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City Council Agenda Packet 04-28-2003 (53" Consideration of adding items to tl~genda. _ ,_ ( ?V 12u pI- ~ +-0 C/Y~ujY J "f7J14-;C /) TSC~JS,,, N . Citizen c0l31~el}ts/pe~ons,' re9ues~and eomp aI,'nts. J/tcI/;cIJrfnJ' ''/.,.;,,-- ) (';((t'\J f"'-~ OJ" 5. Conse;(tAgenda: ___ No L1;t-rv~ 5'(7/'- _ }1gMJ >Y, [to ".,s. A. Consideration of approving the appoint lent of Cindy Anderson for vacancy on the Design Advisory Team. ;:;:J;) o REMOVED FROM AGENI~~ C'J ('f) 1"'-' J)1l{.M 0"" ~1 s l5> Consideration of resolution requesting conveyance of tax forfeited lands to the City. . . @ 6. . 11. AGEN A REGULAR MEETING - MON ICELLO CITY COUNCIL Monday April 28 2003 - 7 p.m. Mayor: Bruce Thielen Council Members: Roger Carlson, Glen Posusta, Ro bie Smith, Brian Stumpf 1. Call to Order and Pledge of Allegiance 2A. B. Approve minutes of April 14, 2003 regular COl ncil meeting. S Approve minutes of April 22,2003 Board of R viewRS ~ h.d,.,~-f- 'P DOl' /-2) ~e D. Consideration of granting a license to u e public sidewalk fi)f outdoor restaurant seating- Crostini's Grille. E. Consideration of Change Order No. 20 or TH 25, Project No. 96-04C. F. Consideration of approving sale of prop rty for Home Depot Project. 6-. 11l5o("'1--Q;..) 0.0 5ctPt ~(;. (t(nt. IAJJIC ~'l..(Jf' ~~d<~9.e Consideration of items removed from the con e t agenda for discussion. 7. Public Hearing and consideration of certifying elinquent utility accounts to Wright County. 8. Public Hearing and consideration of certifying elinquent accounts receivable to Wright County. 9. REMOVED FROM AGENDA 10. Receipt of bids for construction of Well #5 at 11 e 41h Street Park and consideration of award of contract to proceed wi th construction. Consideration of accepting bids and awarding c ntract for Cedar Street Improvement Project No. 2002-06C. Agenda Monticello City Council April 28, 2003 Page Two . 12. Consideration of payment of bills for April. 13. Adjourn . . . . . MINU ES REGULAR MEETING - MONTICELLO CITY COUNCIL April 14, 20 3 - 7 p.m. Members Present: Roger Carlson, Glen osusta, Robbie Smith, Brian Stumpf and Bruce Thielen. Members Absent: None 1. Call to Order and Pledge of Alle2:ianee. Mayor Thielen called the meeting to order at 7 p.m. and deelared a quorum present. The Pledge of Allegiance was said. 2A. A rove minutcs of March 24 2003 re ul r Council meetin ROBHIE SMITH MOVED TO APPROVE TilE MINUTES Of TIlE MARCH 24, 2003 REGULAR COUNCIL MEETING. ROGE CARLSON SECONDED TilE MOTION. MOTION CARRIED UNANIMOUSLY. 28. A rove minutes of March 24 2003 s eei' I Council meetin ~. ROGER CARLSON MOVED TO APPROVI': TilE MINUTES OF TilE MARCH 24, 2003 SPECIAL COUNCIL MEETING. GLEN P SUSTA SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 3. Consideration of addin items to the a City Administrator, Rick Wolfsteller indicat d prior to the closing of the meeting he would like an indication or how many members of the Cou 1cil would be attcnding the orientation session at thc Wright County Courthouse on April 17,200 . 4. Citizen comments/ etitions rc uests and om laints. Mayor Thielen eXplained the purpose and pr cedures of the citizens comments portion of the meeting. No one spoke under citizen input. 5. Consent a2:enda. A. Consideration of resolution approvin rencwal of charitable gambling license for American Legion Post #260. Rceommendatio : Approve renewal of charitable gambling license for American Legion Post #260. Rcs lution No. 2003-20. ),A Council Minutes - 4/14/03 . B. Consideration of ratifying new hires a' identified. Recommendation: Ratify the new hires as identified. C. Consideration of a request ilwa condiional use permit for concept stage planned unit development to construct otlice/retail building and parking. Applicant: Mike Cyr/MLC Building and Remodeling and Libert Savings Bank. Recommendation: Approve concept stage pun for a two-building comme eial development known as Liberty Park based on a finding that the plan is consistent wit the PZM zoning, with conditions that the applicant coordinate the driveway locations wit other nearby development and that development stage PUD plans include building ma erials, landscaping, lighting plans and other standard PUD submission requirements. D. Consideration of amendments to the istrict boundary map identified in the Downtown Redevelopment Plan. Applicant: Cit of Monticello. Recommendation: Approve the amendments to the Downtown Revit lization District Boundary Map. E. Consideration of a request by Ilome epot to allow a pylon sign in excess of the zoning requirements. Recommendation: A prove a taller and larger pylon sign for the Home Depot and Retail 13 complex based 01 the finding that the size of the parcel (38 acres) cOll1bined with the use of the pun will allow the City to exchange approval of the taller sign llw other sign restrictions that will res It in a superior development including monument signage identifying individual tenants only. Sign restrictions include the il)llowing: . 1. One pylon sign as requested i excess olcode per 38 acre site. 2. Additionalf;'eestanding signs cannot exceed 17' in height and must he landscaped monument signs. f. Consideration of allowing a benetit/s reet dance at the west parking lot of the Community Center on Friday, May 2,2003. Rec mmendation: Move to approve utilization of the Community Center site for a benefit/ treet dance on friday, May 2,2003 and associated beer sales license. G. Update on goal setting process - dete mine need to prioritize tasks prior to joint Monticello Local Government Meeting. Recom endation: Move to complete prioritization after the joint Monticello Local Government eeting. . Glen Posusta request that items #5C and #51" be removed trom the consent agenda for discussion. Mayor Thielen asked the reason for removin the items. Glen Posusta stated that he wanted clarification on how plan review and the per lit process will be handled for #5C since a city staff member is personally involved in the develo ment. Mayor Thielen suggested that since this related to a personnel issue #5C would be placed at he end of the agenda and #5E would be considered after approval of the consent agenda. Brian Stumpf indicated that this issue was raised at the 2 .).A . 6. . . Council Minutes - 4/14/03 Planning Commission meeting and the Planning Commission was assured that there was no confEct of interest. BRIAN STUMPF MOVED TO APPROVE r HE CONSENT AGENDA WITH ITEM #5C BEING REMOVED TO THE END Of THE AGENDA AND ITEM #5E BEING REMOVED FOR FURTHER DISCUSSION. ROBBIE MITH SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. Consideration of items removed from the Item #5E related to the request of Home Dep t for a pylon sign in excess of the ordinance requirements. Glen Posusta wanted to know where the City was with Home Depot's request and whether the City should consider a different t pe of sign ordinance for larger areas. Deputy City Administrator, Jeff O'Neill, reported that the Planning Commission supported the 60' sign based on their findings that the area in question was la ge and the developer had made concessions on other signage f()[ the site. The Planning Commiss on also made a motion to hold a public hearing to look at the sign ordinance. The ordinance would -et out some guidelines so that the signage would not have to be done as a PUD. Jeff O'Neill stat d that the input received at the public hearing will be used to formulate the ordinance. Glen Posus a asked is the proposed ordinance would affect the I-Iome Depot sign request. Jeff O'Neill state I that Council approval tonight would take care of the sign issue for Ilome Depot. BRIAN STUMPF MOVED TO APPROVE TALLER AND LARGER PYLON SIGN fOR THE HOME DEPOT AND RETAIL B CO PLEX BASED UPON THE FINDING TIIA T THE SIZE OF THE PARCEL (38 ACRES) COM INED WITH THE USE OF THE PUD WILL ALLOW THE CITY TO EXCHANGE APP {OV AL OF TIlE TALLER SIGN FOR OTHER SIGN RESTRICTIONS THAT WILL RESL LT IN A SUPERIOR DEVELOPMENT INCLUDING MONUMENT SIGNAGE 10 ,NTIfYlNG INDIVIDUAL TENANTS ONLY. SIGN RESTRICTIONS INCLUDE TI-IE FOLLOWING: ]) ONE PYLON SIGN AS REQUESTED IN EXCESS OF CODE PER 38 ACRE SITE; AND 2) ADDITIONAL fREESTANDING SIGNS CANNOT EXC ED 17' IN HEIGHT" AND MUST BE LANDSCAPED MONUMENT SIGNS. RC BBIE SMITH SECONDED TilE MOTION. MOTION CARRIED UNANIMOUSLY. 7. Public Hearin on Phase I of Core Street City Engineer, l3ret Weiss, gave a presentati n on the work proposed under this project. He noted that the City had discussed the project for a umber of years. Many of the City's streets are over 25 years old and are in need of work. The treet Reconstruction program will be taking place over a number of years and the overall cost f the project is estimated at $12,000,000. Phase I is the area bounded by CSAH 75 on the north, TI-I 25 on the east, Elm Street on the west and 7th Street on the south. Bret Weiss reviewed t e water main facilities in the area noting which lines 3 d-A Council Minutes ~ 4/14/03 . were proposed to be replaced. He also expl ined the condition of the sewer lines in the area and the corrective work that would be needed on the sanitary sewer system. He showed a brief video of the televising of one of the sewer lines an explained how the televising reveals the condition of the line as far as cracks and dips. He noted t at some of the pipe in the Phase I area is clay pipe which is more susceptible to cracking. Rret Weiss then went on to explain the street work that would be done as part of the project. He noted that originally the streets in the area ere constructed with 4"~5" of bituminous placed directly on the existing soils. There was no Class V ase as there is in street construction today. The typical commercial street section is 40'-44' and the r sidential section is 30'~36' wide. A commercial section would have 4" of blacktop over 8" 0 Class V and a residential section would have 4" of pavement over 6" of Class V. Bret Weiss ex lained the reclamation process the City is proposing to use. He indicated that at this time it has n t been determined whether the wear course would be applied this year or the following season. In Phase I Walnut Street, 6th Street and a portion of Elm Street are state aid streets and state aids fund' could be utilized on this project.. The streets in this area are cracked and patched and there arc pi ces where the curb and gutter arc in need of repair. . The estimated cost for Phase I, ifdone in its ntirety, is approximately $3,000,000 with $2,049,125 for the street work, $312,650 for sanitary se er work; $418,000 for watermain improvements and $222,430 for storm sewer improvements. T 1e area proposed for Phase J was split into two arcas, north of the railroad tracks and south of the l' ilroad tracks. Bret Weiss broke out the cost of the ilnprovelnents flJr each area. If only Area 1 ~ was done at this time the estimated project cost would be $1,778,480. If only Area I ~B was one the estimated cost would be $1,252,760. Some storm sewer work is being proposed that would replace the 12" line on Locust Street and a storm sewer outlet for the apartments on Mil nesota Street is also being proposed. A segment of sidewalk on 4lh Street between Maple Street. nd Elm Street is proposed to be added. Bret Weiss then covered funding sources tha could be utilized to finance the street reconstruction project. He noted that State Aid funds coul be used to cover some costs in addition to the proposed assessments against benefitting pro ertyowners. He stated although the City had discussed how the utility replacements costs 'OLdd be handled they had not made a final decision whether the costs would be funded from the Itility funds or through an utility assessment. Bret Weiss cautioned that the estimated assessmel t of$3,000/per residential unit or $70/fl:. for non~ residential property was preliminary. Final c )sts would not be known until the assessment hearing. . Bret Weiss stated that if the Council authoriz s preparation of plans and specifications at this meeting, they would try to have the plans an specifications back to the Council for their approval in May. It is hoped to award the bids in June at d start construction in late June with an estimated completion date of November 1 st. The asses ment hearing for the project would be held in 2004 and the assessment would be certified f()r col ection with the 2005 taxes. Bret Weiss summarized saying that the City had studied the best way 0 implement the program for reconstructing the City's 4 :pA . Council Minutes - 4/14/03 streets and they felt it was important to begi the reconstruction of the streets bef()fc the infrastructure was too far deteriorated to be estored. T'he City Engineer then respondcd to questions from the City Council. Mayor Thielcn stated that the City has consi ered this program for some time and even though the City has sct asidc funds to cover some of the costs of the program it still requires assessment of benefitting property owners. Mayor Thiele also asked for clarification from thc City Attorney about a member of the Council participating in the matter if he is one of the affccted property owners. The City Attorney indicated that t e Councilmember may partieipate in discussion but should not vote on the matter. Mayor Thielen then opened the public hcarinr. Rory Zitur, 354 West Broadway, asked why the townhouse developments and the City owne property were not being assessed. He asked how the $3,000/per residential unit and the $70/ft. for non-residential property were arrived at. He stated that the estimated assessment on this project or his propel1y was over 12% of his assessed property value. He did not believe the recon truction of the street would increase thc value of his property hy 12%. He felt the City should not push ahead with this project hccause of the bad economic times. He also questioned whether thc economic woes of the statc would anect the amount of state aid the City would reccive. . Bret Weiss responded that the townhouse de elopments would be assessed $70/ft. along their puhlic strect frontage hut nothing f(Jr their int mal streets which arc private streets. He indicated that the City was already funding a large portion of the project cost and therctore no assessment was put against City owned property. The es imated assessment rates werc based on benefit to the property. Bret Weiss indicated that many residential property have lower value than commercial property and cannot carry as high an assessm nt as commercial propcrty. As far as state aid funds, Bret Weiss stated that the funds were 12% les' this year but that is as far as it can be reduced. Rory Zitur questioned whether the City woul be paying for the utility replacement costs. Bret Weiss indicated the decision ultimately will e made by the Council Usually replacement of utility lincs were not assessed but replaccment of ser ices could be. Rory litur then asked if the City doesn't have to prove benefit in the amount 01 the assessment proposed. Bret Weiss responded that the property owner has to show proof that his property did not reeeive benefit. Public Works Director, John Simola, noted that currently cit ordinance does state that the property owner pay for replacement of utilities. Brad Fyle, 501 West Third Street, stated that I e was not for going ahead with the street project. He didn't feel there were that many cracks in t 1e street that warranted replacement of the street and he didn't agree that the streets were at the end ftheir useful life. He also expressed concern that starting this project when the CSAH 75 was n( t yet completed was trying to do too much. He stated that there are other streets in the City in worse condition than the ones proposed to be covered under this project and he specifically ited River Street by Riverside Cemetery. I Ie felt the City should hold off on the project for one mo e year. . 