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HomeMy WebLinkAbout2010.06.14 EDA Packet AGENDA CITY OF HUGO ECONOMIC DEVELOPMENT AUTHORITY MONDAY, JUNE 14, 2010 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 May 10, 2010 8:35 am 4. Discussion on Purchase Agreement for the City Owned Properties in Downtown 9:00 am 5. Update on BR&E Program Downtown Project Team 10:00 am 6. Update on Downtown Redevelopment • Antique Store • End Zone 10:15 am 7. Update on National Recycling Inc. (NRI) 10:30 am 8. Update on Business Networking Breakfast • June 15, 2010 at 7:30 am—Hugo City Hall 10:30 am 9. Adjournment BACKGROUND MEMO FOR THE EDA MEETING OF MONDAY, JUNE 149 2010 3. APPROVAL OF MINUTES Staff recommends approval of the minutes from the April 12, 2010 EDA Meeting as presented. 4. DISCUSSION ON PURCHASE AGREEMENT FOR THE CITY OWNED PROPERTIES IN DOWNTOWN Over the past couple month's staff has been working with Mark Finnemann, Richard Fischer, and Mike Brass on a purchase agreement for the City Owned property in the downtown. Staff will make a presentation on the purchase agreement details. The agreement is also in the packet for the EDA's review. Staff recommends that the EDA make a recommendation to the City Council to approve the purchase agreement with the development team. 5. UPDATE ON BR&E PROGRAM DOWNTOWN PROJECT TEAM The Downtown Project Team is one of the subcommittees that came out of the BR&E program. They have completed their action plan which is included in the packet for the EDA to review. 6. UPDATE ON DOWNTOWN REDEVELOPMENT Staff will update the EDA on the progress of downtown redevelopment. 7. UPDATE ON NATIONAL RECYCLING INC. (NRI) The City has received several complaints on NRI regarding the amount of metal stored on the property and the traffic problems the business has caused. The business is located on Highway 61 south of 165th Street. Staff is investigated the complaints and has informed the property owner that it is an illegal nonconforming use, which means the use is not allowed in the zoning district. Staff has since met with the property owner on how to resolve the issues with the complaints and the illegal use. Staff will update the EDA on the outcome of the meeting. 8. UPDATE ON BUSINESS NETWORKING BREAKFAST The Hugo EDA, Hugo Business Association(HBA), and Business Networking International of Hugo are hosting a business networking breakfast on June 15, 2010 from 7:30—9:00 am. The EDA is invited to attend this event. MINUTES FOR THE EDA MEETING OF MAY 10, 2010 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 Planner, Rachel Simone. APPROVAL OF MINUTES FOR THE EDA MEETING OF APRIL 12, 2010 Denaway made motion, Bever seconded, to approve the minutes for the EDA meeting of April 12, 2010. All ayes. Motion carried. HEALTH SOURCE CHIROPRACTIC Staff invited Dr. Erik Carlson from Health Source Chiropractic to the EDA meeting as a new business in Hugo. The business is located in the Victor Gardens South Village retail building. Dr. Carlson stated that their official grand opening would be this June or July. He attended the Hugo Kidz n' Biz Fest and the Spring Savings Show. He stated that community events are important to his business and thanked the City for supporting the events. He is planning on joining the Hugo Business Association. He stated that he wanted to move the business to Hugo because of the growing population and good demographics. The EDA welcome Health Source Chiropractic as a new business in Hugo. DISCUSSION ON BR&E IMPLEMENTATION PROJECTS AND EDA GOALS There were four implementation projects that came out of the BR&E Program. 1. Market the City and Businesses 2. Create, Coordinate and Encourage Events to have Economic Impact 3. Improve Downtown (including Hwy 61 Access) 4. Host Business and Breakfast Workshops Staff discussed the implementation projects with the EDA in regards to the 2010 EDA goals. The EDA stated that staff should work with the HBA and encourage them to be a part of the project teams. Klein made a motion, seconded by Denaway, to make a recommendation to the City Council to formally create each project team as a subcommittee of the EDA. All aye. Motion carried. Granger talked about a community message board to help promote business and events. UPDATE ON DOWNTOWN REDEVELOPMENT Staff updated the EDA on the progress of downtown redevelopment. The CD Director stated that staff has been talking to the Anderson's that own the antique store property about an assessment agreement for demolition of the building. It does not appear that they will sign the agreement. The EDA generally agreed that the building should come down and that it is a hazard because if its condition. Miron asked if the building need to come down in order to building the turn lane with the Highway 61 improvement project. Bryan stated that we needed the right of way to complete the work. The CD Director stated that staff will be sending letters to the property