., Section 469.174, Subd. 10, must be documented in writing and retained. The requirements of this paragraph do not apply if (1) the only modification is elimination of parcel(s) from the District and (2)(A) the current net tax capacity of the parcel(s) eliminated from the District equals or exceeds the net tax capacity of those parcel(s) in the District's original net tax capacity or (B) the City agrees that, notwithstanding M.S., Section 469.177, Subd. 1, the original net tax capacity will be reduced by no more than the current net tax capacity of the parcel(s) eliminated from the District. The City must notify the County Auditor of any modification to the District. Modifications to the District in the form of a budget modification or an expansion of the boundaries will be recorded in the TIF Plan. Subsection 1-18. Administrative Expenses In accordance with M.S., Section 469.174, Subd. 14, administrative expenses means all expenditures of the City, other than: 1. Amounts paid for the purchase of land; 2. Amounts paid to contractors or others providing materials and services, including architectural and engineering services, directly connected with the physical development of the real property in the District; 3. Relocation benefits paid to or services provided for persons residing or businesses located in the District; 4. Amounts used to pay principal or interest on, fund a reserve for, or sell at a discount bonds issued pursuant to M.S., Section 469.178; or 5. Amounts used to pay other financial obligations to the extent those obligations were used to finance costs described in clauses (1) to (3). For districts for which the request for certification were made before August 1, 1979, or after June 30, 1982, and before August 1, 2001, administrative expenses also include amounts paid for services provided by bond counsel, fiscal consultants, and planning or economic development consultants. Pursuant to M.S., Section 469.176, Subd. 3, tax increment may be used to pay any authorized and documented administrative expenses for the District up to but not to exceed 10 percent of the total estimated tax increment expenditures authorized by the TIF Plan or the total tax increments, as defined by M.S., Section 469.174, Subd. 25, clause (1), from the District, whichever is less. For districts for which certification was requested after July 31, 2001, no tax increment may be used to pay any administrative expenses for District costs which exceed ten percent of total estimated tax increment expenditures authorized by the TIF Plan or the total tax increments, as defined in M.S., Section 469.174, Subd. 25, clause (1), from the District, whichever is less. Pursuant to M.S., Section 469.176, Subd. 4h, tax increments may be used to pay for the County's actual administrative expenses incurred in connection with the District and are not subject to the percentage limits ofM.S., Section 469.176, Subd. 3. The county may require payment of those expenses by February 15 of the City of Lauderdale Tax Increment Financing Plan for Tax Increment Financing District No. 1-2 1-11 year following the year the expenses were incurred. Pursuant to M.S., Section 469. 177, Subd. 11, the County Treasurer shall deduct an amount (currently .36 percent) of any increment distributed to the City and the County Treasurer shall pay the amount deducted to the State Commissioner of Management and Budget for deposit in the state general fund to be appropriated to the State Auditor for the cost of financial reporting of tax increment financing information and the cost of examining and auditing authorities' use of tax increment financing. This amount may be adjusted annually by the Commissioner of Revenue. Subsection 1-19. Limitation of Increment The tax increment pledged to the payment of bonds and interest thereon may be discharged and the District may be terminated if sufficient funds have been irrevocably deposited in the debt service fund or other escrow account held in trust for all outstanding bonds to provide for the payment of the bonds at maturity or redemption date. Pursuant to M.S., Section 469.176, Subd. 6: if, after four years from the date of certification of the original net tax capacity of the tax increment financing district pursuant toMS., Section 469.177, no demolition, rehabilitation or renovation of property or other site preparation, including qualified improvement of a street adjacent to a parcel but not installation of utility service including sewer or water systems, has been commenced on a parcel located within a tax increment financing district by the authority or by the owner of the parcel in accordance with the tax increment financing plan, no additional tax increment may be taken from that parcel, and the original net tax capacity of that parcel shall be excluded from the original net tax capacity of the tax increment financing district. If the authority or the owner of the parcel subsequently commences demolition, rehabilitation or renovation or other site preparation on that parcel including qualified improvement of a street adjacent to that parcel, in accordance with the tax increment financing plan, the authority shall certifi, to the county auditor that the activity has commenced and the county auditor shall cert the net tax capacity thereof as most recently certified by the commissioner of revenue and add it to the original net tax capacity of the tax increment financing district. The county auditor must enforce the provisions of this subdivision. The authority must submit to the county auditor evidence that the required activity has taken place for each parcel in the district. The evidence for a parcel must be submitted by February 1 of the fifth year following the year in which the parcel was certified as included in the district. For purposes of this subdivision, qualified improvements of a street are limited to (1) construction or opening of a new street, (2) relocation of a street, and (3) substantial reconstruction or rebuilding of an existing street. The City or a property owner must improve parcels within the District by approximately January 2022 and report such actions to the County Auditor. Subsection 1-20. Use of Tax Increment The City hereby determines that it will use 100 percent of the captured net tax capacity of taxable property located in the District for the following purposes: 1. To pay the principal of and interest on bonds issued to finance a project; 2. to finance, or otherwise pay the capital and administration costs of Development District No. 1 pursuant to M.S., Sections 469.124 to 469.133; City of Lauderdale Tax Increment Financing Plan for Tax Increment Financing District No. 1-2 1-12 3. To pay for project costs as identified in the budget set forth in the TIF Plan; 4. To finance, or otherwise pay for other purposes as provided in M.S., Section 469.176, Subd. 4; 5. To pay principal and interest on any loans, advances or other payments made to or on behalf of the City or for the benefit of Development District No. 1 by a developer; 6. To finance or otherwise pay premiums and other costs for insurance or other security guaranteeing the payment when due of principal of and interest on bonds pursuant to the TIF Plan or pursuant to M.S., Chapter 462C. M.S., Sections 469.152 through 469.165, and/or M.S., Sections 469.178; and 7. To accumulate or maintain a reserve securing the payment when due of the principal and interest on the tax increment bonds or bonds issued pursuant to M.S., Chapter 462C, M.S., Sections 469.152 through 469.165, and/or MS., Sections 469.178. These revenues shall not be used to circumvent any levy limitations applicable to the City nor for other purposes prohibited by M.S., Section 469.176, Subd. 4. Subsection 1-21. Excess Increments Excess increments, as defined in M. S., Section 469.176, Subd. 2, shall be used only to do one or more of the following: 1. Prepay any outstanding bonds; 2. Discharge the pledge of tax increment for any outstanding bonds; 3. Pay into an escrow account dedicated to the payment of any outstanding bonds; or 4. Return the excess to the County Auditor for redistribution to the respective taxing jurisdictions in proportion to their local tax rates. The City must spend or return the excess increments under paragraph (c) within nine months after the end of the year. In addition, the City may, subject to the limitations set forth herein, choose to modify the TIF Plan in order to finance additional public costs in Development District No. 1 or the District. Subsection 1-22. Requirements for Agreements with the Developer The City will review any proposal for private development to determine its conformance with the Development Program and with applicable municipal ordinances and codes. To facilitate this effort, the following documents may be requested for review and approval: site plan, construction, mechanical, and electrical system drawings, landscaping plan, grading and storm drainage plan, signage system plan, and any other drawings or narrative deemed necessary by the City to demonstrate the conformance of the development with City plans and ordinances. The City may also use the Agreements to address other issues related to the development. Pursuant to M.S., Section 469.176, Subd. 5, no more than 25 percent, by acreage, of the property to be acquired within Development District No. 1 as set forth in the TIF Plan shall at any time be owned by the City as a result of acquisition with the proceeds of bonds issued pursuant to M.S., Section 469.178 to which tax increments from property acquired is pledged, unless prior to acquisition in excess of 25 percent of the acreage, the City concluded an agreement for the development or redevelopment of the property acquired and which provides recourse for the City should the development or redevelopment not be completed. Subsection 1-23. Assessment Agreements Pursuant to M.S., Section 469.177, Subd. 8, the City may enter into a written assessment agreement in recordable form with the developer of property within the District which establishes a minimum market value of the land and completed improvements for the duration of the District. The assessment agreement shall be City of Lauderdale Tax Increment Financing Plan for Tax Increment Financing District No. 1-2 1-13 presented to the County Assessor who shall review the plans and specifications for the improvements to be constructed, review the market value previously assigned to the land upon which the improvements are to be constructed and, so long as the minimum market value contained in the assessment agreement appears, in the judgment of the assessor, to be a reasonable estimate, the County Assessor shall also certify the minimum market value agreement. Subsection 1-24. Administration of the District Administration of the District will be handled by the City Administrator. Subsection 1-25. Annual Disclosure Requirements Pursuant to M.S., Section 469.175, Subds. 5, 6, and 6b the City must undertake financial reporting for all tax increment financing districts to the Office of the State Auditor, County Board and County Auditor on or before August 1 of each year. M.S., Section 469.175, Subd. 5 also provides that an annual statement shall be published in a newspaper of general circulation in the City on or before August 15. If the City fails to make a disclosure or submit a report containing the information required by M.S., Section 469.175 Subd. 5 and Subd. 6, the Office of the State Auditor will direct the County Auditor to withhold the distribution of tax increment from the District. Subsection 1-26. Reasonable Expectations As required by the TIF Act, in establishing the District, the determination has been made that the anticipated development would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the District permitted by the TIF Plan. In making said determination, reliance has been placed upon written representation made by the developer to such effects and upon City staff awareness of the feasibility of developing the project site(s) within the District. A comparative analysis of estimated market values both with and without establishment of the District and the use of tax increments has been performed as described above. Such analysis is included with the cashflow in Appendix D, and indicates that the increase in estimated market value of the proposed development (less the indicated subtractions) exceeds the estimated market value of the site absent the establishment of the District and the use of tax increments. Subsection 1-27. Other Limitations on the Use of Tax Increment 1. General Limitations. All revenue derived from tax increment shall be used in accordance with the TIF Plan. The revenues shall be used to finance, or otherwise pay the capital and administration costs of Development District No. 1 pursuant to M.S., Sections 469.124 to 469.133. Tax increments may not be used to circumvent existing levy limit law. No tax increment may be used for 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. This provision does not prohibit the use of revenues derived from tax increments for the construction or renovation of a parking structure. 2. Pooling Limitations. At least 75 percent of tax increments from the District must be expended on activities in the District or to pay bonds, to the extent that the proceeds of the bonds were used to finance activities within said district or to pay, or secure payment of, debt service on credit enhanced bonds. Not City of Lauderdale Tax Increment Financing Plan for Tax Increment Financing District No. 1-2 1-14 more than 25 percent of said tax increments may be expended, through a development fund or otherwise, on activities outside of the District except to pay, or secure payment of, debt service on credit enhanced bonds. For purposes of applying this restriction, all administrative expenses must be treated as if they were solely for activities outside of the District. 3. Five Year Limitation on Commitment of Tax Increments. Tax increments derived from the District shall be deemed to have satisfied the 75 percent test set forth in paragraph (2) above only if the five year rule set forth in M.S., Section 469.1763, Subd. 3, has been satisfied; and beginning with the sixth year following certification of the District, 75 percent of said tax increments that remain after expenditures permitted under said five year rule must be used only to pay previously committed expenditures or credit enhanced bonds as more fully set forth in M.S., Section 469.1763, Subd. 5. 4. Redevelopment District. At least 90 percent of the revenues derived from tax increment from a redevelopment district must be used to finance the cost of correcting conditions that allow designation of redevelopment and renewal and renovation districts under MS., Section 469.176 Subd. 4j. These costs include, but are not limited to, acquiring properties containing structurally substandard buildings or improvements or hazardous substances, pollution, or contaminants, acquiring adjacent parcels necessary to provide a site of sufficient size to permit development, demolition and rehabilitation of structures, clearing of the land, the removal of hazardous substances or remediation necessary for development of the land, and installation of utilities, roads, sidewalks, and parking facilities for the site. The allocated administrative expenses ofthe City, including the cost of preparation of the development action response plan, may be included in the qualifying costs. Subsection 1-28. Summary The City of Lauderdale is establishing the District to preserve and enhance the tax base, redevelop substandard areas, and provide employment opportunities in the City. The TIF Plan for the District was prepared by Ehlers & Associates, Inc., 3060 Centre Pointe Drive, Roseville, Minnesota 55113, telephone (651) 697-8500. City of Lauderdale Tax Increment Financing Plan for Tax Increment Financing District No. 1-2 1-15 Appendix A Project Description The City intends to purchase the existing property for the future redevelopment of the site. Future development anticipated is up to 130 units of market rate apartments. It is anticipated that the City will sell GO TIF bonds to pay for the acquisition and demolition of the structure to prepare the site for development. Appendix A-1 Appendix B Map of Development District No. 1 and the District Appendix B-1 Tax Increment Financing District No. 1-2 Legend Gill City Halls Schools al Hospitals a©> Fire Stations $ Police Stations Rc Recreational Centers Parcel Points 0 Cities Boundaries of the City of Lauderdale Lam The boundaries of Development District No. 1 are being expanded to be coterminous with the corporate boundaries of the City of Lauderdale. TAX INCREMENT FINANCING DISTRICT NO. 1-2 DEVELOPMENT DISTRICT NO. 1 (GEOGRAPHIC EXPANSION) CITY OF LAUDERDALE RAMSEY COUNTY, MINNESOTA Appendix C Description of Property to be Included in the District The District encompasses all property and adjacent rights-of-way and abutting roadways identified by the parcel listed below. Parcel Numbers Address Owner 17.29.23.33.0001 1795 Eustis St. Chinese Christian Church Appendix C-1 Appendix D Estimated Cash Flow for the District Appendix D-1 Base Value Assumptions - Page 1 F- W 5 r N 0) N Chinese Church Redevelopment - No Inflation City of Lauderdale 130 Market Rate Apartments Redevelopment o 0 0 0 0 0 0 0 o 10 O )0 N 0 0 � 0 r N 00 O ON N 0 e 0 0100 O N O 'Lai) m -.— U w0 0: m -o m Q N cc 0 ---7 0 CC I m r.m 1 w U0 a m 0 t m d 000) Z x 00 a00�-00 NOO -642882T,588.1288228-2 0 X0. L0t0O� - 0 o O V 00 �0 W _ � t (0 L0 (0 10 (0 m m f9 to .0 y O H fA 'y fA fA 'C V3 HS E N m = 1 C 0.1 C OIC 0 0 m 0 0 0 N 0 o I' -O � a0 u- OLL Oz Um��_°' m m m d a Oco EE E m mo = 0.0 c0i 0 O O 0.1 O 0 ) W U 00< Z 2 < rrrr rn 000000 N N N N N N n.0_0_0_ N N tO (0 l0 0.0. M 0.. W.. N N V m N o \\\ 0 0 N00 N Nc,--- N mm000LO 0-00O0N 64.--L2›, a Ern 0' rn o0 F. -ac Vo�� ui -t.-„. 0 N Z ^ x x O m E m d 0 p 2 m C j O •C m O O •- =, L'' m C O TE N > O C '1.' 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V V .44 '7 '7 VI ,4-- CO 7 N N (0 N N N (MV CO CO CO (MV N N CO CO N CO CO N CO N N N N N (MV CO M CO 0) M M 0) CO CO CO CO CO CO M 0) 10 M M M M CO CO CO CO CO CO m m m m CO m m m m m m 0 m CO m m m m m CO m m CO 0 0 0 a) ai m ai 0) m ai ai o) ai of of ai ai of ai m` m m 0 of 0) 0 0 0 0 0 (0 '00 (00 V0) '00 (O() '00 (00 (00 (00 '00 (00 ((00 (00 (00 (00 (O0 '00 V) 03(00 '00 (00 '00 400 '0 0 0 '0 0-0-N.- )- )- r- 1- 0- 1'- 1- n r r r 1- )- 1� h 1- 1- N. r-- 0- i- 0- 0.