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cp05-13-1997 cAL. Ab AWL MAY I SUNDAY MONDAY TUESDAY 1997 -11- -12- -13- 7:30 a.m. - City Newsletter HUTCIIINSON 1:00 p.m. - HATS Board Meeting at Committee Meeting in Main CITY HATS Facility Conference Room CALENDAR 5:30 p.m. - Light Traffic Advisory 4:00 p.m. - City Council Workshop WEEK OF Board Meeting at City Center in Main Conference Room Re. Main Conference Room 1998 Department Plans May I I to May 5:30 p.m. -City Council Mccwig in Council Chambers WEDNESDAY THURSDAY FRIDAY SATURDAY -14- -15- -16- -17- CONFERENCF /SEMINAR1 10:00 a.m. - Directors Meeting in VACATION Staff Conference Room 1:00 p.m. - Process Improvement 5/12 - 5/21 - Doug Meier (V) Council Meeting in Main 5/13 -16 -Kandy UeVries (C) Conference Room C = Conference S = Seminar V = Vacation AGENDA REGULAR MEETING - HUTCHINSON CITY COUNCIL TUESDAY, MAY 13. 1997 CALL TO ORDER - 5:30 P.M. INVOCATION - Rev. Tim Caspers. Shalom Baptist Church CONSIDERATION OF MINUTES MINUTES OF APRIL 22, 1997 CONSENT AGENDA (a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS BUILDING OFFICIAL'S REPORT - APRIL 1997 HUTCHINSON AREA HEALTH CARE BOARD MINUTES OF MARCH 18. 1997 TREE BOARD MINUTES OF MARCH 20, 1997 4. LIBRARY BOARD MINUTES OF APRIL 28, 1997 5. PARKS, RECREATION & COMMUNITY EDUCATION ADVISORY BOARD MINUTES OF APRIL 3, 1997 6. HUTCHINSON LIGHT TRAFFIC ADVISORY BOARD MINUTES OF APRIL 14, 1997 (b) RESOLUTIONS AND ORDINANCES ORDINANCE NO. 97 -194 - AN ORDINANCE EXTENDING THE CORPORATE LIMITS OF THE CITY OF HUTCHINSON TO INCLUDE CERTAIN LAND WVNED BY PRAIRIE SENIOR COTTAGES TO AND ABUTTING THE CITY OF HUTCHINSON PURSUANT TO MINNESOTA STATUTES 424.033, SUBDIVISION 2(3) (SECOND READING AND ADOPT) 2. ORDINANCE NO. 97 -195 - AN ORDINANCE AMENDING ZONING ORDINANCE NO. 464, SECTIONS 8.05, 8.06 AND 9 REGARDING TWO FAMILY DWELLING UNITS (SECOND READING AND ADOPT) (c) TEMPORARY ON -SALE LIQUOR LICENSE FOR HUTCHINSON ELK INC. (d) RATIFYING APPOINTMENT OF JEFF HAAG TO PLANNING COMMISSION (e) HUTCHINSON JAYCEE WATER CARNIVAL REQUESTS /ACTIVITIES > PERMIT FOR CARNIVAL MIDWAY SHOW > CLOSE STREETS > PARADE PERMIT FOR KIDDIE DAY PARADE > PARADE PERMIT FOR GRANDE DAY PARADE > PERMIT FOR CONCESSION STAND > PERMIT FOR WATER CARNIVAL "OUTDOOR DANCE" > PERMIT FOR WATER CARNIVAL DANCE CITY COUNCIL AGENDA - MAY 13, 1997 • PERMIT FOR FIREWORKS DISPLAY • ON SALE "NON- INTOXICATING MALT LIQUOR LICENSE • PERMIT FOR SET -UPS AT WATER CARNIVAL DANCE • WAIVER OF FEES AND RENTAL COSTS FOR WATER CARNIVAL (f) PARADE PERMIT FOR AMERICAN LEGION/VFW MEMORIAL DAY PARADE (g) OUT -OF -STATE TRAVEL BY CITY ATTORNEY (h) SOLID WASTE SEPARATION /WASTE EDUCATION GRANT AGREEMENT WITH MINNESOTA OFFICE OF ENVIRONMENTAL ASSISTANCE (i) CONTRACT FOR CONTINUING DISCLOSURE SERVICES WITH EHLERS & ASSOCIATES, INC. (j) ITEMS RELATING TO PLASTIC SPECIALTIES MANUFACTURING, INC. AND PLASTIC SPECIALTIES LLC: DEVELOPMENT AGREEMENT, DEVELOPMENT DISTRICT NO. 4 ASSESSMENT AGREEMENT EQUIPMENT LOAN Action - Motion to approve consent agenda 5. PUBLIC HEARIN G -- 6:00 P.M. (a) AMENDMENTS TO DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 4 AND TAX INCREMENT FINANCING PLANS FOR TAX INCREMENT DISTRICT NOS. 4,5 AND 6 Action - Motion to close hearing - Motion to reject - Motion to approve and adopt Resolution No. 10838 (b) PROPOSED AMENDMENTS TO DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO.4 AND TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT DISTRICT NO. 4 AND ON PROPOSED TAX INCREMENT FINANCING PLAN (ESTABLISH TAX INCREMENT DISTRICT NO. 12) Action - Motion to close hearing - Motion to reject - Motion to approve and adopt Resolutions No. 10839 and No. 10840 COMMUNICATIONS. REQUESTS AND PETITIONS (a) PRESENTATION BY FIRE CHIEF REGARDING CURRENT STATUS OF FIRE DEPARTMENT Action - (b) PRESENTATION BY DIRECTORS ON STATUS OF 1997 FIRST QUARTER DEPARTMENTAL PLANS to Action - CITY COUNCIL AGENDA - :KAY 13, 1997 0 7. UNFINISHED BUSINESS (a) CONSIDERATION OF REQUEST TO CHANGE STREET NAME OF ONE BLOCK LOCATED IN FRONT OF AMERICAN LEGION POST 96 (DEFERRED APRIL 22, 1997) Action - S. NEW BUSINESS (a) CONSIDERATION OF HARDEES PARKING LOT ISSUES ALONG GLEN STREET Action - Motion to reject - Motion to approve Franchise Agreement and waive first reading of Ordinance and set second reading for May 27, 1997 (b) CONSIDERATION OF TERMINATING LEASE AGREEMENT WITH CROW RIVER ARTS. INC. Action - Motion to reject - Motion to approve termination 9. MISCELLANEOUS (a) COMMUNICATIONS 10. CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS (a) VERIFIED CLAIMS Action - Motion to approve and authorize payment from appropriate funds 11. ADJOURNMENT 40 3 MINUTES REGULAR MEETING - HUTCHNSON CITY COUNCIL TUESDAY, APRIL 22, 1997 1. The meeting was called to order at 5:30 p.m. by Mayor Torgerson. Present: Mayor Marlin Torgerson, Council Members John Mlinar, Kay Peterson and Don Erickson. Absent: Council Member Bill Craig. Also present: City Administrator Gary D. Plotz, City Engineer John Rodeberg and City Attorney G. Barry Anderson. 2. The invocation was given by the Reverend Gerhard Bode. PRESENTATION OF PLAQUES OF RECOGNITION ♦ JERRY CORNELL ♦ CRAIG LENZ ♦ GLENN MATEJKA The Mayor presented plaques of recognition to Craig Lenz and Glenn Matejka in appreciation for the time they served on the Planning Commission. Jerry Cornell was unable to attend the City Council meeting. 