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EDA Agenda 03-14-2018AGENDA REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, March 14th, 2018 — 6:00 p.m. Mississippi Room, Monticello Community Center Commissioners: President Steve Johnson, Vice President Bill Tapper, Treasurer Jon Morphew, Tracy Hinz, 011ie Koropchak-White and Councilmembers Lloyd Hilgart and Jim Davidson Staff. Executive Director Jim Thares, Jeff O'Neill, Angela Schumann, Wayne Oberg and Jacob Thunander 1. Call to Order 2. Roll Call 3. Consideration of additional agenda items 4. Consent Agenda a. Consideration of approving Regular Meeting Minutes — February 14, 2018 b. Consideration of approving Special Workshop Meeting Minutes — February 14, 2018 c. Consideration of approving payment of bills d. Consideration of Escrow Agreement between Michael W. Froslie and Kathleen A Froslie and City of Monticello EDA e. Consideration of Lease and Property Management Agreement with Michael and Kathleen Froslie f. Consideration of Northland Securities, Inc. contract for preparation of Affordable Housing TIF District materials and Plan Regular Agenda 5. Consideration of Purchase Agreement for 112 West River Street 6. Consideration of Downtown Business Improvement Program Group Meeting Findings 7. Consideration of Downtown Building Fagade Design Template Proposal 8. Consideration of Concept Review of Multi -family "Affordable Housing TIF" Proposal 9. Director's Report 10. Adjourn MINUTES REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, February 14th, 2018 — 6:00 p.m. Mississippi Room, Monticello Community Center Commissioners Present: Bill Tapper, Steve Johnson, Tracy Hinz, Jon Morphew, 011ie Koropchak-White, and Jim Davidson Commissioners Absent: Lloyd Hilgart Staff Present: Angela Schumann, Jim Thares, and Wayne Oberg 1. Call to Order. Bill Tapper called the regular meeting of the EDA to order at 6 PM. 2. Roll Call 6:00 p.m. 3. Annual Business Meeting a. Consideration to elect EDA Officers TRACY HINZ MOVED TO ELECT 2018 OFFICERS: STEVE JOHNSON AS PRESIDENT, BILL TAPPER AS VICE PRESIDENT, AND JON MORPHEW AS TREASURER. JIM DAVIDSON SECONDED THE MOTION. MOTION CARRIED, 6-0. b. Consideration to review EDA Bvlaws and Enabling Resolution There was questions about Article IV —Executive Director, of the Bylaws. Jim Thares noted that the change was accepted at the previous year's meeting. He would work with the City Clerk to ensure the final version would be correct. c. Consideration of EDA fund balance information Wayne Oberg provided an overview of the EDA fund balance. Bill Tapper commented on the amount of expenditures for consulting services. It was noted that the least restrictive amount of money the EDA could spend is $2,051,000. 4. Consideration of additional agenda items Bill Tapper asked to add 7.5 and 7.6 of the agenda were added by staff. JIM DAVIDSON MOVED TO ACCEPT THE ADDITION OF ITEM 7.5 AND 7.6. OLLIE KOROPCHAK-WHITE SECONDED THE MOTION. MOTION CARRIED, 6- 0. 5. Consent Agenda BILL TAPPER MOVED TO APPROVE THE CONSENT AGENDA. JIM DAVIDSON SECONDED THE MOTION. MOTION CARRIED, 6-0. a. Consideration of approving Regular Meeting Minutes — January 101, 2018 Recommendation: Approve regular meeting minutes — January 10th, 2018. b. Consideration of approving Special Workshop Meeting Minutes — January 10th, 2018 Recommendation: Approve special workshop meeting minutes — January 10th, 2018. c. Consideration of approving payment of bills Recommendation: Approve payment of bills through January, 2018. d. Consideration of 2018 Farm Lease with Tom and/or Matt Spike at $1,100 for 13.6 acres Recommendation: Authorize the EDA Executive Director and President to execute the Farm Lease agreement for Outlot F, Otter Creek Crossing as drafted. Regular Agenda 6. Consideration of Purchase Agreement for 103 Pine Street Jim Thares explained that the address covers three parcels (approximately totally 22,687 square feet) and is a core block located in the Small Area Study. Thares stated the market value of the property per Wright County is $430,800. The seller has the property listed with KW Commercial Midwest for $685,000 and the EDA put forward an offer $517,200 global offer to also include relocation costs for residential and commercial tenants in addition. The site is intended for mixed use development. There is no development proposed at this point. The property would be held for future development proposals. Thares mentioned in March the Planning Commission would consider consistency of the purchase with the Monticello Comprehensive Plan. Bill Tapper asked about the closing. Thares stated the closing would be proposed for March 15th with a simultaneous closing of the home the seller is purchasing. Thares also added that the seller is not asking for earnest money. The sellers and the tenants would be allowed to occupy the space until June 30th Tracy Hinz asked if the EDA would be landlords after the signed purchase agreement. Thares confirmed, but added that no rent would be collected. At closing, a property management agreement executed with the seller to take care of the property as they have been. The escrow amount the City requested would be used to cover legal fees if tenants are not out of the building by June 30th or to pay for any unexpected costs (e.g. unpaid utility bills). The seller will also grant the buyer access to the property to conduct environmental tests prior to the closing date. There is a lot of personal property on the site and would need to be removed prior to June 30th 2 Steve Johnson asked if relocation activities have been initiated with tenants in the building. Thares stated that the consultant — WSB — has asked for a list of tenants. A discussion regarding eligibility would be set up. BILL TAPPER MOVED TO APPROVE RESOLUTION 2018-03 AUTHORIZING THE PURCHASE OF THE COMMERCIAL PROPERTY LOCATED AT 103 PINE STREET. JIM DAVIDSON SECONDED THE MOTION. Tracy Hinz asked what would happen if a developer was interested in developing the land prior to June 30th. Angela Schumann responded that even if a developer expressed interest immediately that they would need to complete environmental review and apply for land use applications. MOTION CARRIED, 5-0-1 WITH STEVE JOHNSON ABSTAINING. 7. Consideration of CMHP Redevelopment and Rehab Feasibility Analysis Proposal Jim Thares reminded the EDA of a special meeting with CMHP that was held in January. Thares stated the CMHP outlined a possible scope of work (attached to the staff report). City staff would work with CMHP to provide data and conduct surveys. The total cost of the services would be $1,000. Steve Johnson asked what the specific goal of the service. Thares stated it was to look at the core grid of Monticello. The goal would be to address building code issues and improve the quality of the homes. This service would be a rehabilitation program only and would not include affordable housing. BILL TAPPER MOVED TO AUTHORIZE ENTERING INTO A FEASIBILITY ANALYSIS SERVICES CONTRACT WITH CMHP TO CONDUCT AN ANALYSIS OF THE MERITS OF ESTABLISHING A HOUSING AND COMMERCIAL REDEVELOPMENT -REHABILITATION PROGRAM IN TARGETED AREAS OF THE CITY. JON MORPHEW SECONDED THE MOTION. Steve Johnson asked if staff could also research CMHP's services for affordable housing, while entering the proposed contract. Angela Schumann stated deep in the scope that CMHP provide evaluation of redevelopment potential over rehabilitation. In building a relationship with CMHP, it will help the EDA to understand their strength as a partner for a redevelopment project. Motion carried, 6-0. 7.5 Consideration of Authorizing Letter of Intent (LOI) to acquire 112 West River Street Jim Thares explained that the latest draft of the Letter of Intent was provided in the staff report. He explained that the parcel is located in the redevelopment area of Block 52. It is a small lot, with access to River Street. Thares said that the seller authorized an appraisal of their property, which the EDA completed and paid for. The seller acquired the property in 2006 for $250,000. The current offer by the EDA is $370,000 with a global settlement with all relocation expenses included. The goal of the property is to redevelop the area with entertainment, restaurant, or mixed uses. Tracy Hinz stated that the seller has a year to vacate the property. Thares confirmed that they would have until March 31St, 2019. The closing would occur on April 1 st, 2018. Hinz also asked what would happen if a developer was ready to develop the site prior to the end of March, 2019. Thares stated the purchase agreement states the seller's need to vacate by March 31St, 2019, but that environmental review and land use application process would need to occur prior. Angela Schumann stated that if properties would be combined, they parcels would need to platted. Schumann also added that if the EDA felt strongly they could request a notification timeline. Hinz recommended adding language that if a developer was ready to develop, that the timeline for the seller to vacate would be sooner. TRACY HINZ MOVED TO APPROVE RESOLUTION 2018-04 AUTHORIZING ENTERING INTO THE LOI FOR THE PURCHASE OF COMMERCIAL PROPERTY LOCATED AT 112 WEST RIVER STREET. JIM DAVIDSON SECONDED THE MOTION. MOTION CARRIED, 5-0-1 WITH STEVE JOHNSON ABSTAINING. 7.6 Consideration of Authorizing Quotes for Phase I Environmental Studies at 103 Pine Street and 112 West River Street Jim Thares stated that it was important for the EDA to understand environmental issues. There is money in the EDA general fund budget in the redevelopment activities line item. Bill Tapper moved to authorize solicitation of quotes and further authorize staff to enter into a contract for service with the entity that provides the lowest, most economical quote for service in completing a Phase I for property located at 103 Pine Street and 112 West River Street. 011ie Koropchak-White seconded the motion. Jon Morphew asked how many quotes would be anticipated. Thares responded three quotes. Steve Johnson stated that the EDA would give authorization to staff to complete the review if the cost was between $2,600-$4,200. The final quote would not need to be approved by the EDA at an upcoming meeting. 2 8. Director's Report Jim Thares provided the Economic Development Director's Report. Angela Schumann stated that the EDA would be sent via email the final version of the sign with land for sale in Otter Creek Business Park. Thares also explained that staff met with downtown business and property owners. A lot of feedback was received regarding grant or loan fund programs to renovate their buildings. Another meeting would be held on February 26tH Thares reviewed the prospect list with the EDA. 9. Adiourn BILL TAPPER MOVED TO ADJOURN THE MEETING AT 7:07 P.M. OLLIE KOROPCHAK-WHITE SECONDED THE MOTION. MOTION CARRIED, 6-0. Recorder: Jacob Thunander Approved: March 14th, 2018 Attest: Jim Thares, Economic Development Director 5 MINUTES WORKSHOP MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, February 14th, 2018 — 5:00 p.m. Mississippi Room, Monticello Community Center Commissioners Present: Bill Tapper, Steve Johnson, Tracy Hinz, Jon Morphew, 011ie Koropchak-White, and Jim Davidson Commissioners Absent: Lloyd Hilgart Staff Present: Angela Schumann and Jim Thares Call to Order. Bill Tapper called the workshop meeting of the EDA to order at 5:00 p.m. 2. Roll Call 3. Uniform Relocation Assistance and Real Property Acquisition Act Overview (Jon Morphew) Jon Morphew answered baseline questions regarding eligibility for relocation benefits and benefits tenants, homeowners, and business owners are entitled to receive. Morphew comes from a law background dealing with relocation. Morphew explained that once a written offer from the City is received for property, a notice for eligibility for relocation should be submitted to the owner and tenants (if applicable). No payments are required until displacement occurs. Discussion pursued regarding the Uniform Relocation Assistance and Real Property Acquisition Act. 4. Adiourn STEVE JOHNSON ADJOURNED THE MEETING AT 5:57 P.M. OLLIE KOROPCHAK-WHITE SECONDED THE MOTION. MOTION CARRIED, 6-0. Recorder: Jacob Thunander Approved: March 14th, 2018 Attest: Jim Thares, Economic Development Director EDA Agenda: 03/14/18 4c. Consideration of approving payment of bills (JT) A. REFERENCE AND BACKGROUND: Accounts Payable summary statements listing bills submitted during the previous month are included for review. B. ALTERNATIVE ACTIONS: 1. Motion to approve payment of bills through February 2018. 2. Motion to approve payment of bills through February 2018 with changes as directed by the EDA. C. STAFF RECOMMENDATION: Staff recommends approval of Alternative #1. D. SUPPORTING DATA: A. Accounts Payable Summary Statements American Land Title Association ALTA Settlement Staitement - Borrower/Buyer Adopted 05-01-2015 Preferred Titre, Inc. ALTA Universal ID 113 Welk Broadway, PO Box 727 Monticello, MN 55362 File No./Esrrow No.: 0100;-18 Print Date & Time: February 5, 2018 at 11:32 -AM Officer/Escrow Officer: KeIlyErir-kSon. Settlement Location 113 West Broadway Monticello, MN 55362 Property Address: 255 East Broadway Monticello, MN 5536 Borrower: City or Montrcelio Economic Development Authority Seller: Duren Gossett and Ernes K. Gossett Lender: Settlement Date; February 16, 2018 Disbursement Date: February 16, 2016 Description Borrower/ Buyer Financier Debit Credit Sale Pace of Property Proralbaes /Ad' ustments County Taxes 01/01/18 to 02/16/113 Charges to Other Loam Charger, FIMPiunds True Chir es & Escrow I Settlement Charges Title - Owner's Title Insurance to Preferred Title, Inc. Coverage. $ 106,000,40 Prerrdum: 3,K50 Tilde - AbWaCbng Fee Title - Assessment Search Fee 2 Tide - One -Half Buyer Closing Fee Title - Exam Fee to preferred Tilier Irx. tv preferred Tide, Inc. to Preferred Tide, Inc. to Preferred Tike, Inc. Copyright 2015 American (arid Title Association Al I rights reserved $ 106,OOQ.OD $ 181.73 loan $ 344,50 $ 375,00 70,00 S125.00 $ 150.00 (41061-18,PFDIO l H 1.1$V16) Printed or, 42)05116 at 11; 32 -AM ALTA Set tlemen I Statement So rrowe ri B uye r - Continued Debo Creeit Title - Name Search Fee tcp Preferred TWE!, Int. $ 30.00 Title - Rer-ording 5er4oe Fee La Preferred Title, Inc. $ 30.00 C�o,�ernment Ru�ordi and Transfer Cha s Recording Fess to Wright County i�eaarder � �6,OU Conser�rdtlor� Fee to bl+rigt7t C.ounly Treasurer $ 5.00 Pavvft Miscellaneous One -Half Seller Chasing Fee to Edina Realty Title $ 175,UG sugars s 107,350.50 $ 181.73 Balance Due FROM 107,15$,77 TOTALS � 107, 350, 50 S 107, 3Sti.50 Ackuowiedgemant W w have carefully reviewed the ALTA Settlement Stat ernenf gird IInd it 14 Ike a true and accurate statement of all mceipls and disburs&merits rnado qri my account of by me in INs transactiorr and Further certdy that I hgviB received a copy of the ALTA Sell Nernant Stalement. Vyoil adthorhze Preferrsd T Rle, Inc. to cause the funds to be di�Dursed in accordance witrr this statement. City of Mori cello EaanamiC Development Authority BY: James Thares, Exeautive Director Kelly Erickson, Es arow OfFaer Copyright 2015 A rnerlcan Land Title Association (01001-18,PPWI001-18116) All rights reserved Printed 9m 42#05118 at 11.32 -ASM Julie Cheney From: Jim Thares Sent: Monday, February 5, 2018 4:38 P To: Wayne Oberg; Sarah Rathlisberger, Julie Cheney Subject: RE- Check for Property Acquisition - 255 East Broadway That is correct on the amount! From: Wayne Oberg Sent: Monday, February 05, 2018 4:19 PM To: Jim Thares; Sarah Rathlisberger; Julie Cheney Subject: RE; Check for Property Acquisition - 255 East Broadway JT: It is coded land held for resale. After reading through the docs it looks like the Check amount is 107,350.50, I5 that correct? Thank you! Wayne Frarn., Jim Thares. Sent: Monday, February 5, 2018 3;58 P To: Sarah Rathli5berger <Sarah. Rathlisber er ci.monticello.rnn.us>; Julie Cheney <Julie,Cheney.@ci.rnonticciIJo.mn_us>; Wayne Oberg <Wa ne_Ober ci,monticello.mn.us> — -- Subject: Check for Property Acquisition - 255 East Broadway Sa rah, Julie and Wayne, I attached the fully signed Purchase Agreement, the EDA Resolution approving the purchase a n the settlement statement. Is there anything else that you will need with this? The funding for this is the EDA Genera I Fund. I am not sure of the coding_ Maybe Sarah can review this with rne. Let me know. Thank you. IEDA REE OLUT[ON NO. 2011-2 RESOLUTION APPROVING PURCHASE AGREEMENT FOR THE ACQUISITION OF 255 FAST BROADWAY STREET BY THE CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY BE IT RESOLVED BY the Board of Commissioners ("Board") of the City of Mollticel]o Ec;onornic Development authority (the "Authority") as follows, Section 1- Recitals. I.01. The Authority and Owen Crossett and Erika k- (;Osseo (109ether. the -S edler- } dc=sirc to enter into a purchase aureement (tile "Purchase R�reetnent') pursuant to which the Authority will ac:qui1'e c i 1 property located at 255 East Broad a tract (lite ` I'rnpel#v"} ]l] the downtown area (}f the City 0r kJoiltice Ilo (the -C i ty") li•orn the Seller for economic redevelopment purposes relaleci to the rc Fitali zaticrn of the dnunto n t'iTea, The Pi%speity is described in Exhibit A attached hereto. 1. ?- f ursuatlt to the Purchase AgLi men t, the Authoiity will purchase the Property horn (lieellcsr for a total purchase price of 106.000 Flus relatcxl closing cosrs. 1.03. The Awhority Find that acquisIIion of the Pnipevy col7fonns to the City of Monticello Redevelopment Priorities aril policies, as approved by the City and Authority, and �vjll favi] itale the cc:onomic rMevc:1opiuei,r and revita I Izat iol I of tilt dowjjto�vn area of the City. 1-04. Pursuant to Minnesota Statutes. Section 462.156, �;ubd- 2. the f lalining C'ommi&qion of the City w i I i 1110-t on February 6, 2018, to rn,icw the pruposW ac•.cluisitioll and its a)nf0ri7tlt to the City's ComprLhensive Plun, Section 2, Purchase A green]ent A ]ilii -oved- 2.01- The Authority hereby approves the Purchase Agreement in substantially the tort3l Presented to the Autltcxrity, subject to the Planning Commission's finding that the acquisition of the I'voperty conforms to the Comprehensive flan and to modifications that do not alter this substance of the transaction and that are approved by the President and Executive I)ii�cctor. providW that exertitiLMI of (11C Purchase Agreement by those officials shall be conclusive evidelice of their approval. 2.02. Authority staff and of ieials are authorized to take all actions necessary to perform the Atithoritv's obi lions. under the Purchase AL7eement as a whole, including without Ii11iitatioit execution of any doctonents to which the Authority is a Parry referenced in or atta6ed to the Purchase Agreement, and a"y deed or other documents necessary to acquire the Property ftern tate Seller, al] as described irr the Purchase Agreement - 1 Error! tInkua5s 13 tineu1o1coi oroperlr MIMIC, Approved this 10th day of January, 3018, by tale Boaj7d of C'c)n31]11SSIti11i�r5 cif the City ()f Monticello Economic Development Authority, President ATTEST; Dectorcc r Ij EXHIBIT'A PROPERTY Lot Tel, (I(}), in Bieck B ol` I'le TOwnsiti; (no%v known as City) of Mottliceflo and that jxgrt itdjoijting skiid Loi Ten (10) de_wcribed as follows, l3egiitirning at the Soutlrej�st corner of said Lot Ten (I ft. tlrcace Fastcriy along (lie Northerly line of Broadway Stree=t to a point distant 57,0(} feet Westerly of tlle 50tIrh%wC-,.l cairiir'r of Lot One (1 j, in i3lock B 0' the '1'owilsite of 1LoweF MaillicQllo; cl�et�ce No»herly. p��ryr�e! witi� t��e 1k,'esterly line of said ! ntjrr (1j 0ut, a �iistauce of 165-00 lee[ to the lyerly line of Lot Eleven (l I } of said 81c k B of the 7'ownFilc of Moilticeiin; tlyence )X Le;terly a lung aa id Southerly line iu the NorthCast corner of said ! -ot Ten (10); thence Sot,11jerly alonLz t]le Eas lcrly lineof mid Lot Ten (10) to the point Ofbeginning, according to tile Pial and ski'Vey INreofon iile and of record iii the ol7ice of the C'oktr,ty Recorder itk and fur Wright County,Minnesota- ANIS LO 1-01 (10) til 131ack B of MoriIicelJo and tlynsc parts of Lot 140 (2). 13 lock B, Lower Mot) ticel10 and Palm Strec[ o]' MoIllicelin according to the record plat thereof lying Northwesterly ()j,,L fine drawn southwesterly li'c�rn a poinl an xhe tr()rtll&"stcrly line of said Lot Two (2) distant 57,00 feet northIvesterly fnim the IIIDNt easterly G{triy y t3!'said l.crt Two (2) to ;� 110i ill ail the Nor[ hca tcrlx lute Of Brc,adxv;�y street nt`said Monticello distad[ 57.{1C1 feet nartilwesteriy from tltc mast Soulllcrly career ofsaid Let Two (2), Stil)j=l PR)Pt:rty Addre�s; 255 EL AroadWfly Street Mowicello. MN 55362 Ern) r! khtkttoutk Jloeun5c11 proj)friy mikile. Julie Chene From: Jim Thares Sent: Tuesday, February 6, 2018 12:52 P To: Julie Cheney, Sarah Rathli5berger; Wayne Oberg Subject: Acquisition of PFoperty - 103 Pine Street - Earnest Money Deposit 110. 01U10 Attachments; Letter of fluent - Full} Signed.pdf JuIle, Sara#i and Wayne, attached is the f u I I v signed Letter of Ira#ent for the EDA to aCgUire 103 Pith Streel. Please process ii check payable to KaEthteen ani3 Michael Froslle in the am0u 11 jjf 510,00D. We don't (rave a iresoNtron signed Off yet because oris IS going to lige FDA on February 14rh, 3038, The sigtring of the PA would conceivably 0 -.cuF on februafy 15"' with t)e Earnest Money oepasit provided to -geller at that time (see Section P). please see me Witt, any questions. I believe this is coded the same as 255 East Broadway. ��r-5- OW60, C4 CITY [)F -ti ice i Ecor�a is D velop r t l ority January 30, 2018 Kathleen A. Froslie and Mike Froslie 103 Pirre Street Monticello, MN 55362 RE: tetter of Intent Dear Kathleen and Mike; The City of Monticello Economic Development Authoriky (EDA) hereby makes an offer to Purchase your commercial, multi -tenant property located at 103 Pine Street, Monticello, MN (Property)- The purpose of this Wtter of Intent (Letter) is to establish basic terms and conditions of the proposed purchase of the Property, by the EDA. The terms in this Letter reflect a mutual understanding to effect a property purchase/safe, although it is further understood that the terms and conditions will not become binding until a Purchase Agreement generally consistent with this offer is executed by the EDA as Buyer and as you as Seller, as contemplated below - 1 - elow-1. Description of Property; The Property is looted at 103 pine Street, Monticello, MN and is comprised of three tax parcels with the following PID numbers; 15SD1005211O, 155010052120, 155010052102 Included in the sale of the Property are the building (Real Estate) located on the Property and all permanent fixtures and property that integrally belongs to or is part of the Real Es#ate, whether attached of detached, such as light fixtures, shades, rods, blinds, awnings, windows, storm doors, screens, plumbing fiuturesr boilers, water heater, water softener, air-tondltioning equipment, built- in items, outside television antenna, fencing gates and landscaping. 2. Purchase Price; Closing Date: The EDA offers a Purchase Price, representing all sums payable for Real Estate and Relocation (both comrnerciaVibusiness items and personallre5idential/household items, of $517,200, to be paid as follows: $10,000 to be paid as earnest money deposit at the time of Purchase Agreement execution and tete balance of $507,200 due at closing, Closing OR the conveyance of the Property will occur on or prior to March 15, 2D18, 3. Closing Costs; At Closing, Seller will pay Prorated real property taxes due through the date of Closing, any special assessments levied or pending against the Property as of the date of Closing and SelIefs legal fees, if any. Buyer will pay all recording fees, state deed tax or other transfer tax in connection with recording the deed to be delivered by the Seller, the cost of any survey of the Property, the fees of any title commitment and premiums required for issuance of a tittle insurance policy, fees for any environmental assessments or other tests ordered by the Buyer, 515771x2 MN] MN325-35 MontiCeRo Economic Development Authority closiAg fees charged by the title cornpany engaged by the parties in connection with the Purchase Agreement, and Suyers legal and accounting fees. 4. WWro on of heal Estate Payment Amount and Refocation Payment Amount: The &-- "err at Sellers sole discretion, will determine the portions of the Purchase Price allocable to the Real Estate and to Relocation, provided that the Seller agrees that the total Purchase Price fuily compensates the Seller for any Relocatior, payable to the Seller. 5. Passession I138te/Seller Vacate Premises; Seller will vacate the property within 135 days from date of Closing, but no later than July 31, 2018 (Vacation Date) Buyer will take full possession of the Property on August 1, 2018, 6. Waiver of Rent Payments: Seller shall be authorized to oe:rupy the Property and coriduct regular business activitles until the earlier of 135 days after the Closing or the Vacation Date. Buyer waive 8 n right to receive rental payments during this period_ 7. Existing Lease Agreements and Property Managernent Responsibilities; Through the Vacation Date, Seller shall retain the rights and responsibilities derived from all tenant leases as well as all property management responsibilities as provided in a Property Managernent/NiainteRance Agreement to be executed by the Sealer and Buyer in conjunction with Closing, dent derived from existing leases after the date of Closing shall be collected and retained by Seller as property manager. Buyer wilt not guarantee tenant rent payments nor backstop any unpaid rent nor engage In a ny rent collection efforts. Seller shall not enter into any new or renewed leases with existing or new tenants effective upon the execution of the Purchase Agreernunt, At g, r 1 srirn nrrtr:,...Jw al ... b[Ilinv thn f I.,r;n ia�� fly K-rFGr�R�ba"ti4rr tkw -9aW- Buyer shall follow Uniform Relocation Act (URA) and Minnesota Relocation Statutes regarding provision of Notrces to Vacate to all tenants. 8. Property Jnspectian5: After final acceptance of a binding Nrchase Agreement, Buyer may have the Real Estate inspected by a person/firm of Ruye�S Ehoice to determine if there are environrroentaI issues a hazards or building contaminants_ Seller understands the need to allow the inspections to occur on the Property and wrlI cooperate in this endeavor_ The Buyer may terminate the PurchaSe Agreement at its sole discretion if environmental issues or contaminants are discovered. 9, Personal Property: Personal property is not included in the prrrchasefsale and is to be removed by the Seller prior to the Vacation Date. 10, Tale Review: Seller will provide Buyer with existing Title information upon execution of a Purchase Agreement. Buyer will have a reasonable period of time to inspect the state of Title to Page 2 of 3 535771-V2 Al N] MN325-35 ' C IT OF -' Mofiii eeREconomic Development Authority the Property, and will provide written objections to Title if necessary. If such objections are not cured, Buyer may terminate the Purchase Agreement at its sole discretion. 11. Lease Agreements: Seller will provide all existing lease Agreements and rQntact information of tenants to Buyer upon execution of Purchase Agreement. 12. Standard Pravisiorts: The Purchase Agreement will include standard pri3visia05 that a re customary under State and local law. 13. Buyer and Seller Commitment and Understanding of Responsibilities, This Letter does not and is not intended to, contractually bind the parties, and is only an expression of the basic terms and conditions to be incorpordted into a binding Purchase Agreement- Furthermore, this Letter is an outline of key terms acrd conditions but is not all inclusive of the essential terms and conditions of any potential Purchase Agreement. The parties shail not be contractually bound unless and until they enter into a formal, written Purchase Agreementr which must be in a form and content satisfactory to each #arty. The Buyer and Seller hereby agree in good Faith, to diligently work toward the completion of a written, formai Purchase Agreernent that expresses the terms and conditions herein mutually agreed upon. 14. Formal Approval Required by Buyer. The purchase offer is subject to formal approval by the gave rning body of Che Buyer and execution of a Purchase Agreement- ]! 5. mutual Understar~dings: The above Letter of Intent reflects the mutual understandings and sets Forth the basis far proceeding to negotiate a written, formal Purchase Agreement as Qutlined above. JAL�-- DATE: Seller; LZ DATE= DATE:— 30 Page 3 of 3 51577 1 r2 Mlwl hihl325-35 League of Minnesota Cities Insurance Trust��11 Group Self -Insured Workers' Compensation Plan 145 University Avenue West St. Paul, MN 55103-2044 Phone (651)215-4173 Statement of Premium Audit Adjustment 1. The "City" Agreement No.: 0200052331 MONTICELLO, CITY OF Agreement Period From: 10/10/2016 505 WALNUT STREET, SUITE #1 To: 10/10/2017 MONTICELLO MN 55362-8822 Rates Audited Annual Per $100 of Codc Audited Remuneration Remuneration No. Classification Premium SEE ATTACHED SCHEDULE FOR DETAILS G�I J A ^! 2018 Manual Premium 176273. Experience Modification .93 12339. Standard Premium 163934, Deductible Credit 5.5% 9016. Premium Discount 16633. Net Acutual Premium 138285. Less Deposit Premium 1?97F 1 Balance Due LMC1T 8524. The foregoing statement is for the year end adjustment to your workers' compensation deposit premium. It was prepared after an audit of your payroll records and a final determination of your experience modification factor for the period indicated above. H the final balance shown is due to your city, a check will be issued separately. If the final balance is due to the LMCIT, please forward your remittance, payable to the LMC Insurance Trust, to the administrator at the address indicated above. Agent: 170.48 01505 CITY OF MONTICELLO 505 WALNUT ST STE 1 MONTICELLO MN 55362-8822 0�4_ - 1/1112018 LM4460 (8199)(Rev.01/10) INVOICE #: 34761 LEAGUE OF MN CITIES INSURANCE TRUST (0049) PREMIUM NOTICE C/O BERKLEY RISK ADMIN.CO.,LLC Invoice Date: 1/10/18 222 SOUTH NINTH STREET Due Date: 02/09/18 SUITE 2700 MINNEAPOLIS MN 55402-3332 612-766-3000 FAX: 612-766-3281 Bill To, MONTICELLO, CITY OF 505 WALNUT STREET, SUITE #1 MONTICELLO MN 55362-8822 Type of Coverage: WORKERS COMPENSATION Convenant Number 0200052331 Covered Party: MONTICELLO, CITY OF Payment Plan Selected: ANNUAL PAY PLAN DUE DATE AMOUNT DUE END:DAIE DESCRIPTION 2/09/18 8,524.00 10/10/17 FINAL AUDIT Total: $8,524.00 Payment/Adjustment Applied: $.00 Total: $8,524.00 Agent 01505 CITY OF MONTICELLO 505 WALNUT ST STE 1 MONTICELLO MN 55362-8822 Coverage Period: 10/10/16 To 10/10/17 ------------------------------ PLEASE RETURN THIS PORTION WITH YOUR CHECK MADE PAYABLE TO• LEAGUE OF MN CITIES INSURANCE TRUST (0049) INVOICE #: 34761 C/O BERKLEY RISK ADMIN.CO.,LLC P.O. BOX 581517 MINNEAPOLIS MN 55458-151 612-766-3000 FAX: 612-766-3281 Type of Coverage: WORKERS COMPENSATION Covenant Number: 0200052331 DUE DATE: 02/09/18 Coverage Period: 10/10/16 To 10/10/17 UNPAID BALANCE: 8,524.00 Covered Party: MONTICELLO, CITY OF AMOUNT DUE: 8,524.00 League of Minnesota Cities Insurance Trust Group Self -Insured Workers' Compensation Plan 145 University Avenue West St. Paul, MN 55103-2044 (651)215-4173 The "City" Agreement No.: 0200052331 Agreement Period From: 10/10/2016 MONTICELLO, CITY OF To: 10/10/2017 505 WALNUT STREET, SUITE #1 MONTICELLO MN 55362-8822 CONTINUATION SCHEDULE FOR INFORMATION PAGE REMUNERATION RATE CODE DESCRIPTION PREM. 473214. 9.20 5506 STREET CONSTRUCTION 435.36, 5237. 5.58 7380 DRIVERS & HELPERS 292. 339155. 4.21 7520 WATERWORKS 14278. POP 18899. 185.91 7718 FIREFIGHTERS(VOL)NON SMOKING 35135. 445710. 4.17 8017 OFF SALE LIQUOR STORE 18586, 62506. 3.69 8227 CITY SHOP & YARD 2306. 1288486. .69 8810 CLERICAL OFFICE EMPLOYEES NOC 8891. 30511. 4.98 9015 BUILDINGS -OPER BY OWNER 1519. 6842. 8.78 9016 SKATING RINK OPERATION 601. 716437. 2.66 9063 COMM. CENTERS -ALL EES & CLERIC 19057. 432820. 5.01 9102 PARKS 21684. 150. 2.46 9182 CITY ARENA -OPERATIONS 4. 278666. .52 9410 MUNICIPAL EMPLOYEES 1449. 18200. .40 9411 ELECTED OR APPOINTED OFFICIALS 73. 177960, 4.98 9015 SWIMMING POOL OR BEACH OPERATI 8862. 4294793. Manual Premium 176273 1/11/2018 LM4690 (8199) 2018 Budget Adopted - EXPENDITURES Workers Compensation Distribution ACCOUNT NUMBER COUNCIL PavahlP 101-41110-415100 101-41310-415100 101-41410-415100 101-41520-415100 101-41800-415100 101-41910-415100 101-41920-415100 101-41940-415100 101-42200-415100 101-42400-415100 101-43110-415100 101-43111-415100 101-43115-415100 101-43120-415100 10143125-415100 101-43127-415100 101-43130-415100 101-43140-415100 101-45201-415100 10145501415100 10146102415100 10146500-415100 101-49240-415100 Workers Com Workers Com Workers Com Workers Com Workers Com Workers Com Workers Com Workers Comp( Workers Comp( Workers Comp( Workers Comp( 1Workers Comp( Workers Comp( Workers Comp( Workers Comp( _ Workers Comp( Workers Camp( Workers Comp( Workers Comp( Workers Comp( Workers Comp( Fund 101 Total nsation insurance nsation Insurance nsation Insurance nsation Insurance nsation Insurance nsation Insurance nsation Insurance nsation Insurance nsation Insurance nsation Insurance nsation Insurance nsation Insurance nsation Insurance nsation Insurance nsation Insurance nsation Insurance nsation Insurance nsation Insurance nsation Insurance nsation Insurance nsation Insurance nsation Insurance nsation Insurance 98.00 28.00 111.00 29.00 41.00 873.00 106.00 295.00 316.00 1,611.00 474.00 163.00 77.00 5,117.00 21346301-415100 Workers Compensation Insurance I 33.00 1217-41990-415100 Workers Compensation Insurance l 101.00 226-45122-415100 226-45124-415100 226-45126-415100 601-49440-415100 601-49441-415100 60249490-415100 60249491-415100 609-49754-415100 Workers Compe Workers Compe Workers Compe Fund 226 Total Workers Comp( Workers Comp( Fund 601 Total Workers Comp( Workers Com Fund 602 Total I's Insurance Insurance Insurance 557.00 367.00 593.00 1.517.00 isation Insurance isation Insurance isation Insurance isation Insurance nsation Insurance i 8 505.00 21.00 526.00 517.00 21.00 538.00 692.00 Page: 3 KL,nnedy & Graven, Chartered 200 South Sixth Street, Suite 470 Minneapwlis. MN 55402 Monticello ZDA December 31, 2017 MN325-00037 255 East Broadway St Through December 31, 2017 For All Legal Services As Feliows: Hours 1212$12017 MNI Review termsheet and que5#ion5 to J Thares regarding 0.70 new PA For 255 E_ 6r0adway. Total Services; Total Services and Disbursements: Amount 133.00 133.00 133.00 Julie Cheney From: Jim Tbares Sent: Friday, January 26, 2018 9=43 A To: Julie Cheney Subject: RE: Kennedy & Graven Invoices (4) Hi June, all good to go with coding provided; please see below. From: Julie Cheney Sent: Thursday, January 25, 2018 10:46 AM To: dim Thares Subject: Kennedy & Graven Invoices (4) Jim Attached are the following invoices from Kennedy & Graven: Ifiv# M N 190-00101- General E DA Matters - $551.40 Okay; Cade to- 213-46301430400 Inv-# M325-00034 -220 W Broadway -$63.96 Nay, Code1a_ 213-46301-43GIOG Inv# MN325.00036 - 224 East 4"' Street - $880.50 Okav, Code to: 21-3 +3{11-43040 Inv# N325-00037 - 255 East Broadway St - $133-00 Okay; Code to; 213-46301-430400 Okay to pay? Please provide coding for each. Thanks , Finance Assistant City of Monticello 763-271-3205 Julie.Chenev c+. moo ticeIIo,mn.u.5 AP g.monticello-Mrl.u5 cirY n' r' e H 0 Email correspcndence to and frvm the City of Monticeffo government offices is subject to the A+iinniosnta 6pvernrnent Data Pmctices Act amd may be dEsciosed to third parties- Page; 2 Kennedy & G raven, Chartered 200 South Sixth Street, Suite 470 Minneapolis, MN 55402 Monticello EDA December 31, 2017 MN825-00036 224 East 4th Street Through December 31, 2017 For All Leg aI Services As Fallows Hours 12/2612017 MNI Phone conversa#ion with J Thares regarding new PA for 070 224 East 4th: review germs, office conference with D Flock I i tz 1212712017 CBR Review ern aiis, interoffice f onfererice regarding probate; 0.50 review website regarding taxes t2f27=17 MN1 Monticello PA - correspondence with seller's counsel, 1.20 off -ice conference with D Rockltz 12/2812017 Mill Draft PA for 224 W. 4th Street for review by seller's 2.40 counsel. V Total Services: 5 Total Services and Disbursements- $ Amount 133.00 63.50 228. p0 456.00 880,50 880.50 Julie Cheney From: Jim Thares Sent: Friday, January 26r 2018 9:43 AM To: Julie Cheney Subject- RE; Kennedy 8t Graven Invoices {4) Hi Julie, all good to go with coding pJ ovided; please see below - From: Julie Cheney Sent: Thursday, January 25, 2018 10;46 AM To: Jim Thares Subject: Kennedy & Graven Invoices (4) I� Attached are the following invoices from Kennedy & Gravew InvW MN190-0D101 - General EDA Matters - $551-00 Okay; Code. to. 213-46301 -4 30400 Inv# M325-00034 - 220 W 9raadway - $63.96 Okay Code to, 21.3.46301-430400 Inv# MN325-00036 - 220 East 4" Street - S880.50 Okay; Code to-. 