- vi - V V V V V V V V V V V V V V V MV V MV ,ai t MV 0)V VM '0 '0 V V N N N N N N N N N N N N N N N N N N N N N N N N N N 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o O o 0 0 o O 0 0 0 0 0 0 0 0 0 0 0 0 0 (0 0) ra 0 )- Present Value From 08/01/2018 ota\L uderdale\Housing-Economic-Redevelopment\TIRTIF Dlstrlcts\TIF 1-2\TIFPlan Run - Prepared by Ehlers & Appendix E Minnesota Business Assistance Form (Minnesota Department of Employment and Economic Development) A Minnesota Business Assistance Form (MBAF) should be used to report and/or update each calendar year's activity by April 1 of the following year. Please see the Minnesota Department of Employment and Economic Development (DEED) website at http://www.deed.state.mn.us/Community/subsidies/MBAFForm.htm for information and forms. Appendix E-1 Appendix F Redevelopment Qualifications for the District Appendix F-1 LHB Report of Inspection Procedures and Results for Determining Qualifications of a Tax Increment. Financing District as a Redevelopment District Eustis Street Redevelopment TIF District Lauderdale, Minnesota f — "4-111111t December 18, 2017 Prepared For the City of Lauderdale Prepared by: LHB, Inc. 701 Washington Avenue North, Suite 200 Minneapolis, Minnesota 55401 LHB Project No. 170814 TABLE OF CONTENTS PART 1 — EXECUTIVE SUMMARY 2 Purpose of Evaluation 2 Scope of Work 3 Conclusion 3 PART 2 — MINNESOTA STATUTE 469.174, SUBDIVISION 10 REQUIREMENTS 3 A. Coverage Test 4 B. Condition of Buildings Test 4 C. Distribution of Substandard Buildings 5 PART 3 — PROCEDURES FOLLOWED 6 PART 4 — FINDINGS 6 A. Coverage Test 6 B. Condition of Building Test 7 1. Building Inspection 7 2. Replacement Cost 8 3. Code Deficiencies 8 4. System Condition Deficiencies 9 C. Distribution of Substandard Structures 9 PART 5 - TEAM CREDENTIALS 11 APPENDIX A Property Condition Assessment Summary Sheet APPENDIX B Building Code, Condition Deficiency and Context Analysis Reports APPENDIX C Building Replacement Cost Reports Code Deficiency Cost Reports Photographs Eustis Street Redevelopment TIF District LHB Project No. 170814 Page 1 of 11 Final Report PART 1 - EXECUTIVE SUMMARY PURPOSE OF EVALUATION LHB was hired by the City of Lauderdale to inspect and evaluate the properties within a Tax Increment Financing Redevelopment District ("TIF District") proposed to be established by the City. The proposed TIF District is bound by Malvern Street, Spring Street and. Eustis Street (Diagram 1). The purpose of LHB's work is to determine whether the proposed TIF District meets the statutory requirements for coverage, and whether one (1) building on one (1) parcel, located within the proposed TIF District, meet the qualifications required for a Redevelopment District. Eustis Street Redevelopment TIF District LHB Project No. 170814 Diagram 1— Proposed TIF District Page 2 of 11 Final Report SCOPE OF WORK The proposed TIF District consists of one (1) parcel with one (1) building One (1) building was inspected on December 1, 2017. A Building Code and Condition Deficiency report for the building that was inspected islocated in Appendix B. CONCLUSION After inspecting and evaluating the properties within the proposed TIF District and applying current statutory criteria for a Redevelopment District under Minnesota Statutes, Section 469.174, Subdivision 10, it is our professional opinion that the proposed TIF District qualifies as a Redevelopment District because: • The proposed TIF District has a coverage calculation of 100 percent which is above the 70 percent requirement. • 100 percent of the buildings are structurally substandard which is above the 50 percent requirement. • The substandard buildings are reasonably distributed. The remainder of this report describes our process and findings in detail. PART 2 - MINNESOTA STATUTE 469.174, SUBDIVISION 10 REQUIREMENTS The properties were inspected in accordance with the following requirements under Minnesota Statutes, Section 469.174, Subdivision 10(c), which states: INTERIOR INSPECTION "The municipality may not make such determination [that the building is structurally substandard] without an interior inspection of the property..." EXTERIOR INSPECTION AND OTHER MEANS "An interior inspection of the property is not required, if the municipality finds that (1) the municipality or authority is unable to gain access to the property after using its best efforts to obtain permission from the party that owns or controls the property; and (2) the evidence otherwise supports a reasonable conclusion that the building is structurally substandard." DOCUMENTATION "Written documentation of the findings and reasons why an interior inspection was not conducted must be made and retained under section 469.175, subdivision 3(1)." QUALIFICATION REQUIREMENTS Minnesota Statutes, Section 469.174, Subdivision 10 (a) (1) requires three tests for occupied parcels: Eustis Street Redevelopment TIF District LHB Project No. 170814 Page 3 of 11 Final Report A. COVERAGE TEST ..."parcels consisting of 70 percent of the area of the district are occupied by buildings, streets, utilities, or paved or gravel parking lots..." The coverage required by the parcel to be considered occupied is defined under Minnesota Statutes, Section 469.174, Subdivision 10(e), which states: "For purposes of this subdivision, a parcel is not occupied by buildings, streets, utilities, paved or gravel parking lots, or other similar structures unless 15 percent of the area of the parcel contains buildings, streets, utilities, paved or gravel parking lots, or other similar structures." B. CONDITION OF BUILDINGS TEST Minnesota Statutes, Section 469.174, Subdivision 10(a) states, "...and more than 50 percent of the buildings, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance;" 1. Structurally substandard is defined under Minnesota Statutes, Section 469.174, Subdivision 10(b), which states: "For purposes of this subdivision, `structurally substandard' shall mean containing defects in structural elements or a combination of deficiencies in essential utilities and facilities, light and ventilation, fire protection including adequate egress, layout and condition of interior partitions, or similar factors, which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance." a. We do not count energy code deficiencies toward the thresholds required by Minnesota Statutes, Section 469.174, Subdivision 10(b) defined as "structurally substandard", due to concerns expressed by the State of Minnesota Court of Appeals in the falser Auto Sales, Inc. vs. City of Richfield case filed November 13, 2001. 2. Buildings are not eligible to be considered structurally substandard unless they meet certain additional criteria, as set forth in Subdivision 10(c) which states: "A building is not structurally substandard if it is in compliance with the building code applicable to new buildings or could be modified to satisfy the building code at a cost of less than 15 percent of the cost of constructing a new structure of the same square footage and type on the site. The municipality may find that a building is not disqualified as structurally substandard under the preceding sentence on the basis of reasonably available evidence, such as the size, type, and age of the building, the average cost of plumbing, electrical, or structural repairs, or other similar reliable evidence." "Items of evidence that support such a conclusion [that the building is not disqualified] include recent fire or police inspections, on-site property tax appraisals or housing inspections, exterior evidence of deterioration, or other similar reliable evidence." LHB counts energy code deficiencies toward the 15 percent code threshold required by Minnesota Statutes, Section 469.174, Subdivision 10(0) for the following reasons: ® The Minnesota energy code is one of ten building code areas highlighted by the Minnesota Department of Labor and Industry website where minimum construction standards are required by law. Eustis Street Redevelopment TIF District LHB Project No. 170814 Page 4 of 11 Final Report • Chapter 13 of the 2015 Minnesota Building Code states, `Buildings shall be designed and constructed in accordance with the International Energy Conservation Code." Furthermore, Minnesota Rules, Chapter 1305.0021 Subpart 9 states, "References to the International Energy Conservation Code in this code mean the Minnesota Energy Code..." • The Senior Building Code Representative for the Construction Codes and Licensing Division of the Minnesota Department of Labor and Industry confirmed that the Minnesota Energy Code is being enforced throughout the State of Minnesota. • In a January 2002 report to the Minnesota Legislature, the Management Analysis Division of the Minnesota Department of Administration confirmed that the construction cost of new buildings complying with the Minnesota Energy Code is higher than buildings built prior to the enactment of the code. • Proper TIF analysis requires a comparison between the replacement value of a new building built under current code standards with the repairs that would be necessary to bring the existing building up to current code standards. In order for an equal comparison to be made, all applicable code chapters should be applied to both scenarios. Since current construction estimating software automatically applies the construction cost of complying with the Minnesota Energy Code, energy code deficiencies should also be identified in the existing structures. C. DISTRIBUTION OF SUBSTANDARD BUILDINGS Minnesota Statutes, Section 469.174, Subdivision 10, defines a Redevelopment District and requires one or more of the following conditions, "reasonably distributed throughout the district." (1) "Parcels consisting of 70 percent of the area of the district are occupied by buildings, streets, utilities, paved or gravel parking lots, or other similar structures and more than 50 percent of the buildings, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance; (2) the property consists of vacant, unused, underused, inappropriately used, or infrequently used rail yards, rail storage facilities, or excessive or vacated railroad rights-of-way; (3) tank facilities, or property whose immediately previous use was for tank facilities..." Our interpretation of the distribution requirement is that the substandard buildings must be reasonably distributed throughout the district as compared to the location of all buildings in the district. For example, if all of the buildings in a district are located on one half of the area of the district, with the other half occupied by parking lots (meeting the required 70 percent coverage for the district), we would evaluate the distribution of the substandard buildings compared with only the half of the district where the buildings are located. If all of the buildings in a district are located evenly throughout the entire area of the district, the substandard buildings must be reasonably distributed throughout the entire area of the district. We believe this is consistent with the opinion expressed by the State of Minnesota Court of Appeals in the Walser Auto Sales, Inc. vs. City of Richfield case filed November 13, 2001. Eustis Street Redevelopment TIF District LHB Project No. 170814 Page 5 of 11 Final Report PART 3 - PROCEDURES FOLLOWED LHB inspected one (1) building during the day of December 1, 2017. PART 4 - FINDINGS A. COVERAGE TEST 1. The total square foot area of the parcel in the proposed TIF District was obtained from City records, GIS mapping and site verification. 2. The total square foot area of buildings and site improvements on the parcels in the proposed TIF District was obtained from City records, GIS mapping and site verification. 3. The percentage of coverage for each parcel in the proposed TIF District was computed to determine if the 15 percent minimum requirement was met. The total square footage of parcels meeting the 15 percent requirement was divided into the total square footage of the entire district to determine if the 70 percent requirement was met. FINDING: The proposed TIF District met the coverage test under Minnesota Statutes, Section 469.174, Subdivision 10(e), which resulted in parcels consisting of 100 percent of the area of the proposed TIF District being occupied by buildings, streets, utilities, paved or gravel parking lots, or other similar structures (Diagram 2). This exceeds the 70 percent area coverage requirement for the proposed TIF District under Minnesota Statutes, Section 469.174, Subdivision (a) (1). Eustis Street Redevelopment TIF District LHB Project No. 170814 Page 6 of 11 Final Report Diagram 2 — Coverage Diagram Shaded area depicts a parcel more than 15 percent occupied by buildings, streets, utilities, paved or gravel parking lots or other similar structures B. CONDITION OF BUILDING TEST 1. BUILDING INSPECTION The first step in the evaluation process is the building inspection. After an initial walk- thru, the inspector makes a judgment whether or not a building "appears" to have enough defects or deficiencies of sufficient total significance to justify substantial renovation or clearance. If it does, the inspector documents with notes and photographs code and non - code deficiencies in the building. Eustis Street Redevelopment TIF District LHB Project No. 170814 Page 7 of 11 Final Report 2. REPLACEMENT COST The second step in evaluating a building to determine if it is substandard to a degree requiring substantial renovation or clearance is to determine its replacement cost. This is the cost of constructing a new structure of the same square footage and type on site. Replacement costs were researched using R.S. Means Cost Works square foot models for 2017. A replacement cost was calculated by first establishing building use (office, retail, residential, etc.), building construction type (wood, concrete, masonry, etc.), and blinding size to obtain the appropriate median replacement cost, which factors in the costs of construction in Lauderdale, IVlinnesota. Replacement cost includes labor, materials, and the contractor's overhead and profit. Replacement costs do not include architectural fees, legal fees or other "soft" costs not directly related to construction activities. Replacement cost for each building is tabulated in Appendix A. 3. CODE DEFICIENCIES The next step in evaluating a building is to determine what code deficiencies exist with respect to such building. Code deficiencies are those conditions for a building which are not in compliance with current building codes applicable to new buildings in the State of Minnesota. Minnesota Statutes, Section 469.174, Subdivision 10(c), specifically provides that a building cannot be considered structurally substandard if its code deficiencies are not at least 15 percent of the replacement cost of the building. As a result, it was necessary to determine the extent of code deficiencies for each building in the proposed TIF District. The evaluation was made by reviewing all available information with respect to such buildings contained in City Building Inspection records and making interior and exterior inspections of the buildings. LHB utilizes the current Minnesota State Building Code as the official code for our evaluations. The Minnesota State Building Code is actually a series of provisional codes written specifically for Minnesota only requirements, adoption of several international codes, and amendments to the adopted international codes. After identifying the code deficiencies in each building, we used R.S. Means Cost Works 2017; Unit and Assembly Costs to determine the cost of correcting the identified deficiencies. We were then able to compare the correction costs with the replacement cost of each building to determine if the costs for correcting code deficiencies meet the required 15 percent threshold. FINDING: One (1) out of one (1) building (100 percent) in the proposed TIF District contained code deficiencies exceeding the 15 percent threshold required by Minnesota Statutes, Section 469.174, Subdivision 100. Building Code, Condition Deficiency and Context Analysis reports for the buildings in the proposed TIF District can be found. in Appendix B of this report. Eustis Street Redevelopment TIF District LHB Project No. 170814 Page 8 of 11 Final Report 4. SYSTEM CONDITION DEFICIENCIES If a building meets the minimum code deficiency threshold under Minnesota Statutes, Section 469.174, Subdivision 10(c), then in order for such building to be "structurally substandard" under Minnesota Statutes, Section 469.174, Subdivision 10(b), the building's defects or deficiencies should be of sufficient total significance to justify "substantial renovation or clearance." Based on this definition, LHB re-evaluated each of the buildings that met the code deficiency threshold under Minnesota Statutes, Section 469.174, Subdivision 10(c), to determine if the total deficiencies warranted "substantial renovation or clearance" based on the criteria we outlined above. System condition deficiencies are a measurement of defects or substantial deterioration in site elements, structure, exterior envelope, mechanical and electrical components, fire protection and emergency systems, interior partitions, ceilings, floors and doors. The evaluation of system condition deficiencies was made by reviewing all available information contained in City records, and making interior and exterior inspections of the buildings. LHB only identified system condition deficiencies that were visible upon our inspection of the building or contained in City records. We did not consider the amount of "service life" used up for a particular component unless it was an obvious part of that component's deficiencies. After identifying the system condition deficiencies in each building, we used our professional judgment to determine if the list of defects or deficiencies is of sufficient total significance to justify "substantial renovation or clearance." FINDING: In our professional opinion, one (1) out of one (1) building (100 percent) in the proposed TIF District are structurally substandard to a degree requiring substantial renovation or clearance, because of defects in structural elements or a combination of deficiencies in essential utilities and facilities, light and ventilation, fire protection including adequate egress, layout and condition of interior partitions, or similar factors which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance. This exceeds the 50 percent requirement of Subdivision 10a(1). C. DISTRIBUTION OF SUBSTANDARD STRUCTURES Much of this report has focused on the condition of individual buildings as they relate to requirements identified by Minnesota Statutes, Section 469.174, Subdivision 10. It is also important to look at the distribution of substandard buildings throughout the geographic area of the proposed TIF District (Diagram 3). Eustis Street Redevelopment TIF District LHB Project No. 170814 Page 9 of 11 Final Report FINDING: The parcels with substandard buildings are reasonably distributed compared to all parcels that contain buildings. Eustis Street Redevelopment TIF District LHB Project No. 170814 Diagram 3 — Substandard Buildings Shaded green area depicts parcels with buildings. Shaded orange area depicts substandard buildings. Page 10 of 11 Final Report PART 5 - TEAM CREDENTIALS Michael A. Fischer, AIA, LEED AP - Project Principal/TIFAnalyst Michael has 29 years of experience as project principal, project manager, project designer and project architect on planning, urban design, educational, commercial and governmental projects. He has become an expert on Tax Increment Finance District analysis assisting over 100 cities with strategic planning for TIF Districts. He is an Architectural Principal at LHB and currently leads the Minneapolis office. Michael completed a two-year Bush Fellowship, studying at MIT and Harvard in 1999, earning Masters degrees in City Planning and Real Estate Development from MIT. He has served on more than 50 committees, boards and community task forces, including a term as a City Council President and as Chair of a Metropolitan Planning Organization. Most recently, he served as Chair of the Edina, Minnesota planning commission and is currently a member of the Edina city council. Michael has also managed and designed several award-winning architectural projects, and was one of four architects in the Country to receive the AIA Young Architects Citation in 1997. Philip Waugh — Project Manager/TIF Analyst Philip is a project manager with 13 years of experience in historic preservation, building investigations, material research, and construction methods. He previously worked as a historic preservationist and also served as the