HomeMy WebLinkAbout2011.05.09 EDA Packet AGENDA
CITY OF HUGO
ECONOMIC DEVELOPMENT AUTHORITY
MONDAY, MAY 9, 2011
8:30 AM
8:30 am 1. Call to Order
8:31 am 2. Roll Call
8:32 am 3. Approval of Minutes
EDA Meeting of April 11, 2011
8:35 am 4. Discussion on City Owned Property, Marketing Efforts,
and Purchase Agreement
• Mark Finnemann
• Dick Fischer
• Mike Brass
9:00 am 5. Discussion on Flexible Office Space
• Mike Graff
• Mike Brass
9:15 am 6. Discussion on Commercial and Industrial Design
Guidelines
9:45 am 7. Discussion on Tax Abatement
10:00 am 8. Discussion on EDA Business Cards
10:15 am 9. Update on Downtown Redevelopment
10:30 am W. Adjournment
A
BACKGROUND MEMO FOR THE EDA MEETING OF
MONDAY, May 9, 2011
3. APPROVAL OF MINUTES
Staff recommends approval of the minutes from the April 11, 2011, EDA Meeting as
presented.
a. DISCUSSION ON CITY OWNED PROPERTY MARKETING EFFORTS AND
PURCHASE AGREEMENT
The development team would like to have a discussion with the EDA on their marketing
efforts for the City owned property. They will make a presentation to the EDA. The
development team would also like to have a discussion on a year extension of the
purchase agreement for the property. The purchase agreement expires June 21, 2011.
5. DISCUSSION ON FLEXIBLE OFFICE SPACE
At the April EDA meeting there was discussion on flexible office space and possible
opportunities in Hugo. Commissioner Graff started the discussion and stated that he
would like to meet with property owners that have vacant space and talk to them about
this concept. The EDA directed staff to work with Commissioner Graff and set up
meetings with property owners.
Staff and Commissioner Graff met with Matt Alexander and Jack Appert from Kraus-
Anderson, who owns the Healtheast Building and has vacant space. They have heard of
flexible office space, but Kraus-Anderson has not used the concept before. They
mentioned a company called Regus that purchases space and converts it into flexible
office space. In regards to the Healtheast vacant space, Kraus-Anderson has not finished
the space. The space would need to be finished and furnished. This is not an expense they
would be willing to incur to accommodate for flexible office space. They also stated that
the space would need to be managed and they do not see Kraus-Anderson managing the
short-term lease involved with flexible office space, but would be open to a company
leasing the vacant space to operate and manage flexible office space.
Staff and Commissioner Graff will be contacting other property owners that have vacant
space.
Commissioner Graff would like to discuss the outcome of the meeting and other
information he has gathered for flexible office space.
Mike Brass, Welsh Co., will also be present at the meeting and will provide examples of
where it has worked in the surrounding areas and the best ways the concept works.
6. DISCUSSION ON COMMERCIAL AND INDUSTRIAL DESIGN GUIDELINES
Please see attached staff report and draft of design guidelines.
7. DISCUSSION ON TAX ABATEMENT
At the April EDA meeting, staff was asked to put together information for the basics of
tax abatement and how it can be used. Staff has included a document from Springsted on
the concepts and mechanics of tax abatement. Staff will present the information to the
EDA at the meeting.
8. DISCUSSION EDA BUSINESS CARDS
During the discussions on the marketing campaign for the City, the EDA has discussed
having business cards for each EDA member. Staff would like to discuss the options with
the EDA and provide the pros/cons for each. Staff recommends the EDA provide
feedback the options and let staff know the direction the EDA would like to move
forward.
9. UPDATE IN DOWNTOWN REDEVELOPMENT
Staff will update the EDA on the progress of downtown development.
t
MINUTES FOR THE EDA MEETING OF APRIL 11, 2011
Miron called the meeting to order at 8:30 am.
PRESENT: Arcand, Bever, Denaway, Graff, Klein, Puleo, and Miron
ABSENT: None
STAFF: Mike Ericson, City Administrator
Bryan Bear, Community Development Director
Rachel Juba, Planner
APPROVAL OF MINUTES FOR THE EDA MEETING OF MARCH 14, 2011
Denaway made motion, Klein seconded, to approve minutes for the EDA meeting of
March 14, 2011.
All aye. Motion carried.
PRESENTATION ON 2010 CENSUS INFORMATION
Staff presented the released 2010 Census information to the EDA. The information that
was presented was from the redistricting data, which is the 10 question form that was sent
to the public. Additional data is planned to be released in the summer. Hugo's population
is 13,332, which is a 110% increase from 2000. There are 4,990 households in Hugo and
approximately 2.67 people per household. The Metropolitan Council estimated Hugo's
population to be 19,100 for the year 2010. The population is lower than what they
estimated, but that is a good thing because the City has planned for a higher population
and will be ready for it when it comes. The redistricting data will affect Hugo in regards
to the boundaries for Senate, Congress, and City Council Wards.
DISCUSSION ON MULTIMEDIA MARKETING CAMPAIGN - STRATEGIC
PLAN
The 2010 Census information has started to be released and staff is ready to start putting
together the marketing information for the City. Enclosed in the packet was the
Multimedia Marketing Campaign Strategic Plan. Staff will be organizing all of the
information for the marketing section of the website. Staff recommended that EDA
provide feedback on the information that will be presented on the website. Staff showed
the EDA what other cities are doing in regards to City marketing.
There was discussion on other items to include in what we want the target market to
know. Miron stated that we need to do something different than what other cities do for
promotion and marketing. Commissioner Denaway recommended that the EDA may
want to approve a nonbinding resolution or policy statements that the EDA welcomes
new businesses and wants to work with businesses as they come to Hugo.
Z
DISCUSSION ON FLEXIBLE OFFICE SPACE
Flexible office space is furnished office areas for separate businesses to share. One
example is the businesses share a tenant space, but have separate areas to work (cubes).
This often includes shared storage space for files and/or a common receptionist for all the
businesses. Commissioner Graff started the discussion with the EDA on the idea of
flexible office space in Hugo.
He stated that this idea may help property owners with vacant space to collect rent and
till the space. There are several home based businesses in Hugo that may want an office
outside of their home and a place to have meetings with clients. He stated that he thinks
that the vacant space in the Healtheast building is a good place for this concept and would
like to have a discussion with the property owner. He also stated there are other vacant
buildings and other property owners he would like to meet with.
Miron stated that he thought this was a good idea and anything we can do to help
property owners fill vacant space is positive.
Puleo made a motion, seconded by Bever, to have staff contact property owners to have a
discussion on flexible office space and to include Commissioner Graff.
All aye. Motion Carried.
Miron asked staff to bring information on abatement to the EDA for its May meeting.
UPDATE THE DOWNTOWN REDEVELOPMENT CONCEPT PLAN— PETE
SAMPAIR
At its March 24, 2011, meeting the Planning Commission reviewed the downtown
redevelopment concept plan presented by Pete Sampair. The Planning Commission
generally agreed with the EDA on its comments and feedback to Mr. Sampair. The
Planning Commission stated that they liked the option with the main street atmosphere.
They provided feedback on the type of housing and encouraged four sided architecture.
Community Development Director, Bryan Bear, stated that now Mr. Sampair has
received feedback on the plans he can start the detailed development plans. Mr. Sampair
does not own all of the properties shown on the plan and will now meet with the other
property owners on acquiring properties.
UPDATE ON DOWNTOWN REDEVELOPMENT
Community Development Director, Bryan Bear, updated the EDA on the progress of
downtown redevelopment.
The bank that owns Ricci's restaurant building has stated that there is an interested buyer
and they expect a purchase agreement soon.
Hugo 1 Stop has reopened with a new operator/manager.
The development team that has the purchase agreement for the City owned property will
be attending a future EDA meeting to talk about their marketing efforts.
UPDATE ON KIDZ `N BIZ FEST AND HEALTH UP AND GO KICK OFF
EVENT
The 7`h annual Kidz `n Biz Fest is on Saturday, April 16, 2011, at Oneka Elementary
School from 11 am to 2 pm.
