HomeMy WebLinkAbout2011.08.08 EDA Packet AGENDA
CITY OF HUGO
ECONOMIC DEVELOPMENT AUTHORITY
MONDAY, AUGUST 8, 2011
8:30 AM
8:30 am 1. Call to Order
8:31 am 2. Roll Call
8:32 am 3. Approval of Minutes
EDA Meeting of July It, 2011
8:35 am 4. Discussion on Greater Minneapolis St. Paul Economic
Development Partnership meeting on August 23, 2011
9:00 am 5. Discussion on Entrepreneur Boot Camp
9:15 am 6. Update on Flexible Office Space
9:45 am 7. Update on City Rental Properties
10:00 am 8. Update on Mixed-Use Redevelopment LCDA Grant
10:15 am 9. Update on Downtown Redevelopment
10:30 am 10. Adjournment
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BACKGROUND MEMO FOR THE EDA MEETING OF
MONDAY, AUGUST 8, 2011
3. APPROVAL OF MINUTES
Staff recommends approval of the minutes from the July 11, 2011, EDA Meeting as
presented.
4. DISCUSSION ON GREATER MINNEAPOLIS ST. PAUL ECONOMIC
DEVELOPMENT PARTNERSHIP
Washington County has been contacted by a newly formed Greater MSP Economic
Development Partnership (Greater MSP) to seek help in coordinating an economic
development roundtable in the County. This organization was created to enhance existing
economic development efforts in the greater metropolitan region. They are reaching out
to private and public economic development leaders in Washington County to assist them
in developing an aggressive regional economic development strategy.
The City of Hugo has been informed by Washington County that they seek participation
from cities in Washington County and business owners in the Greater MSP Economic
Development Partnership, which will be holding a meeting on Tuesday, August 23, 2011.
Deputy County Manager Molly O'Rourke has informed the City of Hugo that it seeks
participation from two City officials as well as local business owners.
The City Council considered this request at its August 1, 2011, meeting and appointed
Bryan Bear, Community Development Director as a representative and requested the
EDA select someone of its membership as another representative of Hugo. Washington
County will be contacting Wilson Tool and Schwieters Companies to be part of the
roundtable discussion as private economic development leaders.
5. DISCUSSION ON ENTREPRENEUR BOOT CAMP
At its July 11, 2011, meeting the EDA had a discussion on a concept, presented by the
BNI group, for an entrepreneur boot camp. The sessions would help small business and
entrepreneurs grow and create new businesses. Staff would like to provide the EDA with
an update on how the boot camp is moving forward in partnership with the Hugo
Business Association (HBA).
6. UPDATE ON FLEXIBLE OFFICE SPACE
Staff will update the EDA on flexible office space.
7. UPDATE ON CITY RENTAL PROPERTIES
Staff will update the EDA on the City rental properties. Staff has included the expense
reports from September 2010 on the properties.
8. UPDATE ON MIXED-USE REDEVELOPMENT LCDA GRANT
Staff will update the EDA on the progress of the LCDA grant for the Sampair property.
9. UPDATE ON DOWNTOWN REDEVELOPMENT
Staff will update the EDA on downtown redevelopment. Staff has included the
assessment agreement for the demolition of the Ricci's property.
MINUTES FOR THE EDA MEETING OF JULY 11,2011
Miron called the meeting to order at 8:30 am.
PRESENT: Arcand, Bever, Graff, Klein, Puleo, and Miron
ABSENT: Denaway
STAFF: Mike Ericson, City Administrator
Bryan Bear, Community Development Director
Rachel Juba, Planner
APPROVAL OF MINUTES FOR THE EDA MEETING OF JUNE 13, 2011
Klein made motion, Puleo seconded, to approve minutes for the EDA meeting of June 13,
2011.
All aye. Motion carried.
CHRISTY WEFLEN—ST. CROIX SADDLERY
Christy Weflen, owner of St. Croix Saddlery, was present at the meeting and discussed her
business with the EDA. St. Croix Saddlery is moving into the old daycare building located at
5525 141" Street. Ms. Weflen provided the background of her business to the EDA. She
stated that they specialize in English style riding and there is only one other English retailer
in the State. She stated that they have four full time employees and ten part time employees.
The EDA welcomed St. Croix Saddlery as a new business in the City of Hugo.