5 ;)A . Council Minutes - 4/14/03 Jeff Burns, Little Mountain Feed, 410 Mapl Street, concurred with the comments of Brad Fyle. He felt with the numbers of streets torn up arts of Monticello would be impassable. He noted that with the war in Iraq and the budget concern it would advisable to wait on this project. Bret Weiss responded that a pre-eonstructio meeting on the CSAH 75 project is scheduled and it is estimated that the work on CSAll 75 sho Id be done by June which would be before the Street Reconstruction project would be started. Bet Weiss stated that there should be no more than 4 weeks between when the road is cut up and hen the blacktop is laid. He also stated that not all the streets in the project area would be done at the same time. The contractor would work in sections, completing an area before moving mto the next area. Mayor Thielen asked Rick Wolfsteller, the City Administrator, to coment on how the state budget woes impact on the City's budget. Rick Wolfstcller stated that the Ci y sets a budget each year which ineludes capital expenditures. Since the City receivcs very Ii tie local government aid, the City's budget was not drastically atTected by the loss of local government aid. . Randy Rutl from the former Ruff's Auto sit, questioned that since the salvage yard fl:lcility was no longer there why was the proper1y being assessed as commercial. lIe also questioned when the extension of 7''' Street would take place sine that would be beneficial to development in the area. Hc also stated there were some boundary lin issues affecting his property that need to be clarified before development could take place. lIe als asked what the right-of-way width and paving width of the street would be and if state aid funds ere available for Elm Street. John Simola responded that the right-of-way width is 66' and the pav ng width would be 36'AO'. Randy Ruff also asked how the property his parents own would be s rviced with utilities and if the assessment for the project couldn't be extended from 10 to 15 y ars. Rick Wolfsteller stated that typically the assessments have been 10 years but if the Co nci I extended the length of the term of the bonds issued to finance the improvements, it would . e possible that the assessments could be extended. Bret Weiss stated that any property that was ot specifically single family was assessed at the non- residential rate of $70/11. Bret Weiss said alth ugh he was not aware of the boundary line issue he and John Simola would be willing to meet wi h Mr. Ruff to discuss the matter. Randy Ruff asked about the storm sewer work being proposed m d how that would be assessed. Bret Weiss explained that some of the cost for the storm 'ewer would be picked up by the developers. It was pointed out that if the Ruff Auto site was dev loped, the storm water pond on the Village Apartments site would have to be enlarged. Opal Stokes, 215 Locust Street, questioned th proposed storm sewer work. Bret Weiss indicated that the storm sewer work on Locust Street is 0 accommodate new business and will not be charged to the residents. . Brian Stumpf asked Bret Weiss to address wh River Street not being done at this time. Bret Weiss indicated that West River Street would involv a major sewer line replacement which would be very expensIve. 6 )A Council Minutcs - 4/14/03 . Mary King, 720 West 4lh Street, wanted to go n record as being against the project. She felt it was not a "needed" project but a "nice to do" roject. She stated the project was not feasible and the City should wait with doing it. Mary Kin asked where the stewardship was on this. Mayor Thielen responded that City has talked about this project a long time. The City has been very sensitive to financial concerns of the resi ents but the City has to start at some point to address the infrastructure of the City and since this ar a had some of the oldest streets it was a logical place to start. He appreciates that people are stress d but the City has a duty to take care of the infrastructure of the City. Bret Weiss added t at there is a point when the streets are so far gone they can't be reconstructed. He added that th Public Works Department has put a lot of time and money into repairing the streets to extend thei useful life a little bit longer. John Simola stated that $16,000 had spent in the last two years for pa ching and repair work in that area and the street is so worn in places that there is nothing f()f the ski patches to adhere to. Continuing to patch is not a cost effective way of dealing with the deterio ating street. . Harry Hebo of Harry Auto Supply, asked abo It the completion date of November I st. He questioned why they couldn't start the project earlier. He also expressed concern about difficult access because of the street project costing hi n business. Bret Weiss responded that it was their intent that substantial completion of the proje t would be prior to November 1 st. He added that the schools prefer to know at the beginning of as 'hool year when roads will bc differcnt because of construction rather than having to make thc c ange during the year. Mayor Thielen asked if the spccifications can be written up in such a ma ner so that the contractor is not tearing up the streets willy-nilly. Brct Weiss indicatcd that it coul be dctermined in the design process whether thc streets would be done going north-south or est-west. Glen Posusta noted that 3rd Street West is used as the parade route for Riverfest so that ould have to be worked around. John Weyrauch from llope Evangelical Chur 'h. 501 & 513 4th Street West questioned how the church property would be assessed. Bret W"iss statcd that it would be assesscd at the non- residential rate of $70/ft. Mr. Weyrauch indi atcd that the County had the property listed as residential. Anothcr residcnt was worried about whcther eople could afford this project with the prcsent economic conditions and he felt therc needcd to bc a better maintenance program for the streets. Bret Weiss indicated that $3,000 was what they felt would be the higher amount as an assessment rate but added that bids have not been receiv d yct. If the bids came in higher than expected, the Council has the option not to procced with the project. . Nate Rikansrud from Sunny Fresh Foods ha several concerns: 1) Scheduling of traffic and how it will affect Sunny Fresh. They have 30 traile s a day coming into their site. Bret Weiss indicated that when thcy get into the construction sequ nce is set they could work on traffic scheduling. 2) The installation of an 8" water main. Thcre curre tly is a 4" main to the building and the Greg Pauman from Sunny Fresh had indicated they would like more now. 3) What would they expect thc useful 7 ~ ~l . Counci I Minutes - 4/14/03 life of the new streets to be and what steps mid they take to make the road last longer. Bret Weiss stated that with proper maintenance t ey would hope to get a useful life of 30 years. 4) He noted that the interest rate proposed would b 2% above the bond interest rate and he wanted to know where that 2% goes. Rick Wolfstelle indicated that 2% was a cushion. Steve Bachler, 607 4th Street stated his belief that the City Engineer had a firm who was pushing to get the project done and he lelt this was a co flict of interest. He asked if the Council had walked that road. He felt the few bad spots could be removed and the whole street didn't need to be reconstructed. Rory Zitur asked if Bret Weiss didn't get pai a percentage of the total project and therefore had more to gain from a larger project being don. Bret Weiss stated that engineering fees can be charged on hourly basis or a percentage of th project. Mayor Thielen stated it was the Council's job to determine the scope of a project and to make sure the prices don't get too high. Mayor Thielen then closed the public hearing. Brian Stumpf felt they should proceed with t e project because it is something that has to be done. It will not make people happy but hc felt the infrastructure has to be maintained. Glen Posusta stated that the project should be scaled back' nd split into two or three sections. I Ie felt it would appeal more to the people if the project was on a smaller scale. J-Ic was also concerned about using all the street reconstruction fund money in th first phase. Bruce Thielen stated that he felt this would be an ongoing program and that it was very important for the project to get ofT on the right foot. He thought the area from CSAI I 75 to t le railroad tracks would be more manageable. Glen Posusta felt it would be better to do Area I B instead of Areal A. Brian Stumpffelt that 6lh Street was really in need of work. John Simola spo e about the economies of scale that could be realized in doing both areas. Bret Weiss stated that il the Council scales back the project it will extend the program longer than the 7 years initially state Robbie Smith asked if the City does 1 A or I B would the assessment stay the same. Bret W iss stated the assuming the City is not going to increase the amount they levy for the street re onstruction fund, the assessment amount would not cover the cost of the project. Changing the as essment rate would impact how quickly the city can fix the streets. Bret Weiss felt there were utility improvements in both IA and I B that need to get done. Glen Posusta asked if the assessment I' te would be the same in 2009 as in 2003. Bret Weiss explained that although a rate would b established it would be adjusted annually based on the construction price index. Bret Weiss also stated that any new improvement, not previously existing, like curb and gutter would be assess d fully to the benefitting property owners. Bret Weiss indicated that doing both lA and IB to 'ether would result in less disturbance since the contractor would only be in the area once. W ereas splitting the project into smaller segments makes the residents feel like there is always c( nstruction going on. Roger Carlson asked what the savings would be as far as economy of scale, ould it be a 5% or 10% savings. Bret Weiss indicated that he couldn't give a percentage of savings. He noted that the plans and specifications could be set up where lA and I B are bid sepa ately and then also bid as combined project. At . . 8 ~A . . . 8. Council Minutes - 4/14/03 the point where the bids have been received tl e Council could then decide what the scope of the project would be. GLEN POSUSTA MOVED TO ACCEPT l' E FEASIBILITY REPORT AND ORDER PREP ARA nON OF PLANS AND SPECIFI 'A nONS FOR AREA 1-13. Motion died f()r a lack of second. ROGER CARLSON MOVED TO ACCEPT THE FEASIBILITY REPORT AND ORDER PREPARATION OF PLANS AND SPECIFI 'ATIONS FOR AREA I-A, AREA I-B AND THE COMBINED AREA. BRIAN STUMPF SECONDED THE MOTION. MOTrON CARRIED UNANIMOUSLY. Robbie Smith asked if was determine to do 0 Iyarea lA could the storm sewer work in IB be done as part of I A. Bret Weiss indicated it e uld. Rick Wolfste!ler pointed out that the Council would have an opportunity to look at the plans and specifications before the project goes out for bids. Public Bearin - Consideration of an ordi Monticello Wolters Pro er -Prairie Pon It was noted that the public hearing involves 66' strip land whose ownership is in question. It was included in both the Prairie Ponds plat and th Groveland 4th Addition plat. The County is saying the property has not been annexed even thou h the strip orland was included in the legal description for Groveland 4lh Addition which had been a 1l1exed into the City. The City Attorney recommended conducting the public hearing and approving the ordinance which would satisfy Wright County. Mayor Thielen opened the public hearing. N) one spoke for or against the proposed annexation. Mayor Thielen then closed the public hearin . BRIAN STUMPF MOVED TO ADOPT TH . ORDINANCE ANNEXING THE 66' STRIP OF LAND INTO THE CITY. ROGER CARLSON SECONDED THE MOTION. MOTION CARRIED UNANIMOUSL Y. 9. Consideration of various utili fees and i ereasin J fees to cover re laeement in the future This item was tabled until the next meeting 10. Approve payment of bills for April. 2003. ROBBIE SMITH MOVED TO APPROVE A YMENT OF BILLS. ROGER CARLSON SECONDED THE MOTION. MOTION C RRIED UNANIMOUSLY. 9 ~A . . . Council Minutes - 4/14103 11. Prclimina consideration of cm 10 ment matter. The Mayor stated that the Council would be closing the meeting to consider a personnel issue. ROBBIE SMITH MOVED TO CLOSED T E MEETING. BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED UN NIMOUSL Y. The Council Chambers was cleared at this ti e and the meeting closed. The Council meeting was reopened at 10: 15 p.m. Mayor Thielen stated that the Council met in a closed session to discuss an personnel matte and he is a now looking for a motion to refer the employee matter to the City Administrator a d the Deputy City Administrator for research and to come back to the City Council with a recom 1endation on appropriate action, if any is needed. BRIAN STUMPF MOVED TO REFER 'I'll' EMPLOYMENT MATTER DISCUSSED IN TilE CLOSED SESSION TO THE CITY DMINISTRATOR AND DEPUTY CITY ADMINISTRAfOR WHO WILL RESEAR ~H THE MATTER AND REPORT BACK TO THE COUNCIL ON THE APPROPRIATE ACT I )N, IF ANY, TI-IAT SHOULD BE TAKEN. ROBBIE SMITH SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. The Council then considered item #5C from the consent agenda which was a conditional use permit for concept stage planned unit development 0 construct an office/retail building and parking. GLEN POSUSTA MOVED TO APPROVE CONCEPT STAGE pun FOR A TWO BUILDING COMMERCIAL DEVELOPM NT KNOWN AS LIBERTY PARK BASED ON A FINDING THAT THE PLAN IS CONSIST NT WITH TilE PZM ZONING AND WITII TilE CONDITIONS THAT THE APPLICANT C ORDINATE 'fHE DRIVEWAY LOCATIONS WITH OTHER NEARBY DEVELOPMEN AND TIIAT DEVELOPMENT STAGE PUD PLANS INCLUDE BUILDING MATERIA S, LANDSCAPING, LIGHTING PLANS AND OTHER STANDARD PUD SUBMISSION EQUIREMENTS. ROGER CARLSON SECONDED THE MOTION. MOTION C RRIED UNANIMOUSLY Other Items: Rick WolfsteIler asked how many pe pie would be attending the orientation session at Wright County on Thursday April 17,2003 so that e could inform the County of the number attending. 12. Adjourn. BRIAN STUMPF MOVED TO ADJOURN l' 10:25 P.M. ROBBIE SMITH SECONDED THE MOTION. MOTION CARRIED UNA IMOUSLY. Recording Secretary 10 ),P\ . . . MINt) ES SPECIAL MEETING- MONT CELLO CITY COUNCIL BOARD OF' EVIEW Tuesday, April 22 2003 - 7 p.m. Members Present: Roger Carlson. Glen P susta, Robbie Smith. Brian Stumpf and Bruce Thielen Members Absent: None 1. Call to Order. Mayor Thielen called the meeting to order an declared a quorum present. Greg Kramber and Dan Weber from the Wright County Assessor's Office were present. 2. Board of Review. Greg Krambcr and Dan Weber explained the urpose of the Hoard of Review noting that it is to deal with valuation for taxes due and payable in 2004. They also explained the appeals process. Brian Stumpf asked if they still physically review a quarter of the properties each year. CJreg Kramber indicated that they do but their pare I review docs not f()llow specific geographic boundaries. Dan Weber stated that when the review the property they are looking to verily the accuracy of existing inf(mnation about the pI' perty, make adjustments for any improvements made since the last review of the property or any de crioration of the property. Dan Weber stated that assessed value must co ne in at 90%-1 OS<Ycl of what the parcel sells for. Based on 198 residential sales, the sales ratio as at 89.98% so they did have to increase the values. The increase on residential properties was S<Yo. Dan Weber reviewed the changes to other property types. Commercial and industrial 1m d values increased by 20%; 4-unit apartments increased 15%; apartments containing 5 units or more increased 5% and agricultural land increased 250;;). There was also some discussion on green acres property. Wright County has more green acres property than most counties. In an effort to el sure that only properties that tnee! the green acres criteria receive the green acres designation, th county next year will require all green acres property to reapply for green acres. John Erlandson came before the Board of Re iew concerning the value set for the Southside Dental Clinic on Sandberg Road. Particularly he WiL questioning the value established for the property he purchased from the city. The value for the 12500 sq. ft. parcel was set at $29,400. Mr. Erlandson fClt because of the 30 foot setback equirement on both sides and the storm sewer that runs through the parcel it is not a buildable 10. Greg Kramber reviewed the land prices for commercial properties. He noted that sales aI" averaging $7.50-$12/sq. ft and he felt this was a )~ Special Council Meeting - 4/22/03 . good indication of what the property is worth. This property is in dose proximity to TH 25 and the value of $2.35/sq. ft. was a conservative valu considering what raw land is selling for. Mr. Erlandson reiterated that with the setback req irements and the storm sewer, only 6,000 of the 12,500 sq. n. should be considered usable. (reg Kramber stated that setbacks are not normally considered when establishing value. BRIAN STUMPF MOVED TO MAKE NO HANGE IN THE VALUATION SET FOR PARCEL 155-127-002024. ROBBIE SMIT SECONDED TilE MOTION. MOTION CARRIED UNANIMOUSLY. Brian Stumpf informed the property owner th It he has a right to appeal the valuation at the County level. The County's Board of Review is sche uled for June 17,2003. The property owner does have to notify the County of his intent to app al. Dan Weber had a number of parcels where ch nges in the valuation were being reconHnended and these parcels were reviewed by the Council. . Mark Parnell, owner of Steele's Collision at 071 Chelsea Road West. The parcel is approximately 7 acres and the much of the pa 'cel is either road or waste land so it was proposed to reduce the land value by one acre. In additiOl the building is partially completed and thcy \vere reconHncnding reducing the 50% completion alue to 33% cOlnpletion