preservation specialist at the St. Paul Heritage Preservation Commission. Currently, Phil sits on the Board of Directors for the Preservation Alliance of Minnesota. His current responsibilities include project management of historic preservation projects, performing building condition surveys and analysis, TIF analysis, writing preservation specifications, historic design reviews, writing Historic Preservation Tax Credit applications, preservation planning, and grant writing. Phil Fisher— Inspector For 35 years, Phil Fisher worked in the field of Building Operations in Minnesota including White Bear Lake Area Schools. At the University of Minnesota he earned his Bachelor of Science in Industrial Technology. He is a Certified Playground Safety Inspector, Certified Plant Engineer, and is trained in Minnesota Enterprise Real Properties (MERP) Facility Condition Assessment (FCA). His FCA training was recently applied to the Minnesota Department of Natural Resources Facilities Condition Assessment project involving over 2,000 buildings. o:\17Proj\170814\400 Design\406 Reports\Final Report\170814 20171218 Eustis Street Redevelopment TIF Report.docx APPENDICES APPENDIX A Property Condition Assessment Summary Sheet APPENDIX B Building Code and Condition Deficiencies Reports APPENDIX C Building Replacement Cost Reports Code Deficiency Cost Reports Photographs Eustis Street Redevelopment TIF District LHB Project No. 170814 Page 11 of 11 Final Report APPENDIX A Property Condition Assessment Summary Sheet Lauderdale ment TIF Anal Eustis Street Redevelo d 0) E u '3 my m ON 1 , O c O Z'5 m 0) D Cui LL a U o_ `ro.ert Addres LO CO M N co co ZZr r -- co m N N Interior/Exterior To' E 1795 Eustis St 172923330001 co co 0- 0 0 O O Total Coverage Percent: a 0 0 O O L N T 0 d 0 v m 0 U 0 U d O. N m a G) 0) 0 x a N 0) .0 O U G) a 0 0 a (0 a w N 9 N a G) c E d d a .N Q) a 5 .0 0 c m 0 G) a O:\17Proj\170814\400 Design \406 Reports\Final Report\[170814 20171218 Eustis Street Redevelopment TIF Summary Spreadsheet.xlsx]Property Info Property Condition Assessment Summary Sheet APPENDIX B Building Code, Condition Deficiency and Context Analysis Reports Eustis Street Redevelopment TIF Analysis Building Code, Condition Deficiency and Context Analysis Report December 18, 2017 Parcel No. & Building Name: Parcel A Church Building Address: 1795 Eustis St Lauderdale, MN 55113 Parcel ID: 172923330001 Inspection Date(s) & Time(s): December 1, 2017 10:00 am Inspection Type: Interior and Exterior Summary of Deficiencies: It is our professional opinion that this building is Substandard because: - Substantial renovation is required to correct Conditions found. - Building Code deficiencies total more than 15% of replacement cost, NOT including energy code deficiencies. Estimated Replacement Cost: $3,547,827 Estimated Cost to Correct Building Code Deficiencies: $805,750 Percentage of Replacement Cost for Building Code Deficiencies: 22.71% Defects in Structural Elements 1. Exterior monument walls are separating from the main structure and should be repaired for safety. Combination of Deficiencies 1. Essential Utilities and Facilities a. Exterior thresholds do not comply with code for maximum height. b. Stages are not ADA code compliant for accessibility. c. Door to stage is not ADA code compliant for width. d. Door hardware is not ADA code compliant. 2. Light and Ventilation a. HVAC system does not comply with mechanical/building code. 3. Fire Protection/Adequate Egress a. There are no code required smoke detectors in the building. b. The emergency notification system in the building is not code compliant. c. Emergency lighting in the building is not code compliant. d. There is no code required building sprinkler system installed. Eustis Street Redevelopment TIF Analysis Page 1 of 3 Building Report LHB Project No. 170814 Parcel A, Church Building 4. Layout and Condition of Interior Partitions/Materials a. Interior doors are damaged and delaminating. b. Ceiling tile is stained from water intrusion. c. Baseboards are missing and/or damaged. d. Carpeting is damaged, creating an impediment to emergency egress, contrary to code. e. The interior stair treads do not comply with code for proper rise. f. Basement service stairs are missing code required handrails. g. Interior walls should be repaired and repainted. h. Interior wood surfaces should be refinished. i. Kitchen is not code compliant. 5. Exterior Construction a. Sidewalks are cracked and create an impediment to emergency egress, which is contrary to code. b. Exterior doors should be repainted. c. Exterior brick work is cracked and/or damaged, allowing for water intrusion, which is contrary to code. d. Exterior stucco is cracked, allowing for water intrusion, which is contrary to code. e. Exterior wood panels are damaged/rotting allowing for water intrusion, contrary to code. f. Roofing material is damaged allowing for water intrusion, contrary to code. g. Steel lintels should be protected from rusting per code. h. Windows are broken, allowing for water intrusion, contrary to code. Description of Code Deficiencies 1. Exterior thresholds should be modified to comply with code for minimum height. 2. Two stages are not ADA code compliant for accessibility. 3. Door leading onto stage is not ADA code compliant for minimum width. 4. Door hardware is not ADA code compliant. 5. The HVAC system is not mechanical/building code compliant. 6. Code required smoke detectors should be installed. 7. Code compliant emergency lighting should be installed. 8. Code compliant emergency notification system should be installed. 9. Code required building sprinkler system should be installed. 10. Damaged carpeting should be replaced, creating an unimpeded means for emergency egress. 11. Interior stair treads should be modified to comply with code for proper rise. 12. Code required handrails should be installed on basement service stairway and office stairways. 13. Kitchen is not code compliant. 14. Sidewalks leading from the building should be free of defects to allow for code required unimpeded means for emergency egress. 15. Cracked and damaged brick and mortar should be repaired/repointed to prevent water intrusion per code. 16. Cracked and damaged stucco should be repaired to prevent water intrusion per code. 17. Damaged and rotting wood panels should be replaced to prevent water intrusion per code. 18. Roofing material should be replaced to prevent water intrusion per code. 19. Steel lintels should be protected from rusting per code. 20. Broken / damaged windows should be replaced to prevent water intrusion per code. Eustis Street Redevelopment TIF Analysis Page 2 of 3 Building Report LHB Project No. 170814 Parcel A, Church Building Overview of Deficiencies This building was originally constructed to house elementary school children. It has most recently been used as a church. It is currently unoccupied and in a state of disrepair. Exterior brick work is cracked and damaged. Thresholds do not comply with code for accessibility. Interior walls should be repainted. Interior doors and windows should be refinished. Carpeting is stained and damaged. There are two stages that are not code compliant for accessibility. Interior stairs are not code compliant for rise of tread. Life safety devices are either non-compliant or missing. O:\17Proj\170814\400 Design\406 Reports\Building Reports\170814 1795 Eustis - Church Building - Building Report.docx Eustis Street Redevelopment TIF Analysis Page 3 of 3 Building Report LHB Project No. 170814 Parcel A, Church Building APPENDIX C Building Replacement Cost Reports Code Deficiency Cost Reports Photographs 1,490,911.04 Eustis Street Redevelopment TIF Analysis Replacement Cost Report RSIVJ eans dataSquare Foot Cost Estimate Report f.t ersaorp Date: 12/2/2017• Estimate Name: Church Building City of Lauderdale 1795 Eustis , Lauderdale , Minnesota , 55113 Elementary School, 2-3 Story with Brick Veneer Building Type: / Reinforced Concrete Location: LAUDERDALE, MN Story Count: 2 Story Height (L.F.): 15 Floor Area (S.F.): 15000 Labor Type: OPN Basement Included: Yes Data Release: Year 2018 Cost Per Square Foot: $236.52 Building Cost: $3,547,827.02 Costs are derived from a building model with basic components. Scope differences and market conditions can cause costs to vary significantly. A Substructure of Total 10.54% A1010 Standard Foundations Strip footing, concrete, reinforced, load 11.1 KLF, soil bearing capacity 6 KSF, 12" deep x 24" wide Spread footings, 3000 PSI concrete, load 200K, soil bearing capacity 6 KSF, 6' - 0" square x 20" deep A1030 Slab on Grade Slab on grade, 4" thick, non industrial, reinforced A2010 Basement Excavation Excavate and fill, 10,000 SF, 8' deep, sand, gravel, or common earth, on site storage A2020 Basement Walls Foundation wall, CIP, 12' wall height, pumped, .444 CY/LF, 21.59 PLF, 12" thick Cost Per S.F. Cost 22.65 8.04 339,790.70 120,550.99 1.60 24,004.38 6.44 2.76 2.76 1.87 1.87 9.98 9.98 96,546.61 41,438.78 41,438.78 28,080.53 28,080.53 149,720.40 149,720.40 B Shell 46.23% 99.40 B1010 Floor Construction Cast -in-place concrete column, 12" square, tied, 200K load, 12' story height, 142 lbs/LF, 4000PSI Cast -in-place concrete column, 16", square, tied, minimum reinforcing, 300K load, 10'-14' story height, 240 lbs/LF, 4000PSI Cast -in-place concrete beam and slab, 7.5" slab, two way, 12" column, 25'x25' bay, 40 PSF superimposed load, 149 PSF total load 8.65 129,799.88 Flat slab, concrete, with drop panels, 6" slab/2.5" panel, 12" column, 15'x15' bay, 75 PSF superimposed load, 153 PSF total load 7.04 105,663.38 B1020 Roof Construction 7.96 119,376.38 Roof, concrete, beam and slab, 25'x25' bay, 40 PSF superimposed load, 20" deep beam, 9" slab, 152 PSF total load B2010 Exterior Walls 27.13 406,976.03 7.30 109,472.11 4.14 62,040.66 Eustis Street Redevelopment TIF Analysis LHB Project No. 170814 7.96 35.25 119,376.38 528,739.65 Replacement Cost Report Page 1 of 4 Parcel A, Church Building 439,076.81 Brick wall, composite double wythe, standard face/CMU back-up, 8" thick, perlite core fill, 3" XPS 35.25 528,739.65 B2020 Exterior Windows 22.09 331,290.46 Aluminum flush tube frame, thermo-break frame, 2.25" x 4.5", 5'x6' opening, 2 intermediate horizontals 13.89 208,298.48 Glazing panel, insulating, 1/2" thick, 2 lites 1/8" float glass, tinted 8.20 122,991.98 62030 Exterior Doors 0.67 10,109.50 Door, aluminum & glass, with transom, narrow stile, double door, hardware, 6'-0" x 10'-0" opening 0.16 2,369.73 Door, steel 18 gauge, hollow metal, 1 door with frame, no label, 3'-0" x 7'-0" opening 0.49 7,363.12 Door, steel 24 gauge, overhead, sectional, manual operation, 8'-0" x 8'-0" opening 0.03 376.65 B3010 Roof Coverings 5.38 80,655.17 Roofing, single ply membrane, EPDM, 60 mils, loosely laid, stone ballast 0.86 12,968.93 Insulation, rigid, roof deck, extruded polystyrene, 40 PSI compressive strength, 4" thick, R20 2.20 33,001.95 Base flashing, aluminum, .016" thick, fabric 2 sides, .025" aluminum reglet, .032" counter flashing 1.18 Roof edges, aluminum, duranodic, .050" thick, 6" face 1.14 B3020 Roof Openings 0.92 Roof hatch, with curb, 1" fiberglass insulation, 2'-6" x 3'-0", galvanized steel, 165 Ibs Smoke hatch, unlabeled, galvanized, 2'-6" x 3', not incl hand winch operator 17,639.58 17,044.71 13,763.85 0.80 12,071.82 0.11 1,692.03 C Interiors 13.61% 29.27 C1010 Partitions Concrete block (CMU) partition, light weight, hollow, 6" thick, no finish Concrete block (CMU) partition, light weight, hollow, 6" thick, no finish, foamed in insulation 5.39 0.47 80,848.22 7,072.06 4.92 73,776.16 C1020 Interior Doors 1.67 25,094.66 Door, single leaf, kd steel frame, hollow metal, commercial quality, flush, 3'- 0" x 7'-0" x 1-3/8" 1.67 25,094.66 C1030 Fittings 1.23 18,405.00 Toilet partitions, cubicles, ceiling hung, painted metal 0.88 13,207.41 Chalkboards, liquid chalk type, aluminum frame & chalktrough 0.35 5,197.59 C2010 Stair Construction 0.93 13,938.46 Stairs, steel, pan tread for conc in -fill, picket rai1,12 risers w/ landing 0.93 13,938,46 C3010 Wall Finishes 6.65 99,780.57 2 coats paint on masonry with block filler 3.02 45,239.31 2 coats paint on masonry with block filler 2.90 43,429.74 Ceramic tile, thin set, 4-1/4" x 4-1/4" 0.74 11,111.52 C3020 Floor Finishes 7.36 110,416.05 Carpet, tufted, nylon, roll goods, 12' wide, 36 oz 3.35 50,200.00 Carpet, padding, add to above, 2.7 density 0.11 1,645.79 Vinyl, composition tile, maximum 1.76 26,396.37 Oak strip, sanded and finished, minimum 1.77 26,546.43 Underlayment, plywood, 3/8" thick 0.38 5,627.46 C3030 Ceiling Finishes 6.04 90,593.85 Acoustic ceilings, 3/4" fiberglass board, 24" x 48" tile, tee grid, suspended support 6.04 90,593.85 Eustis Street Redevelopment TIF Analysis Replacement Cost Report LHB Project No. 170814 Page 2 of 4 Parcel A, Church Building 63.70 D Services 29.63% 01010 Elevators and Lifts Hydraulic passenger elevator, 2500 Ib., 2 floor, 125 FPM 02010 Plumbing Fixtures Water closet, vitreous china, bowl only with flush valve, floor mount Urinal, vitreous china, wall hung Lavatory w/trim, wall hung, PE on CI, 20" x 18" Kitchen sink w/trim, countertop, stainless steel, 44" x 22" triple bowl Service sink w/trim, PE on CI, corner floor, 28" x 28", w/rim guard Water cooler, electric, wall hung, wheelchair type, 7.5 GPH D2020 Domestic Water Distribution Gas fired water heater, commercial, 100< F rise, 600 MBH input, 576 GPH D2040 Rain Water Drainage Roof drain, CI, soil,single hub, 5" diam, 10' high Roof drain, CI, soil,single hub, 5" diam, for each additional foot add D3010 Energy Supply Commercial building heating system, fin tube radiation, forced hot water, 100,000 SF, lmil CF, total 3 floors 5.23 78,481.46 D3030 Air Handling Systems 17.09 256,405.73 Packaged chiller, water cooled, with fan coil unit, schools and colleges, 60,000 SF, 230.00 ton 17.09 256,405.73 D4010 Sprinklers 2.33 34,907.41 Wet pipe sprinkler systems, steel, light hazard, 1 floor, 50,000 SF • 1.34 20,063.03 Wet pipe sprinkler systems, steel, light hazard, each additional floor, 50,000 SF 0.99 14,844.38 D4020 Standpipes 0.36 5,367.29 Wet standpipe risers, class III, steel, black, sch 40, 6" diam pipe, 1 floor 0.23 3,472.37 Wet standpipe risers, class III, steel, black, sch 40, 6" diam pipe, additional floors 0.13 1,894.92 D5010 Electrical Service/Distribution 9.19 137,866.30 Overhead service installation, includes breakers, metering, 20' conduit & wire, 3 phase, 4 wire, 120/208 V, 2000 A 2.44 0.66 0.66 4.87 1.61 0.45 1.55 0.17 0.14 0.95 10.42 10.42 0.48 0.43 0.05 5.23 955,518.74 9,969.40 9,969.40 73,121.77 24,139.13 6,762.30 23,199.30 2,549.85 2,161.19 14,310.00 156,365.63 156,365.63 7,186.72 6,383.63 803.09 78,481.46 Feeder installation 600 V, including RGS conduit and XHHW wire, 2000 A 3.19 Switchgear installation, incl switchboard, panels & circuit breaker, 120/208 V, 3 phase, 2000 A 3.56 53,399.40 D5020 Lighting and Branch Wiring 10.28 154,180.89 Receptacles incl plate, box, conduit, wire, 8 per 1000 SF, .9 W per SF, with transformer 3.30 49,513.20 Wall switches, 2.0 per 1000 SF 0.47 6,992.40 Miscellaneous power, 1.2 watts 0.33 4,972.20 Central air conditioning power, 4 watts 0.60 9,060.60 Motor installation, three phase, 460 V, 15 HP motor size 0.17 2,539.12 Motor feeder systems, three phase, feed to 200 V 5 HP, 230 V 7.5 HP, 460 V 15 HP, 575 V 20 HP 0.07 1,090.37 Fluorescent fixtures recess mounted in ceiling, 1.6 watt per SF, 40 FC, 10 fixtures @32watt per 1000 SF 5.33 80,013.00 D5030 Communications and Security 2.31 34,496.31 Communication and alarm systems, includes outlets, boxes, conduit and wire, sound systems, 100 outlets 0.89 13,286.87 Communication and alarm systems, fire detection, addressable, 100 detectors, includes outlets, boxes, conduit and wire 0.88 13,218.37 36,592.50 47, 874.40 Eustis Street Redevelopment TIF Analysis Replacement Cost Report LHB Project No. 170814 Page 3 of 4 Parcel A, Church Building $3,547,827.02 Fire alarm command center, addressable with voice, excl. wire & conduit Internet wiring, 2 data/voice outlets per 1000 S.F. D5090 Other Electrical Systems Generator sets, w/battery, charger, muffler and transfer switch, diesel engine with fuel tank, 250 kW 0.10 0.44 0.48 0.48 1,439.91 6,551.16 7,169.83 7,169.83 E Equipment & Furnishings 0% 0 0 E1090 Other Equipment 0 0 F Special Construction G Building Sitework 0% 0% 0 0 0 0 SubTotal Contractor Fees (General Conditions,Overhead,Profit) Architectural Fees User Fees 100% 10.00% 0.00% 0.00% $215.02 $21.50 $0.00 $0.00 $3,225,297.29 $322,529.73 $0.00 $0.00 Total Building Cost $236.52 Eustis Street Redevelopment TIF Analysis Replacement Cost Report LHB Project No. 170814 Page 4 of 4 Parcel A, Church Building Eustis Street Redevelopment TIF Analysis Code Deficiency Cost Report Parcel A - 1795 Eustis Street, Lauderdale, MN 55113 - PID 172923330001 Church Building Code Related Cost Items Unit Cost Units Unit Quantity Total Accessibility Items Thresholds Modify exterior thresholds to comply with ADA code $ 350.00 EA 6 $ . 