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HomeMy WebLinkAbout2026.01.26 CC Packet - Goal Setting Workshop AGENDA City Council Goal Setting Workshop City Hall Council Chambers Monday, January 26, 2026 6:00 p.m. 1. Call to Order and Roll Call 2. Overview 3. Discussion on Hopkins Schoolhouse 4. 2026 Objectives 5. Selection of 2026 City Goals 6. Direction to Staff 7. Adjournment TO: City Council FROM: Bryan Bear, City Administrator SUBJECT: 2026 Goals DATE: January 22, 2026 for the City Council workshop of January 26, 2026 BACKGROUND: Attached to this memo is a copy of the 2025 Goals approved by the City Council last year, as well as the 2026 goals that were discussed in recent weeks by the Parks Commission, Planning Commission, Economic Development Authority and Historical Commission. I’d encourage you to review this information as you prepare the City’s goals for 2026. As you know, staff uses the goals developed by the Commissions and City Council to direct our work priorities in addition to our daily work assignments. As you consider setting the City’s goals, below is a review of projects the staff anticipates spending time on in 2026 based on prior Council direction and upcoming topics: Infrastructure: Pavement management program: The condition of city streets worsened substantially during the 2022/2023 winter. The severe winter accelerated the deterioration of streets and led to the Council’s decision to add revenue from the annual property tax levy to fund the street CIP. Staff recently completed the rating of all city streets and trails which has led to some re- prioritization of projects. The 2026 street project will include the streets within the Bald Eagle Industrial Park area. This year’s project will also involve modifications to the Railroad crossings on 130th and 140th Streets, possible changes to the traffic signals, trail improvements on Fenway and 130th Street, and changes to street lighting. Bridges: The Engineering staff has recommended replacement of two bridges in the City including the Forest Road bridge north of 175th Street and the Fable Hill Parkway bridge. Due to their poor ratings, both bridges are now eligible for state bridge bonding funds. Council has authorized staff to proceed with the engineering design of the bridges, which we expect to be complete soon. Following that, applications for the projects will be submitted to MnDOT for review and approval for bridge bonding funds. If approved, the projects go on a list for construction when funding becomes available, as appropriated by the Legislature. Ideally, construction would occur in 2027, to coincide with the Fable Hills street reconstruction project. CITY OF HUGO MEMORANDUM Infrastructure Planning: The 165th Street Corridor is primarily gravel between Hwy 61 and Elmcrest. The road will need improvements, including paving due to development pressures, anticipated increases in traffic volumes, and the need for traffic from the south to have better connectivity to a collector street. East of Hwy 61, there is also a pending development proposal. While the road in this section is paved, there is a need to extend the City’s sewer and water infrastructure to this area. Additionally, the City’s Parks Plan shows a recreational trail along the length of 165th Street. There is also a need to review planned land uses along this corridor, which is characterized by abundant natural resources. If the corridor and associated infrastructure is improved, it will be transformative for this part of the city. The City Council initiated a land use and infrastructure study coupled with an environmental review. Once the environmental review is complete this spring, the City will be ready to make decisions on the timing and scope of street improvements. Otter Lake Road. The City of Lino Lakes is planning to extend Otter Lake Road in 2026. The road would extend north from CSAH 14 and will join Elmcrest near the main entrance to Heritage Ponds at the Hugo border. Then, in future phases, the road would eventually continue north along the Elmcrest route to Forest Lake and Coumbus. Coordination of this project involves 4 cities and both Anoka and Washington Counties, and a cooperation agreement was signed between the entities last fall. In Hugo, connections to the new road at Heritage Parkway will involve a new intersection design, where it converges with both Elmcrest Ave, and Otter Lake Road. Elmcrest Ave is a gravel road north of 158th Street. Since the first phase of the Otter Lake Road project terminates in this vicinity, if no further improvements were made, it would dump large volumes of traffic onto a gravel road. For this reason, Hugo and Lino Lakes are planning for temporary paving improvements to Elmcrest from 158th Street north to 170th Street. Hugo would likely need to cost share for this project in 2026. Hwy 61. Washington County has recently completed the Hwy 61 visioning study. Fixed-route transit has been removed from this transportation corridor, which changes right-of- way needs, removes access controls and will impact future land use planning along the corridor. We now anticipate a discussion surrounding a “turnback” of the road to Washington County, and a discussion on needed corridor improvements in connection with a turnback. Ditches. City staff will continue working with the RCWD concerning ongoing minor maintenance of Judicial Ditches. Water: White Bear Lake Lawsuit. The saga continues. Following a decision last year from the Court of Appeals, the City is again preparing for a hearing with an Administrative Law Judge concerning the City’s Water Appropriation Permit and related conditions. Depending on how this plays out, the City may have several action steps to take. Meanwhile, the White Bear Lake Comprehensive Plan Work Group, is meeting, and is charged with recommending solutions to the lake level problem by the 2027 legislative session. The recommendations from this work group could be consequential to all communities in the northeast metro. Stormwater re-use. The City is using about 100 million gallons of storm water through this program on an annual basis. Construction is ongoing on several new projects that will be privately managed by Homeowners Associations. Staff continues to seek outside funds and project ideas for other re-use projects. City staff is reviewing the results of a study at this time conducted by Rice Creek Watershed District to evaluate the successes and failures of these projects and is improving processes that will lead to more effective operation of the systems. We also hope to identify possible enhancements to existing projects. Water Conservation. We will continue to seek new ways to lead in this area, but work has been hampered by the White Bear Lake lawsuit. Regional water studies that impact Hugo continue to be developed and updated. Staff reviews this data, participates on many task forces and committees and is involved in regional discussions involving water use. Dave Strub has been appointed as a member of MAWSAC. Fire Department: Administration. The City’s full-time Fire Chief has been implementing a work plan that incorporates Council’s objectives. The Chief has implemented changes to the organizational structure of the department, along with some operational adjustments. Physical improvements to the Fire Station are largely complete. In 2026, the Chief will determine the long-term future of the Fire Marshal position. Engine #2. The Fire Chief is developing a long-range plan for the department’s fleet of vehicles. The largest (and most expensive) trucks are on a 30-year replacement schedule, which means the tanker truck (Tender #1) is due for replacement in 2032, and the heavy rescue truck (Rescue #1) is due for replacement in 2034. The Chief is evaluating whether department operations would be improved if both trucks were to be replaced with a single Engine/Tender (think pumper-tanker combination truck), to be purchased as early as 2029. If things were to play out this way, it would result in substantial long-term savings for the City, although a major expenditure would occur earlier than planned. The Department’s operation has changed since these older trucks were originally purchased. A truck committee has been appointed comprised of select members of the Fire Department, and they are preparing recommendations for the Chief. The City’s 5-year equipment CIP will be evaluated to determine whether this type of purchase can be accommodated. Parks: Trails. City staff is partnering with Washington County for construction of the last section of the Hardwood Creek Trail. The County has obtained a portion of the needed funding from the State, but a funding source for the City’s share of the cost has not been identified. The 2026 street project will likely include trail reconstruction along Fenway between 130th and 140th Streets. The project also includes a trail connection along 130th Street. Trail Maintenance. Many sections of Existing Trails need maintenance. Two years ago, the staff completed the City’s first-ever trail ratings system and has integrated trail maintenance into the streets CIP. This new program will continue to be evaluated over the next several years. The city has developed better strategies for dealing with pesky “willow-pops” on trails and the success of that program, which started in 2025, will be evaluated. Veteran’s Memorial at Lion’s Volunteer Park. Council appointed a committee to make recommendations on a Veteran’s Memorial. The Committee is meeting on a monthly basis and will report to Council when they are ready. Neighborhood Parks. For 2026, the Parks Commission’s goals include plans to replace the playground at Frog Hollow Park. Programs. Since Covid, many of the community programming options that were previously provided through our many community partnerships, are no longer available for a variety of reasons. The Parks Planner is developing a strategy to increase programs and special events available to our residents, including a summer concert series at Lion’s Volunteer Park. Community and Economic Development: The Met Council Systems Statement is a document outlining Met Council expectations for City growth, along with certain requirements for development. The City Council has appealed the system statement because it places burdensome growth limits on the City. We are preparing for a hearing in front of an Administrative Law Judge this spring. Next steps will be decided after the judge’s ruling, but this undertaking could easily complicate or delay the initiation of the City’s 2050 Comprehensive Plan. Downtown Hugo and city-owned property. Development of this site remains a top priority for the EDA. With EDA direction, the staff is negotiating for sale and development of the property with “La Delicious,” for a restaurant, bakery, retail space and townhomes. Revisions to the City’s shoreland ordinance are necessary to provide certainty that a project can get DNR support for building near Egg Lake. The City’s Shoreland Ordinance is being evaluated. Following DNR resistance to the City’s downtown planning efforts, and with shoreland rules not making sense in other areas of the City, especially along Judicial Ditches, staff from the City and DNR are working toward more flexible standards that better meet the State’s conservation goals, and better interface with developments. In early 2026, we expect to have draft ordinance revisions presented to the Ordinance Review Committee for discussion. Apartments and Commercial market. Reacting to recent development approvals and new concept plans showing apartments, the Planning Commission adopted a goal in 2024 to evaluate whether higher density residential development should be encouraged in more areas of the City. This is a significant question that could impact sections of the City’s zoning ordinances and Comprehensive Plans. Discussion of High-Density Residential projects has involved land guided for commercial or mixed-use. In those circumstances, it would be prudent to also review the mixed-use areas, and commercial zoning districts. The City staff with help from its consulting staff has nearly completed this effort, which will be finalized by the Planning Commission this year. Both the Planning Commission and EDA have recently discussed commercial retail market conditions, and whether a market study or similar effort should be initiated. Single-Family regulations. With the market trending toward higher housing prices, and requests for smaller lots, the Planning Commission has initiated a discussion on zoning standards for single-family development. This discussion is running parallel with the apartment discussion and will be completed this year. Development Review. Ongoing review of developments in 2026 will include a multitude of residential projects, with many of them occurring along the 165th Street Corridor. The staff has received an application for development of much of the land along County Road 8. 