The Park Commission Health Subcommittee has put together a 148-day wellness
challenge that will kick off on Saturday, April 30, 2011, at Hugo City Hall from 9 am to
12pm. The summer-long wellness challenge includes a weekly walking club, speakers on
topics such as healthy snacks, exercise demonstrations, health screening, fun health
challenges, and lots of prizes. This event is part of the Statewide Health Improvement
Program (SHIP) and has received funding through SHIP.
DISCUSSION ON JOINT PLANNING COMMISSION AND EDA WORKSHOP
The Planning Commission has expressed interest in finding Hugo's identity. Bryan talked
with the Planning Commission about the different events and recreation programs that
have been currently taking place over the past few years. He shared what each of the
other commissions are working toward and how that might start shaping Hugo's identity.
The Planning Commission asked staff to share its interest with the EDA and was
interested in having a joint meeting with the EDA to discuss Hugo's identity.
The EDA liked the idea and wanted to invite the City Council to the meeting.
ADJOURNMENT
Klein made a motion, seconded by Denaway, to adjourn at 10:40 am.
All aye. Motion carried.
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PURCHASE AGREEMENT
by and between
THF, crry OF HUGO
(a Minnesota municipal corporation)
`Seller'
and
MARK FINNEMANN to be assigned to F13F LLC (LLC to be applied for )
(A Minnesota LLQ
"Buyer"
Dated Effective 101 ei d . 2010
TABLE OF CONTENTS
TO
PURCHASE AGREEMENT
Section Page
1. Sale of Property.............................................................................. 1
2. Purchase Price and Manner of Payment.................................................... 1
3. Buyer's Contingencies...................................................................... 1
4. Seller's Contengencies...................................................................... 2
5. Closing......................................................................................... 2
6. Prorations...................................................................................... 3
7. Title Examination............................................................................ 3
8. Operation Prior to Closing.................................................................. 4
9. Representations and Warranties by Seller................................................ 4
10. Casualty; Condemnation.................................................................... 5
11. Commissions................................................................................. 5
12. Assignment..................................................................................... 5
13. Survival........................................................................................ 5
14. Notices......................................................................................... 6
15. Miscellaneous................................................................................ 6
16. Remedies...................................................................................... 6
Exhibits
A Legal Description............................................................................ A-1 to 7
B Limited Warranty Deed..................................................................... B-1
6.11.10
PURCHASE AGREEMENT
THIS PURCHASE AGREEMENT ("Agreement") is made effective as of they S
day of Jtkkje, , 2010 (the "Effective Date"), between THE CITY OF HUGO, a
Minnesota municipal corporation ("Seller"), and MARK FINNEMANN , a Minnesota
resident,to be assigned to FBF LLC ( a Minnesota LLC ( to be applied for))("Buyer").
In consideration of this Agreement, Seller and Buyer agree as follows:
1. Sale of Property. Seller agrees to sell to Buyer, and Buyer agrees to buy
from Seller, the following property(collectively, "Property"):
1.1 Real Property. The real property located in Washington County, Minnesota
legally described on the attached Exhibit A ("Land"), together with (1) all
easements and rights benefiting or appurtenant to the Land (collectively the "Real
Property").
2. Purchase Price and Manner of Payment. The total purchase price
("Purchase Price") to be paid for the Property shall be Seven Hundred Seventy Thousand Two
Hundred and 00/100 Dollars ($770,200.00). The Purchase Price shall be payable as follows:
2.1 $500.00 as earnest money ("Earnest Money"), which Earnest Money shall be paid
to Seller contemporaneously with the execution of this Agreement.
2.2 $769,700.00 in cash or by wire transfer of immediately available funds on the
Closing Date
Seller, at its sole and absolute discretion, may reduce the Purchase Price upon approval
by the Hugo City Council of the architectural quality, building plans, site plan, proposed
use of the Property; alternatively, Seller at its sole and absolute discretion, may offer tax
increment financing to defray development costs.
3. Buyer's Contingencies. The obligations of Buyer under this Agreement
are contingent upon each of the following:
3.1 Representations and Warranties. The representations and warranties of Seller
contained in this Agreement must be true now and on the Closing Date as if made
on the Closing Date.
3.2 Access and Inspection. Seller shall have allowed Buyer, and Buyer's agents,
access to the Real Property without charge and at all reasonable times for the
purpose of Buyer's investigation and testing the same. Buyer shall pay all costs
and expenses of such investigation and testing, shall restore the Real Property,
and shall hold Seller and the Real Property harmless from all costs and liabilities
relating to Buyer's activities. Buyer shall have been satisfied with the results of
all such tests and investigations performed by it or on its behalf on or before the
Contingency Date (as hereinafter defined).
3.3 Title. Title shall have been found acceptable, or been made acceptable, in
accordance with the requirements and terms of Section 6 below.
3.4 Access to Highway. Buyer shall have obtained approval from the Minnesota
Department of Transportation for an addition access to the Land from Highway
61 at the north end of the Land on or before the Closing Date.
3.5 Developers.The obligations of the Buyer under this Agreement are contingent
upon the Seller and Buyer entering into a Development Agreement relating to the
Property according to terms agreeable to Buyer and Seller on or before the Closing Date.
The "Contingency Date" shall be the date that the contingencies are met but not latter than 12
months from the Effective Date. If Buyer is not satisfied with its inspection of the Property on or
before the Contingency Date or if title is not found acceptable to Buyer, or made acceptable, in
accordance with the requirements and terms of Section 6 or in the event of casualty or
condemnation under the terms of Section 9, then the Earnest Money shall be returned promptly
to Buyer, and Buyer will execute and deliver to Seller a termination of this Agreement in a form
acceptable to Seller, and Seller and Buyer shall have no further liability or obligations with
respect to this Agreement. If Buyer gives Seller notice on or before the Contingency Date that
the contingencies described in this Section required to be satisfied by the Contingency Date are
either satisfied or waived by Buyer, then the parties will proceed to close the transaction
contemplated hereby and, except as specifically set forth herein, the Earnest Money will be non-
refundable to Buyer but applicable to the Purchase Price.
4. Seller's Contingencies. The obligations of the Seller under this
Agreement are contingent upon the Seller and Buyer entering into a development agreement
relating to the Real Property according to terms acceptable to Buyer and Seller on or before the
Closing Date.
5. Closing. The closing of the purchase and sale contemplated by this
Agreement (the "Closing") shall occur on June 1, 2011 (the "Closing Date"), but Buyer may
close on any business day after the Effective Date by giving Seller at least five days' notice of
such earlier date for the Closing. The Closing shall take place at 10:00 a.m. Central Time at
Seller's office and conducted by a title company to be selected by Seller and licensed to do
business in the State of Minnesota ("Title Company"). Seller agrees to deliver possession of the
Property to Buyer on the Closing Date. Any party hereto may close via an escrow arrangement
with the Title Company.
5.1 Seller's Closing Documents. On the Closing Date, Seller shall execute and
deliver to Buyer the following (collectively, "Seller's Closing Documents"), all in
form and content reasonably satisfactory to Buyer:
5.1.1 Deed. A Limited Warranty Deed conveying to Buyer a vendee's interest
in the Property in the form attached hereto as Exhibit C.
5.1.2 FIRPTA Affidavit. A non-foreign affidavit, properly executed, containing
such information as is required by Internal Revenue Code
Section 1445(b)(2) and its regulations.
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5.1.3 IRS Forms. A Designation Agreement designating the "reporting person"
for purposes of completing Internal Revenue Form 1099 and, if applicable,
Internal Revenue Form 8594.
5.1.4 Well Certificate. A Certificate signed by Seller warranting that there are
no "Wells" on the Land within the meaning of Minn. Stat. § 103I or, if
there are "Wells", a Well Certificate in the form required by law.
5.1.5 Other Documents. All other documents reasonably determined by Buyer
or the Title Company to be necessary to transfer the vendee's interest in
the Property to Buyer.
5.2 Buyer's Closing Documents. On the Closing Date, Buyer will execute and
deliver to Seller the following(collectively, "Buyer's Closing Documents"):
5.2.1 Payment. $769,700.00, by cash or by wire transfer of immediately
available funds.
5.2.2 Development Agreement. A development agreement according to the
terms and in the form required by Seller.
