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EDA Agenda - 06/07/2022AGENDA REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, lune 8, 2022 — 6:00 p.m. Mississippi Room, Monticello Community Center Commissioners: President Steve Johnson, Vice President Jon Morphew, Treasurer Tracy Hinz, 011ie Koropchak-White, Hali Sittig and Councilmembers Lloyd Hilgart and Jim Davidson Staff: Executive Director Jim Thares, Rachel Leonard, Angela Schumann, Sarah Rathlisberger and Hayden Stensgard 1. Call to Order 2. Roll Call 6:00 p.m. 3. Consideration of Additional Agenda Items 4. Consent Agenda a. Consideration of Approving Regular Meeting Minutes —April 27, 2022 b. Consideration of Approving Regular Meeting Minutes— May 11, 2022 c. Consideration of Approving Payment of Bills d. Consideration of Adopting Resolution No. 2022-12 Removing Parcels from TIF District No. 1-22 e. Consideration of Adopting Resolution No 42 Plan Budget f. Consideration of Adopting Resolution No 43 Plan Budget Regular Agenda 2022-13 Modifying TIF District No. 1- 2022-14 Modifying TIF District No. 1- 5. PUBLIC HEARING: EDA Land Sale — Lot 1, Bock 5 Country Club Manor First Addition 6. PUBLIC HEARING: EDA Land Sale — Lot 1-21, Block 1, Country Club Manor First Addition Lot 1-11, Block 2 Country Club Manor First Addition Lot 1-11, Block 3, Country Club Manor First Addition Lot 1-21, Block 4, Country Club Manor First Addition Outlot A, Country Club Manor First Addition Outlot B, County Club Manor First Addition Outlot C, Country Club Manor First Addition 7. Consideration of Adopting Resolution No. 2022-15 Authorizing a Purchase and Development Agreement with Headwaters Development for Lot 1, Block 5, Country Club Manor, First Addition, in the amount of $1.00 related to an Apartment development proposal in connection with and supported by Affordable Housing TIF District 1-42 8. Consideration of Adopting Resolution No. 2022-14 Authorizing a Purchase and Development Agreement with Headwaters Development for Lots 1-21, Block 1; Lots 1- 11, Block 2; Lots 1-11, Block 3; Lots 1-21, Block 4; Outlot A, Outlot B, and Outlot C, all in Country Club Manor, First Addition in the amount of $1.00 related to a Twin home Villas development proposal in connection with and supported by Affordable Housing TIF District 1-43 9. Consideration of endorsing Duffy Development's Low Income Housing Tax Credit application to Minnesota Housing Financing Agency (MHFA) related to a multi -family apartment development proposal and potential establishment of an Affordable Housing Tax Increment Financing (TIF) District 10. Consideration of Authorizing an Amendment to the WSB Structural Engineering Analysis Consulting contract scope of work and pricing in the amount of $###### related to Block 52 redevelopment demolition and construction activities 11. Economic Development Director's Report 12. Adjourn MIINUTES REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, April 27th, 2022 — 7:00 a.m. Mississippi Room, Monticello Community Center Commissioners Present: President Steve Johnson, Vice President Jon Morphew, Treasurer Tracy Hinz, 011ie Koropchak-White, Hali Sittig, Councilmember Jim Davidson Commissioners Absent: Mayor Lloyd Hilgart Staff Present: Executive Director Jim Thares, Angela Schumann, Hayden Stensgard 1. Call to Order President Steve Johnson called the regular meeting of the Monticello EDA to order at 7:00 a.m. 2. Roll Call 7:00 a.m. Mr. Johnson called the roll. 3. Consideration of Additional Agenda Items None 4. Consent Agenda a. Consideration of Adopting EDA Resolution No. 2022-11 authorizing entering into a MN -DEED Redevelopment Grant Agreement related to the Block 52 Redevelopment Funding Award in the amount of $517.500 TRACY HINZ MOVED TO APPROVE THE CONSENT AGENDA. OLLIE KOROPCHAK-WHITE SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 5-0. Regular Agenda 5. Consideration of Update and Direction regarding Mike Mitchel's dba Nicollet Investments request for permanent parking solution —154 East Broadway (Block 34) Executive Director Jim Thares provided an overview of the agenda item to the EDA and the public. The property located at 154 East Broadway does not have parking for the tenants of the building and the property owner. The EDA reviewed potential solutions in a prior regular meeting, and asked City staff to research added diagonal parking on Cedar Street East of the property. City staff researched this potential solution and are in agreement that there would not be enough added spaces to fully resolve the property's lack of parking. City staff recommended that a lease agreement for parking on the block may be the best solution. Commissioner Hali Sittig arrived at 7:13 a.m. Councilmember Davidson asked why the lease agreement would be necessary if the tenants are already parking in a vacant public lot on the block. Ms. Schumann clarified the property owner of 154 East Broadway was seeking private parking for the tenants of the building. The lease agreement would allow the City and the EDA to work with the property owner on parking during potential redevelopment in the future. The EDA came to a consensus that the property and its tenant can remain to use the public parking on the block without a lease agreement, and plan to work with the property owner on parking during redevelopment of the block. The EDA asked City staff to further convey this position with the developer and the City Council. 6. Consideration of Adopting Revised Facade Improvement Grant Program Guidelines Mr. Thares provided an overview of the agenda item to the EDA and the public. The revision in the grant guidelines is related to the eligibility area in downtown Monticello. The eligibility area would include the buildings to remain on block 52 following redevelopment. JON MORPHEW MOVED TO APPROVE THE AMENDMENT TO THE FAgADE IMPROVEMENT GRANT PROGRAM GUIDELINES. JIM DAVIDSON SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 6-0. 7. Consideration of Discussion of Draft Pooled TIF Allocation and Spending Plan Item 7 was presented to the EDA after item 8. Mr. Thares provided an overview of the agenda item to the EDA and the public. A workshop held on April 131h, 2022, provided a brief understanding of the scope of the allocation potentials. Mr. Thares recommended commissioners review the report for the time being and be prepared to discuss at a future workshop meeting due to time constraints. 8. Consideration of Update - Industrial Land Study — CET Grant Work Component, Bolton & Menk Staff Item 8 was presented to the EDA before item 7. Mr. Thares provided an overview of the agenda item to EDA and the public and introduced Bolton & Menk staff members Andrew Dresdner and Mike Thompson to provide an update on the Industrial Land Feasibility Study funded through the Community Energy Transition grant awarded to the City in March of 2021. Andrew Dresdner and Mike Thompson presented an overview of the Industrial Land Feasibility Study currently being prepared for the City of Monticello and its future growth areas for Industrial land use. A main purpose for the study included addressing the dynamics and opportunities on industrial land uses in Monticello, with particular emphasis on the east side of the City and on the northwest side of the community near the nuclear power plant on the south side of the freeway. Both the East and Northwest areas of study are roughly 1,300 acres. 9. Economic Development Director's Report Mr. Thares provided an overview of the agenda item to the EDA and the public. 10. Adjourn TRACY HINZ MOVED TO ADJOURN THE REGULAR MEETING OF THE MONTICELLO EDA. JIM DVIDSON SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 6-0. MINUTES REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, May 11, 2022 — 6:00 p.m. Mississippi Room, Monticello Community Center Commissioners Present: President Steve Johnson, Vice President Jon Morphew, 011ie Koropchak-White, Hali Sittig, Councilmember Jim Davidson Commissioners Absent: Treasurer Tracy Hinz, Mayor Lloyd Hilgart Staff Present: Executive Director Jim Thares, Angela Schumann, Haley Foster, Hayden Stensgard 1. Call to Order President Steve Johnson called the regular meeting of the Monticello EDA to order at 6:00 p.m. 2. Roll Call 6:00 p.m. Mr. Johnson called the roll. 3. Consideration of Additional Agenda Items None 4. Consent Agenda a. Consideration of Approving Regular Meeting Minutes — March 9, 2022 b. Consideration of Approving Regular Meeting Minutes — April 13, 202 c. Consideration of Approving Workshop Meeting Minutes — April 13, 2022 d. Consideration of Approving Payment of Bills OLLIE KOROPCHAK-WHITE MOVED TO APPROVE THE CONSENT AGENDA. JIM DAVIDSON SECONDED THE MOTION. MOTION CARRIED UNANIOUSLY, 5-0. Regular Agenda 5. Consideration of Draft Integrated Marketing and Communications Plan IIMCPI. Nicole Gaustad, Senior Marketing Specialist, AE2S Executive Director Jim Thares provided an overview of the agenda item to the EDA and public. The draft Integrated Marketing and Communications Plan created by AE2S Communications was funded through the Community Energy Transition (CET) grant awarded the City in March 2021 by the State of Minnesota. Final draft of the plan is expected to be completed by May 23, 2022. Nicole Gaustad, of AE2S, provided the EDA and the public with a presentation outlining the process and creation of the marketing plan. The goals focused on in the plan include employment recruitment and retention, executive leadership positions recruitment, manufacturer retention, recruitment and attraction, redevelopment & revitalization, and relationship building. These goals were previously discussed between the EDA, staff and AE2S in a prior workshop meeting. Ms. Gaustad then discussed the research conducted in the beginning stages of developing the plan as well as the results collected from the focus groups and discreet source research efforts. 6. Economic Development Director's Report Mr. Thares provided an overview of the agenda item to the EDA and the public. The prospects and projects were reviewed in detail. 7. Adjourn OLLIE KORPCHAK-WHITE MOVED TO ADJOURN THE REGULAR MEETING OF THE MONTICELLO EDA. HALI SITTIG SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 5-0, MEETING ADJOURNED AT 6:45 P.M. EDA Agenda: 06/08/22 4c. Consideration of Approving Payment of Bills (JT) A. REFERENCE AND BACKGROUND: Accounts Payable summary statements listing bills submitted during the previous month are included for review. B. ALTERNATIVE ACTIONS: 1. Motion to approve payment of bills through May 2022. 2. Motion to approve payment of bills through May 2022 with changes as directed by the EDA. C. STAFF RECOMMENDATION: Staff recommends approval of Alternative #1. D. SUPPORTING DATA: A. Accounts Payable Summary Statements Accounts Payable Transactions by Account CITY F �User: Julie.Cheney effo Printed: 05/04/2022 - 12:14PM Batch: 00202.05.2022 Account Number Vendor Description GL Date Check No Amount PO No 213-00000-220110 KENNEDY AND GRAVEN CHAR] TIF 1-44 - Washburn POS Economic I 05/10/2022 125463 1,550.00 213-00000-220110 KENNEDY AND GRAVEN CHAR] 21TOO 1 -Headwaters Apartment TIF - 05/10/2022 125463 2,790.00 Vendor Subtotal for Dept:00000 4,340.00 213-00000-220110 WSB & ASSOCIATES INC TIF 1-44 - 2022 Economic Dev Svcs 05/10/2022 0 715.50 Vendor Subtotal for Dept:00000 715.50 213-46301-430400 KENNEDY AND GRAVEN CHAR] Project Suburban Expansion Purchase 05/10/2022 125463 1,533.75 Vendor Subtotal for Dept:46301 1,533.75 213-46301-431993 WSB & ASSOCIATES INC 2022 Economic Services Monthly Ret 05/10/2022 0 900.00 213-46301-431993 WSB & ASSOCIATES INC Downtown Redevelopment Project - 05/10/2022 0 1,680.00 Vendor Subtotal for Dept:46301 2,580.00 213-46301-438100 PREFERRED TITLE INC reimbrs. - Xcel Energy pd. 41% Elev. 05/10/2022 125476 137.56 Vendor Subtotal for Dept:46301 137.56 Subtotal for Fund: 213 9,306.81 AP-Transactions by Account (05/04/2022 - 12:14 PM) Page 1 Account Number Vendor Description GL Date Check No Report Total: Amount PO No 9,306.81 AP -Transactions by Account (05/04/2022 - 12:14 PM) Page 2 Accounts Payable Transactions by Account User: Debbie.Davidson Printed: 05/18/2022 - 3:55PM Batch: 00203.05.2022 Account Number Vendor Description GL Date Check No CITYonticello Amount PO No 213-00000-220110 ECM PUBLISHERS INC TIF 1-45 - PH for TIF 1-45 Ad #1228 05/24/2022 0 250.75 Vendor Subtotal for Dept:00000 250.75 213-00000-220110 KENNEDY AND GRAVEN CHAR] TIF 1-45 - Block 52 Redevelopment - 05/24/2022 125532 1,174.00 213-00000-220110 KENNEDY AND GRAVEN CHAR] TIF 1-45 - 113 W Broadway - Feb 202 05/24/2022 125532 540.00 Vendor Subtotal for Dept:00000 1,714.00 213-00000-220110 NORTHLAND SECURITIES INC TIF 1-44 - Washburn - April 2022 05/24/2022 125538 4,300.00 213-00000-220110 NORTHLAND SECURITIES INC 21TOO 1 -TIF 1-42 -Headwaters Apart 05/24/2022 125538 215.00 213-00000-220110 NORTHLAND SECURITIES INC 21TOO 1 -TIF 1-43 - Headwaters Villas 05/24/2022 125538 215.00 213-00000-220110 NORTHLAND SECURITIES INC TIF 1-45 - Block 52 - April 2022 05/24/2022 125538 645.00 Vendor Subtotal for Dept:00000 5,375.00 213-46301-430400 KENNEDY AND GRAVEN CHAR] General EDA- Feb 2022 05/24/2022 125532 484.00 213-46301-430400 KENNEDYAND GRAVEN CHAR] 113 W Broadway - Feb 2022 (1/2) 05/24/2022 125532 44.00 Vendor Subtotal for Dept:46301 528.00 213-46301-431993 BOLTON AND MENK INC 202211 - Strategic Transition Plan/CE' 05/24/2022 0 4,162.00 213-46301-431993 BOLTON AND MENK INC 202211 - Industrial Land Use/CET Gra 05/24/2022 0 10,184.50 Vendor Subtotal for Dept:46301 14,346.50 AP -Transactions by Account (05/18/2022 - 3:55 PM) Page 1 Account Number Vendor Description GL Date Check No Amount PO No 213-46301-433100 JAMES THARES Milage Reimbursement - (186 Miles) 05/24/2022 0 108.81 Vendor Subtotal for Dept:46301 108.81 213-46301-434990 AE2 - ADVANCED ELEMENTS, R EDA Integrated Marketing & Commw 05/24/2022 125511 18,916.00 Vendor Subtotal for Dept:46301 18,916.00 Subtotal for Fund: 213 41,239.06 Report Total: 41,239.06 AP -Transactions by Account (05/18/2022 - 3:55 PM) Page 2 Accounts Payable Transactions by Account CITY F User: .David—d-1056Printed: 05/20/2022 - 3:31PM onti effo Batch: 00201.05.2022 Account Number Vendor Description GL Date Check No Amount PO No 213-46301-433100 US BANK CORPORATE PMT SYS Breezy Point Resort - Redevelopment 05/15/2022 0 306.03 213-46301-433100 US BANK CORPORATE PMT SYS MN DEED - Business & Community ] 05/15/2022 0 383.07 213-46301-433100 US BANK CORPORATE PMT SYS Breezy Point Resort - Redevelopment 05/15/2022 0 102.01 213-46301-433100 US BANK CORPORATE PMT SYS Breezy Point Resort - Redevelopment 05/15/2022 0 102.01 Vendor Subtotal for Dept:46301 893.12 213-46301-438200 CITY OF MONTICELLO 7256-004 - 130 Brdwy- Stormwtr 05/15/2022 0 26.25 213-46301-438200 CITY OF MONTICELLO 7256-007 - 103 Pine St- EDA 05/15/2022 0 45.50 213-46301-438200 CITY OF MONTICELLO 7256-008 - 112 River St. W EDA 05/15/2022 0 45.50 Vendor Subtotal for Dept:46301 117.25 213-46301-443990 US BANK CORPORATE PMT SYS Domino's Pizza -Food for EDA Meeti 05/15/2022 0 53.05 Vendor Subtotal for Dept:46301 53.05 Subtotal for Fund: 213 1,063.42 Report Total: 1,063.42 AP -Transactions by Account (05/20/2022 - 3:31 PM) Page 1 Accounts Payable Transactions by Account CITY F �User: Debbie.Davidsononti Printed: 06/01/2022 - 10:32AM effo Batch: 00215.05.2022 Account Number Vendor Description GL Date Check No Amount PO No 213-46301-438100 CENTERPOINT ENERGY 6402832805-8 - 113 Broadway W (1/2 05/31/2022 0 127.24 213-46301-438100 CENTERPOINT ENERGY 11688591-4 - 121 Broadway W 05/31/2022 0 117.50 Vendor Subtotal for Dept:46301 244.74 213-46301-438100 XCEL ENERGY 51-13295413-8 - 103 Pine St 05/31/2022 0 45.73 213-46301-438100 XCEL ENERGY 51-13295413-8 - 113 W Broadway 41' 05/31/2022 0 146.83 Vendor Subtotal for Dept:46301 192.56 213-46301-443990 DEMVI LLC Parking Lot Maintenance - May 2022 05/31/2022 0 213.86 Vendor Subtotal for Dept:46301 213.86 Subtotal for Fund: 213 651.16 Report Total: 651.16 The preceding list of bills payable totaling $52,260.45 was reviewed and approved for payment. Date: 6/8/2022 Approved by Tracy Hinz- Treasurer AP -Transactions by Account (06/01/2022 - 10:32 AM) Page 1 Accounts Payable Transactions by Account CITY F �User: Julie.Cheney effo Printed: 05/04/2022 - 12:14PM Batch: 00202.05.2022 Account Number Vendor Description GL Date Check No Amount PO No 213-00000-220110 KENNEDY AND GRAVEN CHAR] TIF 1-44 - Washburn POS Economic I 05/10/2022 125463 1,550.00 213-00000-220110 KENNEDY AND GRAVEN CHAR] 21TOO 1 -Headwaters Apartment TIF - 05/10/2022 125463 2,790.00 Vendor Subtotal for Dept:00000 4,340.00 213-00000-220110 WSB & ASSOCIATES INC TIF 1-44 - 2022 Economic Dev Svcs 05/10/2022 0 715.50 Vendor Subtotal for Dept:00000 715.50 213-46301-430400 KENNEDY AND GRAVEN CHAR] Project Suburban Expansion Purchase 05/10/2022 125463 1,533.75 Vendor Subtotal for Dept:46301 1,533.75 213-46301-431993 WSB & ASSOCIATES INC 2022 Economic Services Monthly Ret 05/10/2022 0 900.00 213-46301-431993 WSB & ASSOCIATES INC Downtown Redevelopment Project - 05/10/2022 0 1,680.00 Vendor Subtotal for Dept:46301 2,580.00 213-46301-438100 PREFERRED TITLE INC reimbrs. - Xcel Energy pd. 41% Elev. 05/10/2022 125476 137.56 Vendor Subtotal for Dept:46301 137.56 Subtotal for Fund: 213 9,306.81 AP-Transactions by Account (05/04/2022 - 12:14 PM) Page 1 Account Number Vendor Description GL Date Check No Report Total: Amount PO No 9,306.81 AP -Transactions by Account (05/04/2022 - 12:14 PM) Page 2 Page: 4 Kennedy & Graven, Chartered 150 South Fifth Street, Suite 700 Minneapolis, MN 55402 City of Monticello March 31, 2022 MN190-00172 Washburn POS Economic Development TIF District Through March 31, 2022 For All Legal Services As Follows: Hours Amount 3/7/2022 GAF Review TIF Plan 1.10 275.00 3/1012022 GAF Review J Thares' comments to TIF Plan 0.20 50.00 3/15/2022 LJK Draft planning commission resolution and notice of public 0.80 168.00 hearing 3/16/2022 GAF Review and revise planning commission resolution 0.30 75.00 3/24/2022 GAF Conference call with J Thares 0.20 50.00 3/25/2022 GAF Review and revise notice of public hearing-, draft email 0.20 50.00 regarding same 3/28/2022 LJK Send Planning Commission resolution to the City 0.10 21.00 3/29/2022 LJK Review timeline. 0.10 21.00 3/31/2022 LJK Draft City and EDA resolutions to approve the TIF District 4.00 840.00 and TIF Plan-, Draft EDA resolution for interfund loan Total Services: $ 11550.00 Total Services and Disbursements: $ 1,550.00 From: Jim Thares To: Julie Chenev Subject: RE: Kennedy & Graven (3) Date: Tuesday, May 3, 2022 3:22:46 PM Attachments: imaae001.a_na Julie, these are all okay to pay. Please code as shown below. From: Julie Cheney <Julie.Cheney@ci.monticello.mn.us> Sent: Wednesday, April 27, 2022 1:18 PM To: Jim Thares <Jim.Thares@ci.monticello.mn.us> Subject: Kennedy & Graven (3) Jim Please see the attached invoices from Kennedy & Graven: Inv# MN190-00171— Suburban Expansion Purchase & Develop Agreement - $1,533.75 213- 46301-430400 Inv# MN190-00170 — Headwaters Apartments TIF - $2,790.00 Headwaters TIF Escrow Account (I have requested additional funds for this account). Inv# MN190-00172 —Washburn POS Economic Dev TIF District - $1,550.00 - Washburn TIF Escrow Account (please see me with questions) Okay to pay? Please provide coding. Thanks, Julie Cheney Finance Assistant City of Monticello 763-271-3205 Julie.Chenev@ci.monticello.mn.us AP@ci.monticel lo.mn.us CITY OF Monticello Email correspondence to and from the City of Monticello government offices is subject to the Minnesota Government Data Practices Act and may be disclosed to third parties. Page: 1 Kennedy & Graven, Chartered 150 South Fifth Street, Suite 700 Minneapolis, MN 55402 City of Monticello March 31, 2022 MN190-00170 Headwaters Apartments TIF Through March 31, 2022 For All Legal Services As Follows: Hours Amount 3/2/2022 LJK Continue drafting TIF Assistance Agreement 1.00 210.00 3/8/2022 LJK Review and revise purchase and development agreement 1.40 294.00 3/22/2022 LJK Update purchase and development agreement with new 0.60 126.00 terms 3/23/2022 LJK Update Purchase and Development Agreement 1.00 210.00 3/30/2022 GAF Review and revise purchase and development agreement 7.80 1,950.00 Total Services: $ 2,790.00 Total Services and Disbursements: $ 2,790.00 APR 21 ap22 From: Jim Thares To: Julie Chenev Subject: RE: Kennedy & Graven (3) Date: Tuesday, May 3, 2022 3:22:46 PM Attachments: imaae001.a_na Julie, these are all okay to pay. Please code as shown below. From: Julie Cheney <Julie.Cheney@ci.monticello.mn.us> Sent: Wednesday, April 27, 2022 1:18 PM To: Jim Thares <Jim.Thares@ci.monticello.mn.us> Subject: Kennedy & Graven (3) Jim Please see the attached invoices from Kennedy & Graven: Inv# MN190-00171— Suburban Expansion Purchase & Develop Agreement - $1,533.75 213- 46301-430400 Inv# MN190-00170 — Headwaters Apartments TIF - $2,790.00 Headwaters TIF Escrow Account (I have requested additional funds for this account). Inv# MN190-00172 —Washburn POS Economic Dev TIF District - $1,550.00 - Washburn TIF Escrow Account (please see me with questions) Okay to pay? Please provide coding. Thanks, Julie Cheney Finance Assistant City of Monticello 763-271-3205 Julie.Chenev@ci.monticello.mn.us AP@ci.monticel lo.mn.us CITY OF Monticello Email correspondence to and from the City of Monticello government offices is subject to the Minnesota Government Data Practices Act and may be disclosed to third parties. Page: 2 Kennedy & Graven, Chartered 150 South Fifth Street, Suite 700 Minneapolis, MN 55402 City of Monticello March 31, 2022 MN190-00171 Project Suburban Expansion Purchase and Development Agreement Through March 31, 2022 For All Legal Services As Fallows: Flours Amount 3/2/2022 SCZ Review and analysis of three consent to plat documents 0.70 140.00 as drafted by Campbell Knutson; review of description of land being conveyed to Monticello, and drafting minor changes to legal description of land as provided by Campbell Knutson. Review of Chapter 505 for platting and consent -to -plat guidelines for sufficiency of consent to plat; in -firm communication to Sarah Sonsalla and Gina Fiorini indicating review and analysis completion, sending altered draft of Campbell Knutson's document, and suggesting further changes 3/6/2022 GAF Review and draft emails regarding deeds and recording 0.10 25.00 letter 3/7/2022 SJS Meet with S Zuehlke regarding deeds to be drafted; review 0.50 107.50 legal descriptions for deeds 3/8/2022 SCZ Drafting of three deeds; a quit claim deed from the City to 1.30 260.00 the EDA, a quit claim deed from the EDA to a limited liability company including a reverter, and a limited warranty deed from the limited liability company to the City. Review of business information from the Minnesota Secretary of State Website, and City information from City website; in -firm communication to Gina Fiorini and Sarah Sonsalla indicating drafts completion and additional notes on the deeds, including future revisions needed after approved purchase agreement 3/9/2022 SCZ Review of three dratted deeds per Sarah Sonsalla's 0.30 60.00 direction, including removing reference to property as Torrens property, altering reference to Purchase Agreement, and verifying proper signatory for the City of Monticello 3/9/2022 SJS Review title commitments and deeds; intraoffice 0.25 53.75 conference with S Zuehlke regarding changes to deeds 3/10/2022 GAF Review city council resolution approving transfer of land to 0.80 200.00 the City 3/15/2022 GAF Draft emails regarding notice of public hearing; review 0.20 50.00 same Page: 3 Kennedy & Graven, Chartered 150 South Fifth Street, Suite 700 Minneapolis, MN 55402 City of Monticello March 31, 2022 3/16/2022 SCZ Review of new purchase price per square foot for sale 0.30 60.00 under suburban expansion; review of purchase agreement provision and City email to determine square footage to determine purchase price; revising draft of purchase agreement to reflect updated purchase price; in -firm communication to Sarah Sonsalla and Gina Fiorini indicating draft complete as updated 3/25/2022 SCZ Review of email communication from G Fiorini, and email 0.20 40.00 communication from City requesting confirmation all of land intended to be conveyed to company is encompassed in the legal description in the conveying document; review of Plat and of land description; email communication to G Fiorini and S Sonsalla advising of results of analysing prior emails and both documents 312$12022 SJS Review and revise purchase agreement; review and revise 1.50 322.50 deeds; email A Schumann and J Thares regarding same 3/30/2022 SJS Revise deed from M & B, LLC to the city; email A 1.00 215.00 Schumann regarding same; revise purchase agreement; email J Thares regarding same; telephone conference with J Thares regarding changes to purchase price calculation Total Services: $ 1,533.75 Total Services and Disbursements: $ 1,533.75 From: Jim Thares To: Julie Chenev Subject: RE: Kennedy & Graven (3) Date: Tuesday, May 3, 2022 3:22:46 PM Attachments: imaae001.a_na Julie, these are all okay to pay. Please code as shown below. From: Julie Cheney <Julie.Cheney@ci.monticello.mn.us> Sent: Wednesday, April 27, 2022 1:18 PM To: Jim Thares <Jim.Thares@ci.monticello.mn.us> Subject: Kennedy & Graven (3) Jim Please see the attached invoices from Kennedy & Graven: Inv# MN190-00171— Suburban Expansion Purchase & Develop Agreement - $1,533.75 213- 46301-430400 Inv# MN190-00170 — Headwaters Apartments TIF - $2,790.00 Headwaters TIF Escrow Account (I have requested additional funds for this account). Inv# MN190-00172 —Washburn POS Economic Dev TIF District - $1,550.00 - Washburn TIF Escrow Account (please see me with questions) Okay to pay? Please provide coding. Thanks, Julie Cheney Finance Assistant City of Monticello 763-271-3205 Julie.Chenev@ci.monticello.mn.us AP@ci.monticel lo.mn.us CITY OF Monticello Email correspondence to and from the City of Monticello government offices is subject to the Minnesota Government Data Practices Act and may be disclosed to third parties. 701 XENIA AVENUE S SUITE 300 MINNEAPOLIS, MN 55415 wsb City of Monticello April 25, 2022 Attn: Sarah Rathlisberger, CPFO Finance Manager Project/Invoice: R-019675-000 - 3 505 Walnut Street, Suite 1 Reviewed by: Bret Weiss Monticello, MN 55362-8831 Project Manager: James Gromberg 2022 Economic Development Services City Staff Reviewer - Jim Thares GL Acct # 213.45301.431993 Professional Services from March 1 2022 to March 31 2022 Phase 001 Economic Development Services Monthly Retainer Monthly Retainer $900 / Lump Sum Fee $90 800 for this task Fee Total Fee 10,800.00 Percent Complete 25.00 Total Earned 2700.00 Previous Fee Billing 1,800.00 Current Fee Billing 900.00 Total Fee Special Projects Hours Gromberg, James 3/7/2022 .50 Washburn/Moon Motors Project Information for Jim Thares Gromberg, James 3/9/2022 2.50 Meeting with Moon Motoors/Wayne Elam Totals 3.00 Total Labor CET Grant Planning Gromberg, James 3/31/2022 Call with Mike WashburnPOS Project Totals Total Labor Total this Task Rate Amount 159.00 79.50 159.00 397.50 477.00 Total this Task Hours Rate Amount 1.50 159.00 238.50 1.50 238.50 Total this Task Total this Phase 900.00 $900.00 477.00 $477.00 238.50 $238.50 $1,615.50 Project R-019675-000 MONT - 2022 Economic Development Service Invoice 3 Total this Invoice $1,615.50 Outstanding Invoices Invoice Number 2 Total Billings to Date Fee Labor Totals Date Balance 3/29/2022 2,013.00 2,013.00 Total Now Due Current Prior Total 900.00 1.800.00 2,700.00 715.50 1,908.00 2,623.50 1,615.50 3,708.00 5,323.50 $3,628.50 Page 2 From: Jim Thares To: Julie Cheney Subject: RE: WSB (3) Date: Tuesday, May 3, 2022 3:05:37 PM Attachments: imacae001.a_na Julie, these are all okay to pay. Please code to accounts previously identified. From: Julie Cheney <Julie.Cheney@ci.monticello.mn.us> Sent: Thursday, April 28, 2022 2:58 PM To: Jim Thares <Jim.Thares@ci.monticello.mn.us> Subject: WSB (3) Jim Please see the attached invoices from WSB: Inv# R019674-000 — 2022 Economic Development - $1,615.50 Inv# R014511-000 — Downtown Redev Project - $1,680.00 Inv# R019194-000 — Shovel Ready Site Certification - $4,425.00 CET Grant Coding Okay to pay? Thank you, Julie Cheney Finance Assistant City of Monticello 763-271-3205 Julie.Cheney@ci.monticello.mn.us AP@ci.monticel lo.mn.us CITY OF Monticello Email correspondence to and from the City of Monticello government offices is subject to the Minnesota Government Data Practices Act and may be disclosed to third parties. 701 XENIA AVENUE s SWU 300 MINNEAPOLIS, MN 55418 City of Monticello Attn: Sarah Rathlisberger, CPFO Finance Manager 505 Walnut Street, Suite 1 Monticello, MN 55362-8831 =1 April 25, 2022 ProjecUlnvoice: R-014511-000 - 22 Reviewed by: Bret Weiss Project Manager: Penny Rolf Downtown Redev. Project - Monticello City Staff Reviewer - Jim Thares GL Acct # 213.46301.431993 Professional Services from March 9 2022 to March 31 2022 Phase 001 Downtown Redev, Project Acquisition Assistance Services Hours Rate Amount Rolf, Penny 3/1/2022 .50 192.00 96.00 email w/Alive Lutheran church re: personal property move and claim Rolf, Penny 3/2/2022 .50 192.00 96.00 emails w/EDA and Alive church re: personal property on site, emails to Alive Chruch and Innovative STucco re: status of claim checks Rolf, Penny 3/4/2022 .25 192.00 48.00 emails w/Elevated Wellness on their move out Ralf, Penny 3/7/2022 75 192.00 144.00 Prepare move claim - Elev. Wellness and send for signature Rolf, Penny 3/8/2022 .50 192.00 96.00 Elev. Wellness - finalize and submit move claim, sent claim to EDA, sent claim info to EDA for Alive church Rolf, Penny 3/9/2022 .25 192.00 48.00 emails w/Elev. Wellness re: payment of claim Rolf, Penny 3/10/2022 .50 192.00 96.00 Calls and emails with Alive Church Rolf, Penny 3/15/2022 .25 192.00 48.00 emails re: storage space for Preferred Title Rolf, Penny 3/16/2022 1.00 192.00 192.00 drafted Church claim for increased rent and emailed, review lease for Preferred Title - found errors and discussed wlCity staff, sent lease info to Preferred title for review and signature Rolf, Penny 3/18/2022 .25 192.00 48.00 Re -sent PDF claim form to Alive church Rolf, Penny 3/21/2022 .75 192.00 144.00 Emails and calls with Preferred Title and Alive Lutheran Church, emails w/Angela at City Rolf, Penny 3/22/2022 .25 192.00 48.00 email w/Alive church Rolf, Penny 3/24/2022 .50 192.00 96.00 call /Preferred Title re: storage and add'i benefits, emails w/Alive Church re: landlord items left on site Project R-014511-000 MONT - Downtown Redev. Project - Montice Invoice 22 Rolf, Penny 3/28/2022 1.25 192.00 240.00 Complete and submit Alive! Lutheran Church claim, upload pics of landlord items and email to Jim at EDA, emails w/ Preferred Title re: storage, Elev. Wellness emails re: claim documentation Rolf, Penny 3/29/2022 .50 192.00 96.00 Elev. Wellness - emails wltenant and City re: keysfinal inspection and move check, Preferred Title - email re: business cards, etc. Rolf, Penny 3/31/2022 .75 192.00 144.00 emails and calls re: relocation benefits with multiple tenants Totals 8.75 1,680.00 Total Labor 1 68000 Billing Limits Total Billings Limit Remaining Outstanding Invoices Invoice Number 21 Total Total this Task $1,680.00 Total this Phase $1,680.00 Current Prior To -Date 1,680.00 15,742.42 17,422,42 19,624.00 2,201.58 Total this Invoice _ $1,680.00 Date Balance 3/29/2022 2,352.00 2,352.00 Total Now Due $4,032.00 Page 2 From: Jim Thares To: Julie Cheney Subject: RE: WSB (3) Date: Tuesday, May 3, 2022 3:05:37 PM Attachments: imacae001.a_na Julie, these are all okay to pay. Please code to accounts previously identified. From: Julie Cheney <Julie.Cheney@ci.monticello.mn.us> Sent: Thursday, April 28, 2022 2:58 PM To: Jim Thares <Jim.Thares@ci.monticello.mn.us> Subject: WSB (3) Jim Please see the attached invoices from WSB: Inv# R019674-000 — 2022 Economic Development - $1,615.50 Inv# R014511-000 — Downtown Redev Project - $1,680.00 Inv# R019194-000 — Shovel Ready Site Certification - $4,425.00 CET Grant Coding Okay to pay? Thank you, Julie Cheney Finance Assistant City of Monticello 763-271-3205 Julie.Cheney@ci.monticello.mn.us AP@ci.monticel lo.mn.us CITY OF Monticello Email correspondence to and from the City of Monticello government offices is subject to the Minnesota Government Data Practices Act and may be disclosed to third parties. Debbie Davidson From: Liz Lindrud Sent: Monday, May 2, 2022 12:51 PM To: Katy Murphy; Debbie Davidson Cc: Cindy Heaton Subject: RE: 113 W. Broadway - Xcel Energy Reimbursement Hi Katy, I apologize, this should have been reimbursed earlier. You can expect to see $137.56 for the Elevated Wellness portion next week. Liz Lindrud From: Katy Murphy <katym@preferredtitle.biz> Sent: Monday, May 2, 2022 11:00 AM To: Debbie Davidson <Debbie.Davidson @ci.monticello.mn.us> Cc: Liz Lindrud <Liz.Lind rud@ci.monticello.mn.us>; Cindy Heaton <Cindyh@preferredtitle.biz> Subject: RE: 113 W. Broadway - Xcel Energy Reimbursement Good Morning, Just checking in as Preferred Title has not gotten reimbursed for the XCEL Energy bill yet? I have a bill to pay attached to the City of Monticello. I'd be happy to do so. Please let me know the status of our reimbursement check? Thank You! 6.1 lar- pAOVED Hiihfwlyh#p sulc4S 5ge## SuhihuuhgWlwd-l#lv#i{flwhg#wrf�dggrxqfh#z h#-,dyh#ip ryhg#wr#dl qhz #rfdwlrglWxu# h{ fhswlrgdc#fxvwrp hu#vhuylfh##z la*frgwlgxh#dw##rxu#qhz #riiifh#xfdwhg#-mvw#d##ihz #grruv# g r z q ##iur p ##r x u#r ag #r iilf h =# 5 5 8 #IZ hvw# E ur d g z d I # P rgwlfhocr/#P Q #88695# 1 Rxu#ip dk##frgwdfwv/#ahchskrgh#qxp ehu#Idgg#id{#qxp ehu#z ladkLp dlq#wkh#vdp hl# Z h#krrn#iruz dug#wr#vhuylgj #1 rx#dw#rxu#ghz #rfdwlrq$I# Katy C. Murphy Preferred Title, Inc. 225 West Broadway- P.O. Box 727 Monticello, MN 55362 P: 763-295-6140 F: 763-295-6456 Company State License No: 20048939 Individual License No: 20546902 katym@preferredtitle. biz www. preferredtitle. biz WARNING — FRAUDULENT FUNDING INSTRUCTIONS Email hacking and fraud are on the rise to fraudulently misdirect funds. Please call your escrow officer immediately using contact information found from an independent source, such as the sales contract or internet, to verify any funding instructions received. We are not responsible for any wires sent by you to an incorrect bank account. 2011, 2012, 2013, 2015, 2016, 2017, 2018, 2019, 2020, 2021 & 2022 Readers Choice Award for Best Title Company From: Katy Murphy Sent: Monday, February 28, 2022 2:28 PM To: Debbie Davidson <Debbie.Davidson@ci.monticello. mn.us> Cc: Liz Lindrud <Liz.Lindrud @ci.monticello.mn.us>; Cindy Heaton <Cindyh@preferredtitle.biz> Subject: RE: 113 W. Broadway - Xcel Energy Reimbursement Hello, Please see attached proof of payment to EXCEL Energy. We prefer you bill the tenant Elevated Wellness. Thank You! From: Debbie Davidson <Debbie.Davidson@ci.monticello. mn.us> Sent: Wednesday, February 16, 2022 3:28 PM To: Katy Murphy <katym@preferredtitle.biz> Cc: Liz Lindrud <Liz.Lindrud@ci.monticello.mn.us> Subject: FW: 113 W. Broadway - Xcel Energy Reimbursement Hello Katy, Regarding the Xcel Energy bills for 113 W. Broadway that you turned in to be reimbursed for. Our Senior Accountant, Liz, has broken down the reimbursement as follows: 1/6/22 Statement: 34 Days in billing cycle — 12/1-1/4/2022 16/34 = 47% 18/34 = 53% $480.14 x.47 = $225.67 $480.14 x.53 = $254.47 1/4-10/2022 Statement: 100% city = $81.04 City Total = $335.51 -to be billed as follows: 41% Elevated Wellness $137.56 and 59% Preferred Title $197.95 Please see our Finance Director, Sarah's, message below: After reading this you may decide it would be easier and faster to bill your tenant directly the 41%, which is $137.56. If you would prefer to have the city bill your tenant, we will need proof that the Xcel Energy bills were paid. Once we receive the proof our Accounts Receivable department will bill Elevated Wellness $137.56. Upon receiving their payment, we will then process a reimbursement payment to you in that same amount. Please let me know how you would like to proceed and if you have any questions. Thank you, pebb�e pav�dSov,, Finance Clerk City of Monticello 763-271-3225 Debbie.davidson@ci.monticello.mn.us ap@ci.monticello.mn.us Email correspondence to and from the City of Monticello government offices is subject to the Minnesota Government Data Practices Act and maybe disclosed to third parties. From: Sarah Rathlisberger <Sarah. Rath lisberger@ci.monticello. mn.us> Sent: Wednesday, February 16, 2022 8:33 AM To: Debbie Davidson<Debbie.Davidson @ci.monticello. m n. us>; Jim Tha res <Jim.Thares@ci.monticello. mn.us> Cc: Cheri Butler <Cheri.Butler@ci.monticello. mn.us>; Hayden Stensgard <Hayden.Stensgard@ci.monticello.mn.us>; Liz Lindrud <Liz.Lindrud@ci.monticello.mn.us> Subject: RE: 113 W. Broadway - Xcel Energy Reimbursement Debbie, I agree with Liz's calculation. Of the $335.51, 41% is billable to Elevated Wellness (Additional Tenant) and 59% is to be paid by Preferred Title (Tenant). Essentially, we need to bill Elevated Wellness for 41% of the $335.51 ($137.56). Per the agreement, once we collect from Elevated Wellness, we will then pay that amount to Preferred Title. However, the agreement specifically states that we do not have to pay until we get paid from "Additional Tenant" (Elevated Wellness). We also need proof from Preferred Title that the bill has actually been paid to Xcel. Alternatively, Preferred Title could collect the $137.56 directly from Elevated Wellness. 5. UTILITIES AND SERVICES. (a) UtiIity Charges. Tcnant shall be solely and excl usively responsible for the actual cost of the following utilities and any other building services nccas5ary For the Izawcl Premises as may bi� required by law or4irccted by gorcrnmenlal authority ("Utility Char9cs") which shat be paid by Tenant directly to the applicabIt service provider: i, CoslOra 11h,eatirig, ventilat ion andai.rcondi lion ingOfLhC1,cascdPrCMises including eltctricaI an -d gas; ii, Call of all oioaricily for lighting and operating bwittt:ss mar. hincs and other equipment in the Leased Promises: M. Cost of all wmtr and sewer, iv. Cast of interne[ services; V. Cyst of wcurily system, if applicable; Vi. Costs of refuse and retycli ng services; vii. Cast of all replacement of all lamps. bu]bs, starers. and ballasts used ii the Leased Premises. t'rovidtd, however, brat to the cxlcrnt Scnant provides to the Landlord a copy of invoices evidencing the appl kable ULi lily Charges, a long with c v ideace o f Tcnant's payment of i is pro rata share of such Utility Charges, the Landlord shall prorate such Utility Charges helween Tonam and Additiumil Tenant as described in Stomion 9.b. ofIhe Purchase Agrecrnont between Larrd lord :uid Tenant Baled as of November 10. 2021 (1hc "Purchase AgrccrncnC). and shall either reimburse Vcnant for such Uhi;ity Charges attributable to the Additional Tenant and paid by 1`enant. buy only Ro the cxlcnt of any Utility Charges actually received by Landlord from the Additional Tenanl. or shall collet[ such utility Charges directly from Additional Tcnanl, Cheri, let me or Liz know if you need any additional information to get this billed. Thank you, Sarah Rathlisberger, CPFO Finance Director City of Monticello, MN Tel: 763-271-3201 Fax: 763-295-4404 NOTE: The contents of this E-mail may contain information that is legally privileged and/or confidential to the named recipient. This information is not to be used by any other person and/or organization. The views expressed in this document do not necessarily reflect those of the City of Monticello. Email correspondence to and from City of Monticello government offices is subject to the Minnesota Government Data Practices and may be disclosed to third parties. Debbie Davidson From: Debbie Davidson Sent: Wednesday, February 16, 2022 3:28 PM To: Katy Murphy Cc: Liz Lindrud Subject: FW: 113 W. Broadway - Xcel Energy Reimbursement Attachments: Xcel 51-448881-3 Pref. Title.pdf Hello Katy, Regarding the Xcel Energy bills for 113 W. Broadway that you turned in to be reimbursed for. Our Senior Accountant, Liz, has broken down the reimbursement as follows: 1/6/22 Statement: 34 Days in billing cycle — 12/1-1/4/2022 16/34 = 47% 18/34 = 53% $480.14 x.47 = $225.67 $480.14 x.53 = $254.47 1/4-10/2022 Statement: 100% city = $81.04 City Total = $335.51 -to be billed as follows: 41% Elevated Wellness $137.56 and 59% Preferred Title $197.95 Please see our Finance Director, Sarah's, message below: After reading this you may decide it would be easier and faster to bill your tenant directly the 41%, which is $137.56. If you would prefer to have the city bill your tenant, we will need proof that the Xcel Energy bills were paid. Once we receive the proof our Accounts Receivable department will bill Elevated Wellness $137.56. Upon receiving their payment, we will then process a reimbursement payment to you in that same amount. Please let me know how you would like to proceed and if you have any questions. Thank you, T:�eWe ] aCM sow Finance Clerk City of Monticello 763-271-3225 t)ebbie.davidson@ci.monticello.mn.us a a ap@ci.monticel lo.mn.us Email correspondence to and from the City of Monticello government offices is subject to the Minnesota Government Data Practices Act and may be disclosed to third parties. From: Sarah Rathlisberger <Sarah. Rath Iisberger@ci.monticello.mn.us> Sent: Wednesday, February 16, 2022 8:33 AM To: Debbie Davidson<Debbie.Davidson @ci.monticello. m n. us>; Jim Thares <Jim.Thares@ci.monticello.mn.us> Cc: Cheri Butler <Cheri.Butler@ci. monticello. mn.us>; Hayden Stensgard <Hayden.Stensgard@ci.monticello.mn.us>; Liz Lindrud <Liz.Lind rud@ci.monticello.m n.us> Subject: RE: 113 W. Broadway - Xcel Energy Reimbursement Debbie, I agree with Liz's calculation. Of the $335.51, 41% is billable to Elevated Wellness (Additional Tenant) and 59% is to be paid by Preferred Title (Tenant). Essentially, we need to bill Elevated Wellness for 41% of the $335.51 ($137.56). Per the agreement, once we collect from Elevated Wellness, we will then pay that amount to Preferred Title. However, the agreement specifically states that we do not have to pay until we get paid from "Additional Tenant" (Elevated Wellness). We also need proof from Preferred Title that the bill has actually been paid to Xcel. Alternatively, Preferred Title could collect the $137.56 directly from Elevated Wellness. 5. UTILITIES AND SERVICES. (a) Utilitv Char }es. Tenant shall be solely and exclusively responsible for the actual MN32A45ti7Sh520.v5 cost of the following utilities and any other building services necessary for the Leased Premises as may be required by Is or direeled by governmental authority ("UtiIity Charges") which shat) be paid by Tenant directly to the applicable service provider: i. Cost of all heating, vewitation and airconditioning ofthe Leased Premises including electrical and gas; u. Cost of all electricity for lighting and operating business machines and other equipment in the Leased Premises: iii, Cosi of all water and sewer; iv. Cost of internet services; V, Cost of security system, if applicable; Vi. Costs of refuse and recycling services; vil, Cost of all replacement of all lamps, bulbs, starters. and bat lasts used in the Leased Premises. Provided, however, that to the extent Tenant provides to the Landlord a copy of invoices evidencing the applicable Utility Charges, along with evidence of Tenant's payment of its pro rata share of such Utility Charges, the Landlord snail prorate such Utility Charges between Tenant and Additional Tenant as described in Section 9.b. of the Purchase Agreement between Landlord and "Tenant dated as el' November 10, 2021 {the "Purchase Agreement"), and shall either reimburse Tenant for such Mility Charges attributable to the Additional Tenant and paid by Tenant, but only to the exlenl of any Utility Charges actually received by Landlord from lite Additional 'I enant. or shall collect such Utility Charges direel] y from Additional Tenant. Cheri, let me or Liz know if you need any additional information to get this billed. Thank you, Sarah Rathlisberger, CPFO Finance Director City of Monticello, MN Tel: 763-271-3201 Fax: 763-295-4404 NOTE: The contents of this E-mail may contain information that is legally privileged and/or confidential to the named recipient. This information is not to be used by any other person and/or organization. The views expressed in this document do not necessarily reflect those of the City of Monticello. Email correspondence to and from City of Monticello government offices is subject to the Minnesota Government Data Practices and may be disclosed to third parties. w 0 Xcel Ener® gy RESPONSIBLE BY NATURED DAILY AVERAGES LestYeer: Temperature 21°F Electricity kWh 93.6 Electricity Cest $11,79 QUESTIONS ABOUT YOUR BILL? See our website: xcelenergy.com Email us at: Customerservice@xcelenergy.com Please Call: 1-800-481-4700 Hearing Impaired: 1-800-895-4949 Fax: 1-800-311-0050 Or write us at: XCEL ENERGY PO BOX 8 EAU CLAIRE WI 54702-0008 7 XcelEnergy NORTHERN STATES POWER COMPANY SERVICE ADDRESS ACCOUNT NUMBER + CINDY A HEATO N 113 W BROADWAY ST MONTICELLO, MN 55362-9352 51-44886173 02/08/2022 STATEMENT NUMBER. STATEMENT DATE + r 763153018 01/11/2022 $551.18 SUMMARY OF CURRENT CHARGES (detailed charges begin on page 2) Electricity Service 01/04/22 -01110122 533 kWh $81,04 Current ChargesA ,t b $81.04 IVVWM ACCOUNT BALANCE (Balance de su cuenta) Previous Balance As of 01/04 No Payments Received Balance Forward Current Charges 1 Amount Due (Cantidad a pagan 5ht�ull4 C 1110-q- IM a* $480.14 Ser�1C.�7 $0.00 $480.14 $81.04 $561.18 ° INFORMATION ABOUT YOUR BILL V" _PfA211 a 1 I Interim electric rates became effective Jan. 1, 2022. See the enclosed bill insert for details. THIS IS YOUR FINAL BILL. Convenience at your service - Pay your bills electronically -fast and easy with Electronic Funds Transfer. Call us at 1-800-481-4700 or visit us at 389.09 ld 1-- f -1 o cQ C 1-1 -rvn A -M 0,40 t~ ID Vf- �� vvtN 1 a4 L) �- bu't'j prx olM6- C C6 �-- RE'UaV 9-T%%?. PCF7 py W i'H v 1i;R PAvMENIT . PLEASE 00 NOT USE STAPLES, TAPE OR PAPER CLIPS ACCOUNT NUMBER I DUE DATE 51-4488817-3 I 02/08/2022 1 $561.18 Please see the back of this bill for more information regarding the late payment charge. Pay on or before the date due to avoid aasessmentof a late payment charge. Make your check payable to XCEL ENERGY AV 02 018371 145738 81 A"SGT III IIIIJ1111111111111111111'1111111111111111'11111'11111'1111"I CINDY A HEATON PO BOX 727 MONTICELLO MN 55362-0727 1 2',3 45 6 7 9 10 11 12 13 14 15 j 16 117 18 19 20 21 22 23 1 24 25 26 27 28 1111111111i1111111111JAI Jill 111111111"'1$11111111111111111111111 XCEL ENERGY P,O. BOX 9477 MPLS MN 55484-9477 31 51020822 44888173 0000000810400000056118 Xce/Energy SAVE ON HIGH - EFFICIENCY FANS AND FAN SYSTEMS Rebates are now available for fan systems that are Fan Energy Index or FEI rated. Rebates range from $120 to $9,100, depending on horsepower and if the system is integrated with a VFD. The savings can help off -set your energy improvement project costs. Contact your account manager or one of our energy advisors at EnergyEfficiency@xcelenergy.com or call 855-839-8862. SERVICEADDRESS ACCOUNT NUMBER CINDY A HEATON 113 W BROADWAY ST MONTICELLO, MN 55362-9352 51-4486817-3 STATEMENT NUMBER STATEMENT DATE $561.18 763153018 01/11/2022 SERVICE ADDRESS: 113 W BROADWAY ST MONTICELLO, MN 55362-9352 NEXT READ DATE: FINAL BILL ELECTRICITY SERVICE DETAILS PREMISES NUMBER: 303140734 INVOICE NUMBER: 0943598606 METER READING 1 METER 7633803 Read Dates: 01/04/22-D1/t 0122 (6 Days) _ DESCRIPTIONCURRENT READING PREVIOUS READING _ T� atal Energy _ 16137 Estimate _USAGE 15604 Actual 533 kWh — Demand _ Estimate —_— — 9 64 kW --- . - -Billable Demand — 10 kW ELECTRICITY CHARGES RATE: General Service �. DESCRIPTION USAGE UNITS RATS CHARGE Basic Service Chg $5.13 Energy Charge 533 kWh $0034070 $18.16 Fuel Cost Charge 533 kWh $0025480 $13.58 Sales True Up 533 kWh $0008780 $4.68 Energy Chg Crd 373 kWh - $0.015180 - $5.66 CR Demand Charge Winter 2 kW $10.490000 $20.98 Affordability Chrg $0.72 Resource Adjustment $6.46 Interim Rate Adj — $522 -- - --- -- $69 .27 City Fees $6.20 Transit Improvement Tax 0.50% $0.37 - State Tax - 6.875% $5.20 Tata[ ------ - - ---- -- 581.04 TO SMALL POWER PRODUCERS AND COGENERATORS Federal and state laws require Xcel Energy and other utilities to buy all electric energy that qualified small power producers and cogenerators offer for sale. Qualified facilities may be interconnected with our system for this purpose. However, in Minnesota Xcel Energy is not required to make purchases from qualified facilities which are larger than 5 megawatts. Small power producers generate electricity using a renewable resource or waste product as fuel: garbage, peat, wood by-products, wind, water or sun. Cogenerators produce sequentially both electricity and useful heat energy. These facilities may use a non-renewable fuel, such as oil, natural gas or coal. An example is a paper mill that makes steam for electrical generation and, secondarily, for paper production. The Minnesota Public Utilities Commission regulates the purchase price and service interconnection requirements between qualifying facilities and utilities. The Commission also resolves disputes that might arise. Customers who are interested in parallel generation options may obtain Xcel Energy's interconnection guidelines materials for information on interconnection requirements. Visit xcelenergy.corn/HowTolnterconnect to find information about all interconnections. For specific on-site solar and other distributed generation interconnection application details, email 5olarProgramMN@xcelenergy.corm. For community solar garden information, email SRCMN@xcelenergy.com. To find out more about qualifying facilities and requirements for interconnection, please call 800.895.4999 (for residential customers) or 800-481-4700 (for all other customers). XcelEnergy VFDs CAN HELP DRIVE SAVINGS Variable frequency drives (VFDs) are used across industries to increase the efficiency of HVAC and motor -driven systems, including fans and water well pumps. If you're looking for ways to save money and reduce energy use, consider adding VFDs and earn rebates from $400 to $8,000 per unit, depending on horsepower. Learn more at xcelenergy.com/HVACR, l SERVICE ADDRESS ACCOUNT NUMBER CINDY A HEATON 113 W BROADWAY 5T 51-4488817-3 =12J08/2022 MONTICELLO, MN 55362-9352 STATEMENTNUMBER STATEMENTDATEi 763153018 01/11/2022 $561.18 INFORMATION ABOUT YOUR BILL This month's Resource Adjustment includes an increase in the Transmission Cost Recovery Adjustment (TCR), which recovers the costs of transmission and distribution investments, including delivery of renewable energy sources to customers. The TCR portion of the Resource Adjustment is $0.003614 per kWh for Residential Customers; $0.003191 per kWh for Commercial (Non -Demand) customers; and $0.984 per kW for Demand billed customers. This bill reflects an estimate. We are committed to obtaining monthly actual meter readings. At times circumstances may prevent us from obtaining an actual read. If you feel this estimate is above or below your average billing this will be corrected when we obtain an actual reading. For an average non -demand customer, 68% of your bili refers to power plant costs, 15% to high voltage line costs, and 17% to the cost of local wires connected to your business. For an average demand -billed customer, 78% of your total bill refers to power plant costs, 14% to high voltage lines, and 8% to the cost of local wires connected to your business. AVOID THE CLUTTER OF YOUR PAPER BILL. Paperless billing can be conveniently accessed online at any time and is an environmentally -friendly way to manage and pay your bill. To enroll or find more billing and payment options, visit xcelenergy.com/Paperless. Electric Emergencies BM.895.1999 24 hours, 7 days a week Natural Gas Emergencies: U.B95.2999 24 hours, 7 days a week Residential Customer Service:` 800.995.4999 7 a.m.-7 p.m., Mon. -Fri. 9 a.ri p.m., Sat. Busmess Solutions Genter ` 800.491.4700 B a.m.-5 p.m., Mnn.-Fri, TTO/TTY 900.895.4949 24 hours, 7 days a week Call Before You Dig 811 24 hours, 7 days a week Geaerallaauiries" Pawni Xcal Energy Xcel Energy PO BOX PO Box 9477 Eau Claire, Wt 54702-UMB Minneapolis, MN 55484-9477 xcalenergy.com Please include stub for faster processing. 'Regi any inquiry or complaint at the ahem. A tee some cities impose that Xcel Energy collects from customers and pays directly to the city. Electronic Check Conversion When you pay your bill by check, in most cases Xcel Energy will use your check information to make a one-time electronic debit from your checking account on the day we receive your check. There are no fees for this electronic conversion. In all other cases we will process your check. Eavii onmental lutoneation Fuels used to generate electricity have different casts, reliability and air emissions. For more information, contact Xcel Energy at 800.895.4999 or online at xcelenergy.com- You can also contact the Minnesota Department of Commerce at httpllmn-govlcommerce/ or the Minnesota Pollution Control Agency at hitpsliwww.pce.state.mn.uslquick-hnkslelectricity-and-environment Estimated Bills Xcel Energy attempts to road meters each month, If no reading is taken, Xcel Energy estimates your month's hill based on your past use. Govergimi;;ReaulatorlAmmY _ The Minnesota Public Utilities Commission regulates this utility and is available for mediation, MPUC' 1217th Place E., Suite 350, St. Paul, MN 55101-2X47-httpJlmn.govlpurl. Late Payment Cluaw _ Xcel Energy will assess a late payment charge on unpaid amounts two working days after the due date. The late payment charge is 1.5% monthly or 51, whichever is greater. No late payment charge will be assessed if the unpaid amount is fess than $10. Payment Responsibility Ifthe name on the front of your bill is not that of a person or business who has payment respons ibiiity, catlXcel Energy at 800.895.4999. Further information is available to customers upon request If It al Attvrdability Chante MercuryCost Recovery A surcharge to recover the costs of offering bill payment assistance and discount programs Minnesota law ahows Xcel Energy to recover costs related to reducing Mercury emissions attino for low-income customers. of Xcel Energy'siossil fuel power plants. Basic Service Charge Fixed monthly charge for certain fixed costs (metering, billing, maintenance. etc.) Conservation Improvement Programs Minnesota law requires Xcel Energy to invest in programs that help customers save energy. Deceu pl i ng_Ad'urstnreat A credit or surcharge to residential and non -demand business customers that separates the recovery of fixed costs from sales, adjusted annually based on the average use of each of these two customer classes. Demand Charge Charge to commercial and industrial customers for the fixed casts of the electric capacity required to meetthe peak electric loads on Xcel Energy's system. The charge, which is adjusted seasonally, appliesto the highest 15 minute kW demand during the billing period. Eneruni Charne Charge per kWh of electricity usage to recover the variable casts of producing energy. Fuel Cost Charge Charge per kWh to recover the costs otfuel needed to run Xcel Energy's generating plants, as well as the cost of purchasing energy from other suppliers. One kilowatt-hour (kWh} is a unit of electrica} usage. One kWh equals 1,000 watts of electricity used for one hour. This is spa ugh ale ctricity to light a 100 -watt light buil for 10 huurs. Renewable Developmerm Fund Minnasota law requires Xcal Energy to allocate money to support research and devolopment of renewable energy technologies, grid modernization, and other projects that increase system efficiency. Renewable Enemy Standard Minnesota law allows Xcel #energy to recover the costs of new renewable generation. Resource Adiusaaent This includes costs related to: Conservation Improvement Programs, Mercury Cost Recovery, Renewable Development Fund, Renewable Energy Standard, State Energy Policy, Transmission Cost Recovery. Minnesota law allowsXcel Energy to recover casts related to various energy policies approved by the Legislature, Transmission Cost Recover _ Minnesota law allows Xcel Energy to recover casts associated with new investments in the electric transmission system necessary to deliver electric energy to customers. Windsource10 Windsource is an optional program where you choose how much wind energy you would like to support, You can choose a fated number cf Windsource blocks (100 kWh each} or choose a 100% Windsource option. •,�4 y-� ,.,._t z' `-�! r rz ,t t� y"�, u .i i f '-y{'3r ,l e - 4 a '�` -rh F s+ -,.s :_ ,...r.F �'_::� PAN MA.s;w'st Basic Service Charge Monthly charge for certain fixed costs (metering, billing, maintenance, etc,) Chante partherm Charge to recover the cost of natural gas purchases from wholesale suppliers and delivered to Xcel Energy's distribution system via pipeline. This charge is adjusted each month. Conservation Improvement Programs Minnesota law requiresXcal Energy to invest in programs that help customers save energy, Distribution Charge _ Charge per therm that covers only the delivery costs of natural gasto a home or business through our distribution system. It does not include the charges for the natural gas itself. Gas Attordshility Program A surcharge to recover the costs of offering a low-income customer co -pay program designed to reduce natural gas service disconnections. Billed to all non -interruptible customers. Gas utility Infrastructure Costs Minnesota law allows Xcel Energy to recover MPUC-approved casts of assessments, modAcations, and replacement of natural gas facilities as required to comply with state and federal pipeline safety programs. Standard Payment Options (Nu fens apply) • My AccouuUeBIIUMobile App—Viewr'pay your bill electronically, view energy usage and access account information- • Auto Pay—Automatically pay your bill directly from your bank account • Pay By Phone — Make your payment by phone from your checking or savings account by calling 800.895.4999. ` Pay By Mail — Return the enclosed envelope and attached bill stub with your payment. Apply proper postage. • Bank View and Pay ---View and pay your bills onlinethrough a third -parry vendor. Heat Content Adjustment Corrects fur variances inthe heating capability of natural gas, and the adjustment varies monthly. The higherthe heat conter>X the iowerthe volume of natural gas needed to providethe same heating. New Arm Serviceff Aftrisign Surcharge Menthiy charge tar extending natural gas service to areas where the cost would otherwise have been prohibitive under Companys present rates and service extension policy. Pressure Correction Adjgs9 Nux Adjusts for variances in the amount of natural gas me asure d by different types of meters due to pressure differences in the natural gas delivered to a service. Resource Adiusaneat _ This includes costs related to Conservation Improvement Programs, Gas Utility infrastructure Costs and State Energy Policy Rider. State Enerav Poliev Minnesota law allows Xcel Energy to recover costs related to various energy policies approved by the Legislature. Atherm is a unit of heating value equaito 100,000 British Thermal Units (BTUs). Since naturat gas meters measure the volume of natural gas consumed in cubic feet, the Heat Co ntent Ad- justment is used to determine how much heat, in Therms, is contained in the volume consumed. Other Payment Options (Third -party fees will apply. Xcel Energy does not collect nor benefif from these fees.) • CredWDebit Card Payment— Pay with your credit or debit card electronically in My Accountle BilllMobile App, or by calling 833.660-1365. A processing fee is charged for each credit/debit card payment. • Pay Stations— Pay your bill in-person at a location near you A processing fee is charged for payments made at a pay station, Learn more atxcelenergy com/MyAccount W U 7 Xcel Energy° COOL YOUR REFRIGERATION COSTS Upgrading to energy-efficient refrigeration equipment and systems can save energy and lower operating costs. We have rebates available on qualifying display cases, doors, defrost controls for walk-in coolers and more. To get started, go to xcelenergy,com/Refrigeration to complete the digital application for a free, onsite refrigeration assessment. The assessment will help identify energy-saving opportunities at your facility, For more information call an energy specialist at 855-839-8862 or email us at EnergyEfficiency@xcelenergycom. xcelenergy corn 1 ©2022 Xcel Energy Inc I Xcel Energy is a registered trademark of Xcel Energy Inc 101220N11 Xce1 Energy RESPONSIBLE BY MATURES DAILY AVERAGES Last Year Temperature 21° F Electricity kWh 93.6 Electricity Cost $11.79 QUESTIONS ABOUT YOUR BILL? Seeourwabsita xcelenergy.com Email us at: Customerservice@xcelenergy.com Please Call: 1-800-481-4700 Hearing Impaired: 1-600-895-4949 Fax: 1-800-311-0050 Or write us at: XCEL ENERGY PO BOX 8 EAI CLAIRE WI 54702-0008 7 XcelEnergy NORTHERN STATES POWER COMPANY SERVICE ADDRESS ACCOUNT NUMBER I I CINDY A HEATON 113 W BROADWAY ST MONTICELLO, MN 55362-9352 51-4488817-3 02/03/2022 STATEMENT NUMBER I STATEMENT DATE $0,00 762550654 01/06/2022 72$48CO.14 SUMMARY OF CURRENT CHARGES (detailed charges begin on page 2) Electricity Service 12/01/21 - 01/04/22 3307 kWh $480.14 Current Charges $480.14 ACCOUNT BALANCE (Balance de su cuenta) Previous Balance As of 12/01 $448.04 Payment Received Auto Pay 01/03 -$448.04 CR Balance Forward $0,00 Current Charges $480.14 Amount Due (Cantidad a pagar) $480.14 INFORMATION ABOUT YOUR BILL Interim electric rates became effective Jan. 1, 2022. See the enclosed bill insertfor details. Thank you for your payment. Convenience at your service - Pay your bills electronically -fast and easy with Electronic Funds Transfer. Call us at 1-800-481-4700 or visit us at www,xcelenergy.com. RETURN BOTTOM PORTION W176 YOUR PAYMENT -PLEASE 00 NOT USE STAPUES,TAPE OR PAPER CLIPS ACCOUNT NUMBER I DUE DATE 51-4488817-3 J 02/03/2022 1 5480.14 Please see the back of this bill for more information regarding the late paymentcharge. Pay on or before the date due to avoid assessment of a late payment charge. Make your check payable to XCEL ENERGY AV 02 022479 06524B 97 A"'5DGT ��I�III'II'II'Ifll'I�+IIIIIIIII"IIIII'III'II'II'IIIIII!'IIIIIII' CINDY A HEATON PO BOX 727 MONTICELLO IIN 55362-0727 1 2 Mal 4 15 6 7 8 9 10 11 12 13 14 15 16 17 18 18 20 21 22 23 24 25 26 27 28 IIIIIIIIIIII"IIIII'Il'Illlllllll'Illl1'Il'Il"1111'1'1"1'1'1111 XCEL ENERGY P.O. BOX 9477 MPLS MN 55484-9477 31 51020322 44888/73 0000004801400000048014 Xcel Energy SAVE ON HIGH - EFFICIENCY FANS AND FAIN SYSTEMS Rebates are now available for fan systems that are Fan Energy Index or FEI rated. Rebates range from $120 to $9,100, depending on horsepower and if the system is integrated with a VFX, The savings can help off -set your energy improvement project costs. Contact your account manager or one of our energy advisors at Energ yEfficiency@xcelenerg y.com or call 855-839-8862, I SERVICE ADDRESS ACCOUNT NUMBER r CINDY B O A W 113 W BROADWAY 5T 5 1-448881 7-3 DZM3/20n MONTICELLO, MN 55362-9352 STATEMENT NUMBER STATEMENT DATE r 762550654 01/05/2022 $480.14 SERVICE ADDRESS: 113 W BROADWAY ST MONTICELLO, MN 55362-9352 NEXT READ DATE: 02/07/22 ELECTRICITY SERVICE DETAILS PREMISES NUMBER: 303140734 INVOICE NUMBER: 0942818124 METER 7633803Read Dates 17/01/21 - 01/34/22 I34 Oaysl DESCRIPTION CURRENT REAdING1 PREVIOUS READING— USAGE -- Total Energy - 15604 Aelual 12297 Actual I _ 3307 kWh Demand _ Actual - 10.78 kW 9iliableDemand- -- F- -- - -- --- - _ �,.. - - ---_ 11 kW �- ELECTRICITY CHARGES DESCRIPTION Basic Service Chg Eflergy Charge Fuel Cost Charge Sales True Up Demand Charge Winter Affordability Chrg Resource Adjustment Interim Rate Adj Subtotal City Fees Transit Improvement Tax State Tax Total RATE: General Service USAGE UNITS RATE 3307 kWh $0.034070 3307 kWh $0.026123 3307 kWh $0008780 11 kW $10.490000 TO SMALL POWER PRODUCERS AND CGGENERATQRS Federal and state laws require Xcel Energy and other utilities to buy all electric energy that qualified small power producers and cogenerators offer for sale. Qualified facilities may be interconnected with our system for this purpose. However, in Minnesota Xcel Energy is not required to make purchases from qualified facilities which are larger than 5 megawatts. Small power producers generate electricity using a renewable resource or waste product as fuel: garbage, peat, wood by-products, wind, water or sun. Cogenerators produce sequentially both electricity and useful heat energy. These facilities may use a non-renewable fuel, such as oil, natural gas or coal, An example is a paper mill that makes steam for electrical generation and, secondarily, for paper production. 0.50% 6,875% CHARGE $2564 $11267 $86.39 $29.04 $115.39 $3.60 $39.38 $4.04 $416.15 $31.00 $2.24 _$30.75 $480.14 The Minnesota Public Utilities Commission regulates the purchase price and service interconnection requirements between qualifying facilities and utilities. The Commission also resolves disputes that might arise. Customers who are interested in parallel generation options may obtain Xcel Energy's interconnection guidelines materials for information on interconnection requirements. Visit xcelenergy.com/HowToIntorconnect to find information about all interconnections. For specific on-site solar and other distributed generation interconnection application details, email SolarProgramMN@xcelenergy.com. For community solar garden information, email SRCMN@xcelenergy.com. To find out more about qualifying facilities and requirements for interconnection, please call 800.895.4999 {for residential customers) or 800-481-4700 (for all other customers). XcelEneryo f'c�L' J.7f G SERVICE ADDRE ACCOUNT NUMBER _DY A 113W BROADWAY ST MONTICELLO, MN 55362-9352 51-4488817-3 Q��, 022g STATEMENT NUMBER 762550654 STATEMENT DATE 01/06/2022 1 i $480.14 INFORMATION ABOUT YOUR BILL This month's Resource Adjustment includes an increase in the Transmission Cost Recovery Adjustment (TCR), which recovers the costs of transmission and distribution investments, including delivery of renewable energy sources to customers. The TCR portion of the Resource Adjustment is $0.003614 per kWh for Residential Customers; ` $0.003191 per kWh for Commercial (Non -Demand) customers; and $0.984 per kW for Demand billed customers. For an average non -demand customer, 68% of your bill refers to power plant costs, 15% to high voltage line costs, and 17% to the cost of local wires connected to your business. For an average demand -billed customer, 78% of your total bill refers to G power plant costs, 14% to high voltage lines, and B% to the cost of local wires connected to your business. VFDs CAN HELP DRIVE SAVINGS Variable frequency drives (VFDs) are used across industries to increase the efficiency of HVAC and motor -driven systems, including fans and water well pumps. If you're looking for ways to save money and reduce energy use, consider adding VFDs and earn rebates from $400 to $8,000 per unit, depending on horsepower. Learn more at xcelen erg y. corn/HVACR. r •► �"'` AVOID THE CLUTTER OF YOUR PAPER BILL. r +� Paperless billing can be conveniently accessed online at any time and is an environmentally -friendly way to manage and pay your bill. To enroll or find more billing and payment options, visit xcelenergy.com/Paperless. --- :.IMPORTk �. T -Y 3 :, s. f •,'ifwp , vi;, t4t,aF Erectric Emergencies: 800.8951999 24 hours, 7 days a week General hrautries' Pavarenas Natural Gas Emergencies: 8W8951999 24 hours, 7 days a week Xcel Energy Xcel Energy Residential Customer Service:" 80D.895.4999 7 a.m.-7 p.m., Mon. --Fri, PB Box 8 PO Box 9477 9 a.m-5 p.m., Sat. Business Solutions Center.` 800.481.4700 8 a.m.-5 p.m., Mon Fri. fTOrm 800.895.4949 24 hours, 7 days a week Call Before You Dig 811 24 hours, 7 days a week Eau Claire, W 154702-M Minneapolis, MN 554114-9477 xeelenergy.Com Please include stub for faster processing. 'Register any inquiry or cumplaiet at the afeve_ ME A fee some cities impose thatXcel Energy collects from customers and pays directly to the city. Electronic Check Ugaversian Whan you pay your hill by check, in most cases Xce€.Energy will use your check information to make a ane -time electronic debit from your checking account on the day we receive your check- There heckThere are no fees for this electrrinic conversion. In all other cases we will process your check Enrironniental lefe mation Fuels used to generate electricity, have different costs, reliability and air emissionsFormore information, contactXcel Energy at 801) 895.4999 or online at xcelenergy.com. You can also contact the Minnesota Department of Commerce at httpd/mn.gulleummgrcu/ or the Minnesota Pollution Control Agency at httpsllwww.pca.sWte mn.uslquick 3inkyelectric4-and-environment Estitaated Bllts Xcel Energy attempts to read meters each month. If no reading is taken, Xcal Energy estimates your month's hitt based on your past use. Affoirdability.ChaW A surcharge to recover the costs of offering bill payment assistance and discount programs for low-income customers. Basic Senrice.Chaggg Fixed monthly charge for certainfixed costs Imotoring, billing, maintenance, atc.l Conservation hoaargvemeat Proorsnm _ Minnesota law requires Xcel Energy to invest in programs that help costumers save energy- Decouol ing Adiustneeal A creditor surcharge to residential and non -demand business customers that separates the recovery of fixed costs from sales, adjusted annually based on the average use of each of these two customer classes. Demand Charge Charge to cammemial and industrial customers forthe fixed costs efthe electric capacity required to meetme peak electric loads an Xcel Energy's system. The charge, which is adjusted seasonally, applies to the highest 15 minute kW demand during the billing period. Energy Charge Charge per kWh of electricity usage to recoverthe variable costs of producing energy. Fuel Cost Charge Charge per kWh to recover the costs offuel neadedto run Xcel Energy's generating plants, as well as the cost of purchasing energy from other suppliers. kWh One kilowatt-hour IkWhj is a unir of electrical usage. One kWh equals 1,0U0 watts of electricity used for one hour. This is enough electricity to light a 100 -watt light butb for 10 hours. Gaveming Hmalatory Agency The Minnesota Public Utililities Commission regulates this utility and is available far mediation. MPUC-121 7th Place E., Suite 350, St. Paul, MN 55101-2147—hilpJlmn.gav/puc'. Late Payment Charge Xcel Energy will assess a rate payment charge on unpaid amounts two working days after the due date. The late payment charge is 1.5% monthly or 51, whichever is greater. No late payment charge will be assessed if the unpaid amount is less than 570, Pavrnent Reswasibility If the name on the front of your bill is not that of a person or business who has payment responsibility, call Xcel Energy at 800 895-4999. Furdter information is available to customers upon request NMem#a Cost Recovery _ Minnesota law allows Xcal Energy to recover casts related to reducing Mercury emissions at two of Xcel Energy's fossil fuel power plants. Renewable Development fund Minnesota law requires Xcel Energy to allocate money to support research and development of renewable energy tachnolegies, grid modernization, and other projects that increase system efficiency - Renewable FareMy_5_laadard _ Minnesota law allows Xcel Energy to recover the costs of new renewable generation. Resource_Adju§mrent _ This includes costs related to: Conservation Improvement Programs, Mercury Cast Recovery, Renewable Development Fund, Renewable Energy Standard, State Energy Policy, Transmission Cost fie covery. State Ewriff. Policy Minnesota law dUows Xcel Energy to recover costs related to various energy policies approved by the Legislature. Tsansaussion Cost liecoyep _ Minnesota law allows Xcel Energy to recover costs associated with new investments in the electric transmission system necessary to deliver electric energy to customers. WindsoarCee Windsource is an optional program where you choose how much wind energy you would like to support. You can choose a fixed number of Windsource blucks 000 kWh each€ ar choose a WO% WindseGrce option. �,�._ '�� , A16 31 :,1 —, M �r • _; �_� GA5 BATE ,kir L �nr t_ c Basic Service Charge Monthly charge for certain fixed costs (metering, billing, maintenance, etc.) Chat eTrerthemt Charge to recover the cost of natural gas purchases from wholesale suppliers and delivered to Xcel Energy's distribution system via pipeline, This charge is adjusted each month. Consenwtion Imarov meal Pragrsms Minnesota law requires Xcal Energy to invest in programs that help customers save energy. Distribution Charge Charge per therm that covers only the delivery casts of natural gas to a home or business through our distribution system. It does not include the charges for the natural gas itself Gas Alto* A surcharge to recover the costs of offering a low-income customer cu -Ray program designed to reduce natural gas service disconnections, Billed to all non-interruptibte customers. Gas Utility Infrasumtare Costs Minnesota law allows Xcel Energy to recover MPUC-approved costs of assessments, modifications, and replacement of natural gas facilities as required to comply with state and federal pipeline safety programs. Heat ContentAdinanent Corrects for variances inthe heating capability of natural gas, andthe adjustment varies monthly. The higher the heat contert, the lowerthe volume of natural gas needed to prnvide the same heating. NewArea 5arvicer&Menaaon Sawbatue Monthly charge far extending natural gas service to areas where the costwauld otherwise have been prohibitive under Companys present rates and service extension policy Pressure Cufreciion Admoneat _ Adjusts for variances in the amount of natraal gas measured by different types of meters due to pressure differences in the natural gas delivered to a service. Resource Adiustroent _ This includes costs related to Conservation Improvement Programs, Gas UbRty lnfrastruc#nre Costs and State Energy Policy Rider. State Energy Policv Minnesota law allows Xcel Energy to recover costs related to various energy policies approved by the Legislature. A therm is a unit of heating value equal to 100,000 British Therm a€ Units (BTUs). Since natural gas meters measure the valume of natural gas consumed in cubic feet, the Heat Content Ad- justment is used to determine how much heat, in therms, is contained in the volume consumed- �.� tr,' r� A ' 7 ;•,qtr ,� �,r., � .u� ,,,., � M ti- ^,-ya z�. ;F. rr.:.�r ,f .��:��Zi"�,'�,R.Ec*o-"�.,,�il"�` � iim'nf� ��I., *F:�.^.'f`i`u� Standard Payment options (No fees apply) • My AccouutleBill/Mobile App—View/pay your bill electronically, view energy usage and access account information. • Auto Pay—Automatically pay your bill directly from your bank account. • Pay By Phone—Make your payment by phone from your checking or savings account by calling 800.895.4999. • Pay By Mail —Return the enclosed envelope and attached hill stub with your payment. Apply proper postage. • Bank View and Pay—View and pay your bills online through a third -party vendor Other payment Options (Third -party Nes will apply-Xcef Energy does not collect nor benefit from these fees.) - Cr d[Wehit Card Paymem— Pay with your credit or debit card electronically in My AccnunVeBi1VMWIe App, or by calling 833.660.1365. A processing fee is charged for eachcredit/debit card payment. - Pay Stations— Pay your hill in -parson at a location near you. A processing fee is charged for payments made ata pay station. Learn more atxceienergy,corrl/MyAccount 7 Xcel Energy COOL YOUR REFRIGERATION COSTS Upgrading to energy-efficient refrigeration equipment and systems can save energy and lower operating costs. We have rebates available on qualifying display cases, doors, defrost controls for walls -in coolers and more. To get started, go to xcelenergy.com/Refrigeration to complete the digital application for a free, onsite refrigeration assessment. The assessment will help identify energy-saving opportunities at your facility. For more information call an energy specialist at 855-839-8882 or email us at EnergyEfficiency@xcelenergy.com. xcelenergy cam 10 2022 Xcel Energy Inc j Xcel Energy is a registered trademark of XcW Energy Inc. 101220N11 Accounts Payable Transactions by Account User: Debbie.Davidson Printed: 05/18/2022 - 3:55PM Batch: 00203.05.2022 Account Number Vendor Description GL Date Check No CITYonticello Amount PO No 213-00000-220110 ECM PUBLISHERS INC TIF 1-45 - PH for TIF 1-45 Ad #1228 05/24/2022 0 250.75 Vendor Subtotal for Dept:00000 250.75 213-00000-220110 KENNEDY AND GRAVEN CHAR] TIF 1-45 - Block 52 Redevelopment - 05/24/2022 125532 1,174.00 213-00000-220110 KENNEDY AND GRAVEN CHAR] TIF 1-45 - 113 W Broadway - Feb 202 05/24/2022 125532 540.00 Vendor Subtotal for Dept:00000 1,714.00 213-00000-220110 NORTHLAND SECURITIES INC TIF 1-44 - Washburn - April 2022 05/24/2022 125538 4,300.00 213-00000-220110 NORTHLAND SECURITIES INC 21TOO 1 -TIF 1-42 -Headwaters Apart 05/24/2022 125538 215.00 213-00000-220110 NORTHLAND SECURITIES INC 21TOO 1 -TIF 1-43 - Headwaters Villas 05/24/2022 125538 215.00 213-00000-220110 NORTHLAND SECURITIES INC TIF 1-45 - Block 52 - April 2022 05/24/2022 125538 645.00 Vendor Subtotal for Dept:00000 5,375.00 213-46301-430400 KENNEDY AND GRAVEN CHAR] General EDA- Feb 2022 05/24/2022 125532 484.00 213-46301-430400 KENNEDYAND GRAVEN CHAR] 113 W Broadway - Feb 2022 (1/2) 05/24/2022 125532 44.00 Vendor Subtotal for Dept:46301 528.00 213-46301-431993 BOLTON AND MENK INC 202211 - Strategic Transition Plan/CE' 05/24/2022 0 4,162.00 213-46301-431993 BOLTON AND MENK INC 202211 - Industrial Land Use/CET Gra 05/24/2022 0 10,184.50 Vendor Subtotal for Dept:46301 14,346.50 AP -Transactions by Account (05/18/2022 - 3:55 PM) Page 1 Account Number Vendor Description GL Date Check No Amount PO No 213-46301-433100 JAMES THARES Milage Reimbursement - (186 Miles) 05/24/2022 0 108.81 Vendor Subtotal for Dept:46301 108.81 213-46301-434990 AE2 - ADVANCED ELEMENTS, R EDA Integrated Marketing & Commw 05/24/2022 125511 18,916.00 Vendor Subtotal for Dept:46301 18,916.00 Subtotal for Fund: 213 41,239.06 Report Total: 41,239.06 AP -Transactions by Account (05/18/2022 - 3:55 PM) Page 2 ECM Publishers, Inc. 4095 Coen Rapids Blvd. Coon Rapids, MN 55433 Address Service Requested CITY OF MONTICELLO ATTN: ACCOUNTS PAYABLE 505 WALNUT ST STE MONTICELLO, MN 55332 PLEASE CHECK BOX IF ADDRESS CHANGED & INDICATE NEW ADDRESS Page # 1 Invoice Date 5/12/2022 Invoice Number Ad Number 891976 1228471 Terms Net 30 Check Number Amount Paid Account# 429204 $250.75 ACCOUNT NUMBER START DATE STOP DATE EDITION DATE ACCOUNT REPRESENTATIVE 429204 05/12/22 05/12/22 5/1212022 Monticello Legals 763-691-6001 Please return the upper portion with your payment. Or call 763-712-2494 with a credit card payment. PUBLICATION DATE AD# CLASS DESCRIPTIONITAG LINE TYPE SIZE QTYI AMOUNT TIMES Monticello Times 05112/2022 122$471 154 May 23 PH District 1-45 LD 2.0 X 6.20 1 250.75 O D Net Amount 2507 5 Shipping 0.00 Tax 0.00 891976 Amount Due 250.75 ~ ECMAPG PIXE LI N K M] VIS $30 charge assessed for returned checks. Report errors within 5 days to ensure consideration. — Publishers, Inc.. CREA.TIV GROUP "`y`""` »w. ry• vEe Unpaid balances over 30 days past due will incur a 1.5% finance charge month (Minimum month). per .50 per AFFIDAVIT OF PUBLICATION STATE OF MINNESOTA ) ss COUNTY OF WRIGHT Karen Nelson being duly sworn on an oath, states or affirms that he/she is the Publisher's Designated Agent of the newspaper(s) known as: Monticello Times with the known office of issue being located in the county of: WRIGHT with additional circulation in the counties of: SHERBURNE and has full knowledge of the facts stated below: (A) The newspaper has complied with all of the requirements constituting qualifica- tion as a qualified newspaper as provided by Minn. Stat. §331A.02. (B) This Public Notice was printed and pub- lished in said newspaper(s) once each week, for I successive week(s); the first insertion being on 05/1212022 and the last insertion being on 0511212022. MORTGAGE FORECLOSURE NOTICES Pursuant to Minnesota Stat. §580.033 relating to the publication of mortgage foreclosure notices: The newspaper complies with the conditions described in §580.033, subd. 1, clause (1) or (2). If the newspapers known office of issue is located in a county adjoining the county where the mortgaged premises or some part of the mortgaged premises described in the notice are located, a substantial portion of the newspaper's circulation is in the latter county. By: — �,/ I. Mss Designated Agent Subscribed and sworn to or affirmed before me on 05/12/2022 by Karen Nelson. Notary Public Rate Information: (1) Lowest classified rate paid by commercial users for comparable space: $18.50 per column inch Ad ID 1228471 DIANE H ERICKSON =y` NOTARY PUBLIC MINNESOTA My Commission Expires Jan, 31. 2024 Rate Information: (1) Lowest classified rate paid by commercial users for comparable space: $18.50 per column inch Ad ID 1228471 From: Jim Thares To: Julie Cheney Subject: RE: ECM $250.75 Date: Monday, May 16, 2022 1:26:19 PM Attachments: imaae001.a_na Julie, yes, this is okay to pay. Please code to: TIF District #1-45 Escrow Account. From: Julie Cheney <Julie.Cheney@ci.monticello.mn.us> Sent: Monday, May 16, 2022 11:49 AM To: Jim Thares <Jim.Thares@ci.monticello.mn.us> Subject: ECM $250.75 Jim Please see the attached invoice from ECM for Public Hearing TIF 1-45. Okay to pay $250.75? Please provide coding. Thanks Julie Cheney Finance Assistant City of Monticello 763-271-3205 Julie.Cheney@ci.monticello.mn.us AP@ci.monticel lo.mn.us CITY OF Monticello Email correspondence to and from the City of Monticello government offices is subject to the Minnesota Government Data Practices Act and may be disclosed to third parties. Page: 2 Kennedy & Graven, Chartered 150 South Fifth Street, Suite 700 Minneapolis, MN 55402 City of Monticello February 28, 2022 MN190-00159 Block 52 Redevelopment Through February 28, 2022 For All Legal Services As Follows: 2/2/2022 GAF Conference call with J Thares and T Omdal regarding project status and timing; review emails regarding same 2/3/2022 LJK Review TIF Calendar Hours Amount 0.30 66.00 0.30 60.00 2/8/2022 LJK Draft resolutions required to establish TIF district with 1.30 available information 2/10/2022 GAF Legal research regarding removal of parcels from prior TIF 1.30 district; draft email to T Omdal regarding same; review memo from T Omdal 2/14/2022 GAF Review EDA resolution calling a public hearing; discuss 2.10 removal of parcels from another TIF district with T Omdal; legal research regarding same; review prior TIF District blight study 2/15/2022 LJK Send public hearing resolution to Jim Thares. 0.20 Total Services 260.00 286.00 462.00 40.00 $ 1,174.00 T otal Services and Disbursements: $ 1,174.00 From: Jim Thares To: Julie Cheney Subject: RE: Kennedy & Graven (3) Date: Wednesday, May 18, 2022 11:09:51 AM Attachments: imaae001.pno Julie, these are all okay to pay. Please code as shown below. From: Julie Cheney <Julie.Cheney@ci.monticello.mn.us> Sent: Thursday, May 12, 2022 1:35 PM To: Jim Thares <Jim.Thares@ci.monticello.mn.us> Subject: Kennedy & Graven (3) Jim Please see the attached invoices from Kennedy & Graven for February services: Inv# MN190-00159 — Block 52 Development - $1,174.00 Code to TIF 1-45 Escrow Account Inv#MN325-00045 — 113 W Broadway - $584.00 - Code $44.00 to 213-46301-430400 and Code $540.00 to TIF District 1-46 Escrow Account Inv# MN190-00101 —General EDA - $484.00 Code to 213-46301-430400 Okay to pay? Please provide coding. Thank you, Julie Cheney Finance Assistant City of Monticello 763-271-3205 Julie.Cheney@ci.monticello.mn.us AP@ci.monticello.mn.us CITY OF Monticello Email correspondence to and from the City of Monticello government offices is subject to the Minnesota Government Data Practices Act and may be disclosed to third parties. Page: 1 Kennedy & Graven, Chartered 150 South Fifth Street, Suite 700 Minneapolis, MN 55402 Monticello EDA February 28, 2022 MN325-00045 113 West Broadway Through February 28, 2022 For All Legal Services As Follows: Hours Amount 2/2/2022 GAF Discuss relocation benefits with J Thares; draft email to J 0.40 Weir regarding same 2/3/2022 JPW Confer with G Fiorini regarding next steps and wider 0.10 background 2/7/2022 JPW Emails with G Fiorini regarding introductions with J Thares 1.30 and EDA; reviewing file documents related to the underlying acquisition and outlining analysis and questions for J Thares 2/9/2022 JPW Review documents from J Thares and call regarding 1.50 potential options, follow-up email to G Fiorini and J Thares 2/16/2022 JPW Emails with J Thares regarding closed meeting basis 0.20 � Eit:61i - Total Services: 88.00 16.00 208.00 240.00 32.00 $ 584.00 Total Services and Disbursements: $ 584.00 From: Jim Thares To: Julie Cheney Subject: RE: Kennedy & Graven (3) Date: Wednesday, May 18, 2022 11:09:51 AM Attachments: imaae001.pno Julie, these are all okay to pay. Please code as shown below. From: Julie Cheney <Julie.Cheney@ci.monticello.mn.us> Sent: Thursday, May 12, 2022 1:35 PM To: Jim Thares <Jim.Thares@ci.monticello.mn.us> Subject: Kennedy & Graven (3) Jim Please see the attached invoices from Kennedy & Graven for February services: Inv# MN190-00159 — Block 52 Development - $1,174.00 Code to TIF 1-45 Escrow Account Inv#MN325-00045 — 113 W Broadway - $584.00 - Code $44.00 to 213-46301-430400 and Code $540.00 to TIF District 1-46 Escrow Account Inv# MN190-00101 —General EDA - $484.00 Code to 213-46301-430400 Okay to pay? Please provide coding. Thank you, Julie Cheney Finance Assistant City of Monticello 763-271-3205 Julie.Cheney@ci.monticello.mn.us AP@ci.monticello.mn.us CITY OF Monticello Email correspondence to and from the City of Monticello government offices is subject to the Minnesota Government Data Practices Act and may be disclosed to third parties. Northland Securities, Inc. 150 South Fifth Street Suite 3300 Minneapolis, MN 55402 Voice: 612-851-5900 Fax: 612-851-5951 Bill To: City of Monticello Jim Thares, Economic Development Manager 505 Walnut Street, Suite 1 Monticello, MN 55362 NORTHLAND SECURITIES Invoice Invoice Number: 7043 Invoice Date: 5/4/22 Page: 1 Customer PO Payment Terms Sales Rep ID Due Date TIF District 1-44 Net 30 Days 6/3/22 Description Amount For services related to Tax Increment District 1-44 (Washburn). Please see enclosed detail. 