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08-25-1997 EDA
�7 �i:'>'1iiiai�::�:�::i;:����:2����/��`'(.��<:��:���.�� ��'�i�, .. ` :..�::: #:moi['iii+< ' imilm :::;>:::':.:»:<:: ..� .:.LTi.�✓ Q. ('fir • :�S ,TI iii ' :......................:' <' �� ' �'t s 5 ............::.... ............................... 1. CALL TO ORDER 2. ROLL CALL President McCarty Vice President Koopmeiners Secretary Trude Commissioner Quick Commissioner Stigney 3. APPROVAL OF AGENDA EDA ACTION: ATD • Comments: 4. APPROVAL OF MINUTES July 28, 1997 EDA ACTION: ATD Comments: August 11, 1997 EDA ACTION: ATD Comments: August 18, 1997 . EDA ACTION: ATD Comments: • EDA Agenda • Page 2 5. CONSENT AGENDA None. 6. PUBLIC HEARING None. 7. EDA BUSINESS A. Consideration of Resolution No. 97-EDA73 Approving and Authorizing the Execution of a Participation Agreement for the Redevelopment of 8265 Spring Lake Road. Staff Report No. EDA-97-82C. (Staff Presenter:Jennifer Bergman, Housing Inspector). EDA ACTION: ATD Comments: • B. Consideration of Resolution No. 97-EDA67 Approving and Authorizing the Execution of a Development Assistance Agreement with Everest Group, Ltd., Regarding the Building"N"Project. Staff Report No. EDA-97-83C (Staff • Presenter: Cathy Bennett, Director of Economic Development) EDA ACTION: ATD Comments: C. Consideration of Resolution No. 97-EDA70 Appointing Economic Development Commission Member to Fill Vacancy. Staff Report No. EDA-97-84C. (Staff Presenter: Cathy Bennett, Director of Economic Development) EDA ACTION: ATD Comments: D. Consideration of Resolution NO. 97-EDA72 Authorizing the Negotiation and Execution of a Contract for Professional Services for the Development of Design Themes for Highway 10 Corridor. Staff Report No. EDA-97-85C. (Staff Presenter: Cathy Bennett, Director of Economic Development) EDA ACTION: ATD . 41, EDA Agenda Page 3 Comments: 8. REPORTS Report of EDA Board Members: 1. President McCarty: 2. Vice President Koopmeiners: 3. Secretary Trude: 4. Commissioners: A. Commissioner Quick: • B. Commissioner Stigney: 5. Clerk-Administrator Whiting: 6. Executive Director Bennett: 7. Treasurer Kessel: • _.. UNAPPR ON/ED : 1 PROCEEDINGS OF THE MOUNDS VIEW 2 ECONOMIC DEVELOPMENT AUTHORITY 3 4 Meeting No 40 5 6 July 28, 1997 Mounds View City Hall 2401 Hwy. 10,Mounds View MN 55112 8 *************: *****s**s************************************************************ 9 10 GAIL TO ORDER 11 12 The Economic Development Authority was called to order by President McCarty at 8:15 p.m.on July 28, 13 1997. 14 15 RLhti c1.+ 16 yx " • 17 MEMBERSSSE: Julie Trude,Gary Quick,"Roger Stiptey,Roger Koopmeiners,Duane McCarty .18 Director of Economic Development Cathy Bennett,Clerk Administrator Chuck Whiting,Community 19 Development Director Pam Sheldon,Jim Ericson,Planning Associate and City Attorney Bob Long. 20 21 OTTERS PRESS'; None 22 23 APP4OVAL OF AA*NDAt 24 25 ' MOT ON/SECOND: Trude/Koopmeiners to Approve the Agenda as presented. 27• 28 V 5 ayes. 0 nays Motion Carried 30 Arrtioviu,OF M N1 S 31 . M(YI'1ON/SECONb Trude/Quick to approve the minutes of the EDA Meeting on July 14, 1997 as 32 presented.d. 33 34. :VOTE: S ayes 0 nays Motion Carried 3S 36 c()NtENT"As1pip . 37 38 None 39 40 1' L : oc 42 Public Nearing and Consideration of Resolution No„97-EDA-72 Giving Conditional Approval to the 43 Sale of Land Located at 2625 Highway 10 for the Purposes of a Redevelopment Project 44: 45 President McCarty opened the Public Rearing tit 8:20 p.m 46 47 Ms.Pam Sheldon,Community Development Director,provided a brief overview of the project. She 48 explained that the applicant,MSP Real Estate;is requesting approval of a development plan for property 49 located at Highway 10 and Eastwood Road(approximately 3.7 acres);. This site contains an existing 50 apartment development on"the weeisside'.of the property consI ting of 40 units."The proposal is to add 16 III51 rental townhome s on three vacant lots to the east of Red Oak,Apartments. Of vacant lots,two are 52 privately held and one is owned by'the City(on the corner of Eastwood Road and Highway 10). She 53 explained that the City'purchased the ) property to address a problem with house on the corgerof EDA Meeting#40 July 28, 1997 u Page 2 1 Eastwood Road and Highway 10,and the house was demolished The city then proceeded to market the 2 property,attempting to obtain commercial development on the property. The city received no bids for the 3 property. The staff then went before Council,asking that a special:study be done of this property and 4 other properties in the area of Highway 10 to determine what types of uses were appmpriate given what 5 the market was seeking and possible restraints and opportunities with access points,the location adjacent • 6 to the highway,etc. This became known as the Area 9 Highway 10 Study. The study provided some 7 . recommendations as well as some discussion between the city and a developer who had been working in 8 the community;inthe past(MSP Real Estate). The recommendation from the consultant was for multi- ,1; 9 family development on the site. The proposalbeing considered for the site combinesthe three vacant 10 lots with the Red Oak Apartnpient development, It would include the addition of 16 rental townhomes and 11 the renovation of the Red Oak Apartments,operated as.one project. 12 a 13 Ms. Sheldon explained that at this time,the Red Oak Apartments are built at a density of 24.7 units/acre, 14 zoned R-4. The density on the apartment part of the project is higher than what would now be allowed R- 15 4 zoning(174,units/acre). If the new townhome project were combined with the Red Oak Apartments, 16 the overall density for the project would be reduced to 15 units/acre(due to the three vacant lots which 17 would be addled as a part oftheoverall development). Additionally the open space for each unit would 18 increase substantially. ..'She noted that one of the aspects of this project is that by combining all the land, 19 the end result is different than if the land is left as separate-lots. She noted that this development meets 20 the requirements for the building setback,parking lot,the lot width,the lot area,the building height,the 21 minimum floor area for each unit,and the open space requirements. Ms.Sheldon explained that the 22' developer asked the Planning Commission for a variance to put some of the parking spaces into"proof of 23 parking",which allows for more greenspace with a requirement that the applicant will build additional' 24 parking spaces if the city determines that more is needed. , 25 26 Ms.Cathy Bennett,Economic Development Director,explained that MSP Real Estate is requesting that • 27 the EDA sell the corner lot for a purchase price of$1.35 per square foot. There is approximately 35,000 28 square feet on the property for a total purchase price of$47,000. This is the same of ter they have given 29 the owners of the other twb vacant lots as part of the development. An appraisal was done on the vacant 30 lot and came in at$1.20 per square foot($42,000). When the EDA purchased the land in 1995,it was 31 purchased for$125,000 with a single family home that was in the process of beingconverted to a tri-plea: 32 . The property was deteriorating and after the city purchased it,it was demolished for.$6,000: The;initial 33 intention`was to redevelop the property for commercial ase. The city solicited requests for information to 34 25 local brokers and:the city did not receive any interest in redeveloping the area for commercial use. 35 .Some inquirieswere received but access was a critical part of their business and access was needed to 36 Highway 10. 37 38 Ms.Bennett briefly went through the income qualification guidelines for the rental units as well as the 39 proposed rental rates for the development.- She explained that a total of ten units would be set aside as 40 Hoffman Units under the Holiman Consent Decree. The Silver Lake Commons development proposal, 41 includes an on-site management office. She stated she has spent time talking with the Management firm 42 that MSP Real Estatewould contractwith and has checked with'several references of properties that they 43 have managed,ail of which gave them excellent reports. 44 45 Ms.Bennett stated staff is recommending approval of Resolution No 97-EDA-72. ; 46 47 Milo Pinkerton of MSP Real Estate,stated originally their proposal included a total of 28 townhomes. 48 Their company met with the neighborhood on two separate occasions and reduced the number to 16,based 49. upon neighborhood input to not have;access on Eastwood Road. The problems of deferred Maintenance • •s. 50 at the Red Oak Apartments will be'corrected. Over$23,000 will be invested in each unit including a new 51 roof with dormers,new railings,vinyl siding,garages will be torn down,new asphalt paving,new 52 . carpeting,paint,kitchen cabinets,vinyl flooring,heating/air conditioning as necessary. Two play areas EDA Meeting#40 July 28, 1997 UNAPPROVED Page 3 1 will be provided,one for larger kids and one for small gchildren. Mr.Pinkerton provided a slide III 2 presentation showing the natural buffer area that will surround the development. 3 4 Mr.Jeff Huggett of MSP Real Estate provided a brief summary of the recommendations by the EDC,and 5 the Planning Commission. He noted that the Planning Commission,the EDC,SRF Consulting Group, 6 Towle Real Estate and Mardell Amundson Appraisers have all reviewed the property and have determined 7 that this development is the highest and best use for the property. He presented a diagram depicting 8 neighboring residents who they have spoken to personally in regard to the development and who have 9 signed a petition infavorof the proposed development. He also provided a estate tax analysis on the 10 proposed development. 11 12 Ms.Lori Danzezan of Danzezan Properties was present and discussed issues pertaining to management of " 13 the project. 14 45 Mr.Mike Amundson of Mardell Amundson Johnson&Leirness,Inc.was present and discussed the u<, 16 Section 42 Property Evaluation. He noted that in his experience in evaluating Section 42 properties,he 17 has not found an instance where the property values of adjacent properties has been hurt. He believes 18 that this is because a property that receives a subsidy requires private investment and the private 19 investment is very much at risk. Investors of these properties tend to keep very close attention to the 20 management and ownership of the properties: He provided a copy of the article which appeared in the 21 Appraisal Journal in regard to the impact of low income housing on property values. 22 • ii , 23 Ms.Bennett explained that Resolution No.97-EDA-72 would give conditional approval of sale based on 24 the project. If the project did not go forward.the EDA would not be obligated to sell the land to MSP 5 Real Estate: 26 s 27 Presi denitrlcCarty.explained that the developer must meet all of the requirements of the EDA before the 28 property.:cQuld be transferred. 29 .• •• • L---- 30 Ms.Bennett explained that the developer needs to know that all of the land is going to be sold for the 31 project For financing,they need to know that they have conditional control of all of the land to make the 32 project go forward. 33 34 Commissioner Stigney wondered if this would be a commitment for the city. 35 36 President McCarty stated only to the extent that the developer meets the requirements that the city has 37 reserved to itself. It gives the city a wide open opportunity. Attorney Long explained that by passing a 38 conditional approval of the resolution,the council is directing staff to say that they are prepared to 39 consider a development agreement with the entity that will come back before the EDA,Board that would 40 lay out all of the final terms: 41 42 Jerry Linke,2319 Knollwood Drive,stated he is not opposed to low-income housing. The median income 43 for the residents of Mounds View is$35,000. Forty percent of the residents live in mobile homes or 44 apartments. Additionally,he has concerns that this development may affect the tax capacity value of the 45 city as a whole. This would increase property taxes throughout the city. He stated he feels Mounds 46 View is overburdened with low income and rental housing and he would urge the city not to proceed with • 47 this project. Furthermore,he noted that the appraisal of$1.20 per square foot was probably based on 48 apartment use. It would likely be higher if it were based oncommercial use. 49 41 50 Cindy Carlson,Western Bank,discussed.her understanding of the 1%tax rate. She stated she believes 1 the 1%tax rate is for those property owners that elect to have their properties categorized as ones that 52 have a preponderance of tenants that are classified as low andmoderate income. 53 EDA Meeting#40 UNAPPR DOVE July 28, 1997 Page 4 1 Mr. Linke recommended that the city purchase all of the property for$1.32/square foot using TIF funds, ill 2 demolish the buildings,and sell the land for commercial development. Ms.Bennett explained that 3 when the Request for Proposals were sent to the 25 metropolitan developers,it was for the entire site-7 4 acres-as a commercial development and the city did not even get one response. President McCarty 5 noted that the cost to purchase the apartments would be approximately$1.2 million(assessed value)plus 6 the purchase of the two vacant lots,the demolition and finally the relocation costs for all of the residents 7 in the buildings. 8 9 David Jahnke,8428 Eastwood Road,noted that there is really no guarantee that the management company 10 will be in place five years down the road. He feels the people who signed the petition in favor of the 11 development only did so because they were convinced that the situation would be better for them. He 12 does not feel that the property was put on the market long enough. Rental units do not give much of a tax" 13 base which is what Mounds View really needs. 14 Fes. 15 LW.Stigney,7841,Eastwood Drive,stated he is opposed to the development as Mounds View already 16 has 1,484 rental units in the city. The two buffered apartments on Eastwood are no effect on his property 17 value and he is not aware of any real crime situations. He sees there are a lot of holding ponds on the 18 proposal which he does not care for. He would like to see the property developed commercial to increase 19 the tax base. He is in favor of getting the Red Oak Apartments fixed up and would like to see the use of 20 TIF funds for this purpose whereby the city could work jointly with the owners to get the property 21 rehabilitated. He stated he does not feel the city has looked at all avenues and that by proceeding,the city 22 will be faced with a lot of ramifications in the fixture'. He does not believe it is in the best interest for the 23 city at this time. He presented a petition containing 91 signatures in opposition to the project which he 24 presented to the Council. 25 26 Deb Heuwinkel,7900 Eastwood Road,stated she has had past experiences with low income housing 27 which were undesirable and she is concerned about the same problems occurring at the Silver Lake 28 Commons development. She feels confident with the management company selected,but there are no 29 guarantees that in five years it would be the same. 30 31 Mike Strauss, 7830 Eastwood Road,stated he called Danzezan Properties to attempt to get addresses of 32 properties the company has managed in Minneapolis to check on her management record as well as how 33 many/type of police calls were at these properties over one year,however Ms.Danzezan refused to give 34 the information because of confidentiality. 35 36 Bill Fritz,8072 Long Lake Road,wondered how the median income was arrived at for Mounds View. 37 38 Jim Bergstrom,8400 Red Oak Drive.stated he is opposed to the development project He feels Mounds 39 View has enough rental properties. 40 41 Dorothy Winters,7831 Sunnyside Road,stated she is in favor of the project,however,she feels most 42 residents there would just like to see the property left as it is. 43 44 Chuck Lee,7820 Eastwood Road,stated he signed the petition in favor of the development,however after 45 obtaining more information,he is now opposed to it.. He did not know that 40%of Mounds View's 46 housing stock is made up of rental housing. 47 48 Cindy Carlson,representing the Economic Development Commission,stated the costs associated with 49 acquiring the Red OakbApartments,demolishing them to provide vacant land for development would be 50 substantial and to try to sell the land to a developer for commercial development for more than$3.00 per 51 square foot would be difficult. This was a large factor in the EDC's decision. They felt it was necessary 52 to address the deteriorating condition of the Red Oak Apartments in determining the highest and best use 53 for the site. She stated she believes that this project would be good for the community. • EDA Meeting#40 July 28, 1997 UNAPPROVED Page 5 • 1 2 Bill Werner,2765 Sherwood Road,stated it seemed like the options for the EDC are rather limited,that 3 being providing an economic development for some sort of immediate profit for the city. He wondered if 4 that was their total scope of their objectives. Ms.Carlson stated if the EDC was dealing only with 5 vacant land,and not the acquisition costs of$1.2 million,it would be a very different situation. Mr. 6 Werner wondered if the city had considered purchasing the two vacant lots and making the area into a 7 park. 8 9 Commissioner Quick noted that the city is trying to broaden it's tax base. President McCarty stated the 10 public has been lead to believe that the crime rate at the apartment buildings is not badhowever,he has a 11 stack of police reports and a memo from the Police Chief indicating that the Police Department would 12 appreciate any improvements made to the buildings. °Additionally,commercial development will 13 generate a great deal more traffic than residential and in order to make the property salable,the city would 14 need to guarantee that access would be available off Eastwood. The property.is zoned R-3 and the 15 owners today could develop the property at approximately three times the density of what is being 16 proposed by MSP Real Estate. 17 18 Commissioenr Stigney stated the council needs to determine if the city needs and wants this development. 19 He thinks perhaps rather than sell the corner lot,the city should consider purchasing the two adjacent lots 20 and then look at what can be done at the Red Oak Apartments. He strongly opposes this development. 21 The proposed rental rates are low. The developer is asking for a$230,000 deferred loan at 1%. He 22 wondered why the city would want to providethis for a development which he does not believe is good for 23 Mounds View. A discussion followed in regard to the number of police calls to the apartment complex. 24 25 Mary Amirahmadi,8330 Eastwood Rd. stated she just recently found out about the proposed project. She 26 does not feel there has been enough..publicity and that there should be more meetings or better information 27 out to the residents. She thinks the city should investigate other options. 28 29 Cameron Obert,8315 Greenwood Dr.,stated he does not have a problem with the project in general,but 30 does not see this development as fitting in with the big picture of Mounds View. He wondered why the 31 city allowed the apartment buildings to get so bad Where was the code enforcement? 3.2 33 David Jahnke wondered if approval of this could be delayed to allow the council time to look at other 34 alternatives for the site. 35 36 Mr.Pinkerton of MSP Real Estate responded to some of the concerns addressed by the residents. In 37 regard to a management guarantee,he stated they would be willing to make a commitment to have an on- 38 site management for the entire term. 39 40 L W. Stigney stated he does not feel the public was kept well informed of this development. 41 42 With no further comments,President McCarty closed the Public Hearing at 10:35 p.m 43 44 Commissioner Stigney stated he feels the council should look at other alternatives. Perhaps market rate 45 townhouses would be just as marketable as low income townhomes. Another alternative would be to 46 purchase the other adjacent property and put in some additional housing 47 48 Commissioner Trude stated that one report noted that commercial development was feasible if the lands 49 were all combined together. There is a lot of land in the city that has stood vacant for more than two 40 50` years and she feels the city needs to further investigate other options for the site. 'this type of 51 development is not the vision for Highway 10 that she heard from residents involved in the Focus 2000. 52 She believes the site would be better suited for commercial development. More opportunities need to be 53 pursued. E ° . Meeting#40 •6 1 2 MOTION/SECOND: Trude/Stigney to table the consideration of Resolution No.97-EDA-72,Giving., 3 Conditional Approval to the Sale of Land Located at 2625 HIghway 10 for the Purposes of a 4 Redevelopment Project: • 5 6 VOTE: 2 ayes 3 nays(McCarty/K(:+opn eaners/Quick) Ivlotion Fails 7 8 MOTION/SECOND: Koopmeiners/Quick to approve Resolution No.977EDA 72,Giving Conditional 9 Approval to the Sale of Land at 2625 Highway 10,for the Purposes of a Redevelopment Project,AS 10 AMENDED(to include the words"conditional"in paragraphs 2 and 3 of the Resolution). 11 12 Conunnissioner Trude asked if the Comnussioners Would like to add a condition_ that if they"change their 13 minds because of other,opportunities they become aware:of,or do they want 4o be locked into this 14 particular development opportunity. 15 :.. 16 Attorney Long noted that a motion could be passed,directing staff to come back'before the EDA with a 17 development agreement containing the necessary contingencies. 18 19 MOTION/SECOND: Koopmeiners/Qutick to direct staff to bring back for EDA consideration a proposed 20 development agreement containing contingencies including all the terms of sale. 2:1 22 VOTE: 3 ayes 2 nays(Trude/Stigney) Motion Carried 23 24 25.. RDA.BUSINRSS: 26 27 None ill - 28 29 REPO1T§: 30 31` Re of t qt'> D4 ;;and lVf9mbers 32 33 < Report of President McCarty:, No report, 34 35 Report of Vce President IKooptneiners: No report 36 37 Report of Secretary Trude: No report. 38 39 Report of Commnssipnes; 40 41 Commissioner Quick No report 42 43° Commissioner Stigney.: No report. 44 45 ; Report of Executive.Qirector: No report 46 47 Report of Treasurer. No report 48 49 Report of Attorney: No report 50 51 MOTION/SECOND: Quick/Trude to adjourn the'EDA Nrleeting:of July 28, 1997 at.10:45 p.m. 52 . , 41) 53 VOTE: • 5 ayes 0 nays" Motion Carried ' EDA Meeting#40 July 28, 1997 UNAPPROVED Page 7 • 1 2 Respectfully submitted, • 3 4 5 6 Tamara D. Saeflce 7 Recording Secretary 1110 1 PROCEEDINGS OF THE MOUNDS VIEW 2 ECONOMIC DEVELOPMENT AUTHORITY 3 4 Meeting No. 5 August 11,1997 6 • Mounds View City Hall 7 2401 Hwy. 10,Mounds View MN 551.12 g ***********************************************s*********************************** 9 10 CAM,L'TQ ORDS 11 12 The Economic Development Authority was called to order by Vice-President Koopmeiners at 9:06 p.m,on 13 August ll,1997. 14 15 BOLL cAjr1, 16 17 1vIEMBE11SPRDSENT: Julie Trude,Gary Quick,Roger Stigney,Roger Koopmeiners, Clerk Administrator 18 Chuck Whiting,'and City Attorney Scott Riggs 19 20 E I R4 ABSENT: Duane McCarty 21 ....: 22 O' S PRg$ ': None 23 24 Alop,ROVAL OF AGENDA: 25 0 26 Commissioner Trude asked that Agenda be amended to add Discussion about the use of Tax Increment 27 Financing for Housing. 28 29 IyfOTION/SgRONp: Quick/Trude to Approve the Agenda as amended 30 31 VOTE: 4 ayes 0 nays Motion Carried 32 33 ApPROVAL,OF IVIESTIETES: 34 35. There were no minutes for approval consideration. 36 37 CONSENT A I A: 38 39 None 40 41 A'l LIC H A Gs: 42 43_ None ; 44 45 EDA BIISI NESS; 46 47 Consideration of Approving an Exclusive Negotiation Agreement by and between the Mounds View Economic 48 Development Authority,City of Mounds View and Anthony Properties 49 50 MOTION/SECOND: QuickJKoopmeiners tQ table Approval of the Exclusive Negotiations Agreement by and 51 between the Mounds Vies/Economic DevelopnnentAuthority,City of Mounds View and Anthony Properties. 410 52. 53 VOTE: 2 ayes 2 nays(Trude/Stigney) Motion Fails 54 1 EDA Meeting#41 APPD ED August 11, 1997 • Paget 1 Commissioner Trude stated she feels more time needs to be spent looking at alternative uses for the site that is 2 being looked at'for multi-family housing and if that project appears to be going forward,she feels the city 3 should complete a thorough check on all of the projects that the developer was involved in at other areas. She 4 believes time needs to be spenton that project before the city starts considering other projects 5 proposed for the soccer field site. 6 7 MOTION/SECOND Quick/Koopmeiners to Approve the Exclusive Negotiations Agreement by and between 8 the Mounds View Economic Development Authority,City of Mounds view and Anthony Properties. 9 10 VOTE 2 ayes 2 nays(Trude/Stigney) Motion Fails 11 12 Discal Ion on the use of Tax Increment Financing for Multi-Family Housing in Mounds View. 13 14 Commissioner Trude noted that within the next few weeks,the city will be looking at using tax increment funds 15 for multi-family housing. She feels that the city has always looked at the use of TIF funds as a way to improve 16 the community's tax base. The legislature has begun limiting the use of TIF funds and there is a big emphasis 17 on looking for projects that create jobs and increase the tax base., She thinks the council should consider what 18 the ramifications are of using excess TIFfunds for projects such as multi-family housing. 19 20 MOTION/SECOND: Trude/Stigney to limit the use of tax increment funds for multi-family housing projects 21 in Mounds View. 22 411 : 23 VOTE: . 2 ayes 2 nays(Quick/Koopmeiners) Motion Fails 24 25 REPORTS: 26 27 Report of EDA Board Members: 28 29 Report of President McCarty No report 30 31 Report of Vice President Koopmeiners, No report 32 33 J eoortof Secretary Trude: No report 34 35 Report Qf Comtpissioners: 36 37 Commissioner Quick: No report. 38 39 Commissioner Stigney: No report 40 41 Report of Executive Director No report 42 43 Report of Treasurer: No report 44 45 Report of Attorney No report 46 47 The August 11, 1997 meeting of the IDA was adjourned at 9:09 p.m. 48 49 Respectfully submitted, oarr , / uNAppRovED _:• PROCEEDINGS OF THE MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY Special Meeting August 18, 1997 Mounds View City Hall ' 2401 Hwy. 10,Mounds View MN 55112 *********************************************************************************** CALL TO ORDER The Economic Development Authority was called to order by President McCarty on August 18, 1997 at 6.54 p.m. ROJ.L CALL } MEMBERS PRESENT: Duane McCarty,Julie Trude,Gary Quick,Roger Stigney,Roger Koopmeiners, R Director of Economic Development Cathy Bennett,and Clerk Administrator Chuck Whiting OTHERS PRESENT: None APPROVAL OF AGENDA: There was no Agenda for this meeting. 