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HomeMy WebLinkAbout2007.02.20 EDA Packet r AGENDA CITY OF HUGO CITY COUNCIVEDA MEETING TUESDAY, FEBRUARY 20, 2007 - 9:30 AM HUGO CITY HALL 9:30 am 1. Call to Order 9:31 am 2. Roll Call 9:32 am 3. Approval of Minutes EDA Meeting of January 16, 2007 9:35 am 4. Discussion on Kidz Place Rental Space • Deanna Hudella—Kidz Place • Diana & Chakib Benzakour 9:50 am 5. Review of TIF Policy and Plan • Paul Steinman and Mikaela Huot (Springsted) 11:30 am 6. Adjournment BACKGROUND MEMO FOR THE EDA MEETING OF Tuesday, February 20, 2007 3. Approval of Minutes EDA meeting of January 16,2006 City staff recommends that the EDA approve the minutes for the January 16, 2007 EDA meeting as presented. 4. Discussion on Kidz Place Rental Space On September 14, 2006 the City Council approved a site plan for Kidz Place Child Care Center located at 5448 Forest Boulevard North. The building includes a daycare and two spaces for office rentals. The owners of Kidz Place have been approached by the owners of Tasty Asia in Wyoming, MN to possibly acquire both of the spaces for their restaurant. Tasty Asia is a take-out and dine-in restaurant with a bakery. The property is zoned Residential Service and restaurants are prohibited by the ordinance. The owners of Kidz Place feel this use will be compatible with the daycare, the surrounding residential services and the residential areas. Staff agrees with the owners and has been researching this issue for the past week. The property owner and the owners of the restaurant will be present to discuss bring this business to Hugo. The Staff will present options for the Council and EDA to consider at the meeting. 5. Review of TIF Policy and Plan Paul Steinman and Mikaela Huot will be at the meeting to present the TIF policy and plan to the City Council and EDA. They are requesting input from the EDA and Council on the policy and plan for finalization of the documents. Staff has attached the TIF policy and plan for the City Council and EDA's review. MINUTES FOR THE EDA MEETING OF JANUARY 16, 2007 EDA Vice President Phil Klein called the meeting to order at 9:30 am. PRESENT: Jan Arcand, Jim Bever, Tom Denaway, Mike Granger, Phil Klein, and Fran Miron City Administrator Mike Ericson, CD Director Bryan Bear,Associate Planner Rachel Simone ABSENT: Brian Thistle APPROVAL OF MINUTES EDA MEETING OF DECEMBER 18,2006 Granger made motion, Denaway seconded, to approve the minutes for the EDA meeting of December 18, 2006 with the change of members absent. All aye. Motion carried. UPDATE AND DISCUSSION ON TIF DISTRICT Staff has completed the necessary tests to determine if the proposed TIF District will qualify. The proposed TIF District will qualify and has met the coverage and building inspection tests as outlined in Minnesota State Statutes. Staff attached a map of the proposed TIF District. Staff has been working with the TIF Subcommittee and Springsted to develop details for the policy and application for the entire TIF District. The policy includes requirements for a development to meet before it can qualify for TIF. Attached to the packet was the draft TIF policy that was revised by the subcommittee and Paul Steinman from Springsted. The TIF application is a process by which the City can evaluate a project to see if it will qualify for TIF. The applications will be graded by completing the application review worksheet. From the evaluations of the worksheet the city will determine if the project qualifies to receive TIF and the term the project will receive. Staff has been working with the TIF Subcommittee to develop a plan for the downtown to include what the EDA would like to see in the area along Egg Lake. Staff attached a map of the area across from City Hall and along Egg Lake to help demonstrate the area we have potential to work with. The EDA discussed what kind of development they would like to see in the downtown area. The next step in the process is to schedule a public hearing at a City Council meeting within the next couple of months. This will provide the public a chance to present feedback to the City Council about the TIF District. Associate Planner stated that the tests do meet the qualifications to establish a TIF District and introduced the TIF policy to the EDA for review and comments. She stated that the policy needs to be reviewed and input from the EDA will help staff revise the policy to reflect what the EDA would like to see for the TIF district. Granger talked about the qualifications and asked what the difference between a redevelopment district is verses an economic development district. Denaway explained that an economic development district is basically used for industrial parks. The EDA evaluated the TIF application and the review worksheet for projects submitted to the City. Miron stated that the job creation and wage expectation needs to be reasonable for this area. Miron talked about the review worksheets point system in regards to the use. He stated that mixed-use should be as important as the office/commercial. Bever stated that housing should be a bit lower also. Granger and Denaway agreed with both. They want staff to look at this portion and change the point system. Denaway talked about the terms for TIF monies from the first year to the fifth. Miron talked about the properties that the City would like to redevelop and that we need to make sure we are ready to go ahead with the TIF district establishment. Associate Planner talked about the Egg Lake properties that the City owns and the redevelopment possibilities of that area. CD Director talked about the Holmgren property being in the middle of the area and that it may be an important piece to acquire if we can not work around it. CD Director asked if staff should go ahead with the establishment for the TIF district or should staff hold off for a little bit. Everyone agreed that staff should go ahead with the next steps to establishing the TIF district. Miron stated that he would like to know if there is an easement behind Carpenters Restaurant that abuts Egg Lake. CD Director stated that the first properties that he imagines would redevelop first are the Carpenters and the End Zone properties. Klein asked what steps the City needs go through now that we know our proposed district will qualify. Denaway stated that it would have to go to the City Council for a public hearing and then the City could certify the district. Granger asked if there was a time limit from the public hearing to the certification of the district. CD Director stated that the staff will check if there is a time limit between the two. Bever and Klein both asked if staff has been aggressive enough in acquiring the Egg Lake properties. CD Director stated that we have been acquiring them as they came on the market and staff has talked to all the property owners in that area. Granger stated that the City should not actively go out and offer to buy property. Granger stated that we need to get a marketing and promotional plan for the TIF district so people can see what we have to offer. Arcand stated that we need to keep our push on downtown redevelopment and make sure the City takes into consideration the expansion that could happen on Highway 61. CD director stated that staff will work on a marketing plan and that there is a working group for the expansion of Highway 61. Miron stated that on one of the next agendas the expansion of Highway 61 should be a discussion item. Bever asked if the rush line corridor would be a problem with the expansion. Granger stated that the corridor will most likely be federally funded and could be a long time from now. Miron made a motion, seconded by Denaway, to recommend the City Council to hold a public hearing for the TIF District around March 19, 2007. All aye. Motion carried. UPDATE ON DOWNTOWN MASTER PLAN FOR CONCEPT CHANGE AT SOUTHWEST CORNER OF COUNTY ROAD 8 AND HIGHWAY 61 At its March 15, 2006 meeting the EDA made a recommendation to staff to look at having more office on the downtown plan for the southwest corner of County Road 8 and Highway 61. Bryan Bear has been working with Carolyn Krall from Landform to develop a new plan for the area. Staff attached a revised plan that includes office buildings and requested comments from the EDA. Staff attached the Hugo Downtown Plan and Design Guidelines for the EDA to review. Denaway asked how the new concept relates to the Maxfield study. CD Director stated that this concept that includes more office and commercial would be consistent with the study and that including some residential may still be appropriate. Bever stated that he likes that idea of more office. All EDA members were favorable of the new concept. Miron made a motion, seconded by Arcand, for staff to prepare the final version of the downtown plan to formally adopt the guidelines. All ayes. Motion carried. HUGO BUSINESS ASSOCIATION UPDATE The Hugo Business Association(HBA) launched their website in December just before the New Year. Visit the HBA website at www.hugobusinesses.com. City Administrator, Mike Ericson, attended the HBA's January 9, 2007 meeting and updated the EDA on the City's involvement with the HBA. EDA 2007 GOALS Staff attached the EDA Goals for 2007 for the EDA to review. The EDA talked about the northern gateway being an important goal. ADJOURNMENT Klein made motion, Arcand seconded to adjourn the meeting at 11:30 am All aye. Motion carried. MINUTES FOR THE JOINT COUNCIL/EDA MEETING OF r FEBRUARY 20, 2007 EDA President Fran Miron called the meeting to order at 9:40 am COUNCIL: PRESENT: Frank Puleo, Mike Granger, Fran Miron, Becky Petryk, and Chuck Haas EDA: PRESENT: Jan Arcand, Jim Bever,Tom Denaway, Mike Granger, Phil Klein, and Fran Miron City Administrator Mike Ericson, CD Director Bryan Bear,Associate Planner Rachel Simone ABSENT: Brian Thistle APPROVAL OF MINUTES EDA MEETING OF JANUARY 16,2007 Granger made motion, Klein seconded, to approve the minutes for the EDA meeting of January 16, 2007. All aye. Motion carried. DISCUSSION ON KIDZ PLACE RENTAL SPACE On September 14, 2006 the City Council approved a site plan for Kidz Place Child Care Center located at 5448 Forest Boulevard North. The building includes a daycare and two spaces for office rentals. The owners of Kidz Place have been approached by the owners of Tasty Asia in Wyoming, MN to possibly acquire both of the spaces for their restaurant. Tasty Asia is a take-out and dine-in restaurant with a bakery. The property is zoned Residential Service and restaurants are prohibited by the ordinance. The owners of Kidz Place feel this use will be compatible with the daycare, the surrounding residential services and the residential areas. Staff agrees with the owners and has been researching this issue for the past week. The property owners and the owners of the restaurant will be present to discuss bringing this business to Hugo. The Staff presented options for the Council and EDA to consider at the meeting. The owners of Kidz Place, Deanna Hudella and Don Hruby, and the owners of Tasty Asia, Diana and Chakib Benzakour, were present at the meeting to give a short presentation and to answer any questions. Bever asked about the size of the proposed restaurant compared to the current one in Wyoming, Minnesota. Diana stated that the proposed restaurant is larger than their current restaurant. Klein asked about the parking and whether they could accommodate to what is required by ordinance. Deanna stated that they have been researching the parking situation but it will have to be worked out with City staff. Miron asked if the impervious surface has been calculated for any new pavement that will be on site for parking. Deanna stated that their architect has done some preliminary calculations on the impervious surface and they feel they will be under the required amount. Bryan stated that the parking will have to be worked on at a later time and needs to be figured out before we get too involved in the process. The issue today is the ordinance change. Denaway stated that a restaurant that does not serve alcohol would be a good fit and the surrounding zoning is residential service. Granger agreed that it would be a good fit but the parking is a big issue. He also asked about the odor from the restaurant to the daycare center and the surrounding properties. Deanna stated that the owners of Tasty Asia have talked about that and will make sure that the ventilation equipment will reflect this issue. Arcand stated she is hopeful for a restaurant in Hugo. Klein agreed that it is a good fit,but parking is an issue that he thinks can be worked out between the owners and the City. Granger made a motion, seconded by Klein, to recommend that Council authorize staff to draft an ordinance amendment to allow a restaurant use in the Residential Service Zoning District. Granger made a motion, seconded by Klein, to amend the first motion to include that the City Council look at other options that were outline in the staff report as examples of solutions. Miron stated that the council has reviewed the other options at this meeting and that this one does seem to be the best option. All nays. Amendment failed. Klein made a motion, seconded by Granger, to recommend that Council authorize staff to draft an ordinance amendment to allow a restaurant use in the Residential Service Zoning District. All ayes. Motion Carried. REVIEW OF TIF POLICY AND PLAN Paul Steinman and Mikaela Huot were at the meeting and presented the TIF policy and plan to the City Council and EDA. They requested input from the EDA and Council on the policy and plan for finalization of the documents. Staff attached the TIF policy and plan for the City Council and EDA's review. Haas asked about the public improvements and whether districts revenues pay for them. Paul Steinman stated that some would be paid with it and some would not. Each project will be reviewed individually to see if it is needed. Petryk asked if improvements were to happen on Highway 61 could TIF revenues be used. Paul Steinman stated that it could be used. Haas asked why the policy requires projects to increase the taxable value thrre-fold. Paul Steinman stated that this is a way to make sure that projects are up to the City's expectations. CD Director stated that the policy is a guiding document and changes can be made if it does not seem to work as well as we would like. Petryk asked about the terms. Paul Steinman stated that the City should plan for maximum flexibility. Mikaela Huot went over the TIF Plan with the Council and EDA. Haas asked with other districts did we not budget enough money within five years. Paul Steinman stated that we have researched how much revenue will be generated and then looked at how much we would need for public improvements. In addition, there will be annual monitoring. Mikaela Huot stated that they are still working through this issue. Miron talked about the boundaries of the district. Haas asked if they were set in stone as of now. Mikaela Huot stated that they are not set, but will be set at the public hearing on April 2nd, 2007. Arcand asked about the four year rule and if the property does not have a plan in can it be removed. Paul Steinman stated that is true, but it can come back in at current market value. Arcand talked about the importance of the timing of certification of the district. Denaway made a motion, Arcand seconded, to recommend adoption of the TIF policy. All ayes. Motion Carried. ADJOURNMENT COUNCIL: Hass made a motion, Granger seconded to adjourn the City Council meeting at 11:30 am Granger made motion, Bever seconded to adjourn the EDA meeting at 11:30 am All aye. Motion carried. Agenda Number CITY OF HUGO COMMUNITY DEVELOPMENT DEPARTMENT MEMORANDUM TO: City Council/EDA FROM: Rachel Simone, Associate Planner SUBJECT: Kidz Place Child Care Center Office Rental DATE: February 15, 2007 for the EDA meeting of February 20, 2007 1. OVERVIEW: On September 14, 2006 the City Council approved a site plan for Kidz Place Child Care Center located at 5448 Forest Boulevard North. The building includes a daycare and two spaces for office rentals. The owners of Kidz Place have been approached by the owners of Tasty Asia in Wyoming, MN to possibly acquire both of the spaces for their restaurant. Tasty Asia is a take-out and dine-in restaurant with bakery. The property is zoned Residential Service and restaurants are prohibited by the ordinance. The owners of Kidz Place feel this use will be compatible with the daycare, the surrounding residential services and the residential areas. Staff agrees with the owners and has been researching this issue for the past week. 2. ANALYSIS: Staff has researched other cities that allow restaurants in residential service areas. Most of them allow restaurants and some of them allow restaurants that serve alcohol. Staff does not think that a restaurant that serves alcohol will be a good fit in the area because it may disturb the residential neighborhoods. Also a drive thru restaurant may not fit in the area either because of the stacking of cars and the noise from the speakers. The Tasty Asia restaurant is not a drive thru and will not serve alcohol. The other issue besides the zoning with the restaurant use occupying the space next to Kidz Place is the parking. When the Kidz Place site plan was approved the rental space was proposed to be office. The parking was calculated by the requirements for an office use. Restaurant parking is calculated by the square footage of dining area and requires more parking than an office use. With the daycare and the proposed restaurant in the building, the requirement for parking would total 83 spaces including an area for outdoor dining. The site currently has 45 parking spaces. The issue of parking needs to be addressed before the restaurant could be allowed. The property e Page 2 does have some space on the eastern portion of the site to include additional parking,but needs to be researched to make sure there will be adequate parking for both uses. It is in staffs opinion that the City's parking code requires an unusually high number of spaces for restaurants, and is another ordinance that could be changed to better encourage businesses of this type. 3. EXAMPLES OF SOLUTIONS: The City Staff has recognized the request and has come up with possible solutions to the issue. 1. The City could revise the zoning ordinance to allow a restaurant use in the Residential Service district with the restriction that alcohol could not be served and to prohibit drive thru restaurants. 2. The property could be rezoned to a commercial district to allow the restaurant use with a conditional use permit for the daycare facility. 3. The owners of Tasty Asia are encouraged to expand their business in an alternate location with appropriate zoning. 4. CONCLUSION: Staff recommends that the City Council and EDA review this issue and provide direction to staff. ATTACHMENTS: 1. Location Map 2. Kidz Place Site Plan 3. Business Profile for Tasty Asia 2 w t 40 f _ ... Mu C boo Im . .,..�Y,.,..�.,s...- u.. ,�...,� ...r�:. .. - 4 am fol ® ' 14tv )1 ✓+ " -d �s � _' _ iii •� � • 1 ^ rr�eslSro��s TREE & SHRUB LEGEND Quantil SYmocl _ix Common Name 7an La:I...T_ dower Fbwror _ ®mtn Tane _ Cobr Fra�ance N iATf J-J A S: '14 tots DECIDUOUS TREES 3 A 'cal Red J Crapappk 9 a 3-v! Red Das a 2 e 2"cal Japanese 6te ldx =,mga:ele.:m:n wnrte re, _-_ 15 lora IEVERGMEN TREES Ngp Noway Sp..., !30 rota DECIDUOUS SHRUBS E 2'Pot Fragrant G,o —Sumac j 10 F 5-Pot Anthony Waterer Spree Se ca.Cxn.NJa'Y:non;N��.•.r' `� ! 5 G 5"Wt flats'Vdaw.wm ::tum,tn;.vpCwn-aAa^+ _ream rw 1-' t i !7 Feta _ EVERGWIN SMJRS . . . . . . . �?_—H...._S'_poi.Blue!ryIl.F-"—.. pd}1 I PLAYAREA 1 PLAY AREA FENCED FENCED 1 1600 S.F. 1 4 1—SF. Iw4r 8 I I D D D t., Im o s f'Si . .. •GRCLND e"U uK.DNG PLAYAREA ASF: LUTING LT ,oTHuI t f•- 1 J FENCED S OPTIONAL ENTRANCE. ' B PROJECT: PAR T® H F • •G r- • :; OQ Dsu Chd&are 13 k 1a1.C.i1-VAN M.C. CONTRACTOR:' 1 IaIN PARKING 217''-' 2264 PINT Q-t MIPMaeP4 mm'$I1 0 si10 Tdoph—651-702-1444F=651-702.1444 �' } —��ARKNG LGT c L,GHT F&E � c a Charles A. West Architect A — 'R-- — REMELY ARCHITECTS-& 256.82 22-01 7Ta' A ARDIMM APPROX_LOCATION `---� EX'ST.CURBCUT. I C.L.140TH ST.NORTH ! SITE PLAN-SCHEME 2 N RECEIVED cana�T zoos 9v tfac�•AxwTcls.rHL caxlfms«r:>G 1'•2a 45 PARKING STALLS PouacNr ant Foe TwE s«E xo dblW'f Iaf or 7aL moAcr aro vn ioFNnePRFn�a.f w..oTxfn usL tnt setAa:.u• MRweiRPT T1f Mi<MRLT 6 PaONHRD. A 2006 ` , CASE # C O� 1 DA ATE PROJECT NO, 0&31/06 26- 09.'07/06 P aX BUSINESS OVERVIEW TASTY ASIA RESTAURANTS WYOMING, MN HUGO, MN r4L 1% Nos � ' �M. MiYtiii r o f Prepared By: With Assistance From: DIANA & CHAKIB BENZAKOUR MEDA Business Consulting 26685 Faxton Ave SCOTT OCHSNER Wyoming, MN 55092 Commerce at the Crossings (651)462-1200 2502 ND Avenue South, Suite 106 Minneapolis, MN 55401 (612) 259-6574 JANUARY 2007 BUSINESS PROPOSAL FOR TASTY ASIA RESTAURANTS Table of Contents 1 - Executive Summary .............................................. 2 2 - The Market ............................................................. 2 3 - Service and Products ........................................... 3 4 Competitive Advantage ........................................ 4 5 - Management .......................................................... 