213 4630)1-430#00 Inv#MN325-00037-255 East Broadway St -$133,0D Okay; Code to. 213-46301-430400 Okay to pay? Please provide coding for each. Thanks, pr.Jfr.e Cheneq Finance Assistant City of Mont ice IIo 763-271-3205 JuIie- henev @ci-mon ticel lo. mn,us AP @ Ci, mon ticel lo,mn,us CJTY []r �nticeHo Ema11 carresporrdence to and from the ity of Mont ceflo government offices is subject to the Minnesota J avernment Data Practices Act and may be disclosed to third parties- Page; 1 Kennedy & Graven, Chartered 200 South Sixth Street, Sprite 470 Minneapolis, MN 55402 Monticello FDA December 31, 2017 MN325-00434 220 W. Broadway Through December 31, 2017 For At[ Legal Services As Follows: Hours 112126f2017 CBR Interoffice conference, emails regarding escrow; make 0.50 payment to BuIIseye Management Co. For All Disbursements As Follows: Postage Total Services. Total Disbursements' S Amount 63.50 63.50 0.46 0,46 ,TwTotal Services anti Disbursements; 63.96 ,x _ r �� ` �f Julie Cheney From: Jim Thares Sent: Friday, January 26, 2018 9.43 AM To: Julie Cheney Subject: RE: Kennedy & Graven Invoices (4) FII Julie, all gaud to go with catling provided, please see below, From: Julie Cheney Sent: Thursday, January 25, 2018 10:46 AM To: Jim Thares Subject: Kennedy & Graven Invoices (4) Jim Attached are the fallowing invoices frorn Kennedy & Graven: ifivt MN190.00101 —General E)A Matters -$551,00 Okay, Code to- 213.46301-43+ 0 Inv# M 325-OD034 — 220 Vel Broadway - $63.56 Okay Code to 213-46301-43&M Inv# MN325-00036 — 224 East 4t" 5treet - $880.50 Okay: Code tr: 213.46301.430400 Inv# MN325-00037 — 2 55 East Broadway St - $133,00 Okay; Cade to: 213-46301-4�D400 Okay to pay? Please provide coding for each. Thanks, .Ii+�ie C�.erzc}�J Finance Assistant City of Monticello 763-271-3205 Ju Iie,Chenev@ci.monticella_mn.0 s AP ti_morlticeIIa_rnn.us CITY Of ill r mcd correspondence to and from the Cr#y of Monticello 90 vernment offkes is subiect to the Minnesota Government Dots Practices Act and may be disclased to third parties. Page.. 1 Kennedy & Graven, Chartered 200 South Sixths Street, Suite 470 Minneapolis, MNf 5r40 City of Monticello December 31, 2017 MN190-00101 General ICDA Matters Through December 31, 2017 For All Legnl Services As Follows: Hours 1 2120120 1 7 NIN1 Review docs arW monthly finance eonfererice call with 2 10 EDA aad City staff, Northland 1212612017 Mhll Monticello guidelines review 0.80 Total Services Total Services and Disbursements. $ , C FT � JAS ^ r t I 1'i Amount 399.00 152.00 551.00 551.00 Kennedy & Graven, Chartered 200 South Sixth Street, Suite 470 Minneapolis, MN 55402 (612) 337-9300 41-1225694 January 18, 2018 Statement No. 141070 City of Monticello Acoounks Payable 505 Wainut Avenue, Suite 1 Monticello, MN 55362 Through December 31. 2017 MN190-00101 General EDA Matters declare, umler penalty of law, that this account, claire or demand is just and correct and that no pert of it has been paid. r ignature of Cloirn k 551.CQ Total Current Billing; 551,00 Julie Cheney From: Jim Thares Sent: Friday. January 26, 2018 9:43 A To: Julie Cheney Subject: RE- Kennedy & Graven Invoices (4) Hi Julie, all good to go with coding provided; please see below. From: Julie Cheney Sent; Thursday, January 25, 2018 10:46 AM To. ]irn Thares Subject: Kennedy & Graven Invoices {4} Jim Attached are the following invoices from Kennedy & Graven. Inv# MN190-00101— Gen eral EDA Matters - $551.00 Ci r: Cade to- 2 13-46 301-4 310400 Inv# M325-OD034 — 220 W Broadway - $63.96 Okay; Cade to- 213-46301-430400 Inv# N325-OD036— 224 East 41h Street - 5880.50 Okay; Cocte to. 213 46301 430400 Inv# 1N325-00037 — 2S5 East Broadway St - $133-00 Okay, Cede to: 213-46301-430400 Okay to pay? Please provide coding for each - Thanks, Finance Assistant City of Monticello 763-271-3205 Julie,Cherney@ri.monticella-mn-us AP Ci,monticeIlo. mn.us CITY (if Mnt�d-q , t. 0 Mo. �i �d Ermil correspondence to and from the City of Montr'cclfo yover-rinwnt offices is subject to the Minnesota 6overnriunt Orates Practices Dict and may be disclosed to third parties. I W$B 7%)l Xeni�i Avenue sc it � � �+�' e. MN 5 .16 ,'7{17+ tia t_ZtJM City of Monticello Current January 18, 2018 Total Fee Attn, Wayne Oberg, Finance OIreCRor 9,800.00 Project No. 0-002596.340 Labor 0,00 505 Walnut Street, Suite 1 10.516.75 Invoice No' 1 700.00 20,316,75 N10nticallo, tulN 5552=8$31 Comments, 2016-017 Market Matching GL AW #213 48301 A31990 City Staff Reviewer Jim Thares RrofessionaI SOMces from_L3g_Cernber 1.2017 ta1)Vpcem#er 11, 7D17 Phase 01 2016-2017 Market Matching Retainer Fee Fee Total Fee 10.500.00 Percent Comptete 100.00 Total Eamed 10,500.00 Previous Fee Billing 9,800,00 Current Fee Billing 700.40 Total Fee 700,00 Total this Phase $700.00 Billings to Date Current Prior Total Fee 700.00 9,800.00 14,500 00 Totals 700.00 91600.00 14,500. 0 Total this Irwoice �— -$700.00 OutstandI g Invoices Invoice Number date Balance, 14 12127;2017 700,40 Total 700.40 Total Now Due $1,400.04 Billings to date Approved by, - - - Current Prior Total Fee 700.00 9,800.00 10.500.00 Labor 0,00 14,516.75 10.516.75 Totals 700.00 20,316,75 21,016.75 Comments, Approved by, - - - Project 0-002596-340 MONT - 2016-2017 Market Matching Invoice 15 Rewie44ed by Bre`. Weiss Project Manager James Giromterg Rage 2 CHECK REQUEST CHECK AMOUNT: � 180, OD Check to: Harry T. Lantto 907 - 2°d Ave S Buffalo, MN 55313 Meeting Worked: REQUEST DATE: t " 2.3— 11? Vendor # Planning Commission Date Time Amount Due EDA Meeting Date 1-10-1% Time 2.5 Amount Due (op City Council Date Time .2- Amount Due $ (gyp City Council Date Time 2.5 Amount Due + 40 Total Due: -f- I gb. 5D Planning Commission: EDA 213.1+1*3 0l, 4319 q D 4 (p 0 City Council 1 at .4111 b , 43111 D $t2o Authorized by: Date 1-23-11? TIME SHEETS ATTACHED MONTICELLO COMMUNITY CENTER TIME SHEET Employee Name HARRY LANTTO Position PUBLIC MEETING RECORDER - CONTRACT DATE TIME IN TIME OUT Hours Worked Meeting kin 5=15 j�1'l�y� 2 C, �cuh4 a PP -1 , 3�) 2 S � Meeting Payment $GO for first 3 hours Agreement: $I0 per hour for every hour after MEETING RECORDER: Harry T, Lantto SIGNATURE: DATE: _ (//--/ AUTHORIZED BY: DATE: 2018 EMPLOYEE REIMBURSEMENT VOUCHER CITY OF MONTICELLO (Effective 1/1/18) NAM v a, r DATE OF REQUEST Addresi3 to Mail (ifriecessary) 26 alter- eis 16 579 PURPOSEDATEJ dee back f Lrr muhsple reeluests) LOCATION �e back For inultipie requests} EXPENSES- (Please reference Travel and Reimbursement Policy) Mileage (S,545 per mile) A city vehicle was not available. {Total mil � — Reirnbum-able defined crn back Traveling conditions warranted persunaI vehicle use Parking Fee Meals raveling direction warranted personal vehi[le use. Other (include dated, itemized receipts) Lodging $ —0— (include, dazed, itemized hotel bill) SUBTOTAL Account Number , �� .4331{} } S_ Other �Q Account S— Desq6ption — — NOTE: TOTAL TO PAY APPROVED copies of documentation, including invoices, receip, W -.j Policy: reimbursable mirage will be the lmw of actual miles driven from Bor mal work loeation to traininglnieetinglconference iocation or the actual miles traveled ftom depar We locatioTt to desttnati less the m1lgio of commute to nc)rrnal vrk 1e)cation. IUstructions. If you are leaving alRd retuming to worn, kip boxes 2, 3 and 4. Otilerwise, subtract 4 from the lower of 1, 2 or 3 for miles claimed. l YOUR TRIP T: DoubleTree by Hilton Hate) Minneapolts - Park Place I HR IS MIN 1 36.5 MI Est, fuel C05t: $2,64 trip tirn* tra8ed on traffic conditions as of 6;28 AIA on January Prpnt a full health report of your .car with 29, 2018. Current Traffic; goavY HUM vehicle diagnostics iBook 906-;tSo1L 1, Start out going southwest on Walnut SUCOunty Hwy -S8 toward W f3th 51. w Then 0.03 miles 0-03 total miles 2. Take the 1 s I left onto W 6th St, If you reach W 71h Sf you've gorse a little too far. Then 0-07 miles 0.10 total miles 3. Take the 1st right onto Pine SUMN-25- ontirikp$ Iv follow Mlq-25- Caribou Coffee is On [he nght. 11 you are on E 6tfr St and reach Dsdar Sf you've gore a irtfle foo far. Then 4.30 miles 0,40 total miles 4. Merge onto 1-94 EIUS-52 E toward Minneapolisl t Paul. Than 23,27 miles 23.67 total miles 5. Keep left to take I-94 EDU -52 E toward 1-694. Then 2-17 miles 25-53 total miles $. Merge onto US -169 S via EXIT 29A, Then 7-86 miles 33.70 total miles [zit 7. Take the 1-394 E exit toward Minneapolis. Then 0,23 mites 33.93 total miles ENIT 8. Keep left to take the General Mills Blvd ramp, r Then 0.45 mires 34-38 total miles TT 9. Merge onto 1-384 EfUS-12 E via the ramp an the left toward Minneapolis. Then 1.55 rnlles 35-92 total utiles 1xir 10. Take the Park PI exit, EXIT 5A. toward Xenia. F Then 0-48 miles 36-41 total utiles r+ 11. Turn right onto Park Place Blvd, Then 0.13 miles 36,54 total miles Minneapolis, MN. 1500 PARK PLACE BLV D. Your destination is just pest Wayza te Blvd. If you reach w 'teff? S1 YOU'Vig gone a fiftle too Fat'. V" of directions and mops is subject to ouf terms Q1 Use We ft4i't guarantee accuracy- rouse CCnditions Of U58bi lay. You assume all risk qi use, In 'm.vh 46 L Ja' Last EkdAe( G,nV* ka P yrnoih F&A!(�oZij N1 ri - e NEW G'-pTkir., I.V6 C 6'T3 Edd Prairl + Book a hotel. tonight and save with some great deaLs! (1-677-577-5756) Blaine w0L.' k Park innea PoLis S �Qvv- bark T1PAU1 F "Vrrrjo,.. SOU + Bloomington He� Eawn Car trouble mid -trip? -A MapQuest. Roadside Assistance is here: (1 -888 -46i -36? -S) Ain Thares From: EDAM <infoaedam_org} Sent: Monday, January i5, 2018 12:54 PM To: Jim Thares Subject: Winter Conference: See you Thursday Economic Development Association of Minnesota Thank you for joining as for... 2018 Winter Conference January 18-19, 2018 DoubleTree Minneapolis Perk Place We Wk forward to seeing you lalar this week as we kick off ar7uther year of EDAM ed"Q.�JpDn! Irnpertant information: C❑mplimenlary parkirrp is av�,Nabre iri the tioteI parking lot. + W Pwn you arrive, go upstairs to check !n at the reg lstration desk In the Park Foyer. + Breakfast and req fslr�i600 begins at 7:30 am on Thumd;l y. January i8 The first session bcgins et 8:30 am, i- - ,- :r, r,t,,, and Ktart planning which sessions You'd like to at1fknd! Printeri copies of the schedule will he availsbte unsfte_ Exhibitors; You will receive a separatemaR�wilh more �t�llsahautst►_ r ■ Speakers. If Ou are a speaker and are not attending the rest of the con5erfrsc Veale prawn to arnve 30 minutes prior ter your sesstnr, start tlmQ. F Cancellation; T h$ cancellation deadlirrR has Passed and refunrs r.;,1 not to gNerl #f koi are not able io make It, you may send someone from your t:ompany in yoar place fjIh r notifj- us in advance or st the registrahon desk. SPONSORS 7 E N C. E NI L KO, lu L failc TE5I NC9 I' C. El += - A s s a_ ( I it T if O K lel Y L ir 1�T.I.wrrbr�p�'1ym.+ jr E H L (0) m"I l 4DJEi DEtARrMN12xri6E LLADLRy IH PIIaMr(AhMCE � � ,�, REiOURCEiREH �314 iixT10H A# NOR LANA r: SECURVIES SOUTNWE5T fNITIATiVE FOUNDATION AL pringsted www-edsrn.org STAY CONNECT l ED 000 Tlie Econ0rnlc Dev(,Icpmcnt Association of Minnesota 1 4248 Park Glen Road, Minne,3poIis, MN 55416 Unsubserlb� tiirn thare$Ccbci.monticello.rnn.u Uociate Profil I About r Zervi c elder Sent by info edam-org in collaboration with ConswntConw 0 Try it free today 2 YOUR TRIP TO: Wright -Hennepin Co -Op Electric 26MIN I 1 9.O lMfll R Est. fuel cost: $1.92 Trip time trasod ah [raffia can dI fialla as of a;25 AM oh danUary Print a fust health report of your car wvith 29, 2016. Curreni Trfafflc; Llgrt �9 HUM vehicle diagnostics {Bvo} g06-z5oi 9 1. Start out going southwest an walnut SUCOunty Hwy -58 toward VV 6th St. Then 0.03 mites 2. Take the Ist left onto W 6th St, If you reach IN 7rh St yourvegone a tiffle foo far. Then O,OT miles 3. Take the 1st right unto Pile SUMN-25_ Continue to follow MN -25_ "ribau CC?ffee rs On lite right. 1f you are on E 61h St and reach Cedar St you've gone a Jrfffe too far_ Their 9.37 mites d. Turn slight left onto MN-5511-1Ighway 55 NE. Cantinue tri follow MN -55. MN- is 0.1 mites past 121h St NE. If you reactr MN -25 yori've gone about 0.1 rneles too far. Then 9.43 miles S. Turn left onto Electric Or, If you reach Lane Oak Rd you've gone about 0_ 2 mffes too far_ Then 0.11 miles 14, 6. Wright -Hennepin Cc -Op Electric, 6900 Electric Or, Rockford, MN, 5800 ELECTRIC DR_ Your destlrralion is }u,51 P?st Walnut Sr. Your besOnalion is 91 the end of E1eclric Dr. 0.03 total mites 0.14 total miles 9,46 total mlles 15.89 total miilas 19,00 total m1les U9e Of dir9cliona antl maps is bubject to aua Terms Of Ube. We don t quare Mee BCC UFO Cy. rpWe eondlli0n& or Lmsbility. YW sag ume all risk of Lisa. illvercxves»:. . � Lakonia`,: Stale Park .a iNP, A 5t M�ch{yef -ice{ w Flassen� Farm Resetwh 4b% KWOMArr R? Yk k �-� Corcoran Row-kFord Grlfn(�;d 7. I F.omtto Delsxrs H�T.F. Boob a hotel tonight and i Car trouble mid -trip? save with some groat deals!MapQuest Roadside {1-888-461-3626} (1-877-577-5766) Imo' Assistance is here; �� u l ohr rt Par�o n 2017 Annual Meeting. January 19, 2018 I=fo�10lr5Si DeY@lOp�iBi1��iREf5flip �� poqrk-,vrfu frLff AGENDA I. Dears open, Networking and Breakfast served 8:00 2. WELCOME— Duane Northagen 8:21}-8:35 * Mission of the Partner5hig ■ Wright Tech CED Class introduced Mark Lee, Class Facilitator) * Introduce acid thank the 2017 Board who governed the Partnership 3. KEYNOTE SPEAKER — Susan grower, M1N State Dernograp her (introduced by Tim 7ipoy} $:35-9:05 4. ELECT)ON and REAPPot NTM ENT o` 8OARD MEM8ERS — Randy VoelIer 9:05 9:10 * Thank Susan Grower Is The Board of Directors reWmmends the following list Board mr..nhers Reappointments to the Roam of Directors - (Preyrefted to bDdy by Randy) + Kelly Hinnenkamp, City of Annarndale * Tim 7ipoy, Centra 1 Minnesota J,ob5 9, Training ■ Patrick Baurngard, Minnesota Lakes Bank * Keith Franklin, Franklin Outdoor Advert 15ing ■ Brian KoslDfSky, Wright Tech Center (VOelfer reQuesrs motion acrd second ro reappainr—Board of Directors reoPpaintmena approved) Presentation of Officers * Kelly Hinnenkamp, Chair i Ryan O'Connar, Vice Chair + Randy VoeIIer, SectetaryfTreaSurer IVoelier requests motion and serood to approve 2018 Officers and sfotes, 05 oppoinred by the Board of O+rectors, I present the Officers of the Portnejeshog for 2018) 5. AWARD CEREMONY—Randy Welter SAO -9:35 Wish new leadership 'Success irn 2038 and introduce awards OutstanLl'ng f4en Of Wright COunty—DoVL- find Connie #'Hoinn es Outstanding MeMbEr Mvestor of WCfDp — Grinds#one Construction Outstanding Stud -up EntreprEneur --Radio-Active Mobile I<lectronics Jq'gh Eroncm c Vitaft Business of the Year— Malco 6. ANNUAL UPDATE — Duane Norf3Rpm. Executive Director 3:35-4:50 7. CLOSING REMARKS— Kelfv Hinnenkarnp, 2018 Chair 9:50-10-,00 .sponsored by — CO Xcet'Energy YOUR TRIP T: DoubleTFae by Hilton Hotel Minneapolis - Park Place 33 MIN 1 23.0 NJ Est. fuel cost: $1.64. Trip time basad an traffic candRinns III of 8:24 AM on ranLJ,rry 29. 7418. Current TraHic: Mai�exalg �9Pririt a Rall health report of youf Ca with a UM vehiCLe diagnostics (800)gati-25D1 9 1. Slart out going south un Eleclfic Dr toward Walnut S:. Then 0.11 miles 2. TuFn left onto Mate Hrghway 55IMN-55. Continue to follow MN -55 - MN -5 5 N-55_MN-55 is jird past Walnut St. If yarn are on Auluron Oaks Dr and reach Lin nea Pkwy you've 9,0 no about 0.4 miles too far. Then 19.17 miles 3. Merge onto US -169 S. Then 0.83 miles +Flt 4. Take the 1-384 E exit towarc Minneapolis. 21 Then 0,23 miles EN I t S. Keep 1ef1 to tats& the Genera[ Mills Blvd ri�rrip. K Ther) 0.45 miles 6. Merge onto 1-394 ESUS -12 E via the ramp on VII- left toward MinneepoUs_ Then 1.55 miles r 7, Take the Park PI exit. EXIT $A, toward penia. Then 4.48 miles 8. Tura right onto Park Place Blvd Then 0.13 miles 9. DoubleTree by Milton Hotel Minneapolis - park Place. 1500 Park Place Byrd, " Minneapolis, Mf1, 1500 PARIS PLACE BLVD. Your destinatiorF is just past Wayzata Blvd. If you reach W 76th St you've gone a nme tao lar. 0.11 total miles 19.28 total miles 20.12 total miles 20.35 total miles 20.80 total miles 22.34 total miles 22.83 total miles 22.96 total miles lyse vF directlortc and ma p9 19 suGJecl 10 our Term�g. We don't gusran Let accuracy, route cortdiltana or u;ebMy. YDU a55urne al{ rook or use. Coon Rap Haflovor +' Chaf lF l -n x - `_� i 1 Bro lyn X Park " Corcoran Mapie drove jo jo r. r- ;. Lorettn / + Irr{iti;r,�+►riarnr.r _ 0 Crystal Med.r..7 til' t . h+,771� Pl3 r J. r 11, Lake "`�7 Lake i � � [den V.k[ s evMi . Orono 102 Mn -tonk.-, S! Lours Pao, Mn,rnrl h SI Rfi rFarl.l: #v Ed'Inn I I ShnrewcxA Book a hotel tonight and Car trouble mid -trip? save with some great dew5-,!4 MapQuest Roadside (1-877-577-5766) Assistance is here; (i-888-461-3Gz�} i } Jim Thares Frorh: EDAM <1nfc@L-darrh,org> Sent: Monday, January 15, 2018 1254 PM To: Jirn Thares Subject: Winter Conferenr=e, See you Thursday Economic Development Association of Minnesota ota Thank your for joining res for... 2018 Winter Conference January 18-19, 2018 DaubieTree Minneapolis Park Place We look forward to seeing you later this wed a1 we kirk off another year of EDAM educalion1 Important Information: * Complimentary paving is available in the hotel parking lot. * VV hen you arrive, 9 upstairs t4 check in ah the registration desk in the Park F❑yer. + Breakfast and regWralion begins at 7-M am on Thuf day, January 18, The first session bogins at 8;30 am. + Ctreck out Iho agenda and start plonnfng which sessions you'❑ like to attend! Printad copies of the scheduhe with be available on$lto. + Exhliblters: YOU will recOive a separate erna-f with more delaits about setup, etc. + Speakers_ If you are a �24)eaker and are nr,t attending the rest of the eUnferer}ce, please plan to amve X minutos prior to yvur sesslan start time, « Caneftlatilen The vancellatpan deadline has passeO and reiunr#s will riot be g1ven. of you are not able to make it, you may send $Omeane From your cvmpany,rt your pt#r , Fither nothty us in advance or at the registration desk - SPONSORS 0 GREATER MSP'" Minneapolis Sart Paul Regional. EcDnornic Qevelopmen# Parmersiiip Contact Information: City of Monticello INVOICE NUMBER INVOICE DATE DUE DATE Portal -2018_5 January 29, 2016 Upon receipt DESCRIPTION AMOUNT GREATER MSP eiesforce.com Communities Portal 2018 License $450.00 Service Dates- 111/18 - 12i31/18 Thank you! Total Due: $450.04 330 MAKE ALL CHECKS PAYABLE TO: GREATER MSP ATTN: Micki Mathiesen, Controller 440 Robert Street North. Suite 1604 Saint Paul, MN 55101 Julie Cheney From: Jim Thares Sent, Tuesday, January 30, 2018 11;42 A To, Julie Cheney Subject; FW_ Salesforce Invoice Attachments= 2018 invoice to City of Monticello,xls J ulie, I received thj$ invoice via email today, It Is fine. Please code to; 2 1 34630 1-4-4 330D. From: Betsy KnappLrrrailto:bet5y.knapp@grl=aterrnsp.or9l Sent: Tuesday, ]anuary 30, 2018 9:09 AM To: ]im Thares Subject: Salesforce invoice HI Jinn, Please see attached the Salesforce invoice for 2019. Let me know if you have any questions. Regards, Bc-tsy Ian , . Administrative Assistant - Business Investment GREATER MSP' V-• .5, ,. - - ..., e f e•.S� 400 Robert Street North, Suite 1600, Saint NO, MN 55101 www.gr ea to rm 5 p-org Office. 651.287.1367 Mobile- 612.209.1217 Email; betsy,kaagp6-D6reatermsp.org ,..R i13IN Vw&&,A amide Nil Follow @greatermsp on Twitter/Instagram/FacebookJlinkedin/YotiTube 1 Julie Cheney From, dim Thares Stbnt: Thursday, January 25, 2018 9:50 AM To: Sarah Rath Iisberger; Julie Cheney, Wayne Oberg Subject: FW: Lease statement far Broadway Pi5rking Easement - COMM ERCIAL - 2 as of 1122,12018 � Bullseye Property Management Sarah, JullP- Wayne, this i51he firs# Invo;Ce from 601NeVe Ngperty Managetr-rf)t #ec, The Pai-i;og Lal Easement Maiiienance* AgreerVnt VhAt thefDA is part orl no through the purchase et the vaCard fo! M 220 West 1;raadway. This is -ov6m the mono h1v involce5 W11i loom Ke for 2018 f0f s110w Plowing, inn cutting i�rtivwties, new -0triphig, [rack repairs, .7ic- I am not sure ho►u YO W3 W [ode this ewen'e? Do v e ritv d to review further From, Buildiurn@Bullye411.corn [ma iko:N,ldWrnCELOull5eye411_corn 1 Sent: Monday, January 22, 2018 3:39 AM To: Jim Thare5 Subject: Luse statemetnk for Broadway Parking Easement - CC) MMERCIA L - 2 as of 1122{2018 1 BuIfseye Property Managernent Lease statement as of 1/22/2018 City of Monticello Economic Development Authority Account #; 00405914 5 Lake Street Suite 500 Bich Lake, MN 55309 Date Memo Amount Balance Prior balance $0.00 1212:912017 Payment {$97.99} ($97.99) 11112018 Common Area Maintenancre $121.60 $23.61 21112018 Common Area Maintenance $121.64 $145.21 Payment is due by the 28th of the rnontl7. Balance due: $145.21 Manage your account online: hitp-1/balist-yepr4)pertii.s.managebuilding.com BulIseye Property Management 763-295-6366 ad rn J n(i0i,] I Iseve4l l,com BLIIlseye Properties PO Box 189 Monticello. MN 55362 City of Monticello Econornic DeveIopn)ent Authorit}: 35 Lake Street Suite 500 Big bake, MN 55309 Bullseye- • Properties Maxagernrrxt , ,Lern6q - R&Ay After reviewing a fuII ycar of rxperrse'; i11 2017 And fir :iflirts! for el, Pen scS 111 201 , e Imvc documined nal iiincrense r{+ the monthIy pzrm� Us W the llroadi%a� Park frig Easement is neccs&irv. the big �t "sort for tit is is the additi;in ef`a NservC oCcoting for 2018, Wilhouta resi roc 4i ount to Pay #i*relse caentua] full repIACtIlierlt OfIbc lot. Owners tvi 11 Ix subjected to a very lar2c €asse.,,FmcnI when that TPme eventually docs come_ fty sav lag a Iillle b 1 t each year towards full mpi aizemeni. VL -e trope to Avoid that a5 best Lis pUS..4'ible. Your 2 013 monthI q, pay mens amaunt retroactive to )anuary 1, ;018 i,, * 12 1.60 We will eons slue t .lo our best to keep costs dusvo for ion ws well ax protevt t1w via biIIt)' aithe tat to serve vau and your customers moving fom ard_ All the best, Josh Fuhreck Bullseye Properties 763-2�5-6566 Baliseye Prop"d s Www- &AseyeProperties,net Pthpne= X763) 395-6566 $17 State Hwy 25, Monticello, MH 55367, 58lespauttse 11. COM rax: (763 307-5483 Accounts Payable Transactions by Account User: Julie.Cheney Printed: 02/21/2018 - 3:11PM Batch: 00206.02.2018 Account Number Vendor Description Monticello GL Date Check No Amount PO No 213-00000-157010 PREFERRED TITLE INC Closing on Property @ 224 4th Street 02/27/2018 118772 213-00000-157010 PREFERRED TITLE INC Fes - Closing on Property @ 224 4th S 02/27/2018 118772 Vendor Subtotal for Dept: 00000 213-46301-430400 CAMPBELL KNUTSON PA EDA Legal -Jan 2018 02/27/2018 0 Vendor Subtotal for Dept: 46301 213-46301-430400 KENNEDY AND GRAVEN CHAR] 255 E Broadway St through 1/31/18 02/27/2018 118760 213-46301-430400 KENNEDY AND GRAVEN CHAR] 224 East 4th St through 1/31/18 02/27/2018 118760 213-46301-430400 KENNEDY AND GRAVEN CHAR] General EDA Matters through 1/31/18 02/27/2018 118760 213-46301-430400 KENNEDY AND GRAVEN CHAR] 103 Pine St through 1/31/18 02/27/2018 118760 Vendor Subtotal for Dept: 46301 213-46301-443990 DEMVI LLC March Parking Lot Easement Maint A; 02/27/2018 118744 Vendor Subtotal for Dept: 46301 The preceding list of bills payable was reviewed and approved for payment. Date: 3/14/18 Approved by Subtotal for Fund: 213 Report Total: Jon Morphew - Treasurer 71,950.00 1,013.50 72,963.50 160.00 160.00 1,015.71 1,077.50 266.00 760.00 3,119.21 121.60 121.60 76,364.31 76,364.31 AP -Transactions by Account (02/21/2018 - 3:11 PM) Page 1 American Land Title Association ALTA Settlement Statement - Borrower/Buyer Adopted 05-01-2015 Preferred Title, Inc. ALTA Universal ID 113 West Broadway, PO Box 727 Monticello, MN 55362 File No./ Escrow NG.. 01043-16 Print DaW & Tune: February 20, 2018 at 43;27 -PM Officer/ Escrow officer: K�-AY #rW5on Settlement Location_ 113 West Broadway Monticello, MN 55362 Properly Address: Buyer, Seller: Lender: Settlement Date: Disbursement Date: 224 4th Street East Monticello, MN 55362 Caty of Monticello Economic Deve4ment Authority Estate of Mame Jamison February 28, 2018 February 28, 2018 Description Buyer Debit Creelit Financial Sale Price of Druperty Assessments Celt 03 2018 Tax ProrationsJA ustments County T8xe5 01101/18 to 02128118 Loan Charges to Other Loan Charges Impounds Title Charges & Escrow Settlement Charges Title- t]wner'sTMe Insurance to Preft'rrEsd Tltle, 1rw-, Coverage: 71,950.00 Premium: $ 234.00 Tide - Abstracting Fee to Preferred Tide, Inc_ Title - Assessment Search Fee is Preferred Title, Inc. Title - Closing Fee to Preferred Title, Inc - Title - Exam Fee Title - Name Search Fee to Preferred Title+ Inc. W PreferriW Title, Inc. $ 71,950.00 $ 234.80 $ 247.00 $ 35.00 287.50 $ 150.04 $ 34.04 $ 512,79 $ 63,74 Copyright 2015 Amerlcan Lana 7stle Assadatron (01843-kB.PFp{U1D03-1915) Ali rights reserved Primed on 07}20118 at 03 -27 -PM Title - Recording Service f=ree to Preferred TtEe, Inc. I commission Government Recording and Transfer Charges Payoffs F -Miscellaneous Subtotals Balance Due FROM TOTALS ALTA Settle"nt Statement BOrrowen'Buver- Continued Dobit Crud ll S 30.00 $ 72963.50 $ 72963.50 $ 676.53 $72,286,97 $ 72963.50 Acknowledgement We; rsave C-aletUtly TeVI eWe<j the AC.A Selliament Statement and fund t 2D be a true and accurWestalamon1 al all Taceip;s 3rd rfnibwrsem erils rrade on rr+y aecount or tay me 'in this Transaction arict fulher rertity t hat 1 KOVe Ters1v4Dp a copy of 71a A I. A ettlemenl Siatemert, Wert authorize P•eTeVedTgle, Inu. io cause the fundi to bedisburseu rn ac�,,ardanc-e with -h -s s:a(Q'lort. City of Monticello Fcanomic Dcveiopment k4herity BY: President ATTEST; Secretary Kelty Erickson, Escrow Officer Copyright 2015 American Land Mile Assoaation (411003-18,PF0}01003-19115) All righ95 rp rved Printed on 02J20/18 at 03:?7,PM Julie Cheney From: Jim Thares Sent: Tuesday, February 20, 2018 4-24 PM To- lube Cheney; Sarah Rathlisberger; Wayne Oberg Subject: Documents for EDA Purchase of 224 East 4th Street - Vacant Residential Lot Attachments: Fully Exeucted Purchase Agreement - 1-16-2018.pdf; 2018 -1 -EDA ResoJution - Fully Executed.pdf; Closing Settlement Staternent 2-2-201 B.pdf .Julie, Sarah and Wayne, attached is the fully executed Purchase Agreement, the fully signed Approving Resolution and the Settlement Statement. The closing is proposed to occur on 2-28-2018 shortly after lunch. The tots I of the check looks to be $72,963.50. Please code to Land held for resale line again; 213-46301-451010. Thank you. EDA RESOLUTION NO. 2018-1 RESOLUTION APPROVING PURCIIA E AGREEMENT FOR THE ACQUISITION Of 224 EAST 4TH STREET BY THE CITY OF MC>NTI ELLO EC~ONOMItr DEVELOPMENT AUTHORITY BE IT RESOLVED BY the Board of Cominissioners ("Beard") Of the City of Monticello Fcoitomic Development Atohority (the "Authority") as follows: SeOion 1- recitals. 1.01- The Authority and RiNmond Fuller, as I'ersoi-mI Representative of the Estate of Wrie Jainison (tile -Sella`) desire to enter into a purchase a�reeirmw (the •Purchase Agreement") pu suant to which the Authority will acquire c0laii3 prolm-ty located at 324 East 4th Street (the " Propel-tv") in the downtown area of the city (if onticellt) 011c "City') fmni the Seller for economic redevelopment purposes related to [lie rt�italizatitut 0 the downtown area, The Property is described in Exhibit A attached hureto- 1-02. Pursuant to the PM -chase Agreement, the Authority will purchase the Property from the Seller for a total purchase pricy* of" S 71,950.00 pi us related closing costs. f-03, The Authority 1ilti(ls that act] uisitiOn of the Properly conforms to the City cif onticeflo Redevelopment Priorities and PoliL:ie& as approved by the City and Authority, and will facilitate tllt; economic redevelopment and i-evitalizatioa Of the down town area of -the Cite, 1.04. Pursu�xnt t� hh��nesota Stt�tutes, ectia�i #Ck?,356, subd, ?. the Plunni�� Ccki��missinn of the City wiII meet 011 Fie'b airy 6, 201 S, to ret'im, the proposed acquisition and its conformity to the City's Co npivhcnsive I'll all. Section 2. Purchase A re-111ont Ap2M,, 2,01, The Authority hereby approves the Purchase Agrt eejnent in subMan Iially the form presented to the Authority, sub -jest to the Plunnin9 Coin mission's Ilnding that the a�<1LLiSi1icl1 of the Property conforms to the CoMprcheusive Plan and to modifications that do not alter tate substance of the transaction and that are approved by the President and Ex=utive director, provided that execution of the Purchase Agreement by those officials shall be conclusive evidence of their upprova1, 2.02- Authority staff and Officials are authorized to take all actions ncces�;ary to perfOIIn The Authority's obligations under tic Purchase Agreement as a whale, includiag without limitalion execution of any dauuments to which the Authority is a party referenced in or attached to the Purchase Agreement. and any deal or other docuinems necessary to acquire the Property from the Seller, a I I as described in the Purchase Agreement. 1 Error! Umkno-An d"o4jjrtnl property nan3t- Approved this IOth day 0f January, 2018, by the Board 0f Commissioners of the C. ity of Monticello Economic Development Authority, Presideni ' ATTEST; xe�u five Director EXHIBIT A PROPERTY f.nts 5 and 6 in Black "07' in A_C - Ricks Addition to the Towns ite off'Lower Monticello, wlight COLL11ty, Minnesota. PID: 15501 X7007050 Error! llakknfp" n 4lucipment proprri} ii;iikk-_ PURCHASE AGREEMENT 224 East 4"' Street, Monticello, MN 1. PARTIES. "Phis purchase agreernerit (the "Purchase Agreement") is made this IA day of January, 2018 (the `Eff"tive Date', by and bctween Raymond Fuller, as Personal Representative of the Estate of Marie Jamison, single at the time of death {tlie -Soller") and the City of Monticello Economic Development Authority, a public body corporate and politic and political subdivision of the State of Minnesota (the "Buyer', 2. SIJ13JECT PROPEWI' . The Seller is the owner of that certain real estate (the "Property") located at 224 East 4�h Street in Monticello, Wright County. Minnesota =d legally described in Exhibit A attached hereto, 3. 0 FFE RJACCEPTANCE. In consideration of the mLituai agreements herein contained, the Stlyer offers and agrees to purchase and the Seller agrees to sell the Property pursua,it to the terms and conditions of this Purchase Agreement. 4. CONTINGENCIES. This Purchase Agreement is contingent upon the following, A. Approval of this Purchase Agrecinent by the Buyer's governing body; 13. Written findings by the Planning Commission of the city of Monticello that the acquisition of the, Propetty co"forms to the City Comprehensive Plan; C. The Buyer conducting an investigation on the Property and teceivirng a report that is satisfactory to the Buyer as provided in Section 8 of this Purchase Agreement, D. Condition of title being satisfactory to the Buyer following the Buyer's examination of title as provided in Section 11 of this Purchase Agreement_ The Buyer shall have until the Closing Date (as defined in Section 7 of this Purchase Agreement) to retnove the foregoing contingencies_ The contingencies are solely for the benefit of the Buyer and Contingencies B and C may be waived by the Buyer. If the contingencies are duly satisfied or waived, then the Buyer and the Seller shall proceed to close the transaction as contemplated herein_ If, however, if one or more of the contingencies is not satisfied, or is not satisfied on time, and is not waived by the Buyer, this Purchase Agreement shall thereupon be void, at the option of the Buyer. If this Purchase Agreement is voided by the Buyer, the Buyer and the Seller snail execute and deliver to each other a termination of this Purchase Agreement. 5. VA ANT LAN DIN0 PFRSONAL PROPERTY INCLUDED IN SALE, 'Flit Property is vacant land and there are no items r>fpe- nal property included 1n this sale. f. PURCIJ ASE PRICE AND TERMS: A. C'ONSIUERATION. T t Buyer shall pay the Seller S71,950.00 for the Property 5 142 58v4 MNI MMQ5-36 B. TERMS: lzarnest Money. No earnest money is payable under this Purchase Agreement, Balance of Payment. The entire purchase prig: of $71,950,00, as adjusted for closing pro -rations and adjustments as hereinafter provided, shall be Paid to the Seller by the Buyer on the Closing I]ate_ 7. CLOSING DATE. 7be closing of the sale of thee Property shall take: place on or before April 30, 2019 (the "Closing Datej, unless otherwise mutually agreed by the parties. The closing shall take place at ,Monticello City Hall, 505 Walnut Strut, Monticel10, MN or such other location as mutually agreed upon by the parties. S. DUE DILIGENCE, ACCESS AND INSPECTION. Promptly upon execution of this Purchase Agreement, the Seller shall deliver to Buyer copies of any available environmental reports or studies on the Property known to Seller. Seller grants to Buyer a license to enter onto the teal Property at any time after the Effective bate, upon reasonable prior notice to Seller, at Buyer's sole cast, expense and risk, to condrict such investigations of the Properly as Buyer in its sale discretion may desire. Buyer shall have a period of thirty (3 0) days after the Effective Date (the "Inspection Pcriod") to complete such inspections and examine the Records and to notify Seller that Buyer, in its sole discretion, has found the condition of the Property to be unsatisfactory. In the event that Buyer gives such notice prior tU the expiration of the Inspection Period, then this Agreement shall terminate. Buyer shall promptly restore the Property to substantially the same condition in which it existed immediately prior to any physical tests conducted by or on behalf of Buyer. Buyer shall indemnify and hoId Seller and Property harmless from all Jess, cost, damage and expense, including reasonable attorneys' fees, which Seller or the property may suffer or incur as a result of such entry by Buyer, including without limitation tete cost of defending against any claim for a statutory lien against the Real Property resulting from labor, materials, equipment, skill or services furnished with respect to the property at the request of Buyer. This indemnification provision shall survive ally termination of this Agreement. 9. DOCUMENTS TO BE DELIVIR RED AT CLOSING. The Seller agrees to deliver the following documents to the Buyer at closing and to Buyer's attorney for review at least five business days prior to closing: A. All docutnents requimd under the Urdforrn probate Code 10 enable Seller to provide a duly recordable warranty deed conveying; fee simple title to the Property to the Buyer, free and clear of any mortgages, liens or encumbrances other than inatters created by or acceptable to the Buyer; 113. An affidavit from the Seller sufficient to remove ally exception in the Buyer's policy Of title insurance for mochanics' and nmaterialmens' liens and rights of parties in possession, 514238v4 MNl MN325-316 2 C. A non -foreign affidavit, properly executed, containing such information as is required by the Internal Revenue Code Section 1445 and its regulations; 1). A Minnesota Well Disclosure Certificate delivered with this Purtliase Agreernent, or, if there is no well on the Property, this Purchase Agrcernent and the warranty deed must include the following statement "the Seller certifies dial the Seller does not know of any wells on the described real Property;" and E. Any notices, certificates, and affidavits regarding any private sewage systems, unde3 -ound storage twiks, and environmental conditions as may be required by Minnesota statutes, rules or ordinances. R Any other documents reasonable required by the Buyer's title insurance company or attorney to evidence that title to the Property is marketable and that Seller has complied with the terins of this Purchase Agreemeal, 10. REAL ESTATE TAXES AND SPECIAL ASSESSKENTS. A. The Seiler shall be responsible for all veal estate taxes, including any deferred real estate taxes, penalties or interest, for the years prior to the year in which closing occurs. The Buyer and the Seller shall prorate as of the Closing Date the real estate takes for the Property that are due and payable in the year of closing - B. The Seller shall pay all spacial assessments levied or pending against the Property as of the Closing Date, including spacial assessments certified for payment with the real estate taxes and all deferred asscssments. 