cp09-09-25u
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HUTCHINSON
A CITY ON PURPOSE.
CITY OF HUTCHINSON
MCLEOD COUNTY
HUTCHINSON, MINNESOTA
NOTICE OF A SPECIAL CITY COUNCIL WORKSHOP
Tuesday, September 9, 2025
4:00 p.m.
Council Chambers — Hutchinson City Center
Notice is hereby given that the Hutchinson City Council has called a special workshop meeting
for Tuesday, September 9, 2025, at 4:00 p.m. in the Council Chambers at the Hutchinson City
Center, I I I Hassan Street SE, Hutchinson, Minnesota for the following purpose:
• BUDGET WORKSHOP #3 (2026 PRELIMINARY BUDGET AND TAX LEVY)
/si,'/
Matthew Jaunich, City Administrator
DATED: September 5, 2025
POSTED: City Center
HUTCHINSON CITY COUNCIL
MEETING AGENDA
TUESDAY, SEPTEMBER 9, 2025
CITY CENTER — COUNCIL CHAMBERS
(The City Council is provided background information for agenda items in advance by city staff, committees and boards. Many decisions
regarding agenda items are based upon this information as well as: Citypolicy andpractices, inputfrom constituents, and other questions
or information that has not yet been presented or discussed regarding an agenda item)
1. CALL MEETING TO ORDER — 5:30 P.M.
(a) Approve the Council agenda and any agenda additions and/or corrections
2. INVOCATION — The River Church
(The invocation is a voluntary expression of the private citizen, to and for the City Council, and is not intended to ailiate the City
Council with, or express the City Council's preferencefor, any religious/spiritual organization. The views or beliefs expressed by the
invocation speaker have not been previously reviewed or approved by the Council or staff)
3. PLEDGE OF ALLEGIANCE
4. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY
(a) Resolution No. 15905 — Resolution Accepting $1000.00 Donation from Glen Kurth for Netting at
Veterans' Memorial Field
PUBLIC COMMENTS
(T is is an opportunity or members of the public to address the City Council. If the topic you would like to discuss is on the agenda, please
ask the Mayor if he will be accepting public comments during the agenda item if not a public hearing. Ifyou have a question, concern or
comment, please ask to be recognized by the mayor — state your name and address for the record. Please keep comments under 5 minutes.
Individuals wishing to speakfor more than five minutes should ask to be included on the agenda in advance of the meeting. All comments
are appreciated, but please refrain from personal or derogatory attacks on individuals)
5. CITIZENS ADDRESSING THE CITY COUNCIL
6. APPROVAL OF MINUTES
(a) Strategic Planning Session of August 26, 2025
(b) Budget Workshop of August 26, 2025
(c) Regular Meeting of August 26, 2025
CONSENT AGENDA
(The items listedfor consideration will be enacted by one motion unless the Mayor, a member of the City Council or
a city staff member requests an item to be removed. Traditionally items are not discussed)
7. APPROVAL OF CONSENT AGENDA I
(a) Consideration for Approval of Resolution No. 15906 - Resolution Approving Airport Maintenance &
Operations Grant Agreement with MNDOT
(b) Consideration for Approval of Resolution No. 15907 — Resolution Accepting Bid and Awarding
Contract Letting No.5/Project No. 25-05 (Aircraft Hangar Repair Project)
(c) Consideration for Approval of Issuing a Temporary Liquor License to the Hutchinson Chamber
Foundation on September 18, 2025, at Arts Place
(d) Consideration for Approval of Issuing Short -Term Gambling License to Gopher Campfire Sanctuary on
December 3, 2025
CITY COUNCIL AGENDA —August 26, 2025
(e) Affirmation of Board Reappointments
1. Steve Hahn to Airport Commission to September 2028
2. Andrew Hedin to Airport Commission to September 2028
(f) Claims, Appropriations and Contract Payments — Register A
8. APPROVAL OF CONSENT AGENDA II
(a) Claims, Appropriations and Contract Payments — Register B
PUBLIC HEARINGS — 6:00 P.M.
9. DALE STREET SW IMPROVEMENTS (Letting No. 1/Project No. 25-01)
(a)Approve/Deny Resolution No. 15903 - Resolution Ordering Improvement and Preparation of Plans and
Specifications
10. 2025 STREET IMPROVEMENTS PROJECTS (Letting No. 2/Project No. 25-02)
(a) Approve/Deny Resolution No. 15904 - Resolution Ordering Improvement and Preparation of Plans and
Specifications
11. MODIFICATION TO THE DEVELOPMENT PROGRAM (DEVELOPMENT DISTRICT NO. 4) & TAX
INCREMENT FINANCING (TIF) PLAN (ESTABLISHMENT OF TAX INCREMENT FINANCING
DISTRICT NO.4-24, A HOUSING DISTRICT)
(a) Approve/Deny Resolution No. 15908 — A Resolution Approving the Adoption of a Modification of a
Development Program for Municipal Development District No. 4; Establishing Tax Increment
Financing District No. 4-24 within Municipal Development District No. 4; Approving the Tax
Increment Financing Plan Therefor; Authorizing an Interfund Loan for Tax Increment Financing District
No. 4-24; Authorizing Execution of a Development Agreement; Approving the Elimination of a Parcel
from Tax Increment Financing District No. 4-16 within Municipal Development District No. 4; and
Authorizing the Forgiveness of an Interfund Loan for Tax Increment Financing District No. 4-16
MN"ICATIONS RE UESTS AND PETITIONS
purpose 5777 is portion oj the agenda is to provide the ounci with information necessary to craft wise policy.
Wes items like monthly or annual reports and communications from other entities.)
UNFINISHED BUSINESS
12. APPROVE/DENY SECOND READING AND ADOPTION OF ORDINANCE NO. 25-858 — AN
ORDINANCE FOR THE SALE OF MUNICIPALLY -OWNED PROPERTY TO HUTCHINSON — THE
LANDING, LLC
13. APPROVE/DENY SECOND READING AND ADOPTION OF ORDINANCE NO. 25-859 — AN
ORDINANCE OF THE CITY OF HUTCHINSON VACATING THE ALLEY IN BLOCK 41, NORTH
HALF HUTCHINSON
2
CITY COUNCIL AGENDA —August 26, 2025
14. APPROVE/DENY SECOND READING AND ADOPTION OF ORDINANCE NO. 25-860 — AN
ORDINANCE OF THE CITY OF HUTCHINSON VACATING THE RIGHT-OF-WAY (SANITARY
SEWER) EASEMENT LOCATED AT 126 FRANKLIN STREET NW
NEW BUSINESS
GOVERNANCE
(The purpose of this portion of the agenda is to deal with organizational development issues, including policies,
performances, and other matters that manage the logistics of the organization. May include monitoring reports,
policy development and governance process items)
15. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS
a) Hutchinson Library Board Minutes from June 23, 2025
b) Planning Commission Minutes from April 15, 2025
c) Planning Commission Minutes from July 15, 2025
MISCELLANEOUS
16. STAFF UPDATES
17. COUNCIL/MAYOR UPDATE
ADJOURNMENT
CITY OF HUTCHINSON
RESOLUTION NO. 15905
RESOLUTION ACCEPTING DONATION
WHEREAS, the City of Hutchinson is generally authorized to accept donations of real and
personal property pursuant to Minnesota Statutes Section 465.03 for the benefit of its citizens,
and is specifically authorized to accept gifts and bequests for the benefit of recreational services
pursuant to Minnesota Statutes Section 471.17; and
WHEREAS, the following persons or entities have offered to contribute the cash amounts
set forth below to the city:
Name of Donor Amount Donation Date
Glen Kurth $1,000.00 8/22/2025
WHEREAS, such donations have been contributed to the City of Hutchinson Parks
Department towards protective netting above the grandstand at Veterans Memorial Field.
WHEREAS, the City Council finds that it is appropriate to accept the donation offered.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
HUTCHINSON, MINNESOTA, AS FOLLOWS:
THAT, the donation described above is hereby accepted by the City of Hutchinson.
Adopted by the City Council this 9th day of September 2025.
ATTESTED:
Matthew Jaunich
City Administrator
APPROVED:
Gary T. Forcier
Mayor
STRATEGIC PLANNING SESSION — FINALIZING THE PLAN
AUGUST 26, 2025 — 3:00 P.M.
MINUTES
Members present: Mayor Gary Forcier called the session to order. Members
present were Tim Burley, Dave Sebesta, Pat May and Chad Czmowski. Others
present were Matt Jaunich, City Administrator and other city directors and staff.
1) Review of Strategic Plan
Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich explained
that this session is a follow-up to the session held last month. Mr. Jaunich noted again
that the seven core areas of focus for the City are public safety, health & recreation,
transportation, economic development, environment, good government and housing and
all these areas of focus are incorporated into the strategic plan. Mr. Jaunich also
reviewed the eight strategic goals that were identified in 2017 that staff feels are still
relevant today. These goals include:
1) We want to be known as a destination place for recreation, art and leisure.
2) We want to have a growing, diverse economy with a skilled workforce.
3) We want to have a variety of housing for a broad range of households in our
community.
4) We want to have welcoming and safe city facilities to service current and future
generations.
5) We want to have cost effective, reliable, and sustainable energy and practices.
6) We want to have high quality, multi -modal transportation and infrastructure
systems.
7) We want to have active citizen engagement, participation and involvement.
8) We want to have fiscally responsible management to serve3 community needs.
Mr. Jaunich also reviewed the various ideas, barriers, and projects that were identified in
the planning sessions held last year and at the last session in achieving the eight
strategic goals.
Mr. Jaunich lastly reviewed the four strategic directions that will assist staff and Council
in achieving the eight strategic goals. These directions include Planning, Growing,
Engaging and Paying.
Mr. Jaunich noted that staff had put together one to two year goals and three to five
year goals to accomplish on the strategic plan and want to get more
feedback/input/direction from the Council on goals/projects that should be added,
removed or changed. Some of the "big ticket" items that were discussed at the last
strategic planning session included:
Sales tax renewal and other expanded funding options
Funding for new ladder truck
City Center remodel
Future of Event Center
Utility expansion to Hwy 22 & 7 intersection
HATS facility upgrade
Prioritizing Park and Recreation facilities — new and old
General discussion was held regarding the large interest in housing developments by
developers that have been presented to the City since the Spring of 2024.
Mr. Jaunich spoke to the Council regarding gauging their desire for Parks & Recreation
projects when so many requests are being made to the City. Mayor Forcier noted that
maintenance of projects/facilities needs to be considered when new ones are taken on.
Mr. Jaunich also spoke about the large repairs/maintenance that are required on current
facilities such as the aquatic center and ice arenas and other facilities. Council Member
Burley also spoke about the large costs of maintaining current facilities and new facilities
and he suggested that if organizations request a project they must have funds raised to
contribute to the project. Council Member Czmowski noted that he doesn't feel a strict
policy for fundraising efforts can be pinpointed because it will always be a moving
target. He stated that he feels the amount of money raised, the amount of people/users
affected, and such need to be considered with each project. General discussion was
held regarding the use and future use of the Event Center/Senior Center. General
discussion was also held regarding potential sales tax renewal. The general consensus
of the Council was to maintain what the City currently has and only consider other
projects if organizations have serious funds raised to contribute to the project.
Mr. Jaunich asked the Council to consider any changes they feel need to be made to the
one to five year goals that have been identified by staff. Council Members did express
that updates to facilities such as the ice arenas, aquatic center, other parks/recreation
facilities, etc. should attempted to be funded by a sales tax. Council Member Czmowski
asked that staff put together an estimate to add on to the Rec Center for a senior center
space as well as an estimate to renovate/update the Event Center.
2) Next Steps/Future Meetings
Formal approval of the strategic plan will be placed on an upcoming City Council
agenda.
Motion by May, second by Czmowski, to adjourn at 3:55 p.m. Motion carried
unanimously.
ATTEST:
Gary T. Forcier
Matthew Jaunich
Mayor City Administrator
HUTCHINSON CITY COUNCIL
REVIEW OF 2026 PRELIMINARY CAPITAL IMPROVEMENT PLAN
MINUTES
TUESDAY, AUGUST 26, 2025, AT 4:00 PM
CITY CENTER — COUNCIL CHAMBERS
1. Call to Order
Mayor Forcier called the workshop to order at 4:00 p.m. Members present included Tim Burley,
Pat May, Dave Sebesta and Chad Czmowski. Others present were Matt Jaunich, City
Administrator and other city directors.
REVIEW OF 2026 PRELIMINARY CAPITAL IMPROVEMENT PLAN
2. 2026 Preliminary Capital Improvement Plan
Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich reviewed the
purpose of a capital improvement plan and the planning that goes into it. A CIP is a document
that realistically projects city needs, outlines means by which those needs can be met and
provides prioritization of those needs for large capital items within the city. The planning process
provides city staff and Council with a framework to make decisions regarding current and future
city needs considering the city's financial capability. The CIP commits the City to a long term
capital plan that ensures that expenditures can be made to add or replace capital items when
needed, without significant fluctuations in the property tax levy. Capital planning enables the
City to maintain a stable property tax rate, prevent peaks and valleys in its debt retirement
program and establish and thereafter improve its credit rating. The CIP establishes a
comprehensive development program that is used to maximize outside revenue sources and
effectively plan for the growth and maintenance of the city's infrastructure. The plan can and
should be used as a goal, priority and vision -setting tool. Mr. Jaunich also reviewed how the CIP
Plan is built which includes individual City Council goals and collective Council goals;
citizens/business/user feedback to elected officials (needs, wants, desires of the community); City
staff long-term maintenance and replacement schedules; and state/federal mandates.
Mr. Jaunich began an overview of the five year capital plan document. The proposed plan is
estimated at $73.09 million. The Plan is approximately $7.31 million higher than last year's five-
year plan. The plan has an annual average CIP cost of $14.62 million. 2026's $15.23 million
CIP cost currently accounts for approximately 25-30% of all budgeted expenses. For comparison
purposes, this year's (2025) general fund budget is $15.71 million. Large projects included in the
plan are the Campground ($500,000) in 2026; City Center remodel ($2.3 million); ladder truck
($1.5 million); and the biodsolids project ($5 million) in 2026& 2027; HATS facility ($10.3
million) in 2027; ice rink improvements ($2.9 million) in 2028 & 2029; splash pad ($2 million);
aquatic center upgrades ($450,000) and pickleball courts ($600,000) in 2029.
Mr. Jaunich reviewed that the plan is divided into infrastructure at $20.92 million; Park & Rec at
$9.85 million; Enterprise Funds at $23.51 million; Public Works at $13.50 million; Public Safety
at $2.64 million and General Government at $2.68 million. The make-up of the CIP includes:
New Debt: $14.85 million (amount of money that we need to borrow to pay for capital projects);
Aid/Grants/Donations (state aid, federal/state/county grants, bonding dollars, donations): $21.32
million; Enterprise Funds (Creekside, Liquor Store, Refuse, Water, Sewer, Wastewater,
Stormwater): $18.94 million; Taxes (money from our tax levy that gets designated towards
capital projects): $7.65 million; Special Assessments (direct costs that will be assigned to
property owners adjacent to projects): $2.85 million; Special Funds/Reserves (rural fire
department, cooperative agreements, special funds): $164,500. Mr. Jaunich reviewed the CIP
funding sources for various funds. Within the general fund, facility improvements are funded by
the capital projects fund. $850,000 of LGA is dedicated annually and $50,000 is dedicated for
playgrounds. Fleet & Equipment is funded by the Equipment Replacement Fund. There is an
annual transfer of $425,000 from the general fund and $50,000 from the LGA fund as the current
funding is not adequate for the "small' and "heavy" fleet needs. An additional funding source of
about $274,900/year is needed. Other Capital Needs are funded by departmental budgets through
the tax levy, grants/donations and/or other city funding. Within the enterprise funds, the funding
comes from cash flow from operations and is driven by user revenue. Cash reserves are also used
for funding. Debt service payments are funded by revenue from operations. Infrastructure
improvements debt are covered by G.O. special assessment improvements bonds, G.O. Bonds for
police facility, special assessments, municipal state aid for streets and federal aid, grants,
enterprise fund contributions and other city funding from Capital Projects and Community
Improvement. The Capital Projects Fund funding sources come from LGA, bonding dollars and
grants. The use of these funds are for general fund capital improvements included in the Facility
Plan, miscellaneous infrastructure maintenance such as trails, sidewalks, parking lots, street
lights, sealcoating, etc., and other projects approved by the City Council. The 2024 year-end
unreserved cash balance is $1,210,340 from this fund. The Community Improvement Fund
funding sources come from retired debt service funds and donations. The use of these funds are
for City Council approved projects and Public Arts Commission & other public arts projects. The
2024 year-end unreserved cash balance is $2,068,009 from this fund. The Public Sites Fund
funding sources come from park dedication fees, donations, grants and rent on agricultural land.
The use of these funds are for parkland improvements, tree development, arts, and City Council
approved projects. The 2023 year-end unreserved cash balance is $270,768 from this fund.
Mr. Jaunich noted where the proposed 2026 CIP monies are going to. They include $3.85 million
for infrastructure (Edmonton Avenue, Larson/Bradford/Orchard/Sherwood/Elks/etc., and
sealcoating); $1.53 million for Park & Rec (pool repairs/features, vehicles/equipment,
playgrounds, campground, and outdoor basketball courts); $7.20 million for Enterprise Funds
(liquor store improvements, Creekside equipment, water and wastewater improvements and
equipment, water meters and storm water improvements); $1.25 million for Public Works
(airport, cemetery and vehicles/equipment); $1.04 million for Public Safety (fire truck and squad
car/police robot; $363,000 for General Government (City Center). Mr. Jaunich then reviewed
where the proposed 2026 CIP monies are coming from. They include $3.78 million from New
Debt (amount of money that we are planning to borrow to pay for capital projects next year);
$2.11 million from Aid/Grants; $5.89 million from Enterprise Funds; $2.72 million from Taxes
(money from our tax levy that is helping to pay for capital projects next year); $559,104 from
Special Assessments (direct costs that will be assigned to property owners adjacent to projects);
and $175,000 from Unfunded.
Mr. Jaunich reviewed the five components of the Plan which include the fleet committee,
facilities committee, Creekside, Resource Allocation Committee and General. Mr. Jaunich
provided an overview of fleet. With regard to light duty fleet there are currently 89 pieces of
light duty equipment such as cars, pickups, skid loaders, etc. Currently $475,000 of CIP funds
are allocated annually for light duty fleet, funded by the general fund. The unreserved fund
balance at the end of 2024 acquisitions is $957,000. In 2026, eight vehicles/equipment have been
recommended for replacement at an estimated gross cost of W9,259. With regard to heavy duty
fleet, the City currently has 23 pieces of heavy-duty equipment which are made up of fire
apparatuses, snow equipment, frontend loaders, etc. The current plan includes $1,496,663 million
of costs in 2026 and 2027 to replace the fire ladder truck, in addition to $600,641 expected to be
paid in 2025 for a total cost of $2,094,304. Funding this purchase will likely include reserves
from the Equipment Replacement and Capital Projects funds, in addition to possible debt issued
in 2026. In 2024, a snow plow truck chassis was purchased at a total cost of $126,749. The snow
equipment was installed in 2025 at a cost of $153,987, for a total cost of $280,735. A used
tandem -axle truck was purchased at a cost of $121,790. In 2025, a snow plow truck is being
replaced at a total estimated cost of $279,000. The chassis has been purchased to date and the
snow equipment is being installed. The City took a significant step in meeting its demand for
heavy equipment in 2016 with bonded debt for several large pieces of equipment — the five-year
debt expired in February 2022 and noting that future debt for heavy equipment would increase the
City's debt tax levy. The light duty and heavy-duty fleet program is still currently not sustainable
with this plan. The current plan has an annual shortage of roughly $274,900 mostly attributed to
heavy fleet but it's improving. Staff is continuing to look at bonding/borrowing for future heavy-
duty fleet such as the fire ladder truck. The City has allocated $50,000 of its LGA increase in
2024 to Fleet. Policy focus of the City is to put more focus on the Vehicle Condition Index and
less focus on expected life, although service age is a major component of the VCI.
Mr. Jaunich provided an update on the facility committee. Overall, the facility planning
concept/funding model with a facility manager continues to work well. Construction costs have
increased significantly and lead times for equipment/supply can run as long as 35 weeks making
things difficult. Park and Recreation facilities are taking up the majority of the City's facility
funds. A small project building repair fund has been established with $50,000 per year set aside
to address smaller facility items such as lighting upgrades, small roof projects, tuck pointing/joint
repair, etc. Facility Committee staff continue to assess condition ratings and develop a project list
based on needs.
Mr. Jaunich then reviewed the major projects in 2025 which included the finishing of the
grandstand and lighting project at VMF, bathroom remodel at VMF, City Center space needs
study, pool re-coat/repairs about to begin and Roberts Park lighting project is about to begin.
Mr. Jaunich also reviewed the current facility plan budget.
Mr. Jaunich reviewed the 5 Year CIP for both the compost and refuse funds which is just over
$1.59 million. Items include equipment and vehicles, office expansion, bagging line
improvements and other facility/equipment upgrades. The previous five-year CIP was just over
$1.52 million.
Public Works projects included in the 2026 plan are: Edmonton Avenue reclaim;
Larson/Bradford/Orchard/Sherwood/Elks/Randall reclaim; sealcoating; airport snow shed; HATS
roof, Southfork pond; continued work on Lakes/River basin improvements; water meter
replacements; additional upgrades to water and wastewater facilities (biosolids project); and
vehicle/equipment replacements. Mr. Jaunich then noted Public Works CIP projects slated for
2027-2030.
Parks & Recreation projects included in the 2026 plan are: aquatic center repairs and pool feature
upgrades; West rink rubber floor at Burich Arena; North Park playground equipment;
campground expansion; outdoor basketball court (half funded); parks garage HVAC and Rec
Center office HVAC; and vehicle/equipment replacements. Mr. Jaunich then noted Parks &
Recreation CIP projects slated for 2027-2030.
2026 Public Safety Projects include fire department garage door and floor improvements; second
payment on the fire ladder truck; police tactical robot and vehicle and equipment replacements for
inspections/fire/police. Mr. Jaunich then noted Public Safety CIP projects slated for 2027-2030.
Mr. Jaunich reviewed several projects that do not have a funding source which include outdoor
basketball court, east/west rink floor replacements at Burich Arena, pool resurfacing, splash pad,
pickleball courts and HATS facility improvements. He noted that the Lakes/River basin
improvements project has funding from state dollars which started in 2024 and is ongoing. There
are long-term funding needs for heavy and light fleet. There is nothing set aside for funding for
infrastructure for new development. Staff is working on a plan that includes fund balances and
new debt to update the City Center. Staff is running additional debt scenarios for additional funds
for infrastructure improvements. There is state bonding available for the HATS facility.
Council Member Czmowski noted that the splash pad and pickleball courts projects should not
move forward unless fundraising monies are contributed.
Mr. Jaunich reviewed project funding limitations/concerns. These include costs to fund
infrastructure; $1.9 million bonding target limitations; looking at additional debt capacities for
ladder truck, City Center remodel and street improvements; dedicated street sealcoating funding
at $125,000/year; infrastructure maintenance needs at $325,000/year; construction costs/inflation;
utility funds capacity; municipal state & federal aid utilization; local sales tax is still a big
question; impact of legislative changes to water/wastewater and costs associated with it. The
Council needs to identify the priorities.
Mr. Jaunich spoke about other potential funding options: one-time public safety aid; new housing
aid; sale of Event Center; capital projects fund; community improvement fund and public sites
fund.
Mr. Jaunich spoke more about the one-time public safety aid. There is currently $91,273
remaining. These funds can be used for things such as community violence prevention and
intervention programs, community engagement, mental health crisis responses, victim services,
training programs, first responder wellness, equipment related to fire/rescue/emergency services,
and to pay other personnel or equipment costs.
Mr. Jaunich also spoke about affordable housing aid. $167,965 is currently available. The HRA
has requested use of all of the funds for their City Home Improvement Program. Crow River
Habitat for Humanity has asked for $80,000 to assist in the construction of a new home.
Allowable uses for these funds include emergency rental assistance for households earning less
than 80% of area median income as determined by HUD; financial support to nonprofit
affordable housing providers; construction, acquisition, rehabilitation, demolition or removal of
structures, construction financing, permanent financing, interest rate reduction, refinancing and
gap financing for homeownership projects and rental housing projects; emergency rental
assistance for households earning less than 80% of area median income as determined by HUD;
and use of funds for new construction or substantial rehabilitation of a building containing more
than four units.
Mr. Jaunich lastly spoke about the future of the city sales tax option. The local sales tax went
into effect in 2011 and the City is currently collecting approximately $1.825 million per year.
These funds help cover debt payments associated with the water and wastewater systems and help
assist with funding options for capital improvements in the water and wastewater system. The
local option sales tax expires at the end of 2029 or when revenues are sufficient to pay for the
projects and associated bond costs which would be in 2026. The previous moratorium has ended
with no new law changes on sales tax with the previous process being put back in place.
Mr. Jaunich also noted that currently staff is looking at a 15% preliminary tax levy increase. One
main reason is that there is no new revenue coming in like previous years. In addition, there is a
projected 12-15% increase in health insurance costs. More information will be presented at the
budget workshop on September 9, 2025. Mr. Jaunich asked that the Council study the debt
analysis that was distributed at today's workshop.
The splash pad and pickleball courts will be removed from the CIP plan at this time. The HATS
facility will be monitored as legislative decisions are made. Debt for the fire ladder truck and
other projects will be studied and reviewed. It was noted what a significance the contributions
from the enterprise funds bring to the general fund.
3. Adjournment
Motion by Czmowski, second by May, to adjourn the workshop at 5:15 p.m. Motion carried
unanimously.
ATTEST:
Gary T. Forcier
Mayor
Matthew Jaunich
City Administrator
HUTCHINSON CITY COUNCIL
MEETING MINUTES
TUESDAY, AUGUST 12, 2025
CITY CENTER — COUNCIL CHAMBERS
(The City Council is provided background information for agenda items in advance by city staff, committees and boards. Many decisions
regarding agenda items are based upon this information as well as: Citypolicy andpractices, inputfrom constituents, and other questions
or information that has not yet been presented or discussed regarding an agenda item)
1. CALL MEETING TO ORDER — 5:30 P.M.
Mayor Gary Forcier called the meeting to order. Members present were Tim Burley, Pat May, Chad Czmowski
and Dave Sebesta. Also present were Matt Jaunich, City Administrator and Marc Sebora, City Attorney.
(a) Approve the Council agenda and any agenda additions and/or corrections
Matt Jaunich, City Administrator, noted that an additional item needs to be added under New Business as
Item 11.5 —approving a satisfaction of mortgage.
Motion by Burley, second by Czmowski, to approve the agenda with the additional item noted. Motion
carried unanimously.
2. INVOCATION — A moment of silence was held in lieu of an invocation.
(The invocation is a voluntary expression of the private citizen, to and for the City Council, and is not intended to affiliate the City
Council with, or express the City Council's p referencefo r, any religious/spiritual organization. The views or beliefs expressed by the
invocation speaker have not been previously reviewed or approved by the Council or staff)
3. PLEDGE OF ALLEGIANCE
4. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY
PUBLIC COMMENTS
(T is is an opportunity or members of thepublic to address the City Council. If the topic you would like to discuss is on the agenda, please
ask the Mayor if he will be accepting public comments during the agenda item if not a public hearing. If you have a question, concern or
comment, please ask to be recognized by the mayor — state your name and address for the record. Please keep comments under 5 minutes.
Individuals wishing to speakfor more than five minutes should ask to be included on the agenda in advance of the meeting. All comments
are appreciated, but please refrain from personal or derogatory attacks on individuals)
5. CITIZENS ADDRESSING THE CITY COUNCIL
6. APPROVAL OF MINUTES
(a) Strategic Planning Session of July 22, 2025
(b) Regular Meeting of July 22, 2025
Motion by Czmowski, second by Sebesta, to approve the minutes as presented. Motion carried
unanimously.
CONSENT AGENDA
(The items iste or consi eration will be enacted by one motion unless the Mayor, a member of the City Council or
a city staff member requests an item to be removed. Traditionally items are not discussed)
7. APPROVAL OF CONSENT AGENDA I
(a) Consideration for Affirmation of Board Appointments/Reappointments
1. Appointment of Heidi Tague to Bicycle/Pedestrian Advisory Committee to August 2028
2. Reappointment of Mark Hanneman to Bicycle/Pedestrian Advisory Committee to August 2028
3. Reappointment of Deb Card to Bicycle/Pedestrian Advisory Committee to August 2028
4. Reappointment of Margo Kaping to PRCE Advisory Board to August 2028
CITY COUNCIL MINUTES —August 12, 2025
5. Reappointment of Liz Stearns to PRCE Advisory Board to August 2028
(b) Consideration for Approval of Construction Services Agreement with Nero Engineering (Solids
Improvement Project)
(c) Consideration for Approval of Engineering Services Agreement with SEH (Pond Planning Proposal)
(d) Consideration for Approval of Hangar Repair Project
(e) Consideration for Approval of Repairs for Aquatic Center
(f) Consideration for Approval of Squad Car Purchase
(g) Consideration for Approval of Resolution No. 15892 — Resolution Approving the Decertification of Tax
Increment Financing District 4-20 of the City of Hutchinson
(h) Claims, Appropriations and Contract Payments — Register A
Motion by May, second by Sebesta, to approve Consent Agenda I. Motion carried unanimously.
8. APPROVAL OF CONSENT AGENDA II
(a) Claims, Appropriations and Contract Payments — Register B
Motion by Burley, second by May, with Czmowski abstaining, to approve Consent Agenda II. Motion
carried unanimously.
PUBLIC HEARINGS — 6:00 P.M. - NONE
MMUNICATIONS RE UESTS AND PETITIONS
purpose o t is portion oJ the agenda is to provi e the ounci with information necessary to craft wise policy.
Wes items like monthly or annual reports and communications from other entities.)
UNFINISHED BUSINESS
NEW BUSINESS
9. APPROVE/DENY RESOLUTION NO. 15891 — RESOLUTION ACCEPTING BID AND AWARDING
CONTRACTS FOR THE ROBERTS PARK COMPLEX LIGHTING PROJECT
Lynn Neumann, PRCE Director, presented before the Council. Ms. Neumann explained that the equipment
and installation were bid out separately with the total bid package coming in at $574,785.00 which was
below
the original estimate of $765,000. This project has been included in the Facilities Plan and the capital
improvement plan for several years. The project has faced several delays and the lights are now in disrepair
and require replacement.
Motion by Czmowski, second by May, to approve Resolution No. 15891. Motion carried unanimously.
2
CITY COUNCIL MINUTES —August 12, 2025
10. APPROVE/DENY SETTING STRATEGIC PLANNING SESSION FOR AUGUST 26, 2025
Motion by May, second by Burley, to set strategic planning session for August 26, 2025, at 3:00 p.m.
Motion carried unanimously.
11. APPROVE/DENY SETTING BUDGET WORKSHOPS FOR AUGUST 26 AND SEPTEMBER 9, 2025
Motion by May, second by Burley, to set budget workshops for August 26 and September 9, 2025, at 4:00
p.m. Motion carried unanimously.
11.5 APPROVE/DENY SATISFACTION OF MORTGAGE
Marc Sebora, City Attorney, presented before the Council. Mr. Sebora explained that in 1996 JME, Inc., the
predecessor to Impressions Inc. received a forgivable loan from the EDA that was secured by a mortgage
from JME, Inc. The loan was to be forgiven after 10 years if JME, Inc. did not sell any of its property or did
not go through bankruptcy. Neither of those events happened so the loan was forgiven. The City was
contacted recently by an attorney representing Impressions, Inc. asking for a formal satisfaction of the
mortgage so that this outstanding mortgage could be recorded as satisfied in order to provide clear title to
the property.
Motion by May, second by Czmowski, to approve satisfaction of mortgage with JME, Inc. Motion carried
unanimously.
GOVERNANCE
(The purpose of this portion of the agenda is to deal with organizational development issues, including policies,
performances, and other matters that manage the logistics of the organization. May include monitoring reports,
policy development and governance process items)
12. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS
(a) City of Hutchinson Financial Report and Investment Report for June 2025
NHSCELLANEOUS
13. STAFF UPDATES
Tom Gifferson — Chief Gifferson spoke about motorized scooters compared to ebikes and even skateboards.
Staff reminded listeners that biking, skateboarding, etc. is not allowed in the downtown district on the
sidewalks. General discussion was held regarding bicycle rules/regulations and perhaps signage/speed
limits/etc. on trails. This will be a topic of discussion at the Bicycle/Pedestrian Advisory Committee.
Lynn Neumann — Ms. Neumann noted that the aquatic center closes this Saturday, however will remain open
for early morning lap swim for the next week or two. There may be some bonus days for the aquatic center if
there is adequate staffing. If this is able to be achieved, information will be posted on the PRCE Facebook
page.
Mike Stifter — Mr. Stifter noted that Hassan Street paving/striping is complete. Dale Street will have concrete
work complete this week with paving starting next week.
Matt Jaunich — Mr. Jaunich noted that backyard chicken regulations/licensing are in effect and available. The
City has issued one license so far.
CITY COUNCIL MINUTES —August 12, 2025
14. COUNCIL/MAYOR UPDATE
Several Council Members noted that the Hutch Huskies amateur baseball team are in the state tournament
which is being hosted in Hutchinson this year. They also commented on the McLeod County Fair starting on
Thursday and the successful Stroll for Hope event held last week.
ADJOURNMENT
Motion by May, second by Czmowski, to adjourn at 6:05 p.m. Motion carried unanimously.
ATTEST:
Gary T. Forcier
Mayor
Matthew Jaunich
City Administrator
.19
c: HUTCHINSON CITY COUNCIL
HUTCHINSON Request for Board Action
A CITY ON PURPOSE
IIIIIIII
Maintenance and Operations Agreement with MNDOT Aeronautics
Agenda Item:
Department: Public Works
LICENSE SECTION
Meeting Date: 9/9/2025
Application Complete N/A
Contact: Mike Stifter
Agenda Item Type:
Presenter: Mike Stifter
Reviewed by Staff ❑
Consent Agenda 0
Time Requested (Minutes): 1
License Contingency N/A
Attachments: Yes
BACKGROUND/EXPLANATION OFAGENDA ITEM:
This is the annual renewal of the maintenance and operations agreement with MNDOT
aeronautics. This agreement covers up to $25,000 per year for eligible airport maintenance and
operations expenses.
BOARD ACTION REQUESTED:
Approval of resolution & consent to enter into fiscal years 2026 and 2027
Fiscal Impact: $ 0.00 Funding Source:
FTE Impact: Budget Change: New Bu
Included in current budget: No
PROJECT SECTION:
Total Project Cost:
Total City Cost: Funding Source: N/A
Remaining Cost: $ 0.00 Funding Source: N/A
MDEPARTMENT OF
TRANSPORTATION
STATE OF MINNESOTA
STATE AIRPORTS FUND
MnDOT Agreement No. 1060326
AIRPORT MAINTENANCE AND OPERATIONS GRANT AGREEMENT
State Project Number (S.P.): A4304-MO26
State Project Number (S.P.): A4304-MO27
This Agreement is between the State of Minnesota, acting through its Commissioner of Transportation ("State") and City
of Hutchinson, City of Hutchinson, I I I Hassan Street SE, Hutchinson, MN 55350 acting through its City Council
("Grantee") ("Agreement").
RECITALS
Minnesota Statutes §§360.015 and 360.305 authorize the State to provide financial assistance to airports for
maintenance and operations activities.
2. Grantee owns, operates, or controls an airport ("Airport") in the state system, and desires financial assistance from
the State for maintenance and operations activities for State Fiscal Year 2026 and State Fiscal Year 2027.
Grantee represents that it is duly qualified and agrees to perform all services described in this Agreement to the
satisfaction of the State.
AGREEMENT TERMS
1. Term of Agreement and Survival of Terms
I.I. Effective Date. This Agreement will be effective on the date the State obtains all required signatures under
Minnesota Statutes §16B.98, subdivision 5, whichever is later. As required by Minnesota Statutes §16B.98
Subd. 7, no payments will be made to Grantee until this Agreement is fully executed.
1.2. Expiration Date. This Agreement will expire on June 30, 2027.
1.3. Survival of Terms. All clauses which impose obligations continuing in their nature and which must survive in
order to give effect to their meaning will survive the expiration or termination of this Agreement, including, but
not limited to, the following clauses: Indemnification; State Audits; Government Data Practices; Governing
Law, Jurisdiction and Venue; and Data Disclosure.
2. Grantee's Duties
2.1. Airport Use. In accordance with Minnesota Statutes §360.305, Subd. 4, Grantee must operate and maintain the
Airport, for the use and benefit of the public, in a safe, serviceable manner for aeronautical purposes only for a
period of one (1) year from the date Grantee receives final reimbursement under this Agreement.
2.2. Grounds Maintenance. Grantee will keep the runway and the area around the lights at the Airport mowed and
plowed. The grass must be mowed at least seven (7) feet beyond the lights and must not exceed six (6) inches in
height on the landing area. The areas around any navigational aids must be sufficiently mowed and plowed to
keep the area clear for vehicle access. If the Airport remains operational during the winter months, Grantee will
keep at least one runway, associated taxiway, and apron area cleared of snow and ice to the same priority as
arterial roads. Snowbanks must be limited in height so that aircraft wings, engines, and propellers will clear
them. Landing strip markers and/or lights must remain visible.