owners of the End Zone building and the Ricci's building to offer them an assessment agreement with the City to demolish the buildings. Denaway made a motion, seconded by Granger, to contact the property owners by letter and set up a meeting with them to discuss. All aye. Motion Carried. Granger made a motion, seconded by Klein, to make a recommendation to the City Council to consider holding a hearing on the demolition of the antique store. All aye. Motion Carried. The CD Director updated the EDA on the road construction in the City along Highway 61. REPORT ON HUGO BUSINESS ASSOCIATION SPRING SAVINGS SHOW Staff updated the EDA on the Spring Saving Show held on May 8, 2010. The City Administrator stated that there was a good attendance of vendors and visitors. ADJOURNMENT Granger made a motion, seconded by Denaway, to adjourn at 10:33 am. All Aye. Motion Carried. 5.19.(o Draft PURCHASE AGREEMENT THIS PURCHASE AGREEMENT ("Agreement") is made effective as of the day of , 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 Deal 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. J. 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 Ileal 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). 5.19.10 Draft ' 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 61. 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 t, 201 t (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.t Deed. A Limited Warranty Deed conveying to Buyer a vendee's interest in the Property in the form attached hereto as Exhibit C. 5.l.2 F[RPTA Affidavit. A non-foreign affidavit, properly executed, containing such information as is required by Internal Revenue Code Section 1445(b)(2) and its regulations. -2- 5.l 9.10 Draft 5.l.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. § 1031 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 fiends. 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 Taxes 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. -3- 5.19.10 Draft 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 Nlinimum 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 by Seller. 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 EIRPTA. 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. -4- x.19.10 Draft 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. "Che Seller certifies and warrants that the Seller does not know of any "Wells" on the Land within the meaning of Minn. Stat. § 1031. "Chis 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. Assignment. 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- 5.19.10 Draft 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 55 l 16 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. IN WITNESS WHEREOF, Setter and Buyer have executed this Agreement effective as of the Effective Date. -6- 5.19.10 Draft Date of Signature SELLER: 12010 THE CITY OF HUGO (a Minnesota municipal corporation) By Its: Date of Signature BUYER: 2010 By Mark EINNEMANN -7- EXHIBIT A TO PURCHASE AGREEMENT LAND LEGAL DESCRIPTION Parcel 1: The N�/2 of Lot No. 10 and part of the SY2 of said Lot No. 10 of County Auditor's Plat No. 7, described as follows: Commencing at the NW corner of said S''/. 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 NW'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 lite 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 % 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 l I 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 3 l 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 `/i 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 Cite 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 EXHIBIT A TO PURCHASE AGREEMENT LAND LEGAL DESCR[PTION Parcel 3: The South Half(S-%) of Lot l0, excepting, therefrom that part of the South Half(S-%) of Lot 10 included within the following described real estate: That part of Government Lot 4, Section 20, Township 31 North, Range 2l West, City of Hugo, Washington County, Minnesota and that part of COUNTY AUDITORS PLAT NO. 7, according to the plat thereof on Cite 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 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 % 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 1 l 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 3 l 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 '/2 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 (3l) 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 1 l°01'52" West, a distance of Six Hundred Thirty-six and Sixty-one Hundredths (636.61) feet to a % inch iron pipe monument marked with a plastic cap inscribed RLS 6617; thence South l l°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 % 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 Hundredths (100.18) feet to a % 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 `/2 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 Egg Lake to its intersection with a line that bears North 89°30'25" East