5 6 — Proposed Site........................................................ 6 7 — Current Tasty Asia Take-Out (wyoming, MN)............ 7 Confidential Page - 1 - 2/16/200' BUSINESS PROPOSAL FOR TASTY ASIA RESTAURANTS 1 — EXECUTIVE SUMMARY Tasty Asia Restaurant is an expansion of our current restaurant Tasty Asia Take-Out in Wyoming, MN. We've had a successful 2 '/ years in Wyoming and feel that we have saturated the market in this area. The next logical step for us is to take Tasty Asia to a new location. We feel we have the tools, the knowledge and the recipe for success to duplicate Tasty Asia in Hugo, MN. We are confident with our abilities, work ethic and passion about Tasty Asia that we have developed a 3 phase 5 year expansion plan. Phase I will be to expand Tasty Asia in Hugo 2007. Phase II & III will be to open restaurants in affluent, growing communities with a need for Tasty Asia's products and services in 2009 and 2011. We research each city, before opening our restaurant to insure adequate demographic for and business / residential mix to insure a long term growth. Fresh good tasting, high quality Asian food along with superior customer service is what Tasty Asia is extensively known for. 2 — THE MARKET Tasty Asia Restaurant is perfectly located at the busy intersection of Highway 61 and 140th Street in Hugo, MN. This site is located in the building next to the Kidz Place Daycare Center. The market will be divided into three categories: 1.13usinesses 2.Families 3.Highway Traffic. We foresee lunch to be busy due to the existing businesses within a mile from the proposed site. There are many local businesses within the vicinity of the restaurant and as far as White Bear Lake, Forest Lake and Centerville. The dinner crowd will comprise of families-from all of the single-family houses and town-homes in the area. We feel we will also benefit from the families whose children are attending the daycare center and Highway traffic which will also bring in business due to the restaurant being located on the corner with maximum exposure from location signage. Confidential Page- 2 - 2/16/200' BUSINESS PROPOSAL FOR TASTY ASIA RESTAURANTS 3 — SERVICE AND PRODUCTS Tasty Asia will provide high quality, fast, fresh, healthy food- an alternative to other fast food restaurants. We use only the finest, high quality ingredients and all the entrees are prepared when ordered- not before hand. We offer gluten-free menu for customers with gluten allergies. What separates Tasty Asia from other Asian restaurants is also our in- house bakery. Our specialty is freshly-baked desserts. We make cakes, cheesecakes, Tiramisu, specialty tortes, organic cookies and brownies-all from scratch with no preservatives. We also offer specialty drinks such as Vietnamese coffee, Bubble teas and organic beverages. Tasty Asia is unique in that we have an online ordering system that was developed and is maintained by one of the owners-Chakib Benzakour. The customer can place their order, choose pick-up time, pay online using a very secure payment method, and just come in to pick up their order. No waiting needed. All orders are confirmed by phone prior to being processed. This method is extremely convenient for those customers who are very busy or are in a hurry. We see this as an advantage for the parents picking up their children next door at Kidz Place. Of course, customers can also order by phone for pick-up or order in person and enjoy the meal in our cafe. The decor is unique to Tasty Asia and will be replicated in all restaurants. Our colors were carefully chosen to give a warm, comfortable, relaxing atmosphere to our customers. Asian influences will be tastefully reflected in the overall decoration of the restaurant. Another feature of Tasty Asia that was very well received and appreciated by customers in our Wyoming location is our open kitchen. We believe that if the customer is able to see how their food is prepared; and see the cleanliness of the kitchen, then that will give them peace of mind and build a trusting relationship between customer and restaurant. Cleanliness will by synonymous with Tasty Asia. The kitchen, cafe, restrooms and patio will always be spotless. Anything less is unacceptable to Tasty Asia's high standards. Tasty Asia is already known for our excellent customer service- both on the phone and in person. We guarantee the customer a pleasant experience every time. Our employees are trained to be courteous and helpful to every customer. Creating a good working environment for our employees reflects in their positive attitude and service. Tasty Asia also offers catering to both large and small groups. All catering menus are customized to the customer's wants and needs. We feel every event is unique to the party, therefore having customers choosing items from a generic, pre-set menu will not fully serve the customers needs. Any event catered by Tasty Asia will be unforgettable. Confidential Page - 3 2/16/200 BUSINESS PROPOSAL FOR TASTY ASIA RESTAURANTS 4 — COMPETIVE ADVANTAGE Tasty Asia will gain advantage over our competitors by offering: ■ Great tasting, fresh, high quality Asian food ■ Superior customer service ■ Freshly baked desserts ■ Upscale clean, casual, relaxed atmosphere ■ Gluten-free menu ■ Online ordering ■ Located on the corner of a busy intersection-Highway 61 & 1401h St ■ Open 7 days a week ■ Experienced management ■ Tasty Asia name and logo is trademarked; and therefore easily recognizable ■ Consistency in food quality due to standardization of all recipes Confidential Page-4- 2/16/200' BUSINESS PROPOSAL FOR TASTY ASIA RESTAURANTS 5 - MANAGEMENT Diana Benzakour brings her culinary skills to the kitchen; having grown up and being exposed to the restaurant business. Her grandparents opened their first Vietnamese restaurant in St. Paul, MN in 1985. Her parents followed AM, with their own restaurant in St. Paul, MN near the state capital in 1991. Diana was constantly surrounded by good cooks in her family-grandmother, mother, and aunts. She went on to study Dental Hygiene at the University of Minnesota and graduated in 1991. She practiced dental hygiene for 13 years but felt the strong pull of the restaurant business like the rest of her family. Her passion is cooking, baking, and creating food items. She has many resources to turn to for guidance and advice. Diana is fluent in English, French and Vietnamese. Chakib Benzakour immigrated to Boston, MA in 1987. Not speaking a word of English, he started to work in the kitchen of Au Bon Pain as a dishwasher, where he quickly moved up the ladder within 6 months, from cashier to lead baker and finally assistant manager. While working at Au Bon Pain, Chakib attended Wentworth Institute of Technology - o where he obtained a Bachelor of Science in Electronics and Computer Technology. He then worked as a Sales Engineer from 1995 to 2003 at Electro Sales, Inc. where he headed the Management Information Systems department. He has experience and knowledge in the operation and management of a fast food service restaurant such as forecasting production, crew management, hiring, inventory management and ordering, sanitation as well as weekly profit and loss reporting and many other related tasks. His expertise in computer engineer allowed him to design the restaurant website and to update and maintain it, which is critical to the on-line ordering system. His other skills also include fluency in not only English, but French and Spanish as well. Confidential Page- 5 - 2/16/200' 0 0 N fV TAE AS �' _ �✓' CUL #-r �, EQUIPENT LIST F� ( 1 N0. EQUIPMENT MODEL NO. MANUFACTURE O - II f CHINESE RANGE STOVE 5-WOK (141"X45") GRANDVIEW '. 2 HOOD 31' LONG GRANDVIEW • b " v 3 DEEP FLYER (3) SG14 GRANDVIEW4___. IA i c a 4-BURNER RANGE GRANDVIEW F I 5 ! RICE COOKER (t) RER-55A RtNNAI 6 CONVECTION OVEN SLGS-12 SOUTHBEND d� _.•� ; I 7 RICE WARMER (1) THA-803 ZOJIRUSHI Q (C� 8 STEAM TABLE ST-010 GRANDVIEW - 9 • BAIN MARIE SP60-24M BEVERAGE-AIR W 10 3-COMP SINK 412-24-3-30 L&R EAGLE 111 t CAMP PREP SINK 412-24-1 EAGLE N 7 1121 MOP SINK 24"X24" BY PLUMBER 13,HAND SINK HSA-107 EAGLE Q C ((�� to SODA/10E DISPENSER OURAFL EX-750 BY VENDER � O d _ Lr�"' -_ 1 5,HOT WATER HEATER BTR-120 (71 GAL) 1 A.0- SMITH tp ® 16'CASHIER REGISTER v R' ro 17 SHELVES (METAL) CUSTOM _ *GRANDVIEW 99 A D1 C7 O , r� 1 ! 181 TWIN 3-CAL URNS FE-100-ELECTRIC ;CECILWARE fm J { 19 WORK TABLE (5.5.) CUSTOM GRANDVIEW 20-GREASE TRAP O ( 21 DISH WASHER MH-60 MOYER DIEBEL a i ' 221 DISH TABLES CUSTOM EAGLE O 231 WATER SOFTNER SEE PLUM81NC CULLIGAN aY a12a DESERT COOLER 77� 25 BEVERAGE COOLER W j 26 COUNTER AND STOOLS Z TRASH BIN ~ 28 SOUP RANGE_ 299'PACKAGING TABLE ;i C)` L p - o o ,�_c� FLOOR PLM f- tart' i 1 FLOOR PIAN 1 o- N a+ C CJ y,. C O U BUSINESS PROPOSAL FOR TASTY ASIA RESTAURANTS Current Tasty Asia Take-Out in Wyoming, MN 4 Ell y r� Confidential Page- 7 - 2/16/200'. c.� Springsted Incorporated 380 Jackson Street, SuiteN Saint Paul,MN 55101-289 Springsted Tel: 651-223-3000 Fax: 651-223-3002 www.springsted.com MEMORANDUM TO: Bryan Bear,Community Development Director Rachel Simone, Associate Planner FROM: Paul T. Steinman, Vice President/Consultant Mikaela Huot,Assistant Vice President/Consultant DATE: February 15, 2007 SUBJECT: Draft TIF Policy and TIF Plan For the joint City Council/Economic Development Authority meeting on February 20, 2007, Springsted will be discussing two attached documents including the draft Tax Increment Financing (TIF)Policy and draft TIF Plan. If the City Council/Economic Development Authority is comfortable with the last modifications to the TIF Policy,a would be appropriate to take action to approve such policy at this meeting. Otherwise, such action can be takent the same time as final action is taken on the TIF Plan. It is our intention to lead the City Council/Economic Development Authority in a discussion of the following issues relative to the review of a TIF Plan: • The purpose of a TIF Plan • The primary policy points relative to the TIF Plan o Fiscal Disparities o Pooling o Other • The TIF Plan budget o Estimated Public Costs o Sources of Revenues ■ Tax Increment estimates, assumptions • The remaining process of adopting a TIF Plan We will be available at the meeting to present these issues for discussion and address any questions you have at that time. Public Sector Advisors City of Hugo, Minnesota Tax Increment Financing (Redevelopment) District No. and Tax Increment Financing Policy Preliminary Time Schedule for Approval November/December 2006 Complete building inspections of properties within proposed boundaries of District November/December 2006 Analyze blight findings, y e final determine ep of District boundaries November/December 2006 TIF Subcommitibe�.!, 'eeting to review boundaries, disci 5,timeline and process tete December 2006 Draft ,IF Plan and TI Pq)icy 'PA, q uR January 16, 2007 City Ct cil calls fc) pii f /tae nng"for the TIF Plan to be held on Mare 49 Ap 200 r� � January 2007 Subco ee meeting—discuss what primary components should ded IF Policy On/Before Feb 7 County Commissioner receives notification letter 30 days prior to publication of notice of public hearing (Sent by SPRINGSTED) February 2 QQ7 Joint Council/Economic Development Authority meeting to review TIF documents and TIF Policy On/Before March 1, 2067 = County and School District receive impact letters &draft TIF plan 30 days prior to public hearing (Sent by SPRINGSTED) March 5, 2007 City Council reviews TIF documents and Policy(tentative) March 8, 2007 City Planning Commission reviews TIF documents (TIF documents provided by SPRINGSTED) (Resolution provided by Briggs and Morgan) 2/16/2007 .March 2, 200 Publication of notice of public he+g . Deadline: Marh14, 2007 10 3 days pro to public hering (Arrangementsmade by SPRINGS ED) April % 200 Ci Council holsd public he&$ and adopts resolutions establishing TIF District, passes resolution pprovng TIF Plic (Resolution provided by Briggs and Morgan) After Am $ 20 State filing and request for counylcrfifiA\for the TIF Dis d (Completed by SPRINGS ED) . § . R \�\ a s "Oe 2]&2007 City of Hugo, Minnesota Tax Increment Financing Policy & Application Adopted: Revised Minnesota Offices California Office Des Moines Office Corporate Headquarters 28137 Espinoza 300 Walnut Street 380 Jackson Street,Suite 300 Mission Viejo,CA 92692 Suite 215 St.Paul,MN 55101-2887 949.600.5330 Des Moines,IA 50309-2258 651.223.3000 949.600.5325 Fax 515.244.1358 651223.3002 Fax 515.244.1508 Fax Kansas City Office Richmond Virginia Beach 7211 West 98th Terrace 1206 Laskin Road,Suite 210 Suite 100 8790 Park Central Drive,Suite B Virginia Beach,VA 23451-5263 Kansas City,KS 66212-2257 Richmond,VA 23227 757.422.1711 913.345.8062 804.726.9750 913.341.8807 Fax 804.726.9752 Fax 757.422.6617 Fax Wisconsin Office 1110 North Old World 3rd Street Milwaukee,WI 53203-1100 414.220.4250 414.220.4251 Fax aduisors@springsted.com s J p r A n g s t e d Table of Contents POLICYPURPOSE...........................................................................................1 II OBJECTIVES OF TAX INCREMENT FINANCING...........................................1 III POLICIES FOR THE USE OF TIF.....................................................................2 IV PROJECT QUALIFICATIONS...........................................................................3 V SUBSIDE AGREEMENT&REPORTING REQUIREMENTS............................4 VI APPLICATION PROCESS................................................................................5 VII APPLICATION FOR TAX INCREMENT FINANCING.......................................6 Applicant Information 6 Project Information 7 Public Purpose 8 Sources& Uses 8 Additional Documentation 9 1 APPLICATION REVIEW WORKSHEET..........................................................11 IIEXHIBITS.........................................................................................................13 Exhibit A 15 Exhibit B 16 Exhibit C 17 Exhibit D 18 Exhibit E 19 Page 2 Sprngsted City of Hugo, Minnesota I. POLICY PURPOSE For the purposes of this document, the term"City"shall include the Hugo City Council and Economic Development Authority. The purpose of this policy is to establish the City of Hugo's position relating to the use of Tax Increment Financing (TIF)for private development above and beyond the requirements and limitations set forth by State Law. This policy shall be used as a guide in the processing and review of applications requesting tax increment assistance.The fundamental purpose of tax increment financing in Hugo is to encourage desirable development or redevelopment that would not otherwise occur but for the assistance provided through TIF. The City of Hugo is granted the power to utilize TIF by the Minnesota Tax Increment Financing Act, as amended. It is the intent of the City to provide the minimum amount of TIF at the shortest term required for the project to proceed. The City reserves the right to approve or reject projects on a case by case basis, taking into consideration established policies, project criteria, and demand on city services in relation to the potential benefits from the project. Meeting policy criteria does not guarantee the award of TIF to the project. Approval or denial of one project is not intended to set precedent for approval or denial of another project. The City Council and Economic Development Authority can deviate from this policy for projects that supersede the objectives identified herein. II. OBJECTIVES OF TAX INCREMENT FINANCING Tax Increment Financing (TIF) uses the increased As a matter of adopted policy, the City will consider using TIF to assist private development projects to achieve one or more of the following objectives: • To retain local jobs and/or increase the number and diversity of jobs that offer stable employment and/or attractive wages and benefits. • To encourage additional unsubsidized private development in the area, either directly or indirectly through "spin off" development. • To facilitate the development process and to achieve development on sites which would not otherwise be developed but/for the use of TIF. • To remove blight and/or encourage redevelopment of commercial and industrial areas in the city that result in high quality redevelopment and private reinvestment. • To offset increased costs of redevelopment(i.e. contaminated site clean up)over and above the costs normally incurred in development. • To create opportunities for affordable housing. Springd Page City of Hugo, Minnesota • To contribute to the implementation of other public policies, as adopted by the city from time to time, such as the promotion of quality urban or architectural design, energy conservation, and decreasing capital and/or operating costs of local government. III. POLICIES FOR THE USE OF TIF a. When possible, TIF shall be used to finance public improvements associated with the project. The priority for the use of TIF funds is: 1. Public improvements, legal, administrative, and engineering costs. 2. Site preparation, site improvement, land purchase, demolition, and environmental remediation. 3. Capitalized interest, bonding costs. b. The following types of TIF districts may be established: 1. Economic Development Districts 2. Redevelopment Districts 3. Housing Districts 4. Renewal and Renovation Districts Other types of TIF districts, along with specific criteria, may be considered on a case by case basis. c. TIF assistance will be provided to the developer upon receipt of the increment by the City, otherwise referred to as the pay-as-you-go method. Requests for up front financing will be considered on a case by case basis. d. A maximum of ten percent(10%)of any tax increment received from the district shall be retained by the City to reimburse administrative costs. e. Only for projects which supersede the objectives identified herein, will the term of the TIF assistance exceed 15 years. f. Any developer receiving TIF assistance shall provide a minimum of twenty percent(20%) cash equity investment in the project. TIF shall not be used to supplant cash equity. g. TIF will not be used in circumstances where land and/or property price is in excess of fair market value. An appraisal by a third party, agreed upon by the City and Developer, will determine the fair market value of the land. h. Developer shall be able to demonstrate a market demand for a proposed project. TIF shall not be used to support purely speculative projects. i. TIF will not be utilized in cases where it would create an unfair and significant competitive financial advantage over other projects in the area. f i rig stet - --- ---- -- Page 2 City of Hugo,Minnesota j. TIF shall not be used for projects that would place extraordinary demands on city services or for projects that would generate significant environmental impacts. k. The developer must provide adequate financial guarantees to ensure completion of the project, including, but not limited to: assessment agreements, letters of credit, personal guaranties, etc. I. The developer shall adequately demonstrate, to the City's sole satisfaction, an ability to complete the proposed project based on past development experience, general reputation, and credit history, among other factors, including the size and scope of the proposed project. m. For the purposes of underwriting the proposal,the developer shall provide any requested market, financial, environmental,or other data requested by the City or its consultants. IV. PROJECT QUALIFICATIONS All TIF projects considered by the City of Hugo must meet all of the following requirements: a. To be eligible for TIF, a project shall result in: i. For Economic Development TIF Districts, new construction of a minimum of 15,000 square feet; ii. For Economic Development TIF Districts, the minimum creation of one new or retained full time job per$100,000 of TIF provided; iii. For Redevelopment TIF Districts, a minimum value increase of 3 times the current year assessed value; and, b. The project shall meet at least one of the objectives set forth in Section II and satisfy all the provisions set forth in Section III of this document. c. The developer shall demonstrate that the project is not financially feasible but- for the use of TIF. d. The project must be consistent with the City's Comprehensive Plan, Land Use Plan, and Zoning Ordinances. e. The project shall serve at least two of the following public purposes: • Creation of jobs with livable wages and benefits. • Increase of tax base. • Enhancement or diversification of the city's economic base. • Industrial development that will spur additional private investment in the area. • The project contributes to the fulfillment of the City's development or redevelopment objectives. • Removal of blight or the rehabilitation of a high profile or priority downtown site. pringsted Page City of Hugo, Minnesota V. SUBSIDY AGREEMENT& REPORTING REQUIRMENTS All developers/businesses receiving tax increment financing assistance from the City of Hugo shall be subject to the provisions and requirements set forth by state statute 116J.993 and summarized below. All developers/businesses receiving TIF assistance shall enter into a subsidy agreement with the City of Hugo that identifies: the reason for the subsidy, the public purpose served by the subsidy, and the goals for the subsidy, as well as other criteria set forth by statute 116J.993. The developer/business shall file a report annually for two years after the date the benefit is received or until all goals set forth in the application and performance agreement have been meet, whichever is later. Reports shall be completed using the format drafted by the State of Minnesota and shall be filed with the City of Hugo no later than March 1 of each year for the previous calendar year. Businesses fulfilling job creation requirements must file a report to that effect with the city within 30 days of meeting the requirements. The developer/business owner shall maintain and operate its facility at the site where TIF assistance is used for a period of five years after the benefit is received. In addition to attaining or exceeding the jobs and wages goals set forth in the Subsidy Agreement, the applicant shall meet the qualifications set forth in Section IV of this document. Developers/ Businesses failing to comply with the above provisions will be subject to fines, repayment requirements, and be deemed ineligible by the State of Minnesota to receive any loans or grants from public entities for a period of five years. prine Page City of Hugo, Minnesota VI. APPLICATION PROCESS 1. Applicant submits the completed application along with all application fees. 2. City staff reviews the application and completes the Application Review Worksheet. 