City Council Agenda Packet 03-13-2000
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AGENDA
REGULAR MEETING - MONTICELLO CITY COUNCIL
Monday, March 13,2000 - 7 p.m.
Mayor:
Roger Belsaas
Council Members:
Roger Carlson, Clint Herbst, Brian Stumpf and Bruce Thielen
1. Call to Order
2. Approve minutes of February 28, 2000 regular council meeting.
3. Consideration of adding items to the agenda.
4. Citizen comments/petitions, request and complaints.
5. Consent agenda.
A. Consideration of resolution authorizing the issuance of a charitable gmnbling
license for Ducks Unlimited Bm1quet.
B. Consideration of resolution authorizing issuance of a charitahle gambling license
for Monticello Youth Hockey.
C. This item removed from the agenda. Rescheduled for 3/27/00. (Klein Farms 6th)
D.
Consideration to approve the subordination agrcement associated with the contract
for private development betwecn Twin City Die Castings, the HRA and the City of
Monticello.
E. Consideration to approve a estoppel certificate associated with the contract for
private development hetween Twin City Die Castings, the HRA and the City of
Monticello.
F. Consideration of issuing a gamhling license to Monticello Lions Club to conduct
gmnhling at Monticello Country Club.
G. Consideration of adoption of amendments to CityiNationalGuard agreement
governing development and operation of the Monticello Community Center.
6. Consideration of items removed from the consent agenda for discussion.
7. Consideration of authorization to prepare plans and specifications for the pedestrian overpass
and pathway project (Project 98-02C)
8.
Consideration of a requcst for a conditional use permit to allow open sales as an
accessory use in the B-4, Regional Business District. Applicm1t: Skippers Pools and Spas.
9. Consideration of an amendment to the zoning map to rezone a parcel from I-lA,
Light Industrial to R-3, Multiple Fmnily Residential. Applicant: Joseph & Mamie LaFromhoise.
Agenda
Monticello City Council
March 13,2000
. Page Two
10. Consideration of payment of bills for March.
11. Adjourn.
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MINUTES
REGULAR MEETING - MONTICELLO CITY COtJNCIL
Monday, February 28, 2000 - 7 p.m.
Members Present:
Roger Belsaas, Roger Carlson, Clint Herbst, Brian Stumpf and
Brucc 'I'hielen.
Members Absent:
None
Mayor Belsaas called the meeting to order at 7 p.m. and declared a quorum present.
2. Approve minutes of regular council meeting of Februarv 14.2000.
CLINT HERBST MOVED TO APPROVE THE MINUrES OF THE REGULAR MEETING
OF FEBRUARY 14,2000 WITH THE CORRECTION TO PAGE 5, ITEM #11, WEST
BRIDGE PARK LANDSCAPING STRUCTURE SHOULD BE UJENTIFI ED AS A
KEYSTONE TERRACED WALL. BRUCE THIELEN SECONDED THE MOTION.
MOTION CARRIED WITH BRIAN STUMPF ABSTAINING.
3.
Consideration of adding items to the agenda.
Bruce Thielen requested that staff salaries, vacation and stalf structuring for thc Community
Center he added to the agenda.
3A. Summarv of closed meetin2: held on Februarv 17.2000 at 5 p.m.
Mayor Belsaas stated that the Council met in a closed session on February 1 Jlh to discuss
the litigation involving the Gold Nugget Development, City of Monticello and the MOAA
Board. The City will pursue obtaining additional insurance coverage for the City and the
MOAA Board. City Administrator, Rick Wolfsteller, indicated that he had spoken to Franklin
Denn, Township Chair and a representative on the MOAA Board and Mr. Denn felt the
question of obtaining the insurance coverage should be discussed by the MOAA Board at their
March I st meeting.
4. Citizens comments/petitions. requests, and complaints.
None
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Council Minutes - 2/28/00
5.
Consent Agenda
A. Consideration of waiving statutory liability limits for City insurance renewals.
Recommendation: Move that the City of Monticello does not waive the monetary
limits on tort liability established by Minnesota Statute 466.04.
B. Consideration to review and accept EDA year end financial statement, activity report
and 2000 proposed budget. Recommendation: Approve a motion to accept the EDA
Balance Sheet, Statement of Revenues, Expenditures and Changes in Fund Balance,
2000 Cash Flow Projections and the Annual Activity Reports as presented.
C. Consideration of approving modification to DMRF Guidelines. Recommendation:
Approve a motion to modify the DMRF Guidelines as recommended by the EDA.
D. Consideration of approving a joint resolution supporting annexation of Rolling Woods
property. Recommendation: Move to adopt ajoint resolution supporting annexation of
the Rolling Woods subdivision contingent upon the developer requesting detachment
from the City in the event the annexed area has public improvements on less than 50(1<)
of the annexed area at the end of the three years.
E.
Consideration of approving plans and specifications for ballfield lighting and
authorizing advertisement for bids. Recommendation: Approve the plans and
specifications and authorize advertisement for proposals for City Project No. 2000-01 C,
Lighting of Two (2) Softball Fields.
BRUCE THIELEN MOVED TO APPROVE ITEMS 5A-5E ON TI--IE CONSENT AGENDA
AS PRESEN'fED. BRIAN STUMPF SECONDED THE MOTION. MO'J'ION CARRIED
UNANIMOUSL Y.
6. Consideration of items removed from the consent ae:enda for discussion.
None
7.
Public "carinI! _ Chelsea Road West from Sandbere: Road to 90th Street and consideration
of authorizine: preparation of plans and specifications.
City Engineer, Bret Weiss made a presentation on the proposed improvements to Chelsea Road
West and the improvements for Phase] of the Groveland Subdivision. The engineer reviewed
the proposed street improvements, storm sewer construction and the improvements to two storm
water ponds identified as the Olson pond and the dentist office pond. He also covered proposed
sewer and watermain construction ineluding construction of some trunk facilities which
although included in the feasibility report would not be constructed until later. Bret Weiss
reviewed each phase of the project: 1) Chelsea Road West (Sandberg Road to Street A);
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Council Minutes - 2/28/00
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2) Chelsea Road West (Street A to Street C) and 3) the residential streets within the Groveland
development. 'fhe estimated cost for the improvement is $3,371,521.44.
Hret Weiss stated that working out issues related to the right-of-way was one of the difficulties
encountered on this project. It is proposed that the $89,000 the City incurred for right-of-way
would be included as part of the project costs and assessed to the property owners
proportionally with the developer of the Groveland property contributing $18,000. Bret Weiss
explained the City's current storm sewer policy, the proposed assessment for developed
properties and the trunk charges that would be collected when vacant properties developed.
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Bret Weiss addressed the issue raised by Milton Olson about the expansion of the pond by their
property. Mr. Olson was concerned about the effect the pond expansion would have on the
ground water level. Utility lines were installed in this area at what was then l' above the ground
water table. If the ground water level changes because of expansion to the pond there
may be the possibility that the utility lines will be lower than the ground water table. lfthat is the
case then dewatering of the area would have to be done before any work could be done on the
utility lines. Bret Weiss stated that in his opinion this pond was not the only one driving the
ground water table. Most of the water coming into the pond will be surface water, not ground
water and will be outletted to another pond. Mr. Olson would like something in writing from the
City stating that they would provide assistance in pumping the water level down if he needed to
work on the utility lines. The Council indicated that while they were willing to assist the
property owner with dewatering, if necessary, they were reluctant to commit future Councils
to that obligation. Clint Herbst suggested that any dewatering costs could be assessed against
the benefitting properties that contribute runoff to that pond.
Bret Weiss also presented a preliminary assessment roll and briefly reviewed that. He
explained the time line for the project noting that if plans and specifications were ordered
they would be submitted to the Council at their first meeting in April.
Mayor Belsaas opened the public hearing. Milton Olson spoke and expressed his concerns
about the ponding area. He indicated that previously the ponding area had been dry at various
times. He felt that with the expansion of the pond, water would be standing there all the time.
For that reasein he felt it was necessary to request assistance from the City should the water
in that area become a problem, especially if he needed to work on the utility lines on his
property. While he noted that water was not a problem in the past, it was not a certainty that
would be the case in the future. Brian Stumpf indicated that he would like to see the City
commit to assist the property owner and then the City could always decide if they wanted to
assess the costs back. City Engineer, Bret Weiss will draft a letter to that effect.
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Warren Olson also questioned the left turn lane from TH 25 onto Chelsea Road and the
problem that exists with the short distance there was to get into the right lane before turning
onto Sandberg Road. He noted that as traffic increased this problem would be more noticeable.
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Council Minutes - 2/28/00
John Michaelis of Gould Brothers Chevrolet Co. and Dean Carlson of D &D Bus Service, Inc.
submitted a letter to be included as part of the hearing record that outlined their views on the
proposed project.
Jay Morrell questioned his proposed assessment for storm sewer. He questioned whether his
property runoff entered into the storm sewer area. Bret Weiss indicated that although he did
not have the storm water calculations with him, the map indicated that a portion of his property
did drain into this area and he was proposed to be assessed for the portion that does drain to this
area. Bret Weiss will check and verify the storm water calculations for this property.
Mayor Belsaas then closed the public hearing.
BRIAN STUMPF MOVED TO ADOPT THE RESOLUTION ORDERING PREP ARA nON
OF PLANS AND SPECIFICATIONS FOR THE CONSTRUCTION OF CHELSEA ROAD
WEST FROM SANDBERG ROAD TO 90TIl STREET AND THE IMPROVEMENTS FOR
PHASE I OF THE GROVELAND ADDITION CONTINGENT ON THE DEVELOPER
PROVIDING A DEPOSIT EQUAL TO THE COST OF PREPARING PLANS AND
SPECIFICATIONS WITH THE DEPOSIT TO BE REFUNDED TO THE DEVELOPER AT
SUCH TIME THAT THE DEVELOPMENT AGREEMENT IS APPROVED AND THE
PROJECT ORDERED. BRUCE THIELEN SECONDED THE MOTION. MOTION
CARRIED UNANIMOUSLY.
Discussion on Council meetine attendance.
Mayor Bclsaas noted that there was some question on attendance at the meetings which was
why this item was placed on the agenda. Bruce Thielen felt that it was important in order for
the Council to be effective that all members be present. Brian Stumpf indicated that he had
made it known to the City Administrator that he would not be present at the last meeting and
the special meeting. He had indicated an alternate time that he could make the special meeting
but the meeting was held on the original date. He stated that he had good attendance record
and it was just circumstances and not a change in availability that made him unable to attend
the previous meetings.
SA.
Personnel Issues.
The Personnel Committee consisting of Roger Belsaas, Bruce Thielen and Rick Wolfsteller
had met prior to the regular Council meeting and a number of items from the Personnel
Committee were being brought before the Council for consideration. The Personnel Committee
would like to see another salary survey done similar to the one that the League of Minnesota
Cities had done for the City some time ago. It was also suggested that the City look at placing
a cap on unused vacation and sick leave as there was concern about the amount of financial
liability the City had as a result of the unused vacation/sick leave. It was also the
recommendation of the Personnel Committee that the vacation time being increased to ten days
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Council Minutes - 2/28/00
f()[ years 0-5 of employment with 6-10 years being 15 days and one additional day for each
year from year lIon with a maximum of 22 days.
There was discussion whether these proposed changes would apply to union personnel. It was
noted that there was problem attracting applicants because of the vacation issue but there was
also concern about changing the union contract at this time.
BRUCE THIELEN MOVED '1'0 AUTtIORIZE CITY STAFF PREPARE A SALARY
SURVEY, MAKE A RECOMMENDATION TO THE COUNCIL ON A CAP FOR SICK
LEAVE AND VACATION AND CHANGE THE VACATION SCHEDULE AS FOLLOWS:
0-5 YEARS
6-1 0 YEARS
11+ YEARS
10 DAYS
15 DAYS
15 DAYS PLUS ONE ADDITIONAL DAY
FOR EACH YEAR WITH A MAXIMUM OF
22 DAYS
AND AUTHORIZE CITY ADMINISTRATOR AND PUBLIC WORKS DIRECTOR TO
NEGOTIATE VACATION SCHEDULES FOR UNION STAFF AS NECESSARY.
ROGER CARLSON SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY.
9.
Approve payment of bills for Februarv.
BRUCE TI HELEN MOVED TO APPROVE PAYMENT OF BILLS FOR FEBRUARY.
BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY.
The hours of operation for the Community Center was briefly discussed. Changes in the hours of
operation arc being proposed with the Community Center opening at 8 a.m. Monday-Friday, 9 a.m.
on Saturday and 11 a.m. on Sunday. The staffing was discussed and it was suggested that in order to
stail the building adequately there may need to be some modification to job descriptions and adding of a
part-time employee. There is the realization that until a pattern of use is determined, the staff will have
to be flexible in meeting the staffing needs for the facility.
10. Adjourn
CLINT HERBST MOVED TO ADJOURN AT 8 P.M. AND BRUCE THIELEN SECONDED TIlE
MOTION. MOTION CARRIED UNANIMOUSLY.
. Recording Secretary
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A.
Council Agenda ~ 3/13/00
Consideration of resolution authorizine: the issuance of a charitable gambling
license for the Ducks Unlimited Banauet. (R W)
REFERENCE AND BACKGROUND:
The Wright County Chapter of Ducks Unlimited will be holding their annual banquet on
Monday, May 8, 2000 at the Monticello Roller Rink. Ducks Unlimited will be applying to the
State Gambling Control Board for issuance of a gambling license to conduct a raffle. Before
a license can be issued by the State Gambling Control Board, a resolution needs to be passed by
the City either supporting or denying the applicant's request.
'fhe license for this event has been approved for the past several years. The City is not aware
of any problems with the license being issued for this event.
B. AL TERNA TIVE ACTIONS:
c.
1. Adopt a resolution authorizing the State Gambling control Board to issue a gambling
license.
STAFF RECOMMENDATION:
It is the recommendation of the City Administrator that the resolution be adopted.
D. SUPPORTING DATA:
. Copy of Application
. Copy of Resolution
'<H:,:,,:,I,;;I'b;~a;~~l*~,!l~~";':'q,i!~~~!~tj~H;"::":i':':
Organization Name Previous lawful gambling exemption number
\jc\i-s U c.."'c. -h.. Wn~ W-(OUh~ - <gbO \ '2 ...C\b -001
Street . City S ate Zip Code County
L.f7 ~ N\c.-f\ \\ "S-\--tV~\(OJt-. St-\V\ \c.~(<~ \ N\.N SS37b Wr", - W
Name of Chief Executive Officer of organization (CEO) Daytime Phone number of CEO
First Name Last Name
For Board Use Only
Fee Paid
Check #
Initals
Date Reed
LG220
Rev06/95
Minnesota Lawful Gambling
Application for Authorization for an
Exemption from Lawful Gambling License
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:~:i :1':;: :~::::.: '.'..:,H~::.;::- ;
":::':'::r,::HU:'i'
G \Qt2-~\er
reasurer
, Last Name
C'-l2) 497 - 3770
Daytime Phone Number of Treasurer
V- D t-f
.' ::<:::';!:~I .:~.<:',!'.:;i:\:;:'::;.:)::I\iT\~j\:::!i:::Y:n:ml1:!;;::tt,:, .,t;i!X~~:i:i( :" .,'. .
Type of NonifrOf;('q'rganizatiorr
. '::::i(,:'~:',:H)C '::.:-:)>" ',:,,":' ",',. " ".".
Fraternal
Veterans
D Religious
ttn Other nonprofit
Check the box that indicates the type of proof attached to this application
by your organization:
lCl1RS letter indicating income tax exempt status
Gertificate of good standing from the Minnesota Secretary
of State's office
DA charter showing you're an affiliate of a parent
nonprofit organization
Droof previously submitted and on file with the Gambling Control
Board
Check the box below which best describes
your organization
, .,"' ,: : ,. ,: ,', '~.::: ~.>~:ir:E:,~j<i)<i':;iU:,j~::::i::,;lii:I:,;;:i:::::\\!~,::;!~' :,/::: ".:.:i '<i\;.:':" :' ,~',',' ',::; ::;:::,' ;' ::: :::<~ ! :'!::,:::,:::o: /:;[:\:i::>'.:
Gambling"e(~rI'~~'~,s,':'fJt~rmati~n;
Name of Establishment where gambling activity will be conducted
t'v\ 0 ':h c-l \\ 0 e..o \ '-c" R- 'Y\- k
Street City State
Zip Code
County
t 'OJ- "--r\i\O\fv..~S 9ft\(" \L 'C kv(\"hcd\o tv\N
Date(s) of activity (for raffles, indicate the date of the drawing)
SS3<o2
w V"' \ h-t
"2--000
Check the box or boxes which indicate the type of gambling activity your organization will be conducting
D Bingo ~Raffles D Paddlewheels D pull-tabs D Tipboards
Be sure the Local Unit of Government and the CEO of your organization sign
the reverse side of this application.
For Board Use Only
Date & Initials of Specialist
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Local Unitiaf Government Jurisdiction
. Is this gambling premises located within city limits? r::;&l Yes 0 No
If Yes, write the n~me of the City: \ \
CIty Name M oV\f,e.t I)
If No, write the name of the County and the Township:
County Name .. Township Name
Check the appropriate status of the Township: urganized Dnorganized
Local..t.iilitbf Govetnmimf:4tknowledgment
1. The city must sign this application if the gambling
premises is within city limits.
2. The county and township must sign this applica-
tion if the gambling premises is not within city limits.
3. DO NOT submit this application to thc Gambling Control
Board if it is denied by the local unit of government.
4. NOTE: A Township may not deny an application.
Upon submission of this application to the Gambling Control Board. the exemption will be issued not
more than 30 days (60 days for cities of the 1 st class) from the date the local unit of government
signed the applfcation. provided the application is complete and all necessary information has been
received, unless the local unit of government passes a resolution to specifically prohibit the activity. A
copy of that resolution must be received by the Gambling Control Board within 30 days of the date
filled in below. Cities of the first class have 60 days in which to disallow the activity.
Township Acknowledgment of Awareness of
Application
Signature of person acknowledging application
Date Signed:
Title of person acknowledging application
i'Oath.'OfChle:tEXe~tJttve..'Offlcei)',"':iii;'
this application and all information is true. accurate and complete.