2,100.00 Stages Create code required accessible route to stages $ 1,500.00 EA 2 $ 3,000.00 Stage Door Modify stage door to comply with ADA code $ 1,000.00 EA 1 $ 1,000.00 Door Hardware Install ADA code compliant door hardware $ 250.00 EA 30 $ 7,500.00 Interior Stair Treads Modify interior stair treads to comply with code for proper tread rise $ 0.93 SF 15000 $ 13,950.00 Kitchen Modify kitchen to comply with code $ 0.31 SF 15000 $ 4,650.00 Structural Elements Exiting Flooring Replace damaged carpeting to create a code required unimpeded means for emergency egress $ 3.35 SF 10000 $ 33,500.00 Stairway Handrails Install code required handrails on basement service stairway $ 250.00 EA 2 $ 500.00 Install code required handrails on office stairway $ 250.00 EA 2 $ 500.00 Sidewalks Replace damaged sidewalks to create a code required unimpeded means for emergency egress $ 5.00 SF 5000 $ 25,000.00 Fire Protection Smoke Detectors Install code required smoke detectors $ 0.88 SF 15000 $ 13,200.00 Emergency Lighting Install code compliant emergency lighting $ 175.00 EA 20 $ 3,500.00 Emergency Notification System Install code compliant emergency notification system $ 0.10 SF 15000 $ 1,500.00 Building Sprinkler system Install code required building sprinkler system $ 2.69 SF 15000 $ 40,350.00 Eustis Street Redevelopment TIF Analysis Code Deficiency Cost Report LHB Project No. 170814 Page 1 of 2 Parcel A, Church Building Code Related Cost Items Unit Cost Units Unit Quantity Total Exterior Construction Brick Repair/replace damaged brick and mortar to prevent water intrusion per code $ 11.75 SF 15000 $ 176,250.00 Stucco Repair/replace damaged stucco to prevent water intrusion per code $ 3.00 SF 2000 $ 6,000.00 Wood Panels Replace damaged/rotting wood panels to prevent water intrusion per code $ 2.00 SF 1000 $ 2,000.00 Steel Lintels Protect steel lintels from rusting per code $ 2,500.00 Lump 1 $ 2,500.00 Windows Replace damaged/rotting wood windows to prevent water intrusion per code $ 7.36 SF 15000 $ 110,400.00 Roof Construction Roofing Material Remove damaged roofing material $ 0.50 SF 15000 $ 7,500.00 Install roofing material to prevent water intrusion per code $ 6.30 SF 15000 $ 94,500.00 Mechanical- Electrical Mechanical Install code compliant HVAC system $ 17.09 SF 15000 $ 256,350.00 Total Code Improvements $ 805,750 Eustis Street Redevelopment TIF Analysis Code Deficiency Cost Report LHB Project No. 170814 Page 2 of 2 Parcel A, Church Building Eustis Street Redevelopment TIF Analysis Photos: Parcel A, 1795 Eustis Street, Church Building P1160937.JPG P1160938.JPG P1160940.JPG P1160943.JPG P1160941.JPG P1160944.JPG P1160946.JPG P1160947.JPG Page 1 of 10 P1160939.JPG P1160942.JPG P1160945.JPG P1160948.JPG Eustis Street Redevelopment TIF Analysis Photos: Parcel A, 1795 Eustis Street, Church Building P1160949.JPG P1160952.JPG P1160950.JPG P1160951.JPG P1160953.JPG P1160955.JPG P1160956.JPG P1160958.JPG P1160959.JPG Page 2 of 10 P1160954.JPG P1160957.JPG P1160960.JPG Eustis Street Redevelopment TIF Analysis Photos: Parcel A, 1795 Eustis Street, Church Building P1160961.JPG P1160962.JPG P1160963.JPG P1160964.JPG P1160965.JPG P1160967.JPG P1160968.JPG P1160970.JPG P1160971.JPG Page 3 of 10 P1160966.JPG P1160969.JPG P1160972.JPG Eustis Street Redevelopment TIF Analysis Photos: Parcel A, 1795 Eustis Street, Church Building P1160973.JPG P1160976.JPG P1160974.JPG P1160975.JPG P1160977.JPG P1160978.JPG P1160979.JPG A !JI1 •F tommiiill P1160982.JPG P1160980.JPG P1160983.JPG Page 4 of 10 P1160981.JPG P1160984.JPG Eustis Street Redevelopment TIF Analysis Photos: Parcel A, 1795 Eustis Street, Church Building P1160985.JPG P1160988.JPG P1160991.JPG P1160986.JPG P1160989.JPG P1160992.JPG P1160995.JPG P1160996.JPG Page 5 of 10 P1160987.JPG P1160990.JPG P1160994.JPG P1160997.JPG Eustis Street Redevelopment TIF Analysis Photos: Parcel A, 1795 Eustis Street, Church Building P1160998.JPG L P1160999.JPG a P1170002.JPG P1170003.JPG P1170005.JPG P1170007.JPG P1170009.JPG P1170010.JPG Page 6 of 10 P1170001.JPG P1170004.JPG P1170008.JPG P1170011.JPG Eustis Street Redevelopment TIF Analysis Photos: Parcel A, 1795 Eustis Street, Church Building P1170012.JPG I PlkA P1170015.JPG P1170013.JPG P1170016.JPG P1170018.JPG P1170019.JPG P1170014.JPG P1170017.JPG P1170020.JPG P1170021.JPG P1170022.JPG Page 7 of 10 P1170023.JPG Eustis Street Redevelopment TIF Analysis Photos: Parcel A, 1795 Eustis Street, Church Building P1170024.JPG P1170025.JPG P1170026.JPG P1170027.JPG P1170030.JPG P1170033.JPG P1170028.JPG P1170031.JPG P1170029.JPG P1170032.JPG P1170034.JPG P1170035.JPG Page 8 of 10 Eustis Street Redevelopment TIF Analysis Photos: Parcel A, 1795 Eustis Street, Church Building P1170036.JPG P1170039.JPG P1170037.JPG P1170040.JPG P1170043.JPG P1170046.JPG P1170044.JPG P1170048.JPG Page 9of10 P1170038.JPG P1170042.JPG P1170045.JPG P1170049.JPG Eustis Street Redevelopment TIF Analysis Photos: Parcel A, 1795 Eustis Street, Church Building pow- P1170050.JPG P1170051.JPG P1170053.JPG P1170056.JPG P1170059.JPG P1170054.JPG P1170052.JPG P1170055.JPG P1170057.JPG Page 10 of 10 P1170058.JPG Appendix G Findings Including But/For Qualifications The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan (TIF Plan) for Tax Increment Financing District No. 1-2 (District), as required pursuant to Minnesota Statutes, Section 469.175, Subdivision 3 are as follows: 1. Finding that Tax Increment Financing District No. 1-2 is a redevelopment district as defined in M.S., Section 469.174, Subd. 10. The District consists of one parcel with plans to redevelop the area for residential purposes. At least 70 percent of the area of the parcels in the District are occupied by buildings, streets, utilities, paved or gravel parking lots or other similar structures and more than 50 percent of the buildings in the District, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance. (See Appendix F of the TIF Plan.) 2. Finding that the proposed development, in the opinion of the City Council, would not reasonably be expected to occur solely through private investment within the tretisonablyforeseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the District permitted by the. TIF Plan. The proposed development, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeablefisture: This finding is supported by the fact that the redevelopment proposed in the TIF Plan meets the City's objectives for redevelopment. Due to the high cost of land acquisition and redevelopment on the parcel currently occupied by a substandard building and associated environmental remediation issues, and the cost of financing the proposed improvements, this project is feasible only through assistance, in part, from tax increment financing. The City has been approached by several multi -family housing developers who have all stated that tax increment assistance would be needed to redevelop the site. The increased market value of the site that could reasonably be expected to occur without the use of tax incremnentfinancingwould be less than the increase in market value estimated to resultfrom the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the District permitted by the TIF Plan: This finding is justified on the grounds that the cost of acquiring a site with a blighted building that has to be demolished for reuse and costs of remediating environmental issues within the building add to the total redevelopment cost. Historically, these costs in this area have made redevelopment infeasible without tax increment assistance. This site has been marketed for at least two years without success and the only interest has been from similar uses (church/tax exempt uses) that have found the cost to even reuse the building and bring up to code are cost prohibitive. The City reasonably determines that no other redevelopment of similar scope is anticipated on this site without substantially similar assistance being provided to the development., Therefore, the City concludes as follows: a. The City's estimate of the amount by which the market value of the entire District will increase without the use of tax increment financing is $0. b. If the proposed development occurs, the total increase in market value will be $18,764,600. Appendix G-1 c. The present value of tax increments from the District for the maximum duration of the district permitted by the TIF Plan is estimated to be $3,978,066. d. Even if some development other than the proposed development were to occur, the Council finds that no alternative would occur that would produce a market value increase greater than $14,786,534 (the amount in clause b less the amount in clause c) without tax increment assistance. 3. Finding that the TIF Plan for the District conforms to the general plan for the development or redevelopment of the municipality as a whole. The City Council, serving as the City's planning agency within the meaning of M.S., Section 462.354, Subd.1, reviewed the TIF Plan and found that the TIF Plan conforms to the general development plan of the City. 4. Finding that the TIF Plan for the District will afford maximum opportunity, consistent with the sound needs of the City as a whole, for. the development or redevelopment of Development District No. 1 by private enterprise. The project to be assisted by the District will result in increased employment in the City and the State of Minnesota, the renovation of substandard properties, increased tax base of the State and add a high quality development to the City. Through the implementation of the TIF Plan, the City will increase the availability of safe and decent life -cycle housing in the City. But -For Analysis Current Market Value New Market Value - Estimate Difference Present Value of Tax Increment Difference Value Likely to Occur Without TIF is Less Than: 735,400 19,500,000 18,764,600 3,978,066 14,786,534 14,786,534 Appendix G-2 LAUDERDALE COUNCIL ACTION FORM Action Requested Consent Public Hearing Discussion X Action X Resolution Work Session Meeting Date January 23, 2018 ITEM NUMBER Phase I & Demo Survey STAFF INITIAL APPROVED BY ADMINISTRATOR DESCRIPTION OF ISSUE AND PAST COUNCIL ACTION: After the purchase agreement is signed by all parties, the City will have the right to begin inspecting the property. The Council is being asked to approve the hiring of a consultant to complete a Phase I Environmental Site Assessment (Phase I) and Pre -Demolition Asbestos and Regulated Building Materials Survey (demo survey). The Phase I will identify potential or existing environmental contamination liabilities. As the City has little by way of records for the site, this will be important in determining whether additional or more invasive testing of the building or soil is required. As the building is expected to be razed, the demo survey will identify potential contaminants such as asbestos that will need to be dealt with specially when the building is demolished. The report will also provide guidance on the cost to tear down the structure for purposes of planning and preparing demolition grant applications this spring. Due to the tight timelines, staff gave the perspective consultants until Monday to submit their proposals. Those received in advance are attached. OPTIONS: STAFF RECOMMENDATION: Motion to hire to complete a Phase I Environmental Site Assess- ment and Pre -Demolition Asbestos and Regulated Building Materials Survey at 1795 Eustis Street. COUNCIL ACTION: THE �AVIN EL GROUP ENVIRONMENTAL ARCHITECTURAL ENGINEERING CONSULTANTS January 19, 2018 Ms. Heather Butkowski — City Administrator City of Lauderdale 1891 Walnut Street Lauderdale, MN 55113 RE: PROPOSAL P2018-0108 PRE -DEMOLITION ASBESTOS & REGULATED BUILDING MATERIALS SURVEY PHASE I ENVIRONMENTAL SITE ASSESSMENT F. TWIN CIzy CHINESE CHRISTIAN CHURCH SI I'L 1795 EUSTIS STREET LAUDERDALE, MN Dear Ms. Butkowski: The Javelin Group, Inc. QAVELIN) appreciates the opportunity to submit this proposal to conduct a pre -demolition asbestos/regulated building materials survey and a Phase I Environmental Site Assessment for the site referenced above. SCOPE OF WORK I. PRE -DEMOLITION ASBESTOS AND REGULATED MATERIALS BUILDING SURVEY: The pre -demolition asbestos/regulated materials building survey will be conducted in accordance with Minnesota Department of Health (MDH), Minnesota Pollution Control Agency (MPCA), and applicable federal regulations. Javelin will utilize the asbestos laboratory data from the previous asbestos survey report to minimize the costs to conduct this pre -demolition survey. The survey will be conducted by an MDH Certified Asbestos Inspector that will include the following tasks: PRE -DEMOLITION ASBESTOS SURVEY: ❑ Javelin will verify the results of the previous survey report, confirm quantities of asbestos -containing materials, and collect bulk samples of suspect asbestos -containing materials not previously tested. Javelin will also conduct destructive testing (punching holes in walls, etc. to verify the presence of mechanical pipe chases, etc. to inspect for the presence of asbestos -containing materials. Roofing materials will also be inspected and tested for the presence of asbestos -containing roofing materials. ❑ Visual inspection of accessible areas to identify suspect asbestos -containing materials (ACMs), determination of friability, and estimation of quantities of materials, and assessment of the condition of ACMs; ❑ Collection of bulk samples of suspect ACMs from representative areas and homogenous material types in accordance with MDH, MPCA, and EPA regulations; THE JAVELIN GROUP, INC. 10125 CROSSTOWN CIRCLE — SUITE 107 — EDEN PRAIRIE, MN 55344 TEL: 952 380-3668 FAX: 952 380-3669 THE al JAVELIN GROUP "Real Estate Due Diligence" u Submission of bulk samples to a NVLAP accredited laboratory for analysis of asbestos content by polarized light microscopy using EPA Method 600/R -93/116.s REGULATED WASTE INVENTORY: Inventory of hazardous/regulated materials including, but not limited to: ❑ Mercury -containing devices including, but not limited to fluorescent bulbs, thermostats, and switches; u Polychlorinated -biphenyls (PCB) containing devices including, but not limited to fluorescent lights and ballasts, hydraulic door closers and transformers; ❑ Refrigerants (CFCs — chlorofluorocarbons) - containing equipment including, but not limited to, air conditioners, refrigerators, freezers, and water coolers; ❑ Household hazardous waste; and ❑ Other items requiring special handling and disposal prior to demolition PRE -DEMOLITION ASBESTOS/REGULATED MATERIALS REPORT: ❑ Preparation of a pre -demolition asbestos and regulated materials building survey report to include sample analysis results, sample locations (figure for each floor), estimated quantities of friable and non -friable ACMs, and requirements for removal of ACMs and other hazardous materials/special wastes prior to proposed activities. ❑ Preparation of a remediation cost estimate for asbestos abatement and removal and disposal of hazardous/regulated building materials and costs for oversight and air monitoring services provided during contractor abatement activities. II. PHASE I ENVIRONMENTAL SITE ASSESSMENT (ESA) The Phase I ESA will be performed in accordance with the Environmental Protection Agency (EPA) All Appropriate Inquiries (AAI) Final Rule and ASTM E 1527-13 "STANDARD PRACTICE FOR ENVIRONMENTAL SITE ASSESSMENTS: PHASE I ENVIRONMENTAL SITE ASSESSMENT PROCESS", which will include the following tasks: ❑ Review of federal, state, and local regulatory databases to help identify rrcognked environmental conditions associated with the subject property. ❑ Review of historic documents including historic aerial photographs, city directories, historic maps, and building records to identify prior uses of the subject property. ❑ Site reconnaissance to visually and physically observe the subject property and any improvements for indications of rrcognired environmental conditions. ❑ Interviews with owners, occupants, and local government officials regarding current and historic uses of the subject property and indications of r-ecognired environmental conditions. ❑ Preparation of a Phase I Environmental Site Assessment report documenting the findings and presenting opinions, conclusions, and recommendations regarding known or suspect recognized environmental conditions. AVELIN GROUP REAL ESTATE DUE DILIGENCE CONSULTANTS THE n1 JAVELIN GROUP "Real Estate Due Diligence" BUDGET/COST PROPOSAL JAVELIN proposes to invoice project expenses on a lump sum basis, in accordance with the breakdown of costs below: COST SUMMARY Pre -Demolition Asbestos and Hazardous/Regulated Materials Survey - NIDH Licensed Asbestos Inspector - Asbestos Bulk Samples Laboratory Testing - Sampling Supplies/Field Equipment/Mileage/Travel - Data Analysis & Report Preparation & Remediation Cost Estimate Phase I Environmental Site Assessment - Preparation of Phase I ESA Subtotal $2,000.00 $1,500.00 TOTAL $3,500.00 SCHEDUT.F, JAVELIN will proceed with the scope of work immediately upon site access notification. The reports will be completed within 2-3 weeks of authorization. We appreciate the opportunity to present this proposal. If you have any questions, please do not hesitate to contact me at (952) 380-3668. SINCERELY, THE JAVELIN GROUP, INC. Cr - JOHN E. FINDI,FY, M.S. PRINCIPAL ENVIRONMENTAL MANAGER THE AVELIN GROUP REAL ESTATE DUE DILIGRNGE CONSULTANTS THE g JAVELIN GROUP Real Estate Due Diligence" J J J J J J J J J J J J J J J AUTHORIZATION / AGREEMENT PERMS OF PAYMENT FOR SERVICES ARE NET 10 DAYS WITH IN 1'hREST ADDED TO UNPAID BALANCES AT A RAI'F. OF 1.5% PER MONTH IN ACCORDANCE WITH THE AI'ACHED AGREEMENT OF GENERAL CONDITIONS. BY EXECUTING THIS DOCUMENT, THE UNDERSIGNED ACKNOWLEDGES THE PROVISIONS OF THIS PROPOSAL AND THE AGREEMENT OF GENERAL CONDITIONS, WHICH ARE A PART OF THIS PROPOSAL. PROPOSAL. P2018-0108 Accepted By: (signature) Company: Date: THE • c OUP REAL ESTATE DUE DILIGENCE cON$ULt. N'TS THE JAVELIN GROUP, INC.. AGREEMENT OF GENERAL CONDITIONS Section 1. SERVICES AND COMPENSATION 1.I The Javelin Group, Inc., (JAVELIN), a Minnesota corporation, shall provide CLIENT the services described in the JAVELIN Proposal or Authorization Agreement attached hereto (the "services") in accordance with the terms thereof and hereof. In the event that these General Conditions are inconsistent with the terms of the attached Proposal or Authorization Agreement, the terms of such Proposal or Authorization Agreement shall govern. CLIENT shall pay for the Services as agreed, and a statement of probable cost made to CLIENT shall not be binding on JAVELIN unless stated as a "not -to -exceed cost". JAVELIN shall provide additional services as requested by CLIENT or as required due to a material increase in the Scope of the Services, and CLIENT will pay for those additional services at the rate shown on the attached Proposal, Authorization Agreement or Schedule of Charges. Section 2. GENERAL RESPONSIBILITIES 2.1 JAVELIN will test samples submitted by CLIENT, or will obtain and test samples as agreed upon by the parties. CLIENT acknowledges that JAVELIN will not sample each increment of the area or object to be tested. CLIENT acknowledges that the results of such testing will indicate actual conditions only of specific increments sampled from which JAVELIN can make certain inferences, but that JAVELIN cannot and does not guarantee that its procedures will produce results representative of the entire area or object from which the incremental sample was taken. 2.2 JAVELIN shall not be responsible for the performance of any activity or obligation other than the Services. The performance of the Services by JAVELIN shall not be construed to relieve any third party of their responsibilities. 2.3 Insofar as jobsite safety is concemed, JAVELIN is responsible solely for his own and his employees' activities on the jobsite, but shall not be construed to relieve CLIENT, Owner or any third party from their responsibilities for maintaining a safe jobsite. Neither professional activities of JAVELIN, nor the presence of JAVELIN or his employees and subcontractors, shall be construed to imply JAVELIN has any responsibility for methods of work performance, supervision, sequencing of construction, or safety in, on or about the jobsite. 2.4 JAVELIN is not responsible for the transportation, handling, storage or disposal of hazardous substances or suspected hazardous substances. It is CLIENT'S responsibility to select lawful disposal sites and arrange for the proper transportation to such sites. CLIENT is advised that, in all cases, prudence and good judgment should be applied in selecting and arranging for lawful disposal of hazardous or suspected hazardous substances. 2.5 CLIENT shall provide JAVELIN all information known to CLIENT regarding existing and proposed conditions of the site relevant to the Services. CLIENT shall immediately notify JAVELIN if any new information or data of which CLIENT becomes aware that materially differs from information previously provided to JAVELIN. 2.6 The services performed by JAVELIN are performed as an independent contractor and not as an employee, agent, partner, or joint venture of CLIENT. Section 3. RIGHT OF ENTRY 3.1 CLIENT shall provide JAVELIN right to enter property owned by CLIENT and/or others in order for JAVELIN to fulfill the Services indicated hereunder. CLIENT agrees that any part or parcel of property to which JAVELIN is not provided access will not be subject to claim by CLIENT against JAVELIN under this agreement. CLIENT further understands and agrees that JAVELIN shall not be responsible to pay any costs incurred by CLIENT to correct any damage to the site or sampled materials caused by JAVELIN's activities. Section 4. SUBSURFACE STRUCTURES AND UTILITIES 4.1 In the performance of the Services indicated hereunder, JAVELIN will take reasonable precautions to avoid damaging buried structures and utilities. CLIENT assumes all liability for claims allegedly arising out of damage to buried structures and utilities that were not called to the attention of JAVELIN, which were not properly located on plans furnished to JAVELIN or which were not properly located by locating companies called to the site by or on behalf of CLIENT to identify such structures and utilities. Section 5. REPORTS, DRAWINGS AND DOCUMENTS 5.1 CLIENT agrees that all original reports, drawings and documents produced by JAVELIN in accordance with this agreement, except documents, which are required to be tiled with public agencies, shall remain the property of JAVELIN. CLIENT agrees to be liable and responsible for the use of unsigned reports, drawings or other documents not signed by JAVELIN and waives liability against JAVELIN for their use. Further, CLIENT agrees to waive any claim against JAVELIN and to indemnify, defend and hold harmless JAVELIN from any and all claims arising out of any use, not authorized in writing by JAVELIN, of these reports, drawings and documents by third parties not related to this agreement. 