Aero/CM M&O Grant Agreement (Updated 08/04/2025)
MnDOT Agreement No. 1060326
2.3. Periodic Paint Striping. If the State contracts for the periodic paint striping of the Airport's runways and
taxiways during the term of this Agreement, Grantee will cooperate with the marking operation. Grantee must
coordinate seal coat pavement maintenance projects with the State to maximize the pavement marking life.
2.4. Inspections. Grantee will allow a representative of the State's Office of Aeronautics access to any area of the
Airport necessary for the purpose of periodic inspections.
2.5. Third -Party Contracting. Grantee will comply with all applicable local, state, or federal laws, regulations,
policies and procedures in the procurement of goods and services funded in whole or in part under this
Agreement.
3. Grantee's Assurances
3.1. Grantee represents and warrants that Grantee has established a zoning authority for the Airport, and such
authority has completed, or is in the process of and will complete, with due diligence, an airport zoning
ordinance in accordance with Minnesota Statutes §§360.061 to 360.074.
3.2. Grantee will comply with all required grants management policies and procedures set forth in Minnesota
Statutes §1613.97 subd.4(a)(1).
4. Consideration and Payment
4.1. Consideration. State will pay for all eligible maintenance and operations costs incurred by Grantee under this
Agreement as follows:
4.1.1. Basis. Grantee will be reimbursed for 75% of all eligible maintenance and operations costs not
reimbursed by any other source. Eligible maintenance and operations costs will be determined at the sole
discretion of State's Authorized Representative or their designee according to the State's Funding
Eligibility Guidance, which is available at:
https://www.dot.state.mn.us/aero/ailportdevelopment/fundingandgrants.html
4.1.2. Fiscal Year Obligations. State has currently obligated $27,569.09 in each state fiscal year to reimburse
75% of eligible costs incurred by Grantee during each fiscal year and will be capped at this amount for
each fiscal year. Any funding granted but not requested for reimbursement within the first fiscal year
will not roll over into the second fiscal year.
4.1.3. Total Obligation. The State's total obligation for all compensation and reimbursements to Grantee
under this Agreement will not exceed $55,138.18 (reflecting state fiscal years 2026 and 2027 combined
obligations).
4.2. Payment.
4.2.1. Invoices. Grantee must submit detailed reimbursement requests for its eligible costs to the State's
Authorized Representative on a quarterly basis or as otherwise directed by State's Authorized
Representative. Invoices for expenses incurred after grant funds were encumbered by the State, but
before the Effective Date of this Agreement, may not be submitted for reimbursement until after the
Effective Date of this Agreement. The State's Office of Aeronautics will supply the reimbursement
request forms that Grantee must submit. Reimbursement requests must be submitted according to the
following schedule:
• Quarter 1 (Jul. 1st — Sept. 30th): On or after October 1, and no later than November 15;
• Quarter 2 (Oct. 1st — Dec. 31st): On or after January 1, and no later than February 15;
• Quarter 3 (Jan. 1st — Mar. 31't): On or after April 1, and no later than May 15; and
• Quarter 4 (Apr. 1st — Jun. 30th): On or after July 1, and no later than August 15.
The State may reject any costs submitted for reimbursement that the State determines, in its sole
discretion, are not eligible maintenance and operations expenses. Any invoices not received by the
State's Authorized Representative by December 3I't of the fiscal year in which the expenses were
incurred will be ineligible for reimbursement and rejected.
Aero/CM M&O Grant Agreement (Updated 08/26/2025)
MnDOT Agreement No. 1060326
4.2.2. All Invoices Subject to Audit. All invoices are subject to audit, at the State's discretion.
4.2.3. Progress Reports. The State may, at its sole discretion, require Grantee to submit quarterly progress
reports in addition to its invoices. If so requested, the State will provide a progress report form for
Grantee's completion and submittal with its invoices.
4.2.4. The State's Payment Requirements. The State will promptly pay all valid obligations under this
Agreement as required by Minnesota Statutes §16A.124. The State will make undisputed payments no
later than thirty (30) days after receiving Grantee's invoices and progress reports, if requested by the
State, for services performed. If an invoice is incorrect, defective or otherwise improper, the State will
notify Grantee within ten (10) days of discovering the error. After the State receives the corrected
invoice, State will pay Grantee within thirty (30) days of receipt of such invoice.
4.2.5. Grant Monitoring Visit and Financial Reconciliation. If the State's total obligation is greater than
$50,000.00, the State will conduct at least one monitoring visit and financial reconciliation of Grantee's
expenditures. If the State's total obligation is greater than $250,000.00, the State will conduct annual
monitoring visits and financial reconciliations of Grantee's expenditures. The State's Authorized
Representative will notify Grantee's Authorized Representative where and when monitoring visits and
financial reconciliations will take place, which state employees and Grantee staff members should be
present, as well as which, if any, of Grantee's contractors or consultants, or their agents, are required to
participate. Grantee will be provided at least seven (7) days' notice prior to monitoring visits and/or
financial reconciliations. Following a monitoring visit or financial reconciliation, Grantee will take
timely and appropriate action on all deficiencies identified by the State. At least one monitoring visit and
one financial reconciliation must be completed prior to final payment being made to Grantee.
4.2.6. Closeout. The State will determine, at its sole discretion, whether a closeout audit is required prior to
final payment approval. If a closeout audit is required, final payment will be held until the audit has been
completed. Monitoring of any capital assets acquired with grant funds will continue following grant
closeout.
Conditions of Payment. All services provided by Grantee under this Agreement must be performed to the State's
satisfaction, as determined at the sole discretion of State's Authorized Representative and in accordance with all
applicable federal, state and local laws, ordinances, rules and regulations, including business registration requirements
of the Office of the Secretary of State. Grantee will not receive payment for work found by the State to be
unsatisfactory or performed in violation of federal, state or local law. In the event the Airport fails to pass any periodic
inspection conducted by a representative of the State's Office of Aeronautics, Grantee will not receive payment under
this Agreement until all deficiencies identified by any such inspection have been rectified to the Office of
Aeronautics' satisfaction.
6. Authorized Representatives
6.1. State's Authorized Representative. State's Authorized Representative will be:
Name/Title: Jenny Bahneman, Grants Specialist Coordinator
Address: Office of Aeronautics
395 John Ireland Boulevard, Mail Stop 410
Saint Paul, Minnesota 55155
E-Mail: jenny.bahnemangstate.mn.us
State's Authorized Representative or their successor, will monitor Grantee's performance and has the authority
to accept or reject the services provided under this Agreement. If the Grantee's duties are performed in a
satisfactory manner, the State's Authorized Representative will accept each reimbursement request submitted
for payment.
6.2. Grantee's Authorized Representative. Grantee's Authorized Representative will be:
Name/Title: Donovan Schuette, Public Works Manager
Address: City of Hutchinson, I I Hassan Street SE, Hutchinson, MN 55350
Aero/CM M&O Grant Agreement (Updated 08/26/2025)
MnDOT Agreement No. 1060326
Telephone: (320) 234-4473
E-Mail: dschuetteghutchinsommn.gov
If Grantee's Authorized Representative changes at any time during this Agreement, Grantee must immediately
notify State.
7. Assignment; Amendments; Waiver; Agreement Complete; Electronic Records; Certification
7.1. Assignment. Grantee may neither assign nor transfer any rights or obligations under this Agreement without the
prior consent of the State and a fully executed Assignment Agreement, executed and approved by the same
parties who executed and approved this Agreement, or their successors in office.
7.2. Amendments. An amendment to this Agreement must be in writing and will not be effective until it has been
executed and approved by the same parties who executed and approved the original agreement, or their
successors in office.
7.3. Waiver. If the State fails to enforce any provision of this Agreement, such failure does not waive the provision
or the State's right to subsequently enforce it.
7.4. Agreement Complete. This Agreement contains all prior negotiations and agreements between the State and
Grantee. No other prior understanding regarding this Agreement, whether written or oral, may be used to bind
either party.
7.5. Electronic Records and Signatures. The parties agree to contract by electronic means. This includes using
electronic signatures and converting original documents to electronic records.
7.6. Certification. By signing this Agreement, Grantee certifies that it is not suspended or debarred from receiving
federal or state awards.
Liability and Indemnification. Each party is responsible for its own acts, omissions, and the results thereof to the
extent authorized by law. Minnesota Statutes § 3.736 and other applicable law govern liability of the State. Minnesota
Statutes Chapter 466 and other applicable law govern liability of Grantee. Notwithstanding the foregoing, Grantee
will indemnify, hold harmless, and defend (to the extent permitted by the Minnesota Attorney General) the State
against any claims, causes of actions, damages, costs, and expenses, including reasonable attorneys' fees, arising in
connection with the services performed under this Agreement, asserted by, or resulting from the acts or omissions of
Grantee's contractors, consultants, agents or any other third parties under the direct control of Grantee.
State Audits. Under Minnesota Statutes § 1613.98 subd. 8, the books, records, documents, and accounting procedures
and practices of Grantee, or those of any other party relevant to this grant Agreement, or transactions resulting from
this Agreement, are subject to examination by the State and/or the State Auditor or Legislative Auditor, as
appropriate, for a minimum of six (6) years from the expiration of this Agreement or receipt and approval of all final
reports, whichever is later. Grantee will take timely and appropriate action on all deficiencies identified by an audit.
10. Government Data Practices. Grantee and the State must comply with the Minnesota Government Data Practices
Act, Minnesota Statutes Chapter 13, as it applies to all data provided by the State under this Agreement, and as it
applies to all data created, collected, received, stored, used, maintained or disseminated by Grantee under this
Agreement. The civil remedies of Minnesota Statutes § 13.08 apply to the release of the data referred to in this clause
by either Grantee or the State. If Grantee receives a request to release the data referred to herein, Grantee must
immediately notify the State and consult with the State as to how Grantee should respond to the request. Grantee's
response to the request must comply with applicable law.
11. Workers' Compensation. Grantee certifies that it is in compliance with Minnesota Statutes §176.181, subd. 2,
pertaining to workers' compensation insurance coverage. Grantee's employees and agents will not be considered state
employees. Any claims that may arise under the Minnesota Workers' Compensation Act on behalf of Grantee's
employees, as well as any claims made by any third party as a consequence of any act or omission on the part of
Grantee's employees are in no way the State's obligation or responsibility.
Aero/CM M&O Grant Agreement (Updated 08/26/2025)
MnDOT Agreement No. 1060326
12. Governing Law, Jurisdiction and Venue. Minnesota law, without regard to its choice -of -law provisions, governs
this Agreement. Venue for all legal proceedings arising out of this Agreement, or its breach, must be in the
appropriate state or federal court with competent jurisdiction in Ramsey County, Minnesota.
13. Data Disclosure. Under Minnesota Statutes §270C.65, and other applicable law, Grantee consents to disclosure of its
social security number, federal employer tax identification number and Minnesota tax identification number, already
provided to the State, to federal and state agencies and state personnel involved in the payment of state obligations.
These identification numbers may be used in the enforcement of federal and state laws which could result in action
requiring Grantee to file state tax returns and pay delinquent state tax liabilities, if any, or pay other state liabilities.
14. Termination and Suspension
14.1. Termination by the State. The State or Commissioner of Administration may unilaterally terminate this
Agreement at any time, with or without cause, upon written notice to Grantee. Upon termination, Grantee will
be entitled to payment, determined on a pro rata basis, for services satisfactorily performed.
14.2. Termination for Cause. The State may immediately terminate this Agreement if the State finds that there has
been a failure to comply with the provisions of this Agreement, that reasonable progress has not been made, that
fraudulent or wasteful activity has occurred, that Grantee has been convicted of a criminal offense relating to a
state grant agreement, or that the purposes for which the funds were granted have not been or will not be
fulfilled. The State may take action to protect the interests of the State of Minnesota, including the refusal to
disburse additional funds and requiring the return of all or part of the funds already disbursed.
14.3. Termination for Insufficient Funding. The State may immediately terminate this Agreement if it does not
obtain funding from the Minnesota Legislature or if funding cannot be continued at a level sufficient to pay for
the services contracted for under this Agreement. Termination must be by written or fax notice to Grantee. The
State is not obligated to pay for any services that are performed after notice and effective date of termination.
However, Grantee will be entitled to payment, determined on a pro rata basis, for services satisfactorily
performed to the extent that funds are available. The State will not be assessed any penalty if the Agreement is
terminated because of the decision of the Minnesota Legislature, or other funding source, not to appropriate
funds. The State will provide Grantee notice of the lack of funding within a reasonable time of the State's
receiving that notice.
14.4. Suspension. The State may immediately suspend this Agreement in the event of a total or partial government
shutdown due to its failure to pass an approved budget by the legal deadline. Work performed by Grantee
during a period of suspension will be deemed unauthorized and undertaken at risk of non-payment.
15. Fund Use Prohibited. Grantee will not utilize any funds received pursuant to this Agreement to compensate, either
directly or indirectly, any contractor, corporation, partnership, or business, however organized, which is disqualified
or debarred from entering into or receiving a state contract. This restriction applies regardless of whether the
disqualified or debarred party acts in the capacity of a general contractor, a subcontractor, or as an equipment or
material supplier. This restriction does not prevent Grantee from utilizing these funds to pay any party who might be
disqualified or debarred after Grantee has been awarded funds for the Project. For a list of disqualified or debarred
vendors, see www.mmd.admin.state.mn.us/debarredreport.asp.
16. Discrimination Prohibited by Minnesota Statutes §181.59. Grantee will comply with the provisions of Minnesota
Statutes § 181.59 which requires that every agreement for or on behalf of the State, or any county, city, town,
township, school, school district or any other district in the State, for materials, supplies or construction will contain
provisions by which Grantee agrees that:
16.1. In the hiring of common or skilled labor for the performance of any work under any agreement, or any sub -
agreement, no contractor, material supplier, vendor, or other agent of Grantee will, by reason of race, creed or
color, discriminate against the person or persons who are citizens of the United States or resident aliens who are
qualified and available to perform the work to which the employment relates;
Aero/CM M&O Grant Agreement (Updated 08/26/2025)
MnDOT Agreement No. 1060326
16.2. No contractor, material supplier, vendor, or other agent of Grantee will, in any manner, discriminate against, or
intimidate, or prevent the employment of any person or persons identified herein, or on being hired, prevent or
conspire to prevent, the person or persons from the performance of work under any agreement on account of
race, creed or color;
16.3. A violation of this Section is a misdemeanor; and
16.4. Any subsequent violations of this Section may result in the termination of this Agreement and any sub -
agreements by the State, or any county, city, town, township, school, school district or other entity or person
authorized to enter into agreements for employment, and all money due, or to become due, under this
Agreement or any sub -agreements may be forfeited.
17. Limitation. Under this Agreement, the State is only responsible for disbursing funds. Nothing in this Agreement will
be construed to make the State a principal, co -principal, partner, or joint venturer with respect to the Project(s)
covered herein. The State may provide technical advice and assistance as requested by Grantee; however, Grantee will
remain responsible for providing direction to its contractors and consultants and for administering its agreements with
such entities. Grantee's consultants and contractors are not intended to be third party beneficiaries of this Agreement.
THE REMAINDER OF THIS PAGE HAS BEEN LEFT INTENTIONALLY BLANK
Aero/CM M&O Grant Agreement (Updated 08/26/2025)
MnDOT Agreement No. 1060326
STATE ENCUMBRANCE VERIFICATION
Individual certifies that funds have been encumbered as
required by Minnesota Statutes § 16A.15 and § 16C.05.*
LM
SWIFT Contract (SC) ID No.
Purchase Order (PO) ID No.
*PO staged and to be encumbered with future State fiscal
year funds.
GRANTEE
Grantee certifies that the appropriate persons have
executed this Agreement on behalf of Grantee as required
by applicable articles, bylaws, ordinances, or resolutions.
By:
Print Name:
Title:
Date:
By:
Print Name:
Title:
Date:
DEPARTMENT OF TRANSPORTATION
(with delegated authority)
In
MnDOT CONTRACT MANAGEMENT
Aero/CM M&O Grant Agreement (Updated 08/26/2025)
RESOLUTION NO. 15906
APPROVING AIRPORT MAINTENANCE AND OPERATIONS GRANT
AGREEMENT WITH THE MINNESOTA DEPARTMENT OF
TRANSPORTATION
It is resolved by the City of Hutchinson as follows:
• That it has applied for and been awarded an Airport Maintenance and Operations Grant Agreement by the
Minnesota Department of Transportation, Agreement Number 1060326 ("Agreement");
• That it hereby agrees to the terms and conditions of the Grant Agreement; and
• That the proper signing officers are hereby authorized to execute the above -referenced Grant Agreement and
any amendments thereto on behalf of the City of Hutchinson
[CITY/COUNTY/TOWNSHIP]
Adopted by the City of Hutchinson on this 9th day of September, 2025.
[GRANTEE NAME]
Lo
Print Name:
Title/Date:
ATTESTATION:
(different authorized signor than above)
LM
Print Name:
Title/Date:
Resolution Approving Grant Agreement (8/26/2025) 1
c: HUTCHINSON CITY COUNCIL
HUTCHINSON Request for Board Action
A CITY ON PURPOSE
IIIIIIII
Award for Aircraft Hangar Repair Project (L5P25-05)
Agenda Item:
Department: Public Works
LICENSE SECTION
Meeting Date: 9/9/2025
Application Complete N/A
Contact: Mike Stifter
Agenda Item Type:
Presenter: Mike Stifter
Reviewed by Staff ❑
Consent Agenda 0
Time Requested (Minutes): 5
License Contingency N/A
Attachments: Yes
BACKGROUND/EXPLANATION OFAGENDA ITEM:
Hangar 3 at the airport was damaged in a storm on June 12th. Repair estimates exceeded
$175,000 necessitating a public bid. We are seeking to award the winner of the bid, Rice
Companies, the contracted repair. Insurance will cover the repair less the deductible. There is
also a non -insurance covered line item for $21,512 for new roof purlins. 50% are rotten and
need replacement.
BOARD ACTION REQUESTED:
Approval of Resolution
Fiscal Impact: $ 329,727.70 Funding Source: Insurance
FTE Impact: Budget Change: New Bu
Included in current budget: No
PROJECT SECTION:
Total Project Cost: $ 329,727.70
Total City Cost: $ 46,512.00 Funding Source: Miscellaneous infrastructure fund
Remaining Cost: $ 283,215.70 Funding Source: Insurance
RESOLUTION NO. 15907
RESOLUTION ACCEPTING BID AND AWARDING CONTRACT
LETTING NO. 5/PROJECT NO. 25-05
Whereas, pursuant to an advertisement for bids for the furnishing of all labor and material for the improvement of:
Aircraft Hangar Repair Project: Re -skinning and re -roofing an aircraft hangar at 1810 Butler
Field Drive SW in Hutchinson, MN 55350. The hangar will be referred to as "Hangar 3". 8 bi-
fold hangar doors will also need to be replaced. Hangar 3's dimensions are 240' x 55' with 20'
sidewalls, and
bids were received, opened and tabulated according to law, and the following bids were received complying with
the advertisement:
Bidder Total Bid
Rice Companies, Inc. of Glencoe MN $308,215.70
RAM Buildings, Inc. of Winsted Mn $339,688.00
and whereas, it appears that Rice Companies, Inc. of Glencoe MN is the lowest responsible bidder;
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON,
MINNESOTA:
The mayor and city administrator are hereby authorized and directed to enter into a contract with
Rice Companies, Inc. of Glencoe MN in the amount of $308,215.70 in the name of the City of
Hutchinson, for the improvement contained herein, according to the plans and specifications.
The City Public Works Manager is hereby authorized and directed to return forthwith to all bidders the
deposits made with their bids, except that the deposits of the successful bidder and the next lowest
bidder shall be retained until a contract has been signed, and the deposit of the successful bidder shall
be retained until satisfactory completion of the contract.
Adopted by the Hutchinson City Council this 9th day of September 2025.
Mayor, Gary Forcier
City Administrator, Matthew Jaunich
HUTCHINSON CITY COUNCIL
HUTCHINSW Request for Board Action
A CITY ON PURPOSE,
Agenda Item: Temporary Liquor License - Hutchinson Chamber Foundation
Department: Administration
LICENSE SECTION
Meeting Date: 9/9/2025
Application Complete Yes
Contact: Melissa Starke
Agenda Item Type:
Presenter: Melissa Starke
Reviewed by Staff ✓❑
Consent Agenda
Time Requested (Minutes):
License Contingency N/A
Attachments: Yes
BACKGROUND/EXPLANATION OFAGENDA ITEM:
The Hutchinson Chamber Foundation has submitted a temporary liquor license to dispense liquor at an event being
held at Art's Place on September 18 2025. The Hutchinson Chamber Foundation is a nonprofit organization and
meets the requirements for a temporary liquor license.
BOARD ACTION REQUESTED:
Approve issuing temporary liquor license to Hutchinson Chamber Foundation on September 18, 2025, at Art's Place.
Fiscal Impact: Funding Source:
FTE Impact: Budget Change: No
Included in current budget: No
PROJECT SECTION:
Total Project Cost:
Total City Cost: Funding Source:
Remaining Cost: $ 0.00 Funding Source:
L(D
Alcohol & Gambling Enforcement
Name of organization
Minnesota Department of Public Safety
Alcohol and Gambling Enforcement Division
445 Minnesota Street, Suite 1600, St. Paul, MN 55101
651-201-7507 TTY 651-282-6555
APPLICATION AND PERMIT FOR A 1 DAY
TO 4 DAY TEMPORARY ON -SALE LIQUOR LICENSE
Date of organization Tax exempt number
Organization Address (No PO Boxes) City State Zip Code
-e_QA MN 35Z)
Name &erson making application Business phone Home phone
S SD— !s� z SZ
Date(s) of event Type of organization ❑ Microdistillery ❑ Small Brewer
❑ Club ❑ Charitable ❑ Religious Other non-profit
Organization officer's name City State Zip Code
MN
Organization officer's name City State Zip Code
MN
Organization officer's name City State Zip Code
MN
Location w/?he�re permit will a used. If an outdoor area, describe.
If the applicant will contract for intoxicating liquor service give the name and address of the liquor license providing the service.
Lk ci .�drz- 4A u4ck-'s
If the applicant will carry liquor liability insurance please provide the carrier's name and amount of coverage.
APPROVAL
APPLICATION MUST BE APPROVED BY CITY OR COUNTY BEFORE SUBMITTING TO ALCOHOL AND GAMBLING ENFORCEMENT
City or County approving the license
Fee Amount
Event in conjunction with a community festival ❑ Yes ❑ No
Current population of city
Date Approved
Date
City or County E-mail Address
Please Print Name of City Clerk or County Official Signature City Clerk or County Official
CLERKS NOTICE: Submit this form to Alcohol and Gambling Enforcement Division 30 days prior to event
No Temp Applications faxed or mailed. Only emailed.
ONE SUBMISSION PER EMAIL, APPLICATION ONLY.
PLEASE PROVIDE A VALID E-MAIL ADDRESS FOR THE CITY/COUNTY AS ALL TEMPORARY
PERMIT APPROVALS WILL BE SENT BACK VIA EMAIL. E-MAIL THE APPLICATION SIGNED BY
CITY/COUNTY TO AGE. TEMPORARYAPPLICATION STATE.MN.US
CERTIFICATE OF LIABILITY INSURANCE DATE(MMIDDIYYYY)
6/23/2025
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS
CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES
BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED
REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.
IMPORTANT: if the certificate holder is an ADDITIONAL INSURED, the policy(iss) must have ADDITIONAL INSURED provisions or be endorsed.
If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on
this certificate does not confer rights to the certificate holder in lieu of such endorsement s .
Arthur J. Gallagher Risk Management Services, LLC NAME.*
Kira Mehus
13600 American Blvd W. L k 952-358-7518 _ FAc Ne, _
Suite 500 Eer°I Kira Mehus a' .com _
Bloomington MN 55431 INSURERIS) AFFORDING COVERAGE NAICO
INSURERA: League of Minnesota Cities_ Insurance Trust
INSURED HUTCHIN-01 INSURER B
City of Hutchinson - — - - - —_ —
Attn: Andy Reid INSURERC:
111 Hassan Street SE INSURER D ; -
Hutchinson MN 55350 INSURERE:
OVERAGES CERTIFICATE NUMBER:1667133157 REVISION NUMBER:
THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD
INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS,
EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
POLPCYNUMBER POLICYEPF IPOLICYMEXP LfI11TS
R TYPE OF INSURANCE ��� R,---
COMMERCIAL GENERAL LIABILITY . EACH OCCURRENCE_ $
RGE TO
CLAIMS -MADE OCCUR PREMISES Ma ascu $
G_ENLAGGREGATE LIMIT APPLIES PER:
POLICY ❑ JpECTT 0 LOC
AUTOMOBILE LIABILF Y
ANY AUTO
OWNED
SCHEDULED
� -AUTOS ONLY
AUTOS
HIRED
H
NON -OWNED
AUTOS ONLY
ALTOS ONLY
_ MED EXP (Any one person)
$
PERSONAL & ADV INJURY
$ _
GENERALAGGREGATE
$
I— -
PRODUCTS - COMP/OP AGG
$ —
COMBINED SINGLE LIMIT
$
,.ice accident'
BODILY INJURY (Per person)
S
BODILY INJURY (Per accident)
$
PROPERTYDAMAGE
$
—
$
UMBRELLA LIAB
OCCUR I
- - EXCESS LIAB
CLAIMS -MADE
I EACH OCCURRENCE_
, AGGREGATE $
DED RETENTION
$
- WORKERS COMPENSATION
• PER O H-
AND EMPLOYERS' LIABILI Y
YIN
rA E —_ :ER,
ANYPROPRIETOR/PARTNER/EXECUTIVE
OFFICER/MEMBEREXCLUDED? NIA
E.L. EACH ACCIDENT $
(Mandatory In NH)
If describe
E.L-DISEASE - EA EMPLOYEE S
yes under
DESCRIPTION OF OPERATIONS below
EL DISEASE - POLICY LIMB $
A UqucrLiability
LLC10034609
7/1/2025 7/1/2026 Per Occurrence $1.000,000
I Annual Aggregate $1,000,000
DESCRIPTION OF OPERATIONS I LOCATIONS / VEHICLES (ACORD 101, Addidonal Remarks Schedule, maybe attached If more space is required)
RE: Liquor Store - 245 Washington Ave E, Hutchinson MN 55350
MN Dept. of Public SafetyAJeohol & Gambling
Enforcement
445 Minnesota Street, Suite 222
St. Paul MN 55101
USA
ACORD 25 (2016/03)
CANCELLATION
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE
THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN
ACCORDANCE WITH THE POLICY PROVISIONS.
AUTHORIZED
ts
0 19882015 ACORD CORPORATION. All rights reserved.
The ACORD name and logo are registered marks of ACORD
RA
HUTCHINSON CITY COUNCIL
HUTCHINSON Request for Board Action
A CITY ON PURPOSE.
Approve Issuing Short Term Gambling License to Gopher Campfire Sanctuary
Agenda Item:
Department: Administration
LICENSE SECTION
Meeting Date: 9/9/2025
Application Complete Yes
Contact: Melissa Starke
Agenda Item Type:
Presenter: Melissa Starke
Reviewed by Staff
Consent Agenda
Time Requested (Minutes):
License Contingency No
Attachments: Yes
BACKGROUND/EXPLANATION OFAGENDA ITEM:
Gopher Campfire Sanctuary, a nonprofit organization, has submitted a short-term gambling
license application into administration for review and processing. The application is for an event
the organization is holding on December 3, 2025, at the Sanctuary on Les Kouba Parkway. The
applicant has completed the appropriate application in full and all pertinent information has been
received.
BOARD ACTION REQUESTED:
Approve Issuing Short Term Gambling License to Gopher Campfire Sanctuary on December 3, 2025.
Fiscal Impact: Funding Source:
FTE Impact: Budget Change: New Bu
Included in current budget: No
PROJECT SECTION:
Total Project Cost:
Total City Cost: Funding Source: N/A
Remaining Cost: $ 0.00 Funding Source: N/A
H UTCH I NSON
A CITY ON PURPOSE.
111 Hassan Street Southeast
Hutchinson, MN 55350
(320)587-5151 Fax:(320) 234-4240
City of Hutchinson
APPLICATION FOR GAMBLING DEVICES LICENSE
In provisions of the City of Hutchinson Ordinance Chapter 114
and Minnesota Statutes Chapter 349
All applications are to be received at least 30 days before event in order to be considered
Application Type
Short Term Date(s) _ - / �'3�'rr Fee: $30.0 ' I
Month Da /Year - MonthlDaylYear
Or anization.I-riformation
_ e� I" C)4 'rt-- � 1 Sri -583- yaY/
—� Name Phone Number
t eS 144f yl intv SS�s v
Address where regular meeting are held City State Zip
Federal or State ID: vt _ o)-0 � F � � n
Day and time of meetings?
Is this organization organized under the laws of the State of Oyes ❑ no
How long has the organization been in existence? Sl'fHow may members in the organization?
What is the purpose of the organization? J�►5,.,7y ++-� �� o�C S� c��, y�r
In whose custod will organization records be kept?
(-� Name ' / I T Phone Number
9 T^
Address Ci State zip
Duly Authorized Officer of the Organization Information
True Name
Residence Address
Phone Number
City l State
Date of Birth: f d- 1-4-1 / ? Place of Birth:
Month/day/year
Have you ever been convicted of any crime other than a traffic
offense?
If yes, explain:
City
❑ yes 0(no
Zip
/1�
State
City of Hutchinson
Application for Gambling Devices License
Page 2 of 3
Gamblin❑ Ma
True Name Phone Number
�J 7f f7 j'-Z4/n1.,-i M Al 5- 3S-a
Residence Address city
// State Zip
Date of Birth: _J-/ a > / j'9� > Place of Birth: /n ✓"_
Month/day/year City State
Have you ever been convicted of any crime other than a traffic ❑ yes &Lno
If yes, explain:
How long have you been a member of the organization?
Game Information
Location Al
Name of locati n where game will be player
L 16e, J-,� PG-Ic ,
Address of location where game will be played
Phone Number
City State Zip
Date(s) and/or day(s) gambling devices will be used: I � through Pa 4Uo�S—
Hours of the day�'t 5- A
gambling devices will be used: From �` To '% • �
Maximum number of players: S Oy T , lrtr%
Will prizes be paid in money or merchandise? ❑ money ,,merchandise
Will refreshments be served during the time the gambling devices will be used? ❑ yes *no
If yes, will a charge be made for such refreshments? ❑ Yes ❑ no
Game Information
Location #2 A1/P-
Name of location where game will be played Phone Number
Address of location where game will be played City State Zip
Date(s) and/or day(s) gambling devices will be used: through
AM AM
Hours of the day gambling devices will be used: From pM To PM
Maximum number of players:
Will prizes be paid in money or merchandise? ❑ ❑ merchandise
Will refreshments be served during the time the gambling devices will be used? ❑ yes ❑ no
If yes, will a charge be made for such ❑ ves ❑ no
City of Hutchinson
Application for Gambling Devices License
Page 3 of 3
Officers of the Organization ifnecessary list additional names on se crate sheet
Nam
1 da Al
sy'c�,;,_�
Title
IV71V
S S--?n-
Residence Address
x
City
�e�✓Irt4
Zip
7-e'5-C
e%n�
y—c✓
Name
Title
Residence Address
City
State
Zip
Name
IcQ /7 do (/� /� v'lQ
c, Ll . /) sr vy
Title
AA'-'
Residence Address
City
State
Zip
Officers or Other Persons Paid for Services Information
Nam
V821 lie
list additional names on se
✓G �+. ✓rlvy�!
Residence Address City
60w 11 l 6-5 W
Name
Residence Address City
Name
Residence Address City
Title
State Zip
1-11-e ,-.-t1-,,e -
Title
/'fin/
State Zip
/7e
Title
rnA.
State Zia
Have you (Gambling Manager and Authorized Officer) read, and do you thoroughly understand the
provisions of all laws, ordinances, and regulations governing the operation and use of gambling devices
(as outlined in City of Hutchinson Ordinance 114.20 and Minnesota Statutes Chapter 349)?
Gambling )&Kyes ❑ no Authorized -4es ❑ no C
Initial Initial
I declare that the information I have provided on this application is truthful, and I authorize the City of
Hutchinson to investigate the information submitted. Also, I have received from the City of Hutchinson a
copy of the City Ordinance No. 114.20 relating to gambling and I will familiarize myself with the contents
thereof.
Signature of authorized officer of organization
Of
Internal Use Onl)
of organization
Date
Date
City Council ❑ Approved ❑ denied Signature:
City of Hutchinson
Application for Gambling Devices License
Page 3 of 3
Officers of the Organization ifnecessa list additional names on se arate sheet
SAe, ram 'PtV*71e
Name Title
Yo, 0 fT &s '-,UJ MN S�
Residence Address City State Zip
Name Title
Kesioence Address City State Zip
Name Title
Residence Address Ci State Zi
Officers or Other Persons Paid for Services Information ifnecessa list additional names on separate sheet
Name Title
Residence Address City State Zip
Name Title
Residence Address City State Zip
Name Title
Residence Address City State Zi
Have you (Gambling Manager and Authorized Officer) read, and do you thoroughly understand the
provisions of all laws, ordinances, and regulations governing the operation and use of gambling devices
(as outlined in City of Hutchinson Ordinance 114.20 and Minnesota Statutes Chapter 349)?
Gambling jces ❑ no % Authorized - yes ❑ no e
4r--
Initial Initial
I declare that the information I have provided on this application is truthful, and I authorize the City of
Hutchinson to investigate the information submitted. Also, I have received from the City of Hutchinson a
copy of the City Ordinance No. 114.20 relating to gambling and I will familiarize myself with the contents
thereof.