5.2.3 Other Documents. All other documents reasonably determined by Seller
or the Title Company to be necessary to transfer the vendee's interest in
the Property to Buyer.
6. Prorations. Seller and Buyer agree to the following pro-rations and
allocation of costs regarding this Agreement:
6.1 Title Insurance and Closing Fee. Seller will pay all costs of the Title Evidence.
Buyer will pay the premium required for the issuance of the Title Policy. Seller
and Buyer will each pay one-half of any closing fee or charge imposed by the
Title Company.
6.2 Deed Tax. Seller shall pay all State Deed Tax payable in connection with this
transaction.
6.3 Real Estate Taxes and Special Assessments. Real Estate 'faxes and installments
of Special Assessments payable in the year in which Closing occurs shall be pro-
rated based upon the Closing Date.
6.4 Other Costs. All other operating costs of the Property shall be allocated between
Seller and Buyer as of the Closing Date, so that Seller pays that part of operating
costs payable before the Closing Date and Buyer pays that part of operating costs
payable from and after the Closing Date.
6.5 Attorneys' Fees. Each of the parties will pay its own attorneys' fees, except that a
party defaulting under this Agreement or any Closing Document will pay the
reasonable attorneys' fees and court costs incurred by the nondefaulting party to
enforce its rights hereunder.
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7. Title Examination. Title Examination will be conducted as follows:
7.1 Seller's Title Evidence. Seller shall, within 10 days after the Effective Date,
furnish the following ("Title Evidence") to Buyer: (a) a commitment ("Title
Commitment") for an ALTA 2006 Owner's Policy of Title Insurance ("Title
Policy") insuring title to the Real Property, in the amount of the Purchase Price,
issued by the Title Company; (b) a current survey prepared by a registered land
surveyor and complying with Minimum Standard Detail Requirements for
ALTA/ACSM Land Title Surveys(2005)
7.2 Buyer's Objections. Within 10 days after receiving the Title Evidence, Buyer will
make written objections ("Objections") to the form and/or contents of the Title
Evidence. Any matter shown on such Title Evidence and not objected to by
Buyer within the foregoing 10-day period, shall be a "Permitted Encumbrance"
hereunder. Seller will have 30 days after receipt of the Objections to cure the
Objections, during which period the Closing will be postponed, if necessary.
Seller shall use its best efforts to correct any Objections. To the extent an
Objection can be satisfied by the payment of money only, Seller shall have the
right to apply a portion of the cash payable to Seller at the Closing to the
satisfaction of such Objection, and the amount so applied shall reduce the amount
of cash payable to Seller at the Closing. If the Objections are not cured within
such 30-day period, Buyer will have the option to do any of the following:
7.2.1 Terminate this Agreement; or
7.2.2 Waive the Objections and proceed to close.
8. Operation Prior to Closing. During the period from the date of Seller's
acceptance of this Agreement to the Closing Date (the "Executory Period"), Seller and Buyer
shall operate and maintain the Property in the ordinary course of business in accordance with
prudent, reasonable business standards. Seller shall execute no contracts, leases or other
agreements regarding the Property during the Executory Period that are not terminable on or
before the Closing Date, without the prior written consent of Buyer, which consent shall not be
unreasonably withheld. Seller agrees to forward all reasonable inquiries related to sale of the
property to buyer.
9. Representations and Warranties b_ Sy eller. Seller represents and warrants
to Buyer as follows:
9.1 Existence, Authority. Seller has the requisite power and authority to enter into
and perform this Agreement and Seller's Closing Documents; such documents are
valid and binding obligations of Seller, and are enforceable in accordance with
their terms.
9.2 Seller's Defaults. Seller is not in default concerning any of its obligations or
liabilities regarding the Property.
9.3 FIRPTA. Seller is not a "foreign person", "foreign partnership", "foreign trust"
or "foreign estate", as those terms are defined in Section 1445 of the Internal
Revenue Code.
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9.4 Proceedings. There is no action, litigation, investigation, condemnation or
proceeding of any kind pending or threatened against Seller or any portion of the
Property.
9.5 Wells. The Seller certifies and warrants that the Seller does not know of any
"Wells" on the Land within the meaning of Minn. Stat. § 103I. This
representation is intended to satisfy the requirements of that statute.
9.6 Sewage Treatment System Disclosure. For the purposes of satisfying any
applicable requirements of Minn. Stat. § 115.55, Seller discloses and certifies
that:
a) Seller has no knowledge of the existence of an abandoned individual
sewage treatment system on the Land.
Except as herein expressly stated, Buyer is purchasing the Property based upon its own
investigation and inquiry and is not relying on any representation of Seller or other person and is
agreeing to accept and purchase the Property "as is, where is" subject to the conditions of
examination herein set forth and the express warranties herein contained.
10. Casualty; Condemnation. If all or any part of the Real Property is
substantially damaged by fire, casualty, the elements or any other cause, Seller shall immediately
give notice to Buyer, and Buyer shall have the right to terminate this Agreement by giving notice
within 30 days after Seller's notice. If Buyer shall fail to give the notice, then the parties shall
proceed to Closing, and Seller shall assign to Buyer all rights to insurance proceeds, up to the
Purchase Price, resulting from such event and shall pay to Buyer the amount of any deductible or
co-insurance. If eminent domain proceedings are threatened or commenced against all or any
part of the Real Property, Seller shall immediately give notice to Buyer, and Buyer shall have the
right to terminate this Agreement by giving notice within 30 days after Seller's notice. If Buyer
shall fail to give the notice, then the parties shall proceed to Closing, and Seller shall assign to
Buyer all rights to appear in and receive any award from such proceedings.
11. Broker's Commission. Seller and Buyer represent to each other that they
have dealt with no other brokers, finders or the like in connection with this transaction, and agree
to indemnify and hold each other harmless from all claims, damages, costs or expenses of or for
any other such fees or commissions resulting from their actions or agreements regarding the
execution or performance of this Agreement, and will pay all costs of defending any action or
lawsuit brought to recover any such fees or commissions incurred by the other party, including
reasonable attorneys' fees.
12. Assi ng ment. Seller may assign its rights under this Agreement before or
after the Closing. Buyer may only assign its rights under this Agreement upon written consent
from Seller, which consent may be withheld in Seller's sole and absolute discretion. Any such
assignment will not relieve such assigning party of its obligations under this Agreement.
13. Survival. All of the terms of this Agreement and warranties and
representations herein contained shall survive and be enforceable after the Closing.
14. Notices. Any notice required or permitted hereunder shall be in writing
and given by personal delivery upon an authorized representative of a party hereto; or if mailed
-5-
by United States registered or certified mail, return receipt requested, postage prepaid; or if
deposited cost paid with a nationally recognized, reputable overnight courier, properly addressed
as follows:
If to Seller: The City of Hugo
14669 Fitzgerald Avenue North
Hugo, MN 55038
Attn: Bryan Bear
With Copy to Eckberg Lammers Law Firm
1809 Northwestern Avenue
Stillwater,MN 55082
Attn: David K. Snyder
If to Buyer: Mark Finnemann
2145 Ford Parkway#301
SaintPaul,Minnesota 55116
Notices shall be deemed effective on the earlier of the date of receipt or the date of deposit, as
aforesaid; provided, however, that if notice is given by deposit, the time for response to any
notice by the other party shall commence to run one business day after any such deposit. Any
party may change its address for the service of notice by giving notice of such change 10 days
prior to the effective date of such change.
15. Miscellaneous. The paragraph headings or captions appearing in this
Agreement are for convenience only, are not a part of this Agreement, and are not to be
considered in interpreting this Agreement. This written Agreement constitutes the complete
agreement between the parties and supersedes any prior oral or written agreements between the
parties regarding the Property. There are no verbal agreements that change this Agreement, and
no waiver of any of its terms will be effective unless in a writing executed by the parties. This
Agreement binds and benefits the parties and their successors and assigns. This Agreement has
been made under the laws of the State of Minnesota,and such laws will control its interpretation.
