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HomeMy WebLinkAbout2005.07.18 EDA Packet AGENDA CITY OF HUGO ECONOMIC DEVELOPMENT AUTHORIZTY MONDAY, JULY 18, 2005 - 8:30 AM HUGO CITY HALL 8:30 am 1. Call to Order 8:31 am 2. Roll Call 8:32 am 3. Approval of Minutes • EDA Meeting of June 20, 2005 8:35 am 4. Presentation from Ryland Group Inc. on Downtown Redevelopment Proposal 9:15 am 5. Presentation from Scott Montgomery on "End Zone Site" Redevelopment Plan 9:40 am 6. July 11, 2005 RFP Subcommittee Report 10:20 am 7. Update of July 12, 2005 Meeting of the TIF Subcommittee • Egg Lake Redevelopment Plan 10:30 am 8. Adjournment BACKGROUND MEMO FOR EDA MEETING OF JULY 18, 2005 3. JUNE 20, 2005 EDA MEETING MINUTES City staff recommends the board approve the minutes for the June 20, 2005 meeting as presented. 4. PRESENTATION FROM RYLAND GROUP INC. ON THE DOWNTOWN REDEVELOPMENT PLAN The Ryland Group Inc. is interested in working with the city to redevelop the Hugo downtown area. The Ryland Group would like to redevelop the downtown into a pedestrian friendly town center with would include a mix of office space, retail and residential uses. Ryland intends to adhere to the city's recently completed downtown plan and the proposed design guidelines for the district. Chris Enger of Ryland Homes will give a presentation to the EDA on their development proposal. City staff seeks direction from the EDA about whether to proceed with Ryland Group as the master developer for the downtown for downtown Hugo. 5. PRESENTATION FROM SCOTT MONTGOMERY ON THE END ZONE PROPERTY REDEVELOPMENT PLAN Scott Montgomery of Kelmont would like to redevelop a series of parcels fronting the east side of Hwy 61 south of 140`h St N into a mix of office space and residential uses. The proposed location currently contains single family homes on large lots and the former End Zone Bar and motel property which has been abandoned and left in a state of disrepair. He already owns some of the parcels at the location and is in negotiation to obtain the remaining parcels including the "End Zone"property. Scott Montgomery will give a presentation to the EDA on their redevelopment plan for the site. 6. UPDATE ON JULY 12,2005 MEETING OF THE TIF SUBCOMMITTEE At its last meeting the EDA directed the TIF subcommittee, consisting of Mike Granger, Nick Skarich, and Theresa Carpentier, to establish preliminary Tax Increment Financing (TIF) boundaries for the downtown redevelopment district and create a plan for the establishment of the district. City staff, Mikaela Huot of Springsted, and the subcommittee met on July 12, 2005. Theresa Carpentier was unable to attend. The subcommittee identified the parcels that should be included in the TIF district. The subcommittee also discussed the subsequent procedure for conducting blight examination and substandard tests to determine if the district would qualify under state law for the establishment of a TIF district. City Staff and subcommittee members will provide a summary of the meeting to the EDA on the proposed boundaries and discuss the next steps. 7. JULY 11,2005 RFP SUBCOMMITEE REPORT With direction from the EDA and city council, staff previously sent out a request for proposal (RFP) for the development of the city owned property at the northeast corner of Fenway Blvd and Fenway Blvd Circle in the Bald Eagle Industrial Park (BEIP). City staff has also been in contact with three businesses that have expressed interest in the recently reacquired "Rink- Tec"property on Fenway Blvd. Circle in the BEIP. At its last meeting on July 11, 2005, the RFP subcommittee met with the four businesses that submitted RFP's for both properties in the Bald Eagle Industrial Park. Subcommittee member Theresa Charpentier was absent but she did review the proposals and submit comments for review by the subcommittee prior to the meeting. The subcommittee listened and reviewed four proposals for the development of the two sites and city staff reviewed an additional proposal from another business interested in the Rink-Tec site earlier in the day. The five proposals were put together very well and each business could benefit the city by locating in the BEIP. City staff will provide a summary of the RFP meeting and the recommendations of the RFP sub-committee. Staff requests direction from the EDA in the form of a motion to the city council as to which businesses to enter into purchase agreements with for the city owned properties. MINUTES FOR THE EDA MEETING OF JUNE 20, 2005 The meeting was called to order by Mayor Fran Miron at 8:30 am. Present: Miron,Arcand, Bever, Klein, Skarich Absent: Charpentier, Granger City Administrator, Mike Ericson Community Development Director, Bryan Bear 2. EDA MEETING OF MAY 16,2005 City staff recommends the Board approve the minutes for the May 16, 2005 meeting as presented. Klein made motion, Bever seconded to approve the minutes for the May 16, 2005 meeting as presented. All aye. Motion carried 3. DISCUSSION OF RFP'S FOR LOT 1,BLOCK 1,BEIP 5TH ADDITION With direction from the EDA and City Council, staff prepared an RFP and sent it to over 50 developers,posted it on the City's website,the League of Minnesota Cities website, and listed it on the Minnesota Commercial Realtors Property Database. The staff has received numerous promising phone calls in response to the RFP,however,by the May 27, 2005 deadline, staff had only received two formal responses. The BEEP subcommittee (Granger, Skarich, Klein) has not reviewed the information so far. Staff presented four proposals to the EDA, and the subcommittee was directed to review the proposals and return to the EDA with a recommendation July 18, 2005. Miron made motion, Klein seconded directing the subcommittee to bring back a recommendation. All aye. Motion carried. 4. DISCUSSION OF RINK-TEC PROPERTY The so-called "Rink-Tec"property is Lot 3,Block 1, of the Bald Eagle Industrial consisting of approximately one acre of land. A company known as "Rink-Tec" bought the property from the City,however the contract required that that building be under construction by May 30, 2004. At the request of Rink-Tec, the City Council extended the construction date for one year, which has now expired as of May 30, 2005. At the June 6, 2005 City Council meeting, the Council directed the staff to buy the property back from Rink-Tec, a process which is currently under way. The staff has been in contact with two businesses who have expressed interest in the property. Staff presented information related to the two businesses to the EDA. The EDA directed to BEIP subcommittee review the Rink-Tec requests along with the requests for Lot 1, Block 1, to find the best tenant mix for the two properties. The subcommittee will report back on July 18, 2005. 5. DISCUSSION OF EGG LAKE REDEVELOPMENT PLAN The City staff provided the EDA with an update of progress toward the purchase of the Powell Residence and the old antique store. In addition,the staff has been working with three companies who are interested in constructing senior housing as a part of the Egg Lake Plan. The staff presented this information to the EDA. 6. DISCUSSION OF DOWNTOWN REDEVELOPMENT The staff has had recent discussions with key property owners in the downtown area and is ready to proceed with direction from the EDA to initiate a TIF District for areas near the downtown. The staff will update the EDA with the latest information related to the Downtown Design Guidelines. The staff also is prepared to initiate a Market Study for the downtown. The staff presented redevelopment ideas to the EDA from a major development company. Klein made motion, Skarich seconded to invite the developer to make a presentation at the July 18, 2005 meeting. Miron made motion, Klein seconded to direct staff to invite Marvin LaValle and Pete Sampair to the meeting. All aye. Motion carried. 7. UPDATE ON EAST METRO ECONOMIC DEVELOPMENT FORUM On June 16, 2005, City Administrator Mike Ericson, CD Director Bryan Bear EDA members, Klein, Miron, Bever and Arcand as well as Council members and HBA members attended the forum at the Machine Shed Restaurant in Lake Elmo. Staff and EDA members shared information from the meeting. 8. ADJOURNMENT Arcand made motion, Skarich seconded to adjourn the meeting at 10:30 All aye. Motion carried. CITY OF HUGO COMMUNICATIONS LIST JUNE 2005 Economic Development Authority Name Term Expires Fax Number Home Phone Address E-Mail Address Office Phone Fran Miron, President 15250 Homestead Ave. 12-31-2006 (651)429-5961 Hugo, MN 55038 Michael E. Granger (651)426-8171(home) 12715 Ethan Ave. N 12-31-2008 (651)653-4631 (651)653-4648(work) White Bear Lake, MN 55110 megranger(d.)usinternet.com (612)805-5751 (cell) Jan Arcand, Treasurer 1850 Cedar Avenue, 12-31-2006 (651)653-6402 (651)429-2930 White Bear Lake, MN 55110 Jim Bever (651)426-2240(home) 7131 132"d St. N 12-31-2008 (651)426-5809 (651)307-3578(cell) White Bear Lake, MN 55110 Theresa Charpentier (651)426-6725(home) 5925 Freeland Court North 12-31-2007 Theresa.Charpentier(a)toro.com (952)887-8814(office) Hugo, MN 55038 (651)245-1193(cell) Phil Klein, Vice President 6760165 th St. 12-31-2009 Phillip.kleinCcDnorthstarfinancial.com (651)653-7152 Hugo, MN 55038 Nick Skarich (612)851-4920 6265 Egg Lake Rd. N 12-31-2010 nskarich(cDnorthlandsecuhties.com (651)429-3463 Hugo, MN 55038 CITY STAFF: Community Development Director Bryan Bear— Executive Director City Administrator Mike Ericson — Secretary Finance Director Ron Otkin — Assistant Treasurer :\Communication List\EDA Communication List.doc f MINUTES FOR THE HUGO CITY COUNCIL MEETING JULY 18, 2005 Mayor Fran Miron called the meeting to order at 7:15 pm. PRESENT: Granger, Haas, Petryk, Puleo, Miron City Administrator Mike Ericson; CD Director Bryan Bear; City Attorney Dave Snyder; City Engineer Jay Kennedy; PW Director Chris Petree; and City Clerk Mary Ann Creager MINUTES FOR CITY COUNCIL MEETING OF JUNE 28, 2005 Miron made motion, Granger seconded, to approve the minutes for the City Council meeting of June 28, 2005 with the open house for the youth center as amended with attendance by Council member Puleo. All aye. Motion Carried. MINUTES FOR CITY COUNCIL MEETING OF JULY 5, 2005 Haas made motion, Granger seconded, to approve the minutes for the City Council meeting of July 5, 2005 as presented. All aye. Motion Carried. MINUTES FOR THE EXECUTIVE SESSION OF JULY 5 2005 Petryk made motion, Haas seconded, to approve the minutes for the executive session of July 5, 2005 as presented. All aye. Motion Carried. APPROVAL OF AGENDA Remove I.1 from discussion—Report on Community Food Shelf Remove I.2 from discussion—Distribution of City Newsletter Add L.I —Resident Request for Truck Traffic Signs on CSAH8 Miron made motion, Petryk seconded, to approve the agenda for July 19, 2005 as amended. All aye. Motion Carried. CONSENT AGENDA Haas made motion, Petryk seconded, to approve the following Consent Agenda: Approval of Claims Approve Purchase of Right-of-Way and Ponding Easements for Oneka Parkway(J.R.Johnson) Approve Resolution to MNDOT for Speed Study on 132nd Street Approve Application for On-Sale Liquor License for Wilson Tool Picnic(Hugo Lions) Approve Annual Performance Review for Public Works Director Chris Petree City Council meeting of July 18, 2005 Page 2 Approve LGU Permit for the CSAH 8/14 Reconstruction Project Approve LGU Permit for Oneka Parkway Project Approve Hiring of David Greeder as the Public Works Mechanic Approve Screening Plan for Schwieters Properties All aye. Motion Carried. APPROVAL OF CLAIMS Adoption of the Consent Agenda approved the claims roster for July 18, 2005 as presented. APPROVE PURCHASE OF RIGHT-OF-WAY AND PONDING EASEMENTS FOR ONEKA PARKWAY P.R.JOHNSON) At its July 5, 2005 meeting, City staff informed Council that they had successfully negotiated the purchase of ponding and right-of-way easements for Oneka Parkway with property owner J.R. Johnson. Council directed staff to bring back a final draft of the settlement for approval by Council at the next regularly scheduled meeting. Washington County Right-of-Way Agent Sharon Price and City Attorney Dave Snyder drafted the letter of agreement with Mr. Johnson,which lays out the terms and conditions by which the City will purchase the necessary property for Oneka Parkway. Adoption of the Consent Agenda approved the purchase