Signaturi of au horized officer of organization Date
gnature ofgambling m of organization Date
Internal Use Only
City Council ❑ Approved ❑ denied Signature:
CHECK REGISTER A FOR CITY OF HUTCHINSON
CHECK DATES 8/27/25 - 9/9/25
Check Date
Check #
Name
Description
Amount
8/22/2025
EFT
EFTPS
Payroll Report 8/3/25 - 8/16/25
90,499.10
8/22/2025
EFT
MN Dept of Revenue
Payroll Report 8/3/25 - 8/16/25
18,042.79
8/22/2025
EFT
VOYA (Hutch City of)
Payroll Report 8/3/25 - 8/16/25
475.00
8/22/2025
EFT
Child Support
Payroll Report 8/3/25 - 8/16/25
706.96
8/22/2025
EFT
UNUM Voluntary Insurance
Payroll Report 8/3/25 - 8/16/25
317.07
8/22/2025
EFT
PERA
Payroll Report 8/3/25 - 8/16/25
67,830.64
8/22/2025
EFT
Health Equity
Payroll Report 8/3/25 - 8/16/25
17,778.47
8/22/2025
EFT
UNUM Life & ADD Insurance
Payroll Report 8/3/25 - 8/16/25
1,016.31
8/22/2025
EFT
Mission Square
Payroll Report 8/3/25 - 8/16/25
3,730.62
8/22/2025
EFT
VOYA (CITY OF HUTCH)
Payroll Report 8/3/25 - 8/16/25
250.00
8/22/2025
302769
Manual Employee Check
Payroll Report 8/3/25 - 8/16/25
975.73
8/22/2025
302770
HART
Payroll Report 8/3/25 - 8/16/25
521.53
8/22/2025
302771
LELS Union Dues
Payroll Report 8/3/25 - 8/16/25
365.00
8/22/2025
302772
MNPEA
Payroll Report 8/3/25 - 8/16/25
720.00
9/9/2025
302773
ACE HARDWARE- 1315
REPAIR & MAINTSUPPLIES- MULTIPLE DEPTS
483.80
9/9/2025
302774
ALL-AMERICAN ARENA PRODUCTS
YELLOW KICKPLATE FOR BOARDS - ARENA
249.56
9/9/2025
302775
AMERICAN BOTTLING CO
COST OF GOODS SOLD - LIQUOR HUTCH
400.12
9/9/2025
302776
ARTISAN BEER COMPANY
COST OF GOODS SOLD - LIQUOR HUTCH
751.70
9/9/2025
302777
AUTO-CHLOR SYSTEM
DISH WASHER AGREEMENT - SR DINING
93.71
9/9/2025
302778
BCA
FEDERAL BACKGROUND CHECK - MV
32.00
9/9/2025
302779
BEACON ATHLETICS
VMF GRANDSTAND CUSTOM NET- PARKS
754.92
9/9/2025
302780
BELLBOY CORPORATION
COST OF GOODS SOLD - LIQUOR HUTCH
2,517.62
9/9/2025
302781
BENEFIT EXTRAS INC
COBRA ADMIN FEES
22.50
9/9/2025
302782
BERNICK'S
COST OF GOODS SOLD - LIQUOR HUTCH
1,303.38
9/9/2025
302783
BOBBING BOBBER BREWING CO
COST OF GOODS SOLD - LIQUOR HUTCH
440.69
9/9/2025
302784
BRADLEY SECURITY & ELECTRIC LLC
EXTRA KEYS FOR REC BUILDING
145.00
9/9/2025
302785
BREAKTHRU BEVERAGE MN WINE & SPIRITS
COST OF GOODS SOLD - LIQUOR HUTCH
26,146.44
9/9/2025
302786
C & L DISTRIBUTING
COST OF GOODS SOLD - LIQUOR HUTCH
62,547.56
9/9/2025
302787
CINTAS CORPORATION
SUPPLIES & SERVICE - MULTIPLE DEPTS
275.96
9/9/2025
302788
CIVIC SYSTEMS LLC
SEMI-ANNUAL SUPPORT & HOSTING FEES
14,390.00
9/9/2025
302789
COUNTRYSIDE FLAGPOLE
REPAIR FLAGPOLE +2 FLAGS - CC
701.00
9/9/2025
302790
DAHLHEIMER BEVERAGE
COST OF GOODS SOLD - LIQUOR HUTCH
71,919.41
9/9/2025
302791
DEHN, PETER
REIMB: SAFETY FOOTWEAR -AIRPORT
225.00
9/9/2025
302792
DUININCK INC
L1P25-01 DALE ST SW PROJECT PAYMENT#3
617,542.07
9/9/2025
302793
ECOLAB PEST ELIMINATION
PESTCONTROL- CREEKSIDE
673.02
9/9/2025
302794
FARM -RITE EQUIPMENT
TOOL CAT REPAIRS -PARKS
4,835.21
9/9/2025
302795
FASTENAL COMPANY
WEST RINK BOARD REPAIR - ARENA
932.26
9/9/2025
302796
FENSKE'S STUMP REMOVAL
STUMP REMOVALS - STREETS
3,400.00
9/9/2025
302797
FINNLY TECH INC
FINNLYSOFTWARE - ARENA
3,124.00
9/9/2025
302798
GALLS LLC
POLO SHIRTS - POLICE
189.01
9/9/2025
302799
GAVIN, JANSSEN, STABENOW, & MOLDAN LTD
LEGAL
3,700.00
9/9/2025
302800
_PROSECUTIONS-
GRAINGER
REPAIR & MAINT SUPPLIES - MULTIPLE DEPTS
212.71
9/9/2025
302801
GRASSLAND SOLUTIONS
REPLACE GATE OPERATOR - WATER
11,660.00
9/9/2025
302802
HAGER JEWELRY INC
NAMEPLATE - ENG
21.00
9/9/2025
302803
HANSEN, GEOFF
REIMB: SAFETY FOOTWEAR - STREETS
195.95
9/9/2025
302804
HANSON PAVING
WATER PLANT ENTRANCE ROAD
43,760.00
9/9/2025
302805
HAWKINS INC
CHEMICALS - MULTIPLE DEPTS
9,543.17
9/9/2025
302806
HILLYARD / HUTCHINSON
REPAIRS, SUPPLIES - MULTIPLE DEPTS
880.75
9/9/2025
302807
HJERPE CONTRACTING
REPAIRS, NEW LINES - WATER
16,994.00
9/9/2025
302808
HOFF, RANDY
FLOWERS - POLICE
45.00
9/9/2025
302809
HOFFMAN ELECTRIC MN LLC
CAMPGROUND SERVICE CALL FOR FULL HOOK UP
640.90
9/9/2025
302810
HOISINGTON KOEGLER GROUP INC
CONCEPT PLANNING BURNS MANOR
4,425.00
9/9/2025
302811
HOME CITY ICE COMPANY
COST OF GOODS SOLD - LIQUOR HUTCH
1,042.46
9/9/2025
302812
HORIZON COMMERCIAL POOL SUPPLY
SODIUM BICARBONATE - WATERPARK
1,181.60
9/9/2025
302813
HUTCHINSON CHAMBER & TOURISM
JULY LODGING TAX
15,312.11
9/9/2025
302814
HUTCHINSON HRA
HOME REPAIR GRANT- HRA
126.00
9/9/2025
302815
HUTCHINSON JUNIOR LEAGUE BASEBALL
HJLB REIMB - REC
28,760.00
9/9/2025
302816
HUTCHINSON WHOLESALE #1550
EQUIPMENT PARTS - MULTIPLE DEPTS
488.72
9/9/2025
302817
HUTCHINSON WHOLESALE #1552
EQUIPMENT PARTS - MULTIPLE DEPTS
71.20
CHECK REGISTER A FOR CITY OF HUTCHINSON
CHECK DATES 8/27/25 - 9/9/25
Check Date
Check #
Name
Description
Amount
9/9/2025
302818
IDEAL SERVICE INC
VFD START UP 1&2 AT MAIN LIFT - WWTP
2,506.50
9/9/2025
302819
INSIGHT PUBLIC SECTOR INC
VMWARE ADDITIONAL LICENSES - MULTIPLE DEPTS
983.28
9/9/2025
302820
JOHNSON BROTHERS LIQUOR CO
COST OF GOODS SOLD - LIQUOR HUTCH
65,152.01
9/9/2025
302821
JOMAS HILL WINERY
COST OF GOODS SOLD - LIQUOR HUTCH
864.00
9/9/2025
302822
K & A CONTRACTING LLC
SHADY RIDGE CURB, COVER HOLES - MULTIPLE DEPTS
2,840.00
9/9/2025
302823
KERI'S CLEANING & HANDYMAN SERVICES
CLEANING SERVICES AT LIBRARY
120.00
9/9/2025
302824
KIN NEY & LANGE P.A.
WONDERBLEND RENEWAL- LEGAL
1,225.00
9/9/2025
302825
LEAGUE OF MN CITIES -INS TRUST
LMC CA456630 CLAIM PAYMENT- PARKS
1,199.42
9/9/2025
302826
LITCHFIELD BUILDING CENTER
SONO TUBE VMF FRONTGATE FOOTINGS
324.41
9/9/2025
302827
MARCO TECHNOLOGIES LLC
PRINTING CONTRACT- MULTIPLE DEPTS
999.79
9/9/2025
302828
MAVERICK WINE
COST OF GOODS SOLD - LIQUOR HUTCH
3,843.06
9/9/2025
302829
MCLEOD COUNTY AUDITOR -TREASURER
1164 BENJAMIN AVE SE PROPERTY TAXES - EDA
3,892.00
9/9/2025
302830
MCLEOD COUNTY HHW
RECYCLING - CC
73.50
9/9/2025
302831
MCLEOD COUNTY SHERIFF'S OFFICE
TRAINING AMMUNITION - POLICE
650.00
9/9/2025
302832
MENARDS HUTCHINSON
REPAIR & MAINTSUPPLIES- MULTIPLE DEPTS
841.60
9/9/2025
302833
MINI BIFF
PORTATOILET- PARKS
178.50
9/9/2025
302834
MINNESOTA DEPT OF HEALTH
STATE FEE - WATER CONNECTIONS
12,512.00
9/9/2025
302835
MINNESOTA DEPT OF LABOR & INDUSTRY
BOILER & VESSEL INSPEC - MULTIPLE DEPTS
225.00
9/9/2025
302836
MINNESOTA VALLEY TESTING LAB
PFASTESTING BIOSOLIDS- WWTP
464.40
9/9/2025
302837
NEUMANN, LYNN
REIMB: MRPATRAINING- PARKS
82.65
9/9/2025
302838
NORTHERN SAFETY & INDUSTRIAL
FIRST AID-HORNET/WASP/BEETINGS - HATS
23.63
9/9/2025
302839
NOTHING BUT HEMP
COST OF GOODS SOLD - LIQUOR HUTCH
600.00
9/9/2025
302840
OFFICE DEPOT
OFFICE SUPPLIES - MULTIPLE DEPTS
797.28
9/9/2025
302841
OLSEN CHAIN & CABLE CO
CRAINE TRUCK CABLE REPAIR- WWTP
709.30
9/9/2025
302843
PARK NICOLLET CLINIC
CAM - EVENT CTR
1,500.00
9/9/2025
302844
PAUSTIS WINE COMPANY
COST OF GOODS SOLD - LIQUOR HUTCH
975.00
9/9/2025
302845
PEOPLEREADY INC
TEMPORARY LABOR - CREEKSIDE
1,664.99
9/9/2025
302846
PHILLIPS WINE & SPIRITS
COST OF GOODS SOLD - LIQUOR HUTCH
16,207.43
9/9/2025
302847
PIONEER ATHLETICS / PIONEER MFG
PAINT SUPPLIES FOR VMF - PARKS
200.00
9/9/2025
302848
PIONEERLAND LIBRARY SYSTEM
3RD QTR FUNDING REQUEST- LIBRARY
52,202.00
9/9/2025
302849
P LU N KETTS P EST CO NTRO L
PEST CONTROL - ARENA
114.37
9/9/2025
302850
POLYDYNE INC
DEWATERING POLYMER - WWTP
913.50
9/9/2025
302851
PROFESSIONAL WATER TECHNOLOGIES INC
SPECTRAGUARD 100 ANTISCALANT- WATER
7,126.86
9/9/2025
302852
RED BULL DISTRIBUTION COMPANY INC
COST OF GOODS SOLD - LIQUOR HUTCH
374.10
9/9/2025
302853
RUNNING'SSUPPLY
REPAIR & MAINTSUPPLIES- MULTIPLE DEPTS
69.98
9/9/2025
302854
S&S TRUCKING LLC
CREEKSIDE FREIGHT TO MULTIPLE LOCATIONS
900.00
9/9/2025
302855
SAM'S TIRE SERVICE
TIRES - POLICE
552.00
9/9/2025
302856
SHAW, KAREN
YOGA/ PILATES INSTR - SR CTR
210.00
9/9/2025
302857
SHERWIN WILLIAMS
PAINT FOR ARENA
718.90
9/9/2025
302858
SNAP -ON INDUSTRIAL
SCAN TOOL DATAPLAN/UPDATES- HATS
1,531.02
9/9/2025
302859
SOUTHERN GLAZER'S WINE AND SPIRITS
COST OF GOODS SOLD - LIQUOR HUTCH
19,997.64
9/9/2025
302860
STANDARD PRINTING-N-MAILING
SIGNS,COPIES- CREEKSIDE
90.42
9/9/2025
302861
STREICH TRUCKING
CREEKSIDE FREIGHT TO MULTIPLE LOCATIONS
7,200.00
9/9/2025
302862
THOMPSON EXCAVATING LLC
REED SEDGE PEAT- CREEKSIDE
4,060.00
9/9/2025
302863
TRI COUNTY WATER
SOFTENER SALT, BOTTLE WATER - MULTIPLE DEPTS
142.00
9/9/2025
302864
TWO-WAY COMMUNICATIONS INC
STOCK -PLOW TRUCKS- STREETS
311.60
9/9/2025
302865
UNITED FARMERS COOP
DIESEL FUEL- HATS
18,691.26
9/9/2025
302866
VIKING BEER
COST OF GOODS SOLD - LIQUOR HUTCH
24,504.00
9/9/2025
302867
VIKING COCA COLA
COST OF GOODS SOLD - LIQUOR HUTCH
553.15
9/9/2025
302868
VINOCOPIA INC
COST OF GOODS SOLD - LIQUOR HUTCH
1,224.54
9/9/2025
302869
VIVID IMAGE
WEB PAGE REDESIGNS - CITY/HUC/HRA/PRCE
20,750.00
9/9/2025
302870
WASTE MANAGEMENT OF WI -MN
REFUSE TAKEN TO LANDFILL
14,220.80
9/9/2025
302871
WINE COMPANY, THE
COST OF GOODS SOLD - LIQUOR HUTCH
2,364.00
9/9/2025
302872
WINN EXTERIORS LLC
HOME REPAIR GRANT- HRA
1,260.00
9/9/2025
302873
WM MUELLER & SONS
L2P25-02 2025 ST IMROV PROJECTS - PAYMENT#5
342,666.55
9/9/2025
302874
WM MUELLER & SONS
1/4 VIRGIN SAND BLACKTOP - STREETS
356.72
9/9/2025
302875
ANDERSON, PATRICIA
UB REFUND
34.48
9/9/2025
302876
BARTA, NATHAN
UB REFUND
54.01
9/9/2025
302877
CASSENS, BRANDON & MADDISON
UB REFUND
135.80
CHECK REGISTER A FOR CITY OF HUTCHINSON
CHECK DATES 8/27/25 - 9/9/25
Check Date
Check #
Name
Description
Amount
9/9/2025
302878
HERITAGE SQAPTS
UB REFUND
493.51
9/9/2025
302879
JENSEN, ELENA
UB REFUND
46.68
9/9/2025
302880
JOHNSON, ALEXIA
UB REFUND
96.74
9/9/2025
302881
MATTER, ANN
UB REFUND
70.50
9/9/2025
302882
NICCUM, JASON
UB REFUND
61.71
9/9/2025
302883
PETERSON, PAT
UB REFUND
48.22
9/9/2025
302884
PRICE, MARYANN
UB REFUND
39.23
9/9/2025
302885
TLC MANAGEMENT SERVICES LLC
UB REFUND
57.53
9/9/2025
302886
TLC MANAGMENT SERVICES LLC
UB REFUND
57.53
Total - Check Register A:
$ 1,802,341.83
CHECK REGISTER B FOR CITY OF HUTCHINSON
CHECK DATES 8/27/25 - 9/9/25
Check Date
Check #
Name
Description
Amount
9/9/2025
302842
OUTDOOR MOTION
BIKE REPAIR
27.00
Total - Check Register B:
c: HUTCHINSON CITY COUNCIL
HUTCHINSON Request for Board Action
A CITY ON PURPOSE
IIIIIIII
Public Hearing for Dale Street SW (L1/P25-01)
Agenda Item:
Department: PW/Eng
LICENSE SECTION
Meeting Date: 9/9/2025
Application Complete N/A
Contact: Mike Stifter
Agenda Item Type:
Presenter: Mike Stifter
Reviewed by Staff ❑
Public Hearing
Time Requested (Minutes): 15
License Contingency N/A
Attachments: Yes
BACKGROUND/EXPLANATION OFAGENDA ITEM:
City staff will be administering a Public Hearing for the Dale Street SW project.
Following a brief project overview by City staff and possible public comments, staff will request
that the City Council move forward with the final preparation/approval of project
plans/specifications. The scheduled bid opening date was Tuesday, February 11th (1.00 PM).
BOARD ACTION REQUESTED:
Approval of Resolution
Fiscal Impact: Funding Source:
FTE Impact: Budget Change: New Bu
Included in current budget: Yes
PROJECT SECTION:
Total Project Cost:
Total City Cost: Funding Source: N/A
Remaining Cost: $ 0.00 Funding Source: N/A
RESOLUTION NO. 15903
RESOLUTION ORDERING IMPROVEMENT
AND PREPARATION OF PLANS AND SPECIFICATIONS
LETTING NO. 1/PROJECT NO. 25-01
WHEREAS, a resolution of the City Council adopted the 22nd day of October 2024, fixed a date for a
Council Hearing on the following improvements:
Dale Street SW (South Grade Rd SW to Roberts Rd SW): Full depth reclamation of street,
including partial curb and gutter replacement, water main, sanitary sewer and storm sewer
repairs, restoration and appurtenances.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON,
MINNESOTA:
1. Such improvement is necessary, cost-effective, and feasible as detailed in the feasibility report.
2. Such improvement is hereby ordered as proposed in the resolution adopted the 22nd day of October
2024.
3. Such improvement has no relationship to the comprehensive municipal plan.
4. Justin Black is hereby designated as the engineer forthis improvement. The engineer shall prepare
plans and specifications for the making of such improvement.
5. The City Council declares its official intent to reimburse itself for the costs of the improvement from
the proceeds of tax exempt bonds.
Adopted by the Council this 9th day of September 2025.
Mayor: Gary Forcier
City Administrator: Matthew Jaunich
c: HUTCHINSON CITY COUNCIL
HUTCHINSON Request for Board Action
A CITY ON PURPOSE
IIIIIIII
Public Hearing for 2025 Street Improvement Projects (L2/P25-02)
Agenda Item:
Department: PW/Eng
LICENSE SECTION
Meeting Date: 9/9/2025
Application Complete N/A
Contact: Mike Stifter
Agenda Item Type:
Presenter: Mike Stifter
Reviewed by Staff ❑
Public Hearing
Time Requested (Minutes): 15
License Contingency N/A
Attachments: Yes
BACKGROUND/EXPLANATION OFAGENDA ITEM:
City staff will be administering a Public Hearing for the 2025 Street Improvement projects.
Following a brief project overview by City staff and possible public comments, staff will request
that the City Council move forward with the final preparation/approval of project
plans/specifications. The scheduled bid opening date was Tuesday, February 18th (1.00 PM).
BOARD ACTION REQUESTED:
Approval of Resolution
Fiscal Impact: Funding Source:
FTE Impact: Budget Change: New Bu
Included in current budget: Yes
PROJECT SECTION:
Total Project Cost:
Total City Cost: Funding Source: N/A
Remaining Cost: $ 0.00 Funding Source: N/A
RESOLUTION NO. 15904
RESOLUTION ORDERING IMPROVEMENT
AND PREPARATION OF PLANS AND SPECIFICATIONS
LETTING NO. 2/PROJECT NO. 25-02
WHEREAS, a resolution of the City Council adopted the 22nd day of October 2024, fixed a date for a
Council Hearing on the following improvements:
2025 Street Improvement Projects: Hassan Street SE (1 st Avenue NE to Oakland Avenue
SE) Full depth reclamation of street, including partial curb and gutter replacement, water
main, sanitary sewer and storm sewer repairs restoration and appurtenances. 1 st Ave SE
(Main Street S to Jefferson Street SE) Full depth reclamation of street, including partial curb
and gutter replacement, restoration and appurtenances. 3rd Ave SE (Main Street S to
Hassan Street SE) Full depth reclamation of street, including partial curb and gutter
replacement, storm sewer replacement restoration and appurtenances. 6th Ave SE (Main
Street S to Hassan Street SE) Full depth reclamation of street, including partial curb and
gutter replacement, restoration and appurtenances. 7th Ave SE (Main Street S to Hassan
Street SE) Full depth reclamation of street, including partial curb and gutter replacement,
storm sewer replacement restoration and appurtenances. Stoney Point Rd SW (School Rd
SW to Roberts Rd SW) Full depth reclamation of street, including partial curb and gutter
replacement, restoration and appurtenances.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON,
MINNESOTA:
1. Such improvement is necessary, cost-effective, and feasible as detailed in the feasibility report.
2. Such improvement is hereby ordered as proposed in the resolution adopted the 22nd day of October
2024.
3. Such improvement has no relationship to the comprehensive municipal plan.
4. Justin Black is hereby designated as the engineer for this improvement. The engineer shall prepare
plans and specifications for the making of such improvement.
5. The City Council declares its official intent to reimburse itself for the costs of the improvement from
the proceeds of tax exempt bonds.
Adopted by the Council this 9th day of September 2025.
Mayor: Gary Forcier
City Administrator: Matthew Jaunich
RA
HUTCHINSON CITY COUNCIL
HUTCHINSON Request for Board Action
A CITY ON PURPOSE.
RESOLUTION APPROVING THE ADOPTION OF A MODIFICATION OF A DEVELOPMENT PROGRAM FOR MUNICIPAL DEVELOPMENT DISTRICT NO. 4', ESTABLISHING TAX INCREMENT FINANCING
DISTRICT NO. 4-24 WITHIN MUNICIPAL DEVELOPMENT DISTRICT NO. 4, APPROVING THE TAX INCREMENT FINANCING PLAN THEREFOR', AUTHORIZING AN INTERFUND LOAN FOR TAX
INCREMEMNT FINANCING DISTRICT NO. 4-24', AUTHORIZING EXECUTION OF A DEVELOPMENT AGREEMENT', APPROVING THE ELIMINATION OF PARCEL FROM TAX INCREMNT FINANCING
Agenda Item:
DISTRCIT NO 4-16 WITHIN MUNICIPAL DEVELOPMENT DISTRICT NO.4, AND AUTHORIZING THE FORGIVENESS OF AN INTERFUND LOAN FOR TAX INCREMENT FINANCING DISTRICT NO.4-16
Department: EDA
LICENSE SECTION
Meeting Date: 9/9/2025
Application Complete N/A
Contact: Miles R. Seppelt
Agenda Item Type:
Presenter: Miles R. Seppelt
Reviewed by Staff ❑
Public Hearing
Time Requested (Minutes): 15
License Contingency N/A
Attachments: Yes
BACKGROUND/EXPLANATION OFAGENDA ITEM:
The purpose of the public hearing would be to obtain public comment on (A) establishment of TIF
District 4-24, a housing TIF District for the Landing project, (B) approving the Tax Increment
Financing Plan for the project; (C) authorizing an inter -fund loan; (D) authorizing the execution of a
Development Agreement with the Developer; (E) removing a parcel from TIF District 4-16; and (F)
authorizing forgiveness of an inter -fund loan for TIF District 4-16.
CG Real Estate Partners of St. Cloud is proposing to construct an 81-unit market rate apartment
complex on the site, located at 126 Franklin Street NW. This would be a four-story structure, with
parking on the first level and three levels of apartments above it. Amenities would include a roof -top
patio, another outdoor patio & fire pit and an enclosed dog park. Construction would begin in late
September and would take approximately 12-15 months.
ATTACHED for your review please find- (1) TIF Plan 4-24; (2) Modification to TIF Plan 4-16; (3)
Development Agreement between the City and the Developer; and (4) the Resolution approving all
the proposed actions.
Staff will be on hand at the council meeting to provide additional information and answer any
questions you may have.
In the meantime, if you have any questions or need additional information, please give me a call
anytime at 234-4223.
BOARD ACTION REQUESTED:
Adoption of resolution and authorization for Mayor & City Staff to sign
Fiscal Impact: Funding Source:
FTE Impact: Budget Change: New Bu
Included in current budget: No
PROJECT SECTION:
Total Project Cost:
Total City Cost: Funding Source:
Remaining Cost: $ 0.00 Funding Source:
Adoption Date: September 9, 2025
City of Hutchinson
McLeod County, Minnesota
MODIFICATION TO THE
DEVELOPMENT PROGRAM
Development District No. 4
Tax Increment Financing (TIF) Plan
Establishment of Tax Increment
Financing District No. 4-24
(a housing district)
14%
EHLERS
95M PUBLIC FINANCE ADVISORS
Prepared by:
Ehlers
3001 Broadway Street, Suite 320
Minneapolis, Minnesota 55413
BUILDING COMMUNITIES. IT'S WHAT WE DO.
Modification to the Development Program for Development District No. 4 1
FOREWORD 1
Tax Increment Financing Plan for Tax Increment Financing District No. 4-24
2
FOREWORD
OA
STATUTORY AUTHORITY 2
STATEMENT OF OBJECTIVES 2
DEVELOPMENT PROGRAM OVERVIEW 3
DESCRIPTION OF PROPERTY IN THE DISTRICT AND PROPERTY TO BE
ACQUIRED 3
DISTRICT CLASSIFICATION
DURATION & FIRST YEAR OF DISTRICT'S TAX INCREMENT 5
ORIGINAL TAX CAPACITY, TAX RATE & ESTIMATED CAPTURED NET TAX
CAPACITY VALUE/INCREMENT & NOTIFICATION OF PRIOR PLANNED
IMPROVEMENTS 5
SOURCES OF REVENUE/BONDS TO BE ISSUED 7
USES OF FUNDS 7
ESTIMATED IMPACT ON OTHER TAXING JURISDICTIONS 8
SUPPORTING DOCUMENTATION 11
DISTRICT ADMINISTRATION 11
Appendix A: Map of Development District No. 4 and the TIF District
Appendix B: Estimated Cash Flow for the District
Appendix C: Findings Including But/For Qualifications
Modification to the Development Program for
Development District No. 4
FOREWORD
The following text represents a Modification to the Development Program for
Development District No. 4. This modification represents a continuation of the
goals and objectives set forth in the Development Program for Development
District No. 4 originally adopted by the City Council in 1980 and modified
from time to time. Generally, the substantive changes include the
establishment of Tax Increment Financing District No. 4-24.
For further information, a review of the Development Program for
Development District No. 4, is recommended. It is available from the City
Administrator at the City of Hutchinson. Other relevant information is
contained in the tax increment financing plans for the tax increment financing
districts located within Development District No. 4.
City of Hutchinson
Tax Increment Financing District No. 4-24
Tax Increment Financing Plan for Tax Increment
Financing District No. 4-24
FOREWORD
The City of Hutchinson (the "City"), staff and consultants have prepared the
following information to expedite the Establishment of Tax Increment
Financing District No. 4-24 (the "District"), a housing tax increment financing
district, located in Development District No. 4.
STATUTORY AUTHORITY
Within the City, there exist areas where public involvement is necessary to
cause development or redevelopment to occur. To this end, the City has
certain statutory powers pursuant to Minnesota Statutes ("M.S."), Sections
469.724 - 469.733, inclusive, as amended, and M.S., Sections 469.774 to
469.7794, inclusive, as amended (the "TIF Act"), to assist in financing public
costs related to this project.
This section contains the Tax Increment Financing Plan (the "TIF Plan") for the
District. Other relevant information is contained in the Modification to the
Development Program for Development District No. 4.
STATEMENT OF OBJECTIVES
The District currently consists of six (6) parcels of land and adjacent roads
and internal rights -of -way. The District is being created to facilitate
development of vacant property in the City into an approximately 81-unit
apartment building, a portion of which will be designated as affordable. The
City has not entered into an agreement at the time of preparation of this TIF
Plan, but the intended developer is GC Real Estate Partners, LLC (or a
designated affiliate) and development is likely to start in 2025. This TIF Plan is
expected to achieve many of the objectives outlined in the Development
Program for Development District No. 4.
The activities contemplated in the Modification to the Development Program
and the TIF Plan do not preclude the undertaking of other qualified
development or redevelopment activities. These activities are anticipated to
occur over the life of Development District No. 4 and the District.
City of Hutchinson
Tax Increment Financing District No. 4-24 2
DEVELOPMENT PROGRAM OVERVIEW
Pursuant to the Development Program and authorizing state statutes, the City
is authorized to undertake the following activities in the District:
1. Property to be Acquired - The City currently owns the property
within the District. Selected property within the District may be
acquired by the City and is further described in this TIF Plan.
2. Relocation - Relocation services, to the extent required by law,
are available pursuant to M.S., Chapter 117 and other relevant state
and federal laws.
3. Upon approval of a developer's plan relating to the project and
completion of the necessary legal requirements, the City may sell
to a developer selected properties that it may acquire within the
District or may lease land or facilities to a developer.
4. The City may perform or provide for some or all necessary
acquisition, construction, relocation, demolition, and required
utilities and public street work within the District.
DESCRIPTION OF PROPERTY IN THE DISTRICT AND PROPERTY
TO BE ACQUIRED
The District encompasses all property and adjacent roads rights -of -way and
abutting roadways identified by the parcels listed below.
Parcel numberAddress
23-056-2880
126 Franklin St NW
Owner
Hutchinson
23-056-2930
145 Glen St N
Hutchinson
23-056-2920
135 Glen St N
Hutchinson
23-056-2910
125 Glen St N
Hutchinson
23-056-2900
145 1st Ave NW
Hutchinson
23-056-2890
135 1st Ave NW
Hutchinson
Note: Parcel 23-056-2880 being included in the District will be removed from Tax
Increment Financing District No. 4-16 prior to establishment of the District.
Please also see the map in Appendix A for further information on the location
of the District.
City of Hutchinson
Tax Increment Financing District No. 4-24 3
The City may acquire any parcel within the District including interior and
adjacent street rights of way. Any properties identified for acquisition will be
acquired by the City only in order to accomplish one or more of the following:
storm sewer improvements; provide land for needed public streets, utilities
and facilities; or carry out land acquisition, site improvements, clearance
and/or development to accomplish the uses and objectives set forth in this
plan. The City may acquire property by gift, dedication, condemnation or
direct purchase from willing sellers in order to achieve the objectives of this
TIF Plan. Such acquisitions will be undertaken only when there is assurance of
funding to finance the acquisition and related costs.
The City currently owns all parcels of the property to be included in the
District.
DISTRICT CLASSIFICATION
The City, in determining the need to create a tax increment financing district in
accordance with the TIF Act finds that the District, to be established, is a
housing district pursuant to M.S., Section 469.774, Subd. 11 and M.S., Section
469. 7767.
• The District consists of six (6) parcels
• The development will consist of 81-units of multi -family rental housing
• At least 20% of the units will be occupied by persons or households with
incomes less than 50% of area median income, or at least 40% of the units
will be occupied by persons or households with incomes less than 60% of
area median income
• No more than 20% of the square footage of the building that is receiving
assistance from tax increment consists of commercial, retail or other non-
residential uses.
Pursuant to M.S., Section 469.776, Subd. 7, the District does not contain any
parcel or part of a parcel that qualified under the provisions of M.S., Sections
273.777, 273.772, or 273.774 or Chapter 473H for taxes payable in any of the five
calendar years before the filing of the request for certification of the District.
City of Hutchinson
Tax Increment Financing District No. 4-24 4
DURATION & FIRST YEAR OF DISTRICT'S TAX INCREMENT
Pursuant to M.S., Section 469.775, Subd. 7, and Section 469.776, Subd. 7, the
duration and first year of tax increment of the District must be indicated within
the TIF Plan. Pursuant to M.S., Section 469.776, Subd. lb., the duration of the
District will be 25 years after receipt of the first increment by the City (a total
of 26 years of tax increment). The City elects to receive the first tax increment
in 2027, which is no later than four years following the year of approval of the
District.
Thus, it is estimated that the District, including any modifications of the TIF Plan
for subsequent phases or other changes, would terminate after 2052, or when
the TIF Plan is satisfied. The City reserves the right to decertify the District prior
to the legally required date.
ORIGINAL TAX CAPACITY, TAX RATE & ESTIMATED CAPTURED
NET TAX CAPACITY VALUE/INCREMENT & NOTIFICATION OF
PRIOR PLANNED IMPROVEMENTS
Pursuant to M.S., Section 469.774, Subd. 7 and M.S., Section 469.777, Subd. 7,
the Original Net Tax Capacity (ONTC) as certified for the District will be based
on the market values placed on the property by the assessor in 2025 for taxes
payable 2026.
Pursuant to M.S., Section 469.777, Subds. 7 and 2, the County Auditor shall
certify in each year (beginning in the payment year 2027) the amount by
which the original value has increased or decreased as a result of:
Change in tax exempt status of property;
2. Reduction or enlargement of the geographic boundaries of the District;
3. Change due to adjustments, negotiated or court -ordered abatements;
4. Change in the use of the property and classification;
S. Change in state law governing class rates; or
6. Change in previously issued building permits.
In any year in which the current Net Tax Capacity (NTC) value of the District
declines below the ONTC, no value will be captured and no tax increment will
be payable to the City.
The original local tax rate for the District will be the local tax rate for taxes
payable 2026, assuming the request for certification is made before June 30,
2026. The rates for 2026 were not available at the time the District was
established.
City of Hutchinson
Tax Increment Financing District No. 4-24 5
Estimates for the ONTC and the Original Local Tax Rate for the District
appear in the table below.
Pursuant to M.S., Section 469.774 Subd. 4 and M.S., Section 469.777, Subd. 1, 2,
and 4, the estimated Captured Net Tax Capacity (CTC) of the District, within
Development District No. 4, upon completion of the project within the District,
will annually approximate tax increment revenues as shown in the table
below. The City requests 100% of the available increase in tax capacity be
used for repayment of the obligations of the City and current expenditures,
beginning in the tax year payable 2027. The Project Tax Capacity (PTC) listed
is an estimate of value when the project within the District are completed.
Estimated Development Tax Capacity upon completion 160,249
.ess: Estimated Original Net Tax Capacity (ONTC) 3,265
Estimated Captured Tax Capacity (CTC) 156,984
Pay
x Original Local Tax Rate 129.0125% 2025
Estimated Annual Tax Increment $202,529
Percent Retained by the City 100%
Note: Tax capacity includes a 1% inflation factor for the duration of the District. The tax
capacity included in this chart is the estimated tax capacity of the District in year 26. For
reference, the tax capacity of the District upon project completion is estimated to be
$127,469.
Pursuant to M.S., Section 469.777, Subd. 4, the City shall, after a due and
diligent search, accompany its request for certification to the County Auditor
or its notice of the District enlargement pursuant to M.S., Section 469.775,
Subd. 4, with a listing of all properties within the District or area of
enlargement for which building permits have been issued during the eighteen
(18) months immediately preceding approval of the TIF Plan by the
municipality pursuant to M.S., Section 469.775, Subd. 3. The County Auditor
shall increase the original net tax capacity of the District by the net tax
capacity of improvements for which a building permit was issued.
The City has reviewed the area to be included in the District and found that
some building permits) have been issued in the past 18 months, but none that
should increase the original tax capacity.
City of Hutchinson
Tax Increment Financing District No. 4-24 6
SOURCES OF REVENUE/BONDS TO BE ISSUED
The total estimated tax increment revenues for the District are shown in the
table below:
Tax Increment $ 4,474,569
Interest 223,729
DTAL $ 4,698,298
The costs outlined in the Uses of Funds will be financed primarily through the
annual collection of tax increments. The City reserves the right to issue bonds
(as defined in the TIF Act) or incur other indebtedness as a result of the TIF
Plan. The City may issue bonds secured in whole or in part with tax
increments from the District in a maximum principal amount of $4,698,298.
Such bonds may be in the form of pay-as-you-go notes, revenue bonds or
notes, general obligation bonds, or interfund loans. This estimate of total
bonded indebtedness is a cumulative statement of authority under this TIF
Plan as of the date of approval.
As presently proposed, the projects within the District will be financed by
pay-as-you-go notes and interfund loans. Any refunding amounts will be
deemed a budgeted cost without a formal modification to this TIF Plan. This
provision does not obligate the City to incur debt. The City will issue bonds or
incur other debt only upon the determination that such action is in the best
interest of the City.
USES OF FUNDS
Currently under consideration for the District is a proposal to facilitate the
construction of a residential apartment building containing approximately 81-
units of housing and all necessary site and public improvements to
accommodate the facility and its parking needs. The City has determined that
it will be necessary to provide assistance to the project for certain District
costs, as described herein.
The City has studied the feasibility of the development or redevelopment of
property in and around the District. To facilitate the establishment and
development or redevelopment of the District, this TIF Plan authorizes the use
of tax increment financing to pay for the cost of certain eligible expenses. The
estimate of public costs and uses of funds associated with the District is
outlined in the following table.
City of Hutchinson
Tax Increment Financing District No. 4-24 7
Land/Building Acquisition
$ 300,000
Site Improvements/Preparation
400,000
Affordable Housing
930,000
Utilities
325,000
Other Qualifying Improvements
95,841
Administrative Costs (up to 10%)
447,457
PROJECT COSTS TOTAL
$ 2,498,298
Interest
2,200,000
'ROJECT AND INTEREST COSTS TOTAL
$ 4.698,298
The total project cost, including financing costs (interest) listed in the table
above does not exceed the total projected tax increments for the District as
shown in the Sources of Revenue section.
Estimated costs associated with the District are subject to change among
categories without a modification to the TIF Plan. The cost of all activities to
be considered for tax increment financing will not exceed, without formal
modification, the budget above pursuant to the applicable statutory
requirements. The City may expend funds for qualified housing activities
outside of the District boundaries.
ESTIMATED IMPACT ON OTHER TAXING JURISDICTIONS
The estimated impact on other taxing jurisdictions assumes that the
development contemplated by the TIF Plan would occur without the creation
of the District. However, the City has determined that such development
would not occur "but for" tax increment financing and that, therefore, the
fiscal impact on other taxing jurisdictions is $0. The estimated fiscal impact of
the District would be as follows if the "but for" test was not met:
City of Hutchinson
Tax Increment Financing District No. 4-24 8
McCleod County 45.545% 35.30% 156,984 $ 71,499
City of Hutchinson 56.527% 43.82% 156,984 88,739
ISD No. 423 (Hutchinson) 24.037% 18.63% 156,984 37,734
Other 2.903% 2.25% 156,984 4,557
129.013% 100.00% $202,529
The estimates listed above display the estimated captured tax capacity when
all construction is completed. The tax rate used for calculations is the Pay
2025 rate. The total net capacity for the entities listed above are based on
Pay 2025 figures. The District will be certified under the Pay 2026 rates, which
were unavailable at the time this TIF Plan was prepared.
Pursuant to M.S., Section 469.775 Subd. 2(b):
(1) Estimate of total tax increment. It is estimated that the total amount
of tax increment that will be generated over the life of the District is
$4,474,569;
(2) Probable impact of the District on city provided services and ability
to issue debt. An impact of the District on police protection is
expected. With any addition of new residents or businesses, police
calls for service may increase. An 81-unit apartment complex would
be expected to generate an average of 10-15 calls per year, inclusive
of medicals. Generally, new developments add an increase in traffic
and additional overall demands to the call load. However, the City
does not expect that the proposed development, in and of itself, will
necessitate new capital investment in vehicles or facilities.
The probable impact of the District on fire protection is not expected
to be significant. Typically, new buildings generate few fire service
calls, if any, and are of superior construction. The City does not
expect that the proposed development, in and of itself, will
necessitate new capital investment in vehicles or facilities.
City of Hutchinson
Tax Increment Financing District No. 4-24 9
The impact of the District on public infrastructure is expected to be
minimal. The development will include necessary parking and is not
expected to significantly impact traffic movements in the area. The
current infrastructure for sanitary sewer and water will be able to
handle the additional volume generated from the proposed
development. However, an existing sewer line currently bisects the
development site and will be rerouted along the perimeter of the
property. The City's sewer fund will pay approximately $173,555 for
this expense. The site will also need a stormwater retention pond to
address the surrounding neighborhood at an estimated cost of
$76,734 to the City's stormwater fund. Additionally, a short segment
of Glen Street will be removed, repaved and curb and gutter added
with an estimated cost of $114,557 funded by the City's community
improvement fund. Based on the development plans, there are no
additional costs associated with street maintenance, sweeping,
plowing, lighting and sidewalks. The development in the District is
expected to contribute an estimated $162,000 in sanitary sewer
(SAC) and water (WAC) connection fees.