from the point of beginning; thence South 89°30'25" 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 EXIIII31T \ 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 1 l degrees 01 minutes 52 seconds West, a distance of 636.61 feet to a `/2 inch iron pipe monument marked with a plastic cap inscribed RLS 6617; thence North 89 degrees 30 minutes 25 seconds East, a distance of 150.00 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 l 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 tine 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 tine 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 1 13 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 descriptions A-7 EXHIBIT B TO PURCHASE AGREEMENT LIMITED WARRANTY DEED N.dOnq-0 Ix­and iru.114,oacrl:Cnifiauc of R.d Emma V;.I,.c fil"I I DIPtay STATE DEED rAXDUG I1V.Rr,0N S Mae: (­­d ile,­I g daw) LIMITED WARRANTY DEED POR VALUABLE:CONSIDERATION, THE CITY OF HUGO,a Minnesota municipal corporation("Grantor"),conveys and quitclaims to MARK FINNEIVIANN (­Grantee"),real property in Washington County, Minnesota, legally described as rollows: 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 suffiered anything to encumber the property. 'rhe Grantor certifies that the Grantor does not know of any wells on the described real property. (Affix Deed'rax Stamp Here) THE CITY OF HUGO (a Minnesota municipal corporation) By: Its: Mayor By: Its:Clerk STATE OF MINNESOTA SS. COUNTY OF_) The foregoing was acknowledged berbre me this_day or 2010,by the Mayor,and the City Clerk,orTHE CITY OF HUGO,a Minnesota municipal corporation,Grantor. Notary Public THIS INSTRUMENT WAS DRAFTED BY Send Tar Statements for(lie real property described herehi to, E.CKBERG,LAMMERS,BRIGGS, Michael Finneinann WOLFF&VIERLING.P.L.L.11(FICII) 1809 Northwestern Avenue Stillwater,MN MSM B-1 Business Retention and Expansion Downtown Project Team Action Plan Goal: Eliminate Blight in Downtown a. Assessment agreements The project team stated that elimination of the blighted properties in downtown was high on their priority list. The project team came up with a number to tasks to accomplish this goal. Providing property owners with options on ways to demolish blighted buildings that were unused was an idea that came out of the meetings. Staff has committed to approach the building owners with an assessment agreement to demolish the buildings. The costs are assessed to their taxes with a low interest rate over a period of time. Staff will continue to provide this option to property owners in the downtown and do research on grants that may be available. b. Property acquisition The City has been in the practice of acquiring properties along the east side of Highway 61in the downtown and demolishing the building for redevelopment proposes. There are other properties in the downtown area that could be acquired for the same purpose. The project team identified this as a task to eliminate blight in the downtown. The project team recommended that the City have the same practice of acquiring properties along 145th Street in the downtown area. Identifying the properties to be acquired will be necessary. C. Fagade improvements A way to help eliminate blight is to encourage fagade improvements to existing buildings in the downtown. This will improve the overall look of the downtown and a way for business owners to upgrade their buildings without building new. The projects team recommended that the City should research grants that are available for fagade improvement and what other cities have done to help their businesses improve their buildings. Encourage property owners to organize a property clean-up day. Goal: Infrastructure a. Highway 61 In Spring of 2010 the City will complete improvement construction projects at 147th Street and Highway 61 and 130th Street and Highway 61. Both projects include turn lanes and traffic signals. The City also has a memorandum of understanding between Washington County, Washington County Railroad Authority, and MNDOT on the future design for expansion to Highway 61, making it a four lane road. There is no timeline as of now when the expansion will happen and funding has not been set aside for the project. Staff has meet with members of the Washington County transportation technical advisory committee (TAC) to talk about getting the project on the radar screen for funding. Staff will continue to work towards applying for funding for the future expansion of Highway 61. b. Finley Avenue and Fenway Avenue Per the Downtown Plan Finley Avenue is proposed to extend to the south intersecting with County Road 8 through the downtown. Fenway Avenue is also proposed to be extended north to intersecting with County Road 8. This design will improve circulation in the downtown area. The City has purchased the necessary property to extend Finley to the south. C. Extension of Fitzgerald Avenue Per the Downtown Plan Fitzgerald Avenue is proposed to the