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City Council Agenda Packet 03-13-2000 . . . ~.. AGENDA REGULAR MEETING - MONTICELLO CITY COUNCIL Monday, March 13,2000 - 7 p.m. Mayor: Roger Belsaas Council Members: Roger Carlson, Clint Herbst, Brian Stumpf and Bruce Thielen 1. Call to Order 2. Approve minutes of February 28, 2000 regular council meeting. 3. Consideration of adding items to the agenda. 4. Citizen comments/petitions, request and complaints. 5. Consent agenda. A. Consideration of resolution authorizing the issuance of a charitable gmnbling license for Ducks Unlimited Bm1quet. B. Consideration of resolution authorizing issuance of a charitahle gambling license for Monticello Youth Hockey. C. This item removed from the agenda. Rescheduled for 3/27/00. (Klein Farms 6th) D. Consideration to approve the subordination agrcement associated with the contract for private development betwecn Twin City Die Castings, the HRA and the City of Monticello. E. Consideration to approve a estoppel certificate associated with the contract for private development hetween Twin City Die Castings, the HRA and the City of Monticello. F. Consideration of issuing a gamhling license to Monticello Lions Club to conduct gmnhling at Monticello Country Club. G. Consideration of adoption of amendments to CityiNationalGuard agreement governing development and operation of the Monticello Community Center. 6. Consideration of items removed from the consent agenda for discussion. 7. Consideration of authorization to prepare plans and specifications for the pedestrian overpass and pathway project (Project 98-02C) 8. Consideration of a requcst for a conditional use permit to allow open sales as an accessory use in the B-4, Regional Business District. Applicm1t: Skippers Pools and Spas. 9. Consideration of an amendment to the zoning map to rezone a parcel from I-lA, Light Industrial to R-3, Multiple Fmnily Residential. Applicant: Joseph & Mamie LaFromhoise. Agenda Monticello City Council March 13,2000 . Page Two 10. Consideration of payment of bills for March. 11. Adjourn. . , . . . ........ MINUTES REGULAR MEETING - MONTICELLO CITY COtJNCIL Monday, February 28, 2000 - 7 p.m. Members Present: Roger Belsaas, Roger Carlson, Clint Herbst, Brian Stumpf and Brucc 'I'hielen. Members Absent: None Mayor Belsaas called the meeting to order at 7 p.m. and declared a quorum present. 2. Approve minutes of regular council meeting of Februarv 14.2000. CLINT HERBST MOVED TO APPROVE THE MINUrES OF THE REGULAR MEETING OF FEBRUARY 14,2000 WITH THE CORRECTION TO PAGE 5, ITEM #11, WEST BRIDGE PARK LANDSCAPING STRUCTURE SHOULD BE UJENTIFI ED AS A KEYSTONE TERRACED WALL. BRUCE THIELEN SECONDED THE MOTION. MOTION CARRIED WITH BRIAN STUMPF ABSTAINING. 3. Consideration of adding items to the agenda. Bruce Thielen requested that staff salaries, vacation and stalf structuring for thc Community Center he added to the agenda. 3A. Summarv of closed meetin2: held on Februarv 17.2000 at 5 p.m. Mayor Belsaas stated that the Council met in a closed session on February 1 Jlh to discuss the litigation involving the Gold Nugget Development, City of Monticello and the MOAA Board. The City will pursue obtaining additional insurance coverage for the City and the MOAA Board. City Administrator, Rick Wolfsteller, indicated that he had spoken to Franklin Denn, Township Chair and a representative on the MOAA Board and Mr. Denn felt the question of obtaining the insurance coverage should be discussed by the MOAA Board at their March I st meeting. 4. Citizens comments/petitions. requests, and complaints. None L . . . ~, Council Minutes - 2/28/00 5. Consent Agenda A. Consideration of waiving statutory liability limits for City insurance renewals. Recommendation: Move that the City of Monticello does not waive the monetary limits on tort liability established by Minnesota Statute 466.04. B. Consideration to review and accept EDA year end financial statement, activity report and 2000 proposed budget. Recommendation: Approve a motion to accept the EDA Balance Sheet, Statement of Revenues, Expenditures and Changes in Fund Balance, 2000 Cash Flow Projections and the Annual Activity Reports as presented. C. Consideration of approving modification to DMRF Guidelines. Recommendation: Approve a motion to modify the DMRF Guidelines as recommended by the EDA. D. Consideration of approving a joint resolution supporting annexation of Rolling Woods property. Recommendation: Move to adopt ajoint resolution supporting annexation of the Rolling Woods subdivision contingent upon the developer requesting detachment from the City in the event the annexed area has public improvements on less than 50(1<) of the annexed area at the end of the three years. E. Consideration of approving plans and specifications for ballfield lighting and authorizing advertisement for bids. Recommendation: Approve the plans and specifications and authorize advertisement for proposals for City Project No. 2000-01 C, Lighting of Two (2) Softball Fields. BRUCE THIELEN MOVED TO APPROVE ITEMS 5A-5E ON TI--IE CONSENT AGENDA AS PRESEN'fED. BRIAN STUMPF SECONDED THE MOTION. MO'J'ION CARRIED UNANIMOUSL Y. 6. Consideration of items removed from the consent ae:enda for discussion. None 7. Public "carinI! _ Chelsea Road West from Sandbere: Road to 90th Street and consideration of authorizine: preparation of plans and specifications. City Engineer, Bret Weiss made a presentation on the proposed improvements to Chelsea Road West and the improvements for Phase] of the Groveland Subdivision. The engineer reviewed the proposed street improvements, storm sewer construction and the improvements to two storm water ponds identified as the Olson pond and the dentist office pond. He also covered proposed sewer and watermain construction ineluding construction of some trunk facilities which although included in the feasibility report would not be constructed until later. Bret Weiss reviewed each phase of the project: 1) Chelsea Road West (Sandberg Road to Street A); 2 z Council Minutes - 2/28/00 . 2) Chelsea Road West (Street A to Street C) and 3) the residential streets within the Groveland development. 'fhe estimated cost for the improvement is $3,371,521.44. Hret Weiss stated that working out issues related to the right-of-way was one of the difficulties encountered on this project. It is proposed that the $89,000 the City incurred for right-of-way would be included as part of the project costs and assessed to the property owners proportionally with the developer of the Groveland property contributing $18,000. Bret Weiss explained the City's current storm sewer policy, the proposed assessment for developed properties and the trunk charges that would be collected when vacant properties developed. . Bret Weiss addressed the issue raised by Milton Olson about the expansion of the pond by their property. Mr. Olson was concerned about the effect the pond expansion would have on the ground water level. Utility lines were installed in this area at what was then l' above the ground water table. If the ground water level changes because of expansion to the pond there may be the possibility that the utility lines will be lower than the ground water table. lfthat is the case then dewatering of the area would have to be done before any work could be done on the utility lines. Bret Weiss stated that in his opinion this pond was not the only one driving the ground water table. Most of the water coming into the pond will be surface water, not ground water and will be outletted to another pond. Mr. Olson would like something in writing from the City stating that they would provide assistance in pumping the water level down if he needed to work on the utility lines. The Council indicated that while they were willing to assist the property owner with dewatering, if necessary, they were reluctant to commit future Councils to that obligation. Clint Herbst suggested that any dewatering costs could be assessed against the benefitting properties that contribute runoff to that pond. Bret Weiss also presented a preliminary assessment roll and briefly reviewed that. He explained the time line for the project noting that if plans and specifications were ordered they would be submitted to the Council at their first meeting in April. Mayor Belsaas opened the public hearing. Milton Olson spoke and expressed his concerns about the ponding area. He indicated that previously the ponding area had been dry at various times. He felt that with the expansion of the pond, water would be standing there all the time. For that reasein he felt it was necessary to request assistance from the City should the water in that area become a problem, especially if he needed to work on the utility lines on his property. While he noted that water was not a problem in the past, it was not a certainty that would be the case in the future. Brian Stumpf indicated that he would like to see the City commit to assist the property owner and then the City could always decide if they wanted to assess the costs back. City Engineer, Bret Weiss will draft a letter to that effect. . Warren Olson also questioned the left turn lane from TH 25 onto Chelsea Road and the problem that exists with the short distance there was to get into the right lane before turning onto Sandberg Road. He noted that as traffic increased this problem would be more noticeable. 3 z. . . 8. . ". Council Minutes - 2/28/00 John Michaelis of Gould Brothers Chevrolet Co. and Dean Carlson of D &D Bus Service, Inc. submitted a letter to be included as part of the hearing record that outlined their views on the proposed project. Jay Morrell questioned his proposed assessment for storm sewer. He questioned whether his property runoff entered into the storm sewer area. Bret Weiss indicated that although he did not have the storm water calculations with him, the map indicated that a portion of his property did drain into this area and he was proposed to be assessed for the portion that does drain to this area. Bret Weiss will check and verify the storm water calculations for this property. Mayor Belsaas then closed the public hearing. BRIAN STUMPF MOVED TO ADOPT THE RESOLUTION ORDERING PREP ARA nON OF PLANS AND SPECIFICATIONS FOR THE CONSTRUCTION OF CHELSEA ROAD WEST FROM SANDBERG ROAD TO 90TIl STREET AND THE IMPROVEMENTS FOR PHASE I OF THE GROVELAND ADDITION CONTINGENT ON THE DEVELOPER PROVIDING A DEPOSIT EQUAL TO THE COST OF PREPARING PLANS AND SPECIFICATIONS WITH THE DEPOSIT TO BE REFUNDED TO THE DEVELOPER AT SUCH TIME THAT THE DEVELOPMENT AGREEMENT IS APPROVED AND THE PROJECT ORDERED. BRUCE THIELEN SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. Discussion on Council meetine attendance. Mayor Bclsaas noted that there was some question on attendance at the meetings which was why this item was placed on the agenda. Bruce Thielen felt that it was important in order for the Council to be effective that all members be present. Brian Stumpf indicated that he had made it known to the City Administrator that he would not be present at the last meeting and the special meeting. He had indicated an alternate time that he could make the special meeting but the meeting was held on the original date. He stated that he had good attendance record and it was just circumstances and not a change in availability that made him unable to attend the previous meetings. SA. Personnel Issues. The Personnel Committee consisting of Roger Belsaas, Bruce Thielen and Rick Wolfsteller had met prior to the regular Council meeting and a number of items from the Personnel Committee were being brought before the Council for consideration. The Personnel Committee would like to see another salary survey done similar to the one that the League of Minnesota Cities had done for the City some time ago. It was also suggested that the City look at placing a cap on unused vacation and sick leave as there was concern about the amount of financial liability the City had as a result of the unused vacation/sick leave. It was also the recommendation of the Personnel Committee that the vacation time being increased to ten days 4 L . . Council Minutes - 2/28/00 f()[ years 0-5 of employment with 6-10 years being 15 days and one additional day for each year from year lIon with a maximum of 22 days. There was discussion whether these proposed changes would apply to union personnel. It was noted that there was problem attracting applicants because of the vacation issue but there was also concern about changing the union contract at this time. BRUCE THIELEN MOVED '1'0 AUTtIORIZE CITY STAFF PREPARE A SALARY SURVEY, MAKE A RECOMMENDATION TO THE COUNCIL ON A CAP FOR SICK LEAVE AND VACATION AND CHANGE THE VACATION SCHEDULE AS FOLLOWS: 0-5 YEARS 6-1 0 YEARS 11+ YEARS 10 DAYS 15 DAYS 15 DAYS PLUS ONE ADDITIONAL DAY FOR EACH YEAR WITH A MAXIMUM OF 22 DAYS AND AUTHORIZE CITY ADMINISTRATOR AND PUBLIC WORKS DIRECTOR TO NEGOTIATE VACATION SCHEDULES FOR UNION STAFF AS NECESSARY. ROGER CARLSON SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 9. Approve payment of bills for Februarv. BRUCE TI HELEN MOVED TO APPROVE PAYMENT OF BILLS FOR FEBRUARY. BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. The hours of operation for the Community Center was briefly discussed. Changes in the hours of operation arc being proposed with the Community Center opening at 8 a.m. Monday-Friday, 9 a.m. on Saturday and 11 a.m. on Sunday. The staffing was discussed and it was suggested that in order to stail the building adequately there may need to be some modification to job descriptions and adding of a part-time employee. There is the realization that until a pattern of use is determined, the staff will have to be flexible in meeting the staffing needs for the facility. 10. Adjourn CLINT HERBST MOVED TO ADJOURN AT 8 P.M. AND BRUCE THIELEN SECONDED TIlE MOTION. MOTION CARRIED UNANIMOUSLY. . Recording Secretary "" 5 .~ . . . SA. A. Council Agenda ~ 3/13/00 Consideration of resolution authorizine: the issuance of a charitable gambling license for the Ducks Unlimited Banauet. (R W) REFERENCE AND BACKGROUND: The Wright County Chapter of Ducks Unlimited will be holding their annual banquet on Monday, May 8, 2000 at the Monticello Roller Rink. Ducks Unlimited will be applying to the State Gambling Control Board for issuance of a gambling license to conduct a raffle. Before a license can be issued by the State Gambling Control Board, a resolution needs to be passed by the City either supporting or denying the applicant's request. 'fhe license for this event has been approved for the past several years. The City is not aware of any problems with the license being issued for this event. B. AL TERNA TIVE ACTIONS: c. 1. Adopt a resolution authorizing the State Gambling control Board to issue a gambling license. STAFF RECOMMENDATION: It is the recommendation of the City Administrator that the resolution be adopted. D. SUPPORTING DATA: . Copy of Application . Copy of Resolution '<H:,:,,:,I,;;I'b;~a;~~l*~,!l~~";':'q,i!~~~!~tj~H;"::":i':': Organization Name Previous lawful gambling exemption number \jc\i-s U c.."'c. -h.. Wn~ W-(OUh~ - <gbO \ '2 ...C\b -001 Street . City S ate Zip Code County L.f7 ~ N\c.-f\ \\ "S-\--tV~\(OJt-. St-\V\ \c.~(<~ \ N\.N SS37b Wr", - W Name of Chief Executive Officer of organization (CEO) Daytime Phone number of CEO First Name Last Name For Board Use Only Fee Paid Check # Initals Date Reed LG220 Rev06/95 Minnesota Lawful Gambling Application for Authorization for an Exemption from Lawful Gambling License . :~:i :1':;: :~::::.: '.'..:,H~::.;::- ; ":::':'::r,::HU:'i' G \Qt2-~\er reasurer , Last Name C'-l2) 497 - 3770 Daytime Phone Number of Treasurer V- D t-f .' ::<:::';!:~I .:~.<:',!'.:;i:\:;:'::;.:)::I\iT\~j\:::!i:::Y:n:ml1:!;;::tt,:, .,t;i!X~~:i:i( :" .,'. . Type of NonifrOf;('q'rganizatiorr . '::::i(,:'~:',:H)C '::.:-:)>" ',:,,":' ",',. " ".". Fraternal Veterans D Religious ttn Other nonprofit Check the box that indicates the type of proof attached to this application by your organization: lCl1RS letter indicating income tax exempt status Gertificate of good standing from the Minnesota Secretary of State's office DA charter showing you're an affiliate of a parent nonprofit organization Droof previously submitted and on file with the Gambling Control Board Check the box below which best describes your organization , .,"' ,: : ,. ,: ,', '~.::: ~.>~:ir:E:,~j<i)<i':;iU:,j~::::i::,;lii:I:,;;:i:::::\\!~,::;!~' :,/::: ".:.:i '<i\;.:':" :' ,~',',' ',::; ::;:::,' ;' ::: :::<~ ! :'!::,:::,:::o: /:;[:\:i::>'.: Gambling"e(~rI'~~'~,s,':'fJt~rmati~n; Name of Establishment where gambling activity will be conducted t'v\ 0 ':h c-l \\ 0 e..o \ '-c" R- 'Y\- k Street City State Zip Code County t 'OJ- "--r\i\O\fv..~S 9ft\(" \L 'C kv(\"hcd\o tv\N Date(s) of activity (for raffles, indicate the date of the drawing) SS3<o2 w V"' \ h-t "2--000 Check the box or boxes which indicate the type of gambling activity your organization will be conducting D Bingo ~Raffles D Paddlewheels D pull-tabs D Tipboards Be sure the Local Unit of Government and the CEO of your organization sign the reverse side of this application. For Board Use Only Date & Initials of Specialist _~ L 5~ . :. , , . Local Unitiaf Government Jurisdiction . Is this gambling premises located within city limits? r::;&l Yes 0 No If Yes, write the n~me of the City: \ \ CIty Name M oV\f,e.t I) If No, write the name of the County and the Township: County Name .. Township Name Check the appropriate status of the Township: urganized Dnorganized Local..t.iilitbf Govetnmimf:4tknowledgment 1. The city must sign this application if the gambling premises is within city limits. 2. The county and township must sign this applica- tion if the gambling premises is not within city limits. 3. DO NOT submit this application to thc Gambling Control Board if it is denied by the local unit of government. 4. NOTE: A Township may not deny an application. Upon submission of this application to the Gambling Control Board. the exemption will be issued not more than 30 days (60 days for cities of the 1 st class) from the date the local unit of government signed the applfcation. provided the application is complete and all necessary information has been received, unless the local unit of government passes a resolution to specifically prohibit the activity. A copy of that resolution must be received by the Gambling Control Board within 30 days of the date filled in below. Cities of the first class have 60 days in which to disallow the activity. Township Acknowledgment of Awareness of Application Signature of person acknowledging application Date Signed: Title of person acknowledging application i'Oath.'OfChle:tEXe~tJttve..'Offlcei)',"':iii;' this application and all information is true. accurate and complete. . S mit th plication at least 45 days prior to your scheduled date of activity. Be sure to attach the $25 application fee and a copy of your proof of nonprofit status. Mail the complete application and attachments to: Gambling Control Board 1711 W. County Rd B Suite 3005 Roseville, MN 55113 This publication will be made available In alternative format (i.e. large print, braille) upon request. Questions on this form should be directed to the licensing Section of the Gambling Control Board at (612)639-4000. Hearing impaired individuals using a TOO may call the Minnesota Relay Service at 1~800-627-3529 in the Greater Minnesota Area or 297-5353 in the Metro Area. The information requested on this form will be used by the Gambling Control Board (GCB) to determine your compliance with Minnesota Statues and rules governing lawful gambling activities. All of the information that you supply on this form will become public information when received by the GCB. DO SA . . . '- RESOLUTION 2000-14 RESOLUTION AUTHORIZING THE ISSUANCE OF A GAMBLING LICENSE WHEREAS, the Wright County Chapter of Ducks Unlimited has submitted an application to the City Council of Monticello for the issuance of a charitable gambling license to conduct gambling at a banquet to be held May 8, 2000 at the Monticello Roller Rink located in Monticello, Minnesota; and WHEREAS, upon review of the organization's activities, the Council is not opposed to the gambling license being issued by the State Gambling Control Board, NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL that the Wright County Ducks Unlimited application for license issuance listed above is hereby approved and the State Gambling Control Board is authorized to proeess the application. Adopted by the Monticello City Council this 13th day of March, 2000. ATTEST: Roger Belsaas, Mayor Riek WolfsteUer, City Administrator 5~ ..._.~_..