2050 Comprehensive Plan. This plan must be complete by 2028, and the City will likely not begin this formal planning process until late in 2026. Prior to that, the City has identified urgent needs related to land use and infrastructure planning due to recent events along Hwy 61, 165th Street, and Elmcrest Ave that might cause us to begin planning work on small area studies. The ongoing review of apartments and single-family uses will affect the comp plan, as will new Met Council requirements for residential development density. The White Bear Lake Work Group recommendations may also have consequential impacts to the long-range development of the city. Unlike the 2040 plan, which was a simple plan update, the 2050 plan is lining up to be a major undertaking. Administration and Finance: Staffing. The City budget includes a vacant position for Deputy Clerk or something similar that could fulfill needs in a variety of areas including improved coordination of City-wide communications, website management, social media efforts, and room rental coordination. There are likely to be needs within the Finance Dept for additional help. The Fire Chief is evaluating the Fire Marshal’s job duties, and the Public Works Director has identified a need for help to assist the Public Works Mechanic. Personnel Policies. Council has recently adopted the new City Personnel Policy, which was a major staff project in 2025, and includes changes as required by the many new State and Federal mandates concerning employment and benefits. The policies are being implemented starting January, 2026. Fiscal Policies and Bond Rating. These policies have served the City well. Over the next year or two, the Finance staff will consider supplementing these policies with new measures that could improve the City’s bond rating. Software & Technology. The City uses some aging software packages that help manage all Finance and Building Department operations. These old platforms will not be supported by the software vendors beyond 2026. The City needs to upgrade these software packages. Funds have been budgeted for software upgrades this year, and staff anticipates choosing a vendor and implementing new software this year. Software changes of this type are typically time-consuming and disruptive. Hopkins Schoolhouse. The Hopkins Heritage Center has formed into a 501c3 to manage the restoration of the schoolhouse. The Council will discuss whether to assist the non-profit to accelerate the completion of the project. Facilities. Staff has mostly completed an in-house evaluation of all facilities to determine whether they continue to meet the needs of the citizens, and the working staff. It is likely that minor updates and enhancements will be advisable in the short-term. Major upgrades, new buildings, or building additions are longer term discussions. The staff is also reviewing internal processes and fees for room rentals. STAFF RECOMMENDATION: Staff recommends council use the information provided to discuss and prepare a list of goals for 2026. 2025 City Council Focus Goals •Promote conservation practices through education and incentives •Be a leader in regional activities related to water resource management •Complete evaluation of water reuse projects and consider enhancements •Strive to control our own destiny related to water supply •Address impacts of the White Bear Lake Court Order Conservation Efforts •Work toward development of the Egg Lake property on Hwy 61 •Continue working on programs to encourage new businesses and expansions •Strengthen partnerships with Washington County, HBA, and marketing entities •Seek infrastructure improvements to promote economic development Economic Development •Prepare and complete 165th Street area study •Complete studies on residential development standards and revise ordinances •Adopt revisions to the solar farms ordinance •Complete evaulation of shoreland regulations and adopt new standards •Prepare Local Affordable Housing Aid program Community Development •Reconstruct streets in Beaver Ponds and in Eastern Hugo •Complete design of local bridges and make application for bridge bonding funds •Complete ongoing ditch maintenance plan with RCWD •Prepare paving plan for 165th Street & Elmcrest Ave •Prepare for right-of-way and railroad impacts for 2026 street project Infrastructure •Replace the playground and make improvements to Oneka Lake Park •Prepare construction plans for trails in Clearwater Creek Preserve •Participate in planning for Hardwood Creek and Glacial Hills Regional Trails •Develop ongoing recreation programming strategy Parks Projects •Create Fire Department truck committee to recommend future fleet needs •Determine the future of the Fire Marshal position •Conduct regular evaluations of emergency services •Continue Fire Department recruitment efforts •Evaluate staffing needs of the Washington County Sheriff's Department Public Safety •Conduct complete employee benefits analysis •Complete minor improvements to City facilities as recommended •Update personnel and related HR policies •Evaluate staffing needs and organizational structure at City Hall •Begin process to review City's fiscal policies Administration 2025 Ongoing Priorities •Continue to provide training and education opportunities •Continue firefighter recruitment and retention •Continue internship program •Recruit qualified citizens for commissions •Provide adequate resources and technology •Monitor development activity and adjust staffing levels Maintain Quality Staff •Hold joint workshops with each Commission/Board •Continue training new Commissioners and Council Members •Continue to promote leadership within the Commissions/Boards Work Collaboratively with Commissioners •Develop long-term strategies for industrial development •Proceed with street reconstruction program •Share services with neighboring communities •Manage growth responsibly Build a Diverse and Stable Tax Base •Provide transparency by keeping up-to-date postings in newsletters, website, and cable bulletin board •Maintain relationships with HBA, Senior's Club, Lions Club, American Legion, Food Shelf, YRN, recreational and other civic organizations •Continue annual citywide bus tour •Expand social networking where possible •Continue open meetings with residents Continue Community Outreach Efforts •Keep apprised of legislative issues that impact budgeting •Remain involved in LMC and Metro Cities activities •Work with Greater MSP and other regional entities Maintain Legislative Relationships •Continue discussions with school districts, counties, watershed districts, neighboring municipalities and other local and state agencies on regional issues •Review police protection services annually Build and Maintain Regional Partnerships 2026 Goals Planning Commission •Evaluate and consider revisions to all zoning district regulations and performance standards. •Evaluate and consider zoning language and geographics for high density residential apartment projects in the City. •Evaluate and consider adoption of a mixed use zoning district. •Complete amendments to the shoreland ordinance with implementation flexibility. •Review and consider revisions to the Commercial and Industrial Design Guidelines related to new trends for building materials. •Stay informed on the Otter Lake Road extension. Land Use and Design Topics •Monitor trends in planning and development. •Keep updated on land use related topics. •Learn more about the commercial development market. •Use the City's website to keep the public informed of projects completed and or in development. Training/Presentation Topics •Implement the 2040 Comprehensive Plan. •Complete the 165th Street area study on infrastructure improvements and future land use in preparation of the 2050 Comprehensive Plan. •Prepare for the 2050 Comprehensive Plan update. Comprehensive Plan 2026 Goals Economic Development Authority (EDA) •Complete 165th Street AUAR related to infrastructure improvements and future land use. •Stay engaged in ordinance revisions pertaining to residential and commercially zoned property and make recommendations on land uses. •Encourage redevelopment and beautification of properties in the downtown area. •Continue working with developers interested in the City owned property and complete redevelopment plan. •Complete amendments to the shoreland ordinance with implementation flexibility. •Evaluate completion of a commercial market study. Development and Downtown Redevelopment •Continue to offer low development costs. •Engage with existing businesses to promote business expansions and retention. •Continue to be a resource for existing and new businesses. •Promote Washington County CDA grants and Open to Business Program. Maintain a Business Friendly Environment • • Continue memberships in economic development related associations. Stay informed on the progress of the Technology Corridor (I35E) planning and the extension and construction of Otter Lake Road. •Continue to encourage and monitor infrastructure improvements to promote economic development. Marketing / Promotion of the City •Continue partnering with local businesses and the HBA. •Continue to partner with Washington County CDA on its Economic Development Strategic Plan. •Work with property owners and buyers in the sale of commercial and industrial properties. Partnerships From:Kathleen Brevig To:Bradley LeTourneau; Cynthia Schoonover; Scott Cregan; dmakoch@aol.com; Gloria Gebhard; Michele Lindau; Craig Moen Subject:goals for 2026 and unoffical mtg notes of Jan. 26 Date:Wednesday, January 21, 2026 11:15:21 AM HUGO HISTORICAL COMMISSION JANUARY 20, 2026 No official meeting, Angela, Brad and Kathy were only ones able to attend. Brad did change out the display case and put in the new stained glasses 1928 date for Hopkins School. Mary and Craig designed and made it. Brad also added other items about Hopkins School. Officers of HHC will stay the same for 2026. Goals were decided on easily and will be passed on the Michele. Goals: Recruit more members for the HHC. Try to find an archivist intern. Organize, label and define storage areas for historical/display items, etc. in our storage area. Kb 1/21/26 1 CITY OF HUGO HISTORIC SITE LEASE AGREEMENT WHEREAS, the City of Hugo, 14669 Fitzgerald Avenue North, Hugo, MN 55038 (“City”) wants to share responsibilities for the operation of the Hopkins Schoolhouse Property, defined as 5970 170th Street North Site”) with the Forest Lake Historical Society (“Society”) and the Hopkins Schoolhouse and Heritage Center Nonprofit”); WHEREAS, the Society wishes to assume these responsibilities as temporary fiscal host and has agreed to requirements described in Exhibit A, and transition these responsibilities to the Nonprofit once formed; and WHEREAS, the City and the Society/Nonprofit intend that this Agreement will mutually benefit all parties and the Site by: conducting a capital campaign to raise funds for the schoolhouse restoration: increasing local interest in and support for the Site; reducing duplication and cost of services and programs; and improving and/or expanding the Site’s visitation, interpretation, promotion, security, and operations; NOW, THEREFORE, THIS AGREEMENT is entered into by and between the City and the Society/Nonprofit in consideration of the mutual promises and obligations set forth herein. The parties hereby agree as follows: 1. The Society/Nonprofit shall restore, manage, preserve, use, and otherwise interpret the site for historical, educational, and other compatible purposes for the City of Hugo’s Fiscal Years (FY) 2023 through 2038 the Site further described as follows: The City owned property located at 5970 170th St N, Hugo, MN 55038, known as the Hopkins Schoolhouse, legally described as All that part of the Southwest quarter of the Southeast quarter, (SW 1/4 of SE 1/4) Section Five (5), Township Thirty-one (31), Range Twenty-one (21), described as follows, to -wit: Beginning at the Southeast corner of said tract and running thence West along the South line of said tract twenty (20) rods; thence North on a line parallel with the East line of said tract sixteen (16) rods to a point; thence East on a line parallel with the South line -of said tract twenty' (20) rods, more or less, to the East line of said tract; thence South along the East line of said tract sixteen. 16) rods, more or less, to the place of beginning, containing two (2) acres, more or less. 2. The authorized agent of the Society for the purposes of this Agreement is the President, Forest Lake Historical Society. Any and all notices, reports, or other submissions to the Society shall be made to this individual or their successor in office at the following address: Justin Brink President Forest Lake Historical Society 107 South Shore Drive Forest Lake, MN 55025 The authorized agent of the Nonprofit for the purpose of this agreement is the President, Hopkins Schoolhouse and Heritage Center. Any and all notices, reports, or other submissions to the Nonprofit shall be made to this individual or their successor in office at the following address: Elizabeth Cinqueonce President Hopkins Schoolhouse and Heritage Center 14669 Fitzgerald Avenue North 2 Hugo, MN 55038 The authorized agent of the City for the purpose of this agreement is the City Administrator. Any and all notices, reports, or other submissions to the City shall be made to them or their successor, and any City approvals shall come from this individual or their successor at the following address. Bryan Bear City Administrator City of Hugo 14669 Fitzgerald Avenue North Hugo, MN 55038 3. The Society/Nonprofit shall be responsible for the operation, maintenance, interpretation, and other expenses of restoring and operating the Site, including the hiring, training, and supervision of any paid or volunteer staff or contractors necessary to fulfill the terms of this agreement. It is hereby expressly understood that any staff or contractors, so hired, trained, or supervised shall be employed/contracted by the Society/Nonprofit, not the City. In general, the Society/Nonprofit, shall administer, develop, and maintain the premises with reference to this Agreement. More specifically, the Society/Nonprofit shall assume regular operational responsibilities for the Site, including but not limited to, the following tasks: a. Procuring additional funds necessary to restore the Site and allowing the Society/Nonprofit to receive donations on behalf of the schoolhouse restoration project. b. Ensuring all volunteers participating in construction projects sign a waiver of liability that indemnifies and holds harmless the Society, the Nonprofit, and the City, as provided in Exhibit B. c. Securing the appropriate permits for each component of the restoration project and ensuring compliance with corresponding requirements. d. Ensuring that all aspects of the