3. MINUTES The minutes of April 8, 1997 and bid opening of April 7, 1997 were approved as presented. 4. CONSENT AGENDA 16 (a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS 1. FINANCIAL/INVESTMENT REPORT - MARCH 1997 2. PLANNING COMMISSION MINUTES OF MARCH 18, 1997 3. TREE BOARD MINUTES OF JANUARY 30, 1997 4. PARKS. RECREATION & COMMUNITY EDUCATION ADVISORY BOARD MINUTES OF MARCH 6, 1997 (b) RESOLUTIONS AND ORDINANCES I . RESOLUTION NO. 10829 -RESOLUTION TO APPROPRIATE /SALE AT AUCTION OF UNCLAIMED PROPERTY (c) DELINQUENT WATER AND SEWER ACCOUNTS (d) ACCEPTANCE OF DEFENDANT'S RULE 68 OFFER OF JUDGMENT REGARDING WAAGE LITIGATION (e) TRANSIENT MERCHANT PERMIT FOR RICHARD SEIPEL, D.B.A. THE COUNTRY STOP (f) BID ADVERTISEMENT ON MAY 20, 1997 FOR RECREATION CENTER ROOF REPLACEMENT It (g) ADOPTION OF DOCUMENTS RELATING TO PLASTIC SPECIALTIES MANUFACTURING, NC. CITY COUNCIL MINUTES - APRIL 22, 1997 it 1. PROMISSORY NOTE CALLING FOR 5100,000 LOAN FROM CITY ECONOMIC DEVELOPMENT FUND SECURED BY STANDARD FORM SECURITY AGREEMENT 2. PROMISSORY NOTE CALLING FOR $100,000 LOAN FROM CITY ECONOMIC DEVELOPMENT FUND SECURED BY MORTGAGE ON PLASTIC SPECIALTIES LLC PROPERTY 3. SITE PURCHASE AGREEMENT FOR PLASTIC SPECIALTIES LLC 4. ADOPTION OF ORDINANCE NO. 97 -193 AUTHORIZING SALE TO PLASTIC SPECIALTIES LLC (h) IMPROVEMENT PROJECT CHANGE ORDERS I. LETTING NO. TPROJECT 96 -11 & 13 (CHANGE ORDER NO. 2); 51,871.95 2. LETTING NO. 9/PROJECT 96 -16 & 18 (CHANGE ORDER NO. 2); $1,996.00 3. LETTING NO. 2/PROJECT 97 -02 (CHANGE ORDER NO. 1); $460.00 (i) LANDSCAPE PARTNERSHIP COOPERATIVE AGREEMENT #76013 WITH MN/DOT FOR LANDSCAPE IMPROVEMENTS ALONG T.H. 22 IN HUTCHINSON (j) GAMBLING DEVICES LICENSE FOR DUCKS UNLIMITED (k) "OT SALE" NON - INTOXICATING MALT LIQUOR LICENSE: CROW RIVER COUNTRY CLUB KING'S WOK GODFATHER'S PIZZA LITTLE CROW BOWLING LANES GOLD COIN, INC. PIZZA HUT HUTCH. HUSKIES BASEBALL ASSOC. (1) "OFF SALE" NON - INTOXICATING M2 CASH WISE CITGO -QUIK MART ERICKSON FREEDOM STATION #13 ERICKSON FREEDOM STATION # 48 (m) COMMERCIAL LOAN THROUGH PARTNERSHIP \L'1 LLOUOK LlUtNJL: FOOD -N -FUEL RICK'S CAST -AWAY SUPER AMERICA STORE TOM THUMB HCDC FOR QUA-DE FAMILY (n) ANNEXATION OF 1.3 ACRES TOWNSHIP (HOERNEMANN ESTA LOCATED H VALLEY S PROPERTY) FRANK REESE, ARCHITECT FOR PRAIRIE SENIOR COTTAGES WITH FAVORABLE RECOMMENDATION FROM PLANNING COMMISSION WITH STAFF RECOMMENDATIONS (FIRST READING OF ORDINANCE NO. 97-194 AND SET SECOND READING FOR MAY 13, 1997) CITY COUNCIL MINUTES - APRIL 22, 1997 (o) VARIANCE FOR REDUCTION OF FRONT/FUTURE SIDE YARD SETBACK TO ZERO FEET, LOCATED AT 995 FIFTH AVENUE SE, REQUESTED BY DICK MCCLURE WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION WITH STAFF RECOMMENDATIONS (ADOPT RESOLUTION NO. 10831) (p) CONDITIONAL USE PERMIT TO MOVE 34'X34' HOUSE AND 12'X22' GARAGE ONTO PROPERTY LOCATED AT 495 CALIFORNIA STREET NW REQUESTED BY ARTHUR DODGE WITH FAVORABLE — RECOMMENDATION OF PLANNING COMMISSION (ADOPT RESOLUTION NO. 10832) (q) CONDITIONAL USE PERMIT TO CONSTRUCT ADDITION TO PRESENT BUILDING LOCATED IN C -5 DISTRICT AT 234 FOURTH AVENUE NW REQUESTED BY DON HANTGE, TRI COUNTY WATER, WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION (ADOPT RESOLUTION NO. 10833) (r) AMENDMENT TO ZONING ORDINANCE NO. 464, SECTION 8.05, 8.06 & 9 REGARDING LOT DIMENSIONS IN R -2 DISTRICT FOR TWO FAMILY DWELLING UNITS WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION WITH STAFF RECOMMENDATIONS (FIRST READING OF ORDINANCE NO. 97 -195 AND SET SECOND READING FOR MAY 13, 1997) (s) SIX MONTH EXTENSION OF CONDITIONAL USE PERMIT FOR BETHANY Is BAPTIST CHURCH, LOCATED AT 800 GROVE STREET, REQUESTED BY CROW RIVER SPECIAL EDUCATION COOPERATIVE WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION (t) LOT SPLIT ON PROPERTY LOCATED AT 667 BLUFF STREET REQUESTED BY GEORGE AND SHIRLEY FIELD WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION (u) CONSTRUCTION OF DOG KENNEL IN SECTION 29, HUTCHINSON TOWNSHIP (TWO MILE RADIUS) REQUESTED BY DAVID ALQUIST WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION TO COUNTY (v) APPOINTMENT OF DAVID WETTERLING TO UTILITIES COMMISSION Motion was made by Erickson, seconded by Peterson, to approve consent agenda except for item 4 -(q). Motion unanimously carried. Rodeberg explained the background and reasoning of the staff's recommendation to deny the conditional use permit. It was the consensus of the Council that since MN/DOT has no definite future plans for work on Hwy. 7, the permit should be granted. Motion was made by Erickson, seconded by Mlinar, to approve the conditional use permit for item 4 -(q). Motion unanimously carried. Is 5. PUBLIC HEARING -- 6:00 P.M. CITY COUNCIL MINUTES - APRIL 22, 1997 7 13 (a) LETTING NO. 6, PROJECT NOS. 97-02,97-1197-14,97-15,97-18,97-19,97-21, 97 -22, 97 -23, 97 -24 The Mayor called the hearing to order at 6:00 p.m. and read the notice of hearing. Rodeberg explained the process regarding the hearing and reviewed the project;. It was noted that improvement projects No. 97 -13, 14, 15 and 18 were not assessable. Bill Haas, 415 Main Street S., stated he was opposed to the alley project No. 97 -22 and approximately 50% of the neighbors were not in favor of it. Motion was made by