.
S mit th plication at least 45 days prior to your scheduled date of activity.
Be sure to attach the $25 application fee and a copy of your proof of nonprofit status.
Mail the complete application and attachments to:
Gambling Control Board
1711 W. County Rd B Suite 3005
Roseville, MN 55113
This publication will be made available In alternative format (i.e. large print, braille) upon request.
Questions on this form should be directed to the licensing Section of the Gambling Control Board at
(612)639-4000.
Hearing impaired individuals using a TOO may call the Minnesota Relay Service at 1~800-627-3529 in the
Greater Minnesota Area or 297-5353 in the Metro Area.
The information requested on this form will be used by the Gambling Control Board (GCB) to determine your
compliance with Minnesota Statues and rules governing lawful gambling activities. All of the information
that you supply on this form will become public information when received by the GCB.
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RESOLUTION 2000-14
RESOLUTION AUTHORIZING THE ISSUANCE
OF A GAMBLING LICENSE
WHEREAS, the Wright County Chapter of Ducks Unlimited has submitted an application to
the City Council of Monticello for the issuance of a charitable gambling license to conduct
gambling at a banquet to be held May 8, 2000 at the Monticello Roller Rink located in
Monticello, Minnesota; and
WHEREAS, upon review of the organization's activities, the Council is not opposed to the
gambling license being issued by the State Gambling Control Board,
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL that the Wright County
Ducks Unlimited application for license issuance listed above is hereby approved and the State
Gambling Control Board is authorized to proeess the application.
Adopted by the Monticello City Council this 13th day of March, 2000.
ATTEST:
Roger Belsaas, Mayor
Riek WolfsteUer, City Administrator
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Council Agenda - 3/13/00
5B.
Consideration of a resolution authorizine issuance of a charitable gambling license
for Monticello Youth Hockey. (RW)
A.
REFERENCE AND BACKGROUND:
The Monticello Youth Hockey Association is requesting approval to conduct charitable
gambling operations at llawks Sports Bar & Grill. The setup consists of four boxes which
are run from behind the bar with the employees of Hawk's doing the distribution. The
Monticello Lions Club also has a booth at this location.
Prior to the State Gambling Control Board issuing a license, the City Council must pass
a resolution approving or denying the application.
B. AL TERNA TIVE ACTIONS:
1. Adopt a resolution authorizing the State Gambling Control Board to issue a
pull tab license to the Monticello Youth Hockey Association at I-Iawks Sports
Bar and Grill.
2.
Do not approve the resolution.
C. STAFF RECOMMENDATION:
The City Administrator recommends adopting the resolution authorizing the issuance of the
license.
I). SUPPORTING DATA:
· Application/Site Agreement
· Letter from Youth Hockey Association
· Resolution
FOR BOARD USE ONLY
Check #
Initials
Date
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Minnesota Lawful Gambling
Premises Permit Application.. LG214
Base #
PP#
Fee
Page 1 of 3
1/99
Class of Permit
Check one:
o Class A - $400 Pull-tabs, tipboards, paddlewheels, raffles, bingo
~ Class B _ $250 pull.tabs, tipboards, paddlewheels, raffles
o Class C. $200 Bingo only OR bingo and pull-tabs when total gross receipts do not exceed $50,000 per year
o Class 0 - $150 Raffles only
Organization Information
Organization name (as it appears on documentation filed with
Minnesota Secretary of State or Internal Revenue Service)
Base license number
oL{/i.f
Daytime phone number
(bIZ... ) 1/7-0 1~"I'l
~ d 111'& /'
Gambling Premises Information
Name of establishment where gambling will be conducted
Street address (do not use a P.O. box number)
JlqwK's -:,.( S BQr.../. G,-;' 69 a-r+ bIll:
City & county where gambling premises is located-OR- Township & county where gambling premises is located if outside city limits
. /f1Dt1,-f,'aJ/, w.,./~ hi
Is the premises located within city limits? Yes [t) No 0
If No, is township: 0 Organized
o Unorganized
o Unincorporated
Does your organization own the building where the gambling will be conducted?
o Yes ~ No If no, attach (1) the appropriate lawful gambling lease form, and
(2) the sketch of all leased areas with dimensions and square footage clearly defined
A lease and sketch are not required for class D applications.
Name of legal owner of premises Address City State/Zip
II1hu/l-p
t11N
S'S 161--
Address(es) of Storage Space of Gambling Equipment
List all locations where used and unused gambling product is stored. Do not use-a P.O. box number. (Attach an additional
sheet if necessary.)
Address ~ StatelZip
Questions? Call the Licensing Section of the Gambling Control Board at 651.639-4000. If you use a TTY, you can
call the Board by using the Minnesota Relay SelVice aI1-800-627 -3529 and ask to piace a call to 651-639-4000. This
form will be made available in alternative format (i.e. large print, Braille) upon request.
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Premises Permit Application - LG214
Page 2 of 3
1/99
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Bingo Occasions - for Class A or C Permits
If applying for a class A or C permit, enter days and beginning/ending hours of bingo occasions (indicate A.M. or P.M.). No
more than ten bingo occasions may be conducted per week. An occasion must be at least one and one-half hours, not to
exceed four hours.
~ Beoinning/Endina Hours ~ Beainnina/EndinQ Hours ~ Beainnina/Endina Hours
to
to
to
to
to
to
to
to
Gambling Bank Account Information
Bank name
Bank address
,
to
to
Bankaccountnumbe~
City
State/Zip code
* New organizations: The account number may be obtained and submitted to the Gambling Control Board within
ten days after you receive your premises permit.
j~lIme'faddress,.'and...tltleOf:member8'a~Ortzed....~~.~.lg~;~hec;~1f,..:tm'h~;lJ~m
....olllanlZatlon.streasurermaynot handle:gambllngfunds~ .:'ii..i:.': ...:;< .........:,;.... .
.
Name
Address
odd
:k '^ '"
fIl &fte
r< ~ .kke
3D
Title
P11.J.L 4/6" 1t161t h..t U 0
b' 6 It. ~'f-;V'"v' ~,p~t"
ceo
Acknowledgment
Gambling site authorization
I hereby consent that local law enforcement officers, the
board or agents of the board, or the commissioner of
revenue or pUblic safety or agents of the commissioners,
may enter the premises to enforce the law.
Bank records Information
The board is authorized to inspect the bank records of the
gambling account whenever necessary to fulfill
requirements of current gambling rules and law.
Organization license authorization
I hereby authorize the Gambling Control Board to modify
the class of organization license to be consistent with the
class of permit being applied for.
.....
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Oath
I declare that:
1. I have read this application and all information submitted
to the board is true, accurate, and complete;
2. all other required information has been fully disclosed;
3. I am the chief executive officer of the organization;
4. I assume full responsibility for the fair and lawful
operation of all activities to be conducted;
5. I will familiarize myself with the laws of Minnesota
governing lawful gambling and rules of the board and
agree, if licensed, to abide by those laws and rules,
including amendments to them;
6. any changes in application information will be submittEld
to the board and local unit of government within ten
days of the change; and
7. I understand that failure to provide required information
or providing false or misleading information may result
in the denial or revocation of the license.
Signature of chief executive officer (Designee may not sign)
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Date
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Premises Permit Application - LG214
Page 3 of 3
1/99
Local Unit of Government Acknowledgment and Approval
"" ",'''' '"''''''",'', m.". , ""'i,"'";,',,"",""",,""".,"",, ,. "';'" "," """",' "'." ",""""""', " """,' ',"',' ' ".' , ", "" ' "',,.,'
IUh~'gambllngPremI8es'8~lthlnclty:llrI1lts;,the clty:m~~~.lgn,.thl$al'flllcatlon and provide a 1'88()lutlon~
On behalf of the city, I hereby acknowledge this
application for lawful gambling activity at the premises
located within the city's jurisdiction, and that a Print name of city
resolution specifically approving or denying the
application will be forwarded to the applying
organization. Signature of city personnel receiving application
Title Date I I
llftl;1e;g.iriblljjg,P!8rt1lses:ls:,It)catttd.lhil;toW...~~IP~bOth:the:;~()~~WJ.jjdt~wnt;hlp:!rouS~,~lgl1tI\18;aPI'II~tlc)...~'
The county must provide aresolution.:
For the township: On behalf of the township, I
acknowledge that the organization is applying to
conduct lawful gambling activity within the township Print name of township
limits. ,
A township has no statutory authority to approve or Signature of township official acknowledging application
deny an application (Minn. Stat. sec. 349.213, subd. 2).
Title Date I I
For the county: On behalf of the county, I hereby
acknowledge this application for lawful gambling
activity at the premises located within the county's Print name of county
jurisdiction, and that a resolution specifically
approving or denying the application will be forwarded
to the applying organization. Signature of county personnel receiving application
Title Date I I
The information requested on this form (and any
attachments) will be used by the Gambling Control Board
(Board) to determine your qualifications to be involved in
lawful gambling activities in Minnesota, and to assist the
Board in conducting a background investigation of you.
You have the right to refuse to supply the information
requested; however, if you refuse to supply this
information, the Board may not be able to determine your
qualifications and, as a consequence, may refuse to issue
you a premises permit. If you supply the information
requested, the Board will be able to process your
application.
This form may require the disclosure of your Social
Security number. If so, your Social Security number will
be used to determine your compliance with the tax laws
of Minnesota. Authorization for requiring your Social
Security number is found at 42 U.S.C. 405 (c)(i).
Your name and address will be public information when
received by the Board. All the other information that you
provide will be private data about you until the Board issues
your premises permit. When the Board issues your
premises permit, all of the information that you have
provided to the Board in the process of applying for your
premises permit will become public except for your Social
Security number, which remains private. If the Board does
not issue you a premises permit, all the information you
have provided in the process of applying for a premises
permit remains private, with the exception of your name
and address which will remain public.
Private data about you are available only to the following:
Board members, staff of the Board whose work
assignment requires that they have access to the
information; the Minnesota Department of Public Safety;
the Minnesota Attorney General; the Minnesota
Commissioners of Administration, Finance, and Revenue;
the Minnesota Legislative Auditor, national an.d
international gambling regulatory agencies; anyone
pursuant to court order; other individuals and agencies
that are specifically authorized by state or federal law to
have access to the information; individuals and agencies
for which law or legal order authorizes a new use or
sharing of information after this Notice was given; and
anyone with your consent.
S,b
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Premises Permit Application . LG214, Instructions
1/99
Attachments
1. Lease and sketch.
If the gambling premises is leased, attach a copy of:
. the appropriate lawful gambling lease form, and
. the sketch of all leased areas with dimensions and square footage
clearly defined.
Lease forms:
LG221 _ Lease for pull-tab, paddlewheels, tipboard, and/or raffle activity.
LG222 - Lease for bingo activity.
LG223 - Lease for pull-tab dispensing device activity.
2. Permit Fee.
For each premises permit application, attach a separate check, payable
to the State of Minnesota, for the appropriate permit fee;
Class A - $400
Class B - $250
Class C - $200
Class D - $150
3. Resolution of Approval.
. The premises permit application must be approved by the local unit of
government (city or county). Attach a copy of the resolution which
shows approval of your application.
. If the local unit of government denies your application, do not submit
the application to the Gambling Control Board.
"
Where to mail your application Mail your completed application with the attachments to:
Gambling Control Board
Suite 300 South
1711 West County Road B
Roseville, MN 55113
Processing
Allow ten weeks for processing the application. Your organization's chief
executive officer will be contacted in writing regarding any missing information.
Term of permit
The expiration date of a premises permit is the same as the expiration date of
your organization's license.
Local ordinances
Check with the local unit of government (city or county) regarding local
ordinances, if any, that apply to lawful gambling. Local ordinances may be
more restrictive than statute or rule.
sS
Minnesota Lawful Gambling
Lease for Pull..Tab, Paddlewheel, Tipboard, and/or Raffle Activi .. LG221
.
City
/J?~ 111,( (fA
City
Zip
553(j~
Zip
Daytime Phone
(U I z- ) 2f:J 'lID 0
Daytime Phone
/1 .
t: '!1et:J1;{'L1rJ
City
c 7 I .. k't 811/('1
GCB license no. of organization
( ftJ 2 ) 29.5- tfA
Daytime Phone
((pll. ) 27') ~IIIJ()
Daytime Phone
t:..:~-71/f'
J,_ --.J l(./
Zip
. Total rent cannot exceed $1,000 per month for all
non-bingo activity for this premises.
· For bingo activity, use lease form LG222.
· For pull-tab dispensing machines, use lease form
LG223.
· An organization may not pay rent to itself or to
any of its affiliates for space used for the conduct
of lawful gambling.
Sketch and Dimensions of Leased Area
Rent to be paid per month $
(If no rent Is to be paid, indicate -0-)
'-<.
.
Sketch: For all areas being leased for the conduct
of gambling and storage of gambling product at this
premises, attach a sketch (drawing) showing: (1) the
leased area(s), and (2) the dimensions.
Dimensions
The leased areas are:
feet by
feet by
feet by
feet by
feet by
Storage
Storage
. ...............,....... .........,.......< ....:.... .' ..... ....:.....
Fpr:.pr~Tise!S...p~rmlt..Rene~I..AppliCatiP9$.:Only::....1"JlP...
Chang'tl.ihave,'be'l'l:~.~~eatthe'.tl~te,:y()U do.:no~:~ave.~:i.'
co.' ..mplete',.thl...$ectlon...p~..provlde"a..$k~tc::l1. ..' ..
.'", ",.,., '" '.",' .",', " ':','.'.:. ,..'.".
feet for a total of square feet.
feet for a total of square feet.
feet for a total of square feet.
feet for a total of square feet.
feet for a total of square feet.
Combined total square feet.
Lawful Gambling Activity
Type of gambling activity that will be conducted at this gambling premises. Check all that apply.
Paddlewheels
~Pull.Tabs
Raffles
Tlpboards
Term of Lease
The term of this lease agreement will be concurrent with
the premises permit issued by the Gambling Control
Board, unless terminated sooner by mutual consent of
the lessor and lessee.
Amended Lease Only
If this is an amended lease showing changes occur-
ring during the term of the current premises permit,
write in the date that the changes will be effective
-1-1-. Both parties that signed the lease
must initial and date all changes.
.
Questions on this form should be directed to the Licensing
Section of the Gambling Control Board (Board) at 651-639-
4000. This publication will be made available in altemative
format (i.e. large print. Braille) upon request. Hearing impaired
individuals using a TTY may call the Minnesota Relay Service
at 1-800-627-3529 and ask to place a call to 651-639-4000.
The information requested on this form will become publiC
information when received by the Board, and will be used to
determine your compliance with Minnesota statutes and rules
goveming lawful gambling activities.
Page 1 of2
1/99
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Lease for Pull-Tab, Paddlewheel, Tipboard, and/or Raffle Activity - LG221
I LESSOR PROHIBITIONS I agents are found to be solely 4. The lessor shall not modify or
Management of Gambling responsible for any illegal gambling terminate this lease in whole or in part
Prohibited conducted at that site that is due to the lessor's violation of the
prohibited by Minnesota Rules. part provisions listed on this lease.
7661.0050. subpart 1. or Minnesota
Statutes. section 609.75, unless the Arbitration Process
organization's agents responsible for The lessor agrees to arbitration when a
the illegal gambling activity are also violation of these lease provisions is
agents or employees of the lessor. alleged. The arbitrator shall be the eRG.
4. The lessor shall not modify or
terminate the lease in whole or in part IACCESS TO PERMITTED PREMISESI
because the organization reported to .
a state or local law enforcement State of Mmnesota and Law
authority or the board the occurrence Enforcement
at the site of illegal gambling activity The board and its agents. the
in which the organization did not commissioners of revenue and public
participate. safety and their ag'ents, and law
Other Prohibitions enforcement personnel have access to
the permitted premises at any
reasonable time during the business
hours of the lessor.
The owner of the premises or the lessor
will not manage the conduct of gambling
at the premises.
Participation as Players Prohibited
The lessor, the lessor's immediate family.
and any agents or gambling employees
of the lessor will not participate as players
in the conduct of lawful gambling on the
premises.
Illegal Gambling
1. The lessor is aware of the prohibition
against illegal gambling in Minnesota
Statutes, section 609.75. and the
penalties for illegal gambling
violations in Minnesota Rules, part
7661.0050, s~bpart 3.
2. To the best ofthe lessor's knowledge.
the lessor affirms that any and all
games or devices located on the
premises are not being used. and are
not capable of being used, in a
manner that violates the prohibitions
against illegal gambling in Minnesota
Statutes, section 609.75, and the
penalties for illegal gambling
violations in Minnesota Rules, part
7661.0050. subpart 3.
3. Notwithstanding Minnesota Rules,
part 7861.0050, subp. 3. an
organization must continue making
rent payments, pursuant to the terms
of the lease. if the organization or its
1. The lessor will not impose restrictions
on the organization with respect to
providers (distributors) of gambling.
related equipment and services or in
the use of net profits for lawful
purposes.
2. The lessor, the lessor's immediate
family, and any agents or employees
of the lessor will not require the
organization to perform any action
that would violate statute or rule.
3. If there is a dispute as to whether any
of these lease provisions have been
violated, the lease will remain in effect
pending a final determination by the
Compliance Review Group (CRG) of
the Gambling Control Board.
Organization
The organization has access to the
permitted premises during any time
reasonable and when necessary for the
conduct of lawful gambling on the
premises.
I LESSOR RECORDS MAINTAINED I
The lessor shall maintain a record of all
money received from the organization.
and make the record available to the
board and its agents, the commissioners
of revenue and public safety and their
agents upon demand. The record shall
be maintained for a period of 3-1/2 years.
OTHER OBLIGATIONS AND AGREEMENTS - Attachment
All obligations and agreements between the organization and the lessor are contained in or attached to this lease.
(Attach additional sheets if necessary. Any attachments to this lease must be dated and signed by both the lessor and
the lessee.)
This lease is the total and only agreement between the lessor and the organization conducting lawful gambling activities
other than bingo and pull.tab dispensing devices. There is no other agreement and no other consideration required between
the parties as to the lawful gambling and other matters related to this lease. Any changes in this lease will be submitted to
th ambling Control oard ten days prior to the effective date of the change. .