of right-of-way and ponding easements from Mr. J.R. Johnson in the amount of$896,193.00. APPROVE RESOLUTION TO MNDOT FOR SPEED STUDY ON 132 ID STREET In June 2005, Council accepted the citizens' request for a speed study on 132"d Street. As part of the official request to MNDOT, the City is required to adopt the resolution thereby officially making the request on behalf of the City. City Engineer Jay Kennedy prepared a resolution to MNDOT for an official request on behalf of the City of Hugo for a speed study on 132nd Street. Adoption of the Consent Agenda adopted Resolution 2005-39 thereby requesting a speed study on 132nd Street. APPROVE APPLICATION FOR ON-SALE LIQUOR LICENSE FOR THE WILSON TOOL PICNIC (HUGO LIONS) Wilson Tool submitted an application to the City for an on-sale liquor license for the distribution of 3.2 beer at its annual picnic. The Hugo Lions have officially solicited the liquor license under their annual liquor license issued by the City. City staff reviewed the application, along with necessary liquor liability insurance. Adoption of the Consent Agenda approved the on-sale liquor license for Wilson Tool, with distribution by the Hugo Lions, at the Wilson Tool Annual Picnic. APPROVE ANNUAL PERFORMANCE REVIEW FOR PUBLIC WORKS DIRECTOR CHRIS PETREE Chris Petree was hired by the City of Hugo on July 19, 1999. Over the past six years, Chris has worked hard and diligently in his role as the City's first ever Public Works Director. His diligence and project City Council meeting of July 18, 2005 Page 3 management skills culminated in the completion of the city's new 19,200 square foot public works facility in January 2005. With the grand opening scheduled for August 4, 2005, the City is very proud of the dedication and leadership exhibited by Chris for the past six years. To organize, equip, and construct a brand new public works department in a time-span of three years has been an incredible accomplishment. Chris' hard work, attentive eye to detail, and thoroughness in completion of all duties makes him an excellent public works director. Adoption of the Consent Agenda approved the annual performance review for Public Works Director Chris Petree. APPROVE LGU PERMIT FOR THE CSAH 8/14 RECONSTRUCTION PROJECT A Wetland Replacement Plan was submitted by Washington County on May 9, 2005, as required by the Wetland Conservation Act(WCA). The City is the Local Government Unit (LGU) for the WCA and thus makes determinations on wetland applications. The application includes wetland mitigation plan for the off-site replacement of the 2.42 acres of wetland impact associated with the CSAH 8/14 reconstruction project. Adoption of the Consent Agenda approved the above-mentioned wetland mitigation plan application, as described within. APPROVE LGU PERMIT FOR ONEKA PARKWAY PROJECT Staff recommended that Council approve the Wetland Mitigation and Water Resource Management LGU permit for the Oneka Parkway project, as defined in Council packet. The application includes wetland mitigation plan for 0.8 acres of impact associated with the proposed Oneka Parkway project and compliance with City storm water management, construction site erosion control, and floodplain mitigation requirements. Adoption of the Consent Agenda approved the Wetland Mitigation and Water Resource Management LGU permit for the Oneka Parkway project. APPROVE HIRING OF DAVID GREEDER AS THE PUBLIC WORKS MECHANIC On April 8, 2005, Council authorized staff to advertise for the hiring of a mechanic in the public works department. After receiving twenty-seven applications for the position, City staff interviewed ten of the applicants, of which four were selected for second interviews. The interview team included Public Works Director Chris Petree, Public Works Lead Worker Tom Smith, and City Administrator Mike Ericson. Staff is pleased to recommend the selection of David Greeder, a Hugo resident, to fill the position. Adoption of the Consent Agenda appointed David Greeder as the City's new Public Works Mechanic at a starting rate of$18.26 per hour, with the standard pre-employment physical and six month probationary period. APPROVE SCREENING PLAN FOR SCHWIETERS PROPERTIES On May 16, 2005, Council approved a site plan for Schwieters Properties for a 45,000 square foot building and related site improvements on property located in the Bald Eagle Industrial Park. The applicant was required to present a plan detailing screening of all exterior storage areas. The Planning Commission reviewed the screening plan at its meeting on June 23, 2005, and unanimously recommended approval of the plan. Adoption of the Consent Agenda approved the screening plan for Schwieters Properties located in the Bald Eagle Industrial Park. City Council meeting of July 18, 2005 Page 4 REVIEW DESIGN PROPOSALS FOR I-35E AND CSAH 14 INTERCHANGE Assistant Anoka County Engineer Lyndon Robjent was in attendance at the Council meeting to provide Council with a PowerPoint presentation of suggested I-35E/CSAH 14 interchange designs to reflect an engineering analysis of traffic patterns both north, south, east and west. The changes are needed because traffic volume is expected to triple within 30 years. Council felt it important to make a financial commitment up front to indicate Hugo's sincere intent to insure improvements are done expeditiously. Finance Director Ron Otkin will look at the long-range funding options available to the City. Council will be discussing this issue at the I-35E/14 W/E Coalition meeting to be held on July 21, 2005. REQUEST TO MNDOT FOR RESTRIPING OF TH61/13011H STREET INTERSECTION At its July 5h, 2005 meeting, Council discussed the response letter from MNDOT regarding the City's original request to review the lighting and by-pass lane on Trunk Highway 61 at the intersection of 1300' Street. City Engineer Jay Kennedy was directed to consult with MNDOT officials whether or not the conversion of the by-pass lane to a right-turn-only lane was the best solution for vehicular traffic on TH61. City Engineer Jay Kennedy provided Council with an update stating that MNDOT will be creating a right-turn lane for northbound traffic on TH61 at 13001 Street. Council again discussed applying for a traffic signal at the intersection, but did not feel that the TH61/13001 Street would meet MnDOT's warrants for signalization. Miron made motion, Petryk seconded, to table the application for a Cooperative Agreement to install a traffic signal at TH61 and 13001 Street. All aye. Motion Carried. UPDATE ON BUSINESS RFP'S FOR BALD EAGLE INDUSTRIAL PARK On Monday, July 11,2005, a Request For Proposal Committee, consisting of Community Development Director Bryan Bear, EDA Commissioner Nick Skarich, City Council Member Mike Granger, Community Development Intern Andrew Gitzloff, and City Administrator Mike Ericson interviewed four business proposals who wish to relocate their businesses in the BEIP on both the 3.3 acre parcel of land and the former Rink-Tec property in the BEIP 50 Addition. City staff provided Council with the recommendations from the EDA, who met on July 18, 2005 and recommended the selection of two excellent family-owned and quality businesses seeking relocation to the City, R.A. Pearson and Associates and Oneka Pet Resort. Miron made motion, Petryk seconded, directing staff to enter into Purchase Agreements with R.A. Pearson and Associates and Oneka Pet Resort for property in the BEIP and to present to Council for approval. Staff is directed to continue discussion with the two interviewed businesses, as well as the late-arrived RFP in an effort to find them property in the City to relocate their businesses. All aye. Motion Carried. r City Council meeting of July 18, 2005 Page 5 UPDATE ON WATER LEVEL OF RICE LAKE (JULY 8,2005 DNR MEETING) On Friday, July 8, 2005, Mayor Fran Miron and City Administrator Mike Ericson attended a meeting at the MnDNR's office, along with RCWD officials. Mayor Fran Miron provided Council with an update on the discussions regarding the water levels of Rice Lake and stated that another meeting will be held at some future time with DNR Commissioner Brad Moore. Haas made motion, Puleo seconded, directing City staff, City Attorney Dave Snyder, and Council members Frank Puleo and Mike Granger to attend the future meeting. All aye. Motion Carried. AUTHORIZATION TO RECEIVE BIDS FOR DEMOLITION OF WATER TOWER In the summer 2004, Council agreed to delay receipt of bids for the demolition of water tower#1 until the Public Works Department had completed its move out of the old City Hall and the Washington County Sheriff's Department had an opportunity to relocate its communication equipment. Public Works Director Chris Petree stated that the tower has not been in service for three years and is in need of maintenance, inside and out. Council member Granger stated that the City should get some firm numbers as to future costs to the City should the tower remain standing, as well as getting a recommendation from the Historical Commission. Miron made motion, Granger seconded, to table this matter to allow the Historical Commission to make a recommendation for Council consideration. City staff is directed to obtain a quote to paint and preserve the tower, as well as itemize ongoing costs, including insurance. All aye. Motion Carried. AUTHORIZATION TO RECEIVE BIDS FOR DEMOLITION OF OLD CITY HALL Since January 2005, the City's old city hall has been vacant and is currently used as a storage space for the City's building inspection trucks and a satellite office for engineering inspection crews from WSB Engineers. As Council is aware, the west side of the roof is in very poor condition and has resulted in extensive water damage and mold and mildew inside the building. Granger made motion, Puleo seconded, directing staff to receive bids for the demolition of the old city hall building. All aye. Motion Carried. CONDITIONAL USE PERMIT AND VARIANCE REQUESTS FOR CINGULAR WIRELESS TELECOMMUNICATIONS TOWER(15380 KEYSTONE AVENUE NORTH -BRANDT PROPERTY) Cingular Wireless is proposing the construction of a 190-foot high communications tower located near City Council meeting of July 18, 2005 Page 6 the intersection of 152nd Street and Keystone Avenue. Communication towers are allowed in the Agricultural District with the approval of a Conditional Use Permit. The proposed tower does not meet the required setbacks from a residential structure and from a property line; therefore, two variances are requested. Based on information provided by the applicant, City staff is of the opinion that the application does not comply with the City's Antenna Ordinance. In addition, the criteria that must be satisfied in order to grant variances have not been met. Staff recommended denial of the application to the Planning Commission on July 14, 2005. CD Director Bryan Bear provided a background of the application, which was submitted in March 2005. The applicant has requested a 30-day extension to allow them additional time to provide requested information, and that extension was recommended for approval by the Planning Commission. The Council had before them for consideration a resolution approving findings of fact denying a variance for a property line setback; the application would have two parts remaining: 1)variance for setback from a residence; and 2) approval of a CUP allowing installation of the tower. City Attorney Dave Snyder stated that if Council granted the 30-day extension, the application would need to be addressed at its meeting of August 1, 2005, as the following regular meeting(8/15/05)would be outside of the 30-day extension timeframe. Miron made motion, Haas seconded,to adopt RESOLUTION 2005-40 APPROVING FINDINGS OF FACT DENYING A VARIANCE FOR CINGULAR WIRELESS FOR A PROPERTY LINE SETBACK FOR A 190-FOOT TOWER AT 15380 KEYSTONE AVENUE. VOTING AYE: Granger, Haas, Petryk, Puleo, Miron Motion Carred. Miron made motion, Granger seconded, to approve the 30-day extension requested by Debra Weis, representing Cingular Wireless, extension commencing July 14,2005, and schedule a public hearing for August 1, 2005 to consider the balance of the application. Property owners within 1,000 ft of 15380 Keystone Avenue will be notified of the public hearing. All aye. Motion Carried. TRUCK TRAFFIC ON CSAH 8 City Administrator Mike Ericson received a verbal