GRETCHEN BOYD - BNI PRESIDENT
Gretchen Boyd, President of Business Network International (BNI), was present at the
meeting to give the EDA background on BNI and how it benefits businesses. She stated that
BNI compliments the Hugo Business Association (HBA). BNI is a group of business owners
that support each other through networking and referrals. The Hugo BNI group, called Hugo
Preferred Partners, started in May 2009. They have 23 members and had $400,000 in
referrals since January 2011.
She also talked to the EDA about educational seminars that the BNI group may offer to small
businesses and entrepreneurs. It would be like an entrepreneurial boot camp that would
provide information on how to start and grow a business. The information would include tips
on financing, banking, legal, and business resources.
Miron added that staff may want to include a presentation on home occupations and under
what conditions they are allowed in Hugo. Bryan Bear stated there are several home
occupations and also several patents in Hugo. This seminar could offer people with the
proper connections to get their business started or to grow their business.
UPDATE ON FLEXIBLE OFFICE SPACE
Staff and Commissioner Graff met with Grant Barrette, a property owner in the Bald Eagle
Industrial Park that has office space available. Flexible office space was discussed with the
owner and he seemed interested. Staff will continue to work with the property owner to help
him lease the space.
UPDATE ON THE BUSINESS NETWORKING BREAKFAST
The EDA and HBA business networking breakfast was held on Tuesday, June 28, 2011.
Washington County Attorney, Pete Orput, spoke to the group about identity theft. There were
over 50 people that attended the event. Miron stated that the business breakfasts are
important and they should continue.
UPDATE ON CITY RENTAL PROPERTIES
The print shop building has been leased out to an individual that cleans foreclosed properties
and will use it for storage. The barber shop area will soon be vacant, as Pricilla will be
leaving the business. The house that the City owns to the north will also be vacant. Staff will
walk through the rental house to see if it will be rented out again.
Miron asked staff to provide information on the rental properties in regards to costs.
UPDATE ON MIXED-USE DEVELOPMENT LCDA GRANT
Staff helped Pete Sampair complete the Met Council's Livable Communities development
grant pre-application for a mixed-use development that was due in May 2011. Staff received
the feedback from the Met Council on June 13, 2011. They stated that although we are
welcome to submit the full application, the project does not seem ready to be competitive in
the application process.
There is a predevelopment grant, designed for providing money for planning a development,
which Mr. Sampair is applying for. Staff will continue to update the EDA on the progress of
the grant application.
UPDATE ON DOWNTOWN REDEVELOPMENT
The purchase agreement for the Ricci's property has been canceled. Staff will continue to
talk to the bank on the demolition of the building.
The City is continuing to work with the development team that has the purchase agreement
on the City owned property.
Staff updated the EDA on the Minneapolis/St. Paul Business Journal article on Hugo being
the fast growing City in the metro area.
ADJOURNMENT
Klein made a motion. seconded by Bever,to adjourn at 10:30 am.
All ave. Motion carried.
Rachel
Subject: FW: Great MSP Regional Economic Development Partnership
-----Original Message-----
From: Molly O'Rourke fmailto:Molly.ORourke@co.washington.mn.usj
Sent: Saturday, July 23, 20113:45 PM
To: 'Scott Neilson'; 'a.hurlburt@ci.scandia.mn.us'; 'bdacy@wchra.com'; 'townclerk@denmarktownship.org';
'BAnderson@newportmn.com'; 'bmesselt@lakeelmo.org'; 'smpclerk@comcast.net'; 'cgridley@ci.woodbury.mn.us';
'baytowncf@comcast.net'; 'Craig.waldron@ci.oakdale.mn.us'; 'bwclerk@comcast.net';
'eajohnson@cityofoakparkheights.com'; 'dellwoodcityhall@comcast.net'; 'cityofpinesprings@juno.com';
'Kathy.Sch moeckel @sti I lwatertownsh ip.com'; 'Kent.Gra ndlienard@state.mn.us'; 'kwalsh@stpaulpark.org';
'clerk@cityofgrant.com'; 'Ihansen@ci.stillwater.mn.us'; 'llklein65@hotmail.com'; 'cityclerk@cityoflandfall.com';
Mike Ericson; 'mberg@ci.bayport.mn.us'; 'lakelandshores@gmail.com'; 'richardmullen@aol.com';
'administrator@ci.afton.mn.us'; 'rschroeder@cottage-grove.org'; 'cityclerk@cityoflandfall.com';
'townclerk@westlakeland.govoffice2.com'; 'vkeating1@comcast.net'
Subject: Great MSP Regional Economic Development Partnership
Washington County has been contacted by the newly formed Greater MSP Economic Development Partnership
(Greater MSP) to seek our help in coordinating an economic development roundtable in the county.