, '. I
/JI{:;r
teLA- ~ t )
Print Name and Title of Lessor
;;1/9 ttJ
Date
Signature of Organization Official (Lessee)
Date
Print Name and TItle of Lessee
Page20f2
1199
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To:
From:
Date:
Subject:
Monticello City Counsel
Monticello Youth Hockey Association
March 9 2000
Purpose for undertaking lawful gambling.
The Monticello Youth Hockey Association would like to conduct lawful gambling and the
proceeds to be used for the following purposes.
. For activities and facilities benefiting youth under the age of 21 such as:
1. Ice arena building fund
2. Improve affordability of Ice time/costs to Monticello youth.
3. Decrease costs of equipment, ice time, and coaching to all
initiation level Monticello youth wanting to participate in hockey
and possible eventually all ice skating activities.
. To provide scholarship funds to eligible Monticello youth under 21 yo.
Todd M. Banek, CEO
John R. Rogosheske, Gambling Manager
Monticello Youth Hockey Association
P.O. Box 584
Monticello, Minnesota. 55362
s8>
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1999-2000 MYHA BOARD MEMBERS
President Ray Henningson
Vice President Todd Banek
Treasurer Tina Martin
Secretary Teresa Childers
Gambling Manager John Rogosheske
Ice Coordinator Tricia Stelhnach
Coaching Coordinators Mike Mitchell
Chuck Lower
Equipment Manager Mark Lang
Initiation coordinator John Bell
. Head Registrar Lisa Wing
District 5 Representative Vance Ellis
4th Street Manager Tom Bitzer
Newsletter Marilyn Henningson
Tournament Coordinator Trish Taylor
Special Fundraising Coordinator Mark Christianson
Todd M. Banek, CEO
John R. Rogosheske, Gambling Manager
~.
Monticello Youth Hockey Association
P.O. Box 584
Monticello, Minnesota. 55362
5~
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To:
From:
Date:
Subject:
Monticello City Counsel
Monticello Youth Hockey Association
March 9 2000
Internal Operations for Lawful Gambling
Here is an outline of our organizations internal controls to ensure integrity of our gambling
operation by establishing accounting and administrative controls listed below.
The chief executive officer and gambling manager will be responsible for the following:
. Preparing monthly reports to the membership.
. Ensure membership gives prior authorization for all gambling expenditures.
. Records organizational meeting minutes the monthly gambling report and
authorization of expenditures.
. Authorized to sigh checks from the gambling account (at least two members'
signature required). May not be the treasurer.
. Prepares gambling bank deposits.
. Audits closed games.
. Investigates and resolves cash variances.
. Reconciles and resolves profit carryover variances
. Prepares and verifies accuracy of reports submitted to the Department of
Revenue and Gambling Control Board.
. Verifies organization's compliance with expense calculations.
. Handles fund losses of missing inventory, tickets and/or receipts for games in
play.
The treasurer will be responsible for the following:
. Audits gambling bank deposits.
The Gambling manager and assistant gambling manager will be responsible for the
following
. Keeping petpetual inventory records
The CEO will be responsible for the following:
. Conducting the physical Inventory.
Todd M. Banek, CEO
John R. Rogosheske, Gambling Manager
Monticello Youth Hockey Association
P.O. Box 584
Monticello, Minnesota. 55362
sB
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RESOLUTION NO. 2000-16
RESOLUTION AUTHORIZING THE ISSUANCE
OF A CHARITABLE GAMBLING LICENSE
WHEREAS, the Monticello Youth l-lockey Association has submitted an application to the City
Council of Monticello for the issuance of a charitable gambling I icense to conduct gambling
operations at Hawks Sports Bar and Grill located in Monticello, Minnesota; and
WHEREAS, upon review of the organization's activities, the City Council is not opposed to the
gambling license being issued by the State Gambling Control Board.
NOW TIIEREFORE, BE IT RESOLVED BY TIlE CITY COUNCIL OF MONTICELLO,
MINNESOTA that the Monticello Youth Hockey Association's application for license issuance
listed above is hereby approved, and the State Gambling Control Board is authorized to process
the application. -
Adopted by the City Council this 13th day of March, 2000.
Roger Belsaas, Mayor
ATTEST:
Rick Wolfsteller, City Administrator
Sb
. City Council Agenda - 3/13/00
5D. Consideration to approve the Subordination Aereement associated with the
Contract for Private Development between Twin City Die Castines. the ORA. and
the City of Monticello. (O.K.)
A. Reference and backeround:
Upon the preparation of loan closing documents for the approximate $4.8 million
Industrial Revenue Bond (IRB) for the Twin City Die Castings project, the Ag Board
reviewed the Contract for Private Development and required the following:
a. A Subordination Agreement be executed by the City and HRA in favor of the Ag
Board and its successors and assigns.
The Subordination Agreement was reviewed by HRA Attorney Dan Greensweig and
Greensweig is requesting the Attorney for the Ag Board add one provision to the
Agreement: The Authority has the ability to cure upon default ofthe Contract. The
Attorney for the Ag Board has agreed to this request. Additionally, Twin City Die
Castings will be added as a party to the Subordination Agreement.
B. Alternative Action:
.
1.
A motion to approve the Subordination Agreement associated with the Contract
for Private Development between Twin City Die Castings, the HRA, and the City
of Monticello.
2. A motion to deny approval ofthe Subordination Agreement.
3. A motion to table any action.
C. Recommendation:
The City Administrator recommends Alternative No.1. This is more or less a
housekeeping item.
D. Supportin~ Data:
Copy ofthe Subordination Agreement. Amended version forth coming for execution.
.
1
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SUBORDINATION AGREEMENT
(Contract for Private Development)
THIS AGREEMENT is made as ofthis _ day of March, 2000, by the HOUSING AND
REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO, MINNESOTA,
a public body corporate and politic under the laws of Minnesota (the Authority) and CITY OF
MONTICELLO, a municipal corporation (the City) in favor ofMINNESOT A AGRICULTURAL
AND ECONOMIC DEVELOPMENT BOARD, an authority of the State of Minnesota and its
successors and assigns (Mortgagee).
Preliminary Statement of Facts
TWIN CITY DIE CASTINGS COMPANY, a Minnesota corporation (the Corporation) is
the owner of certain real property located in Wright County, Minnesota legally described on
Exhibit A attached hereto and incorporated herein by reference (the Property).
The Property is subject to the Contract for Private Development (the Development Contract)
dated October 25, 1999, between the Authority, the City and the Corporation, which Development
Contract was filed in the office of the Wright County Recorder on ' as
Document No.
Mortgagee has loaned to the Corporation $ (the Loan) pursuant to
the terms and conditions of the Loan Agreement (the Loan Agreement) between the Corporation and
Mortgagee dated as of March ,2000. To secure the performance of the Corporation of its
obligations under the Loan Agreement, the Corporation has granted to Mortgagee, a Combination
Mortgage, Security Agreement and Fixture Financing Statement (the Mortgage) dated as of
March , 2000, which Mortgage was filed for record in the office of the Wright County
Recorder on , 2000, as Document No.
Mortgagee requires as a condition to making the Loan that the Authority and the City
subordinate its lien and rights under the Development Contract to the lien of the Mortgage.
Doc# 1207417\1 .3/3/00
5\J
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NOW, THEREFORE, in consideration of the foregoing and in consideration of One Dollar
($1.00) and other good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged by the Authority and the City, the Authority and the City hereby agree as follows:
1. Subordination of Development Contract. The Authority and the City hereby agree
that the Development Contract and all rights and remedies of the Authority and the City thereunder
are hereby subjected and subordinated and shall remain in all respects and for all purposes subject
and subordinate to the lien of the Mortgage and all amendments, modifications, renewals and
extensions thereof and subject to and subordinate in all respects to the rights and interests of the
Mortgagee and its successors and assigns as fully and with the same effect as if the Mortgage had
been duly executed, acknowledged and filed for record and the indebtedness secured by the
Mortgage fully disbursed prior to the execution of the Development Contract.
2. Agreements Not Binding on Mortgagee. In addition to the other rights granted to
Mortgagee hereunder, if Mortgagee acquires title to the Property by means offorecIosure, deed in
lieu of foreclosure, or by any other means or manner, then, effective as of the date Mortgagee
acquires title to the Property, the Development Contract shall cease to encumber the Property or any
portion thereof and thereafter Mortgagee may own, convey and sell all or any part of its interest in
the Property free and clear of the Development Contract.
3. Benefit of Parties. This Agreement shall run for the benefit of Mortgagee and its
successors and assigns under the Mortgage.
IN WITNESS WHEREOF, the Authority and the City have executed this Agreement as of
the date first shown above.
HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF
MONTICELLO, MINNESOTA
By
Its:
By
Its:
2
SD
.
.
.
CITY OF MONTICELLO
By
Its;
By
Its;
STATE OF MINNESOTA )
) ss.
COUNTY OF WRIGHT )
The following instrument was acknowledged before me this ~ day of
2000, by the and the of the
HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF
MONTICELLO, MINNESOTA, a public body corporate and politic under the laws of Minnesota
(the Authority), on behalf ofthe Authority.
Notary Public
STATE OF MINNESOTA )
) ss.
COUNTY OF WRIGHT )
The following instrument was acknowledged before me this ~ day of
2000, by the and the
OF MONTICELLO, a municipal corporation, on behalf of the corporation.
of the CITY
Notary Public
3
sD
.
THIS INSTRUMENT WAS DRAFTED BY:
LINDQUIST & VENNUM (LLK)
4200 IDS Center
80 South Eighth Street
Minneapolis, MN 55402
(612) 371-3211
.
.
4
50
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EXHIBIT A
Legal Description of the Property
Lot 1, Block 1, Monticello Commerce Center 4th Addition, Wright County,
Minnesota.
5
SD
. City Council Agenda - 3/13/00
5E. Consideration to aoorove the Estoopel Certificate associated with the Contract for
Private Development between Twin City Die Castin2s. the HRA. and the City of
Monticello. (O.K.)
A. Reference and back2round:
Upon the preparation ofloan closing documents for the approximate $4.8 million
Industrial Revenue Bond (IRB) for the Twin City Die Castings project, the Ag Board
reviewed the Contract for Private Development and requires the following:
a. An Estoppel Certificate be executed by the City and the BRA verifYing, among
other things, that the Development Contract is in full force and effect, that no
modifications have been made to the Development Contract, that no defaults exist
thereunder and the like.
b. The BRA approves the mortgage financing for the project.
.
The IRB will be issued by the Minnesota Department of Trade and Economic
Development financing the building construction and machinery and equipment. It is
anticipated the closing may take place March 15, 2000.
The Estoppel Certificate was reviewed by BRA Attorney Dan Greensweig and he is
requesting the Attorney for the Ag Board add Twin City Die Castings as a party to the
Certificate. Attorney Greensweig recommends approval of the Certificate.
Within the Contract for Private Development, the construction commencement date was
changed from December 1, 1999, to January 1,2000, due to the time associated with
research and development of a fire code plan for the magnesium processing plant. Due to
the delay in the delivery of construction materials and supply, the City Council is asked to
approve changing the construction completion date for Phase I from June 1, 2000, to
September 1,2000. The HRA Attorney and Twin City Die Castings concur with
changing the completion date to avoid default of the Contract.
B. Alternative Action:
1. A motion to approve the Estoppel Certificate, acknowledging the change in the
construction commencement date from December 1, 1999, to January 1,2000, and
approving and acknowledging the change of the construction completion date for
Phase I from June 1, 2000, to September 1, 2000, within the Contract for Private
Development between Twin City Die Castings, the BRA, and the City of
Monticello.
.
1
.
City Council Agenda - 3/13/00
2.
A motion to deny approval of the Estoppel Certificate.
3.
A motion to table any action.
c.
Recommendation:
The City Administrator recommends Alternative No.1. approving the certificate and
approving and acknowledging the change ofthe construction completion date for Phase I .
D. SU(JDortine: Data:
Copy of the Estoppel Certificate. Amended version forth coming for execution.
.
.
2
.
.
.
ESTOPPEL CERTIFICATE
THIS CERTIFICATE is made as of this ~ day of March, 2000, by the HOUSING AND
REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO, MINNESOTA,
a public body corporate and politic under the laws of Minnesota (the Authority) and the CITY OF
MONTICELLO, a municipal corporation (the City) in favor ofMINNESOT A AGRICULTURAL
AND ECONOMIC DEVELOPMENT BOARD, an authority of the State of Minnesota and its
successors and assigns (Mortgagee).
Preliminary Statement of Facts
TWIN CITY DIE CASTINGS COMPANY, a Minnesota corporation (the Corporation) is
the owner of certain real property located in Wright County, Minnesota legally described on
Exhibit A attached hereto and incorporated herein by reference (the Property).
The Property is subject to the Contract for Private Development (the Development Contract)
dated October 25, 1999, between the Authority, the City and the Corporation, which Development
Contract was filed in the office of the Wright County Recorder on , as
Document No.
Mortgagee has loaned to the Corporation $ (the Loan) pursuant to
the terms and conditions ofthe Loan Agreement (the Loan Agreement) between the Corporation and
Mortgagee dated as of March _,2000. To secure the performance of the Corporation of its
obligations under the Loan Agreement, the Corporation has granted to Mortgagee, a Combination
Mortgage, Security Agreement and Fixture Financing Statement (the Mortgage) dated as of
March , 2000, which Mortgage was filed for record in the office of the Wright County
Recorder on ,2000, as Document No.
Mortgagee requires as a condition to making the Loan that the Authority and the City provide
the Mortgagee with this Certificate.
NOW, THEREFORE, in consideration ofthe foregoing and in consideration of One Dollar
($1.00) and other good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged by the Authority and the City, the Authority and the City hereby agree as follows:
(01) The Development Contract has not been modified, changed, altered or
amended in any respect either orally or in writing.
(02) The Development Contract is in full force and effect and is not subject to any
conditions not set forth in the Development Contract.
(03) The Corporation is not in default in the performance of any of the terms or
Drn;# 1207428\1-3/3/00
SE
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(04)
(05)
(06)
conditions of the Development Contract, nor is there now any fact or
condition which, with notice or lapse of time or both, will become such a
default. Neither the Authority nor the City has delivered to the Corporation
any notice of default with respect to the Corporation's obligations under the
Development Contract.
Pursuant to Section 7.1 of the Development Contract, the Authority approves
of the Loan provided by the Mortgagee.
The individuals executing this Certificate on behalf of the Authority and the
City represent and warrant that they have the power and authority to execute
this Certificate.
The Authority and the City acknowledge Mortgagee is relying upon the truth
of the statements contained in this Certificate in completing the Loan. The
representations contained herein shall inure to the benefit of Mortgagee and
its successors and assigns and shall be binding upon the Authority and the
City and their successors and assigns.
IN WITNESS WHEREOF, this Certificate is dated as of the date first shown above.
.
.
HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF
MONTICELLO, MINNESOTA
By
Its:
By
Its:
Sl
.
.
.
CITY OF MONTICELLO
By
Its:
By
Its:
STATE OF MINNESOTA)
) ss.
COUNTY OF WRIGHT )
The following instrument was acknowledged before me this _ day of
2000, by the and the of the
HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF
MONTICELLO, MINNESOTA, a public body corporate and politic under the laws of Minnesota
(the Authority), on behalf of the Authority.
Notary Public
STATE OF MINNESOTA )
) ss.
COUNTY OF WRIGHT )
The following instrument was acknowledged before me this _ day of
2000, by the and the
OF MONTICELLO, a municipal corporation, on behalf of the corporation.
of the CITY
Notary Public
Sf:
.
.
,
THIS INSTRUMENT WAS DRAFTED BY:
LINDQUIST & VENNUM (LLK)
4200 IDS Center
80 South Eighth Street
Minneapolis, MN 55402
(612) 371-3211
Sf:
.
EXHIBIT A
Legal Description of the Property
Lot 1, Block 1, Monticello Commerce Center 4th Addition, Wright County,
Minnesota.
.
.
s~
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.
,
SF.
Council Agenda - 3/13/00
Consideration of issuing a gambling license to Lions Club to conduct gambling at
the Monticello Country Club. (RW)
A. REFERENCE AND BACKGROUND:
The Monticello Lions Club is requesting approval to conduct pull tab gambling operations at
the Monticello Country Club. The Monticello Lions currently operate pull tab gambling
operations at Joyner Lanes and Hawks Sports Bar and Grill.
Prior to the State Gambling Control Board issuing a license, the City Council must pass a
resolution approving or denying thc appl ication. The stall is not aware of any reason why the
Council would not allow the state to issue this license.
B. AL TERNA TIVE ACTIONS:
c.
1. Adopt a resolution authorizing the State Gambling Control Board to issue a pull tab
license to Monticello Lions Club for the Monticello Country Club facility.
2. Do not approve the resolution.
STAFF RECOMMENDATION:
The City Administrator recommends the resolution being adopted authorizing the issuance of
the license. The City is not aware of any reason why the license should be denied.
D. SUPPORTING DATA:
.
Copy of resolution
Copy of application
.
.
.
.
RESOLUTION NO. 2000-15
RESOLUTION AUTHORIZING THE ISSUANCE
OF A GAMBLING LICENSE
WHEREAS, the Monticello Lions Club has submitted an application to the City Council of
Monticello for the issuance of a charitable gambling license to conduct pull tab operations at the
Monticello Country Club located in Monticello, Minnesota, and
WHEREAS, upon review of the organization's activities, the City Council is not opposed to the
gambling license being issued by the State Gambling Control Board,
NOW THEREFORE, BE IT RESOL VED BY THE CITY COUNCIL OF MONTICELLO,
MINNESOTA that the Monticello Lions Club application for license issuance listed above is
hereby approved and the State Gambling Control Board is authorized to process the application.
Adopted by the Monticello City Council this 13lh day of March, 2000.