- . . , Council Agenda - 3/13/00 5B. Consideration of a resolution authorizine issuance of a charitable gambling license for Monticello Youth Hockey. (RW) A. REFERENCE AND BACKGROUND: The Monticello Youth Hockey Association is requesting approval to conduct charitable gambling operations at llawks Sports Bar & Grill. The setup consists of four boxes which are run from behind the bar with the employees of Hawk's doing the distribution. The Monticello Lions Club also has a booth at this location. Prior to the State Gambling Control Board issuing a license, the City Council must pass a resolution approving or denying the application. B. AL TERNA TIVE ACTIONS: 1. Adopt a resolution authorizing the State Gambling Control Board to issue a pull tab license to the Monticello Youth Hockey Association at I-Iawks Sports Bar and Grill. 2. Do not approve the resolution. C. STAFF RECOMMENDATION: The City Administrator recommends adopting the resolution authorizing the issuance of the license. I). SUPPORTING DATA: · Application/Site Agreement · Letter from Youth Hockey Association · Resolution FOR BOARD USE ONLY Check # Initials Date . Minnesota Lawful Gambling Premises Permit Application.. LG214 Base # PP# Fee Page 1 of 3 1/99 Class of Permit Check one: o Class A - $400 Pull-tabs, tipboards, paddlewheels, raffles, bingo ~ Class B _ $250 pull.tabs, tipboards, paddlewheels, raffles o Class C. $200 Bingo only OR bingo and pull-tabs when total gross receipts do not exceed $50,000 per year o Class 0 - $150 Raffles only Organization Information Organization name (as it appears on documentation filed with Minnesota Secretary of State or Internal Revenue Service) Base license number oL{/i.f Daytime phone number (bIZ... ) 1/7-0 1~"I'l ~ d 111'& /' Gambling Premises Information Name of establishment where gambling will be conducted Street address (do not use a P.O. box number) JlqwK's -:,.( S BQr.../. G,-;' 69 a-r+ bIll: City & county where gambling premises is located-OR- Township & county where gambling premises is located if outside city limits . /f1Dt1,-f,'aJ/, w.,./~ hi Is the premises located within city limits? Yes [t) No 0 If No, is township: 0 Organized o Unorganized o Unincorporated Does your organization own the building where the gambling will be conducted? o Yes ~ No If no, attach (1) the appropriate lawful gambling lease form, and (2) the sketch of all leased areas with dimensions and square footage clearly defined A lease and sketch are not required for class D applications. Name of legal owner of premises Address City State/Zip II1hu/l-p t11N S'S 161-- Address(es) of Storage Space of Gambling Equipment List all locations where used and unused gambling product is stored. Do not use-a P.O. box number. (Attach an additional sheet if necessary.) Address ~ StatelZip Questions? Call the Licensing Section of the Gambling Control Board at 651.639-4000. If you use a TTY, you can call the Board by using the Minnesota Relay SelVice aI1-800-627 -3529 and ask to piace a call to 651-639-4000. This form will be made available in alternative format (i.e. large print, Braille) upon request. . 52 Premises Permit Application - LG214 Page 2 of 3 1/99 . Bingo Occasions - for Class A or C Permits If applying for a class A or C permit, enter days and beginning/ending hours of bingo occasions (indicate A.M. or P.M.). No more than ten bingo occasions may be conducted per week. An occasion must be at least one and one-half hours, not to exceed four hours. ~ Beoinning/Endina Hours ~ Beainnina/EndinQ Hours ~ Beainnina/Endina Hours to to to to to to to to Gambling Bank Account Information Bank name Bank address , to to Bankaccountnumbe~ City State/Zip code * New organizations: The account number may be obtained and submitted to the Gambling Control Board within ten days after you receive your premises permit. j~lIme'faddress,.'and...tltleOf:member8'a~Ortzed....~~.~.lg~;~hec;~1f,..:tm'h~;lJ~m ....olllanlZatlon.streasurermaynot handle:gambllngfunds~ .:'ii..i:.': ...:;< .........:,;.... . . Name Address odd :k '^ '" fIl &fte r< ~ .kke 3D Title P11.J.L 4/6" 1t161t h..t U 0 b' 6 It. ~'f-;V'"v' ~,p~t" ceo Acknowledgment Gambling site authorization I hereby consent that local law enforcement officers, the board or agents of the board, or the commissioner of revenue or pUblic safety or agents of the commissioners, may enter the premises to enforce the law. Bank records Information The board is authorized to inspect the bank records of the gambling account whenever necessary to fulfill requirements of current gambling rules and law. Organization license authorization I hereby authorize the Gambling Control Board to modify the class of organization license to be consistent with the class of permit being applied for. ..... 'W" -.' Oath I declare that: 1. I have read this application and all information submitted to the board is true, accurate, and complete; 2. all other required information has been fully disclosed; 3. I am the chief executive officer of the organization; 4. I assume full responsibility for the fair and lawful operation of all activities to be conducted; 5. I will familiarize myself with the laws of Minnesota governing lawful gambling and rules of the board and agree, if licensed, to abide by those laws and rules, including amendments to them; 6. any changes in application information will be submittEld to the board and local unit of government within ten days of the change; and 7. I understand that failure to provide required information or providing false or misleading information may result in the denial or revocation of the license. Signature of chief executive officer (Designee may not sign) / / Date :58 . . . Premises Permit Application - LG214 Page 3 of 3 1/99 Local Unit of Government Acknowledgment and Approval "" ",'''' '"''''''",'', m.". , ""'i,"'";,',,"",""",,""".,"",, ,. "';'" "," """",' "'." ",""""""', " """,' ',"',' ' ".' , ", "" ' "',,.,' IUh~'gambllngPremI8es'8~lthlnclty:llrI1lts;,the clty:m~~~.lgn,.thl$al'flllcatlon and provide a 1'88()lutlon~ On behalf of the city, I hereby acknowledge this application for lawful gambling activity at the premises located within the city's jurisdiction, and that a Print name of city resolution specifically approving or denying the application will be forwarded to the applying organization. Signature of city personnel receiving application Title Date I I llftl;1e;g.iriblljjg,P!8rt1lses:ls:,It)catttd.lhil;toW...~~IP~bOth:the:;~()~~WJ.jjdt~wnt;hlp:!rouS~,~lgl1tI\18;aPI'II~tlc)...~' The county must provide aresolution.: For the township: On behalf of the township, I acknowledge that the organization is applying to conduct lawful gambling activity within the township Print name of township limits. , A township has no statutory authority to approve or Signature of township official acknowledging application deny an application (Minn. Stat. sec. 349.213, subd. 2). Title Date I I For the county: On behalf of the county, I hereby acknowledge this application for lawful gambling activity at the premises located within the county's Print name of county jurisdiction, and that a resolution specifically approving or denying the application will be forwarded to the applying organization. Signature of county personnel receiving application Title Date I I The information requested on this form (and any attachments) will be used by the Gambling Control Board (Board) to determine your qualifications to be involved in lawful gambling activities in Minnesota, and to assist the Board in conducting a background investigation of you. You have the right to refuse to supply the information requested; however, if you refuse to supply this information, the Board may not be able to determine your qualifications and, as a consequence, may refuse to issue you a premises permit. If you supply the information requested, the Board will be able to process your application. This form may require the disclosure of your Social Security number. If so, your Social Security number will be used to determine your compliance with the tax laws of Minnesota. Authorization for requiring your Social Security number is found at 42 U.S.C. 405 (c)(i). Your name and address will be public information when received by the Board. All the other information that you provide will be private data about you until the Board issues your premises permit. When the Board issues your premises permit, all of the information that you have provided to the Board in the process of applying for your premises permit will become public except for your Social Security number, which remains private. If the Board does not issue you a premises permit, all the information you have provided in the process of applying for a premises permit remains private, with the exception of your name and address which will remain public. Private data about you are available only to the following: Board members, staff of the Board whose work assignment requires that they have access to the information; the Minnesota Department of Public Safety; the Minnesota Attorney General; the Minnesota Commissioners of Administration, Finance, and Revenue; the Minnesota Legislative Auditor, national an.d international gambling regulatory agencies; anyone pursuant to court order; other individuals and agencies that are specifically authorized by state or federal law to have access to the information; individuals and agencies for which law or legal order authorizes a new use or sharing of information after this Notice was given; and anyone with your consent. S,b . . . Premises Permit Application . LG214, Instructions 1/99 Attachments 1. Lease and sketch. If the gambling premises is leased, attach a copy of: . the appropriate lawful gambling lease form, and . the sketch of all leased areas with dimensions and square footage clearly defined. Lease forms: LG221 _ Lease for pull-tab, paddlewheels, tipboard, and/or raffle activity. LG222 - Lease for bingo activity. LG223 - Lease for pull-tab dispensing device activity. 2. Permit Fee. For each premises permit application, attach a separate check, payable to the State of Minnesota, for the appropriate permit fee; Class A - $400 Class B - $250 Class C - $200 Class D - $150 3. Resolution of Approval. . The premises permit application must be approved by the local unit of government (city or county). Attach a copy of the resolution which shows approval of your application. . If the local unit of government denies your application, do not submit the application to the Gambling Control Board. " Where to mail your application Mail your completed application with the attachments to: Gambling Control Board Suite 300 South 1711 West County Road B Roseville, MN 55113 Processing Allow ten weeks for processing the application. Your organization's chief executive officer will be contacted in writing regarding any missing information. Term of permit The expiration date of a premises permit is the same as the expiration date of your organization's license. Local ordinances Check with the local unit of government (city or county) regarding local ordinances, if any, that apply to lawful gambling. Local ordinances may be more restrictive than statute or rule. sS Minnesota Lawful Gambling Lease for Pull..Tab, Paddlewheel, Tipboard, and/or Raffle Activi .. LG221 . City /J?~ 111,( (fA City Zip 553(j~ Zip Daytime Phone (U I z- ) 2f:J 'lID 0 Daytime Phone /1 . t: '!1et:J1;{'L1rJ City c 7 I .. k't 811/('1 GCB license no. of organization ( ftJ 2 ) 29.5- tfA Daytime Phone ((pll. ) 27') ~IIIJ() Daytime Phone t:..:~-71/f' J,_ --.J l(./ Zip . Total rent cannot exceed $1,000 per month for all non-bingo activity for this premises. · For bingo activity, use lease form LG222. · For pull-tab dispensing machines, use lease form LG223. · An organization may not pay rent to itself or to any of its affiliates for space used for the conduct of lawful gambling. Sketch and Dimensions of Leased Area Rent to be paid per month $ (If no rent Is to be paid, indicate -0-) '-<. . Sketch: For all areas being leased for the conduct of gambling and storage of gambling product at this premises, attach a sketch (drawing) showing: (1) the leased area(s), and (2) the dimensions. Dimensions The leased areas are: feet by feet by feet by feet by feet by Storage Storage . ...............,....... .........,.......< ....:.... .' ..... ....:..... Fpr:.pr~Tise!S...p~rmlt..Rene~I..AppliCatiP9$.:Only::....1"JlP... Chang'tl.ihave,'be'l'l:~.~~eatthe'.tl~te,:y()U do.:no~:~ave.~:i.' co.' ..mplete',.thl...$ectlon...p~..provlde"a..$k~tc::l1. ..' .. .'", ",.,., '" '.",' .",', " ':','.'.:. ,..'.". feet for a total of square feet. feet for a total of square feet. feet for a total of square feet. feet for a total of square feet. feet for a total of square feet. Combined total square feet. Lawful Gambling Activity Type of gambling activity that will be conducted at this gambling premises. Check all that apply. Paddlewheels ~Pull.Tabs Raffles Tlpboards Term of Lease The term of this lease agreement will be concurrent with the premises permit issued by the Gambling Control Board, unless terminated sooner by mutual consent of the lessor and lessee. Amended Lease Only If this is an amended lease showing changes occur- ring during the term of the current premises permit, write in the date that the changes will be effective -1-1-. Both parties that signed the lease must initial and date all changes. . Questions on this form should be directed to the Licensing Section of the Gambling Control Board (Board) at 651-639- 4000. This publication will be made available in altemative format (i.e. large print. Braille) upon request. Hearing impaired individuals using a TTY may call the Minnesota Relay Service at 1-800-627-3529 and ask to place a call to 651-639-4000. The information requested on this form will become publiC information when received by the Board, and will be used to determine your compliance with Minnesota statutes and rules goveming lawful gambling activities. Page 1 of2 1/99 s8 . . . Lease for Pull-Tab, Paddlewheel, Tipboard, and/or Raffle Activity - LG221 I LESSOR PROHIBITIONS I agents are found to be solely 4. The lessor shall not modify or Management of Gambling responsible for any illegal gambling terminate this lease in whole or in part Prohibited conducted at that site that is due to the lessor's violation of the prohibited by Minnesota Rules. part provisions listed on this lease. 7661.0050. subpart 1. or Minnesota Statutes. section 609.75, unless the Arbitration Process organization's agents responsible for The lessor agrees to arbitration when a the illegal gambling activity are also violation of these lease provisions is agents or employees of the lessor. alleged. The arbitrator shall be the eRG. 4. The lessor shall not modify or terminate the lease in whole or in part IACCESS TO PERMITTED PREMISESI because the organization reported to . a state or local law enforcement State of Mmnesota and Law authority or the board the occurrence Enforcement at the site of illegal gambling activity The board and its agents. the in which the organization did not commissioners of revenue and public participate. safety and their ag'ents, and law Other Prohibitions enforcement personnel have access to the permitted premises at any reasonable time during the business hours of the lessor. The owner of the premises or the lessor will not manage the conduct of gambling at the premises. Participation as Players Prohibited The lessor, the lessor's immediate family. and any agents or gambling employees of the lessor will not participate as players in the conduct of lawful gambling on the premises. Illegal Gambling 1. The lessor is aware of the prohibition against illegal gambling in Minnesota Statutes, section 609.75. and the penalties for illegal gambling violations in Minnesota Rules, part 7661.0050, s~bpart 3. 2. To the best ofthe lessor's knowledge. the lessor affirms that any and all games or devices located on the premises are not being used. and are not capable of being used, in a manner that violates the prohibitions against illegal gambling in Minnesota Statutes, section 609.75, and the penalties for illegal gambling violations in Minnesota Rules, part 7661.0050. subpart 3. 3. Notwithstanding Minnesota Rules, part 7861.0050, subp. 3. an organization must continue making rent payments, pursuant to the terms of the lease. if the organization or its 1. The lessor will not impose restrictions on the organization with respect to providers (distributors) of gambling. related equipment and services or in the use of net profits for lawful purposes. 2. The lessor, the lessor's immediate family, and any agents or employees of the lessor will not require the organization to perform any action that would violate statute or rule. 3. If there is a dispute as to whether any of these lease provisions have been violated, the lease will remain in effect pending a final determination by the Compliance Review Group (CRG) of the Gambling Control Board. Organization The organization has access to the permitted premises during any time reasonable and when necessary for the conduct of lawful gambling on the premises. I LESSOR RECORDS MAINTAINED I The lessor shall maintain a record of all money received from the organization. and make the record available to the board and its agents, the commissioners of revenue and public safety and their agents upon demand. The record shall be maintained for a period of 3-1/2 years. OTHER OBLIGATIONS AND AGREEMENTS - Attachment All obligations and agreements between the organization and the lessor are contained in or attached to this lease. (Attach additional sheets if necessary. Any attachments to this lease must be dated and signed by both the lessor and the lessee.) This lease is the total and only agreement between the lessor and the organization conducting lawful gambling activities other than bingo and pull.tab dispensing devices. There is no other agreement and no other consideration required between the parties as to the lawful gambling and other matters related to this lease. Any changes in this lease will be submitted to th ambling Control oard ten days prior to the effective date of the change. . , '. I /JI{:;r teLA- ~ t ) Print Name and Title of Lessor ;;1/9 ttJ Date Signature of Organization Official (Lessee) Date Print Name and TItle of Lessee Page20f2 1199 SB . . . To: From: Date: Subject: Monticello City Counsel Monticello Youth Hockey Association March 9 2000 Purpose for undertaking lawful gambling. The Monticello Youth Hockey Association would like to conduct lawful gambling and the proceeds to be used for the following purposes. . For activities and facilities benefiting youth under the age of 21 such as: 1. Ice arena building fund 2. Improve affordability of Ice time/costs to Monticello youth. 3. Decrease costs of equipment, ice time, and coaching to all initiation level Monticello youth wanting to participate in hockey and possible eventually all ice skating activities. . To provide scholarship funds to eligible Monticello youth under 21 yo. Todd M. Banek, CEO John R. Rogosheske, Gambling Manager Monticello Youth Hockey Association P.O. Box 584 Monticello, Minnesota. 55362 s8> . 1999-2000 MYHA BOARD MEMBERS President Ray Henningson Vice President Todd Banek Treasurer Tina Martin Secretary Teresa Childers Gambling Manager John Rogosheske Ice Coordinator Tricia Stelhnach Coaching Coordinators Mike Mitchell Chuck Lower Equipment Manager Mark Lang Initiation coordinator John Bell . Head Registrar Lisa Wing District 5 Representative Vance Ellis 4th Street Manager Tom Bitzer Newsletter Marilyn Henningson Tournament Coordinator Trish Taylor Special Fundraising Coordinator Mark Christianson Todd M. Banek, CEO John R. Rogosheske, Gambling Manager ~. Monticello Youth Hockey Association P.O. Box 584 Monticello, Minnesota. 55362 5~ . . . To: From: Date: Subject: Monticello City Counsel Monticello Youth Hockey Association March 9 2000 Internal Operations for Lawful Gambling Here is an outline of our organizations internal controls to ensure integrity of our gambling operation by establishing accounting and administrative controls listed below. The chief executive officer and gambling manager will be responsible for the following: . Preparing monthly reports to the membership. . Ensure membership gives prior authorization for all gambling expenditures. . Records organizational meeting minutes the monthly gambling report and authorization of expenditures. . Authorized to sigh checks from the gambling account (at least two members' signature required). May not be the treasurer. . Prepares gambling bank deposits. . Audits closed games. . Investigates and resolves cash variances. . Reconciles and resolves profit carryover variances . Prepares and verifies accuracy of reports submitted to the Department of Revenue and Gambling Control Board. . Verifies organization's compliance with expense calculations. . Handles fund losses of missing inventory, tickets and/or receipts for games in play. The treasurer will be responsible for the following: . Audits gambling bank deposits. The Gambling manager and assistant gambling manager will be responsible for the following . Keeping petpetual inventory records The CEO will be responsible for the following: . Conducting the physical Inventory. Todd M. Banek, CEO John R. Rogosheske, Gambling Manager Monticello Youth Hockey Association P.O. Box 584 Monticello, Minnesota. 