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cp12-09-25HUTCHINSON A CITY ON PURPOSE. CITY OF HUTCHINSON MCLEOD COUNTY HUTCHINSON, MINNESOTA NOTICE OF A SPECIAL CITY COUNCIL MEETING Tuesday, December 9, 2025 4:00 p.m. Council Chambers — Hutchinson City Center Notice is hereby given that the Hutchinson City Council has called a special meeting for Tuesday, December 9, 2025, at 4:00 p.m. in the Council Chambers at the Hutchinson City Center, 111 Hassan Street SE, Hutchinson, Minnesota for the following purpose: • CONDUCT A HEARING TO CONSIDER DECLARATION OF NUISANCE CONDITIONS AT 317 ALAN STREET SW t Matthew Jaun' ,City Administrator DATED: December 4, 2025 POSTED: City Center HUTCHINSON CITY COUNCIL MEETING AGENDA TUESDAY, DECEMBER 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: Ciiypolicy andpractices, inputfrom constituents, and other questions or information that has not yet been presented or discusseddregarding 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 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 preference for, 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. 15947 — Resolution Accepting $500.00 Donation from American Legion Post 96 for Police Department Shop With a Cop Event (b) Resolution No. 15949 — Resolution Accepting $900.00 Donation from Linell and Steven Loncorich for Cemetery Maintenance and Operations PUBLIC COMMENTS (This 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 acceptingpublic comments during the agenda item ifnot apublic hearing. Ifyou have a question, concern or comment, please ask to e 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, butplease refrain from personal or derogatory attacks on individuals) 5. CITIZENS ADDRESSING THE CITY COUNCIL 6. APPROVAL OF MINUTES (a) Regular Meeting of November 25, 2025 CONSENT AGENDA (The items listed77 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 Approval of 2026 License Renewals (b) Consideration for Approval of Items for Water Treatment Plant Reverse Osmosis Membrane Replacements (Letting No. 3, Project No. 26-03) 1. Resolution No. 15945 — Resolution Ordering Preparation of Report on Improvement 2. Resolution No. 15946 — Resolution Receiving Report and Calling Hearing on Improvement CITY COUNCIL AGENDA —December 9, 2025 (c) Consideration for Approval of Resolution No. 15950 — Resolution Approving State Airport Fund Grant Agreement With MnDOT (d) Claims, Appropriations and Contract Payments — Register A APPROVAL OF CONSENT AGENDA II (a) Claims, Appropriations and Contract Payments — Register B PUBLIC HEARINGS — 5:30 P.M. 9. BUSINESS SUBSIDY FOR 10 MAIN STREET LLC — JORGENSEN HOTEL PROJECT (a) Approve/Deny Resolution No. 15948 — Resolution Authorizing Execution of an Amended and Restated Development Agreement and Approval of a Business Subsidy 10. EDMONTON AVENUE SE PROJECT (LETTING NO. 1, PROJECT NO. 26-01) (a) Approve/Deny Resolution No. 15941 — Resolution Ordering Improvement and Preparation of Plans and Specifications (b) Approve/Deny Resolution No. 15942 — Resolution Approving Plans and Specifications and Ordering Advertisement for Bids 11. 2026 STREET IMPROVEMENTS PROJECTS (LETTING NO. 2, PROJECT NO. 26-02) (a) Approve/Deny Resolution No. 15943 — Resolution Ordering Improvement and Preparation of Plans and Specifications (b) Approve/Deny Resolution No. 15944 — Resolution Approving Plans and Specifications and Ordering Advertisement for Bids purpose o t is portion o t e agen a is to provi e t e ounci with information necessary to craft wise policy. ides items like monthly or annual reports and communications from other entities.) 12. REVIEW OF TRUTH IN TAXATION HEARING UNFINISHED BUSINESS 13. APPROVE/DENY SECOND READING AND ADOPTION OF ORDINANCE NO. 25-867 — AN ORDINANCE TO REZONE PROPERTY AT 155 GLEN STREET NW 14. APPROVE/DENY SECOND READING AND ADOPTION OF ORDINANCE NO. 25-869 — AN ORDINANCE AMENDING SECTION 153.072 - PUBLIC SITES, OPEN SPACES AND BICYCLE AND PEDESTRIAN PATHS NEW BUSINESS 15. APPROVE/DENY FIRST READING OF ORDINANCE NO. 25-868 - AN ORDINANCE TO 2 CITY COUNCIL AGENDA —December 9, 2025 REZONE PROPERTY AT 552,554 and 564 JEFFERSON STREET SE WITH FAVORABLE PLANNING COMMISSION RECOMMENDATION 16. APPROVE/DENY AMENDING ATTACHMENT A OF THE HUTCHINSON FIRE RELIEF ASSOCIATION BYLAWS — INCREASING BENEFIT AMOUNT TO MEMBERS 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.) 17. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS (a) Library Board Minutes from October 27, 2025 NHSCELLANEOUS 18. STAFF UPDATES 19. COUNCIL/MAYOR UPDATE ADJOURNMENT CITY OF HUTCHINSON RESOLUTION NO. 15947 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 American Legion Post 96 $500.00 11/25/2025 WHEREAS, such donations have been contributed to the City of Hutchinson Police Department towards their annual Shop with a Cop event. 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 December 2025. ATTESTED: Matthew Jaunich City Administrator APPROVED: Gary T. Forcier Mayor CITY OF HUTCHINSON RESOLUTION NO. 15949 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 Linell & Steven Loncorich $900.00 12/1/2025 WHEREAS, such donations have been contributed to the City of Hutchinson's Oakland Cemetery towards cemetery maintenance and operations. 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 December 2025. ATTESTED: Matthew Jaunich City Administrator APPROVED: Gary T. Forcier Mayor HUTCHINSON CITY COUNCIL MEETING MINUTES TUESDAY, NOVEMBER 25, 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: Ciiypolicy andpractices, inputfrom constituents, and other questions or information that has not yet been presented or discusseddregarding 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 Motion by Burley, second by Sebesta, to approve the agenda as presented. Motion carried unanimously. 2. INVOCATION — Christ the King Lutheran Church (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 preference for, 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. 15938 — Resolution Accepting $4102.35 Donation from Hutchinson Huskies for VMF Grandstand Project (b) Resolution No. 15939 — Resolution Accepting $1125.00 Donation from Hutchinson Health Foundation for Maintenance of Community Bike Fleet Motion by Czmowski, second by Burley, to approve Resolution Nos. 15938 and 15939. Motion carried unanimously. PUBLIC COMMENTS (This 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 acceptingpublic comments during the agenda item ifnot apublic hearing. Ifyou have a question, concern or comment, please ask to e 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, butplease refrain from personal or derogatory attacks on individuals) 5. CITIZENS ADDRESSING THE CITY COUNCIL 6. APPROVAL OF MINUTES (a) Workshop of November 12, 2025 (b) Regular Meeting of November 12, 2025 Motion by May, second by Sebesta, to approve 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) CITY COUNCIL MINUTES — November 25, 2025 7. APPROVAL OF CONSENT AGENDA (a) Consideration for Approval of 2026 License Renewals (b) Consideration for Approval of Issuing Short -Term Gambling License to 3M Club on April 16, 2026 (c) Consideration for Approval to Purchase a Belt Trailer for Creekside Soils (d) Consideration for Approval of Airport Hangar Re -Skin and Re -Roof (e) Consideration for Approval of Purchase of Skid Steer for Public Works Department (f) Consideration for Approval of Professional Agreement With Bolton & Menk for Snow Removal Equipment Building Project (g) Consideration for Approval of Supplemental Agreement With SEH for Edmonton Roundabout Design (h) Consideration for Approval of Lease Agreement, Master Relationship Agreement and Nondisclosure Agreement With Deimos Materials to Lease Space in Hutchinson Enterprise Center (i) Consideration for Approval of Resolution No. 15937 — Resolution Adopting Findings of Fact and Reasons for Approval of a Final Plat for Shepards Meadow With Favorable Planning Commission Recommendation (j) Consideration for Approval of Resolution No. 15940 — Resolution Adopting Findings of Fact and Reasons for Approval of a Comprehensive Plan Amendment Located at 552, 554, 564 Jefferson Street SE With Favorable Planning Commission Recommendation (k) Claims, Appropriations and Contract Payments Motion by Czmowski, second by Burley, to approve consent agenda. Motion carried unanimously. PUBLIC HEARINGS — 5:30 P.M. - NONE COMMUNICATIONS REQUESTS AND PETITIONS (Thep urpose of this portion oJ the agenda is to provi e the ounci with information necessary to craft wise policy. Includes items like monthly or annual reports and communications from other entities.) 8. MS4 ANNUAL MEETING TO RECEIVE INPUT AND CONSIDER COMMENTS ON THE STORM WATER POLLUTION PREVENTION PLAN (SWPPP) FOR THE CITY OF HUTCHINSON Brandon Braithwaite, Assistant Public Works Director/City Engineer, presented before the Council. Mr. Braithwaite noted that this presentation is required annually in compliance with the MPCA 2 CITY COUNCIL MINUTES — November 25, 2025 National Pollution Discharge Elimination System Phase II permit that the City holds. This is required of all cities that have and maintain a Municipal Separate Storm Sewer System (MS4). Mr. Braithwaite reviewed the reasons stormwater is regulated and the City's stormwater system. As part of the MS4 storm water program, minimum control standards must be maintained. These standards include: 1. Public Education & Outreach; 2. Public Participation/Involvement; 3. Illicit Discharge Detection and Elimination; 4. Construction Site Stormwater Control; 5. Post -Construction Stormwater Management; and 6. Pollution Prevention/Good Housekeeping. Matt Jaunich, City Administrator, noted that because Hutchinson is an MS4 city, additional requirements are put in place for stormwater controls due to the MPCA permitting. No public comments were received. Motion by May, second by Czmowski, to approve Stormwater Pollution Prevention Plan. Motion carried unanimously. 9. DISCUSSION ON THE PRELIMINARY BUDGET AND TAX LEVY FOR 2026 Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich provided an update to the Council on the preliminary budget and proposed tax levy for 2026. Mr. Jaunich noted that significant changes have been made to the preliminary budget and tax levy from September. Identified increased revenues of $113,870 have helped reduce the tax levy by $214,243. These increases have come from building permit revenues, state aid for police and fire pensions received, charges and services were increased and other minor adjustments. In addition, expenses were decreased by $65,419. These decreases are made up of the LMCIT reduced workers compensation rates by an average of 25%, open enrollment for health benefits and other employee related costs, software costs related to a new system for building permits and other minor adjustments. With these adjustments, the proposed general fund tax levy is at an 8.6% increase, down 2.7% from the preliminary levy set in September. The debt tax levy is proposed at a 2.5% increase, down 1.4% from the preliminary levy set in September. The total tax levy is proposed at a 6.9% increase, down 2.3% from the preliminary levy set in September. This proposed levy increase means a $60 increase from 2025 on a home valued at $275,000. Mr. Jaunich reviewed preliminary tax levy increases in other cities for comparison data. Mr. Jaunich reviewed the tax levy allocation to departments. Mr. Jaunich also provided an updated 2026 fee schedule that will be considered for adoption. There were some increased user fees in certain areas. This information will be presented at the Truth in Taxation hearing on December 4, 2026. UNFINISHED BUSINESS NEW BUSINESS 10. APPROVE/DENY PURCHASE OF KOCK JEWELRY PROPERTY LOCATED AT 10 MAIN STREET SOUTH Miles Seppelt, EDA Director, presented before the Council. Mr. Seppelt explained that in order to preserve future opportunities for the redevelopment of the Jorgensen Hotel property, the EDA is proposing to purchase the Kock Jewelry property at 10 Main Street South for $310,000 plus $40,000 as a fixed payment in lieu of relocation benefits for a total acquisition price of $350,000. At this time, the developer, Titanium Partners intends to purchase the property and is scheduled to close on December 12, 2025, however in the event that does not occur, purchase by the EDA is the alternative plan. The main reason for the alternative plan is that the Kocks have informed Mr. Seppelt that if the property is not CITY COUNCIL MINUTES — November 25, 2025 performances, and other matters that manage the logistics of the organization. May include monitoring reports, policy development and governance process items.) 13. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS �a) City of Hutchinson Financial Report and Investment Report for October 2025 b) Planning Commission Minutes from October 21, 2025 MISCELLANEOUS 14. STAFF UPDATES Mike Stifter — Mr. Stifter noted that with the predicted snow this evening, staff will be working in the early morning tomorrow and perhaps downtown clean up dependent on the amount of snow. Mr. Jaunich noted that snow emergencies will be declared when all parked vehicles have to be removed from the roadways. There is a notification system in place for residents to opt in to. Matt Jaunich — Mr. Jaunich noted that city offices will be closed for the Thanksgiving holiday this Thursday and Friday. He reminded everyone of the Truth in Taxation hearing set for December 4, 2025, at 6:00 p.m. He also inquired of the Council about the December 23, 2025, City Council meeting and if there was a desire of the Council to move it for any reason. The Council agreed to leave the meeting as scheduled. 15. COUNCIL/MAYOR UPDATE Gary Forcier— Mayor Forcier noted that the Hutchinson HRA has fix -up funds available. He provided an update from the Airport Commission with information regarding improvements being completed on hangars and noted that jet fuel sales are going well. He announced that there are openings on various boards/commissions such as the Public Arts Commission, Charter Commission, and Sustainability Advisory Board. He encouraged interested people to complete a board interest form if they would like to be appointed. ADJOURNMENT Motion by May, second by Czmowski, to adjourn at 6:25 p.m. Motion carried unanimously. 5 To: Mayor and City Council From: Stephanie Nelson, HR/Admin Technician Date: December 9, 2025 Subject: 2026 License Renewals The following establishments have applied for 2026 license renewals. The appropriate paperwork has been submitted. Please approve the following licenses: On -Sale Intoxicating El Loro II Cobblestone Hotel & Suites Taxi Quality Transportation — Matt Reed On -Sale Sunda v Tobacco El Loro II Smokes 4 Less Hutch Cobblestone Hotel & Suites RA HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Items for Water Treatment Plant Osmosis Membrane Replacements (1-3/P26-03) Agenda Item: Department: PW/Eng LICENSE SECTION Meeting Date: 12/9/2025 Application Complete N/A Contact: Brandon Braithwaite Agenda Item Type: Presenter: Brandon Braithwaite Reviewed by Staff Consent Agenda Time Requested (Minutes): 0 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: City staff requests that the City Council approve the appropriate Resolutions to set a Public Hearing for the above referenced project letting at their January 13th (2026) meeting. Please note that this project will utilize Water Utility funds. The project was included in the 2025-2029 CIP. BOARD ACTION REQUESTED: Approval of Resolutions Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: $ 400,000.00 Total City Cost: $ 400,000.00 Funding Source: water utility Funds Remaining Cost: $ 0.00 Funding Source: FOE HUTCHINSON PUBLIC WORKS AND ENGINEERING City of Hutchinson Public Works Department Engineering 111 Hassan St SE Hutchinson, MN 55350 Phone (320) 234-4212 FEASIBILITY STUDY & ENGINEERING REPORT DATE: December 9, 2025 TO: Honorable Mayor & City Council members FROM: Brandon Braithwaite, City Engineer PROJECT: Water Treatment Plant Reverse Osmosis Membrane Replacements Having studied the following proposed improvement, Public Works staff finds that the proposed project is feasible and recommend that it be constructed: L3/P26-03 Water Treatment Plant Reverse Osmosis Membrane Replacements: Procurement of equipment to facilitate the regular replacement of the existing membranes (installation to be administered by City staff). ESTIMATED COSTS TOTAL Construction Cost (Materials) $ 400,000 TOTAL ESTIMATED COSTS $ 400,000 ESTIMATED FUNDING TOTAL City - Water Funds $ 400,000 TOTAL ESTIMATED FUNDING $ 400,000 RESOLUTION NO. 15945 RESOLUTION ORDERING PREPARATION OF REPORT ON IMPROVEMENT LETTING NO. 3/PROJECT NO. 26-03 WHEREAS, it is proposed to improve: Water Treatment Plant Reverse Osmosis Membrane Replacements: Procurement of equipment to facilitate the regular replacement of the existing membranes (installation to be administered by City staff), and to assess the benefited property for all or a portion of the cost of the improvement, pursuant to Minnesota Statutes, Chapter 429. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: THAT, the proposed improvement, called Letting No. 3/Project No. 26-03, be referred to the Engineer for study and that that person is instructed to report to the Council with all convenient speed advising the Council in a preliminary way as to whether the proposed improvement is necessary, cost-effective, and feasible; whether it should best be made as proposed or in connection with some other improvement; the estimated cost of the improvement as recommended; and a description of the methodology used to calculate individual assessments for affected parcels. Adopted by the Council this 9th day of December, 2025. Mayor: Gary Forcier City Administrator: Matthew Jaunich RESOLUTION NO. 15946 RESOLUTION RECEIVING REPORT AND CALLING HEARING ON IMPROVEMENT LETTING NO. 3/PROJECT NO. 26-03 WHEREAS, pursuant to a resolution of the Council adopted December 9th, 2025, a report has been prepared by Brandon Braithwaite, City Engineer with reference to the following proposed improvements: Water Treatment Plant Reverse Osmosis Membrane Replacements: Procurement of equipment to facilitate the regular replacement of the existing membranes (installation to be administered by City staff); and said report was received by the Council on December 9, 2025, and WHEREAS, the report provides information regarding whether the proposed improvement is necessary, cost-effective, and feasible; whether it should best be made as proposed or in connection with some other improvement; the estimated cost of the improvement as recommended; and a description of the methodology used to calculate individual assessments for affected parcels. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: 1. The Council will consider the improvement of such street(s) in accordance with the report and the assessment of abutting property for all or a portion of the cost of the improvement pursuant to Minnesota Statutes, Chapter 429 at an estimated total cost of the improvement of $400,000.00 2. A public hearing shall be held on such proposed improvement on the 13th day of January 2026, in the Council Chambers of the Hutchinson City Center at 5:30 PM and the Clerk shall give mailed and published notice of such hearing and improvement as required by law. Adopted by the Hutchinson City Council this 9th day of December 2025. Mayor: Gary Forcier City Administrator: Matthew Jaunich PUBLICATION NO.8611 NOTICE OF HEARING ON IMPROVEMENT LETTING NO. 3/PROJECT NO. 26-03 (L3P26-03) TO WHOM IT MAY CONCERN: Notice is hereby given that the City Council of Hutchinson, Minnesota, will meet in the Council Chambers of the Hutchinson City Center, 111 Hassan Street SE, Hutchinson, MN, at 5:30 pm on the 13th day of January, 2026, to consider the making of an improvement of Letting No. 3/Project No. 26-03, an improvement of: Water Treatment Plant Reverse Osmosis Membrane Replacements: Procurement of equipment to facilitate the regular replacement of the existing membranes (installation to be administered by City staff). pursuant to Minnesota Statutes, Sections 429.011 to 429.111. The estimated City cost of said improvement is $400,000.00 and an Assessable cost of $0.00 for the total estimated cost of $400,000.00. A reasonable estimate of the impact of the assessment will be available at the hearing. Such persons as desire to be heard with reference to the proposed improvement will be heard at this meeting. Dated: 12/09/2025 Matthew Jaunich, City Administrator PLEASE NOTE: IT IS IMPORTANT THAT YOU ATTEND THIS HEARING, WHETHER YOU ARE FOR OR AGAINST THE PROJECT, IN ORDER THAT YOUR COUNCIL CAN BE BETTER INFORMED OF A TRUE REPRESENTATION OF OPINION. PUBLISHED IN THE MCLEOD COUNTY CHRONICLE ON FRIDAY, JANUARY 2ND, 2026 AND FRIDAY, JANUARY 9TH, 2026. RA HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Consent to Accept MNDOT Aeronautics Grant for Airport Taxiway Repair Agenda Item: Department: Public Works LICENSE SECTION Meeting Date: 12/9/2025 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: We have been offered a 70/30 grant for asphalt work at the airport. This is a 2 part project that involves crack sealing of the taxiway and a mill and overlay of the asphalt surface around 3 of our 6 public hangars. Project costs will be $36,978 and $159,500 respectively with a match from MNDOT of $137,534.60. The balance of $58,943.40 will come from the miscellaneous infrastructure fund. BOARD ACTION REQUESTED: Approval of Resolution and Agreement Fiscal Impact: Funding Source: FTE Impact: Budget Change: New Bu Included in current budget: No PROJECT SECTION: Total Project Cost: $ 196,478.00 Total City Cost: $ 58,943.40 Funding Source: Miscellaneous Infrastructure Fund Remaining Cost: $ 137,534.60 Funding Source: MNDOT aeronautics M DEPARTMENT OF MnDOT Contract No.1061888 TRANSPORTATION STATE OF MINNESOTA STATE AIRPORTS FUND GRANT AGREEMENT This agreement is between the State of Minnesota, acting through its Commissioner of Transportation ("State"), and the City of Hutchinson, III HASSAN ST SE, HUTCHINSON, MN, 55350 ("Grantee"). RECITALS 1. Minnesota Statutes Chapter 360 authorizes State to provide financial assistance to eligible airport sponsors for the acquisition, construction, improvement, marketing, maintenance, or operation of airports and other air navigation facilities. 