Mlinar, seconded by Erickson, to close the hearing at 6:11 p.m. Motion unanimously carried. Motion was made by Erickson, seconded by Mlinar, to approve the projects as presented at tonight's meeting and to waive readings and adopt Resolutions No. 10834 and No. 10835. Motion unanimously carried. COMMUNICATIONS. REQUESTS AND PETITIONS -- NONE (a) SUBMISSION OF DIRECTORS' FIRST QUARTER PROGRESS REPORTS The City Administrator stated that the Directors will present first quarter progress reports at the next City Council meeting. UNFINISHED BUSINESS (a) CONSIDERATION OF REQUESTS FROM ADC SOLITRA (DEFERRED FROM NOVEMBER 12, 1996) Dick Lennes, HCDC Executive Director, and City Engineer Rodeberg addressed the stone sewer and parking lot issues related to ADC Solitra. It was the HCDC Board of Directors' recommendation that the City approve up to a maximum of $70,000 from tax increment capture on ADC Solitra's expansion for storm sewer and land preparation. Rodeberg presented a plan to replace the retention pond with a parking lot designed to act as a storm sewer catch basin. The estimated 555,000 project cost would be funded from money captured by the tax increment finance district established in that part of the industrial park. Following discussion, motion was made by Mlinar, seconded by Peterson, to approve the estimated $55,000 project. Motion unanimously carried. NEW BUSINESS (a) CONSIDERATION OF CHANGING CITY COUNCIL MEETING DATE FROM JUNE 10, 1997 TO JUNE 9, 1997 Motion was made by Mlinar, seconded by Erickson, to change the City Council meeting date to June 9, 1997. Motion unanimously carried. • I r • 4 CITY COUNCIL MINU - ES - APRIL 22, 1997 (b) REVIEW OF CITY COUNCIL WORKSHOP REGARDING TAX INCREMENT FINANCING Finance Director Merrill and bond consultant Steven Apfelbacher reviewed the City's 11 tax increment finance districts. (c) CONSIDERATION OF LIGHT TRAFFIC ADVISORY BOARD RECOMMENDATIONS FOR PROPOSED 1997 BIKE LANE STRIPING IMPROVEMENTS The Light Traffic Advisory Board proposed bike lane striping improvements along Dale Street from Juul Road to Linden Avenue, on Linden Avenue from Dale Street to Lynn Road, and on Jefferson Street from Century Avenue to Washington Avenue. The plan would include eliminating parking on one side of each of these streets for the creation of a bike lane. It was noted that the affected property owners would be sent letters informing them of the project time frame. Following discussion, motion was made by Mlinar, seconded by Erickson, to approve the bike lane striping improvements. Motion unanimously carried. (d) CONSIDERATION OF SMALL CITIES GRANT FOR ADAMS STREET NEIGHBORHOOD Following discussion, motion was made by Mlinar, seconded by Peterson, to approve Is the Small Cities Grant and to waive reading and adopt Resolution No. 10830. Motion unanimously carried. (e) CONSIDERATION OF AWARDING BID FOR NEW 55 FOOT, HYDRAULICALLY CONTROLLED, AERIAL DEVICE WITH ATTACHMENTS Motion was made by Erickson, seconded by Peterson, to approve purchase and award bid to Dueco, Inc. in the amount of $67, 288.00, less trade -in of city-owned 1978 truck mounted aerial device for $15,000.00, for a net bid of S52, 288.00. Motion unanimously carried. (f) CONSIDERATION OF AWARDING BID FOR NEW 1998 FORD TRUCK CHASSIS Motion was made by Erickson, seconded by Peterson, to approve purchase and award bid to Boyer Ford Truck, Inc. for one new 1998 Model F -700 Ford truck chassis in the amount of $25,400.85. Motion unanimously carried. 9. MISCELLANEOUS (a) COMMUNICATIONS FROM CITY ATTORNEY Anderson commented on the Waage litigation and stated that the City was not obligated for the total amount of the $15,000 settlement, but rather it should be a 50/50 split with the City paying $7,500 to the League of Cities. It was his position that the insurance carrier should cover the attorney fees. Following discussion, motion was made by Mlinar, seconded by Erickson, to approve CITY COUNCIL MINUTES - APRIL 22, 1997 0 the City Attorney's recommendation. Motion unanimously carried. (b) COMMUNICATIONS FROM HUTCHINSON AREA HEALTH CARE FOR MENTAL HEALTH ROOFING PROJECT The Hutchinson Area Health Care Board recommended awarding bid to Granite City Roofing in the amount of $38,400.00 to install a new roof over the inpatient mental health area. Following discussion, motion was made by Mlinar, seconded by Peterson, to approve recommendation and award bid. Motion unanimously carried. (c) COMMUNICATIONS FROM AMERICAN LEGION POST NO. 96 The American Legion requested that the City consider a name change for Third Avenue SE to Legion Lane for the one block in front of the Post No. 96. Following discussion, motion was made by Mlinar, seconded by Peterson, to refer the request to City staff for a recommendation. Motion unanimously carried. (d) COMMUNICATIONS FROM DIRECTOR OF ENGINEERING Rodeberg requested adoption of Resolution No. 10837 for a "no parking" zone on the east side of Echo Drive and north of Fremont Avenue. Motion was made by Peterson, seconded by Mlinar, to waive reading and adopt Resolution No. 10837. Motion unanimously carried. Ap Rodeberg reported that BR -GR's Plus restaurant had been granted permission on a trial basis to allow its customers to park on Main Street at 4:00 a.m. without being ticketed by the Police Department. It was noted