restoration and use of the building and/or property are in alignment with the established City zoning code rules, and that appropriate processes are followed to secure approvals for any proposed uses that are not aligned with the zoning code. e. Ensuring that contractors engaged for restoration projects meet City requirements, including: i. Contractor(s) shall be licensed and insured. ii. Contractor(s) shall not place any liens on the Site or property. iii. Contractor(s) shall obtain appropriate permits and be subject to applicable inspections. f. Recruiting, hiring, training, and supervising all Site personnel. g. Keeping the Site’s grounds and buildings open to the public for a minimum of 20 days per year once the building is restored, as evidenced by the issuance of a certificate of occupancy. h. Maintaining programs that are of a quality commensurate with the resources available and are consistent with uses described in the proposal to the City of Hugo, attached as Exhibit C. i. Promoting the Site in a manner that follows the City’s applicable brand guidelines and uses such means as news releases, posters, public service announcements, social media, except as otherwise provided for in this agreement. j. Maintaining and making minor repairs to the Site’s physical facilities such as grounds, gardens, buildings, etc. in accordance with this agreement. k. Maintaining and properly caring for the Site’s historic interiors, collections, furnishings, artifacts, and objects, whether on display or in storage at the Site. 3 l. Managing the collection of donations (monetary or otherwise), including but not limited to solicitation, acknowledgement, and cataloguing. m. Managing and supervising expenditures approved for the restoration of the Site. n. Maintaining clear documentation of ownership of artifacts stored and/or displayed at the site. i. All historical artifacts in the schoolhouse building are the property of the City of Hugo. ii. All historical artifacts contributed by the Hugo Historical Commission are the property of the City of Hugo. iii. All historical artifacts contributed by the Forest Lake Historical Society are the property of the Forest Lake Historical Society. iv. All historical artifacts donated to the Nonprofit are the property of the Nonprofit. o. Following the reasonable rules and regulations of the City of Hugo as adopted and amended from time to time, as provided in Exhibit F attached hereto. 4. The Society/Nonprofit shall report annually to the Hugo City Council in February of each year during the term of the lease. The report shall include a progress report on annual goals and measures of success presented to the council the previous year. The report shall address at minimum: progress on fundraising, restoration of the Site, and programs offered during the report year. The Society/Nonprofit shall also present the goals and measures of success for the next calendar year. a. Annual goals and measures of success for the initial year of the agreement are included as Exhibit D. The parties may add or modify annual goals and measures of success, pursuant to a written Change Order, executed by authorized representatives of each party, that specifies in sufficient detail the addition of annual goals and measures of success for subsequent years or modifications to previously adopted goals or measures. Parties agree that the change order shall be substantially in the form of Exhibit E. b. During the restoration period, the Hugo City Council shall evaluate performance on the annual goals and measures of success to determine whether the restoration is advancing as expected. If it is determined that the project is falling behind, the following actions will be taken: i. The Council shall implement a six-month probationary period with a corrective action plan that stipulates what milestones must be achieved during the six-month period for the project to proceed. ii. The Society/Non-profit shall report back to the Council at the conclusion of the six- month period on the established milestones. 1. If the Council determines all milestones have been achieved, the probationary period will be terminated, and the project will be allowed to proceed. 2. If the Council determines that all milestones have not been achieved, the Council shall determine whether to extend the probationary period or deliver written notice of its intent to terminate the agreement in 180 days. c. Following the restoration period, the Hugo City Council shall receive the report from the Nonprofit and provide feedback on the programs and services offered and identify opportunities for further collaboration. 5. The Society/Nonprofit may charge an admission fee(s) for entrance to and/or use of the Site. 4 6. The Society/Nonprofit may conduct a museum store program at the Site. Products sold in the museum store must reflect the mission, collections, and programs as described in Exhibit C, and may not include the sale of City of Hugo property, used items, or items offered on consignment. All costs associated with said program will be the responsibility of the Society/Nonprofit. All merchandise and resulting profit for said program will be the property of the Society/Nonprofit. 7. As consideration for its duties and responsibilities under this agreement, the City shall be responsible for: a. Authorizing the Society/Nonprofit to use the physical address for the City of Hugo in the formation of the Nonprofit. b. Waiving fees for permits, plan reviews, and inspections for building restoration projects. This provision does not apply to any fees required to establish connections to city sewer and water c. Providing basic lawn care and snow removal services. d. Covering the cost of utilities once the building is restored. 8. Once the Site is restored, as evidenced by the issuance of a certificate of occupancy, the Society/Nonprofit shall report to the City, on a timely and regular basis, any repairs that are needed as a result of normal operation of the Site. These include but are not limited to: minor roof repairs, minor structural repairs, limited window or door replacement, painting and finishing, safety, fire and security, and mechanical improvements. The City will evaluate these needs, and as appropriate, include them in the City’s annual budgeting process. This process does not, however, ensure that any particular need will be funded, nor does it give the Society/Nonprofit any specific right regarding such funding. 9. The Society/Nonprofit shall account for and assume responsibility for the artifacts and other tangible property donated or loaned to the Society/Nonprofit by parties other than the City. The City is not liable for, nor does it insure, any items at the Site that it does not own. 10. The Society/Nonprofit shall maintain the level of security established by the City and prohibit any use of the Site that violates security levels or is otherwise inappropriate in concert with the Washington County Sheriff's Department. 11. The Society/Nonprofit shall maintain the Site in a manner reasonably consistent with the historic appearance of the building. Selection of materials for restoration shall be at the discretion of the Society/Nonprofit, and shall appropriately balance the need for restoring the aesthetic historic appearance of the building with the need to ensure long term sustainability in maintaining the structure. 12. Upon expiration or termination of this Agreement, the Society/Nonprofit shall promptly remove its property and otherwise restore the Site to the City’s satisfaction. 13. The City hereby agrees to publicize the Site through its relevant marketing initiatives, to include, but not limited to social media, website, and publications. 14. The Society/Nonprofit hereby agrees to share marketing materials it creates related to the Site with the City’s staff, to include but not limited to newsletters, press releases, the Society’s website and electronic media related to the Site, and brochures. 5 15. The Society/Nonprofit shall comply with all applicable laws, statutes, and ordinances. 16. The City will maintain its general public liability insurance reasonably satisfactory to the City for the benefit of the Society/Nonprofit with respect to the operation of the Site pursuant to this agreement. The City shall not be liable to the Society/Nonprofit, its officers, directors, agents, or employees for any claim or loss arising as a result of, or related to, this Agreement, except insofar as such claim results from the City’s failure to perform its obligations hereunder. The City shall be an additional insured. 17. The Society/Nonprofit shall hold harmless, defend and indemnify the City in connection with any claims, suits, actions or judgments arising out of or relating to its use of or activities on the Property and those of its invitees. 18. The Society/Nonprofit agrees to hold the City harmless from any claims or charges arising in any way out of the operation of the premises and to reimburse the City for any and all losses it incurs as a result of such claims. The provision shall not, however, apply to such claims or losses for which the City or the Society/Nonprofit is provided coverage under the City’s general public liability insurance policies or umbrella policies. 19. The Society shall neither assign nor transfer any rights or obligations under the Agreement without the City’s prior written consent, except that the Society shall transfer all rights and obligations under this Agreement, as well as all unexpended funds donated to the Hopkins Schoolhouse project, to the Nonprofit once formed. At that time, the authorized agent shall transfer to the President of the Nonprofit for the purposes of this Agreement. Any and all notices, reports, or other submissions to the Society shall be made to this individual or their successor in office at the following address: Elizabeth Cinqueonce President Hopkins Schoolhouse and Heritage Center 14669 Fitzgerald Avenue North Hugo, Minnesota 55038 Once the rights and obligations under the agreement have been transferred to the Nonprofit, the Nonprofit shall neither assign nor transfer any rights or obligations under this Agreement without the City’s prior written consent. 20. Any and all amendments to this Agreement shall be in writing and executed by the same parties who executed the original Agreement, the authorized agent for the Nonprofit, or their successors in office. 21. This Agreement may be terminated by either party upon one hundred eighty(180) days’ prior written notice to the other party, in which case the Society/Nonprofit shall retain any unused funds to be used for mission-related purposes. 22. No residential use may be made of the Site. 23. If the City decides to sell or modify use of the property, the City shall provide a minimum two-years notice to the Society/Nonprofit and shall: 7 Exhibit A: Fiscal Sponsorship Agreement The Forest Lake Historical Society (“Fiscal Sponsor”) has determined that sponsorship of the formation of the Hopkins Schoolhouse and Heritage Center (“the Project” before incorporation) or (“the Sponsored Organization” after incorporation) are consistent with its goals and wishes to make arrangements with the City of Hugo for the implementation and operation of the Project. 1. The Forest Lake Historical Society hereby agrees to sponsor the Project/Sponsored Organization and to assume administrative, programmatic, financial, and legal responsibility for the purposes outlined in this proposal until such time as the Hopkins Schoolhouse and Heritage Center is (1) formally incorporated as a Minnesota non-profit organization; and (2) has secured a determination from the IRS confirming its status as a 501(c)(3) charitable organization. 2. The Forest Lake Historical Society agrees to implement and operate the Project as described in the proposal attached as Exhibit B, in accordance with the terms of this agreement and with requirements specified by the City of Hugo as described in the primary agreement. 3. The Project shall be operated in a manner consistent with the Fiscal Sponsor’s tax-exempt status and as described in this agreement. No material changes in the purposes or activities of the Project shall be made without prior written agreement of the City of Hugo. 4. The Fiscal Sponsor will provide the City of Hugo with reports describing activities on the Project milestones with the following schedule, or until such time as the duties are transitioned to the Nonprofit: Second Quarter – June 30 Third Quarter – September 30 Fourth Quarter – December 31 5. The Fiscal Sponsor will establish and operate for the use of the Project a designated account (“Account”) segregated on the Fiscal Sponsor’s books. All amounts deposited into the Project’s Account will be used in its support. 6. The Fiscal Sponsor will maintain all financial records relating to the Project according to generally accepted accounting principles, retain records as long as required by law, and make records available to auditors as required by law. 7. The Fiscal Sponsor and the Sponsored Organization will reflect the activities of the Project, to the extent required, on their state and federal government tax returns and financial reports. All disbursements from an Account shall be treated as payments made to or on behalf of the Sponsored Organization to accomplish the purposes of the Project. The Sponsored Organization will provide the Fiscal Sponsor with proper documentation to accomplish this, including furnishing the Fiscal Sponsor with the Sponsored Organization's Federal Employer Identification Number once secured. 