The probable impact of the issuance of any general obligation tax
increment bonds payable from tax increment revenues from the
District on the City's ability to issue debt for general fund purposes is
expected to be minimal. It is not anticipated that there will be any
general obligation debt issued in relation to this project, therefore
there will be no impact on the City's ability to issue future debt or on
the City's debt limit.
(3) Estimated amount of tax increment attributable to school district
levies. It is estimated that the amount of tax increments over the life
of the District that would be attributable to school district levies,
assuming the school district's share of the total local tax rate for all
taxing jurisdictions remained the same, is $833,681;
(4) Estimated amount of tax increment attributable to county levies. It is
estimated that the amount of tax increments over the life of the
District that would be attributable to county levies, assuming the
county's share of the total local tax rate for all taxing jurisdictions
remained the same, is $1,579,658;
City of Hutchinson
Tax Increment Financing District No. 4-24 10
(5) Additional information requested by the county or school district. The
City is not aware of any standard questions in a county or school
district written policy regarding tax increment districts and impact on
county or school district services. The county or school district must
request additional information pursuant to M.S., Section 469.775 Subd.
2(b) within 15 days after receipt of the tax increment financing plan.
To date, no requests for additional information from the county or
school district regarding the proposed development for the District
have been received.
SUPPORTING DOCUMENTATION
Pursuant to M.S., Section 469.775, Subd. 7 (a), clause 7this TIF Plan must
contain identification and description of studies and analyses used to make
the determination set forth in M.S., Section 469.775, Subd. 3, clause (b)(2) and
the findings are required in the resolution approving the District.
In making said determination, reliance has been placed upon (1) written
representation made by the Developer to such effects, (2) review of the
Developer's proforma; and (3) City staff awareness of the feasibility of
developing the project site within the District, which is further outlined in the
City Council resolution approving the establishment of the District and
Appendix C.
DISTRICT ADMINISTRATION
Administration of the District will be handled by the City Administrator.
City of Hutchinson
Tax Increment Financing District No. 4-24 11
Appendix A: Map of Development District No. 4 and the TIF
District
City of Hutchinson
Tax Increment Financing District No. 4-24
Tax Increment
Financing District
No. 4-24
0"I
Ell
111111111
Mir
Tax Increment Financing District No 4-24
Development District No. 4
City of Hutchinson
McLeod County, Minnesota
Legend
Development Districts
= TIF 4-24
r--j DEVELOPMENT DISTRICT NO. 4
Appendix B: Estimated Cash Flow for the District
City of Hutchinson
Tax Increment Financing District No. 4-24
The Landing Apartments
City of Hutchinson, MN
81 Market Rate Apartment Units
�%'EHLERS
DistdctType:
Housing
Tax Rates
District Name/Number:
TIP 4-24
County District #:
TBD
Exempt Class Rate (Exempt)
0.00%
First Year Construction or Inflation on Value
2025
Commercial Industrial Preferred Class Rate (C/I Pref)
Existing District - Specify No. Years Remaining
First $150,000
1.50%
Inflation Rate - Every Year:
1.00%
Over $150,000
2.00%
Interest Rate:
6.00%
Commercial Industrial Class Rate (C/1)
2.00%
Present Value Date:
1-Aug-26
Rental Housing Class Rate (Rental)
1.25%
First Period Ending
1-Feb-27
Affordable Rental Housing Class Rate (A6. Rental)
Tax Year District was Certified:
Pay2026
First $100,000
0.25%
Cashflow Assumes First Tax Increment For Development:
2027
Over $100,000
0.25%
Years of Tax Increment
26
Non -Homestead Residential (Non-H Res. 1 Unit)
Assumes Last Year of Tax Increment
2052
First $500,000
1.00%
Fiscal Disparities Election [Outside (A), Inside (B), or NA]
Over $500,000
1.25%
Incremental or Total Fiscal Disparities
Homestead Residential Class Rate (Hmstd. Res.)
Fiscal Disparities Contribution Ratio
First $500,000
1.00%
Fiscal Disparities Metro -Wide Tax Rate
Over $500,000
1.25%
MaximuMFrozen Local Tax Rate:
129.013%
Pay 2025
Agricultural Non -Homestead
1.00%
Current Local Tax Rate: (Use lesser of Current or Max.)
129.013%
Pay 2025
State-wide Tax Rate (Comm./Ind. only used for total taxes)
28.8570%
Pay 2025
Market Value Tax Rate (Used for total taxes)
0.15566 %
Pay 2025
BASE
VALUE INFORMATION
Building
Total
Percentage
Tax Year
Property
Current
Class
After
Land
Market
Market
Of Value Used Original
Original
Tax
Original
After
Conversion
lap ID
PID
Owner Address
Market Value
Value
Value
for District Market Value
Market Value
Class
Tax Capacity
Conversion
Ong. Tax Cap.
Area/ Phas
1
23-056-2880
126 Franklin St NW
130,700
0
130,700
100% 130,700
Pay 2026
Exempt
-
Rental
1,634
1
2
23-056-2930
145 Glen St N
26, 100
0
26, 100
100% 26,100
Pay 2026
Exempt
-
Rental
326
1
3
23-056-2920
135 Glen St N
26,100
0
26,100
100% 26,100
Pay 2026
Exempt
-
Rental
326
1
4
23-056-2910
125 Glen St N
26,100
0
26,100
100% 26,100
Pay 2026
Exempt
-
Rental
326
1
5
23-056-2900
1451at Ave NW
26,100
0
26,100
100%F 26,100
Pay 2026
Exempt
-
Rental
326
1
6
23-056-2890
1351at Ave NW
26,100
0
26,100
100% 26,100
Pay 2026
Exempt
-
Rental
326
1
261,200
0
261,200
0
3,265
Note:
1. Base values are preliminary for pay 2026 based on review of County website on 7.16.2025.
2. Located in SD #0423.
The Landing Apartments
City of Hutchinson, MN
81 Market Rate Apartment Units
g�EHLERS
PROJECT•
Est mate
Taxable
Total Taxable
Property
Percentage
Percentage
Percentage
Percentage
Firs[Year
Market Value
Market Value Total
Market
Tax
Project
Project Tax Completed
Completed
Completed
Completed
Full Taxes
Area/Phase New Use Per Sq. Ft./Unit
Per Sq. Ft./Unit Sq. Ft./Units
Value
Class
Tax Capacity
Capacity/Unit 2025
2026
2027
2028
Payable
Apartments 125,895
125,895 81
10,197,500
Rental
127,469
1.574 25%
75%
100%
100%
2029
TOTAL
10,197,500
127,469
Note:
1. Market values are based upon preliminary estimates furnished by the County Assessors office to the developer May 27, 2025.
o a
Tax
isca
Disparities
oca
Tax
TAX CALCULATIONS
oca Ma
Property Disparities
a e-wi a
Property
a e
Value
Total
Taxes Per
New Use Ca aci
Tax Capacity
Capacity
a acit
Taxes Taxes
Taxes
Taxes
Taxes
Sq. FL/Unit
A artments 127,469
0
127,469
1 164,451 0
0
15,873
180,324
2,226.22
P.
n P.'
1. Taxes and tax increment will vary significantly from year to year depending upon values, rates, state law, fiscal Disparities and other factors
which cannot be predicted.
WHAT IS EXCLUDED FROM TIF?
Total Property Taxes 180,32�
less: State-wide Taxes 0
less: Market Value Taxes (15,87-
less: Base Value Taxes 4,212
Annual Gross TIF 160,23E
g%'EHLERS
PUBLIC FINANCE ADVISORS
The Landing Apartments
City of Hutchinson, MN
81 Market Rate Apartment Units
% of Tax Tax Tax Tax Gross Tax i Gross Tax Auditor Retention i Net Tax Present i ENDING Tax Payment
100%
31,867
(3,265)
28,602
129.013%
36,900
18,450
(66)
20%
(3,677)
14,707
13,863
0.5
2021
0810111
18,450
(66)
20%
(3,677)
14,707
27,322
1
2027
02/01/28
100%
95,602
(3,265)
92,337
129.013%
119,126
59,563
(214)
20%
(11,870)
47,479
69,506
1.5
2028
08/01/28
59,563
(214)
20%
(11,:70)
47,479
110,462
2
2028
02/01/29
100%
127,469
(3,265)
124,204
129.013%
160,238
80,119
(288)
20%
(15,966)
63,865
163,948
2.5
2029
OB/01/29
80,119
(288)
20%
(15,966)
63,865
215:876
3
2029
02/01/30
100%
128,743
(3,265)
125,478
129.013%
161,883
80,941
(291)
20%
(16,130)
64,520
266'809
3.5
2030
08/01/30
80,941
(291)
20%
(16,130)
64,520
316,258
4
2030
02/01/31
100%
130,031
(3,265)
126,766
129.013%
163,544
81,772
(294)
20%
(16,296)
65,182
364,760
4.5
2031
08/01/31
81,772
(294)
20%
(16,296)
65,182
411,849
5
2031
02/01/32
100%
131,331
(3,265)
128,066
129.013%
165,221
82,611
(297)
10%
(8,231)
74,082
463,809
5.5
2032
08/01/32
82,611
(297)
10%
(8,231)
74,082
514:255
6
2032
02/01/33
100%
132,644
(3,265)
129,379
129.013%
166,916
83,458
(300)
10%
(8,316)
74,842
563,734
6.5
2033
08/01/33
83,458
(300)
10%
(8,316)
74,842
611,772
7
2033
02/01/34
100%
133,971
(3,265)
130,706
129.013%
168,627
84,314
(304)
10%
(8,401)
75,609
658,889
7.5
2034
08/01/34
84,314
(304)
10%
(8,401)
75,609
704,634
8
2034
02/01/35
100%
135,311
(3,265)
132,046
129.013%
170,355
85,178
(307)
10%
(8,487)
76,384
749,502
8.5
2035
OB/01/35
85,178
(317)
10%
(8,487)
76,384
793:062
9
2035
02/01/36
100%
136,664
(3,265)
133,399
129.013%
172,101
86,051
(310)
10%
(8,574)
77,167
835,788
9.5
2036
08/01/36
86,051
(310)
10%
(8,574)
77,167
877,269
10
2036
02/01/37
100%
138,030
(3,265)
134,765
129.013%
173,864
86,932
(313)
10%
(8,662)
77,957
917,954
10.5
2037
08/01/37
86,932
(313)
10%
(8,662)
77,957
957,454
11
2037
02/01/38
100%
139,411
(3,265)
136,146
129.013%
175,645
87,822
(316)
10%
(8,751)
78,756
996,197
11.5
2038
08/01/38
87,822
(316)
10%
(8,751)
78,756
1,033,811
12
2038
02/01/39
100%
140,805
(3,265)
137,540
129.013%
177,444
88,722
(319)
10%
(8,840)
79,562
1,070,704
12.5
2039
08/01/39
88,722
(319)
10%
(8,840)
79,562
1,106,522
13
2039
02/01/40
100%
142,213
(3,265)
138,948
129.013%
179,260
89,630
(323)
10%
(8,931)
80,377
1, 141,653
13.5
2040
O1101140
89,630
(323)
10%
(8,931)
80,377
1,175,760
14
2040
02/01/41
100%
143,635
(3,265)
140,370
129.013%
181,095
90,547
(326)
10%
(9,022)
81,199
1,209,213
14.5
2041
08/01/41
90,547
(326)
10%
(9,022)
81,199
1,241,692
15
2041
02/01/42
100%
145,071
(3,265)
141,806
129.013%
182,948
91,474
(329)
10%
(9, 114)
82,030
1,273,547
15.5
2042
08/01/42
91,474
(329)
10%
(9,114)
82,030
1,304,475
16
2042
02/01/43
100%
146,522
(3,265)
143,257
129.013%
184,820
92,410
(333)
10%
(9,208)
82,869
1,334,809
16.5
2043
08/01/43
92,410
(333)
10%
(9,208)
82,869
1,364,259
17
2043
02/01/44
100%
147,987
(3,265)
144,722
129.013%
186,710
93,355
(336)
10%
(9,302)
83,717
1,393,144
17.5
2044
08/01/44
93,355
(336)
10%
(9:302)
83,717
1,421,188
18
2044
02/01/45
100%
149,467
(3,265)
146,202
129.013%
188,619
94,310
(340)
10%
(9,397)
84,573
1,448:694
18.5
2045
08/01/45
94,310
(340)
10%
(9,397)
84,573
1,475,398
19
2045
02/01/46
100%
150,962
(3,265)
147,697
129.013%
190,547
95,274
(343)
10%
(9,493)
85,438
1,501,589
19.5
2046
08/01/46
95,274
(343)
10%
(9,493)
85,438
1,527,018
20
2046
02/01/47
100%
152,471
(3,265)
149,206
129.013%
192,495
96,247
(346)
10%
(9,590)
86,311
1,551,958
20.5
2047
08/01/47
96,247
(346)
10%
(9,590)
86,311
1,576,172
21
2047
02/01/48
100%
153,996
(3,265)
150,731
129.013%
194,462
97,231
(350)
10%
(9,688)
87,193
1,599,921
21.5
2048
08/01/48
97,231
(350)
10%
(9,688)
87, 193
1,622,978
22
2048
02/01/49
100%
155,536
(3,265)
152,271
129.013%
196,449
98,224
(354)
10%
(9,787)
88,084
1,645,593
22.5
2049
08/01/49
98,224
(354)
10%
(9,787)
88,084
1,667,548
23
2049
02/01/50
100%
157,091
(3,265)
153,826
129.013%
198,455
99,228
(357)
10%
(9,887)
88,984
1,689,0:2
23.5
2050
08/01/50
99,228
(357)
10%
(9,887)
88,984
1,709,989
24
2050
02/01/51
100%
158,662
(3,265)
155,397
129.013%
200,482
100,241
(361)
10%
(9,988)
89,892
1,730,494
24.5
2051
08/01/51
100,241
(361)
10%
(9,988)
89,892
1,750,402
25
2051
02/01/5,
100%
160,249
(3,265)
156,984
129.013%
202,529
101,264
(365)
10%
(10,090)
90,810
1,769,927
25.5
2052
OB101152
101,264
365
10%
10,090
90,810
80
1,788,884
26
2052
02/01/53
Appendix C: Findings Including But/For Qualifications
The reasons and facts supporting the findings for the adoption of the Tax
Increment Financing Plan for Tax Increment Financing District No. 4-24, as
required pursuant to Minnesota Statutes, (M.S.) Section 469.775, Subdivision 3
are as follows:
7. Finding that Tax Increment Financing District No. 4-24 is a housing
district as defined in M.S., Section 469.774, Subd. 77.
Tax Increment Financing District No. 4-24 consists of six (6) parcels.
The development will consist of the construction of approximately 81-
units of new rental housing in the City, all or a portion of which will
receive tax increment assistance and will meet income restrictions
described in M.S. Section 469.7767. At least 20% of the units receiving
assistance will be occupied by individuals and families whose incomes
are at or below 50% of area median income, or at least 40% of the units
receiving assistance will be occupied by individuals and families whose
incomes are at or below 60% of area median income.
2. Finding that the proposed development, in the opinion of the City
Council, would not reasonably be expected to occur solely through
private investment within the reasonably foreseeable future.
This finding is supported by the fact that the development proposed in
the TIF Plan is a housing district that meets the City's objectives for
development and redevelopment. The cost of land acquisition, site and
public improvements and utilities makes this housing development
infeasible without City assistance. The developer has represented that
they could not proceed with the development without tax increment or
other public funding assistance. The developer has provided the City its
estimated Development Proforma outlining project sources and uses as
well as projected rent, vacancy and financing assumptions. City staff
and the City's advisors reviewed the information and have determined
the redevelopment is not feasible without the proposed assistance due
to the anticipated rental income from the housing units providing
insufficient cash flow to pay operating expenses, service the debt and
provide a sufficient rate of return. This leaves a gap in the funding for
the project and makes this housing development feasible only through
assistance, in part, from tax increment financing. Based on the review,
the City does not expect that a development of this type would occur in
the in the reasonably foreseeable future but for the use of tax increment
assistance.
City of Hutchinson
Tax Increment Financing District No. 4-24
3. Finding that the TIF Plan for Tax Increment Financing District No. 4-24
conforms to the general plan for the development or redevelopment of
the municipality as a whole.
The City Council reviewed the TIF Plan and found that the TIF Plan
conforms to the general development plan of the City.
4. Finding that the TIF Plan for Tax Increment Financing District No. 4-24
will afford maximum opportunity, consistent with the sound needs of
the City as a whole, for the development or redevelopment of
Development District No. 4 by private enterprise.
The Development proposed to occur within the TIF District will
afford maximum opportunity for the development of the applicable
parcels consistent with the needs of the City. Through the
implementation of the TIF Plan, the City will provide an impetus for
residential development, which is desirable or necessary for increased
population and an increased need for life -cycle housing within the City.
The TIF Plan also helps the EDA or the City meet their goal of providing
more affordable housing options in the City.
City of Hutchinson
Tax Increment Financing District No. 4-24
Adoption Date: March 18, 2016
Modification #1 Public Hearing: December 8, 2020
Modification #2 Public Hearing: September 9, 2025
City of Hutchinson
McLeod County, Minnesota
MODIFICATION to the
Tax Increment Financing (TIF) Plan
Tax Increment Financing District No. 4-16
(a redevelopment district)
Located in Development District No. 4
EHLERS
PUBLIC FINANCE ADVISORS
Prepared by:
Ehlers
3001 Broadway Street, Suite 320
Minneapolis, Minnesota 55413
BUILDING COMMUNITIES. IT'S WHAT WE DO.
Modification to the Tax Increment Financing Plan for Tax Increment
Financing District No. 4-16
FOREWORD
STATEMENT OF OBJECTIVES
DESCRIPTION OF PROPERTY IN THE DISTRICT
Appendix A: December 8, 2020 Modified TIF Plan
Modification to the Tax Increment Financing Plan for Tax
Increment Financing District No. 4-16
FOREWORD
The City of Hutchinson (the "City"), staff and consultants have prepared the
following information to expedite the Modification of Tax Increment Financing
District No. 4-16 (the "District"), a redevelopment tax increment financing district,
located in Development District No. 4.
STATEMENT OF OBJECTIVES
As modified September 9, 2025
The TIF Plan is being modified to remove one (1) parcel from the District which is
currently vacant. The TIF Plan's authorized budget and objectives will remain
unchanged.
DESCRIPTION OF PROPERTY IN THE DISTRICT
As modified September 9, 2025
The District is being modified to remove the following parcel from the District:
Parcel 23-056-2880 was certified with an original tax capacity of $8,372 and it is
currently 0. The property was owned by the City at the time of certification of
the District, but it did not become tax exempt until after the certification. Since
the current net tax capacity of that parcel is now lower than the original net tax
capacity when the District was created, the City will hold a public hearing to
remove the parcel. Due to the small tax capacity reduction from the original
certification and the parcels current status, no additional fiscal impacts are
anticipated for the City or the other taxing jurisdictions as a result of removing
the parcel.
The following parcel will remain in the District:
City of Hutchinson
Modification to Tax Increment Financing District No. 4-16
Appendix A: December 8, 2020 Modified TIF Plan
City of Hutchinson
Modification to Tax Increment Financing District No. 4-16
ECONOMIC DEVELOPMENT & REDEVELOPMENT
Irg
MODIFICATION TO THE DEVELOPMENT
PROGRAM
Development District No. 4
-AND -
TAX INCREMENT FINANCING PLAN
Modification of Tax Increment Financing District No. 4-16
(a redevelopment district)
City of Hutchinson, McLeod County, Minnesota
Adopted: March 18, 2016
Modification #1 Public Hearing: December 8, 2020
LE RS BUILDING COMMUNITIES. IT'S WHAT WE DO.
g'Z4EH® info@ehlers-inc.com 1 (900) 552-1171 ® www.ehlers-inc.com
I♦ LEAIJERS IN PUBLIC FINANCE
Table of Contents
(for reference purposes only)
Section 1 - Modification to the Development Program
for Development District No. 4.................................................... 1-1
Foreword.................................................................... 1-1
Section 2 - Tax Increment Financing Plan
for Tax Increment Financing District No. 4-16........................................
2-1
Subsection 2-1.
Foreword......................................................
2-1
Subsection 2-2.
Statutory Authority ...............................................
2-1
Subsection 2-3.
Statement of Objectives ..........................................
2-1
Subsection 2-4.
Development Program Overview ...................................
2-2
Subsection 2-5.
Description of Property in the District and Property To Be Acquired ........
2-2
Subsection 2-6.
Classification of the District ........................................
2-2
Subsection 2-7.
Duration and First Year of Tax Increment of the District ..................
2-4
Subsection 2-8.
Original Tax Capacity, Tax Rate and Estimated Captured Net
Tax Capacity
Value/Increment
and Notification of Prior Planned Improvements .......................
2-4
Subsection 2-9.
Sources of Revenue/Bonds to be Issued .............................
2-6
Subsection 2-10.
Uses of Funds ..................................................
2-7
Subsection 2-11.
Business Subsidies ..............................................
2-9
Subsection 2-12.
County Road Costs .............................................
2-10
Subsection 2-13.
Estimated Impact on Other Taxing Jurisdictions .......................
2-10
Subsection 2-14.
Supporting Documentation .......................................
2-13
Subsection 2-15.
Definition of Tax Increment Revenues ..............................
2-13
Subsection 2-16.
Modifications to the District .......................................
2-14
Subsection 2-17.
Administrative Expenses .........................................
2-14
Subsection 2-18.
Limitation of Increment ..........................................
2-15
Subsection 2-19.
Use of Tax Increment ...........................................
2-16
Subsection 2-20.
Excess Increments .............................................
2-16
Subsection 2-21.
Requirements for Agreements with the Developer .....................
2-16
Subsection 2-22.
Assessment Agreements ........................................
2-17
Subsection 2-23.
Administration of the District ......................................
2-17
Subsection 2-24.
Annual Disclosure Requirements ..................................
2-17
Subsection 2-25.
Reasonable Expectations ........................................
2-17
Subsection 2-26.
Other Limitations on the Use of Tax Increment ........................
2-18
Subsection 2-27.
Summary .....................................................
2-18
Appendix A
Project Description............................................................. A-1
Appendix B
Map of Development District No. 4 and the District .................................... B-1
Appendix C
Description of Property to be Included in the District ................................... C-1
Appendix D
Estimated Cash Flow for the District . .............................................. D-1
Appendix E
Minnesota Business Assistance Form .............................................. E-1
Appendix F
Redevelopment Qualifications for the District ............................................ F-1
Appendix G
Findings Including But/For Qualifications ............................................ G-1
Section 1 - Modification to the Development Program
for Development District No. 4
Foreword
The following text represents a Modification to the Development Program for Development District No. 4. This
modification represents a continuation of the goals and objectives set forth in the Development Program for
Development District No. 4. Generally, the substantive changes include the establishment of Tax Increment Financing
District No. 4-16.
For further information, please review the Development Program for Development District No. 4, adopted May 1980
and modified on April 24, 1990; December 30, 1991; May 13, 1997; June 8, 2003; June 29, 2004; August 23, 2005;
and June 12, 2007. It is available from the City Administrator or Economic Development Director at the City of
Hutchinson. Other relevant information is contained in the Tax Increment Financing Plans for the Tax Increment
Financing Districts located within Development District No. 4.
City of Hutchinson Modification to the Development Program for Development District No. 4 1-1
Section 2 - Tax Increment Financing Plan
for Tax Increment Financing District No. 4-16
Subsection 2-1. Foreword
The City of Hutchinson (the "City"), staff and consultants have prepared the following information to expedite the
establishment of Tax Increment Financing District No. 4-16 (the "District"), a redevelopment tax increment financing
district, located in Development District No. 4.
(As Modified December 8, 2020)
The City of Hutchinson (the "City"), staff and consultants have prepared the following information to
expedite the expansion of Tax Increment Financing District No. 4-16 (the "District"), a redevelopment tax
increment financing district, located in Development District No. 4.
Subsection 2-2. Statutory Authority
Within the City, there exist areas where public involvement is necessary to cause development or redevelopment to
occur. To this end, the City has certain statutory powers pursuant to Minnesota Statutes CUS.'), Sections 469.124
to 469.133, inclusive, as amended, and M.S., Sections 469.174 to 469.1794, inclusive, as amended (the "Tax
Increment Financing Act" or "TIF Act"), to assist in financing public costs related to this project.
This section contains the Tax Increment Financing Plan (the "TIF Plan") for the District. Other relevant information
is contained in the Modification to the Development Program for Development District No. 4.
Subsection 2-3. Statement of Objectives
The District currently consists of one parcel of land and adjacent and internal rights -of -way. The District is being
created to enable the Hutchinson Economic Development Authority (the "EDA") and City to acquire property and
prepare the site for future development in the City. Please see Appendix A for further District information. The City
has not entered into an agreement or designated a developer at the time of preparation of this TIF Plan. This TIF Plan
is expected to achieve many of the objectives outlined in the Development Program for Development District No.
4.
The activities contemplated in the Modification to the Development Program and the TIF Plan do not preclude the
undertaking of other qualified development or redevelopment activities. These activities are anticipated to occur over
the life of Development District No. 4 and the District.
(As Modified December 8, 2020)
The District currently consists of two parcels of land and adjacent and internal rights -of -way. The District is being
created to enable the Hutchinson Economic Development Authority (the "EDA") and City to acquire property and
prepare the site for future development in the City. Please see Appendix A for further District information. The City
has not entered into an agreement or designated a developer at the time of the modification of this TIF Plan. This
TIF Plan is expected to achieve many of the objectives outlined in the Development Program for Development
District No. 4.
The activities contemplated in the Modification to the Development Program and the TIF Plan do not preclude the
undertaking of other qualified development or redevelopment activities. These activities are anticipated to occur over
the life of Development District No. 4 and the District.
City of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-16 2-1
Subsection 2-4. Development Program Overview
1. Property to be Acquired - Selected property located within the District may be acquired by the City
and is further described in this TIF Plan.
2. Relocation - Relocation services, to the extent required by law, are available pursuant to M.S.
Chapter 117 and other relevant state and federal laws.
3. Upon approval of a developer's plan relating to the project and completion of the necessary legal
requirements, the City may sell to a developer selected properties that it may acquire within the
District or may lease land or facilities to a developer.
4. The City may perform or provide for some or all necessary acquisition, construction, relocation,
demolition, and required utilities and public street work within the District.
Subsection 2-5. Description of Property in the District and Property To Be Acquired
The District encompasses all property and adjacent rights -of -way and abutting roadways identified by the parcels
listed in Appendix C of this TIF Plan. Please also see the map in Appendix B for further information on the location
of the District.
The City may acquire any parcel within the District including interior and adjacent street rights of way. Any
properties identified for acquisition will be acquired by the City only in order to accomplish one or more of the
following: storm sewer improvements; provide land for needed public streets, utilities and facilities; carry out land
acquisition, site improvements, clearance and/or development to accomplish the uses and objectives set forth in this
plan. The City may acquire property by gift, dedication, condemnation or direct purchase from willing sellers in
order to achieve the objectives of this TIF Plan. Such acquisitions will be undertaken only when there is assurance
of funding to finance the acquisition and related costs.
Subsection 2-6. Classification of the District
The City, in determining the need to create a tax increment financing district in accordance with M.S., Sections
469.174 to 469.1794, as amended, inclusive, finds that the District, to be established, is a redevelopment district
pursuant to M.S., Section 469.174, Subd. I0(a)(1) as defined below:
(a) "Redevelopment district" means a type of tax increment financing district consisting of a project, or
portions of a project, within which the authority finds by resolution that one or more of the following
conditions, reasonably distributed throughout the district, exists:
(1) parcels consisting of 70 percent of the area in the district are occupied by buildings, streets, utilities,
paved or gravel parking lots or other similar structures and more than 50 percent of the buildings,
not including outbuildings, are structurally substandard to a degree requiring substantial renovation
or clearance;
(2) The property consists of vacant, unused, underused, inappropriately used, or infrequently used rail
yards, rail storage facilities or excessive or vacated railroad rights -of -way;
(3) tank facilities, or property whose immediately previous use was for tank facilities, as defined in
Section 11 SC, Subd. 15, if the tank facility:
(i) have or had a capacity of more than one million gallons;
City of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-16 2-2
(ii) are located adjacent to rail facilities; or
(iii) have been removed, or are unused, underused, inappropriately used or infrequently used; or
(4) a qualifying disaster area, as defined in Subd. IOb.
(b) For purposes of this subdivision, "structurally substandard" shall mean containing defects in structural
elements or a combination of deficiencies in essential utilities and facilities, light and ventilation, fire
protection including adequate egress, layout and condition of interior partitions, or similar factors,
which defects or deficiencies are of sufficient total significance to justify substantial renovation or
clearance.
(c) A building is not structurally substandard if it is in compliance with the building code applicable to new
buildings or could be modified to satisfy the building code at a cost of less than 15 percent of the cost
of constructing a new structure of the same square footage and type on the site. The municipality may
find that a building is not disqualified as structurally substandard under the preceding sentence on the
basis of reasonably available evidence, such as the size, type, and age of the building, the average cost
ofplumbing, electrical, or structural repairs or other similar reliable evidence. The municipality may
not make such a determination without an interior inspection of the property, but need not have an
independent, expert appraisal prepared of the cost of repair and rehabilitation of the building. An
interior inspection of the property is not required, if the municipality finds that (1) the municipality or
authority is unable to gain access to the property after using its best efforts to obtain permission from
the party that owns or controls the property; and (2) the evidence otherwise supports a reasonable
conclusion that the building is structurally substandard.
(d) A parcel is deemed to be occupied by a structurally substandard building for purposes of the finding
under paragraph (a) or by the improvement described in paragraph (e) if all of the following conditions
are met:
(1) the parcel was occupied by a substandard building or met the requirements ofparagraph (e), as the
case may be, within three years of the filing of the request for certification of the parcel as part of
the district with the county auditor;
(2) the substandard building or the improvements described in paragraph (e) were demolished or
removed by the authority or the demolition or removal was financed by the authority or was done
by a developer under a development agreement with the authority;
(3) the authority found by resolution before the demolition or removal that the parcel was occupied by
a structurally substandard building or met the requirement of paragraph (e) and that after
demolition and clearance the authority intended to include the parcel within a district; and
(4) upon filing the request for certification of the tax capacity of the parcel as part of a district, the
authority notifies the county auditor that the original tax capacity of the parcel must be adjusted as
provided by § 469.177, subdivision ],paragraph 69.
(e) Forpurposes of this subdivision, a parcel is not occupied by buildings, streets, utilities, paved or gravel
parking lots or other similar structures unless 15 percent of the area of the parcel contains buildings,
streets, utilities, paved or gravel parking lots or other similar structures.
69 For districts consisting of two or more noncontiguous areas, each area must qualify as a redevelopment
district under paragraph (a) to be included in the district, and the entire area of the district must satisfy
paragraph (a).
City of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-16 2-3
hi meeting the statutory criteria the City relies on the following facts and findings:
• The District is a redevelopment district consisting of one parcel.
• An inventory shows that more than 15 percent of the parcel is occupied by buildings, streets, utilities, paved or
gravel parking lots or other similar structures.
• An inspection of the sole building located within the District finds that the building is structurally substandard
as defined in the TIF Act. (See Appendix F).
(As Modifed December 8, 2020)
hi meeting the statutory criteria the City relies on the following facts and findings for the expansion portion of the
District:
• The expanded District is a redevelopment district consisting of one additional parcel.
• An inventory shows that more than 15 percent of the parcel is occupied by buildings, streets, utilities, paved or
gravel parking lots or other similar structures.
• An inspection of the sole building located within the District finds that the building is structurally substandard
as defined in the TIF Act. (See Appendix F).
Pursuant to M.S., Section 469.176, Subd. 7, the District does not contain any parcel or part of a parcel that qualified
under the provisions ofM.S., Sections 273.111, 273.112, or 273.114 or Chapter 473H for taxes payable in any of the
five calendar years before the filing of the request for certification of the District.
Subsection 2-7. Duration and First Year of Tax Increment of the District
Pursuant to M.S., Section 469.175, Subd. 1, and Section 469.176, Subd. ],the duration and first year of tax increment
of the District must be indicated within the TIF Plan. Pursuant to M.S., Section 469.176, Subd. 1 b., the duration of
the District will be 25 years after receipt of the first increment by the City (a total of 26 years of tax increment). The
City elects to receive the first tax increment in 2019, which is no later than four years following the year of approval
of the District. Thus, it is estimated that the District, including any modifications of the TIF Plan for subsequent
phases or other changes, would terminate after 2044, or when the TIF Plan is satisfied. The City reserves the right
to decertify the District prior to the legally required date.
(As Modified December 8, 2020)
Pursuant to M.S., Section 469.175, Subd. 1, and Section 469.176, Subd. 1, the duration and first year of tax increment
of the District must be indicated within the TIF Plan. Pursuant to M.S., Section 469.176, Subd. 1 b., the duration of
the District will be 25 years after receipt of the first increment by the City (a total of 26 years of tax increment). The
City elects to receive the first tax increment in 2019, which is no later than four years following the year of approval
of the District. No increment has been received as of 2020. First increment is expected to be received in 2023.
Thus, it is estimated that the District, including any additional modifications of the TIF Plan for subsequent phases
or other changes, would terminate after 2048, or when the TIF Plan is satisfied. The City reserves the right to
decertify the District prior to the legally required date.
Subsection 2-8. Original Tax Capacity, Tax Rate and Estimated Captured Net Tax Capacity
Value/Increment and Notification of Prior Planned Improvements
Pursuant to M.S., Section 469.174, Subd. 7 and M.S., Section 469.177, Subd. 1, the Original Net Tax Capacity
(ONTC) as certified for the District will be based on the market values placed on the property by the assessor in 2015
for taxes payable 2016.
City of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-16 2-4
Pursuant to M.S., Section 469.177, Subds. 1 and 2, the County Auditor shall certify in each year (beginning in the
payment year 2019) the amount by which the original value has increased or decreased as a result of:
1. Change in tax exempt status of property;
2. Reduction or enlargement of the geographic boundaries of the district;
3. Change due to adjustments, negotiated or court -ordered abatements;
4. Change in the use of the property and classification;
5. Change in state law governing class rates; or
6. Change in previously issued building permits.
In any year in which the current Net Tax Capacity (NTC) value of the District declines below the ONTC, no value
will be captured and no tax increment will be payable to the City.
The original local tax rate for the District will be the local tax rate for taxes payable 2016, assuming the request for
certification is made before June 30, 2016. The ONTC and the Original Local Tax Rate for the District appear in the
table below.
Pursuant to M.S., Section 469.174 Subd. 4 and M.S., Section 469.177, Subd. 1, 2, and 4, the estimated Captured Net
Tax Capacity (CTC) of the District, within Development District No. 4, upon completion of the projects within the
District, will annually approximate tax increment revenues as shown in the table on the following page. The City
requests 100 percent of the available increase in tax capacity for repayment of its obligations and current
expenditures, beginning in the tax year payable 2019. The Project Tax Capacity (PTC) listed is an estimate of values
when the projects within the District are completed.
Project Estimated Tax Capacity upon Completion (PTC) $63,965
Original Estimated Net Tax Capacity (ONTO) $8,372
Estimated Captured Tax Capacity (CTC) $55,593
Original Local Tax Rate 155.990% Estimated
Pay 2016
Estimated Annual Tax Increment (CTC x Local Tax Rate) $86,720
Percent Retained by the City 100%
Tax capacity includes a 3% inflation factor for the duration of the District. The tax capacity included in this chart is
the estimated tax capacity of the District in year 25. The tax capacity of the District in year one is estimated to be
$30,550.
Pursuant to M.S., Section 469.177, Subd. 4, the City shall, after a due and diligent search, accompany its request for
certification to the County Auditor or its notice of the District enlargement pursuant to M.S., Section 469.175, Subd.
4, with a listing of all properties within the District or area of enlargement for which building permits have been
issued during the eighteen (18) months immediately preceding approval of the TIF Plan by the municipality pursuant
to M.S., Section 469.175, Subd. 3. The County Auditor shall increase the original net tax capacity of the District by
the net tax capacity of improvements for which a building permit was issued.
The City has reviewed the area to be included in the District and found no parcels for which building permits have
been issued during the 18 months immediately preceding approval of the TIF Plan by the City.
City of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-16 2-5
(As Modified December 8, 2020)
The original local tax rate for the expansion of the District will be the local tax rate for taxes payable 2021,
assuming the request for certification is made before June 30, 2021. The ONTC and the Original Local Tax Rate
for the District appear in the table below are for taxes payable in 2020 as that is the most recent rate available
at the time of the preparation of this modification.
Pursuant to M.S., Section 469.174 Subd. 4 and M.S., Section 469.177, Subd. 1, 2, and 4, the estimated Captured Net
Tax Capacity (CTC) of the District, within Development District No. 4, upon completion of the projects within the
District, will annually approximate tax increment revenues as shown in the table on the following page. The City
requests 100 percent of the available increase in tax capacity for repayment of its obligations and current
expenditures, beginning in the tax year payable 2023. The Proj ect Tax Capacity (PTC) listed is an estimate of values
when the projects within the District are completed.