that the Main Street Sports Bar employees should park in the parking lot behind their building. (e) COMMUNICATIONS FROM MAYOR MARLIN TORGERSON The Mayor commented that the wastewater treatment plant had received a commendation award for its continued compliance for the past eight years. (f) COMMUNICATIONS FROM JOHN LIETZ REGARDING DONATIONS FOR FLOOD VICTIMS John and Sandy Lietz are actively spearheading a City relief effort to collect cash donations as well as cleaning products and other items for flood victims. He reported on the locations to drop off cash or other necessary items. (g) COMMUNICATIONS FROM CITY ADMINISTRATOR Plotz reported that a composting class will be held on April 24, and no prior registration is required to attend. He also commented on the City's kick -off donation of $5,000 to create a fund through the League of Minnesota Cities to assist flood victims in Moorhead, East Grand Forks and other Minnesota cities along the Red River. 0 CITY COUNCIL MINUTES - APRIL 22, 1997 Motion was made by Mlinar. seconded by Erickson. to approve a $5,000 donation to the League of Minnesota Cities fund to help flood victims. Motion unanimously carried. 10. CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS (a) VERIFIED CLAIMS Motion was made by Erickson. seconded by Peterson, to approve the claims and authorize payment from appropriate funds. Motion unanimously carried. 11. ADJOURNMENT There being no further business, the meeting adjourned at 7:01 p.m. s • 7 REPORT OF BUILDING OR I ZONING PERMITS ISSUED AND c_....— - -. seou sam I LOCAL PUBLIC CONSTRUCTION I CITY OF HUTCHINSON BUILDING / PLANNING / ZONING DEPARTMENT 111 HA.SSAN STREET S.E.. HUPCHINSON. MN 55350 PHONE 612. 234.4216 FAX: 612. 234.4240 a • Month of April 1997 NEW RESIDENTIAL PRIVATELY OWNED PUBLICLY OWNED HOUSEKEEPING tern Number of Valuation of Numberd Valuation Of BUILDINGS NO Bindings Homing oonstruCtiafl Buildings Housing COnsVUCtion Units Cmwt can(, Unit Onto cents I a a Single - famly houses, detached E dw mom. nrmn 101 4 4 567 325 Single- family houses, attached Sovarwf DY PaW n rml wY. lox ne sna a war mews Two-family Wild'n s 103 Three - and fo build' s 104 Fivebnm farnity buidln s 103 TOTAL: Sum of 101 -10.5 109 NEW RESIDENTIAL PRIVATELY OWNED PUBLICLY OWNED NONHOUSEKEEPING nem Nunbadd I Valuanonof Number of Valuation of BUILDINGS No. Build" Roams cunswaion Buntings Roans construction Cwrwt cams Omit cams a c (a Hotels, motels, end lanst cabins trarmant accommadatlanao 1 213 Other non ousekeap" elstla 214 NEW PRIVATELY OWNED PUBLICLY OWNED NONRESIDENTIAL nom Nuttier Veluetlor, of Nun ber Of VsawGon of BUILDINGS No. of construction Bulldirgs oanwctlan Buildings Omitcsms Quitwma e o e Anwsemernf, soaa, and recreational 318 Churches and ct,er religions 319 Induabiel 720 Parlang garages NlAtlpgs 4 open dsdkedl 321 Servke orations and rapar garages 322 Hospitals and IrutlnNmel 723 Olficea, banks, a proleasonal 324 Public works and Inihbas 325 Schods anal other educational 326 Stores and customer... 327 Other nonresldentsl buildings 326 6 115,850 Suuaues other than bul'dmgs 729 ADDITIONS, PRIVATELY OWNED PUBLICLY OWNED ALTERATIONS, nem Number Valuation of Number of Valuation of AND CONVERSIONS No. of oonsttuaion Bwldngs mrstruaion Buildings Omit Cants OnLd Cants (a) (b) (o) fall (a) Reaidentiel - Gasify adddnna of 434 garages and carp" n Ham A]6 14 334 Nonresidential and nornhous keeprg 437 7 Additions of resdemfal garages and carp" 438 (attached and detached) 2 23,73 DEMOLITIONS PRIVATELY OWNED PUBLICLY OWNED AND RAZING Item i Number Number of Number of Number of OF BUILDINGS No of Housing units Buildings Housing units Buldings a c tl e Single -lamely houses driaCwd and detadred) 645 Two -tarvly buildings 646 Three. and four - family buildings 647 Five-or-more family buildings 648 An other buildings and structures 649 RRR -11, RRS -4, RNR -3, SIGNS -5, MHI -2, EXC -1, FENCE -3, DEN0-1 Total Permits - 64 Total Valuation $2,833,756.00 1, HUTCHINSON AREA HEALTH CARE REGULAR BOARD OF DIRECTORS' MEETING -March 18, 199- Hospital Conference Room AFB - 530 PM Present: Tom Daggett. Chairperson: Don Erickson, Secretar}: Rich Myers. Director: Elaine Black. Director: Dr. Mark Matthias. Trustee, Chief of Medical Staff Absent: Jim Mills. Director (excused): Paulette Slanga. Vice Chairperson (excused) Others Present: Philip G. Graves, President: Pat Halverson, Community Care Division Director: Jane Lien, Acute Care Division Director: Robyn Erickson, Care and Support Services Division Director; Ed Tusa, Finance. Information and Quality /Senior Care Divisions Director: Jim Lyons, Hutchinson Medical Center Administrator; Becky Strange. Vice President of Regional Services, Allina: Corrinne Schlueter, Recorder Becky Strange presented the following information about Allina's 1997 Executive Salary Program before the meeting began: Executive Compensation Philosophv • Base salary ranges are set at the median of other large, integrated health care systems, managed care organizations, hospital systems. and medical practice groups. • Total compensation packages are set at or near the median of the market. • Executives are paid for any unique competencies and capabilities they bring to their position and the value they add to Allina. Salary Plan Design • "Market references' are clearly identified for each position. • A limited number of broad salary ranges de- emphasizes hierarchies among executive positions. • The salary ranges allow greater flexibility in re- assigninLy executives as jobs are re- assigned and new opportunities surface. Broad Salary Ranges • Minimum - the lowest salar an incumbent may be paid. • Maximum - the highest salary an incumbent may be paid. • Market Salary Reference i,MSR) - market median plus' minus 5 %. Salary Administration • Salar} ranges and survey data were reviewed and updated Januar} 1. 