2. Grantee owns, operates, controls, or desires to own an airport ("Airport") in the state system, and Grantee desires financial assistance from the State for an airport improvement project (State Project 94304-49) ("Project"). 3. Grantee represents that it is duly qualified and agrees to perform all services described in this agreement to the satisfaction of the State. Pursuant to Minn.Stat.§ 1613.98, Subd. 1, Grantee agrees to minimize administrative costs as a condition of this Agreement. AGREEMENT TERMS 1. Term of Agreement, Survival of Terms, Project Plans, and Incorporation of Exhibits 1.1 Effective Date. This Agreement will be effective on the date the State obtains all required signatures under Minn. Stat.§ 1613.98, Subd. 5. As required by Minn.Stat.§ 1613.98 Subd. 7, no payments will be made to Grantee until this Agreement is fully executed. Grantee must not begin work under this Agreement until it is fully executed and Grantee has been notified by the State to begin the work. 1.2 Expiration Date. This Agreement will expire on June 30', 2030, or when all obligations have been satisfactorily fulfilled, whichever occurs first. 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, without limitation, the following clauses: Airport Operations, Maintenance and Conveyance; Transfer of Interest; Indemnification; State Audits; Government Data Practices and Intellectual Property; Workers Compensation; Publicity and Endorsement; Governing Law, Jurisdiction and Venue; and Data Disclosure. 1.4 Project Plans, Specifications, Descriptions. Grantee has provided the State with the plans, specifications, and a detailed description of the Project which are on file with the State's Office of Aeronautics and are incorporated into this Agreement by reference. 1.5 Exhibits. Exhibit(s) A through B are attached and incorporated into this Agreement. 2. Grantee's Duties 2.1 Project Completion and Changes. Grantee will complete the Project in accordance with the plans, specifications, and detailed description of the Project. Grantee will notify State's Authorized Representative in advance of any meetings taking place relating to the Project. Any changes to the plans or specifications of the Project after the effective date of this Agreement will be valid only if made by written amendment signed by the same parties who executed the original agreement, or their successors in office. 2,2 Registered Engineer Designation. If the Project involves construction, Grantee will designate a registered engineer to oversee the Project work. If, with the State's approval, Grantee elects not to have such services performed by a registered engineer, then Grantee will designate another responsible person to oversee such work. 2.3 Policy Compliance. Grantee will comply with all the required grants management policies and procedures of Minn.Stat.§16B.97, Subd.4(a)(1). Aero/CM State Airports Fund Grant Agreement (Updated 09/10/2025) MnDOT Contract #: 1061888 2.4 Publication of Grantee Contact Information. Under Minnesota Statute § 1613.98, if a grantee has a website, the names and contact information for the grant administrator(s) and organization's leadership must be clearly published. 2.5 Asset Monitoring. If Grantee uses funds obtained through this Agreement to acquire a capital asset, the Grantee is required to use that asset for a public aeronautical purpose for the normal useful life of the asset. Grantee may not sell or change the purpose of use for the capital asset(s) obtained with grant funds under this Agreement without prior written consent of the State and an amendment to this Agreement executed and approved by the same parties who executed and approved this Agreement, or their successors in office. 2.6 Airport Operations, Maintenance, and Conveyance. Pursuant to Minnesota Statutes §360.305, subd. 4(d)(1), Grantee must operate the Airport as a licensed, municipally -owned public airport at all times of the year for a period of 20 years from the date Grantee receives final reimbursement under this Agreement. The Airport must be maintained in a safe, serviceable manner for public aeronautical purposes only. 2.7 Transfer of Interest. Without prior written approval from the State, Grantee will not transfer, convey, encumber, assign, or abandon its interest in the Airport or in any real or personal property purchased or improved under this Agreement. If the State approves such a transfer or change in use, the State may impose, at its sole discretion, conditions and/or restrictions on such transfer, with which Grantee must comply. 3. Time. Grantee must comply with all the time requirements described in this Agreement. In the performance of this Agreement, time is of the essence. 4. Cost Participation and Payment 4,1 Cost Participation. Costs for the Project will be proportionate and allocated accordingly between the federal government, the State, and Grantee as described in Exhibit B. 4.1.1 Federal Funding. No federal funds are authorized for the Project. In the event federal reimbursement becomes available for the Project, the State will be entitled to recover from such federal funds an amount not to exceed the state funds advanced for this Project. No more than 95% of the amount due under this Agreement will be paid by the State until the State determines that Grantee has complied with all terms of this Agreement and furnished all necessary records. 4.2 Sufficiency of Funds. Pursuant to Minnesota Rule 8800.2500, Grantee certifies that: (1) it presently has sufficient unencumbered funds available to pay for its share of the Project; (2) it has the legal authority to engage in the Project as proposed; and (3) the Project will be completed without undue delay. 4.3 Total Obligation. The State's total obligation for all compensation and reimbursements to Grantee under this Agreement will not exceed $137,534.60. 4.4 Payment 4.4.1 Invoices. Grantee will submit invoices for payment by credit application via email. The form Grantee will use to submit invoices can be found on the Airport development forms website: https://www.dot.state.mn.us/aero/airportdevelopment/forms.html. The State's Authorized Representative, as named in this Agreement, will review each invoice against the approved grant budget and grant expenditures to -date before approving payment. The State will promptly pay Grantee after Grantee presents an itemized invoice for the services actually performed and the State's Authorized Representative accepts the invoiced services. Invoices must be submitted timely and according to the following schedule: Upon completion of the services. 4.4.2 All Invoices Subject to Audit. All invoices are subject to audit, at the State's discretion. 4.4.3 Expiration of Reimbursement. Grantee must submit all final invoices for reimbursement no later than ninety (90) calendar days after the expiration date of this Agreement. Any invoices received after this 90- day period will not be eligible for payment. 4.4.4 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 for services performed. If an invoice is incorrect, defective or Aero/CM State Airports Fund Grant Agreement (Updated 09/10/2025) MnDOT Contract #: 1061888 otherwise improper, the State will notify Grantee within ten (10) days of discovering the error. After the State receives the corrected invoice, the State will pay Grantee within thirty (30) days of receipt of such invoice. 4.4.5 Grantee Payment Requirements. Grantee must pay all Project contractors promptly. Grantee will make undisputed payments no later than thirty (30) days after receiving an invoice. If an invoice is incorrect, defective, or otherwise improper, Grantee will notify the contractor within ten (10) days of discovering the error. After Grantee receives the corrected invoice, Grantee will pay the contractor within thirty (30) days of receipt of such invoice. 4.4.6 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. 4.4.6.1 The State's Authorized Representative will notify Grantee's Authorized Representative where and when any monitoring visit and financial reconciliation will take place, which state employees and/or contractors will participate, and which Grantee staff members should be present. Grantee will be provided notice prior to any monitoring visit or financial reconciliation. 4.4.6.2 Following a monitoring visit or financial reconciliation, Grantee will take timely and appropriate action on all deficiencies identified by the State. 4.4.6.3 At least one monitoring visit and one financial reconciliation must be completed prior to final payment being made to Grantee. 4.4.7 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. 4.4.8 Closeout Deliverables. At the close of the Project, Grantee must provide the following deliverables to the State before the final payment will be released by the State: 4.4.8.1 Electronic files of construction plans as both PDF and MicroStation compatible formats. 4.4.8.2 Electronic files of as-builts as both PDF and MicroStation compatible formats. 4.4.8.3 Electronic files of planning documents, including without limitation, airport layout plans and airport zoning plans, as PDF, MicroStation and GIS compatible formats. 4.5 Contracting and Bidding Requirements. Prior to publication, Grantee will submit to the State all solicitations for work to be funded by this Agreement. Prior to execution, Grantee will submit to the State all contracts and subcontracts between Grantee and third parties to be funded by this Agreement. The State's Authorized Representative has the sole right to approve, disapprove, or modify any solicitation, contract, or subcontract submitted by Grantee. All contracts and subcontracts between Grantee and third parties must contain all applicable provisions of this Agreement. The State's Authorized Representative will respond to a solicitation, contract, or subcontract submitted by Grantee within ten (10) business days. 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 the State's Authorized Representative and in accordance with all applicable federal, state, and local laws, ordinances, rules, and regulations. Grantee will not receive payment for work found by the State to be unsatisfactory or performed in violation of federal, state, or local law. No more than 95% of the amount due to Grantee under this Agreement will be paid by the State until it determines that Grantee has complied with all terms and conditions of this Agreement and has furnished all necessary records. 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. Aero/CM State Airports Fund Grant Agreement (Updated 09/10/2025) MnDOT Contract 4: 1061888 Authorized Representatives 6.1 The State's Authorized Representative is: Jason Radde, Senior Engineer - Central, 395 JOHN IRELAND BOULEVARD, MS 410 ST. PAUL, MINNESOTA 55155-1800, 612-718-9158, jason.radde@state.mn.us, or their successor. The State's Authorized Representative, or their designee, is responsible for monitoring Grantee's performance and is authorized to accept the services provided under this Agreement. If the services are satisfactory, the State's Authorized Representative will certify acceptance on each invoice submitted for payment. 6.2 Grantee's Authorized Representative is: Matt Jan nich, City Administrator, 111 HASSAN ST SE, HUTCHINSON, MN, 55350, 320-234-5650, miaunich(a,hutchinsommn.eov, or their successor. If Grantee's Authorized Representative changes at anytime during the term of this agreement, Grantee must immediately notify the 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 written 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. Any 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, that failure does not waive the provision or the State's right to subsequently enforce it. 7.4 Agreement Complete. This Agreement contains all negotiations and agreements between the State and Grantee. No other 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 and will not be responsible for the acts or omissions of others, or the results thereof. 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 (including reasonable attorneys' fees), and expenses 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 other third parties under the direct control of Grantee. State Audits. Under Minn. Stat. § 1613.98 Subd. 8, the books, records, documents, and accounting procedures and practices of Grantee, or those of any other party relevant to this Agreement, or transactions resulting from this Agreement, are subject to examination by the State and/or the State Auditor, Legislative Auditor, or Attorney General as appropriate, for a minimum of six (6) years from: (1) the expiration or termination of this Agreement, (2) the receipt and approval of all final reports, or (3) the period of time required to satisfy all state and program retention requirements (available at: https://edocs- public.dot.state.mn.us/edocs public/DMResultSet/download?docId=10358099), whichever is later. Grantee will take timely and appropriate action on all deficiencies identified by an audit. 10. Government Data Practices and Intellectual Property Rights 10.1 Government Data Practices. Grantee and the State must comply with the Minnesota Government Data Practices Act, Minn. Stat. Ch. 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 Minn. Stat. § 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 Aero/CM State Airports Fund Grant Agreement (Updated 09/10/2025) 4 MnDOT Contract #: 1061888 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. 10.2 Intellectual Property Rights. 10.2.1 Ownership. The State owns all rights, title and interest in all of the intellectual property rights, including copyrights, patents, trade secrets, trademarks and service marks in the Works and Documents created and paid for under this Agreement. "Works" means all inventions, improvements, discoveries (whether or not patentable), databases, computer programs, reports, notes, studies, photographs, negatives, designs, drawings, specifications, materials, tapes and disks conceived, reduced to practice, created or originated by Grantee, its employees, agents and subcontractors, either individually or jointly with others in the performance of this Agreement. Works includes Documents. "Documents" are the originals of any databases, computer programs, reports, notes, studies, photographs, negatives, designs, drawings, specifications, materials, tapes, disks or other materials, whether in tangible or electronic forms, prepared by Grantee, its employees, agents or subcontractors, in the performance of this Agreement. The Documents will be the State's exclusive property, and Grantee must immediately return all such Documents to the State upon completion or cancellation of this Agreement. To the extent possible, those Works eligible for copyright protection under the United States Copyright Act will be deemed to be "works made for hire." Grantee assigns all right, title and interest it may have in the Works and the Documents to the State. Grantee must, at the request of the State, execute all papers and perform all other acts necessary to transfer or record the State's ownership interest in the Works and Documents. 10.2.2 Obligations 10.2.2.1 Notification. Whenever any invention, improvement or discovery (whether or not patentable) is made or conceived for the first time or actually or constructively reduced to practice by Grantee, including its employees and subcontractors, in the performance of this Agreement, Grantee will immediately give the State's Authorized Representative written notice thereof and must promptly furnish the State's Authorized Representative with complete information and/or disclosure thereon. 10.2.2.2 Representation. Grantee must perform all acts and take all steps necessary to ensure that all intellectual property rights in the Works and Documents are the sole property of the State and that neither Grantee nor its employees, agents or subcontractors retain any interest in and to the Works and Documents. Grantee represents and warrants that the Works and Documents do not and will not infringe upon any intellectual property rights of other persons or entities. Other indemnification obligations of this Agreement notwithstanding, Grantee will indemnify, defend, to the extent permitted by the Attorney General, and hold harmless the State from any action or claim brought against the State to the extent such action is based on a claim that all or part of the Works or Documents infringe upon the intellectual property rights of others. Grantee will be responsible for payment of any and all such claims, demands, obligations, liabilities, costs and damages, including but not limited to, attorneys' fees. If such a claim or action arises, or in either parry's opinion is likely to arise, Grantee, at the State's discretion, must either: (1) procure for the State the right or license to use the intellectual property rights at issue, or (2) replace or modify the allegedly infringing Works or Documents as necessary and appropriate to obviate the infringement claim. This remedy of State will be in addition to and not exclusive of other remedies provided by law. 11. Workers' Compensation. Grantee certifies that it is in compliance with Minn. Stat. § 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. 12. Publicity and Endorsement 12.1 Publicity. Any publicity regarding the subject matter of this Agreement must identify the State as the sponsoring agency and must not be released without prior written approval from the State's Authorized Representative. For purposes of this provision, publicity includes notices, informational pamphlets, press Aero/CM State Airports Fund Grant Agreement (Updated 09/10/2025) MnDOT Contract #: 1061888 releases, research, reports, signs, and similar public notices prepared by or for Grantee individually or jointly with others, or any subcontractors, with respect to the program, publications, or services provided resulting from this Agreement. All projects primarily funded by state grant appropriation must publicly credit the State of Minnesota, including on Grantee's website when practicable. 12.2 Endorsement. Grantee must not claim that the State endorses its products or services. 13. 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. 14. Termination; Suspension 14.1 Termination. 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 i£ 14.3.1 It does not obtain funding from the Minnesota Legislature; or 14.3.2 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: 14.4.1 In the event of a total or partial government shutdown due to its failure to pass an approved budget by the legal deadline. Asset Acquisitions completed by the Grantee during a period of suspension will be deemed unauthorized and undertaken at risk of non-payment; or 14.4.2 If funding is canceled, withdrawn, or terminated, the State may suspend its performance until funding is restored. Suspension of performance under these circumstances will be temporary until funds become available again and does not release the State from its obligations under this Agreement. 