5.2 If CLIENT does not pay for the Services as set forth in this agreement, CLIENT shall return to JAVELIN, upon demand, all reports, drawings and documents completed by JAVELIN. Further, such reports, drawings and documents shall not be used by CLIENT for any purpose. TI IE JAVELIN GROUP 5.3 JAVELIN shall retain all material documents relating to the Services for five years following submission of the report to the CLIENT. Section 6. SAMPLES 6.1 Samples remaining after the completion of the Services will be discarded by JAVELIN at JAVELIN'S expense unless CLIENT requests in writing within 30 days of the report submission to store or ship the samples to CLIENT. Costs associated with storage or shipment of samples will be charged to CLIENT at cost plus 15%. Section 7. PAYMENT, INTEREST, AND BREACH 7.1 Invoices for the Services shall be issued monthly or at the completion of Services and shall be paid by CLIENT within 10 days of receipt. Invoices not paid within 30 days are subject to interest from the 31s` day at a rate of 1.5% per month. 7.2 If CLIENT does not pay the invoice within 60 days, then JAVELIN may exercise the option to declare this agreement to be in default and terminate all of its duties hereunder without liability to CLIENT or others. CLIENT shall pay for services completed under this agreement and reasonable termination expenses. 7.3 If JAVELIN prevails in a lawsuit against CLIENT to collect fees for services rendered, then CLIENT shall pay all collection expenses, including reasonable attorneys fees. Section 8. STANDARD OF CARE 8.1 Services performed by JAVELIN under this agreement will be conducted in a manner consistent with that level of care and skill ordinarily exercised by members of the profession in the same locality under similar conditions. No other representations express or implied, and no warranty or guarantee is included or intended in the agreement, or in any report, drawing, document, opinion or otherwise. Section 9. DISPUTES 9.1 If JAVELIN prevails in a lawsuit brought by CLIENT, in whole or in part, or is the lawsuit is dismissed, then CLIENT will pay JAVELIN its costs of defense, including, without limitation, reasonable attorneys' fees. 9.2 The terms of this agreement shall be governed by the substantive laws, and not the laws of conflicts, of the State of Minnesota. Section 10. LIEN RIGHTS 10.1 JAVELIN hereby gives notice that it retains the right to file a mechanic's and materialman's or other applicable statutory or common law lien against the Client's property in the event of non-payment of invoices. The lien will be prepared and filed in accordance with pertinent laws of the state in which the Site is located. 10.2 Any person or company supplying labor or materials for this improvement to your property may file a Lien against your property if that person or company is not paid for the contributions. 10.3 Under Minnesota law, you have the right to pay persons who supplied labor and materials for this improvement directly and deduct this amount from our contract price, or withhold the amount due them from us until 120 days after completion of the improvement unless we give you a Lien Waiver signed by persons who supplied any labor or materials for the improvement and who gave you timely notice. Section 11. INDEMNIFICATION 11.1 JAVELIN agrees to defend, indemnify and hold. harmless CLIENT from all claims and reasonable expenses resulting there from, including court costs and reasonable attorneys fees, (arising solely from services performed by JAVELIN). If and to the extent that a subcontractor defends and indemnifies CLIENT, JAVELIN shall have no obligation to provide such indemnification. CLIENT agrees to give JAVELIN prompt notice of any claim or action and shall cooperate with JAVELIN, or its subcontractor, in the defense of such claim. 11.2 CLIENT agrees to defend, indemnify and hold harmless JAVELIN and its subcontractors from all claims and reasonable expenses resulting therefrom, including court costs and reasonable attorneys fees, arising from: (1) environmental conditions whose existence or source was not previously disclosed by CLIENT; (2) the condition of the CLIENT'S property; (3) execution of hazardous waste manifests as agents on behalf of the CLIENT; or (4) otherwise arising out of the CLIENT'S acts, omissions or breach of warranty or representation hereunder. JAVELIN agrees to give CLIENT prompt notice of any claim or action and shall cooperate with CLIENT in the defense of such claim. Section 12. LIMITATION OF LIABILITY 12.1 CLIENT agrees that, to the fullest extent permitted by law, JAVELIN'S total liability to CLIENT for any and all injuries, claims, losses, expenses or damages whatsoever arising out of or in any way related to this Agreement from any cause or causes, including but not limited to JAVELIN'S negligence, errors, omissions, strict liability, breach of contract or breach of warranty shall not exceed JAVELIN'S charges for the Services. JAVELIN shall not be liable to CLIENT for any special, indirect or consequential damages whatsoever, whether caused or alleged to be caused by JAVELIN'S negligence, errors, omissions, strict liability, breach of contract or warranty, or performance of Services under this agreement. Section 12. ENTIRE AGREEMENT 12.1 This agreement is the entire agreement between JAVELIN and CLIENT and it supersedes all prior written or oral agreements with respect to Services hereof, including any additional terms and conditions contained in any purchase order, work order, or similar document forwarded to JAVELIN by CLIENT. No amendments or assignment of this Agreement shall be effective unless agreed to in writing by both parties. TI 1E _...._...__. JAVELIN GROUP BRAUN INTERTEC The Science You Build On. Braun Intertec Corporation 11001 Hampshire Avenue S Minneapolis, MN 55438 January 11, 2018 Proposal QTB071584 Ms. Heather Butkowski City of Lauderdale 1891 Walnut Street Lauderdale, MN 55113 Re: Proposal to Conduct a Phase I Environmental Site Assessment Eustis Street 1795 Eustis Street Lauderdale, Minnesota Dear Ms. Butkowski: Phone: 952.995.2000 Fax: 952.995.2020 Web: braunintertec.com Braun Intertec Corporation is pleased to present this proposal to conduct a phase 1 environmental site assessment'(ESA) of the referenced site. The objective of a Phase 1 ESA is to evaluate the site for indications of recognized environmental conditions and to assist in satisfying All Appropriate Inquiries (AAI) criteria and requirements. The Phase I ESA will be conducted in general conformance with the scope and limitations of ASTM International Practice E 1527-13 (ASTM Practice E 1527-13) and 40 CFR Part 312. Scope of Services Site History Review The Phase 1 ESA will summarize reasonably ascertainable information pertaining to former and current land -use activities at the site. Our summary will include a review of aerial photographs, fire insurance atlases, city directories, property tax files, building records, topographic maps, and/or other historical documents to satisfy the historical -use requirements of the ASTM Practice E 1527-13 and 40 CFR Part 312. Regulatory Information Review We will request that a national regulatory information vendor, such as Environmental Data Resources, Inc., conduct a limited file evaluation of the site. If readily available and practically reviewable, the file evaluation will include, at a minimum, a review of the following databases within the corresponding approximate minimum search distance indicated in the ASTM Practice E 1527-13 and 40 CFR Part 312: • Federal National Priorities List (NPL) • Federal Comprehensive Environmental Response, Compensation, and Liability Information System (CERCLIS) • Federal Institutional and Engineering Controls • Federal Resource Conservation and Recovery Act (RCRA) Transport, Storage and Disposal (TSD) facilities ■ Federal RCRA TSD facilities that have received RCRA corrective action activities ■ Federal RCRA generators AA/ EOE City of Lauderdale Proposal QTB071584 January 11,2018 Page 2 • Federal Emergency Response Notification (ERNS) sites • State NPL and CERCLIS equivalents • State landfill and/or solid waste disposal sites ■ State Voluntary cleanup programs ■ State leaking underground and aboveground storage tank (LUST/LAST) sites ■ State registered underground and aboveground storage tank (UST/AST) sites • State Brownfield programs • State Institutional and Engineering Controls • State spills list We will review and summarize this information, and comment on known and potential environmental hazards that may impact the site. The scope of work does not include a detailed review of file information of identified facilities listed on the regulatory databases. However, if in our opinion a file review is warranted to evaluate the existence of a recognized environmental condition, historical recognized environmental condition, controlled recognized environmental condition, or a de minimis condition, we will contact you to discuss expanding the assessment to include a file review and the associated costs. Site Reconnaissance and Interviews The Phase 1 ESA will include a reconnaissance of the site. During the reconnaissance we will note, if observed, the type of vegetation, exposed soils, open excavations or depressions, and site topography. Visible indications of underground and aboveground storage tanks, dumping, spills of petroleum and chemicals, and other obvious potential sources of contamination will be noted. In addition, we will conduct interviews with site representatives and governmental officials regarding past and current land -use activities. Results and Reporting A draft Phase! ESA report will be sent to you for review and comment. The Phase 1 ESA report will remain in draft status until we are notified by you to proceed with issuance of the final Phase I ESA report. If we encounter indications of existing or potential sources of contamination during our assessment, we will notify you to discuss how the assessment may proceed. You may wish to discontinue the Phase 1 ESA or you may consider expanding the assessment to further evaluate the contamination sources that are identified. If contamination at the site is confirmed, the property owner may be required to notify proper governmental authorities. User -Provided Information As part of Phase I ESA, the "User" should provide available information to Braun Intertec as the Environmental Professional to help identify the possibility of recognized environmental conditions in connection with the Site. A "User" is the party seeking to use ASTM Practice E 1527-13 to complete an environmental site assessment and may include, without limitation, a potential purchaser, tenant or owner of the property, a lender, ora property manager. The attached User questionnaire should be completed in its entirety by the User(s) and returned with the signed authorization. If multiple Users are requesting reliance on the Phase I ESA, please provide us with a questionnaire completed by each of the appropriate entities. BRAUN INTERTEC City of Lauderdale Proposal QTB071584 January 11,2018 Page 3 Assessment Limitations Upon completion of the Phase I ESA, Braun Intertec does not guarantee qualification for Landowner Liability Protections (LLP). Our proposed scope of work is consistent with "good commercial and customary practices" (as defined by ASTM Practice E 1527-13) conducted in an effort to evaluate recognized environmental conditions at a site in this area. The assessment will not include vapor encroachment screening as defined in ASTM Practice E2600-15, Standard Guide for Vapor Encroachment Screening on Property. Involved in Real Estate Transactions. ASTM Practice E2600-15 is not a requirement or component of AAI, and its results are not determinative of whether hazardous substances from a release are or may be present at the property for the sake of AAI or ASTM E1527-13. However, vapors present or likely present from hazardous substances or petroleum products will be considered no differently than hazardous substances or petroleum products present or likely present as a result of a release to the environment. Therefore, while a vapor encroachment screening per the ASTM Practice E2600-15 standard will not be conducted as part of this proposal, the potential for impacts to the property from vapor migration that is a result of a release of hazardous substances and/or petroleum products to the environment will be considered when assessing for the presence of a recognized environmental condition as defined by ASTM E1527-13. Cost The lump -sum cost for the tasks described in this proposal is as follows. Service Description Phase 1 Environmental Site Assessment Schedule Lump Sum Cost $2,250 We anticipate the draft Phase I ESA report will be completed within three weeks from the date of your written authorization. The Phase I ESA report will remain in draft status until we are notified by you to proceed with issuance of the final Phase I ESA report. General Remarks Braun Intertec appreciates the opportunity to present this proposal to you. It is being sent in an electronic version only. A hard copy of the proposal will be supplied upon request. Please return a signed copy of the proposal, the completed User Questionnaire, and the completed Client Information Request Form, in their entirety. The proposed fee is based on the scope of services described and the assumption that our services will be authorized within 30 days and that others will not delay us beyond our proposed schedule. BRAUN INTERTEC City of Lauderdale Proposal QTB071584 January 11,2018 Page 4 We include the Braun Intertec General Conditions, which provide additional terms and are a part of our agreement, We appreciate the opportunity to provide professional services for you on this project. If you have questions regarding the contents of this proposal, please call Derek Schilling at 952.995.2674, Sincerely, BRAUN INTERTEC CORPORATION Derek M. Schilling, PG Associate Principal - Senior Scientist StephJansen, Princip. - Principa entist Attachments: General Conditions — Phase I Assessments (1/1/18) Client Information Request Form ASTM Practice E 1527-13 User questionnaire The proposal is accepted, and you are authorized to proceed. Authorizer's Firm Authorizer's Signature Authorizer's Name (please print or type) Authorizer's Title Date BRAUN INTERTEC General Conditions Phase I Environmental Site Assessments and Related Services Section 1: Agreement 1.1 Our agreement with you consists of these General Conditions and the accompanying written proposal or authorization ("Agreement"). This Agreement is the entire agreement between you and us. It supersedes prior agreements. It may be modified only in a writing signed by us, making specific reference to the provision modified. 1.2 The words "you," "we," "us," and "our" include officers, employees, and subcontractors. 1.3 In the event you use a purchase order or other documentation to authorize our scope of work ("Services"), any conflicting or additional terms are not part of this Agreement. Directing us to start work prior to execution of this Agreement constitutes your acceptance. If, however, mutually acceptable terms cannot be established, we have the right to terminate this Agreement without liability to you or others, and you will compensate us for fees earned and expenses incurred up to the time of termination. Section 2: Our Responsibilities 2.1 We will provide Services specifically described in this Agreement. You agree that we are not responsible for services that are not expressly included in this Agreement. Unless otherwise agreed in writing, our findings will be written and you may not rely on oral statements. 2.2 In performing our professional services, we will use that degree of care and skill ordinarily exercised under similar circumstances by reputable members of our profession practicing in the same locality. If you direct us to deviate from our recommended procedures, you agree to hold us harmless from claims, damages, and expenses arising out of your direction. If during the one year period following completion of Services it is determined that the above standards have not been met and you have promptly notified us in writing of such failure, we will perform, at our cost, such corrective services as may be necessary, within the original scope in this Agreement, to remedy such deficiency. Remedies set forth in this section constitute your sole and exclusive recourse with respect to the performance or quality of Services. 2.3 We will reference our field observations and sampling to available reference points, but we will not survey, set, or check the accuracy of those points unless we accept that duty in writing. Locations of field observations or sampling described in our report or shown on our sketches are based on information provided by others or estimates made by our personnel. You agree that such dimensions, depths, or elevations are approximations unless specifically stated otherwise in the report. You accept the inherent risk that samples or observations may not be representative of things not sampled or seen and further that site conditions may vary over distance or change over time. 2.4 You will provide, at no cost to us, appropriate site safety measures as to work areas to be observed or inspected by us. Our employees are authorized by you to refuse to work under conditions that may be unsafe. 2.5 Unless a fixed fee is indicated, our price is an estimate of our project costs and expenses based on information available to us and our experience and knowledge. They may not reflect current market conditions. Such estimates are an exercise of our professional judgment and are not guaranteed or warranted. You should allow a contingency in addition to estimated costs. Section 3: Your Responsibilities 3.1 You will provide access to the site. You agree to provide us with all plans, changes in plans, and new information as to site conditions until we have completed Services. 3.2 You agree to provide us with information in. your possession or control relating to contamination at the work site. 3.3 Neither this Agreement nor the providing of Services will operate to make us an owner, operator, generator, transporter, treater, storer, or a disposal facility within the meaning of the Resource Conservation Recovery Act, as amended, or within the meaning of any other law governing the handling, treatment, storage, or disposal of hazardous substances. You agree to hold us harmless, defend, and indemnify us from any damages, claims, damages, penalties or losses resulting from the storage, removal, hauling or disposal of such substances. 