communication from a resident regarding the traffic hazard being created by trucks on CSAH 8, as a result of construction activity. Council discussed possible traffic signs that could be installed to prevent a safety problem. Miron made motion, Granger seconded, directing staff to contact Washington County and develop traffic control measures/signage on CSAH 8. All aye. Motion Carried. ADJOURNMENT Puleo made motion, Granger seconded, to adjourn at 9:55 pm. All aye. Motion Carried. j RYLAND -- - --- -A R 2 i 2005 April 22, 2005 Mr. Mike Ericson City Administrator City of Hugo 14669 Fitzgerald Ave. N. Hugo, MN 55038 Re: Redevelopment references and examples of Letters of Intent designating Master Redeveloper Dear Mike: Thank you for a very productive meeting Thursday morning. As I agreed at the meeting, I have contacted both Kirk McDonald of New Hope and Bob Schreier of Brooklyn Park. In addition to many other Cities where we do redevelopment and new development, we are currently underway with redevelopment in both New Hope and Brooklyn Park. In New Hope, we are finishing up Winnetka Green and are in the RFQ process for another development next to the City's golf course. Both Kirk(763) 493-8060_and Bob (763) 531-5100 said they would be very happy to talk with you about their partnership in redevelopment with Ryland. I am enclosing copies of term sheets and Letters of Intent from both communities. I would be glad to draft a Letter of Intent for Hugo to get things going, if you wish. We are working on a new community based concept plan for Hugo, incorporating the ideas we discussed that we should have complete within a week or so. lea call if you have any questions in the meantime. We will be in touch with you. S rely, ­Nw""'�`"°°`:. W100v is Enger Land Resourc anager Ryland Homes Twin Cities Division October 25, 2004 Mr. Chris Enger Ryland Homes Twin Cities Division 7600 Executive Drive Eden Prairie, MN 55344 Subject: Ryland's Preferred Developer Status Dear Mr. Enger: In light of the New Hope Economic Development Authority's(EDA) decision not to go forward with Winnetka Green Phase 3, I want to inform you the New Hope EDA is still intending to work with Ryland Homes as a preferred housing developer for the Phase One City Center Development at the southeast corner of 42nd and Winnetka avenues for a one-year period per the Phase 3 Term Sheet. Ryland's performance on the development of Winnetka Green has exceeded all expectations. We also understand Ryland expended considerable time, resources, and funds in anticipation of the EDA's approval of the Phase 3 development. The concerns expressed by the adjacent neighborhood to the Phase 3 development regrettably caused the EDA to forego the Phase 3 development. Its decision was unrelated to Ryland's performance on Winnetka Green Phases 1 and 2. The city has not changed its support for Ryland as a preferred housing developer for a portion of the Phase One City Center Development as stated in the Phase 3 Term Sheet. If the redevelopment of City Center is retained by the New Hope EDA as a viable project in 2005, 1 will recommend to the EDA that it formally approve Ryland as a preferred housing developer for the Phase One City Center Development for a one-year period per the Winnetka Green Phase 3 Term Sheet. Rest assured, the New Hope EDA values its relationship with Ryland Homes. Thank you for Ryland's investment in the future of New Hope. We look forward to continuing our relationship with you and Ryland Homes. Sincerely, Daniel J. Donahue City Manager/Executive Director City of New Hope and New Hope EDA CITY OF NEW HOPE 4401 Xylon Avenue North•New Hope,Minnesota 55428-4898•www. ci.new-hope.mn.us City Hall:763-531-5100•Police(non-emergency):763-531-5170•Public Works: 763-592-6777•TDD: 763-531-5109 City Hall Fax: 763-531-5136•Police Fax: 763-531-5174 •Public Works Fax: 763-592-6776 KRASS MONROE , P . A . ATTORNEYS AT LAW Gay Greiter,Esq. James R Casserly,Esq. Email:ggreiter@k,assmonroe.com Emailjcasserly@.krassmonroe.com Direct(952)885-4393 Direct(952)885-1296 MEMORANDUM To: City of New Hope Attn: Kirk McDonald, Community Development Director From: Gay Greiter, Esq. James R. Casserly, Esq. Date: January 16, 2004 Re: E. Winnetka—Summary of Redevelopment Agreement with Ryland Our File No. 10048-18 At your request, we have prepared the following summary of the principal terms of the Authority's proposed redevelopment agreement with Ryland for the Council's review at its work session on January 20, 2004. Gay will plan to attend the work session and will be available for questions. • Timing of land sales to Ryland Three separate conveyances of land are planned, all slated to occur within calendar year 2004. The first (the "Model Phase") will occur by April 15 and will be of two tracts of land along Winnetka already owned by the City so that Ryland can build models of each of the two planned housing types,the Heritage Condominiums and the Carriage Townhomes. These two tracts will probably consist of 5518 to 5532 (3 parcels) and 5406 to 5422 (6 parcels). This will be followed by phased conveyances of the rest of the site, "Phase I" and"Phase II". Phase I will be delivered to Ryland between June I and July 1 and will consist of either the rest of the property along Winnetka or the property along Bass Lake Road, depending on which area the EDA is able to fully acquire first. Phase II, all remaining property, will be delivered by September 1. 8000 NORMAN CENTER DRIVE,SUITE 1000 •MINNEAPOLIS,MINNESOTA 55437-1178 TELEPHONE 9521885-5999•FACSIMILE 952/885-5969 www.krassmonroe.com If the Authority is able to acquire all of the remaining parcels quickly, the sale of Phase 11 could be moved up or even combined with Phase I. The four parcels on the corner of Winnetka and Bass Lake Road(5540, 5550, 7809 and 7801) can be delivered with either Phase I or Phase H, depending upon speed of acquisition by the Authority. • Ryland's feasibility period The Authority and Ryland are negotiating the redevelopment agreement and expect to execute the agreement or have reached substantial agreement on its terms by January 26. The agreement will be subject to the approval of Ryland's Land Committee at its meeting on February 20. Ryland will also have until April 15 to monitor the Authority's progress in acquiring the rest of the parcels in the site and relocating residents so that Ryland can satisfy itself that the Authority will be able to convey the site and construction can begin on schedule. This does not require the Authority to be in title to all remaining parcels by April 15. If Ryland is not satisfied with the Authority's progress as of April 15,it may terminate the agreement. • When Ryland pays for the land Ryland will pay the Authority$12,500 per housing unit for the land. The total land sale price, based on the number of units in the approved site plan,will be paid to the Authority in cash on the following schedule: June 1/July 1,2004(closing on Phase 1)....................10%of total land sale price September 1 2004(closing on Phase 10% " December 1, 2004.......................................................16% « March 1,2005 .............................................................16% « June 1,2005.................................................................16% « September 1,2005.......................................................16% « December 1,2005 16% " TOTAL......................................................................100% • Page 2 • Obligations of the Authority and Ryland The Authority and Ryland will have the following obligations: The Authority grees to: • Create a tax increment financing district(already done) • Acquire parcels not yet owned by the City by purchase or condemnation, if necessary • Deliver each phase to Ryland by the dates specified above • Vacate the portion of Sumter Avenue that lies within the site • Demolish and remove all buildings,basements and driveways • Perform any environmental cleanup required for residential construction(probably only an issue for the former gas station site at 5550 Winnetka) • Provide water and sewer to the edge of the redevelopment • Keep applicable City fees constant until October 31,2005 Ryland agrees • Pay the City for the land according to the schedule described above • Furnish a letter of credit as security for its land payment obligation • Demonstrate ability to finance project construction • Obtain any necessary rezoning, permits and approvals and observe other governmental requirements,including bonding • Pay customary City fees for approvals and construction • Use best efforts to preserve large trees on the site • Build according to approved construction plans and housing product specifications • Complete all construction by December 31,2006 • Construction Timing Upon delivery of a phase to Ryland, Ryland will require 3-4 months to develop the land and another 4-5 months to complete construction. Somewhat less time will be required for the Model Phase. The first units in the Model Phase should be completed in early fall. Whether those units can be sold at that time will depend upon whether water and sewer are available. G:\WPDATAWWEW HOPE\18\COMMCDONALD GG 03.DOC 0 Page 3 Date: April 8, 2003 Mr. Kirk McDonald Community Development Director City of New Hope 4401 Xylon Avenue North New Hope, MN 55428 Re: Sale of approximately 25 acres of land in the southeast quadrant of the intersection of Bass Lake Road and Winnetka Ave. in New Hope, Minnesota Mr. Kirk McDonald: Pursuant to our recent discussions concerning Ryland's interest in purchasing Approximately 25 acres of land at the southeast quadrant of the intersection of Bass Lake Road and Winnetka Ave. from the City of New Hope, Minnesota,this letter shall serve as a letter of intent, whereby The Ryland Group, Inc. ("Ryland") extends the following proposal to the Seller outlining the terms and conditions under which Ryland would consider entering into an agreement to purchase the real estate described above and generally depicted on Exhibit A attached hereto (collectively, the "Property"). The terms of the agreement would be generally structured as follows: 1. Delineation of Property: A surveyor selected by Ryland shall perform an ALTA extended boundary survey of the Property(the "Survey") within thirty (30) days of the complete execution and delivery of a contract executed by both parties. The Survey shall comply with ALTA/ACSM standards for a Grade A survey, and shall also indicated the net acreage of the Property (the difference between the gross acreage of the Property and the acreage of the Property lying within areas subject to canals, laterals, ditches, retention areas, rights-of-way, flood plain, and easements for roads and utility lines and pipelines other than those serving only the Property. The Survey shall be prepared at Seller's expense. 2. Purchase Price: The purchase price for the Property("Purchase Price") shall be Dollars ($ .) The Property shall be transferred and paid for at two separate closings. The first closing shall be for not less than 12 net acres of the Property as selected by Ryland, and the second closing shall be for the balance of the Property. The first closing shall occur within 30 days following the satisfaction of the conditions precedent, and the second closing will occur not more than 12 months after the first closing. 3. Deposit: Ryland will place the sum of Twenty-five Thousand Dollars ($25,000) in the form of an irrevocable letter of credit in escrow with, (the "Escrow Agent") at the time of execution of the contract. Ryland's liability for non-performance shall be limited to the amount of the deposit. The deposit will be held pursuant to escrow instructions and other provisions incorporated in the contract and shall be applied to the Purchase Price at the time of the [first] closing. 