15. Data Disclosure. Under Minn. Stat. 270C.65 subd. 3, and other applicable law, Grantee consents to disclosure of its social security number, federal employer tax identification number, and/or Minnesota tax identification number, already provided to the State, to federal and state tax agencies and state personnel involved in the payment of state obligations. These identification numbers may be used in the enforcement of federal and state tax laws which could result in action requiring Grantee to file state tax returns and pay delinquent state tax liabilities, if any. 16. 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. Aero/CM State Airports Fund Grant Agreement (Updated 09/10/2025) MnDOT Contract #: 1061888 17. Discrimination Prohibited by Minnesota Statutes §181.59. Grantee will comply with the provisions of Minnesota Statutes § 181.59 which requires that every contract 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: I T I In the hiring of common or skilled labor for the performance of any work under any contract, or any subcontract, no Grantee, material supplier or vendor, 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; 17.2 No Grantee, material supplier, or vendor, 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 contract on account of race, creed or color; 17.3 A violation of this Section is a misdemeanor; and 17.4 This Agreement may be canceled or terminated by the State, or any county, city, town, township, school, school district or any other person authorized to enter into agreements for employment, and all money due, or to become due under said agreements, may be forfeited for a second or any subsequent violation of the terms or conditions of this Agreement. 18. Limitation. Under this Agreement, the State is only responsible for receiving and 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 contracts with such entities. Grantee's consultants and contractors are not intended to be third party beneficiaries of this Agreement. 19. Telecommunications Certification. By signing this Agreement, Grantee certifies that, consistent with Section 889 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019, Pub. L. 115-232 (Aug. 13, 2018), and 2 CFR 200.216, Grantee will not use funding covered by this Agreement to procure or obtain, or to extend, renew, or enter into any contract to procure or obtain, any equipment, system, or service that uses "covered telecommunications equipment or services" (as that term is defined in Section 889 of the Act) as a substantial or essential component of any system or as critical technology as part of any system. Grantee will include this certification as a flow down clause in any contract related to this Agreement. 20. Title VI/Non-discrimination Assurances. Grantee agrees to comply with all applicable US DOT Standard Title VI/Non-Discrimination Assurances contained in DOT Order No. 1050.2A, and in particular Appendices A and E, which can be found at: https://edocs-public.dot.state.mn.us/edocs public/DMResultSet/download?docId=11149035. Grantee will ensure the appendices and solicitation language within the assurances are inserted into contracts as required. The State may conduct a review of Grantee's compliance with this provision. Grantee must cooperate with the State throughout the review process by supplying all requested information and documentation to the State, making Grantee staff and officials available for meetings as requested, and correcting any areas of non-compliance as determined by the State. 21. Additional Provisions [Intentionally left blank.] [The remainder of this page has intentionally been left blank.] Aero/CM State Airports Fund Grant Agreement (Updated 09/10/2025) MnDOT ENCUMBRANCE VERIFICATION The individual certifies funds have been encumbered as required by Minn. Stat. 16A.15 and 16C.05. By: Date: SWIFT Contract # SWIFT Purchase Order # GRANTEE Grantee certifies that the appropriate person(s) have executed the Agreement on behalf of Grantee as required by applicable articles, bylaws, resolutions, or ordinances. By: Title Date: Un Title: Date Aero/CM State Airports Fund Grant Agreement (Updated 09/10/2025) MnDOT Contract #: 1061888 COMMISSIONER OF TRANSPORTATION as delegated Lo Date: MnDOT CONTRACT MANAGEMENT Date: Docusign Envelope ID: 679D7C21-08F8-48D4-ABE4-17F5859A8389 EXHIBIT A HUTCHINSON PUBLIC WORKS AND ENGINEERING November 18, 2025 Mr. Jason Radde Airport Regional Engineer MnDOT Office of Aeronautics 395 John Ireland Boulevard St. Paul, MN 55155 RE: Grant Application Hutchinson Municipal Airport (HCD) South Hangar Taxilanes Rehabilitation Taxiway A Crack Repair Dear Mr. Radde: Please find enclosed the quotes for the aforementioned projects to be completed at the Hutchinson Municipal Airport located in Hutchinson, Minnesota: The South Hangar Taxilanes Rehabilitation project is to complete a mill and overlay of the bituminous pavement. The Taxiway A Crack Repair project is to repair random cracks. The city of Hutchinson requests a State grant agreement in the amount of $137,534.60 for the aforementioned projects. If you need any further information or documentation, please feel welcome to contact me at dschuetteCcDhutchinsommn.gov or (320) 583-8982. Sincerely, Signed by: 0bin bvuUn. S( 461SMette Public Works Manager cc: Travis Haskell, MnDOT Aeronautics Arika Johnson, MnDOT Aeronautics Silas Parmar, Bolton & Menk, Inc. Enclosures: • South Hangar Taxilanes Rehabilitation Quote • Taxiway A Crack Repair Quote • MnDOT Cost Split Docusign Envelope ID: 679D7C21-08F8-48D4-ABE4-17F5859A8389 Quote HANSON PAVING 3636 QUAIL RD NE SAUK RAPIDS, MN 56379 (320) 259-7874 Hutchinson Public Works Attn: Donovan Schuette If you have any questions please contact Jeff at 320-249-1290 HANSON PAVING Customer Phone 320-583-8982 Description Paving Project for Hutchinson MN Airport Approximately 12,520 Sq yards Price includes: Mill 1.5 inches of existing asphalt Sweep, Tac, and Pave 1.5 inches of new asphalt overlay Improvement - No Sales Tax Chargeable Date Estimate # 11/4/2025 17592 Member Since 2007 Quote good for 30 days Cash, check, credit card accepted. Please note a 2% processing fee will be applied to any credit card transactions. Qty Cost Total 159,500.00 159, 500.00 0.00% 0.00 **It can take up to 2 years for asphalt to fully cure hard **New asphalt may be parked on after 14 days but be careful on sunny days as the asphalt when curing will get soft. **Do NOT put tables and chairs on newly laid asphalt. **New asphalt may be driven ACROSS after 2 to 3 days but not parked on ** After Seal Coat application wait 2 full days before using the driveway **OWNER RESPONSIBLE FOR ALL SPRINKLER HEADS AND PRIVATE UTILITIES **NO BLACK DIRT, SEED, OR SOD INCLUDED **SOME JOBS MAY REQUIRE DRAINAGE CORRECTION INTO GRASS/LAWN AREA **CANNOT GUARANTEE COMPLETE DRAINAGE WITHOUT A 2% SLOPE **PERMITS NOT INCLUDED **NOT RESPONSIBLE FOR DAMAGE TO EXISTING ASPHALT/CONCRETE THAT WE MAY HAVE TO CROSS HANSON PAVING ASPHALT WARRANTY By signing this quote you are accepting the payment terms (including an 5 year warranty on major deterioration of asphalt > g g q y p g p Y li y I year warranty on spider cracking accrued finance charges) and agreeing to be personally liable for the obligations Within the first year it is possible for the asphalt to get relief Signature & Date cracks - these are not warrantied. Relief cracks may occur due to freezing during winter. Seal coat applications are not warrantied. Docusign Envelope ID: 679D7C21-08F8-48D4-ABE4-17F5859A8389 PROPOSAL/CONTRACT Job. No. CORPORATE OFFICE 2800 Mecca Drive • Plover, WI 54467 phone 715.341.2868 • toll -free 800.332.3360 fax 715.341.1054 751 N Bluemound Drive • Appleton, WI 54914 phone 920.759.1008 • fax 920,759.1019 6615 US Highway 12 W • Eau Claire, WI 54703 hone 715.874.6070 • fax 715.874.6717 / ■ FAHRNER asphalt"'Wsealerstt. Pavement Maintenance Contractors EOE, including disability/vets Date: September 29, 2025 914 Commercial Court • Onalaska, WI 54650 phone 608.779.6641 • fax 608.779.6813 316 Raemisch Road • Waunakee, WI 53597 phone 608.849.6466 • fax 608.849.6470 111 Anderson Road • Iron River, MI 49935 phone 906.265.6770 • fax 906.265.5719 2224 Veterans Memorial Pkwy • Saginaw, MI 48601 phone 989.752.9200 • fax 989.752.9205 Contact Name: Donovan Schuette Contract Price $36,978.00 PURCHASER: CITY OF HUTCHINSON TELEPHONE: (320) 583-8982 ADDRESS: 111 HASSAN STREET S.E. DESCRIPTION OF PROPERTY: HUTCHINSON, MN 55350 HUTCHINSON MUNICIPAL AIP 1700 Butler Field SW HUTCHINSON, MN 55350 1. FAHRNER Asphalt Sealers, L.L.C. (CONTRACTOR) and PURCHASER agree that, CONTRACTOR shall furnish the labor and materials to complete certain construction in accordance with the following specifications: This proposal includes Crackfill and Mastic of the Hutchinson Municipal Airport Taxiway ONLY. Area included shown on the attached map. Specification: -Crackfill : Rout out cracks to a 3/4 x 3/4 ratio width versus depth. Blow out and clean cracks with compressed air and heat lance. Seal cracks with a rubberized asphalt crack sealant. Crackfilling does not include alligatored areas. -Mastic : Blow out and clean cracks with compressed air and heat lance. Seal and Level cracks with Mastic. This proposal may be withdrawn if not accepted and received by CONTRACTOR within 15 days of the date above and/ or at any time before performance of the work hereunder upon CONTRACTOR'S determination that the PURCHASER is not creditworthy. 2. If proposal is accepted please sign, retain one copy and forward a copy to our office. 3. The undersigned ("PURCHASER") agrees to pay CONTRACTOR the total price of $36,978.00 and/or the unit prices specified above for the labor and materials specified above which payment shall be due upon completion of each stage of work. PURCHASER acknowledges that the specifications, conditions and price quotes specified above are satisfactory and hereby accepted. By my signature herein, I authorize CONTRACTOR to review personal OR business Credit Reports to evaluate financial readiness to pay amounts set forth in this Proposal/Contract. Acceptance of this Proposal includes acceptance of all the terms and conditions on back. CONTRACTOR: PURCHASER: Fahrner Asphalt Sealers, LLC:763-482-9640 I have read and understand the terms and conditions on both sides lucas.chapman@fahrnerasphalt.com of this contract. Lucas C By: (PRINT OR TYPE NAME) (CONTRACTOR REPRESENTATIVE) By: (PRINT OR TYPE NAME) (PURCHASER AUTHORIZED REPRESENTATIVE) Date: September 29, 2025 Date of acceptance: EXHIBIT B Airport: Hutchinson Municipal Airport Ident: HCD Sponsor: City of Hutchinson, MN State Project: A4304-49 State Agreement a: 1061888 Description: South Hangar Taxilanes Rehabilitation & Taxiway A Crack Repair Version Date: 12/1/2025 Construction Description Total State Funding Rate State Local South Hangar Taxilanes Rehabilitation - Hanson Paving $ 159,500.00 70% $ 111,650.00 $ 47,850.00 TaxiwayACrack Repair- Fahrner Asphalt Sealers $ 36,978.00 70% $ 25,884.60 $ 11,093.40 $ - 70% $ - $ - CONSTRUCTION SUBTOTAL $ 196,478.00 $ 137,534.60 $ 58,943.40 Engineering Description Total State Local $ 70% $ $ $ 70% $ $ $ 70% $ $ ENGINEERING SUBTOTAL $ - $ - $ Administration Description Total State Local $ 70% $ $ $ 70% $ $ $ 70% $ $ ADMINISTRATION SUBTOTAL $ - $ - $ Grant Amounts $ 196,478.00 $ 137,534.60 $ 58,943.40 Grant Percentages 100.00% 70.00% 30.00% RESOLUTION NO. 15950 APPROVING STATE AIRPORT FUND 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 a State Airport Fund grant by the Minnesota Department of Transportation, Agreement Number 1061888 ("Agreement"); • That it hereby agrees to the terms and conditions of the Agreement; and • That the proper signing officers are hereby authorized to execute the above -referenced Agreement and any amendments thereto on behalf of the City of Hutchinson. Adopted by the City of Hutchinson on this 9th day of _December 2025. [GRANTEE NAME] Print Name: Title/Date: ATTESTATION: (different authorized signer than above) Print Name: Title/Date: Resolution Approving Grant (Updated 9.30.2025) CHECK REGISTER A FOR CITY OF HUTCHINSON CHECK DATES 11/26/25-12/9/25 Check Date Check# Name Description Amount 11/28/2025 EFT EFTPS Payroll Report 11/9/25-11/22/25 79,206.18 11/28/2025 EFT MN Dept of Revenue Payroll Report 11/9/25-11/22/25 16,043.50 11/28/2025 EFT VOYA (Hutch City of) Payroll Report 11/9/25 - 11/22/25 300.00 11/28/2025 EFT Child Support Payroll Report 11/9/25 - 11/22/25 276.88 11/28/2025 EFT UNUM Voluntary Insurance Payroll Report 11/9/25-11/22/25 317.07 11/28/2025 EFT PERA Payroll Report 11/9/25-11/22/25 67,922.21 11/28/2025 EFT Health Equity Payroll Report 11/9/25-11/22/25 18,093.85 11/28/2025 EFT UNUM Life & ADD Insurance Payroll Report 11/9/25 - 11/22/25 1,026.01 11/28/2025 EFT Mission Square Payroll Report 11/9/25-11/22/25 3,778.66 11/28/2025 EFT VOYA (CITY OF HUTCH) Payroll Report 11/9/25 - 11/22/25 250.00 11/28/2025 303788 Manual Employee Check Payroll Report 11/9/25-11/22/25 54.63 11/28/2025 303789 Manual Employee Check Payroll Report 11/9/25-11/22/25 52.75 11/28/2025 303790 HART Payroll Report 11/9/25-11/22/25 521.53 11/28/2025 303791 LELS Union Dues Payroll Report 11/9/25 - 11/22/25 292.00 11/28/2025 303792 MNPEA Payroll Report 11/9/25-11/22/25 720.00 12/9/2025 303793 BURICH, JORDAN UB REFUND 40.09 12/9/2025 303794 FENSKE, DAVID UB REFUND 132.34 12/9/2025 303795 GEHRKE, ERIC UB REFUND 171.89 12/9/2025 303796 KENNEY,THOMAS UB REFUND 0.67 12/9/2025 303797 KENNEY,THOMAS UB REFUND 89.00 12/9/2025 303798 MICKA, BARBARA UB REFUND 49.10 12/9/2025 303799 MOELLERS, LUCAS & SARANYA UB REFUND 19.99 12/9/2025 303800 REINER, CHARLES & DORIS UB REFUND 76.46 12/9/2025 303801 STIRAS, LARRY UB REFUND 41.70 12/9/2025 303802 ACE HARDWARE -1315 REPAIR & MAINT SUPPLIES- MULTIPLE DEPTS 479.98 12/9/2025 303803 ACE HARDWARE -1790 TANKER 4 PUMP VALVE, SUPPLIES - FIRE 115.98 12/9/2025 303804 ALLEGION ACCESS TECHNOLOGIES LLC ADA DOOR SERVICE - SENIOR DINING 895.69 12/9/2025 303805 AM ENT, ADAM REIMB: STAFF& COMMAND TRAINING - POLICE 638.40 12/9/2025 303806 AMERICAN WELDING & GAS FIRE EXTINGUISHERS ANNUAL-ARENA/REC 468.62 12/9/2025 303807 AMSDEN LAWN & TREE SERVICE SMALL STORAGE CONTAINER - FIRE 2,500.00 12/9/2025 303808 ARTISAN BEER COMPANY COST OF GOODS SOLD - LIQUOR HUTCH 974.50 12/9/2025 303809 AUTO VALUE - GLENCOE O-RINGS - HATS 95.88 12/9/2025 303810 BELLBOY CORPORATION COST OF GOODS SOLD - LIQUOR HUTCH 1,891.91 12/9/2025 303811 BERNICK'S COST OF GOODS SOLD - LIQUOR HUTCH 493.78 12/9/2025 303812 BOBBING BOBBER BREWING CO COST OF GOODS SOLD - LIQUOR HUTCH 276.88 12/9/2025 303813 BOLTON & MENK INC LAKES AND RIVERS - ENG 12,648.50 12/9/2025 303814 BREAKTHRU BEVERAGE MN WINE & SPIRITS COST OF GOODS SOLD - LIQUOR HUTCH 9,907.47 12/9/2025 303815 BROUCEK, DANIEL REIMB: SAFETY FOOTWEAR-CREEKSIDE 155.49 12/9/2025 303816 BS&A SOFTWARE LLC BUILDING DEPT SOFTWARE CONVERSION BACK TO OLD SOFTWARE 9,853.00 12/9/2025 303817 C & L DISTRIBUTING COST OF GOODS SOLD - LIQUOR HUTCH 56,978.44 12/9/2025 303818 CARS ON PATROL SHOP LLC TRAINING AUTO EX CARS - FIRE 375.00 12/9/2025 303819 CENTRAL HYDRAULICS STOCK, HOSE - MULTIPLE DEPTS 622.20 12/9/2025 303820 CENTRAL MCGOWAN CUT OFF WHEEL - HATS 291.40 12/9/2025 303821 CENTRAL UNITED COOPERATIVE HATS UNLEADED 19,855.09 12/9/2025 303822 CINTAS CORPORATION SUPPLIES & SERVICE - MULTIPLE DEPTS 665.38 12/9/2025 303823 CREAM CITY PALLET PARTNERS LLC BAGGING PALLETS - CREEKSIDE 2,850.00 12/9/2025 303824 CRESTED RIVER COST OF GOODS SOLD - LIQUOR HUTCH 190.00 12/9/2025 303825 CROW RIVER FLORAL&GIFTS BABY ARRANGEMENT -ENG 58.00 12/9/2025 303827 CROW RIVER WINERY COST OF GOODS SOLD - LIQUOR HUTCH 691.60 12/9/2025 303828 DAHLHEIMER BEVERAGE COST OF GOODS SOLD - LIQUOR HUTCH 54,918.84 12/9/2025 303829 DESIGN ELECTRIC INC ELECTRICAL SERVICE - MULTIPLEDEPTS 3,308.24 12/9/2025 303830 DISPLAY SALES HOLIDAY DECORATIONS FOR LIBRARY SQUARE 620.00 12/9/2025 303831 E2 ELECTRICAL SERVICES INC AIR COMPRESSOR WIRING - WWTP 303.75 12/9/2025 303832 ECOLAB PEST ELIMINATION RODENT PROGRAM - CREEKSIDE 235.56 12/9/2025 303833 EHLERS TIF DISTRICT 4-25, BONDS - MULTIPLE DEPTS 9,500.00 12/9/2025 303834 ELECTRO WATCHMAN ALARMSERVICE-LIBRARY 35.00 12/9/2025 303835 FARM -RITE EQUIPMENT SERVICE, PARTS - PARKS 4,948.33 12/9/2025 303836 FASTENAL COMPANY ZIP TIES, SUPPLIES - PARKS 278.31 12/9/2025 303837 FORCE AMERICA DISTRIBUTING LLC MS441TENCLOSURE, LEVEL SENDER -STREETS 2,669.90 12/9/2025 303838 FOSTER MECHANICAL HVAC MAINT, REPAIRS - MULTIPLE DEPTS 1,724.29 12/9/2025 303839 FRANDLE,BRUCE REIMB: SAFETY FOOTWEAR-WWTP 112.50 12/9/2025 303840 FUZE LOGISTICS SERVICES USA INC CREEKSIDE BAGGED FREIGHT 9,325.00 12/9/2025 303841 GALLS LLC TROUSERS - POLICE 144.95 12/9/2025 303842 GAMETIME FIREMANS PARK SWING 2,449.48 12/9/2025 303843 GARAGE DOOR STORE REPAIRED TIP BLDG DOORS 3 AND 4 -CREEKSIDE 710.00 12/9/2025 303844 GARTNER REFRIGERATION INC SERVICE CALL -ARENA 2,797.87 12/9/2025 303845 GRAINGER REPAIR& MAINT SUPPLIES - MULTIPLEDEPTS 1,095.22 12/9/2025 303846 GREEN EARTH LAWN CARE INC CONTRACTED LAWN SERVICE - EDA 72.00 12/9/2025 303847 HACH COMPANY HACH REAGENTS - WATER 263.70 12/9/2025 303848 HAWKINS INC FERRIC CHLORIDE -WWTP 12,054.59 12/9/2025 303849 HILLYARD/HUTCHINSON REPAIRS, SUPPLIES - MULTIPLEDEPTS 1,738.36 12/9/2025 303850 HIRSCH, JOANN R TRANSCRIPT PROCESSING FEE - LEGAL 255.00 CHECK REGISTER A FOR CITY OF HUTCHINSON CHECK DATES 11/26/25-12/9/25 Check Date Check# Name Description Amount 12/9/2025 303851 HOME CITY ICE COMPANY COST OF GOODS SOLD - LIQUOR HUTCH 119.30 12/9/2025 303852 HUTCHINSON AREA CHAMBER OF COMMERCE EVENT- LIQUOR HUTCH 525.00 12/9/2025 303853 HUTCHINSON CHAMBER & TOURISM OCT LODGING TAX 13,102.98 12/9/2025 303854 HUTCHINSON WHOLESALE #1550 BRAKE PARTS CLEANER/SILICONE - HATS 88.42 12/9/2025 303855 HUTCHINSON WHOLESALE #2520 TANKER 4 EXHAUST WRAP, SUPPLIES - FIRE 63.34 12/9/2025 303856 ISD #423 OCTOBER 2025 ECFE/COMM ED - REC 4,664.05 12/9/2025 303857 JEFFERSON FIRE & SAFETY INC FLIRTHERMALCAMERA - FIRE 903.18 12/9/2025 303858 JOHNSON BROTHERS LIQUOR CO COST OF GOODS SOLD - LIQUOR HUTCH 27,997.87 12/9/2025 303859 JOMAS HILL WINERY COST OF GOODS SOLD - LIQUOR HUTCH 432.00 12/9/2025 303860 KERBER,ADAM REIMB:SEMIFUEL- CREEKSIDE 100.00 12/9/2025 303861 KERI'S CLEANING & HANDYMAN SERVICES CONTRACTED JANITORIAL- MULTIPLE FACILITIES 8,569.20 12/9/2025 303862 KRANZ LAWN & POWER CHAIN SAW OIL, PARTS - PARKS 101.47 12/9/2025 303863 KTREES & NURSERY LLC CHRISTMAS TREE AT LIBRARY SQUARE FOUNTAIN 275.00 12/9/2025 303864 LIND HOUSE ASSOCIATION DEC 2025LINDHOUSE -SR TOURS 2,025.00 12/9/2025 303865 LYNN HUSTLERS 4H CLUB COMPOST BAGS 500.00 12/9/2025 303866 MATTSON, MARIAH WATER BILL REFUND 32.60 12/9/2025 303867 MCLEOD COUNTY FIRE CHIEFS ASSN ANNUAL COUNTY ACTIVE 911 DUES - FIRE 582.20 12/9/2025 303868 MCLEOD COUNTY PUBLIC WORKS FINAL PMTJEFFERSON ST/AIRPORT RD 26,735.62 12/9/2025 303869 MENARDS HUTCHINSON REPAIR & MAINT SUPPLIES - MULTIPLE DEPTS 793.74 12/9/2025 303870 MINNESOTA DEPT OF HEALTH STATE FEE - WATER CONNECTIONS 12,512.00 12/9/2025 303871 MINNESOTA DEPT OF HEALTH 2O26 LICENSE RENEWALS 1,585.00 12/9/2025 303872 MINNESOTA MUNICIPAL BEVERAGE ASSOC SERVER TRAINING - LIQUOR HUTCH 300.00 12/9/2025 303873 MINNESOTA VALLEY TESTING LAB LAB SAMPLE TESTING - MULTIPLEDEPTS 969.60 12/9/2025 303874 MITYLITE INC NEW TABLE AND CHAIRS - REC CTR 11,980.12 12/9/2025 303875 MN STATE FIRE CHIEFS ASSOCIATION MSFCA CONF REG - FIRE 700.00 12/9/2025 303876 MORGAN CREEK VINEYARDS COST OF GOODS SOLD - LIQUOR HUTCH 390.00 12/9/2025 303877 NEUBARTH TOWING & RECOVERY TOWING IMPOUND FROM SENECA -POLICE 233.00 12/9/2025 303878 NEW FRANCE WINE COST OF GOODS SOLD - LIQUOR HUTCH 527.00 12/9/2025 303879 NEWMAN SIGNS INC STREET SIGN - STREETS 125.44 12/9/2025 303880 NMS LABS RETURN SPECIMIN - POLICE 66.00 12/9/2025 303881 NOGA, MICHAEL REFUND: WATER BILL 121.03 12/9/2025 303882 OFFICE DEPOT OFFICE SUPPLIES - MULTIPLE DEPTS 185.39 12/9/2025 303883 PALLET SERVICE CORPORATION BAGGING PALLETS - CREEKSIDE 6,396.00 12/9/2025 303884 PARK NICOLLET CLINIC CAM - EVENT CTR 1,500.00 12/9/2025 303885 PAUSTIS WINE COMPANY COST OF GOODS SOLD - LIQUOR HUTCH 1,846.50 12/9/2025 303886 PEAT INC SPHAGNUM PEAT BULK - CREEKSIDE 10,800.00 12/9/2025 303887 PEOPLEREADY INC CREEKSIDE TEMP STAFFING 3,428.88 12/9/2025 303888 PHILLIPS WINE & SPIRITS COST OF GOODS SOLD - LIQUOR HUTCH 12,634.55 12/9/2025 303889 PLUNKETTS PEST CONTROL PEST CONTROL -ARENA 114.37 12/9/2025 303890 PREMIER TECH CHRONOS BAGGERPARTS- CREEKSIDE 671.84 