value. These changes would reduce the value fron1 $1,625,800 to $1.464,1 O. ROBBIE SMITH MOVED TO APPROVE T IE ASSESSOR'S RECOMMENDeD CHANGES IN VALUATION fOR PARCEL 155-141-001010. ROGER CARLSON SECONDED THE MUrION. MOTION CARRIED UNANIM( lJSL Y. Glen Posusta asked whether the building bein ) vacant had any impact on thc valuation. Greg Kramber stated that the value was based on tl e completed structure and not whether it was occupicd. Dan Weber reviewed a lettcr received from J y Morrell regarding parcel 155-0 I R-003060. The parccl is 5.4 acres and approximately 4 acres fthe parcel is a storm water ponding area. For that rcason he was recommending that the land bc valued as waste land. This would reduce the valuation by $9,400. BRIAN STUMPF MOVEI) TO REDUCE 'rl E VALUATION FOR PARCEL 155-018-003060 BY $9.400 AS RECOMMENDED BY THE SSESSOR. ROBBIE SMITH SECONDED THE MOTION. M(}rION CARRJEDUNANIM USLY. . Glen Posusta questioned why the Erlandson property couldn't be handled in the same manner. It was pointed out that the property is in a di1Tepnt area of the city and that the land values for 2 ;)2:> . Special Council Meeting - 4/22/03 commercial and industrial land diner signit cantly. Jay Morrcll also rcquested a reduction in va ues for parcels 155-500-142209 and 155-500- 142203. I Ie stated that because there is no '- ccess to these properties from TH 25 the value should be reduced. Dan Weber physically inspect d the site and stated there is a gravel road to the property and therefore access. He did not re onunend a change in the valuation. BRIAN STUMPF MOVED TO APPROVE THE ASSESSOR'S RECOMMENDATION FOR NO CHANGE IN THE VALUATION EST BUSHED FOR PARCEl,S 155-500-142209 AND PARCEL ]55-500-142203. ROGER :ARLSON SECONDED TI-IE MOTION. MOTION CARRIED UNANIMOUSLY. The property at 2502 Briar Oakes Boulevard (] 55-097-00 1170) was reviewed as the property owner had questioned the value. The proper y owner stated that only a portion of the basement had been finished. Upon review orthe property the assessor recommended a reduction in value li'om $290.900 to $283,500. GLEN POSUSTA MOVED TO APPROVE lIE REDUCTION IN VALUE FROM $290,900 TO $283,500 FOR PARCEL 155-097-00117). BRIAN STUMPF SECONDED 'THE MOTION. MOlION CARRIED UNANIM USL Y. . Three parcels formerly ovvned by St. Henry's were reviewed. The structures were in place on the property as of January 2,2003 although they ere latcr dcmolished. However, the buildings had been gutted as of that date so the assessor W,L recommending a reduction in the bui Iding value of 75%. BRIAN STUMPF MOVED TO APPROVE HE REDUCTION OF BUILDINCi VALUE OF 75% FOR PARCELS 155-0 10-028080. 155- 10-028090 AND 155-0 I 0-021 040. ROGER CARLSON SECONDED THE MallON. M )TION CARRIED UNANIMOUSLY. The building value 1l1r the Worktl1rce Center ct 106 Vine Street (155-010-053130) was also reviewed. The assessor recommended reducil g the building value by $35.000 which would result in a building value equal to last years. ROGER CARLSON MOVED TO APPROVE TIlE ASSESSOR'S RECOMMENDED REDUCTION IN VALUE OF $35,000 FOR ARCELI55-01O-053130. ROBBIE SMITII SECONDED TFn: MOTION. MOTION CA RIED UNANIMOUSLY. There were no other residents present who had questions nor were there any other written requests or comments fiJr consideration. Greg Krambe thanked the Council for their support. . ,., -) d~ . . . 3. Adjourn. Special Council Meeting - 4/22/03 ROBBIE SMITH MOVED TO ADJOURN THE BOARD OF REVIEW AT X:OO P.M. GLEN POSUST A SECONDED THE MOTION. OTION CARRIED UNANIMOUSLY. Recording Secretary 4 db City Council Agenda - 4/25/03 . 3A. Considcration to 1\ .-ove amendin the oan A reement between the HRA and Ci of Monticello relative to thc a mcn schedule for TIF District No. 1-23. (O.K.) . A. Reference and background: i i On April 14,2003, lA.C. Development, U~C, sold the industrial building and property located at Lot I, Block I, Monticello Comnlcrce Third Addition (9600 Fallon A venue NE), to Les Wunn, Production Stamping, lI~c. Prior to assigning the Contract for Private Development from l.A.C. to Production Sta~l1ping, Inc., the City must approve amending the payment schedule within the Loan Agre~ment, the HRA must approve amending the Contract, and lA.C. must pay the outstandil~g tax increment deficiency or $18,795. The negotiated terms of the amendment are outlijled within the attached letter of April 14, 2003, from the HRA to Chuck Van Hcel anq executed by Mr. Van Heel and Production Stamping, Inc. The HRA will conside.r amel1ding the Contract for Private Development at their next regular meeting of May 7, 2003 I The City of Monticello issued the lIRA a nl Revenue Note on October 1l)99, in the i amount of $181 ,000. Due to the commercia class rate compression of 200 I, the tax increment collected was reduced causing the tax increment deficiency. ""ith the seller agreeing to pay the outstanding deficiency, t le I IRA has agreed to revise the remaining payment schedule. Given the 2003 estirnate~ tax increment. the Note payment schedule would be extended from August 1,2005, to .f\ugust 1,2006. The life duration ofTIF District No. 1-23 is May 26, 2009. i I i Production Stamping will bring 35 jobs to ~ontieello immediately with an anticipation to add another 20 jobs. Production Stamping i~ relocating from Rogers, MN. Previously, the City, Charlie PfelTe1', Grady Kinghorn, aJ~d Production Stamping worked together on a proposal to construct a 60,000 sq n buildin4 between TCDC and UMC. After some negotiations with Chuck Van IIeel, Les Wur*l decided to purchase the Fallon A venue building. I i B. Alternative Action: I I I I. A motion to approve amending the L(~an Agreement between the liRA and the City of Monticello relative to TIF Di~trict No. 1-23 as outlined within the HRA letter dated April 14,2003. i I 2. A motion to deny approval to amend tihe Loan Agreement between the HRA and the City of Monticello relative to TIF District No. 1-23. 3. A motion to table any action. . City Council Agcndn - 4/25/03 c. l{ccommcndntion: . The City Administrator and Economic Development Director recommend Alternative No. 1-23. Full repayment to the City is only expected to be delayed one year, yet, well within the life or the district. And one vacant industrial building will be occupied with good paying jobs. D. Supporting Data: Copy of liRA letter, Loan Agreement, and anticipated new payment schedule. . 2 . r . li-I" -..I RPR 14 '03 07:03RM CITY OF MONTICELLO April 14, 003 Charles Van Heel Allied ?ropcrties & MaIlag~men1., LLC 20600 County Road 81 Rogers, MN 55374 RE: lA.C. D~velopment,LLC Matter Dear Chuck: We understand tllOt L".C, Development, LLC ('" AC'') inlonds to sell the property .Il.ot I, Block I , MO<llicello CommeIcc Cen'CI Tl>iId Addition t the owners of Production S,amping, Inc. As you knoW, J AC is currently obligated 10 the HRA lU dcr cert.in provisions of ,he Contract fOI Private Redevelopment, orig; nall y wi Ih AU; ed Con'p.n i s, L LC dated as of J unc 3, 1998, as .mcnded by · FiISI Amendmenl daled 1 ul Y 28, 1999 (the "Cont 'act"). J AC was an assignec of Allied Companies, LLC- In p,ior assignmenl documents, JAC e~p essly ,e..ined ,he obligation '0 pay tax incIen,enl defIciencies under Section 3.5(b) of the a.mende Conllact. The 1.1RA has delcrmined ilial as of ilic CUI"'ll1 date, ,h"e i; an oulSlanding ta~ Increment deficiency undcr Section 3 5 (b) in the amoum 0 $1 8,795. This deli CI<ncy wa; cre..ed by property laX reforms enacled in 200 I, which rcduccd the taX increment collcc ted from commercial.propert Y thrmlghout Minnesota. The HRA also estimales lhal tax increment ill continue lO fall short of ilic required paymanls through August \, 2005 (lhe final payment dat under the Contract). Based On current PIojcctions or tax inCIC ment co lIec non in 2003 (approxi atel y $34,000 of" A v ailable T a.~ I>><rement"), it .ppears that the .hort rail will be .boul $19,500 in =h of years 2003 and 2004. Based on discussions with the BRA board ch ir, I will make ilie following recommendanon to the HRA for cOI1~id~rational its flrsl meeting in May: \. If lAC pays Ihe outstanding derlcien 'y ($18,195), the HRA would Ievise the remaining payment schedule to reflect current cstimat s of ta.~ increment, including extension of time for payment if necessary (up lO February 1, 20 9). We currently expect lhat such revision wO\lld eliminale future daficienclcs.lhough Ihe H can make no warrantie"o iliat effect. 2. ?todllclion Stamping, Inc. would . SUOle the obligation, Ul\der Section 3.5(b) of the ConU.et m the event fUrlher tax increme t deficiencies occur (d<,pite the revised payment schcdule). production S lamping, Inc would Iso assumc the obli gal ion to ensure that all jobs allbe propcrty aller the transfer will meet the requ rements" f Section 3.7 (c) oflhc ConlT.ct (i.e, al least ""o_.,el\o ci<y H.U, ,"S WoInol S_', sui", I, "" _Ii",lto, MN 5s362.88,1 · (163) :"".1.111 . p"" (163) 295-'1404 om" o( Poblie Wo"'. '09 Golf Co"," Rd.. ..,",,110, Ml'l 5\362 · ('163) 29S- 3170 · ."" (76') 1.11-3272 . . APR 14 '03 07:03RM CITY OF MONTICELLO P.3/3 90% are filled by persons earning at least l60% of the applicable federal minimum wage). This obligation remains in effect only 1.lI1til the tinal payment under Section 3 .5 (b). 3. The assessment agreement remains in effect and is binding 011 Production Stamping, Inc. . That agreement sets the minirnum market value of the property at $1,825,000. 4. We also understand that lAC will pay up to $1,500 ofille HRA's legal costs in connection with modification of the Contract. 5. Upon JAC's payment of the outstanding deficiency and execution of an assignment and assumption between JAC and Production Stamping as described above, the HRA will release JAC from all obligations under the Contract These terms are subject to approval by the HRA board. In addition, the change in payment schedule under Section 3.5(b) is subject to approval by the City Council, because the City made the original loan and the HRA. has pledged to repay all the amounts received under that provision to the City. If both bodies approve, these telms would be documented in a11 amendment to the Contract. If you have further questions, please let me know. Sincerely, o~ \~CJ)CJ~D~ Ollie Koropchak . The undersigned agree to the foregoing terms: J.A.c. DEVELOPMENT, LLC PRODUCTION STAMPING.INC. By~dgf~. Date: April 4 2003 By ~~?:/,} ~11f{1;JVC.. Its 'R. ,JJ. Date: Aprild-, 2003 . . LOAN AG THIS AGREEMENT is entered into as of the ~hday of August , 1999 by and between the City of Monticello ("City") and the ousing and Redevelopment Authority in and for the City of Monticello ("Authority"). WHEREAS, the Authority has undertaken a program to promote economic development and job opportunities and to promote the developm t of land which is underutilized within the City of Monticello, Minnesota (the "City"), and in this c nnection created Redevelopment Project No. 1 (the "Project") in an area (the "Project Area") 10 ated in the City and Tax Increment Financing District No. 1-23 (the "TIF District") within the P oject Area, all pursuant to Minnesota Statutes, Sections 469.001 to 469.047 (the "Act") and Minne ota Statutes, Sections 469.174 to 469.179; and WHEREAS, the Authority has proposed t provide certain financial assistance to facilitate development and job creation on certain prope Y in the City described as Lot 1, Block 1, Monticello Commerce Center Third Addition, cording to the recorded plat thereof, Wright County ,Minnesota ("Development Property"), P rsuant to a Contract for Private Development between the Authority and J.A.c. Development C mpany, LLC (as assignee of Allied Companies, LLC) dated June 3, 1998 and a First Amendme t thereto dated July 28, 1999 (collectively, the "Contract"); and WHEREAS, the City is a state public b y that is authorized under Minnesota Statute, . Section 469.041, clauses (I) and (8) to make loans for the Project; and WHEREAS, the City has determined tha it is in the best interest of the City to loan the Authority certain funds in aid of the Project under the terms and conditions of this Agreement. NOW, THEREFORE, in consideration 0 the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: 1. The Loan Amount. Subject to an upon the terms and conditions of this Agreement, City agrees to loan to the Authority the sum f One Hundred and Eighty-One Thousand and no/1ooths Dollars ($181,000), or so much there Las is disbursed to the Authority in accordance with this Agreement (the "Loan"). The Loan hall be evidenced by a Tax Increment Revenue ("Note") payable by Authority to City substanti y in the form attached to this Agreement, which shall be delivered to the City and dated as of the an Closing Date as defmed in Section 3. (a) Interest at the simple rat of five percent (7.00%) per annum shall accrue from the Loan Closing Date (as hereinaf r defined) until the Loan is repaid in full. 2. Repayment of Loan. The Loan s all be repaid with interest as follows: . (b) Principal and interest on he Loan amount will be payable solely from and to the extent of the Available Tax Increme t and any other payments by the Developer to the Authority under Sections 3.5 and 3.7 f the Contract. The Authority hereby irrevocably S1B-16708\ MN\90-80 :=~t"::.~~~~ :~e~:~~~ ~~:; ~~:~o~13~V~~; :~~~~:~~~and Developer . 3. Disbursement of Loan Proceeds. The City will disburse the Loan amount to the Authority upon satisfaction of the conditions for disbursement to the Developer under the Contract (the "Loan Closing Date"). 4. DefInition of Terms. The terms capitalized herein have the same meaning as provided in the Contract unless otherwise defIned herein. IN WITNEss WHEREOF, this Agreement has been duly executed and delivered by the proper offIcers thereunto duly authorized on the day and year fIrst written above. CITY OF MONTICELLO /'7 ,,?'a .// ~~ ~ B~ ~ -' q Its M or ~;fi?:::'!;::~ . HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MO LO , By Its By CC'\Q,:,: Q- \,('^" ~D~ Its Executive Director . 81B-167081 MN 190-80 2 . . . UNITED STATE 0 AMERICA STATE OF SOTA COUNTY OF RIGHT HOUSING AND REDEVEL PMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO $181,000 No. R-l T AX INCREMENT VENUE NOTE SERIES 999 Date of Original Issue Rate ado~ \ '\ ,1999 7.00% Principal Amount: $181,000 Registered Owner: City of Monticello, Minnesota The Housing and Redevelopment Authori y in and for the City of Monticello, Minnesota (the "Authority"), for value received, certifies that it is indebted and hereby promises to pay to the registered owner specified above, or registered as igns (the "Owner"), but solely from the sources, to the extent and in the manner hereinafter identifi d, the principal amount specified above together with interest on the outstanding principal sum fro time to time at the interest rate specified above, payable on each February 1 and Angusr 1 CPa ent Dates"), conunencing Angusr 1, 2000 and continuing through August 1,2005, in the amoun set forth in Attachment A hereto. Payments are payable by mail to the ad ess of the Owner or such other address as the Owner may designate upon 30 days' written noti e to the City. Payments on this Note are payable in any coin or currency of the United Sates of erica which, on the Payment Date, is legal tender for the payment of public and private debts. Interest at the rate stated herein shall ac rue on the unpaid principal, commencing on .the date of original issue. Payments shall be appl ed first to accrued interest and then to unpaid principal. Interest accruing from the date of original issue to the first payment date will be compounded semiannually on each February 1 d August 1 and added to the principal amount. date. This Note is subject to prepayment in w Ie or in part at the option of the Authority on any . This Note is issued to aid in financin certain public redevelopment costs of a Project undertaken by the Authority pursuant to Miunes ta Statutes, Sections 469.00 I through 469.047, and is issued pursuant to a Loan Agreement betwe n the Authority and the City dated AUGUST 9 1999, and pursuant to and in full conformit with the Constitution and laws of the State of SJB-167081 MNl90-80 Minnesota, including Minnesota Statutes, Sections 469.174 to 469.179. This Note is a limited obligation of the Authority which is payable solely from (a) Available Tax Increment as defined in the Contract for Private Development between the Authority and J.A.C. Development, LLC, as assignee of Allied Companies, LLC ("Developer") dated June 3, 1998, as amended by a First Amendment thereto dated July 28, 1999 (the "Contract"); (b) any payments by the Developer to the Authority under Section 3.5 of the Contract in the event of deficiency in Available Tax Increment; and (c) any repayments by the Developer under Section 3.7 of the Contract (COllectively, "Pledged Revenues"). This Note and the interest hereon shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including, without limitation, the