ATTEST:
Roger Belsaas, Mayor
Rick Wolfsteller, City Administrator
5\=
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Minnesota Lawful Gambling
Premises Permit Application.. LG214
Class of Permit
Check one:
o Class A . $400
E- Class B - $250
o Class C - $200
D Class D - $150
Base #
PP#
Fee
FOR BOARD USE ONLY
Check #
Initials
Date
Page 1 of 3
1/99
Pull.tabs, tipboards, paddlewheels, raffles, bingo
Pull-tabs, tipboards, paddlewheels, raffles
Bingo only OR bingo and pull-tabs when total gross receipts do not exceed $50,000 per year
Raffles only
Organization Information
Organization name (as it appears on documentation filed with
Minnesota Secretary of State or Internal Revenue Service)
,< ;ON S .T.t1ITL.. /llat0/-:e; C' I J J
Name of chief executive officer (cannot be your gambling manager)
<::Jc~ ~ ~ Fe 4 l<.<; " IV
Base license number
.BcI/8,~ S-
Daytime phone number
(,,~-/ )c;3g-... CJ'14 ~
.
Gambling Premises Information
Name of establisl)ment where gambling will be conducted Street address (do not use a P.O. box number)
ty'}Or1+ic~llo COVrlTA'I C'U~ jdO'? Go It c'vrs-e I?oa<i
City & COUnty whe", gambling p"'m~es is located-CRT own""p & county when> gambling "",mlses Is located If outside city limits
rY10Y\+1 <.'e. ( 10 I LJIIG-HT COtJN'''1'
Is the premises located within city limits? Yes ~ NoD If No, is township: D Organized
D Unorganized
D Unincorporated
Does your organization own the building where the gambling will be conducted?
DYes jg[ No If no, attach (1) the appropriate lawful gambling lease form, and
(2) the sketch of all leased areas with dimensions and square footage clearly defined
A lease and sketch are not required for class D applications.
Name of legal owner of premises Address City State/Zip
(11 O,\~~ C.e../ /0 C 00(\'tv y club) :Ene. ~rl1e 4d'dy"t's5
Address(es} of Storage Space of Gambling Equipment
List all locations where used and unused gambling product is stored. Do not use. a P.O. box number. (Attach an additional
sheet if necessary.)
Address ~ StatelZiD
6lfi 111 f).J {..., '0;//0 ,
3(, .I') .:...... "-' &,1 S InM ..:).5-362-
/tJ'if'/) Milo/v' /:;Ir~ # d 1/11 /) ....11. ~41 /0 ;111 ;..J .s-S 3~:L
. Questions? Call the Licensing Section of the Gambling Control Board at 651-639-4000. If you use a TTY, you can
'=' call the Board by using the Minnesota Relay Service at 1-800--627-3529 and ask to place a call to 651-639-4000. This
form will be made available in alternative format (i.e. large print, Braille) upon request.
,- \
~r-
Premises Permit Application - LG214
Page 2 of 3
1/99
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Bingo Occasions - for Class A or C Permits
If applying for a class A or C permit, enter days and beginning/ending hours of bingo occasions (indicate A.M. or P.M.). No
more than ten bingo occasions may be conducted per week. An occasion must be at least one and one-half hours, not to
exceed four hours.
Day Beainnina/Ending Hours QIDt Beainning/Ending Hours Q.ay Beginning/Ending Hours
to
to
to
to
Gambling Bank Account Information
Bank name
k{,R... ~.s; ~
Bank address
to
to
to
to
to
to
Bank account number.
~
;2 CJ S-:7-. 0
State/Zip code
City
1/()" ft'.;tJ G S r M O~ 1-.\- e II::::: 1M /-...\ ..5-:-5- 3G 2..-
· New organizations: The account number may be obtained and submitted to the Gambling Control Board within
ten days after you receive your premises permit.
Nam!;"aciciress,' and title ,of members authorized tosig" che~~!,Jio~the gamblirlg account.
o~g~nlzatlon'streasurer may 'not handle gambling funds.",,' :';:i' .. . .
,:' :,;::\);;<>;L~~~:^~~,::"
.
Title
Address
/}\o.......,.} cHtlO
/0 v-o (y;/+-o.J ;9 /1< A/i:-
~~......i; '-~ II..:J /:::. t!..
4> I q - .. 1/'<.,'- I'v.... ~ I {
~C;;t:>~- BA 1l.:1-c,.J ,.9/Je ,v V
8,.... k" -r( ~ "^ ,....} 5.:"'-
Name
;9/k",J C/~\/.~/4,...,j}
J
ft\ 4 rz./C. '4 (l.Iu e II
/.. . t I/,'c. I~'
Acknowledgment
Gambling site authorization
I hereby consent that local law enforcement officers, the
board or agents of the board, or the commissioner of
revenue or public safety or agents of the commissioners,
may enter the premises to enforce the law.
Bank records Information
The board is authorized to inspect the bank records of the
gambling account whenever necessary to fulfill
requirements of current gambling rules and law.
Organization license authorization
I hereby authorize the Gambling Control Board to modify
the class of organization license to be consistent with the
class of permit being applied for.
Oath
I declare that:
1. I have read this application and all information submitted
to the board is true, accurate, and complete;
2. all other required information has been fully disclosed;
3. I am the chief executive officer of the organization;
4. I assume full responsibility for the fair and lawful
operation of all activities to be conducted;
5. I will familiarize myself with the laws of Minnesota
governing lawful gambling and rules of the board and
agree, if licensed, to abide by those laws and rules,
including amendments to them;
6. any changes in application information will be submitted
to the board and local unit of government within ten
days of the change; and
7. I understand that failure to provide required information
or providing false or misleading information may result
in the denial or revocation of the license.
.
Signature of chief executive officer (Designee may not sign)
/ /
Date
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Premises Permit Application - LG214
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Page 3 of 3
1/99
Local Unit of Government Acknowledgment and Approval
If the gambling premises is within city limits, the city must sign this application and provide a resolution.
On behalf of the city, I hereby acknowledge this
application for lawful gambling activity at the premises
located within the city's jurisdiction, and that a
resolution specifically approving or denying the
application will be forwarded to the applying
organization.
u r- J11oNJ/cFLlo
f city
~ (d.
Signature of city person I receiving application
Title CnL; ~ /~ II~ lnil- Date 3 l;l I dtf
If the gambling premises is located in a township, both the county and township must sign this application.
The county must provide a resolution.
For the township: On behalf of the township, I
acknowledge that the organization is applying to
conduct lawful gambling activity within the township Print name of township
limits.
A township has no statutory authority to approve or
deny an application (Minn. Stat. sec. 349.213, subd. 2). Signature of township official acknowledging application
.
For the county. On behalf of the county, I hereby
acknowledge this application for lawful gambling
activity at the premises located within the county's
jurisdiction, and that a resolution specifically
approving or denying the application will be forwarded
to the applying organization.
The information requested on this form (and any
attachments) will be used by the Gambling Control Board
(Board) to determine your qualifications to be involved in
lawful gambling activities in Minnesota, and to assist the
Board in conducting a background investigation of you.
You have the right to refuse to supply the information
requested; however, if you refuse to supply this
information, the Board may not be able to determine your
qualifications and, as a consequence, may refuse to issue
you a premises permit. If you supply the information
requested, the Board will be able to process your
application.
This form may require the disclosure of your Social
Security number. If so, your Social Security number will
be used to determine your compliance with the tax laws
of Minnesota. Authorization for requiring your Social
Security number is found at 42 U.S.C. 405 (c)(i).
. Your name and address will be public information when
. received by the Board. All the other information that you
provide will be private data about you until the Board issues
your premises permit. When the Board issues your
Title
Date
I
I
Print name of county
Signature of county personnel receiving application
Title
Date
I
I
premises permit, all of the information that you have
provided to the Board in the process of applying for your
premises permit will become public except for your Social
Security number, which remains private. If the Board does
not issue you a premises permit, all the information you
have provided in the process of applying for a premises
permit remains private, with the exception of your name
and address which will remain public.
Private data about you are available only to the following:
Board members, staff of the Board whose work
assignment requires that they have access to the
information; the Minnesota Department of Public Safety;
the Minnesota Attorney General; the Minnesota
Commissioners of Administration, Finance, and Revenue;
the Minnesota Legislative Auditor, national and
international gambling regulatory agencies; anyone
pursuant to court order; other individuals and agencies
that are specifically authorized by state or federal law to
have access to the information; individuals and agencies
for which law or legal order authorizes a new use or
sharing of information after this Notice was given; and
anyone with your consent.
sf.
Premises Permit Application - LG214, Instructions
1/99
.
Attachments
1. Lease and sketch.
If the gambling premises is leased, attach a copy of:
. the appropriate lawful gambling lease form, and
. the sketch of all leased areas with dimensions and square footage
clearly defined.
Lease forms:
LG221 - Lease for pull-tab, paddlewheels, tipboard, and/or raffie activity.
LG222 - Lease for bingo activity.
LG223 - Lease for pull-tab dispensing device activity.
2. Permit Fee.
For each premises permit application, attach a separate check, payable
to the State of Minnesota, for the appropriate permit fee:
Class A - $400
Class B - $250
Class C - $200
Class D - $150
3. Resolution of Approval.
. The premises permit application must be approved by the local unit of
government (city or county). Attach a copy of the resolution which
shows approval of your application.
. If the local unit of government denies your application, do not submit
the application to the Gambling Control Board.
Where to mail your application Mail your completed application with the attachments to:
Gambling Control Board
Suite 300 South
1711 West County Road B
Roseville. MN 55113
.
Processing
Allow ten weeks for processing the application. Your organization's chief
executive officer will be contacted in writing regarding any missing information.
Term of permit
The expiration date of a premises permit is the same as the expiration date of
your organization's license.
Local ordinances
Check with the local unit of government (city or county) regarding local
ordinances. if any. that apply to lawful gambling. Local ordinances may be
more restrictive than statute or rule.
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City COllncil Agenda -03/13/00
SG. Consideration ofadootine: amendments to Citv/National Guard agreement e:overnin2:
development and operation of the Monticello Community Center.
A. REFERENCE AND BACKGROUND
The City is asked by the National Guard to adopt amendments to the agreement that assist
the National Guard in obtaining Federal Funding to support its share of the project.
According to Dan Greensweig of Kennedy and Graven, the amendments are not suhstantive.
In approving these changes, the City makes no sacrifice in helping out the Guard.
There are some items that statTwould like to see completed before the agreement is signed.
They are noted in the contingencies attached to the motion.
B. ALTERNATIVE ACTIONS
1. Motion to approve amended agreement contingent on resolution of shelving design
issues to the satisfaction ofthe City and National Guard, payment to City for change
orders made to Guard office as requested by the National Guard, Guard agreement
to pay City for legal fees associated with this amendment.
2.
Motion to deny request to amend the agreement.
C. STAFF RECOMMENDATION
Staff recommends Alternative 1.
D. SUPPORTING DATA
Summary of amendments hy Dan Greensweig
Copy of Agreement
470 Pillsbury Center
200 South Sixth Street
Minneapolis MN 55402
(612) 337-9300 telephone
(612) 337-9310 fax
http;//www.kennedy-graven.com
DANIEL J. GREENSWEIG
Attorney at Law
Direct Dial (612) 337-9231
Ernail: dgreensweig@kennedy-gravcn.com
March 10, 2000
Jeff O'Neill
Deputy Administrator
City of Monticello
250 E. Broadway
Monticello, MN 55362
VIA FACSIMILE
and MESSENGER
. Dear Jeff:
Enclosed is the agreement between the city and the armory commission we discussed by telephone.
At the outset let me emphasize that this agreement is merely intended to restructure the original
agreement to facilitate the commission's attempt to obtain additional federal funding. Apparently,
the federal govenunent is used to a different format and will be more likely to fund under the new
document. It is not meant in any way to change any terms of the original deal, as made clear in
Article IX. The only substantive change is that the new agreement will tenninate in 2050 instead of
being for an indefinite term, but the original ability to terminate ifboth parties agree still exists.
Otherwise, the only noticeable changes are some inconsequential modifications to terminology and
the deletion of the language pertaining to construction. Because this new agreement would not take
effect until a certificate of occupancy has been issued for the entire facility, which will presumably
occur when construction is complete, there is no need to set forth how the construction will occur.
Furthermore, to the extent that there are any remaining issues, Article IX of the new agreement
assumes that they will be addressed as under the previous document.
I also spoke with a National Guard representative about the other items that we discussed yesterday.
As to the shelving issue, he was surprised that it was still a problem and said he would do his best to
settle it with the commission's architect unless there were regulations that prohibit using the current
shelves.
,
Secondly, he was unaware of the change order matter and will look into it. Although I may be
ignorant of the details of the situation, the original agreement is clear that the party requesting a
DJG-177378vl
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Jeff O'N eill
March 10, 2000
Page 2 of2
change from the approved construction plans is responsible for paying and resulting costs. I am
therefore hopeful that this will be a simple matter to resolve.
Finally, I raised the question of payment of costs of preparing the new agreement in light of the
commission's request that it be done so it could obtain more federal funding. He will check on this
issue and respond. I should note that the commission prepared an original proposal for our review
but that it quickly became clear that it would be more efficient to work off of the existing agreement
in our firm's system than to try to mark up a completely new document.
My recommendations to the council is that it approve the new agreement as it will substantially
benefit the commission and have virtually no effect on the City. Failure to approve it on the other
hand, will have serious financial consequences for the commission, and though the City would face
little or no legal repercussions from this, it could cause practice problems if the commission's
cooperation was desired in another matter in the future. The final decision, of course, is up to the
council.
I recommend that the council consider approving the agreement to further nonmaterial changes, in
case there is any minor stylistic clean up to the document required before execution. If the council
does approve the new agreement, it may wish to do so contingent on resolution ofthe shelving,
change order, and attorneys fees issues. If so, the council should consider delegating approval of
these three matters to the signers of the agreement, namely the administrators and the managers.
The commission is greatly concerned that waiting an additional two weeks to execute the agreement
will jeopardize its funding and I am optimistic that we can address to these other questions very
quickly.
If you have any questions or need any additional information, please let me know.
Very truly yours,
~.l., . /1 -4' ~
~~4'f'Il/~
Daniel J. Greensweig ~
Cc: Dennis Dalen (w/encl)
DJG:hpw
DJG-177378vl
MN 1 90-78
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LEASE AND OPERATING USE AGREEMENT
By and Between
CITY OF MONTICELLO, MINNESOTA
and
MINNESOTA STATE ARMORY BUILDING COMMISSION
Dated as of:
, 2000
This document was drafted by:
KENNEDY & GRAVEN, CHARTERED
470 Pillsbury Center
200 South Sixth Street
Minneapolis, Minnesota 55402
Telephone: 337-9300
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LEASE AND PROPERTY USE AGREEMENT
This Lease and Operating Agreement is made this _ day of
, 2000, by and between THE CITY OF MONTICELLO, a municipal
corporation under the laws of Minnesota (the "City") and the MINNESOTA STATE
ARMORY BUILDING COMMISSION, a public corporation under the laws of Minnesota
(the "Commission").
WITNESSETH:
WHEREAS, a multipurpose facility has been constructed on a site within the City
(the "Property"); and
WHEREAS, the City and the Commission desire to enter into an agreement
whereby the Commission can operate a National Guard armory facility on the Property and
the City can operate a city hall, community center, and aquatics facility on the Property.
NOW, THEREFORE, in consideration of the promises and the mutual obligations of
the parties hereto, each of them does hereby covenant and agree with the other as follows:
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ARTICLE I
Definitions
Section 1.1. Definitions. In this Agreement, unless a different meaning clearly
appears from the context:
"Agreement" means this Agreement, as the same may be from time to time
modified, amended, or supplemented.
"Annory" means the portion of the Project to be so designated on the Construction
Plans.
"Authority" means the Housing and Redevelopment Authority in and for the City of
Monticello, Minnesota.
"Bond Documents" means the lease, ground lease, indenture, and any other
documents deemed necessary or desirable by the Authority for the issuance of the Bonds.
"Bonds" means the lease revenue bonds to be sold by the Authority for the purpose
of partially financing the Project and any bonds sold to refinance the Bonds or otherwise
replace the Bonds.
"City" means the City of Monticello, Minnesota.
"City Facilities" means the portion of the Project to be so designated on the
Construction Plans.
"City Property Right of First Refusal" means the right of first refusal on Parcel 1
granted by the City to the Commission pursuant to the document recorded with the County
as document number
"Commission" means the Minnesota State Armory Building Commission.
"Commission Property Right of First Refusal" means the right of first refusal on
Parcel 2 granted by the Commission to the City pursuant to the document recorded with the
County as document number
"Construction Plans" means the plans, specifications, drawings, and related
documents pertaining to the project as approved by and on time with the parties as of the
date of this Agreement.
"County" means Wright County, Minnesota.
"Development Agreement" means the development agreement by and between the
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City and the Commission and dated as of
, 1998.
"Event of Default" means an action listed in Article vn of this Agreement
"Maturity Date" means the date that the Bonds have been paid in full, redeemed, or
defeased.
"Parcell" means the real property described on which the City Facilities and the
Shared Facilities will be constructed. After construction of the Project, the term means
Parcel 1 as so improved.
"Parcel 2" means the real property on which the Armory will be constructed. After
construction of the Project, the term means Parcel 2 as so improved.
"Premises" means the second floor of the Armory.
"Project" means construction of a building consisting of a National Guard armory, a
city hall, an aquatics facility, a senior center, a gymnasium, meeting rooms, a parking lot,
and related facilities, all as shown on the Construction Plans, and is comprised of the
Armory, the City Facilities, and the Shared Facilities.
"Property" means the real property comprised of Parcell and Parcel 2.
"Shared Facilities" means the portion of the Project to be so designated on the
Construction Plans.
"State" means the State of Minnesota.
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ARTICLE II
Revresentations and Warranties
Section 2.1. Representations bv the City. The City represents and warrants that it
has the power to enter into this Agreement and carry out its obligations hereunder and has
taken all action necessary to do so.
Section 2.2. Representations and Warranties bv the Commission. The Commission
represents and warrants that it has the power to enter into this Agreement and carry out its
obligations hereunder and has taken all action necessary to do so.
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ARTICLE ill
Status and Use of Propertv:
Consideration: Tenn
Section 3.1. Status of the Property. (a) As of the Effective Date of this Agreement,
Parcel 1 is owned in fee title by the City and Parcel 2 is owned in fee title by the
Commission.