4. Feasibility Period: Seller shall deliver to Ryland, within five (5) days after the complete execution and delivery of the contract, all documents or materials in Seller's possession or control regarding the Property including, without limitation, planning and zoning documents, contracts, surveys, title reports, soil tests, environmental assessments,building plans, analyses and engineering studies and data, except for documents containing confidential or proprietary information relation to the Seller. Ryland shall have a period of 120 days after the complete execution and delivery of the contract (the"Feasibility Period")to examine title to the Property and conduct such marketing, economic, feasibility, and physical inspections as Ryland deems necessary or prudent to determine the suitability of the Property for Ryland's use. Such matters which Ryland may examine or review may include,by way of example and without limitation, physical conditions (including soil tests, environmental assessments, and wetlands review); the access to public roadways to and from the Property; the availability of permits; the suitability of existing zoning; recorded easements, covenants, conditions and restrictions;the availability of electric, natural gas water, cable television, storm sewer, and sanitary sewer services; and reports and analyses related to economic feasibility. 5. Conditions Precedent: Ryland's obligation to settle on the purchase of the Property shall be contingent on: final approval of a preliminary plat of a subdivision of the Property, any necessary zoning changes from the appropriate governmental authorities to allow for the development of the Property into a minimum of 206 residential lots, and the acquisition of suitable easements or governmental consents related to utility services. The property shall have a clean PhaseI and Phase II Environmental or shall be mitigated if necessary as recommended by the Environmental Reports. There shall be no existing or pending assessments against the property and no "off-site" costs. All existing structures shall be removed from the site, basements and excavations filled; the site graded smooth and left in a readily developable state by the Seller. With your affirmative response, we will instruct Ryland's attorney to prepare a contract in accordance with the terms outlined herein. By executing this letter of intent, the parties agree to make good faith efforts to agree on a contract of purchase and sale. Nevertheless, neither party shall be under any binding obligation until such time as a mutually agreeable contract is fully executed by the appropriate officers/partners in each of our organizations. In addition to other required procedures, Ryland must obtain necessary internal approvals prior to delivering any nonrefundable earnest money. Seller agrees not to market the Property or entertain any offers to purchase the Property from others until the earlier to occur of(a) the date on which the parties mutually determine that they cannot reach agreement on a contract or (b) 30 days from the date after which Seller countersigns this Letter of Intent. If we do not receive from you a countersigned copy of this letter within days of the date hereof, then the terms of this letter shall be deemed null and void. Please fell free to contact us with any questions or comments that you may have regarding these matters. Thank you for providing Ryland with this business opportunity. Sincerely, Chris Enger Land Resources Manager The Ryland Group, Inc. By: Name: Chris Enger Title: Land Resources Manager The City of New Hope, Minnesota,the Seller named above, hereby agrees to sell the Property to Ryland and to cease marketing the Property in accordance with the above terms and conditions, subject to the signing of a mutually agreeable contract of sale incorporating the above terms. The City of New Hope, Seller By, Name: Title: TERM SHEET 1. Redeveloper: Ryland Homes, Inc. 2. Seller: The Brooklyn Park Economic Development Authority. 3. Property: The original phase II Hunt property, as depicted and legally described on Exhibit A attached hereto. The property will be sold in its "as is" condition. The property will be sold in one or two phases as determined by the parties. The Authority is in the process of acquiring a portion of the property (the "Triangle Parcel") pursuant to a "swap" agreement with a third party, and the Authority's obligation to convey the Triangle Parcel shall be contingent upon of its acquisition of the same. The Authority agrees to use best efforts to complete the acquisition of such property. 4. Purchase Price: $708,000 payable in full on the closing date. 5. Earnest Money: Ten percent of the purchase price, remainder payable at closing. 6. Due Diligence Period: Ninety days. 7. Redeveloper Conditions: a. Title b. Environmental C. Planning approval 8. Authority Conditions: a. Adequate Redeveloper financing (both site development and construction) b. Site development contracts executed C. Development agreement with City executed d. Approval of construction plans e. Execution of assessment agreement f. Acquisition of the Triangle Parcel 9. Assessment Agreement: The property shall be subject to an assessment agreement the value of which will be no less than the estimated fair market value of the property upon its completion (phased as applicable). The Assessment Agreement will terminate upon each unit sale. 10. Closing Date: No later than 11. Developer Covenants: a. Property platted no later than days after the closing date b. No less than housing units built in accordance with approved plans upon the following schedule: CA\DOCUMENTS AND SETTINGS\CENGER\LOCAL SETTINGS\TEMPORARY INTERNET FILES\OLKA\RYLAND TERM SHEET 8-2-04.DOC 12. HousingPlans: Housing plans must be agreed to in principal between Redeveloper and the Authority prior to execution of any binding documents. 13. Reverter: The Agreement will include a reverter that if a Redeveloper event of default occurs, which is not cured on or before the applicable cure period, the property shall automatically revert to the Authority. The reverter will be enforced through the filing of a Redeveloper deed, which the Authority will hold in escrow. Upon such occurrence, the Authority will use reasonable efforts to resell the property for similar housing purposes. Sales proceeds in excess of(i) the fair market value of the property at the time of sale to Redeveloper less the purchase price and (ii) the Authority's costs to reclaim the property (both legal and administrative from the closing date), will be paid to Redeveloper. 14. Letter of Credit: Redeveloper will obtain an irrevocable letter of credit from a lending institution reasonably acceptable to the Authority in a minimum amount necessary to cause completion of the site development. The amount of the letter of credit may be reduced as site development progresses. The balance of the letter of credit will be released upon completion of the site improvements. 15. Debt: The Redeveloper will not be permitted to encumber the property with any debt or other encumbrances without the approval of the Authority. The Authority will permit site development debt on the entire site (or such applicable portions), and construction debt only on those portions of the property that are being currently developed. The Authority will subordinate the Agreement to such approved debt. 16. Fees: Redeveloper will be responsible for paying all of the Authority's legal and administrative fees associated with the redevelopment. Upon execution of a term sheet or letter of intent, the Redeveloper will deposit with the Authority the sum of$10,000. It will thereafter periodically be required to deposit additional sums of $10,000 as reasonably determined by the Authority to be necessary to cover additional legal and administrative expenses. 17. Miscellaneous: a. Standard representations and warranties from Redeveloper and the Authority b. Closing costs—standard and customary C. No transfer of property or agreement without Authority consent d. Indemnification CADOCUMENTS AND SETTINGS\CENGER\LOCAL SETTINGMTEMPORARY INTERNET RLEMOLKA\RYLAND TERM SHEET 8-2-04.DOC EXHIBIT A REDEVELOPMENT PROPERTY [LEGAL DESCRIPTION AND DEPICTION] C:\DOCUMENTS AND SETTINGS\CENGER\LOCAL SETTINGS\TEMPORARY INTERNET FILES\OLKA\RYLAND TERM SB ET 8-2-04.DOC Letter of Intent This letter of intent is executed as of this 2-� day of August, 2004 by and between Redeveloper and Seller as defined below. This Letter of Intent is intended to set forth the terms of a Contract for Private Redevelopment to be entered into by Redeveloper and Seller, and except for Section 15 below(which shall be binding upon Redeveloper) shall not be deemed conclusive or binding upon either party. 1. Redeveloper: The Ryland Group, Inc. 2. Seller or Authority: The Brooklyn Park Economic Development Authority. 3. Pro e : The original phase II Hunt property. The property will be sold in its "as is" condition. The Authority is in the process of acquiring a portion of the property (the "Triangle Parcel")pursuant to a"swap" agreement with a third party, and the Authority's obligation to convey the Triangle Parcel shall be contingent upon its acquisition of the same. The Authority agrees to use best efforts to complete the acquisition of such property. The Authority will use its best efforts to provide Redeveloper access to the Triangle Parcel to conduct its due diligence, provided Redeveloper provides standard indemnities to the current owner relating to such entry. If the Seller does not acquire the Triangle Parcel prior to closing, the parties will close on the remaining property, and the closing of the Triangle Parcel will be extended to a date not to exceed 180 days. In such event the purchase price will be adjusted accordingly. 4. Purchase Price: $708,000 payable in full on the closing date, except as otherwise provided in Section 3 above. 5. Earnest Money: Five percent of the purchase price, remainder payable at closing, provided that the Earnest Money shall increase to ten percent if the closing is extended by Redeveloper as set forth in Section 9 below because of actions not within the control of Seller. 6. Due Diligence Period: Ninety days. 7. Redeveloper Conditions: a. Title b. Environmental C. Planning approval 8. Authority Conditions: a. Adequate Redeveloper financing, including self financing (both site development and construction) b. Site development contracts executed C. Development agreement with City executed d. Approval of construction plans e. Acquisition of the Triangle Parcel (which shall be a condition to the Authority's performance as to the Triangle Parcel only) 9. Closing Date: No later than 100 days after execution of Agreement. However, if conditions to the Redeveloper's performance have not been satisfied by November 1, 2004, the Redeveloper shall have the option to extend the closing date to April 15 of the next year on the following conditions: (i) the Contract for Private Redevelopment shall unconditionally obligate Redeveloper to close on the Property as of April 15 (except to the extent the Authority has not acquired the Triangle Parcel and except to the extent conditions to Redeveloper's performance then remain unsatisfied), (ii) if the closing is extended due to events not under the control of the Seller, Redeveloper shall increase the Earnest Money to ten percent. 10. Redeveloper Covenants: a. Application for plat approval no later than 60 days after the closing date b. No less than 69 housing units built in accordance with approved plans upon the following schedule: 40 units substantially completed by December 31, 2006; remainder substantially completed by December 31, 2007. The executive director of the Seller shall have administrative authority to reduce the minimum units to 65 upon cause shown by Redeveloper (Le. replatting necessitated by design changes). Such minimum unit requirements shall be adjusted pro rata if the Triangle Parcel is not acquired as contemplated hereunder. C. Redeveloper may extend the December 31, 2006 deadline for no longer than one year on a unit for unit basis at the cost of$1,000 per unit, and may extend the December 31, 2007 deadline for no longer than one year on a unit for unit basis at the cost of$2,200 per unit. d. The townhome units shall be sold for an average price of not less than $170,000 and the single family units shall be sold for an average price of not less than $195,000. 11. Housing_Plans: Housing plans must be agreed to in principal between Redeveloper and the Seller prior to execution of any binding documents. 