3. Results of the Worksheet are submitted to the appropriate governing authorities for preliminary approval of the proposal. 4. If preliminary approval is granted, the Tax Increment Financing Plan, along with all necessary notices, resolutions and certificates are prepared by City staff and/or consultants. 5. Notices are published and sent to the county and school board. 6. Public hearing(s) on the proposed project are held. 7. The EDA recommends approval or denial of the project to the City Council. 8. The City Council grants final approval or denial of the proposal. ' €'t - --- — — Page 5 , � City of Hugo, Minnesota VII. APPLICATION FOR TAX INCREMENT A. APPLICANT INFORMATION Name of Corporation/Partnership Address Primary Contact Address Phone Fax Email On a separate sheet, please provide the following: • Brief description of the corporation/partnership's business, including history, principal product or service, etc. Attach as Exhibit A. • Brief description of the proposed project. Attach as Exhibit B. • List names of officers and shareholders/partners with more than five percent(5%) interest in the corporation/partnership. Attach as Exhibit C. • A but-for analysis. Attach as Exhibit D. Attorney Name Address Phone— Fax Email Accountant Name Address Phone Fax Email Contractor Name Address Phone Fax Email Engineer Name Address Phone Fax Email Architect Name Address Phone Fax Email fn,q s t E,d Page City of Hugo, Minnesota B. PROJECT INFORMATION The project will be: Industrial Greenfield: New Construction _Expansion Commercial Redevelopment: New Construction Rehabilitation Industrial Redevelopment: New Construction Rehabilitation Housing Redevelopment: New construction Rehabilitation Mixed Use Redevelopment: New Construction Rehabilitation Other Please explain the basic components of the project proposed, i.e., amount of new commercial square footage, numbers of housing units (rental or owner occupied), etc. The project will be: Owner Occupied Leased Space If leased space, please attach a list of names and addresses of future lessees and indicate the status of commitments or lease agreements.Attach as Exhibit E. Project Address Legal Description Site Plan Attached: Yes No Amount of Tax Increment Requested for: Building Demolition $ Environmental Remediation $ Public Improvements$ Site Improvements$ Land Acquisition $ (Land Acquisition shall not exceed 50%of total subsidy request) Total Subsidy Requested $ Current Assessed Value on Project Site: $ Current Real Estate Taxes on Project Site: City $ County $ School District $ Estimated Assessed Value upon Completion: Phase 1 $ Phase 11 $ SpringSpringsted Page City of Hugo, Minnesota Estimated Real Estate Taxes upon Completion: Phase 1 $ Phase 11 $ Construction Start Date: Construction Completion Date: If Phased Project: Year %Construction Completed Year %Construction Completed C. PUBLIC PURPOSE It is the policy of the City of Hugo that the use of Tax Increment Financing should result in a benefit to the public. Please indicate how this project will serve a public purpose. _Job Creation: Number of existing jobs Number of jobs created by project Average hourly wage of jobs created _Increase in Tax Base _Enhancement or diversification of the city's economic base. New industrial development which will result in additional private investment in the area. The project contributes to the fulfillment of the City's development or redevelopment objectives. _Removal of blight or the rehabilitation of a high profile or priority downtown site. Other: D.SOURCES&USES SOURCES NAME AMOUNT Bank Loan $ Other Private Funds $ Equity $ Fed Grant/Loan $ State Grant/Loan $ Other Loans $ ID Bonds $ Tax Increment $ 0 *" TOTAL $ "Note: Tax Increment is not an upfront funding source as it will be provided only on a pay-as-you-go basis. Developer needs to identify funding sources to cover ALL costs up front, absent Tax Increment. Sprfngsted Page City of Hugo, Minnesota USES AMOUNT Land Acquisition $ Site Development $ Construction $ Machinery & Equipment $ Architectural & Engineering Fees $ Legal Fees $ Interest During Construction $ Debt Service Reserve $ Contingencies $ TOTAL $ E.ADDITIONAL DOCUMENTATION Applicants will also be required to provide the following documentation. A) Written business plan, including a description of the business, ownership/management, date established, products and services, and future plans B) Financial Statements for Past Two Years Profit& Loss Statement Balance Sheet C) Current Financial Statements Profit& Loss Statement to Date Balance Sheet to Date D) Two Year Financial Projections F) Personal Financial Statements of all Major Shareholders Profit& Loss Current Tax Return G) Letter of Commitment from Applicant Pledging to Complete During the Proposed Project Duration H) Letter of Commitment from the Other Sources of Financing, Stating Terms and Conditions of their Participation in Project 1) Non refundable application fee of$2,500 J) Check for$10,000 to be placed in escrow to be used by the City to complete analysis of the subsidy requested, and to pay costs associated with Attorney's fees for the TIF Agreement(unused portion to be refunded) Page 9 rings City of Hugo, Minnesota The undersigned certifies that all information provided in this application is true and correct to the best of the undersigned's knowledge. The undersigned authorizes the City of Hugo to check credit references and verity financial and other information. The undersigned also agrees to provide any additional information as may be requested by the City after the filing of this application. Applicant Name Date By Its Sigted Page 10 City of Hugo, Minnesota TAX INCREMENT FINANCING PROPOSAL REVIEW WORKSHEET Redevelopment Districts 1.The project meets the criteria set forth in Section III of the City's Tax Increment Financing policy. a) Meets minimum thresholds for size, value, and tax capacity. b) Meets at least one of the objectives in Section III and satisfies the provision set forth in Section IV. c) Demonstrates need for TIF with the but-for analysis. e) Consistent with all city plans and ordinances. f) Serves at least two public purpose as defined in Section IV. 2. Ratio of Private to Public Investment in Project: Points: $ Private investment 5:1 5 $ Public Investment 4:1 4 Ratio Private to Public Financing 3:1 3 2:1 2 Less than 2:1 1 3. Structure of Financing: Points: < 10%of Subsidy Requested for Land Acq. 5 11%-20%of Subsidy Requested for Land Acq. 4 21%- 30%of Subsidy Requested for Land Acq. 3 31%-40%of Subsidy Requested for Land Acq. 2 41%-50%of Subsidy Requested for Land Acq. 1 4.Type of Project: Points: 100%Owner Occupied 5 Mix Owner Occupied & Investment 4 Investment Property 3 5. Use: Points: Retail 5 Office/Commercial 5 Mixed-use 5 Housing 3 1 ndustrial 1 6.Type of Development: Points: Redevelopment of Substandard Structures 5 Development of Vacant Land 3 7.Job CreationlWage Level Points: 15+Full Time Equivalent(FTE) Jobs, $15-$20 per hour 5 10-14 FTE's, $10-$14 per hour 4 1-9 FTE's, $749 per hour 3 pl~lgsed Page 11 City of Hugo, Minnesota 8. Assessed Value: Points: 7+times current 5 6 times current 4 5 times current 3 4 times current 2 3 times current 1 9. The project will pay annual Points: property taxes in the first fully 50,000 +5 assessed year of$ 35,000 +4 20,000 +3 10,000+2 Under 10,000 1 10. Likelihood that the project will result in Points: unsubsidized, spin-off development. High 5 Moderate 3 Low 1 Sub-Total Points: of a possible 45 points. 11. Bonus Points Points: The project will be 100%Pay-as-you-go TIF 3 points The project meets the goals of downtown redevelopment 2 points Total Points: Overall Project Analysis: 40-48 Pants Max Remaining Term 35-39 Pants 65-75%of Remaining Term 25-34 Points 40-50%of Remaining Term 15-24 Points 25-30%of Remaining Term 0-14 Points Not Eligible ringsted Page 12 City of Hugo, Minnesota EXHIBIT A Description of the corporation or partnership EXHIBIT B Description of the proposed project EXHIBIT C Names of officers and shareholders/partners with more than five percent(5%)interest in the corporati onipartners hip. EXHIBIT D But-for analysis EXHIBIT E Prospective Lessees pringste Page 13 City of Hugo, Minnesota SAMPLE BUT-FOR ANALYSIS WITH NO WITH TAX INCREMENT TAX INCREMENT SOURCES AND USES SOURCES AND USES SOURCES SOURCES Mortgage 9,600,000 8,667,000 Equity 2,400,000 2,400,00 Tax Increment Financing 0 933,000 TOTAL SOURCES 12,000,000 12,000,000 USES USES Land 1,500,000 1,500,000 Site Work 300,000 300,000 Soil Correction 468,000 468,000 Demolition 100,000 100,000 Relocation 65,000 65,000 Subtotal Land Costs 2,433,000 2,433,000 Construction 6,750,000 6,750,000 Finish Manufacturing 250,000 250,000 Subtotal Construction Costs 7,000,000 7,000,000 Soft Costs 350,000 350,000 Taxes 35,000 35,000 Finance Fees 850,000 850,000 Project Manager 542,000 542,000 Developer Fee 540,000 540,000 Contingency 250,000 250,000 Subtotal Soft Costs 2,567,000 2,567,000 TOTAL USES 12,000,000 12,000,000 Income Statement Income Statement Sq. Ft. Per Sq. Ft. Sq. Ft. Per Sq. Ft. Rent-Space 1 100,000 $8.00 800,000 100,000 $8.00 800,000 Rent-Space 2 25,000 $8.50 212,500 25,000 $8.50 212,500 Rent-Space 3 25,000 $9.00 225,000 25,000 $9.00 225,000 Other 0 $0.00 0 0 $0.00 0 1,237,500 1,237,500 Mortgage 20 Term 1,051,646 20 Term 949,439 9.00% Interest 9.00% Interest 9,600,000 Principal 8,667,000 Principal Net Income 185,854 _ 288,061 Total Return on Equity 7.74% 12.00% Springsted Page 14 City of Hugo, Minnesota EXHIBIT A Description of the corporation or partnership Springte Page 15 City of Hugo, Minnesota EXHIBIT B Description of the proposed project Springsted Page 16 City of Hugo, Minnesota EXHIBIT C Names of officers and shareholdersipartners with more than five percent (5%) interest in the corporation/partnership. Springst d Page 17 City of Hugo, Minnesota EXHIBIT D But-for analysis 5pringse Page 18 City of Hugo, Minnesota EXHIBIT E Prospective Lessees Springsted Page 19 City of Hugo, Minnesota Tax Increment Financing Plan for Tax Increment Financing (Redevelopment) District No. 1-2 Within Development District No. 1 (Downtown Redevelopment TIF District) Dated: February 20, 2007 (DRAFT) Approved: Prepared by: SPRINGSTED INCORPORATED 380 Jackson Street, Suite 300 St. Paul, MN 55101-2887 (651)223-3000 WWW.SPRINGSTED.COM TABLE OF CONTENTS Section Page(s) A. Definitions..............................................................................................................................................................1 B. Statutory Authorization..........................................................................................................................................1 C. Statement of Need and Public Purpose.................................................................................................................1 D. Statement of Objectives.......................................................................................................................................2 E. Designation of Tax Increment Financing District as a Redevelopment District ..................................................3 F. Duration of the TIF District............................................................................... ..................................................4 G. Property to be Included in the TIF District..........................................:....................,. ............................................4 H. Property to be Acquired in the TIF District............................... ..................... ......... ..............................4 I. Specific Development Expected to Occur Within the TIF District................................. ......................................4 J. Findings and Need for Tax Increment Financing........ ...... ....................................... ......... ..........................5 K. Estimated Public Costs.............................................................................—..........................,...............................7 L. Estimated Sources of Revenue............................................!............ :..................................................................7 M. Estimated Amount of Bonded Indebtedness.............................. . ......................................................................8 N. Original Net Tax Capacity................... ................................. ....... ..............................,..,.................................8 O. Original Local Tax Rate................................... ....... . .................... ................................................................8 P. Projected Retained Captured Net Tax Capacity and Projected Tax Increment.....................................................9 Q. Use of Tax Increment............ ..................... ........: ......... ...............................................................9 R. Excess Tax Increment ........: ..................... ......... ..................... .............................................................10 S. Tax Increment Pooling and the Five Year Rule ......... ......................................................................................11 T. Limitation on Administrative Expenses..........................!. ....................................................................................11 U. Limitation on Property Not Subject to Improvements-Four Year Rule...............................................................12 V. Estimated Impact on Other Taxing Jurisdictions....... . ......................................................................................12 W. Prior Planned Improvements: .................................. .......................................................................................12 X. Development Agreements..... ..... .....................................................................................................................13 Y. Assessment Agreements.................... ..............................................................................................................13 Z. Modifications of the Tax Increment Financing Plan.............................................................................................13 AA. Administration of the Tax Increment Financing Plan............................................................................................14 AB. Filing TIF Plan, Financial Reporting and Disclosure Requirements.................................................................. 15P Map of the Tax Increment Financing District...........................................................................................EXHIBIT Map of Development District...................................................................................................................EXHIBIT Boundaries of Tax Increment Financing District.....................................................................................EXHIBIT II AssumptionsReport..............................................................................................................................EXHIBIT III Projected Tax Increment Report............................................................................................................EXHIBIT IV Estimated Impact on Other Taxing Jurisdictions Report.........................................................................EXHIBIT V Market Value Analysis Report...............................................................................................................EXHIBIT VI Redevelopment District Findings..........................................................................................................EXHIBIT VII City of Hugo, Minnesota Section A Definitions The terms defined in this section have the meanings given herein, unless the context in which they are used indicates a different meaning: "Authority"means the Hugo Economic Development Authority. "C�t ""means the City of Hugo, Minnesota; also referred to as a"Municipality". "City Council"means the City Council of the City. "County"means Washington County, Minnesota. "Development Distdct" means Development District No. 1 in the City, which is described in the corresponding Development Program. "Development Program"means the Development Program for the Development District. "Project Area" means the geographic area of the Development District. "School District"means Independent School District No.624, Minnesota. "State"means the State of Minnesota. "TIF Act"means Minnesota Statutes, Sections 469.174 through>469.1799, both inclusive. "TIF District"means Tax Increment Financing(Redevelopment)District No. 1-2. "TI F Plan"means the tax increment financN plan for the TIF District(this document). Section B Statutory Authorization Within the City, there exist areas where public involvement is necessary to cause development or redevelopment to occur. To this end, the City has certain statutory powers pursuant to the TIF Act to assist in financing eligible activities related to these development needs. This Section contains the Tax Increment Financing Plan for District No. 1-2. Other relevant information is contained in the Development Program for Development District No. 1. Section C Statement of Need and Public Purpose The City finds that there is a need for development within the City and the Project Area in order to provide employment and housing opportunities, to improve the local tax base, and to improve the general economy of the City and the State. The economic security of the people in the City depends upon proper development of property that meets any one of a number of conditions, including properties whose values are too low to pay for the public services required or rendered and properties whose lack of use or improper use has resulted in stagnant or unproductive land that could otherwise contribute to the public health, safety, and welfare. The City finds that in many cases such property cannot be developed without public participation and assistance in various forms including property acquisition and/or write-down, proper planning, the financing of development costs associated with clearance, grading and soils correction, and the making of various other public and private improvements necessary for development. In cases where the development of property cannot be done by private SPRINGSTED Pagel City of Hugo, Minnesota enterprise alone, the City believes it to be in the public interest to consider the exercise of its powers, to advance and spend public money, and to provide the means and impetus for such development. The City finds that in certain cases property within the Project Area would or may not be available for development without the specific financial aid to be sought, that the Redevelopment Plan will afford maximum opportunity, consistent with the needs of the City as a whole, for the development of the Project Area by private enterprise, and that the Redevelopment Plan conforms to the general plan for the development of the City as a whole. Section D Statement of Objectives The City seeks to achieve one or more of the following objectives with respect to the Project Area, as the City may deem appropriate and necessary. (1) To promote and secure the prompt development and redevelopment of property within the Project Area, such property which is not now in its most productive use, in a manner consistent with the Comprehensive Plan of the City,thus realizing Comprehensive Plan, land use, and tax base goals. (2) To assist development in the Project Area through the acquisition or write-down of certain interests in property which is not now in productive use or in its highest and best use, to make or defray the cost of soil corrections or site improvements on said property to clear the property of blighted buildings, and to construct or reimburse for the construction