1997. • Executive salaries are reviewed on an annual basis, taking into account their performance in the prior %ear, as well as their current salary in comparison with the updated MSR. • Adjustments are made during evaluation. Reasons for paving below MSR • Job is smaller. narrower, less complex than survey comparison jobs. • Incumbent has less experience. • Incumbent's capabilities /competencies are somewhat less than what thejob calls for. • New hire with unproven capabilities. ' Reasons for paving above ViSR • Job is bigger, broader. more complicated than survey comparison jobs. • Incumbents performance has consistently exceeded expectations year after year. • Incumbent has unique or distinct competencies /capabilities. • Necessary to recruit a particular candidate. l� Regular Board of Directors' Meeting - March 13, 1997 Page Two 8 The board thanked her for her presentation, and the meeting was called to order at 5:50 p.m. by Chairperson Daggett. Minutes of Past Meetings The minutes of the February 20, 199'. meeting were presented to the group. The board was made aware that the seconds of two motions were in error. The Chairperson was asked to repeat the names of who made the motion and who seconded it while restating the motion for voting by members. Following discussion, a motion was made by Erickson, seconded by Black to accept the amended minutes of the February 20, 1997, meeting. All were in favor. Motion carried. Medical Staff Meeting Minutes and Credentialing Dr. Matthias reported on the activities of the Executive Committee of the Medical Staff. Also presented were credentialing recommendations from the Executive Committee for the following practitioners: ReaDvointments Dr. John Bergseng Surgery Courtesy Dr. Mark Mongomery Otolaryngology Active Dr. Charles Rich Anesthesiology Active Dr. David Carlson Orthopedics Courtesy Dr. Martin Lipschultz Pathology Courtesy Dr. Timothy Gibbs Psychiatry Active Dr. Darel Hulsing Psychiatry Active Dr. Fredrick Gramith Radiology Courtesy Dr. Steven Mulder Family Practice Active Dr. Peter Smyth Internal Medicine Courtesy Dr. Daniel Frenning Internal Medicine Active Dr. Robert Van Tassel Cardiology Courtesy Dr- Noel Collis Internal Medicine Active Dr. Terrence Longe Cardiology Courtesy Dr. Dhanush Prasad Surgery Courtesy Initial .-I DDOintment Dr. Randy Jorgenson, DC Chiropractic Provisional /Allied Health Independent Provisional to Active Dr. Howard Hughes Emergency Provisional to Active Dr. John Mowlem Emergency Provisional to Active Following discussion, a motion was made by Myers, seconded by Erickson, to approve membership and privileges for the practitioners listed above. All were in favor. Motion carried. Old Business A. Memorandum of Understanding and Phvsician Retention Agreement Before discussion began, Matthias declared a conflict of interest and abstained from discussion of the Memorandum of Understanding and Physician Retention Agreement. Graves then reported Regular Board of Directors Meeting - March 18. 1997 Page Three (A.) that the Memorandum of Understanding and Physician Retention Agreement. recently drafted by Barrv Anderson and attomevs for the Hutchinson Medical Center, were finalized. The Memorandum of Understanding details the commitment of HMC and HAHC for recruitment and retention of physicians. The Physician Retention Agreement will be signed by the affected practitioners of the medical center before salary dollars are paid to the Hb1C. Following discussion, a motion was made by Myers, seconded by Erickson, to accept the agreement as presented. Four were in favor and one abstained. Motion carried. B. Annual Safetv Report Halverson presented the report on 1996 organizational safety activities. Each section of the report was briefly discussed with the board. • The revised and updated safety inservice video was completed and distributed to all service areas. The completion rate for the organization for 1995 was 94 %. This figure exceeds the JCAHO requirement. • A new process for investigating accidents on HAHC property was developed and implemented in 1996. • Through the incident reporting system. no trends were noted except for falls reported at BivfNH. As in the past, BMNH has a procedure in place to deal with repeated falls by residents. • A need was identified to educate staff on the proper documentation and completion of PHICO incident reports. It is felt that at times there is not enough documentation being done. A plan will be developed to educate the staff. • A simulated disaster drill was held at BMNH in November. The drill involved a simulated telephone system failure following a major snowstorm. The staff responded in an appropriate manner to the situation. Following discussion a motion was made by Black. seconded by Myers. to approve the 1996 annual safety activity report as presented. All were in favor. Motion carried. C. Long -Term Care Report The report was deferred until the April meeting. D. Organization Performance Evaluation Process Robyn Erickson presented information on the organizational performance evaluation process for 1996. • Percentages of turnover for the year: 10% professional, 15 technical. 