12/9/2025 303891 PREMIUM WATERS SERVICE FEE FOR WATER SERVICE - PARKS 10.99 12/9/2025 303892 PRO AUTO MN INC OIL CHANGES - PARKS 240.33 12/9/2025 303893 QUADE INVESTMENTS LLC FACADE IMPV GRANT- EDA 4,400.00 12/9/2025 303894 RECYCLING ASSOCIATION OF MINNESOTA MEMBERSHIP RENEWAL - CREEKSIDE 300.00 12/9/2025 303895 REVIER WELDING MS932XVACRPR-CREEKSIDE 301.90 12/9/2025 303896 RICE LAKE CONSTRUCTION GROUP 1-3/P24-09 WWTF SOLIDS IMPV PROJECT 151,051.48 12/9/2025 303897 ROSE TRUCKING INC ANNUAL DOTINSPEC,REPAIRS - CREEKSIDE 3,564.50 12/9/2025 303898 RUNNING'S SUPPLY REPAIR & MAINT SUPPLIES - MULTIPLE DEPTS 670.77 12/9/2025 303899 S&STRUCKING LLC FLATBED TRUCKING - CREEKSIDE 2,300.00 12/9/2025 303900 SCHERER & SONS TRUCKING INC FLATBED TRUCKING - CREEKSIDE 900.00 12/9/2025 303901 SHRED-N-GO446138 SHREDDING - MULTIPLEDEPTS 70.00 12/9/2025 303902 SOLUS LED LIGHT FIXTURES FOR EAST ARENA RE -LIGHT 834.00 12/9/2025 303903 SOUTHERN GLAZER'S WINEAND SPIRITS COST OF GOODS SOLD -LIQUOR HUTCH 14,702.29 12/9/2025 303904 ST. CLOUD REFRIGERATION INC HVAC REPAIR - REC BLDG 1,541.00 12/9/2025 303905 STANDARD PRINTING-N-MAILING UB BILLS, POSTAGE -MULTIPLE DEPTS 2,149.31 12/9/2025 303906 STAPLES ADVANTAGE OFFICE SUPPLIES-MULTIPLEDEPTS 378.84 12/9/2025 303907 TRI COUNTY WATER RENTAL, WATER, SOFTENER SALT- MULTIPLE DEPTS 372.66 12/9/2025 303908 TRUE BRANDS COST OF GOODS SOLD - LIQUOR HUTCH 309.91 12/9/2025 303909 VIKING BEER COST OF GOODS SOLD - LIQUOR HUTCH 14,885.70 12/9/2025 303910 VIKING COCA COLA COST OF GOODS SOLD - LIQUOR HUTCH 586.70 12/9/2025 303911 VINOCOPIA INC COST OF GOODS SOLD - LIQUOR HUTCH 2,238.22 12/9/2025 303912 VIVID IMAGE METEORSUDES REMOVALAND STATIC IMAGE ADDED -CREEKSIDE 200.00 12/9/2025 303913 WASTE MANAGEMENT OF WI -MN REFUSE TAKEN TO LANDFILL 6,456.20 12/9/2025 303914 WELCOME NEIGHBOR ADVERTISING - LIQUOR HUTCH 60.00 12/9/2025 303915 WINE COMPANY, THE COST OF GOODS SOLD - LIQUOR HUTCH 1,408.10 12/9/2025 303916 WINE MERCHANTS INC COST OF GOODS SOLD - LIQUOR HUTCH 1,678.66 12/9/2025 303917 YOUNGDALE, REBEKAH REIMB: SAFETY FOOTWEAR - POLICE 71.26 Total - Check Register A: $ 789,391.10 CHECK REGISTER B FOR CITY OF HUTCHINSON CHECK DATES 11/26/25 - 12/9/25 Check Date Check# Name Description Amount 12/9/2025 303826 CROW RIVER GLASS INC BUSINESS CARDS 40.00 Total - Check Register B: $ 40.00 RA HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. RESOLUTION AUTHORIZING EXECUTION OF AN AMENDED AND RESTATED DEVELOPMENT Agenda Item: AGREEMENT AND APPROVAL OF A BUSINESS SUBSIDY FOR 10 MAIN STREET, LLC Department: EDA LICENSE SECTION Meeting Date: 12/9/2025 Application Complete N/A Contact: Miles R. Seppelt Agenda Item Type: Presenter: Miles R. Seppelt Reviewed by Staff ❑ Public Hearing Time Requested (Minutes): 10 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: For consideration by the City Council is a revised Development Agreement with the developer of the Jorgensen Hotel project. On October 28th the City Council authorized the establishment of TIF District 4-25 in the principle amount of $792,000, plus interest. Since that time the developer has provided additional documentation to justify a higher principle TIF amount of $1,174,522, plus interest. This utilizes all the tax increment generated by the TIF District over its entire 26-year life. An analysis by Ehlers & Associates, the city's TIF consultant, has verified that the project will need this amount of public assistance to be financially feasible. 10 Main Street, LLC is proposing to construct an approximately 40-unit hotel on the site of the current Jorgensen Hotel & Kock Jewelry buildings. The new building would be a boutique hotel and include up to 3,000 square feet of ground floor commercial space. The project may include a certain amount of convention space, but this is yet to be determined. Demolition of the existing buildings would take place this winter. Construction timing of the new building is contingent upon economic conditions - it could begin as soon and this coming spring, or it may be a year or more before construction begins. ATTACHED for your review please find copies of the resolution and the revised Development Agreement. 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 all necessary documents. Fiscal Impact: Funding Source: FTE Impact: Budget Change: No 0 Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: EXTRACT OF MINUTES OF MEETING OF THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA HELD: December 9, 2025 Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Hutchinson, McLeod County, Minnesota, was duly held at the City Hall on December 9, 2025, at 5:30 p.m. The following Council members were present: and the following were absent: Councilmember introduced the following resolution and moved its adoption: RESOLUTION NO. 15948 RESOLUTION AUTHORIZING EXECUTION OF AN AMENDED AND RESTATED DEVELOPMENT AGREEMENT AND APPROVAL OF A BUSINESS SUBSIDY A. WHEREAS, the City of Hutchinson, Minnesota (the "City") and 10 Main Street, LLC, a Minnesota limited liability company (the "Developer") entered into a Development Agreement (the "Original Agreement") dated October 1, 2025, in which the City agreed to provide tax increment financing to the Developer in connection with the construction by the Developer of an approximately 40-unit hotel facility to be located in the City; B. WHEREAS, the City and the Developer have agreed to amend certain terms within the Original Agreement pursuant to an Amended and Restated Development Agreement (the "Amended and Restated Development Agreement"); C. WHEREAS, the proposed assistance by the City to the Developer, as contemplated by the Amended and Restated Development Agreement, is considered a business subsidy (the 'Business Subsidy") pursuant to Minnesota Statutes, Sections 116J.993 to 116J.995 (the "Business Subsidy Act"); and D. WHEREAS, a public hearing, pursuant to the Business Subsidy Act, was held on this day. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Hutchinson as follows: 1. Amended and Restated Development Agreement. 196364694v1 (i) The City hereby approves the Amended and Restated Development Agreement in substantially the form submitted and the Mayor and City Administrator are hereby authorized and directed to execute the Amended and Restated Development Agreement on behalf of the City. (ii) The approval hereby given to the Amended and Restated 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 Authority officials authorized by this resolution to execute the Amended and Restated Development Agreement. The execution of the Amended and Restated Development Agreement by the appropriate officer or officers of the City shall be conclusive evidence of the approval of the Amended and Restated Development Agreement in accordance with the terms hereof. 2. Business Subsidy; Public Purpose. The City hereby determines that the public purpose of the Business Subsidy is to remove blight and preserve and increase the tax base in the City. In accordance with the provisions of the Business Subsidy Act, the City hereby approves the Business Subsidy and determines that the creation and retention of jobs is not a goal of the Business Subsidy and consequently hereby sets the wage and job goals at zero. 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 December, 2025. Attest: City Administrator 2 Mayor 196364694v1 STATE OF MINNESOTA COUNTY OF MCLEOD CITY OF HUTCHINSON I, the undersigned, being the duly qualified and acting Administrator of the City of Hutchinson, Minnesota, DO HEREBY CERTIFY that I have carefully compared the attached and foregoing extract of minutes with the original minutes of a meeting of the City Council of the City held on the date therein indicated, which are on file and of record in my office, and the same is a full, true and complete transcript therefrom insofar as the same relates to a Resolution Authorizing Execution of an Amended and Restated Development Agreement and Approval of a Business Subsidy. WITNESS my hand this 9th day of December, 2025. 9 City Administrator 196364694v1 AMENDED AND RESTATED DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF HUTCHINSON, MINNESOTA AND 10 MAIN STREET, LLC This document drafted by: TAFT STETTINIUS & HOLLISTER LLP (MTM) 2200 IDS Center 80 South 8 h Street Minneapolis, Minnesota 55402 176702461v4 TABLE OF CONTENTS Page ARTICLE I DEFINITIONS................................................................................................. 2 Section 1.1 Definitions............................................................................................2 ARTICLE II REPRESENTATIONS AND WARRANTIES ................................................ 5 Section 2.1 Representations and Warranties of the City ......................................... 5 Section 2.2 Representations and Warranties of the Developer ............................... 5 ARTICLE III UNDERTAKINGS BY DEVELOPER AND CITY ....................................... 7 Section 3.1 Development Property and Site Improvements ................................... 7 Section 3.2 Limitations on Undertaking of the City ............................................... 7 Section 3.3 Reimbursement: TIF Note................................................................... 7 Section 3.4 Prohibition Against Transfer of Project and Assignment of Agreement............................................................................................ 8 Section 3.5 Real Property Taxes............................................................................. 8 Section 3.6 Business Subsidy................................................................................. 9 ARTICLE IV EVENTS OF DEFAULT............................................................................... I I Section 4.1 Events of Default Defined................................................................. 11 Section 4.2 Remedies on Default.......................................................................... 1 I Section 4.3 No Remedy Exclusive........................................................................ 12 Section 4.4 No Implied Waiver............................................................................ 12 Section 4.5 Agreement to Pay Attorney's Fees and Expenses .............................. 12 Section 4.6 Indemnification of City...................................................................... 12 ARTICLE V DEVELOPER'S OPTION TO TERMINATE AGREEMENT ..................... 14 Section 5.1 The Developer's Option to Terminate ................................................ 14 Section 5.2 Action to Terminate........................................................................... 14 Section 5.3 Effect of Termination......................................................................... 14 ARTICLE VI ADDITIONAL PROVISIONS...................................................................... 13 Section 6.1 Restrictions on Use............................................................................ 15 Section 6.2 Conflicts of Interest............................................................................ 15 Section 6.3 Titles of Articles and Sections........................................................... 15 Section 6.4 Notices and Demands........................................................................ 15 Section6.5 Counterparts....................................................................................... 16 Section 6.6 Law Governing.................................................................................. 16 Section6.7 Expiration........................................................................................... 16 Section 6.8 Provisions Surviving Rescission or Expiration .................................. 16 Section 6.9 Assignment of TIF Note.................................................................... 16 EXHIBIT A DESCRIPTION OF DEVELOPMENT PROPERTY ........................................... A-1 EXHIBIT B FORM OF TIF NOTE........................................................................................... B-1 176702461v4 EXHIBIT C SITE IMPROVEMENTS...................................................................................... C-1 176702461v4 AMENDED AND RESTATED DEVELOPMENT AGREEMENT THIS AMENDED AND RESTATED DEVELOPMENT AGREEMENT, made as of the 1s1 day of December, 2025, by and between the City of Hutchinson, Minnesota (the "City"), a municipal corporation existing under the laws of the State of Minnesota and 10 Main Street, LLC, a Minnesota limited liability company (the "Developer"). WITNESSETH: WHEREAS, the City and the Developer entered into a Development Agreement, dated as of October 1, 2025 (the "Original Agreement"); and WHEREAS, the City and the Developer have agreed to amend and restate the Original Agreement in its entirety; and 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 has heretofore established, within the Development District, Tax Increment Financing District No. 4-25 (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 Tax Increment District and 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 redevelopment 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. WHEREAS, the requirements of the Business Subsidy Law, Minnesota Statutes, Section 116J.993 through 116J.995, apply to this Agreement; and WHEREAS, the City has adopted criteria for awarding business subsidies that comply with the Business Subsidy Law, after a public hearing for which notice was published; and WHEREAS, the Council has approved this Agreement as a subsidy agreement under the Business Subsidy Law. 176702461v4 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: 2 176702461v4 ARTICLE I DEFINITIONS Section 1.1 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 Amended and Restated Development Agreement, as the same may be from time to time modified, amended or supplemented; Benefit Date means the earlier of the date the Developer completes construction of the Project or the Developer occupies the Project; 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; Business Subsidy means the term as defined by Minnesota Statutes, Section 116J.993, Subdivision 3; Business Subsides means Minnesota Statutes, Section 116J.993 through 116J.995; Ci1y means the City of Hutchinson, Minnesota; Counly means McLeod County, Minnesota; Developer means 10 Main Street, LLC, a Minnesota limited liability company, its successors, and assigns; Development District means Municipal Development District No. 4, including the real property described in the Development Program; Development Program means the development program approved in connection with the Development District; 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, Loan Agreement means the Loan Agreement dated as of October 1, 2025 by and between the City and the Developer whereby the City shall loan the Developer the sum of $350,000 for certain costs of the Project; Note Payment Date means August 1, 2028, and each February 1 and August 1 of each year thereafter to and including February 1, 2054; 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; 3 176702461v4 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; Project means the construction and acquisition of an approximately 40-unit hotel facility to be located on the Development Property; Site Improvements means the site improvements undertaken or to be undertaken on the Development Property, more particularly described on Exhibit C attached hereto; State means the State of Minnesota; Tax Increments means 90% of the tax increments derived from the Development Property which have been received and retained by the City in accordance with the provisions of Minnesota Statutes, Section 469.177, which tax increments from the Development Property are calculated in the sole discretion of the City; Tax Increment Act means Minnesota Statutes, Sections 469.174 through 469.1794, as amended; Tax Increment District means Tax Increment Financing District No. 4-25 located within the Development District, a description of which is set forth in the Tax Increment Financing Plan, and qualified as a redevelopment 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 October 28, 2025, and any future amendments thereto; Termination Date means the earlier of (i) February 1, 2054, (ii) the date the Note is paid in full as provided in the 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 (10 Main Street 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 B; 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. 0 176702461v4 ARTICLE II REPRESENTATIONS AND WARRANTIES Section 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) The Tax Increment District is a "redevelopment district" within the meaning of Minnesota Statutes, Section 469.174, Subdivision 10 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 agrees, subject to the further provisions of this Agreement, to apply Tax Increments to reimburse the Developer for a portion of the costs of the acquisition of the Development Property and construction of Site Improvements incurred in connection with 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. Section 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 Loan Agreement, the Development Program, Tax Increment Financing Plan, and all applicable 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 have been or be economically feasible within the reasonably foreseeable future, without the assistance and benefit to the Developer provided for in this Agreement. (4) 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 5 176702461v4 applicable local, state, and federal laws and regulations which must be obtained or met before the Project may be lawfully constructed. (5) 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. (6) The Developer will cooperate fully with the City with respect to any litigation commenced with respect to the Project. (7) 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. (8) The construction of the Project will commence on or before May 1, 2029, and barring Unavoidable Delays, the Project will be substantially completed by November 1, 2030. (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 acquisition of the Development Property and construction of the Site Improvements as provided in Article III. 176702461v4 ARTICLE III UNDERTAKINGS BY DEVELOPER AND CITY Section 3.1 Development Property and Site Improvements. The parties agree that the acquisition of the Development Property and the Site Improvements to be constructed by the Developer are essential to the successful completion of the Project. The costs of the acquisition of the Development Property and construction of the Site Improvements shall be paid by the Developer. The City shall reimburse the Developer for the lesser of (a) $1,174,522, or (b) the actual costs of the acquisition of the Development Property and construction of the Site Improvements actually incurred and paid by the Developer (the "Reimbursement Amount") as further provided in Section 3.3. Section 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 Reimbursement Amount, 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. Section 3.3 Reimbursement: TIF Note. The City shall reimburse the payments made by the Developer under Section 3.1 for costs of the acquisition of the Development Property and the construction of the Site Improvements 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 shall have (a) demonstrated in writing to the reasonable satisfaction of the City that the Developer has incurred and paid the costs of the acquisition of the Development Property and the construction of the Site Improvements, as described in and limited by Section 3.1; and (b) shall have submitted paid invoices for the costs of the construction of the Site Improvements and a title company settlement statement or other evidence of payment of the costs of the Development Property 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 lesser of: (a) the rate of 5.00% or (b) the rate of the Developer's primary financing for the construction of the Project at the time of issuance of the TIF Note. 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) The payment dates of the TIF Note shall be the Note Payment Dates. On each Note Payment Date and subject to 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. 7 176702461v4 (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 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 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 B. 