16. Remedies. If Buyer defaults under this Agreement, Seller shall have the
right to terminate this Agreement in accordance with the applicable Minnesota statutes. If Buyer
fails to cure such default within the statutory cure period, this Agreement will terminate, and
upon such termination Seller will retain the Earnest Money as liquidated damages, time being of
the essence of this Agreement. If Seller defaults under this Agreement, Buyer shall have the
right to commence an action for specific performance of this Agreement as Buyer's sole and
exclusive remedy under this Agreement.
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IN WITNESS WHEREOF, Seller and Buyer have executed this Agreement effective as
of the Effective Date.
Date of Signature SELLER:
2010 THE CITY OF HUGO
(a Minnesota municipal corporation)
By Q— -
Its: G,.-. ate.47 C>'/'t ��rem�r
Date of Signature BUYER:
r .
2010
001,
By
Mar FINNEMANN
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EXHIBIT A
TO
PURCHASE AGREEMENT
LAND LEGAL DESCRIPTION
Parcel 1:
The M/2 of Lot No. 10 and part of the S'/Z of said Lot No. 10 of County Auditor's Plat No. 7,
described as follows: Commencing at the NW corner of said S``/z of Lot No. 10; thence East
along the North line thereof for 58 feet; thence South at right angle to said North line thereof for
7 feet; thence N W'ly to the point of beginning and also described as follows:
That part of Government Lot 4, Section 20, Township 31 North, Range 21 West, City of Hugo,
Washington County, Minnesota and that part of COUNTY AUDITORS PLAT NO. 7, according
to the plat thereof on file and of record in the Office of the County Recorder, Washington
County, Minnesota described as follows:
Commencing at the northeast corner of said Government Lot 4, thence South 89 degrees 05
minutes 26 seconds West, bearings are based on the Washington County Project Coordinate
System, North 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 736.79 feet to a '/2 inch iron
pipe monument marked with a plastic cap inscribed ANEZ RLS 13775 and which is also the
point of beginning of the land to be described; thence continuing South 11 degrees 01 minute 52
seconds West, a distance of 48.0 feet to a '/2 inch iron pipe monument marked with a plastic cap
inscribed RLS 13590; thence South 81 degrees 48 minutes 31 seconds East, a distance of 50 feet
to a % inch iron pipe monument marked with a plastic cap inscribed RLS 13590; thence North 81
degrees 07 minutes 37 seconds East, a distance of 51.83 feet to a '/z inch iron pipe monument
marked with a plastic cap inscribed RLS 13590; thence North 89 degrees 30 minutes 25 seconds
East, to the westerly shoreline of Egg Lake; thence northerly along said westerly shoreline to the
intersection with a line that bears North 89 degrees 30 minutes 25 seconds East from the point of
beginning; thence South 89 degrees 30 minutes 25 seconds West to the point of beginning.
Property Identification Number: 20.031.21.24.0041
[Property Identification Numbers are for reference purposes only and do not form a part
of the legal description]
A-1
EXHIBIT A
TO
PURCHASE AGREEMENT
LAND LEGAL DESCRIPTION
Parcel 2:
Lot 11, excepting therefrom the following described real estate:
Beginning at the Southwest corner of said Lot, and running thence East on the South line thereof
to the Southeast corner of said Lot, thence Northerly on the East line of said Lot, 3 feet to a
point; thence Northwesterly to a point in the West line of said Lot, 10 feet Northerly from the
Southwest corner of said Lot, and then Southerly along the West line of said Lot to the place of
beginning.
All being in County Auditor's Plat No. 7, according to the plat thereof on file and of record in
the office of the County Recorder, Washington County, Minnesota.
Property Identification Number: 20.031.21.24.0043
[Property Identification Numbers are for reference purposes only and do not form a part
of the legal description]
A-2
EXHIBIT A
TO
PURCHASE AGREEMENT
LAND LEGAL DESCRIPTION
Parcel 3:
The South Half(S-'/z) of Lot 10, excepting therefrom that part of the South Half(S-`/z) of Lot 10
included within the following described real estate:
That part of Government Lot 4, Section 20, Township 31 North, Range 21 West, City of Hugo,
Washington County, Minnesota and that part of COUNTY AUDITORS PLAT NO. 7, according
to the plat thereof on file and of record in the Office of the County Recorder, Washington
County, Minnesota described as follows:
Commencing at the northeast corner of said Government Lot 4, thence South 89 degrees 03
minutes 26 seconds West, bearings are based on the Washington County Project Coordinate
System, North Zone, along the North line of said Govermuent Lot 4, a distance of 770.34 feet;
thence South 11 degrees 01 minute 52 seconds West, a distance of 736.79 feet to a `/z inch iron
pipe monument marked with a plastic cap inscribed ANEZ RLS 13775 and which is also the
point of beginning of the land to be described; thence continuing south 11 degrees 01 minute 52
seconds West, a distance of 48.0 feet to a '/2 inch iron pipe monument marked with a plastic cap
inscribed RLS 13590; thence South 81 degrees 48 minutes 31 seconds East, a distance of 50 feet
to a ''/2 inch iron pipe monument marked with a plastic cap inscribed RLS 13590; thence North 81
degrees 07 minutes 37 seconds East, a distance of 51.83 feet to a '/z inch iron pipe monument
marked with a plastic cap inscribed RLS 13590; thence North 89 degrees 30 minutes 25 seconds
East,to the westerly shoreline of Egg Lake; thence northerly along said westerly shoreline to the
intersection with a line that bears North 89 degrees 30 minutes 25 seconds East from the point of
beginning; thence South 89 degrees 30 minutes 25 seconds West to the point of beginning.
Property Identification Number: 20.031.21.24.0042
[Property Identification Numbers are for reference purposes only and do not form a part
of the legal description]
A-3
EXHIBIT A
TO
PURCHASE AGREEMENT
LAND LEGAL DESCRIPTION
Parcel 4:
That part of Lots Nine (9) and Ten (10) of County Auditors Plat No. 7, Washington County,
Minn., described as follows, to wit:
Commencing at the northeast corner of Government No. Four (4), Section Twenty (20),
Township Thirty-one (3 1) North, of Range Twenty-one (2 1) West, City of Hugo, Washington
County, Minnesota; thence South 89°05'26" West, bearings are based on the Washington County
Project Coordinate System, North Zone, along the north line of said Government Lot Four (4), a
distance of Seven Hundred Seventy and Thirty-four Hundredths (770.34) feet; thence South
11°01'52" West, a distance of Six Hundred Thirty-six and Sixty-one Hundredths(636.61) feet to
a `/2 inch iron pipe monument marked with a plastic cap inscribed RLS 6617; thence South
11°01'52" West, a distance of One Hundred and Eighteen Hundredths (100.18) feet to a % inch
iron pipe monument marked with a plastic cap inscribed ANEZ RLS 13775; thence North
89°30'25" East, a distance of Two Hundred Twenty-one and Thirty-four Hundredths (221.34)
feet to a '/z inch iron pipe monument marked with a plastic cap inscribed ANEZ RLS 13775 and
which is also the point of beginning of the parcel of land to be described; thence South
89°30'25" West, a distance of Two Hundred Twenty-one and Thirty-four Hundredths (221.34)
feet to a '/z inch iron pipe monument marked with a plastic cap inscribed ANEZ RLS 13775;
thence North 11'01'52" East, a distance of One Hundred and Eighteen IIundredths (100.18) feet
to a '/z inch iron pipe monument marked with a plastic cap inscribed RLS 6617; thence North
89°30'25" East, a distance of One Hundred Fifty (150.00) feet to a ''/z inch iron pipe monument
marked with a plastic cap inscribed RLS 6617; thence North 89°30'25" East, a distance of One
Hundred Nineteen and Sixty-nine Hundredths (119.69) feet to a % inch iron pipe monument
marked with a plastic cap inscribed ANEZ RLS 13775; thence continuing North 89°30'25" East
to the shore of Egg Lake; thence southwesterly along the shore of F,gg Lake to its intersection
with a line that bears North 89°30'25" East from the point of beginning; thence South 89°30125"
West to the point of beginning.