Section 3.2. Environmental and Soil Investigation and Conditions. (a) Except as
described in the report dated September, 1998 and prepared for the City (the
"Environmental Report"), the contents of which the Commission may rely upon, each party
acknowledges that the other party makes no representations or warranties as to the condition
of the soils on the Property or its fitness for construction of the Project, or any part thereof,
or any other purpose for which the parties may make use of the Property.
(b) Each party agrees that it will protect, indemnify, defend, and hold harmless
the other party, and its governing body members, officers, agent.., and employees, and the
Authority and its governing body members, officers, agents, and employees, from any
claims or actions arising out of the presence, if any, of hazardous wastes or pollutants on the
Property to the extent that such presence is caused by the intentional or negligent actions or
failures to act of the indemnifying party. To the extent that such presence is caused by the
acts of or failures to act by third parties, the City and the Commission shall cooperate with
each other in any efforts to pursue recovery from such third parties and shall each pay an
equal share of any remediation not paid by persons not a party to this Agreement, provided
that the parties shall jointly and severally protect, indemnify, defend, and hold harmless the
Authority and its governing body members, officers, agents, and employees from claims and
actions arising from the presence of hazardous wastes or pollutants on the Property and
caused by the acts of or failures to act by third parties. Notwithstanding the foregoing, the
City shall protect, indemnify, defend, and hold harmless the Commission from any claims or
actions arising from hazardous wastes or pollutant.. described in the Environmental Report.
Section 3.3. Lease of Shared Facilities. (a) The City shall at all times have sole
ownership, use, and control of the City Facilities.
(b) The Commission shall at all times have sole ownership, use, and control of
the Armory, except that control of the Premises is subject to the terms of the Lease.
(c) Use of the Shared Facilities shall be in accordance with the following terms
and conditions:
(i) The Commission shall, on or before June 15 of every year provide
the City with a list of days during the October through September
immediately next on which the Commission shall use the Shared Facilities.
In no case shall this list include more than 30 days in any calendar year. On
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those days included on such list, the Commission shall be entitled to sole use
and control of the Shared Facilities, provided that it may in its discretion
pennit the City to also use the Shared Facilities on such days. In addition,
and without limitation of the foregoing, the Commission shall be entitled to
sole use and control of the Shared Facilities at any time in the event that any
emergency declared by proper authority arises which shall make necessary
the use of the Shared Facilities by the military forces of the State; provided
further, that the Commission shall have no liability to the City for damages
arising from ouster or other exclusion of the City from the Shared Facilities
by the Commission during such an emergency.
(ii) The City shall be entitled to sole use and control of the Shared
Facilities on all days on which the Commission is not entitled to use and
control of the Shared Facilities pursuant to Section 3.3(c)(i).
(Hi) During any day on which the City is entitled to sole use and control
of the Shared Facilities pursuant to Section 3.3(c)(ii), or when otherwise
pem1itted by the Commission, the City may rent or lease the Shared
Facilities to any person for a period not to exceed 31 days and shall be
entitled to all lease or rental payments from such person.
(iv) At such times that the Shared Facilities are not being used by the
City, or its tenants or lessees pursuant to Section 3.3(iii) and the Commission
is not otherwise entitled to use the Shared Facilities, the Commission may,
upon notice to the city, use the Shared Facilities for meetings, tours, and
other similar activities, provided that such use is on an occasional,
intennittent basis and the City, in its sole discretion, does not detennine that
such use interferes with its sole use and control of the Shared Facilities.
(v) Nothing in this Agreement shall be construed as in any way limiting
the City's ownership of Parcel 2 or the Shared Facilities, which shall remain
in fee title ownership by the City, except that the Commission may use and
control the Shared Facilities to the extent and only to the extent set forth in
this Section 3.3(c).
Section 3.4. Parking Agreement. (a) The parties to this Agreement have, prior to
the date of this Agreement, executed the Parking Easement. Nothing in this Agreement is
intended to modify any term, right, or obligation of the Parking Easement.
(b) In addition to the rights of the Commission and the City pursuant to the
Parking Easement, the Commission shall have the following parking rights at all times
that the Commission or any other agency or department of the State is a party to this
Agreement:
(i) The Commission shall have the right to store up to five High
Mobility Multi-purpose Wheeled Vehicles ("Humvees") or similar
DJG.171947vl
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military vehicles on the parking facilities on the Property (or at another
place mutually agreed to in writing by the City and the Commission) at a
place and in a manner reasonably satisfactory to the City and the
Commission and to be described in appropriate writings or drawings, the
terms of which shall be deemed incorporated herein upon their approval
by the City and the Commission. The Commission shall have the right to
secure such area in a manner consistent with federal regulations.
(ii) The Commission shall, at all times that it is entitled to use the
Shared Facilities pursuant to Section 3.3(c)(i) of this Agreement, be
entitled to the nonexclusive use of the parking facilities to be constructed
on the Property as part of construction of the Project for the parking of
personal vehicles and other vehicles related to the activities occurring at
the Shared Facilities at the time of the Commission's use of the Shared
Facilities use pursuant to Section 3.3(c)(i) of this Agreement.
Section 3.5. Consideration. In consideration of the obligations hereunder, and in
addition to the mutual promises and obligations contained herein, the City has undertaken
construction of the Project pursuant to the Development Agreement and the Commission
has paid $1,500,000 to the City, receipt of which is hereby acknowledged.
Section 3.6. Term. This Agreement shall terminate as of 11 :59 p.m. on December
31, 2050, unless earlier terminated pursuant to its terms.
DJG-171947vl
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ARTICLE IV
Insurance and Condemnation
Section 4.1. Insurance. (a) At all times prior to the Maturity Date, the parties shall
carry and maintain casualty, public liability, property damage, workers compensation, and
other insurance with respect to the Property and the Project in such amounts and in such
fonns as may be set forth in the Bond Documents. In addition, each party shall comply with
any and all requirements in the Bond Documents regarding the use or uses of proceeds from
such insurance.
(b) Nothing in this Section 4.1 shall be construed as prohibiting either party
from self-insuring to the fullest extent pennitted by law, subject to any contrary
requirements set forth in the Bond Documents.
Section 4.2. Condemnation. At all times prior to the Maturity Date, any awards in
condemnation shall paid and used as set forth in the Bond Documents, except that this
Section 5.2 shall not limit the rights of the City as to the Commission or the Commission as
to the City if one party to this Agreement initiates condemnation proceedings against the
other.
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ARTICLE V
Operations and Maintenance
Section 5.1. Maintenance and Repairs. (a) The City shall be responsible, at its own
expense, for the following routine repair, reconstruction, and maintenance of the exterior
and interior of the Project (except those parts of the Annory that the Commission does not
make accessible to the City), such repair and maintenance to maintain the Shared Facilities
and the portions of the Annory accessible to the City for these purposes in a condition at
least equal to the condition in which the City Facilities are maintained:
(i) janitorial and cleaning services, provided that the Commission shall
return the Shared Facilities to reasonably good condition after using them;
(ii) light bulb replacement, painting, minor carpentry and masonry, and
similar tasks.
(b) Each party shall be responsible for the cost of any repairs or maintenance
required by that party's negligence or misconduct.
(c) Each party acknowledges and agrees that certain nonroutine maintenance
and capital repairs, including but not limited to roof repairs, mechanical repairs, and
plumbing and wiring repairs will be necessary to maintain the Project in a serviceable and
desirable condition. Any repair or reconstruction of the Project estimated to cost more than
$5,000 (the "Major Repair Amount") shall be deemed nonroutine maintenance or capital
repairs for purposes of this Section 5. I (c). (The Major Repair Amount shall be increased,
on the date five years after the date of this Agreement and on each five~year anniversary
date thereafter, by an amount equal to the increase in the Consumer Price Index ("CP!").
The cpr shall mean the "Consumer Price Index - for All Urban Consumers, Minneapolis
Metropolitan Area, All Items (1967 = 100)" as published by the United States Department
of Labor Statistics, or if such index shall be discontinued, the successor index, or if there
shall be no successor index, such comparable index as mutually agreed upon by the parties.
To determine the increase to be calculated under this Section 5.1 (c), the Major Repair
Amount in effect during the preceding five year period shall be multiplied by a percentage
figure, computed from a fraction, the numerator of which shall be the cpr for the third
quarter of the preceding year and the denominator of which shall be the cpr for the third
quarter of the year five years earlier. Such fraction shall be converted to a percentage
equivalent.) Each party therefore agrees that such nonroutine maintenance and capital
repairs will be undertaken upon the earliest of the following: (i) as required by the Bond
Documents; (ii) by mutual agreement of the parties; (iii) when required by federal, state, or
local law, rule, or regulation; or (iv) when deemed reasonably necessary for the continued
OCCupancy and protection of the Project by at least two persons determined by the City, the
Commission, or jointly to be qualified in making the repair or reconstruction in question.
The Commission shall pay 10% of the cost of all nonroutine maintenance or capital repairs
and the City shall pay 90% of the cost of all nonroutine maintenance or capital repairs.
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Section 5.2. Grounds Maintenance and Landscaoing: Snow Removal. The City
shall be responsible, at its own expense, for maintenance of the grounds and landscaping of
the Property and for removal of snow from all parking lots, sidewalks, and other appropriate
areas of the Property.
Section 5.3. Utilities. (a) The City shall be responsible, at its own expense, for
providing or contracting for gas, water, sewer, air conditioning, and solid waste hauling.
(b) The City shall be responsible, at its own expense, for providing electrical
service to the City Facilities and the Shared Facilities and for all charges related thereto.
(c) The Commission shall be responsible, at its own expense, for providing
electrical service to the Armory and for all charges related thereto.
(d) The City may, but is not required to, provide telephone, cable television,
satellite hook-ups, and other communications services to the City Facilities, the Shared
Facilities, and the Premises, at its own expense.
(e) The Commission may, but is not required to, provide telephone, cable
television, satellite hook-ups, and other communication services to the Annory Facilities
(except the Premises) at its own expense.
(f) If either party uses the other party's telephone, satellite hook-ups or other
communication services, it shall first gain consent and shall pay the incremental cost of such
use.
Section 5.4. Fumishincs. (a) The City shall be responsible for furnishing and
supplying the City Facilities and the Shared Facilities and shall have sole use and ownership
of such furnishings and supplies, provided that the Commission may acquire furnishings or
supplies for the Shared Facilities and shall have sole use and ownership of such furnishings
and supplies.
(b) The Commission shall be responsible for furnishing and supplying the
Armory and shall have sole use and ownership of such furnishings and supplies, except that
the City shall be responsible for furnishing and supplying the Premises during the term of
the Lease.
Section 5.5. Payment of Taxes: Special Assessments. The City and the
Commission agree that if all or a portion of the Property or the Project at any time becomes
subject to real estate taxes or special assessments, such taxes and assessments, shall be
allocated between the City and the Commission in the following manner:
(a) Subject to the provisions of Minnesota Statutes, Section 435.19, subd. 2, all
real estate taxes and special assessments properly assessed against or otherwise attributable
to the Annory shall be paid by the Commission.
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(b) All real estate taxes and specials assessments properly assessed against or
othelWise attributable to the City Facilities shall be paid by the City.
(c) All real estate taxes and special assessments properly assessed against or
othelWise attributable to the Shared Facilities shall be paid by the City and the Commission
in the following proportions:
and
(i) Ten percent (10%) of such taxes shall be paid by the Commission;
(ii) Ninety percent (90%) shall be paid by the City.
(d) Notwithstanding the foregoing, if real estate taxes are assessed against all or
a portion of the property or the Project because of the activities of a party to this Agreement
or its successors or assigns, the responsible party shall be solely responsible for such taxes.
Section 5.6. Renc!.!otiation of Operating A!.!reement. (a) Upon the earlier of (i) five
(5) years of the date of this Agreement or (ii) the Maturity Date, and at five (5) year intervals
thereafter, the City and the Commission shall enter into negotiations concerning an
operating agreement intended to extend or amend the provisions of this Article V, such
agreement to include at least the matters set forth in this Article V and to incorporate and
allocate extraordinary costs not reasonably anticipated as of the date of this Agreement.
(b) The terms, conditions, rights, and responsibilities set forth in this Article V
may not be waived, terminated, amended, or superseded prior to the Maturity Date without
the express written consent of the Authority.
(c) The provisions of this Article V shall survive until the earlier of the
termination of this Agreement or, subject to Section 5.6(b), until the complction of the
renegotiation called for in Section 5.6(a), provided that nothing herein shall limit the
obligations of the parties to enter into such renegotiation in good faith.
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ARTICLE VI
Prohibitions Alminst Asshmment and Transfer; Indemnification
Section 6.1. Prohibition Against Transfer and Assignment Prior to Maturitv Date.
Prior to the Maturity Date, neither party has made or created nor shall make or create or
suffer to be made or created any total or partial sale, assignment, conveyance, or lease
(except the State of Minnesota, Department of Military Mfairs, provided that such
transferee or assignee shall be bound by this Agreement) or any trust or power, or transfer in
any other mode or form of or with respect to the Agreement or the Property or the Project or
any part thereof or any interest therein, or any contract or agreement to do any of the same,
without the prior written approval of the other party and the Authority.
Section 6.2. Conditions Of Transfer and Assignment Subsequent to Maturitv Date.
Subsequent to the Maturity Date, the City may sell, assign, convey, or lease Parcell and the
Commission may sell, assign, convey, or lease Parcel 2 and the improvements thereon
subject to the following terms and conditions:
(a) Any such sale, assignment, conveyance, or lease (except a lease or rental of
not more than 31 days) is subject to the rights of first refusal set forth in the City Property
Right of First Refusal and the Commission Property Right of First Refusal (individually,
each a "Right of First Refusal" and collectively, the "Rights of First Refusal").
(h) If the other party to this Agreement does not exercise its rights under the
applicable Right of First Refusal, a party to this Agreement may sell, assign, convey, or
lease all or part of its interest in the Property in accordance with the provisions of the Rights
of First Refusal; provided, however, the terms of this Agreement shall remain binding on the
successor or assignee of the transferring party.
Section 6.3. Right.'\ of First Refusal. Prior to the date of this Agreement, the City
and the Commission executed the Rights of First Refusal. Nothing in this Agreement shall
he construed to modify either or hoth of the Rights of First Refusal.
Section 6.4. Release and Indemnification. In addition to any other release and
indemnification provisions set forth in this Agreement:
(a) The parties to this Agreement agree, now and forever, to indemnify, protect,
and defend each other, and the governing body members, officers, agents, servants and
employees thereof, now or forever, and hold the aforesaid harmless from any claim,
demand, suit, action or other proceeding by any person or entity arising or purportedly
arising from the act or failure to act by the indemnifying party with regard to this
Agreement, the Project, or the Property; provided, however, that nothing in this Agreement
shall be construed to waive any limitations on liability to which the City or the Commission
arc entitled under Minnesota Statutes, Chapter 3, or Chapter 466, or otherwise, except as
between each other; and provided further, that nothing in this Section 6.4(a) shall be
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construed to create any right or entitlement in any person not a party to this Agreement,
except as to the Authority as provided in Section 6.4(b)_ The obligations set forth in this
Section 6.4(a) shall survive termination of this Agreement.
(b) The City and the Commission, respectively, agree, now and forever, to
indemnify, protect, and defend the Authority, and the governing body members, officers,
agents, servants and employees thereof, now or forever, and hold the aforesaid harmless
from any claim, demand, suit, action or other proceeding by any person or entity arising or
purportedly arising from any act or failure to act by the City or the Authority, respectively,
with regard to this Agreement, the Project, or the Property; provided, however, that nothing
in this Section 6.4(b) shall be construed to waive any limitations on liability to which the
City or the Commission are entitled under Minnesota Statutes, Chapter 3, Chapter 466, or
otherwise, except as to the Authority; and provided further, that nothing in this Agreement
shall be construed to create any right or entitlement in any person not a party to this
Agreement, except as to the Authority as provided in this Section 6.4(b). The obligations set
forth in this Section 6.4(b) shall survi ve termination of this Agreement.
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ARTICLE vn
Events of Default
Section 7.1. 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 (unless the context otherwise provides), any failure by any party to observe or
perform any other covenant, condition, obligation, or agreement on its part to be observed or
performed hereunder.
Section 7.2. Remedies on Default. Whenever any Event of Default referred to in
Section 7.1 of this Agreement occurs, the non-defaulting party may exercise its rights under
this Section 7.2 after providing thirty days' written notice to the defaulting party of the
Event of Default, but only subject to Section 8.8(b) of this Agreement and only if the Event
of Default has not been cured within said thirty days or, if the Event of Default is by its
nature incurable within thirty days, the defaulting party does not provide assurances
rea.,<;onably satisfactory to the non-defaulting party that the Event of Default will be cured
and will be cured as soon a.,<; reasonably possible:
(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; and
(b) 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.
Section 7.3. No Remedv Exclusive. No remedy herein conferred upon or reserved
to the City or the Commission in this Agreement 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 either party 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 VII.
Section 7.4. No Additional Waiver Implied bv 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.
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ARTICLE vm
Additional Provisions
Section 8.1. Conflict of Interests: City and Commission Representatives Not
Individuallv Liable. The City and the Commission, to the best of their respective
knowledge, represent and agree that no member, official, or employee of the City or the
Commission shall have any unlawful personal interest, direct or indirect, in this Agreement,
nor shall any such member, official, or employee unlawfully participate in any decision
relating to this Agreement which affects his or her personal interests or the interests of any
corporation, partnership, or association in which he or she is, directly or indirectly,
interested. No member, official, or employee of the City or the Commission shall be
personally liable in the event of any default or breach by the City or the Commission or for
any amount which may become due to any person or on any obligations under the terms of
this Agreement.
Section 8.2. Lease of Armory Soace. (a) Pursuant to the terms and conditions of
this Section 8.2 (the "Lease"), the City shall lease from the Commission and have
exclusive possession of the Premises.
(b) The City shall pay to the Commission an annual rent of $1.00, payable in
advance on or before January 1 of each year this Lease is in effect.