11. EXAMINATION OF TITLE. 'ire Buyer's examination of title to the Property shail be conducted as follows - A. SELLERS' TITLE EVIDENCE. Promptly after execution of this Purchase Agreement by the Buyer's governing body, the Seller shall provide the abstract of title andlor any prior title policy covering the Property. Upon receipt of such title evidence, B4iyer shall order a title commitment for title insurance, at Buyer's sole expense. B. BUVER'S OBJEMOI\' . The Buyer shall make wlittett objections (the "Objections") to the form or contents of the title commitment or condition of title witl& 10 business clays after receipt of the title commitment and tilis executed Purchase Agreement. The Buyer's failure to make Objections within such time period shall constitute waiver of the Obiections, The Seiier shall have 90 days after receipt of the Objections to cure the Objections, during which period the closing will be postponed, if necessary, The Seller shail use good faith efforts to correct any Objections, if the Objections are not cured within such 90 -day period, the Buyer will have the option to do either of the following; 51425RY4 MN[ MN325-36 I. Terminate this Purchase Agreement. provided that if termination is due to the Sellers' failure to cure title objeenons or any other default of the Seller; or 2. Cure the Objections at the Buyer's expense and proceed to Closing. 12. CLOSING COSTS ANI) RFLATED ITEMS. The Se]ler shall be responsible for the following closing costs and related items' (i) all recording fees and charges relating to the filing of any instnlmcnt required to make title marketable; (2) recording fee for the warranty Deed; (3) state deed tax, conservation fee or outer federal, state or local documentary or revenue stamps or tia,lsfer tax with respect to the deed to be delivered by the Seller; (4) one-half of the closirxg fees charged by the title company engaged in connection with this Purchase Agreement; (5) Sellers' own legal and accounting fees associated with this transaction, The Buyer shall be responsible for the foilowing closing costs and reIated items- (1) the cost of any survey of the Property required by the Buyer; () any fees incurred for the title cOmnlitrnent; (3) the cost of ail premiums required for issua lice afthe title insurance policy; (4) the fees for any soil tests, environmental assess,nents, inspection reports, appraisals, or other tests or reports ordered by the Buyer; (5) one-half of the closing fees charged by the title company engaged in Connection with this Purchase Agreement (6) Buyer's OUTI legal and accounting tees associated with this transaction - 13. POSSESSION/CONDITION OF PROPI?RTY. The Seller shall deliver possessio;7 of the Property to the Buyer on the Closing Date in the condition as the Property existed on the date of exeCLition of this Purchase Agreement. 14. DISCLOSURE; INDIVIDUAL SEWAGE TREATMENT SYSTEM. The Seller tLpresents that there is no individual sewage treatment system on or serving the Property- 15. roperty-15. WELL DISCLOSURE. IRSeller certifies that the Seller does not know of any weIIs on the described real property - OR O A completed Well Disclosure Certificate accompanies this Purchase Agreement as Exhibit B, OR ❑ A completed Well Disclosure Certificate has been electronically filed as WDC number - 16. SELLERS' REPRESENTATIONS AND WARRANTIES. The Seller hereby represents and warrants to the Buyer as of'the Closing Date that, A. Title. The Seller has good, indefeasible and rnarketabfe fee simple title to the Property. B. Intentionally left blank. C. Defects, The Seller is unaware of any latent or patent defects in the Property, 514255u4 MNI MW25-36 4 Stich as sinkholes, weak soils, u.itrecordrd crasements and restrictions. D. Legal Compliance. The Seller has complied with all applicable Jaws, ordinances, regulations, slatutes, riles and restrictions pertaining to and af}ecling the Property and the Seller shall continue io Comply with such laws, ordinances, regulations, statutes, rules and restrictions - E. Legal Ptnceedin s. There are no legal actions, suits or other legal or administrative proceedings, pending or threatened, that affect the Property or any portion thereof; and the Seller has no knowledge that any such action is presently contemplated. F. Refuse and laza us Materials. The Seller has not performed and has no actual knowledge of any excavation, durnping or burial of any refuse materials or debris of any nature whatsoever on the Property, other than those disclosed by the Seller to the Buyer as of the date of this Purchase Agreement. The Seller has plot received any notice or advice Froin any governmental agency or any prior ovaler of the Property or any tenant, subtenant, occupant, prior tenant, prior subtenant. prior occupant or person with regard to Hazardous Materials on, from or affecting the Property. The term "Hazardous Materials" as xi -sed herein includes, without limitation, gasoline, petrolcurn products, explosives, radioactive mawrials, hazardous materials, hazardous wastes, hazardous or toxic substances, polychlorinated biphenyls or related or similar materials, asbestos or any material containing asbestos, or any other substance or material as may be defined as a hazardous or toxic substance by arty federal, state or local envircunrnental law, ordinance, rule, or regulation including, without limitWion, the Comprehensive Enviroiunental Response, Compensation, and Liability Act of 1980, as amended (42 U.S,C. Section 9601, et seq.), the Hazardous Materials Transportation Act, as arnerlded (42 U.S.C. Section 1801, of sq,), the Resource Conservation and Recovery Act, as amended (42 U,. C. Section 125 1, et seq.), the Clean Air Act, as amended (42 U.S.C. Section 7401, et seq-) and in the regulations adopted and publications promulgated pursuant theretn- Legal Capacity, The Selier has the legal capacity to cuter into this Agreetnent. The Seller has not filed, voluntarily or involuntarily, for bankruptcy relief Witliin the last year under the [,united Smtes Bankruptcy Code, nor has any petition for W- nkruptcy or receivership been filed against the Seller within the last year. H. Leases- There are no third parties iu possession of the Property, or any part thereof; and there are no (cases, oral or written, affecting the Property or any part thereof 1. Foreign Status. The Seller is not a "foreign entity„ as such term is defined in the Internal revenue Code. 51425XV4 MNE NIN325-36 J. ethaniphe%mine l rodniction. To the best of the Sellers' knowledge, methamphetamine production has not occurred on the Property, The Sellers' representations and warranties set forth in this Section shall be continuing and are deemed to be material to the Buyer's execution of this Purchase Agreement and the Buyer's performance of its obligations hereunder. All such representations and warranties shall be true and correct on and as of the Closing Date with the same force and effect as if made at that time; and adl of such representations and warranties shall stiuvive the closing and any cancellation or termination of this Purchase Agreement, and shall not be affected by any investigation, verification or approval by any party hereto or by anyone on behalf of any party hereto. The Seller agrucs to defend, indemnify and hold the Buyer harmless for, from, and against any 10s8, costs, damages, expenses, obligations and attorneys' fees incurred should an assertion, claim, demand, action or cause of action be instituted, niade or taken, which is contrary to or inconsistent with the representations or watranties contained hmin, 17. RELOCATION BENEFITS; INDEMNIFICATION. The Seller acknowledges that Seller is not being displaced from the Property as a result of the transaction contemplated by this Purchase Agreement and that elier is not eligible for relocation assistance and benefits and that the purchase Price includes compensation for any and all relocation assistance and benefits for which they may be eligible, The provisions of this paragraph shall survive closing of the transaction contemplamed by this Purchase Agreement, 18. TENANTS. 1110 Seller warrants that there are no tenants on the Property with a lawful leasehold interest, In the event any tenant comes forward and claims an interest in the Property at the time of or following the purchase. the Seiler agree to fully indemnify the Buyer for any and all costs associated with terminating such tenancy and for any and all relocation assistance and benefits that may be flue to such tenant together with attorneys' fees that the Buyer would have to incur in connection with legal action required to resolve any relocation assistance or benefits dispute with such tenant. For Sections 17 and IS of this Purchase Agreement, "relocation assistance and benefits" shall have the meaning ascribed to them by the Uniform Relocation Assistance and Real Property Acquisition policies Act, 42 U.S-C. Sections 4601- 4655 (the federal URA) and the regulations implementing the federal URA, 49C.F.R. Sections 24.1-24.603. 19. BROKER COMMISSIONS. Seller has engaged Wright Sherburne Realty as its broker in this transaction. Seller shall be responsible for paying its broker's fees. Seiler and Purchaser hereby represent and warrant to the other party that, in connection with this transaction, no other third -party broker or finder has been engaged or consulted by it or through such party's actions (or claiming through such party) and is entitled to compensation as a consequence of this transaction. Seiler and Purchaser agree to indeinnify, defend, and hold the, other party }Harmless against any and all claims of brokers, finders, or the like, and against the claims of all third parties, claiming any right to commission or compensation by or through acts of the irxdemnifying party or its partners, agents, or affiliates in connection with this Agreement. The indemnifying party's indemnity obligations shall include ali damages, losses, costs, liabilities, and expenses, including reasonable attorneys' fees and litigation costs, which may be incurred by the other party. 514 26 04 MNl MN325-36 6 20. ENTIRE AGREEMENT. This Purchase Agreement constitutes the entire agreement beMleen the parties and no other agi-cement prior to this Purchase Agreement or contemporaneous herewith shali be of ed"3 re except as expresslY set forth or incorporated herein. 21. Al4W1NDMENT AND MOT) IFItvATION. No amendirncw, modification or waiver of any condition, provision or term of this Purchase Agreement shall be valid or have any effect unless made in writing, is signed by the party to he bound and specifies with Particularity the extent and nature of such amendment, modification or waiver. Any waiver by either peaty of any default by the other party shall not affect or impa it any right arising from any previotis or s ubsequent default - 22. i3INDINC EFFECT. TWS Purchase Agreement binds and benefits the parties and their successors and assigns.. 3. NOTICES. Any notice, demand, request or other communication which may or shall be given or served by the Seller on the Buyer or by the Buyer on the e1IU, sha11 be deemed has been given a served on the date the same is hand delivered or the date of reoeipt or the date of delivery if deposited in the United States mail, registered or certified, postage prepaid, and addressed as follows; A. Ifto Seller, Raymond Fuller Personal Representative of the Estate of Marie Jamison 2670 9t' Street NE Monticello, MN 55362 With a copy to- Jim Fleming Fh,ming Law r ff`ioes, P.A- P-0. Box 1509 Monticello, MN 5,5362 B. If to Buyer: City of Monticello Economic Development Authority -Attention: Executive Director - 505 Walnut Street, Suite 1 Monticell�), MN 5 53 62 With a copy to: Mancha Ingram Kennedy & Graven, Chartered 200 South Sixth St., Suite 470 Minneapolis, Mei 55402 or such other address as either party naay give to another party in accordance with this Section. 5J4258v4 MNJ MN325-16 7 24. NO PARTNERSHIP OR JOINT VENTURE, Nothing in this Purchase Agreement shall be construed or interpreEed as creating a partnmhip or joint venture between the Seller and the Buyer relative to the Property. 25. CUMULATIVE FIGHTS. Except as may otherwise be provided lwercin, no right or rernedy herein conferred cn or reserved by citf7er party is intended to be exclusive of any other right or remedy provided by lave, but such rights and remedies shall be cutnuiati�,,e in and in addition to every other right or rentedy given herei11 or elsewhere or existing at law, equity or by statute. 26. ATTORNEYS' FEES. .If either party cornmences an action against the other to enforce arxy of the terms of this Purchase Agreement, or because of the breaelt by either party of the terms hereof, the prevailing party shall be entitled to its costs and expenses, including reasonable attorneys' fees, ineunrd in colmectiorr with the prosecution or defense of such matter_ 27. DEFAULT; RE EDIE ; SPECIFIC PERFORMANCE. If the Buyer defaults in any of the agreeraents herein, the Seiler may terminate this Purchase Agreement_ If this Purchase 'eement is not so terminated, the Buyer or the Seiler 11aay seek actual damages for breach of this Purchase Agreement: or specific perfbrrnance of 11 s Purchase Agreement; provided that any action for specific enforcement inust be brought within six months after the date of the alleged breach, S14258A MNl MNr 25-36 8 IN WITNESS WHEREOF, tile parties have executed this date written above. Purchase Agreement as of the ELLER Raynyond Fuller, as Personal Repmentative of &Dol State of Made Jamisorj 1 BUYER CITY OF MO ND ELL,O ECONOMIC DEVELOPMENT AUTHOWTV .L By: lts_ President By its: 1E utik+e Director 514258+x4 MMI MP4325-36 9 CAMPBELL KNUT ON ENTERED Professional Assacialion Attorneys at Law Federal Tax I.D. 041-1562130 Grand Oak Office Center I 860 Blue Gentian Road, Suite 280 Eagan, Minnesota 55121 (551 ) 652-5000 age 1 Crly 0 montice_io p 201 City Hall �'� ',��`� � , January 3 [ o 505 Walnut Street unt * 2348-000G� 86 Monticello MN 55362 RE: ADMINISTRATION SERVICES RENDERED TO DATE 04119c�- 01103 2418 JJJ EmapIr, Jeff re- ASCAP mi,s+c GCensing quest«on. HOURS 0.50 8000 11+105120'8 JJJ Fol law -up emails Jeri re {music iicenses 0,50 50.00 JJJ Persorriel - Em aft Tracy re' rneaicaI Leave extensrart, revrew and advise 4 50 54 04 011'G81201a JJJ EmadsStaff re Schedule rev iew agenaa packet, emaiisJeff re: RFP far archftrt serv4COS. 100 160.iJC+ JJJ Community Developrnenx - Emails Angela re- applrcatron signature requirements pts AS 110110 . 0 4M 050 ��} 01 x09120 t 5 ,1,1,1 Ernails Jennifer and Jeff re- EDA mernbershiR of DouriV Com mmsianer, incernpatiNlity 1 00IMP oli t4 C11 B JJ.r Personnel - Emarls Traoy re: me in leave e�densan 050 8000 011112018 JJJ Emails Racnel re meeting videolawm. relactbrr 050 so 00 G"S c016 JMQ rewew e-mail and attached Gocrrre'Lts "aroing B"rarri Cnaln of Lakes Aftsofy Cnuri&, Prepwe drafI Resolution A¢proving Amend eyta*s for altoTneey re%%ew. rrreefrrlg with omey OF -A 4 PAVYU C 80 S4.C{J J.1JDarr--no De.eiapr rt - Errrai% Angela re BCOL TnembersNpresclutron follow-ups o — C4 hj1 1� 16C 00 0111712018 JJJ EmarlS Jeff ane Councrl re: Ci'iZerr camp%irrt re: henTenforce men t a C bo n. C50 80. DD JJJ Personnel - Emarls Tracy re personnel matter G 50 01d812018 JJJ C.Ommun{ty Development-EmaitsAngeiaano Jean re% Otter 1 s• City of Monticello RE ADMINISTRATION SERVICES RENDERED TO DATE: Creek. 01122 2019 JJJ F finance - Emarrs Wayne re: torewarks b!dding of.r2-34 16 JMO Prepa,edraf:audit W! 4oratictney --4iewar4reris+on Page' 2 .January 31, 2418 Account* 2348-OOO 186 HOURS 0.50 8000 0.20 3200 020 1601 01F240018 JNFD Review outs'-andling 0evelcipment files iird a-� apl corcem.sislatus, M. a ttorr,ey - Dear Cte& CrosSiP9 end- C 11 CreeK ldditran w-11 Cizear C•eek Lafid 00 Dtter Creek Crorisinq 51x- A0dition wdh Rya* Matar Co ala SPeal IfIdUSt1,10, Park 9Q JM0 Revie'N 'T1 IX -e%Wse fTl:)m attorney. a-yra11 wfccm A rgela -egard+Ttg status of Oran fyilorior Co . C:ear geek Lar0 Co., and soeatir Incustrial Parir, "Io . A-56tcoL Q 20 Uu'u Community Deimlopment - Review Monticef,o deur eprrant �'es w'tl staff t � J.! jr Tr,,a„iry Development - Emai 15 Angela. 1011Cw-!jq5 re C adaic4u'Sm Er assessment agreeman#s, -ssaes ma to _ , A'Fj� 0D 01.26f2Ct la J.iJ ;1erson neJ - Emails Teacy re: persornei mads r, follow-uins re errpoo ee londrw3f~nhealth datia too 0112812019 JJJ Review staff emarts schedules 0.50 0113012016 JJ,I Comm%.jr ty bevelapr )erRt - Emails Jean ano Angela re. hadwicWBowers. 100fir AO 050 01131 2018 JJJ Cornmundy Development - CnaavocK.-'Bawers assessment agFeernenl 2.AC'' 00 00 o 5D AMOUNT DUE 14 00 TOTAL CURRENT WORK PRfVIOIJS BALANCE 012412018 Payment = thank you TOTAL AMOUNT DUE e I �i r'lv � �'ei � --K -1 iO) q Ll �'C-'4LC Ck - - I Afrr0urnis due aver 30 days w 1i bfi sLajec1 to a firanGe anarge of a per mor~Ih I;oi ail ann"I rz* of 6%) Mmkrum Yharge - 50 cents. 1600 5J] #3"Ll 16004 1.5000 8000 Boca 130 04 209600 2096-00 51,360.60 -1.364.60 $2000 Julie Cheney From: Wayne Oberg Sera: Friday, February 16, 2018 2:12 P To: Julie Cheney Subject: RE: Carnpbell Knutson Administration Legal Invoice for January $2,096.c)0 Okay, [ode EDA item to EDA. From: Julie Cheney Sent: Friday, February 16, 2018 1-35 P To: Wayne Oberg <Wayne.Oberg&rnontir-ello, mn,us> Subject: Campbell Knutson Ad ministration Legal Invoice for January$2,096.00 Wayne Attached 15 the current invoi{e from Campbell Kn utson for admi nastration legal services_ It has been reviewed by Jeff & Angela_ Okay to pay as coded 52,096,00? Thanks, fufie Cl c at.c} Finance Assistant City of Monticello 763-271-3205 Tu I i e. Ch encvG ci.mon tice110.mn.us AP@ ci,monticeJlo. mn,us M ti ll Eranarl correspondence to and from the City of Monticello government offices 1s subject to the Minnesota Government Data Practices Act and may be disclosed to third parties_ Julie Cheney From: Jirn Thares Sent: Tuesday, February 20, 2018 3.41 PM To: Julie Cheney Subject: RE: Campbell Knutson Jnv# 2348-OOOG 186 $2,096.00 Attachments: SKMBT_C75418022016570.pdf Julie, this iS fine. See coding ori the invoice. From: Julie Cheney Sent: Tuesday, February 20, 2018 3:18 PM To: Jim Thares Subject: FW; Campbell Knutson Inv# 2348-0OOG 186 $2,096.00 Jim I would like to include this invoice in the check run tomorrow if you can find a minute to look at the one line item - Thanks Julie From: Julie Cheney Sent: Friday, February 16, 2018 3,14 PM To: Jim Thares <Jim,Thares ci,monticello-rrrn.L.S> Subject: Campbell Knutson Inv#I 2348-OOOG 186 $2,096,00 Jim Please see attached Campbell Knutson invoice for administration legal services in January. Please see fine item for EDA for $160-00, Okay to code to 2 13-46301? Than k5, Finance Assistant City of fih n icello 763-271-3205 ,Tu Iie.Cheney ci-monticeelIo.mn-us AF!�? c i. mont i ceJ lo. mrI. us CrT� OF MO i Eo Errwil correspondence to and from the City of Monticello government offices is subject to the Minnesota Government Data Practices Act and my be disclosed to third parties- Page: 3 Kennedy a Graven, Chartered 200 outn SixM Street, Suite 471 Minneapolis. IVIN 55402 Monticello EDA January 31, 2018 t RC MN325-00037 255 East Broadway St. Througt January 31, 2018 For All Legal Services As Follows: Hours Amount 11212018 CBR Review emails, Interoffice conference; draft purchase 2.00 254.00 agreement 11212018 MNI Review 255 E Broadway PA (EDA acquisition) office 1.00 19000 corrfererfce with C Rockiitz regarding same 11312018 MNI Draft resolutiori approving PA: itinaflze FSA and circulate-, 080 152.00 phone oianuersatiun with J Thn res regarding need for planriin9 cnmmission resolution for EDA Jand acquisition and safes 11812018 MNI Draft planning corn misison resolution and circulate 0,80 57.00 1111J2478 MNI Prepare execution copy of PA. circulate. 0.30 57.00 111512018 MfVJ Office conference with D Rocklitz regardirEg closing 0.20 38.00 112512018 MNI Review title commitment Monticello 255 East Broadway 0.40 78.00 112912018 CBR Review We caarnmitment; draft objection letter 0.75 95.25 113112018 CSR Review seIIees closing docii men ts, revise deed and email 0 75 95.25 to Glaser Total Services: 1,014.50 For All Disbursements As Follows: Postage 1.21 Total Disbursements: $ 1.21 Total Services and Disbursements: $ 1,015.71 Julie Cheney From. Jim Thares Sent: Tuesday, February 20, 2018 4:23 PM To: Julie Cheney Subject: FW; Kennedy & Graven Invoices (4) Same coding issue for these four invoices. They should all be: 213-46301-430400. Just a slight tweak in difference, Thank you From: Jim Thares Sent: Tuesday, February 20, 7018 4;02 PM To: Julie Cheney Subject: RE: Kennedy & Graven Invoices (4) Julie, these are all okay_ Flease co& -as shown beievt+. From: Julie Cheney Sent: Tuesday, February 20, 2018 12;05 PM To: Jim Thares. Subject: Kennedy & Graven Invoices {4} Jim Attached are the following invoices from Kennedy & Graven, MN190-00101-- Genera I EDA $266.00 Codi tri: 2 13,4 6000 -430400 MN325-00037— 255 E Broadway $1,015.71 COC to, 213-46000-43040C) M N325-00036 — 22+4 E 4'' St $1,077.50 Cade to, 213-46000-430400 MN325-00035 — 103 Pine St $760,00 Code to: 213-46000-430400 Okay to pay? Please provide coding for each. Thanks, Julie 01elmy Finance Assistant City of Monticello 763-271-3205 Julie. henev ci_moaticello_mn.us APQc i-monti cello.mn.us AMon�itieflo Page. 2 Kennedy & Graven, Chartered 200 South Sixth Street, Suite 470 1 Minneapolis, MN 55402 G fonticella EDA4 January 31, 201$ c LI MN 25-00036 224 East 4th Street Through Jarruary 31, 2018 For All Legal Services As Follows. Hours Ar'nount 102018 CDR Review Minnesota court records; review and revise 2.00 254.00 purchase agreerr ant; review tiUt standards; interoffice confererxce; emails with client 31212018 IVTNI Draft 224 E 4th PA (EDA accluisitiorl) 1.00 190.00 11312018 MNI DfaPt resolution approving PA 0,60 114.00 11412018 VIII Phpne acrd email correspondence wi:h Seller's counsel 0.40 7600 regarding title issues for 224 E 4th: review objecrio(i letter 11412018 MNI Review vesting deed and finalize PA and resolution with 030 5700 correct legal description; circulere 11612018 MNI Draft planning comrnission resolution and circulate 0.40 76.00 111112018 MNI Prepare execution copy of PA; circu[ate 0.30 67.00 11161 018 CEIR Save and review tette commitment: interoffice confere+ice 0.50 tai 50 with M Ingram 11 W016 MtV I Office conference with C RockIitz regarding closing ani} 0.50 95.00 We issues 11 912018 MNI Monticello review vbject3on letter for 224 E 4th Street. 030 57,00 113412018 MNI Revise plannrng commission resolution per A Schurnann 0.20 3800 comments Total Services: 1,077-50 Total Services and Disbursements. S 1,077A0 Arlie Chene Frorn. Jim Thare5 Sent: Tuesday, February 20. 2018 4:23 PM To; Julie Cheney Subject: FW; Kennedy & Graven invoices (4) Same coding issue for these four invejL7es_ They should alf be= 2 13-46301-430400. Just a slight tweak in dffference. Thank you FrOM: IM Thares Sent' Tuesday, February 20, 2018 4:02 PM To: Julie Cheney Subject: RE. Kennedy & Graven Invoices (4) Julie, these are all okay. Please code as shown below. From: Julie Cheney Sent: Tuesday, February 20, 3018 12:05 PM To: Jim Thares Subject: Kennedy & Graven Invoices (4) Jim Attached are the following invoices from Kennedy & Graven, MN19"0101 — General EDA $266.00 Code to: 213.46000-43040D f+ N325-00037 —255 E Broadway $1,015,71 Cade to: 213-4601)0-430400 MN325-00036 — 224 E 4'h St $1,077.51} Code to. 213-46001 -430400 MN325-00035 — 103 Pine St $760.00 Cade ta, 213-46000-430400 Okay to pay? Please provide coding for ear -h_ Thanks, Finance Assistant City of Monticello 763-271-3205 JuJie-CherLcy@ci-manticello-mn.us AP ci.monticello,mn_u5 CAiY OF Micet 1 Page: 1 Kennedy & Graven, Chartered 200 South Sixth Street, Lite 470 Minneapolis, MN 55402 City of Mon ficeIIQ January 31, 2418 llftMN190-00101 General EDA Matters f Througf January 31, 2018 For All Legal Services As Follows_ Hours 11812018 MNI Phone call with J Thares regarding use of EDA funds for 0.20 busine5s irnprcv8nnent program and any relocation Iu�5Ues 1116/2018 MNI Monticello monthly finance call. 1.20 Total Services: Amount 38.00 228.00 265.00 Total Services and Disbursements-. $ 266.00 Julie From: Jim Thares Sen[. Tuesday, February 20, 2018 4:23 PM To- Julie Cheney Subject: FW, Kennedy & Graven Invoices (4) Sanne coding issue for these four invoice„, They should a I I be: 213.4 6 301-4 30400, Just a slight tweak in differer)re- Thank you From: Jim Thares Sent: Tuesday, February 24, 20184:02 PM To: Julie Cheney Subject: RE: Kennedy & Graven Invoices (4) Julie, these are all okay. Please code as shown below. From: ,Julie Cheney Sent: Tuesday, February 20, 2018 12:05 PM TO: Jim Thares Subject: Kennedy & Graven Invoices (4) Jilt Attached are the following invoices From Kennedy &. Graven- MN190.00103 —General EDA S 266-00 Code to, 2 13 -46DOO-4 3 0400 MN325-00037 — 255 E Broadway $1,015,71 Code t -. 213-46000-430400 MN325.00036— 224E 4'” St 51,077.50 Code to; 213-46000-430400 MN325-00035— 103 Pine St 5760.00 Codeto' 213-46(100-43040D Okay to pay? Please provide cod ing for each. Thanks, Julie C'heney Finance Assistant City of Morlticello 763-271-3205 Julie-Chenf-y@r,i.rnoniir-ello.mn.us APQ ci.rnonticeIIo.rnn-us T? �1t �4Monticello 1 Page: 1 Kennedy & Graven, Chartered 200 South Sixth Street, Suite 470 Minneapolis, MN 55402 Monticello EDA JanuaFy 31 2018 UI MN325-00035 103 Pine St - Th rough t-Through January 31. 2018 For All Legal Services As Fallows: Hours Amount 1191 018 MNI Monticel.lo phone call with J Thares regarding Frosaie 0.40 7600 property and possib.le acqu+sitror% scenarios 111612018 MNI Monticello rely question regarding Frastie proposed 0.80 152.00 purchase 1!2512018 iVINI Review and revise Monticello LOI for Frostie acquisition D.SO 152.00 113012013 MtVI Draft Monticello Froslie PA 2.00 380.00 Total Services: $ 764-00 Total Services and Disoursernents: 5 760.00 Julie Cherie From: J m Thares Sent: Tuesday, February 20, 2018 4-23 PM To: Julie Cheney Subject: FW: Kennedy & Graven Invoices (4) Same Coding issue for these four invoices, They should all be, 213-46301.43WO, Just a sight tweak in difference, Thank you From: Jim Thares Sent: Tuesday, February 20, 2018 4M PM To: Julie Cheney Subject: RE; Kennedy & Graven Invoices (4) Julie, these are all okay. Please code a5 shown below. From: Julie Cheney Sent: Tuesday, February 20, 2018 12:05 PM TO: Jim Thares Subject: Kennedy & Graven Invoices (4) Jim Attached are the following invoices from Kennedy & Graver~: MN190-00101—General EDA $266.00 Code to- 213-460 0.430400 MN325-00037 — 255 E Broadway $1,015,71 Code to: 213-460N-430400 M N325-00036 — 724E 4"f' St $1,077.50 Code to= 213-46000-480400 MN325-00035 — 303 Pine 5t $760.00 Code to: 2 1 3-46000-4 304 00 Okay to pay? Please provide coding for each, Thanks, h1he (-'heney Finance Assistant City of Mgnticella 763-271-3205 Ju I"e.Cheney@ti.rnonticello_mr".us AP e ci_Mont icelIo.mn.us Monticello I Julie Chene From: BuiIdium@SUNseye411.corn Sent= Friday, February 9, 2018 3:16 A To, AP Subject: Lease statement for Broadway Parking Easemert - COMMERCIAL - 2 as of 219120i8 6ua15,eye Property Management Lease statement as of 2/9/2018 City of Monticello Economic Development Authority 36 Lake St Suite 500 Big Lake, Nils 55309 Date term Prior balance 1212912017 Payment 111/2018 Common Area Maintenance 21112018 Common Area Maintenance 311!2018 Common Area Maintenance Account #: 00408914 Amount Balance $0.04 $121,64 $23,01 $121.60 $146.21 $121.60 $266.81 Balance due: $266.81 Payment is due by the 29th of the month_1 C7 C) Manage your account online: http:!{builseyepr(�perties.managebuilding.coTn Bullseye Property Management 763-295-6566 admin@a bullseye4l Lcom I Accounts Payable Transactions by Account User: Julie.Cheney Printed: 02/16/2018 - 11:17AM Batch: 00201.02.2018 Account Number Vendor Description Monticello GL Date Check No Amount PO No 213-46301-438200 CITY OF MONTICELLO 7256-003 - 349 Broadway W EDA 12/31/2017 0 13.66 Vendor Subtotal for Dept: 46301 13.66 213-46301-443990 US BANK CORPORATE PMT SYS Target - Food for EDA Special Meetin 02/27/2018 0 24.99 Vendor Subtotal for Dept: 46301 24.99 The preceding list of bills payable was reviewed and approved for payment. Date: 3/14/18 Approved by Jon Morphew - Treasurer Subtotal for Fund: 213 38.65 Report Total: 38.65 AP -Transactions by Account (02/16/2018 - 11:17 A" Page 1 Debbie Davidson From: noreply@merchanttransact.com Sent: Saturday, January 6, 2018 10:09 AM To: AP Subject: Your bill from City of Monticello, MN is ready. Attachments: 1118WEBINSERTS.pdf City of Monticello, MN 505 Walnut St, Ste 1 Monticello, MN 55362 763.271.3228 8AMto4:30PM Account Information Account: Name: Service Address: Service Period: Billing Date: Due Date: Meter Reading Serial 53321062 Current Charges 007256-003 MONTICELLO EDA (213-46301) 349 BROADWAY W 12/1/2017 to 12/31/2017 (31 days) 1/5/2018 2/1/2018 Previous Reading Current Reading Date Reading Date Reading 12/1/2017 188496 1/1/2018 188496 Water: Water: CITY WATER - NON-TXBL Water: ACH Credit - Auto Pay Water: E -Bill Credit Sewer: SEWER - COM/MONTHLY Sewer: SW DISCHRG FEE - COM MONTHLY 2% Total Current Charges: Bill Summary Previous Balance: Payments Received: Adjustments: Current Charges: * Total Amount Due by: 2/1/2018 * This was the amount due at the time of billing. To view your amount due at the current time and make a payment click here. Auto payment is setup for this customer account, do not pay. 1 Cons 0 $0.00 $6.45 ($0.50) ($0.50) $8.05 $0.16 $13.66 $13.66 $13.66 $0.00 $13.66 $13.66 Vendor. � Date of"I'rarnsctiott CITY OF MONTICELLO City Hall Card Transaction Please attach the invoice/receipt and any other avaiiabie documentations to this form. To be corn pleted by purchaser; Amount fArD- Cirde purchaser name: ,.Vicki Leerhoff jpff or Neill' Wayne Oberg Sarah Rathiisberger Jennifer Schreiber Angela Schlim;jnn Jim Thares Jacob Thirna der f y Employee Signature Mite approved Spetitl Project 4 or Description Circle department code: 101-41110 101-41310 101-41410 101-41520 101.41800 101-41910 101-41920 101-41940 213-45500 213-46301 Circle expense code: 421994 431950 431490 432200 433100 443300 443 7W 443990 Other City Council Administration Ejections finance Duman Resources Planning and Zoning Data Proce55ing City Hall Economic Development HRA general Operating Supplies Newsletter Services Miscellaneous Prof Services Postage Travel/Training Expense Dues Member5h-Pp & 5ubscrip Licenses and Permits min. Other Expense ELA -tL hrly Ge)TARGET EXPCCT MORE PAY LESS; MONTICELLU - X63-271-1100 01110/2018 07=30 Art EXKRES 04/10i18 GROCERY 8781300119 Ai' APPETIZER FN $24,99 SUBTOTAL $21.99 NOTAL 4-0909 *7045 VISA CHARGE $24.99 AID ;A00MOM03101001 VISA CRED17 RECO2 81]10-2/80-0092-9740-R VCO#751-25-340 No, al shopping trips are alike. m) Shale feedback. rC * H, 1 r iiake your Taryat Rw baiter. T ake 9 minute s+arvey abOL11 tndav' S tr l4}' lrkfQrmtget,con User W. 7 �8 9782 0990 pa,ssd ; 742 592 CUENTEN09 EN ESPANOL Pl+�ase take this sur vey ,ri-chi n 7 days- Accounts Payable Transactions by Account User: Debbie.Davidson Printed: 03/01/2018 - 11:18AM Batch: 00215.02.2018 Account Number Vendor Description Monticello GL Date Check No Amount PO No 213-46522-438100 XCEL ENERGY ZCULPS-EXPENS - 51-0623082-8 -' 02/28/2018 0 17.31 Vendor Subtotal for Dept:46522 17.31 The preceding list of bills payable was reviewed and approved for payment. Date: 3/14/18 Approved by Jon Morphew - Treasurer Subtotal for Fund: 213 17.31 Report Total: 17.31 AP -Transactions by Account (03/01/2018 - 11:18 AND Page 1 Xcel Energyo RESPONSIBLE BY NATURE® YOUR MONTHLY ELECTRICITY USAGE J F M A M J J A S 0 N D J DAILY AVERAGES Last Year Temperature 16° F Electricity kWh 2.1 Electricity Cost $0.74 QUESTIONS ABOUT YOUR BILL? See our website: xcelenergy.com Email us at: Customerservice@xcelenergy.com Please Call: 1-800-481-4700 Hearing Impaired: 1-800-895-4949 Fax: 1-800-311-0050 Or write us at: XCEL ENERGY � � 1 PO BOX 8 575452461 EAU CLAIRE WI 54702-0008 XcelEnergy® NORTHERN STATES POWER COMPANY Page 1 of 2 SERVICE ADDRESS ACCOUNT NUMBER MONTICELLO EDA 51-0623082-8 02/02/2018 349 W BROADWAY ST MONTICELLO, MN 55362-9356 STATEMENT NUMBER STATEMENT DATE � � 1 575452461 01/05/2018 $17.31 SUMMARY OF CURRENT CHARGES (detailed charges begin on page 2) Electricity Service 12/03/17 - 01/04/18 7 kWh $17.31 Current Charges $17.31 ACCOUNT BALANCE Previous Balance As of 12/03 Payment Received Auto Pay 01/02 Balance Forward Current Charges Amount Due INFORMATION ABOUT YOUR BILL Thank you for your payment. RETURN BOTTOM PORTION WITH YOUR PAYMENT • PLEASE DO NOT USE STAPLES, TAPE OR PAPER CLIPS ACCOUNT NUMBER I DUE DATE $17.31 -$17.31 CR $0.00 $17.31 $17.31 1 51-0623082-8 1 02/02/2018 1 $17.31 1 Automated Bank Payment Your bill is paid through anautomated bankpayment plan. 1 IWA 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 ------ manifest line --------- 18 19 20 21 22 23 24 ..I�III"'I''�I'IIIIIII�II�I'II�'lll�l��ll�lll�l�l'I�IIII'I��' 25 26 27 28 MONTICELLO EDA 505 WALNUT ST STE 1 MONTICELLO MN 55362-8822 I..I�III"'I''�I'lllllll�ll�l'II�'lll�l��ll�lll�l�l'I�IIII'I��' XCEL ENERGY P.O. BOX 9477 MPLS MN 55484-9477 31 51020218 06230828 0000000173100000001731 Xcel Energy LEEP HEATED GARAGES WARM. Unit heaters offer heating technology that reduces heat lass significantly during winter months. Take advantage of infrared, condensing and non -condensing unit heater rebates to save energy and money. Visit xcelenergy.coin/ Heat ingEfficiency to learn more. Page 2 of 2 SERVICE ADDRESS ACCOUNT NUMBER 1 A MONTICELLO EDA 349 W BROADWAY ST MONTICELLO, MN 55362-9356 51-0623082-8 ;Z/:02/2018 STATEMENT NUMBER STATEMENT DATE $10.00 575452461 01/05/2018$17.31 $0.56 SERVICE ADDRESS: 349 W BROADWAY ST MONTICELLO, MN 55362-9356 NEXT READ DATE: 02/06/18 ELECTRICITY SERVICE DETAILS PREMISES NUMBER: 303657358 INVOICE NUMBER: 0705122826 ELECTRICITY CHARGES RATE: Sm Gen Svc (Metered) DESCRIPTION USAGE UNITS RATE CHARGE Basic Service Chg $10.00 Energy Charge Winter 7 kWh $0.079650 $0.56 Fuel Cost Charge 7 kWh $0.025678 $0.18 Decoupling Adj 7 kWh -$0.000291 $0.00 Affordability Chrg $0.98 Resource Adjustment $0.09 Subtotal $11.81 City Fees $5.50 Total $17.31 INFORMATION ABOUT YOUR BILL Effective January 1, 2018, the monthly Affordability Charge on your electric bill that funds Low Income Energy Discount Programs increased by $0.06 to provide assistance to qualifying senior and disabled customers. For an average non -demand customer, 69% of your bill refers to power plant costs, 14% to high voltage line costs, and 17% to the cost of local wires connected to your business. For an average demand customer, 79% of your total bill refers to power CM plant costs, 13% to high voltage lines, and 8% to the cost of local wires connected to your business. To Small Power Producers and Cogenerators Federal and state laws aqui re Xcel Energy and other uti litiOS to buy all electric energy that qualified small power producers and cogeneretom offer for sale. Qualified facilities may be interconnected with our system for this purpose- However, in Minnesota Xcel Energy is not required to make pu rchoses f rom qualified facilities which are larger than 20 megawatts, Sme11 power producers generate electricity using a renewable resource at waste product as fuel= garbage, peat, woad by-products, wind, Water Or sun. Cogeneretors produce sequentially hath electricity and useful heat energy. Theso facilities may use a non-renewable fuel, such as oil, natural gas or coal - An example is a paper mill that makes steam for e1 ectrica I generation and, secondarily, for paper production - The Minnesota Public Utilities Commission regulates the purchase price and service interconnection requirements between qualifying facilities and utilities- The Commission also resolves disputes that might arise. Customers who are interested in parallel gwerati on options, may obtain Xcel Energy's interconnection guidelines materials for information on interconnection requirements. EDA: 03/14/18 4d. Consideration of approving Escrow Agreement between Michael and Kathleen Froslie, the City of Monticello EDA and Preferred Title in connection with the EDA Purchase of 103 Pine Street (JT) A. REFERENCE AND BACKGROUND: This item is to ask the EDA to consider approving the Escrow Agreement between Michael and Kathleen Froslie (Seller) and the City of Monticello EDA (Buyer) and Preferred Title (Escrow Agent) in connection with the EDA's acquisition of property located at 103 Pine Street. Establishing an Escrow Account is a requirement of the Purchase Agreement executed by the Seller and Buyer for this property. The purpose of escrowing funds is to ensure final management expenses and utility bills are funded at the time of property vacate and also allow the EDA to pay legal fees related to a potential eviction proceeding to enforce property exit timelines. If the Seller vacates the property and performs all required property management responsibilities as described in the Lease and Property Management Agreement, then all escrow funds will be returned to them upon verification by the Escrow Agent. Attached is the proposed Escrow Agreement for review. The document was drafted by the EDA attorney. It has been reviewed by the Seller and the Escrow Agent with no suggested changes. If the EDA approves the Escrow Agreement, it will be executed by all signatory parties at the property closing transaction. Al. STAFF IMPACT: There is a limited staff impact in considering the Escrow Agreement. The EDA attorney drafted the document and in-house staff reviewed it and prepared the staff report for EDA consideration. The Escrow Agreement is a required document under the terms of the fully executed Purchase Agreement for 103 Pine Street. A2. BUDGET IMPACT: The funds to pay for the legal fees required to draft the document are included in the 2018 EDA General Fund budget under a line item for "Legal Fees". The estimated cost to prepare the document is $450.00 +/-. B. ALTERNATIVE ACTIONS: Motion to approve Escrow Agreement related to the purchase of 103 Pine Street as presented. 