HomeMy WebLinkAbout2008.09.15 EDA Packet AGENDA
CITY OF HUGO
ECONOMIC DEVELOPMENT AUTHORITY
MONDAY, SEPTEMBER 15, 2008- 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 August 18,2008
8:35 am 4. Sertino's Cafe
• Mickey Michlitch, owner
9:00 am 5. Hugo Commons Consideration of TIF Agreement
9:30 am 6. Update on the BR& E Subcommittee
9:45 am 7. Update on EDA Marketing Work Plan and Promotional
Package
10:00 am 8. Update on Downtown Redevelopment
10:10 am 9. Update on Walker Elder Care Service Project
10:20 am 10. Update on Rental and Foreclosed Property
10:30 am 11. Update on Tuesday, October 7,2008 City Council
Candidacy Debate
BACKGROUND MEMO FOR THE EDA MEETING OF
MONDAY, SEPTEMBER 15 , 2008
3. Approval of Minutes for EDA meeting of August 18,2008
City staff recommends that the EDA approve the minutes for the August 18 2008 EDA
meeting as presented.
4. Sertino's Cafe
Staff has invited Mickey Michlitch, owner of Sertino's Cafe, to come to the EDA
meeting to talk about his new business in town. Staff recommends that the EDA welcome
Sertino's as a new business in Hugo.
5. Hugo Commons Consideration of TIF Agreement
Bill Lentsch and Dale Dockendorf(Development Partners Hugo LLC) have a purchase
agreement with the property owners of the former"End Zone" site. They have applied for
site plan approval and Tax Increment Financing (TIF). The EDA will be reviewing the
TIF Agreement at the meeting and staff will provide the EDA with an overview of the
agreement. Staff recommends approval of the TIF Agreement. Staff recommends that the
EDA provide the City Council with a recommendation on whether or not to approve the
agreement. The site plan and TIF Agreement will be on the City Council agenda for
consideration on Monday, September 15, 2008 at 7 pm.
6. Update on the BR& E Subcommittee
The BR&E Subcommittee has received a number of business profile questionnaires from
businesses in the City. There is a handful that would like to have a business case study or
market study completed on the business, which would be done by a group of college
students free of charge. The subcommittee also has a good idea from the business profiles
on what the first business workshop will be on. The first workshop is expected to be in
October. The subcommittee will be doing site visits to new and existing businesses to
thank them for being a part of Hugo and to find out if there is anything that the City can
help them with. Staff will provide an update on the progress of the committee at the
meeting.
7. Update on EDA Marketing Work Plan and Promotional Package
Enclosed is the EDA marketing spreadsheet outlining the items that have been completed
and on going items. The EDA should feel free to add any additional items to the
spreadsheet. Staff will update the EDA on the promotional package that went out to 90
development groups on the downtown redevelopment of Hugo.
8. Update on Downtown Redevelopment
Staff will update the EDA on the progress of downtown redevelopment projects.
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9. Update on Walker Elder Care Service Proiect
Walker Elder Care Services is proposing to construct a 206 unit independent and assisted
living senior housing facility in Forest Lake. The project has been approved by the Forest
Lake City Council. Attached is Forest Lake's staff report on the project. The City of
Forest Lake is using industrial revenue bonds to help finance the senior housing facility.
Each City has a limit for bonding revenue of$10 million. The City of Forest Lake has
asked the City of Hugo if they can use a portion of Hugo's bonding authority to help
finance the project. At the August meeting the EDA made a recommendation to the City
Council to allow the City of Forest Lake to use Hugo's bonding authority for this year.
Staff will update the EDA on the progress of the project.
10. Update on Rental and Foreclosed Property
Staff will update the EDA on the rental and foreclosed property presentations that are
being given to Home Owners Associations in the City.
11. Update on Tuesday, October 7,2008 Citv Council Candidacy Debate
The Citizen Newspaper and the League of Women Voters are putting on a candidacy
debate at City Hall on Tuesday, October 7, 2008. The EDA is invited to attend this
debate.
MINUTES FOR THE EDA MEETING OF AUGUST 18,2008
EDA President Fran Miron called the meeting to order at 8:30 am.
PRESENT: Jan Arcand, Jim Bever, Tom Denaway, Mike Granger, Phil Klein, Brian Thistle
and Fran Miron
ABSENT: None
CITY STAFF PRESENT: City Administrator Mike Ericson, Community Development
Director Bryan Bear, and Associate Planner Rachel Simone
APPROVAL OF MINUTES FOR THE EDA MEETING OF JULY 21, 2008
Denaway made motion, Klein seconded,to approve the minutes for the EDA meeting of July 21,
2008.
All aye. Motion carried.
WALKER ELDER CARE SERVICES
Walker Elder Care Services is proposing to construct a 206 unit independent and assisted
living senior housing facility in Forest Lake. The project has been approved by the Forest
Lake City Council. Attached is Forest Lake's staff report on the project. The City of Forest
Lake is using industrial revenue bonds to help finance the senior housing facility. Each City
has a limit for bonding revenue of$10 million. The City of Forest Lake has asked the City of
Hugo if they can use a portion of Hugo's bonding authority to help finance the project. Doug
Borglund and Chip Robinson from the City of Forest Lake were present at the meeting and
gave an overview of the project and request. Mary Ippel from Briggs and Morgan was also
present at the meeting. Staff recommended that the EDA make a recommendation to the City
Council on whether or not to allow the City of Forest Lake to use the City of Hugo's bonding
authority to help finance the senior housing facility.
Mary Ippel gave an overview of the project and stated that there is not a risk for the City of
Hugo to allow the City of Forest Lake to use Hugo's bonding authority for this year.
Washington County is also allowing Forest Lake to use a portion of their bonding authority
for the year.
Doug Borglund from the City of Forest Lake talked about the projects importance as Walker
is partnering with the Washington County HRA affordable housing project. He stated that it
will be servicing independent living to assisted living and that the project is a great way for
seniors to transition to different types of care.
Denaway made a motion, seconded by Klein to recommend to the City Council to allow the
City of Forest Lake to use the City of Hugo's bonding authority for the year.
All Aye. Motion Carried.
NORTHLAND PALLET COMPANY
Northland Pallet Company has purchased and is now running its business out of the old 84
Lumber building.Northland Pallet is a company that constructs pallets and recycles pallets
into mulch. The company moved from Minneapolis to Hugo. Mitch Martin from Northland
Pallet was not present at the meeting to talk about his business.
UPDATE ON BR&E SUBCOMMITTEE
The Associate Planner gave an update on the BR&E Subcommittee's progress. The business
profile questionnaires have gone out to the commercial and industrial property owners and
are being returned to the City. This is a way that the committee can get an idea of the
businesses that would like a case study done for their business and what workshops to
provide to the business community. The committee will be doing site visits to businesses in
Hugo.
DISCUSSION ON EDA MARKETING STRATEGY
In 2007 the EDA created a marketing strategy work plan. Staff went through the work plan
and discussed with the EDA what has been completed to date. The EDA would like a list of
items completed and items that are an ongoing priority.
There was discussion on creating an annual fall event. Granger suggested having a fall event
that would be located in the rural area of the City.
UPDATE ON DOWNTOWN REDEVELOPMENT
Staff updated the EDA on the progress of downtown redevelopment.
The redevelopment of the former end zone site will be back to the EDA in September for
review and approval of the TIF agreement.
Mike Anderson continues to work on the redevelopment of the Carpenters Restaurant Site
and plans to submit an application soon.
ADJOURNMENT
Granger made a motion, seconded by Denaway,to adjourn at 10:40 am.
