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City Council Agenda Packet 09-25-2006
AGENDA REGULAR Monday September 25, 2006 — 7 p.m. NOTE: Special meeting at 5 p.m. — Fiber Optics Workshop Mayor: Clint Herbst Council Members: Wayne Mayer, Tom Perrault, Glen Posusta and Brian Stumpf 1. Call to Order and Pledge of Allegiance. 2A. Approve minutes of September 11, 2006 regular Council meeting. 2B. Approve minutes of September 11, 2006 Special Council meeting. 2C. Approve minutes of September 13, 2006 Special Council meeting. 3. Consideration of adding items to the agenda. 4. Citizen comments, petitions, requests and concerns. 5. Consent Agenda: A. Consideration of ratifying hires and departures MCC, Water and Streets. i\ B. Consideration of approving request for charitable gambling license for Wright County Ducks Unlimited for November 16, 2006 at Jala Penos. C Consideration of a request by Crostini Grille to extend the time frame for the patio enclosure to encroach in the right of way. D. Consideration of appointing election judges for the November 7, 2006 general election. E. Consideration of modification to the Otter Creek Crossing 3d Addition Plat. F. Consideration to ratify the EDA approval of GMEF Loan No. 025 and the Loan Agreement (Business Subsidy Agreement) between the EDA and Karlsburgers Foods, Inc. G Consideration of an amendment to Chapter 11 of the Monticello Zoning Ordinance regulating the B-1 (Neighborhood Business District.) H, I/ I Consideration of a request for rezoning from R-2 (Single and Two Family Residential) to B -I (Neighborhood Business) for 530 West Broadway. Applicant: David Thielman/Gateway Music Festivals. 1 Agenda Monticello City Council September 25, 2006 Page Two Consideration to correct formal record by rescinding a motion to approve a conditional use permit for drive-through facility for Broadway Market with conditions to redesign a drive-through and approving a motion to approve a conditional use permit for a drive- through facility with no conditions. J. Consideration of authorizing preliminary survey and feasibility study relating to reconstruction of Chelsea Road between Fallon Avenue and County Road 18. 6. Consideration of items removed from the consent agenda for discussion 7. Consideration of approving resolution declaring costs to be assessed; authorizing preparation of assessment rolls and setting a public hearing date for the following projects: a. Meadow Oak Avenue, Project No. 2005-05C b. School Boulevard west (Deegan Avenue to Redford Lane), Project No. 2005-02C C. 7h Street/Highland Way, Project No. 2004-02C d. CSAR 18/1-94 Interchange, Project No. 2004-01C e. 2006 Street Reconstruction, Project No. 2006-01 C. f Chelsea road West/Dalton Avenue (formerly School Blvd) Project No. 2005-11C 8. Review of updated information on for Street Lighting improvements on School Boulevard from Edmonson Avenue to Fenning Avenue and 7th Street East from Washington Street to St. Benedicts and Phase 11 of Pedestrian Safety Improvements for School Boulevard. 1,9.1' Consideration of award of contract for extension of Dalton Avenue, Dalton Way and Dalton Court, City Project No. 2006-15C. 10. Consideration to hear the findings of the Broadband Feasibility Study and to approve the recommendation of the Fiber Optic Task Force. 11: Consideration of approving plans, specifications and advertising for bids for parking lot and hardcourt for Groveland Park, City Project No. 2006-27C, 12. Consideration of authorizing improvements for the River Mill Pathway between Mill Run Road and River Forest Drive. 13. Approve payment of bills for September. 14. Adjourn. 105 t 101 UI Monday September 11, 2006 — 7 p.m. Members Present: Clint Herbst, Wayne Mayer, Tom Perrault, Glen Posusta and Brian Stumpf Members Absent: None Mayor Herbst called the meeting to order at 7 p.m. and declared a quorum present. The Pledge of Allegiance was said. Tom Perrault noted typographical corrections on pages 7 and 8 and added in 2A approval of the minutes that he was opposed to the constitutional amendment for dedicating MSVT funds because at least 40% of the funds could go to public transportation ORION 11IFTll1 0,1 Brian Stumpf added discussion of trail/pathway map and update on TH 25 traffic study. City Administrator Rick Wolfsteller noted the upcoming LMC regional meeting on September 28, 2006 hosted by the City of Monticello. Clint Herbst reminded the Council of the celebration in honor of Monticello's 150th birthday being held at Ellison Park on September 16, 2006. Tom Perrault informed the Council of the death of the wife of Representative Bruce Anderson. There was a moment of silence in remembrance of the events that took place on 9/11. 4. Citizen comments, vetitions. reauests and concerns. No one spoke under citizens comments. 5. Consent Agenda: A. Consideration of ratifying hires and departures MCC, Parks, Water and Streets. Recommendation: Ratify the hires and departures as identified. B. Consideration of adopting a resolution correcting legal description for vacated Old Territorial Road. Recommendation: Adopt the resolution correcting legal, description for vacated portion of Old Territorial Road. Resolution No. 2006-72. C. Consideration of deferral of special assessment for Outlot B Spirit Hills (155-152- 000020). Recommendation: Adopt the assessment for Outlot B of Spirit Hills (155- 152-0020) in the amount of $18,254.75 for stone sewer improvements and approve the deferment of said assessment until such time as Outlot B develops or until June 1, 2011. D. Consideration of approving temporary liquor license for a wine tasting event on November 17, 2006 for Hi -Way Liquors. Recommendation: Approve a temporary liquor license for Hi -Way Liquors for their wine tasting event on November 17, 2006. E. Consideration of approving final payment and accepting improvements for Parking Lot Improvements to Pioneer Park and Monticello Public Library, Project No. 2004-32C. Recommendation: Accept the improvements and approve the final payment of $4,519.38 to Buffalo Bituminous, Inc. for Project No. 2004-32C, Parking Lot Improvements. F. Consideration of approving final payment and acceptance of work for Hillside Farms Storm Sewer Outlet, City Project No. 2004-07C. Recommendation: Authorize final payment in the amount of $19,146.95 to Schluender Construction, Inc. for the Hillside Farms Storm Sewer Outlet Project, City Project No. 2004-07C subject to receipt of the final paperwork. G. Consideration of adopting a resolution approving the plans and specifications for the CSAH 18 roundabout at Meadow Oak Avenue, (City Project No. 2004-01 Q. Recommendation: Adopt a resolution approving the plans and specifications for the construction of a roundabout at CSAH 18 and Meadow Oak Avenue. H. Consideration of approving Change Order No. 5 for the CSAH 18/1-94 Interchange Project — Construction of the roundabout at Meadow Oak Avenue, City Project No. 2004-01 C. Recommendation: Approve Change Order No. 5 to R.L. Larson Excavating, Inc in the amount of $557,783.43 for construction of the roundabout at Meadow Oak Avenue (City Project No. 2004-1 C). I. Consideration of approving Cooperative Highway Improvement and Maintenance Agreement between the County of Wright and City of Monticello for CSAH 18 and Meadow Oak Avenue Roundabout. Recommendation: Approve the Cooperative Highway Improvement and Maintenance Agreement for the proposed roundabout at CSAH 18 and Meadow Oak Avenue. Consideration of a request for a conditional use permit for open and outdoor storage in an 1-2 District. Applicant: AME, Inc. (AVR). Recommendation: Approve the conditional use permit for AVR to allow for open and outdoor storage based on a finding that the proposed use is consistent with the intent of the 1-2 District and that the conditions for approval have been met. K. Consideration of acceptance of improvements for Timber Ridge Development, Additions 1-3, City Project Nos. 2002-03P, 2004-17P and 2005-23P. Recommendation: Accept the public improvements for the Timber Ridge Development. L. Consideration of approving plans, specifications and advertising for bids for parking lot and hardcourt for Groveland Park, City Project No. 2006-27C. Recommendation: Approve the plans and specifications and proceed with the project for the parking lot and hardcourt for Groveland Park, City Project No. 2006-27C. M. Consideration of accepting bid for Pioneer Park play structure. Recommendation: Approve the plans, specifications and bid from the Minnesota/Wisconsin Playground System for a play structure at Pioneer Park. Items #5H, #5J and #5L were removed from the consent agenda. GLEN POSUSTA MOVED TO APPROVE THE CONSENT AGENDA WITH THE REMOVAL OF ITEMS #5H, #5J AND #5L. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. #511, Change Order No. 5 for the CSA H 18/1-94 Interchange Project relating to construction of the roundabout at Meadow Oak Avenue. Consulting Engineer, Bret Weiss provided an update to the Council on the change order. The City has been working with the County, MnDOT and Federal Highways to get approval for the roundabout at Meadow Oak Avenue. The initial cost estimate was $400,000 but the change order price is $557,783.43. He noted that increase in bituminous prices added $75,000 to the cost of the project and there were other items such as concrete work. He noted that construction of a roundabout is not a typical construction project. Bret Weiss expects that the interchange project may come in $50,000 less than estimated so that could be used to offset the higher cost for the roundabout. The Council can proceed with the change order or they can bid the construction of the roundabout as a separate project. He stated there is no assurance that bidding it as a separate project will result in a lower price. If it is bid as a separate project, it is unlikely that the work would be completed this year. Glen Posusta asked if any of the cost of the roundabout could be assessed. Bret Weiss responded that Shawn Weinand had agreed to pay $50,000 towards the roundabout. The other development agreements with adjacent property owners did not include this cost Wayne Mayer asked for an explanation of the resolution that the City was requested to approve. Bret Weiss stated that in the County's State Aid funding in order to receive credit for local efforts the resolution needs to be adopted. He pointed out that the City will be paying the $550,000 in cost but the County will be submitting it to the state for MSA credit. Clint Herbst asked if the County would forward the state aid funding received to the City. #5J Conditional use permit for open and outdoor storage in an 1-2 District (AVR). Brian Stumpf was concerned about what was going to be stored outdoors. The area designated on the plan at the northwest comer of the site would be used for temporary storage of materials used in the making of their aggregate. Brian Stumpf stated the storage area should be finished and not a grassed in area. The area will be screened and does meet the standards for outdoor storage in an 1-2 District. BRIAN STUMPF MOVED TO APPROVE THE CONDITIONAL USE PERMIT FOR OPEN AND OUTDOOR STORAGE FOR AVR BASED ON A FINDING THAT THE PROPOSED USE IS CONSISTENT WITH THE INTENT OF THE 1-2 DISTRICT AND THAT THE CONDITIONS FOR APPROVAL HAVE BEEN MET. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. #51, Plans and Specifications for parking lot and hardeourt for Groveland Park. Glen Posusta asked if a public hearing had been held on this project. It was noted that the project would be funded from budgeted funds and not assessed. Glen Posusta felt the improvement should not be done without the property owners in the area being notified. Seth Nelson stated that when the plan for Groveland Park was developed, an informational meeting was held to get comments on the development plan. In addition there was a public hearing conducted by the Parks Commission when the City applied for a grant for the parking lot and hardeourt and there have been a number of surveys conducted on what the residents want to see in this park. Clint Herbst suggested that an informal meeting be held before the next Council meeting and the Council could then act on the matter. 7. Public Hearinp- on Proposed 2006 Street L!2htin2 Improvements. Proiect No. 2006-25C and " Phase 11 of Pedestrian Safetv Improvements for School Boulevard, Proiect No. 2006-26C;, order street liphtin2 improvements and authorize preParation of proposals for submittal to utilitv companies for desi2n build, and authorize preparation of plans and specifications for Phase 11 of Pedestrian Safetv Improvements for School Boulevard., Public Works Director, John Simola provided background information on the lighting portion of the public hearing. Rectilinear fixtures are being proposed for the lighting projects under consideration. The base of the fixture is screwed in not cemented with the poles being 25'-30' in height. Project #1 provides street light on School Boulevard East from Edmonson Avenue East to Penning Avenue. 25 lights are being proposed at an estimated total project cost of $315,000. The only portion that is assessable is the school district property. The City will end up picking up the major portion of the project cost. Project #2 covers street lighting for Chelsea Road from 90th Street to CSAH 39 and on Dalton Avenue. 18 fixtures are being proposed at an estimated project cost of $198,600. With the City being the primary property owner in the area they would be picking up a good portion of the cost although the properties on the north side of Chelsea Road would be assessed. Glen Posusta questioned whether it made sense to have lights installed when there was only one business presently located in the area. John Simola responded that economics was the primary consideration as it was more expensive to install the street lighting system in a piecemeal fashion. Clint Herbst suggested that with the street lights in place it will make the industrial park more marketable. There was some discussion on the cost of the project and the limited number of properties that could be assessed for it, Clint Herbst asked if the City could bond for street lighting and City Administrator, Rick Wolfsteller indicated they could. Even if the City established a franchise fee with the electric utility company, the City would still have to do interim funding for the project but would be paid back from the franchise fees collected. Glen Posusta asked on the School Boulevard project if it was proposed to light just the road and not the bike path. John Simola stated the lighting was for the road only. Glen Posusta suggested there be two lights on the pole one for the street and one for the pathway. Because of the heavy pedestrian and bike use on the pathway he felt lighting the pathway was necessary. John Simola stated the additional lights would increase the cost considerably and it would also have to be verified that the pole and fixture set up would accommodate another light. Tom Perrault asked about the cost of operation for the lights. John Simola stated it would be bid as part of the project but on the last project the maintenance rate was $13.80/month including fixtures, brackets, poles and wiring. Electric cost for the light is $2-$3/month. Project #3 covers 7th Street East from Washington Street to the east side of the St. Benedict's driveway. There was discussion on the amount of assessable land within the project area. The question of non -assessable property and who picks up the cost was raised. Is it rolled back into the total cost and spread among the assessable property or does the City pick up the portion of the cost that is not assessable. John Simola stated he didn't look at what portion of the church property could be assessed. Bret Weiss stated the City needs to discuss this matter with the church in further detail summarizing all the issues relating to the street lights and the Fallon Avenue improvements. Project #4 covers 7th Street East from St. Benedict's and Highland Way with three lights being proposed for Highland Way and six lights for 7th Street at an estimated cost of $95,676. It was noted that Ryan Development had placed three parking lot lights on Highland Way. Normally the development agreement specifies that the developer is responsible for street lighting on all the streets within the development. There was lack of clarity in the Ryan Company Development agreement and taking the written document literally they provided a light at the intersection of 7h Street and Highland Way. One-third of the project will funded by Ryan Companies and another one-third will be saved if the existing parking lot lights can be utilized. Bret Weiss then gave a presentation on the pedestrian safety improvements proposed for School Boulevard. These improvement include pathway extension from Country Avenue through the Cardinal Hills development, a pathway connection between the two crosswalks by the high school and Little Mountain Elementary School and a pathway connection between two properties in the Cardinal Hills development. It is also proposed to make the existing bumpouts permanent and to install a pedestrian flasher signal at one of the two bumpout locations. The estimated cost for these improvements is $1.91,000. Mayor Herbst opened the public hearing. Linda Barthel, 5401 Falcon Avenue and Philip Frederick, 5400 Falcon Avenue spoke to the Council concerning the pathway between School Boulevard and Falcon Avenue. They felt it is unsafe to have a pathway between the two homes and are concerned about the proposed fence between the two ponds. City Engineer, Bruce Westby indicated that the fencing proposed would be a split rail type fence and is meant to provide a barrier before hitting the pond. There was discussion on the construction of the pond and whether a safety bench could be put into an existing pond. Bret Weiss indicated it could probably be done but it would be costly. Mr. Frederick was concerned that the sidewalk would be used as a ramp for skateboarding or bikes. He noted on a previous occasion when this pathway was discussed by the City he had gotten other residents to sign a petition in opposition to the proposal. He suggested that the pathway be located at the crosswalk at Eider Lane or Pelican Lane and to put a fence around the pond area to keep the kids out. Clint Herbst asked what the reason was to locate the pathway between the two homes. John Simola stated that was the area where the kids were crossing. Bret Weiss stated there was some concern about putting a crosswalk at a location where the driveways were coming out on to it. The school preferred the location that was being proposed. Brian Stumpf stated the City has to worry about what the general public wants. The peak times for users of the intersection is the same time children would be using the crosswalk. Mr. Frederick and Ms. Barthel reiterated their concerns about the safety of a pathway in this location and having a hard surface between the two ponds. Mayor Herbst closed the public hearing. Brian Stumpf suggested that the City should visit with the school regarding the pedestrian improvements and that thelA portion of the project (pedestrian safety improvements) be held off. Brian Stumpf asked where would the funds be coming from to finance the improvement on the Chelsea Road project. Clint Herbst responded stating this is an example of where franchise fees come into play. The City would fund the initial cost with a bond and reimburse itself for the cost of the bond issue through the franchise fee. Glen Posusta said he had a hard time approving this without lighting the pathway on School Boulevard. Wayne Mayer felt the #1 and #IA (street lighting and pedestrian safety improvements on School Boulevard) deal with pedestrian safety and the Council should take care of this. Projects #24 could be delayed. Wayne Mayer suggested doing further study on #1 and #IA including the cost of lighting the pathway on School Boulevard and bring it back at the next meeting. John Simola indicated he would not have the information ready until the October 9th meeting. The Council indicated that even if it was not an exact plan they wanted the information for the meeting on September 28, 2006. Tom Moores will work with Bruce Westby to get this information ready for the September 28th meeting. Tom Perrault stated he was not in favor of the sidewalk between the two homes and felt the sidewalk on School Boulevard need more illumination. He also felt the street lights on Chelsea Road would make the City's industrial park more marketable and that the other projects could be delayed until next year. 8. Consideration of acceqlLng feasibility report for sidewalk improvements on 6th Street from Locust Street to Elm Street. Brian Stumpf brought up why no public hearing was being scheduled for this project. He felt there should be some kind of notification before the City proceeds with this project. It was noted at this time the Council is just being asked to accept the feasibility report. City Engineer, Bruce Westby reviewed the feasibility report with the Council. He stated that on May 8, 2006 and June 12, 2006 the Council had discussed the pedestrian safety needs in this area and the feasibility report was the result of Council direction. The report proposes construction of a sidewalk along the north side of 6th Street from Locust Street to Elm Street and also along the west side of Elm Street from 6th Street to County road 39. Glen Posusta felt the sidewalk should be on the east side of Maple Street because of the presence of the school. Wayne Mayer understood the Council's direction was to put the sidewalk on 5b Street. Bruce Westby stated the Council had approved having staff work with the Swan River EQ School and asked if the Council wanted to see sidewalk along 5t" Street. The Council indicated if nothing is done on 5th Street then the City should look at doing something on Maple Street. Clint Herbst felt by installing these improvements for the Swan River School other schools will request similar improvements. Brian Stumpf said it was important to finish the segments of sidewalk from Minnesota and Elm Street. Anything else would be above and byond. Wayne Mayer asked if there is sidewalk on 5th Street by Swan River School and is the sidewalk on the school side. Bruce Westby stated this study covers only improvements to the grid system. Council had indicated that they wanted something in the way of improvements for the school along 5th Street. Bruce Westby said there is room to construct sidewalk on the north side of 5tl' Street. There are two issues here; the traffic from the school and the traffic from the residents in the area. Bruce Westby indicated one other item in the feasibility study was a trail along the railroad corridor. In the area from Vine Street to County Road 39 the City would have to work with the railroad to put the trail system in. If it is east of Minnesota Street, the City can override the property owner and install the trail. Tom Perrault stated he would like to see the pathway in this area delayed until the Ruff's Auto property is redeveloped. John Simola stated the proposed improvements would be put together and bid over the winter for a project to be constructed in the spring. 9. Consideration of extendin2 develooment time frame with Mike Krutzi2 on Lot 2, Block Jefferson Commons First Addition,. I Clint Herbst stated he had net with Mike Krutzig regarding the development of this property and he felt the developer was making the effort to get the property developed. Wayne Mayer asked what the going price was for the land. Rick Wolfsteller indicated that City was paid for the property and if the City did purchase it back could the City market it any better. Wayne Mayer said if the land is below market value then it may be better for the City to purchase it back otherwise he felt comfortable with extending the time frame of the agreement. Brian Stumpf felt in the future the City should look at some different type of guarantee as far as development, GLEN POSUSTA MOVED TO APPROVE AN AMENDMENT TO THE DEVELOPMENT CONTRACT GRANTING AN ADDITIONAL TIME FRAME TO AUGUST 1, 2007. TOM PERRAULT SECONDED THE MOTION. Rick Wolfsteller noted the current agreement includes City approval of sale the land by Krutzig without the land being developed. GLEN POSUTA AMENDED HIS MOTION TO INCLUDE THAT SAME TERM. TO�l PERRAULT SECONDED THE,AMENDED MOTION. MOTION CARRIED UNANIMOUSLY. 10. Department Head Activity Report — Verbal report with back2round information included, in a2enda Packet. Gary Anderson Chief Buildin2 Official, Gary Anderson, Chief Building Official, updated the Council on his department's effort on violations relating to blight/nuisances. He noted 312 notices were issued for blight violations and gave a breakdown on they were resolved. Gary Anderson appreciates the fact that with a building department at full staff, they have the manpower to work on the violations. He stated that with the violation notices, word of mouth was very effective. When one property owner received a violation notice the word got around and other property owners would take steps to avoid getting a notice. He stated that getting a blight violation corrected can be a lengthy process but stated it is important for those who see the violations to report them to the City. Gary Anderson also reported on the building activity stating that the number of permits is up but the value of the work is down, He noted that the builders and developers are not pulling permits for homes/townhomes until they know they have a buyer. Trail Maps. Brian Stumpf was contacted by a resident who felt the City's trails were poorly marked. It was suggested that the present trail map be updated. TH25: Brian Stumpf asked what the status was on the study for traffic on this road. Bruce Westby stated they have met with MnDOT and staff has been discussing some modifications that could be made. MnDOT will be taking traffic counts along TH 25 by the end of the month. There has been dscussion on three crossing on TH 25. Brian Stumpf brought up a problem in trying to make a left turn from 4h Street to go into Is' Minnesota Bank or Moon Motors and asked that it be looked into. M =111M M I 0 a & I I I 6*1 V-00121 91 a all N *1 INGINJ V 116112MOV Eel 109KNENJA ION N 1:10XIMMANINUVILU19M The meeting was adjourned at 9:30 p.m. Recording Secretary 10 MINUTES R MONTICELLO CITY COUNCIL Monday •p 100 0 Members Present: Clint Herbst, Wayne Mayer, Tom Perrault, Glen Posusta and Brian Stumpf Members Absent: None Mayor Herbst called the meeting to order at 5:30 p.m. and declared a quorum present. 