2. Motion to deny approval of the Escrow Agreement related to the purchase of 103 Pine Street. 3. Motion to table consideration of the Escrow Agreement and direct changes or amendments to the document. C. STAFF RECOMMENDATION: Staff recommends Alternative 1. The Escrow Agreement is a required term of the Purchase Agreement executed by the Seller and the Buyer. Entering into the Escrow Agreement will safeguard the potential of having unexpected property liabilities and expenses be borne by the EDA from its own funds. It will also cover the potential to pay EDA: 03/14/18 for legal fees that may be necessary if an eviction proceeding is needed to force the Seller to vacate the property by the June 30, 2018 deadline. The closing date of March 15, 2018 has already been scheduled for this transaction. D. SUPPORTING DATA: a. Escrow Agreement W ESCROW AGREEMENT THIS AGREEMENT entered into this day of March, 2018, by and between MICHAEL W. FROSLIE AND KATHLEEN A. FROSLIE (together, "Seller"), CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY ("Buyer"), and PREFERRED TITLE, INC. ("Escrow Agent" or "Agent"). IDNcum I K-111 y A. Seller and Buyer have entered into a Purchase Agreement dated February 14, 2018 ("Purchase Agreement") for the sale of property located at 103 Pine Street, Monticello, Minnesota and legally described on the attached Exhibit A (the "Property"). B. The parties desire to close the sale of the Property on March 15, 2018. C. Pursuant to Section 11 of the Purchase Agreement, the parties desire to establish an escrow for the purpose of holding certain costs payable by the Seller. AGREEMENT The parties agree as follows: Delivery of Possession. Seller shall deliver possession of the Property to Buyer on or before June 30, 2018 (the "Vacation Date") in accordance with the Purchase Agreement entered into by Seller and Buyer. 2. Escrow. (a) Upon closing and execution of this Agreement, Seller agrees to deposit into escrow the sum of $4,000 (the "Escrowed Funds"), to be held by Agent in a non- interest bearing account. (b) Upon confirmation by Buyer that Seller and any tenants of Seller have vacated the Property, the Buyer shall notify the Agent of such vacation in writing (the "Notification"). Agent shall release the Escrowed Funds pursuant to the terms and conditions of paragraphs 2(c) 2(d), and 2(e) hereof. (c) The Buyer shall include in the Notification notice of any Event of Default occurring under the Purchase Agreement, including without limitation (i) the failure of Seller or any tenants of Seller to vacate the Property on or before the Vacation Date, (ii) Seller's nonperformance of Seller's property management responsibilities under the Property Management Agreement between the Buyer and Seller, dated as of the date hereof, or (iii) Seller's failure to pay any utility bills unpaid and outstanding as of the Vacation Date. (d) Upon a Notification from Buyer that includes notice of an Event of Default by Seller, Agent shall retain the Escrowed Funds until Agent receives a further Notification from Buyer that either (i) Seller has cured all Events of Default at Seller's sole expense, in which case Agent will deliver to Seller the Escrowed Funds on deposit no later than five days following receipt of such further Notification from Buyer; or that (ii) Buyer has expended funds to cure any Event 518402v1 MNI MN325-35 of Default by Seller (the "Buyer Expenditures"), along with evidence of the Buyer Expenditures, in which case Agent will deliver to the Buyer an amount of the Escrowed Funds on deposit equal to the Buyer Expenditures, and will deliver to the Seller the Escrowed Funds less the Buyer Expenditures, no later than five days following receipt of such further Notification from Buyer. (e) If no Event of Default by Seller has occurred, the Agent will deliver to the Seller the Escrowed Funds on deposit no later than five days following receipt of the Notification from Buyer. Escrow Agent Liability. The sole duties of Escrow Agent shall be those described herein, and Escrow Agent shall be under no obligation to determine whether the other parties hereto are complying with any requirements of law or the terms and conditions of any other agreements among said parties. Escrow Agent may conclusively rely upon and shall be protected in acting on any notice believed by it to be genuine and to have been signed or presented by the proper party or parties, consistent with reasonable due diligence on Escrow Agent's part. Escrow Agent shall have no duty or liability to verify any such notice or to verify any amounts deducted from the Escrowed Funds, and its sole responsibility shall be to act expressly as set forth in this Escrow Agreement. 4. Notices to be sent to the parties to this Agreement shall be sent by mail or personal delivery to: SELLER: Michael W. Froslie and Kathleen A. Froslie 103 Pine Street Monticello, MN 55362 BUYER: City of Monticello Economic Development Authority Attn: Executive Director 505 Walnut Avenue, Suite 1 Monticello, MN 55362 With a copy to: Kennedy & Graven, Chartered Attn: Martha Ingram 470 U.S. Bank Plaza 200 South Sixth Street Minneapolis, MN 55402 AGENT: Preferred Title, Inc. Attn: 113 West Broadway Monticello, MN 55362 5. This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same instrument. (The remainder of this page is intentionally blank.) 2 518402v1 MNI MN325-35 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date written above. SELLER: Michael W. Froslie Kathleen A. Froslie BUYER: CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY By Its President By: Its Executive Director ESCROW AGENT: PREFERRED TITLE, INC. By: Its 518402v1 MNI MN325-35 Exhibit A Legal Description of Property Lots 11 and 12, Block 52, City or Townsite of Monticello, Wright County, Minnesota; and that part of Lot 10, Block 52, City or Townsite of Monticello, Wright County, Minnesota described as follows: beginning at the northeasterly corner of said Lot 10; thence southerly along the southeasterly line of said Lot 10, a distance of 26.00 feet; thence westerly to a point on the northwesterly line of said Lot 10 distant 26.00 feet southerly of the northwesterly corner of said Lot 10; thence northerly along said northwesterly line to said northwesterly corner; thence easterly along the northeasterly line of said Lot 10 to the point of beginning. Together with an ingress and egress easement across the southwesterly 10.00 feet of the northeasterly 3 6. 00 feet of said Lot 10, as measured at a right angle to and parallel with the northeasterly line thereof. PID: 155010052110, 155010052120, and 155010052102 Located on land having a street address of: 103 Pine Street, Monticello, MN 4 518402v1 MNI MN325-35 EDA: 03/14/18 4e. Consideration of approving Lease and Property Management Agreement between Michael and Kathleen Froslie and the City of Monticello EDA in connection with the EDA Acquisition of 103 Pine Street (JT) A. REFERENCE AND BACKGROUND: This item is to ask the EDA to consider approving a Lease and Property Management Agreement between Michael and Kathleen Froslie (Seller) and the City of Monticello EDA (Buyer) in connection with the EDA's acquisition of property located at 103 Pine Street. Establishing a Lease and Property Management Agreement is a requirement of the Purchase Agreement executed by the Seller and Buyer for this property. The purpose of the Agreement is to fulfil the relocation requirements under the Uniform Relocation Act (URA). Per the URA, tenants are allowed to stay in the property for least 90 days from transfer of ownership to the EDA. Under the Lease and Property Management Agreement, the Seller will act as the property manager and therein be responsible for operating the property, monitoring tenant behavior and activities, responding to their needs as well as paying all property operating expenses such as building and system maintenance and repair costs, all utility expenses (i.e. water, sewer, garbage, heat, electrical and internet) property insurance, real estate taxes and any tenant enforcement actions deemed necessary by the property manager. Per the Agreement, the EDA is not responsible for collecting rents, nor will it guarantee the Seller receives any rent payments, nor will it enter into any rent collection action through the courts. Under the Agreement, the Seller (and the existing tenants) are allowed to occupy the property and pursue their respective business endeavors from the closing date of March 15, 2018 through June 30, 2018. If the Seller performs all required property management responsibilities as described in the Agreement and thereafter vacates the property by June 30, 2018, then the funds held in escrow (Escrow Agreement) will be returned to the Seller upon verification by the Escrow Agent. Attached is the proposed Agreement for review. The document was drafted by the EDA attorney. It has been reviewed by the Seller with no suggested changes. If the EDA approves the Agreement, it will be executed by both parties at the property closing transaction. Al. STAFF IMPACT: The EDA attorney drafted the Lease and Property Management Agreement. In-house staff reviewed the document and prepared the staff report to which the Agreement is attached. The Agreement is a required document under the terms of the fully executed Purchase Agreement for 103 Pine Street. A2. BUDGET IMPACT: The funds to pay for the legal fees required to draft the document are included in the 2018 EDA General Fund budget under a line item for "Legal Fees". The estimated cost to prepare the document is $850.00 +/-. EDA: 03/14/18 B. ALTERNATIVE ACTIONS: 1. Motion to approve Lease and Property Management Agreement related to the purchase of 103 Pine Street as presented. 2. Motion to deny approval of the Lease and Property Management Agreement related to the purchase of 103 Pine Street as presented. 3. Motion to table consideration of the Lease and Property Management Agreement and direct changes or amendments to the document. C. STAFF RECOMMENDATION: Staff recommends Alternative 1. Executing the Agreement will provide a written understanding regarding the rights of occupancy by the Seller, per the URA, while also clearly defining a vacate date. It also spells out property management duties, responsible parties for maintenance and repair expenses and usual/normal operating expenses. The document is required per the terms of the fully executed Purchase Agreement. The property transaction is already scheduled for closing on March 15, 2018 and will be signed by the parties at that time. D. SUPPORTING DATA: a. Property Management and Lease Agreement 2 PROPERTY MANAGEMENT AND LEASE AGREEMENT THIS PROPERTY MANAGEMENT AND LEASE AGREEMENT ("Agreement") is entered into and made as of the 15th day of March, 2018 by and between the CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY, a public body corporate and politic and political subdivision of the State of Minnesota ("Landlord"), and MICHAEL W. FROSLIE AND KATHLEEN A. FROSLIE, married to each other ("Tenant"). The parties mutually agree as follows: 1. LEASED PREMISES. Subject to the terms and conditions of this Agreement, Landlord leases to Tenant and Tenant rents from Landlord, the commercial building located on the property at 103 Pine Street, Monticello, MN 55362 (the "Property"), legally described in the attached Exhibit A, hereinafter referred to as the "Leased Premises." 2. TERM. The term of this Agreement (the "Term") shall be for a period of 107 days, commencing March 15, 2018 (the "Commencement Date"), and ending midnight on June 30, 2018 (the "Expiration Date"), unless this Agreement shall be sooner terminated as hereinafter provided. 3. RENT. No rent shall by payable by Tenant to Landlord, provided that Tenant shall pay the amounts described in Paragraph 3(a), all of which are hereinafter collectively referred to as the "Charges," and the obligation of the Tenant to pay said Charges through the Expiration Date or earlier termination shall survive the termination of this Agreement. fq) Charges. Except as set forth in this Agreement, and starting on Commencement Date, Tenant shall be solely responsible for paying the operating costs of the Leased Premises under the terms of this Agreement (as further described in this Agreement) including, but not limited to, Utility Charges described in Paragraph 5(a), Insurance, Taxes and Assessments subject to the terms and conditions of Paragraph 6 of this Agreement, Operating Charges described in Paragraph 4(b), and any other direct out of pocket costs and expenses of maintenance, repair, replacement and care of the Leased Premises and Property, whether attributable to the activities of Tenant or of any sublessee of Tenant. bb) Service Charge. Tenant's failure to make any monetary payment required of Tenant hereunder within fifteen (15) days of the due date therefor shall result in.the imposition of a service charge for such late payment in the amount of Seventy-five and No/100 Dollars ($75.00). In addition, any sum not paid within thirty (30) days of the due date therefor shall bear interest at a rate equal to the lesser of eighteen percent (18%) or the maximum amount permitted by law from the date due until paid. 4. OPERATING CHARGES. (a) Tenant shall pay to Landlord, as a portion of the Charges, Operating Charges as hereinafter defined. Within ten (10) business days after the termination of this Agreement, Landlord shall notify Tenant of the actual Operating Charges for the Term of this Agreement and provide Tenant a statement thereof in reasonable detail. Within ten (10) days after such notice, Tenant shall pay to Landlord the actual amount of the Operating Charges as shown on such statement. Tenant's obligation to pay Operating Charges through the Termination Date shall survive the termination of this Agreement. Operating Charges are actual and direct out of pocket expenses incurred by Landlord as described in Paragraph 4(b). (b) "Operating Charges" as used herein shall mean all direct sums expended or obligations incurred by Landlord with respect to the Property, whether or not now foreseen, determined on an accrual basis (including reasonably foreseeable expenditures not occurring annually), including, but not limited to, the actual costs of third party contractors and/or other third party entities providing services; inspection fees; and legal fees incurred in the maintenance and operation of the Property; materials and supplies, which materials and supplies were used in or charges were incurred in maintenance and operation of the Property; repairs, maintenance and operation include, but are not limited to, parking lot lighting, replacements respecting the Leased Premises and the Property, including costs of materials, supplies, tools and equipment used in connection therewith, which is necessary as a result of Tenant's use, costs incurred in connection with the operation, maintenance, repair, replacing, inspection and servicing (including maintenance contracts, if any) of mechanical equipment and the cost of materials, supplies, tools and equipment used in connection therewith, all other expenses and costs of every kind and nature necessary or desirable to be incurred for the purpose of operating and maintaining of the Property and Leased Premises, which Tenant is obligated to pay under the terms of this Agreement, due to the failure of Tenant to pay such costs when due. 5. UTILITIES AND SERVICES. (a) Utility Charges. Tenant shall be solely and exclusively responsible for the actual cost of the following utilities and any other building services necessary for the Property and Leased Premises as may be required by law or directed by governmental authority ("Utility Charges") and insurance cost which shall be paid to Landlord as Additional Rent: i. Cost of all heating, ventilation and air conditioning of the Building including electrical and gas; ii. Cost of all electricity for lighting and operating business machines and other equipment in the Building; iii. Cost of all gas; iv. Cost of all water and sewer; V. Cost of FiberNet Monticello utility services; vi. Cost of security system; vii. Costs of refuse and recycling services; viii. Cost of all replacement of all lamps, bulbs, starters and ballasts used in the Building; ix. Cost of the "all risk" insurance carried by the Landlord on the Building as hereinafter set forth. (b) Additional Services. If Tenant requests any other utilities or building services in addition to those identified above the cost thereof shall be borne by Tenant, who shall reimburse Landlord monthly for the same as provided in this Agreement. (c) Interruption of Services. Tenant understands, acknowledges and agrees that any one or more of the utilities or other building services identified above may be interrupted by reason of accident, emergency or other causes beyond Landlord's control, or may be discontinued or diminished temporarily by Landlord or other persons until certain repairs, alterations or improvements can be made; that Landlord does not represent or warrant the uninterrupted availability of such utilities or building services; and that any such interruption shall not be deemed an eviction or disturbance of Tenant's right to possession, occupancy and use of the Leased Premises or any part thereof, or render Landlord liable to Tenant in damages by abatement of rent or otherwise, or relieve Tenant from the obligation to perform its covenants under this Agreement. 6. TAXES. "Taxes" shall mean all real estate taxes levied or assessed upon or with respect to the land or improvements comprising the Property, including the Leased Premises, in 2018 for collection in 2019. If Tenant fails to vacate the Leased Premises by the Termination Date of this Agreement, Tenant shall be solely liable for payment of the Taxes. 7. LEASEHOLD IMPROVEMENTS. Tenant shall not be authorized to make any leasehold improvements to the Leased Premises ("Tenant Improvements") during the Term of this Agreement. 8. USE OF THE LEASED PREMISES fa) Specific Use / "As is" Basis. The Leased Premises shall be occupied and used exclusively for Tenant's business activities and related services incidental thereto, and shall not be used for any other purpose, without written permission of the Landlord. Tenant hereby accepts the Leased Premises on an "as is" basis without any representations or warranties by Landlord as to its fitness for Tenant's business or use or for any other particular purpose except as expressly set forth herein. (b) Covenants Regarding Use. In connection with its use of the Leased Premises, Tenant agrees to do the following: (i) Tenant shall use the Leased Premises and conduct its business thereon in a safe, careful, reputable and lawful manner; shall keep and maintain the Leased Premises in as good a condition as they were when Tenant first took possession thereof, ordinary wear and tear excepted, and shall make all necessary repairs to the Leased Premises other than those which Landlord is obligated to make as provided elsewhere herein. (ii) Tenant shall not commit, nor allow to be committed, in, on or about the Leased Premises any act of waste, or use or permit to be used on the Leased Premises any hazardous substance, equipment or other thing which might cause injury to person or property or increase the danger of fire or other casualty in, on or about the Leased Premises; permit any objectionable or offensive noise or odors to be emitted from the Leased Premises; or do anything, or permit anything to be done, which would, in Landlord's opinion, disturb or tend to disturb the owners or tenants of any adjacent buildings. (iii) Tenant shall not use the Leased Premises, nor allow the Leased Premises to be used, for any purpose or in any manner which would, in Landlord's opinion, invalidate any policy of insurance now or hereafter carried on the Leased Premises or increase the rate of premiums payable on any such insurance policy. Should Tenant fail to comply with this covenant, Landlord may, at its option, require Tenant to stop engaging in such activity or to reimburse Landlord for any increase in premiums charged during the term of this Agreement on the insurance carried by Landlord on the Leased Premises and attributable to the use being made of the Leased Premises by Tenant. Lc,) Compliance with Laws. Tenant shall not use or permit the use of any part of the Leased Premises for any purpose prohibited by law. 9. ASSIGNMENT AND SUBLETTING; PROPERTY MANAGEMENT. (a) Assignment; New Leases. Tenant may not assign or otherwise transfer its interest in this Agreement or sublet the Leased Premises or any part thereof without Landlord's written consent. Any sublease of the Leased Premises must be consistent with Tenant's use of the Leased Premises. Any sub -leases must terminate no later than June 30, 2018. (b) Collection of Rents. Tenant shall collect all rents due from sublessees during the Term of this Agreement, and shall render to Landlord a monthly accounting of rents received and Charges paid. Landlord expressly agrees and acknowledges that all rents collected by Tenant are solely for the benefit of Tenant and that Landlord has no right to any rents collected by Tenant during the term of this Agreement. Tenant expressly agrees and acknowledges that (i) rents collected from sublessees during the term of this Agreement shall constitute Tenant's sole compensation for property management duties carried out by Tenant; and (ii) Charges payable during the Term of this Agreement and exceeding the amount of rents collected from sublessees are the sole responsibility of Tenant. (c) Management of Sublessees. Tenant shall monitor the business activities of any sublessees and shall report any unlawful activities by reporting such activities to the appropriate legal authorities. Tenant agrees that Tenant is solely responsible to pursue payment of sublessee rents and/or damages during the Term of this Agreement. (d) Liability of Tenant. Tenant agrees to hold harmless the Landlord from, and to defend Landlord against, any and all claims, charges, debts, demands and lawsuits arising from Tenant's management of the Leased Premises and sublessees. Tenant shall pay Tenant's own legal fees in the event of any dispute with sublessees arising from or relating to Tenant's management of the Leased Premises and has sole liability for injury on or about the Leased Property which may be suffered by any of Tenant's employees, guests, or sublessees. 10. SIGNS. Tenant shall not inscribe, paint, affix or display any signs, advertisements or notices on the Leased Premises or in the Leased Premises and visible from outside the Leased Premises, except for such signage, advertisements or notices as Landlord at Landlord's discretion specifically permits by written consent. All signs shall comply with all ordinances, rules and regulations of the Landlord. 11. REPAIRS, MAINTENANCE, ALTERATIONS, IMPROVEMENTS AND FIXTURES. (a) Tenant shall maintain the exterior walls (including glass), roof and foundation of the Building. (b) Except as set forth herein, Tenant shall, at its expense, make any necessary repairs to the Leased Premises and every part thereof, ordinary wear and tear excepted, including the heating, air conditioning, electrical and plumbing equipment and facilities servicing the Leased Premises and, such other repairs which may be required by reason of acts or negligence of Tenant, its sublessees, agents, employees, customers or invitees, or the particular nature of Tenant's use of the Property. Tenant shall be responsible for repairing any damage to the Leased Premises caused by the installation or moving of Tenant's furniture, equipment and personal property. (c) Tenant shall not defer any repairs or replacements to the Building or Property by reason of the anticipated expiration of the Term. If Tenant fails to perform the maintenance and repair as required herein the Landlord, at Landlord's option, may elect to perform all or part of the maintenance, repairs and servicing which is the obligation of the Tenant hereunder with respect to the Leased Premises, in which event the costs thereof shall be at Landlord's option either billed directly to and paid by Tenant or included in Operating Charges. (d) Except as otherwise provided herein, in the event that, at the request of Tenant, Landlord, at its option, performs any maintenance, repairs or servicing of the Leased Premises which is the obligation of Tenant hereunder, then Tenant shall pay Landlord directly therefor. In the event there is any warranty in effect in connection with repairs or replacements made by Tenant and if Landlord is unwilling to pursue the warranty claim, then Tenant shall have the right to pursue the warranty claim in connection with the repair and/or replacement made by Tenant. (e) Tenant shall be responsible for the maintenance and repair and good working order and condition of the walks, driveways, parking lots and landscaped areas adjacent to the Leased Premises including mowing and the removal of snow and all costs associated therewith. (f) Upon expiration or earlier termination of this Agreement, Tenant shall surrender the Leased Premises to Landlord broom clean and in good condition and repair, normal wear and tear excepted. (g) To the extent that any structural component of the Building needs to be replaced during the term of this Agreement, the Tenant shall undertake such replacement so as to minimize disruption of any other tenant's business. (h) Tenant shall, at Tenant's expense, promptly repair all damage caused by the Tenant or any sublessees to the Leased Premises and replace or repair all damaged or broken fixtures, equipment and appurtenances with materials equal in quality and class to the original materials, under the supervision and subject to the approval of Landlord, and within any reasonable period of time specified by Landlord. If Tenant fails to do so, Landlord may, but need not make such repairs and replacements, and Tenant shall pay Landlord the cost thereof, including Landlord's Costs, forthwith upon being billed for same. As used in this Agreement, the term "Landlord's Costs" shall mean five percent (5%) of any costs or expenses paid by Landlord, in order to reimburse Landlord for all overhead, general conditions, fees and other costs and expenses arising from Landlord's actions or involvement. (i) Trade Fixtures. Any trade fixtures installed on the Leased Premises by Tenant at its own expense, including but not limited to movable partitions, counters, shelving, showcases, mirrors and the like may, and at the request of Landlord, shall be removed on the Expiration Date or upon earlier termination of this Agreement provided that Tenant is not then in default. Tenant agrees that Tenant will bear the cost of such removal, and further that Tenant will repair at its own expense any and all damage to the Leased Premises resulting from the original installation of and subsequent removal of such trade fixtures. If Tenant fails so to remove any and all such trade fixtures from the Leased Premises on the Expiration Date or upon earlier termination of this Agreement, all such trade fixtures shall become the property of Landlord unless Landlord elects to require their removal, in which case Tenant shall promptly remove same and restore the Leased Premises to their prior condition. In the event Tenant so fails to remove same, Landlord may have same removed and the Leased Premises repaired to their prior condition, all at Tenant's expense. 0) Reserved Rights. Landlord reserves the right to make, at any time or times, at its own expense, repairs, alterations, additions and improvements, structural or otherwise, in or to the Leased Premises, and to perform any acts related to the safety, protection or preservation thereof, and during such operations to take into and through the Leased Premises all material and equipment required and to close or temporarily suspend operation of entrances, doors, corridors, or other facilities, provided that Landlord shall cause as little inconvenience or annoyance to Tenant as is reasonably necessary in the circumstances. Landlord may do any such work during ordinary business hours and Tenant shall pay Landlord for overtime and for any other expenses incurred if Landlord agrees to conduct such work during other hours as requested by Tenant. 12. FIRE OR OTHER CASUALTY; CASUALTY INSURANCE fq) Substantial Destruction of the Building. If the Building should be substantially destroyed (which, as used herein, means destruction or damage to at least sixty percent (60%) of the Building) by fire or other casualty, the Landlord will terminate this Agreement by giving written notice thereof to the other party within thirty (30) days of such casualty. In such event, the Charges shall be apportioned to and shall cease as of the date of such casualty. (b) Casualty Insurance. Without limiting Tenant's liability under this Agreement, Landlord shall procure and maintain a policy or policies of public liability insurance, insuring against injury or death to persons and " all risk" hazard insurance for loss or damage to the Leased Premises; provided, however, that Landlord shall not be responsible for, and shall not be obligated to insure against, any loss or damage to personal property (including, but not limited to, any furniture, machinery, equipment, goods or supplies) of Tenant or which Tenant may have on the Leased Premises or any trade fixtures installed by or paid for by Tenant on the Leased Premises or any additional improvements which Tenant may construct on the Leased Premises. If Tenant's operation or any alterations or improvements made by Tenant pursuant to the provisions of this Agreement result in an increase in the premiums charged during the Term on the casualty insurance carried by Landlord on the Leased Premises, then the cost of such increase in insurance premiums shall be borne by Tenant as an Operating Charge. Tenant shall, at its expense during the term of this Agreement, keep in full force and effect a policy or policies of property insurance with an insurance company licensed to do business in the State of Minnesota, covering its personal property, furniture, machinery, equipment, supplies, stored goods, trade fixtures installed by or paid for by Tenant or any additional improvements which Tenant may construct on the Leased Premises which coverage shall be no less than eighty percent (80%) of replacement value. Tenant shall furnish Landlord with a certificate evidencing that such coverages are in full force and effect. Lc) Waiver of Subrogation. Landlord and Tenant hereby release each other and each other's employees, agents, customers and invitees from any and all liability for any loss, damage or injury to property occurring in, on or about or to the Leased Premises, improvements to the Leased Premises or personal property within the Leased Premises, by reason of fire or other casualty which are covered by applicable standard fire and extended coverage insurance policies. Because the provisions of this paragraph will preclude the assignment of any claim mentioned herein by way of subrogation or otherwise to an insurance company or any other person, each party to this Agreement shall give to each insurance company which has issued to it one or more policies of fire and extended coverage insurance notice of the terms of the mutual releases contained in this paragraph, and have such insurance policies properly endorsed, if necessary, to prevent the invalidation of insurance coverages by reason of the mutual releases contained in this paragraph. 13. GENERAL PUBLIC LIABILITY, INDEMNIFICATION AND INSURANCE (a) All insurance, liability and indemnification certificates are subject to review and approval by the Landlord. (b) Except for the negligence or intentional misconduct of Landlord, Landlord's agents, servants or employees, Tenant shall insure against, and shall indemnify Landlord and hold it harmless from, any and all liability for any loss, damage or injury to person or property, arising out of use, occupancy or operations of Tenant and occurring in, on or about the Leased Premises, including use of the Leased Premises by Tenant's sublessees, and Tenant hereby releases Landlord from any and all liability for the same. Tenant's obligation to indemnify Landlord hereunder shall include the duty to defend against any claims asserted by reason of such loss, damage or injury and to pay any judgments, settlements, costs, fees and expenses, including attorney's fees, incurred in connection therewith. (c) Tenant shall at all times during the Term carry, at its own expense, for the protection of Tenant, Landlord and Landlord's management agent (if any), as their interests may appear, one or more policies of general public liability and property damage insurance, issued by one or more insurance companies licensed to do business in the State of Minnesota and acceptable to Landlord, covering Tenant's use, occupancy and operations. Such insurance policy or policies shall name Landlord, its agents and employees, as additional insureds and shall provide that they may not be canceled or materially changed on less than thirty (30) days prior written notice to Landlord. Tenant shall furnish Landlord with certificates of insurance evidencing such insurance upon request. Should Tenant fail to carry such insurance and furnish Landlord with copies of all such policies after a request to do so, Landlord shall have the right to obtain such insurance and collect the cost thereof from Tenant as an Operating Charge. (d) Landlord and its partners, shareholders, affiliates, officers, agents, servants and employees shall not be liable for any damage to person, property or business or resulting from the loss of use thereof sustained by Tenant or by any other persons due to the Building or any part thereof or any appurtenances thereof becoming out of repair, or due to the happening of any accident or, event in or about the Building, including the Leased Premises, or due to any act or neglect of any tenant or occupant of the Building or of any other person. This provision shall apply particularly, but not exclusively, to damage caused by gas, electricity, snow, ice, frost, steam, sewage, sewer gas or odors, fire, water or by the bursting or leaking of pipes, faucets, sprinklers, plumbing fixtures and windows and shall apply without distinction as to the person whose act or neglect was responsible for the damage and whether the damage was due to any of the causes specifically enumerated above or to some other cause. Tenant agrees that all personal property located in the Leased Premises shall be at the risk.of Tenant only, and that Landlord shall not be liable for any loss or damage thereto or theft thereof. 