DEVELOPMENT AGREEMENT
BY AND BETWEEN
THE CITY OF HUGO, MINNESOTA
AND
DEVELOPMENT PARTNERS HUGO LLC
This document drafted by: BRIGGS AND MORGAN
Professional Association
2200 First National Bank Building
St. Paul, Minnesota 55101
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TABLE OF CONTENTS
Page
ARTICLE I. DEFINITIONS ..................................................................................................1
Section1.1 Definitions.........................................................................................................1
ARTICLE 1I. REPRESENTATIONS AND WARRANTIES .................................................4
Section 2.1 Representations and Warranties of the City ......................................................4
Section 2.2 Representations and Warranties of the Developer.............................................4
ARTICLE III. UNDERTAKINGS BY DEVELOPER AND CITY.........................................6
Section 3.1 Project, Site Improvements and Legal and Administrative Expenses...............6
Section 3.2 Reimbursement: Tax Increment Revenue Note.................................................6
Section3.3 Upfront Fees......................................................................................................7
ARTICLE IV. EVENTS OF DEFAULT...................................................................................8
Section 4.1 Events of Default Defined.................................................................................8
Section 4.2 Remedies on Default..........................................................................................8
Section 4.3 No Remedy Exclusive.......................................................................................9
Section 4.4 No Implied Waiver............................................................................................9
Section 4.5 Agreement to Pay Attorney's Fees and Expenses.............................................9
Section 4.6 Indemnification of City......................................................................................9
ARTICLE V. DEVELOPER'S OPTION TO TERMINATE AGREEMENT.......................11
Section 5.1 The Developer's Option to Terminate.............................................................11
Section 5.2 Effect of Termination ......................................................................................11
ARTICLE VI. ADDITIONAL PROVISIONS........................................................................12
Section 6.1 Restrictions on Use..........................................................................................12
Section 6.2 Conflicts of Interest.........................................................................................12
Section 6.3 Titles of Articles and Sections.........................................................................12
Section 6.4 Notices and Demands......................................................................................12
Section 6.5 Counterparts.....................................................................................................12
Section6.6 Law Governing................................................................................................13
Section6.7 Expiration........................................................................................................13
Section 6.8 Provisions Surviving Rescission or Expiration...............................................13
Section 6.9 Assignability of Agreement and TIF Note ......................................................13
EXHIBIT A Description of Development Property...................................................................A-1
EXHIBIT B Form of TIF Note....................................................................................................B-1
EXHIBIT C Site Improvements..................................................................................................0-1
EXHIBIT D Construction Plans................................................................................................. D-1
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DEVELOPMENT AGREEMENT
THIS AGREEMENT, made as of the day of September, 2008, by and between the
City of Hugo, Minnesota (the "City"), a municipal corporation organized and existing under the
laws of the State of Minnesota and Development Partners Hugo LLC, a Minnesota limited
liability company (the "Developer").
WITNESSETH:
WHEREAS, pursuant to Minnesota Statutes, Section 469.124 through 469.134, the City
has formed Development District No. 1 (the "Development District") and has adopted a
development program therefor(the "Development Program"); and
WHEREAS, pursuant to the provisions of Minnesota Statutes, Section 469.174 through
469.1799, as amended (hereinafter, the "Tax Increment Act"), the City has created within the
Development District, Tax Increment Financing District No. 1-2 (the "Tax Increment District"),
and has adopted a tax increment financing plan therefor (the "Tax Increment Plan") which
provides for the use of tax increment financing in connection with certain development within
the Development District; and
WHEREAS, in order to achieve the objectives of the Development Program and
particularly to make the land in the Development District available for development by private
enterprise in conformance with the Development Program, the City has determined to assist the
Developer with the financing of certain costs of a Project (as hereinafter defined) to be
constructed within the Tax Increment District as more particularly set forth in this Agreement;
and
WHEREAS, the City believes that the development and construction of the Project, and
fulfillment of this Agreement are vital and are in the best interests of the City, the health, safety,
morals and welfare of residents of the City, and in accordance with the public purpose and
provisions of the applicable state and local laws and requirements under which the Project has
been undertaken and is being assisted; and
WHEREAS, the requirements of the Business Subsidy Law, Minnesota Statutes, Section
116J.993 through 116J.995, as amended, do not apply to this Agreement because the
Developer's investment in the purchase of the site and in site preparation is at least 70 percent of
the assessor's current year's estimated market value; and
NOW, THEREFORE, in consideration of the premises and the mutual obligations of the
parties hereto, each of them does hereby covenant and agree with the other as follows:
ARTICLE I.
DEFINITIONS
Section 1.1 Definitions. All capitalized terms used and not otherwise defined herein
shall have the following meanings unless a different meaning clearly appears from the context:
2212455v4
Agreement means this Development Agreement, as the same may be from time to time
modified, amended or supplemented;
Business Day means any day except a Saturday, Sunday or a legal holiday or a day on
which banking institutions in the City are authorized by law or executive order to close;
City means the City of Hugo, Minnesota;
County means Washington County, Minnesota;
Developer means Development Partners Hugo LLC, its successors and assigns;
Development District means the real property described in the Development Program for
Development District No. 1;
Development Program means the development program approved in connection with the
Development District;
Development Property means the real property legally described in Exhibit A attached to
this Agreement;
Event of Default means any of the events described in Section 4.1 hereof;
Legal and Administrative Expenses means the fees and expenses incurred by the City in
connection with the adoption and administration of the Tax Increment Financing Plan, the
preparation of this Agreement and the issuance of the Note;
Note Payment Date means August 1, 2011, and each February 1 and August 1 of each
year thereafter to and including February 1, 2021; provided, that if any such Note Payment Date
should not be a Business Day, the Note Payment Date shall be the next succeeding Business
Day;
Person means any individual, corporation, partnership, joint venture, association, joint
stock company, trust, unincorporated organization, or government or any agency or political
subdivision thereof;
Proiect means demolition of an existing building on the Development Property and the
construction on the Development Property of an approximately 23,000 square foot commercial
and retail facility;
Site Improvements means the site improvements to be undertaken on the Development
Property as identified on Exhibit C attached hereto;
State means the State of Minnesota;
Tax Increment Act means Minnesota Statutes, Sections 469.174 through 469.1799, as
amended;
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Tax Increment District means Tax Increment Financing District No. 1-2, located within
the Development District, which was qualified as a redevelopment district under the Tax
Increment Act;
Tax Increment Financing Plan means the tax increment financing plan approved for the
Tax Increment District by the City Council;
Tax Increments means 90% of the tax increments derived from the Development
Property, as determined by the City in its sole discretion, which have been received and retained
by the City in accordance with the provisions of Minnesota Statutes, Section 469.177, in an
amount not to exceed $25,230.50 in 2011 and an amount not to exceed $68,713.00 in any
calendar year thereafter;
Termination Date means the earlier of (i) February 1, 2021, (ii) the date the
Reimbursement Amount is paid in full, (iii) the date on which the Tax Increment District expires
or is otherwise terminated, or (iv) the date this Agreement is terminated or rescinded in
accordance with its terms;
TIF Note means the Tax Increment Revenue Note (Hugo Commons Project) to be
executed by the City and delivered to the Developer pursuant to Article III hereof, a copy of
which is attached hereto as Exhibit B; and
Unavoidable Delays means delays, outside the control of the party claiming its
occurrence, which are the direct result of strikes, other labor troubles, unusually severe or
prolonged bad weather, acts of God, fire or other casualty to the Project, delays in delivery of
materials for the construction of the Project, the soil conditions of the Development Property,
litigation commenced by third parties which, by injunction or other similar judicial action or by
the exercise of reasonable discretion, directly results in delays, or acts of any federal, state or
local governmental unit(other than the City) which directly result in delays.
2212455v4 3
ARTICLE II.
REPRESENTATIONS AND WARRANTIES
Section 2.1 Representations and Warranties of the City. The City makes the following
representations and warranties:
(1) The City is a municipal corporation and has the power to enter into this
Agreement and carry out its obligations hereunder.