Project Estimated Tax Capacity upon Completion (PTC) $63,965
Original Estimated Net Tax Capacity (ONTO) $8,372
Estimated Captured Tax Capacity (CTC) $55,593
Original Local Tax Rate 164.147% Pay 2020
Estimated Annual Tax Increment (CTC x Local Tax Rate) $91,254
Percent Retained by the City 100%
Tax capacity includes a 3% inflation factor for the duration of the District. The tax capacity included in this chart is the
estimated tax capacity of the District in year 25. The tax capacity of the District in year one is estimated to be $51750.
Pursuant to M.S., Section 469.177, Subd. 4, the City shall, after a due and diligent search, accompany its request for
certification to the County Auditor or its notice of the District enlargement pursuant to M.S., Section 469.175, Subd.
4, with a listing of all properties within the District or area of enlargement for which building permits have been
issued during the eighteen (18) months immediately preceding approval of the TIF Plan by the municipality pursuant
to M.S., Section 469.175, Subd. 3. The County Auditor shall increase the original net tax capacity of the District by
the net tax capacity of improvements for which a building permit was issued.
The City has reviewed the area to be included in the District and found no parcels for which building permits
have been issued during the 18 months immediately preceding approval of the TIF Plan by the City.
Subsection 2-9. Sources of Revenue/Bonds to be Issued
The costs outlined in the Uses of Funds will be financed primarily through the annual collection of tax increments.
The City reserves the right to incur bonds or other indebtedness as a result of the TIF Plan. As presently proposed,
the projects within the District will be financed by a and interfund loan, pay -as -you go or a combination of both.
Any refunding amounts will be deemed a budgeted cost without a formal TIF Plan Modification. This provision does
not obligate the City to incur debt. The City will issue bonds or incur other debt only upon the determination that such
action is in the best interest of the City.
City of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-16 2-6
The total estimated tax increment revenues for the District are shown in the table below:
SOURCES OF FUNDS TOTAL
Tax Increment $1,400,000
Land Sale Proceeds $1
Interest $139,999
TOTAL $1,540,000
The City may issue bonds (as defined in the TIF Act) secured in whole or in part with tax increments from the District
in a maximum principal amount of $984,326. Such bonds may be in the form of pay-as-you-go notes, revenue bonds
or notes, general obligation bonds, or interfund loans. This estimate of total bonded indebtedness is a cumulative
statement of authority under this TIF Plan as of the date of approval.
(As Modified December 8, 2020)
The total estimated tax increment revenues for the District are shown in the table below:
SOURCES OF FUNDS TOTAL
Tax Increment $4,525,000
Land Sale Proceeds $1
Interest $578,499
TOTAL $5,103,500
The City may issue bonds (as defined in the TIF Act) secured in whole or in part with tax increments from the District
in a maximum principal amount of $3,403,500. Such bonds may be in the form of pay-as-you-go notes, revenue bonds
or notes, general obligation bonds, or interfund loans. This estimate of total bonded indebtedness is a cumulative
statement of authority under this TIF Plan as of the date of approval.
Subsection 2-10. Uses of Funds
Currently under consideration for the District is a proposal to enable the EDA and City to acquire property and
prepare the site for future development. The City has determined that it will be necessary to provide assistance to the
project(s) for certain District costs, as described. The City has studied the feasibility of the development or
redevelopment of property in and around the District. To facilitate the establishment and development or
redevelopment of the District, this TIF Plan authorizes the use of tax increment financing to pay for the cost of certain
eligible expenses. The estimate of public costs and uses of funds associated with the District is outlined in the
following table.
City of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-16 2-7
USES OF TAX INCREMENT FUNDS TOTAL
Land/Building Acquisition $225,000
Site Improvements/Preparation $284,000
Other Qualifying Improvements $335,326
Administrative Costs (up to 10%) $140,000
PROJECT COST TOTAL $984,326
Interest 555 674
PROJECT AND INTEREST COSTS TOTAL $1,540,000
(As Modified December 8, 2020)
Currently under consideration for the District is a proposal to enable the EDA and City to acquire property and
prepare the site for future development. The City has determined that it will be necessary to provide assistance to the
project(s) for certain District costs, as described. The City has studied the feasibility of the development or
redevelopment of property in and around the District. To facilitate the establishment and development or
redevelopment of the District, this TIF Plan authorizes the use of tax increment financing to pay for the cost of certain
eligible expenses. The estimate of public costs and uses of funds associated with the District is outlined in the
following table.
USES OF TAX INCREMENT FUNDS TOTAL
Land/Building Acquisition $650,000
Site Improvements/Preparation $750,000
Other Qualifying Improvements $1,551,000
Administrative Costs (up to 10%) $452,500
PROJECT COST TOTAL $3,403,500
Interest $1,700,000
PROJECT AND INTEREST COSTS TOTAL $5,103,500
The total project cost, including financing costs (interest) listed in the table above does not exceed the total projected
tax increments for the District as shown in Subsection 2-9.
Estimated costs associated with the District are subject to change among categories without a modification to this
TIF Plan. The cost of all activities to be considered for tax increment financing will not exceed, without formal
modification, the budget above pursuant to the applicable statutory requirements. Pursuant to M. S., Section 469.1763,
Subd. 2, no more than 25 percent of the tax increment paid by property within the District will be spent on activities
related to development or redevelopment outside of the District but within the boundaries of Development District
No. 4, (including administrative costs, which are considered to be spent outside of the District) subject to the
limitations as described in this TIF Plan.
City of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-16 2-8
Subsection 2-11. Business Subsidies
Pursuant to M.S., Section 116J.993, Subd. 3, the following forms of financial assistance are not considered a business
subsidy:
(1) A business subsidy of less than $150,000;
(2) Assistance that is generally available to all businesses or to a general class of similar businesses, such as
a line of business, size, location, or similar general criteria;
(3) Public improvements to buildings or lands owned by the state or local government that serve a public
purpose and do not principally benefit a single business or defined group of businesses at the time the
improvements are made;
(4) Redevelopment property polluted by contaminants as defined in M.S., Section 116J.552, Subd. 3;
(5) Assistance provided for the sole purpose of renovating old or decaying building stock or bringing it up to
code and assistance provided for designated historic preservation districts, provided that the assistance is
equal to or less than 50% of the total cost;
(6) Assistance to provide job readiness and training services if the sole purpose of the assistance is to provide
those services;
(7) Assistance for housing;
(8) Assistance for pollution control or abatement, including assistance for a tax increment financing hazardous
substance subdistrict as defined under M.S., Section 469.174, Subd. 23;
(9) Assistance for energy conservation;
(10) Tax reductions resulting from conformity with federal tax law;
(11) Workers' compensation and unemployment compensation;
(12) Benefits derived from regulation;
(13) Indirect benefits derived from assistance to educational institutions;
(14) Funds from bonds allocated under chapter 474A, bonds issued to refund outstanding bonds, and bonds
issued for the benefit of an organization described in section 501 (c) (3) of the Internal Revenue Code of
1986, as amended through December 31, 1999;
(15) Assistance for a collaboration between a Minnesota higher education institution and a business;
(16) Assistance for a tax increment financing soils condition district as defined under M.S., Section 469.174,
Subd. 19;
(17) Redevelopment when the recipient's investment in the purchase of the site and in site preparation is 70
percent or more of the assessor's current year's estimated market value;
(18) General changes in tax increment financing law and other general tax law changes of a principally
technical nature;
(19) Federal assistance until the assistance has been repaid to, and reinvested by, the state or local government
agency;
(20) Funds from dock and wharf bonds issued by a seaway port authority;
(21) Business loans and loan guarantees of $150,000 or less;
(22) Federal loan funds provided through the United States Department of Commerce, Economic Development
Administration; and
(23) Property tax abatements granted underM.S., Section 469.1813 to property that is subject to valuation under
Minnesota Rules, chapter 8100.
The City will comply with M.S., Sections 116J.993 to 116J.995 to the extent the tax increment assistance under this
TIF Plan does not fall under any of the above exemptions.
City of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-16 2-9
Subsection 2-12. County Road Costs
Pursuant to M.S., Section 469.175, Subd. 1 a, the county board may require the City to pay for all or part of the cost
of county road improvements if the proposed development to be assisted by tax increment will, in the judgment of
the county, substantially increase the use of county roads requiring construction of road improvements or other road
costs and if the road improvements are not scheduled within the next five years under a capital improvement plan
or within five years under another county plan.
If the county elects to use increments to improve county roads, it must notify the City within forty-five days of receipt
of this TIF Plan. In the opinion of the City and consultants, the proposed development outlined in this TIF Plan will
have little or no impact upon county roads, therefore the TIF Plan was not forwarded to the county 45 days prior to
the public hearing. The City is aware that the county could claim that tax increment should be used for county roads,
even after the public hearing.
Subsection 2-13. Estimated Impact on Other Taxing Jurisdictions
The estimated impact on other taxing jurisdictions assumes that the redevelopment contemplated by the TIF Plan
would occur without the creation of the District. However, the City has determined that such development or
redevelopment would not occur "but for" tax increment financing and that, therefore, the fiscal impact on other taxing
jurisdictions is $0. The estimated fiscal impact of the District would be as follows if the "but for" test was not met:
IMPACT ON TAX BASE
Estimated
2015/Pay 2016
Estimated Captured
Total Net
Tax Capacity (CTC) Percent of CTC
Tax Capacity
Upon Completion
to Entity Total
McLeod County
35,498,296
55,593
0.1566%
City of Hutchinson
8,908,926
55,593
0.6240%
Hutchinson ISD No. 423
14,965,582
55,593
0.3715%
IMPACT ON TAX RATES
Estimated
Pay 2016
Percent
Potential
Extension Rates
of Total
CTC
Taxes
McLeod County
0.509340
34.86%
55,593
28,316
City of Hutchinson
0.744170
50.94%
55,593
41,371
Hutchinson ISD No. 423
0.173390
11.87%
55,593
9,639
Other
0.034050
2.33%
55,593
1,893
Total
1.460950
100.00%
81,219
The estimates listed above display the captured tax capacity when all construction is completed. The tax rate used
for calculations is the estimated Pay 2016 rate. The total net capacity for the entities listed above are based on actual
Pay 2015 figures. The District will be certified under the actual Pay 2016 rates and figures, which were unavailable
at the time this TIF Plan was prepared.
City of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-16 2-10
Pursuant to M.S. Section 469.175 Subd. 2(b):
(1) Estimate of total tax increment. It is estimated that the total amount of tax increment that will be generated
over the life of the District is $1,400,000;
(2) Probable impact of the District on city provided services and ability to issue debt. An impact of the District
on police protection is not expected. The City Police Department does track all calls for service including
property -type calls and crimes. With any addition of new residents or businesses, police calls for service will
be increased. New developments add an increase in traffic, and additional overall demands to the call load.
The City does not expect that the proposed development, in and of itself, will necessitate new capital
investment.
The probable impact of the District on fire protection is not expected to be significant. Typically new
buildings generate few calls, if any, and are of superior construction. The existing building, which will be
eliminated by the new development, is blighted and not maintained.
The impact of the District on public infrastructure is expected to be minimal. The development is not
expected to significantly impact any traffic movements in the area. The current infrastructure for sanitary
sewer, storm sewer and water will be able to handle the additional volume generated from the proposed
development. Based on the development plans, there are no additional costs associated with street
maintenance, sweeping, plowing, lighting and sidewalks. The development in the District is expected to
contribute to sanitary sewer (SAC) and water (WAC) connection fees, however the exact amount is unknown
at this time.
It is not anticipated that there will be any general obligation debt issued in relation to this project, therefore
there will be no impact on the City's ability to issue future debt or on the City's debt limit.
(3) Estimated amount of tax increment attributable to school district levies. It is estimated that the amount of
tax increments over the life of the District that would be attributable to school district levies, assuming the
school district's share of the total local tax rate for all taxing jurisdictions remained the same, is $166,180;
(4) Estimated amount of tax increment attributable to county levies. It is estimated that the amount of tax
increments over the life of the District that would be attributable to county levies, assuming the county's
share of the total local tax rate for all taxing jurisdictions remained the same, is $488,040;
(5) Additional information requested by the county or school district. The City is not aware of any standard
questions in a county or school district written policy regarding tax increment districts and impact on county
or school district services. The county or school district must request additional information pursuant to M.S.
Section 469.175 Subd. 2(b) within 15 days after receipt of the tax increment financing plan.
No requests for additional information from the county or school district regarding the proposed development
for the District have been received.
(As Modified December 8, 2020)
The estimated impact on other taxing jurisdictions assumes that the redevelopment contemplated by the TIF Plan
would occur without the creation of the District. However, the City has determined that such development or
redevelopment would not occur "but for" tax increment financing and that, therefore, the fiscal impact on other taxing
jurisdictions is $0. The estimated fiscal impact of the District would be as follows if the "but for" test was not met:
City of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-16 2-11
IMPACT ON TAX BASE
Estimated
2019/Pay 2020
Estimated Captured
Total Net
Tax Capacity (CTC) Percent of CTC
Tax Capacity
Upon Completion
to Entity Total
McLeod County
40,577,603
161,696
0.3985%
City of Hutchinson
11,220,809
161,696
1.4410%
Hutchinson ISD No. 423
18,536,711
161,696
0.8723%
IMPACT ON TAX RATES
Estimated
Pay 2020
Percent
Potential
Extension Rates
of Total
CTC
Taxes
McLeod County
0.598090
36.44%
161,696
96,709
City of Hutchinson
0.664730
40.50%
161,696
107,484
Hutchinson ISD No. 423
0.342530
20.87%
161,696
55,386
Other
0.036120
2.20%
161,696
5,840
Total
1.641470
100.00%
265,419
The estimates listed above display the captured tax capacity when all construction is completed for both the
original and the expansion project combined. The tax rate used for calculations is the final Pay 2020 rate.
The total net capacity for the entities listed above are based on actual Pay 2020 figures. The expansion of the
District will be certified under the actual Pay 2021 rates and figures, which were unavailable at the time this
TIF Plan modification was prepared.
Pursuant to M.S. Section 469.175 Subd. 2(b):
(1) Estimate of total tax increment. It is estimated that the total amount of tax increment that will be generated
over the life of the District is $5,103,500;
(2) Probable impact of the District on city provided services and ability to issue debt. An impact of the District
on police protection is not expected. The City Police Department does track all calls for service including
property -type calls and crimes. With any addition of new residents or businesses, police calls for service will
be increased. New developments add an increase in traffic, and additional overall demands to the call load.
The City does not expect that the proposed development, in and of itself, will necessitate new capital
investment.
The probable impact of the District on fire protection is not expected to be significant. Typically new
buildings generate few calls, if any, and are of superior construction. The existing building, which will be
eliminated by the new development, is blighted and not maintained.
City of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-16 2-12
The impact of the District on public infrastructure is expected to be minimal. The development is not
expected to significantly impact any traffic movements in the area. The current infrastructure for sanitary
sewer, storm sewer and water will be able to handle the additional volume generated from the proposed
development. Based on the development plans, there are no additional costs associated with street
maintenance, sweeping, plowing, lighting and sidewalks. The development in the District is expected to
contribute $62,775 to sanitary sewer (SAC) and water (WAC) connection fees.
It is not anticipated that there will be any general obligation debt issued in relation to this project, therefore
there will be no impact on the City's ability to issue future debt or on the City's debt limit.
(3) Estimated amount of tax increment attributable to school district levies. It is estimated that the amount of
tax increments over the life of the District that would be attributable to school district levies, assuming the
school district's share of the total local tax rate for all taxing jurisdictions remained the same, is $166,180;
(4) Estimated amount of tax increment attributable to county levies. It is estimated that the amount of tax
increments over the life of the District that would be attributable to county levies, assuming the county's
share of the total local tax rate for all taxing jurisdictions remained the same, is $488,040;
(5) Additional information requested by the county or school district. The City is not aware of any standard
questions in a county or school district written policy regarding tax increment districts and impact on county
or school district services. The county or school district must request additional information pursuant to M. S.
Section 469.175 Subd. 2(b) within 15 days after receipt of the tax increment financing plan.
No requests for additional information from the county or school district regarding the proposed development
for the District have been received.
Subsection 2-14. Supporting Documentation
Pursuant to M.S. Section 469.175, Subd. 1 (a), clause 7 the TIF Plan must contain identification and description of
studies and analyses used to make the determination set forth in M.S. Section 469.175, Subd. 3, clause (b)(2) and the
findings are required in the resolution approving the District. Following is a list of reports and studies on file at the
City that support the City's findings:
Redevelopment Tax Increment Financing District Eligibility Study: "Old Medical Clinic".
Imagine Hutchinson Downtown Vision and Action Plan.
Levee Area Walkway Alternatives.
Subsection 2-15. Definition of Tax Increment Revenues
Pursuant to M.S., Section 469.174, Subd. 25, tax increment revenues derived from a tax increment financing district
include all of the following potential revenue sources:
1. Taxes paid by the captured net tax capacity, but excluding any excess taxes, as computed under M. S., Section
469.177;
2. The proceeds from the sale or lease of property, tangible or intangible, to the extent the property was
purchased by the authority with tax increments;
3. Principal and interest received on loans or other advances made by the authority with tax increments;
4. Interest or other investment earnings on or from tax increments;
5. Repayments or return of tax increments made to the Authority under agreements for districts for which the
request for certification was made after August 1, 1993; and
6. The market value homestead credit paid to the Authority under M.S., Section 273.1384.
City of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-16 2-13
Subsection 2-16. Modifications to the District
hi accordance with M.S., Section 469.175, Subd. 4, any:
1. Reduction or enlargement of the geographic area of the District, if the reduction does not meet the
requirements of M.S., Section 469.175, Subd. 4(e);
2. Increase in amount of bonded indebtedness to be incurred;
3. A determination to capitalize interest on debt if that determination was not a part of the original TIF Plan;
4. Increase in the portion of the captured net tax capacity to be retained by the City;
5. Increase in the estimate of the cost of the District, including administrative expenses, that will be paid or
financed with tax increment from the District; or
6. Designation of additional property to be acquired by the City,
shall be approved upon the notice and after the discussion, public hearing and findings required for approval of the
original TIF Plan.
Pursuant to M.S. Section 469.175 Subd. 469, the geographic area of the District may be reduced, but shall not be
enlarged after five years following the date of certification of the original net tax capacity by the county auditor. If
a redevelopment district is enlarged, the reasons and supporting facts for the determination that the addition to the
district meets the criteria of M.S., Section 469.174, Subd. 10, must be documented in writing and retained. The
requirements of this paragraph do not apply if (1) the only modification is elimination of parcel(s) from the District
and (2)(A) the current net tax capacity of the parcel(s) eliminated from the District equals or exceeds the net tax
capacity of those parcel(s) in the District's original net tax capacity or (B) the City agrees that, notwithstanding M.S.,
Section 469.177, Subd. 1, the original net tax capacity will be reduced by no more than the current net tax capacity
of the parcel(s) eliminated from the District.
The City must notify the County Auditor of any modification to the District. Modifications to the District in the form
of a budget modification or an expansion of the boundaries will be recorded in the TIF Plan.
Subsection 2-17. Administrative Expenses
In accordance withM.S., Section 469.174, Subd.14, administrative expenses means all expenditures ofthe City, other
than:
1. Amounts paid for the purchase of land;
2. Amounts paid to contractors or others providing materials and services, including architectural and
engineering services, directly connected with the physical development of the real property in the District;
3. Relocation benefits paid to or services provided for persons residing or businesses located in the District;
4. Amounts used to pay principal or interest on, fund a reserve for, or sell at a discount bonds issued pursuant
to M.S., Section 469.178; or
5. Amounts used to pay other financial obligations to the extent those obligations were used to finance costs
described in clauses (1) to (3).
For districts for which the request for certification were made before August 1, 1979, or after June 30, 1982, and
before August 1, 2001, administrative expenses also include amounts paid for services provided by bond counsel,
fiscal consultants, and planning or economic development consultants. Pursuant to M.S., Section 469.176, Subd. 3,
tax increment may be used to pay any authorized and documented administrative expenses for the District up to
but not to exceed 10 percent of the total estimated tax increment expenditures authorized by the TIF Plan or the total
tax increments, as defined by M.S., Section 469.174, Subd. 25, clause (1), from the District, whichever is less.
City of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-16 2-14
For districts for which certification was requested after July 31, 2001, no tax increment may be used to pay any
administrative expenses for District costs which exceed ten percent of total estimated tax increment expenditures
authorized by the TIF Plan or the total tax increments, as defined in M.S., Section 469.174, Subd. 25, clause (1), from
the District, whichever is less.
Pursuant to M. S., Section 469.176, Subd. 4h, tax increments maybe used to pay for the County's actual administrative
expenses incurred in connection with the District and are not subject to the percentage limits of M.S., Section
469.176, Subd. 3. The county may require payment of those expenses by February 15 of the year following the year
the expenses were incurred.
Pursuant to M.S., Section 469. 177, Subd. 11, the County Treasurer shall deduct an amount (currently .36 percent)
of any increment distributed to the City and the County Treasurer shall pay the amount deducted to the State
Commissioner of Management and Budget for deposit in the state general fund to be appropriated to the State Auditor
for the cost of financial reporting of tax increment financing information and the cost of examining and auditing
authorities' use of tax increment financing. This amount maybe adjusted annually by the Commissioner of Revenue.
Subsection 2-18. Limitation of Increment
The tax increment pledged to the payment of bonds and interest thereon may be discharged and the District may be
terminated if sufficient funds have been irrevocably deposited in the debt service fund or other escrow account held
in trust for all outstanding bonds to provide for the payment of the bonds at maturity or redemption date.
Pursuant to M.S., Section 469.176, Subd. 6:
if, after fouryears from the date of certification of the original net tax capacity of the tax increment
financing districtpursuant to M.S., Section 469.177, no demolition, rehabilitation or renovation of
property or other site preparation, including qualified improvement of a street adjacent to a parcel
but not installation of utility service including sewer or water systems, has been commenced on a
parcel located within a tax increment financing district by the authority or by the owner of the
parcel in accordance with the tax increment financing plan, no additional tax increment may be
taken from that parcel, and the original net tax capacity of that parcel shall be excluded from the
original net tax capacity of the tax increment financing district. If the authority or the owner of the
parcel subsequently commences demolition, rehabilitation or renovation or other site preparation
on that parcel including qualified improvement of a street adjacent to that parcel, in accordance
with the tax increment financing plan, the authority shall certify to the county auditor that the
activity has commenced and the county auditor shall certify the net tax capacity thereof as most
recently certified by the commissioner of revenue and add it to the original net tax capacity of the
tax increment financing district. The county auditor must enforce theprovisions of this subdivision.
The authority must submit to the county auditor evidence that the required activity has taken place
for each parcel in the district. The evidence for a parcel must be submitted by February I of the fifth
year following the year in which the parcel was certified as included in the district. For purposes
of this subdivision, qualified improvements of a street are limited to (1) construction or opening of
a new street, (2) relocation of a street, and (3) substantial reconstruction or rebuilding ofan existing
street.
The City or a property owner must improve parcels within the District by approximately February 2020 and report
such actions to the County Auditor.
City of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-16 2-15
Subsection 2-19. Use of Tax Increment
The City hereby determines that it will use 100 percent of the captured net tax capacity of taxable property located
in the District for the following purposes:
1. To pay the principal of and interest on bonds issued to finance a project;
2. To finance, or otherwise pay the capital and administration costs of Development District No. 4 pursuant
to M.S., Sections 469.124 to 469.133;
3. To pay for project costs as identified in the budget set forth in the TIF Plan;
4. To finance, or otherwise pay for other purposes as provided in M.S., Section 469.176, Subd. 4;
5. To pay principal and interest on any loans, advances or other payments made to or on behalf of the City or
for the benefit of Development District No. 4 by a developer;
6. To finance or otherwise pay premiums and other costs for insurance or other security guaranteeing the
payment when due of principal of and interest on bonds pursuant to the TIF Plan or pursuant to M.S., Chapter
462C. M.S., Sections 469.152 through 469.165, and/or M.S., Sections 469.178; and
7. To accumulate or maintain a reserve securing the payment when due of the principal and interest on the tax
increment bonds or bonds issued pursuant to M.S., Chapter 462C, M.S., Sections 469.152 through 469.165,
and/or M.S., Sections 469.178.
These revenues shall not be used to circumvent any levy limitations applicable to the City nor for other purposes
prohibited by M.S., Section 469.176, Subd. 4.
Tax increments generated in the District will be paid by McLeod County to the City for the Tax Increment Fund of
said District. The City will pay to the developer(s) annually an amount not to exceed an amount as specified in a
developer's agreement to reimburse the costs of land acquisition, public improvements, demolition and relocation,
site preparation, and administration. Remaining increment funds will be used for City administration (up to 10
percent) and for the costs of public improvement activities outside the District.
Subsection 2-20. Excess Increments
Excess increments, as defined in M.S., Section 469.176, Subd. 2, shall be used only to do one or more of the
following:
1. Prepay any outstanding bonds;
2. Discharge the pledge of tax increment for any outstanding bonds;
3. Pay into an escrow account dedicated to the payment of any outstanding bonds; or
4. Return the excess to the County Auditor for redistribution to the respective taxing jurisdictions in proportion
to their local tax rates.
The City must spend or return the excess increments under M.S., Section 469.176, Subd. 2, paragraph (c) within nine
months after the end of the year. In addition, the City may, subject to the limitations set forth herein, choose to
modify the TIF Plan in order to finance additional public costs in Development District No. 4 or the District.
Subsection 2-21. Requirements for Agreements with the Developer
The City will review any proposal for private development to determine its conformance with the Development
Program and with applicable municipal ordinances and codes. To facilitate this effort, the following documents may
be requested for review and approval: site plan, construction, mechanical, and electrical system drawings, landscaping
plan, grading and storm drainage plan, signage system plan, and any other drawings or narrative deemed necessary
by the City to demonstrate the conformance of the development with City plans and ordinances. The City may also
use the Agreements to address other issues related to the development.
City of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-16 2-16
Pursuant to M.S., Section 469.176, Subd. 5, no more than 25 percent, by acreage, of the property to be acquired in
the District as set forth in the TIF Plan shall at any time be owned by the City as a result of acquisition with the
proceeds of bonds issued pursuant to M.S., Section 469.178 to which tax increments from property acquired is
pledged, unless prior to acquisition in excess of 25 percent of the acreage, the City concluded an agreement for the
development or redevelopment of the property acquired and which provides recourse for the City should the
development or redevelopment not be completed.
Subsection 2-22. Assessment Agreements
Pursuant to M. S., Section 469.177, Subd. 8, the City may enter into a written assessment agreement in recordable form
with the developer of property within the District which establishes a minimum market value of the land and
completed improvements for the duration of the District. The assessment agreement shall be presented to the County
Assessor who shall review the plans and specifications for the improvements to be constructed, review the market
value previously assigned to the land upon which the improvements are to be constructed and, so long as the
minimum market value contained in the assessment agreement appears, in the judgment of the assessor, to be a
reasonable estimate, the County Assessor shall also certify the minimum assessment agreement.
Subsection 2-23. Administration of the District
Administration of the District will be handled by the City Administrator.
Subsection 2-24. Annual Disclosure Requirements
Pursuant to M.S., Section 469.175, Subds. 5, 6, and 6b the City must undertake financial reporting for all tax
increment financing districts to the Office of the State Auditor, County Board and County Auditor on or before
August 1 of each year. M.S., Section 469.175, Subd. 5 also provides that an annual statement shall be published in
a newspaper of general circulation in the City on or before August 15.
If the City fails to make a disclosure or submit a report containing the information required by M.S., Section 469.175
Subd. 5 and Subd. 6, the Office of the State Auditor will direct the County Auditor to withhold the distribution of
tax increment from the District.
Subsection 2-25. Reasonable Expectations
As required by the TIF Act, in establishing the District, the determination has been made that the anticipated
development would not reasonably be expected to occur solely through private investment within the reasonably
foreseeable future and that the increased market value of the site that could reasonably be expected to occur without
the use of tax increment financing would be less than the increase in the market value estimated to result from the
proposed development after subtracting the present value of the projected tax increments for the maximum duration
of the District permitted by the TIF Plan. In making said determination, reliance has been placed upon City staff
awareness of the feasibility of developing the project site(s) within the District. A comparative analysis of estimated
market values both with and without establishment of the District and the use of tax increments has been performed
as described above. Such analysis is included with the cashflow in Appendix D, and indicates that the increase in
estimated market value of the proposed development (less the indicated subtractions) exceeds the estimated market
value of the site absent the establishment of the District and the use of tax increments.
City of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-16 2-17
Subsection 2-26.Other Limitations on the Use of Tax Increment
General Limitations. All revenue derived from tax increment shall be used in accordance with the TIF Plan. The
revenues shall be used to finance, or otherwise pay the capital and administration costs of Development District
No. 4 pursuant to M.S., Sections 469.124 to 469.133. Tax increments may not be used to circumvent existing levy
limit law. No tax increment may be used for the acquisition, construction, renovation, operation, or maintenance
of a building to be used primarily and regularly for conducting the business of a municipality, county, school
district, or any other local unit of government or the state or federal government. This provision does not prohibit
the use of revenues derived from tax increments for the construction or renovation of a parking structure.
2. Pooling Limitations. At least 75 percent of tax increments from the District must be expended on activities in
the District or to pay bonds, to the extent that the proceeds of the bonds were used to finance activities within
said district or to pay, or secure payment of, debt service on credit enhanced bonds. Not more than 25 percent
of said tax increments may be expended, through a development fund or otherwise, on activities outside of the
District except to pay, or secure payment of, debt service on credit enhanced bonds. For purposes of applying
this restriction, all administrative expenses must be treated as if they were solely for activities outside of the
District.
Five Year Limitation on Commitment of Tax Increments. Tax increments derived from the District shall be
deemed to have satisfied the 75 percent test set forth in paragraph (2) above only if the five year rule set forth
in M.S., Section 469.1763, Subd. 3, has been satisfied; and beginning with the sixth year following certification
of the District, 75 percent of said tax increments that remain after expenditures permitted under said five year
rule must be used only to pay previously committed expenditures or credit enhanced bonds as more fully set forth
in M.S., Section 469.1763, Subd. 5.
4. Redevelopment District. At least 90 percent of the revenues derived from tax increment from a redevelopment
district must be used to finance the cost of correcting conditions that allow designation of redevelopment and
renewal and renovation districts under M.S., Section 469.176 Subd. 4j. These costs include, but are not limited
to, acquiring properties containing structurally substandard buildings or improvements or hazardous substances,
pollution, or contaminants, acquiring adjacent parcels necessary to provide a site of sufficient size to permit
development, demolition and rehabilitation of structures, clearing of the land, the removal of hazardous
substances or remediation necessary for development of the land, and installation of utilities, roads, sidewalks,
and parking facilities for the site. The allocated administrative expenses of the City, including the cost of
preparation of the development action response plan, may be included in the qualifying costs.
Subsection 2-27. Summary
The City of Hutchinson is establishing the District to preserve and enhance the tax base, redevelop substandard areas,
and provide employment opportunities in the City. The TIF Plan for the District was prepared by Ehlers &
Associates, Inc., 3060 Centre Pointe Drive, Roseville, Minnesota 55113, telephone (651) 697-8500.
City of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-16 2-18
Appendix A
Project Description
The proposed Tax Increment District project involves acquisition of the property located at I I I Hassen St SE in
Hutchinson, by the Economic Development Authority (the "EDA"). In order to prepare the site for new commercial
or office development, the EDA will use tax increments generated to pay for costs incurred for demolition and
removal of the existing building, site corrections, parking lot maintenance and repair, and the possible addition of
a new sidewalk segment. The EDA will issue an interfund loan to Development District No 5, the 1990 Shopko
redevelopment tax increment district. The increments received from the proposed District will repay the interfund
loan.
(As Modified December 8, 2020)
In addition to the original proposed project and in order to spur development of that project, the proposed
expansion of the Tax Increment District project involves acquisition of the property located across the street
at 135 Franklin Street N in Hutchinson, by the Economic Development Authority (the "EDA"). In order to
prepare the site for new apartment project development, the EDA will use tax increments generated to pay
for costs incurred for demolition and removal of the existing building and site preparation. The EDA issued
an interfund loan to Development District No 5, the 1990 Shopko redevelopment tax increment district and
will issue an additional interfund loan for up to $150,000 to the Downtown Revolving Loan Fund. The
increments received from the modified District will repay the interfund loans.
Appendix
A-1
Appendix B
Map of Development District No. 4 and the District
Appendix B_1
TIF District Inset
M
HuteMi nson
1210962975
1 - I A 1
Tax Increment Financing District No. 4-16
Development District No. 4
City of Hutchinson
McLeod County, Minnesota
®M®
Ili. �•�; �����
1=
I HE
Map of Development District No. 4 and the Expanded District
(As Modified on December 8, 2020)
Appendix B_2
T1F District Inset
Hvtchincon
Tr,
Tax Increment Financing District No. 4-16
MMMM
Development District No. 4
City of Hutchinson
McLeod County, Minnesota
Appendix C
Description of Property to be Included in the District
The District encompasses all property and adjacent rights -of -way and abutting roadways identified by the parcel
listed below.
Parcel Numbers
Address
Owner
23.056.2880
111 Hassan St SE
Applegate Properties LLC
(As Modified December 8, 2020)
The District encompasses all property and adjacent rights -of -way and abutting roadways identified by the
parcel listed below.
Parcel Numbers
Address
Owner
23.056.2880
111 Hassan St SE
City of Hutchinson
23.056.3040
135 Franklin St N
McLeod Treatment Programs Inc.
Appendix
C-1
Appendix D
Estimated Cash Flow for the District
Appendix D-1
WWli .
DistrictType:
District Name/Number:
County District #:
First Year Construction or Inflation on Value
Existing District - Specify No. Years Remaining
Inflation Rate - Every Year:
Interest Rate:
Present Value Date:
First Period Ending
Tax Year Distinct was Certified:
Cashflow Assumes First Tax Increment For Development:
Years of Tax Increment
Assumes Last Year of Tax Increment
Fiscal Disparities Election [Outside (A), Inside (B), or NA]
Incremental or Total Fiscal Disparities
Fiscal Disparities Contribution Ratio
Fiscal Disparities Metro -Wide Tax Rate
Maximum/Frozen Local Tax Rate:
Current Local Tax Rate: (Use lesser of Current or Max.)
State-wide Tax Rate (Comm./Ind. only used for total taxes)
Market Value Tax Rate (Used for total taxes)
Base Value Assumptions -Page 1
EHLERS
RAPER$ IN PVBIIV rINAN4
TIF District No 4-16
City of Hutchinson
Redevelopment Project
Redevelopment
Tax Rates
TIF District No. 4-16
Exempt Class Rate (Exempt)
0.00%
2017
Commercial Industrial Preferred Class Rate (C/I Pref.)
First $150,000
1.50%
3.00°/.
Over $150,000
2.00%
4.00o/.
Commercial Industrial Class Rate (C/1)
2.00%
1-Aug-16
Rental Housing Class Rate (Rental)
1.25%
1-Feb-17
Affordable Rental Housing Class Rate (Aff. Rental)
Pay 2016
First $106,000
0.75%
2019
Over $106,000
0.25%
26
Non -Homestead Residential (Non-H Res. 1 Unit)
2044
First $500,000
1.00%
NA
Over $500,000
1.25%
Incremental
Homestead Residental Class Rate (Hmstd. Res.)
0.0000%
Pay 2016 TNT
First $500,000
1.00%
0.0000%
Pay 2016 TNT
Over $500,000
1.25%
146.095%
Pay 2016 TNT
Agricultural Non -Homestead
1.00%
146.095%
Pay 2016 TNT
49.0000%
Pay 2016 TNT
0.19340%
Pay 2016 TNT
VALUE INFORMATION
Capacity)BASE
(Original Tax
Building
Total
Percentage
Tax Year Property
Current
Class
After
Land Market
Market
Of Value Used
Original
Original Tax
Original
After
Conversion Area/
lap# PID Owner Address Market Value Value
Value
for District
Market Value
Market Value Class
Tax Capacity
Conversion
Ong. Tax Cap. Phase
126 23-056-2880 Applegate Properties 126 Franklin St 364,100 92,000
456,100
100 %
456,100
Pay 2016 C/I Pref.
8,372
C/I Pref.
8,372
456,100
8,372
8,372
Note:
1. Base values are based email from County auditor on 1/11/16.
Prepenxi by Ehlers 8 Associates, Inc_ - Estimates Only N W,nnsota\Hutchinson\Housing - Economic - R.d..1opment\TIF\TIF D,Mnct ATIF 416\Fiscal Impl-tons TIF Run 1.17_16.1a
Base Value Assumptions -Page 2
EHLERS
lEAOERS IN PUV{IL f IMAe�[
TIF District No 4-16
City of Hutchinson
Redevelopment Project
PROJECTe"
e
Estimated Taxable
Total Taxable
Property
Percentage
Percentage
Percentage
Percentage
First Year
Market Value Market Value Total
Market
Tax
Project
Project Tax
Completed
Completed
Completed
Completed
Full Taxes
Area/Phase New Use Per Sq. Ft./Unit Per Sq. Ft./Unit Sq. Ft./Units
Value
Class
Tax Capacity
Capacity/Unit
2017
2018
2019
2020
Payable
Commerical 1,565,000 1,565,000 1
1,565,000
C/I Pref.