Property Identification Number: 20.031.21.24.0040
[Property Identification Numbers are for reference purposes only and do not form a part
of the legal description]
A-4
EXHIBIT A
TO
PURCHASE AGREEMENT
LAND LEGAL DESCRIPTION
Parcel 5:
All that part of Lot number 8, of County Auditor's Plat No. 7, Washington County, Minnesota,
as surveyed and platted and now on file and of record in the office of the Register of Deeds, in
and for the County of Washington and State of Minnesota described as follows, to wit:
Beginning at the Southwest corner of said Lot, and running thence East on the South line thereof
150 feet to a point; thence North on a line parallel with the West line of said Lot, 50 feet to a
point; thence West on a line parallel with the South line of said Lot, 150 feet to the West line of
said Lot and thence Southerly on the West line of said Lot, 50 feet more or less, to the place of
beginning.
Property Identification Number: 20.031.21.24.0035
[Property Identification Numbers are for reference purposes only and do not form a part
of the legal description]
A-5
EXHIBIT A
TO
PURCHASE AGREEMENT
LAND LEGAL DESCRIPTION
Parcel 6:
That part of Lot 8 of County Auditor's Plat No. 7, Washington County, Minnesota, described as
follows: Beginning at a point on the Westerly line of said Lot 8 (also the Easterly line of Forest
Boulevard North) distant 50 feet Northeasterly of the Southwest corner of said Lot 8) thence
Northeasterly, along said Easterly road line 83.9 feet, more or less, to a point distant 287.54 feet
Southwesterly of the Northwest corner of Lot 7 of said County Auditor's Plat No. 7; thence
Southeasterly, deflecting 89 degrees 33 minutes 35 seconds to the right, 117.6 feet, more or less,
to the intersection with a line drawn Northeasterly, parallel with the Westerly line of said Lot 8,
from a point on the Southerly line of said Lot 8 distant 120 feet East of the Southwest corner
thereof, thence Southwesterly, along said parallel line, 60.8 feet, more or less, to its intersection
with a line drawn Easterly, parallel with the South line of said Lot 8, from the point of beginning;
thence Westerly, along said parallel line, 120 feet to the point of beginning.
excepting and reserving to the said state, in trust for taxing districts concerned, all minerals and
mineral rights, as provided by law.
Property Identification Number: 20.031.21.24.0038
[Property Identification Numbers are for reference purposes only and do not form a part
of the legal description]
A-6
EXHIBIT A
TO
PURCHASE AGREEMENT
LAND LEGAL DESCRIPTION
Parcel 7:
That part of Lots 8 and 9 of COUNTY AUDITORS PLAT NO. 7, Washington County,
Minnesota, described as follows:
Commencing at the northeast corner of Government Lot 4, Section 20, Township 31 North,
Range 21 West, City of Hugo, Washington County, Minnesota; thence South 89 degrees 05
minutes 26 seconds West, based on the Washington County Coordinate System, North Zone,
along the north line of said Government Lot 4, a distance of 770.34 feet; thence South 11 degrees
01 minutes 52 seconds West, a distance of 636.61 feet to a '/z inch iron pipe monument marked
with a plastic cap inscribed RLS 6617; thence North 89 degrees 30 minutes 25 seconds East, a
distance of 150.00 feet to a ''/2 inch iron pipe monument marked with a plastic cap inscribed RLS
6617 and the point of beginning; thence North 10 degrees 51 minutes I 1 seconds East, 50 feet;
thence South 89 degrees 30 minutes 25 seconds West, 30 feet, more or less, to the easterly line or
the southerly extension of the easterly line of the Van Buskirk parcel as described on a Warranty
Deed, recorded as Document No. 622656; thence northeasterly, along said easterly line and/or its
extension to the northeast corner of said Van Buskirk parcel; thence northwesterly, along the
northerly line of said Van Buskirk parcel to the northwesterly corner of said parcel; thence
northeasterly, along the westerly line of Lot 8 of said COUNTY AUDITORS PLAT NO. 7 to a
point distant 271.54 feet southwesterly of the northwest corner of Lot 7 of said COUNTY
AUDITORS PLAT NO. 7; thence southeasterly, to a point on the southerly extension of the
westerly line of the recorded plat of KENNETH N. GRANGER ADDITION, as monumented,
distant 303.92 feet southwesterly of the northwest corner of said plat; thence northeasterly, along
said southwesterly extension to a point distant 52.40 feet southwesterly of southwest corner of
Lot 2 of said KENNETH N. GRANGER ADDITION; thence southeasterly 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 Street as dedicated in said plat); thence southerly, along
the westerly line of said Lot 3 to the shoreline of Egg Lake; thence southwesterly; along said
shoreline to the point of intersection 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 seconds West
along said line to the point of beginning.
Subject to a 64 foot wide permanent easement for exclusive use and possession from the
northerly line of the above described parcel to the shoreline of Egg Lake. The east line of said
easement is the west line of said Lot 3.
Property Identification Number: 20.031.21.24.0039
[Property Identification Numbers are for reference purposes only and do not form a part
of the legal description]
A-7
EXHIBIT B
TO
PURCHASE AGREEMENT
LIMITED WARRANTY DEED
.ler ddi.quem taxes and W.A.ememd;C.NEiwte cd(teal[ .w Value( )fled( )not
squired Ceruf w of Real Ev—Value Na _
Cmmy Audhor
By
STATE:DEED TAX DUE tQREON:S
Dai.. 2f_,. (—cd darn)
LIMITED WARRANTY DEED
FOR VALUABLE CONSIDERATION, THE CITY OF HUGO,a Minnesota municipal corporation("Grantor"),conveys and
quitclaims to MARK FINNEMANN("Grantee"),real property in Washington County,Minnesota,legally described as follows:
See attached Exhibit A
together with all hereditaments and appurtenances belonging thereto.
This Limited Warranty Deed conveys after-acquired title. Grantor warrants that Grantor has not done or suffered anything to
encumber the property.
The Grantor certifies that the Grantor does not know of any wells on the described real property.
(Affix Deed Tax Stamp I lere) THE CITY OF HUGO
(a Minnesota municipal corporation)
By:
Its:Mayor
By:
Its:Clerk
STATE OF MINNESOTA )
)SS.
COUNTY OF )
The foregoing was acknowledged before me this_day of 2010,by ,the Mayor,and
the City Clerk,of THE CITY OF HUGO,a Minnesota municipal corporation,Grantor.
Notary Public
THIS INSTRUMENT WAS DRAFTED BY. Send Tax Statements for the real property described herein to:
ECUERG,LAMMERS,BRIGGS, Michael Finnemaan
WOLFF R VIERLING,P 1.1.P.(BCH)
1809 Northwestern Av me
Stillwater,MN 55082
B-1
V'S• Flignway 6j
Existing f
Downtown
! . • • Event Center Commercial _ ..>�
arr s
Futur Future
The Subject Property is located conveniently on the picturesque Egg Lake with 400 lineal feet of lake frontage Commercial Commercial
Via aft
sl
and an additional 380 feet of lineal visibility to Highway 61. Consisting of approximately 3 acres, it is located in 1
Future
the heart of downtown Hugo and just minutes from the newly expanded freeway interchange of 35E and CountyCommer`
Road 14. This Subject Property offers prime development for multiple, community friendly/entertainment Residential
business. II��1I
Egg Lake
1
Demographics 1 Mile 3 Miles 5 Miles ;
2009 Population 3,919 16,280 34,625 EVENT CENTER �-
CONCEPT SITE PLAN
Average Household Income $78,559 $86,095 $93,211 " °Minne5O28
11 032010
Median Household Income $81,195 $83,582 $85,233
Area Tenants:
• Festival • Guys &Dolls
• Subway • Clinic&Pharmacya�
Blue Heron • Northern Lights
2,500 S.F. 2,500 S.F. Restaurant Pediatrics
• Savoy Pizza • Oneka Dental
• Mediacorn • Northeast Eye Care �' *'' 'I •
• Wagner's Nursery • Health Source ffiE" '
• Dunn Brothers 0 US Bank / • �� �
• Papa Murphy's • Hugo Feed Mill '•
3,000 S.F. 3,600 S.F. 3,000 S.F. �;fni>vn�ti t '
Great Clips &Hardware
• Kwik Trip • Domino's H.""� ti• k
i
• Snap Fitness • Edward Jones a o
• Martinizing Dry • Hugo Dental Care •� ' Egg Lake
Cleaning • Optical
• Amian American • Hugo Chiropractic Lakes
t
Bistro • Martial Arts
• Bates Orthodontists • Sertino's Cafe '
• Lake Area Bank • Luxury Nails , ' •�'
• Pet Hospital • Pediatric Therapy '.1z • .