(2) The Tax Increment District is a "redevelopment district" within the
meaning of Minnesota Statutes, Section 469.174, Subdivision 10, and was created, adopted and
approved in accordance with the terms of the Tax Increment Act.
(3) The development contemplated by this Agreement is in conformance with
the development objectives set forth in the Development Program.
(4) To finance certain costs within the Tax Increment District, the City
proposes, subject to the further provisions of this Agreement, to apply Tax Increments to
reimburse the Developer for the costs of the Site Improvements in connection with the Project as
further provided in this Agreement.
(5) The City makes no representation or warranty, either express or implied,
as to the Development Property or its condition or the soil conditions thereon, or that the
Development Property shall be suitable for the Developer's purposes or needs.
Section 2.2 Representations and Warranties of the Developer. The Developer makes
the following representations and warranties:
(1) The Developer is a Minnesota limited liability company, has power to
conduct business in Minnesota, to enter into this Agreement and to perform its obligations
hereunder and, by doing so, is not in violation of any provisions of its articles of organization,
member control agreement, operating agreement or the laws of the state of Minnesota.
(2) The construction of the Project would not be undertaken by the Developer,
and in the opinion of the Developer would not be economically feasible within the reasonably
foreseeable future, without the assistance and benefit to the Developer provided for in this
Agreement.
(3) Neither the execution and delivery of this Agreement, the consummation
of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and
conditions of this Agreement is prevented, limited by or conflicts with or results in a breach of,
the terms, conditions or provision of any contractual restriction, evidence of indebtedness,
agreement or instrument of whatever nature to which the Developer is now a party or by which
either of them is bound, or constitutes a default under any of the foregoing.
2212455v4 4
(4) The Developer will cooperate with the City with respect to any litigation
commenced with respect to the Project to the extent the City and the Developer are not adverse
parties in such litigation.
(5) The Developer will cooperate with the City in resolution of any traffic,
parking, trash removal or public safety problems which may arise in connection with the
construction of the Project.
(6) The County assessor estimates the current year estimated market value of
the Development Property to be $654,500. The Developer represents that the cost of site
preparation for the Development Property will be not less than $291,610 and the purchase price
for the Development Property was not less than $1,070,000. Based upon these estimates and
representations, the Developer represents that because the Developer's investment in the
purchase of the site and in site preparation for the Development Property will equal $981,610
($1,361,610 less $380,000) which is seventy percent (70%) or more of the County assessor's
current year's estimated market value of the Development Property, the Tax Abatement Program
described in this Agreement does not constitute a "business subsidy" and is not subject to the
Business Subsidy Law, Minnesota Statutes, Section 116J.993 through 116J.995.
2212455v4 5
ARTICLE 111.
UNDERTAKINGS BY DEVELOPER AND CITY
Section 3.1 Project, Site Improvements and Legal and Administrative Expenses.
(1) The Developer shall cause the Project to be constructed and installed in
accordance with the terms of this Agreement, the Development Program, the construction plans
dated , in substantially the form attached as Exhibit D and approved by Resolution No.
(the "Construction Plans") and all local, state and federal laws and regulations (including,
but not limited to, environmental, zoning, energy conservation, building code and public health
laws and regulations).
(2) The construction of the Project will commence on or after September 1,
2008 and, barring Unavoidable Delays, the Project will be substantially completed by December
31, 2009.
(3) The costs of the Site Improvements and the Project shall be paid by the
Developer. The City shall reimburse the Developer for the lesser of$380,000 or the costs of the
Site Improvements actually paid by the Developer (the "Reimbursement Amount") as further
provided in Section 3.2 hereof.
Section 3.2 Reimbursement: Tax Increment Revenue Note. The City shall reimburse
the Developer for the costs identified in Section 3.1 through the issuance of the City's TIF Note
in substantially the form attached to this Agreement as Exhibit B, subject to the following
conditions:
(1) The TIF Note shall be dated, issued and delivered when the Developer
shall have demonstrated in writing to the reasonable satisfaction of the City that the Developer
has completed the Project and incurred and paid the cost of Site Improvements, as described in
and limited by Section 3.1 and shall have submitted a closing statement, purchase agreement and
paid invoices for such costs in an amount not less than the Reimbursement Amount.
(2) The unpaid principal amount of the TIF Note shall bear annually
compounding interest from the date of issuance of the TIF Note, at 6.00% per annum. Interest
shall be computed on the basis of a 360 day year consisting of twelve (12) 30-day months.
(3) The principal amount of the TIF Note and the interest thereon shall be
payable solely from the Tax Increments.
(4) On each Note Payment Date and subject to the provisions of the TIF Note,
the City shall pay, against the principal and interest outstanding on the TIF Note, Tax Increments
received by the City during the preceding 6 months. All such payments shall be applied to
reduce the principal of and interest on the TIF Note. If, on any Note Payment Date, the Tax
Increments for the payment of the accrued and unpaid interest on the TIF Note are insufficient
for such purposes, the difference shall be carried forward, without interest accruing thereon, and
shall be paid if and to the extent that on a future Note Payment Date there are Tax Increments in
excess of the amounts needed to pay the accrued interest then due on the TIF Note.
2212455v4 6
(5) The TIF Note shall be a special and limited obligation of the City and not
a general obligation of the City, and only Tax Increments shall be used to pay the principal on
the TIF Note.
(6) The City's obligation to make payments on the TIF Note on any Note
Payment Date or any date thereafter shall be conditioned upon the requirement that there shall
not at that time be an Event of Default that has occurred and is continuing under this Agreement.
(7) The TIF Note shall be governed by and payable pursuant to the additional
terms thereof, as set forth in Exhibit B. In the event of any conflict between the terms of the TIF
Note and the terms of this Section 3.2, the terms of the TIF Note shall govern. The issuance of
the TIF Note pursuant and subject to the terms of this Agreement, and the taking by the City of
such additional actions as bond counsel for the TIF Note may require in connection therewith,
are hereby authorized and approved by the City.
Section 3.3 Upfront Fees. The City acknowledges the Developer has previously paid
the City a non-refundable application fee of$2,500. The Developer has deposited $10,000 with
the City to pay actual out of pocket Legal and Administrative Expenses and any excess will be
returned to the Developer after payment of all Legal and Administrative Expenses. If the City
determines the deposit to be inadequate, the Developer shall provide additional funds to be
escrowed.
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ARTICLE IV.
EVENTS OF DEFAULT
Section 4.1 Events of Default Defined. The following shall be "Events of Default"
under this Agreement and the term "Event of Default" shall mean whenever it is used in this
Agreement any one or more of the following events:
(a) Failure by the Developer to timely pay any ad valorem real property taxes
assessed with respect to the Development Property while such property is owned by
Developer.
(b) Failure by the Developer to cause the construction of the Project to be
completed pursuant to the terms, conditions and limitations of this Agreement.
(c) Failure of the Developer to observe or perform any other covenant,
condition, obligation or agreement on its part to be observed or performed under this
Agreement.
(d) If the Developer shall
(A) file any petition in bankruptcy or for any reorganization,
arrangement, composition, readjustment, liquidation, dissolution, or similar relief
under the United States Bankruptcy Act of 1978, as amended or under any similar
federal or state law; or
(B) make an assignment for the benefit of its creditors; or
(C) admit in writing its inability to pay its debts generally as they
become due; or
(D) be adjudicated as bankrupt or insolvent; or if a petition or answer
proposing the adjudication of the Developer, as a bankrupt or its reorganization
under any present or future federal bankruptcy act or any similar federal or state
law shall be filed in any court and such petition or answer shall not be discharged
or denied within sixty (60) days after the filing thereof, or a receiver, trustee or
liquidator of the Developer, or of the Project, or part thereof, shall be appointed in
any proceeding brought against the Developer, and shall not be discharged within
sixty (60) days after such appointment, or if the Developer, shall consent to or
acquiesce in such appointment.