14. LIENS. Tenant shall not cause or allow any mechanic's lien or other lien to be filed against the Leased Premises or against other property of Landlord (whether or not such lien is valid or enforceable as such). In the event any mechanic's lien shall at any time be filed against the Leased Premises by reason of work, labor, services or materials performed or furnished to Tenant or to anyone holding the Leased Premises through or under Tenant, Tenant shall forthwith cause the same to be discharged of record. If Tenant shall fail to cause such lien forthwith to be discharged within five (5) days after being notified of the filing thereof, then, in addition to any other right or remedy of Landlord, Landlord may, but shall not be obligated to, discharge the same by paying the amount claimed to be due, or by bonding, and the amount so paid by Landlord and all costs and expenses, including reasonable attorneys' fees incurred by Landlord in procuring the discharge of such lien, shall be due and payable in full by Tenant to Landlord on demand. 15. RENTAL, PERSONAL PROPERTY AND OTHER TAXES. Landlord shall pay before delinquency any and all real estate taxes, assessments, fees or charges (hereinafter referred to as "taxes"), related to the Leased Premises, except any sales, gross income, rental, business occupation or other taxes, levied or imposed upon Tenant's business operation in the Leased Premises and any personal property or similar taxes levied or imposed upon Tenant's trade fixtures, leasehold improvements or personal property located within the Leased Premises, which will be Tenant's responsibility. In the event any such taxes are charged to the account of, or are levied or imposed upon the property of Landlord, Tenant shall reimburse Landlord for the same. 16. DEFAULTS AND REMEDIES (a) Default by Tenant. The occurrence of any one or more of the following events shall be an event of default ("Event of Default") and breach of this Agreement by Tenant: (i) Tenant shall fail to pay any monthly installment of Rent or any other charges set forth in this Agreement within fifteen (15) days after the same shall be due and payable. (ii) Tenant shall fail to perform or observe any term, condition, covenant or obligation required to be performed or observed by it under this Agreement for a period of thirty (30) days after notice thereof from Landlord; provided, however, that if the term, condition, covenant or obligation to be performed by Tenant is of such nature that the same cannot reasonably be performed within such thirty - day period, such default shall be deemed to have been cured if Tenant commences such performance within said thirty -day period and thereafter diligently undertakes to complete the same, but in any event completes cure within ninety (90) days after notices from Landlord. (iii) Tenant shall vacate or abandon or fail to occupy for a period of thirty (30) days, the Leased Premises or any substantial portion thereof; (iv) Tenant causes or permits a hazardous condition to exist on the Leased Premises and fails to cure such condition immediately after notice thereof from Landlord. (b) Remedies of Landlord. Upon the occurrence of any Event of Default set forth in this Agreement, Landlord shall have the following rights and remedies, in addition to those allowed by law, any one or more of which may be exercised without further notice to or demand upon Tenant: (i) Landlord may re-enter the Leased Premises and cure any Event of Default of Tenant, in which event Tenant shall reimburse Landlord for any costs and expenses which Landlord may incur to cure such Event of Default; and Landlord shall not be liable to Tenant for any loss or damage which Tenant may sustain by reason of Landlord's action, regardless of whether caused by Landlord's negligence or otherwise. (ii) Landlord may terminate this Agreement as of the date of such Event of Default, in which event: (A) Neither Tenant nor any person claiming under or through Tenant shall thereafter be entitled to possession of the Leased Premises, and Tenant shall immediately thereafter surrender the Leased Premises to Landlord; (B) Landlord may re-enter the Leased Premises and dispossess Tenant or any other occupants of the Leased Premises by summary proceedings, ejectment or otherwise, and may remove their effects, without prejudice to any other remedy which Landlord may have for possession or arrearages in rent; (C) Notwithstanding the termination of this Agreement, Tenant shall be responsible for payment of all of Landlord's cost and expenses for any repairs required for Tenant's failure to maintain the Building pursuant to Paragraph 11. The liabilities and remedies specified herein shall survive the termination of this Agreement. (iii) Landlord may sue for injunctive relief or to recover damages for any loss resulting from the breach. (iv) Tenant is responsible for any charges that have been forgone by the Landlord including, but limited to, prorated property taxes in the year of default. Any such right of termination of Landlord contained herein shall continue during the Term of this Agreement. U Default by Landlord and Remedies of Tenant. Landlord shall not be deemed to be in default under this Agreement until Tenant has given Landlord written notice specifying the nature of the Event of Default and Landlord does not cure such Event of Default within thirty (30) days after receipt of such notice or within such reasonable time thereafter as may be necessary to cure such Event of Default where such default is of such a character as to reasonably require more than thirty (30) days to cure. Landlord failure to cure and Event of Default under this Agreement shall entitle Tenant to terminate the Agreement immediately, and pursue claims for any damages caused Tenant by Landlord's default hereunder, in addition to such other rights and remedies as may exist under applicable law. (d,) Waiver of Covenants. Failure of Landlord to insist, in any one or more instances, upon strict performance of any term, covenant, condition, or option of this Agreement, or to exercise any option herein contained, shall not be construed as a waiver, or a relinquishment for the future, of such term, covenant, condition, or option, but the same shall continue and remain in full force and effect. The receipt by Landlord of Rent with knowledge of breach in any of the terms, covenants, conditions, or options, of any of this Agreement to be kept or performed by Tenant shall not be deemed a waiver of such breach, and Landlord, shall not be deemed to have waived any provision of this Agreement unless expressed in writing and signed by Landlord. (e) Attorney If Tenant defaults in the performance or observance of any of the terms, conditions, covenants or obligations contained in this Agreement and Landlord placed the enforcement of all or any part of this Agreement, the collection of any Rent due or to become due or the recovery of possession of the Leased Premises in the hands of an attorney, or if Landlord incurs any fees or out-of-pocket costs in any litigation, negotiation or transaction in which Tenant causes Landlord (without Landlord's fault) to be involved or concerned, Tenant agrees to reimburse Landlord for the attorney's fees and costs incurred thereby, whether or not suit is actually filed. 17. ACCESS TO THE LEASED PREMISES. Landlord, its employees and agents of the Leased Premises shall have the right to enter any part of the Leased Premises at all reasonable times for the purposes of examining or inspecting the same and for making such repairs, alteration or improvements to the Leased Premises as Landlord may deem necessary or desirable. If representatives of Tenant shall not be present to open and permit such entry into the Leased Premises at any time when such entry is necessary or permitted hereunder, Landlord and its employees and agents may enter the Leased Premises by means of a master key or otherwise. Landlord shall incur no liability to Tenant for such entry, nor shall such entry constitute an eviction of Tenant or a termination of this Agreement, nor entitle Tenant to any abatement of payments due and payable under this Agreement. 18. TERMINATION. (a) Landlord Termination. Landlord may terminate this Agreement as authorized under the provisions of this Agreement. In addition to any other provisions for termination under this Agreement, Landlord may terminate this Agreement upon thirty (30) days' notice. (b) Tenant Termination. In addition to any other provisions for termination under this Agreement, Tenant may terminate this Agreement upon thirty (30 days' notice, in the event a proposed improvement required to operate the Leased Premises is estimated to exceed $10,000, should the parties fail to come to an agreement regarding responsibility and assignment of costs. 19. SURRENDER OF LEASED PREMISES. Upon the expiration, or earlier termination, of this Agreement Tenant shall surrender the Leased Premises to Landlord, together with all keys, access cards, alterations, improvements, and other property as provided elsewhere herein, in broom -clean condition and in good order, condition and repair, except for ordinary wear and tear and damage which Tenant is not obligated to repair, failing which Landlord may restore the Leased Premises to such condition at Tenant's expense, which shall be payable from the Escrowed Funds. Upon such expiration or termination Tenant's trade fixtures, furniture and equipment shall remain Tenant's property, and if Tenant shall not then be in default under this Agreement, Tenant shall have the right to remove the same prior to the expiration or earlier termination of this Agreement. Tenant shall promptly repair any damage caused by any such removal, and shall restore the Leased Premises to the condition existing prior to the installation of the items so removed. Any of Tenant's trade fixtures, furniture or equipment not so removed shall be considered abandoned and may be retained by Landlord or be destroyed. 20. HOLDING OVER. No holding over by Tenant is permitted after the expiration or earlier termination of this Agreement. If Tenant remains in possession of the Leased Premises without the consent of Landlord after the expiration or earlier termination of this Agreement, Tenant shall be deemed to hold the Leased Premises as a tenant from month to month, terminable on thirty (30) days' notice given by one party to the other and subject to all of the terms, conditions, covenants and provisions of this Agreement (which shall be applicable during the holdover period), except that Tenant shall pay to Landlord all property taxes assessed against the Property for collection in 2019 as described in Paragraph 6, and additional charges or expenses, which shall be payable to Landlord on demand. In addition, Tenant shall be liable to Landlord for all damages occasioned by such holding over. Tenant shall vacate and surrender the Leased Premises to Landlord upon Tenant's receipt of notice from Landlord to vacate. No holding over by Tenant, whether with or without the consent of Landlord, shall operate to extend this Agreement except as otherwise expressly provided herein. 21. QUIET ENJOYMENT. Except as may be provided in this Agreement to the extent that it may be applicable, if and so long as Tenant performs or observes all of the terms, conditions, covenants and obligations of this Agreement required to be performed or observed by it hereunder, Tenant shall at all times during the term hereof have the peaceable and quiet enjoyment, possession, occupancy and use of the Leased Premises without any interference from Landlord or any person or persons claiming the Leased Premises by, through or under Landlord, subject to any mortgages, underlying leases or other matters of record to which this Agreement is or may become subject. 22. NOTICE AND PLACE OF PAYMENT (a) All payments required to be made by Tenant to Landlord shall be delivered or mailed to Tenant at the address set forth in Paragraph 22(b) hereof or at any other address within the United States as Tenant may specify from time to time by written notice given to Landlord. (b) Any notice, demand or request required or permitted to be given under this Agreement or by law shall be deemed to have been given if reduced to writing and mailed by Registered or Certified mail, postage prepaid, to the party who is to receive such notice, demand or request at the address set forth below or at such other address as Landlord or Tenant may specify from time to time by written notice. When delivering such notice, demand or request shall be deemed to have been given as of the date it was so delivered or mailed. Landlord: City of Monticello Economic Development Authority 505 Walnut Street Monticello, MN 55362 Attention: Executive Director Tenant: Michael W Froslie and Kathleen A. Froslie 103 Pine Street Monticello, MN 55362 23. MISCELLANEOUS GENERAL PROVISIONS fa) Memorandum of Agreement. If requested by either party, a Memorandum of Agreement, containing the information required by law concerning this Agreement shall be recorded in Wright County, Minnesota. Applicable Law. This Agreement and all matters pertinent thereto shall be construed and enforced in accordance with the laws of the State of Minnesota. Cc) Entire Agreement. This Agreement, including all Exhibits and Addenda, constitutes the entire agreement between the parties hereto and may not be modified except by an instrument in writing executed by the parties hereto. Binding Effect. This Agreement and the respective rights and obligations of the parties hereto shall inure to the benefit of and be binding upon the successors and assigns of the parties hereto as well as the parties themselves; provided, however, that Landlord, its successors and assigns shall be obligated to perform Landlord's covenants under this Agreement only during and in respect of their successive periods as Landlord during the term of this Agreement. (e,) Severability. If any provision of this Agreement shall be held to be invalid, void or unenforceable, the remaining provisions hereof shall not be effected or impaired, and such remaining provisions shall remain in full force and effect. (f No Partnership. Landlord shall not, by virtue of the execution of this Agreement or the leasing of the Leased Premises to Tenant, become or be deemed a partner of Tenant in the conduct of Tenant's business on the Leased Premises or otherwise. (g) Limitation of Landlord's Personal Liability. Tenant specifically agrees to look solely to Landlord's interest in the Leased Premises for the recovery of any judgment against Landlord, it being agreed that Landlord shall never be personally liable for any such judgment. Time of Essence. Time is of the essence of this Agreement and each of its provisions. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first written above. LANDLORD: CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY By: Its: President By: Its: Executive Director TENANT: Michael W. Froslie Kathleen A. Froslie EXHIBIT A PROPERTY Lots 11 and 12, Block 52, City or Townsite of Monticello, Wright County, Minnesota; and that part of Lot 10, Block 52, City or Townsite of Monticello, Wright County, Minnesota described as follows: beginning at the northeasterly corner of said Lot 10; thence southerly along the southeasterly line of said Lot 10, a distance of 26.00 feet; thence westerly to a point on the northwesterly line of said Lot 10 distant 26.00 feet southerly of the northwesterly corner of said Lot 10; thence northerly along said northwesterly line to said northwesterly corner; thence easterly along the northeasterly line of said Lot 10 to the point of beginning. Subject to and together with an ingress and egress easement across the southwesterly 10.00 feet of the northeasterly 36.00 feet of said Lot 10, as measured at a right angle to and parallel with the northeasterly line thereof. PID: 155010052110, 155010052120, and 155010052102 EDA: 03/14/18 4f. Consideration of approving Contract with Northland Securities, Inc. for Financial Planning Services related to creation of Affordable Housing Tax Increment Financing District #140 (JT) A. REFERENCE AND BACKGROUND: This item is to ask the EDA to consider approving a specific project based Contract with Northland Securities, Inc. (NSI) related to creation of an Affordable Housing Tax Increment Financing (TIF) District # 1-40. The application submittal by Briggs Properties warrants that the EDA consider entering into the proposed Contract to obtain financial planning and analysis services as well as guidance in the required steps in establishing a new TIF District. The attached proposal outlines services related to development parcel valuation data, review of the developer finance structure and "but for" findings. It also covers preparation and distribution of various notices, planning documents, completion of a TIF Plan and attendance at two meetings. It does not include legal documents such as resolutions and development agreements. In the event that a new Housing TIF District is not the desired assistance tool to for the proposed development, NSI will only bill for actual work performed based on an hourly rate of $180. The work that will be especially useful will be the comparison of the existing Redevelopment TIF District increment flow versus that which could be generated through a new Housing TIF District. Staff is proposing to hold a workshop in late March to review the two TIF Districts' increment flow in a side-by-side comparison. Staff will discuss the potential meeting date with the EDA at the regular meeting. Al. STAFF IMPACT: TIF Districts are extremely complicated tax based financial assistance tools used to support new development. There are a number of legal and critical financial review processes that are required in establishing a new TIF District. Under the proposed contract, NSI will analyze property and financing data and prepare a TIF Plan specifically tailored to the proposal and the site. They will also prepare the essential "but -for" findings. In-house staff will support and collaborate with NSI by providing application submittal materials and guidance as to EDA discussion regarding the policy of using TIF for a housing development. A2. BUDGET IMPACT: The funds to pay for the proposed NSI contract will come from the $10,000 TIF application fee paid by Briggs Properties. NSI's quote of $8,820 for the Financial Planning Services leaves a balance of $1,180 for other expenses (primarily legal fees) needed to complete the entire TIF review and approval process. B. ALTERNATIVE ACTIONS: 1. Motion to approve Northland Securities, Inc's. Financial Planning Agreement for services related to creation of an Affordable Housing TIF District as presented. 2. Motion to deny approval of the NSI Financial Planning Agreement for services related to creation of an Affordable Housing TIF District. EDA: 03/14/18 3. Motion to table consideration of the NSI Financial Planning Agreement for services related to creation of an Affordable Housing TIF District. C. STAFF RECOMMENDATION: Staff recommends Alternative 1. The NSI Financial Planning Services Agreement is essential to ensure the EDA stays within the bounds of all required steps and notices when creating a new TIF District. TIF districts have impacts across several taxing jurisdictions. Therefore it important that staff have the support of consultants such as NSI to perform highly specialized TIF Plan analytical work and preparation of specific plans and documents that are part of a creating a new TIF District. D. SUPPORTING DATA: a. NSI Financial Planning Services Agreement b. NSI 2018 Annual Service and Rate Letter PA FINANCIAL PLANNING AGREEMENT BY AND BETWEEN THE CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY AND NORTHLAND SECURITIES, INC. TAX INCREMENT FINANCING DISTRICT (HOUSING) This Agreement made and entered into by and between the City of Monticello Economic Development Authority, Minnesota (hereinafter the "EDA") and Northland Securities, Inc., of Minneapolis, Minnesota (hereinafter "NSI"). WITNESSETH WHEREAS, the EDA desires to use the services of NSI for financial planning assistance related the establishment of a new tax increment financing housing district (the "TIF District") to provide financial assistance for the construction of an approximate 48 -unit multi -family affordable housing project (the "Project"). WHEREAS, the Project is intended solely for financial planning and NSI is not providing advice on the timing, terms, structure or similar matters related to a specific bond issue. WHEREAS, NSI desires to furnish services to the EDA as hereinafter described. NOW, THEREFORE, it is agreed by and between the parties as follows: SERVICES TO BE PROVIDED BY NSI The scope of work will undertake the process and financial planning to establish the TIF District. Legal services to review the plan for the establishment of the TIF District (the "TIF Plan"), resolutions, and agreements are not provided by NSI and are not subject to this agreement. Any inspection services that may be needed to determine if the project meets the definition of "Substandard Building" as defined by Minnesota Statutes, Section 469.174, subdivision 10, are not provided by NSI and are not subject to this agreement. NSI will provide the following services: 1. Collect data for the TIF District and the Project, including: a. Parcel identification numbers for all parcels within the Development District and the TIF District. b. Estimated market value and tax capacity value for all parcels within the TIF District. c. Current property tax rates for all jurisdictions. d. Map showing project location and parcel boundaries. Agreement (Housing TIF District) Page 1 2. Evaluate and advise the EDA on the type of tax increment financing district and provide guidance on statutory finding 4. Collect data about the Project, including: a. Type, size, value, and timing of proposed development. b. Activities and estimated costs (project budget) to be paid by the TIF District. 5. Review basis for findings for establishing TIF District, including: a. Statutory criteria for proposed district. b. Developer justification ("but for") for the use of tax increment. c. Review and analyze Developer construction pro forma and operating pro forma for the Project. d. Prepare memorandum for the EDA presenting the findings. 6. Determine basic understanding of key criteria for the process including: a. Boundaries of Development District and the TIF District. b. Specific development objectives to address in the planning documents beyond the Project, including decertification of an existing tax increment financing district. c. Official newspaper and publication schedule. 7. Obtain any additional data not collected in item #1, including: a. Building permits issued for parcels in the TIF District over the past 18 months. b. Current comprehensive plan. 8. Set and distribute calendar of meetings and key dates. 9. Prepare notice of hearing and comply with statutory requirements for mailing and publication. 10. Assist the EDA's attorney with drafting of the development agreement for the Project. 11. Prepare planning documents including modification of the Development Program for the Development District and Tax Increment Financing Plan for the TIF District. 12. Distribute draft planning documents with letter of explanation and other supporting information to county and school district. 13. Assist with preparation of resolutions authorizing the TIF District and approving the TIF Plan. 14. Prepare and distribute resolution for planning commission findings, if necessary (scope does not include NSI attendance at planning commission meeting). 15. Prepare and distribute packet for public hearing including the TIF Plan and approving resolution. 16. Attend and facilitate the EDA meeting to consider approval of the TIF District and agreement for the Project. Agreement (Housing TIF District) Page 2 16. Attend and facilitate the public hearing and City Council meeting to consider approval of the TIF District. 17. Prepare TIF transcript (electronic document). 18. Submit district for certification by the county. 19. File district with the State of Minnesota. The scope of services includes NSI attendance at two (2) meetings. [oil]3 $ W:101: 111 to] 01 The budget for undertaking the tasks in this agreement is an amount not to exceed $8,820. The amount is based on the estimated number of hours required to complete these tasks at an hourly billing rate of $180 per hour plus reimbursable expenses for travel, printing, and mailing. NSI will bill on a monthly basis for actual services performed and reimbursable expenses. The EDA may at its discretion authorize NSI to undertake additional tasks, including meeting attendance, beyond the tasks listed above. Additional planning services will be billed monthly at a rate of $180 per hour. Invoices will detail the work performed, requested compensation for the period and show amounts previously billed. ASSIGNED NSI EMPLOYEE The NSI employee responsible for providing services pursuant to this agreement and for the services performed is Tammy Omdal, Senior Vice President. SUCCESSORS OR ASSIGNS The terms and provisions of this Agreement are binding upon and inure to the benefit of the EDA and NSI and their successors or assigns. DISCLAIMER In performing service under this agreement, NSI is relying on the accuracy of information provided by the developer for the proposed project and the EDA and the services provided by NSI are based on current State Law. The parties agree that the Minnesota property tax system and other laws may change and may affect the accuracy and validity of services provided by NSI. NSI will perform its work using the best available information. The EDA recognizes and accepts that future property values, tax levies and tax rates may vary from the assumptions used by NSI and such changes may affect the work product produced and provided by NSI. TERM OF THIS AGREEMENT This Agreement may be terminated by thirty (30) days written notice by either the EDA or NSI. In the event of early termination by the EDA, NSI shall provide the EDA with an itemized hourly statement of services already provided. All billable hours by NSI shall be billed at the stated hourly rates should early termination occur. Agreement (Housing TIF District) Page 3 Dated this day of March, 2018. N rtYlanecurities, Ii . By: Thomas Bartzen Head of Public Finance City of Monticello Economic Development Authority By: Title Agreement (Housing TIF District) Page 4 NORTHLAND PUBLIC FINANCE December 21, 2017 Mr. Jeff O'Neill Mr. Wayne Oberg Ms. Angela Schumann City of Monticello 505 Walnut Street, Suite 1 Monticello, MN 55362 RE: Northland Public Finance Services Dear Mr. O'Neill, Mr. Oberg, and Ms. Schumann: Northland Public Finance, a division of Northland Securities, Inc. appreciates the opportunity to continue our services to the City of Monticello (the "City") and Monticello Economic Development Authority (the "EDA"). We value the work that we have done with the City and EDA in the past and look forward to the opportunity to continue to provide excellent service in 2018. Northland desires to furnish services to the City and EDA as described in this letter. The Planning Service fee is proposed to increase from $175 to $180 and the fees for debt issuance are proposed to increase by 2.0% or less. Nothing in this agreement limits the ability of the City and EDA to separately engage Northland as underwriter for a bond issuance. The City and EDA may decide to use Northland for any or all of the offered services at its sole discretion. Effective July 1, 2014, parties that provide advice to issuers of municipal securities must comply with Rules 15Ba1-1 through 15Ba1-8 of the Securities and Exchange Commission (SEC). The "Municipal Advisor Rule" requires firms that act as a municipal advisor to register with the SEC. Northland Securities is a registered municipal advisor. Effective June 23, 2016, Municipal Securities Rulemaking Board (MSRB) Rule G-42 took effect. Rule G-42 requires a firm to provide a written agreement and certain disclosures in order to serve as a Municipal Advisor for a specific bond issuance. Northland will provide the City an agreement on an issue -by -issue basis. An issue -by -issue agreement and disclosure ensures that when the City may determine to engage Northland as Municipal Advisor the City will receive timely and accurate information at the beginning of the bond issuance process. 45 South 7h Street, Suite 2000, Minneapolis, MN 55402 Main: (612) 851-5900 / Direct: (612) 8514964 / Email: tomdal@northlandsecurities.com Member FINRA and SIPC I Registered with SEC and MSRB Northland Public Finance December 21, 2017 Page 2 of 4 PLANNING SERVICES At the direction of the City or EDA, Northland will provide financial planning services including, but not limited to: 1. Creation and management of tax increment financing districts. 2. Creation and management of tax abatement programs. 3. Yearly preparation of tax increment financing payment calculations in a format that the City provides. 4. Creation and management of other public finance tools including special service districts, housing improvements areas, special assessments, and utility user fees. 5. Review and evaluation of proposals for public financial assistance for private development. 6. Assistance with the negotiation and management of development agreements. 7. Creation strategies and/or policies for the implementation of development and redevelopment projects. 8. Creation of capital improvement plans including the identification of funding alternatives and the analysis of financial implications. 9. Preparation of long range financial projections and plans. 10. Design and facilitation of group decision making and educational workshops. 11. Assistance with grants and other federal funding initiatives. Northland will provide a scope of work and budget for each Planning Service. From time to time, the City and EDA may at its discretion, authorize Northland to undertake Planning Services without a written scope of work and budget. DEBT ISSUANCE At the direction of the City, Northland will provide services for the issuance of debt. Northland shall provide all services necessary to analyze, structure, offer for sale and close the transaction. The services will be adjusted to meet the specific needs of each debt project. Examples of the services include the following: Planning and Development: 1. Meet with City officials and others as directed to define the scope and the objectives. 2. Assemble and analyze relevant statistical information. 3. Prepare a preliminary feasibility study or discuss with City officials possible funding options and the fiscal implications of each. 4. Assist with determining strategies to meet federal arbitrage exceptions or mitigating rebate exposure. 5. Prepare details on the elements of the bond issue including, issue structure, method of issuance, term, sale timing, and call provisions. Northland Public Finance December 21, 2017 Page 3 of 4 6. Prepare a schedule of events related to the issuance process. 7. Attend meetings of the City Council and other project and bond issue related meetings as needed and as requested. Bond Sale: 1. Prepare and provide the City with the Preliminary Official Statement for review and approval. 2. Recommend whether the issue should secure a bond rating. If the issue is to be rated, prepare and furnish to the rating agencies the information the rating agencies require to evaluate the issue and provide their rating. Serve as the City's representative to the rating agencies. 3. Assist the city and the development of investor interest for the purchase of the bonds. 4. Conduct bond sale process. 5. Coordinate with bond counsel the preparation and execution of required documents. 6. Prepare and post the Final Official Statement. 7. Coordinate with the purchaser and the City the closing process and the receipt of bond proceeds by the City. Post Sale Support: 1. Furnish to the City a complete transcript of the transaction. 2. Assist, as requested by the City, with the investment of bond issue proceeds. Investment Assistance: Should the City desire to invest the proceeds from the debt issuance or any other funds of the City through Northland in its capacity as a broker, Northland shall, at all times, transact such investments as principal. CONTINUING DISCLOSURE At the direction of the City, and under a separate agreement, Northland will continue to assist the City with all aspects of compliance with the Security and Exchange Commission's Rule 15c2-12 on continuing disclosure. Northland employs a full-time continuing disclosure specialist to collect information and to submit annual disclosure documents on behalf of our clients. We monitor changing regulations and industry practices to ensure that our services stay up to date. COMPENSATION Planning; Services: Northland is committed to establishing fair and manageable arrangements for consulting projects billed on an hourly basis. For every project, we will provide the City Northland Public Finance December 21, 2017 Page 4 of 4 with a description of work to be performed and a cost of services. We will not bill for costs in excess of the stated amount unless the City agrees to a revised scope of work and budget. We will not surprise the City with unexpected billing. We will not seek compensation for services not under contract. Planning services will be billed monthly at a rate of $180 per hour. Invoices will detail the work performed, requested compensation for the period and show amounts previously billed and amount remaining under the approved budget. Debt Issuance: 1. Fees for debt issuance is based on the par amount of bonds issued and are proposed to be as follows: Par Amount $0 to $500,000 $500,001 to $1,000,000 $1,000,001 to $2,000,000 $2,000,001 to $3,000,000 $3,000,001 to $4,000,000 $4,000,001 to $5,000,000 $5,000,000 and Over Fee $8,050 $9,995 $13,975 $16,625 $19,075 $22,335 $22,335 plus $620/$500,000 in excess of $5 million 2. Fee schedule applies to the aggregate amount of debt issued that day - not on an individual series basis. 3. Revenue Bonds and Advance Refunding Bonds are billed at 1.25 times the above fee schedule. 