(c) The Lease shall be for a period of one year and shall remain in effect on a
yearly basis, provided that the City may terminate the Lease at any time and for any
reason, or for no reason at all, by providing the Commission with 90 days advance
written notice.
(d) The City may use the Premises for any purpose reasonably related to the
City's normal operations.
(e) The City may, at its sole discretion (subject only to a right of first refusal
identical in terms to the City Property Right of First Refusal), lease, assign, sell, or
otherwise transfer its interest in the Lease to any person.
(e) Except for the Commission's rights under this Section 8.2, the Premises
shall, during the term of the Lease, be considered and treated in all other regards in the
same manner as the remainder of the City Facilities for the purposes of this Agreement,
and the City's responsibilities for the Premises shall be the same for the Premises as it is
for the remainder of the City Facilities.
(1) Notwithstanding anything to the contrary contained in this Agreement, and
not in limitation of any other provision of this Agreement, this Section 8.2 shall survive
any termination of this Agreement and shall be binding on the Commission's successors
and assigns.
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Section 8.3. 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 Property and any such deed shall not be deemed to affect or impair the provisions and
covenants of this Agreement.
Section 8.4. 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 8.5. 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 Commission, is addressed to or delivered personally to the
Commission at 20 West 12th Street, Saint Paul, MN 55155-2098; and
(b) in the case of the City, is addressed to or delivered personally to the City at
City Hall, P.o. Box 1147, Monticello, MN 55362-9245, Attn: City Administrator;
or at such other address with respect to either such party as that party may, from time to
time, designate in writing and forward to the other as provided in this Section.
(c) Prior to the Maturity Date, any notice given or delivered under this
Agreement shall be copied to the Authority at: City Hall, P.O. Box 1147, Monticello, MN
55362-9245, Attn: Executive Director.
Section 8.6. Countemarts. This Agreement may be executed in any number of
counterparts, each of which shall constitute one and the same instrument.
Section 8.7. Recording. The City shall record this Agreement and any amendments
thereto with the Wright County recorder. The City and the Commission shall each pay one-
half the cost for recording.
Section 8.8. Choice of Law and Venue; Alternative Dispute Resolution. (a) 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.
(b) Prior to the commencement by one party of litigation against the other party,
the City and the Commission shall follow the process set forth in this Section 8.8(b):
(i) The City Administrator and the commanding officer stationed at the
Armory shall attempt in good faith to resolve any controversy or claim
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arising out of or relating to this Agreement.
(ii) If the City Administrator and the commanding officer stationed at the
Armory are unable to resolve the controversy or claim, the disputing party
shall give the other party written notice of the dispute. Within twenty days
after receipt of said notice, the receiving party shall submit to the other a
written response. The notice and response shall include a statement of each
party's position and a summary of the evidence and arguments supporting its
position. Representatives of the parties shall meet at a mutually acceptable
time and place within thirty days of the date of the disputing party's notice
and thereafter as often as they reasonably deem necessary to exchange
relevant information and to attempt to resolve the dispute.
(iii) If the matter has not been resolved within sixty days of the disputing
party's notice, or if the party receiving said notice will not meet within thirty
days, either party may initiate mediation of the controversy or claim in
accordance with any mutually satisfactory procedures.
(iv) If the matter ha..'\ not been resolved pursuant to the aforesaid
mediation procedure within sixty days of the initiation of such procedure, or
if either party will not participate in mediation, the parties may mutually
agree to continue negotiations or either party may commence litigation or
take any other action permitted under of this Agreement.
(v) The procedures specified in this section shall he the sole and
exclusive procedures for the resolution of disputes between the parties
arising out of or relating to this agreement; provided, however, that a party
may seek a preliminary injunction or other preliminary jUdicial relief if in its
judgment such action is necessary to avoid irreparable damage. Despite such
action the parties will continue to participate in good faith in the procedures
specified in this section. All applicable statutes of limitation shall be tolled
while the procedures specified in this section are pending. The parties will
take such action, if any, required to effectuate such tolling.
(vi) Nothing in this Section 8.8(h) shall be construed as binding on the
Authority, which may at any time commence litigation or take any other
action it deems necessary to protect its rights under this Agreement,
including without limitation the rights set forth at Section 8.9.
Section 8.9. Third-Partv Rights. Nothing in this Agreement shall he construed to
create any third-party rights in any person not a party to the Agreement; provided, however,
that the Authority shall, at all times prior to the Maturity Date, have the right, but not the
obligation, to enforce any right or obligation granted to either party pursuant to this
Agreement, the Rights of First Refusal, or any other agreement between the City and the
Commission relating to the Project or the Property. The City and the Commission hereby
agree that they may not in any way waive, limit, an1end, modify, or eliminate the Authority's
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rights under this Agreement without the express written consent of the Authority.
Section 8.10. Amendment and Termination of Agreement. (a) During the period
commencing on the earlier of the date the Authority authorizes issuance of the Bonds or the
date on which the City acquires any part of the Property, and terminating on the Maturity
Date, this Agreement may not be terminated, amended, or modified without the mutual
written agreement of the parties and the written approval of the Authority.
(b) Subsequent to the Maturity Date, this Agreement may be modified or
terminated only upon the written agreement of the parties.
Section 8.11. Severability. Any term or provision of this Agreement which is found
to be invalid or unenforceable by a court or other authority of competent jurisdiction will be
ineffective only to the extent of such invalidity or unenforceability and shall not render any
other term or provision of this Agreement invalid or unenforceable.
Section 8.12. Effective Date. This Agreement shall be effective upon the date on
which the entire Project has been certified for occupancy by the City's building official.
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Article IX
Prior Ae:reements
Section 9.1. Prior Agreements. Notwithstanding anything to the contrary in this
Agreement, nothing in this Agreement shall modify any term of the Development
Agreement, and in the case of any apparent or actual conflict between the terms of this
Agreement, and the Development Agreement, the Development Agreement shall prevail.
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IN WITNESS WHEREOF, the parties have caused this Agreement to be duly
executed on or as of the date ftrst above written.
CITY OF MONTICELLO, MINNESOTA
By
Its Mayor
By
Its City Administrator
STATE OF MINNESOTA )
) ss.
COUNlY OF WRIGHT )
The foregoing instrument was acknowledged before me this day of
, 2000 by and
the Mayor and City Administrator of the City of Monticello, Minnesota, on behalf of the
City.
Notary Public
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MINNESOTA STATE ARMORY
BUILDING COMMISSION
By
Its
By
Its
STATE OF MINNESOTA )
) ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this _ day of 2000,
_ by and , the and of the Minnesota
State Armory Building Commission.
Notary Public
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EXHIBIT A
PROPERTY
Parcel 1
NEED LEGAL DESCRIPTION
Parcel 2
NEED LEGAL DESCRIPTION
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Council Agenda - 3/13/00
7.
Consideration of authorization to prepare plans and specifications for the pedestrian
overpass and oathwav project (Project 98-02C) (RW)
A.
REFERENCE AND BACKGROUND:
The purpose ofthis itcm is to consider authorizing the City Engineer to begin preparation of final plans
and specifications for the construction of the County Road 18 pedestrian overpass bridge and pathway
project. The project would entail the construction of a pedestrian overpass bridge and construction of
a connecting pathway from the existing CSAH 75 pathway across 1-94 to the School Boulevard
pathway, then easterly to the Meadow Oaks, Briar Oakes, Eastwood Knoll, and Parkside subdivisions.
This pathway project is a major component of the trail system linking the original ISTEA pathway
along CSAH 75 to newly developed residential and school campus areas.
The City has received approval of federal ISTEA grant funds ($389,000) covering 80% of the original
estimated $486,00 construction costs. Total construction costs do not cover the cost of engineering and
other fees associated with casements and these costs would be the responsibility of the City which
netted an original cost to the city of $204,000. Sincc the time of the original grant application (1997),
the construction costs have increased and are now estimated at $620,000 with $400,000 being for the
bridge and $220,000 for the pathway. The City's share of the total including engineering fees has
increased from $204,000 to $264,000 without the cost of pathway easements. The use of the federal
grant funds require that plans be approved by October 1, 2000, although construction could begin as
late as summer of 200 1.
.
It was originally anticipated that the City's share of the project would be financed by previous budget
contributions ($45,000) plus revenue from a future bond sale to be financed over ten or fifteen years.
We have recently found out that it cannot be included in other 429 projects unless we assess at least
20% of our costs to benefitting property owners. No additional funding was included in our 2000 year
budget and theref()fe if the project is to continue, the Council should indicate where the source of
revenue will come from for this project. There currently is in reserve suHicient funds to cover the city
share if the Council wanted to reallocate a portion of the reserves for this project. To fund this expense
over time, the city could borrow from itself and pay back the principle over time with revenue derived
from an annual tax levy.
.
As noted earlier, the total construction cost is estimated at $620,000 and engineering fees, construction
services and other miscellaneous costs were estimated at $140,000 for a total project cost of $760,000.
If the federal grant is increased to cover 80% of the new construction costs, our engineer estimates the
City's cost of this project would be $264,000. To this cost we need to add the pathway easements we
were rcquired by the County to purchase from Resurrection Lutheran Church along County Road 18
that totaled $26,160 plus any additional pathway easements that may be necessary from Dahlheimer
Distributing, Charlie Pfeffer's property. Resurrection Church and the School District have indicated
they will grant the easements at no charge. More information on possible casement costs associatcd
with the Dahlhcimer and Pheffer property will be available at the meeting. According to our City
Engineer, it has been the past practice of the ISTEA program to increase the grant funds to equal 80%
of the actual eligi ble construction costs which we estimate would require federal grants of $496,000
(801% of $620,000). To date we have only received approval for federal grants totaling $389,000.
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Council Agenda - 3/13/00
Although there is no guarantee that the federal grant will be automatically increased, we have received
word from Kelvin l-lowison, District I II State Aid Engineer that funds should be available to cover the
increase. Iffederal grants are not increased, the City would be responsible for the additional $107,000
in construction costs. The City's portion of this project could mnount to $290,000 plus additional
pathway easement costs and any additional construction dollars not included in the grant.
With construction beginning yet this fall or possibly bidding the project in the winter of 200 1 with
construction next summcr, Council could proceed with the plans and specifications with the City's
share budgeted for in the 2001 budget. lfthe Council does not wish to add the projected cost to next
ycar's budget, and the project is to proceed, the other source would be to take the funding from existing
reserves. Funds arc available in the capital outlay fund but these funds have been previously
earmarkcd for other projects. If the Council wishes to use reserve funds rather than consider
budgeting for this cost next year, we should determine which projects will be deleted from the capital
outlay fund in the future so that these funds are not counted on by various departments. It should also
be noted that $45,000 was budgeted in 1996, 1997 and 1998 towards the eventual construction of this
project. Also, the Briar Oakes development contributed funds via assessment to build this pathway
along its northern border, so additional resources may only be needed for approximately $245,000
plus any additional easement cost or increase in construction costs. The Council may want to consider
funding this projcct by using partial reserves and adding the balance needed to the 2001 budget.
Capital outlay items that have been budgeted for in the capital outlay fund that have not yet been spent
include $80,000 for River Park enhancements that have not specifically been identified yet and some
funds arc still available from the 1998 Klein Farms park improvement budget.
.
The project budget as outlined by the City Engineer identifies engineering design and construction
services along with miscellaneous services totaling an estimated $136,000 which amounts to a
proposed estimated 12% for design services and 10% for inspection/survey services. If this project
was designed under our current engineering agreement for projects of average complexity, the design
fee would be in the 6.75% to 7% range rather than almost 12% when you include other outside
services and consultants hired by the engineer. Even using the fee schedule for projects of above
average complexity, the design fee would normally be around 8.25%. While I understand that there
may be additional engineering fees associated with a federal project, the fee proposed is even higher
than their schedule indicates for above average complexity projects. The City Engineer may have
additional information to provide to the Council to support their request for fee reimbursement that is
higher than our contract would normally indicate.
B.
AL TERNA TIVE ACTIONS:
I.
First alternative would be to authorize the engineer to prepare plans and specifications for the
bridge and pathway project as outlined in their scope of services under the fee arrangement as
requested.
.
"-
Under this alternative the City would be responsible for approximately $290,000 of the project
costs plus any additional pathway easements that may be necessary plus any additional
construction costs that are not covered by the ISTEA grant (currently $107,000). Electing
also with this alternative, Council should indicate what the preferred funding mechanism
would be for this project, i.e. use of capital outlay reserve funds, including City's cost in next
.
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Council Agenda - 3/13/00
years budget or a combination of both.
2.
The Council could wait to authorize preparation of plans and specifications until it can
determine whether there is additional costs for easements and whether the ISTEA funding will
be increased to cover the higher construction cost estimate.
According to the City Engineer, the project needs to be started as soon as possible if it is going
to meet the October 1st deadline and receiving a guarantee of additional federal funding may not
be able to be accomplished until the project is completed.
3. Do not authorize preparation of plans and specifications at this time.
This project has been in the planning stages for years with residents in the affected subdivisions
and the School District patiently waiting for completion of this bridge and pathway system
designed to provide an avenue for safe travel between neighborhoods and school. This is a
necessary project that if not done today due to cost will not likely be done in the future when
federal dollars are not available.
C. STAFF RECOMMENDATION:
The reasons why the grant was approved yesterday remain true today. The pathway and trail are not
luxuries but a critical link providing a safe avenue for children in an area of high traffic. If Council
agrees that this is a necessary project and the cost is worth the benefit and if Council would like
Federal funding to assist with development ofthis system, then a funding source needs to be identified
for the City's portion. As was the case with the Highway 25 project and the County Road 75
improvement, the engineering fees proposed for this project do not appear to fall within the
engineering agreement we have. If a funding source for the City's portion can be identified, it is the
City Administrator's recommendation that the project plans and specifications be authorized.
D. SUPPORTING DATA:
. WSB, Inc. letter and scope of services proposal
. List of potential capital outlay funds
.
.
.
350 Westwood Lake Office
8441 Wayzata Boulevard
Minneapolis, MN 55426
B.A. Mittelsteadt. P.E.
Btet A. Weiss, P.E.
Petet R. Willenbring, P.E.
Donald W. Sterna, P.E.
Ronald B. Bray, P.E.
612-541-4800
FAX 541-1700
February 14, 2000
Mr. Rick Wolfsteller
City of Monticello
505 Walnut Street, Suite 1
Monticello, MN 55362-1147
Re: CSAH 18 Pedestrian Overpass and Pathway Project
WSB Project No. 1125.00
Dear Mr. W olfsteller:
Attached to this letter is our scope of services for providing final design and construction services for
the pedestrian overpass and pathway project. We have also included a preliminary cost estimate for
the project in the total amount of $620,000. Our scope of services describes the final design and
construction services for the project. Attached to the scope of services in Exhibit A is a summary of
the engineering fees for the preliminary design, environmental documentation, final design of the
pathway and bridge, and construction services for full-time bridge inspection during the construction
phase. The pages following the summary page in Exhibit A show more detail on how the fees were
calculated.
The scope of services includes additional requirements as a result of the federal grant process. These
items include:
· Environmental documentation
· Added plan requirements and review
· Federal documentation for design and construction
· Full-time bridge observation
Exhibit B summarizes additional services which are not included in preliminary design, final design,
and construction services. These costs include items such as surveying, cultural resource survey,
bridge type study, geotechnical investigation, and right-of-way exhibits and legal descriptions for
property acquisition.
Exhibit C is the project budget, which is a reprint of the project budget sheet used in the application
for Transportation Enhancement Funding for the project. All of the numbers have been revised to
take into account the revised construction estimate and the preliminary design, final design, and
construction services cost associated with the project. At this time, there are no costs listed for land
acquisition.
Minneapolis · St. Cloud
Infrastructure Engineers Planners
EQUAL OPPORTUNITY EMPLCYER
F:IWPWIN\112S001021400-RW.wpd
l
.
.
,
Mr. Rick Wolfsteller
City of Monticello
February 14, 2000
Page 2
The use of the euhaueement (Federal Grant) fnnding reqnires the plans he approved by
October 1,2000. Construction could begin in the fall of2000 (i.e. September) or be perfonned in
the summer of2001 with a letting in the winter of2000/2001.
It is imperative that the Design Snrveys and Soils Investigation (Geotechnical) be anthorized
immediately in the amounts of $1,900 and $4,200 for a total of $6,1 00.
The right-of-way acquisition costs are not included in the attached costs. It is anticipated that the
necessary easements from the church, Dahlheimer, Pfeffer, and the school will be negotiated at little
to no cost to the City.
Please let me know if you have any other questions or comments.
Sincerely,
WSB & Associates, Inc.
P1;tr/ ~
~~tl~
JeffW. Stewart, P.E.
Project Manager
Bret A. Weiss, P.E.
Vice President
c: John Simola, City of Monticello
Jeff O'Neill, City of Monticello
Enclosures
kdlnm
F:IWPWINII11S.OO\021400.RW.",pd
1
· EXHIBIT C
Project Budget
CSAH 18 Pedestrian Bridge Overpass and Pathway Project
Monticello, Minnesota
S.P.222-090-01
Federal Project No. TEA 8600 (126)
WSB Project No. 1125.00
ITEMS ELIGIBLE FOR REIl'v1BURSEMENT:
Construction Item--grading, paving, etc.
Bridge
Pathway
LINE A: TOTAL
Amount
$400,000.00
220,000.00
$620,000.00
ITEMS NOT ELIGIBLE FOR REIMBURSEMENT:
Ineligible Land Acquisition -- appraisal fees, legal fees, etc.
Land Acquisition
Appraisals, legals, etc.
. Line B: TOTAL
Amount
$0.00
3,472.00 Not Completed
$3,472.00
Administrative Costs -- preliminary and construction engineering
Design Services
Construction Services
Miscellaneous Services
1) Path Field Survey
2) Cultural Resource Survey - The 106 Group
3) Bridge Study - Wells Engineering
4) Bridge Field Survey
5) Bridge Geotechnical
Line C: TOTAL
Amount
$62,067.13 Partially Completed
57,768.00 Not Completed
4,191.25 Completed
2,015.00 Completed
4,745.00 Completed
1,896.00 Not Completed
4,200.00 Not Completed
$136,882.38
-
Total cost of proposed project: LINES A, B, AND C TOTALED
Items not eligible for enhancement funding: LINE B AND C TOTALS
Total of eligible costs (minimum of$lOO,OOO): LINE A TOTAL
Applicant's contribution towards eligible enhancement project costs (20%):
.Total amount requested in enhancement funds (No.3 minus No.4):
-.. Total amount contributed by applicant:
$760,354.38
140,354.38
620,000.00
124,000.00
$496,000.00
$264,354.38
F:\wpwin\proposal\085 .99\CSAH ISPedPathRFP
1 of I
2/14/00 1
.......-,.