40 APPRAN No minutes OVpresentedLOFMI. UTE . CONSENT AGENDA: There were no Consent Agenda items for this meeting. - PUBLIC HEARINGS: , There were no Public Hearings scheduled for this meeting. .. ' . ADA BUSINESS: A. Motion made to take MSP Real Estate Proposal(Silver Lake Commons)request to purchase EDA owned land off the agenda for August 25,1997. - MOTION/SECOND:McCarty/Quick motioned to take MSP Real Estate proposal(Silver Lake Commons) request to purchase EDA owned land off the agenda for August 25, 1997. VOTE: 5 ayes 0 nays Motion Carried • REPORTS: ReR EDA Board Members. _ Report of President McCarty: No report. Report of Vice President Koppmeiners, No report. • Report of Secretary Trude: No report. Report of Commissioners: EDA Meeting#30 January 13, 1997 Page 2 Commissioner Quick: No report. Commissioner Stigney: No report. Reportpf Executive Director: No report. Report of Treasurer: No report. President.McCarty adjourned the meeting at 6:56 p.m. •. . Respectfully submitted, Cathy Bennett Director of Economic Development 1111 • Item No. 97-EDA-73 Staff Report No. EDA-97-82C • Meeting Date: August 25. 1997 Type of Business: EDAB WK: Work Session;PH:Public Hearing; CA:Consent Agenda;EDAB:EDA Business City of Mounds View Staff Report To: EDA President and Board Members From: Jennifer Bergman,Housing Inspector t` 1 02 Item Title/Subject: Consideration of of Resolution No. 97- A73 Approving and Authorizing the Execution of a Participation Agreement for the Redevelopment of 8265 Spring Lake Road Date of Report: August 22, 1997 Summary: Attached is Resolution No. 97-EDA73 (Attachment 1) and a copy of the Participation Agreement (Attachment 2) to enter into negotations for the sale of 8265 Spring Lake Road. At the August Work Session,the Economic Development Authority (EDA) directed staff to proceed with Loren Hansen of Loren Hansen Construction to the purchase the lot at 8265 Spring i Lake Road. Mr. Hansen, a licensed general contractor, is proposing to construct a two-story, three bedroom house with an estimated value of$140,000. Upon completion,he and his wife will occupy the home. The Housing Replacement Program requires any lot offered through this program be purchased by a buyer/builder team. Mr. Hansen represents both the builder and buyer. After the execution of the Participation Agreement,the next step is to complete the Contract for Private Development(see Attachment 3)which will detail the requirements for the development of the lot including the specifications of the home and the value of the home upon completion. Attached is a draft copy of the Contract for your review. Prior to the execution of the Contract for Private Development, staff will verify builder references, construction loan availability and end financing."After the Contract for Private Development has been completed, it will be presented to the EDA for consideration. Recommendation: Approval of the Participation Agreement authorizing the purchase of 8265 Spring Lake Road by Loren Hansen Construction. • ATTACHMENT 1 RESOLUTION NO. 97-EDA73 • CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION APPROVING AND AUTHORIZING THE EXECUTION OF A PARTICIPATION AGREEMENT FOR THE REDEVELOPMENT OF 8265 SPRING LAKE ROAD WHEREAS, the Mounds View Economic Development Authority established a Housing Replacement Program to remove houses which are in very poor condition,thereby, assisting in the elimination of the blighting influence of substandard homes; and, WHEREAS,the EDA purchased and demolished a substandard home located at 8265 Spring Lake Road; and, WHEREAS, the vacant lot at 8265 Spring Lake Road was advertised for sale by the EDA to an eligible builder/buyer team; and, WHEREAS, the EDA selected Loren Hansen Construction to purchase the lot and construct a home within the guidelines set forth in the Contract for Private Development; NOW THEREFORE, BE IT RESOLVED that the Economic Development Authority approves and authorizes entering into a Participation Agreement with Loren Hansen Construction for the purchase of 8265 Spring Lake Road. Adopted this 25 day of August, 1997. ATTEST: President (SEAL) Executive Director • ATTACHMENT 2 • MOUNDS VIEW HOUSING REPLACEMENT PROGRAM PARTICIPATION AGREEMENT THIS AGREEMENT is made and entered into this 26th day of August , 1997 , by and between the ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MOUNDS VIEW, a body corporate and politic under the laws of the State of Minnesota, having its principal office at 2401 Highway 10, Mounds View, MN 55112 (EDA) and Loren Hansen Construction , a Minnesota , having its principal office at 11073 Xylon Avenue North. Champlin. MN 55316 . (Developer) In consideration of the mutual covenants and obligations of the EDA and the Developer, the parties do hereby covenant and agree as follows: 1. The Developer agrees to pay$500 to the EDA for the rights to participate in redevelopment of a property owned by the EDA in accordance with the guidelines of the Mounds View EDA's Housing Replacement Program. 2. In return for$500, the receipt of which from the Developer is hereby acknowledged by the EDA, the EDA grants to the Developer the exclusive right to enter into a contract to redevelop the property located at 8265 Spring Lake Road and legally described as • The West 218 feet of the North 53 feet of Lot 34 and the South 27 feet of the West 218 feet of Lot 35, Auditor's Subdivision No. 89. Ramsey County. Minnesota in accordance with the Mounds View EDA's Housing Replacement Program. This right will expire on September 26 , 19 97 , unless,prior thereto, the Developer and the EDA have executed a Contract for Private Development with regard to the property. 3. The EDA agrees to negotiate in good faith with the Developer regarding redevelopment of the property but nothing contained in this Agreement shall require the EDA to enter into a Contract for Private Development if, at the EDA's sole discretion, it deems such not to be in its best interests. 4. The fee paid by the Developer to the EDA in connection with this Agreement for participation in the EDA's Housing Replacement Program is non-refundable and non- transferable to any other property or site owned by the EDA. DEVELOPER EDA By: By: Its President • Its By: Its Executive Director ATTACHMENT 3 PURCHASE AND REDEVELOPMENT AGREEMENT BY AND BETWEEN THE MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY AND • This document was drafted by: KENNEDY & GRAVEN, Chartered 470 Pillsbury Center Minneapolis, MN 55402 • SJR12as90 MC205-2 PURCHASE AND REDEVELOPMENT AGREEMENT • THIS AGREEMENT is made as of the day of 199 by and among the MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY, a public body politic and corporate under the Iaws of the State of Minnesota (the "Authority"), and , a Minnesota (the "Developer")_ WITNESSETH: WHEREAS, the Authority is the owner in fee simple of the parcel of land (the "Land") located in the City of Mounds View, County of Ramsey, State of Minnesota, and legally described as: [INSERT LEGAL DESCRIPTION] The Land and all rights, privileges, easements, tenements, hereditaments, and appurtenances belonging thereto, shall hereinafter be referred to as the "Property". WHEREAS, the Authority deems it to be in the public interest to facilitate and encourage redevelopment of the Property by private activity; and • WHEREAS, the Developer has " P proposed a development ( Development") within such Property which the Authority believes will promote and carry out the objectives of the Authority, will be in the vital best interests of the Authority, will promote the health, safety, morals, and welfare of its residents and will be in accord with the public purposes and provisions of the applicable state and local laws and requirements under which activities within the Authority have been undertaken and are being assisted; and WHEREAS, the Developer proposes to construct on the Property aft single family residential home. ' WHEREAS,the Developer is willing to purchase the Property and to develop the Property for and in accordance with this Agreement; and WHEREAS, the Authority desires to convey the Property to Developer and Developer is desirous of purchasing the same. NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby covenant and agree as follows: • SJR128590 M7205-2 AGREEMENT • 1.0. Definitions. In this Agreement, unless a different meaning clearly appears from the context: (a) "Agreement" means this Agreement, as the same may be from time to time modified, amended, or supplemented. (b) "Authority" means the Mounds View Economic Development Authority. (c) "Certificate of Completion" means the certification provided to the Developer, substantially in the form attached as Exhibit B to this Agreement, pursuant to Section 20 of this Agreement. (d) "City" means the City of Mounds View, Minnesota. (e) "Construction Plans" means the plans, specifications, drawings and related documents on the construction work to be performed on the Property which (a) shall be as detailed as the plans, specifications, drawings and related documents which are submitted to the appropriate building officials of the Authority, and (b) ¢hall include at least the followi • ) basement plans; (3) floor plan for each floor; (4) cross sections foundation each plan; and width); and (5) elevations (all sides). (f) "County" means the County of Ramsey, Minnesota. (g) "Developer" means , or its permitted successors and assigns. (h) "Event of Default" means an action by the Developer listed in Section 17 of this Agreement. (i) "Holder" means the owner of a Mortgage. (I) "Material"means any effect or change which significantly alters the intended use of the Property, or increases or decreases the costs of any individual item of the Minimum Improvements by more than (k) "Minimum Improvements"means the construction of a sq. ft. single family residential home. (1) "Mortgage" means any mortgage made by the Developer which is • secured, in whole or in part, with the Property and which is a permitted encumbrance pursuant to the provisions of this Agreement. (m) "Parcel" means the real property so described as above as the 1111 Property. (n) "Property" means the real property upon which the Minimum Improvements will be constructed, a legal description of which is set forth at Exhibit A of this Agreement. After construction of the Minimum Improvements, the term means the Property as improved. The Property consists of one Parcel. (o) "State" means the State of Minnesota. (p) "Termination Date"means the date on which the Developer receives a Certificate of Completion pursuant to the terms and conditions of this Agreement. (q) "Unavoidable Delays" means delays beyond the reasonable control of the party seeking to be excused as a result thereof which are the direct result of strikes, other labor troubles, prolonged adverse weather or acts of God, fire or other casualty to the Minimum Improvements, litigation commenced by third parties which, by injunction or other similar judicial action, directly results in delays, or acts of any federal, state or local governmental unit (other than the City or Authority in exercising their rights under this Agreement) which directly result in delays. Unavoidable Delays shall not include delays in the Developer's III obtaining of permits or governmental approvals necessary to enable construction of the Minimum Improvements by the dates such construction is required under Section 20 of this Agreement. 2.0. Premises To Be Purchased. Subject to compliance with the terms and conditions of this Agreement, Authority shall sell to Developer and Developer shah purchase from Authority the Property. 3.0. Purchase Price. The purchase price ("Purchase Price") of the Property shall be $ payable as follows: 3.I. The amount of S as earnest money (the "Earnest Money") to be deposited by Developer with Title Insurer within three (3) days after the date of this Agreement and held and disbursed under the terns of this Agreement 3.2. The amount of$ shall be payable in cash or certified check on the Date of Closing. 4.0. Title To Be Delivered. Authority agrees to convey to Developer marketable simple title to the Property subject only to the encumbrances approved by Developer in accordance with Section 5.2. Should Developer determine Authority's title to the Property to be unmarketable, Developer may make objections to Authority's title in accordance with Section 5.2. . Nothing contained in this Agreement shall be construed as a covenant requiring Authority to obtain marketable title to the Propertyifori it is determined that Authority does title. tY es not have marketable SJ'R12 590 M 205-2 3 5.0. Evidence Of Title. 5.1. Within fifteen(15)days after the execution of this Agreement by both parties or such other time period as may be specified in this Article, Authority shall at the discretion of the Authority: (a) Cause to be delivered to the Developer at the cost of Developer, an Abstract of Title for the Property (or a Registered Property Abstract if title to the Property is registered) certified to date to include proper searches covering bankruptcies, tax liens and state and federal court judgments and liens; or (b) Cause to be issued and delivered to Developer, at the cost of Developer, an ALTA Form 1970 commitment for an Owner's title insurance policy (the "Commitment") issued by the Title Insurer pursuant to which the Title Insurer agrees to issue to the Developer upon the recording of the documents of conveyance referred to herein an ALTA Form 1970 Owner's title insurance policy in the full amount of the Purchase Price, with standard exceptions for matters of survey, parties in possession (other than tenants under current written leases) and unfiled mechanic's or materialmen's liens deleted. The Commitment shall include proper searches covering bankruptcies, state and federal judgments and liens and levied and pending special assessments and shall be accompanied by copies of all recorded documents presently affecting the Property. • S.Z. Developer shall have fifteen (15) business days after receipt of all the title evidence discussed in Sections 5.1 above to render objections to title in writing to Authority and Authority shall have the greater of(i) the number of days remaining until the Date of Closing or (ii) thirty (30) days to have such objections removed or satisfied_ If Authority shall fail to have such objections removed within said time, the Developer may, at its sole election: (a) terminate this Agreement without any liability on its part; in which event the Earnest Money paid hereunder shall be promptly refunded in exchange for a quit claim deed to the Property from Developer; or (b) take title to the Property subject to such objections. Authority agrees to use its reasonable efforts to satisfy promptly at its sole cost any such objection& provided, however, that other than to cure liens. Authority shall not be obligated to spend a total of more than $ .00 to cure all such objections. 6.0. Control of Property. Until the Date of Closing, Authority shall have the full responsibility and the entire liability for any and all damages or injuries of any kind whatsoever to the Property, to any and all persons, whether employees or otherwise, and to any other property from and connected to the Property, except liability arising from the acts, omissions, intentional torts or negligence of Developer, its agents or employees. If, prior to the Date of Closing, alI or a material portion of the Property shall be the subject of an action in eminent domain or a proposed taking by a governmental authority (other than the City), whether temporary or permanent, Developer, at its sole election, shall have the right to terminate this Agreement without liability on its part, by so notifying Authority in writing and all heretofore paid to Authority shall then be promptly refunded to Developer in exchange for a sums t t claim deed for the Property. At its option. Developer may proceed to closing and in such event, SJR:28590 MMOS•2 4 the Authority shall either assign to Developer all rights to recover any awards for such action in ip eminent domain or proposed taking or pay to Developer any such awards or any proceeds already received.. Authority agrees to keep the Property continually insured during the term of this Agreement If, prior to the Date of Closing, all or a portion of the Property shall be damaged or destroyed by any casualty such that the damage or destruction will cost in excess of 55.000 to repair, Developer, at its sole discretion, shall have the right to terminate this Agreement without liability on its part, by so notifying Authority in writing and all sums heretofore paid by Developer shall be promptly refunded to Developer. At Developer's option, Developer may proceed to closing and Authority shall either assipt to Developer all rights under existing insurance policies to recover insurance proceeds for such damage or pay to Developer all insurance proceeds already recovered on account of such damage. 7.0. Representations by the Authority and Developer. The Authority and the Developer make the following representations as the basis for the undertaking on their part herein contained: 7.1. Representations of Authority. As an essential part of this Agreement and in order to induce Developer to enter into this Agreement and purchase the Property, Authority hereby represents and warrants to Developer. (a) The Authority has the power to enter into this Agreement and carry out its obligations hereunder.. . • (b) The Authority does not know of any "wells" (within the meaning of Minnesota Statutes_ Section 103I.005, Subd. 21) on the Property. This representation is intended to satisfy the requirements of Minnesota Statutes. Section 103I.235, Subd. 1(a). If wells are found to be on the Property prior to the Date of Closing, Authority shall promptly notify Developer of the presence of such wells. 7.2. Representations and Warranties by the Developer. The Developer represents and warrants that: (a) The Developer is a duly organized . in good standing under the laws of the State of Minnesota. is not in violation of any provisions of . bylaws, or the laws of the State, is duly authorized to transact business within the State, has power to enter into this Agreement, and has duly authorized the execution, delivery, and performance of this Agreement by proper action of its . (b) The Developer has received no notice or communication from any IocaI, State, or federal official that the activities of the Developer or the Authority on the Property may be or will be in violation of any environmental law or regulation (other than those notices or communications of which the Authority is • aware). The Developer is aware of no facts the existence of which would cause it to be in violation of or give any person a valid claim under any local, State, or federal environmental law, regulation, or review procedure. s..'a.23S90 MU20S-2 5 (c) Neither the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and conditions of this Agreement is prevented, limited by, or conflicts with or results in a breach of the terms, conditions, or provisions of any corporate or partnership restriction or any evidences of indebtedness, agreement or instrument of whatever nature to which the Developer is now a party or by which it is bound, or constitutes a default under any of the foregoing. (d) The Developer will construct, operate and maintain the Minimum Improvements in accordance with the terms of this Agreement and all local, state and federal laws and regulations (including, but not Iimited to, environmental, zoning, building code and public health laws and regulations). 7.3. The representations and warranties set forth in this section shall be continuing and shall be true and correct as of the Date of Closing with the same force and effect as if made at that time. All such representations and warranties shall survive closing and Shall not be merged in the delivery and execution of the deed or other instruments of conveyance called for in this Agreement. 7.4. Except for the representations and warranties of Authority expressly made herein, Developer is buying the Property on an as is," "where is," and "with all faults" basis, based upon its own investigation and judgment. 8.0. Review • vz of Documents. Concurrently with execution of this Agreement or within tem, days following the date hereof, and to the extent such documents are available to Authority, Authority shall deliver to Developer the following documents: existing (i) reports (whether in draft or final form) of any environmental inspections,audits or examinations of the Property; (ii) reports of all engineering tests, inspections and studies of the Property and (iii) reports of soil tests of the Property; all as Authority may have -or be able to obtain copies of without unreasonable expense (all such records, plans, permits and reports being hereafter referred to as the "Existing Tests"). 9.0. Conditions to Closing. The closing of the transaction contemplated by this Agreement and the obligation of the Authority to sell the Property and of the Developer to purchase the same shall be subject to the following conditions: 9.1. Authority Responsibilities: (a) Provide an updated abstract of title commitment, at the cost of Developer, for the Property; (b) Provide confirmation that sewer and water service is available to the Property. 9.2. Developer's Responsibilities: • 5.:712s590 MT.2O5-2 6 (a) Title: Developer may review and approve preliminary title reports and • surveys in accordance with this Agreement; (b) Developer shall indemnify Authority against any liability, cost or expense incurred by Authority as a result of Developer's actions, including but not limited to fines, court costs, reasonable attorneys' fees and remedial costs. Authority shall provide Developer and Developer's agents and representatives access to the Property, at reasonable times and in a reasonable manner, for purposes of completing such Investigation/Due Diligence Period requirements. Authority shall cooperate with the Developer's investigation of the Property, including Developer's ability to interview, at reasonable times and in a reasonable • manner,Authority or any of Authority's employees or to take samples of any soil, ground water or other materials provided the same does not unreasonably interfere with Authority's operations. (c) Developer must provide adequate evidence of financing for the purchase and construction of the Minimum Improvements on the Property_ 9.3. With respect to the above-described conditions, Developer shall give notice of its desire to terminate this Agreement for failure to fulfill any of said conditions on or before the Date of Closing or such earlier date as may be specified above. In the event no notice of termination is given within the specified time period with respect to any such 110 section hereof, such condition shall be deemed to be waived by Developer and Developer shall proceed to closing in accordance with the other terms and conditions hereof_ If this Agreement is terminated due to the failure of the conditions set forth in Sections 9.1, the Earnest Money shall be promptly returned to Developer in exchange for a quit claim deed for the Property and neither party shall have further rights and obligations hereunder_ If this Agreement is terminated due to the failure of the conditions set forth in Section 9.2, the Earnest Money shall be retained by the Authority and the Developer shall execute a quit claim deed for the Property. 10.0. Closing_ The closing shall take place on , 1997 (the "Date of Closing") or on such earlier date as Authority and Developer may mutually agree in writing. The closing shall take place at the office of Title Insurer or such other place as the Authority and Developer may reasonably determine. Possession of the Property shall be delivered on the Date of Closing. 11.0. Authority's Obligations At Closing. On or prior to the Date of Closing,.Authority shall: 11.I. Execute, acknowledge and deliver to the Developer a warranty deed_ with a right of reverter, to the Property conveying to the Developer marketable fee simple title to the Property, subject to the limitations contained in Sections 4.0 and 5.3 hereof, and all rights appurtenant thereto subject only to the encumbrances approved by Developer in • accordance with Section 5.3. SJ7I28590 11.1205-2 7 11.2. Deliver to Developer an affidavit of the Authority in recordable form identifying the Authority as the owner of the Property free and clear of all encumbrances • except the encumbrances approved by Developer in accordance with Section 5.3, that all work, labor, services and materials furnished to or in connection with the Property have been fully paid for so that no mechanic's, materialmen's, or similar lien may be filed against the Property. 11.3. In the event the warranty deed described in Section 11.1 does not contain the statement "The Seller certifies that the Seller does not know of any wells on the described real property", Authority shall execute and deliver to Developer a Well Disclosure Certificate as required in Minnesota Statutes Section 103I.235 indicating that all wells have been properly abandoned and sealed by a licensed well, contractor, all as required by the rules and regulations issued to Minnesota Statutes.Section 1031.501(a)(2). 11_4. Execute and deliver to Developer a Designation Agreement relating to the Property which designates the "reporting person" for purposes of completing Internal Revenue Form 1099S. 11.5. Deliver to Developer such other documents as may be required by this Agreement or applicable law. 11.6. Deliver to Developer evidence of Authority's authorization to complete this transaction. 11.7. Execute and deliver to Developer a closing statement consistent with this Agreement. 12.0. Developer's Obligations at Closing. At closing, and subject to the terms, conditions, and provisions hereof and the performance by Authority of its obligations as set forth above, the Developer shall: 12.1. Deliver to Authority any portion of the Purchase Price then due and payable by Developer's certified or cashier's check or equivalent. 12.2. Execute, and/or deliver to Authority such other documents as may be required by this Agreement or applicable law. 12.3_ Deliver to Authority evidence of Developer's authorization to complete this transaction. Developer hereby represents and warrants to Authority that the execution and performance of this Agreement by Developer has been duly authorized by all necessary action. 12.4. Execute and deliver to Authority a closing statement consistent with this Agreement. 110. Closing Costs. The following costs and expenses shall be paid as follows in connection with the closing: =128530 MU205-2 g 13.1. Developer shall pay the following costs in connection with the closing. • (a) All abstracting expenses, the cost of issuing the title commitment and the cost of copies of all additional title documents necessary for the examination of title. (b) The title insurance premium charged by the Title Insurer. (c) The cost of preparation of the warranty deed and other documents of conveyance. (d) Any filing fee to record the warranty deed and related documents. (e) State Deed Tax upon delivery of the warranty deed to the Developer. (f) Authority's attorneys' fees. (g) Developer's attorneys' fees. 14.0. Prorations. The following proration shall be made as of the Date of Closing and subsequent to the Date of Closing to the extent actual information is unavailable on the Date of 0 Closing: 14.1. All utilities furnished to the Property. 