extended between 146th and 145th Street. The downtown plan recommends improvement to street access and connectivity with the downtown, as well as enhancement to pedestrian access and walkability. d. Extension of 147th Street to the West Per the Downtown Plan and the Comprehensive Plan 147th Street is proposed to be extended to the west and connect with development on the western portion of the City. e. Stormwater and Drainage The City is working on a comprehensive stormwater management plan. The plan will provide a way to trade ponding and infiltration requirements in certain areas. This will be an incentive for developers that would propose a project in the downtown area. Currently there is a pond east of Wagner's Greenhouse that is sized for some development in the downtown. f. Trails Make sure all missing links in the regional trail system in the City are completed. For example complete the trail along Highway 61 between 145th Street and 140th Street, to connect to trail along Highway 8 and to the trail in the Bald Eagle Industrial Park. Goal: Downtown Design Guidelines a. Making Downtown Special The design guidelines for downtown are intended to provide direction to new development in downtown Hugo to shape plans for redevelopment. The project team wanted to make sure that the design guidelines are followed to create a pedestrian friendly atmosphere and to make the area unique to the other commercial districts in the City. The project team recommended that staff continue evaluate redevelopment projects on how they meet the intent of the design guidelines. b. Landscape and Streetscape The project team identified landscape and streetscape as an important aspect of the downtown design guidelines. Staff will continue to evaluate the proper time for the implementation on the Streetscape in the downtown area. qmHCity of ugo 14669 Fitzgerald Avenue North, Hugo,MN 55038 (651)762-6300 www.ci.hugo.mn.us May 26, 2010 Catherine Anderson 83 10 Scandia Trail North Forest Lake, MN 55025 RE: FIRE, HEALTH, AND LIFE SAFTEY CODE VIOLATIONS AT t4583 FOREST BLVD. Dear Ms. Anderson: The City of Hugo has declared the building located at 14583 Forest Blvd. to be "Hazardous" as defined under Minnesota Statute 463.15 and orders the building to be immediately removed as per Minn. Stat. 463.l6. The City of Hugo Building Inspection Department conducted an inspection of the property located at 14583 Forest Blvd. on June 1, 2006 and again on May 20, 2010 and has the following safety concerns: I. A bearing wall has been removed from the first level supporting the second floor, leaving the second floor very unstable and at risk of collapse. 2. Interior walls have been removed and copper plumbing has been removed exposing framing materials and exterior wall sheathing, which creates a lire hazard. 3. Open electrical circuits throughout the building create electrical fire hazards. 4. Upper level apartments have walls that are floating free from the floor caused by the removal of the first level bearing wall. The second level floors are unsupported by underlying bearing walls and are in danger or collapsing onto the first level. 5. The upper level apartments exit out onto a deck eight feet above grade level with a partial guard rail on one third of the deck and the remaining deck with no guardrail, which creates a dangerous fall hazard. The condition of the upper deck exit for emergency egress of two apartments is not code compliant and is structurally unsafe. 6. The stair system exiting the upper level deck is heavily over grown with trees and brush, is unstable, does not meet the 1Vlinnesota State Building Code requirements, and is in danger or collapsing. 7. A portion of the upper level roof area has been cantilevered over the upper level deck. The structural support ror the cantilever has been removed creating an unstable condition with possible collapse onto the deck. S. The east gable of the building is open to the elements allowing access to the attic space and possible entrance to the building. 9. Several windows on the upper floor are damaged or missing, leaving entrances for the public, rodents, birds and inclement weather. 10. The exterior exit on the north side of the building for the upper floor apartment does not meet Minnesota Building Code requirements, and; DRAFT ORDER OF THE CITY OF HUGO REGARDING HAZARDOUS AND SUBSTANDARD BUILDING LOCATED AT 14583 FOREST BOULEVARD NORTH, HUGO, MINNESOTA WHEREAS, this Order is made in connection with the property located at 14583 Forest Boulevard North, Hugo, Minnesota, legally described as follows: ALL OF LOT 12, THE NORTH 70 FEET OF LOT l3, AND THAT PART OF LOT 11 OF COUNTY AUDITORS PLAT #7 WHICH IS LEGALLY DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHWEST CORNER OF SAID LOT 11, THEN RUNNING ALONG THE SOUTH LINE OF SAID LOT It TO THE SOUTHEAST CORNER, THEN RUNNING NORTH ALONG THE EAST LINE A DISTANCE OF 3 FEET, THEN RUNNING IN A NORTHWESTERLY DIRECTION TO