Section 4.2 Remedies on Default. Whenever any Event of Default referred to in
Section 4.1 occurs and is continuing, the City, as specified below, may take any one or more of
the following actions after (i) the City has given written notice to the Developer citing with
specificity the item or items of default and (ii) the Developer has failed to cure such
noncompliance within thirty (30) days of the date of such notice; provided, however, that such
30 day cure period shall be extended for a reasonable period not longer than 180 days from the
date of such notice if(a) the default reasonably requires more than thirty (30) days to cure, (b)
2212455v4 8
the Developer promptly commences curing the default upon receipt of the notice of the default,
(c) the Developer thereafter continuously prosecutes curing the default with due diligence to
completion, (d) the Developer keeps the City well informed at all times of its progress in curing
the default, and (e) the cure is completed within such reasonable period of time:
(a) The City may suspend its performance under this Agreement and the TIF
Note until it receives assurances from the Developer, deemed adequate by the City, that
the Developer will cure its default and continue its performance under this Agreement,
and no interest shall accrue on the TIF Note while performance is suspended in
accordance with this Section 4.2.
(b) The City may cancel and rescind the Agreement and the TIF Note.
(c) The City may take any action, including legal or administrative action, in
law or equity, which may appear necessary or desirable to enforce performance and
observance of any obligation, agreement, or covenant of the Developer under this
Agreement.
Section 4.3 No Remedy Exclusive. No remedy herein conferred upon or reserved to
the City is intended to be exclusive of any other available remedy or remedies, but each and
every such remedy shall be cumulative and shall be in addition to every other remedy given
under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or
omission to exercise any right or power accruing upon any default shall impair any such right or
power or shall be construed to be a waiver thereof, but any such right and power may be
exercised from time to time and as often as may be deemed expedient.
Section 4.4 No Implied Waiver. In the event any agreement contained in this
Agreement should be breached by any party and thereafter waived by any other party, such
waiver shall be limited to the particular breach so waived and shall not be deemed to waive any
other concurrent, previous or subsequent breach hereunder.
Section 4.5 Agreement to Pay Attorney's Fees and Expenses. Whenever any Event of
Default occurs and the City shall employ attorneys or incur other expenses for the collection of
payments due or to become due or for the enforcement or performance or observance of any
obligation or agreement on the part of the Developer herein contained, the Developer agrees that
it shall, on demand therefor, pay to the City the reasonable fees of such attorneys and such other
expenses so incurred by the City.
Section 4.6 Indemnification of City.
(1) The Developer releases from and covenants and agrees that the City, its
governing body members, officers, agents, including the independent contractors, consultants
and legal counsel, servants and employees thereof (hereinafter, for purposes of this Section,
collectively the "Indemnified Parties") shall not be liable for and agree to indemnify and hold
harmless the Indemnified Parties against any loss or damage to property or any injury to or death
of any person occurring at or about or resulting from any defect in the Project, provided that the
foregoing indemnification shall not be effective for any actions of the Indemnified Parties that
are not contemplated by this Agreement.
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(2) Except for any willful misrepresentation or any willful or wanton
misconduct of the Indemnified Parties, the Developer agrees to protect and defend the
Indemnified Parties, now and forever, and further agrees to hold the aforesaid harmless from any
claim, demand, suit, action or other proceeding whatsoever by any person or entity whatsoever
arising or purportedly arising from the actions or inactions of the Developer (or if other persons
acting on its behalf or under its direction or control) under this Agreement, or the transactions
contemplated hereby or the acquisition, construction, installation, ownership, and operation of
the Project; provided, that this indemnification shall not apply to the warranties made or
obligations undertaken by the City in this Agreement or to any actions undertaken by the City
which are not contemplated by this Agreement.
(3) All covenants, stipulations, promises, agreements and obligations of the
City contained herein shall be deemed to be the covenants, stipulations, promises, agreements
and obligations of the City and not of any governing body member, officer, agent, servant or
employee of the City, as the case may be.
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ARTICLE V.
DEVELOPER'S OPTION TO TERMINATE AGREEMENT
Section 5.1 The Developer's Option to Terminate. This Agreement may be
terminated by the Developer, if(i) the Developer is in compliance with all material terms of this
Agreement and no Event of Default has occurred; and (ii) the City fails to comply with any
material term of this Agreement, and, after written notice by the Developer of such failure, the
City has failed to cure such noncompliance within ninety (90) days of receipt of such notice, or,
if such noncompliance cannot reasonably be cured by the City within ninety (90) days, of receipt
of such notice, the City has not provided assurances, reasonably satisfactory to the Developer,
that such noncompliance will be cured as soon as reasonably possible.
Section 5.2 Effect of Termination. If this Agreement is terminated pursuant to this
Article V, this Agreement shall be from such date forward null and void and of no further effect;
provided, however, the termination of this Agreement shall not affect the rights of either party to
institute any action, claim or demand for damages suffered as a result of breach or default of the
terms of this Agreement by the other party, or to recover amounts which had accrued and
become due and payable as of the date of such termination. Upon termination of this Agreement
pursuant to this Article V, the Developer shall be free to proceed with the Project at its own
expense and without regard to the provisions of this Agreement; provided, however, that the City
shall have no further obligations to the Developer with respect to reimbursement of the expenses
set forth in Section 3.2.
2212455v4 1 1
ARTICLE VI.
ADDITIONAL PROVISIONS
Section 6.1 Restrictions on Use. The Developer agrees for itself, its successors and
assigns and every successor in interest to the Development Property, or any part thereof, that the
Developer and its successors and assigns shall operate, or cause to be operated, the Project as a
commercial/retail facility and shall devote the Development Property to, and in accordance with,
the uses specified in this Agreement.
Section 6.2 Conflicts of Interest. No member of the governing body or other official
of the City shall have any financial interest, direct or indirect, in this Agreement, the
Development Property or the Project, or any contract, agreement or other transaction
contemplated to occur or be undertaken thereunder or with respect thereto, nor shall any such
member of the governing body or other official participate in any decision relating to the
Agreement which affects his or her personal interests or the interests of any corporation,
partnership or association in which he or she is directly or indirectly interested. No member,
official or employee of the City shall be personally liable to the City in the event of any default
or breach by the Developer or successor or on any obligations under the terms of this Agreement.
Section 6.3 Titles of Articles and Sections. Any titles of the several parts, articles and
sections of the Agreement are inserted for convenience of reference only and shall be
disregarded in construing or interpreting any of its provisions.
Section 6.4 Notices and Demands. Except as otherwise expressly provided in this
Agreement, a notice, demand or other communication under this Agreement by any party to any
other shall be sufficiently given or delivered if it is dispatched by registered or certified mail,
postage prepaid, return receipt requested, or delivered personally, and
(a) in the case of the Developer is addressed to or delivered personally to:
Development Partners Hugo LLC
2734 County Road D East
White Bear Lake, MN 55110
(b) in the case of the City is addressed to or delivered personally to the City
at:
City of Hugo, Minnesota
Hugo City Hall
14669 Fitzgerald Avenue North
Hugo, Minnesota 55038-9301
or at such other address with respect to any such party as that party may, from time to
time, designate in writing and forward to the other, as provided in this Section.
Section 6.5 Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall constitute one and the same instrument.
2212455v4 12
Section 6.6 Law Governing. This Agreement will be governed and construed in
accordance with the laws of the State.
Section 6.7 Expiration. This Agreement shall expire on the Termination Date.
Section 6.8 Provisions Surviving Rescission or Expiration. Sections 4.5 and 4.6 shall
survive any rescission, termination or expiration of this Agreement with respect to or arising out
of any event, occurrence or circumstance existing prior to the date thereof.
Section 6.9 Assignability of Agreement and TIF Note. The Developer shall not assign
its interest in this Agreement or the Note without the consent of the City, which consent shall not
be unreasonably withheld.