14.2. Real estate taxes and special assessments as hereinafter provided. 15.0. Taxes and Special Assessments. Authority shall pay the real estate taxes and special assessments relating to the Property which are due and payable in all years prior to the year of closing, and any and all deferred real estate taxes and all levied and pending special assessments at the closing of the sale . Real estate taxes payable in the year of closing shall be prorated to the Date of Closing. The parties agree and understand that, as of the date of this Agreement, there are no outstanding deferred real estate taxes or levied or pending special assessments. 16.0. Brokerage. Developer and Authority each represent and warrant to the other that they havenot engaged the services of any broker in connection with the purchase contemplated by this Agreement. Each party hereby agrees to indemnify and hold the other harmless of any claim made by a broker or sales agent or similar party for a commission due or alleged to be due on this transaction. 17.0 Default. The following default provisions govern this Agreement • 17.1. Events of Default Defined. The following shall be "Events of Default" under this Agreement and the term "Event of Defaults' shall mean, whenever it is used in this Agreement (unless the context otherwise provides), any failure by any party to =123590 Mvsos.2 9 observe or perform any other covenant, condition, obligation or agreement on its part to be observed or performed hereunder, but only if such failure has not been cured within thirty days after receipt by the defaulting party of written notice of such failure or, if the failure is by its nature incurable within thirty days, the defaulting party does not provide assurances reasonably satisfactory to the non-defaulting party within such thirty-day period that the failure will be cured and will be cured as soon as reasonably possible. Subject to the foregoing notice and cure periods,nothing in this Section shall limit the Authority's right to exercise any remedy to which it is entitled under any other provision of this Agreement. 17.2. Remedies on Default. Whenever any Event of' Default referred to in Paragraph 17.1 of this Agreement occurs, the non-defaulting party may: (a) Suspend its performance under this Agreement until it receives assurances that the defaulting party will cure its default and continue its performance under this Agreement_ (b) Cancel and rescind or terminate this Agreement. In the event that Authority should fail to consummate the transaction contemplated by this Agreement for any reason except for Developer's default or the failure of Developer to satisfy any conditions to Authority's obligation hereunder, and Developer elects to cancel and terminate this Agreement in the manner provided by applicable law and be relieved of its obligations hereunder, Developer shall be immediately entitled to the return of the Earnest Money heretofore paid in exchange for a quit claim deed for the Property. In the event that Developer shall fail to consummate the transaction contemplated herein for any reason, except the default by Authority or the failure of Authority to satisfy any of the conditions to the Developer's obligations set forth herein,and the Authority elects to cancel and terminate this Agreement in the manner provided by applicable law and be relieved of its obligations hereunder, the Authority shall be entitled to retain the Earnest Money as liquidated damages. (c) In the case of an Event of Default by the Developer, the Authority may demand reimbursement by the Developer to the Authority in the amount of any costs paid by the Authority pursuant to this Agreement. (d) Take whatever action, including legal, equitable, or adminis native action.which may appear necessary or desirable to collect any payments due under this Agreement, or to enforce performance and observance of any obligation, agreement or covenant under this Agreement (e) Enforce the specific performance of this Agreement, which action must be commenced within one (I) year of the date of failure of a party to consummate the transactions contemplated herein. • & 128590 :2L 10 205-2 17.3_ Revesting Title in Authority Upon Happening of Event Subsequent to . Conveyance to Developer. In the event that, subsequent to conveyance of the Property to the Developer and prior to the issuance of the Certificate of Completion: (a) subject to Unavoidable Delays, the Developer fails to carry out its obligations with respect to the construction of the Minimum Improvements (including the nature and the date for the completion thereof), or abandons or substantially suspends construction work, and any such failure, abandonment, or suspension shall not be cured, ended, or remedied within thirty (30) days after written demand from the Authority to the Developer to do so; or (b) subject to Unavoidable Delays the Developer fails to cure any default under this Agreement within 30 days after receipt of notice of Event of Default • Then the Authority shall have the right to re-enter and take possession of the Property and to terminate and revest in the Authority the estate conveyed pursuant to the Deed to the Developer, it being the intent of this provision, together with other provisions of the Agreement, that the conveyance of the Property to the Developer shall be made upon, and that any instrument conveying title from the Authority to the Developer of the Property shall contain a condition subsequent to the effect that in the event of any default on the part of the • Developer and failure on the part of the Developer to remedy, end, or abrogate such default within the period and in the manner stated in such subdivisions, the Authority at its option may declare a termination in favor of the Authority of the title, and of all the rights and interests in and to the Property conveyed to the Developer,and that such title and all rights and interests of the Developer,and any assigns or successors in interest to and in the Property, shall revert to the Authority. 17.4. Resale of Reacquired Property: Disposition of Proceeds. Upon the revesting in the Authority of title to and/or possession of the Property as provided in Section 17.3, the Authority shall. pursuant to its responsibilities under law, use its best efforts to sell the Property or part thereof as soon and in such manner as the Authority shall find feasible and consistent with the objectives of such law and of the Development Plan to a qualified and responsible party or parties (as determined by the Authority) who will assume the obligation of making or completing the Minimum Improvements or such other improvements in their stead as shall be satisfactory to the Authority and in accordance with the uses specified for the Property. Upon such resale of the Property, the proceeds thereof shall be applied: (a) First, to reimburse the Authority for all costs and expenses incurred by the Authority, including but not Iimited to salaries of personnel, in connection • with the recapture, management, and resale of the Property or part thereof (but less any income derived by the Authority from the property or part thereof in connection with such management); all taxes, assessments, and water and sewer charges with respect to the Property (or, in the event the Property is exempt from SJR128S90 Mr.72.05-2 11 taxation or assessment or such charge during the period of ownership thereof by the Authority, an amount, if paid, equal to such taxes, assessments, or charges (as 1111 determined by the Authority assessing official) as would have been payable if the Property were not so exempt); any payments made or necessary to be made to discharge any encumbrances or liens existing on the Property or part thereof at the time of revesting of title thereto in the Authority or to discharge or prevent from attaching or being made any subsequent encumbrances or liens due to obligations, defaults or acts of the Developer, its successors or transferees; any expenditures made or obligations incurred with respect to the making or completion of the Minimum Improvements or any part thereof on the Property, financial assistance made by the Authority to the Developer(less any portion thereof previously repaid by the Developer); and any amounts otherwise owing the Authority by the Developer and its successor or transferee; and (b) Any balance remaining after such reimbursements shall,be returned to the Developer. 17.5. No Remedy Exclusive. No remedy herein conferred upon or reserved to the any party in this Agreement is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver • thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. In order to entitle the Authority to exercise any remedy reserved to it, it shall not be necessary to give notice, other than such notice as may be required in this Section. 17.6. No Additional Waiver Implied by One Waiver. In the event any agreement contained in this Agreement should be breached by any party and thereafter waived by another party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other concurrent, previous or subsequent breach hereunder_ 18.0. Access to Property and Inspection. Any time and from time to time prior to the Date of Closing, Developer, and person or persons selected by Developer shall be permitted access to the Property for the purpose of conducting such studies and investigations of the Property as Developer deems appropriate, which studies and investigations shall be conducted at Developer's sole expense and pursuant to any other terms and conditions of this Agreement. Developer agrees to indemnify Authority against any liability, cost or expense incurred by Authority as a result of DeveIoper's actions, including but not limited to fines, court costs, reasonable attorneys' fees and remedial costs_ Such studies may include without limitation, physically inspecting the Property and reviewing Authority's records concerning the Property which records shall be made reasonably available to Developer. • S.7R128590 :411205-2 12 • 19.0. Miscellaneous. The following general provisions govern this Agreement 19.1. Time is of the Essence. The Date of Closing is of the absolute essence. In the event this transaction does not close on the Date of Closing because the Authority is unable to perform as required by this Agreement, the Agreement shall be null and void and all Earnest Money shall be immediately refunded to Developer. In the event this transaction does not close on the Date of Closing because the Developer is unable to perform as required by this Agreement, this Agreement shall be null and void and all Earnest Money shall be delivered to the Authority as liquidated damages. 19.2. Governing Law. This Agreement is made and executed under and in all respects is to be governed and construed under the laws of the State of Minnesota. 19.3. Notices and Demands. Except as otherwise expressly provided in this Agreement, a notice, demand, or other communication under this Agreement by either party to the other shall be sufficiently given or delivered if it is dispatched by registered or certified mail, postage prepaid,return receipt requested, or delivered personally to the parties as follows: Authority: The Mounds View Economic Development Authority 2401 Highway 10 • Mounds View, MN 55112-1499 Developer: or at such other address with respect to either such party as that parry may, from time to time, designate in writing and forward to the other as provided in this Section. 19.4. Constriction. The captions and headings of the various sections of this Agreement are for convenience only and are not to be construed as defining or as limiting in any way the scope or intent of the provisions hereof. Wherever the context requires or permits, the singular shall include the plural, the plural shall include singular, and the, masculine, feminine and neuter shall be freely interchangeable. 19.5. Assignability. This Agreement and the rights set out herein may be assigned by Developer upon notice to Authority,provided.,however,any assignment shall not release Developer from any liability under this Agreement. 19.6. Entire Azeement. This Agreement sets forth the entire understanding of the parties and may be amended. modified or terminated only by an instrument signed by • the parties. MU203-2 13 19.7. Counterparts. For the convenience of the parties, any number of counterparts hereof may be executed and each such executed counterpart shall be deemed • an original, but all such counterparts together shall constitute one in the same Agreement. 19.8. Binding Effect_ This Agreement (including without limitation, the representations and warranties set forth in Section 7 hereof) shall inure to the benefit of and bind the respective heirs, executors, administrators and assigns of Developer and Authority, including without limitation any successor in interest to either Developer or Authority with respect to this Agreement or the Property or both. 19.9. Conflict of Interests; Authority Representatives Not Individually Liable. The Authority and the Developer, to the best of their respective knowledge,represent and agree that no member, official, or employee of the Authority shall have any personal interest, direct or indirect, in this Agreement, nor shall any such member, official, or employee participate in any decision relating to this Agreement which affects his or her personal interests or the interests of any corporation, partnership, or association in which he or she is directly or indirectly interested. No member, official, or employee of the Authority shall be personally liable to the Developer, or any successor in interest, in the event of any default or breach by the Authority, or for any amount which may become due to the Developer or successor or on any obligations under the terms of this Agreement. 19.10. Equal Ernolovment Oroortunity. The Developer, for itself and its successors and assigns,agrees that during the construction of the Minimum Improvements provided for in this Agreement it will comply with all applicable federal, State, and local equal employment and non-discrimination laws and regulations. 19.11. Restrictions on Use. The Developer agrees that prior to the Termination Date, the Developer, and its successors and assigns: (a) shall not discriminate upon the basis of race, color, creed, sex, national origin, or any other classification prohibited by law in the sale, lease, rental, or use or occupancy of the Property or any improvements erected or to be erected thereon, or any part thereof; and (b) shall otherwise comply with the restrictions on use set forth in this Agreement. 19.I2. Provisions Not Merged With Deeds. None of the provisions of this Agreement are intended to or shall be merged by reason of any deed transferring any interest in the Property and any such deed shall not be deemed to affect or impair the provisions and covenants of this Agreement. 19.13. Recording. The Authority may record this Agreement and any amendments thereto with the Ramsey County recorder. The Developer shall pay all costs for recording. 19.14. Attorney Fees. Whenever any Event of Default occurs and if the Authority shall employ attorneys or incur other expenses for the collection of payments due or to become due, or for the enforcement of performance or observance of any obligation or agreement on the part of the Developer under this Agreement, the Developer agrees that SJRL29590 MU2Q5-z 14 Sitshall, within ten days of written demand by the Authority, pay to the Authority the reasonable fees of such attorneys and such other expenses so incurred by the Authority_ 19.15 Housing Design and Site Criteria. The Housing Design and Site Criteria information attached hereto as Exhibit C, is incorporated herein by reference and made a part of this Agreement as if set forth fully herein. The Housing Design and Site Criteria general policy and requirements are binding upon the Developer and shall be obligations upon the Developer unless inconsistent with the provisions of this Agreement. 20.0 Construction of Minimum Improvements. 20.1. Construction of Minimum Improvements_ (a) The Developer agrees that it will construct the Minimum Improvements on the Property in accordance with the approved Construction Plans, and at all times prior to the Termination Date will operate and maintain, preserve, and keep the Minimum Improvements, or cause the Minimum Improvements to be maintained, preserved, and kept, with the appurtenances and every part and parcel thereof, in good repair and condition. The Authority shall not have any obligation to operate or maintain the Minimum Improvements. (b) The Developer will construct the Minimum Improvements in accordance with all local, State, and federal energy-conservation laws or regulations. 4110 • (c) The Developer will obtain, in a timely manner, all required permits, licenses, and approvals, and will meet, in a timely manner, all requirements of all applicable local, State, and federal laws and regulations which must be obtained or met before the Minimum Improvements may be lawfully constructed, including, without limitation, the requirements of any necessary special use permits. (d) The Developer shall promptly advise the Authority in writing of all litigation or claims affecting any part of the Minimum Improvements and all written complaints and charges made by any governmental authority materially affecting the Minimum Improvements or materially affecting Developer or its business which may delay or require changes in construction of the Minimum Improvements. (e) The Developer agrees that the Minimum Market Value for the Property with the Minimum Improvements shall be at least S . The parties agree that this value for the Minimum Improvements shall be established by the assessed value of the Property as of the Termination Date as defined in the Agreement. The Minimum Market Value herein established shall be of no further force and effect and shall end on the Termination Date as defined in the Agreement. 20.2. Construction Plans. (a) Before beginningconstruction of the Minimum Improvements, the Developer shall submit to the Authority Construction Plans. The Construction Plans shall provide for the construction of the Minimum Improvements, as applicable, and shall be in conformity with this Agreement and all applicable State and � PP local laws and regulations. The Authority will approve the Construction Plans in writing if: (i) the Construction Plans conform to the terms and conditions of this Agreement; (ii) s.-tuzssso 1- M17205-2 the Construction Plans conform to all applicable federal, State and local laws, ordinances, rules and regulations; (iii) the Construction Plans are adequate to provide for construction of the Minimum Improvements; and (iv) no Event of Default has occurred. Approval may be based upon a review by the City's building official of the Construction Plans. No approval by the Authority or City shall relieve the Developer of the obligation to comply with the terms of this Agreement, applicable federal, State and local laws, ordinances, rules and regulations,or to construct the Minimum Improvements in accordance therewith. No approval by the Authority shall constitute a waiver of an Event of Default. If approval of the Construction Plans is requested by the Developer in writing at the time of submission, such Construction Plans shall be deemed approved unless rejected in writing by the Authority, in whole or in part. Such rejections shall set forth in detail the reasons therefore, and shall be made within 30 days after the date of their receipt by the Authority. If the Authority rejects any Construction Plans in whole or in part, the Developer shall submit new or corrected Construction Plans within 30 days after written notification to the Developer of the rejection. The provisions of this Section 20.2 relating to approval, rejection and resubmission of corrected Construction Plans shall continue to apply until the Construction Plans have been approved by the Authority_ The Authority's approval shall not be unreasonably withheld. Said approval shall constitute a conclusive determination that the Construction Plans (and the Minimum Improvements constructed in accordance with said plans) comply to the Authority's satisfaction with the provisions of this Agreement relating thereto. (b) If the Developer desires to make any Material change in the Construction Plans after their approval by the Authority, the Developer shall submit the proposed change to the Authority for its approval. If the Construction Plans, as modified by the proposed change,conform to the requirements of this Section 20.2 of this Agreement with respect to such previously approved Construction Plans, the Authority shall approve the proposed change and notify the Developer in writing of its approval. Such change in the Construction Plans ehali in any event, be deemed approved by the Authority unless rejected, in whole or in part, by written notice by the Authority to the Developer, setting forth in detail the reasons therefor. Such rejection shall be made within ten (10) days after receipt of the notice of such change. The Authority's approval of any such change in the Construction Plans will not be unreasonably withheld. (c) The terms of this Section 20.2 shall apply only to the Construction Plans as herein defined. Any site plan approval, variances, and any other City permit or approval required for construction of the Minimum Improvements shall be applied for and processed in accordance with normal City procedures. 20.3. Commencement and Completion of Construction. Subject to Unavoidable Delays,the Developer shall commence construction of the Minimum Improvements within days after the date of this Agreement. Subject to Unavoidable Delays, the Developer shall substantially complete the construction of the Minimum Improvements by . All work with respect to the Minimum Improvements to be constructed • or provided by the Developer on the Property shall be in conformity with the Construction Plans as submitted by the Developer and approved by the Authority. =.2.8590 :t.7205-2 16 • The Developer agrees for itself, its successors and assigns, and every successor in interest to the Property, or any part thereof, that the Developer, and such successors and assigns, shall promptly begin and diligently prosecute to completion the development of the Property through the construction of the Minimum Improvements thereon, and that such construction shall in any event be commenced and completed within the period specified in this Section 20.3 of this Agreement Subsequent to the Developer's acquisition of title to the Property, or any part thereof, and until construction of the Minimum Improvements has been completed, the Developer shall make reports, in such detail and at such times as may reasonably be requested by the Authority, as to the actual progress of the Developer with respect to such construction. 20.4. Certificate of Completion. (a) Promptly after substantial completion of the Minimum Improvements in accordance with those provisions of this.Agreement relating solely to the obligations of the Developer to construct the Minimum Improvements (including the dates for beginning and completion thereof), the Authority will furnish the Developer with a Certificate of Completion substantially in the form shown at Exhibit B. Such certification by the Authority shall be a conclusive determination of satisfaction and termination of the agreements and covenants in this Agreement with respect to the obligations of the Developer, and its successors and assigns, to construct the Minimum Improvements, as applicable, and the dates for the bei ning and completion thereof. Such certification and such determination shall not constitute evidence of compliance with 1110 or satisfaction of any obligation of the Developer to any Holder of a Mortgage, or any insurer of a Mortgage, securing money loaned to finance the Minimum Improvements, or any part thereof. (b) If the Authority shall refuse or fail to provide any certification in accordance with the provisions of this Section 20.4 of this Agreement,the Authority shall, within thirty (30) days after written request by the Developer, provide the Developer with a written statement, indicating in adequate detail in what respects the Developer has failed to complete the Minimum Improvements in accordance with the provisions of this Agreement, or is otherwise in default, and what measures or acts it will be necessary, in the opinion of the Authority, for the Developer to take or perform in order to obtain such certification. (c) The construction of the Minimum Improvements shall be deemed to be substantially completed when the Minimum Improvements have been approved for use by the responsible inspecting authority. 20.5. Reconstruction of Minimum Improvements. If the Minimum Improvements are damaged or destroyed before the Termination Date, the Developer agrees, for itself and its successors and assigns, to reconstruct the Minimum Improvements so that the Minimum Improvements and the Property have a value equal to the Minimum Market Value as set forth in and required by Section 20.1(e) of this Agreement The Minimum S Improvements chill be reconstructed in accordance with the Construction Plans, or with modifications approved by the Authority in accordance with Section 20.2 of this Agreement. swa12S5 O xvzcs.a 17 20.6. Property Taxes: Special Assessments. After closing on the Propertythe Developer shall P pay all real estate taxes and special assessments on the Minimum Improvements and the Property as they become due. The Developer shall not cause the Property to be removed from the public tax rolls or to become exempt from assessment for general real estate taxes by reason of any conveyance,lease,abatement, or other action prior to the Termination Date. 20.7. Survival of Agreement. The terms of this Section 20 shall survive closing. • • SCR.1.18590 :A[72.05-2 18 The parties hereto have executed this Agreement as of the day and year set forth below. • DEVELOPER: Dated By Its Dated By Its AUTHORITY: THE MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY Dated By • Its President Dated By Its Executive Director • SJR22s590 MC2OS-2 19 EXHIBIT A • Legal Description of Property The Northwesterly 224 feet of the Southeasterly 249 feet of Lot 1, Block 1, Mounds View Industrial Addition, according to the plat thereof, Ramsey County, Minnesota • • STd128590 mo205-2 A-1 EXHIBIT B • to PURCHASE AND REDEVELOPMENT AGREEMENT FORM OF CERTIFICATE OF COMPLETION The undersigned certifies that except as may be specified below, has fully and completely complied with its obligations under Paragraph 20 of that document entitled "Purchase and Redevelopment Agreement", dated between the Mounds View Economic Development Authority and with respect to construction of the Minimum Improvements on the Property legally described therein, in accordance with the approved Construction Plans and is released and forever discharged from its obligations to construct under such above-referenced Paragraph. Dated: MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY By Its President • By Its Executive Director STATE OF MINNESOTA ) ) ss COUNTY OF RAMSEY ) The foregoing instrument was acknowledged before me this day of 1997, by and , the P e ident and Executive Director respectively, of The Mounds View Economic Development Authority, a public body corporate and politic, under the laws of the State of Minnesota on behalf of the public body corporate and politic. Notary Public This document drafted by: KENNEDY & GRAVEN, CHARTERED 470 Pillsbury Center Minneapolis, MN 5 402 (612) 337-9300 .SC 228590 MU205-2 B-1 .