of public improvements and other facilities on or for the benefit of said property, thereby promoting and securing the development of other land within the Project Area. (3) To retain local jobs and/or increase the numberand diversity of jobs that offer stable employment and/or attractive wages and benefits,; (4) To provide funding for an ongoing development strategy and to prioritize the use of available resources: (5) To implement and revise from time to time, as may be deemed necessary or desirable, a consolidated and unified Redevelopment Plan and to finance the associated development costs on an area-wide basis. (6) To employ any of the powers of the City for the benefit of the Project Area in such cases and upon such terms as the City may deem appropriate. (7) To construct or acquire facilities deemed desirable for the development of the Project Area. (8) To encourage additional unsubsidized private development in the area, either directly or indirectly through"spin of"development. (9) To facilitate' the development process and to achieve development on sites which would not otherwise be developed but/for the use of Tax Increment Financing. District No. 1-2 is a redevelopment district with 1 contiguous site. The total district consists of 125 parcels of land and adjacent and internal rights-of-way. District No. 1-2 is created to facilitate achieving the objectives set forth in the Development Program for Development District No. 1. The objectives expected to be achieved through the use of tax increment financing include, but are not limited to, removal of barriers to development, redevelopment, creation of jobs,creation of life cycle housing, and expansion of the tax base. SPRINGSTED Page 2 City of Hugo, Minnesota The activities contemplated in the present Development Program and Tax Increment Financing Plan do not preclude the undertaking of other qualified redevelopment activities. These activities are anticipated to occur over the life of the District. Section E Designation of Tax Increment Financing District as a Redevelopment District Redevelopment districts are a type of tax increment financing district in which one or more of the following conditions exists and is reasonably distributed throughout the district: (1) parcels comprising at least 70%of the area of the district are occupied by buildings, streets, utilities, paved or gravel parking lots, or other similar structures and more than 501/o of the buildings, not including outbuildings, are structurally substandard requiring substantial renovation or clearance. A parcel is deemed "occupied" if at least 15% of the area of the parcel contains buildings, streets, utilities, paved or gravel parking lots;or other similar structures. (2) the property consists of vacant, unused, underused,inappropriately used, or infrequently used railyards, rail storage facilities, or excessive or vacated railroad right-of-ways; or (3) tank facilities, or property whose immediately previous use was for tank facilities, as defined in section 1150.02, subdivision 15, if the tank facilities: (i) have or had a capacity,of more than 1,000,000 gallons; (ii) are located adjacent to rail facilities; and (iii) have been removed or are unused, underused, inappropriately used, or infrequently used. For districts consisting of two more noncontiguous areas, each area must individually qualify under the provisions listed above,as well as the entire area mustalso qualify as a whole. The TIF District qualifies as a redevelopment district in that it meets all of the criteria listed in (1) above. The supporting facts and documentation for this determination are summarized in Exhibit VII and will be retained by the City for the life of the TIF District and are available-to the public'upon request. "Structurally substandard" is defined as buildings containing defects or deficiencies in structural elements, essential utilities andfacilities, light and ventilation, fire protection (including egress), layout and condition of interior partitions, or similar factors. Generally, a building isnot structurally substandard if it is in compliance with the building code applicable to a new building, or could be modified to satisfy the existing code at a cost of less than 15%of the cost of constructing anew structure of the same size and type. A city may not find that a building`;is structurally substandard without an interior inspection, unless it can not gain access to the property and there exists evidence which supports the structurally substandard finding. Such evidence includes recent fire or police inspections, on-site property tax appraisals or housing inspections, exterior evidence of deterioration, or other similar.reliable evidence. Written documentation of the findings and reasons why an interior inspection was not conducted must be made and retained. A parcel is deemed to be occupied by a structurally substandard building if the following conditions are met: (1) the parcel was occupied by a substandard building within three years of the filing of the request for certification of the parcel as part of the district; (2) the demolition or removal of the substandard building was performed or financed by the City, or was performed by a developer under a development agreement with the City, (3) the City found by resolution before such demolition or removal occurred that the building was structurally substandard and that the City intended to include the parcel in the TIF district, and SPRINGSTED Page 3 City of Hugo, Minnesota (4) the City notifies the county auditor that the original tax capacity of the parcel must be adjusted upon filing the request for certification of the tax capacity of the parcel as part of a district. In the case of(4)above, the County Auditor shall certify the original net tax capacity of the parcel to be the greater of (a)the current tax capacity of the parcel, or (b)a computed tax capacity of the parcel using the estimated market value of the parcel for the year in which the demolition or removal occurred, and the appropriate classification rate(s) for the current year. At least 90 percent of the tax increment from a redevelopment district must be used to finance the cost of correcting conditions that allow designation as a redevelopment district. These costs include, but are not limited to, acquiring properties containing structurally substandard buildings or improvements or hazardous substances, pollution, or contaminants, acquiring adjacent parcels necessary to provide a site of sufficient size to permit development, demolition and rehabilitation of structures, clearing of land, removal of hazardous substances or remediation necessary to develop the land, and installation of utilities, roads, sidewalks, and parking facilities for the site. The allocated administrative expenses of the City may be included in the quatifying costs. Section F Duration of the TIF District Redevelopment districts may remain in existence 25 years from the date of receipt by the City of the first tax increment. Modifications of this plan(see Section Z)shall not extend these limitations. The City reserves the right to allow the TIF District to remain in existence the maximum duration allowed by law (projected to be through the year 2035 if no infta6onary increment is received in 2009 however, if that increment is received in 2009 the last year of the district will be 2034), and anticipates that the TIF District may be active for the maximum duration allowed (see Section P), however the City will decertify the TIF District as early as possible should the projected increment be received in a shorter time period than originally projected. All tax increments from taxes payable in the year the TIF District is decertified shall be paid to the City. Section G Property to be Included in the TIF District The TIF District is an approximate 93 acre area of land located within the Project Area. A map showing the location of the TIF District is shown in Exhibit I. The boundaries and area encompassed by the TIF District are described in Exhibit IL Section H Property to be Acquired in the TIF District The City may acquire and sell any or all of the property located within the TIF District. The City anticipates acquiring available property,within the district at any time, and may also finance the direct acquisifion of land by the Developer. Section I Specific Development Expected to Occur Within the TIF District The anticipated development is defined within a study completed by Maxfield. Research Inc. in December 2005 entitled An Analysis of the Market Potential for Housing, Retail, and Office Uses in Downtown Hugo, Minnesota. The Maxfield study includes the redevelopment of certain properties within the defined district including the construction of approximately 156 to 538 residential housing units, 40,500 to 105,000 square feet of retail, and 13,900 to 20,775 square feet of office space. The City has been acquiring properties that have previously been found to be substandard within the district and demolishing them in preparation for such redevelopment. The existing buildings that been acquired have been inspected and found to be substandard by resolution. Several of those buildings have since been removed and the site cleared for construction of new development. SPRINGSTED Page 4 City of Hugo, Minnesota Additional inspections have occurred on the remaining buildings in the proposed TIF district in 2006. See Exhibit VII. The City anticipates using tax increment to reimburse itself for a portion of the eligible public improvement costs including acquisition, demolition, site improvements, and related administrative costs. The size of the proposed District makes it difficult to estimate with any certainty the years that various types of development will occur within such District. It is likely that multiple projects will occur through many years of the district. The projects forecasted within the Maxfield study are expected to be fully constructed through 2015. Although the City has been approached by several developers indicating some level of interest in redevelopment of specific parcels within the District, at the time this document was prepared there were no signed construction contracts with regard to the above described development. Section J Findings and Need for Tax Increment Financing In establishing the TIF District, the City makes the following findings (1) The TIF District qualifies as a redevelopment district; The City of Hugo retained the services of three,experienced City building officials to inspect and evaluate property within the proposed Tax Increment Financing District No 1-2 to be established by the City. The purpose of the evaluations was to determine if the proposed district met the statutory requirements for coverage and if the buildings met the qualifications required for a Redevelopment District. The final report has been prepared by the officials for the City to retain on file in City offices for;public inspection, The report contains the details of the findings summarized below;regarding the substandard qualifications: • parcels consisting of 79.36 percent of the area of the proposed TIF District are occupied,exceeding the 70 percent coverage test; • 59.38,percent of the buildings in the proposed District contain code deficiencies exceeding the 15 percent threshold; •.. 59.38 percent of the buildings are structurally substandard to a degree requiring substantial renovation or clearance, because of defects in structural elements or a`combination of deficiencies in essential utilities and facilities, light and ventilation, fire protection including adequate egress, layout and condition of interior partitions, or similar factors which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance, exceeding the more than 50 percent substandard test; and • percent of the buildings were found to contain general deficiencies..... the substandard buildings are reasonably distributed throughout the geographic area of the proposed TIF District. These findings are described more completely in Exhibit VII. (2) The proposed development, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the district permitted by the TIF Plan. Factual basis: SPRINGSTED Page 5 City of Hugo, Minnesota Proposed development not expected to occur: The proposed redevelopment consists of the acquisition and demolition of substandard buildings within the proposed TIF District boundaries in the City of Hugo for development of new residential life cycle housing, retail commercial space, and office units. Such redevelopment requires assembly of multiple parcels which are under multiple ownership in the TIF District, demolition and clearance of the assembled area,with significant site costs, which together make the total cost of this effort significantly higher than costs reasonably incurred for similar developments on a clean site. The City anticipates analyzing future developer's proformas in detail to determine the minimal amount of assistance needed to compensate developer for these extraordinary costs. No higher market value expected: This finding is based on the fact that no other development of comparable scope to the proposed development is practical without the same type of assistance described in this plan. While some of the substandard buildings have been demolished as of the date of this plan, most of the extraordinary costs remain (or would need to be reimbursed). Smaller, piecemeal developments in this area might be feasible, but any large-scale development that would create the market value expected under the current proposal would require significant assistance, as bome out by the City's analysis of the preliminary developer discussions. Moreover, this is a downtown redevelopment project in the City with many buildings requiring significant assemblage, demolition and site improvements prior to development opportunities. There is no basis for expectation that the area would redevelop in any significant way purely by private action without public subsidy. To summarize the basis for the City's findings regarding alternative market value, in accordance with Minnesota Statutes, Section 469.175, Subd.3(d),the City makes the following determinations: a. The City's estimate of the mount by which the market value of the site will increase without the use of tax increment financing is anywhere from $0 to some modest amount based on small scale development that could be possible without assistance; any estimated values would be too speculative to ascertain. b. If the proposed development to be assisted with tax increment occurs in the District, the total increase in market value would be approximately$260,390,671, including the value of the building (See Exhibit III). C. The present value of tax increments from the District for the maximum duration of the district permitted by the TIF Plan is estimated to be$15,785,471 (See Exhibit VI) d. Even if some development other than the proposed development were to occur, the Council finds that no alternative would occur that would produce a market value increase greater than $244,605,200(the amount in clause b less the amount in clause c)without tax increment assistance. (3) The TIF Plan will afford maximum opportunity, consistent with the sound needs of the City as a whole, for development of the Project Area by private enterprise. Factual basis: The anticipated redevelopment cited in the Maxfield study may include the construction of up to 592 units of residential development, 145,500 square feet of retail, and 37,700 square feet of office space in the Project Area that is expected to create substantial new tax base for the City and the state, as well as expected future private development. The development clearly meets the City's housing and redevelopment goals of creating additional housing opportunities, and meeting the City's goal of the removal of blight. (4) The TIF Plan conforms to general plans for development of the City as a whole. SPRINGSTED Page 6 City of Hugo, Minnesota Factual basis: The City Planning Commission has determined that the development proposed in the TIF Plan conforms to the City comprehensive plan. (5) The City does not elect the method of tax increment computation set forth in Minnesota Statutes, Section 469.177, Subdivision 3(b); therefore subdivision 3(a)shall apply which indicates the original net tax capacity and the current net tax capacity shall be determined before the application of the fiscal disparity provisions(see method (a)in Section P). Section K Estimated Public Costs The estimated public costs of the TIF District are listed below. Such costs are eligible for reimbursement from tax increments of the TIF District. Land/Building acquisition Site Improvements/Preparation costs Installation of public utilities Demolition/Relocation Streets and sidewalks Public park facilities Total Estimated Public Improvements 15,000,000 Bond principal payments 15,000,000 Bond interest payments 20,000,000 Loan Principal payments 0 Loan Interest payments 0 Capitalized Interest payments 4,500,000 Administrative expenses 4,500,000 Other 1,000,0000 Total $60,000,000 The City reserves the right to administratively adjust the amount of any of the items listed above or to incorporate additional eligible items, so long as the total estimated public cost is not increased. The estimated cost of capitalized interest is included in the loan interest payment amount. Section L Estimated Sources of Revenue Tax Increment revenue $44,000,000 Interest on invested funds Bond proceeds 15,000,000 Loan proceeds Real estate sales 1,000,000 Special assessments Rent/Lease revenue Grants Other Total $60,000,000 The City anticipates using future tax increments for reimbursement of public costs incurred from Section K. As increments are collected from the TIF District in future years, a portion of these taxes will be reserved by the City as reimbursement for public costs incurred (primarily land acquisition), either through internal funding or general SPRINGSTED Page 7 City of Hugo, Minnesota obligation or revenue debt. The City also anticipates providing financial assistance to the proposed development through the use of a pay-as-you-go technique. As tax increments are collected from the TIF District in future years, a portion of these taxes will be distributed to the developer/owner as reimbursement for public costs incurred that relate to redevelopment of the project site. The City reserves the right to finance any or all public costs of the TIF District using pay-as-you-go assistance, internal funding, general obligation or revenue debt, or any other financing mechanism authorized by law. The City also reserves the right to use other sources of revenue legally applicable to the Project Area to pay for such costs including, but not limited to, special assessments, utility revenues,federal or state funds, and investment income. Section M Estimated Amount of Bonded Indebtedness The City anticipates issuing tax increment bonds to finance the estimated public costs of the TIF District in an amount not to exceed$15,000,000. Section N Original Net Tax Capacity The County Auditor shall certify the original net tax capacity of the TIF District. This value will be equal to the total net tax capacity of all property in the TIF District as certified by the State Commissioner of Revenue. For districts certified between January 1 and June 30, inclusive, this value is based on the°previous assessment year. For districts certified between July 1 and December 31, inclusive,,this value is based on the current assessment year. Some parcels within the boundaries of the district contained,buildings that were demolished (see Exhibit VII for additional detail). The greater of the current net tax capacity or the estimated market value of the parcel for the year in which the buildings were removed,applying class rates for the current year must be used to calculate the original net tax capacity. Therefore, upon establishment of the TIF District, and subsequent reclassification of property, it is estimated that the market value of all property within the'proposed TIF district boundaries as of January 2, 2006, for taxes payable in 2007, or in the year the buildings were removed, will be $28,350,400 and the original net tax capacity of the TIF District will be approximately$400,174. Each year the County Auditor shall certify the amount that the original net tax capacity has increased or decreased as a result of: (1) changes in the tax-exempt status of property; (2) reductions or enlargements of the geographic area of the TIF District; (3) changes due to stipulation agreements or abatements;or (4) changes in property classification rates. Section 0 Original Local Tax Rate The County Auditor shall also certify the original local tax rate of the TIF District. This rate shall be the sum of all local tax rates that apply to property in the TIF District. This rate shall be for the same taxes payable year as the original net tax capacity. In future years, the amount of tax increment generated by the TIF District will be calculated using the lesser of(a)the sum of the current local tax rates at that time or(b)the original local tax rate of the TIF District. At the time this document was prepared, the sum of the final local tax rates that apply to property in the TIF District, for taxes levied in 2006 and payable in 2007, was not yet available. When this total becomes available, the County SPRINGSTED Page 8 City of Hugo, Minnesota Auditor shall certify this amount as the original tax capacity rate of the TIF District. For purposes of estimating the tax increment generated by the TIF District, the sum of the preliminary local tax rates for taxes levied in 2005 and payable in 2006, is 82.985%as shown below. 