4. Northland will not bill for any out of pocket expenses for debt issuance such as transcript, travel, copying, mail/shipping, and official statement printing. Thank you for the opportunity to submit this letter and for the opportunity to continue to provide service to the City and EDA. I would be happy to answer any questions regarding the proposal for service. Sincerely, Northland Securities Tammy Omdal Senior Vice President EDA: 03/14/18 5. Consideration to adopt Resolution 2018-05 approving a Purchase Agreement for Acquisition of a commercial property located at 112 West River Street, PID #: 155010052131 (JT) A. REFERENCE AND BACKGROUND: This item is to ask the EDA to consider purchasing a commercial property in the downtown core area. The property address is 112 West River Street. It is located in the middle of Block 52 and is a fully -improved parcel. It is a flag shaped lot with access via River Street. The City of Monticello owns a parcel containing a public parking lot just west of the property. The Antique Store, which the EDA authorized a purchase agreement for at the February 14, 2018 meeting, is situated to the east side of the property. West Bridge Park is located just north of the site (across River Street). Site improvements consist of a building, constructed in 1948, and utility services and an asphalt driveway connecting to River Street. The parcel is approximately 5,014 sq. ft. +/-. The 3,432 sq. ft. +/- building covers 69 percent of the parcel. Wright County has a 2018 valuation of $93,000 for the property. The seller purchased the property for $250,000 via a Contract for Deed in 2006 which was near the top of the market, prior to the Great Recession. The current EDA offer for the property is $370,000. This is a global settlement and includes all relocation benefits allowing the owner -occupant, Union Speed & Style, to move to another location with its equipment and supplies. Union Speed & Style is a craft manufacturer of custom high-end vehicles. All work is performed inside of their building. No outside storage is allowed at the site. Zoning in this area is CCD (Central Community District) which currently allows a variety of retail and service businesses. Purchase of the property means that the EDA would hold this lot for future redevelopment. The exact timeline of such redevelopment is not yet determined. The recently completed downtown Small Area Study envisions significant portions of Block 52 as being a prime redevelopment area. The Plan recommends future uses such as dining -entertainment, service, retail and multi -family housing (rental or owner occupied) in potential vertical mixed-use development and/or horizontal mixed-use projects. Attached is a draft purchase agreement (PA) based on the Letter of Intent (LOI), approved at the February meeting, and Resolution 2018-05 for the EDA's consideration. The Planning Commission approved a Resolution finding the proposed acquisition to be in conformance with the City Comprehensive Plat at its March 6, 2018 meeting. Al. STAFF IMPACT: There is a limited staff impact in considering purchasing the property located at 112 West River Street. The property is located in a key redevelopment area and will ultimately be part of a future redevelopment proposal. The proposed acquisition fits in with the objectives outlined in the Small Area Study and the City Comprehensive Plan. Staff will not be required to manage the property long-term. After the current occupants vacate the property, the site will be monitored by City staff which requires a minimal time commitment. EDA: 03/14/18 A2. BUDGET IMPACT: The cost of purchasing the property at 112 West River Street is $370,000 +/-. The EDA has a General Fund cash balance position for land acquisition and redevelopment activities of nearly $1,319,000 +/-, post acquiring three properties in early 2018 (this proposed acquisition is the fourth). However, staff will meet with its Northland financial advisor prior to yearend to determine the best mix of sources (EDA General Fund, TIF 6, TIF 22, etc.) for the expenditure. As a general rule of finance the EDA should always consider using its most restrictive funds first. The item is coded to an inventory -type account — land held for resale. B. ALTERNATIVE ACTIONS: 1. Motion to approve Resolution 2018-05 authorizing the purchase of the commercial property located at 112 West River Street. 2. Motion to deny approval of Resolution 2018-05 authorizing the purchase of the commercial property located at 112 West River Street. 3. Motion to table consideration of the purchase and direct staff accordingly. C. STAFF RECOMMENDATION: Staff recommends Alternative 1. The property is a key parcel in the efforts to implement the Small Area Study vision for the Downtown area. Block 52 is a prime redevelopment area due to its proximity to the public park and also because the City and EDA combined currently own approximately 30 percent of the Block. By consolidating additional land area under the EDA umbrella, it will make marketing the site easier. There should be fewer complicated issues to work through in negotiating future development of the site. The Downtown Small Area Study Implementation Steps Summary also identifies acquisition of this property as an important/critical goal (see attachment). The EDA sponsored appraisal indicates that the property has a value of $290,000. The EDA offer is a global settlement that includes all relocation costs resulting in an all -in offer price of $370,000. The relocation component of $80,000 is based on estimates that were developed through the requirements of the Uniform Relocation Act as if the transaction were being completed under a condemnation process. The EDA should establish a public purpose when purchasing property which is identified in the draft resolution. City staff will support the desired direction of the EDA in this matter. D. SUPPORTING DATA: a. Resolution 2018-05 b. Purchase Agreement c. Key Terms d. Property Information and Aerial Photo e. Zoning Map f. Small Area Study Perspective Illustration PA EDA: 03/14/18 g. Downtown Small Area Study Implementation Summary EDA RESOLUTION NO. 2018-05 RESOLUTION APPROVING PURCHASE AGREEMENT FOR THE ACQUISITION OF 112 WEST RIVER STREET BY THE CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY BE IT RESOLVED BY the Board of Commissioners ("Board") of the City of Monticello Economic Development Authority (the "Authority") as follows: Section 1. Recitals. 1.01. The Authority and Biffs Garage LLC (the "Seller") desire to enter into a purchase agreement (the "Purchase Agreement") pursuant to which the Authority will acquire certain property located at 112 West River Street (the "Property") in the City of Monticello (the "City") from the Seller for economic redevelopment purposes related to the revitalization of the downtown area. The Property is described in Exhibit A attached hereto. 1.02. Pursuant to the Purchase Agreement, the Authority will purchase the Property from the Seller for a total purchase price of $370,000 plus related closing costs. 1.03. The Authority finds that acquisition of the Property conforms to the City's comprehensive plan and Small Area Study, as approved by the City and Authority, and will facilitate the economic redevelopment and revitalization of this portion of the downtown area of the City. 1.04. Pursuant to Minnesota Statutes, Section 462.356, subd. 2, the Planning Commission of the City met on March 6, 2018, to review the proposed acquisition and its conformity to the City's Comprehensive Plan, and found that the acquisition is consistent with the City's comprehensive plan. Section 2. Purchase Agreement Approved. 2.01. The Authority hereby approves the Purchase Agreement in substantially the form presented to the Authority, subject to modifications that do not alter the substance of the transaction and that are approved by the President and Executive Director, provided that execution of the Purchase Agreement by those officials shall be conclusive evidence of their approval. 2.02. Authority staff and officials are authorized to take all actions necessary to perform the Authority's obligations under the Purchase Agreement as a whole, including without limitation execution of any documents to which the Authority is a party referenced in or attached to the Purchase Agreement, and any deed or other documents necessary to acquire the Property from the Seller, all as described in the Purchase Agreement. 1 Error! Unknown document property name. Approved this 14th day of March, 2018, by the Board of Commissioners of the City of Monticello Economic Development Authority. President ATTEST: Executive Director EXHIBIT A PROPERTY Those parts of Lots 13, 5 and 6, Block 52, Monticello, according to the recorded plat thereof, Wright County, Minnesota described as follows: Beginning at the most easterly corner of said Lot 13; thence on an assumed bearing of South 25 degrees 16 minutes 44 seconds West along the southeasterly line of said Lot 13, a distance of 165.36 feet to the most southerly corner of said Lot 13; thence North 64 degrees 58 minutes 26 seconds West along the southwesterly line of said Lot 13, a distance of 3.06 feet to a outside building line; thence South 24 degrees 18 minutes 51 seconds West along said outside building line, a distance of 0.27 feet to a building corner; thence North 65 degrees 40 minutes 10 seconds West along said outside building line, a distance of 44.00 feet to a building corner; thence North 24 degrees 18 minutes 51 seconds East along said outside building line, a distance of 78.00 feet to a building corner; thence South 65 degrees 41 minutes 09 seconds East along said outside building line, a distance of 3.33 feet to the northwesterly line of the Southeasterly 45.00 feet of said Lot 13; thence North 25 degrees 59 minutes 31 seconds East along said northwesterly line, a distance of 3.11 feet to the southwesterly line of the Northeasterly 85.00 feet of said Lot 13; thence South 65 degrees East along said southwesterly line, a distance of 30.00 feet to the northwesterly line of the Southeasterly 15.00 feet of said Lot 13; thence North 25 degrees 16 minutes 44 seconds East along said northwesterly line, a distance of 85.00 feet to the northeasterly line of said Lot 13; thence South 65 degrees East along said northeasterly line, a distance of 15.00 feet to the point of beginning. Error! Unknown document property name. PURCHASE AGREEMENT 112 West River Street, Monticello, Minnesota This Purchase Agreement ("Agreement") is made this day of March, 2018, by and between Biff s Garage LLC, a Minnesota limited liability company ("Seller") and the City of Monticello Economic Development Authority, a public body corporate and politic under the laws of the State of Minnesota ("Buyer"). 1. PROPERTY. Seller is the owner of property located at 112 West River Street in the City of Monticello, Minnesota, which is legally described on the attached Exhibit A ("Property"). 2. OFFER/ACCEPTANCE. In consideration of and subject to the terms and provisions of this Agreement, Buyer offers and agrees to purchase and Seller agrees to sell and hereby grants to Buyer the exclusive right to purchase the Property and all improvements thereon, together with all appurtenances. All fixtures located on the Property on the date of this Agreement are included in the purchase of the Property; provided that personal property and trade fixtures (a list of which is attached as Exhibit B) are not included in the sale of the Property. 3. PURCHASE PRICE FOR PROPERTY AND TERMS. a. PURCHASE PRICE: The total purchase price for the Property, representing the fair market value of the Property plus any compensation attributable to relocation benefits pursuant to paragraph 18 hereof, is: Three Hundred Seventy Thousand and 00/100ths Dollars ($370,000.00) ("Purchase Price"). b. TERMS: 1. EARNEST MONEY: Earnest money in the amount of Ten Thousand and 00/100ths Dollars ($10,000) (the "Earnest Money") shall be paid by Buyer to Seller upon execution of this Agreement. 2. BALANCE DUE SELLER: Buyer agrees to pay the balance of the Purchase Price to the Seller by check or wire transfer on the Closing Date according to the terms of this Agreement. 3. DEED/MARKETABLE TITLE: Subject to performance by Buyer, Seller agrees to execute and deliver to Buyer a Warranty Deed conveying marketable fee simple title to the Property, free and clear of any mortgages, liens or encumbrances other than matters created by or acceptable to Buyer, subject only to the following exceptions: i. Building and zoning laws, ordinances, state and federal regulations; ii. Reservation of minerals or mineral rights to the State of 1 518066A MMI MN325-38 Minnesota, if any; and iii. Public utility and drainage easements of record which will not interfere with Buyer's intended use of the Property. 4. DOCUMENTS TO BE DELIVERED AT CLOSING BY SELLER. In addition to the Warranty Deed required at paragraph 3.b.3. above, Seller shall deliver to Buyer at closing: a. An affidavit from Seller sufficient to remove any exception in Buyer's policy of title insurance for mechanics' and materialmens' liens and rights of parties in possession; b. A "bring -down" certificate, certifying that all of the warranties made by Seller in this Agreement remain true as of the Closing Date; C. Affidavit of Seller confirming that Seller is not a foreign person within the meaning of Section 1445 of the Internal Revenue Code; d. Well disclosure certification, if required, or, if there is no well on the Property, the Warranty Deed given pursuant to paragraph 3.b.3. above must include the following statement: "The Seller certifies that the Seller does not know of any wells on the described real property;" e. Documents or instruments required of Seller under applicable law, including any revenue or tax certificates or statements, or any affidavits, certifications or statements relating to the any known environmental condition of the Property, the presence (or absence) of wells about the Property, the presence (or absence) of storage tanks about the Property, or the extent of compliance of the Property with applicable law; and f. Any other documents reasonably required by Title (as defined in paragraph 6) or Buyer's legal counsel evidencing that title to the Property is marketable and that Seller has complied with the terms of this Purchase Agreement. 5. CONTINGENCIES. Seller's obligation to convey and Buyer's obligation to purchase the Property is contingent upon the following contingencies (the "Contingencies"): a. Approval of this Purchase Agreement by Buyer's governing body; b. Written findings by the Planning Commission of the City of Monticello that the acquisition of the Property conforms to the City Comprehensive Plan; C. Buyer conducting environmental investigations on the Property and receiving reports that are satisfactory to Buyer; and d. Buyer's determination of marketable title pursuant to paragraph 6 of this 2 518066A MMI MN325-38 Agreement. e. Review and approval by both Seller and Buyer of the Property Management Agreement described in paragraph 9.b.2. hereof. Buyer shall have thirty (30) days from the date of execution in full of this Agreement (the "Due Diligence Period") to remove or waive Contingencies a, b, c, and d (the "Buyer Contingencies"). The Buyer Contingencies are solely for the benefit of Buyer and may be waived by Buyer. Seller and Buyer shall have the full Due Diligence Period to remove or waive Contingency e. Contingency e is for the benefit of both Seller and Buyer and may be waived by both parties. If Buyer or its attorney gives written notice to Seller that all Buyer Contingencies are duly satisfied or waived, and if both parties agree that Contingency e is duly satisfied or waived, or if Seller and/or Buyer, as applicable, has not provided the other party with written notice of any issues or objections relating to the Contingencies before expiration of the Due Diligence Period, Buyer and Seller shall proceed to close the transaction as contemplated herein. If one or more of the Contingencies is not satisfied, or is not satisfied within the Due Diligence Period (or such later date as the parties may agree upon), and is not waived by Seller and/or Buyer, as applicable, this Agreement shall thereupon be void at the written option of Seller and/or Buyer, and Buyer and Seller shall execute and deliver to each other documentation effecting the termination of this Agreement. Buyer shall also deliver to Seller, at no cost to Seller, courtesy copies of all documentation gathered during the Due Diligence Period, including without limitation all survey, environmental or soil tests. As a contingent Purchase Agreement, the termination of this Agreement is not required pursuant to Minnesota Statutes Section 559.21, et. seq. 6. TITLE EXAMINATION/CURING TITLE DEFECTS. Buyer shall, at its expense and within a reasonable time after Seller's acceptance of this Agreement, obtain a commitment for title insurance ("Commitment") for the Property from Preferred Title ("Title"). Buyer shall have 14 days after the later of receipt of the Commitment and execution in full of the Purchase Agreement to examine the Commitment and to deliver written objections to title, if any, to Seller, or Buyer's right to do so shall be deemed waived. Seller shall have until the end of the Due Diligence Period (or such later date as the parties may agree upon) to make title marketable, at Seller's cost. In the event that title to the Property cannot be made marketable or is not made marketable by Seller within the Due Diligence Period, then this Agreement may be terminated at the option of Buyer. 7. ENVIRONMENTAL INVESTIGATIONS. Buyer acknowledges that it has been authorized by Seller to enter the Property and conduct environmental investigations of the Property. 8. CLOSING DATE. The date of closing shall be April 16, 2018, or such earlier date as is mutually agreed by the parties ("Closing Date"). Delivery of all papers and the closing shall be made at the offices of the Title Company or at such other location as is mutually agreed upon by the parties. All notices to Buyer shall be made as provided in Section 18 of this Agreement. 3 518066A MMI MN325-38 9. POSSESSION/HOLDOVER TENANCY. a. Possession. Seller agrees to deliver possession of the Property to Buyer no later than April 1, 2019 (the "Vacation Date"); unless the parties mutually agree to negotiate a month-to-month lease extending beyond the Vacation Date and allowing Seller to occupy the Property beyond the Vacation Date. The lease rate for such month-to-month lease shall be sufficient to pay all costs of utilities, prorated property taxes, and other standard operating costs in connection with Seller's occupancy of the Property after the Vacation Date. Buyer shall take full possession of the Property on the Vacation Date or such later date agreed to by the parties as described in this paragraph. b. Holdover Tenancy. 1. Seller shall be authorized to occupy the Property and to conduct Seller's regular business activities upon the Property until the Vacation Date (the "Holdover Period"). Buyer waives any right to receive rental payments from the Seller during the Holdover Period, except that Seller shall pay all standard operating costs related to Seller's business activities (including without limitation utilities and prorated property taxes) during the Holdover Period. 2. The Seller shall perform all agreed property management responsibilities pursuant to a mutually acceptable Property Management Agreement to be executed by Seller and Purchaser on the Date of Closing. Buyer shall deliver the proposed Property Management Agreement to Seller within ten (10) days after execution in full of this Agreement for Seller's review and approval. The Seller shall be responsible for all operating expenses and repair costs related to the Property, provided that if a repair deemed necessary to the continued occupancy of the Property is estimated to exceed $1,000, the Seller is not obligated to make such repair on the condition that Seller notifies the Buyer in writing that Seller declines to make such repair, vacates the Property as soon as practicable after such notice, but no later than 30 days after giving such notice. The parties expressly agree and understand that the Seller shall not enter into any third -party leases for any portion of the Property on or after the date of this Agreement. 3. At Closing, Seller shall place Ten Thousand and 00/100ths Dollars ($10,000) into an escrow fund held by an escrow agent (the "Escrow Funds") to ensure performance of Seller's required property management responsibilities, prorated property tax payments for taxes assessed in 2018 and payable in 2019, and vacation of the Property on the Vacation Date. The parties shall enter into an escrow agreement setting forth the specific conditions for release of the Escrow Funds. Buyer shall deliver the proposed Escrow Agreement to Seller within ten (10) days after execution 4 518066A MMI MN325-38 in full of this Agreement for Seller's review and approval. Seller and Buyer shall each pay one-half of any fee charged by the escrow agent. 10. SELLER'S REPRESENTATIONS AND WARRANTIES. Seller hereby represents and warrants to Buyer and Seller will represent and warrant to Buyer as of the Closing Date that: a. Sewer and water. Seller warrants that to the best of Seller's knowledge, the Property is connected to City sewer and water. b. Mechanics' Liens. Seller warrants that, prior to the closing, Seller shall pay in full all amounts due for labor, materials, machinery, fixtures or tools furnished within the 120 days immediately preceding the closing in connection with construction, alteration or repair of any structure upon or improvement to the Property caused by or resulting from any action of Seller. C. Notices. Seller warrants that Seller has not received any notice from any governmental authority as to violation of any law, ordinance or regulation in connection with the Property. d. Tenants. Seller warrants that there are no tenants on the Property. e. Broker Commission. Seller warrants that no broker, agent, or representative has been engaged or shall be entitled to any commission in connection with such transaction. Seller agrees to indemnify, defend and hold the Buyer harmless from the claims of any broker, real estate agent or similar party in connection with such transaction. f. Condemnation. Seller warrants that there is no pending or, to the actual knowledge of Seller, threatened condemnation or similar proceeding affecting the Property or any portion thereof, and Seller has no actual knowledge that any such action is contemplated. g. Legal Proceedings. There are no legal actions, suits or other legal or administrative proceedings, pending or threatened, that affect the Property or any portion thereof, and Seller has no knowledge that any such action is presently contemplated. h. Legal Capacity. Seller has the legal capacity to enter into this Agreement. Seller has not filed, voluntarily or involuntarily, for bankruptcy relief within the last year under the United States Bankruptcy Code, nor has any petition for bankruptcy or receivership been filed against Seller within the last year. i. Methamphetamine Production. To the best of Seller' knowledge, methamphetamine production has not occurred on the Property. Seller's representations and warranties set forth in this paragraph shall be continuing and are 5 518066A MMI MN325-38 deemed to be material to Buyer's execution of this Agreement and Buyer's performance of its obligations hereunder. All such representations and warranties shall be true and correct on or as of the Closing Date with the same force and effect as if made at that time; and all of such representations and warranties shall survive closing and any cancellation or termination of this Agreement, and shall not be affected by any investigation, verification or approval by any part hereto or by anyone on behalf of any party hereto. Seller agrees to defend, indemnify, and hold Buyer harmless for, from and against any loss, costs, damages, expenses, obligations and attorneys' fees incurred should an assertion, claim, demand or cause of action be instituted, made or taken, which is contrary to or inconsistent with the representations or warranties contained herein. 11. BUYER'S REPRESENTATIONS AND WARRANTIES. Buyer represents and warrants that: a. Legal Capacity. Buyer has the legal capacity to enter into this Agreement. Buyer has not filed, voluntarily or involuntarily, for bankruptcy relief within the last year under the United States Bankruptcy Code, nor has any petition for bankruptcy or receivership been filed against Buyer within the last year. b. Broker Commission. Buyer warrants that no broker, agent, or representative has been engaged or shall be entitled to any commission in connection with such transaction. Buyer agrees to indemnify, defend and hold the Seller harmless from the claims of any broker, real estate agent or similar party in connection with such transaction. 12. AS -IS SALE. Subject to Buyer's right to terminate this Agreement pursuant to section 5 above, Buyer acknowledges and represents that Buyer and Buyer's agents will have had opportunity during the Due Diligence Period to examine the Property, sub -surface conditions, environmental conditions, the suitability of the Property for Buyer's intended use and all other aspects of the Property. As such, Buyer agrees that, subject to the closing of this transaction, Buyer is purchasing the Property on an "AS IS", "WHERE IS" and "WITH ALL FAULTS" basis. Seller disclaims any warranty that the Property is suitable for Buyer's use, and other than as specifically set forth herein and subject to the terms of the Property Management Agreement, SELLER MAKES NO WARRANTY WITH RESPECT TO THE PROPERTY OR ANY PART THEREOF, EXPRESS OR IMPLIED, AND SELLER SPECIFICALLY DISCLAIMS ANY WARRANTY WITH RESPECT TO THE CONDITION OF THE PROPERTY, ENVIRONMENTAL OR OTHERWISE, AND OF FITNESS FOR A PARTICULAR PURPOSE. Subject to the terms and conditions of the Property Management Agreement, Seller shall not be liable to buyer or any third party for any consequential, special or punitive damages arising out of the condition of the property, or the inability to use the property or any part thereof. Nothing contained in this section shall be construed as limiting any rights Buyer may have to cancel this Agreement based upon a contingency benefiting Buyer pursuant to the terms hereof. The limitations and other provisions of this section 12 shall survive Closing. 13. CLOSING COSTS/RECORDING FEES/DEED TAX. At Closing, Seller shall pay: (a) prorated property taxes through the Closing Date; (b) any special assessments levied against 6 518066A MMI MN325-38 the Property and due and payable in the year of Closing; (c) the cost of any documents required to clear title or to evidence marketable title, including fees and charges to record such documents; (d) any operating costs of the Property up to the Closing Date; and (e) Seller's legal fees in excess of $2,250. Buyer shall pay: (a) costs of any environmental investigation, survey, or other tests ordered by Buyer; (b) costs of an initial title commitment, title insurance and endorsements; (c) recording fees and charges related to the filing of the Warranty Deed from the Seller; (d) any transfer or deed taxes due as a result of this transaction; (e) all closing fees customarily charged by the title company; (f) Buyer's legal and accounting fees; and (g) Seller's legal fees up to a maximum of $2,250. 14. INSPECTIONS. From the date of this Agreement to the Closing Date, Buyer, its employees and agents, shall be entitled to enter upon the Property to conduct such surveying, inspections, investigations, soil borings and testing, and drilling, monitoring, sampling and testing of groundwater monitoring wells, as Buyer shall elect. Buyer shall also be entitled to a general walkthrough inspection within five days of the Closing Date. 15. INSURANCE; RISK OF LOSS. a. If there is any loss or damage to the Property between the date hereof and the Closing Date, for any reason including fire, vandalism, flood, earthquake or act of God, the risk of loss shall be on Seller. If the Property is destroyed or substantially damaged before the Closing Date, this Agreement shall become null and void, at Buyer's option. At the request of Buyer, Seller agrees to sign a cancellation of Purchase Agreement. b. Following the Closing Date, the Buyer shall procure and maintain property insurance, with a minimum coverage of $500,000, against the Property. Buyer shall assume all risk of damage or destruction to the Property following the Closing Date. Seller shall maintain commercial general liability insurance and renter's insurance in an amount adequate to protect Seller's interest in the Property until the Vacation Date. 16. DEFAULT/REMEDIES. If Buyer defaults under this Agreement, Seller has the right to terminate this Agreement by giving written notice of such election to Buyer, which notice shall specify the default. If Buyer fails to cure such default within 15 days of the date of such notice, Seller may terminate this Agreement and retain the Earnest Money, time being of the essence of this Agreement. The termination of this Agreement will be the sole remedy available to Seller for such default by Buyer, and Buyer will not be further liable for damages. If Seller defaults under this Agreement, Buyer shall have the right (i) to terminate this Agreement and to receive reimbursement of the Earnest Money from Seller, or (ii) to enforce and recover from Seller specific performance of this Agreement. The termination of this Agreement or the enforcement and recovery from Seller of specific performance of this Agreement shall be the sole remedies available to Buyer for such default by Seller, and Seller shall not be further liable for damages. 17. RELOCATION BENEFITS; INDEMNIFICATION. Seller acknowledges that in the event that Seller is eligible for relocation assistance and benefits, the Purchase Price includes 7 518066A MMI MN325-38 compensation for any and all relocation assistance and benefits for which Seller may be eligible, including benefits for loss of going concern. The Seller, at Seller's sole discretion, shall determine any portions of the Purchase Price allocable to relocation benefits. The provisions of this paragraph shall survive closing of the transaction contemplated by this Agreement. For purposes of this Agreement, "relocation assistance and benefits" shall have the meanings ascribed to them by the Uniform Relocation Assistance and Real Property Acquisition Policies Act, 42 U.S.C. Sections 4601-4655 (the federal URA) and the regulations implementing the federal URA, 49 C.F.R. Sections 24.1-24.603. 18. NOTICE. Any notice, demand, request or other communication which may or shall be given or served by the parties, shall be deemed to have been given or served on the date the same is personally served upon one of the following indicated recipients for notices or is deposited in the United States Mail, registered or certified, return receipt requested, postage prepaid and addressed as follows: SELLER: Biff's Garage LLC dba Union Speed & Style Attn: Jordan Dickinson and Jesse Dickinson 112 West River Street Monticello, MN 55362 With a copy to: Ailana T. McIntosh, Esq. Foley & Mansfield, PLLP 250 Marquette Avenue, Suite 1200 Minneapolis, MN 55401 BUYER: City of Monticello Economic Development Authority Attn: Executive Director 505 Walnut Avenue, Suite 1 Monticello, MN 55362 With a copy to: Martha Ingram, Esq. Kennedy & Graven, Chartered 470 U.S. Bank Plaza 200 South Sixth Street Minneapolis, MN 55402 8 518066A MMI MN325-38 19. NOTICE OF 1031 EXCHANGE. The Buyer herein acknowledges that it is the intention of the Seller to conduct a Tax -Deferred Exchange pursuant to Section 1031 of the Internal Revenue Code of 1986, as amended (the "Code"), and that the Seller's rights under this Purchase Agreement, at Seller's election, may be assigned to Commercial Partners Exchange Company, LLC, which is a "qualified exchange intermediary" within the meaning of said Section 1031. In such case, the Buyer shall sign such documents, and otherwise reasonably cooperate, as may be reasonably necessary to complete the tax-deferred exchange, including receiving the Deed from a third party, provided that Seller shall pay any direct cost incurred by Buyer as a result of such cooperation. However, any warranties expressed in this Agreement shall remain and be enforceable between the parties executing this Agreement. This Agreement is part of an integrated, interdependent, mutual and reciprocal plan intended to effectuate an exchange by Seller of like -kind real properties pursuant to and in accordance with the provisions of Section 1031 of the Code. The Buyer shall execute and provide to Seller prior to closing an acknowledgement that Buyer has received written notice of the assignment of the Seller's rights under this Purchase Agreement to Commercial Partners Exchange Company, LLC. 20. ENTIRE AGREEMENT. This Agreement, including exhibits attached hereto, and any amendments hereto signed by the parties, shall constitute the entire agreement between Seller and Buyer and supersedes any other written or oral agreements between the parties relating to the Property. This Agreement can be modified only in a writing properly signed on behalf of Seller and Buyer. 21. SURVIVAL. Notwithstanding any other provisions of law or court decision to the contrary, the provisions of this Agreement shall survive closing. 22. BINDING EFFECT. This Agreement has been duly and validly authorized, signed and delivered by Seller and Buyer, constitutes the valid and binding obligations of Seller and Buyer, and is enforceable in accordance with its terms. (the remainder of this page intentionally left blank) 9 518066A MMI MN325-38 IN WITNESS WHEREOF, the undersigned have executed this Agreement on the date and year above. Buyer: Seller: City of Monticello Economic Development Biff's Garage LLC Authority By: Its: President By: Its: Executive Director LE 10 518066A MMI MN325-38 Its: EXHIBIT A Legal Description of Property Those parts of Lots 13, 5 and 6, Block 52, Monticello, according to the recorded plat thereof, Wright County, Minnesota described as follows: Beginning at the most easterly corner of said Lot 13; thence on an assumed bearing of South 25 degrees 16 minutes 44 seconds West along the southeasterly line of said Lot 13, a distance of 165.36 feet to the most southerly corner of said Lot 13; thence North 64 degrees 58 minutes 26 seconds West along the southwesterly line of said Lot 13, a distance of 3.06 feet to a outside building line; thence South 24 degrees 18 minutes 51 seconds West along said outside building line, a distance of 0.27 feet to a building corner; thence North 65 degrees 40 minutes 10 seconds West along said outside building line, a distance of 44.00 feet to a building corner; thence North 24 degrees 18 minutes 51 seconds East along said outside building line, a distance of 78.00 feet to a building corner; thence South 65 degrees 41 minutes 09 seconds East along said outside building line, a distance of 3.33 feet to the northwesterly line of the Southeasterly 45.00 feet of said Lot 13; thence North 25 degrees 59 minutes 31 seconds East along said northwesterly line, a distance of 3.11 feet to the southwesterly line of the Northeasterly 85.00 feet of said Lot 13; thence South 65 degrees East along said southwesterly line, a distance of 30.00 feet to the northwesterly line of the Southeasterly 15.00 feet of said Lot 13; thence North 25 degrees 16 minutes 44 seconds East along said northwesterly line, a distance of 85.00 feet to the northeasterly line of said Lot 13; thence South 65 degrees East along said northeasterly line, a distance of 15.00 feet to the point of beginning. A-1 518066A MMI MN325-38 EXHIBIT B Trade Fixtures B-1 518066A MMI MN325-38 File #G1710011 Report Type Restricted Appraisal Report Prepared BY: Erin VVaytos.Appraiser William R. Waytas, Appraiser Nagell Appraisal Incorporated 12805 Highway 55, Suite 300 55441 :ax: 952.544.8969 NAGELL APPRAISAL INCORPORATED 12805 Highway 55, #300 Minneapolis: 952-544-8966 Plymouth, MN 55441 St. Paul: 651-209-6159 Established in 1968 Central Fax: 952-544-8969 City of Monticello December 15, 2017 Attn: Jim Thares, Economic Development Director 505 Walnut Street Monticello, MN 55362 To Jim Thares: In accordance with your request, a Restricted Appraisal Report for internal specified use only (less extensive collection, verification, analysis, viewing, etc., used in the valuation approaches) has been made on the following described property. See scope of work within report. Subject Property: Auto Shop Property 112 River Street West Monticello, MN 55362 Described below is a summary of the appraisal report contained herein. Progerty Overview The subject is an auto shop property located in Monticello. Monticello is a community situated along the banks of the Mississippi River and the Interstate 94 corridor approximately half -way in-between the metro and St. Cloud. The subject is 3,432 SF and has a small office area and the rest of the space is used for shop space for working on vehicles and motorcycles. The subject site is 5,014 SF with majority of the yard being encumbered by the building and the remaining areas is flagpole access to River Street West, see aerial. Typically, auto shop properties require adequate to good onsite parking for storage for vehicles that are being worked on, employee parking, and customer parking. However, this is somewhat offset due to the subject being located adjacent to the City public parking lot. Current owner purchased the subject for $250,000 in 2006, which was towards the top of the market prior to the Great Recession. Majority of markets and larger communities are back to pre -recessions values with slight increase. Overall the subject is rated to have average appeal and to be in average condition. Report Use Decision making purposes regarding a potential property swap lnfPnrlPrl 11QPr City of Monticello Attn: Jim Thares, Economic Development Director 111 Letter of Transmittal — Continued Extraordinary Assumptions None Hypothetical Conditions None Property Rights Appraised — Fee Simple Interest: The subject is 100% owner occupied Property Components Appraised — Real Estate: The appraised value includes the real estate value opinion. — Furniture, Fixtures, & Equipment (FF&E): The appraised value does not include personal property or FF&E. Appraised value does not include any tanks, pumps, equipment, etc. Appraised value reflects real estate only. — Business Value: The appraised value does not include any business value. Highest and Best Use Conclusions — As Vacant: Assemble with adjacent properties for development — As Improved: Current office/shop related use Valuation Methodology Given the highest and best use, the following approaches are used: — Cost Approach: Not applied due to subjective depreciation estimates and scope of assignment — Sales Comparison Approach: Competing industrial properties will be considered. — Income Approach: Not applied due to owner occupancy and scope of the assignment. iv Letter of Transmittal — Continued The following value is concluded: FINAL VALUE OPINION (as -is, effective December 5, 2017, fee simple): $290,000 Exposure Time / Marketing Time Our company has 11 employees, has been in business since 1968 and has sufficient knowledge, education, experience, resources and/or contacts to competently complete this assignment. The accompanying report contains data secured from my personal investigation and from sources considered to be reliable; however, correctness is not guaranteed. To the best of my knowledge and belief, the statements contained in this report are true and correct. Neither my employment to make this appraisal, nor the compensation, is contingent upon the value reported. This report has been prepared in conformity with the code of professional ethics and standards of professional appraisal practice of the Appraisal Institute and appraisal standards set forth by Uniform Standards of Professional Appraisal Practice. Please contact us if you have further questions. Sincerely, Erin Waytas Trainee Appraiser MN 40368620 www.nagelimn.com William R. Waytas Certified General MN 4000813 V Final values reflect "market exposure" time of under 1 year before the effective Exposure Time: date of the appraisal. Changes in the market, use, lease and/or building subsequent to the effective appraisal date could impact value. Marketing Time: Marketing times for appropriately priced properties is generally 12 months or less after the effective date of the appraisal. Our company has 11 employees, has been in business since 1968 and has sufficient knowledge, education, experience, resources and/or contacts to competently complete this assignment. The accompanying report contains data secured from my personal investigation and from sources considered to be reliable; however, correctness is not guaranteed. To the best of my knowledge and belief, the statements contained in this report are true and correct. Neither my employment to make this appraisal, nor the compensation, is contingent upon the value reported. This report has been prepared in conformity with the code of professional ethics and standards of professional appraisal practice of the Appraisal Institute and appraisal standards set forth by Uniform Standards of Professional Appraisal Practice. Please contact us if you have further questions. Sincerely, Erin Waytas Trainee Appraiser MN 40368620 www.nagelimn.com William R. Waytas Certified General MN 4000813 V TABLE OF CONTENTS SUMMARY OF IMPORTANT FACTS & CONCLUSIONS ............................................... 