-7 7fl4 is♦ i — --. . .-.. .— EXHIBIT C • to PURCHASE AND REDEVELOPMENT AGREEMENT HOUSING DEVELOPMENT AND SITE CRITERIA S S.-R:2SS 50 ME7205-2 B_2 Item No. 7B Staff Report No. EDA-97-83C Meeting Date . 8-25-97 • Type of Business EDAB WK: Work Session;PH:Public Hearing; CA:Consent Agenda;EDAB:EDA Business Mounds View Economic Development Authority Staff Report To: Mounds View Economic Development Authority From: Cathy Bennett, Director of Economic Development Item Title/Subject: Consideration of Resolution No. 97-EDA67 Approving and Authorizing the Execution of a Development Assistance Agreement with The Everest Group for Building N Date of Report: August 22, 1997 Overview: At the May 12, 1997 EDA meeting specific terms for a development assistance agreement were presented to the EDA and a motion was made to direct staff to prepared a development assistance agreement accepting the terms as presented. Attached is the final development assistance • agreement which includes the terms discussed at the May meeting with the exception of one item. Tim Nelson of the Everest Group is requesting that the EDA extend the term required to complete the 103,000 square foot Building N in the Mounds View Business Park from 1999 to 2002. This would give Everest five years to complete the building instead of two years as previously discussed. Staff is willing to recommend this change for the following reasons. • The longer Everest waits to complete construction the less increment will be available for reimbursement as the term of the agreement begins upon execution. On the flip side though the City does not collect increased increment until construction in complete. • The City does not incur additional risk by extending the term since it is a pay-as-you-go agreement. • An agreement is reached now with the understanding that the terms are nonnegotiable at a later date. Everest is concerned that if they are unable to secure a tenant and complete the construction of the building by the end of 1999 that they would have to begin negotiations again with potentially a new Council and/or staff. History: In 1993, Everest requested$900,000 of TIF assistance over 13 years at 9% interest with a 90\10 split. • This was in response to a company that was willing to lease 70 percent of the facility from Everest. There was no information provided to the EDA with regards to the proposed tenant. At that time Everest was willing to reduce the duration of the agreement from 13 to 10 years. City of Mounds View Staff Report August 21, 1997 Page 2 • The EDA decided to offer Everest$450,192 of assistance for 5-7 years at 7% interest with an 85\15 split. Everest was willing to accept a total of$450,000 for 11-12 years at 8.5% interest. There was no agreement on the negotiations and therefore the project did not proceed in 1993. Everest informed the City that due to the lack of TIF the proposed tenant had elected to locate elsewhere. In 1994, discussions were open again for the development of Building N due to Everest's negotiations with a"mystery company". The proposal,which was done by Casserly, Molzahn&Associates, requested$808,441 for 9 years at 7% interest at an 85\15 split. Through these negotiations,the EDA made informal decisions with regards to parameters for use of TIF. Those parameters included the EDA's desire to use TIF for an owner occupied building verses a leased facility. The EDA did note that they would consider a long term leased project(for at least the duration of the TIF agreement) if the EDA had prior knowledge of the company prior to signing an agreement. Again,this proposal did not proceed as the"mystery company"never materialized. Again in 1995, the Everest Group came to the EDA to reconsider the decision to have an owner occupied building prior to signing a development agreement. They were ready to build the building but did not have a tenant at this time. The EDA held firm on their decision to wait until a strong tenant or owner was identified prior to entering into a development assistance agreement. In July of 1996, Everest brought forward a request for$1.3 million pay-as-you-go agreement over 15 tax increment years with an interest rate of 7%and a 90/10 split. This proposal equals approximately $4.28 per sq.ft. of assistance. After reviewing the proposal with Chuck and bond attorney Jim O'Meara an offer was made for an 8-year pay-as-you-go agreement at 7% interest which equaled approximately $2.75 per sq. ft. of assistance plus the willingness to negotiation on a low interest loan with the company that was tied to the agreement rather than a grant which was originally requested by Everest. Our proposal was not accepted by Everest. They said it was not economically feasible due to the competition and amount of dollars that were invested into the land. After analyzing financial information and through much discussion regarding this project it was decided that a 15 year pay-as-you-go agreement did not pose additional risk upon the City but allows for an equitable time frame to pay back the developer for costs incurred on the project. The most recent proposal included a 15 year, 90/10 split pay-as-you-go assistance package which equaled $1.1 million present value assistance to Everest. At that time staff felt that to make this project work this was a proposal that they could support and over the long run is a good development for the City. Therefore, staff was directed to put together the specifics of the development agreement. What followed was discussions back and forth on how the development assistance agreement would be structured. Specifically the issues included the substantiation reimbursable costs and putting a cap on the amount of increment collected. The final terms were not agreed upon by both parties therefore the negotiations once again failed. • City of Mounds View Staff Report August 21, 1997 410 Page 3 Development Assistance Agreement: With the most recent negotiations the final development assistance agreement for building N includes the following terms. 1. The assistance package would provide The Everest Group with a maximum 15 year pay as you go note at 90/10 split. This would reimburse for the fair market value of the land and TIF eligible public and site improvements to be estimated and attached to the agreement as Exhibit D and E. 2. Similar to the Zep manufacturing project the agreement would state that the developer will provide satisfactory written substantiation of the amount and nature of the Development Costs for which reimbursement is sought and that only Available Tax Increment shall be used to pay the amounts otherwise due on the EDA Note. Therefore, if the increment projected is not collected, the EDA is not obligated to pay the developer more than 90%of what is available for the 15 increment years up to a maximum of$1.2 million. 3. The land value of$615,000 is based upon an appraisal commissioned by the EDA and • paid by Everest. 4. The increment will be pledged, as previously agreed to, subject to the EDA's district debt service or prior bonds. 5. Everest's development and contractor profit is not covered as a reimbursable expense. 6. As currently drafted Everest will have until Dec. 31, 1999 (two years)to construct the project with pay-as-you-go provisions applicable only after construction is complete. Everest is requesting that this date be extended to Dec. 31,2002 (five years). Staff would be willing to recommend acceptance of this provision as noted above. This would need to be acceptable to the EDA as it is a significant change from the terms agreed upon in May. An amendment to the attached resolution would need to be made to accept Everest's request and is reflected in Resolution No. 97-EDA67 Form B. In either case, the final payment date can not exceed February 1, 2014. 7. Assessable public improvements can be done by the City and assessed against the property if and when the City wished to complete improvements to Program Avenue. 8. No provision was made that would expose risk to the EDA due to changes at the State legislature by the reduction of the commercial/industrial tax classification rates. The • increment would incorporate any reduction in the classification rate which may reduce the amount reimbursed to Everest. City of Mounds View Staff Report August 21, 1997 Page 4 • 9. The EDA would agree to give Everest the right to transfer the property and/or assign the agreement to a third party,prior to the execution of a certificate of completion, subject to a reasonable creditworthiness standards to be applied to the transferee and the transferee's assumption of the Development Assistance Agreement. 10. An interest rate of 8%would be applied to the present value of$1.2 million and would begin accruing upon the signature of the certificate of completion rather than upon execution of the agreement. Conclusions: The draft development assistance agreement includes the provisions outlined above with the exception of two terms. If the EDA agrees to extend the date of completion from December 31, 1999 to December 31, 2002 than I have prepared an alternate resolution that includes this amendment. In addition, I have added a condition in both forms of the resolution that states that the execution of the development agreement can not be made until the Developer and the City successfully negotiate a mutually acceptable Park Dedication Fee. TIF attorney Jim O'Meara will be present at the meeting to answer any questions the EDA may • have. If you come across any questions prior to the meeting I can direct them to Mr. O'Meara on Monday prior to the meeting so that staff can be prepared. Attachments: Draft Development Assistance Agreement Resolution No. 97-EDA67 (Form A& B) • 6126360183 EVEREST GROUP 097 P02 AUG 19 '97 16:24 • _ - EVEREST DEVELOPMENT, LTD. A MrMRFR OF THE tVtRtS E CROUP,LTD. August 19, 1997 Cathy Bennett Director of Economic Development CITY OF MOUNDS VIEW 2401 Highway 10 Mounds View, MN 55112-1499 Re: Building "N" Development Assistance Agreement Dear Cathy: I am writing to confirm that the Development Assistance Agreement revised draft dated 8-14-97 as prepared by City bond counsel, Jim O'Meara, for the noted project is acceptable to The Everest Group, Ltd., as developer, with the substitution of the date "December 31, 2002," in Section 3.4 (c). In addition, Exhibits D and E were not included in our black-lined copy of the 8-14-97 draft and need to be attached to the final execution draft. We appreciate your recommendation supporting the revision described above, and we look forward to review of the Development Assistance Agreement by the EDA at its meeting next Monday, August 25. We would appreciate it if you would fax us a copy of the EDA meeting schedule prior to the meeting. Thank you for your continuing assistance in this matter. Sincerely, EVEREST DEVELOPMENT, LTD. • / Timothy J. Nelson TJ N:Ic 2665 long Lake Road Suite 330 • Roseville. MN 55113 FORM A RESOLUTION NO. 97-EDA67 • CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION APPROVING AND AUTHORIZING THE EXECUTION OF A DEVELOPMENT ASSISTANCE AGREEMENT WITH THE EVEREST GROUP, LTD., REGARDING THE BUILDING"N"PROJECT It is hereby resolved by the Board of Commissioners (the "Board") of the Mounds View Economic Development Authority(the "Authority") as follows: 1. Recitals. (a) Pursuant to Minnesota Statues, Sections 469.124 to 469.134 and 469.090 to 469.108 (collectively, the "Act") (b) Pursuant to and in furtherance of the objectives of the Act, the Authority has undertaken a program to promote development and redevelopment of certain land within the City of Mounds View and in connection is engaged in carrying out • the Mounds View Economic Development Project(the "Project) within the City. (c) There has been approved pursuant to the Act a Project Plan for the Project. (d) The redevelopment and development of property within the Project by private developers are stated objectives of the Project Plan (e) In order to achieve the objectives of the Project Plan, the Authority has determined to provide substantial aid and assistance through the financing of certain of the public costs of development (f) The Everest Group, Ltd. (the "Developer"), has presented the Authority with a proposal for the completion of certain improvements within the Project, consisting generally of the construction of an approximately 103,000 square foot building, and a certain Development Assistance Agreement between the Authority and the Developer (the "Development Agreement") stating the terms and conditions thereof and the Authority's responsibilities respecting the assistance thereof has been presented to the Board for its consideration. 2. The Board hereby determines that the Authority's execution and performance of the Development Agreement would be in furtherance of the Project Plan and hereby approves the • Development Agreement, substantially in the form presented to the Board and hereby authorizes the officers of the Authority in their discretion and at such time, if any, as they may deem • RESOLUTION NO. 97-EDA67 PAGE TWO OF TWO appropriate to execute the same on behalf of the Authority and with any other such additions and modifications as those officers may deem desirable or necessary as evidenced by their execution thereof; provided that the Authority's execution and delivery of the Development Agreement shall be conditioned on the fact that the Developer and City shall first successfully negotiate a mutually acceptable Park Dedication Fee. 3. Upon execution and delivery of the Development Assistance Agreement,the officers and employees of the Authority (including members of the City staff, acting in their capacity as staff to the Authority as well) are hereby authorized and directed to take or cause to be taken such actions as may be appropriate or necessary on behalf of the Authority to implement the Development Assistance Agreement, including without limitation issuance of the EDA Note and execution of the Certificate of Completion under the Development Assistance Agreement. 4. The Board hereby determines that the execution and performance of the Development Assistance Agreement will help realize the public purposes of the Act and are in furtherance of the Project. Adopted by the Board of Commissioners of the Mounds View Economic Development • Authority on August 25, 1997. BY: Duane McCarty, President ATTEST: Cathy Bennett, Executive Director • FORM B RESOLUTION NO. 97-EDA67 • CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION APPROVING AND AUTHORIZING THE EXECUTION OF A DEVELOPMENT ASSISTANCE AGREEMENT WITH THE EVEREST GROUP, LTD., REGARDING THE BUILDING"N" PROJECT It is hereby resolved by the Board of Commissioners (the "Board") of the Mounds View Economic Development Authority (the"Authority") as follows: 1. Recitals. (a) The Authority has the powers provided in Minnesota Statues, Sections 469.124 to 469.134 and 469.090 to 469.108 (collectively,the "Act") (b) Pursuant to and in furtherance of the objectives of the Act, the Authority has undertaken a program to promote development and redevelopment of certain land within the City of Mounds View and in connection is engaged in carrying out • the Mounds View Economic Development Project(the"Project) within the City. (c) There has been approved pursuant to the Act a Project Plan for the Project. (d) The redevelopment and development of property within the Project by private developers are stated objectives of the Project Plan (e) In order to achieve the objectives of the Project Plan, the Authority has determined to provide substantial aid and assistance through the financing of certain of the public costs of development (f) The Everest Group, Ltd. (the"Developer"), has presented the Authority with a proposal for the completion of certain improvements within the Project, consisting generally of the construction of an approximately 103,000 square foot building, and a certain Development Assistance Agreement between the Authority and the Developer (the "Development Agreement") stating the terms and conditions thereof and the Authority's responsibilities respecting the assistance thereof has been presented to the Board for its consideration. 2. The Board hereby determines that the Authority's execution and performance of the Development Agreement would be in furtherance of the Project Plan and hereby approves the 1111 Development Agreement, substantially in the form presented to the Board and hereby authorizes the officers of the Authority in their discretion and at such time, if any, as they may deem , • RESOLUTION NO. 97-EDA67 PAGE TWO OF TWO appropriate to execute the same on behalf of the Authority, with modification to Section 3.4 (c) to extend the date of substantial completion from December 31, 1999 to December 31, 2002, and with any other such additions and modifications as those officers may deem desirable or necessary as evidenced by their execution thereof;.provided that the Authority's execution and delivery of the Development Agreement shall be conditioned on the fact that the Developer and City shall first successfully negotiate a mutually acceptable Park Dedication Fee. 3. Upon execution and delivery of the Development Assistance Agreement, the officers and employees of the Authority(including members of the City staff, acting in their capacity as staff to the Authority as well) are hereby authorized and directed to take or cause to be taken such actions as may be appropriate or necessary on behalf of the Authority to implement the Development Assistance Agreement, including without limitation issuance of the EDA Note and execution of the Certificate of Completion under the Development Assistance Agreement. 4. The Board hereby determines that the execution and performance of the Development Assistance Agreement as amended will help realize the public purposes of the Act and are in furtherance of the Project. 1110 Adopted by the Board of Commissioners of the Mounds View Economic Development Authority on August 25, 1997. BY: Duane McCarty, President ATTEST: Cathy Bennett, Executive Director III , Secretary' s Certificate 1111 I, the undersigned, being the duly qualified and acting Secretary of the Mounds View Economic Development Authority, do hereby certify that I have carefully compared the attached and foregoing resolution adopted at a special or regular meeting of the Board of Commissioners of said Authority duly called and regularly held on the date therein indicated with the original thereof on file in my office and I further certify the same is a full, true, and correct copy thereof, insofar as the same relates to the approval of a certain Development Assistance Agreement between the Authority and The Everest Group, Ltd. , respecting a certain Building "N" project . I further certify that Boardmember moved the 4111 adoption of said resolution, that Boardmember seconded said motion, and that upon a vote being taken thereon, the following Boardmembers voted in favor thereof: and the following Boardmembers voted against the same : whereupon said resolution was declared duly passed and adopted. WITNESS my hand as such Secretary of said Authority this day of , 1997 . Secretary Mounds View Economic Development Authority 4110 334455.2 • 4110 8/14/97 Draft DEVELOPMENT ASSISTANCE AGREEMENT By and Between THE MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY And 4110 THE EVEREST GROUP, LTD. [BUILDING "N" PROJECT] This document drafted by: Briggs and Morgan 2200 First National Bank Building 332 Minnesota Street Saint Paul, Minnesota 55101 Telephone : (612) 223-6600 Facsimile : (612) 226-6450 • 334455.4 TABLE OF CONTENTS 4111 (This Table of Contents is not part of the Development Assistance Agreement and is only for convenience of reference. ) Page ARTICLE I - DEFINITIONS 1-1 Section 1 . 1 . Definitions 1-1 ARTICLE II - REPRESENTATIONS, COVENANTS AND WARRANTIES . . 2-1 Section 2 . 1 . Representations and Warranties by the Authority 2-1 Section 2 . 2 . Representations, Covenants and Warranties by the Developer 2-2 ARTICLE III - THE IMPROVEMENTS 3-1 Section 3 . 1 . Undertakings of the Developer 3-1 Section 3 . 2 . Undertakings of the Authority 3-1 Section 3 . 3 . Construction Plans 3-3 Section 3 .4 . Certificate of Completion 3-4 ARTICLE IV - PROHIBITIONS AGAINST ASSIGNMENT AND TRANSFER; INDEMNIFICATION 4-1 Section 4 . 1 . Prohibition Against Transfer of Property and Assignment of Agreement 4-1 4111 Section 4 . 2 . Release and Indemnification Covenants . 4-2 ARTICLE V - EVENTS OF DEFAULT 5-1 Section 5 . 1 . Events of Default Defined 5-1 Section 5 . 2 . Remedies on Default 5-1 Section 5 . 3 . No Remedy Exclusive 5-1 Section 5 . 4 . No Additional Waiver Implied by One Waiver 5-1 Section 5 . 5 . Default by Authority; Specific Performance. 5-2 • ARTICLE VI - Additional Provisions 6-1 Section 6 . 1 . Titles of Articles and Sections 6-1 Section 6 . 2 . Notices and Demands 6-1 Section 6 . 3 . Counterparts 6-1 Section 6 .4 . Law Governing 6-1 Section 6 . 5 . Time of the Essence 6-1 Section 6 . 6 . No Third-Party Beneficiaries 6-1 ARTICLE VII - TERMINATION OF AGREEMENT; EXPIRATION 7-1 Section 7 . 1 . Termination 7-1 Section 7 . 2 . Sections to Survive Termination 7-1 • 334455.4 i i • EXHIBIT A - DEVELOPMENT PROPERTY A-1 EXHIBIT B - FORM OF EDA NOTE B-1 EXHIBIT C - CERTIFICATE OF COMPLETION C-i EXHIBIT D - PUBLIC IMPROVEMENTS D-1 EXHIBIT E - SITE IMPROVEMENTS E-1 • • 334455.4 1.1.1 DEVELOPMENT ASSISTANCE AGREEMENT • THIS AGREEMENT is dated as of , 1997; is by and between the Mounds View Economic Development Authority and The Everest Group, Ltd. , a Minnesota corporation; and provides as follows : ARTICLE I DEFINITIONS Section 1 . 1. Definitions . In this Agreement, unless a different meaning clearly appears from the context : "Agreement" means this Development Assistance Agreement by and between the Authority and the Developer, as the same may be from time to time modified, amended or supplemented. "Authority" means the Mounds View Economic Development Authority. "Board" means the Board of Commissioners of the Authority, its governing body. "Bonds" means (1) the City' s $6, 000, 000 Taxable General 4111 Obligation Tax Increment Bonds, Series 1988A, dated February 1, 1988, (2) the City' s $930, 000 General Obligation Tax Increment Bonds, Series 1989B, dated November 1, 1989, (3) the City' s $1,490, 000 Taxable General Obligation Tax Increment Bonds, Series 1989C, dated November 1, 1989, (4) and any bonds or similar obligations issued by the City or the Authority to refund any of the Bonds (including without limitation (i) the City' s $4, 945, 000 Taxable General Obligation Tax Increment Refunding Bonds, Series 1996B, dated May 1, 1996, and issued to "crossover refund" the above-mentioned Series 1988A Bonds as of February 1, 1996; (ii) the City' s $2 , 770, 000 Taxable General Obligation Tax Increment Refunding Bonds, Series 1996A, dated March 1, 1996, to the extent issued to advance refund the above-mentioned Series 1989C Bonds (pursuant to which said Series 1989C Bonds will be paid in full on February 1, 1997) ; and (iii) the City' s $815, 000 General Obligation Tax Increment Refunding Bonds, Series 1996B, dated March 1, 1996, and issued to advance refund and pay in full on February 1, 1997, the above-mentioned Series 1989 Bonds) . "Certificate of Completion" means the certificate substan- tially in the form of the attached Exhibit C, to be executed by the Authority upon the conditions provided in Section 3 .4 hereof upon completion of the Improvements . • 334455.4 1-1 . , 4111 "City" means the City of Mounds View, Minnesota. Construction Plans" means the plans, specifications, drawings and related documents on all construction work to be performed by or on behalf of the Developer on the Development Property, including the Improvements and all other on-site improvements to be performed, installed or constructed upon the Development Property pursuant to this Agreement . Such plans shall at a minimum include, where applicable, the following: (i) site plan; (ii) foundation plan; (iii) basement plans; (iv) floor plan for each floor; (v) cross sections of each (length and width) ; (vi) elevations (all sides) ; (vii) the Design Plans; and (viii) adequate plans, drawings and specifications relating to all driveways, walks, parking and other improvements to be constructed upon the Development Property by the Developer. "Design Plans" means plans which show in adequate detail the design, architectural style, facia, signing, lighting, landscaping, parking and interior traffic components of the Improvements, or applicable portions thereof. "Developer" means The Everest Group, Ltd. , a Minnesota corporation, or its successors or assigns under this Agreement, or any entity controlling, controlled by or under common control with The Everest Group, Ltd. , or its majority shareholder, Jeffrey L. Nielsen. 4110 "Development Costs" means the $615, 000 current market value of the Development Property plus the unreimbursed costs incurred and paid by the Developer in making the site improvements (the "Site Improvements") for the Improvements and in installing the necessary public infrastructure improvements (the "Public Improvements") for the Improvements, all as further described and defined in Section 3 .2 . "Development District" means the Authority' s Development District No. 2 , as amended. (Note : As of May 9, 1994, the Development District has been incorporated into the Authority' s Mounds View Economic Development Project . ) "Development Program" means the Authority' s Development Program for the Development District, as amended. (Note : As of May 9, 1994, the Development Program has been incorporated into the Project Plan of its Mounds View Economic Development .Project . ) "Development Property" means the real property described in Exhibit A of this Agreement. "EDA Note" means the obligation substantially in the form of the attached Exhibit B which is described in Section 3 . 2 . 4110 334455.4 1-2 "Event of Default" means any Event of Default described in 4111 Section 5 . 