29% clinical, with an average of 17 0 /5 in those areas. • Percentages of staff under disciplinary action 24 %. and these were professional 5 %, technical 4 %, other clinical 7 %, and other 8 %. • Percentages of employees who met mandatory requirements for education in infection control, safety, etc.: professional 94 %, technical 91 %. other clinical 98 %, other 99 %. • Percentages of performance appraisals completed: professional 96 %, technical 96 %, other clinical 99 %, other 98 %. • Percentages of performance appraisals completed: in 1994, 93 %; in 1995, 99 %; and in 1996.91%. Question was asked about whether contract employees receive safety training. Erickson replied they do receive a condensed form of training at the time of hire. lJ Regular Board of Directors' Meeting -March 18. 1997 Page Four Ar D.) Following discussion, a motion was made by Erickson seconded by Black to accept the report as presented. All were in favor. Motion carried. E. Restraints Policy. Graves reported the Joint Commission discovered a discrepancy in the wording between the organizational Restraints Policy and Medical Staff Rules and Regulations. The difference was with the time required for the renewal of orders to apply restraints. The Rules and Regulations of the Medical Staff were changed by the Medical Staff in December to read the same as the Restraints Policy. Changes in the Medical Staff Bvlaws, Rules and Regulations become final once approved by the Board of Directors. Following discussion, motion was made by Erickson and seconded by Myers to adopt the changes in wording of the restraints policy in the Rules and Regulations of the Medical Staff. All were in favor. Motion carried. Organizational Reports A. President Graves extended congratulations to Ed Tusa on completion of his Nursing Home Administrators licensure exam. Graves also gave an update on the political activity on the Medicare geographic reclassification issue. B. Acute Care Nothing further was reported. C. Care and Program Su000rt Nothing further was reported. D. Communitv Care Nothing further was reported. Senior Care /FIO Nothing further was reported. Abbott Northwestern Report No report was presented. Allina Report Nothing additional to report. Accounts Pavable The accounts payable listing for February was presented. Following discussion, a motion was made by Myers, seconded by Erickson to approve the attached listing of accounts payable and cash disbursements in the amount of 51,178,826.92. All were in favor. Motion carried. Statistical Report The statistical report was presented. Hospital admissions for the month of February were 193 compared to a budget of 200. Average daily census for February was 23? ,and average length of stay was 3.4 days. Percentage of occupancy was 38.7 %. Nursing home statistics showed occupancy of 98.34 %, and the average case mix of 2.41. Finance The organization's revenue over expense for the month of February, 1997, was 542,270, compared to a budget of $38,032. Auxiliary Meeting Minutes The hospital auxiliary meeting minutes were presented. No unusual comments were made. I, l� Regular Board of Directors Meeting - %larch 13. 1997 Page Five Adiournment Myers made a motion to adjourn the meeting, seconded by Black. There bein_ no further business, the meeting was adjourned at 6:3 5 PM. Respectfully submitted. Corrinne Schlueter Don Erickson Recorder Secretary cs s • l PA HUTCHINSON TREE BOARD MEETING MINUTES MARCH 20, 1997 Called to order by Dave Larson. In attendance: Mark Schnobrich, Dave Larson, Ray Wurscher, Laura Poser, and Brian Brosz. Discussed: Blue Bird House Day a Gopher Campfire, April 12, 1997 - Virgil Voigt has confirmed our booth and his cooperation with Mark Schnobrich. We will have our 1st Annual Adopt -A -Tree sign -up, held as our Arbor Day participation. We will contribute the Tree City USA flag, and Dave Larson will contribute the dividers for the booth. Mark will provide the article for placement in the Leader prior to the 12th, hoping for the 8th's publication. The idea was presented by Mark on having a drawing held for all participants, prizes donated and solicited by the Tree Board. Could hold this drawing in the Fall. Another possibility, presented by Mark, for inducement would be free mulch for the 'adopted' tree and for their own boulevard trees. We can provide the How -to directions at the sign -up, and send postcards throughout the summer for updating of the watering situation. ,lark informed the Board of the passing of a Charter Member, Alice Jensen_ We would like to dedicate a tree in her memory. Discussed were the possibilities of designating it with: Brass plaque embedded in cement, a carved wood sign for placement in the branches, or the purchase of 'trap tags'. MILLER WOODS CONSORTIUM - People have been assigned from the surrounding neighborhood. Brian Brosz accepted Mark Schnobrich request to be the Board's representative. The