2006/2007 Taxing Jurisdiction Local Tax Rate City of Hugo 35.931% Washington County 25.651% ISD#624 17.731% Other 3.672% Total 82.985% Section P Projected Retained Captured Net Tax Capacity and Projected Tax Increment The City anticipates that the redevelopment will be completed by December 31, 2015, creating a total tax capacity for TIF District No. 1-2 of$2,440,599 as of January 2,2016. The captured tax capacity as of that date is estimated to be $2,000,425 and the first full year of tax increment is estimated to be $1,660,053 payable in 2017. A complete schedule of estimated tax increment from the TIF District is shown in Exhibit IV. The estimates shown in this TIF Plan assume that residential class rates remain at 1.0% of the estimated market value under$500,000 and 1.25%of the estimated marketvalue above $500,000, rental class rates remain at 1.25%, commercial class rates remain at 1.5%for the first$150,000 of estimated market value and 2.0%of the market value above$150,000. The projections also assume a 2%annual increase in market values. Each year the County Auditor shall determine the current net tax capacity of all property in the TIF District. To the extent that this total exceeds the original net tax capacity, the difference shall be known as the captured net tax capacity of the TIF District. For communities affected by the fiscal disparity provisions of Minnesota Statutes, Chapter 473F and Chapter 276A, the original net tax capacity of the TIF District shaft be determined before the application of fiscal disparity. In subsequent years,the current net tax capacity shall either (a)be determined before the application of fiscal disparity or (b)exclude the product of any fiscal disparity increase in the TIF District (since the original net tax capacity was certified) times the appropriate fiscal disparity ratio. The method the City elects shall remain the same for the life of the TIF District, except that a single change may be made at any time from method (a) to method (b) above. »The City elects method (a), or M.S. Section 469.177, Subdivision 3(a). The County Auditor shall certify to the City the amount of captured net tax capacity each year. The City may choose to retain any or all of this amount. -1t is the City's intention to retain 100%of the captured net tax capacity of the TIF District. Such amount shall be known as the retained captured net tax capacity of the TIF District. Exhibit III gives a listing of the various information and assumptions used in preparing a number of the exhibits contained in this TIF Plan, including Exhibit IV which shows the projected tax increment generated over the anticipated life of the TI F District. Section Q Use of Tax Increment Each year the County Treasurer shall deduct 0.36%of the annual tax increment generated by the TIF District and pay such amount to the State's General Fund. Such amounts will be appropriated to the State Auditor for the cost of financial reporting and auditing of tax increment financing information throughout the state. Exhibit IV shows the projected deduction for this purpose over the anticipated life of the TIF District. SPRINGSTED Page 9 City of Hugo, Minnesota The City has determined that it will use 100%of the remaining tax increment generated by the TIF District for any of the following purposes: (1) pay for the estimated public costs of the TIF District (see Section K) and County administrative costs associated with the TIF District(see Section T); (2) pay principal and interest on tax increment bonds or other bonds issued to finance the estimated public costs of the TIF District; (3) accumulate a reserve securing the payment of tax increment bonds or other bonds issued to finance the estimated public costs of the TIF District; (4) pay all or a portion of the county road costs as may be required by the County Board under M.S. Section 469.175, Subdivision 1 a;or (5) return excess tax increments to the County Auditor for redistribution to the-City, County and School District. Tax increments from property located in one county must be expended for the direct and primary benefit of a project located within that county, unless both county boards involved waive this requirement. Tax increments shall not be used to circumvent levy limitations applicable to the City. Tax increment shall not be used to finance the acquisition, construction, renovation, operation, or maintenance of a building to be used primarily and regularly for conducting the business of a municipality, county, school district, or any other local unit of government or the State or federal governn mt,or for a commons area used as a public park, or a facility used for social, recreational, or conference purposes. This prohibition does not apply to the construction or renovation of a parking structure or of a`privately owned facility for conference purposes. If there exists any type of agreement or arrangement providing for the developer, or other beneficiary of assistance, to repay all or a portion of the assistance that was paid or financed with tax increments, such payments shall be subject to all of the restrictions imposed on the use of tax increments. Assistance includes sale of property at less than the cost of acquisition or fair market value, grants, ground or other leases at less then fair market rent, interest rate subsidies, utility service connections, roads, or other similar assistance that would otherwise be paid for by the developer or beneficiary, Section R Excess Tax Increment In any year in which the tax increments from the TIF District exceed the amount necessary to pay the estimated public costs authorized by the TIF Plan, the City shall use the excess tax increments to: (1) prepay,any outstanding tax increment bonds; (2) discharge the pledge of tax increments thereof; (3) pay amounts into an escrow account dedicated to the payment of the tax increment bonds; or (4) return excess tax increments to the County Auditor for redistribution to the City, County and School District. The County Auditor must report to the Commissioner of Education the amount of any excess tax increment redistributed to the School District within 30 days of such redistribution. SPRINGSTED Page 10 City of Hugo, Minnesota Section S Tax Increment Pooling and the Five Year Rule At least 75%of the tax increments from the TIF District must be expended on activities within the district or to pay for bonds used to finance the estimated public costs of the TIF District (see Section E for additional restrictions). No more than 25%of the tax increments may be spent on costs outside of the TIF District but within the boundaries of the Project Area, except to pay debt service on credit enhanced bonds. All administrative expenses are considered to have been spent outside of the TIF District. Tax increments are considered to have been spent within the TIF District if such amounts are: (1) actually paid to a third party for activities performed within the TIF District within five years after certification of the district; (2) used to pay bonds that were issued and sold to a third party,the proceeds of which are reasonably expected on the date of issuance to be spent within the later of a*five-year period or a reasonable temporary period or are deposited in a reasonably required reserve or replacement fund. (3) used to make payments or reimbursements to a third party under binding contracts for activities performed within the TIF District, which were entered into within five years after certification of the district; or (4) used to reimburse a party for payment of eligible costs(including interest) incurred within five years from certification of the district. Beginning with the sixth year following certification of the TIF District, at least 75%of the tax increments must be used to pay outstanding bonds or make contractual payments obligated within the first five years. When outstanding bonds have been defeased and sufficient money has been set aside to pay for such contractual obligations, the TIF District must be decertified. The City anticipates that tax cements will be spent outside of the TIF District (including a portion for allowable administrative expenses)for transportation,redevelopmentand affordable housing qualified pooling expenditures. Section T Limitation on Administrative Expenses Administrative expenses are defined as all costs of the City other than: (1) amounts paid for the purchase of land; (2) amounts paid for materials and services, including architectural and engineering services directly connected with the physical development of the real property in the project; (3) relocation benefits`paid to, or services provided for, persons residing or businesses located in the project; (4) amounts used to pay principal or interest on, fund a reserve for, or sell at a discount bonds issued pursuant to section 469.178; or (5) amounts used to pay other financial obligations to the extent those obligations were used to finance costs described in clause (1)to (3). Administrative expenses include amounts paid for services provided by bond counsel, fiscal consultants, planning or economic development consultants, and actual costs incurred by the County in administering the TIF District. Tax increments may be used to pay administrative expenses of the TIF District up to the lesser of (a) 10% of the total estimated public costs authorized by the TIF Plan or(b) 10%of the total tax increment expenditures for the project. SPRINGSTED Page 11 City of Hugo, Minnesota Section U Limitation on Property Not Subject to Improvements-Four Year Rule If after four years from certification of the TIF District no demolition, rehabilitation, renovation, or qualified improvement of an adjacent street has commenced on a parcel located within the TIF District, then that parcel shall be excluded from the TIF District and the original net tax capacity shall be adjusted accordingly. Qualified improvements of a street are limited to construction or opening of a new street, relocation of a street, or substantial reconstruction or rebuilding of an existing street. The City must submit to the County Auditor, by February 1 of the fifth year, evidence that the required activity has taken place for each parcel in the TIF District. If a parcel is excluded from the TIF District and the City or owner of the parcel subsequently commences any of the above activities, the City shall certify to the County Auditor that such activity has commenced and the parcel shall once again be included in the TIF District. The County Auditor shall certify the net.tax capacity of the parcel, as most recently certified by the Commissioner of Revenue, and add such amount to the original net tax capacity of the TIF District. Section V Estimated Impact on Other Taxing Jurisdictions Exhibit V shows the estimated impact on other taxing jurisdictions if the maximum projected retained captured net tax capacity of the TIF District was hypothetically available to the other taxing jurisdictions. The City believes that there will be no adverse impact on other taxing jurisdictions during the life of the TIF District, since the proposed development would not have occurred without the establishment of the TIF District and the provision of public assistance. A positive impact on other taxing jurisdictions will occur when the TIF District is decertified and the development therein becomes part of the general tax base. The fiscal and economic implications of the proposed tax increment financing district, as pursuant to Minnesota Statutes, Section 469.175, Subdivision 2,are listed below. 1. The total amount of tax increment that will be generated over the life of the district is estimated to be $43,936,950. 2. To the extent the project in TIF District 1,-2 generates any public cost impacts on city-provided services such as police and.fire protection, public infrastructure, and the impact of any general obligation tax increment bonds attribute to the district upon the ability to issue other debt for general fund purposes, such costs will be levied upon the taxable net tax capacity of the City, excluding that portion captured by the District. 3. The amount of tax increments over the life of the district that would be attributable to school district levies, assuming the school district's share of the total local tax rate for all taxing jurisdictions remained the same, is estimated to be$9,387,794. 4. The amount,of tax increments over the life of the district that would be attributable to county levies, assuming the,county's share of the total local tax rate for all taxing jurisdictions remained the same is estimated to be$13,581,090. 5. No additional information has been requested by the county or school district that would enable it to determine additional costs that will accrue to it due to the development proposed for the district. Section W Prior Planned Improvements Various permits have been issued for a property within the TIF District within the last 18 months and are listed below: PID Address Date Issued Valuation Permit# 2003121240065 5582146th St N 9111/2006 2,000.00 2006-01730 SPRINGSTED Page 12 City of Hugo, Minnesota 2003121310022 14235 Forest Blvd N 8/22/2006 52,000.00 2006-01665 2003121310007 14497 Forest Blvd N 9/28/2006 1,000.00 2006-01833 200312124002-6--5737 147th St N 8/22/2006 2,000.00 2006-01664 2003121240026 5737147th St N 9/12/2006 1,200.00 2006-01758 2003121240025 5697147"St N 9/12/2005 2,000.00 2005-02643 2003121240026 5737147"St N 11/18/2005 10,000.00 2005-03503 2003124240026 5737 147th St N 10/18/2005 2,000.00 2005-03140 2003121330071 5448 140th St The Authority will accompany its request for certification to the County Auditor (or notice of district enlargement), with a listing of such properties within the TIF District for which building permits have been issued during the 18 months immediately preceding approval of the TIF Plan. The County Auditor shall increase the original net tax capacity of the TIF District by the net tax capacity of each improvement for which a building permit was issued. However the Authority does not believe the issuance of the permits will have a significant impact on the original net tax capacity of the District. Section X Development Agreements If within a project containing a redevelopment district, more than 25%of the acreage of the property to be acquired by the City is purchased with tax increment bonds proceeds (to which tax increment from the property is pledged), then prior to such acquisition, the City must enter into an agreement for the development of the property. Such agreement must provide recourse for the City should the development not completed. The City anticipates entering into individual agreements for development as projects occur, and anticipates acquiring property located within the TIF District. Section Y Assessment Agreements The City may, upon entering into a development agreement, also enter into an assessment agreement with the developer, which establishes a minimum market value of the land and improvements for each year during the life of the TIF District. The assessment agreement shall be presented to the County or City Assessor who shall review the plans and specifications for the improvements to be constructed, review the market value previously assigned to the land, and so long as the minimum market value contained in the assessment agreement appears to be an accurate estimate, shall certify the assessment agreement as reasonable. The assessment agreement shall be filed for record in the office of the County Recorder of each county where the property is located. Any modification or premature termination of this agreement must first be approved by the City, County and School District. The City reserves the right to enter into an assessment agreement for individual projects. Section Z Modifications of the Tax Increment Financing Plan Any reduction or enlargement in the geographic area of the Project Area or the TIF District; a determination to capitalize interest on the debt if that determination was not part of the original TIF Plan, increase in the portion of the captured net tax capacity to be retained by the Authority; increase in the total estimated public costs; or designation of property to be acquired by the Authority shalt be approved only after satisfying all the necessary requirements for approval of the original TIF Plan. This paragraph does not apply if: (1) the only modification is elimination of parcels from the TIF District; and SPRINGSTED Page 13 City of Hugo, Minnesota (2) the current net tax capacity of the parcels eliminated equals or exceeds the net tax capacity of those parcels in the TIF District's original net tax capacity, or the City agrees that the TIF District's original net tax capacity will be reduced by no more than the current net tax capacity of the parcels eliminated. The City must notify the County Auditor of any modification that reduces or enlarges the geographic area of the TIF District. The geographic area of the TIF District maybe reduced but not enlarged after five years following the date of certification. Section AA Administration of the Tax Increment Financing Plan Upon adoption of the TIF Plan, the City shall submit a copy of such plan to the Minnesota Department of Revenue and the Office of the State Auditor. The City shall also request that the County Auditor certify the original net tax capacity and net tax capacity rate of the TIF District. To assist the County Auditor in this process, the City shall submit copies of the TIF Plan, the resolution establishing the TIF District and adopting"the TIF Plan, and a listing of any prior planned improvements. The City shall also send the County Assessor any assessment agreement establishing the minimum market value of land and improvements in the TIF District, and shall request that the County Assessor review and certify this assessment agreementas reasonable. The County shall distribute to the City the amount of tax increment as it becomes available. The amount of tax increment in any year represents the applicable property taxes generated by the retained captured net tax capacity of the TIF District. The amount of tax increment may change due to development anticipated by the TIF Plan, other development, inflation of property values, or changes in property classification rates or formulas. In administering and implementing the TIF Plan, the following actions should occur on an annual basis: (1) prior to July 1, the City shall notify the County Assessor of any new development that has occurred in the TIF District during the past year to insure that the new value will be recorded in a timely manner. (2) if the County Auditor receives the request for certification of a new TIF District, or for modification of an existing TIF District, before July 1, the request shall be recognized in determining local tax rates for the current and subsequent evy years. Requests received on or after July 1 shall be used to determine local tax rates in subsequent years. (3) each year the County;Auditor shall certify the amount of the original net tax capacity of the TIF District. The amount certified shall reflect any changes that occur as a result of the following: (a) the value of property that changes from tax-exempt to taxable shall be added to the original net tax capacity of the TIF District. The reverse shall also apply; (b) the original net tax capacity may be modified by any approved enlargement or reduction of the TIF District; (c) if laws governing the classification of real property cause changes to the percentage of estimated market value to be applied for property tax purposes, then the resulting increase or decrease in net tax capacity shall be applied proportionately to the original net tax capacity and the retained captured net tax capacity of the TIF District. The County Auditor shall notify the City of all changes made to the original net tax capacity of the TIF District. SPRINGSTED Page 14 City of Hugo, Minnesota section AB Filing TIF Plan, Financial Reporting and Disclosure Requirements The City will file the TIF Plan, and any subsequent amendments thereto,with the Commissioner of Revenue and the Office of the State Auditor pursuant to Minnesota Statutes, Section 469.175,subdivision 4A. The City will comply with all reporting requirements for the TIF District under Minnesota Statutes, Section 469.175, subdivisions 5 and 6. SPRINGSTED Page 15 Exhibit 1 MAP OF TAX INCREMENT FINANCING (REDEVELOPMENT)DISTRICT NO. 1-2 ARM .