7 VALUE TYPE, CONDITION & STABILITY OF PROPERTY ........................................... 8 INTENDED USE OF THE APPRAISAL........................................................................... DATEOF APPRAISAL....................................................................................................8 PROPERTYRIGHTS APPRAISED................................................................................. 9 PROPERTY COMPONENTS APPRAISED.................................................................... 9 SCOPE OF THE APPRAISAL REPORT.......................................................................10 IDENTIFICATION..........................................................................................................11 REALESTATE TAXES.................................................................................................11 SUBJECT SALES & BUILDING HISTORY...................................................................12 SUBJECTMARKET OVERVIEW..................................................................................13 LOCATIONMAP...........................................................................................................14 SITEDESCRIPTION.....................................................................................................15 PLATMAP....................................................................................................................16 AERIALVIEW...............................................................................................................17 DESCRIPTION OF IMPROVEMENTS..........................................................................18 BUILDINGSKETCH......................................................................................................20 SUBJECTPHOTOGRAPHS.........................................................................................21 HIGHESTAND BEST USE...........................................................................................24 COSTAPPROACH.......................................................................................................24 INCOMEAPPROACH...................................................................................................24 SALES COMPARISON APPROACH............................................................................25 RECONCILIATION........................................................................................................32 EXPOSURE TIME / MARKETING TIME.......................................................................32 DEFINITIONS...............................................................................................................33 ENVIRONMENTAL & STRUCTURAL ISSUES.............................................................34 EXTRAORDINARY ASSUMPTIONS & HYPOTHETICAL CONDITIONS ..................... 34 ASSUMPTIONS AND LIMITING CONDITIONS............................................................ 35 CERTIFICATION...........................................................................................................37 QUALIFICATIONS........................................................................................................38 ADDENDA TO APPRAISAL REPORT.......................................................................... 41 vi SUMMARY OF IMPORTANT FACTS & CONCLUSIONS ,tt r yt. J r _ • ,�. ••� '�u.w4� ?we'_ � ,moi. - r!�,,,- , ,�':,. General Description: Auto Property Appraisal Report: Restricted Appraisal Report Current Use: Auto Shop Special Assumptions: None; see rear of report for standard assumptions. Site Size: 5,014 SF, 0.12 acres Building Size (GBA): 3,432 SF Age: 1948 Quality/Appeal I Condition: Average ( Average Zoning: CCD — Central Community District Current office/shop related use Highest and Best Use: Property Rights Appraised: Fee Simple Interest Property Components Appraised: Real Estate Only f Cost Approach Not applied Sales Comparison Approach $290,000 Income Approach Not applied FINAL VALUE OPINION (As -Is) $290,000 VALUE TYPE, CONDITION & STABILITY OF PROPERTY Type of Value: This report provides an opinion of Market Value. Condition of Value: This report provides an opinion of the as -is value. Occupancy of The subject is 100% owner occupied. Property: use or rely upon any part of this report without the prior written INTENDED USE OF THE APPRAISAL DATE OF APPRAISAL Effective Date: The client intends to use the appraisal for decision making re_gardin_g Inspection Date: potential property swap. This appraisal assignment was requested by Date of Report: the named client for its sole use. No party, other than the client, may Intended Use: use or rely upon any part of this report without the prior written authorization of both the named client and the appraiser. This report is not valid unless it contains the original signatures in blue ink. Any unauthorized third party relying upon any portion of this report does so at its own risk. City of Monticello Intended Users: Attn: Jim Thares, Economic Development Director DATE OF APPRAISAL Effective Date: December 5, 2017 Inspection Date: December 5, 2017 Date of Report: December 15, 2017 PROPERTY RIGHTS APPRAISED Real property ownership consists of a group of distinct rights. There are two primary property rights, Fee Simple and Leased Fee (as defined by The Appraisal of Real Estate, 13 Edition, Appraisal Institute). Fee Simple Interest: Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat. Note: This would typically reflect an owner -occupied property. When the property rights appraised are the unencumbered fee simple interest of the real estate, the appraised value is subject to normal easements for drainage, public streets and utilities, if any. The effect of any existing mortgage or delinquent taxes on the subject property has not been considered in this appraisal. Leased Fee Interest: The ownership interest held by a lessor (landlord), which includes the right to the contract rent specified in the lease plus reversionary right when the lease expires. The lessor's interest in a property is considered a leased fee interest regardless of the duration of the lease, specified rent, the parties to the lease, or any of the terms in the lease contract. A leased property, even one with rent that is consistent with market rent, is appraised as a leased fee interest, not as fee simple interest. Even if the rent of lease terms are not consistent with market terms, the lease fee interest must be given special consideration and is appraised as a leased fee interest (rhe Appraisal of Real Estate, 13"' Edition, Page 114). The subject is 100% owner occupied, therefore fee simple interest is appraised. PROPERTY COMPONENTS APPRAISED Real Estate: The appraised value includes the real estate value opinion. The methods utilized for the real estate valuation include: i Sale Comparison Approach FF&E: No FF&E or personal property is included in the appraised value. Appraised value reflects real estate only. Business Value: There is no business value included in the appraised value. Z SCOPE OF THE APPRAISAL REPORT USPAP defines Scope of Work as: The type and extent of research and analyses in an assignment. For each appraisal, appraisal review and appraisal consulting assignment, an appraiser must: 1) Identify the problem to be solved, 2) Determine and perform the scope of work necessary to develop credible assignment results; and 3) Disclose the scope of work in the report. 1) Provide a reasonably supported opinion of value as it relates to the intended use. Per assignment request (see addenda for engagement letter), the following degree of research 2) and analysis has been made. The narrative format used is a Restricted Appraisal Report, which is intended to comply with the reporting requirements set forth under Standards Rule 2-213 of USPAP. See individual approaches for further detail. The scope of work for this appraisal includes: • a) Property Identification: Public record, plat maps, zoning maps and aerial photographs were used to identify the subject property. • b) Property Viewing: A viewing of the subject property (exterior and interior), and neighborhood by the appraiser. Physical factors: Based on property viewing and conversations with the client, city and county officials. Lot size is based on county records. Economic Factors: Consisted of gathering of information from market experts, city and/or county offices, and internet about the region, community, neighborhood, zoning, utilities, and any pending projects in the area that may affect the subject property. • c) Extent of Data Researched: Sales data of competing properties within the subject market area were given primary consideration. The most relevant data is used in this report. 3) Sources include, appraiser data files, assessor, internet, developers, agents, MLS, etc. In addition, during the course of appraisal practice and of this appraisal process, the appraiser has had ongoing discussions with market participants (buyers, sellers, property managers, real estate agents/brokers, appraisers, etc.) and/or viewed market data in relation to how the current real estate market may impact the subject value. The appraiser has not researched the title or ownership records. • d) Type and Extent of Analysis Applied at Opinions or Conclusions: The most recent, similar and proximate data has been used. The data used will be analyzed qualitatively. Less extensive collection, verification, analysis and viewing has been used in the valuation approaches, given the purpose and intended use of the report. Although a restricted report typically has brief statements and conclusions, with most data and analysis retained in the appraiser's work file, however, for purposes of this assignment, most of the appraiser's work file is within the report as the data, analysis (qualitative grid) and conclusions are included in the report and are briefly summarized to assist the client in understanding the opinions and conclusions set forth. A final value opinion will be discussed and correlated. The data used was obtained from sources considered credible, yet its accuracy is not guaranteed. If found to be otherwise, appraised value given in this report could change. 10 IDENTIFI CA TION Street Address (per County): 112 West River Street Payable 2017 Monticello, MN 55362 PID # (per County): 155010052131 N/A Sect -11 Twp -121 Range -025 ORIGINAL PLAT MONTICELLO Block -052 TH PRTS 2.3%1$0.61 OF LTS13,5&6 DES BEG AT MOST ELY COR OF LT13 TH S 25D16'44"W ALG Special Assessments / Solid Waste Fee/Other SELY LN OF LT13 165.36FT TO MOST SLY COR OF LT13 TH N64D58'26"W ALG N/A N/A SWLY LN OF LT13 3.06FT TO OUTSIDE BLDG LN TH S24D18'51"W ALG SD COUNTY ASSESSOR'S VALUE OUTSIDE BLDG LN .27FT TO BLDG COR TH N65D40'10"W ALG SD OUT SIDE Legal Descriptions: BLDG LN 44FT TO BLDG COR TH N24D18'51"E ALG SD OUTSIDE BLDG LN Land 78FT TO BLDG COR TH S 65D41'09"E ALG SD BLDG LN 3.33 FT TO NWLY LN $39,300 OF SELY 45FT OF SD LT13 TH N25D59'31 "E ALG SD NWLY LN 3.11 FT TO If 3 700 SWLY LN OF NELY 85FT OF LT13 TH S65D E ALG SWLY LN 30FT TO NWLY LN TOTAL OF SELY 15FT OF SD LT13 TH N25D 16'44"E ALG SD NWLY LN 85FT TO NELY $93,000 LN OF LT13 TH S65D E15FT TO POB The Fee Owner Biffs Garage, LLC (taxpayer) (per County): Bruce & Marilyn Springborg (fee owner) Census Tract #: 1002.03 REAL ESTATE TAXES Taxes, per County Records a Payable 2017 Payable 2018 Tax $2,092.97 N/A Tax ratio /per SF 2.3%1$0.61 NIA Special Assessments / Solid Waste Fee/Other 615.03 $2,708.00 N/A N/A Total Tax & Assessments: COUNTY ASSESSOR'S VALUE Payable 2017 Payable 2018 ! Land $39,300 $39,300 Building If 3 700 IL3.700 TOTAL $931000 $93,000 $/SF of GBA $27.10 per SF $27.10 per SF Typical Tax Ratios by Property Type Commercial (retail, office, industrial, hotel, other, etc.) 3.0%-4.0% Residential (multi -family, apartment, etc.) 0.9%-1.5% Single-family dwellings 0.8%-1.5% The appraised value given in this report assumes any/all special assessments, and/or liens are paid in full and that there are no delinquent taxes, fees, payments, association dues, etc. Should it be found that any of these exist the amount should be deducted from the appraised value. Appraiser did not research these items; typically, a title search would reveal any of these. Appraised value assumes the street improvements are complete. Comments: Taxes appear to be on the lower end of range given appraised value. 11 SUBJECT SALES & BUILDING HISTORY Listing History: The subject does not appear to be actively listed for sale. Sales History: Pending Sale: Sale Price: n/a Sale Date: n/a Buyer: n/a Seller: n/a Terms: Typical Source: Realist Current owner purchased the subject in 2006 for $250,000 which was near the top of the market prior to the Great Recession. No known or reported sales were found within the past 3 years. None reported Building History: Per county sketch the subject was constructed in 1948; however prior listings for the subject (2005 and 2006) report the age of the subject being 1980 and 1999. Lease History: The subject is 100% owner occupied, no reported lease. Leasehold Interest: Association Dues: None apparent, subject is currently owner occupied. The subject does not appear to be a part of a CIC. 12 SUBJECT MARKET OVERVIEW City & Neighborhood: Monticello is located about 45 minutes northwest of Downtown Minneapolis and 40 minutes southeast of St. Cloud. Access to Interstate 94 is conveniently located near the subject parcel. Interstate 94 provides direct access to the Twin Cities Metro Area, St. Cloud, and surrounding communities. Monticello has a reputation as a stable community, with nearby shopping and access to many major roadways. Access to Downtown and surrounding communities is considered average. Major shopping and commerce are located within the City of Monticello. No other apparent adverse influences. Market Conditions: Local (Wright county) Industrial Property Listings: 0 active listings listing Industrial Property Sales in the subject area: 4 sales (past year) The current subject market is considered to be relatively balanced. Not uncommon for sales to be between related parties or word-of-mouth transactions, as such limited active listings. Market Conditions: State / National: The macro economy (international, national, state, etc.) was deemed to be poor since its peak in 2006, but is showing signs of bottoming out in 2010. Many economists have termed the economic decline as the "The Great Recession." Many property types did j experienced significant decline during the recession. While total recovery is expected to span several years, recent trends indicated some recovery is taking place. Since mid -2010, the economy has shown slow/stable recovery, the unemployment rate has improved, most property types have shown stabilized pricing, with some value growth in good/close-in markets. However, since, many properties have largely recovered. Current Market List Current $/SF Location GBA Cate List Price 16783 Toronto { Prior Lake 5,700 SF October 2017 $510,000 $89.47 Auto shop property with onsite parking. Market participant comments/observations: Prime auto shop properties require good frontage on a busy road. Including good frontage, buildings with an appealing fagade stand out. Generally, up kept and visually pleasing neighborhood facilities have stronger appeal for market participants. Demand is approximately four times more than the supply. Most sales are never listed on the market due to related parties purchasing, employing purchasing, tenant purchase, being approached, etc. It can be difficult to get a foot hold into the auto shop market. Commercial/shop properties with good yard space have strong appealing in the market per Wayne Elam. Auto shops in particular require adequate onsite parking for parking cars that are being worked on. 13 LOCATION MAP ColdRodcvi9e, – C H I S A 0 0 Balsam 4 t . • t0.r 0mocl, i 4Ce ntW � °.hfleervvetx � ; Taylo' i........_........_ ............... ...... .C._... '_,_ Becker C.•...�.. Llnastra+n nCenterCRV a St. Francis .• t - 9A*Ct 8etlted i CRY Promm ' Lake 1M o9 .e ...... ............ • Y Oak .. Ot0�0 .`O.scede Wretld� �' 1 s ♦ .. X24! .a ..:. .....y...; .� : .. ...... Atr,Ondaie 's Otsego s- A N O K aA LAe a East i NRm Forest Leke FarrNgton ` W R 1 O K T f�bertv®a + ti I *pie Lake' _.. St. Allrileel` r • • t 14 � 'c� +Ford%—r Adm Cantere6utfab .. t0Ai #A N N E S O T A NortA .Litchfield : Fork Grow `• �r,�, 10 .D—vin Corcoran. a E F. r' E R "L2> s • .�Ccdtford Maple lake Deseel '�_, Waverly. + Eagle ke ,M1Tasningbr HDWWdLde Martroae Lake e.A Pe' ace H E N N E P �.N�Delen ..... ....��s ........ldaPxldOlnce ��a �Orono° ..._............ i ..._..........._... (All .. �!LargLeew,fPl n Mkbte� _ t >rs Mound. 1° or�Caa, ��L paA1 d72' m +StverLOke "Q4YWood,. MbrhgtrFata+ ' + `TMlCrr�.9 H,tcFrtaOrs Lester Pferie......................... °Liir¢ds10r r .. y' Lake so o ~ t Far* Cram ,Yrts ChenMeean 'den ��1 M C L E O D 212 glOdidnpton C A R V E R { Tj +Yo%xV Ams1ca oW Wmpels'..u.. Gbncae Ruo u"{ �9uRalr aNmwood DeWgr4n e Lake_a5te vert 211 GreeA Hem" i •-' 161 *&owrtm ..... + - . Prior Laim. New Auburn —^ Oneka Lake Ide , c t or L.atwA rk. :... Bear Sonl6rad is ! X36 ` a I-' c se fair• Mehlaned, .. a�piwata< Be S t N vood o eke Brtlo . Noft WASH6uOTON T Lakekmde?, Hudsm a Roberta, Hm a 18 . + i1A0 L Cattapa i *Mw Faf!s i se ion °a � Rosemou±t ��e- Tri D A K O T A 35 lift- St N' A? 4 it at W 1610 r 1 Y '� f CDw,tq-Raart 14 NWet 1e ski stn st w 033�°V � 'a0°�' � ter`.`` � '�,�� .,. t �, .. ,•�•' • -. or etw or Dundes Rd 95rtn St NE a Q ,,Meadow + 14 SITE DESCRIPTION Dimensions: Irregular, flagpole access Gross Site Area: 5,014 SF, 0.12 acres, per Realist and aerial GIS measure Useable Site Area: Appears 100% Topography / Shape / Low: Mostly level / Rectangular with flagpole access / None apparent Soil conditions: Assumed to be stable Utilities: City Water / City Sewer Off -Site Improvements: Typical street & utility improvements; Frontage: River Street West Access to site (#): River Street West (1) Visibility: Average for use Flood hazard zone: Appears no, Zone X, Map #2705410005B, Date November 1, 1979 Apparent Easements: Typical utility and drainage assumed; appears there may be some driveway/access easements to subject property; if found to be otherwise appraised value could differ Encroachments: None apparent Unusual Conditions: None apparent Zoning: CCD, Central Community District — it appears the current use may be grandfathered under zoning. Appraised value assumes the current use can continue going forward, if found to be otherwise appraised value could differ. Current Use: Office / Shop — Auto Bus Line: None apparent. Excess / Surplus Land None apparent; smaller land to building ratio Functional Adequacy: Average Surrounding Uses: N City public parking E Church S Commercial W City public parking Distance to Major Road: Less than a block to Highway 25 which connects to interstate 94 Subject is located on the fringe of the downtown commercial area. The subject is rated to have average overall visibility for use. Limited to nil onsite parking available for the subject however, adjacent to the subject is city public parking. Reportedly no vehicles can be parked in the parking lot overnight. No apparent adverse influences. 15 PLAT MAP Per county. 16 r { r Ad �. )f Davlee , 3 Salon ` 0o ng Its Sit Ie �...- Lucille Murray s%% 4 /ti Studio-Dane'°�r f •,� i i % Walk in GI n t II Monticellon OF t - s Tax ServiceA t$� = f DESCRIPTION OF IMPROVEMENTS Subject Data Type of Building: Gross Building Area: Office / Shop — Auto 3,432 SF, per county Year Built: 1948, per county Quality / Condition: Average / Average Type of Construction Structure: Concrete block, concrete slab Roof: Flat rubber roof, approximately 15 years old per owner Exterior: Concrete block Doors / Windows: Metal & glass / Casement, glass block, ages unknown Basement / Mezzanine: None / Small storage mezzanine not included in GBA due to no finish, and very low clear height Stairs / Elevator: None / None Mechanical / Plumbing / Insulation HVAC / Insulation: GFA/AC, office, approximately 10 years old per owner; overhead heaters shop Electrical / Plumbing: Adequate, 3 phase 220 amp / Adequate Hot-water heater / Sprinkler: Adequate / None in Description of Improvements — Continued Interior Finish Office 15% Shop 85% Size: 515 SF approximate 2,917 SF approximate Ceiling: Composite board Composite board Lighting Fluorescent Fluorescent Walls / Floors: Drywall / Concrete Concrete Restrooms: 1, concrete floor; Layout: Typical single user office/shop (auto) related property Site Improvements Parking / Other: Limited to nil onsite parking; public parking located adjacent to subject, however, cannot park over night / Flagpole access to street Depreciation Effective age: 25 years Est. Remaining Econ Life: 25 years Deferred Maintenance: None apparent or reported Functional: Functional design for current use and/or office/shop related user; limited to nil parking onsite External: Yes; cost & value not presently equal Physical: Slight, cost and value not presently equal Subject property supports a single user layout and has limited to nil available parking onsite. Limited parking somewhat offset due to public parking lot located adjacent to the subject property, however, cars that are being worked on may not be parked in parking lot overnight. Recent Updates: Typical maintenance and updating throughout assumed; Strengths: Appealing neighborhood situated along the Interstate corridor; broad appeal for office/shop users Weaknesses: Limited to nil onsite parking; WE BUILDING SKETCH 44 II li CO BAS1948 ao 3432 44 Per county. 20 SUBJECT PHOTOGRAPHS r I � Looking west on River Street West Driveway access 4 ;• - 1 b, Y 1 n s� Front / Side view Rear / Side view 21 I �•`1e � rA F'�+moi ( Z 'F r�i• f •Xe / * t \ fl � a Xo' t r4i bo w rkkNb, rim I 4A HIGHEST AND BEST USE As Vacant: The highest and best use is considered for assembly with adjacent properties for development. As Improved: There appear to be two options for the subject: 1. Raze the Improvements: This option is not logical, as the existing improvements are substantial and have remaining economic life. 2. Current use: The current use as a single user auto shop property is logical and appears to have functioned as such for some time. Continued ongoing use is logical. Based on the above discussion, option two appears to be the most logical. Therefore, the highest and best use of the subject property is the auto shop related use with updating as necessary as zoning allows and market demand warrants. COST APPROACH The Cost Approach will not be utilized due to subjective depreciation adjustments. As such, the Cost Approach is considered to be the least reliable approach and is therefore not applied. INCOME APPROACH The Income was considered however was not applied due to the owner occupancy, and scope of the assignment. 24 112West River Street February 14, 21 Performance Agriculture - Based Overlay Open Space District Residential T Special Use Amentities District District iiAoMN Wild and AM-Woo. Single Family Scenic River Residential Districts Traditional Freeway Bonus Neighborhood District Residence Area 1 inch = 94 feet Single Family High Density Highway Light Industrial and 2 Family Residential Business Residential Manufactured Regional Heavy Industrial Residential --- Home Park Buftt%%ttman Planned Unit Planned Unit District Central Development Development Neighborhood Community ROW Medium Density Business District Split Residential Limited Industrial and Business Business Campus DistrichapPoweredbyDataLink from WSB & Associates Downtown Small Area Study Implementation Workshop November 16, 2017 P --------------------------------------------------------------------------------------------------- articipants City Council: Brian Stumpf, Bill Fair, Jim Davidson, Charlotte Gabler, Lloyd Hilgart EDA: Tracy Hinz, Steve Johnson, Jon Morphew, Bill Tapper Parks & Recreation: Nancy McCaffrey, Larry Nolan Planning Commission: Katie Peterson Guests: Clay Sawatzke, Michele Hertwig Staff: Jeff O'Neill, Angela Schumann, Jim Thares, Jacob Thunander, Tom Pawelk, Rachel Leonard, Jennifer Schreiber Workshop Purpose Set a foundation for realizing the downtown plan by encouraging the various commissions to cooperatively review the elements of the plan, prioritize the components, and strategize implementation. Prioritization Exercise Organized by Highest Ranked Projects: Redevelopment: Pursue signature redevelopment on Block 52 with market rate housing and a destination restaurant that overlooks the park. Public Realm Improvements: Redesign riverfront parks to include more active events and programming in West Bridge Park (amphitheater, water feature, concessions) and passive uses in East Bridge Park. Broadway Street Commercial Vitality: Broadway Street Environment: Develop small pocket parks on vacant properties along Broadway, offering outdoor seating, and pedestrian connections to parking. Curb extensions at Walnut and Broadway to provide space for landscaping, seating, and gathering. Identity Building: Build Downtown's brand and identity by identifying the downtown core as the Broadway Walnut area, and naming it. Pursue marketing initiatives to build the new brand. Business Support & Development Establish fagade improvement programs that offer financial support for improving building appearance and district identity. Organized by Survey Category High -Impact: 1. Pursue signature redevelopment on Block 52 2. Redesign riverfront parks... 3. Establish fagade improvement programs... Low -Hanging Fruit: 1. Improve bridge underpass... 2. Develop small pocket parks... 3. Curb extensions at Walnut & Broadway Personal Interest! 1. Redesign riverfront parks... 2 Pursue Signature redevelopment on Block 52... 3. Reconnected Walnut Street to River Street... "k1, `°��' i• �.,✓/�._ fir �' » ; y, .......................................................... Project Implementation Exercise East & West Bridge Park Improvements Foundation: Location on the river, high visibility, varied topography, existing assets, capable parks staff, dedi- cated volunteers, popular community events. Challenges: Limited automobile & pedestrian access, perception of noise and actual noise, potential river island flooding, limitations of adjacent land uses, ma- ture trees can block views, hard to change what's al- ready popular. Mitigation: Acquire surrounding land to allow redevelop- ment and growth, connect Walnut Street to River Street, use signage and rebranding to encourage ex- ploring downtown and connecting with the parks, en- hance underutilized assets like the southeast stairs and bridge underpass. Leadership: Parks staff, Park & Recreation Commission, City Council, and EDA with redevelopment. Key Decisions: Park design, connection of Walnut St. to River St, reconstruction of River St, redevelopment of Block 52. Priority Tasks: Park design, remove understory plants for visibility to the river, programming & events, connect Walnut St. to River St. Block 52 Redevelopment Foundation: City owns a portion, another property for sale, high visibility, beautiful view, parks complement, EDA is engaged in acquisition. Challenges: Cost of acquiring property, getting the right developer, potential contamination, community confu- sion of public purpose, competition with completing Block 34, relocation costs. Mitigation: Continue acquiring land and empower eco- nomic development manager to meet with developers. Leadership: EDA for site control and incentives, staff for recruitment and negotiating, additional city staff from planning, public works, Wright County, etc. Key Decisions. Preliminary development agreement, zoning ordinance changes, incentives. Priority Tasks: Design for Walnut Street connection to River St., redesign West Bridge Park parking, acquire properties, reach out to developers to find the right partner, continue building relationships and communi- cating with property owners. Downtown Housing Development Foundation: Strong market, regional and local amenities, demographics, walkability, accessibility, site control, lender and council support, developers interested, jobs nearby. Challenges: Relocation development costs, water table, cost of quality construction, noise, traffic access, size of block divisions, developers have many options, zoning not currently aligned with plan, existing property & business owners. Mitigation: Gather better information on water table, shared equity solutions, create one TIF district, buying options. Leadership: EDA to lead land acquisition, TIF program, coordination with lenders & developers. Planning Com- mission to lead zoning review. City Council responsible for final approvals. Key Decisions: Determining one site or many, zoning approved that balances flexibility with predictability. Priority Tasks: Create package or feasibility for several sites so the city knows its limits and capacity, include aesthetic design expectations, get a more detailed un- derstanding of the downtown market, engage in out- reach to developers with marketing materials. Activating Broadway Street's Commercial Vitality Foundation: Proximity to parks and river, some business- es already making positive changes, changes will en- courage people to visit, opportunity to build relation- ships, high traffic area. Challenges: Not all buildings up to code, cost of rehabili- tation, lack of space for outdoor seating, lack of con- centration, need to agree on fagade style, traffic, busi- ness mix. Mitigation: Assess the state of properties, survey and encourage stakeholder participation, offer financial in- centives, help 1-2 businesses start to encourage others. Survey property owners to guide the focus. Leadership: Existing business group, Chamber, City Council, EDA, and city staff. Priority Tasks: Determine ownership of every parcel with contact information, reach out to property and busi- ness owners for their ideas, identify and build alliances, determine design standards. Other: Encourage EDA to build relationships. F r, � �-, 4-, C -), f �? r - O-t- ro r 1 e > 1 1 IN EDA: 03/14/18 6. Consideration of Downtown Building Improvement Assistance Program (JaT) A. REFERENCE AND BACKGROUND: In January 2018, the EDA was presented with the idea of developing a downtown business improvement loan program. At that time, the EDA suggested staff talk with business and property owners to gauge their interest in developing a loan or grant program that could be utilized for areas such as fagade improvements, renovations/rehabilitations and energy efficiency. Further, as noted in a previous staff reports, the adopted Monticello Downtown Small Area study cites as an implementation strategy the "establishment of a facade improvement program that offers financial support for investments that improve the visual appearance of buildings and district identity." In the joint Downtown Small Area Study Implementation workshop held by City policy boards in November, the group cited the implementation of such a program as one of the highest ranked priorities for accomplishment. Meetings with property and business owners were held on February 12th and 26th at the Cornerstone Cafe. There were around 15 people present at the first meeting and 25 people present at the second meeting. A summary of their comments are included in the staff report. B. ALTERNATIVE ACTIONS: No motion is requested at this time. The EDA shall provide direction on the Downtown Business Improvement Loan program for further consideration at a future meeting. C. STAFF RECOMMENDATION: D. SUPPORTING DATA: a. Meeting Summary Notes b. Letter to Property and Business Owners c. Meeting Questionnaire DOWNTOWN BUSINESS IMPROVEMENT LOAN PROGRAM DISCUSSION 12 Total Completed Forms: Fagade Improvements: 10 Renovation/Rehabilitation: 6 Energy Efficiency: 7 Other programs or incentives that would be utilized: • Forgivable loans on signage • Handicap accessibility • Alley maintenance • Landscaping improvements • Combined garbage/dumpsters facelift Other suggestions or comments for the downtown: • Improved walkways and more green space • Upgraded signage on street frontage • Restructured rear parking • Micro -park in the empty lot • Improvements to the rear/back entrances of buildings • Will talk to building management company about improvements • Re-route traffic on Trick -or -Treat night • Add flower pots/benches