55362 sB . . . RESOLUTION NO. 2000-16 RESOLUTION AUTHORIZING THE ISSUANCE OF A CHARITABLE GAMBLING LICENSE WHEREAS, the Monticello Youth l-lockey Association has submitted an application to the City Council of Monticello for the issuance of a charitable gambling I icense to conduct gambling operations at Hawks Sports Bar and Grill located in Monticello, Minnesota; and WHEREAS, upon review of the organization's activities, the City Council is not opposed to the gambling license being issued by the State Gambling Control Board. NOW TIIEREFORE, BE IT RESOLVED BY TIlE CITY COUNCIL OF MONTICELLO, MINNESOTA that the Monticello Youth Hockey Association's application for license issuance listed above is hereby approved, and the State Gambling Control Board is authorized to process the application. - Adopted by the City Council this 13th day of March, 2000. Roger Belsaas, Mayor ATTEST: Rick Wolfsteller, City Administrator Sb . City Council Agenda - 3/13/00 5D. Consideration to approve the Subordination Aereement associated with the Contract for Private Development between Twin City Die Castines. the ORA. and the City of Monticello. (O.K.) A. Reference and backeround: Upon the preparation of loan closing documents for the approximate $4.8 million Industrial Revenue Bond (IRB) for the Twin City Die Castings project, the Ag Board reviewed the Contract for Private Development and required the following: a. A Subordination Agreement be executed by the City and HRA in favor of the Ag Board and its successors and assigns. The Subordination Agreement was reviewed by HRA Attorney Dan Greensweig and Greensweig is requesting the Attorney for the Ag Board add one provision to the Agreement: The Authority has the ability to cure upon default ofthe Contract. The Attorney for the Ag Board has agreed to this request. Additionally, Twin City Die Castings will be added as a party to the Subordination Agreement. B. Alternative Action: . 1. A motion to approve the Subordination Agreement associated with the Contract for Private Development between Twin City Die Castings, the HRA, and the City of Monticello. 2. A motion to deny approval ofthe Subordination Agreement. 3. A motion to table any action. C. Recommendation: The City Administrator recommends Alternative No.1. This is more or less a housekeeping item. D. Supportin~ Data: Copy ofthe Subordination Agreement. Amended version forth coming for execution. . 1 . . . SUBORDINATION AGREEMENT (Contract for Private Development) THIS AGREEMENT is made as ofthis _ day of March, 2000, by the HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO, MINNESOTA, a public body corporate and politic under the laws of Minnesota (the Authority) and CITY OF MONTICELLO, a municipal corporation (the City) in favor ofMINNESOT A AGRICULTURAL AND ECONOMIC DEVELOPMENT BOARD, an authority of the State of Minnesota and its successors and assigns (Mortgagee). Preliminary Statement of Facts TWIN CITY DIE CASTINGS COMPANY, a Minnesota corporation (the Corporation) is the owner of certain real property located in Wright County, Minnesota legally described on Exhibit A attached hereto and incorporated herein by reference (the Property). The Property is subject to the Contract for Private Development (the Development Contract) dated October 25, 1999, between the Authority, the City and the Corporation, which Development Contract was filed in the office of the Wright County Recorder on ' as Document No. Mortgagee has loaned to the Corporation $ (the Loan) pursuant to the terms and conditions of the Loan Agreement (the Loan Agreement) between the Corporation and Mortgagee dated as of March ,2000. To secure the performance of the Corporation of its obligations under the Loan Agreement, the Corporation has granted to Mortgagee, a Combination Mortgage, Security Agreement and Fixture Financing Statement (the Mortgage) dated as of March , 2000, which Mortgage was filed for record in the office of the Wright County Recorder on , 2000, as Document No. Mortgagee requires as a condition to making the Loan that the Authority and the City subordinate its lien and rights under the Development Contract to the lien of the Mortgage. Doc# 1207417\1 .3/3/00 5\J . . . NOW, THEREFORE, in consideration of the foregoing and in consideration of One Dollar ($1.00) and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by the Authority and the City, the Authority and the City hereby agree as follows: 1. Subordination of Development Contract. The Authority and the City hereby agree that the Development Contract and all rights and remedies of the Authority and the City thereunder are hereby subjected and subordinated and shall remain in all respects and for all purposes subject and subordinate to the lien of the Mortgage and all amendments, modifications, renewals and extensions thereof and subject to and subordinate in all respects to the rights and interests of the Mortgagee and its successors and assigns as fully and with the same effect as if the Mortgage had been duly executed, acknowledged and filed for record and the indebtedness secured by the Mortgage fully disbursed prior to the execution of the Development Contract. 2. Agreements Not Binding on Mortgagee. In addition to the other rights granted to Mortgagee hereunder, if Mortgagee acquires title to the Property by means offorecIosure, deed in lieu of foreclosure, or by any other means or manner, then, effective as of the date Mortgagee acquires title to the Property, the Development Contract shall cease to encumber the Property or any portion thereof and thereafter Mortgagee may own, convey and sell all or any part of its interest in the Property free and clear of the Development Contract. 3. Benefit of Parties. This Agreement shall run for the benefit of Mortgagee and its successors and assigns under the Mortgage. IN WITNESS WHEREOF, the Authority and the City have executed this Agreement as of the date first shown above. HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO, MINNESOTA By Its: By Its: 2 SD . . . CITY OF MONTICELLO By Its; By Its; STATE OF MINNESOTA ) ) ss. COUNTY OF WRIGHT ) The following instrument was acknowledged before me this ~ day of 2000, by the and the of the HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO, MINNESOTA, a public body corporate and politic under the laws of Minnesota (the Authority), on behalf ofthe Authority. Notary Public STATE OF MINNESOTA ) ) ss. COUNTY OF WRIGHT ) The following instrument was acknowledged before me this ~ day of 2000, by the and the OF MONTICELLO, a municipal corporation, on behalf of the corporation. of the CITY Notary Public 3 sD . THIS INSTRUMENT WAS DRAFTED BY: LINDQUIST & VENNUM (LLK) 4200 IDS Center 80 South Eighth Street Minneapolis, MN 55402 (612) 371-3211 . . 4 50 . . . EXHIBIT A Legal Description of the Property Lot 1, Block 1, Monticello Commerce Center 4th Addition, Wright County, Minnesota. 5 SD . City Council Agenda - 3/13/00 5E. Consideration to aoorove the Estoopel Certificate associated with the Contract for Private Development between Twin City Die Castin2s. the HRA. and the City of Monticello. (O.K.) A. Reference and back2round: Upon the preparation ofloan closing documents for the approximate $4.8 million Industrial Revenue Bond (IRB) for the Twin City Die Castings project, the Ag Board reviewed the Contract for Private Development and requires the following: a. An Estoppel Certificate be executed by the City and the BRA verifYing, among other things, that the Development Contract is in full force and effect, that no modifications have been made to the Development Contract, that no defaults exist thereunder and the like. b. The BRA approves the mortgage financing for the project. . The IRB will be issued by the Minnesota Department of Trade and Economic Development financing the building construction and machinery and equipment. It is anticipated the closing may take place March 15, 2000. The Estoppel Certificate was reviewed by BRA Attorney Dan Greensweig and he is requesting the Attorney for the Ag Board add Twin City Die Castings as a party to the Certificate. Attorney Greensweig recommends approval of the Certificate. Within the Contract for Private Development, the construction commencement date was changed from December 1, 1999, to January 1,2000, due to the time associated with research and development of a fire code plan for the magnesium processing plant. Due to the delay in the delivery of construction materials and supply, the City Council is asked to approve changing the construction completion date for Phase I from June 1, 2000, to September 1,2000. The HRA Attorney and Twin City Die Castings concur with changing the completion date to avoid default of the Contract. B. Alternative Action: 1. A motion to approve the Estoppel Certificate, acknowledging the change in the construction commencement date from December 1, 1999, to January 1,2000, and approving and acknowledging the change of the construction completion date for Phase I from June 1, 2000, to September 1, 2000, within the Contract for Private Development between Twin City Die Castings, the BRA, and the City of Monticello. . 1 . City Council Agenda - 3/13/00 2. A motion to deny approval of the Estoppel Certificate. 3. A motion to table any action. c. Recommendation: The City Administrator recommends Alternative No.1. approving the certificate and approving and acknowledging the change ofthe construction completion date for Phase I . D. SU(JDortine: Data: Copy of the Estoppel Certificate. Amended version forth coming for execution. . . 2 . . . ESTOPPEL CERTIFICATE THIS CERTIFICATE is made as of this ~ day of March, 2000, by the HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO, MINNESOTA, a public body corporate and politic under the laws of Minnesota (the Authority) and the CITY OF MONTICELLO, a municipal corporation (the City) in favor ofMINNESOT A AGRICULTURAL AND ECONOMIC DEVELOPMENT BOARD, an authority of the State of Minnesota and its successors and assigns (Mortgagee). Preliminary Statement of Facts TWIN CITY DIE CASTINGS COMPANY, a Minnesota corporation (the Corporation) is the owner of certain real property located in Wright County, Minnesota legally described on Exhibit A attached hereto and incorporated herein by reference (the Property). The Property is subject to the Contract for Private Development (the Development Contract) dated October 25, 1999, between the Authority, the City and the Corporation, which Development Contract was filed in the office of the Wright County Recorder on , as Document No. Mortgagee has loaned to the Corporation $ (the Loan) pursuant to the terms and conditions ofthe Loan Agreement (the Loan Agreement) between the Corporation and Mortgagee dated as of March _,2000. To secure the performance of the Corporation of its obligations under the Loan Agreement, the Corporation has granted to Mortgagee, a Combination Mortgage, Security Agreement and Fixture Financing Statement (the Mortgage) dated as of March , 2000, which Mortgage was filed for record in the office of the Wright County Recorder on ,2000, as Document No. Mortgagee requires as a condition to making the Loan that the Authority and the City provide the Mortgagee with this Certificate. NOW, THEREFORE, in consideration ofthe foregoing and in consideration of One Dollar ($1.00) and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by the Authority and the City, the Authority and the City hereby agree as follows: (01) The Development Contract has not been modified, changed, altered or amended in any respect either orally or in writing. (02) The Development Contract is in full force and effect and is not subject to any conditions not set forth in the Development Contract. (03) The Corporation is not in default in the performance of any of the terms or Drn;# 1207428\1-3/3/00 SE . (04) (05) (06) conditions of the Development Contract, nor is there now any fact or condition which, with notice or lapse of time or both, will become such a default. Neither the Authority nor the City has delivered to the Corporation any notice of default with respect to the Corporation's obligations under the Development Contract. Pursuant to Section 7.1 of the Development Contract, the Authority approves of the Loan provided by the Mortgagee. The individuals executing this Certificate on behalf of the Authority and the City represent and warrant that they have the power and authority to execute this Certificate. The Authority and the City acknowledge Mortgagee is relying upon the truth of the statements contained in this Certificate in completing the Loan. The representations contained herein shall inure to the benefit of Mortgagee and its successors and assigns and shall be binding upon the Authority and the City and their successors and assigns. IN WITNESS WHEREOF, this Certificate is dated as of the date first shown above. . . HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO, MINNESOTA By Its: By Its: Sl . . . CITY OF MONTICELLO By Its: By Its: STATE OF MINNESOTA) ) ss. COUNTY OF WRIGHT ) The following instrument was acknowledged before me this _ day of 2000, by the and the of the HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO, MINNESOTA, a public body corporate and politic under the laws of Minnesota (the Authority), on behalf of the Authority. Notary Public STATE OF MINNESOTA ) ) ss. COUNTY OF WRIGHT ) The following instrument was acknowledged before me this _ day of 2000, by the and the OF MONTICELLO, a municipal corporation, on behalf of the corporation. of the CITY Notary Public Sf: . . , THIS INSTRUMENT WAS DRAFTED BY: LINDQUIST & VENNUM (LLK) 4200 IDS Center 80 South Eighth Street Minneapolis, MN 55402 (612) 371-3211 Sf: . EXHIBIT A Legal Description of the Property Lot 1, Block 1, Monticello Commerce Center 4th Addition, Wright County, Minnesota. . . s~ . . , SF. Council Agenda - 3/13/00 Consideration of issuing a gambling license to Lions Club to conduct gambling at the Monticello Country Club. (RW) A. REFERENCE AND BACKGROUND: The Monticello Lions Club is requesting approval to conduct pull tab gambling operations at the Monticello Country Club. The Monticello Lions currently operate pull tab gambling operations at Joyner Lanes and Hawks Sports Bar and Grill. Prior to the State Gambling Control Board issuing a license, the City Council must pass a resolution approving or denying thc appl ication. The stall is not aware of any reason why the Council would not allow the state to issue this license. B. AL TERNA TIVE ACTIONS: c. 1. Adopt a resolution authorizing the State Gambling Control Board to issue a pull tab license to Monticello Lions Club for the Monticello Country Club facility. 2. Do not approve the resolution. STAFF RECOMMENDATION: The City Administrator recommends the resolution being adopted authorizing the issuance of the license. The City is not aware of any reason why the license should be denied. D. SUPPORTING DATA: . Copy of resolution Copy of application . . . . RESOLUTION NO. 2000-15 RESOLUTION AUTHORIZING THE ISSUANCE OF A GAMBLING LICENSE WHEREAS, the Monticello Lions Club has submitted an application to the City Council of Monticello for the issuance of a charitable gambling license to conduct pull tab operations at the Monticello Country Club located in Monticello, Minnesota, and WHEREAS, upon review of the organization's activities, the City Council is not opposed to the gambling license being issued by the State Gambling Control Board, NOW THEREFORE, BE IT RESOL VED BY THE CITY COUNCIL OF MONTICELLO, MINNESOTA that the Monticello Lions Club application for license issuance listed above is hereby approved and the State Gambling Control Board is authorized to process the application. Adopted by the Monticello City Council this 13lh day of March, 2000. ATTEST: Roger Belsaas, Mayor Rick Wolfsteller, City Administrator 5\= . Minnesota Lawful Gambling Premises Permit Application.. LG214 Class of Permit Check one: o Class A . $400 E- Class B - $250 o Class C - $200 D Class D - $150 Base # PP# Fee FOR BOARD USE ONLY Check # Initials Date Page 1 of 3 1/99 Pull.tabs, tipboards, paddlewheels, raffles, bingo Pull-tabs, tipboards, paddlewheels, raffles Bingo only OR bingo and pull-tabs when total gross receipts do not exceed $50,000 per year Raffles only Organization Information Organization name (as it appears on documentation filed with Minnesota Secretary of State or Internal Revenue Service) ,< ;ON S .T.t1ITL.. /llat0/-:e; C' I J J Name of chief executive officer (cannot be your gambling manager) <::Jc~ ~ ~ Fe 4 l<.<; " IV Base license number .BcI/8,~ S- Daytime phone number (,,~-/ )c;3g-... CJ'14 ~ . Gambling Premises Information Name of establisl)ment where gambling will be conducted Street address (do not use a P.O. box number) ty'}Or1+ic~llo COVrlTA'I C'U~ jdO'? Go It c'vrs-e I?oa<i City & COUnty whe", gambling p"'m~es is located-CRT own""p & county when> gambling "",mlses Is located If outside city limits rY10Y\+1 <.'e. ( 10 I LJIIG-HT COtJN'''1' Is the premises located within city limits? Yes ~ NoD If No, is township: D Organized D Unorganized D Unincorporated Does your organization own the building where the gambling will be conducted? DYes jg[ No If no, attach (1) the appropriate lawful gambling lease form, and (2) the sketch of all leased areas with dimensions and square footage clearly defined A lease and sketch are not required for class D applications. Name of legal owner of premises Address City State/Zip (11 O,\~~ C.e../ /0 C 00(\'tv y club) :Ene. ~rl1e 4d'dy"t's5 Address(es} of Storage Space of Gambling Equipment List all locations where used and unused gambling product is stored. Do not use. a P.O. box number. (Attach an additional sheet if necessary.) Address ~ StatelZiD 6lfi 111 f).J {..., '0;//0 , 3(, .I') .:...... "-' &,1 S InM ..:).5-362- /tJ'if'/) Milo/v' /:;Ir~ # d 1/11 /) ....11. ~41 /0 ;111 ;..J .s-S 3~:L . Questions? Call the Licensing Section of the Gambling Control Board at 651-639-4000. If you use a TTY, you can '=' call the Board by using the Minnesota Relay Service at 1-800--627-3529 and ask to place a call to 651-639-4000. This form will be made available in alternative format (i.e. large print, Braille) upon request. ,- \ ~r- Premises Permit Application - LG214 Page 2 of 3 1/99 . Bingo Occasions - for Class A or C Permits If applying for a class A or C permit, enter days and beginning/ending hours of bingo occasions (indicate A.M. or P.M.). No more than ten bingo occasions may be conducted per week. An occasion must be at least one and one-half hours, not to exceed four hours. Day Beainnina/Ending Hours QIDt Beainning/Ending Hours Q.ay Beginning/Ending Hours to to to to Gambling Bank Account Information Bank name k{,R... ~.s; ~ Bank address to to to to to to Bank account number. ~ ;2 CJ S-:7-. 0 State/Zip code City 1/()" ft'.;tJ G S r M O~ 1-.\- e II::::: 1M /-...\ ..5-:-5- 3G 2..- · New organizations: The account number may be obtained and submitted to the Gambling Control Board within ten days after you receive your premises permit. Nam!;"aciciress,' and title ,of members authorized tosig" che~~!,Jio~the gamblirlg account. o~g~nlzatlon'streasurer may 'not handle gambling funds.",,' :';:i' .. . . ,:' :,;::\);;<>;L~~~:^~~,::" . Title Address /}\o.......,.} cHtlO /0 v-o (y;/+-o.J ;9 /1< A/i:- ~~......i; '-~ II..:J /:::. t!.. 4> I q - .. 1/'<.,'- I'v.... ~ I { ~C;;t:>~- BA 1l.:1-c,.J ,.9/Je ,v V 8,.... k" -r( ~ "^ ,....} 5.:"'- Name ;9/k",J C/~\/.