Kinder Gardens Chiro Specialist
e
EVENT CENTER � p
CONCEPT FLOOR PLAN Verizon • Hawaiian Tan
Hugo,Minnesota
11.03.2010 • Fantastic Sams 3 `
N/JI WELSH
low
.rte �. ��, • • • •
le
. r
.�.� _. -�
r----, Oneka Lake Highway 6 1 � I
X
Hugo, Minnesota
eP
61
El . For more information contact:
❑❑ 0
' SITE Rice Lake Mike Brass
s Vice President
F! Egg Lake Tel 612.750.4312
Z �u�� o mbrass@welshco.com
m �
�J -137th St N
1 F
\ Ju 1
daniels-4
NAI Welsh 4700 Lexington Avenue N, Suite B Shoreview, MN 55126 Tel 952.837.3050 www.welshco.com '° w c HITE CTS
Agenda Number 6
CITY OF HUGO COMMUNITY
DEVELOPMENT DEPARTMENT
Memorandum
TO: Hugo Economic Development Authority
FROM: Rachel Simone, Planner
SUBJECT: Commercial and Industrial Design Guidelines
DATE: May 5, 2011, for the EDA Meeting of May 9, 2011
1. BACKGROUND:
The comprehensive plan discourages "big box" commercial buildings. The implementation
portion of the plan states that the City should adopt an ordinance to limit building size in order to
be consistent with the comp plan. The ordinance review committee (ORC) thought that large
commercial buildings may be alright as long as they're designed correctly and instead of having
an ordinance to limit building size, the same intent can be achieved with design guidelines. The
EDA agreed with the ORC and stated that they would like staff to start working on design
guidelines for the EDA's review.
At its July 12, 2010, meeting staff gave a presentation to the EDA on design guidelines and asked
for feedback on the discussion topics. The EDA agreed that they would like to see 4-sided
architecture, variation of materials, and architecture variations on long walls. The EDA also
stated that they did not want to discourage businesses from coming to Hugo because of strict
design guidelines and the costs that may be associated with them. They directed staff to have the
same discussion with the Planning Commission and get their feedback. The EDA stated that they
would like the Planning Commission to take charge of the design guidelines and bring back to
the EDA for their review. Staff made a presentation on design guidelines to get input from the
Planning Commission.
At its August 12, 2010, meeting, staff presented information on design guidelines and the
recommendation from the EDA and the ORC to the Planning Commission. At the meeting the
staff provided examples of other cities design guidelines to the Planning Commission for its
review. There is variation between each example on the strictness of the guidelines. The Planning
Commission agreed with the EDA on the desire for quality architecture in Hugo and that there is
a way to create design guidelines without discouraging businesses to locate in Hugo.
The Planning Commission made a recommendation to the City Council to appoint a
subcommittee of the Planning Commission to start working on design guidelines. The members
from the Planning Commission are Bob Rosenquist, Rick Gwynn, and Bronwen Kleissler. The
drafts will be brought back to the EDA and Planning Commission for their review and
recommendations. At its September 20, 2011, meeting, the City Council authorized staff to
prepare draft design guidelines for review by the Planning Commission subcommittee.
2. OVERVIEW OF COMMERCIAL AND INDUSTRIAL DESIGN GUIDELINES:
Over the past months the subcommittee has been working on the creation of the commercial and
industrial design guidelines. The guidelines include text and graphics to provide developers with
further direction on the desire for quality commercial and industrial development. The
subcommittee stated that they wanted the guidelines to be subjective to allow a developer to be
creative when meeting the intent of the guidelines.
The guidelines encourage quality development by providing direction on building design, color,
and material. They also provide direction on other aspects of the development for example
signage, screening and lighting. The guidelines allow flexibility for industrial development in the
strict directions on four-sided architecture, screening, and building footprint. There are also
exceptions for properties that are not serviced by City sewer and water and have potential for
redevelopment.
The subcommittee wanted the Planning Commission and EDA to review the draft design
guidelines prior to a final draft being complete to ensure they were moving in the correct
direction.
At its April 14, 2011, meeting the Planning Commission reviewed the draft commercial and
industrial design guidelines. They generally liked the draft and thought it was not overly
restrictive to discourage businesses to come to Hugo. The Planning Commission made a
recommendation of approval of the draft guidelines. Staff reminded the Planning Commission
that the draft would also be forwarded to the EDA for its feedback.
3. CONCLUSION AND RECOMMENDATION:
Staff recommends the EDA provide feedback on the draft design guidelines after staff's
presentation.
If the EDA is comfortable with the draft, staff will schedule a public hearing for the approval of
the design guidelines.
Attachments:
1. Draft Commercial and Industrial Design Guidelines
u,
r
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A
hawaiant' n
City of Hugo
r
Commercial and Industrial
Design Guidelines
TABLE OF O'ONT Yrs
1.0 Intent of Design Guidelines
2.0 Four-Sided Design
3.0 Building Materials and Design
4.0 Building Colors
5.0 Building Entrances
6.0 Signage
7.0 Screening
8.0 Lighting
9.0 Gutters and Downspouts
10.0 Industrial Zoning Districts
11.0 Exceptions
1.0 INTENT OF DESIGN GU D1__j SINES
1 .1 These guidelines apply to all commercial and industrial zoning districts.
1.2 The City of Hugo has adopted the 2030 Comprehensive Plan which contains specific imple-
mentation items related to improving the downtown and creating design guidelines to ensure
quality architecture in commercial and industrial buildings.
1.3 The general intent of these design guidelines is improve the overall quality of development, to
encourage unified development, and to ensure the compatibility of development with sur-
rounding land uses.
1.4 The purpose of the guidelines is to provide further direction and clarification of the desired
character for commercial and industrial development through pictures, graphics, and illustra-
tions.
�, 0 FOUR-SIDED DESIGN
2.1 Buildings shall not look like they have a fake fagade applied to the front of them. Buildings
shall be designed to ensure they look like the same building on all sides. Consistent building
details and proportions shall be used on all sides to ensure a four-sided architectural quality
of buildings. Building architecture shall look as if the building has no unfinished or inconsistent
back side.
2.2 The design of the building shall provide consistent architectural details and avoid repetitive
building massing and design. Architectural details and colors shall be consistent on all build-
ing walls.
Don't Do This:
a
This building has no detailing on one wall
This building does not use four-sided design. The
architecture does not wrap around the building.
Do This:
1
This building has continued design elements to create
a four sided design.
This is a back side of a retail building. The architectural
features are used on all sides to ensure the back side
looks like the front of the building.
3.0 I UIIA)ING MATERIALS AND DESIGN
3.1 Buildings shall be attractive and durable. To ensure this, buildings shall be constructed of high
quality materials that require minimal maintenance.
3.2 There shall be variation of building materials and accent materials integrated with the archi-
tectural design of the building.
3.3 Allowed Materials. Exterior building materials shall substantially utilize, but are not limited to
the following:
• Stone • Stucco
• Cast Stone • EIFS
• Brick • High Quality Wood
• Integrally-Colored Split-Face • Metal as an accent
Rock • Glass
3.4 Prohibited Materials. The following materials shall not be used:
• Vinyl Siding • Metal Siding
• Smooth-Faced Gray or Stained Concrete Block.
• Painted Concrete Block
• Tip-up Concrete Panels,
except as allow under section 10.5
3.5 Proper detailing on the corners allows a building to be more pleasing to the eye because the
corners appear to be structurally supported.
3.6 Stone and brick used on exterior walls shall not terminate at exterior corners.
Interior Corner
Exterior Corner
3.7 Where possible, vertical change of materials from stone or brick to another material shall oc-
cur at an interior corner. Alternatively, the material shall wrap around the exterior corner of the
building and terminate a distance from the corner determined by the size and scale of the
building.
3.8 Horizontal change of materials from stone or brick to another material shall include a stone
cap or brick sill; the cap or sill shall project from the face of the building.