Authority. Neither the State of Minnesota, nor any political subdivision thereof shall be obligated to pay the principal of or interest on this Note or other costs incident hereto except out of moneys pledged thereto under the Resolution, and neither the full faith and credit nor the taxing power of the State of Minnesota or any political subdivision thereof is pledged to the payment of the principal of or interest on this Note or other costs incident hereto. The Authority shall pay to the Owner on each Payment Date the lesser of (i) the schedule amount due on such Payment Date as shown in Attachment A, or (ii) the amount of Pledged Revenues available to the Authority as of that Payment Date. To the extent that, on any Payment Date, the Authority does not have on hand sufficient Pledged Revenues to make the scheduled payment, the amount of deficiency shall be deferred and paid, without interest therefrom, to the extent possible on the next Payment Date on which the Authority has received Pledged Revenues in excess of the scheduled payment amount on such Payment Date. If any amount payable under this Note has not been paid by August 1,2005, and after any payment is made on such date, any amount not paid shall be forgiven and the Authority shall have no further liability with respect thereto. This Note shall not be transferred to any person without written consent of the Authority. IT IS HEREBY CERTWIED AND RECITED that all acts, conditions, and things required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen, and to be performed in order to make this Note a valid and binding limited obligation of the Authority according to its terms, have been done, do exist, have happened, and have been performed in due form, time and manner as so required. _. IN WITNESS WHEREOF, the Board of COmmissioners of the Housing and Redevelopment Authority in and for the City of Monticello, Minnesota has caused this Note to be executed with the manual signatures of its Chair and Executive Director, all as of the Date of Original Issue specified above. HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MO ELLO, MlNNESOT A ~" \/ r1() " )~~~:\ ~ U\ \J ~.,\Lv.7==-" Executive Director ' ~ 518-167081 MN190-80 2 . . . . . . ATTAC Interest 4,300.71 4,300.71 6,717.41 6,000.35 5,258.20 4,490.94 3,696.83 2,875.86 2,026.16 1,147.74 238.57 Princi al 0.00 0.00 20,487.39 21,204.45 21,921.64 22,688.90 23,456.12 24,277.09 25,097.80 25,976.22 6,816.39 Total Pa ment 4,300.71 4,300.71 27,204.80 27,204.80 27,179.84 27,179.84 27,152.95 27,152.95 27,123.96 27,123.96 7,054.96 518-167081 MN 190-80 A-I APR. 14,2003 11: 24AM EHLERS & ASSOCIATES NO, 3687 P. 2 City of Monticello, MN Midwest Graphics . Estimated payment schedule tor remaining principal plus deficiency with estimated revenue of $36,416.58 per year throughout remaining life of district. 7.00% Period Deficiency TIF Interest Principal Total Ending Payment Balance Payment Revenues Paid Paid Plyment Balance Date 121,442 18,795 37,004 4,250 32,754 37,004 88,688 8/112003 88,688 18,209 3,104 15.1 05 18,209 73,583 2/1/2004 73,583 18,209 2.575 15,634 18.209 57.950 8/112004 57.950 18.209 2,028 16,181 18,209 41.769 2/112005 41,769 18,209 1 ,462 16,747 18,209 25.022 8/112005 25,022 18.209 876 17,333 18,209 7,689 2/1/2006 7,e89 18,209 269 1,689 7,958 8/112006 18,209 211/2007 18,209 8/11200'7 18,209 2/112008 . ~ . Ehlers & Associates, Inc. 4/1412003 APR. 14.2003 11: 24AM EHLERS & ASSOCIATES d) l;l ~ . 11 -a !! o 1 -c :i '" OJ .. 41 E l!! u oS )( <0 l- I .9 ~ "2" o :l! 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M ,.: ...: Ifi ,..: COlOlOlOI,Q..."'N"',....."...N .,......-~......'IIJI""""...-...~ NO. 3687 ~g: C c' N N qq 8~ lOO aid "'1 ! 00 1 i I I I NI N. ".1 '~I :N , ,1:;' o ..0 ... .~i .~, lai' i 0;)1 I I o ol~' ,~ 110' I ' 01 I Ql 0 0 .... ... N N l"'J M "if' .., ." ll) CD CD ,.... ,.... a:l a:lll Qloooooooooooocooooo Qloooooooooooooooooo .... N N N N N N N N N N N N N N N N N Nil en. ~ q q 9 q <;; q 9 9 9 9 q q 9 9 9 9 9 9 ~I ONIONlONO;)N=NION~NIONIONClO~ .... 0 0 0 0 0 0 0 0 0 0 0 Q Q 0 0 Q 0 0, ll)Oll)Oll)OlOOll)OlOOlOOlOOll)Oll) d~~NN~~~~~~~~~~~~m~ P. 3 .... N ..- o c ;! .... c ~ i ~ ... 4l i: li! e cJ .5 Q. IS .!OO! :D ::J 11. ~ 1:1 e :! .. ~ ~ ~ t.) ~ . )f? ~ ADDITIONAL AGENDA ITEM: Consideration of Resolution Authorizing Sale 0 Property City attorney, Matt Brokl, is requesting council dopt this resolution pertaining to the exchange ofthe Library bldg. And Marquette B 1k bldg. That is scheduled to close on May 9th. This resolution may not be necessary as the COUl cil has already approved the exchange of properties at a previous meeting, but to insure th tall of the required documents are available for closing, a11(~ to be extra sure that al state statutes are being met in regards to sale of city property, the attorney is recommend d the council re-affirm its previous action by adopting this resolution tonite. Action: 1. Adopt resolution authorizing the sale ( e change) Recommendation: It's the recommendation of the city attorney an city administrator that the resolution be adopted as presented. . Supporting Data: Copy of proposed resolution . . ~ .~ CITY OF MO RESOLUTION AUTHORIZING THE S E OF PROPERTY WHEREAS, the City of Monticello owns roperty described on the attached Exhibit "A", (hereinafter the "Subject Property") upon wh ch is located a structure previously used as a Library; and WHEREAS, the City Council of the City f Monticello has considered the purchase of a building and property formerly used as a bank by ts owner, Wells Fargo Bank, to be used as the location of a new Library; and WHEREAS, the City Council has consid red an agreement by which the City would sell the Subject Property and receive other properties n return from Wells Fargo Bank; and WHEREAS, the City Council has dete ined that the transaction furthers its general plan of economic and community development; 102555 . . . WHEREAS, City staffhas negotiated the te s of the exchange and sale of the Subject l)_~_~-+n ~~ "T~l1~ l:',,_,,~ n~.,l". ~,,--l ... "'V!-,'-'.1L.) L.U VV ,,-",1.1", .1. (..l.J.6U J..,.l(.U.l,l'\" auu WHEREAS, the City Council finds that the ale of the property is in the public's interest and furthers the aims and purposes of the City, NOW, THEREFORE, be it resolved by the ity Council of the City of Monticello: 1. The City is authorized to sell the Subj ct Property to Wells Fargo Bank. 2. The Mayor and City Administrator ar authorized to execute all documents necessary, in the opinion of the City Attorney, to affi ct the sale of the Subject Property. Adopted by the Monticello City Council this 28th da of April 2003. ruce Thielen, Mayor ATTEST: Rick Wolfsteller, City Administrator 102555 . EXHIBIT 'A" Lots 1,2,9,10, West Half of Lot 3 d the South 10 feet of the West Half of Lot 8, Block 17, MONTICELLO, acco ding to the recorded plat thereof, Wright County, Minnesota. . . 102555 7(/ %ed item 4/28/03 Consideration of Adopting a Resoll';on Committ;ng Local Match and Authorizing Signature on a Clean~up Grant Application for the Ruf Auto site. . The remediation or "Clean~up" plan has been complete on the Ruff Auto site which sets the stage for application of funds necessary to clean up the site. The Cost of the clean up is estimated at $350,000. A complete copy of the remediation plan is available for our review. Council is now asked to facilitate the clean~up of the Ruff Auto site by sponsoring an applica ion for grant funding. The description of the redevelopment project is very general with insufficient ime available to provide a specific plan in time to meet the 6 month application deadline cycle. Under the grant process, the City is obligated to pay 12 5% of the cost of the c1ean~up ($43,000), However, the revenue for this expense may be obtained from the eve loper/property owner so that the only cost to the city is the staff time necessary to facilitate the project. Alternatives I. Motion adopting resolution Committing Local atch and Authorizing Signature on a Clean~up Grant Application for the Ruff Auto site. Motion ccmtingent on the following. The application must include a provisio stating that the minimum base sale price of individual housing units including land TIust exceed $180,000 per unit after adjusting for inflation of real estate values since .Ian ary 2003. . The City matching funds must be funde via contributions by the land owner or prospective developer. The application may be submitted on opinion of the City Attorney that a method exists for Developer coverage of the City Match. The application shall not include a com anent supporting affordable housing with the Ruff Auto redevelopment project but may re erence availability of affordable housing in the community at large. The Developer/Owner understands that approval of the application does not commit the City to approve a future project. It doe not represent an approval of any concept or development stage residential planned nit development. The project is subject to the residential development process which ncludes a public hearing process etc. Final project density and design will hinge on this pr cess. 2. Motion to deny approval of resolution supporti g c1ean~up grant application. Recommendation City staff recommends alternative 1. Although staffpr fers that such applications are accompanied by complete information on the proposed development, th re is not sufficient time to develop a complete application and have it reviewed by May 1,2003. It is ur view that the conditions associated with the motion to approve will result in a development that will meet the development goals for the area. SupoortinQ. Data . None. . . . SA. Consideration of a the a Design Advisory Team. (RW) City Council Agenda - 4/28/03 on the A. REFERENCE AND BACKGROUND: The Design Advisory 'ream at their April 15 2003 meeting recommended that the appointment of Cindy Anderson to a two year term on the Design Advisory Board be submitted to the City Council for their approval. With the appoil tmcnt of Cindy Anderson the Design Advisory Team will consist of six members. B. ALTERNATIVr,~ ACTIONS: I. Approve the appointment of Cindy Alderson to the Design Advisory Team to a two year term. 2. Do not approve the appointment. c. STAFF ){ECOMMENDATION: It is the recommendation orthe Design Advi ory Team that the Council approve the appointment of Cindy Anderson for a two ye r term. D. SUPPORTING DATA: None. Council Agenda - 4/28/03 . 5C. Consideration of resolution a Auditor. (R W) A. REFERENCE AND BACKGROlJND: The Wright County Auditor's office is in the rocess of preparing for an upcoming public auction of tax forfeited land. There are five parcels loe ted within the City limits. The Wright County Auditor is asking for Council approval to proceed witl the auction of these tax forfeited parcels. The City also has the option to adopt a resolution reque ,ting that the parcel be removed 1[om the public auction and conveyed to the municipality for public lL e. 155-010-0010101: This is a sliver of land al ng JI" Street. This is a remnant of Block I of the Original Plat of Monticello which was platted into the Monticello Mall Addition. 155-064-03050 155-064-003060 155-064-00_ 070 and 155-064-003080: These parcels are Lots 5-8, Block 3, The Meadows Second Addi ion. B. ALTERNATIVE ACTIONS: . I. Adopt a resolution requesting conveyal ce to the City of parcels 155-010-001010 155-064-003050, 155-064-003060, 15 -064-003070 and 155-064-003080.. 2. Adopt a revised resolution that would r~t1ect any changes to the parcels that City would request to be conveyed to the City. C. STAFF RECOMMENDATION: It is the recommendation of the City Administr' tor that the City request conveyance of parcels noted above to the City particularly those pare Is where the City has constructed improvements. D. SUPPORTING DATA: . List of properties proposed for sale. . Resolution . / DOUGLAS M GRUBER Wright " unty Auditor / Treasurer . 1as6 April 11, 2003 City of Monticello %Rick Wolfsteller 505 Walnut Street Suite 1 Monticello Mn 55362 Wri ht County Govemment Center 1 2nd Street NW Room 230 Buffalo, MN 55313-1195 Phone: (763) 682-7579 Enclosed is a classification listing of non-conserv tion land located in your city/township. The parcels described in the listing forfeited to the St te of Minnesota for non-payment of property taxes. . As required under M.S. 282.01, we request that au approve the parcel(s) for public auction or auction to adjacent owners or request a conveyan e to your city for public use. We require a certified copy of the City Council Reso u tion/ Township Board Resolution authorizing any action taken. If you request that a parcel be conv yed to your city, you must also complete the form "Application by a Governmental Subdivision for C nveyance of Tax-Forfeited Land" and mail it to this office. Special assessments which were levied before the fo feiture do not need to be certified to this office. They were canceled at forfeiture and will be paid fr m the sale price. Special assessments which are levied after the forfeiture should be certified to this ffice. They will be added to the appraised value and paid from the sale price. Please be advised that, if the City Council fails to resp nd within sixty (60) days of the date of this letter, the sale will be deemed to be approved. If you have any questions, please feel free to contact me at (763) 682-7579. Sincerely, \f\~ / )v; jJ '1 ..VJ ~}l\, -/...J-A -P~-- Do as M. Gruber Wright County Auditor/Treasurer . ~. r~ (G, lE ~ WJ ~ ..~.... i I, f'1 j APR 1 6 2003 J U CITY OF MONTICELLO SD . . . ". 155010001010 All of Block 1 of the plat of Monticello according to the plat of ecord and on file in the Register of Deeds Office in and for Wright County, Minnesota. Also that portion of the eas half of Locust Street, west half of Walnut Street and the North half of 8th Street as vacated in Book 30 of Miscellan ous, Page 157. Except tract described in Book 334 of Deeds, Page768. 155 064 003050 Lot 5 Block 3, The Meadows Second Addition, Wright County, innesota. 155064003060 Lot 6 Block 3, The Meadows Second Addition, Wright County, innesota. 155 064003070 Lot 7 Block 3, The Meadows Second Addition, Wright, County, Minnesota. 155064003080 Lot 8 Block 3, The Meadows Second Addition, Wright, County, Minnesota. SD . . . CITY OF MO TICELLO RESOLUTION NO, 2003-24 SALE OF TAX FORFEI ED LAND PARCELS WH !,,'REAS, the following parcels of land in the City )f Monticello have been forfeited to the State of Minnesota for non-payment of property taxes and sp cial assessments and these lots and parcels are being prepared for public sale under tax forfeited land sale . rocedures of Minnesota Statutes, Chapter 282, and; 1. 155-010-001010 All of Block 1 of the plat 0 'Monticello according to the plat of record and on file in the Register of Deeds Office in and for Wright County, Minnesota. Also that portion of the east half of Locust Street, west half of Walnu Street and the north half of gth Street as vacated in Book 30 of Miscellaneous, Pagc 157 except t at tract described in Book 334 of Deeds, Page 768. 2. 155-064-003050 Lot 5, Block 3, The Meado s Second Addition, Wright County, MN 3. 155-064-003060 Lot 6, Block 3, The Meadow.' Second Addition, Wright County, MN. 4. 155-064-003070 Lot 7, Block 3, The Meadow' Second Addition, Wright County, MN. 5. 155-064-003080 Lot 8, Block 3, The Meadow Second Addition, Wright County, MN. WHERf-':'lS, the City of Monticello has an interest in a quiring parcels for various public purposes including right-of-way extension and other economic and devel pment purOoses allowed under authority of Minnesota State Statutes, Chapter 469, WHERHAS, it has been determined that the delinquent special assessment debt against each tax forfeited parcel exceeds the appraisal value of each parcel as es ablished by the Wright County Board, and WIIHREAS'. Minnesota State Statutes required that an sale proceeds from tax J(Jrfeited parcels be first remitted to the city to cover special assessment debt b fore allocation of any proceeds to other jurisdictions for real estate taxes, NOW tHEREFORE, BE IT RESOLVED BY TIlE CIT COUNCIL OF MONTIe'FLLO, MINNESOTA: 1. The City of Monticello hereby requests that the tax f(Jrfeited parcels noted below be conveyed to the city for public purposes under statutes allo ing for city acquisition on PT Form 80, with a request f(Jr Minnesota Depal1ment of Revenue eeds on a Form 968 format. 155-064-003050 Lot 5, Block 3, The Meadows Second Addition, Wright County, MN 155-064-003060 Lot 6, Block 3, The Meadows Second Addition, Wright County, MN. 155-064-003070 Lot 7, Block 3, The Meadows _'econd Addition, Wright County, MN. 155-064-003080 Lot 8, Block 3, The Meadows econd Addition, Wright County, MN. 5D . . . 2. The City requests that the acquisition price or the parcels noted above be established by the County Board not to exceed the administrative costs of the county in completing the transfer and tax forfeiture process. 