30,550
30,550
100%
100%
100%
100%
2019
iubtotal Residential 0
0
0
iubtotal Commercial/Ind. 1
1,565,000
30,550
Note:
1. Market values are based upon estimates from City staff.
CALCULATIONSTAX
o a Isca oca oca Isca a e-wl a ar e
Tax Disparities Tax Property Disparities Property Value Total Taxes Per
New Use Ca aci Tax CapcityaCapacity Taxes Taxes Taxes Taxes Taxes S .Ft./Unit
Commerical 30,550 0 30,550 1 44,632 0 14,970 3,027 62,628 62.628.23
Jote:
1. Taxes and tax increment will vary signficantly from year to year depending upon values, rates, state law, and other factors which cannot be predicted.
WHAT IS EXCLUDED FROM
Total ProL
s 62,628 Current Market Value -Es[. 456,10essStats (14,970) New MarketValue-Est. 1,565,000
73
lessFisc. 0 DifferenceessMarxes (3,027) Present Value ofTax Increment
essBases (12,231) Difference
Annual Value likely to occur without Tax Increment is less than:
Prepare! by Ehlers 8 Associates, Inc_ - Estimates Only N W,nnsota\Hutchinson\Housing - Economic - Redevelopment\TIF\TIF Districts\TIF 416\Fisca1 Impl-tons TIF Run 1.17_16 xls
Tax Increment Cashflow - Page 3
EHLERS
uwue•r .0
TIF District No 4-16
City of Hutchinson
Redevelopment Project
%oF Tax Tax Disparities Tax Tax Gross Tax I Gross Tax Auditor at Net Tax Present I ENDING Tax Payment
-
-
-
-
08/01/17
-
-
-
-
02/01/18
-
-
-
-
08/01/18
-
-
-
-
02/01/19
100%
30,550
(8,372) -
22,178
146.095%
32,401
16,200
(58)
(1,614)
14,528
12,900
0.5
2019 08/01/19
16,200
(58)
(1,614)
14,528
25,548
1
2019 02/01/20
100%
31,467
(8,372) -
23,095
146.095%
33,740
16,870
(61)
(1,681)
15,128
38,460
1.5
2020 08/01/20
16,870
(61)
(1,681)
15,128
51,118
2
2020 02/01/21
100%
32,410
(8,372) -
24,038
146.095%
35,119
17,560
(63)
(1,750)
15,747
64,036
2.5
2021 08/01/21
17,560
(63)
(1,750)
15,747
76,701
3
2021 02/01/22
100%
33,383
(8,372) -
25,011
146.095%
36,540
18,270
(66)
(1,820)
16,384
89,619
3.5
2022 08/01/22
18,270
(66)
(1,820)
16,384
102,284
4
2022 02/01/23
100%
34,384
(8,372) -
26,012
146.095%
38,003
19,00
(68)
(1,893)
17,040
115,198
4.5
2023 08/01/23
19,001
(68)
(1,893)
17,040
127,859
5
2023 02/01/24
100%
35,416
(8,372) -
27,044
146.095%
39,510
19,755
(71)
(1,968)
17,715
140,763
5.5
2024 08/01/24
19,755
(71)
(1,968)
17,715
153,415
6
2024 02/01/25
100%
36,478
(8,372) -
28,106
146.095%
41,062
20,531
(74)
(2,046)
18,411
166306
6.5
2025 08/01/25
20,531
(74)
(2,046)
18,411
178:944
7
2025 02/01/26
100%
37,573
(8,372) -
29,201
146.095%
42,661
21,330
(77)
(2,125)
19,128
191,817
7.5
2026 08/01/26
21,330
(77)
(2,125)
19,128
204,437
8
2026 02/01/27
100%
38,700
(8,372) -
30,328
146.095%
44,307
22,154
(80)
(2,207)
19,867
217,287
8.5
2027 08/01/27
22,154
(80)
(2,207)
19,867
229,886
9
2027 02/01/28
100%
39,861
(8,372) -
31,489
146.095%
46,004
23,002
(83)
(2,292)
20,627
242,710
9.5
2028 08/01/28
23,002
(83)
(2,292)
20,627
255,283
10
2028 02/01/29
100%
41,057
(8,372) -
32,685
146.095%
47,751
23,875
(86)
(2,379)
21,410
268,078
10.5
2029 08/01/29
23,875
(86)
(2,379)
21,410
280,621
11
2029 02/01/30
100%
42,288
(8,372) -
33,916
146.095%
49,550
24,775
(89)
(2,469)
22,217
293,382
11.5
2030 08/01/30
24,775
(89)
(2,469)
22,217
305,893
12
2030 02/01/31
100%
43,557
(8,372) -
35,185
146.095%
51,404
25,702
(93)
(2,561)
23,048
318,617
12.5
2031 08/01/31
25,702
(93)
(2,561)
23,048
331,092
13
2031 02/01/32
100%
44,864
(8,372) -
36,492
146.095%
53,313
26,656
(96)
(2,656)
23,904
343,776
13.5
2032 08/01/32
26,656
(96)
(2,656)
23,904
356,212
14
2032 02/01/33
100%
46,210
(8,372) -
37,838
146.095%
55,279
27,639
(100)
(2,754)
24,786
368,854
14.5
2033 08/01/33
27,639
000)
(2,754)
24,786
381,247
15
2033 02/01/34
100%
47,596
(8,372) -
39,224
146.095%
57,304
28,652
(103)
(2,855)
25,694
393,843
15.5
2034 08/01/34
28,652
(103)
(2,855)
25,694
16:192
16
2034 0101/31
100%
49,024
(8,372) -
40,652
146.095%
59,390
29,695
(107)
(2,959)
26,629
418,739
16.5
2035 08/01/35
29,695
(107)
(2,959)
26,629
431,041
17
2035 02/01/36
100%
50,494
(8,372) -
42,122
146.095%
61,539
30,769
(111)
(3,066)
27,593
443,537
17.5
2036 08/01/36
30,769
(111)
(3,066)
27,593
455,789
18
2036 02/01/37
100%
52,009
(8,372) -
43,637
146.095%
63,752
31,876
(115)
(3,176)
28,585
468,232
18.5
2037 08/01/37
31,876
(115)
(3,176)
28,585
480,431
19
2037 02/01/38
100%
53,570
(8,372) -
45,198
146.095%
66,031
33,016
(119)
(3,290)
29,607
492,819
19.5
2038 08/01/38
33,016
(119)
(3,290)
29,607
504,964
20
2038 02/01/39
100%
55,177
(8,372) -
46,805
146.095%
68,379
34,190
(1293
(3,4007
390660
517,294
20.5
2039 08/01/39
34,190
(123)
(3,407)
30,10
529,382
21
2039 02/01/1
100%
56,832
(8,372) -
48,460
146.095%
70,798
35,399
(127)
(3,527)
31,744
541,652
21.5
2040 08/01/40
35,399
(127)
(3,527)
31,744
553,682
22
2040 02/01/41
100%
58,537
(8,372) -
50,165
146.095%
73,288
36,644
(132)
(3,651)
32,861
565,891
22.5
2041 08/01/41
36,644
(132)
(3,651)
32,861
577,860
23
2041 02/01/42
100%
60,293
(8,372) -
51,921
146.095%
75,854
37,927
(137)
(3,779)
34,011
590,006
23.5
2042 08/01/42
37,927
(137)
(3,779)
34,011
601,913
24
2042 02/01/43
100%
62,102
(8,372) -
53,730
146.095%
78,497
39,248
(141)
(3,911)
35,196
613,994
24.5
2043 08/01/43
39,248
(141)
(3,911)
35,196
625,837
25
2043 02/01/44
100%
63,965
(8,372) -
55,593
146.095%
81,218
40,648
(146)
(4,046)
36,417
637,852
25.5
2044 08/01/44
40,609
146
4,046
36,417
649,630
26
2044 02JO1145
Total
1,402,692
(5,050)
(139,764)
1,257,878
Present
Value From 08/01/2016
Present Value Rate
4.00%
724,419
2,608
72,181
649,63.
Preps by EM1lers B A-iat Inc.- E9im - Only
Estimated Cash Flow for the District
(As Modified December 8, 2020)
Appendix D_2
11/5/2020 Base Value Assumptions - Page 1
EHLERS
=�euc rlNnNce npvlsoRs
2020 Expansion to TIF 4-16
City of Hutchinson, MN
Franklin Street Rental Townhome Project 23 Units
DistrictType:
Redevelopment
Tax Rates
District Name/Number: TF District 4-16 Expansion
County District #:
Exempt Class Rate (Exempt)
0.00 %
First Year Construction or Inflation on Value
2021
Commercial Industrial Preferred Class Rate (C/I Pref.)
Existing District- Specify No. Years Remaining
26
First $150,000
1.50%
Inflation Rate - Every Year:
3.00T.
Over $150,000
2.00%
Interest Rate:
4.00T.
Commercial Industrial Class Rate (C/1)
2.00%
Present Value Date:
1-Aug-22
Rental Housing Class Rate (Rental)
1.25%
First Period Ending
1-Feb-23
Affordable Rental Housing Class Rate (Aff. Rental)
Tax Year District was Certified:
Pay 2021
First $162,000
0.75%
Cashflow Assumes First Tax Increment For Development:
2023
Over $162,000
0.25%
Years of Tax Increment
26
Non -Homestead Residential (Non-H Res. 1 Unit)
Assumes Last YearofTax Increment
2048
First $500,000
1.00%
Fiscal Disparities Election [Outside (A), Inside (B), or NA]
NA
Over $500,000
1.25%
Incremental or Total Fiscal Disparities
Homestead Residential Class Rate (Hmstd. Res.)
Fiscal Disparities Contribution Ratio
First $500,000
1.00%
Fiscal Disparities Metro -Wide Tax Rate
Over $500,000
1.25%
Maximum/Fr.en Local Tax Rate:
164.147%
Pay2020
Agricultural Non -Homestead
1.00%
Current Local Tax Rate: (Use lesser of Current or Max.)
164.147%
Pay 2020
State-wide Tax Rate (Comm./Ind. only used for total taxes)
38.8460%
Pay 2020
Market Value Tax Rate (Used for total taxes)
0.19188%
Pay 2020
BASE
VALUE INFORMATION
Building
Total
Percentage
Tax Year
Property
Current
Class
After
Land Market
Market
Of Value Used
Original
Original
Tax
Original
After
Conversion
Map
Areal
ID PID Owner Address Market Value Value
Value
for District
Market Value
Market Value
Class
Tax Capacity
Conversion
Orig. Tax Cap. Phase
1 23-056-3040 McLeod Treament 135 Franklin St 45,900 134,100
180,000
100%
180,000
Pay 2021
Exempt
-
Rental
2,250 1
180,000
0
2,250
Note:
1. Base values are for pay 2020 based upon review of County website on 8/25/20.
2. Located in SD # 0423.
R.Wod by Ehlers&As. isles, Inc.-Estimales Only N1 x..ta\H.khx-.kHouxg-Economic-Red—lopmeM IRTIF Oshicis\TIF 41612020 MOpFlI3ATIONI020 TIF Run F.A Implications Exxr. on Prj t
Base Value Assumptions - Paget
EHLERS
'16LIC =iNANCE /+DVISORS
2020 Expansion to TIF 4-16
City of Hutchinson, MN
Franklin Street
Rental Townhome Project 23 Units
Estimated
Taxable
PROJECT•.
Total Taxable
Property
Percentage
Percentage
Percentage
Percentage
First Year
Market Value
Market Value
Total
Market
Tax
Project
Project Tax
Completed
Completed
Completed
Completed
Full Taxes
Area/Phase New Use Per Sq. Ft./Unit
Per Sq. FtJUnit
Sq. Ft./Units
Value
Class
Tax Capacity
Capacity/Unit
2021
2022
2023
2024
Payable
1 Apartrents 180,000
WIAL
180,000
23
4,140,000
4,140,000
Rental
51,750
51,750
2,250
100%
100%
100%
100%
2023
Subtotal Residential
23
4,140,000
51,750
Subtotal CommercialMd.
0
0
0
Note:
1. Market values are based upon County Assessor's estimate of 10.05.20.
New Uee
o a Isca oca
Tax Disparities Tax
Capacity Tax Capacity Capacity
TAXCALCULATIONS
oca Isca e-xg a r e
Property Disparities Property Value
Taxes Taxes Taxes Taxes
Total
Taxes
Taxes Per
Sq. Ft./Unit
Apartments
0
51,750 0 51,750
0 0 0
84,946 0 0 7,944
0 0 0 0
92.890
0
4,038.69
#DIV/0!
Note:
1. Taxes and tax increment will vary significantly from year to year depending upon values, rates, state law and other factors
which cannot be predicted.
WHAT IS EXCLUDED FROM • ANALYSIS
-
oa rope axes urren[ are[ aue- s[.
less State-wide Taxes 0 New Market Value - Est. 4,140:000
less Fiscal Disp. Adj. 0 Difference
less Market Value Taxes (7,944) Present Value of Tax Increment 1,801,027
less Base Value Taxes (3,693) Difference 2,158,977
Annual Gross TIF Value likely to occur without Tax Increment is less titan:
Reparetl by Ehlers&As. fates, lnc.-Estimates Only N 1Minnsota\H.khinwnW--g-Economic-RcJ-1opment\TIRTIF OstriciJIF 416 020 MOURCATIONI020 TIF Run F.A Implications E�nsion Ra t
11/5/2020
le%EHLERS
2020 Expansion to TIF 4-16
City of Hutchinson, MN
Franklin Street Rental Townhome Project 23 Units
Tax Increment Cashflow- Page 3
Project Original Fiscal Captured Local Annual Semi -Annual State Admin. Semi -Annual Semi -Annual PERIOD
% of Tax Tax Disparities Tax Tax Gross Tax Gross Tax Auditor at Net Tax Present ENDING Tax Payment
100%
51,750
(2,250) -
49,500
164.147%
81,253
40,626
(146)
(4,048)
36,432
35,017
0.5
2023
08/01/23
40,626
(146)
(4,048)
36,432
69,348
1
2023
02/01/24
100%
53,303
(2,250) -
51,053
164.147%
83,801
41,901
(151)
(4,175)
37,575
104,061
1.5
2024
08/01/24
41,901
(151)
(4,175)
37,575
138,094
2
2024
02/01/25
100%
54,902
(2,250) -
52,652
164.147%
86,426
43,213
(156)
(4,306)
38,752
172,504
2.5
2025
08/01/25
43,213
(156)
(4306)
38,752
206,240
3
2025
02/01/26
100%
56,549
(2,250) -
54,299
164.147%
89,130
44,565
(160)
(4:440)
39,964
240,349
3.5
2026
08/01/26
44,565
(160)
(4,440)
39,964
273,789
4
2026
02/01/27
100%
58,245
(2,250) -
55,995
164.147%
91,914
45,957
(165)
(4579)
41,213
307,598
4.5
2027
08/01/27
45,957
(165)
(4:579)
41,213
340,743
5
2027
02/01/28
100%
59,992
(2,250) -
57,742
164.147%
94,782
47,391
(171)
(4,722)
42,499
374,253
5.5
2028
08/01/28
47,391
(171)
(4,722)
42,499
407,106
6
2028
02/01,29
100%
61,792
(2,250) -
59,542
164.147%
97,737
48,868
(176)
(4,869)
43,823
440,318
6.5
2029
08/01/29
48,868
(176)
(4,869)
43,823
472,880
7
2029
02/01/30
100%
63,646
(2,250) -
61,396
164.147%
100,780
50,390
(181)
(5,021)
45,188
505,796
7.5
2030
08/01/30
50,390
(181)
(5,021)
45,188
531,061
8
2030
0210111
100%
65,555
(2,250) -
63,305
164.147%
103,914
51,957
(187)
(5, 1771
46,593
570,690
8.5
2031
08/01/31
51,957
(187)
(5,177)
46,593
602,673
9
2031
02/01/32
100%
67,522
(2,250) -
65,272
164.147%
107,142
53,571
(193)
(5,3381
48,040
635,003
9.5
2032
08/01/32
53,571
(193)
(5,338)
48,040
666,699
10
2032
02/01/33
100%
69,548
(2,250) -
67,298
164.147%
110,467
55,234
(199)
(5,503)
49,531
698,737
10.5
2033
01101133
55,234
(199)
(5,503)
49,531
730,148
11
2033
02/01/34
100%
71,634
(2,250) -
69,384
164.147%
113,892
56,946
(205)
(5674)
51,067
761897
11.5
2034
O8/01/34
56,946
(205)
(5:674)
51,067
793:024
12
2034
02/01/35
100%
73,783
(2,250) -
71,533
164.147%
117,419
58,710
(211)
(5,850)
52,649
824,486
12.5
2035
08/01/35
58710
(211)
(5,850)
52,649
855,330
13
2035
02/01/36
100%
75,997
(2,250) -
73,747
164.147%
121,053
6N26
(218)
(6,031)
54,278
886,506
13.5
2036
08/01/36
60,526
(218)
(6,031)
54,278
917,071
14
2036
02/01/37
100%
78,277
(2,250) -
76,027
164.147%
124,795
62,398
(225)
(6217)
55,956
947,962
14.5
2037
O8/01/37
62,398
(225)
(6:217)
55,956
978,248
15
2037
02/01/38
100%
80,625
(2,250) -
78,375
164.147%
128,650
64,325
(232)
(6,409)
57,684
1,008,857
15.5
2038
08/01/38
64,325
(232)
(6,409)
57,684
1,038,866
16
2038
02/01/39
100%
83,044
(2,250) -
80,794
164.147%
132,620
66,310
(239)
(6,607)
59,464
1,069,194
16.5
2039
08/01/39
66,310
(239)
(6,607)
59,464
1,098,928
17
2039
02/01/40
100%
85,535
(2,250) -
83,285
164.147%
136,710
68,355
(246)
(6,811)
61,298
1,128,978
17.5
2040
08/01/40
68,355
(246)
(6,811)
61,298
1,158,438
18
2040
02/01/41
100%
88,101
(2,250) -
85,851
164.147%
140,922
7 0, 461
(254)
(7,021)
63,186
1,188,211
18.5
2041
08/01/41
70,461
(254)
(7,021)
63,186
1,217,400
19
2041
02/01/42
100%
90,744
(2,250) -
88,494
164.147%
145,260
72,630
(261)
(7,2371
65,132
1,246,897
19.5
2042
08/01/42
72,630
(261)
(7,237)
65,132
1,275,816
20
2042
02/01/43
100%
93,466
(2,250) -
91,216
164.147%
149,729
74,864
(270)
(7,459)
67,135
1,305'041
20.5
2043
01101143
74,864
(270)
(7,459)
67,135
1,333,692
21
2043
02/01/44
100%
96,270
(2,250) -
94,020
164.147%
154,331
77,166
(278)
(7,689)
69,199
1,362,645
21.5
2044
08/01/44
77, 166
(278)
(7,689)
69,199
1,391,030
22
2044
02/01/45
100%
99,158
(2,250) -
96,908
164.147%
159,072
79,536
(286)
(7,925)
71,325
1,419,714
22.5
2045
08/01/45
79,536
(286)
(7,925)
71,325
1,447,835
23
2045
02/01/46
100%
102,133
(2,250) -
99,883
164.147%
163,955
81,978
(295)
(8,168)
73,514
1,476,251
23.5
2046
08/01/46
81,978
(295)
(8,168)
73,514
1,504,110
24
2046
02/01/47
100%
105,197
(2,250) -
102,947
164.147%
168,985
84,492
(304)
(8,419)
75,769
1,532,260
24.5
2047
08/01/47
84,492
(304)
(8,419)
75,769
1,559,858
25
2047
02/01/48
100%
108,353
(2,250) -
106,103
164.147%
174,165
87,082
(313)
(8,677)
78,092
1,587,745
25.5
2048
08/01/48
87,082
313
8,677
78,092
1,615,085
26
2048
02/01/49
Total
3,178,904
(11 ,444)
(316,746)
3,850,714
Presen[Value
From 08/01/2022
Presen[Value Rate
4.00%
1:.1,023
(6,484)
1179,454)
1,615,085
Pm,xu-ctl by Ehlers B Associates, Inc_ -Estimates Only N W u,nsola\Hutchinson\Housing-Economic-Retlevelopment\TIF\TIF Oisincis\TIF 4-16VD2D MOOIFICATIONVIVOTIF Run Fiscal Implications Expansion Prgect
Appendix E
Minnesota Business Assistance Form
(Minnesota Department of Employment and Economic Development)
A Minnesota Business Assistance Form (MBAF) should be used to report and/or update each calendar year's activity
by April 1 of the following year.
Please see the Minnesota Department of Employment and Economic Development (DEED) website at
http://www.deed.state.mn.us/Community/subsidies/MBAFForrn.htm for information and forms.
Appendix
E-1
Appendix F
Redevelopment Qualifications for the District
Appendix F-1
Redevelopment Tax Increment Financing District
Eligibility Study
Modification of TIF District 4-16
to include
"Franklin House"
135 Franklin Street NW
Prepared By
Miles R. Seppelt, EDA Director
Kyle Dimler, Building Official
November 20, 2020
I. Governing Statutory Language
To be eligible for a Redevelopment Tax Increment Financing District, the area to be
redeveloped must meet certain requirements as outlined in state statute. These
are:
Minnesota Statute 469.174
Subd. 10. Redevelopment district.
Subd. 10 (a)
"Redevelopment district" means a type of tax increment financing district consisting of
a project, or portions of a project, within which the authority finds by resolution that
one or more of the following conditions, reasonably distributed throughout the district,
exists:
(])parcels consisting of 70 percent of the area of the district are occupied by buildings,
streets, utilities, paved or gravel parking lots, or other similar structures and more than
50 percent of the buildings, not including outbuildings, are structurally substandard to
a degree requiring substantial renovation or clearance;
Subd. 10 (b)
For purposes of this subdivision, "structurally substandard" shall mean containing
defects in structural elements or a combination ofdefzciencies in essential utilities and
facilities, light and ventilation, fire protection including adequate egress, layout and
condition of interior partitions, or similar factors, which defects or deficiencies are of
sufficient total significance to justify substantial renovation or clearance.
Subd. 10 (c)
A building is not structurally substandard if it is in compliance with the building code
applicable to new buildings or could be modified to satisfy the building code at a cost
of less than 15 percent of the cost of constructing a new structure of the same square
footage and type on the site. The municipality may find that a building is not
disqualified as structurally substandard under the preceding sentence on the basis of
reasonably available evidence, such as the size, type, and age of the building, the
average cost of plumbing, electrical, or structural repairs, or other similar reliable
evidence. The municipality may not make such a determination without an interior
inspection of the property, but need not have an independent, expert appraisal
prepared of the cost of repair and rehabilitation of the building. An interior inspection
of the property is not required, if the municipality finds that (1) the municipality or
authority is unable to gain access to the property after using its best efforts to obtain
permission from the party that owns or controls the property; and (2) the evidence
otherwise supports a reasonable conclusion that the building is structurally
substandard. Items of evidence that support such a conclusion include recent fire or
police inspections, on -site property tax appraisals or housing inspections, exterior
evidence of deterioration, or other similar reliable evidence. Written documentation of
the findings and reasons why an interior inspection was not conducted must be made
and retained under section 469.175, subdivision 3, clause (1). Failure of a building to
be disqualified under the provisions of this paragraph is a necessary, but not a
sufficient, condition to determining that the building is substandard.
Subd. 10(e)
For purposes of this subdivision, a parcel is not occupied by buildings, streets, utilities,
paved or gravel parking lots, or other similar structures unless 15 percent of the area
of the parcel contains buildings, streets, utilities, paved or gravel parking lots, or other
similar structures.
II. Study Area
Figure 1— Aerial view of study area
Zhf D AVE NW
i
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135
133 ,14014,
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114
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The modification of Development TIF District 4-16 will add 135 Franklin Street NW in
downtown Hutchinson to the existing redevelopment district. The site is composed
of one city lot known as the "Franklin House."
Table 1— Identification of Study Area
"Franklin house" 135 Franklin Street NW Lots 9 & 10, excluding WILY
1/3, Blk 42, North Half of
Hutchinson, County of
McLeod, MN
f
145
135
Y 125
3
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r
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W
J
145 135
Figure 2 — Map of Study Area
126
L S
z
F I25
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J
z
W
IL
115
SG
3
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H
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A
1ST AVE NW 1st Ave NW LL
Np AVE NW
1'
III. Criterion 1
Minnesota Statute 469.174, Subd. 10 (1) states:
"(1) parcels consisting of 70 percent of the area of the district are occupied by
buildings, streets, utilities, paved or gravel parking lots, or other similar structures... "
Findings
There is one parcel in the proposed addition to the TIF-4-16 Redevelopment TIF
District. This one lot is occupied by a house, shed and sidewalks.
1 parcel = 100%
1 occupied
Since 100% of the parcels in the proposed Redevelopment TIF District are in fact
occupied by buildings and related items as specified in statute, this criterion is
satisfied.
IV. Criterion 2
The second criterion that must be satisfied is that more than one-half of the buildings
in the proposed redevelopment district must be found to be substandard based upon
an internal inspection. The governing statutes state:
Minnesota Statute 469.174, Subd 10. (1)
"...and more than 50 percent of the buildings, not including outbuildings, are
structurally substandard to a degree requiring substantial renovation or clearance; "
Findings
There is one building, not including outbuildings, on the parcel and it was found to
be substandard based upon an internal inspection. (see below).
1 sub -standard building = 100%
1 building on the lot
100% of the buildings on the parcel were found to be substandard, thus satisfying
the criterion in Minnesota Statute 469.174, Subd 10. (1).
Minnesota Statute 469.174, Subd. 10 (b) further states:
For purposes of this subdivision, "structurally substandard" shall mean containing
defects in structural elements or a combination ofdefzciencies in essential utilities and
facilities, light and ventilation, fire protection including adequate egress, layout and
condition of interior partitions, or similar factors, which defects or deficiencies are of
sufficient total significance to justify substantial renovation or clearance.
Subd. 10 (c)
A building is not structurally substandard if it is in compliance with the building code
applicable to new buildings or could be modified to satisfy the building code at a cost
of less than 15 percent of the cost of constructing a new structure of the same square
footage and type on the site. The municipality may find that a building is not
disqualified as structurally substandard under the preceding sentence on the basis of
reasonably available evidence, such as the size, type, and age of the building, the
average cost of plumbing, electrical, or structural repairs, or other similar reliable
evidence. The municipality may not make such a determination without an interior
inspection of the property, but need not have an independent, expert appraisal
prepared of the cost of repair and rehabilitation of the building. An interior inspection
of the property is not required, if the municipality finds that (1) the municipality or
authority is unable to gain access to the property after using its best efforts to obtain
permission from the party that owns or controls the property; and (2) the evidence
otherwise supports a reasonable conclusion that the building is structurally
substandard. Items of evidence that support such a conclusion include recent fire or
police inspections, on -site property tax appraisals or housing inspections, exterior
evidence of deterioration, or other similar reliable evidence. Written documentation of
the findings and reasons why an interior inspection was not conducted must be made
and retained under section 469.175, subdivision 3, clause (1). Failure of a building to
be disqualified under the provisions of this paragraph is a necessary, but not a
sufficient, condition to determining that the building is substandard.
Findings
An internal inspection of the "Franklin House" was completed on October 19, 2020.
Building Code violations, along with the estimated cost to repair, include the
following:
1. The west entry door is damaged and in need of replacement to provide a proper weather seal to
the exterior.
Cost to Remedy $800
2. The stair leading to the west entry deck contains uneven riser heights exceeding the 3/8"
maximum allowed by the MN Building Code and ought to be replaced.
Cost to Remedy $300
3. The southerly bathroom on the 1" level of the structure is not accessible as required by the MN
Accessibility Code:
a. The entry door does not provide the required 32" minimum clear width.
b. The lavatory/sink does not provide the required knee and toe clearance.
c. The accessories in the restroom are not within the reach range required by the MN
Accessibility Code.
d. The toilet is too close to the adjacent wall, the flush control lever is on the wrong side of the
water tank, and there are no grab bars provided as required.
Cost to Remedy $10,000 to $14,000
4. The stair to the basement level does not provide the minimum 36" deep landing as required.
Cost to Remedy $1,200
5. The stair to the 2nd level does not provide the required guard at portions greater than 30" above
the adjacent floor.
Cost to Remedy $1,200
6. The window in the 1" level kitchen is in need of replacement as the seal between the panes of
glass has become displaced.
Cost to Remedy $1,300
7. The floor surface in the 1" level kitchen is in need of repair to the uneven/inaccessible floor
surface remaining following some apparent partial demolition.
Cost to Remedy $1,400
8. The kitchen dishwasher wiring is not abandoned properly and exposed wiring is present.
Cost to Remedy $400
9. The short stair leading to the change in floor level on the 1" level's north end is in need of a
guard as a portion of the adjacent floor is greater than the maximum 7" above the adjacent
stair.
Cost to Remedy $400
10. The window in the northwest 1" level office area is in need of replacement as the seal between
the panes of glass appears to have become displaced.
Cost to Remedy $900
11. The northerly bathroom on the 1" level of the structure is not accessible as required by the MN
Accessibility Code:
a. No grab bars are provided at the toilet, as required.
b. The shower is not accessible at all.
c. The lavatory/sink does not provide the required knee and toe clearance.
d. The accessories in the restroom are not within the reach range required by the MN
Accessibility Code.
Cost to Remedy $7,500
12. The smoke/fire alarm system installed in the structure could not be verified to be operational. A
function test of the system should be completed and repairs/replacement of components be
made as necessary.
Cost to Remedy $200 to $2,000
13. The stair to the 2nd level's top riser does not comply with the 3/8" maximum variance from
greatest to least difference. The stair would need to be reconstructed.
Cost to Remedy $2,500 to $20,000 (may require addition to house to meet code)
14. The guard at the top of the stair to the 2nd level is less than 36" and needs to be replaced.
Cost to Remedy $1,200
15. The 2nd level restroom is not accessible:
a. A 30" wide space for the toilet is not provided and the toilet is essentially in an alcove
between the entry door and the adjacent lavatory.
b. The lavatory/sink does not provide the required knee and toe clearance.
c. The shower is not accessible at all.
Cost to Remedy $7,500
16. The accessories in the restroom are not within the reach range required by the MN Accessibility
Code.
Cost to Remedy $1,000
17. The bathroom entry door does not provide the minimum 32" clear width required.
Cost to Remedy $10,000 to $14,000
18. The exterior door at the top of the stair to the 2nd level has a step/landing at the immediate
edge of the threshold. The door needs to be raised.
Cost to Remedy $9,500 to $20,000 (may require reconstructing part of the building)
19. The 2nd level exterior balcony guard openings are greater than 4" exceeding the maximum
allowed. The guard rails needs to be reconstructed.
Cost to Remedy $2,500
20. The stair leading to the exterior grade from the exterior balcony does not provide a graspable
handrail as required.
Cost to Remedy $800
21. No fall protection devices are provided in the 2nd level sleeping room windows as required.
Cost to Remedy $4,000
22. The stair leading to the basement level is not provided with a continuous handrail as required.
Cost to Remedy $1,200
23. The stair leading to the basement has riser heights at the top and bottom that exceed the 3/8"
maximum variance from greatest to least difference. The stair would need to be reconstructed.
Cost to Remedy $2,500
24. In the northeast room of the basement (electrical/water softener room) in multiple locations,
PVC pipe is used as a "transition duct" for the HVAC system. PVC is not a permitted duct
material and this must be replaced.
Cost to Remedy $800 to $3,500
25. In the same room as Item 24, there is an open electrical junction box with accessible electrical
wiring exposed.
Cost to Remedy $400
26. The condensate drain tubing from the furnace is routed and crossing multiple electrical
distribution wires in the basement.
Cost to Remedy $400
27. The receptacle/switch box powering the furnace is hanging loose by its conduit and is need of
proper fastening.
Cost to Remedy $400
28. The PVC vent pipes serving the furnace are not supported at a maximum 48" on center as
required.
Cost to Remedy $100
29. The basement stair is not provided with a guard having openings less than 4" and a minimum
36" high as required.
Cost to Remedy $1,000
30. The ramp on the east side of the building provides no graspable handrails as required, no edge
protection as required, landings that are only 44" deep rather than the minimum 60" deep
required, and guards that are structurally unsound.
Cost to Remedy $3,500
31. The clothes dryer vent terminations are only approximately 4" above grade on the building
exterior rather than the minimum 12" above grade required.
Cost to Remedy $2,500
32. The 2nd level balcony ledger is not fastened to the building structure as required by code, the
exterior beam supporting the floor joists is not fastened to the supporting posts and have
almost no wood support material against rotation forces. Balcony is in need of reconstruction.
Cost to Remedy $9,000
33. The building's air conditioning unit is not provided with locking fill port caps as required by the
MN Mechanical Code.
Cost to Remedy $1,000
34. The plumbing serving the 2nd level bathroom is not provided with a trap as required. Trap is
installed in basement at lowest point of drain pipe rather than at fixtures it is serving as
required.
Cost to Remedy $400
35. The sump pump discharge in the basement is not connected to the discharge piping protruding
from the southerly exterior wall.
Cost to Remedy $300
Inspection was conducted by Kyle Dimler, Hutchinson Building Official.
Kyle Simler
Building Official
City Center 111 Hassan St. SE
Hutchinson, MN 55350
Phone: (320) 234-4220
Fax: (320) 234-4240
kdimler@ci.hutchinson.mn.us
Estimated repair costs along with the estimated cost of a new building of the same type was provided by
Ben Anderson, project estimator and manager for First Class Builders in Hutchinson, Minnesota.
Ben Anderson
Project Manager
First Class Builders - The Broll Team
902 Hwy. 15 South, Suite 400
Hutchinson, MN 55350
T: 320-234-7000
C: 320-583-4650
Per a cost estimate provided by First Class Builders, LLC, the total cost to bring the existing
building up to current building code standards would be between $88,100 and 128,600.
Also, per First Class Builders, a new building of the same type and size would cost approximately
$380,000.
Low Estimate High Estimate
Repair Cost $88,100 $128,600
New Building $380,000 $380,000
Percentage 23.2% 33.8%
Since the total cost to renovate the existing building is more than 15% of the cost to
construct a new building, the 'Franklin House' does meet the statutory definition of
substandard.
V. Criterion 3
Minnesota State Statute 469.174 Subd. 10(e) states:
For purposes of this subdivision, a parcel is not occupied by buildings, streets, utilities,
paved or gravel parking lots, or other similar structures unless 15 percent of the area
of the parcel contains buildings, streets, utilities, paved or gravel parking lots, or other
similar structures.
The parcel in question covers an area encompassing .330754 acres or 14,408 square
feet.
The improved area of the parcel is as follows:
Improvement Area (sf)
Buildings 1,800
Sidewalks 700
TOTAL 2,500
The total improved area is 2,500 square feet.
2,500 / 14,408 = 17.35
17.35 % of the parcel is 'improved,' therefore this criterion is satisfied.
VI. Conclusion
All statutory criteria are satisfied. Therefore the area of this study being considered
for a Redevelopment Tax Increment Financing District is in fact eligible for inclusion in
the existing Redevelopment TIF District (4-16).
Any questions regarding this eligibility study can be directed to Miles R. Seppelt,
Economic Development Director, City of Hutchinson at (320) 234-4223 or
mseppelt@ci.hutchinson.mn.us
Appendix G
Findings Including But/For Qualifications
The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan (TIF Plan) for
Tax Increment Financing District No. 4-16 (District), as required pursuant to Minnesota Statutes, Section 469.175,
Subdivision 3 are as follows:
1. Finding that Tax Increment Financing District No. 4-16 is a redevelopment district as defined in M.S., Section
469.174, Subd. 10.
The District consists of one parcel, with plans to redevelop the area for commercial/industrial purposes. At least
70 percent of the area of the parcels in the District are occupied by buildings, streets, utilities, paved or gravel
parking lots or other similar structures and that the sole building on the parcel, not including outbuildings, is
structurally substandard to a degree requiring substantial renovation or clearance.
2. Finding that the proposed development, in the opinion of the City Council, would not reasonably be expected
to occur solely through private investment within the reasonablyforeseeablefuture and that the increased market
value of the site that could reasonably be expected to occur without the use of tax increment financing would be
less than the increase in the market value estimated to result from the proposed development after subtracting
the present value of the projected tax increments for the maximum duration of the District permitted by the TIF
Plan.
Theproposed development, in the opinion of the City, would not reasonably be expected to occur solely through
private investment within the reasonably foreseeable future: This finding is supported by the fact that the
redevelopment proposed in the TIF Plan meets the City's objectives for redevelopment. Due to the high cost of
redevelopment on the parcel currently occupied by a single substandard building, the incompatible land uses at
close proximity, and the cost of financing the proposed demolition and land purchase, this proj ect is feasible only
through assistance, in part, from tax increment financing.
The increased market value of the site that could reasonably be expected to occur without the use of tax
increment financing would be less than the increase in market value estimated to result from the proposed
development after subtracting the present value of the projected tax increments for the maximum duration of the
District permitted by the TIF Plan: This finding is justified on the grounds that the cost of site and public
improvements add to the total redevelopment cost. Historically, site and public improvements costs in this area
have made redevelopment infeasible without tax increment assistance. This site has been marketed for
approximately ten years without success. The City reasonably determines that no other redevelopment of similar
scope is anticipated on this site without substantially similar assistance being provided to the development.
Therefore, the City concludes as follows:
a. The City's estimate of the amount by which the market value of the entire District will increase
without the use of tax increment financing is $0.
b. If the proposed development occurs, the total increase in market value will be $1,108,900.