8. Within 30 days of receipt of the IRS determination letter confirming the non-profit status of the new nonprofit, the Forest Lake Historical Society shall transfer all Project documentation, financial records, and funds deposited into its accounts for the Project to the Sponsored Organization. At such time, all obligations set forth in this agreement shall be transferred to the Hopkins Schoolhouse and Heritage Center, and the Forest Lake Historical Society shall be relieved of any obligations set forth herein, except for the retention of records as may be required by law. 8 Exhibit B: WAIVER OF LIABILITY Acknowledgement and Assumption of Risk I am aware of the dangers and the risks to my person and property involved while participating in the construction project sponsored by the Forest Lake Historical Society at the Hopkins Schoolhouse. I realize the activities involved may include digging, lifting and other physical activities of which I recognize the risk. I recognize that the work may involve the handling of sharp objects and I agree to wear thick work gloves when handling materials. Nevertheless, I voluntarily elect to participate in this construction project with knowledge of the danger involved, and I hereby agree to accept and assume any and all risks of property damage, personal injury, or death. The Forest Lake Historical Society and the City of Hugo do not insure participants in the above-referenced construction project, and participants who want to be covered must obtain their own insurance. The Forest Lake Historical Society and the City of Hugo asserts lack of responsibility or liability for injury resulting from this construction project. Waiver of Liability and Indemnification. In consideration for being allowed to voluntarily participate in the above-referenced construction project, on behalf of myself, my personal representatives, heirs, next of kin, successors, and assigns, I forever: a. Waive, release and discharge the Forest Lake Historical Society and the City of Hugo, its agencies, officers, and employees from any and all negligence and liability for my death, disability, personal injury, property damages, property theft or claims of any nature which may hereafter accrue to me and my estate as a direct or indirect result of my participation in the above-referenced construction project (excluding claims arising out of gross negligence or intentional misconduct); and b. Defend, indemnify and hold harmless the Forest Lake Historical Society and the City of Hugo, its agencies, officers, and employees from any and all claims of any nature, including all costs, expenses and attorney’s fees, which may in any manner result from or arise out of this agreement, except for claims resulting from or arising out of Forest Lake Historical Society and the City of Hugo’s negligence (excluding claims arising out of gross negligence or intentional misconduct). I hereby consent to receive medical treatment which may be deemed advisable in the event of injury, accident or illness during the construction project. This release, indemnification, and waiver shall be construed broadly to provide a release, indemnification, and waiver to the maximum extent permissible under applicable law. I, the undersigned participant, affirm that I am at least 18 years of age and am freely signing this agreement. I have read this form and fully understand that by signing this form, I am giving up legal rights and/or remedies which may otherwise be available to me regarding any losses I may sustain as a result of my participation in the construction project. I agree that if any portion is held invalid, the remainder will continue in full legal force and effect. READ BEFORE SIGNING Name: Signature Date Witness Name: Signature Date 9 Exhibit C: February 1, 2023, Proposal to City Council Proposal to City of Hugo for Preservation, Restoration, and Use of the Hopkins Schoolhouse February 1, 2023 Submitted by: Hopkins Schoolhouse & Heritage Center Steering Committee: Justin Brink, Liz Cinqueonce, Angela Minner, Craig Moen, Cindy Petty, Floyd Petty 10 Contents Letter from the Steering Committee .................................................................................................................................... 11 About the Steering Committee Members ............................................................................................................................ 12 Introduction .......................................................................................................................................................................... 13 Proposal Summary ................................................................................................................................................................ 13 Hopkins Schoolhouse and Heritage Center Mission ......................................................................................................... 13 Hopkins Schoolhouse and Heritage Center Vision (Uses of the Building/Site)................................................................. 13 Short Term Project Leadership ............................................................................................................................................. 14 Long Term Management ....................................................................................................................................................... 15 Business Model for the Hopkins Schoolhouse and Heritage Center .................................................................................... 15 Approach for Restoration of the Schoolhouse and Capital Fundraising ............................................................................... 16 Strategy for Maintaining Momentum ............................................................................................................................... 17 Position the Schoolhouse Restoration Project as the first Community Engagement and Leadership initiative run by the Hopkins Schoolhouse and Heritage Center. ........................................................................................................... 17 Leverage a Strategic Communications Plan to provide a front row seat to the restoration, highlighting the people who are engaged and contributing to the effort. ......................................................................................................... 18 Accomplishments August – September 2022 ....................................................................................................................... 18 Accomplishments October 2022 – January 2023 ................................................................................................................. 18 Project-to-Date Financial Summary ...................................................................................................................................... 21 In Kind Support ................................................................................................................................................................. 21 Calendar Year 2023 Preliminary Budget ............................................................................................................................... 22 Overview of Timeline for Restoration ................................................................................................................................... 23 2023 Project Milestones ....................................................................................................................................................... 23 11 Letter from the Steering Committee 12 About the Steering Committee Members The Steering Committee was formalized in August of 2022, and includes the following members: Justin Brink Justin serves as chair of the Steering Committee. He is a lifelong resident of Forest Lake and a Planning Commissioner. He is also the President of the Forest Lake Historical Society. Justin's past volunteer engagements include serving on the boards of directors for the Washington County Historical Society and Masquers Theatre, as well as volunteering with the Forest Lake Youth Service Bureau. He is a Registered Nurse and received his bachelor's degree from Bethel University. Craig Moen Craig serves as vice chair of the Steering Committee. He is a resident of Hugo and has been a member of the Hugo Historical Commission since 2014. In this capacity, he also serves as Hugo’s representative to the Washington County History and Museum network. Craig studied history at the University of Minnesota and is the author of “The Hugo Namesake Controversy” which proves Victor Hugo is the City’s namesake. Liz Cinqueonce Liz serves as the secretary of the Steering Committee. She is a resident of Hugo who grew up and raised her family in the community; her father attended school at the Hopkins Schoolhouse. Liz has more than 25 years of leadership and management experience in the non-profit and government sectors. She holds a bachelor’s degree in political science from the University of St Thomas, and a master’s degree in business administration from St Catherine University. Her other volunteer engagements include serving on the boards of directors for the Hugo Good Neighbors Food Shelf and the White Bear Lake Volleyball Club. Cindy Petty Cindy Petty serves as treasurer of the Steering Committee. She is a resident of Hugo who raised her family in Hugo and volunteered for numerous Hugo events and activities with them. She wants to save the schoolhouse for future generations to see, and to use it to celebrate the everyday citizens who made Hugo what it is today. She has done many fundraising events over the past 15 years for the Hugo Area Business Association and the Hugo Good Neighbors Food Shelf. She also helped increase membership in the HBA from 9 to 90 while on their leadership board. She is a former vice president and treasurer of the HBA, former Hugo EDA commissioner, current board member of the Hugo Good Neighbors Food Shelf, volunteer with the Yellow Ribbon Network, and a current Hugo Planning commissioner. Floyd Petty Floyd Petty serves as an at-large member of the Steering Committee. He is a resident of Hugo who raised his family in Hugo. He wants to save the schoolhouse to help maintain what historical buildings are left in Hugo. He has many years of volunteering with the Lions and the Hugo Good Neighbors Food Shelf, along with coaching his children's sports teams and volunteering at HBA events. He knows many citizens he can contact to volunteer with repair and upkeep of the schoolhouse. He is the current vice president of the Hugo Good Neighbors Food Shelf, a volunteer for the Yellow Ribbon Network, a former good neighbor of the year, and former Lion of the year. Angela Minner Angela serves as an at-large member of the Steering Committee. She is a resident of the City of Hugo and grew up in Forest Lake. Angela received a master’s in American Studies from Penn State University in a program specializing in material culture and historic preservation; her experience includes service as an intern and seasonal employee for the PA Historical and Museum Commission as a curatorial assistant at many of Pennsylvania’s state heritage sites and living history museums. Angela’s previous volunteerism includes youth sports, church, and school functions. 13 Introduction The enclosed proposal is submitted on behalf of the Hopkins Schoolhouse and Heritage Center Steering Committee that has been led by representatives of the Forest Lake Historical Society (“the Society”) and the Hugo Historical Commission the Commission”) in partnership with area residents. The proposal was developed in consideration of guidance provided by the City of Hugo at the community meeting held in April 2022, and addresses the following questions presented by City staff: What is the purpose for saving the building? What will the building/site be used for? What are the steps in the process? Who will lead the project and what are everyone’s roles? What is the plan for long term management of the building/site? What is the schedule? The proposal includes a summary of the accomplishments of the Hopkins Schoolhouse and Heritage Center Steering Committee in the six-month period since the committee was formed. The progress made has reinforced the committee’s confidence that there is both sufficient community interest and volunteer dedication to complete the work necessary to achieve the goals of the restoration project and to ensure ongoing sustainability. Proposal Summary The Hopkins Schoolhouse is one of the few remaining historic buildings in the area that offers an opportunity for citizens, and others passing through, to connect with the past and the cultural history of Hugo, Forest Lake, and the surrounding area in a tangible way. This proposal focuses on both the restoration/preservation of the Hopkins Schoolhouse and the creation of a new non-profit organization: the Hopkins Schoolhouse and Heritage Center (HSHC), that will benefit the community in several ways. Hopkins Schoolhouse and Heritage Center Mission Promoting community engagement and leadership by honoring the heritage of Hugo, Forest Lake, and surrounding area; highlighting historic examples of citizens who made a difference in the community; and offering a place for community members to gather. The mission statement for the new non-profit has evolved based on input from community members, and has been carefully crafted to ensure that the mission includes: 1. A clear link to why and how the heritage center is relevant to our community today – this is achieved by focusing on both honoring our heritage and building our future together. 2. A description of how the restored schoolhouse contributes to serving both purposes – serving as the home for historical displays and a meeting place. 