2212455v4 13
IN WITNESS WHEREOF, the City has caused this Agreement to be duly executed in its
name and on its behalf and its seal to be hereunto duly affixed, and the Developer has executed
this Agreement, on or as of the date first above written.
CITY OF HUGO, MINNESOTA
By
Its Mayor
By
Its Administrator
This is a signature page to the Development Agreement by and among the City of Hugo and
Development Partners Hugo LLC
2212455v4 S-I
DEVELOPMENT PARTNERS HUGO LLC
By
Its
This is a signature page to the Development Agreement by and among the City of Hugo and
Development Partners Hugo LLC
22124550 S-2
EXHIBIT A
Description of Development Property
The property located in the City of Hugo, Washington County, Minnesota with the following
parcel identification number:
PARCEL NO.
2212455v4 A-1
EXHIBIT B
Form of TIF Note
No. R-1 $
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF WASHINGTON
CITY OF HUGO
TAX INCREMENT REVENUE NOTE
(HUGO COMMONS PROJECT)
The City of Hugo, Minnesota (the "City"), hereby acknowledges itself to be indebted
and, for value received, hereby promises to pay the amounts hereinafter described (the "Payment
Amounts") to Development Partners Hugo LLC (the "Developer" or the "Registered Owner"),
but only in the manner, at the times, from the sources of revenue, and to the extent hereinafter
provided.
The principal amount of this Note shall equal from time to time the principal amount
stated above, as reduced to the extent that such principal installments shall have been paid in
whole or in part pursuant to the terms hereof; provided that the sum of the principal amount
listed above shall in no event exceed $380,000 as provided in that certain Development
Agreement, dated as of September , 2008 as the same may be amended from time to time
(the "Development Agreement"), by and among the City and the Developer. The unpaid
principal amount hereof shall bear annually compounding interest from the date of this Note at
the rate of six and no hundredths percent (6.00%) per annum. Interest shall be computed on the
basis of a 360 day year consisting of twelve (12) 30-day months.
The amounts due under this Note shall be payable on August 1, 2011, and on each
February 1 and August 1 thereafter to and including February 1, 2021, or, if the first should not
be a Business Day (as defined in the Development Agreement), the next succeeding Business
Day (the "Payment Dates"). On each Payment Date the City shall pay by check or draft mailed
to the person that was the Registered Owner of this Note at the close of the last business day of
the City preceding such Payment Date an amount equal to the Tax Increments (hereinafter
defined) received by the City during the six month period preceding such Payment Date. All
payments made by the City under this Note shall be applied to principal.
The Payment Amounts due hereon shall be payable solely from 90% of tax increments
from the Development Property, as determined by the City in its sole discretion, within the
City's Tax Increment Financing District No. 1-2 (the "Tax Increment District") within its
Development District No. 1 which are paid to the City and which the City is entitled to retain
pursuant to the provisions of Minnesota Statutes, Sections 469.174 through 469.1799, as the
same may be amended or supplemented from time to time (the "Tax Increment Act") in an
amount not to exceed $25,230.50 in 2011 and an amount not to exceed $68,713.00 in any
2212455v4 B-I
calendar year thereafter (the "Tax Increments"). This Note shall terminate and be of no further
force and effect following the last Payment Date defined above, on any date upon which the City
shall have terminated the Development Agreement under Section 4.2(b)thereof or the Developer
shall have terminated the Development Agreement under Article V thereof, the date the Tax
Increment District is terminated, or on the date that all principal payable hereunder shall have
been paid in full, whichever occurs earliest.
The Tax Increment District includes properties other than the Development Property and
Washington County remits Tax Increment to the City on the basis of the Captured Tax Capacity
of the entire Tax Increment District. For purposes of this Tax Increment Revenue Note, the City
will determine Tax Increment generated from the Development Property and improvements
thereon in its sole discretion.
The City makes no representation or covenant, express or implied, that the Tax
Increments will be sufficient to pay, in whole or in part, the amounts which are or may become
due and payable hereunder.
The City's payment obligations hereunder shall be further conditioned on the fact that no
Event of Default under the Development Agreement shall have occurred and be continuing at the
time payment is otherwise due hereunder, but such unpaid amounts shall become payable if said
Event of Default shall thereafter have been cured; and, further, if pursuant to the occurrence of
an Event of Default under the Development Agreement the City elects to cancel and rescind the
Development Agreement, the City shall have no further debt or obligation under this Note
whatsoever. Reference is hereby made to all of the provisions of the Development Agreement,
including without limitation Section 3.2 thereof, for a fuller statement of the rights and
obligations of the City to pay the principal of this Note, and said provisions are hereby
incorporated into this Note as though set out in full herein.
This Note is a special, limited revenue obligation and not a general obligation of the City
and is payable by the City only from the sources and subject to the qualifications stated or
referenced herein. This Note is not a general obligation of the City of Hugo, Minnesota, and
neither the full faith and credit nor the taxing powers of the City are pledged to the payment of
the principal of this Note and no property or other asset of the City, save and except the
above-referenced Tax Increments, is or shall be a source of payment of the City's obligations
hereunder.
This Note is issued by the City in aid of financing a project pursuant to and in full
conformity with the Constitution and laws of the State of Minnesota, including the Tax
Increment Act.
This Note may be assigned only with the consent of the City which consent shall not be
unreasonably withheld. In order to assign the Note, the assignee shall surrender the same to the
City either in exchange for a new fully registered note or for transfer of this Note on the
registration records for the Note maintained by the City. Each permitted assignee shall take this
Note subject to the foregoing conditions and subject to all provisions stated or referenced herein.
22124550 B-2
IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions, and things
required by the Constitution and laws of the State of Minnesota to be done, to have happened,
and to be performed precedent to and in the issuance of this Note have been done, have
happened, and have been performed in regular and due form, time, and manner as required by
law; and that this Note, together with all other indebtedness of the City outstanding on the date
hereof and on the date of its actual issuance and delivery, does not cause the indebtedness of the
City to exceed any constitutional or statutory limitation thereon.
zzizassva B-3
IN WITNESS WHEREOF, City of Hugo, Minnesota, by its City Council, has caused this
Note to be executed by the manual signatures of its Mayor and Administrator and has caused this
Note to be dated as of , 2008.
Administrator Mayor
2212455v4 B-4
CERTIFICATION OF REGISTRATION
It is hereby certified that the foregoing Note was registered in the name of Development
Partners Hugo LLC, and that, at the request of the Registered Owner of this Note, the
undersigned has this day registered the Note in the name of such Registered Owner, as indicated
in the registration blank below, on the books kept by the undersigned for such purposes.
NAME AND ADDRESS OF DATE OF SIGNATURE OF CITY
REGISTERED OWNER REGISTRATION ADMINISTRATOR
Development Partners Hugo LLC
2734 County Road D East
White Bear Lake, MN 55110
2212455v4 B-5
EXHIBIT C
Site Improvements
Demolition of existing building
Site Preparation
Landscaping, including irrigation
Foundations and Footings
Grading/earthwork
Engineering
Survey
Environmental Testing
Soil Borings
On Site Utilities
Storm Water/Ponding
Outdoor Lighting
Parking, Driveway and Sidewalk Improvements
2212455v4 C-1
3
Business Retention & Expansion Subcommittee '
City of Business Profile Questionnaire
11HUgo
Business Name Contact Person
Type of Business / �Ol? GZl
I Address
Number of Locations
Number of Employees Phone# 6 -�ZZZ V
Business Location G(� ,<d Email
What type of information would be useful in your business? (Circle or Check as many as needed)
Attorney Questions Finance General Computer Help
Website Design Help Incorporating ✓ Business Market Study
Business Case Study v Marketing ✓ Networking
Accounting Computer Information Systems (Microsoft Applications)
Other:
What are your thoughts about expanding your business' day to day operations?