1 of this Agreement . "Improvements" means the approximately 103 , 000 square foot building which may be constructed by the Developer as manufactur- ing/warehouse/office facilities to be located on the Development Property within the Tax Increment Finance District, and all other improvements, including walks, landscaping, utility improvements and relocations, and fixtures and equipment, to be constructed or installed upon the Development Property in connection with and in order to facilitate the above described improvements . "Party" means either the Developer or the Authority, as the context may require. "Parties" means the Developer and the Authority. "Public Improvements" means the public infrastructure improvements for the Improvements described in Section 3 .2 and Exhibit D. "Site Improvements" means the site improvements for the Improvements described in Section 3 . 2 and Exhibit E. "State" means the State of Minnesota. "Tax Increment Act" means Minnesota Statutes, Sections 469 . 174 4111 through 469 . 179, as the same may be amended or supplemented. "Tax Increments" means those tax increments which the Authority shall be entitled to receive and retain, and which the Authority shall have actually received, from Ramsey County from time to time from the Tax Increment Financing District pursuant to the Tax Increment Act; provided that the term "Tax Increments" shall specifically not include any amounts of tax increment generated by the Tax Increment Financing District which pursuant to the applicable terms of the Tax Increment Act (as it may exist or be amended from time to time) may be required to be paid to or reserved for the State of Minnesota, Ramsey County, or any other entity or official; and "Available Tax Increments" means 9096 of the Tax Increments generated by the portion of the tax capacity of the Development Property which exceeds $22, 342 . "Tax Increment Financing District" means the Authority' s Tax Increment Financing District No. 1 (which has also been sometimes referred to as Tax Increment Redevelopment District No. 1) within the Development District, as now under the governance and control of the Authority, as described in Section 2 . 1 (c) . • 334455.4 1-3 • "Unavoidable Delays" means any delay outside the control of the Party claiming its occurrence which is the direct result of strikes, other labor troubles, unusually severe or prolonged bad weather, unavailability of materials, Acts of God, fire or other casualty to the Improvements, litigation (including without limitation bankruptcy proceedings) and which directly results in delays; or acts of any federal, state or local governmental unit which directly result in delays . 4111 41/0 334455.4 1-4 ARTICLE II • REPRESENTATIONS, COVENANTS AND WARRANTIES Section 2 . 1 . Representations and Warranties by the Authority. The Authority represents and warrants that : (a) The Authority is a municipal corporation and political subdivision of the State organized and existing under the laws of the State. (b) The Authority has the authority to enter into this Agreement and carry out its obligations hereunder, subject to the same enforceability exceptions provided in Section 2 .2 (a) with respect to the Developer. (c) The Authority represents that the City established the Development District and adopted its Development Program pursuant to the Minnesota Municipal Development District Act, previously found in Minnesota Statutes, Chapter 472A, and now codified in Minnesota Statutes, Sections 469 . 124 through 469 . 134, and that the City established the Tax Increment Financing District within the Development District pursuant to the Tax Increment Act . The Authority also represents that pursuant to Minnesota Statutes, Section 469 . 093, on March 28, 1994, the City Council adopted an enabling resolution and thereby established the Authority. Pursuant to Minnesota Statutes, Section 469 . 094, Subdivision 2 , the City transferred to the Authority, and the Authority accepted from the City transfer of, the control, authority, and operation of the Development District, including the Tax Increment Financing District therein, thereby empowering the Authority to exercise all of the powers that the City could exercise with respect to the Development District, subject to the covenant and pledge by the Authority to perform the terms, conditions, and covenants of all bond indentures and other agreements executed for the security of any bonds issued and any other activities undertaken with respect to the Development District . (d) The Authority makes no representation, guarantee, or warranty, either express or implied, and hereby assumes no responsibility or liability as to the Development Property or its condition (whether regarding soils, pollutants, hazardous wastes or materials or otherwise) or that the Development Property will be suitable for the purposes or needs of the Developer. 410 334455.4 2-1 • Section 2 .2 . Representations, Covenants and Warranties by the Developer. The Developer represents, covenants, and warrants that : (a) The Developer is a corporation duly organized, existing, and in good standing under the laws of the State of Minnesota. The Developer has full power and authority to enter into this Agreement and to perform its obligations hereunder and has taken or caused to be taken all actions necessary to make the Agreement, when executed and delivered by the Parties, the valid and binding agreement and obligation of the Developer, enforceable in accordance with its terms, except to the extent such enforceability may be limited by equitable principles and by laws affecting remedies and by bankruptcy, moratorium and insolvency laws and laws affecting creditors ' rights, heretofore or hereafter enacted. (b) If the Developer completes the Improvements, they shall be completed in accordance with the terms of this Agree- ment and all applicable local, State and federal laws and regulations (including, but not limited to, environmental, zoning, building code and public health laws and regulations) . (c) The Developer has received no notice or communication from any local, state or federal official to the 4110 effect (and, to the best of the Developer' s knowledge, there is no other basis upon which to believe) that the execution of this Agreement or the performance by the Developer under this Agreement is, may be or will be in violation of any local, state or federal law or regulation. (d) The Developer agrees and covenants that it will use its best efforts to obtain or cause to be obtained, in a timely manner, all required permits, authorizations, licenses and approvals, including environmental and zoning approvals for the Development Property and the Improvements, and that the Developer will meet and abide by, in a timely manner, all requirements and conditions of all such permits, authorizations, licenses, and approvals and of all applicable local, state, and federal laws and regulations which must be obtained or met before the Improvements may be lawfully undertaken and completed. (e) Neither the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby nor the fulfillment of or compliance with the terms and condi- tions of this Agreement is prevented or limited by or in conflict with or will result in a breach of the terms, conditions or provisions of the Developer' s Articles of Incorporation or By-Laws or of any evidences of indebtedness, 4111 334455.4 2-2 • agreement, or instrument of whatever nature to which the • Developer is now a party or by which it or its property is bound or will constitute a default under any of the foregoing. (f) The Developer represents that it would not be able to undertake the Improvements in the reasonably foreseeable future without the assistance to be provided by the Authority under this Agreement . (g) The Developer currently owns the Development Property and represents that it consists of approximately 300, 038 square feet of land area. The Developer represents that the Development Property consists of tax parcel numbers 08-30-23-44-0002, -0012 and -0016 and 08-30-23-41-0012 and that, for property taxes payable in 1997, the tax capacity of the Development Property is $22,342 . (h) The Developer acknowledges that it has reviewed Minnesota Statutes, Section 116J. 991, and entitled "Public Assistance to Business; Wage and Job Requirements, " requiring that within 2 years of receiving the assistance provided pursuant to this Agreement, which for this purpose shall be deemed to be the 2 year period beginning on the date of the Certificate of Completion, the Developer shall comply with certain jobs and other obligations stated in the above- mentioned statute. The Developer hereby covenants to comply with said obligations, and the Parties agree that said goal level shall be the creation of at least 2 permanent full-time jobs within the applicable 2 year period. The Developer acknowledges and agrees that, as required by this statutory provision, failure to meet said goals will result in an Event of Default hereunder and in an obligation of the Developer to repay all of the assistance provided pursuant to this Agreement . The Developer further agrees that said jobs shall have an hourly wage of at least $6 . 50 per hour, inclusive of benefits. This subparagraph shall not be construed as imposing on the Developer any obligation beyond the scope and purpose of the above-mentioned statute to maintain or provide minimum employment and wage levels . The Developer further agrees to provide to the Authority in a timely manner, or to the State of Minnesota, as may be applicable, with such information and detail about the Improvements as may be necessary, including information relating to the employment and wage levels described in this subparagraph and the compliance with any reporting requirements imposed by law with respect thereto on either the Authority or the Developer. (i) In practice, the Developer reasonably expects that upon the completion and full occupancy of the Improvements there could well be as many as 20 jobs provided, but this • 334455.4 2-3 expectation is not intended by the Parties and shall not be 4111 construed as a performance covenant hereunder or a standard against which compliance with subsection (h) above or Minnesota Statutes, Section 116J. 991, shall be determined. 410 410 334455.4 2-4 ARTICLE III 411 THE IMPROVEMENTS Section 3 . 1 . Undertakings of the Developer. Subject to Unavoidable Delays, the Developer agrees to exercise reasonable effort to cause the Improvements to be completed. The Authority acknowledges that the Developer' s ability to construct the Improvements is subject to current market conditions, including without limitation the availability of tenants, owners and financing and that the Developer is not obligated to cause the construction of the Improvements on a speculation basis . Pursuant to prior agreement of the Parties the Authority retained the services of Dahlen & Dwyer to prepare an appraisal (the "Appraisal" ) of the fair market value of the Development Property based on its present state and the type of use represented by the Improvements . The fair market value of the Development Property is determined to be $615, 000 pursuant to the Appraisal . The Developer shall pay or reimburse the Authority for the $1, 500 cost of the Appraisal . The Authority has provided the Developer with a copy of the completed Appraisal . Section 3 . 2 . Undertakings of the Authority. The Developer hereby represents to the Authority that the Developer (and/or its affiliate, Michael Investments) has incurred and paid or will incur and pay the Development Costs, hereby defined to be the sum of (1) 4110 the current fair market value of the Development Property, being $615, 000, as indicated in the Appraisal; (2) the demonstrated costs of the public infrastructure improvements (the "Public Improvements" ) described in Exhibit D, but only if and to the extent the costs thereof are unreimbursed expenses of the Developer which are not repayable by special assessment or other means; and (3) the demonstrated and unreimbursed costs of the Developer incurred in making the necessary site improvements (the "Site Improvements" ) to the Development Property in connection with the completion of the Improvements, as described in Exhibit E. The Authority hereby agrees to defray the Developer' s Development Costs via the issuance of the EDA Note in the maximum principal amount equal to the lesser of (1) $1, 200 , 000 and the (2) sum of the demonstrated costs of the Site Improvements and the Public Improvements (unless specifically assessed) plus the $615, 000 fair market value of the Development Property under the Appraisal . The EDA Note shall be issued to the Developer (or to such other person or entity as the Developer shall have theretofore designated in writing to the Authority as the initial registered owner of the EDA Note) , as registered owner thereof, substantially in the form of Exhibit B to this Agreement, the issuance of which EDA Note is hereby authorized and approved, subject to the following conditions : 4110 334455.4 3-1 (a) The EDA Note shall be dated, issued and delivered on or as soon as practicable following the date of execution and delivery of this Agreement, provided no Event of Default shall have occurred and be at the time continuing. (b) As conditions to such reimbursement of Development Costs pursuant to the EDA Note, (i) the Authority shall have executed the Certificate of Completion, (ii) the Developer shall have submitted to the Authority such documentary proofs as shall be reasonably acceptable to the Authority demonstrating the final, as incurred, costs of the above- described Public Improvements and Site Improvements, and (iii) there shall have been satisfied all of the conditions precedent thereto provided in Section 3 .4 . (c) Subject to the provisions of the EDA Note, the principal of and interest on the EDA Note shall in the aggregate be payable on each February 1 and August 1, commencing with the first August 1 or February 1 (as the case may be) following the date of the Certificate of Completion, and continuing through February 1, 2014 (the "Payment Dates") , in the respective amount or amounts described in this subsection. The sole source of funds available for payment of the Authority' s obligations under this Section and correspondingly under the EDA Note shall be the Available Tax 4111 Increments . The amounts otherwise payable on the EDA Note on each Payment Date shall be limited to the Available Tax Increments received by the Authority within the preceding 6 months . All payments made on the EDA Note shall be applied first to pay accrued and unpaid interest on the EDA Note and second toward payment of principal . All amounts of Tax Increments which are not Available Tax Increments are not subject to this Agreement, and the Authority retains full discretion as to any authorized application thereof, regard- less of whether the Available Tax Increments are sufficient to reimburse the Developer in full for the above-described costs . To the extent that the Available Tax Increments are insufficient, through the final Payment Date (February 1, 2014) , to pay all accrued and unpaid interest on and the principal of the EDA Note, said unpaid amounts shall then cease to be any debt or obligation of the Authority whatsoever. (d) The unpaid principal of the EDA Note shall bear simple, non-compounded interest from the date of the Certificate of Completion at 8 . 000 per annum. Interest shall be computed on the basis of a 360-day year consisting of 12 months of 30 days each. 410 334455.4 3-2 (e) The EDA shall not endeavor to issue the EDA Note so that the interest thereon shall be exempt from federal or110 State income taxation, and the Parties accordingly anticipate that the EDA Note will be a "taxable" obligation. (f) The EDA Note shall be a special and limited revenue obligation of the Authority and not a general obligation of the Authority, and only Available Tax Increments shall be used to pay the principal of and interest on the EDA Note. The EDA Note shall not be any obligation whatsoever of the City. (g) The Authority' s obligation to make payments on the EDA Note shall be conditioned upon the requirement that there shall not at the time have occurred and be continuing an Event of Default; provided, however, that if such Event of Default shall subsequently have been cured to the reasonable satisfaction of the Authority, such unpaid obligations shall thereupon be reinstated and thereby become due and payable. (h) The EDA Note shall be governed by and payable pursuant to the additional terms thereof, as set forth in Exhibit B. In the event of any conflict between the terms of the EDA Note and the terms of this Section 3 . 2, the terms of the EDA Note shall govern. (i) Following any termination of this Agreement by the 4111 EDA pursuant to Section 5 .2 or 3 .4 (c) hereof, no further or unpaid amounts of the EDA Note shall then or thereafter be due and payable by the Authority under this Section or the EDA Note but shall thereupon be extinguished. (j ) The pledge of the Available Tax Increments made in this Section 3 .2 and in the EDA Note to payment of the EDA Note shall in all respects be junior and subordinate to the pledge of and need for the Tax Increments to provide timely payment of the debt service on the Bonds; provided, however, that the Authority does covenant to the Developer to apply all other Tax Increments (that is, all Tax Increments other than the Available Tax Increments) to such purposes and to resort to Available Tax Increments only in the event that said other increments are insufficient for such debt service purposes . Section 3 . 3 . Construction Plans . (a) The Authority shall have no obligation to the Developer to take any action pursuant to any provision of this Agreement until such time as the Developer has submitted Construction Plans to the Authority, and the Authority has approved such Construction Plans . The Authority shall approve the Construction Plans if it determines that they conform to 41/1 334455.4 3-3 • the applicable 'provisions of this Agreement; provided, however, that any such approval of the Construction Plans pursuant to this Section 3 . 3 shall constitute approval for the purposes of this Agreement only and shall not be deemed to constitute approval or waiver by the Authority with respect to any building, zoning or other ordinances or regulation, and shall not be deemed to be sufficient plans to serve as the basis for the issuance of a building permit if the Construction Plans are not as detailed or complete as the plans otherwise required for the issuance of a building permit . Such Construction Plans must be rejected in writing by the Authority within 10 working days of submission or shall be deemed to have been approved by the Authority. Any rejection of the Construction Plans shall state in writing the Authority' s reasons therefor. If the Authority rejects the Construction Plans in whole or in part, the Developer may submit new or corrected Construction Plans within 30 days after receipt by the Developer of written notification of the rejection, accompanied by a written statement of the Authority specifying the respects in which the Construction Plans submitted by the Developer fail to conform to the requirements of this Section 3 .3 . The provisions of this Section 3 .3 relating to approval, rejection and resubmission of the Construction Plans shall continue to apply until the Construction Plans have been fully approved by the Authority. 4110Approval of the Construction Plans by the Authority shall not relieve the Developer of any obligation to comply with the provisions of this Agreement or the provisions. of applicable federal, state and local laws, ordinances and regulations, and approval of the Construction Plans by the Authority shall not be deemed to constitute a waiver of any Event of Default . (b) If the Developer desires to make any material change in the Construction Plans after their approval by the Authority, the Developer shall submit the proposed change to the Authority for its approval or rejection pursuant to this Section. A proposed change in the Construction Plans shall be deemed approved unless rejected by the Authority in writing within 10 working days of submission thereof with a statement of the Authority' s reasons for such rejection. Section 3 .4 . Certificate of Completion. (a) Promptly after completion of the Improvements in accordance with the provisions of this Agreement, and upon written request made to the Authority, the Authority will execute the Certificate of Completion in the form attached hereto as Exhibit C, which shall then be a conclusive determination of satisfaction and termination of the agreements and covenants in this Agreement with respect to the 4111 334455.4 3-4 completion of the Improvements . The following shall be conditions precedent to the Authority' s obligation to execute the Certificate of Completion: (i) There shall exist no Event of Default hereunder, and the Improvements shall have been completed in substantial conformity to the terms of this Agreement; (ii) The City shall have issued a Certificate of Occupancy for the Improvements . (b) If the Authority determines that it cannot execute the Certificate of Completion, it shall, within 20 days after written request therefor, provide a written statement indicating in adequate detail why it cannot do so and also indicating what measures or acts it will be necessary to be taken or performed in order to permit execution of the Certificate of Completion. (c) If the Developer does not substantially complete the Improvements by December 31, 1999, the Authority may terminate this Agreement upon 30 days prior written notice to the Developer. Upon such termination, neither Party shall have any further right, title, obligation or interest hereunder, except as provided pursuant to Section 7 . 2 . 410 410 334455.4 3-5 4110 ARTICLE IV PROHIBITIONS AGAINST ASSIGNMENT AND TRANSFER; INDEMNIFICATION Section 4 . 1 . Prohibition Against Transfer of Property and Assignment of Agreement . The Developer represents and agrees that prior to the execution of the Certificate of Completion: (a) Except only by way of security for the purpose of obtaining financing necessary to enable the Developer or any successor in interest to the Development Property, or any part thereof, to perform its obligations with respect to the Improvements under this Agreement, and any other purpose authorized by this Agreement, the Developer has not made or created and will not make or create or suffer to be made or created any total or partial sale, assignment, conveyance, or lease, or any trust or power, or any transfer in any other mode or form, of or with respect to the Agreement or the Development Property or any part thereof or any interest therein, or any contract or agreement to do any of the same, except for the leasing of portions of the Improvements in the ordinary course of the Developer' s business of developing and leasing facilities such as the Improvements, without the prior • written approval given by the Authority in its sole discretion; provided, however, if the Developer wishes to assign this Agreement, the Authority will not unreasonably withhold approval thereof if the conditions stated in subsection (b) below are met . (b) The Authority shall be entitled to require, except as otherwise provided in the Agreement, as conditions to any such approval that : (i) Any proposed transferee shall have the qualifications and financial responsibility, in the reasonable judgment of the Authority, necessary and adequate to fulfill the obligations undertaken in this Agreement by the Developer. (ii) Any proposed transferee, by instrument in writing satisfactory to the Authority, shall, for itself and its successors and assigns, and expressly for the benefit of the Authority, have expressly assumed all of the obligations of the Developer under this Agreement and agreed to be subject to all the conditions and 41/0 334455.4 4-1 restrictions to which the Developer is subject unless the Developer agrees to continue to4110 fulfill those obligations . In addition, the Authority may require the Developer and/or the transferee to join in such agreements as the Authority may reasonably determine to be necessary to clarify the respective rights and obligations of the interested parties, e.g. , to obtain a waiver and acknowledgement from the transferee if that transferee is not also becoming the registered owner of the EDA Note. (iii) There shall be submitted to the Authority for review and prior written approval all instruments and other documents involved in effecting the transfer of any interest in this Agreement or the Development Property; provided that the purposes of said review and approval shall be only to ascertain that said documents do not contravene the terms of this Agreement and sufficiently provide for the intended and permitted transfer. Specifically, but without limitation, the economics of the transfer, as between the Developer and its transferee, shall not be a basis for the Authority to withhold consent thereto. 4110 Section 4 . 2 . Release and Indemnification Covenants . (a) The Developer releases from and covenants and agrees that the Authority and the governing body members, officers, agents, including its independent contractors, consultants and legal counsel, servants and employees thereof (hereinafter, for purposes of this Section, collectively the "Indemnified Parties" ) shall not be liable for and agrees to indemnify and hold harmless the Indemnified Parties against any loss or damage to property or any injury to or death of any person occurring at or about or resulting from any defect in the Improvements, provided (1) that the foregoing indemnity shall not apply to any liability arising pursuant to an act or omission of any of the Indemnified Parties and (2) that the claim or matter against which such indemnification is sought is based upon the acts of the Developer or others acting on its behalf or under its direction or control . (b) Except for any willful misrepresentation or any willful or wanton misconduct of the Indemnified Parties, the Developer agrees to protect and defend the Indemnified Parties, now and forever, and further agrees to hold the 41/0 334455.4 4-2 aforesaid harmless from any claim, demand, suit, action or • other proceeding whatsoever by any person or entity whatsoever arising or purportedly arising from this Agreement, or the transactions contemplated hereby or the acquisition, construction, installation, ownership, and operation of the Improvements, provided (1) that this indemnification shall not apply to the warranties made or obligations undertaken by the Authority in this Agreement and (2) that the claim or matter against which such indemnification is sought is based upon the acts of the Developer or others acting on its behalf or under its direction 'or control . (c) All covenants, stipulations, promises, agreements and obligations of the Authority contained herein shall be deemed to be the covenants, stipulations, promises, agreements and obligations of the Authority and not of any governing body member, officer, agent, servant or employee of the Authority. (d) This Agreement shall not create and shall not be construed to create any partnership, joint venture, agency or employment relationship between the Parties . • • 334455.4 4-3 • ARTICLE V 4110 EVENTS OF DEFAULT Section 5 . 