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. Section 3.4 Prohibition Against 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 be entitled to require as conditions to any such approval that: (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. (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) There shall be submitted to the City for review and prior written approval all instruments and other legal documents involved in effecting the transfer of any interest in this Agreement or the Project. Section 3.5 Real Property Taxes. The Developer shall pay all real property taxes 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 with the written consent of the City 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 property taxation of real property contained on the 176702461v4 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, including delinquent tax proceedings with respect to the Development Property; 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) The Developer shall notify the City within 10 days of filing any petition to seek reduction in market value or property taxes on any portion of the Development Property under any State law (referred to as a "Tax Appeal"). If as of any Note Payment Date, any Tax Appeal is then pending, the City will continue to make payments on the TIF Note but only to the extent that the Tax Increments relate to property taxes paid with respect to the market value of the Development Property not being challenged as part of the Tax Appeal and the City will withhold the Tax Increments related to property taxes paid with respect to the market value of the Development Property being challenged as part of the Tax Appeal, all as determined by the City in its reasonable discretion. The City will apply any withheld amount to the extent not reduced as a result of the Tax Appeal promptly after the Tax Appeal is fully resolved and the amount of Tax Increments, as applicable, attributable to the disputed tax payments is finalized. Section 3.6 Business Subsidy. (1) In order to satisfy the Business Subsidy Law, the Developer acknowledges and agrees that (i) the maximum amount of the "Business Subsidy" granted to the Developer under this Agreement is $1,174,522 which is the maximum amount of the Reimbursement Amount and (ii) the Business Subsidy is needed because the Project is not sufficiently feasible for the Developer to undertake without the Business Subsidy. (2) In accordance with the provisions of the Business Subsidy Law, after holding a public hearing, the City has determined that the creation and retention of jobs is not a goal of the Business Subsidy and therefore the wage and job goals for the Project are set at zero. (3) The Tax Increment District is a redevelopment development district and the public purpose of the Business Subsidy is to remove blight and preserve and increase the tax base in the City. The Developer agrees that the goal of the development of the Development Property and the construction of the project is to increase the tax base in the City (the "Goal"). The Goal shall be met if the Developer substantially completes the construction of the Project in accordance with the requirements of this Agreement. W 176702461v4 (4) If the Goal is not met, the Developer agrees to repay all of the Business Subsidy to the City, plus interest ("Interest") set at the implicit price deflator defined in Minnesota Statutes, Section 275.70, Subdivision 2, accruing from and after the Benefit Date, compounded semiannually. For purposes of this Section 3.6(4), the Business Subsidy equals the amount of principal payments received by the Developer under the TIF Note to date. (5) The Developer agrees to (i) report at least annually on the Developer's progress on achieving the Goal to the City until the later of the date the Goal is met or three (3) years from the Benefit Date, or, if the Goal is not met, until the date the Business Subsidy is repaid to the extent required by this Section 3.6, (ii) include in the report the information required in Section 116J.994, Subdivision 7 of the Business Subsidies Law on forms developed by the Minnesota Department of Employment and Economic Development, and (iii) send completed reports to the City. The Developer agrees to file these reports no later than March I of each year, commencing March 1, 2029, and within 60 days after the deadline for meeting the Goal. The City agrees that if reports are not received by the City, the City will mail the Developer a warning within one week of the required filing date. If within 14 days of the post marked date of the warning the reports are not made, the Developer agrees to pay to the City a penalty of $100 for each subsequent day until the report is filed up to a maximum of $1,000. (6) In addition to the assistance the City is granting to the Developer pursuant to this Agreement, the Developer is receiving financial assistance from other "grantors" as defined in the Business Subsidies Act in connection with the Project, including the Minnesota Department of Employment Economic Development (Demolition Loan Program). (7) There is no parent corporation of the Developer. (8) The Developer agrees to operate in the City for at least five (5) years after the Benefit Date. (9) The Developer certifies that it does not appear on the Minnesota Department of Employment and Economic Development's list of recipients that have failed to meet the terms of a business subsidy agreement. 10 176702461v4 ARTICLE IV EVENTS OF DEFAULT Section 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 when due and payable. (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, trustee or liquidator 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. Section 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 11 176702461v4 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: (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. Section 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. Section 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. Section 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, on demand therefor, pay to the City the reasonable fees of such attorneys and such other expenses so incurred by the City. Section 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 other persons acting on its behalf or under its 12 176702461v4 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 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 cease to qualify as a "redevelopment district" under Section 469.174, Subdivision 10, of the Act, or (ii) to violate limitations as to the use of Tax Increments as set forth in Section 469.176, Subdivision 4j. (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. 13 176702461v4 ARTICLE V DEVELOPER'S OPTION TO TERMINATE AGREEMENT Section 5.1 The Developer's Option to Terminate. This Agreement may be terminated by 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. Section 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. Section 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. 14 176702461v4 ARTICLE VI ADDITIONAL PROVISIONS Section 6.1 Restrictions on Use. The Developer agrees for itself, its successors and assigns and every successor in interest to the Project that during the term of this Agreement the Developer and its successors and assigns shall operate, or cause to be operated, the Project as contemplated in this Agreement, and shall devote the Project to, and in accordance with, the uses specified in this Agreement. Section 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. Section 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. Section 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: 10 Main Street, LLC 1330 East Superior Street, Suite 202 Duluth, MN 55805 USA (2) in the case of the City is addressed to or delivered personally to the City at: City of Hutchinson, Minnesota I I I Hassan ST SE, Hutchinson, MN 55350 Attn: City Administrator 15 176702461v4 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. Section 6.5 Counterparts. This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same instrument. Section 6.6 Law Governing. This Agreement will be governed and construed in accordance with the laws of the State. Section 6.7 Expiration. This Agreement shall expire on the Termination Date, unless earlier terminated or rescinded in accordance with its terms. Section 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. Section 6.9 Assignment of TIF Note. The TIF Note may only be assigned pursuant to the terms of the TIF Note. 16 176702461v4 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 City Administrator This is a signature page to the Amended and Restated Development Agreement by and between the City of Hutchinson, and 10 Main Street, LLC S-1 176702461v4 10 MAIN STREET, LLC Its Its This is a signature page to the Amended and Restated Development Agreement by and between the City of Hutchinson, and 10 Main Street, LLC. S-2 176702461v4 EXHIBIT A DESCRIPTION OF DEVELOPMENT PROPERTY Property located in the City of Hutchinson, McLeod County, Minnesota with the following Parcel Identification Numbers: 23-050-0530 23-050-0535 A-1 176702461v4 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 (10 Main Street Project) The City of Hutchinson, Minnesota (the "City"), hereby acknowledges itself to be indebted and, for value received, hereby promises to pay the amounts hereinafter described (the "Payment Amounts") to 10 Main Street, LLC, a Minnesota limited liability company, or its registered assigns (the "Developer" or "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 $1,174,522 as provided in that certain Amended and Restated Development Agreement, dated as of December 1, 2025, as the same may be amended from time to time (the "TIF Agreement"), by and between the City and the Developer. The unpaid principal amount hereof shall bear interest from the date of this Note at the lesser of (a) the simple non -compounded rate of five percent (5.00%) per annum or (b) the rate of the Developer's primary financing for the construction of the Project at the date of this Note. 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, 2028, and on each February 1 and August I thereafter to and including February 1, 2054, or, if the first should not be a Business Day (as defined in the TIF 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 sum of the Tax Increments (hereinafter defined) received by the City during the six (6) 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 may be prepaid by the City, in whole or in part, on any date. The Payment Amounts due hereon shall be payable solely from 90% of the tax increments (the "Tax Increments") from the Development Property (as defined in the Development Agreement) within the City's Tax Increment Financing District No. 4-25 (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 176702461v4 Increment Act"). This Note shall terminate and be of no further force and effect following the termination of the Tax Increment District, on any date upon which the City shall have terminated the Development Agreement under Section 4.2(2) thereof or the Developer shall have terminated the Development Agreement under Article V thereof, or on the date that all principal and interest 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 Development Agreement shall have occurred and be continuing at the time payment is otherwise due hereunder, but such unpaid amounts shall become payable, without interest accruing thereon in the meantime, if said Event of Default shall thereafter have been cured; and, further, if pursuant to the occurrence of an Event of Default under the Development Agreement the City elects to cancel and rescind the 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 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 of Hutchinson, Minnesota, 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, conditioned or delayed. 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. 176702461v4 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 City Administrator and has caused this Note to be issued on and dated ,20 . City Administrator Mayor DO NOT EXECUTE UNTIL PAID INVOICES, A SETTLEMENT STATEMENT OR OTHER EVIDENCE OF PAYMENT FOR LAND ACQUISITION AND FOR SITE IMPROVEMENTS ARE GIVEN TO THE CITY - REFER TO SECTION 3.3. ME 176702461v4 CERTIFICATION OF REGISTRATION It is hereby certified that the foregoing Note, as originally issued on , 20 , was on said date registered in the name of 10 MAIN STREET, 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 REGISTERED OWNER 10 Main Street, LLC 1330 East Superior Street, Suite 202 Duluth, MN 55805 USA DATE OF SIGNATURE OF REGISTRATION CITY ADMINISTRATOR 176702461v4 EXHIBIT C SITE IMPROVEMENTS Landscaping, including irrigation Foundations and Footings Grading/earthwork Survey Environmental Testing Soil Borings Site Preparation Onsite Utilities and Utility Connection Fees SAC/WAC Storm Water/Ponding Outdoor Lighting Onsite Road, Curb, Gutter, Driveway, Sidewalk and Streetscape Improvements Parking C-1 176702461v4 RA HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Public Hearing for Edmonton Avenue SE Improvement Project (L1/P26-01) Agenda Item: Department: Public Works Engineering LICENSE SECTION Meeting Date: 12/9/2025 Application Complete N/A Contact: Brandon Braithwaite Agenda Item Type: Presenter: Brandon Braithwaite 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 2026 Edmonton Avenue SE Improvement Project. Attached for your reference are the project meeting notice, project area map and project engineering report document with the current costs/funding estimations. 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 and the ordering of the advertisement for bids as referenced within the attached Resolutions. The scheduled bid opening date is Wednesday, February 11, 2026 at 1.00pm. BOARD ACTION REQUESTED: Approval of Resolutions Fiscal Impact: $ 0.00 Funding Source: FTE Impact: Budget Change: No 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. 15941 RESOLUTION ORDERING IMPROVEMENT AND PREPARATION OF PLANS AND SPECIFICATIONS LETTING NO. 1/PROJECT NO. 26-01 WHEREAS, a resolution of the City Council adopted the 12th day of November 2025, fixed a date for a Council Hearing on the following improvements: Edmonton Avenue SE (400' East of Montreal St SE to Jefferson St SE): 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 12th day of November 2025. 3. Such improvement has no relationship to the comprehensive municipal plan. 4. Brandon Braithwaite 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 December 2025. Mayor: Gary Forcier City Administrator: Matthew Jaunich RESOLUTION NO. 15942 RESOLUTION APPROVING PLANS AND SPECIFICATIONS AND ORDERING ADVERTISEMENT FOR BIDS LETTING NO. 1/PROJECT NO. 26-01 WHEREAS, the City Engineer has prepared plans and specifications forthe following described improvement: Edmonton Avenue SE (400' East of Montreal St SE to Jefferson St SE): 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 plans and specifications, a copy of which is attached hereto and made a part hereof, are hereby approved. 2. The City Engineer shall prepare and cause to be inserted in the official newspaper, the City of Hutchinson Web -Site and in Finance and Commerce, an advertisement for bids upon the making of such improvements under such approved plans and specifications. The advertisement shall be published for three weeks, shall specify the work to be done, shall state that bids will be received by the City Engineer until 1:00 pm on Wednesday, February 11th, 2026, at which time they will be publicly opened in the Council Chambers of the Hutchinson City Center by the City Administrator and City Engineer, will then be tabulated, and the responsibility of the bidders will be considered by the Council at 5:30 pm on Tuesday, March 24th 2026 in the Council Chambers of the Hutchinson City Center, Hutchinson, Minnesota. Any bidder whose responsibility is questioned during consideration of the bid will be given an opportunity to address the Council on the issue of responsibility. No bids will be considered unless sealed and filed with the City Engineer and accompanied by cash deposit, cashier's check, bid bond or certified check payable to the City of Hutchinson for 5 percent of the amount of such bid. Adopted by the Hutchinson City Council this 9th day of December 2025. Mayor: Gary Forcier City Administrator: Matt Jaunich PUBLICATION NO. 8609 ADVERTISEMENT FOR BIDS LETTING NO. 1/PROJECT NO. 26-01 TO WHOM IT MAY CONCERN: Hutchinson, Minnesota Dated:12/09/2025 The City Council of the City of Hutchinson, Minnesota, will receive bidsat the Hutchinson City Center, Engineering Office,111 Hassan St SE, Hutchinson MN, until 1:00 pm on Wednesday, February 11, 2026, for the making of the following described local improvement: L1/P26-01: Edmonton Avenue SE (400' East of Montreal St SE to Jefferson St SE): Full depth reclamation of street, including partial curb and gutter replacement, restoration and appurtenances, and all in accordance with the Plans and Specifications on file in the Engineering Office. Immediately following expiration of the time for receiving bids, the City Administrator and/or City Engineer will publicly open bids, in the Council Chambers at the Hutchinson City Center. The Council, will consider said bids and responsibility of the bidders during the Council Meeting at 5:30 pm on Tuesday, March 24th, 2026 in the Council Chambers of the Hutchinson City Center. The approximate major quantities of work involved are: ITEM UNIT QUANTITY All bids shall be made on the Proposal Forms of the City and shall be accompanied by a cashier's check, bid bond or certified check, payable to the order of the City of Hutchinson, Minnesota, for not less than five percent (5%) of the amount bid. Bids shall be directed to the City Engineer, securely sealed and endorsed upon the outside wrapper. Plans and Specifications are expected to be available 01/27/2026 Complete digital project bidding documents are available at www.questcdn.com. You may download the digital plan documents for $40.00 by inputting Quest project # on the website's Project Search page. Please contact QuestCDN.com at 952-233-1632-or info@questcdn.com for assistance in free membership registration, downloading, and working with this digital project information. In order to bid on this project, you must be a "registered" plan holder. To be a "registered" plan holder, you must purchase the digital bidding documents from QuestCDN or purchase the paper set of the bidding documents from the City of Hutchinson. Any bids submitted by contractors not on the Plan Holder List will not be considered at the time for opening of bids and will be returned to the contractor. The City Council reserves the right to reject all bids and to waive any informalities and irregularities. Matthew Jaunich, City Administrator PUBLISH IN HUTCHINSON LEADER ON FRIDAY, JANUARY 23RD, 2026 AND FRIDAY, JANUARY 30TH, 2026. PUBLISH IN FINANCE & COMMERCE ON FRIDAY, JANUARY 23RD, 2026 AND FRIDAY, JANUARY 30TH, 2026. HUTCNINSaN A ClrT ON PURPOSE City Improvement Project Notice Letting No. 1/Project No. 26-01 Edmonton Avenue SE (400' East of Montreal St SE to Jefferson St SE) Informational meeting Wednesday, December 3, 2025 5:00 p.m. City Center, 111 Hassan St SE, Hutchinson, MN 55350 PROPOSED STREET IMPROVEMENTS To complete construction of Edmonton Ave SE, the City is considering a full depth reclamation of Edmonton Ave SE between Montreal St SE and Jefferson St SE. The street adjacent to your property has been identified as part of this project. A process of approving the project will take place over the upcoming months. Actual approval for this project will depend upon funding limitations and action taken by the City Council. The existing street surface has been identified for a reclaim type project for 2026. Pavement deterioration includes cracking, settlement and potholes. Due to the condition of street, using preventive maintenance measures are not cost-effective. This improvement work will include reclamation of existing roadway pavement, grading and new bituminous pavement, limited spot repair of concrete curb & gutter, reclamation of existing trail and new bituminous pavement, pavement markings, and turf restoration. PROJECT COSTS & FUNDING The project cost estimate is $1,059,534.00, which includes amounts for construction, engineering, administration, and geotechnical testing. Funding for this project would be a combination of Municipal State Aid funds, City utility funds, funds from issuing an improvement bond and funds from special assessments to abutting properties. 