2. Consideration of vreliminary 2007 Budget and Tax Levv. City Administrator, Rick Wolfsteller reviewed the budget and what changes had been made since the first budget workshop. These changes included repayment of funds by the EDA of $80,891 which will be used to reduce the tax levy. Publication costs were reduced by $25,000 on the assumption that the City would continue to publish the minutes. Wayne Mayer felt the publication of minutes/notices should be put out for bids. It was noted that approved minutes are on the City's website. A suggestion was made that copies of the minutes in larger print be sent to the senior center and the library. It was also discussed whether approved bills need to be published. Clint Herbst suggested that the City not publish the approved minutes and bills on a trial basis. $2,000 had been budgeted to MEADA. Wayne Mayer questioned the $2,000 amount stating that rental of the MCC facilities for one or two events would use all the funds. He felt an appropriation of $4,000 would be more suitable. With the changes to the budget, the levy amount would be below the amount requiring the City to hold a Truth in Taxation meeting. Rick Wolfsteller provided the Council with a budget comparison between the City of Monticello and the City of Buffalo. If the City wanted to increase revenues without increasing the tax levy, they would need to look at increasing the amount of the fees they charged for services or add new fees. Establishing a franchise fee with Xcel Energy is one possibility. It is estimated that a 3% franchise fee would generate $275,000 annually which could be used to fund new street lighting projects, a light replacement program, maintenance and operating costs. Wayne Mayer questioned the $850,000 for franchise fees in the Buffalo budget and Rick Wolfsteller informed the Council that Buffalo owns and operates their own electric utility. If a franchise fee is established it would have to be determined whether it would be based on usage or a flat rate. Rick Wolfsteller pointed out that the City is currently looking at a number of street. lighting projects that the City will have to fund. If a franchise fee was in place those funds could be used for that purpose. Although Xcel Energy would prefer to have a franchise fee based on some method other than actual usage, it is an issue that could be negotiated. The 11 proposed budget includes $275,000 in revenue from franchise fees. If the City determines not to pursue a franchise agreement, other sources of revenue would be needed to replace the $275,000 or budget cuts would have to be made. Glen Posusta didn't feel the people would object too much to a small user fee. The City can increase the revenues need to operate by either increasing the tax levy, or increase and/or add new user fees or some combination of the two or cut expenditures. Rick Wolfsteller stated initially the driving force to use the tax levy as the main revenue source was that Xcel Energy was 75% of the tax base and the Council at that time felt it made sense to collect through taxes because a large portion of the levy was paid by Xcel. If the Council wanted to shift from increasing the tax levy to generating more revenue from user fees that could be done. In addition to the franchise fee, other fees discussed included assessing a higher portion of the costs on improvement and reconstruction projects and charging the residents for garbage collection, The Council also felt sewer and water rates should be looked at. 011ie Koropchak, Economic Development Director asked about funding for future industrial park land. Clint Herbst felt there may be willing sellers of land for a future industrial park. He stated, if the Council agreed, that funding for land acquisition is something that should be set up. Glen Posusta felt the industrial park would fill up faster if the tax levy was lower. Glen Posusta felt the City should shift where it is getting its revenue from. Franchise fees and sewer and water rates were fees the Council felt could be looked at. Clint Herbst noted staff is billing their time back on various projects. Rick Wolfsteller stated the street lighting projects being proposed would cost about $550,000. To take care of this cost the City could tax for it, establish a franchise fee or assess it. Glen Posusta felt there should be a sunset clause in any franchise fee. A dollar amount would be established and when the reserves from the franchise fee reaches that amount the franchise fee, would cease. The Council questioned how long it would take to get a franchise fee in place. It was felt that it would take 60-90 days for this to be accomplished. Clint Herbst would like to see the levy set at $6.5 million stating that if the City continues to grow, the levy can be increased. For 2006 the City had levied $6.75 million but only received $6.5 million and the Council questioned if they set the levy at $6.5 million would that be what was actually received. GLEN POSUSTA MOVED TO SET THE LEVY FOR 2007 AT $6,500,000, WAYNE MAYER SECONDED THE MOTION. MOTION CARRIED WITH TOM PERRAULT AND BRIAN STUMPF VOTING IN OPPOSITION. 3. Tour of Fire Departmeng The Council adjourned the meeting at 6:15 p.m. to tour the Fire Department facilities. Recording Secretary 12 MINUTES IAL MEETING — MONTICELLO CITY COUNCIL Wednesday, September 13, 2006 — 4 p.m. Members Present: Clint Herbst, Wayne Mayer, Tom Perrault, Glen Posusta and Brian Stumpf. Members Absent: None Special meeting of the City Council was held for the purpose of conducting interviews with two additional candidates for the position of City Administrator. Interviews were conducted with Mr. David Mackie of Ralston, Nebraska and Mr. Zak Manuszak of Eden Prairie, Minnesota. A third candidate had been scheduled for an interview but had recently advised the City that he was no longer interested in being considered for the position. After completion of the two interviews scheduled, Council began discussion on the candidate's qualifications along with the qualifications of two candidates previously interviewed. During the discussion, Councilmember Perrault had indicated a preference for conducting an interview with another a candidate who had been considered as a possible candidate for the position but who could not make the scheduled interview time for September 13th. The majority of the Councilmembers felt the two separate advertisements for the position vacancy and the resulting interviews with four potential candidates was sufficient to allow the Council to continue with the process of hiring a new City Administrator and that additional interviews were not necessary at this time. In regards to Councilmember Perrault's request to conduct an additional interview, a motion was made by Wayne Mayer and seconded by Clint Herbst to not conduct any additional interviews with applicants at this time. Motion passed 4-1 with Councilmember Perrault opposing. Council then discussed the qualifications of the four candidates who were interviewed and a motion was made by Brian Stumpf and seconded by Wayne Mayer to offer the City Administrator position to Deputy City Administrator, Jeff O'Neill and to contact applicant David Mackie to inquire of his interest in an Assistant City Administrator position with the City of Monticello. Voting in favor were Clint Herbst, Wayne Mayer, Brian Stumpf and Glen Posusta with Councilmember Perrault voting in opposition. It was noted that the Personnel Committee will be meeting to discuss details of a contract offer for Mr. O'Neill's consideration and if Mr. Mackie is interested in pursuing an Assistant City Administrator position with the City, the full City Council could consider an offer to be made for the assistant position. Meeting adjourned at 7:30 p.m. Recording Secretary 13 Council Agenda: 9/25/06 5A. Consideration of avorovin,2 new hires and devartures for MCC.Water and Streets. (RW) The Council is asked to ratify the hiring and departures of employees that have occurred recently at the MCC, Water and Street Departments. It is recommended that the Council officially ratify the hiring/departure of all new employees including part-time and seasonal workers. I P t1OKOUI I III iiii� 1. Ratify the hiring/departures of the employees as identified on the attached list. List of new employees. 14 Name Title Department Hire Date Class — ----^ Jan000n`KeUy Climb Wall Attend MCC 8V11/2006 PT Meltzer, Katharine Guest Services || MCC 9/5/2006 PT Hoglund, Roger Operator /Mechanic Streets Dept. - ' 9/5/2006 FT �me ��u DepartmentDa' _--- Fedor Robert Temp Water 8/11/2006 Temp Pavik, Heather Voluntary MCC 8/25/2006 PT Rogooheoke, Preston Involuntary MCC 0/2/2000 PT Cader, Bethany Voluntary MCC 9/1/2006 PT Gerodo, Brandon Voluntary MCC 9/1/2006 PT Klym, Daniel Voluntary MCC 9/1/2006 PT Schaffer, Julia Voluntary MCC 9V1/2006 PT VanOorp, Jordan Voluntary MCC 9/1/2006 PT Vogt, Kyle Voluntary MCC 9/1/2006 PT Hey. Suzanne Voluntary MCC 9/4/2008 PT The|en,AUyson Voluntary MCC 9/1/2006 ' PT Oravetz, Anna Voluntary MCC 8/1/2006 PT employee council Uat.xis: 9M8/2006 IN Council Agenda: 9/25/06 Consideration of apvrovin2 a temporary charitable +. .x+ license for Wrieht Countv Ducks Unlimited. (RW) 1111111111 1111 '", - � 1 11 4-0 , , 11 , Wright County Ducks Unlimited has applied for a permit for a temporary charitable gambling license to conduct charitable gambling at Jala Peno's located at 530 Cedar Street on November 16, 2006. In order for the State Gambling Control Board to issue this temporary gambling license, a resolution by the City either approving or denying the application needs to be submitted with their application. In the past, the City has not opposed these exempt gambling licenses for charitable events. vyffiffil:''� 1. Adopt a resolution authorizing the State Gambling Control Board to issue the charitable gambling license to Wright County Ducks Unlimited to conduct charitable gambling activities at Jala Peno's on November 16, 2006. 2. Do not approve the charitable gambling license request. Staff is not aware of any reason -why the Council would not allow the State to issue this gambling license. Resolution Approving Charitable Gambling License Application X01 RESOLUTION NO. 2006-74 OF A GAMBLING LICENSE WHEREAS, Ducks Unlimited has submitted an application to the City Council of Monticello for a temporary charitable gambling license to conduct charitable gambling activities at 530 Cedar Street on November 16, 2006; WHEREAS, the Council is not opposed to the gambling license being issued by the State Gambling Control Board. NO W THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL that the application by Ducks Unlimited for a temporary charitable gambling license to conduct charitable gambling activities at 530 Cedar Street on November 16, 2006 is hereby approved and the State Gambling Control Board is authorized to process the application.. Adopted by the City Council this 25" day of September, 2006. Clint Herbst, Mayor ATTEST: Rick Wolfsteller, City Administrator 17 Minnesota Lawful Gambling Page I of 2 11/04 LG220 Application for Exempt Permit Fee $50 For Board Use Only An exempt permit may be issued to nonprofit organizations Fee Paid conducting lawful gambling activity on five or fewer days, and awarding less than $50,000 in prizes during a calendar year. Check No. Organization Information Organization legal name Previous license or exemption number, if any U ie Street city State and zip code County O&LI q er, Pr to I r I e1i j I A < HA Y L41-4 65� /3 Name of chief execAtive officer (CEO) First name Last name Daytime phone number K10 Type of nonprofit organization (check one) F-1 Fraternal M Religious F-1 veteran W Other nonprofit organization Type of proof of nonprofit - attach a copy (see instructions) F-1 Nonprofit Articles of Incorporation or Certificate of Good Standing - Minnesota Secretary of State's Office E] Internal Revenue Service -Ca Affiliate of parent nonprofit organization (charter) Gambling Premises Information Name of premises where gambling activity will be conducted (for raffles, list the site where the drawing will take place) Address (do not use PO box) city Zip code County 6eikv, 5)1r;- I PJ0 Vuh C_ e J/P r/ Date(s) of activity (for raffles, indicate the date of the drawing) Nb V� o', tj ( V 110, 70041 Check the box or boxes that indicate the type of gambling activity your organization will be conducting: [:1 "Bingo 0 Raffles F-1 -Paddlewheels Ej -Pull-Tabs F-1 --Fipboards *Gambling equipment for pull -tabs, tipboards, paddlewheels, and bingo (bingo paper, hard cards, and bingo ball selection device) must be obtained from a distributor licensed by the Gambling Control Board. To find a licensed distributor, go to www.gcb.state.mn.us and click on List of Licensed Distributors, Or call 651-639-4000. This form will be made avail I able in . all I erridtive Your I I name and and your organization's name the following: Board members, staff of the format (i.e. large print, Braille) upon request. and address will be public information when Board whose work assignment requires that The information requested on this form (and received bythe Board. All the other information they have access to the information; the any attachments) will be used by the Gambling that you provide will be private data about you Minnesota Department of Public Safety; the Control Board (Board) to determine your unlit the Board issues your permit. When the Minnesota Attorney General; the Minnesota qualifications to be involved in lawful gambling Board issues your permit, all of the information Commissioners of Administration, Finance, activities in Minnesota. You have the right to that you have provided to the Board in the and Revenue; the Minnesota Legislative refuse to supply the information requested; processof applying for your permit will become Auditor, national and international gambling however, if you refuse to supply this public. If the Board does not issue you a regulatory agencies, anyone pursuant to court information, the Board may not be able to permit, all the information you have provided order, other individuals and agencies that are determine your qualifications and, as a in the process of applying for a permit remains specifically authorized by state or federal law consequence, may refuse to issue you a private, with the exception of your name and to have access to the information; individuals permit. If you supply the information your organization's name and address which and agencies for which law or legal order requested, the Board will be able to process will remain public. authorizes a new use or sharing of information your application. Private data about you are available only to after this Notice was given; and anyone with yourconsent. [E. Council Agenda: 9/25/06 5C. Consideration of a reouest bv Crostini Grille to extend the time frame for the, license, a2reement for use of the vubli,c rip -ht of R Mill V� �Ir K"11 In May of 2006, the City Council considered a request by Crostini Grille to have an enclosed patio that would be encroaching into the street right of way. At that time, they also proposed that after October Crostini's would take the skirting down and leave only the aluminum structure. The structure would then be decorated for the holidays. The Council at that meeting approved the license agreement for the period of April 15th through October 15t'. With the approaching expiration date of the license agreement, Crostini's is requesting that the Council consider extending the license agreement through the holiday season. When the Council first considered the license agreement one concern was snow removal and the owners of Crostini's have indicated they would be responsible for snow removal from the sidewalk area on Locust Street. 1. The Council could extend the time frame of the license agreement to cover the holiday period. ;J 2. Council could deny the request to extend the license agreement. 3. Council could extend the time frame of the license agreement on a trial basis. On the initial request for a license agreement, it was the recommendation of the staff to limit the license agreement to April 15tb-October 15th in order to avoid any conflict with street and boulevard maintenance and that is still a concern of staff. However, if the Council is satisfied that Crostini's will provide adequate snow removal measures for the area, the Council may wish to consider extending the time frame of the license agreement. D. SUPPORTING DATA: te" Minutes of May 8, 2006. 119 Council Agenda - 5/806 #,5M_En_c.ro1a.chment into right-of way ,qr,Crostini's Grille: Crostini's Grille is proposing an enclosed patio to be located on Locust Street right-of-way. Tom Perrault questioned the time frame for allowing the encroachment to exist stating that right-of-way is normally used for snow storage and questioned whether having the structure in the right-of-way would complicate the snowplowing operations in that area. Wayne Mayer agreed and stated that while he did not mind having the tables set up he did question whether the structure should be in place before mid-May and up any longer than the end of October. Bob Hillman owner of Crostini's Grille stated they are proposing to erect an aluminum structure in early April. After October they would remove the canvas skirting and leave only the aluminum structure. This structure would be decorated for the holidays and they are looking at making it a focal point for the downtown area over the holidays. Glen Posusta asked if the City would be held harmless for any damage that they may suffer as a result of their encroachment into the right-of-way. Wayne Mayer said while he encouraged happenings in the down town area, he didn't like the time frame that was proposed. Tom Perrault suggested that itbe tried one year and then evaluated. The Council questioned if the sidewalk on Locust Street was on the grid system and who was responsible for snow removal. John Simola, Public Works Director indicated the property owner is responsible, Glen Posusta was concerned about the City being held harmless if the structure collapsed or there was other damage. It was indicated the property owner has the responsibility to insure the structure. Wayne Mayer noted that the sidewalk on Locust street is wider so the encroachment might not be as bad of a problem. However, he noted other locations along Broadway where tables, etc. are being placed in the right-of-way. City Attorney Tom Scott said this case involves a structure which is somewhat unique and that is why the City is looking at an agreement. Most cities have something in their ordinance that allows placement of tables in the right-of-way area so long as pedestrian traffic is not impeded. For something like tables, an ordinance would be a more effective means of handling that than an encroachment agreement. Jeff O'Neill stated the City's ordinance does not allow encroachment into the right-of-way unless there is some kind of agreement. BRIAN STUMPF MOVED TO ENTER INTO A LICENSE AGREEMENT WITH CROSTINI GRILLE FOR THE USE OF THE PUBLIC RIGHT OF WAY OF LOCUST STREET FOR THE PURPOSE OF A SEASONAL SEATING ENCLOSURE FOR THE PERIOD OF APRIL 15TH THROUGH OCTOBER 15TH. GLEN POSUSTA SECONDED THE MOTION, MOTION CARRIED WITH CLINT HERBST AND TOM PERRAULT VOTING IN OPPOSITION. Clint Herbst stated he felt the City should allow more leeway with the time frame, Tom Perrault felt it should be approved for a one year period and then reevaluated. 7. Consideration of authorizin(2 negotiations for the purchase of property at 413 West 6t' Street. City Administrator, Rick Wolfsteller informed the Council that the City had been approached by the property owner west of the Kevin Tracy property near the National Guard storage area to see if N Council Agenda: 9/25/06 2006.;D. Consideration of apvointment of election iud2es for Lreneral election on November The general election is scheduled for November 7, 2006. As part of the election process, the City Council must appoint judges to serve at the election. Attached is a list of judges that we will be selecting from for the general election. Their appointment is contingent upon completing the necessary training. 1. Appoint the election judges as listed in the attached document to serve at the 2006 general election contingent upon completion of training. The attached list is a pool of individuals that the City can draw from for the general election. It is the recommendation of the City Administrator that the Council approve this list of individuals to serve as election judges. Election Judge List 21 2006 ELECTION JUDGE LIST ELECTION CITY OF MONTICELLO NAME ADDRESS shfeld, Gregory 1515 Oak Ridge Circle, Monticello, MN 55362 Bitzer, Gladys 1716 Maple St, Apt CA Monticello, MN 55362 Bondhus, Joan 13 Riverside Circle, Monticello, MN 55362 Broekemeier, Ron 11440 Oak Ridge Cir, P01 326, Monticello, MN 55362 Bromberg, Janet 1172 Jerry Liefert Drive, Monticello, MN 55362 (Custer, Edith1410 Hilltop Dr, Monticello, MN 55362 11229 Dahl, Rosemary Sandy Ln, Monticello, MN 55362 Daniels, Mary 1701 E 4th St, Monticello, MN 55362 DeMarais,Agnes 11021 W Broadway, Monticello, MN 55362 DeMarais, Kristi 1724 West River Street, Monticello, MN 55362 Doucette, Richard 11314 Prairie Creek Lane, Monticello, MN 55362 Fisher, Jamie 14663 Country Circle, Monticello MN 55362 Gauthier, Kaye 1126 Hillcrest Rd, Monticello, MN 55362 Gillham, Lynnea 1915 W. Broadway, Monticello, MN 55362 Irvine, Jan 1325 E 4th St, Monticello, MN 55362 Kendall, Harvey 108 Hillcrest Road, Monticello, MN 55362 1648 Kraemer, Lori Broadway West, Monticello, MN 55362 Mayer, Florence 110 Craig Lane, Monticello, MN 55362 McIntire, Arlene 1120 West River St, PO 516, Monticello MN 55362 Moody, Judy 118 Kampa Circle, Monticello, MN 55362 Nesland, Merrijo 330 Third Street East, Monticello, MN 55362 lQuick, Richard 1113 4th Street SE, Monticello, MN 55362 Jeanette 1604 Vine Lane, Monticello, MN 55362 (Smith, Smith, Randy 1109 Craig Lane, Monticello, MN 55362 (Solberg, Darlene 11693 Spruce Drive, Monticello, MN 55362 1624 I Soltau, Rita E River St, PO 53 Monticello, MN 553362 I Sonju-Thielman, Patricia Ann 11344 Prairie Creek Lane, Monticello, MN 55362 (Stokes, Opal 1215 Locust St, PO 626, Monticello, MN 55362 ISuchy,Sandy, 1890 Briar Court, Monticello, MN 55362 Diane 4561 Cobblestone Ct., Monticello, MN 55362 11201 lWefel, Wolff, Lorraine Golf Course Road, Monticello, MN 55362 22 Council Agenda: 9/25/06 5E. Consideration of Modification to the Otter Creek Crossing 3 d Addition Final Plat (WSB) City staff is proposing a modification to the Otter Creek Crossing 3rd Addition plat to include an additional platted lot. This lot is designated as Lot 2, Block I and is adjacent to Lot 1, Block 1, which is the AVR site. This lot was previously part of Outlot A on the original 3rd Addition plat that was approved by the Council. Since this lot is bound by the AVR site, Dalton Court, and the power casement, it would be beneficial to plat this lot now since the lot area would most likely not be modified when sold. The total platted area has not changed with this modification. The plat has not been recorded yet, as we would like to incorporate this modification. The proposed Otter Creek Crossing 3d Addition plat consists of approximately 52 acres within the original Otter Creek Crossing plat. This plat includes the proposed AVR site (approximately 14 acres) as well as approximately 33 acres for development of the Monticello Business Center (Otter Creek Industrial Park). The remaining 5 acres (Outlot D) consists of a wetland area adjacent to Chelsea Road. This wetland area is being platted now in accordance with the agreement with John Chadwick and Jim Bowers to acquire portions of the wetland area as the City continues to purchase remaining parcels of the Otter Creek Crossing plat. The proposed Dalton Avenue, Dalton Court, and Dalton Way right-of-way is also included with the plat. 1. Adopt a resolution approving the modified final plat of the Otter Creek Crossing 3'd Addition. 2. Deny adoption of a resolution approving the modified final plat of the Otter Creek Crossing 3rd Addition. The City Administrator recommends selecting Alternative No. 1. Final Plat C. and SItinglda,rr,gl,,,viiigerTowlSettings ITeml)orary huenret FilesIOLK3)AGArIT6t-Ret,rsedOtier(,reek3i-dPlat-092506d')c 23 41 -to -- I I HHH" k 144 at also t rVinflud t Bo a 70 of I fif—i — - M I HIMM SIRM MGM It Q I I I I W slit. smov, f1m RAIM h OR, flusul-ST oll ZIRRA the Q W 110 I - 1141! L gk J'a "kH v M MR., 'Nugml- I HO H Ri all wiful I "I i M` i I lifff; qj"fli .-Sn" WISH 10119 "PSY 2 it P Q1 t a % j i MUMam nm 1 �'Mti k- 051" Mg — INH 1z 41 oilnmto Inkas mo wig WIN VMS A Min '05 A 1 13 fly IS It to ra I 'I ip if 191. - W£ST LINE CF OUROr B SW COR OUROT e Or2R OFWR CREEK CROSSING NW COR oURor- / CAFEK LWOSSMO B or CREEK !! S01'17'56"E N00'25'16"E caossrxc ye, `♦11326.16 685.15 _•-•r"}___'��.�G B.f86>_-____I! i ____t _ _ 6 _ _ >49 _ -__ _. __-___ __-_ __1�' •'' 1 ;' i ,/ ,! (�``--NEST UNE OF INE NW Y!^ i :-1 ! OF THE s. 1 o T. 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' or aunoT r I 321.86 !OTTER CREEK pRO55wC m a � %8 ,p dal tib'-- �w-mss � , •. ,, r � r - '�� 6 55, Jaal °c 1,H n ' - Oav�r7g�,�>' '! /. / • r A ._._.-_'_-__'-_' O16e'OM /! �?i � ' /r:?•/� r �`�• OG, yam. 00 H O `r9/ C+O`iLH' 25 ey1gae RY 4)i iR 1«.12 ° k TA I 25 0=4 5F. Consideration to ratifv the EDA approval of Greater Monticello Enterwise Fund fGMEF) Loan No. 025 and the Business Subsidy A2reement within the Loan, Agreement between the EDA and Karlsbur2er Foodsjgg. (O.K.) The EDA requests the City Council review GMEF Loan No. 025 for compliance with the EDA-GMEF Business Subsidy Criteria. The GMEF Guidelines state: "The EDA shall have authority to approve or deny loans; however, within 21 days of EDA approval, the City Council may reverse a decision by the EDA to approve a loan if it is determined by Council that such loan was issued in violation of the GMEF Guidelines." On September 5, 2006, the EDA approved GMEF Loan No. 025 for Karlsburger Foods, Inc. subject to Council ratification of EDA action; receiving Letter of Credit Worthiness and Commitment from the lenders, First Federal Savings Bank and Wells Fargo; and holding a public hearing on the business subsidy. The GMEF loan will assist Karlsburger Foods, Inc. with the acquisition of machinery and equipment for placement at 3236 Chelsea Road West. For your review, enclosed is the outline used by the EDA for determination of GMEF public purpose and policy compliance. The machinery and equipment loan was approved by the EDA in the amount of $200,000 at a 6.25 % fixed interest rate. Amortized over seven years. Loan fee set at $200 and GMEF legal fees the responsibility of the applicant. On September 19, 2006, the EDA held a public hearing consistent with the Business Subsidy Act: A local government assistance of $ 100,000 or greater requires a public hearing and a copy of the business subsidy agreement must be on file at the city hall. The "Business Subsidy Agreement", page 4, Section 6. within the Loan Agreement states the machinery and equipment loan will retain and relocate 16 existing full-time jobs to Monticello at an average hourly wage of at least $21.37 per hour, exclusive of benefits, and create an additional four new jobs at an hourly wage level of at least $18.00 per hour, exclusive of benefits, by two years of the closing date. Annual written reports are required until job and wage goals are satisfied. Failure to meet the job and wage level goals requires the Karlsburger Foods, Inc. to repay the EDA a pro -rata share of the outstanding principal amount plus interest. At the EDA meeting of September 19, Mike Maher, President of Karlsburger, requested that the amortization term of the loan be amended from seven years to amortized over 15 years with a balloon payment in year five. The EDA agreed to the requested amendment because the M City Council Agenda - 09/25/06 longer amortization period deceases the amount of the monthly payments at a time when cash is important to a growing and expanding company. Full payment of the remaining balance of the loan is due in five years. After review of the EDA outline for GMEF public purpose and policy compliance and the drafted business subsidy agreement, the EDA requests the City Council consider the following actions. 1. A motion ratifying the EDA approval of GMEF Loan No. 025 for Karlsburger Foods, Inc. is consistent with the GMEF Guidelines and approving the Business Subsidy Agreement within the Loan Agreement between the EDA and Karlsburger Foods, Inc. 2. A motion stating that City Council has determined the EDA approval of GMEF Loan No. 025 for Karlsburger Foods, Inc. was issued in violation of the GMEF Guidelines; therefore, the Council reverses the decision by the EDA for loan approval. The City Administrator and Economic Development Director recommend Alternative No. 1. The loan approval complies with the EDA-GMEF Criteria, the Business Subsidy Act, and the City's objective and goals. The said loan encourages economic development through the additional of 20 good -paying jobs to Monticello. GMEF criteria used by the EDA, letter from lenders, EDA public hearing notice, and Loan Agreement. K a Fill EDA Agenda - 09/05/06 New Business: A. Consideration to review the preliminary GMEF Loan apDlication from Karlsburger Foods. Inc. A. Reference and Backeround: GMEF Loan Application: See Attachment A. Request is for a machinery & equipment loan. Project Summary: Karlsburger Foods, Inc. is a Minnesota corporation with Mike Maher as chief executive officer. SL Real Estate Holdings LLC dba Karlsburger Foods, Inc. began construction of a 20,000 sq ft office and production facility in the Monticello Business Center on August 15, 2006. In addition to the real estate, the company plans to invest in $315,250 of machinery & equipment. See Attachment B. Karlsburger Foods, Inc. was established in 1965 as a family business in Dayton, MN. If the amount of the approved Business Subsidy by a local government entity exceeds $ 100,000, a public hearing is necessary and the Loan Agreement Business Subsidy Agreement is available for review. The EDA should review the preliminary application for compliance with the EDA-GMEF Business Subsidy Criteria. I Uses Construction $1,939,510 Land $ 245,182 M&E $ 315,250 TOTAL USES $2,499,942 M-01 Sources Construction Lender I" mortgage $1,070,000 Lender 2nd mortgage $ 818,649 Line -of -credit $ 100,000 Subtotal Land Equity $ 101,434 TIF $ 143,748 Subtotal Machinery & Equipment Lender (Min 60% $189,150)$ 210,750 GMEF (Max 30%) $ 95,000 Equity (Min 10% EDA) $ 9,500 Subtotal TOTAL SOURCES EDA Agenda - 09/05/06 $ 245,182 $ 315,250 Criteria: 30% of M&E $95,000 or 30% of project costs $750,000 , � I I � I J 011111111111 1!111111 111!1�� $2,549,081 PUBLIC PURPOSE CRITERIA: Must comply with four or more of the criteria listed below, criteria #1 being mandatory. 