4,300.00 Subtotal 4,300.00 Sales Tax Total Invoice Amount 4,300.00 Payment Received TOTAL 4,300.00 Main 612-851-5900 1 Toll -Free 800-851-2920 1 Fax 612-851-5987 150 South Fifth Street, Suite 3300 1 Minneapolis, MN 55402 NorthlandSecurities. com Member FINRA and SIPC, Registered with SEC and MSRB NORTHLAND PUBLIC FINANCE INVOICE SUPPLEMENT Client: City of Monticello Project: Tax Increment District 1-44 (Washburn) Contact: Jim Thares Economic Development Manager City of Monticello 505 Walnut Street Suite 1 Monticello, MN 55362 Billing Period: April 2022 Services Performed • Assist with statutory requirements for notices • Financial evaluation and memorandum of terms for assistance • Distribute draft planning documents with letter of explanation and other supporting information to county and school district • Finalize documents for public hearing and meetings • Attend public hearing and meetings to present on plan and assistance terms Staff Time Expenses Total This Period Position Senior Professional Total Staff Mileage Printing Other Total Expenses Project Summary Total Budget Billed This Period Billed Previous Budget Remaining Northland Securities, Inc. Hours Rate Billable 20.00 $215 $4,300.00 20.00 $4,300.00 $0.00 $0.00 $0.00 $0.00 $4,300.00 $ 9,200.00 ($4,300.00) ($4,085.00) $ 815.00 Page 2 of 2 From: Jim Thares To: Julie Cheney Subject: RE: Northland Securities (4) Date: Wednesday, May 18, 2022 11:12:59 AM Attachments: imacie001.pno Julie, these are all okay to pay. Please code as follows: From: Julie Cheney <Julie.Cheney@ci.monticello.mn.us> Sent: Thursday, May 12, 2022 2:37 PM To: Jim Thares <Jim.Thares@ci.monticello.mn.us> Subject: Northland Securities (4) Jim Please see the attached invoices from Northland Securities: Inv# 7043 —TIF 1-44 - $4,300.00 Code to TIF District 1-44 Escrow Account Inv# 7044 — TIF 1-42 - $215.00 Code to TIF District 1-42 Escrow Account Inv# 7045 — TI F 1-43 - $215.00 Code to TIF District 1-43 Escrow Account Inv# 7046 — TIF 1-45 - $645.00 Code to TIF District 1-45 Escrow Account Okay to pay? Please provide coding. Thank you, Julie Cheney Finance Assistant City of Monticello 763-271-3205 Julie.Cheney@ci.monticello.mn.us AP@ci.monticello.mn.us CITY OF Monticello Email correspondence to and from the City of Monticello government offices is subject to the Minnesota Government Data Practices Act and may be disclosed to third parties. Northland Securities, Inc. 150 South Fifth Street Suite 3300 Minneapolis, MN 55402 Voice: 612-851-5900 Fax: 612-851-5951 Bill To: City of Monticello Jim Thares, Economic Development Manager 505 Walnut Street, Suite 1 Monticello, MN 55362 NORTHLAND SECURITIES Invoice Invoice Number: 7044 Invoice Date: 5/4/22 Page: 1 Customer PO Payment Terms Sales Rep ID Due Date TIF District 1-42 Net 30 Days 6/3/22 Descrivtion Amount For services related to Tax Increment District 1-42 (Headwaters Apartment Project). Please see enclosed detail. 215.00 Subtotal 215.00 Sales Tax Total Invoice Amount 215.00 Payment Received TOTAL 215.00 Main 612-851-5900 1 Toll -Free 800-851-2920 1 Fax 612-851-5987 150 South Fifth Street, Suite 3300 1 Minneapolis, MN 55402 Northlan dSecurities. com Member FINRA and SIPC Registered with SEC and MSR& NORTHLAND PUBLIC FINANCE INVOICE SUPPLEMENT Client: City of Monticello Project: Tax Increment District 1-42 (Headwaters Apartment Project) Contact: Jim Thares Economic Development Manager City of Monticello 505 Walnut Street Suite 1 Monticello, MN 55362 Billing Period: April 2022 Services Performed • Revisit analysis for terms for assistance • Review and comment on development agreement draft Staff Time Position Senior Professional Total Staff Expenses Mileage Printing Other (adjust for not to exceed) Total Expenses Total This Period Hours Rate Billable 1.00 $215 $215.00 1.00 $215.00 $0.00 $0.00 $0.00 $0.00 $215.00 Project Summary Total Budget* $ 5,267.50 Billed This Period ($215.00) Billed Previous ($5,590.00) Budget Remaining* $ (537.50) *Agreement includes budget of $10,535. City determined to establish two versus one TIF district for the housing project. Budget shown here is split between TIF 42 and TIF 43, Northland will not exceed budget unless City agrees to modified scope to reflect additional work related to two TIF districts versus one. Northland Securities, Inc. Page 2 of 2 From: Jim Thares To: Julie Cheney Subject: RE: Northland Securities (4) Date: Wednesday, May 18, 2022 11:12:59 AM Attachments: imacie001.pno Julie, these are all okay to pay. Please code as follows: From: Julie Cheney <Julie.Cheney@ci.monticello.mn.us> Sent: Thursday, May 12, 2022 2:37 PM To: Jim Thares <Jim.Thares@ci.monticello.mn.us> Subject: Northland Securities (4) Jim Please see the attached invoices from Northland Securities: Inv# 7043 —TIF 1-44 - $4,300.00 Code to TIF District 1-44 Escrow Account Inv# 7044 — TIF 1-42 - $215.00 Code to TIF District 1-42 Escrow Account Inv# 7045 — TI F 1-43 - $215.00 Code to TIF District 1-43 Escrow Account Inv# 7046 — TIF 1-45 - $645.00 Code to TIF District 1-45 Escrow Account Okay to pay? Please provide coding. Thank you, Julie Cheney Finance Assistant City of Monticello 763-271-3205 Julie.Cheney@ci.monticello.mn.us AP@ci.monticello.mn.us CITY OF Monticello Email correspondence to and from the City of Monticello government offices is subject to the Minnesota Government Data Practices Act and may be disclosed to third parties. Northland Securities, Inc. 150 South Fifth Street Suite 3300 Minneapolis, MN 55402 Voice: 612-851-5900 Fax: 612-851-5951 Bill To: City of Monticello Jim Thares, Economic Development Manager 505 Walnut Street, Suite 1 Monticello, MN 55362 NORTHLAND SECURITIES Invoice Invoice Number: 7045 Invoice Date: 5/4/22 Page: 1 Customer PO Payment Terms Sales Rep ID Due Date TIF District 1-43 Net 30 Days 6/3/22 Description Amount For services related to Tax Increment District 1-43 (Headwaters Villas Project). 215.00 see enclosed detail. ONN ii N—F�—RE Subtotal 215.00 Sales Tax Total Invoice Amount 215.00 Payment Received TOTAL 215.00 Main 612-851-5900 1 Toll -Free 800-851-2920 1 Fax 612-851-5987 150 South Fifth Street, Suite 3300 1 Minneapolis, MN 55402 NorthlandSecurities.com Member FINRA and SIPC, Registered with SEC and MSRB NORTHLAND ?LBLIC FINANCE INVOICE SUPPLEMENT Client: City of Monticello Project: Tax Increment District 1-43 (Headwaters Villas Project) Contact: Jim Thares Economic Development Manager City of Monticello 505 Walnut Street Suite 1 Monticello, MN 55362 Billing Period: April 2022 Services Performed • Revisit analysis for terms for assistance • Review and comment on development agreement draft Staff Time Position Senior Professional Total Staff Expenses Mileage Printing Other (adjust for not to exceed) Total Expenses Total This Period Hours Rate Billable 1.00 $215 $215.00 1.00 $215.00 $0.00 $0.00 $0.00 $0.00 $215.00 Project Summary Total Budget* $ 5,267.50 Billed This Period ($215.00) Billed Previous ($5,590.00) Budget Remaining* $ (537.50) *Agreement includes budget of $10,535. City determined to establish two versus one TIF district for the housing project. Budget shown here is split between TIF 42 and TIF 43. Northland will not exceed budget unless City agrees to modified scope to reflect additional work related to two TIF districts versus one. Northland Securities, Inc. Page 2 of 2 From: Jim Thares To: Julie Cheney Subject: RE: Northland Securities (4) Date: Wednesday, May 18, 2022 11:12:59 AM Attachments: imacie001.pno Julie, these are all okay to pay. Please code as follows: From: Julie Cheney <Julie.Cheney@ci.monticello.mn.us> Sent: Thursday, May 12, 2022 2:37 PM To: Jim Thares <Jim.Thares@ci.monticello.mn.us> Subject: Northland Securities (4) Jim Please see the attached invoices from Northland Securities: Inv# 7043 —TIF 1-44 - $4,300.00 Code to TIF District 1-44 Escrow Account Inv# 7044 — TIF 1-42 - $215.00 Code to TIF District 1-42 Escrow Account Inv# 7045 — TI F 1-43 - $215.00 Code to TIF District 1-43 Escrow Account Inv# 7046 — TIF 1-45 - $645.00 Code to TIF District 1-45 Escrow Account Okay to pay? Please provide coding. Thank you, Julie Cheney Finance Assistant City of Monticello 763-271-3205 Julie.Cheney@ci.monticello.mn.us AP@ci.monticello.mn.us CITY OF Monticello Email correspondence to and from the City of Monticello government offices is subject to the Minnesota Government Data Practices Act and may be disclosed to third parties. Page: 1 Kennedy & Graven, Chartered 150 South Fifth Street, Suite 700 Minneapolis, MN 55402 City of Monticello February 28, 2022 MN190-00101 General EDA Matters Through February 28, 2022 For All Legal Services As Follows Hours Amount 2/1/2022 MNI Discussion with G Fiorini regarding relocation issue for 0.20 113 W. Broadway 44.00 2/18/2022 GAF Review email regarding potential TIF for Wiha tool; legal 0.70 research regarding same; discuss same with J Thares; 154.00 draft email regarding same 2/22/2022 GAF Conference call with city staff and T Omdal 1.30 286.00 Total Services: $ 484.00 Total Services and Disbursements: $ 484.00 From: Jim Thares To: Julie Cheney Subject: RE: Kennedy & Graven (3) Date: Wednesday, May 18, 2022 11:09:51 AM Attachments: imaae001.pno Julie, these are all okay to pay. Please code as shown below. From: Julie Cheney <Julie.Cheney@ci.monticello.mn.us> Sent: Thursday, May 12, 2022 1:35 PM To: Jim Thares <Jim.Thares@ci.monticello.mn.us> Subject: Kennedy & Graven (3) Jim Please see the attached invoices from Kennedy & Graven for February services: Inv# MN190-00159 — Block 52 Development - $1,174.00 Code to TIF 1-45 Escrow Account Inv#MN325-00045 — 113 W Broadway - $584.00 - Code $44.00 to 213-46301-430400 and Code $540.00 to TIF District 1-46 Escrow Account Inv# MN190-00101 —General EDA - $484.00 Code to 213-46301-430400 Okay to pay? Please provide coding. Thank you, Julie Cheney Finance Assistant City of Monticello 763-271-3205 Julie.Cheney@ci.monticello.mn.us AP@ci.monticello.mn.us CITY OF Monticello Email correspondence to and from the City of Monticello government offices is subject to the Minnesota Government Data Practices Act and may be disclosed to third parties. Northland Securities, Inc. 150 South Fifth Street Suite 3300 Minneapolis, MN 55402 Voice: 612-851-5900 Fax: 612-851-5951 Bill To: City of Monticello Jim Thares, Economic Development Manager 505 Walnut Street, Suite 1 Monticello, MN 55362 NORTHLAND SECURITIES Invoice Invoice Number: 7046 Invoice Date: 5/4/22 Page: 1 Customer PO Payment Terms Sales RepID Due Date TIF District 1-45 Net 30 Days 6/3/22 Description Amount For services related to Tax Increment District 1-45 (Block 52). Please see enclosed detail. 645.00 Subtotal 645.00 Sales Tax Total Invoice Amount 645.00 Payment Received TOTAL 645.00 Main 612-851-5900 1 Toll -Free 800-851-2920 1 Fax 612-851-5987 150 South Fifth Street, Suite 3300 1 Minneapolis, MN 55402 NorthlandSecurities. com Member FINRA and SIPC, Registered zaith SEC and MSRB NORTHLAND PUBLIC FINANCE INVOICE SUPPLEMENT Client: City of Monticello Project: Tax Increment District 1-45 (Block 52) Contact: Jim Thares Economic Development Manager City of Monticello 505 Walnut Street Suite 1 Monticello, MN 55362 Billing Period: April 2022 Services Performed • Distribute draft planning documents with letter of explanation and other supporting information to county and school district • Conference calls with city staff to review terms for assistance Staff Time Expenses Total This Period Position Senior Professional Total Staff Mileage Printing Other Total Expenses Project Summary Total Budget Billed This Period Billed Previous Budget Remaining Northland Securities, Inc. Hours Rate Billable 3.00 $215 $645.00 3.00 $645.00 $0.00 $0.00 $0.00 $0.00 $ 10,535.00 ($645.00) ($4,945.00) $ 4,945.00 Page 2 of 2 From: Jim Thares To: Julie Cheney Subject: RE: Northland Securities (4) Date: Wednesday, May 18, 2022 11:12:59 AM Attachments: imacie001.pno Julie, these are all okay to pay. Please code as follows: From: Julie Cheney <Julie.Cheney@ci.monticello.mn.us> Sent: Thursday, May 12, 2022 2:37 PM To: Jim Thares <Jim.Thares@ci.monticello.mn.us> Subject: Northland Securities (4) Jim Please see the attached invoices from Northland Securities: Inv# 7043 —TIF 1-44 - $4,300.00 Code to TIF District 1-44 Escrow Account Inv# 7044 — TIF 1-42 - $215.00 Code to TIF District 1-42 Escrow Account Inv# 7045 — TI F 1-43 - $215.00 Code to TIF District 1-43 Escrow Account Inv# 7046 — TIF 1-45 - $645.00 Code to TIF District 1-45 Escrow Account Okay to pay? Please provide coding. Thank you, Julie Cheney Finance Assistant City of Monticello 763-271-3205 Julie.Cheney@ci.monticello.mn.us AP@ci.monticello.mn.us CITY OF Monticello Email correspondence to and from the City of Monticello government offices is subject to the Minnesota Government Data Practices Act and may be disclosed to third parties. BOLTON & MENK Real People. Real Solutions. INVOICE Please Remit To: Bolton & Menk, Inc. 1960 Premier Drive I Mankato, MN 56001-5900 507-625-4171 1507-625-4177 (fax) Payment by Credit Card Available Online at www.Bolton-Menk.com To Ensure Proper Credit, Provide Invoice Numbers with Payment City of Monticelloa v Attn: AP �e_ April 29, 2022 505 Walnut Street D Project No: Suite 1 n t.! ^,,» ;_ Invoice No: Monticello, MN 56362 1" rlient Account: Monticello/Strategic Transition Plan Project Management and Coordination (001) Professional Services Principal Administrative Senior Planner Totals Total Labor Plan Review and Synthesis (002) Professional Services Principal Planner Totals Total Labor OT6.127132 0289212 MTCE Hours Amount 1.00 160.00 1.00 92.00 .50 70.00 2.50 322.00 322.00 Total this Task $322.00 Hours Amount 11.50 1,840.00 17.50 2,000.00 29.00 3,840.00 3,840.00 Total this Task $3,840.00 Total this Invoice $4,162.00 Notice: A finance charge of 1.5% per month (annual percentage of 18%) is charged on balances 30 days or over. From: Angela Schumann To: Julie Chenev Cc: Matthew Leonard Subject: FW: Bolton & Menk (2) Date: Wednesday, May 18, 2022 12:44:32 PM Attachments: Bolton & Menk 042922 $4.162.00.odf imaae001.pna Bolton & Menk 042922 $10.184.50.odf OK to pay. These are CET grant expenses. The $4,162 is to the Strategic Transition Plan component. The second invoice is for the Industrial Feasibility item — Environmental component. Angela Schumann Community Development Director City of Monticello www.ci.monticello.mn.us 763-271-3224 Email correspondence to and from the City of Monticello government office is subject to the Minnesota Government Data Practices act and may be disclosed to third parties. From: Matthew Leonard <matt.leonard@ci.monticello. mn.us> Sent: Wednesday, May 18, 2022 12:35 PM To: Angela Schumann <Angela.Schumann@ci.monticello.mn.us> Cc: Julie Cheney <Julie.Cheney@ci.monticello.mn.us> Subject: FW: Bolton & Menk (2) Hello Angela — I believe these are yours and sorry I didn't forward them sooner... From: Julie Cheney <Julie.CheneyCcDci.monticello.mn.us> Sent: Thursday, May 12, 2022 2:38 PM To: Matthew Leonard <matt.leonard(@ci.monticello. mn.us> Subject: Bolton & Menk (2) Matt Please see the attached invoices from Bolton & Menk: Inv# 0289211— Monti Industrial Land Use - $10,184.50 Inv# 0289212—Strategic Transition Plan - $4,162.00 Okay to pay? Please provide coding. Thank you, Julie Cheney Finance Assistant City of Monticello 763-271-3205 Julie.Cheney@ci.monticello.mn.us AP@ci,mont�icello,mn.us CITY OF Monticello Email correspondence to and from the City of Monticello government offices is subject to the Minnesota Government Data Practices Act and may be disclosed to third parties. BOLTON & MENK Real People. Real Solutions. City of Monticello Attn: AP 505 Walnut Street Suite 1 Monticello, MN 56362 Monticello/Industrial Land Use Project Management and Coordination (001) Professional Services INVOICE Please Remit To: Bolton & Menk, Inc. 1960 Premier Drive I Mankato, MN 56001-5900 507-625-4171 1507-625-4177 (fax) Payment by Credit Card Available Online at www.Bolton-Menk.com To Ensure Proper Credit, Provide Invoice Numbers with Payment April 29, 2022 Project No: Invoice No: Client Account: OT6.127067 0289211 MTCE Principal Hours Amount Administrative 10.50 1,740.00 Senior Planner 1.00 92.00 Senior Landscape Architect '50 70.00 Totals 13.50 2,362.50 Total Labor 25.50 4,264.50 4,264.50 Total this Invoice $10,184.50 Notice: A finance charge of 1.5% per month (annual percentage of 10%) is charged on balances 30 days or over. Total this Task $4,264.50 Land Use and Trend Analysis (002) Professional Services Principal Hours Amount Specialist 9.50 1,605.00 Planner 6.00 780.00 Senior Landscape Architect 16.50 2,310.00 Totals 7.00 1,225.00 Total Labor 39.00 5,920.00 5,920.00 Total this Task $5,920,00 Total this Invoice $10,184.50 Notice: A finance charge of 1.5% per month (annual percentage of 10%) is charged on balances 30 days or over. From: Angela Schumann To: Julie Chenev Cc: Matthew Leonard Subject: FW: Bolton & Menk (2) Date: Wednesday, May 18, 2022 12:44:32 PM Attachments: Bolton & Menk 042922 $4.162.00.odf imaae001.pna Bolton & Menk 042922 $10.184.50.odf OK to pay. These are CET grant expenses. The $4,162 is to the Strategic Transition Plan component. The second invoice is for the Industrial Feasibility item — Environmental component. Angela Schumann Community Development Director City of Monticello www.ci.monticello.mn.us 763-271-3224 Email correspondence to and from the City of Monticello government office is subject to the Minnesota Government Data Practices act and may be disclosed to third parties. From: Matthew Leonard <matt.leonard@ci.monticello. mn.us> Sent: Wednesday, May 18, 2022 12:35 PM To: Angela Schumann <Angela.Schumann@ci.monticello.mn.us> Cc: Julie Cheney <Julie.Cheney@ci.monticello.mn.us> Subject: FW: Bolton & Menk (2) Hello Angela — I believe these are yours and sorry I didn't forward them sooner... From: Julie Cheney <Julie.CheneyCcDci.monticello.mn.us> Sent: Thursday, May 12, 2022 2:38 PM To: Matthew Leonard <matt.leonard(@ci.monticello. mn.us> Subject: Bolton & Menk (2) Matt Please see the attached invoices from Bolton & Menk: Inv# 0289211— Monti Industrial Land Use - $10,184.50 Inv# 0289212—Strategic Transition Plan - $4,162.00 Okay to pay? Please provide coding. Thank you, Julie Cheney Finance Assistant City of Monticello 763-271-3205 Julie.Cheney@ci.monticello.mn.us AP@ci,mont�icello,mn.us CITY OF Monticello Email correspondence to and from the City of Monticello government offices is subject to the Minnesota Government Data Practices Act and may be disclosed to third parties. 2022 EMPLOYEE REIMBURSEMENT VOUCHER CITY OF MONTICELLO (Effective 1/1/22) NAME�j AA j i a re� DATE OF REQUEST -s 105/2-0 y Z Address to Mail (if necessary) PURPOSE/E LOCATION for multiple requests) 'or multiple requests) EXPENSES: (Please reference Travel and Reimbursement Policy) Mileage (5.585 per mile) $ O 06 S (Total miles Reimbursable defined on back. A city vehicle was not available. Traveling direction warranted personal vehicle use. TT �, Traveling conditions warranted personal vehicle use. ///"��""' Other Parking Fee Meals Lodging (include dated, itemized receipts) (include dated, itemized hotel bill) SUBTOTAL Account Number -29i3 / 3o 1 .433100 Other — 7 V Account P"�\ escription SI TOTAL TO PAY APPROVED B $ 1 013. S NOTE: Attach copies of documentation, including invoices, receipts, seminar certili e, etc. Policy: Reimbursable mileage will be the lesser of actual miles driven from normal work location to training/meeting/conference location or the actual miles traveled from departure location to destination less the mileage of commute to normal work location. Instructions: If you are leaving and returning to work, skip boxes 2, 3 and 4. Otherwise, subtract 4 from the lower of 1, 2 or 3 for miles claimed. Date Where/Purpose Round trip miles: Miles claimed Work to destination to work (1) 1 Home to destination to home (2) Home to [destination to work]* to home (3) 1 From home to work (4) 370 4J% L--�-tC.11'O Y f g� M EC uo , Al - * Or [work to destination] /'�'o L YOUR TRIP TO: 3700 Braddock Ave NE 10MIN 1 8.411011 JR Est. fuel cost: $1.27 Trip time based on traffic conditions as of 3:44 PM on May 4, 2022. Print a full health report of your car with HUM Current Traffic: Light vehicle diagnostics (Boo) 906-2501 S S 1. Start out going southwest on Walnut St/County Hwy -58 toward W 6th St. Then 0.11 miles 0.11 total miles 2. Turn left onto W 7Th St. Then 0.07 miles 0.18 total miles r+ 3. Take the 1st right onto Highway 251MN-25. Continue to follow MN -25. If you are on E 7th St and reach Cedar St you've gone a little foo far. Then 7.83 miles 8.01 total miles 4. Turn right onto 35th SVCounty Hwy -138. 35th St is 0.3 miles past Westridge Ct. If you reach 3rd Ave you've gone about 0.1 miles foo far. Then 0.06 miles 8.06 total miles 5. Take the 1st right onto Braddock Ave. If you reach Agate Ave you've gone about 0.3 miles too far. Then 0.29 miles 8.35 total miles 6. 3700 Braddock Ave NE, Buffalo, MN 55313, 3700 BRADDOCK AVE NE is on the right. If you reach 44th St you've gone about 0.5 miles foo far. A Save to My Maps Use of directions and maps is subject to our Terms of Use. We don't guarantee accuracy, route condlllons or usability. You sasume all risk of use. httpsJtwvnv.mapquest.wMdirectionsltisVlluslminnesotwmontic 110155362-88191505-walnut-st-05.302825,-93.798794/tolusiminnesotalbuffalo/55313/3700-braddock-ave-ne-05.205714,-93.868002 112 - -' • '•' ow .ranmi a, muuw,anu, mry uwo�oo i n lu mw oiauuwn /we rvc ueecoons - ..p—es[ Silver Creek Lake Maria State Park Hevy County Park .ple lake �- Pt" r $sk rr>, Month f IN 9':!ialo http�://Wwlv.m�pqu��t.COMa1.�6tIonVII�V 1/u�Iminne�ot�Imontw�IbI86362-981G/606-walnut-�t-46.303BT6,-B3.1B8'lD4/tdu�/minn�sof�/buH�ld6631313'/00-br�tldxk-�v�-nom-46.308-114,-93.aaO.02 212 ED Re�4p I eet ACA,IA 2 zq, cco, lc-�-XS414- ?-D Z?-- YOUR Z YOUR TRIP TO: Breezy Point Resort 1 HR 27 MIN 1 84.7 MI Est. fuel cost: $9.51 MMM��/ Print a full health report of your car with HUM Trip time based on trams conditions as of 3;48 PM on May 4, 2022. Current Traffic: Light v vehicte diagnostics (800) 906-2501 V E 1. Start out going south on Oakcrest Ct toward Oakcrest Dr. Then 0.04 miles 0.04 total miles 2. Turn left onto Oakcrest Dr. Then 0.08 miles 0.11 total miles 3. Take the 1 st left onto Oakcrest Ln. If you reach the end of Oakcrest Dr you've gone a little too far. Then 0.10 miles 0.21 total miles 4. Take the 1st right onto 10th St. If you are on Garden Brook Dr and reach Brook Ct you've gone about 0.1 miles too far. Then 0.32 miles 0.53 total miles 5. Take the 2nd left onto Mayhew Lake Rd/County Hwy -1. Mayhew Lake Rd is 0.1 miles past Hillside Rd. If you reach Quebecor Rd you've gone about 0.6 miles too far. Then 1.35 miles 1.88 total miles T6. Enter next roundabout and take the 3rd exit onto Golden Spike Rd/County Hwy -3. Pass through 1 roundabout. Then 0.71 miles 2.59 total miles T7. Enter next roundabout and take the 3rd exit. Then 0.20 miles 2.79 total miles S. Turn slight right onto Highway 101US-10 W. Continue to follow US -10 W. Then 30.56 miles 33.36 total miles T 9. Stay straight to go onto Highway 371IMN-371. Continue to follow MN -371. Then 31.27 miles 64.63 total miles T 10. Stay straight to go onto State Highway 371/MN-371. Then 15.28 miles 79.91 total miles https:ihw .mapquest.corNdirechonsfist/l/us/mn/sauk-rapidW56379-4502/926-oakcrestct45.580058,-94.140670/to/us/minnesota/breezy-point-resort415901635 1/3 oeue _v—, — wo...wc w .,—<y r.su neem wn .w - may�uest T 11. Merge onto County Road l l/Paul Bunyan Scenic Byway/County Hwy -11. Then 4.33 miles - - - - - - 84.25 total miles T12. Stay straight to go onto Breezy Point Dr. Then 0.49 miles - 84.74 total miles ® 13. Breezy Point Resort, 9252 Breezy Point Dr, Pequot Lakes, MN, 9252 BREEZY POINT DR is on the right. Your destination is just past Circle Dr. If you reach Sand Beach Dr you've gone about 0.3 miles too far. Nb Save to My Maps Use of directions and maps is subject to our Terms of Use. We don't guarantee accuracy, route conditions or usability. You assume all risk of use. hope:IAW .mepqueet.MWdirs-eonMlstlt/us/mnlsauk4eplds/ee37"502i926c kerest--46.ee00ee,-94.140e70Rdus/minnetwlwbr .y-point+es.rt-416901036 2/3 •9u�eln Red Ey.' Y r Bre ion �l • , M Oylen. •. 6tue GHSs i + ..� • Otto �,+ •"/ Builerd - Y��. (��• iA ! �1AI ESOTA Hyl 9 i I! praL•lo ! X • 1 `, I � Eapie valley •� `� % = Tuttle Cre,k S )' • r + Pulaski -ef.� a .,�� Leigh Holme+Clly.� /� 1 a •� � (`�e�� .4. r •4 w , `,• Sauk Cenuu ' • Oroeaway ' •i ' '�, • rreepWT Aff-Wr fill ' 1 �. i� •. Lf 014 lar �•"f ' '1e1_I�/ f � !\ . httpe://ww.v,mepqueat.c0m/diredlone/IInVt/uNmn/eeuk-repltle/60319-4002/B20oekoreet-et-46.600008,-84.140070AW,s/minnes wbreezy-point-meo ,, 1500, a30 3/3 21 CITY OF MONTICELLO VOUCHER Please complete, sign, and submit to Accts Payable by due date for check run. ® Disb. Ck. Batch Pay by:a Z �L VENDOR: i�a NameAE-7L G Address l Address 2 (/! zoo City/ST/Zipy- L,= \ f::i; r Statement/ D 1 Invoice No: DISTRIBUTION OF EXPENSE TOTAL: $tzal(" 0 APPROVED voucher.xls DAVE: ! 1 Z.' Z o z. L rW Description project Code VIM IF ff i �Mu i * TOTAL: $tzal(" 0 APPROVED voucher.xls DAVE: ! 1 Z.' Z o z. L rW 0 y Res Mr. Jim Thares City of Monticello, MN 505 Walnut Ave Ste 1 Monticello, MN 55362-8822 Project Manager Nicole Gaustad May 10, 2022 Project No: P05359-2021-002 Invoice No: 80729 Project P05359-2021-002 EDA Integrated Marketing and Communications Plan Professional Services for theperiod`April 2_2022 to April 29 2022 Phase 130 Communications Services Fee Total Fee 24,971.00 Percent Complete 100.00 Total Earned 24,971.00 Previous Fee Billing 6,055.00 Current Fee Billing 18.916.00 Total Fee 18,916.00 Phase Total $18,916.00 Project Invoice Total $18,916.00 Please make checks payable to: Advanced Engineering and Environmental Services, LLC • 4050 Garden View Dr, Ste 200, Grand Forks. 14D 58201 WE aGCeptmost major credit card for payment: a 3% surcharge vrill be added to all credit card transactions. To pay by credit card please call 701-74fi-8037. Accounts Payable Transactions by Account CITY F User: .David—d-1056Printed: 05/20/2022 - 3:31PM onti effo Batch: 00201.05.2022 Account Number Vendor Description GL Date Check No Amount PO No 213-46301-433100 US BANK CORPORATE PMT SYS Breezy Point Resort - Redevelopment 05/15/2022 0 306.03 213-46301-433100 US BANK CORPORATE PMT SYS MN DEED - Business & Community ] 05/15/2022 0 383.07 213-46301-433100 US BANK CORPORATE PMT SYS Breezy Point Resort - Redevelopment 05/15/2022 0 102.01 213-46301-433100 US BANK CORPORATE PMT SYS Breezy Point Resort - Redevelopment 05/15/2022 0 102.01 Vendor Subtotal for Dept:46301 893.12 213-46301-438200 CITY OF MONTICELLO 7256-004 - 130 Brdwy- Stormwtr 05/15/2022 0 26.25 213-46301-438200 CITY OF MONTICELLO 7256-007 - 103 Pine St- EDA 05/15/2022 0 45.50 213-46301-438200 CITY OF MONTICELLO 7256-008 - 112 River St. W EDA 05/15/2022 0 45.50 Vendor Subtotal for Dept:46301 117.25 213-46301-443990 US BANK CORPORATE PMT SYS Domino's Pizza -Food for EDA Meeti 05/15/2022 0 53.05 Vendor Subtotal for Dept:46301 53.05 Subtotal for Fund: 213 1,063.42 Report Total: 1,063.42 AP -Transactions by Account (05/20/2022 - 3:31 PM) Page 1 Vendor rte a► d1 Date of Transaction 04/12/22 CITY OF MONTICELLO City Hall Card Transaction Please attach the invoice/receipt and any other available documentation to this form. To be completed by purchaser: Amount $ 306.03 �lUD.a► x3 Circle purchaser name: Deb Cole Tracy Ergen Vicki Leerhoff Rachel Leonard Sarah Rathlisberger Jennifer Schreiber Angela Schumann Jim Thares Beth Green Liz Lindrud Haley Foster Trevor Mack Hayden Stensga, Signature Signature Date approved Special Project # or Description Circle department code: 101-41110 City Council 101-41310 Administration 101-41410 City Clerk/Elections 101-41520 Finance 101-41800 Human Resources 101-41910 Planning and Zoning 101-41920 Data Processing 101-41940 Citv Hall 213-4 HRA 702-00000 Central IT Circle expense code: 421990 General Operating Supplies 431950 Newsletter Services ..461990 Miscellaneous Prof Services 432200 Postage r-431100-Travel/Tr— ' i Pnst- 443300 Dues Membership & Subscrip 443700 Licenses and Permits 443990 Misc. Other Expense Other jo 2---�LM40 1-800-432-3711 i Q Tree ofONLINE RESERVATIONS ( S"rHOME I CONTACT US I SITE MAP R E S 0 R T LODGING MEL INGS & EVENTS GOLF D KING & ENTEF TAINMENi RECREATION LEARN MORE Dates Rum R, Races Guest Details Revieve Make a Room Reservation CONFIRMATION Your reservation is confirmed please make a note of the Confirmation Number. Confirmation Number rebpr35270 You are booking: Number of Rooms 1 Room Type Inn and Suites, Breezy Inn King Suite Nights Stay 1 Arrival Date Thursday, April 28, 2022 Departure Date Friday, April 29, 2022 Adults 1 Group booking Brownfields & Beyond Brownfields & Beyond details Subtotal $95.00 Tax and Fees $7.01 Deposit due at time of booking $102.01 Total $102.01 Guest Name Jim Thares Address 505 Walnut Street City Monticello State/Province MN Zip/Postal Code 55362 USA E-mail Address jim.thares@ci.monticello.mn.us Phone 7632713254 Credit Card Visa ***********"3413 Expiry 1/2026 Confirmation Sign In I Register Cancellation Policy: Notice of at least 30 days is required for refund for most lodging accommodations (less a service charge ranging from $25-150 depending on the size of accommodation). Guests are responsible for the entire length of reserved stay. Units with four bedrooms or more and Group Reservations require 90 days or more notice. No Show Policy: In the event of a "No Show" guests will be responsible for 100% of the stay. 1-800-432-31111 r ONemvt LINE RESERVATIONS HOME I CONTACT US I SITE MAP R F S n R T LODGING MEFTINGS & EVFNTS GOL F DINING 2. ENTERTAINMENT RECREATION LEARN MiORE Dates Rom & Rates � Guest Details � Rev�av! Make a Room Reservation CONFIRMATION Your reservation is confirmed please make a note of the Confirmation Number. Confirmation Number rebpr35269 You are booking: Number of Rooms 1 Room Type Inn and Suites, Breezy Inn King Suite Nights Stay 1 Arrival Date Thursday, April 28, 2022 Departure Date Friday, April 29, 2022 Adults 1 Group booking Brownfields & Beyond Brownfields & Beyond details Subtotal $95.00 Tax and Fees $7.01 Deposit due at time of booking $102.01 Total $102.01 Guest Name Angela Schumann Address 505 Walnut Street City Monticello State/Province MN Zip/Postal Code 55362 USA E-mail Address Angela.schumann@ci.monticello.mn.us Phone 7632713224 Credit Card Visa *******"* 3413 Expiry 1/2026 Confirmation Sign In I Register Cancellation Policy: Notice of at least 30 days is required for refund for most lodging accommodations (less a service charge ranging from $25-150 depending on the size of accommodation). Guests are responsible for the entire length of reserved stay. Units with four bedrooms or more and Group Reservations require 90 days or more notice. No Show Policy: In the event of a "No Show" guests will be responsible for 100% of the stay. 1-800-432-3717 iQ Tube � ONLINE RESERVATIONS HOME I CONTACT US I SITE MAP R E S n R T LODGING MFETINGS R EVENTS GOLF DIf�ING ?-, FI�TERTAINNIFNT RF..CREATION LEARN MORE Dates Room E Rates Guest Details Reviev., Make a Room Reservation CONFIRMATION Your reservation is confirmed please make a note of the Confirmation Number. Confirmation Number rebpr35271 You are booking: Number of Rooms 1 Room Type Inn and Suites, Breezy Inn King Suite Nights Stay 1 Arrival Date Thursday, April 28, 2022 Departure Date Friday, April 29, 2022 Adults 1 Group booking Brownfields & Beyond Brownfields & Beyond details Subtotal $95.00 Tax and Fees $7.01 Deposit due at time of booking $102.01 Total $102.01 Guest Name Hayden Stensgard Address 505 Walnut Street City Monticello State/Province MN Zip/Postal Code 55362 USA E-mail Address hayden.stensgard@ci.monticello.mn.us Phone 17632713206 Credit Card Visa ***********"3413 Expiry 1/2026 Corovsr;ra:io:s Sign In I Register Cancellation Policy: Notice of at least 30 days is required for refund for most lodging accommodations (less a service charge ranging from $25-150 depending on the size of accommodation). Guests are responsible for the entire length of reserved stay. Units with four bedrooms or more and Group Reservations require 90 days or more notice. No Show Policy: In the event of a "No Show" guests will be responsible for 100% of the stay. April 1, 2022 Steve Johnson President, Monticello EDA 505 Walnut St. Suite 1 Monticello, MN 55362 Dear Mr. Johnson: Re: Grant Awards — Redevelopment Grant Program Sent via email to: Steve.Johnson@ix.netcom.com The Department of Employment and Economic Development is pleased to announce the recent awards from the Redevelopment Grant Program. Following is a list of the projects selected for funding along with the grant amounts. GRANTEE PROJECT GRANT AWARD Bloomington Gyropolis Investments $58,400 Browns Valley ToughAg Redevelopment $117,000 Duluth EDA Historic Duluth Armory $672,918 Edina 7001 France Avenue $650,000 Faribault Farmer Seed and Nursery $611,455 Mankato Range Street Redevelopment $299,479 Monticello EDA Block 52 Redevelopment $517,500 St. Paul 176 South Robert Street $158,196 Total $3,084,948 The Redevelopment Grant Program continues to be a very popular program that is over -subscribed with funding requests. We are very proud of this program and the positive effects it has on communities. We are pleased to partner with our grantees to revitalize areas and provide opportunities for job creation and tax base increases that help our communities and State thrive. Congratulations to the above grant recipients! They can be proud of a job well done! For additional information, contact Kristin Lukes, Brownfields and Redevelopment Director at 651-259-7451. Regards, Steve Grove Commissioner C: Senator Bruce D. Anderson Representative Marion O'Neill Minnesota Department of Employment and Economic Development Economic Development Division, Office of Community Finance 332 Minnesota St. Ste. E200, St. Paul, MN 55101 mn.gov/deed April 5, 2022 Jim Thares Economic Development Manager 505 Walnut Street, Suite 1 Monticello, MN 55362 Sent via email: jim.thares@ci.monticello.mn.us Re: Redevelopment Grant Award for the Block 52 Redevelopment Project Dear Mr. Thares: Congratulations on your recent Redevelopment Grant award of $517,500 from the Department of Employment and Economic Development (DEED). I wanted to introduce myself as the DEED project manager for this grant. The purpose of this letter is to share information necessary for the administration of this grant. Grant Agreement A grant agreement will be emailed to you soon. Please read it carefully, sign, and return to DEED via email as soon as possible. Signatures must be those authorized in the application's resolution. Once the grant agreement is fully executed, work may begin, and funds may be requested and disbursed. A few noteworthy sections of the grant agreement include: Clause 1.1 Effective Date: Costs incurred prior to the execution of the grant agreement are not eligible for reimbursement. Do not commence any work under the contract without prior approval from DEED. Clause 1.2 Expiration Date: All eligible activities listed in the grant agreement must be completed and all funds must be drawn by June 30, 2025. Clause 2.1 Duties, Deliverables, and Completion Dates: Grant funds were awarded for the project described in the application. Any modifications to that project, including, but not limited to, the redevelopment plan, development plan, budget, or schedule must be approved by DEED. Please notify DEED of any changes to the project immediately. Clause 4.1 (a) Prosect Costs: This is the grant's approved budget. Only the activities listed in this section of grant agreement are eligible for grant reimbursement and/or match. Clause 4.2 (a) Invoices: DEED makes payments on a reimbursement basis and will provide a payment request form once the grant agreement is fully executed. Payment requests submitted to DEED must be accompanied by supporting invoices from the general contractor and subcontractors performing the grant related work. Invoices must clearly state what work was completed, the dates the work was completed, and that work must directly relate to the activities listed in the approved budget. The state's fiscal year ends June 30`h. The grantee should make every effort to submit costs for the same fiscal year in which they were incurred. Additionally, final payment requests must be submitted to DEED 30 days prior to the grant -term expiration date. Business and Community Development Division 11t National Bank Building 332 Minnesota Street, E200 Saint Paul, MN 55101 www.mn.gov/deed Jim Thares April 5, 2022 Page 2 Clause 6 Authorized Representative: If the grantee's representative changes, please notify DEED immediately. Clause 9 Accounting: DEED staff is required to audit the grant within one year of the grant's status change to "closed, pending monitoring." This change in grant status typically occurs once 100% of grant funds have been disbursed or the grant term ends. Be sure to retain all documents related to the grant. An audit of your accounting records will be conducted and must clearly show DEED funds (and any matching funds, if applicable) as revenues and expenditures. Clause 14.2 Termination for Cause: Redevelopment activities funded by the grant must commence shortly after receiving an award, and the first Reimbursement Request must be submitted to DEED by June 30, 2023. The request must include invoices for eligible redevelopment costs incurred after the grant was awarded. Failure to meet this deadline may result in the termination of the grant. Clause 15 Grant Repayment: Repayment of the grant will be required if the project fails to substantially provide the benefits listed in the grant application within five years from the date of the award. These benefits are listed below. Clause 17 Reporting: Annual reports must be submitted to DEED no later than July 25th until project benefits are achieved. Annual report forms will be provided by your DEED project manager. Clause 19 Minnesota Business Subsidy Law: This grant may be considered a business subsidy under Minn. Stat. § 1161.993, Subd. 3. It is the grantee's responsibility to determine applicability. Proiect Benefits The application for which this grant award is made was scored using strict criteria. The project benefits included in your application outscored others that did not receive funding. Therefore, it is important that the benefits listed in the application are achieved. For this project, the expected benefits are: Local Tax Base Increase: $284,510 New Jobs: 45 Retained Jobs: 36 Private Investment (construction costs): $26,317,000 Total Housing Units: 87 Affordable Housing Units: 0 Lastly, DEED wants to emphasize the importance of communication throughout the life of the project. We understand that projects are fluid and changes are sometimes necessary. We are invested in this project and want it to succeed. Clear and open communication is key to making the necessary adjustments to keep the project moving forward. DEED is excited to partner with you on the Block 52 Redevelopment Project. If you have any questions, please contact me at 651-259-7448 or Claudia.ursulescu.kracht@state.mn.us. Sincerely, Claudia Ursulescu Kracht Brownfields and Redevelopment Unit Julie Cheney From: Jim Thares Sent: Wednesday, April 20, 2022 5:53 PM To: Julie Cheney Cc: Vicki Leerhoff Subject: Expenditure Back Up - Related to MN -Redevelopment Grant Award (see attached files) Attachments: RDGP New Grant Letter -Monticello - Block 52 Redev.pdf; Monticello EDA award.pdf; Item 6. Exh A-Brownfields-Redev conf-program-Agenda - 04-20-22.pdf Julie, here is the back up information for the Redevelopment Conference; related to Grant award. RFil h Nab • 1 THURSDAY, APRIL 28 -FRIDAY, APRIL 29, 2022 EMPLOYMENT AND ECONOMIC DEVELOPMENT CONFERENCE SCHEDULE - THURSDAY, APRIL 2 •... 7:30 AM Registration Opens Breezy Point Lobby 7:45 AM - 8:45 AM Breakfast Buffet and Networking Whitebirch Foyer, [,and II 8:45 AM -9:00 AM Welcome Kristin Lukes, DEED Whitebirch I, II 9:00 AM -10:15 AM 10:15 AM -10:30 AM 10:30 AM -11:45 AM 10:30 AM -11:45 AM 11:45 AM -12:45 PM 12:45 PM - 1:00 PM 1:00 PM - 2:00 PM 2:00 PM -2:15 PM 2:15 PM - 3:15 PM 2:15 PM -3:15 PM 3:15 PM -3:30 PM 3:30 PM - 4:30 PM 4:30 PM - 4:35 PM KEYNOTE PLENARY Filling Empty Buildings and Lots: Practical Ideas and Answers Networking Break CONCURRENT BREAKOUT SESSION Vapor Intrusion and Legal Liability Issues CONCURRENT BREAKOUT SESSION Show me the Money Lunch PLENARY SESSION DEED Commissioner Address PLENARY SESSION When is that ^&•$ Building Going to Develop? Networking Break CONCURRENT BREAKOUT SESSION Environmental Justice CONCURRENT BREAKOUT SESSION Redevelopment Roundtable Networking Break PLENARY SESSION Building Community: A Cooperative Effort to Redevelopment Day 1 Wrap Up Deb Brown, SaveYour.Town Whitebirch I, II Dan Schleck, Messerli Kramer Minnesota I Mark Ethan, Northeast Bank John Lichter, Carlson McCain Chris Goscinak, MPCA Kristin Lukes, DEED Minnesota II Heidi Paper, Stantec Whitebirch I, II Steve Grove, DEED Whitebirch I, II Commissioner John Hinzman, City of Whitebirch I, II Hastings Kristin Prososki, SEH Ned Brooks, MPCA Minnesota I Shanna Schmitt, MPCA Amy Schremmp, DEED Minnesota II (Moderator) Sarina Otaibi, Department of Whitebirch 1,11 Public Transformation Melissa Peterson, Bluenose Gopher Public House Kristin Lukes, DEED Whitebirch I, 11 Evening Reception 5:00 - 7:00 PM Hosted by Inland Development Partners, Braun Intertec Lakeside Ballroom, located in the Marina II Building on the second Floor For full descriptions, bios and presentations, scan the QR Code, or go to htt.ps://mn.gov/deed/events/brownfields CONFERENCE SCHEDULE - -'RIDA',APRT 8:00 AM - 8:45 AM Breakfast Buffet and Networking Whitebirch Foyer, I, and II 8:45 AM - 9:00 AM Welcome and Recap of Day 1 Meredith Udoibok, DEED Whitebirch I, 11 9:00 AM - 10:15 AM PLENARY SESSION Monte Hilleman, Port Whitebirch I, 11 Then and Now: Market Drivers Consulting/Saint Paul Port of Land Use and Economic Authority Development 10:15 AM - 10:30 AM Networking Break 10:30 AM - 11:45 AM PLENARY SESSION Samantha DiMaggio, City of Whitebirch 1, 11 The Good, the Bad and the Farmington Ugly: Behind the Scenes of a Elissa Hansen, Northspan Development Deal Adam Kienberger, City of Rosemount Amanda Othoudt, Benton Econ Partnership, Inc Julie Wischnack, City of Minnetonka Jordan Zeller, Renville County HRA/EDA 11:45 AM - 12:00 PM Closing Kristin Lukes, DEED Whitebirch I, 11 CONFERENCE MAPS Convention Center Lower Level MNNESOTA 1 ,ode, a N,E� _-------—'- S ' NF` MINNESOTAII o s C Convention Center Upper Level WHITEBIRCH I Aoo� _------_-- J rt,cMEM1 woMEN WHITEBIRCH It THURSDAY LUNCH min LouCKS THURSDAY BREAKFAST CARL.SON MCCAIN FRIDAY BREAKFAST ® Stantec NETWORKING BREAKS ESSERLI AER ATTORNEYS & ADVISORS LWO KEYNOTE SPEAKER BRAUN INTERTEC The Science You Build On. PLENARY SPONSOR LANDMARK 911118 Environmental Brown to Green, Guaranteed. `" AWRICn` ENGINEERING , TEsrING, Inc. SEH -;, SOUTHWEST INITIATIVE FOUNDATION R1Stoel RiVeSLII CONFERENCE SUPPORTERS Brainerd Lakes Area Economic Development Corporation Minnesota Brownfields BROWN FIELDS'',, BEYOND BreezyPoint (open) EMPLOYMENT AND ECONOMIC DEVELOPMENT Vendor Date of Transaction 4 CITY OF MONTICELLO City Hall Card Transaction Please attach the invoice/receipt and any other available documentation to this form. To be completed by purchaser: Amount $ 3 67 Circle purchaser name: Deb Cole Tracy Ergen Vicki Leerhoff Rachel Leonard Sarah Rathlisberger Jennifer Schreiber Angela Schumann Jim Thares Beth Green Liz Lindrud Haley Foster Trevor Mack �- �2�5 • vv x 3� P. (0 Cf X 3J Date approved Special Project # or Description Circle department code: 101-41110 City Council 101-41310 Administration 101-41410 City Clerk/Elections 101-41520 Finance 101-41800 Human Resources 101-41910 Planning and Zoning 101-41920 Data Processing 101-41940 City Hall 213-46301 HRA 702-00000 Central IT Circle expense code: 421990 General Operating Supplies 431950 Newsletter Services 431990 Miscellaneous Prof Services 432200 Postage xpense 443700 Licenses and Permits 443990 Misc. Other Expense Other rV�i1 MINNeSOTA Exit Confirmation Please keep a record of your Confirmation Number, or print this page for your records. Confirmation Number MLSBCD000103727 Payment Details Description Business and Community Development MN DEED Business and Community Development https://mn.gov/deed/ Payment Amount $125.00 Service Fee $2.69 Total Amount $127.69 Payment Date 04/06/2022 Status PROCESSED Payment Method Payer Name Vicki Leerhoff Card Number *3413 Card Type Visa Approval Code 020389 Confirmation Email vicki.leerhoff@ci.monticello.mn.us Billing Address Address 1 505 Walnut Street City/Town Monticello State/Province/Region MN Zip/Postal Code 55362 Country United States mei MINNeSOTA Exit Confirmation Please keep a record of your Confirmation Number, or print this page for your records. Confirmation Number MLSBCD000103719 Payment Details Description Business and Community Development MN DEED Business and Community Development https://mn.gov/deed/ Payment Amount $125.00 Service Fee $2.69 Total Amount $127.69 Payment Date 04/06/2022 Status PROCESSED Payment Method Payer Name Vicki Leerhoff Card Number *3413 Card Type Visa Approval Code 028778 Confirmation Email Vicki.leerhoff@ci.monticello.mn.us Billing Address Address 1 505 Walnut Street City/Town Monticello State/Province/Region MN Zip/Postal Code 55362 Country United States Vicki Leerhoff From: MN DEED Business and Community Development <epaynoreply@usbank.com> Sent: Wednesday, April 6, 2022 11:49 AM To: Vicki Leerhoff Subject: Payment Confirmation for MN DEED Business and Community Development *** PLEASE DO NOT RESPOND TO THIS EMAIL *** Thank you for your payment. This email is to confirm your payment submitted on Apr -06-2022 for MN DEED Business and Community Development. Confirmation Number: MLSBCD000103725 Payment Amount: $125.00 Service Fee: $2.69 Total Amount: $127.69 Scheduled Payment Date: Apr -06-2022 Amount Due: $125.00 Payer Name: Vicki Leerhoff Credit Card Number: *3413 Credit Card Type: VISA Approval Code: 026019 Merchant: Business and Community Development Website: https://mn.gov/deed/ If you have questions about this payment or need assistance, please view the payment online at https://mn.gov/deed/ , or call Customer Service at (651)259-7298. Thank you for using the State of MN ELS Business and electronic payment system. U.S. BANCORP made the following annotations Electronic Privacy Notice. This e-mail, and any attachments, contains information that is, or may be, covered by electronic communications privacy laws, and is also confidential and proprietary in nature. If you are not the intended recipient, please be advised that you are legally prohibited from retaining, using, copying, distributing, or otherwise disclosing this information in any manner. Instead, please reply to the sender that you have received this communication in error, and then immediately delete it. Thank you in advance for your cooperation. Vendor Date of Transaction 4 1— CITY OF MONTICELLO City Hall Card Transaction Please attach the invoice/receipt and any other available documentation to this form. To be completed by purchaser: Amount $ Circle purchaser name. Trac Er en cki Leerho Rache eonard Sarah Rathlisberger Jennifer Schreiber Angela Schumann Jim Thares Beth Green Liz Lindrud Haley Foster Trevor Mack Hayden Stensgard Dee Yanta JC Westphal VX Employe 5S' nature ffAAT' Supervisor SigInatu Date approved Special Project #i or Description Circle department code: 101-41110 101-41310 101-41410 101-41520 101-41800 101-41910 101-41940 :213_-46500 0213-46301 7,07 `00000 Circle expense code: 421990 431950 431990 432200 433100 443300 443700 443990 Other aA Av*a A&A4-� City Council Administration City Clerk/Elections Finance Human Resources Planning and Zoning City Hall Economic Development H R Central IT General Operating Supplies Newsletter Services Miscellaneous Prof Services Postage Travel/Training Expense Dues Membership & Subscrip Licenses and Permits Misc, Other Expense have received the goods 1yes in the amounts own hereon, I agree that my liability for this bill is not waived and agree to be held personally liable in the event that the ir,. on, company, or association fails to pay for any, part or the full amount of these charges. If a credit card charge, I further agree to perform the . :Lt forth in the cardholder's agreement with the issuer. Guest Signature: 1of1 Breezy Point Resort April 29, 2022 F 9252 Breezy Point Dr. Breezy Point, MN 56472 y Phone: 1-800-432-3777 or 218-562-7147 Fax: 218-562-4930 www. breezy pointresort. corn Ft E. C7 R T Reservation Number 3750_:.. Send to Hayden Ste,: 505 Walnut Monticello, 2 Phone 17632713^ Guest Name Hayden S. Arrival Date Departure Date 4127122 4129122 Group Brownfield .. yond Room Information 3333 - Breezy Inn King Executive Ste Bill To Stensgard, 505 Walnut[ Monticello. :2 Phone 17632713 Folio Number 542638 Trans Date Desci.. Voucher Amount Charges 4127122 Broww . ._ : Ct�yond inn -3333 9500 4127122 Sales Tu. ; .375% inn -3333 7. 1 4128/22 Bravo- E:_ and inn -3333 95. 4128122 Sales inn-3333 7 Total 2 A. Payments 4112122 Visa STENSGARD, HAYDE######## 3413 094671 0000364935 -102.01 X4127122 Visa STENSGARD, HAYDE# ##1 # j#3413 030334 3333 0000366177 -102.01 Tota Balance Due: .00 have received the goods 1yes in the amounts own hereon, I agree that my liability for this bill is not waived and agree to be held personally liable in the event that the ir,. on, company, or association fails to pay for any, part or the full amount of these charges. If a credit card charge, I further agree to perform the . :Lt forth in the cardholder's agreement with the issuer. Guest Signature: Vendor Date of Transaction CITY OF MONTICELLO City Hall Card Transaction Please attach the invoice/receipt and any other available documentation to this form. To be completed by purchaser: Amount $ ZQ Circle purchaser name: Trac en icki Leerho Rache eonar Sarah Rathlisberger Jennifer Schreiber Angela Schumann Jim Thares Beth Green Liz Lindrud Haley Foster Trevor Mack Hayden Stensgard Dee Yanta JC Westphal Z?� ?AJ& Employep,Signature Supervis r ignzbk Date approved Special Project # or Description Circle department code: 101-41110 101-41310 101-41410 101-41520 City Council Administration City Clerk/Elections Finance 101-41800 Human Resources 101-41910 Planning and Zoning 101-41940 City Hall 213,4650 �213-01HRA Economic Development 702-00000 entral IT Circle expense code: 421990 431950 431990 432200 433100 443300 443700 443990 Other General Operating Supplies Newsletter Services Miscellaneous Prof Services Postage Travel/Training Expense Dues Membership & Subscrip Licenses and Permits Misc. Other Expense f� t. Reservation Number 3750"74 Send to Jim Thares 505 Wal..•.t S:r A Montice . -=5362 Phone 7632713:" Guest Name Jim Th,.. 1of1 April 29, 2022 Breezy Point Resort 9252 Breezy Point Dr. Breezy Point, MIN 56472 Phone: 1-800-432-3777 or 218-562-7147 Fax: 218-562-4930 www.breezypointresort.com Arrival Date Departure Date 4127122 4129122 Group Brownf,, . _-yond _ _ Room Information 3332 - Breezy Inn King Executive Ste Bill To Thares. 505 M. Q.Tt Montict .5362 Phone 763271_ Folio Number 542637 Trans Date Des Voucher Amount Charges 4127122 Bro. x Beyond inn -3332 95.00 4127122 Salo_ Tax 375% inn -3332 7.01 4128122 Brf- a Beyond inn -3332 95.00 4128!22 Sal. 375% inn -3332 7.01 Payments 4112122 4/27122 Tat Viss Visa Tot. its 204.02 THARES,JIM X3413 028475 0000364934 THARES, JIM #3413 030639 3332 0000366178 -204.02 Balance Due: 0.00 have received the goods .rvices in the amounts own hereon. 1 agree that my liability fort is bill is not wave a—na agree to be ReTa persona y liable in the event that the , person, company, or association fails to pay for any part or the full amount of these charges. If a credit card charge, I further agree to perform it .,is set fonii n the cardholder's agreement with the issuer. Guest Signature: _ _ Debbie Davidson From: Sent: To: Subject: Attachments: City of Monticello, MN 505 Walnut St, Ste 1 Monticello, MN 55362 763.271.3228 8AMto4:30PM Account Information Account: Name: Service Address: Service Period: Billing Date: Due Date: Meter Reading noreply@merchanttransact.com Friday, March 4, 2022 8:03 AM AP Your bill from City of Monticello, MN is ready. 3-1-22 Insert 1.pdf; 3-1-22- Insert 2.pdf; BACK OF BILL.pdf 007256-004 MONTICELLO EDA (213-46301) 130 BROADWAY E 2/1/2022 to 2/28/2022 (28 days) 3/3/2022 4/1/2022 Previous Reading Current Reading Serial Date Reading Date Reading Cons Current Charges Water: ACH CREDIT - AUTO PAY ($1.25) Water: EBILL CREDIT ($0.50) Stormwater: STORMWATER / NON-RESIDENTIAL $28.00 Total Current Charges: $26.25 Bill Summary Previous Balance: $26.25 Payments Received: $26.25 Adjustments: $0.00 Current Charges: $26.25 * Total Amount Due by: 4/1/2022 $26.25 * This was the amount due at the time of billing. To view your amount due at the current time and make a payment click here. Auto payment is setup for this customer account, do not pay. 1 Debbie Davidson From: Sent: To: Subject: Attachments: City of Monticello, MN 505 Walnut St, Ste 1 Monticello, MN 55362 763.271.3228 8AMto4:30PM Account Information Account: Name: Service Address: Service Period: Billing Date: Due Date: Meter Reading Serial Current Charges noreply@merchanttransact.com Friday, March 4, 2022 8:03 AM AP Your bill from City of Monticello, MN is ready. 3-1-22 Insert 1.pdf; 3-1-22- Insert 2.pdf; BACK OF BILL.pdf Previous Reading Date Reading Water: Water: CITY WATER - NON-TAXABLE Water: ACH CREDIT - AUTO PAY Water: EBILL CREDIT Water: WATER - STATE CONNECTION FEE Sewer: SEWER - COMMERCIAL Stormwater: STORMWATER / NON-RESIDENTIAL Total Current Charges: Bill Summary Previous Balance: Payments Received: Adjustments: Current Charges: * Total Amount Due by: 4/1/2022 * This was the amount due at the time of billing. 007256-007 MONTICELLO EDA (213-46301) 103 PINE ST 2/1/2022 to 2/28/2022 (28 days) 3/3/2022 4/1/2022 Current Reading Date Reading To view your amount due at the current time and make a payment click here. Auto payment is setup for this customer account, do not pay. 1 Cons $0.00 $8.04 ($1.25) ($0.50) $0.81 $10.40 $28.00 $45.50 $45.50 $45.50 $0.00 $45.50 $45.50 Debbie Davidson From: Sent: To: Subject: Attachments: City of Monticello, MN 505 Walnut St, Ste 1 Monticello, MN 55362 763.271.3228 8AMto4:30PM Account Information Account: Name: Service Address: Service Period: Billing Date: Due Date: Meter Reading noreply@merchanttransact.com Friday, March 4, 2022 8:03 AM AP Your bill from City of Monticello, MN is ready. 3-1-22 Insert 1.pdf; 3-1-22- Insert 2.pdf; BACK OF BILL.pdf Previous Reading Serial Date Reading 68621907 2/1/2022 43904 Current Charges Water: Water: CITY WATER - NON-TAXABLE Water: ACH CREDIT - AUTO PAY Water: EBILL CREDIT Water: WATER - STATE CONNECTION FEE Sewer: SEWER - COMMERCIAL Stormwater: STORMWATER / NON-RESIDENTIAL Total Current Charges: Bill Summary Previous Balance: Payments Received: Adjustments: Current Charges: * Total Amount Due by: 4/1/2022 * This was the amount due at the time of billing. 007256-008 MONTICELLO EDA (213-46301) 112 RIVER ST W 2/1/2022 to 2/28/2022 (28 days) 3/3/2022 4/1/2022 Current Reading Date Reading 3/1/2022 43904 To view your amount due at the current time and make a payment click here. Auto payment is setup for this customer account, do not pay. 1 Cons 0 $0.00 $8.04 ($1.25) ($0.50) $0.81 $10.40 $28.00 $45.50 $45.50 $45.50 $0.00 $45.50 $45.50 Vendor O'%�Y? h d S rpxlxt Date of Transaction CITY OF MONTICELLO City Hall Card Transaction Please attach the invoice/receipt and any other available documentation to this form. To be completed by purchaser: Amount $5-3, O Circle purchaser name: Deb Cole Trac ren Vicki Leerhoff e eonard Sarah Rathlisberger Jennifer Schreiber Angela Schumann Jim Thares Beth Green Liz Lindrud Haley Foster Trevor Mack Hayden Stensgard mpI yee Signa Supe ' or Signature 41%,4 y Z ate ap ro ed Special Project # or Description Circle department code: 101-41110 101-41310 101-41410 101-41520 101-41800 101-41910 101-41920 101-41940 213-46500 213-46301 702-00000 Circle expense code: 421990 431950 431990 432200 433100 443300 443700 443990 Other City Council Administration City Clerk/Elections Finance Human Resources Planning and Zoning Data Processing City Hall Economic Development HRA Central IT General Operating Supplies Newsletter Services Miscellaneous Prof Services Postage Travel/Training Expense Dues Membership & Subscrip Licenses and Permits Misc. Other Expense Vicki Leerhoff From: Domino's Pizza <confirmation@e-confirmation.dominos.com> Sent: Wednesday, April 13, 2022 10:23 AM To: Vicki Leerhoff Subject: Your Domino's Order ORDER MENU COUPONS LOCATIONS Thank you for placing your order at Dominos.com! If you have any questions about your order, please call the store directly at 763-295-2424. In case the store needs to reach you, we'll call the phone number below. If you do not answer we VV ua ui iauiv tv ua vci yvui vl U1. F-1 Customer Information Name on Order: Vicki Leerhoff Delivery Address: 505 WALNUT ST, MONTICELLO, MN 55362-8821 Callback Phone #: 763-295-2711 Your Domino's Store: Domino's #7347 112 W Broadway St Monticello MN 55362 763- 295-2424 Delivery Time: 4/13/2022 4:30PM Order Details Order #: 9 Date: 04/13/2022 10:22AM The following order is being delivered hot and fresh to your door: Quantity Description Amount Medium (12") Hand Tossed ExtravaganZZa 1 Whole: Robust Inspired Tomato Sauce, Extra Cheese, $9.99 Pepperoni, Ham, Mushrooms, Onions, Green Peppers, Black Olives, Italian Sausage, Beef Medium (12") Hand Tossed Wisconsin 6 Cheese Pizza 1 Whole: Robust Inspired Tomato Sauce, Cheese, Cheddar Cheese, $9.99 Shredded Provolone Cheese, Feta Cheese, Shredded Parmesan Medium (12") Hand Tossed Cali Chicken Bacon Ranch 1 Whole: Cheese, Bacon, Premium Chicken, Diced Tomatoes, $9.99 Shredded Provolone Cheese, Ranch Medium (12") Hand Tossed Deluxe 1 Whole: Robust Inspired Tomato Sauce, Cheese, Pepperoni, $9.99 Mushrooms, Onions, Green Peppers, Italian Sausage Food 8 Bev Total: $39.96 Tax: $3.30 Delivery Charge: $4.79 Tip Amount: $5.00 Total: $53.05 Piece of the Pie Rewards° 10 Rewards Points for an order of $10 or more. Points typically become available after 48 hours and remain in pending status until that point. Visit your Pizza Profile to track your points. Payment Details Payment Method: Credit Card $53.05 Any Delivery Charge is not a tip paid to your driver. *Drivers carry less than $20 in change and checks are NOT accepted for online orders. x x *Domino's Delivery Insurance Program is only available to Piece of the Pie Rewards® members who report an issue with their delivery order through the form on order confirmation or in Domino's Tracker® within 16 hours of the time of purchase. If you are not a member, you must enroll within seven (7) days after you report an issue to receive the Delivery Insurance Points or you may elect to receive a discount coupon in lieu of the points. Store participation may vary. Limit: (1) claim per 2 Accounts Payable Transactions by Account CITY F �User: Debbie.Davidsononti Printed: 06/01/2022 - 10:32AM effo Batch: 00215.05.2022 Account Number Vendor Description GL Date Check No Amount PO No 213-46301-438100 CENTERPOINT ENERGY 6402832805-8 - 113 Broadway W (1/2 05/31/2022 0 127.24 213-46301-438100 CENTERPOINT ENERGY 11688591-4 - 121 Broadway W 05/31/2022 0 117.50 Vendor Subtotal for Dept:46301 244.74 213-46301-438100 XCEL ENERGY 51-13295413-8 - 103 Pine St 05/31/2022 0 45.73 213-46301-438100 XCEL ENERGY 51-13295413-8 - 113 W Broadway 41' 05/31/2022 0 146.83 Vendor Subtotal for Dept:46301 192.56 213-46301-443990 DEMVI LLC Parking Lot Maintenance - May 2022 05/31/2022 0 213.86 Vendor Subtotal for Dept:46301 213.86 Subtotal for Fund: 213 651.16 Report Total: 651.16 AP -Transactions by Account (06/01/2022 - 10:32 AM) Page 1 enterPoint Energy CenterPoi ntEnergy.com Gas leak or emergency Leave immediately, then call 800-296-9815, 24 hours a day How to pay your bill Online Visit: CenterPointEnergy.com/paybill Pay immediately, schedule a payment or set up automatic monthly payments. Please keep this portion for your records CenterPoint. Energy MONTICELLO EDA ATTN AP. 505 WALNUT ST STE 1 MONTICELLO, MN 55362-8822 Pago 1 of 4 CUSTOMER ACCOUNT NUMBER MONTICELLO EDA 6402832805-8 AUTOPAY DATE May 09, 2022 ATTN AP. BILLING DATE AMOUNT DUE $ 310.35 SERVICE ADDRESS Apr 11, 2022 113 Broadway St W, Monticello, MN 55362-9352 Customer service Call before you dig Comments 612-321-4939 or 800-245-2377 Call 811 PO Box 1144 Monday - Friday, 7 am - 7 pm 24 hours a day Minneapolis, MN 55440-1144 Our records show that you now receive a paperless bill. We hope you enjoy the ease and convenience of paperless bill delivery. The cost of gas line item reflects higher commodity prices due to increases in the market price of natural gas, and the price we pay for natural gas is the same price we charge our customers - with no markup. We expect the higher commodity costs through at least the summer months. However, changes in usage will affect the total amount billed from month to month. ACCOUNT SUMMARY Previous gas amount due Payment Apr 8, 2022 Thank you! $ 484.16 -484.16 Current gas charges (Details on page 2) +310.35 DO NOT PAY - Total amount due to be drafted $ 310.35 For energy saving tips, visit CenterPointEnergy.com/BusinessEnergyTips Phone Call 612-321-4939 and make a payment using your checking or savings account, or by debit or credit card. 00004110 1 0770197969163 000001 $127.24 EDA $183.11 - AR for billing In person To find a payment location, visit: CenterPointEnergy.com/paybill or call 612-321-4939. Mail w To mail a payment, send to: PO Box 4671 Houston, TX 77210-4671 ACCOUNT NUMBER 6402832805-8 Has your AutoPay bankAUTOPAY DATE May 09, 2022 account changed? See form on back of stub. AMOUNT DUE $ 310.35 Your bill is scheduled to be paid automatically by bank draft on the due date May 09, 2022. Your bank draft is set up for: 007200640283280583000000310350000003103560 CenterPoint Energy CenterPoi ntEnergy.com DEFINITIONS CUSTOMER MONTICELLO EDA ATTN AP. SERVICE ADDRESS 113 Broadway St W, Monticello, MN 55362-9352 Basic Charge is a flat amount each month, regardless of the amount of gas used, to cover a portion of costs incurred even if the customer does not use gas during the billing period. Cost of Gas is the cost CenterPoint Energy pays for the gas it delivers to its customers. Delivery Charge is based on the amount of gas delivered, to cover the costs of delivering gas not covered by the Basic Charge. City Franchise Fee is a fee charged by a city to utility companies that provide natural gas, electricity or cable service. Utilities will collect the fee from individual customers and pay it to the city. Utilities receive no revenue from this fee. Gas Affordability Program (GAP) covers costs to offer a low-income customer co -pay program to reduce natural gas service disconnections. This charge is billed to all non - interruptible customers. Purchased Gas Adjustment reflects the difference between the base cost of gas established at the time of our most recent rate case and the price paid to purchase and transport the gas you used during this billing period. Theme is the heating value of gas. Your meter measures CCF (hundreds of cubic feet) which we multiply by the therm factor to determine the heating capacity of the gas you used. For a more detailed description of each of the terms used on your bill, please visitCenterPointEnergy.com/definitionsorcai/ Customer Support at 612-321-4939. ACCOUNT NUMBER 6402832805-8 BILLING DATE Apr11,2022 AUTOPAY DATE AMOUNT DUE Page 2 of A May 09, 2022 $ 310.35 Current gas charges Rate: Com/Ind Firm Rate Meter Number Day Billing Period Current read date Next scheduled read date Next billing date M20131589322 29 Apr 7, 2022 May 9, 2022 May 10, 2022 Billing Period Current Reading - Previous Reading = Total x Therm factor = Adjusted Usage 03/09/22 - 04/07/22 9286 9000 286 1.04188 298 Therms Basic charge $ 21.00 Delivery charge 298 therms x $ 0.20580 61.33 Decoupling adjustment 298 therms x -$ 0.00424 -1.26 Gas Affordability PRG 298 therms x $ 0.00264 0.79 Feb 2021 Weather Event 298 therms x $ 0.04610 13.74 Cost of gas* 298 therms x $ 0.61688 183.83 Interim rate adjustment 9.60 (Basic Chg + ($0.19789*therms))*12.0000% County sales tax 1.45 State sales tax 19.87 Total current charges $ 310.35 *includes a purchased gas adjustment of $0.16101 Your account, managed your way • Pay automatically. Set up AutoPay by signing and • Other services. Report a payment made at a payment Sign up at CenterPointEnergy.com/myaccount returning the form below with your check payment. It's that location, set up a payment extension and much more. View • 2417 online account access. View and/or pay your bill, easy! options from your online account or visit view usage history, sign up for account services and much • Even out the highs and lows of your monthly bills. CenterPointEnergy.com/selfservice if you'd prefer not to more. Enroll in Average Monthly Billing and spread your natural register. • Go paperless. Receive an email when your bill is ready gas costs throughout the year. • Moving? Please call us at 612-3214939 at least two to view and pay. Get convenience, get rid of clutter. • Get bill reminders. Choose text or email, up to five weeks before you move, or complete the forms at days before your bill is due. CenterPointEnergy.com/selfservice Register any inquiry or complaint at CenterPoint Energy, 505 Nicollet Mall, PO Box 59038, Minneapolis, MN 55459-0038 Mail payments to CenterPoint Energy, PO Box 4671, Houston, TX 772104671 Late payment details/due date. Please pay your bill on time to reach our office by the due date shown at the top of your bill. Unpaid gas amounts over $10 are charged a late payment fee of 1.5% (18% annual percentage rate) or $1 minimum on the next billing date shown on your bill. Returned check charge. There will be a $10 charge for any check or AutoPay payment your bank returns to us. Notice of customer information availability. Customer information is available upon request. Call 800-245-2377. Personal checks sent for payment may be processed electronically. This means your check will not be returned by your financial institution. Any funds may be debited from your account as soon as the same day payment is received.lf you have questions concerning this process, please contact customer service at 800-245-2377. For further information, visit hftp://federaireserve.gov/pubs/checkconv/ 000002 Has your AutoPay bank account changed? To update your bank account information, please sign and date this form and return it with this month's payment, using one of your new checks. Money orders do not qualify for enrollment or updating. Your next bill will be automatically deducted from the account listed on your check. For more information or to update your banking information electronically, go to CenterPointEnergy. com/autopa y. I authorize CenterPoint Energy to automatically deduct from the checking account shown on my enclosed check all future payments for my CenterPoint Energy bills. I will notify CenterPoint Energy if I decide to cancel my use of AutoPay. CenterPoint Energy also has the right to discontinue my AutoPay enrollment. Once I enroll, I understand that any past due balances will be drafted from my account three days after my application is processed. Account holder's signature Page 1 of 4 CenterPoint- CUSTOMER ACCOUNT NUMBER CITY OF MONTICELLO 11688591_4 DATE DUE May 10, 2022 qw—Energy BILLING DATE AMOUNT DUE $ 117.50 SERVICE ADDRESS Apr 12, 2022 CenterPointEnergy. cum 121 Broadway St W, Monticello, MN 55362-9352 Gas leak or emergency Customer service Call before you dig Comments Leave immediately, then call 612-321-4939 or 800-245-2377 Call 811 PO Box 1144 800-296-9815, 24 hours a day Monday - Friday, 7 am - 7 pm 24 hours a day Minneapolis, MN 55440-1144 The cast of gas line item reflects higher commodity prices due to increases in the market price of natural gas, and the price we pay for natural gas is the same price we charge our customers - with no markup. We expect the higher commodity costs through at least the summer months. However, changes in usage will affect the total amount billed from month to month. Pay your next bill without lifting a finger. To enroll in AutoPay, just sign and date the back of your bill] stub and return to us with a check for your payment amount. It's that easy! ACCOUNT SUMMARY Previous gas amount due $ 0.00 Payment No payment received. -0.00 Current gas charges (Details on page 2) + 117.50 Total amount due $ 117.50 How to pay your bill ER Online ■ Visit: CenterPointEnergy.com/paybiliPay immediately, schedule a payment or set up automatic monthly payments. For energy saving tips, visit CenterPointEnergy.comlBusinessEnergyTips Phone tl Call 612-321 A939 and make a payment using your checking or savings account, or by debit or credit card Please keep this portion far your records Please return this portion wdh your payment. Please do not include letters Or notes. o-ce�►rerPoar. Energy N, 000001 00024385 01 AB 0.46 1 CITY OF MONTICELLO 505 WALNUT ST STE 1 MONTICELLO, MN 55362-8822 rrlllllrlll�`Il�llrlilll�'�Illlll�llilrllrl�llrlillrll1ll1'i' 1800195970183 In person To find a payment location, visit: CenterPointEnergy com/paybill or caR 612-321-4939. Mail Return the payment stub below, with your check or money order, using the return envelope. ACCOUNT NUMBER 11688591-4 Enroll in AutoPay (QATE DUE __ - May 10, 2022 today. See form on the back of this stub. AMOUNT DUE $117.501 Write a=untnumberon check and make payable to CenterPoiIN Energy. SJ4M Please enter amount of your payrienl ilellllrlr�llllllrllillll�rii I'll'llrr'I'�III��I'lll�'I��II�I'I� CFNTERPOINT ENERGY PO BOX 4671 HOUSTON TX 77210-4671 0072000011688591460000001175000000011,75000 CUSTOMER CITY OF MONTICELLO SERVICE ADDRESS 121 Broadway St W, Monticello, MN 55362-9352 — DEFINITIONS Basis Charge is a flat amount each month, regardless of the amount of gas used, to cover a portion of costs incurred even if the customer does not use gas during the bilfing period. Cost of Gas s the cost CenterPoint Energy pays for the gas it delivers to its customers. Defivery Charge is based on the amount of gas delivered, to cover the costs of delivering gas not covered by the Basic Charge. City franchise Fee is a fee charged by a city to utility companies that provide natural gas, electricity or cable service. Utilities will collect the fee from individual customers and pay it to the city. Util'++ties receive no revenue from this fee. Gas Affordability Program (GAP) covers costs to offer a low-income customer co -pay program to reduce natural gas service disconnections. This charge is billed to all non - interruptible customers, Purchased Gas Adjustment reflects the difference between the base cost of gas established at the time of our most recent rate case and the price paid to purchase and transport the gas you used during this bltling period. Therm is the heating value of gas. Your meter measures CCF (hundreds of cubic feet) which we multiply by the therm factor to delermine the heating capacity of the gas you used. For a more detailed description et each of the terms used on your bill, please visit CenterPointEnergy.comldettniHons or calf Customer Support at 512-321-4939. 000002 Current gas charges Meter Number Day Bitting Period M19630001922 6 ACCOUNT NUMBER DATE DUE 11688591-4 BiLL.INC, DATE AMOUNT DUE Apr 12, 2022 Page 2 of 4 May 10, 2022 $ 117.50 Current read date Next scheduled read date Apr 7, 2022 May 9, 2022 Rate: Comflnd Firm Rate Next billing date May 10, 2022 Billing Period Current Reading - 04102122 - 04107/22 749 Previous Reading = Total x Therm factor 643 106 1.04181 Adjusted juSted Usage 110 Therms Basic charge $ 4.14 Delivery charge 110 therms x $ 0.20580 22.64 Decoupling adjustment 110 therms x -$ 0.00424 -0.47 Gas Affordability PRG 110 therms x $ 0.00264 0.29 Feb 2021 Weather Event 110 therms x $ 0.04610 5.07 Cost of gas* 110 therms x $ 0.67864 74.65 Interim rate adjustment bluing date shown on your bili. 3.11 (Basic Chg + ($0.19789`1herms))*32.0000% I authorize CenterPoint Energy to automatically deduct from the checking account shown on my enclosed check all check or AutoPay payment your bank returns to us County sales tax Notice of customer information availability, Customer 0.55 State sales tax balances will be drafted from my account three days after my application is processed. 7.52 Total current charges $117.50 *includes a purchased gas adjustment of $0.22283 Your account, managed your way • Pay automatically. Set up AutoPay by signing and • Other services. Report a payment made at a payment Sign up at CenterPoinfFnergy.comlmyaccount returning the term below with your check payment It's that location, set up a payment extension and much more. View easy! options from your online account or visit • 2417 online account access. View and/orpa your bill, y view usage history, sign up for account services and much • Even out the highs and lows of our month! bills. CenterPointEnergy.com/selfservice if you'd prefer not to g y y Enroll in Average Monthly Billing and spread your natural register. more. • Go paperless. Receive an email when your bill is ready gas costs throughout the year. • Moving? Please call us at 612-321-4939 at least two • Get bill reminders. Choose text or email, up to five weeks before you move, or complete the forms at to view and pay. Get convenience, et rid of clutter. P y 9 days before your hili is due. CenterPoinfEnergy.com/selfservice Register any inquiry or complaint at CenterPoint Energy, 505 Nicolle! Mall, PO Box 59036, Minneapolis, MN 55459-0038 Mail payments to CenterPoint Energy. PO Box 4671. Houston, TX 77210-4671 Enroll in AutoPay and your monthly payment will be automatically deducted from your bank account. Late payment detailsldue date. Please pay your bill on time to reach our office by the due date shown at the top of your bili. Unpaid gas amounts over $10 are charged a tale payment fee of To enroll, sign and date this form and return with your check payment. Money orders de not qualify for enrollment. 1.5% (181/6 annual percentage rate) or 51 minimum on the next Your next bill will be automatically deducted from the account listed on your check. For more information and to enroll bluing date shown on your bili. electronically, go to CenterPomfEnergy.com/Wtopay. Returned check charge. There will be a $10 charge for any I authorize CenterPoint Energy to automatically deduct from the checking account shown on my enclosed check all check or AutoPay payment your bank returns to us future payments for my CenterPoint Energy bills. I will notify CenterPoint Energy if t decide to cancel my use of AutoPay. Notice of customer information availability, Customer CenterPoint Energy also has the right to discontinue my AutoPay enrollment. Once I enroll, I understand that any past due information is available upon request Call 800-245-2377, balances will be drafted from my account three days after my application is processed. Personal checks sent for payment may be processed electronically. This means your check will not be retumed by your financial institution. Any funds may be debited from your account as soon as the same day payment is received.lf you have questions concerning this process, please contact customer service at 600-245-2371. For further information, visit hdp-1/federaireserve.gov/pubslcheckconvf Account holders signature Date Xcel Energy RESPONSIBLE BY NATUREC QUESTIONS ABOUT YOUR BILL? See our website: xcelenergy.com Email us at: Customerservice@xcelenergy.com Please Call: 1-800-481-4700 Hearing Impaired: 1-800-895-4949 Fax: 1-800-311-0050 Or write us at: XCEL ENERGY DESCRIPTION PO BOX 8 Service Quality Credit EAU CLAIRE WI 54702-0008 PREMISES SUMMARY NORTHERN STATES POWER COMPANY Page 1 of 12 MAILING ADDRESS ACCOUNT NUMBER Payment Received Auto Pay 04/04 CITY MONTICELLO ECONOMIC DEV AUTH WALNUT ST STE 1MONTICELLO MN 55362-8831 51-0013295413-8 $0.00 STATEMENTNUMBER STATEMENTDATE775051452 ;05/050/202;2505 -$0.38 CR 04/08/20229.12 $490.12 ACCOUNT BALANCE (Balance de su cuenta) Previous Balance As of 03/07 $603.10 Payment Received Auto Pay 04/04 -$603.10 CR Balance Forward $0.00 Current Charges $490.50 Non -Recurring Charges / Credits -$0.38 CR Amount Due (CanSdad a pagar) $490.12 PREMISES NUMBER PREMISES IDENTIFIER PREMISES DESCRIPTOR CURRENT BILL 302923602 103 PINE ST EDA $45.73 303140734 113 W BROADWAY ST 59% AR 41 % EDA $358.11 303409149 112 W RIVER ST Pw Split $86.66 Total $490.50 NON-RECURRING CHARGES/CREDITS SUMMARY DESCRIPTION CURRENT BILL Service Quality Credit -$0.38 CR Total -$0.38 CR INFORMATION ABOUT YOUR BILL This month the Resource Adjustment has increased due to changes in the Renewable 9 Energy Standard (RES) Rider, which recovers our investments and expenses to add renewable energy systems to our generation resources. The RES Rider portion of the Resource Adjustment is 9.765% of the basic service charge, energy charge, and 16 demand charge on your bill. ------ manifest line --------- RETURN BOTTOM PORTION WITH YOUR PAYMENT • PLEASE DO NOT USE STAPLES, TAPE OR PAPER CLIPS Xcel Fnsrgy ACCOUNT NUMBER DUE DATE JJ111110111111 7 11 1 r r 51-0013295413-8 05/05/2022 $490.12 Automated Bank Payment MAY Yourbillispaidthroughanautomated bank payment plan. 1 2 3 4 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 ------ manifest line --------- 22 23 24 25 26 27 28 1"11111"1'1'1'11'11111111111'11��111�1��11�111�1�1'111111'I I I' 29 30 31 CITY MONTICELLO ECONOMIC DEV AUTH 505 WALNUT ST STE 1 MONTICELLO MN 55362-8831 1"I(III"�'I'�'�I'1111111(II(I'11��111�1��11�111�1�1'I�IIII'I��' XCEL ENERGY P.O. BOX 9477 MPLS MN 55484-9477 32 51050522 00132954138 0000004901200000049012 0 Xcel Energy INFORMATION ABOUT YOUR BILL Page 2 of 12 MAILING ADDRESS ACCOUNT NUMBER I I CITY MONTICELLO ECONOMIC 0 E AUTH 505 WALNUT ST STE 1 MONTICELLO MN 55362-8831 51-0013295413-8;$490.1;2 /05/2 STATEMENT NUMBER STATEMENT DATE 775051452 04/08/2022 Renewable energy development costs are included as part of the Resource Adjustment line on your bill. Beginning this month, the renewable energy development costs have decreased from $0-001212 per kWh to $0.000902 per kWh. Visit xcelenergy.comlydf to find mare on XceI Energy's renewable energy development programs. Thank you for your payment. F SAVE ON HIGH -EFFICIENCY FANS 1000, � AND FAN SYSTEMS J Rebates are now available for fan systems that are Fan Energy Index or FEI rated. Rebates range from $120 to $9,100, depending - on horsepower and if the system is integrated with a VFD. The savings can help offset your energy improvement project costs. ' Contact your account manager or one of our energy advisors at EnergyEfficiency@xcelenergy.com or call 855-839-8852. �& Xcel Energym Fl l -w 3 0 1� MAILING ADDRESS ACCOUNT NUMBER METER 3632365 - Multiplier x 40 CITY MONTICELLO ECONOMIC I)EV AUTH 505 WALNUT ST STE i MONTICELLO MN 55362-8831 51-0013295413-8 5/2022 STATEMENT NUMBER STATEMENT DATE r ;$490.12 175051452 04/08/2022 0 kW SERVICE ADDRESS: 103 PINE 5T MONTICELLO, MN 55362-8564 NEXT READ DATE: 05/06/22 ELECTRICITY SERVICE DETAILS PREMISES NUMBER: 302923602 INVOICE NUMBER, 0960050531 METER READINGINFORMATION RATE: Sm Gen Svc (Metered) METER 3632365 - Multiplier x 40 Head Oates: 03107222.04105122129 Days) DESCRIPTION CURRENT READING MEASURED BILLED PREVIOUS READING USAGE USAGE Total Energy 21446 Actual 21443 Actual 3 120 kWh Demand Actual 0.4 kW 9iilaUie Remand 0 kW ELECTRICITY CHARGES RATE: Sm Gen Svc (Metered) Temperature DESCRIPTION USAGE UNITS RATE CHARGE Basic Service Chg $10.00 Energy Charge Winter 120 kWh $0.077570 $9.31 Fuel Cost Charge 120 kWh $0.033083 $3.97 Sales True Up 99.31 kWh $0.008510 $0.85 Sales True Up 20.69 kWh $0.005860 $0,12 Affordability Chrg $1.27 Resource Adjustment $2,08 Interim Rate Adj $2.61 Subtotal $30.21 City Fees $550 Total $35.71 OTHER RECURRING CHARGES DETAILS INVOICE NUMBER: 960050507 ADDRESS: 103 PINE ST MONTICELLO, MN 55:36243564 UNIT DESCRIPTION USAGE UNITS CHARGE QTY CHARGE Install Number 157123 03/07/22 to 04/04/22 100 WATT HPS AREA CO OWN Auto Protective Lgt Fuel Cast Charge Resource Adjustment Interim Rate Adj Total Premises Total DAILY AVERAGES Last Year Temperature 400 r Electricity kWh 4.1 Electricity Cost $1.06 39 kWh $7.41 1 $7.41 $1.00 $0,61 $1.00 S10.02 S45.73 N 5 M Xcel Energy° INFORMATION ABOUT YOUR BILL PT 9e 4 of 11 MAILING ADDRESS ACCOUNT NUMBER 11411-111. CITY MONTICELLO ECONOMIC 0 E Al1TH 505 WALNUT 5T 5TE T MONTICELLO MN 55362-8831 51-0013295413-805/05/2022 STATEMENT NUMBER STATEMENT GATE 775051452 04/08/2022 $490.12 Your bill includes a surcharge of $0.00586 per kWh as a result of a rate adjustment for the differences between 2021 forecast and actual sales. The surcharge begins April 1, 2022 and will be effective far 12 months. See the enclosed notice for details. Fora n average non -demand customer, 68'0 of your bill refers to power plant costs, 15% to high voltage line tests, and 17% to the cost of local wires connected to your business. Foran average demand -billed customer, 781/o of your total bill refers to power plant costs, 14% to high voltage lines, and 8% to the cost of local wires connected to your business. DON'T GET SCAMMED. Seammers can spoof phone numbers to look like the call is coming from us. If someone calls and threatens to turn off your power if you don't pay immediately, or asks for your account number to refund an overpayment, hang up and check your account status using My Account, our Xcel Energy mobile app, or call us at 800-895-4999. a �& Xcel Energym DAILY AVERAGES Last Year Temperature 40` F Electricity kWh 0.6 Electricity Cest $0.00 pari-• 5 of 12 MAILING ADDRESS ACCOUNT NUMBER 1 CITY MONTICELLD ECONOMIC 0EV RUTH 505 WALNUT ST 5TE I MONTICELLO MN 55362-8831 51-0013295413-8 05/05/2022 STATEMENT NUMBER STATEMENT DATE 775051452 I 04�fl8�2022 $490.12 SERVICE ADDRESS: 113 W BROADWAY ST MONTICELLO, MN 55352-9352 NEXT READ DATE: 051?1b122 ELECTRICITY SERVICE DETAILS PREMISES HUMBER: 343140734 INVOICE NUMBER: 0950045650 METER READING i METER 7633803 Read Dates: 03/06/22 - 04704722129 NO DESCRIPTION CURRENT READING PREVIOUS READING USAGE Total Energy 23557 Actual 21392 Actual 2165 kWh Demand Actual 7.166 kW Billable Demand 8 kW ELECTRICITY CHARGES RATE: General Service DESCRIPTION USAGE UNITS RATE CHARGE Basic Service Chg $25.64 Energy Charge 2165 kWh $0.034070 $73.76 Fuel Cost Charge 2165 kWh $0,032046 $69.38 Sales True Up 1866.36 kWh $0.008780 $16.39 Sales True Up 298.62 kWh $0.003640 $1.09 Demand Charge Winter 8 kW $10.490000 $83.92 Affordability Chrg $3.60 Resource Adjustment $28.54 Interim Rate Adj $24.79 Subtotal $327.11 City Fees $31.00 Tota 1 $350.11 Premises Total $350.11 INFORMATION ABOUT YOUR BILL Your hill includes a surcharge of $0.00364 per kWh as a result of a rate adjustment for the differences between 2021 forecast and actual sales. The surcharge begins April 1, 2022 and will be effective for 21 months. See the enclosed notice for details. O Foran average non -demand customer, 68% of your bill refers to power plant costs, 15°la to high voltage line costs, and 17% to the cost of local wires connected to your business. For an average demand -billed customer, 78% of yourtotal bill refers to power plant costs, 14% to high voltage lines, and 8% to the cost of local wires connected to your business. Q W �& Xcel Energym DAILY AVERAGES Last Year Temperature 40` F Electricity kWh 1.7 Electricity Cost $2.59 MAILING ADDRESS ACCOUNT NUMBER CITY MONTICELLD ECONOMIC DEV AUTH 505 WALNUT ST 5TE I MONTICELLO MN 55362-8831 51-0013295413-8 2 STATEMENT NUMBER STATEMENT DATE775051452 ;$;49012 Actual 1.97 kW 04/08/2022 1 kW SERVICE ADDRESS: 112 W RIVER ST MUNTICEL.LU, MN 55362-8766 NEXT READ DATE: 05/06/22 ELECTRICITY SERVICE DETAILS PREMISES HUMBER: 343409149 INVOICE NUMBER: 0950051835 METER READING INFORMATION USAGE UNITS METER 15/62258 Read Dates: 63/17/27 - 04/05/22 [29 Daysl DESCRIPTION CURRENT READING PREVIOUS READING USAGE Total Energy 69867 Actual 69774 Actual 93 kWh Demand Actual 1.97 kW Billable Dernand 1 kW ELECTRICITY CHARGES MATE: General Service DESCRIPTION USAGE UNITS RATE CHARGE Basic Service Chg $25.64 Energy Charge 93 kWh $0.034070 $3.17 Fuel Cost Charge 93 kWh $0,032043 $2.98 Sales True Up 76.97 kWh $0.008780 $0.68 Sales True Up 16.03 kWh $0.003640 $0.06 Demand Charge Winter 1 kW $10.490000 $10.49 Affordability Chrg $3.60 Resource Adjustment $3.72 Interim Rate Adj $5.32 Subtotal $55.66 City Fees $31.00 Tota 1 $86.66 Premises Total $86.66 INFORMATION ABOUT YOUR BILL ,; , Your hill includes a surcharge of $0.00364 per kWh as a result of a rate adjustment for the differences between 2021 forecast and actual sales. The surcharge begins April 1. 2022 and will be effective for 21 months. See the enclosed notice for details. Foran average non -demand customer, 68% of your bill refers to power plant costs, 15°la to high voltage line costs, and 17% to the cost of local wires connected to your business. For an average demand -billed customer, 78% of yourtotal bill refers to power plant costs, 14% to high voltage lines, and 8% to the cost of local wires connected to your business. MAILING ADDRESS ACCOUNT HUMBER �ry �^ CITY MONTICELLD ECONOMIC 0 E AUTH 51-0013295413-8 ;$490.12 /05/2022 Xcel E e gy 505 WALNUT ST STE i MONTICELLO MN 55382-8831 STATEMENT NUMBER STATEMENT,DATE� � 175051452 04�fl8�2022 NON-RECURRING CHARGES 1 CREDITS RETAILS DESCRIPTION CHARGE Service Quality Credit - $0.38 CR Total - S0.38 CR INFORMATI0N ABOUT YOUR BILL This hill includes a credit for underperformance as part of our Service Quality Tariff- The credit is shown on your bill as "Service Quality Credit." W �7 Xcel Energy SAVE ON HIGH -EFFICIENCY COOLING UPGRADES T.�y'yI1I LY If your business is using an older cooling system. it cculd be Inefficient N and expensive to maintain. When you're ready to make energy efficiency N improvements, consider a high -efficiency cooling upgrade_ Whether you'd Like to replace a chiller, rooftop unit, or packaged terminal air -conditioner, you can earn cash back with our rebates to lower your up -front costs. Contact our energy advisors at 855-839-8862 or visit xcelenergy.corn FHVACR to learn more. cp M N M O O ISJ )"@nergv.wm I P 2022 Xcel Energy mc. ; Xcel Ener, is a 1 aueta%d trademark- of Kcv E:wrgy Inc 10422GN07 0 Xcel Energy VFDs CAN HELP DRIVE SAVINGS 0 01 1 Variable frequency drives (VFf)s) are used across industries to increase the efficiency of HVAC and motor -driven systems, including fans and pumps. N If you're looking for ways to save money and reduce energy use, consider adding VFOs and earn rebates from 5400 to $8,000 per unit. depending on horsepower. Learn more at xcelenergy.rom/HVAC#t. op M N M O O ISJ rgl9n9rgy.c7n I P� 2022 xoei Energy Inc I xool Enar94 �, a OU13WBre9 trademark at Xcel Energy Inc. 104220N, a Julie Cheney L)(,;- MV l From: Bullseye Property Management & Realty <mail@managebuiIding.com> Sent: Wednesday, May 25, 2022 2:13 AM To: AP Subject: Payment confirmed: For Broadway Parking Easement - COMMERCIAL - 2 on 5/25/2022 Thank you for your payment Dear City of Monticello, Thank you for your payment in the amount of $213.86 on 5/25/2022. Subject to your bank's schedule for electronic fund transfers, your checking/savings account will be debited within one (1) business day. If you have any questions about your payment please contact us. Sincerely, Bullseye Property Management & Realty 763-295-6566 Buildium@buliseye411.com Current statement for Broadway Parking Easement - COMMERCIAL - 2 Date Note Amount Balance 3/1/2022 Common Area Maintenance $198.02 $198.02 3/7/2022 Payment ($198.02) $0.00 4/1/2022 Common Area Maintenance $213.86 $213.86 4/7/2022 Payment ($213.86) $0.00 4/26/2022 Payment ($198.02) ($198.02) 4/26/2022 by City of Monticello Economic Development Authority ($15.84) ($213.86) 5/1/2022 Common Area Maintenance $213.86 $0,00 5/25/2022 by City of Monticello Economic Development Authority ($213.86) ($213.86) 6/1/2022 Common Area Maintenance $213.86 $0.00 To access your account, visit http//bullseyeyrooerties.manaaebuilding.com 3.41n3c�1. 