3.4 You agree to make all disclosures required by law. In the event you do not own the project site, you acknowledge that it is your duty to inform the owner of the discovery or release of contaminants at the site. You agree to hold us harmless, defend, and indemnify us from claims, damages, penalties, or losses and expenses, including attorney fees, related to failures to make disclosures, disclosures made by us that are required by law, and from claims related to the informing or failure to inform the site owner of the discovery of contaminants. Section 4: Reports and Records 4.1 Unless you request otherwise, we will provide our report in an electronic format. 4.2 Our reports, notes, calculations, and other documents and our computer software and data are instruments of our service to you, and they remain our property. We hereby grant you a license to use the reports and related information we provide only for the related project and for the purposes disclosed to us. You may not transfer our reports to others or use them for a purpose for which they were not prepared without our written approval. You agree to indemnify, defend, and hold us harmless from claims, damages, losses, and expenses, including attorney fees, arising out of such a transfer or use. BRAUN INTERTEC 4.3 If you do not pay for Services in full as agreed, we may retain work not yet delivered to you and you agree to return to us all of our work that is in your possession or under your control. 4.4 Electronic data, reports, photographs, samples, and other materials provided by you or others may be discarded or returned to you, at our discretion, unless within 15 days of the report date you give us written direction to store or transfer the materials at your expense. Section 5: Compensation 5.1 You will pay for Services as stated in this Agreement. If such payment references our Schedule of Charges, the invoicing will be based upon the most current schedule. An estimated amount is not a firm figure. You agree to pay all sales taxes and other taxes based on your payment of our compensation. Our performance is subject to credit approval and payment of any specified retainer. 5.2 You will notify us of billing disputes within 15 days. You will pay undisputed portions of invoices upon receipt. You agree to pay interest on unpaid balances beginning 30 days after invoice dates at the rate of 1.5% per month, or at the maximum rate allowed by law. 5.3 If you direct us to invoice a third party, we may do so, but you agree to be responsible for our compensation unless the third party is creditworthy (in our sole opinion) and provides written acceptance of all terms of this Agreement. 5.4 Your obligation to pay for Services under this Agreement is not contingent on your ability to obtain financing, governmental or regulatory agency approval, permits, final adjudication of any lawsuit, your successful completion of any project, receipt of payment from a third party, or any other event. No retainage will be withheld. 5.5 If you do not pay us in accordance with this Agreement, you agree to reimburse al costs and expenses for collection of the moneys invoiced, including but not limited to attorney fees and staff time. 5.6 You agree to compensate us in accordance with our Schedule of Charges if we are asked or required to respond to legal process arising out of a proceeding related to the project and as to which we are not a party. 5.7 If we are delayed by factors beyond our control, or if project conditions or the scope or amount of work changes, or if changed labor conditions result in increased costs, decreased efficiency, or delays, or if the standards or methods change, we will give you timely notice, the schedule will be extended for each day of delay, and we will be compensated for costs and expenses incurred in accordance with our Schedule of Charges. GC -ESA Page 1 of 2 5.8 If you fail to pay us in accordance with this Agreement, we may consider the default a total breach of this Agreement and, at our option, terminate our duties without liability to you or to others, and you will compensate us for fees earned and expenses incurred up to the time of termination. 5.9 In consideration of our providing insurance to cover claims made by you, you hereby waive any right to offset fees otherwise due us. Section 6: Disputes, Damage, and Risk Allocation 6.1 Each of us will exercise good faith efforts to resolve disputes without litigation. Such efforts will include, but not be limited to, a meeting(s) attended by each party's representative(s) empowered to resolve the dispute. Before either of us commences an,action against the other, disputes (except collections) will be submitted to mediation. 6.2 Notwithstanding anything to the contrary in this Agreement, neither party hereto shall be responsible or held liable to the other for punitive, indirect, incidental, or consequential damages, or liability for loss of use, loss of business opportunity, loss of profit or revenue, loss of product or output, or business interruption. 6.3 You and we agree that any action in relation to an alleged breach of our standard of care or this Agreement shall be commenced within one year of the date of the breach or of the date of substantial completion of Services, whichever is earlier, without regard to the date the breach is discovered. Any action not brought within that one year time period shall be barred, without regard to any other limitations period set forth by law or statute. We will not be liable unless you have notified us within 30 days of the date of such breach and unless you have given us an opportunity to investigate and to recommend ways of mitigating damages. You agree not to make a claim against us unless you have provided us at least 30 days prior to the institution of any legal proceeding against us with a written certificate executed by an appropriately licensed professional specifying and certifying each and every act or omission that you contend constitutes a violation of the standard of care governing our professional services. Should you fail to meet the conditions above, you agree to fully release us from any liability for such allegation. 6.4 For you to obtain the benefit of a fee which includes a reasonable allowance for risks, you agree that our aggregate liability for all claims will not exceed the fee paid for Services or $50,000, whichever is greater. If you are unwilling to accept this allocation of risk, we will increase our aggregate liability to $100,000 provided that, within 10 days of the date of this Agreement, you provide payment in an amount that will increase our fees by 10%, but not less than $500, to compensate us for the greater risk undertaken. This increased fee is not the purchase of insurance. 6.5 You agree to indemnify us from all liability to others in excess of the risk allocation stated herein and to insure this obligation. In addition, all indemnities and limitations of liability set forth in this Agreement apply however the same may arise, whether in contract, tort, statute, equity or other theory of law, including, but not limited to, the breach of any legal duty or the fault, negligence, or strict liability of either party. 6.6 This Agreement shall be governed, construed, and enforced in accordance with the laws of the state in which our servicing office is located, without regard to its conflict of laws rules. The laws of the state of our servicing office will govern all disputes, and all claims shall be heard in the state or federal courts for that state. Each of us waives trial by jury. 6.7 No officer or employee acting within the scope of employment shall have individual liability for his or her acts or omissions, and you agree not to make a claim against individual officers or employees. Section 7: General Indemnification 7.1 We will indemnify and hold you harmless from and against demands, damages, and expenses of others to the comparative extent they are caused by our negligent acts or omissions or those negligent acts or omissions of persons for whom we are legally responsible. You will indemnify and hold us harmless from and against demands, damages, and expenses of others to the comparative extent they are caused by your. negligent acts or omissions or those negligent acts or omissions of persons for whom you are legally responsible. 7.2 To the extent it may be necessary to indemnify either of us under Section 7.1, you and we expressly waive, in favor of the other only, any immunity or exemption from liability that exists under any worker compensation law. 7.3 You agree to indemnify us against losses and costs arising out of claims of patent or copyright infringement as to any process or system that is specified or selected by you or by others on your behalf. Section 8: Miscellaneous Provisions 8.1 We will provide a certificate of insurance to you upon request. Any claim as an Additional Insured shall be limited to losses caused by our negligence. 8.2 You and we, for ourselves and our insurers, waive all claims and rights of subrogation for losses arising out of causes of loss covered by our respective insurance policies. 8.3 Neither of us will assign or transfer any interest, any claim, any cause of action, or any right against the other. Neither of us will assign or otherwise transfer or encumber any proceeds or expected proceeds or compensation from the project or project claims to any third person, whether directly or as collateral or otherwise. 8.4 This Agreement may be terminated early only in writing. You will compensate us for fees earned for performance completed and expenses incurred up to the time of termination. 8.5 If any provision of this Agreement is held invalid or unenforceable, then such provision will be modified to reflect the parties' intention. All remaining provisions of this Agreement shall remain in full force and effect. 8.6 No waiver of any right or privilege of either party will occur upon such party's failure to insist on performance of any term, condition, or instruction, or failure to exercise any right or privilege or its waiver of any breach. GC -ESA Revised 1/1/2018 Page 2 of 2 BRAUN INTERTEC The Science You Build On. Braun Intertec Corporation 11001 Hampshire Avenue S Minneapolis, MN 55438 January 19, 2018 Proposal QTB071989 Ms. Heather Butkowski City of Lauderdale 1891 Walnut Street Lauderdale, MN 55113 Re: Proposal for Pre -Demolition Hazardous Materials Inspection Services Former School/Church 1795 Eustis Street Lauderdale, MN (the Site) Dear Ms. Butkowski: Phone: 952.995.2000 Fax: 952.995.2020 Web: braunintertec.com Braun Intertec Corporation is pleased to provide this proposal for environmental consulting services for the Site. As part of this agreement, we are proposing completion of a Pre -Demolition Hazardous Materials Inspection of the existing building to identify hazardous materials that will require removal prior to building demolition. It is our understanding that the Site includes a two-story former school building, currently occupied by a church, which is scheduled to be demolished. Proposed Scope of Services The Minnesota Department of Health (MDH) and Minnesota Pollution Control Agency (MPCA) require building owner's to identify all regulated or hazardous materials prior to building demolition. We are proposing to conduct a Pre -Demolition Hazardous Materials Inspection (Pre -Demo Inspection) of the existing building at the Site. The goal of the Pre -Demo Inspection will be to identify asbestos -containing materials (ACM) and other potentially hazardous materials that require separate handling and/or disposal prior to building demolition. MDH and MPCA require destructive investigations be performed prior to demolition, to identify hazardous building material in currently inaccessible areas. This includes such areas as inside walls, soffits and chases; above ceilings; under floors; etc. Our representatives will perform the following services: • Review available documentation, if available, with regard to ACM or other miscellaneous hazardous materials. Data from any available documentation will be incorporated in the Pre - Demo Inspection as appropriate to limit the number of samples collected and analyzed. • Visually examine accessible areas and identify the locations of suspect ACM, polychlorinated biphenyls (PCBs), mercury, and other miscellaneous hazardous materials. • Collect and analyze representative bulk samples of materials suspected of containing asbestos. For purposes of this proposal, it assumed that up to 100 samples will be collected and analyzed by polarized light microscopy (PLM). It is assumed that the samples will be submitted on 24-hour turnaround basis. AA/EOE City of Lauderdale Proposal QTB071989 January 19, 2018 Page 2 ■ Assign a hazard rating based on asbestos content with respect to the materials condition, friability, accessibility, and hazard potential. ■ Document the various materials current conditions. • Generate a report summarizing the results of the Pre -Demo Inspection, documenting analysis results and quantities of ACM, providing an inventory of hazardous materials, and providing recommendations for any additional inspection that may be needed. • Depending on the results of the Pre -Demo Inspection, prepare a budget estimate that outlines the potential ACM abatement and hazardous materials removal costs, including oversight and documentation costs. Braun Intertec personnel conducting the inspection are fully accredited asbestos inspectors, in accordance with state and federal regulations. The microscopy laboratory is fully accredited for PLM asbestos bulk sample analysis by the National Institute of Standards and Technology's (NIST) National Voluntary Laboratory Accreditation Program. The scope of work above, and associated costs, assume that a full Pre -Demo Inspection, including destructive sampling techniques, can be conducted at the Site. However, if the initial inspection is limited to non-destructive sampling techniques due to access and ownership concerns, a follow-up inspection will be required once the buildings are vacant and unoccupied to complete the required roof sampling and destructive survey methods. Therefore, additional costs may be incurred. Sampling of materials for asbestos content is accomplished by collecting small cross-sections of each suspect material. Damage to the building and associated components are inevitable; however we will make every effort to limit aesthetic damage. Our representatives will not be responsible for repairing materials damaged during sampling. In any building, the potential exists for asbestos or other hazardous materials to be located inside walls, above ceilings, under floors, buried underground, and other inaccessible areas. This inspection will attempt to identify asbestos and other hazardous materials in these inaccessible areas. However, it is not feasible to inspect 100 percent of these areas. Therefore, Braun Intertec cannot be held responsible for the presence of any such hidden materials. Cost Estimate/Terms Based on our current understanding of the Site conditions and the assumptions stated estimated cost for the proposed services is provided below: Service Description Pre -Demolition Hazardous Materials Inspections On-site Inspection Activities and Associated Expenses/Fees Laboratory Analysis Project Management and Reporting Estimated Total herein, the total Cost Estimate $4,010 726 1,242 $5,978 City of Lauderdale Proposal QTB071989 January 19, 2018 Page 3 The total estimated cost for the proposed services will not be exceeded without additional authorization. Braun Intertec's services will be invoiced on a time and materials basis. Payment for services is net 30 days with interest added to unpaid balances. Services will be provided in accordance with terms stated in the attached Braun Intertec General Conditions which are a part of our agreement. If additional services are required beyond the estimated cost, Braun Intertec will notify the Client to obtain authorization. Anticipated Schedule The Pre -Demolition Hazardous Materials Inspection will be completed within 2 weeks from authorization. It is anticipated that this task will be scheduled and completed as necessary to meet project deadlines/milestones. If our proposed scope of services cannot be completed according to this schedule due to circumstances beyond our control, we may need to revise this proposal prior to completing the remaining tasks. General Remarks Braun Intertec appreciates the opportunity to present this proposal to you. It is being sent in an electronic version only. Please return a signed copy of the proposal in its entirety. If you have any questions regarding this proposal, please do not hesitate to contact Derek Schilling at 952.995.2674. Sincerely, BRAUN INTERTEC CORPORATION p.efek M. Schilli Associate Princip'al — Senior Scientist Environmental Consulting Director PG, CHMM Gregg D. Kruse Attachment: General Conditions (1/1/18) The proposal is accepted, and you are authorized to proceed. Authorizer's Firm Authorizer's Signature Authorizer's Name (please print or type) Authorizer's Title Date BRAUN INTERTEC General Conditions Section 1: Agreement 1.1 Our agreement with you consists of these General Conditions and the accompanying written proposal or authorization ("Agreement"). This Agreement is the entire agreement between you and us. It supersedes prior agreements. It may be modified only in a writing signed by us, making specific reference to the provision modified. 12 The words "you," "we," "us," and "our" include officers, employees, and subcontractors. 1.3 In the event you use a purchase order or other documentation to authorize our scope of work ("Services"), any conflicting or additional terms are not part of this Agreement. Directing us to start work prior to execution of this Agreement constitutes your acceptance. If, however, mutually acceptable terms cannot be established, we have the right to terminate this Agreement without liability to you or others, and you will compensate us for fees earned and expenses incurred up to the time of termination. Section 2: Our Responsibilities 2.1 We will provide Services specifically described in this Agreement. You agree that we are not responsible for services that are not expressly included in this Agreement. Unless otherwise agreed in writing, our findings, opinions, and recommendations will be provided to you in writing. You agree not to rely on oral findings, opinions, or recommendations without our written approval. 2.2 In performing our professional services, we will use that degree of care and skill ordinarily exercised under similar circumstances by reputable members of our profession practicing in the same locality. If you direct us to deviate from our recommended procedures, you agree to hold us harmless from claims, damages, and expenses arising out of your direction. If during the one year period following completion of Services it is determined that the above standards have not been met and you have promptly notified us in writing of such failure, we will perform, at our cost, such corrective services as may be necessary, within the original scope in this Agreement, to remedy such deficiency. Remedies set forth in this section constitute your sole and exclusive recourse with respect to the performance or quality of Services. 2.3 We will reference our field observations and sampling to available reference points, but we will not survey, set, or check the accuracy of those points unless we accept that duty in writing. Locations of field observations or sampling described in our report or shown on our sketches are based on information provided by others or estimates made by our personnel. You agree that such dimensions, depths, or elevations are approximations unless specifically stated otherwise in the report. You accept the inherent risk that samples or observations may not be representative of things not sampled or seen and further that site conditions may vary over distance or change over time. 2.4 Our duties do not include supervising or directing your representatives or contractors or commenting on, overseeing, or providing the means and methods of their services unless expressly set forth in this Agreement. We will not be responsible for the failure of your contractors, and the providing of Services will not relieve others of their responsibilities to you or to others. 