� .r. ;m ___ Legend �— TIF—District SPRINGSTED Page 16 Exhibit 1 MAP OF DEVELOPMENT DISTRICT NO. SPRINGSTED Page 17 Exhibit 11 Boundaries of Tax Increment Financing (Redevelopment)District No. 1-2 Parcel ID Number Legal Description 20.031.21.23.0025 HUGO Lot-001 Block-004 LOTS 1 TO 12 INC 004 20.031.21.23.0017 COUNTY AUDITOR'S PLAT#7 LOT-017 .46A LOT 17 COUNTY AUD PLAT 7 20.031.21.24.0064 HUGO Lot-004 Block-009 S60 FT OF W30 FT LOT 4 009 HUGO ADD 20.031.21.24.0062 HUGO Lot-002 Block-009 WLY 10 FT OF LOT 2 009 &ALL OF LOT 3 BLK 9 HUGO ADD 20.031.21.24.0066 HUGO LOT-004 BLOCK-010 HUGO ADD 20.031.21.34.0077 TRAEGER'S ADD PLAT 2 LOT-008 BLOCK-001 TRAEGERS ADD PLAT 2 20.031.21.24.0063 HUGO Lot-004 Block-009 LOTS 4&5 009 EXC SOUTH 60 FT OF W 30 FT OF LOT 4 HUGO ADD 20.031.21.24.0065 HUGO Lot-001 Block-010 LOTS 1-3 010 20.031.21.24.0012 COUNTY AUDITOR'S PLAT#7 Lot-002.17A PT OF LOT 2 BEG AT A PT IN SD LOT 2 30 FT SOUTH & 150 FT NORTH 89DEG.33'EAST OF NW CORNER OF SD LOT 2 THENCE CONTINUING NORTH 89DEG. 33EAST & PAR TO NORTH LINE OF SD LOT 2 FOR 50 FT THENCE SOUTH & PAR TO WEST LINE OF LOT 2 FOR 150 FT THENCE SOUTH 89DEG.33'WEST & PAR TO NORTH LINE OF LOT 2 FOR 50 FT THEN NORTH & PAR TO WEST LINE OF LOT 2 FOR 150 FT TO PT OF BEG. COUNTY AUD PLAT 7 20.031.21.34.0078 VAIL ADD LOT-001 BLOCK-001 20.031.21.24.0011 COUNTY AUDITOR'S PLAT#7 Lot-002 PART OF LOT 2 DESC AS FOLL BEG AT NW COR OF SD LOT 2 THN S 3OFT THN N89DEG33'E 20OFT TO PT OF BEG OF LAND TO BE DESC (HEREIN REFERRED TO AS PT A THN CONT N89DEG33E &PAR TO N LINE OF SD LOT 2 FOR DIST OF 100FT THN S &PAR TO W LINE TO LOT 2 FOR DIST OF 15OFT THN S 89DEG33W & PAR TO N LINE OF LOT 2 FOR DIST OF 100FT THN N&PAR TO W UNE OF LOT 2 FOR DIST OF 15OFT TO PT A&THERE TERM ACCORDING TO PLAT THEREOF ON FILE & OF REC IN OFC OF REG OF DEEDS WITHIN&FOR SD CO AUDITOR'S PLAT#7 20.031.21.34.0079 VAIL ADD LOT-002 BLOCK-001 20.031.21.34.0020 COUNTY AUDITOR'S PLAT #7 Lot-038 ALL THAT PART OF LOT NUMBER 38 COUN- TY AUDITOR'S PLAT NUMBER 7-WASHINGTO COUNTY MINNESOTA DESCRIBED AS FOLLOW COMMENCING AT THE INTERSECTION OF THE EASTERLY RIGHT OF WAY LINE OF THE PRESENT U.S. HIGHWAY NUMBER 61 AND'THE NORTH LINE OF GOVERNMENT LOT NUMBER 5-SECTION 20 TOWNSHIP 31NORTH RANGE 21 WEST WASHINGTON COUNTY MINN ESOTA THENCE SOUTH 11 DEGREES 57 MIN UTES WEST ALONG SAID PRESENT RIGHT OF WAY LINE OF HIGHWAY 61 FOR 1515.2 FEET THENCE EAST AND PARALLEL WITH THE SOUTH LINE OF SAID SECTION 20 FOR 275.4 FEET WHICH IS THE POINT OF BEGINNING OF THIS DESCRIPTION THENCE NORTH AT RIGHT ANGLES 89.6 FEET THEN EAST AT RIGHT ANGLES 105 FEET THENCE SOUTH AT RIGHT ANGLES 107.2 FEET THENCE NORTH 69 DEGREES 14 MINUTES WEST FOR 49.73 FEET THENCE AND WEST AND PARALLEL WITH THE SOUTH LINE OF SECTION 20 FOR 58.46 FEET TO THE POINT OF BEGINNING COUNTY AUDITOR'S PLAT NUMBER 7 HUGO CITY 20.031.21.21.0029 GRANGER'S ADD LOT-005 GRANGERS ADD 20.031.21.24.0018 COUNTY AUDITOR'S PLAT#7 Lot-002 PART OF LOT 2 BEG AT A PT IN SD LOT 2 30 FT SOUTH &300 FT NORTH 89DEG.33EAST OF THE NW CORNER THERE OF THENCE CONTINUING NORTH 89DEG.33' EAST & PAR TO THE NORTH LINE OF SD LOT 2 FOR 68.5 FT TO THE WLY EDGE OF THE N P RR R/W THENCE SLY ALONG THE WILY EDGE OF SD R/W 153.4 FT THENCE S89DEG.33WEST FOR 37.5 FT THENCE NORTH 150 FT TO PT OF BEG. COUNTY AUD. PLAT 7 SPRINGSTED Page 18 Exhibit 11 20.031.21.24.0070 COUNTY AUDITOR'S PLAT #7 Lot-005 THAT PT LOT 5 COUNTY AUDITOR'S PLAT#? DESC:BEG AT THE NW CORN OF SD LOT RUN THN ELY ALG NLY LINE OF SD LOT 15OFT TO A PT THN SLY ON LINE PAR WITH THE WLY LINE OF SD LOT 10OFT TO A PT THN WLY ON A LINE PAR WITH THE NLY LINE OF SD LOT 15OFT M/L TO THE WLY LINE OF SD LOT THN NLY ALG THE WLY LINE OF SD LOT 10OFT M/L TO PLACE OF BEG ALSO:BEG AT A PT IN WLY LINE SD LOT 5 10OFT SLY FROM THE NW CORN THEREOF THN RUN E & PAR WITH THE NLY LINE OF SD LOT 15OFT TO A PT THN SLY&PAR WITH THE WLY LINE OF SD LOT 50 FT TO A PT THN W&PAR WITH THE N LINE OF SD LOT 15OFT M/L TO THE WLY LINE OF SD LOT THN NLY ALG THE WLY LINE OF SD LOT 50FT M/L TO THE PLACE OF BEG COUNTY AUDITOR'S PLAT#7 HUGO CITY 20.031.21.24.0025 COUNTY AUDITOR'S PLAT#7 LOT-006.48A LOT C COUNTY AUD PLAT 7 20.031.21.24.0027 COUNTY AUDITOR'S PLAT #7 Lot-007 PT OF LOT 7_BEING W 178 FT AS MEAS ALONG N &S LINE OF N 209 FT EXC THE E 89 FT THEREOF CO AUDITORS PLAT #7 20.031.21.21.0073 Sect-20 Twp-031 Range-021 PT NE1/4-NW1/4 203121 DESC AS FOLL COM NE COR SD NE1/4-NW1/4 THN AZ N 179DEG43'38' WACO C SYS NORTH ZONE 1322.12FT TO SE COR SD NE1/4-NW1/4 THN AZ 269DEG05'26" ALG S LN SD NE1/4NW1/4 391.2FT THN AZ 359DEG43'38" PARL WITH W LN SD NE1/4-NW1/4 33FT TO N LN 147TH ST FOR POB OF LAND TO BE DESC THN CONT AZ 359DEG43'38" ALG SD PARL LN 133.5FT TO ELY EXT OF MOST SLY LN OF LAND DESC WD REC'D DEC 17 1970 BK 310 PG 525 THN AZ 269DEG0626" ALG SD EXT LN 137.83FT TO LN PARL WITH ELY LN HWY 61 &208FT ELY OF SD ELY LN AS MEAS ALG SD N LN OF 147TH ST N THN AZ 191DEG02'10" ALG SD PARL LN 136.45FT TO N LN SD 147TH ST N THN AZ 89DEG05"26"ALG SD N LN 164.59FT TO POB 20.031.21.21.0017 Sect-20 Twp-031 Range-021 PT NE1/4-NW114 S20T31R21 DESC AS FOLL:COM AT NE CORN OF SD1/4 THN ON AZIMUTH FROM N OF 179DEG4338" ORIENTED TO WASH CO COORDINATE SYS NORTH ZONE A DIST 1322.12FT TO SE CORN OF SD1/4-1/4 THN ON AZIMUTH OF 269DEG05'26"ALG THE SO LINE OF SD 1/41/4 A DIST 770.38FT TO THE ELY LINE OF US HWY #61 THN ON AZIMUTH OF 11DEG02'10"ALG SEI ELY LINEA DIST OF 33.73FT TON LINE OF 147TH STN THN CONTINU ON AN AZIMUTH OF 11DEG02'10"ALG SD ELY LINE A DIST 208FT TO A PT HEREINAFTER REFERRED TO AS"PT A " THN CONTINU ON AN AZIMUTH OF 11DEG 0710" ALG SD ELY LINE A DIST OF 83 FT THN ON AN AZIMUTH OF 101DEG02'10"A DIST 13OFT TO PT OF BEG OF LAND TO BE DESC THN CONTINU ON AN AZIMUTH OF 101DEG02'10" A DIST OF 65.51FT THN ON AZIMUTH 179DEG43'38" A DIST 40.74 FT TO PT ON AZIMUTH OF 89DEG05'26" &A DIST OF 208FT FROM SD "POINT A"THN ON AZIMUTH OF 89DEG05'26" DIST OF 123.80FT TO A LINE WHICH IS PAR WITH THE E LINE OF SD1/4 1/4 OF SEC20 & DIST 391,1.7FT (391FT 2 INCHES) W OF SD LINE AS MEASUR ALG THE SO LINE OF SD114-1/4 THN ON AZIMUTH OF 359DEG43'38" ALG SD PAR LINE DIST 191.49FT TO SO LINE OF 148TH ST N AS DESC IN A QUIT CLAIM DEED RECORDED 6-26- 1974 AS DOC#324300 THN ON AN AZIMUTH OF 269DEG05'26"ALG SD SO LINE A DIST 160.54FT TO THE INTERSECT WITH LINE ON AN AZIMUTH OF 11DEG02'10" FROM PT OF BEG THN ON AZIMUTH OF 191DEG02'10 " A DIST 140.22FT TO PT OF BEG SUBJ TO EASE 20.031.21.24.0056 KENNETH N GRANGER ADD Lot-003 SUBJ TO 20FT WIDE DRAINAGE EASE 20.031.21.24.0026 COUNTY AUDITOR'S PLAT #7 Lot-007 W 178FT OF N 209FT OF LOT 7 CO AUDITORS PLAT#7 EXC W 89FT THEREOF 20.031.21.24.0057 KENNETH N GRANGER ADD LOT-004 KENNETH N. GRANGER ADD 20.031.21.24.0028 COUNTY AUDITOR'S PLAT#7 Lot-007 .50A PT OF LOT 7 BEG AT A PT IN N LINE OF LOT 7 208 FT 5 IN W FROM NE COR THENCE S PAR WITH E LINE OF LOT 7 SPRINGSTED Page 19 Exhibit 11 209 FT THENCE W 104 FT 2.5 IN THENCE N 209 FT THENCE E 104 FT 2.5 IN TO BEG. COUNTY AUD PLAT 7 20.031.21.24.0058 KENNETH N GRANGER ADD LOT-005 20.031.21.24.0030 COUNTY AUDITOR'S PLAT #7 Lot-007 THAT CERTAIN PT OF LOT 7 IN COUNTY AUDITOR'S PLAT #7 IN VILLAGE OF HUGO & BEING PT OF GOV LOT 4 IN S20T3lR21 WASH CO MN DESC:BEG @ NE CORN SD LOT 7 THN W ALG THE N LN THEREOF FOR 79.21FT THN S PAR TO E LN SD LOT 7 FOR 209FT THN E PAR TO DESC 1ST COURSE FOR 79.21FT TO E LN LOT 7 THN N ALG SD E LN FOR 209FT TO POB -TRACT AS DES IS SUBJ TO 1/2 THE WIDTH OF ONEKA RD ALG THE N LN OR 33FT 20.031.21.24.0059 KENNETH N GRANGER ADD LOT-006 29.031.21.23.0001 Sect-29 Twp-031 Range-021 PT OF SW1/4 OF NW1/4 293121 NORTH 2 RODS LYING EAST OF ROAD EXC TO HWY 29.031.21.22.0004 Sect-29 Twp-031 Range-021 S 10A OF S 20A OF THAT PT N1/2-NW 114 S29 T31 R21 LYING E OF RR R/W & HWY 61 EXC: THAT PT SD S 20A DESC AS FOLL: COM AT INTER ELY LN SD HWY 61 &LN 218FT S OF N LN SD S 20A;THN ELY&PARL W/N LN SD S 20A 377.78FT; THN S AT RT ANG 30FT TO POB; THN CONT S 21OFT; THN ELY AT RT ANG 21OFT; THN NLY AT RT ANG 21OFT; THN WLY AT RT ANG 21OFT TO POB;TOG W/30FT RD EASE'.EXC: THAT PT SD S 20A DESC AS FOLL: BEG AT INTER ELY RNV LN NEW HWY 61 &LN 248FTS OF N LN SD S 20A 384.08FT; THN S AT RT ANG 140FT; THN WLY TO PT ON SD ELY R/W LN BEING 108. 81 FT SWLY OF POB; THN NLY ALG SD R/W LN 108.81 FT TO POB. EXC THAT PT SD S 20A DESC AS FOLL: COM AT INTER NEW ELY RNV LN SD HWY 61 &LN 218FT S OF N LN SD S 20A MEAS AT RT'ANG THERETO; THN ELY & PARL W/ N LN SD S 20 A 587.78FT TO POB LAND TO BE DESA THN S AT RT ANG 240FT; THN W AT RT ANG 21OFT; THN S AT RT ANG&TO S LN SD N1/2-NW 1/4; THN E ON SD S LN TO SE COR SID N1/2-NW1/4; THN N ON E LN SD N1/2-NW1/4 TO LN DRAWN ELY FROM POB&PARL W/N LN SD S 20A;THN WLY TO POB 29.031.21.21.0009 Sect-29 Twp-031 Range-021 PT OF N112 OF NW1/4 293121 BEING THAT PART OF THE NORTH 10 ACRES OF SOUTH 20 AC RES LYING ELY OF S.T.H. 61 &DES AS FOL, COM AT INTER OF ELY LINE OF HWY 61 &A LINE 218 FT S OF N LINE OF SD S 20 ACRES THEN E & PAR WITH N LINE OF SD S 20 ACRES 377.78 FT THEN S AT RT ANG 30 FT TO PT OF BEG THEN CON S 210 FT THEN ELY AT RT ANG 210 FT THEN NLY AT RT ANG 210 FT THEN WLY AT RT ANG 210 FT TO PT OF BEG. SUBJ TO EASE 29.031.21.21.0008 Sect-29 Twp-031 Range-021 PT OF N1/2-NW1/4 293121 COM AT INTERS OF S LINE OF N1/2-NW1/4 OF SD SEC 29 WITH E R/W LINE OF TRUNK HWY #61 AS NOW WIDENED TO 111FT THN N11DEG51'E ALONG SD E R/W LINE DIST OF 501AFT THN_E &PAR WITH S LINE OF SD N1/2 NW1/4 DIST OF 40OFT TO ACTUAL PT OF BEG OF TRACT HEREIN DESC & CONVEYED THN CONT E ALONG SD PAR LINE DIST OF 220FT THN S AT RT ANG DIST OF 218FT THN W &PAR WITH S LINE OF SD N1/2 NW114 DIST OF 220FT THN N AT RT ANG DIST OF 218FT TO ACTUAL PT OF BEG SUBJ TO RD EASE 29.031.21.22.0008 Sect-29 Twp-031 Range-021 PT OF NW1/4-NW1/4 S29 T31 R21 DESC AS FOLL: COM AT INTER OF S LN SD TRACT&E RNV LN HWY 61-NOW WID TO 111 FT-THN NLY ALG SD HWY R/W LN 399.23FT TO POB THN CONT NLY ALG SD R/W LN 102.17FT THN E PARL TO S LN SD NW1/4-NW1/4 136.56FT THN ELY ON STRT LN & ITS EXT TO PT 173.35FT E MEAS ALG SD PARL LN FROM E R/W LN SD HWY 61 & 5.45 FT S FROM PARL LN 21.68FT THN S ON LN DRAWN AT RT ANG TO S LN SD NW1/4 96.74FT THN W PARL TO S LN SD NW1/4178.93FT TO POB 29.031.21.22.0001 Sect-29 Twp-031 Range-021 PT OF N1/2-NW1/4 293121 BEG AT INTER S LN SD TRACT&E LN NEW HWY 61; THN N11DEG51'E ALG SD HWY LN 501AFT TO POB; SPRINGSTED Page 20 Exhibit 11 THN ELY & PARL W/ S LN SD N1/2 400FT; THN NLY AT RT ANG TO LAST CRSE 357.26FT; THN WLY&PARL W/S LN SD N1/2 325.23FT TO INTER W/E LN SD HWY 61; THN S11DEG 51'W ALG SD HWY 61 365FT TO POB SUBJ TO EASE 11DEG51'W ALONG SD HWY A DIST OF 365FT TO ACTUAL PT OF BEG ALSO SUBJ TO UTILITY EASE OF RECORD -SUBJ TO DRIVEWAY EASE- MT & MAINTENANCE AGREEMT 29.031.21.22.0007 Sect-29 Twp-031 Range-021 N1/2-NW1/4 S29T31R21 DESC AS FOLL: COM AT INTER OF N LN SD SEC 29 W/ ELY LN HWY 61-NOW WID TO 111FT- SD PT OF INTER BEING 1103.76FT E FROM NW COR SD SEC 29 THN E ALG N LN SD SEC 29 285FT THN S AT RT ANG TO SD N LN 278.89FT THN W & PARL W/ SD N LN 343.71FT TO INTER W/ ELY LN HWY 61 THN N11DEG53'19"E ALG SD ELY LN 285FT TO POB SUBJ TO RD EASE EXC THE FOLL DESC TRACT: COM AT INTER OF N LN SD SEC29 W/ELY LN OF HWY 61 -NOW WID TO 111FT-SD PT OF INTER BEING 1103.76FT E OF NW COR SD SEC 29 THN S11DEG53'19"W ALG SD ELY LN 33.72FT TO APOB OF TRAC TO BE DESC THN CONT S11DEG53' 19"W ALG SD ELY LN 10OFT THN N50DEG56'40"E'155.31FT TO ITS INTER W/ LN DRAWN PARL W/&33FT S OF SD N LN THN W ALG SD PARL LN 100FT TO APOB ALSO SUBJ TO EASE A DIST OF 10OFT THN 'N50DEG56'40"E A DIST OF 155.31FT TO ITS INTERSECT WITH A LINE DRAWN PAR WITH & 33FT S OF THE N LINE OF SD SEC29 THN DUE W ALG SD PAR LINE A DIST OF 10OFT TO THE ACTUAL PT OF BEG-ALSO SUBJ TO SANITARY SWR EASEMN HUGO 20.031.21.33.0010 COUNTY AUDITOR'S PLAT #7 Lot-037 1A LOT 37 EXC TO HWY COUNTY AUD PLAT 7 20.031.21.33.0009 COUNTY AUDITOR'S PLAT#7 LOT-036 EXC TO HWY 20.031.21.33.0004 COUNTY AUDITOR'S PLAT #7 Lot-035 PART OF LOT 35 CTY AUDITOR'S PLAT#7 DESC AS FOLL COM AT SW COR OF SWI/4 OF S20T31R21 THN E ALONG S LINE OF SD SEC 20 DIST OF 512:21FT THN N AT RT ANG DIST OF 110FT TO PT OF BEG OF PROPERTYHEREIN TOBEDESC THN E AT RT ANG DIST OF 75FT THN N AT RT ANG DIST OF 90FT THN E AT RT ANG DIST OF 284AFT THN S AT RT ANG DIST OF 37FT THN SWLY PAR TO RR R/W DIST OF 166.59FT THN E ALONG S UNE OF SD SEC 20 DIST OF 51.10FT THN NELY ALONG SD RR R/W DIST OF 372.59FT THN W PAR TO S.LINE OF SEC 20 DIST OF 452.94FT THN S AT RT ANG DIST OF 254.49FT TO PT OF BEG ACCORDING TO PLAT THEREOF ON FILE &OF REC IN OFC OF CTY REC 20.031.21.34.0028 Sect-20 Twp-031 Range-021 COUNTY AUDITOR'S PLAT #7 Lot-038 THAT PT OF LOT 38 AUDITOR'S PLAT#7&BEING A PT OF GOV LOT 6&OF THE SW/14-SW1/4 S20T3lR21W DESC AS FOLL: BEG AT JUDICIAL LANDMARK ON E LINE OF US HWY#61 AS NOW ESTABLISHED & THE W LINE OF SD AUDITOR'S LOT 38 SD JUDICIAL LANDMARK BEING 909.48FT NLY FROM THE SO LINE OF SEC 20 AS MEASUR ALG SD W LINE OF AUDITOR'S LOT 38 & E LINE OF STATE HWY #61 FROM THE SO LINE OF SD SEC 20& 136FT ELY OF CIL OF BN INC RNV MEASUR AT RT ANG THERETO THN E PAR WITH SO LINE OF SD SEC 20 FOR 80FT TO JUDICIAL LANDMARK THN SO AT RT ANG FOR 147.48FT TO JUDICIAL LANDMAR ON N LINE OF HUGO PLACE AS NOW ESTAB 66FT WIDE THN WLY ALG SD STREET LINE DIST 111.03FT TO JUDICIAL LANDMARK AT INTERSECT THEREOF WITH SD E LINE OF US HWY#61 THN NLY ALG SD HWY LINE FOR 150.71FT TO PT OF BEG AUDITOR'S PLAT#7 20.031.21.34.0026 COUNTY AUDITOR'S PLAT#7 Lot-038 PART OF LOT 38 OF CO AUDITORS PLAT#7 WASH CO MN DESC AS FOLL BEG AT PT ON E LINE OF WHITE BR&HUGO RD 13 CHAINS & 78 LINKS NLY FROM S LINE OF SD SEC MEAS ON E LINE OF SD RD THN NELY ALONG SD E LINE OF SD RD 1.58 CHAINS THN ELY PAR WITH S LINE OF SD SEC 6.35 CHAINS THN S PAR WITH AFORESAID E LINE 1.58 CHAINS THN SPRINGSTED Page 21 Exhibit 11 W 6,35 CHAINS TO PLACE OF BEG 20.031.21.34.0024 COUNTY AUDITOR'S PLAT #7 Lot-038 PART OF LOT 38 BEG AT A PT ON E LINE OF R/W OF TRUNK HWY 61 WHICH IS 1013.76 FT NLY MEASURED ALONG E LINE OF TRUNK HWY 61 FROM S LINE OF SEC 20 THEN E PAR WITH S LINE SD SEC 20 A DIS OF 170 FT TO A PT THEN NLY PAR WITH ELY R/W LINE OF HWY 6164 FT TO A PT THEN W PAR WITH S LINE OF SEC 20 170 FT M/L TO E R/W LINE OF HWY 61 THEN SLY ON E R/W LINE OF HWY 61 A DIS 64 FT MIL TO PT OF BEG. COUNTY AUD. PLAT 7 20.031.21.34.0025 COUNTY AUDITOR'S PLAT #7 Lot-038 PART OF LOT 38 BEG AT A PT ON E R/W LINE OF HWY 61 WHICH IS 1077.76 FT NLY MEASURED ALONG E LINE OF HWY 61 FROM S LINE OF SEC 20 THEN E PAR WITH SLLINE OF SD SEC 20 A DIS OF 170 FT TO A PT THEN NLY PAR WITH ELY R/W LINE OF HWY 61 60 FT TO A PT THEN W PAR WITH S LINE OF SD SEC 20 170 FT M/L TO E R/W LINE OF SD HWY 61 THEN SLY ON E R/W LINE SD HWY A DIS OF 60 FT M/L TO PT OF BEG COUNTY AUDITOR PLAT 7 20.031.21.34.0023 COUNTY AUDITOR'S PLAT#7 Lot-038 PT OF LOT 38 BEG AT`A PT IN E LINE OF H WY THAT IS 337.6 FT SLY FROM SW COR OF LOT 33 CO AUD PLAT 7 THEN SLY ALONG E LIN E OF SD HWY FOR 91.6 FT TO APT THEN E PARA WITH S LINE OF SEC 20 FOR A DIS OF 275.4 FT TO A PT THEN N90DEG. 89.6 FT TO A PT THEN W90DEG.& PAR TO S LINE OF SEC 20 FOR A DIS OF 256.4 FT TO PT OF BEG. COUNTY AUD. PLAT NO. 7 20.031.21.31.0024 Sect-20 Twp-031 Rage-021 PT S1/2 203121 DESC AS COM @ W1/4 COR OF SD S20 THN N89DEG-07'38"E ASMBRG ALG E=W1/4 LN SD S20 DIST 1591.18FT TO INTER OF ELY R/WLN OF US'HWY#t61 (AK A: STATE RD 5) S ELY R/W LN BEING DIST 33FT ELY OF THE C/L OF SID HWY THN`S11DEG02'09"W ALG SD R/W LN DIST 1423.6FT TO ACTUAL POB; OF TROT.TO BE DESC THN N11DEG02'09"E BACK ALG SD ELY R/W LN DIST 51.10FT THN N89DEG0921"E 249.53FT THN N00 DEG52'22"W 280.39FT TO THE S LN OF LT 33-AUD PLAT#? ACCORDI TO REC PLAT THERE OF THN N89- DEG07'38"E ALG SLY LN OF SD LT 33 & ITS ELY EXT THEREOF TO SHRLN OF EGG LK THN SLY ALG SD SHRLN TO PT OF INTER WITH LN DRWY ELY FROM THE ACTUAL POB SD LN BEING PAR/W S LN OF GV LT 6 SD S20 THN S89DEG0821"W ALG SD PAR LN TO ACTUAL POB EXC PRCL 10 WACO -R/W PLAT 147 LYING WITHIN S20T31R21 SUBJ TO EASE 20.031.21.31.0002 COUNTY AUDITOR'S PLAT #7 Lot-027 PART OF LOTS 27 & 28 BEG AT AN IRON PIPE MONUMENT SET AT THE INTERSEC-TION OF THE NLY LINE OF GOV LOT 5 SEC 20 T31 R21 WITH THE ELY LINE OF HWY NO. 61 & RUNNING THENCE SLY ALONG SAID ELY OF SAID HWY 55.70 FT THENCE SELY ON A STRAIGHT LINE TO A POINT ON THE SOUTH LINE OF LOT 27 SAID POINT BEING 53 FT EAST OF THE SW COR OF SAID LOT 27 THENCE ELY ALONG SAID SOUTH LINE OF LOT 27 TO THE SE COR OF LOT 27 THENCE SOUTH ALONG WLY LINE OF SAID LOT 28 TO A POINT WHICH IS 50 FT NORTH OF THE SW COR OF LOT 28 THENCE ELY ON A STRAIGHT LINE WHICH IS PARA- LLEL TO &50 FT NORTH OF SLY LINE OF LOT 28 TO WLY SHORELINE OF EGG LAKE THENCE NLY ALONG THE WLY SHORELINE OF EGG LAKE TO ITS IN-TERSECTION WITH THE NLY LINE OF SAID LOT 28 THENCE WLY ALONG THE NLY LINE OF LOT 28&THE NLY LINE OF LOT 5 SEC 20 T31 R21 TO BEG. COUNTY AUD PLAT 7 20.031.21.31.0007 COUNTY AUDITOR'S PLAT#7 Lot-030 PART OF LOT 30 BEG AT THE SE COR OF LOT 27 THENCE SOUTH A DISTANCE OF 74 FT TO A POINT THENCE NWLY ON A LINE DRAWN FROM LAST DESCRIBED POINT TO A POINT IN THE EAST LINE OF PUBLIC HWY NO. 61 AT A POINT 100.27 FT SWLY FROM THE NW COR OF SAID LOT 27 MEASURING ALONG THE EAST LINE OF SAID PUBLIC HWY A DIS-TANCE OF 71 FT TO A POINT THENCE NORTH TO A POINT 14 FT SOUTH OF THE SOUTH SPRINGSTED Page 22 Exhibit 11 LINE OF SAID LOT 27 AFORE- SAID THENCE WEST ON A LINE PARALLEL WITH THE SOUTH LINE OF SAID LOT 27 TO THE EAST LINE OF SAID PUBLIC HWY THENCE NLY ALONG THE EAST LINE OF SAID PUBLIC HWY 14 FT MORE OR LESS TO THE SW COR OF SAID LOT 27 THENCE EAST ALONG THE SOUTH LINE OF SAID LOT 27 TO THE PLACE OF BEG. COUNTY AUD. PLAT 20.031.21.24.0052 COUNTY AUDITOR'S PLAT #7 Lot-016 PT LOT 16 BEG AT SW CORN SD LOT 16 THEN RUN NLY PAR WITH HWY 61 30 FT THEN E 62 FT PAR TO S LINE LOT 16 THEN S 30 FT PAR TO HWY 61 THEN W 62 ALONG S LINE LOT 16 TO PT OF BEG. EXC-COM AT PT ON W LINE LOT 16 WHCH 30 FT N OF SW COR THEREOF & ALSO E LINE HWY 61 THEN R IN ELY DIRECTION PAR WITH S LINE LOT 16 62 FT TO PT THEN R IN SLY DIRECT&PAR WITH W LINE LOT 16 DIST 3 FT TO PT THEN RUN NWLY ALONG A LINE TO PT ON W LINE WHICH IS 30 FT N OF SW COR & ALSO PT OF BEG. COUNTY AUD. PLAT NO.7 20.031.21.24.0051 COUNTY AUDITOR'S PLAT #7 Lot-016 EXC THAT PT CONVEYED TO CLARA ETHIER DESC AS FOLLOWS COM AT PT ON W LINE OF SD LOT 16 WHICH IS ALSO E LINE OF TRUNK HWY 61 DIST OF 30FT N OF SW COR THEREOF MEAS ALONG SD E LINE THN RUNNING,IN SLY DIRECTION ALONG W LINE OF SD LOT 16&PAR WITH E LINE OF TRUNK HWY 61 FOR 30FT TO SD SW COR OF SD LOT 16 THN RUNNING ELY ALONG S LINE OF SD LOT 16 DIST OF 62FT TO PT THN RUNNING NLY ALONG LINE PAR TO SD W LINE OF SD LOT 16 WHICH IS ALSO PAR WITH E LINE OF TRUNK HWY 61 DIST OF 27FT TO PT THN RUNNING IN NWLY DIRECTION IN STRAIGHT LINE TO PT OF BEG ACCORDING TO PLAT THEREOF ON FILE & OF REC IN OFFICE OF REG OF DEEDS WITHIN & FOR SD CO & EXC THAT PT THEREOF- DESC AS FOLLOWS PT OF LOT 16 OF CO AUDITORS PLAT#7 DESC AS FOLLOWS BEG AT NWLY COR OF LOT 16 OF CO AUDITORS PLAT #7 IN VILLAGE OF HUGO MN THN SELY ON LINE DRAWN AT RIGHT ANG TO WILY LINE OF SD LOT 16 FOR DIST OF 279FT M/L TO WLY SHORE LINE OF EGG LK THN NLY ALONG SD WILY SHORELINE OF EGG LK FOR DIST OF 56FT M/L TO ITS INTERS WITH N LINE OF SD LOT 16 THN W ALONG SD N LINE OF LOT 16 FOR 270FT M/L TO PT OF BEG TOGETHER WITH EASE OVER & ACROSS 15FT WIDE TRACT EXT FROM WLY LINE OF LOT 16 TO SD WLY SHORELINE OF EGG LK NLY LINE OF SD 15FT WIDE EASE BEING SLY LINE OF ABOVE DESC TRACT OF LAND PURPOSE OF SD EASE SHALL BE FOR FOLLOWING STATED PURPOSE TO BE USED AS JOINT DRIVEWAY FOR INGRESS & EGRESS BETWEEN PROPERTY OF PARTY OF SECOND PT HIS HEIRS OR ASSIGNS &ADJ PROPERTY OWNERS AS SET FORTH IN THAT DEED BETWEEN DONALD F CARPENTER & JOY M CARPENTER HUSBAND & WIFE TO VILLAGE OF HUGO MUNICIPAL CORPORATION CO AUDITORS PLAT#7 SUBJ TO NW BELL TELEPHONE CO EASEMEN 20.031.21.24.0050 COUNTY AUDITOR'S PLAT#7 Lot-015 PT LOTS 15& 16 BEG AT NWLY CORN LOT 15 THEN SWLY ALONG WLY LINE SD LOT 15 FOR 46 FT TO SWLY CORN THERE :OF THEN SELY AT RT ANG DIST 175 FT THEN NLY ALONG LINE PAR TO WLY LINE DIST 46 FT THEN WLY 175 FT PAR TO SLY LINE THEREOF TO PT OF BEG. SUBJ WEASEMENT.CO. AUDITORS PLAT 7 20.031.21.24.0047 COUNTY AUDITOR'S PLAT#7 Lot-013.63A S 80 FT LOT 13 COUNTY AUD PLAT 7 20.031.21.24.0045 COUNTY AUDITOR'S PLAT#7 LOT-012.32A LOT 12 COUNTY AUD PLAT 7 20.031.21.24.0008 COUNTY AUDITOR'S PLAT#7 Lot-002 .17A PART OF LOT 2 BEG AT A PT ON THE WEST LINE OF SD LOT 2 - 30 FT SOUTH OF THE NW CORNER THEREOF THENCE NORTH 89DEG.33E PAR WITH NORTH LINE OF LOT 2 FOR 150 FT THENCE SOUTH 50 FT THENCE SOUTH 89DEG.33'WEST FOR 150 FT TO THE WEST LINE OF LOT 2 THENCE NORTH ALONG SD WEST LINE FOR 50 FT TO BEG. EXC E 10 FT. COUNTY AUD. PLAT 7 SPRINGSTED Page 23 Exhibit 11 20.031.21.24.0009 COUNTY AUDITOR'S PLAT#7 Lot-002 PT LOT 2 BEG AT A PT ON W LINE SD LOT 2 30 FT S OF NW COR THEREO THEN N89DEG.33'E PAR WITH N LINE OF LOT 2 FOR 150 FT TO PT OF BEG OF PROPERTY HEREIN TO BE CONVEY ED THEN S 100 FT THEN S89DEG.33W FOR 10 FT THEN N PAR TO 1ST COURSE FOR 100 FT THEN E89DEG.33E FOR 10 F TO PT OF BEG. COUNTY AUD, PLAT 20.031.21.24.0015 COUNTY AUDITOR'S PLAT#7 Lot-002 PT LOT 2 COM AT NW CORN LOT 2 THEN S ALONG W LINE LOT 2 FOR 180 FT THEN N89DEG.33E FOR 150 FT TO PT OF BEG THIS DESC.THEN CONT N89DEG.33'E FOR 187.5 FT M/L TO WILY R/W LINE N P RR CO THEN SLY ALONG SD WLY R/W LINE 61.4 FT'THEN 89DEG.33'W 177.6FT THEN N & PAR WITH SD WLY LINE LOT 2 FOR 60 FT TO PT BEG. COUNTY AUD. PLAT 7 20.031.21.24.0017 COUNTY AUDITOR'S PLAT#7 Lot-002 PT. LOT 2EOM AT NW CORN LOT 2 THEN S ALONG W LINE SD LOT 2 FOR 240 FT TO PT BEG.,THIS DESC. THEN N89DEG 33E 327.6 FT M/L TO WLY R/W LINE N P RR CO THEN SLY ALONG SD WLY R/W 76.7 FT THEN S89DEG.33'W 312.6 FT MIL TO WLY LINE LOT 2 THEN N ALONG SD W LINE LOT 2 FOR 75 FT TO PT BEG. COUNTY AUD. PLAT 20.031.21.24.0022 COUNTY AUDITOR'S PLAT#7 Lot-003 PT OF LOTS 3&4 COM AT NW COR OF LOT 3 CO. AUD. PLAT 7 THENCE RUN IN