41-3 5,-,) o I Payment Receipt Bulls ye Property Management Bullseye 'Realty 35 Lake Street S, Suite 500 Realty •Leasing Propertyeement Big Lake, MN 55309 Leasing - Sales (763) 295-6566 Account No. 405914 Broadway Parking Easement - COMMERCIAL - 2 Received from: City of Monticello Economic Development Authority 505 Walnut Street Suite 1 Monticello, MN 55362 Memo by City of Monticello Economic Development Authority Date Amount Received 5/25/2022 $213.86 Payment Method EFT Generated 05/26/2022 13:09:30 Page 1 of 1 EDA Agenda: 06/08/22 4d. Consideration of Adopting Resolution No. 2022-12 Modifying TIF District No. 1-22 for Parcel Removals Related to a Proposed new Redevelopment TIF District in Block 52 (JT) A. REFERENCE AND BACKGROUND: The EDA is being asked to adopt Resolution No. 2022-12 approving the removal of parcels from Tax Increment Financing District No. 1-22 within Central Monticello Redevelopment Project No. 1 for administrative purposes. The removal of the parcels is required to allow the proposed establishment of Redevelopment TIF District 1-45 in Block 52 in support of Deephaven Development's vertical mixed use development proposal. Land parcels cannot be in more than one TIF District. The three parcels identified in the Resolution were originally included in TIF District 1-22 many years ago when the TIF District was formed as a Redevelopment District. It is reasonable to assume that there may have been a redevelopment proposal involving those three parcels or as part of a larger downtown redevelopment which ultimately never came to fruition. The three land parcels to be removed from TIF District 1-22 are: 155-010-052010 155-010-052060 155-010-052110 It has been confirmed that no other parcel included within the proposed redevelopment area are currently within TIF 1-22. The following are the related impacts to TIF District 1-22. • The only modification proposed to TIF 1-22 is elimination of parcels from the district. • The modification to the boundaries of TIF1- 22 will not change the classification of the district. TIF 1-22 will remain classified as a redevelopment district. The findings related to classification of the district contained in the original TIF Plan can be reaffirmed with the elimination of the 3 parcels. o At the time of establishment of TIF 1-22 (TIF Plan, adopted March 10, 1997), the city concluded that more than 70% of the area in the district was occupied by buildings, streets, utilities, or other improvements and more than 50% of the buildings, not including outbuildings, were structurally substandard to a degree requiring substantial renovation or clearance. The anticipated decertification date of TIF 1-22 is December 31, 2023. The decertification is anticipated to occur one year earlier than the required decertification date of December 31, 2024. The final maturity date of the one remaining obligation (pay -go TIF note) payable from tax increment from TIF 1-22 is February 1, 2023. • There is a slight possibility that due to proposed legislation related to the TIF statute, which if passed and signed into law, would require TIF 1-22 to be decertified at the end of 2022 rather than 2023. Staff will continue to monitor this legislation and take appropriate action. Al. Staff Impact: There is a moderate staff impact in presenting the Resolution to the EDA modifying TIF District No. 1-22 removing parcels from the District. Staff involved in the tasks related to this effort included the EDA attorney, the Northland Securities financial advisor, Community Development Director, the City Finance Director, and the Economic Development Manager. No additional staff are needed to complete this process. A2. Budget Impact: There is modest budgetary impact related to EDA consideration of adopting the resolution removing parcels from TIF District No. 1-22. The EDA attorney legal fees are estimated to be in a range of $450 to $550 for the tasks related to this effort. The Northland Securities charges are included in the service contract fee total ($10,535/February 23, 2022) related to establishing TIF District No. 1-45. B. ALTERNATIVE ACTIONS: 1. Motion to adopt Resolution No. 2022-12 removing parcels from TIF District No. 1- 22 within Central Monticello Redevelopment Project No. 1 in Block 52 for administrative purposes related establishing a new Redevelopment TIF District in support Deephaven Development's proposed vertical mixed use development proposal. 2. Motion to table adoption of Resolution No. 2022-12 for further research and/or discussion. C. STAFF RECOMMENDATION: Staff recommends approval of Resolution No. 2022-12 removing parcels from TIF District No. 1-22. This is a required action prior to the EDA's upcoming consideration of approving establishment of Redevelopment TIF District No. 1-45 in support of Deephaven Development's vertical mixed use residential -commercial development proposal in Block 52. D. SUPPORTING DATA: A. Resolution No. 2022-12 Removing Parcels from TIF District No. 1-22 B. TIF Model -Run - Duffy 59 -Unit MF Proposal CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2022-12 RESOLUTION APPROVING A MODIFICATION TO THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 1-22 WHEREAS, the City of Monticello (the "City") and the Housing and Redevelopment Authority in and for the City of Monticello (the "HRA") previously established the Central Monticello Redevelopment Project Area No. 1 (the "Redevelopment Project") pursuant to Minnesota Statutes, Sections 469.001 through 469.047, as amended (the "HRA Act"); and WHEREAS, on March 10, 1997, the City and the HRA approved a Tax Increment Financing Plan (the "TIF Plan") for Tax Increment Financing District No. 1-22 (the "TIF District") located within the Redevelopment Project, pursuant to the HRA Act and Minnesota Statutes, Sections 469.174 to 469.1794, as amended (collectively, the "Act"); and WHEREAS, administration of the TIF District was subsequently transferred to the City of Monticello Economic Development Authority (the "Authority"); and WHEREAS, the following properties, by property identification number, were included in the TIF District: 155-010-052010 155-010-052060 155-010-052110 WHEREAS, the Authority desires by this resolution to approve a modification to the TIF Plan (the "Modification") to remove the above-described parcels (the "Removed Parcels") from the TIF District, thereby reducing the size of the TIF District; and WHEREAS, because the current net tax capacity of the Removed Parcels equals or exceeds the net tax capacity of Removed Parcels in the TIF District's original net tax capacity, the Modification does not require notice, discussion, a public hearing, or original plan approval findings pursuant to Section 469.175, subd. 4(e)(2)(A) of the Act; and NOW THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Authority that the Modification is hereby approved. Authority staff is authorized and directed to notify the Wright County auditor of the reduction of the size of the TIF District pursuant to Section 469.175, subd. 4(e) of the Act. Approved by the Board of Commissioners of the City of Monticello Economic Development Authority this 8h of June, 2022. MN190\159\796487.v1 President Attest: Secretary MN190\159\796487.v1 City of Monticello Tax Increment Financing District No. 1-42 (Housing) Duffy Development Projected Tax Increment Cash Flow Apartment Building, 59 Units TIF District Year Taxes Payable Year Taxable Market Value $ (TMV) Net Tax Capacity Less Original Net Tax Capacity 4 Captured Net Tax Capacity 3 Original Tax Rate z Available TIF Present Value of Available TIF TIF Retained by City PV of TIF s to City TIF to Developer PV of Net Available TIF 5,' 1 2024 11,800,000 80,830 (18,219) 62,611 95.95% 59,859 55,669 5,986 5,567 53,873 50,102 2 2025 11,859,000 80,849 (18,219) 62,630 95.95% 59,877 109,193 5,988 10,919 53,889 98,273 3 2026 11,918,295 80,868 (18,219) 62,650 95.95% 59,896 160,654 5,990 16,065 53,906 144,589 4 2027 11,977,886 80,888 (18,219) 62,669 95.95% 59,914 210,132 5,991 21,013 53,922 189,119 5 2028 12,037,776 80,907 (18,219) 62,688 95.95% 59,932 257,704 5,993 25,770 53,939 231,933 6 2029 12,097,965 80,927 (18,219) 62,708 95.95% 59,951 303,442 5,995 30,344 53,956 273,098 7 2030 12,158,455 80,946 (18,219) 62,728 95.95% 59,970 347,419 5,997 34,742 53,973 312,677 8 2031 12,219,247 80,966 (18,219) 62,747 95.95% 59,988 389,701 5,999 38,970 53,989 350,731 9 2032 12,280,343 80,986 (18,219) 62,767 95.95% 60,008 430,354 6,001 43,035 54,007 387,318 10 2033 12,341,745 81,006 (18,219) 62,787 95.95% 60,027 469,441 6,003 46,944 54,024 422,497 11 2034 12,403,454 81,026 (18,219) 62,807 95.95% 60,046 507,022 6,005 50,702 54,041 456,320 12 2035 12,465,471 81,046 (18,219) 62,827 95.95% 60,065 543,155 6,006 54,316 54,058 488,839 13 2036 12,527,798 81,067 (18,219) 62,848 95.95% 60,085 577,896 6,008 57,790 54,076 520,107 14 2037 12,590,437 81,087 (18,219) 62,868 95.95% 60,104 611,299 6,010 61,130 54,093 550,169 15 2038 12,653,389 81,107 (18,219) 62,888 95.95% 60,124 643,416 6,012 64,342 54,111 579,074 16 2039 12,716,656 81,128 (18,219) 62,909 95.95% 60,144 674,296 6,014 67,430 54,129 606,866 17 2040 12,780,240 81,149 (18,219) 62,930 95.95% 60,163 703,985 6,016 70,399 54,146 633,587 18 2041 12,844,141 81,169 (18,219) 62,950 95.95% 60,183 732,532 6,018 73,253 54,164 659,279 19 2042 12,908,361 81,190 (18,219) 62,971 95.95% 60,202 759,979 6,020 75,998 54,182 683,981 20 2043 12,972,903 81,211 (18,219) 62,992 95.95% 60,222 786,369 6,022 78,637 54,200 707,732 21 2044 13,037,768 81,232 (18,219) 63,013 95.95% 60,243 811,743 6,024 81,174 54,219 730,569 22 2045 13,102,957 81,253 (18,219) 63,035 95.95% 60,263 836,140 6,026 83,614 54,237 752,526 23 2046 13,168,471 81,275 (18,219) 63,056 95.95% 60,283 859,597 6,028 85,960 54,255 773,637 24 2047 13,234,314 81,296 (18,219) 63,077 95.95% 60,304 882,151 6,030 88,215 54,274 793,936 25 2048 13,300,485 81,318 (18,219) 63,099 95.95% 60,325 903,837 6,033 90,384 54,293 813,453 26 2049 13,366,988 81,339 (18,219) 63,120 95.95% 60,345 924,688 6,034 92,469 54,310 832,219 1,562,524 924,688 156,252 92,469 1,406,271 832,219 TOTAL = Key Assumptions for Cash Flow: 1 Taxable market value (TMV) annual growth assumption = 0.50% 2 Original Tax Rate estimated based on Taxes Payable Year 2021. 3 Election for captured tax capacity is 100.0% 4 Original Net Tax Capacity is calculated based on a TMV = $2,429,184, NTC calculated for Apartment 4d classification. 5 Present value is calculated based on semi-annual payments, 4.0% rate, and date of 1/1/2023. 6 Present value amount of the net available TIF is equal to the estimated maximum developer costs to be reimbursed from TIF. 7 Available TIF is after deducting State Auditor Fee of 0.36°/x. 8 59 units apartment building all units rented to person at or below 50% AMI, rent restrictions assumed providing for 4d classification of all units. 5/31/2021 NORTHLAND '14.4�i PUBLIC FINANCE Page 1 of 1 EDA Agenda: 06/08/22 4e. Consideration of Adopting Resolution #2022-13 approving a modification of TIF Plan budget for TIF District No. 1-42 to reflect updated land valuation per completed appraisal report 5 (JT) A. REFERENCE AND BACKGROUND: The EDA is asked to consider adopting Resolution #2022-13 approving a modification of the TIF Plan for TIF District No. 1-42 revising the sources and uses budget to reflect accurate land valuation as per a completed appraisal report. The EDA is being asked to modify the TIF Plan for TIF District No. 1-42 to reflect the land valuation of $180,697 as determined in a completed appraisal report. As you will recall, TIF 1-42 was recently established by the City Council as an Affordable Housing TIF District in support of Headwaters Development's multi -family senior (age 55 +) apartment proposal. The City Council held the public hearing and authorized establishing the TIF District on February 14, 2022. The EDA took similar action approving the TIF District at its meeting on February 23, 2022. Headwaters Development has proposed its 102 -unit apartment development at an EDA owned, 16.71 -acre parcel along 7th Street West. To guide appropriate land sale discussions with Headwaters Development, the EDA attorney recommended that a land appraisal be completed. The EDA then contracted with a real estate appraiser, Nagell Appraisal, Incorporated, Plymouth, MN, to complete a valuation report. The vacant land appraisal report was finalized and provided to the EDA in late February 2022, too late to be used in the original TIF Plan approved by the City and the EDA. The original TIF Plan budget used an estimate of the land value, $384,760. Since the completed appraisal report contained a land value with a significant variance from the original estimate, a TIF Plan budget modification is required to present a more accurate summary of the sources and uses of funds. The budget modification does not alter the TIF Plan activities, increment projections nor impact the developer nor alter the proposed development in any manner. A summary of the proposed budget modification is included as Exhibit B. (Attachment 1). To be clear, the EDA will be compensated for the full market value of the land. The total payment to the EDA will be $180,697, plus interest at a rate of 3.0 percent for a portion of the total payment amount. The EDA acted recently adopting a plan to transfer pooled increment from existing Affordable Housing TIF Districts into TIF 1-42 and TIF 1-43 allowing an immediate reimbursement for a portion (approximately 82.47 percent) of the land from increment transferred into the TIF District. Al. STAFF IMPACT: The staff workload related to processing the approval of the proposed TIF Plan budget modification is minimal. The EDA attorney and Northland Securities staff as EDA Agenda: 06/08/22 well as the Economic Development manager and Community Development Director have time allocated to the budget modification process. A2. BUDGET IMPACT: The budget impact from the TIF Plan budget modification is modest. The incurred legal costs will be covered through the developer funded TIF Escrow account. B. ALTERNATIVE ACTIONS: 1. Motion to adopt Resolution 2022-13 approving a modification of the TIF Plan for TIF District No. 1-42 revising the sources and uses budget to reflect accurate land valuation as per a completed appraisal report. 2. Motion to table consideration of Resolution #2022-13 for further research and/or discussion. C. STAFF RECOMMENDATION: City staff recommends adoption of Resolution 2022-13 approving the TIF Plan budget modification. The budget modification is required because the variance in the land valuation in the appraisal report versus the estimated amount in the original TIF Plan exceeded the allowed adjustment threshold. The TIF Plan budget modification is solely limited to the "sources and uses" component of the TIF Pan and does not impact the Plan activities nor the developer or its proposal in any other manner. SUPPORTING DATA: a. Resolution No. 2022-13 b. Attachment 1— Sources and Uses of Funds Budget Modification TIF Plan 1-42 c. Summary Budget Modification TIF District No. 1-42 and TIF District No.1-43 2 CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2022-13 RESOLUTION APPROVING A MODIFICATION OF THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 1-42 WHEREAS, on February 23, 2022, the City of Monticello Economic Development Authority (the "Authority") approved a Tax Increment Financing Plan (the "TIF Plan") for Tax Increment Financing District No. 1-42 (Headwaters Apartment Project) (the "TIF District') located within the Central Monticello Redevelopment Project Area No. 1 (the "Redevelopment Project'), pursuant to Minnesota Statutes, Minnesota Statutes, Sections 469.001 to 469.047, Sections 469.090 to 469.1081, as amended, and Sections 469.174 to 469.1794, as amended (collectively, the "Act'), and on February 14, 2022, the City of Monticello, Minnesota (the "City") approved the establishment of the TIF District; and WHEREAS, the City and Authority have determined a need to modify the TIF Plan in order to amend the budget contained therein as reflected in that certain document provided in Exhibit A attached hereto and labeled "Modification of the Tax Increment Financing Plan for Tax Increment Financing District No. 1-42 within the Central Monticello Redevelopment Project No. 1" (the "Amendment'); and WHEREAS, the Amendment is consistent with the redevelopment plan for the Redevelopment Project; and WHEREAS, pursuant to Section 469.175, subd. 4(b) of the Act, a tax increment financing plan may be modified without public hearing or the findings required to be made for the original tax increment financing plan if the modification does not include (i) any reduction or enlargement of the geographic area of the project or tax increment financing district; (ii) an increase in the amount of bonded indebtedness; (iii) a determination to capitalize interest on debt if that determination was not a part of the original plan; (iv) an increase in the portion of the captured net tax capacity to be retained by the City; (v) an increase in the estimated cost of the project, including administrative expenses, to be paid or financed with tax increment from the district; or (vi) the designation of additional property to be acquired by the authority; and WHEREAS, the Amendment revises the budget for the TIF District to increase the amount budgeted for the construction of affordable housing and to decrease the amount budgeted for land acquisition but does not increase the total estimated cost of the project or the total amount of bonded indebtedness. NOW THEREFORE, BE IT RESOLVED by the Board of Commissioners of the City of Monticello Economic Development Authority as follows: 1. The Amendment is hereby approved in substantially the form on file in City Hall and attached hereto as Exhibit A. 2. Upon approval of the Amendment by the City Council of the City, Authority staff is authorized to forward a copy of the TIF Plan as modified by the Amendment (the "Modified TIF Plan") to the Department of Revenue and the State Auditor pursuant to Minnesota Statutes 469.175, subd.4(a). The City Clerk is authorized and directed to forward a copy of the Modified TIF Plan to Wright County. DATED: June 8, 2022 President ATTEST: Secretary MN190\170\789821.v1 EXHIBIT A ATTACHMENT 1 MODIFICATION OF THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 142 WITHIN THE CENTRAL MONTICELLO REDEVELOPMENT PROJECT NO.1 I. Background The Tax Increment Financing Plan for Tax Increment Financing District No. 1-42 (the "TIF District") within Central Monticello Redevelopment Project No. 1 (the "Redevelopment Project") was originally approved by the City of Monticello (the "City") on February 14, 2022 (Resolution No. 2022-14), and by the Monticello Economic Development Authority (the "Authority") on February 23, 2022 (Resolution No. 2022-03); The City and the Authority have determined a need to modify the TIF Plan in order to amend the estimated sources and uses of funds; Nothing in this modification is intended to modify or supersede or alter the activities described in the original Redevelopment Program for Central Monticello Redevelopment Project No. 1. The TIF Plan remains in full force and effect and is not modified except as described in this modification document. II. TIF Plan Modification to TIF District No. 1-42 The following sections of the TIF Plan for TIF District No. 1-42 are modified as shown: Subsection 2.04.3 Estimated Sources and Uses of Funds. Replaced in its entirety to read as follows: The estimated sources of revenue, along with the estimated Public Development Costs of the TIF District, are itemized in Figure 2-1 that follows. Such costs are eligible for reimbursement from tax increments from the TIF District. The City and Authority reserve the right to administratively adjust the amount of any of the Estimated Tax Increment Project Cost line items listed in Figure 2-1, so long as the total Estimated Tax Increment Project Costs amount, not including financing costs, is not increased. MN190\170\789821.v1 Figure 2-1 Estimated Sources and Uses of Funds Estimated Project/Financing Costs (to be paid or financed with Tax Increment Revenues) Total Estimated Tax Increment Revenues Land/building acquisition Tax increment revenues distributed from the County 4,596,000 Interest and investment earnings 50,000 Sales/lease proceeds - Market value homestead credit - Total Estimated Tax Increment Revenues 4,646,000 Estimated Project/Financing Costs (to be paid or financed with Tax Increment Revenues) Project costs Land/building acquisition 180,697 Site improvements/preparation costs - Utilities - Other public improvements - Construction of affordable housing 2,946,303 Administrative costs 100,000 Estimated Tax Increment Project Costs 3,227,000 Estimated financing costs Interest expense 1,419,000 Total Estimated Project/Financing Costs to be Paid from Tax Increment Revenues 4,646,000 Estimated Financing Total amount of bonds to be issued 4,646,000 4 MN190\170\789821.v1 ATTACHMENT 1 MODIFICATION OF THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 1-42 WITHIN THE CENTRAL MONTICELLO REDEVELOPMENT PROJECT NO.1 I. Background The Tax Increment Financing Plan for Tax Increment Financing District No. 1-42 (the "TIF District") within Central Monticello Redevelopment Project No. 1 (the "Redevelopment Project") was originally approved by the City of Monticello (the "City") on February 14, 2022 (Resolution No. 2022- 14), and by the Monticello Economic Development Authority (the "Authority") on February 23, 2022 (Resolution No. 2022-03); The City and the Authority have determined a need to modify the TIF Plan in order to amend the estimated sources and uses of funds; Nothing in this modification is intended to modify or supersede or alter the activities described in the original Redevelopment Program for Central Monticello Redevelopment Project No. 1. The TIF Plan remains in full force and effect and is not modified except as described in this modification document. II. TIF Plan Modification to TIF District No. 1-42 The following sections of the TIF Plan for TIF District No. 1-42 are modified as shown: Subsection 2.04.3 Estimated Sources and Uses of Funds. Replaced in its entirety to read as follows: The estimated sources of revenue, along with the estimated Public Development Costs of the TIF District, are itemized in Figure 2-1 that follows. Such costs are eligible for reimbursement from tax increments from the TIF District. The City and Authority reserve the right to administratively adjust the amount of any of the Estimated Tax Increment Project Cost line items listed in Figure 2-1, so long as the total Estimated Tax Increment Project Costs amount, not including financing costs, is not increased. Figure 2-1 Estimated Sources and Uses of Funds Estimated Project/Financing Costs (to be paid or financed with Tax Increment Revenues) Total Estimated Tax Increment Revenues Land/building acquisition Tax increment revenues distributed from the County 4,596,000 Interest and investment earnings 50,000 Sales/lease proceeds - Market value homestead credit - Total Estimated Tax Increment Revenues 4,646,000 Estimated Project/Financing Costs (to be paid or financed with Tax Increment Revenues) Project costs Land/building acquisition 180,697 Site improvements/preparation costs - Utilities - Other public improvements - Construction of affordable housing 2,946,303 Administrative costs 100,000 Estimated Tax Increment Project Costs 3,227,000 Estimated financing costs Interest expense 1,419,000 Total Estimated Project/Financing Costs to be Paid from Tax Increment Revenues 4,646,000 Estimated Financing Total amount of bonds to be issued 2 4,646,000 Preliminary for Discussion City of Monticello TIF District 1-42 and TIF 1-43 Adopted TIF Plans Estimated Tax Increment Project Costs Estimated financing costs Interest expense 3,227,000 3,589,000 6,816,000 Proposed Modified TIF Plans TIF 1-42 TIF 1-42 TIF 1-43 Combined Total Total Total Total Estimated Tax Increment Revenues (from tax increment generated by the district) 4,596,000 5,733,000 10,329,000 Tax increment revenues distributed from the County 4,596,000 5,733,000 10,329,000 Interest and investment earnings 50,000 60,000 110,000 Sales/lease proceeds - - - Market value homestead credit - - - Total Estimated Tax Increment Revenues 4,646,000 5,793,000 10,439,000 Estimated Project/Financing Costs (to be paid or financed with tax increment) Project costs Land/building acquisition 384,760 1,680,670 2,065,430 Site improvements/preparation costs - - - Utilities Other public improvements - - - Construction of affordable housing (by Headwaters) 2,742,240 1,808,330 4,550,570 Construction of affordable housing (available for other future projects) Subtotal Construction of affordable housing 2,742,240 1,808,330 4,550,570 Administrative costs 100,000 100,000 200,000 Estimated Tax Increment Project Costs Estimated financing costs Interest expense 3,227,000 3,589,000 6,816,000 Proposed Modified TIF Plans TIF 1-42 TIF 1-43 Combined Total Total Total Comments 2,792,381 Future / not obligated - this amount is the difference between the 26 2,946,303 4,596,000 5,733,000 10,329,000 50,000 60,000 110,000 the Land, TIF notes to Headwater, and admin costs 100,000 10,439,000 4,646,000 5,793,000 180,697 789,303 970,000 EDA will be reimbursed for the land through an interfund loan based - on the appraisal amount. TIF will not be used to reimurse payment of - special assessments. 1,263,531 1,590,087 2,853,619 Maximum par amount of TIF notes to Headwaters 1,682,772 1,109,610 2,792,381 Future / not obligated - this amount is the difference between the 26 2,946,303 2,699,697 5,646,000 year duaration for the TIF Districts in the Plan and the use of TIF for Assessments paid by Headwaters - EDA will agree to increase reimbursement for construction of affordable housing 43,107 188,295 the Land, TIF notes to Headwater, and admin costs 100,000 100,000 200,000 EDA will use increment to cover adm costs 3,227,000 3,589,000 6,816,000 1,419,000 2,204,000 3,623,000 1,419,000 2,204,000 3,623,000 Estimated interest payable to the EDA For interfund loans and to the TIF Notes to be issued to Headwaters. Actual amount may be less or Total Estimated Project/Financing Costs to be Paid from Tax Increment 4,646,000 5,793,000 10,439,000 4,646,000 5,793,000 10,439,000 greater depending on timing of issuance of obligations and actual amount of annual increment generated Estimated Financing Total amount of bonds to be issued 4,646,000 5,793,000 10,439,000 4,646,000 5,793,000 10,439,000 Notes: Assessments paid by Headwaters - EDA will agree to increase reimbursement for construction of affordable housing 43,107 188,295 231,402 Original preliminary offer of terms before Assessments for reimbursement of construction of affordable housing 1,220,424 1,401,792 2,622,217 Total Combined 1,263,531 1,590,087 2,853,619 Monticello -k� NORTHLAND ®, PUBLIC FINANCE 3/22/2022 EDA Agenda: 06/08/22 4f. Consideration of Adopting Resolution #2022-14 approving a modification of TIF Plan budget for TIF District No. 1-43 to reflect updated land valuation per completed appraisal report (JT) A. REFERENCE AND BACKGROUND: The EDA is being asked to modify the TIF Plan for TIF District No. 1-43 to approving a modification of the TIF Plan for TIF District No. 1-43 revising the sources and uses budget to reflect accurate land valuation of $789,303 as determined in a completed appraisal report. As you will recall, TIF 1-43 was recently established by the City Council as an Affordable Housing TIF District in support of Headwaters Development's multi -family senior (age 55 +) Twin home Villas proposal. The City Council held the public hearing and authorized establishing the TIF District on February 14, 2022. The EDA took similar action approving the TIF District at its meeting on February 23, 2022. Headwaters Development has proposed its 60 -unit Villas development at an EDA owned, 16.71 - acre parcel along 7th Street West. To guide appropriate land sale discussions with Headwaters Development, the EDA attorney recommended that a land appraisal be completed. The EDA then contracted with a real estate appraiser, Nagell Appraisal, Incorporated, Plymouth, MN, to complete a valuation report. The vacant land appraisal report was finalized and provided to the EDA in late February 2022, too late to be used in the original TIF Plan approved by the City and the EDA. The original TIF Plan budget used an estimate of the land value, $1,680,670. Since the completed appraisal report contained a land value with a significant variance from the original estimate, a TIF Plan budget modification is required to present a more accurate summary of the sources and uses of funds. The budget modification does not alter the TIF Plan activities, increment projections nor impact the developer nor alter the proposed development in any manner. A summary of the proposed budget modification is included as Exhibit B. (Attachment 1). To be clear, the EDA will be compensated for the full market value of the land. The total payment to the EDA will be $789,303, plus interest at a rate of 3.0 percent for a portion of the total payment amount. The EDA acted recently adopting a plan to transfer pooled increment from existing Affordable Housing TIF Districts into TIF 1-42 and TIF 1-43 allowing an immediate reimbursement for a portion (approximately 82.47 percent) of the land from increment transferred into the TIF District. Al. STAFF IMPACT: The staff workload related to processing the approval of the proposed TIF Plan budget modification is minimal. The EDA attorney and Northland EDA Agenda: 06/08/22 Securities staff as well as the Economic Development manager and Community Development Director have time allocated to the budget modification process. A2. BUDGET IMPACT: The budget impact from the TIF Plan budget modification is modest. The incurred legal costs will be covered through the developer funded TIF Escrow account. B. ALTERNATIVE ACTIONS: 1. Motion to adopt Resolution No. 2022-14 approving a modification of the TIF Plan for TIF District No. 1-43 revising the sources and uses budget to reflect accurate land valuation as per a completed appraisal report. 2. Motion to table consideration of Resolution No. 2022-14 for further research and/or discussion. C. STAFF RECOMMENDATION: City staff recommends adoption of Resolution No. 2022-14 approving the TIF Plan budget modification. The budget modification is required because the variance in the land valuation in the appraisal report versus the estimated amount in the original TIF Plan exceeded the allowed adjustment threshold. The TIF Plan budget modification is solely limited to the "sources and uses" component of the TIF Pan and does not impact the Plan activities nor the developer or its proposal in any other manner. SUPPORTING DATA: a. Resolution No. 2022-14 b. Attachment 1— Sources and Uses of Funds Budget Modification TIF Plan 1-43 c. Summary Budget Modification TIF District No. 1-42 and TIF District No 1-43 PA CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2022-14 RESOLUTION APPROVING A MODIFICATION OF THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 1-43 WHEREAS, on February 23, 2022, the City of Monticello Economic Development Authority (the "Authority") approved a Tax Increment Financing Plan (the "TIF Plan") for Tax Increment Financing District No. 1-43 (Headwaters Villa Project) (the "TIF District") located within the Central Monticello Redevelopment Project Area No. 1 (the "Redevelopment Project"), pursuant to Minnesota Statutes, Sections 469.001 to 469.047, Sections 469.090 to 469.108 1, as amended, and Sections 469.174 to 469.1794, as amended (collectively, the "Act"), and on February 14, 2022, the City of Monticello, Minnesota (the "City") approved the establishment of the TIF District; and WHEREAS, the City and Authority have determined a need to modify the TIF Plan in order to amend the budget contained therein as reflected in that certain document provided in Exhibit A attached hereto and labeled "Modification of the Tax Increment Financing Plan for Tax Increment Financing District No. 1-43 within the Central Monticello Redevelopment Project No. 1" (the "Amendment"); and WHEREAS, the Amendment is consistent with the redevelopment plan for the Redevelopment Project; and WHEREAS, pursuant to Section 469.175, subd. 4(b) of the Act, a tax increment financing plan may be modified without public hearing or the findings required to be made for the original tax increment financing plan if the modification does not include (i) any reduction or enlargement of the geographic area of the project or tax increment financing district; (ii) an increase in the amount of bonded indebtedness; (iii) a determination to capitalize interest on debt if that determination was not a part of the original plan; (iv) an increase in the portion of the captured net tax capacity to be retained by the City; (v) an increase in the estimated cost of the project, including administrative expenses, to be paid or financed with tax increment from the district; or (vi) the designation of additional property to be acquired by the authority; and WHEREAS, the Amendment revises the budget for the TIF District to increase the amount budgeted for the construction of affordable housing and to decrease the amount budgeted for land acquisition but does not increase the total estimated cost of the project or the total amount of bonded indebtedness. NOW THEREFORE, BE IT RESOLVED by the Board of Commissioners of the City of Monticello Economic Development Authority as follows: 1. The Amendment is hereby approved in substantially the form on file in City Hall and attached hereto as Exhibit A. 2. Upon approval of the Amendment by the City Council of the City, Authority staff is authorized to forward a copy of the TIF Plan as modified by the Amendment (the "Modified TIF Plan") to the Department of Revenue and the State Auditor pursuant to Minnesota Statutes 469.175, subd.4(a). The City Clerk is authorized and directed to forward a copy of the Modified TIF Plan to Wright County. DATED: June 8, 2022 President ATTEST: Secretary MN190\170\789821.v1 EXHIBIT A ATTACHMENT 1 MODIFICATION OF THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 143 WITHIN THE CENTRAL MONTICELLO REDEVELOPMENT PROJECT NO. 1 I. Background The Tax Increment Financing Plan for Tax Increment Financing District No. 1-43 (the "TIF District") within Central Monticello Redevelopment Project No. 1 (the "Redevelopment Project") was originally approved by the City of Monticello (the "City") on February 14, 2022 (Resolution No. 2022-14), and by the Monticello Economic Development Authority (the "Authority") on February 23, 2022 (Resolution No. 2022-03); The City and the Authority have determined a need to modify the TIF Plan in order to amend the estimated sources and uses of funds; Nothing in this modification is intended to modify or supersede or alter the activities described in the original Redevelopment Program for Central Monticello Redevelopment Project No. 1. The TIF Plan remains in full force and effect and is not modified except as described in this modification document. II. TIF Plan Modification to TIF District No. 1-43 The following sections of the TIF Plan for TIF District No. 1-43 are modified as shown: Subsection 2.04.3 Estimated Sources and Uses of Funds. Replaced in its entirety to read as follows: The estimated sources of revenue, along with the estimated Public Development Costs of the TIF District, are itemized in Figure 2-1 that follows. Such costs are eligible for reimbursement from tax increments from the TIF District. The City and Authority reserve the right to administratively adjust the amount of any of the Estimated Tax Increment Project Cost line items listed in Figure 2-1, so long as the total Estimated Tax Increment Project Costs amount, not including financing costs, is not increased. MN190\170\789821.v1 Figure 2-1 Estimated Sources and Uses of Funds Total Estimated Tax Increment Revenues (from tax increment generated by the district) Tax increment revenues distributed from the County 5,733,000 Interest and investment earnings 60,000 Sales/lease proceeds - Market value homestead credit - Total Estimated Tax Increment Revenues 5,793,000 Estimated Project/Financing Costs (to be paid or financed with tax increment) Project costs Land/building acquisition 789,303 Site improvements/preparation costs Utilities - Other public improvements - Construction of affordable housing 2,699,697 Administrative costs 100,000 Estimated Tax Increment Project Costs 3,589,000 Estimated financing costs Interest expense 2,204,000 Total Estimated Project/Financing Costs to be Paid from Tax Increment 5,793,000 Estimated Financing Total amount of bonds to be issued 5,793,000 4 MN190\170\789821.v1 ATTACHMENT 1 MODIFICATION OF THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 1-43 WITHIN THE CENTRAL MONTICELLO REDEVELOPMENT PROJECT NO.1 I. Background The Tax Increment Financing Plan for Tax Increment Financing District No. 1-43 (the "TIF District") within Central Monticello Redevelopment Project No. 1 (the 'Redevelopment Project") was originally approved by the City of Monticello (the "City") on February 14, 2022 (Resolution No. 2022- 14), and by the Monticello Economic Development Authority (the "Authority") on February 23, 2022 (Resolution No. 2022-03); The City and the Authority have determined a need to modify the TIF Plan in order to amend the estimated sources and uses of funds; Nothing in this modification is intended to modify or supersede or alter the activities described in the original Redevelopment Program for Central Monticello Redevelopment Project No. 1. The TIF Plan remains in full force and effect and is not modified except as described in this modification document. II. TIF Plan Modification to TIF District No. 1-43 The following sections of the TIF Plan for TIF District No. 1-43 are modified as shown: Subsection 2.04.3 Estimated Sources and Uses of Funds. Replaced in its entirety to read as follows: The estimated sources of revenue, along with the estimated Public Development Costs of the TIF District, are itemized in Figure 2-1 that follows. Such costs are eligible for reimbursement from tax increments from the TIF District. The City and Authority reserve the right to administratively adjust the amount of any of the Estimated Tax Increment Project Cost line items listed in Figure 2-1, so long as the total Estimated Tax Increment Project Costs amount, not including financing costs, is not increased. Figure 2-1 Estimated Sources and Uses of Funds Total Estimated Tax Increment Revenues (from tax increment generated by the district) Tax increment revenues distributed from the County 5,733,000 Interest and investment earnings 60,000 Sales/lease proceeds - Market value homestead credit - Total Estimated Tax Increment Revenues 5,793,000 Estimated Project/Financing Costs (to be paid or financed with tax increment) Project costs Land/building acquisition 789,303 Site improvements/preparation costs Utilities - Other public improvements - Construction of affordable housing 2,699,697 Administrative costs 100,000 Estimated Tax Increment Project Costs 3,589,000 Estimated financing costs Interest expense 2,204,000 Total Estimated Project/Financing Costs to be Paid from Tax Increment 5,793,000 Estimated Financing Total amount of bonds to be issued 5,793,000 2 Preliminary for Discussion City of Monticello TIF District 1-42 and TIF 1-43 Adopted TIF Plans Estimated Tax Increment Project Costs Estimated financing costs Interest expense 3,227,000 3,589,000 6,816,000 Proposed Modified TIF Plans TIF 1-42 TIF 1-42 TIF 1-43 Combined Total Total Total Total Estimated Tax Increment Revenues (from tax increment generated by the district) 4,596,000 5,733,000 10,329,000 Tax increment revenues distributed from the County 4,596,000 5,733,000 10,329,000 Interest and investment earnings 50,000 60,000 110,000 Sales/lease proceeds - - - Market value homestead credit - - - Total Estimated Tax Increment Revenues 4,646,000 5,793,000 10,439,000 Estimated Project/Financing Costs (to be paid or financed with tax increment) Project costs Land/building acquisition 384,760 1,680,670 2,065,430 Site improvements/preparation costs - - - Utilities Other public improvements - - - Construction of affordable housing (by Headwaters) 2,742,240 1,808,330 4,550,570 Construction of affordable housing (available for other future projects) Subtotal Construction of affordable housing 2,742,240 1,808,330 4,550,570 Administrative costs 100,000 100,000 200,000 Estimated Tax Increment Project Costs Estimated financing costs Interest expense 3,227,000 3,589,000 6,816,000 Proposed Modified TIF Plans TIF 1-42 TIF 1-43 Combined Total Total Total Comments 2,792,381 Future / not obligated - this amount is the difference between the 26 2,946,303 4,596,000 5,733,000 10,329,000 50,000 60,000 110,000 the Land, TIF notes to Headwater, and admin costs 100,000 10,439,000 4,646,000 5,793,000 180,697 789,303 970,000 EDA will be reimbursed for the land through an interfund loan based - on the appraisal amount. TIF will not be used to reimurse payment of - special assessments. 1,263,531 1,590,087 2,853,619 Maximum par amount of TIF notes to Headwaters 1,682,772 1,109,610 2,792,381 Future / not obligated - this amount is the difference between the 26 2,946,303 2,699,697 5,646,000 year duaration for the TIF Districts in the Plan and the use of TIF for Assessments paid by Headwaters - EDA will agree to increase reimbursement for construction of affordable housing 43,107 188,295 the Land, TIF notes to Headwater, and admin costs 100,000 100,000 200,000 EDA will use increment to cover adm costs 3,227,000 3,589,000 6,816,000 1,419,000 2,204,000 3,623,000 1,419,000 2,204,000 3,623,000 Estimated interest payable to the EDA For interfund loans and to the TIF Notes to be issued to Headwaters. Actual amount may be less or Total Estimated Project/Financing Costs to be Paid from Tax Increment 4,646,000 5,793,000 10,439,000 4,646,000 5,793,000 10,439,000 greater depending on timing of issuance of obligations and actual amount of annual increment generated Estimated Financing Total amount of bonds to be issued 4,646,000 5,793,000 10,439,000 4,646,000 5,793,000 10,439,000 Notes: Assessments paid by Headwaters - EDA will agree to increase reimbursement for construction of affordable housing 43,107 188,295 231,402 Original preliminary offer of terms before Assessments for reimbursement of construction of affordable housing 1,220,424 1,401,792 2,622,217 Total Combined 1,263,531 1,590,087 2,853,619 Monticello -k� NORTHLAND ®, PUBLIC FINANCE 3/22/2022 EDA Agenda: 06/08/22 5. PUBLIC HEARING - Consideration of Opening and Holding a Land Sale Public Hearing related to the EDA's Proposed Sale of Lot 1, Block 5 Country Club Manor, First Addition to Headwaters Development for a multi -family apartment development proposal (JT) A. REFERENCE AND BACKGROUND: Pursuant to Minnesota Statutes, Section 469.105, the EDA is required to hold public hearings when it sells land. This specific land sale is related to Headwaters Development's Senior multi -family apartment proposal on the western portion of a parcel along 7t" Street West and County Road 39. The parcel is also bounded by Interstate 94 on the south. The EDA was approached by Headwaters Development in late 2020 regarding a concept development proposal targeting the housing needs of the senior 55 + demographic in the community. Headwaters Development further indicated an interest in Outlot A, County Club Manor as a viable option for the 102 -unit multi -family concept proposal. Headwaters Development also recently completed development of Willow Landing; a 96 -unit assisted living facility at 9872 Hart Boulevard, Monticello, in the spring of 2020 At the hearing, the EDA will determine if the proposed sale of the property is advisable and comports with the goals and objectives of the City's 2040 Comprehensive Plan and furthers its general plan of economic development. In pursuing the multi -family development proposal, Headwaters submitted a Tax Increment Financing (TIF) application and therein has indicated that it desires to have the land parcel conveyed to it for $1.00. As can be seen on the plat illustration, the parcel is located adjacent to County Road 39 and along 7t" Street West. An illustration showing the site with the multi -family apartment building is also attached to this report. As part of the work done in the 2040 Comprehensive Plan, the city guided the parcel as Medium Density Residential. The base zoning is R-3 though the City Council approved Planned Unit Development (PUD) for the site at the April 25, 2022, meeting. The Planning Commission reviewed the land conveyance to Headwaters Development at its April 5, 2022, meeting and approved a resolution finding the proposed conveyance in conformance with the 2040 Comprehensive Plan and its general economic development goals and objectives. Al. STAFF IMPACT: The EDA attorney (Kennedy and Graven) the Financial Advisor (Northland Securities) as well as the Economic Development Manager and the Community Development Director have been involved in the process and document preparation tasks 1 EDA Agenda: 06/08/22 related to the proposed land sale to Headwaters Development. The platting steps, creating Lot 1, Block 5 Country Club Manor, First Addition, are being completed by the developer. The City Council recently approved the preliminary plat at its April 25, 2022, meeting. No additional staff are needed to complete the final review and approval steps. A2. BUDGET IMPACT: The budgetary impact related to EDA consideration of opening the land sale public hearing includes costs for the EDA legal counsel to draft the public hearing notice as well as the minimal cost to publish the Notice. It should be noted that the Public Hearing step is just a small part of entire action list involved in the review and approval considerations for the land conveyances between the EDA and Headwaters Development. The expenses incurred by the EDA related to drafting various documents including the purchase and development agreement, the TIF Plan, resolutions and the public hearing notice will be covered by the developer TIF escrow account. Through the TIF pay go process and the pooled TIF steps, the EDA will receive $180,697, plus interest at 3.0 percent for a portion of the purchase price through the land sale transaction. This amount reflects the recent market value appraisal. Those dollars will accrue to the EDA general fund and be available for unrestricted economic development uses. 1. Motion to close the Land Sale Public Hearing after opening it and accepting public comments. C. STAFF RECOMMENDATION: Staff recommends Alternative #1. The EDA is required to hold a public hearing for land sales per MN State Statute 469.105. The EDA has held this property for over 25 years. The Headwaters Development proposal is an opportunity to utilize the site to address an identified community housing and economic development need. The proposed land sale would allow Headwaters Development to pursue its age 55 + multi -family development serving the needs of a wide range of household income levels. The TIF contract requires that Headwaters Development make 40 percent of the units available to households with incomes at 50 percent of the County median income level. D. SUPPORTING DATA: A. Land Sale Public Hearing Notice with legal descriptions B. Country Club Manor, First Addition Plat C. Aerial Photo Ua EDA Agenda: 06/08/22 Illustration - Headwaters Development site plan with multi -family apartment Public Comments NOTICE OF PUBLIC HEARING CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY WRIGHT COUNTY, MINNESOTA NOTICE IS HEREBY GIVEN that the Board of Commissioners of the City of Monticello Economic Development Authority (the "Authority") will hold a public hearing on June 8, 2022 at approximately 6:00 P.M. at City Hall located at 505 Walnut Street, Monticello, Minnesota, to consider the proposed sale of certain property owned by the Authority (the "Property") to Headwaters Development LLC, a Minnesota limited liability company, or an entity related thereto or affiliated therewith (the "Redeveloper"), for the construction and development of multifamily rental housing in furtherance of the Authority's goals for its Central Monticello Redevelopment Project No. 1. The Property has a current parcel ID of 155033900010 and is located on the southwest corner of 7th Street West and Golf Course Road. The Property will be replatted with the legal description below: Lot 1, Block 5, Country Club Manor First Addition The EDA will consider the sale of the Property under Minnesota Statutes, Section 469.105, as amended. A summary of the terms and conditions of the land sale is available for public inspection at City Hall during regular business hours. At the hearing, the EDA will meet to decide if the sale is advisable. All interested persons may appear at the hearing and present their views on the matters orally or provide their comments prior to the meeting in writing. Dated: May _, 2022 BY ORDER OF THE BOARD OF COMMISSIONERS OF THE CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY /s/ Jim Thares Executive Director MN190\170\778857.v1 N N 0 N M 02 PRELIMINARY PLAT OF COUNTRY CLUB MANOR FIRST ADDITION LD J z \ - p Q � �� /NI I I'� \ �Ir-IA/ Tr-�)�) A /-F- 0 / _j I LU I = I ty I �=Uw I uL_IJL� I V IL_ VV\II w>_ Z= W~ H w O Y w a U z �v� M:U z>� zcwnm� LU z o° z Q G w 0 -' \ X00 OYH OOm Or,�Y OWNER: MONTIAkIjLO COUNTRY CLUB O 2: U I A �IL \ OWNER: UNKNOWN - - - \ KI 952.54 'I/�/-�I IK I -r I II/�I 11�/ A \/ C � �RIM:937.64 ., \ � .-�NV94ff93 INV:921.44 �1 \4 1 1 r i\7riyyA Io( _J�O �� DO 8 9 z / - _- �_ - - - - - ';)NV:934.27 \\ w - S88°59'40"E 400.00 - °"�_�- oHE-erl� r 18" P _ � I \� \ S88'59'40"E _ 195.14 OWNER: NICKOLAS & RN:937.44 V N.:920.54 r STEPHANIE SWANSON 60 I 6^ v o �� - � o I V S.:920.49 �:: I 5v 'z I I \ \ r - U) OWNER: J X BOWERS LLC \ \ \ \ / /1 I I �T L) I- \ IN 1 1\ I LJ OWNER: DEBRA MEYER - � lk" A \� PROPOSED BLDG o � V :`) I I� I ID, L_L/uI i A 111 <\ A WV:UNAB LE TO ., r ��N OPEN -� \\\ BLOCK 5 �J N OWNER: MARCELLA UTZKAno \\ -RIM:934.29 I - \ �h INV -931.39 I u L _ U OWNER: J X BOWERS LLC A \ �\ \� r -A A RIM:934.91 �I /1/`I ' 1 .,,, \ INV E.:630.96L'L% `r \ < L I I IP\ /INV W.:930.86 / / �/ �� ) / LIJ L�L_uvhv I L �� A V `� INV S.: 30.7 ' .:� n �f<\ RIM: 34.24 -BENCHMARK TNH r / INV: 1.34 ELEV:936.97 (iP - \\ -� r -FIM:934.83 O &gP P r �NV:918.92 UIIJ�L U� 0 eGERS��U/ :9�0 OWNER: : I GREGORY 'ter � . p � NE:929.70 � , / 6" � \ lam, %� \ \po9� \ \ \ \ \ � \ \ I � � \ �1V SE:929.85 .: i KREIN / / �- L� L�L/ � 7 OWNER: \-RIM:933.1OANNE p6� ` - / \ I OPENN�� MARKA �-RIM.932.92 % \ / INV:929.62 / OWNER: J X BOWERS LLC % / n \ V OWNER: A V-RIM:932.92 JASON & �� \ \ UTLOT \ \ \ �� \ INV:929.80 / SARAH K A A i\ I( [) _ ,�� \ \ \ \ \\ n \ 4 i -� - RIJk%932.91 THOMPSON ` I V I /-\ I �l �J I \ i91 00 \ r i \ \ \ \\\ POND \ \ RIM:934.26 OWNER: r_ G G 0 - TAMMY PUNDT -- _ A I [) 1 A / A \ / I� [) I \ / r_- V / i / \ \ Ate° � INV NW:918. /-\ V L_ - \ INV SE:9 .14 �., / I I \ OWNER: \ / FD OWNER: OWNER: I \ LIJ \ F MARK DECKER TTHOMAS &PAMELA INV:UAB `_/� DALE &NINA F^ JAMES & AMBER OWNER: I5 � l INV:UNABLE TO � i HOLLINGSONWORTH w �� _ l I I BEACHEM I -- OPEN lJ- I I I WIN AMEX PROPERTIES i \� \� �� R�� 1 \-RIM:93 .37 LIJ LIJ " 1�/ LIJ ., INV: 42 _�` LI_ OWNER: 3 OWNER: _ _ I - - �, L A \ _ L - - - i RANDALL PAUMEN t1 \ \ \ \ \ DELBERT & MARCIA 1J- OWNER: - , A � _ OWNER: I 1 n DAHLHEIMER - - OWNER: � _ OWNER: I �r ANDREW KARST BETTE HARSTAD ^ \ \ \ (Y, ELIZABETH I ( I I l�_ I JASON & TERI < I „ \ \ �� -I JOHNSON LIJ i ARCHULETA ^i \ \ 9 - _RIM:934.33 1�- i�� A oA V A 6 NV:931.33 OWNER: �.; `v-� OWNER: ' RITA I li OWNER: `t / ° NUVUISTJANET KASPER i� I ARON LAMBRECHT © �LSI r Iii �RIM:936.28 OWNER: � UNABLE TO OPN I -10 SCOTT & DEANNA I ( ) iC BENCHMARK TNH - /OWNER: I TORGERSON OWNER: ELEV:939.76 OWNER: JACK &CYNTHIA -RIM: SAMUEL WELLERI \ DELAND &� \ RIM 937.59 NELSON INV:916.20 �� JOANE INV:UNABLE TO OPEN© �� LARSON�� -RIM:935.27 L _ \,-ju f I 43 , T _ INV:UNABLE TO OPEN _ -=\ RIM:934.62 OWNER: -INV N :929.72 LYNN & JOSEPA an 5 R=271 05 INV SV�/:929.72 MOELLER OWNER: B & G PROPERTIES OF ROCHESTER \ - d, INV W'929.67 i 7� �.. �� ' _ a Y� � . ,� 42°// RIM:934.17 G X 1 30, / - INV SW:930.67 LOT AREA � LOT 1-20, BLK 1 2,168 SQ. FT. ^4"` \ \ v� - �� '� to 9 �+ (�, INV SE:930.77 LOTS 1LOT � 0 BLK 2 2BLK 1 0168 SQ FT. �L� \°�� \ \ \� Tg3� _ \V:930.94 T LOT 11, BLK 2 25,209 SQ. FT. LOTS 1-10, BLK 3 2,168 SQ. FT.�I LOT 11, BLK 3 24,457 (�° \� \ 1 J --RIM:936.OI1 i�� \ 'sz, \ 9 I ��\�� IM:934.1 - i \ INV:915.5bbbb LOTS 1-20, BLK 4 2,168 SQ. FT. \ EXISTING LEGAL DESCRIPTION �s,, \ 9�s 2� - - - - - NVSE:930.87- \ 1\ LOT 21 43,469 SQ. FT. \ \� \\ J Q� < NV NE:930.72 �� rJ \ LOT 1, BLK 5 200,830 SQ. FT. °s�2 \ \ 'LOT C 86 RIM:934.14� \ \ Outlot A, Country Club Manor, City of Monticello, Wright \ �� \� LDC _, INV:930.94 OUTLOT A 26,225 SQ. FT. \ � \ � � _ / \ � � _ a. OUTLOT B 12,556 SQ. FT. County, Minnesota. \ VA\ \ VA�V j� v �i` DELINEATED WET LAN OUTLOT C 110,865 SQ. FT. VICINITY MAP SECTION 10, T. 121, R. 25, WRIGHT COUNTY, MN 6ti QST SF 'Qv qY C.S.A.H. NO. 39 � r„Y FAIRWAY DR. ca �� F 9� a ox / OWNER: RYAN BUFFALO A LAND COMPANY LLC \ OWNER: City of Monticello SURVEYOR'S NOTES: 505 Walnut Street Topography and contours are based upon measurements taken in the \� cr- Monticello, MN 55362 field by Design Tree on 07/02/2021. I SURVEYOR: There are no Railroad right of way on or near the property. C) Jonathan Schuette, Professional Land Surveyor � There are no gas pipelines lines located on or near the property. Minnesota License Number 45352 ��/1 4 Telephone: (320) 460-7110 L��_U�.f`\ i �� ENGINEER: The property does not have a corporate boundary line. Michael Gerber, Professional Engineer The property does not have any school district boundary lines. Minnesota License Number 56653 Telephone: (320) 227-0203 Property located within Zone C of FEMA FIRM Map Number 20541 ZONING: 0005 B, with an effective date of November 1, 1979. R3 Medium Density Residence District The property is not within a shoreland overlay district. Property is serviced by City sewer and water lines. v � l 631.97 \ N88°50'5Row 2"W 1035.79 I\J N OWNER/,/ iK`1�VV1i// r L_//A -11 't- r / ��'\ \-----N�pY� N� V� v _ELM STREET ENTERPRISES LLC X�- LEGEND + OHC OVERHEAD ELECTRIC - PLATTED & EXISTING LOT LINES - - - - EDGE OF WETLAND DESIGN TREE ENGINEERING INC. REPRODUCTION OF EXISTING RIGHT OF WAY PERMISSION OF DESIGN TREE ENGINEERING INC. AGGREGATE SURFACING - - - - - - - EASEMENT LINES 0 HYDRANT I>< CENTERLINE OS SANITARY MANHOLE ® BOLLARD BOUNDARY LINE 7 x x WIRE FENCE STORM SEWER LINE 104 > SANITARY SEWER LINE WATERMAIN + OHC OVERHEAD ELECTRIC =uG= UNDERGROUND ELECTRIC - - - - EDGE OF WETLAND DESIGN TREE ENGINEERING INC. REPRODUCTION OF BITUMINOUS PAVEMENT PERMISSION OF DESIGN TREE ENGINEERING INC. AGGREGATE SURFACING STATES AND WILL SUBJECT THE VIOLATORS TO LEGAL PROSECUTION. 0 HYDRANT I>< GATE VALVE OS SANITARY MANHOLE ® BOLLARD OWNER: TYLER SOUTH LLC OD STORM MANHOLE DECIDUOUS TREE ❑ CATCH BASIN CONIFEROUS TREE Q APRON Q POWER POLE O-* LIGHT POLE < GUY WIRE ❑E POWER BOX 0 100, 200' f� ELECTRIC METER © COMMUNICATION PEDESTAL 0 DENOTES COUNTY MONUMENT ❑H HAND HOLE - DENOTES FOUND IRON MONUMENT •GM GAS METER 0 = DENOTES 1/2 INCH DIAMETER BY 18 -� SIGN INCH LONG IRON PIPE MONUMENT SET AND MARKED RLS# 45352 DESIGN*TREE engineering + land surveying St. Cloud I Alexandria I Rogers 320-217-5557 I HEREBY CERTIFY THAT THIS SURVEY, PLAN, OR REPORT WAS PREPARED BY ME OR UNDER MY DIRECT SUPERVISION AND THAT I AM A DULY LICENSED LAND SURVEYOR UNDER THE LAWS OF THE STATE OF MINNESOTA. �� 0, 4L�! INTED NAME: Jonathan D. Schuette DATE: 03/03/2022 LICENSE #: 45352 PREPARED FOR: HEADWATERS DEVELOPMENT MONTICELLO, MN THIS DRAWING AND THE INFORMATION THEREIN IS THE PROPERTY OF DESIGN TREE ENGINEERING INC. USE BY THE HOLDER OR DISCLOSURE TO OTHERS WITHOUT THE PERMISSION OF DESIGN TREE ENGINEERING INC. IS PROHIBITED. IT CONTAINS PROPRIETARY AND CONFIDENTIAL INFORMATION OF DESIGN TREE ENGINEERING INC. REPRODUCTION OF THE MATERIAL HEREIN WITHOUT WRITTEN PERMISSION OF DESIGN TREE ENGINEERING INC. VIOLATES THE COPYRIGHT LAWS OF THE UNITED STATES AND WILL SUBJECT THE VIOLATORS TO LEGAL PROSECUTION. COPYRIGHT @ 2021 BY DESIGN TREE ENGINEERING DRAWN BY: NK CHECKED BY: IDS PROJECT NO.: 00021063 NO. DATE DESCRIPTION PRELIMINARY PLAT I 1 of 1 ^— -, r , �� r• '1- 44p11 1op=U//z Z, nnnn � - d d�� d•r � �.�1 - � IL f Illustration of Project on Site ■ 1--mUHM ■ � � i 1JFRf W MrWi i - J� T&nmO" 10 vM IP % 4p1 r 'ti r GE5I-2N I Hayden Stensgard From: joane larson Sent: Tuesday, May 31, 2022 4:23 PM To: Development Services Subject: Fw: Public Hearing Headwaters Follow Up Flag: Follow up Flag Status: Flagged ----- Forwarded Messa a ----- From: joane larson To: community.deve opemen urnon iceo.mn.us <community.developement@ci.monticello.mn.us> Sent: Tuesday, May 31, 2022, 04:19:36 PM CDT Subject: Fw: Public Hearing Headwaters ----- Forwarded Messa a ----- From: joane larson To: Angela Schumann <ange a.sc umann ci.monticello.mn.us> Sent: Tuesday, May 31, 2022, 03:04:33 PM CDT Subject: Public Hearing Headwaters Ms. Schumann, The history of Outlot A is familiar to us as longtime homeowners in Country Club Manor. Outlot A was zoned single family residential for many years. The developer lost the land and it has since been vacant land. Mostly city dumping snow and the street sweeper dumping sludge. Many plans were proposed and a former mayor wanted 7th St to connect with the west side . The street name was changed with no notice and when Riverwood Bank bought the land on 7th St West they paid for the connection. Our quiet neighborhood was transformed with a highway running through it. Noise increased and speeding cars have made it a dangerous road to walk with curves limiting visibilty. Even lowering the speed has not helped. Noise from 1-94 has increased so you can hardly talk in your backyard and be heard. The increased traffic from 60 units with approximately with 2 cars/unit and 4-6 trips per day or more will add more noise and congestion. Then you add 102 units in an apartment building to the mix with 100-150 cars with 4-6 trips/day. Add in the homes being built on Elm Street and a proposal (?) at this point to build apartments on the vacant land by Runnings and the congestion at Hwy 25 and & 7th will create a chokehold on an already congested intersection. Also the configuration of the 1-94 overpass at Cty Rd. 39 with limited view of oncoming traffic from West 39 into town increases the chances of accidents. I cannot believe a 1-2 day traffic study is adequate. Was Wright County Highway Dept. aware of the 102 unit apartment building when the study was done and they signed off on the increased traffic on Cty. Rd. 39 west and & 7th West. Also we object to the use of TIF money for the developer. We bought our home with no city help and raised our family here. We've paid taxes for 40 years here. We have no problem with city selling the land ( we are the city) but giving it away for$1.00 and using our taxpayer money for their development when they will reap the benefits in the years to come is ridiculous. If the developer on Elm St can build single family homes then they can build single family and/or duplex mix. .How many apartment buildings does the town need?? And more proposed on block 52!! Cedar Point's development isn't even finished yet. Once it's done it can't be undone. Maybe it's time the EDA evaluates the current projects and finds out if another apartment building is needed. Approving the deal just to put something there is no deal. sincerely, Deland and Joane Larson 11 Sandtrap Circle Monticello, MN EDA Agenda: 06/08/22 6. PUBLIC HEARING - Consideration of Opening and Holding a Land Sale Public Hearing related to the EDA's Proposed Sale of Lot 1-21, Block 1; Lot 1-11, Block 2; Lot 1-11, Block 3; Lot 1-21, Block 4; Outlot A; Outlot B and Outlot C, all in Country Club Manor, First Addition to Headwaters Development for a 60 -unit Twin home Villas development proposal (JT) A. REFERENCE AND BACKGROUND: Pursuant to Minnesota Statutes, Section 469.105, the EDA is required to hold public hearings when it sells land. This specific land sale is related to Headwaters Development's Twin home Villas development proposal on the easterly portion of a parcel along 7t" Street West and County Road 39. The parcel is also bounded by Interstate 94 on the south. The EDA was approached by Headwaters Development in late 2020 regarding a concept development proposal targeting the housing needs of the age 55 + demographic in the community. Headwaters Development further indicated an interest in the above referenced lots in Country Club Manor as a viable option for the 60 -unit Twin home Villas concept proposal. Headwaters Development also recently completed development of Willow Landing; a 96 - unit assisted living facility at 9872 Hart Boulevard, Monticello, in the spring of 2020 At the hearing, the EDA will determine if the proposed sale of the property is advisable and comports with the goals and objectives of the City's 2040 Comprehensive Plan and furthers its general plan of economic development. In pursuing the Villas development proposal, Headwaters submitted a Tax Increment Financing (TIF) application and therein has indicated that it desires to have the land parcel conveyed to it for $1.00. As can be seen on the plat illustration, the parcels are located adjacent to 7t" Street West and Interstate 1-94. An illustration showing the site layout for the 60 -unit Villas is also attached to this report. An internal road serves as the access for the 60 Villas units. As part of the work done in the 2040 Comprehensive Plan, the city guided the parcel as Medium Density Residential. The base zoning is R-3 though the City Council approved Planned Unit Development (PUD) zoning for the site at the April 25, 2022, meeting. The Planning Commission reviewed the land conveyance to Headwaters Development at its April 5, 2022, meeting and approved a resolution finding the proposed conveyance in conformance with the 2040 Comprehensive Plan and its general economic development goals and objectives. Al. STAFF IMPACT: The EDA attorney (Kennedy and Graven) the Financial Advisor (Northland Securities) as well as the Economic Development Manager and the Community 1 EDA Agenda: 06/08/22 Development Director have been involved in the process and document preparation tasks related to the proposed land sale to Headwaters Development. The platting steps, creating the new lots are being completed by the developer. The City Council recently approved the preliminary plat at its April 25, 2022, meeting. No additional staff are needed to complete the final review and approval steps. A2. BUDGET IMPACT: The budgetary impact related to EDA consideration of opening the land sale public hearing includes costs for the EDA legal counsel to draft the public hearing notice as well as the minimal cost to publish the Notice. It should be noted that the Public Hearing step is just a small part of entire action list involved in the review and approval considerations for the land conveyances between the EDA and Headwaters Development. The expenses incurred by the EDA related to drafting various documents including the purchase and development agreement, the TIF Plan, resolutions and the public hearing notice will be covered by the developer TIF escrow account. The EDA will receive $789,303 in revenue from the land sale transaction reflecting the recent market value appraisal. Those dollars will accrue to the EDA general fund and be available for unrestricted economic development uses. B. ALTERNATIVE ACTIONS: 1. Motion to close the Land Sale Public Hearing after opening it and accepting public comments. C. STAFF RECOMMENDATION: Staff recommends Alternative #1. The EDA is required to hold a public hearing for land sales per MN State Statute 469.105. The City and the EDA have held this property for over 25 years. The Headwaters Development proposal is an opportunity to utilize the site to address an identified community housing and economic development need. The proposed land sale would allow Headwaters Development to pursue its age 55 + multi -family development serving the needs of a wide range of household income levels in the community. The TIF contract requires that Headwaters Development make 40 percent of the units available to households with incomes at 50 percent of the County median income level. D. SUPPORTING DATA: A. Land Sale Public Hearing Notice with legal descriptions B. Country Club Manor, First Addition Plat Ua EDA Agenda: 06/08/22 Aerial Photo Illustration - Headwaters Development site plan with Twin homes NOTICE OF PUBLIC HEARING CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY WRIGHT COUNTY, MINNESOTA NOTICE IS HEREBY GIVEN that the Board of Commissioners of the City of Monticello Economic Development Authority (the "Authority") will hold a public hearing on June 8, 2022 at approximately 6:00 P.M. at City Hall located at 505 Walnut Street, Monticello, Minnesota, to consider the proposed sale of certain property owned by the Authority (the "Property") to Headwaters Development LLC, a Minnesota limited liability company, or an entity related thereto or affiliated therewith (the "Redeveloper"), for the construction and development of multifamily rental housing in furtherance of the Authority's goals for its Central Monticello Redevelopment Project No. 1. The Property has a current parcel ID of 155033900010 and is located on the southwest corner of 7th Street West and Golf Course Road. The Property will be replatted with the legal description below: Lots 1-21, Block 1, Country Club Manor First Addition Lots 1-11, Block 2, Country Club Manor First Addition Lots 1-11, Block 3, Country Club Manor First Addition Lots 1-21, Block 4, Country Club Manor First Addition Outlot A, Country Club Manor First Addition Outlot B, Country Club Manor First Addition Outlot C, Country Club Manor First Addition The EDA will consider the sale of the Property under Minnesota Statutes, Section 469.105, as amended. A summary of the terms and conditions of the land sale is available for public inspection at City Hall during regular business hours. At the hearing, the EDA will meet to decide if the sale is advisable. All interested persons may appear at the hearing and present their views on the matters orally or provide their comments prior to the meeting in writing. Dated: May 19, 2022 BY ORDER OF THE BOARD OF COMMISSIONERS OF THE CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY /s/ Jim Thares Executive Director MN190\170\778857.v1 N N 0 N M 02 PRELIMINARY PLAT OF COUNTRY CLUB MANOR FIRST ADDITION LD J z \ - p Q � �� /NI I I'� \ �Ir-IA/ Tr-�)�) A /-F- 0 / _j I LU I = I ty I �=Uw I uL_IJL� I V IL_ VV\II w>_ Z= W~ H w O Y w a U z �v� M:U z>� zcwnm� LU z o° z Q G w 0 -' \ X00 OYH OOm Or,�Y OWNER: MONTIAkIjLO COUNTRY CLUB O 2: U I A �IL \ OWNER: UNKNOWN - - - \ KI 952.54 'I/�/-�I IK I -r I II/�I 11�/ A \/ C � �RIM:937.64 ., \ � .-�NV94ff93 INV:921.44 �1 \4 1 1 r i\7riyyA Io( _J�O �� DO 8 9 z / - _- �_ - - - - - ';)NV:934.27 \\ w - S88°59'40"E 400.00 - °"�_�- oHE-erl� r 18" P _ � I \� \ S88'59'40"E _ 195.14 OWNER: NICKOLAS & RN:937.44 V N.:920.54 r STEPHANIE SWANSON 60 I 6^ v o �� - � o I V S.:920.49 �:: I 5v 'z I I \ \ r - U) OWNER: J X BOWERS LLC \ \ \ \ / /1 I I �T L) I- \ IN 1 1\ I LJ OWNER: DEBRA MEYER - � lk" A \� PROPOSED BLDG o � V :`) I I� I ID, L_L/uI i A 111 <\ A WV:UNAB LE TO ., r ��N OPEN -� \\\ BLOCK 5 �J N OWNER: MARCELLA UTZKAno \\ -RIM:934.29 I - \ �h INV -931.39 I u L _ U OWNER: J X BOWERS LLC A \ �\ \� r -A A RIM:934.91 �I /1/`I ' 1 .,,, \ INV E.:630.96L'L% `r \ < L I I IP\ /INV W.:930.86 / / �/ �� ) / LIJ L�L_uvhv I L �� A V `� INV S.: 30.7 ' .:� n �f<\ RIM: 34.24 -BENCHMARK TNH r / INV: 1.34 ELEV:936.97 (iP - \\ -� r -FIM:934.83 O &gP P r �NV:918.92 UIIJ�L U� 0 eGERS��U/ :9�0 OWNER: : I GREGORY 'ter � . p � NE:929.70 � , / 6" � \ lam, %� \ \po9� \ \ \ \ \ � \ \ I � � \ �1V SE:929.85 .: i KREIN / / �- L� L�L/ � 7 OWNER: \-RIM:933.1OANNE p6� ` - / \ I OPENN�� MARKA �-RIM.932.92 % \ / INV:929.62 / OWNER: J X BOWERS LLC % / n \ V OWNER: A V-RIM:932.92 JASON & �� \ \ UTLOT \ \ \ �� \ INV:929.80 / SARAH K A A i\ I( [) _ ,�� \ \ \ \ \\ n \ 4 i -� - RIJk%932.91 THOMPSON ` I V I /-\ I �l �J I \ i91 00 \ r i \ \ \ \\\ POND \ \ RIM:934.26 OWNER: r_ G G 0 - TAMMY PUNDT -- _ A I [) 1 A / A \ / I� [) I \ / r_- V / i / \ \ Ate° � INV NW:918. /-\ V L_ - \ INV SE:9 .14 �., / I I \ OWNER: \ / FD OWNER: OWNER: I \ LIJ \ F MARK DECKER TTHOMAS &PAMELA INV:UAB `_/� DALE &NINA F^ JAMES & AMBER OWNER: I5 � l INV:UNABLE TO � i HOLLINGSONWORTH w �� _ l I I BEACHEM I -- OPEN lJ- I I I WIN AMEX PROPERTIES i \� \� �� R�� 1 \-RIM:93 .37 LIJ LIJ " 1�/ LIJ ., INV: 42 _�` LI_ OWNER: 3 OWNER: _ _ I - - �, L A \ _ L - - - i RANDALL PAUMEN t1 \ \ \ \ \ DELBERT & MARCIA 1J- OWNER: - , A � _ OWNER: I 1 n DAHLHEIMER - - OWNER: � _ OWNER: I �r ANDREW KARST BETTE HARSTAD ^ \ \ \ (Y, ELIZABETH I ( I I l�_ I JASON & TERI < I „ \ \ �� -I JOHNSON LIJ i ARCHULETA ^i \ \ 9 - _RIM:934.33 1�- i�� A oA V A 6 NV:931.33 OWNER: �.; `v-� OWNER: ' RITA I li OWNER: `t / ° NUVUISTJANET KASPER i� I ARON LAMBRECHT © �LSI r Iii �RIM:936.28 OWNER: � UNABLE TO OPN I -10 SCOTT & DEANNA I ( ) iC BENCHMARK TNH - /OWNER: I TORGERSON OWNER: ELEV:939.76 OWNER: JACK &CYNTHIA -RIM: SAMUEL WELLERI \ DELAND &� \ RIM 937.59 NELSON INV:916.20 �� JOANE INV:UNABLE TO OPEN© �� LARSON�� -RIM:935.27 L _ \,-ju f I 43 , T _ INV:UNABLE TO OPEN _ -=\ RIM:934.62 OWNER: -INV N :929.72 LYNN & JOSEPA an 5 R=271 05 INV SV�/:929.72 MOELLER OWNER: B & G PROPERTIES OF ROCHESTER \ - d, INV W'929.67 i 7� �.. �� ' _ a Y� � . ,� 42°// RIM:934.17 G X 1 30, / - INV SW:930.67 LOT AREA � LOT 1-20, BLK 1 2,168 SQ. FT. ^4"` \ \ v� - �� '� to 9 �+ (�, INV SE:930.77 LOTS 1LOT � 0 BLK 2 2BLK 1 0168 SQ FT. �L� \°�� \ \ \� Tg3� _ \V:930.94 T LOT 11, BLK 2 25,209 SQ. FT. LOTS 1-10, BLK 3 2,168 SQ. FT.�I LOT 11, BLK 3 24,457 (�° \� \ 1 J --RIM:936.OI1 i�� \ 'sz, \ 9 I ��\�� IM:934.1 - i \ INV:915.5bbbb LOTS 1-20, BLK 4 2,168 SQ. FT. \ EXISTING LEGAL DESCRIPTION �s,, \ 9�s 2� - - - - - NVSE:930.87- \ 1\ LOT 21 43,469 SQ. FT. \ \� \\ J Q� < NV NE:930.72 �� rJ \ LOT 1, BLK 5 200,830 SQ. FT. °s�2 \ \ 'LOT C 86 RIM:934.14� \ \ Outlot A, Country Club Manor, City of Monticello, Wright \ �� \� LDC _, INV:930.94 OUTLOT A 26,225 SQ. FT. \ � \ � � _ / \ � � _ a. OUTLOT B 12,556 SQ. FT. County, Minnesota. \ VA\ \ VA�V j� v �i` DELINEATED WET LAN OUTLOT C 110,865 SQ. FT. VICINITY MAP SECTION 10, T. 121, R. 25, WRIGHT COUNTY, MN 6ti QST SF 'Qv qY C.S.A.H. NO. 39 � r„Y FAIRWAY DR. ca �� F 9� a ox / OWNER: RYAN BUFFALO A LAND COMPANY LLC \ OWNER: City of Monticello SURVEYOR'S NOTES: 505 Walnut Street Topography and contours are based upon measurements taken in the \� cr- Monticello, MN 55362 field by Design Tree on 07/02/2021. I SURVEYOR: There are no Railroad right of way on or near the property. C) Jonathan Schuette, Professional Land Surveyor � There are no gas pipelines lines located on or near the property. Minnesota License Number 45352 ��/1 4 Telephone: (320) 460-7110 L��_U�.f`\ i �� ENGINEER: The property does not have a corporate boundary line. Michael Gerber, Professional Engineer The property does not have any school district boundary lines. Minnesota License Number 56653 Telephone: (320) 227-0203 Property located within Zone C of FEMA FIRM Map Number 20541 ZONING: 0005 B, with an effective date of November 1, 1979. R3 Medium Density Residence District The property is not within a shoreland overlay district. Property is serviced by City sewer and water lines. v � l 631.97 \ N88°50'5Row 2"W 1035.79 I\J N OWNER/,/ iK`1�VV1i// r L_//A -11 't- r / ��'\ \-----N�pY� N� V� v _ELM STREET ENTERPRISES LLC X�- LEGEND + OHC OVERHEAD ELECTRIC - PLATTED & EXISTING LOT LINES - - - - EDGE OF WETLAND DESIGN TREE ENGINEERING INC. REPRODUCTION OF EXISTING RIGHT OF WAY PERMISSION OF DESIGN TREE ENGINEERING INC. AGGREGATE SURFACING - - - - - - - EASEMENT LINES 0 HYDRANT I>< CENTERLINE OS SANITARY MANHOLE ® BOLLARD BOUNDARY LINE 7 x x WIRE FENCE STORM SEWER LINE 104 > SANITARY SEWER LINE WATERMAIN + OHC OVERHEAD ELECTRIC =uG= UNDERGROUND ELECTRIC - - - - EDGE OF WETLAND DESIGN TREE ENGINEERING INC. REPRODUCTION OF BITUMINOUS PAVEMENT PERMISSION OF DESIGN TREE ENGINEERING INC. AGGREGATE SURFACING STATES AND WILL SUBJECT THE VIOLATORS TO LEGAL PROSECUTION. 0 HYDRANT I>< GATE VALVE OS SANITARY MANHOLE ® BOLLARD OWNER: TYLER SOUTH LLC OD STORM MANHOLE DECIDUOUS TREE ❑ CATCH BASIN CONIFEROUS TREE Q APRON Q POWER POLE O-* LIGHT POLE < GUY WIRE ❑E POWER BOX 0 100, 200' f� ELECTRIC METER © COMMUNICATION PEDESTAL 0 DENOTES COUNTY MONUMENT ❑H HAND HOLE - DENOTES FOUND IRON MONUMENT •GM GAS METER 0 = DENOTES 1/2 INCH DIAMETER BY 18 -� SIGN INCH LONG IRON PIPE MONUMENT SET AND MARKED RLS# 45352 DESIGN*TREE engineering + land surveying St. Cloud I Alexandria I Rogers 320-217-5557 I HEREBY CERTIFY THAT THIS SURVEY, PLAN, OR REPORT WAS PREPARED BY ME OR UNDER MY DIRECT SUPERVISION AND THAT I AM A DULY LICENSED LAND SURVEYOR UNDER THE LAWS OF THE STATE OF MINNESOTA. �� 0, 4L�! INTED NAME: Jonathan D. Schuette DATE: 03/03/2022 LICENSE #: 45352 PREPARED FOR: HEADWATERS DEVELOPMENT MONTICELLO, MN THIS DRAWING AND THE INFORMATION THEREIN IS THE PROPERTY OF DESIGN TREE ENGINEERING INC. USE BY THE HOLDER OR DISCLOSURE TO OTHERS WITHOUT THE PERMISSION OF DESIGN TREE ENGINEERING INC. IS PROHIBITED. IT CONTAINS PROPRIETARY AND CONFIDENTIAL INFORMATION OF DESIGN TREE ENGINEERING INC. REPRODUCTION OF THE MATERIAL HEREIN WITHOUT WRITTEN PERMISSION OF DESIGN TREE ENGINEERING INC. VIOLATES THE COPYRIGHT LAWS OF THE UNITED STATES AND WILL SUBJECT THE VIOLATORS TO LEGAL PROSECUTION. COPYRIGHT @ 2021 BY DESIGN TREE ENGINEERING DRAWN BY: NK CHECKED BY: IDS PROJECT NO.: 00021063 NO. DATE DESCRIPTION PRELIMINARY PLAT I 1 of 1 ^— -, r , �� r• '1- 44p11 1op=U//z Z, nnnn � - d d�� d•r � �.�1 - � IL f Illustration of Project on Site ■ 1--mUHM ■ � � i 1JFRf W MrWi i - J� T&nmO" 10 vM IP % 4p1 r 'ti r GE5I-2N I EDA Agenda: 06/08/22 7. Consideration of Adootine Resolution No. 2022-15 Authorizine- a Purchase and Development Agreement with Headwaters Development for Lot 1, Block 5, Country Club Manor, First Addition, in the amount of $1.00 related to a Senior Multi -Family development proposal in connection with and supported by Affordable Housing TIF District 1-42 (JT) A. REFERENCE AND BACKGROUND: The EDA is asked to consider adopting Resolution No. 2022-15 authorizing a Purchase and Development Contract with Headwaters Development, LLC for Lot 1, Block 5 Country Club Manor, First Addition. The Purchase and Development Contract relates to the Headwaters Development senior 55 + apartment development proposal. The Contract also spells out the terms of Affordable Housing TIF assistance. The developer is seeking public financial assistance for its proposal to construct a 102 -unit rental multi -family housing facility, with approximately 75 on -grade and 100 covered parking stalls. The project is to be located on a newly platted lot described as Lot 1, Block 5, Country Club Manor, First Addition. The parcel is in the westerly portion of the site formerly known as Outlot A, Country Club Manor, at the corner of Golf Course Road and 7th Street West within the City. The City and the EDA have owned this 16.71 -acre property for over 25 years. In recent years it has been used by Public Works for material storage. Due to the costs associated with the site preparation and development of the building, the developer is seeking public financial assistance from the EDA in the form of pay -go tax increment financing assistance and conveyance of the site to the developer from the EDA for the sum of $1.00. The establishment of the TIF District will compensate the EDA for the appraised value of the land allowing for the noted conveyance. The tax increment revenue is proposed to come from a newly established affordable housing district, TIF District No. 1- 42. Subject to approval of the request for public financial assistance, the developer plans to commence construction by October 15, 2022, and substantially complete construction by December 31, 2023. The total cost of the project is estimated at approximately $22.3 million or $218,518 per unit based on the developer's most recent pro forma. The developer's request for public financial assistance is to assist with the extraordinary costs of development and construction of the new housing. Headwaters Development has indicated that it will not proceed with the proposal without the approval of the requested public financial assistance. Relating to the tax increment financing assistance, the developer is committing to creating and maintaining 40% of the units (41) as affordable through the life of the district. EDA Agenda: 06/08/22 Affordable is defined as housing that is available to households with incomes at 50 percent of the area median income (Wright County) level. Other key Contract terms include: • Maximum of 15 years of TIF assistance to the developer. • A Pay Go TIF Revenue Note (payable from increment generated by new development) will be issued to the developer in the amount of $1,263,531 for qualified costs, plus interest matching the developer's borrowing costs. • At the land closing transaction, the developer will pay the special assessments against the property to the City, estimated to total $43,107. • EDA will be fully compensated for its land value in the amount of $180,697, plus interest on a portion of the purchase price. A timeline of the TIF review and approval steps to date by the EDA and City Council includes: ✓ November 29, 2021 Receipt of the Headwaters Development TIF Application ✓ December 8, 2021 EDA reviews the TIF application and accepts it ✓ December 8, 2021 EDA approves resolution requesting the City Council call for a Public Hearing for consideration of approving an Affordable Housing TIF District (1-42) ✓ December 13, 2021 City Council approves resolution calling for a February 14, 2022 Public Hearing wherein it allows public comment and discusses establishing TIF District 1-42 in support of Headwaters Development's apartment proposal ✓ February 14, 2022 City Council holds Public Hearing; Approves Resolution Establishing TIF District 1-42 and the TIF Plan relating thereto ✓ February 23, 2022 EDA approves Resolution Establishing TIF District 1-42 and the TIF Plan relating thereto Ua EDA Agenda: 06/08/22 ✓ May 23, 2022 City Council approves Resolution modifying the TIF 1-42 Summary Budget Sources and Uses to better reflect the accurate land value as per a completed real estate appraisal ✓ June 8, 2022 EDA considers a Resolution modifying the TIF 1-42 Summary Budget Sources and Uses to better reflect the accurate land value as per a completed real estate appraisal ✓ June 8, 2022 EDA considers adopting a Resolution authorizing the Purchase and Development Contract with Headwaters Development for the parcel and the related TIF District 1-42 supporting the proposed development In a related sister proposal, Headwaters Development is also proposing to develop 60 rental twin -homes on 30 pad sites (Villas) on the easterly portion of the EDA owned parcel. Due to slightly different developer ownership interests, the Villas will be presented as a separate TIF Contract (TIF Development Contract (1-43) consideration. The City's 2020 Housing Study cited a specific need for both affordable and senior housing in the community. The last affordable housing TIF District (#1-40) was established in June 2018 for the 47 -unit Rivertown Residential Suites apartment developed by the Briggs Companies. It is in the core of downtown on Block 36, and it received a Certificate of Occupancy in May 2020 and a Certificate of Completion in the fall of 2020. Al. STAFF IMPACT: Staff involved in the consideration of the TIF 1-42 Purchase and Development Agreement include the Community Development Director, Economic Development Manager, EDA attorney, and the City's financial advisor. No additional staff are needed to complete the required work steps related to this effort. An estimate of the total time commitment related to all required steps for both in-house and consultant staff is between 80 to 85 hours. Additional hours will accrue through the date of certification with Wright County. A2. BUDGET IMPACT: The budget impact related to EDA consideration of TIF District 1-42 Purchase and Development Agreement, and land sale is minimal. All consultant fees (legal and financial advisory) are covered by Headwaters Development's escrow account. The developer submitted the required fee of $10,000 in late November with EDA Agenda: 06/08/22 the TIF Application Materials. Costs incurred above and beyond that amount will be invoiced to the developer. The impact of the proposed development project offers a positive impact in that the EDA has an opportunity to sell a parcel of land for a market rate price using the mechanics of the pay -go TIF District increment capture. Over time, the captured increment will flow into the EDA General Fund for the market value price of the parcel. This will allow the EDA to use those unrestricted dollars to pursue other worthwhile housing and industrial development projects in the future. Also, Headwaters is not requesting a waiver of standard fees such as SAC, WAC, Trunk Fees, Park Dedication, etc. Ultimately, TIF increments are derived from new tax revenue from "new development" valuation. A3. COMPREHENSIVE PLAN IMPACT: The Vision adopted as part of the Monticello 2040 Plan is to create a friendly and safe community which is inclusive and fosters a sense of belonging. The city has adopted a strategy for housing which includes developing a range of housing choice and opportunity. As residents move through their career paths and family status, their housing needs change. As an actively developing community, Monticello seeks to provide opportunities for a full range of "life cycle" housing options allowing them to stay and grow with our community. This proposal meets a specific housing need in the community, which is further supported by the 2020 Housing Study. The proposed project also meets the Monticello 2040 goal for growing from within, as it is also located within the city on an underutilized parcel of land. B. ALTERNATIVE ACTIONS: Motion to adopt Resolution No. 2022-15 authorizing the Purchase and Development Agreement with Headwaters Development for Lot 1, Block 5, Country Club Manor, First Addition, in the amount of $1.00 related to an Apartment development proposal in connection with and supported by Affordable Housing TIF District 1-42 2. Motion to table consideration of Resolution No. 2022-15 for further research and/or discussion. C. STAFF RECOMMENDATION: 4 EDA Agenda: 06/08/22 Staff recommends the EDA adopt Resolution #2022-15 authorizing the Purchase and Development Agreement with Headwaters Development. This will allow the developer to move forward with its senior (55 +) apartment proposal. The developer has indicated that it will not move forward with the proposal unless it can secure TIF assistance to help offset the extraordinary costs related to the parking structure and overall development components including grading, utility extensions and site excavation. A total of 41 units will be made available to households with incomes at 50 percent of the area median income (Wright County) level. The proposed project also fills a need cited in the 2020 Housing Study. D. SUPPORTING DATA: A. Resolution No. 2022-15 B. Purchase and Development Agreement C. Northland Summary Memo D. 2020 Housing Study, Excerpts E. Headwaters Development Proposal Overview il CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2022-45 RESOLUTION AWARDING THE SALE OF, AND PROVIDING THE FORM, TERMS, COVENANTS AND DIRECTIONS FOR THE ISSUANCE OF A TAX INCREMENT REVENUE NOTE AND APPROVING A PURCHASE AND DEVELOPMENT AGREEMENT WITH HEADWATERS DEVELOPMENT LLC INCLUDING THE CONVEYANCE OF LAND BE IT RESOLVED BY the Board of Commissioners ("Board") of the City of Monticello Economic Development Authority, Monticello, Minnesota (the "Authority") as follows: Section 1. Recitals. 1.01. Authorization. The Authority and the City of Monticello, Minnesota (the "City") have approved the establishment of its Tax Increment Financing (Housing) District No. 1-42 (Headwaters Apartment Project) (the "TIF District"), within the Central Monticello Redevelopment Project No. 1 ("Redevelopment Project") and have adopted a tax increment financing plan therefore for the purpose of financing certain public improvements within the Redevelopment Project. 1.02. To facilitate development of certain property in the TIF District, the Authority proposes to enter into a Purchase and Development Contract (the "Agreement") with Headwaters Development LLC, a Minnesota limited liability company, or an affiliate thereof or entity related thereto (the "Developer"), under which among other things the Authority will convey to the Developer certain property with a current parcel ID of 155033900010 located on the southeast corner of 7th Street West and Golf Course Road to be replatted as Lot 1, Block 5, Country Club Manor First Addition, Wright County, Minnesota (the "Development Property") at a cost below market value in order for the Developer to construct an approximately 102 unit multifamily rental housing facility for seniors, with approximately 75 on -grade and 100 covered parking stalls (the "Minimum Improvements"). 1.03. The Authority proposes to sell the Development Property to the Developer at the price of $180,697 which will be paid from cash in the amount of $1.00 and a Purchase Price Note (the "Purchase Price Note") from the Developer in the amount of $180,696 which will be repaid from available tax increment generated by the Development Property in accordance with the Agreement. In addition, the Authority proposes to reimburse the Developer for certain public development costs for the Minimum Improvements in the amount not to exceed $1,263,531 through the issuance of a pay as you go tax increment financing note (the "TIF Note") subject to the terms and conditions set forth in the Agreement. 