~/4,...,j} J ft\ 4 rz./C. '4 (l.Iu e II /.. . t I/,'c. I~' Acknowledgment Gambling site authorization I hereby consent that local law enforcement officers, the board or agents of the board, or the commissioner of revenue or public safety or agents of the commissioners, may enter the premises to enforce the law. Bank records Information The board is authorized to inspect the bank records of the gambling account whenever necessary to fulfill requirements of current gambling rules and law. Organization license authorization I hereby authorize the Gambling Control Board to modify the class of organization license to be consistent with the class of permit being applied for. Oath I declare that: 1. I have read this application and all information submitted to the board is true, accurate, and complete; 2. all other required information has been fully disclosed; 3. I am the chief executive officer of the organization; 4. I assume full responsibility for the fair and lawful operation of all activities to be conducted; 5. I will familiarize myself with the laws of Minnesota governing lawful gambling and rules of the board and agree, if licensed, to abide by those laws and rules, including amendments to them; 6. any changes in application information will be submitted to the board and local unit of government within ten days of the change; and 7. I understand that failure to provide required information or providing false or misleading information may result in the denial or revocation of the license. . Signature of chief executive officer (Designee may not sign) / / Date 5t= Premises Permit Application - LG214 . Page 3 of 3 1/99 Local Unit of Government Acknowledgment and Approval If the gambling premises is within city limits, the city must sign this application and provide a resolution. On behalf of the city, I hereby acknowledge this application for lawful gambling activity at the premises located within the city's jurisdiction, and that a resolution specifically approving or denying the application will be forwarded to the applying organization. u r- J11oNJ/cFLlo f city ~ (d. Signature of city person I receiving application Title CnL; ~ /~ II~ lnil- Date 3 l;l I dtf If the gambling premises is located in a township, both the county and township must sign this application. The county must provide a resolution. For the township: On behalf of the township, I acknowledge that the organization is applying to conduct lawful gambling activity within the township Print name of township limits. A township has no statutory authority to approve or deny an application (Minn. Stat. sec. 349.213, subd. 2). Signature of township official acknowledging application . For the county. On behalf of the county, I hereby acknowledge this application for lawful gambling activity at the premises located within the county's jurisdiction, and that a resolution specifically approving or denying the application will be forwarded to the applying organization. The information requested on this form (and any attachments) will be used by the Gambling Control Board (Board) to determine your qualifications to be involved in lawful gambling activities in Minnesota, and to assist the Board in conducting a background investigation of you. You have the right to refuse to supply the information requested; however, if you refuse to supply this information, the Board may not be able to determine your qualifications and, as a consequence, may refuse to issue you a premises permit. If you supply the information requested, the Board will be able to process your application. This form may require the disclosure of your Social Security number. If so, your Social Security number will be used to determine your compliance with the tax laws of Minnesota. Authorization for requiring your Social Security number is found at 42 U.S.C. 405 (c)(i). . Your name and address will be public information when . received by the Board. All the other information that you provide will be private data about you until the Board issues your premises permit. When the Board issues your Title Date I I Print name of county Signature of county personnel receiving application Title Date I I premises permit, all of the information that you have provided to the Board in the process of applying for your premises permit will become public except for your Social Security number, which remains private. If the Board does not issue you a premises permit, all the information you have provided in the process of applying for a premises permit remains private, with the exception of your name and address which will remain public. Private data about you are available only to the following: Board members, staff of the Board whose work assignment requires that they have access to the information; the Minnesota Department of Public Safety; the Minnesota Attorney General; the Minnesota Commissioners of Administration, Finance, and Revenue; the Minnesota Legislative Auditor, national and international gambling regulatory agencies; anyone pursuant to court order; other individuals and agencies that are specifically authorized by state or federal law to have access to the information; individuals and agencies for which law or legal order authorizes a new use or sharing of information after this Notice was given; and anyone with your consent. sf. Premises Permit Application - LG214, Instructions 1/99 . Attachments 1. Lease and sketch. If the gambling premises is leased, attach a copy of: . the appropriate lawful gambling lease form, and . the sketch of all leased areas with dimensions and square footage clearly defined. Lease forms: LG221 - Lease for pull-tab, paddlewheels, tipboard, and/or raffie activity. LG222 - Lease for bingo activity. LG223 - Lease for pull-tab dispensing device activity. 2. Permit Fee. For each premises permit application, attach a separate check, payable to the State of Minnesota, for the appropriate permit fee: Class A - $400 Class B - $250 Class C - $200 Class D - $150 3. Resolution of Approval. . The premises permit application must be approved by the local unit of government (city or county). Attach a copy of the resolution which shows approval of your application. . If the local unit of government denies your application, do not submit the application to the Gambling Control Board. Where to mail your application Mail your completed application with the attachments to: Gambling Control Board Suite 300 South 1711 West County Road B Roseville. MN 55113 . Processing Allow ten weeks for processing the application. Your organization's chief executive officer will be contacted in writing regarding any missing information. Term of permit The expiration date of a premises permit is the same as the expiration date of your organization's license. Local ordinances Check with the local unit of government (city or county) regarding local ordinances. if any. that apply to lawful gambling. Local ordinances may be more restrictive than statute or rule. . sr-- . . '. City COllncil Agenda -03/13/00 SG. Consideration ofadootine: amendments to Citv/National Guard agreement e:overnin2: development and operation of the Monticello Community Center. A. REFERENCE AND BACKGROUND The City is asked by the National Guard to adopt amendments to the agreement that assist the National Guard in obtaining Federal Funding to support its share of the project. According to Dan Greensweig of Kennedy and Graven, the amendments are not suhstantive. In approving these changes, the City makes no sacrifice in helping out the Guard. There are some items that statTwould like to see completed before the agreement is signed. They are noted in the contingencies attached to the motion. B. ALTERNATIVE ACTIONS 1. Motion to approve amended agreement contingent on resolution of shelving design issues to the satisfaction ofthe City and National Guard, payment to City for change orders made to Guard office as requested by the National Guard, Guard agreement to pay City for legal fees associated with this amendment. 2. Motion to deny request to amend the agreement. C. STAFF RECOMMENDATION Staff recommends Alternative 1. D. SUPPORTING DATA Summary of amendments hy Dan Greensweig Copy of Agreement 470 Pillsbury Center 200 South Sixth Street Minneapolis MN 55402 (612) 337-9300 telephone (612) 337-9310 fax http;//www.kennedy-graven.com DANIEL J. GREENSWEIG Attorney at Law Direct Dial (612) 337-9231 Ernail: dgreensweig@kennedy-gravcn.com March 10, 2000 Jeff O'Neill Deputy Administrator City of Monticello 250 E. Broadway Monticello, MN 55362 VIA FACSIMILE and MESSENGER . Dear Jeff: Enclosed is the agreement between the city and the armory commission we discussed by telephone. At the outset let me emphasize that this agreement is merely intended to restructure the original agreement to facilitate the commission's attempt to obtain additional federal funding. Apparently, the federal govenunent is used to a different format and will be more likely to fund under the new document. It is not meant in any way to change any terms of the original deal, as made clear in Article IX. The only substantive change is that the new agreement will tenninate in 2050 instead of being for an indefinite term, but the original ability to terminate ifboth parties agree still exists. Otherwise, the only noticeable changes are some inconsequential modifications to terminology and the deletion of the language pertaining to construction. Because this new agreement would not take effect until a certificate of occupancy has been issued for the entire facility, which will presumably occur when construction is complete, there is no need to set forth how the construction will occur. Furthermore, to the extent that there are any remaining issues, Article IX of the new agreement assumes that they will be addressed as under the previous document. I also spoke with a National Guard representative about the other items that we discussed yesterday. As to the shelving issue, he was surprised that it was still a problem and said he would do his best to settle it with the commission's architect unless there were regulations that prohibit using the current shelves. , Secondly, he was unaware of the change order matter and will look into it. Although I may be ignorant of the details of the situation, the original agreement is clear that the party requesting a DJG-177378vl MN190-78 . . I Jeff O'N eill March 10, 2000 Page 2 of2 change from the approved construction plans is responsible for paying and resulting costs. I am therefore hopeful that this will be a simple matter to resolve. Finally, I raised the question of payment of costs of preparing the new agreement in light of the commission's request that it be done so it could obtain more federal funding. He will check on this issue and respond. I should note that the commission prepared an original proposal for our review but that it quickly became clear that it would be more efficient to work off of the existing agreement in our firm's system than to try to mark up a completely new document. My recommendations to the council is that it approve the new agreement as it will substantially benefit the commission and have virtually no effect on the City. Failure to approve it on the other hand, will have serious financial consequences for the commission, and though the City would face little or no legal repercussions from this, it could cause practice problems if the commission's cooperation was desired in another matter in the future. The final decision, of course, is up to the council. I recommend that the council consider approving the agreement to further nonmaterial changes, in case there is any minor stylistic clean up to the document required before execution. If the council does approve the new agreement, it may wish to do so contingent on resolution ofthe shelving, change order, and attorneys fees issues. If so, the council should consider delegating approval of these three matters to the signers of the agreement, namely the administrators and the managers. The commission is greatly concerned that waiting an additional two weeks to execute the agreement will jeopardize its funding and I am optimistic that we can address to these other questions very quickly. If you have any questions or need any additional information, please let me know. Very truly yours, ~.l., . /1 -4' ~ ~~4'f'Il/~ Daniel J. Greensweig ~ Cc: Dennis Dalen (w/encl) DJG:hpw DJG-177378vl MN 1 90-78 . . I LEASE AND OPERATING USE AGREEMENT By and Between CITY OF MONTICELLO, MINNESOTA and MINNESOTA STATE ARMORY BUILDING COMMISSION Dated as of: , 2000 This document was drafted by: KENNEDY & GRAVEN, CHARTERED 470 Pillsbury Center 200 South Sixth Street Minneapolis, Minnesota 55402 Telephone: 337-9300 . . I LEASE AND PROPERTY USE AGREEMENT This Lease and Operating Agreement is made this _ day of , 2000, by and between THE CITY OF MONTICELLO, a municipal corporation under the laws of Minnesota (the "City") and the MINNESOTA STATE ARMORY BUILDING COMMISSION, a public corporation under the laws of Minnesota (the "Commission"). WITNESSETH: WHEREAS, a multipurpose facility has been constructed on a site within the City (the "Property"); and WHEREAS, the City and the Commission desire to enter into an agreement whereby the Commission can operate a National Guard armory facility on the Property and the City can operate a city hall, community center, and aquatics facility on the Property. NOW, THEREFORE, in consideration of the promises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: DJG-171947vl MN190-78 2 . . , ARTICLE I Definitions Section 1.1. Definitions. In this Agreement, unless a different meaning clearly appears from the context: "Agreement" means this Agreement, as the same may be from time to time modified, amended, or supplemented. "Annory" means the portion of the Project to be so designated on the Construction Plans. "Authority" means the Housing and Redevelopment Authority in and for the City of Monticello, Minnesota. "Bond Documents" means the lease, ground lease, indenture, and any other documents deemed necessary or desirable by the Authority for the issuance of the Bonds. "Bonds" means the lease revenue bonds to be sold by the Authority for the purpose of partially financing the Project and any bonds sold to refinance the Bonds or otherwise replace the Bonds. "City" means the City of Monticello, Minnesota. "City Facilities" means the portion of the Project to be so designated on the Construction Plans. "City Property Right of First Refusal" means the right of first refusal on Parcel 1 granted by the City to the Commission pursuant to the document recorded with the County as document number "Commission" means the Minnesota State Armory Building Commission. "Commission Property Right of First Refusal" means the right of first refusal on Parcel 2 granted by the Commission to the City pursuant to the document recorded with the County as document number "Construction Plans" means the plans, specifications, drawings, and related documents pertaining to the project as approved by and on time with the parties as of the date of this Agreement. "County" means Wright County, Minnesota. "Development Agreement" means the development agreement by and between the DJG-171947vl MN190-78 3 . . I City and the Commission and dated as of , 1998. "Event of Default" means an action listed in Article vn of this Agreement "Maturity Date" means the date that the Bonds have been paid in full, redeemed, or defeased. "Parcell" means the real property described on which the City Facilities and the Shared Facilities will be constructed. After construction of the Project, the term means Parcel 1 as so improved. "Parcel 2" means the real property on which the Armory will be constructed. After construction of the Project, the term means Parcel 2 as so improved. "Premises" means the second floor of the Armory. "Project" means construction of a building consisting of a National Guard armory, a city hall, an aquatics facility, a senior center, a gymnasium, meeting rooms, a parking lot, and related facilities, all as shown on the Construction Plans, and is comprised of the Armory, the City Facilities, and the Shared Facilities. "Property" means the real property comprised of Parcell and Parcel 2. "Shared Facilities" means the portion of the Project to be so designated on the Construction Plans. "State" means the State of Minnesota. DJG-171947vl MN190-78 4 . . I ARTICLE II Revresentations and Warranties Section 2.1. Representations bv the City. The City represents and warrants that it has the power to enter into this Agreement and carry out its obligations hereunder and has taken all action necessary to do so. Section 2.2. Representations and Warranties bv the Commission. The Commission represents and warrants that it has the power to enter into this Agreement and carry out its obligations hereunder and has taken all action necessary to do so. DJG-171947vl MN190-78 5 . . I ARTICLE ill Status and Use of Propertv: Consideration: Tenn Section 3.1. Status of the Property. (a) As of the Effective Date of this Agreement, Parcel 1 is owned in fee title by the City and Parcel 2 is owned in fee title by the Commission. Section 3.2. Environmental and Soil Investigation and Conditions. (a) Except as described in the report dated September, 1998 and prepared for the City (the "Environmental Report"), the contents of which the Commission may rely upon, each party acknowledges that the other party makes no representations or warranties as to the condition of the soils on the Property or its fitness for construction of the Project, or any part thereof, or any other purpose for which the parties may make use of the Property. (b) Each party agrees that it will protect, indemnify, defend, and hold harmless the other party, and its governing body members, officers, agent.., and employees, and the Authority and its governing body members, officers, agents, and employees, from any claims or actions arising out of the presence, if any, of hazardous wastes or pollutants on the Property to the extent that such presence is caused by the intentional or negligent actions or failures to act of the indemnifying party. To the extent that such presence is caused by the acts of or failures to act by third parties, the City and the Commission shall cooperate with each other in any efforts to pursue recovery from such third parties and shall each pay an equal share of any remediation not paid by persons not a party to this Agreement, provided that the parties shall jointly and severally protect, indemnify, defend, and hold harmless the Authority and its governing body members, officers, agents, and employees from claims and actions arising from the presence of hazardous wastes or pollutants on the Property and caused by the acts of or failures to act by third parties. Notwithstanding the foregoing, the City shall protect, indemnify, defend, and hold harmless the Commission from any claims or actions arising from hazardous wastes or pollutant.. described in the Environmental Report. Section 3.3. Lease of Shared Facilities. (a) The City shall at all times have sole ownership, use, and control of the City Facilities. (b) The Commission shall at all times have sole ownership, use, and control of the Armory, except that control of the Premises is subject to the terms of the Lease. (c) Use of the Shared Facilities shall be in accordance with the following terms and conditions: (i) The Commission shall, on or before June 15 of every year provide the City with a list of days during the October through September immediately next on which the Commission shall use the Shared Facilities. In no case shall this list include more than 30 days in any calendar year. On DJG.171947vl MN190-78 6 . . I those days included on such list, the Commission shall be entitled to sole use and control of the Shared Facilities, provided that it may in its discretion pennit the City to also use the Shared Facilities on such days. In addition, and without limitation of the foregoing, the Commission shall be entitled to sole use and control of the Shared Facilities at any time in the event that any emergency declared by proper authority arises which shall make necessary the use of the Shared Facilities by the military forces of the State; provided further, that the Commission shall have no liability to the City for damages arising from ouster or other exclusion of the City from the Shared Facilities by the Commission during such an emergency. (ii) The City shall be entitled to sole use and control of the Shared Facilities on all days on which the Commission is not entitled to use and control of the Shared Facilities pursuant to Section 3.3(c)(i). (Hi) During any day on which the City is entitled to sole use and control of the Shared Facilities pursuant to Section 3.3(c)(ii), or when otherwise pem1itted by the Commission, the City may rent or lease the Shared Facilities to any person for a period not to exceed 31 days and shall be entitled to all lease or rental payments from such person. (iv) At such times that the Shared Facilities are not being used by the City, or its tenants or lessees pursuant to Section 3.3(iii) and the Commission is not otherwise entitled to use the Shared Facilities, the Commission may, upon notice to the city, use the Shared Facilities for meetings, tours, and other similar activities, provided that such use is on an occasional, intennittent basis and the City, in its sole discretion, does not detennine that such use interferes with its sole use and control of the Shared Facilities. (v) Nothing in this Agreement shall be construed as in any way limiting the City's ownership of Parcel 2 or the Shared Facilities, which shall remain in fee title ownership by the City, except that the Commission may use and control the Shared Facilities to the extent and only to the extent set forth in this Section 3.3(c). Section 3.4. Parking Agreement. (a) The parties to this Agreement have, prior to the date of this Agreement, executed the Parking Easement. Nothing in this Agreement is intended to modify any term, right, or