Greater MSP is a business led private-public partnership fostered by the Itasca Project Jobs Growth Task Force.
This new organization was created to enhance existing economic development efforts in the greater metropolitan
region. Greater MSP(covers l 1 counties in the metro area) is seeking to hold a local meeting(a similar meeting
will be held in each county) to engage private and public economic development leadership in Washington
County to assist them in developing an aggressive regional economic development strategy. In addition to a
presentation from Greater MSP's CEO, Michael Langley, there will be a roundtable discussion regarding our
current strategies and efforts and how we can best take advantage of Greater MSP's functions and resources to
attract and retain businesses to the area.
The roundtable event is scheduled for Tuesday, August 23`d around noon. We are writing you to ask for your help
in identifying private business leaders that should be invited to participate in this roundtable. In addition, we are
asking for your help in identifying local elected or appointed officials that have been active in economic
development activities that should be invited.
Given the need to provide adequate time for participation by everyone that attends, the target number of
participants is 30 to 40 people. Thus, not every community will be able to have a representative at this meeting.
Given the short timeline, we ask that you respond to this request in the next few days.
In the meantime, if you have any questions, please let me know.
Molly O'Rourke,
Deputy Administrator
Washington County
651-430-6003
Molly.O'Rourke@co.washington.mn.us
i
Washington
Board of Commissioners
Dennis C. Hegberg, District 1
cotmty Bill Pulkrabek, District 2
Gary Kriesel, Chair, District 3
Autumn Lehrke, District 4
Lisa Weik, District 5
August 3, 2011
Mike Erickson, City Administrator
Hugo
14669 Fitzgerald Avenue N.
Hugo, MN 55038
Dear Mr. Erickson:
I am writing to you as one of the leaders in economic development efforts in Washington County to invite you to
participate in a roundtable discussion with the new Greater Minneapolis Saint Paul Regional Economic
Development Partnership(Greater MSP). This event is Tuesday, August 23, 2011, at noon at the Lowell Inn,
Event Center in Stillwater.
Greater MSP is a business-led private-public partnership fostered by the Itasca Project Jobs Growth Task Force.
This organization has the potential and resources to greatly enhance our existing economic development efforts.
The purpose of the meeting is to engage Washington County private and public economic development
leadership with Greater MSP to assist it in developing an aggressive regional economic development strategy. In
addition to a presentation from Greater MSP's CEO, Michael Langley,there will be a roundtable discussion
regarding our current strategies and efforts and how we can best take advantage of Greater MSP's functions and
resources.
We need your attendance and input to make this a successful partnership. Lunch will be served.
Again, thank you for your leadership efforts in the past. I hope you can attend this important meeting on
Tuesday,August 23, at noon at the Lowell Inn, Event Center, 102 North Second Street, Stillwater, MN 55082.
There is complimentary parking available in the attached parking ramp.
If you have any questions or concerns, please contact Molly O'Rourke at 651-430-6003.
Please RSVP to Molly.O'Rourke@co.washington.mn.us by Thursday, August 18, 2011.
Best Regards,
1tL-0
Gary Kriesel, Chair
Washington County Board of Commissioners
Attachment
Government Center•14949 62nd Street North• P.O.Box 6•Stillwater,MN 55082-0006
Telephone:651-430-6001 • Fax:651-430-6017•TTY:651-430-6246
www.co.washington.mn.us
Washington County is an equal opportunity organization and employer
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1. Host
A. Welcome and definepurpose of meetin9.,: to engage e Washin ton CountY
economic development leadership to partner in developing the }'
GreaterMSP regional economic development strategy -
B. Self-introduction of roundtable participants
C. Introduction of Michael Langley
3
2. Mike Langley—Greater MSP
p A. Introduction of Greater MSP Team
R ,F
B. Greater MSP overview, goals, and accomplishments
. ,
3. County Presentation
A. Demographics
B. Strengths in Washington County
C. Biggest challenges in Washington County
D. Current economic development environment, activities, and tools
v
4. Roundtable
A. What key industry/business sectors are most important to Washington
County now and in the future, and why?