C. The present value of tax increments from the District for the maximum duration of the district
permitted by the TIF Plan is estimated to be $724,419.
d. Even if some development other than the proposed development were to occur, the Council finds that
no alternative would occur that would produce a market value increase greater than $384,481 (the
amount in clause b less the amount in clause c) without tax increment assistance.
Appendix
G-1
3. Finding that the TIFPIan for the District conforms to the general plan for the development or redevelopment
of the municipality as a whole.
The City Council has reviewed the TIF Plan and finds that the TIF Plan conforms to the general development
plan of the City pending approval by the City Planning Commission.
4. Finding that the TIFPIan for the District will afford maximum opportunity, consistent with the sound needs
of the City as a whole, for the development or redevelopment of Development District No. 4 by private
enterprise.
The project to be assisted by the District will result in increased employment in the City and the State of
Minnesota, the renovation of substandard properties, increased tax base of the State and add a high quality
development to the City.
But -For Analysis
Current Market Value 456,100
New Market Value - Estimate 1,565,000
Difference 1,108,900
Present Value of Tax Increment 724,419
Difference 384,481
Value Likely to Occur Without TIF is Less Than: 384,481
(As Modified December 8, 2020)
But -For Analysis
Current Market Value 636,100
New Market Value - Estimate 5,705,000
Difference 5,068,900
Present Value of Tax Increment 2,548,915
Difference 2,519,985
Value Likely to Occur Without TIF is Less Than: 2,519,985
Appendix
G-2
TIF DEVELOPMENT AGREEMENT
BY AND BETWEEN
THE CITY OF HUTCHINSON, MINNESOTA
AND
HUTCHINSON — THE LANDING, LLC
This document drafted by: TAFT STETTINIUS & HOLLISTER LLP
(MTM)
Professional Association
2200 IDS Center
80 South 8th Street
Minneapolis, Minnesota 55402
174244145vl
TABLE OF CONTENTS
Page
ARTICLEI DEFINITIONS.................................................................................................
2
2
Section1.1
Definitions...........................................................................................
ARTICLE II REPRESENTATIONS AND WARRANTIES ...............................................
4
Section 2.1
Representations and Warranties of the City .........................................
4
Section 2.2
Representations and Warranties of the Developer ...............................
4
ARTICLE III UNDERTAKINGS BY DEVELOPER AND CITY .......................................
Section 3.1
Project and Legal and Administrative Expenses ............................
6
Section 3.2
Limitations on Undertaking of the City ...............................................
6
Section 3.3
Reimbursement: TIF Note...................................................................
6
Section 3.4
Compliance with Low and Moderate Income Requirements .............. 7
Section 3.5
Real Property Taxes.........................................................................
Section 3.6
Prohibition Against Transfer of Project and Assignment of
Agreement............................................................................................
8
ARTICLEIV EVENTS
OF DEFAULT...............................................................................
10
10
Section 4.1
Events of Default Defined............................................................
I....
Section 4.2
Remedies on Default..........................................................................
10
11
Section 4.3
No Remedy Exclusive.......................................................................
11
Section 4.4
No Implied Waiver............................................................................
11
Section 4.5
Agreement to Pay Attorney's Fees and Expenses ..............................
Section 4.6
Indemnification of City......................................................................
11
ARTICLE V DEVELOPER'S OPTION TO TERMINATE AGREEMENT
....................
Section 5.1
The Developer's Option to Terminate .............................................
13
Section 5.2
Action to Terminate...........................................................................
13
13
Section 5.3
Effect of Termination.........................................................................
ARTICLE VI ADDITIONAL PROVISIONS......................................................................
14
14
Section 6.1
Restrictions on Use............................................................................
14
Section 6.2
Conflicts of Interest...........................................................................
14
Section 6.3
Titles of Articles and Sections...........................................................
Section 6.4
Notices and Demands........................................................................
14
15
Section 6.5
Counterparts.......................................................................................
15
Section 6.6
Law Governing..................................................................................
15
Section6.7
Expiration...........................................................................................
15
Section 6.8
Provisions Surviving Rescission or Expiration .................................
Section 6.9
Assignability of TIF Note..................................................................
15
EXHIBIT A
DESCRIPTION OF DEVELOPMENT PROPERTY .................................
A-1
EXHIBITB
FORM OF TIF NOTE.................................................................................
C-1
EXHIBIT C
COMPLIANCE CERTIFICATE.................................................................
D-1
174244145v1
TIF DEVELOPMENT AGREEMENT
THIS AGREEMENT, made as of the _ day of , 2025, by and between the City
of Hutchinson, Minnesota (the "City"), a municipal corporation existing under the laws of the State
of Minnesota and Hutchinson — The Landing, LLC, a Minnesota limited liability company (the
"Developer"),
WITNESSETH:
WHEREAS, pursuant to Minnesota Statutes, Section 469.124 through 469.133, as
amended, the City has heretofore established Municipal Development District No. 4 (the
"Development District") and has adopted a development program therefor (the "Development
Program"); and
WHEREAS, pursuant to the provisions of Minnesota Statutes, Section 469.174 through
469.1794, as amended (hereinafter, the "Tax Increment Act"), the City is establishing as of the
date hereof, within the Development District, Tax Increment Financing District No. 4-24 (the "Tax
Increment District") and has adopted a tax increment financing plan therefor (the "Tax Increment
Plan") which provides for the use of tax increment financing in connection with certain
development within the Development District; and
WHEREAS, in order to achieve the objectives of the Development Program and
particularly to make the land in the Development District available for development by private
enterprise in conformance with the Development Program, the City has determined to assist the
Developer with the financing of certain costs of a Project (as hereinafter defined) to be constructed
within the Tax Increment District as more particularly set forth in this Agreement; and
WHEREAS, the City believes that the development and construction of the Project, and
fulfillment of this Agreement are vital and are in the best interests of the City, the health, safety,
morals and welfare of residents of the City, and in accordance with the public purpose and
provisions of the applicable state and local laws and requirements under which the Project has
been undertaken and is being assisted; and
WHEREAS, the requirements of the Business Subsidy Law, Minnesota Statutes, Section
116J.993 through 116J.995, do not apply to this Agreement pursuant to an exemption for housing.
NOW, THEREFORE, in consideration of the premises and the mutual obligations of the
parties hereto, each of them does hereby covenant and agree with the other as follows:
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ARTICLE I
DEFINITIONS
l . l Definitions. All capitalized terms used and not otherwise defined herein shall have
the following meanings unless a different meaning clearly appears from the context:
Agreement means this TIF Development Agreement, as the same may be from time to time
modified, amended or supplemented;
Business Day means any day except a Saturday, Sunday or a legal holiday or a day on
which banking institutions in the City are authorized by law or executive order to close;
City means the City of Hutchinson, Minnesota;
Compliance Certificate means the Compliance Certificate in substantially the form
attached hereto as Exhibit D;
Cogpty means McLeod County, Minnesota;
Developer means Hutchinson — The Landing, LLC, a Minnesota limited liability company,
its successors and assigns;
Development District means Municipal Development District No. 4 heretofore established,
including the real property described in the Development Program;
Development Program means the development program approved in connection with the
Development District, as modified;
Development Property means the real property described in Exhibit A attached to this
Agreement;
Event of Default means any of the events described in Section 4.1 hereof,
Legal and Administrative Expenses means the actual out of pocket fees and expenses
incurred by the City in connection with the review and analysis of the development proposed under
this Agreement with the adoption and administration of the Tax Increment Financing Plan and
establishment of the Tax Increment District, the preparation of this Agreement and the issuance of
the TIF Note including, but not limited to, reasonable attorney and municipal advisor fees and
expenses;
Note Payment Date means August 1, 2027, and each February 1 and August 1 of each year
thereafter to and including February 1, 2053; provided, that if any such Note Payment Date should
not be a Business Day, the Note Payment Date shall be the next succeeding Business Day;
Prime Rate means the rate of interest from time to time publicly announced by U.S. Bank
National Association in Minneapolis, Minnesota, as its "reference rate" or any successor rate,
which rate shall change as and when that prime rate or successor rate changes;
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Project means the construction of an apartment complex containing approximately eight -
one (81) units, including necessary soil corrections on the Development Property;
Public Improvements means (i) the relocation of the Nuverra fiber optic duct bank and the
existing sanitary sewer line on the Development Property and (ii) the construction of a stormwater
retention pond and improvements to Glen Street to serve the Development Property;
State means the State of Minnesota;
Tax Increment Act means Minnesota Statutes, Sections 469.174 through 469.1794, as
amended;
Tax Increment District means Tax Increment Financing District No. 4-24 located within
the Development District, a description of which is set forth in the Tax Increment Financing Plan,
which was qualified as a housing district under the Tax Increment Act;
Tax Increment Financing Plan means the tax increment financing plan approved for the
Tax Increment District by the City Council on September 9, 2025, and any future amendments
thereto;
Tax Increments means 90% of the tax increments derived from the Development Property
which have been received by the City in accordance with the provisions of Minnesota Statutes,
Section 469.177;
Termination Date means the earlier of (i) February 1, 2053, (ii) the date the TIF Note,
including applicable interest, is paid as provided in the TIF Note, (iii) the date on which the Tax
Increment District expires or is otherwise terminated, or (iv) the date this Agreement is terminated
or rescinded in accordance with its terms; and
TIF Note means the Tax Increment Revenue Note (Landing Project) to be executed by the
City and delivered to the Developer pursuant to Article III hereof, a form of which is attached
hereto as Exhibit C; and
Unavoidable Delays means delays, outside the control of the party claiming its occurrence,
which are the direct result of strikes, other labor troubles, unusually severe or prolonged bad
weather, acts of God, fire or other casualty to the Project, litigation commenced by third parties
which, by injunction or other similar judicial action or by the exercise of reasonable discretion,
directly results in delays, or acts of any federal, state or local governmental unit (other than the
City) which directly result in delays.
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ARTICLE 2
REPRESENTATIONS AND WARRANTIES
2.1 Representations and Warranties of the City. The City makes the following
representations and warranties:
(1) The City is a municipal corporation and has the power to enter into this Agreement
and carry out its obligations hereunder.
(2) Based on the representation of the Developer set forth in Section 3.4 below, the Tax
Increment District is a "housing district" within the meaning of Minnesota Statutes,
Section 469.174, Subdivision 11, and was created, adopted and approved in accordance with the
terms of the Tax Increment Act.
(3) The development contemplated by this Agreement is in conformance with the
development objectives set forth in the Development Program.
(4) To finance certain costs within the Tax Increment District, the City proposes,
subject to the further provisions of this Agreement, to apply Tax Increments to reimburse the
Developer for a portion of the costs of the construction of the Project as further provided in this
Agreement.
(5) The City makes no representation or warranty, either expressed or implied, as to
the Development Property or its condition or the soil conditions thereon, or that the Development
Property shall be suitable for the Developer's purposes or needs.
(6) The City shall construct the Public Improvements, and pay the costs thereof.
2.2 Representations and Warranties of the Developer. The Developer makes the
following representations and warranties:
(1) The Developer is a Minnesota limited liability company and has the power and
authority to enter into this Agreement and to perform its obligations hereunder, and doing so will
not violate its articles of organization, member control agreement or operating agreement, if any,
or the laws of the State and by proper action has authorized the execution and delivery of this
Agreement.
(2) The Developer shall cause the Project to be constructed in accordance with the
terms of this Agreement, the Development Program, and all local, state and federal laws and
regulations (including, but not limited to, environmental, zoning, energy conservation, building
code and public health laws and regulations).
(3) The construction of the Project would not be undertaken by the Developer, and in
the opinion of the Developer would not be economically feasible within the reasonably foreseeable
future, without the assistance and benefit to the Developer provided for in this Agreement.
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(4) Neither the execution and delivery of this Agreement, the consummation of the
transactions contemplated hereby, nor the fulfillment of or compliance with the terms and
conditions of this Agreement is prevented, limited by or conflicts with or results in a breach of,
the terms, conditions or provision of any contractual restriction, evidence of indebtedness,
agreement or instrument of whatever nature to which the Developer is now a party or by which it
is bound, or constitutes a default under any of the foregoing.
(5) The Developer will cooperate fully with the City with respect to any litigation
commenced with respect to the Project.
(6) The Developer will cooperate fully with the City in resolution of any traffic,
parking, trash removal or public safety problems which may arise in connection with the
construction and operation of the Project.
(7) Construction of the Project commence September 10, 2025, and subject to
Unavoidable Delays, shall be substantially completed by September 1, 2027.
(8) The Developer will obtain, or cause to be obtained, in a timely manner, all required
permits, licenses and approvals, and will meet, in a timely manner, all requirements of all
applicable local, state, and federal laws and regulations which must be obtained or met before the
Project may be lawfully constructed.
(9) The Developer acknowledges that Tax Increment projections contained in the Tax
Increment Financing Plan are estimates only and the Developer acknowledges that it shall place
no reliance on the amount of projected Tax Increments and the sufficiency of such Tax Increments
to reimburse the Developer for a portion of the costs of the construction of the Project as provided
in Article 111.
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ARTICLE 3
UNDERTAKINGS BY DEVELOPER AND CITY
11 1 Project and Legal and Administrative Expenses.
(1) The costs of the Project shall be paid by the Developer. The City shall reimburse
the Developer for the lesser of (a) $1,287,000, or (b) the actual costs of the construction of the
Project incurred and paid by the Developer (the "Reimbursement Amount"), as further provided
in Section 3.3 hereof. Of the total Reimbursement Amount, the City shall reimburse the Developer
for up to (i) $332,000 in costs for the soil corrections on the Development Property and (ii)
$955,000 for other construction costs of the Project.
(2) The Developer has deposited with the City the sum of $15,000 to reimburse
the City for its actual out of pocket Legal and Administrative Expenses and any excess will be
returned to the Developer. The Legal and Administrative Expenses shall by paid by the City from
the Developer's deposit. If the City determines that the deposit is inadequate, the City shall notify
the Developer of the amount necessary to increase the deposit and the Developer shall provide
such additional funds within 10 days of notification by the City that the deposit is inadequate.
3.2 Limitations on Undertaking of the City. Notwithstanding the provisions of Section
3. 1, the City shall have no obligation to the Developer under this Agreement to reimburse the
Developer for the costs identified in Section 3.1(1), if the City, at the time or times such payment
is to be made, is entitled under Section 4.2 to exercise any of the remedies set forth therein as a
result of an Event of Default which has not been cured.
3.3 Reimbursement: TIF Note. The City shall reimburse the payments made by the
Developer under Section 3.1(1) for costs of the construction of the Project through the issuance of
the City's TIF Note in substantially the form attached to this Agreement as Exhibit C, subject to
the following conditions:
(1) The TIF Note shall be dated, issued and delivered when the Developer has (i)
demonstrated in writing to the reasonable satisfaction of the City that the construction of the
Project is complete and that the Developer has incurred and paid the costs of the construction of
the Project, as described in Section 3.1(1), and (ii) shall have submitted paid invoices for the costs
of construction of the Project in an amount not less than the Reimbursement Amount.
(2) The unpaid principal of the TIF Note shall bear simple non -compounding interest
from the date of issuance of the TIF Note, at the rate of 6.00%. Interest shall be computed on the
basis of a 360-day year consisting of twelve (12) 30-day months.
(3) The principal amount of the TIF Note and the interest thereon shall be payable
solely from the Tax Increments.
(4) On each Note Payment Date and subject to the foregoing sentence and the
provisions of the TIF Note, the City shall pay, against the principal and interest outstanding on the
TIF Note, the Tax Increments received by the City during the preceding six (6) months. All such
payments shall be applied first to accrued interest and then to reduce the principal of the TIF Note.
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(5) The TIF Note shall be a special and limited obligation of the City and not a general
obligation of the City, and only Tax Increments shall be used to pay the principal and interest on
the TIF Note. If, on any TIF Note Payment Date, the Tax Increments for the payment of the
accrued and unpaid interest on the TIF Note are insufficient for such purposes, the difference shall
be carried forward, without interest accruing thereon, and shall be paid if and to the extent that on
a future TIF Note Payment Date there are Tax Increments in excess of the amounts needed to pay
the accrued interest then due on the TIF Note.
(6) The City's obligation to make payments on the TIF Note on any Note Payment Date
or any date thereafter shall be conditioned upon the requirements that: (A) there shall not at that
time be an Event of Default that has occurred and is continuing under this Agreement and (B) this
Agreement shall not have been rescinded pursuant to Section 4.2.
(7) The TIF Note shall be governed by and payable pursuant to the additional terms
thereof, as set forth in Exhibit C. In the event of any conflict between the terms of the TIF Note
and the terms of this Section 3.3, the terms of the TIF Note shall govern. The issuance of the TIF
Note pursuant and subject to the terms of this Agreement, and the taking by the City of such
additional actions as bond counsel for the TIF Note may require in connection therewith, are
hereby authorized and approved by the City.
3.4 Compliance with Low and Moderate Income Requirements.
(1) The City and the Developer understand and agree that the Tax Increment District
will constitute a "housing district" under Section 469.174, Subd. 11 of the Tax Increment Act.
Accordingly, in compliance with Section 469.1761, Subd. 3 of the Tax Increment Act, the
Developer agrees that the Project must satisfy, or be treated as satisfying, the income requirements
for a qualified residential rental project as defined in Section 142(d) of the Internal Revenue Code.
The parties further agree that no more than 20% of the square footage of the Project may consist
of commercial, retail, or other nonresidential uses. The Developer must meet the above
requirements as follows:
(a) At least 20% of the residential units in the Project must be occupied or
available for occupancy by persons whose incomes do not exceed 50% of the County
median income; and
(b) The limits described in clause (A) must be satisfied through the Termination
Date. Income for occupants of units described in clause (A) shall be adjusted for family
size in accordance with Section 142(d) of the Internal Revenue Code and related
regulations.
(2) On or before each January 15, commencing on January 15, 2028, the Developer or
an agent of the Developer must deliver or cause to be delivered to the City a Compliance Certificate
executed by the Developer covering the preceding six (6) months together with written evidence
satisfactory to the City of compliance with the covenants in this Section. This evidence must
include a statement of the household income of each qualifying renter, a written determination that
each qualifying renter's household income falls within the qualifying limits of this Section (and
Section 142(d) of the Internal Revenue Code), and certification that the income documentation is
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correct and accurate (and that the determination of qualification was made in compliance with
Section 142(d) of the Internal Revenue Code). The City may review, upon request, all
documentation supporting the Developer submissions and statements. In determining compliance
with this Section, the Developer must use the County median incomes for the year in which the
payment is due on the TIF Note, as promulgated by the Minnesota Housing Finance Agency based
on the area median incomes established by the United States Department of Housing and Urban
Development.
3.5 Real Property Taxes. Prior to the Termination Date, the Developer shall pay all
real property taxes due and payable with respect to all and any parts of the Development Property
acquired and owned by it until the Developer's obligations have been assumed by any other person
pursuant to the provisions of this Agreement.
The Developer agrees that, so long as it owns all or any portion of the Development
Property, prior to the Termination Date:
(1) It will not seek administrative review or judicial review of the applicability of any
tax statute relating to the ad valorem properly taxation of real property contained on the
Development Property determined by any tax official to be applicable to the Project or the
Developer or raise the inapplicability of any such tax statute as a defense in any proceedings with
respect to the Development Property, including delinquent tax proceedings; provided, however,
"tax statute" does not include any local ordinance or resolution levying a tax;
(2) It will not seek administrative review or judicial review of the constitutionality of
any tax statute relating to the taxation of real property contained on the Development Property
determined by any tax official to be applicable to the Project or the Developer or raise the
unconstitutionality of any such tax statute as a defense in any proceedings with respect to the
Development Property, including delinquent tax proceedings; provided, however, "tax statute"
does not include any local ordinance or resolution levying a tax;
(3) It will not seek any tax deferral or abatement, either presently or prospectively
authorized under Minnesota Statutes, Section 469.1813, or any other State or federal law, of the
ad valorem property taxation of the Development Property between the date of execution of this
Agreement and the Termination Date; and
(4) It will not seek a reduction in the market value as determined by the County
Assessor of the Project or other facilities, if any, that it constructs on the Development Property,
pursuant to the provisions of this Agreement, for so long as the TIF Note remains outstanding.
3.6 Conditions for Transfer of Project and Assignment of Agreement. The Developer
represents and agrees that prior to the Termination Date the Developer shall not transfer the Project
or any part thereof or any interest therein, without the prior written approval of the City. The City
shall approve such transfer if the following conditions are met to the City's satisfaction:
(1) Any proposed transferee shall have the qualifications and financial responsibility,
in the reasonable judgment of the City, necessary and adequate to fulfill the obligations undertaken
in this Agreement by the Developer.
174244145v1
(2) Any proposed transferee, by instrument in writing satisfactory to the City shall, for
itself and its successors and assigns, and expressly for the benefit of the City, have expressly
assumed all of the obligations of the Developer under this Agreement and agreed to be subject to
all the conditions and restrictions to which the Developer is subject.
(3) All instruments and other legal documents involved in effecting the transfer of any
interest in this Agreement or the Project are submitted to the City for review and prior written
approval.
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ARTICLE 4
EVENTS OF DEFAULT
4.1 Events of Default Defined. The following shall be "Events of Default" under this
Agreement and the term "Event of Default" shall mean whenever it is used in this Agreement any
one or more of the following events:
(1) Failure by the Developer to timely pay any ad valorem real property taxes and
special assessments levied against the Development Property and all public utility or other City
payments due and owing with respect to the Development Property.
(2) Failure by the Developer to cause the construction of the Project to be completed
pursuant to the terms, conditions and limitations of this Agreement.
(3) Failure of the Developer to observe or perform any other covenant, condition,
obligation or agreement on its part to be observed or performed under this Agreement.
(4) The holder of any mortgage on the Development Property or any improvements
thereon, or any portion thereof, commences foreclosure proceedings as a result of any default under
the applicable mortgage documents.
(5) If the Developer shall:
(a) file any petition in bankruptcy or for any reorganization, arrangement,
composition, readjustment, liquidation, dissolution, or similar relief under the United
States Bankruptcy Act of 1978, as amended or under any similar federal or state law; or
(b) make an assignment for the benefit of its creditors; or
(c) admit in writing its inability to pay its debts generally as they become due;
or
(d) be adjudicated as bankrupt or insolvent; or if a petition or answer proposing
the adjudication of the Developer as bankrupt or its reorganization under any present or
future federal bankruptcy act or any similar federal or state law shall be filed in any court
and such petition or answer shall not be discharged or denied within sixty (60) days after
the filing thereof, or a receiver, liquidator or trustee of the Developer, or of the Project, or
part thereof, shall be appointed in any proceeding brought against the Developer, and shall
not be discharged within sixty (60) days after such appointment, or if the Developer, shall
consent to or acquiesce in such appointment.
4.2 Remedies on Default. Whenever any Event of Default referred to in Section 4.1
occurs and is continuing, the City, as specified below, may take any one or more of the following
actions after the giving of thirty (30) days' written notice to the Developer, but only if the Event of
Default has not been cured within said thirty (30) days:
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(1) The City may suspend its performance under this Agreement and the TIF Note until
it receives assurances from the Developer, deemed adequate by the City, that the Developer will
cure its default and continue its performance under this Agreement.
(2) The City may cancel and rescind the Agreement and the TIF Note.
(3) The City may take any action, including legal or administrative action, in law or
equity, which may appear necessary or desirable to enforce performance and observance of any
obligation, agreement, or covenant of the Developer under this Agreement.
4.3 No Remedy Exclusive. No remedy herein conferred upon or reserved to the City
is intended to be exclusive of any other available remedy or remedies, but each and every such
remedy shall be cumulative and shall be in addition to every other remedy given under this
Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to
exercise any right or power accruing upon any default shall impair any such right or power or shall
be construed to be a waiver thereof, but any such right and power may be exercised from time to
time and as often as may be deemed expedient.
4.4 No Implied Waiver. In the event any agreement contained in this Agreement
should be breached by any party and thereafter waived by any other party, such waiver shall be
limited to the particular breach so waived and shall not be deemed to waive any other concurrent,
previous or subsequent breach hereunder.
4.5 Agreement to Pay Attorney's Fees and Expenses. Whenever any Event of Default
occurs and the City shall employ attorneys or incur other expenses for the collection of payments
due or to become due or for the enforcement or performance or observance of any obligation or
agreement on the part of the Developer herein contained, the Developer agrees that it shall, within
ten (10) days after written demand therefor, pay to the City the reasonable fees of such attorneys
and such other expenses so incurred by the City.
4.6 Indemnification of City.
(1) The Developer (a) releases the City and its governing body members, officers,
agents, including the independent contractors, consultants and legal counsel, servants and
employees (collectively, the "Indemnified Parties") from, (b) covenants and agrees that the
Indemnified Parties shall not be liable for, and (c) agrees to indemnify and hold harmless the
Indemnified Parties against, any claim, cause of action, suit or liability for loss or damage to
property or any injury to or death of any person occurring at or about or resulting from any defect
in the Project or on the Development Property.
(2) Except for any willful misrepresentation or any willful or wanton misconduct of
the Indemnified Parties, the Developer agrees to protect and defend the Indemnified Parties, now
and forever, and further agrees to hold the aforesaid harmless from any claim, demand, suit, action
or other proceeding whatsoever by any person or entity whatsoever arising or purportedly arising
from the actions or inactions of the Developer (or if other persons acting on its behalf or under its
direction or control) under this Agreement, or the transactions contemplated hereby or the
acquisition, construction, installation, ownership, and operation of the Project; provided, that this
indemnification shall not apply to the warranties made or obligations undertaken by the City in
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this Agreement or to any actions undertaken by the City which are not contemplated by this
Agreement but shall, in any event and without regard to any fault on the part of the City, apply to
any pecuniary loss or penalty (including interest thereon from the date the loss is incurred or
penalty is paid by the City at a rate equal to the Prime Rate) as a result of the Developer operating
the Project so that the Tax Increment District does not qualify or ceases to qualify as a "housing
district" under Section 469.174, Subdivision 11, of the Act or to violate limitations as to the use of
Tax Increments as set forth in Section 469.176, Subdivision 4d.
(3) All covenants, stipulations, promises, agreements and obligations of the City
contained herein shall be deemed to be the covenants, stipulations, promises, agreements and
obligations of the City and not of any governing body member, officer, agent, servant or employee
of the City.
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ARTICLE 5
DEVELOPER'S OPTION TO TERMINATE AGREEMENT
5.1 The Developer's Option to Terminate. This Agreement may be terminated by the
Developer, if (i) the Developer is in compliance with all material terms of this Agreement and no
Event of Default has occurred; and (ii) the City fails to comply with any material term of this
Agreement, and, after written notice by the Developer of such failure, the City has failed to cure
such noncompliance within ninety (90) days of receipt of such notice, or, if such noncompliance
cannot reasonably be cured by the City within ninety (90) days, of receipt of such notice, the City
has not provided assurances, reasonably satisfactory to the Developer, that such noncompliance
will be cured as soon as reasonably possible.
5.2 Action to Terminate. Termination of this Agreement pursuant to Section 5.1 must
be accomplished by written notification by the Developer to the City within sixty (60) days after
the date when such option to terminate may first be exercised. A failure by the Developer to
terminate this Agreement within such period constitutes a waiver by the Developer of its rights to
terminate this Agreement due to such occurrence or event.
5.3 Effect of Termination. If this Agreement is terminated pursuant to this Article V,
this Agreement shall be from such date forward null and void and of no further effect; provided,
however, the termination of this Agreement shall not affect the rights of either party to institute
any action, claim or demand for damages suffered as a result of breach or default of the terms of
this Agreement by the other party, or to recover amounts which had accrued and become due and
payable as of the date of such termination. Upon termination of this Agreement pursuant to this
Article V, the Developer shall be free to proceed with the Project at its own expense and without
regard to the provisions of this Agreement; provided, however, that the City shall have no further
obligations to the Developer with respect to reimbursement of the expenses set forth in Section
3.3, or to make any further payments on the TIF Note.
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ARTICLE 6
ADDITIONAL PROVISIONS
6.1 Restrictions on Use. Until the Termination Date, the Developer agrees for itself,
its successors and assigns and every successor in interest to the Development Property, or any part
thereof, that the Developer and such successors and assigns shall operate, or cause to be operated,
the Project as a multi -family rental housing facility and shall devote the Development Property to,
and in accordance with, the uses specified in this Agreement.
6.2 Conflicts of Interest. No member of the governing body or other official of the City
shall have any financial interest, direct or indirect, in this Agreement, the Development Property
or the Project, or any contract, agreement or other transaction contemplated to occur or be
undertaken thereunder or with respect thereto, nor shall any such member of the governing body
or other official participate in any decision relating to the Agreement which affects his or her
personal interests or the interests of any corporation, partnership or association in which he or she
is directly or indirectly interested. No member, official or employee of the City shall be personally
liable to the City in the event of any default or breach by the Developer or successor or on any
obligations under the terms of this Agreement.
6.3 Titles of Articles and Sections. Any titles of the several parts, articles and sections
of the Agreement are inserted for convenience of reference only and shall be disregarded in
construing or interpreting any of its provisions.
6.4 Notices and Demands. Except as otherwise expressly provided in this Agreement,
a notice, demand or other communication under this Agreement by any party to any other shall be
sufficiently given or delivered if it is dispatched by registered or certified mail, postage prepaid,
return receipt requested, or delivered personally, and
(1) in the case of the Developer is addressed to or delivered personally to:
Hutchinson — The Landing, LLC
Attention: Andrew Martin
3345 West St. Germain Street
St. Cloud, MN 56301
(2) in the case of the City is addressed to or delivered personally to the City at:
City of Hutchinson, Minnesota
Attention: City Administrator
111 Hassan St. SE
Hutchinson, MN 55350
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with a copy to:
Taft Stettinius & Hollister LLP
Attention: Mary Ippel
2200 IDS Center
80 South 8th Street
Minneapolis, MN 55402
or at such other address with respect to any such party as that party may, from time to time,
designate in writing and forward to the other, as provided in this Section.
6.5 Counterparts. This Agreement may be executed in any number of counterparts,
each of which shall constitute one and the same instrument.
6.6 Law Governing. This Agreement will be governed and construed in accordance
with the laws of the State.
6.7 Expiration. This Agreement shall expire on the Termination Date.
6.8 Provisions Surviving Rescission or Expiration. Sections 4.5 and 4.6 shall survive
any rescission, termination or expiration of this Agreement with respect to or arising out of any
event, occurrence or circumstance existing prior to the date thereof.
6.9 Assignment of TIF Note. The TIF Note may only be assigned pursuant to the terms
of the TIF Note and with the written consent of the City, which shall not be unreasonably withheld.
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IN WITNESS WHEREOF, the City has caused this Agreement to be duly executed in its
name and on its behalf and the Developer has caused this Agreement to be duly executed on its
behalf, on or as of the date first above written.
CITY OF HUTCHINSON, MINNESOTA
By
Its Mayor
By
Its Administrator
This is a signature page to the TIF Development Agreement by and between the City of
Hutchinson, Minnesota and Hutchinson — The Landing, LLC.
S-1
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HUTCHINSON — THE LANDING, LLC
By
Its
This is a signature page to the TIF Development Agreement by and between the City of
Hutchinson, Minnesota and Hutchinson — The Landing, LLC.
S-2
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EXHIBIT A
DESCRIPTION OF DEVELOPMENT PROPERTY
Property located in the City of Hutchinson, McLeod County, Minnesota with the following
parcel identification number:
23-056-2880
23-056-2890
23-056-2900
A-1
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No. R-1
EXHIBIT B
FORM OF TIF NOTE
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF MCLEOD
CITY OF HUTCHINSON
TAX INCREMENT REVENUE NOTE
(LANDING PROJECT)
The City of Hutchinson, Minnesota (the "City"), herebyacknowledges itself to be indebted
and, for value received, hereby promises to pay the amounts hereinafter described (the "Payment
Amounts") to Hutchinson The Landing, LLC (the "Developer") or its registered assigns (the
"Registered Owner"), but only in the manner, at the times, from the sources of revenue, and to the
extent hereinafter provided.
The principal amount of this Note shall equal from time to time the principal amount stated
above, as reduced to the extent that such principal installments shall have been paid in whole or in
part pursuant to the terms hereof, provided that the sum of the principal amount listed above shall
in no event exceed $1,287,000 as provided in that certain TIF Development Agreement, dated as
of , 2025, as the same may be amended from time to time (the "TIF Development
Agreement"), by and between the City and the Developer. The unpaid principal amount hereof
shall bear simple non -compounding interest from the date of issuance at 6.00% per annum. Interest
shall be computed on the basis of a 360-day year consisting of twelve (12) 30-day months.
The amounts due under this Note shall be payable on August 1, 2027, and on each February
1 and August 1 thereafter to and including February 1, 2053, or, if the first should not be a Business
Day (as defined in the TIF Development Agreement), the next succeeding Business Day (the
"Payment Dates"). On each Payment Date the City shall pay by check or draft mailed to the person
that was the Registered Owner of this Note at the close of the last business day of the City
preceding such Payment Date an amount equal to the Tax Increments (hereinafter defined)
received by the City during the six-month period preceding such Payment Date. All payments
made by the City under this Note shall first be applied to accrued interest and then to principal..
This Note is prepayable by the City, in whole or in part, on any date.
The Payment Amounts due hereon shall be payable solely from 90% of tax increments (the
"Tax Increments") from the Development Property (as defined in the TIF Development
Agreement) within the City's Tax Increment Financing District No. 4-24 (the "Tax Increment
District") within its Municipal Development District No. 4 which are paid to the City and which
the City is entitled to retain pursuant to the provisions of Minnesota Statutes, Sections 469.174
through 469.1794, as the same may be amended or supplemented from time to time (the "Tax
M.
174244145v1
Increment Act"). This Note shall terminate and be of no further force and effect following the last
Payment Date defined above, on any date upon which the City shall have terminated the TIF
Agreement under Section 4.2(2) thereof, the Developer shall have terminated the TIF Agreement
under Article V thereof, the date the Tax Increment District is terminated, or on the date that all
principal payable hereunder shall have been paid in full, whichever occurs earliest.
The City makes no representation or covenant, expressed or implied, that the Tax
Increments will be sufficient to pay, in whole or in part, the amounts which are or may become
due and payable hereunder.
The City's payment obligations hereunder shall be further conditioned on the fact that no
Event of Default under the TIF Development Agreement shall have occurred and be continuing at
the time payment is otherwise due hereunder, but such unpaid amounts shall become payable if
said Event of Default shall thereafter have been cured; and, further, if pursuant to the occurrence
of an Event of Default under the TIF Development Agreement the City elects to cancel and rescind
the TIF Development Agreement, the City shall have no further debt or obligation under this Note
whatsoever. Reference is hereby made to all of the provisions of the TIF Development Agreement,
including without limitation Section 3.3 thereof, for a fuller statement of the rights and obligations
of the City to pay the principal of this Note, and said provisions are hereby incorporated into this
Note as though set out in full herein.
This Note is a special, limited revenue obligation and not a general obligation of the City
and is payable by the City only from the sources and subject to the qualifications stated or
referenced herein. This Note is not a general obligation of the City, and neither the full faith and
credit nor the taxing powers of the City are pledged to the payment of the principal of this Note
and no property or other asset of the City, save and except the above -referenced Tax Increments,
is or shall be a source of payment of the City's obligations hereunder.
This Note is issued by the City in aid of financing a project pursuant to and in full
conformity with the Constitution and laws of the State of Minnesota, including the Tax Increment
Act.
This Note may be assigned only with the consent of the City. which consent shall not be
unreasonably withheld. In order to assign the Note, the assignee shall surrender the same to the
City either in exchange for a new fully registered note or for transfer of this Note on the registration
records for the Note maintained by the City. Each permitted assignee shall take this Note subject
to the foregoing conditions and subject to all provisions stated or referenced herein.
IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions, and things required
by the Constitution and laws of the State of Minnesota to be done, to have happened, and to be
performed precedent to and in the issuance of this Note have been done, have happened, and have
been performed in regular and due form, time, and manner as required by law; and that this Note,
together with all other indebtedness of the City outstanding on the date hereof and on the date of
its actual issuance and delivery, does not cause the indebtedness of the City to exceed any
constitutional or statutory limitation thereon.
174244145vl
IN WITNESS WHEREOF, City of Hutchinson, Minnesota, by its City Council, has caused
this Note to be executed by the manual signatures of its Mayor and Administrator and has caused
this Note to be dated as of , 20
Administrator
Mayor
DO NOT EXECUTE UNTIL PAID INVOICES, A SETTLEMENT STATEMENT OR
OTHER EVIDENCE OF PAYMENT FOR THE CONSTRUCTION OF THE PROJECT
ARE GIVEN TO THE CITY - REFER TO SECTION 3.3(1).
C
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CERTIFICATION OF REGISTRATION
It is hereby certified that the foregoing Note was registered in the name of Hutchinson —
The Landing, LLC, and that, at the request of the Registered Owner of this Note, the undersigned
has this day registered the Note in the name of such Registered Owner, as indicated in the
registration blank below, on the books kept by the undersigned for such purposes.