3. Diversity in the focus of programs and services (community engagement, leadership, history) that can be offered by the Heritage Center – creating a pathway for similar diversity in the sources of revenue that can be accessed to ensure long-term sustainability. Hopkins Schoolhouse and Heritage Center Vision (Uses of the Building/Site) The Hopkins Schoolhouse and Heritage Center can benefit the community in several ways. Historic Schoolhouse The restored building will provide a visually appealing point of interest within the City of Hugo, where people will have the opportunity to not only read about – but experience what it was like to attend a one-room schoolhouse; and learn about the history of the building, its architecture, the various ways it was used by the community, and the stories of the teachers, students, and others who passed through its doors. 14 Historical Displays The restored schoolhouse will provide a home for the Hugo Historical Commission and the Forest Lake Historical Society, where they can showcase rotating displays that tell the stories of the civic leaders, businesses, and citizens who drove progress and made our community what it is today. Educational Displays The school grounds provide an opportunity for the partners to engage other organizations and companies in providing interactive educational displays that highlight cultural aspects that have been significant in shaping the community. Examples of interactive concepts that have been identified by community members are displays that recognize the Dakota tribes, early agriculture and farming methods, emergence and significance of the railroad, and the impact of rural electrification. Each display has the potential to connect the past to the present, and challenge visitors to consider their role in shaping the future. Community Engagement and Leadership Programs The Heritage Center’s focus on promoting community engagement and leadership provides an opportunity for the Heritage Center to partner with schools, local non-profits, and businesses – serving as a hub to connect area residents and youth with leadership programs and volunteer opportunities. Meeting Space The restored schoolhouse will also provide citizens and organizations actively engaged in the community with an additional place to gather for meetings and continue to advance progress in our community. Hardwood Creek Regional Trail Stop Even prior to the full restoration, the grounds can offer a place for those taking a break from the trails to rest, recharge, and learn about opportunities to get involved with the restoration of the building and creation of the Heritage Center and its programs. It is well established that museums and/or heritage centers as proposed here attract out of town visitors to the area who then patronize local businesses and eateries contributing to the local economy. As a testimonial to this fact, please reference the August 8, 2022, letter from Christine Maefsky, Mayor of the City of Scandia, included as Attachment 1. In her letter she describes how the Hay Lake School and the Gammelgarden Museum have contributed to their community’s economic vitality. Short Term Project Leadership As the new non-profit organization is being formed, a temporary fiscal host will be needed for the project. A draft Fiscal Sponsorship Agreement is enclosed as Attachment 2. The Forest Lake Historical Society (“the Society”) is a 501c-3 non-profit organization designated by the IRS as a public charity; its mission is to collect, preserve, and disseminate historical knowledge about the Forest Lake area. The Society has determined that sponsorship of the formation of the Hopkins Schoolhouse and Heritage Center is consistent with its goals and has agreed to serve as the temporary fiscal host for the project. In this capacity, the Society will serve as the temporary fiscal host organization for managing all governance, finance, legal, technical, and business operations outlined in the proposal, until the new non-profit is formed. This includes serving as the lead organization for any lease agreements, contracts, or insurance policies secured to carry out activities; preparing requests for proposals, securing bids, and selecting vendors as needed; developing and executing development plans and partnership agreements to secure necessary funding; recruiting and managing individual and corporate volunteers. Once the new non-profit is formed, these responsibilities will be transitioned, and the new organization will provide long-term management to carry out its mission and ensure the ongoing preservation and sustainability of the Hopkins Schoolhouse. The Hugo Historical Commission (“the Commission”), established by the City of Hugo in December 2002, will serve as a primary partner in leading the project. The role of the Commission is aligned with its mission as established by the City 15 of Hugo. This includes contributing important information and artifacts that the commission has located, collected, and preserved regarding the Hugo Community for displays; and playing a leadership role in determining and executing the strategies that will be used to educate the community, encourage personal and community responsibility for preserving our past, and fostering an understanding and appreciation of our history. The Hopkins Schoolhouse and Heritage Center Steering Committee would continue to lead the project during the formation of the new non-profit, and transition to parallel roles on the Board of Directors for the new organization. During the formation period, the Steering Committee will seek to recruit additional members to join the board of directors of the new nonprofit organization once formed. Long Term Management The new nonprofit Hopkins Schoolhouse and Heritage Center will be responsible for the long-term management, preservation, and sustainability of the Hopkins schoolhouse and programs offered through the heritage center. It will be governed by a board of directors that includes representatives from the Forest Lake Historical Society and the Hugo Historical Commission, in addition to area residents, educators, and business leaders. The initial Board of Directors and officers will include: Justin Brink, President (Ex-Officio, Voting Representative of Forest Lake Historical Society) Craig Moen, Vice President (Ex-Officio, Voting Representative of Hugo Historical Commission) Liz Cinqueonce, Secretary Cindy Petty, Treasurer Angela Minner, At-Large Member Floyd Petty, At-Large Member Draft Articles of Incorporation and Bylaws for the organization have been drafted and are enclosed as Attachments 3 and 4. Confirmation from David Snyder indicating Johnson & Turner will assist with the legal review of the governance documents on a volunteer and gratis basis is included as Attachment 5. B. Scott Binion has also confirmed that Haugen Binion CPA will assist with the nonprofit filings on a volunteer basis. Business Model for the Hopkins Schoolhouse and Heritage Center The business model for the Hopkins Schoolhouse and Heritage Center will include multiple revenue sources including but not limited to grants, program/service fees, event/rental fees, as well as corporate and individual donations. Further research is needed in each of these areas to build out the long-term business model for the Heritage Center. To that end, the University of St Catherine master’s in business administration (MBA) program has confirmed they will provide a team of 3-4 MBA capstone students during July and August of 2023 to consult on the development of the business plan. The letter of confirmation is included as Attachment 6. The specifics of the project requirements will be determined based on the status of the project in early summer, but the following are examples of activities and key questions that may be considered for inclusion in the project description: 1. Conduct a market analysis to identify what other entities may be providing similar services in the region. Define how their services and capacities are similar or different from what is envisioned for the Hopkins Schoolhouse and Heritage Center. Summarize trends and themes that illustrate what similarly positioned and successful organizations do and why it works, and develop recommendations to inform the long-term business plan for HSHC. 2. Review case studies of comparable non-profits, and summarize trends and key themes that emerge as factors for success. What are the programs and services that have emerged as key contributors to sustainability for 16 these organizations? What programs and services have emerged as unsustainable? How should the experience of these similar organizations inform the evolution of the business plan for HSHC? 3. Evaluate the Hopkins Schoolhouse and Heritage Center brand resonance with area residents, businesses, and nonprofits and summarize key findings pertaining to consumer insights, specifically highlighting the areas of greatest interest/need for the programs and services offered by the Hopkins Schoolhouse and Heritage Center. Deliver a roadmap and present a revenue model for program and service revenue during and after the Schoolhouse Restoration Period. 4. Expand on the initial grants analysis, conduct research, and document available funding opportunities (public and private), as well as corporate giving programs, that are aligned with each of the components included in the HSHC mission: community engagement, leadership, and historical preservation/education. Complete a feasibility assessment and deliver recommendations on the funding sources that should be prioritized based on the likelihood that the project is aligned with the goals of the funder, that the HSHC organization meets the qualifications required for applicants, and where the HSHC is well positioned to submit a competitive proposal. As noted in the letter from the University of St Catherine, “the capstone consultants are skilled professionals with experience in the workforce who have completed rigorous course work in the full range of business topics including management, strategic marketing, economics, accounting, corporate financing, and operations.” Approach for Restoration of the Schoolhouse and Capital Fundraising Restoration of the Schoolhouse Building is a long-term initiative that is estimated to require 6-8 years to complete. It is anticipated that each phase of the project will begin when the total amount of funds needed for the completion of the component has been secured. Each phase of work will be estimated separately, and the total cost of the phase will be used to establish and communicate fundraising goals. The phases identified for the project include: Phase 0: Grounds and Building Clean-up, and Preparation of Trail Stop. This phase of the project will span multiple years of the project, to progressively improve the condition of the schoolhouse grounds. This work will begin in the first year of the project with cleanup of the schoolhouse building and grounds, and engagement of community volunteers who are willing to contribute to the ongoing care of the grounds and help in monitoring the condition of the building and grounds. Throughout the project, the committee will also be consistently working to identify opportunities and secure donations and financial support to contribute to the development of the trail stop. Phase 1: Mothball Phase. In 2023, the committee will expand on on the interim measures (beyond the temporary covering of the roof, soffits, and chimney) to further secure, stabilize, and protect the building from further damage, degradation, and vandalism. The work completed during the mothball phase is important to buy time for fundraising for the permanent restoration to occur – and preventing further damage to the structure that would drive up costs for restoration. Phase 2: Roof, Chimney, Soffits, Siding. Restoration of clay unit masonry, rough carpentry, shingles, and siding will be completed in the second phase of the project. New estimates for repair of the roof and siding has been secured, and discussions are in progress with a local volunteer for repair of the chimney. Further information is provided in the budget section. The soffits have been identified as a component of the building that the Committee would prefer to have restored (rather than replaced), and research is underway to identify the best resource to complete this work. The estimates for Phase 2 have been used to establish fundraising goals for 2023. Phases 3-5: Interior Restoration. The final three phases of the project focus on interior restoration, which includes but is not limited to addressing rough carpentry, wood doors, wood windows, and painting, in addition to HVAC systems, electrical, gas, plumbing. The specifics of what is included in each of the remaining three phases have not yet been 17 determined. The Steering Committee will be consulting with volunteers with expertise in restoration during 2023 to inform the scope of work for each phase; the committee will then request estimates from local contractors to inform future fundraising goals. Strategy for Maintaining Momentum Recognizing the amount of time it will take to raise the funding to fully restore the schoolhouse, the Committee has closely considered how to maintain momentum in the years leading up to the opening of the heritage center, with a focus on ensuring that every dollar raised is used efficiently and effectively to accelerate progress toward the goal. Two key strategies have emerged: Position the Restoration Project as the first Community Engagement and Leadership initiative run by the Hopkins Schoolhouse and Heritage Center. Beyond raising the funds needed to restore the schoolhouse, the act of restoring the building provides an opportunity to demonstrate the mission of the new non-profit in action. To achieve this aim, we will: 1) Work to engage contractors from the local community to: Provide updated estimates on all phases of the restoration work. Enlist their support to approach vendors regarding donated materials and labor. Inquire about other local community and business leaders who may wish to get involved with the project. This is an approach that has already proven successful for the project. Highlighted Example: Doug and DJ Amundson with Precise Exteriors installed the temporary covering on the roof, soffit, and chimney on the building, paid the labor charges directly, volunteered several hours to help with planning, hanging solar lights and signage, and providing guidance on options available to approach the first two phases of the project. Precise Exteriors’ involvement saved the project more than $2,500 on the temporary roof and soffit covering. The new estimate provided by Precise Exteriors for the permanent repair of the roof and siding is approximately 145,000 less than the amount quoted in the preliminary cost estimate provided by Greiner in October of 2021. Beyond the work on the building, Doug has also made important connections to others in the community who are making impactful contributions to the project. This includes connecting the team with Brigg Backer who donated his time to produce and release the YouTube video helping to raise awareness of the project – the video has been viewed more than 1,100 times. 