members as we know it are, John Miller, Teri Anthony, Bob Carney, Chuck Carlson, Jarvis Watnemo, Marlin Torq"mson, and a member to vet be named. The {r Tree Board's point of view to to have the Park established to Oak Savanna - our goal is to bring it to this stage. A buffer (unkempt) outside of the trail is preferred, with development of it maybe 5 -10 years in the future. The uniqueness of the Park is what we have to educated the neighborhood on. we would inform them on the fact that control burns would take place to achieve our goal. The next meeting is scheduled for April 3, 1997 at 5:00 p.m. at Marquette Bank. These minutes are considered to be the correct interpretation of all items discussed. Errors or omissions must be noted at the next scheduled meeting, or the minutes will be accepted as written. Laura Poser Secretary Hutchinson Public Library Board Meeting Monday, April 28, 1997 Members Present: Mary Henke, Paul Wright, Kay Peterson, Lois Carlson, Sue Munz,Larry Ladd, PLS Board Member Members Absent: Joe Schulte, Connie Lambert, Richard Peterson The meeting was called to order by Paul Wright,Chair. The minutes from the March 31 meeting were read and accepted. Old Business: Internet access to the public - Mary reported that the station was busy during the first week and perhaps users would appreciate more time than the half hour stated in the policy by PLS. A suggestion was made for a follow -up article in the newspaper about the important part PLS played in the Internet installation process. Mary will also inquire about Kids' guidelines for using the Internet. National Library Week activities: Leader article shown about Internet addition - News spots were on TV - Print -out went home with students at Park Elementary - Demonstrations were done several evenings of that week - There were book R giveaways New Business: Consideration and discussion of a library user's letter of concern regarding free materials placed in the library. A letter in response will be sent enclosing the library policy on Exhibits, Displays ....... Free Materials (MMP, Joyce,Kay) Budget for 1998 - Mary reported an outline will be ready for May 8. Discussion followed on what a proposed 4% increase in funding would entail as recommended by PLS board. PLS Reports: L. Ladd reported on the recent improvements in the evaluation process of employees and the voluntary accreditation program also for the employees. The Personnel Policies were approved by the PLS Board on 4- 17 -97. The Minnesota Libraries News and an automation newsletter were distributed to local board members. The next meeting will be on Monday, June 23, 1997 at 4:30 P.M. The meeting was adjourned. Joyce Beytien, Secretary MINUTES Parks, Recreation & Community Education Advisory Board April 3, 1997 Members present were Linda Martin, Mike Cannon, Loretta Pishney, John Mlinar, Peggy Westlund, Rev. Brian Brosz and J.P. Auer. Also present were Dolf Moon and Karen McKay. The meeting was called to order at 5:20 p.m. The minutes dated March 6, 1997 were approved by a motion made by Loretta Pishney and seconded by John Mlinar. The board agreed unanimously. [Im awma .� Baseball Program/Softball Program - 300 registrations have been taken and a check has been issued to reimburse Junior League Baseball. Softball people were interested last fall in a registration process similar to this. Next year the baseball/softball registration will take place in one location. The city baseball league registration continues. Program Committee Recommendation - The Programming Committee's recommendation is that the city's responsibility to the community is to provide figure skating lessons to pre - school age children up to and including freestyle level three. The committee felt that the Figure Skating Association should be responsible for freestyle level four and above and the Junior and Senior Precision Teams. A meeting will Is be held the end of April and the division of responsibilities for each group will begin. A separation is needed. The groups will review the booklet assembled at the previous meetings two years ago. Civic Arena - As part of the 1998 planning process, an operations manual will be compiled including heating, lighting and dehumidification specifications. Pool - The committee is working with school representatives and board members to adopt policies. The number one priority of the Middle School pool is education with community use second and competition third and this will need to be followed through with schedules. They are considering a cross membership for the Middle School and outdoor pool at the Rec Center, there will be one set of guidelines for staff to follow. It's a time consuming process, but they want to get it right. Community Survey - Marshall, Chanhassan, Brainerd and New Ulm were surveyed. New Ulm has yet to reply. The results will be summarized and ready for the May meeting. In several cases, associations provide youth sports and managers schedule the facilities. NEW BUSINESS PRCE Registration - Board members are invited to help with the mass registration process for summer programs Tuesday, May 6th 64 pm at the Recreation Center. Is Parks & Open Space Plan - The city is updating it's land use plan. Expanding Northwoods Park is expected to go to the Planning Commission. Off street parking should be planned for. The Park land Dedication Policy needs to be reviewed, in particular commercial property, there haven't been any changes to it since 1993. 