obligation of the Parking Easement. (b) In addition to the rights of the Commission and the City pursuant to the Parking Easement, the Commission shall have the following parking rights at all times that the Commission or any other agency or department of the State is a party to this Agreement: (i) The Commission shall have the right to store up to five High Mobility Multi-purpose Wheeled Vehicles ("Humvees") or similar DJG.171947vl MNI90-78 7 . . , military vehicles on the parking facilities on the Property (or at another place mutually agreed to in writing by the City and the Commission) at a place and in a manner reasonably satisfactory to the City and the Commission and to be described in appropriate writings or drawings, the terms of which shall be deemed incorporated herein upon their approval by the City and the Commission. The Commission shall have the right to secure such area in a manner consistent with federal regulations. (ii) The Commission shall, at all times that it is entitled to use the Shared Facilities pursuant to Section 3.3(c)(i) of this Agreement, be entitled to the nonexclusive use of the parking facilities to be constructed on the Property as part of construction of the Project for the parking of personal vehicles and other vehicles related to the activities occurring at the Shared Facilities at the time of the Commission's use of the Shared Facilities use pursuant to Section 3.3(c)(i) of this Agreement. Section 3.5. Consideration. In consideration of the obligations hereunder, and in addition to the mutual promises and obligations contained herein, the City has undertaken construction of the Project pursuant to the Development Agreement and the Commission has paid $1,500,000 to the City, receipt of which is hereby acknowledged. Section 3.6. Term. This Agreement shall terminate as of 11 :59 p.m. on December 31, 2050, unless earlier terminated pursuant to its terms. DJG-171947vl MN190.78 8 . . . ARTICLE IV Insurance and Condemnation Section 4.1. Insurance. (a) At all times prior to the Maturity Date, the parties shall carry and maintain casualty, public liability, property damage, workers compensation, and other insurance with respect to the Property and the Project in such amounts and in such fonns as may be set forth in the Bond Documents. In addition, each party shall comply with any and all requirements in the Bond Documents regarding the use or uses of proceeds from such insurance. (b) Nothing in this Section 4.1 shall be construed as prohibiting either party from self-insuring to the fullest extent pennitted by law, subject to any contrary requirements set forth in the Bond Documents. Section 4.2. Condemnation. At all times prior to the Maturity Date, any awards in condemnation shall paid and used as set forth in the Bond Documents, except that this Section 5.2 shall not limit the rights of the City as to the Commission or the Commission as to the City if one party to this Agreement initiates condemnation proceedings against the other. DJG-171947vl MN190- 78 9 . . . ARTICLE V Operations and Maintenance Section 5.1. Maintenance and Repairs. (a) The City shall be responsible, at its own expense, for the following routine repair, reconstruction, and maintenance of the exterior and interior of the Project (except those parts of the Annory that the Commission does not make accessible to the City), such repair and maintenance to maintain the Shared Facilities and the portions of the Annory accessible to the City for these purposes in a condition at least equal to the condition in which the City Facilities are maintained: (i) janitorial and cleaning services, provided that the Commission shall return the Shared Facilities to reasonably good condition after using them; (ii) light bulb replacement, painting, minor carpentry and masonry, and similar tasks. (b) Each party shall be responsible for the cost of any repairs or maintenance required by that party's negligence or misconduct. (c) Each party acknowledges and agrees that certain nonroutine maintenance and capital repairs, including but not limited to roof repairs, mechanical repairs, and plumbing and wiring repairs will be necessary to maintain the Project in a serviceable and desirable condition. Any repair or reconstruction of the Project estimated to cost more than $5,000 (the "Major Repair Amount") shall be deemed nonroutine maintenance or capital repairs for purposes of this Section 5. I (c). (The Major Repair Amount shall be increased, on the date five years after the date of this Agreement and on each five~year anniversary date thereafter, by an amount equal to the increase in the Consumer Price Index ("CP!"). The cpr shall mean the "Consumer Price Index - for All Urban Consumers, Minneapolis Metropolitan Area, All Items (1967 = 100)" as published by the United States Department of Labor Statistics, or if such index shall be discontinued, the successor index, or if there shall be no successor index, such comparable index as mutually agreed upon by the parties. To determine the increase to be calculated under this Section 5.1 (c), the Major Repair Amount in effect during the preceding five year period shall be multiplied by a percentage figure, computed from a fraction, the numerator of which shall be the cpr for the third quarter of the preceding year and the denominator of which shall be the cpr for the third quarter of the year five years earlier. Such fraction shall be converted to a percentage equivalent.) Each party therefore agrees that such nonroutine maintenance and capital repairs will be undertaken upon the earliest of the following: (i) as required by the Bond Documents; (ii) by mutual agreement of the parties; (iii) when required by federal, state, or local law, rule, or regulation; or (iv) when deemed reasonably necessary for the continued OCCupancy and protection of the Project by at least two persons determined by the City, the Commission, or jointly to be qualified in making the repair or reconstruction in question. The Commission shall pay 10% of the cost of all nonroutine maintenance or capital repairs and the City shall pay 90% of the cost of all nonroutine maintenance or capital repairs. DJG-171947vl MNI90.78 10 . . . Section 5.2. Grounds Maintenance and Landscaoing: Snow Removal. The City shall be responsible, at its own expense, for maintenance of the grounds and landscaping of the Property and for removal of snow from all parking lots, sidewalks, and other appropriate areas of the Property. Section 5.3. Utilities. (a) The City shall be responsible, at its own expense, for providing or contracting for gas, water, sewer, air conditioning, and solid waste hauling. (b) The City shall be responsible, at its own expense, for providing electrical service to the City Facilities and the Shared Facilities and for all charges related thereto. (c) The Commission shall be responsible, at its own expense, for providing electrical service to the Armory and for all charges related thereto. (d) The City may, but is not required to, provide telephone, cable television, satellite hook-ups, and other communications services to the City Facilities, the Shared Facilities, and the Premises, at its own expense. (e) The Commission may, but is not required to, provide telephone, cable television, satellite hook-ups, and other communication services to the Annory Facilities (except the Premises) at its own expense. (f) If either party uses the other party's telephone, satellite hook-ups or other communication services, it shall first gain consent and shall pay the incremental cost of such use. Section 5.4. Fumishincs. (a) The City shall be responsible for furnishing and supplying the City Facilities and the Shared Facilities and shall have sole use and ownership of such furnishings and supplies, provided that the Commission may acquire furnishings or supplies for the Shared Facilities and shall have sole use and ownership of such furnishings and supplies. (b) The Commission shall be responsible for furnishing and supplying the Armory and shall have sole use and ownership of such furnishings and supplies, except that the City shall be responsible for furnishing and supplying the Premises during the term of the Lease. Section 5.5. Payment of Taxes: Special Assessments. The City and the Commission agree that if all or a portion of the Property or the Project at any time becomes subject to real estate taxes or special assessments, such taxes and assessments, shall be allocated between the City and the Commission in the following manner: (a) Subject to the provisions of Minnesota Statutes, Section 435.19, subd. 2, all real estate taxes and special assessments properly assessed against or otherwise attributable to the Annory shall be paid by the Commission. DJG-171947vl MN190-78 11 . . . (b) All real estate taxes and specials assessments properly assessed against or othelWise attributable to the City Facilities shall be paid by the City. (c) All real estate taxes and special assessments properly assessed against or othelWise attributable to the Shared Facilities shall be paid by the City and the Commission in the following proportions: and (i) Ten percent (10%) of such taxes shall be paid by the Commission; (ii) Ninety percent (90%) shall be paid by the City. (d) Notwithstanding the foregoing, if real estate taxes are assessed against all or a portion of the property or the Project because of the activities of a party to this Agreement or its successors or assigns, the responsible party shall be solely responsible for such taxes. Section 5.6. Renc!.!otiation of Operating A!.!reement. (a) Upon the earlier of (i) five (5) years of the date of this Agreement or (ii) the Maturity Date, and at five (5) year intervals thereafter, the City and the Commission shall enter into negotiations concerning an operating agreement intended to extend or amend the provisions of this Article V, such agreement to include at least the matters set forth in this Article V and to incorporate and allocate extraordinary costs not reasonably anticipated as of the date of this Agreement. (b) The terms, conditions, rights, and responsibilities set forth in this Article V may not be waived, terminated, amended, or superseded prior to the Maturity Date without the express written consent of the Authority. (c) The provisions of this Article V shall survive until the earlier of the termination of this Agreement or, subject to Section 5.6(b), until the complction of the renegotiation called for in Section 5.6(a), provided that nothing herein shall limit the obligations of the parties to enter into such renegotiation in good faith. DJG-171947vl MN190-78 12 . . . ARTICLE VI Prohibitions Alminst Asshmment and Transfer; Indemnification Section 6.1. Prohibition Against Transfer and Assignment Prior to Maturitv Date. Prior to the Maturity Date, neither party has made or created nor shall make or create or suffer to be made or created any total or partial sale, assignment, conveyance, or lease (except the State of Minnesota, Department of Military Mfairs, provided that such transferee or assignee shall be bound by this Agreement) or any trust or power, or transfer in any other mode or form of or with respect to the Agreement or the Property or the Project or any part thereof or any interest therein, or any contract or agreement to do any of the same, without the prior written approval of the other party and the Authority. Section 6.2. Conditions Of Transfer and Assignment Subsequent to Maturitv Date. Subsequent to the Maturity Date, the City may sell, assign, convey, or lease Parcell and the Commission may sell, assign, convey, or lease Parcel 2 and the improvements thereon subject to the following terms and conditions: (a) Any such sale, assignment, conveyance, or lease (except a lease or rental of not more than 31 days) is subject to the rights of first refusal set forth in the City Property Right of First Refusal and the Commission Property Right of First Refusal (individually, each a "Right of First Refusal" and collectively, the "Rights of First Refusal"). (h) If the other party to this Agreement does not exercise its rights under the applicable Right of First Refusal, a party to this Agreement may sell, assign, convey, or lease all or part of its interest in the Property in accordance with the provisions of the Rights of First Refusal; provided, however, the terms of this Agreement shall remain binding on the successor or assignee of the transferring party. Section 6.3. Right.'\ of First Refusal. Prior to the date of this Agreement, the City and the Commission executed the Rights of First Refusal. Nothing in this Agreement shall he construed to modify either or hoth of the Rights of First Refusal. Section 6.4. Release and Indemnification. In addition to any other release and indemnification provisions set forth in this Agreement: (a) The parties to this Agreement agree, now and forever, to indemnify, protect, and defend each other, and the governing body members, officers, agents, servants and employees thereof, now or forever, and hold the aforesaid harmless from any claim, demand, suit, action or other proceeding by any person or entity arising or purportedly arising from the act or failure to act by the indemnifying party with regard to this Agreement, the Project, or the Property; provided, however, that nothing in this Agreement shall be construed to waive any limitations on liability to which the City or the Commission arc entitled under Minnesota Statutes, Chapter 3, or Chapter 466, or otherwise, except as between each other; and provided further, that nothing in this Section 6.4(a) shall be DJG-171947vl MN190-78 13 . . . construed to create any right or entitlement in any person not a party to this Agreement, except as to the Authority as provided in Section 6.4(b)_ The obligations set forth in this Section 6.4(a) shall survive termination of this Agreement. (b) The City and the Commission, respectively, agree, now and forever, to indemnify, protect, and defend the Authority, and the governing body members, officers, agents, servants and employees thereof, now or forever, and hold the aforesaid harmless from any claim, demand, suit, action or other proceeding by any person or entity arising or purportedly arising from any act or failure to act by the City or the Authority, respectively, with regard to this Agreement, the Project, or the Property; provided, however, that nothing in this Section 6.4(b) shall be construed to waive any limitations on liability to which the City or the Commission are entitled under Minnesota Statutes, Chapter 3, Chapter 466, or otherwise, except as to the Authority; and provided further, that nothing in this Agreement shall be construed to create any right or entitlement in any person not a party to this Agreement, except as to the Authority as provided in this Section 6.4(b). The obligations set forth in this Section 6.4(b) shall survi ve termination of this Agreement. DJG-171947vl MN190-78 14 . . . ARTICLE vn Events of Default Section 7.1. Events of Default Defined. The following shall be "Events of Default" under this Agreement and the term "Event of Default" shall mean, whenever it is used in this Agreement (unless the context otherwise provides), any failure by any party to observe or perform any other covenant, condition, obligation, or agreement on its part to be observed or performed hereunder. Section 7.2. Remedies on Default. Whenever any Event of Default referred to in Section 7.1 of this Agreement occurs, the non-defaulting party may exercise its rights under this Section 7.2 after providing thirty days' written notice to the defaulting party of the Event of Default, but only subject to Section 8.8(b) of this Agreement and only if the Event of Default has not been cured within said thirty days or, if the Event of Default is by its nature incurable within thirty days, the defaulting party does not provide assurances rea.,<;onably satisfactory to the non-defaulting party that the Event of Default will be cured and will be cured as soon a.,<; reasonably possible: (a) suspend its performance under this Agreement until it receives assurances that the defaulting party will cure its default and continue its performance under this Agreement; and (b) take whatever action, including legal, equitable or administrative action, which may appear necessary or desirable to collect any payments due under this Agreement, or to enforce performance and observance of any obligation, agreement, or covenant under this Agreement. Section 7.3. No Remedv Exclusive. No remedy herein conferred upon or reserved to the City or the Commission in this Agreement is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. In order to entitle either party to exercise any remedy reserved to it, it shall not be necessary to give notice, other than such notice as may be required in this Article VII. Section 7.4. No Additional Waiver Implied bv One Waiver. In the event any agreement contained in this Agreement should be breached by either party and thereafter waived by the other party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other concurrent, previous or subsequent breach hereunder. DJG-171947vl MN190-78 15 . . . ARTICLE vm Additional Provisions Section 8.1. Conflict of Interests: City and Commission Representatives Not Individuallv Liable. The City and the Commission, to the best of their respective knowledge, represent and agree that no member, official, or employee of the City or the Commission shall have any unlawful personal interest, direct or indirect, in this Agreement, nor shall any such member, official, or employee unlawfully participate in any decision relating to this Agreement which affects his or her personal interests or the interests of any corporation, partnership, or association in which he or she is, directly or indirectly, interested. No member, official, or employee of the City or the Commission shall be personally liable in the event of any default or breach by the City or the Commission or for any amount which may become due to any person or on any obligations under the terms of this Agreement. Section 8.2. Lease of Armory Soace. (a) Pursuant to the terms and conditions of this Section 8.2 (the "Lease"), the City shall lease from the Commission and have exclusive possession of the Premises. (b) The City shall pay to the Commission an annual rent of $1.00, payable in advance on or before January 1 of each year this Lease is in effect. (c) The Lease shall be for a period of one year and shall remain in effect on a yearly basis, provided that the City may terminate the Lease at any time and for any reason, or for no reason at all, by providing the Commission with 90 days advance written notice. (d) The City may use the Premises for any purpose reasonably related to the City's normal operations. (e) The City may, at its sole discretion (subject only to a right of first refusal identical in terms to the City Property Right of First Refusal), lease, assign, sell, or otherwise transfer its interest in the Lease to any person. (e) Except for the Commission's rights under this Section 8.2, the Premises shall, during the term of the Lease, be considered and treated in all other regards in the same manner as the remainder of the City Facilities for the purposes of this Agreement, and the City's responsibilities for the Premises shall be the same for the Premises as it is for the remainder of the City Facilities. (1) Notwithstanding anything to the contrary contained in this Agreement, and not in limitation of any other provision of this Agreement, this Section 8.2 shall survive any termination of this Agreement and shall be binding on the Commission's successors and assigns. DJG.171947vl MNJ90-78 16 . . . Section 8.3. Provisions Not Merged With Deed. None of the provisions of this Agreement are intended to or shall be merged by reason of any deed transferring any interest in the Property and any such deed shall not be deemed to affect or impair the provisions and covenants of this Agreement. Section 8.4. Titles of Articles and Sections. Any titles of the several parts, Articles, and Sections of this Agreement are inserted for convenience of reference only and shall be disregarded in construing or interpreting any of its provisions. Section 8.5. Notices and Demands. Except as otherwise expressly provided in this Agreement, a notice, demand, or other communication under this Agreement by either party to the other shall be sufficiently given or delivered if it is dispatched by registered or certified mail, postage prepaid, return receipt requested, or delivered personally; and (a) in the case of the Commission, is addressed to or delivered personally to the Commission at 20 West 12th Street, Saint Paul, MN 55155-2098; and (b) in the case of the City, is addressed to or delivered personally to the City at City Hall, P.o. Box 1147, Monticello, MN 55362-9245, Attn: City Administrator; or at such other address with respect to either such party as that party may, from time to time, designate in writing and forward to the other as provided in this Section. (c) Prior to the Maturity Date, any notice given or delivered under this Agreement shall be copied to the Authority at: City Hall, P.O. Box 1147, Monticello, MN 55362-9245, Attn: Executive Director. Section 8.6. Countemarts. This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same instrument. Section 8.7. Recording. The City shall record this Agreement and any amendments thereto with the Wright County recorder. The City and the Commission shall each pay one- half the cost for recording. Section 8.8. Choice of Law and Venue; Alternative Dispute Resolution. (a) This Agreement shall be governed by and construed in accordance with the laws of the state of Minnesota. Any disputes, controversies, or claims arising out of this Agreement shall be heard in the state or federal courts of Minnesota, and all parties to this Agreement waive any objection to the jurisdiction of these courts, whether based on convenience or otherwise. (b) Prior to the commencement by one party of litigation against the other party, the City and the Commission shall follow the process set forth in this Section 8.8(b): (i) The City Administrator and the commanding officer stationed at the Armory shall attempt in good faith to resolve any controversy or claim DJG-171947vl MN190-78 17 . . . arising out of or relating to this Agreement. (ii) If the City Administrator and the commanding officer stationed at the Armory are unable to resolve the controversy or claim, the disputing party shall give the other party written notice of the dispute. Within twenty days after receipt of said notice, the receiving party shall submit to the other a written response. The notice and response shall include a statement of each party's position and a summary of the evidence and arguments supporting its position. Representatives of the parties shall meet at a mutually acceptable time and place within thirty days of the date of the disputing party's notice and thereafter as often as they reasonably deem necessary to exchange relevant information and to attempt to resolve the dispute. (iii) If the matter has not been resolved within sixty days of the disputing party's notice, or if the party receiving said notice will not meet within thirty days, either party may initiate mediation of the controversy or claim in accordance with any mutually satisfactory procedures. (iv) If the matter ha..'