2) Seek to partner with training programs that: Engage with communities on restoration projects. Play a role in connecting students with community engagement initiatives. This strategy can both help to demonstrate the mission of the Heritage Center in action and help lower restoration costs. Highlighted Example: The Northern Bedrock Project is a nonprofit organization whose mission is to develop enduring workforce and life skills through service learning in historic preservation and community stewardship. They use a conservation corps model to provide young adults (18-25) hands-on experience and training in the historic preservation trades. Each crew includes 5-6 corps members who complete a 9-day hitch rotation. They work along technical instructors who teach and mentor them to maintain and repair historic resources, including structures. The Northern Bedrock Project has agreed to come out to the site (as soon as weather allows) to assess and make recommendations on projects that would be suitable for their corps. A key component of our landscape assessment will include identifying other potential partners (e.g. technical colleges, trade unions) that could partner in similar ways. 18 Leverage a strategic communications plan to provide a front row seat to the restoration, highlighting the people who are engaged and contributing to the effort. To-date communications for the project have been managed primarily through the Old Forest Lake and the Hopkins Schoolhouse and Heritage Center Facebook pages. While the committee has been able to engage with many area residents through that vehicle, it does not reach the full range of community members who may have an interest in this work. While social media will continue to be an important tool in distributing information on the project to community members, new channels for distributing information to community members will be added. One early operational investment will be the implementation of a customer relationship management system designed and priced for non-profits. The tool provides a mechanism to centralize project data and ensure that communications with stakeholders can be easily, routinely, and affordably managed. The system includes functionality to distribute electronic newsletters, manage volunteer projects/sign-ups, track data needed for reporting to funders, process donations, and manage event registration. Beyond direct communications with community members, the Committee will seek to partner with area businesses and non-profits to cross-promote volunteer opportunities, boost visibility of projects underway, and to recognize the difference volunteers are making in our community. Accomplishments August – September 2022 During the months of August and September, the Steering Committee focused on developing the initial concept for the proposal, and engaging with community members to better understand what they hoped the restoration of the schoolhouse would bring to the community. The primary mechanism used to gather community input were the Old Forest Lake and Hopkins Schoolhouse and Heritage Center Facebook pages. During this period, the committee met several times with the Snowmobile Association to explore opportunities to partner on the proposal to the City of Hugo. In October the two groups met with City staff for preliminary feedback on a joint proposal concept that would include both the restoration of the schoolhouse and the construction of a storage building and grooming station for the North Star Trail. A key benefit of the joint proposal concept was the potential for sharing costs for common needs (e.g. well, septic, utilities, parking). Following the meeting with City staff in October, the two groups mutually decided that the Steering Committee should proceed with the development of the proposal for the Hopkins Schoolhouse and Heritage Center, and revisit opportunities for the two organizations to partner in the future. City of Hugo staff agreed to request that the Council provide additional time for the Steering Committee to refine the proposal, and to allow the Committee to proceed with the temporary cover on the schoolhouse roof, soffits, and chimney, which was granted by the Council in October. Accomplishments October 2022 – January 2023 The following is a summary of what was accomplished during the period since the HSHC Steering Committee met with City of Hugo staff in October, and the Council acted to provide an extension for the committee to continue its work through the end of the year. Raising Public Awareness & Engaging the Community Developed logo and brand for Hopkins Schoolhouse and Heritage Center Built/launched website (https://hopkinsschoolhouse.org/) – 653 visits, 700 page views as of 1/31/2023 Developed/released video with local volunteer to share the HSHC vision with the community https://youtu.be/d8vB30Rd0nM). The video has been viewed more than 1,100 times. Installed HSHC sign on schoolhouse building with link to website 19 Ongoing promotions on social media via Old Forest Lake (5,569 members) and Hopkins Schoolhouse and Heritage Center (154 members) Facebook pages. Improvements to Protect the Schoolhouse Installed temporary roof, soffit, and chimney covering. Installed lights on the north, west, and east sides of the building for security. Completed temporary repair of stairs to basement and water-damaged floors to make it safe for contractors to enter. Hauled off a load of brush that was cut down by the city. Removed rocks and other debris that could be thrown through windows. Shored up wood over windows and doors. Painted over graffiti on the building. Preparation for Next Phase of Work on Building/Grounds: Received updated estimates for permanent repair of roof and siding: $31,000 for material and labor; Pending: estimates for permanent repair of chimney, soffit, and fascia Pending: engagement of Northern Bedrock to assess, scope project for summer 2023 Confirmed weekend for interior cleanup project – May 20-21, 2023* Confirmed weekend for initial grounds clean up – June 10-11, 2023* Secured commitment for local contractor to evaluate the status of the well on the property in the spring Contingent on approval from City of Hugo to move forward. Donated Items/Services from Businesses: Precise Exteriors LLC – paid $1,200 in labor costs for temporary roof covering Lebens – assistance with landscaping/plants, specifics pending Johnson & Turner – pro bono legal support for incorporation of new nonprofit Haugen Binion CPA – pro bono accounting support for new nonprofit Gene’s Disposal – assessing needs for disposal; working with committee on affordable options Donated Items/Services from Individuals: Donated items and services from individuals total approximately $3,300 and include: Printing of Brochures and sponsor materials Postage and mailing supplies for campaign Purchase of website domain Printing of signage for building Purchase of solar lights Purchase of paint/supplies to cover graffiti Plywood and materials for floor patching and reinforcement of window and door coverings Metal trash can and lid Videography to raise awareness of the project Fundraising from Businesses: Developed list of local businesses for targeted campaign Developed/distributed sponsorship information to 250 local businesses – See Attachments 7-9. o Contribution Confirmed: Blacksmith Lounge as $5,000 = Gold Sponsor o Contribution Confirmed: Premier Bank as $1,000 = Bronze Sponsor o Contribution Confirmed: Wise Guys Pizza $100 o Contribution Confirmed: Speedway $250 o Contribution Confirmed: Hugo Dental $50 o Pledge: Petty Investments $1,000 = Bronze Sponsor o Pledge: Hugo Historical Commission $1,000 = Bronze Sponsor o Contribution Pending: Lakes Floral – promotion through end of holiday season o Decision Pending: Deadbroke Saddle Club o Decision Pending: Hugo Lions o TOTAL Donated/pledged as of 1/31/2023: $8,400.00 20 Of note: Feedback from businesses noted the short turn-around time for a decision and the timing of the request for funds as challenges considering many are at the end of their fiscal year and have already spent down funds for charitable organizations. Fundraising from Individuals: Developed donor levels for individuals and promoted donation opportunities via the HSHC website, and the Old Forest Lake and Hopkins Schoolhouse and Heritage Center Facebook pages. Donations 2/1/2022-10/1/2022: $1,480 Donations since 10/1: $1,917.97 Pledge: $5,000 ($1000/year for 5 years) TOTAL donated/pledged as of 1/31/2023: $8,197.97 Fundraising from Granting Institutions: In progress: matrix detailing prospective granting organizations, funding potential, application requirements, and submission deadlines for 2023. Submitted three grant applications to local funders: o Forest Lake Lions Club Community Organization Investment Program. Application amount: $10,000. This grant was awarded in the amount of $1,200. o MidwestOne Bank Foundation. Application amount: Unspecified – sponsor levels provided. This proposal was not funded. The Steering Committee was encouraged to reapply. o Connexus Energy. Application amount: $25,000. The initial grant request was declined because the company’s focus areas for charitable giving are food and housing support for individuals. However, the group was encouraged to submit a revised request for a lower amount and in-kind services that could be funded out of other budgets to support the project. Preparation for the second grant is in progress. Business Planning: Drafted articles of incorporation and bylaws for new nonprofit Decided on initial board members and officers for the new nonprofit Secured letter of commitment from University of St Catherine for an MBA capstone team to assist with business planning during summer of 2023 In progress: preliminary business plan sufficient to proceed with the IRS application for exempt status In progress: review of national registry details to determine whether to proceed with the application process. 21 Project-to-Date Financial Summary The following is a summary of revenue and expenses for all the years where financial data are available. There are several items of note regarding the financial summary, including: 92% ($16,517) of the total revenue raised ($17,997) occurred between October 1 and January 31. During the push for funds in October - December, feedback from businesses and individuals indicated that: o The uncertainty about whether the City would approve the project and/or whether contributions would definitely be deductible for 2022 were noted as concerns. o The short turn-around for making a decision on the contribution was problematic because there was not sufficient time to bring the request before leadership/boards of directors. o The timing of the request was problematic because several businesses were wrapping up their fiscal years and had already spent down funds allocated for charitable organizations. In Kind Support In addition to the cash donations and pledges, an estimated $3,300 of donated materials and services were provided in- kind to the project by businesses and individuals between October 1 and January 31. In-kind donations included payment of labor expenses for the temporary covering on the roof and soffits, printing of the brochures and sponsor materials, postage and mailing supplies for campaign, signage for the building to promote the website, solar lights for the exterior of the building, graphic design and website, and materials for temporary repairs on the building. 22 Calendar Year 2023 Preliminary Budget Considering that 2023 will be a transition year where the new non-profit is just getting off the ground, and the project has not yet experienced a full 12-month fundraising cycle, it is difficult to precisely determine the level of revenue that is achievable. For purposes of 2023 budgeting, the committee used the most recent four months history as the basis for its projections. The following is the preliminary project budget for CY2023: Revenue assumptions: The project budget for 2023 assumes that average monthly contributions received during 2023 will be in line with the average amount of contributions/pledges received each month during the period of October 1-January 31. 16,517/4 = avg amount received per month: $4,129.25] The average amount of pledges received per month was then applied to the 11 months of fundraising time remaining in 2023 to arrive at the total revenue projection included in the 2023 budget. 