A POINT ON THE WEST LINE OF SAID LOT WHICH IS 10 FEET NORTH OF THE SOUTHWEST CORNER, THEN RUNNING SOUTH ALONG THE WEST LINE A DISTANCE OF 10 FEET TO THE POINT OF BEGINNING. And; WHEREAS, the Property is owned by, without limitation, Catherine Anderson("The Owner"), and; WHEREAS, pursuant to Minnesota Statutes § 463).15, et seq., the City Council of the City of Hugo having duly considered the matter, finds the structure located on the above described property to be a hazardous building for the reasons set forth herein, and; WHEREAS, the Building Inspectors for the City of Hugo have inspected the above referenced structure. Those inspections revealed that the structure is seriously dilapidated, is structurally unsound, is not secure, and is beyond repair, and; WHEREAS, this structure constitutes a hazard to public safety or hca1t11 for tllc following reasons: 1. A bearing wall has been removed from the first level supporting the second floor, leaving the second floor very unstable and at risk of collapse. 2. Interior walls have been removed and copper plumbing has been removed exposing framing materials and exterior wall sheathing, which creates a fire hazard. 3. Open electrical circuits throughout the building create electrical fire hazards. I. The property owner shall cause the structure to be razed and removed within thirty (30) days of the date hereof and the property brought into compliance with the code and all substandard, dilapidated, hazardous and violative conditions upon it abated. 2. Unless the structure is razed and removed and property nuisances are abated, the City shall cause the building to be razed and removed, and will abate the nuisances. 3. Moreover, if the City of Hugo is compelled to take any action to abate these hazardous conditions and nuisances, all necessary costs expended by the City will be assessed against the real estate and collected as other taxes as provided in Minn. Stat. § 463.21. 4. A copy of this order shall be personally served upon The Owner. 5. A motion for summary enforcement of this order will be made to the district court of Washington County unless corrective action is taken or an answer tiled. Passed and adopted by the City Council for the City of Hugo this 7`"day of June, 2010. Fran Miron, Mayor ATTEST: Michele Lindau, City Clerk ' j ilH cityoe U9014669 f4669 fitz�erald Avenue North, Hugo,MN 3035 (651)762-6300 www.ci.hu,o.mn.us May 26, 20 10 Catherine Anderson 83 l0 Scandia Trail North Forest Lake, MN 55025 RE: FIRE, HEALTH, AND LIFE SAFTEY CODE VIOLATIONS AT 1483 FOREST BLVD. Dear Ms. Anderson: The City of Hugo has declared the building located at 14583 Forest Blvd. to be "Hazardous" as defined under Minnesota Statute 463.15 and orders the building to be immediately removed as per Minn. Stat. 463.16. The City of Hugo Building [nspection Department conducted an inspection of the property located at 14583 Forest Blvd. on June 1, 2006 and again on May 20, 2010 and has the following safety concerns: 1. A bearing wall has been removed from the first level supporting the second floor, leaving the second floor very unstable and at risk of collapse. 2. [nterior walls have been removed and copper plumbing has been removed exposing framing materials and exterior wall sheathing, which creates a fire hazard. 3. Open electrical circuits throughout the building create electrical fire hazards. 4. Upper level apartments have walls that are floating free from the floor caused by the removal of the first level bearing wall. The second level floors are unsupported by underlying bearing walls and are in danger of collapsing onto the first level. 5. The upper level apartments exit out onto a deck eight feet above grade level with a partial guard rail on one third of the deck and the remaining deck with no guardrail, which creates a dangerous fall hazard. The condition of the upper deck exit for emergency egress of two apartments is not code compliant and is structurally unsafe. 6. The stair system exiting the upper level deck is heavily over grown with trees and brush, is unstable, does not meet the Minnesota State Building Code requirements, and is in danger of collapsing. 7. A portion of the upper level roof area has been cantilevered over the upper level deck. The structural support for the cantilever has been removed creating an unstable condition with possible collapse onto the deck. 8. The east gable of the building is open to the elements allowing access to the attic space and possible entrance to the building. 