\ not been resolved pursuant to the aforesaid mediation procedure within sixty days of the initiation of such procedure, or if either party will not participate in mediation, the parties may mutually agree to continue negotiations or either party may commence litigation or take any other action permitted under of this Agreement. (v) The procedures specified in this section shall he the sole and exclusive procedures for the resolution of disputes between the parties arising out of or relating to this agreement; provided, however, that a party may seek a preliminary injunction or other preliminary jUdicial relief if in its judgment such action is necessary to avoid irreparable damage. Despite such action the parties will continue to participate in good faith in the procedures specified in this section. All applicable statutes of limitation shall be tolled while the procedures specified in this section are pending. The parties will take such action, if any, required to effectuate such tolling. (vi) Nothing in this Section 8.8(h) shall be construed as binding on the Authority, which may at any time commence litigation or take any other action it deems necessary to protect its rights under this Agreement, including without limitation the rights set forth at Section 8.9. Section 8.9. Third-Partv Rights. Nothing in this Agreement shall he construed to create any third-party rights in any person not a party to the Agreement; provided, however, that the Authority shall, at all times prior to the Maturity Date, have the right, but not the obligation, to enforce any right or obligation granted to either party pursuant to this Agreement, the Rights of First Refusal, or any other agreement between the City and the Commission relating to the Project or the Property. The City and the Commission hereby agree that they may not in any way waive, limit, an1end, modify, or eliminate the Authority's DJG-171947vl MN190-78 18 . . . rights under this Agreement without the express written consent of the Authority. Section 8.10. Amendment and Termination of Agreement. (a) During the period commencing on the earlier of the date the Authority authorizes issuance of the Bonds or the date on which the City acquires any part of the Property, and terminating on the Maturity Date, this Agreement may not be terminated, amended, or modified without the mutual written agreement of the parties and the written approval of the Authority. (b) Subsequent to the Maturity Date, this Agreement may be modified or terminated only upon the written agreement of the parties. Section 8.11. Severability. Any term or provision of this Agreement which is found to be invalid or unenforceable by a court or other authority of competent jurisdiction will be ineffective only to the extent of such invalidity or unenforceability and shall not render any other term or provision of this Agreement invalid or unenforceable. Section 8.12. Effective Date. This Agreement shall be effective upon the date on which the entire Project has been certified for occupancy by the City's building official. DJG-171947vl MN190-78 19 . . . Article IX Prior Ae:reements Section 9.1. Prior Agreements. Notwithstanding anything to the contrary in this Agreement, nothing in this Agreement shall modify any term of the Development Agreement, and in the case of any apparent or actual conflict between the terms of this Agreement, and the Development Agreement, the Development Agreement shall prevail. DJG~171947vl MN190-78 20 . . . IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed on or as of the date ftrst above written. CITY OF MONTICELLO, MINNESOTA By Its Mayor By Its City Administrator STATE OF MINNESOTA ) ) ss. COUNlY OF WRIGHT ) The foregoing instrument was acknowledged before me this day of , 2000 by and the Mayor and City Administrator of the City of Monticello, Minnesota, on behalf of the City. Notary Public DJG-)71947vl MN190-78 21 . . . MINNESOTA STATE ARMORY BUILDING COMMISSION By Its By Its STATE OF MINNESOTA ) ) ss. COUNTY OF ) The foregoing instrument was acknowledged before me this _ day of 2000, _ by and , the and of the Minnesota State Armory Building Commission. Notary Public DJG-171947vl MN190-78 22 . . . EXHIBIT A PROPERTY Parcel 1 NEED LEGAL DESCRIPTION Parcel 2 NEED LEGAL DESCRIPTION DJG.171947vl MNI90.78 23 . Council Agenda - 3/13/00 7. Consideration of authorization to prepare plans and specifications for the pedestrian overpass and oathwav project (Project 98-02C) (RW) A. REFERENCE AND BACKGROUND: The purpose ofthis itcm is to consider authorizing the City Engineer to begin preparation of final plans and specifications for the construction of the County Road 18 pedestrian overpass bridge and pathway project. The project would entail the construction of a pedestrian overpass bridge and construction of a connecting pathway from the existing CSAH 75 pathway across 1-94 to the School Boulevard pathway, then easterly to the Meadow Oaks, Briar Oakes, Eastwood Knoll, and Parkside subdivisions. This pathway project is a major component of the trail system linking the original ISTEA pathway along CSAH 75 to newly developed residential and school campus areas. The City has received approval of federal ISTEA grant funds ($389,000) covering 80% of the original estimated $486,00 construction costs. Total construction costs do not cover the cost of engineering and other fees associated with casements and these costs would be the responsibility of the City which netted an original cost to the city of $204,000. Sincc the time of the original grant application (1997), the construction costs have increased and are now estimated at $620,000 with $400,000 being for the bridge and $220,000 for the pathway. The City's share of the total including engineering fees has increased from $204,000 to $264,000 without the cost of pathway easements. The use of the federal grant funds require that plans be approved by October 1, 2000, although construction could begin as late as summer of 200 1. . It was originally anticipated that the City's share of the project would be financed by previous budget contributions ($45,000) plus revenue from a future bond sale to be financed over ten or fifteen years. We have recently found out that it cannot be included in other 429 projects unless we assess at least 20% of our costs to benefitting property owners. No additional funding was included in our 2000 year budget and theref()fe if the project is to continue, the Council should indicate where the source of revenue will come from for this project. There currently is in reserve suHicient funds to cover the city share if the Council wanted to reallocate a portion of the reserves for this project. To fund this expense over time, the city could borrow from itself and pay back the principle over time with revenue derived from an annual tax levy. . As noted earlier, the total construction cost is estimated at $620,000 and engineering fees, construction services and other miscellaneous costs were estimated at $140,000 for a total project cost of $760,000. If the federal grant is increased to cover 80% of the new construction costs, our engineer estimates the City's cost of this project would be $264,000. To this cost we need to add the pathway easements we were rcquired by the County to purchase from Resurrection Lutheran Church along County Road 18 that totaled $26,160 plus any additional pathway easements that may be necessary from Dahlheimer Distributing, Charlie Pfeffer's property. Resurrection Church and the School District have indicated they will grant the easements at no charge. More information on possible casement costs associatcd with the Dahlhcimer and Pheffer property will be available at the meeting. According to our City Engineer, it has been the past practice of the ISTEA program to increase the grant funds to equal 80% of the actual eligi ble construction costs which we estimate would require federal grants of $496,000 (801% of $620,000). To date we have only received approval for federal grants totaling $389,000. . Council Agenda - 3/13/00 Although there is no guarantee that the federal grant will be automatically increased, we have received word from Kelvin l-lowison, District I II State Aid Engineer that funds should be available to cover the increase. Iffederal grants are not increased, the City would be responsible for the additional $107,000 in construction costs. The City's portion of this project could mnount to $290,000 plus additional pathway easement costs and any additional construction dollars not included in the grant. With construction beginning yet this fall or possibly bidding the project in the winter of 200 1 with construction next summcr, Council could proceed with the plans and specifications with the City's share budgeted for in the 2001 budget. lfthe Council does not wish to add the projected cost to next ycar's budget, and the project is to proceed, the other source would be to take the funding from existing reserves. Funds arc available in the capital outlay fund but these funds have been previously earmarkcd for other projects. If the Council wishes to use reserve funds rather than consider budgeting for this cost next year, we should determine which projects will be deleted from the capital outlay fund in the future so that these funds are not counted on by various departments. It should also be noted that $45,000 was budgeted in 1996, 1997 and 1998 towards the eventual construction of this project. Also, the Briar Oakes development contributed funds via assessment to build this pathway along its northern border, so additional resources may only be needed for approximately $245,000 plus any additional easement cost or increase in construction costs. The Council may want to consider funding this projcct by using partial reserves and adding the balance needed to the 2001 budget. Capital outlay items that have been budgeted for in the capital outlay fund that have not yet been spent include $80,000 for River Park enhancements that have not specifically been identified yet and some funds arc still available from the 1998 Klein Farms park improvement budget. . The project budget as outlined by the City Engineer identifies engineering design and construction services along with miscellaneous services totaling an estimated $136,000 which amounts to a proposed estimated 12% for design services and 10% for inspection/survey services. If this project was designed under our current engineering agreement for projects of average complexity, the design fee would be in the 6.75% to 7% range rather than almost 12% when you include other outside services and consultants hired by the engineer. Even using the fee schedule for projects of above average complexity, the design fee would normally be around 8.25%. While I understand that there may be additional engineering fees associated with a federal project, the fee proposed is even higher than their schedule indicates for above average complexity projects. The City Engineer may have additional information to provide to the Council to support their request for fee reimbursement that is higher than our contract would normally indicate. B. AL TERNA TIVE ACTIONS: I. First alternative would be to authorize the engineer to prepare plans and specifications for the bridge and pathway project as outlined in their scope of services under the fee arrangement as requested. . "- Under this alternative the City would be responsible for approximately $290,000 of the project costs plus any additional pathway easements that may be necessary plus any additional construction costs that are not covered by the ISTEA grant (currently $107,000). Electing also with this alternative, Council should indicate what the preferred funding mechanism would be for this project, i.e. use of capital outlay reserve funds, including City's cost in next . . . Council Agenda - 3/13/00 years budget or a combination of both. 2. The Council could wait to authorize preparation of plans and specifications until it can determine whether there is additional costs for easements and whether the ISTEA funding will be increased to cover the higher construction cost estimate. According to the City Engineer, the project needs to be started as soon as possible if it is going to meet the October 1st deadline and receiving a guarantee of additional federal funding may not be able to be accomplished until the project is completed. 3. Do not authorize preparation of plans and specifications at this time. This project has been in the planning stages for years with residents in the affected subdivisions and the School District patiently waiting for completion of this bridge and pathway system designed to provide an avenue for safe travel between neighborhoods and school. This is a necessary project that if not done today due to cost will not likely be done in the future when federal dollars are not available. C. STAFF RECOMMENDATION: The reasons why the grant was approved yesterday remain true today. The pathway and trail are not luxuries but a critical link providing a safe avenue for children in an area of high traffic. If Council agrees that this is a necessary project and the cost is worth the benefit and if Council would like Federal funding to assist with development ofthis system, then a funding source needs to be identified for the City's portion. As was the case with the Highway 25 project and the County Road 75 improvement, the engineering fees proposed for this project do not appear to fall within the engineering agreement we have. If a funding source for the City's portion can be identified, it is the City Administrator's recommendation that the project plans and specifications be authorized. D. SUPPORTING DATA: . WSB, Inc. letter and scope of services proposal . List of potential capital outlay funds . . . 350 Westwood Lake Office 8441 Wayzata Boulevard Minneapolis, MN 55426 B.A. Mittelsteadt. P.E. Btet A. Weiss, P.E. Petet R. Willenbring, P.E. Donald W. Sterna, P.E. Ronald B. Bray, P.E. 612-541-4800 FAX 541-1700 February 14, 2000 Mr. Rick Wolfsteller City of Monticello 505 Walnut Street, Suite 1 Monticello, MN 55362-1147 Re: CSAH 18 Pedestrian Overpass and Pathway Project WSB Project No. 1125.00 Dear Mr. W olfsteller: Attached to this letter is our scope of services for providing final design and construction services for the pedestrian overpass and pathway project. We have also included a preliminary cost estimate for the project in the total amount of $620,000. Our scope of services describes the final design and construction services for the project. Attached to the scope of services in Exhibit A is a summary of the engineering fees for the preliminary design, environmental documentation, final design of the pathway and bridge, and construction services for full-time bridge inspection during the construction phase. The pages following the summary page in Exhibit A show more detail on how the fees were calculated. The scope of services includes additional requirements as a result of the federal grant process. These items include: · Environmental documentation · Added plan requirements and review · Federal documentation for design and construction · Full-time bridge observation Exhibit B summarizes additional services which are not included in preliminary design, final design, and construction services. These costs include items such as surveying, cultural resource survey, bridge type study, geotechnical investigation, and right-of-way exhibits and legal descriptions for property acquisition. Exhibit C is the project budget, which is a reprint of the project budget sheet used in the application for Transportation Enhancement Funding for the project. All of the numbers have been revised to take into account the revised construction estimate and the preliminary design, final design, and construction services cost associated with the project. At this time, there are no costs listed for land acquisition. Minneapolis · St. Cloud Infrastructure Engineers Planners EQUAL OPPORTUNITY EMPLCYER F:IWPWIN\112S001021400-RW.wpd l . . , Mr. Rick Wolfsteller City of Monticello February 14, 2000 Page 2 The use of the euhaueement (Federal Grant) fnnding reqnires the plans he approved by October 1,2000. Construction could begin in the fall of2000 (i.e. September) or be perfonned in the summer of2001 with a letting in the winter of2000/2001. It is imperative that the Design Snrveys and Soils Investigation (Geotechnical) be anthorized immediately in the amounts of $1,900 and $4,200 for a total of $6,1 00. The right-of-way acquisition costs are not included in the attached costs. It is anticipated that the necessary easements from the church, Dahlheimer, Pfeffer, and the school will be negotiated at little to no cost to the City. Please let me know if you have any other questions or comments. Sincerely, WSB & Associates, Inc. P1;tr/ ~ ~~tl~ JeffW. Stewart, P.E. Project Manager Bret A. Weiss, P.E. Vice President c: John Simola, City of Monticello Jeff O'Neill, City of Monticello Enclosures kdlnm F:IWPWINII11S.OO\021400.RW.",pd 1 · EXHIBIT C Project Budget CSAH 18 Pedestrian Bridge Overpass and Pathway Project Monticello, Minnesota S.P.222-090-01 Federal Project No. TEA 8600 (126) WSB Project No. 1125.00 ITEMS ELIGIBLE FOR REIl'v1BURSEMENT: Construction Item--grading, paving, etc. Bridge Pathway LINE A: TOTAL Amount $400,000.00 220,000.00 $620,000.00 ITEMS NOT ELIGIBLE FOR REIMBURSEMENT: Ineligible Land Acquisition -- appraisal fees, legal fees, etc. Land Acquisition Appraisals, legals, etc. . Line B: TOTAL Amount $0.00 3,472.00 Not Completed $3,472.00 Administrative Costs -- preliminary and construction engineering Design Services Construction Services Miscellaneous Services 1) Path Field Survey 2) Cultural Resource Survey - The 106 Group 3) Bridge Study - Wells Engineering 4) Bridge Field Survey 5) Bridge Geotechnical Line C: TOTAL Amount $62,067.13 Partially Completed 57,768.00 Not Completed 4,191.25 Completed 2,015.00 Completed 4,745.00 Completed 1,896.00 Not Completed 4,200.00 Not Completed $136,882.38 - Total cost of proposed project: LINES A, B, AND C TOTALED Items not eligible for enhancement funding: LINE B AND C TOTALS Total of eligible costs (minimum of$lOO,OOO): LINE A TOTAL Applicant's contribution towards eligible enhancement project costs (20%): .Total amount requested in enhancement funds (No.3 minus No.4): -.. Total amount contributed by applicant: $760,354.38 140,354.38 620,000.00 124,000.00 $496,000.00 $264,354.38 F:\wpwin\proposal\085 .99\CSAH ISPedPathRFP 1 of I 2/14/00 1 .......