1. Job Goal: 20 full-time jobs to the City of Monticello within two years of the benefit date. Wage Goal: At least 90% of the new jobs must pay a wage of the higher of $9.00 per hour, or at least 160% of the federal minimum wage, exclusive of benefits, for individuals over the age of 20 during the term of the assistance. See Attachment C. Annual reports are required until termination date. Failure to meet job and wage goals require partial or fall payment of the assistance plus interest. N W, I. N EDA Agenda - 09/05/06 2. Increases the community tax base: Annual $31,683 Total Annual $21,232 Local Annual EMV $1,000,000 at least. 3. Factors: To assist a new industrial business to expand their operation. Other factors for consideration but not limited to: Nature of business (office/production), present availability of product or service (none), potential adverse environmental effect (acceptable food processing), and compatibility to the comprehensive plan, covenants, and zoning policy (yes, I- I A and Otter Creek covenants) 4. Used as a secondary source to supplement conventional financing. The GMEF is a secondary source of financing for machinery & equipment. 5. Used as gap financing -Used to encourage growth and job creation in Monticello. 6. Used to assist other funds: Primary conventional lender for real estate development.. Land reduction and trunk fees - TIF Industrial business: Yes. Located within city limits: Yes, Zoned I- I A Credit worthy existing business: Letter of Line of Credit and permanent financing, First Federal Savings Bank, Baxter, MN. $ 10,000 loan per each job created. $ 10,000 X 20 = $200,000. Or $5,000 per every $20,000 increase in property market valuation or increase in personal property, whichever is higher = $250,000 and $78,812.50, respectively. FINANCING METHOD: Companion Direct Loan: All such loans may be subordinated to the primary lender if M EDA Agenda - 09/05/06 requested by the primary lender. The GMEF is leveraged and the lower interest rate of the GMEF lowers the effective interest rate on the entire project. Machinery and equipment IV. TERMS AND CONDITIONS: Loan Size: Maximum not to exceed 50% of the remaining revolving loan fund balance. Cash balance as of December 2005 $679,480.54 Criteria: $339,740 w/o amount earmarked for return of Liquor Funds in 2006. Leveraging: Minimum 60% private/public non-GMEF Maximum 30% public (GMEF) Minimum 10% equity of EDA loan Loan Tenn: Personal property term not to exceed life of equipment (generally 5-7 years.) Interest Rate: Fixed rate not less than 2% below Minneapolis prime rate. Prime rate per US Bank of Minneapolis on date of EDA loan approval. Prime rate September 5, 2006 8.25%. Loan Fee: Minimum fee of $200 but not to exceed 1.5% of the total loan project. Paid by applicant to the EDA within five working days after City Council approval of GMEF loan. Non-refundable. Loan fee may be incorporated into project costs. EDA retains the right to reduce or waive loan fee or portion of loan fee. Options: Minimum fee of $200 or not to exceed 1.5% of GMEF loan, due and payable not later than September 29, 2006. Prepayment Policy: No penalty for prepayment. Deferral of Payments: 1. Approval of the EDA membership by majority vote. 31 2. Extend the balloon if unable to refinance, verification letter from two lending institutions subject to Board approval. Late Payment Policy: Failure to pay principal or interest when due may result in the loan being immediately called. Interest limitation on guaranteed loanNi of applicable. Assumability of loan: None. Business equity requirements: Subject to type of loan; Board of Directors will determine case by case, analysis under normal lending guidelines. Collateral: Personal and/or corporate guarantees (requires unlimited personal guarantees) as per the GMEF attorney. Machinery & equipment liens (except equipment exempt from bankruptcy.) Non-performance: An approved GMEF loan shall be null and void if funds are not drawn upon or disbursed within 180 days from date of EDA approval. September 5, 2006 EDA approval - loan becomes null and void March 5, 2007. Non-performance extension: Not applicable. Legal Fees: Responsibility of the GMEF applicant. Recommendation is to review this information prior to the EDA meeting for discussion and potential questions. Mike Maher and Paul Cserpes will be at the EDA meeting. Consideration to approve or deny GMEF Loan No. 025 and/or call for a public hearing date is the next agenda item. Preliminary GMEF application, job and wage -level goals, list of machinery & Equipment and Articles of Incorporation. 5 32 August 31, 2006 011ie Koropchak Economic Development City of Monticello 505 Walnut Street, Suite 1 Monticello, MN 55372 -. M 14091 Baxter Drive, Suite 117 - Baxter, MN 56425 Phone: (218) 824-8400 * Fax: (218) 824-8402 Michael Maher, the P - resideptghd;`.C-L-0 of,,XarI§bu I r6e to rTQ ods, Inc. asked me contact you in regards too.oqs�[hess i ith First'Federal Savings rQla, Bank. Karlsburger Fds.has��'receritly expanded e into 1p0ticello and as part of the expansion, First Fed er''a''I"Sa'Vi ng s Bank`'ravided financing for their property acquisition and also estab,lish6d x;,$100,00,0:;:00 o ra"g lineof credit. Karlsburger Foods, Inc. is a historically profitable corn ,pahy that was well 6di positioned financially to expbkeir businie'sis, Oper-atiohbt thi's time. We deem their company very credit w6rthy based on our review of,the financial information that we have been provided. �Pl ease feel fre6'o--boritadt me at 218/824-8588 if you have any questions or need any additional information. Sincerely, FIRST FEDERAL SAVINGS BANK Paul Means Chief Executive Officer am Servin a Communities 5 In: Morris - Crust oke - Rrprkpnridrp - Rin inkp - Rpnqnn - Raxtpr 33 09/06/2006 10:19 7633231745 AUG -31-2008 THU 04:66 PM VELLS FARGO ANOKA August 31, 2006 RE: Karlsburger Foods Inc, 12450 Fembrook LN N Dayton MN 55327 K ARLSBURGER FOODS PAGE 01/01 FAX NO, 6126673622 P, 02 Twin Cities RLMinfw9a Bank;ng MAC N9214-020 Anoka Office 2015'n)lrd Avenue North Anolai, MN 55303 P.` ko,. ocbe- The above named compaay currently has a low six figure revolving line of credit available for the purchase of equipment. Karlsburger Foods Inc. has been a valued cusrtorner of the bank since October, 1968 and their amounts and borrowings have been handled as agreed. If you require auy additional information, please give me a call at 612-316-1933. Sincerely, Ted Verlee Assistant dice President 34 V) C: 0- 0 0 0 0 0- 0) - L) -0 0 N a) a -7 Ln O. 0 L) -0 L) C) 0 0 0 0 w 0 0 *;) N " 0 Q. 0 O'o O. 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O Co C, SO) 0 0 - L) C) 0 L) 0 o 0 ow Ca L) o ? 0 0 0 0 LD 64!�r,15� 0 "1 "o C, Lf) Ca M N 0 0) 0) -W 00 �C� t:,- . 0 Q-0 'n >-00l) O� - cl) W Lo C�in 0) -:� o'n o 0, wo)-lo w a) 0) r'!Cn 0 "') C) CD 7ir 0 -0 C),4 o D cr, 5- c 0) os --6 Z C,4 C> tt -I W M �� (S) Os S -0 S o S bo .10-60 .o 0 0 CD o w CO t-, oc> CCD 0 OHO �a � 0) ,34 o 0) 0 L) 00 0) -:-, us AUG L) — 0 C- in (1) a 6°70".@° 0 -50 0S2cr C) 0 tt - 03 0 C- U) 0 w la 35 This Loan Agreement ("Agreement") is made this day of , 2006, by Karlsburger Foods, Inc., a Minnesota corporation ("Borrower") and the Economic Development Authority in and for the City of Monticello, Minnesota, a public body corporate and politic under the laws of Minnesota ("Lender"). RECITALS A. In consideration for the loan contemplated by this Agreement, Borrower is executing and delivering to Lender this Loan Agreement. B. Lender agrees to loan to Borrower the maximum amount of $200,000 to finance the acquisition of the machinery and equipment described in Exhibit A attached hereto ("Machinery and Equipment"), for placement at a new production and warehouse facility under construction at 3236 Chelsea Road West ("Property") in the City of Monticello, Minnesota (the "City"). ACCORDINGLY, to induce Lender to make the Loan to Borrower, and for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: I . The Loan Amount. Subject to and upon the terms and conditions of this Agreement, Lender agrees to loan to Borrower the sum of Two Hundred Thousand and no/100ths Dollars ($200,000), or so much thereof as is disbursed to Borrower in accordance with this Agreement ("Loan"). The Loan shall be evidenced by a promissory note ("Note") payable by Borrower to Lender and substantially in the form of Exhibit B attached to this Agreement, which shall be dated as of the date of this Agreement. Proceeds of the Loan shall be disbursed in accordance with Section 3 hereof. 2. Re-oavinent of Loan. The Loan shall be repaid with interest as follows: (a) Payments of Interest at the rate of six and one-quarter percent (6.25%) per annum shall accrue from the Loan Closing Date (as hereinafter defined), and continue on the first day of each and every month thereafter until the Loan is repaid in full. Such payments shall fully amortize the interest over fifteen (15) years; provided, however, the entire remaining balance of interest shall be due and payable in full on the first day of the sixty- first (61st) month following the Loan Closing Date. (b) Payments of principal shall commence on 20 —(the "Initial Payment Date") and continue on the first day of each and every month thereafter until paid in fall. Such payments shall fully amortize the principal over fifteen (15) years; provided, however, the entire remaining unpaid balance of principal shall be due and payable in full on the first day of the sixty-first (61 st) month following the Loan Closing Date. 3. Disbursement of Loan Proceeds. wo (a) The Loan proceeds shall be paid to Borrower on 2006 or such other date as the parties hereto agree ("Loan Closing Date"). (b) The following events shall be conditions precedent to the payment of the Loan proceeds to Borrower on the Loan Closing Date: (i) Borrower having executed and delivered to Lender, prior to the Loan Closing Date and without expense to Lender, executed copies of this Agreement, the Note, and a security agreement in substantially the form set forth as Exhibit C hereto (the "Security Agreement"), and Borrower further having caused to be executed and delivered to Lender a guaranty in substantially the form set forth hereto at Exhibit D (the "Guaranty"); (ii) Borrower having provided evidence satisfactory to Lender that Borrower has established a separate accounting system for the exclusive purpose of recording the receipt and expenditure of the Loan proceeds; and (iii) Borrower having paid $200 to Lender as a loan origination fee; and (iv) Borrower having paid to Lender the full amount of the legal fees incurred 'by Lender in the negotiation and preparation of this Agreement and any other agreement or instrument securing the Loan. (v) Borrower having provided evidence satisfactory to Lender that Borrower has obtained adequate financing to complete all activities related to Borrower's undertakings on the Property. 4. Representations and Warranties. Borrower represents and warrants to Lender that: (a) Borrower is duly authorized and empowered to execute, deliver, and perforin this Agreement and to borrow money from Lender. (b) The execution and delivery of this Agreement, and the performance by Borrower of its obligations hereunder, do not and will not violate or conflict with any provision of law and do not and will not violate or conflict with, or cause any default or event of default to occur under, any agreement binding upon Borrower. (c) The execution and delivery of this Agreement has been duly approved by all necessary action of Borrower, and this Agreement has in fact been duly executed and delivered by Borrower and constitutes its lawful and binding obligation, legally enforceable against it. (d) Borrower warrants that it shall keep and maintain books, records, and other documents relating directly to the receipt and disbursements of Loan proceeds and that any duly authorized representative of Lender shall, at all reasonable times, have access to and 0, MA the right to inspect, copy, audit, and examine all such books, records, and other documents of Borrower pertaining to the Loan until the completion of all closeout procedures and the final settlement and conclusion of all issues arising out of this Loan. (e) Borrower warrants that it has fully complied with all applicable state and federal laws pertaining to its business and will continue to comply throughout the terms of this Agreement. If at any time Borrower receives notice of noncompliance from any governmental entity, Borrower agrees to take any necessary action to comply with the state or federal law in question. (f) Borrower warrants that it will use the proceeds of the Loan made by Lender solely for the Machinery and Equipment. (g) Borrower warrants that it will not create, permit to be created, or allow to exist any liens, charges, or encumbrances prior to the obligation created by this Loan Agreement, except as otherwise authorized in writing by Lender. 5. Event of Default by Borrower. The following shall be Events of Default under this Agreement: (a) failure to pay any principal or interest on the Loan when due; (b) any representation or warranty made by Borrower herein or in any document, instrument, or certificate given in connection with this Agreement, the Note, or the Security Agreement that is false when made; (c) Borrower fails to pay its debts as they become due, makes an assignment for the benefit of its creditors, admits in writing its inability to pay its debts as they become due, files a petition under any chapter of the Federal Bankruptcy Code or any similar law, state or federal, now or hereafter existing, becomes "insolvent" as that term is generally defined under the Federal Bankruptcy Code, files an answer admitting insolvency or inability to pay its debts as they become due in any involuntary bankruptcy case commenced against it, or fails to obtain a dismissal of such case within thirty (30) days after its commencement or convert the case from one chapter of the Federal Bankruptcy Code to another chapter, or be the subject of an order for relief in such bankruptcy case, or be adjudged a bankrupt or insolvent, or has a custodian, trustee, or receiver appointed for, or has any court take jurisdiction of its property, or any part thereof, in any proceeding for the purpose of reorganization, arrangement, dissolution, or liquidation, and such custodian, trustee, or receiver is not discharged, or such jurisdiction is not relinquished, vacated, or stayed within thirty (30) days of the appointment; (d) a garnishment summons or writ of attachment is issued against or served upon Lender for the attachment of any property of Borrower in Lenders possession or any indebtedness owing to Borrower, unless appropriate papers are filed by Borrower contesting the same within thirty (30) days after the date of such service or such shorter period of time as may be reasonable in the circumstances; 3 38 (e) any breach or failure of Borrower to perform any other term or condition of this Agreement not specifically described as an Event of Default in this Agreement and such breach or failure continues for a period of thirty (30) days after Lender has given written notice to Borrower specifying such default or breach, unless Lender agrees in writing to an extension of such time prior to its expiration; provided, however, if the failure stated in the notice cannot be corrected within the applicable period, Lender will not unreasonably withhold its consent to an extension of such time if corrective action is instituted by Borrower within the applicable period and is being diligently pursued until the Default is corrected, but no such extension shall be given for an Event of Default that can be cured by the payment of money (i.e., payment of taxes, insurance premiums, or other amounts required to be paid hereunder); (f) any breach by Borrower of any other agreement between Borrower, and Lender, the City of Monticello, Minnesota, or the Housing and Redevelopment Authority in and for the City of Monticello, Minnesota (the "HRA"). 6. Business Subsidv A2reement.,_,)be provisions of this Section constitute the "business subsidy agreement" t6f the purposes of the Business Subsidy Act. (a) General Terms. The parties agree and represent to each other as follows: (i) The subsidy provided to the Borrower consists of the principal amount of the Loan described in Section 1. (ii) The public purposes of the subsidy are to purchase the Machinery and Equipment for placement at the Property, thereby increasing net jobs in the City and the State and increasing the tax base of the City and the State. (iii) The goals for the subsidy are: to purchase the Machinery and Equipment for placement at the Property; to maintain such Machinery and Equipment at the Property; and to create the jobs and wage levels in accordance with Section 6(b) hereof. (iv) If the goals described in clause (iii) are not met, the Borrower must make the payments to the Lender described in Section 6(c). (v) The subsidy is needed to purchase the Machinery and Equipment for placement at the Property. (vi) The Borrower must continue to use the aforementioned Machinery and Equipment at the Property for at least five years after the Benefit Date (defined hereinafter). (vii) The Borrower does not have a parent corporation. 4 39 (viii) The Borrower has not received, and does not expect to receive, financial assistance from any other "grantor" as defined in the Business Subsidy Act, in connection with the Property. (b) Job and Wage Goals. The "Benefit Date" of the assistance provided in this Agreement is the Loan Closing Date. Within two years after the Benefit Date (the "Compliance Date"), the Borrower shall (i) retain at least 16 full-time permanent jobs permanent to the Property from another location outside the City, (ii) cause the average hourly wage of the 16 retained jobs to be at least $21.37 per hour, exclusive of benefits; (iii) cause to be created at least four new full-time permanent jobs on the Property (above and beyond the 16 retained jobs); and (iv) cause the average hourly wage of the four new jobs to be $18.00 per hour, exclusive of benefits. Jobs created by tenants of the Property will count toward the requirements of this Section. Notwithstanding anything to the contrary herein, if the wage and job goals described in this paragraph are met by the Compliance Date, those goals are deemed satisfied, The Lender may, after a public hearing, extend the Compliance Date by up to one year, provided that nothing in this section will be construed to limit the Lender's legislative discretion regarding this matter. (c) Remedies. If the Borrower fails to meet the goals described in Section 6(a)(iii), the Borrower shall repay to the Lender upon written demand from the Lender a "pro rata share" of the outstanding principal amount of the Loan together with interest on that amount at the implicit price deflator as defined in Minnesota Statutes, Section 275.50, subd. 2. The term "pro rata share" means percentages calculated as follows: (i) if the failure relates to the number of jobs, the jobs required less the jobs created, divided by the jobs required; (ii) if the failure relates to wages, the number of jobs required less the number of jobs that meet the required wages, divided by the number of jobs required; (iii) if the failure relates to use of the Machinery and Equipment at the Property in accordance with Section 6(a)(vi), 60 less the number of months of use of the Machinery and Equipment at the Property (where any month in which the Machinery and Equipment is in use for at least 15 days constitutes a month of use), commencing on the Benefit Date and ending with the date the Machinery and Equipment ceases use as determined by the Authority Representative, divided by 60; and (iv) if more than one of clauses (i) through (iii) apply, the sum of the applicable percentages, not to exceed 100%. Nothing in this Section shall be construed to limit the Lender's remedies under Section 7 hereof. In addition to the remedy described in this Section and any other remedy available to the Lender for failure to meet the goals stated in Section 6(a)(iii), the Borrower agrees and understands that it may not a receive a business subsidy from the Lender or any grantor (as 5 M defined in the Business Subsidy Act) for a period of five years from the date of the failure or until the Borrower satisfies its repayment obligation under this Section, whichever occurs first. (d) Reports. The Borrower must submit to the Lender a written report regarding business subsidy goals and results by no later than February 1 of each year, commencing February 1, 2007 and continuing until the later of (i) the date the goals stated Section 6(a)(iii) are met; (ii) 30 days after expiration of the period described in Section 6(a)(vi); or (iii) if the goals are not met, the date the subsidy is repaid in accordance with Section 6(c). The report must comply with Section 116J.994, subdivision 7 of the Business Subsidy Act. The Lender will provide information to the Borrower regarding the required forms. If the Borrower fails to timely file any report required under this Section, the Lender will mail the Borrower a warning within one week after the required filing date. If, after 14 days of the postmarked date of the warning, the Borrower fails to provide a report, the Borrower must pay to the Lender a penalty of $100 for each subsequent day until the report is filed. The maximum aggregate penalty payable under this Section $1,000. 7. Lender's Remedies upon Borrower's Default. Upon an Event of Default by Borrower and after provision by Lender of written notice, Lender shall have the right to exercise any or all of the following remedies (and any other rights and remedies available to it): (a) declare the principal amount of the Loan and any accrued interest thereon to be immediately due and payable upon providing written notice to Borrower; (b) suspend its performance under this Loan Agreement; (c) take any action provided for at law to enforce compliance by Borrower with the terms of this Agreement and the Note; (d) exercise its rights under the Guaranty; and (e) exercise its rights under the Security Agreement. In addition to any other amounts due on the Loan, and without waiving any other right of Lender under any this Agreement or any other instrument securing the Loan applicable documents, Borrower shall pay to Lender a late fee of $250 for any payment not received in full by Lender within 30 calendar days of the date on which it is due. Furthermore, interest will continue to accrue on any amount due until the date on which it is paid to Lender, and all such interest will be due and payable at the same time as the amount on which it has accrued. 8. Lender's Costs of Enforcement of Agreement. If an Event of Default has occurred as provided herein, then upon demand by Lender, Borrower shall pay or reimburse Lender for all expenses, including all attorneys fees and expenses incurred by Lender in connection with the enforcement of this Agreement and the Note, or in connection with the protection or enforcement of the interests and collateral security of Lender in any litigation or bankruptcy or insolvency rel 41 proceeding or in any action or proceeding relating in any way to the transactions contemplated by this Agreement. 9. Indemnification. (a) Borrower shall and does hereby agree to protect, defend, indemnify and hold Lender, and its officers, agents, and employees, harmless of and from any and all liability, loss, or damage that it may incur under or by reason of this Agreement, and of and from any and all claims and demands whatsoever that may be asserted against Lender by reason of any alleged obligations or undertakings on its part to perform or discharge any of the terms, covenants, or agreements contained herein. (b) Should Lender, or its officers, agents, or employees incur any such liability or be required to defend against any claims or demands pursuant to Section 9, or should a judgment be entered against Lender, the amount thereof, including costs, expenses, and attorneys fees, shall bear interest thereon at the rate then in effect on the Note, shall be secured hereby, shall be added to the Loan, and Borrower shall reimburse Lender for the same immediately upon demand, and upon the failure of Borrower to do so, Lender may declare the Loan immediately due and payable. (c) This indemnification and hold harmless provision shall survive the execution, delivery, and performance of this Agreement and the creation and payment of any indebtedness to Lender. Borrower waives notice of the acceptance of this Agreement by Lender. (d) Nothing in this Agreement shall constitute a waiver of or limitation on any immunity from or limitation on liability to which Borrower is entitled under law. 10. Miscellaneous. (a) Waiver. The performance or observance of any promise or condition set forth in this Agreement may be waived, amended, or modified only by a writing signed by Borrower and Lender. No delay in the exercise of any power, right, or remedy operates as a waiver thereof, nor shall any single or partial exercise of any other power, right, or remedy. (b) Assignment. This Agreement shall be binding upon Borrower and its successors and assigns and shall inure to the benefit of Lender and its successors and assigns. All rights and powers specifically conferred upon Lender may be transferred or delegated by Lender to any of its successors and assigns. Borrower's rights and obligations under this Agreement may be assigned only when such assignment is approved in writing by Lender. (c) Governing Law. This Agreement is made and shall be governed in all respects by 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 7 42 based on convenience or otherwise. (d) Severability. If any provision or application of this Agreement is held unlawful or unenforceable in any respect, such illegality or unenforceability shall not affect other provisions or applications that can be given effect, and this Agreement shall be construed as if the unlawful or unenforceable provision or application had never been contained herein or prescribed hereby. (e) Notice. All notices required hereunder shall be given by depositing in the U.S. mail, postage prepaid, certified mail, return receipt requested, to the following addresses (or such other addresses as either party may notify the other): To Lender: Economic Development Authority in and for the City of Monticello, Minnesota 505 Walnut Street, Suite 1 Monticello, MN 55362 Attn: Executive Director To Borrower: Karlsburger Foods, Inc. 12450 Fernbrook Lane Dayton, MN 55327 Attn: Michael Maher (f) Termination. If the Loan is not disbursed pursuant to this Agreement by 2007 or within 180 days of date of EDA approval, this Agreement shall terminate and neither party shall have any further obligation to the other, except that if the Loan is not disbursed because Borrower has failed to use its best efforts to comply with the conditions set forth in Section 3 of this Agreement then Borrower shall pay to Lender all reasonable attorneys fees, costs, and expenses incurred by Lender in connection with this Agreement and the Note. (g) Entire Agreement. This Agreement, together with the Exhibits hereto, which are incorporated by reference, constitutes the complete and exclusive statement of all mutual understandings between the parties with respect to this Agreement, superseding all prior or contemporaneous proposals, communications, and understandings, whether oral or written, concerning the Loan. (h) Headings. The headings appearing at the beginning of the several sections contained in this Agreement have been inserted for identification and reference purposes only and shall not be used in the construction and interpretation of this Agreement. 43 IN WITNESS WHEREOF, this Agreement has been duly executed and delivered by the proper officers thereunto duly authorized on the day and year first written above. ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO, MINNESOTA By: Title: By: Title: I 1-4-RDIMI 9 44 RIII E! I I! F I W�i m Title: W-VIPI 11111 IlIk!j V i �' 10 45 11 1 5041111 oil 1 11 1 Item No. Description HPS3672 Marion Mixer Lee Steam Kettle, Style D 1590-2 Volumetric Technology Twin Head Piston Filler 912-2 Volumetric Technology Twin Lane Cup Filler SKIOB Sure Kaps Hand Capper A & K Equipment Warehouse Racking Boiler I 11 0114' of t, ti. $200,000 6.25% ,2006 Karlsbur)zer Foods, Inc., a Minnesota corporation ("Maker"), for value received, hereby promises to pay to the Economic Development Authority in and for the City of Monticello, Minnesota, a public body corporate and politic under the laws of Minnesota or its assigns (Authority and any assigns are collectively referred to herein as "Holder"), at its designated principal office or such other place as the Holder may designate in writing, the principal sum of Two Hundred Thousand and no/100ths Dollars ($200,000) or so much thereof as may be advanced under this Note, with interest as hereinafter provided, in any coin or currency that at the time or times of payment is legal tender for the payment of private debts in the United States of America. The principal of and interest on this Note is payable in installments due as follows: 1. Interest at the rate of six and one-quarter percent (6.25%) per annum shall accrue from the Loan Closing Date, as defined in the loan agreement of even date between Borrower and Lender ("Loan Agreement") until the Loan is repaid in full. 2. Payments on the Loan shall be as follows: (a) Payments of Interest at the rate of six and one-quarter percent (6.25%) per annum shall accrue from the Loan Closing Date (as hereinafter defined), and continue on the first day of each and every month thereafter until the Loan is repaid in full. Such payments shall fully amortize the interest over fifteen (15) years; provided, however, the entire remaining balance of interest shall be due and payable in full on the first day of the sixty-first (61 st) month following the Loan Closing Date. (b) Payments of principal shall commence on , 20 (the "Initial Payment Date") and continue on the first —day of each andeverymonth thereafter until paid in full. Such payments shall fully amortize the principal over fifteen (15) years; provided, however, the entire remaining unpaid balance of principal shall be due and payable in full on the first day of the sixty-first (61 st) month following the Loan Closing Date, 3. The Maker shall have the right to prepay the principal of this Note, in whole or in part, on any date that a principal and interest payment is due and payable. 4. This Note is given pursuant to the Loan Agreement, and is secured by a security agreement of even date herewith delivered by the Maker (the "Security Agreement"), and a guaranty of even date herewith delivered by Michael Maher, Paul Cserpes, and Lisa Taylor (the B -I 47 "Guaranty"). If either the Loan Agreement, the Security Agreement, or the Guaranty is found to be invalid for whatever reason, such invalidity shall constitute an Event of Default hereunder. All of the agreements, conditions, covenants, provisions, and stipulations contained in the Loan Agreement, the Security Agreement, the Guaranty, or any other instrument securing this Note are hereby made a part of this Note to the same extent and with the same force and effect as if they were fully set forth herein. It is agreed that time is of the essence of this Note. If an Event of Default occurs under the Loan Agreement, the Security Agreement, the Guaranty, or any other instrument securing this Note, then the Holder of this Note may at its right and option, without notice, declare immediately due and payable the principal balance of this Note and interest accrued thereon, together with reasonable attorneys fees and expenses incurred by the Holder of this Note in collecting or enforcing payment hereof, whether by lawsuit or otherwise, and all other sums due hereunder or any instrument securing this Note. The Maker of this Note agrees that the Holder of this Note may, without notice to and without affecting the liability of the Maker, accept additional or substitute security for this Note, or release any security or any party liable for this Note or extend or renew this Note. 5. The remedies of the Holder of this Note as provided herein, and in the Loan Agreement, the Security Agreement, the Guaranty, or any other instrument securing this Note shall be cumulative and concurrent and may be pursued singly, successively, or together, and, at the sole discretion of the Holder of this Note, may be exercised as often as occasion therefor shall occur; and the failure to exercise any such right or remedy shall in no event be construed as a waiver or release thereof. The Holder of this Note shall not be deemed, by any act of omission or commission, to have waived any of its rights or remedies hereunder unless such waiver is in writing and signed by the Holder and then only to the extent specifically set forth in the writing. A waiver with reference to one event shall not be construed as continuing or as a bar to or waiver of any right or remedy as to a subsequent event. This Note may not be amended, modified, or changed except only by an instrument in writing signed by the party against whom enforcement of any such amendment, modifications, or change is sought. 6. If any term of this Note, or the application thereof to any person or circumstances shall, to any extent, be invalid or unenforceable, the remainder of this Note, or the application of such term to persons or circumstances other than those to which it is invalid or unenforceable shall not be affected thereby, and each term of this Note shall be valid and enforceable to the fullest extent permitted by law. i. It is intended that this Note is made with reference to and shall be construed as a Minnesota contract and is governed by the laws thereof. 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. 8. The performance or observance of any promise or condition set forth in this Note may be waived, amended, or modified only by a writing signed by the Maker and the Holder. No B-2 48 delay in the exercise of any power, right, or remedy operates as a waiver thereof, nor shall any single or partial exercise of any other power, right, or remedy. 9. IT IS HEREBY CERTIFIED AND RECITED that all conditions, acts, and things required to exist, happen, and be performed precedent to or in the issuance of this Note do exist, have happened, and have been performed in regular and due form as required by law. IM IN WITNESS WHEREOF, the Maker has caused this Note to be duly executed as of the day of -,20—. I a] Title: B-4 50 THIS SECURITY AGREEMENT, dated as of July _, 2006, is made and entered into by and between KARLSBURGER FOODS, INC. (the "Debtor"), a Minnesota corporation with its principal place of business at 12450 Fernbrook Lane, Dayton, Minnesota 55327 and the ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO, MINNESOTA (the "Secured Party"), a public body corporate and politic, with its principal place of business at 505 Walnut Street, Suite 1, Monticello, Minnesota 55362. 1. Securitv Interest and Collateral. To secure the payment of the Note in the original aggregate principal amount of $200,000, issued pursuant to a Loan Agreement dated as of , 20_, between the Debtor and the Secured Party, the proceeds of which will be applied to the acquisition of machinery and equipment for use at a production and warehouse facility located at 3236 Chelsea Road West in the City of Monticello, Minnesota (the "Facility"), the Debtor hereby grants the Secured Party a security interest (herein called the "Security Interest") in the following property (herein called the "Equipment"): any and all machinery and equipment acquired with the proceeds of the Note and installed in, attached to, or used in connection with the Facility, as described in Exhibit A of the Loan Agreement, together with all parts, additions, replacements, and repairs to the Equipment now or hereafter installed in, attached to, or used in the Facility, and the proceeds thereof (collectively with the Equipment, the "Collateral"). 2. Debtor's Representations. Warranties. and Covenants. Debtor represents, warrants, covenants-, and agrees as follows: (a) Orizanization. The Debtor is a Minnesota corporation, and Debtor has full power and authority to execute, deliver, and perform this Security Agreement, and to own its property and conduct its business as presently conducted and as proposed to be conducted, (b) Authorization. The execution, delivery, and performance of this Security Agreement by the Debtor has been duly authorized by all necessary action and will not: (i) require any consent or approval of any entity which has not been obtained; or (ii) violate any material provision of any indenture, contract, agreement or instrument to which Debtor is a party or by which it is bound. (c) Performance by Debtor. Unless Debtor obtains Secured Party's written consent to the contrary, or except as provided in the Loan Agreement, Debtor shall not: C-1 51 (i) terminate its interest in any of the Collateral; or (ii) sell, transfer, or assign, or offer to sell, transfer or assign all or any part of the Collateral or permit all or any part of the Collateral to be sold, transferred, or assigned; or (iii) remove or consent to the removal of any of the Equipment from the Facility. (d) Title to Collateral. Debtor shall keep good marketable title to all of the Collateral, and none of the Collateral is subject to any lien or security interest except for the security interest created by this Security Agreement and other security interests consented to in writing by Secured Party. Debtor has not granted, and will not grant or permit to exist, any lien or security interests in all or a portion of the Collateral other than the liens in favor of Secured Party and other liens consented to in writing by Secured Party. Debtor shall defend the Collateral against all claims and demands of all and any other persons at any time claiming any interest therein adverse to Secured Party. (e) Actions and Proceedings. There are no actions at law, suits in equity, or other proceedings before any governmental agency, commission, bureau, tribunal, or other arbitration proceedings against or affecting Debtor, that if adversely determined would adversely affect Debtor's interest in the Collateral or would adversely affect the rights of Debtor to pledge and assign all or a part of the Collateral or the rights and security afforded Secured Party hereunder. (f) Insurance. The Debtor agrees it will keep the Equipment insured, or cause the Equipment to be kept insured, at all times against loss by fire or other hazards concerning which, in the judgment of the Secured Party, insurance protection is reasonably necessary and in amounts sufficient to protect against loss or damage of the Equipment. Such policy or policies will contain a loss payable clause in favor of Secured Party or its successors or assigns, in form satisfactory to Secured Party, provided, however, that Debtor may, at its reasonable discretion, self -insure the Equipment. (g) No Fixture. If any of the Collateral is or becomes a fixture, Debtor agrees to furnish Secured Party, at Secured Party's request, with a statement or statements signed by all persons who have or claim an interest in the real estate concerned, which statements shall provide that the signer consents to the security interest created hereby and disclaims any interest in the Collateral as fixtures. (h) Understandings Regarding Collateral. Debtor acknowledges that the Collateral is or will be of the design, capacity, and manufacture specified for and by Debtor, and that Debtor is satisfied that the same is or will be suitable for its intended purposes, Debtor further acknowledges and agrees that Secured Party has not made, and does not make, any representation, warranty, or covenant with respect to merchantability, fitness for any purpose, durability, patent, copyright or trademark infringement, suitability, or capability of any item of Collateral in any respect or in connection with any other purpose or use of Debtor, or any other representation, warranty, or covenant of any kind or character expressed or implied with respect thereto. Debtor accordingly agrees not to assert any claim whatsoever against Secured Party WJ M based thereon. Debtor further agrees, regardless of cause, not to assert any claim whatsoever against Secured Party for loss of anticipatory profits or consequential damages. (i) Use of Collateral. The Collateral will be used for its intended business purpose and will at all times be located at the Facility, except as provided in the Loan Agreement. 0) Condition of Collateral. Debtor will keep the Collateral in good condition and repair, reasonable wear and tear excepted, and will permit Secured Party to enter the Facility at reasonable times and upon reasonable notice for the purpose of examining the Collateral. (k) Costs of Collection. In the event of any action or proceeding to collect or realize upon the Collateral or to enforce any of Secured Party's rights hereunder, the Debtor shall pay: (i) all of Secured Party's attorneys fees and legal expenses, with interest thereon, incurred by the Secured Party; (ii) all taxes, levies, insurance expenses, and costs of repairs to, or maintenance of, the Collateral; and (iii) all costs of the Secured Party reasonably incurred in taking possession of, disposing of, or preserving the Collateral after any Event of Default (defined below). 3. Event of Default. Upon the occurrence of a default in the payment of the Note, in the Loan Agreement dated as of , 2006, between the Debtor and the Secured Party (the "Loan Agreement") or in this Security Agreement, the Secured Party may exercise any remedy available to it under the terms of the Loan Agreement, the Note, or this Security Agreement, and may, without limiting any other right or remedy available to it, exercise and enforce any and all rights and remedies available upon default to a secured party under the Uniform Commercial Code as enacted in the State of Minnesota, Minnesota Statutes, Chapter 336, as amended (the "UCC"), and the Secured Party and all representatives of the Secured Party are hereby granted the right to enter upon any property of the Debtor, without a hearing or prior notice thereof, for the purpose of taking possession of the Collateral. If notice to the Debtor of any intended disposition of the Collateral or any other intended action is required by law in a particular instance, such notice shall be deemed commercially reasonable if given (in the manner specified in this Security Agreement) at least ten calendar days prior to the date of the intended disposition or other action. 4. Further Assurances. The Debtor shall execute and deliver to the Secured Party, promptly and at the Debtor's expense, financing statements, including without limitation a UCC - 1 Financing Statement listing the Equipment and all proceeds thereof as collateral. Debtor agrees that the Secured Party is authorized, at its option, to file a photocopy or other reproduction of this Security Agreement as a financing statement and such photocopy or other reproduction shall be sufficient as a financing statement under the UCC, and the Debtor hereby irrevocably appoints the Secured Party as the Debtor's attorney-in-fact to execute and file, from time to time, on its behalf, one or more financing statements with respect to the Collateral and to execute such other documents and instruments on behalf of the Debtor as the Secured Party, in its sole C-3 53 judgment, shall deem necessary or desirable for the purposes of effectuating this Security Agreement, such power being coupled with an interest. 5. Cumulative Remedies. All of the Secured Party's rights and remedies herein are cumulative and in addition to any rights or remedies available at law or in equity, including the UCC, and may be exercised concurrently or separately. The Debtor shall pay all costs, expenses, losses, damages, and legal costs (including attorneys fees) incurred by the Secured Party as a result of enforcing any terms or conditions of this Security Agreement. 6. No Liabilitv Imposed on the Secured Partv. The Secured Party shall not be obligated to perform or discharge, nor does it hereby undertake to perform or discharge, any obligation, duty, or liability, nor shall this Security Agreement operate to place responsibility for the control, care, or management of the Equipment upon Secured Party; provided, that upon payment in full of the Note, the Secured Party shall execute and file UCC termination statements in the offices in which financing statements with respect to the Collateral are effective. 7. Indemnification. The Debtor hereby agrees to indemnify and to hold the Secured Party harmless of and from any and all liability, loss, or damage which it may or might incur under or by reason of this Security Agreement, and of and from any and all claims and demands whatsoever which may be asserted against it by reason of any alleged obligations or undertakings on its part to perform or discharge any of the terms, covenants, or agreements contained herein. Should the Secured Party incur any such liability or be required to defend against any such claims or demands, or should a judgment be entered against the Secured Party, the amount thereof, including costs, expenses, and attorneys fees, shall bear interest thereon at the rate then in effect on the Note, shall be secured hereby, and shall be added to the obligations of the Debtor secured hereunder. The Debtor shall, reimburse the Secured Party for such additional obligations immediately upon demand, and upon the failure of the Debtor to do so, the Secured Party may declare such additional obligations immediately due and payable. 8. Expenses of Secured Party. All expenses paid or incurred in protecting, storing, warehousing, insuring, handling, and shipping the Collateral, all costs of keeping the Collateral free of liens, encumbrances, and security interests (other than the security interest created by this Security Agreement), and the removing of the same and all excise, property, sales, and use taxes imposed by state, federal, or local authority on any of the Collateral or with respect to the sale thereof, shall be borne and paid for by the Debtor and if the Debtor fails to promptly pay any amounts thereof when due, the Secured Party may, at its option, but shall not be required to, pay the same, and upon such payment the same shall constitute additional obligations of the Debtor and shall bear interest at the rate specified in the Note and shall be secured by the security interests granted hereunder. 9. Continuinp- Rights. The rights and powers of the Secured Party hereunder shall continue and remain in full force effect until the Note (and any additional obligations referred to in Sections 7 and 8 hereof) is paid in full. 10. Books and Records. The Debtor will permit the Secured Party, and its representatives, at reasonable times and upon reasonable notice, to examine the Debtor's books M 54 and records (including data processing records and systems) with respect to the Facility and the Collateral and make copies thereof at any time and from time to time, and the Debtor will famish such information reports to the Secured Party and its representatives regarding the Collateral as the Secured Party and its representatives may from time to time request. The Secured Party shall have the authority, at any time, to require the Debtor to place -upon the Debtor's books and records relating to the Collateral and other rights to payment covered by the security interest created in this Security Agreement a notation stating that any such Collateral and other rights of payment are subject to a security interest in favor of the Secured Party. 11. Successors and Assigns. This Security Agreement and each and every covenant, agreement, and provision hereof shall be binding upon the 'Debtor, and its successors and assigns, and shall inure to the benefit of the Secured Party, and its successors and assigns. 12. Governing Law. This Security Agreement is executed pursuant to and shall be governed by the laws of the State of Minnesota. 13. Severabilitv. It is the intent of this Security Agreement to confer to the Secured Party the rights and benefits hereunder to the full extent allowable by law, including all rights available under the UCC. The unenforceability or invalidity of any provisions hereof shall not render any other provision or provisions herein contained unenforceable or invalid. Any provisions judicially determined to be unenforceable shall be severable from this Security Agreement. 14. Miscellaneous. (a) Waiver. The performance or observance of any promise or condition set forth in this Security Agreement may be waived only in writing. No delay in the exercise of any power, right or remedy operates as a waiver thereof, nor shall any single or partial exercise of any other power, right or remedy. (b) Assi=ment. This Security Agreement shall be binding upon the Debtor, and its successors and assigns, and shall inure to the benefit of the Secured Party, and its successors and assigns. All rights and powers specifically conferred upon the Secured Party may be transferred or delegated by the Secured Party to any of its successors and assigns, including any successor holder of the Note. (c) Certain Defined Terms. Capitalized terms used in this Security Agreement and defined in this Security Agreement or the Note are used with the meanings given in this Security Agreement or the Note. (d) Other Matters. If any provision or application of this Security Agreement is held unlawful or unenforceable in any respect, such illegality or unenforceability shall not affect other provisions or applications which can be given effect, and this Security Agreement shall be construed as if the unlawful or unenforceable provision or application had never been contained herein or prescribed hereby. All representations and warranties contained in this Security Agreement or in any other agreement between Debtor and Secured Party shall survive the C-5 55 execution, delivery, and performance of this Security Agreement and the creation and payment of any indebtedness to Secured Party. Debtor waives notice of the acceptance of this Security Agreement by Secured Party. (e) Notice. All notices required hereunder shall be given by depositing in the U.S. mail, postage prepaid, certified mail, return receipt requested, to the following addresses (or such other addresses as either party may notify the other): To Debtor: Karlsburger Foods, Inc. 12450 Fernbrook Lane Dayton, MN 55327 Attn: Michael Maher To Secured Party: Economic Development Authority in and for the City of Monticello, Minnesota 505 Walnut Street, Suite I Monticello, Minnesota 55362 Attn: Executive Director (The remainder of this page is intentionally left blank.) C-6 56 IN WITNESS WHEREOF, the Debtor and the Secured Party have executed this Security Agreement as of the date set forth above. THIS DOCUMENT DRAFTED BY: Kennedy & Graven, Chartered (MNI) 470 U.S. Bank Plaza 200 South Sixth Street Minneapolis, MN 55402 (612) 337-9300 C-7 57 DEBTOR'S ACKNi r to the Security Agreement, dated 2006 STATE OF MINNESOTA ) ss. COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 2006, by , the of Karlsburger Foods, Inc., a Minnesota corporation, on behalf of the corporation. Notary Public W Signature of the Secured Party with respect to the Security Agreement, dated as of ,2006. i We 9. 1 WM � I i W -l' 10, 1 1 M. t By: President By: Executive Director C-9 59 -S t Wj KY1 - �'S- 7 � Utl'l Ti # V; G 1, 71 Et I T to the Security Agreement, dated as of 2006 STATE OF MINNESOTA ss. COUNTY OF The foregoing instrument was acknowledged before me this — th day of 2006, by and , the President and Executive Director, respectively, of the Economic Development Authority in and for the City of Monticello, Minnesota, a public body corporate and politic, on behalf of the Authority. Notary Public C-10 60 1ANIIIII � � I This Guaranty Agreement is made and entered into this day of , 20_, by Michael Maher, Paul Cserpes, and Lisa Taylor ("Guarantors") for the benefit of the Economic Development Authority in and for the City of Monticello, Minnesota ("Lender"), a public body corporate and politic. WITNESSETH: WHEREAS, Karlsburger Foods, Inc., a Minnesota corporation (the "Borrower") proposes to borrow the sum of $200,000 from Lender for machinery and equipment acquisition for a production and warehouse facility located in the City of Monticello; and WHEREAS, pursuant to the loan agreement of even date herewith between Borrower and Lender (the "Loan Agreement") Borrower has agreed to repay to Lender $200,000 together with interest thereon at the rate and within the time stated in Borrower's promissory note of even date herewith ("Note"); and WHEREAS, to secure payment of the Note, Lender has required, and Guarantors have agreed to provide, a guaranty of the indebtedness above described between Borrower and Lender; and WHEREAS, Guarantors will receive a direct financial benefit from the loan to Borrower by Lender pursuant to the Note. NOW, THEREFORE, to induce Lender to make the loan to Borrower, Guarantors hereby covenant and agree with Lender, for the benefit of all who at any time become holders of the Note, as follows: Section 1.1. Guarantors hereby unconditionally guarantee to Lender for the benefit of the Holder (as defined in the Note) from time to time of the Note: (a) the full and prompt payment of the principal of the Note when and as the same shall become due, whether at the stated maturity thereof, by acceleration or otherwise; (b) the full and prompt payment of any interest on the Note when and as the same shall become due; and (c) any other amounts due Lender under the Loan Agreement or the Note. All payments shall be paid in lawful money of the United States of America. Each and every default in payment of the principal of or interest on the Note shall give rise to a separate cause of action hereunder, and separate suits may be brought hereunder as each cause of action arises. Section 1.2. The obligations of Guarantors under this Guaranty shall be absolute and unconditional and shall remain in full force and effect until the entire principal of and interest on the Note shall have been paid, and such obligations shall not be affected, modified or impaired upon the happening from time to time of any event, including, without limitation, any of the following: D-1 61 a. The compromise, settlement, or release of less than all of the obligations, covenants or agreements of Borrower under the Note; b. The failure to give notice to any person of the occurrence of an event of default under the terms and provisions of this Guaranty or the Note executed by Borrower: C. The extension of the time for payment of principal of or interest on the Note or under this Guaranty; d. Any failure, omission, delay, or lack on the part of Lender to enforce, assert or exercise any right, power, or remedy conferred on Lender in this Guaranty or other instruments executed and delivered in connection with the loan contemplated thereby, or any other act or acts on the part of Lender or any of the holders from time to time of the Note; e. The default or failure of Guarantors to perform any of the obligations set forth in this Guaranty. Section 1.3. No set-off, counterclaim, reduction, or diminution of any obligation, or any defense of any kind or nature that Borrower has or may have Lender shall be available hereunder to Guarantors against Lender. Section 1.4. In the event of a default in the payment of principal of the Note when and as the same shall become due, whether at the stated maturity thereof, by acceleration or otherwise, or in the event of a default in the payment of any interest on the Note when and as the same shall become due, or upon the occurrence and continuance of any Event of Default under the Agreement, Lender may proceed hereunder; and Lender, in its sole discretion, shall have the right to proceed first and directly against either Guarantor or both Guarantors for the full amount due without proceeding against or exhausting any other remedies it may have as to Borrower. Section 1.5. Guarantor hereby expressly waives notice from Lender or the holders from time to time of the Note of acceptance of or any reliance upon this Guaranty. Guarantors agree to pay all the costs, expenses, and fees, including attorneys' fees, which may be incurred by Lender in enforcing or attempting to enforce this Guaranty whether the same shall be enforced by suit or otherwise. Section 1.6. This Guaranty is entered into by Guarantors with Lender for the benefit of Lender and the holders from time to time of the Note, all of whom shall be entitled to enforce performance and observance of this Guaranty. Section 1.7. Guarantors are duly authorized and empowered to execute, deliver, and perform this Agreement and to borrow money from Lender. Section 1.8. The performance or observance of any promise or condition set forth in this Guaranty may be waived, amended, or modified only by a writing signed by Guarantors and IM MON Lender. No delay in the exercise of any power, right, or remedy operates as a waiver thereof, nor shall any single or partial exercise of any other power, right, or remedy. Section 1.9. This Guaranty is made and shall be governed in all respects by the laws of