4,129.25*11 = $45,421.75] Expense assumptions: Operational expenses for: administrative filings, insurance, printing/advertising, and implementation of customer relationship management software. Phase I assumes engagement with Northern Bedrock Corps for project in summer 2023. Expense/size of project will be scaled to funds available. Phase II assumes permanent replacement of components listed; work would not commence until the level of funding needed to complete the component is secured. The order of the component repairs would be: (1) Roof and Chimney; (2) Siding. Targeted grants. The initial grants assessment conducted identified the following opportunities for consideration in 2023. Additional research is underway on each opportunity, and the scan for new potential funders will be ongoing. During first quarter, the team will be completing its review of the criteria and implications of pursuing inclusion on the National Register of Historic Places, and assessing whether the advantages of being placed on the register (e.g. access to new grants) are likely to outweigh the risks (e.g. higher costs for specified materials). Grant Name Institution/Business Minimum Maximum NRHP Req Match Req Heritage Preservation Grants Minnesota Historical Society Unspecified Unspecified No Unspecified Heritage Partnership Program Minnesota Historical Society 10,000.00$ Unspecified No Evaluated Minnesota Historical & Cultural Heritage Grants (Small) Minnesota Historical Society Unspecified 9,999.00$ No Encouraged Minnesota Historical and Cultural Heritage Grants ( Large) Minnesota Historical Society 10,000.00$ Unspecified No Encouraged Save America's Treasures (SAT) Grant National Park Service 125,000.00$ Unspecified Yes Yes Community Connectedness Grant St Paul & Minnesota Foundation 10,000.00$ 75,000.00$ No Unspecified Community Impact Grant F.R. Bigelow Foundation 10,000.00$ 100,000.00$ No Unspecified Community Impact Grant Mardag Foundation 7,500.00$ 50,000.00$ No Unspecified N/A Hanifl Foundation Unspecified Unspecified No Unspecified N/A MidwestOne Bank Foundation Unspecified Unspecified No Unspecified N/A Connexus Energy 500.00$ 25,000.00$ No Unspecified 2023 Budget REVENUE 2023 Cash from Individuals 7,000.00$ Prior Year Pledges Paid (Ind)1,000.00$ Cash from Businesses 20,000.00$ Prior Year Pledges Paid (Bus)2,000.00$ Grant Revenue 15,000.00$ TOTAL REVENUE 45,000.00$ EXPENSE 2022 Operational Expenses 5,000.00$ Temporary Roof Covering -$ Phase 0 - Grounds & Clean-Up 1,000.00$ Phase 1 - Mothball Phase 12,000.00$ Phase 2 - Roof, Siding, Chimney 31,000.00$ Phase 3 - Interior Phase I -$ Phase 4 - Interior Phase II -$ Phase 5 - Interior Phase III -$ TOTAL EXPENSE 49,000.00$ 2023 Net (4,000.00)$ Beginning Cash Balance 9,585.36$ Ending Cash Balance 5,585.36$ 23 Overview of Timeline for Restoration The following is a high-level overview of the proposed schedule for restoration and creation of the Hopkins Schoolhouse and Heritage Center. If the project is approved to move forward, development of a detailed project plan for all years of the project will be developed in 2023. 2023 Project Milestones The following is a summary of major project activities/milestones identified for 2023. Governance/Finance Restoration Programs 2023 Contract(s) with City of Hugo Form new nonprofit Transition from fiscal host Board member recruitment Set up business operations Make determination regarding pursuit of national register status Complete grants assessment Complete long-range business plan for HSHC Begin implementation of the business plan – engage with community leaders to explore strategic partnerships. Prepare and submit grant applications to identified funders Round 2 Capital Campaign Focus: Phase 0,2 2023 Cleanup interior of building Cleanup grounds on site Develop site and volunteer engagement plan for grounds Confirm scopes of work for interior restoration phases; secure estimates Complete comprehensive project plan across all project years. Complete mothball stage Begin work on Phase 2 within available funds; 2023 Introduce restoration project as first community engagement program offered by HSHC Define scope of near term and long-term services as part of the business planning process Engage Washington County Community Gardeners on planning for program/display Engage local schools to gather input on opportunities to engage youth in the restoration project, and gather insights to inform program planning for the heritage center. 24 Exhibit D: 2023 Annual Goals and Measures of Success The annual goals and measures of success for the 2023 proposed by the Hopkins Schoolhouse and Heritage Center Steering Committee, as approved by the City of Hugo on May 15, 2023, are as follows: HSHC Approval: Approved on 03/29/2023 Hugo City Council Approval: Approved on 5/15/2023 Interim Written Reports: Sept, Dec. 2023 Final Report & Presentation to City Council: February 2024 2023 Goal Measures of Success 1. Finalize agreement with City of Hugo 1.a – City of Hugo & FL Historical Society contract complete. 1.b – Contract transitioned to new non-profit. 2. Form new nonprofit: Hopkins Schoolhouse & Heritage Center 2.a – New organization name reserved through MN Secretary of State’s Office. 2.b – Incorporated as a nonprofit organization with the MN Secretary of State’s Office. 2.c – Application submitted for Employer Identification Number/EIN Obtained. 2.d – IRS Form 1023 and Application for Tax-Exempt Status submitted to IRS/Determination Letter Obtained. 2.e – Application submitted to State of Minnesota for Sales Tax Exemption. 2.f – Registration as charity with the MN Attorney General’s Office Charities Division. 2.f – Recruit minimum of 10 total board members and 25 total volunteers. 2.g – Long term business plan complete. 3. Advance Progress on Restoration of Building 3.a – Trash removed from interior of building, historical artifacts from building interior catalogued. 3.b – Temporary cover removed, and permanent repair of roof and chimney completed. 3.c – Soffit and front stairs repaired. 4. Advance Improvements on Schoolhouse Grounds 4.a – Trash and debris removed from the site. 4.b – Trail cameras installed as added security measure. 4.c – Report produced summarizing community input on trail stop amenities. 4.d – Initial schoolhouse grounds plan submitted to the City of Hugo for approval. 5. Raise funding/donated services sufficient to support repairs on. exterior of the building 5.a – Support sufficient for repair of roof and soffit. 5.b – Support sufficient for repair of chimney. 5.c – 50% of funds necessary for repair of siding and windows. 25 Exhibit E: Change Order This Change Order to the Agreement (“Change Order”), is effective on this ___ day of _______, 20__ Change Order Effective Date”) and modifies the terms of the Agreement between the City of Hugo located at 14669 Fitzgerald Avenue North, Hugo, MN 55038, and the Forest Lake Historical Society, and the Hopkins Schoolhouse and Heritage Center. 1. Description of Proposed Change: Impact of change on: Description: Comments Parties to the Agreement Authorized Official(s) Measures of Success Schedule Other 2. Change Requestor: IN WITNESS WHEREOF, the parties have caused this Change Order to the Agreement to be executed as of the Change Order Effective Date by their duly authorized representatives. Change Order Effective Date: ______________________ Forest Lake Historical Society City of Hugo By: _____________________________ By:________________________ Name: ___________________________ Name:_______________________ Hopkins Schoolhouse & Heritage Center By:_______________________________ Name: ____________________________ 26 Exhibit F: Rules and Regulations 1. The sidewalks, entries, passages, elevators, public corridors and staircases of Property shall not be obstructed or used for any purpose other than ingress or egress. 2. Overnight occupancy is permitted. 3. Plumbing fixtures and appliances shall be used only for the purpose for which constructed, and no sweepings, rubbish, rags, or other unsuitable material shall be thrown or placed therein. The cost of repairing any stoppage or damage resulting to any such fixtures or appliances from misuse on the part of a tenant or such tenant’s officers, agents, servants, and employees shall be paid by such tenant. 4. Tenant shall not do anything, or permit anything to be done, in or about the Property, or bring or keep anything therein, that will in any way increase the possibility of fire or other casualty or obstruct or interfere with the rights of, or otherwise injure or annoy, other tenants, or do anything in conflict with the valid, pertinent laws, rules, or regulations of any governmental authority. 5. Tenant shall not place a load upon any floor of Property which exceeds the floor load per square foot which such floor was designed to carry (80-lbs. dead, 100 lbs. live) or which is allowed by applicable building code. Landlord may prescribe the weight and position of all safes and heavy installations which Tenant desires to place in Property so as properly to distribute the weight thereof. Landlord shall have the authority to prescribe the weight and position of safes or other heavy equipment which may overstress any portion of the floor. All damage done to Property by the improper placing of heavy items which overstress the floor will be repaired at the sole expense of the Tenant. Landlord reserves the right to have Landlord’s structural engineer review Tenant’s floor loads on Property at Tenant’s expense. 6. Tenant shall cooperate with Landlord’s agents and employees in keeping Property and their premises neat and clean. 7. Tenant shall not use or keep on Property any flammable or explosive, fluid or substance, or any illuminating material, unless it is battery powered, UL-approved, with the exception of any material or device to be used as part of the school programming or as required for the maintenance of Property. 8. Landlord has the right to evacuate Property in event of emergency or catastrophe. 9. If any governmental license or permit shall he required for the proper and lawful conduct of Tenant’s business, Tenant, before occupying Property, shall procure and maintain such license or permit and submit it for Landlord’s inspection. Tenant shall at all times comply with the terms of any such license or permit. 10. Tenant covenants and agrees that its use of Property shall not cause a discharge of more than the design flow gallonage per day of sanitary (non-industrial) sewage allowed under the sewage discharge permit(s) for Property. Discharges in excess of that amount, and any discharge of industrial sewage, shall only be permitted if Tenant, at its sole expense, shall have obtained all necessary permits and licenses therefor, including without limitation permits from state and local authorities having jurisdiction thereof. 27 11. Garbage, trash, rubbish, and refuse shall be kept in sanitary closed containers so as not to be visible to the public within the demised area. All trash shall be properly bagged or contained. 12. Tenant assumes full responsibility for protecting its space from theft, robbery and pilferage, which includes keeping doors locked and other means of entry to Property closed and secured. Tenant shall keep the Property free and clear of liens, claims, judgments and encumbrances. Violation of these rules, or any amendments thereof or additions thereto, may be considered a default of Tenant’s lease and shall be sufficient cause for termination of this Lease at the option of Landlord. Landlord reserves the right to rescind any of these Rules and Regulations and make such other and further rules and regulations not inconsistent with the express terms of the lease as in the judgment of Landlord shall from time to time be needed for the safety, protection, care, and cleanliness of Property, the operation thereof, the preservation of good order therein, and the protection and comfort of its tenants, their agents, employees, and invitees, which Rules and Regulations when made and notice thereof given to a tenant shall be binding upon him in like manner as if originally herein prescribed. In the event of any conflict, inconsistency, or other difference between the terms and provisions of these Rules and Regulations, as now or hereafter in effect, and the terms and provisions of the Lease to which these Rules and Regulations are attached, the Lease shall control. Status Unit Cost Quantity Estimate Subtotals Source Description Demolition and Gutting Asbestos Abatement Estimated 15,000.00$ R. Trudeau - Red Pine Industries Reviewing ARM survey and will be back in touch. Indicated if we are going down to the studs, abatement will be a smaller deal. Compliance with Renovation, Repair, Painting Rule Estimated 15,000.00$ R. Trudeau - Red Pine Industries Reviewing ARM survey - will refer us to contractor with RRP certification. Dumpster/Waste Removal Quoted 525.00$ 6 3,150.00$ Gene's 33,150.00$ Structural Repairs Foundation Repair Quoted 2,250.00$ B. LeTourneau Coalroom ceiling and floor Attic and Main Floor Joist Repairs Estimated 3,000.00$ Primarily in Chimney area and in bathroom area Basement Floor Repair/Leveling Quoted 1,000.00$ B. LeTourneau Basement stair chip and hole in the furnace room. 6,250.00$ Interior Restoration Hardwood Floor Repair & Refinish Quoted 10,000.00$ Dave's Floor West side of floor must be replaced on the main level. Remaining floors need to be refinished. Rebuild stairs and hardwood Quoted 9,000.00$ Dave's Floor Rebuild stringers, risers, treads and finish with hardwood. Framing/Reframing Estimated 20,000.00$ Adjustments for ADA, reframing water damaged areas, new framing in basement. Decorative Tin Ceiling Priced Out 17.00$ 200 3,400.00$ Decorative Tin Cove Molding Priced Out 150.00$ 20 3,000.00$ New and Restored Light Fixtures Estimated 8,000.00$ Drywall Quoted 21,000.00$ Universal drywall and spray.Main level, basement, ceiling Insulation Quoted 20,575.00$ Houle Insulation Foam for walls and ceiling. Blown to get to R50. Painting Priced Out 55.00$ 50 2,750.00$ Sherwin Williams Trim, Doors, Windows Estimated 15,000.00$ 112,725.00$ Bathrooms Bathroom Tile Donated -$ 0 -$ Materials and labor donated by J. Alwin - Functional bathroom only East side). Square Pedestal sink Priced Out 100.00$ 1 100.00$ Historic hardware/knobs Estimated 200.00$ Historic non-functioning