B. What Greater MSP promotion, marketing and project coordinating services
are most important to Washington County?
C. Discuss economic development process in Washington County. How does
Greater MSP plug-in and support economic development efforts? Who can
best interface with Greater MSP?
5. Close/Next Steps
1
Boot Camp for Entrepreneur Goals
1 . The goals of Boot Camp for Entrepreneurs are:
a. To assist home based businesses, start-up businesses, existing small
businesses with creating, growing and improving their business
b. To continue to foster the unique small town feeling of Hugo neighbor
helping neighbor
Strategy
1 . Utilize the resources of our business community to conduct the Boot
Camp for Entrepreneurs which include:
* The City of Hugo Economic Development Authority - City of Hugo Staff
* The Hugo Business Association
* The Business Network International - Preferred Partners Chapter
* Small businesses that are located in or do business in Hugo
* Saint Thomas University - Entrepreneurship School
* The Small Business Administration
Methodology
1 . Conduct three Boot Camp sessions that address:
* Marketing
* Finance
* Resources - Lessons Learned
2
Curriculum for Session One
1 . We need to provide a compelling first session that makes the decision to
return to subsequent seminars an easy decision. We need to spend two
hours on ideas that will provide a helping hand in getting new or
additional business. We recommend that the first session be an overview
by the main speaker for each of the three sessions and an introduction
of each marketing topic for session one.
To do list:
* recruit a session leader to provide an overview of the three sessions,
introduce the speakers and keep the meeting on time and focused
* recruit a marketing professional to discuss the value of a marketing
communications plan that includes brand awareness
* recruit a newspaper editor to discuss the in and outs of an effective
advertising plan
* recruit a direct response marketing professional to discuss building a
business with direct response ads
* recruit a internet marketing professional to discuss the web and how a
small business can leverage "Google"
* recruit a local business person that will demonstrate the use of Google for
their business
2.We need to create an environment in the meeting that encourages the
attendees to attend the next weekly BNI meeting, the next HBA meeting
and the next Hugo Economic Development Authority meeting to
introduce themselves and give us their 60 second elevator speech. We in
turn have to listen and learn about their needs
3
Curriculum for Session Two
1 . This session is composed of two sessions, the first part will be
conducted by a CPA and the second will be conducted by two financial
institutions.
2. The CPA firm will cover the various methods of organizing a business,
for example, "S" Corporation and LLC. The various types, advantages
and disadvantages, which format is best for drawing a salary, etc.The
CPA will also cover the highlights of financial reporting for the federal and
state government for tax liability.
3.The CPA will teach the Boot Camp attendees about the key financial
documents required to run a business and how to use them when dealing
with a financial institutions
4. The financial institutions will teach the attendees how to approach a
bank or credit union and how to build a business relationship. The
importance of financial documentation and what tools and resources
available to small business for things like financing a new business,
inventory, etc.
To do list
* recruit a CPA firm to teach the financial reporting and accounting portion
of session two
*recruit financial institution to cover the banking portion of the session
* recruit a small business person who has had success in financing a
business in a tough economy
4
Curriculum for Session Three
1 . This session will focus on the resources available to the Boot Camp that
are available from a business attorney, the City of Hugo, Saint Thomas
University Entrepreneurship Business School and the Small Business