1.04. On the date hereof, the Authority conducted a duly noticed public hearing regarding the conveyance of the Development Property to the Developer pursuant to the Agreement, at which all interested parties were given an opportunity to be heard, and hereby finds that the execution of the Agreement and performance of the Authority's obligations thereunder, including the conveyance of the Development Property to the Developer, are in the best interest of the City and its residents. 1.05. The Authority and the City have previously established Tax Increment Financing District Nos. 1-19, 1-22, 1-24, 1-29, 1-30 (the "Pooled TIF Districts"). The Authority currently has pooled tax increment available for affordable housing from the Pooled TIF Districts. The Authority intends to prepay its obligation to use available tax increment from the Development Property to pay the Purchase Price Note with pooled tax increment from the Pooled TIF Districts. Section 2. Agreement and Land Sale Approved. 2.01 The Board approves the Agreement in substantially the form presented to the Board, together with any related documents necessary in connection therewith, including without limitation all documents, exhibits, certifications, or consents referenced in or attached to the Agreement including without limitation the Deed and any documents required by the title company relating to the conveyance of property (all as defined in the Agreement) (the "Development Documents"). The Board hereby approves the conveyance of the Development Property to the Developer in accordance with the terms of the Agreement. 2.02. The Board hereby authorizes the President and Executive Director, in their discretion and at such time, if any, as they may deem appropriate, to execute the Development Documents on behalf of the Authority, and to carry out, on behalf of the Authority, the Authority's obligations thereunder when all conditions precedent thereto have been satisfied. The Development Documents shall be in substantially the form on file with the Authority and the approval hereby given to the Development Documents includes approval of such additional details therein as may be necessary and appropriate and such modifications thereof, deletions therefrom and additions thereto as may be necessary and appropriate and approved by legal counsel to the Authority and by the officers authorized herein to execute said documents prior to their execution; and said officers are hereby authorized to approve said changes on behalf of the Authority. The execution of any instrument by the appropriate officers of the Authority herein authorized shall be conclusive evidence of the approval of such document in accordance with the terms hereof. This resolution shall not constitute an offer and the Development Documents shall not be effective until the date of execution thereof as provided herein. 2.03. In the event of absence or disability of the officers, any of the documents authorized by this resolution to be executed may be executed without further act or authorization of the Board by any duly designated acting official, or by such other officer or officers of the Board as, in the opinion of the City Attorney, may act in their behalf. Upon execution and delivery of the Development Documents, the officers and employees of the Board are hereby authorized and directed to take or cause to be taken such actions as may be necessary on behalf of the Board to implement the Development Documents, including without limitation the issuance of tax increment revenue obligations thereunder when all conditions precedent thereto have been A-2 MN190\170\795956.v1 satisfied and reserving funds for the payment thereof in the applicable tax increment accounts and the crediting of tax increments to the payment of the Purchase Price Note when all conditions precedent thereto have been satisfied. Section 3. TIF Note Authorized; Use of Pooled Tax Increment Approved. 3.01. The Authority hereby approves issuance of the TIF Note pursuant to the Agreement. The TIF Note shall be issued in the maximum aggregate principal amount of $1,263,531 to the Developer in consideration of certain eligible costs incurred by the Developer under the Agreement, shall be dated the date of delivery thereof, and shall bear interest at a rate to be set at the lesser of the Developer's actual mortgage financing rate or 3.75%. The TIF Note will be issued in a single series designated the Taxable Tax Increment Revenue Note (Headwaters Apartment Project) issued in the principal amount of $1,263,531 to reimburse the Developer for certain costs in accordance with Section 3.9 of the Agreement. The TIF Note is secured by TIF Note Available Tax Increment, as further described in the form of the TIF Note attached hereto as Exhibit A. The Authority hereby delegates to the Executive Director the determination of the date on which the TIF Note is to be delivered, in accordance with the Agreement. 3.02. The Authority hereby authorizes and approves the use of pooled tax increment from the Pooled TIF Districts to prepay its obligation to use available tax increment from the Development Property. Section 4. Form of TIF Note; Terms and Delivery of Note. 4.01 The TIF Note shall be in substantially the form attached hereto as Exhibit A, with the blanks to be properly filled in and the principal and interest rate amounts adjusted as of the date of issue. 4.02. Denomination, Payment. The TIF Note shall be issued as a single typewritten note numbered R-1. The TIF Note shall be issuable only in fully registered form. Principal of and interest on the TIF Note shall be payable by check or draft issued by the Registrar described herein. 4.03. Dates; Interest Payment Dates. Principal of and interest on the TIF Note shall be payable by mail to the owner of record thereof as of the close of business on the fifteenth day of the month preceding the Payment Date, whether or not such day is a business day. 4.04. Registration. The Authority hereby appoints the City Finance Director to perform the functions of registrar, transfer agent and paying agent (the "Registrar"). The effect of registration and the rights and duties of the Authority and the Registrar with respect thereto shall be as follows: (a) Register. The Registrar shall keep at its office a bond register in which the Registrar shall provide for the registration of ownership of the TIF Note and the registration of transfers and exchanges of the TIF Note. A-3 MN190\170\795956.v1 (b) Transfer of TIF Note. Upon surrender for transfer of the TIF Note duly endorsed by the registered owner thereof or accompanied by a written instrument of transfer, in form reasonably satisfactory to the Registrar, duly executed by the registered owner thereof or by an attorney duly authorized by the registered owner in writing, and consent to such transfer by the Authority if required pursuant to the Agreement, the Registrar shall authenticate and deliver, in the name of the designated transferee or transferees, a new TIF Note of a like aggregate principal amount and maturity, as requested by the transferor. The Registrar may close the books for registration of any transfer after the fifteenth day of the month preceding each Payment Date and until such Payment Date. (c) Cancellation. The TIF Note surrendered upon any transfer shall be promptly cancelled by the Registrar and thereafter disposed of as directed by the Authority. (d) Improper or Unauthorized Transfer. When the TIF Note is presented to the Registrar for transfer, the Registrar may refuse to transfer the same until it is reasonably satisfied that the endorsement on such TIF Note or separate instrument of transfer is legally authorized. The Registrar shall incur no liability for its refusal, in good faith, to make transfers which it, in its judgment, deems improper or unauthorized. (e) Persons Deemed Owners. The Authority and the Registrar may treat the person in whose name the TIF Note is at any time registered in the bond register as the absolute owner of the TIF Note, whether the TIF Note shall be overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on such TIF Note and for all other purposes, and all such payments so made to any such registered owner or upon the owner's order shall be valid and effectual to satisfy and discharge the liability of the Authority upon such TIF Note to the extent of the sum or sums so paid. (f) Taxes, Fees and Charges. For every transfer or exchange of the TIF Note, the Registrar may impose a charge upon the owner thereof sufficient to reimburse the Registrar for any tax, fee, or other governmental charge required to be paid with respect to such transfer or exchange. (g) Mutilated, Lost, Stolen or Destroyed TIF Note. In case any TIF Note shall become mutilated or be lost, stolen, or destroyed, the Registrar shall deliver a new TIF Note of like amount, Termination Dates and tenor in exchange and substitution for and upon cancellation of such mutilated TIF Note or in lieu of and in substitution for such TIF Note lost, stolen, or destroyed, upon the payment of the reasonable expenses and charges of the Registrar in connection therewith; and, in the case the TIF Note lost, stolen, or destroyed, upon filing with the Registrar of evidence satisfactory to it that such TIF Note was lost, stolen, or destroyed, and of the ownership thereof, and upon furnishing to the Registrar of an appropriate bond or indemnity in form, substance, and amount satisfactory to it, in which both the Authority and the Registrar shall be named as obligees. The TIF Note so surrendered to the Registrar shall be cancelled by it and evidence of such cancellation shall be given to the Authority. If the mutilated, lost, stolen, or destroyed TIF Note has already matured or been called for redemption in accordance with its terms, it shall not be necessary to issue a new TIF Note prior to payment. A-4 MN190\170\795956.v1 4.05. Preparation and Delivery. The TIF Note shall be prepared under the direction of the Executive Director and shall be executed on behalf of the Authority by the signatures of its President and Executive Director. In case any officer whose signature shall appear on the TIF Note shall cease to be such officer before the delivery of the TIF Note, such signature shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until delivery. When the TIF Note has been so executed, it shall be delivered by the Executive Director to the owner thereof in accordance with the Agreement. Section 5. Security Provisions. 5.01. Pledge. The Authority hereby pledges to the payment of the principal of and interest on the TIF Note all TIF Note Available Tax Increment as defined in the TIF Note. TIF Note Available Tax Increment shall be applied to payment of the principal of and interest on the TIF Note in accordance with the terms of the form of TIF Note set forth in Section 2 of this resolution. Section 6. Certification of Proceedings. 6.01. Certification of Proceedings. The officers of the Authority are hereby authorized and directed to prepare and furnish to the owner of the TIF Note certified copies of all proceedings and records of the Authority, and such other affidavits, certificates, and information as may be required to show the facts relating to the legality and marketability of the TIF Note as the same appear from the books and records under their custody and control or as otherwise known to them, and all such certified copies, certificates, and affidavits, including any heretofore furnished, shall be deemed representations of the Authority as to the facts recited therein. Section 7. Effective Date. This resolution shall be effective upon approval. Approved by the Board of Commissioners of the City of Monticello Economic Development Authority on June 8, 2022. President ATTEST: Executive Director A-5 MN190\170\795956.v1 EXHIBIT A UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF WRIGHT CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY No. R-1 $ TAXABLE TAX INCREMENT REVENUE NOTE SERIES 20_ (HEADWATERS APARTMENT PROJECT) Date Rate of Original Issue [lesser of 3.75% or Developer's actual financing rate] , 20_ The City of Monticello Economic Development Authority (the "Authority") for value received, certifies that it is indebted and hereby promises to pay to LLC, a Minnesota limited liability company, or registered assigns (the "Owner"), the principal sum of $ and to pay interest thereon at the rate of percent (%) per annum, solely from the sources and to the extent set forth herein. Capitalized terms shall have the meanings provided in the Purchase and Development Contract between the Authority and the Owner, dated as of June 8, 2022 (the "Agreement"), unless the context requires otherwise. 1. Payments. Principal and interest (the "Payments") shall be paid on August 1, 2025 and each February 1 and August 1 thereafter ("Payment Dates") to and including February 1, 2041 (the "Maturity Date") in the amounts and from the sources set forth in Section 3 herein. Payments shall be applied first to accrued interest, and then to unpaid principal. TIF Note Available Tax Increment will not include any Tax Increment (as defined the Agreement) if, as of any Payment Date, there is an uncured Event of Default under the Agreement. Payments are payable by mail to the address of the Owner or such other address as the Owner may designate upon sixty (60) days written notice to the Authority. Payments on this TIF Note are payable in any coin or currency of the United States of America which, on the Payment Date, is legal tender for the payment of public and private debts. 2. Interest. Interest at the rate stated herein shall accrue on the unpaid principal, commencing on the date of original issue. The Note shall bear simple non -compounding interest. 3. TIF Note Available Tax Increment. (a) Payments on this TIF Note are payable on each Payment Date solely from and in the amount of TIF Note Available Tax Increment, which shall mean, on each Payment Date, seventy-two and a half percent (72.5%) of the Tax Increment A-1 MN190\170\795956.v1 attributable to the Minimum Improvements and Development Property that is actually paid to the Authority by Wright County in the six (6) months preceding the Payment Date. (b) The Authority shall have no obligation to pay principal of and interest on this TIF Note on each Payment Date from any source other than TIF Note Available Tax Increment and the failure of the Authority to pay the entire amount of principal or interest on this TIF Note on any Payment Date shall not constitute a default hereunder as long as the Authority pays principal and interest hereon to the extent of TIF Note Available Tax Increment. The Authority shall have no obligation to pay any unpaid balance of principal or accrued interest that may remain after the final Payment on the Maturity Date. 4. Default. The Authority's payment obligations shall be subject to Sections 9.1 and 9.2 of the Agreement and are further subject to the conditions that (i) no Event of Default under Section 9.1 of the Agreement shall have occurred and be continuing at the time payment is otherwise due hereunder; and (ii) the Agreement and this TIF Note shall not have been terminated in accordance with Section 9.2 of the Agreement. Any such suspended and unpaid amounts shall become payable, without interest accruing thereon in the meantime, if this TIF Note has not been terminated in accordance with Section 9.2 of the Agreement and said Event of Default shall thereafter have been cured in accordance with Section 9.2. If pursuant to the occurrence of an Event of Default under the Agreement the Authority elects, in accordance with the Agreement, to cancel and rescind the Agreement and/or this TIF Note, the Authority shall have no further obligation under this TIF Note whatsoever. Reference is hereby made to all of the provisions of the Agreement, for a fuller statement of the rights and obligations of the Authority to pay the principal of this TIF Note and the interest thereon, and said provisions are hereby incorporated into this TIF Note as though set out in full herein. 5. Prepayment. The principal sum and all accrued interest payable under this TIF 6. Nature of Obligation. _ This TIF Note is one of an issue in the total principal amount of $ , issued to aid in financing certain public development costs and administrative costs of a Redevelopment Project undertaken by the Authority pursuant to Minnesota Statutes, Sections 469.090 through 469.1081, as amended, and Section 469.001 through 469.047, as amended, and is issued pursuant to an authorizing resolution (the "Resolution") duly adopted by the Authority on , 2022, and pursuant to and in full conformity with the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Sections 469.174 to 469.1794, as amended. This TIF Note is a limited obligation of the Authority which is payable solely from TIF Note Available Tax Increment pledged to the payment hereof under the Resolution. This TIF Note and the interest hereon shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including, without limitation, the Authority or the City of Monticello, Minnesota (the "City"). Neither the State of Minnesota, the City, the Authority nor any political subdivision thereof shall be obligated to pay the principal of or interest on this TIF Note or other costs incident hereto except out of TIF Note Available Tax Increment, and neither the full faith and credit nor the taxing power of the State of Minnesota , the City, the Authority, or any political subdivision thereof is pledged to the payment of the principal of or interest on this TIF Note or other costs incident hereto. A-2 MN190\170\795956.v1 THE AUTHORITY MAKES NO REPRESENTATION OR WARRANTY THAT THE TIF NOTE AVAILABLE TAX INCREMENT WILL BE SUFFICIENT TO PAY THE PRINCIPAL OF AND INTEREST ON THIS NOTE. 7. Registration and Transfer. This TIF Note is issuable only as a fully registered TIF Note without coupons. As provided in the Resolution, and subject to certain limitations set forth therein, this TIF Note is transferable upon the books of the Authority kept for that purpose at the principal office of the Executive Director, by the Owner hereof in person or by such Owner's attorney duly authorized in writing, upon surrender of this TIF Note together with a written instrument of transfer satisfactory to the Authority, duly executed by the Owner. Upon such transfer or exchange and the payment by the Owner of any tax, fee, or governmental charge required to be paid by the Authority with respect to such transfer or exchange, there will be issued in the name of the transferee a new TIF Note of the same aggregate principal amount, bearing interest at the same rate and maturing on the same dates, within 15 days after the delivery by the Owner of its request and approval of such request by the Authority if required under the Agreement. Except as otherwise provided in the Agreement, this TIF Note shall not be transferred to any person or entity, unless the Authority has provided written consent to such transfer and the Authority is provided with an investment letter in a form satisfactory to the Authority. The Registrar may close the books for registration of any transfer after the fifteenth (15th) day of the month preceding each Payment Date and until such Payment Date. IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions, and things required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen, and to be performed in order to make this TIF Note a valid and binding limited obligation of the Authority according to its terms, have been done, do exist, have happened, and have been performed in due form, time and manner as so required. IN WITNESS WHEREOF, the Board of Commissioners of the City of Monticello Economic Development Authority have caused this TIF Note to be executed with the manual signatures of its President and Executive Director, all as of the Date of Original Issue specified above. Executive Director A-3 MN190\170\795956.v1 CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY President REGISTRATION PROVISIONS The ownership of the unpaid balance of the within TIF Note is registered in the bond register of the City Finance Director, in the name of the person last listed below. Date of Registration Registered Owner , 20 Federal Tax I.D No MN190\170\795956.v1 Signature of Executive Director PURCHASE AND DEVELOPMENT CONTRACT By and Between CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY and HEADWATERS DEVELOPMENT LLC Dated as of: June 8, 2022 This document was drafted by: KENNEDY & GRAVEN, Chartered (GAF) 150 South 5th Street, Suite 700 Minneapolis, MN 55402 Telephone: (612) 337-9300 TABLE OF CONTENTS PREAMBLE............................................................................................................................1 ARTICLE I Definitions Section1.1. Definitions..........................................................................................................3 ARTICLE II Representations and Warranties Section 2.1. Representations and Warranties by the Authority.............................................7 Section 2.2. Representations and Warranties by the Developer............................................7 ARTICLE III Conveyance of Property; TIF Assistance Section 3.1. Conveyance of the Development Property......................................................... 9 Section 3.2. Purchase Price; Provisions for Payment; and Fees ............................................. 9 Section 3.3. Representation and As Is Conveyance................................................................ 9 Section3.4. Title...................................................................................................................10 Section 3.5. Contingencies to Closing on Development Property ........................................ I I Section3.6. Closing..............................................................................................................13 Section 3.7. Conveyance Subject to Right of Re-entry........................................................14 Section 3.8 Advance of Purchase Price Note and Other Costs; Tax Increment Purchase Price Note....................................................................................................................... 14 Section 3.9. Reimbursement of Public Development Costs; Issuance of TIF Note .............14 Section 3.10. No Business Subsidy.........................................................................................16 Section 3.11. Payment of Administrative Costs.....................................................................16 ARTICLE IV Construction of Minimum Improvements Section 4.1. Construction of Minimum Improvements.......................................................17 Section 4.2. Construction Plans...........................................................................................17 Section 4.3. Commencement and Completion of Construction...........................................18 Section 4.4. Certificate of Completion................................................................................19 Section 4.5. Records and Reports........................................................................................19 Section4.6. Income Limits..................................................................................................19 ARTICLE V Insurance Section5.1. Insurance..........................................................................................................21 Section5.2. Subordination...................................................................................................22 MN 1 90\170\778717.v6 ARTICLE VI Delinquent Taxes and Review of Taxes Section 6.1. Right to Collect Delinquent Taxes...................................................................23 Section 6.2. Review of Taxes..............................................................................................23 ARTICLE VII Financing Section7.1. Financing..........................................................................................................24 Section 7.2. Authority's Option to Cure Default on Mortgage............................................24 Section 7.3. Subordination and Modification for the Benefit of Mortgagee .......................24 ARTICLE VIII Prohibitions Against Assignment and Transfer; Indemnification Section 8.1. Representation as to Development...................................................................25 Section 8.2. Prohibition Against Developer's Transfer of Property and Assignmentof Agreement...............................................................................25 Section 8.3. Release and Indemnification Covenants..........................................................26 ARTICLE IX Events of Default Section 9.1. Events of Default Defined................................................................................ 28 Section 9.2. Remedies on Default......................................................................................... 28 Section 9.3. No Remedy Exclusive....................................................................................... 28 Section 9.4. No Additional Waiver Implied by One Waiver ................................................ 29 Section 10.1. Section 10.2. Section 10.3. Section 10.4. Section 10.5. Section 10.6. Section 10.7. Section 10.8. Section 10.9. Section 10.10. Section 10.11. Section 10.12. MN 1 90\170\778717.v6 ARTICLE X Additional Provisions Conflict of Interests; Authority Representatives Not Individually Liable....... 30 Equal Employment Opportunity......................................................................30 Restrictions on Use..........................................................................................30 Provisions Not Merged With Deed..................................................................30 Titles of Articles and Sections.........................................................................30 Noticesand Demands......................................................................................30 Counterparts.....................................................................................................31 Recording.........................................................................................................31 Amendment...................................................................................................... 31 AuthorityApprovals........................................................................................31 Termination...................................................................................................... 31 Choice of Law and Venue................................................................................31 SCHEDULE A Description of Development Property SCHEDULE B Form of Quit Claim Deed SCHEDULE C Form of Purchase Price Note SCHEDULED Certificate of Completion SCHEDULE E Form of Income Verification SCHEDULE F Resolution Approving Contract and TIF Note SCHEDULE G Description of Villas Property (The remainder of this page is intentionally left blank.) MN 1 90\170\778717.v6 PURCHASE AND DEVELOPMENT CONTRACT THIS AGREEMENT, made as of the 81h day of June, 2022, by and between the CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY, a public body corporate and politic and a political subdivision under the laws of the State of Minnesota (the "Authority"), and HEADWATERS DEVELOPMENT LLC, a Minnesota limited liability company (the "Developer"). WITNESSETH: WHEREAS, the Housing and Redevelopment Authority in and for the City of Monticello (the "HRA") has undertaken a program to promote economic development and job opportunities and to promote the redevelopment of land which is underutilized within the City of Monticello, Minnesota (the "City"), and in this connection created the Central Monticello Redevelopment Project No. 1 (the "Redevelopment Project") pursuant to Minnesota Statutes, Sections 469.001 through 469.047, as amended (the "HRA Act"), and adopted a redevelopment plan for the Redevelopment Project; and WHEREAS, the Authority was established pursuant to Minnesota Statutes, Sections 469.090 to 469.108 1, as amended (hereinafter referred to as the "Act"), and was authorized to transact business and exercise its powers by a resolution of the City Council of the City, which also transferred the control and responsibility for the Redevelopment Project from the HRA to the Authority; and WHEREAS, pursuant to its powers under Minnesota Statutes, Sections 469.090 to 469.1081 (the "EDA Act") and the HRA Act, the Authority is authorized to acquire real property, or interests therein, and to undertake certain activities to facilitate the development of real property by private enterprise; and WHEREAS, the Authority has acquired or will acquire certain property described in Schedule A (the "Development Property") within the Redevelopment Project, and intends to convey that property to the Developer for development of certain improvements described herein; and WHEREAS, the Authority and City have approved a Tax Increment Financing Plan and a Modification to the Tax Increment Financing Plan (collectively, the "TIF Plan") for Tax Increment Financing (Housing) District No. 1-42 (Headwaters Apartment Project) (the "TIF District"), a housing district within the Redevelopment Project, pursuant to Minnesota Statutes, Sections 469.174 to 469.1794, as amended (the "TIF Act"); and WHEREAS, pursuant to the Act, the Authority is authorized to undertake certain activities to facilitate the redevelopment of real property by private enterprise; and WHEREAS, the Authority intends to convey the Development Property to the Developer for the purposes of constructing an approximately 102 unit multifamily rental housing facility for seniors, with approximately 75 on -grade and 100 covered parking stalls, on the Development Property (the "Minimum Improvements") in accordance with the terms hereof and has requested that the Authority provide certain financial assistance to assist the Developer with certain costs thereof in MN 1 90\170\778717.v6 order to fill the gap between the total development costs and the funds available to pay such costs; and WHEREAS, the Authority believes that the development of the Development Property pursuant to this Agreement and the fulfillment generally of this Agreement are in the vital and best interests of the City and the health, safety, morals, and welfare of its residents, and in accord with the public purposes and provisions of the applicable State and local laws and requirements under which the Redevelopment Project has been undertaken and is being assisted. NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: 2 MN 1 90\170\778717.v6 ARTICLE I Definitions Section 1.1. Definitions. In this Agreement, unless a different meaning clearly appears from the context: "Act" means, collectively, the Economic Development Authority Act, Minnesota Statutes, Sections 469.090 to 469.1081, as amended, and the Housing and Redevelopment Authority Act, Minnesota Statutes, Sections 469.001 to 469.047, as amended. "Affiliate" means with respect to any entity (a) any corporation, partnership, limited liability company or other business entity or person controlling, controlled by, or under common control with the entity, and (b) any successor to such party by merger, acquisition, reorganization, or similar transaction involving all or substantially all of the assets of such party (or such Affiliate). For the purpose hereof the words "controlling", "controlled by," and "under common control with" shall mean, with respect to any corporation, partnership, limited liability company, or other business entity, the ownership of fifty percent or more of the voting interests in such entity or possession, directly or indirectly, of the power to direct or cause the direction of management policies of such entity, whether through ownership of voting securities or by contract or otherwise. "Agreement" means this Purchase and Development Agreement, as the same may be from time to time modified, amended, or supplemented. "Authority" means the City of Monticello Economic Development Authority, or any successor or assign. "Authority Representative" means the Executive Director of the Authority, or any person designated by the Executive Director to act as the Authority Representative for the purposes of this Agreement. "Authorizing Resolution" means the resolution of the Authority, substantially in the form of attached Schedule F to be adopted by the Authority to approve this Agreement and authorize the issuance of the TIF Note. "Certificate of Completion" means the certification in the form set forth in Schedule D and provided to the Developer pursuant to Section 4.4 of this Agreement. "City" means the City of Monticello, Minnesota. "Closing Date" or "Closing" means not later than September 30, 2022, or such other date as agreed to by the Authority and Developer on which the Authority will convey title to the Property to the Developer. "Construction Documents" shall mean the following documents, all of which shall be in form and substance acceptable to Authority: (a) evidence satisfactory to Authority showing that the MN 1 90\170\778717.v6 Minimum Improvements conforms to applicable zoning, subdivision and building code laws and ordinances, including a copy of the building permit for the Minimum Improvements; (b) a copy of the executed agreement between owner and architect for architectural services for the Minimum Improvements, if any, and (c) a copy of the executed general contractor's contract for the Minimum Improvements, if any. "Construction Plans" means the plans, specifications, drawings and related documents on the construction work to be performed by the Developer on the Development Property which a) shall be as detailed as the plans, specifications, drawings, and related documents which are submitted to the appropriate building officials of the City, and (b) shall include at least the following for each building: (1) site plan; (2) foundation plan; (3) basement plans; (4) floor plan for each floor; (5) cross sections of each (length and width); (6) elevations (all sides); (7) landscape plan; and (8) such other plans or supplements to the foregoing plans as the Authority may reasonably request to allow it to ascertain the nature and quality of the proposed construction work. "County" means the County of Wright, Minnesota. "Deed" means the Quit Claim Deed in the form attached hereto as Schedule B, to be executed by the City conveying the Development Property to the Developer. "Developer" means Headwaters Development LLC, a Minnesota limited liability company, or its permitted successors and assigns, as provided in Section 10.13 of this Agreement. "Development Property" means the real property described in Schedule A of this Agreement. "Event of Default" means an action by the Developer listed in Section 9.1 of this Agreement. "Minimum Improvements" means the construction by the Developer on the Development Property of an approximately 102 -unit multifamily rental housing facility for seniors, with approximately 75 on -grade and 100 covered parking stalls. "Mortgage" means any mortgage made by the Developer, which is secured, in whole or in part, with the Development Property and which is a permitted encumbrance pursuant to the provisions of Article VII of this Agreement. "Payment Date" means August 1 of the year commencing on August 1, 2025 and each February 1 and August 1 thereafter until the Termination Date. "Public Development Costs" has the meaning provided in Section 3.9(a) hereof. "Purchase Price Note" has the meaning provided in Section 3.3 hereof. "Purchase Price Note Available Tax Increment," means, on each Payment Date, 27.5% of the Tax Increment attributable to the Development Property and paid to the Authority by Wright County in the six (6) months preceding the Payment Date, after payment of the Authority's administrative costs. 4 MN 1 90\170\778717.v6 "Redevelopment Plan" means the Authority's Redevelopment Plan for the Redevelopment Project, as amended through the date of this Agreement. No. 1. "Redevelopment Project" means the Authority's Central Monticello Redevelopment Project "State" means the State of Minnesota. "Tax Increment" means that portion of the real property taxes which is paid with respect to the Development Property and which is actually remitted to the Authority as tax increment pursuant to the Tax Increment Act. The term Tax Increment does not include any amounts retained by or payable to the State auditor under Section 469.177, subdivision 11 of the Tax Increment Act. "Tax Increment Act" or "TIF Act" means the Tax Increment Financing Act, Minnesota Statutes, Sections 469.174 to 469.1794, as amended. "Tax Increment District" or "TIF District" means the Authority's Tax Increment Financing (Housing) District No. 1-42 (Headwaters Apartment Project). "Tax Increment Plan" or "TIF Plan" means the Authority's Tax Increment Financing Plan for the TIF District, as approved by the Authority on February 23, 2022, and by the City on February 14, 2022, and as modified by the Modification to the Tax Increment Financing Plan for the Tax Increment Financing District No. 1-42 (Headwaters Apartment Project), as approved by the Authority on June 8, 2022, and by the City on May 23, 2022, and as may be amended from time to time. "Tax Official" means any County assessor; County auditor; County or State board of equalization, the commissioner of revenue of the State, or any State or federal district court, the tax court of the State, or the State Supreme Court. "Termination Date" means the later of (a) date of the Authority's last receipt of Tax Increment from the TIF District in accordance with Section 469.176, subdivision lb(3) of the TIF Act; (b) the date the Purchase Price Note has been paid in full, defeased, or terminated in accordance with the terms of the resolution set forth in Schedule C; or (c) the date the TIF Note has been paid in full or terminated in accordance with the terms of this Agreement. "TIF Note" means the Taxable Tax Increment Revenue Note (Headwaters Apartment Project), substantially in the form contained in the Authorizing Resolution, to be delivered by the City to the Developer in accordance with Section 3.9(a) hereof. "TIF Note Available Tax Increment," means, on each Payment Date, 72.5% of the Tax Increment attributable to the Development Property and paid to the Authority by Wright County in the six months preceding the Payment Date, but solely to the extent payable on such Payment Date pursuant to the TIF Note. TIF Note Available Tax Increment shall not include any Tax Increment if, as of any Payment Date, there is an uncured Event of Default under this Agreement. 5 MN 1 90\170\778717.v6 "Title Company" means Guaranty Commercial Title, Inc., as the agent for Old Republic National Title Insurance Company, or other title company designated by the Developer in connection with the acquisition of the Development Property. "Transfer" has the meaning set forth in Section 8.2(a) hereof. "Unavoidable Delays" means delays beyond the reasonable control of the party seeking to be excused as a result thereof which are the direct result of war, terrorism, strikes, other labor troubles, prolonged adverse weather or acts of God, fire or other casualty to the Minimum Improvements, a pandemic or epidemic, but not including the effects of the current Covid-19 pandemic that are reasonably foreseeable on the date of this Agreement, litigation commenced by third parties which, by injunction or other similar judicial action, directly results in delays, or acts of any federal, state, or local governmental unit (other than the Authority in exercising its rights under this Agreement) which directly result in delays. Unavoidable Delays shall not include delays in the Developer's obtaining of permits or governmental approvals necessary to enable construction of the Minimum Improvements by the dates such approvals and construction is required under Sections 4.2 and 4.3 of this Agreement. "Villas Property" means the real property described in Schedule G of this Agreement. (The remainder of this page is left intentionally blank.) 6 MN 1 90\170\778717.v6 ARTICLE II resentations and Warranties Section 2.1. Representations and Warranties by the Authority. The Authority makes the following representations and warranties: (a) The Authority is an economic development authority duly organized and existing under the laws of the State. Under the provisions of the Act, the Authority has the power to enter into this Agreement and carry out its obligations hereunder. (b) The activities of the Authority are undertaken to foster the development and redevelopment of certain real property which for a variety of reasons is presently underutilized, to create increased tax base in the City, to increase affordable housing opportunities in the City, and to stimulate further development of the TIF District and Redevelopment Project as a whole. (c) The Authority makes no representation or warranty, either express or implied, as to the Development Property or its condition, or that the Development Property shall be suitable for the Developer's purposes or needs. (d) No member of the Board of Commissioners of the Authority, or officer of the Authority, has either a direct or indirect financial interest in this Agreement. Section 2.2. Representations and Warranties by the Developer. The Developer represents and warrants that: (a) The Developer is a limited liability company duly organized and in good standing under the laws of the State of Minnesota, is not in violation of any provisions of its organizational documents or the laws of the State, is duly authorized to transact business within the State, has power to enter into this Agreement and has duly authorized the execution, delivery, and performance of this Agreement by proper action of its governing members. (b) If the Developer acquires the Development Property in accordance with this Agreement, the Developer will construct, operate, and maintain the Minimum Improvements in accordance with the terms of this Agreement, the Redevelopment Plan and all applicable local, state, and federal laws and regulations (including, but not limited to, environmental, zoning, building code, labor, and public health laws and regulations). (c) The Developer has received no actual notice or communication from any local, state, or federal official that the activities of the Developer or the Authority in the Redevelopment Project may be or will be in violation of any environmental law or regulation (other than those notices or communications of which the Authority is aware). The Developer is not actually aware of any facts the existence of which would cause it to be in violation of or give any person a valid claim under any local, state, or federal environmental law, regulation, or review procedure. 7 MN 1 90\170\778717.v6 (d) The Developer will make reasonable efforts to obtain, in a timely manner, all required permits, licenses, and approvals, and will make reasonable efforts to meet, in a timely manner, all requirements of all applicable local, state, and federal laws and regulations which must be obtained or met before the Minimum Improvements may be lawfully constructed. (e) Neither the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and conditions of this Agreement is prevented, limited by, or conflicts with or results in a breach of, the terms, conditions or provisions of any corporate restriction or any evidences of indebtedness, agreement or instrument of whatever nature to which the Developer is now a party or by which it is bound, or constitutes a default under any of the foregoing. (f) Whenever any Event of Default occurs and if the Authority shall employ attorneys or incur other expenses for the collection of payments due or to become due or for the enforcement of performance or observance of any obligation or agreement on the part of the Developer under this Agreement, and the Authority prevails in such action, the Developer agrees that it shall, within thirty (30) days of written demand by the Authority, pay to the Authority the reasonable fees of such attorneys and such other expenses so incurred by the Authority. (g) The proposed development by the Developer hereunder would not occur but for the tax increment financing assistance being provided by the Authority hereunder. (h) The Developer understands that the Authority and the City may subsidize or encourage the development of other developments in the City, including properties that compete with the Development Property and the Minimum Improvements, and that such subsidies may be more favorable than the terms of this Agreement, and that neither the Authority nor the City has represented that development of the Development Property will be favored over the development of other properties. (i) The Developer represents that no more than twenty percent (20%) of the square footage of the Minimum Improvements will consist of commercial, retail or other nonresidential use. (The remainder of this page is intentionally left blank.) 8 MN 1 90\170\778717.v6 ARTICLE III Acquisition and Conveyance of Property; TIF Assistance Section 3.1. Conveyance of the Development Property. As of the date of this Agreement, the Authority owns Outlot A, Country Club Manor, Wright County, Minnesota, which includes the Development Property described in Schedule A and the Villas Property described in Schedule G. At Closing, the Authority will record a new plat for such property in order to subdivide Outlot A, a portion which will be the Development Property, and will convey title to and possession of the Development Property to the Developer, subject to all the terms and conditions of this Agreement. Section 3.2. Purchase Price; Provisions for Payment; and Fees. (a) The purchase price to be paid to the Authority by the Developer in exchange for the conveyance of the Development Property is $180,697. The purchase price shall be paid in cash from the Developer in the amount of $1.00 and a purchase price note from the Developer in the amount of $180,696 (the "Purchase Price Note") in substantially the form attached hereto as Schedule C payable from Purchase Price Note Available Tax Increments in accordance with the terms of this paragraph. The Purchase Price Note shall accrue interest at the rate of 3.00% per annum. Commencing August 1, 2025, on each February 1 and August 1 thereafter to and including the termination date of the TIF District, or, if the first day of either February 1 or August I should not be a Business Day, the next succeeding Business Day (the "Purchase Price Note Payment Dates") the Authority will credit against the principal amount of the Developer's Purchase Price Note plus accrued interest thereon at the rate of 3% per annum, the Purchase Price Note Available Tax Increments. On the termination date of the TIF District, the Authority will forgive the outstanding balance of the Purchase Price Note subject to Section 4.3(d). (b) In addition, the Developer shall assume or pay all taxes, special assessments, including certain deferred special assessments in the amount of $43,107, and similar governmental impositions due and payable in the year of Closing and after the Closing Date and all future years. The Developer will pay: (a) the closing fees charged by the Title Company, if any, utilized to close the transaction contemplated by this Article III; (b) fees for title evidence obtained by Developer; (c) title insurance premium costs; (d) the recording fee for the deed transferring title to the Developer; (e) any survey or environmental investigation costs incurred by it; (f) any transfer taxes, recording fees and Well Disclosure fees required to enable the Developer to record the Deed from the Authority under this Agreement; and (g) fees and charges related to the filing of any instrument required to make title marketable or otherwise change the condition of the Development Property. Section 3.3 Representation and As Is Conveyance. (a) In recognition of the significant economic contributions which the Authority is making to develop the Minimum Improvements by providing the tax increment assistance, the Developer shall take the conveyance of Development Property on an "AS IS" "WHERE IS" basis, with all faults and defects, without any warranties, express or implied, except such representations and warranties as specifically set forth in this Agreement, and the Developer waives any claims against the Authority, the City and their governing bodies' members, officers, agents, including the 9 MN 1 90\170\778717.v6 independent contractors, consultants and legal counsel and employees thereof (collectively the "Indemnified Parties"), for indemnification, contribution, reimbursement or other payments arising under federal and state law and the common law relating to environmental or any other condition of Development Property. (b) The Authority makes no representations concerning nor shall have any responsibility or obligation to undertake any cleanup or remediation on the Development Property. If the Developer does not terminate this Agreement pursuant to Section 3.5(a) hereof, following delivery of the Deed, the Developer agrees to remediate any environmental contamination or pollution on the Development Property that may be required by law. (c) The Authority has no obligation to produce any evidence of title. The Developer will obtain a commitment for an owner's title insurance policy issued by the Title Company naming Developer as the proposed owner -insured of the Development Property (the "Commitment") in accordance with Section 3.4 hereof and review copies of all documents referred to in the Commitment. (d) The Developer is hereby granted the right to enter upon and inspect, analyze and test the Development Property for all reasonable purposes, including conducting soil tests upon 24 hours' notice to the Authority. The Developer shall pay for the cost of all investigations of the Development Property which are ordered by Developer for purposes of conducting its own investigations of the Development Property. Developer hereby agrees to indemnify and hold the Authority harmless from any claims, damages, costs and liability, including without limitation reasonable attorneys' fees, resulting from entering upon the Development Property or the performing of the analysis, tests or inspections referred to in this section. The Developer's environmental consultant has recommended further Phase II environmental investigations with respect to material deposited on the site; the Authority hereby authorizes such investigations. (e) Without limiting its obligations under Section 8.3 hereof, the Developer agrees to indemnify, defend, and hold harmless the "Indemnified Parties, from any claims or actions to the extent arising out of any claim related to the presence of hazardous substances on the Development Property, or any portion thereof, which either (i) arise out of activities of the Developer on the Development Property or (ii) arise out of hazardous substances, asbestos, petroleum substances, or pollutants, irritants or contaminants brought onto the Development Property by the Developer. In addition, the Developer agrees to release the Indemnified Parties from any and all costs, expenses, losses, liabilities, claims, causes of action, demands, and damages relating to the environmental conditions on the Development Property as of the date of Closing, including without limitation any claim the Developer may have to recover from all or any of the Indemnified Parties any costs or expenses incurred by the Developer in performing any remediation of the Development Property. Nothing in this section will be construed to limit or affect any limitations on liability of the City or Authority under State or federal law, including without limitation Minnesota Statutes, Sections 466.04 and 604.02, as amended. Section 3.4 Title. Within 30 days after the date of this Agreement, the Developer shall obtain a commitment for the issuance of a policy of title insurance for the Development Property. The Developer shall have 20 days from the date of its receipt of such commitment and a current survey of the Development Property to review the state of title (including survey matters) to the 10 MN 1 90\170\778717.v6 Development Property and to provide the Authority with a list of written objections to such title (including survey matters). Objections not made within such time will be deemed waived. The Developer shall have 60 days from the date of such objection to effect a cure; provided, however, that the Developer shall have no obligation to cure any objections, and may inform the Authority of such. In the event that the Developer has failed to obtain a cure of such objections within 60 days after the date hereof, the Developer may (i) by the giving of written notice to the Authority terminate this Agreement, upon the receipt of which this Agreement shall be null and void and neither party shall have any liability hereunder, or (ii) waive any title objections and proceed to Closing. The Authority shall have no obligation to take any action to clear defects in the title to the Development Property. The Authority shall take no actions to encumber title to the Development Property between the date of this Agreement and the deed is delivered to the Developer. The Authority expressly agrees that it will not cause or permit the attachment of any mechanics, attorneys, or other liens to any portion of the Development Property prior to the applicable Closing. The Developer shall take no actions to encumber title to any portion of the Development Property between the date of this Agreement and the time the deed for that portion of the Development Property is delivered to the Developer. The Developer expressly agrees that it will not cause or permit the attachment of any mechanics, attorneys, or other liens to any portion of the Development Property prior to the applicable Closing. Notwithstanding termination of this Agreement prior to any Closing, the Developer is obligated to pay all costs to discharge any encumbrances to any portion of the Development Property attributable to actions of the Developer, its employees, officers, agents or consultants, including without limitation any architect, contractor and or engineer. Section 3.5 Contingencies to Closing on Development Property. (a) Developer's Contingencies. The Developer's obligation to close on the purchase of the Development Property is expressly conditioned upon each of the following contingencies being satisfied or waived: (i) obligations required to be performed by Authority under this Agreement as of the Closing Date, including but not limited to, delivery of all of the Authority's Documents described in Section 3.6(b) hereof, and (ii) the Developer shall have received all necessary rezoning, variances, conditional use permits and other permits, site plan and other approvals needed to permit the construction of the Minimum Improvements; and (iii) the Developer shall have completed such environmental investigation (including soil conditions) with respect to the Development Property as it deems prudent and in its sole discretion shall be satisfied with the results thereof, and (iv) the Developer shall have obtained financing acceptable to the Developer for development of the Minimum Improvements; and 11 MN 1 90\170\778717.v6 (v) on the Closing Date, the Authority shall convey the certain property described in Schedule G (the "Villas Property") to an Affiliate pursuant to the terms of a purchase and development agreement; and (vi) on the Closing Date, the Title Company shall be irrevocably committed to issue to Developer an owner's policy of title insurance with respect to the Development Property in form and substance approved by Developer. (b) Authority's Contingencies. The Authority's obligation to close on the sale of the Development Property is expressly conditioned upon each of the following contingencies being satisfied or waived: (i) Developer shall have performed all of the obligations required to be performed by Developer under this Agreement as of the Closing Date; and (ii) Developer shall have delivered to the Authority all of the Developer's Documents described in Section 3.6(3); and (iii) The Authority shall have approved the sale of the Development Property to the Developer upon satisfaction of all other conditions required by State law; and (iv) The Developer shall have submitted the Construction Plans to the Authority and the Authority shall have approved the Construction Plans pursuant to Section 4.2 hereof; and (v) The Developer shall have received a building permit for the construction of the Minimum Improvements; and (vi) Developer shall have received or the Authority shall have determined that the Developer will receive all necessary rezoning, variances, conditional use permits and other permits, site plan and other approvals needed to permit the construction of the Minimum Improvements including without limitation any needed variances and final Plat or subdivision approval; and (vii) Developer shall have provided evidence that it has financing for development of the Minimum Improvements satisfactory to the Authority in its sole discretion; and (viii) The Authority shall have obtained final Plat approval or obtain the necessary subdivision approvals required for the construction of the Minimum Improvements; and (ix) The Authority shall have determined that the Minimum Improvements to be undertaken by the Developer on the Development Property is in conformance with this Agreement and the development objectives set forth in the Authorizing Resolution; and (c) Authority's and Developer's Options. In the event that any of the foregoing contingencies fail to be satisfied on or before September 30, 2022, the Developer or the Authority, as the case may be, may: 12 MN 1 90\170\778717.v6 (i) terminate this Agreement; or (ii) waive such failure and proceed to close; provided that the contingencies in Section 3.5(a) are solely for the benefit of the Developer and may be waived only by the Developer and the contingencies in Section 3.5(b) are solely for the benefit of the Authority and may be waived only by the Authority; or (iii) the Developer and Authority may mutually agree to extend the Closing Date. Section 3.6 Closing. (a) Time and Place. Subject to the terms and conditions of this Agreement, the Closing on the purchase and sale of the Development Property shall take place on or before the Closing Date and shall take place at such place which is mutually acceptable to the parties. The Authority shall deliver possession of the Development Property on the Closing Date. (b) Authority's Documents. At the Closing, the Authority shall execute, where appropriate, and deliver all of the following "Authority's Documents": (i) The updated plat for the Development Property, fully signed by all required parties and ready to be recorded. (ii) The Deed, in substantially the form as Schedule B attached hereto, properly executed on behalf of the Authority conveying the Development Property to the Developer, together with any other documents reasonably required to be delivered by the Authority. (iii) A transferor's certification stating that Authority is not a "foreign person", "foreign partnership", "foreign trust" or "foreign estate" as those terms are defined in Section 1445 of the Internal Revenue Code, and containing such additional information as may be required thereunder. (iv) A settlement statement consistent with this Agreement. (c) Developer's Documents. At the Closing, the Developer shall execute, where appropriate, and deliver all of the following "Developer's Documents": (i) A sworn construction cost statement executed by the Developer and the general contractor setting forth total Construction Costs of the Minimum Improvements. (ii) Proof of insurance required by this Agreement. (iii) To the extent required and obtainable as of the Closing Date, environmental clearances, subdivision approvals, permits, and any other required governmental approvals for the Minimum Improvements. (iv) An affidavit from Developer indicating on the Closing Date that there are no outstanding, unsatisfied judgments, tax liens or bankruptcies against or involving the 13 MN 1 90\170\778717.v6 Developer; that there has been no skill, labor or material furnished to the Development Property for which payment has not been made or for which mechanic's liens could be filed. (v) Funds sufficient for payment by the Developer at Closing of the recording charges or fees for all documents which are to be placed on record, the fee or charge imposed by any closing agent designated by the Title Company, and any other incidental or related closing costs. (vi) The Construction Documents. (vii) Evidence satisfactory to the Authority that the Developer has sufficient financing to complete the Minimum Improvements. (viii) The Developer's estimate of the total development costs of the Minimum Improvements and sources of revenue to pay such costs and proforma cash flow for the Minimum Improvements. (ix) Such other documents as shall be required to carry out the intent of this Agreement. Section 3.7 Conveyance Subject to Right of Re-entry. The Authority's conveyance of the Development Property to the Developer pursuant to this Agreement will be made subject to a right of reentry for breach of a condition subsequent in favor of the Authority. The condition subsequent is that, barring any Unavoidable Delays, the Developer shall have completed or caused to be completed, not later than July 31, 2023, construction of the foundation of the Minimum Improvements on the Development Property in accordance with permits issued by the City. If Developer fails to satisfy such condition subsequent, the Authority shall provide written notice to the Developer and the Developer shall have 30 days from receipt of the Authority's notice to complete construction of the foundation of the Minimum Improvements. Failure to complete construction in such timeframe shall constitute a breach of the condition subsequent and the Developer shall re - convey the Development Property back to the Authority, without cost to the Authority. If the Developer fails to re -convey the Development Property to the Authority, the Authority may elect to exercise its right of reentry by commencing an action in Wright County District Court to establish the breach of the condition subsequent. If the Authority establishes a breach of the condition subsequent, title to and the right to possession of the Development Property and title to all improvements located thereon reverts to the Authority, without cost to the Authority, and the Developer is not entitled to any compensation from the Authority for the value of the Development Property or any improvements the Developer has made to the Development Property. The Developer must record the Certificate of Release set forth in the Deed in the proper County land records at its expense. Section 3.8. Advance of Purchase Price Note and Other Costs. At Closing, the Authority will forgo receipt of the full fair market value of the Development Property, by accepting the Purchase Price Note from the Developer as partial payment for the Development Property. The total original principal amount of the Purchase Price Note is $180,696. The terms of the Purchase Price Note are described in Section 3.2 hereof. The Authority is pledging Purchase Price Note Available Tax Increment to repayment of the Purchase Price Note. The Developer has no rights or interest in 14 MN 1 90\170\778717.v6 any Tax Increment pledged to the repayment of the Purchase Price Note. The Authority retains the right to use any other Authority funds to prepay the principal of and interest on the Purchase Price Note on any date. Section 3.9. Reimbursement of Public Development Costs, Issuance of TIF Note. The Authority has determined that, in addition to providing the land write down described in Section 3.2, in order to make development of the Minimum Improvements financially feasible, it is necessary to reimburse Developer for a portion of its costs site preparation, public improvements including without limitation parking and sidewalk improvements, costs of construction of the affordable housing units of the Minimum Improvements, and structured parking on the Development Property (the "Public Development Costs") through the issuance of the TIF Note, subject to the terms of this Section. The total principal amount of Public Development Costs subject to reimbursement will not exceed $1,263,531. Public Development Costs in excess of the specified total are the responsibility of the Developer. (a) Conditions for Delivery of TIF Note. To reimburse a portion of the Public Development Costs incurred by Developer, the Authority shall issue and the Developer shall purchase the TIF Note in the maximum principal amount of $1,263,531. The Authority shall issue and deliver the TIF Note upon the occurrence of the following: (i) The Developer having delivered to the Authority evidence of Public Development Costs paid or incurred in at least the principal amount of the Note as well as one or more certificates signed by the Developer's duly authorized representative, containing the following: (A) a statement that each cost identified in the certificate is a Public Development Cost as defined in this Agreement and that no part of such cost has been included in any previous certification; (B) reasonable evidence that each identified Public Development Cost has been paid or incurred by or on behalf of the Developer; and (C) a statement that, to the Developer's knowledge, no uncured Event of Default by the Developer has occurred and is continuing under this Agreement; the Authority may, if not satisfied that the conditions described herein have been met, return any certificate with a statement of the reasons why it is not acceptable and requesting such further documentation or clarification as the Authority may reasonably require; (ii) Developer having delivered to the Authority an investment letter in a form reasonably satisfactory to the Authority. (iii) Developer having received from the Authority a certificate of occupancy for the Minimum Improvements. (b) Terms of TIF Note. The terms of the TIF Note will be substantially in the form shown in Schedule F in the form of the Resolution approving this Agreement and authorizing the TIF Note (the "Authorizing Resolution"), and the TIF Note will be subject to all terms of the Authorizing Resolution, which are incorporated herein by reference. (c) Termination of Right to TIF Note. Notwithstanding anything to the contrary in this Agreement, if the conditions for delivery of the TIF Note are not met by the date five (5) years after certification of the TIF District, the Authority's obligation to deliver the TIF Note shall terminate; provided that the remainder of this Agreement shall remain in full force and effect. 15 MN 1 90\170\778717.v6 (d) Assignment of TIFNote. The Authority acknowledges that the Developer may assign the TIF Note to one or more lenders that provide part of the financing for the construction of the Minimum Improvements. The Authority consents to such an assignment, conditioned upon the satisfaction of the conditions set forth in the Note, the receipt of an investment letter from such third party in a form reasonably acceptable to the Authority and an assignment in a form approved by the Board of Commissioners of the Authority. (e) Qualifications. The Developer understands and acknowledges that the Authority makes no representations or warranties regarding the amount of TIF Note Available Tax Increment, or that revenues pledged to the TIF Note will be sufficient to pay the principal amount of and the interest on the TIF Note. Developer further acknowledges that estimates of Tax Increment prepared by the Authority or its municipal advisors in connection with the TIF District or this Agreement are for the benefit of the Authority, and are not intended as representations on which the Developer may rely. If the Public Development Costs exceed the maximum aggregate principal amount of the TIF Note, such excess is the sole responsibility of Developer. The TIF Note shall be a special and limited obligation of the Authority and not a general obligation of the Authority or the City, and only TIF Note Available Tax Increments shall be used to pay the principal of the TIF Note. (f) Termination of Payments. The Authority's obligation to make payments on the TIF Note on any Payment Date or any date thereafter shall be conditioned upon the requirement that (i) there shall not at that time be an Event of Default that has occurred and is continuing under this Agreement that has not been cured during the applicable cure period, (ii) this Agreement shall not have been terminated pursuant to Section 9.2, and (iii) a certificate of occupancy has been issued for the Project. Section 3.10. No Business Subsidy. The parties agree and understand that the primary purpose of any financial assistance to the Developer under this Agreement is to facilitate development of housing and is therefore not a "business subsidy" within the meaning of Minnesota Statutes, Sections I I6J.993 to 1161995 (the "Business Subsidy Act"). The Developer releases and waives any claim against the Authority and its governing body members, officers, agents, and employees thereof arising from application of the Business Subsidy Act to this Agreement, including without limitation any claim that the Authority failed to comply with the Business Subsidy Act with respect to this Agreement. Section 3.11. Payment of Administrative Costs. The Authority acknowledges that Developer has deposited with the Authority $10,000. The Authority will use such deposit to pay "Administrative Costs," which term means out of pocket costs incurred by the Authority together with staff costs of the Authority, all attributable to or incurred in connection with the negotiation and preparation of this Agreement, the TIF Plan, and other documents and agreements in connection with the development of the Development Property. At Developer's request, but no more often than monthly, the Authority will provide Developer with a written report including invoices, time sheets or other comparable evidence of expenditures for Administrative Costs and the outstanding balance of funds deposited. If at any time the Authority determines that the deposit is insufficient to pay Administrative Costs, the Developer is obligated to pay such shortfall within twenty (20) days after receipt of a written notice from the Authority containing evidence of the unpaid costs. If any balance of funds deposited remains upon issuance of the Certificate of Completion pursuant to Section 4.4 of this Agreement, the Authority shall promptly return 16 MN 1 90\170\778717.v6 such balance to Developer; provided that Developer remains obligated to pay subsequent Administrative Costs related to any amendments to this Agreement requested by Developer. Upon termination of this Agreement in accordance with its terms, the Developer remains obligated under this section for Administrative Costs. 17 MN 1 90\170\778717.v6 ARTICLE IV Construction of Minimum Improvements Section 4.1. Construction of Minimum Improvements. The Developer agrees that it will construct the Minimum Improvements on the Development Property, in accordance with the approved Construction Plans, and will operate and maintain, preserve and keep the Minimum Improvements or cause the Minimum Improvements to be maintained, preserved and kept with the appurtenances and every part and parcel thereof, in good repair and condition. Section 4.2 Construction Plans. (a) Before commencement of construction of the Minimum Improvements, the Developer shall submit the Construction Plans to the Authority. The Construction Plans shall provide for the construction of the Minimum Improvements, as applicable, and shall be in conformity with this Agreement and all applicable State and local laws and regulations. The Authority will approve such Construction Plans in writing if. (i) such Construction Plans conform to the terms and conditions of this Agreement; (ii) such Construction Plans conform to all applicable federal, state and local laws, ordinances, rules and regulations; (iii) such Construction Plans are adequate to provide for construction of the Minimum Improvements; and (iv) no Event of Default has occurred and remains uncured. No approval by the Authority shall relieve the Developer of the obligation to comply with the terms of this Agreement, applicable federal, state and local laws, ordinances, rules and regulations, or to construct the Minimum Improvements in accordance therewith. No approval by the Authority shall constitute a waiver of an Event of Default or waiver of any State or City building or other code requirements that may apply. If approval of the Construction Plans is requested by the Developer in writing at the time of submission, such Construction Plans shall be deemed approved unless rejected in writing by the Authority, in whole or in part. Such rejections shall set forth in detail the reasons therefor, and shall be made within 30 days after the date of their receipt by the Authority. If the Authority rejects any Construction Plans in whole or in part, the Developer shall submit new or corrected Construction Plans within 30 days after written notification to the Developer of the rejection. The provisions of this Section relating to approval, rejection and resubmission of corrected Construction Plans shall continue to apply until the Construction Plans have been approved by the Authority. The Authority's approval shall not be unreasonably withheld. Said approval shall constitute a conclusive determination that the Construction Plans (and the Minimum Improvements, constructed in accordance with said plans) comply to the Authority's satisfaction with the provisions of this Agreement relating thereto. (b) The Developer hereby waives any and all claims and causes of action whatsoever resulting from the review of the Construction Plans by the Authority and/or any changes in the Construction Plans requested by the Authority. Neither the Authority nor any employee or official of the Authority shall be responsible in any manner whatsoever for any defect in the Construction Plans or in any work done pursuant to the Construction Plans, including changes requested by the Authority. (c) If the Developer desires to make any material change in the Construction Plans after their approval by the Authority, the Developer shall submit the proposed change to the Authority for 18 MN 1 90\170\778717.v6 its approval. If the Construction Plans, as modified by the proposed change, conform to the requirements of this Section with respect to such previously approved Construction Plans, the Authority shall approve the proposed change and notify the Developer in writing of its approval. Such change in the Construction Plans shall, in any event, be deemed approved by the Authority unless rejected, in whole or in part, by written notice by the Authority to the Developer, setting forth in detail the reasons therefor. Such rejection shall be made within 30 days after receipt of the notice of such change. The Authority's approval of any such change in the Construction Plans will not be unreasonably withheld. Nothing in this paragraph will relieve the Developer of the obligation to comply with any City ordinances or procedures regarding changes in Construction Plans, and any approvals by the Authority hereunder will not constitute approval by any Authority officials regarding any City requirement related to construction of the Minimum Improvements. (d) The approval of the Construction Plans, or any proposed amendment to the Construction Plans, by the Authority does not constitute a representation or warranty by the Authority that the Construction Plans or the Minimum Improvements comply with any applicable building code, health or safety regulation, zoning regulation, environmental law, labor law or regulation, or other law or regulation, or that the Minimum Improvements will meet the qualifications for issuance of a certificate of occupancy, or that the Minimum Improvements will meet the requirements of the Developer or any other users of the Minimum Improvements. Approval of the Construction Plans, or any proposed amendment to the Construction Plans, by the Authority will not constitute a waiver of an Event of Default. Nothing in this Agreement shall be construed to relieve the Developer of its obligations to receive any required approval of the Construction Plans from any City department. Section 4.3 Commencement and Completion of Construction. (a) Subject to Unavoidable Delays, the Developer must commence construction of the Minimum Improvements not later than April 30, 2023. The construction of the Minimum Improvements shall be deemed to be commenced when physical improvements have been made to the Development Property, including grading, excavation, or other physical site preparation work (in accordance with a permit issued by the City). (b) Subject to Unavoidable Delays, the Developer must substantially complete construction of all Minimum Improvements by December 31, 2024. The construction of the Minimum Improvements will be considered substantially complete on the date when (i) the Developer has received a temporary or permanent certificate of occupancy issued by the City for the Minimum Improvements, as applicable, and (ii) the Authority has determined the Minimum Improvements have been constructed substantially in accordance with the approved Construction Plans as provided in Section 4.2. Completion shall be evidenced by a Certificate of Completion as described in Section 4.4. (c) Developer agrees for itself, its successors and assigns, and every successor in interest to the Development Property, or any part thereof, that the Developer, and such successors and assigns, shall promptly begin and diligently prosecute to completion the development of the Development Property through the construction of the Minimum Improvements thereon, and that such construction shall in any event be commenced and completed within the period specified in this Section 4.3. Subsequent to conveyance of the Development Property, or any part thereof, to the Developer, and until construction of the Minimum Improvements has been completed, the Developer 19 MN 1 90\170\778717.v6 shall make reports, in such detail and at such times as may reasonably be requested by the Authority, as to the actual progress of the Developer with respect to such construction. (d) If the Developer does not complete construction of the Minimum Improvements in accordance with the schedule set forth in Section 4.3 hereof, the Developer shall repay the principal amount of the Purchase Price Note in full. The Developer shall pay the Purchase Price Note within 30 days of written request from the Authority. Section 4.4 Certificate of Completion. At the request of the Developer, the Authority will issue a Certificate of Completion in accordance with this Section. The Developer may notify the Authority when construction of the Minimum Improvements has been substantially completed. The Authority shall, within 20 days after such notification, inspect the Minimum Improvements in order to determine whether the Minimum Improvements have been substantially completed and constructed in accordance with all local, state and federal laws and regulations (including without limitation environmental, labor, zoning, building code, housing code, and public health laws and regulations), and any applicable permits and in substantial conformity with this Agreement and the final Construction Plans approved by the Authority. Section 4.5. Records and Reports. (a) The Authority, through any authorized representatives, shall have the right at all reasonable times after reasonable written notice to inspect, examine and copy all books and records of Developer relating to the Minimum Improvements that are reasonably relevant to the Developer's obligations under this Agreement. Such records shall be kept and maintained by Developer through the Termination Date. (b) Upon request, the Developer also agrees to submit to the Authority written reports so as to allow the Authority to remain in compliance with reporting requirements under state statutes. Section 4.6. Income Limits. (a) The Authority and the Developer understand and agree that the TIF District will constitute a "housing district" under Section 469.174, subdivision 11 of the TIF Act. The Developer covenants that, for the duration of the TIF District, it will comply with all income requirements for a qualified residential rental project as defined in Section 142(d) of the Internal Revenue Code of 1986, as amended. Specifically, the Developer agrees to reserve at least 40% of the units of the Minimum Improvements for families with incomes at or below 60% of area median income in the County, adjusted for family size. (b) On or before February 2 of each year for the duration of the TIF District, the Developer shall submit evidence in substantially the form in Schedule E, showing that the Minimum Improvements meet the relevant income requirements. The parties agree and understand that the Developer may retain a manager (the "Manager") who will review such evidence and will certify to the Authority that the TIF District remains a housing district under the TIF Act. Developer is responsible for any costs incurred to compensate the Manager (or any successor) for such activities. (c) If the Authority receives notice from the Manager, if any, the State department of 20 MN 1 90\170\778717.v6 revenue, the State auditor, any Tax Official or any court of competent jurisdiction that the TIF District does not qualify as a "housing district," such event shall be deemed an Event of Default under this Agreement and the Authority shall immediately stop payments of Available Tax Increment to pay principal of and interest on the TIF Note. In addition to any remedies available to the Authority under Article IX hereof, the Developer shall indemnify, defend, and hold harmless the Authority for any damages or costs resulting therefrom. (The remainder of this page is intentionally left blank.) 21 MN 1 90\170\778717.v6 ARTICLE V IncnranrP Section 5.1. Insurance. (a) The Developer will provide and maintain at all times during the process of constructing the Minimum Improvements an All Risk Broad Form Basis Insurance Policy and, from time to time during that period, at the request of the Authority, furnish the Authority with proof of payment of premiums on policies covering the following: (i) Builder's risk insurance, written on the so-called "Builder's Risk -- Completed Value Basis," in an amount equal to one hundred percent (100%) of the insurable value of the Minimum Improvements at the date of completion, and with coverage available in nonreporting form on the so-called "all risk" form of policy. The interest of the Authority shall be protected in accordance with a clause in form and content satisfactory to the Authority; (ii) Commercial general liability insurance (including operations, contingent liability, operations of subcontractors, completed operations, and contractual liability insurance) together with an Owner's Policy with limits against bodily injury and property damage of not less than $1,000,000 for each occurrence (to accomplish the above -required limits, an umbrella excess liability policy may be used). The Authority shall be listed as an additional insured on the policy; and (iii) Workers' compensation insurance, with statutory coverage, provided that the Developer may be self-insured with respect to all or any part of its liability for workers' compensation. (b) Upon completion of construction of the Minimum Improvements and prior to the Termination Date, the Developer shall maintain, or cause to be maintained, at its cost and expense, and from time to time at the request of the Authority shall furnish proof of the payment of premiums on, insurance as follows: (i) Insurance against loss and/or damage to the Minimum Improvements under a policy or policies covering such risks as are ordinarily insured against by similar businesses. (ii) Commercial general public liability insurance, including personal injury liability (with employee exclusion deleted), against liability for injuries to persons and/or property, in the minimum amount for each occurrence and for each year of $1,000,000, and shall be endorsed to show the City and Authority as additional insureds. (iii) Such other insurance, including workers' compensation insurance respecting all employees of the Developer, in such amount as is customarily carried by like organizations engaged in like activities of comparable size and liability exposure; provided that the 22 MN 1 90\170\778717.v6 Developer may be self-insured with respect to all or any part of its liability for workers' compensation. (c) All insurance required in Article V of this Agreement shall be taken out and maintained in responsible insurance companies selected by the Developer that are authorized under the laws of the State to assume the risks covered thereby. Upon request, the Developer will deposit annually with the Authority policies evidencing all such insurance, or a certificate or certificates or binders of the respective insurers stating that such insurance is in force and effect. Unless otherwise provided in this Article V of this Agreement each policy shall contain a provision that the insurer shall not cancel nor modify it in such a way as to reduce the coverage provided below the amounts required herein without giving written notice to the Developer and the Authority at least thirty (30) days before the cancellation or modification becomes effective. In lieu of separate policies, the Developer may maintain a single policy, blanket or umbrella policies, or a combination thereof, having the coverage required herein, in which event the Developer shall deposit with the Authority a certificate or certificates of the respective insurers as to the amount of coverage in force upon the Minimum Improvements. (d) The Developer agrees to notify the Authority immediately in the case of damage exceeding $250,000 in amount to, or destruction of, the Minimum Improvements or any portion thereof resulting from fire or other casualty. In such event the Developer will forthwith repair, reconstruct, and restore the Minimum Improvements to substantially the same or an improved condition or value as it existed prior to the event causing such damage and, to the extent necessary to accomplish such repair, reconstruction, and restoration, the Developer will apply the net proceeds of any insurance relating to such damage received by the Developer to the payment or reimbursement of the costs thereof. The Developer shall complete the repair, reconstruction, and restoration of the Minimum Improvements, regardless of whether the net proceeds of insurance received by the Developer for such purposes are sufficient to pay for the same. Any net proceeds remaining after completion of such repairs, construction, and restoration shall be the property of the Developer. (e) In lieu of the Developer's obligation to reconstruct the Minimum Improvements as set forth in this Section, the Developer shall have the option of terminating the TIF Note and paying to the Authority an amount that, in the opinion of the Authority and its fiscal consultant, is sufficient to pay in full the outstanding principal and accrued interest on the Purchase Price Note. (f) The Developer and the Authority agree that all of the insurance provisions set forth in this Article V shall terminate upon the termination of this Agreement. Section 5.2. Subordination. Notwithstanding anything to the contrary contained in this Article V, the rights of the Authority with respect to the receipt and application of any proceeds of insurance shall, in all respects, be subject and subordinate to the rights of any lender under a Mortgage approved pursuant to Article VII of this Agreement. 