-,. EXHIBIT A WSB Design and Construction Costs CSAH 18 Pedestrian Bridge Overpass and Pathway Project Monticello, Minnesota S.P.222-090-01 Federal Project No. TEA 8600 (126) WSB Project No. 1125.00 Task Description Amount Preliminary DesignlEnvironmenta1 Documentation Pathway Design Bridge Design Subtotal Design $14,966.13 $15,895.00 $31,206.00 $62,067.13 Construction Services Bridge Overpass and Pathway $57,768.00 .", TOTAL 9 $119,835.13 .... F:\wpwin\proposal\085.99\CSAH18PedPathRFP 10f5 -" '-"------.',...,--_. --', .-. '~_. -, -. - --, ,_. ._~. 2/14/00 I . . . City Council Agenda -03/13/00 8. Consideration of a request for a conditional use permit allowing open sales as an accessory use in the B-4. Regional Business District. Applicant: Scott Rolfe. Skippers Pools & Spas. A. REFERENCE AND BACKGROUND Scott Rolfe, representing Skippers Pools and Spas, and the HRA are requesting a renewal of the conditional use permit allowing outside sales at 101 W. Broadway. As you may recall, the city granted a CUP on 5/11/98 which was intended for summer display only. Due to the fact that there has been some problems with the unauthorized use of the property for outside storage and hecause an expiration date was set, it is appropriate to require a renewal. Scott Rolfe is aware of the concerns regarding outside storage mld has indicated the he will comply with the terms of the permit in the future. The HRA has also indicated that they will monitor the use of their property. New this year is the request to fill the pools which goes against one of the previous conditions of approval. Does the Planning Commission wish to approve this request with water in the pools? See the HRA meeting minutes for information regarding this facet of the request. The Plmming Commission recommended approval of this CUP subject to the conditions below. B. ALTERNATIVE ACTIONS 1. Motion to recommend approval of the conditional use permit allowing outdoor display and sales subject to the following conditions: 1. Entering into a satisfactory lease arrangement with the HRA that includes a hold harmless and indemnification clause protecting the City against lawsuits associated with display of pools filled with water. 2. All lighting must be directed away from the public right-of-way. 3. Parking stalls must be clearly striped and marked. 4. No permanent or temporary signs shall be erected on the outdoor display. 5. Any swimming pool or spa displayed outdoors must be provided with a continuous surrounding barrier to prevent entry. 6. Outdoor swimming pool or spa displays may contain water for structural reasons. but must be securely covered during night time or non-business hours. . City Council Agenda -03/13/00 7. All items shall be removed by August 31, 2000. No outside storage allowed under this permit. 8. The conditional use permit shall be seasonal from April through August 31, 2000. Motion is based on the finding that the proposed outdoor display and sales use is connccted with thc principal use and limited to no more than 30% of the gross floor area of the principal usc; is compatible with the comprehensive plan and the geographical area and character of the surrounding area; is justified by a demonstrated need for sLlch use; and does not substantially depreciate the area in which it is proposed. If this alternative is selected, the HRA and applicant will begin developing a new lease agreement. 2. Motion to recommend denial of the conditional use permit allowing outdoor display and sales. . As you will see in the correspondence between the BRA and Rolfe, there were some problems in getting Rolfe to comply with requests to remove outside storage. Council may wish to deny the CUP based on the problems experienced in gaining compliance from Rolfe. At the Planning Commission meeting, Council Liaison Herbst indicated his concern about rcnewing the CUP given the track record. 3. Motion to table any action, pending additional information. c. STAFF RECOMMENDATION Staff recommcnds Alternati ve 1. D. SUPPORTING DATA City COLlncil agenda item of 5/11/98 Enf(Jrcement letters from lIRA re: storage Lettcr from Scott Rolfe to HRA re: outsidc storage Summary of the BRA meeting minutes from 3/1100 . . . I qq- Of d.- Council Minutes - 5/11/98 6. Consideration of items removed from the consent aeenda for discussion. 5E. Consideration of a conditional use -permit allowim! open sales as an accessory use in the B-4. Regional Business District. Location: 101 West Broadway. Lots 9 & 10. Block 52 Original Plat. Applicant: Scott Rolfe. SIqp-pers Pool's and Spas. Councilmember Brian Stumpf requested clarification of the proposal for an outdoor display and sale of swimming pool products by Skippers Pools and Spas on the HRA' s property. He noted his concern regarding issuance of a conditional use permit for a parcel that may be sold in the future. Economic Development Director Ollie Koropchak reported that the HRA's motion included a termination date of August 31, 1998, for use of the property. A MOTION WAS MADE BY BRIAN STUMPF AND SECONDED BY BRUCE THIELEN TO APPROVE THE CONDITIONAL USE PERMIT ALLOWING OUTDOOR DISPLAY AND SALES SUBJECT TO THE FOLLOWING CONDITIONS: 1. ENTERING INTO A SATISFACTORY LEASE ARRANGEMENT WITH THE BRA. 2. ALL LIGHTING MUST BE DIRECTED AWAY FROM THE PUBLIC RIGHT- OF-WAY. 3. PARKING STALLS MUST BE CLEARLY STRIPED AND MARKED. 4. NO PERMANENT OR TEMPORARY SIGNS SHALL BE ERECTED ON THE OUTDOOR DISPLAY. 5. ANY SWIMMING POOL OR SPA DISPLAYED OUTDOORS MUST BE PROVIDED WITH A CONTINUOUS SURROUNDING BARRIER TO PREVENT ENTRY. 6. OUTDOOR SWIMMING POOL OR SPA DISPLAYS MUST NOT CONTAIN ANY WATER. 7. THE CONDITIONAL USE PERMIT SHALL EXPIRE AUGUST 31, 1998. PER THE HRA. Motion is based on the finding that the proposed outdoor display and sales use is connected with the principal use and limited to no more than 30% of the gross floor area of the principal use; is compatible with the comprehensive plan and the geographical area and character of the surrounding area; is justified by a demonstrated need for such use; and does not substantially depreciate the area in which it is proposed. Motion carried unanimously. .1 December 17, 1999 MONTICELLO Scott and Amy Rolfe Skipper's Pool & Spa 101 West Broadway P.O. Box 1234 Monticello, .MN 55362 Re: Use of BRA lot on West Broadway Dear Scott and Amy: At the Housing and Redevelopment Authority meeting of December 1, 1999, the COmmissioners noted debris was being stored on the BRA lot. The Commissioners recalled the BRA granted Skipper's Pool & Spa the use of the BRA lot for display pUrposes only at no cost. The Commissioners requested the user be notified to remove the debris stored outside on their lot. . On December 10, the City Building Inspector and myself stopped by Skipper's Pool & Spa and spoke with Amy relating to removal of the debris from the BRA lot per the request of the BRA Commissioners. On a follow-up inspection of December 17, the Building Inspector and myself noted the debris still remained on the BRA lot. Per the request of the Commissioners, please remove the stored debris from the BRA lot to conform with the granted use of the property: For display purposes only. Thank you for your immediate attention of this matter. Should you have any questions, please call me at 271-3208. Respectfully, HOUSING AND REDEVELOP~ AU1RORlTY IN" AND FOR TIm CITY OF MONTICELLO, lVIINNESOT A a~ \<"'tQ ~J2~ Ollie Koropchak Executive Director . c; File Monticello City Hall. 250 E. Broadway, PO Box 1147, Monticello, MN 55362-9245. (612) 295-2711. Fax: (612) 295-4404 Office of Public Works. 909 Golf Course Rd., Monticello, MN 55362. (612) 295.3170. Fax: (612) 271-3272 ~ ,I , } January 10,2000 . ~ MONTICELLO Scott and Amy Rolfe Skipper's Pool & Spa 101 West Broadway P.O. Box 1234 Monticello, MN 55362 Re: Use ofHRA lot on West Broadway Dear Scott and Amy: After our telephone conversation of January 3, 2000, I relayed your message to the HRA Commissioners at their January 5 meeting that two trailers and dismantled display materials covered by a blue canvas remain within the fenced area of the BRA lot along West Broadway. The BRA Commissioners remain consistent with their original approval which granted Skipper's Pool & Spa the use of the BRA lot for the purpose of display only. They reaffinned their request for all stored materials to be removed from the parcel. . Should you have any questions, please call me at 271-3208. For your information the next BRA meeting is February 2,2000, 7:00 p.m. at the City Hall, 505 Walnut Street. Sincerely, HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO, MINNESOTA a ~ '\<C1\ o~~~ Ollie Koropchak Executive Director c: Planning Commission t../' File . Monticello City Hall, 250 E. Broadway. PO Box 1147, Monticello, MN 55362-9245. (612) 295-2711. Fax: (612) 295-4404 Office of Public Works. 909 Golf Course Rd.. Monticello, MN 55362. (612) 295-3170. Fax: (612) 271-3272 .# ,I , } January 10,2000 (- MI MONTICELLO Scott and Amy Rolfe Skipper's Pool & Spa 101 West Broadway P.O. Box 1234 Monticello, M:N 55362 Re: Use ofHRA lot on West Broadway Dear Scott and Amy: After our telephone conversation of January 3,2000, I relayed your message to the BRA COmmissioners at their January 5 meeting that two trailers and dismantled display materials covered by a blue canvas remain within the fenced area of the BRA lot along West Broadway. . The HRA Commissioners remain consistent with their original approval which granted Skipper's Pool & Spa the use of the HRA lot for the purpose of display only. They reaffirmed their request for all stored materials to be removed from the parcel. Should you have any questions, please call me at 271-3208. For your information the next HRA meeting is February 2,2000, 7:00 p.m. at the City Hall, 505 Walnut Street. Sincerely, HOUSING AND REDEVELOPMENT AU1HORITY IN AND FOR TIIE CITY OF MONTICELLO, MlNNESOT A o~ \<CI\o~~L~ _ Ollie Koropchak Executive Director C: Planning Commission c.-"" File , Monticello City Hall. 250 E. Broadway. PO Box 1147. Monticello. MN 55362.9245. (612) 295-2711 . Fax: (612) 295.4404 Office of Public Works. 909 Golf Course Rd.. Monticello. MN 55362. (612) 295-3170. Fax: (612) 271.3272 ..< Skipper's Pools &; Spas 101 W. Broadway P.O. Box 1234 Monticello, MN 55362 Skipper's Pools & Spas o ~~~D\',f~ n FEB 11 2000 U February 7, 2000 lIRA Office 505 Walnut Street Suite #1 Monticello, MN 55362-831 Dear Ollie: I would like to take this opportunity to say Thank You for taking the time to visit our store and bring to our attention the concerns of the lIRA Committee. At this time, I believe we have cleared the area to the satisfaction of the Commissioners. I apologize for not understanding the original use permit and hope we can continue to use the lot in the future for the same use as was originally intended I have submitted a new conditional use permit application to the City for approval and can be available for any questions the BRA or the City may have concerning this issue. Should you have any questions please call me at 295-5779 Again, Thank You and please notify me if I can be of any service to the HRA and its staff. . ~~ Scott Rolfe Owner ........................ ., . . . SKIPPER'S POOLS & SPAS HRA Motion of March 1, 2000 relative to use of the HRA lot The HRA approved a motion authorizing the lIRA Attorney to draft a Lease Agreement between Skipper's Pools & Spas (Scott and Amy Rolfe) and the BRA for the northerly portion of the parcel described as LTS 7 & 8 BLK 52 EX SEL Y 16.50 FT ofSWL Y 90 FT ofLT 8, subject to approval of the conditional use permit by the Planning COmmission and City Council. Terms of the agreement to include but not limited to: Lease rate equal to costs associated with preparation of the agreement, lease for display purposes only, 60-day right to terminate lease, indemnification ofHR.A, six-month lease with termination date as of September 1,2000, all pools filled with water shall be Covered each night, and/or other terms as defined by the Attorney. The motion passed on a three to two vote. Two members voting against the motion were concerned with the HRA's liability due to the three pools for display being filled with water. Scott Rolfe was requested to attend the August meeting of the HRA for an assessment of the 6- month use. . . . City Council Agenda -03/13/00 9. Consideration oran amendment to the Zonin~ MaD to rezone a Darcel from I-lA. Li!!ht Industrial to R-3. Multiple Family Residential. Applicant: Gus LaFromboise. A. REFERENCE AND BACKGROUND: Gus LaFramboise has applied for a rezoning of property along between 7th Street and Interstate 94. The property is currently zoned I-lA, and abuts an undeveloped industrial parcel to the west, and an apartment complex zoned PZM to the east. There is R-3 zoning to the north across 7th Street. At the edges of zoning districts, there is often no clear direction as to whether a parcel should be one zone or the other. The issues to consider in this case would be policy and features of the land. The land itself lies at a slightly lower elevation than the adjoining industrial parcels. In its present state, it would be viewed as being more closely related to the adjoining apartment site in terms of topography. From a policy standpoint, however, the City has protected its supply of industrial land. The Comprehensive Plan goals list industrial development as a major objective of the City, particularly higher end industry. The property in question has a great deal of freeway exposure, making it an attractive industrial site for many purposes. The freeway exposure tends to degrade the property as a residential property. Intensively developed, an industrial site would likely generate slightly less total traffic than a multiple family project, depending on the type of projects. This aspect may be a benefit to thc long-term traffic capacity of 7th Street, especially at the intersection with Highway 25. As a residential site, the property would create a number of issues. The exposure to the freeway is one, as is the continued concentration of higher density housing in a single are of the community. Staff would be concerned about project quality of a multiple family development due to these tactors. The Planning Commission conducted the public hearing and recommends Alternative 2 below. B. ALTERNA TIVE ACTIONS 1. Motion to recommend approval of the rezoning from I -I A to R-3, based on a finding that there is adjoining land which is developed in with multiple family residential. 2. Motion to recommend denial of the rezoning, based on a finding that the Comprehensive Plan calls for a preservation of industrial land. and the freeway exposure would negatively impact a multiple family project. . City Council Agenda -03/13/00 " -'- Motion to table action on the rezoning, pending additional information. C. STAFF RECOMMENDATION Staff does not recommend thc rezoning. Although the lay of the land would seem to relate it to the adjacent multiple family residential area more than to the industrial land to the west, there arc a number of negatives with residential development along freeways which tend to limit their long-term quality. These negatives are positives fi)r industrial, especially freeway exposure. Because the Comprehensive Plan encourages the protection of quality industrial land, and because freeway exposure is a problem for multiple family development, statT recommends Alternative 2. D. 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"",,, '" V-, "'''' mO Z o "'H :CEo< <<;0< ZH '" r.r.:U OU) 0", Zo "' :> U) -' f5 o Eo< Eo< '" o 0< '" '" ......- ,- . . , ~ COUNCIL UPDATE March 13,2000 Update on Potential Salc of Senior Citizen Building - Dennis Anderson: (R W) In November 1999, the Council accepted an offer from Mr.Dennis Anderson for the purchase of the senior citizens building at a price of $130,000. Mr. Anderson had originally proposed to use the facility for a laundromat but changed his plans and indicated a desire to remodel it into an office building. With the seniors recently vacating the property and relocating into the new community center, finalizing the sale of the property could take place at any time. Recently Mr. Anderson has indicated a desire to change his proposed use of the huilding from an office building to a private rental facility for family and business functions. Mr. Anderson feels there would be a benefit to the downtown area by having this facility available for business and family functions hy remodeling the huilding into an old fashioned ree room/family room type of facility versus simply a banquet hall for rent. One of the concerns staff has previously noted with this huilding is the limited parking that is available on site. The Council supported the sale of the building for an office use originally because the parking requirement did not seem to be greater than what was presently occurring through the senior citizens use. On a normal day, the senior citizens usage was probably a dozen or less cars unless they had a birthday or anniversary dinner function which then created a larger demand during the daytime. Mr. Anderson feels his use would not be any more intense than the senior citizen center usage hut the parking requirement would likely occur more in the evening and on weekends than during the day. That is not to say that the huilding wouldn't be used for business functions during the day time hours, but it is likely that usage for family events would like occur in the evenings or on Saturdays or Sundays. In discussing this proposed usage with our City Planner, Steve Grittman, he did note some concerns on the parking with this change of use. Since the Council had originally accepted the oUer assuming it was going to he converted to office use, I wanted the Council to be aware of Mr. Anderson's proposal prior to the sale being completed. If the Council feels the proposed usage as a rental facility would fall in line with our CCD District zoning classification, the only issue really relates to whether the Council feels there is enough change in use to affect parking problems in the area. Please note that under such circumstances where a change of use will bring additional parking demand, and no parking is availahle, the City would be requiring that additional stalls be developed, or the owner has the option of providing $1,000 per parking stall. The deficiency is difficult to estimate but would he derived from taking the demand for spaces generated by the senior center, minus the demand generated by the new use. An estimate of stall deficiency has not yet heen prepared but it could be as many as 25-35 spaces. Council should consider the precedent that is set if it waives thc parking requiremcnt when selling property that the City owns. On a final note, the appraisals we obtained {(Jr the property were in the $160,000-$190,000 range and I believe the Council accepted Mr. Anderson's lower offer recognizing that the parking availability on site supported a reduced value. . . I ~. I f the Council is comfortable with M r. Anderson's change in use, stall will proceed with getting the title work brought up to date and completing the sale as soon as possible. If the Council feels this use needs to be evaluated further because of the parking that may be necessary for such a use, this concern should be relayed to Mr. Anderson before the sale is completed. Attached is an outline of Mr. Anderson's proposal for the facility and some comments he has for the concept. Attachment: Proposal dated 3/] /2000 -. March 1, 2000 - Rick Wolfsteller City or Monticello Dear Rick, I am submitting, per your request the following plans for the Senior Center Building: We plan to use the building for a private rental facility for family and business functions. This facility could be "one of a kind" for Monticello because of the following. 1. Interior decor-generous use of sofa's, plants, lighting and tables, etc to resemble a luxury family room in a million dollar mansion. 2. Create a warm and luxurious atmosphere thru the use of dark woods and traditional decor. 3. Walls will be accented with actual photographs of the community and also portraits of senior citizens. 4. Existing cabinetry believed to be 100 years old now on premises must be preserved and restored for everyone to see and share. (Came from old Monticello cafe) 5. Small kitchen & bar for private use, small dance floor and gas fireplace to be added. . We sincerely believe that this concept would be the very best use for the entire community based on the following reasons. 1. It's a business based on fun and entertainment that we desperately need in downtown. 