Questions/Comments/Concerns
The business profile questionnaire will be confidential and will not be used for solicitation, the questions
are designed to gather information and focus efforts in the area of most need. Thank you for your
participation!
Please send finished business profile questionnaire to:
Hugo City Hall
Att: Rachel Simone
14669 Fitzgerald Ave N
Hugo, MN 55038
Business Retention & Expansion Subcommittee
City of Business Profile Questionnaire
d, Hugo
Business Name Pe, 6ty,-10 �'`' Contact Person
Type of Business Address 57 5- �_rc- /�2
Number of Locations
Number of Employees Phone# G'
Business Location Email
What type of information would be useful in your business? (Circle or Check as many as needed)
Attorney Questions --Finance General Computer Help
Website Design Help Incorporating Business Market Study
Business Case Study N�keting 'Networking
Accounting Computer Information Systems ( Microsoft Applications)
Other:
What are your thoughts about expanding your business' day to day operations?
Questions/Comments/Concerns
The business profile questionnaire will be confidential and will not be used for solicitation, the questions
are designed to gather information and focus efforts in the area of most need. Thank you for your
participation!
Please send finished business profile questionnaire to:
Hugo City Hall
Att: Rachel Simone
14669 Fitzgerald Ave N
Hugo, VIN 55038
Business Retention & Expansion Subcommittee
c'`y of Business Profile Questionnaire
4-'-'1ifHUg0
Business Name ��� SQA - _�., �r ..�._ ! /ln/"Contact Person - s'
Type of Business ��1.r'-�,° �,r Address
�e r
Number of Locations P{
Number of Employees - Phone#
Business Location S �� �` r Email
What type of information would be useful in your business? (Circle or Check as many as needed)
Attorney Questions i/Finance General Computer Help
Website Design Help Incorporating Business Market Study
Business Case Study Marketing;: Networking
Accounting Computer Information Systems ( Microsoft Applications)
Other:
What are your thoughts about expanding your business' day to day operations?
_ p
r � /_T �l..r' :_%tr cv.f. 7 .. s`.•:`�- � ... { da ��ej l � - 'C.
Questions/Comments/Concerns
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7�1 11611
The business profile questionnaire will be confidential and will not be used for solicitation, the questions
are designed to gather information and focus efforts in the area of most need. Thank you for your
participation!
Please send finished business profile questionnaire to:
Hugo City Hall
Att: Rachel Simone
14669 Fitzgerald Ave N
Hugo, MN 55038
Business Retention & Expansion Subcommittee
City of Business Profile Questionnaire
ug0
Business Name �u�,,c•eSContact Person S cc.77- WW4 ki
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Type of Business fc_c-,-t 7! Address
Number of Locations
Number of Employees �S' Phone 10 y' D-�
Business Location Wa' a /:7r-e 0�Email Sc, 77-� L-�-
What type of information would be useful in your business? (Circle or Check as many as needed)
Attorney Questions Finance General Computer Help
Website Design Help Incorporating Business Market Study
Business Case Study---,) Marketing Networking
Accounting Computer Information Systems ( Microsoft Applications)
Other:
What are your thoughts about expanding your business' day to day operations?
Questions/Comments/Concerns
The business profile questionnaire will be confidential and will not be used for solicitation, the questions
are designed to gather information and focus efforts in the area of most need. Thank you for your
participation!
Please send finished business profile questionnaire to:
Hugo City Hall
Att: Rachel Simone
14669 Fitzgerald Ave N
Hugo, MN 55038
�--AEON
Business Retention & Expansion Subcommittee
rlcit� "or Business Profile Questionnaire
yU O
Business Name Ap" Contact Person Jv /7
Type of Business C /ct Address
Number of Locations j
Number of Employees % `7� Phone# SSS S'3 2-
Business Location 6-3 Email
What type of information would be useful in your business? (Circle or Check as many as needed)
Attorney Questions Finan. General Computer Help
Website Design Help Incorporating Business Market Study
-Business Case Study Marketing Networking
Accounting Computer Information Systems ( Microsoft Applications)
Other:
What are your thoughts about expanding your business' day to day operations?
qtr e � o ctf�rac-74 �� e `J�rs:h ss �- /34
Questions/Comments/Concerns
The business profile questionnaire will be confidential and will not be used for solicitation, the questions
are designed to gather information and focus efforts in the area of most need. Thank you for your
participation!
Please send Finished business profile questionnaire to:
Hugo City Hall
Att: Rachel Simone
14669 Fitzgerald Ave N
Hugo, MN 55038
Rachel
From: Please Do Not Click Reply(support@govoffice.coml
Sent: Monday, August 18, 2008 9:28 AM
To: Rachel
Subject: Business Profile Questionnaire (form) has been filled out on your site.
Your Site has received new information through an online form.
Online Form: Business Profile Questionnaire Site URL: www.ci.hugo.mn.us
-------------------------------------------------
Business Name: Western Spring Manufacturing Type of Business: Manufacturer Business
Location: Hugo Number of Locations: 1 Number of Employees: 12 Contact Person: Alex
Altstatt Contact Address: 5118 130th St. N.
City, State, Zip: Hugo, MN 55038
Contact Phone: (651) 224-1721
Email: alex@westernspring.com
What are your thoughts about expanding your business' day to day operations?: Having the
ability to to manufacture more product more efficiently than yesterday.
Questions/Comments/Concerns: We are implementing a new MIS that should make our business
more efficient and set the stage for future growth.
This person selected the following option(s) .
-General Computer Help
-Accounting
Do Not Click Reply - This e-mail has been generated from an online form.
1
lifHBusiness Retention & Expansion Subcommittee
City of Business Profile Questionnaire
ugo
Business Name Contact Person 10fi ave 1�)tobcntz,%
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Type of Business -W A) B LAST/ti6 -(--/,4//v7-//"Address S 8 S 8� ISW"' ST N O
Number of Locations Ha(2 D
Number of Employees a2 7 Phone# 6�5/- "y617- S ,7 00
Business Location 566 ,g-QVW-G,SS Email
What type of information would be useful in your business? (Circle or Check as many as needed)
Attorney Questions Finance General Computer Help
Website Design Help Incorporating Business Market Study
Business Case Study Marketing Networking
Accounting Computer Information Systems ( Microsoft Applications)
Other: ESS �XE-S
What are your thoughts about expanding your business' day to day operations?
GVC- 15�Af& //U 7P6 �' oCGSS
Questions/Comments/Concerns
The business profile questionnaire will be confidential and will not be used for solicitation, the questions
are designed to gather information and focus efforts in the area of most need. Thank you for your
participation!
Please send finished business profile questionnaire to:
Hugo City Hall
Att: Rachel Simone
14669 Fitzgerald Ave N
Hugo, MN 55038
Business Retention & Expansion Subcommittee
Hc'`"or Business Profile Questionnaire
ugo
Business Name MA COfLn4m RL40 �X�i�', (-CSC, Contact Person ac,-J fin J. cu-r-/30 r1
Type of Business ACJ,,4-o r Address -5-j:5 i I '-�n f h 5+ . MO
Number of Locations GO �n SSU
Number of Employees Phone# 389 9
Business Location �4LJ-�0 Email nC 20Llcn `x W-D
What type of information would be useful in your business? (Circle or Check as many as needed)
Attorney Questions Finance General Computer Help
Website Design Help Incorporating Business Market Study
Business Case Study Marketing Networking
Accounting Computer Information Systems ( Microsoft Applications)
Other:
What are your thoughts about expanding your business' day to day operations?
N c e ctct(�
Questions/Comments/Concerns
The business profile questionnaire will be confidential and will not be used for solicitation, the questions
are designed to gather information and focus efforts in the area of most need. Thank you for your
participation!