3. The City agrees to accept these parcels in lie 1 of any outstanding special assessment debt owing against each parcel. 4. The City of Monticello hereby requests that he tax forfeited parcel noted below be conveyed to the City f()r public right-of-way purposes in acc rdance with Minnesota Statutes 282 by application for conveyance of tax-forfeited lands for an autl orized public use. 155-0]0-00]010 All of Block I of the plat fMonticcllo according to the plat of record and on file in the Register of Deeds Office in and 10 Wright County, Minnesota. Also that portion of the east half of L,ocust Street, west half of WaIn t Street and the north half of 8th Street as vacated in Book 30 of Miscellaneous, Page 157 except hat tract described in Book 334 of Deeds, Page 768. Adopted by the Monticello City Council this 28th da of Apri], 2003. ATTEST: -"'--.'."'--"'."-."--.".-."--.'-- Rick Wolf<;tcller, City Administrator --'.'.--'--.-.'.---."."--'.,.--...,.---.".- ruce Thielen, Mayor sD . . . Council ^genda - 4/28/03 5D. a license to use ublic sidewalk for outdoor restaurant seatin - A. REFERENCE AND BACKGROUND: B. Crostini's Grille is seeking approval from the :ity to allow use of the sidewalk along Locust Street for outdoor seating that can be used by the res allrant during the summer months. Typically outdoor seating is allowed to occur on decks (I' patios for the serving of food and/or liquor, and is currently done at J.P. 's and also at Hawk's Ba. The difference here is that the only area available adjacent to the restaurant that can be used out oors would be on the city sidewalk, thus requiring approval from the City to do so. In discussing this arrangement with the Liquo Control Division, the serving of liquor outside of the facility in olltdoor seating is allowed provided the City is okay with this arrangement. The Liquor Control Division allows the sale at outdoor se, ting providing the seating is adjacent to the restaurant in question. In discussing this arra gement with our insurance carrier, it was recommended that the City require the restaurent liquor liability insurance to also name the City as an additional insured to protect the City from (ny liability for allowing sales to occur on public right-of-way. Normally outdoor sales are handled as a part o' the conditional use permit or handled administratively, but in this case since the applicant is asking to use the City's sidewalk right-of-way for their restaurant and liquor s~1 s, it should have the approval of the City Council first. The Design ^dvisory Team has reviewe the proposal with the restaurant owner and did not have a problem with it, actually encouraging t is type of activity in the downtown area. Since the DAT Committee cannot actually approve this Ise, it now becomes a City Council decision. Although we do not have a layout design for C uncil to review, it is suggested that any approval require that the area being set aside for outdoo service have some type of a fence or barrier such as decorative rope to separate the remaining si ewalk area fi:om the restaurant tables. ALTERNATIVE ACTIONS: I. Approve the issuance ofa license to all w Crostini's Grille to utilize a portion of the sidewalk along Locust Street for f()od s rvice and liquor sales contingent upon: A. A fenced or roped off'area to se arate the tablesji-om the remaining sidewalk B. The City olMonticello being na ned as an additional insured on the liquor liahility policyfrom Crostini's. 2. Do not allow use of right-of-way for ou door sales. . . . Council Agenda - 4/28/03 c. STAFF RECOMMENDATION: In an effort to promote a pedestrian friendly owntown area, DA T has reviewed the concept and did not have a problem with outdoor seating aking place on this sidewalk. This sidewalk area is wider than normal and should be ablc to adec uately allow for foot tratTic and additional seating for the restaurant. Assuming that Crostini's can rovide the appropriate liability insurance coverage for the City, it is recommended that the COlin 'il grant a license allowing use of our sidewalk area for outdoor seating. D. SUPPORTING DATA: None. . . ..... - SF:. Consideration of A roval of Chan e 04C), (WSB) Council Agenda - 5/18/03 A. REFERENCE AND BACKGROU 0: A This is an adnlinistrative change order t document the change in planned quantities, as requested by Mn/DOT. This change order provides for payment to he contractor li.lr additional work pertCmncd on contract items with a planned quantity uliL including: common excavation, subgrade excavation, seeding and disk anchoring. There is no contract price increase associat d with this change order. LL ALTERNATIVE ACTIONS: J. The first altcrnative would be to app 'ove Change Order No. 20. 2. The second alternative would be to (. eny approval or Change Ordcr No. 20. L STAFF RECOMMENDATION: It is the recommendation of the City Engine r that the City Council approve Change Order No. 20. Mn/DOT has stated that this administrative change order is necessary prior to the release orthe remaining design fee to the Cit of Monticello. Do- SUPPORTING DATA: Change Order No. 20 (' '.DOC! 1.r\'II~ 1\1.).\ wr-.,'( ;\/"Oc..\LS 1\ l"FJ\1I1\I\IO\JTI( 'H.J.O c\erl. /\{;(.:r-<D:\ ITI:.\I DOC . March 17, 2003 Honorable Mayor and City Council City of Monticello PO Box 1147 Monticello, MN 55362 Re: Change Order No. 20 'I'll 25 Improvements (S.P. 8605-40) City Project No. 96-04C WSB Project NO.1 033-0 I 0 Dear Mayor and Council Members: Please find enclosed Change Order No. 20 ror the bove-referenced project reflecting changes to the contract as follows: This Change Order provides for payment to the contractor ror additional work performed on contract items with a planned quantity unit, including: common excavation, subgrade excavation, seeding and disk anchoring. . The contractor agrees that the negotiated pri es include all costs to expedite this pot1ion or the contract, including the applicable rnarkup, as provided in contract provisions of Mn/DOT Speci IIcation 1904. This is an administrative change order to document he change in planned quantities, as requested by Mn/DOT. Your approval is requested on Chanl?e Order No. 20. Please call me at (763) 287- 7177 if you have questions Sincerely, WSB (.~ Associates, 1/1(', Ronald 8. Bray, P,E. Project Manager Enclosure c: Jim Labo. Mn/DOT, SI. Cloud John Simola, City of Monticello Rick Wolfsteller. City of Monticello Leo Olmscheid. WSB Field Oftlce . Sf:: C:\DnClllllt:llIS and SL'lIings\da\\ Il!,.\Lo\.;al Scttillg.'i\T~nlp\(;o-10R~\' ItU\ pd CHANGE ORDER NO. 20 T.H. 25 Improvement, City of Monticello, MN S.P. 8605-40, City Project No. 96-04C Owner: City of Monticello Date of Issuance: March 12, 2003 Contractor: Buffalo Bituminous, Inc. Engineer: WSB & Associates, Inc. You are directed to make the following changes in the Contract Document d scription: Due to several changes which were made at the discret on of the engineer including cross-section revision , additional/modified areas that were disturbed outside of the construction limits; and a large amount of unsuitable material encountered in the existing roadway, it is hereby mutually agreed in accordance with th Provisions of 1901, that the following planned quantities: 2105.501 Common Excavation (P), 2105.507 Subgrade Excavation (P), 2575.501 Seeding (P) , and 2575.519 Disk Anchoring (P) are revised as follows: 2105.501 Common Excavation The common excavation has changed from a planned q antity of 63,353 m3 to a final revised planned quantity of 72,288m3. 2105.507 Subgrade Excavation The subgrade excavation has changed from a planned uantity of 48,755 m3 to a final revised planned quantity of 37,615m3. 2575.501 Seeding The seeding has changed from a planned quantity of 5. 2 ha to a final revised planned quantity of 5.48 ha. 2575.519 Disk Anchoring The disk anchoring has changed from a planned quantit of 4.47 ha to a final revised planned quantity of 5. 2 ha. Notes and computations were submitted with the final. Payment for said work will be in accordance with the con ract prices, except where noted otherwise. CHANGE IN CONTRACT PRICE HANGE IN CONTRACT TIME $5,448,00000 riginal Contract Time: 06/21/00 $331,139.13 et Change from Previous Change Orders: None $5,779,139.13 ontract Time Prior to This Change Order: 06/21/00 $0.00 et Increase of Change Order: None $5,779,13913 ontract Time With Approved Change Orders: 06/21/00 Original Contract Price: Previous Change Orders: NO.1 to 19: Contract Price Prior to This Change Order: (1) Net Increase of This Change Order: Contract Price With All Approved Change Orders: Recommended By: Ronald B. Bray, PE (Officer of Contractor) WSB & Associates Inc. Engineer Buffalo Bituminous, Inc. Approved By: Approved By Date of Council Action: MnlDOT City Admi istrator SF: (' "[)(IUlI1l1.'I11.'i ;1mJ S,~llil1gs'd;'}\\tl.I,.\l.tk.~al SClling~\T~:111p\(('-.2(IKI.:\ \\ pd . . SF. Consideration of a A. REFERENCE AND BACKGROIJNI>: Council Agenda - 4/28/03 As part of the I lome Depot/Retail f3 developmcnt project, five acres of city property needs to bc acquired by Homc Depot for the project to c ntinue. The City of Monticello owns the five acres at the southwest corner of the proposed project adjacent to Cedar Street and Dundas Road. Birchland Developmcnt Company, landbrok r for this project, has requested a purchase agreement be approved in accordance with negotiations that have taken place with city staff When the Home Depot project was first bein discusscd, the direction from the City Council at that time was that the City would be agreeable to'clling the five acres we owned to make this project work. It was the consensus of the Council tl1' t staff should do what was necessary makc the land available for the development in an c1Tort to see the project become a reality. A proposal has becn negotiated with Birchlan Development. who will be transferring all property acquisitions to Home Depot Inc. that is summ riz~d as follows: ]. City will agree to sell the five acre par cl to Homc Depot for $325,000. 2. City would agree to pay the remaining special assessments that exist Il.)r a previous Dundas Road improvement in the amount of $ 4,000. 3. The City will agree to accept to $75,00 as payment for deferred assessments that have bcen previously levied for Dundas Roa improvements on the adjacent parcel I lome Depot is acquiring fronl John Lundsten, north of Dundas Road. 4. City agrees to rcconstruct Cedar Street ith curb and gutter and street lighting, improve Dundas Road with bituminous paving a d also in the future, Oakwood Drive (CR I] 7), at an assessable cost not to exceed $660,0 O. The terms and conditions outlined above are co tingent upon completion of a developmcnt agreement ror the improvement of Home Depot and Retail B site by September 1,2003. In order to keep the project moving tllong as quickly as ossible, the Council is asked to approve entering into a purchase agreement with 13irchland Dcve opment/Home Depot for the sale of the property as outlined above. B. ALTERNATIVE ACTIONS: ...... -.-.. 1. Approve the sale of the five acre parcel owned by the City at the intersection of Cedar Street and Dundas Road to 8irchland De elopment/Home Depot under the terms and conditions outlined above. . 2. Do not approve the sale at this time. C. STAFF RECOMMENDATION: Council Agenda - 4/28/03 City staff is certainly excited to see this proj ct move forward and recommends that the Council approves the sale as outlined. I believe the crms ancl conditions that were negotiated provide a fair return f()r the City on the live acre parcel an show a commitment to Home Depot that we want to do what is necessary to see this project beeo1e a reality. While the property may be worth more per square foot than it is being sold fl)r, whel you look at the entire project that this parcel will create, it should really be a benelit for the en ire city, county and school district in the future. D. SUPPORTING DATA: CDPY of purchase agreement. Map of property being sold. . . 2 . . . SE AGREEMENT THIS PURCHASE AGREEMENT ("Agree ent") is made and entered into as of March _,2003, between CITY OF MONTICELLO, a innesota municipal corporation, whose Tax 1.D. Number is 41-6005385 ("Seller") and Birchl nd Development Company, whose Tax 1.D. Number is ("Buyer"). In consideration of this Agreement, Seller d Buyer agree as follows: 1. Definitions and Exhibits. 1.1 Definitions. For purposes of this greement, each of the following terms, when used herein with an initial capital letter, will have t e meaning ascribed to it as follows: 1.1.1 Agreement. This Purchase greement. 1.1.2 Buver's Closing Documents The Buyer's closing documents described in Section 6.2. 1.1.3 Closing. The closing and onsummation of the purchase and sale of the Property as described in Section 6. 1.1.4 Closing Date. The date on hich the Closing actually occurs as provided in Section 6. 1.1.5 Contract Date. The date u on which this Agreement is deemed effective, which is the date this Agreement has been execute by both Seller and Buyer. 1.1.6 Land. All those tracts or parcels of land described in Exhibit A attached hereto. 1.1. 7 Permitted Title Exceptions. Those title matters which are not objected to by Buyer in accordance with Section 8.2. 1.1.8 Phase 1. The Phase I Envir omental Site Assessment described in Section 4.1. 1.1.9 Property. All of the Selle's right, title and interest in, to and under the Land. 1.1.10 Purchase Price. The purc ase price for the Property described in Section 3. 1.1.11 Seller's C10sin Documen s. The Seller's closing documents described in Section 6.1. s~ . . . Section 8.1.1. 1.1.12 Title Commitment. The co mitment to issue the Title Policy described in 1.1.13 Title Company. Monticello, Minnesota 55362. Title, Inc., 113 Broadway Street West, 1.1.14 Title Objections. Buyer's tit e objections described in Section 8.2. 1.1.15 Title Policy. An American and Title Association (AL T A) Form B 1998 Owner's Title Insurance Policy for the Land issue by the Title Company for the full amount of the Purchase Price, subject only to the Permitted Ti Ie Exceptions. 1.2 exhibits: Exhibits. Attached hereto and inco orated into this Agreement are the following Exhibit A Exhibit B Legal Description of Land Well Disclosure 2. Purchase and Sale of the Property. Subject to and in accordance with the terms and provisions hereof, Seller agrees to sell to Bu er, and Buyer agrees to purchase from Seller, the Property. 3. Purchase Price and Manner of Pent. The total purchase price ("Purchase Price") for the Property is Three Hundred wenty-Five Thousand and No/100 Dollars ($325,000.00) paid in certified funds or by wire t ansfer of U.S. federal funds on-erbefure9-;OQ -a,ttr.-Gent:fltl:...:['ime-Bn the Date of Closing. 4. Buver's Contingencies. Buyer's 0 ligations under this Agreement are contingent upon Buyer's satisfaction with each of the followi g: 4.1 Environmental Assessment. As s on as possible after the Contract Date, Buyer shall obtain, at Buyer's expense, a Phase I Enviro mental Site Assessment (the "Phase I") of the Property, sufficient to meet the diligence require ents of federal and state law, certified to Buyer as of a current date (no earlier than the Contra t Date) evidencing conditions satisfactory to Buyer. Buyer shall promptly retain a qualified en ironmental scientist to conduct the Phase 1. If the Phase I reveals environmental conditions hich are in violation of the law, Buyer shall promptly deliver a copy of the report to Seller, and Seller may elect either of the following options: (a) proceed in good faith to remedy th environmental conditions; or (b) cancel this Agreement as provided by statute in which case eller shall reimburse Buyer for all expenses of the Phase I and Buyer shall assign all rights in an to the Phase I to Seller and Seller shall refund all Earnest Money paid by Buyer.~ller s all also exycuteall dgcuments neeessaIY..J;Q Q.9nlOnstC~lte nO.!I~rel ianfc holding Buyer hgrmles and .;;ball P~!y alL-,::ost~..rcquiIed tQ...certify the enviCQnmcnt~11 repor:Lto the Selke, 5. Seller's Contingencies. Seller's 0 ligations under this Agreement are contingent upon Seller's satisfaction with each of the follow'ng: 2 S1= . . . 5.1 None. 6. Closing. The scheduled Closing D te will be , 2003, unless the parties agree to an earlier date. The Closing will t e place at the office of Title Company or at such other place as may be agreed to. Seller will eliver possession of the Property to Buyer on the Date of Closing. 6.1 Seller's Closing Documents. On th Date of Closing, Seller will execute and/or deliver to Buyer the following (collectively, "Seller's Closing Documents"), all in form and content reasonably satisfactory to Buyer: 6.1.1 Deed. A Warranty Deed onveying the Property to Buyer, subject to buikling and zoning laws, orditlftRees,mstate--alldedefill-fegttlation~; und the Permitted Title Exceptions"" and stating there-are 6.1.2 Title Policy. A pro forma Title Policy, or a suitably marked up Title Commitment initialed by the Title Company obli ating the Title Company to issue the Title Policy to Buyer, in the form required by this Agree ent and as approved by Buyer. 