12. Reverter: The Agreement will include a reverter,which will allow the Seller to retake the Property upon an uncured event of default by Redeveloper. After the property is retaken by Seller, Seller shall pay to the Redeveloper (i) the price paid by Redeveloper to the Seller for acquisition of the Property plus (ii) all documented Redeveloper "hard costs" associated with site preparation (i.e. out-of-pocket reasonable third party costs pursuant to contracts with unrelated third parties). The foregoing sum to be paid by Seller to Redeveloper shall be less any unapproved debt or encumbrances on the Property at the time of the retaking. In that regard, the Seller shall be permitted to withhold payment to Redeveloper until a date that is 90 days after the date upon which work was last conducted on the Property by Redeveloper or its agents. 13. Letter of Credit: Redeveloper will obtain an irrevocable letter of credit from a lending institution reasonably acceptable to the Authority in a minimum amount necessary to cause completion of the site development. The amount of the letter of credit may be reduced as site development progresses. The balance of the letter of credit will be released upon completion of the site improvements. The letter of credit will be released upon the Seller's exercise of the Reverter. 14. Debt: The Redeveloper will not be permitted to encumber the property with any debt or other encumbrances without the approval of the Authority. 15. Fees: Upon the full execution of this Letter of Intent Redeveloper will pay the Authority the sum of$10,000 as reimbursement for a portion of its legal and administrative fees associated with the redevelopment. In the event that the transaction contemplated hereby is not consummated, such money will become nonrefundable. If the transaction closes, the $10,000 will be credited toward the purchase price. 16. Private Road: The parties will decide by not later than 30 days after the execution of the Contract for Private Redevelopment whether an easement will be required in the private road abutting the north end of the property to the south If the parties determine on or before said date that such an easement is necessary, the Redeveloper shall attempt to voluntarily acquire the same at no cost to the Seller. If such negotiations are not successful, the Seller agrees to exercise its condemnation powers to acquire such an easement, provided that (i) the cost of such condemnation (including all administrative, legal and consultant costs) shall be borne by Redeveloper not to exceed an agreed upon amount, and(ii) the Seller expressly disclaims the success of any such action. 17. Miscellaneous: a. Standard representations and warranties from Redeveloper and the Authority b. Closing costs—standard and customary C. No transfer of property or agreement without Authority consent d. Standard Indemnification IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first set forth above. THE RYL GROUP, INC. By: Its: THE BROOKLYN PARK ECONOMIC DEVELOPMENT AUTHORITY By: Its: 2139326v1 1 � i tip l f1l�J \ lot i ■ enm! min nnre j s m w ► �;a.:. �'-_'�"�—,,,`-,— r ��.. �'ti-,�"Nr� �- � / / / / / / 11 I 1 ,/ uuLRu Mto Hel■'+� f � �. �'s4'�. ' `•�06Mil Wool � to s r - r I nr■r+ / I rn � AI +�u lilt u. _.� �'� s,i au - - � !,_ �, � � j ■ q� .� �r 1r'af�cirt■t _ n nl "'r '.`iailii,-�'�_-` '''�!E::■1 If:: I I _. :IIWRI _ n In � 41� �� �• ,� ��, �tlkH�l THIN _ ��`�.����— ■ ,z s. .. v 1° Traditions Single-Family Jfomes Our recently updated7rad tions - homes are ideal for your family's active Cfesty/e. (,'hoose from several floor plans and home styles, each with fouror more bedrooms, two ------ anda half baths andeTanded living area with finished basement. I ■ r _ ..... Features: MIME 3Several homestyles 4 Four or more bedrooms Two anda half baths - rt: Standard2 cargarage to `vp to 2,S00 fints l d sq.ft. ?ypicalStreetscape 1 W4 ,�,n, 4 i Ila OR y� r AmrTf,n 'Vrban Townhomes r.. i -� Traditional style row ,.,. - townhome with a rear �. J J 11, entry 2-car tuck-under Gm.. .n garage and a lookout �-- - -- - basement. - - „ Projected buyers include: �l. :} Starter families, singles, ' fm, �,' active adults c,seniors. no Ht • '1' �, 'Features: 3 Bedrooms a -- 2.5 Bathrooms Optionaf Den P 2-Car Garage 3 Floor Blans �• 1,595 - 1,947 SAF r ~r lip Mir wv^ W t �A y�IP �•' s +• t a r ,r 3 AVrt�W u. H r r .in . YN ' � ,"untage Two-Story Townhomes This classic townhome provides spacious two level mow. l 72� living andfeatures a spectacular 2 story lofted entrance. There : . -- - are e distinctive floorplans three ranging in size from 1,600 sq. 1, first Floor Plan ft. up to neary 1,800 sq.ft. featuring an owner's suite with .. bath andwall-in closet this house is designedwith an active lifestyle in mind, andare 4 association-ina intained: J1111111 Stow Ynww. r.yr u A _r Teatures: 2 or 3 Bedrooms m. 2.5 Bathrooms 2-Car Garage Second,FloorTfan 3 (Floor Plans 1,600 - 1,800 SE ''' " '�� ' �.. � ., '� r ��' f�� Wig, � �.,' v ,� -. ,; fur .�� �,.. t -f# � � �4 ,. �,. „„v,,..�r j � ..�.fir..... � �. t T • � �� _ r � r. M�� r,'t v a � ;� � } e �� ` w `�, ..fid:;. �.. � �. .�. �; k.. ,�. ,Y �> �� . .� , . � r s �� =. �-^�'b . _ ,_ �� Y'eritage Condominiums , , �.Wi s3 F A nowr' RYLAND HOMES' America's Home Builder ryland.com •�y r IP n 1� r rm i on •���` Ott► fa•A ��E t aM L� illi ill ' - ttt rpt r LL t Aik 1 jffJEE,,,NfNEfIN Vil L----, CC-i Et � Wen ('r oiric, Minneso respectf9r the Past, PlartrlGYl " ,br the J-4tutr e RYLAND HOMES' I.. N. 11 Qai !Ilk Will. 1 Ii,LL Ak"i H' "We live in the present, but also in the past and the future. We cannot ignore or separate ourselves from the past's importance,for without the remembrance JOW of the past there is little appreciation of things today." - Helen Holden Anderson Respect for the past...planning for the future... Xoland Homes proudly presents Hennepin Village, — premier community with beautiful views, located N n rolling hills. This unique site offers open spaces, tree-lined streets and a variety of home styles to choose from. t '.mt�" •�^ •. a .. y1 x " r_ A A/ X _11, Designed with your lifestyle in mind, this community provides maintenance-free living and a recreational complex that includes , a sparkling neighborhood pool, tot lot and other amenities. , s • Hiking/biking trails • dose to shopping and popular dining • Just off Hwy. 212, minutes south of 494 • Several home styles to choose from r F i J l .A A �Ir w T...,,yfttefnmur uma;� rinn wn�ninm� a �� . s ��9��i� ��33 ���s I ,�sI;�,�silllNl�i�ism a8��fru�i�,rii�ih'1 --_.. Tf . ill 11 ������������� el V III H DETAOHED VILLAGE TOWNHOMES HERITAGE TOWNHOMES Featuring a covered front porch, these detached These prairie-style townhomes provide spacious townhomes include 2-car garages and classic two-level living and feature dramatic two-story architectural elevations. Your choice of six windows and an unfinished basement. Three floorplans, ranging in size from 1,381-1,995 distinctive floorplans range in size from finished sq. ft., includes up to four 1,587-1,775 finished sq. ft. Two bedrooms bedrooms and 2'/z baths. plus loft, or three bedrooms and 2'/z baths. - X; -a CARRIAGE TOWNHOMES ONE-LEVEL TWINHOMES Traditional row-style townhomes offer a 2-car These newly designed twinhomes were planned rear-entry garage and three exciting floorplans! with your lifestyle in mind! They offer more Finished sq. ft. ranges from 1,595-1,898, than 2,000 finished sq. ft. of living space and with the option to finish the lower level. a 2-car garage. Master Bedroom and laundry Three bedrooms, 21/ baths. are located on the main level. ,PClprl plztil-ie, ;Villlusolo U94 C Newly Redesigned Eden Prairie Center13 's• •,' Lr G z Fj -- LAKE _-_ - BEAR PATH �4 /// • RILEY PARK COUNTRYCLUB c:, J— QXpNEER TRAIL tAkE&A ANAIRI GRACE R/(� SHOPPING CENTER CHURCH HENNTRINlam/ vi ILLAGE 5QP Rive ANOKA WASHINGTONJ CARVER IDAKOTA Vi RYLAND HOMES o sit our information center at 8972 Spring Road. 952-294-1096 Builder DIRECnONS:Take Hew,..5 west to new Hwy.312 until it ends.Tum right(south) America's Home on Eden Prairie Road to Pioneer Trail. Tum left(east)on Pioneer Trail to Co.Rd.4 (Spring Road).Tum right(south)on Co.Rd.4,follow to Hennepin Village. Tum right. Information center will be on your left. Information contained in this brochure is deemed reliable but not guaranteed ® MN Builder License #20035443 on the date of printing.Changes may occur without notice. Brochure by Landmark Photography&Design(LandmarkPhotoDesign.com). Reg e n cy e - Yfopkins, 914innesota • VIII 4 � (. z Zi > REGENCY LANE REGENCY I.ANF. F.. z . Z G SECOND STREET NE '! �' i►€� fti:: tom' ��° F:' �: � C. t. �' c.`�' E� �i:• v �' (i: � t^ � � �t�' •��'® C: RYMD HOMES' Nmerica's Home Builder ryland.corr •� Villa e of Circfe dines •• Circle Fines, 9Vinnesota •!. �! Gazebo > d;vIL . '- ! f 17 �'j . a. �f r n 00 6 f 04 go a 00* 09 b ' �► . � View of Village Center with Carriage Townhome overlooking Park&Pavillion Village of Circle Pines Site Plan RYLAND HOMES' ericas Home Builder ryland.com _ Y v j. , r r 3 1 tel■ ;� �. .0 L9 rm s m ARNOW u . a.: 8 0�s� m a 1�t' t� ���*.� � •j m.,�. 1D O 2 38 DRAWAA ri ZIA FENV a t 1.4 1.. {, \y, 29'1 �;' yEz Vrnvf�� :#r'�r �5{• ��y: � ��1 , sk 71 ,mro: u 9 �+,�`rltb a HM N a Alt k� aw.m I �• 1 20 77 �"t Qw, 1 L§{g� lL 0,01 1 � . k` `� �� ,� t• {� 1 � d ���� r� � s� �/��/ , �. '� ��s� me � � �"r i ,i X. 33 ' FON vy v � g a—� �, > >, ,, ,. may, s :•�•r `"1�''' ,: +, � i. Q $ {^n _ oT�Sp� i �" A»v r.. 2"�'S149i"„'. + �• 1p: �)P ` .r.• t�'•aO�G�'0�� r7 '§ � � I ! 1Sn r.. � Y•; _t�� I ” � y �� ) "t� .I.4'. r g � ps4 � .. AVF1�uE—NWEL g m `' � ws+ «� �'• v' `.en x� � FOUNTAIN AVE N a s o _ g it G - R21W R20W R19W Bald Eagle Industrial Park T32N T32N YOU ARE HERE 5 T31N T31N T30N T30N {:e Q lF .. z T29N T29N T28N T28N I i T27N I T27N R22W R21W R20W 1.1 Acre "Rink-Tec" Site Vicinity Map N 3.3 Acre Site w dry=l �sG�-e S 0 100 200 Scale in Feet This drawing is the result of a compilation and reproduction of land records as they appear in various Washington County offices. The drawing should be used for reference purposes only. Washington County is not responsible for any inaccuracies. Source:Washington County Surveyor's Office. Phone(651)430-6875 Location Ma Parcel data based on 30,2 0 information �; current through:April 30,2005 Map printed: June 20,2005 Page I of I Mike Ericson From: Theresa Charpentier [Theresa.Charpentier@toro.com] Sent: Friday, July 08, 2005 3:50 PM To: Mary Ann Creager; Bryan Bear; Mike Ericson Subject: RFP meeting I don't know if we have a RFP analysis process or not and I put together a starting document to score the RFPs. This allows us to be more objective. Please feel free to expand the document if you would like to use it. Theresa Charpentier TORO Commercial Division Technical Services Manager 8111 Lyndale Avenue South Bloomington, MN 55420 O - 952.887.8814 C -651.245.1193 F - 952.887.7292 7/11/05 RFP Review Scoring 11 21 3 Lowl Medium I High' Competes Supports the with existing High Potential Strategic Hugo Regulatory Environment Speed to Creation of RFP Plan Businesses Needs al Impact Market Skilled Jobs Additional Comments TOP oc t T ht; x 1 — ��►Se, . b • I c rn a cam,L Pte � ✓� n.,� �— � s-r;�l�/ �aOL 0 0J�� f4-0 \; EXHIBIT C /f°-4 Waiver of Relocation Benefits 6ratlurr, ge 'Of d�ek�� Pe� Resor ' f,if 16 j'OA a�+7�r�'y c, �Ep,� rrc&mMr e4 for t81E1P �►rpPerfy fo 7 C�ooS� pfvm /- g no�p D f' P c »fie f�� 4/ �.i)Vl•ss's Jok ctC(I` o,,-m,-,r 01'49 ti «x r-4QrAId C�>1f�;bv�d�s �'� fhc ro�mu�►��r I'.q a tirj F>� �s»�� q�.�h1, i, ) F� c -n,0 f 4 p erre(t14 vs e 1/7 Ly"P, .1 1Y?WO-3 1 d(s}r,c hex i Or-m�na1-n�, CUp) s1t� , 1s-n oifmL-s / Ajit 5b tO P C o 71 OC r) br, l3�k �'DA wt3 1)1'41V4 (,0( 7 FrfeAbr7I�J �oa�ynna�s nd.crdirir W f-1oS4 s141 pliyl 6ul mn C�n�y LoQorr! Qr� hPrP ��day �- 04s a.rr rv��/i.rt r ForAer DVPrvrow oF ,�hP st�� l°la� ►.J Qeie Fir rhrt NR,n�<-��� site / L • f �C (�Ui �d)n Y/1��1's jer�r� sr� G�11�i sr bar S 6� floor FPZ'IfP,I ��sy 016A 1 )4cf4s m1211 - 3MW-rn)r pPvj fr���� P•cfFr�vl' G' r�-fi cc Ch,4711 /1VI/C den-(sr��c yn,�Tv�� �l� 3 �Pct(�va�S S1'lo�c frrrll8 evrrLrrP1,4f1,32 pofeshrvk PARKIN6 - Avis p�ry►��� � j�vo>�io� S Sr►tPJ�'r� rc,f of u,�ll jeCP Ish�-S .tw rtt��- f,rCo <n ��mrs lisk�sl� /�onj( 4/p`� ofCCr7t of�� black W11,40(4)-5 110zrl)/14j-e4 e*,/7vr/JrA � S,^� EXHIBIT B l Lease for "Restaurant Parcel" �►�'� d-»1 rn/1 s�co�� Gi�Ylpnf J� n�P ND Frbe 'rQ C t .b10G1` �b�Sr ��,� r►��P b1�` �� hr B-1 STAFF SUMMARY OF THE RFP'S FOR THE CITY OWNED PARCELS IN THE BALD EAGLE INDUSTRIAL PARK The 1 Acre Site bounded by Fenway Boulevard Circle to the south. 