the state of Minnesota. Any disputes, controversies, or claims arising out of this Guaranty shall be heard in the state or federal courts of Minnesota, and all parties to this Guaranty waive any objection to the jurisdiction of these courts, whether based on convenience or otherwise. Section 1.10. If any provision or application of this Guaranty is held unlawful or unenforceable in any respect, such illegality or unenforceability shall not affect other provisions or applications that can be given effect, and this Guaranty shall be construed as if the unlawful or unenforceable provision or application had never been contained herein or prescribed hereby. Section 1.11. All notices required hereunder shall be given by depositing in the U.S. mail, postage prepaid, certified mail, return receipt requested, to the following addresses (or such other addresses as either party may notify the other): To Lender: 505 Walnut Street Suite I Monticello, MN 55362 Attn: Executive Director To Michael Maher: To Paul Cserpes: To Lisa Taylor: Section 1.12. This Guaranty constitutes the complete and exclusive statement of all mutual understandings between the parties with respect to this Guaranty, superseding all prior or contemporaneous proposals, communications, and understandings, whether oral or written, concerning the Guaranty. Nothing contained herein shall effect or impair Lender's rights under the Loan Agreement, the Note, or the Security Agreement. Section 1.13. The obligation of each Guarantor under this Guaranty shall be jointly and several with the obligations of each other Guarantor, shall be binding upon the heirs and estate of both Guarantors, and shall survive the death, divorce, or any other change in situation or relationship of any or all Guarantors. [IN a IN WITNESS WHEREOF, Guarantors have caused this Guaranty to be executed as of the date first above written. Michael Maher Paul Cserpes Lisa Taylor I Council Agenda: 9/25/06 4G. Consideration of a request to amend Chapter 11 of the Monticello Zoning Ordinancc my,ulattng, the B -I (Neiehborhood Business) District. A plicant: Citv of Monticello Plannin2 Commission (NAC) 1Z FIM -11 -INT, a I MIN Mll OW I C, The Planning Commission reviewed this item at its regular September meeting. In requesting the amendment, the Commission had directed staff to prepare an amendment that would allow for a review via Conditional Use Permit of most uses within the district. The Commission's direction was based on the fact the B -I districts are often embedded within or adjacent to residential uses. The Commission also sought a revision to the B -I district's purpose statement, in recognition of the changing nature of commercial business. The Commission did note that as with other districts, once a conditional use permit is approved for a specific use, though the property ownership may change, the conditional use permit for that type of use is still valid. The Commission also confirmed that similar uses of a lesser intensity could operate under the same conditional use permit, provided that the use continues to operate under any approved conditions. The Commission reviewed and approved the amendment, 4-0. At its July 18'h meeting, the Planning Commission heard a request by David Thielman to rezone his property located at 530 E Broadway from R-2, Single and Two Family Residential, to B-1, Neighborhood Business, The Planning Commission tabled the request for rezoning, due to a number of concerns relating to signage, lighting, parking, buffer yard, and permitted uses. Instead, the Planning Commission directed Staff to prepare an Ordinance Amendment, modifying the ordinance regarding conditional uses in the B-1 District, as opposed to permitted uses. This revision will grant the City more authority over all uses in the B- I District. The ordinance amendment also refines the purpose of the B-1 District. As the ordinance currently states, the purpose of the B-1 District is to provide local centers for convenient limited office retail or service outlets that provide services and goods p I to serve the surrounding neighborhoods. In a small community such as Monticello, it is not realistic to expect that any business will be frequented solely by residents of the surrounding neighborhood. As such, the ordinance has been amended by expanding the area served by B-1 businesses, but maintaining controls needed to mitigate impacts to adjoining residential uses. With the potential rezoning of 530 West Broadway there would be only two B-1 districts within Monticello. Attached please find an Ordinance Amendment addressing the issues listed above. [IV The need for and character of localized neighborhood districts has changed due to a primarily automobile -oriented transportation system. As such, staff believes that modifications to the current B-1 ordinance which both allow for a broader definition of the purpose of B-1 districts and provide for a more thorough review of uses allowed within the district is appropriate. Staff recommends approval of the amendment. The Planning Commission recommends alternative 1 below. 1. Motion to approve an amendment to Chapter 11 of the Monticello Zoning Ordinance regulating the B-1 (neighborhood Business) District. 2. Motion to table action on an amendment to Chapter 11 of the Monticello Zoning Ordinance regulating the B-1 (neighborhood Business) District. 3. Motion to deny an amendment to Chapter 11 of the Monticello Zoning Ordinance regulating the B-1 (neighborhood Business) District. A. Proposed Ordinance Amendment B. Current Ordinance C. Current Zoning Map I f I klokyj 114 L"; I KQL01 pigs Mil 11131 DISTRICT THE CITY COUNCIL OF THE CITY OF MONTICELLO, MINNESOTA ORDAINS: Chapter 11 of the Zoning Ordinance relating to the B-1, Neighborhood Business District, is hereby amended to read as follows: 11-1 PURPOSE: The purpose of the B -I Neighborhood Business District is to provide for the establishment of local centers for convenient limited office retail or service outlets which deal directly with the customer for whom the goods or services are furnished. These centers are to provide services and goods only f$r which primarily serve the surrounding neighborhoods and aFe not i. tend- ,d to druAer- 11-2 PERMITTED USES: The following are permitted uses in a B-1 district: •,�Barbe - shops- B vp3R Beau-typar4ers C. Essential services 11-3 PERMITTED ACCESSORY USES: The following are permitted accessory uses in a B-1 District: A. Commercial or business buildings and structures for a use accessory to the principal use but such use shall not exceed thirty 30 percent of the gross floor space of the principal use B. Off-street parking as regulated by Chapter 3 Section 5 of this ordinance but not including semi trailer trucks C. Off-street loading as regulated by Chapter 3 Section 6 of this ordinance 11-4 CONIDITIONAL, USES: The following are conditional uses in the B-1 District and require a Conditional Use Permit based upon procedures set forth in and regulated by Chapter 22 of this ordinance. A. Governmental and public utility buildings and structures necessary for the health safety and general welfare of the community provided that: 1. Conformity with the surrounding neighborhood is maintained and 67 required setbacks and side yard requirements are met. 2. Equipment is completely enclosed in a permanent structure with no outside storage. 3. Adequate screening and landscaping from neighboring residential districts is provided in accordance with Chapter 3 Section 2 of this ordinance. 4. The provisions of Chapter 22 of this ordinance are considered and satisfactorily met. B. Professional and commercial leased offices provided that: 1. The services which are provided are for the local area rather than the community or region. 2. The traffic generated will not raise traffic volumes beyond the capacity of the surrounding area. 3. The architectural appearance of the building housing the office use shall reflect the building character of the area and shall not be so dissimilar as to cause impairment of property values or constitute a blighting influence within the neighborhood. 4. The provisions of Chapter 22 of this ordinance are considered and satisfactorily met. 5. The site shall conform to sisnage reauirements as recommended by the Citv. At no time shall the si2naee exceed the reauirements as provided in Chanter 3. Section 2 of this ordinance. 6. The site shall conform to liehtin2 requirements as provided in Chapter 3. Section 2. Subdivision H of this ordinance. The liehtins shall be restricted to be consistent with the hours of operation, within one half hour of oven and close times. 7. Hours of operation shall be limited to 6:00 am to 9:00 PM. C. Convenience grocery stores provided that: 1. The site is adequately served by a collector street. 2. Access point to the site shall be limited to a collector street. 3. Curb cuts or access points shall be at least one hundred 100 feet from the intersection of two 2 streets. 4. Conformity with the surrounding neighborhood is maintained and required setbacks are met. 5. Adequate screening and landscaping from neighborhood residential districts is provided in accordance with Chapter 3 Section 2 of this ordinance. 6. Traffic generated by the proposed use does not exceed the capacity of surrounding streets and intersections to accommodate it. 7. The site shall conform to parking requirements as provided in Chapter 3 Section 5 of this ordinance. rd 8. The provisions of Chapter 22 of this ordinance are considered and satisfactorily met. 9. Building setback from residential uses must be 30 feet or greater. 10. Parking lot setback from residential uses must be 15 feet or greater. 11. The site shall conform to signage requirements as recommended bv_ the Citv. At no time shall the signage exceed the requirements as provided in Chapter 3. Section 2 of this ordinance. 12. The site shall conform to lighting reauirements as provided in Chapter 3. Section 2. Subdivision H of this ordinance. The lighting shall be restricted to be consistent with the hours of operation, within one half hour of oven and close times. 13. Hours of operation shall be limited to 6:00 am to 9:00 PM. E. Barber Shops and Beautv Parlors, brovided that: 1. Conformitv with the surrounding_ neie_hborhood is maintained and required setbacks are met. 2. Adeauate screening and landscaping from neighboring residential properties is provided in accordance with Chapter 3 Section 2 of this ordinance. 3. The architectural appearance of the building housing the office use shall reflect the building character of the area and shall not be so dissimilar as to cause impairment of propertv values or constitute a blighting influence within the neighborhood. 4. The traffic generated will not raise traffic volumes bevond the capacity of the surrounding area. 5. The site shall conform to parking_ reauirements as provided in Chanter 3 Section 5 of this ordinance. 6. The provisions of Chan_ ter 22 of this ordinance are considered and satisfactorily met. T The site shall conform to signage requirements as recommended bv_ the Citv. At no time shall the signage exceed the reauirements as provided in Chapter 3. Section 2 of this ordinance. 8. The site shall conform to lighting reauirements as provided in Chapter 3, Section 2. Subdivision H of this ordinance. The lighting shall be restricted to be consistent with the hours of operation, within one half hour of open and close times. 9. Hours of operation shall be limited to 6:00 am to 9:00 PM. THIS AMENDMENT SHALL BE IN FULL FORCE AND EFFECTIVE IMMEDIATELY FOLLOWING ITS PASSAGE AND PUBLICATION Approved by the Monticello City Council the 28t` day of August, 2006 CITY OF MONTICELLO 5 69 RIM ATTEST Rick Wolfstetter, City Administrator Mayor Clint Herbst 70 I1-1: Purpose 11-2: Permitted Uses 11-3: Permitted Accessory Uses 11-4: Conditional Uses 11-1: PURPOSE: The purpose of the B-1, neighborhood business, district is to provide for the establishment of local centers for convenient, limited office, retail, or service outlets which deal directly with the customer for whom the goods or services are furnished. These centers are to provide services and goods only for the surrounding neighborhoods and are not intended to draw customers from the entire community. 11-2-, PERMITTED USES: The following are permitted uses in a B-1 district: [A] Barber shops [B] Beauty parlors [C] Essential services (#216, 11/25/91) 11-3: PERMITTED ACCESSORY USES: The following are permitted accessory uses in a B-1 district: [A] Commercial or business buildings and structures for a use accessory to the principal use, but such use shall not exceed thirty (30) percent of the gross floor space of the principal use. [B] Off-street parking as regulated by Chapter 3, Section 5, of this ordinance but not including semi -trailer tracks. [C] Off-street loading as regulated by Chapter 3, Section 6, of this ordinance. 11-4: CONDITIONAL USES: The following are conditional uses in a B-1 district: (Requires a conditional use permit based upon procedures set forth in and regulated by Chapter 22 of this ordinance.) [A] Governmental and public utility buildings and structures necessary for the health, safety, and general welfare of the community provided that: 14 Conformity with the surrounding neighborhood is maintained and required setbacks and side yard requirements are met. MONTICELLO ZONING ORDINANCE 7 � 2, Equipment is completely enclosed in a permanent structure with no outside storage, 3. Adequate screening and landscaping from neighboring residential districts is provided in accordance with Chapter 3, Section 2, of this ordinance. 4. The provisions of Chapter 22 of this ordinance are considered and satisfactorily met. [B] Professional and commercial (leased) offices provided that: The services which are provided are for the local area rather than the community or region, 2. The traffic generated will not raise traffic volumes beyond the capacity of the surrounding area. 3. The architectural appearance of the building housing the office use shall reflect the building character of the area and shall not be so dissimilar as to cause impairment of property values or constitute a blighting influence within the neighborhood. 4. The provisions of Chapter 22 of this ordinance are considered and satisfactorily met. [C] Commercial planned unit development as regulated by Chapter 20 of this ordinance. [D] Convenience grocery stores provided that: The site is adequately served by a collector street. 2. Access point to the site shall be limited to a collector street. 3. Curb cuts or access points shall be at least one hundred (100) feet from the intersection of two (2) streets. 4. Conformity with the surrounding neighborhood is maintained and required setbacks are met. 5. Adequate screening and landscaping from neighborhood residential districts is provided in accordance with Chapter 3, Section 2, of this ordinance. 6. Traffic generated by the proposed use does not exceed the capacity of surrounding streets and intersections to accommodate it. T The site shall conform to parking requirements as provided in Chapter 3, Section 5, of this ordinance. MONTICELLO ZONING ORDINANCE 11/2 8. The provisions of Chapter 22 of this ordinance are considered and satisfactorily met. 9, Building setback from residential uses must be 30 feet or greater, 10. Parking lot setback from residential uses must be 15 feet or greater. 11. The combined total or individual gross floor area of convenience store and/or laundromat establishments shall not exceed 3,000 sq ft in any single B-1 district. 12. Hours of operation shall be limited to 5:00 a.m. to 11:00 p.m. 13. The number of gas dispensers allowed is limited to one gas dispenser per 400 sq ft of retail floor area, with total dispensers not to exceed four. [E] Laundromat, self-service washing and drying provided that: 1. The site is adequately served by a collector street. 2. Access point to the site shall be limited to a collector street. 3. Curb cuts or access points shall be at least one hundred (100) feet from the intersection of two (2) streets. 4. Conformity with the surrounding neighborhood is maintained and required setbacks are met. 5. Adequate screening and landscaping from neighborhood residential districts is provided in accordance with Chapter 3, Section 2, of this ordinance. 6. Traffic generated by the proposed use does not exceed the capacity of surrounding streets and intersections to accommodate it. 7. The site shall conform to parking requirements as provided in Chapter 3, Section 5, of this ordinance. 8. The provisions of Chapter 22 of this ordinance are considered and satisfactorily met. 9. Building setback from residential uses must be 30 feet or greater. 10. Parking lot setback from residential uses must be 15 feet or greater, 11. The combined total or individual gross floor area of convenience store and/or laundromat establishments shall not exceed 3,000 sq ft in any single B-1 district. MONTICELLO ZONING ORDINANCE . 1.1/3 12. Hours of operation shall be limited to 5:00 a.m. to 11:00 p.m. (#216,11/25/91) MONTICELLO ZONING ORDINANCE 11/4 7 Council Agenda: 9/25/06 CH. Consideration of a reouest for rezoning from R-2 (Sinele and Two Family Residential! AtoB-1 fNeighborhood Business) for 530 West Broadway. Applicant: David Thielman. (NAC) The Planning Commission considered this rezoning request after reviewing the proposed amendment to the B-1 District. The Commission approved the rezoning request 4-0, amended district regulations. Neighbors expressed concerns from regarding potential parking and signage issues during the public hearing. As a result, the Commission recommended an amendment to the B-1 district, which would apply to this property and give the City greater control over those issues. The Commission also noted to the applicant that the majority of uses for his building would require a Conditional Use Permit under the amended district regulations. The current office business at 530 W. Broadway is allowed to continue as an existing non -conforming use. The applicant, David Thielman, has submitted an application for rezoning from R-2, Single and Two -Family Residential, to B-1, Neighborhood Business for his property located at 530 E Broadway. The site is .44 acres in size and contains a single family home that has been converted into a funeral home. Rezoning-. According to Section 2-21 (D), the Planning Commission should consider possible adverse effects of the proposed land use. Judgment should be based on the following factors: 1. Relationship to municipal comprehensive plan. 2. The geographical area involved. 3. Whether such use will tend to or actually depreciate the area in which it is proposed. 4. The character of the surrounding area. 5. The demonstrated need for such use. The site is surrounded by single family residential uses on all sides. The site currently contains a single family home that has been converted into office space. The current use is a legally non -conforming use in the R-2 District. The applicant has indicated that he is looking to relocate his operation and is seeking the rezoning in order to market his property for limited commercial use. The purpose of the B-1, Neighborhood Business district is to provide for the establishment of local centers for convenient limited office retail or service outlets which deal directly with the customer for whom the goods or services are furnished. These centers are to provide services and goods primarily for the surrounding neighborhoods and are not intended to draw customers from the entire community. Parking. The site contains a 6,120 square foot building and approximately 24 off-street parking stalls. The applicant submitted a sketch plan of available parking on site. After evaluating the plan, staff would recommend as part of any future CUP that the parking stalls behind the garage, the 74A Council Agenda: 9/25/06 stall in the far northeast comer of the site, and two stalls along the east property line be removed. As such, the site will have 25 angled off-street parking stalls available, satisfying the minimum requirement. Another four parking stalls are available in front of the building, on Broadway. Staff would also recommend that that parking lot be improved to include striping, delineating available stalls and indicating a one-way drive around the building. Staff also recommends that a second garage door be added to the west side of the garage so that cars may drive through, promoting better parking lot circulation. Demonstration of adequate parking would also be reviewed as part of any application for a Conditional Use Permit, as well as signage, lighting, and hours of operation. The applicant is requesting that his property located 530 West Broadway be rezoned from its current R-2 designation to B-1, Neighborhood Business. The request to rezone stems from the fact that the applicant is looking to market the building, which has been used for commercial purposes. A CUP is required to allow commercial uses within the B -I District. Any future tenant, would be required to obtain a CUP prior to operation. Upon application for a CUP, the future tenant must address issues relating to signage, parking, lighting, and buffer yard. 1. Motion to recommend approval of the Rezoning, based on a finding that the proposed use is consistent with the character of the surrounding area and intent of the Comprehensive Plan, subject to the conditions that any future tenant must obtain a Conditional Use Permit prior to operation, in compliance with the amended ordinance. 2. Motion to deny the request for Rezoning, based on a finding that the proposed use is not consistent with the intent of the Comprehensive Plan. FIVJTINZ� mel The subject site is currently zoned R-2, Single and Two Family Residential. The existing building is suited for commercial use, but is still architecturally compatible with the surrounding single family homes, and no modifications are proposed for the structure. Staff recommends approval of the Rezoning from R-2 to B- I based on alternative I above. D. SUPPORTING DATA A. Site Location Map B. Site Description C. Site Improvements 2 74B Council Agenda: 9/25/06 D. Site Images E. R-2 District Regulations 74C MONTICELLO m im 0 15 Vt G V - a ik t 4m 74D The • site is located • Broadway Street • the west end • the original downtown in the City of Monticello. The general character in the subject immediate neighborhood is a mix of residential and commercial uses. Site compatibility, conditional use utility, and visibility are accepta le. Access to the site is acceptable. The site has a rectangular shape. The topography is generally level and •• street grade. •'' appears adequate. The site contains plus/minus 19,057 square feet or .44 acres of a land. Site utilities include; city sewer and water, natural gas, electric, and telephone services. There are no adverse easements, encroachments, or other adverse conditions observed on the subject site or in near proximity to the subject site. Normal utility and drainage easements are acceptable. On site improvements include landscape and minimum on site parking. As a funeral home the predominance of the parking was on street. Site Size: 33 feet times 165 feet times three lots = 16,335 feet 16.5 feet times 165 feet = 2,322 feet The total site size is calculated: Plus/Minus 19,057 Square Feet OEM 74E IRWIN*= Building 50 x 56 = 2,800 SF 16 x 56 = ---896 SF Total GBA main floor 3fi96 SF 34 x 56 =1,904 SF 16 x 28 = 448 SF 4 x 18 =----72 SF Total GBA second floor 2,424 SF The total gross building area (GBA) of the subject property is 6,120 square feet above ground. Page 7 74F Per the owner the original home was built around 1906. The home was converted to a funeral home around 1940. The front I story office and reception area was added on in 1974. Extensive updating was completed around 1989-1991. The original • has a stone and mortar foundation. The frame is wood construction. The exterior is wood .• siding. The hip style roof is asphalt •'• The windows are H -Windows. The main floor is designed with a chapel, family rooms, office, and reception area; upstairs is an apartment with kitchen, dining room, bath, and bedroom. There is also a showroom on the second floor. There is a deck off the upstairs apartment. The basement has 24% finish with a family room and two half baths. The rest of the basement is storage and utilities. The 3d floor is attic storage space. There is a counter balanced hand operated elevator servicing the second and main floor. There is a brick cistern in the basement. Utilities have been updated with gas forced warm air heat, central air, and 200, 100 amp electric service. There is back up electric heat. The property is connected to city sewer and water service. The general condition of the improvements are rated average. Some of the floors are outdated. The functional utility of the building has some flexibility. Other potential uses could be converting to a 2 family residential unit or a mix of conditional commercial uses. The driveway horse -shoes around the building. A 4 car attached garage is heated with oil space heat. There is a car port canopy on the east side of the building. The site improvements include asphalt and concrete driveway also the parking area. Sidewalk and landscaping are compatible to the neighborhood. DEPRECIATION The appraiser estimate 25% normal physical depreciation, 10% functional depreciation for elevator and on site parking. 10% external depreciation is estimated for zoning Page 8 74G Pan 9 74H Council Agenda: 9/25/06 0. Consideration to correct formal record bv rescindinL, a motion to approve a Conditional Use Permit for drive-throu2h facilitv for Broadwav Market with conditions to redesiLyu a drive-throu2h and approvin2 a motion to approve a Conditional Use Permit for a drive-throuLyh facilitv with no conditions. (AS/JO) At its August 281h meeting, the City Council motioned to approve a conditional use permit for a drive-through facility for the proposed Broadway Market, a commercial project located at County Road 39 and Hart Boulevard. Staff had recommended that the applicant reconfigure the drive-through to provide better access to the drive-through and parking areas within the site. Council's discussion, recorded within the minutes, seems to indicate that members of the Council preferred to allow the applicant to move forward with the site plan as proposed, with no redesign. The site plan included with the August 28th report is attached. The approved minutes for the meeting show that the Council approving the CUP via motion number 1. However, alternative I was not consistent with Council's discussion on the drive-through circulation. Alternative I includes conditions requiring that the applicant redesign the drive-through. The approved minutes have been included as supporting data. Due to the discrepancy between the discussion and motion, staff and applicant are seeking clarification on the motion to approve. Staff and the applicant have agreed to minor modifications on the pavement plan that would satisfy staff's concerns regarding access and circulation, while allowing the alignment of the drive-through to remain unchanged. CAMMIS =MMOIN 1) Motion to rescind the August 28th, 2006 approval of the Conditional Use Permit for a drive through facility for Broadway Market, which was subject to the following conditions: a) The parking lot shall be modified to include an access lane to the west side of the parking lot and the drive through entrance. Said drive lane shall be delineated with curbed islands and contain directional signage. b) The entire north side of the drive lane for the drive through shall be curbed to create stacking space for six vehicles. c) The island south of the pre -menu board shall be removed to allow room for a passing lane around the drive through. Council should select this alternative if it is believed that the applicant's proposed site plan, with modifications as noted, is sufficient to serve the site. • a companion motion, Council should select alternative 1 under Decision 2 below. 75 Council Agenda: 9/25/06 2) No action. If Council believes the original motion was correct, requiring the applicant to redesign the drive-through, no motion is required. The record will stand that the applicant has approval for a CUP subject to the conditions noted above. Decision 2: Conditional Use Permit for Drive -Through Facility 1) Motion to approve the Conditional Use Pen -nit for a drive through facility for Broadway Market, based on a finding that the proposed use is consistent with the intent of the PZM District. 