Administration. A Hugo business owner who transitioned from a Law
Firm to the leader of five small business units will discuss what she has
learned during her law and business ownership career
To do list:
* recruit a representative of the City of Hugo
* recruit the Hugo small business attorney that transitioned from business
attorney to entrepreneur
* recruit a business attorney that will meet one on one with any interested
attendee for one hour (pro bono)
* Recruit a professor from the University of Saint Thomas Entrepreneurship
school
* recruit a representative of the Small Business Administration
5
Communicating this opportunity:
* 1/4 page advertisement in the Citizen prior to the first session
* Point of sale brochure at each Hugo, Centerville and Lino Lakes retail
establishment (copy of Citizen ad)
* Utilize electronic signage of North Country Auto, Saint John's and the City
of Hugo to highlight the date, time and location
* Utilize City of Hugo web site to provide details of goals, curriculum, and
registration
* Recruit Deb Barnes, editor of the Citizen to write an article about the Boot
Camp for Entrepreneurs
* Make every member of the HBA and the BNI aware at all upcoming
meetings and volunteer opportunities
* Dispatch BNI Preferred Partner Ambassador to the other BNI chapters in
our area to make a 10 minute presentation
Next Steps:
1 . Presentation to HBA planning meeting July 28, 2011 , 4:00 p.m. at the
Lakes Area Bank in Hugo
2.BNI attendees email or call Mike with suggestions, ideas, critiques of
today's draft
3.Form small high performance teams to be responsible for:
* Session One
* Session Two
* Session Three
* Communications
14667 Forest Boulevard
Income and Expense Summary
14667 Forest Boulevard 2006 2007 2008 2009 2010 Cumulative
Cost of Acquisition $ 195,411.96
Land = 10,381 square feet
Thru Sept
Assessed Value: Building $ - $ - $ - $ - $ -
Assessed Value: Imps $ 50,200 $ 50,200 $ 50,200 $ 48,100 $ 48,100
Assessed Value: Land $ 74,200 $ 74,200 $ 74,200 $ 124,600 $ 124,600
Assessed Value: Total $ 124,400 $ 124,400 $ 124,400 $ 172,700 $ 172,700
Rent Received $ 7,315.00 $ 6,980.00 $ 3,780.00 $ 3,780.00 $ 2,835.00 (1) $ 24,690.00
Expenses:
Electric Utilities $ 492.99 $ 1,235.59 $ 1,345.39 $ 1,287.06 $ 881.29 $ 5,242.32
Gas Utilities $ 90.17 $ 278.48 $ 253.56 $ 259.91 $ 185.38 $ 1,067.50
Insurance $ 1,017.00 $ 733.00 $ 782.00 $ 774.00 $ 844.00 $ 4,150.00
Interest(Contract for Deed) $ 2,858.44 $ 8,498.21 $ 8,377.50 $ 5,576.43 $ - $ 25,310.58
Legal Fees $ 1,111.00 $ - $ - $ - $ - $ 1,111.00
Repair& Maintenance (2) $ 185.63 $ 21.91 $ 782.24 $ - $ 140.81 $ 1,130.59
Taxes $ 1,347.00 $ 2,790.00 $ 2,860.00 $ 2,860.00 $ 4,252.00 $ 14,109.00
$ 7,102.23 $13,557.19 $ 14,400.69 $ 10,757.40 $ 6,303.48 $ 52,120.99
Revenue over Expenses $ 212.77 $ (6,577.19) $ (10,620.69) $ (6,977.40) $ (3,468.48) $ (27,430.99)
Return on Acquisition 0.11% -3.37% -5.44% -3.57% -1.77%
Comparison:
Rate on 5-Year Treasury Bond 4.75% 4.43% 2.80% 2.20% 1.26%
(1) Current tenant is Priscilla Deveau (Barbershop) on a month-to-month lease
(2) Repairs & Maintenance does not include staff time making repairs
14701 Forest Boulevard
Income and Expense Summary
14701 Forest Boulevard 2002 2003 2004 2005 2006 2007 2008 2009 2010 Cumulative
Cost of Acquisition $ 179,436.22
Land=12,005 square feet
Bldg= 1,499 square feet
Building Built in 1901
Thru Sept
Assessed Value: Building $ 116,400 $ 128,000 $ 133,100 $ 142,000 $ 129,600 $ 126,600 $ 123,800 $ 9,700 $ 8,600
Assessed Value: Land $ 21,000 $ 23,000 $ 45,000 $ 45,000 $ 52,500 $ 52,500 $ 47,300 $ 115,700 $ 113,400
Assessed Value: Total $ 137,400 $ 151,000 $ 178,100 $ 187,000 $ 182,100 $ 179,100 $ 171,100 $ 125,400 $ 122,000
Rent Received $13,650.00 $14,400.00 $14,375.00 $14,300.00 $ 9,150.00 $14,400.00 $13,050.00 $ 6,592.00 (1) $ 99,917.00
Expenses:
Electric Utilities $ 630.53 $ 970.50 $ 180.74 $ 273.39 $ 3,017.60 (2) $ 1,590.90 $ 1,570.46 $ 1,746.46 $ 9,980.58
Gas Utilities $ 918.03 $ 1,336.46 $ 453.04 $ - $ 3,313.85 (2) $ 2,206.87 $ 1,639.69 $ 1,191.24 $ 11,059.18