A SLY DIRECTION ALONG WLY LINE OF SD LOT 3 A DIST OF 157 FT TO A PT THENCE RUN IN AN ELY DIRECTION & PAR WITH NLY LINE OF LOTS 3 &4 OF CO. AUD. PLAT 7 A DIST OF 120 FT TO PT OF BEG OF LAND TO BE DESCRIBED THENCE RUN IN A NLY DIRECTION & PAR WITH WILY LINE OF SD LOT S A DIST OF 30 FT TO A PT THENCE RUN IN AN ELY DIRECTION &PAR WITH NLY LINE OF SD LOTS 3 &4 TO A PT ON ELY LINE OF SD LOT 4 THENCE RUN IN A SLY DIRECTION ALONG ELY LINE OF SD LOT 4 TO A PT WHICH IS SE COR OF SD LOT 4& NE COR OF LOT 1 BLK 10 HUGO THENCE RUN IN WILY`DIREC- TION & PAR WITH NLY LINE OF SD LO TS 3 &4 TO PT OF BEG. COUNTY AUD PLAT 7 20.031.21.24.0023 COUNTY AUDITOR'S PLAT #7 Lot-005 THAT PART OF THE NORTH 150 FEET OF LOT 5 COUNTY AUDITOR'S PLAT NUMBER 7 LYING EAST OF THE FOLLOWING DESCRIBE LINE:COMMENCING AT THE NORTHWEST COR NER OF SAID LOT 5 THENCE EAST ALONG THE NORTH LINE OF SAID LOT 5 A DIST- ANCE OF 150 FEET TO THE POINT OF BE- GINNING OF THE LINE TO BE DESCRIBED THENCE SOUTHWESTERLY ALONG A LINE PARALLEL WITH THE WESTERLY LINE OF SAID LOT 5 TO ITS INTERSECTION WITH THE SOUTH LINE OF THE NORTH 150 FEET TO SAID LOT 5 AND THERE TERMINATING ACCORDING TO THE RECORDED PLAT THER- EOF ON FILE AND ON RECORD IN THE OFFICE OF THE REGISTER OF DEEDS IN AND FOR SAID COUNTY COUNTY AUDITOR'S PLAT NUMBER 7 HUGO CITY 20.031.21.24.0038 COUNTY AUDITOR'S PLAT#7 Lot-008 PART OF LOT 8 OF CO AUDITOR'S PLAT#7 BEG AT PT ON WLY LINE OF SD LOT 8 (ALSO ELY LINE OF FOREST BLVD N) DIST 50FT NELY OF SW COR OF SD LOT 8 THIN NELY ALONG SD ELY RD LINE 83.9FT M/L TO PT DIST 287.54FT SWLY OF NW COR OF LOT 7 OF SD CO AUDITOR'S PLAT#7 THIN SELY DEFL 89DEG33'35" TO RT 117.6FT M/L TO INTERS WITH LINE DRAWN NELY PAR WITH WILY LINE OF SD LOT 8 FROM PT ON SLY LINE OF SD LOT 8 DIST 120FT E OF SW COR THEREOF THN SWLY ALONG SD PAR LINE 60.8FT M/L TO ITS INTERS WITH LINE DRAWN ELY PAR WITH S LINE OF SD LOT 8 FROM PT OF BEG THIN WLY ALONG SD PAR LINE 120FT TO PT OF BEG 20.031.21.24.0041 COUNTY AUDITOR'S PLAT#7 Lot-010 PT LOT 10-COUNTY AUDITORS PLAT NO.7 &THAT PT GOV LOT 4 S20T3lR21 BEING THE N1/2 OF LOT#10&PT OF THE S1/2 OF LOT#10 OF CO AUD PLAT#7 DESC AS FOLL:COM AT NW CORN OF SD S1/2 SPRINGSTED Page 24 Exhibit 11 OF LOT 410 THN E ALG THE N LINE THEREOF FOR 58FT THN SO AT RT ANGLE TO THE N LINE THEREOF FOR 7FT THNC NWLY TO PT OF BEG&ALSO DESC AS FOL THAT PT OF GOV LOT 4 S20T3lR21W CITY OF HUGO & THAT PT OF CO AUDITOR PLAT#7 ACCORDING TO THE PLAT THERE-OF ON FILE&OF RECORD IN THE OFFICE OF COUNTY RECORDER WASH CO MN DESC AS FOLL:COM AT NE CORN OF SD GOV LOT 4 THN S89DEG05'26"W BEAR ARE BASED ON WASH CO PROJECT COORDINATE SYSTEM NORTH ZONE ALG THE N LINE OF SD GOV LOT 4 A DIST 770.34FT THN S11DEG01'52"W A DIST 736.79FT TO A 1/2 INCH PIPE MONUMENT MARKED WITH A PLASTIC CAP INSCRIBES ANEZ RLS 13775 & WHICH IS ALSO THE PT OF BEG OF LAND TO BE DESC THN CONTINUING S11DEG01' 52"W DIST OF 48FT TO A 1/2 INCH IRON PIPE MONUMENT MARKED WITH A PLASTIC CAP INSCRIBED RLS 13590 THN S81DEG48 '34"E A DIST OF 50FT TO A 1/2 INCH IRON PIPE MONUMENT MARKED WITH A PLASTIC CAP INSCRIBED RLS 13590 THN N81DEG07'37"EA DIST 51.83FT TO A 1/2 INCH IRON PIPE MONUMENT MARKED WITH A PLASTIC CAP INSCRIBED RLS 13590 THN N89DEG30'25"E TO THE WLY SHORELINE OF EGG LAKE THN NLY ALG SD WLY SHORELINE TO THE INTERSECT WITH A LINE THAT BEARS N89DEG30'25"E FROM THE PT OF BEG THN S89DEG30'25"W TO THE PT OF BEG 20.031.21.24.0043 COUNTY AUDITOR'S PLAT#7 Lot-011 .30A LOT 11 LYING N OF A LINE RUN FROM A PT IN E LINE OF RD 8 FT N OF SW COR TO A PT ON LAKE SHORE 1 FT N OF SE COR EXC 35135-4700 COUNTY AUDITORS:PLAT 7 COUNTY AUD. PLAT 7 20.031.21.24.0044 COUNTY AUDITOR'S PLAT#7 Lot-011 PART OF LOT 11 BEG AT SW COR OF SD LOT 11 THENCE RUN ALONG SOUTH LINE OF SD LOT 11 TO SE COR THEREOF THEN RUN NORTH ALONG EAST LINE THEREOF A DIST OF 3 FT THENCE RUN IN A NWLY DIRECTION TO A PT ON WEST LINE OF SD LOT 10 FT NORTH OF SW COR THEREOF THENCE SOUTH ALONG WEST LINE THEREOF A DIST OF 10 FT TO PLACE OF BEG.COUNTY AUD PLAT 7 20.031.21.24.0046 COUNTY AUDITOR'S PLAT#7 Lot-013.45A N 70 FT OF LOT 13 COUNTY AUD PLAT 7 20.031.21.24.0048 COUNTY AUDITOR'S PLAT#7 LOT-014 COUNTY AUD PLAT 7 20.031.21.24.0049 COUNTY AUDITOR'S PLAT#7 Lot-015 COUNTY AUD PLAT 7 EXC 35135-4950 20.031.21.24.0053, COUNTY AUDITOR'S PLAT 97 Lot-016 PT LOT 16 BEG AT NWLY COR LOT 16 THN SELY ON LINE DRAWN AT RIGHT ANG TO WILY LINE SD LOT 16 FOR 279FT M/L TO WLY SHORE EGG LK THN NLY ALONG WLY SHORELINE EGG LK DIST 56FT M/L TO INTERS WITH N LINE SD LOT 16 THN W ALONG SD N LINE LOT 16 FOR 270FT M/L TO PT OF BEG EASE CO ADD PLAT 7 EXC 35135 4950 20.031.21.24.0060 HUGO LOT-001 BLOCK-009 HUGO ADD 20.031.21.24.0061 HUGO Lot-002 Block-009 ELY 40 FT OF LOT 2 009 HUGO ADD 20.031.21.24.0069 COUNTY AUDITOR'S PLAT #7 Lot-008 THAT PART OF LOT 8 OF COUNTY AUDITOR PLAT NUMBER 7 WASHINGTON COUNTY-MINN ESOTA DESCRIBED AS FOLLOWS:BEGINNING AT THE SOUTHWEST CORNER OF LOT 2 OF THE RECORDED PLAT OF KENNETH N GRAN- GER ADDITION AS MONUMENTED THENCE EASTERLY ALONG THE SOUTHERLY LINE OF SAID KENNETH N GRANGER ADDITION TO AN ANGLE POINT IN THE WESTERLY LINE OF LOT 3 OF SAID KENNETH N GRANGER ADDITION (SAID POINT BEING 30 FEET MORE OR LESS EASTERLY OF THE SOUTH- EAST CORNER OF OAK STREET AS DEDICA- TED IN SAID PLAT) THENCE SOUTHERLY ALONG THE WESTERLY LINE OF SAID LOT 3 A DISTANCE OF 113 FEET THENCE NORTHWESTERLY TO A POINT ON THE SOUTHWESTERLY EXTENSION OF THE WES- TERLY LINE OF SAID KENNETH N GRANGER ADDITION DISTANT 52.40 FEET SOUTH- WESTERLY OF THE SOUTHWEST CORNER OF LOT 2 OF SAID KENNETH N GRANGER ADD- TION THENCE NORTHEASTERLY ALONG SAID SOUTHWESTERLY EXTENSION A SPRINGSTED Page 25 Exhibit 11 DISTANCE OF 52.40 FEET TO THE SOUTHWEST COR- NER OF LOT 2 AND THE POINT OF BEGIN- NING -SUBJECT TO EASEMENT COUNTY AUDITOR'S PLAT NUMBER 7 HUGO CITY 20.031.21.31.0004 COUNTY AUDITOR'S PLAT#7 Lot-028 PART OF LOT 28 BEG AT THE SW COR OF SAID LOT & RUNNING THENCE NORTH ALONG THE WEST LINE OF SAID LOT A DISTANCE OF 50 FT TO A POINT THENCE EAST ON A LINE PARALLEL WITH THE SOUTH LINE OF SAID LOT TO THE SHORE OF EGG LAKE SO CALLED THENCE SLY ALONG THE SHORE OF EGG LAKE TO THE SOUTH LINE OF SAID LOT AND THENCE WEST ALONG THE SOUTH LINE OF SAID LOT TO THE PLACE OF BEG& BEING THE SLY 50 FT OF SAID LOT COUNTY AUD. PLAT 7 20.031.21.31.0008 COUNTY AUDITOR'S PLAT#7 Lot-030 PART OF LOT 30 BEG AT A POINT IN THE WEST LINE OF SAID TRACT 14 FT SWLY FROM THE SW COR OF LOT 27 MEASURING ALONG THE EAST LINE OF PUBLIC HWY NO. 61 THENCE CONTINUING SWLY ALONG THE EAST LINE OF SAID PUBLIC HWY A DISTANCE OF 46 FT TO A POINT THENCE IN A SELY DIRECTION ON A LINE TO A POINT THAT IS 74 FT SOUTH OF THE SE COR OF SAID LOT 27 A D ISTANCE OF 94 FT MEASURED ALONG LAST DESCRIBED LINE FROM SAID PUB- LIC HWY THENCE NORTH TO A POINT 14 FT SOUTH OF THE SOUTH LINE OF SAID LOT 27 THENCE WEST ON A LINE PAR- ALLEL WITH THE SOUTH LINE OF SAID LOT 27 TO THE PLACE OF BEG. COUNTY AUD. PLAT 7 20.031.21.31.0009 COUNTY AUDITOR'S PLAT#7 Lot-030 PT OF LOT 30 BEG AT PT IN ELY LINE OF HUGO & WHITE BEAR RD SD PT BEING 120.7 FT SWLY MEAS ALONG ELY LINE OF SD RD FROM ITS INTERSECTION WITH N LINE OF LOT 5 THENCE SWLY ALONG ELY LINE OF SD RD 20.12 FT THENCESELY 169.16 FT TO A PT 140 FT E & 154 FT S OF INTERSECTION OF N LINE OF LOT 5 WITH ELY LINE OF HUGO & WHITE BEAR RD THENCE N 20 FT THENCE NWLY 165 FT TO BEG. COUNTY AUD PLAT 7 20.031.21.32.0005 COUNTY AUDITOR'S PLAT##7 Lot-022 E 50FT OF E1/2 OF LOT 22 COUNTY AUD. PLAT 7 20.031.21.32.0009 COUNTY AUDITOR'S PLAT#7 Lot-024.50A W 52.14 FT LOT 24 COUNTY AUD PLAT 7 20.031.21.32.0016 COUNTY AUDITOR'S PLAT#7 Lot-024 PT LOT 24 COM AT A PT ON NLY LINE OF SD GOV LOT 5-231 FT W OF CENTER LINE OF N P RY THENCE IN A WLY DIR PAR TO SD RR &PAR TO & DISTANCE ELY 4 FT FROM ELY LINE OF LAND DEEDED TO'F M PEITTE BY DEED HEREINTOFORE DES TO THE INTERSECTION OF A LINE DRAWN PAR TO & DIS 136 FT SLY FROM N SIDE GOV LOT 5 THENCE W ALONG SD PAR LINE 67 FT THENCE NLY TO A PT WHICH IS DIS 33 FT S FROM SD N LINE OF SD GOV LOT 5 & 20 FT W ON A LINE PAR TO SD N LINE OF SD GOV LOT 5 FROM W LINE 0 F THAT CERTAIN TRACT OF LAND CONVEYED BY WARRANTY DEED FROM F KIICHLITO ONE F M PIETTE DATED JYLY 15-1896 & RECORDED IN OFFICE OF REG OF DEEDS ON JULY 20-1896 IN BOOK 45 PAGE 143 THENCE NLY TO SD N LINE OF SD GOV LOT 5 ALONG SD W LINE 0 F PREMISE HEREIN PRODUCED TO SD N LINE OF SD GOV LOT 5 THENCE E ALONG SD GOV LOT 5 TO PLACE OF BEG. COUNTY AUD PLAT 7 20.031.21.32.0017 COUNTY AUDITOR'S PLAT #7 Lot-024 .06A PT LOT 24 BEG AT A PT IN S LINE PUBLIC RD SD PT BEING DES AS FOLLOWS N89DEG.30'E 1240.42 FT S 11DEG.24'W 33.72 FT OF NW COR OF LOT 5 S11DEG.24'W 105.28 FT N89DEG. 30'E 26.61 FT N11DEG.24'E 105.28 FT TO S LINE OF PUBLIC RD S89DEG.30' W ALONG S LINE RD 26.61 FT TO BEG. COUNTY AUD PLAT 7 20.031.21.32.0019 COUNTY AUDITOR'S PLAT#7 LOT-025.11A LOT 25 COUNTY AUD PLAT 7 20.031.21.32.0021 Sect-20 Twp-031 Range-021 COUNTY AUDITOR'S PLAT#7 Lot-034 PT LOT 34 COM AT INTERSEC OF E & W1/4 SECTION LINE OF SEC 20 TWP 31 N RANGE 21 W SPRINGSTED Page 26 Exhibit 11 WITH WLY BOUNDARY LINE OF LAND OWNED BY N P RY CO SD BOUNDARY LINE BEING 200 FT WLY MEASURED AT RT ANG FROM THE CEN LINE OF MAIN TRACK OF SD RAILWAY CO AS SAME EXISTED AUGUST 22-1919 THEN SWLY ALONG SD BOUNDARY LINE PAR WITH CEN LINE OF SD TRACK 473.85 FT WHICH IS THE PT OF BEG OF THIS DES THEN PRODEED ALONG SAME BOUNDARY LINE IN SAME DIRECT 200 FT TO A PT THEN NWLY AT RT ANG 100 FT TO A PT THEN NELY AT RT ANG & PAR WITH SD RAILWAY CO. BOUNDARY LINE 200 FT TO A PT THEN SELY AT RT ANG TO PT OF BEG. COUNTY AUD PLAT 7 20.031.21.32.0022 Sect-20 Twp-031 Range-021 COUNTY AUDITOR'S PLAT#7 Lot-034 1.004A PT LOT 34 CO AUD. PLAT 7 COM AT INTERSEC E/W1/4 LINE SEC 20 WITH WLY BOUND.LINE OF LAND OWNED BY NP RR SD BOUND.BEING 200 FT WLY MEAS. AT RT ANG FROM CEN LINE MAIN TRACK SD RR AS SAME EXISTE 8/22/19.THEN SWLY ALONG BOUND LINE PAR WITH CENT LINE SD TRACK 473.85 FT TO PT BEG. THEN NWLY AT RT ANG TO SD WLY BOUND LINE SD RR PROP ITS 100 FT THEN SWLY AT RT ANG &PAR TO WLY LINE SD RR PROP QRST 200 FT THN W & PAR TO N LINE S LOT 34 CO.PLAT 7 DIST 180 FT THEN N AT RT ANG DIST.219.45 FT M/L TO N LINE LOT 34 THEN A LONG N LINE LOT 34 DIST 150.5 FT M/L TO ANG PT IN SD N LINE LOT 34 THEN SELY ALONG NLY LINE SD LOT 34 174.8 FT M/L TO PT BEG. COUNTY AUD PLAT 7 20.031,21.32.0023 COUNTY AUDITOR'S PLAT#7 Lot-026 THAT PART OF LOT 26 COUNTY AUDITOR'S PLAT NUMBER 7 BEING THAT PORTION OF THE WESTERLY 175 FEET OF BURLINGTON NORTHERN RAILROAD COMPANY'S (FORMER- LY NORTHERN PACIFIC RAILWAY COMPANY) 250 FEET WIDE STATION GROUND PROPER- TY AT HUGO MINNESOTA.BEING 50 FEET WIDE ON THE EASTERLY SIDE AND 200 FEET. -WIDE ON THE 'WESTERLY SIDE OF SAID RAILROAD COMPANY'S HEREINAFTER DESCRIBED MAIN TRACK,CENTERLINE AS NOW LOCATED AND CONSTRUCTED UPON OVER AND ACROSS GOVERNMENT LOT 5 IN SECTION 20 TOWNSHIP 31 NORTH RANGE 21 WEST OF THE 4TH PRINCIPAL MERID- IAN WASHINGTON COUNTY MINNESOTA LY ING BETWEEN TWO LINES DRAWN PARALLEL WITH AND DISTANT RESPECTIVELY 25 FEET AND 200 FEET NORTHWESTERLY MEA- SURED AT RIGHT ANGLES TO SAID HERE- INAFTER DESCRIBED MAIN TRACK CENTER-LINE AND BOUNDED ON THE NORTH BY THE NORTH LINE OF SAID GOVERNMENT LOT 5 AND BOUNDED ON THE SOUTH BY A LINE DRAWN AT RIGHT ANGLES TO SAID HERE- INAFTER DESCRIBED MAIN TRACK CENTER- LINE FROM A POINT DISTANT 700 FEET SOUTHWESTERLY MEASURED ALONG SAID HEREINAFTER DESCRIBED MAIN TRACK CENTERLINE FROM THE SAID NORTH LINE OF GOVERNMENT LOT 5 MAIN TRACK CENTERLINE DESCRIPTION: BEGINNING AT A POINT ON THE SOUTH LINE OF SAID SECTION 20 DISTANT 957. 5 FEET EAST OF THE SOUTHWEST CORNER THEREOF THENCE NORTHEASTERLY ALONG A STRAIGHT LINE TO A POINT ON THE SOUTH LINE OF THE SE1/4 OF SECTION 8 TOWNSHIP 31 NORTH RANGE 21 WEST -4TH PRINCIPAL MERIDIAN DISTANT 463 FEET OF THE SOUTHWEST CORNER OF SAID SE1/4 AND THERE TERMINATING COUNTY AUDITOR'S PLAT NUMBER 7 HUGO CITY 20.031.21.32.0024 COUNTY AUDITOR'S PLAT#7 Lot-026 THAT PART OF LOT 26-COUNTY AUDITOR'S PLAT NUMBER 7 -BEING THAT PORTION OF THE WESTERLY 175 FEET OF BURLINGTON NORTHERN RAILROAD COMPANY'S(FORMERLY NORTHERN PACIFIC RAILWAY COMPANY) 250 FOOT WIDE STATION GROUND PROPER- TY AT HUGO MINNESOTA BEING 50 FEET WIDE ON THE EASTERLY SIDE AND 200 FEET WIDE ON THE WESTERLY SIDE OF SAID RAILROAD COMPANY'S HEREINAFTER DESCRIBED MAIN TRACK CENTERLINE AS NOW LOCATED AND SPRINGSTED Page 27 Exhibit 11 CONSTRUCTED UPON OVER AND ACROSS GOVERNMENT LOT 5 IN SECTION 20 TOWNSHIP 31 NORTH RANGE 21 WEST OF THE 4TH PRINCIPAL MERIDAN WASHINGTON COUNTY MINNESOTA LYING BETWEEN TWO LINES DRAWN PARALLEL WITH AND DISTANT RESPECTIVELY 25 FEET AND 200 FEET NORTHWESTERLY MEASURED AT RIGHT ANGLES TO SAID HERINAFTER DESCRIBED MAIN TRACK CENTERLINE AND BOUNDED ON THE SOUTH BY THE SOUTH LINE OF SAID GOVERNEMEN LOT 5 AND BOUNDED ON THE NORTH BY A LINE DRAWN AT RIGHT ANGLES TO SAID HEREINAFTER DESCRIBED MAIN TRACK CENTERLINE FROM A POINT DISTANT 700 FEET SOUTHWESTERLY OF AS MEASURED A- LONG SAID HEREINAFTER DESCRIBED MAIN TRACK CENTERLINE FROM THE SAID NORTH LINE OF GOVERNMENT LOT 5 MAIN TRACT CENTERLINE DESCRIPTION:BE GINNING AT A POINT ON THE SOUTH LINE OF SAID SECTION 20 DISTANT 957.5FEET EAST OF THE SOUTHWEST CORNER THEREOF THENCE NORTHEASTERLY ALONG A STRAIGH LINE TO A POINT ON THE SOUTH LINE OF THE SEI/4 OF SECTION 8 TOWNSHIP 31 NORTH RANGE 21 WEST-4TH PRINCIPAL MERIDIAN DISTANT 463 FEET EAST OF THE SOUTHWEST CORNER OF SAID 8E1/4 AND THERE TERMINATING COUNTY AUDITOR'S PLAT NUMBER 7 HUGO CITY 20.031.21.33.0005 COUNTY AUDITOR'S PLAT #7 Lot-035 PART OF:LOT 35 COMM AT SW CORN OF SW1/4 SEC20T31 R21 THN E ALONG SO LINE FOR 587.20 FT THN N AT RT ANG FOR 163FT TO PT OF BEG THN CONTIN N 37FT THN E AT RT ANGLES 284.40FT THN S AT RT ANGLE 37FT TO PT THAT IS 5OFT FROM WLY R/W OF NP RR R/W(MEAS AT RT ANGLES TO SD RT OF: WAY LINE)THN W AT RT ANGLES 284.40FT TO PT OF BEG SD PARCEL SITU IN LOT 35 CO AUD PLAT#7 20.031.21.33.0006 COUNTY AUDITOR'SPLAT #7 Lot-035 PT OF LOT 35 203121 BEING THAT PT DESC AS FOLLOWS PT SW1/4-SW1/4 DESC AS FOLLOWS BEG AT PT SD PT BEING ON S LINE OF SEC20 AFOREMENTIONED & 587.20FT E OF SW COR OF SD SEC20 THN N AT RIGHT ANG FOR 11OFT THN WLY & PAR TO AFORE MENTIONED S LINE OF SEC20 DIST 75FT THN S AT RIGHT ANG 11OFT TO S LINE OF SD SEC20 THN ELY ON SD S LINE OF SEC20 TO PT OF BEG SUBJ TO EXISTING STREET R/W COUNTY AUDITORS PLAT#7 20.031.21.33.0011 TRAEGER'S ADD PLAT 2 OUTLOT A SUBJ TO PERPETUAL PONDING&FLOWAGE EASEMENT 20.031.21.34.0076 TRAEGER'S ADD PLAT 2 LOT-007 BLOCK-001 TRAEGERS ADD PLAT 2 29.031.21`.21.0016 Sect-29 Twp-031 Range-021 PT N1/2-NW1/4 S29T31R21 DESC AS FOLL COM AT INTER OF N LN SD SEC WITH ELY LN HWY 61 AS NOW WID TO 111 FT SD PT BEING 1103.76FT E FROM SW COR SD SEC THN E ALG N LN SD SEC 285FT THN S AT RT ANG TO SD N LN 278 .89FT THN W & PARL WITH SD N LN 58.14FT TO POB THN CONT ON SD PARL LN 285.57FT TO INTER WITH ELY LN SD HWY THN S11DEG 53'19"W ALG SD ELY LN 193.61FT TO PT ON SD ELY LN 866AFT NLY AS MEAS ALG SD ELY FROM ITS INTER WITH S LN SD N1/2-NW1/4 THN ELY&PARL WITH SD S LN 325.23FT THN NLY AT RT ANG TO LAST CRS 189.84FT TO POB 29.031.21.21.0099 PINEVIEW MEADOWS 2ND LOT-OOA OUTLOT A 29.031.21.22.0005 Sect-29 Twp-031 Range-021 PT N1/2-NW1/4 29 3121 BEING PT OF S 20 ACR LYING E OF HWY 61 DESC AS FOLL: BEG AT INTER OF ELY RNV LN HWY 61 A LN 248FT S OF N LN SD S 20 ACR THN ELY &PARL TO N LN SD 20 ACR 384.08FT THN S AT RT ANG 140FT THN WLY TO PT ON SD ELY R/W LN BEING 108.81FT SWLY OF POB THN NLY ALG SD R/W 108.81 FT TO POB 29.031.21.22.0006 Sect-29 Twp-031 Range-021 PT NW1/4-NW1/4 293121 COM AT INTER S LN SD TRACT & E R/W HWY 61 THN N11DEG51'E ALG SD R/W 279.lFT TO POB THN CONT N11DEG51'E ALG SD R/W 222.3FT THN E PARL TO S LN SD NWIA 40OFT THN S AT RT ANG TO LAST DESC LN 218FT THN W PARL TO S LN SD NW1/4 SPRINGSTED Page 28 Exhibit 11 445.65FT TO POB EXC THAT PT SD NW1/4 DESC AS FOLL: COM AT INTER OF S LN SD TRACT & E R/W HWY 61 THN NLY ALG SD R/W 399.23FT TO POB THN CONT NLY ALG SD R/W 102.17FT THN E PARL TO S LN SD NW114 136.56FT THN ELY ON STRT LN & ITS EXT TO PT 173.36FT E AS MEAS ALG SD PARL LN FROM E R/W LN HWY 61 &5.45FT S FROM SD PARL LN 21.68FT THN S ON LN DRAWN AT RT ANG TO S LN OF SD NW1/4 96.74FT THN W PARL TO SD S LN 178.93FT TO POB 20.031.21.32.0003 COUNTY AUDITOR'S PLAT #7 Lot-021 PART OF LOT 21 COM AT A PT ON THE NORTH LINE OF SD LOT 21-75 FT WLY OF THE NE COR OF SD LOT 21 THENCE SLY ALONG THE WEST LINE OF CERTAIN PROPERTY NOW OWNED BY CLARENCE VAIL FOR A DISTANCE OF 324 FT TO A PT THENCE WLY ALONG A LIN E PARELLEL WITH THE NORTH LINE OF SD LOT 21 FOR A DISTANCE OF 50 FT TO A POINT THENCE NLY FOR A DISTANCE OF 324 FT MORE OR LESS TO A PT ON TH E NORTH LINE OF SD LOT 21 125 FT WLY FROM THE NE COR OF LOT THENCE ELY ALONG THE NORTH LINE OF SD LOT ADISTANCE OF 50 FT TO THE PLACE OF BEG. COUNTY AUD,PLAT 20.031.21.32.0001 COUNTY AUDITOR'S PLAT #7 Lot-021 PART OF LOT 21 BEING THE E 75FT OF THE N 419FT THEREOF COUNTY AUDITOR'S PLAT#7 20.031.21.32.0006 COUNTY AUDITOR'S PLAT#7 LOT-022 W1/2 LT 22 CO AUD PLAT#7 20.031.21.32.0004 COUNTY AUDITOR'S PLAT#7 Lot-022 1A EAST 112 OF LOT 22 EXCEPT THE EAST 50 FT COUNTY AUD PLAT 20.031.21.32.0007 COUNTY AUDITOR'S PLAT #7 Lot-023 .50A WEST 112 OF LOT 23 COUNTY AUD PLAT T 20.031.21.32.0008 COUNTY AUDITOR'S PLAT#7 Lot-023 .50A EAST 1/2 OF LOT 23 COUNTY AUD PLAT 7 20.031.21.33.0002 COUNTY AUDITOR'S PLAT #7 Lot-035 1A PT LOT 35 ENCOMPASSED BY LINE DESC AS FOLLOWS COM AT SW COR OF SW1/4 OF SEC20 T31N R21W THN E ALONG S LINE OF SD SW114 FOR 587.20FT TO PT OF BEG OF LINE TO BE DESC THN N AT RIGHT ANG 163FT THN E AT RIGHT ANG FOR 284.40FT TO PT THAT IS 50FT FROM WLY R/W OF NORTHERN PACIFIC RR R/W MEAS AT RIGHT ANG TO SID RNV LINE THN SWLY PAR TO SD R/W FOR 166.59FT TO S LINE OF SD SW1/4 THN W ALONG S LINE OF SD SW1/4 FOR 25OFT TO PT OF BEG SUBJ TO PUBLIC RD OVER S 33FT THEREOF CO AUDITORS PLAT#7 20.031.21.32.0010 COUNTY AUDITOR'S PLAT#7 Lot-024 PT LOT 24 BEING THE E 52.14 FT OF THE W 104.28 FT 20.031.21.32.0012 COUNTY AUDITOR'S PLAT #7 Lot-024 .50A PT OF LOT 24 BEG IN THE N LINE 104.28 FT E FROM THE NW COR THENCE E ALONG N LINE 56 1/3 FT THENCE S 387 FT PAR WITH W LINE THENCE W 56-1/3 FT THENCE N 387 FT TO BEG. COUNTY AUD PLAT 7 20.031.21.32.0014 COUNTY AUDITOR'S PLAT#7 Lot-024 PT LOT 24 BEING E 50 FT OF W 210.6 FT 20.031.21.32.0013 COUNTY AUDITOR'S PLAT#7 Lot-024 PT OF LOT 24 BEING W 50 FT OF E 100 FT OF W 310.61 FT. CO AUDITORS PLAT 7 20.031.21.32.0015 COUNTY AUDITOR'S PLAT#7 Lot-024 .50A PT LOT 24 BEING E 50 FT OF W 310.61 FT BEG AT A PT IN THE N LINE OF SD LOT 5 DISTANT 995.85 FT E OF THE NW COR OF SD LOT 5 THENCE S PAR WITH THE W LINE OF SD LOT 5 A DISTANCE OF 419.51 FT THENCE SELY MAKING AN ANGLE TO THE LEFT OF 76DEG.30'FROM SD LAST DESCRIBED LINE A DISTANCE OF 51.42 FT TO A LINE DRAWN PAR WITH & 50 FT E OF THE FIRST MEN COURSE OF THIS DESCRIPTION THENCE N PAR WITH THE W LINE OF SD LOT 431.23 FT TO A PT IN THE N LINE THEREOF 50 FT E OF THE PT OF BEG THENCE W 50 FT TO THE PT OF BEG COUNTY AUD. PLAT 7 20.031.21.32.0018 COUNTY AUDITOR'S PLAT#7 Lot-024 .50A PT LOT 24 BEG AT A PT IN N LINE OF SPRINGSTED Page 29 Exhibit /l GOV LOT 5 DISTANT 1045.85 FT E OF NW COR OF SD LOT 5 THENCE S PAR WITH W LINE OF SD LOT 5 A DISTANCE OF 431.23 FT THENCE SELY MAKING AN ANGLE TO THE LEFT 75DEG.30 FROM SD LAST DESCRIBED LINE A DIS OF 51.42 FT TO A LINE DRAWN PAR WITH &50 FT E OF FIRST MENTIONED COURSE OF THIS DES THENCE N PAR WITH W LINE OF SD LO T 443.67 FT TO A PT IN N LINE THEREOF 50 FT E OF PT OF BEG THENCE W 50 FT TO PT OF BEG. COUNTY AUD. PLAT 7 20.031.21.32.0011 COUNTY AUDITOR'S PLAT #7 Lot-024 1.30A LOT 24 EX THE W 360.61 FT EX TO HECTOR PEPIN COUNTY AUD PLAT 7 20.031.21.24.0042 COUNTY AUDITOR'S PLAT #7 Lot-010 .37A S 50 FT OF LOT 10 EXC 35135-4550 CO. AUDITORS PLAT NO 7 20.031.21.24.0021 COUNTY AUDITOR'S PLAT #7 Lot-003 PT N 157FTOF LOTS 3 & 4 LYING S OF N 80FT EXC THAT PT DESC ON QUIT CLAIM DEED`REC IN 134 DEEDS 466 SD EXC DESC AS FOLL COMM AT NW COR OF LOT 3 CO AUDITORS PLAT #7 THN RUN SLY DIR ALONG WLY LINE OF SD LOT 3 DIST OF 157FT TO PT THN RUN ELY DIR &PAR WITH NLY LINE OF LOTS 3&4 DIST OF 120FT TO PT OF BEG OF LAND TO BE DESC THN RUN NLY DIR &PAR WITH WLY LINE OF SD LOT 3 DIST OF 30FT TO PT THN RUN IN ELY DIR& PAR WITH NLY LINE OF SD LOTS 3& 4 TO PT ON ELY LINE OF SD LOT 4 THN RUN SLY DIR ALONG ELY LINE OF SD LOT 4 TO PT WHICH IS THE SE COR OF SD LOT 4& NE COR OF LOT 1 BLK 10 OF HUGO THN RUN IN WLY DIR & PAR WITH NLY LINE OF SD LOTS 3 & 4 TO PT OF BEG OF LAND HEREIN DESC CO AUD PLAT#1 20.031.21.24.0040 COUNTY AUDITOR'S PLAT NO.7 Lot-009 PT OF LTS 9& 10 CO AUDITOR'S PLAT 7 DESC AS FOLL COM AT NE COR OF GOV LOT 4 THN S89DEG05' 26"W BRG BASED ON WASH CO.PROJ COORDINATE SYSTE NORTH ZONE, ALG N LN SD GOV LT 4 DIST 770. 34FT THN S11DEG01'52"W DIST 63 6.61FT TO A 1/21NCH IRON PIPE MON MARKED RLS6617 THN S11DEG01'52"W DIST 100.18FT TO A 1/21 NCH IRON PIPE MON MARKED ANEZ RLS13775 THN N89DEG30'25"E DIS T 221.34FT TO A 1/21NCH IRON PIPE MON MARKED ANEZ RLS13775 & POB THN 889DEG30'25"W'DIST 2 21.341FT TO SD MON THN N11DEG01 '52"E DIST 100.18FT TO SD MON THN N89DEG30'25"E DIST 119.69F T TO A 1/21NCH IRON PIPE MON M ARKED ANEZ RLS13775 THN CONT N 89DEG30'25"E TO SHRLN EGG LK T HN SWLY AEG SHRLN SD LK TO INT ER LN BRG N89DEG30'25"E FROM P OB THN S89DEG30'25"W TO POB 20.031.21.24.0035 COUNTY AUDITOR'S PLAT #7 Lot-008 .17A PT OF LOT 8 BEG AT SW COR THENCE E 150 FT THENCE NLY PAR WITH RD 50 FT THENCE W 150 FT THENCE SLY 50 FT TO BEG. COUNTY AUD. PLAT 7 20.031.21.24.0439 COUNTY AUDITOR'S PLAT#7 Lot-008 THAT PART OF LOTS 8 AND 9 OF COUNTY AUDITORS PLAT NUMBER 7 WASHINGTON COUNTY MINNESOTA DESCRIBED AS FOLLOW COMMENCING AT THE NORTHEAST CORNER OF GOVERNMENT LOT 4- SECTION 20 TOWN- SHIP 31 NORTH RANGE 21 WEST-CITY OF HUGO- WASHINGTON COUNTY MINNESOTA THENCE SOUTH 89 DEGREES 05 MINUTES 26 SECONDS WEST-BASED ON THE WASH INGTON COUNTY COORDINATE SYSTEM NOR-TH ZONE ALONG THE NORTH LINE OF SAID GOVERNMENT LOT 4 A DISTANCE OF 770. 