2) Motion of other. Staff recommends alternative 1 under both decisions. With the minor changes to the paved area and the paint directionals on the pavement, staff would support the drive-through configurations as shown as the site plan. A. Approved Minutes of 8/28/06 B. Approved Site Plan E Brian Stumpf added item #10, Approving Plans and Specifications and Advertising for bids for the extension of Dalton Avenue, Dalton Court and Dalton Way to the consent agenda. John Simola asked that item #5G, Award of contract on the ornamental fencing for Riverside Cemetery be removed from the agenda as the contractor had submitted the required bond. Glen Posusta felt agenda items #9, Award of bid for Monticello Business Center improvements and #13, Development of an ordinance regulating multi -family dwellings could be added to the agenda. Tom Perrault requested that Item #13 not be on the consent agenda since there may be people attending the meeting to discuss the need for regulating rental units. Wayne Mayer asked that items #5D,Conditional Use Permit for Steiner Development and #5H, off -premise real estate signs be removed from the consent agenda for discussion. GLEN POSUSTA MOVED TO APPROVE THE CONSENT AGENDA WITH THE ADDITION OF ITEMS #9 AND #10, WITH THE REMOVAL OF #5G AND WITH ITEMS #51) AND #5H REMOVED FOR DISCUSSION. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. Tom Perrault questioned why the actual application for the charitable gambling license was not included with the agenda item. 6. Consideration of items removed from the consent agenda for discussion #5.D Conditional Use Permit — BroadwayMarket: Wayne Mayer asked Consulting Planner, Steve Grittman to explain #6 listed under the requirements for a conditional use permit relating to vehicular access points. Wayne Mayer questioned the drive through area and the location of the stacking space. He was concerned that cars in the stacking area could block the flow of traffic through the parking lot. The sketch submitted showed a "Do Not Stand" sign which is directed at vehicles so as to not block traffic flow. Wayne Mayer questioned what appeared to be two stacking areas separated by an open space. Steve Grittman said the design was not unreasonable. Glen Posusta asked why the window was not placed at the corner of the building then the whole area could be stacking area. Wayne Mayer questioned why they would want a set up that could impede someone from getting out of the parking lot. Clint Herbst stated the parking is all self contained and not affecting neighboring property so the property owner is the only one that has to deal with it. Since it does not affect any other site, he did not think the City should direct the developer to do anything else. Glen Posusta felt it should be designed for what takes place on the site 99% of the time. Glen Posusta felt the solution would be to move the window to the opposite corner of the building. Todd Johnson from Steiner Development addressed the Council stating they are working with staff on the plan. He stated they are willing to, and have made changes to the site plan to effect a well placed drive through. They are proposing broken stacking allowing for four cars from the window and additional space for two more cars. In addition there is ground signage directing them to queue. Staff had suggested closing the first opening but that was not the preferred option of Steiner Development. They are willing to work with staff to come up with something else or act on specific direction from the Council. Todd Johnson thought leaving the parking lanes open would be less circuitous and would not be sending the people away from the front of the building. Clint Herbst felt the parking lot layout was a movement thing and having it open 77 would allow vehicle movement through the parking lot. Todd Johnson noted that the proposed use is a coffee house which has specific requirements on spaces needed for the drive through. Wayne Mayer stated that according to Section 3-9J one curb cut is allowed for every 125 feet but there is nothing in the ordinance that says how far apart the curb cuts should be. Wayne Mayer asked if on the east end of the building, after the customer has picked up his order is there any warning as far as pedestrian traffic along the back. Todd Johnson discussed signage options such as "Service Vehicles Only." Tom Perrault questioned the speed limit of 35 mph identified in the agenda item for CR 39 and CSAR 75 stating those were not the posted speed limits. Clint Herbst asked if the City would see a change in the posted speed limits on these streets once the interchange was open. Bruce Westhy indicated when CSAR 75 was turned back to the City the speed limit could be looked at then. There was some discussion on when the turn back of the road would take place. Tom Perrault asked if the speed limit changes anything as far as the pylon sign. Steve Grittman said the applicant would still be in compliance with the sign ordinance. Tom Perrault asked the capacity of the storm water system. Todd Johnson stated they have complied to what engineering standards are which is a 10 year storm event design. Ifthere was aI00year storm event there would be emergency overflows provided. Wayne Mayer asked about the parking stalls noting there were 23 stalls marked for liquor store use. Steve Grittman said the parking requirements were set to provide for the maximum of the usage allowed. Todd Johnson requested direction from the Council as to variation in design and whether the parking lanes can remain open or whether they will be required to close it off. Brian Stumpf felt that the owner knows what would work best on their site and he didn't feel comfortable telling them to do something else with the design unless it was a safety issue. BRIAN STUMPF MOVED TO APPROVE THE CONDITONAL USE PERMIT FOR A COMMERCIAL STRIP CENTER AND JOINT ACCESS BASED ON A FINDING THAT THE PROPOSED ARRANGEMENT IS CONSISTENT WITH THE INTENT OF THE PZM DISTRICT. GLEN POSUSTA SECONDED THE MOTION. MOTION CARRIED WITH WAYNE MAYER VOTING IN OPPOSITION. BRIAN STUMPF MOVED TO APPROVE THE CONDITIONAL USE PERMIT FOR A DRIVE THROUGH FACILITY BASED ON A FINDNG THAT THE PROPOSED USE IS CONSISTENT WITH THE INTENT OF THE PZM DISTRICT, SUBJECT TO THE CONDITIONS AS FOLLOWS: 1) PARKING LOT SHALL BE MODIFIED TO INCLUDE AN ACCESS LANE TO THE WEST SIDE OF THE PARKING LOT AND THE DRIVE THROUGH ENTRANCE. SAID DRIVE LANE SHALL BE DELINEATED WITH CURBED ISLANDS AND CONTAIN DIRECTIONAL SIGNAGE; 2) THE ENTIRE NORTH SIDE OF THE DRIVE LANE FOR THE DRIVE THROUGH SHALL BE CURBED TO CREATE STACKING SPACE FOR SIX VEHICLES; 3) THE ISLAND SOUTH OF THE PRE -MENU BOARD SHALL BE REMOVED TO ALLOW ROOM FOR A PASSING LANE AROUND THE DRIVE THROUGH AND THE APPLICANT SHALL COMPLY WITH ANY RECOMMENDATIONS OF THE CITY ENGINEER.. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED WITH WAYNE MAYER VOTING IN OPPOSITION. BRIAN STUMPF MOVED TO APPROVE THE CONDITIONAL USE PERMIT FOR A JOINT PARKING ARRANGEMENT BASED ON A FINDING THAT THE PROPOSED ARRANGEMENT WOULD MEET THE REQUIREMENTS FOR OFF-STREET PARKING ffoll • . . • r V •,r r • r i . .. ► •, ► •, • • .. . • , , r , • , •, #5H Off -Premise Real estate Signs: Jeff O'Neill provided background on this item noting that the present ordinance restricts signs from being placed in the boulevard. Staff was proposing a procedure to use for enforcing the ordinance as it relates to off -premise real estate signs. Jeff O'Neill stated with literal enforcement of the ordinance it creates hardship for the real estate companies that are promoting developments within the City. Staff was seeking direction from the Council on the level of enforcement that they wanted to apply. Clint Herbst felt the City should contact the real estate company and review with them what the regulations are and the changes being proposed. He felt by meeting with the real estate companies the City could come up with a solution. Glen Posusta felt the sign issue should be handled in a manner similar to what St. Michael did where they allowed the signs to be posted from Thursday through Sunday. Torn Perrault stated that one real estate company may have more than one office and each office could have a sign in the boulevard. Jeff O'Neill said it would take awhile to do research and get the ordinance adopted. What did the City want to do in the interim? Brian Stumpf felt the City should be following the ordinance. If something comes from the meeting then the City could look at interim application. Clint Herbst felt the ordinance should be done over a short period of time and not dragged out. Jeff O'Neill said the Planning Commission could not act on the ordinance until October at the earliest. He felt the City should go with an interim procedure until the ordinance is in place. MIZICIA i • l AN V11,11111 • • • .•• 10• In further discussion Tom Perrault asked if the notice would be given only to local realtors. Glen Posusta said there would be published notice given. Tom Scott cautioned that sign matters are complicated and the City must be careful about regulating signs based on the content of the sign. Clint Herbst agreed but stated his intent was that since real estate companies have the majority of off -premise signs the City could meet with them and come up with a recommendation that the City could apply to all off -premise signs. Brian Stumpf stated that once any ordinance is adopted then it is a matter of enforcement. Public7. anDeal of a denial of variance to setback requirements for a drive- throu2h LLC/ Alan Loch. Steve Grittman provided background stating that agenda items #7 and #8 are related to the same site which is Chelsea Commons. The location of the proposed drive through would require a variance. The Planning Commission recommended against the conditional use permit and the denied the variance request. The applicant has appealed the denial of the variance. Approval of the conditional use permit relies on the approval of the variance. EEO A 10 1A G / . R=95' TYR Al P4REMOVE & REPLACE EXIS r SIGN AS NECESSARY A/ 00� "p, REMOVE EXIST CONCRETE SIDEWALK ACROSS ENTRANCE P, A INSTALL'. RAW, Rflyoff EXIST. CURB & GUTTER 0ACROSS ENTRANCE DRIVE& /STALL COMMERCIAL RCIA , EDRIVEWAY ENTRANCE C91, ink % 101, 9\1 b BLO 40 o q 417 to AO Pr Iv Ap (b 2, 19� 0 '� ? I � r r �+ 0 �S 41+. 1. ALL DIMENSIONS ARE FROM BACK OF CURB. ♦ oy'Y �'. 5, 2. DIMENSIONS MEASURED OFF THE PROPERTY LINES ARE R=20' PERPENDICULAR TO THEM. 3. ALL PEDESTRIAN FACILITIES SMALL BE IN ACCORDANCE r 'r WTH CHAPTER 1341 OF THE MN STATE BUILDING y CODE AND ADA STANDARDS. At 4. REFER TO ARCHITECTURAL PLANS PREPARED BY WEBER AR PLANNERS FOR BUILDING INFORMATION "x 817NCSIORNIS'. 4° REFER TO AQA PREP LAND TITLE SURVEY joa NUMBER 1-06-0208 PR PARED BY OTTO ASSOCIATES ENGINEERS RELOCATE AND LAND SURVEYORS, INC FOR BOUNDARY ADDITIONAL LIGHT POLE INFORMATION. El liall, 1:11''I'lim, pMd. T THS&W S1111 I I Emmummm- CID. KL.K T#w I AM A4"2LIOSCOO &'III" ago= R THE Ums cr "q sun cr mamwm m"ft BROADWAY MARKET C.S.Q. AL MID ftrl TTO STEINER CONSTRUCTION SERVICES SITE PLAN no== n)m4w 1 J%Imgiiwlh= L MONTICELLO, MN 1-06-0221 6/13/06 80 Council Agenda: 9/25/06 6J. Authorize a Feasibilitv Revort for the Reconstruction of Chelsea Road from CSAH 18 to Fallon Avenue (Citv of Monticello Proiect No. 2006-31C) (WSB) r 51 As part of the overall interchange reconstruction project, the reconstruction of Chelsea Road to an urban section was delayed until 2007. This was the plan since Chelsea Road would be used as part of the detour during some of the CSAH 18 construction. The overall agreement with the Monticello Industrial Park included a provision to commence reconstruction of Chelsea Road from CSAH 18 to Fallon Avenue no later than the start of the 2007 construction season. As development continues in this area of the City, there is a need to upgrade the street and utility systems along the roadway. The assessment to the Monticello Industrial Park was included in the overall agreement, but the other property owners are proposed to be assessed for this project. The proposed infrastructure improvements would include reconstructing approximately 3,300 feet of Chelsea Road from where it was improved this year, approximately 800 feet west of CSAH 18, to Fallon Avenue. The roadway will be reconstructed to an urban section with curb and gutter and storm sewer improvements. It is anticipated that minimal adjustments to the existing watermain and sanitary sewer systems would need to be made. An 8 -foot bituminous trail is proposed along the north side of Chelsea Road. Street lighting costs will also be included in the feasibility report. The feasibility report will outline the project improvements, estimated costs, proposed funding sources, and schedule. A topographic survey and soil borings are also needed to complete a preliminary design of the project. 1 Authorize the feasibility report, topographic survey, and soil borings for the reconstruction of Chelsea Road from CSAH 18 to Fallon Avenue. 2. Do not authorize the above work. The City Administrator recommends that the Council authorize Alternative No. 1. As noted above, the agreement with the Monticello Industrial Park, Inc. stipulates that construction of these improvements commence no later than the start of the 2007 construction season. In order to move forward with the project in a timely manner, we would ask that the Council consider authorizing proceeding with this project at this time. F idauug'—rdprocl2006 Council Agendas!9-25-06ccagendal5J(helseandRecot,Orde,-Fe.&Rpt-092506do, 81 Council Agenda: 9/25/06 Considerationof resolution declarin2 costsr be assessed, orderin2 preparation of rolls,assessment ir; settin2 r.te fr public r adopt assessments forPublic Improvement 2006-01C, 1(,r Street Reconstructionr2of Monticello Project No.I!r WSB & Associates, Inc. has completed the proposed assessment roll for the 2006 Street Reconstruction Program, City Project No. 2006-01 C. Wright County requires that the assessments be certified to the County Auditor by November 30, 2005 for collection on next year's taxes. This deadline can be met by calling for the assessment hearing to be held at the October 23, 2006 Council meeting. By conducting the assessment hearing on October 23rd, adequate time for publication and mailing of notices will be provided to satisfy requirements for public improvement projects in accordance with Minnesota State Statutes Chapter 429. A copy of the proposed assessment roll is attached for the Council's review of the project costs and proposed assessments. The project is currently under construction and on schedule for completion in accordance with the contract. The adopted assessment policy for residential properties in this project area is a fixed assessment proposed as a percentage based on historical assessments for these types of projects. As the project is not complete, final costs have been estimated based on the value of work remaining on the contract and time remaining to final out the project. Assessments for the 2005 project were calculated based on assessing a minimum of twenty percent (20%) of the total project cost. This project is to be funded through a combination of trunk utility funds, general funds, assessments, and street reconstruction funds budgeted on an annual basis. The City has not bonded for any of the improvements included in the 2006 Street Reconstruction project nor is it anticipated that bonding will be required. As a result, assessments to be levied at the rate of 20% as previously discussed is not required. Typical assessments for the 2005 project were $2,986 per residential lot. Assessments presented at the January 9th public hearing for the 2006 project included residential assessment rates of $3,000 per lot. Due to construction cost increases in 2006, this rate has been increased by five percent (5%) to a value of $3,150 per lot, which is reflected in the attached assessment roll. A significant change in the assessment roll is the assessment rate for the sidewalk construction. These assessments were estimated at $200 per lot based on assessing twenty-five (25%) of the sidewalk total cost. Based on contract prices, this assessment rate has increased to $496.81 per lot. The typical assessment per residential lot based on these two numbers calculates to $3,646.81 per lot. The Council is being requested to set the assessment hearing date for the adoption of the assessment roll at the regular Council meeting of October 23rd. Two weeks published notice is affected along with mailing individual proposed assessments to each property owner affected by this project. In order to meet this schedule, the Council will need to set the hearing date on Monday night. C.Docuwnts andSetnngs'✓laxn.grnssingerL,nwl SettingsiTempormylntemet File,sIOLK3NGNrTbf-2006StreetReco?L4sessflig-092506.doc 93 I Council Agenda: 9/25/06 The City has received complaints from residents regarding utility work on River Street and access to driveways and River Street during construction. The work involved constructing main line storm sewer at depths of approximately 12-13 feet towards the center of the roadway. At one point, the storm sewer was under construction on the west end of River Street while a second crew was installing the large vortechnic units on the east end, which limited access for that day. Wright County Dispatch has been notified of all major road closures for emergency vehicle purposes. Utility work has taken longer than anticipated due to the depths of installation and existing sewer and water service conflicts. However, all utility work for the project will be essentially complete by September 22. Class 5 aggregate base is scheduled to be placed on River Street the week of September 25. Retaining wall work will also start the week of September 25. Sodding along Otter Creek Road and Sandy Lane will be complete within the next 2-3 weeks. The project is on schedule to be substantially complete by November 1, 2006. I Adopt the resolution for the improvement project declaring the costs to be assessed and setting the assessment hearing for October 23, 2006. 2. Do not set the assessment hearing date at this time. The City Administrator recommends that the Council authorize Alternative No. 1. Preliminary Assessment Roll C'd)--u and SettingslTemporaq hiteniet FitesiOCK3'✓ICNITM-2006StreetRecordssessHrg-092506 doe M 3 Client: City of Monticello Proposed Assessment Role 9/21/2006 Project Name: 2006 Street Reconstruction Program City Project Number: 2006-01 C WSB Project Number: 1494-16 AREA i I I I I I STREET I ASSESSMENT ASSESSMENT I SIDEWALK AMOUNT ASSESSMENT LOT $21,840.00 $9:1200 I IREMARKS RESIDENTIAL ASSESSMENT (Per ASSESSMENT FRONT COMMERCIAL LOT ASSESSMENT (Per NO. PID OWNER NAME PROPERTY ADDRESS ACRES LOTS Property) AMOUNT FOOTAGE FRONT FOOTAGE Front Foot) 69 155087001030 MARY E RITZE 11405 RIVER ST W 4.203 $0.001 1 $3,150.00 $0.00 273 $80.001 117 155500034200 RED ROOSTER PROPERTIES INC 1323 RIVER ST W 1 4.085 mool 1 $3,150.00 $0.00 114 $80.00 119 155023001010 WILLIAM E & ARLENE F WHITE 1328 RIVER ST W i 0.896 $0.001 1 $3,150.00 $3,150.00 205.2 $80.00 120 155023001020 JONATHAN Q & HEIDI R GASLIN 11324 RIVER ST W 1.022 1 1 $3,150.00 $3,150.00 32.0 $80.001 121 155023001021 DANN G FORSBERG 11322 RIVER ST W 0.358 1 1 $3,150.00 $3,150.00 95.0 $80.001 122 155023001030 SCOTT W & ELIZABETH A HILL :1320 RIVER ST W 1.129 1 $3,150.00 $3,150.00 110.0 $80.001 123 155023001040 DOUGLAS E & JOLENE M TEMPLE :1316 RIVER ST W 1A11 I 1 $3,150.00 i i $315000 ,.. 110 0 $80.00!� 124 155023001050 JEFFREY V & STACI N BARTH 1312 RIVER ST W 1.086 1 $3,150.00 i $3,150.00 110.01 $80.001 125 155023001060 DANIEL L & DARLENE WETTERSTROM 1308 RIVER ST W 1.018 1 $3,150.00 $3,150.00 110.0 $80.001 126 155023001070 DONNA L MAURICE 1304 RIVER ST W 0.952__ 1 $3,150.00 $3,150.00 110.01 $80.001, 128 155025001010 MARK A & CINDEE C HAIDER 1230 RIVER ST W 0.765 1 $3,150.00 $3,150.00 0.01 $80.00! 129 155025001020 RODNEY E & ANN M DRAGSTEN 1226 RIVER ST W 0.752 $3,150.00 $3,150.00 80.0 $80.00:1 130 1 155025001030 GREGORY J & TERESA B RODEN 1222 RIVER ST W 1390 1 $3,150.00----$3,-15-0-.00-- -------- $80.001 131 I 155025001040 ROGER W & SUSAN K HEDTKE 11218 RIVER ST W 0.678 1 $3,150.00 $3,150.00 90.01 $80.001 132 155025001050 CHESTER E & L R PIOTROWSKI 1214 RIVER ST W 0.629 1 $3,150.00 $3,150.00 90.01 $80.00: : 133 155500034202 WAYNE & NELLIE WEBER 11210 RIVER ST W 1.057 1 $3,150.00 $3,150.00 191.01 $80.00 136 155012001090 PATRICIA M OLSEN 1113 OTTERCREEK RD 0,475 $3,150�00 120.61 $80.00 137 155023001080 STEVEN & CANDACE JOHNSON 1233 SANDY LN 0.923 $3,150�00 $3,150.00 250.91 $80.00 139 155012001025 DALE C & ROSEMARY T DAHL :1229 SANDY LN 0.400 1 0--0- ------ $3015 0--.----_---=$$3,150_00 -sa,-i5a-06 $80.00 140 155012001030 KURT & BRENDA DIEKMAN -1 -- 225 SAN - DY LN 0.479 $3,150.00 $3,150.00 139.91 $80.00' 141 1 142 155012001040 155012001050 RICHARD F & JOYCE L ZLER RICHARD J &PATRICIA FATIGUE 11221 SANDY LN F21 7 SANDY LN 0.469 0.467 1 -1 1 i $3, - 56.00 $3,150.00 i $3,150�00 1 $3,150.00 129.51 12 0.01 $80.00 $80.001 143 1-144 -�----15501260-1070 1550120,01060 MARILYN J STICKFORT REV TRUST -SXN 1M NDY LN C616-6- $3,1 50.00 $3, 105�O $80.00' GLENN W PETERSON-&- --- 11209 SANDY LN 0.487 $3,150.00 $3,150.00 120.6�- $80.00! 145 155012001080 GORDON V & LINDA YAGER 1205 SANDY LN 0.454 $3,150.00 $3,150.00 1 80'0 $80.001 146 155012002010 ':PAUL J & JANET L FUSS 11228 SANDY LN 0.606 21 $3,150.00 $6,300.00 01-61 $80.00 1 147 155012002020 � EARL & MARGARET SWAN !1224 SANDY --b-.-54� ---�MWOO $3,150,00 144.2 $80.00! 148 155012002030 (DOUGLAS C & JANICE K HAUPT0.523 SANDY LN 1 $3150-00 , $3150�00 , 11001 - 1 $80�00 149 155012002040 1 DARREN M CARSTENS 1216 SANDY LN 0.535 __ _ i -- - $3,150.00 - - -t3 , - 1 - 00.01 $80.00: 150 155012002050 _1220 IGALE 0 & HOLLY A HERMAN 1212 SANDY LN 0.591 1 $3,15_0.00 100.0[ $80.001 151 155012002060 1 DAVID A & LOIS C CAPEK 11208 SANDY LN 0.479 -$3,150.66 ---160.0 $80.001 152 155012002070 EDWARD W SOLBERG 1204 SANDY LN 0.494 i1 $3,150.00 $3,150.00 1 294.21 $80.001 153 155012002080 RUSSELL G &CAROL A LOVEGREN 1205 BROADWAY W 0.690 1 1 $3,150.00 $3,150.00 1 16741 $80.00! 154 155028001010 PAUL W & CAREY L LUNDBERG 1 RIVERSIDE CIR 0.371 1_ $3,150.00 $3,150.00 $80.001 155 155028001020 'JOAN D BONDHUS 3 RIVERSIDE CIR -6.637 $3,1M.60 $3,150.00 60.01 $80.00 156 155028001030 i DENNIS F & MYRNA R ANDERSON 5 RIVERSIDE CIR 0.399 1 1 $3,150.06 $3,150.00 71.5 157 155028001040 I;JEAN N RAFFERTY 7 Rivtksibii CIR 0.565 1 $3,150.00 $3,150.00 15.0 ------$80.00 $80.00 158 155028001050 !CHAD R & STACY L LATVAAHO 9 RIVERSIDE 1,504 1 --$3,150.00 $3,150.06 15.01 $80.00 159 155028001061 :CHAD R & STACY L LATVAAHO 0A63 1 1 $3,150.00 $3,150.00 1 $80.00 160 161 155028001060 155028001070 :iGAETAN M & RACHAEL B GILARD 1 SUSAN M MARCHETTI 4 RIVERSIDE CIR 2 RIVERSIDE 0.283 0.318 1 $3150.00 $3 -�50�00 $3,150-00 $3,150.00 60.01 366.0 $80.001 $80.001 195 155020004010 (THOMAS W & REBECCA if-HourkAus 1129 BROADWAY W 1.314 $3,150.00 $0.00 139 $80.001 ASSESSMENT I SIDEWALK AMOUNT ASSESSMENT LOT $21,840.00 $9:1200 $0.001 1 $0.001 1 $0.00) 1 $0.001 1 wool 1 $0.001 1 $0.001 mool $0.001 $0.001 1 $0.001 1 $uol 1 MOO 1 $0,001 1 $0.001 1 wool I $0.001 1 $0.00 1 $0.001 1 $0.001 1 $0.001 1 $0.001 1 $0.001 1 $0.001 1 mool 1 mool 1 $6 -OOT 1 $0.001 1 $0.00 1 $0.001 1 $0.001 1 $0.001 1 $0.001 1 $0.00 1 $0.001 1 $0.001 1 $0.001 1 $0.001 1 $0-001----------1 $11,120.001 SIDEWALK I TOTAL ASSESSMENT (Per l ASSESSMENT Property) I AMOUNT $0.00 $0.00 $496.811 $496.811 $496.811 $496.811 $496.811 $496.811 $496.811 $496.811 $496.811 $496.811 $496.811 $496.811 $496.811 $496.811 $496.811 $496.81( $496.811 $496.811 $496.811 $496.811 $496.811 $496.811 $496.811_ $496.811 $496.811 $496.811 $496.811 $496.811 $496.811 $496,811 $496.811 $496.811 $496.811 $496.811_ $496.811 $496.811 $496,811- $496.811 $496.811 $21,840.001 $9,120.00 $3,646.81 $3,646.81 $3,646.81 $3,646.81 $3,646.81 $3,646.81 $3,646.81 $3: $3 4:�:11 6 $3,646.81 $3,646.81 $3,646.81 $3646'81 $3:64681 $3,646.811 $3,646.811 $3,646.81!1 $3646.81 $3:646.811:1 $3,646.811! $3,646.81!' $3,646.81 $3,646.811. $6,796.811 $3,646.811 $3,646.81 $;3,-646.81 $3,646.811 $3,646.811 $3,646.81 $3:64&811 $3,646.81 $3,646.81 $3,646.81 $3,646.81 $3,646.81 $3,646.81 $3,646.81 $3,646.81 $11,120.00 Page I C:\Documents and Settings\SBuckley\Local Seftings\Temporary Internet Files\01-1<2F\092006 revised assessmement roll.xis M Council Agenda: 9/25/06 7A. Consideration of resolution declarin2, costs to be assessed. acceDtinLY assessment roll., and settine date for rlic hearine to adoot assessments for Public Intorovement No. 2005-(5C for the Extension of Meadow Oak Avenue from the Current Termini to CSAH 18 (Citv of Monticello Project No. 2005-05C) (WSB) WSB & Associates, Inc. has completed the proposed assessment roll for the extension of Meadow Oak Avenue from the current termini to CSAR 18. Wright County requires that. the assessments be certified to the County Auditor by November 30, 2006 for collection on next year's taxes. This deadline can be met by calling for the assessment hearing to be held at the October 23, 2006 Council meeting. By conducting the assessment hearing on October 23, adequate time for publication and mailing of notices will be provided to satisfy requirements for public improvement projects in accordance with Minnesota State Statutes Chapter 429. A copy of the proposed assessment roll is attached for the Council's review of the project costs and proposed assessments. In accordance with Minnesota Statute 429, in order to bond for this project the City Council must hold a public hearing prior to the contract award, which was completed on February 14, 2005, and also conduct an assessment hearing at the completion of the project. The project cost totals $726,102. The construction cost totals approximately $559,036. Indirect costs totaled $172,066, which includes engineering, material testing, administration, legal, and financing costs. The proposed assessments are as follows: Monticello Industrial Park .............................................$418,994.00 Resurrection Church ........................................................ $58,085.80 City Funds/Water Trunk ................................................$249,022.50 The project was funded through special assessment agreements to the adjacent benefiting properties (Monticello Industrial Park and Resurrection Church) and City trunk watermain funds. The Monticello Industrial Park property assessment is part of an overall agreement including the interchange and future Chelsea Road construction. A special assessment agreement with Resurrection Church has been finalized and includes the church dedicating right-of-way and casement along Meadow Oak Avenue and CSAR IS in exchange for no direct City street assessment and their driveway relocation and widening constructed with the project. A storm sewer assessment is included for upsizing storm sewer along Meadow Oak Avenue for future improvements within the Church property. A revised agreement is being finalized to also include restoration and erosion control work that was included with the project. F da.vg1,mdp—!2006 C,.,,,ilAg.nd.,1,9-25-06ccagipidal7AAfeadoitt)ak-Orde)�A�ll�-,--092506.doc 82 Council Agenda: 9/25/06 B. ALTERNATIVE ACTIONS: I Adopt the resolution for the improvement project declaring the costs to be assessed and setting the assessment hearing for October 23, 2006. 2. Do not set the assessment hearing date at this time. The City Administrator recommends that the Council authorize Alternative No. 1. Assessment Roll C Do—nis and Settingsidaitn.gros.viiigerLomiSettingsiTemporat3�/ntepmtl,-iiesIOLK-3'AGNITV-Meador,9akOrderls vffrg-092506do, 83 c Q U) (D '5�c w (D > C) ce) < Lo c, 0 ix -,4 CD N m$«± F- z w = 0") CN D0 0 CU a 0) a) -0 0 m E w U) E :3 (D D z %(D2_ E— Cc 0 a) LU 0 CL C: Q) CO U) — 0) 'ff 2� cu 0 a. U 3: 0 CL I w Council Agenda: 9/25/06 7B. Consideration of resolution declarin2 costs to be assesse►j. acceDtin2 assessment roll. and settin2 date for public hearin2 to adopt assessments for Public Improvement No. 2005-02C for the Extension of School Boulevard from 1ee2an Avenue to Redford Lane (Citv of Monticello Proiect No. 2005-0201 (WSB) WSB & Associates, Inc. has completed the proposed assessment roll for the extension of School Boulevard from Deegan Avenue to Redford Lane. The original project included extending School Boulevard to 90th Street in conjunction with the Poplar Hill (Insignia) development; however, since that development did not move forward, the roadway was extended to Redford Lane. Wright County requires that the assessments be certified to the County Auditor by November 30, 2006 for collection on next year's taxes. This deadline can be met by calling for the assessment hearing to be held at the October 23, 2006 Council meeting. By conducting the assessment hearing on October 23, adequate time for publication and mailing of notices will be provided to satisfy requirements for public improvement projects in accordance with Minnesota State Statutes Chapter 429. In accordance with Minnesota Statute 429, in order to bond for this project the City Council must hold a public hearing prior to the contract award, which was completed on April 11, 2005, and also conduct an assessment hearing at the completion of the project. The project cost totals $1,393,997. The construction cost totals approximately $1,085,348. Indirect costs totaled $208,649, which includes engineering, material testing, administration, legal, and financing costs. The proposed assessments are as follows: • Ocello, LLC ................................................