1. Oneka Pet Resort Proposal Guy LaBarre of C.G. LaBarre L.L.C. Pet Resort Inc. is proposing to construct a 6,400 square foot building to serve as a pet kennel on the 1 acre site. The plan includes 24 parking stalls and a fenced in outdoor play area for the pets. The pet resort would employee 26 people. Issues ✓ The current 1-3 zoning classification would need to be amended to permit this type of use. ✓ More parking may be needed than 24 spaces to provide for all the customers and employees. ✓ Additional screening may be needed for the outdoor area to provide a sound barrier to surrounding neighbors. ✓ The pet resort could generate a significant amount of vehicle traffic during pickup and drop off times. 2. Escape Fire Protection Proposal Escape Fire Protection is proposing to build an 8,800 sq ft office/warehouse multiple tenants building. Escape Fire Protection intends to occupy roughly 3,000 sq. ft. of the building. The other two units would be available for lease but there are no specified tenants. The plan includes 28 parking spaces in the front and 14 parking spaces to the rear which meets zoning requirements for this type of use. Issues ✓ The site plan shows most of the area as paved surfaces which do not leave much room for the required landscaping. The development covenant requires 5% of the interior area of the site to be set aside for landscaping ✓ Escape Fire Protection needs to find tenants for the rest of the building. 3. Underground Tools Inc. Underground Tools Inc. (UTI) is proposing to build a 43,000 square foot office warehouse building on the 1.1 acre site. UTI intends to occupy the entire building and plans on employing 26 people at the new location ✓ The site plan is completely maximized and there is not much room to accommodate future growth of the business at the proposed location. ✓ Truck access to the loading dock would be very difficult. The 3.3 Acre Corner Lot bounded by Fenway Boulevard to the west and Fenway Boulevard Circle to the south. 4. White Bear Boat Works Proposal White Bear Boat Works Development Team is proposing to purchase the entire property and subdivide the site into three parcels. Lot A would be 1.3 acres and would have a 19,000 square foot building where the White Bear Boat Works business would locate. The White Bear Boat Works building would consist of a boat repair area and a showroom for the display and sale of boats. The site plan also shows an 11,687 square foot outdoor storage area. Lot B would be 1 acre and consist of a 16,700 square foot warehouse office building that could be leased out. Lot C would be 1 acre and include a 12,546 office condo building. One business has expressed interest in purchasing a 1,800 square foot unit in the building. Issues ✓ The White Bear Boat Works needs to find tenants for the rental building and additional buyers for the office condo building. ✓ Screening of the outdoor storage area and parking lot form adjacent residential town homes. ✓ Insufficient amount of parking. ✓ The land use needs to be better coordinated on the site plan. 5. Pearson Mechanical Services Inc. Pearson Mechanical Services is proposing to build a 40,000 square foot warehouse office building on the 3.3 acre site. The commercial electric contracting company intends to employee between 30-80 employees at the location depending on the season. The building would serve as the new headquarters for Pearson Mechanical Services and CAP Electric. Part of the building may serve as a manufacturing distribution center. Issues ✓ Screening of the loading dock and parking lot form adjacent residential town homes. ✓ The part of the building proposed to house manufacturing and distribution could create a nuisance to adjacent residential properties (increased traffic from trucks and noise, odors, from manufacturing process). ✓ Plan does not include an adequate amount of parking for the intended amount of employees. May 24, 2005 AY2 � �� Bryan Bear Community Development Director City of Hugo 14669 Fitzgerald Avenue North Hugo, MN 55038 Dear Bryan: Thank you for meeting with me and discussing our service business, Oneka Pet Resort in the Bald Eagle Industrial Park. We would be interested in the property currently owned by Rink-Tec, should it become available. Attached is a drawing of a space plan for a 6,400 square foot building that could be constructed on that site, which would be owned and operated by C.G. LaBarre L.L.C., C.G. Pet Resort Inc. dba. Oneka Pet Resort. Oneka Pet Resort would employ 22 Pet Technicians, a full-time Manager, an Assistant Manager, my wife Cindy and myself. Attached is some general information, including a "Mission Statement", "Corporate Structure", and "Management Team". I understand that the property is Zone 13 and would need to be amended to include our type of business. Construction could start on the building once the land was purchased, zoning change was complete and building was approved. Please let me know if the property is available and if our service business would be accepted in this location. Sincerely, Guy L. LaBarre GLL/mt Enclosure Mission Statement: The mission of Oneka Pet Resort is to provide a safe, healthy and fun environment where pets and family stress is kept to a minimum while pets and their families are apart. Corporate Structure Principles: Cynthia J. LaBarre Guy L. LaBarre Joint ownership C.G.LaBarre LLC. would be setup to own the real property. C.G. Pet Resort Inc. dba Oneka Pet Resort would be setup to operate the boarding facility. Management Team/Operations Cynthia J. LaBarre, President C.G. Pet Resort Inc., C.G.LaBarre LLC. Cindy is the on-site administrator and contact for pet owners. She is in the process of completing ABKA (America Boarding Kennels Association) designation "Certified Pet Care Technician". Cindy has banking, bookkeeping, collections and customer service experience. She has lived and worked in the community all of her career and raised a son, age 26 and daughter, age 24, both completing their last semester in college. Quarterly salary will be based on business performance. Guy L. LaBarre, Treasurer C.G. Pet Resort Inc., C.G.LaBarre LLC. Upon retirement Guy shall be on site for customer contact and marketing events. He is a Commercial Real Estate Broker licensed in Minnesota, has an RPA designation (Real Property Administrator) from Building Owner Managers Association, B.S. Bachelor of Social Science secondary education University of Wisconsin, has two golden retrievers trained for hunting, and has provided training at Northland Kennels. Currently President of Minnesota Street Associates, Inc., a property management company for 956,000 square foot office complex in St. Paul, Minnesota with approximately 80 employees. He has attended ABKA seminars, "How to Establish and Operate a Boarding Kennel", "Kennel Building Design", "How to Get Financing", "How to Establish and Operate a Dog Day-Care", and "How to Establish and Operate an All Suites Facility". Quarterly salary will be based on business performance. Nikki L. LaBarre, Management Trainee. Upon completion of her teaching degree from St. Catherian College Nikki will supplement on-site management and is in the process of completing ABKA (American Boarding Kennel Association) designation "Certified Pet Care Technician". Hourly wage —paid on hours. Summary Corporate Managers —Salary/unless otherwise designated shall be responsible for all corporate compliance, including accounting, finance, regulatory (Federal, State, local) personnel policies, payroll, personnel records, emergency procedures. Will assume operation manager duties, depending on client occupancy. Operation Manager (Salary) Shall be responsible for day-to- day operations. ➢ Scheduling of Pet Technicians. ➢ Job descriptions for each Pet Technician. ➢ Training of all Pet Technicians. ➢ Ensure pets care, health, safety and minimize stress. ➢ Billing procedures followed by staff. ➢ Opening/closing. ➢ Communications between Pet Resort, Pet, Pet owners and family. ➢ Report to Corporate Managers. ➢ Reporting to Operation Manager is Assistant Manager and all employees. ➢ Entrance exams of all pets. Assistant Manager (Salary) ➢ Has all of the same duties of Manager in their absence. ➢ Direct contact to Pet Technician. ➢ Training Pet Technicians. ➢ Makes daily assignment for staff, including cleaning, food preparation, medical needs, laundry services and bathing assignments. ➢ Report to Operations Manager ➢ Entrance exam of all pets. Pet Technicians (hourly staff, full and part-time) ➢ Cleaning facilities and grounds. ➢ Laundry services for Pets. ➢ Handling of Pets. ➢ Food preparation and delivery. ➢ Understands emergency procedures. ➢ Pet pickup/delivery. ➢ Pet cleaning and bathing. ➢ Providing care if special needs are required, such as medication or mobility assistance. ➢ Keep equipment in good order. ➢ Provide inventory needs for supplies to manager. ➢ Reports directly to Assistant Manager or Operations Manager as necessary. ➢ Not to communicate with Pet owners. Daily Schedule PET TECHNICIANS 7:00 a.m. ➢ Check cattery, water, litter boxes ➢ Remove upper level dogs to outside area ➢ Remove all items for laundry ➢ Clean, pressure clean, sanitize upper level ➢ Replace floor rug, bedding, replace water dish ➢ Return upper level dogs inside ➢ Remove lower level dogs to outside area ➢ Remove all items for laundry ➢ Clean, pressure clean, sanitize lower level ➢ Replace floor rugs, bedding, replace water dish ➢ Return lower level dogs from outside, feed dogs that are scheduled for twice a day 9:00 a.m. ➢ Dispense medication to dogs as required ➢ Provide walks, playtime to dogs schedule ➢ Start laundry ➢ Provide schedule bath or provide if needed ➢ Take 15 minute break ➢ Start water bowl cleaning in dishwasher ➢ Clean litter boxes ➢ Feed cats ➢ Start swimming time (Summer) for dogs permitted 12:00 p.m. ➢ Start 1 hour lunch break ➢ Finish laundry, fold and store fresh rugs, bedding 2:00 p.m. ➢ Finish water dishes ➢ Bring dogs in to rest 3:00 p.m. ➢ Start feeding, second feeding to dogs scheduled 5:00 p.m. ➢ Clean play area inside and outside ➢ Start last outside walk before night ➢ Shut down, older and smaller dogs last ➢ Ready dogs that are to be pick-upped ➢ Finish last walks outside 7:00 — 9:00 p.m. ➢ Clean laundry, kitchen, bath area, ready for next day YV UI T LO 61.YW.11 L per« j i I j� I L-7 1145 L L yr _ Icl y a b40o5� - + �A�1NC Introduction Cindy LaBarre Guy LaBarre Business ➢ Pet boarding ➢ Staff 22-24 ➢ Daycare ➢ 82+ Dogs 24 cats ➢ Bathing Facility — building 6,400 s.f. 1 .25 acres ➢ Laundry ➢ Indoor play area ➢ Kitchen ➢ Outdoor play/pool area ➢ Bathing ➢ Fence walking area - ➢ 3 zone boarding areas* grass ➢ Cattery * HVAC, noise control, plumbing, lighting Concerns ➢ Location (isolated, traffic, easy directions) ➢ Zoning ➢ Land WHITE BEAR BOAT WORKS DEVELOPMENT PROPOSAL FOR DEVELOPMENT OF CITY OWNED PROPERTY IN BALD EAGLE INDUSTRIAL PARK Submitted to: City of Hugo Attention: Bryan Bear 14669 Fitzgerald Avenue North Hugo, MN 55038 Submitted by: White Bear Boat Works 4495 Lake Avenue South White Beal- Lake, MN 55110 651-429-7221 Fax 651-429-3248 !MAY 279 2005 TABLE OF CONTENTS Page Introduction . .......... . . . ........................ 1 Development Team ............................ 2 Proposal ................... .............. ........ 3-4 Timeline .............. .. . ... ......... . .......... 5 Conceptual Site Plan . ......................... 6 INTRODUCTION City of Hugo Attention: Mr. Bryan Bear 14669 Fitzgerald Ave. N. Hugo, MN For your consideration the White Bear Boat Works Development Team is pleased to submit a proposal for the full development of the City owned property in Bald Eagle Industrial Park, described as Lot One of Woods of Bald Eagle Lake. If selected, and to the satisfaction of the City of Hugo and White Bear Boat Works, a full development of the 3.3 acre site is proposed as follows: Construct a one story, approximately 19,909 sq. ft. building with approximately 11,687 sq. ft. of outdoor storage for the operation of White Bear Boat Works. Construct a one story approximately 16,795 sq. ft. Office Warehouse building, Construct a one story approximately 12, 546 sq. ft. Town Office Building. 