3.0 BUILDING MATERIALS ANI) DESIGN
3.10 Long, large buildings can be uninteresting if they contain large or long sections of surface
area with no detailing, recesses or projections in building walls to help subdivide the massing
of large buildings. This shall be avoided .Buildings shall include at least one change in both
wall planes and roof lines, such as recessions and projections that provide depth.
3.11 Columns, pilasters, or vertical changes in the wall plane or texture shall be considered.
3.12 There shall be significant window coverage on each front that faces a street, commercial
building or residential building. Windows shall be vertically proportioned, this allows the win-
dow opening to appear to be structurally supported.
Don't Do This:
m �.
This large building has a long wall with no detail or
windows.
Do This: 7
�a
These buildings have broken up the large building walls
with projections, details, and windows. There is signifi-
cant
i nifi- • j
J 9
cant window coverage on each side of the building.
These buildings also use variations in materials and Tn ;
projections to create interest to the design.
lilt
l � �
4.013UILDING COLORS
4.1 To help create a sense of place, buildings within a development shall use colors that are com-
patible.
4.2 Color schemes shall tie building elements together, relate separate buildings within the same
development, and enhance the architectural form of a building.
4.3 Preferred colors are earth tones. Gray colors shall be avoided.
4.4 All building accessories, including but not limited to, meters, vents, gutters, and utilities shall
match or compliment the color of the surface which they are located.
Don't Do This:
MUMLEASINGrnn,���
ago _
-Li Ll� 1,W�MMW �M� Alt
a
Although this building is broken up by windows, there is This building has no variation in color. The color is
no variation in color. The color is grayscale and painted grayscale and painted concrete
concrete
Do This:
•; n
These buildings have variation in color and provide Industrial buildings can have the tendency to use gray
colors that relate to each other. The compatible color tip-up panels, whether flat or with an architectural
scheme ties the building together. finish. This building uses the tip up panels, but chose
an earth tone color that can enhance the look of the
building in a simple way.
5.0 BUILDING ENTRANCES
5.1 Customer and public entrances shall ensure accessibility to the public and create a primary
focal point for pedestrian entry
5.2 Each building, regardless of size, shall have a clearly defined, highly visible entrance and
may feature the following details:
• Overhangs
• Recesses/projections
• Arcades
• Raised cornice or parapet over the door
• Peaked roof forms
• Arches
Don't Do This:
This building does not have an articulated entrance and
does not create a focal point at the entrance.
Do This:
_
emu
r
Both of these buildings have a clearly defined
entrances. The entrances are the focal point of the
building and are highly visible to the public.
6.0 SIGNA('j'r E
6.1 Signage shall be integrated into the overall design of the building. Signs shall be located to
complement the architectural features of a building such as above the entrances, storefront
opening, or other similar features. Signs shall not be located on non-articulated areas of a
building.
6.2 Please refer to the sign ordinance, Chapter 90 Section 90-295, of the City Code.
6.3 Shopping Centers shall have development sign criteria to ensure unified signage for all the
buildings.
Don't Do This:
This building has not planned for signage. The signs on
the building are to unified.
Do This:
��.
hawaiianta n
anzi MWI
This building has the location of the sign for each
tenant integrated into the overall design of the
building. This building has architecture that included a location
of a sign integrated into the overall design of the build-
ing.
7.0 S C I I,E E N I 1 TCF
7.1 The view of all roof top mechanical equipment and related utilities on buildings shall be
screened from view of adjacent properties. Screening may include parapet walls or other ar-
chitecturally integrated elements. Wood fencing or chain link with or without slats shall not be
used for screening. A cross-sectional drawing shall be provided that illustrates the sight lines
from the ground level and the elevation shall illustrate how the roof top mechanical equipment
will be screened.
7.2 Ground mechanical equipment shall be screened from adjacent properties by landscaping or
a screen wall shall be provided that is compatible with the architectural design of the principal
building. There shall be a mix of landscaping and it should be at a height to adequately
screen the equipment.
7.3 All exterior storage of material and equipment related to, located on, and used by any busi-
ness shall be stored within a building or fully screened from view of adjacent properties
7.4 Chain link fencing with or without slats is prohibited for any screening purposes.
Don't Do This:
This building has not screened the roof top mechanical
equipment. The parapet could have been raised to en-
sure the equipment would be screened.
Evergreen Equipment
Shrubs
Do This:
Deciduous Shrubs
Deciduous Perennials Evergreen
Shrubs Shrubs
O to
Equipment
Illustration of a mix of landscaping for an aerial view
This buildings parapet has been raised to screen the and an eye-level view to screen mechanical equipment
roof top mechanical equipment from view from any on the ground
property line.
A SCREENING
7.5 Trash enclosures are encouraged to be located inside a building or attached to the building.
All trash enclosures shall be screened from view of adjacent properties. Trash enclosures
shall be constructed of the same material as the principal building.
7.6 External loading and service docks shall also be screened from view when located adjacent
to residential development. This screening can be fencing, landscaping, or a combination of
both.
Don't Do This:
4
i b
This dumpster has not been screened from view There is no method of screening for the air conditioners
for this building.
Do This:
ins.
This building has an interior trash enclosure.
Both of these building have used architectural materials
for screen the dumpsters. These
enclosures match the building they serve.
8.0 FIGHTING
8.1 In addition to the light ordinance Section 90-239, all lighting for a development or building
shall be architecturally compatible with the development or building.
8.2 Lighting within parking lot shall include cut-off fixtures with the bulb recessed within the fix-
ture. An example is a shoe-box style lighting fixture. The light pole and fixture shall not be ad-
justable
8.3 Wall mounted lighting shall be used on building fronts to a illuminate entry points and archi-
tectural features.
Don't Do This:
This light is wall mounted and is not a downcast fixture
This light pole has an adjustable head and is not a with a recessed bulb.
downcast fixture.
Do This: �,
Both of these lights are good examples of wall mounted
This light pole is a downcast shoebox fixture with a re- fixtures.
cessed bulb. This is a good example of parking lot
lighting.
9.0 GUTTERS AND DOWNSPOUTS
9.1 Building devices used to control rainwater shall be compatible with the roofing system and
shall not dominate the fagade of the building. Internal roof drains are encouraged.
9.2 The gutters and downspouts shall be shown on the architectural plans.
9.3 The design shall be integrated with the design of the building.
9.4 Gutters and downspouts shall be constructed of high quality, commercial materials.
9.5 Gutters shall not be allowed on flat roofs
9.6 Downspouts shall only be allowed at interior corners. If there are no interior corners, then
downspouts will be allowed on the exterior corners. Downspouts shall not run down the
middle of the building.
9.7 Parapets and cornices shall be continuous above a scupper.
Don't Do This:
rY
The design of the gutters and downspouts run down
the middle of the buildings. The design has not been
integrated with the design of the building.
Do This:
The downspouts are on the exterior corners. The colors
match the building and have been integrated with the
overall design of the building.
10.0 INDUSTRIAL ZONING DISTRICTS
10.1 Industrial development shall be consistent with all design standards set in this guideline. Ex-
cept that Industrial development will be allowed to deviate from some of the design guidelines
as specified below.
10.2 The strict intent of four sided design is not applicable to all industrial buildings. The sides of
the buildings that are used for loading docks will be allowed flexibility on architecture. Build-
ings that do not have loading and service docks will also be allowed flexibility on architecture
on the back side of the building.
10.3 External loading and service docks shall be screened from view when located adjacent to
residential development. This screening can be fencing, landscaping, or a combination of
both. Chain link fencing with or without slats is prohibited for any screening purposes.
10.4 Although unique building design is encouraged, industrial buildings are allowed flexibility on
recessions and projections in building planes and height.
10.5 Industrial development will be allowed to use integrally colored tip up panels. These panels
will not be allowed to be painted and are encouraged to have an architectural detail, rather
than a flat design.
_:._
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II
I
This site plan and building elevation
includes the minimum standards for "
industrial buildings as outlined in the guidelines.
11.0 EXCEPTIONS
11.1 Properties that are used for commercial or industrial purposes without being served by mu-
nicipal sewer and water are exempt from these guidelines. Property owners may expand ex-
isting buildings without adhering to these design guidelines, provided that all other provisions
of the code can be met.