6.1.3 Bring-down Certificate. Bring-down Certificate, stating that the representations and warranties are true and correct s of the Closing Date. 6.1.4 Seller's Affidavit. A Minne ota Uniform Conveyancing Blank Form No. 117-M Affidavit of Seller. 6.1.5 Non-Foreign Certificate. non-foreign certificate, properly executed, containing such information as is required by lnte al Revenue Code Section 1445(b)(2) and its regulations. 6.1.6 IRS Form. A Designation greement designating the Title Company as the "reporting person" for purposes of compl ing Internal Revenue Form 1099 and, if applicable, Internal Revenue Form 8594. 6.1.7 Other Documents. All othe documents reasonably determined by Buyer to be necessary to transfer the Property to Buyer fre and clear of all encumbrances. 6.2 Buyer's Closing Documents. On t e Date of Closing, Buyer will execute and/or deliver to Seller the following (collectively, "Bu er's Closing Documents"), all in form and content reasonably satisfactory to Seller: 6.2.1 Purchase Price. The Purcha e Price, by certified check or by wire transfer of U.S. federal funds, to be received in Title Co pany's trust account on or before 9:00 a.m. Central Time on the Date of Closing. 3 St . . . 6.2.2 IRS Form. A Designation A reement designating the Title Company as the "reporting person" for purposes of completi g Internal Revenue Form 1099 and, if applicable, Internal Revenue Form 8594. 6.2.3 Title Documents. Such affid vits of purchaser, certificates of real estate value or other documents as may be reasonably requ red by Title Company in order to record the Deed and issue the Title Policy required by this Agre ment. 7. Prorations. Seller and Buyer agree t the following prorations and allocations of costs regarding this Agreement: 7.1 Title Insurance and Closing Fee. Seller will pay all costs of the Title Commitment and the fees charged by the Title C mpany for any escrow required regarding Buyer's Title Objections. Buyer will pay the prem'um for the Title Policy and any additional premiums required for the issuance of any mortgage's title policy required by Buyer. Seller and Buyer will each pay !;2 of any reasonable and cu tomary closing fee, escrow fee or charge imposed by the Title Company. 7.2 Deed Tax. Seller will pay all state deed tax, and the agricultural preservation deed tax, if any, for recording the Deed to be deliv red by Seller under this Agreement. Buyer will pay all mortgage registry tax, and the agri ultural preservation deed tax on Buyer's mortgage deed, if any, for any mortgages placed on t e Property by Buyer. 7.3 Recording Costs. Seller will pay the ost of recording all documents necessary to place record title in the condition warranted by Selle in this Agreement. Buyer will pay the cost of recording the Deed and all other documents. 7.4 Real Estate Taxes and S ecial Assess ents. 7.4.1 Prior Years' Delin uent R al Estate Taxes and Delin uent S ecial Assessments. Delinquent real estate taxes payabl in years prior to the year of Closing and delinquent installments of special assessments ce ified for collection with real estate taxes payable in years prior to the year of Closing, to get er with penalty, interest and costs, shall be paid by Seller not later than the Date of Closing. SlIer will pay special assessments for Dundas Road in the amount of Fifty-Four Thousand Dollars ($54,000). 7.4.2 Real Estate Taxes Pa able i the Year of Closin. Real estate taxes payable in the year of Closing shall be prorated b tween Seller and Buyer on a calendar year basis to the Date of Closing and Buyer shall assume' nstallments not paid at Closing. Seller shall pay penalty, interest and costs on any delinquent i stallment of taxes and special assessments payable in the year of Closing. If Closing is delay d to a later year, real estate taxes payable in the year of Closing shall be prorated between Sell r and Buyer on a calendar year basis to the Date of Closing. 7.4.3 Tax Statements. If tax state ents for taxes payable in the year of Closing are not available on the Date of Closing, the amo nt to be used for Closing purposes shall be 4 s ~- . . . 102% ofthe prior year's taxes, and such amount sha 1 be adjusted upon receipt of tax statements for such year (in which case the party obligated to ay the adjustment shall pay it to the other party within 30 days of issuance of the tax statement ). 7.4.4 Deferred Real Estate Taxes. Seller shall pay on Date of Closing or provide for payment of any deferred real estate t xes (including "Green Acres" taxes under Minn. Stat. S 273.111) payment of which is required as a result of the Closing ofthis sale and the recording of the Deed. 7.4.5 Certified S ecial Assessment. All installments of special assessments certified for payment with the real estate taxes pay ble in the year of Closing shall be paid by Seller at Closing. Seller will pay special assessmen s for Dundas Road in the amount of Fifty- Four Thousand Dollars ($54,000). 7.4.6 Pending Special Assessments. Buyer shall provide for payment of special assessments pending as of the date of this Purchase greement for improvements that have been ordered by the City Council or other gove ental authorities as they pertain to the improvements of Cedar Street, Dundas Road and Oa wood Drive. 7.4.7 Deferred Special Assessments. Seller shall pay on the Date of Closing or provide for payment of any deferred special assessm nts payment of which is required as a result of the Closing of this sale and the recording of the D ed. 7.4.8 All Other Levied S ecial As essments. Seller shall pay on the Date of Closing all other special assessments levied as of the date of this Purchase Agreement. 7.4.9 Taxes and S ecial Assessme ts in the Years Followin Closin. Buyer shall pay real estate taxes payable in the years fo lowing Closing and thereafter and special assessments payable therewith, the payment of whi h is not otherwise provided herein. Seller makes no representation concerning the amount of future real estate taxes or of future special assessments. 7.5 Attorneys' Fees. Each of the parties ill pay its own attorneys' fees, except that a party defaulting under this Agreement or any C osing Document will pay the reasonable attorneys' fees and court costs incurred by the on-defaulting party in enforcing its rights regarding such default. 7.6 Other Costs. All other operating cos s of the Property will be allocated between Seller and Buyer as of the Closing Date, so that Sell r pays that part of such other operating costs attributable to the period before the Closing Dat , and Buyer pays that part of such other operating costs attributable to the period on and aft r the Closing Date. Each party will pay any other costs customarily paid by such party pursuant t local practice. 8. Title Examination. Title Examinatio will be conducted as follows: 5 s \;. . 8.1 Seller's Title Evidence. Seller ., 's--seefl----a~ssffile-af.leF---the Contract .Q.ate,.~.hall. pay the cost incurredkBuycr fur th.. Buyer obtaining--fumislt-the--the following (collectively, "Title Evidence") te-BuYef: 8.1.1 Title Commitment. A Com itment for Title Insurance including proper searches covering bankruptcies and state and fede al judgments, federal court judgment liens in favor ofthe U.S., liens, and levied and pending spe ial assessments. 8.2 Buyer's Title Objections. Buyer sh II have 10 business days after receipt of the Title Commitment to provide Seller with a copy of the Commitment and written objections. Buyer shall be deemed to have waived any title 0 ~ections not made within the 10-day period above, except that this shall not operate as a waiv r of Seller's covenant to deliver a Warranty Deed. If Buyer obtains title insurance, Buyer is not waiving the right to obtain a good and marketable title of record from Seller. 8.3 Title Corrections and Title Remedie. Seller shall have 60 days from receipt of Buyer's written title objections to make title market ble. Upon receipt of Buyer's title objections, Seller shall, within ten (10) business days, notif Buyer of Seller's intention to make title marketable within the 60-day period. Liens or enc mbrances for liquidated amounts that can be released by payment or escrow from proceeds of cI sing shall not delay the closing. Cure of the defects by Seller shall be reasonable, diligent an prompt. Pending correction of title, all payments required herein and the Closing shall be p stponed. . 8.3.1 If notice is given and Seller makes title marketable, then upon presentation to Buyer and proposed lender of documentation esta lishing that title has been made marketable, and if not objected to in the same time and manne as the original title objections, the closing shall take place within ten (10) business days or 0 the scheduled Closing Date, whichever is later. 8.3.2 If notice is given and Sell r proceeds in good faith to make title marketable but the 60 day period expires withou title being made marketable, Buyer may declare this Purchase Agreement void by notice 0 Seller, neither party shall be liable for damages hereunder to the other, and all Earnest Mon y shall be refunded to Buyer. 8.3.3 If Seller does not give notice of intention to make title marketable, or if notice is given but the 60 day period expires withou title being made marketable due to Seller's failure to proceed in good faith, Buyer's exclusi e remedy is rescission of this Purchase Agreement by notice as provided herein, in which ca e all Earnest Money paid shall be refunded to Buyer. 8.3.4 Iftitle is marketable, or is ma e marketable as provided herein, and Buyer defaults in any of the agreements herein, Seller's ex lusive remedy is to cancel this contract as provided by statute and retain all payments made here nder as liquidated damages. - 8.3.5 If title is marketable, or is mad marketable as provided herein, and Seller defaults in any of the agreements herein, Buyer's exc usive remedy is rescission of this Purchase - 6 S~ . . . Agreement by notice as provided herein, in which ase all Earnest Money paid shall be refunded to Buyer. 9. Condition of Propertv. Other tha the warranties and representations made in Section 10, the Property is being sold "AS IS" a d "WHERE IS" with no express or implied representations or warranties by Seller as to hysical conditions, quality of construction, workmanship, or fitness for any particular purpose. 10. Re resentations and Warranties represents and warrants to Buyer as follows: Seller. As of the Contract Date, Seller 10.1 Authority. Seller is duly formed nd is in good standing under the laws of the State of Minnesota; Seller has the requisite powe and authority to enter into and perform this Agreement and those Seller's Closing Document to be signed by it; this Agreement and such documents have been duly authorized by all neces ary action on the part of Seller and have been or will be as of the Closing Date, as applicable, duly executed and delivered; such execution, delivery and performance by Seller of such do uments do not conflict with or result in a violation of Seller's governing documents, or y judgment, order, or decree of any court or arbiter to which Seller is a party; such documents e valid and binding obligations of Seller, and are enforceable in accordance with their terms. 10.2 Title to Land. Seller owns the Lan free and clear of all encumbrances except the Permitted Title Exceptions. 10.3 Utilities. Intentionally left blank. 10.4 Certificates of Occupancv. ally left blank. 10.5 Taxes and Assessments. has not made any commitment to any governmental authority, utility company, scho 1 board, church or other religious body, homeowner or homeowner's association or any ther organization, group or individual relating to the Property which would impose an obligati n upon Seller or its successors or assigns to make any contributions or dedications of money r land, or to construct, install or maintain any improvements of a public or private nature as part of the Property or upon separate lands. To the best of Seller's knowledge, no governmental aut ority has imposed any requirement that Seller pay, directly or indirectly, any special fees or co ributions or incur any expenses or obligations in connection with the development of the Prope y or any portion thereof, other than any regular and nondiscriminatory local real estate or school t xes assessed against the Property. No federal, state or local taxing authority has asserted any t x deficiency, lien, interest or penalty, special assessment or other assessment against the Prope y or Seller which has not been paid; and there is no pending audit or inquiry from any federal, state or local taxing authority or other matter relating to the Property or Seller of which Seller has received notice which reasonably may be expected to result in a tax deficiency, lien, i terest, penalty, special assessment or other assessment against the Property or Seller. 7 s~" . . . 10.6 Hazardous Substances. To the be t of Seller's knowledge, there have been no acts or occurrences upon the Property that have c used or could cause hazardous substances or petroleum products to be released or discharged in 0 the subsoil or ground water of the Property. To the best of Seller's knowledge, the Property is ree of hazardous substances and is not subject to any "superfund" type liens or claims by gov mmental regulatory agencies or third parties arising from the release or threatened release of hazardous substances in, on, or about the Property. 10.7 No Rights to Purchase. Seller is he sole owner of the Property and no party, other than Buyer, has any right, agreement, com itment, option, right of first refusal or any other agreement, whether oral or written, with res ect to the purchase, assignment or transfer of all of any portion of the Property. To the best of eller's knowledge, no party other than Seller has or claims any unrecorded or undisclosed legal r equitable interest in the Property. 10.8 Seller's Defaults. To the best owledge of Seller, Seller is not 10 default concerning any of its obligations or liabilities regar ing the Property. 10.9 Non-Foreign Status. Seller is n t a "foreign person," "foreign partnership," "foreign trust" or foreign estate" as those terms are defined in Section 1445 of the Internal Revenue Code of 1986, as amended and the regula ions promulgated thereto. 10.10 Wells. Seller knows of a well on t e property that has been sealed capped as set forth in Exhibit B= hereto.. This representation i intended to satisfy the requirements of Minn. Stat. S 1031. 10.11 Storage Tanks. To the best of SlIer's knowledge, no "above ground storage tanks" or "underground tanks" within the meaning of Minn. Stat. ~ 116.46 are located in or about the Property, or have been located under, in or a out the Property and have subsequently been removed or filled. 10.12 Individual Sewa e Treatment S s ems. Solely for purposes of satisfying the requirements of Minn. Stat. S 115.55, there is no "individual sewage treatment system" within the meaning of that statute on or serving the Prope y. 10.13 Prorations. To the best of Se]]er's nowledge, the information to be furnished by Se]]er on which the computation of prorations is ased wi]] be true, correct and complete in all material respects. 10.14 No Litigation. Seller has not re eived notice of (a) any actual or pending litigation or proceeding by any organization, pers n, individual or governmental agency against Seller with respect to the Property or against the Property, (b) any violation of the Property's compliance with applicable fire safety laws, buildi g code ordinances, zoning ordinances or any similar statutes, ordinances, laws, rules or regula ions, (c) any condition, defect or inadequacy which, if not corrected, would result in the termi ation of, or increase in the cost of, insurance coverage, (d) any proceedings which could cause he change, redefinition or other modification of the zoning classifications or of other legal requi ements applicable to the Property or any part 8 s \=- . . . thereof, or ( e) any pending or threatened conde nation proceeding that would affect the Property. 10.15 Boundar Line Access Restrictions and Lien Warranties. Seller warrants that buildings on adjoining real property, if any, are ntirely outside the boundary lines of the Property. Seller warrants that there is a right of a cess to the Property from a public right or way. Seller warrants that there has been no labor or aterial furnished to the Property for which payment has not been made. Seller warrants th t there are no present violations of any restrictions relating to the use or improvement of the Property. 