1 ASSESSMENTS The City proposes to assess abutting properties a small portion of the total project cost. In accordance with the City's Assessment Policy and Fee Schedule, estimated assessment amounts have been calculated for each abutting property. At this early stage in the project's development, however, estimated assessments are subject to change. Proposed Assessment Rates (per City Assessment Policy & Fee Schedule) Total street construct/reconstruct (curb, storm, water & sewer) $103.95/adjusted frontage foot Partial street reconstruction (curb, storm, water or sewer) $91.85/adjusted frontage foot Partial street reconstruction (curb & storm) $80.30/adjusted frontage foot Street rehabilitation (up to 15% curb, no utilities) $62.15/adjusted frontage foot Mill/overlay (minor curb repair, street surface only) $35.20/adjusted frontage foot Water service lateral $3,543.75/ea. Sewer service lateral $3,543.75/ea. ■ Estimated Total Assessment for Typical City Lot (66' width) o Partial street reconstruction (curb, storm, water or sewer): 66 LF x $62.15/aff = $4,101.90 ■ Notes: 0 1. Methods used and amounts of estimated assessments are subject to change. 0 2. Assessments are allocated to properties over a 10-year term, with the interest rate estimated at between 4% and 6%. There are options for paying assessments up front. Certain property owners may be eligible to defer their assessment. This will depend upon their age, a defined disability situation and/or military service status, as outlined within Minnesota Statutes and City Policy. Additional information regarding assessments is available from the City's Finance Department, City Center, 111 Hassan St SE. MEETINGS, HEARINGS & PROCESS This City Improvement Project Notice and the informational meeting on December 3rd are usually the first step in the process. At the informational meeting, City staff will make a short presentation of the project and be available the rest of the time to answer questions and address concerns. If you cannot make it to the informational meeting, please contact us with your questions and concerns. If necessary, City staff can meet with you individually, either at City Center or at your property. There are two formal hearings that will take place at a later time, including: Improvement Hearing The first official hearing, the Improvement Hearing, is currently scheduled for the City Council meeting on December 9, 2025, at 5:30 p.m. The hearing includes a formal presentation of the proposed project to the City Council. This meeting will be televised. Time for public input is included, and your comments are welcome. If you contact us beforehand with questions or concerns, those will be reported to the City Council at the hearing. 2 Any written comments you provide, either by letter or email, prior to December 9, will also be provided to the City Council at the scheduled hearing. This hearing does not mean that the project will be constructed. This hearing is the point at which the City Council makes a formal decision whether to have City staff move to the next step of completing the plans & specifications and soliciting bids for construction of the project. Assessment Hearing A second official hearing, the Assessment Hearing, would be called for after bids are received (most likely at a regular City Council meeting in late February or early March, 2026). City staff prepares actual assessment amounts for each property and mails them out in advance of the meeting. The assessment hearing provides property owners an opportunity to comment on the merits of both the project and the proposed assessments. The City Council will consider any questions, thoughts and concerns regarding the project or associated assessments. The City Council will then decide whether to award a project contract. Property owners may formally contest an assessment by providing a written and signed objection letter. The objection letter must be provided to the City Administrator prior to or at the Assessment Hearing. This action allows the property owner to appeal an assessment to District Court pursuant to Minnesota Statutes Section 429.081 by serving notice of the appeal upon the Mayor or City Administrator within 30 days after the adoption of the assessment (typically the Assessment Hearing date) and filing such notice with the District Court within ten days after service upon the Mayor or City Administrator. SCHEDULE & CONSTRUCTION ITEMS Construction is anticipated to start in the spring of 2026. During construction, there would be times when access to your property is restricted. At other times, access may be somewhat limited. The project, except perhaps for the final roadway paving, should be completed at some point in the fall of 2026 if weather conditions permit. The plan is for construction to be substantially complete by the time school starts next fall. CONTACT INFORMATION Please feel free to contact Mike Stifter, Public Works Director, at (320) 234-4212 or by email at mstifter@hutchinsommn.gov if you have any questions or concerns you would like addressed. Please let us know if you would like to provide written feedback. We look forward to administering a successful project process with you. Thank you for your time and consideration! DENVER AVENUE LLJ I < CY BEGIN S.A.P. 133-131-003 STA 10+00 MCLEOD 115 AIRPORT ROAD FOE HUTCHINSON PUBLIC WORKS AND ENGINEERING City of Hutchinson Public Works Department Engineering 111 Hassan St SE Hutchinson, MN 55350 Phone (320) 234-4212 FEASIBILITY STUDY & ENGINEERING REPORT DATE: November 12, 2025 TO: Honorable Mayor & City Council members FROM: Brandon Braithwaite, City Engineer PROJECT: Edmonton Avenue SE (400' East of Montreal St SE to Jefferson St SE) Having studied the following proposed improvement, Public Works staff finds that the proposed project is feasible and recommend that it be constructed: L1/P26-01 Edmonton Avenue SE (400' East of Montreal St SE to Jefferson St SE) Full depth reclamation of street, including partial curb and gutter replacement, restoration and appurtenances. ESTIMATED COSTS TOTAL Construction Cost $ 875,648 Engineering $ 131,347 Administration $ 52,539 TOTAL ESTIMATED COSTS $ 1,059,534 ESTIMATED FUNDING TOTAL Assessments $ 25,108 City - GO Improvement Bond $ - City - Water Funds $ - City - Wastewater Funds $ - City - Stormwater Funds $ - Municipal State Aid $ 1,034,426 TOTAL ESTIMATED FUNDING $ 1,059,534 RA HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Public Hearing for 2026 Street Improvements Projects (1-2/P26-02) Agenda Item: Department: Public Works Engineering LICENSE SECTION Meeting Date: 12/9/2025 Application Complete N/A Contact: Brandon Braithwaite Agenda Item Type: Presenter: Brandon Braithwaite 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 2026 Street Improvement Projects. Attached for your reference are the project meeting notice, project area maps and project engineering report document with the current costs/funding estimations. 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 and the ordering of the advertisement for bids as referenced within the attached Resolutions. The scheduled bid opening date is Wednesday, February 18, 2026 at 1.00pm. BOARD ACTION REQUESTED: Approval of Resolutions Fiscal Impact: $ 0.00 Funding Source: FTE Impact: Budget Change: No 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. 15943 RESOLUTION ORDERING IMPROVEMENT AND PREPARATION OF PLANS AND SPECIFICATIONS LETTING NO. 2/PROJECT NO. 26-02 WHEREAS, a resolution of the City Council adopted the 12th day of November 2025, fixed a date for a Council Hearing on the following improvements: 2026 Street Improvement Projects: Boulder Circle SW (Boulder St SW to end of Cul-de-sac) Full depth reclamation of street, including partial curb and gutter replacement, water main repairs, restoration and appurtenances. Boulder Street SW (Roberts Rd SW to School Rd SW) Full depth reclamation of street, including partial curb and gutter replacement, storm sewer repairs, restoration and appurtenances. Larson Street SW (Roberts Rd SW to Lewis Ave SW) Full depth reclamation of street, including partial curb and gutter replacement, water main repairs, sanitary sewer repairs, restoration and appurtenances. Sherwood Street SE (Century Ave Se to 20' south of most Southerly Orchard Ave SE) Full depth reclamation of street, including partial curb and gutter replacement, water main repairs, restoration and appurtenances. Elks Drive SE (Sherwood St NE to Orchard Ave SE) Full depth reclamation of street, including partial curb and gutter replacement, storm sewer replacement, water main repairs, restoration and appurtenances. Orchard Avenue SE (Bradford St SE to Elks Dr SE) Full depth reclamation of street, including partial curb and gutter replacement, storm sewer replacement, water main repairs, restoration and appurtenances. Bradford Street SE (Orchard Ave SE to 270' North of Randall Rd SE) Full depth reclamation of street/ sub -cut, including partial curb and gutter replacement, water main repairs, restoration and appurtenances. Randall Road SE (Bradford St SE to Century Ave SE) Full depth reclamation of street/sub-cut, including partial curb and gutter replacement, water main 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 12th day of November 2025. 3. Such improvement has no relationship to the comprehensive municipal plan. 4. Brandon Braithwaite 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 December 2025. Mayor: Gary Forcier City Administrator: Matthew Jaunich RESOLUTION NO. 15944 RESOLUTION APPROVING PLANS AND SPECIFICATIONS AND ORDERING ADVERTISEMENT FOR BIDS LETTING NO. 2/PROJECT NO. 26-02 WHEREAS, the City Engineer has prepared plans and specifications for the following described improvement: 2026 Street Improvement Projects: Boulder Circle SW (Boulder St SW to end of Cul-de-sac) Full depth reclamation of street, including partial curb and gutter replacement, water main repairs, restoration and appurtenances. Boulder Street SW (Roberts Rd SW to School Rd SW) Full depth reclamation of street, including partial curb and gutter replacement, storm sewer repairs, restoration and appurtenances. Larson Street SW (Roberts Rd SW to Lewis Ave SW) Full depth reclamation of street, including partial curb and gutter replacement, water main repairs, sanitary sewer repairs, restoration and appurtenances. Sherwood Street SE (Century Ave Se to 20' south of most Southerly Orchard Ave SE) Full depth reclamation of street, including partial curb and gutter replacement, water main repairs, restoration and appurtenances. Elks Drive SE (Sherwood St NE to Orchard Ave SE) Full depth reclamation of street, including partial curb and gutter replacement, storm sewer replacement, water main repairs, restoration and appurtenances. Orchard Avenue SE (Bradford St SE to Elks Dr SE) Full depth reclamation of street, including partial curb and gutter replacement, storm sewer replacement, water main repairs, restoration and appurtenances. Bradford Street SE (Orchard Ave SE to 270' North of Randall Rd SE) Full depth reclamation of street/ sub -cut, including partial curb and gutter replacement, water main repairs, restoration and appurtenances. Randall Road SE (Bradford St SE to Century Ave SE) Full depth reclamation of street/sub-cut, including partial curb and gutter replacement, water main repairs, restoration and appurtenances. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: 1. Such plans and specifications, a copy of which is attached hereto and made a part hereof, are hereby approved. 2. The City Engineer shall prepare and cause to be inserted in the official newspaper, the City of Hutchinson Web -Site and in Finance and Commerce, an advertisement for bids upon the making of such improvements under such approved plans and specifications. The advertisement shall be published for three weeks, shall specify the work to be done, shall state that bids will be received by the City Engineer until 1:00 pm on Wednesday, February 11th, 2026, at which time theywill be publicly opened in the Council Chambers of the Hutchinson City Center by the City Administrator and Engineer, will then be tabulated, and the responsibility of the bidders will be considered by the Council at 5:30 pm on Tuesday, March 24th 2026 in the Council Chambers of the Hutchinson City Center, Hutchinson, Minnesota. Any bidder whose responsibility is questioned during consideration of the bid will be given an opportunity to address the Council on the issue of responsibility. No bids will be considered unless sealed and filed with the Director of Engineering/Public Works and accompanied by cash deposit, cashier's check, bid bond or certified check payable to the City of Hutchinson for 5 percent of the amount of such bid. Adopted by the Hutchinson City Council this 9th day of December 2025. Mayor: Gary Forcier City Administrator: Matt Jaunich PUBLICATION NO. 8610 ADVERTISEMENT FOR BIDS LETTING NO. 2/PROJECT NO. 26-02 TO WHOM IT MAY CONCERN: Hutchinson, Minnesota Dated:12/09/2025 The City Council of the City of Hutchinson, Minnesota, will receive bidsat the Hutchinson CityCenter, Engineering Office,111 Hassan St SE, Hutchinson MN, until 1:00 pm on Wednesday, February 18, 2026, for the making of the following described local improvement: L2/P26-02: 2026 Street Improvement Projects: Boulder Circle SW (Boulder St SW to end of Cul-de-sac) Full depth reclamation of street, including partial curb and gutter replacement, water main repairs, restoration and appurtenances. Boulder Street SW (Roberts Rd SW to School Rd SW) Full depth reclamation of street, including partial curb and gutter replacement, storm sewer repairs, restoration and appurtenances. Larson Street SW (Roberts Rd SW to Lewis Ave SW) Full depth reclamation of street, including partial curb and gutter replacement, water main repairs, sanitary sewer repairs, restoration and appurtenances. Sherwood Street SE (Century Ave Se to 20' south of most Southerly Orchard Ave SE) Full depth reclamation of street, including partial curb and gutter replacement, water main repairs, restoration and appurtenances. Elks Drive SE (Sherwood St NE to Orchard Ave SE) Full depth reclamation of street, including partial curb and gutter replacement, storm sewer replacement, water main repairs, restoration and appurtenances. Orchard Avenue SE (Bradford St SE to Elks Dr SE) Full depth reclamation of street, including partial curb and gutter replacement, storm sewer replacement, water main repairs, restoration and appurtenances. Bradford Street SE (Orchard Ave SE to 270' North of Randall Rd SE) Full depth reclamation of street/ sub -cut, including partial curb and gutter replacement, water main repairs, restoration and appurtenances. Randall Road SE (Bradford St SE to Century Ave SE) Full depth reclamation of street/sub-cut, including partial curb and gutter replacement, water main repairs, restoration and appurtenances, and all in accordance with the Plans and Specifications on file in the Engineering Office. Immediately following expiration of the time for receiving bids, the City Administrator and/or Director of Public Works/City Engineer will publicly open bids, in the Council Chambers at the Hutchinson City Center. The Council, will consider said bids and responsibility of the bidders during the Council Meeting at 5:30 pm on Tuesday, March 24th, 2026 in the Council Chambers of the Hutchinson City Center. The approximate major quantities of work involved are: UNIT QUANTITY All bids shall be made on the Proposal Forms of the City and shall be accompanied by a cashier's check, bid bond or certified check, payable to the order of the City of Hutchinson, Minnesota, for not less than five percent (5%) of the amount bid. Bids shall be directed to the City Engineer, securely sealed and endorsed upon the outside wrapper. Plans and Specifications are expected to be available 02/03/2026 Complete digital project bidding documents are available at www.questcdn.com. You may download the digital plan documents for $40.00 by inputting Quest project # on the website's Project Search page. Please contact QuestCDN.com at 952-233-1632-or info@questcdn.com for assistance in free membership registration, downloading, and working with this digital project information. In order to bid on this project, you must be a "registered" plan holder. To be a "registered" plan holder, you must purchase the digital bidding documents from QuestCDN or purchase the paper set of the bidding documents from the City of Hutchinson. Any bids submitted by contractors not on the Plan Holder List will not be considered at the time for opening of bids and will be returned to the contractor. The City Council reserves the right to reject all bids and to waive any informalities and irregularities. Matthew Jaunich, City Administrator PUBLISH IN HUTCHINSON LEADER ON FRIDAY, JANUARY 30TH, 2026 AND FRIDAY, FEBRUARY 6TH, 2026. PUBLISH IN FINANCE & COMMERCE ON FRIDAY, JANUARY 30TH, 2026 AND FRIDAY, FEBRUARY 6TH, 2026. HUTCNINSaN A ClrT ON PURPOSE City Improvement Project Notice Letting No. 2/Project No. 26-02 2026 Street Improvement Projects (Boulder Cir SW, Boulder St SW, Larson St SW, Sherwood St SE, Elks Dr SE, Orchard Ave SE, Bradford St SE, & Randall Rd SE) Informational meeting Wednesday, December 3, 2025 5:00 p.m. City Center, 111 Hassan St SE, Hutchinson, MN 55350 PROPOSED STREET IMPROVEMENTS To complete a full depth reclamation project on Boulder Circle SW (Boulder St SW to end of Cul- de-sac), Boulder Street SW (Roberts Rd SW to School Rd SW), Larson Street SW (Roberts Rd SW to Lewis Ave SW), Sherwood Street SE (Century AVE Se to 20' south of most Southerly Orchard Ave SE), Elks Drive SE (Sherwood St NE to Orchard Ave SE), Orchard Avenue SE (Bradford St SE to Elks Dr SE), Bradford Street SE (Orchard Ave SE to 270' North of Randall Rd SE) and Randall Road SE (Bradford St SE to Century Ave SE). The street adjacent to your property has been identified as part of this project. A process of approving the project will take place over the upcoming months. Actual approval for this project will depend upon funding limitations and action taken by the City Council. The existing street surface has been classified as marginal on average, with two sections identified as poor. Pavement deterioration includes cracking, settlement and potholes. Due to the condition of street, using preventive maintenance measures is not cost-effective. The intent of this improvement is to replace portions of the water main, which has a history of leaking. Minor Stormwater work to fix damaged pipes and catch basins. Roadway work will include reclamation of existing pavements, grading and new bituminous pavement, spot repair of curb & gutter, installation of drain tile, signs, tree removal and restoration. PROJECT COSTS & FUNDING 1 The project cost estimate is $2,944,455.00, which includes amounts for construction, engineering, administration, geotechnical testing and street lighting materials. Funding for this project would be a combination of City utility funds, funds from issuing an improvement bond and funds from special assessments to abutting properties. ASSESSMENTS The City proposes to assess abutting properties a small portion of the total project cost. In accordance with the City's Assessment Policy and Fee Schedule, estimated assessment amounts have been calculated for each abutting property. At this early stage in the project's development, however, estimated assessments are subject to change. Proposed Assessment Rates (per City Assessment Policy & Fee Schedule) Total street construct/reconstruct (curb, storm, water & sewer) $103.95/adjusted frontage foot Partial street reconstruction (curb, storm, water or sewer) $91.85/adjusted frontage foot Partial street reconstruction (curb & storm) $80.30/adjusted frontage foot Street rehabilitation (up to 15% curb, no utilities) $62.15/adjusted frontage foot Mill/overlay (minor curb repair, street surface only) $35.20/adjusted frontage foot Water service lateral $3,543.75/ea. Sewer service lateral $3,543.75/ea. ■ Estimated Total Assessment for Typical City Lot (66' width) o Partial street reconstruction (curb, storm, water or sewer): 66 LF x $62.15/aff = $4,101.90 ■ Notes: 0 1. Methods used and amounts of estimated assessments are subject to change. 