11.2 The City is aware of existing commercial and industrial uses in the City that do not have ac-
cess to City sewer and water. These areas have high potential to be redeveloped when City
sewer and water is available. The City would like to see these areas redeveloped in the fu-
ture.
11.2 The strict enforcement of the guidelines may hinder redevelopment of the properties in the
future. The construction of the existing buildings in these locations in most cases do not meet
these guidelines or the commercial and industrial construction standards. Requiring the prop-
erties to meet the guidelines and standards may reduce the probability of redevelopment.
11.3 The costs associated with meeting the guidelines and construction standards may not be
within reason until public sewer and water is available to the site. This can cause hardship on
the land owner because it would require the construction of a permanent building that would
likely be demolished at the time that sewer and water is extended to the property.
11.4 Any redevelopment of these properties that occurs in conjunction with municipal sewer and
water services shall comply with the design guidelines.
11.5 Additions to buildings shall be allowed to incorporate existing materials in the overall design
of the addition. The goal is to blend the addition with the existing building to ensure the archi-
tecture looks seamless and that the addition matches the building. An addition may include
prohibited materials as long as the existing building contains those materials.
i
Tax Abatement in Minnesota
Concepts and Mechanics
2011
Prepared by
Springsted Incorporated
Saint Paul, Minnesota
Minnesota Office Des Moines Office Richmond Office
Corporate Headquarters 300 Walnut Street
380 Jackson Street,Suite 300 Suite 215 1564 East Parham Road
St.Paul,MN 55101-2887 Des Moines,IA 50309-2258 Richmond,VA 23228-2360
651.223.3000 515.244.1358 804.726.9748
651.223.3002 Fax 515.244.1508 Fax 804.726.9752 Fax
Colorado Office Missouri Office Wisconsin Office
8400 E.Prentice Avenue 9229 Ward Parkway 1110 North Old World 3rd Street
Suite 104N
Suite 500 Kansas City,MO 64114-3311 Suite 218
Greenwood Village,CO 80111 8163337200 Milwaukee,WI 53203-1100
. .
303.893.5800 414.220.4250
303.771.1334 Fax 816.333.6899 Fax 414.220.4251 Fax
advisors@springsted.com www.springsted.com
i
Tax Abatement in Minnesota
Table of Contents
INTRODUCTION ....................................................................................... 1
PARTICIPANTS........................................................................................2
THE MECHANICS.....................................................................................3
Qualifications .................................................................................................3
Duration and Restrictions..................................................................................3
FiscalDisparities.............................................................................................4
Bondingand Levy Limits...................................................................................4
Process ........................................................................................................5
Review and Modification...................................................................................5
HOW DOES TAX ABATEMENT COMPARE TO TAX INCREMENT?....................6
G�SPRINGSTED
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Tax Abatement in Minnesota
Introduction
In 1997, legislation authorizing the use of tax abatement in Minnesota was
passed by the State legislature. Amendments to the statute were approved
nearly every year since authorization. The statutory language defining tax
abatement is quite brief and is contained in MN Statutes 469.1812 to
469.1815.
Section 469 refers to the capture or deferral of property taxes due as"tax
abatement." Under Minnesota law,taxes due on real property subject to
tax abatement must still be paid as due. If tax abatement is in place,the
appropriate portion of the taxes can be captured for development purposes.
Just what the appropriate portion is depends on which governmental
entities hold public hearings and adopt abatement resolutions. A
participating city,county,or school district is required to act separately to
determine the use of its share of property taxes.
Unlike tax increment,tax abatement can be used to capture taxes on land
and existing buildings as well as new improvements. The captured taxes
must be used to offset the costs agreed to under an abatement agreement.
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Tax Abatement in Minnesota
Participants
Abatement Participants
city Landowner/Developer
• Elected Officials • Landowner or Developer
• Advisory Commissions . Attorney
• City Staff
• Fiscal Consultant: Springsted
Incorporated
• Bond Counsel
Other Possible Participants
Abatement Parcel/Area Project
• County . Federal Government
• School District . State Government
Metropolitan Council, etc.
Other Municipalities Bordering Project
Area
'.J SPRINGSTED Page 2
Tax Abatement in Minnesota
The Mechanics))
Qualifications
Any political subdivision, including statutory cities, home rule charter
cities, towns, counties,and school districts, is authorized to abate property
taxes on selected parcels or defer the payments of the taxes and abate the
interest and penalty that otherwise would apply, if:
• The benefits gained equal or exceed the cost to the political
subdivision or the abatement phases in a property tax increase,
and
• The abatement is in the public interest because it will:
— increases or preserves the tax base;
— provides employment opportunities;
— provides or helps acquire or construct public facilities;
— helps redevelop or renew blighted areas;
— helps provide access to services;
— finances or provides for public infrastructure;
— phase in a property tax increase on the parcel resulting from an
increase of 50%or more in one year on the estimated market
value of the parcel,other than an increase due to improvement of
the parcel; or
— stabilize the tax base through equalization of property tax
revenues for a specified time period with respect to a taxpayer
whose real and personal property is subject to valuation under
Minnesota Rules, chapter 8100.
Duration and Restrictions
Cities, counties,and school districts as combined jurisdictions may grant
an abatement for no longer than 15 years(8 year maximum if no initial
duration is specified), or for no longer than 20 years if two or fewer
jurisdictions participate. However, individual jurisdictions may grant an
abatement for a period of up to 20 years, if the abatement is for a qualified
business meaning a taxpayer whose real and personal property is subject
to valuation under Minnesota Rules,chapter 8100.
No back-to-back abatements. Eight years must pass before a new
abatement can be applied.
In any given year,the total amount of property taxes abated by a political
subdivision for all parcels may not exceed therg_eater of(1) 10%of the
N SPRINGSTED Page 3
Tax Abatement in Minnesota
net tax capacity of the political subdivision for the taxes payable year to
which the abatement applies,or(2)$200,000.
The State will not reimburse school districts for lost taxes resulting from
abatement.
Taxes may be abated on the entire net tax capacity of a parcel including
land or areas subject to the areawide fiscal disparities tax.
Property in a tax increment financing district is not eligible for abatement.
Fiscal Disparities
In the Seven-County Metro Area and Taconite Tax Relief Area, where
the fiscal disparities program is applicable, the abatement may be
calculated from the net tax capacity either before or after the portion of
tax capacity subject to fiscal disparities sharing has been deducted. The
tax abatement law as originally enacted prohibited any abatement of the
fiscal disparities portion of the tax.
Bonding and Levy Limits
General Obligation bonds supported by tax abatements may be issued
without a referendum,and such debt does not count against the debt limit
of the subdivision.
Tax Abatement bond proceeds can be used to pay for public
improvements that benefit the property,acquire and convey land or other
property, reimburse property owner for cost of improvements to the
property, or pay costs of issuance of the bonds.
The maximum principal of bonds may not exceed the estimated sum of
the abatements for the property for the years authorized.
Tax abatements are not subject to levy limitations and are excluded from
the calculation of the net debt limit.
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Tax Abatement in Minnesota
Process
A political subdivision may grant an abatement only after a public
hearing has been held. Notice of the hearing must be published in a
newspaper of general circulation not less than 10 days or more than 30
days prior to the hearing. The notice must identify the property for
which abatement is under consideration and specify the total estimated
amount of property taxes to be abated.
The governing body must adopt a resolution specifying the terms of the
abatement. The resolution must also contain a statement as to the nature
and extent of the public benefits that are expected to be received.
The political subdivision must add to its levy amount for the current year
the total estimated amount of all current year abatements granted.
Review and Modification
The abatement resolution can provide that no review and modification is
permitted.
If resolution is silent, abatement may be reviewed and modified every
second year after it has been approved.
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Tax Abatement in Minnesota
How does Tax Abatement compare
to Tax Increment?
The following does not apply to tax abatement but is applicable to tax
increment:
• "But For"test
Existing tax base can be abated, a hearing and abatement resolution are
required,and maximum duration is 15 years or 20 years if two or fewer
jurisdictions participate or 20 years if the project qualifies.
Tax increment taxes captured do not include existing land and building
value,a hearing and tax increment plan are required, and maximum
duration varies.
G�SPRINGSTED Page 6