EXHIBIT A
WSB Design and Construction Costs
CSAH 18 Pedestrian Bridge Overpass and Pathway Project
Monticello, Minnesota
S.P.222-090-01
Federal Project No. TEA 8600 (126)
WSB Project No. 1125.00
Task Description
Amount
Preliminary DesignlEnvironmenta1 Documentation
Pathway Design
Bridge Design
Subtotal Design
$14,966.13
$15,895.00
$31,206.00
$62,067.13
Construction Services Bridge Overpass and Pathway
$57,768.00
.", TOTAL
9
$119,835.13
....
F:\wpwin\proposal\085.99\CSAH18PedPathRFP
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2/14/00
I
.
.
.
City Council Agenda -03/13/00
8.
Consideration of a request for a conditional use permit allowing open sales as an
accessory use in the B-4. Regional Business District. Applicant: Scott Rolfe. Skippers
Pools & Spas.
A. REFERENCE AND BACKGROUND
Scott Rolfe, representing Skippers Pools and Spas, and the HRA are requesting a renewal of
the conditional use permit allowing outside sales at 101 W. Broadway. As you may recall,
the city granted a CUP on 5/11/98 which was intended for summer display only. Due to the
fact that there has been some problems with the unauthorized use of the property for outside
storage and hecause an expiration date was set, it is appropriate to require a renewal.
Scott Rolfe is aware of the concerns regarding outside storage mld has indicated the he will
comply with the terms of the permit in the future. The HRA has also indicated that they will
monitor the use of their property.
New this year is the request to fill the pools which goes against one of the previous
conditions of approval. Does the Planning Commission wish to approve this request with
water in the pools? See the HRA meeting minutes for information regarding this facet of the
request.
The Plmming Commission recommended approval of this CUP subject to the conditions
below.
B. ALTERNATIVE ACTIONS
1. Motion to recommend approval of the conditional use permit allowing outdoor
display and sales subject to the following conditions:
1. Entering into a satisfactory lease arrangement with the HRA that includes a
hold harmless and indemnification clause protecting the City against lawsuits
associated with display of pools filled with water.
2. All lighting must be directed away from the public right-of-way.
3. Parking stalls must be clearly striped and marked.
4. No permanent or temporary signs shall be erected on the outdoor display.
5.
Any swimming pool or spa displayed outdoors must be provided with a
continuous surrounding barrier to prevent entry.
6.
Outdoor swimming pool or spa displays may contain water for structural
reasons. but must be securely covered during night time or non-business hours.
.
City Council Agenda -03/13/00
7.
All items shall be removed by August 31, 2000. No outside storage allowed
under this permit.
8. The conditional use permit shall be seasonal from April through August 31,
2000.
Motion is based on the finding that the proposed outdoor display and sales use is connccted
with thc principal use and limited to no more than 30% of the gross floor area of the principal
usc; is compatible with the comprehensive plan and the geographical area and character of
the surrounding area; is justified by a demonstrated need for sLlch use; and does not
substantially depreciate the area in which it is proposed.
If this alternative is selected, the HRA and applicant will begin developing a new lease
agreement.
2. Motion to recommend denial of the conditional use permit allowing outdoor display
and sales.
.
As you will see in the correspondence between the BRA and Rolfe, there were some
problems in getting Rolfe to comply with requests to remove outside storage. Council may
wish to deny the CUP based on the problems experienced in gaining compliance from Rolfe.
At the Planning Commission meeting, Council Liaison Herbst indicated his concern about
rcnewing the CUP given the track record.
3. Motion to table any action, pending additional information.
c. STAFF RECOMMENDATION
Staff recommcnds Alternati ve 1.
D. SUPPORTING DATA
City COLlncil agenda item of 5/11/98
Enf(Jrcement letters from lIRA re: storage
Lettcr from Scott Rolfe to HRA re: outsidc storage
Summary of the BRA meeting minutes from 3/1100
.
.
.
I
qq- Of d.-
Council Minutes - 5/11/98
6.
Consideration of items removed from the consent aeenda for discussion.
5E. Consideration of a conditional use -permit allowim! open sales as an accessory use
in the B-4. Regional Business District. Location: 101 West Broadway. Lots 9 &
10. Block 52 Original Plat. Applicant: Scott Rolfe. SIqp-pers Pool's and Spas.
Councilmember Brian Stumpf requested clarification of the proposal for an
outdoor display and sale of swimming pool products by Skippers Pools and Spas
on the HRA' s property. He noted his concern regarding issuance of a conditional
use permit for a parcel that may be sold in the future. Economic Development
Director Ollie Koropchak reported that the HRA's motion included a termination
date of August 31, 1998, for use of the property.
A MOTION WAS MADE BY BRIAN STUMPF AND SECONDED BY BRUCE
THIELEN TO APPROVE THE CONDITIONAL USE PERMIT ALLOWING OUTDOOR
DISPLAY AND SALES SUBJECT TO THE FOLLOWING CONDITIONS:
1. ENTERING INTO A SATISFACTORY LEASE ARRANGEMENT WITH THE
BRA.
2. ALL LIGHTING MUST BE DIRECTED AWAY FROM THE PUBLIC RIGHT-
OF-WAY.
3.
PARKING STALLS MUST BE CLEARLY STRIPED AND MARKED.
4. NO PERMANENT OR TEMPORARY SIGNS SHALL BE ERECTED ON THE
OUTDOOR DISPLAY.
5. ANY SWIMMING POOL OR SPA DISPLAYED OUTDOORS MUST BE
PROVIDED WITH A CONTINUOUS SURROUNDING BARRIER TO
PREVENT ENTRY.
6. OUTDOOR SWIMMING POOL OR SPA DISPLAYS MUST NOT CONTAIN
ANY WATER.
7. THE CONDITIONAL USE PERMIT SHALL EXPIRE AUGUST 31, 1998. PER
THE HRA.
Motion is based on the finding that the proposed outdoor display and sales use is
connected with the principal use and limited to no more than 30% of the gross
floor area of the principal use; is compatible with the comprehensive plan and the
geographical area and character of the surrounding area; is justified by a
demonstrated need for such use; and does not substantially depreciate the area in
which it is proposed. Motion carried unanimously.
.1
December 17, 1999
MONTICELLO
Scott and Amy Rolfe
Skipper's Pool & Spa
101 West Broadway
P.O. Box 1234
Monticello, .MN 55362
Re: Use of BRA lot on West Broadway
Dear Scott and Amy:
At the Housing and Redevelopment Authority meeting of December 1, 1999, the COmmissioners
noted debris was being stored on the BRA lot. The Commissioners recalled the BRA granted
Skipper's Pool & Spa the use of the BRA lot for display pUrposes only at no cost. The
Commissioners requested the user be notified to remove the debris stored outside on their lot.
.
On December 10, the City Building Inspector and myself stopped by Skipper's Pool & Spa and
spoke with Amy relating to removal of the debris from the BRA lot per the request of the BRA
Commissioners. On a follow-up inspection of December 17, the Building Inspector and myself
noted the debris still remained on the BRA lot.
Per the request of the Commissioners, please remove the stored debris from the BRA lot to
conform with the granted use of the property: For display purposes only.
Thank you for your immediate attention of this matter. Should you have any questions, please
call me at 271-3208.
Respectfully,
HOUSING AND REDEVELOP~ AU1RORlTY
IN" AND FOR TIm CITY OF MONTICELLO, lVIINNESOT A
a~ \<"'tQ ~J2~
Ollie Koropchak
Executive Director
.
c;
File
Monticello City Hall. 250 E. Broadway, PO Box 1147, Monticello, MN 55362-9245. (612) 295-2711. Fax: (612) 295-4404
Office of Public Works. 909 Golf Course Rd., Monticello, MN 55362. (612) 295.3170. Fax: (612) 271-3272
~
,I
,
}
January 10,2000
.
~
MONTICELLO
Scott and Amy Rolfe
Skipper's Pool & Spa
101 West Broadway
P.O. Box 1234
Monticello, MN 55362
Re: Use ofHRA lot on West Broadway
Dear Scott and Amy:
After our telephone conversation of January 3, 2000, I relayed your message to the HRA
Commissioners at their January 5 meeting that two trailers and dismantled display materials
covered by a blue canvas remain within the fenced area of the BRA lot along West Broadway.
The BRA Commissioners remain consistent with their original approval which granted Skipper's
Pool & Spa the use of the BRA lot for the purpose of display only. They reaffinned their request
for all stored materials to be removed from the parcel.
.
Should you have any questions, please call me at 271-3208. For your information the next BRA
meeting is February 2,2000, 7:00 p.m. at the City Hall, 505 Walnut Street.
Sincerely,
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO, MINNESOTA
a ~ '\<C1\ o~~~
Ollie Koropchak
Executive Director
c: Planning Commission t../'
File
.
Monticello City Hall, 250 E. Broadway. PO Box 1147, Monticello, MN 55362-9245. (612) 295-2711. Fax: (612) 295-4404
Office of Public Works. 909 Golf Course Rd.. Monticello, MN 55362. (612) 295-3170. Fax: (612) 271-3272
.#
,I
,
}
January 10,2000
(-
MI
MONTICELLO
Scott and Amy Rolfe
Skipper's Pool & Spa
101 West Broadway
P.O. Box 1234
Monticello, M:N 55362
Re: Use ofHRA lot on West Broadway
Dear Scott and Amy:
After our telephone conversation of January 3,2000, I relayed your message to the BRA
COmmissioners at their January 5 meeting that two trailers and dismantled display materials
covered by a blue canvas remain within the fenced area of the BRA lot along West Broadway.
. The HRA Commissioners remain consistent with their original approval which granted Skipper's
Pool & Spa the use of the HRA lot for the purpose of display only. They reaffirmed their request
for all stored materials to be removed from the parcel.
Should you have any questions, please call me at 271-3208. For your information the next HRA
meeting is February 2,2000, 7:00 p.m. at the City Hall, 505 Walnut Street.
Sincerely,
HOUSING AND REDEVELOPMENT AU1HORITY
IN AND FOR TIIE CITY OF MONTICELLO, MlNNESOT A
o~ \<CI\o~~L~ _
Ollie Koropchak
Executive Director
C: Planning Commission c.-""
File
,
Monticello City Hall. 250 E. Broadway. PO Box 1147. Monticello. MN 55362.9245. (612) 295-2711 . Fax: (612) 295.4404
Office of Public Works. 909 Golf Course Rd.. Monticello. MN 55362. (612) 295-3170. Fax: (612) 271.3272
..<
Skipper's Pools &; Spas
101 W. Broadway
P.O. Box 1234
Monticello, MN 55362
Skipper's Pools & Spas
o ~~~D\',f~ n
FEB 11 2000 U
February 7, 2000
lIRA Office
505 Walnut Street
Suite #1
Monticello, MN 55362-831
Dear Ollie:
I would like to take this opportunity to say Thank You for taking the time to visit our store and bring
to our attention the concerns of the lIRA Committee. At this time, I believe we have cleared the area
to the satisfaction of the Commissioners.
I apologize for not understanding the original use permit and hope we can continue to use the lot in
the future for the same use as was originally intended I have submitted a new conditional use permit
application to the City for approval and can be available for any questions the BRA or the City may
have concerning this issue. Should you have any questions please call me at 295-5779
Again, Thank You and please notify me if I can be of any service to the HRA and its staff.
.
~~
Scott Rolfe
Owner
........................
.,
.
.
.
SKIPPER'S POOLS & SPAS
HRA Motion of March 1, 2000
relative to use of the HRA lot
The HRA approved a motion authorizing the lIRA Attorney to draft a Lease Agreement between
Skipper's Pools & Spas (Scott and Amy Rolfe) and the BRA for the northerly portion of the
parcel described as LTS 7 & 8 BLK 52 EX SEL Y 16.50 FT ofSWL Y 90 FT ofLT 8, subject to
approval of the conditional use permit by the Planning COmmission and City Council. Terms of
the agreement to include but not limited to: Lease rate equal to costs associated with preparation
of the agreement, lease for display purposes only, 60-day right to terminate lease, indemnification
ofHR.A, six-month lease with termination date as of September 1,2000, all pools filled with
water shall be Covered each night, and/or other terms as defined by the Attorney.
The motion passed on a three to two vote. Two members voting against the motion were
concerned with the HRA's liability due to the three pools for display being filled with water.
Scott Rolfe was requested to attend the August meeting of the HRA for an assessment of the 6-
month use.
.
.
.
City Council Agenda -03/13/00
9.
Consideration oran amendment to the Zonin~ MaD to rezone a Darcel from I-lA. Li!!ht
Industrial to R-3. Multiple Family Residential. Applicant: Gus LaFromboise.
A. REFERENCE AND BACKGROUND:
Gus LaFramboise has applied for a rezoning of property along between 7th Street and
Interstate 94. The property is currently zoned I-lA, and abuts an undeveloped industrial
parcel to the west, and an apartment complex zoned PZM to the east. There is R-3 zoning
to the north across 7th Street.
At the edges of zoning districts, there is often no clear direction as to whether a parcel should
be one zone or the other. The issues to consider in this case would be policy and features of
the land. The land itself lies at a slightly lower elevation than the adjoining industrial
parcels. In its present state, it would be viewed as being more closely related to the adjoining
apartment site in terms of topography.
From a policy standpoint, however, the City has protected its supply of industrial land. The
Comprehensive Plan goals list industrial development as a major objective of the City,
particularly higher end industry. The property in question has a great deal of freeway
exposure, making it an attractive industrial site for many purposes. The freeway exposure
tends to degrade the property as a residential property.
Intensively developed, an industrial site would likely generate slightly less total traffic than
a multiple family project, depending on the type of projects. This aspect may be a benefit
to thc long-term traffic capacity of 7th Street, especially at the intersection with Highway 25.
As a residential site, the property would create a number of issues. The exposure to the
freeway is one, as is the continued concentration of higher density housing in a single are of
the community. Staff would be concerned about project quality of a multiple family
development due to these tactors.
The Planning Commission conducted the public hearing and recommends Alternative
2 below.
B. ALTERNA TIVE ACTIONS
1. Motion to recommend approval of the rezoning from I -I A to R-3, based on a finding
that there is adjoining land which is developed in with multiple family residential.
2.
Motion to recommend denial of the rezoning, based on a finding that the
Comprehensive Plan calls for a preservation of industrial land. and the freeway
exposure would negatively impact a multiple family project.
.
City Council Agenda -03/13/00
"
-'-
Motion to table action on the rezoning, pending additional information.
C. STAFF RECOMMENDATION
Staff does not recommend thc rezoning. Although the lay of the land would seem to relate
it to the adjacent multiple family residential area more than to the industrial land to the west,
there arc a number of negatives with residential development along freeways which tend to
limit their long-term quality. These negatives are positives fi)r industrial, especially freeway
exposure. Because the Comprehensive Plan encourages the protection of quality industrial
land, and because freeway exposure is a problem for multiple family development, statT
recommends Alternative 2.
D. SUPPORTING DATA
Exhibit A - Zoning Map
.
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COUNCIL UPDATE
March 13,2000
Update on Potential Salc of Senior Citizen Building - Dennis Anderson: (R W)
In November 1999, the Council accepted an offer from Mr.Dennis Anderson for the purchase of the
senior citizens building at a price of $130,000. Mr. Anderson had originally proposed to use the
facility for a laundromat but changed his plans and indicated a desire to remodel it into an office
building. With the seniors recently vacating the property and relocating into the new community
center, finalizing the sale of the property could take place at any time.
Recently Mr. Anderson has indicated a desire to change his proposed use of the huilding from an office
building to a private rental facility for family and business functions. Mr. Anderson feels there would
be a benefit to the downtown area by having this facility available for business and family functions hy
remodeling the huilding into an old fashioned ree room/family room type of facility versus simply a
banquet hall for rent.
One of the concerns staff has previously noted with this huilding is the limited parking that is available
on site. The Council supported the sale of the building for an office use originally because the parking
requirement did not seem to be greater than what was presently occurring through the senior citizens
use. On a normal day, the senior citizens usage was probably a dozen or less cars unless they had a
birthday or anniversary dinner function which then created a larger demand during the daytime. Mr.
Anderson feels his use would not be any more intense than the senior citizen center usage hut the
parking requirement would likely occur more in the evening and on weekends than during the day.
That is not to say that the huilding wouldn't be used for business functions during the day time hours,
but it is likely that usage for family events would like occur in the evenings or on Saturdays or
Sundays.
In discussing this proposed usage with our City Planner, Steve Grittman, he did note some concerns on
the parking with this change of use. Since the Council had originally accepted the oUer assuming it
was going to he converted to office use, I wanted the Council to be aware of Mr. Anderson's proposal
prior to the sale being completed. If the Council feels the proposed usage as a rental facility would fall
in line with our CCD District zoning classification, the only issue really relates to whether the
Council feels there is enough change in use to affect parking problems in the area.
Please note that under such circumstances where a change of use will bring additional parking demand,
and no parking is availahle, the City would be requiring that additional stalls be developed, or the
owner has the option of providing $1,000 per parking stall. The deficiency is difficult to estimate but
would he derived from taking the demand for spaces generated by the senior center, minus the demand
generated by the new use. An estimate of stall deficiency has not yet heen prepared but it could be as
many as 25-35 spaces. Council should consider the precedent that is set if it waives thc parking
requiremcnt when selling property that the City owns.
On a final note, the appraisals we obtained {(Jr the property were in the $160,000-$190,000 range and I
believe the Council accepted Mr. Anderson's lower offer recognizing that the parking availability on
site supported a reduced value.