0 2. Assessments are allocated to properties over a 10-year term, with the interest rate estimated at between 4% and 6%. There are options for paying assessments up front. Certain property owners may be eligible to defer their assessment. This will depend upon their age, a defined disability situation and/or military service status, as outlined within Minnesota Statutes and City Policy. Additional information regarding assessments is available from the City's Finance Department, City Center, 111 Hassan St SE. MEETINGS, HEARINGS & PROCESS This City Improvement Project Notice and the informational meeting on December 3rd are usually the first step in the process. At the informational meeting, City staff will make a short presentation of the project and be available the rest of the time to answer questions and address concerns. If you cannot make it to the informational meeting, please contact us with your questions and concerns. If necessary, City staff can meet with you individually, either at City Center or at your property. There are two formal hearings that will take place at a later time, including: Improvement Hearing 2 The first official hearing, the Improvement Hearing, is currently scheduled for the City Council meeting on December 9, 2025, at 5:30 p.m. The hearing includes a formal presentation of the proposed project to the City Council. This meeting will be televised. Time for public input is included, and your comments are welcome. If you contact us beforehand with questions or concerns, those will be reported to the City Council at the hearing. Any written comments you provide, either by letter or email, prior to December 9, will also be provided to the City Council at the scheduled hearing. This hearing does not mean that the project will be constructed. This hearing is the point at which the City Council makes a formal decision whether to have City staff move to the next step of completing the plans & specifications and soliciting bids for construction of the project. Assessment Hearing A second official hearing, the Assessment Hearing, would be called for after bids are received (most likely at a regular City Council meeting in late February or March, 2026). City staff prepares actual assessment amounts for each property and mails them out in advance of the meeting. The assessment hearing provides property owners an opportunity to comment on the merits of both the project and the proposed assessments. The City Council will consider any questions, thoughts and concerns regarding the project or associated assessments. The City Council will then decide whether to award a project contract. Property owners may formally contest an assessment by providing a written and signed objection letter. The objection letter must be provided to the City Administrator prior to or at the Assessment Hearing. This action allows the property owner to appeal an assessment to District Court pursuant to Minnesota Statutes Section 429.081 by serving notice of the appeal upon the Mayor or City Administrator within 30 days after the adoption of the assessment (typically the Assessment Hearing date) and filing such notice with the District Court within ten days after service upon the Mayor or City Administrator. SCHEDULE & CONSTRUCTION ITEMS Construction is anticipated to start in the spring of 2026. During construction, there would be times when access to your property is restricted. At other times, access may be somewhat limited. The project, except perhaps for the final roadway paving, should be completed at some point in the fall of 2026 if weather conditions permit. The plan is for construction to be substantially complete by the time school starts next fall. CONTACT INFORMATION Please feel free to contact Mike Stifter, Public Works Director, at (320) 234-4212 or by email at mstifter@hutchinsommn.gov if you have any questions or concerns you would like addressed. Please let us know if you would like to provide written feedback. We look forward to administering a successful project process with you. Thank you for your time and consideration! ROBERTS I I II II' w 0 p RANDALL F7 a m CENTURY AVE SE I:n II T H N n (' 0 L� O Q m ORCHARD AVE SE C s J L - -- - _ - CENTURY AVE SE- -T__-- J n 0 7 SUMMFRSFT IN CF m HUTCHINSON PUBLIC WORKS AND ENGINEERING City of Hutchinson Public Works Department Engineering 111 Hassan St SE Hutchinson, MN 55350 FEASIBILITY STUDY & ENGINEERING REPORT DATE: November 12, 2025 TO: Honorable Mayor & City Council members FROM: Brandon Braithwaite, City Engineer PROJECT: 2026 Street Improvement Projects Having studied the following proposed improvement, Public Works staff finds that the proposed project is feasible and recommend that it be constructed: L2/P26-02 2026 Street Improvement Projects: Boulder Circle SW (Boulder St SW to end of Cul-de-sac) Full depth reclamation of street, including partial curb and gutter replacement, water main repairs, restoration and appurtenances. Boulder Street SW (Roberts Rd SW to School Rd SW) Full depth reclamation of street, including partial curb and gutter replacement, storm sewer repairs, restoration and appurtenances. Larson Street SW (Roberts Rd SW to Lewis Ave SW) Full depth reclamation of street, including partial curb and gutter replacement, water main repairs, sanitary sewer repairs, restoration and appurtenances. Sherwood Street SE (Century Ave Se to 20' south of most Southerly Orchard Ave SE) Full depth reclamation of street, including partial curb and gutter replacement, water main repairs, restoration and appurtenances. Elks Drive SE (Sherwood St N E to Orchard Ave SE) Full depth reclamation of street, including partial curb and gutter replacement, storm sewer replacement, water main repairs, restoration and appurtenances. Orchard Avenue SE (Bradford Str SE to Elks Dr SE) Full depth reclamation of street, including partial curb and gutter replacement, storm sewer replacement, water main repairs, restoration and appurtenances. Bradford Street SE (Orchard Ave SE to 270' North of Randall Rd SE) Full depth reclamation of street/ sub -cut, including partial curb and gutter replacement, water main repairs, restoration and appurtenances. Randall Road SE (Bradford St SE to Century Ave SE) Full depth reclamation of street/sub-cut, including partial curb and gutter replacement, water main repairs, restoration and appurtenances. ESTIMATED COSTS TOTAL Construction Cost $ 2,433,433 Engineering $ 365,015 Administration $ 146,007 TOTAL ESTIMATED COSTS $ 2,944,455 ESTIMATED FUNDING TOTAL Assessments $ 594,834 City - GO Improvement Bond $ 1,904,821 City- Water Funds $ 130,965 City - Storm Water Funds $ 202,000 City - Wastewater Funds $ 111,835 TOTAL ESTIMATED FUNDING $ 2,944,455 RA HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Review of Truth in Taxation Hearing Agenda Item: Department: Administration LICENSE SECTION Meeting Date: 12/9/2025 Application Complete N/A Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff Communications, Requests Time Requested (Minutes): 5 License Contingency N/A Attachments: No BACKGROUND/EXPLANATION OFAGENDA ITEM: As a follow up to the Truth in Taxation Hearing from December 4, the Council should have a discussion on whether or not there is a desire to change anything in regards to the 2026 budget and/or tax levy. Requests (if any) for additional information from the Truth in Taxation Hearing and/or any changes to the proposed budget/levy will be presented at this time as well. BOARD ACTION REQUESTED: No action at this time. Final budget and levy will be approved at the December 23 meeting Fiscal Impact: Funding Source: FTE Impact: Budget Change: No 0 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 RA HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Second Reading, consideration of rezoning a property from MXD to C-3 located at Agenda Item: 155 Glen St NW. Department: Planning LICENSE SECTION Meeting Date: 12/9/2025 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: During the processing of Building Permits for the Landing Project, City staff found information from 2021 that the east side of the subject property had been zoned Mixed Use (MXD) to potentially accommodate a project from a different developer. Staff realized the zoning map had not been updated to show the rezoning to Mixed Use (MXD) in 2021 and the map showed the property was zoned C-3 commercial. This led to staff thinking the property was zoned C-3 when in fact it was zoned MXD. Because of this the property needs to be rezoned back to C-3 which was the zoning designation prior to 2021. This does not change anything related to project, as we are just fixing an internal error that unfortunately occurred. Nobody from the Public spoke regarding this request. There were no questions from the Planning Commission. The Planning Commission voted unanimously (6-0) to recommend approval of the rezoning. BOARD ACTION REQUESTED: Approval of second reading of rezoning. 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.8606 ORDINANCE NO. 25-867 AN ORDINANCE OF THE CITY OF HUTCHINSON, MINNESOTA, TO REZONE PROPERTY AT 155 GLEN 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 interest of the City to rezone the property from MXD to C-3. Section 2. That the property to be rezoned to C-3 is the following address and legal description: 155 Glen St NW — Lot 1, Block 1, The Landing Section 3. This ordinance shall take effect from and after passage and publication. Adopted by the City Council this 9th day of December, 2025. ATTEST: Matthew Jaunich, City Administrator Gary T. Forcier, Mayor HUTCHINSON A CITY ON PURPOSE. DIRECTORS REPORT - PLANNING DEPARTMENT To: Hutchinson Planning Commission From: Dan 7ochum, AICP Date: November 18, 2025 Application: Consideration of Rezoning a property from MXD to C-3 located at 155 Glen St NW. Applicant: City of Hutchinson Owner: Hutchinson — The Landing, LLC REZONING REQUEST: During the processing of Building Permits for the Landing Project, City staff found information from 2021 that the east side of the subject property had been zoned Mixed Use (MXD) to potentially accommodate a project from a different developer. Staff realized the zoning map had not been updated to show the rezoning to Mixed Use (MXD) in 2021 and the map showed the property was zoned C-3 commercial. This led to staff thinking the property was zoned C-3 when in fact it was zoned MXD. Because of this the property needs to be rezoned back to C-3 which was the zoning designation prior to 2021. This does not change anything related to project, as we are just fixing an internal error that unfortunately occurred. Existing Zoning: Property Location: Existing Land Use: Adjacent Land Use And Zoning: Downtown Plan: Zoning History: Applicable Regulations: Rezoning Consideration: GENERAL INFORMATION Mixed Use (MXD) 155 Glen St NW Vacant — medical center site Commercial and Residential Multi -family redevelopment Medical Center for many years. Medical Center was demolished about 10-12 years ago. Sections 154.173 of the City Code In considering a rezoning request, the Planning Commission should review the proposed rezoning for consistency with the surrounding area, City Plans and the purpose of the Zoning Ordinance. Staff Recommendations: Staff recommends rezoning the properties from MXD to C-3 for the reasons noted above. Staff recommends approval of the request with the following findings and recommendations: 1. The rezoning is consistent with long-range plans the City has adopted (Downtown Plans). 2. The properties are adjacent to C-3 zoned property. 3. The property is proposed to be developed into a multi -family apartment project. RA HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Second Reading - Summary Ordinance - Consideration of Subdivision Ordinance Agenda Item: Agreement section 153.072 Department: Planning LICENSE SECTION Meeting Date: 12/9/2025 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: In section 153.072 of the City of Hutchinson subdivision ordinance there are fees that are noted within the ordinance. It is very uncommon to have the actual fees noted in the ordinance and more common to note that there are fees and that they are subject to the City Fee schedule that is adopted by the City Council every year. Staff think it would be a good idea to take the fees out of the ordinance so that the ordinance doesn't have to be amended every time a fee is changed. It should be noted that many of these fees have been the same for the past 20-30 years and should be increased. The Parks Board is reviewing the fees and is planning on making some recommendations to the City Council for the fee schedule. Nobody from the Public spoke regarding this request. The Planning Commission asked who sets the fees noted in the fee schedule and staff answered that the City Council sets all fees annually. The Planning Commission voted unanimously (6-0) to recommend approval of the ordinance amendment. BOARD ACTION REQUESTED: Approval of second 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. 8608 ORDINANCE NO. 25-869 AN ORDINANCE AMENDING SECTION 153.072, PUBLIC SITES, OPEN SPACES AND BICYCLE AND PEDESTRIAN PATHS 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 amend Section 153.072, Public Sites, Open Spaces and Bicycle and Pedestrian Paths: § 153.072 PUBLIC SITES, OPEN SPACES AND BICYCLE AND PEDESTRIAN PATHS. The following requirements are applicable to all subdivisions within the jurisdiction of the Parks, Recreation and Community Education Advisory Board, Light Traffic Task Force, Planning Commission and City Council. (A) In subdividing land or resubdividing an existing plat, due consideration shall be given to the subdivision and by the planning committees upon review, to the dedication or reservation of suitable sites for schools, conservation areas, bicycle and pedestrian paths or open spaces and parks. Where a proposed public park, bicycle and pedestrian path, recreational area or open space, as determined by the Comprehensive Plan, Planning Commission and Council, is located in whole or in part within a subdivision, the subdivider shall dedicate those lands to the city; provided, however, that, the total dedication (exclusive of public streets, alleys and pedestrian ways, and exclusive of all other purchased sites such as fire and police stations, water towers and treatment plants and sewer lift stations) shall be consistent with the following requirements. follows: (1) For land within a residential zone, formulas for land dedication shall be as (a) For Zoning Districts R-1: a land dedication of 7.5% of the undeveloped site or its fair market land value, (b) For Zoning Districts R-2: a land dedication of 12% of the undeveloped site or its fair market land value, (c) For Zoning Districts R-3 and R-4: a land dedication of 15% of the undeveloped site or its fair market land value, (d) For Zoning Districts Commercial and 1/C-1: a negotiated percentage of land dedication of the undeveloped site or its fair market land value, and (e) For business park or industrial zoned subdivision: none required, with exception of comprehensively planned bicycle and pedestrian paths which shall be by easement. (2) Infrastructure assessment costs incurred with any of the land dedication above shall be calculated and levied against the bicycle and pedestrian paths, park or open space by linear foot of frontage. In no case shall the assessment cost levied against the park or bicycle and pedestrian path exceed 60% of the value of the land dedicated. (3) For the purpose of this division (A), the following definition shall apply unless the context clearly indicates or requires a different meaning. FAIR MARKET LAND VALUE. The market value of the land within the plat or subdivision as of the date presented to the Council for preliminary approval, as determined by the City Assessor, or the sale price, whichever is higher, in the some manner as they shall determine the estimated market value of land for tax purposes, excluding from that determination any value added to the land by improvements serving the land, but including in that determination the highest and best force at the time of the platting. (4) The city shall have the option of requiring a cash contribution in lieu of the land dedication set forth in division (A)(1) above. The dedication fee amounts are found within the City Fee schedule that is amended from time to time. G-96" 649.4 " 199-p-d ,Q +" fe.4 ,.4,Q9 6 .",,44 D ir• rr6-G-s" (E9T "64P+r- ieTTTg'District T3 TD (61 zepipg District GeFP.RreFc �e�Besi�aess�stric+zZer+e� !Negotiated c-asla ee,T�tie,T sb e,Te-reed. (5) Ae-C4 Uegirme-the-St!.19_d4�444eF t6 erd'9it eU P,-evace G PG,-tie�e�TEp F6Trc^ma (6) The cash and land dedication value set forth above shall be reviewed by the Parks, Recreation and Community Education Advisory Board and the Light Traffic Task Force on an annual basis and a revised schedule, if any, shall be set forth by the Council. (B) When structures are constructed on property which has been previously platted and on which plat no park or bicycle and pedestrian path dedication on record in cash or land was given to the city, a park or bicycle and pedestrian path dedication fee in accordance with the schedules hereinafter set forth shall be paid at the time of the subdivision agreement or when the building permit is issued. If the park or bicycle and pedestrian path dedication as indicated on record has been previously satisfied at the time of platting in accordance with the requirements then in existence, then no further fee shall be levied. If a partial payment has been made, then the balance of the development shall be charged the rate set forth in division (A)(1) above. (C) When building permits are issued on property which is not platted and is not required to be platted prior to receiving a building permit, a fee shall be paid at the time of building permit issuance in accordance with the above schedule. (D) Sums of money so received by the city shall be placed in a special account to be known as the Public Sites and Equipment Fund and allocated by the Council solely for the acquisition of land or purchase of equipment for public parks, recreation areas or open spaces, bicycle and pedestrian path development of existing parks and recreational areas, or debt retirement in connection with the land or equipment previously acquired for parks, bicycle and pedestrian paths, recreational areas or open areas. (E) For soil and water conservation, pursuant to state statute, the following may be required. The subdivider shall be responsible for providing site development plans with provisions for the control of drainage, erosion and siltation if plans are considered necessary by the City Engineer or by law, for the purpose of soil and water conservation. (F) In high density zoning districts, the Council may require developments of 24 units or more to create a private entity to maintain some form of on -site recreation for use by the site residents, specifically pre-school children. The Council will use the Park and Open Space Study definition of "tot lot area" as a minimum standard. This requirement may be in addition to the dedication of land or cash for park or recreation purposes. EFFECTIVE DATE OF ORDINANCE. This ordinance shall take effect upon is adoption and publication. Adopted by the City Council this 9th day of December, 2025. Attest: Matt Jaunich Gary T. Forcier City Administrator Mayor First reading of the Ordinance: November 25, 2025 Second reading of the Ordinance: December 9, 2025 RA HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. First Reading - Consideration of a Rezoning properties from R-2 to C-4 located at Agenda Item: 552, 554 and 564 Jefferson St SE. Department: Planning LICENSE SECTION Meeting Date: 12/9/2025 Application Complete N/A Contact: Dan Jochum Agenda Item Type: Presenter: Dan Jochum Reviewed by Staff New Business Time Requested (Minutes): 5 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: Jon Betker has submitted a rezoning application for the properties located at 552, 554, 564 Jefferson St SE. The properties are currently zoned R-2 Medium Density Residential; however, these properties had been used as a commercial use prior to a fire in the late 2010s. If the re -zoning application were to be approved the applicant is looking at constructing a building for his construction business. Two neighbors spoke regarding this item. One asked about the property line and who was responsible for maintaining the shrubs on the line. Another just wanted it in the public record that he attended the meeting. The Planning Commission voted unanimously (6-0) to recommend approval of the rezoning to change the zoning from R-2 to C-4. BOARD ACTION REQUESTED: Approval of land rezoning. 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.8607 ORDINANCE NO. 25-868 AN ORDINANCE OF THE CITY OF HUTCHINSON, MINNESOTA, TO REZONE PROPERTY AT 552, 554 and 564 JEFFERSON ST SE. 