Please send finished business profile questionnaire to:
Hugo City Hall
Att: Rachel Simone
14669 Fitzgerald Ave N
Hugo, MN 55038
• �5
Business Retention & Expansion Subcommittee
c;cv or Business Profile Questionnaire
ugo
Business Name f N�'�l�v �¢ �. AwOeAntact Person ?!y
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Number of Locations !
Number of Employees Phone# G S/ q6 4-f—J 7 2 J
Business Location Email!L� a c, (--L )�77t N)
What type of information would be useful in your business? (Circle or Check as many as needed)
Attorney Questions �, Finance General Computer Help
Website Design Help Incorporating Business Market Study
Business Case Study Marketing Networking
Accounting Computer Information Systems ( Microsoft Applications)
Other:
What are your thoughts about expanding your business' day to day operations?
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Questions/Comments/Concerns
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The business profile questionnaire will be confidential and will not be used for solicitation, the questions
are designed to gather information and focus efforts in the area of most need. Thank yon for your
participation!
Please send finished business profile questionnaire to:
Hugo City Hall
Att: Rachel Simone
14669 Fitzgerald Ave N
Hugo, MN 55038
4 �--' Business Retention & Expansion Subcommittee
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What type of information would be useful in your business? (Circle or Check as many as needed)
Attorney Questions Finance General Computer Help
Website Design Help Incorporating Business Market Study
Business Case Study Marketing Networking
Accounting Computer Information Systems( Microsoft Applications)
Other:
What are your thoughts about expanding your business' day to day operations?
Questions/Comments/Concerns
The business profile questionnaire will be confidential and will not be used for solicitation, the questions
are designed to gather information and focus efforts in the area of most need. Thank you for your
participation!
Please send finished business profile questionnaire to:
Hugo City Hall
Att: Rachel Simone
14669 Fitzgerald Ave N
Hugo, MN 5 038
I I
~ - Business Retention & Expansion Subcommittee
'`'or-A' -ifHug0 Business Profile Questionnaire
Business Name P* - P)cck-f Set(&SS Contact Person Cc vi i
Type of Business Al c�c A t li-w y gect/�r Address Z PO Z ?-�L, A L.,
Number of Locations _3 ,�f �-e 0026//1 /Wj y(�(
Number of Employees 6 tU 4 0 5 Phone/* Z70 -- r
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What type of information would be useful in your business? (Circle or Check as many as needed)
Attorney Questions Finance General Computer Help
Website Design Help Incorporating Business Market Study
Business Case Study Marketing Networking
o
Accounting Computer Information Systems ( Microsoft Applications)
Other:
What are your thoughts about expanding your business' day to day operations?
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Questions/Comments/Concerns
))PJ to AhULL) 6 lel)m Lo di 3-
The business profile questionnaire will be confidential and will not be used for solicitation, the questions
are designed to gather information and focus efforts in the area of most need. Thank you for your
participation!
Please send finished business profile questionnaire to:
Hugo City Hall
Att: Rachel Simone
14669 Fitzgerald Ave N
Hugo, MN 55038
Business Retention & Expansion Subcommittee
c;t,orlif' Hugo Business Profile Questionnaire
Business Name LtLLD' S-bdhtact Person Withe.
Type of Business E'T 10h C2 Address 1-}15t'0 aT I31 Vd8020
�
Number of Locations rl Mcr), rnN 55038
Number of Employees Phone#
Business Location Email
What type of information would be useful in your business? (Circle or Check as many as needed)
Attorney Questions Finance General Computer Help
Website Design Help Incorporating Business Market Study
Business Case Study Marketing Networking
Accounting Computer Information Systems( Microsoft Applications)
Other:
What are your thoughts about expanding your business' day to day operations?
Questions/Comments/Concerns
The business profile questionnaire will be confidential and will not be used for solicitation, the questions
are designed to gather information and focus efforts in the area of most need. Thank you for your
participation!
Please send finished business profile questionnaire to:
Hugo City Hall
Att: Rachel Simone
14669 Fitzgerald Ave N
Hugo, MN 55038
EDA Marketing Strategy Outline
Marketing Strategy Strategies to accomplish the Date for
Goals Goals Completion
City Website Commercial/Industrial vacant land
search Completed
The EDA's own section of the
City website for promotion of the Completed
EDA
Keep residents and developers
informed on what the EDA is Completed
working on
Pictures of current development,
what is coming, and of vacant land Completed
available (before and after
pictures)
Work closely with the HBA Completed
Welcome to Hugo Banners/hanging baskets for street
lights Completed
Welcoming entry monument signs On going
into Hugo
Continue giving "Welcome to On going
Hugo" bags to new home owners
Downtown Development Inform property owners of TIF Will be done when
District approval. TIF District is
Certified
Work with possible developers
property owners of downtown On going
Hugo
Discussion on what is needed and
desired for the downtown On going
Market City owned property Completed
• Website
• Publications
Events/Business Kidz n' Biz Fest
Promotion Activities
Good Neighbor Days
Out reach to businesses
• Participation at HBA
Meetings
All on going projects
Continue inviting business owners
to EDA meetings
Tours of businesses
Define and distinguish roles of the
EDA and HBA
Cable Access Show
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Keenan
hes I Williams, 4, of
y y Burnsville,
"I"' at small-town charm elud
searches for
snacks while
it
Playing at Nicol-
suburbs attempts to buildlet Commons
� .':' '`' �... Park last week in
front of a new
Grand projects can leave only controversy and empty storefronts M .. city-funded per-
forming arts cen-
ter. Keenan and
rt r
By Bob Shaw Sunday's story:The secrets to — is trying to create or preserve his mother,
4
bshaw@pioneerpress.cow re-creating a small-town feel. small-town chailnn through various �� , , �4 , ; Amber Barger,
twincities.com projects. In city after city, officials visit the
Elwood Narum trudged through say their residents want it as an Burnsville park
Asa,. ..,.
Heart of the City, checking fora antidote to their soulless gauge-
two to three
pulse. "This is riot what I call small- door neighborhoods, times a week.
He paced the flower-lined side- town charm," said Narum, leader But it's devilishly difficult to The area is pret-
walks--empty of pedestrians.He of a group opposing a city-financed build. x•, . ty, Barger said,
peered into dark storefronts, arts center in the flagging project. Creating small-town charm — but it doesn't
vacant after six years. He shook The lack of street life is not from without having a small town — have small-tuwn
his head at a "Space for Lease" lack of trying. Burnsville — like charm.
sign. more than a dozen metro suburbs SMALL-TOWN CHARM,SA> PIONEER PRESS:SHERRI LAROSE-CHIGLO
kA
rn dent - lay/
ta control,
moqgage .
W.,
bA, ncm' oths L-/" .A1'11,',."_
Shaky Fannie, Freddie cover
After a bizarre offseason sideshow,
half of U.S. horne debt
�ta K the Packers face the Vikings tonight
By Tom Petrur➢o without their legendary quarterback.
art � x y ted natulally," Luhoccurr
nears persuading upeoPle to
said. "The shops that went
gather where e they tiicirr't coir- y` v
r there appealed tti shoppers.
gregate naturally before. The ? r• °' t became a destination."
standard recipe is to combine
small shops, apartments and #., f 5SPLIT BY A FOUR-LANE
parks in a pedestrian-friendly
way Loher experienced anoth
But its easier to build a walk a s drawback firsthand, as sl
able area than to get people to scooted across Nicoll
walls there. In some suburbs, Avenue to avoid an oncoadi
I the promise of re-creating
small-town life is as empty as The Heart of the City is sp
the sidewalks. >: by a busy foul•-lane thoroug
i "'Those places can be attrac fare.