1 . Events of Default Defined. The following are Events of Default under this Agreement : Failure in the substantial observance or performance of any covenant, condition, obligation, or agreement on the part of the Developer to be observed or performed under this Agreement . An Event of Default shall also include any occurrence which would with the passage of time or giving of notice become an Event of Default as defined hereinabove. Section 5 .2 . Remedies on Default . Whenever any Event of Default occurs, in addition to all other remedies available to the Authority at law or in equity or elsewhere in this Agreement, (1) the Authority may suspend its performance under the Agreement until it receives assurances from the Developer, deemed adequate by the Authority, that the Developer has cured its default and will continue its performance under the Agreement and (2) , after provision of 30 days written notice from the Authority to the Developer of the Event of Default, but only if the Event of Default has not been cured within said 30 days, or if the Event of Default cannot be cured within 30 days, the Developer does not provide assurances to the Authority reasonably satisfactory to the Authority that the Event of Default will be promptly cured, then the Authority may terminate this Agreement . Section 5 .3 . No Remedy Exclusive . No remedy herein conferred upon or reserved to the Authority is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. Section 5 . 4 . No Additional Waiver Implied by One Waiver. If any agreement contained in this Agreement should be breached by any Party and thereafter waived by any other Party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other concurrent, previous or subsequent breach hereunder. 410 334455.4 5-1 4111 Section 5 . 5 . Default by Authority; Specific Performance. If the Authority is in default of its obligations under this ment, the Authority agrees that the Developer shall have the remedy of specific performance, in addition to such other remedies as the Developer may have administratively, at law or in equity. In such event, the Developer may suspend its performance hereunder until it receives assurances reasonably satisfactory to the Developer that the default of the Authority will be cured as soon as reasonably possible . 410 41/0 334455.4 5-2 ARTICLE VI 4111 Additional Provisions Section 6 . 1 . Titles of Articles and Sections . Any titles of the several parts, Articles and Sections of this Agreement are inserted for convenience of reference only and shall be disregarded in construing or interpreting any of the provisions hereof. Section 6 .2 . Notices and Demands . Except as otherwise expressly provided in this Agreement, a notice, demand or other communication under the Agreement by either Party to the other shall be sufficiently given or delivered if sent by regular mail, postage prepaid, or delivered personally or telecopied, (a) in the case of the Developer, to The Everest Group, Ltd. , 2665 Long Lake Road, Suite 120, Roseville, Minnesota 55113 , Attention: Jeffrey L. Nielsen, President; with a copy to Glenn Bergman, Peterson, Fram & Bergman, 300 Princeton Bank Building, 50 East Fifth Street, St . Paul, Minnesota 55101- 1197; and (b) in the case of the Authority, to the Mounds View Economic Development Authority at the Mounds View City Hall, 2401 Highway 10, Mounds View, Minnesota 55112, Attention: Mounds View EDA Executive Director. 4111 or at such other address with respect to either such Party as that Party may, from time to time, designate in writing and forward to the other Party as provided in this Section. Section 6 .3 . Counterparts . This Agreement may be executed in any number of counterparts, each of which shall constitute an original hereof and all of which shall constitute one and the same instrument . Section 6 .4 . Law Governing. The parties agree that this Agreement shall be governed and construed in accordance with the laws of the State of Minnesota. Section 6 . 5 . Time of the Essence . Time shall be of the essence in this Agreement . Section 6 . 6 . No Third-Party Beneficiaries . There shall, as against the Authority, be no third-party beneficiaries to this Agreement . More specifically, the Authority enters into this Agreement, and intends that the consummation of the Authority obligations contemplated hereby shall be, for the sole and exclusive benefit of the Developer, and notwithstanding the fact that any other "persons" may ultimately participate in or have an • 334455.4 6-1 interest in the Project, or any portion thereof, the Authority does ID not intend that any party other than the Developer shall have, as alleged third party beneficiary or otherwise, any rights or interests hereunder as against the Authority, and no such other party shall have standing to complain of the Authority' s exercise of, or alleged failure to exercise, its rights and obligations, or of the Authority' s performance or alleged lack thereof, under this Agreement . 410 410 334455.4 6-2 ARTICLE VII 41/0 TERMINATION OF AGREEMENT; EXPIRATION Section 7. 1. Termination. The Authority may terminate this Agreement as provided herein, and otherwise this Agreement shall terminate upon payment of the EDA Note in accordance with its terms and the discharge of all of the Parties ' other respective obligations hereunder, but no such termination shall terminate any indemnification or other rights or remedies arising hereunder due to any Event of Default which occurred prior to such termination. Section 7.2 . Sections to Survive Termination. Section 4 .2 shall, in addition to the other surviving provisions referenced in Section 7.1, survive the termination of this Agreement. • IN WITNESS WHEREOF, the Authority has caused this Agreement to be duly executed in its name and behalf by its duly authorized representatives, and the Developer has caused this Agreement to be duly executed in its name and behalf by its duly authorized representatives on or as of the date first above written. MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY 4111 By President By Executive Director THE EVEREST GROUP, LTD. By Its President By Its Chairman of the Board [Execution page of Development Assistance Agreement with the Mounds View Economic Development Authority. ] 4110 334455.4 7-1 EXHIBIT A • DEVELOPMENT PROPERTY The Development Property consists of the following described properties, all located in the City of Mounds View, Ramsey County, Minnesota: Current Tax Parcel Nos . 08-30-23-41-0012 , 08-30-23-44-0002 , 08-30-23-44-0012 and 08-30-23-44-0016, said parcels constituting the following described property: Lot 3, Block 3, PROGRAMMED LAND FIRST ADDITION Lot 2, Block 1, PROGRAMMED LAND SECOND ADDITION That part of Outlot A, MOUNDS VIEW BUSINESS PARK, lying east of a line beginning at a point on the south line of said Outlot A, said point being South 89 degrees 19 minutes 21 seconds East, assumed bearing, 409.00 feet from the southwest corner of said Outlot A; thence North 31 degrees 43 minutes 48 seconds East 19.26 feet to the north line of said Outlot A and said line there • terminating; That part of the south 5 acres of Lot 2, Block 2, PINECREST ADDITION lying east of a line beginning at a point on the north line of said south 5 acres, said point being 414.36 feet east of the northwest corner of said south 5 acres; thence south at an angle of 90 degrees 00 minutes 00 seconds right to the south line of said Lot 2, and said line there terminating. [NOTE: Said parcels to be replatted as Lot 1, Block 1, MOUNDS VIEW BUSINESS PARK EAST 2ND ADDITION] • A-1 EXHIBIT B 1110 FORM OF EDA NOTE No. R-1 UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF RAMSEY MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY TAXABLE TAX INCREMENT REVENUE NOTE OF 1997 (BUILDING "N" PROJECT) [1] The Mounds View Economic Development Authority (the "EDA" ) hereby acknowledges itself to be indebted and, for value received, hereby promises to pay to or its registered assigns (the "Registered Owner" ) , but only in the manner, at the times, from the sources of revenue, and to the extent hereinafter provided, the Principal Amount of this Note (as defined in paragraph [2] hereof) and to pay interest on the unpaid4110. portions of the Principal Amount of this Note at the rate of interest of eight and no hundredths percent (8 . 009s) per annum. Interest shall accrue from the date of the Certificate of Completion and shall be computed on the basis of a 360-day year consisting of 12 30-day months . This Note is the "EDA Note" described and defined in that certain Development Assistance Agreement, dated as of , 1997 (as the same may be amended from time to time, the "Development Agreement") , between the EDA and The Everest Group, Ltd. , a Minnesota corporation, as the initial Developer under the Development Agreement . Each capitalized term which his used but not otherwise defined in this Note shall have the meaning given to that term in the Development Agreement . [2] The Principal Amount of this Note shall be the lesser of (1) $1, 200, 000 and (2) the $615, 000 appraised value of the Development Property determined pursuant to the Appraisal plus the amounts of costs for both the Public Improvements (unless specially assessed) and the Site Improvements, all as completed in the subsequent certification thereof which appears hereinafter in this Note. [3] Subject to the terms hereof, amounts due on this Note shall be payable on each February 1 and August 1, commencing on the • 334455.4 B-1 4111 first August 1 or February 1 (as the case may be) following the date of the Certificate of Completion and continuing through February 1, 2014 (the "Payment Dates") . [4] On each Payment Date (or, if not a business day of the EDA, the first business day thereafter) the EDA shall pay by check or draft mailed to the person that was the Registered Owner of this Note at the close of the last business day of the EDA preceding such Payment Date an amount equal to the lesser of (1) the Available Tax Increments received by the EDA within the 6-month period preceding said Payment Date and (2) the sum of (i) the accrued and unpaid interest hereon and (ii) the aggregate amount of the unpaid principal of this Note. The EDA shall have the option at any time to prepay in whole or in part the principal amounts of this Note at par plus accrued interest . All payments made by the EDA under this Note shall be applied first to pay accrued and unpaid interest on this Note and second toward payment of principal hereof . [5] This Note shall terminate and be of no further force and effect on any date upon which the EDA shall have terminated the Development Agreement, on the last Payment Date (February 1, 2014) following payment thereon of the Available Tax Increments then due, or on the date that all principal and interest payable hereunder shall have been paid in full, whichever occurs earliest . 4111 [6] The pledge of Available Tax Increments to the payment of this Note is junior and subordinate to the need and use thereof for payment of the Bonds, all as defined and described in the Development Agreement. [7] The EDA makes no representation or covenant, express or implied, that the revenues described herein will be sufficient to pay, in whole or in part, the amounts which are or may otherwise become due and payable hereunder. Any amounts which remain unpaid on this Note following the final Payment Date (February 1, 2014) shall no longer be a debt or obligation of the EDA whatsoever. [8] The EDA' s payment obligations hereunder shall be further conditioned on the fact that there shall not at the time have occurred and be continuing an Event of Default under the Development Agreement, and, further, if pursuant to the occurrence of an Event of Default under the Development Agreement the EDA elects to terminate the Development Agreement, the EDA shall have no further debt or obligation under this Note whatsoever. Reference is hereby made to the provisions of the Development Agreement for a fuller statement of the obligations of the Developer and of the rights of the EDA thereunder, and said provisions are hereby incorporated by reference into this Note to the same extent as though set out in full herein. The execution • 334455.4 B-2 and delivery of this Note by the EDA, and the acceptance thereof by • the Developer or its designee, as the initial Registered Owner hereof, shall conclusively establish this Note as the "EDA Note" (and shall conclusively constitute discharge of the EDA' s obligation to issue and deliver the same) under the Development Agreement. [9] This Note is not any obligation of any kind whatsoever of any public body, except that this Note is a special and limited revenue obligation but not a general obligation of the EDA and is payable by the EDA only from the sources and subject to the qualifications and limitations stated or referenced herein. Neither the full faith and credit nor the taxing powers of the EDA are pledged to or available for the payment of the principal of or interest on this Note, and no property or other asset of the EDA, save and except the above referenced Available Tax Increments, is or shall constitute a source of payment of the EDA' s obligations hereunder. [10] This Note is issued by the EDA in aid of financing a project pursuant to and in full conformity with the Constitution and laws of the State of Minnesota, including Minnesota Statutes, - Sections 469 . 174 through 469 . 179 . [11] This Note may be assigned but upon such assignment the assignor shall promptly notify the EDA thereof in writing, and the • assignee shall surrender this Note to the EDA either in exchange for a new fully registered note or for transfer of this Note on the registration records for the Note maintained by the EDA. Each such assignee shall take this Note subject to the foregoing conditions and subject to all provisions stated or referenced herein. [12] This Note has been issued as a taxable and not as a tax- exempt obligation, and the EDA makes no representation, express or implied, that the interest on this Note is or may be excludable from gross or taxable net income of the Registered Owner for income tax purposes . [13] IN WITNESS WHEREOF, the Mounds View Economic Development Authority has caused this Note to be executed by the manual signatures of its President and its Executive Director and has caused this Note to be issued and dated as of 1997 . President Executive Director S 334455.4 B-3 410 CERTIFICATION OF REGISTRATION It is hereby certified that the foregoing Note was as of the latest date listed below registered in the name of the last Registered Owner noted below, and that, at the request of said Registered Owner of this Note, the undersigned has as of said applicable date registered this Note as to principal and interest on the Note in the name of such Registered Owner, as indicated in the registration blank below, on the books kept by the undersigned for such purposes . DATE OF SIGNATURE OF EDA NAME OF REGISTERED OWNER REGISTRATION EXECUTIVE DIRECTOR , 1997 , 19 , 19 Subsequent Certification of Costs of Public Improvements and Site Improvement . 4111 The undersigned Executive Director of the Mounds View Economic Development Authority, pursuant to Section 3 . 2 of the Development Agreement, hereby certifies that the Developer has certified, and the Authority has accepted certification of a total of $ of costs of Site Improvements and a total of $ of costs • of Public Improvements. I further certify that pursuant to said provisions of the Development Agreement and the applicable terms of this Note, the finally-determined Principal Amount of this Note is Dated: Executive Director, Mounds View Economic Development Authority • 334455.4 B-4 EXHIBIT C • CERTIFICATE OF COMPLETION WHEREAS, the Mounds View Economic Development Authority (the "Authority") and The Everest Group, Ltd. , a Minnesota corporation (the "Developer") , have executed a Development Assistance Agree- ment, dated , 1997 (the "Development Agreement" ) , with respect to the completion by the. Developer of certain improvements (the "Improvements" ) , specifically, an approximately 103 , 000 square foot building on certain land (the "Development Property") described in the Development Agreement; and WHEREAS, said Developer has to the present date substantially performed its undertakings under the Development Agreement in a manner deemed sufficient by the Authority to permit the execution of this certificate pursuant to Section 3 .4 of the Development Agreement : NOW, THEREFORE, this is to certify that the Improvements have been completed on the Development Property in substantial conformance with the terms of the Development Agreement . MOUNDS VIEW ECONOMIC DEVELOPMENT • AUTHORITY By Its Dated: , 19 • 334455.4 C-1 y • EXHIBIT D PUBLIC IMPROVEMENTS Public Improvements include the following types of expenses for the Development Property incurred by the Developer: Public right-of-way costs for Program Avenue improvements (adjacent to Development Property), including: Estimated Cost Street Lighting $ 3,000 Entry/Driveway Aprons 13,000 Curbs and Gutter (north side of Program Avenue only) 4,000 Traffic Control Signs 1,000 Program Avenue Excavation and Repair 5,000 Landscaping and Irrigation within Public Right-of-Way 15,000 Water Main and Hydrants to serve Development Property 55,000 • Storm Sewer to serve Development Property 2,000 (Connection at Program Avenue) Engineering and Testing Fees for Public Improvements to serve Development Property 15,000 Administrative Costs: Supervision 6,000 Inspection Fees 5,000 Permits 2,000 Surveys 5,000 • 0 ExhDevAg(R)10/36 EXHIBIT E • SITE IMPROVEMENTS Site Improvements eligible for T1F reimbursement include the following types of expenses for the Development Property incurred by the Developer: Estimated Cost • Erosion Control/Silt Fence $ 5,000 Site Clearing and Tree Removal 5,000 Soil Correction 50,000 Grading/Backfilling/Compaction of Fill. 55,000 Sanitary Sewer 15,000 Pending and Storm Sewer System 75,000 Retaining Walls 85,000 -7,.Parking Lot Base and aving 173,000 A * Lwatzt Landscaping and Irrigation prinkier System 50,000 Project Identification Signage 15,000 Soil Testing and Location Surveys 7,000 • Environmental Costs, Assessments, Work Programs, ** Abatement/Clean-Up Architectural/Design Fees (Site Only) 4,000 Engineering and Inspection Fees (Site Only) 15,000 • Site Work Permit Fees 7,000 k TiFikppticattcrriaeposit10� /SAC & WAC Charges (Lind -lOubLw � L�tir .�-S) /tJc;�- Le Legal �!- w 27,000 �" • /Title L b naM 4&. i a 12,000 LIPN- "�"' / I Insurance 3,200 "`No environmental issues or remediation costs are anticipated at this time Winwarq/DawOaeumsnts MVNEXHE 11111 I Item No. 7C Staff Report No. EDA-97-85C ill Meeting Date 8-25-97 Type of Business EDAB WK: Work Session;PH:Public Hearing; CA: Consent Agenda;EDAB:EDA Business Mounds View Economic Development Authority Staff Report To: Mounds View Economic Development Authority From: Cathy Bennett, Director of Economic Development Item Title/Subject: Consideration of Appointing an Economic Development Commission Member to Fill Vacancy Date of Report: August 21, 1997 To fill the vacancy for a resident on the Economic Development Commission(EDC), attached are three applications from Dan Moon, Steven Larson and Thomas Field. EDC member Bev Tarhark resigned in May due to schedule conflicts. Her term expires December 31, 1998. Letters were mailed to several Mounds View residents who's names were recommended to me by various EDC and EDA members and an announcement was published in the Bulletin 0 requesting applications. Per Chapter 408.06, subdivision 1 of the Mounds View Municipal Code, the EDA President with the approval of a majority of the Authority Board must appoint new members for the unfulfilled portion of the term that has been vacated. Attached is resolution no. 97-EDA70 which would allow the EDA to approve the appointment of a resident to the EDC with a term expiring December 31, 1998. eI Cathy Bennett, Dir. of Economic Development Recommendation: Staff is recommending that the EDA consider the attached applications and appoint a resident to the EDC to fill the vacancy created when resident Bev Tarhark resigned. 411 RESOLUTION 97-EDA-70 • CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION APPOINTING ECONOMIC DEVELOPMENT COMMISSION MEMBER TO FILL VACANCY WHEREAS, the Economic Development Commission acts as an advisory commission to the Economic Development Authority on matters that relate to fostering a positive economic climate, encouraging economic development, and enhancing the tax base of the City; and WHEREAS, the Economic Development Commission is composed of three business representatives and four residents, and WHEREAS, per Chapter 408.06, subdivision 1 of the Mounds View Municipal Code entitled Economic Development Commission, Termination of Appointment, requires the "Authority President, with approval of a majority of the Authority Board of Commissioners, shall appoint a new member from applications received for the unfulfilled portion of a term that has been terminated", and WHEREAS, resident Bev Tarhark has given notification to the Commission Chairperson of her intentions for termination prior to the expiration of her term dated December 31, 1998, and WHEREAS, resident completed an application to fill the vacancy for a resident representative on the Economic Development Commission. NOW, THEREFORE, BE iT RESOLVED that the Economic Development Authority of the City of Mounds View hereby appoints to the Economic Development Commission with term expiring December 31, 1998. Adopted this 25th day of August, 1997. ATTEST: President (SEAL) Executive Director • 0 e.,.,,,L, Arv-Jj'i >3._ n MV seeks applicants The city ofMounds View is economic g deplica- '. tions for a vacancy on the city's ment commission(EDC). ��� � The EDC is responsible for making tions regarding retention and expansion of existing f businesses.attraction of desirable new business,rede- veloment and rehabilitation opportunities and other strategies:A Prior' ,�propnate economic develo��themes for the develop- "itY for 1997 is work on design ment of the Highway.10 Corridor in Mounds Vds y.ofewry The EDC'meets on the fourth month-at 7:30 a.m.at city hall....,.. , . Call 717-4002 for an application. • I III .... .: ' APPLICATION FOR ADVISORY GROUPS OR COMMITTEES 0 • Name of Group or Committee Applying For. ?A Z Second Choice (If Any): Full Name (First,Middle,Last): D/ptlit-i ' b al If Address: e9,;9 Plear,4 hT 1)1eeu brit"� Years At This Address: 5-. Years You Have Lived In Mounds view: 3- -Telephone Number Home: 93 -60-7.--) Work or Other. . QUALIFICATIONS YOU WANT THE CITY COUNCIL TO CONSIDER Skills and Interests: • /� Employment, Occupation, or/,Other Ezperience: - / Memberships, Accomplishments, or Other Qualifications. /ri41-frri "17°,01-4166 Your Reasons For Wang To Serve On This C mime- r.( t�v Please State You AdliLl J � y,2 t„� .scco Vazid,11417Zr'el. C4)(Y-)4`j . .,-4z2,4, til-,_,.. e<:- a6 /ifo-ez,-- c,Li..,, �z ,,4 a- Ycur response to any of the above may be continued on the back, and you may attach any other materials which you want the City Council to consider. 1 ,-, 2 Date S iziature i 4, / toequal access to its the police hat all persons s.hail have ase. ;latices • The City of Mounds View is committed creed. color, sex,oro°1' mss, facilities, and employment without retard. Co race, orin, or handicap. Cathy Bennet, EDC and EDA June 25, 1997 : Danny D. Moon Memberships, Accomplishments, or other; • Member Mounds View 2000 Housing Committee Received Mounds View Resident Appreciation Award, Nov. 1992 for suggesting savings on city printing costs Involved with the Hwy 10/U of M redevelopment hearings - I successfully helped stopped the overdevelopment of a piece of property in my neighborhood (the New Apostolic Church project) Have proposed and changes made to City code on PUC's in residential areas of Mounds View. Reasons for wanting to serve on the EDC I feel Hwy 10 has to be the starting point of general redevelopment of the City of Mounds View. After Hwy 10, the housing stock should and needs to be addressed from many angles. I know my neighborhood is not the only one that needs help, but I have successfully reduced the assessed value of my home two years in a row by just sending in pictures of my neighborhood. All this knowing if my home were located just 6 blocks south the value would be approx. 30% higher. Our neighbors to the south, New Brighton, is considered a desirable place to live, Mounds View is not, I would like to helped change that perception. Thank-you for considering this application to the Economic Development Commission Danny D. Moon III APPLICATION FOR ADVISORY GROUPS . OR COMMITTEES Name of Group or Committee Applying For: �cCG Second Choice (If Any): Full Name (First, Middle, Last): �-- Lima, / Address: 99 ( Years At This Address: Tj 3 Years You Have Lived In Mounds View: 33 Telephone Number Home: 784/-7728 Work or Other: ,S')/- 3o / QUALIFICATIONS YOU WANT THE CITY COUNCIL TO CONSIDER Skills and Interests: X0.14) �� aA/c/ 5-° ? "'1 h1-Kc • Employment, Occupation, or Other Experience: • - 1`( - t2-L----St-�^T/r-`i Memberships, Accomplishments, or Other Qualifications: E6/-PtwCP--- B � Please State Your Reasons For Wanting To Serve On This Committee: ZvTc 2.ts G-0 I /vt0 v nl 05 U t c LAJ 1Aty c c,P,"- -- / f�- f--�s�� 'Rts5,6 8 L ( Your response to any of the above may be continued on the back, and you may attach any other materials which you want the City Council to consider. Signature , Date 77.2_ q/) The City of Mounds View is committed to the policy that all persons shall have equal access to its programs, facilities, and employment without regard to race, creed, color, sex, age, national • origin, or handicap. • • • APPLICATION FOR ADVISORY GROUPS OR COMMITTEES Name of Group or Committee Applying For: l c.,"r+ l c_ 1:-...111 xi,. _t" c.,,, ,..rn'm./ Second Choice (If Any): Full Name (First, Middle, Last): b45 b _ C0,1 Address: /gay 14,..,0f if w 0. d Dr Years At This Address: Years You Have Lived In Mounds View: Telephone Number Home: -7,5:,_A-7-7, Work or Other: 7 c,,z,_r �-7___ QUALIFICATIONS YOU WANT THE CITY COUNCIL TO CONSIDER • Skills and Interests: ` ;C AS:.` %i'' gNev I ta.t= 1tf �rovXi a X !t-Md- . Arc*-- Employment, Occupation, or Other Experience: Bu c j „I-,.r c (3 Per•►k.'.Nl t")-e.