1 DEVELOPMENT TEAM Jason and Angie Brown, Owners of White Bear Boat Works Steve Jensen, Architect of Record Terry Thompson, Development Manager White Bear Boat Works Bringing fun on the water to people of all ages and experience levels, White Bear Boat Works is a continuation of the historic Johnson Boat Works, former manufacturer of the scow racing sailboat since 1896. As the great-grandson of J.O. Johnson, inventor of the scow sailboat, Jason Brown managed the 102-year- old Johnson Boat Works for 12 years before starting the White Bear Boat Works with his wife, Angie in 1998. Specializing in new and used sailboats, wooden boat restoration, fiberglass and rigging repair, and parts and accessories, the Boat Works draws customers from all over the country. Currently employing 15 people, including 2 Hugo residents, the Boat Works has been a family-owned and operated business since its inception. By moving into the proposed larger building, White Bear Boat Works will be able to expand the business, and would look to hire additional employees from the surrounding community. Steve Jensen Steve has been a registered architect for 22 years, with extensive experience in commercial, industrial and marine design. He also has 35 years of construction experience. Terry Thompson Terry has 28 years of construction and development experience. He is a graduate of Iowa State University in Construction Engineering, and has worked for Kmart Corporation as a Construction Manager and Regional Development Manager. As a Development Manager he has been responsible for project budgets, conceptual site plan, site planning and development, due diligence, engineered drawings, administrating construction contracts, and oversight of project construction of $10 to $22 million Kmart developed properties throughout the United States. PROPOSAL We propose splitting the 3.3 acres into three lots. Lot A would be 1.3 acres and would have a 19,909 sq. ft. building to house the White Bear Boat Works. Lot B would be 1 acre in size and have a 16,795 sq. ft. building. Lot C would be 1 acre in size and have a 12,546 sq. ft. Office Condo building. Site landscaping would be designed to enhance the site. Lot A White Bear Boat Works 19,909 Sq. Ft. The building would be pre-cast concrete or masonry with a glass entrance showroom to display sailboats and for a retail sales area. The building design will include shop areas for fiberglass repair, boat rigging, painting and boat restoration. Outdoor storage of 11,687 sq. ft. will be fenced and screened per code. Lot B Building 16,795 Sq. Ft. We are proposing a warehouse office building that can be leased out and divided by the number of tenants (to be determined). We are seeking tenants that would fulfill a need in the community. Potential tenants could be day care services, learning services, engineers, recreational sports showroom, to name a few. The building would be pre-cast concrete or masonry to complement Building A. Lot C Office Condo Building 12,546 Sq. Ft. We will be marketing these offices for sale. The proximity of residential housing to the site should create an interest for professional services that can be utilized by the residents. This concept allows residents to live and work in their own community and eliminates the need to travel outside the City for both work and to obtain services. The proposed building would be a combination of masonry, stucco or exterior insulated finish system, in earthtone colors to complement Buildings A and B. Sail la Vie, a sail and canvas repair business, is a proposed owner for an 1,800 sq. ft. unit. 3 Financing Financial Information will be available if this Development Proposal is accepted by the City of Hugo. If accepted, this proposal is subject to satisfactory completion of Property Inspection and Due Diligence Investigation. Jason Brown, President Date White Bear Boat Works 4495 Lake Avenue South White Bear Lake, MN 55110 651-429-7221 Fax 651-429-324 4 TIMELINE July 2005 Due Diligence, Marketing and Leasing January 2006 Prepare engineered civil drawings and architectural drawings. Plan Approval Process May 2006 Start Site Work on entire site June 2006 Start Construction on Building A. Buildings B & C would also start construction contingent upon Tenant Commitments with an approximate four month construction period. September 2006 Occupy White Bear Boat Works Building 5 N01�5: to -- %LPING A, 19,909 5Q. Ff. W/ 3,033 5Q Ff, OU1 OOF,p0P11C0 ournoor LOr 51Z�: 1,3 ACP�5 5fORAa MA NO PAMING 5fA15: I4 ii,68�sa,Fr. I DUL121%D: 16,195 5Q, Ff, Z ® LOf SIZE: I ACS \ \ \ PULPING "A'' NO, M&NG 5fXL5: 15 1� 19,909 5Q,Ff, P J�0 ,v ( f3UILnING C: 11,600 SQ. C1', �1 \ L01'SIZE: I ACIT- � O NO. PAMING 5MI5: 63 I'J ��� �� (�ULnING "(�" �� � �UILnING "C'� •� 16,195 5Q,Ff, 5.800 5Q.Fr,LM LEVEL 5.800 50.Fr,MAIN LEVEL I 'Z(� ® No. Revision/lesue Dats bC�n Firm Noma and Address WI W ® -4495 LAKE AV's 5OU1'N WHIS PEAR f AKE,MN 55110 651-429-7221 \� Project Name and Address INbOTIAL FAM Sheet MITA 6W 130ATWX6 Date Scale 05 O NT5 July 14,2005 Mr.Brian Bear The City of Hugo 14669 Fitzgerald Ave.N. Hugo,MN 55038 RE:Development of City Owned Property in Bald Eagle Industrial Park Dear Mr.Bear: After our interview on Monday July 111h,2005,it was apparent that further clarification was needed on our proposal that was submitted to you on May 271h,2005. First,it was always our intention to develop and utilize the full site at the time of construction.However, during our field inspection of the property,we assumed there was a part of the property that was wetland and could not be changed. We believed that to accommodate the wetland it would be best to have two buildings to utilize the land efficiently. During the interview,we were corrected and informed that the low land was to be filled in. This would allow us to build even larger than we proposed and allowed us to concentrate on one building rather than two separate buildings. Having heard this at the meeting excited us even further to know that this could be done. We are therefore revising our proposed building to encompass our greater needs. Our revised building site plan will encompass one 20,000 to 40,000 sq ft building for office and warehouse. This will include enough space for manufacturing and distribution,as we discussed,all with in one building and would be much more efficient for our needs. As we indicated at the interview,we are currently leasing in Stillwater,MN and our lease is up May 1,2006. We therefore need to start Construction for the building as soon as possible. We believe that we can offer a lot of value to the city of Hugo in three parts; • First,we are truly excited,serious,and ready to act RIGHT NOW. • Second,We have INSTANT financial ability RIGHT NOW! • Third,We can have an immediate impact on the community,both directly and indirectly. If there are additional questions,please contact us. We thank you for the opportunity to be selected for this property. Sincerely, onald A.Pearson R.A.Pearson&Associates Enclosure(1) crp 12575 LOCKRIDGE STREET STILLWATER, MN 55082 N Garbage Oai i Loading Dock ° o 0 s, ;,a ° ® Office / W harehouse: ® 20,000 to 40,000 Sq Ft. o J 1 ® ea Ag a 0 1 I 1 ESCAPE FIRE PROTECTION FUTURE BUILDING ESCAPE FIRE PROTECTION NOTES: 3020 CENTERVILLE ROAD CONSTRUCTION SHALL BE SPAN-CRETE OR LITTLE CANADA,MN 55117 CONCRETE BLOCK NYTHBAR JOIST 651-771-8874 PHONE PROVISIONS SAHLL BE MADE FOR MVLTPLE 651-771-8875 FAX LEASE TENANTS PROJECTED USE SHALL BE OFFICE/WAREHOUSE 1Y4 K'O 4'-r EXISTING WHITE BEAR MECHANICAL Ll H HLI H Hl'. . . ORKE OMCE OFFU V-e I - REAR VIEW SIDE VIEW i ESCAPE FIRE Ffl= PROTECTION FRONT VIEW I I FENWAYBOIILEVARD CIRCLE NORTH I� uti ML • Underground Tools,Inc. 1930 West County Rd C Saint Paul,MN 55113 Toll Free: 866.488.DIRT Phone: 65 1.255.1873 Fax: 65 1.255.1877 www.undergroundtools.com 151 Lq OL M(IrtTM TECHNICAL SERVICE All jobs are different. Each project poses new challenges when working underground. That's why more and more contractors are calling Underground Tools, Inc.to get DirtSmart technical support. For knowledge that solves problems and for tools that work,just call 1-866-488-DIRT: ?' .t ' ■■■■■■■■■■■ DIRECTIONAL DRILLING PIPE ■■ UTI offers one of the industries most I�x comprehensive selection of premium quality • drill pipe. Whether your rig performs • sidewalk crossings or river crossings,UTI can - supply the pipe for any rig in operation. • Mini through Maxi drill rig size • w : • Forged one-piece drill rod,S 135 grade • Forged,inertia welded drill rod • ' • Unsurpassed quality ' .; • Readily available 1 TRENCHER PARTS ONOMMOMMOOF NOON Outfit nearly any trencher on the market, from walk-behind to heavy duty track trenchers,with premium quality wear parts from UTI. Count on UTI's exclusive DirtSmart it • technical service to get the best tools for the job. a • • Finest steels and carbides offered a • Meets or exceeds manufacturer's specs a • Lab-tested,field-proven durability • 75 years combined experience in outfitting trenchers ■■■■■■■■■ft■ WEAR PARTS/ACCESSORIES ■O■ • UTI offers a wide selection of parts and • accessories for the support equipment in the trenching and directional drilling markets.Products are readily available,saving you downtime while L offering you durability,job after job. A � r • Uti 1 Underground Tools, Inc. 1 Business Summary 1 For 1 City Of Hugo 1 Bald Eagle Industrial Park 1 1 1 1 1 1 1 1 1 ' Underground Too/s, /nc 4j,r uti yH , To whom it may concern: t` ' Underground Tools Inc. is currently seeking a site for construction of a new office/warehouse. In doing so we narrowed down our search to 3 communities, with Hugo being one of them. Underground Tools Inc. (UTI) is a relatively young and progressive company. Incorporated in June of 2003. UTI supplies and markets trencher parts, directional drilling drillpipe and accessories to the construction industry throughout the entire world. We are currently leasing two 6,000 square foot office/warehouses in Roseville. UTI is a privately owned corporation founded and owned by three equal shareholders. All three are full time active employees with combined experience of over 60 years in sales, management, and manufacturing of products for the underground construction industry. UTI has been fortunate to have showed healthy profits every quarter since its inception. The growth has been great but controlled enough to handle without sacrificing our service to our existing customer base. UTI has built an image and reputation of being the most reliable, knowledgeable, and competitive supplier in our industry. ' UTI always maintains a clean friendly, fair and creative work environment that respects Y � Y� p diversity, new ideas, and hard work. UTI is currently employing nine people and a forecasted 15 employees by the end of 2005 and 24 employees by the end of 2006. We will be looking for local light manufacturing, assembly, sales, accounting and administrative employees. UTI also will be using local services such as welding shops, courier service, machine shops etc. ' Throughout our search we have concluded that we think Hugo and the site we looked at are a great fit for our growing business. We like the location for many reasons. It is centrally located for all three owners. One of the owners was raised on Bald Eagle Lake and currently resides in Mahtomedi. Hugo is easily accessible for all of our needs. Hugo is a growing community in which we would like to grow with. UTI believes that we could and will be an active part of your community through not only our professional relationship, but also all our employees personal relationships in and around your city. t If there is any more information you need feel free to contact me any time. Thank you. Sincerely, Mike Burns Underground Tools, Inc. ' 866-488-3478 - Office 1930 West County Road C 651-271-4818 - Cell St.Paul,MN 55113 www.undergroundtools.com Phone:651.255.1873 ' Fax::651.255.1877 Toll Free: 1866.488.DIRT Web site:www.undergroundtools.com UNITED PROPERTIES ' Proposed Building for: Underground Tools Inc. on Lot 003, Block 001 of Bald Eagle Industrial Park 5th Addition Address: 13477 Fenway Blvd. Circle North Zoning: 1-3 - General Industrial Property ID #: 3003121410059 p Y Size of Site: Approximately 43,177 square feet ' Proposed Building Completion: August 2006 ' Building Size: 11,000 - 12,000 square feet consisting of up to 2,000 square feet of office space and up to 10,000 square feet of warehouse space. ' Building Type: Office/warehouse with one loading dock and one drive-in door. ' Parking: 18 - 22 stalls ' Clear Height: 22 feet Proposed Architectural ' Features: Insulated pre-cast concrete wall panels and glass with decorative block accents tBuilder: To be determined Contacts: Mike Burns - Underground Tools, Inc. (UTI) Cell: 651-271-4818 Bob Revoir- United Properties (Real Estate Representative) ' Cell: 612-250-3392 3500 American Blvd.West, Minneapolis, MN 55431 • 952.831.1000 • fax 952.893.8293 • www.uproperties.com A member of ONCOR International 175.01Jafvert I I 1 mueller — architects C) inc. p M 50-i u] ( � I aoe.