9. Several windows on the upper floor are damaged or missing, leaving entrances for the public, rodents, birds and inclement weather. l0. The exterior exit on the north side of the building for the upper floor apartment does not meet Minnesota Building Code requirements, and; ORAFT ORDER OF THE CITY OF HUGO REGARDING HAZARDOUS AND SUBSTANDARD BUILDING LOCATED AT 1=4583 FOREST BOULEVARD NORTH, HUGO, MINNESOTA WHEREAS, this Order is made in connection with the property located at 14583 Forest Boulevard North, Hugo, Minnesota, legally described as follows: ALL OF LOT 12, THE NORTH 70 FEET OF LOT 13, AND THAT PART OF LOT 11 OF COUNTY AUDITORS PLAT #7 WHICH IS LEGALLY DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHWEST CORNER OF SAID LOT 11, THEN RUNNING ALONG THE SOUTH LINE OF SAID LOT It TO THE SOUTHEAST CORNER, THEN RUNNING NORTH ALONG THE EAST LINE A DISTANCE OF 3 FEET, THEN RUNNING IN A NORTHWESTERLY D[RECTION TO A POINT ON THE WEST LINE OF SAID LOT WHICH IS 10 FEET NORTH OF THE SOUTHWEST CORNER, THEN RUNNING SOUTH ALONG THE WEST LINE A DISTANCE OF 10 FEET TO THE POINT OF BEGINNING. And; WHEREAS, the Property is owned by, without limitation, Catherine Anderson ("The Owner"), and; WHEREAS, pursuant to Minnesota Statutes § 463.1 5, et seq., the City Council of the City of Hugo having duly considered the matter, finds the structure located on the above described property to be a hazardous building for the reasons set forth herein, and; WHEREAS, the Building Inspectors for the City of Hugo have inspected the above referenced structure. Those inspections revealed that the structure is seriously dilapidated, is structurally unsound, is not secure, and is beyond repair, and; WHEREAS, this structure constitutes a hazard to public safety or health for the following reasons: I. A bearing wall has been removed from the first level supporting the second floor, leaving the second floor very unstable and at risk of collapse. 2. Interior walls have been removed and copper plumbing has been removed exposing framing materials and exterior wall sheathing, which creates a fire hazard. 3. Open electrical circuits throughout the building create electrical fire hazards. 1. The property owner shall cause the structure to be razed and removed within thirty (30) days of the date hereof and the property brought into compliance with the code and all substandard, dilapidated, hazardous and violative conditions upon it abated. 2. Unless the structure is razed and removed and property nuisances are abated, the City shall cause the building to be razed and removed, and will abate the nuisances. J. Moreover, if the City of Hugo is compelled to take any action to abate these hazardous conditions and nuisances, all necessary costs expended by the City will be assessed against the real estate and collected as other taxes as provided in Minn. Stat. § 46,3.21. 4. A copy of this order shall be personally served upon The Owner. 5. A motion for summary enforcement of this order will be made to the district court of Washington County unless corrective action is taken or an answer tiled. Passed and adopted by the City Council for the City of Hugo this 7`"day of June, 2010. Fran Miron, Mayor ATTEST: Michele Lindau, City Clerk LP HCily of ugo 14669 Fitzgerald Avenue North, 1-lugo, MN 55038 (651)762-6300 www.ci.hugo.mn.us May 12, 2010 Jason Gamble President, The River Bank 11151 Lake Boulevard PO Box G Chisago, MN 55013 RE: Ricci's property 1477717orest Blvd. N. Dear Mr. Gamble, On behalf of the City of Hugo's Economic Development Authority, l would like to arrange a meeting with you to discuss the condition of the building located at 14777 Forest Blvd. N. The City is interested in discussing and assisting with the demolition of this building. The City staff is also working with other property owners in downtown Hugo in an effort to reduce blight and improve redevelopment prospects. For example, we are negotiating with the owners of another blighted building in the City's downtown. In this case, the City would demolish the building and finance the demolition cost as an assessment against the property. The assessment would run for ten years at an annual interest rate of less than 5%. In the event the property is redeveloped, the total demolition cost may be recouped through the use of Tax Increment Financing. In addition, the City has identified potential grant resources that may pay a portion of the demolition costs. Not only will demolition of this building improve economic conditions in the City's downtown, but we believe removal of the building will improve your property's marketability and value. The City's Economic Development Authority is committed to assisting you, if possible, with the demolition of the building and the redevelopment of this property. Please contact me at 651-762-6320 at your earliest convenience to arrange a meeting to discuss this matter. Sincerely, B an J. ear Community Development Director c: Honorable Mayor and Council Economic Development Authority Mike Ericson, City Administrator Brian Zeller, Greystone Commercial io HUgOCite of 14669 Fitzgerald Avenue North, Hugo, MN 55038 (651)762-6300 www.ci.hugo.mn.us May 12. 