$285,536 (via special assessment agreement) • Jefferson Commons ....................................$826,452 (City funded) • Prairie Ponds ...............................................$116,636 0 Taco Johns ....................................................$17,501 City Funds and Trunk Funds ....................... $147,872 (includes trunk watermain oversizing, storm sewer outlet pipe for Jefferson Commons pond, and extension of Redford Lane) The City has entered into a special assessment agreement with Ocello, LLC, which includes a negotiated assessment for the street and utility improvements fronting his property. Assessments to the Prairie Ponds and Taco Johns site are proposed to be assessed at 100% of the street and utility improvements fronting the properties excluding watermain oversizing. F,W—,,g1-rdp .. 2006 CovOl Ag,,d.,19-35-06 aagvidd 7BSchooIBI,dOd,,A,,,,sHg-09.1506.do, 85 Council Agenda: 9/25/06 Street lighting costs are not included with the project costs as this will be addressed via a separate public hearing. 1. Adopt the resolution for the improvement project declaring the costs to be assessed and setting the assessment hearing for October 23, 2006. 2. Do not set the assessment hearing date at this time. I! I HE 11• The City Administrator recommends that the Council authorize Alternative No. 1. Suvvortin2 Data: Assessment Roll C. 'Docawnts and S,,Ilingsldaiin.grossiitger'�LemI SettbastTenzporary Internet TilesiOLK3AGN ITM-SchoolBlvdO)derAssesHrg-092506 doc 86 k� I 'A co —j -2 IOR CY) (Y) a) Iq (C� or_70 :co-- 0 —619�\/\ 6-)- CO U) C) C:, Wci CN LO z 0-0 (0LO > 0 CN w 0 7o5 CD L: coCO) , 0E -0 0 Z -0 w U) � u)k2 5 co 11 . . = Z < o a) Z — E0 M 0 O Z LU CL 0CO) CL (D -ff 0 = := cu Q&C) n w CL k� I 'A eggR zooms UJ CY) (Y) Iq (C� :co-- —619�\/\ 6-)- CO U) k� I 'A Council Agenda: 9/25/06 7C. Consideration of resolution declaring costs to be assessed, accepting assessment roll, and setting date for public hearing to adopt assessments for Public lmorovement No. 2004-02C for the Extension of 7'h Street from St. Henry's Church to CSAH 18. and Construction of Highland Wav from 7th Street to CSAH 75 (Citv of Monticello Project No. 2004-020 (WSB) W 1160 k , 's , I , 1 WSB & Associates, Inc. has completed the proposed assessment roll for the extension of 7th Street from St. Henry's Church to CSAH 18 and construction of Highland Way from 7th Street to CSAH 75. Wright County requires that the assessments be certified to the County Auditor by November 30, 2006 for collection on next year's taxes. This deadline can be met by calling for the assessment hearing to be held at the October 23, 2006 Council meeting. By conducting the assessment hearing on October 23, adequate time for publication and mailing of notices will be provided to satisfy requirements for public improvement projects in accordance with Minnesota State Statutes Chapter 429. In accordance with Minnesota Statute 429, in order to bond and assess for this project the City Council must hold a public hearing prior to the contract award, which was completed on February 14, 2005, and also conduct an assessment hearing at the completion of the project. The project cost totals $2,115,791, The construction cost totals approximately $1,839,011. Indirect costs totaled $276,780, which includes engineering, administration, and legal costs. Bonding and interest costs were not included since Ryan Companies upfronted the funds in cash for the project. The proposed assessments are as follows: • Ryan Development ................................................................................... $2,103,135 (cash paid with Developer's Agreement) • Amended Ryan Development ..................................................................... $116,861 • Highland Way Signal Assessment ........................ ....................................... $19,401 ® St. Henry's Sanitary Sewer and Water Assessment ......................................$17,836 • St. Henry's Pond Grading ..................................................................... ....... $25,000 • Stormwater Trunk Fund .................. .................................... ........... ......... $3,720 The project was largely funded through special assessment agreements with Ryan Companies, the developer for the Monticello Retail Development. Project costs associated with the construction of the traffic signal at CSAH 75 and Highland Way are to be funded through special assessments to the adjacent benefiting property owners using 25% of the total cost and spread using estimated trip generation for all benefited properties. This includes the Macarlund Plaza and Jens Rivervue apartment buildings located in the northwest quadrant of the CSAH 39/CSAH 18 intersection. At the public hearing on February 14, 2005, the Council requested that WSB analyze the addition of the River Wood apartments, with the traffic signal assessment for the proposed signal at Highland Way and CSAH 75. Assessments to the apartments were not initially proposed; however, the apartments in question are zoned non-residential, and therefore, have been included in the assessment roll. C. -Documents and SetfingsWaxmgrossingMLocal settjtrgsJ7't?mpotwy Ititi?rnetFilesIOLKiUGNITM-7thStOrderAssessHrg-092506.doe 38 Council Agenda: 9/25/06 City staff is currently finalizing an amended development contract with Ryan Companies for additional utility work and site work on St. Henry's property that was added to the project after the original development contract was executed. Sanitary sewer and watermain assessments to St. Henry's include extending these utilities to their newly created lot located along the south side of 7th Street. In order to create this lot, the existing pond was relocated along the north side of 7th Street. The pond grading assessment listed above is for this work. Trunk storm sewer costs to be funded by the City's trunk storm sewer fund included removing and replacing the trunk storm sewer located along the east property line of the St. Henry's Church. property. A majority of this pipe was removed and replaced with the trunk sanitary sewer extension project. Street lighting costs are not included with the project costs as this will be addressed via a separate public hearing. Adopt the resolution for the improvement project declaring the costs to be assessed and setting the assessment hearing for October 23, 2006. 2. Do not set the assessment hearing date at this time. VJTMI�I M111 M The City Administrator recommends selecting Alternative No. 1. Assessment Roll Figure 6A — Highland Way Signal Assessments C:Docutnents and SetfingsWawi.grossingerlLocal SetfingslTempomry I?itenietFile.,vIOLK3UGNITV-7tliStOrder-4ssessHrg-092506.doc 89 &V f4 : w o, T A"� F E c 0 I 4 % T 6 / 4r 0j 14v Legend Estimated % of Trips to Signal j 37,' area Subtracted from Total Acerage J Pat -eel ID 41h) i Prepareci by, a, PROJECT LOCATION ,,,;F. 701 Xdrwypua SLOW 300 MN5641$ th Sti�,_�taitd Hwlbw I \\x, S tI, — 11, 11 T fj I I tt I t 111 .1 t 11 _ I I t., Pi, C t Figure Number 6A ==M EW Monticello, AIN Monticello__-_ D__ 1.770 — Ph 11 lose �od Highland Way — __ — - — - __ — __ __ C 155037001050 MARDOT PROPERTIES LLC ==7 =�: _=_= =_ __=__ � — =_= � _0532 Date: 912512006' 0.512 PROPOSED ASSESSMENT ROLL $4,479.77 1. HIGHLAND WAY SIGNAL ASSESMEN7 ---------- TABU W-- 347- Aa- N' svAJqNLnLAFAwmEN1 s I & 0390 6 0 U NW -STAt PW6 H10RwAT15 AT Fif0 H CA N 0 WAY! HART 90U L EWA 2.774 (BY ItE !nIP GtN_ERA1n(YN 7— PID # OWNER % TRIPS/__ TOTAL _ACREAGE ..—_--'-1000 SF—___.,. K_ _155037001020 RIVERVIEW PROP PARTNERSHIP TW GROSS FLOOR P GENERATION 1000 SF TOTAL TRIPS TRIPS t Wcariund Plaza I 20% ACREAGE USE Gross Floor Area TRIPS TO SIGNAL TO SIGNAL 168.56 1 (814) A 155084000010 k6MAkE7K,JOHN E 1.770 B 155084001010 LIBERTY SAVINGS BANK FSB I 1,4371 C 155037001050 MARDOT PROPERTIES LLC 0.48p MARDOT PROPERTIES LLC _0532 _E' 1_5_5037001040 —FIRST MINNESOTA BANK NA 0.512 F 155037001030 DAHLHEIMER,DEBoRAH $4,479.77 6-- 'f-556moloio KEAN OF MONTICELLO INC 1.9241 H 155011000130 BONDHUS,JOHN R & M HOGLUND 0390 50% 2.774 I —HOGLUND,GLADYSR 1—.387 J_ RYAN COMPANIES LJS�, INC 448,485 SF K_ _155037001020 RIVERVIEW PROP PARTNERSHIP Wcariund Plaza I --(944)._..—.._..— Gas Station 168.56 843 K jens, Rivervue Apartments RIVERVIEW PROP PARTNERSHIP 632 TOTAL] 8.818 Gross Floor Area is parcel acreage 0.002$90.97 Car Wash trips are based on number of trips Der wash stall, 4 (Gas Station trips are based on the number of trips per vehicle fueling stations Gas Station jPamel I was estimated to be 50% developable 843 IRvan Site trips are based on estimates in the approved EAW 632 (Apartment trips are based on the number of dwelling. units, K (24); L (8) (947) (Assessment to properties along the north side of CSAH 75 minus ligan = I r._Tj!tSTREET AND HIGHLAND WAY STREET AND UTILITY IMPROVEMENT-, —)0"" NAME (RYAN COMPANIES US, INC j QST. HENRY'S CHURCH 15A2 I Specialty Retail Center 44.32 683 50% 342 TRIPS (911) 1 0.033 $1,562.83 0.096 $4,479.77 12.52 J Bank 156.48 1,959 50% 980 Apartment 6.72 161 50% 81 0.008 $368.81 418 --(944)._..—.._..— Gas Station 168.56 843 75% 632 ,Apartment I 6.72 (944) 37% 20 0.002$90.97 4.63 Gas Station 168.56 843 75% 632 (947) 4,46 Car Wash 108,00 432 75% 324 (814) 3,36 1 Specialty Retail Center 44.32 I 149 75% 112 (84 1) 16,76 New Car Sales 3134 559 90% 503 3.40 Specialty Retail Center 44.32 151 90% 136 (814) 12.08 .—Specialty Retail Center 4432 536 90% 482 Final Signal Cost I $186,727.00 % ASSESSMENT TOTAL Signal TRIPS CSAH 75/Highland Way 0.033 $1,562.83 0.096 $4,479.77 0.062 $2,890.92 0.062 $2,890.92 0.032 $1,481.82 0,0111 $51123 0.049 $2,300,29 0.013 $619.84 0.047 $2,204.39 yisc 16,121 37% 5,965 0.584 $27,279-96 AW Generation20)______._ PE Apartment 6.72 161 50% 81 0.008 $368.81 (220) ,Apartment I 6.72 54 37% 20 0.002$90.97 22,490 10,207 1.000 $46,681.75 M01 MCI Council Agenda: 9/25/06 i. Consideration of + + declarinLy coststo be + acceptin2 assessment+ and settin2 date for public hearin2 to adopt assessments for Public Improvement 2004-01C r r' Interchan2e and Related Improvements (Citv of Monticello Proiect No.11,i :4 I1 WSB & Associates, Inc. has completed the proposed assessment roll for the construction of the CSAR 184-94 interchange and related improvements. Wright County requires that the assessments be certified to the County Auditor by November 30, 2006 for collection on next year's taxes. This deadline can be met by calling for the assessment hearing to be held at the October 23, 2006 Council meeting. By conducting the assessment hearing on October 23, adequate time for publication and mailing of notices will be provided to satisfy requirements for public improvement projects in accordance with Minnesota State Statutes Chapter 429. In accordance with Minnesota Statute 429, in order to bond and assess for this project the City Council must hold a public hearing prior to the contract award, which was completed, and also conduct an assessment hearing at the completion of the project. The assessments for this project were all completed through separate agreements with the benefited properties. A summary of the assessments is noted herein. It should be noted that many of the developers also provided land in exchange for the assessments. The project financing was very complicated and includes many funding sources. We are currently in the process of summarizing all of the costs, including right-of-way, to provide the Council with a full accounting. The project costs will be brought to the City Council upon completion of the project and completion of all easement negotiations. The City has also received funding from Mn/DOT and Wright County under separate agreements. A full summary of the project will be provided at a later date. The proposed assessments are as follows: ® Union Crossings.......................................................................................$2,150,000 (at 5.5% interest to start accruing on 9/1/06) - Block 1, Lot 1 ...............$ 741,105.00 - Block 2, Lot 1 ...............$ 541,800.00 - Block 2, Lot 2 ...............$ 331,315.00 - Block 2, Lot 3 ...............$ 70,305.00 - Outlot A ........................$ 59,985.00 - Outlot B .........................$ 202,745.00 - Outlot C .........................$ 202,745.00 - Outlot D ........................$ 0,00 ® Monticello Industrial Park.......................................................................$2,391,006 - A split of the costs by property will be provided on the final assessment roll. This assessment includes the proposed Chelsea Road improvements. C:IDommentsand Settings1dann.grossingerlLocalSettingslTemporary Internet FilesIOLK3IAGNITVICSAH181941nterchngeAssessHrg-092506.doc 91 Council Agenda: 9/25/06 Cedrus Creek Craftsman (Outlot A, Liberty Park) ....................................... $77,101 11 MMC Land Company ............................................................................ $221,597.50 - Lot 1, Block I Riverview Square .............$ 63,842.00 - Lot 3, Block I Riverview Square .............$ 48,433.00 - Lot 1, Block 2 Riverview Square .............$ 109,322.50 The assessments for Monticello Industrial Park, Cedrus Creek Craftsman, and MMC Land Company all fall under the stipulation that these assessments are deferred until January 1, 2011, at which time interest of 4% per annum will be computed with the first installment payable as part of 2012 taxes. I Adopt the resolution for the improvement project declaring the costs to be assessed, and setting the assessment hearing for October 23, 2006. 2. Do not set the assessment hearing date at this time. The City Administrator recommends selecting Alternative No. 1. QNSTIN C. -Documents and Settingsldam.grossingerlLocalSettingsITemporary Internet Files�OLK3IAGiVITM-CSAH18194]nterchngeAssessHrg-092506.doc 92 Council Agenda: 9/25/06 7f. Consideration of Avvrovin2 Resolution Declarin2 Costs to be Assessed, Accepting Assessment Roll. and Setting a Public Hearin2 Date to Adopt Assessments for Chelsea Road Extension (90th Street to CSAH 39) and School Boulevard (Chelsea Road to 1,330 Feet South) Project (Citv of Monticello Project No. 2005-11C) (WSB) WSB & Associates, Inc. has completed the proposed assessment roll for the extension of Chelsea Road from 90th Street and the construction of 1,330 feet of School Boulevard (now Dalton Avenue NE). Wright County requires that the assessments be certified to the County Auditor by November 30, 2006 for collection on next year's taxes. This deadline can be met by calling for the Assessment Hearing to be held at the October 23, 2006 Council meeting. By conducting the assessment hearing on October 23, adequate time for publication and mailing of notices will be provided to satisfy requirements for public improvement projects in accordance with Minnesota State Statutes Chapter 429. A copy of the proposed assessment roll is attached for the Council's review of the project costs and proposed assessments. In accordance with Minnesota Statute 429, the City Council must conduct an assessment hearing at the completion of the project. The project was funded through assessments to the adjacent benefiting properties (Chadwick/Bowers and Moon Motors) and City trunk funds. The Chadwick/Bowers and Moon Motors property assessment is part of an overall agreement between Chadwick/Bowers and the City. The total project cost, including construction, engineering, legal, and administrative costs, is $4,671,387.25. This figure is current as of September 15, 2006, and includes all construction costs to date. The feasibility report estimated that the total project cost would be $5,708,720.99. The total project cost is 1,037,333.74 below the feasibility report estimate. Because the Chelsea Road, School Boulevard, and Lift Station projects were so intertwined, the indirect cost expenditure has been spread proportionally between all assessments. The assessments, which include all costs, have been separated into individual payment amounts that are proposed to be assessed in November, payable with 2007 taxes. Please note that the 33 -foot strip, which amounted to a roadway length of 34.49 feet, has been separated as well. This strip of property was remaining as Outlot G when the Otter Creek Crossing plat was completed, and is located adjacent to the Moon Motors property. A summary of the proposed assessments is noted as follows: 0 Moon Motors.............................................................................$292,600.37 34.49 -foot Strip (City).......................................................... .......$23,696.51 ® Chadwick/Bowers...................................................................$2,390,565.64 ® Monticello Business Center (City)..........................................$1,348,069.37 Trunk Funds ..................... ...............................................$959,254.85 C. Documents and Settingsldaan.gmssingerlLocal SettingslTempomry Internet F}lesIOLK3IAGN IYi I-AssessHrg-042306.doc Council Agenda: 9/25/06 The above figures were assigned according to a Pre -Development Agreement dated September 25, 2004 between the City of Monticello and Otter Creek, LLC, J. Edwin Chadwick, LLC, and JX Bowers, LLC. The basic thrust of the agreement was that Chadwick/Bowers would be assessed 79% of the street and utility improvement costs for Chelsea Road, and the City would cover costs for the remaining 21 % of Chelsea Road, all of School Boulevard (now Dalton Avenue), and the Lift Station improvements. The Chadwick/Bowers cost also includes $131,155 for the excess Rask land purchase north of Chelsea Road per the agreement. It does not appear that this has been previously paid. Following the public hearing, the City Council will be asked to adopt the assessment roll based on input from affected property owners. Adopt the resolution for the improvement project declaring the costs to be assessed and setting the assessment hearing for October 23, 2006. 2. Do not set the assessment hearing date at this time. It is the recommendation of the City Administrator to authorize Alternate No. 1. Proposed Assessment Roll Total Project Cost/Funding Summary mud &tting,�do.n.grnssinget-lacalSettingslTeniporalyinteimt &1esDLKA4GN ITM-AssessfIrg-092506 doe M I WHI / � 0 ry, m (D E c 2J "2 cu co W 0 0 z\/ 0 $D w U) 'a 0 2\k C: CD a o 4-- 020 m F cr) 0 'IT C) o C, C) C, .2 C� U(Y) 0 CD CU S\$ z 2\\/ 2 \\ C) (D CD LU C� -0 0 -C -0 E =s EZ =3 Cj < LO o a) Z E =om® z 0 a) a) 0. 0 ff U) w 0 L) IL �: o 0. 1-- I WHI CHELSEA ROAD EXTENSION, SCHOOL BOULEVARD & NW LIFT STATION PROJECT FUNDING POST CONSTRUCTION Tables created 9/15/06 based on R.L. Larson Pay Voucher dated 814/06 City of Monticello Project No. 2005-011C; WSB 01338-13 90`h Street 79% Developer 21 % City 40,732.08 CONSTRUCTION PROJECT COST/FUNDING SUMMARY 31,277.140 72,009.21 32,178.34 0.00 0.00 Schedule A Schedule B Schedule C 1 _ Schedule D 6.568.2011 15,121.93 I) Surface 548,437.521 2,792,513.85 $138,447.20; ........ ...._ $11,212.27: ............................. .._..-........ $1,069,065.85: $323,964.96 Improvements Water Main ( Sanitary Sewer Storm Sewer Total Pond Grading....................................................... .................................................... ........_........................._._...................................................... $392 392.81 t................ $RtS.......-.- ................$0.74..............................$70,68;..........................$21 168,059.52 168,059.52 Lift Sta. & Force Main ...............................................................................-........................................................................................._...._....., .....................:.............................................i.......................................... $1,968.01 .........................................,.......................................... $187,645.091 .................._..............521,796.60 ....................................................-........................... $11... .......-........... 521 796 601 CSAH 39 $66.81; ....... ....... ,....... .. ... 30,091.50 0.00 0.00 20,783.931 50,875.44 .............. ........................ ,.............. $ 012 111 79% Developer Cost 23,772.29 0.00 0.00 16,419.311 40,191.59 ...................._...................................................... 2.? CitvCost .......................:........................................................, b,319.22 0.00 0.00 4,364.63 10,683.84 Chelsea Road ............................................... 598,338.67 304,249.04 -...............-............................................................... 404,041.55 265,916.01�� 1,572,545.28 ($1,050.00)' 79% Developer CostIl 472,687.55 221,159.74 314,804.38 210,073.6511 1,218,725.32 $4,536.99: ° 2City 1 % Cost' 125,651.12; 58, 789.30 83, 682.18 55, 842.3611 323, 964.96 I!Hu Funds 0.001 24,300.00 5,555.00 0.00 29,855.001 School Blvd. I� 147,$83.79 99,303.66 97,639.45 62,400.9211 407,227.81] 1 city costil 147,883.79 91.563.66 90,544.45 62,400.9211 392,392.81 11 .......... .............................. ........... .............._.............................. .............Trunk F:inds0�.............................__a:o0._._.. 7,740.00 _ 7.095.00 0.0011 14,835.00 90`h Street 79% Developer 21 % City 40,732.08 0.00 0.00 31,277.140 72,009.21 32,178.34 0.00 0.00 24,708.9411 56,88728 8,553.74 0.00 0.001 6.568.2011 15,121.93 817,046.031 403,552.70 1,023,477.601 548,437.521 2,792,513.85 TOTAL PROJECT COST/FUNDING SUMMARY 34.49 Foot 1 Item Moon Motors € Strip (City) Agmt - 25% of Lot at Sandberg Road $2,108.981 $170.80: ....................................................................................................................... .................. ........................:..... Agmt -- Extra Depth for S..ewer and.....St..ub Street...........$4.710.12: $381.45: ............................................................... --..................... ..................................................... Agmt -- Outlot A ............................................................................................................................................... Agmt -- Prev Rept & City Expenditures Prior to Agreement e...m..'al...'o"v....of T..........emporary .....p-o-r-a-r.....Acces................................._..................................._ Rovs Const -- 90 Street .............................................................................................................................................. Const -- Chelsea Road ................................................................................................................................................ Const -- CSAH 39 .............................................................................................................................................. Const -- Pond Grading ............................................................................................................................................ Const -- Sanitary Lift Station and Force Main ............................................................................................................................................... Const .. School Boulevard ................................................................................................................................................ Engineering -- City Inspector (1-1/2 In @ $68/hr) ............................................................................................................................--................. Engineering -- Liesch & Associates ............................I.................................................... .............. .............. .................... Engineering -- WSB Dec'04 to Sep'06 (+est through 10/06) ............................................................................................................................................... Engineering -- WSB for Chelsea Road Ph II (Jan-Mar'02) ............................................._.................... ............. ............ ........................... ............... House -- Dumpster Rental ............................................................................................................................................... House -- Misc Professional Services -- Rask House Purch ............................................................................................................................................... House -- Public Works o ks L aborfor Cleanup House -- Publications -- House Removal House -- Rask Property Purchase House -- Relocation of Tenants ............................................................................................................................................... House -- Sale of House ................................................................................................................................................ House Removal / Cleanup Costs ................................................................................................................................................ Legal -- City Attorney -- Campbell Knutson Le .....g...a] .........................................ng....Fe.........es.......R,*e"......alignment............................................................. -- Plat Recordi-- Re ........................................................................................................................................... Legal -- Publications -- Monticello Times .e..............................................._......................................................................................... Legal -- Publications -- Reed .......-............................................................................................................. Admin --Bonnd Costs .............................."in'.......................*o-f.................................................................. Admin -- City Admin Fees (2% of Construction Costs} Admin .............. - "-(".n.nct.............('nctc............f..n.r Prni .......................rrh i..........NZ........1 ......../n�....................... . Int ar..tth..rm, Additional Rask Property Purchase Total Assessment Chadwick/ Monticello Bowers Business Park Trunk Funds 1 Total $16,285, 22 . $4,935.00; $23,500.00 .......-- 1 $36,370.78. .......:................................................................................. $11.021.641 $52.484.00 $1,909.48: <.........................................:........-...................................,........................................., $154.64; $14,744.71; $4,468.17 $5 384.64; t............._,................................_.....................................................,......... $436.082 $41,579.281 $12,600.00 $2,243.60; ......................................................................:.............................................:.......................................... $181.70: $17,324.701 ............ ..................... $5,250.00 .......$6,462.39; ..................................... $52 ..._...............$49,901,52 ..................................................................... $15,12193 $138,447.20; ........ ...._ $11,212.27: ............................. .._..-........ $1,069,065.85: $323,964.96 $4565.77: .........................._......................_ $369.76: .................... $35,256.0 ...................... $10,683.84 .................._..... .................. a.........................................'s. ............. ............................. 1--..... .......... .1.......................................... ................................... $392 392.81 t................ $RtS.......-.- ................$0.74..............................$70,68;..........................$21 <......................... ;42 $24,300.591 .....................:.............................................i.......................................... $1,968.01 .........................................,.......................................... $187,645.091 $120,655.44 4.7: .$1,413 ... ................... $11... .......