23 MN 1 90\170\778717.v6 ARTICLE VI Delinauent Taxes and Review of Taxes Section 6.1. Right to Collect Delinquent Taxes. The Developer agrees for itself, its successors, and assigns, that in addition to the obligation pursuant to statute to pay real estate taxes, it is also obligated by reason of this Agreement to pay before delinquency all real estate taxes assessed against the Development Property and the Minimum Improvements. The Developer acknowledges that this obligation creates a contractual right on behalf of the Authority through the Termination Date to sue the Developer or its successors and assigns to collect delinquent real estate taxes and any penalty or interest thereon and to pay over the same as a tax payment to the county auditor. In any such suit in which the Authority is the prevailing party, the Authority shall also be entitled to recover its costs, expenses, and reasonable attorney fees. Section 6.2. Review of Taxes. The Developer agrees that prior to the Termination Date, it will not cause a reduction in the real property taxes paid in respect of the Development Property through: (a) willful destruction of the Minimum Improvements or any part thereof; (b) willful refusal to reconstruct damaged or destroyed property pursuant to Section 5.1 of this Agreement, except as otherwise provided in Section 5.1(e); or (c) engaging in any other proceedings, whether legal, administrative or equitable, with any administrative body in the County or State or court of the State or federal government to reduce the amount of real estate or other taxes assessed against the Development Property or the Minimum Improvements. The Developer also agrees that it will not, prior to the Termination Date, apply for a deferral of property tax on the Development Property pursuant to any law, or transfer or permit transfer of the Development Property to any entity whose ownership or operation of the property would result in the Development Property being exempt from real estate taxes under State law. (The remainder of this page is intentionally left blank.) 24 MN 190\ 170\778717.v6 ARTICLE VII Financing Section 7.1. Financing. (a) Before conveyance of the Development Property, the Developer shall submit to the Authority evidence of one or more commitments for mortgage financing which, together with committed equity for such construction, is sufficient for the construction of the Minimum Improvements. Such commitments may be submitted as short term financing, long term mortgage financing, a bridge loan with a long-term take-out financing commitment, or any combination of the foregoing. (b) If the Authority finds that the mortgage financing is sufficiently committed and adequate in amount to provide for the construction of the Minimum Improvements, then the Authority shall notify the Developer in writing of its approval. Such approval shall not be unreasonably withheld and either approval or rejection shall be given within thirty (30) days from the date when the Authority is provided the evidence of financing. A failure by the Authority to respond to such evidence of financing shall be deemed to constitute an approval hereunder. If the Authority rejects the evidence of financing as inadequate, it shall do so in writing specifying the basis for the rejection. In any event the Developer shall submit adequate evidence of financing within thirty (30) days after such rejection. Section 7.2. Authority's Option to Cure Default on Mortgagee. In the event that there occurs a default under any Mortgage authorized pursuant to Article VII of this Agreement, the Developer shall cause the Authority to receive copies of any notice of default received by the Developer from the holder of such Mortgage. Thereafter, the Authority shall have the right, but not the obligation, to cure any such default on behalf of the Developer within such cure periods as are available to the Developer under the Mortgage documents. Section 7.3. Subordination and Modification for the Benefit of Mortgagee. In order to facilitate the Developer obtaining financing for purchase of the Development Property and for construction of the Minimum Improvements according to the Construction Plans, the Authority agrees to subordinate certain rights under this Agreement, provided that (a) such subordination shall be subject to such reasonable terms and conditions as the Authority and the holder of any mortgage mutually agree in writing after approval by the Board of Commissioners of the Authority, and (b) the Authority's obligation to subordinate is contingent on the Authority's approval of the financing in accordance with Section 7.1 hereof. 25 MN 190\ 170\778717.v6 ARTICLE VIII Prohibitions Aaainst Assignment and Transfer; Indemnification Section 8.1. Representation as to Development. The Developer represents and agrees that its purchase of the Development Property, and its other undertakings pursuant to the Agreement, are, and will be used, for the purpose of development of the Development Property and not for speculation in land holding. Section 8.2. Prohibition Against Developer's Transfer of Property and Assignment of Agreement. The Developer represents and agrees that until the Termination Date: (a) Except only by way of security for, and only for and the purpose of obtaining financing necessary to enable the Developer or any successor in interest to the Development Property, or any part thereof, to perform its obligations with respect to making the Minimum Improvements under the Agreement, and any other purpose authorized by this Agreement, the Developer has not made or created and will not make or create or suffer to be made or created any total or partial sale, assignment, conveyance, or lease, or any trust or power, or transfer in any other mode or form of or with respect to this Agreement or the Development Property or any part thereof or any interest therein, or any contract or agreement to do any of the same, to any person or entity (collectively, a "Transfer"), without the prior written approval of the Authority's board of commissioners, which may not be unreasonably withheld, subject to Section 8.2(b). The term "Transfer" does not include (i) encumbrances made or granted by way of security for, and only for, the purpose of obtaining construction, interim or permanent financing necessary to enable the Developer or any successor in interest to the Development Property or to construct the Minimum Improvements or component thereof; (ii) any lease, license, easement or similar arrangement entered into in the ordinary course of business related to operation of the Minimum Improvements; or (iii) an assignment or other transfer to an Affiliate or that is otherwise permitted under Section 10.13 of this Agreement. (b) In the event the Developer, upon Transfer of the Development Property, seeks to be released from its obligations under this Agreement, the Authority shall be entitled to require, except as otherwise provided in this Agreement, as conditions to any such Transfer that: (i) Any proposed transferee shall have the qualifications and financial responsibility, in the reasonable judgment of the Authority, necessary and adequate to fulfill the obligations undertaken in this Agreement and the Purchase Price Note by the Developer. (ii) Any proposed transferee, by instrument in writing satisfactory to the Authority and in form recordable among the land records, shall, for itself and its successors and assigns, and expressly for the benefit of the Authority, have expressly assumed all of the obligations of the Developer under this Agreement (including the Purchase Price Note) and agreed to be subject to all the conditions and restrictions to which the Developer is subject; provided, however, that the fact that any transferee of, or any other successor in interest whatsoever to, the Development Property, or any part thereof, shall not, for whatever reason, have assumed such obligations or so agreed, and shall not (unless and only to the extent otherwise 26 MN 1 90\170\778717.v6 specifically provided in this Agreement or agreed to in writing by the Authority) deprive the Authority of any rights or remedies or controls with respect to the Development Property or any part thereof or the construction of the Minimum Improvements; it being the intent of the parties as expressed in this Agreement that (to the fullest extent permitted at law and in equity and excepting only in the manner and to the extent specifically provided otherwise in this Agreement) no transfer of, or change with respect to, ownership in the Development Property or any part thereof, or any interest therein, however consummated or occurring, and whether voluntary or involuntary, shall operate, legally or practically, to deprive or limit the Authority of or with respect to any rights or remedies on controls provided in or resulting from this Agreement with respect to the Minimum Improvements that the Authority would have had, had there been no such transfer or change. In the absence of specific written agreement by the Authority to the contrary, no such transfer or approval by the Authority thereof shall be deemed to relieve the Developer, or any other party bound in any way by this Agreement or otherwise with respect to the construction of the Minimum Improvements, from any of its obligations with respect thereto. (iii) Any and all instruments and other legal documents involved in effecting the transfer of any interest in this Agreement and the Purchase Price Note or the Development Property governed by this Article VIII, shall be in a form reasonably satisfactory to the Authority. (iv) The Developer and its transferees shall comply with such other conditions as the Authority may reasonably require in order to achieve and safeguard the purposes of the TIF Act and this Agreement. (v) The Developer agrees to pay all reasonable costs and expenses, including fees of legal counsel retained by the Authority, to review the documents submitted to the Authority in connection with any such transfer. In the event the foregoing conditions are satisfied then the Developer shall be released from its obligation under this Agreement. Section 8.3. Release and Indemnification Covenants. (a) The Developer releases from and covenants and agrees that the Indemnified Parties shall not be liable for and agrees to indemnify and hold harmless the Authority and the governing body members, officers, agents and employees thereof against any loss or damage to property or any injury to or death of any person occurring at or about or resulting from any defect in the Minimum Improvements or the Development Property. (b) Except for any willful misrepresentation or any willful or wanton misconduct of the Indemnified Parties, and except for any breach by any of the Indemnified Parties of their obligations under this Agreement, the Developer agrees to protect and defend the Indemnified Parties, now or forever, and further agrees to hold the aforesaid harmless from any claim, demand, suit, action or other proceeding whatsoever by any person or entity whatsoever arising or purportedly arising from 27 MN 1 90\170\778717.v6 this Agreement, or the transactions contemplated hereby or the acquisition, construction, installation, ownership, and operation of the Minimum Improvements. (c) Except for any willful misrepresentation or any willful or wanton misconduct of the Indemnified Parties, and except for any breach by any of the Indemnified Parties of their obligations under this Agreement, the Indemnified Parties shall not be liable for any damage or injury to the persons or property of the Developer or its officers, agents or employees or any other person who may be about the Development Property or Minimum Improvements. (d) All covenants, stipulations, promises, agreements and obligations of the Authority contained herein shall be deemed to be the covenants, stipulations, promises, agreements and obligations of the Authority and not of any governing body member, officer, agent or employee of the Authority or the City in the individual capacity thereof. (The remainder of this page is intentionally left blank.) 28 MN 1 90\170\778717.v6 ARTICLE IX Events of Default Section 9.1. Events of Default Defined. The following shall be "Events of Default" under this Agreement, and the term "Event of Default" shall mean, whenever it is used in this Agreement, any one or more of the following events, after the non -defaulting party provides sixty (60) days' written notice to the defaulting party of the event, but only if the event has not been cured within said sixty (60) days or, if the event is by its nature incurable within sixty (60) days, the defaulting party does not, within such sixty (60) day period, provide assurances reasonably satisfactory to the party providing notice of default that it is proceeding with due diligence to cure such default and the event will be cured as soon as reasonably possible: (a) any failure by either party to this Agreement to observe or perform any material covenant, condition, obligation or agreement on its part to be observed or performed under this Agreement or under any other agreement entered into between the Developer and the Authority in connection with development of the Development Property; (b) any default by Developer under a Mortgage, if any, that entitles the mortgagee to foreclose the Mortgage; and (c) failure by the Developer to timely pay any ad valorem real property taxes assessed with respect to the Development Property. Section 9.2. Remedies on Default. Whenever any Event of Default referred to in Section 9.1 of this Agreement occurs, the non -defaulting party may exercise its rights under this Section 9.2: (a) Suspend its performance under this Agreement until it receives assurances that the defaulting party will cure its default and continue its performance under this Agreement. (b) The Authority may cancel and rescind or terminate this Agreement and/or the TIF Note. (c) The Authority may suspend its performance under this Agreement and the TIF Note. Interest on the TIF Note shall not accrue during the period of any suspension of payment. (d) The Authority may demand that the Developer immediately repay the outstanding principal balance of and interest on the Purchase Price Note. (e) The Authority may take whatever action, including legal, equitable or administrative action, which may appear necessary or desirable to collect any payments due under this Agreement, or to enforce performance and observance of any obligation, agreement, or covenant under this Agreement. The Authority agrees that any mortgagee of the Development Property will have the right, but not the obligation, to cure any default by Developer and any such cure will be deemed to have 29 MN 1 90\170\778717.v6 been made by Developer. Section 9.3. No Remedy Exclusive. No remedy herein conferred upon or reserved to the Authority or Developer is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. In order to entitle the Authority to exercise any remedy reserved to it, it shall not be necessary to give notice, other than such notice as may be required in this Article IX. Section 9.4. No Additional Waiver Implied by One Waiver. In the event any agreement contained in this Agreement should be breached by either party and thereafter waived by the other party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other concurrent, previous or subsequent breach hereunder. (The remainder of this page is intentionally left blank.) 30 MN 1 90\170\778717.v6 ARTICLE X Additional Provisions Section 10.1. Conflict of Interests; Authority Representatives Not Individually Liable. The Authority and the Developer, to the best of their respective knowledge, represent and agree that no member, official, or employee of the Authority shall have any personal interest, direct or indirect, in this Agreement, nor shall any such member, official, or employee participate in any decision relating to this Agreement which affects his personal interests or the interests of any corporation, partnership, or association in which he is, directly or indirectly, interested. No member, official, or employee of the Authority shall be personally liable to the Developer, or any successor in interest, in the event of any default or breach by the Authority or County or for any amount which may become due to the Developer or successor or on any obligations under the terms of this Agreement. Section 10.2. Equal Employment Opportunity. The Developer, for itself and its successors and assigns, agrees that during the construction of the Minimum Improvements provided for in this Agreement it will comply with all applicable federal, state, and local equal employment and non- discrimination laws and regulations. Section 10.3. Restrictions on Use. The Developer agrees that until the Termination Date, the Developer, and its successors and assigns, shall use the Development Property for the operation of the Minimum Improvements for uses described in the definition of such term in this Agreement, and shall not discriminate upon the basis of race, color, creed, sex or national origin in the sale, lease, or rental or in the use or occupancy of the Development Property or any improvements erected or to be erected thereon, or any part thereof. Section 10.4. Provisions Not Merged With Deed. None of the provisions of this Agreement are intended to or shall be merged by reason of any deed transferring any interest in the Development Property and any such deed shall not be deemed to affect or impair the provisions and covenants of this Agreement. Section 10.5. Titles of Articles and Sections. Any titles of the several parts, Articles, and Sections of this Agreement are inserted for convenience of reference only and shall be disregarded in construing or interpreting any of its provisions. Section 10.6. Notices and Demands. Except as otherwise expressly provided in this Agreement, a notice, demand, or other communication under this Agreement by either party to the other shall be sufficiently given or delivered if it is dispatched by registered or certified mail, postage prepaid, return receipt requested, or delivered personally; and (a) in the case of the Developer, is addressed to or delivered personally to the Developer at 7730 Laredo Drive, Unit 446, Chanhassen, MN 55317 and (b) in the case of the Authority, is addressed to or delivered personally to the Authority at 505 Walnut Street, Suite 1, Monticello, Minnesota 55362, Attn: Executive Director; or at such 31 MN 1 90\170\778717.v6 other address with respect to either such party as that parry may, from time to time, designate in writing and forward to the other as provided in this Section. Section 10.7. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same instrument. Section 10.8. Recording. The Authority may record this Agreement and any amendments thereto with the Wright County recorder. The Developer shall pay all costs for recording. Section 10.9. Amendment. This Agreement may be amended only by written agreement approved by the Authority and the Developer. Section 10.10. AuthorityApprovals. Unless otherwise specified, any approval required by the Authority under this Agreement may be given by the Authority Representative as determined by the Authority in their sole discretion. Section 10.11. Termination. This Agreement terminates on the Termination Date. Upon termination of this Agreement, the Authority shall promptly execute any reasonable documents necessary to remove this Agreement from the title records of the Development Property. Notwithstanding the foregoing, the Developer's obligations under Sections 3.3(e), 8.3 and 3.11 shall survive termination. Section 10.12. Choice of Law and Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota. Any disputes, controversies, or claims arising out of this Agreement shall be heard in the state or federal courts of Minnesota, and all parties to this Agreement waive any objection to the jurisdiction of these courts, whether based on convenience or otherwise. Section 10.13. Developer's Right to Assign this Agreement at or before Closing. The Authority agrees that Headwaters Development LLC may assign or otherwise transfer its rights under this Agreement, or its right to receive the conveyance of the Development Property at the Closing, to any Affiliate of Headwaters Development LLC, or any other entity in which the direct or indirect owners of Headwaters Development LLC own a material interest, without the Authority's consent provided that the Developer must provide a signed copy of an assignment and assumption agreement between the Developer and the new owner whereby the new owner agrees to comply with all provisions of this Agreement (the "Assignment"). If the Development Property is conveyed at the Closing to such an affiliate of Headwaters Development LLC, upon delivery of the Assignment to the Authority, Headwaters Development LLC will be released from all obligations and liabilities of the "Developer" under this Agreement, and the transferee of the Development Property will be solely liable for the obligations and liabilities of the Developer. 32 MN 1 90\170\778717.v6 IN WITNESS WHEREOF, the Authority has caused this Agreement to be duly executed in its name and behalf and its seal to be hereunto duly affixed and the Developer has caused this Agreement to be duly executed in its name and behalf on or as of the date first above written. CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY By Its President By Its Executive Director STATE OF MINNESOTA ) SS. COUNTY OF WRIGHT ) The foregoing instrument was acknowledged before me this day of , 2022, by and , the President and Executive Director of the City of Monticello Economic Development Authority, a public body corporate and politic, on behalf of the Authority. Notary Public S-1 MN 1 90\170\778717.v6 HEADWATERS DEVELOPMENT LLC, a Minnesota limited liability company LOW STATE OF MINNESOTA ) SS. COUNTY OF ) Its The foregoing instrument was acknowledged before me this day of , 2022 by , the of Headwaters Development LLC, a Minnesota limited liability company, on behalf of the company. Notary Public S-1 MN 1 90\170\778717.v6 SCHEDULE A Development Property The real property in the City of Monticello, County of Wright, State of Minnesota, legal described as follows: Lot 1, Block 5, Country Club Manor First Addition A-1 MN 1 90\170\778717.v6 DEED TAX DUE: $ ECRV: (month/day/year) SCHEDULE B FORM OF QUIT CLAIM DEED op 3 inches reserved for recordi QUIT CLAIM DEED DATE: _ FOR VALUABLE CONSIDERATION, City of Monticello Economic Development Authority (insert name of Grantor) a public body corporate and politic under the laws of Minnesota ("Grantor"), hereby conveys and quitclaims to (insert name of Grantee) a Minnesota limited liability company under the laws of Minnesota, ("Grantee"), real property in Wright County, Minnesota, legally described as follows: Lot 1, Block 5, Country Club Manor First Addition Check here if all or part of the described real property is Registered (Torrens) ❑ together with all hereditaments and appurtenances and subject to the Right of Re -Entry for Breach of Condition Subsequent in favor of Grantor which is described on Exhibit A. Check applicable box: ❑ The Seller certifies that the Seller does not know of any wells on the described property. ❑ A well disclosure certificate accompanies this document (If electronically filed, insert WDC number: ). ❑ I am familiar with the property described in this instrument and I certify that the status and number of wells on the described real property have not changed since the last previously filed well disclosure certificate. B-1 MN190\170\778717.v6 City of Monticello Economic Development Authority By: By: Steve Johnson Its: President Jim Thares Its: Executive Director State of Minnesota, County of WRIGHT This instrument was acknowledged before me on , 20 by Steve Johnson, as President and by Jim Thares, as Executive Director of the City of Monticello Economic Development Authority (the "Authority"), a public body corporate and politic under the Constitution and laws of the State of Minnesota, on behalf of the Authority. Notary Public THIS INSTRUMENT WAS DRAFTED BY: TAX STATEMENTS FOR THE REAL PROPERTY (insert name and address) DESCRIBED IN THIS INSTRUMENT SHOULD BE SENT TO: Kennedy & Graven, Chartered (GAF) (insert name and address of Grantee to whom tax 150 South Fifth Street, Suite 700 statements should be sent) Minneapolis, MN 55402 c/o Headwaters Development LLC 7730 Laredo Dr., Unit 446 Chanhassen, MN 55317 B-2 MN190\170\778717.v6 EXHIBIT A TO QUIT CLAIM DEED EXECUTED BY THE CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY, GRANTOR, IN FAVOR OF LLC, GRANTEE. The City of Monticello Economic Development Authority (the "Grantor") is conveying the property described in the attached Quit Claim Deed (the "Development Property") to LLC ("Grantee") subject to a right of re-entry for breach of conditions subsequent in favor of Grantor. The condition subsequent (such agreement, as the same may be modified or amended, the "Development Agreement") (capitalized terms utilized herein and not separately defined shall have the meanings ascribed to them in the Development Agreement) is that barring any Unavoidable Delays, the Developer shall have completed, by , 2022, construction of the foundation of the Minimum Improvements (as those terms are defined in the Development Agreement) on the Development Property in accordance with permits issued by the Grantor. If, solely as a result of the City's own willful misconduct, the City takes more than 30 days to review the Developer's complete request for a building permit, the date in the preceding sentence shall be extended by the number of days in excess of 30 that it takes the City to issue a building permit. If the Grantee breaches the condition subsequent, and does not cure such breach within the period and in the manner provided in the Development Agreement, the Grantee shall re -convey the Development Property to the Grantor. If the Grantee fails to re -convey the Development Property to the Grantor, the Grantor may elect to exercise its right of reentry by commencing an action in Wright County District Court to establish the breach of the condition subsequent. If the Grantor exercises its right of reentry and establishes a breach of the condition subsequent, title to and the right to possession of the Development Property and title to all improvements located thereon reverts to the Grantor, and the Grantee is not entitled to any compensation from the City or the Grantor for the value of the Development Property or any improvements the Grantee has made thereto except as specifically provided in the Development Agreement. The Grantee shall notify the Grantor when the Grantee has completed, or caused to be completed, construction of the foundation of the Minimum Improvements and the Commercial Minimum Improvements on the Development Property in accordance with permits issued by the Grantor. The Grantor shall, within 20 days after such notification, inspect the Development Property in order to determine whether the Grantee has completed construction of the foundation of the Minimum Improvements in accordance with permits issued by the Grantor. If the Grantor determines the Grantee has completed construction of the foundation of the Minimum Improvements in accordance with permits issued by the Grantor, the Grantor will furnish to the Grantee a Certificate of Release in the form attached hereto as Exhibit B, releasing the Development Property from the right -of -reentry The Certificate of Release issued for the Development Property shall conclusively satisfy and terminate the right of reentry of the Grantor with respect to the Development Property in this Quit Claim Deed or the Development Agreement. The Grantee must record the Certificate of B-3 MN190\170\778717.v6 Release in the proper County land records. B-4 MN190\170\778717.v6 EXHIBIT B TO QUIT CLAIM DEED EXECUTED BY THE CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY, GRANTOR, IN FAVOR OF LLC, GRANTEE. CERTIFICATE OF RELEASE Recitals. Recital One. LLC, a Minnesota limited liability company (the "Grantee") is the owner of the real property legally described in Exhibit A hereto (the "Development Property"). Recital Two. Grantee acquired title to the Development Property subject to a right of reentry for breach of conditions subsequent in favor of the Grantor (the "Right of Reentry") set forth in a deed from the City of Monticello Economic Development Authority (the "Grantor") dated , 2022 and recorded in the office of the Wright County Registrar of Titles /Wright County Recorder on as Document No. (the "Deed"). Recital Three. The Grantee is a party to a Development Agreement between the Grantor and the Grantee, dated , 2022 (such agreement, as the same may be modified or amended, the "Development Agreement") (capitalized terms utilized herein and not separately defined shall have the meanings ascribed to them in the Development Agreement). Recital Four. Pursuant to the Development Agreement the Grantee is obligated to have completed, or caused to be completed, by , 20_, construction of the foundation of the Minimum Improvements in accordance with permits issued by the Grantor. Recital Five. The Grantor's Right of Reentry would be triggered by the Grantee's failure to have completed, or caused to be completed, by , 20_, construction of the foundation of the Minimum Improvements in accordance with permits issued by the City of Monticello, Minnesota. Recital Six. The Grantee has represented to the Grantor that the Grantee has completed, by , 20 , construction of the foundation of the Minimum Improvements in accordance with permits issued by the Grantor and has requested this Certificate of Release from the Grantor. Certificate of Release. The Grantor hereby certifies that the Grantee has satisfied its obligations with respect to completing, or causing to be completed, by , 20 , construction of the foundation of the Minimum Improvements in accordance with permits issued by the Grantor. The Grantor further acknowledges and agrees that the Development Property is released from the Right of Reentry. Modification of Development Agreement. Section 3.7 of the Development Agreement is hereby deleted in its entirety. B-5 MN190\170\778717.v6 IN WITNESS WHEREOF, the Grantor has caused this certificate to be duly executed on its behalf this day of , 20 CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY By: Its: President Bv: Its: Executive Director STATE OF MINNESOTA COUNTY OF WRIGHT This instrument was acknowledged before me on 20 by , as President and by , as Executive Director of the City of Monticello Economic Development Authority, a public body corporate and politic under the Constitution and laws of the State of Minnesota, on behalf of the Authority. Notary Public DRAFTED BY: Kennedy & Graven, Chartered (GAF) 150 South Fifth Street, Suite 700 Minneapolis, MN 55402 B-6 MN190\170\778717.v6 EXHIBIT A TO CERTIFICATE OF RELEASE LEGAL DESCRIPTION OF DEVELOPMENT PROPERTY The real property in the City of Monticello, County of Wright, State of Minnesota, legal described as follows: Lot 1, Block 5, Country Club Manor First Addition B-7 MN190\170\778717.v6 SCHEDULE C PURCHASE PRICE NOTE Dated 92022 (the "Developer"), hereby acknowledges itself to be indebted and, for value received, hereby promises to pay, solely from Purchase Price Note Pledged Tax Increment as provided herein, to the City of Monticello Economic Development Authority (the "EDA") the principal sum of One Hundred Eighty Thousand Six Hundred and Ninety Six Dollars ($180,696). The principal amount of this Purchase Price Note (the "Note") shall equal, from time to time, the principal amount stated above, as reduced to the extent that such principal shall have been paid in whole or in part pursuant to the terms hereof. This Note is issued pursuant to that certain Purchase and Development Contract, dated as of , 2022, as the same may be amended from time to time (the "Assistance Agreement"), by and between the EDA and the Developer. This Note bears interest until paid at a rate equal to 3.00% per annum (computed on the basis of a 360 -day year, of twelve 30 -day months). The Developer acknowledges that the EDA will credit Purchase Price Note Pledged Tax Increment (as defined in the Assistance Agreement) to the payment of this Note pursuant to the Purchase Price Loan (as defined in the Assistance Agreement). If, as of the termination date of the TIF District (as defined in the Assistance Agreement), the EDA has received Purchase Price Note Pledged Tax Increments available for the payment of this Note in an amount less than $180,696 plus accrued interest thereon, the EDA will forgive the remaining principal amount of this Note plus accrued interest thereon. This Note is prepayable at any time without penalty and the EDA may use apply other EDA funds to the prepayment of this Note. IN WITNESS WHEREOF, executed and delivered as of the date first written above. By: Its: MN190\170\778717.v6 C-1 LLC, has caused this Note to be LLC SCHEDULE D FORM OF CERTIFICATE OF COMPLETION CERTIFICATE OF COMPLETION WHEREAS, the City of Monticello Economic Development Authority (the "Authority") and LLC ("Developer") entered into a certain Purchase and Development Contract dated , 2022 (the "Contract"), recorded at the office of the County Recorder of Wright County as Document No. ; and WHEREAS, the Contract contains certain covenants and restrictions set forth in Articles III and IV thereof related to constructing certain Minimum Improvements; and WHEREAS, the Developer has performed said covenants and conditions insofar as it is able in a manner deemed sufficient by the Authority to permit the execution and recording of this certification; NOW, THEREFORE, this is to certify that all construction and other physical improvements related to the Minimum Improvements specified to be done and made by the Developer have been completed and the agreements and covenants in Articles III and IV of the Contract relating to such construction have been performed by the Developer, and this Certificate is a conclusive determination of the satisfactory termination of the covenants and conditions of Articles III and IV of the Contract related to completion of the Minimum Improvements, but any other covenants in the Contract shall remain in full force and effect. MN190\170\7787 t 7.v6 D-1 Dated: STATE OF MINNESOTA COUNTY OF WRIGHT 20. CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY SS. Authority Representative The foregoing instrument was acknowledged before me this day of 20_, by , the of the City of Monticello Economic Development Authority, a public body corporate and politic under the laws of the State of Minnesota, on behalf of the authority. Notary Public This document was drafted by: KENNEDY & GRAVEN, Chartered (GAF) 150 South 5th Street, Suite 700 Minneapolis, MN 55402 Telephone: (612) 337-9300 (Signature page to Certificate of Completion) MN190\170\778717.v6 D-2 SCHEDULE E Form of Renter's Income Verification Form PROPERTY INFORMATION Postal Address of Property Unit Number TENANT INFORMATION Name of Tenant Phone # Number of family/household members: Annual Household Income* $ *Annual Household Income must be supported by documentation (i.e. copy of most current 1040's, etc). Failure to provide verification will constitute a "non -qualifying tenant". INCOME LIMIT INFORMATION 20 Income Limits Family Size Income 1 2 3 4 5 6 7 8 Does the Tenant meet these limits and has appropriate documentation been submitted? YES NO Pursuant to the Purchase and Development Contract between the City of Monticello Economic Development Authority and Headwaters Development LLC dated as of June 8, 2022, at least 41 of the 102 rental units comprising the Minimum Improvements must be reserved for tenants whose income is 60% or less of the area's median gross income. Signature of Tenant(s) MN190\170\778717.v6 E-1 Date Date Reviewed and approved on behalf of Headwaters Development LLC. Date MN190\170\778717.v6 E-2 SCHEDULE F AUTHORIZING RESOLUTION CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. RESOLUTION AWARDING THE SALE OF, AND PROVIDING THE FORM, TERMS, COVENANTS AND DIRECTIONS FOR THE ISSUANCE OF A TAX INCREMENT REVENUE NOTE TO LLC AND APPROVING A PURCHASE AND DEVELOPMENT AGREEMENT WITH LLC INCLUDING THE CONVEYANCE OF LAND BE IT RESOLVED BY the Board of Commissioners ("Board") of the City of Monticello Economic Development Authority, Monticello, Minnesota (the "Authority") as follows: Section 1. Recitals. 1.01. Authorization. The Authority and the City of Monticello have approved the establishment of its Tax Increment Financing (Housing) District No. 1-42 (Headwaters Apartment Project) (the "TIF District"), within the Central Monticello Redevelopment Project No. 1 ("Redevelopment Project") and have adopted a tax increment financing plan therefore for the purpose of financing certain public improvements within the Redevelopment Project. 1.02. To facilitate development of certain property in the TIF District, the Authority proposes to enter into a Purchase and Development Contract (the "Agreement") with LLC, a Minnesota limited liability company, or an affiliate thereof or entity related thereto (the "Developer"), under which among other things the Authority will convey to the Developer, certain property described as Lot 1, Block 5, Country Club Manor First Addition, Wright County, Minnesota (the "Development Property") at a cost below market value. 1.03. The Authority proposes to sell the Development Property to the Developer at the price of $180,697 which will be paid from cash in the amount of $1.00 and a Purchase Price Note (the "Purchase Price Note") from the Developer in the amount of $180,696 which will be repaid from tax increment. In addition, the Authority proposes to reimburse the Developer for certain public development costs in the amount not to exceed $1,263,531 through the issuance of a pay as you go tax increment financing note (the "TIF Note") subject to the terms and conditions set forth in the Agreement. 1.04. On the date hereof, the Authority conducted a duly noticed public hearing regarding F-1 MN190\170\778717.v6 the conveyance of the Development Property to the Developer pursuant to the Agreement, at which all interested parties were given an opportunity to be heard, and hereby finds that the execution of the Agreement and performance of the Authority's obligations thereunder, including the conveyance of the Development Property to the Developer, are in the best interest of the City and its residents. Section 2. Agreement and Land Sale Approved. 2.01 The Board approves the Agreement as presented to the Board, including the provisions for the conveyance of the Development Property therein, subject to modifications that do not alter the substance of the transaction and that are approved by the President and Executive Director, provided that execution of the documents by those officials shall be conclusive evidence of their approval. 2.02. Authority staff and officials are authorized to take all actions necessary to perform the Authority's obligations under the Agreement as a whole, including without limitation execution of any deed or other documents necessary to convey the Development Property to Developer. Section 3. TIF Note Authorized and Approved. 3.01. The Authority hereby approves issuance of the TIF Note pursuant to the Agreement. The TIF Note shall be issued in the maximum aggregate principal amount of $1,263,531 to the Developer in consideration of certain eligible costs incurred by the Developer under the Agreement, shall be dated the date of delivery thereof, and shall bear interest at a rate to be set at the lesser of the Developer's actual mortgage financing rate or 3.75%. The TIF Note will be issued in a single series designated Taxable Tax Increment Revenue Note (Headwaters Apartment Project) issued in the principal amount of $1,263,531 to reimburse the Developer for certain costs in accordance with Section 3.9 of the Agreement. The TIF Note is secured by TIF Note Available Tax Increment, as further described in the form of the TIF Note attached hereto as Exhibit A. The Authority hereby delegates to the Executive Director the determination of the date on which the TIF Note is to be delivered, in accordance with the Agreement. Section 4. Form of TIF Note: Terms and Delivery of Note. 4.01 The TIF Note shall be in substantially the form attached hereto as Exhibit A, with the blanks to be properly filled in and the principal and interest rate amounts adjusted as of the date of issue. 4.02. Denomination, Payment. The TIF Note shall be issued as a single typewritten note numbered R-1. The TIF Note shall be issuable only in fully registered form. Principal of and interest on the TIF Note shall be payable by check or draft issued by the Registrar described herein. 4.03. Dates; Interest Payment Dates. Principal of and interest on the TIF Note shall be payable by mail to the owner of record thereof as of the close of business on the fifteenth day of the month preceding the Payment Date, whether or not such day is a business day. F-2 MN190\170\778717.v6 4.04. Registration. The Authority hereby appoints the City Finance Director to perform the functions of registrar, transfer agent and paying agent (the "Registrar"). The effect of registration and the rights and duties of the Authority and the Registrar with respect thereto shall be as follows: (a) Register. The Registrar shall keep at its office a bond register in which the Registrar shall provide for the registration of ownership of the TIF Note and the registration of transfers and exchanges of the TIF Note. (b) Transfer of TIF Note. Upon surrender for transfer of the TIF Note duly endorsed by the registered owner thereof or accompanied by a written instrument of transfer, in form reasonably satisfactory to the Registrar, duly executed by the registered owner thereof or by an attorney duly authorized by the registered owner in writing, and consent to such transfer by the Authority if required pursuant to the Agreement, the Registrar shall authenticate and deliver, in the name of the designated transferee or transferees, a new TIF Note of a like aggregate principal amount and maturity, as requested by the transferor. The Registrar may close the books for registration of any transfer after the fifteenth day of the month preceding each Payment Date and until such Payment Date. (c) Cancellation. The TIF Note surrendered upon any transfer shall be promptly cancelled by the Registrar and thereafter disposed of as directed by the Authority. (d) Improper or Unauthorized Transfer. When the TIF Note is presented to the Registrar for transfer, the Registrar may refuse to transfer the same until it is reasonably satisfied that the endorsement on such TIF Note or separate instrument of transfer is legally authorized. The Registrar shall incur no liability for its refusal, in good faith, to make transfers which it, in its judgment, deems improper or unauthorized. (e) Persons Deemed Owners. The Authority and the Registrar may treat the person in whose name the TIF Note is at any time registered in the bond register as the absolute owner of the TIF Note, whether the TIF Note shall be overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on such TIF Note and for all other purposes, and all such payments so made to any such registered owner or upon the owner's order shall be valid and effectual to satisfy and discharge the liability of the Authority upon such TIF Note to the extent of the sum or sums so paid. (f) Taxes, Fees and Charges. For every transfer or exchange of the TIF Note, the Registrar may impose a charge upon the owner thereof sufficient to reimburse the Registrar for any tax, fee, or other governmental charge required to be paid with respect to such transfer or exchange. (g) Mutilated, Lost, Stolen or Destroyed TIF Note. In case any TIF Note shall become mutilated or be lost, stolen, or destroyed, the Registrar shall deliver a new TIF Note of like amount, Termination Dates and tenor in exchange and substitution for and upon cancellation of such mutilated TIF Note or in lieu of and in substitution for such TIF Note lost, stolen, or destroyed, upon the payment of the reasonable expenses and charges of the Registrar in connection therewith; F-3 MN190\170\778717.v6 and, in the case the TIF Note lost, stolen, or destroyed, upon filing with the Registrar of evidence satisfactory to it that such TIF Note was lost, stolen, or destroyed, and of the ownership thereof, and upon furnishing to the Registrar of an appropriate bond or indemnity in form, substance, and amount satisfactory to it, in which both the Authority and the Registrar shall be named as obligees. The TIF Note so surrendered to the Registrar shall be cancelled by it and evidence of such cancellation shall be given to the Authority. If the mutilated, lost, stolen, or destroyed TIF Note has already matured or been called for redemption in accordance with its terms, it shall not be necessary to issue a new TIF Note prior to payment. 4.05. Preparation and Delivery. The TIF Note shall be prepared under the direction of the Executive Director and shall be executed on behalf of the Authority by the signatures of its President and Executive Director. In case any officer whose signature shall appear on the TIF Note shall cease to be such officer before the delivery of the TIF Note, such signature shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until delivery. When the TIF Note has been so executed, it shall be delivered by the Executive Director to the owner thereof in accordance with the Agreement. Section 5. Security Provisions. 5.01. Pledge. The Authority hereby pledges to the payment of the principal of and interest on the TIF Note all TIF Note Available Tax Increment as defined in the TIF Note. TIF Note Available Tax Increment shall be applied to payment of the principal of and interest on the TIF Note in accordance with the terms of the form of TIF Note set forth in Section 2 of this resolution. Section 6. Certification of Proceedings. 6.01. Certification of Proceedings. The officers of the Authority are hereby authorized and directed to prepare and furnish to the owner of the TIF Note certified copies of all proceedings and records of the Authority, and such other affidavits, certificates, and information as may be required to show the facts relating to the legality and marketability of the TIF Note as the same appear from the books and records under their custody and control or as otherwise known to them, and all such certified copies, certificates, and affidavits, including any heretofore furnished, shall be deemed representations of the Authority as to the facts recited therein. Section 7. Effective Date. This resolution shall be effective upon approval. Approved by the Board of Commissioners of the City of Monticello Economic Development Authority on June 8, 2022. President ATTEST: F-4 MN190\170\778717.v6 Executive Director F-5 MN190\170\778717.v6 EXHIBIT A UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF WRIGHT CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY No. R-1 $ TAXABLE TAX INCREMENT REVENUE NOTE SERIES 20_ (HEADWATERS APARTMENT PROJECT) Date Rate of Original Issue [lesser of 3.75% or Developer's actual financing rate] , 20_ The City of Monticello Economic Development Authority (the "Authority") for value received, certifies that it is indebted and hereby promises to pay to LLC, a Minnesota limited liability company, or registered assigns (the "Owner"), the principal sum of $ and to pay interest thereon at the rate of percent (%) per annum, solely from the sources and to the extent set forth herein. Capitalized terms shall have the meanings provided in the Purchase and Development Contract between the Authority and the Owner, dated as of June 8, 2022 (the "Agreement"), unless the context requires otherwise. 1. Payments. Principal and interest (the "Payments") shall be paid on August 1, 2025 and each February 1 and August 1 thereafter ("Payment Dates") to and including February 1, 2041 (the "Maturity Date") in the amounts and from the sources set forth in Section 3 herein. Payments shall be applied first to accrued interest, and then to unpaid principal. TIF Note Available Tax Increment will not include any Tax Increment (as defined the Agreement) if, as of any Payment Date, there is an uncured Event of Default under the Agreement. Payments are payable by mail to the address of the Owner or such other address as the Owner may designate upon sixty (60) days written notice to the Authority. Payments on this TIF Note are payable in any coin or currency of the United States of America which, on the Payment Date, is legal tender for the payment of public and private debts. 2. Interest. Interest at the rate stated herein shall accrue on the unpaid principal, commencing on the date of original issue. The Note shall bear simple non -compounding interest. 3. TIF Note Available Tax Increment. (a) Payments on this TIF Note are payable on each Payment Date solely from and in the amount of TIF Note Available Tax Increment, which shall mean, on each Payment Date, seventy-two and a half percent (72.5%) of the Tax Increment F-6 MN190\170\778717.v6 attributable to the Minimum Improvements and Development Property that is actually paid to the Authority by Wright County in the six (6) months preceding the Payment Date. (b) The Authority shall have no obligation to pay principal of and interest on this TIF Note on each Payment Date from any source other than TIF Note Available Tax Increment and the failure of the Authority to pay the entire amount of principal or interest on this TIF Note on any Payment Date shall not constitute a default hereunder as long as the Authority pays principal and interest hereon to the extent of TIF Note Available Tax Increment. The Authority shall have no obligation to pay any unpaid balance of principal or accrued interest that may remain after the final Payment on the Maturity Date. 4. Default. The Authority's payment obligations shall be subject to Sections 9.1 and 9.2 of the Agreement and are further subject to the conditions that (i) no Event of Default under Section 9.1 of the Agreement shall have occurred and be continuing at the time payment is otherwise due hereunder; and (ii) the Agreement and this TIF Note shall not have been terminated in accordance with Section 9.2 of the Agreement. Any such suspended and unpaid amounts shall become payable, without interest accruing thereon in the meantime, if this TIF Note has not been terminated in accordance with Section 9.2 of the Agreement and said Event of Default shall thereafter have been cured in accordance with Section 9.2. If pursuant to the occurrence of an Event of Default under the Agreement the Authority elects, in accordance with the Agreement, to cancel and rescind the Agreement and/or this TIF Note, the Authority shall have no further obligation under this TIF Note whatsoever. Reference is hereby made to all of the provisions of the Agreement, for a fuller statement of the rights and obligations of the Authority to pay the principal of this TIF Note and the interest thereon, and said provisions are hereby incorporated into this TIF Note as though set out in full herein. 5. Prepayment. The principal sum and all accrued interest payable under this TIF 6. Nature of Obligation. This TIF Note is one of an issue in the total principal amount of $ , issued to aid in financing certain public development costs and administrative costs of a Redevelopment Project undertaken by the Authority pursuant to Minnesota Statutes, Sections 469.090 through 469.1081, as amended, and Section 469.001 through 469.047, as amended, and is issued pursuant to an authorizing resolution (the "Resolution") duly adopted by the Authority on , 2022, and pursuant to and in full conformity with the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Sections 469.174 to 469.1794, as amended. This TIF Note is a limited obligation of the Authority which is payable solely from TIF Note Available Tax Increment pledged to the payment hereof under the Resolution. This TIF Note and the interest hereon shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including, without limitation, the Authority or the City of Monticello, Minnesota (the "City"). Neither the State of Minnesota, the City, the Authority nor any political subdivision thereof shall be obligated to pay the principal of or interest on this TIF Note or other costs incident hereto except out of TIF Note Available Tax Increment, and neither the full faith and credit nor the taxing power of the State of Minnesota , the City, the Authority, or any political subdivision thereof is pledged to the payment of the principal of or interest on this TIF Note or other costs incident hereto. F-7 MN190\170\778717.v6 THE AUTHORITY MAKES NO REPRESENTATION OR WARRANTY THAT THE TIF NOTE AVAILABLE TAX INCREMENT WILL BE SUFFICIENT TO PAY THE PRINCIPAL OF AND INTEREST ON THIS NOTE. 7. Registration and Transfer. This TIF Note is issuable only as a fully registered TIF Note without coupons. As provided in the Resolution, and subject to certain limitations set forth therein, this TIF Note is transferable upon the books of the Authority kept for that purpose at the principal office of the Executive Director, by the Owner hereof in person or by such Owner's attorney duly authorized in writing, upon surrender of this TIF Note together with a written instrument of transfer satisfactory to the Authority, duly executed by the Owner. Upon such transfer or exchange and the payment by the Owner of any tax, fee, or governmental charge required to be paid by the Authority with respect to such transfer or exchange, there will be issued in the name of the transferee a new TIF Note of the same aggregate principal amount, bearing interest at the same rate and maturing on the same dates, within 15 days after the delivery by the Owner of its request and approval of such request by the Authority if required under the Agreement. Except as otherwise provided in the Agreement, this TIF Note shall not be transferred to any person or entity, unless the Authority has provided written consent to such transfer and the Authority is provided with an investment letter in a form satisfactory to the Authority. The Registrar may close the books for registration of any transfer after the fifteenth (15th) day of the month preceding each Payment Date and until such Payment Date. IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions, and things required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen, and to be performed in order to make this TIF Note a valid and binding limited obligation of the Authority according to its terms, have been done, do exist, have happened, and have been performed in due form, time and manner as so required. IN WITNESS WHEREOF, the Board of Commissioners of the City of Monticello Economic Development Authority have caused this TIF Note to be executed with the manual signatures of its President and Executive Director, all as of the Date of Original Issue specified above. Executive Director F-8 MN190\170\778717.v6 CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY President REGISTRATION PROVISIONS The ownership of the unpaid balance of the within TIF Note is registered in the bond register of the City Finance Director, in the name of the person last listed below. Date of Registration Registered Owner , 20 Federal Tax I.D No MN190\170\778717.v6 F-9 Signature of Executive Director SCHEDULE G Villas Property The real property in the City of Monticello, County of Wright, State of Minnesota, legal described as follows: Lots 1-21, Block 1, Country Club Manor First Addition Lots 1-11, Block 2, Country Club Manor First Addition Lots 1-11, Block 3, Country Club Manor First Addition Lots 1-21, Block 4, Country Club Manor First Addition Outlot A, Country Club Manor First Addition Outlot B, Country Club Manor First Addition Outlot C, Country Club Manor First Addition G-1 MN190\170\778717.v6 NORTHLAND PUBLIC FINANCE MEMORANDUM To: City of Monticello From: Tammy Omdal Date: June 9, 2022 Re: Evaluation of Public Financial Assistance for TIF 1-42 (Headwaters Apartment Project) The City of Monticello (the "City") and the City of Monticello Economic Development Authority (the "EDA") received an application from Headwaters Development LLC (the "Redeveloper") for public financial assistance to assist with the construction by the Developer of an approximate 108 -unit rental multi -family housing facility for seniors, with approximately 75 on -grade and 100 covered parking stalls (the "Project"). The Project is located on a parcel at the corner of Golf Course Road and 7th Street West within the City (the "Property"). Subject to approval of the request for public financial assistance, the Redeveloper plans to commence construction of the Project by May 1, 2022, and substantially complete construction by December 31, 2023. The estimated cost for the Project is approximately $23.4 million (see Exhibit B). The Redeveloper's request for public financial assistance is to assist with the extraordinary costs of redevelopment and construction of the affordable housing for the Project. The Redeveloper has represented that it will not undertake the Project as proposed without the approval of the requested public financial assistance. It is Northland's opinion that the Project, which includes underground parking, is unlikely to occur but for the proposed public financial assistance, inclusive of the tax increment financing (TIF). Without public financial assistance, the Project is not expected to achieve the level of debt service coverage and returns needed to secure the necessary private financing and equity. Without the underground parking, the Project as proposed would not be feasible and the density (number of housing units) would need to be reduced. Northland finds that it is reasonable for the EDA to consider public financial assistance for the Project, an affordable housing project, as necessary so that development by private enterprise will occur on the Property. The Project, inclusive of the higher level of density, is possible only with the construction of the underground parking, which will not occur solely through private investment within the reasonably foreseeable future. Public Financial Assistance Due to the extraordinary costs associated with acquisition and development of the Project, the Redeveloper is seeking public financial assistance from the EDA in the form pay -go tax increment financing assistance and conveyance of the Property to the Redeveloper from the EDA. The tax increment revenue is proposed to come from Tax Increment Financing (Housing) District No. 1-42 (the "TIF District") within the existing Central Monticello Redevelopment Project No. 1. 150 South Fifth Street, Suite 3300, Minneapolis, MN 55402 Main: (612) 851-5900 / Direct: (612) 851-4964 / Email: tomdal@northlandsecurities.com Member FIlVRA and SIPC I Registered with SEC and MSRB Monticello TIF 1-42 June 9, 2022 Page 2 The City Council held a public hearing and approved the establishment of the TIF District on February 14, 2022, and the EDA approved on February 23, 2022. The application from the Redeveloper included a request for $2,979,740 in TIF assistance for the Project. Based on Northland's analysis of the financial information provided by the Redeveloper, the following terms for assistance to the Redeveloper are proposed: • Maximum term of 15 years for TIF assistance to the Redeveloper TIF "pay -go" revenue note (the "TIF Note") to be issued to reimburse of $1,263,531 of qualified costs for the Project plus interest at rate to be set at the lesser of Redeveloper's actual mortgage financing rate, estimated for planning purposes to be or 3.75%, from the date of issue per annum to the earlier of maturity or prepayment. Total estimated payments to the Redeveloper over 15 years is estimated to be approximately $1.82 million, including principal and interest payments. The TIF Note will be payable solely from net available semi-annual tax increments. Net available semi-annual tax increments shall be based on 72.5% of the tax increment collected from the Project within the TIF District. The TIF Note shall bear simple, non -compounding interest from the date that the EDA has determined paid invoices, as paid by the Redeveloper, in compliance with the terms of the Agreement. • Developer will pay at closing the outstanding deferred special assessments on the Property in the estimated amount of $43,107. This amount is a pro -rated share of the total outstanding deferred special assessments of $231,402 on the land owned by the EDA that will sub -divided for establishment of the TIF District (1-42) and a Tax Increment Financing District No. 1-43 (Villas). • EDA will convey land to the Project. The estimated value of the land to be contributed to the Redeveloper for the Project is $180,697. • EDA will retain 27.5% of the increment to repay itself for qualified costs of the Project, including administrative costs and land contribution. • Combined present value of the public financial assistance to the Redeveloper for the Project is approximately $2.0 million, including TIF ($1.82 million) and land contribution ($0.18 million). • Proposed terms will be subject to a Contract for Private Redevelopment (the "Agreement") between the Redeveloper and the EDA. • Use of tax increments to include reimbursement to the EDA for the contribution of the Property and reimbursement to the Redeveloper for site improvements and the costs of constructing the affordable housing units. • Tax increment cash flow estimate assumes up to 15 years of tax increment assistance to the Redeveloper, which is less than the 26 -year maximum term allowed by state law. Based on a proposed election for year 2025 to be the first year of tax increment collection for the TIF District, the estimated termination date of the Agreement is February 1, 2041. Exhibit A provides a summary of the estimated tax increment cash flow from the TIF District available to reimburse the Redeveloper for eligible costs for construction of the Project. Monticello TIF 1-42 June 9, 2022 Page 3 Review of Application for Assistance Northland conducted a review of the Redeveloper's application for financial assistance dated November 29, 2021, along with other information provided by the Redeveloper as requested by Northland. Northland reviewed project cost estimates to ensure all anticipated sources and uses for the Project were properly included. Exhibit B provides information on the sources and uses of funds for the Project. Based on a review of the pro forma for the Project and under current market conditions, we find that the Project, as proposed, may not reasonably be expected to occur solely through private investment within the reasonably near future. Due to the costs associated with construction of the affordable housing units, the Project as proposed is feasible only through assistance, in part, from TIF. This conclusion is supported by the following: The Redeveloper plans for the $23.4 million of project cost for the Project to be funded from a combination of debt (77.8%), equity (21.5%) and contributions of land (0.8%). The present value of the future payments on the TIF Note reduces the effective cost of the Project by approximately $1.26 million. Based on estimated net operating income, the effective return without the public financial assistance is not at a level the Project would proceed. ■ The total estimated cost per unit for the Project is approximately $217,028 for the construction of 108 units, including the cost of the parking. The Project will include 16 studio units, 64 one - bedroom units, and 28 two-bedroom units. Based on Northland's experience with similar projects and given the location of the Project, we find the estimated cost per unit to be reasonable. The estimated average gross monthly rent for units, in the first stabilized year of the Project, is estimated at approximately $1,340 per month. A minimum of 40% of the units will be affordable at 60% of the average median income (AMI for Wright County as of fiscal year 2021 is $104,900). The annual total gross rental income for the Project is estimated at $1,736,813 in the first year of stabilized occupancy, before adjusting for estimated apartment vacancy and rental loss of 5%. The total annual expense, operating and non-operating, is estimated at $6,446 per unit. This includes management fee and replacement reserve. This average cost per unit appears to be high compared to Northland's experience with other similar projects. For comparison, the equivalent expense for another housing TIF district in the City, approved in 2018 by the EDA, was estimated at $3,527 per unit. Northland estimates that the Redeveloper may be able to reduce the estimated expenses and increase the projected returns for the Project. The estimated average debt service coverage with tax increment financing is estimated to average 1.25X during the first ten years of stabilized operations, and without financial assistance the average is 1.14X. The coverage for the mortgage without the tax increment is not at a level that we would expect the Project, as proposed, to proceed. The financing of this type of project would be expected to be at a minimum of approximately 1.2X coverage, which is consistent with the minimum coverage the Redeveloper indicates as needed. ■ The cash -on -cash return is projected to reach an estimated 10.5% by year ten of stabilized operations with financial assistance, and 8.0% without assistance. Monticello TIF 1-42 June 9, 2022 Page 4 EXHIBIT A City of Monticello Monticello Tax Increment Financing District No. 1-42 (Housing) Headwaters Apartment Project Projected Tax Increment Cash Flow Key Assumptions for Cash Flow: 1 Taxable market value (TMV) annual growth assumption = 1.00% 2 Original Tax Rate estimated based on Taxes Payable Year 2021. 3 Election for captured tax capacity is 100.0% 4 Original Net Tax Capacity is calculated based on a TMV = $71,932, NTC calculated for Apartment classification. 5 Present value is calculated based on semi-annual payments, 3.0% rate, and date of 12/1/2022. 6 Available TIF is after deducting State Auditor Fee of 0.36%. 27.5% 3.0% 72.5% 3.75% LessCaptured Taxable TIF Taxes Original Original TIF PV of Net Market Net Tax Net Tax Available PV of TIF TIF to District Payable Value Capacity Net Tax Capacity Tax Rate z TIF 6 Retained to City 6 Developer Available 6 Year Year (TMV) Capacity s by City TIF 1 2025 13,089,600 163,620 899 162,721 95.949% 155,567 42,824 39,263 112,743 101,169 2 2026 13,220,496 165,256 899 164,357 95.949% 157,131 43,254 77,756 113,877 199,629 3 2027 13,352,701 166,909 899 166,010 95.949% 158,712 43,689 115,497 115,022 295,452 4 2028 13,486,228 168,578 899 167,679 95.949% 160,307 44,129 152,498 116,178 388,708 5 2029 13,621,090 170,264 899 169,364 95.949% 161,919 44,572 188,775 117,347 479,466 6 2030 13,757,301 171,966 899 171,067 95.949% 163,546 45,020 224,341 118,526 567,793 7 2031 13,894,874 173,686 899 172,787 95.949% 165,190 45,473 259,211 119,717 653,755 8 2032 14,033,823 175,423 899 174,524 95.949% 166,851 45,930 293,399 120,921 737,414 9 2033 14,174,161 177,177 899 176,278 95.949% 168,528 46,392 326,916 122,136 818,832 10 2034 14,315,903 178,949 899 178,050 95.949% 170,222 46,858 359,778 123,364 898,069 11 2035 14,459,062 180,738 899 179,839 95.949% 171,933 47,329 391,996 124,604 975,184 12 2036 14,603,652 182,546 899 181,647 95.949% 173,661 47,804 423,583 125,856 1,050,233 13 2037 14,749,689 184,371 899 183,472 95.949% 175,406 48,285 454,552 127,121 1,123,271 14 2038 14,897,186 186,215 899 185,316 95.949% 177,169 48,770 484,914 128,399 1,194,353 15 2039 15,046,158 188,077 899 187,178 95.949% 178,948 49,260 514,681 129,688 1,263,531 2,505,090 689,589 514,6811,815,501 1,263,531 TOTAL = Key Assumptions for Cash Flow: 1 Taxable market value (TMV) annual growth assumption = 1.00% 2 Original Tax Rate estimated based on Taxes Payable Year 2021. 3 Election for captured tax capacity is 100.0% 4 Original Net Tax Capacity is calculated based on a TMV = $71,932, NTC calculated for Apartment classification. 5 Present value is calculated based on semi-annual payments, 3.0% rate, and date of 12/1/2022. 6 Available TIF is after deducting State Auditor Fee of 0.36%. Monticello TIF 1-42 June 9, 2022 Page 5 EXHIBIT B City of Monticello Headwaters Apartment Building Project Developer Sources and Uses for Project Total % of Total Per Unit Sources First Mortgage / TIF Mortgage $18,229,740 77.8% $168,794 Contribution of Land from EDA/City $180,697 0.8% $1,673 Equity $5,028,607 21.5% $46,561 Total Sources of Funds $23,439,044 100.0% $217,028 Uses Land Acquisition (Contribution from City) $180,697 0.8% $1,673 Land Acquisition (Deferred Special Assessment) $43,107 0.2% $399 Construction (includes contingency) $20,237,265 86.3% $187,382 FFE $294,495 1.3% $2,727 Project management and design fee $200,000 0.9% $1,852 City Fees $741,980 3.2% $6,870 Financing and Other Soft Costs $1,741,500 7.4% $16,125 Total Uses of Funds $23,439,044 100.0% $217,028 Number of Units 108 Note: The Developer may seeek to monetize (or mortgage) the TIF Revenue Note. 32 RENTAL STRESS BY INCOME RENTAL STRESS in Monticello exists almost entirely within low-income City households. While there are renter households over 80% AMI that experience cost burden, higher -income cost burdened households often have the option to spend more than 30% of income toward housing while still maintaining the ability to cover fixed costs - cost burden by choice. Due to the structure of the rental market in the City, there are gaps in unit availability at appropriate price points to serve specific incomes in the market. Overall, there is a general oversupply of low-cost units that serve households between 31 % and 80% AMI (approx. $800 - $1,300 monthly rent). These units represent natural appreciation of units within the market - they do not have subsidies that allow them to alleviate cost burden for the lowest - income households, while also not filling demand for the highest -income users in the market. There are significant housing gaps at both the top and bottom of the rental housing market, with an undersupply of market -rate units for households earning over 80% AMI (rental housing cost $1,500+) as well as affordable units with 250 200 150 100 50 Less than $20,000 $20,000 - $34,999 rents below $800 monthly. Although there is a high market gap, there is an upwards limit to income that can realistically be spent on housing. Many higher income households also value affordability (spending less than 30%), so this does not display true unit for unit demand for high cost housing. It does create some additional market tension, where some high income households rent significantly below what they could afford, using units otherwise affordable to lower-income households. RENTAL UNIT MISMATCH *most recent available data - does not include Monticello Crossings Source: American Community Survey 5 -Year Estimates M m $35,000 - $49,999 $50,000 - $74,999 0% - 30% AMI 480 215 31% - 50% AMI 200 650 51% - 80% AMI 405 460 > 81% AMI 285 45* -240 *most recent available data - does not include Monticello Crossings Source: American Community Survey 5 -Year Estimates M m $35,000 - $49,999 $50,000 - $74,999 ■ Cost Burdened Severely Cost Burdened > $75,000 33 RENTAL HOUSING STRESS COST BURDENED RENTER HOUSEHOLDS Source: American Community Survey 5—Year Estimates LEVELS OF COST BURDEN (2018) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Monticello Buffalo Becker ■ Cost Burden (30%-50% Income Toward Rent) RATES OF RENTER COST BURDEN may be low in Monticello overall, but those renters who are cost burdened are much more likely to be severely cost burdened (spending more than 50% income toward rental costs). Of those experiencing cost burden in the City, 73% are severely cost burdened. This rate is significantly higher than in regional peer communities, 21.7 points higher than the next closest community. While rates of cost burden are low overall, higher income households "renting down", as well as increased demand in the market overall increases competition for units in the moderate- and middle- market segments. This also indicates a lack of appropriately - priced units for the lowest income households already living in the community, and indicates opportunity to better serve low-income households through income -restricted and subsidized units that ensure affordability levels not currently provided within the market. Big Lake St. Michael Wright County Severe Cost Burden (>50% Income Toward Rent) Source: HUD Comprehensive Housing Affordability Strategy Renta( Market Monticello 174 4;, 72.5% Buffalo 519 420 44.7% Becker 72 38 34.5% Big Lake 289 29 9.1% St. Michael 165 159 48.6% Wright County 1,889 1,951, 50.8% Source: American Community Survey 5—Year Estimates LEVELS OF COST BURDEN (2018) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Monticello Buffalo Becker ■ Cost Burden (30%-50% Income Toward Rent) RATES OF RENTER COST BURDEN may be low in Monticello overall, but those renters who are cost burdened are much more likely to be severely cost burdened (spending more than 50% income toward rental costs). Of those experiencing cost burden in the City, 73% are severely cost burdened. This rate is significantly higher than in regional peer communities, 21.7 points higher than the next closest community. While rates of cost burden are low overall, higher income households "renting down", as well as increased demand in the market overall increases competition for units in the moderate- and middle- market segments. This also indicates a lack of appropriately - priced units for the lowest income households already living in the community, and indicates opportunity to better serve low-income households through income -restricted and subsidized units that ensure affordability levels not currently provided within the market. Big Lake St. Michael Wright County Severe Cost Burden (>50% Income Toward Rent) Source: HUD Comprehensive Housing Affordability Strategy Renta( Market 35 RENTAL UNIT CONSUMPTION WHILE UNIT CHOICE is important to the freedom and desirability of the local housing market, more options at appropriate price points can help guide consumers into more appropriately priced units that ease burden at all levels. Comments received in the Community Survey largely called out this need for housing across multiple price points - even when not directly asked. While a few respondents were hesitant toward new development, themes largely arose that clearly identified both affordable and executive level housing options as needs within the community. This included a significant response for increased housing support directed toward households at risk of homelessness - which per HUD guidance is considered severely cost burdened, extremely low-income renter households (approx. 225 of these households currently live in the City). RENTAL UNIT HOUSEHOLD OCCUPANCY The survey also identified specific building types they would like to see within the market - and in addition to amenity -rich market rate options for renters who may choose to telecommute, attached unit and townhome development were commonly listed as options to help fill the mid-level market, whether ownership or rental. In looking to directly address rental costs for low- income households, one method commonly used is to aim to add the undersupply. In Monticello, this would be a goal to add 265 units of rental housing affordable to the lowest -income earners in the community (0% - 30% AMI households). This would allow options for these households to eliminate or severely reduce their housing costs, decrease rates of rental cost burden, and open up units they were occupying to other households in the community or moving to the community at price - points appropriate to their own income. I I I I V12 .9 ffWC4;1 ; IvIlm11w," IF)EFR4 RNUMM Affordable at 30% 175 40 0 0 0 Affordable 31% - 50% 195 85 210 105 60 Affordable 51% - 80% 95 60 180 50 70 Affordable at >80% 15 15 15 0 0 100 RENTAL DEMAND - LOW ESTIMATE Within the rental market, projections are based on projected household growth, current rates of household tenure for demographics likely to be seeking rental housing, and then focused based on rates of affordability to current residents who rent within the housing market. This demand analysis indicates a slow shift from ownership to renter markets, consistent with changes in rates of tenure over the past decade. Gradual and thoughtful demand -driven outcomes will likely see more a higher percentage of rental units created in an average year than the current overall percentage of renters in the community. The low estimate for rental housing in the next 5 years assumes fewer new units than have been created in the past 5 -year period, and should be treated as a baseline for unit development, not a target that should preclude development when the baseline has been met. New - Housing Demand Demand from Household Growth Within the City - Household Growth in Rental Demographics 329 additional households Demographic Renter Rate 37% Demand from New Construction 122 rental units Demand from Existing Resident Households Current Renters in Market 62 households Percent of Renters Seeking New Housing 28% Increased Demand from Existing Renters 325 rental units Renters with Preference for New Construction 20% Existing Renter Demand for New Construction 65 rental units Total Demand for New Construction Rental Units = 187 units Affordable Units 50% Mid -Level Units 40% High Market Units 10% New Affordable Demand 93 units New Mid -Level Demand 75 units New High Market Demand 19 units Additional Need for Vacancy 52 units Additional Need for Vacancy 32 units Additional Need for Vacancy 19 units Total Affordable Need 145 units Total Mid -Level Need 107 units Total High Market Need 38 units Total Unit Need = 290 units City of Monticello Housing Needs and Demand RENTAL DEMAND - HIGH ESTIMATE 101 High estimates for rental demand assume continued, strong demand within the market - and matches approximately the same number of units that have been created over the past 5 -year period. This suggests continued demand for development types that have been coming forward in the City, and planning for the trend to continue will allow the City to identify sites and areas through downtown and key corridors. The City can balance market demand for more rental housing with small town character through smart siting and design regulations. This estimate of demand may come to be met if growth pressures increase further than current projections indicate, and developments should be considered based on their own merits and demonstrated need on an annual basis. New - Housing Demand Demand from Household Growth Within the City - Household Growth in Rental Demographics 510 additional households Demographic Renter Rate 37% Demand from New Construction 189 rental units Demand from Existing Resident Households Current Renters in Market 62 households Percent of Renters Seeking New Housing 28% Increased Demand from Existing Renters 325 rental units Renters with Preference for New Construction 20% Existing Renter Demand for New Construction 65 rental units Total Demand for New Construction Rental Units = 254 units Affordable Units 50% Mid -Level Units 40% High Market Units 10% New Affordable Demand 127 units New Mid -Level Demand 102 units New High Market Demand 25 units Additional Need for Vacancy 54 units Additional Need for Vacancy 34 units Additional Need for Vacancy 20 units Total Affordable Need 181 units Total Mid -Level Need 136 units Total High Market Need 45 units Total Unit Need = 362 units Unit Demand & Recommendations Headwaters Development Proposal Overview City of Monticello, MN Senior Apartments and Villas Proposal TIF Supported ■ 102 Unit Market Rate Apt w/ an affordable component 40 % of units will be affordable to Senior 55 + households = 41 units ■ 60 units Villas Twin homes w/ an affordable component 40% of units will be affordable to Senior 55 + households = 24 units Monticello Senior Unit Demand per 2020 Housing Study in context or Headwaters Development app and Villas Proposal iez units Independent Living - Subsidized 2020 = 92 units* 2025 = 103 units Independent Living— Market Rate 2020 = 47 units 2035 = 55 units Assisted Living - Market Rate 2020 = 208 units 2025 = 242 units HW meeting needs of 65 units (still remaining demand of 38 units) HW meeting needs of 97 units (presumably all unit demand plus is met via HW Dev Proposal) Land Sale Breakdown • Land Sale Amount = $1; HW Land Sale Write Down = $969,999 • Total Land Sale Revenues or Receipts to EDA = $970,000 • Pooled TIF Land Sale Revenues or Receipts to EDA = $800,000 • New Tax Increment Collection from HW Development to EDA = $170,000,. plus interest at 3.0 percent/yr. (est. 5 to 11 years EDA Agenda: 06/08/22 8. Consideration of Adopting Resolution No. 2022-16 Authorizing a Purchase and Development Agreement with Headwaters Development for Lot 1-21, Block 1; Lot 1-11, Block 2; Lot 1-11, Block 3; Lot 1-21, Block 4; Outlot A; Outlot B and Outlot C all in Country Club Manor. First Addition in the amount or $1.00 related to a 60 -unit Twin home Villas development proposal in connection with and supported by Affordable Housing TIF District 1-43 (JT) A. REFERENCE AND BACKGROUND: The EDA is asked to consider adopting Resolution No. 2022-16 authorizing a Purchase and Development Contract with Headwaters Development, LLC for the parcels noted in the staff report title all of which are in the Country Club Manor, First Addition plat. The Contract relates to the Headwaters Development senior 55 + apartment development proposal and also spells out the terms of Affordable Housing TIF assistance. The developer is seeking public financial assistance for its proposal to construct 60 rental townhomes on 30 pad sites. The project is to be located on the easterly portion of a land parcel known as Outlot A, Country Club Manor, at the corner of Golf Course Road and 7th Street West within the City. The EDA has owned this 16.71 -acre property for some time. Due to the costs associated with the land acquisition and development of the villa housing units, the developer is seeking public financial assistance from the EDA in the form of pay -go tax increment financing and conveyance of the site to the developer from the EDA for $1.00. The tax increment revenue is proposed to come from a newly established Affordable Housing TIF District No. 1-43. Subject to approval of the request for public financial assistance, the developer plans to commence construction by October 15, 2022, and substantially complete construction by December 31, 2023. The total cost of the Project is estimated at approximately $20.5 million or $341,667 per unit which is based on the developer's recent pro forma. The developer's request for public financial assistance is to assist with the extraordinary costs of development including grading, installation of utilities and streets and construction of the new housing. Headwaters Development has indicated that it will not proceed with the proposal without the approval of the requested public financial assistance. Relating to the TIF assistance, the developer has committed to creating and maintaining 40 percent of the units as affordable throughout the life of the TIF District. Other key Contract terms are shown below: • Maximum of 15 years of TIF assistance to the developer. EDA Agenda: 06/08/22 • A Pay Go TIF Revenue Note (payable from increment generated by new development) will be issued to the developer in the amount of $1,590,087 for qualified costs, plus interest matching the developer's borrowing costs. • At the land closing transaction, the developer will pay the special assessments against the property to the City, estimated to total $188,295. • EDA will be fully compensated for its land value in the amount of $789,303, plus interest on a portion of the purchase price. In a related sister proposal, Headwaters Development is also proposing to develop a 102 - unit apartment on the western portion of the EDA owned parcel. Due to slightly different developer ownership interests, the apartment development component will be presented as a separate TIF Development Contract (1-42) consideration. Both proposals are targeted to meet the needs of seniors (ages 55+) in the community. The last affordable housing TIF District (#1-40) was established in June 2018 for the 47 -unit Rivertown Residential Suites apartment which was developed by the Briggs Companies. It is in Block 36, in the core downtown area of Monticello and received a Certificate of Occupancy in May 2020 and a Certificate of Completion in the fall of 2020. A timeline of the various TIF review and approval steps by the EDA and the City Council to date is shown below. ✓ November 29, 2021 - Receipt of the Headwaters Development TIF Application ✓ December 8, 2021— EDA reviews the TIF application and accepts it ✓ December 8, 2021— EDA Approves Resolution requesting the City Council to call for a Public Hearing for consideration of approving an Affordable Housing TIF District (1- 43) ✓ December 13, 2021— City Council Approves Resolution calling for a February 14, 2022, Public Hearing wherein it allows public comment and discusses establishing TIF District 1-43 in support of Headwaters Development's Apartment proposal ✓ February 14, 2022 — City Council holds Public Hearing; Approves Resolution Establishing TIF District 1-43 and the TIF Plan relating thereto ✓ May 23, 2022 -City Council Approves Resolution modifying TIF 1-43 Plan budget sources and uses summary to better reflect the accurate land value as per a completed real estate appraisal ✓ June 8, 2022 — EDA considers Resolution modifying TIF 1-43 Plan Budget sources and uses summary to better reflect the accurate land value as per a completed real estate appraisal Ua EDA Agenda: 06/08/22 ✓ June 8, 2022 — EDA considers Resolution authorizing the Purchase and Development Agreement for the sale of the parcels and the TIF 1-43 assistance terms Al. STAFF IMPACT: Staff involved in the proposed TIF District consideration include the Community Development Director, Economic Development Manager, the EDA attorney and the financial advisor. No additional staff are needed to complete the TIF review and approval process. An estimate of the total hours involved in the TIF review and approval process to date by both in-house and consultant staff is between 70 to 7S hours. Additional hours will accrue to the effort through the date of certification with Wright County. A2. BUDGET IMPACT: The budgetary impact related to EDA consideration of its approval of TIF District 1-43 and the Plan relating thereto should be minimal. All consultant fees (legal and financial advisory) should be covered by Headwaters Development. The developer submitted the required TIF application fee of $10,000 in late November with the packet of materials. Costs incurred above and beyond that amount will be invoiced to the developer. The impact of the proposed development project offers a positive element in that the EDA has an opportunity to sell a parcel of land for a market rate price using the mechanics of the pay -go TIF District increment capture. Over time, the captured increment will flow into the EDA General Fund for the negotiated price of the 16.71 -acre parcel which will allow it to pursue other worthwhile housing and industrial development projects in the future. Also, Headwaters is not requesting a waiver of standard fees such as SAC, WAC, Trunk Fees, Park Dedication, etc. Ultimately, TIF increments are derived from new tax revenue from "new development" valuation. A3. COMPREHENSIVE PLAN IMPACT: The Vision adopted as part of the Monticello 2040 Plan is to create a friendly and safe community which is inclusive and fosters a sense of belonging. The city has adopted a strategy for housing which includes developing a range of housing choice and opportunity. As residents move through their career paths and family status, their housing needs change. As an actively developing community, Monticello seeks to provide opportunities for a full range of "life cycle" housing options allowing them to stay and grow with our community. This proposal meets a specific housing need in the community, which is further supported by the 2020 Housing Study. The proposed project also meets the Monticello 2040 goal for growing from within, as it is also located within the city on an underutilized parcel of land. A. ALTERNATIVE ACTIONS: 1. Motion to adopt Resolution No. 2022-16 authorizing the Purchase and Development Agreement with Headwaters Development for Lot 1-21, Block 1; Lot 1-11, Block 2; Lot 1- 11, Block 3; Lot 1-21, Block 4; Outlot A; Outlot B and Outlot C all in Country Club Manor, 9 EDA Agenda: 06/08/22 First Addition related to a 60 -unit Twin home Villas development proposal in connection with and supported by Affordable Housing TIF District 1-43 2. Motion to table consideration of Resolution No. 2022-16 for further research and/or discussion. A. STAFF RECOMMENDATION: Staff recommends the EDA adopt Resolution No. 2022-16 authorizing the Purchase and Development Agreement with Headwaters Development. Approval will allow Headwaters Development to pursue the 60 -unit Twin home development proposal and receive TIF assistance support to create 24 affordable units addressing needs identified in the 2020 Housing Study. The sale of the EDA owned site will generate revenue in the amount of $789,303, plus interest for a small portion of the purchase price and allow it to utilize those dollars address other identified economic development needs in the City. The developer has indicated that due to the extraordinary costs related to the overall development components including grading, utility extensions and site excavation that it needs TIF to move forward. B. SUPPORTING DATA: A. Resolution No. 2022-16 B. Purchase and Development Agreement —TIF 1-43 Headwaters Twin homes C. Northland Summary Memo 4 CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2022-46 RESOLUTION AWARDING THE SALE OF, AND PROVIDING THE FORM, TERMS, COVENANTS AND DIRECTIONS FOR THE ISSUANCE OF A TAX INCREMENT REVENUE NOTE AND APPROVING A PURCHASE AND DEVELOPMENT AGREEMENT WITH HEADWATERS DEVELOPMENT LLC INCLUDING THE CONVEYANCE OF LAND BE IT RESOLVED BY the Board of Commissioners ("Board") of the City of Monticello Economic Development Authority, Monticello, Minnesota (the "Authority") as follows: Section 1. Recitals. 