-Ci c.FtL — Put s-r g Memberships,Accomplishments, or Other `Qualifications: 9 o b cc-r PI„r.a 1r A-s Soo_;c f-FS ,,,+ar, b FYt. 4-C1-/Ntc. f) R.rA A- S Gt,,f -C4-47, s Cenvvvk. Please State Your Reasons FortW�E'anting To Serve On This Committee: p cotr-1'11:10.v-VIP 1 Mcir.1tr.. vJoiki i", 4-o iMf&Ovstr +ke �s bVSktc CI;er,p4r 0 E t-14-1.1 its w v1 A s ts'-'>yotJeL -\-L -+A-')eae-, Your response to any of the above may be continued on the back, and you may attach any other materials which you want the City Council to consider. Signature — 7-L- - ->— ..._i 2,---+;11.e,X_ Date -7/^-VI/ 0 The City of Mounds View is committed to the policy that all persons shall have equal access to its programs, facilities, and employment without regard to race, creed, color, sex, ace, national origin, or handicap. ECONOMIC DEVELOPMENT COMMISSION 1997 WORK PLAN • Mission Statement: The Economic Development Commission shall serve as an advisory body to the Economic Development Authority to promote a positive economic climate and revitalize the • community by developing programs to retain and expand existing businesses, attract desirable new businesses, and redevelop target areas in the City. Action Steps: ■ Review and make recommendations to the EDA on programs and opportunities to enhance business development and retention. • Advocate for an approved Redevelopment Plan for Highway 10, Section 9 and encourage further study and planning for the entire Highway 10 Corridor as an important element in the positive economic vitality of Mounds View. Continue to act as the catalyst for and provide input on the development of a Corridor redevelopment plan. ▪ Review and make recommendations to the EDA on applications for the Mounds View Business Improvement Partnership Program. • ■ Provide comment to the Planning Commission in their analysis of the revision of the Mounds View Comprehensive Plan as it relates to the Highway 10 Corridor. • Evaluate staff research on innovative programs of other metro area cities as it relates to development, redevelopment and housing rehabilitation. • Work cooperatively with the Planning Commission in evaluating design standards for new development and redevelopment in the City. ■ Annually monitor and provide input on the Mounds View Housing Replacement Program. Evaluate the.program's effectiveness as a tool in providing the community with affordable and life cycle housing and generating positive long term economic growth and ensure that it meets the requirements under the Mounds View's Tax Increment Plan. ■ Participate with staff in retention calls to local businesses. • Communicate on a regular basis with the public on the Economic Development Commission activities, encouraging written or verbal comment, through the City Newsletter, cable and other interactive avenues. p, Item No. 7D • Staff Report No. EDA-97-85C Meeting Date 8-25-97 Type of Business EDAB WK: Work Session;PH:Public Hearing; CA:Consent Agenda;EDAB:EDA Business Mounds View Economic Development Authority Staff Report 1 � To: Mounds View Economic Development Authority From: Cathy Bennett, Director of Economic Development Item Title/Subject: Consideration of Resolution No. 97-EDA72 Authorizing the Negotiation and Execution of a Contract for Professional Services for the Development of Design Themes for Highway 10 Corridor Date of Report: August 22, 1997 Request: Staff is requesting and recommending the approval of Resolution No. 97-EDA72 which would authorize the negotiation and execution of a contract for professional services for the development of design themes for the Highway 10 Corridor. Members of the Planning • Commission Bobbie Brooks and Jean Miller interviewed four companies and will be making a recommendation between SRF Consulting and Hoisington Koegler Group Inc. to assist the community in developing a design theme for Highway 10 Corridor. Background: At the July 7, 1997 work session staff was directed to go out for a Request for Proposal for professional services to prepare a design theme for Highway 10 Corridor between Edgewood Drive and Silver Lake Road. The goal of the project is to develop 2-3 alternatives which would identify the area as the Mounds View City Center which is seen as a focal point of community activity and the City's commercial core. This request was precipitated in response to the level of development activity planned along the corridor and the outcome of the UofM Design Course that suggested a ring road be developed to define the "Heart of Mounds View". In addition, one of the major issues in the community and identified by the Council at goal setting sessions is the Highway 10 Corridor. Specifically land use and design issues are critical to the success of current and future corridor development. The City currently has a window of opportunity to implement a design theme with the current development proposals that will have a significant impact on the character of the • corridor. In addition, staff is hoping to develop a capital improvement plan for Highway 10 Corridor as part of the 1998 budget to include the elements of the design theme. . City of Mounds View Staff Report August 22, 1997 Page 2 • Process and Conclusions: Staff mailed the attached request for proposals to 15 consulting firms in the Twin Cities. We received 8 proposals of which 4 were chosen for interviews by members of the Planning Commission with the assistance of staff. Planning Commission members Bobbie Brooks and Jean Miller volunteered to assist City staff in interviewing the 4 firms on August 19th and 21st. We were able to narrow the firms to SRF Consulting Group and Hoisington Koegler Group and will be checking references Friday with a final recommendation available for the EDA meeting on Monday. I have left the name of the firm blank on the agenda and attached resolution and will bring the final resolution to the meeting for your consideration. Attached for your review and comment is the request for proposal and partial contents of both proposals. Cathy B nett, Dir. of Economic Development Recommendation: • Staff is recommending the approval of Resolution No. 97-EDA72 with the final recommendation for a firm by Planning Commission members. • MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 97-EDA72 COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION AUTHORIZING THE NEGOTIATION AND EXECUTION OF A CONTRACT FOR PROFESSIONAL SERVICES FOR THE DEVELOPMENT OF DESIGN THEMES FOR HIGHWAY 10 CORRIDOR It is hereby resolved by the Board of Commissioners (the"Board") of the Mounds View Economic Development Authority(the"Authority") as follows: 1. RECITALS: . (a) the Authority has the powers provided in Minnesota Statutes, Sections 469.124 to 469.124 and 469.090 to 469.108 (collectively the "Act"). • (b) Pursuant to and in furtherance of the objectives of the Act, the Authority has undertaken a program to promote development and redevelopment of certain land within the City of Mounds View and in this connection is engaged in carrying out the Mounds View Economic Development Project(the"Project") within the City. (c) There has been approved pursuant to the Act a Project Plan for the Project. (d) The redevelopment and development of property within the Project are stated objectives of the Project Plan. (e) In order to achieve the objectives of the Project Plan, the Authority has determined the need to contract with urban design,planning, transportation, engineering, land use and environmental professional service companies to aid and assist in the redevelopment and development of property within the Project. (f) The Authority desires to develop design themes for the Highway 10 Corridor between Edgewood Drive and Silver Lake Road to identify a focal point of community activity as Mounds View's City Center. (g) It has been recommended by members of the Mounds View Planning Commission and EDA Staff to enter into a contract for professional services (the"Contract") with • to devp 2-3 design concep City Center for an amount not to exceed$10,000.elots for Mounds View EDA RESOLUTION NO. 97-EDA72 • PAGE TWO OF TWO 2. The Board hereby determines that the Authority's negotiation and execution of a Contract would be in furtherance of the Project Plan and hereby approves and authorizes said actions, including the negotiation and execution of the Contract by the officers of the Authority in their discretion and at such time, if any, as they may deem appropriate. 3. Upon final negotiation, execution and delivery of the Contract, the officers and employees of the Authority(including members of the City staff and Commission, acting in their capacity as staff to the Authority as well) are hereby authorized and directed to take or cause to be taken such actions as may be appropriate or necessary on behalf of the Authority to implement the Contract which is being accomplished for redevelopment purposes. 4. The Board hereby determines that the negotiation, execution and performance of the Contract will help realize the public purposes of the Act and are in furtherance of the Plan. Adopted by the Board of Commissioners of the Mounds View Economic Development Authority on August 25, 1997. ATTEST: • President (SEAL) Executive Director 111 . • CITY OF MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY REQUEST FOR PROPOSAL FOR PROFESSIONAL SERVICES HIGHWAY 10 DESIGN THEME REQUEST: The City of Mounds View's Economic Development Authority(EDA) is seeldng proposals from qualified consultants to work with City Staff the Planning Commission and Economic Development Commission to prepare a design theme for the Highway 10 redevelopment corridor between Edgewood Drive and Silver Lake Road, located in the City of Mounds View. GOAL OF PROJECT: The goal of this project is to develop 2-3 design alternatives which would identify the area between Edgewood Drive and Silver Lake Road on Highway 10 as the Mounds View City Center,i.e. a focal point of community activity and the City's commercial core. The City is seeking to transform Highway 10 corridor into a more unified, attractive corridor that conveys a sense of place and contributes to the overall community fabric. Techniques could include an overall scheme for landscaping,lighting,signage, and fencing, and methods for marking the gateway point into this area(Edgewood Drive and Silver Lake Road.) The design theme • would be implemented along the parcels fronting on Highway 10, and attention needs to be given to existing land use, property conditions,natural features, and the amount of land available for implementing a design theme. Use of a portion of the H a possibilitybut not ��y 10 right-of-way is guaranteed. The City is seeking recommendations on whether the design approach should be formal or informal in nature,given the character of the larger community. The City also desires to utilize wherever possible natural features within the corridor such as wetlands and woodlands. BACKGROUND: The City of Mounds View is located 10 miles north of Minneapolis and St. Paul directly west of Interstate 35W on Highway 10. Mounds View is in the northwest corner of Ramsey County and is bordered by the communities of New Brighton,Arden Hills,Fridley, Blaine, Shoreview and Spring Lake Park. Mounds View has a population of 13,000 people and has grown from a bedroom community to a bustling suburb with diverse residential neighborhoods and three quality business park. The Mounds View City Council has directed that high priority be given to the Highway 10 corridor as the major thoroughfare in Mounds View,the focal point of the City's commer ..;_' zoning and as having considerable potential for strengthening the City's economic base. It is also reco?ii7ed that Highway 10 has a significant impact on the liveability of Mounds View and how the community is perceived. • On March 17, 1997, the City Council discussed community and economic development issues in Mounds View with staff One of the major issues discussed was the importance of the Highway 10 corridor. At that time, the City Council indicated that Highway 10 should be given a high priority, with immediate attention given to land use and design issues. City of Mounds View-Request for Proposals • Highway 10 Design Theme July 7, 1997 Page 2 Between December, 1996 and now,the City has received three major development proposals along the Highway 10 corridor. ■ O'Neil Property,which has received PUD zoning approval for a 16-screen movie theater,three office buildings and two restaurant sites a D.W. Jones Property,which has received PUD zoning approval for an 83-unit senior citizen housing development,gas station/convenience market/fast food restaurant/car wash, and office buildings and/or sit-down restaurant • Silver Lake Commons,which is under review and includes a major renovation of the Red Oak Apartments and construction of 16 new rental townhomes In addition,Mounds View was one of four cities which participated in a design course sponsored by the University of Minnesota. The issue selected for Mounds View for study was the Highway 10 corridor. One of the outcomes of this course was a sketch plan for the development of a ring road which would define the City's commercial core centered on Highway 10. It also resulted in discussions about the need to develop a stronger sense f place within this core or"heart"of Mounds View, and the need to tame Highway 10. At present, Highway 10 tends to act as a barrier and a route through the City rather than a stage for presenting the community of Mounds View. The City Council acting as the Economic Development Authority authorized this request for proposals for a design theme in order to find ways to overcome the current state of the Highway 10 corridor. It is the City's desire to create a more unified,attractive image for the City,to encourage a more coherent commercial district, and to create a City Center which would serve as a community focal point. Establishing a more coordinated approach to landscaping, signage,lighting and fencing, and establishing guidelines for building design and property appearance along Highway 10 would encourage higher quality development and strengthen the City's economic base. The design theme would also include proposed designs for the gateway points at Edgewood Drive and Silver Lake Road. These design elements would create a place which would attract businesses and customers, and which would present Mounds View as an attractive,prosperous community. It is also important that a design theme established as a reference point in working with private developers along Highway 10 on their site and landscaping plans. PROJECT AREA: The project area includes the Highway 10 corridor between its intersections with Silver Lake Road and County Road H2. (The City is seeking to realign Edgewood Drive se Highway 10 at right angles approximately half way between Long Lake Road and County koaci H2. It is hoped that approval will be obtained from MnDOT for a full-movement, signalized intersection at this point, and the existing uncontrolled full-movement intersection at Edgewood Drive will be abandoned. If this is accomplished,Edgewood would become the gateway to the . Mounds View City Center.) The length of this stretch of Highway 10 is approximately one mile. The project area would include the parcels fronting Highway 10 and the highway right- of-way itself • City of Mounds View-Request for Proposals Highway 10 Design Theme Juiy 7, 1997 . Page 3 SCOPE OF PROJECT: The scope of the project would include the following: 1. Visual evaluation of conditions on properties fronting Highway 10 for purposes of assessing the feasibility of implementing a design theme and the type of theme which would be appropriate. Attention would be given to type of land use, property condition,natural features, and amount of land available for implementing a desian theme. For example,notations would be made where existing improvement such as buildings and parking lots are situated relative to the Highway right-of-way line. The area to be assessed would be the north and south sides of Highway 10 between County Road H2 to Silver Lake Road. Notations on constraints to the implementation of a design theme should be included. The information from the visual evaluation would be mapped or otherwise synthesized. An exacting study is not expected. The City would make available development plans on file with the City, aerial photographs, drawings showing approximate location of • buildings and structures from Ramsey County. The.idea is to identify where there are none to minor to severe limitations on fitting design improvements, and to give consideration to adjacent site conditions in developing the design theme. 2. Tour of the City to assess its general character and the impact of the Highway 10 corridor. Review of the sketch plan for the Ring Road concept developed during t University of Minnesota design course. 3. Review of the active development plans for sites in the Highway 10 corridor to assess and make recommendations on how the design theme could be coordinated with these development plans. 4. Preparation of two or three concept plans for a design theme along Highway 10, with attention to specific conditions in the corridor and illustrating both a formal and informal tream,e,r for the corridor. The design theme should include proposals for landscaping,lighting, signage,fencing, and street furniture as deemed appropriate by the designer. A suggested color scheme should be included. The design theme should also include details showing how the gateways at Silver Lake Road and Edgewood Drive, and the major intersections at Long Lake Road and County Road I wou treated. S. Perspective renderings or simulations of key locations in the Highway 10 corridor to • illustrate the visual impact of the design theme. 6. Attendance at least one ming with the Planning Commission and Economic Development Commission, and one meeting with the Economic Development Authority to present and discuss the design theme alternatives. Attendance at one community forum on the design theme. • • City of Mounds View-Request for Proposals Highway 10 Design Theme July 7, 1997 Page 4 ?ROJECT BUDGET: The budget for this project is not to exceed$10,000. SUBMITTAL REQUIREMENTS: 1. Description of firm's expertise and qualifications for the study. 2. Description and location of comparable studies completed or in progress. 3. List of key staff members that would be involved in the study. Include their roles, background and experience. 4. Proposed scope of work 5. Proposed work schedule to include completion daze. 6. Proposed detailed budget to complete the study. • 7. Description of final documents completed as part of study. Submit complete proposal no later than August 1, 1997 to: Pamela Sheldon OR Cathy Bennett Community Development Director Economic Development Director City of Mounds View City of Mounds View 2401 Highway 10 2401 Highway 10 Mounds View, MN 55112 Mounds View,MN 55112 612-717-4000 612-717-4000 612-784-3462 (FAX) 612-784-3462 (FAX) REVIEW PROCESS: Submittal Deadline August 1, 1997 EDC/Planning Commission Review/Interviews August 13, 1997 Recommendation to EDA August 18, 19 EDA Selection of Firm August 18, 1997 Contract Executed August 25, 1997 N.\D ATA\USERS\PAMSLSHARDSPECPROASP0439THwYlODES..RFP • CONSULTING GROUP , INC , • Transportation■Civil •Structural ■ Environmental•Planning•Traffic•Landscape Architecture■Parking August 1, 1997 2:1s. Cathy Bennett Economic Development Director CITY OF MOUNDS VIEW 2401 Highway 10 Mounds View, Minnesota 55112 Subject: PROPOSAL FOR PROFESSIONAL SERVICES HIGHWAY 10 DESIGN THEME Dear Ms. Bennett and Members of the Selection Committee: Development of design concepts for Trunk Highway 10 through the heart of Mounds View presents tremendous opportunities to improve the City's image, livability and vitality. The lack of a coherent commercial district along TH 10 has been a priority for City decision-makers, and • the corridor was the focus of the Section 9 Redevelopment Plan as well as a University of Minnesota design project. In this project, the City is seeking design alternatives that will articulate community character and present a unified, attractive image to both residents Mounds View and motorists passing •__ through the community. Two outcomes are expected: 1. The design theme developed should serve as a springboard from which future design standards can be derived. 2. Design theme elements should be integrated into current development projects prior to the formation of design standards. SRF Consulting Group, Inc. welcomes the opportunity to continue efforts to improve the visual and functional characteristics of the TH 10 corridor. Our past work with the City demonstrates that we have the skill, resources and enthusiasm needed to assist the City with this project. Several key objectives must be fulfilled to successfully implement meaningful improvements within the TH 10 corridor. These include: Design intent must be realistic with an implementation orientation. • A pragmatic assessment of existing conditions must be made to objectively evaluate corridor issues, opportunities and constraints. One Carlson Parkway North, Suite 150, Minneapolis, MN 55447-4113 Telephone (612) 475-0010 • Fax (612) 475-2429 An Equal Onnc,rfunity Fmnlrnwr Ms. Cathy Bennett - 2 - August 1, 1997 110 Creativity must be exercised to unify the corridor yet express the diversity of abutting land uses, architectural styles and community values. Maintenance and operation of future improvements must be anticipated and allowed for. An implementation strategy must be carefully articulated that prescribes the roles and responsibilities for City departments and other agencies to improve the corridor. Community involvement incorporation both public and private sector input is critical to establish a balanced perspective and buy-in to the master planning process. SRF has assembled a team of innovative, experienced professionals for this project. SRF has the broad staff skills, technical expertise and project experience demanded by the TH 10 project. Specific consultant team highlights include: SRF is familiar with the TH 10, Section 9 Redevelopment area: SRF had the privilege of working with the City of Mounds View for the Section 9 Redevelopment Plan, and we understand the issues that must be confronted in developing design concept alternatives as well as the opportunities the area affords. SRF offers a full-service project team: Our team represents truly multidisciplinary expertise, including landscape architecture, urban design, community planning, highway engineering, traffic engineering, transportation planning and public participation. This skill diversity is pivotal to responding to the wide variety of issues and interests represented by the TH 10 corridor. We have experience with similar projects: SRF has extensive corridor experience in design, operations and maintenance of highway and urban design elements. Our experience includes the Shepard Road design concept (which received an Award of Excellence MASLA); design of I-35E in Saint Paul, and Stadium Road in Mankato and Yankee Doodle Road in Eagan. SRF in known for a responsive public participation process: Numerous agencies and private sector interests must be given the opportunity to participate in the design concept development process. SRF has a reputation for inclusive and responsive public participation facilitation. Public input will serve as the basis from which the Economic Development Authority can make informed decisions and establish public policy regarding the TH 10 corridor. In addition, the participation will establish the foundation for public/private participation in the project implementation and cost sharing. SRF has an outstanding track record for meeting budget and schedule: Please check the references we list in this proposal to gain a better understanding of our experience and • performance in similar assignments. • Ms. Cathy Bennett - 3 - August 1, 1997 We are genuinely excited about the challenges and opportunities presented by this assignment. Please carefully review our proposal, including the Scope of Services, to fully understand the team approach SRF is proposing. We are looking forward to the opportunity to meet with staff and community decision-makers first-hand to discuss this project more fully. Sincerely, SRF CONSULTING GROUP, INC. Barry arner, ASLA, AICP Principal • Robert B. Roscoe,P.E., P.L.S. President BJW/RBR/smf • • Project Understanding For the traveling public, Trunk Highway 10 may be the only glimpse motorists gain of the City of Mounds View. The corridor also communicates an image of the City to Mounds View residents. Improving that image for both motorists passing through the City and Mounds View residents has emerged as a top priority for the City Council and the Economic Development Authority. Accomplishing this objective will require exploring land use and design issues, including opportunities for improving land use, corridor aesthetics, traffic function as well as facility operation and maintenance. The TH 10 corridor is a complex environment influenced by a wide variety of factors and operating elements. Nevertheless, a number of potential improvements can be made that benefit corridor image and elevate community identity. Five key subareas within the corridor that merit specific consideration are shown in Figure 1 on the following page and are described as follows: 1. Private and public sector architectural and site planning guidelines could be considered to improve the visual character of adjacent buildings and parcel development. To achieve the goals of encouraging higher quality development and strengthening the City's economic base by improving property appearance along TH 10, guidance should be given in areas such building massing,material control, signing, parking layout , outdoor storage and landscaping. 2. Right-of-way edge treatment and billboard control could be exercised within the highway space immediately adjacent to the right-of-way. This interface with the private sector parcel often becomes the focus for landscaping, buffering, commercial visibility and commitments to long- term ongiterm maintenance. 3. Mainline highway elements and intersection treatment includes the traveled lanes, median area, sideslopes,backslopes, drainage swales and intersecting roadways. Signing, Iighting, and other typical highway elements must adhere to design standards established by Mn/DOT. Maintenance and operations of these facilities play a key role in their appearance and durability when viewed by the public. The design development of"gateway points" at Edgewood Drive and Silver Lake Road must investigate TH 10 right-of-way development opportunities. • SRF Consuting Group, Inc. 1 • 4. Parcel access is especially important to the Highway 10 corridor, where adjacent businesses desire both visibility and access. A "ring road" concept defining the City's commercial core centered on Highway 10 may address opportunities to enhance community focus and improve access. 5. Land use, both existing and future, is an important ingredient to define edges adjacent the Highway 10 corridor. The City of Mounds View has received three major development proposals along the Highway 10 corridor since December 1996. Future visioning as to how the corridor will develop should take into account these developments and emphasize additional redevelopment opportunities to improve edge land uses and strengthen the corridor's economic vitality. The Highway 10 design theme study will address these basic areas in determining an appropriate design theme for the corridor. The design theme will provide a framework for future projects advanced by the City of Mounds View, other agencies and the private sector. Specifically, the design theme must: • • Serve as a precursor to future design standards to be formulated for the community guiding future site and development planning. • Establish a vocabulary of ideas and elements that current development proposals can incorporate prior to the adoption of formal design standards. The following images begin to identify specific issues and opportunities to be focused upon during the study. • SRF Consuting Group, Inc. 2 - zF .tk ^s�43r,i- 4t.,;!