2.5 We will provide a health and safety program for our employees, but we will not be responsible for contractor, owner, project, or site health or safety. 2.6 You will provide, at no cost to us, appropriate site safety measures as to work areas to be observed or inspected by us. Our employees are authorized by you to refuse to work under conditions that may be unsafe. 2.7 Unless a fixed fee is indicated, our price is an estimate of our project costs and expenses based on information available to us and our experience and knowledge. Such estimates are an exercise of our professional judgment and are not guaranteed or warranted. Actual costs may vary. You should allow a contingency in addition to estimated costs. Section 3: Your Responsibilities 3.1 You will provide us with prior environmental, geotechnical and other reports, specifications, plans, and information to which you have access about the site. You agree to provide us with all plans, changes in plans, and new information as to site conditions until we have completed Services. 3.2 You will provide access to the site. In the performance of Services some site damage is normal even when due care is exercised. We will use reasonable care to minimize damage to the site. We have not included the cost of restoration of damage in the estimated charges. 3.3 You agree to provide us, in a timely manner, with information that you have regarding buried objects at the site. We will not be responsible for locating buried objects at the site. You agree to hold us harmless, defend, and indemnify us from claims, damages, losses, penalties and expenses (including attorney fees) involving buried objects that were not properly marked or identified or of which you had knowledge but did not timely call to our attention or correctly show on the plans you or others furnished to us. 3.4 You will notify us of any knowledge or suspicion of the presence of hazardous or dangerous materials present on any work site or in a sample provided to us. You agree to provide us with information in your possession or control relating to such materials or samples. If we observe or suspect the presence of contaminants not anticipated in this Agreement, we may terminate Services without liability to you or to others, and you will compensate us for fees earned and expenses incurred up to the time of termination. BRAUN INTERTEC 3.5 Neither this Agreement nor the providing of Services will operate to make us an owner, operator, generator, transporter, treater, storer, or a disposal facility within the meaning of the Resource Conservation Recovery Act, as amended, or within the meaning of any other law governing the handling, treatment, storage, or disposal of hazardous substances. You agree to hold us harmless, defend, and indemnify us from any damages, claims, damages, penalties or losses resulting from the storage, removal, hauling or disposal of such substances. 3.6 Monitoring wells are your property, and you are responsible for their permitting, maintenance, and abandonment unless expressly set forth otherwise in this Agreement. 3.7 You agree to make all disclosures required by law. In the event you do not own the project site, you acknowledge that it is your duty to inform the owner of the discovery or release of contaminants at the site. You agree to hold us harmless, defend, and indemnify us from claims, damages, penalties, or losses and expenses, including attorney fees, related to failures to make disclosures, disclosures made by us that are required by law, and from claims related to the informing or failure to inform the site owner of the discovery of contaminants. Section 4: Reports and Records 4.1 Unless you request otherwise, we will provide our report in an electronic format. 4.2 Our reports, notes, calculations, and other documents and our computer software and data are instruments of our service to you, and they remain our property. We hereby grant you a license to use the reports and related information we provide only for the related project and for the purposes disclosed to us. You may not transfer our reports to others or use them for a purpose for which they were not prepared without our written approval. You agree to indemnify, defend, and hold us harmless from claims, damages, losses, and expenses, including attorney fees, arising out of such a transfer or use. 4.3 If you do not pay for Services in full as agreed, we may retain work not yet delivered to you and you. agree to return to us all of our work that is in your possession or under your control. 4.4 Samples and field data remaining after tests are conducted and field and laboratory equipment that cannot be adequately cleansed of contaminants are and continue to be your property. They may be discarded or returned to you, at our discretion, unless within 15 days of the report date you give us written direction to store or transfer the materials at your expense. 4.5 Electronic data, reports, photographs, samples, and other materials provided by you or others may be discarded or returned to you, at our discretion, unless within 15 days of the report date you give us written direction to store or transfer the materials at your expense. GC Page 1 of 2 Section 5: Compensation 5.1 You will pay for Services as stated in this Agreement. If such payment references our Schedule of Charges, the invoicing will be based upon the most current schedule. An estimated amount is not a firm figure. You agree to pay all sales taxes and other taxes based on your payment of our compensation. Our performance is subject to credit approval and payment of any specified retainer. 5.2 You will notify us of billing disputes within 15 days. You will pay undisputed portions of invoices upon receipt. You agree to pay interest on unpaid balances beginning 30 days after invoice dates at the rate of 1.5% per month, or at the maximum rate allowed by law. 5.3 If you direct us to invoice a third party, we may do so, but you agree to be responsible for our compensation unless the third party is creditworthy (in our sole opinion) and provides written acceptance of all terms of this Agreement. 5.4 Your obligation to pay for Services under this Agreement is not contingent on your ability to obtain financing, governmental or regulatory agency approval, permits, final adjudication of any lawsuit, your successful completion of any project, receipt of payment from a third party, or any other event. No retainage will be withheld. 5.5 If you do not pay us in accordance with this Agreement, you agree to reimburse all costs and expenses for collection of the moneys invoiced, including but not limited to attorney fees and staff time. 5.6 You agree to compensate us in accordance with our Schedule of Charges if we are asked or required to respond to legal process arising out of a proceeding related to the project and as to which we are not a party. 5.7 If we are delayed by factors beyond our control, or if project conditions or the scope or amount of work changes, or if changed labor conditions result in increased costs, decreased efficiency, or delays, or if the standards or methods change, we will give you timely notice, the schedule will be extended for each day of delay, and we will be compensated for costs and expenses incurred in accordance with our Schedule of Charges. 5.8 If you fail to pay us in accordance with this Agreement, we may consider the default a total breach of this Agreement and, at our option, terminate our duties without liability to you or to others, and you will compensate us for fees earned and expenses incurred up to the time of termination. 5.9 In consideration of our providing insurance to cover claims made by you, you hereby waive any right to offset fees otherwise due us. Section 6: Disputes, Damage, and Risk Allocation 6.1 Each of us will exercise good faith efforts to resolve disputes without litigation. Such efforts will include, but not be limited to, a meeting(s) attended by each party's representative(s) empowered to resolve the dispute. Before either of us commences an action against the other, disputes (except collections) will be submitted to mediation. 6.2 Notwithstanding anything to the contrary in this Agreement, neither party hereto shall be responsible or held liable to the other for punitive, indirect, incidental, or consequential damages, or liability for loss of use, loss of business opportunity, loss of profit or revenue, loss of product or output, or business interruption. 6.3 You and we agree that any action in relation to an alleged breach of our standard of care or this Agreement shall be commenced within one year of the date of the breach or of the date of substantial completion of Services, whichever is earlier, without regard to the date the breach is discovered. Any action not brought within that one year time period shall be barred, without regard to any other limitations period set forth by law or statute. We will not be liable unless you have notified us within 30 days of the date of such breach and unless you have given us an opportunity to investigate and to recommend ways of mitigating damages. You agree not to make a claim against us unless you have provided us at least 30 days prior to the institution of any legal proceeding against us with a written certificate executed by an appropriately licensed professional specifying and certifying each and every act or omission that you contend constitutes a violation of the standard of care governing our professional services. Should you fail to meet the conditions above, you agree to fully release us from any liability for such allegation. 6.4 For you to obtain the benefit of a fee which includes a reasonable allowance for risks, you agree that our aggregate liability for all claims will not exceed the fee paid for Services or $50,000, whichever is greater. If you are unwilling to accept this allocation of risk, we will increase our aggregate liability to $100,000 provided that, within 10 days of the date of this Agreement, you provide payment in an amount that will increase our fees by 10%, but not less than $500, to compensate us for the greater risk undertaken. This increased fee is not the purchase of insurance. 6.5 You agree to indemnify us from all liability to others in excess of the risk allocation stated herein and to insure this obligation. In addition, all indemnities and limitations of liability set forth in this Agreement apply however the same may arise, whether in contract, tort, statute, equity or other theory of law, including, but not limited to, the breach of any legal duty or the fault, negligence, or strict liability of either party. 6.6 This Agreement shall be governed, construed, and enforced in accordance with the laws of the state in which our servicing office is located, without regard to its conflict of laws rules. The laws of the state of our servicing office will govern all disputes, and all claims shall be heard in the state or federal courts for that state. Each of us waives trial by jury. 6.7 No officer or employee acting within the scope of employment shall have individual liability for his or her acts or omissions, and you agree not to make a claim against individual officers or employees. Section 7: General Indemnification 7.1 We will indemnify and hold you harmless from and against demands, damages, and expenses of others to the comparative extent they are caused by our negligent acts or omissions or those negligent acts or omissions of persons for whom we are legally responsible. You will indemnify and hold us harmless from and against demands, damages, and expenses of others to the comparative extent they are caused by your negligent acts or omissions or those negligent acts or omissions of persons for whom you are legally responsible. 7.2 To the extent it may be necessary to indemnify either of us under Section 7.1, you and we expressly waive, in favor of the other only, any immunity or exemption from liability that exists under any worker compensation law. 7.3 You agree to indemnify us against losses and costs arising out of claims of patent or copyright infringement as to any process or system that is specified or selected by you or by others on your behalf. Section 8: Miscellaneous Provisions 8.1 We will provide a certificate of insurance to you upon request. Any claim as an Additional Insured shall be limited to losses caused by our negligence. 8.2 You and we, for ourselves and our insurers, waive all claims and rights of subrogation for losses arising out of causes of loss covered by our respective insurance policies. 8.3 Neither of us will assign or transfer any interest, any claim, any cause of action, or any right against the other. Neither of us will assign or otherwise transfer or encumber any proceeds or expected proceeds or compensation from the project or project claims to any third person, whether directly or as collateral or otherwise. 8.4 This Agreement may be terminated early only in writing. You will compensate us for fees earned for performance completed and expenses incurred up to the time of termination. 8.5 If any provision of this Agreement is held invalid or unenforceable, then such provision will be modified to reflect the parties' intention. All remaining provisions of this Agreement shall remain in full force and effect. 8.6 No waiver of any right or privilege of either party will occur upon such party's failure to insist on performance of any term, condition, or instruction, or failure to exercise any right or privilege or its waiver of any breach. GC Revised 1/1/2018 Page 2 of 2 NOVR9 CONSULTING Client Name: Address: Contact: Contact Phone: Email Address: Fax Number: City of Lauderdale 1891 Walnut Street Lauderdale, MN 55113 Quotation for Services Nova Account Manager: Email Address: Nova Office Address: Heather Butkowski Account Manager Phone: 651-792-7657 Nova Office Fax: heather.butkowski@lauderdalemn.org Proposal Number: Proposal Date: Corporate Headquarters Minneapolis, MN Serving our clients Nationwide Paul Johnson paul.johnson@novaconsulting.com Nova Consulting Group, Inc. 1107 Hazeltine Blvd. Suite 400 Chaska, MN 55318 (952) 212-6994 (952) 448-9572 P0277-2018 1/19/2018 Project Name: Project Location: Chinese Christian Church 1795 Eustis Street Lauderdale, MN 55113 Scope of Work: ASTM Phase I Environmental Site Assessment (ESA). Pre -demolition hazardous material survey including an inventory of suspect asbestos containing materials, sampling and analysis of up to 150 samples for asbestos, and an inventory of the MPCA special waste items identified on the MPCA pre -demolition checklist. Reports will include cost estimates for Phase 2 activities if necessary and abatement of identified hazardous materials. Parcel ID 172923330001 Category Item Est Qty Rate Unit Line Total Lump Sum Phase I ESA 1 $1,600.00 Site $1,600.00 Other Hazardous Material Survey 1 $4,550.00 Lump $4,550.00 Sum Total: $6,150.00 INVOICING INFORMATION: Verify billing address. We will invoice the Client listed at above address. Is this correct? (choose one): Yes: ❑ No: If No, please provide correct Billing Name, Address, and Email: Deliverables: Reports will be delivered electronically via email. The undersigned is an authorized representative of City of Lauderdale and authorizes Nova Consulting Group, Inc. to proceed in accordance with the services described above and agrees that City of Lauderdale will be responsible for payment. Client Name: Authorized Signature: Title: City of Lauderdale Nova Consulting Group, Inc. - An equal opportunity employer Enclosures: General Conditions Date: Terms of payment for services are net 30 days with interest added to unpaid balances as specified on our attached General Conditions which are part of this proposal. Nova Consulting Group, Inc. - An equal opportunity employer Novafv Consulting Group, Inc. NOVA CONSULTING GROUP, INC. AGREEMENT OF GENERAL CONDITIONS SECTION 1. SERVICES AND COMPENSATION. 1.1 Nova Consulting Group, Inc., a Minnesota corporation (NOVA), shall provide CLIENT the services described in the NOVA Proposal or Authorization Agreement attached hereto (the "Services") in accordance with the terms thereof and hereof. In the event that these General Conditions are inconsistent with the terms of the attached Proposal or Authorization Agreement, the terms of such Proposal or Authorization Agreement shall govern. CLIENT shall pay for the Services as agreed, and a statement of probable cost made to CLIENT shall not be binding on NOVA unless stated as a "not -to -exceed cost." NOVA shall provide additional services as requested by CLIENT or as required due to a material increase in the scope of the Services, and CLIENT will pay for those additional services at the rate shown on the attached Proposal, Authorization Agreement or Schedule of Charges. SECTION 2. GENERAL RESPONSIBILITIES. 2.1 NOVA will test samples submitted by CLIENT, or will obtain and test samples as agreed upon by the parties. CLIENT acknowledges that NOVA will not sample each increment of the area or object to be tested. CLIENT acknowledges that the results of such testing will indicate actual conditions only of the specific increments sampled from which NOVA can make certain inferences, but that NOVA cannot and does not guarantee that its procedures will produce results representative of the entire area or object from which the incremental sample was taken. 2.2 NOVA shall not be responsible for the performance of any activity or obligation other than the Services. The performance of the Services by NOVA shall not be construed to relieve any third party of their responsibilities. For mold and other environmental issues, if the original conditions that created the issues are not corrected, mold and other environmental concerns may return. NOVA does not guarantee that mold and environmental concerns have been completely remediated. 2.3 NOVA shall be responsible only for the supervision of its employees in the performance of the Services, and NOVA shall not be responsible for superintending, supervising or directing the work of any third party or for job site safety. 2.4 Nothing in this agreement shall be construed to require NOVA to assume the status of a generator, storer, treater, hauler or disposal facility within the scope of the Resource Conservation Recovery Act, 42 USC Chapter 82, or within any state law regarding the handling, treatment, storage or disposal of water or hazardous materials. 2.5 CLIENT shall provide NOVA, in writing if requested, all information known to CLIENT regarding existing and proposed conditions of the site relevant to the Services. 2.6 CLIENT shall immediately notify NOVA if any new information or data of which CLIENT becomes aware that materially differs from information previously provided to NOVA. CLIENT warrants the completeness and accuracy of information supplied by it to NOVA and acknowledges that NOVA is relying upon such information without verification by NOVA of its completeness and accuracy. 2.7 CLIENT shall, at its expense, be responsible for obtaining all necessary permits and approvals relating to the Services. NOVA will provide reasonable assistance to CLIENT for that purpose. SECTION 3. ACCESS AND RESTORATION. 