1.01. Authorization. The Authority and the City of Monticello, Minnesota (the "City") have approved the establishment of its Tax Increment Financing (Housing) District No. 1-43 (Headwaters Villas Project) (the "TIF District"), within the Central Monticello Redevelopment Project No. 1 ("Redevelopment Project") and have adopted a tax increment financing plan therefore for the purpose of financing certain public improvements within the Redevelopment Project. 1.02. To facilitate development of certain property in the TIF District, the Authority proposes to enter into a Purchase and Development Contract (the "Agreement") with Headwaters Development LLC, a Minnesota limited liability company, or an affiliate thereof or entity related thereto (the "Developer"), under which among other things the Authority will convey to the Developer certain property in the City with a current parcel ID of 155033900010 located at the southeast corner of 7h Street West and Golf Course Road to be replatted as legally described in Exhibit A attached hereto (the "Development Property") at a cost below market value in order for the Developer to construct approximately 60 rental housing units for seniors with attached two -car garages (the "Minimum Improvements"). 1.03. The Authority proposes to sell the Development Property to the Developer at the price of $789,303 which will be paid from cash in the amount of $1.00 and a Purchase Price Note (the "Purchase Price Note") from the Developer in the amount of $789,302 which will be repaid from available tax increment generated by the Development Property in accordance with the Agreement. In addition, the Authority proposes to reimburse the Developer for certain public development costs for the Minimum Improvements in the amount not to exceed $1,590,087 through the issuance of a pay as you go tax increment financing note (the "TIF Note") subject to the terms and conditions set forth in the Agreement. 1.04. On the date hereof, the Authority conducted a duly noticed public hearing regarding the conveyance of the Development Property to the Developer pursuant to the Agreement, at which all interested parties were given an opportunity to be heard, and hereby finds that the execution of the Agreement and performance of the Authority's obligations thereunder, including the conveyance of the Development Property to the Developer, are in the best interest of the City and its residents. 1.05. The Authority and the City have previously established Tax Increment Financing District Nos. 1-19, 1-22, 1-24, 1-29, 1-30 (the "Pooled TIF Districts"). The Authority currently has pooled tax increment available for affordable housing from the Pooled TIF Districts. The Authority intends to prepay its obligation to use available tax increment from the Development Property to pay the Purchase Price Note with pooled tax increment from the Pooled TIF Districts. Section 2. Agreement and Land Sale Approved. 2.01 The Board approves the Agreement in substantially the form presented to the Board, together with any related documents necessary in connection therewith, including without limitation all documents, exhibits, certifications, or consents referenced in or attached to the Agreement including without limitation the Deed and any documents required by the title company relating to the conveyance of property (all as defined in the Agreement) (the "Development Documents"). The Board hereby approves the conveyance of the Development Property to the Developer in accordance with the terms of the Agreement. 2.02. The Board hereby authorizes the President and Executive Director, in their discretion and at such time, if any, as they may deem appropriate, to execute the Development Documents on behalf of the Authority, and to carry out, on behalf of the Authority, the Authority's obligations thereunder when all conditions precedent thereto have been satisfied. The Development Documents shall be in substantially the form on file with the Authority and the approval hereby given to the Development Documents includes approval of such additional details therein as may be necessary and appropriate and such modifications thereof, deletions therefrom and additions thereto as may be necessary and appropriate and approved by legal counsel to the Authority and by the officers authorized herein to execute said documents prior to their execution; and said officers are hereby authorized to approve said changes on behalf of the Authority. The execution of any instrument by the appropriate officers of the Authority herein authorized shall be conclusive evidence of the approval of such document in accordance with the terms hereof. This resolution shall not constitute an offer and the Development Documents shall not be effective until the date of execution thereof as provided herein. 2.03. In the event of absence or disability of the officers, any of the documents authorized by this resolution to be executed may be executed without further act or authorization of the Board by any duly designated acting official, or by such other officer or officers of the Board as, in the opinion of the City Attorney, may act in their behalf. Upon execution and delivery of the Development Documents, the officers and employees of the Board are hereby authorized and directed to take or cause to be taken such actions as may be necessary on behalf of the Board to implement the Development Documents, including without limitation the issuance of tax increment revenue obligations thereunder when all conditions precedent thereto have been satisfied and reserving funds for the payment thereof in the applicable tax increment accounts and B-2 MN190\163\801498.v1 the crediting of tax increments to the payment of the Purchase Price Note when all conditions precedent thereto have been satisfied. Section 3. TIF Note Authorized; Use of Pooled Tax Increment Approved. 3.01. The Authority hereby approves issuance of the TIF Note pursuant to the Agreement. The TIF Note shall be issued in the maximum aggregate principal amount of $1,590,087 to the Developer in consideration of certain eligible costs incurred by the Developer under the Agreement, shall be dated the date of delivery thereof, and shall bear interest at a rate to be set at the lesser of the Developer's actual mortgage financing rate or 4.50%. The TIF Note will be issued in a single series designated the Taxable Tax Increment Revenue Note (Headwaters Villas Project) issued in the principal amount of $1,590,087 to reimburse the Developer for certain costs in accordance with Section 3.9 of the Agreement. The TIF Note is secured by TIF Note Available Tax Increment, as further described in the form of the TIF Note attached hereto as Exhibit B. The Authority hereby delegates to the Executive Director the determination of the date on which the TIF Note is to be delivered, in accordance with the Agreement. 3.02. The Authority hereby authorizes and approves the use of pooled tax increment from the Pooled TIF Districts to prepay its obligation to use available tax increment from the Development Property. Section 4. Form of TIF Note: Terms and Delivery of Note. 4.01 The TIF Note shall be in substantially the form attached hereto as Exhibit B, with the blanks to be properly filled in and the principal and interest rate amounts adjusted as of the date of issue. 4.02. Denomination, Pam. The TIF Note shall be issued as a single typewritten note numbered R-1. The TIF Note shall be issuable only in fully registered form. Principal of and interest on the TIF Note shall be payable by check or draft issued by the Registrar described herein. 4.03. Dates; Interest Payment Dates. Principal of and interest on the TIF Note shall be payable by mail to the owner of record thereof as of the close of business on the fifteenth day of the month preceding the Payment Date, whether or not such day is a business day. 4.04. Registration. The Authority hereby appoints the City Finance Director to perform the functions of registrar, transfer agent and paying agent (the "Registrar"). The effect of registration and the rights and duties of the Authority and the Registrar with respect thereto shall be as follows: (a) Register. The Registrar shall keep at its office a bond register in which the Registrar shall provide for the registration of ownership of the TIF Note and the registration of transfers and exchanges of the TIF Note. (b) Transfer of TIF Note. Upon surrender for transfer of the TIF Note duly endorsed by the registered owner thereof or accompanied by a written instrument of transfer, in form B-3 MN190\163\801498.v1 reasonably satisfactory to the Registrar, duly executed by the registered owner thereof or by an attorney duly authorized by the registered owner in writing, and consent to such transfer by the Authority if required pursuant to the Agreement, the Registrar shall authenticate and deliver, in the name of the designated transferee or transferees, a new TIF Note of a like aggregate principal amount and maturity, as requested by the transferor. The Registrar may close the books for registration of any transfer after the fifteenth day of the month preceding each Payment Date and until such Payment Date. (c) Cancellation. The TIF Note surrendered upon any transfer shall be promptly cancelled by the Registrar and thereafter disposed of as directed by the Authority. (d) Improper or Unauthorized Transfer. When the TIF Note is presented to the Registrar for transfer, the Registrar may refuse to transfer the same until it is reasonably satisfied that the endorsement on such TIF Note or separate instrument of transfer is legally authorized. The Registrar shall incur no liability for its refusal, in good faith, to make transfers which it, in its judgment, deems improper or unauthorized. (e) Persons Deemed Owners. The Authority and the Registrar may treat the person in whose name the TIF Note is at any time registered in the bond register as the absolute owner of the TIF Note, whether the TIF Note shall be overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on such TIF Note and for all other purposes, and all such payments so made to any such registered owner or upon the owner's order shall be valid and effectual to satisfy and discharge the liability of the Authority upon such TIF Note to the extent of the sum or sums so paid. (f) Taxes, Fees and Charges. For every transfer or exchange of the TIF Note, the Registrar may impose a charge upon the owner thereof sufficient to reimburse the Registrar for any tax, fee, or other governmental charge required to be paid with respect to such transfer or exchange. (g) Mutilated, Lost, Stolen or Destroyed TIF Note. In case any TIF Note shall become mutilated or be lost, stolen, or destroyed, the Registrar shall deliver a new TIF Note of like amount, Termination Dates and tenor in exchange and substitution for and upon cancellation of such mutilated TIF Note or in lieu of and in substitution for such TIF Note lost, stolen, or destroyed, upon the payment of the reasonable expenses and charges of the Registrar in connection therewith; and, in the case the TIF Note lost, stolen, or destroyed, upon filing with the Registrar of evidence satisfactory to it that such TIF Note was lost, stolen, or destroyed, and of the ownership thereof, and upon furnishing to the Registrar of an appropriate bond or indemnity in form, substance, and amount satisfactory to it, in which both the Authority and the Registrar shall be named as obligees. The TIF Note so surrendered to the Registrar shall be cancelled by it and evidence of such cancellation shall be given to the Authority. If the mutilated, lost, stolen, or destroyed TIF Note has already matured or been called for redemption in accordance with its terms, it shall not be necessary to issue a new TIF Note prior to payment. 4.05. Preparation and Delivery. The TIF Note shall be prepared under the direction of the Executive Director and shall be executed on behalf of the Authority by the signatures of its B-4 MN190\163\801498.v1 President and Executive Director. In case any officer whose signature shall appear on the TIF Note shall cease to be such officer before the delivery of the TIF Note, such signature shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until delivery. When the TIF Note has been so executed, it shall be delivered by the Executive Director to the owner thereof in accordance with the Agreement. Section 5. Security Provisions. 5.01. Pledge. The Authority hereby pledges to the payment of the principal of and interest on the TIF Note all TIF Note Available Tax Increment as defined in the TIF Note. TIF Note Available Tax Increment shall be applied to payment of the principal of and interest on the TIF Note in accordance with the terms of the form of TIF Note set forth in Section 2 of this resolution. Section 6. Certification of Proceedings. 6.01. Certification of Proceedings. The officers of the Authority are hereby authorized and directed to prepare and furnish to the owner of the TIF Note certified copies of all proceedings and records of the Authority, and such other affidavits, certificates, and information as may be required to show the facts relating to the legality and marketability of the TIF Note as the same appear from the books and records under their custody and control or as otherwise known to them, and all such certified copies, certificates, and affidavits, including any heretofore furnished, shall be deemed representations of the Authority as to the facts recited therein. Section 7. Effective Date. This resolution shall be effective upon approval. Approved by the Board of Commissioners of the City of Monticello Economic Development Authority on June 8, 2022. President ATTEST: Executive Director B-5 MN190\163\801498.v1 EXHIBIT A LEGAL DESCRIPTION OF DEVELOPMENT PROPERTY The real property in the City of Monticello, County of Wright, State of Minnesota, legally described as follows: Lots 1-21, Block 1, Country Club Manor First Addition Lots 1-11, Block 2, Country Club Manor First Addition Lots 1-11, Block 3, Country Club Manor First Addition Lots 1-21, Block 4, Country Club Manor First Addition Outlot A, Country Club Manor First Addition Outlot B, Country Club Manor First Addition Outlot C, Country Club Manor First Addition A-1 MN190\163\801498.v1 EXHIBIT B UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF WRIGHT CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY No. R-1 $ TAXABLE TAX INCREMENT REVENUE NOTE SERIES 20_ (HEADWATERS VILLAS PROJECT) Date Rate of Original Issue [lesser of 4.50% or Developer's actual financing rate] , 20 The City of Monticello Economic Development Authority (the "Authority") for value received, certifies that it is indebted and hereby promises to pay to LLC, a Minnesota limited liability company, or registered assigns (the "Owner"), the principal sum of $ and to pay interest thereon at the rate of percent (%) per annum, solely from the sources and to the extent set forth herein. Capitalized terms shall have the meanings provided in the Purchase and Development Contract between the Authority and the Owner, dated as of June 8, 2022 (the "Agreement"), unless the context requires otherwise. 1. Payments. Principal and interest (the "Payments") shall be paid on August 1, 2025 and each February 1 and August 1 thereafter ("Payment Dates") to and including February 1, 2041 (the "Maturity Date") in the amounts and from the sources set forth in Section 3 herein. Payments shall be applied first to accrued interest, and then to unpaid principal. TIF Note Available Tax Increment will not include any Tax Increment (as defined the Agreement) if, as of any Payment Date, there is an uncured Event of Default under the Agreement. Payments are payable by mail to the address of the Owner or such other address as the Owner may designate upon sixty (60) days written notice to the Authority. Payments on this TIF Note are payable in any coin or currency of the United States of America which, on the Payment Date, is legal tender for the payment of public and private debts. 2. Interest. Interest at the rate stated herein shall accrue on the unpaid principal, commencing on the date of original issue. The Note shall bear simple non -compounding interest. 3. TIF Note Available Tax Increment. (a) Payments on this TIF Note are payable on each Payment Date solely from and in the amount of TIF Note Available Tax Increment, which shall mean, on each Payment Date, seventy-nine and four -tenths percent (79.4%) of the Tax B-1 MN190\163\801498.v1 Increment attributable to the Minimum Improvements and Development Property that is actually paid to the Authority by Wright County in the six (6) months preceding the Payment Date. (b) The Authority shall have no obligation to pay principal of and interest on this TIF Note on each Payment Date from any source other than TIF Note Available Tax Increment and the failure of the Authority to pay the entire amount of principal or interest on this TIF Note on any Payment Date shall not constitute a default hereunder as long as the Authority pays principal and interest hereon to the extent of TIF Note Available Tax Increment. The Authority shall have no obligation to pay any unpaid balance of principal or accrued interest that may remain after the final Payment on the Maturity Date. 4. Default. The Authority's payment obligations shall be subject to Sections 9.1 and 9.2 of the Agreement and are further subject to the conditions that (i) no Event of Default under Section 9.1 of the Agreement shall have occurred and be continuing at the time payment is otherwise due hereunder; and (ii) the Agreement and this TIF Note shall not have been terminated in accordance with Section 9.2 of the Agreement. Any such suspended and unpaid amounts shall become payable, without interest accruing thereon in the meantime, if this TIF Note has not been terminated in accordance with Section 9.2 of the Agreement and said Event of Default shall thereafter have been cured in accordance with Section 9.2. If pursuant to the occurrence of an Event of Default under the Agreement the Authority elects, in accordance with the Agreement, to cancel and rescind the Agreement and/or this TIF Note, the Authority shall have no further obligation under this TIF Note whatsoever. Reference is hereby made to all of the provisions of the Agreement, for a fuller statement of the rights and obligations of the Authority to pay the principal of this TIF Note and the interest thereon, and said provisions are hereby incorporated into this TIF Note as though set out in full herein. 5. Prepayment. The principal sum and all accrued interest payable under this TIF 6. Nature of Obligation. _ This TIF Note is one of an issue in the total principal amount of $ , issued to aid in financing certain public development costs and administrative costs of a Redevelopment Project undertaken by the Authority pursuant to Minnesota Statutes, Sections 469.090 through 469.1081, as amended, and Section 469.001 through 469.047, as amended, and is issued pursuant to an authorizing resolution (the "Resolution") duly adopted by the Authority on , 2022, and pursuant to and in full conformity with the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Sections 469.174 to 469.1794, as amended. This TIF Note is a limited obligation of the Authority which is payable solely from TIF Note Available Tax Increment pledged to the payment hereof under the Resolution. This TIF Note and the interest hereon shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including, without limitation, the Authority or the City of Monticello, Minnesota (the "City"). Neither the State of Minnesota, the City, the Authority nor any political subdivision thereof shall be obligated to pay the principal of or interest on this TIF Note or other costs incident hereto except out of TIF Note Available Tax Increment, and neither the full faith and credit nor the taxing power of the State of Minnesota , the City, the Authority, or any political subdivision thereof is pledged to the payment of the principal of or interest on this TIF Note or other costs incident hereto. B-2 MN190\163\801498.v1 THE AUTHORITY MAKES NO REPRESENTATION OR WARRANTY THAT THE TIF NOTE AVAILABLE TAX INCREMENT WILL BE SUFFICIENT TO PAY THE PRINCIPAL OF AND INTEREST ON THIS NOTE. 7. Registration and Transfer. This TIF Note is issuable only as a fully registered TIF Note without coupons. As provided in the Resolution, and subject to certain limitations set forth therein, this TIF Note is transferable upon the books of the Authority kept for that purpose at the principal office of the Executive Director, by the Owner hereof in person or by such Owner's attorney duly authorized in writing, upon surrender of this TIF Note together with a written instrument of transfer satisfactory to the Authority, duly executed by the Owner. Upon such transfer or exchange and the payment by the Owner of any tax, fee, or governmental charge required to be paid by the Authority with respect to such transfer or exchange, there will be issued in the name of the transferee a new TIF Note of the same aggregate principal amount, bearing interest at the same rate and maturing on the same dates, within 15 days after the delivery by the Owner of its request and approval of such request by the Authority if required under the Agreement. Except as otherwise provided in the Agreement, this TIF Note shall not be transferred to any person or entity, unless the Authority has provided written consent to such transfer and the Authority is provided with an investment letter in a form satisfactory to the Authority. The Registrar may close the books for registration of any transfer after the fifteenth (15th) day of the month preceding each Payment Date and until such Payment Date. IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions, and things required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen, and to be performed in order to make this TIF Note a valid and binding limited obligation of the Authority according to its terms, have been done, do exist, have happened, and have been performed in due form, time and manner as so required. IN WITNESS WHEREOF, the Board of Commissioners of the City of Monticello Economic Development Authority have caused this TIF Note to be executed with the manual signatures of its President and Executive Director, all as of the Date of Original Issue specified above. Executive Director B-3 MN190\163\801498.v1 CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY President REGISTRATION PROVISIONS The ownership of the unpaid balance of the within TIF Note is registered in the bond register of the City Finance Director, in the name of the person last listed below. Date of Registration Registered Owner , 20 Federal Tax I.D No MN190\163\801498.v1 Signature of Executive Director PURCHASE AND DEVELOPMENT CONTRACT By and Between CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY and HEADWATERS DEVELOPMENT LLC Dated as of: June 8, 2022 This document was drafted by: KENNEDY & GRAVEN, Chartered (GAF) 150 South 5th Street, Suite 700 Minneapolis, MN 55402 Telephone: (612) 337-9300 TABLE OF CONTENTS PREAMBLE............................................................................................................................1 ARTICLE I Definitions Section1.1. Definitions..........................................................................................................3 ARTICLE II Representations and Warranties Section 2.1. Representations and Warranties by the Authority.............................................7 Section 2.2. Representations and Warranties by the Developer............................................7 ARTICLE III Conveyance of Property; TIF Assistance Section 3.1. Conveyance of the Development Property......................................................... 9 Section 3.2. Purchase Price; Provisions for Payment; and Fees ............................................. 9 Section 3.3. Representation and As Is Conveyance................................................................ 9 Section3.4. Title...................................................................................................................10 Section 3.5. Contingencies to Closing on Development Property ........................................ l l Section3.6. Closing..............................................................................................................13 Section 3.7. Conveyance Subject to Right of Re-entry........................................................14 Section 3.8 Advance of Purchase Price Note and Other Costs; Tax Increment Purchase Price Note...................................................................................................................14 Section 3.9. Reimbursement of Public Development Costs; Issuance of TIF Note .............14 Section 3.10. No Business Subsidy.........................................................................................16 Section 3.11. Payment of Administrative Costs.....................................................................16 ARTICLE IV Construction of Minimum Improvements Section 4.1. Construction of Minimum Improvements.......................................................17 Section 4.2. Construction Plans...........................................................................................17 Section 4.3. Commencement and Completion of Construction...........................................18 Section 4.4. Certificate of Completion................................................................................19 Section 4.5. Records and Reports........................................................................................19 Section4.6. Income Limits..................................................................................................19 ARTICLE V Insurance Section5.1. Insurance..........................................................................................................21 Section5.2. Subordination...................................................................................................22 MN190\163\801191.v1 ARTICLE VI Delinquent Taxes and Review of Taxes Section 6.1. Right to Collect Delinquent Taxes...................................................................23 Section 6.2. Review of Taxes..............................................................................................23 ARTICLE VII Financing Section7.1. Financing..........................................................................................................24 Section 7.2. Authority's Option to Cure Default on Mortgage............................................24 Section 7.3. Subordination and Modification for the Benefit of Mortgagee .......................24 ARTICLE VIII Prohibitions Against Assignment and Transfer; Indemnification Section 8.1. Representation as to Development...................................................................25 Section 8.2. Prohibition Against Developer's Transfer of Property and Assignmentof Agreement...............................................................................25 Section 8.3. Release and Indemnification Covenants..........................................................26 ARTICLE IX Events of Default Section 9.1. Events of Default Defined................................................................................ 28 Section 9.2. Remedies on Default......................................................................................... 28 Section 9.3. No Remedy Exclusive....................................................................................... 28 Section 9.4. No Additional Waiver Implied by One Waiver ................................................ 29 Section 10.1. Section 10.2. Section 10.3. Section 10.4. Section 10.5. Section 10.6. Section 10.7. Section 10.8. Section 10.9. Section 10.10. Section 10.11. Section 10.12. MN190\163\801191.v1 ARTICLE X Additional Provisions Conflict of Interests; Authority Representatives Not Individually Liable....... 30 Equal Employment Opportunity......................................................................30 Restrictions on Use..........................................................................................30 Provisions Not Merged With Deed..................................................................30 Titles of Articles and Sections.........................................................................30 Noticesand Demands......................................................................................30 Counterparts.....................................................................................................31 Recording.........................................................................................................31 Amendment...................................................................................................... 31 AuthorityApprovals........................................................................................31 Termination...................................................................................................... 31 Choice of Law and Venue................................................................................31 SCHEDULE A Description of Development Property SCHEDULE B Form of Quit Claim Deed SCHEDULE C Form of Purchase Price Note SCHEDULED Certificate of Completion SCHEDULE E Form of Income Verification SCHEDULE F Resolution Approving Contract and TIF Note SCHEDULE G Description of Apartments Property (The remainder of this page is intentionally left blank.) MN190\163\801191.v1 PURCHASE AND DEVELOPMENT CONTRACT THIS AGREEMENT, made as of the 81h day of June, 2022, by and between the CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY, a public body corporate and politic and a political subdivision under the laws of the State of Minnesota (the "Authority"), and HEADWATERS DEVELOPMENT LLC, a Minnesota limited liability company (the "Developer"). WITNESSETH: WHEREAS, the Housing and Redevelopment Authority in and for the City of Monticello (the "HRA") has undertaken a program to promote economic development and job opportunities and to promote the redevelopment of land which is underutilized within the City of Monticello, Minnesota (the "City"), and in this connection created the Central Monticello Redevelopment Project No. 1 (the "Redevelopment Project") pursuant to Minnesota Statutes, Sections 469.001 through 469.047, as amended (the "HRA Act"), and adopted a redevelopment plan for the Redevelopment Project; and WHEREAS, the Authority was established pursuant to Minnesota Statutes, Sections 469.090 to 469.108 1, as amended (hereinafter referred to as the "Act"), and was authorized to transact business and exercise its powers by a resolution of the City Council of the City, which also transferred the control and responsibility for the Redevelopment Project from the HRA to the Authority; and WHEREAS, pursuant to its powers under Minnesota Statutes, Sections 469.090 to 469.1081 (the "EDA Act") and the HRA Act, the Authority is authorized to acquire real property, or interests therein, and to undertake certain activities to facilitate the development of real property by private enterprise; and WHEREAS, the Authority has acquired or will acquire certain property described in Schedule A (the "Development Property") within the Redevelopment Project, and intends to convey that property to the Developer for development of certain improvements described herein; and WHEREAS, the Authority and City have approved a Tax Increment Financing Plan and a Modification to the Tax Increment Financing Plan (collectively, the "TIF Plan") for Tax Increment Financing (Housing) District No. 1-43 (Headwaters Villas Project) (the "TIF District"), a housing district within the Redevelopment Project, pursuant to Minnesota Statutes, Sections 469.174 to 469.1794, as amended (the "TIF Act"); and WHEREAS, pursuant to the Act, the Authority is authorized to undertake certain activities to facilitate the redevelopment of real property by private enterprise; and WHEREAS, the Authority intends to convey the Development Property to the Developer for the purposes of constructing approximately 60 rental housing units for seniors with attached two -car garages on the Development Property (the "Minimum Improvements") in accordance with the terms hereof and has requested that the Authority provide certain financial assistance to assist the Developer MN190\163\801191.v1 with certain costs thereof in order to fill the gap between the total development costs and the funds available to pay such costs; and WHEREAS, the Authority believes that the development of the Development Property pursuant to this Agreement and the fulfillment generally of this Agreement are in the vital and best interests of the City and the health, safety, morals, and welfare of its residents, and in accord with the public purposes and provisions of the applicable State and local laws and requirements under which the Redevelopment Project has been undertaken and is being assisted. NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: 2 MN190\163\801191.v1 ARTICLE I Definitions Section 1.1. Definitions. In this Agreement, unless a different meaning clearly appears from the context: "Act" means, collectively, the Economic Development Authority Act, Minnesota Statutes, Sections 469.090 to 469.1081, as amended, and the Housing and Redevelopment Authority Act, Minnesota Statutes, Sections 469.001 to 469.047, as amended. "Affiliate" means with respect to any entity (a) any corporation, partnership, limited liability company or other business entity or person controlling, controlled by, or under common control with the entity, and (b) any successor to such party by merger, acquisition, reorganization, or similar transaction involving all or substantially all of the assets of such party (or such Affiliate). For the purpose hereof the words "controlling", "controlled by," and "under common control with" shall mean, with respect to any corporation, partnership, limited liability company, or other business entity, the ownership of fifty percent or more of the voting interests in such entity or possession, directly or indirectly, of the power to direct or cause the direction of management policies of such entity, whether through ownership of voting securities or by contract or otherwise. "Agreement" means this Purchase and Development Agreement, as the same may be from time to time modified, amended, or supplemented. "Apartments Property" means the real property described in Schedule G of this Agreement. "Authority" means the City of Monticello Economic Development Authority, or any successor or assign. "Authority Representative" means the Executive Director of the Authority, or any person designated by the Executive Director to act as the Authority Representative for the purposes of this Agreement. "Authorizing Resolution" means the resolution of the Authority, substantially in the form of attached Schedule F to be adopted by the Authority to approve this Agreement and authorize the issuance of the TIF Note. "Certificate of Completion" means the certification in the form set forth in Schedule D and provided to the Developer pursuant to Section 4.4 of this Agreement. "City" means the City of Monticello, Minnesota. "Closing Date" or "Closing" means not later than September 30, 2022, or such other date as agreed to by the Authority and Developer on which the Authority will convey title to the Property to the Developer. MN190\163\801191.v1 "Construction Documents" shall mean the following documents, all of which shall be in form and substance acceptable to Authority: (a) evidence satisfactory to Authority showing that the Minimum Improvements conforms to applicable zoning, subdivision and building code laws and ordinances, including a copy of the building permit for the Minimum Improvements; (b) a copy of the executed agreement between owner and architect for architectural services for the Minimum Improvements, if any, and (c) a copy of the executed general contractor's contract for the Minimum Improvements, if any. "Construction Plans" means the plans, specifications, drawings and related documents on the construction work to be performed by the Developer on the Development Property which a) shall be as detailed as the plans, specifications, drawings, and related documents which are submitted to the appropriate building officials of the City, and (b) shall include at least the following for each building: (1) site plan; (2) foundation plan; (3) basement plans; (4) floor plan for each floor; (5) cross sections of each (length and width); (6) elevations (all sides); (7) landscape plan; and (8) such other plans or supplements to the foregoing plans as the Authority may reasonably request to allow it to ascertain the nature and quality of the proposed construction work. "County" means the County of Wright, Minnesota. "Deed" means the Quit Claim Deed in the form attached hereto as Schedule B, to be executed by the City conveying the Development Property to the Developer. "Developer" means Headwaters Development LLC, a Minnesota limited liability company, or its permitted successors and assigns, as provided in Section 10.13 of this Agreement. "Development Property" means the real property described in Schedule A of this Agreement. "Event of Default" means an action by the Developer listed in Section 9.1 of this Agreement. "Minimum Improvements" means the construction by the Developer on the Development Property of approximately 60 rental housing units for seniors with attached two -car garages. "Mortgage" means any mortgage made by the Developer, which is secured, in whole or in part, with the Development Property and which is a permitted encumbrance pursuant to the provisions of Article VII of this Agreement. "Payment Date" means August 1 of the year commencing on August 1, 2025 and each February 1 and August 1 thereafter until the Termination Date. "Public Development Costs" has the meaning provided in Section 3.9(a) hereof. "Purchase Price Note" has the meaning provided in Section 3.3 hereof. "Purchase Price Note Available Tax Increment," means, on each Payment Date, 20.6% of the Tax Increment attributable to the Development Property and paid to the Authority by Wright County in the six (6) months preceding the Payment Date, after payment of the Authority's administrative costs. 4 MN190\163\801191.v1 "Redevelopment Plan" means the Authority's Redevelopment Plan for the Redevelopment Project, as amended through the date of this Agreement. No. 1. "Redevelopment Project" means the Authority's Central Monticello Redevelopment Project "State" means the State of Minnesota. "Tax Increment" means that portion of the real property taxes which is paid with respect to the Development Property and which is actually remitted to the Authority as tax increment pursuant to the Tax Increment Act. The term Tax Increment does not include any amounts retained by or payable to the State auditor under Section 469.177, subdivision 11 of the Tax Increment Act. "Tax Increment Act" or "TIF Act" means the Tax Increment Financing Act, Minnesota Statutes, Sections 469.174 to 469.1794, as amended. "Tax Increment District" or "TIF District" means the Authority's Tax Increment Financing (Housing) District No. 1-43 (Headwaters Villas Project). "Tax Increment Plan" or "TIF Plan" means the Authority's Tax Increment Financing Plan for the TIF District, as approved by the Authority on February 23, 2022, and by the City on February 14, 2022, and as modified by the Modification to the Tax Increment Financing Plan for the Tax Increment Financing District No. 1-43 (Headwaters Villas Project), as approved by the Authority on June 8, 2022, and by the City on May 23, 2022, and as may be amended from time to time. "Tax Official" means any County assessor; County auditor; County or State board of equalization, the commissioner of revenue of the State, or any State or federal district court, the tax court of the State, or the State Supreme Court. "Termination Date" means the later of (a) date of the Authority's last receipt of Tax Increment from the TIF District in accordance with Section 469.176, subdivision lb(3) of the TIF Act; (b) the date the Purchase Price Note has been paid in full, defeased, or terminated in accordance with the terms of the resolution set forth in Schedule C; or (c) the date the TIF Note has been paid in full or terminated in accordance with the terms of this Agreement. "TIF Note" means the Taxable Tax Increment Revenue Note (Headwaters Villas Project), substantially in the form contained in the Authorizing Resolution, to be delivered by the City to the Developer in accordance with Section 3.9(a) hereof. "TIF Note Available Tax Increment," means, on each Payment Date, 79.4% of the Tax Increment attributable to the Development Property and paid to the Authority by Wright County in the six months preceding the Payment Date, but solely to the extent payable on such Payment Date pursuant to the TIF Note. TIF Note Available Tax Increment shall not include any Tax Increment if, as of any Payment Date, there is an uncured Event of Default under this Agreement. 5 MN190\163\801191.v1 "Title Company" means Guaranty Commercial Title, Inc., as the agent for Old Republic National Title Insurance Company, or other title company designated by the Developer in connection with the acquisition of the Development Property. "Transfer" has the meaning set forth in Section 8.2(a) hereof. "Unavoidable Delays" means delays beyond the reasonable control of the party seeking to be excused as a result thereof which are the direct result of war, terrorism, strikes, other labor troubles, prolonged adverse weather or acts of God, fire or other casualty to the Minimum Improvements, a pandemic or epidemic, but not including the effects of the current Covid-19 pandemic that are reasonably foreseeable on the date of this Agreement, litigation commenced by third parties which, by injunction or other similar judicial action, directly results in delays, or acts of any federal, state, or local governmental unit (other than the Authority in exercising its rights under this Agreement) which directly result in delays. Unavoidable Delays shall not include delays in the Developer's obtaining of permits or governmental approvals necessary to enable construction of the Minimum Improvements by the dates such approvals and construction is required under Sections 4.2 and 4.3 of this Agreement. (The remainder of this page is left intentionally blank.) 6 MN190\163\801191.v1 ARTICLE II resentations and Warranties Section 2.1. Representations and Warranties by the Authority. The Authority makes the following representations and warranties: (a) The Authority is an economic development authority duly organized and existing under the laws of the State. Under the provisions of the Act, the Authority has the power to enter into this Agreement and carry out its obligations hereunder. (b) The activities of the Authority are undertaken to foster the development and redevelopment of certain real property which for a variety of reasons is presently underutilized, to create increased tax base in the City, to increase affordable housing opportunities in the City, and to stimulate further development of the TIF District and Redevelopment Project as a whole. (c) The Authority makes no representation or warranty, either express or implied, as to the Development Property or its condition, or that the Development Property shall be suitable for the Developer's purposes or needs. (d) No member of the Board of Commissioners of the Authority, or officer of the Authority, has either a direct or indirect financial interest in this Agreement. Section 2.2. Representations and Warranties by the Developer. The Developer represents and warrants that: (a) The Developer is a limited liability company duly organized and in good standing under the laws of the State of Minnesota, is not in violation of any provisions of its organizational documents or the laws of the State, is duly authorized to transact business within the State, has power to enter into this Agreement and has duly authorized the execution, delivery, and performance of this Agreement by proper action of its governing members. (b) If the Developer acquires the Development Property in accordance with this Agreement, the Developer will construct, operate, and maintain the Minimum Improvements in accordance with the terms of this Agreement, the Redevelopment Plan and all applicable local, state, and federal laws and regulations (including, but not limited to, environmental, zoning, building code, labor, and public health laws and regulations). (c) The Developer has received no actual notice or communication from any local, state, or federal official that the activities of the Developer or the Authority in the Redevelopment Project may be or will be in violation of any environmental law or regulation (other than those notices or communications of which the Authority is aware). The Developer is not actually aware of any facts the existence of which would cause it to be in violation of or give any person a valid claim under any local, state, or federal environmental law, regulation, or review procedure. 7 MN190\163\801191.v1 (d) The Developer will make reasonable efforts to obtain, in a timely manner, all required permits, licenses, and approvals, and will make reasonable efforts to meet, in a timely manner, all requirements of all applicable local, state, and federal laws and regulations which must be obtained or met before the Minimum Improvements may be lawfully constructed. (e) Neither the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and conditions of this Agreement is prevented, limited by, or conflicts with or results in a breach of, the terms, conditions or provisions of any corporate restriction or any evidences of indebtedness, agreement or instrument of whatever nature to which the Developer is now a party or by which it is bound, or constitutes a default under any of the foregoing. (f) Whenever any Event of Default occurs and if the Authority shall employ attorneys or incur other expenses for the collection of payments due or to become due or for the enforcement of performance or observance of any obligation or agreement on the part of the Developer under this Agreement, and the Authority prevails in such action, the Developer agrees that it shall, within thirty (30) days of written demand by the Authority, pay to the Authority the reasonable fees of such attorneys and such other expenses so incurred by the Authority. (g) The proposed development by the Developer hereunder would not occur but for the tax increment financing assistance being provided by the Authority hereunder. (h) The Developer understands that the Authority and the City may subsidize or encourage the development of other developments in the City, including properties that compete with the Development Property and the Minimum Improvements, and that such subsidies may be more favorable than the terms of this Agreement, and that neither the Authority nor the City has represented that development of the Development Property will be favored over the development of other properties. (i) The Developer represents that no more than twenty percent (20%) of the square footage of the Minimum Improvements will consist of commercial, retail or other nonresidential use. (The remainder of this page is intentionally left blank.) 8 MN190\163\801191.v1 ARTICLE III Acquisition and Conveyance of Property; TIF Assistance Section 3.1. Conveyance of the Development Property. As of the date of this Agreement, the Authority owns Outlot A, Country Club Manor, Wright County, Minnesota, which includes the Development Property described in Schedule A and the Apartments Property described in Schedule G. At Closing, the Authority will record a new plat for such property in order to subdivide Outlot A, a portion which will be the Development Property, and will convey title to and possession of the Development Property to the Developer, subject to all the terms and conditions of this Agreement. Section 3.2. Purchase Price; Provisions for Payment; and Fees. (a) The purchase price to be paid to the Authority by the Developer in exchange for the conveyance of the Development Property is $789,303. The purchase price shall be paid in cash from the Developer in the amount of $1.00 and a purchase price note from the Developer in the amount of $789,302 (the "Purchase Price Note") in substantially the form attached hereto as Schedule C payable from Purchase Price Note Available Tax Increments in accordance with the terms of this paragraph. The Purchase Price Note shall accrue interest at the rate of 3.00% per annum. Commencing August 1, 2025, on each February 1 and August 1 thereafter to and including the termination date of the TIF District, or, if the first day of either February 1 or August I should not be a Business Day, the next succeeding Business Day (the "Purchase Price Note Payment Dates") the Authority will credit against the principal amount of the Developer's Purchase Price Note plus accrued interest thereon at the rate of 3.00% per annum, the Purchase Price Note Available Tax Increments. On the termination date of the TIF District, the Authority will forgive the outstanding balance of the Purchase Price Note subject to Section 4.3(d). (b) In addition, the Developer shall assume or pay all taxes, special assessments, including certain deferred special assessments in the amount of $188,295, and similar governmental impositions due and payable in the year of Closing and after the Closing Date and all future years. The Developer will pay: (a) the closing fees charged by the Title Company, if any, utilized to close the transaction contemplated by this Article III; (b) fees for title evidence obtained by Developer; (c) title insurance premium costs; (d) the recording fee for the deed transferring title to the Developer; (e) any survey or environmental investigation costs incurred by it; (f) any transfer taxes, recording fees and Well Disclosure fees required to enable the Developer to record the Deed from the Authority under this Agreement; and (g) fees and charges related to the filing of any instrument required to make title marketable or otherwise change the condition of the Development Property. Section 3.3 Representation and As Is Conveyance. (a) In recognition of the significant economic contributions which the Authority is making to develop the Minimum Improvements by providing the tax increment assistance, the Developer shall take the conveyance of Development Property on an "AS IS" "WHERE IS" basis, with all faults and defects, without any warranties, express or implied, except such representations and warranties as specifically set forth in this Agreement, and the Developer waives any claims against the Authority, the City and their governing bodies' members, officers, agents, including the 9 MN190\163\801191.v1 independent contractors, consultants and legal counsel and employees thereof (collectively the "Indemnified Parties"), for indemnification, contribution, reimbursement or other payments arising under federal and state law and the common law relating to environmental or any other condition of Development Property. (b) The Authority makes no representations concerning nor shall have any responsibility or obligation to undertake any cleanup or remediation on the Development Property. If the Developer does not terminate this Agreement pursuant to Section 3.5(a) hereof, following delivery of the Deed, the Developer agrees to remediate any environmental contamination or pollution on the Development Property that may be required by law. (c) The Authority has no obligation to produce any evidence of title. The Developer will obtain a commitment for an owner's title insurance policy issued by the Title Company naming Developer as the proposed owner -insured of the Development Property (the "Commitment") in accordance with Section 3.4 hereof and review copies of all documents referred to in the Commitment. (d) The Developer is hereby granted the right to enter upon and inspect, analyze and test the Development Property for all reasonable purposes, including conducting soil tests upon 24 hours' notice to the Authority. The Developer shall pay for the cost of all investigations of the Development Property which are ordered by Developer for purposes of conducting its own investigations of the Development Property. Developer hereby agrees to indemnify and hold the Authority harmless from any claims, damages, costs and liability, including without limitation reasonable attorneys' fees, resulting from entering upon the Development Property or the performing of the analysis, tests or inspections referred to in this section. The Developer's environmental consultant has recommended further Phase II environmental investigations with respect to material deposited on the site; the Authority hereby authorizes such investigations. (e) Without limiting its obligations under Section 8.3 hereof, the Developer agrees to indemnify, defend, and hold harmless the "Indemnified Parties, from any claims or actions to the extent arising out of any claim related to the presence of hazardous substances on the Development Property, or any portion thereof, which either (i) arise out of activities of the Developer on the Development Property or (ii) arise out of hazardous substances, asbestos, petroleum substances, or pollutants, irritants or contaminants brought onto the Development Property by the Developer. In addition, the Developer agrees to release the Indemnified Parties from any and all costs, expenses, losses, liabilities, claims, causes of action, demands, and damages relating to the environmental conditions on the Development Property as of the date of Closing, including without limitation any claim the Developer may have to recover from all or any of the Indemnified Parties any costs or expenses incurred by the Developer in performing any remediation of the Development Property. Nothing in this section will be construed to limit or affect any limitations on liability of the City or Authority under State or federal law, including without limitation Minnesota Statutes, Sections 466.04 and 604.02, as amended. Section 3.4 Title. Within 30 days after the date of this Agreement, the Developer shall obtain a commitment for the issuance of a policy of title insurance for the Development Property. The Developer shall have 20 days from the date of its receipt of such commitment and a current survey of the Development Property to review the state of title (including survey matters) to the 10 MN190\163\801191.v1 Development Property and to provide the Authority with a list of written objections to such title (including survey matters). Objections not made within such time will be deemed waived. The Developer shall have 60 days from the date of such objection to effect a cure; provided, however, that the Developer shall have no obligation to cure any objections, and may inform the Authority of such. In the event that the Developer has failed to obtain a cure of such objections within 60 days after the date hereof, the Developer may (i) by the giving of written notice to the Authority terminate this Agreement, upon the receipt of which this Agreement shall be null and void and neither party shall have any liability hereunder, or (ii) waive any title objections and proceed to Closing. The Authority shall have no obligation to take any action to clear defects in the title to the Development Property. The Authority shall take no actions to encumber title to the Development Property between the date of this Agreement and the deed is delivered to the Developer. The Authority expressly agrees that it will not cause or permit the attachment of any mechanics, attorneys, or other liens to any portion of the Development Property prior to the applicable Closing. The Developer shall take no actions to encumber title to any portion of the Development Property between the date of this Agreement and the time the deed for that portion of the Development Property is delivered to the Developer. The Developer expressly agrees that it will not cause or permit the attachment of any mechanics, attorneys, or other liens to any portion of the Development Property prior to the applicable Closing. Notwithstanding termination of this Agreement prior to any Closing, the Developer is obligated to pay all costs to discharge any encumbrances to any portion of the Development Property attributable to actions of the Developer, its employees, officers, agents or consultants, including without limitation any architect, contractor and or engineer. Section 3.5 Contingencies to Closing on Development Property. (a) Developer's Contingencies. The Developer's obligation to close on the purchase of the Development Property is expressly conditioned upon each of the following contingencies being satisfied or waived: (i) obligations required to be performed by Authority under this Agreement as of the Closing Date, including but not limited to, delivery of all of the Authority's Documents described in Section 3.6(b) hereof, and (ii) the Developer shall have received all necessary rezoning, variances, conditional use permits and other permits, site plan and other approvals needed to permit the construction of the Minimum Improvements; and (iii) the Developer shall have completed such environmental investigation (including soil conditions) with respect to the Development Property as it deems prudent and in its sole discretion shall be satisfied with the results thereof, and (iv) the Developer shall have obtained financing acceptable to the Developer for development of the Minimum Improvements; and 11 MN190\163\801191.v1 (v) on the Closing Date, the Authority shall convey the certain property described in Schedule G (the "Apartments Property") to an Affiliate pursuant to the terms of a purchase and development agreement; and (vi) on the Closing Date, the Title Company shall be irrevocably committed to issue to Developer an owner's policy of title insurance with respect to the Development Property in form and substance approved by Developer. (b) Authority's Contingencies. The Authority's obligation to close on the sale of the Development Property is expressly conditioned upon each of the following contingencies being satisfied or waived: (i) Developer shall have performed all of the obligations required to be performed by Developer under this Agreement as of the Closing Date; and (ii) Developer shall have delivered to the Authority all of the Developer's Documents described in Section 3.6(3); and (iii) The Authority shall have approved the sale of the Development Property to the Developer upon satisfaction of all other conditions required by State law; and (iv) The Developer shall have submitted the Construction Plans to the Authority and the Authority shall have approved the Construction Plans pursuant to Section 4.2 hereof; and (v) The Developer shall have received a building permit for the construction of the Minimum Improvements; and (vi) Developer shall have received or the Authority shall have determined that the Developer will receive all necessary rezoning, variances, conditional use permits and other permits, site plan and other approvals needed to permit the construction of the Minimum Improvements including without limitation any needed variances and final Plat or subdivision approval; and (vii) Developer shall have provided evidence that it has financing for development of the Minimum Improvements satisfactory to the Authority in its sole discretion; and (viii) The Authority shall have obtained final Plat approval or obtain the necessary subdivision approvals required for the construction of the Minimum Improvements; and (ix) The Authority shall have determined that the Minimum Improvements to be undertaken by the Developer on the Development Property is in conformance with this Agreement and the development objectives set forth in the Authorizing Resolution; and (c) Authority's and Developer's Options. In the event that any of the foregoing contingencies fail to be satisfied on or before September 30, 2022, the Developer or the Authority, as the case may be, may: 12 MN190\163\801191.v1 (i) terminate this Agreement; or (ii) waive such failure and proceed to close; provided that the contingencies in Section 3.5(a) are solely for the benefit of the Developer and may be waived only by the Developer and the contingencies in Section 3.5(b) are solely for the benefit of the Authority and may be waived only by the Authority; or (iii) the Developer and Authority may mutually agree to extend the Closing Date. Section 3.6 Closing. (a) Time and Place. Subject to the terms and conditions of this Agreement, the Closing on the purchase and sale of the Development Property shall take place on or before the Closing Date and shall take place at such place which is mutually acceptable to the parties. The Authority shall deliver possession of the Development Property on the Closing Date. (b) Authority's Documents. At the Closing, the Authority shall execute, where appropriate, and deliver all of the following "Authority's Documents": (i) The updated plat for the Development Property, fully signed by all required parties and ready to be recorded. (ii) The Deed, in substantially the form as Schedule B attached hereto, properly executed on behalf of the Authority conveying the Development Property to the Developer, together with any other documents reasonably required to be delivered by the Authority. (iii) A transferor's certification stating that Authority is not a "foreign person", "foreign partnership", "foreign trust" or "foreign estate" as those terms are defined in Section 1445 of the Internal Revenue Code, and containing such additional information as may be required thereunder. (iv) A settlement statement consistent with this Agreement. (c) Developer's Documents. At the Closing, the Developer shall execute, where appropriate, and deliver all of the following "Developer's Documents": (i) A sworn construction cost statement executed by the Developer and the general contractor setting forth total Construction Costs of the Minimum Improvements. (ii) Proof of insurance required by this Agreement. (iii) To the extent required and obtainable as of the Closing Date, environmental clearances, subdivision approvals, permits, and any other required governmental approvals for the Minimum Improvements. (iv) An affidavit from Developer indicating on the Closing Date that there are no outstanding, unsatisfied judgments, tax liens or bankruptcies against or involving the 13 MN190\163\801191.v1 Developer; that there has been no skill, labor or material furnished to the Development Property for which payment has not been made or for which mechanic's liens could be filed. (v) Funds sufficient for payment by the Developer at Closing of the recording charges or fees for all documents which are to be placed on record, the fee or charge imposed by any closing agent designated by the Title Company, and any other incidental or related closing costs. (vi) The Construction Documents. (vii) Evidence satisfactory to the Authority that the Developer has sufficient financing to complete the Minimum Improvements. (viii) The Developer's estimate of the total development costs of the Minimum Improvements and sources of revenue to pay such costs and proforma cash flow for the Minimum Improvements. (ix) Such other documents as shall be required to carry out the intent of this Agreement. Section 3.7 Conveyance Subject to Right of Re-entry. The Authority's conveyance of the Development Property to the Developer pursuant to this Agreement will be made subject to a right of reentry for breach of a condition subsequent in favor of the Authority. The condition subsequent is that, barring any Unavoidable Delays, the Developer shall have completed or caused to be completed, not later than July 31, 2023, construction of the foundation of the Minimum Improvements on the Development Property in accordance with permits issued by the City. If Developer fails to satisfy such condition subsequent, the Authority shall provide written notice to the Developer and the Developer shall have 30 days from receipt of the Authority's notice to complete construction of the foundation of the Minimum Improvements. Failure to complete construction in such timeframe shall constitute a breach of the condition subsequent and the Developer shall re - convey the Development Property back to the Authority, without cost to the Authority. If the Developer fails to re -convey the Development Property to the Authority, the Authority may elect to exercise its right of reentry by commencing an action in Wright County District Court to establish the breach of the condition subsequent. If the Authority establishes a breach of the condition subsequent, title to and the right to possession of the Development Property and title to all improvements located thereon reverts to the Authority, without cost to the Authority, and the Developer is not entitled to any compensation from the Authority for the value of the Development Property or any improvements the Developer has made to the Development Property. The Developer must record the Certificate of Release set forth in the Deed in the proper County land records at its expense. Section 3.8. Advance of Purchase Price Note and Other Costs. At Closing, the Authority will forgo receipt of the full fair market value of the Development Property, by accepting the Purchase Price Note from the Developer as partial payment for the Development Property. The total original principal amount of the Purchase Price Note is $789,302. The terms of the Purchase Price Note are described in Section 3.2 hereof. The Authority is pledging Purchase Price Note Available Tax Increment to repayment of the Purchase Price Note. The Developer has no rights or interest in 14 MN190\163\801191.v1 any Tax Increment pledged to the repayment of the Purchase Price Note. The Authority retains the right to use any other Authority funds to prepay the principal of and interest on the Purchase Price Note on any date. Section 3.9. Reimbursement of Public Development Costs; Issuance of TIF Note. The Authority has determined that, in addition to providing the land write down described in Section 3.2, in order to make development of the Minimum Improvements financially feasible, it is necessary to reimburse Developer for a portion of its costs related to site preparation, public improvements, and construction of the affordable housing units of the Minimum Improvements on the Development Property (the "Public Development Costs") through the issuance of the TIF Note, subject to the terms of this Section. The total principal amount of Public Development Costs subject to reimbursement will not exceed $1,590,087. Public Development Costs in excess of the specified total are the responsibility of the Developer. (a) Conditions for Delivery of TIF Note. To reimburse a portion of the Public Development Costs incurred by Developer, the Authority shall issue and the Developer shall purchase the TIF Note in the maximum principal amount of $1,590,087. The Authority shall issue and deliver the TIF Note upon the occurrence of the following: (i) The Developer having delivered to the Authority evidence of Public Development Costs paid or incurred in at least the principal amount of the Note as well as one or more certificates signed by the Developer's duly authorized representative, containing the following: (A) a statement that each cost identified in the certificate is a Public Development Cost as defined in this Agreement and that no part of such cost has been included in any previous certification; (B) reasonable evidence that each identified Public Development Cost has been paid or incurred by or on behalf of the Developer; and (C) a statement that, to the Developer's knowledge, no uncured Event of Default by the Developer has occurred and is continuing under this Agreement; the Authority may, if not satisfied that the conditions described herein have been met, return any certificate with a statement of the reasons why it is not acceptable and requesting such further documentation or clarification as the Authority may reasonably require; (ii) Developer having delivered to the Authority an investment letter in a form reasonably satisfactory to the Authority. (iii) Developer having received from the Authority a certificate of occupancy for the Minimum Improvements. (b) Terms of TIF Note. The terms of the TIF Note will be substantially in the form shown in Schedule F in the form of the Resolution approving this Agreement and authorizing the TIF Note (the "Authorizing Resolution"), and the TIF Note will be subject to all terms of the Authorizing Resolution, which are incorporated herein by reference. (c) Termination of Right to TIF Note. Notwithstanding anything to the contrary in this Agreement, if the conditions for delivery of the TIF Note are not met by the date five (5) years after certification of the TIF District, the Authority's obligation to deliver the TIF Note shall terminate; provided that the remainder of this Agreement shall remain in full force and effect. 15 MN190\163\801191.v1 (d) Assignment of TIFNote. The Authority acknowledges that the Developer may assign the TIF Note to one or more lenders that provide part of the financing for the construction of the Minimum Improvements. The Authority consents to such an assignment, conditioned upon the satisfaction of the conditions set forth in the Note, the receipt of an investment letter from such third party in a form reasonably acceptable to the Authority and an assignment in a form approved by the Board of Commissioners of the Authority. (e) Qualifications. The Developer understands and acknowledges that the Authority makes no representations or warranties regarding the amount of TIF Note Available Tax Increment, or that revenues pledged to the TIF Note will be sufficient to pay the principal amount of and the interest on the TIF Note. Developer further acknowledges that estimates of Tax Increment prepared by the Authority or its municipal advisors in connection with the TIF District or this Agreement are for the benefit of the Authority, and are not intended as representations on which the Developer may rely. If the Public Development Costs exceed the maximum aggregate principal amount of the TIF Note, such excess is the sole responsibility of Developer. The TIF Note shall be a special and limited obligation of the Authority and not a general obligation of the Authority or the City, and only TIF Note Available Tax Increments shall be used to pay the principal of the TIF Note. (f) Termination of Payments. The Authority's obligation to make payments on the TIF Note on any Payment Date or any date thereafter shall be conditioned upon the requirement that (i) there shall not at that time be an Event of Default that has occurred and is continuing under this Agreement that has not been cured during the applicable cure period, (ii) this Agreement shall not have been terminated pursuant to Section 9.2, and (iii) a certificate of occupancy has been issued for the Project. Section 3.10. No Business Subsidy. The parties agree and understand that the primary purpose of any financial assistance to the Developer under this Agreement is to facilitate development of housing and is therefore not a "business subsidy" within the meaning of Minnesota Statutes, Sections 116J.993 to 1161995 (the "Business Subsidy Act"). The Developer releases and waives any claim against the Authority and its governing body members, officers, agents, and employees thereof arising from application of the Business Subsidy Act to this Agreement, including without limitation any claim that the Authority failed to comply with the Business Subsidy Act with respect to this Agreement. Section 3.11. Payment of Administrative Costs. The Authority acknowledges that Developer has deposited with the Authority $10,000. The Authority will use such deposit to pay "Administrative Costs," which term means out of pocket costs incurred by the Authority together with staff costs of the Authority, all attributable to or incurred in connection with the negotiation and preparation of this Agreement, the TIF Plan, and other documents and agreements in connection with the development of the Development Property. At Developer's request, but no more often than monthly, the Authority will provide Developer with a written report including invoices, time sheets or other comparable evidence of expenditures for Administrative Costs and the outstanding balance of funds deposited. If at any time the Authority determines that the deposit is insufficient to pay Administrative Costs, the Developer is obligated to pay such shortfall within twenty (20) days after receipt of a written notice from the Authority containing evidence of the unpaid costs. If any balance of funds deposited remains upon issuance of the Certificate of Completion pursuant to Section 4.4 of this Agreement, the Authority shall promptly return such balance to Developer; provided that Developer remains obligated to pay subsequent Administrative 16 MN190\163\801191.v1 Costs related to any amendments to this Agreement requested by Developer. Upon termination of this Agreement in accordance with its terms, the Developer remains obligated under this section for Administrative Costs. 17 MN190\163\801191.v1 ARTICLE IV Construction of Minimum Improvements Section 4.1. Construction of Minimum Improvements. The Developer agrees that it will construct the Minimum Improvements on the Development Property, in accordance with the approved Construction Plans, and will operate and maintain, preserve and keep the Minimum Improvements or cause the Minimum Improvements to be maintained, preserved and kept with the appurtenances and every part and parcel thereof, in good repair and condition. Section 4.2 Construction Plans. (a) Before commencement of construction of the Minimum Improvements, the Developer shall submit the Construction Plans to the Authority. The Construction Plans shall provide for the construction of the Minimum Improvements, as applicable, and shall be in conformity with this Agreement and all applicable State and local laws and regulations. The Authority will approve such Construction Plans in writing if. (i) such Construction Plans conform to the terms and conditions of this Agreement; (ii) such Construction Plans conform to all applicable federal, state and local laws, ordinances, rules and regulations; (iii) such Construction Plans are adequate to provide for construction of the Minimum Improvements; and (iv) no Event of Default has occurred and remains uncured. No approval by the Authority shall relieve the Developer of the obligation to comply with the terms of this Agreement, applicable federal, state and local laws, ordinances, rules and regulations, or to construct the Minimum Improvements in accordance therewith. No approval by the Authority shall constitute a waiver of an Event of Default or waiver of any State or City building or other code requirements that may apply. If approval of the Construction Plans is requested by the Developer in writing at the time of submission, such Construction Plans shall be deemed approved unless rejected in writing by the Authority, in whole or in part. Such rejections shall set forth in detail the reasons therefor, and shall be made within 30 days after the date of their receipt by the Authority. If the Authority rejects any Construction Plans in whole or in part, the Developer shall submit new or corrected Construction Plans within 30 days after written notification to the Developer of the rejection. The provisions of this Section relating to approval, rejection and resubmission of corrected Construction Plans shall continue to apply until the Construction Plans have been approved by the Authority. The Authority's approval shall not be unreasonably withheld. Said approval shall constitute a conclusive determination that the Construction Plans (and the Minimum Improvements, constructed in accordance with said plans) comply to the Authority's satisfaction with the provisions of this Agreement relating thereto. (b) The Developer hereby waives any and all claims and causes of action whatsoever resulting from the review of the Construction Plans by the Authority and/or any changes in the Construction Plans requested by the Authority. Neither the Authority nor any employee or official of the Authority shall be responsible in any manner whatsoever for any defect in the Construction Plans or in any work done pursuant to the Construction Plans, including changes requested by the Authority. (c) If the Developer desires to make any material change in the Construction Plans after their approval by the Authority, the Developer shall submit the proposed change to the Authority for 18 MN190\163\801191.v1 its approval. If the Construction Plans, as modified by the proposed change, conform to the requirements of this Section with respect to such previously approved Construction Plans, the Authority shall approve the proposed change and notify the Developer in writing of its approval. Such change in the Construction Plans shall, in any event, be deemed approved by the Authority unless rejected, in whole or in part, by written notice by the Authority to the Developer, setting forth in detail the reasons therefor. Such rejection shall be made within 30 days after receipt of the notice of such change. The Authority's approval of any such change in the Construction Plans will not be unreasonably withheld. Nothing in this paragraph will relieve the Developer of the obligation to comply with any City ordinances or procedures regarding changes in Construction Plans, and any approvals by the Authority hereunder will not constitute approval by any Authority officials regarding any City requirement related to construction of the Minimum Improvements. (d) The approval of the Construction Plans, or any proposed amendment to the Construction Plans, by the Authority does not constitute a representation or warranty by the Authority that the Construction Plans or the Minimum Improvements comply with any applicable building code, health or safety regulation, zoning regulation, environmental law, labor law or regulation, or other law or regulation, or that the Minimum Improvements will meet the qualifications for issuance of a certificate of occupancy, or that the Minimum Improvements will meet the requirements of the Developer or any other users of the Minimum Improvements. Approval of the Construction Plans, or any proposed amendment to the Construction Plans, by the Authority will not constitute a waiver of an Event of Default. Nothing in this Agreement shall be construed to relieve the Developer of its obligations to receive any required approval of the Construction Plans from any City department. Section 4.3 Commencement and Completion of Construction. (a) Subject to Unavoidable Delays, the Developer must commence construction of the Minimum Improvements not later than April 30, 2023. The construction of the Minimum Improvements shall be deemed to be commenced when physical improvements have been made to the Development Property, including grading, excavation, or other physical site preparation work (in accordance with a permit issued by the City). (b) Subject to Unavoidable Delays, the Developer must substantially complete construction of all Minimum Improvements by December 31, 2024. The construction of the Minimum Improvements will be considered substantially complete on the date when (i) the Developer has received a temporary or permanent certificate of occupancy issued by the City for the Minimum Improvements, as applicable, and (ii) the Authority has determined the Minimum Improvements have been constructed substantially in accordance with the approved Construction Plans as provided in Section 4.2. Completion shall be evidenced by a Certificate of Completion as described in Section 4.4. (c) Developer agrees for itself, its successors and assigns, and every successor in interest to the Development Property, or any part thereof, that the Developer, and such successors and assigns, shall promptly begin and diligently prosecute to completion the development of the Development Property through the construction of the Minimum Improvements thereon, and that such construction shall in any event be commenced and completed within the period specified in this Section 4.3. Subsequent to conveyance of the Development Property, or any part thereof, to the Developer, and until construction of the Minimum Improvements has been completed, the Developer 19 MN190\163\801191.v1 shall make reports, in such detail and at such times as may reasonably be requested by the Authority, as to the actual progress of the Developer with respect to such construction. (d) If the Developer does not complete construction of the Minimum Improvements in accordance with the schedule set forth in Section 4.3 hereof, the Developer shall repay the principal amount of the Purchase Price Note in full. The Developer shall pay the Purchase Price Note within 30 days of written request from the Authority. Section 4.4 Certificate of Completion. At the request of the Developer, the Authority will issue a Certificate of Completion in accordance with this Section. The Developer may notify the Authority when construction of the Minimum Improvements has been substantially completed. The Authority shall, within 20 days after such notification, inspect the Minimum Improvements in order to determine whether the Minimum Improvements have been substantially completed and constructed in accordance with all local, state and federal laws and regulations (including without limitation environmental, labor, zoning, building code, housing code, and public health laws and regulations), and any applicable permits and in substantial conformity with this Agreement and the final Construction Plans approved by the Authority. Section 4.5. Records and Reports. (a) The Authority, through any authorized representatives, shall have the right at all reasonable times after reasonable written notice to inspect, examine and copy all books and records of Developer relating to the Minimum Improvements that are reasonably relevant to the Developer's obligations under this Agreement. Such records shall be kept and maintained by Developer through the Termination Date. (b) Upon request, the Developer also agrees to submit to the Authority written reports so as to allow the Authority to remain in compliance with reporting requirements under state statutes. Section 4.6. Income Limits. (a) The Authority and the Developer understand and agree that the TIF District will constitute a "housing district" under Section 469.174, subdivision 11 of the TIF Act. The Developer covenants that, for the duration of the TIF District, it will comply with all income requirements for a qualified residential rental project as defined in Section 142(d) of the Internal Revenue Code of 1986, as amended. Specifically, the Developer agrees to reserve at least 40% of the units of the Minimum Improvements for families with incomes at or below 60% of area median income in the County, adjusted for family size. (b) On or before February 2 of each year for the duration of the TIF District, the Developer shall submit evidence in substantially the form in Schedule E, showing that the Minimum Improvements meet the relevant income requirements. The parties agree and understand that the Developer may retain a manager (the "Manager") who will review such evidence and will certify to the Authority that the TIF District remains a housing district under the TIF Act. Developer is responsible for any costs incurred to compensate the Manager (or any successor) for such activities. (c) If the Authority receives notice from the Manager, if any, the State department of 20 MN190\163\801191.v1 revenue, the State auditor, any Tax Official or any court of competent jurisdiction that the TIF District does not qualify as a "housing district," such event shall be deemed an Event of Default under this Agreement and the Authority shall immediately stop payments of Available Tax Increment to pay principal of and interest on the TIF Note. In addition to any remedies available to the Authority under Article IX hereof, the Developer shall indemnify, defend, and hold harmless the Authority for any damages or costs resulting therefrom. (The remainder of this page is intentionally left blank.) 