fixtures Estimated 1,000.00$ Non-functional historic bathroom toilet, sink (west side) Vanity and Vanity Top Priced Out 250.00$ 1 250.00$ Beveled frameless mirror Priced Out 45.00$ 1 45.00$ ADA Toilet Priced Out 275.00$ 1 275.00$ ADA Handrails Priced Out 50.00$ 1 50.00$ Toilet Paper Holder Priced Out 20.00$ 1 20.00$ Soap Dispenser Priced Out 40.00$ 1 40.00$ Paper Towel Dispenser Priced Out 60.00$ 1 60.00$ 2,040.00$ Core Systems Electrical System Estimated 20,000.00$ Plumbing Quoted 13,279.00$ Bartylla Plumbing & Heating, Inc. Toilet and sink in bathroom and kitchen sink in basement. Septic will either need to be level with the floor, or have a pump installed. Hot water heater Estimated 3,000.00$ Bartylla Plumbing & Heating, Inc.Pending update to quote to confirm specific pricing Septic Design Estimated 2,000.00$ Septic System Estimated 20,000.00$ HVAC System Estimated 15,000.00$ Repair to Existing Well Quoted 7,592.50$ McCullough Quote includes labor and materials to clean, treat, and develop the well, and the necessary equipment to make it functional again. If well sealing is needed it will be an additional charge. If a stub is needed it will be $450. If the existing well cannot be used, a new well will be needed. Estimate $20,000 for new well. 80,871.50$ Exterior Improvements Building Signage Estimated 3,000.00$ 1 3,000.00$ Historic Hopkins Schoolhouse- Est. 1928 Exterior Lantern Lights Priced Out 250.00$ 3 750.00$ Exterior Flood Lights Priced Out 60.00$ 4 240.00$ ADA Compliant Lift - Front Porch Priced Out 10,000.00$ 1 10,000.00$ ADA Compliant Sidewalks Estimated 10,000.00$ Site Prep & Grading Estimated 15,000.00$ Asphalt Paving Estimated 72,000.00$ Drainage / Stormwater Management Estimated 20,000.00$ Curbing / Landscaping Estimated 15,000.00$ 145,990.00$ Furnishings & Finishing Touches Classroom furniture Estimated 2,000.00$ Display Cases / Historical Panels Estimated 1,000.00$ Storage Shelving / Cabinetry Estimated 500.00$ Interior Signage Estimated 1,000.00$ Donor recognition 4,500.00$ Estimated Total with Repair of Existing Well 385,526.50$ 7,592.00)$ Removal of repair to existing well 20,000.00$ New Well Estimated Total with New Well 397,934.50$ Dear Friends, For more than a century, the Hopkins Schoolhouse has stood as a cornerstone of the Hugo and Forest Lake community—a place where children learned, neighbors gathered, and stories began. Today, we have an opportunity to bring this beloved building back to life as the Hopkins Schoolhouse and Heritage Center, a space where our shared history can continue to inspire future generations. Your support will help us restore the heart of the Schoolhouse—its classrooms, library, and gathering spaces —while ensuring full accessibility and modern amenities for all. By sponsoring a room or making a donation to our restoration campaign, you’ll help preserve a vital piece of community heritage. Enclosed you’ll find details on sponsorship opportunities, donor recognition, and how your contribution can make a lasting impact. Together, we can open the doors of the Hopkins Schoolhouse once more. With gratitude, The Board of Directors Hopkins Schoolhouse and Heritage Center Campaign Overview The ‘Restore the Heart of Our History’ campaign will fund the complete interior restoration of the Hopkins Schoolhouse. This project will create a welcoming, educational, and accessible space that honors the past and serves the community for generations to come. Our 2025-2026 fundraising goal is approximately $270,000, which includes restoration of historic interiors, essential modern systems, and full ADA accessibility. Ways to Give You can support the restoration of the Hopkins Schoolhouse in several ways: Make a one-time or recurring donation by check or online. Sponsor a room or feature as outlined in this packet. Contribute building materials, furnishings, or professional services. Make a memorial or honorary gift in someone’s name. For more information or to discuss sponsorship opportunities, please contact: Hopkins Schoolhouse and Heritage Center Email: hopkinsschool.heritagecenter@gmail.com Phone: (651) 216-1242 Mail: Hopkins Schoolhouse and Heritage Center | 14669 Fitzgerald Avenue North Hugo, MN 55038 Heart of the Schoolhouse CampaignHeart of the Schoolhouse Campaign A LETTER TO OUR COMMUNITY Donate Historic SchoolroomHistoric Schoolroom Includes restoration of hardwood floors, tin ceiling, lighting, trim, and classroom furnishings. Recognition: Plaque reading “Historic School Room Sponsor presented by [Sponsor Name]”. SOLE SPONSOR: $35,000 OR 5 @ $7,000 Historic LibraryHistoric Library Includes framing, drywall, insulation, lighting, and cabinetry/display cases. Recognition: Plaque reading “Historic Library Sponsor presented by [Sponsor Name]”. SOLE SPONSOR: $20,000 OR 4 @ $5,000 Historic Coat Room and Lavatory Historic Coat Room and Lavatory Includes restoration of hardware, trim, and display of period artifacts. Recognition: Plaque reading “Historic Coat Room & Lavatory Sponsor presented by [Sponsor Name]”. SOLE SPONSOR: $10,000 OR 4@$2,500 Furnace and Coal RoomFurnace and Coal Room Preservation and interpretation of the original furnace and coal room. Recognition: Plaque reading “Historic Furnace & Coal Room Sponsor presented by [Sponsor Name]”. SOLE SPONSOR: $7,500 OR 10@$750 Cafeteria | Meeting RoomCafeteria | Meeting Room Supports refinished flooring, lighting, drywall, trim, and historical displays. Recognition: Plaque reading “Modern Meeting Room (Former Cafeteria) Sponsor presented by [Sponsor Name]”. SOLE SPONSOR: $25,000 OR 10@$2,500 Heart of the Schoolhouse CampaignHeart of the Schoolhouse Campaign SPECIAL SPONSORSHIP OPPORTUNITIES Modern Accessible Bathroom Modern Accessible Bathroom Supports ADA-compliant fixtures, finishes, and accessibility features. Recognition: Plaque reading “Modern Accessible Restroom Sponsor presented by [Sponsor Name]”. SOLE SPONSOR: $10,000 OR 4@$2,500 Project Transparency & Budget Summary Your donation directly supports restoration and accessibility improvements. For transparency purposes, a a summary of the primary project components is provided below. Heart of the Schoolhouse CampaignHeart of the Schoolhouse Campaign ENVISIONED FUTURE USES - UPSTAIRS MAIN LEVEL Historic Classroom | Multiple-Use Community Room Sample Setups: Historical Reenactment, Board-Style Meeting, Cocktail Reception, Wedding Historic Library | Community Room Extension Setups shown: Historical Library, Community Room Extender for Events Historic Coatroom | Lavatory Setups shown: (1) Historical Setup (2) Portable Coat Racks for Events/Meetings Historic Style | Modern Accessible Bathroom ADA-compliant fixtures, finishes, and accessibility features. Status Unit Cost Quantity Estimate Subtotals Actuals Status Source Description Structural Repairs Foundation Repair Quoted 2,250.00$ B. LeTourneau Coalroom ceiling and floor Basement Floor Repair/Leveling Quoted 1,000.00$ B. LeTourneau Basement stair chip and hole in the furnace room. 3,250.00$ Interior Restoration Hardwood Floor Repair & Refinish Quoted 10,000.00$ Dave's Floor West side of floor must be replaced on the main level. Remaining floors need to be refinished. Rebuild stairs and hardwood Quoted 9,000.00$ Dave's Floor Rebuild stringers, risers, treads and finish with hardwood. Decorative Tin Ceiling Priced Out 17.00$ 200 3,400.00$ Decorative Tin Cove Molding Priced Out 150.00$ 20 3,000.00$ New and Restored Light Fixtures Estimated 8,000.00$ Drywall Quoted 21,000.00$ Universal drywall and spray.Main level, basement, ceiling Insulation Quoted 20,575.00$ Houle Insulation Foam for walls and ceiling. Blown to get to R50. Painting Priced Out 55.00$ 50 2,750.00$ Sherwin Williams Trim, Doors, Windows Estimated 15,000.00$ 92,725.00$ Bathrooms Bathroom Tile Donated -$ 0 -$ Materials and labor donated by J. Alwin - Functional bathroom only (East side). Square Pedestal sink Priced Out 100.00$ 1 100.00$ Historic hardware/knobs Estimated 200.00$ Historic non-functioning fixtures Estimated 1,000.00$ Non-functional historic bathroom toilet, sink (west side) Vanity and Vanity Top Priced Out 250.00$ 1 250.00$ Beveled frameless mirror Priced Out 45.00$ 1 45.00$ ADA Toilet Priced Out 275.00$ 1 275.00$ ADA Handrails Priced Out 50.00$ 1 50.00$ Toilet Paper Holder Priced Out 20.00$ 1 20.00$ Soap Dispenser Priced Out 40.00$ 1 40.00$ Paper Towel Dispenser Priced Out 60.00$ 1 60.00$ 2,040.00$ Core Systems Electrical System Estimated 20,000.00$ Plumbing Quoted 13,279.00$ Bartylla Plumbing & Heating, Inc. Toilet and sink in bathroom and kitchen sink in basement. Septic will either need to be level with the floor, or have a pump installed. Hot water heater Estimated 3,000.00$ Bartylla Plumbing & Heating, Inc.Pending update to quote to confirm specific pricing Septic Design Estimated 2,000.00$ Septic System Estimated 20,000.00$ HVAC System Estimated 20,000.00$ Repair to Existing Well Quoted 7,592.50$ McCullough Quote includes labor and materials to clean, treat, and develop the well, and the necessary equipment to make it functional again. If well sealing is needed it will be an additional charge. If a stub is needed it will be $450. If the existing well cannot be used, a new well will be needed. Estimate $20,000 for new well. 85,871.50$ Exterior Improvements Building Signage Estimated 3,000.00$ 1 3,000.00$ Historic Hopkins Schoolhouse- Est. 1928 Exterior Lantern Lights Priced Out 250.00$ 3 750.00$ Exterior Flood Lights Priced Out 60.00$ 4 240.00$ ADA Compliant Lift - Front Porch Priced Out 10,000.00$ 1 10,000.00$ ADA Compliant Sidewalks Estimated 10,000.00$ Site Prep & Grading Estimated 15,000.00$ Asphalt Paving Estimated 72,000.00$ Drainage / Stormwater Management Estimated 20,000.00$ Curbing / Landscaping Estimated 15,000.00$ 145,990.00$ Furnishings & Finishing Touches Classroom furniture Estimated 2,000.00$ Display Cases / Historical Panels Estimated 1,000.00$ Storage Shelving / Cabinetry Estimated 500.00$ Interior Signage Estimated 1,000.00$ Donor recognition 4,500.00$ Estimated Total with Repair of Existing Well 334,376.50$ (7,592.00)$ Removal of repair to existing well 20,000.00$ New Well Estimated Total with New Well 346,784.50$ 2026 City Council Focus Goals •Promote conservation practices through education and incentives •Be a leader in regional activities related to water resource management •Continue enhancements to water re-use program •Strive to control our own destiny related to water supply •Address impacts of the White Bear Lake Court Order Conservation Efforts •Work toward development of the Egg Lake property on Hwy 61 •Continue working on programs to encourage new businesses and expansions •Strengthen partnerships with Washington County, HBA, and marketing entities •Seek infrastructure improvements to promote economic development •Participate in planning for Otter Lake Road and Elmcrest Ave corridor Economic Development •Complete 165th Street area study and determine public improvements •Complete ordinance amendments to zoning district regulations •Evaluate market conditions for reguiding of Commercial areas to Residential •Complete evaulation of shoreland regulations and adopt new standards •Resolve Met Council Systems Statement dispute and prepare for the 2050 Comprehensive Planning process Community Development •Reconstruct streets in the Bald Eagle Industrial Park area •Complete design of local bridges and make application for bridge bonding funds •Prepare paving plan for 165th Street •Coordinate with Lino Lakes for paving of Elmcrest Ave south of 170th Street Infrastructure •Replace the playground and make improvements to Frog Hollow Park •Plan for creation of Veteran's Memorial at Lion's Volunteer Park •Continue planning for completion of Hardwood Creek Trail •Develop ongoing recreation programming strategy Parks Projects •Evaulate equipment CIP to accommodate future Fire Department trucks •Determine the future of the Fire Marshal position •Conduct regular evaluations of emergency services •Continue Fire Department recruitment efforts •Evaluate staffing needs of the Washington County Sheriff's Department Public Safety •Complete evaluation of City facilities •Implement personnel and related HR policies •Evaluate staffing needs and organizational structure at City Hall •Initiate process to upgrade Finance and Building software •Begin process to review City's fiscal policies Administration 2026 Ongoing Priorities •Continue to provide training and education opportunities •Continue firefighter recruitment and retention •Continue internship program •Recruit qualified citizens for commissions •Provide adequate resources and technology •Monitor development activity and adjust staffing levels Maintain Quality Staff •Hold joint workshops with each Commission/Board •Continue training new Commissioners and Council Members •Continue to promote leadership within the Commissions/Boards Work Collaboratively with Commissioners •Develop long-term strategies for industrial development •Proceed with street reconstruction program •Share services with neighboring communities •Manage growth responsibly Build a Diverse and Stable Tax Base •Provide transparency by keeping up-to-date postings in newsletters, website, and cable bulletin board •Maintain relationships with HBA, Senior's Club, Lions Club, American Legion, Food Shelf, YRN, recreational and other civic organizations •Continue annual citywide bus tour •Expand social networking where possible •Continue open meetings with residents Continue Community Outreach Efforts •Keep apprised of legislative issues that impact budgeting •Remain involved in LMC and Metro Cities activities •Work with Greater MSP and other regional entities Maintain Legislative Relationships •Continue discussions with school districts, counties, watershed districts, neighboring municipalities and other local and state agencies on regional issues •Review police protection services annually Build and Maintain Regional Partnerships