+.pon MNlUn y •».m.vuacr-woi _ BUILDING SETBACK DRIVE—IN I UNDERGROUND DOOR TOOLS,INC. I I z o U PROPOSED BUILDING HUGO,MN 9,135 SF I WAREHOUSE 52.00 M 40.00 40.00 N 10,712 SF r I TOTAL < BUILDING o C-) o PRELIMINARY eO 0- NOT FOR CONSTRUCTION N to O revisions: 11,577 SF\\\\\\l date: description OFFICEe JUL 05 ;„: ao, neoea r r p.M:q / 9 JUL OS spaces d MVMs.E Oui"s¢e I / Area Calculations: Site 43,177 SF 5' PARKING SETBACK-TYP SCHEMATIC Max 80%hardsurface coverage 34,541 SF / ENTIRE PARCEL DESIGN Actual coverage I Building 10,712 SF / date: 7 JULY 05 Hardsurface 20,248 SF drawn by: MRH Total 30.960 SF checked: cont.no.: 205189 sheet number. _SCHEMATIC SITE DESIGN S D 1 D1 t•.p• NORTH R.A Pearson&Associates Phone 651-275-8424 M A. Pearson & 12575 lockridge Street Stillwater,MN 55082 Fax 651-351-0896 Associates LLC Proposal and Development Plan City of Hugo's Opportunity for Expansion R. A. Pearson & Associates LLC is submitting our proposal to the City of Hugo for the city owned 3.3 acre lot in Bald Eagle Industrial Park at the corner of Fenway Boulevard and Fenway Boulevard Circle. It is our intent to develop the land and build an office complex and warehouse to house the headquarters of R. A. Pearson & Associates, Pearson Mechanical Services Inc. and CAP Electric Inc. We are experienced family run businesses seeking to establish our headquarters in the Hugo area. R. A. Pearson LLC is a new company to manage our holdings however we are not a developer, we would be an end user. Pearson Mechanical Services Inc. is a Commercial and Residential mechanical contractor with employees ranging from 30 to 80 seasonally. CAP Electric is a Commercial Electrical contracting company employing 6 to 12 Seasonally. We are currently working on expanding our business to include Manufacturing and Distribution of work in conjunction with our existing enterprises. We are enthusiastic to begin construction and move our operations to your area. We are proposing to build an approximately 30,000 sq ft Precast Concrete Structure to match existing buildings in the development. This building would encompass our organization as follows: 0 Pearson Mechanical Services Inc. Office and warehouse 20,000 sq ft, • CAP Electric Office and warehouse 3,000 sq ft, • 7,000 sq ft for future expansion and growth We are also considering an additional building to house the manufacturing/Distribution of 20,000 plus sq ft., zoning permitted. The principles of our company and design team are as follows: Ronald A. Pearson is the CEO of R. A. Pearson & Associates, Pearson Mechanical Services Inc. and CAP Electric Inc. He is a current board Member of North Star Banks and the sheetmetal local-10 apprenticeship committee. He is the Former CEO & President of NewMech Co. Inc and Farrington Associates LLC. He served as National president of the Mechanical Contractors Association of America and the President of Minnesota Mechanical Contractors Association. Troy A. Pearson is the current President of Pearson Mechanical Services Inc. and CAP Electric. He is the Former VP/President Elect of NewMech Co. Inc. Craig R. Pearson is the current Vice President of Pearson Mechanical Services Inc. and CAP Electric and Former Vice President of NewMech Co. Inc. Brian R. Pearson is the current Vice President of Pearson Mechanical Services Inc. and CAP Electric and a former Division Manager of NewMech Co. Inc. Eric J. Pearson is a Superintendent for Pearson Mechanical Services Inc. and current Resident of Hugo. We believe that by the nature of the construction business we will be able to impact the area businesses positively by increasing customer traffic with our fleet of vehicles at gas stations, convenience stores, restaurants, and other retail businesses. We have completed several projects in the community, and have current contacts with many current resident businesses and believe in building relationships with business in our community and utilizing them within our organization. R. A. Pearson & Associates LLC is the financial arm of our ventures. A personal financial statement can be available upon request. However, our net worth exceeds Seven million dollars. As a reference you may contact North Star Bank 1820 North Lexington Ave, Roseville MN 55113. The contact person is John Markert, President. Upon award of contract R. A. Pearson & Associates will provide a non- refundable cash deposit of$10,000.00 as requested, within three days the balance of purchase price will also be paid. In conclusion We are eagerly waiting to broaden our business potential and there is no better place than the Hugo area. We feel strongly that we can add to a growing community. Our intent is to grow the companies in sales and thereby allowing , and creating job possibilities for the community. 2 Thank You for Your consideration. We know we can be a positive and productive Influence to your city and its residence. Sincerely .001; Troy A. Pearson President onald A. Pearson CEO 3 Proposed Site Plan Not to Scale --------------------------- --- Future � Manufacturing & Wetland/Pond Distributing ----------------------- O i Proposed Office C Parking&Drive � � �= <=^'-JVD-•vl —_ _— _.— _J� � C d_,b ^r � c {- June July August I Septembe October Novembe December January February March TAril Ma ID o TTask Name j Duration E B M E B M E B M E B M E B M E B M E B M E B M E B M E B M E M E B M 1 E3 Contract award 31 days , 2 Engineering&Planning 80 days 3 E3 City of Hugo Approval 0 days 10/28 4 Ground Breaking 0 days 10/28 5 13 Site Work 62 days 6 L3 Foundation 10 days? 7 E5 Walls 10 days 8 Roofing 10 days 9 13 Interior Concrete 10 days 10 0 Interior Rough in 20 days? 11 3 Mechanical Rough in 20 days? 12 3 Electrical Rough in 20 days? 133 Interior Finish 20 days? 14 d Mechanical Finish 20 days? 15 d Electrical Finish 10 days? 16 [3 Substantial Completion 0 days . 4/14 17 0 Asphalt 20 days? 18 0 Sod&Landscape 20 days? Task ,' Milestone ♦ External Tasks Project:Newoffice SplitSummary External Milestone Date:Thu 5/26/05 Progress Project Summary Deadline Page 1 5630 Memorial Ave. N Suite 100 Stillwater MN 55082 Main 651-275-1100 Fax 651-275-1107 ` www.pearsonms.com info(apearsonms.com Dear Building Contractor: Pearson Mechanical Services, Inc. has serviced the Twin Cities area for contractors and homeowners since 2001! Although the name is new, this company broke away from one of the largest mechanical contractors in Minnesota and has roots dating back to 1921. Pearson Mechanical Services, Inc. can exceed your expectations. We continually strive to improve our performance by: 1. Working with our customers to make the best Indoor Air Comfort decisions and to create a system that meets their needs and budget. o We have the capability of servicing and installing all makes and models of equipment. o We offer expertise in all energy efficiency options available from the major utilities! o Membership in trade organizations to provide on-going training: MCAA Mechanical Contractors Association of America MMCA Minnesota Mechanical Contractors Association MSCA Mechanical Service Contractors of America SMACNA Sheet Metal Air Conditioning Contractors National Association SMARCA Sheet Metal Air Conditioning Roofing Contractors Association ASHRAE American Society of Heating, Refrigerating and Air-Conditioning Engineers Minnesota Safety Council Minnesota Better Business Bureau 2. Providing our customers with the quality installation. o Installers are skilled Union workers. o Lead Installer has a minimum of 10 years of experience in the field. o Licensed, bonded and insured in your city. o Installers are leaders in customer service, and safety. o Whether it is single family home, or a high rise apartment project, we have the staffing capability to handle the job. 3. Providing our customers with follow-up service. 0 24-Hour Emergency Service and Radio Dispatched Service Vehicles. o Service Technicians participate in weekly customer service, safety and technical training. o Preferred Customer Service Agreements available for scheduled and emergency service. Pearson Mechanical Services, Inc. - The Easy Choice! 5630 Memorial Ave. N. Suite 1 Stillwater, MN 55082 Main 651-275-1100 Fax 651-275-1107 Providing Service to the Twin Cities Metropolitan Area Services Provided: • Sheet metal 24 HOUR SERVICE • Plumbing We specialize in servicing and • Heating upgrading non-residential buildings, • Building Control Systems heating, air conditioning and • HVAC Service and Maintenance temperature control systems. Our • Backflow Preventer Testing& service programs were developed by a Maintenance team of professionals committed to providing TENANT solutions that IMPROVEMENTS reduce client Customized tenant costs associated work is another with operating important part, of our HVAC systems. service. Frequently, We offer Full- this involves designing Coverage, and drafting special preventative systems. It also maintenance, involves plumbing, and customized Heating,air agreements conditioning and building controls for backed by 24-hour emergency service. performance Reviews new or existing spaces. An essential part of every agreement BACKFLOW PREVENTION sold is our follow-up,which allows clients to evaluate us on the services we Our Backflow prevention program provide. We also ask them to give us responds to the stricter enforcement of their perceptions,view and comments on codes that require Reduce Pressure our performance. This confirms they are Zones(RPZ) and double-check valve consistently receiving the highest type backflow preventers on water standard of service we have set for them systems. and ourselves. Codes require that these systems be Building Efficiency Analysis checked annually and rebuilt every five This analysis provides and important years to protect water supplies from starting point to establish services a contamination. Pearson has the certified client needs to maintain a worry free technicians to complete this work. operation. :ontractor tnical uses a total quality pA ?proach, including cost rial Ave. N. Suite 1 g, computerized ter, MN 55082 d dispatching, computer ind drafting(CADD), to '51-275-1100 tive and innovative 51-275-1107 our project needs. Control Systems -hanical is an authorized ve of two lines of direct rols;Novar and Teletrol. We e installation and service for >of pneumatic controls. With ngs, irces,we are able to offer an lution for each of our r ' needs. Minimal training is needed to monitor, I by a systems are flexible enough to operate, and maintain the system. to it-duty office buildings, Designed as a distributed Direct Digital I applications, commercial, and Control means the loss of that nal facilities. We have trained, communication to one module will not ent 1 technicians that provide both shut down the entire controls network. dated ion and service of installed Devices such as lighting, energy usage, ting phase loss, and card access can be terns. re based systems enable future monitored and tracked for trending and ements and assures both upward logging. Short-term payback is realized due to the better energy savings control logic. Extremely low on-going maintenance ped needs also make DDC systems i financially appealing. i d downward compatibility. The use of ,one modems allows remoter onitoring and troubleshooting. his software is extremely powerful and -ature-rich, while being simple to use. CA 5630 Memorial Ave.North Suite 1 Gr ISG, Stillwater, MN 55082 E& Main 651-275-8450 Fax 651-351-0908 Providing Service to the Twin Cities Metropolitan Area • New Commercial Wiring • Design Build Construction • Retrofit application • Low Voltage wiring • Control Wiring • Lighting retrofit • Residential Wiring Insured and Bonded In Minnesota and Wisconsin