10.16 Miscellaneous. It is a condition of C osing that the representations and warranties contained in this Section 10 are true and correct at Closing and Seller will reaffirm these representations and warranties at Closing in the ring-down Certificate required by Section 6.1.3. In the event that Seller or Buyer learns th t any of said representations or warranties becomes inaccurate between the Contract Date d the Closing Date, Seller or Buyer will immediately notify the other party in writing of suc change. If such change is adverse to Buyer, Seller will then use its good faith efforts to cure uch change after giving or receiving notice thereof as required herein. The Closing Date will be automatically extended in order to allow Seller to cure such change. In the event Seller so c res such change, this Agreement will remain in full force and effect. If Seller is unable to cure such change, Buyer may either (a) terminate this Agreement by written notice to Seller, in whic case the Earnest Money will be returned to Buyer and the parties will have no further rights or bligations hereunder, except for those which expressly survive such termination, or (b) waive uch right to terminate and proceed with the transaction pursuant to the remaining terms and onditions of this Agreement. In the event Buyer elections option (b) in the preceding sentenc or in the event Buyer elects to close with the knowledge that a representation or warranty of SIler herein which was the subject of a notice pursuant to this Section 10.16 is untrue or incorr ct, such representation and warranty will be deemed to be automatically amended to reflect sai change. The representations and warranties contained in this Section 10 will survive the Clo ing, but terminate one year after the Closing Date, unless Buyer serves notice of a claim on Sel er on or before the expiration of said one year period. Seller will indemnify Buyer, its successor and assigns, against, and will hold Buyer, its successors and assigns, harmless from, anyexpens s or damages, including reasonable attorneys' fees and remediation costs, that Buyer incurs ecause of the breach of any of the above representations and warranties, whether such brea h is discovered before or after Closing. 11. Re resentations and Warranties Bu er. Buyer represents and warrants to Seller that Buyer is duly formed and is in g od standing under the laws of the State of Minnesota; that Buyer is duly qualified to transac business in the State of Minnesota; that Buyer has the requisite power and authority to enter nto this Agreement and the Buyer's Closing Documents signed by it; this Agreement and su h documents have been, or will be as of the Closing Date, as applicable, duly authorized by all necessary action on the part of Buyer and have been, or will be as of the Closing Date, as a plicable, duly executed and delivered; that the execution, delivery and performance by Buyer 0 such documents do not conflict with or result in violation of Buyer's governing documents or any judgment, order or decree of any court or arbiter to which Buyer is a party; such docume ts are valid and binding obligations of Buyer, and are enforceable in accordance with their terms. The representations and warranties 'C' ,:;> t" . . . contained in this Section 11 will survive the Closin , but terminate one year after the Closing Date, unless Seller serves notice of a claim on Buyer on or before the expiration of said one year period. Buyer will indemnify Seller, its successors a d assigns, against, and will hold Seller, its successors and assigns, harmless from, any expenses or damages, including reasonable attorneys' fees, that Seller incurs because of the breach of any f the above representations and warranties, whether such breach is discovered before or after Cl sing. Consummation of this Agreement by Seller with knowledge of any such breach by Buy will not constitute a waiver or release by Seller of any claims due to such breach. 12. Conditions Precedent to Closing. B er's obligation to proceed to Closing under this Agreement is subject to the following condition precedent: 12.1 Seller will have performed and satis ed each and all of Seller's obligations under this Agreement; 12.2 Each and all of Seller's representati s and warranties set forth in this Agreement will be true and correct on the Contract Date and on the Closing Date; 12.3 Seller will deliver title to Buyer in condition that enables the Title Company to deliver the Title Policy in accordance with Section .1.15; and 12.4 All contingencies set forth in Sectio 4 are satisfied. In the event any of the foregoing conditio s are not satisfied on the Closing Date, Buyer will have no obligation to proceed to Closing and unless Buyer delivers written notice to Seller that Buyer has waived any unsatisfied condition nd will proceed to Closing, this Agreement, upon notice from Buyer to Seller, will cease and erminate, and the Earnest Money, if any, will be returned and paid to Buyer. Notwithstandin the foregoing, nothing contained herein will waive or diminish any right or remedy Buyer ay have for Seller's default or breach of this Agreement. 13. Damage. Ifthe Property is substa tially damaged before Closing, this Agreement shall terminate and the Earnest Money shall be efunded to Buyer. If the Property is damaged materially but less than substantially prior to C osing, Buyer may rescind this Agreement by notice to Seller within 21 days after Seller notifi s Buyer of such damage, during which 21-day period Buyer may inspect the Property, and in t e event of such rescission, the Earnest Money shall be refunded to Buyer. 14. Condemnation. If, prior to t e Closing, eminent domain proceedings are commenced against all or any material part of t e Property, Seller will immediately give notice to Buyer of such fact, and, at Buyer's option (to be exercised within 30 days after Seller's notice), this Agreement will terminate, in which event neither party will have further obligations under this Agreement, and the Earnest Money ill be refunded to Buyer. If Buyer fails to give such notice then there will be no reduction in th purchase Price, and Seller will assign to Buyer at the Closing all of Seller's right, title and int rest in and to any award made or to be made in the condemnation proceedings. Prior to the Clo ing, Seller will not designate counsel, appear in, o 'S\- . . . or otherwise take any action with respect to the cond mnation proceedings without Buyer's prior written consent. 15. Mutual Indemnification. Seller will i demnify and hold Buyer harmless from all liabilities (including reasonable attorneys' fees in de nding against claims) arising out of claims by third parties relating to acts or occurrences on, at r with respect to the Property which occur prior to the Closing, unless such claims relate to acts by Buyer or its agents. Buyer will indemnify and hold Seller hannless from all liabilit es (including reasonable attorneys' fees in defending against claims) arising out of claims by thi d parties relating to acts or occurrences on, at or with respect to the Property which occur on or fter the Closing unless such claims relate to acts by Seller or its agents. 16. Restriction On Assi nment I No Suc ession In Interest. Neither party may sell, assign, or convey, or enter into an agreement to sell assign or convey that party's rights in this Purchase Agreement without the express written c nsent of the other party. Scl1crcxprcs~J.Y consents to the assignment of this Agrecm~ntb Buyer to The Bome Depot. Inc,_Unless the express written consent is obtained, this agreement i not binding upon the assigns of Seller and Buyer. This agreement is not binding upon and shal not inure to the benefit of the successors of Seller and of Buyer. 17. Survival. The warranties and represe tations contained herein will survive and be enforceable after the Closing as provided in Sectio s 10 and 11. All of the other terms of this Agreement will survive the Closing. 18. Notices. Any notice required or pe itted hereunder will be given if delivered by personal delivery upon an authorized representativ of a party hereto; or if mailed by United States registered or certified mail, upon receipt req ested, postage prepaid; or if transmitted by facsimile copy followed by mailed notice; or if dep sited cost paid with a nationally recognized overnight courier, properly addressed as follows: If to Seller: City of Montic 110 Attn: Rick W 0 fsteller, City Administrator 505 Walnut St eet, Suite 1 Monticello, 55362-8831 Telephone: 76 -295-2711 Fax: 763-295- 404 With Copy to: Matthew K. B okl, Esq. Campbell Knu son, P A 1380 Corporat Center Curve, Suite 317 Eagan, MN 55121 Email: mbroklck-Iaw.com Telephone: 65 -452-5000 Fax: 651-452- 550 11 s\=- . If to Buyer: Birchland Dcv 10 mcnt Company "__m__,,,__,,_,,___182Q2 Minn.9to 1m 1~9uI9varQ,Jiuitc..#~ mWayzat~~N 5391 With Copy to: Notices will be deemed effective on the e rlier of the date of receipt or the date of deposit, as aforesaid; provided, however, that if not ce is given by deposit, the time for response to any notice by the other party will start running 0 e business day after any such deposit. Any party may change its address for the service of nor ce by giving notice of such change ten days before the effective date of such change. 19. Miscellaneous. 19.1 Captions. The paragraph headings r captions appearing in this Agreement are for convenience only, are not a part of this A reement and are not to be considered in interpreting this Agreement. 19.2 Entire Agreement Modification. This written Agreement constitutes the complete agreement between the parties and sup rsedes any prior oral or written agreements between the parties regarding the Property. The e are no verbal agreements that change this Agreement and no waiver of any of its terms will b effective unless in a writing executed by the parties. 19.4 No Waiver. Neither the failure of ither party to exercise any power given such party hereunder or to insist upon strict compli ce by the other party with its obligations hereunder, nor any custom or practices of the parti s at variance with the terms hereof constitutes a waiver of either party's right to demand exact co pliance with the terms hereof. . 19.3 Controlling Law. This Agreement as been made under the laws of the State of Minnesota, and such laws will control its interpreta ion. 19.5 Amendments. No amendment to t is Agreement will be binding on either of the parties hereto unless such amendment is in writi g and is executed by the party against whom enforcement of such amendment is.sought. 19.6 Date for Performance. Ifthe time period by which any right, option or election provided under this Agreement must be exercise, or by which any act required hereunder must be performed, or by which the Closing must be eld, expires on a Saturday, Sunday or legal or bank holiday, then such time period will be auto atically extended through the close of business on the next regularly scheduled business day. 19.7 Recording. Seller and Buyer will not record this Agreement or a short-form of this Agreement without the consent of the other p y. . 1 5~ . . 19.8 Counterparts. This Agreement may b executed in counterparts, in which case all such counterparts will constitute one and the same a reement; however, this Agreement shall not become binding upon any party unless and until exe uted (whether or not in counterpart) by all the parties. Telecopy or facsimile signatures by the arties will be regarded as valid and binding signatures ofthe parties. 19.9 Time of the Essence. Time is of th essence of this Agreement and every term and condition hereof. 19.10 Severability. This Agreement is int nded to be performed in accordance with, and only to the extend permitted by, all applicable 1 ws, ordinances, rules and regulations, and is intended, and will for all purposes be deemed to b , a single, integrated document setting forth all of the agreements and understandings of th parties hereto, and superseding all prior negotiations, understandings and agreements of su h parties. If any term or provision of this Agreement or the application thereof to any person or circumstance is, for any reason and to any extent, held to be invalid or unenforceable, then s ch term or provision will be ignored, and to the maximum extent possible, this Agreement will continue in full force and effect, but without giving effect to such term or provision. 20. Access Prior to Closing. By this A reement, Buyer does not acquire any right of possession of the Property nor does Buyer acquire ny right of entry, license, or easement. Seller wi+l--consent~ to a".-ease--by-ease-~' entry r Buyer and/or Buyer's agents, surveyors, engineers, and site evaluators for testing, measuri g, and evaluating purposes provided that the following conditions are met: A. There shall be no crop or tre damage. B. There shall be no excavatin or earth-moving and no tree removalunlcss__ __.__.___JrioL\yrittenjillPruval is gbt .ll}fd (rom SelIg[' ~ 'There shall be no entry ot....lli rkipg ofhcayy machinery on the landllnless prior written approval is obt ined from Sell~r. D.cG. Buyer's independent contra tors (surveyors, engineers, and site evaluators, etc.) shall, prior to entry on the land, deli er to Seller proof of independent contract with Buyer and a waiver of lien rights in a 1'0 satisfactory to Seller. Buyer shall indemnify and hold Seller harmless from any and all liens, claims, liabilities or charges incurred or caused by Buyer's contracts ith surveyors, engineers, and site evaluators, which indemnity shall include any lawyer's fee, costs or disbursements incurred by Seller in any defense thereof. . 13 'S~ . . . 21. Assessments on adiacent properties. 21.1 Seller agrees to reduce the deferred ssessments outstanding on the adjacent 15 acre parcel owned by John Lundsten from $129,000 to $75,000 Dollars. These assessments are for the Dundas Road improvements previously co structed. This reduction in assessments is contingent upon a Development Agreement being e ered into for the Home Depot Development by September 1,2003 and upon street improvements commencing in the year 2003. 21.2 Seller agrees to cap the improveme t costs to be assessed against the adjoining Home Depot development parcels for the Cedar treet, Dundas Road, and Oakwood Street improvements at no more than $660,000.00. This mount includes the lighting on Cedar Street. This cap is contingent upon a Development Agree ent being entered into for the Home Depot Development by September 1, 2003 and upon st eet improvements commencing in the year 2003. 22. Retention of Right-of-Way. Seller r tains an easement or fee title for the right-of- way necessary to realign Cedar Street at Dun as Road intersection. The specific legal description for the re-alignment will be determined rior to closing. BIRC LAND DEVELOPMENT COMPANY By: Its: SELL R: CITY OF MONTICELLO By: Bruce Thielen, Mayor By: Rick W olfsteller, City Administrator 14 5Y . EXHIBIT LEGAL DESC IPTION Real property situated in Wright County, Mi esota, legally described as follows: . . 5 ST- ;. . ;! ',. '.I . "\J1 ....fl. ',ii .... ~,'\ ~...~ "'I'~:"~.:' :il)\,,;:;:g_'~\1.:;\"'lrl~ .., ,",\!!;l/tj-':}-~~' ..-~;;,1"'.. )!.LI7~~,~ "":4fi:27 ,,"w. "";"''''~'. UNCHECI<ED PLAT SUS,I[CT TO CHANC,E REV. 2/14/03 -- -- I I I I I I I I I ----~ :i! n, :J: o ~ t:) ~ o -t ~ t:) tJ -- ::::! o <: . @ P" I ~~ r '~I H ~4F d] I. ~~ p . g:~"'t iON r- it' r .T I ~ I t1S ~ ~~i. ~H I '~~i iJI. I j : -l[ - ~~g I ." . I i1j;H ~l~i gcS I [ & 'l 5" "" !!1 I i~i I -"J' I ~ 'il' r , r:l ~;i J to . ," S I i l~ :<: ~ /----. .'-' *~ .. ~': ~ : ' II ):;. ~ ~z ~~ ~B ,. ;= , ~ 8 [ ~ \ '" lal ~~ o~ i ~ 9 8 -- ~~~ ..\ :1: __ II '" /1f;-':--~' -- ~ "--:-... 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NO, 117 , .... _,\' / O,tKWOOD DRIVE ~ " ......" ,:91'~~~~'" / ~ ~ - r~<." .!oo'~,,~" ". ~.-:- ~,~ '~',::""I~...:7 _S~OO2?'.:... ~5~,' llAf:W!l!l1l llIllV!.' .."....... ".." \ .,,-;. -;-" ;-;;;;f'-"~" ./ - - I "', .., r '..""''''''''''''''.'''''''.''1'''''''' ".'- ---------L-~---l r--- I , I I ,-.. .... ,,,,,,,,, ,,,. ".... "'...- -..../ ~~ \ ~... 4- II-Ill I ~tl1zl'" <> '" I n D.~~ I I (;,~YW()()[) 1!-I[)\!qHlAL f',~.fw::l I ill ih I il~a ..\" I I .~, (t! ~1Cl~ I <:,~! \ -~I I I \. g.. I 1 \ ~ ~.;; I I r -- -- \ --.........j-- I I \) ------ ~:; ::1 -t;,';.. ~-...: 1':> ~ ('I t Il't ~ r-- fl) t>- S 1,4 TE r- l. -- ---- I I ----J r,tJ/ " ''"''/A: ,:f/G:..'", """A i' NO. .?s e f .-.