34 FEET THENCE SOUTH 11 DEGREES 01 MINUTE 52 SECONDS WEST A DISTANCE OF 636.61 FEET TO A 1/2 INCH IRON PIPE MONUMENT MARKED WITH A PLASTIC CAP INSCRIBED RLS 6617 THENCE NORTH 89 DEGREES 30 MINUTES 25 SECONDS EAST A DISTANCE OF 150 FEET TO A 1/2 INCH IRON PIPE MONUMENT MARKED WITH A PLASTIC CAP INSCRIBED RLS 6617 AND THE POINT OF BEGINNING THENCE NORTH 10 DEGREES 51 MINUTES 11 SECONDS EAST 50 FEET THENCE SOUTH 89 DEGREES 30 MINUTES 25 SECONDS WEST 30 FEET MORE OR LESS TO THE SPRINGSTED Page 30 Exhibit 11 EASTERLY LINE OR THE SOUTHERLY EXTENSTION OF THE EASTERLY LINE OF THE VAN BUSKIRK PARCEL AS DESCRIBED ON A WARRANTY DEED RECORDED AS DOCUMENT NUMBER 622656 THENCE NORTHEASTERLY ALONG SAID EASTERLY LINE AND/OR ITS EX- TENSION TO THE NORTHEAST CORNER OF SAID VAN BUSKIRK PARCEL THENCE NORTH WESTERLY ALONG THE NORTHERLY LINE OF SAID VAN BUSKIRK PARCEL TO THE NORTH WESTERLY CORNER OF SAID PARCEL THENC NORTHEASTERLY ALONG THE WESTERLY LIN OF LOT 8 OF SAID COUNTY AUDITORS PLAT NUMBER 7 TO A POINT DISTANT 271 .54 FEET SOUTHWESTERLY OF THE NORTH- WEST CORNER OF LOT 7 OF SAID COUNTY AUDITORS PLAT NUMBER 7 THENCE SOUTH- EASTERLY TO A POINT ON THE SOUTHERLY EXTENSION OF THE WESTERLY LINE OF THE RECORDED PLAT OF KENNETHN GRAN- GER ADDITION AS MONUMENTED DISTANT 303.92 FEET SOUTHWESTERLY OF THE NORTHWEST CORNER OF SAID PLAT THENCE NORTHEASTERLY ALONG SAID SOUTHWEST- ERLY EXTENSION TO A POINT DISTANT 52 .40 FEET SOUTHWESTERLY OF SOUTHWEST CORNER OF LOT 2 OF SAID KENNETH'N GRANGER ADDITION THENCE SOUTHEASTER-LY TO A POINT ON THE WESTERLY LINE OF LOT 3 OF SAID KENNETH N GRANGER ADDITION DISTANT 113 FEET SOUTHERLY OF AN ANGLE POINT IN THE WESTERLY LINE OF SAID LOT 3 (SAID ANGLE POINT BEING 30 FEET MORE OR LESS`EASTERLY OF THE SOUTHEAST CORNER OF OAK STRE- ET AS DEDICATED IN SAID PLAT) THENCE SOUTHERLY ALONG THE WESTERLY LINE OF SAID LOT 3 TO THE SHORELINE OF EGG LAKE THENCE SOUTHWESTERLY ALONG G SAID SHORELINE TO THE POINT OF INTERSECT- ION WITH A LINE WHICH BEARS NORTH 89 DEGREES 30 MINUTES 25 SECONDS EAST FROM THE POINT OF BEGINNING THENCE SOUTH 89 DEGREES 30 MINUTES 25 SEC-ONDS WEST ALONG SAID LINE TO THE POINT OF BEGINNING -SUBJECT TO A 64 FOOT WIDE PERMANENT EASEMENT FOR EX-CLUSIVE USE AND POSSESSION FROM THE NORTHERLY LINE OF THE ABOVE DESCRIBE PARCEL TO THE SHORELINE OF EGG LAKE -THE EAST LINE OF SAID EASEMENT IS THE WEST LINE OF SAID LOT 3 COUNTY AUDITOR'S PLAT NUMBER 3 CITY OF HUGO 20.031.21.24.0034 COUNTY AUDITOR'S PLAT#7 Lot-008 PART OF LOT 8 CO AUDITOR PLAT#7 BEG AT PT ON WLY LINE OF SD CO AUDITOR'S PLAT#7 (ALSO ELY LINE OF FOREST BLVD N) DIST 210.54FT SWLY OF NW COR OF LOT 7 OF SD CO AUDITOR'S PLAT #7 THN SWLY ALONG SD ELY LINE DIST OF 61 FT THN SELY DIST OF 146.75FT TO PT ON SWLY EXT OF WLY LINE OF REC PLAT OF KENNETH N GRANGER ADD WASH CO MN DIST 303.92FT SWLY OF NW COR OF SD PLAT THN NELY ALONG SD WLY LINE & ITS SWLY EXT DIST OF 63.46FT TO PT DIST 240.46FT SWLY OF NW COR OF SD PLAT THN NWLY DIST OF 146.23FT TO PT OF BEG 20.031.21.24.0033 COUNTY AUDITOR'S PLAT#7 Lot-008 PART OF LOT 8 COUNTY AUDITOR'S PLAT #7 BEG AT PT ON WLY LINE OF SD CO AUDITOR'S PLAT#7 (ALSO ELY LINE OF FOREST BLVD N) DIST 140.54FT SWLY OF NW COR OF LOT 7 OF SD CO AUDITOR'S PLAT #7 THN SWLY ALONG SD ELY LINE DIST OF 70FT THN SELY DIST OF 146.23FT TO PT ON SWLY EXT OF WLY LINE OF REC PLAT OF KENNETH N GRANGER ADD WASH CO MN DIST 240.46FT SWLY OF NW COR OF SD PLAT THN NELY ALONG SD WLY LINE &ITS SWLY EXT DIST OF 71.5FT TO PT DIST 168.96FT SWLY OF NW COR OF SD PLAT THN NWLY DIST OF 145.58FT TO PT OF BEG 20.031.21.24.0006 COUNTY AUDITOR'S PLAT#7 Lot-002 PT LT 2 CTY AUD PLAT#7 COM AT NW COR SD LT 2 THN ON ASSM BRG SODEG28'14"W ALG W LN SD LT 2 470FT TO PT HEREINAFTER REF AS "PT A" THN NODEG28'14"E ALG W LN SD LT 2 60FT THN N89DEG54'43"E AND PARL TO N LN SD LT 2 15OFT TO PT HEREINAFTER REF AS SPRINGSTED Page 31 Exhibit 11 "PT B" THN CONT N89DEG54-43"E 147.6FT M/L TO WLY R/W LN N P RR THN S11DEG47'28"W ALG SD WLY R/W LN 61AFT TO POB TRACT TO BE DESC THN S89DEG54'43"W AND PARL TO N LN SD LT 2 TO AN INTER W/ LN WHICH BRS SODEG 28'14"W FROM "PT B" THN NODEG 28'14"E .08FT TO INTER W/ LN WHICH IS PARL TO N LN SD LT 2 AND WHICH BRS N 89DEG54'43"E FROM "PT A" THN S89DEG54'43"W 15OFT TO "PT A" THN SODEG28' 14"W ALG W LN SD LT 2 149.72 FT TO SW COR SD LT 2 THN N89 DEG50'16"E ALG S LN SD LT 2 250.41FT TO SE COR SD LT 2 THN N11DEG47'28"E ALG WLY R/W LN SD N P RR 152.66FT TO POB 20.031.21.24.0013 COUNTY AUDITOR'S PLAT #7 Lot-002 PART OF LOT 2 BEG AT A POINT ON THE WEST LINE OF SD LOT 2 SAID PT BEING 410 FT SOUTH OF NW COR THENCE N89DEG.33EAST & PARALLEL TO THE NORTH LINE OF SD LOT 2 FOR 150 FT THENCE SOUTH FOR 60 FT THENCE SO. 89DEG.33WEST FOR 150 FT TO THE WEST LINE FOR 60 FT TO POINT OF BEG.COUNTY AUD. PLAT 20.031.21.24.0016 COUNTY AUDITOR'S PLAT#7 Lot-002 PT LOT 2 COM AT NW COR LOT 2 THEN S ALONG W LINE LOT 2 FOR 390 FT TO PT BEG THIS DESC. THEN N89DEG.33' E 150 FT THEN S 20 FT THEN S89DEG.33 W 150 FT TO SD WLY LINE LOT 2 THEN N ALONG SD WLY LINE 20 FT TO PTOF BEG ALSO COM AT NW CORN LOT 2 THEN S A- LONG W LINE LOT 2 FOR 390 FT THEN N 89DEG.33'E'15D FT TO PT OF BEG.THIS DES THEN CONTINU N89DEG.33E 147.6 FT M/L TO WLY R/W LINE N P RR CO THEN SLY ALONG WLY R/W LINE SD N.P. RR CO FOR 81.8 FT THEN S89DEG.33W 131.6 FT M/L THEN N 80 FT TO PT BEG. COUNTY AUD PLAT 7 20.031.21.24.0014 COUNTY AUDITORS PLAT#7 Lot-002 PT LOT 2 BEG AT PT ON W LINE OF SD LOT 2 SD PT BEING 315 FTS OF NW COR THEREOF THEN CONTINU S ALONG W LINE DIST OF 75 FT TO PT THEN N 89DEG.33E & PAR TO N LINE OF SD LOT 2 DIST OF 293.5 FT MIL TO WLY EDGE OF N P RR R/W THEN NLY ALONG SD R/W TO PT 309.6 FT M/L E TO PT OF BEG HEREIN ON LINE PAR WITH N LINE F SD LOT 2 THEN S89DEG.33'W &PAR TO N LINE OF SD LOT 2 DIST OF 309.6 FT M/L TO PT OF BEG.COUNTY AUI?PLAT 7 20.031.21.24.0032 COUNTY AUDITOR'S PLAT#7 Lot-007 PART OF LOT 7 & 8 COUNTY AUDITOR'S PLAT#7 BEG AT PT ON WLY LINE OF SD CO AUDITOR'S PLAT#7 (ALSO ELY LINE OF FOREST BLVD'N)DIST 70.63FT SWLY OF NW COR OF SD LOT 7 THN SWLY ALONG SID ELY LINE DIST OF 69.91FT THN SELY DIST OF 145.58FT TO PT ON WLY LINE OF REC PLAT OF KENNETH N GRANGER ADD WASH CO MN DIST 1`68.96FT SWLY OF NW COR OF SD PLAT THN NELY ALONG SD WLY LINE OF SD PLAT DIST OF 75.96FT TO PT DIST 93FT SWLY OF NW COR OF SD PLAT THN NWLY DIST OF 144.93FT TO PT OF BEG 20.031.21.24.0054 KENNETH N GRANGER ADD LOT-001 S 13FT LOT 1 ALL LOT 2 20.031.21.24.0031 COUNTY AUDITOR'S PLAT#7 Lot-007 PART OF LOT 7 COUNTY AUDITOR'S PLAT 7 BEG AT NW COR OF LOT 7 THN SWLY ALONG WLY LINE OF SD LOT 7 (ALSO THE ELY LINE OF FOREST BLVD N) DIST 70.63FT THN SELY DIST OF 144.93FT TO PT ON WILY LINE OF REC PLAT OF KENNETH N GRANGER ADD WASH CO MN DIST 93FT SWLY OF NW COR OF SD PLAT THN NELY ALONG SD WLY LINE OF SD PLAT DIST OF 93FT TO NW COR OF SD PLAT THN ELY ALONG N LINE OF LOT 7 CO AUDITOR'S PLAT#7 TO PT OF BEG 20.031.21.24.0024 COUNTY AUDITOR'S PLAT#7 Lot-005 EXC N 150 FT COUNTY AUD. PLAT NO.7 20.031.21.24.0055 KENNETH N GRANGER ADD LOT-001 EXC S 13FT THEREOF 20.031.21.24.0010 COUNTY AUDITOR'S PLAT#7 Lot-002 PART OF LOT 2 BEG AT PT ON W LINE OF SD LOT 2 DIST OF 13OFT S OF NW COR OF SD LOT 2 THN N89DEG33E & PAR WITH N LINE OF SD LOT 2 DIST OF 15OFT THN S &PAR WITH W LINE OF SD LOT 2 DIST OF 11OFT THN S89DEG33W & PAR WITH N LINE OF SD LOT 2 DIST OF 15OFT TO W LINE OF SD LOT 2 THN N ALONG W LINE OF SD LOT 2 DIST OF 1 10F TO PT OF BEG COUNTY AUDITOR'S PLAT#7 SPRINGSTED Page 32 Exhibit 11 20.031.21.24.0068 COUNTY AUDITOR'S PLAT#7 Lot-007 THAT CERTAIN PART OF LOT 7 IN COUNTY AUDITOR'S PLAT NUMBER 7 IN THE VILL-AGE OF HUGO AND BEING A PART OF GOV- ERNMENT LOT 4 IN SECTION 20 TOWNSHIP 31 RANGE 21 DESCRIBED AS FOLLOWS:BE- GINNING AT THE NORTHEAST CORNER OF SAID LOT 7 THENCE WEST ALONG THE NORTH LINE THEREOF FOR 129.21 FEET TO THE POINT OF BEGINNING OF THE TRACT HEREBY DESCRIBED THENCE CON- TINUING WEST ON SAME COURSE FOR 79. 21 FEET THENCE SOUTH PARALLEL TO THE EAST LINE OF LOT 7 FOR 209 FEET THEN EAST PARALLEL TO DESCRIBED FIRST COURSE FOR 79.21 FEET THENCE NORTH PARALLEL TO DESCRIBED SECOND COURSE FOR 209 FEET TO THE POINT OF BEGINN- ING-ACCORDING TO THE RECORDED PLAT THEREOF SUBJECT TO ONEKA ROAD ALONG THE FRONT 33 FEET THEREOF COUNTY AUDITOR'S PLAT NUMBER 7 HUGO CITY 20.031.21.24.0007 COUNTY AUDITOR'S PLAT#7 Lot-002 .17A PART OF LOT 2 BEG AT A PT ON THE WEST LINE OF SD LOT 2 - 80 FT SOUTH OF THE NW CORNER THEREOF THENCE NORTH 89DEG.33'E 150 FT THENCE SOUTH 50 FT THENCE SOUTH 89DEG.33'WEST 150 FT TO THE W LINE OF LOT 2 THENCE NORTH ALONG SD WEST LINE 50 FT TO PT OF BEG. EXC E 10 FT. COUNTY AUD.PLAT 7 20.031.21.21.0015 Sect-20 Twp-031 Range-021 PT OF NE1/4 OF NW1/4 203121 BEG A INTER- SECTION OF ELY R/W LINE OF STATE TRUMK HWY 61 & NLY LINE OF ROAD RUNNING EAST &WEST ALONG SOUTH LINE OF SD TRACT&RUN THENCE NLY 208 FT THENCE ELY ON A LINE PAR- ALLEL TO SOUTH LINE OF SD TRACT 208 FT THENCE SLY ON A LINE PAR-ALLEL TO & 208 FT EAST OF SD ELY LINE OF SD HWY 61-208 FT THENCE WLY 208 FT TO PT OF BEG CONTAIN- ING ONE ACRE MORE OR LESS EXCN 20 FT & EXC TO HWY &ALSO EXC THE S 50FT OF THE N 70FT THEREOF HUGO 20.031.21.21.0016 Sect-20 Twp-031 Range-021 THAT PT NE1l4-NW1/4 S20T31 R21 DESC AS:COM@NE COR SDI/4 THN ON AZ FROM N179DEG4338" ORIEN TO WASH CO COORD 1322.12FT TO SE COR SDI/4-1/4 THN ON AZ 269 DEG05'26" ALG S LN SD1/4-1/4 770.38FT TO ELY LN US HWY#61 THN ON AZ 11DEG02'10" ALG SD ELY LN DIST 33.73 TO N LN 147 TH ST N THN CONTIN ON AZ 11 DEG 02'10"ALG SD ELY LN US HWY 61 208FT TO POB LAND TO BE DESC: THN ON AZ 191DEG02'10" ALG SD ELY LN 71.55FT TO MOST SLY LN LAND DESC IN DEED REC IN BK310 DEEDS-PG 525-THN ON AZ 89DEG05 '26" ALG SD S LN DIS 208FT THN ON AZ 11DEG02'10" DIS 71.55FT THN ON AZ 359DEG43'38" DIS 40. 74FT THN ON AZ 281DEG02'10" DIS 195.51 FT TO SD ELY LN US HWY#61 THN ON AZ 191 DEG02'10" ALG SD ELY LN 83FT TO POB-SUBJ TO EASE AND:THAT PT NEI/4-NW1/ 4 S20 DESC:COM@NE CORNSDI/4- 1/4 THN ON AZ FROM N179DEG43 38" ORIENT TO WASH CO COORDN SYS N ZONE DIS 1322.12FT TO SE CORN SD1/4-1/4 THN ON AZ 269DE G05'26" ALG S LN SD1/4-1/4 DIS 391.2FT THN ON AZ 359DEG43'38" PAR WITH W LN SD114-1/4 DIS 33 FT TO N LN 147TH ST THN CONTI N ON AZ 359DEG43'38"ALG SID,PAR LN DIS 133.50FT TO ELY EXTENS OF MOST SLY LN OF LAND DESC IN WID REC IN BK 310 DEEDS PG 525 FOR POB OF LAND TO BE DESC THN CONTIN ON AZ 359DEG43'38"ALG SD PAR LN DIS 70FT TO LN ON AZ 89DEG05'26" FROM HEREINAFTER DESC "PT A" THN ON AZ 269DEG05 '26" DIS 123.80FT TO INTERS WITH LN WHICH IS PAR WITH ELY LN US HWY#61 &DIS 208FT ELY OF SD ELY LN AS MEAS ALG SD N LN 147TH ST N THN ON AZ 191DEG02' 10" ALG SD PAR LN DIST 71.55FT TO MOST SLY LN LAND DESC IN BK 310-DEEDS-PG 525 THN ON AZ 89 DEG05'26" ALG ELY EXTENS SD LN DIS 137.83FT TO POB-SD"PT A"IS DESC:COM@NE CORN NE1/4-NW1/4 THN ON AZ FROM N 179DEG43'38" DIS 1322.12FT TO SE CORN SD1/4-1/4 THN ON AZ 269DEG05'26"ALG S LN SD1/4-1/4 DIS 770.38 FT TO ELY LN US HWY#61 THN ON AZ 11DEG02'10" ALG SD ELY LN DIS 33.73FT TO N LN SD 147TH ST N THN CONTIN ON AZ 11DEG02' 10" ALG SD SPRINGSTED Page 33 Exhibit 11 ELY LN US HWY#61 DIS 208FT TO"PTA" TOG WITH EASE 20.031.21.21.0013 Sect-20 Twp-031 Range-021 PT NE1/4-NW1/4 S20T31R21 DESC AS FOLL:COM AT NE CORN OF SD1/4 THN ON AZIMUTH FROM N OF 179DEG43'38" ORIENTED TO WASH CO COORDINATE SYSTEM N ZONE A DIST 1322.12FT TO SE CORN OF SD NE1/4-NW1/4 THN ON AN AZIMUTH OF 269DEG05'26" ALG THE S LINE OF SD NE1/4-NW1/4 DIST 770.38FT TO THE ELY LINE OF US HWY #61 THN ON AN AZIMUTH 11DEG02'10"ALG SD ELY LINEA DIST 33.73FT TO N LINE OF 147TH ST N THN CONTIN ON AN AZIMUTH OF 11DEG02'10" ALG SD ELY LINE A DIST OF 291FT TO PT OF BEG OF LAND TO BE DESC THN CONTIN ON AN AZIMUTH OF 11DEG02'10" ALG SD ELY LINE DIST OF 112.72FT TO,S LINE OF 148TH ST N AS DESC IN A QUIT CLAIM DEED RECORDED 6-26-74 A5 DOC#324300 THN ON AN AZIMUTH OF 89DEG05'26" ALG SD S LINE A DIST 132.88FT THN ON AZIMUTH 191DE 02'10" A DIST 140.22FT TO A PT ON AN AZIMUTH 101DEG02'10" &A DIST OF 130 FT FROM PT OF BEG THN ON AZIMUTH OF 281DEG02'10" A DIST 13OFT TO PT OF BEG HUGO SUBJ.TO EASE The area encompassed by the TIF District shall also include all street or utility right-of-ways located upon or adjacent to the property described above. SPRINGSTED Page 34 Exhibit III Assumptions Report City of Hugo, Minnesota Tax Increment Financing (Redevelopment) District No. 1-2 Downtown Redevelopment Project Scenario A: Total EMV Type of Tax Increment Financing District Redevelopment Maximum Duration of TIF District 25 years from 1st increment Projected Certification Request Date 07/15/07 Decertification Date 12/31/35 (26 Years of Increment) 2007/2008 Base Estimated Market Value $28.350.400 Estimated blended class rate 1.5526% Original Net Tax Capacity* $440,174 Assessment/Collection Year 2007/2008 2008/2009 2009/2010 2010/2011 Base Estimated Market Value $28,350,400 $28,350,400 $28,350,400 $28,350,400 Increase in Estimated Market Value 0 11,750.227 21,323;549 31,136,204 Total Estimated Market Value 281350,400 40.100;627 49,673;949 59,486,604 Total Net Tax Capacity $440,174 $598,310 5711,755 S828,035 City of Hugo 35,931% Washington County 25.651% ISD#624 17.731% Other 3.672% Local Tax Capacity Rate 82.985% Proposed 2006/2007 Fiscal Disparities Contribution From TIF District Administrative Retainage Percent(maximum= 10%) 10.00% Pooling Percent 0.00% Bonds Note (Pay-As-You-Go) Bonds Dated Note Dated 07115107 Bond Issue @ 0.00%(NIC) Note Rate 6.00% Eligible Project Costs Note Amount $12,500,000 Present Value Date& Rate 07/15/07 6.00% Notes *Original net tax capacity estimated assuming current classification of property as blend of residential and commercial. Future base tax capacity may be adjusted as future developments occur. Assumptions include no future changes to the property tax system, class rates and tax rate. Includes preliminary 2007 tax rates provided by County and 2.5%annual market value inflator. Proposed construction schedule commencing in 2008 for all types of development(residential and commercial) and is staggered over an 8-10 year period SPRINGSTED Exhibit IV Projected Tax Increment Report CityofHugo, Minnesota Tax Increment Financing (Redevelopment)District No. 1-2 Downtown Redevelopment Project , Scenario A:Total EMV Less: Less: Retained Times: Less: Less: Annual Total Original Fiscal Captured Tax Annual State Aud. Admin. Annual Period Net Tax Net Tax Disp.@ Net Tax Capacity Gross Tax Deduction Retainage Net Ending Capacity Capacity 0.0000% Capacity Rate Increment 0.360% 10.00% Revenue 1 2 3 4 5 6 7 8 9 10 12/31/07 440,174 440,174 0 0 82.985% 0 0 0 0 12/31/08 440,174 440,174 0 0 82.985% 0 0 0 0 12/31/09 440,174 440,174 0 0 82.985% 0 0 0 0 12/31/10 598,310 440,174 0 158,136 82.985% 131,229 472 13,076 117,681 12/31/11 711,755 440,174 0 271,581 82,985% 225,371 811 22,456 202,104 12/31/12 828,035 440,174 0 387,861 82,985% 321,867 1,159 32,071 288,637 12/31/13 947,223 440,174 0 607,049 82.985% 420,775 1,515 41,926 377,334 12/31/14 1,306,855 440,174 0 866 681 82.985% 719,215 2,589 71,663 644,963 12/31/15 1,675,477 440,174 0 1,235,303 82.985% 1,025,116 3,690 102,143 919,283 12/31/16 2,053,315 440,174 0 1,613,141 ,82.985% 1,338,665 4,819 133,385 1,200,461 12/31/17 2,440,599 440,174 0 2,000,425 82.985% 1,660,053 5,976 165,408 1,488,669 12/31/18 2,490,628 440,174 0 2,050,454 82.985% 1,701,570 6,126 169,544 1,525,900 12/31/19 2,541,909 440,174 0 2,101,735 82.985% 1,744,124 6,279 173,785 1,564,060 12/31/20 2,594,471 440,174 0 2,154,297` 82.985% 1,787,743 6,436 178,131 1,603,176 12/31/21 2,648,347 440,174 0 2,208,173 82.985% 1,832,452 6,597 182,586 1,643,269 12/31/22 2,703,570 440,174 0 2,263,396'' 82.985% 1,878,279 6,762 187,152 1,684,365 12/31/23 2,760,174 440,174 0 2,320,000 82.985% 1,925,252 6,931 191,832 1,726,489 12/31/24 2,818,192 440,174 0 2,378,018 82.985% 1,973,398 7,104 196,629 1,769,665 12/31/25 2,877,662 440,174 0 2,437,488 82.985% 2,022,749 7,282 201,547 1,813,920 12/31/26 2,938,617 440,174 0 2,498,443 82.985% 2,073,333 7,464 206,587 1,859,282 12/31/27 3,001,097 440,174 0 2,560,923 82.985% 2,125,182 7,651 211,753 1,905,778 12/31/28 3,065,139 440,174 0 2,624,965 82.985% 2,178,327 7,842 217,049 1,953,436 12/31/29 3,130,782 440,174 9 2,690,608 82.985% 2,232,801 8,038 222,476 2,002,287 12/31/30 3,198,066 ' 440,174 0 2,757,892 82.985% 2,288,637 8,239 228,040 2,052,358 12/31/31 3,267,032 440,174 0 2,826,858 82.985% 2,345,868 8,445 233,742 2,103,681 12/31/32 3,337,722 440,174 0 2,897,548 82.985% 2,404,530 8,656 239,587 2,156,287 12/31/33 3,410,180 440,174 0 2,970,006 82.985% 2,464,659 8,873 245,579 2,210,207 12/31/34 3,484,449 440,174 0 3,044,275 82.985% 2,526,291 9,095 251,720 2,265,476 12/31/35 3,560,574 440,174 0 3,120,400 82.985% 2,589,464 , 9 322 258,014 2,322,128 $43,936950 $158,173 $4,377,881 $39,400,896 SPRINGSTED Page 36 Exhibit V Estimated Impact on Other Taxing Jurisdictions Report City of Hugo, Minnesota Tax Increment Financing (Redevelopment) District No.1.2 Downtown Redevelopment Project" Scenario A: Total EMV Without Project or TIF District With Project and TIF District Projected Hypothetical 2005/2006 2005/2006 Retained New Hypothetical Hypothetical Tax Generated Taxable 2005/2006 Taxable Captured Taxable Adjusted Decrease In by Retained Taxing Net Tax Local Net Tax Net Tax NetTax Local Local Captured Jurisdiction Capacity(1) Tax Rate Capacity(1) + Capacity _ Capacity Tax Rate(*) Tax Rate(*) N.T.C. (*) City of Hugo 35.931% 0 $3,120,400 3,120,400 0.000% 35.931% 0 Washington County 25.651% 0 3,120,400- 3,120,400 0.000% 25.651% 0 ISD#624 17.731% 0 3,120,400 3,120,400 0.000% 17.731% 0 Other(2) --- 3.672% --- 3,120,400 --- 3.672% --- --- Totals 82.985% 3.672% 79.313% * Statement 1: If the projected Retained Captured Net Tax Capacity of the TIF District was hypothetically available to each of the taxing jurisdictionsabove,the result would be a lower local tax rate(see Hypothetical Adjusted Tax Rate above) which would produce the same amount of taxes for each taxing jurisdiction. In such a case,the total local tax rate would decrease by 79.313%(see Hypothetical Decrease in Local Tax Rate above). The hypothetical tax that the Retained Captured Net Tax Capacity of the'TIF'District would generate is also shown above. Statement 2: Since the projected Retained Captured Net Tax Capacity of the TIF District is not available to the taxing jurisdictions, then there is no impact on taxes levied or local tax rates. (1} Taxable net tax capacity=total net tax capacity-captured TIF.-fiscal disparity contribution, if applicable. (2) The impact on these taxing jurisdictions is negligible since they represent only 4.42%of the total tax rate. SPRINGSTED Page 37 Exhibit VI Market Value Analysis Report City of Hugo, Minnesota Tax Increment Financing (Redevelopment) District No. 1-2 Downtown Redevelopment Project Scenario A: Total EMV Assumptions Present Value Date 07/15/07 P.V. Rate - Gross T.I. 6.00% Increase in EMV With TIF District $260,390,671 Less: P.V of Gross Tax Increment 15,785,471 Subtotal $244,605,200 Less: Increase in EMV Without TIF 0 Difference $244,605,200 Annual Present Gross Tax Value @ Year Increment 6.00% 1 2€310 131,229 108,835 2 2011 225,371 176,332 3 2012 321,867 237,577 4 2013 420,775 293,003 5 2014 ' `' 719,215 472,471 6 2015 1,025,116 635,307 7 2016 1;338,665 782,667 8 2017 1;660,053 915,632 9 2018 1,701,570 885,407 10 2019 1,744,124 856,179 11 2020 1,787,743 827,916 12 2021 1;832,452 800,586 13 2022 1,878,279 774,158 14 2023 1;925,252 748,603 15 2024 1,973,398 723,890 16 2025 2.022,749 699,994 17 2026 2,073,333 676,886 18 2027 2.125,182 654,540 19 2028 2,178,327 632,933 20 2029 2;232,801 612,038 21 2030 2,288,637 591,834 22 2031 2,345,868 572,296 23 2032 2,404,530 553,403 24 2033 2.464,659 535,133 25 2034 2,526,291 517,467 26 2035 2,589,464 500,384 $43,936,950 $15,785,471 SPRINGSTED Y Exhibit VI REDEVELOPMENT QUALIFICATIONS FOR THE DISTRICT Following is a summary of the facts that support the finding that the District is a redevelopment district as defined in Minnesota Statutes, Section 469.174, subd. 10(a)(1). The findings are based on reports, as prepared by City building officials and dated . The Reports and all background materials related to the Reports are on file in City Hall. The attached chart summarizes the findings made in the Reports. Additional comments are as follows: 1. The district contains 125 parcels, shown on the map in Exhibit► and described in Exhibit II. 2. As of the date the Reports were prepared, the District was occupied by 96 buildings. Of those, 57 were found to be substandard buildings and 39 buildings were not found to be structurally substandard. Thus, 59.38%percent of the buildings are substandard. 3. The 9 buildings that are deemed substandard, including one building with no resolution declaring it substandard, were demolished within three years before the expected date of filing for certification of this District. The demolition of all buildings was financed by the City of Hugo, as further explained below. Demolition Date: Parcels and Coverage: SPRINGSTED 148 HLL ! 147TH w UPPER 1 w Q a- - 1 LL i M _ N.. H e J, VL w. UJ = J i41 ST - 7 -- LL -. r 40Tilk � LL y, w Y »r 4 � , I