- -;,,,,,,.„ ,.:.,k.,.,..- --.5.,.--,..-,..� - \ d$ yaw 1_ .LYr [44 Ly iY . � i-,:C -"- _ \ • ...r - { .v ;c linti 1 \ 3rz�,, ( ( \\ . \ r'--:::!..^. 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Discussion: This task will serve as a"kick-off' from which additional analysis of the TH 10 Corridor study area can be completed. It is intended to provide baseline information and a further understanding of the study area's physical and functional characteristics. Baseline information includes: A. Base mapping for the study area will be obtained from the City of Mounds View along with other base mapping information. This will provide a working base map on which the project's remaining analysis, planning and design tasks will be completed. Air photo coverage will be requested from the City. B. Existing baseline information available from the City of Mounds View will be obtained. This information should include: • Existing zoning • Existing land use • Roadway characteristics • Traffic volumes and other pertinent transportation information • Previously prepared planning documents • Pertinent utility information • Other information as available that assists the consulting team in understanding physical, cultural and economic systems Product: Project base mapping, collection of pertinent background information and on-site review of existing physical and cultural systems. Client Responsibility: The City of Mounds View will be responsible for 4111 providing proper base mapping consistent with the project needs and requirements. The City will request Mn/DOT and Ramsey County to make available to the consulting team background information as described above. SRF Consuting Group, Inc. 9 Task 2: Visual Evaluation of Conditions Objective: To assess the issues, opportunities and constraints of implementing a design theme for the study area. To identify where there are no limitation, minor limitations and severe limitations on fitting design improvements. Discussion: This phase will evaluate the condition of properties fronting Highway 10. Attention will be given to type of land use,property condition, natural features, and amount of land available for implementing a design theme. Product: The information from the visual evaluation will be added to the project base map. Client Responsibility: The City of Mounds View will make available development plans on file with the City, aerial photographs, and Ramsey County drawings showing approximate building locations and structures. Task 3: Tour of City • Objective: To participate in a tour of Mounds View and of the study area to assess the character of the TH 10 corridor and the community's general image. Discussion: This task will evaluate the interface of the Highway 10 corridor within the City, adjacent developments and neighborhoods. The sketch plan for the Ring Road concept developed during the University of Minnesota design course will be reviewed. Existing and desired community image and identity will be a focus of discussion. Product: The information from this task will be added to the project base map within the study area. Client Responsibility: City staff will participate in the tour and will make available the sketch plan for the Ring Road concept. Task 4: Review of Development Plans Objective: To assess and make recommendations on how the design theme could be coordinated with existing development plans and proposals along the Highway 10 corridor. SRF Consuting Group, Inc. 10 • Discussion: This task will review the active development plans for sites in the Highway 10 corridor, including the three major private development proposals cited in the July 7, 1997 request for proposals. Product: This assessment will be reflected in the project concept plans. Client Responsibility: The City will provide development plans for proposed projects within the study area. Task 5: Concept Plans Objective: To prepare two concept plans for a design theme along Highway 10, illustrating both formal and informal treatments for the corridor. Discussion: This phase will provide two concept plans identifying two approaches to establishing a design theme for the study area. The concept plans will identify elements such as landscaping, lighting, signage, fencing, street • furniture and color schemes. Potential treatments for gateways at Silver Lake Road and Edgewood Drive and the major intersections at Long Lake Road and County Road I will be included. Product: Two corridor concept plans, each representing a different design theme approach, will be provided in colored, illustrative formats. Client Responsibility: Review and comment on the consultant's work products. Task 6: Perspective Renderings/Simulations Objective: To prepare perspective artist renderings and computer imaging of key locations in the Highway 10 corridor to illustrate the visual impact of the design theme. Discussion: This task will include the development of two hand-rendered perspectives and two computer-imaged simulations of the proposed design themes. Product: Two hand-rendered perspectives in colore and two computer simulations in color. Client Responsibility: Review and comment on the consultant's work products. SERF Consuting Group, Inc. 11 • Task 7: Meeting Attendance Decision-maker and community involvement is key to this study obtaining "buy- in" and its contents and conclusions reflecting community values and priorities. Three meetings will be attended as follows: • Planning Commission/Economic Development Commission • Economic Development Authority • Community forum or open house on the design theme The community forum should be a workshop facilitated by the consultant for the purpose of stimulating public thought on community image and identity. • S SRF Consuting Group, Inc. 12 -s=u q Tri ' . ��FE y fi . • ... ----..___.,,,...:--;-,-.--._ F-dt. rm.- 1} -M� ,,y fY'M tom--'. re' 1 O z * F 40 ,.. o , . f LL� V z W . E- Q V O W 03 ESw cn Ai (J i ti O r O ,: o . O 03w ._ n y .1.+ P. ZO Z g v •� 512 O - r O G 2 O r. z m `-� y O o O m > > U Q > cn V O 7.= >• - .ad i'..A x > EN. U 2 ^.. Q U QE-, .-- cV Cr) di n 'ZIP 1 5 r^ V iI _ _.•.,......:„...3.,.,.,,,,.._„„t........_ :_,. _.t _ w 0 • z a M a Y J rn cern u00'1 m N co U) co H O 63 4 630 H N CD N^ CD V' in 0 .irin N- N 11 Z 7 CD_ C1 Q ! 49 C II I 7 '- 11 0 1 II N Iii I : -I O O 0 0 0 N 0 N 0 0 ID O U 4 CC 0: U 0 w ? 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Cr 0 Creative Solutions for Land Planning and Design • ©© Hotsington Koegler Group Inc. KI® August 1, 1997 Ms. Pamela Sheldon, Community Development Director City of Mounds View 2401 Highway 10 Mounds View, Minnesota 55112 RE: Proposal for Highway 10 Design Theme Dear Ms. Sheldon: Hoisington Koegler Group Inc. is pleased to submit this proposal for creating a design theme for the Highway 10 Corridor in Mounds View. This project represents a great opportunity to improve the corridor's aesthetics and for the community to announce itself, but it is also a way of defining Mounds View in ways that are compelling and meaningful to the community. Though subtle, there are patterns and landmarks here that can lend an image and identity unique to Mounds View. This must be the goal of such a project; to mimic another community's well-designed corridor only diminishes the qualities and character of your community. 110HKGi has been involved with a number of corridors in suburban communities and we have found a growing desire to establish "gateways" as a way of marking points of entry. The Highway 10 corridor has no discernible points of arrival, and no apparent structure to provide identity for Mounds View. One moment you are in Mounds View, the next you are not; development seems to simply blend communities together so that one place looks very much like another. We would aim to create a design theme that is a part of the Mounds View community -- a part of this place. This project presents an opportunity to reflect the spirit of the Mounds View community in a very direct way -- a way that touches every driver on Highway 10 and every resident of the community. But to make it an accurate reflection, the people of the community must be involved. Community involvement is one of the hallmarks of HKGi, and the insight that can be gained through the process of talking to people will be critical to the success of this project. Please call me if you have any questions you might have regarding our proposal. We look forward to meeting with you to discuss the project further. Sincerely, Hoisington Koegler Group Inc. lifittategifigt.4--.. OM Schroeder Vice President 7300 Metro Boulevard.Suite 525.Minneapolis.Minnesota 55439 (612)835-9960 Fax(612)835-3160 Background and Qualifications Hoisington Koegler Group Inc. was established in 1982 with a practice that focused on urban and regional planning. Since 1 then, additional disciplines have been added, and the firm has evolved to the point where most projects are related to landscape architecture and urban design. HKGi currently has a staff of seven landscape architects and two urban planners. HKGi has established a reputation for excellence in concep- tual design, detail design and community, land use and environ- mental planning,including projects related to corridor design and streetscapes. Recent and current projects with similar issues and goals as the Highway 10 corridor project include: • Gateway Corridor Design Concepts; Champlin,Minnesota • Highway 10 Corridor Study;Elk River,Minnesota • Larpenteur Avenue Streetscape Study; Falcon Heights, Minnesota • Brooklyn Boulevard Streetscape Design; Brooklyn Park, Minnesota • Streetscape Framework Plan; Russell, Kansas • Riverfront Pathway along the Mississippi River, Elk River, Minnesota • Downtown Redevelopment Strategy; Hugo,Minnesota • Little Canada Road StreetscapelRice Street-Little Canada Road Area Redevelopment Study; Little Canada,Minnesota • Old Highway 8 Corridor Study;New Brighton,Minnesota • Mound Visions; Mound, Minnesota In each case,the design resulted from an understanding of the intrinsic qualities of the community,drawing from historical,cul- g tural and natural patterns and context for clues to the most appro- 1 priate design. The result is a unique design with meaning for each community. T Critical to the success of each HKGi project is the participa- tion of the community. We believe that without the local knowl- edge that City officials and residents provide, no amount of pro- fessional expertise will yield a wholly satisfactory solution. HKGi Hoisington Koegler Group Inc. ®® Page • is a leader in the use of a consensus building approach that blends the creativity of the public and decision-makers with the professional design and planning expertise offered by our staff. HKGi's ability to successfully complete projects stems from an emphasis of linking plans with clear implementation strategies. We do not like to see our plans sit on a shelf; we want to see them implemented and used by our client communities. A part of our work includes sessions with clients to strategize appropriate meth- ods for making the plans become reality. The Highway 10 project should allow Mounds View residents to become directly involved in the process of creating the solution. It should offer the opportunity to utilize both professional exper- tise and local knowledge in a process that challenges the commu- nity to better understand the corridor,its unique influences,and its • ultimate potential for telling a story of the Mounds View commu- nity. Hoisington Koegler Group Inc. brings unique skills and ex- pertise to the task of creating concept designs for Highway 10 corridor. The firm has considerable background in corridor plan- ning and streetscape design, and has developed practical methods of involving the public and communicating design ideas. By blend- ing our experience with the interests of residents,there is no doubt that exciting, unique and meaningful solutions can be created. • Hoisington Koehler Group Inc. page 2 Understanding . Based on discussions with Pam Sheldon and investigations of the Highway 10 corridor in Mounds View, we have gained a basic understanding of the project and the City's goals for enhancing i this area. Our understanding of the project includes the following: I f • The project area stretches approximately one mile along Highway 10 between County Road H2 and Silver Lake Road, embracing an area that has been defined as the core or"heart" .. Iof the Mounds View community. f 1 • The corridor is currently a mix of development types and uses interspersed with pockets of"nature." The passage fromArden k Hills and New Brighton to Spring Lake Park and Blaine through I Mounds View appears rather unremarkable and undistinguished from neighboring communities. There is little sense of this corridor belonging to Mounds View. • • The goal of this project is to define enhancements that lead to a stronger sense of place for the core of the Mounds View community. Key issues include the creation of design elements that reflect the character of the larger community and the definition of Highway 10 as a"seam"rather than a barrier. • Corridor enhancements and specific design improvements would focus on the frontage of Highway 10 parcels, with consideration of land use, site features and existing development, and available land. Development activity has continued as the City considers a design theme, but individual developers have expressed respect for the City's goals for enhancing the corridor. • A limited amount of public involvement is defined in the request for proposal: HKGi would encourage the identification of a focus group to guide the process and provide critical insight as • themes are considered. Hoisington Koegler Group Inc. ©© ©® 1 page f 3 • • A schedule for the project has not been defined,but should be structured to allow for refinements to the design to occur over the winter and implementation of priority enhancements to in the spring of 1998. • Hoisington Koegler Group Inc. page Approach fill) Overview... An approach to this project must be organized to build an un- derstanding of critical issues and community desires, and to de- velop a plan that responds creatively. Involvement of the commu- nity is the key: if the concepts developed for the Highway 10 cor- ridor are to have meaning to the community,it will be as a result of the local knowledge provided by residents. This process places people at the forefront, making them part of the initial investiga- don, providing ways for them to evaluate ideas throughout the project,and strategizing methods for them to be involved through- out the process of implementing any enhancements. Participation, for this project, would involve a focus group composed of repre- sentatives of City Commissions and the community. The transfer of ideas between the community and the consult- ant happens best in a workshop environment. The consultant comes into a workshop session with ideas in a formative stage,and modi- fications occur with direct input from those attending. The session becomes one of learning and growth,rather than presentation and reaction. There can be more formal presentations at the end of the process;in the beginning,the emphasis should be on sharing ideas and developing strong,meaningful concepts for corridor enhance- ments. People are generally busy,and even dedicated individuals have demands on their time that take away from worthy efforts. In this project, we need to have people participate in the process. We intend,therefore,to make very good use of the time they will share, and to make the process rewarding and fun. As we expect the community to provide information to us,we must translate that information into ideas. We need to listen, and then seek solutions that build from the input provided, not a solu- tion that might have worked in another city. Once concepts have been generated and put into a form that can be understood, the community will be asked to evaluate the concepts. In the end,one concept will evolve that best respects the opportunities of the cor410 - ridor,the desires of the community, and the qualities of the place. Hoisington Koegler Group Inc. ©® page 5 a - S It is important that the project not end at this point. We do not intend to create a "paper plan"—one that looks great but never happens. Our intention is to work with the City to strategize meth- ods for implementation—defining the next steps in the process, and the timing,funding and priority of ideas that have been gener- ated. The approach described below is based on our understanding of the project to this point. It is intended,therefore, as a guide; it can be modified to more directly address the needs and concerns of the City of Mounds View. • Identify what exists_ This corridor, while it may seem like many others,has forces influencing that make it different, or that will cause different de- sign responses. Every piece of ground is unique, and our goal in looking at what exists is to uncover the patterns that make it unique. Once those patterns are recognized and understood, the task of developing corridor enhancements that are meaningful and appro- priate to the community can begin. Through the work of this stage, we hope to identify the elements that will build identity from the underlying character of the area. We have found it useful to tour the project area and the sur- rounding community at the beginning of the project, with local experts as tour guides. Often we gain a level of information through this kind of a tour that cannot be gained through study of maps and reports. While some information might be anecdotal, it usually proves to be most valuable. HKGi will review existing background information provided by the City. City staff would be interviewed about issues affecting the corridor, and current or anticipated projects that might affect the corridor. HKGi would also interview the focus group to gain a historical perspective or a view of Mounds View's future;knowing how the community has evolved and how the it envisions its future may provide insight to appropriate themes. Information provided Hoisington Koegler Group Inc. page S by the City and other local sources would be considered quantitative -- a critical balance to insight gained through Workshop One and the tour of the corridor area. HKGi will define where enhancements are possible given the limitations of existing development. A visual evaluation of the corridor would also be performed,concentrating on the definition of positive and negative corridor attributes. Land use, site and building conditions, natural features, view sheds, landmarks and other critical factors will also be recorded. A review of work per- formed by the University of Minnesota will be helpful in under- standing directions defined for the corridor to this point. The information learned would be summarized in graphics that depict opportunities and constraints present in the Highway 10 cor- ridor, providing the consultant with the foundation necessary for good questions to be asked of the community in Workshop One. • Understand what is desired_ As we begin to understand of the physical conditions of the Highway 10 corridor, we would begin to involve people from the community in setting initial directions for its enhancements. This will occur before any plans have been drawn, any commitments made, or any ideas discounted. At this stage, all ideas are valid. Through this part of the process, we gain tremendous information about the desired enhancements and insight into the values the community holds. The focus group will become the "sounding board" for the concepts as they are developed even before plans are drawn. Our experience has been that projects are more successful when the community contributes directly; they become invested in the pro- cess and become supporters of their plan. We are well versed in public participation processes,and feel it is an integral element of the success of our past work; we, therefore, welcome the partici- pation of the community through a focus group. Their efforts will • begin in earnest during Workshop One. Hoisington Koegler Group Inc. ©® page 7 0 We do not expect solutions at this point. Rather,we will rely on the participants to provide input about elements of the com- munity that they feel are significant,and to begin the dialog that is necessary for later exploration and evaluation. The process for involvement needs to be carefully crafted to keep discussions fo- cused,and to provide the consultant with the information needed to fully understand the Highway 10 area and the factors influenc- ing it. Workshop participants would work in small groups to respond to a series of prepared questions,and then to discuss their responses in a large group format. The workshop environment is one of energy, enthusiasm and possibility, and the consultant is given a wealth of information to carry forward into the design process. Our goal in working directly with the community during the work- shop is to understand the values held by the people of Mounds • View. The only way Highway 10 can be shaped to wholly reflect the community is to encourage their participation in this process. Explore what is possible— Initially,HKGi will consider a wide range of alternative solu- tions. We might consider solutions that are grand, bold or dra- 1 matic...or solutions that are more subtle,with the relationships to Mounds View only becoming obvious over time. Some solutions might structures... some might be more of the land. Some could be contained in a single small place...while others might be spread along the length of the corridor. It is only through exploration i that we will find the right answer. The right solution will not likely be the first one considered. HKGi will generate a number of possible solutions for evaluation in Workshop Two. Ideas may.be presented in a variety of forms, including drawings,illustrations,diagrams,plans,models or other agraphics. The focus group will be responsible for determining which ideas have the most potential — how well each idea• re- flects the character and spirit of Mounds View; which ideas have the best chance of being supported by the community and agen- EEO 11111 Hoisington Koegler Group Inc. • cies beyond the local community; and which ideas are the most unique. They will be asked to guide the consultant toward corridor elements that best fit the community. The alternative (or a combination of aspects of any of the alternatives) that workshop participants feels is the most appro- priate and best reflection of the community will be refined into a final concept design. Estimates of costs will also be defined as a part of this stage of the work. The final concept design will be presented at the end of the process in a community presentation. Define the Next Steps... The intent of this process is to a create acceptable, unique and meaningful design concept for the Highway 10 corridor in Mounds View. But to this point,there is only a concept. In order to move forward,HKGi would define the responsibility and pro- cedures for each element of the enhancement program;that is,we • will describe whether the enhancement is to be accomplished by the private sector, the City of Mounds View, another jurisdiction outside of the city,a local service group or organization,or some combination of public agency,local groups and individuals. We will determine the level of design or review that will be required to ensure the accepted concepts are followed. This will provide for consistency in the development of an image, and continuity with the community's vision for the Highway 10 corridor as de- fined through the focus group process. As a final step in the process,HKGi will work with city staff to set priorities for various enhancements, strategize funding op- portunities and develop a timeline for implementation. rt The products of this project will be a series of drawings, il- i lustrations, diagrams and other graphics that portray the possi- bilities for Highway 10 corridor enhancements. The emphasis will be on communicating the qualities of each element,and how individual elements work to reinforce the image and identity of 410 Hoisington Koegler Group Inc. ©® page 9 'j{ • the Mounds View community. A summary report will be assembled that demonstrates the process, including the focus group input; -rr phics demonstrating the design concepts;workshop summaries; .rsL next steps for moving toward implementation;and the priorities, funding opportunities and timeline. • , HKGi will make a formal presentation of the design concept and implementation strategy to the community at the end of the process. This will allow for the results of the work to become truly public. Meetings with City boards and Commissions will then be j$ held to allow the City to officially consider the design theme (in the context of public evaluation through the complete focus group and community presentation process). i 1 B 1i41) f' I i it 1 ' 1 i •i ©© Hoisington Koegler Group Inc. NMI • Schedule and Fee The schedule for the Highway 10 corridor project should be established to allow the best possible participation from the com- munity. The schedule, as described generally below, should ac- commodate maximum participation. If the schedule is extended, holidays may limit participation. Therefore, the schedule for in- volving volunteers and City officials should respect the holidays and prior commitments while encouraging their full participation. Although HKGi is open in terms of schedule for this project, we suggest a schedule as described below be pursued. 6. 6. ti a) E .o C tO 03 o o a .o rn 0 Z A •=� w I Identify III what Explore Define exists... what the Plan for implementation... Beginway Understand is next implementation... what is possible... steps... desired... r 1 I I 1 1 11 0 11 These target dates would provide focus group participants with adequate notice of meetings, and allow implementation of some i aspects of the enhancements beginning in the spring of 1998. The dates are proposed as a guide; a final schedule would be created with input from the City. • Hoisington Koegler Group Inc. ©® EMpaI 13 • Based on our understanding of the project, the use of a focus group for public participation and a basic knowledge of the site corridor image issues,Hoisington Koegler Group proposes to perform the work described above for a fee not to exceed$10,000, including expenses. HKGi has determined this fee in accordance with the project approach described above;it can be adjusted based on further discussions with the City. A breakdown of the project fee according to major tasks is as follows: Task 1.0 Identify what exists $2,150 Task 2.0 Understand what is desired $ 510 Task 3.0 Explore what is possible $4,840 Task 4.0 Define the next step $2.220 Fee $9,720 Expenses $ 250 Total $9,970 E3Hoisington Koestler Group Inc. 6 111 page