21 MN190\163\801191.v1 ARTICLE V IncnranrP Section 5.1. Insurance. (a) The Developer will provide and maintain at all times during the process of constructing the Minimum Improvements an All Risk Broad Form Basis Insurance Policy and, from time to time during that period, at the request of the Authority, furnish the Authority with proof of payment of premiums on policies covering the following: (i) Builder's risk insurance, written on the so-called "Builder's Risk -- Completed Value Basis," in an amount equal to one hundred percent (100%) of the insurable value of the Minimum Improvements at the date of completion, and with coverage available in nonreporting form on the so-called "all risk" form of policy. The interest of the Authority shall be protected in accordance with a clause in form and content satisfactory to the Authority; (ii) Commercial general liability insurance (including operations, contingent liability, operations of subcontractors, completed operations, and contractual liability insurance) together with an Owner's Policy with limits against bodily injury and property damage of not less than $1,000,000 for each occurrence (to accomplish the above -required limits, an umbrella excess liability policy may be used). The Authority shall be listed as an additional insured on the policy; and (iii) Workers' compensation insurance, with statutory coverage, provided that the Developer may be self-insured with respect to all or any part of its liability for workers' compensation. (b) Upon completion of construction of the Minimum Improvements and prior to the Termination Date, the Developer shall maintain, or cause to be maintained, at its cost and expense, and from time to time at the request of the Authority shall furnish proof of the payment of premiums on, insurance as follows: (i) Insurance against loss and/or damage to the Minimum Improvements under a policy or policies covering such risks as are ordinarily insured against by similar businesses. (ii) Commercial general public liability insurance, including personal injury liability (with employee exclusion deleted), against liability for injuries to persons and/or property, in the minimum amount for each occurrence and for each year of $1,000,000, and shall be endorsed to show the City and Authority as additional insureds. (iii) Such other insurance, including workers' compensation insurance respecting all employees of the Developer, in such amount as is customarily carried by like organizations engaged in like activities of comparable size and liability exposure; provided that the 22 MN190\163\801191.v1 Developer may be self-insured with respect to all or any part of its liability for workers' compensation. (c) All insurance required in Article V of this Agreement shall be taken out and maintained in responsible insurance companies selected by the Developer that are authorized under the laws of the State to assume the risks covered thereby. Upon request, the Developer will deposit annually with the Authority policies evidencing all such insurance, or a certificate or certificates or binders of the respective insurers stating that such insurance is in force and effect. Unless otherwise provided in this Article V of this Agreement each policy shall contain a provision that the insurer shall not cancel nor modify it in such a way as to reduce the coverage provided below the amounts required herein without giving written notice to the Developer and the Authority at least thirty (30) days before the cancellation or modification becomes effective. In lieu of separate policies, the Developer may maintain a single policy, blanket or umbrella policies, or a combination thereof, having the coverage required herein, in which event the Developer shall deposit with the Authority a certificate or certificates of the respective insurers as to the amount of coverage in force upon the Minimum Improvements. (d) The Developer agrees to notify the Authority immediately in the case of damage exceeding $250,000 in amount to, or destruction of, the Minimum Improvements or any portion thereof resulting from fire or other casualty. In such event the Developer will forthwith repair, reconstruct, and restore the Minimum Improvements to substantially the same or an improved condition or value as it existed prior to the event causing such damage and, to the extent necessary to accomplish such repair, reconstruction, and restoration, the Developer will apply the net proceeds of any insurance relating to such damage received by the Developer to the payment or reimbursement of the costs thereof. The Developer shall complete the repair, reconstruction, and restoration of the Minimum Improvements, regardless of whether the net proceeds of insurance received by the Developer for such purposes are sufficient to pay for the same. Any net proceeds remaining after completion of such repairs, construction, and restoration shall be the property of the Developer. (e) In lieu of the Developer's obligation to reconstruct the Minimum Improvements as set forth in this Section, the Developer shall have the option of terminating the TIF Note and paying to the Authority an amount that, in the opinion of the Authority and its fiscal consultant, is sufficient to pay in full the outstanding principal and accrued interest on the Purchase Price Note. (f) The Developer and the Authority agree that all of the insurance provisions set forth in this Article V shall terminate upon the termination of this Agreement. Section 5.2. Subordination. Notwithstanding anything to the contrary contained in this Article V, the rights of the Authority with respect to the receipt and application of any proceeds of insurance shall, in all respects, be subject and subordinate to the rights of any lender under a Mortgage approved pursuant to Article VII of this Agreement. 23 MN190\163\801191.v1 ARTICLE VI Delinauent Taxes and Review of Taxes Section 6.1. Right to Collect Delinquent Taxes. The Developer agrees for itself, its successors, and assigns, that in addition to the obligation pursuant to statute to pay real estate taxes, it is also obligated by reason of this Agreement to pay before delinquency all real estate taxes assessed against the Development Property and the Minimum Improvements. The Developer acknowledges that this obligation creates a contractual right on behalf of the Authority through the Termination Date to sue the Developer or its successors and assigns to collect delinquent real estate taxes and any penalty or interest thereon and to pay over the same as a tax payment to the county auditor. In any such suit in which the Authority is the prevailing party, the Authority shall also be entitled to recover its costs, expenses, and reasonable attorney fees. Section 6.2. Review of Taxes. The Developer agrees that prior to the Termination Date, it will not cause a reduction in the real property taxes paid in respect of the Development Property through: (a) willful destruction of the Minimum Improvements or any part thereof; (b) willful refusal to reconstruct damaged or destroyed property pursuant to Section 5.1 of this Agreement, except as otherwise provided in Section 5.1(e); or (c) engaging in any other proceedings, whether legal, administrative or equitable, with any administrative body in the County or State or court of the State or federal government to reduce the amount of real estate or other taxes assessed against the Development Property or the Minimum Improvements. The Developer also agrees that it will not, prior to the Termination Date, apply for a deferral of property tax on the Development Property pursuant to any law, or transfer or permit transfer of the Development Property to any entity whose ownership or operation of the property would result in the Development Property being exempt from real estate taxes under State law. (The remainder of this page is intentionally left blank.) 24 MN190\163\801191.v1 ARTICLE VII Financing Section 7.1. Financing. (a) Before conveyance of the Development Property, the Developer shall submit to the Authority evidence of one or more commitments for mortgage financing which, together with committed equity for such construction, is sufficient for the construction of the Minimum Improvements. Such commitments may be submitted as short term financing, long term mortgage financing, a bridge loan with a long-term take-out financing commitment, or any combination of the foregoing. (b) If the Authority finds that the mortgage financing is sufficiently committed and adequate in amount to provide for the construction of the Minimum Improvements, then the Authority shall notify the Developer in writing of its approval. Such approval shall not be unreasonably withheld and either approval or rejection shall be given within thirty (30) days from the date when the Authority is provided the evidence of financing. A failure by the Authority to respond to such evidence of financing shall be deemed to constitute an approval hereunder. If the Authority rejects the evidence of financing as inadequate, it shall do so in writing specifying the basis for the rejection. In any event the Developer shall submit adequate evidence of financing within thirty (30) days after such rejection. Section 7.2. Authority's Option to Cure Default on Mortgagee. In the event that there occurs a default under any Mortgage authorized pursuant to Article VII of this Agreement, the Developer shall cause the Authority to receive copies of any notice of default received by the Developer from the holder of such Mortgage. Thereafter, the Authority shall have the right, but not the obligation, to cure any such default on behalf of the Developer within such cure periods as are available to the Developer under the Mortgage documents. Section 7.3. Subordination and Modification for the Benefit of Mortgagee. In order to facilitate the Developer obtaining financing for purchase of the Development Property and for construction of the Minimum Improvements according to the Construction Plans, the Authority agrees to subordinate certain rights under this Agreement, provided that (a) such subordination shall be subject to such reasonable terms and conditions as the Authority and the holder of any mortgage mutually agree in writing after approval by the Board of Commissioners of the Authority, and (b) the Authority's obligation to subordinate is contingent on the Authority's approval of the financing in accordance with Section 7.1 hereof. 25 MN190\163\801191.v1 ARTICLE VIII Prohibitions Against Assignment and Transfer; Indemnification Section 8.1. Representation as to Development. The Developer represents and agrees that its purchase of the Development Property, and its other undertakings pursuant to the Agreement, are, and will be used, for the purpose of development of the Development Property and not for speculation in land holding. Section 8.2. Prohibition Against Developer's Transfer of Property and Assignment of Agreement. The Developer represents and agrees that until the Termination Date: (a) Except only by way of security for, and only for and the purpose of obtaining financing necessary to enable the Developer or any successor in interest to the Development Property, or any part thereof, to perform its obligations with respect to making the Minimum Improvements under the Agreement, and any other purpose authorized by this Agreement, the Developer has not made or created and will not make or create or suffer to be made or created any total or partial sale, assignment, conveyance, or lease, or any trust or power, or transfer in any other mode or form of or with respect to this Agreement or the Development Property or any part thereof or any interest therein, or any contract or agreement to do any of the same, to any person or entity (collectively, a "Transfer"), without the prior written approval of the Authority's board of commissioners, which may not be unreasonably withheld, subject to Section 8.2(b). The term "Transfer" does not include (i) encumbrances made or granted by way of security for, and only for, the purpose of obtaining construction, interim or permanent financing necessary to enable the Developer or any successor in interest to the Development Property or to construct the Minimum Improvements or component thereof; (ii) any lease, license, easement or similar arrangement entered into in the ordinary course of business related to operation of the Minimum Improvements; or (iii) an assignment or other transfer to an Affiliate or that is otherwise permitted under Section 10.13 of this Agreement. (b) In the event the Developer, upon Transfer of the Development Property, seeks to be released from its obligations under this Agreement, the Authority shall be entitled to require, except as otherwise provided in this Agreement, as conditions to any such Transfer that: (i) Any proposed transferee shall have the qualifications and financial responsibility, in the reasonable judgment of the Authority, necessary and adequate to fulfill the obligations undertaken in this Agreement and the Purchase Price Note by the Developer. (ii) Any proposed transferee, by instrument in writing satisfactory to the Authority and in form recordable among the land records, shall, for itself and its successors and assigns, and expressly for the benefit of the Authority, have expressly assumed all of the obligations of the Developer under this Agreement (including the Purchase Price Note) and agreed to be subject to all the conditions and restrictions to which the Developer is subject; provided, however, that the fact that any transferee of, or any other successor in interest whatsoever to, the Development Property, or any part thereof, shall not, for whatever reason, have assumed such obligations or so agreed, and shall not (unless and only to the extent otherwise 26 MN190\163\801191.v1 specifically provided in this Agreement or agreed to in writing by the Authority) deprive the Authority of any rights or remedies or controls with respect to the Development Property or any part thereof or the construction of the Minimum Improvements; it being the intent of the parties as expressed in this Agreement that (to the fullest extent permitted at law and in equity and excepting only in the manner and to the extent specifically provided otherwise in this Agreement) no transfer of, or change with respect to, ownership in the Development Property or any part thereof, or any interest therein, however consummated or occurring, and whether voluntary or involuntary, shall operate, legally or practically, to deprive or limit the Authority of or with respect to any rights or remedies on controls provided in or resulting from this Agreement with respect to the Minimum Improvements that the Authority would have had, had there been no such transfer or change. In the absence of specific written agreement by the Authority to the contrary, no such transfer or approval by the Authority thereof shall be deemed to relieve the Developer, or any other party bound in any way by this Agreement or otherwise with respect to the construction of the Minimum Improvements, from any of its obligations with respect thereto. (iii) Any and all instruments and other legal documents involved in effecting the transfer of any interest in this Agreement and the Purchase Price Note or the Development Property governed by this Article VIII, shall be in a form reasonably satisfactory to the Authority. (iv) The Developer and its transferees shall comply with such other conditions as the Authority may reasonably require in order to achieve and safeguard the purposes of the TIF Act and this Agreement. (v) The Developer agrees to pay all reasonable costs and expenses, including fees of legal counsel retained by the Authority, to review the documents submitted to the Authority in connection with any such transfer. In the event the foregoing conditions are satisfied then the Developer shall be released from its obligation under this Agreement. Section 8.3. Release and Indemnification Covenants. (a) The Developer releases from and covenants and agrees that the Indemnified Parties shall not be liable for and agrees to indemnify and hold harmless the Authority and the governing body members, officers, agents and employees thereof against any loss or damage to property or any injury to or death of any person occurring at or about or resulting from any defect in the Minimum Improvements or the Development Property. (b) Except for any willful misrepresentation or any willful or wanton misconduct of the Indemnified Parties, and except for any breach by any of the Indemnified Parties of their obligations under this Agreement, the Developer agrees to protect and defend the Indemnified Parties, now or forever, and further agrees to hold the aforesaid harmless from any claim, demand, suit, action or other proceeding whatsoever by any person or entity whatsoever arising or purportedly arising from 27 MN190\163\801191.v1 this Agreement, or the transactions contemplated hereby or the acquisition, construction, installation, ownership, and operation of the Minimum Improvements. (c) Except for any willful misrepresentation or any willful or wanton misconduct of the Indemnified Parties, and except for any breach by any of the Indemnified Parties of their obligations under this Agreement, the Indemnified Parties shall not be liable for any damage or injury to the persons or property of the Developer or its officers, agents or employees or any other person who may be about the Development Property or Minimum Improvements. (d) All covenants, stipulations, promises, agreements and obligations of the Authority contained herein shall be deemed to be the covenants, stipulations, promises, agreements and obligations of the Authority and not of any governing body member, officer, agent or employee of the Authority or the City in the individual capacity thereof. (The remainder of this page is intentionally left blank.) 28 MN190\163\801191.v1 ARTICLE IX Events of Default Section 9.1. Events of Default Defined. The following shall be "Events of Default" under this Agreement, and the term "Event of Default" shall mean, whenever it is used in this Agreement, any one or more of the following events, after the non -defaulting party provides sixty (60) days' written notice to the defaulting party of the event, but only if the event has not been cured within said sixty (60) days or, if the event is by its nature incurable within sixty (60) days, the defaulting party does not, within such sixty (60) day period, provide assurances reasonably satisfactory to the party providing notice of default that it is proceeding with due diligence to cure such default and the event will be cured as soon as reasonably possible: (a) any failure by either party to this Agreement to observe or perform any material covenant, condition, obligation or agreement on its part to be observed or performed under this Agreement or under any other agreement entered into between the Developer and the Authority in connection with development of the Development Property; (b) any default by Developer under a Mortgage, if any, that entitles the mortgagee to foreclose the Mortgage; and (c) failure by the Developer to timely pay any ad valorem real property taxes assessed with respect to the Development Property. Section 9.2. Remedies on Default. Whenever any Event of Default referred to in Section 9.1 of this Agreement occurs, the non -defaulting party may exercise its rights under this Section 9.2: (a) Suspend its performance under this Agreement until it receives assurances that the defaulting party will cure its default and continue its performance under this Agreement. (b) The Authority may cancel and rescind or terminate this Agreement and/or the TIF Note. (c) The Authority may suspend its performance under this Agreement and the TIF Note. Interest on the TIF Note shall not accrue during the period of any suspension of payment. (d) The Authority may demand that the Developer immediately repay the outstanding principal balance of and interest on the Purchase Price Note. (e) The Authority may take whatever action, including legal, equitable or administrative action, which may appear necessary or desirable to collect any payments due under this Agreement, or to enforce performance and observance of any obligation, agreement, or covenant under this Agreement. The Authority agrees that any mortgagee of the Development Property will have the right, but not the obligation, to cure any default by Developer and any such cure will be deemed to have 29 MN190\163\801191.v1 been made by Developer. Section 9.3. No Remedy Exclusive. No remedy herein conferred upon or reserved to the Authority or Developer is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. In order to entitle the Authority to exercise any remedy reserved to it, it shall not be necessary to give notice, other than such notice as may be required in this Article IX. Section 9.4. No Additional Waiver Implied by One Waiver. In the event any agreement contained in this Agreement should be breached by either party and thereafter waived by the other party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other concurrent, previous or subsequent breach hereunder. (The remainder of this page is intentionally left blank.) 30 MN190\163\801191.v1 ARTICLE X Additional Provisions Section 10.1. Conflict of Interests; Authority Representatives Not Individually Liable. The Authority and the Developer, to the best of their respective knowledge, represent and agree that no member, official, or employee of the Authority shall have any personal interest, direct or indirect, in this Agreement, nor shall any such member, official, or employee participate in any decision relating to this Agreement which affects his personal interests or the interests of any corporation, partnership, or association in which he is, directly or indirectly, interested. No member, official, or employee of the Authority shall be personally liable to the Developer, or any successor in interest, in the event of any default or breach by the Authority or County or for any amount which may become due to the Developer or successor or on any obligations under the terms of this Agreement. Section 10.2. Equal Employment Opportunity. The Developer, for itself and its successors and assigns, agrees that during the construction of the Minimum Improvements provided for in this Agreement it will comply with all applicable federal, state, and local equal employment and non- discrimination laws and regulations. Section 10.3. Restrictions on Use. The Developer agrees that until the Termination Date, the Developer, and its successors and assigns, shall use the Development Property for the operation of the Minimum Improvements for uses described in the definition of such term in this Agreement, and shall not discriminate upon the basis of race, color, creed, sex or national origin in the sale, lease, or rental or in the use or occupancy of the Development Property or any improvements erected or to be erected thereon, or any part thereof. Section 10.4. Provisions Not Merged With Deed. None of the provisions of this Agreement are intended to or shall be merged by reason of any deed transferring any interest in the Development Property and any such deed shall not be deemed to affect or impair the provisions and covenants of this Agreement. Section 10.5. Titles of Articles and Sections. Any titles of the several parts, Articles, and Sections of this Agreement are inserted for convenience of reference only and shall be disregarded in construing or interpreting any of its provisions. Section 10.6. Notices and Demands. Except as otherwise expressly provided in this Agreement, a notice, demand, or other communication under this Agreement by either party to the other shall be sufficiently given or delivered if it is dispatched by registered or certified mail, postage prepaid, return receipt requested, or delivered personally; and (a) in the case of the Developer, is addressed to or delivered personally to the Developer at 7730 Laredo Drive, Unit 446, Chanhassen, MN 55317 and (b) in the case of the Authority, is addressed to or delivered personally to the Authority at 505 Walnut Street, Suite 1, Monticello, Minnesota 55362, Attn: Executive Director; or at such 31 MN190\163\801191.v1 other address with respect to either such party as that parry may, from time to time, designate in writing and forward to the other as provided in this Section. Section 10.7. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same instrument. Section 10.8. Recording. The Authority may record this Agreement and any amendments thereto with the Wright County recorder. The Developer shall pay all costs for recording. Section 10.9. Amendment. This Agreement may be amended only by written agreement approved by the Authority and the Developer. Section 10.10. AuthorityApprovals. Unless otherwise specified, any approval required by the Authority under this Agreement may be given by the Authority Representative as determined by the Authority in their sole discretion. Section 10.11. Termination. This Agreement terminates on the Termination Date. Upon termination of this Agreement, the Authority shall promptly execute any reasonable documents necessary to remove this Agreement from the title records of the Development Property. Notwithstanding the foregoing, the Developer's obligations under Sections 3.3(e), 8.3 and 3.11 shall survive termination. Section 10.12. Choice of Law and Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota. Any disputes, controversies, or claims arising out of this Agreement shall be heard in the state or federal courts of Minnesota, and all parties to this Agreement waive any objection to the jurisdiction of these courts, whether based on convenience or otherwise. Section 10.13. Developer's Right to Assign this Agreement at or before Closing. The Authority agrees that Headwaters Development LLC may assign or otherwise transfer its rights under this Agreement, or its right to receive the conveyance of the Development Property at the Closing, to any Affiliate of Headwaters Development LLC, or any other entity in which the direct or indirect owners of Headwaters Development LLC own a material interest, without the Authority's consent provided that the Developer must provide a signed copy of an assignment and assumption agreement between the Developer and the new owner whereby the new owner agrees to comply with all provisions of this Agreement (the "Assignment"). If the Development Property is conveyed at the Closing to such an affiliate of Headwaters Development LLC, upon delivery of the Assignment to the Authority, Headwaters Development LLC will be released from all obligations and liabilities of the "Developer" under this Agreement, and the transferee of the Development Property will be solely liable for the obligations and liabilities of the Developer. 32 MN190\163\801191.v1 IN WITNESS WHEREOF, the Authority has caused this Agreement to be duly executed in its name and behalf and its seal to be hereunto duly affixed and the Developer has caused this Agreement to be duly executed in its name and behalf on or as of the date first above written. CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY By Its President By Its Executive Director STATE OF MINNESOTA ) SS. COUNTY OF WRIGHT ) The foregoing instrument was acknowledged before me this day of , 2022, by and , the President and Executive Director of the City of Monticello Economic Development Authority, a public body corporate and politic, on behalf of the Authority. Notary Public S-1 MN190\163\801191.v1 HEADWATERS DEVELOPMENT LLC, a Minnesota limited liability company LOW STATE OF MINNESOTA ) SS. COUNTY OF ) Its The foregoing instrument was acknowledged before me this day of , 2022 by , the of Headwaters Development LLC, a Minnesota limited liability company, on behalf of the company. Notary Public S-1 MN190\163\801191.v1 SCHEDULE A Development Property The real property in the City of Monticello, County of Wright, State of Minnesota, legal described as follows: Lots 1-21, Block 1, Country Club Manor First Addition Lots 1-11, Block 2, Country Club Manor First Addition Lots 1-11, Block 3, Country Club Manor First Addition Lots 1-21, Block 4, Country Club Manor First Addition Outlot A, Country Club Manor First Addition Outlot B, Country Club Manor First Addition Outlot C, Country Club Manor First Addition A-1 MN190\163\801191.v1 DEED TAX DUE: $ ECRV: (month/day/year) SCHEDULE B FORM OF QUIT CLAIM DEED op 3 inches reserved for recordi QUIT CLAIM DEED DATE: _ FOR VALUABLE CONSIDERATION, City of Monticello Economic Development Authority (insert name of Grantor) a public body corporate and politic under the laws of Minnesota ("Grantor"), hereby conveys and quitclaims to (insert name of Grantee) a Minnesota limited liability company under the laws of Minnesota, ("Grantee"), real property in Wright County, Minnesota, legally described as follows: Lots 1-21, Block 1, Country Club Manor First Addition Lots 1-11, Block 2, Country Club Manor First Addition Lots 1-11, Block 3, Country Club Manor First Addition Lots 1-21, Block 4, Country Club Manor First Addition Outlot A, Country Club Manor First Addition Outlot B, Country Club Manor First Addition Outlot C, Country Club Manor First Addition Check here if all or part of the described real property is Registered (Torrens) ❑ together with all hereditaments and appurtenances and subject to the Right of Re -Entry for Breach of Condition Subsequent in favor of Grantor which is described on Exhibit A. Check applicable box: ❑ The Seller certifies that the Seller does not know of any wells on the described property. ❑ A well disclosure certificate accompanies this document (If electronically filed, insert WDC number: ). ❑ I am familiar with the property described in this instrument and I certify that the status and number of wells on the described real property have not changed since the last previously IM MN190\163\801191.vl City of Monticello Economic Development Authority By: Steve Johnson Its: President filed well disclosure certificate. State of Minnesota, County of WRIGHT By: Jim Thares Its: Executive Director This instrument was acknowledged before me on , 20 by Steve Johnson, as President and by Jim Thares, as Executive Director of the City of Monticello Economic Development Authority (the "Authority"), a public body corporate and politic under the Constitution and laws of the State of Minnesota, on behalf of the Authority. THIS INSTRUMENT WAS DRAFTED BY (insert name and address) Kennedy & Graven, Chartered (GAF) 150 South Fifth Street, Suite 700 Minneapolis, MN 55402 MN190\163\801191.vl Notary Public TAX STATEMENTS FOR THE REAL PROPERTY DESCRIBED IN THIS INSTRUMENT SHOULD BE SENT TO: (insert name and address of Grantee to whom tax statements should be sent) c/o Headwaters Development LLC 7730 Laredo Dr., Unit 446 Chanhassen, MN 55317 EXHIBIT A TO QUIT CLAIM DEED EXECUTED BY THE CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY, GRANTOR, IN FAVOR OF LLC, GRANTEE. The City of Monticello Economic Development Authority (the "Grantor") is conveying the property described in the attached Quit Claim Deed (the "Development Property") to LLC ("Grantee") subject to a right of re-entry for breach of conditions subsequent in favor of Grantor. The condition subsequent (such agreement, as the same may be modified or amended, the "Development Agreement") (capitalized terms utilized herein and not separately defined shall have the meanings ascribed to them in the Development Agreement) is that barring any Unavoidable Delays, the Developer shall have completed, by , 2022, construction of the foundation of the Minimum Improvements (as those terms are defined in the Development Agreement) on the Development Property in accordance with permits issued by the Grantor. If, solely as a result of the City's own willful misconduct, the City takes more than 30 days to review the Developer's complete request for a building permit, the date in the preceding sentence shall be extended by the number of days in excess of 30 that it takes the City to issue a building permit. If the Grantee breaches the condition subsequent, and does not cure such breach within the period and in the manner provided in the Development Agreement, the Grantee shall re -convey the Development Property to the Grantor. If the Grantee fails to re -convey the Development Property to the Grantor, the Grantor may elect to exercise its right of reentry by commencing an action in Wright County District Court to establish the breach of the condition subsequent. If the Grantor exercises its right of reentry and establishes a breach of the condition subsequent, title to and the right to possession of the Development Property and title to all improvements located thereon reverts to the Grantor, and the Grantee is not entitled to any compensation from the City or the Grantor for the value of the Development Property or any improvements the Grantee has made thereto except as specifically provided in the Development Agreement. The Grantee shall notify the Grantor when the Grantee has completed, or caused to be completed, construction of the foundation of the Minimum Improvements and the Commercial Minimum Improvements on the Development Property in accordance with permits issued by the Grantor. The Grantor shall, within 20 days after such notification, inspect the Development Property in order to determine whether the Grantee has completed construction of the foundation of the Minimum Improvements in accordance with permits issued by the Grantor. If the Grantor determines the Grantee has completed construction of the foundation of the Minimum Improvements in accordance with permits issued by the Grantor, the Grantor will furnish to the Grantee a Certificate of Release in the form attached hereto as Exhibit B, releasing the Development Property from the right -of -reentry The Certificate of Release issued for the Development Property shall conclusively satisfy and terminate the right of reentry of the Grantor with respect to the Development Property in this Quit Claim Deed or the Development Agreement. The Grantee must record the Certificate of B-3 MN190\163\801191.v1 Release in the proper County land records. B-4 MN190\163\801191.v1 EXHIBIT B TO QUIT CLAIM DEED EXECUTED BY THE CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY, GRANTOR, IN FAVOR OF LLC, GRANTEE. CERTIFICATE OF RELEASE Recitals. Recital One. LLC, a Minnesota limited liability company (the "Grantee") is the owner of the real property legally described in Exhibit A hereto (the "Development Property"). Recital Two. Grantee acquired title to the Development Property subject to a right of reentry for breach of conditions subsequent in favor of the Grantor (the "Right of Reentry") set forth in a deed from the City of Monticello Economic Development Authority (the "Grantor") dated , 2022 and recorded in the office of the Wright County Registrar of Titles /Wright County Recorder on as Document No. (the "Deed"). Recital Three. The Grantee is a party to a Development Agreement between the Grantor and the Grantee, dated , 2022 (such agreement, as the same may be modified or amended, the "Development Agreement") (capitalized terms utilized herein and not separately defined shall have the meanings ascribed to them in the Development Agreement). Recital Four. Pursuant to the Development Agreement the Grantee is obligated to have completed, or caused to be completed, by , 20_, construction of the foundation of the Minimum Improvements in accordance with permits issued by the Grantor. Recital Five. The Grantor's Right of Reentry would be triggered by the Grantee's failure to have completed, or caused to be completed, by , 20_, construction of the foundation of the Minimum Improvements in accordance with permits issued by the City of Monticello, Minnesota. Recital Six. The Grantee has represented to the Grantor that the Grantee has completed, by , 20 , construction of the foundation of the Minimum Improvements in accordance with permits issued by the Grantor and has requested this Certificate of Release from the Grantor. Certificate of Release. The Grantor hereby certifies that the Grantee has satisfied its obligations with respect to completing, or causing to be completed, by , 20 , construction of the foundation of the Minimum Improvements in accordance with permits issued by the Grantor. The Grantor further acknowledges and agrees that the Development Property is released from the Right of Reentry. Modification of Development Agreement. Section 3.7 of the Development Agreement is hereby deleted in its entirety. B-5 MN190\163\801191.v1 IN WITNESS WHEREOF, the Grantor has caused this certificate to be duly executed on its behalf this day of , 20 CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY By: Its: President Bv: Its: Executive Director STATE OF MINNESOTA COUNTY OF WRIGHT This instrument was acknowledged before me on 20 by , as President and by , as Executive Director of the City of Monticello Economic Development Authority, a public body corporate and politic under the Constitution and laws of the State of Minnesota, on behalf of the Authority. Notary Public DRAFTED BY: Kennedy & Graven, Chartered (GAF) 150 South Fifth Street, Suite 700 Minneapolis, MN 55402 B-6 MN190\163\801191.v1 EXHIBIT A TO CERTIFICATE OF RELEASE LEGAL DESCRIPTION OF DEVELOPMENT PROPERTY The real property in the City of Monticello, County of Wright, State of Minnesota, legal described as follows: Lots 1-21, Block 1, Country Club Manor First Addition Lots 1-11, Block 2, Country Club Manor First Addition Lots 1-11, Block 3, Country Club Manor First Addition Lots 1-21, Block 4, Country Club Manor First Addition Outlot A, Country Club Manor First Addition Outlot B, Country Club Manor First Addition Outlot C, Country Club Manor First Addition B-7 MN190\163\801191.v1 SCHEDULE C PURCHASE PRICE NOTE Dated 92022 (the "Developer"), hereby acknowledges itself to be indebted and, for value received, hereby promises to pay, solely from Purchase Price Note Pledged Tax Increment as provided herein, to the City of Monticello Economic Development Authority (the "EDA") the principal sum of Seven Hundred Eighty Nine Thousand Three Hundred Two Dollars and 00/100 ($789,302). The principal amount of this Purchase Price Note (the "Note") shall equal, from time to time, the principal amount stated above, as reduced to the extent that such principal shall have been paid in whole or in part pursuant to the terms hereof. This Note is issued pursuant to that certain Purchase and Development Contract, dated as of , 2022, as the same may be amended from time to time (the "Assistance Agreement"), by and between the EDA and the Developer. This Note bears interest until paid at a rate equal to 3.00% per annum (computed on the basis of a 360 -day year, of twelve 30 -day months). The Developer acknowledges that the EDA will credit Purchase Price Note Pledged Tax Increment (as defined in the Assistance Agreement) to the payment of this Note pursuant to the Purchase Price Loan (as defined in the Assistance Agreement). If, as of the termination date of the TIF District (as defined in the Assistance Agreement), the EDA has received Purchase Price Note Pledged Tax Increments available for the payment of this Note in an amount less than $789,302 plus accrued interest thereon, the EDA will forgive the remaining principal amount of this Note plus accrued interest thereon. This Note is prepayable at any time without penalty and the EDA may use apply other EDA funds to the prepayment of this Note. IN WITNESS WHEREOF, executed and delivered as of the date first written above. By: Its: MN190\163\801191.v1 C-1 LLC, has caused this Note to be LLC SCHEDULE D FORM OF CERTIFICATE OF COMPLETION CERTIFICATE OF COMPLETION WHEREAS, the City of Monticello Economic Development Authority (the "Authority") and LLC ("Developer") entered into a certain Purchase and Development Contract dated , 2022 (the "Contract"), recorded at the office of the County Recorder of Wright County as Document No. ; and WHEREAS, the Contract contains certain covenants and restrictions set forth in Articles III and IV thereof related to constructing certain Minimum Improvements; and WHEREAS, the Developer has performed said covenants and conditions insofar as it is able in a manner deemed sufficient by the Authority to permit the execution and recording of this certification; NOW, THEREFORE, this is to certify that all construction and other physical improvements related to the Minimum Improvements specified to be done and made by the Developer have been completed and the agreements and covenants in Articles III and IV of the Contract relating to such construction have been performed by the Developer, and this Certificate is a conclusive determination of the satisfactory termination of the covenants and conditions of Articles III and IV of the Contract related to completion of the Minimum Improvements, but any other covenants in the Contract shall remain in full force and effect. MN190\163\801191.v1 D-1 Dated: STATE OF MINNESOTA COUNTY OF WRIGHT 20. CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY SS. Authority Representative The foregoing instrument was acknowledged before me this day of 20_, by , the of the City of Monticello Economic Development Authority, a public body corporate and politic under the laws of the State of Minnesota, on behalf of the authority. Notary Public This document was drafted by: KENNEDY & GRAVEN, Chartered (GAF) 150 South 5th Street, Suite 700 Minneapolis, MN 55402 Telephone: (612) 337-9300 (Signature page to Certificate of Completion) MN190\163\801191.v1 D-2 SCHEDULE E Form of Renter's Income Verification Form PROPERTY INFORMATION Postal Address of Property Unit Number TENANT INFORMATION Name of Tenant Phone # Number of family/household members: Annual Household Income* $ *Annual Household Income must be supported by documentation (i.e. copy of most current 1040's, etc). Failure to provide verification will constitute a "non -qualifying tenant". INCOME LIMIT INFORMATION 20 Income Limits Family Size Income 1 2 3 4 5 6 7 8 Does the Tenant meet these limits and has appropriate documentation been submitted? YES NO Pursuant to the Purchase and Development Contract between the City of Monticello Economic Development Authority and Headwaters Development LLC dated as of June 8, 2022, at least 24 of the 60 rental units comprising the Minimum Improvements must be reserved for tenants whose income is 60% or less of the area's median gross income. Signature of Tenant(s) Reviewed and approved on behalf of Headwaters Development LLC. Date MN190\163\801191.vl E-1 Date Date SCHEDULE F AUTHORIZING RESOLUTION CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. RESOLUTION AWARDING THE SALE OF, AND PROVIDING THE FORM, TERMS, COVENANTS AND DIRECTIONS FOR THE ISSUANCE OF A TAX INCREMENT REVENUE NOTE TO LLC AND APPROVING A PURCHASE AND DEVELOPMENT AGREEMENT WITH LLC INCLUDING THE CONVEYANCE OF LAND BE IT RESOLVED BY the Board of Commissioners ("Board") of the City of Monticello Economic Development Authority, Monticello, Minnesota (the "Authority") as follows: Section 1. Recitals. 1.01. Authorization. The Authority and the City of Monticello have approved the establishment of its Tax Increment Financing (Housing) District No. 1-43 (Headwaters Villas Project) (the "TIF District"), within the Central Monticello Redevelopment Project No. 1 ("Redevelopment Project") and have adopted a tax increment financing plan therefore for the purpose of financing certain public improvements within the Redevelopment Project. 1.02. To facilitate development of certain property in the TIF District, the Authority proposes to enter into a Purchase and Development Contract (the "Agreement") with LLC, a Minnesota limited liability company, or an affiliate thereof or entity related thereto (the "Developer"), under which among other things the Authority will convey to the Developer, certain property described as Lot 1, Block 5, Country Club Manor First Addition, Wright County, Minnesota (the "Development Property") at a cost below market value. 1.03. The Authority proposes to sell the Development Property to the Developer at the price of $789,303 which will be paid from cash in the amount of $1.00 and a Purchase Price Note (the "Purchase Price Note") from the Developer in the amount of $789,302 which will be repaid from tax increment. In addition, the Authority proposes to reimburse the Developer for certain public development costs in the amount not to exceed $1,590,087 through the issuance of a pay as you go tax increment financing note (the "TIF Note") subject to the terms and conditions set forth in the Agreement. 1.04. On the date hereof, the Authority conducted a duly noticed public hearing regarding the conveyance of the Development Property to the Developer pursuant to the Agreement, at which F-1 MN190\163\801191.v1 all interested parties were given an opportunity to be heard, and hereby finds that the execution of the Agreement and performance of the Authority's obligations thereunder, including the conveyance of the Development Property to the Developer, are in the best interest of the City and its residents. Section 2. Agreement and Land Sale Approved. 2.01 The Board approves the Agreement as presented to the Board, including the provisions for the conveyance of the Development Property therein, subject to modifications that do not alter the substance of the transaction and that are approved by the President and Executive Director, provided that execution of the documents by those officials shall be conclusive evidence of their approval. 2.02. Authority staff and officials are authorized to take all actions necessary to perform the Authority's obligations under the Agreement as a whole, including without limitation execution of any deed or other documents necessary to convey the Development Property to Developer. Section 3. TIF Note Authorized and Approved. 3.01. The Authority hereby approves issuance of the TIF Note pursuant to the Agreement. The TIF Note shall be issued in the maximum aggregate principal amount of $1,590,087 to the Developer in consideration of certain eligible costs incurred by the Developer under the Agreement, shall be dated the date of delivery thereof, and shall bear interest at a rate to be set at the lesser of the Developer's actual mortgage financing rate or 4.50%. The TIF Note will be issued in a single series designated Taxable Tax Increment Revenue Note (Headwaters Villas Project) issued in the principal amount of $1,590,087 to reimburse the Developer for certain costs in accordance with Section 3.9 of the Agreement. The TIF Note is secured by TIF Note Available Tax Increment, as further described in the form of the TIF Note attached hereto as Exhibit A. The Authority hereby delegates to the Executive Director the determination of the date on which the TIF Note is to be delivered, in accordance with the Agreement. Section 4. Form of TIF Note; Terms and Delivery of Note. 4.01 The TIF Note shall be in substantially the form attached hereto as Exhibit A, with the blanks to be properly filled in and the principal and interest rate amounts adjusted as of the date of issue. 4.02. Denomination, Pam. The TIF Note shall be issued as a single typewritten note numbered R-1. The TIF Note shall be issuable only in fully registered form. Principal of and interest on the TIF Note shall be payable by check or draft issued by the Registrar described herein. 4.03. Dates; Interest Payment Dates. Principal of and interest on the TIF Note shall be payable by mail to the owner of record thereof as of the close of business on the fifteenth day of the month preceding the Payment Date, whether or not such day is a business day. F-2 MN190\163\801191.v1 4.04. Registration. The Authority hereby appoints the City Finance Director to perform the functions of registrar, transfer agent and paying agent (the "Registrar"). The effect of registration and the rights and duties of the Authority and the Registrar with respect thereto shall be as follows: (a) Register. The Registrar shall keep at its office a bond register in which the Registrar shall provide for the registration of ownership of the TIF Note and the registration of transfers and exchanges of the TIF Note. (b) Transfer of TIF Note. Upon surrender for transfer of the TIF Note duly endorsed by the registered owner thereof or accompanied by a written instrument of transfer, in form reasonably satisfactory to the Registrar, duly executed by the registered owner thereof or by an attorney duly authorized by the registered owner in writing, and consent to such transfer by the Authority if required pursuant to the Agreement, the Registrar shall authenticate and deliver, in the name of the designated transferee or transferees, a new TIF Note of a like aggregate principal amount and maturity, as requested by the transferor. The Registrar may close the books for registration of any transfer after the fifteenth day of the month preceding each Payment Date and until such Payment Date. (c) Cancellation. The TIF Note surrendered upon any transfer shall be promptly cancelled by the Registrar and thereafter disposed of as directed by the Authority. (d) Improper or Unauthorized Transfer. When the TIF Note is presented to the Registrar for transfer, the Registrar may refuse to transfer the same until it is reasonably satisfied that the endorsement on such TIF Note or separate instrument of transfer is legally authorized. The Registrar shall incur no liability for its refusal, in good faith, to make transfers which it, in its judgment, deems improper or unauthorized. (e) Persons Deemed Owners. The Authority and the Registrar may treat the person in whose name the TIF Note is at any time registered in the bond register as the absolute owner of the TIF Note, whether the TIF Note shall be overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on such TIF Note and for all other purposes, and all such payments so made to any such registered owner or upon the owner's order shall be valid and effectual to satisfy and discharge the liability of the Authority upon such TIF Note to the extent of the sum or sums so paid. (f) Taxes, Fees and Charges. For every transfer or exchange of the TIF Note, the Registrar may impose a charge upon the owner thereof sufficient to reimburse the Registrar for any tax, fee, or other governmental charge required to be paid with respect to such transfer or exchange. (g) Mutilated, Lost, Stolen or Destroyed TIF Note. In case any TIF Note shall become mutilated or be lost, stolen, or destroyed, the Registrar shall deliver a new TIF Note of like amount, Termination Dates and tenor in exchange and substitution for and upon cancellation of such mutilated TIF Note or in lieu of and in substitution for such TIF Note lost, stolen, or destroyed, upon the payment of the reasonable expenses and charges of the Registrar in connection therewith; F-3 MN190\163\801191.v1 and, in the case the TIF Note lost, stolen, or destroyed, upon filing with the Registrar of evidence satisfactory to it that such TIF Note was lost, stolen, or destroyed, and of the ownership thereof, and upon furnishing to the Registrar of an appropriate bond or indemnity in form, substance, and amount satisfactory to it, in which both the Authority and the Registrar shall be named as obligees. The TIF Note so surrendered to the Registrar shall be cancelled by it and evidence of such cancellation shall be given to the Authority. If the mutilated, lost, stolen, or destroyed TIF Note has already matured or been called for redemption in accordance with its terms, it shall not be necessary to issue a new TIF Note prior to payment. 4.05. Preparation and Delivery. The TIF Note shall be prepared under the direction of the Executive Director and shall be executed on behalf of the Authority by the signatures of its President and Executive Director. In case any officer whose signature shall appear on the TIF Note shall cease to be such officer before the delivery of the TIF Note, such signature shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until delivery. When the TIF Note has been so executed, it shall be delivered by the Executive Director to the owner thereof in accordance with the Agreement. Section 5. Security Provisions. 5.01. Pledge. The Authority hereby pledges to the payment of the principal of and interest on the TIF Note all TIF Note Available Tax Increment as defined in the TIF Note. TIF Note Available Tax Increment shall be applied to payment of the principal of and interest on the TIF Note in accordance with the terms of the form of TIF Note set forth in Section 2 of this resolution. Section 6. Certification of Proceedings. 6.01. Certification of Proceedings. The officers of the Authority are hereby authorized and directed to prepare and furnish to the owner of the TIF Note certified copies of all proceedings and records of the Authority, and such other affidavits, certificates, and information as may be required to show the facts relating to the legality and marketability of the TIF Note as the same appear from the books and records under their custody and control or as otherwise known to them, and all such certified copies, certificates, and affidavits, including any heretofore furnished, shall be deemed representations of the Authority as to the facts recited therein. Section 7. Effective Date. This resolution shall be effective upon approval. Approved by the Board of Commissioners of the City of Monticello Economic Development Authority on June 8, 2022. President ATTEST: Executive Director F-4 MN190\163\801191.v1 EXHIBIT A UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF WRIGHT CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY No. R-1 $ TAXABLE TAX INCREMENT REVENUE NOTE SERIES 20_ (HEADWATERS VILLAS PROJECT) Date Rate of Original Issue [lesser of 4.50% or Developer's actual financing rate] , 20 The City of Monticello Economic Development Authority (the "Authority") for value received, certifies that it is indebted and hereby promises to pay to LLC, a Minnesota limited liability company, or registered assigns (the "Owner"), the principal sum of $ and to pay interest thereon at the rate of percent (%) per annum, solely from the sources and to the extent set forth herein. Capitalized terms shall have the meanings provided in the Purchase and Development Contract between the Authority and the Owner, dated as of June 8, 2022 (the "Agreement"), unless the context requires otherwise. 1. Payments. Principal and interest (the "Payments") shall be paid on August 1, 2025 and each February I and August I thereafter ("Payment Dates") to and including February 1, 2041 (the "Maturity Date") in the amounts and from the sources set forth in Section 3 herein. Payments shall be applied first to accrued interest, and then to unpaid principal. TIF Note Available Tax Increment will not include any Tax Increment (as defined the Agreement) if, as of any Payment Date, there is an uncured Event of Default under the Agreement. Payments are payable by mail to the address of the Owner or such other address as the Owner may designate upon sixty (60) days written notice to the Authority. Payments on this TIF Note are payable in any coin or currency of the United States of America which, on the Payment Date, is legal tender for the payment of public and private debts. 2. Interest. Interest at the rate stated herein shall accrue on the unpaid principal, commencing on the date of original issue. The Note shall bear simple non -compounding interest. 3. TIF Note Available Tax Increment. (a) Payments on this TIF Note are payable on each Payment Date solely from and in the amount of TIF Note Available Tax Increment, which shall mean, on each Payment Date, seventy-nine and four -tenths percent (79.4%) of the Tax F-5 MN190\163\801191.v1 Increment attributable to the Minimum Improvements and Development Property that is actually paid to the Authority by Wright County in the six (6) months preceding the Payment Date. (b) The Authority shall have no obligation to pay principal of and interest on this TIF Note on each Payment Date from any source other than TIF Note Available Tax Increment and the failure of the Authority to pay the entire amount of principal or interest on this TIF Note on any Payment Date shall not constitute a default hereunder as long as the Authority pays principal and interest hereon to the extent of TIF Note Available Tax Increment. The Authority shall have no obligation to pay any unpaid balance of principal or accrued interest that may remain after the final Payment on the Maturity Date. 4. Default. The Authority's payment obligations shall be subject to Sections 9.1 and 9.2 of the Agreement and are further subject to the conditions that (i) no Event of Default under Section 9.1 of the Agreement shall have occurred and be continuing at the time payment is otherwise due hereunder; and (ii) the Agreement and this TIF Note shall not have been terminated in accordance with Section 9.2 of the Agreement. Any such suspended and unpaid amounts shall become payable, without interest accruing thereon in the meantime, if this TIF Note has not been terminated in accordance with Section 9.2 of the Agreement and said Event of Default shall thereafter have been cured in accordance with Section 9.2. If pursuant to the occurrence of an Event of Default under the Agreement the Authority elects, in accordance with the Agreement, to cancel and rescind the Agreement and/or this TIF Note, the Authority shall have no further obligation under this TIF Note whatsoever. Reference is hereby made to all of the provisions of the Agreement, for a fuller statement of the rights and obligations of the Authority to pay the principal of this TIF Note and the interest thereon, and said provisions are hereby incorporated into this TIF Note as though set out in full herein. 5. Prepayment. The principal sum and all accrued interest payable under this TIF 6. Nature of Obligation. This TIF Note is one of an issue in the total principal amount of $ , issued to aid in financing certain public development costs and administrative costs of a Redevelopment Project undertaken by the Authority pursuant to Minnesota Statutes, Sections 469.090 through 469.1081, as amended, and Section 469.001 through 469.047, as amended, and is issued pursuant to an authorizing resolution (the "Resolution") duly adopted by the Authority on , 2022, and pursuant to and in full conformity with the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Sections 469.174 to 469.1794, as amended. This TIF Note is a limited obligation of the Authority which is payable solely from TIF Note Available Tax Increment pledged to the payment hereof under the Resolution. This TIF Note and the interest hereon shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including, without limitation, the Authority or the City of Monticello, Minnesota (the "City"). Neither the State of Minnesota, the City, the Authority nor any political subdivision thereof shall be obligated to pay the principal of or interest on this TIF Note or other costs incident hereto except out of TIF Note Available Tax Increment, and neither the full faith and credit nor the taxing power of the State of Minnesota , the City, the Authority, or any political subdivision thereof is pledged to the payment of the principal of or interest on this TIF Note or other costs incident hereto. F-6 MN190\163\801191.v1 THE AUTHORITY MAKES NO REPRESENTATION OR WARRANTY THAT THE TIF NOTE AVAILABLE TAX INCREMENT WILL BE SUFFICIENT TO PAY THE PRINCIPAL OF AND INTEREST ON THIS NOTE. 7. Registration and Transfer. This TIF Note is issuable only as a fully registered TIF Note without coupons. As provided in the Resolution, and subject to certain limitations set forth therein, this TIF Note is transferable upon the books of the Authority kept for that purpose at the principal office of the Executive Director, by the Owner hereof in person or by such Owner's attorney duly authorized in writing, upon surrender of this TIF Note together with a written instrument of transfer satisfactory to the Authority, duly executed by the Owner. Upon such transfer or exchange and the payment by the Owner of any tax, fee, or governmental charge required to be paid by the Authority with respect to such transfer or exchange, there will be issued in the name of the transferee a new TIF Note of the same aggregate principal amount, bearing interest at the same rate and maturing on the same dates, within 15 days after the delivery by the Owner of its request and approval of such request by the Authority if required under the Agreement. Except as otherwise provided in the Agreement, this TIF Note shall not be transferred to any person or entity, unless the Authority has provided written consent to such transfer and the Authority is provided with an investment letter in a form satisfactory to the Authority. The Registrar may close the books for registration of any transfer after the fifteenth (15th) day of the month preceding each Payment Date and until such Payment Date. IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions, and things required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen, and to be performed in order to make this TIF Note a valid and binding limited obligation of the Authority according to its terms, have been done, do exist, have happened, and have been performed in due form, time and manner as so required. IN WITNESS WHEREOF, the Board of Commissioners of the City of Monticello Economic Development Authority have caused this TIF Note to be executed with the manual signatures of its President and Executive Director, all as of the Date of Original Issue specified above. Executive Director F-7 MN190\163\801191.v1 CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY President REGISTRATION PROVISIONS The ownership of the unpaid balance of the within TIF Note is registered in the bond register of the City Finance Director, in the name of the person last listed below. Date of Registration Registered Owner , 20 Federal Tax I.D No MN190\163\801191.v1 Signature of Executive Director SCHEDULE G Apartments Property The real property in the City of Monticello, County of Wright, State of Minnesota, legal described as follows: Lot 1, Block 5, Country Club Manor First Addition G-1 MN190\163\801191.v1 NORTHLAND PUBLIC FINANCE MEMORANDUM To: City of Monticello From: Tammy Omdal Date: June 3, 2022 Re: Evaluation of Public Financial Assistance for TIF 1-43 (Headwaters Villas Project) The City of Monticello (the "City") and the City of Monticello Economic Development Authority (the "EDA") received an application from Headwaters Development LLC (the "Redeveloper") for public financial assistance to assist with the construction by the Developer of approximately 60 rental housing units for seniors, with attached two -car garages to the units (the "Project"). The Project is to be located on a parcel at the corner of Golf Course Road and 7th Street West within the City (the "Property"). Subject to approval of the request for public financial assistance, the Redeveloper plans to commence construction of the Project by May 1, 2022, and substantially complete construction by December 31, 2023. The estimated cost for the Project is approximately $19.8 million (see Exhibit B). The Redeveloper's request for public financial assistance is to assist with the extraordinary costs of redevelopment and construction of the affordable housing for the Project. The Redeveloper has represented that it will not undertake the Project as proposed without the approval of the requested public financial assistance. It is Northland's opinion that the Project is unlikely to occur but for the proposed public financial assistance, inclusive of the tax increment financing (TIF). Without public financial assistance, the Project is not expected to achieve the level of debt service coverage and returns needed to secure the necessary private financing and equity. Northland finds that it is reasonable for the EDA to consider public financial assistance for the Project, an affordable housing project, as necessary so that development by private enterprise will occur on the Property. The Project will not occur solely through private investment within the reasonably foreseeable future. Public Financial Assistance Due to the extraordinary costs associated with acquisition and development of the Project, the Redeveloper is seeking public financial assistance from the EDA in the form pay -go tax increment financing assistance and conveyance of the Property to the Redeveloper from the EDA. The tax increment revenue is proposed to come from the established Tax Increment Financing (Housing) District No. 1-43 (the "TIF District") within the existing Central Monticello Redevelopment Project No. 1. The City Council held a public hearing and approved the establishment of the TIF District on February 14, 2022, and the EDA approved on February 23, 2022. 150 South Fifth Street, Suite 3300, Minneapolis, MN 55402 Main: (612) 851-5900 / Direct: (612) 851-4964 / Email: tomdal@northlandsecurities.com Member FIlVRA and SIPC I Registered with SEC and MSRB Monticello TIF 1-43 June 3, 2022 Page 2 The application from the Redeveloper included a request for $1,700,000 in TIF assistance for the Project. Based on Northland's analysis of the financial information provided by the Redeveloper, the following terms for assistance to the Redeveloper are proposed: • Maximum term of 15 years for TIF assistance to the Redeveloper TIF "pay -go" revenue note (the "TIF Note") to be issued to reimburse of $1,590,087 of qualified costs for the Project plus interest at rate to be set at the lesser of Redeveloper's actual mortgage financing rate, estimated for planning purposes to be or 4.50%, from the date of issue per annum to the earlier of maturity or prepayment. Total estimated payments to the Redeveloper over 15 years is estimated to be approximately $2.46 million, including principal and interest payments. The TIF Note will be payable solely from net available semi-annual tax increments. Net available semi-annual tax increments shall be based on 79.4% of the tax increment collected from the Project within the TIF District. The TIF Note shall bear simple, non -compounding interest from the date that the EDA has determined paid invoices, as paid by the Redeveloper, in compliance with the terms of the Agreement. • Developer will pay at closing the outstanding deferred special assessments on the Property in the estimated amount of $188,295. This amount is a pro -rated share of the total outstanding deferred special assessments of $231,402 on the land that will sub -divided for establishment of the TIF District (1-43) and a Tax Increment Financing District No. 1-42 (Apartment). • EDA will convey land to the Project. The estimated value of the land to be contributed to the Redeveloper for the Project is $789,303. • EDA will retain 20.6% of the increment collected to repay itself for qualified costs of the Project, including administrative costs and land contribution. • Combined present value of the public financial assistance to the Redeveloper for the Project is approximately $2.38 million, including TIF ($1.59 million) and land contribution ($0.79 million). • Proposed terms will be subject to a Contract for Private Redevelopment (the "Agreement") between the Redeveloper and the EDA. • Use of tax increments is proposed to include reimbursement to the EDA for the contribution of the Property and reimbursement to the Redeveloper for site improvements and the costs of constructing the affordable housing units. • Tax increment cash flow estimate assumes up to 15 years of tax increment assistance to the Redeveloper, which is less than the 26 -year maximum term allowed by state law. Based on a proposed election for year 2025 to be the first year of tax increment collection for the TIF District, the estimated termination date of the Agreement is February 1, 2041. Exhibit A provides a summary of the estimated tax increment cash flow from the TIF District available to reimburse the Redeveloper for eligible costs for construction of the Project. Monticello TIF 1-43 June 3, 2022 Page 3 Review of Application for Assistance Northland conducted a review of the Redeveloper's application for financial assistance dated November 29, 2021, along with other information provided by the Redeveloper as requested by Northland. Northland reviewed project cost estimates to ensure all anticipated sources and uses for the Project were properly included. Exhibit B provides information on the sources and uses of funds for the Project. Based on a review of the pro forma for the Project and under current market conditions, we find that the Project, as proposed, may not reasonably be expected to occur solely through private investment within the reasonably near future. Due to the costs associated with construction of the affordable housing units, the Project as proposed is feasible only through assistance, in part, from TIF. This conclusion is supported by the following: The Redeveloper plans for the $20.5 million of project cost for the Project to be funded from a combination of debt (77.2%), equity (14.6%) and contributions of land (8.1%). The present value of the future payments on the TIF Note reduces the effective cost of the Project by approximately $1.40 million. Based on estimated net operating income, the effective return without the public financial assistance is not at a level the Project would proceed. The total estimated cost per unit for the Project is approximately $329,949 for the construction of 60 villas with two -bedrooms and two -car garages. Based on Northland's experience with similar projects and given the location of the Project, we find the estimated cost per unit to be reasonable. ■ The estimated average gross monthly rent for units, in the first stabilized year of the Project, is estimated at approximately $2,642 per month. A minimum of 40% of the units will be affordable at 60% of the average median income (AMI for Wright County as of fiscal year 2021 is $104,900). The annual total gross rental income for the Project is estimated at $1,440,000 in the first year of stabilized occupancy, before adjusting for estimated apartment vacancy and rental loss of 5%. ■ The total annual expense, operating and non-operating, is estimated at $8,766 per unit. This includes management fee and replacement reserve. This average cost per unit appears to be high compared to Northland's experience with other similar projects. Northland estimates that the Redeveloper may be able to reduce the estimated expenses and increase the projected returns for the Project. The estimated average debt service coverage with tax increment financing is estimated to average 1.28X during the first ten years of operations, and without tax increment assistance the average is 1.12X. The coverage for the mortgage without the tax increment is not at a level that we would expect the Project, as proposed, to proceed. The financing of this type of project would be expected to be at a minimum of approximately 1.2X coverage, which is consistent with the minimum coverage the Redeveloper indicates as needed. ■ The cash -on -cash return is projected to reach an estimated 14.0% by year ten of operations with financial assistance, and 8.7% without assistance. Monticello TIF 1-43 June 3, 2022 Page 4 EXHIBIT A City of Monticello Monticello Tax Increment Financing District No. 1-43 (Housing) Headwaters Villas Project Projected Tax Increment Cash Flow Key Assumptions for Cash Flow: 1 Taxable market value (TMV) annual growth assumption = 1.00% 2 Original Tax Rate estimated based on Taxes Payable Year 2021. 3 Election for captured tax capacity is 100.0% 4 Original Net Tax Capacity is calculated based on a TMV = $314,205, NTC calculated for Apartment classification. 5 Present value is calculated based on semi-annual payments, 3.0% rate, and date of 12/1/2022. 6 Available TIF is after deducting State Auditor Fee of 0.36%. 20.6% 3.0% 79.4% 4.50% Less Taxable TIF Taxes Original Captured Original TIF PV of Net Market Net Tax Available PV of TIF TIF to District Payable Net Tax Net Tax Tax Rate RetainedAvailable Value Capacity TIF to City s Developer Year Year ' Capacity Capacity 3 2 by City TIF 1,7 (TMV) 4 1 2025 12,498,750 156,234 3,928 152,307 95.949% 145,611 29,992 27,498 115,619 101,552 2 2026 16,831,650 210,396 3,928 206,468 95.949% 197,391 40,657 63,680 156,734 233,224 3 2027 16,999,967 212,500 3,928 208,572 95.949% 199,403 41,072 99,159 158,331 360,448 4 2028 17,169,966 214,625 3,928 210,697 95.949% 201,434 41,490 133,948 159,944 483,375 5 2029 17,341,666 216,771 3,928 212,843 95.949% 203,486 41,913 168,060 161,573 602,148 6 2030 17,515,082 218,939 3,928 215,011 95.949% 205,558 42,339 201,509 163,219 716,909 7 2031 17,690,233 221,128 3,928 217,200 95.949% 207,652 42,771 234,307 164,881 827,793 8 2032 17,867,136 223,339 3,928 219,412 95.949% 209,765 43,206 266,467 166,559 934,930 9 2033 18,045,807 225,573 3,928 221,645 95.949% 211,900 43,646 298,001 168,255 1,038,447 10 2034 18,226,265 227,828 3,928 223,901 95.949% 214,058 44,090 328,921 169,968 1,138,467 11 2035 18,408,528 230,107 3,928 226,179 95.949% 216,236 44,539 359,240 171,697 1,235,106 12 2036 18,592,613 232,408 3,928 228,480 95.949% 218,435 44,992 388,968 173,443 1,328,479 13 2037 18,778,539 234,732 3,928 230,804 95.949% 220,657 45,449 418,118 175,207 1,418,696 14 2038 18,966,325 237,079 3,928 233,151 95.949% 222,902 45,912 446,700 176,990 1,505,865 15 2039 19,155,988 239,450 3,928 235,522 95.949% 225,167 46,378 474,726 178,789 1,590,087 3,099,654 638,445 474,726 2,461,209 1,590,087 TOTAL = Key Assumptions for Cash Flow: 1 Taxable market value (TMV) annual growth assumption = 1.00% 2 Original Tax Rate estimated based on Taxes Payable Year 2021. 3 Election for captured tax capacity is 100.0% 4 Original Net Tax Capacity is calculated based on a TMV = $314,205, NTC calculated for Apartment classification. 5 Present value is calculated based on semi-annual payments, 3.0% rate, and date of 12/1/2022. 6 Available TIF is after deducting State Auditor Fee of 0.36%. Monticello TIF 143 June 3, 2022 Page 5 EXHIBIT B City of Monticello Headwaters Villa Housing Project Developer Sources and Uses for Project Uses Total % of Total Per Unit Sources $789,303 4.0% $13,155 First Mortgage / TIF Mortgage $15,833,830 80.0% $263,897 Contribution of Land from EDA/City $789,303 4.0% $13,155 Equity $3,173,795 16.0% $52,897 Total Sources of Funds $19,796,928 100.0% $329,949 Uses Land Acquisition (Contribution from City) $789,303 4.0% $13,155 Land Acquisition (Deferred Special Assessment) $188,295 1.0% $3,138 Construction (includes contingency) $16,529,350 83.5% $275,489 FFE $30,000 0.2% $500 Project management and design fee $200,000 1.0% $3,333 City Fees $15,000 0.1% $250 Financing and Other Soft Costs $2,044,980 10.3% $34,083 Total Uses of Funds $19,796,928 100.0% $329,949 Number of Units 60 Note: The Developer may seeek to monetize (or mortgage) the TIF Revenue Note. 32 RENTAL STRESS BY INCOME RENTAL STRESS in Monticello exists almost entirely within low-income City households. While there are renter households over 80% AMI that experience cost burden, higher -income cost burdened households often have the option to spend more than 30% of income toward housing while still maintaining the ability to cover fixed costs - cost burden by choice. Due to the structure of the rental market in the City, there are gaps in unit availability at appropriate price points to serve specific incomes in the market. Overall, there is a general oversupply of low-cost units that serve households between 31 % and 80% AMI (approx. $800 - $1,300 monthly rent). These units represent natural appreciation of units within the market - they do not have subsidies that allow them to alleviate cost burden for the lowest - income households, while also not filling demand for the highest -income users in the market. There are significant housing gaps at both the top and bottom of the rental housing market, with an undersupply of market -rate units for households earning over 80% AMI (rental housing cost $1,500+) as well as affordable units with 250 200 150 100 50 Less than $20,000 $20,000 - $34,999 rents below $800 monthly. Although there is a high market gap, there is an upwards limit to income that can realistically be spent on housing. Many higher income households also value affordability (spending less than 30%), so this does not display true unit for unit demand for high cost housing. It does create some additional market tension, where some high income households rent significantly below what they could afford, using units otherwise affordable to lower-income households. RENTAL UNIT MISMATCH *most recent available data - does not include Monticello Crossings Source: American Community Survey 5 -Year Estimates M m $35,000 - $49,999 $50,000 - $74,999 0% - 30% AMI 480 215 31% - 50% AMI 200 650 51% - 80% AMI 405 460 > 81% AMI 285 45* -240 *most recent available data - does not include Monticello Crossings Source: American Community Survey 5 -Year Estimates M m $35,000 - $49,999 $50,000 - $74,999 ■ Cost Burdened Severely Cost Burdened > $75,000 33 RENTAL HOUSING STRESS COST BURDENED RENTER HOUSEHOLDS Source: American Community Survey 5—Year Estimates LEVELS OF COST BURDEN (2018) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Monticello Buffalo Becker ■ Cost Burden (30%-50% Income Toward Rent) RATES OF RENTER COST BURDEN may be low in Monticello overall, but those renters who are cost burdened are much more likely to be severely cost burdened (spending more than 50% income toward rental costs). Of those experiencing cost burden in the City, 73% are severely cost burdened. This rate is significantly higher than in regional peer communities, 21.7 points higher than the next closest community. While rates of cost burden are low overall, higher income households "renting down", as well as increased demand in the market overall increases competition for units in the moderate- and middle- market segments. This also indicates a lack of appropriately - priced units for the lowest income households already living in the community, and indicates opportunity to better serve low-income households through income -restricted and subsidized units that ensure affordability levels not currently provided within the market. Big Lake St. Michael Wright County Severe Cost Burden (>50% Income Toward Rent) Source: HUD Comprehensive Housing Affordability Strategy Renta( Market Monticello 174 4;, 72.5% Buffalo 519 420 44.7% Becker 72 38 34.5% Big Lake 289 29 9.1% St. Michael 165 159 48.6% Wright County 1,889 1,951, 50.8% Source: American Community Survey 5—Year Estimates LEVELS OF COST BURDEN (2018) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Monticello Buffalo Becker ■ Cost Burden (30%-50% Income Toward Rent) RATES OF RENTER COST BURDEN may be low in Monticello overall, but those renters who are cost burdened are much more likely to be severely cost burdened (spending more than 50% income toward rental costs). Of those experiencing cost burden in the City, 73% are severely cost burdened. This rate is significantly higher than in regional peer communities, 21.7 points higher than the next closest community. While rates of cost burden are low overall, higher income households "renting down", as well as increased demand in the market overall increases competition for units in the moderate- and middle- market segments. This also indicates a lack of appropriately - priced units for the lowest income households already living in the community, and indicates opportunity to better serve low-income households through income -restricted and subsidized units that ensure affordability levels not currently provided within the market. Big Lake St. Michael Wright County Severe Cost Burden (>50% Income Toward Rent) Source: HUD Comprehensive Housing Affordability Strategy Renta( Market 35 RENTAL UNIT CONSUMPTION WHILE UNIT CHOICE is important to the freedom and desirability of the local housing market, more options at appropriate price points can help guide consumers into more appropriately priced units that ease burden at all levels. Comments received in the Community Survey largely called out this need for housing across multiple price points - even when not directly asked. While a few respondents were hesitant toward new development, themes largely arose that clearly identified both affordable and executive level housing options as needs within the community. This included a significant response for increased housing support directed toward households at risk of homelessness - which per HUD guidance is considered severely cost burdened, extremely low-income renter households (approx. 225 of these households currently live in the City). RENTAL UNIT HOUSEHOLD OCCUPANCY The survey also identified specific building types they would like to see within the market - and in addition to amenity -rich market rate options for renters who may choose to telecommute, attached unit and townhome development were commonly listed as options to help fill the mid-level market, whether ownership or rental. In looking to directly address rental costs for low- income households, one method commonly used is to aim to add the undersupply. In Monticello, this would be a goal to add 265 units of rental housing affordable to the lowest -income earners in the community (0% - 30% AMI households). This would allow options for these households to eliminate or severely reduce their housing costs, decrease rates of rental cost burden, and open up units they were occupying to other households in the community or moving to the community at price - points appropriate to their own income. I I I I V12 .9 ffWC4;1 ; IvIlm11w," IF)EFR4 RNUMM Affordable at 30% 175 40 0 0 0 Affordable 31% - 50% 195 85 210 105 60 Affordable 51% - 80% 95 60 180 50 70 Affordable at >80% 15 15 15 0 0 100 RENTAL DEMAND - LOW ESTIMATE Within the rental market, projections are based on projected household growth, current rates of household tenure for demographics likely to be seeking rental housing, and then focused based on rates of affordability to current residents who rent within the housing market. This demand analysis indicates a slow shift from ownership to renter markets, consistent with changes in rates of tenure over the past decade. Gradual and thoughtful demand -driven outcomes will likely see more a higher percentage of rental units created in an average year than the current overall percentage of renters in the community. The low estimate for rental housing in the next 5 years assumes fewer new units than have been created in the past 5 -year period, and should be treated as a baseline for unit development, not a target that should preclude development when the baseline has been met. New - Housing Demand Demand from Household Growth Within the City - Household Growth in Rental Demographics 329 additional households Demographic Renter Rate 37% Demand from New Construction 122 rental units Demand from Existing Resident Households Current Renters in Market 62 households Percent of Renters Seeking New Housing 28% Increased Demand from Existing Renters 325 rental units Renters with Preference for New Construction 20% Existing Renter Demand for New Construction 65 rental units Total Demand for New Construction Rental Units = 187 units Affordable Units 50% Mid -Level Units 40% High Market Units 10% New Affordable Demand 93 units New Mid -Level Demand 75 units New High Market Demand 19 units Additional Need for Vacancy 52 units Additional Need for Vacancy 32 units Additional Need for Vacancy 19 units Total Affordable Need 145 units Total Mid -Level Need 107 units Total High Market Need 38 units Total Unit Need = 290 units City of Monticello Housing Needs and Demand RENTAL DEMAND - HIGH ESTIMATE 101 High estimates for rental demand assume continued, strong demand within the market - and matches approximately the same number of units that have been created over the past 5 -year period. This suggests continued demand for development types that have been coming forward in the City, and planning for the trend to continue will allow the City to identify sites and areas through downtown and key corridors. The City can balance market demand for more rental housing with small town character through smart siting and design regulations. This estimate of demand may come to be met if growth pressures increase further than current projections indicate, and developments should be considered based on their own merits and demonstrated need on an annual basis. New - Housing Demand Demand from Household Growth Within the City - Household Growth in Rental Demographics 510 additional households Demographic Renter Rate 37% Demand from New Construction 189 rental units Demand from Existing Resident Households Current Renters in Market 62 households Percent of Renters Seeking New Housing 28% Increased Demand from Existing Renters 325 rental units Renters with Preference for New Construction 20% Existing Renter Demand for New Construction 65 rental units Total Demand for New Construction Rental Units = 254 units Affordable Units 50% Mid -Level Units 40% High Market Units 10% New Affordable Demand 127 units New Mid -Level Demand 102 units New High Market Demand 25 units Additional Need for Vacancy 54 units Additional Need for Vacancy 34 units Additional Need for Vacancy 20 units Total Affordable Need 181 units Total Mid -Level Need 136 units Total High Market Need 45 units Total Unit Need = 362 units Unit Demand & Recommendations City of Monticello Central Monticello Redevelopment Project No. 1 Establishment of Tax Increment Financing District No. 1-42 and Tax Increment Financing District No. 1-43 Housing TIF Districts Headwaters Apartment Project and Headwaters Villas Project Public Hearings on February 14 5 M T W T F 5 1 1 2 3 4 5 6 7 8 9 10 11 December 8 EDA request City Council call for hearing 12 13 14 15 16 17 18 19 20 21 22 23 24 25 December 13 City Council calls for public hearing 26 27 28 29 30 31 5 M T W T F 5 1 2 3 4 5 6 7 8 January 4 Last day for written notice to County Commissioner 9 10 11 12 13 14 15 January 14 Last day for notice and TIF pland and fiscal implications to County and School Distric 16 17 18 19 20 21 22 23 24 25 26 27 28 29 January 31 Last day to submit public hearing notice to newspaper, by 4pm 30 31 5 M T W T F 5 February 1 Planning Commission review 1 2 3 4 5 February 3 Public hearing notice published in the newspaper 6 7 8 9 10 11 12 13 14 15 16 17 18 19 February 14 Public hearing and establishment of TIF Districts 20 21 22 23 24 25 26 February 23 EDA approval of TIF Districts, subject to Council approval 27 28 5 M T W T F 5 1 2 3 4 5 6 7 8 9 10 11 12 On or after March 9 EDA approves TIF develoment agreements 13 14 15 16 17 18 19 March 15 Request certification by County 20 21 22 23 24 25 26 March 15 Submit plan to State 27 28 29 30 31 By June 30 Request certification by county auditor and submit plan to state Notes: 1 1 City Council regular meeting dates. 