Insurance $ 727.00 $ 855.50 $ 916.00 $ 1,017.00 $ 1,789.25 $ 1,245.50 $ 1,234.00 $ 1,346.00 $ 9,130.25
Legal Fees $ - $ - $ - $ - $ 1,717.83 (3) $ 44.56 $ - $ - $ 1,762.39
Repair&Maintenance(4) $ 333.91 $ - $ - $ 182.48 $ 861.09 $ 303.83 $ 662.03 $ 678.39 $ 3,021.73
Taxes $ 1,314.00 $ 1,666.00 $ 1,780.00 $ 1,844.00 $ 1,696.00 $ 1,822.00 $ 1,740.00 $ 1,344.00 $ 13,206.00
$ 3,923.47 $ 4,828.46 $ 3,329.78 $ 3,316.87 $12,395.62 $ 7,213.66 $ 6,846.18 $ 6,306.09 $ 48,160.13
Revenue over Expenses $ 9,726.53 $ 9,571.54 $11,045.22 $10,983.13 $ (3,245.62) $ 7,186.34 $ 6,203.82 $ 285.91 $ 51,756.87
Return on Acquisition 5.42% 5.33% 6.16% 6.12% -1.81% 4.00% 3.46% 0.16%
Comparison:
Rate on 5-Year Treasury Bond 2.97% 3.43% 4.05% 4.75% 4.43% 2.80% 2.20% 1.26%
(1)Tenants owe$2,127 in back rent as of 09/30/10-Does not include staff time spent collecting rent
(2)Xcel was billing tenant but ultimately held city responsible for past due bills under a PUC rule prohibiting a tenant from being billed for gas and electric
service when one meter is used for a multiple unit rental property
(3)Unlawful detainer action to evict tenant for nonpayment of rent and utility bills
(4)Repairs&Maintenance does not include staff time making repairs
a
Return To:
David K. Snyder
Eckberg, Lammers, Briggs, Wolff& Vierling, P.L.L.P.
1809 Northwestern Avenue
Stillwater, MN 55082
CITY OF HUGO
WASHINGTON COUNTY, MINNESOTA
DEVELOPMENT AND ASSESSMENT AGREEMENT
INSERT LEGAL
THIS AGREEMENT, made and entered into this day of , 2011,
by and between the City of Hugo, a Minnesota municipality organized under the laws of the
State of Minnesota (hereinafter referred to as "City"); and River Bank (hereinafter referred to as
"Owner"). Owner owns the property legally described on Exhibit A hereto, including
improvements and a building ("the Property").
WITNESS:
WHEREAS, it is the policy of the City to enter into development contracts as
contemplated in Minnesota Statutes §462.358, Subd. 2(a).
WHEREAS, Minnesota Statute §463.151 provides in part that -The governing body of
any municipality may remove or raze any hazardous building upon obtaining the consent in
writing of all owners of record occupying tenants and all lien holders of record; the cost shall be
charged against the real estate...(or) the governing body may provide that the cost so assessed
may be paid in not to exceed five (5) equal annual installments with interest thereon at eight
percent (8%) per annum.
WHEREAS, Minnesota Statute §463.21 provides in part that"(t)he cost of the razing...or
removal may be: a lien against the real estate."
WHEREAS, Owner has requested that the City proceed, at the earliest possible time, to
raze the building on the property and all its contents and proceed to demolish it and remove all
improvements, rubble and debris because the property owner believes that the building is
inadequately maintained, dilapidated and is a hazard to public health and safety.
Furthermore, Owner is not able to manage the removal of the building and improvements
and requests and requires that the City remove it.
NOW, THEREFORE, in consideration of the premises and of.the mutual promises and
conditions contained herein, it is agreed by the parties hereto as follows:
l.) Upon the execution of this Agreement, the City, its contractors, agents and
employees are permitted to enter upon the property and secure it. The City is permitted to
terminate and secure all utilities serving the property.
2.) The City may thereafter raze the building, the sign, the storage shed and other
improvements upon the property and remove all rubble and debris. Any personal property left
2
f
on the property shall be deemed worthless and of no value whatsoever. The City may till in
basement areas and level the surface of the excavated area. The City may remove, but shall not
be required to remove pavement from the property and seed the property.
3.) Prior to demolition, the City may conduct public safety training drills including
the Hugo Fire Department and Washington County Sheriff's Department.