uv»
Live.But if there is charm it is � � � "I don't perceive this to l
faux charm," said Kurt IIeg r 9 pedestrian-fr•icndly, she sak
land,president of a group that i<. She said there never will l
iomotes White Bear Lake's
p r • enough unique morn-Arid-pt
historic downtown. "It is not stores to Tule shoppers aw:
the same we-have-lived-here- a , from the,malls
for-100-years kind of char Inas t • There is a flower gift sho
The projects also can be „� a Y Can 1 told the same mei cha
expensive -- and controver n ; a *.. .= 1,'; dise elsewhere?"Lolier Fiske
i sial. N„ ._ f 1 Pointing across the st'r'eet,sY
Burnsville is spending
aid, Yes, there is' ice erear
s
$30 million on a new perform .z:a.. but is that enough of a draw!
ing arts center to jump-start
,y Nar'uin pointed out a vacw
pedestrian traffic and small ;�
�' �, � bank building on Nicollet. "
businesses in the Heart of the y moved to the real heart of tl
( City -- after foul' developers PIONEER PRESS PHOTOS:SHERRI LAROSE-CHIGLO � � city," the retail district e
backed away from the plan. In an effort to create the small-town center it lacked, highway 42,Narum said
The move has triggered an Burnsville spawned the Heart of the City development,a$400 a� Narurn acid Loher walke
organized effort to oust the million project that would include apartments,shops,a hotel, a kz' through Nicollet Coinmor
j officials who approved it. park and a performing arts center. Go to twincities.cotn to seePalk, where mothers and tot
I "It won't work," said Vickie more photos. Elwood Narum, left, and Vickie Loher are members of a tilers cavorted in the waterfe;
Lolrer;an ally of Narum's who group that opposes Burnsville's Heart of the City.Standing in fur-e. They sidestepped tl:
f walked with hint through the town charm was absolutely and then backed out.They said front of a large space that has never been rented in the pro- spray as one kid squirte
project. Although officials say the whole idea. the same thing—the site and jest's cornerstone, the Grande Market Place,they say the plan water from the mouth of
they are in the process of ere- At that time, Ed Delmoro the market would not support is fatally flawed and that chasing charm is a waste of money. frog-fountain at his friends.
ating old-fashioned charm in a argued that the small-towel- the projects. They stopped beside Reny.
modern age, they have failed, style meeting place would The project's cornerstone, $30 million to build it them- long string of warnings. Hagan, who said site In
Loher said counterbalance the isolation of the Grande Market Place,was selves. "It's clear businesses do not brought her children to tl
j "No one wants to give them suburban life. completed in 2002.It has sever- That's a small price to pay, thins they can make a profit— park 20 times since moving 4
the bad news. It's like the "Do you want just a place to al occupants, including one say supporters,for the region- or they would have been Burnsville in July.
emperor's new clothes," she drive to,open the garage door restaurant,but other high-pro- al magnet they are certain will there," said Charlie Crichton, "I love this,"she said"I Iov
said and watch TV?"said Delmoro, We restaurant spaces have spawn foot traffic,restaurants the only City Council member Burnsville."
a retired marketing executive. remained empty for six years. and small shops. who opposed the project from But slid she support the bus
REINFORCE "Hanging baskets are just The unique shops have been "You don't build that as a the start. "I don't see the tresses?To her;it seemed til+
WHAT'S LEFT ambience.Chapin is the people slow to move in.Some,like the profit center but as a catalyst," charm." an odd question. "Only Car
getting together." Day Spa If, opened and then Delmoro said. "'They put their own judg- bou Coffee and the nail salon
Sometimes, suburbs build Supporters cited success sto- closed. City Council Member Dan went ahead of the private sec- Hagan said.
modern small-town centers ries,including 50th and France Supporters insist the project Gustafson said the Heart of the for.The Heart of the City is an Next to her,Amber Barger;t
around the smallest scraps of in Edina and Excelsior & is on the verge of a turn- City is"absolutely a success." absolute disaster" said Gene Burnsville,laughed at her sU
their pasts. Grand in St.Lotus Park. around. It is a temporary victim of a Happe, a developer who has sliding in a man-made strean
Otte example is Lake Elmo, The task force spawned the Nicollet Commons Park is national recession, he said. built 45 commercial buildings Having grown up in an Iovv
which doesn't have much real Heart of the City—a$400 nail- thriving,visited by 40,000 peo- "Otherwise, all those empty in Burnsville. town of 4,000, she consider
f history left—only a handful of lion project with a 500-room ple each year, mostly for the storefronts would worry etre," "Everyone in Heart of the herself an authority on snud
businesses spread over two hotel, park, performing arts special events and concerts.It he said. City is near bankruptcy," town charm.
blocks. center;shops and apartments. sits next to the site of a restau- Happe said,rattling off names "I like this park. It's pretty
But suburban planner Bob bbl'orn the beginning, busi- rant under construction, the 'DON'T TOUCH IT' of condo builders and busi- she said."But it does not hav
Engstrom wanted to replicate nesses didn't seem to cooper- Mediterranean Cruise Cafe. nesses. "My advice to anyone small-town charm."
y the small-tower feel.So his Old ate. And city officials have aban- Critics of the Burnsville proj- else about small-towel charm
Village plan would add as four developers came to doned efforts to get a private ect say officials are blinded by is:Don't touch it." Bob Shaw can be reached of
t marry as 1,600 new homes Burnsville,promised to build a developer to build the perform- nostalgia and have ignored a The plan,critics say,is fatally 651-228-5433.
around the historic downtown, hotel complex with the center ing arts center,opting to spend
along with strops,parks, side- a#rr^ t
walks and—he says—some ti e t x v
Of the charm of the original. Donate \/�U Jeremiah,sh to gbia Heights
` the small-town charm rs i Iito oto �
Walt Disney World"
not gone forever.What is thele to benefit the Make-A-Wish Foundation"of Minnesota
can be reinforced," Engstrom Share The Power of a Wish®
said. CALL 651-251-7662
Rosemount only has two his- (7days a week)
r
toric buildings left in its down-
town.Yet the city has lawlched "Free vehicles pick up i
•We accept all vehicles-running or not
a revitalization project with a .we also escape.Boats and RVs
110 unit apartment complex, `
parking and space for small , '
shops. Nt L'`�,.M�. I,SH,,
Flowerpots hang from light
poles, beckoning pedestrians www.wheeisforwishes.org,
who have not yet arrived.
Mayor Bill Droste hopes a 1 1 1 1
library opening next year will
be the catalyst that pulls
pedestrians and small bust '? +�
ness into historic Rosemount. Is io u r w..
How can a city tell if a revival r
�.
of small-town charm is hope-
lessn
'? Furnace Old
"When you are in the noddle
of a cornfield trying to build a
quaint downtown," Droste i� l its
said."A lot of people would be �suspicious." p p But Not Broken? � � I 4
COUNTERBALANCE Horne Energy Center is looking for CenterPoint or Xcel Energyh
TO ISOLATION customers who: 1)are thinking about replacing their old furnace
or 2)want central air conditioning.You will receive up to$2,500
In 1994, Burnsville started for participating in this program.Call for details.
not with a cornfield but a
seedy 54-acre patch of dying You will receive: To qualify you must:
businesses.There were no his- •Up to$400 cash from utilities •Be a CenterPoint Energy or Xcel
toric buildings, no trees, no •Up to$500 cash on selected •Energy residential customer
parks. models •Reside in our service area
The city already had one of •Up to$600 guaranteed energy .install a qualifying model
•
the state's largest business cen- savings •Arrange for an immediate
tern a cluster of conventional •up to$1000 installation savings
malls along Dakota County 100%financing with 0 down and installation
Highway 42. But a task force low tauntlily ter,6oac
convened to create something ���
special -- a centralized meet- Call today GIVE All D RECEIVE AT T f 1E SAM.E "T'I M E.
ing area with small shops,
parks,flowers and trees. 763-476-199u
It wasn't some politician
doing this," city spokesman
Jinn Skelly said -- it was the
resideIlts of the city. "Small- Home Energy Center isnot related to any energy provider _........ _.._