NAME AND ADDRESS OF DATE OF SIGNATURE OF
REGISTERED OWNER REGISTRATION ADMINISTRATOR
Hutchinson — The Landing, LLC
Attn: Andrew Martin
3345 W. St. Germain St.
St. Cloud, MN 56301
ME
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EXHIBIT C
COMPLIANCE CERTIFICATE
The undersigned Hutchinson — The Landing, LLC, does hereby certify that as of the date
of this Certificate and for the previous six (6) months prior to the execution of this Certificate not
less than 20% of the residential units in the Hutchinson — The Landing, LLC project located at
[ in Hutchinson, Minnesota (the "Project") were occupied or available for
occupancy by individuals whose income is 50% or less of the McLeod County median income
Dated this day of , 20
HUTCHINSON — THE LANDING, LLC
By
Its
[Attach income verification required by Section 3.41
C-1
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HUTCHINSON — THE LANDING, LLC
By
Its
This is a signature page to the TIF Development Agreement by and between the City of
Hutchinson, Minnesota and Hutchinson — The Landing, LLC.
S-2
174244145vl
EXTRACT OF MINUTES OF A MEETING OF THE
CITY COUNCIL OF THE CITY
OF HUTCHINSON, MINNESOTA
HELD: SEPTEMBER 9, 2025
Pursuant to due call and notice thereof, a regular or special meeting of the City Council of
the City of Hutchinson, McLeod County, Minnesota, was duly called and held at the City Hall, on
September 9, 2025, at 5:30 P.M.
The following members of the Council were present:
and the following were absent:
Member
adoption:
introduced the following resolution and moved its
RESOLUTION NO. 15908
RESOLUTION APPROVING THE ADOPTION OF A MODIFICATION OF A
DEVELOPMENT PROGRAM FOR MUNICIPAL DEVELOPMENT DISTRICT NO. 4;
ESTABLISHING TAX INCREMENT FINANCING DISTRICT NO. 4-24 WITHIN
MUNICIPAL DEVELOPMENT DISTRICT NO. 4; APPROVING THE TAX
INCREMENT FINANCING PLAN THEREFOR; AUTHORIZING AN INTERFUND
LOAN FOR TAX INCREMEMNT FINANCING DISTRICT NO. 4-24;
AUTHORIZING EXECUTION OF A DEVELOPMENT AGREEMENT; APPROVING
THE ELIMINATION OF A PARCEL FROM TAX INCREMNT FINANCING
DISTRCIT NO. 4-16 WITHIN MUNICIPAL DEVELOPMENT DISTRICT NO. 4;
AND AUTHORIZING THE FORGIVENESS OF AN INTERFUND LOAN FOR TAX
INCREMENT FINANCING DISTRICT NO. 4-16
A. WHEREAS, it has been proposed that the City of Hutchinson, Minnesota (the
"City") (1) modify the development program (the "Development Program") for Municipal
Development District No. 4 (the "Development District") (2) establish Tax Increment Financing
District No. 4-24 therein (the "TIF District No. 4-24"); (3) approve and adopt the proposed Tax
Increment Financing Plan therefor under the provisions of Minnesota Statutes, Sections 469.174
to 469.1794, as amended (the "Act"); (4) authorize an Interfund Loan (hereinafter defined) for the
TIF District No. 4-24; (5) authorize the execution of a development agreement; (6) approve the
elimination of a parcel from Tax Increment Financing District No. 4-16 ("TIF District No. 4-16")
located within the Development District, which is proposed to be included in the TIF District No.
4-24; and (7) forgive the outstanding balance of an Interfund Loan for TIF District No. 4-16.
B. WHEREAS, the City Council has investigated the facts and has caused to be
prepared a Modification to the Development Program for the Development District (the
"Development Program Modification") and has caused to be prepared a proposed tax increment
financing plan for the TIF District No. 4-24 therein (the "TIF Plan"); and
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C. WHEREAS, the City has performed all actions required by law to be performed
prior to the establishment of the TIF District No. 4-24 and the adoption of the Development
Program Modification and TIF Plan therefor, including, but not limited to, notification of McLeod
County and Hutchinson Public Schools District No. 423 having taxing jurisdiction over the
property to be included in the TIF District No. 4-24, and the holding of a public hearing upon
published and mailed notice as required by law; and
D. WHEREAS, the City has heretofore created its TIF District 4-16 within the
Development District by approval of a tax increment financing plan (the "District 4-16 TIF Plan");
and
E. WHEREAS, the City proposes to eliminate one parcel, identified as 23-056-2880
(the "Parcel"), from TIF District No. 4-16; and
F. WHEREAS, the City proposes by this resolution to amend the TIF District No. 4-
16 TIF Plan to remove the Parcel from TIF District No. 4-16 thereby reducing the size thereof in
order to include the Parcel in the TIF District No. 4-24; and
G. WHEREAS, since the original net tax capacity of TIF District No. 4-16 will be
reduced by no more than the current net tax capacity of the Parcel to be eliminated from TIF
District No. 4-16, the holding of a public hearing is not required by Minnesota Statutes, Section
469.175, Subd. 4; and
H. WHEREAS, the City approved an interfund loan (the "District No. 4-16 Interfund
Loan") in the amount of $900,000 from the City's Development District No. 5 (Shopko District)
to pay for certain costs identified in the District No. 4-16 TIF Plan; and
L WHEREAS, the District No. 4-16 Interfund Loan is outstanding in the amount of
$324,005.50 and the City has determined to forgive the outstanding principle amount and accrued
interest on the District No. 4-16 Interfund Loan; and
L WHEREAS, Hutchinson — The Landing, LLC (the "Developer") has requested the
City to assist with the financing of certain costs incurred in connection with the construction of a
81-unit residential rental housing facility (the "Project"), to be located in TIF District No. 4-24;
and
J. WHEREAS, the Developer and the City have determined to enter into a
Development Agreement providing for the City's tax increment financing assistance for Project
(the "Development Agreement").
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Hutchinson
follows:
1. Development District No. 4. The City is not modifying the boundaries of the
Development District.
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2. Development Program Modification. The Modification to the Development
Program for the Development District, a copy of which is on file in the office of the City Clerk, is
adopted.
3. Tax Increment Financing District No. 4-24. There is hereby established in the City
within the Development District, Tax Increment Financing District No. 4-24, a housing tax
increment financing district, the initial boundaries of which are fixed and determined as described
in the TIF Plan.
4. Tax Increment Financing Plan. The TIF Plan is adopted as the tax increment
financing plan for the TIF District No. 4-24, and the City Council makes the following findings:
(a) The TIF District No. 4-24 is a housing district as defined in Minnesota
Statutes, Section 469.174, Subd. 11, the specific basis for such determination is set forth in
Appendix C of the TIF Plan.
(b) The proposed development, in the opinion of the City Council, would not
reasonably be expected to occur solely through private investment within the reasonably
foreseeable future. The reasons for such determination are set forth in Appendix C of the
TIF Plan.
(c) The TIF Plan for the TIF District No. 4-24 conforms to the general plan for
development or redevelopment of the City as a whole. The reasons for supporting this
finding are set forth in Appendix C of the TIF Plan.
(d) The TIF Plan will afford maximum opportunity, consistent with the sound
needs of the City as a whole, for the development or redevelopment of the Development
District by private enterprise. The reasons supporting this finding are set forth in Appendix
C of the TIF Plan.
5. Public Purpose. The adoption of the TIF Plan for the TIF District No. 4-24 within
the Development District conforms in all respects to the requirements of the Act and will help
fulfill a need to develop an area of the State which is already built up to provide safe, decent,
sanitary housing for residents of the City, to improve the tax base and to improve the general
economy of the State and thereby serves a public purpose.
6. Certification. The McLeod County Auditor -Treasurer is requested to certify the
original net tax capacity of the TIF District No. 4-24 as described in TIF Plan, and to certify in
each year thereafter the amount by which the original net tax capacity has increased or decreased
in accordance with the Act; and the City Clerk is authorized and directed to forthwith transmit this
request to the County Auditor -Treasurer in such form and content as the Auditor may specify,
together with a list of all properties within the TIF District No. 4-24 for which building permits
have been issued during the 18 months immediately preceding the adoption of this Resolution.
7. Filing. The City Clerk is further authorized and directed to file a copy of the
Development Program Modification and TIF Plan for the TIF District No. 4-24 with the
Commissioner of Revenue and the Office of the State Auditor.
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8. Administration. The administration of the Development District is assigned to the
City Clerk who shall from time to time be granted such powers and duties pursuant to Minnesota
Statutes, Sections 469.130 and 469.131 as the City Council may deem appropriate.
9. TIF 4-24 Interfund Loan. The City has determined that it may pay for certain costs
(the "Qualified Costs") identified in the TIF Plan which costs may be financed on a temporary
basis from the City's general fund or any other fund from which such advances may be legally
made (the "Fund"). Under Minnesota Statutes, Section 469.178, Subd. 7, the City is authorized to
advance or loan money from the Fund in order to finance the Qualified Costs. The City intends to
reimburse itself for the payment of the Qualified Costs, plus interest thereon, from tax increments
derived from the TIF District No. 4-24 in accordance with the following terms (which terms are
referred to collectively as the "Interfund Loan"):
(a) The City shall repay to the Fund from which the Qualified Costs are initially paid,
the principal amount of $447,457 (or, if less, the amount actually paid from such fund) together
with interest at 4.00% per annum (which is not more than the greater of (i) the rate specified under
Minnesota Statutes, Section 270C.40, or (ii) the rate specified under Minnesota Statutes, Section
549.09) from the date of the payment.
(b) Principal and interest on the Interfund Loan ("Payments") shall be paid annually on
each December 31 commencing with the date the tax increments from the TIF District No. 4-24
are available and not otherwise pledged to and including the earlier of (a) the date the principal
and accrued interest of the Interfund Loan is paid in full, or (b) the date of last receipt of tax
increment from the TIF District No. 4-24 ("Payment Dates") which Payments will be made in the
amount and only to the extent of available tax increments. Payments shall be applied first to
accrued interest, and then to unpaid principal.
(c) Payments on the Interfund Loan are payable solely from the tax increment
generated in the preceding twelve (12) months with respect to the TIF District No. 4-24 and
remitted to the City by McLeod County, all in accordance with Minnesota Statutes, Sections
469.174 to 469.1794, as amended. Payments on this Interfund Loan are subordinate to any
outstanding or future bonds, notes or contracts secured in whole or in part with tax increment, and
are on parity with any other outstanding or future interfund loans secured in whole or in part with
tax increments.
(d) The principal sum and all accrued interest payable under this Interfund Loan are
pre -payable in whole or in part at any time by the City without premium or penalty. No partial
prepayment shall affect the amount or timing of any other regular payment otherwise required to
be made under this Interfund Loan.
(e) The Interfund Loan is evidence of an internal borrowing by the City in accordance
with Minnesota Statutes, Section 469.178, Subd. 7, and is a limited obligation payable solely from
tax increment pledged to the payment hereof under this resolution. The Interfund Loan 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 City. Neither the State of
Minnesota, nor any political subdivision thereof shall be obligated to pay the principal of or interest
on the Interfund Loan or other costs incident hereto except out of tax increment, and neither the
4
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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 the Interfund Loan or other costs
incident hereto. The City shall have no obligation to pay any principal amount of the Interfund
Loan or accrued interest thereon, which may remain unpaid after the termination of the TIF District
No. 4-24.
(f) The City may amend the terms of the Interfund Loan at any time by resolution of
the City Council, including a determination to forgive the outstanding principal amount and
accrued interest to the extent permissible under law.
10. Removal of Parcel from District No. 4-16. The District No. 4-16 TIF Plan for TIF
District No. 4-16 is hereby amended to remove the Parcel and the City Clerk is authorized and
directed to notify the McLeod County Auditor -Treasurer pursuant to Minnesota Statutes 469.175,
Subdivision 4, clause (e).
11. TIF 4-16 Interfund Loan. The City determines to forgive the outstanding principal
amount and accrued interest on the District No. 4-16 Interfund Loan.
12. Development Agreement.
(a) The Council hereby approves the Development Agreement in substantially the form
submitted, and the Mayor and the City Administrator are hereby authorized and directed to execute
the Development Agreement on behalf of the Council.
(b) The approval hereby given to the Development Agreement includes approval of
such additional details therein as may be necessary and appropriate and such modifications thereof,
deletions therefrom and additions thereto as may be necessary and appropriate and approved by
the City officials authorized by this resolution to execute the Development Agreement. The
execution of the Development Agreement by the appropriate officer or officers of the City shall
be conclusive evidence of the approval of the Development Agreement in accordance with the
terms hereof.
The motion for adoption of the foregoing resolution was duly seconded by member
and, after full discussion thereof, and upon a vote being taken thereof, the
following voted in favor thereof:
and the following voted against same:
Adopted this 9th day of September, 2025.
Mayor
Attest:
City Clerk
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STATE OF MINNESOTA
COUNTY OF MCLEOD
CITY OF HUTCHINSON
I, the undersigned, being the duly qualified and acting City Clerk of the City of Hutchinson,
Minnesota, DO HEREBY CERTIFY that I have compared the attached and foregoing extract of
minutes with the original thereof on rile in my office, and that the same is a full, true and complete
transcript of the minutes of a meeting of the City Council of said City, duly called and held on the
date therein indicated, insofar as such minutes relate to the modification of the Development
Program for Municipal Development District No. 4, establishment of Tax Increment Financing
District No. 4-24 in the City, authorization of an interfund loan, authorization of execution of a
development agreement, and the removal of a parcel from Tax Increment Financing District No 4-
16.
WITNESS my hand as such City Clerk of the City Council of the City of Hutchinson,
Minnesota this day of September, 2025.
City Clerk
6
176102042v1
RA
HUTCHINSON CITY COUNCIL
HUTCHINSON Request for Board Action
A CITY ON PURPOSE.
SECOND READING AND ADOPTION OF ORDINANCE FOR THE SALE OF
Agenda Item: MUNICIPALLY OWNED REAL PROPERTY
Department: EDA
LICENSE SECTION
Meeting Date: 9/9/2025
Application Complete N/A
Contact: Miles R. Seppelt
Agenda Item Type:
Presenter: Miles R. Seppelt
Reviewed by Staff ❑
Unfinished Business
Time Requested (Minutes): 5
License Contingency N/A
Attachments: Yes
BACKGROUND/EXPLANATION OFAGENDA ITEM:
Preparations are continuing for the redevelopment of the old medical clinic site located at 126
Franklin Street North.
This past Spring, the City distributed a Request for Proposals (RFP) to developers inviting them
to submit ideas for redeveloping the site. As an incentive, the winning developer would be able
to purchase the site for $1. CG Real Estate Partners of St. Cloud submitted the proposal
deemed to be the in the best interests of the City and the best fit for the site. Their proposal calls
for the development of an 81-unit market rate apartment complex on the site with construction
projected to begin this fall.
The first reading of the ordinance to sell municipally owned real property was at the August 26th
City Council meeting. This action is the Second Reading and Adoption required to complete the
process. The ordinance and purchase agreement are ATTACHED for your review.
Staff will be on hand at the council meeting to provide additional information and answer any
questions you may have.
In the meantime, if you have any questions or need additional information, please give me a call
anytime at 234-4223.
BOARD ACTION REQUESTED:
Second reading and adoption of ordinance; authorization for Mayor & City Administrator to sign necessary
documents to complete sale of property
Fiscal Impact: Funding Source: Planning dollars
FTE Impact: Budget Change: New Bu
Included in current budget: No
PROJECT SECTION:
Total Project Cost:
Total City Cost: Funding Source:
Remaining Cost: $ 0.00 Funding Source:
ORDINANCE NO. 25-858
PUBLICATION NO.
AN ORDINANCE OF THE CITY OF HUTCHINSON, MINNESOTA, AUTHORIZING THE SALE OF
MUNICIPALLY OWNED REAL PROPERTY
THE CITY OF HUTCHINSON ORDAINS:
Section 1. That the municipally owned real property legally described as follows:
A. Lots 1, 2, 3, 4, 5, Block 41, North Half Hutchinson
B. W '/2 of Lots 6-7, Block 41, North Half Hutchinson
C. E'/2 of Lots 6-7, Block 41, North Half Hutchinson
for good and valuable consideration is hereby transferred and conveyed to Hutchinson — The Landing,
LLC or its successor or assigns as agreed upon in the purchase agreement.
Section 2. The City Administrator, Matthew Jaunich, or his designee is authorized to sign any
and all documents on behalf of the City to effectuate the closing of this transaction.
Section 3. This ordinance shall take effect upon its adoption and publication.
Adopted by the City Council this 9tn day of September, 2025.
Gary T. Forcier
Mayor
ATTEST:
Matthew Jaunich
City Administrator
RA
HUTCHINSON CITY COUNCIL
HUTCHINSON Request for Board Action
A CITY ON PURPOSE.
2nd Reading - Consideration of an Ordinance of the City of Hutchinson, Minnesota
Agenda Item: vacating the alley located near 126 Franklin St NW.
Department: Planning
LICENSE SECTION
Meeting Date: 9/9/2025
Application Complete N/A
Contact: Dan Jochum
Agenda Item Type:
Presenter: Dan Jochum
Reviewed by Staff
Unfinished Business
Time Requested (Minutes): 5
License Contingency N/A
Attachments: Yes
BACKGROUND/EXPLANATION OFAGENDA ITEM:
As the Planning Commission is aware, City Staff has been working with a developer to redevelop
the old Medical Center site into an apartment complex. The City Council approved a preliminary
and final plat for the subject property in July 2025. That plat eliminated the alley, which is no
longer needed, thus the request to vacate the alley.
Nobody from the Public spoke regarding this request.
The Planning Commission did not have any questions regarding this request.
The Planning Commission voted unanimously (6-0) to recommend approval of this request.
BOARD ACTION REQUESTED:
Approval of 2nd reading of ordinance to vacate alley.
Fiscal Impact: Funding Source:
FTE Impact: Budget Change: New Bu
Included in current budget: No
PROJECT SECTION:
Total Project Cost:
Total City Cost: Funding Source: N/A
Remaining Cost: $ 0.00 Funding Source: N/A
PUBLICATION NO.
ORDINANCE NO. 25-859
AN ORDINANCE OF THE CITY OF HUTCHINSON, MINNESOTA VACATING THE
ALLEY IN BLOCK 41, NORTH HALF HUTCHINSON
THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA ORDAINS:
Section 1. Notice of hearing was duly given and publication of said hearing was duly made and
was made to appear to the satisfaction of the City Council that it would be in the best interests of
the City to vacate the alley located in Block 41, North Half Hutchinson.
Section 2. That the alley to be vacated is described as follows:
All of the alley in Block 41, as dedicated in the plat, North Half of Hutchinson, according to the
plat thereof on file and of record in the office of the County Recorder, McLeod County,
Minnesota.
Section 3. This ordinance shall take effect from and after passage and publication.
Adopted by the City Council this 9t1i day of September, 2025.
ATTEST:
Matthew Jaunich Gary T. Forcier
City Administrator Mayor
u
FIRM
HUTCHINSON
A CITY ON PURPOSE.
DIRECTORS REPORT - PLANNING DEPARTMENT
To: Hutchinson Planning Commission
From: Dan 7ochum, AICP and City of Hutchinson Planning Staff
Date: August 19, 2025
Application: Consideration of an Ordinance of the City of Hutchinson, Minnesota
vacating the alley located near 126 Franklin St NW.
Applicant: City of Hutchinson
VACATION OF ALLEY:
" Indicates property described in this notice
145
135
125 126
z
LU
J
1
145 135
¢
L
1STAVE NW
GENERAL INFORMATION
Applicable Regulations: Section 13.05 Vacation of Streets - City Charter
Brief Description:
As the Planning Commission is aware, City Staff has been working with a developer to
redevelop the old Medical Center site into an apartment complex. The City Council approved a
preliminary and final plat for the subject property in July 2025. That plat eliminated the alley,
which is no longer needed, thus the request to vacate the alley.
Recommendation:
1. Vacate Alley.
RA
HUTCHINSON CITY COUNCIL
HUTCHINSON Request for Board Action
A CITY ON PURPOSE.
2nd Reading - Consideration of an Ordinance of the City of Hutchinson, Minnesota
Agenda Item: vacating a sanitary sewer easement located at 126 Franklin St NW.
Department: Planning
LICENSE SECTION
Meeting Date: 9/9/2025
Application Complete N/A
Contact: Dan Jochum
Agenda Item Type:
Presenter: Dan Jochum
Reviewed by Staff
Unfinished Business
Time Requested (Minutes): 5
License Contingency N/A
Attachments: Yes
BACKGROUND/EXPLANATION OFAGENDA ITEM:
The City of Hutchinson is requesting to vacate an easement for a sanitary sewer that is located
on lot 3, block 41, north half City of Hutchinson. As part of the proposed Landing Apartment
project the Sanitary Sewer will be rerouted. The Plat that was approved for the Landing Project
in July of 2025 has a new easement for the proposed new sanitary sewer line.
The legal description of the area to be vacated is as follows:
A right-of-way easement 10 feet wide over and across Lot 3, Block 41, North half for a distance
of 132 feet, City of Hutchinson, McLeod County, Minnesota.
Nobody from the public spoke regarding this request.
The Planning Commission voted unanimously (6-0) to recommend approval of this request.
BOARD ACTION REQUESTED:
Approval of 2nd reading of ordinance.
Fiscal Impact: Funding Source:
FTE Impact: Budget Change: New Bu
Included in current budget: No
PROJECT SECTION:
Total Project Cost:
Total City Cost: Funding Source: N/A
Remaining Cost: $ 0.00 Funding Source: N/A
PUBLICATION NO.
ORDINANCE NO. 25-860
AN ORDINANCE OF THE CITY OF HUTCHINSON, MINNESOTA VACATING THE
RIGHT-OF-WAY (SANITARY SEWER) EASEMENT LOCATED AT 126 FRANKLIN
ST. NW
THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA ORDAINS:
Section 1. Notice of hearing was duly given and publication of said hearing was duly made and
was made to appear to the satisfaction of the City Council that it would be in the best interests of
the City to vacate the Right-of-way (sanitary sewer) easement located on 126 Franklin St NW,
Hutchinson.
Section 2. That the easement to be vacated is described as follows:
The legal description of the area to be vacated is as follows:
A right-of-way easement 10 feet wide over and across Lot 3, Block 41, North half for a distance
of 132 feet, City of Hutchinson, McLeod County, Minnesota.
Section 3. This ordinance shall take effect from and after passage and publication.
Adopted by the City Council this 9t1i day of September, 2025.
ATTEST:
Matthew Jaunich Gary T. Forcier
City Administrator Mayor
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HUTCHINSON
A CITY ON PURPOSE.
DIRECTORS REPORT - PLANNING DEPARTMENT
To: Hutchinson Planning Commission
From: Dan 7ochum, AICP and City of Hutchinson Planning Staff
Date: August 19, 2025
Application: Consideration of an Ordinance of the City of Hutchinson, Minnesota
vacating a sanitary sewer easement located at 126 Franklin St NW.
Applicant: City of Hutchinson
Vacation of Easements
The City of Hutchinson is requesting to vacate an easement for a sanitary sewer that is located
on lot 3, block 41, north half City of Hutchinson. As part of the proposed Landing Apartment
project the Sanitary Sewer will be rerouted. The Plat that was approved for the Landing Project
in July of 2025 has a new easement for the proposed new sanitary sewer line.
The legal description of the area to be vacated is as follows:
A right-of-way easement 10 feet wide over and across Lot 3, Block 41, North half for a distance
of 132 feet, City of Hutchinson, McLeod County, Minnesota.
Applicable Regulations: City Charter Section 13.05
Vacation: Section 13.05 of the City Charter states: "A majority of the council may by resolution
vacate any street, alley or any public grounds within the city. Such vacation may be made only
after published notice and an opportunity of affected property owners and public to be heard,
and upon such further terms and by such procedure as is prescribed in MN Stat 412.851, and
which the council by resolution may prescribe. A notice of completion of such proceedings shall
be filed with the proper county officers in accordance with law."
Recommendation:
Staff recommends approval of the vacation and release of easement as described in the
vacation of easement legal description.
Library Board Meeting
June 23, 2025
Library Meeting Room
Members present: Dianne Wanzek, Margaret Hoffman, Julie Lofdahl, Sue Griep
Ex—Officio: KatyHiltner
Members absent: Carolyn Ulrich, Mary Christensen, Tim Burley
Old Business
City Street Project
The project is underway. The brickwork is scheduled to be done on Wednesday, weather permitting. The
front door will be closed that day with patrons directed to enter the emergency door by the adult section.
The library will be closed at 6:00 PM that day, and the library will need to be closed for one day after the
brick is installed. The contractors will schedule another half -day to do an acid wash.
Launch of Summer Reading Program
The program is off to a great start with the following numbers: 408 children, 58 teens, 60+ adults.
Elisabeth reported that many signed up when she participated in a Community Day at the Rec. Center.
In total, 44 children and 1 teen signed up for the summer reading program at the Communty Day event.
New Circulation Items
Board games and video games are now available for checkout.
Program Reminders
1. Jay Grammond Photography will do a presentation on June 25 at the Event Center at 10:30 A.M.
2. "A Century of Games", Monday, June 30, 4:00-7:30 in the meeting room (games from 1920s-30s).
Program Reports
1. Children's Programming- The first Stories in the Park took place in Northwoods Park, other
activities were available too.
2. Teen Gaming — 9 teens participated in the first event in June.
3. DNR Storytime —130 attendees enjoyed a presentation on bats at Northwoods Park.
4. Climb Theater —100 attendees enjoyed their performance at the Event Center. This was a Legacy
Program.
Coming Up
1. "A Century of Games" will start on Monday, followed by more in July and August.
2. We will have our first Escape Room (Fairytales Escape) this Friday and Saturday. All 48 one hour
slots are filled. We will have another one in July, and also in August.
3. 4-H will present a program on "Your Amazing Brain" for Stories in the Park at the fairgrounds on July
10.
General Programming
1. After the presentation on bats, Savannah Stephenson presented a Nature Table from 12:30-2:30
with 50 stopping by to talk with her.
2. The first "Voices from History Past" was presented on June 20 at The Depot. Kay Voigt and Tim
Fallon did a presentation on trains. There were 23 in attendance.
New Business
July Calendar of Events
1. Stories in the Parks will feature guest readers which includes: Dairy Princesses, Water Carnival
Royalty, and Naturalist Rachel Cooley.
2. Another Escape Room is planned in July.
3. "A Century of Games" will be held on:
A. July 10, 2:00-5:30, 1940s-50s
B. July 14, 10:00-1:30, 1960s-70s
C. July 31, 4:00-7:30, 1980s-90s
Bonus Activity, Riversong Coloring Contest
Coloring contest forms were distributed at local schools and are available at the library. There will be
winners in two different age groups.
Holiday Closure
The library will be closed on Friday, July 4 in observance of the holiday.
Our next meeting will be held on July 28, 2025.
Respectfully submitted,
Sue Griep
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HUTCHINSON
A CITY ON PURPOSE.
MINUTES
HUTCHINSON PLANNING COMMISSION
Tuesday, April 15, 2025
5:30 p.m.
1. CALL TO ORDER 5:30 P.M.
The April 15, 2025 Planning Commission meeting was called to order by Chairman Fahey
at 5:30 p.m. Members in bold were present Chairman Fahey, Vice Chairman Hacker,
Commissioner Garberg, Commissioner Zuidema, Commissioner Sebesta, and
Commissioner Janssen, Commissioner Kosek. Also present were Dan Jochum,
City Planner, Mike Stifter, City Public Works Director, Justin Black, City Engineer,
Marc Sebora, City Attorney, Andrea Schwartz, City of Hutchinson Planning and
Building Specialist, Rozanne Johnson, City of Hutchinson Planning and Building
Assistant.
2. PLEDGE OF ALLEGIANCE
3. CONSENT AGENDA
A. CONSIDERATION OF MINUTES DATED March 18, 2025.
Motion by Commissioner Hacker to approve March 18, 2025 meeting minutes.
Second by Commissioner Sebesta. Motion approved.
4. PUBLIC HEARING
A. CONSIDERATION OF A LOT SPLIT LOCATED AT 216 4T" AVE SW.
Dan Jochum, City Planner addressed the Commission and gave a brief overview of
the project. Mr. Jochum then covered the staff report.
Motion by Commissioner Janssen, second by Commissioner Sebesta to close the
hearing at 5:34 p.m.
Motion by Commissioner Garberg to approve the Lot Split with 2 staff
recommendations. Second by Commissioner Zuidema. Item will be on City Council
consent agenda on 04/22/25.
B. CONSIDERATION OF A FINAL PLAT FOR BERGS PROPERIES LOCATED AT 628
LYNN RD SW.
Minutes
Hutchinson Planning Commission
April 15, 2025
Page 2
Dan Jochum, City Planner addressed the Commission and gave a brief overview of
the project. Mr. Jochum then covered the staff report.
Janssen, will new property have a Miller Ave address, Mr. Jochum answered that
the yes the new address will be Miller. It was also asked if the garage on the new
lot will stay or be removed. It will be removed.
Motion by Commissioner Zuidema, second by Commissioner Hacker to close the
hearing at 5:41 p.m.
Motion by Commissioner Hacker to approve the Final Plat, with 4 staff
recommendations. Second by Commissioner Janssen. Item will be on City Council
consent agenda on 04/22/25.
C. CONSIDERATION OF A FINAL PLAT FOR ELK RIDGE ESTATES.
Dan Jochum, City Planner addressed the Commission and gave a brief overview of
the project. Mr. Jochum then covered the staff report.
Garberg, pond and strip easement, is this City? No, what will be done with mowing
on this area, Mike — City will mow one or 2 time to keep invasive out.
Janssen asked question about grading on outlot b for utilities in future. Mr. Reiner
will do grading now for phase 2 but not install utilities.
Wade Padernos, 320 Jefferson Ct — will maintenance be done behind him? They
have been maintaining until now. Mike — the City will to a few times a year. He
would like mowing done more frequently. Drainage and ponding. A new pond will
be developed to the south. This will be installed at the start. Current stormwater
lines will connect to this.
1363 Bradford — would like a copy of the plan, will there be regulations on what
owners can do in their yard. Yes, City ordinance states 1 utility shed and 1
detached garage.
Motion by Commissioner Garberg, second by Commissioner Sebesta to close the
hearing at 5:57 p.m.
Motion by Commissioner Hacker to approve the Final Plat with 5 staff
recommendations. Second by Commissioner Zuidema. Item will be on City Council
consent agenda on 04/22/25.
D. CONSIDERATION OF AN AMENDMENT TO THE ZONING ORDINANCE FOR THE I-
1 LIGHT INDUSTRIAL ZONING DISTRICT.
Dan Jochum, City Planner addressed the Commission and gave a brief overview of
the project. Mr. Jochum then covered the staff report.
Minutes
Hutchinson Planning Commission
April 15, 2025
Page 3
Janssen, do we have a definition of what a data center is? Are there any
restrictions on noise or any other items? Mr. Jochum noted the State has
restrictions and standards on this.
Marc Sebora, number one issue can be noise. This was discussed by City to be
able to control this with conditions. The definition is hard because it is continually
changing.
Motion by Commissioner Janssen, second by Commissioner Sebesta to close the
hearing at 6:07 p.m.
Motion by Commissioner Hacker to approve the Amendment to Zoning Ordinance.
Second by Commissioner Zuidema. Item will be on City Council new business
agenda on 04/22/25.
5. NEW BUSINESS
A. CONSIDERATION OF A SITE PLAN REVIEW FOR 126 FRANKLIN ST NW.
Dan Jochum, City Planner addressed the Commission and gave a brief overview of
the project. Mr. Jochum then covered the staff report.
Ted Schmidt, Lumber One — developer, Ponding - questions on water table level,
soil borings are going to be done later this week and the developer will look at
that and work with the City on what type of pond to install.
City is working on a bank stabilization (with the DNR) in the area.
Mr. Hacker noted he has seen the project in Willmar and has good things to say,
he also has heard about the project in Litchfield and they had a good working
relationship with the developer. He is happy to see this project.
Mr. Fahey noted the need for this project and how good it will be for downtown.
Garberg asked if this project will affect the proposed townhomes on Franklin St.
The townhomes are a different project. That group is still working on their project
but is working on some elevation issues. The Landing project will not affect the
townhomes.
Hacker, when to break ground. The group is hoping for Aug/Sept.
Motion by Commissioner Zuidema to approve the Site Plan Review with 9 staff
recommendations. Second by Commissioner Hacker. Item will be on City Council
consent agenda on 04/22/25.
6. UNFINISHED BUSINESS
Minutes
Hutchinson Planning Commission
April 15, 2025
Page 4
A. With sidewalk discussion from March meeting, staff would like to come forward
with some recommendations for amending sidewalk regulations in our
Ordinance/Policies.
7. COMMUNICATION FROM STAFF
A. MAY MEETING — 5t" Ave NW (Work Horse) Project may be on future Planning
Commission agendas.
8. ADJOURNMENT
Motion was made by Commissioner Garberg, second by Commissioner Janssen to
adjourn the meeting, Meeting was adjourned at 6:57 p.m.
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HUTCHINSON
A CITY ON PURPOSE.
MINUTES
HUTCHINSON PLANNING COMMISSION
Tuesday, July 15, 2025
5:30 p.m.
1. CALL TO ORDER 5:30 P.M.
The April 15, 2025 Planning Commission meeting was called to order by Chairman Fahey
at 5:30 p.m. Members in bold were present Chairman Fahey, Vice Chairman Hacker,
Commissioner Garberg, Commissioner Zuidema, Commissioner Sebesta, and
Commissioner Janssen, Commissioner Kosek. Also present were Dan Jochum, City
Planner, Mike Stifter, City Public Works Director, Brandon Braithwaite, City
Engineer, Marc Sebora, City Attorney, Andrea Schwartz, City of Hutchinson
Planning and Building Specialist, Rozanne Johnson, City of Hutchinson Planning and
Building Assistant.
2. PLEDGE OF ALLEGIANCE
3. CONSENT AGENDA
A. CONSIDERATION OF MINUTES DATED April 15, 2025.
Motion by Commissioner Sebesta to approve April 15, 2025 meeting minutes.
Second by Commissioner Zuidema. Motion approved.
4. PUBLIC HEARING
A. CONSIDERATION OF A CONDITIONAL USE PERMIT FOR A TATTOO
ESTABLISHMENT IN A C-3 ZONING DISTRICT LOCATED AT 146 FRANKLIN ST SW.
Dan Jochum, City Planner addressed the Commission and gave a brief overview of
the project. Mr. Jochum then covered the staff report.
Motion by Commissioner Garberg, second by Commissioner Sebesta to close the
hearing at 5:35 p.m.
Motion by Commissioner Garberg to approve the Conditional Use Permit with 5
staff recommendations. Second by Commissioner Zuidema. Item will be on City
Council consent agenda on 07/22/25.
B. CONSIDERATION OF A PRELIMINARY AND FINAL PLAT FOR THE LANDING.
Minutes
Hutchinson Planning Commission
July 15, 2025
Page 2
Dan Jochum, City Planner addressed the Commission and gave a brief overview of
the project. Mr. Jochum then covered the staff report.
Commissioner Garberg asked about the parking lot area being in the outlot area.
Dan noted this area needs to remain in the City name for the FEMA grant to uphold.
The parking lot is permitted but the lot lines need to remain where they are. There
is an easement for the parking area.
Germaine Block 216 Cedar Ave NW, live across from the parking lot entrance,
concerned about traffic and monitoring any issues. There will be increased traffic
but the majority of traffic will be in the south driveway for the garage entrance
and exit. Traffic should be flowing south from there.
Motion by Commissioner Janssen, second by Commissioner Garberg to close the
hearing at 5:51 p.m.
Motion by Commissioner Garberg to approve the Preliminary Plat, Second by
Commissioner Zuidema. Item will be on City Council consent agenda on
07/22/25.
Motion by Commissioner Zuidema to approve the Final Plat, with 2 staff
recommendations. Second by Commissioner Janssen. Item will be on City Council
consent agenda on 07/22/25.
S. NEW BUSINESS
A. CONSIDERATION OF A SITE PLAN REVIEW FOR A SHERWIN WILLIAMS STORE
AT 1510 HWY 15 S.
Dan Jochum, City Planner addressed the Commission and gave a brief overview of
the project. Mr. Jochum then covered the staff report.
Commissioner Fahey asked about the stormwater retention on the O'Riley site.
There is a dry basin on the south side that connects to The City storm system and
drains to the pond behind Target to the west. Commissioners wondered if the
water from Sherwin William could also drain to the same pond that O'Riley uses.
This will be something the Engineering team will address.
Ben, Interstate Engineering — Olivia, MN, noted the grade on the Sherwin Williams
site drops from North to South so the plan was to have the water sheet flow to
the SW corner to slow down the flow before entering the fields. Also noted the
parcel is less than 1 acre so would not require ponding, but they are making effort
to slow down the water. Redirecting the flow could be done but would need to be
looked at.
Minutes
Hutchinson Planning Commission
July 15, 2025
Page 3
Motion by Commissioner Sebesta to approve the Site Plan Review with 6 staff
recommendations. Second by Commissioner Janssen. Item will be on City Council
consent agenda on 07/22/25.
6. UNFINISHED BUSINESS
A. NONE
7. COMMUNICATION FROM STAFF
A. Introduction of our new City Engineer, Brandon Braithwaite.
B. Dan gave an overview of Building and Planning activity
C. Update on the Downtown Plan (1st Ave Festival street project, wayfinding for public
pa rki ng,)
8. ADJOURNMENT
Motion was made by Commissioner Garberg, second by Commissioner Zuidema to
adjourn the meeting, Meeting was adjourned at 6:20 p.m.