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 interest of the City to rezone the property from R-2 to C-4. Section 2. That the property to be rezoned to C-4 is the following address and legal description: 552 Jefferson St SE — Lot 1, Block 1, Subdivision of Block 16, Bonniwell's 2nd Addition 554 Jefferson St SE - Lot 2, Block 1, Subdivision of Block 16, Bonniwell's 2nd Addition 564 Jefferson St SE - Lot 3 (except the S 25'), Block 1, Subdivision of Block 16, Bonniwell's 2nd Addition Section 3. This ordinance shall take effect from and after passage and publication. Adopted by the City Council this 23rd day of December, 2025. ATTEST: Matthew Jaunich, City Administrator Gary T. Forcier, Mayor HUTCHINSON A CITY ON PURPOSE. DIRECTORS REPORT - PLANNING DEPARTMENT To: Hutchinson Planning Commission From: Dan Jochum, AICP Date: November 18, 2025 Application: Consideration of Rezoning a property from R-2 to C-4 at 552, 554 and 564 Jefferson St SE. Applicant: Jon Betker Owner: B & C Hutchinson, LLC Comprehensive Plan Amendment and Rezoning Jon Betker has submitted a rezoning application for the properties located at 552, 554, 564 Jefferson St SE. The properties are currently zoned R-2 Medium Density Residential; however, these properties had been used as a commercial use prior to a fire in the late 2010s. If the re- zoning application were to be approved the applicant is looking at constructing a building for his construction business. Indicates property described in this notice 552 �k 552 y N 564 O w GENERAL INFORMATION Existing Zoning: R-2 Medium Density Residential Property Location: 552, 554 , 564 Jefferson St SE Existing Land Use: Outdoor storage Adjacent Land Use: Residential and Commercial Adjacent Zoning: R-2 and C-4 Commercial Comprehensive Plan: Medium Density Residential Zoning History: Was a car dealership/auto shop for many years and was more recently an electric motor shop prior to the fire that happened about 6-7 years ago. Applicable Regulations: Sections 154.173 of City Code Comprehensive Plan Amendment and Rezoning: The property is currently zoned R-2 Medium Density Residential. Although this parcel had been zoned residential it has never been a residential property. It most recently was a commercial structure that housed the electric motor shop. Since the fire destroyed the building and it was demolished the site has been used for storage by 6&C Plumbing and Heating. The property across the street owned by Pro Auto is zoned C-4 commercial. Since there is property adjacent to the subject lots zoned commercial and the property has always been used as a commercial property there is solid finding of fact that would support the property being guided commercial on the Comprehensive Plan Future Land Use Map. Additionally, there would be solid findings to rezone the property to C-4 Commercial based on the Comprehensive Plan amendment. Figure 1. Existing Zoning . n : UJ -� Ypswl - 0 �.� rt - Z C 4 -Y5 x SE S � may, eh FAIR AVE SE Project Process The following steps are required in order for this project to move forward. • Rezoning Request — Under Consideration October 2025 • Building Permit Submittal • Building Permit Approval Recommendation: Staff recommends approval of the rezoning with the following items to be addressed with the following findings: 1. Amend Comprehensive Plan future land use designation to Commercial for the subject parcel due to the parcels being adjacent to commercially zoned property and the fact that the property has been used as a commercial property for past 100 or so years. 2. Rezone property to C-4 Fringe Commercial as it is consistent with Comprehensive Plan amendment approved in conjunction with the rezoning. RA HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Approve/Deny Amending Attachment A of the Hutchinson Fire Relief Association Agenda Item: Bylaws - Increasing Benefit Amount to Members Department: Admin/Fire Relief LICENSE SECTION Meeting Date: 12/9/2025 Application Complete N/A Contact: Matt Jaunich Agenda Item Type: Presenter: Matt/Fire Relief Reviewed by Staff New Business Time Requested (Minutes): 5 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: At their November Fire Relief Association meeting, the Hutchinson Fire Relief Association approved an amendment to their bylaws increasing their benefit amount to Relief Association members. The increase would move the monthly benefit amount from $17 to $19, and the lump sum benefit amount from $3,660 to $4,460. The increases would go into effect on January 1, 2026. 1 have included a copy of the Relief Associations most recent Actuarial Study that showed a justification for this request. The current benefit amount has a funding ratio of 118%. This change would lower that funding ratio to 103%. The action of the Council will be to update attachment "A" to the Fire Relief bylaws. A copy of which has been included. In regards to the monthly benefit amount, please note that these costs are covered by the Hutchinson Fire Relief Association monies. While the Hutchinson Fire Relief Association is responsible for the Association's finances, the City has to approve of the benefit amount. I have included a memo from the State Auditor that helps explain this. Staff and members from the Fire Relief Association will be present to answer any questions you may have. BOARD ACTION REQUESTED: Approve/Deny Increasing monthly and lump sum benefit amounts for members of the Hutchinson Fire Relief Association. Fiscal Impact: Funding Source: FTE Impact: Budget Change: No 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 HUTCHINSON FIRE DEPARTMENT Addendum to January 1, 2025 Actuarial Valuation Projected Cost of Benefit Increases Monthly benefit multiplier: Lump sum benefit multiplier:' Benefit effective January 1: Liability measurement date of January 1, 2025 $17.00 $18.00 $19.00 $19.50 $3,660 $4,060 $4,460 $4,660 2025 2025 2025 2025 A. Actuarial accrued liability (AAL) 1. Active members $ 875,010 $ 950,267 $ 1,025,525 $ 1,063,153 2. Vested terminated members 85,715 94,930 104,145 108,752 3. Retired members 1,522,686 1,612,256 1,701,825 1,746,610 4. Spouses receiving benefits 187,873 198,924 209,975 215,501 5. Disabled members receiving 0 0 0 0 6. Total actuarial accrued liability 2,671,284 2,856,377 3,041,470 3,134,016 7. AAL change from current benefit rate 185,093 370,186 462,732 B. Special fund assets 3,143,200 3,143,200 3,143,200 3,143,200 C. Unfunded actuarial accrued (471,916) (286,823) (101,730) (9,184) liability (A.6. - B.) D. Credit for surplus (47,192) (28,682) (10,173) (918) E. Amortization payment 1. Amortization period N/A N/A N/A N/A 2. Payment 0 0 0 0 F. Normal cost 45,532 49,713 53,893 55,983 G. Annual contribution payable: 2026, 2027 2026, 2027 2026, 2027 2026, 2027 1. Preliminary contribution (D.+E.+F.) (1,660) 21,031 43,720 55,065 2. Admin expense (prior year x 1.035) 23,407 23,407 23,407 23,407 3. Annual contribution (1.+2., not less than $0) 21,747 44,438 67,127 78,472 4. Estimated State Aid (162,393) (162,393) (162,393) (162,393) 5. Estimated City contribution (3.+4., not less 0 0 0 0 than $0) 6. Estimated change in City contribtuion 0 0 0 H. Funded ratio 118% 110% 103% 100% Other than the potential benefit increases shown above, all results in this exhibit are based on the census data, assets, assumptions, methods, plan provisions and additional risk assessment disclosed in the 1/1/2025 actuarial valuation report dated 4/14/2025. All liability results and estimated contributions are presented as of 1/1/2025. Please note that results calculated using updated assets and liabilities may be substantially different. Additional pension risk information is included in the 2025 actuarial funding report. ' The lump sum benefit increase is two times the actuarial equivalent of the monthly benefit increase. L/D/C/R: 3/SAK/EMK/SES 9/12/2025 www.VlAactuarial.com ATTACHMENT A - BENEFIT LEVEL BENEFIT LEVEL AMOUNT DATE APPROVED BY RELIEF ASSOCIATION DATE RATIFIED BY CITY EFFECTIVE DATE Lump Sum: $3,660 per year of service credit up to a maximum of 30 years October 8, 2020 October 2711, 2020 October 8, 2020 *Monthly: $17 per year of service credit up to a maximum of 30 years January 13, 2016 January 13, 2016 *Monthly benefit amount is only available for Active Members hired before October 8, 2020 ATTACHMENT A — BENEFIT LEVEL BENEFIT LEVEL AMOUNT DATE APPROVED BY RELIEF ASSOCIATION DATE RATIFIED BY CITY EFFECTIVE DATE Lump Sum: $4,460 per year of service credit up to a maximum of 30 years November 17, 2025 December 911, 2025 January 1st, 2026 *Monthly: $19 per year of service credit up to a maximum of 30 years November 17, 2025 December 9t", 2025 January 1st, 2026 *Monthly benefit amount is only available for Active Members hired before October 8, 2020 STATE OF MINNESOTA A Suite 500 Julie Blaha t"7525 Park Street State Auditor office ottlu state Auditor Saint Paul, MN 55103 Statement of Position Required Municipal Contributions to Fire Relief Associations State law requires a municipality to pay a minimum annual contribution to the special fund of its affiliated defined -benefit fire relief association, unless the special fund is fully funded or state aid is sufficient to cover the municipal obligation.' The special fund is a fund established and maintained within a relief association to pay service pensions to retiring members. A pension plan is "fully funded" when there are sufficient assets to cover future liabilities. The funded status of a special fund is affected primarily by changes to benefit levels (i.e., liabilities increase) and by investment gains or losses (i.e., assets increase or decrease). Benefit increases and investment losses decrease a fund's assets, which could increase the likelihood that a municipal contribution will be required. Whether a municipal contribution is required and the contribution amount are determined by using a statutory formula. The formula varies depending on whether the plan pays lump -sum service pensions or pays monthly service pensions.2 Lump -Sum Pension Plans For relief associations that solely pay lump -sum service pensions, the minimum required municipal contribution equals the financial requirements of the special fund minus the anticipated amount of state aid to be received during the following calendar year. In addition, five percent annual interest on the assets is subtracted.3 The minimum required municipal contribution is calculated by the officers of the relief association during the month of July for the following year.' To calculate the minimum required municipal contribution, the officers need to know the special fund's financial requirements for the following year. In July, the officers calculate the financial requirements for the following year and the overall funding balance for the current calendar year. 1 Minn. Stat. § 424A.092, subds. 3 and 4; Minn. Stat. § 424A.093, subd. 5. In some instances, a municipal contribution may be required even though the pension plan is fully funded. 25ee Minn. Stat. § 424A.092, subd. 3 (for lump -sum pension plans) and Minn. Stat. § 424A.093, subd. 5 (for monthly pension plans). There is no required municipal contribution for a defined contribution plan. 3 Minn. Stat. § 424A.092, subd. 3(d). 4 The Schedule Form, provided by the Office of the State Auditor, calculates the amount of any required municipal contribution for the following year. For example, the 2025 Schedule Form will calculate the required municipal contribution amount to be paid during 2026. Reviewed: February 2025 Revised: February 2025 This Statement of Position is not legal advice and is subject to revision. Main: (651) 296-2551 • Fax: (651) 296-4755 • TTY: (800) 627-3529 • State.Auditor@osa.state.mn.us • www.osa.state.mn.us An equal opportunity employer If the special fund is not fully funded, the financial requirements for the following calendar year are determined by taking into account 1) the total accrued liability for all active and deferred members of the relief association, calculated for the following calendar year; 2) the increase in the total accrued liability for the following calendar year over the present calendar year; 3) the amount of anticipated future administrative expenses; and 4) one -tenth of the deficit resulting from either an increase in the service pension or an investment loss occurring over the last ten years. If the special fund is fully funded, the financial requirements for the following calendar year are the total of 1) the increase in the total accrued liability for all members for the following calendar year over the present calendar year; and 2) the amount of anticipated future administrative expenses. Monthly Pension Plans For relief associations that offer or pay monthly service pensions, the financial requirements of the special fund are based on the most recent actuarial valuation. Each relief association must determine the minimum obligation of the municipality for the following calendar year "on or before August 1 of each year."' The "most recent actuarial valuation" included in the calculation is generally a valuation from January 1 of the same year or December 31 of the prior year. For most plans, the Governmental Accounting Standards Board (GASB) requires an actuarial valuation every two years.6 in addition, a new actuarial valuation or actuarial impact estimate is required whenever there is a benefit change. For additional information on how the financial requirements and municipal contribution are determined, see the Office of the State Auditor's Statement of Position titled "Municipal Contribution Calculations for Monthly Plans." Defined Contribution Plans For relief associations with defined contribution plans, investment gains and losses are allocated to the individual firefighters. Defined contribution plans by their nature are always fully funded. The municipality has no obligation to make contributions to offset losses if they occur, although the municipality can make a voluntary contribution to the special fund if it chooses. Benefit Levels The level of benefits paid by a relief association is usually set by agreement between the relief association and the municipality. To change the benefit level, a relief association's board of trustees should discuss the change during a board meeting and vote to adopt a bylaw amendment containing the new benefit level. The board of trustees should follow the relief association's bylaw amendment procedures and Open Meeting Law requirements. After the benefit level change has been approved by the relief association, the board of trustees should seek municipal approval of the amended bylaws containing the benefit level change. The city council or town board can choose to ratify the changes or choose not to ratify the changes. Once the amended bylaws containing the benefit level change are ratified by the municipality, however, the benefit level is guaranteed by the municipality. The s Minn. Stat. § 424A.093, subd. 5(a). 6See Minn. Stat. § 424A.014, subd. 1(financial statements required to be in compliance with generally accepted auditing standards); GASB Statement 25, para. 35 (biennial actuarial valuations required for financial reporting purposes). Reviewed: February 2025 2 Revised: February 2025 municipality is responsible for ensuring the special fund has sufficient assets to cover approved benefit levels. For those relief associations that are affiliated with an independent nonprofit firefighting corporation rather than a municipal fire department, benefit level changes must be approved by the board of the independent corporation. In addition, the independent nonprofit firefighting corporation is responsible for making any required contributions to the relief association. In limited circumstances, a relief association has the authority to increase its benefit level without municipal ratification. However, if a municipal contribution is later required, the bylaw amendment establishing the benefit level increase that was adopted without municipal approval is no longer effective on July 3V Any service pension payable after that date may be paid only in accordance with the bylaws as amended with municipal ratification.$ Municipalities do not have authority to unilaterally change a relief association's benefit level. Municipalities cannot initiate a change in benefit levels, rescind benefit increases, or give contingent approval to benefit changes. Payment of Required Municipal Contributions To fulfill its obligation to provide at least the minimum required municipal contribution, a municipality may use any source of public revenue, including a tax levy. For monthly pension plans, for example, a municipality may levy taxes "without any limitation as to rate or amount and irrespective of any limitations imposed" by any other law or regulation.' If the relief association's benefit level is approved by the affiliated municipality, the municipality is required to make any contributions that become due at that benefit level. Municipal contributions are to be paid during the year in which the contribution is required. If the municipality does not include the full amount of the minimum municipal contribution in its levy for any year, the officers of the relief association must certify that amount to the county auditor, who must spread a levy in the amount of the certified minimum municipal contribution on the taxable property of the municipality.lo ' Minn. Stat. § 424A.02, subd. 10. $ Minn. Stat. §§ 424A.092, subd. 6; 424A.093, subd. 6. e Minn. Stat. §§ 424A.093, subd. 5(e); 424A.092, subd. 4(c). io Minn. Stat. §§ 424A.092, subd. 4(e); 424A.093, subd. 5(f). Reviewed: February 2025 Revised: February 2025 Library Board Meeting October 27, 2025 4:30 p.m., Library Meeting Room Members present: Dianne Wanzek, Margaret Hoffman, Sue Griep, Julie Lofdahl, Carolyn Ulrich, Mary Christensen Ex-Officio: Katy Hiltner Meeting was called to order at 4:30, minutes of the September 22, 2025 meeting were reviewed and approved. Old Business 1. Program Reports Suzanne Fairchild returned to teach another Legacy funded class called "Painting with Wool" at The Depot to 15 participants. She does a great job, all who participated enjoyed the evening and took home beautiful projects. Programs ■ Story time — 3 times so far this month with attendance of 48, 45, and 38 ■ No LEGO Club or Coding Club this month ■ Graphic Novel Book Club — 6 attendees ■ Pumpkin Bling — had 35 kids and 26 adults attend, pumpkins were donated. 2. Library Postings Library Assistant II — Mary Anderson will fill this position. She will work Tuesday and Thursday evenings. Library Assistant I — Ellie Fischer will fill this position, working Monday mornings and Friday afternoons. 3. End Cap Project They are currently in production at Goebel's, and Katy is gathering funds from various entities. We have financial support from the Stearns Foundation, Stearnswood, the Goebel Foundation, and the City of Hutchinson. New Business 1. Library clock The clock needed a part and will be back on Tuesday. Bob Malone generously donated his time. 2. November Calendar of Events We will have Dinosaur themed activities all month, along with a Dinosaur Escape Room. Some of these activities include: V Guess the Dinosaur V Fossil rubbing plates V Create your dinosaur species V Dinosaur Games V Dinosaur Hospital pretend play 3. December Meet the Author • Jim Kahmann, author of My Life in Baseball will be hereon 1.2/3 at 1-:30, sponsored by Friends of the Library. 4. Friends of the Library Project Bookshelf From 11/1 to 12/6 - They will be accepting new books and monetary donations for children ages o-18. 5. Hutch Health Holiday Event Most activities (Santa, etc.) will be outside in Library Square. The Library will provide space for stories on second floor, coloring, and crafts donated by Hutch Health. Cookies and cocoa will be available outside. 6. November Holidays The Library will be closed on Veterans Day (ii/ii), and Thanksgiving (11/27). 7. Other Katy is checking into the cost of signs at Crow River Signs. They will be similar to the signs over the circulation desk and will help patrons find the area they are looking for quickly. There may be a grant for this through Prairielands. Katy would like to get the chairs recovered in the future; she has submitted a grant request with the Hutchinson Area Foundation if they would help with that. The Hutchinson Area Foundation donated generously last year for the children's book bins, so a second request may not be feasible. 8. Donations and Grants The Legion Auxiliary donated $20 for a memorial book for Deb Schwanke. We will meet next on November 24, 2025 Respectfully submitted, Sue Griep Page 2