2. It will certainly bring people (some from other areas) into downtown Monticello and should have some positive effect on their businesses as well. 3. This building (if done to perfection) will help improve the image of downtown and will add another success story. 4. The Senior citizens and the entire population of Monticello will still be able to come back and enjoy the building because of the rental program. As you know, Rick, we have discussed many ideas-----office space? Nothing exciting for Monticello. Laundry? We have a nice laundry now and wouldn't add to the community. The Senior Center Building has been used for social gatherings and entertainment for the past 25 plus years and I want to keep the usage exactly the same. . Best RegardS/). .~ (;\t1....d V' ~.~~. Dennis Anderson - . . I '-... COUNCIL UPDATE Mareh 13, 2000 Uodate on Personal Prooertv Tax Le1;islation. (RW) Attached for your information is a copy of a recent memo I received from the Coalition of Utility Cities lobbyist, Tim Flaherty and John Hofland regarding the present status of the personal property tax elimination debate. As you will note in the memo, it doesn't appear that legislators are interested in tackling this problem this session, but it is the coalition's intent to still introduce our bill that Mr. Flaherty discussed previously with the Council. Our proposed legislation would simply leave the tax structure as it is and allow NSP to get a refund from the Department of Revenue for any personal property taxes they pay. I have also attached a copy of NSP's response to our proposed solution and also a copy of our lobbyist's response to NSP's letter. As you can see, NSP doesn't want to take any risks in getting the state to rebate taxes every year and likewise, that has been the cities concern all along that if state aid is used to replace our lost revenue, we are uncomfortable with that being the guarantee. Should you have any questions regarding the coalition dlorts or thc letters in general, feel free to give me a call. Otherwise, the memo and letters should keep you up to date on where we are at this point. Attachments :Memo Letters . . . - MA R. ' 7. 2000 10: 53 PM 011 16512259088 FLAHER1Y & AsSOCIATES Professional Association NO. 1386 P. 1 MEMO UM To: Coalition of Utility Cities Memb rs From: Tim Flaherty &: John Hofland Date: March 8. 2000 Re: Legislative Session Update _..~__.______ ..~__w____.-- One month into the legislative session, lc&islato are not expressing any interest in addressing the personal property taX on &eneration machi . We met early in the session with Senate Tax Chair Doug Johnson (OFL- Tower) and he said h has no interest in dealing with the issue this year. The Leiislature seems content to let the D partment of Revenue study run its course and look at the issue as part of electric utility restruc . g and property taX ref om, which are both expected to be debated next session. However, fficials at the Department of Commerce have recently indicated that electric utility re may be delayed because telecommunications restructuring is unlikely to be passed this sessio by the. Legislature, which would push back the electric utility restructuring debate. We still plan on having our personal property legislation introduced this session so that the host communities' proposal is on the public reco d. We will not request a hearing, and will probably wait to introduce the legislation until end of the legislative session. Attached is a copy of a letter we received from NSP inforrnin us that they cannot support our proposaL Also attached is our response to some of the assertio they made in their letter. The Coalition of Utility Counties is also havina eir proposal drafted into legislation. The counties have infonned us that the first draft con . ns a number of en-ors and that they are having it redrafted. We will fax out a copy aftheir dr legislation after the revisions have been made. We will try and coordinate with the counties so at our legislation is introduced about the same time. Other Utilitv Le~islatioD HF2700 (Davida)JSF2419 (Scheevel) - This leg slation seeks a personal property tax exemption for Great River Energy's proposed peaking facili in Elk River. The bill has been heard by both the Senate and House tax committees and is bein considered. far possible inclusion in the omnibus tax. bill in both houses. It will likely be' both tax bills. During the House hearing, 444 Cedar Street. Suite 1200 . Piper Jaffray Plua. St. aul, MN 55101 . (6$1) 225-8840. Pax (651) 225~9088 . . . -- MAR. ,7.2000 10:53PM 011 16512259088 NO. 1386 P. 2 Rep. Jennings asked the county commissioners who were testifying on behalf of the bill about their support for the exemption compared to the position of the Association of Minnesota Counties. The commissioners did a good job of distinguishing between this peaking facility and base load facilities that are in current host cities and counties. HF2996 (Wolf)/SF3337 (Johnson, D.H.) - This legislation requires electric utilities to begin separating the cost of generation, transmission, and distribution on customer bills by July I, 2001. The bill also calls for a study of environmental impacts and the reliability of Minnesota's power supply. An amendment was discussed in the House Regulated Industries Subcommittee hearing that would have required utilities to also report the cost of personal and real property taxes on customer bills. The amendment was offered by Rep. Jennings, but was withdrawn because it was not supported by the author. The bill has passed out of the necessary committees and has been sent to the House floor. The bill will be heard in the Senate this Friday, March 10, and it is unclear if a similar amendment dealing with property taxes will be offered in the Senate. As of now, there are no plans to schedule a eue meeting during the session. We will keep members updated via faxes and will not call a meeting unless the Legislature deviates from its current position of waiting to address the personal property tax next year. The next Department of Revenue utility tax meeting is scheduled for March 31. The discussion will focus on assessment and valuation. If you have any questions, call Tim or John at (651) 22S-8840. Attachments Page 2 , . . . . -.. 'MAR.. 7. 2000 10: 54PM . ~ NIP 011 16512259088 NO. 1386 P. 3 Northern States Power Company 145 University Ave. W" Suite 470 St, Paul, Minnesota 55103 Telephone (651) 22g...2545 January 24, 2000 Tim Flaherty Coalition of Utility Cities c/o Flaherty and Associates 444 Cedar Street Suite 1200 St. Paul, MN 55101 Dear Tim: Thank you for meeting with me and other representatives from Northern States Power Company on your latest proposal regarding the personal property tax on generation plants. We want to continue to work together so we can find a solution which can be sUpported by both NSP and our host communities. Your latest proposal recognizes that the personal property tax will be a barrier to fair competition in a restructured energy environment, and attempts to respond to the economic realities of competition as well as the revenue needs of host communities. By accepting that both host communities and NSP have legitimate economic concerns regarding the future of the personal property tax, this proposal has taken a giant step toward our mutual goal of finding a solution which works for a/l of us. However. NSP cannot support the proposal you outlined at our last meeting. While It i8 a step in the right direction, there are still several elements of the bill which are unacceptable to NSP: · The bill codifies the two-tier property tax system for generation plants which the LegiSlature has informal/y' implemented over the last several sessions. NSP believes that in a restructured electric market, generation companies should be ta~ed similarly to other Minnesota businesses which must compete in the marketplace. Your proposal will tax some generation companies under one system, others under a second - this isn't equitable wIthin our own Industry, let alone with other Minnesota businesses. The proposal is no different than if Target Stores were taxed under one system and Wal-Mart were taxed under another; it is unfair even if the final result is roughly equitable for each business in any individual year. · The bill is drafted as if vertically integrated utility companies will continue to exist, and the MnPUC will continue to regulate generation rates. In a restructured market, our generation prOduct will no longer be rate regulated: we will be setting prices on the open market as any other industrial company currently does. Personal property taxes will no longer be recoverable in rates for generation companies, and it is not sound tax policy to expect two generation companies (NSP and MN Power) to pay -- . . . -. NO. 1386 P. 4 'MAR.. 7. 2000 10: 54PM 011 16512259088 . roughly $34 million in unique property taxe.s twice each year, even with a promise that it will be refunded by the state. · At OUr meeting, we briefly discussed some of the administrative problems inherent to the refund procedure. Basically. exempting some generation companies from a tax while others must face the administrative procedures intrinsic to tax collection and refund is unfair. As one example, your proposal assumes our unregulated generation company can cash-flow $24 million in personal property taxes on May 15th, with the promise that funds will come from the state a few days later when the tax bill is passed out of conference committee. That is unrealistic, and Is a risk of doing business which no other Minnesota company accepts. · Your proposal shifts ~ of the financial risks of the plan to generation companies. I believe we are both hopeful that future legislatures will honor a compromise p~rsonal property tax bill as Initially passed. However, representatives from host communities have expressed concern that the Legislature's support may waver after several years. In the event they are correct, the ~nancial risks to a generation company are greater than the risks to host communities. If the Legislature adopts a plan to provide host communities with L.GA to replace the personal property tax, host communities still have revenue options available If the Legislature reduces the aid in subsequent years. For example, cities and counties can use levies or fees to supplement lost revenue. This is not our preferred solution, but the alternative is available to host communities. Generation companies will not have that option, as we will no longer be rate regulated. If the L.egislature does not fully fund the property tax refund, we cannot replace lost revenue by raising our generation prices above the market price. Under this scenario, generation companies may soon be unable to sell their output - which I assume we agree does not benefit NSP, Minnesota consumers or the financial health of our host communities. As you discovered at our meeting, our tax technicians and the Cepartment of Revenue have Identified other pOints of concern with your current draft. NSP is also concerned whether your proposal will meet constitutional tests, and is examining whether the suggested optional fee imposed by local governments is workable. We will comment on those items in a separate letter. As I indicated, this plan has moved a giant step forward from H.F. 2367. However, it assigns serious financial risks to generation companies which own existing power plants, while allowing other generation companies to operate In Minnesota unencumbered by these risks. At this time, NSP does not plan to sponsor a personal property tax bill during the 2000 session, as we have during the past several years, If that strategy changes, we will contact representatives from our host communities to inform them of our plans. For example, if a reasonable proposal is introduced, we reserve the right to support it. In addition, if legislative leaders are interested in moving ahead with a personal property 2 . . . -. NO. 1386 P. 5 MAR. " 7. 2000 10: 54PM 011 16512259088 . tax proposal this year, we would join the debate and support" a specific proposal, as needed. In the meantime, we intend to continue to work within the Department of Revenue's current examination of utility taxation. We also would like to continue to work with your coalition on a personal property tax plan. Our preferred solution to this issue is a plan which N~P, other generating utilities and the host communities can all agree upon. In NSP's view, the plan should meet the following objectives: 1. Eliminate the personal property tax on al/ generation facilities 2. Keep host communities whole 3. Minimize the risks inherent in a change in the property tax system I hope we can reach agreement on a plan in time for the Department of Revenue to consider our mutual proposal as they develop legislative recommendations for the 2001 session. Thank you again for your interest in working together on this issue. Please feel free to call me any time at (651) 229-2581. Sincerely, ~~ Todd Rapp Director of State Government Affairs c: Representative Jerry Dempsey Joe Rudberg, City of Becker Jeff Haubrich, City of Red Wing Jenny Engh, Minnesota Department of Revenue Karen Baker, Minnesota House of Representatives Reseerch Department 3 . MA R. '7. 2000 10: 55 PM 01116512259088 .. __FLAHER1Y & ASSOClATE'bo--' Professional Ass",iation ".... NO, 1386 p, 6 . Febrnary 16,2000 Todd Rapp Northern States Power Company 145 University Avenue W., Suite 470 St. Paul, MN 5S 1 03 Dear Todd: Thank you for responding to the proposal the host comm1.U1ities discussed with you and the Department of Revenue on JanlW)' 7. We are disappointed that NSP is not able to support this proposal, which eliminates the personal property tax burden on existing generation machinery. We also hope that we can. continue to work toward a solution acceptable to both NSP and the host communities. . A3 we have told you, the host communities will not push a proposal that is not supported by all parties, and hope that you will do the same. We will probably bave this legislation introduced during the session, but 'Will not request a hearing in order to have the Coalition of Utility Cities' proposal on the public record. There are a few points in your letter that I would like to contend. First, the host communities' proposal in no way recognizes the personal property tax as a competitive barrier. Our proposal was put together to respond to legislators who wanted to know what type of solution the host communities could support. The host communities still believe insufficient evidence ofa competitive problem has been provided. We hope the Department of Revenue utility tax study will examine the competitive question in a. comprehensive manner. At this point, the host conununities view the personal property tax exemption to be a political problem, not a competitive one. . On the issue of codifying a two..tiered property tax system. the host communities believe that it is up to the legislature to decide whether or not a two..tiered system is bad tax policy. Current state tax policy creates incentives for energy efficiency by exempting the personal property tax if certain efficiency standards are met. Taxing coal. nuclear, natural jas, and alternative fuel icneration differently may be a tax policy that the legislature wants to support. Comparing Target and Wal..Mart stores to nuclear and coal..fired power plants is a meaningless comparison. The idea that a nuclear or coal-fIred power plant should be treated as any other Minnesota business is ,.~.... 444 Cedar Street. Suit. 1200 . Pip.r laffra)l Plaza. St. Paul, MN "101 . (651) 225..8140 . Fax (651) 225..9088 MAR. 7. 2000 10: 55PM 011 16512259088 "-- NO. 1386 P. 7 '- . Todd Rapp Febl'Ualy 16, 2000 Page 2 unacceptSble. They are not like any other busil1e3', 05pccially in re.pect to their impact on residents and other businesses in host communities. The legislation is drafted as though vertieal integmtion exi.ts, although it can and would operate JUSt as effectively If a company was no longer integrated. It was done that way assuming the! this legislation would be passed before restructuring legislation is approved and lU:lUal competition begins. PUC regulation is relevant under our Proposal because the tax bUIden would be eliminated immediately, while IOUs are stilllUUIer PUC regulation. After the start of competition, when generation rate. are no longer resuJated by the PUc, the property tax refund will follow the generation eompany that is paying the tax and the PUC provision - as all PUC rate regulation provisions in existing statute. - would be moot We assume thet competition will not begin for five to ten years, therefore the automatic rate reduction was included in the legislation so thet the companies stated de.ire to pass the .avings from the pmonal ptoperty tax exemption onto their CUstomers would be realized. . The host cOOll1lunities do not believe the generating comPanies will have a problem making the personal property tax payment Your letter PIesurnes the market price will be lower !ban the current generation cost. under regulated rates. The market price could in 1ilct increase, providing more !ban sufficient income to cover the property tax payment. In addition, If generation plants are divested to non-regulated subsidiaries, cash flow should not be an issue sUu:e many non-regulated subaidiaries already have holdings worth severa! billion doliars. Also, new generation companies will have to have sufficient cash flow to pay their other operatine costs (labor, fuel costs, debr. etc.). Why wouJdn 'tthese companics have sufficient cash flow to pay their taxe., just another of their operating costs? The legislation does place the fuwu:iaJ risks on the utilities, which host COOll1lunities believe is appropriate, since the utilities are asking for the CXCIlIplion and receiving aU of the benefits froDl the exemption. It is not realistic to ask host communities to take the risks wbile the IOUs receive aU the bene/its from the legislation, This is particularly true when business tax.. and government aids are compared against each other as to their relative risk. We believe thi. shows the "double edged SWOrd" efrect of this SlralollY. Not only is the risk _to host COOll1lllllitie'!ban it would be to the IOUs, but ho.t COlllll1unities don't get any oflhe benefits that may WltTant exposure to that kind of risk. Your letter also state. that local governments are protected because they can simply raise t1teir levy lfaid to them is cut. Thi. is a fundamental misunderstanding ofth. concerns host communi tie. have raised. and frankly i. no more reasiblethan IOUs raising their rates abOve what their customers can afford to pay. Residents and other husine.... in the host communities would be subjected to wholiy UllaCceplable tax increase. as a result of thi. ohift. ManY.smal1 busin..... and homeowners simply could . . , ._, MAR.- 7.2000 10:55PM 01116512259088 NO. 1386 P. 8 '-.' '-, Todd Rapt> Feb~ 16,2000 Page 3 not withstand the size of the increase necessary to Cover this cut, 'and a city council would neither Want to, nor be able to, force those increases. Finally, the host colXUtlunities also believe this proposal alleviates constitutional concerns based on our work with House Research. Since we are two weeks into the leeislative session, and we have no agreement between host communities and IOUs, we think it is unwise for the host communities or the utilities to get dragged into a forced settlement by legislators. Therefore, we will oppose passage of any legislation Proposed by any legislator or interest group on this subject this session and would like you to do the same. Sincerely. 7I:::i1? 6 cc: Representative Jerry Dempsey Joe Rudberg, City of Becker Jeff Haubrich, City aiRed Wing Jenny Engh, Department of Revenue Karen Balcer, Minnesota HOWle of Representatives Research Department .. -.. . COUNCIL UPDATE March 13, 2000 New employee hired for replacine Sue Thibodeaux as Bookkeeper/Accounts Payable Clerk. (RW) For the past few years, Sue Thibodeaux has been the City's bookkeeper/accounts payable clerk and will be leaving the City's employment March 17th. Sue will be moving with her husband to Omaha, Nebraska as the result of his relocation. Because ofthc vacancy, the City recently advertised for this position and received 35 applications that were narrowed down to eight individuals that were interviewed recently for the position. As a result of the interview process, we have offered the position to Lori Wentland. Lori was able to work it out with her employer to allow her to work for the City of Monticello starting March 13th for one week so that she can work with Sue prior to her departure. Lori will then finish her two weeks notice with her present employer and begin again for the City full time on March 27th. Lori will begin at Step 1 within our salary grade four for this position which is $11.52/hour.