2010 Zena Minich 2150 Arcade Street Maplewood, MN 55103 RE: Endzone property 13891 Forest Blvd. N. Dear Ms. Minich, On behalf of the City of Hugo's Economic Development Authority, I would like to arrange a meeting with you to discuss the condition of the building located at 13891 Forest Blvd. N. The City is interested in discussing and assisting with the demolition of this building. The City staff is also working with other property owners in downtown Hugo in an effort to reduce blight and improve redevelopment prospects. For example, we are negotiating with the owners of another blighted building in the City's downtown. In this case, the City would demolish the building and finance the demolition cost as an assessment against the property. The assessment would run for ten years at an annual interest rate of less than 5%. In the event the property is redeveloped, the total demolition cost may be recouped through the use of Tax Increment Financing. In addition, the City has identified potential grant resources that may pay a portion of the demolition costs. Not only will demolition of this building improve economic conditions in the City's downtown, but we believe removal of the building will improve your property's marketability and value. The City's Economic Development Authority is committed to assisting you, if possible, with the demolition of the building and the redevelopment of this property. Please contact me at 651-762-6320 at your earliest convenience to arrange a meeting to discuss this matter. Sincerely, C- 6an J. ear '; Community Development Director c: Honorable Mayor and Council Economic Development Authority Mike Ericson, City Administrator Bill Lentsch, Cities Real Estate HCity of ugo 14669 Fitzgerald Avenue North, Hugo, MN 55038 (651)762-6300 www.6hugo.mn.us May H. 2010 Rick Mark National Recycling, Inc. 15717 Forest Blvd. N Hugo, MN 55038 Dear Mr. Mark, The City of Hugo has received complaints regarding the use of property that you own at 15717 Forest Blvd. N. Specifically, the complaints refer to the intense use of the property as a scrap yard and recycling business, the unsightly nature of the piles of scrap and debris, and the extraordinary size of the piles. In addition, the City has received numerous traffic complaints, regarding long lines of traffic waiting to enter the site on the shoulder of the road (sometimes on both sides), trucks backing onto and turning around on Hwy 61, and concerns about public safety and the probability of traffic accidents occurring on Hwy 61 because of the intense use. The existing use of the property as a recycling company and scrap yard is not permitted, as the property is not zoned for the use, and no permits or approvals have been applied for or granted. Additionally, the use of the property generates conditions that pose public safety hazards to through traffic on Highway 61 because of parking on the shoulder, intense traffic and truck activity and other conditions. There are two options for you to consider at this time. First, you may change the use of the property to a use that is allowed by the zoning for this property (C-2, General Business). Secondly, you may apply for a change in zoning to a zoning district that would allow the use. Please advise me of your intentions within the neat 30 days. Note that applying for a rezoning does not suspend your obligation to bring the property into compliance and eliminate the unpermitted use. In either option, you must take immediate steps to reduce the impacts of the current use, including the removal of stockpiles of scrap metal, debris, and recycling material, and you must take whatever action is necessary to eliminate the stacking of traffic, the backing of vehicles, and other maneuvering of traffic related to this use that may cause a public safety hazard on Hwy 61. I am willing to meet with you to discuss solutions, including the relocation of the business to a location in the City of Hugo which is zoned to permit this type of activity. Please contact me at 651-762-6320 to discuss this matter. Thank you for your cooperation. Sincerely, Bryan J. Bear Communnity Development Director c: Honorable Mayor and Council Mike Ericson, City Administrator David K. Snyder, City Attorney • u re Invitedl, Ta Business Networking Breakfast Hosted by: Hugo Business Association Business Networking International Hugo Economic Development Authority - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Where: Hugo City Hall - Oneka Room 14669 Fitzgerald Avenue North When: June 15, 2010 * 7:30 am - 9:00 am - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Mayor Fran Miron will be giving a State of the City address and time will be provided after for questions and networking. - - - - - - - - - - - - - - - - - - - There is limited seating for this FREE event. To reserve your spot, please r JC400 I RSVP to Rachel Simone at (651) 762-6304 or rsimone@ci.hugo.mn.us by June 10, 2010. - - - - - - - - - - - - - - - - - - - A breakfast buffet will be served including scones &jam, blueberry muffins, bagels & cream cheese, fresh fruit tray, yogurt, waffle station with fruit, syrup, sausages, juice, milk, coffee, and water.