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I f the Council is comfortable with M r. Anderson's change in use, stall will proceed with getting the
title work brought up to date and completing the sale as soon as possible. If the Council feels this use
needs to be evaluated further because of the parking that may be necessary for such a use, this concern
should be relayed to Mr. Anderson before the sale is completed.
Attached is an outline of Mr. Anderson's proposal for the facility and some comments he has for the
concept.
Attachment: Proposal dated 3/] /2000
-. March 1, 2000
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Rick Wolfsteller
City or Monticello
Dear Rick,
I am submitting, per your request the following plans for the Senior Center Building:
We plan to use the building for a private rental facility for family and business functions.
This facility could be "one of a kind" for Monticello because of the following.
1. Interior decor-generous use of sofa's, plants, lighting and tables, etc to
resemble a luxury family room in a million dollar mansion.
2. Create a warm and luxurious atmosphere thru the use of dark woods and
traditional decor.
3. Walls will be accented with actual photographs of the community and also
portraits of senior citizens.
4. Existing cabinetry believed to be 100 years old now on premises must be
preserved and restored for everyone to see and share. (Came from old
Monticello cafe)
5. Small kitchen & bar for private use, small dance floor and gas fireplace to be
added.
. We sincerely believe that this concept would be the very best use for the entire
community based on the following reasons.
1. It's a business based on fun and entertainment that we desperately need in
downtown.
2. It will certainly bring people (some from other areas) into downtown
Monticello and should have some positive effect on their businesses as well.
3. This building (if done to perfection) will help improve the image of downtown
and will add another success story.
4. The Senior citizens and the entire population of Monticello will still be able to
come back and enjoy the building because of the rental program.
As you know, Rick, we have discussed many ideas-----office space? Nothing exciting for
Monticello. Laundry? We have a nice laundry now and wouldn't add to the community.
The Senior Center Building has been used for social gatherings and entertainment for the
past 25 plus years and I want to keep the usage exactly the same.
.
Best RegardS/). .~
(;\t1....d V'
~.~~.
Dennis Anderson
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COUNCIL UPDATE
Mareh 13, 2000
Uodate on Personal Prooertv Tax Le1;islation. (RW)
Attached for your information is a copy of a recent memo I received from the Coalition of Utility
Cities lobbyist, Tim Flaherty and John Hofland regarding the present status of the personal property tax
elimination debate. As you will note in the memo, it doesn't appear that legislators are interested in
tackling this problem this session, but it is the coalition's intent to still introduce our bill that
Mr. Flaherty discussed previously with the Council. Our proposed legislation would simply leave the
tax structure as it is and allow NSP to get a refund from the Department of Revenue for any personal
property taxes they pay.
I have also attached a copy of NSP's response to our proposed solution and also a copy of our
lobbyist's response to NSP's letter. As you can see, NSP doesn't want to take any risks in getting the
state to rebate taxes every year and likewise, that has been the cities concern all along that if state aid is
used to replace our lost revenue, we are uncomfortable with that being the guarantee.
Should you have any questions regarding the coalition dlorts or thc letters in general, feel free to give
me a call. Otherwise, the memo and letters should keep you up to date on where we are at this point.
Attachments :Memo
Letters
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MA R. ' 7. 2000 10: 53 PM
011 16512259088
FLAHER1Y & AsSOCIATES
Professional Association
NO. 1386 P. 1
MEMO
UM
To:
Coalition of Utility Cities Memb rs
From:
Tim Flaherty &: John Hofland
Date:
March 8. 2000
Re:
Legislative Session Update
_..~__.______ ..~__w____.--
One month into the legislative session, lc&islato are not expressing any interest in addressing
the personal property taX on &eneration machi . We met early in the session with Senate Tax
Chair Doug Johnson (OFL- Tower) and he said h has no interest in dealing with the issue this
year. The Leiislature seems content to let the D partment of Revenue study run its course and
look at the issue as part of electric utility restruc . g and property taX ref om, which are both
expected to be debated next session. However, fficials at the Department of Commerce have
recently indicated that electric utility re may be delayed because telecommunications
restructuring is unlikely to be passed this sessio by the. Legislature, which would push back the
electric utility restructuring debate.
We still plan on having our personal property legislation introduced this session so that the
host communities' proposal is on the public reco d. We will not request a hearing, and will
probably wait to introduce the legislation until end of the legislative session. Attached is a
copy of a letter we received from NSP inforrnin us that they cannot support our proposaL Also
attached is our response to some of the assertio they made in their letter.
The Coalition of Utility Counties is also havina eir proposal drafted into legislation. The
counties have infonned us that the first draft con . ns a number of en-ors and that they are having
it redrafted. We will fax out a copy aftheir dr legislation after the revisions have been made.
We will try and coordinate with the counties so at our legislation is introduced about the same
time.
Other Utilitv Le~islatioD
HF2700 (Davida)JSF2419 (Scheevel) - This leg slation seeks a personal property tax exemption
for Great River Energy's proposed peaking facili in Elk River. The bill has been heard by both
the Senate and House tax committees and is bein considered. far possible inclusion in the
omnibus tax. bill in both houses. It will likely be' both tax bills. During the House hearing,
444 Cedar Street. Suite 1200 . Piper Jaffray Plua. St. aul, MN 55101 . (6$1) 225-8840. Pax (651) 225~9088
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MAR. ,7.2000 10:53PM
011 16512259088
NO. 1386 P. 2
Rep. Jennings asked the county commissioners who were testifying on behalf of the bill about
their support for the exemption compared to the position of the Association of Minnesota
Counties. The commissioners did a good job of distinguishing between this peaking facility and
base load facilities that are in current host cities and counties.
HF2996 (Wolf)/SF3337 (Johnson, D.H.) - This legislation requires electric utilities to begin
separating the cost of generation, transmission, and distribution on customer bills by July I,
2001. The bill also calls for a study of environmental impacts and the reliability of Minnesota's
power supply. An amendment was discussed in the House Regulated Industries Subcommittee
hearing that would have required utilities to also report the cost of personal and real property
taxes on customer bills. The amendment was offered by Rep. Jennings, but was withdrawn
because it was not supported by the author. The bill has passed out of the necessary committees
and has been sent to the House floor. The bill will be heard in the Senate this Friday, March 10,
and it is unclear if a similar amendment dealing with property taxes will be offered in the Senate.
As of now, there are no plans to schedule a eue meeting during the session. We will keep
members updated via faxes and will not call a meeting unless the Legislature deviates from its
current position of waiting to address the personal property tax next year.
The next Department of Revenue utility tax meeting is scheduled for March 31. The discussion
will focus on assessment and valuation. If you have any questions, call Tim or John at (651)
22S-8840.
Attachments
Page 2
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'MAR.. 7. 2000 10: 54PM
. ~ NIP
011 16512259088
NO. 1386 P. 3
Northern States Power Company
145 University Ave. W" Suite 470
St, Paul, Minnesota 55103
Telephone (651) 22g...2545
January 24, 2000
Tim Flaherty
Coalition of Utility Cities
c/o Flaherty and Associates
444 Cedar Street Suite 1200
St. Paul, MN 55101
Dear Tim:
Thank you for meeting with me and other representatives from Northern States Power
Company on your latest proposal regarding the personal property tax on generation
plants. We want to continue to work together so we can find a solution which can be
sUpported by both NSP and our host communities.
Your latest proposal recognizes that the personal property tax will be a barrier to fair
competition in a restructured energy environment, and attempts to respond to the
economic realities of competition as well as the revenue needs of host communities.
By accepting that both host communities and NSP have legitimate economic concerns
regarding the future of the personal property tax, this proposal has taken a giant step
toward our mutual goal of finding a solution which works for a/l of us.
However. NSP cannot support the proposal you outlined at our last meeting. While It i8
a step in the right direction, there are still several elements of the bill which are
unacceptable to NSP:
· The bill codifies the two-tier property tax system for generation plants which the
LegiSlature has informal/y' implemented over the last several sessions. NSP
believes that in a restructured electric market, generation companies should be
ta~ed similarly to other Minnesota businesses which must compete in the
marketplace. Your proposal will tax some generation companies under one system,
others under a second - this isn't equitable wIthin our own Industry, let alone with
other Minnesota businesses. The proposal is no different than if Target Stores were
taxed under one system and Wal-Mart were taxed under another; it is unfair even if
the final result is roughly equitable for each business in any individual year.
· The bill is drafted as if vertically integrated utility companies will continue to exist,
and the MnPUC will continue to regulate generation rates. In a restructured market,
our generation prOduct will no longer be rate regulated: we will be setting prices on
the open market as any other industrial company currently does. Personal property
taxes will no longer be recoverable in rates for generation companies, and it is not
sound tax policy to expect two generation companies (NSP and MN Power) to pay
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. roughly $34 million in unique property taxe.s twice each year, even with a promise
that it will be refunded by the state.
· At OUr meeting, we briefly discussed some of the administrative problems inherent to
the refund procedure. Basically. exempting some generation companies from a tax
while others must face the administrative procedures intrinsic to tax collection and
refund is unfair.
As one example, your proposal assumes our unregulated generation company can
cash-flow $24 million in personal property taxes on May 15th, with the promise that
funds will come from the state a few days later when the tax bill is passed out of
conference committee. That is unrealistic, and Is a risk of doing business which no
other Minnesota company accepts.
· Your proposal shifts ~ of the financial risks of the plan to generation companies. I
believe we are both hopeful that future legislatures will honor a compromise
p~rsonal property tax bill as Initially passed. However, representatives from host
communities have expressed concern that the Legislature's support may waver after
several years. In the event they are correct, the ~nancial risks to a generation
company are greater than the risks to host communities.
If the Legislature adopts a plan to provide host communities with L.GA to replace the
personal property tax, host communities still have revenue options available If the
Legislature reduces the aid in subsequent years. For example, cities and counties
can use levies or fees to supplement lost revenue. This is not our preferred solution,
but the alternative is available to host communities.
Generation companies will not have that option, as we will no longer be rate
regulated. If the L.egislature does not fully fund the property tax refund, we cannot
replace lost revenue by raising our generation prices above the market price. Under
this scenario, generation companies may soon be unable to sell their output - which
I assume we agree does not benefit NSP, Minnesota consumers or the financial
health of our host communities.
As you discovered at our meeting, our tax technicians and the Cepartment of Revenue
have Identified other pOints of concern with your current draft. NSP is also concerned
whether your proposal will meet constitutional tests, and is examining whether the
suggested optional fee imposed by local governments is workable. We will comment on
those items in a separate letter.
As I indicated, this plan has moved a giant step forward from H.F. 2367. However, it
assigns serious financial risks to generation companies which own existing power
plants, while allowing other generation companies to operate In Minnesota
unencumbered by these risks.
At this time, NSP does not plan to sponsor a personal property tax bill during the 2000
session, as we have during the past several years, If that strategy changes, we will
contact representatives from our host communities to inform them of our plans. For
example, if a reasonable proposal is introduced, we reserve the right to support it. In
addition, if legislative leaders are interested in moving ahead with a personal property
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. tax proposal this year, we would join the debate and support" a specific proposal, as
needed.
In the meantime, we intend to continue to work within the Department of Revenue's
current examination of utility taxation. We also would like to continue to work with your
coalition on a personal property tax plan. Our preferred solution to this issue is a plan
which N~P, other generating utilities and the host communities can all agree upon.
In NSP's view, the plan should meet the following objectives:
1. Eliminate the personal property tax on al/ generation facilities
2. Keep host communities whole
3. Minimize the risks inherent in a change in the property tax system
I hope we can reach agreement on a plan in time for the Department of Revenue to
consider our mutual proposal as they develop legislative recommendations for the 2001
session.
Thank you again for your interest in working together on this issue. Please feel free to
call me any time at (651) 229-2581.
Sincerely,
~~
Todd Rapp
Director of State Government Affairs
c:
Representative Jerry Dempsey
Joe Rudberg, City of Becker
Jeff Haubrich, City of Red Wing
Jenny Engh, Minnesota Department of Revenue
Karen Baker, Minnesota House of Representatives Reseerch Department
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Professional Ass",iation
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Febrnary 16,2000
Todd Rapp
Northern States Power Company
145 University Avenue W., Suite 470
St. Paul, MN 5S 1 03
Dear Todd:
Thank you for responding to the proposal the host comm1.U1ities discussed with you and
the Department of Revenue on JanlW)' 7. We are disappointed that NSP is not able to
support this proposal, which eliminates the personal property tax burden on existing
generation machinery. We also hope that we can. continue to work toward a solution
acceptable to both NSP and the host communities.
.
A3 we have told you, the host communities will not push a proposal that is not
supported by all parties, and hope that you will do the same. We will probably bave
this legislation introduced during the session, but 'Will not request a hearing in order to
have the Coalition of Utility Cities' proposal on the public record.
There are a few points in your letter that I would like to contend. First, the host
communities' proposal in no way recognizes the personal property tax as a competitive
barrier. Our proposal was put together to respond to legislators who wanted to know
what type of solution the host communities could support. The host communities still
believe insufficient evidence ofa competitive problem has been provided. We hope the
Department of Revenue utility tax study will examine the competitive question in a.
comprehensive manner. At this point, the host conununities view the personal property
tax exemption to be a political problem, not a competitive one.
.
On the issue of codifying a two..tiered property tax system. the host communities
believe that it is up to the legislature to decide whether or not a two..tiered system is bad
tax policy. Current state tax policy creates incentives for energy efficiency by
exempting the personal property tax if certain efficiency standards are met. Taxing
coal. nuclear, natural jas, and alternative fuel icneration differently may be a tax policy
that the legislature wants to support. Comparing Target and Wal..Mart stores to nuclear
and coal..fired power plants is a meaningless comparison. The idea that a nuclear or
coal-fIred power plant should be treated as any other Minnesota business is
,.~....
444 Cedar Street. Suit. 1200 . Pip.r laffra)l Plaza. St. Paul, MN "101 . (651) 225..8140 . Fax (651) 225..9088
MAR. 7. 2000 10: 55PM
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Febl'Ualy 16, 2000
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unacceptSble. They are not like any other busil1e3', 05pccially in re.pect to their impact
on residents and other businesses in host communities.
The legislation is drafted as though vertieal integmtion exi.ts, although it can and would
operate JUSt as effectively If a company was no longer integrated. It was done that way
assuming the! this legislation would be passed before restructuring legislation is
approved and lU:lUal competition begins. PUC regulation is relevant under our Proposal
because the tax bUIden would be eliminated immediately, while IOUs are stilllUUIer
PUC regulation. After the start of competition, when generation rate. are no longer
resuJated by the PUc, the property tax refund will follow the generation eompany that
is paying the tax and the PUC provision - as all PUC rate regulation provisions in
existing statute. - would be moot We assume thet competition will not begin for five
to ten years, therefore the automatic rate reduction was included in the legislation so
thet the companies stated de.ire to pass the .avings from the pmonal ptoperty tax
exemption onto their CUstomers would be realized.
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The host cOOll1lunities do not believe the generating comPanies will have a problem
making the personal property tax payment Your letter PIesurnes the market price will
be lower !ban the current generation cost. under regulated rates. The market price
could in 1ilct increase, providing more !ban sufficient income to cover the property tax
payment. In addition, If generation plants are divested to non-regulated subsidiaries,
cash flow should not be an issue sUu:e many non-regulated subaidiaries already have
holdings worth severa! billion doliars. Also, new generation companies will have to
have sufficient cash flow to pay their other operatine costs (labor, fuel costs, debr. etc.).
Why wouJdn 'tthese companics have sufficient cash flow to pay their taxe., just another
of their operating costs?
The legislation does place the fuwu:iaJ risks on the utilities, which host COOll1lunities
believe is appropriate, since the utilities are asking for the CXCIlIplion and receiving aU
of the benefits froDl the exemption. It is not realistic to ask host communities to take
the risks wbile the IOUs receive aU the bene/its from the legislation, This is
particularly true when business tax.. and government aids are compared against each
other as to their relative risk. We believe thi. shows the "double edged SWOrd" efrect of
this SlralollY. Not only is the risk _to host COOll1lllllitie'!ban it would be to the
IOUs, but ho.t COlllll1unities don't get any oflhe benefits that may WltTant exposure to
that kind of risk.
Your letter also state. that local governments are protected because they can simply
raise t1teir levy lfaid to them is cut. Thi. is a fundamental misunderstanding ofth.
concerns host communi tie. have raised. and frankly i. no more reasiblethan IOUs
raising their rates abOve what their customers can afford to pay. Residents and other
husine.... in the host communities would be subjected to wholiy UllaCceplable tax
increase. as a result of thi. ohift. ManY.smal1 busin..... and homeowners simply could
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not withstand the size of the increase necessary to Cover this cut, 'and a city council
would neither Want to, nor be able to, force those increases.
Finally, the host colXUtlunities also believe this proposal alleviates constitutional
concerns based on our work with House Research.
Since we are two weeks into the leeislative session, and we have no agreement between
host communities and IOUs, we think it is unwise for the host communities or the
utilities to get dragged into a forced settlement by legislators. Therefore, we will
oppose passage of any legislation Proposed by any legislator or interest group on this
subject this session and would like you to do the same.
Sincerely.
7I:::i1? 6
cc: Representative Jerry Dempsey
Joe Rudberg, City of Becker
Jeff Haubrich, City aiRed Wing
Jenny Engh, Department of Revenue
Karen Balcer, Minnesota HOWle of Representatives Research Department
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COUNCIL UPDATE
March 13, 2000
New employee hired for replacine Sue Thibodeaux as Bookkeeper/Accounts Payable Clerk. (RW)
For the past few years, Sue Thibodeaux has been the City's bookkeeper/accounts payable clerk and
will be leaving the City's employment March 17th. Sue will be moving with her husband to Omaha,
Nebraska as the result of his relocation.
Because ofthc vacancy, the City recently advertised for this position and received 35 applications that
were narrowed down to eight individuals that were interviewed recently for the position. As a result of
the interview process, we have offered the position to Lori Wentland. Lori was able to work it out
with her employer to allow her to work for the City of Monticello starting March 13th for one week so
that she can work with Sue prior to her departure. Lori will then finish her two weeks notice with her
present employer and begin again for the City full time on March 27th.
Lori will begin at Step 1 within our salary grade four for this position which is $11.52/hour.