3.1 CLIENT shall provide NOVA access to the site related to the Services, and NOVA agrees to take reasonable precautions to minimize damage to the site. However, CLIENT acknowledges that some damage may occur to the site or sampled materials during the normal course of the Services. The correction of any such damage shall be the responsibility of CLIENT or, at CLIENT'S option, NOVA will correct the damage for a charge based upon NOVA'S then current rate. SECTION 4. SAMPLES. 4.1 All test samples remaining after the Services have been performed shall be discarded by NOVA at NOVA'S expense, unless CLIENT requests, in writing, within thirty days of receipt of the written report relating to those samples, that NOVA store or ship those samples at cost, plus 15 percent. Nova Consulting Group, Inc. - An equal opportunity employer SECTION 5 REPORTS. 5.1 As part of the Services, NOVA will provide CLIENT with written reports containing test results and, when appropriate, recommendations and suggestions relating to compliance with established criteria for remedial action. 5.2 All reports, notes, calculations and other data prepared or collected by NOVA, in performance of the Services, shall be considered instruments of service and shall remain the property of NOVA. 5.3 If CLIENT does not pay for the Services as agreed, CLIENT shall return to NOVA, upon demand, all reports and other work finished by NOVA to CLIENT or CLIENT'S agents and such reports and work shall not be used by CLIENT for any purpose. 5.4 NOVA shall retain all material documents relating to the Services for five years following the submission of the report relating to the Services. SECTION 6. PAYMENT, INTEREST, AND BREACH. 6.1 Unless otherwise agreed, invoices for the Services shall be issued monthly and shall be payable in full upon receipt. Invoices issued will be NOVA'S standard invoice. If another invoice format is required, NOVA reserves the right to charge CLIENT for the sum required to prepare CLIENT'S invoice in its own format. Invoices not paid when due are subject to interest from the 315' day at the rate of 11/2 percent per month, or the maximum rate allowed by law, whichever is less, for any unpaid portion thereof. 6.2 CLIENT acknowledges and agrees that NOVA may, at its option, increase its billing rates on each anniversary of the date of this Agreement. NOVA shall promptly notify CLIENT of any such increases. 6.3 If CLIENT fails to pay in full any invoice within 60 days of the date thereof, NOVA may, at its option, declare this Agreement to be in default and terminate all of its duties hereunder without liability to CLIENT or others. Upon termination hereof, CLIENT shall pay NOVA for services rendered, plus reasonable termination expenses. 6.4 If CLIENT cancels the Services, the CLIENT agrees to pay all the service -specific costs incurred, such as regulatory database and non-recoverable travel costs, plus fees based on the percentage of the Services completed at the time of cancellation. SECTION 7. INSURANCE. 7.1 Upon request, NOVA will furnish CLIENT a Certificate of Insurance. If CLIENT requests additional or increased insurance coverage, NOVA will, if possible, purchase such insurance at CLIENT'S expense in accordance with the Schedule of Charges. NOVA shall not be liable to anyone for claims covered by such policies beyond the limits and conditions of those policies. SECTION 8. STANDARD OF CARE. 8.1 NOVA shall perform the Services using that degree of care and skill ordinarily exercised under similar circumstances by reputable members of its profession practicing in the same locality. NO OTHER WARRANTY, EXPRESSED OR IMPLIED, INCLUDING THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, IS MADE OR INTENDED RESPECTING THE SERVICES. SECTION 9. DISPUTES. 9.1 If NOVA prevails in a lawsuit against CLIENT to collect its fees, then all collection expenses, including, without limitation, reasonable attorneys' fees, will be paid by CLIENT. 9.2 If CLIENT brings a lawsuit against NOVA which is dismissed, or as to which a verdict is rendered for NOVA, in whole or in part, CLIENT will pay NOVA its costs of defense, including, without limitation, reasonable attorneys' fees. Any lawsuit arising out of this agreement will be held in the state of Minnesota SECTION 10. INDEMNIFICATION. 10.1 CLIENT understands that by engaging NOVA to perform the Services, NOVA is relying on CLIENT'S performance of its obligations hereunder and CLIENT is requesting NOVA, for CLIENT'S benefit, to undertake what may be uninsurable obligations. Therefore, CLIENT shall indemnify, defend and hold harmless NOVA, its affiliates, and their respective directors, officers, employees, agents and subcontractors, from and against all claims, damages, losses, and related expenses (including, without limitation, reasonable attorneys' fees), arising out of or in any way connected with: (i) the breach of CLIENT'S duties under Section 2.5, including without limitation, damage to subterranean structures and utilities that are not properly identified by CLIENT to NOVA; (ii) the termination of this Agreement pursuant to Section 6.3; (iii) the presence, discharge, release or escape of hazardous substances of an kind; (iv) service for the investigation of remedial work related to asbestos, hazardous waste, air, soil or ground water contamination, or other hazardous materials, vapors or substances; and (v) the interpretation of the results of the Services other than for the purposes disclosed by CLIENT to NOVA in writing. SECTION 11. LIMITATION OF LIABILITY. Either party's liability to each other, and all persons claiming through either party, for damages as to which the indemnification set forth in Section 10 does not apply, is not permitted by state law, or that arises out of breach of any other obligation to either party or others, will be limited to an amount not to exceed NOVA'S charges for the Services per site and per scope. Nova Consulting Group, Inc. - An equal opportunity employer SECTION 12. MISCELLANEOUS 12.1 This Agreement is the entire Agreement between NOVA and CLIENT and it supersedes all prior written or oral agreements with respect to the subject matter hereof, including CLIENT'S additional or different terms and conditions that may be contained in any purchase order, work order, acknowledgement form, or other document forwarded by CLIENT to NOVA and to which notice of objection is hereby given. No amendment or assignment of this Agreement shall be effective unless agreed to in writing and signed by authorized representatives of both parties. 12.2 NOVA'S services are performed as an independent contractor and not as the CLIENT'S employee, agent, partner or joint venturer. 12.3 NOVA shall have no liability for any failure to perform or delay in performance due to any circumstances beyond its reasonable control. 12.4 The terms of this Agreement shall be governed by the substantive laws (and not the laws of conflicts of) the State of Minnesota. Nova Consulting Group, Inc. - An equal opportunity employer LAUDERDALE COUNCIL ACTION FORM Action Requested Consent X Public Hearing Discussion Action Resolution Work Session Meeting Date January 23, 2018 ITEM NUMBER Hughes Phased Retirement STAFF INITIAL APPROVED BY ADMINISTRATOR DESCRIPTION OF ISSUE AND PAST COUNCIL ACTION: Attached is the Phased Retirement Agreement that would allow Joe Hughes to work for the City on a limited basis in 2018. You may recall that some funding was included in the budget for this. This would be the fourth year of five that Joe is eligible to continue working for the City. STAFF RECOMMENDATION: By approving the Consent Agenda, the Council approves the Phased Retirement Agreement with Joe Hughes as presented. CITY OF LAUDERDALE Phased -Retirement Option (PRO) Agreement Retiree/Employee Name: Joe Hughes Job Title: Public Works Maintenance Date: January 3, 2018 This agreement provides information regarding your benefits and other terms and conditions as an employee covered by participation in the Phased -Retirement Option (PRO). available through the Public Employees Retirement Association (PERA). This information applies only to you and to your position with the City. It may constitute a departure from normal City policies and procedures, but it does not set any precedents or change existing city policies. Compensation: ❑ Your pay will be $28.00 per hour up to $7, 000. This is approximately 250 hours. Group Health & Dental Insurance: ❑ You may no longer participate in the City's health and dental insurance plans. Other Group Plans: ❑ You may no longer participate in the City's life or disability insurance. The City will no longer contribute to your deferred compensation plan. Vacation/Sick Leave: ❑ You will no longer accrue vacation or sick leave. Holidays and On -Call: ❑ It is not expected that you will be asked to be on-call. In the event you are, you will receive the compensation spelled out in the most current union agreement. In the event you are called into work on a holiday, you will receive the compensation spelled out in the most current union agreement. By signing below, the City and employee acknowledge agreement to the above terms of employment. The Employee: On behalf of the City: Joseph Hughes Mary Gaasch, Mayor LAUDERDALE COUNCIL ACTION FORM Action Requested Consent Public Hearing Discussion Action Resolution Work Session X Meeting Date January 23, 2018 ITEM NUMBER _Comp Plan Update STAFF INITIAL APPROVED BY ADMINISTRATOR DESCRIPTION OF ISSUE AND PAST COUNCIL ACTION: The Comprehensive Plan Steering Committee has been meeting faithfully for the past year and their work will soon come to an end. Swanson Haskamp staff spent time last summer meeting with business owners and residents and reviewing the comments coming in through the Plan's website. The final open house will be held in March. Swanson Haskamp staff will soon be translating what they have learned into the text of the 2040 Comprehensive Plan. Prior to doing that, however, staff asked Jennifer Haskamp to update the Council on the vision heard from the Steering Committee and community and highlight a couple of are- as where Council perspective is needed before the draft Plan is prepared. As the City Attorney, Ron Batty, will be at the meeting, it is an opportune time to also revis- it the legal standing of the Comprehensive Plan in relation to zoning ordinances and the changes that will need to take place after the Plan is adopted. Following are the materials from the most recent Comprehensive Plan Steering Committee meeting. Jennifer has proposed changing some of the current zoning districts to reflect and encourage the type of investment the Committee said should be sought, especially through the Larpenteur Avenue corridor and along Eustis Street south of Larpenteur Avenue. Let staff know if you have questions in advance of the meeting. OPTIONS: STAFF RECOMMENDATION: COUNCIL ACTION: Br•adv1/ 2 St •I_. Re -Guide DiscussionSteerrng 1/17/2 018 Ave W Re -Gu. de: MU -11115R / iaRperlt tf . L mente?n Ave N C Re -Guide:?? GL ide:?? 2030 Land Use Designations Medium Density Res Institutional High Density Residential Open Space El Mixed Use ® Park & Recreation _ Industrial Map Designation 2030( Mixed Use (Corresponds to the B 1 Community Business, P and the R-3 Multiple Residential zoning descriptions.) Map Designations 2030 11 Residential Designations (Corresponds to the R-1 and R-2) 2030 Comprehensive Plan Land Use Description MXD: 6to 15 D. U./Acre R-3 Multiple Residential zoning Allows for churches, multiple family dwellings, public and parochial schools,publicparks, and townhouses. Previously, the area between TH280 and Eustis from the southern City border to 330 feet south of Larpenteur Avenue was designated R-3 — Multiple Residential. Since this area was rezoned for business and industrial uses, an R-3 district has not existed in the City. B-1 Community Business zoning Currently allows for commercial schools, eating and drinking places, motor fuel stations, offices and banks, parking lots, personal and professional services, public buildings, and retail businesses. The B-1 zoning district follows the first row of businesses and homes alongLarpenteur Avenue on the north and south from TH280 to Eustis Street plus the Union Building (2417 Larpenteur Avenue) on the northeast corner of Larpenteur and Eustis. New Mech's 1633 Eustis propertypublic was zoned B-1 in the mid-1990s. The 1997 zoning map also shows that the area owned by the Children's Home Society to the southern City border is zoned B-1. Note: B-1 zoning only allows multi -family housing as a conditional use. It does not allow housing over commercial, townhomes, condos or other housing uses; thereby limiting infill options and potentially preventing the creation of a "downtown" area. 2030 Corr;pre%ensive Plan Land Use Description MDR: 4 to 9 DU/Ac. HDR: 10 to 30 DU/Ac Medium Density Residential (R-1 Suburban Residential zoning description) R-1 Suburban Residential zoning allows for parks, schools, and single-family dwellings. The R-1 district comprises most of the City's land. All lots have sewer and water service. Disbursed among the detached single family homes are duplexes and small apartments (2 to 7 units) in the R-1 district. The three completed planned unit developments (PUDs) for townhomes, condominiums, and student apartments were zoned R-1. Additionally, two churches are located within the R-1 district. High Density Residential (R-2 Urban Residential zoning designation) Allows for public parks, public schools, and two-familydwellings. The 1997 Zoning g ' Mapdefines R 2 Urban Residential as the land on the southeast corner of Eustis Street and Larpenteur Avenue extending to Idaho Avenue on the south and Pleasant extended on the east. Currently, this area is high - density multi -family residential housing. This area also includes PUD zoning districts General Location Larpenteur Avenue Corridor - extending southerly down Eustis Street. Current location extends to existing multi-family/apartment properties. Designation is guided to southerly city boundary on west side of Eustis and includes Childrens Home Social Services. General Location Medium density residential is generally guided for existing single-family neighborhoods and Brandychase on the north side of Larpenteur, and Greenway apartments on the south side of Larpenteur. High Density Residential is guided only for City Gables. Considerations ea Feedback for Changes in 2040 Plan • North side of Larpenteur Mixed -Use area `feels' different than south side • Unclear what the objective for Mixed-use • Density of Mixed-use designation may not be adequate - particularly on south side (not enough units to make economics work) Requires/encourage pedestrian scale, pedestrian and bike connections, architectural quality, open spaces • Existing MF apartments may not be financially feasible for redevelopment - preserve as naturally occurring affordable housing • Some existing MF properties in excess of 30 DU/Acre Considerations 6 Feedback for Changes in 2040 Plan Protection of existing single-family neighborhoods ° Distinct feeling of neighborhood pattern on north side of Larpenteur in contrast to south side of Larpenteur • Concern regarding where and what types of new housing may be developed over the next planning period • New development of existing lots (i.e. tear downs); important to consider scale, relationship with adjacent structures, access to light, parking, etc. • Redevelopment of residential sites in addition to MXD designations - e.g. Chinese Christian Church site, adjacent to the seminary (conservancy land), others? • High Density Residential designation, with modifications and support designations, may offer more economically feasible options on redevelopment sites. Oty of aude doiHe Comprehensive pian 2040 S H PERKINS WILT c Modifications & Changes (Implementation ofFeedback) Larpenteur Avenue Corridor 2040 Mixed -Use Draft Designations (Will correspond to new, supporting, zoning districts) Residential Land 2040 Residential Draft (Will correspond to new, supporting, Uses Designations zoning districts) 2040 Comprehensive Plan - "What we have heard about the corridor" - Churches are good neighbors, single family homes work well together (people like neighborhood), love parks. - Desire for neighborhood amenities such as a coffee shop - Keep development along the north side of Larpenteur at a scale that is compatible with surrounding single-family neighborhoods. - Retain the small-town character of the community. - Interest in increasing the tax base 2040 Comprehensive Plan - "What we have heard about neighborhoods and housing" -Protect existing neighborhoods and affordability -Integrate neighborhoods; bridge the divide between north and south where possible -Existing MF/apartments along the corridor - prime for redevelopment, or NAOH? -New residents along Larpenteur may support more retail/comrnerce -No new development has happened, so its hard to envision needing something different Map Designations: Create two Mixed -Use designations; one for corridor parcels north of Larpenteur, and one for southerly properties Mixed -Use High Density (MU -HDR) Properties South of Larpenteur 10-30 DU/Acre, up to 50 DU/Acre with PUD Quasi -form based zoning code developed to ensure architectural standards, setbacks, heights, etc., this may result in two or three zoning districts ■ Mixed Use Medium Density (MU -MDR) • Properties North of Larpenteur 6-15 DU/Acre, up to 20 DU/Acre with PUD • Performance and architectural standards built into zoning district • May include hybrid form based zoning code, similar to MU -HDR Map Designations: Mod6 to add LDR, MDR and HDR to more accurately distinguish between SF neighborhood patterns, attached housing and MF, and higher density apartments Low Density %''esidential (LDR): 3-5 DU/AC This designation will primarily be applied to existing SF neighborhoods that the city wants to protect as such for this planning period (i.e. tear downs will result in a new SF structure, not alternate use) This would correspond to R-1 Zoning ■ Medium Density Residential (MDR): 5-10 DU/AC This designation will be applied to multi -family attached areas in the community, and any new areas of redevelopment anticipated for this type of development. This land use designation would be supported by a minim of one zoning district (R -2d) . High Density Residential 10-30 DU/AC This designation will be primarily be identified on parcels with existing high density residential uses and may be applied to redevelopment sites. Unit types, architectural styles, etc., can be development through quasi -form based codes, and other performance standards. This land use designation would be supported by a minimum of two zoning districts. (R-3 and R-4) Parcels/Areas for further discussion Chinese Christian Church Site Currently guided MDR; 4-9 DU/Ac Site is 1.7 Acres; max 10 to 12 Single Family (site planning/ constraint perspective) Considerations: What types of uses would be most appropriate? What is most important to consider in redevelopment? What does the market tell us? Conservation Land at Seminary . Currently guided Open Space, which allows no development; corresponds to C-1 (Conservancy) Zoning district Considerations: Currently under private ownership, `bundle' of property rights, what sticks does the city want? Is there a way to incorporate development, while protecting natural resource areas? What type of development could be acceptable? City of _auderdaie Comprehensive Pian 2040 LH PERKINS+WILL