4.) Owner consents to the entry of the City, its employees, consultants and
contractors upon the property to perform the work permitted hereunder and waives claims for
loss, cost or damage therefrom. When the City determines that it has completed the work, it
shall send a notice to Owner and record notice at the Office of the Washington County Recorder.
The work shall be complete not later than sixty (60) days after execution of this Agreement
barring unforeseen delays.
5.) Assessment. Upon execution of this Agreement, the Owner shall pay the sum of
$ to the City by cash or certified fiends check as a down payment. The remaining
assessment amount of $ .00 shall be certified and assessed against the property as a
lien and payable as taxes pursuant to the payment schedule set forth in the attached Exhibit B.
Owner, on behalf of itself and its successors and assigns including successors in title, waives all
notices and requirements of Minn. Stat. § 429 et. seq. and waives and releases all claims and
defenses thereunder, including the right to appeal under Minn. Stat. § 429.081. Owner certifies
that such assessment is accepted and the property is benefited by the work in at least the amount
assessed and waives challenges to it. Owner waives claims that the demolition constitutes a
taking or that the assessment is invalid.
(6.) Warranty of Title. Owner warrants and represents to the City that it is the fee
owner of the land described herein and that it has authority to execute this Development
Agreement and agree to the conditions hereof and to subject the land hereto. Owner also
represents and warrants that the use for which this development is sought will not violate any
restrictive covenants applying to the property.
(7.) Binding Effect. This Agreement shall be deemed to be a restrictive covenant and
the terms and conditions hereof shall run with the land described herein and be binding on and
inure to the benefit of the heirs, representatives, and assigns of the parties hereto, and shall be
binding upon all future owners of all or any part of the subdivision, and shall be deemed
covenants running with the land. Reference herein to the Owners, if there be more than one,
shall mean each and all of them.
This Agreement shall be placed of record so as to give notice hereof to subsequent
purchasers. The cost of said recording shall be borne by the Owner and charged against the
escrow account.
(8.) Restrictions on Transfer/Indemnitication. Owners agree to defend and hold the
City, and its officials, employees and agents, harmless against any and all claims, demands,
lawsuits, judgments, damages, penalties, costs and expenses, including reasonable attorney's
fees, arising out of actions or omissions by Owners, their employees, and agents in connection
with the Project or by the actions or demolition of the structure by the City. No transfer or
assignment shall be made without City approval and any assignment or transfer without such
approval shall be void.
(9.) Incorporation by Reference. All general and special conditions, plans, special
provisions, proposals, specifications and contracts for the play and for any improvements
furnished and let pursuant to this Agreement shall be and hereby are made a part of this
Agreement by reference as if fully set out herein in full.
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(10.) Evidence of Title. Owner shall furnish the City with evidence of fee ownership of
the property through an attorney's title opinion or title insurance policy upon request.
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OWNER
Dated:
By:
Its:
STATE OF MINNESOTA )
)ss.
COUNTY OF WASHINGTON )
On this day of , 2011, before me, a Notary Public, within and for said
County and State, personally appeared to me personally known, who, being
duly sworn, acknowledged said instrument to be her free act and deed.
Notary Public
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CITY OF HUGO
By: By:
Michael A. Ericson, City Administrator Michele Lindau, Clerk
STATE OF MINNESOTA )
)ss.
COUNTY OF WASHINGTON )
The foregoing instrument was acknowledged before me this day of
2011, by Michael A. Ericson, the Administrator of the City of Hugo, a Minnesota municipal
corporation, on behalf of said City with full authority to do so.
Notary Public
STATE OF MINNESOTA )
)ss.
COUNTY OF WASHINGTON )
The foregoing instrument was acknowledged before me this day of
2011, by Michele Lindau, the Clerk of the City of Hugo, a Minnesota municipal corporation, on
behalf of said City with full authority to do so.
Notary Public
DRAFTED BY:
David K. Snyder
Eckberg, Lammers, Briggs, Wolff& Vierting, P.L.L.P.
1809 Northwestern Avenue
Stillwater, MN 55082
651-439-28781
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EXHIBIT B
(PAYMENT SCHEDULE)
The assessments shall be payable in equal annual installments including principal and
interest extending over a period of 10 years, with interest at the rate of five percent(5%) per
annum, in the amount annually required to pay the principal over such period at such rate, the
first of said installments to be payable with general taxes for the year 2012, collectible with such
taxes during the year 2012.
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