on Broadway and alley way • Do a scavenger hunt to get people in businesses • More parking and cross easement • Door spaces improvements • Improved lighting in parking lots February 2, 2018 Dear Property Owner and/or Business Owner: PHONE: 763-295-2711 FAx:763-295-4404 505 Walnut Street 1 Suite 11 Monticello, MN 55362 RE: Business Croup Meeting — Downtown Business loan Grant Program Greetings to you! The Monticello Downtown Small Area Plan was recently adopted by the Monticello City Council and the Economic Development Authority (EDA). The Small Area Plan advocates for solidifying Downtown as the heart of Monticello. The adoption of the plan for downtown was not the end of the process. Rather, it is the beginning of efforts to revitalize the downtown core area as a lively, visitor -friendly, and memorable place to live, shop, dine, and celebrate arts and culture. The next step in turning the plan into reality is implementation. That process envisions participation by businesses, property owners, and public entities in making private property and public space improvements. This process is expected to play out over a number of years, but it is important to get started now! With that in mind, we're hosting two informational meetings to share information and engage in discussions with business and property owners: o Monday, February 12,2018: 11:30 a.m. -1:00 p.m. at Cornerstone Cafe • Monday, February 26,2018: 21:30 a.m. -1:00 p.m. at Cornerstone Cafe The meetings will focus on the possible development of downtown business loan -grant programs, and a courtesy lunch will be provided. Feel free to attend either of the meetings or both of them if you wish. We'd love to hear your thoughts and ideas for shaping a downtown loan program. Please confirm your attendance at this meeting with Jacob Thunander at 763-2713206 or via email: Jacob.thunander@ci.monticello.mn.us. The meeting agenda is attached. If you have any questions, please feel free to contact Community Development Department staff: Angela: 763-271-3274 orangela-schumann@ci.monti ello.mn.us Jim: 763-271-3254 or jim.thares@ci.monticello.mn.us Jacob: 763-271-3206 orJacob.thunander@ci.monticello.mn.us If you want to read more about the Small Area Plan, please visit: www.ci.monticello.mn.us/downtown. Sincerely Jim hares omic Development Manager Enc. Meeting Agenda Ang la c u ann Commu ' velopment Director �cobThunanXder Community Development Tech www.ci.monticel lo.m mus MEETNG AGENDA Downtown CgusMess �rrnprovem ent Loan/Grant Program MaeVng February 12, 2018 11.30 soma. to I. -Do p.m. C®rrrrnOFEWne Cafe — lunch WIH he served Io Meeting Overview and Introductions QMm� — 22.30 20 Downtown Sm aH Area Study Nan Overview QJim or Angee aj — 21.45 3. Downtown Business Improvement Loan Program Discussion — 12:55 ago Overview QJornj bo Break -Outs with individual property owners (3acob, Ami, Ange0a� 4. Questions & Negt Steps — 22:4s So Othe • (Everyone) CITY OF to Monticello Name: Business: Address: Email: Phone: Programs of Interest: ❑ Fagade Improvement ❑ Renovation/Rehabilitation ❑ Energy Efficiency Estimated Amount Needed: Estimated Amount Needed: Estimated Amount Needed: Please explain any other programs or incentives that you would utilize if available? Please provide any other comments or suggestions for the downtown. To view the Monticello downtown Small Area Study, please visit: http://monticellomn.govoffice2.com/downtown EDA Agenda: 3/14/18 7. Consideration to approve a proposal for Design Guidelines for Downtown Facade Improvement Program. (AS/JT) A. REFERENCE AND BACKGROUND: The EDA is asked to consider a proposal prepared by the Cuningham Group for preparation of a design guidelines document supporting the future downtown facade improvement program. It is understood that the proposed facade and building improvement programs are just beginning to take shape. However, given the positive feedback during the property owner/business owner luncheons on the potential program, staff wanted to provide the EDA with the initial proposal to determine if we are on the right track in terms of desired end product. At its January meeting, the EDA indicated an interest in the preparation of a design guideline document that would serve as the basis for evaluating an applicant's facade improvement loan or grant in terms of proposed exterior design elements. The direction from the EDA was that it should be useable for the EDA to determine the value and consistency of the proposed improvements to the Small Area Plan, but not so prescriptive that property owners did not have some flexibility in their design options. The design guideline would be a supplement to the loan or grant program application guidelines. Staff conveyed this to Cuningham representatives, who also watched the EDA meeting to help prepare their proposal. The result is a proposal which would provide a streamlined guide detailing the types of improvements covered under a fagade improvement program (from small to large scale), as well as an architectural reference sample, using a specific block frontage of the downtown as an example of architectural style and elements. Timing and development of the design guideline would align with the development and approval of the facade program guidelines so that the types and scope of improvements are consistent between the components. The proposed project cost is $4,000 to complete the guidelines. An example prepared by the Cuningham Group for West Broadway, Minneapolis is included for reference as a product example. The EDA will note that the design guideline would be one component of the loan/grant evaluation. The application materials themselves would provide additional guidance on other evaluation criteria, such as financial commitment, timeline, etc., in order to provide the EDA with information for decision-making in offering financial assistance. B. ALTERNATIVE ACTIONS: 1. Motion to approve the proposal by Cuningham Group for Design Guidelines for Downtown Facade Improvement Program. 2. Motion to table action on the item to a future meeting. C. STAFF RECOMMENDATION: If the EDA intends to proceed forward on a facade improvement program based on the summary in the previous item, staff believes that it is appropriate to move forward with a EDA Agenda: 3/14/18 design guidelines document. As noted, a guideline document will provide property owners with a visual reference to the types of improvements which would be allowed under the program, as well as general performance standards for materials, colors, and other construction aesthetics. D. SUPPORTING DATA: A. Cuningham Proposal B. West Broadway Example February 6, 2018 CUNINGHAM G R O U P Angela Schumann City of Monticello Department of Community development Celebrating 50 Years 505 Walnut Street Monticello, MN 55362 Subject: PROPOSAL AND AGREEMENT FOR PROVIDING PROFESSIONAL SERVICES Fagade Improvements Dear Angela: Cuningham Group Cuningham Group Architecture, Inc. (Architect) presents to the City of Monticello (Client) Architecture, Inc. this Proposal and Agreement for professional services to assist you in the Walnut Street St. Anthony Main Corridor Project (Project). 201 Main street SE Suite 325 PROJECT UNDERSTANDING Minneapolis, MN 55414 Architect understands that the City of Monticello wants to consider a fagade improvement program for the four block of Broadway, between TH25 and Locust Street. The fagade Tel: 612 379 3400 program would be one incentive program offered to business owners and property owners — Fax: 612 379 4400 the others being a micro loan program and a more extensive redevelopment program. The fagade improvement program is intended to be a modest program that encourages building/property owners to make cosmetic improvements to their front facades. APPROACH/SCOPE OF SERVICES Based on our conversations with you to date, Architect anticipates providing to you the following scope of services: General schematic drawings and diagrams of typical storefront in Monticello, with annotated and illustrated potential improvements that can be accomplished within the City's proposed fagade improvement program. PROJECT TEAM Andrew Dresdner, AICP Jena Stanton FEES Compensation for Basic Services as described herein shall be a stipulated sum of Phase 1: $4000 SCHEDULE Meeting # 1: Late February: Kick off Meeting with Staff . On Site photography. Meeting # 2: Late March: Presentation of rendered and annotated elevation drawings Page 1 of 4 www.cuningham.com REIMBURSABLE EXPENSES CUNINGHAM G R O U P Celebrating 50 Years Reimbursable Expenses are in addition to the above fees. They include all normal expenses incurred by Architect for the benefit of the Project, including out-of-town travel (if any and if authorized), mileage, long-distance telephone calls, messenger service, printing, etc. These expenses will be billed at 1.15 times their direct cost to Architect. ADDITIONAL SERVICES Services you may request such as physical models, 3-D computer modeling, additional drawings or any renderings, engineering or special consultants, or other special services not specifically included in the above scope of services shall be invoiced at Architect's current hourly rates or at 1.15 times the direct cost of consultant's charges to Architect. In addition, any changes in the scope will also be billed at an hourly rate. Architect's hourly rates will be per Cuningham Group Hourly Rates, attached as Exhibit A. Additional Services will be performed only upon your written authorization. INVOICING Billings will be issued at 30 -day intervals. Payment is due and payable upon invoice receipt. Interest of 1.0% per month will be due on the unpaid balance beginning 30 days after invoice date. Client agrees to reimburse Architect for all costs of collection including attorney fees, costs, and expenses. USE OF SUPPLIED INFORMATION Client agrees to provide and/or obtain all required licenses, including copyright license, to allow Architect to reproduce, use and incorporate all Client -supplied Project -related drawing or other information and agrees to indemnify, defend, and hold Architect and its consultants harmless from or against any and all claims arising out of or relating to Architect's or its consultants' Project -related reproduction, use, or incorporation of such information. Client will provide Architect with base map information that accurately indicates existing conditions. OTHER TERMS AND CONDITIONS Except as otherwise modified herein, the terms and conditions of an unmodified AIA Document B101, Standard Form of Agreement Between Owner and Architect, 2007 edition [13727 "Special Services" or B101 "Standard Form" may also be used in appropriate circumstances] (attached as Exhibit B), where Client acts as Owner for purposes of the Agreement, shall apply to all services provided under this Proposal and Agreement. The Client and Architect agree that arbitration, as described in the attached AIA Document, shall be the selected method of adjudicated dispute resolution. Client shall furnish the services of a contractor or cost consultant that shall be responsible for preparing all estimates of the Cost of the Work. If Client does not have such a consultant, Architect can provide a list of qualified contractors or cost consultants for Client's use. If the Client's budget at 50% completion of Design Development Phase Services or later is exceeded Page 2 of 4 CUNINGHAM G R O U P by Client's cost estimate or the lowest bona fide bid or negotiated proposal, and modifications ''�� to the Design Development or Construction Documents are required to reduce the actual or Celebrating 50 Years estimated Cost of the Work to comply with Client's budget, Architect will provide such modifications as an Additional Service, except to the extent Architect failed to incorporate Client's or Client's cost estimator's previously issued specific cost control directives. Client agrees to provide to Architect utility bills or other utility usage data on an annual basis for the [two to five, as appropriate] years following Substantial Completion. This information would be used to understand the metered performance of the building compared against industry benchmarks and for internal assessment of the design. The summary of associated analysis will be shared with Client upon request. Architect expressly disclaims all express or implied warranties and guarantees with respect to energy performance, and Client agrees to release, hold harmless, and indemnify Architect from any liability or claims related to the energy performance of the building. Architect and its consultants will be using building information modeling for the sole purpose of preparing and coordinating their Drawings, without an expectation that the model will be relied upon by other Project participants. If Client, Client's contractor or consultants, or other parties as appropriate desire to use the model for any purpose, the Architect, Client, and other appropriate parties will establish and agree to building information modeling protocols, which shall address authorship and ownership, level of development, and authorized uses of the model, processes for exchanging, sharing, and resolving changes to the model, and anticipated authorized uses for facilities management or others, following completion of the Project. Preparation of the protocols and operations and services provided thereunder shall be Additional Services. This Proposal and Agreement shall be subject to and enforced under the laws of the State of Minnesota. With your signature below you are indicating your acceptance of the understandings, terms and conditions of this Proposal and Agreement. This Proposal and Agreement may be terminated by either party upon seven days' written notice should either party fail to perform substantially in accordance with its terms. Failure of Client to make payments to Architect within 45 days of invoice date shall be considered substantial non-performance and cause for suspension or termination of Architect's services. If you instruct us to begin, or allow us to continue, performing or providing Project services prior to returning a signed copy of this Proposal and Agreement it will be understood that all of its terms, and the attached or referenced exhibits, are acceptable and all parties will be bound by the terms of this Proposal and Agreement. If this Proposal and Agreement meets with your approval, please sign two copies and return one copy for our records and we will begin the services. Thank you again for this opportunity to be of assistance. We look forward to helping you achieve your goals for Walnut Street and Downtown Monticello. Sincerely, Approved By: CUNINGHAM GROUP ARCHITECTURE, INC. [Replace With CLIENT COMPANY NAME] Page 3 of 4 ,� CT CUNINGHAM G R O U P J [Replace With Signer's Name] [Replace With Client Name] Celebrating 50 Years [Replace With Signer's Title, include lic. # in CA] [Replace With Client Title] Date: Date: [Replace With Upper Case Preparer's Initials]/[Replace With Reviewer's Upper Case initials] :[Replace With Typist's Lower Case initials] Exhibit A — Cun m Group Hourly Rates Exhibit B — AIA Doc101, Standard Form of Agreement Between Owner and Architect, List all attached exhibits Attach Cuningham Group Hourly Rates on FishNet marked as "Exhibit'A"' For Exhibit "B" if B102, "Without Predefined Scope of Services" or 13151, "Abbreviated Standard Form" are used as an alternate to B101, update the text for Exhibit "B" NOTE: Exhibits are to be identified by letters that are sequential in order of their reference in the text, e.g. "A" followed by "B" followed by "C," etc. [double-click to remove this tip] Page 4 of 4 Facade Improvement Possibilities These examples show ways to create active, stimulating, engaging, and playful sidewalk environments using lights, sculpture, signs, awnings, landscaping, and paint. West Broadway Today .'•(77 ` GEM t/1 z Additional Information: LU Tom Leighton, Principal Planner W City of Minneapolis, North Sector 0 Public Service Center 250 S 4th St, Rm 110 Minneapolis, MN 55415 612-673-3853 LU thomas.leighton@ci.minneapolis.mn.us a U Q L- Sarita Turner West Broadway Coalition 911 W Broadway Ave, Ste #1 Minneapolis, MN 55411 612-353-5178 info@westbroadway.org Brochure by: CUNINGHAM G R 0 U P West Broadway Facade Improvements Unify the corridor Make it distinctive Express community values Engage the community in the creative process West Broadway Coalition City of Minneapolis West Broadway Design Threads Integrating the following design threads into facade renovations will help to build a lively and distinctive West Broadway environment. ■ Color and Pattern The West Broadway environment should be marked by bright and multiple colors and patterns. Diversity in color is symbolic of the community's diversity, and lends itself to participation in the creative process. ■ Three Dimensionality/Movement Functional and artistic elements that have depth, or evoke a sense of movement, have impact. Elements that project horizontally from buildings, or vertically from the sidewalk, are encouraged. ■ Language Language can serve as a connecting thread along West Broadway. Capturing language in the built environment provides a way to express community values. Also encouraged are the preservation of historical exterior materials and character, such as brick work and cornice details, and the use of artists to create facade elements that add one -of -a -kind touches to the West Broadway environment. 1001 West Broadway Improvements for the 1001 Building begin with fundamental restoration and preservation efforts. Additional enhancements to express spirit of West Broadway Alive! include: • Restored brick work. • New cornice treatment. • Window replacement. • Historical mural restoration. • Shopfront reconstruction. • Colorful awnings. • Accent lighting. • Neon corner hanging sign. n X• Suggested Facade Improvements: 1000 Block of West Broadway EDA: 3/14/18 8. Presentation by Briggs Properties: proposing a 48 -unit market rate multi -family development with an affordable component (JT, AS) A. REFERENCE AND BACKGROUND: Pat Briggs, Briggs Properties, Inc. will be at the EDA meeting to a review a concept proposal for a 48 -unit apartment building in the downtown area under the Affordable Housing TIF policies and State statute. The proposed development would require the creation of a new housing TIF district. The site is the Master's Fifth Avenue parcel which is currently certified as a Redevelopment TIF District (TIF District #1-35) and is under contractual agreement between the EDA and Master's Fifth Avenue whereby $170,000 in TIF funding has been committed to facilitate construction of an "11,000 square foot retail, business, housing, or mixed use development project." Development at this site has been delayed for several years due to the great recession and the changing dynamics of the retail and service business environment. The EDA and developer have both been patient in awaiting the recovery of the development market and for a realistic concept to materialize. The EDA has also taken accommodative steps to amend the Redevelopment Contract by adding "multi -family housing or mixed use" as potential options for the site. The two most recent contract amendments, respectively #4 and #5, approved by the EDA, extended the timeline for starting and completing development at the site. Amendment #5 requires development to be started by December 31, 2018 and be completed by December 31, 2019. Mr. Briggs is an experienced developer with a number of multi -family properties developed and under management in the region. Briggs also has a minor amount of office and industrial warehouse property that they have either acquired or developed over the past 10 years. They indicate that they see Monticello's new downtown plan as an exciting and positive vision for the core area of the City and have a desire to provide quality, downtown rental housing as a living option for local residents. Mr. Briggs will review the development proposal, the financing structure and desired timeline with the EDA. There are a couple of issues that factor into the discussion of the proposal. The first is that there is currently a valid Contract for Private Redevelopment in effect as part of the Redevelopment TIF District. The developer, Masters Fifth Avenue, controls the site and must accede to any proposed changes to the contract, including its termination and eventual decertification of the existing TIF District. The second is a thorough review of alternatives and comparisons of potential assistance for the Briggs proposal; either under the existing Redevelopment TIF District - with appropriate amendments maximizing increment flow or through a new assistance package using an Affordable Housing TIF District. Al. STAFF IMPACT: There is a limited staff impact in considering the TIF application from Briggs Properties. The review and organization of the application materials that occurs during the creation of the staff report is part of in-house staff duties. The application fee paid by Briggs Properties will cover the involvement of consulting staff from Northland Securities and Kennedy & Graven. EDA: 3/14/18 A2. BUDGET IMPACT: The TIF application fee covers the cost of staff involvement in reviewing and preparing the materials needed for the EDA meeting. The budget impact of the project itself is self -supportive in the sense that the project proposes to pay all standard fees such as SAC, WAC, Trunk Fees, Park Dedication, etc. TIF funding does not affect existing budgets. Instead, it uses future tax revenue from "new development" valuation. If a project never occurs, the community does not gain any new real property tax nor increment flow. The proposal's pro forma shows a shortfall in debt coverage ratio from a typical bankable figure of 1.15 to 1.20 to .93 without TIF. That scenario indicates a need for assistance in a project that is estimated to cost $7,500,000 +/- or nearly $159,000 per unit. The EDA's role in the concept review is to determine if it is interested in offering support to a development with a pro forma indicating it will not move forward but for the TIF assistance. The EDA has TIF Guidelines to that govern the review process and the attached application and concept review is the first step in that process. B. ALTERNATIVE ACTIONS: 1. Call for special meeting to review financials and process for proposed TIF project. 2. Motion of other. C. STAFF RECOMMENDATION: Staff believes that a future workshop reviewing side by side funding comparisons is warranted for this proposal and will discuss potential dates and times with the EDA at the meeting. Staff would further recommend as a next step that the EDA direct staff and supporting consultants to prepare information about the process for creating a housing TIF district and the potential assistance from that tool as well as evaluation of TIF assistance for comparison purposes from the existing Redevelopment district, pooling and the parking assistance options. D. SUPPORTING DATA: a. TIF Application Packet and general information regarding the proposed housing development Briggs Properties. lit e' U� 1 •11 .1 1 � �y �� a r 40 Narrative To construct a New 48 unit, 4 story Apartment Building consisting of 29-- 1 Bedroom Suites and 19-- 2 Bedroom Suites. 48 Total Units. 1" floor exterior fagade would include 5" EDCO Steel siding & Cultured Stone on the North, East and West elevation. 2°d 411 floor Steel siding. Copper Steel Shingle Shakes on each roof dormer with black screened in porches on each balcony to include white railings and maintenance free decking. 34 Underground parking stalls and 38 Uncovered parking stalls which is a total of 72 stalls/48= 1.5 stalls per unit. Along 3rd and Locust Street there will be a combination of pavers & stamped stained Burgundy concrete. Tree Plantings to be imbedded in the sidewalk landscaping design as a team with city staff during Development Phase. Proposed objectives are to Design, Construct and own a multifamily apartment building in a downtown housing district to revitalize the area with a focus on setting a standard for quality design and a commitment to conserve tenant energy consumption. Conceptual development schedule: 2/21/18-8/1/18 Development Stage 9/1/18 Construction Start 4/1/18 Certificate of Occupancy 6/1/18 Completion of all Impervious services Thank you for giving us this opportunity to work with and be a part of The City of Monticello Housing Efforts. Patrick Briggs 612-919-1561-pat@tl-icbriggscompanies.com Monticello 31 Street Corner Amenities 1. Washer/Dryer hook-ups in every unit 2. Fitness Room 3. Community Room with kitchen, tables, fiuniture & Wi-Fi 4. Theater Room 5. Resource Center 6. Arts & Crafts Room 7. Elevator 8. 9 foot ceilings with vaulted ceilings on 4t11 floor 9. Stainless Steel Appliances 10. Designer Lighting 11. Magic Pack furnaces and air conditioning in each suite with Wi-Fi Thermostats 12. Sub metered water in each suite 13.2 panel doors with Brush Nickle hardware levers with Key Fob access to all doors 14. Controlled Entry 15. Surveillance throughout entire community 16. Onsite Management 17. Dry Cleaning Drop Off/Pick Up 18. Package Receiving 19. Outside Patio 20. Outdoor Seating 21. Heated Underground Parking 22. High Speed hiternet 23. Balconies 24. Car Wash 25. Pet Wash Station 26. Screened hi Porches on all balconies wrapped with aluminum railings Listing Contact Information Engineer: Stark Engineering, Wayne Stark 320-249-2611- waynes starkengineer.com Surveyor: Duffy Engineering, Barry Dorniden 320-258-2906- bariyd�duff�eng corn Applicant: The Briggs Companies, Patrick Briggs 612-919-1561- pat L&thebriggscompanies.com SURVEYORS NOTE: UNDERLYING EASEMENTS MAY EXIST AND ARE NOT SHOWN ON THIS DRAWING. RIM=928.61 / RU1= 927.28 RJV-=92i 9R > RIM= 928.18 M. = 924.20 RUM = 928.13 INV. = 919.35 RIM - 927.79 INV. = 9z4.4a.a = 928.50 =921.1. 0 2 � o sSSZr. / X875 91j RIM 80 / \/ / \ RIM =9278 / / \ INV. =9 8 B k / CERTIFICATE OF SURVEY PREPARED FOR NELSON BUILDING & DEVELOPMENT Tract of land lying and being in the County of Wright, State of Minnesota, Described as follows, to -wit: Lots 1, 2, 3, 9, 10, 11,12,13,14, and 15 and the West 16.00 feet of Lot 8, all in Block Thirty-six in the TOWNSITE OF MONTICELLO as of public record, Wright County, Minnesota. Subject to easements of record. Containing 1.71 acres, more or less. RUM=9242 ' RR�y9 9 r eT^e , 111 927 wV.=924.292 ❑ D q - G ❑ ❑ q w 11D b q l7q C1n 419 f 0.47/ / BUILDING --- ,'9 i r r / �'"-.,�•f� • 'p ., r, �.A•�'/''is / / / _ FIBER OPTIC 3 is 1,76I0 r .%� . 4 _ r \ 931z ' BUILDING - =931.22l�y� !� ` V .. O Q ry1 w = 923.4 RIM =931.29 1W=922. UM=931.28 INV. =920.37 '! '.e pp r'..0.\\ 1b �•N� Q / / _�._.__ ._.___ -. ._._-_._ RU=93114 79 INV. =93 RIM=931.19 INV. 927.32 \` "` § ,:. _• •.1 / WVV I I T s / � � /BUILDING S /B..T I ;-_ � �•,RIM 929ss / CERTIFICATE OF SURVEY wF �� v=9258 O'MALLEY &BOE LAND SURVEYORS, INC. 328 SW THIRD STREET 210 MAIN STREET O \ OP \ \ / WILLMAR, MN 56201 COLD SPRING, MN 56320 S PH. 320-235-4012 PH. 320-685-5905 a \ / ij STOfz'�'/t�TME (�T, FAX 320-2214-9380 FAX 320-685-3056 930.00 INV. INV.=917. \ _ M UN ITJ 161 I HEREBY CERTIFY THAT THIS SURVEY, PLAN OR REPORT WAS PREPARED BY ME OR \ / UNDER MY DIRECT SUPERVISION AND THAT I AM A DULY REGISTERED LAND SURVEYOR SITE PLAN UNDER THE LAWS OF THE STATE OF MINNESOTA. 111 30 1 RIM =928.82 REG. NO. 42300 DATE: 8-15-05 INV. =924.15 BENJAMIN C. O'MALLEY GUi=yr PP.izK1�6 3 8 NOTE: THIS SURVEY IS INTENDED ONLY FOR THE BENEFIT z . T0_rte- -7 IL, OF THE PARTY TO WHOM IT WAS PREPARED FOR AND SHOULD NOT BE RELIED UPON BY ANY OTHER \ PARTY OR FOR ANY OTHER PURPOSE WITHOUT FIRST CONTACITNG THE SURVEYOR WHO DEVELOPED AND RIM=929.00MADE THIS DRAWING. RIM _ 929 75 NV. =925.22 RIM=929.73 IW=92137 INV. = 915.66 1 Ik Y EDA Agenda: 03/14/18 9. Economic Development Report (JT) A. USDA Rural Finance Program Eligibility Status See attachment re USDA Rural Development Loan Programs B. General Fund Budget Update (see attachment) C. Small Area Study Zoning Ordinance Changes Update The Committee examining ordinance changes to conform to the recommendations stemming from the Small Area Study Plan is holding another meeting to review proposed ordinance language suggestions. The meeting is scheduled for 7:00 a.m. on March 21, 2018. D. Central Minnesota Housing Partnership rehab and redevelopment feasibility review Follow up meeting with CMHP staff is being planned for late March to conduct initial assessment of properties that might be a good fit for a rehabilitation program in the core area of the City as well as potential rehabilitation or redevelopment properties in the downtown core area. E. Phase 1 Environmental Assessments Authorized by the EDA The Phase 1 Environmental Assessments are being completed for 103 Pine Street and 112 West River Street. Six quotes were received. The best quote came in at $2,900 for the two properties. F. Regional Housing Forum Sponsored by the Initiative Foundation See the attachment regarding the Governor's Task Force on Housing listening and discussion session. The Initiative Foundation is taking the lead to convene a group discussion to identify and consider recommendations for securing Minnesota's housing future. It is a free forum where you can share ideas related to home ownership, rental housing and opportunities for housing suitability in Central Minnesota. Questions to be asked include: How can we do better in providing sufficient affordable rental options? How can we improve stability for individuals and families in transition? How can we help more people achieve home ownership? Time 6 to 9 p.m. Date: Thursday, April 5 Place: Initiative Foundation, Little Falls G. Housing Article from fedgazette, Federal Reserve Bank in Minneapolis, MN See the attached link and click on to read article in the Fedgazette, Minneapolis Federal Reserve Bank, addressing affordable housing in the upper Midwest. hgps://www.minneapolisfed. org//publications/fedgazette/the-vanishing-starter-home EDA Agenda: 03/14/18 H. Prospects —See attached A spread sheet with the active prospects will be provided to the EDA for review and discussion at the regular meeting. B. USDA Rural Development Loan Programs In December, 2017, the City of Monticello received a notice from the US Department of Agriculture that it was completing a review of eligible areas for its rural housing programs. The review requires that the USDA evaluate eligibility of a community to participate in its loan programs based on provisions of the 1999 Housing Act. The criteria relate directly to whether an area is rural or rural in character and outlines specific requirements to qualify as such. If a community no longer qualifies as rural or rural in character, the community is then no longer eligible for the USDA's homeownership loan programs. The two most common USDA home ownership loan programs are as follows: 1. Low interest, fixed-rate homeownership loans provided to qualified persons directly by USDA Rural Development. 2. Fixed -rates and term financing through a loan from a private financial institution and guaranteed by USDA Rural Development for qualified persons. City staff discussed the qualifications with a regional USDA representative and attended a conference call on February 6th, 2018 with the USDA and other communities under review. Unfortunately, staff's understanding after hearing other comments and responses on the calls is that Monticello is likely to be removed from USDA rural development loan eligibility. In summary, the USDA Rural Development Loan programs are intended for homeowners in rural areas. Monticello no longer fits that qualification based on the city limits and population density. The city would also need to demonstrate agricultural uses and infrastructure as a means to support continued eligibility. Local lenders participated in the call, and in discussing the call, their impression is similar to staff's. It was noted by the USDA representatives that while it is understood that there is a general need for such programs, and communities may be able to demonstrate need, the key to eligibility is whether an area is truly rural in character. Staff and local lenders did register comments during the call related to the need and support for these programs. However, it is unlikely that the programs will continue given the city no longer meets the required criteria to be considered rural. Staff will continue to provide updates to the EDA as the final inspection and notice is provided. Aa Schumann From: Jackson, Rodney - RD, Cambridge, MN <rodney Jackson@mn.usda.gov> Sent: Monday, December 4, 2017 2:06 PM To: Jackson, Rodney - RD, Cambridge, MN Subject: FW: UPDATED: NOTICE OF POSSIBLE CHANGES TO ELIGIBLE AREA MAPS FOR USDA RURAL DEVELOPMENT HOUSING PROGRAMS Attachments: RDUL-Periodic.pdf Dear Stakeholder — The attached public notice will indicate that USDA Rural Development is conducting a review of all areas under its jurisdiction to identify areas that no longer qualify as rural for housing programs. You represent and / or provide services to a community that is currently under review and may be considered as ineligible for USDA Rural Development housing programs beginning in June 2018. The guidance used in the review process is also attached and references both population size and a "rural in character" definition as considerations. USDA Rural Development is currently seeking public comment as to these possible changes. We ask that you forward any comments you have to the email of generaIRDMN@rd.usda.gov or that you reach out to me directly at the email address or phone number included in my signature block. I thank you in advance for your assistance. Rodney A. Jackson Area Director Rural Development United States Department of Agriculture 110 Buchanan St N I Cambridge, MN 55008 Phone: 763.689.3354 1 Fax: 855.804.4097 Email:.rodney.iackson@mn.usda.gov www.rd.usda.gov/mn I "Committed to the future of rural communities" USDA is an equal opportunity provider, employer, and lender. From: USDA Rural Development[mailto:ruraldevelopment@public.govdelivery.com] Sent: Friday, December 01, 2017 11:49 AM To: Jackson, Rodney - RD, Cambridge, MN <rodney.jackson@mn.usda.gov> Subject: UPDATED: NOTICE OF POSSIBLE CHANGES TO ELIGIBLE AREA MAPS FOR USDA RURAL DEVELOPMENT HOUSING PROGRAMS ,,- PLEASE NOTE A SLIGHT CHANGE IN EMAIL ADDRESS PROVIDED FOR COMMENTS NOTICE OF POSSIBLE CHANGES TO ELIGIBLE AREA MAPS FOR USDA RURAL DEVELOPMENT HOUSING PROGRAMS USDA Rural Development is conducting a review of all areas under its jurisdiction to identify areas that no longer qualify as rural for housing programs. The last rural area reviews were performed in 2012-2013 using the 2010 census data. This review, which is done every five years, will utilize the 2015 American Community Survey (ACS) data. Based on the 2015 ACS data and rural area guidance located in Handbook 14113-1-3550, Chapter 5, the rural eligibility designation is under review for the following areas (please reference the corresponding map when reviewing the list below): Minnesota The following cities may be considered ineligible for Rural Development housing programs beginning in June 2018: 1. Big Lake 2. Buffalo 3. Faribault 4. Monticello 5. Otsego 6. Owatonna 7. Waconia The following city may be considered eligible for Rural Development housing programs beginning in June 2018: 1. East Grand Forks The public shall have 90 days from the date of this notice to submit comments regarding possible changes in eligible areas for Rural Development housing programs. Comments are encouraged and should be sent to GeneralRDMN(@rd.usda.c1ov or Housing Program Director, USDA Rural Development, 375 Jackson St., Suite 401, St. Paul, MN 55101. For questions or more information, stakeholders in affected communities are advised to contact the Area Director at the local Rural Development office responsible for serving the community. X . Questions? Contact Us 2 EDA Fund Balance Date EDA General Fund Cash and Investments As of 12-31-2017 $ 2,016,687.00 255 East Broadway - Acquisition 224 East 4th Street - Acquisition 103 Pine Street - Acqusition 112 West River Street - Acquisition 2/15/2018 2/28/2018 3/15/2018 4/1/2018 ($107,118.77) ($72,256.97) ($517,736.30) ($371,235.00) ($1,068,347.04) Remaining Fund Balance post purchases 4/2/2018 $ 948,339.96