-........... $10,914: 56:.................._$3,307.50 $66.81; ....... ....... ,....... .. $5.411$515.931; ._..-..................... $156.35 $131.07€ .._........ $10.611s1 .............. ........................ ,.............. $ 012 111 ................. ........... $306.71 $89.74: _ .............. $7.27: $692.99: $210.00 $13.501 ....................................................:..............................................>.........................................: ........................... ................................ $1.09; .............;...... $104.23: ............... ...................... $31.58 $72702.601 .> ................;.................... $5,887.89 .....................;............_........... $561,397.20; $170,123.31'. $1,203.02;..........................$97,43;.......................$9,289.50::..... .................. _.........................................., ;O5'. ($448.72): ............................................................---.............................;..........................................i ($36.34)1 .................._2.815 ($3,464.94)1 ($1,050.00)' $554:2.1 ......................... $44,88;.......................$4,279,55;................... $1,296 :86' $587.551 ............................ :......................... $47.58: ................ :.......... $4,536.99: $1,374.87 12.21 $099;.............................. 0... .................................. .:................................ $94,25 ..........: ... ............................ .$32.32 ............................... ...... $75 :62 ............................$2:621...........................$249:53;.......................... $38.791 $3.141 $299.56: $90.78; $2,765.34<.......................$223.96.....................$21,353.88 .... .............. ....................... ...................6,470.99's :.............................................. $299.15:..................._$28,522941...................$8,643:46: ... ...................................... .; .$3,693:8.1_ $19,602.67;................... . $1,587.54 $151,368.471: $45,870.03: $292,600.37; $23,696.51: $2,259,410.64: $1,140,866.87; $131,155.00 $207,202.50 .00 $4 $959,254.851 $4,675,829.25 $292,600.37 $23,696.51 $2,390,565.64 $1,348,069.37 $959,254.85 K:\01338-13\Quantity\Final\Cost Breakdown Post Construction FINAL.xIs •s $25,000.00 ...72,..... ............................................I $ 1 $29,855.00 ................................................................. ................ ........ $1,572,545.28 $50,875.44 $168,059.52 ..................................................................... $168,059.52 $521,796.601 .................................................................. $521,796.60 $14,835.00 ................. ................................$102.00 $407,227.81 ..................................................................... $1,639.00 .................................................................... $1,639.00 $119,417.06 $453,986.19 $15,750.00 .............. 0 ........................... ...... $744.50 I........................ ................................................................... ................. $1,460.50 ................. $1,000.00 $150.40 ....................................$810, 11...00 $4 $959,254.851 $4,675,829.25 $292,600.37 $23,696.51 $2,390,565.64 $1,348,069.37 $959,254.85 K:\01338-13\Quantity\Final\Cost Breakdown Post Construction FINAL.xIs •s Council Agenda - 0912512006 Review of revised information for proposed Li2htinLy Improvement projects on School Boulevard from Edmonson Avenue to FenninLy, Avenue, on East 7 th Street from St, Benedict's entrance to CSAH 18 and Hic-,hland Way from East 7 th Street to CSAH 75, and, for Phase 11 Pedestrian Safetv Improvements alon2 School Boulevard At the September 11, 2006 City Council Meeting, the Public Works Director presented preliminary design and cost information for four (4) proposed Lighting Improvement projects, and for the Phase 11 Pedestrian Safety Improvements for School Boulevard East as proposed by WSB and Associates in their School Boulevard Pedestrian Crossing Study dated August 17, 2005. At the conclusion of the Public Works Director's presentation the City Council discussed the proposed improvement projects and requested that staff revise the preliminary designs and cost estimates for two of the proposed Lighting Improvement projects, numbers I and 4, as well as for the Phase 11 Pedestrian Safety Improvements to School Boulevard East, project number IA. Council then requested that the revised design and cost information be brought before them at their next regularly scheduled meeting on September 25th. The Council also voted to table the remaining proposed lighting improvement projects, numbers 2 and 3, until a later date. A brief recap of each of the three proposed improvement projects is provided below, along with a summary of the revisions requested by Council and how these requests were addressed. In addition, estimated costs have been tabulated for each project and are included as an attachment. Lighting Improvement Prolect #X - As outlined at the September I lth Council meeting, this proposed improvement project provides street lighting for School Boulevard from Edmonson Avenue to Fenning Avenue utilizing 250 - watt high-pressure sodium rectilinear fixtures mounted on 25 -foot tall aluminum poles. The poles would be spaced between 300 to 350 -feet apart on alternating sides of the roadway when possible, which is based on specific requirements of Great River Energy (GRE) for clearance between their lines and any permanently mounted infrastructure under or near their overhead transmission lines. As such City staff met with GRE on site to determine exactly where the poles could and could not be placed, which is reflected in the attached design. Discussion at the September 1 11h Council meeting focused on providing greater lighting levels along existing and proposed pedestrian facilities on both sides of School Boulevard. However, no clear consensus appeared to be reached regarding what the appropriate level of lighting should be. Therefore, in an effort to provide Council with information that can be used to evaluate various levels of lighting for these pedestrian facilities, the project was split into three options described below in greater detail as projects La, Lb and I.c. a. Project La augments street lighting adjacent to existing and proposed pedestrian facilities with 100 -watt high-pressure sodium fixtures mounted 14 -feet high on the backside of the poles. In addition, 100 -watt high-pressure sodium fixtures mounted individually on 14 - foot tall poles are provided between the street lights to achieve a maximum spacing of roughly 300 feet along all existing and proposed pedestrian facilities. A total of 5 street lights without backside pedestrian lighting, 17 street lights with backside pedestrian lighting, and 19 individual pedestrian lights are proposed for this project. M Council Agenda - 0912512006 The estimated construction cost of this project is $325,200. As previously stated, the majority of property along School Boulevard is backyard residential property which is probably not assessable. The only assessable property on this section of School Boulevard would be the Monticello School District between Fallon Avenue and Fenning Avenue on the north side of School Boulevard. There is a total of 12,360 lineal feet of property adjoining School Boulevard, of which 3,810 feet belongs to the school district, 1,325 feet is City Park, and 7,225 feet is backyard single family or townhouse residential property. If all of the property fronting School Boulevard were to be assessed, including the City Parks, the assessment would amount to $26.31 per linear foot. b. Project Lb augments street lighting adjacent to existing pedestrian facilities with 100 -watt high-pressure sodium fixtures mounted 14 -feet high on the backside of the poles. In addition, 100 -watt high-pressure sodium fixtures mounted individually on 14 -foot tall poles are provided between the street lights to achieve a maximum spacing of roughly 300 feet along all existing pedestrian facilities. A total of 7 street lights without backside pedestrian lighting, 15 street lights with backside pedestrian lighting, and 14 individual pedestrian lights are proposed for this project. The estimated construction cost of this project is $317,400. As previously stated, the majority of property along School Boulevard is backyard residential property which is probably not assessable. The only assessable property on this section of School Boulevard would be the Monticello School District between Fallon Avenue and Fenning Avenue on the north side of School Boulevard. There is a total of 12,360 lineal feet of property adjoining School Boulevard, of which 3,810 feet belongs to the school district, 1,325 feet is City Park, and 7,225 feet is backyard single family or townhouse residential property. If all of the property fronting School Boulevard were to be assessed, including the City Parks, the assessment would amount to $25.68 per linear foot. c. Project Lc augments street lighting adjacent to existing and proposed pedestrian facilities with 100 -watt high-pressure sodium fixtures mounted 14 -feet high on the backside of the poles. A total of 5 street lights without backside pedestrian lighting and 17 street lights with backside pedestrian lighting are proposed for this project. The estimated construction cost of this project is $298,800. As previously stated, the majority of property along School Boulevard is backyard residential property which is probably not assessable. The only assessable property on this section of School Boulevard would be the Monticello School District between Fallon Avenue and Fenning Avenue on the north side of School Boulevard. There is a total of 12,360 lineal feet of property adjoining School Boulevard, of which 3,810 feet belongs to the school district, 1,325 feet is City Park, and 7,225 feet is backyard single family or townhouse residential property. If all of the property fronting School Boulevard were to be assessed, including the City Parks, the assessment would amount to $24.17 per linear foot. Li_-hting Lmprovement Pro&Lt #4 - As outlined at the September 11th Council meeting, this proposed improvement project provides street lightin,� for East 7 1h Street from St. Benedicts entrance to CSAR 18 and Highland Way from East 7t Street to CSAH 75 utilizing 250 -watt high-pressure sodium rectilinear fixtures mounted on 25 -foot tall aluminum poles. The poles would be spaced between 300 to 350 -feet 101 Council Agenda - 0912512006 apart on alternating sides of the roadway, which is reflected in the attached design. Pedestrian lighting is not proposed to be included with this project. Discussion at the September 111h Council meeting focused mainly on the amount and source of the project costs. The total construction cost of this project is estimated to be $95,676. Staff contacted Ryan Companies and verified that they plan on contributing $30,000 in cash to this project. The remaining funds would be paid for using funds previously deposited with the City by Ryan Companies for street assessments for the Union Crossings project. Ryan Companies had intended to donate three existing street lights to the City that were installed on Highland Way during the Union Crossings project, however the City understands that Xcel will not maintain these lights so we will instead need to install three new lights on Highland Way as shown on the attached design layout. Phase II Pedestrian Safetv Improvement Proiect #IA - These improvements are identified as the Phase 11 Pedestrian Safety Improvements for School Boulevard East in the School Boulevard Pedestrian Crossing Study dated August 17, 2005. These improvements include construction of two bituminous path segments on the south side of School Boulevard between Country Avenue and Farmstead Avenue, and between the two mid - block crossings on School Boulevard on opposite sides of Eider Lane, including concrete walk between School Boulevard and Falcon Avenue at the easterly mid -block crossing. Also included in this project are construction of two permanent bump -outs at the existing mid -block crossing locations, additional pedestrian signing, crosswalks, pedestrian curb ramps and a pedestrian signal for use at one of the two mid -block crosswalks. See attached layout. As previously mentioned, concrete walk is proposed to be constructed between Falcon Avenue and School Boulevard to connect the Cardinal Hills Neighborhood to the mid -block crossing for School Boulevard. There has been some opposition to this walkway in the past on the part of neighborhood residents, however according to the School Boulevard Pedestrian Crossing Study this connection is supported by the number of students using the area to access the mid -block crossing. The residents feel that crosswalks at Pelican Lane and Eider Lane would provide safer crossing routes for children going to school than the mid -block crossings. However, a significant number of vehicles turn left into the High School entrance at Eider Lane during peak hours of pedestrian use, and compounding this problem is that the sun shines directly in motorist's eyes during the early morning hours while waiting to turn left into the School parking lot. Due to these facts staff recommends the continued use of the easterly mid -block crossing rather than providing a crosswalk at Eider Lane. Staff would also recommend that the walkway be provided as proposed to connect Falcon Avenue to the mid -block crossing at School Boulevard, with the addition of split -rail fencing each side of the walk to deter access to the adjacent ponds. The total project cost is estimated to be $191,500. With 12,360 lineal feet of property fronting on School Boulevard, the cost per front foot would be $15.49 per lineal foot. Similar to Lighting Improvement Project #1, the majority of this property, 7,225 feet, is backyard residential single family and townhouse, 1,325 feet is City Park, and 3,010 feet belongs to the School District. Staff did contact the School District to discuss this project, and while they are in favor of constructing the proposed improvements, they are opposed to being assessed for this project since they did not budget for these improvements and there is no money available at this time to contribute in any amount. 102 Council Agenda - 0912512006 B. ALTERNATIVE ACTIONS.: 1 Select one or more of the proposed improvement projects and direct staff to move forward with the design of the selected project(s). 2. Table the proposed improvement projects for further study. 3. Do not move forward with any of the proposed improvement projects. The City Administrator, City Engineer and Public Works Director recommend that the City Council approve alternative action #1. 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CD =s co o 2. (a =3 CO CD R cn 5 CL En Z) CD Ef ff 6 CD —, o m Cc cQ cn w M z OO z m 0-n 0 Ch z X z co --1 0 c T ;D 0 -n m M co M ch -0 m m 0) 07 w M ;D -n -n X al C) _n CD -n C> 0 -n -n z 0 G) c- m M 0 > m Cl) U) 0 C) 0 ;u cn C) 0 -n ul CA (n To C) > CA -n --i _n 0 m Gi 0 -4 m Cl) 0 p 00 -4 Ul o"o 31 -4o 00 C) .4. 0 0X Cl) 0 0 O C) C_ m mCi m 0 Z 0 =3 l< Ct 0) > > o CO > o U) 0 U) > 0 M — or to c @ (1) 0 =r cn CD -0 0 -a U) O= U) -0 0 CD -0 0 CD 0 si (n 0 =r 0 CD Cl) m Im 0 CD .69 CL U) (n 0 cn 0 (on 0 0 cn w cn 0 0 cn U) > 0 Er"o M 3 CwD (D En m 3 CD (n 3 D CD cn U) EK 3 — CD CD (n C_ 5 C:) FD. =) m m O -n M 0 0 MU) 0 i _w 0 d 0 c T Cl) C) 0 O m > c 2 M m 4 o a (A > M PI M (0) 0) to 1.9 0 M m 0 0) w CO) A to -4 OD v G) 09 M Z M m Z .... ..... . ------ Council Agenda: 9/25/06 9. Consideration of Project Award for Dalton Avenue. Dalton Court, and Dalton Wav Street and Utilities and Appurtenant Work (Citv of Monticello Project No. 2006-. 15C) (WSB) refl] [ -01 10T91 0 9 101 A At the August 28, 2006 City Council meeting, the Council authorized the preparation of plans and specifications for constructing Dalton Avenue NE and Dalton Court, with an alternate for the construction of a portion of Dalton Way, to further develop the Otter Creek Industrial Park and to accommodate the development of the AVR site. The project includes constructing Dalton Avenue south to the Monticello Business Center property line, as well as Dalton Court. A bid alternate to construct approximately 600 feet of Dalton Way was included in the contract documents. In addition, the project includes constructing sanitary sewer, water main, storm sewer, and restoration of all disturbed areas. Storm sewer improvements will include providing a hydraulic connection between the existing storm pond and the pond being constructed with the Monticello Business Center grading project. Funding for this project will be provided from City funds to be recouped with the adjacent lot sales and tax base generated from the business park. Bids will be received on Friday, September 22, 2006 at the Monticello Community Center. The bid opening will be conducted after preparation of this agenda item. In an effort to expedite the construction of this project, we anticipate a successful bidder and will present the recommendation at this City Council meeting. The bid results will be provided to the City Council prior to the City Council meeting via email. The Engineer's Estimate for the base bid was $1,009,728.00. The Engineer's Estimate for the base bid plus alternate one was $1,209,341.50. Construction operations are proposed to start in October 2006, in order to provide access to the AVR site and to accommodate AVR's request to begin construction this fall, so it is imperative that the Council consider awarding the project at this time. 1. Consider award of this project to the lowest responsible bidder. 2. Do not award the project at this time. To be provided at the meeting. FUIINNMM��� The Letter of Recommendation and Bid Tabulation will be available at the City Council 104 meeting. F,-1d,,gi,.rdpw2006 Co,m,ilAg,ndn,)9-25-06,c,,gndal9D.1a,,4,,I',•ojA,,.,d-09:506 do, A WSB -Q Associates, Inc, Infrastructure I Engineering I Planning I Construction September 25, 2006 Honorable Mayor and City Council City of Monticello 505 Walnut Street, Suite 1 Monticello, MN 55362 Re: Dalton Avenue, Dalton Court, and Dalton° Way Street, Utilities, and Appurtenant Work City of Monticello Project No. 2006-15C WSB Project No. 1627-57 Dear Mayor and Council Members: 701 Xenia Avenue South Suite 300 Minneapolis, MN 55416 Tel: 763-541-4800 Fax: 763-541-1700 Bids were received for the above -referenced project on Friday, September 22, 2006, and were opened and read aloud. Thirteen bids were received. The bids were checked for mathematical accuracy and tabulated. The bid package included one alternate in addition to the base bid. The base bid includes construction of Dalton Avenue and Dalton Court. Alternate No. I includes construction of Dalton Way. The Engineer's Estimate for the Base Bid plus Alternate No. 1 was $1,209,341.50. Please find enclosed the bid tabulation indicating the low bidder as R. L. Larson Excavating, Inc., St. Cloud, Minnesota, in the amount of $1,003,560.02 for the Base Bid plus Alternate No. 1. We recommend that the City Council consider these bids and award a contract to R. L. Larson Excavating, Inc., for the Base Bid plus Alternate No. 1, based on the results of the bids received, Sincerely, WSJ & Associates, Inc. Shibani K. Bisson, P.E. Project Manager Z� Enclosure cc: Doug Moen, R. L. Larson Excavating, Inc. srb Minneapolis I St. Cloud K.-\01627-Sn4d,,ti,,\Colllll.—IIAd mU*R RECAYAWT8 1--092506.d— Equal Opportunity Employer Council Agenda — 09/25/06 The Fiber Optic Task Force and consultants have completed the Broadband Feasibility Study authorized by City Council in April 2006, and are prepared to report on the findings from the study. As a review of the process, we wish to update Council where this began. With the encouragement of Economic Development Director 011ie Koropchak and assistance of Council Member Wayne Mayer, Milda Hedblom from Dain International, and Dennis Nelson who led the City of Windom fiber project were invited to make a presentation to the City Council in May 2005. City Council listened to the presentation, which described fiber optics and outlined the use of fiber in current and future technology. The Council authorized an investigative meeting to hear more about fiber optics and the possibility of forming a Task Force that would delve into more detail about this topic. 011ie Koropchak invited a group of business and public representatives to the meeting, which was led by Milda Hedblom. The group did recommend forming a Fiber Optic Task Force and all those present volunteered to be members of such a task force. City Council approved the recommendation to farm a task force to further investigate a fiber optic network to provide high speed services for data, voice and video to homes and businesses and authorized Milda Hedblom to serve as consultant to the task force. In December 2005, the Fiber Optic Task Force was authorized by City Council to prepare a Request for Proposal (RFP) for a broadband feasibility study. Ten firms submitted proposals ranging from about $48,000 to $110,000. The Task Force reviewed the proposals and eventually recommended Doug Dawson of CCG Consulting to conduct the study with Milda Hedblom continuing to serve as technical consultant for the City and Springsted, Inc. providing financial analysis services for the study. The process for the feasibility study included several meetings with Doug Dawson, a residential market survey, interviews with local businesses, analysis of fiber optic models, business case and financial analysis, and assessing risks and benefits of providing a fiber optic network. Members of the Task Force, city staff and consultants met a number of times during the process to provide assistance with gathering data and discuss various aspects of the study as it progressed. The broadband feasibility report that was distributed to Task Force members and council was a result of many meetings, discussion, research, and review of data over the past five months. The report itself was analyzed and updated several times to provide the most current and detailed findings to enable Council to make an informed decision. Milda Hedblom (Dain International), Doug Dawson (CCG Consulting), and Craig Rapp and Brenda Krueger (Springsted, Inc.) will present the Task Force findings to Council and answer questions that Council may have. Council Agenda — 09/25/06 B. ALTERNATIVE ACTIONS: 1. Approve proceeding with a Citywide broadband fiber network project for the provision of telecommunications services by the City to all its residents and businesses, on the condition of financing such services solely by revenues and not by tax levy. 2. Do not approve proceeding with a Citywide broadband fiber network. project. It is the recommendation of the Fiber Optic Task Force and consultants based on the Feasibility Study that the City move forward with the process to develop a broadband fiber optic network to serve the entire community (Alternative No. 1.) The process will include an education and information program to identify how many in the community are interested in taking services from the network when built. The education and information program would be led by the Fiber Optic Task Force and interested citizens. Funding for this program and other related costs has been included in current and next year budgets. • Copy of Broadband Feasibility Study (distributed earlier due to amount of content) • Presentation will be given at Monday, September 25 council meeting Um Council Agenda: 9/25/06 Consideration of aporovin2 Dlans. suecifications and advertisin2 for bids for parkin2 lot and hardcourt for Goveland Park, City Project No. 2006-27C. Because the informational meeting with the residents of the Groveland development is not until September 21, 2006 at 6 p.m., all information relating to this item will be made available at the Council meeting on Monday night. 107 Council Agenda: 9/25/06 12. Authorize Improvements for the River Mill Pathwav Between Mill Run Road and, River Forest Drive (City of Monticello Project No. 2006-30c), (WSB/JO) The "River Mill" pathway located between Mill Run Road and River Forest Drive along the rear of the River Mill and River Forest developments currently exists as a gravel pathway. Some segments of the pathway are in rough shape with little or no gravel present and with vegetation growing within the pathway whereas some segments appear to have adequate gravel in place (see attached pictures). This project was planned to be paved some time ago, but was delayed due to drainage concerns along with how the trail would fit adjacent to the proposed north frontage road. Residents have recently again requested (via the Web Service Desk) that the pathway be maintained and paved to allow pedestrians and bikers to utilize the pathway to its fullest extent. The gravel portion of the pathway is approximately 1,750 feet long. In consideration of Council's request to complete this project, and in consideration of a neighborhood request, we have evaluated the alignment of a potential northerly frontage road from the Sunset Ponds development to CSAH 75 and how the existing path would be impacted if this roadway were to be constructed. We have analyzed a potential alignment and elevation of this roadway taking into account the steep slopes from 1-94 and the need for retaining walls along the roadway (see attached drawing). If constructed on the current alignment, the pathway could potentially be impacted along the rear yards of the lots along Mill Trail Lane upon construction of the roadway. Approximately 300 feet of the pathway may need to be shifted and raised 4-5 feet to allow for the pathway to match into the potential roadway grades. In addition, construction of the roadway would require Mn/DOT approval as the roadway would partially be within the 1-94 right-of- way. This includes the old off -ramp to CSAR 75 that is now unusable with the new CSAR 18/1-94 interchange. It is unclear when and if this roadway would be constructed given that it would require Mn/DOT approval, Depending on when additional development occurs to the east is also a factor for determining the need to build the roadway as this would alleviate some traffic directed to Gillard Avenue and CSAR 39. Therefore, the Council should consider if paving the pathway at this time, knowing that a segment of the pathway would need to be replaced if the roadway is constructed, is feasible. Another option would be to place bituminous or crushed concrete aggregate on the existing pathway as a temporary improvement to make the pathway more useable, while providing a solid base and somewhat smooth surface. The Council could also consider simply adding more gravel to the existing pathway. In any case, some minor drainage improvernents may be needed to alleviate some ponding areas along the pathway. The following are a few options we would ask the Council to consider: Option 1: Pave the pathway. This would include adding gravel and some minor storm sewer and drainage improvements. Approximate Construction Cost = $50,000 C:lDocuments and Settings1daVOLgrossingerlLocal SetfingsTemporary Internet FilesI0LK313GNITM-OrderRiverAlitiPathwayProject-092506.do,- 108 Council Agenda: 9/25/06 Option 2: Place bituminous or crushed concrete aggregate on the pathway and some minor storm sewer and drainage improvements. Approximate Construction Cost = $23,000 Option 3: Place 3-4 inches of gravel on the pathway and some minor storm sewer and drainage improvements. Approximate Construction Cost = $20,000 M Option 4: Do not improve the pathway at this time. The pathway is proposed to be 8 feet wide. It is anticipated that the cost for each of the above options would be funded from trail funds. I Authorize preparation of plans and obtain, quotes to construct the River Mill pathway as a bituminous pathway. 2. Authorize preparation of plans and obtain quotes to construct the River Mill pathway with bituminous or crushed concrete aggregate. 3. Authorize preparation of plans and obtain quotes to construct the River Mill pathway with gravel. 4. Do not authorize any work at this time. The River Mill pathway is an important segment in the City's trail system that directly connects residents on the northeastern side of the City to businesses, schools, etc. located to the west. Residents have voiced concerns over improving the pathway. The Council should consider if potential impacts from a northerly frontage road would be significant enough to construct the pathway improvements at this time. At a minimum, staff would recommend authorizing Alternative No. 3. 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