2 Economic Development Authority (EDA) regular meeting dates. 3 Planning Commission regular meeting dates. 4 City needs to confirm publication dates and is responsible for submitting notice to newspaper. NORTHLAND TIF for Housing �,to- PUBLIC FINANCE 2/9/2022 EDA: 06/08/22 9. Consideration to approve a letter of support for Duffy Development's Updated Application for the MHFA Low Income Housing Tax Credit Application for a 59 -unit Affordable Housing Development and desired TIF Assistance (JT) A. REFERENCE AND BACKGROUND: Duffy Development, Minnetonka, MN, informed City staff that it did not get awarded tax credit funding for its proposed development of a 53 -unit apartment building and three (3) duplex structures (4 -bedrooms) in the last round of application. Duffy Development came before the EDA in 2020 and again 2021 to seek EDA and City Council support for its Section 42 (Federal) Low Income Housing Tax Credit (LIHTC) funding application for the proposal. The LIHTC program would have been the major source of funding for the $16,750,000 proposal. The EDA and City Council were asked to consider further supporting the proposal through tax increment financing (TIF) assistance and other site design considerations serving to provide an assistance value. Ultimately, both the EDA and the City Council authorized support of Duffy Development's proposal as a preliminary approval step. If Duffy had been approved for the LIHTC funding, they would have had to come before the EDA and the City Council to go through the formal TIF review and authorization steps. Duffy Development is asking the EDA (and the City Council) if there is still support for the development proposal and its resubmittal of the same (no changes) LIHTC Application to MHFA in mid July 2022. Duffy Development staff have indicated that they are not making any changes to the application because, they believe it is a quality proposal. They acknowledge that the LIHTC program is very competitive and their now enough funding to award all applications with funding. As you may recall, LIHTC funding awards require a developer to enter into a long-term contract with Minnesota Housing Finance Agency (MHFA) to provide units at a set rental rate and also use household income criteria in determining occupancy eligibility. All (100 %) of the units in the new development would be rented to households with qualifying income levels. Duffy was also seeking is seeking TIF assistance dollars and/or City fee waivers to fill a funding gap of approximately $600,000. The proposed development site is at the far west end of the Riverwood Bank parcel on 7th Street West. Duffy has entered into a purchase agreement with Riverwood Bank for a 4.18 - acre site. The site is located just east of Elm Street and adjacent to 1-94 which is on the south property line of the parcel. The 2020 Housing Study (completed in September 2020) identified a local demand range of 145 to 181 affordable units over the next 5 years. The most recent qualified affordable housing development was the 47 -unit Rivertown Residential Suites. The EDA approved a TIF District for the project in July 2018. Under the TIF Development Contract, 10 units in this building are required to be rented to households at 50 percent of the area (Wright County) median income (ami). The EDA also recently (February 23, 2022) approved two new EDA: 06/08/22 affordable housing TIF Districts (#1-42 and #1-43) related to the Headwaters Development proposal. The total number of affordable units to be constructed in those two projects is 68. This would mean that there is a remaining unmet need for about 787 to 887 affordable units in the City. Each of the most recent multi -family development projects approved in Monticello have been full market rate projects, without affordable components. These include Twin Pines, Monticello Lakes and Deephaven. Further supporting the demand for affordable housing were specific findings within the 2020 Housing Study: Page 32: • "Rental stress in Monticello exists almost entirely within low-income City households." • "There are significant gaps at both the top and bottom of the rental housing market, with an undersupply of ... affordable units with rents below $800 monthly." Page 33: • " ... Renters who are cost burdened are much more likely to be severely cost burdened (spending more than 50% income toward rental costs). Of those experiencing cost burdened, 73% are severely cost burdened. This rate is significantly higher than in regional peer communities." "This also indicates a lack of appropriately priced units for the lowest income households already living in the community and indicates opportunity to better serve low-income households through income -restricted and subsidized units that ensure affordability levels not currently provided within the market." Page 35: • "In Monticello, this would be a goal to add 265 units of rental housing affordable to the lowest income earners in the community." Excerpts from the 2020 Housing Study on the rental market demand are included for more detailed review. Staff is asking the EDA to consider the update and its request for further conceptual support for additional potential use of TIF assistance should it receive LIHTC funding. If the EDA does not support Duffy Development re -applying for the LI HTC, it should be explicit in its reasoning at this time. Al. STAFF IMPACT: There is a limited staff impact in considering the further support for Duffy Development's LIHTC application and what is essentially a pre -application for TIF assistance. The discussion and preparation of the staff report for this consideration is part of in-house staff duties. P) EDA: 06/08/22 A2. BUDGET IMPACT: This is essentially a third TIF pre -application review by the EDA. There is a very modest budget impact (normal duty staff time) due to the consideration of the TIF pre -application for EDA direction on further support for Duffy Development's affordable housing funding submittal to MHFA. B. ALTERNATIVE ACTIONS: 1. Motion of support for Duffy Development related to resubmittal of its LIHTC funding application to MHFA. 2. Motion as determined by the EDA. C. STAFF RECOMMENDATION: Staff supports the Duffy Development affordable housing proposal and continued review of TIF assistance for the project. Staff would note that the adopted 2020 Housing Study includes a goal of providing needed affordable housing in the City. Monticello's adopted 2040 Community Vision is to create a friendly and safe community which is inclusive and fosters a sense of belonging. The city has adopted a strategy for housing which includes retaining and developing a range of housing choice and opportunity. As residents move through their career paths and family status, their housing needs change. As an actively developing community, Monticello seeks to provide opportunities for a full range of "life cycle" housing options allowing them to stay and grow with our community. Duffy Development has informed staff, that if the EDA and City Council are supportive of the LIHTC funding application again, it will submit the same document packet by the July 15, 2022, deadline. If Duffy is successful in obtaining the LIHTC funding, they will continue with the TIF consideration steps with the EDA in early 2023. D. SUPPORTING DATA: a. TIF Pre -Application Submittal b. Development Concept Plans - 59 -unit Affordable Housing c. 2020 Housing Study Excerpts d. Monticello Workforce Apartments 3 CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY TAX INCREMENT FINANCING (TIF) APPLICATION BUSINESS SUBSIDY APPLICATION BUSINESS ASSISTANCE FINANCING Legal name of applicant: Duffy Development Company, Inc. Address: 12708 Wayzata Blvd., Suite 400, Minnetonka, MN 55305 952-544-6769 Telephone number: Jeff Von Feldt Name of contact person: REQUESTED INFORMATION Addendum shall be attached hereto addressing in detail the following: 1. A map showing the exact boundaries of proposed development. 2. Give a general description of the project including size and location of building(s); business type or use; traffic information including parking, projected vehicle counts and traffic flow; timing of the project; estimated market value following completion. 3. The existing Comprehensive Guide Plan Land Use designation and zoning of the property. Include a statement as to how the proposed development will conform to the land use designation and how the property will be zoned. 4. A statement identifying how the increment assistance will be used and why it is necessary to undertake the project. A statement identifying the public benefits of the proposal including estimated increase in property valuation, new jobs to be created, hourly wages and other community assets. 6. A written description of the developer's business, principals, history and past projects I understand that the application fee will be used for EDA staff and consultant costs and may be partially refundable if the request for assistance is withdrawn. Refunds will be made at the discretion of the EDA Board and be based on the costs incurred by the EDA prior to withdraw of the request for assistance. If the initial application fee is insufficient, I will be responsible for additional deposits. 6414=0401-940 Applicant's signature: Date: May 7, 2021 CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY Application for Tax Increment Financing (TIF) Assistance GENERAL INFORMATION: Business Name: Duffy Development Company, Inc. Date: May 7, 2021 Address: 12708 Wayzata Blvd., Suite 400, Minnetonka, MN 55305 Type (Partnership, etc.): Corporation Jeff Von Feldt 952-544-6769 Authorized Representative: Phone: Description of Business: Real estate developer of affordable/workforce rental housing Legal Counsel: Faegre Drinker Biddle & Reath Address: 2200 Wells Fargo Center, 90 S 7'St., Mpls FINANCIAL BACKGROUND: No 1. Have you ever filed for bankruptcy? No 2. Have you ever defaulted on any loan commitment? Yes 3. Have you applied for conventional financing for the project? 612-766-7000 Phone: 4. List financial references: Bridgewater Bank, Adam Benjamin, 4450 Excelsior Blvd., St. Louis Park, MN 55416 a. b. Platinum Bank, 605 N. HYW 169, Plymouth, MN 55441 Minnesota Housing Finance Agency, 400 Wabasha, Suite 400, St. Paul, MN 55102 C. 2 5. Have you ever used Business Assistance Financing before? If yes, what, where and when? PROJECT INFORMATION: 1. Location of Proposed Project: 2. Amount of Business Assistance requested? 3. Need for Business Assistance: 4. Present ownership of site: 5. Number of permanent jobs created as a result of project? 6. Estimated annual sales: Present: Future: 7. Market value of project following completion: 8. Anticipated start date: FINANCIAL INFORMATION: 1. Estimated project related costs: a. Land acquisition b. Site development c. Building cost d. Equipment e. Architectural/engineering fee f. Legal fees g. Off-site development costs 3 Completion Date: 2. Source of financing: a. Private financing institution b. Tax increment funds c. Other public funds d. Developer equity PLEASE INCLUDE: 1. Preliminary financial commitment from bank. 2. Plans and drawing of project. 3. Background material of company. 4. Pro Forma analysis. 5. Financial statements. 6. Statement of property ownership or control. 7. Payment of application fee of $10,000 L J 1 L ■ 1 Ir F- L L J 1 I jr RP6� !F no% -mr Norm r -1 ' A F r- -- - - - - - - - - - - - - - - - - - - - - - -- L - - - - - - - - - - - - - - - - - - - - - -- L----- r --J SLAB ON GRADE _ ABOVE THIS AREA t L 0 Y SCALE No. Sit: -------------- -------------- ----- , ___— _— __— _— f----• , N- ____ —_— _— ___ - T. n , , -_ cdr L 1 UNIT D �, ------ ------------- 3 B D ------------ L =117 UNIT "C" Ej-Ej E- ------------- n = = oQ no , 7C7 O ---- I ' 71 a ° r ' s s ' ❑ ' , o , ---- Q Q Q I � , -------------- -- IT „A'-- - --' I, , 2 B D I � ._._, �C�II UNIT "ID cA - -�� --------------- 3BD Io' - ------------ ------------- „ -----' ;.,„ „ ,----- 2011-011 UNIT "C" V� 3 BD LA E -j E_j 1— rfl�� OVERALL FIRST FLOOR ALAN SCALE: 1'-0" = 3/32" 2-1,624 S.F. ------------ - , I , ' ]h NIT "A" M„- UNIT MIX: STYLE SQUARE FOOTAGE BEDROOMS FIRST SECOND THIRD TOTAL MIX % 2 BED UNIT "A" 1,063 S.F. 2 BATH _ ✓ 5 5 16 UNIT "Al" 1,186 S.F. 2 BED 2 BATH – 1 1 2 2 BED 2 BATH 2 BED 25 TOTAL UNIT "B" 1,103 S.F. 2 BATH 1 2 2 5 2 BED UNIT "BI" 1,299 S.F. 2 BATH I 1 2 BED UNIT "H" 1,626 S.F. 2 BATH – I – I + DEN BED UNIT "C" 1,443 S.F. 2 4 4 4 12 3 BED 2 BATH 3 BED 19 TOTAL UNIT "D" 1342 S.F. 2 BATH 3 4 – -1 UNIT "E" 740 S.F. I BED I BATH 2 2 2 6 ED UNIT "F" 694 S.F. II BBA I 1 11 BBE�D 9 TOTAL I BED UNIT "G" 926 S.F. I BATH I – 1 2 5% TO BE TYPE "A" AND REMAINDER TO BE TYPE "B" 18 Iq I6 53 100% GARAGE: 21,610 S.F. FIRST FLOOR: 2-,624 S.F. SECOND FLOOR: 27,436 S.F. THIRD FLOOR: 22,028 S.F. TOTAL S.F. = 98,698 S.F. 00- LOBBY 'II STOR: ELEV. MOVING CORRIDOR TWO STORY LOBBY II' -2" IIII IIII IIII_ _ J • ,Q STOR. MAIL OFFICE MECH./ o ELECT°/ - STOR.? �Z , O = \' o -> CID ` O Y= C� o� \ y 0 -fi � 11 _ In \mr, P O 0 a - O O N W J Ll N I n 0 LJ O J d IIIIIIIIIII�. No. S V O ��: w •ails _ ✓ 00 -= = MECH./ o ELECT°/ - STOR.? �Z , O = \' o -> CID ` O Y= C� o� \ y 0 -fi � 11 _ In \mr, P O 0 a - O O N W J Ll N I n 0 LJ O J d IIIIIIIIIII�. No. S ' r -- ____ h — ____. _ _ �G- I I� i i- _- I I :a f ------------- h==_�' •, --; _- n •___! --. __ -------- -------------- ' = r I „ %I y I ,QC LM 1 UNIT "D" _ 3 - O - O - ------ ----------- I UNIT "CI" ----------------U-I oul 10 IT - U_ -J NI�KT�;I =CIE = „B „ dQ o 3 BD x_1BDCI��h�l i I 2 BD 1 w -- O L QO O O- ----- I i , a s . I �]1 7 e S ' I I lit ------ Q QO OL QO 05 QO O�] ----------ELEV. ---------' 00, 0 LOBBY OC IT "A - UNIT .,A,. _ - - - Q 2 BD 2 BD I UNIT "A " T „D` cn 2 Bo ' ELEV. ------------ 3 B D---�'---�-�-� IO' - - - 1------------- - -f--------- 1 ------ -"_---'--------- ------------------ I� 1 __ ------ � - ------ -- _ -- S S F - _. ___. ;- , - - ________J ' S I — Z7 -,)I / 2 --) 11 ,, OVERALL SECOND FLOOR FLAN SCALE: 1'-0" = 3/32" 21A36 S.F. UNIT NIX: STYLE SQUARE FOOTAGE BEDROOMS FIRST SECOND THIRD TOTAL MIX % UNIT "A" 1,063 S.F. 2 BED 2 BATH 6 5 5 16 2 BED UNIT "Al" 1,186 S.F. 2 BED 2 BATH - 1 1 2 _ 0 2 BATH 25 TOTAL 2 BED UNIT "B" 1,103 S.F. 2 BATH 1 2 2 5 2 BED UNIT "BI" 1,299 S.F. 2 BATH I - - 1 2 BED UNIT "H" 1,626 S.F. 2 BATH - I - I + DEN 4 BED UNIT "C" 1,443 S.F. 2 4 4 12 3 BED 2 BATH 3 BED 19 TOTAL UNIT "D" 1,342 S.F. 2 BATH 3 4 - , I BED UNIT "E" -140 S.F. I BATH 2 2 2 6 UNIT "F" 694 S.F. 11 B� D - - 1 I II $BEND 9 TOTAL I BED UNIT "G" 926 S.F. I BATH 1 - 1 2 5% TO BE TYPE "A" AND REMAINDER TO BE TYPE "B" 18 Iq 16 53 100% GARAGE: 21,610 S.F. FIRST FLOOR: 2-1,624 S.F. SECOND FLOOR: 21,436 S.F. THIRD FLOOR: 22,028 S.F. TOTAL S.F. = 98,698 S.F. I I ; I ' Imo_____ ____ _yi I _ _ I .____________________ ------------- Ld I UNIT "H" 2 BD REFUSE H k 0 FITNESS ROOM B EKOw OF N`70 MECH. \ l •' FCrY, C 2 - A BATH _ 0 MECH. \ l \ O 011 n J •' FCrY, C \ O 011 n J ROOF /6 �O - -----, ___ -__ ___ - - ,' - ------- ------------- ------------ 1 - - i !: !_ — — --- --- -- - ------ n ,n=_ ?1------- �F=T ''¢----j L_i, ';'.;�',�� ------- --- 1 " - --_ `=-`I-- `-------- �__ --- �� I'. _ 1 1 1 it - - - - -- _ -�------------ D F °--- ^ 1= i UNIT _ --- ------------ ---------------------- - - -- " I UNIT ,IC„ ! UNIT „C„ �_� I �_�, I I UNIT B I , ED -.,--------- 3 ��%^�f 2 ED 4ACCC iLi II : i i V i 1 I i� �l'�OQ QOETEJ M QO ° OQ- - Ou 1 O� ----- rfw ]WtA 0 -------------,�-'-I----,�--_I I---u�------------- --- ----- V. QO O QO OD QO OL LOB Y � - -- -- I I I I I I I - • 1 I 1 I I 1 QC IT "A UNIT A = 2 UNIT ,.A 'ice_ ,v J7i 1ii 2 EDk J_I IO' RENTABLE _ --LOCKERS ROROOFROOR00F ' O - r" I n z OVERALL THIRD FLOOR FLAN SCALE: 1'-0" = 3/32" 22,028 S.F. UNIT MfX: STYLE SQUARE FOOTAGE BEDROOMS FIRST SECOND THIRD TOTAL MIX % 2 BED UNIT "A" 1,063 S.F. 2 BATH 5 5 16 2 BED ti UNIT "Al" 1,186 S.F. 2 BATH - 1 1 2 2 BED 2 BATH 25 TOTAL 2 BED UNIT "B" 1,103 S.F. 2 BATH 1 2 2 5 41.2% 2 BED UNIT "BI" 1,299 S.F. 2 BATH I - - 1 2 BED UNIT "H" 1,626 S.F. 2 BATH - 1 - I + DEN UNIT "C" 1,443 S.F. 2 BATHB 4 4 4 12 3 BED 2 BATH 3 BED 19 TOTAL UNIT "D" 1,342 S.F. 2 BATH 3 4 - 1 35.8% I BED UNIT "E" -140 S.F. I BATH 2 2 2 6 UNIT "F" 694 S.F. 11 BA D - - I I 11 BBEHD 9 TOTAL I BED UNIT "G" 926 S.F. I BATH 1 - 1 2 5% TO BE TYPE "A" AND REMAINDER TO BE TYPE "B" 18 19 16 S3 100% GARAGE: 21,610 S.F. FIRST FLOOR: 2-1,624 S.F. SECOND FLOOR: 27,436 S.F. THIRD FLOOR: 22,028 S.F. TOTAL S.F. = 98498 S.F. U 'ate O K5 O ,. -�A` \O O O\ �O \O O r Eao■■■■■■■ EMSEM■■■■■ CID ti z R O \O O r Eao■■■■■■■ EMSEM■■■■■ Ln 51_1911 UTILITY I ' I ' I ' I 51_411 II' -3" - I b I L__L___�___L� O 0— L i KIiTC 1HE1N r L---------- ---II I -- I I I I I I I I L - - - - - - - - - J BEDROOM 10'—q” 6'-0" Ln I Ln WIC \JI UNIT ",4" FLOOR FLAN SCALE: 1/4" = 1'-0" TYPE "B" (UNIT COUNT): 14 1,063 S.F. I IAI lT 11/' 11 1--I l'1r1M LSI A AI (UNIT COUNT): 12 1,443 S.F. 35'-0" 1 41-011 111_3// 51_4// 51_911 41-811 I m I M M I 0— (14 _m WIC UTILITY i I I I I I F -- B ATH ------ Ilr7777__ 7777_ I O �_ 7777 DINING ROOM I ----� mil Iii ill i 1 i illi( I -- r-= r I; I );'Il r-= r )III r-= r )III L L \ -J L -J L ----J J _ _ BEDROOM 10'—q” 6'-0" Ln I Ln WIC \JI UNIT ",4" FLOOR FLAN SCALE: 1/4" = 1'-0" TYPE "B" (UNIT COUNT): 14 1,063 S.F. I IAI lT 11/' 11 1--I l'1r1M LSI A AI (UNIT COUNT): 12 1,443 S.F. 35'-0" 1 41-011 111_3// 51_4// 51_911 41-811 I m I M M I 0— (14 _m WIC UTILITY i I I I I I F -- B ATH ------ Ilr7777__ 7777_ I O �_ 7777 M UNIT "AT' FLOOR FLAN SCALE: 1/4" = 1'-0" TYPE "B" (UNIT COUNT): 2 1,063 S.F. 31'—'l„ I 11'--4" 10'-2" I i I r, E>uj ----- I I r-- i ------------ `' --- 11------ ;; I --J-r-, I b 0 I KIT14E:N� 1L J O III m I I I I LTJ I ----- - - - - -- L J I� I I I I I I I O F>,Yw>-j MASTS BEDROOM O ' I I I I ERIFY BATH I -�-� -�-�-� DINING r _ r r r ) I,I ROOM -- - , 7 7 1 WIC I L IL Ln _ _ J cr HALLWAYLn < `--- I I III I �� III r------ TLn III I k 111 l l LII-' #i 1 I I III I III I `� I I III I I ' = 1 1 II I �---III I I I I III ---,---- -"---------- 1' I I 1 II ---- `-- --- - - - - -- �- JJ LIVING � 1' 1' BEDROOM ; �-- - - r ---,I ROOM -- 7� BEDROOM L II II II I I { II' -9" II' -8" II 2'pl 5 1 I-4'-0" r - - -- u______ I-_____- {�{� ----- .-----� I Y�I UNIT "D" FLOOR FLAN SCALE: 1/4" = 1'-0" TYPE "B" (UNIT COUNT): i 1,342 S.F. I ----� mil Iii ill i 1 i illi( I -- I - I III I MASTER I BEDROOMiT " 1711 �Ii�I ri 12'_0" 'III J' LII I III I M UNIT "AT' FLOOR FLAN SCALE: 1/4" = 1'-0" TYPE "B" (UNIT COUNT): 2 1,063 S.F. 31'—'l„ I 11'--4" 10'-2" I i I r, E>uj ----- I I r-- i ------------ `' --- 11------ ;; I --J-r-, I b 0 I KIT14E:N� 1L J O III m I I I I LTJ I ----- - - - - -- L J I� I I I I I I I O F>,Yw>-j MASTS BEDROOM O ' I I I I ERIFY BATH I -�-� -�-�-� DINING r _ r r r ) I,I ROOM -- - , 7 7 1 WIC I L IL Ln _ _ J cr HALLWAYLn < `--- I I III I �� III r------ TLn III I k 111 l l LII-' #i 1 I I III I III I `� I I III I I ' = 1 1 II I �---III I I I I III ---,---- -"---------- 1' I I 1 II ---- `-- --- - - - - -- �- JJ LIVING � 1' 1' BEDROOM ; �-- - - r ---,I ROOM -- 7� BEDROOM L II II II I I { II' -9" II' -8" II 2'pl 5 1 I-4'-0" r - - -- u______ I-_____- {�{� ----- .-----� I Y�I UNIT "D" FLOOR FLAN SCALE: 1/4" = 1'-0" TYPE "B" (UNIT COUNT): i 1,342 S.F. Ln BEDROOM �-_ _ III I I I III I I I III I , I 51-911 �I UTILITY c I II « I � I I I I I I I KItCHER -- ob I I I I I IL I I I I I L IIS/ 1 � L\-� IIS/ 1 L\-� DINING Lo I V4 O ROOM 1'I'II �m L L\ J L\ -JL J J E EJ El - J ao I �---J \ I �I I I-- __ I II I III I IJ.-_______--_ / I I I I T I I I I II I ITd� IIF I ------------- 11 24'—O" '-10" I m I a- N Lo I V4 O Ili/ 1 it Ili/ 1 it L\-� �m ------------- c_ L I V I N G —ROOM m }------� m Ll -\-J L__J r - L—T E E I - J ao I �---J \ I �I I I-- __ I II I III I IJ.-_______--_ / I I I I T I I I I II I ITd� IIF I ------------- 11 24'—O" '-10" I m I a- N Lo I V4 O Ili/ 1 it Ili/ 1 it L\-� �m ------------- c_ L I V I N G —ROOM m }------� m Ll -\-J ROOM r - L—T E E I I 111 I I I III I I I I I I I I I I I I I UNIT "E" FLOOR FLAN SCALE: 1/4" = 1'-0" TYPE "B" (UNIT COUNT): 6 140 S.F. cel I 0- N UNIT "B" FLOOR i=L,4N SCALE: 1/4" = 1'-0" TYPE "B" (UNIT COUNT): 5 1,103 S.F. frL"lQrA(I I I m I a- N Lo I V4 O Ili/ 1 it Ili/ 1 it L\-� �m --- —ROOM m m Cr � I m I a- N Lo I V4 Ili/ 1 it Ili/ 1 it L\-� N --- —ROOM m Ll -\-J L\ J r - L—T E E I 111 UNIT "F" FLOOR i=L,4N SCALE: 1/4" = 1'-0" TYPE "B" (UNIT COUNT): 1 694 S.F. 6'_O„ / LLi I--------- REFU E 0I I I ---------- ---- BATk, ------------BATW O I JI 5, -901 1 y I ll O (UTILITY bo 11'-3" I � I I I I I I I I Ir I I I I I I I I I I KltCHER - - L- - - - - I I r- - - - - - - - - I I I I�______J --- BEDROOM _ �---- 11 I IIIA===r1 ---J o / I� riIJ. -_-----------------I II II I 11 Ili - DEN 1I�-111 T�I II iT - t r--�--��_10° IJIFJ I --- ==ll ------------- I' Ili/ 1 it Ili/ 1 it L\-� Ili/ 1 L\-� DINING —ROOM Ll -\-J L\ J L\ J J L—T E E --- BEDROOM _ �---- 11 I IIIA===r1 ---J o / I� riIJ. -_-----------------I II II I 11 Ili - DEN 1I�-111 T�I II iT - t r--�--��_10° IJIFJ I --- ==ll ------------- I' wi C MASTER ---I BEDROOM --------------- I I IL III I 121_0° I I UNIT "BT' FLOOR FL�4N SCALE: 1/4" = 1'-0" TYPE "B" (UNIT COUNT): 1 1,299 S.F. 9 O in f I N m r I I I III I I I I I I I I I I I I I I I I I r I I I I I I III I I LIVING }------� ROOM wi C MASTER ---I BEDROOM --------------- I I IL III I 121_0° I I UNIT "BT' FLOOR FL�4N SCALE: 1/4" = 1'-0" TYPE "B" (UNIT COUNT): 1 1,299 S.F. 9 O in f I N m r UNIT "G" FLOOR PLAID SCALE: 1/4" = 1'-0" TYPE "B" (UNIT COUNT): 2 926 S.F. UNIT "H" FLOOR PLAN SCALE: 1/4" = 1'-0" TYPE "B" (UNIT COUNT): 1 1,626 S.F. r _I� 1 �II�.,IIIIIIIIIIIIIIIIIL.III ■I■I■II ■■I■I■I■I■II W1 — ___ ___ =■■I■I ■I■I■II —■■I■I ■I■I■II — ___ ___ = II■■■ ■■■� ■■■■I■I■II ■■� - --- --- - - - --- --- - - - - — 1111• - 1111. �e ,, .: - , ..• —.. _ I I _ 11111 _ � 11111 � - _- _ 111111 � 111111 ,. .:•"'� �-1=- - - - 11111 - C 11111 ._ -..:. 11111 _ 11111 11111 _ _. _. ._r. ... _. IIS, IIIIIIIIIIIIIIIIII III 1 II►� JIIIIIIIIIIIIIIIII III 1 _ SENSE INS _\_ __•-_ __•- �� ..- � � �,�� _ __•__ INS- •- 4' ,,, ry y T �. IWE I �, .. 4_: 7 ts.:+. '-- , '. 1.1:�: —i` .-v • _ _ •. _ � :CCL-: i:L�] -'�- -. .m_::� .; �.rt:z ...L— x s _L �� . ..,IIIIIIIIIIIIIIIIII _ _ r I III 111111 IIII III I r - 2.1 SOLDIER COL GRAIDE kwimm. -m pwal.:sidu, I��i+i SME ■I■I■ ■I� � M �I�I� C SII milli�n ■SENSE _ NSI .:� SENSE _�� IIIIIIIIIIIIIIIIII �� = __m■�iwllu- _— M :_ SENSE I hI I- _ ► 11111.. _I ly .�.x . _ 11111 T - -- �� A q� 7 _1� —_IIS IIIIIIIIIIIIIIIIII III 11111 �. �-� _ _1 tl It - ■ ■iii w r - ■ ■ L oid IIIIIIIIIIIIIIIIIII liiiir, 1:FrM .rw±vTa:nr- :3h [ 1 IIIIIIIIIIIIIIIIII�!liiuih 1 I METAL DRIP EDGE CONTINUOUS RIDGE VENT PRE -FINISHED METAL FASCIA 2X6 SUB FASCIA PRE -FINISHED METAL SOFFIT PRE-ENGINEERED WOOD GABLE END TRUSS - HORIZ. LAP SIDING - SEE ELEVATIONS RIDER ------------ - - - - -- �\ II o I I I I BLOCKING AS REQ'D. I I I I I I I I I I I I I I I I I I26 I I 901 I UNIT I I I I I I I I I I I I I I I I I I I I SECOND FLOOR = 122'-3 3/4" I 30 aeon ------— — — — — — — ' PRE -ENG. ALUMINUM BALCONY t RAILING SYSTEM TRUSS BRG. = 120'-3" PROVIDE SPRINKLER HEADW-I LAYER 5/8" GYPSUM BOARD AT BALCONY AS REQ'D. ON RC CHANNELS 9 12" O.C. o COND FLOOR = III'—I 1/8" PRE -ENG. ALUMINUM BALCONY t RAILING SYSTEM TRUSS BRG. = 109'-1 1/8" PROVIDE SPRINKLER HEAD I LAYER 5/8" GYPSUM BOARD AT BALCONY AS REQ'D. ON RC CHANNELS a 12" O.C. — HORIZ. LAP SIDING - SEE ELEVAT 1/16 ' ZIP WALL SHEATHING 2x6 PRE-CUT STUDS SEE STRUCT. R-21 MIN. SPRAY FOAM INSULATION AT R-21 BATT INSULATION ALL RIM JOIST AREAS 4 MIL VAPOR BARRIER 5/8 " GYPSUM BOARD CONTINUOUS RIDGE VENT 12 4 ROOF TRUSSES, SEE STRUCT. PROVIDE BLOWN -IN INSULATION TO MEET STC/IIC IN FLOOR TRUSS CAVITY PRE -ENG. WOOD FLOOR - TRUSSES, SEE STRUCT. PROVIDE BLOWN -IN INSULATION TO MEET STC/IIC IN FLOOR TRUSS CAVITY r y�Jl� PRE -ENG. WOOD FLOOR TRUSSES, SEE STRUCT. ATTIC NOTE: PROVIDE DRAFTSTOP COMPARTMENTS AS REQUIRED IN COMPLIANCE WITH NFPA 13R REQUIREMENTS (OPTIONAL) 2X OR PLYWOOD WALKWAY 2XIO W/ (2) LAYERS 5/8" TYPE "X" GYP. B ARD BD. ACOUSTICAL CEILING TILE CORRIDOR 2x6 STUDS SEE STRUCT. 5/8" GYPSUM BOARD - 1/2" R.C. CHANNEL S 1/2" SOUND JNSULATION ASPHALT SHINGLES BUILDING PAPER 1/2" APA RATED ROOF SHEATHING PRE -ENG. WOOD ROOF TRUSSES SEE STRUCTURAL PLANS R-49 (MIN.) BLOWN INSULATION 4 MIL VAPOR BARRIER I LAYER 5/8" GYPSUM BOARD ON RC CHANNELS ® 12" O.C. O UNIT PROVIDE BLOWN -IN INSULATION TO MEET STC/IIC IN FLOOR TRUSS CAVITY 3/4" FLOOR SHEATHING O 1 1' GYPCRETE TOPPING WOOD JOISTS I SEE STRUCT. 38 CONT. RIM - SEE STRU T. CONT. RIM - SEE STRU T. (I)LA R 5/8' TYPE 'X' GYP. D. (1) LA R 1/2' MIN. TYPE 'X' G . BO. FOR R I HR. PROTECTION I STC/IIC IN FLOOR 15 A801 ACOUSTICAL CEILING TILE 3/4" FLOOR SHEATHING O - 01 1 � O I PROVIDE 1/2" X 3" STRIP OF GYP. BD. BACKER AT TOP AND BOTTOM OF WALL AS WELL AS AT ALL OUTSIDE CORNERS AND AROUND ALIS DOORS (TYP.) �nni 3/4 GYPCRETE, TYP. UNIT 3/4' GYPCRETE, TYP. UNIT ANCHOR S 48. O.C. MAX. 2x6 TREATED PLATE w/ SILL SEALER GRADE VERIFY FLASHING AS REQ'D. O 1 1' GYPCRETE TOPPING 38 CORRIDOR 38 901 901 INSULATIONTOBLOWN-IN MEET W/ CIVIL DRAWINGS STC/IIC IN FLOOR TRUSS CAVITY 2" STUDS SEE STRUCT. 5/8" GYPSUM BOARD 1/2" R.C. CHANNEL 3/4" FLOOR SHEATHING 5 1/2" SOUND NSULATION SLOPE FIN. FLOOR WOOD JOISTS I SEE STRUCT. - -- ELEV. 100'-0" \-CONT. RIM - SEE STRUCT. ---------------� 11 -----------------�----------- -------- —CONT. RIM - SEE STRUCT. y ----------------------- -o - - - - - - - - - II)LA R 5/8' TYPE 'X' GYP. D. ID LA R 1/2' MIN. TYPE 'X' GY P. BD. 3 HR. FLOOR / CEILING FOR OVER I HR. PROTECTION �1=IIII—IIII—I .�.�.�� I --- --� 15 A801 ACOUSTICAL CEILING TILE — — — — — — —� o �.:. . - -�,5 sss� .�� III—IIII.. CORRIDOR IIII O - 01 1 � O I PROVIDE 1/2" X 3" STRIP OF GYP. BD. BACKER AT TOP AND BOTTOM OF WALL AS WELL AS AT ALL OUTSIDE CORNERS AND AROUND ALIS DOORS (TYP.) �nni 3/4 GYPCRETE, TYP. UNIT 3/4' GYPCRETE, TYP. UNIT ANCHOR S 48. O.C. MAX. 2x6 TREATED PLATE w/ SILL SEALER GRADE VERIFY FLASHING AS REQ'D. 1' GYPCRETE TOPPING W/ CIVIL DRAWINGS SLOPE FIN. FLOOR - -- ELEV. 100'-0" --- --= ---------------� 11 -----------------�----------- -------- - ------ y ----------------------- -o - - - - - - - - - 111 IIII-1111-1111 3 HR. FLOOR / CEILING 3 HR. FLOOR / CEILING 00 �1=IIII—IIII—I .�.�.�� --- --� ---------- ------------ — — — — — — —� o �.:. . - -�,5 sss� .�� III—IIII.. T.O. PRECAST ,.. -: - - - - -- - - - - - -- ---;— -- --- — -- ---- — --------- -- — — — - -- -- — — --- ...... ELEV. 99'-11" - TREATED SILL PLATES 8' PRECAST CONCRETE PLANK CONCRETE PLANK, w/ I' GYPCRETE TOPPING PROVIDE I" RIGID VERIFY W/ STRUCTURAL SCREW ANCHORS (SIDE SPANS) INSULATION SEE STRUCT. FILL CORE WITH INSULATION CORE FILL PLANK AT 4'-0" BACK WHEN NO 12" PRECAST CONC. PLANK PRECAST ANCHORS, SEE STRUCT. STRUCTURAL ANCHOR w/ I" GYPCRETE TOPPING BEAM CORE FILL PLANK AT PRECAST (CENTER SPAN) SEE STRUCT. CONCRETE PATIO DOWN MAX. I/2' ANCHORS, SEE STRUCT. BEAM SEE STRUCT. FROM T.O. OF PATIO THRESHOLD. SEE STRUCT. SLOPE AWAY FROM BUILDING AS REQUIRED. I O ° GARAGE - GARAGE DRIVE LANE TEXTURED PRECAST COL., 12" INSULATED PRECAST SEE STRUCT. PANEL, SEE PANEL DWG'S. R-15 MIN. WATERPROOFING MEMBRANE PRECAST COL., BELOW GRADE AS REQ'D. SEE STRUCT. PER MANUFACTURERSJOINT, RECOMMENDATIONS SEE STRUCT. 24'-0" MIN. CLEAR JOINT, SEE STRUCT. 12" INSULATED PRECAST 4" POURED CONC. SLAB 4" POURED CONC. SLAB PANEL SEE PANEL DWG'S. VERIFY W/ STRUCT. t SOILS REPORT VERIFY W/ STRUCT. t SOILS REPORT 4" POURED CONC. SLAB R-15 MIN. REINFORCED AS REQ'D. REINFORCED AS REQ'D. VERIFY W/ STRUCT. t SOILS REPORT SEE STRUCT. SEE STRUCT. REINFORCED AS REQ'D. SEE STRUCT. 10 MIL. VAPOR BARRIER ; DRAIN TILE IN GRAVEL BASE AS REQUIRED FIN. FLOOR FIN, FLOOR T.O. FOOTING ELEV. 89'-O" ELEV. 89'-O" SEE STRUCT. S ° • 9 .:Q v " a a 10 MIL. VAPOR BARRIER 10 MIL VAPOR BARRIER rikk T.O. FOOTING CONNECTION BY GRANULAR FILL ON SEE STRUCT. PRECAST SUPPLIER COMPACTED BASE GRANULAR FILL ON PER SOILS REPORT a r COMPACTED BASE SEE STRUCT. PLANS GRANULAR FILL ON PER SOILS REPORT FOR FOOTINGS COMPACTED BASE PER SOILS REPORT CONNECTION BY CONNECTION BY NOTE: CONTRACTOR TO VERIFY ALL PRECAST SUPPLIER PRECAST SUPPLIER RECOMMENDATIONS BY GEOTECHNICAL ENGINEER PER SOILS REPORT POURED CONCRETE PAD FOOTING, SEE R-10 MIN. RIGID INSUL. STRUCTURAL PLANS FOR SIZE AND REINFORCING SEE STRUCT. PLANS FOR FOOTINGS BALCONY WALL SECTION („CORRIDOR WALL SECTION ��TYPICAL WALL SECTION SCALE: 1/2" = 1'-0" SCALE: 1/2" = 1'-0" SCALE: 1/2" = 1'-0" HORIZ. LAP SIDING - SEE ELEVATIONS 1116 ' ZIP WALL SHEATHING 2x6 PRE-CUT STUDS SEE STRUCT. R-21 BATT INSULATION 4 MIL VAPOR BARRIER 5/8 " GYPSUM BOARD SECOND FLOOR = 122'-3 3/fii CONT. RIM - SEE STRUCTURAL R-21 MIN. SPRAY FOAM INSULATION AT ALL RIM JOIST AREAS TRUSS BRG. = 120'-3" rL HORIZ. LAP SIDING - SEE ELEVATIONS 1/16 ' ZIP WALL SHEATHING 2x6 PRE-CUT STUDS SEE STRUCT. R-21 BATT INSULATION 4 MIL VAPOR BARRIER 5/8 " GYPSUM BOARD SECOND FLOOR = III'—I —1/8" CONT. RIM - SEE STRUCTURAL R-21 MIN. SPRAY FOAM INSULATION AT ALL RIM JOIST AREAS TRUSS BRG. = 109'-1 1/8" rL -FLASHING AS REQ'D. -CULTURED STONE CAP CULTURED STONE WATER RESISTIVE BARRIER OR TWO LAYERS OF 815 FELT, CORROSION RESISTANT WIRE LATH I A SCRATCH COAT BEHIND CULTURED STONE. (SEE MANUFACTURER FOR FURTHER RECOMMENDATIONS I REQUIREMENTS) FLASHING t WEEP SCREED AS REQ'D. CULTURED STONE PER MANUF. SPECS. CAP - TYP. FIN. FLOOR ELEV. 100'-O" T.O. PRE -CAST ELEV. 99'-11" FLASHING t WEEP SCREED AS REQ'D. PER MANUFACTURER'S SPECIFICATIONS PRE -CAST PANEL VERIFY DECORATIVE TEXTURED PATTERN W/ OWNER / G.C. GRADE VARIES, SEE CIVIL WATERPROOFING MEMBRANE BELOW GRADE AS REQ'D, PER MANUFACTURERS RECOMMENDATIONS POURED CONC. FOUND. SEE STRUCT. NOTE: CONTRACTOR TO VERIFY ALL RECOMMENDATIONS BY GEOTECHNICAL ENGINEER PER SOILS REPORT T.O. FOOTING bi SEE STRUCT. (42" FROST DEPTH MIN.) VERIFY W/ CIVIL DRAIN TILE IN GRAVEL BASE AS REQUIRED N m 0 0 0 0 0 N Li J LL 0 N I N I n 0 w 0 J a_ 7th Street Storm Manholes Storm Inlets Catchbasin Standard Inlet Storm Discharge Points CITY OF 11 jZMoT1i1Ao . Standard Outlet Y: Storm Fittings Storm Gravity Mains IN 1 in=188 ft N A April 28, 2020 Map Powered By DataLink wsb STREET WEST 7TH STREET WEST 7TH BEGIN PROJECT 4S.A.P.222-101-007 STA.24+88.00 / 18.3 CY CLASS IV RIP RAP W/36 SY GEOTEXTILE FABRIC a 5000 C9 A, 0 FT 30 60 \ o\ 002 3+o0 4� 50 sty SU +00 - 31+Op_ - \ o 26 5004 5008 _� �; / w o s F(� / 500 5006 �� 3 44V Co a _ 5010 �a= 0 5014 m 5005 5007 �� a BENCH MARKS W E / TOP NUT HYDRANT _ THIS DRAWING IS OUR RECORD KNOWLEDGE OF STA. 27+46 EL=948.18 �� C N THE PROJECT AS CONSTRUCTED STA. 30+36 EL=952.950 o RECORD DRAWING STA. 33+11 EL=952.28 ww<s e STA. 35+91 EL=952.10 � a SHIBANI BISSON, P.E. - PROJECT ENGINEER WSB & ASSOCIATES INFORMATION IS FURNISHED WITHOUT NOTES: 3" TOM BOSE - CONSTRUCTION OBSERVER WARRANTY AS TO ACCURACY. USERS 1. SEE SHEET 29 FOR STORM SEWER LATERALS. CITY OF MONTICELLO SHOULD FIELD VERIFY LOCATIONS AND ELEVATIONS. 2. ALL JUNCTION STORM MANHOLE CASTINGS TO BE LOCATED Q JANUARY 2014 BETWEEN CURB AND PARKING STRIPE, NOT IN THRU LANE Z F- Ow O . N t= N . N. Z U W z F Z 960 � . �. 960 W Q Z Z ZC Lu C Lu � 955 .n 955 C� � . o f F�Uo 011 5013 u~iu~i0J a J F- W 950 . — \ _ — _ —.--:0d� e. 1 ro 950 J U H d 50 6 945 . . . . . . 7U /. 04 11s.s' . . . . . . . . . . . . . . . . . . 945 . 5002 . / . LASS III ®• 1.00% . \. 940 m 7.5' MIN. 52 W TE AI�J 940 762 — 1 L4 — — — SE)939.20. 46.81 94618 (,SW) . . 935 1 I� �� 937:6193k6() 37 W)938:78. 935 . ~� . 934.2 (E) �z� (E) .93§§9W) 935.89 935.44 -�E 44:6 140' Rcp .CLAS iB11 0 RCP 111 ®9137-,"6 . o0 o 930 . . . �I . . . . u . . . 934.27(NW) . . . . . . . 9A.44 S) 942.936 83. . . . . . . CL-ASS-111 01:00%•1.23% . . . . . . . . . . . . . . . . . . . . . . . . 930 a � o 933.06 NE) 102'. 11_36" RC m� d �. ' w w.W I o ' 935.07 930.74 SW) SUMP) al-36" CLASS 111 RCP 0 4wG961.19%. CLASS IU ® 1.00%0.76%• z 925 N'o i . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 925 �.Ir a n. �.z cq N . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . M - 920 m ran 920 N M M N .. m W .. .. .. W N y N m m O m m m ." m ." m a" m ." m m m m M� m m O m m ST 590 25+00 26+OC 27+00 28+00 29+00 30+00 31+00 32+00 CONTRACTOR: KUECHLE UNDERGROUND CITY PROJECT NO.- 12CO02 STORM SEWER AND STREET MANUFACTURE LIST: CONCRETE - COUNTY MATERIALS//VALVES - AFC //MEGALUGS - SIGMA//FITTINGS - UNION USA// DIP - AMERICANHPVC - JM EAGLE S.A.P.NO. - 222-101-007 WEST 7TH STREET SHEET 27 OF 53 SHEETS 32 RENTAL STRESS BY INCOME RENTAL STRESS in Monticello exists almost entirely within low-income City households. While there are renter households over 80% AMI that experience cost burden, higher -income cost burdened households often have the option to spend more than 30% of income toward housing while still maintaining the ability to cover fixed costs - cost burden by choice. Due to the structure of the rental market in the City, there are gaps in unit availability at appropriate price points to serve specific incomes in the market. Overall, there is a general oversupply of low-cost units that serve households between 31 % and 80% AMI (approx. $800 - $1,300 monthly rent). These units represent natural appreciation of units within the market - they do not have subsidies that allow them to alleviate cost burden for the lowest - income households, while also not filling demand for the highest -income users in the market. There are significant housing gaps at both the top and bottom of the rental housing market, with an undersupply of market -rate units for households earning over 80% AMI (rental housing cost $1,500+) as well as affordable units with 250 200 150 100 50 Less than $20,000 $20,000 - $34,999 rents below $800 monthly. Although there is a high market gap, there is an upwards limit to income that can realistically be spent on housing. Many higher income households also value affordability (spending less than 30%), so this does not display true unit for unit demand for high cost housing. It does create some additional market tension, where some high income households rent significantly below what they could afford, using units otherwise affordable to lower-income households. RENTAL UNIT MISMATCH *most recent available data - does not include Monticello Crossings Source: American Community Survey 5 -Year Estimates M m $35,000 - $49,999 $50,000 - $74,999 0% - 30% AMI 480 215 31% - 50% AMI 200 650 51% - 80% AMI 405 460 > 81% AMI 285 45* -240 *most recent available data - does not include Monticello Crossings Source: American Community Survey 5 -Year Estimates M m $35,000 - $49,999 $50,000 - $74,999 ■ Cost Burdened Severely Cost Burdened > $75,000 33 RENTAL HOUSING STRESS COST BURDENED RENTER HOUSEHOLDS Source: American Community Survey 5—Year Estimates LEVELS OF COST BURDEN (2018) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Monticello Buffalo Becker ■ Cost Burden (30%-50% Income Toward Rent) RATES OF RENTER COST BURDEN may be low in Monticello overall, but those renters who are cost burdened are much more likely to be severely cost burdened (spending more than 50% income toward rental costs). Of those experiencing cost burden in the City, 73% are severely cost burdened. This rate is significantly higher than in regional peer communities, 21.7 points higher than the next closest community. While rates of cost burden are low overall, higher income households "renting down", as well as increased demand in the market overall increases competition for units in the moderate- and middle- market segments. This also indicates a lack of appropriately - priced units for the lowest income households already living in the community, and indicates opportunity to better serve low-income households through income -restricted and subsidized units that ensure affordability levels not currently provided within the market. Big Lake St. Michael Wright County Severe Cost Burden (>50% Income Toward Rent) Source: HUD Comprehensive Housing Affordability Strategy Renta( Market Monticello 174 4;, 72.5% Buffalo 519 420 44.7% Becker 72 38 34.5% Big Lake 289 29 9.1% St. Michael 165 159 48.6% Wright County 1,889 1,951, 50.8% Source: American Community Survey 5—Year Estimates LEVELS OF COST BURDEN (2018) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Monticello Buffalo Becker ■ Cost Burden (30%-50% Income Toward Rent) RATES OF RENTER COST BURDEN may be low in Monticello overall, but those renters who are cost burdened are much more likely to be severely cost burdened (spending more than 50% income toward rental costs). Of those experiencing cost burden in the City, 73% are severely cost burdened. This rate is significantly higher than in regional peer communities, 21.7 points higher than the next closest community. While rates of cost burden are low overall, higher income households "renting down", as well as increased demand in the market overall increases competition for units in the moderate- and middle- market segments. This also indicates a lack of appropriately - priced units for the lowest income households already living in the community, and indicates opportunity to better serve low-income households through income -restricted and subsidized units that ensure affordability levels not currently provided within the market. Big Lake St. Michael Wright County Severe Cost Burden (>50% Income Toward Rent) Source: HUD Comprehensive Housing Affordability Strategy Renta( Market 35 RENTAL UNIT CONSUMPTION WHILE UNIT CHOICE is important to the freedom and desirability of the local housing market, more options at appropriate price points can help guide consumers into more appropriately priced units that ease burden at all levels. Comments received in the Community Survey largely called out this need for housing across multiple price points - even when not directly asked. While a few respondents were hesitant toward new development, themes largely arose that clearly identified both affordable and executive level housing options as needs within the community. This included a significant response for increased housing support directed toward households at risk of homelessness - which per HUD guidance is considered severely cost burdened, extremely low-income renter households (approx. 225 of these households currently live in the City). RENTAL UNIT HOUSEHOLD OCCUPANCY The survey also identified specific building types they would like to see within the market - and in addition to amenity -rich market rate options for renters who may choose to telecommute, attached unit and townhome development were commonly listed as options to help fill the mid-level market, whether ownership or rental. In looking to directly address rental costs for low- income households, one method commonly used is to aim to add the undersupply. In Monticello, this would be a goal to add 265 units of rental housing affordable to the lowest -income earners in the community (0% - 30% AMI households). This would allow options for these households to eliminate or severely reduce their housing costs, decrease rates of rental cost burden, and open up units they were occupying to other households in the community or moving to the community at price - points appropriate to their own income. I I I I V12 .9 ffWC4;1 ; IvIlm11w," IF)EFR4 RNUMM Affordable at 30% 175 40 0 0 0 Affordable 31% - 50% 195 85 210 105 60 Affordable 51% - 80% 95 60 180 50 70 Affordable at >80% 15 15 15 0 0 100 RENTAL DEMAND - LOW ESTIMATE Within the rental market, projections are based on projected household growth, current rates of household tenure for demographics likely to be seeking rental housing, and then focused based on rates of affordability to current residents who rent within the housing market. This demand analysis indicates a slow shift from ownership to renter markets, consistent with changes in rates of tenure over the past decade. Gradual and thoughtful demand -driven outcomes will likely see more a higher percentage of rental units created in an average year than the current overall percentage of renters in the community. The low estimate for rental housing in the next 5 years assumes fewer new units than have been created in the past 5 -year period, and should be treated as a baseline for unit development, not a target that should preclude development when the baseline has been met. New - Housing Demand Demand from Household Growth Within the City - Household Growth in Rental Demographics 329 additional households Demographic Renter Rate 37% Demand from New Construction 122 rental units Demand from Existing Resident Households Current Renters in Market 62 households Percent of Renters Seeking New Housing 28% Increased Demand from Existing Renters 325 rental units Renters with Preference for New Construction 20% Existing Renter Demand for New Construction 65 rental units Total Demand for New Construction Rental Units = 187 units Affordable Units 50% Mid -Level Units 40% High Market Units 10% New Affordable Demand 93 units New Mid -Level Demand 75 units New High Market Demand 19 units Additional Need for Vacancy 52 units Additional Need for Vacancy 32 units Additional Need for Vacancy 19 units Total Affordable Need 145 units Total Mid -Level Need 107 units Total High Market Need 38 units Total Unit Need = 290 units City of Monticello Housing Needs and Demand RENTAL DEMAND - HIGH ESTIMATE 101 High estimates for rental demand assume continued, strong demand within the market - and matches approximately the same number of units that have been created over the past 5 -year period. This suggests continued demand for development types that have been coming forward in the City, and planning for the trend to continue will allow the City to identify sites and areas through downtown and key corridors. The City can balance market demand for more rental housing with small town character through smart siting and design regulations. This estimate of demand may come to be met if growth pressures increase further than current projections indicate, and developments should be considered based on their own merits and demonstrated need on an annual basis. New - Housing Demand Demand from Household Growth Within the City - Household Growth in Rental Demographics 510 additional households Demographic Renter Rate 37% Demand from New Construction 189 rental units Demand from Existing Resident Households Current Renters in Market 62 households Percent of Renters Seeking New Housing 28% Increased Demand from Existing Renters 325 rental units Renters with Preference for New Construction 20% Existing Renter Demand for New Construction 65 rental units Total Demand for New Construction Rental Units = 254 units Affordable Units 50% Mid -Level Units 40% High Market Units 10% New Affordable Demand 127 units New Mid -Level Demand 102 units New High Market Demand 25 units Additional Need for Vacancy 54 units Additional Need for Vacancy 34 units Additional Need for Vacancy 20 units Total Affordable Need 181 units Total Mid -Level Need 136 units Total High Market Need 45 units Total Unit Need = 362 units Unit Demand & Recommendations Monticello Workforce Apartments EDA Financial Review June, 2022 Sources and Uses of Funds Development Expenses Amount Previous Yr. Land $ 609,000 $ 609,000 Hard Construction Costs $ 13,513,000 $ 11,411,000 Professional Fees $ 1,551,000 $ 1,539,000 City Development Fees $ 493,000 $ 463,000 Other Soft Costs $ 530,070 $ 392,718 Financing Costs $ 667,680 $ 546,850 Capitolized Reserves $ 349,250 $ 349,250 Total Development Expenses Development Sources Amortizing First Mortgage (GMHF) Monticello TIF calculated Mortgage Limited Partnership Equity (Tax Credits) GAP Energy Rebates Total Permanent Sources $ 17,713,000 $ 15,310,818 $ 4,490,000 $ 3,103,000 $ 600,000 $ 500,000 $ 12,039,000 $ 11,676,332 $ 565,000 $ 12,486 $ 19,000 $ 19,000 $ 17,713,000 $ 15,310,818 EDA Agenda — 06/08/2022 10. Consideration of Authorizing an Amendment to the WSB Contract for Structural Engineering Analysis of Block 52 Buildings and Demolition Mitigation Recommendations Related to EDA owned Buildings and Remaining arivately owned structure in Block 52 in an amount not to exceed $42,048 (JT) A. REFERENCE & BACKGROUND At the April 13, 2022, regular EDA meeting, the EDA authorized entering into a Structural Engineering Analysis contract with WSB & Associates Engineers related to Block 52 building demolition mitigation measures in the amount of $24,500. The EDA is now asked to consider authorizing an amendment to the WSB contract for Structural Engineering Analysis services in connection with the Block 52 Redevelopment Proposal. City staff recently held a scoping meeting with the WSB Engineering team in which discussion of additional services were noted that may provide higher levels of risk management assurance for the EDA and the three remaining property owners in Block 52. At the request of City staff, WSB then prepared an addendum of additional services and pricing for work tasks that would offer further risk assurance related to structural integrity of buildings and mitigation steps in Block 52 including during construction activities. The amendment proposal is attached to this staff report. The amendment contains several separate identified work components, each with distinct pricing. Staff would remind the EDA of the close and/or adjacent proximity of the remaining structures to the EDA buildings to be demolished and the construction activities that are to be undertaken. The amendment proposal is in essence a sort of extra safeguard step that staff believe is prudent in this overall process. At the writing of this report, a meeting is scheduled with the developer on Friday June 3, 2022, during which the topic of components of this proposed amendment will be reviewed. Due to the timing of this meeting, staff is suggesting that the EDA would authorize an up to amount in the amendment proposal because it may be possible that the developer can offer assurances that it can reduce structural integrity risk to the remaining buildings during the construction activities. Al. Staff Workload Impact: Staff involved in this process include the Community Development Director, the Economic Development Manager. The administration and execution of the actual evaluation and analysis work tasks may also require coordination between the Community Development, Department of Building Safety, Engineering and Public Works departments. EDA Agenda — 06/08/2022 A2. Budget Impact: The costs of the scope of work described in the amendment proposal submitted by WSB & Associates is $42,048. Funding may be sourced from increment generated from new development in Block 52 (TIF#1-45) and/or existing TIF District with extra funding, 1-6 funds, 1-22. In the interim period, the EDA General Fund has sufficient funding to cover the expected cost of the work. ALTERNATIVE ACTIONS 1. Motion to authorize an amendment to the WSB contract for structural engineering analysis of buildings and demolition mitigation recommendations related to Block 52 redevelopment efforts including building demolition and new construction activities in an amount not to exceed $42,048. 2. Motion to table for additional research and/or discussion. C. STAFF RECOMMENDATION Staff recommends that the EDA move forward with alternative #1. The additional work tasks are deemed critical to prudent risk management related to the demolition of the existing buildings in Block 52 as well as the remaining privately owned buildings. The proposal also provides a service option further extending risk management through review of developer plans and vibration monitoring during the construction activities. These steps will assure the remaining property owners in the Block that best practices are being used in the demolition and construction process. D. SUPPORTING DATA A. WSB & Associates Amendment Proposal B. WSB Original Structural Analysis Proposal C. Site Aerial 2 0 U 6 z w w 3 v z a 0 a Q w z z 0 M w H w z w d z w X 0 May 31, 2022 Jim Thares Economic Development Manager - City of Monticello 505 Walnut Street, Suite 1 Monticello, MN Mr Thames, WSB is pleased to submit this amended scope for the following services: 1) the precondition survey of 3 surrounding properties a. exterior survey and report b. interior survey and report 2) vibration monitoring plan a. for demolition b. for construction 3) vibration monitoring a. for demolition b. for construction 4) review of developer plans for Monticello, MN a. Review and comment on demolition plans b. Review and comment on construction plans wsb We feel we are a good fit to provide services for this project, as we have the experience and knowledge to complete this project. Below is a summary of our proposed scope. Please feel free to review and provide feedback to us at your earliest convenience. Figure 1: Overall layout I N f L- AM Page 2 Figure 1 shows the overall layout of the buildings on this block. The six buildings in red are the buildings set to be demolished (already in WSB's scope). The three buildings in yellow will remain Buildings 1 and 7 share a common wall. CONSULTANT SERVICES: SCOPEOF WORK PHASE 1: Precondition Surve Task 1a. — External Building Survey Carl Osberg, PE will overview the external precondition survey on the project. An external survey will be completed at each building deemed to be at risk during construction. Three buildings will be surveyed before demolition. These surveys will serve as a standard for the building integrity before any damages that may occur. The surveys will consist of a report with photo logs and descriptions of existing defects as well as precautions need for the demolition and construction projects. Task 1b. — Interior Building Survey Carl Osberg, PE will overview the internal precondition survey on the project. An interior survey will be completed at each building deemed to be at risk during construction. Three buildings will be surveyed before demolition. These surveys will serve as a standard for the building integrity before any damages that may occur. The surveys will consist of a report with photo logs and descriptions of existing defects as well as precautions need for the demolition and construction projects. Postcondition surveys will be performed if needed. Fee will be negotiated if necessary. PHASE 2: Vibration Monitorinq Plan Task 2a. — Demolition Vibration Monitoring Plan Carl Osberg, PE will lead the development of a vibration monitoring plans for the Block 52 demolition. The demolition monitoring plan will serve as a guideline to the vibration monitoring to ensure the existing infrastructure is not negatively impacted. The plan will clearly state the vibration thresholds and trigger levels for the monitor boxes. The plan will also include corresponding actions and contingencies if vibration thresholds are reached. Task 2b. — Construction Vibration Monitoring Plan Carl Osberg, PE will lead the development of a vibration monitoring plans for the Block 52 construction. The construction monitoring plan will serve as a guideline to the vibration monitoring to ensure the existing infrastructure is not negatively impacted. The plan will clearly state the vibration thresholds and trigger levels for the monitor boxes. The plan will also include corresponding actions and contingencies if vibration thresholds are reached. PHASE 3: Vibration Monitoring Task 3a. — Demolition Vibration Monitoring Isaiah Stueber, EIT will head the demolition monitoring. We have assumed 2 monitor boxes for a duration of 2 months each. If work is to take longer or more boxes are needed, WSB's expenses will increase. This vibration monitoring will assist in limiting or minimizing damage to the structures during demolition. The vibration monitoring will include trigger level vibration thresholds that will be electronically recorded and automatically send to the Contractor and Engineer if any thresholds are exceeded. If trigger thresholds are exceeded, work will stop until the vibrations are understood and the demolition activity changes. Task 3b. — Construction Vibration Monitoring Isaiah Stueber, EIT will head the construction monitoring. We have assumed 2 monitor boxes for a duration of 6 months each. If work is to take longer or more boxes are needed, WSB's expenses will increase. This vibration monitoring will assist in limiting or minimizing damage to the structures during Page 3 construction. The vibration monitoring will include trigger level vibration thresholds that will be electronically recorded and automatically send to the Contractor and Engineer if any thresholds are exceeded. If trigger thresholds are exceeded, work will stop until the vibrations are understood and the construction activity changes. PHASE 4: Review of Developer Plans Task 4a. — Demolition Plan Review Carl Osberg, PE and Sam Konieczny, PE, SE will review the contractor's demolition plan prior to demolition. The plans will be reviewed to ensure the design is code compliant, meets vibration threshold needs and minimizes impacts to existing infrastructure and services. Task 4b. — Construction Plan Review Carl Osberg, PE and Sam Konieczny, PE, SE will review the contractor's construction plan prior to construction. The plans will be reviewed to ensure the design is code compliant, meets vibration threshold needs and minimizes impacts to existing infrastructure and services. Page 4 PROPOSEDFEE We understand this project cost is based on an hourly rate not to exceed. No work in excess of the Total Project Fee will be completed without prior written approval from the client. We propose to complete this project for the below proposed fee below: Total Project Fee: .............................................................................. $42,048 PHASE 2: Vibration Monitoring Plan PHASE 1: Precondition Survey Task Lead Task Bill Rate Lead Hours Bill Rate Total Task 1a — External Building Survey Carl Osber , PE 12 $206 $2,472 Task 1a — External Building Survey Isaiah Stueber, EIT 14 $97 $1,358 Task 1 b — Interior Building Survey Carl Osber , PE 12 $206 $2,472 Task 1b— Interior Building Survey Isaiah Stueber, EIT 14 $97 $1,358 Expenses (Mileage) $200 Total $7,660 PHASE 2: Vibration Monitoring Plan Task Lead Hours Bill Rate Total Task 2a — Demolition Monitoring Plan Carl Osber , PE 8 $206 $1,648 Task 2a — Demolition Monitoring Plan Isaiah Stueber, EIT 8 $97 $776 Task 2b — Construction Monitoring Plan Carl Osber , PE 8 $206 $1,648 Task 2a — Construction Monitoring Plan Isaiah Stueber, EIT 8 1 $97 $776 Total $4,848 PHASE 3a: Demolition Vibration Monitoring Vibration Monitoring for Building Demo 2 X 2 month @ $1,000/month = $4,000 1 Trip to Set-up Equipment = 1 Trip x $100 = $100 1 Trip for Intermediate Set-up of Equipment = 1 Trip x $100 = $100 1 Trip to Disassemble Equipment = 1 Trip x $100 = $100 Set-up Hours = 16 Hours @ $125/hr = $2,000 Phase 3a Total for Vibration Monitoring = $6,300 PHASE 3b: Construction Vibration Monitoring Vibration Monitoring for Building Demo 2 X 6 month @ $1,000/month = $12,000 1 Trip to Set-up Equipment = 1 Trip x $100 = $100 1 Trip for Intermediate Set-up of Equipment = 1 Trip x $100 = $100 1 Trip to Disassemble Equipment = 1 Trip x $100 = $100 Set-up Hours = 24 Hours @ $125/hr = $3,000 Phase 3 Total for Vibration Monitoring = $15,300 Page 5 PHASE 4: Review of Developer Plans Task Lead Hours Bill Rate Total Task 4a — Demolition Plan Review Carl Osberg 8 $206 $1,648 Task 4a — Demolition Plan Review Sam Konieczny 12 $145 $1,740 Task 4a — Demolition Plan Review Isaiah Stueber 6 $97 $582 Task 4b — Construction Plan Review Carl Osberg 8 $206 $1,648 Task 4b — Construction Plan Review Sam Konieczny 12 $145 $1,740 Task 4b — Construction Plan Review Isaiah Stueber 6 $97 $582 Total $7,940 This letter represents our understanding of the project scope. If you agree, please sign on the space provided and return one original signed copy to us for our records. We will start immediately upon receipt of the signed agreement. If there are any questions, please contact me at: cosbergCcDwsbeng.com or 612-219-3524 Sincerely, OJ 1k Carl Osberg, P.E. - Project Manager ACCEPTED: Client By: Date: wsb March 30, 2022 Jim Thares Economic Development Manager - City of Monticello 505 Walnut Street, Suite 1 Monticello, MN 55362 Re: Scope of Work and Cost — Phase I ESA & Structural Assessment Proposed Block 52 Redevelopment - City Owned Parcels Monticello, Minnesota Dear Mr. Thares: 2 Thank you for the opportunity to work with you on this project. Outlined below is a scope of work 0 and cost estimate to perform a Phase I Environmental Site Assessment (ESA) and Structural Z Assessment for the Block 52 Redevelopment Project located in Monticello, Minnesota. The Block LU 52 Redevelopment is in downtown Monticello and includes the below addresses and Wright U) County Parcels (Property): 0 Property Addresses 0 co0 121 West Broadway Street, 113 West Broadway Street, 107 West Broadway Street, 101 West Broadway Street, 103 Pine Street, and 112 West River Street M Property Parcels 0 155010052031,155010052060,155010052070,155010052071,155010052090, 155010052101,155010052102, 155010052110, 155010052120, and 155010052131 a WSB understands that the Property contains six commercial buildings owned by the City of Z Monticello Economic Development Authority (City). The Property buildings were constructed from approximately 1910-1940 and several of the buildings share existing walls (i.e., common walls). Currently, the structural details associated with the Property buildings are unknown, as J well as potential environmental liabilities associated with the Property. To assist with future W demolition and redevelopment planning of the Property, the following tasks will be performed as Z part of this scope of work: 5 — Task 1 — Phase I ESA 0 0 co The Phase I ESA will be performed in general compliance with the ASTM E1527-13 Standard LU Practice for Environmental Site Assessments. The following items will be performed as part of U) the Phase I ESA: U) 0 Historical Records Review Z) o Federal and state regulatory database information for the Property will be W obtained from a commercial regulatory vendor to evaluate for potential 'a recognized environmental conditions (RECs). a o Based on available information, the following two (2) MPCA regulatory file W reviews will be required: ■ LS0019812 (southeast adjacent site) — Former Phillips 66 Gas Station, 100 Broadway Street East ■ PB4857 (southeast adjacent site) — Former Phillips 66 Gas Station, 100 Broadway Street East Mr. Jim Thares March 30, 2022 Page 2 • Interviews o Property representatives will be contacted (via phone or in person) regarding past and current Property use activities. • Site Reconnaissance o Direct visual inspection of the Property and adjoining sites will be completed. o All Property areas, including the interior of buildings and storage structures, will be accessed as part of the site reconnaissance. The adjoining sites will be viewed from the public right-of-way areas. Reporting o The results of the Phase I ESA will be summarized in a final documentation report in accordance with the ASTM E1527-13. o This task does not include those items considered non -scope by ASTM Standard E1527-13 including asbestos, lead-based paint, radon, lead in drinking water, wetlands, regulatory compliance, cultural/historic resources, industrial hygiene, indoor air quality, biological agents, or mold sampling and analysis. Task 2 — Structural Assessment WSB led by Carl Osberg, PE will structurally evaluate the existing Property structures to be demolished and the adjoining building to remain. He will be supported by Sam Konieczny, PE, SE. Both Carl and Sam have recent experience in evaluating buildings and disconnecting adjoining building for demolition in Hopkins and Melrose, MN. We understand the developer will provide demolition plans. Thus, Carl and Sam will provide the following to the City to ensure the plans are properly developed: • Site Visit and Existing Conditions Report o Field measure, photograph and evaluate the existing buildings, utilities, lots, etc. o Closely evaluate the building connections to the adjoining building that are to remain o Summarize in an existing conditions report • Structural Analysis o Perform structural analysis where needed using STADD modeling and hand calculations Demolition Evaluation Report o State structural integrity and potential impacts of demolition o Address additional constraints such as utility connection o Submit a Demolition Evaluation Report summarizing the existing condition for each structure that outlines the building condition, age, potential impacts of demolition, potential costs, and other considerations (utilities, traffic impacts) o Deliver necessary forms for each structure o Include sketches and commentary for demolition procedures including: ■ Building at 121 West Broadway (common roof and wall) with need special details for removal — cutting, shoring, etc. ■ Notes and descriptions on mitigating public impacts — sidewalk closures, utility relocations, lane closures, access points ■ ROW lines and construction limits and mitigation strategies ■ Vibration monitoring plan — develop vibration limits and requirements building disconnect to 121 West Broadway • dictate monitoring and survey of other surrounding structures as needed Mr. Jim Thares March 30, 2022 Page 3 • prescribe hours and limits of demolition activities o Develop a cost estimate for structural demolition • Other Potential Tasks - Not Included in Fee o Official Preconstruction Surveys and Reports of Buildings in project area to remain o Field Vibration Monitoring during demolition o Demolition Inspection and Oversite Total Cost and Schedule The cost to perform the above described Phase I ESA and Structural Assessment is a lump sum of $29,800. The table below presents the estimated schedule and cost breakdown for each task presented in this scope. Task Estimated Schedule Cost 1) Phase I ESA 30-45 Days $5,300 2) Structural Assessment and Reports 45-60 Days $24,500 Total $29,800 Acceptance This letter represents our understanding of the proposed scope of services. If this proposal is found acceptable, we will prepare a Professional Services Agreement for the work described above. If you have any questions about this proposal, please feel free to call Ryan Spencer at 612-723-3644 or email at rspencer@wsbeng.com. This fee proposal is valid for 90 days from the creation date. WSB may reissue a revised proposal upon request if the indicated period has lapsed. We appreciate the opportunity of being considered for this project and we look forward to working with you. Sincerely, WSB 94vn� Ryan Spencer, CHMM Director of EIR (�J /A Carl Oberg, PE Director of Structures I hereby authorize the above scope of work, schedule, and cost. Name (Print) Signature Date Enclosures WSB 2022 Rate Schedule 2022 Rate Schedule PRINCIPAL I ASSOCIATE $162-$206 SR. PROJECT MANAGER I SR. PROJECT ENGINEER $162-$206 PROJECT MANAGER $143-$159 PROJECT ENGINEER I GRADUATE ENGINEER $97-$158 ENGINEERING TECHNICIAN I ENGINEERING SPECIALIST $62-$154 LANDSCAPE ARCHITECT I SR. LANDSCAPE ARCHITECT $73-$154 ENVIRONMENTAL SCIENTIST I SR. ENVIRONMENTAL SCIENTIST $60-$151 PLANNER I SR. PLANNER $75-$159 GIS SPECIALIST I SR. GIS SPECIALIST $72-$159 CONSTRUCTION OBSERVER $98-$128 SURVEY One -Person Crew $159 Two -Person Crew $207 OFFICE TECHNICIAN $56-$97 ws b Costs associated with word processing, cell phones, reproduction of common correspondence, and mailing are included in the above hourly rates. Vehicle mileage is included in our billing rates [excluding geotechnical and construction materials testing (CMT) service rates]. Mileage can be charged separately, if specifically outlined by contract. I Reimbursable expenses include costs associated with plan, specification, and report reproduction; permit fees; delivery costs; etc. I Multiple rates illustrate the varying levels of experience within each category. I Rate Schedule is adjusted annually. WSBENG.COM EDA Agenda: 06/08/22 11. Economic Development Director's Report (JT) A. Prospect List Update: Please see the updated Prospect List as Exhibit A. Date of Contact L/12/2016 L/17/2016 /22/2017 /22/2018 1/29/2018 12/14/2018 3/28/2019 5/9/2019 8/16/2019 9/19/2019 1/20/2020 8/27/2020 12/23/2020 11/5/2020 06/03/2022 Building -Facility Retained lobs New lobs Total Investment Project Status 65,000 sq. ft. 0 55- $2,500,000 Active Search 100 58,000 sq. ft. 205 60 $10,831,000 Almost Done 70,000 sq. ft. 0 49 $5,480,000 On Hold 20,000 sq. ft. +/- 42 10 to $4,500,000 On Hold 20 12,000 sq. ft. 10 $1,200,000 Concept Stage Project Comet PROSPECT LIST Company Name Business Category Project Description MN DEED Prospect Metal Mfg. Exist Facility + Equip Project Armstrong Precision Machining New Facility Constr. + Equip UMC Co -Working Space Project #6580 Metal Mfg. New Facility Constr. Karlsburger Foods Food Prod uc Facilty Expansion Project Blitzen Precision Machining Exist Bldg or New Const. 06/03/2022 Building -Facility Retained lobs New lobs Total Investment Project Status 65,000 sq. ft. 0 55- $2,500,000 Active Search 100 58,000 sq. ft. 205 60 $10,831,000 Almost Done 70,000 sq. ft. 0 49 $5,480,000 On Hold 20,000 sq. ft. +/- 42 10 to $4,500,000 On Hold 20 12,000 sq. ft. 10 $1,200,000 Concept Stage Project Comet Commercial Bus New Const. 1,700 sq. ft. +/- 7 $700,000 Active Search Project Nutt Co -Working Space Existing Building ? ? ? ? Concept Stage Project FSJP Light Mfg -Res. Lab New Construction 20,000 sq. ft. 0 20+/- $1,400,000 Active Search Project Jaguar Office New Construction 22,000 sq. ft. 22 4 $2,700,000 Active Search Project Kata Service New Construction 22,000 to 35,000 sq. 0 25 $7,900,000 Concept Stage ft. Project Panda v3 Service -Child Care New Construction 10,500 sq. ft. 0 21 $4,100,000 Active Search Project Nuss Combo Service -sale New Construction 30,000 sq. ft. 0 20 to $3,500,000 Almost Done 30 Project TO Industrial Existing or New Construction 10,000 to 15,000 sq. 0 5 to 7 $800,000 Concept Stage ft. Project Flower Office Existing 7,000-8,000 sq. ft. 0 12 $750,000 Concept Stage 2/16/2021 3/19/2021 2/28/2022 6/16/2021 6/30/2021 7/29/2021 10/28/2021 Project Cold Industrial -Warehouse -Di New Construction 80,000 sq. ft. 0 21 $12,000,000 Concept Stage stri Project Orion Warehouse-Distributi New Construction 832,500 sq. ft. 0 500 $125,000,000 Active Search on Project Emma II Light Ind -Assembly New Construction 20,000 sq. ff. 0 4 $1,350,000 Active Search Project UBAA Child Care Services New Construction or Exist 5,000 sq. ft. 0 14 to 19 $2,000,000 Act Search Project Ecosphere Industrial Tech Mfg. New Construction 1,000,000 sq. ft. 0 1122 $85,000,000 Act Search Project BA710 Lt Assem-Distribute New Construction 6,500 to 7,000 sq. ft 0 10 $650,000 Active Search Project Stallion Technology Service New Construction 42,000 sq. ft. 40 $3,600,000 Active Search 2/7/2022 Project Shepherd Lt Assembly Distribution New Construction 75,000 sq. ft. 75 $10,500,000 Active Search III 4/28/2022 Project Cougar Precision Machining -Mfg. New Construction 35,000 to 45,000 sq. ft. 38 $4,700,000 Active Search Contacts: M =11 YTD = 13 EDAM Summer Conference 2022 Event Schedule Wed, Jun 01, 2022 4:30 PM Lodging checkin at Main Lodge 0 4:30 PM - 11:00 PM, Jun 1 Q Main Lodge 5:00 PM Registration 0 5:00 PM - 8:00 PM, Jun 1 ® Gull Lake Center Lobby ( President's Welcome Reception U 5:00 PM - 6:00 PM, Jun 1 V Gull Lake Ccntcr Lobby I 6:00 PM Dinner & Economic Development Table Topic Discussions (D 6:00 PM - 6:45 PM, Jun 1 4 Gull Lakc Ccntcr Ballroom Enjoy dinner and discussion! Attendees will choose their dinner table based on the topic of their choice (first- come, first-served) and have a chance to make new connections and learn from each other. 6:45 PM President's Award Presentation a 6:45 PM - 7:00 PM, Jun 1 Q Gull Lake Center Ballroom 7:00 PM f Join us to honor this year's President's Award recipient! This award is chosen each year by the EDAM president, jhonoringa member who displays outstanding leadership, contribution, and dedication to economic development in I Minncsota. i EDAM Bingo 0 7:00 PM - 8:00 PM, Jun 1 V Gull Lake Center Ballroom Join us for casual competition and the chance to win prizes! Thu, Jun 02, 2022 6:45 AM 5k Fun Run 0 6:45 AM - 7:45 AM, Jun 2 Meet in parking lot of Grand View's Club House Suites Reservation Building Join other attendees for a fun 5K run! All abilities are welcome. Meet in the parking lot of Grand View's Club House Suites Reservation Building. Please walk to the start so as not to use up parking spaces for Grand View employees. Meet at 6:45 am; run starts at 7:00 am. The event will take place rain or shine unless lightning is predicted. The run/walk will take place across the road from Grand View, on the north side of Highway 77. It is a scenic out j and back course through the woods on Lower Roy Lake Road. It is mostly flat with a few rolling hills at the j beginning and end. There will be no official timing, however prizes will be given out for the first place male and i female. While it is not a busy road, there will be some cars due to the time of day; please run/walk facing traffic r and stay on the side of the road for your own safety. 7:00 AM i Breakfast 07:00 AM- 8:15 AM, Jun 2 V Heritage Room (in Main Lodge) i 7:30 AM Registration j 0 7:30 AM - 4:00 PM, Jun 2 V Gull Lake Center Lobby 8:00 AM i Lodging checkin at Main Lodge 0 8:00 AM - 11:00 PM, Jun 2 { 9 Main Lodge 8:15 AM ! Welcome by EDAM President 0 8:15 AM - 8:30 AM, Jun 2 V Gull Lake Center Ballroom I 8:30 AM I Crossroads: The Intersection of Supply Chain Logistics and Site Selection 0 8:30 AM - 9:30 AM, Jun 2 i V Gull Lake Center Ballroom r 1.0 AICP Credit Join us for a roundtable conversation with experts in economic development, supply chain logistics and site selection to discuss the changing environment and its impact on decision-making regarding the location of new facilities. This session will guide economic developers to realize how disruptions within the supply chain may impact local businesses and what new considerations site selectors may be considering as a result of these disruptions. The discussion will provide a clear understanding of the strengths and weaknesses a community may possess within the changing economic development landscape, and potential steps they can take to better position themselves within the eyes of site selectors. 'r� Speakers 46 Tom Denaway Director Baker Tilly Municipal Advisors 41 Thane Hutcheson Director Baker Tilly 4DIan Vincent Senior Business Developer APEX 4DKate Ferguson Director of Trade & Business Developement Duluth Seaway Port Authority I 9:30 AM i Break with Exhibitors i 0 9:30 AM - 9:45 AM, Jun 2 9 Gull Lake Center Lobby 9:45 AM 10:45 AM 11:00 AM Child Care is an Essential Economic Development Tool U 9:45 AM - 10:45 AM, Jun 2 9 Gull Lake Center Ballroom 1.0 AICP Credit Economic development is evolving to include child care, adult day care, workforce development, and similar programs as part of its basic strategies. The session will discuss the importance of adequate child care with respect to economic development programs. East Grand Forks is working with First Children's Finance through its Rural Child Care Innovation Program to prepare and implement a strategy to increase the quantity of affordable child care. Join us to learn how child care is an economic development tool. Minnesota Child Care Licensing Model Listening Sessions Provide Minnesota Child Care Licensing Models Feedback '* Speakers Jessica Beyer Business Development Manager First Children's Finance Paul Gorte City of East Grand Forks Break with -Exhibitors----- 0 xhibitorsO 10:45 AM - 11:00 AM, Jun 2 9 Gull Lake Center Lobby i 1 Filling Empty Buildings Downtown j O 11:00 AM - 12:00 PM, Jun 2 9 Gull Lake Center Ballroom 1.0 AICP Credit Brown will share dozens of ideas to inspire action, fill those buildings with businesses and boost the prosperity of your town. Expect to hear more about shared spaces, pop -ups, and even what to do with those buildings that are in bad shape. ' "How do you start? And how do you get reluctant building owners to work with you? You'll get real-world examples of how small communities have turned empty buildings into busy places. I'll talk about the best place to look for local opportunities in your town," said Brown. This presentation is designed to show your community new ways to get things done. Brown will cover some common barriers and how to breach them, and she'll share special strategies for getting past the automatic "no" from those impossible property owners. 1:1 Speaker 40Deb Brown Co -Founder - - SaveYour.Town i 12:00 PM Lunch & Break with Exhibitors O 12:00 PM - 1:00 PM, Jun 2 V Gull Lake Center Ballroom j I fill 1:00 PM Economic Success Through Housing: A Necessary Piece of the Economic I Development Puzzle O 1:00 PM - 2:00 PM, Jun 2 V Lake Itasca Room 1.0 AICP Credit j Southwest Minnesota Housing Partnership's work in Greater Minnesota over the last 30 years has demonstrated that housing needs to be included in local economic development initiatives. Only through partnerships with cities, counties, EDAs, and other local entities are many of the projects possible. This session explores the importance for local entities to begin looking at housing as an economic development tool and what can happen when they commit to improving their local housing circumstances. The presenters will explore case studies from successful projects that they've been a part of, as well as provide examples of the types of partnerships that often work in rural settings and ways cities, counties, EDAs, etc. can begin addressing economic development through thoughtful housing policies and projects. i 1 Speakers Chad Adams Chief Executive Officer Southwest Minnesota Housing Partnership Jasmine Frias Real Estate & Community Development Officer Southwest Minnesota Housing Partnership j Building Back Better in Northeast Minnesota: The Importance of Regional Strategy O 1:00 PM - 2:00 PM, Jun 2 ! Q Gull Lake Center Ballroom j i 1.0 AICP Credit A 13 -member coalition in northeast Minnesota submitted a Build Back Better Regional Challenge (BBBRC) grant to the federal Economic Development Administration for an area spanning Itasca, Lake, Cook, and northern St. Louis counties. This region includes three communities (Cohasset, Hoyt Lakes, Schroeder) that are or were home to coal-fired power plants undergoing energy transitions, making them eligible for the over $100 million j dedicated BBBRC funding for coal communities. This cluster anchors its transformative efforts in the I communities most affected by the coal plant closures while providing the necessary background research and I infrastructure around them to ensure they have the necessary resources for growth. The group's vision was to j develop a prosperous 21 st century rural economy through the creation of a digital ecosystem that re -envisions regional industries and ignites innovative, equitable entrepreneurship. The northeast Minnesota application proved the value of extensive planning and framework development in the region over the previous decade and j marshaled the resources of a full spectrum of economic development partners, showing just how effective these 1 coalitions can be. 2:00 PM 2:15 PM V Speakers Arik Forsman 10 Regional Development Lead Minnesota Power Ridlon isWhitney Community Development Representative Department of Iron Range Resources & Rehabilitation Schuettler 4tKarl The Northspan Group, Inc. Break with Exhibitors 02:00PM-2:15 PM, Jun 2 Q Gull Lake Center Lobby It Takes a Village! 0 2:15 PM - 3:15 PM, Jun 2 V Gull Lake Center Ballroom 1.0 AICP Credit i In early 2020, Northspan embarked on an effort to explore what came to be known as Welcoming Community programming for northeast Minnesota. Northspan recognized that the region had typically not engaged in difficult conversations around topics related to diversity, equity, and inclusion (DEI). Its staff also recognized that any ' such effort required the guidance of a wide array of stakeholders and partners working in collaboration and mutual understanding. Northspan undertook considerable groundwork to determine the feasibility of welcoming community work. It conducted a survey of potential partners to determine interest and buy -in to the concept, conducted research on the potential benefits and pitfalls of such work, and worked with other regions in Minnesota that have undertaken similar efforts. These background investigations revealed both a strong desire to address these topics and a clear empirical case that a more welcoming community could be a source of growth for the regional population and economy. It could also create opportunities for cultural exchange, greater understanding, and new and innovative ideas that support communities as they adapt to new challenges. The Intelligent Communities Framework (ICF), a concept introduced regionally by the Blandin Foundation, provided additional framing by underscoring the importance of welcoming community work in an increasingly digital economy and attracting a knowledge workforce. This session includes a panel that will discuss how northeast Minnesota Welcoming Community programming directly relates to economic and workforce development across northeast Minnesota, how the programming started, what is currently underway, and what the hopes are for the future. T:1 Speakers i Elissa Hansen President & CEO The Northspan Group Inc. i Ali Bilden Camps Northspan Group Amber Lewis Fellow Lead for America Advancing Racial Equity Through Transformational Economic Development 3:15 PM 3:30 PM 02:15PM-3:15PM, Jun 2 V Lake Itasca Room 1.0 AICP Credit The City of Minneapolis has some of the most severe racial inequities in the country between Black and white residents. These inequities are the result of systematic racism enacted through policies that were designed to harm and exclude Black residents, particularly American Descendants of Slavery (ADDS), from economic opportunity including economic wealth building through residential and commercial property ownership, access to capital, and by lack of public and private investment in these communities. In North Minneapolis, these policies have directly and disproportionately impacted ADOS residents. In this session, Jason Brisson from the City of Minneapolis will discuss some of the barriers that continue to impede investment in distressed communities and how the City's Commercial Property Development Fund has proven successful in overcoming some of them, focusing on the redevelopment of 2618 Lowry Avenue in North Minneapolis. Chris Webley of NEW RULES, the project's owner and developer, will talk about overcoming the project's challenges and how the development will create pathways to entrepreneurship and a welcoming space for Northside residents. Since many of the economic barriers to redeveloping distressed neighborhoods overlap with the challenges in rural and suburban markets, most economic developers will find this session applicable to development in their own community. i4 Speakers Jason Brisson City of Minneapolis CPED Chris Webley Owner & Developer NEW RULES j Break with Exhibitors j 0 3:15 PM - 3:30 PM, Jun 2 V Gull Lake Center Lobby i Breaking Down Language Barriers 0 3:30 PM - 4:30 PM, Jun 2 O Lake Itasca Room 1.0 AICP Credit As our communities welcome new immigrants and refugees, we have an obligation to ensure they feel welcome and understand information presented to them in an equitable and inclusive manner. Understanding that not all new immigrants and refugees will understand English or be able to read their native language, it is important to present information and news in an oral fashion using native speakers. Learn how a community came together to create an education -based plan that trains bilingual speakers to orally present news and information to an audience based on their native language. '* Speaker w Michelle Marotzke _ Economic Development Representative Mid -Minnesota Development Commission Specialized Succession Planning for Rural Business 0 3:30 PM - 4:30 PM, Jun 2 9 Gull Lake Center Ballroom 1.0 AICP Credit i Join us to learn why succession planning should be acommunity-minded effort in rural communities and how developing and executing a direct plan for Makotah Veterinary Center in Blue Earth, MN allowed the clinic's owner, Dr. Bogan, to finally retire without closing the clinic doors after his practice operated for 48 years; and how this approach can be a replicable model for other businesses. I � j'lc� Speaker I i 0} Amy Schaefer ,, Community & Economic Development Associates (CEDA) i I I i 4:30 PM ! Break (on your own) 0 4:30 PM - 6:00 PM, Jun 2 6:00 PM I Networking Social & Dinner 0 6:00 PM - 8:00 PM, Jun 2 j V Gull Lake Center Front Lawn Join us on the lawn in front of the Gull Lake Center for al fresco refreshments and lawn games! Enjoy a wide variety of heavy appetizers and casual dinner selections. In the case of inclement weather the Thursday evening social will take place inside the Gull Lake Center-. Fri, Jun 03, 2022 7:00 AM Breakfast i0 7:00 AM - 8:30 AM, Jun 3 G Heritage Room (in Main Lodge) 3 8:00 AM % Registration i 0 8:00 AM - 12:00 PM, Jun 3 V Gull Lake Center Lobby f i Lodging checkin at Main Lodge 0 8:00 AM - 11:00 PM, Jun 3 V Main Lodge 8:30 AM Positioning your Community to Win the Economic Development Deal 0 8:30 AM - 9:30 AM, Jun 3 i V Gull Lake Center Ballroom 1.0 AICP Credit Economic development professionals in public finance, economic development and municipal leadership will engage in an interactive panel discussion on how to position communities to be competitive in the evolving economic development landscape. Economic development and redevelopment project decisions are being driven more and more by a combined approach of data and the desire for employees and employers to locate in communities that have been built as destinations where people want to live, work and play. A local Minnesota economic development director and/or elected official will join Baker Tilly's specialists on this panel to share experiences and advice on how communities can prepare and lead their community and region forward for their next project opportunities. The discussion will cover local incentives, local policies and economic development strategy perspective on quantitative and qualitative characteristics of communities with successful economic development practices and initiatives. 9:30 AM 9:45 AM � Speakers Matt Eckerle Baker Tilly Mikaela Huot Baker Tilly Jolena Presti Managing Director Baker Tilly Nate Kabat Community Development Director City of Chaska - --- ---------- - j Break with Exhibitors 1 0 9:30 AM - 9:45 AM, Jun 3 Gull Lake Center Lobby ---- - ------ State of the Minnesota Economy 0 9:45 AM - 10:45 AM, Jun 3 9 Gull Lake Center Ballroom MAIN 1.0 AICP Credit How is the Minnesota economy faring? How do we know? Using a variety of economic data and ongoing surveys by the Minneapolis Fed, Ron will discuss current conditions among firms, workers and the broader Minnesota economy, with special emphasis on the role of labor force on economic growth going forward. Using an interactive survey, Ron will also gauge attendees' sentiment regarding recent business activity, hiring demand, labor availability, wage trends, and outlook in their communities. V* Speaker Ron Wirtz Regional Outreach Director 3 Federal Reserve Bank of Minneapolis i 10:45 AM Break with Exhibitors 0 10:45 AM - 11:00 AM, Jun 3 9 Gull Lake Center Lobby 11:00 AM Update from DEED 0 11:00 AM - 11:45 AM, Jun 3 9 Gull Lake Center Ballroom . IML V* Speakers Kevin McKinnon Deputy Commissioner of Economic Development Minnesota DEED Meredith Udoibok Executive Director, Office of Community Finance i Minnesota DEED Kristin Lukes Director, Brownfields & Redevelopment Minnesota DEED 11:45 AM Legislative Update 0 11:45 AM - 12:00 PM, Jun 3 9 Gull Lake Center Ballroom Speaker Scott Marquardt Senior Vice President Southwest Initiative Foundation 12:00 PM j Prize Drawing & Adjournment 0 12:00 PM - 12:15 PM, Jun 3 9 Gull Lake Center Ballroom 2022 EDAM Summer Conference Power Point Slide Presentations 1. Federal Reserve Bank State of Minnesota Econom 2. Child Care Essentials 3. Economic Success Through Housing — A Necessary Piece of the Economic Development Puzzle 4. It Takes A Village NE Minnesota Economic Development Approach