-; I /'1' (') r' ;,; S6 I :i~ ~;i "'( / {i~ ;;\ i:~ ( ;;11-- 0 ~:lJ ...... ...... ~ t i .. Qo B if '-- '" ,/ ( \ . . . Council Agenda - 4/28/03 7. A. (RW) tel; 6-5 REFERENCE AND BACKGROND: The City Council is again asked to adopt a assessment roll fin utility billing accounts which are delinquent more than 60 days an to certify the assessment roll to the County Auditor for collection on next year's real estate taxes. The delinquent utility aecounts that are inc uded with the agenda are accounts that are at least 60 days past due and include all new elinquents fi-OI11 the last time we certified them. In addition to the delinquent amount the Council also previously approved the establishment of an administrative fee of $~ 0 per account that is added to each delinquent assessment. The amounts shown on the en losed delinquent utilities list include the additional $50 administration fee for the pr paration of the assessnlent roll. It is recommended that the delinquent aceo mts be put on an assessment roll fi)r certification at an interest rate of 6% as all wed by state statute. As in the past, if any accounts are paid within 30 days alter the a option of the assessment roll, they can be paid without the additional interest. After 30 da s, payments will he charged interest. B. ALTEI~NATIVE ACTIONS: 1. Adopt the assessment roll for the delinquent charges as presented. 2. Based on puhlie hearing input, adjus the assessment roll as required. C. STAFf<' RECOMMENDATION: It is staff recommendation that the Council' dopt the assessment roll as presented. All of the accounts are at least 60 days past due an have been gi yen proper notice of this assessment hearing and ample opportunity t pay the accounts in full. All utility accounts were notified that there would be an additiOl al $50 administrative fee attached to each outstanding balance if the account was not p id by 4:30 p.m. on April 7,2003. D. SUPPORTING nATA: · Copy of resolution adopting assessm nt roll · Complete listing of delinquent accou ts to be certified. . . CITY OF MO TICELLO RESOLlJTIO NO. 2003-22 RESOLUTION ADOPTIN ; ASSESSMENT ROLL FOR DELINQUENT U ILITY ACCOUNTS WHEREAS, pursuant to proper notice duly given s required by law, the Council has met and heard and passed upon all objections to the proposed as cssment fi)f delinquent utility account charges, NOW, THfREFORE, Bf IT RE)'OLVED BY l'H CfTY COUNCil- OF MONTICELLO, MINNESOTA: 1. Such proposed assessment, a copy of whi h is attachcd hereto and made a part hereot~ is hereby accepted and shall constitute the s ecial assessments against the parcels named herein, and each tract of land therein inclu ed is hereby found to be benefitted by the assessment levied against it Such assessment shall be payable in one ( ) annual installment payable on or before the first Monday in January 2004 and shall be r interest at the rate of 6 percent per annum from the date of the adoption of this asses ment resolution, To the first installment shall be added interest on the entire assess 1ent from the date of this resolution until December 31,2004, 2. 3. The owner or the property so assessed ma ,at any time prior to certification orthe assessment to the county auditor, pay the hole of the assessment on such property with interest accrued to the date of payme t, to the City Treasurer, except that no interest shall be charged if the entire assessment is paid within 30 days from the adoption of this resolution. 4. The City Administrator shall forthwith tra smit a certified duplicate of this assessment roll to the county auditor to be extended 0 the proper tax list of the county, and such assessment shall be collected and paid ov r in the same manner as other municipal taxes. Adopted by the City Council this 28th day of Ap iI, 2003. ATTEST: 8ru e Thielen, Mayor . Rick Wolfsteller, City Administrator ., . " 0' '" eo ,. ~r. I', " ,or. 0 0:; '" Q fii '5 ,. e< "' " r.. f~: ;'! '" ~ ::1 j ..... '-' .., " if; '" ,< '" >2 ,,' 8 . .S ~ " (') .." '" ~ 0 '.!' 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"l o.rl ~D I..D Cl 0 CJ n r- [-- 1-- -, .-< r-- 00 <.;(J ,..., , '! ,I .-~ ~!l ,1 ." E-< o E-< .-=l .,l @ ~ " " o ,.. ,', o n "~ ".' '" " ~ o '" ,,, '.0 E u (,j '" " '" '" r" o '" "' 1 . . . 8. A. REFERENCE AND HACKGROUN City Council Agenda ~ 4/28/03 ssmcnt roll for delin ucnt accounts ent roll to Coun Auditor. (C.S.) The City Council is asked to adopt an assessme 1t roll f(Jr accounts receivable bills which are delinquent more than 60 days and to certify the assessment roll to the County Auditor for collection on next 2004 real estate taxes if not paid within 30 days of this public hearing. It is recommended that the delinquent accounts be put on an assessment roll for certification in 2003 at an interest rate of 6% as allowed by state stat Ite. As in the past, if any accounts are paid within 30 days after the adoption of the assessment roll, tl ey can be paid without any additional interest. It is recommended that the delinquent account 1 r the Dan Mielke bill be put on an assessment roll for certification in 2004 at an interest rate of 6(i'(l as allowed by state statute. As in the past, if any accounts are paid within 30 days after the adoption of the assessment roll, they can be paid without any additional interest. It should be noted that ity staff has made numerous attempts to collect this bill which covers the conditional use permit an consulting fees for the Monticello Travel Center project. The original bill was sent out on July )4, 2002, and reminder notices were sent at different times over the past year. At Mr. Mielke's requ st, the city had WSB review the bill for accuracy. City Administrator Riek Wolfsteller met with r. Mielke on several occasions to explain and negotiate the payment of the bill. Supposedly, . tentative agreement was reached several months ago, but Mr. Mielke declined the offer. As there ap ears to be no other recourse, the city has decided to move this account to an assessment roll for coil ction with 2004 taxes. The total to be assessed is $13,865.48 and will he split against 4 of the pa cels in the Travel Center plat which received benefit from the development planning. B. AL TKRNA TIVE ACTIONS: I. Adopt the assessment roll f()r the delinq lent charges as presented. 2. Based on public hearing input, adjust th assessment roll as required. C. STAFF RECOMMENDATION: It is staff recommendation that the Council ado t the assessment roll as presented. All of the accounts are at least 60 days past due and have been givCl proper notice of this assessment hearing and ample opportunity to pay the accounts in full. D. SUPPORTING DATA: Copy of resolution adopting assessment roll; C'{ mplete listing of delinquent accounts to be certified. . . . CITY OF MON ICELLO RESOLUTION 2 03-23 RESOLUTION ADOPTING ASSESSMENT ROLL FOR DELlNQlJENT ACCOUNTS RECEIVABLE WHEREAS, pursuant to proper notice duly given as equired by law, the Council has met and heard and passed upon all objections to the proposed assessment for delinquent accounts receivable charges. NOW. THEREFORE. BE IT Rf,SOLVED BY TIlE C TY COUNCIL OF MONTlC'ELLO. MINNESOTA: I. Such proposed assessment, a copy of which 's attached hereto and made a part hereoC is hereby accepted and shall constitute the spec al assessments against the parcels named herein, and each tract of land therein included is her by found to be benefitted by the assessment levied against it. 2. Such assessment shall be payable in one (1) . nnual installment payable on or before the first Monday in January 2004 and shall bear inter st at the rate of 6 percent per annum from the date of the adoption of this assessment resol tion. To the first installment shall be added interest on the entire assessment from the dat ~ of this resolution until December 31, 2004. 3. The owner of the property so assessed may, . t any time prior to certification of the assessment to the county auditor, pay the whole of the as 'essment on such property with interest accrued to the date of payment, to the City ~rrcasurer, except that no interest shall be charged if the entire assessment is paid within 30 days fron the adoption of this resolution. 4. The City Administrator shall forthwith transl it a certified duplicate of this assessment roll to the county auditor to be extended on the proper t x list of the county, and such assessment shall be collected and paid over in the same manner a other municipal taxes. Adopted by the City Council this 28th day of April, 003. ATTEST: rucc Thielen, Mayor Rick Wolfsteller,City Administrator 8 . . . iii 0:: <C ~ W ...J al <C > W u w 0:: CJ) I- Z => o u U <C I- Z W => o ~ ...J W e C"') o o N ..- ..- ..- ..- "<t"<t "<t"<t 00 00 'f:I: 1"-1"- I'- l"- I'- I"- 1"-1"- Q) 00 00 () a> a> a> a> '0 > .5 .. .... s:: ~ :3 () () 0 i:: (J) (J) (J) (J) C1l .:::.:. ~ ~ ~ s:: Q) Q) Q) .!!! ;:: ~ ~ ~ ~ 0 C C C c ro rn rn ro 0 0 0 0 l- I- l- I- U U U U ... Qi Qi Qj Qj (.) > > > > I/) ~ ~ rn rn Q) ~ l- e l- I- I- ~ 1:: 1:: 1:: c 0 0 0 0 Q) ~ ~ ~ :2 c.. 0 ..- ..- ..- ..- ... a.. ~ ~ ~ ~ CD CD CD CD N l") "<t lD 0 0 0 "0 -l -l -l -l l"- I"- I'- ?"- M l") MM 1.O 1.O 1.Oc.D .... 1.O 1.O 1.O 1.O s:: '<t o::J:. '<t '<t :3 l") l") l") ri 0 tA- tA- tA- tA- E <C ... 0 0 00 Z N l") "<tlD 9 0 0 00 ..- ..- ..- ..- € 0 0 00 0 0 00 ro I I I co co co c.. l") l") MM 0 ..- ..- ..- ..- ... I I I I a.. lD lD lDlD lDlD lDlD ..- ..- ..- ..- co "<t lD c.o co M tA- ("") 0 0 N N r::! '<T III OJ ::2 cr -l Qj 0 ~ U) t- o z I- LU ::2 (f) (f) LU (f) (f) :3 LU 0 ":'S z S (3 g . . . 10. Council Agenda - 04/28/2003 Review of bids for Well No.5 located at 4 h Street Park and consideration of award of contract for construction. (J .S.) A. RF:FERENCF: ANn BACKGROUND: As previously discussed with the City Council. plans a d specifications were developed for a new well in the northeast corner ofthe 4th Street Park. Advertisen ents f()r Rids were placed in the local paper with the bids to be returned at 3 p.m. on Friday, April25, 20 3. The bids will notbe available for the drafting of this council agenda item but will be presented at Monday's Council Meeting. Original estimates for the cost of the well were in the n ighborhood of$75.000. It is our expectation that ifreasonablc bids are received we will move forward ith the designing of the pump house and pump to be placed on a council agenda in the future for appr val to advertise f()r bids. "I11e actual sununary of the bids received and a recomm ndation from the engineer, Liesch and Associates, will be provided at Monday evening's meeting. . . . 04/28/03 13:17 FAX 763 559 2202 ..- ~ LIE):(H 141002/007 LIESCH ASSOCIATES. INC. 13400 15TH AVENU NORTH MINNEAPOLIS. MN 5M41 7631489.3100 FAX: 7631489-31Q1 April 28, 2003 Honorable Mayor and City Council City of Monticello 505 Walnut Avenue ~onticello,~ 55362 RE: Bids for Well No. 5 Dear Mayor' and City Council: Liesch Associates has reviewed the bids for the c nstruction of municipal test/production well no. 5 and hereby reconnnends award to the low bidder, J. Traut Wells of Waite Park in the amount of$48,615.oo. Liesch has worked with Traut Wells on numerous municipal wells in the past and finds them to be competent in this type of well construction. There were several errors in the arithmetic on the id results, none ofwbich affected the order of the bids or the price of the low bidder. A bid tabulati n is attached showing the COII'eCted bid results for each of the bidders. The Traut Wells bid had a discrepancy in one of c: alternate bid items. The alternate bid items are optional for the City and are not included in the b bid amount. Televising of the well, when completc, was included as an alternate item since t is an item that the contractors will generally sub out to a specialist. The City could also directly co tract for this item to a specialty firm if desired. The bid amount for the alternative item oftelevisi g the well after constJ:u.ction was listcd in Traut's bid at $11,000. Typical cost for this item would b under $2000 and other bidders had costs ranging from $1200 - $1500. A phone call to Joe raut this morning reveals that this was a mistake in the bid and the actual cost to televise the well b Traut Hydro-Tech will be $1100. Award ofthc project will result in construction be' . g as soon as approval from the Minnesota Department of Health is obtaincd. Sincerely, C~J:JC. James M. Bullert, P.E. 13045\4-28..03 In- monticello 04/28/03 13:18 FAX 763 559 2202 BA LIESCH 141003/007 TABULATION OF CONTRACfORSeIDS FOR THE CONST UCflON AND TESTING OF MONTICELLO TEST PRODUCTION T.LS . Contractor Bid: . Mark . Traut W lillll, Inc. Unit Total No. Iwn Unit Price Pm Mobili:tation to 18-inch Production Well Site E.c.:h $4.700.00 2 F&I 24-;I1<::h Steel Casing L.F. S2., 1 00.00 3 Drill, Sample and Drive 24-inch Casina L.F. $1,600.00 4 F&I 18.jflQh Steel Cuing L.F. $6,165.00 5 Drill. Smnple and Drive IS-inell Cuina L.t. S~O. 0 9S $4,150.00 {) F&I l4-incb l'S 5S (Higb Q) Well SCf!:CII w/extellsion & K.paclrer L.F. Sl~~. 0 jO :57,750.00 7 7. rull Back 18.inch Casing To Expo,e Sc~ L.F. $30.0 55 $1,650.00 g 8. '11&1 Nc:\t C4mem Grout Bctwl;ell C3sinp C.Y. S3~0. 2 $700.00 . 9 9. Develop ProdllCtion Well Hour $100. 100 510.000.00 10 10. F ,I de Remove 2,200 gpm Test Pwnp L.S. $2,400. 0 $2,400.00. 11 11. F ,1 & R.emove Dischqc Pipe L.P. $2.0 200 S4OO.00 12 12. F) & Removo Measuring Device Fitted with Control Valve L.S. :5250. 0 $150.00 t'J 13. Conduct Pw'rtpinlJ Test Hour SlOO. 0 48 $4.800.00 14 14. Clip and DWnfect Test Production Well L.S. $350.00 S48,615.ool 548.615.00 ALTERNAft QUOTE ITEMS A. Abandon 24-inch <:.ing L.F. ~ 40 $100.00 B. Abandon lS.inch Test PNduction W ~ll L.F. 7 13S $945.00 C. TeI~vise Complcte4 . Test production Well L.S. 11 00 SH,OOO.OO Pille I 04/28/0:} 1:}:18 FAX 76;} 559 2202 BA LIESCH 141 004/007 ._.....- -..- "- TABULA TJON OF CONTRACTOR.S BIOS FOR THE CONS UCTION AND TESTING OF MONTICELLO TEST PR.ODUCTIoN L5 . Contractor Bid: Totlll No. Item Uuit !'rice Mobilization to J S-inch Production Wcll Site Eac:h 59,500.00 2 F8d 24-inch Steel CQing L.F. 42 S2,310.00 3 Drill, S~lc and Dri~ 24-inch CasiDS L.P. 40 $3,4Q0.00 4 F&l18-inch Steel CMlns L.F. 137 $6,165.00 , Drill, Sllmplc and Drive 18-im:h Casing L.F. 9S $7,125.00 6 F&114-inch PS 55 (High Q) Well SC1OC:II w/extenslon & K.paeker L.F. $1 5.00 SO SG,750.00 7 7. Pull Back 18.inch Cuing To expose Screen L.F. SIO.OO 55 55S0.00 8 8. F&1 NClJ.t Cement Grout Betw~ C36ings C.Y. 54 0.00 2 saOO.OO . 9 9. Develop Production Wen Hour $1 5.00 100 $12,.500.00 10 to. P,I &. Remove 2,200 gpm Test Pump L.S. 53,S 0.00 SJ,500.00 II 1 L F,r &. Rl:mOVC Discharge Pipe L.F. .00 200 5800.00 12 t2. F,l & RcmtJve Me8$uring Device Fitted with CQIltrQJ V~lvc L.S. SS 0.00 5500.00 13 13. Condu~ PUlIlPing Test Hour $ .s.oa 48 54,080.00 14 14. Cap and Dlsil1fect Test Production Well LoS. $800.00 SS8,780.00~ 558,780.00 ALTERNATE QUOTE ITEMS A. Abandon 24-inch Casing L.F. 40 $1,600.00 B. Abandon IS-inch Tc;,t Production Well L.F. 13S $3,375.00 C. Telcvi~ Complcted Teat PTlIductiOll Will L.$. ~ 1 ,'00,00 . Paae Z 04/28/03 13:19 FAX. 763 559 2202 BA LIESCH ~ 005/007 TABULA TJON OF CONTRACTORS BIDS FOR THe CONS UCTTON AND TESTING OF MONTICELLO TEST PRODUCTION LLS . Contractor :Bid: ergerson-Glsweil. Int.. nit Toml No. Item Unit Pritt MobifuWion to J 8-inch Prodw;:tion Wc:1J Sire Each $29.65Q.00 2 F&l24>inch Sta!1 Casing L.F. 42 $29,400.00 3 Drill. Slll1lpl~ and Drive 2+.inch Casing !,.F. 100.00 40 $4,000.00 4 F&J IS-inch Steel Cuing L.F. $liD. 00 137 58.220.00 S Drill. 5.mplc and Drive 18.inell C3liing L.F. $95.00 95 $9.025.00 6 F&I 14.inch PS S5 (HJgh Q) Well Sen::en w/cx.tcnsion &: K..packer L.'. 75.00 SO $13.750.00 7 7. PullBack 18.ineh CasinS To Expo", Screen L.F. $70.00 55 $3.850.00 8 g. F&J NelI1 CcmcIIt Grout Bctwr..m CuinlJlj C.Y. .00 2 $1,200.00 . 9 9. Develop Prllduction Well Hour $175.00 100 $17,500.00 10 JO. F,I & Rcmove2,200 gpm Test Pump L.S. $4 00.00 $4,500.00 11 II. F ,I & R.t:tnovlil Discharge Pipe L.'. $5.00 200 51,000.00 1;1. 12. F,I & kemove Measuring Device Fitwd with Control Vnlve L.S. $1, 00.00 0$1,500.00 13 13. Conduct P~lng Test Hour $ 25.00 48 $6,000.00 14 14. Cap and Disinfect Test Production Well L.S. St. 00.00 $1,000.00 OTAL BID S130,595.~ Bidd Total $104,135.00 ALTERNATE QUOTE ITEMS A. Ablllldon 24-inch Casing L.P. $140.00 40 55,600.00 B. Abandon IS.inch Test Production Well L.P. 13.:5 $12,150.00 C. Telev;/;c Cm1plctW Test Produetion Well L.S. $1,250.00 . Page J 04/28/03 13:20 FAX 763 569 2202 'WII'" -.. ~ ~- TABULATION OF CONttACTORS BIDS FOR THE CONSTR CTION AND TESI1NG OF MONTICBl.LO TEST PRODUCTION we s . CODtra~tor Bid: KeyI 011 Drilling ~ Total No. Item Unit Quantity Pric:e Mobilization to IS.inch Production Well Site ~ S2.S, 23.000.00 2 F &:\ 24-indl Steel Casing LoP. 42 2,730.00 3 Drill, Sample IJId Drive 14-mch Cuing L.F. 40 7,200.00 4 F&d IS-Inch Steel CaPng L.F. 137 6,850.00 5 Drill, Sample and Drive 18-inch Cumr L.F. $140.00 95 13,300.00 6 F&lI4-inch PS SS (Hish Q) Wen Screen w/~ler1l1ion &; K.packllr L.P. $150.00 ~O 7,500.00 7 7. Pull BliCk IS-Inch casing To Expose Screen L.F. $ 00.00 55 5,500.00 8 8. FM Neat Cement Grout Bltween Casinp c.Y. 2 t,OOO.OO 9 9. Develop Production Well Hour 100 17,500.00 10 10. F,1 & Rett\Cve 2,200 gpm Test Pump L.S. s,sOO.OO 11 11. F ,I &: Remove DisehilQl; Pipc L.F. $5.00 200 1,000.00 12 12 F,l & Remove Measuring Dwicll Fitted with Control Valve LS. $ 00.00 500.00 13 13. CQnduc:t Pumpmll Test Hour $ 20.00 48 5,760.00 14 14. Cap and Di.inf~ Test Production Wcll L.S. S OO.QO 500.00 OTALBID l 99,840.001 Bi Total $99,840.00 ALTERNATE QUOTE ITEMS A. 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