1 _ A. r5) Minutes Parks, Recreation & Community Education Advisory Board April 3, 1997 0 Bandstand Project - The new roof turned out nice, after taking down the old roof, they found it wasn't attached to the pillars. Donations have totaled $34,000, Les Kouba did a print for a rate, chances will sell for $10 each and an additional $4,000 will be raised. Summer Projects - Luce Line Trail - The trail will be paved (Delaware Street to Arch Street) this year. The cost will be $144,000 and work will begin mid May. Delaware Street to Cosmos will be gravel, there is a break in the trail from Arch Street to Kimberly Park. The decisions for the railroad are made in Michigan. 3M Bridge -A pedestrian bridge is planned across the river replacing the trestle bridge, it will separate and swing away in case of high water. The bridge will be 14 feet wide and will double as a fishing pier. This area will be considered recreational space, not a park. Northwoods Playground - A $11,000- 12,000 play structure will be installed closer to the shelter in the park. The field relocation project will be completed this year. V.F.W. Playground - The current play equipment will be pulled out and an $8,000 structure will replace the old pieces. The basketball hoop will be moved near the shelter. The concrete under the shelter needs to be replaced due to cracking. 0 V.M.F. Shelter - The Legion and Baseball Association donated $4,500 for the addition of a sun shelter in the park. The Board will tour the progress of the projects for July meeting. • 1 1313 1' J.P. Auer met with Mike Heinen with discussion including the ice show and how the city calculates monies. There will be a meeting at the end of the month to schedule a partnership that needs to work both ways. ADJOURNMENT The meeting was adjourned at 6:30 p.m. by a motion made by Mike Cannon and seconded by J.P. Auer. The Board unanimously agreed. klm • HUTCHINSON LIGHT TRAFFIC ADVISORY BOARD MINUTES Monday, April 14, 1997 5:30 p.m. Hutchinson City Center Members present: Rick Larson. Leslie Smith. Lucille Smith. Archie Woodworth. Richard Parton, Dave Radloff. Dave Conrad, Brian Bonte Staff present: Dolf Moon. John Rodeberg, Brenda Ewing and Bonnie Baumetz Chairman Larson opened the meeting at 5:30 p.m. RESULTS AND FOLLOW -UP OF THE FUNDING REQUESTS FOR THE BIKEBLADE BONANZA • Dave Radloff reported HTI donated $250.00 toward the Bonanza. Dolf Moon reported the Medical Center donated $2500.00 and the Hospital also contributed $2500.00. Les Smith stated the Safety Council would possibly donate $250.00. Dave Conrad reported the Student Council will contribute $250.00. Dolf stated 3M will donate products this year, for cash donations we must get in their schedule. It was the consensus of the board that thank you notes are to be sent including information on where the donation is to be mailed. Dave Mueller and Dolf Moon will try to get media coverage to promote the Bike, and Blade Bonanza. Dave Mueller stated there will be a volunteer meeting on April 24th at 7:00 p.m. at the Police Dept. He stated there will he 6 to 7 bikes to give away. Cashwise. More 4. Subway. SuperAmerica and First Federal will donate food. He is at the schools promoting the bonanza this week. IL UPDATE OF LUCE LINE BIDS BY DOLF MOON Dolf stated the bid went to Mueller and Sons. He explained the construction of the trail and the makeup of the trail in the event of flooding. Dolf stated the Luce Line trail from Hutchinson to Cedar Mills will be red rock this summer. Dolf commented on the Community Service Officer who will work the trail part time. One position is funded and there may be money for one more position. IH. ELECT PUBLICITY CHAIRPERSON FROM THE BOARD There was discussion on the description of the publicity chairman job. Dolf stated the staff would handle publicity for the Light Traffic Advisory Board. Dolf, Dave Mueller and John Rodeberg will generate the publicity. Rick Larson will ask Richard Crawford from the Hutchinson Leader if he Is HUTCHMSON LIGHT TRAFFIC ADVISORY BOARD MINUTES - APRIL I4. 1997 would be interested in attending the meetings. Rick will report in May. IV. DETERMINE DATE AND TIME FOR PRESENTATION BY MR- TOM GOTTFRIED, MN TRANSIT PROJECT MANAGER Brenda Ewing commented on the transit presentation Mr. Gottfried will be giving titled "What is Transit ?" She will contact Mr. Gottfried to get a commitment for the May or June meeting. Discussion followed on the possibility of creating a Transit sub - committee consisting of two members from the Light Traffic Advisory Board, staff and transit users. V. UPDATE ON STRIPING PROJECTS BY JOHN RODEBERG John explained the request to stripe three streets as follows: Dale Street from Juul Road to Linden Avenue; Linden Avenue from Dale Street to Lvnn Road and Jefferson Street from Century Avenue to Washington Avenue. John commented on the concept proposed to cross Dale Street at the Avevron Home to connect to Craig Avenue and across Sunset Street to the Recreation Center. He stated this would be a logical and safe means of connecting from school property to the recreation center. There was an informational meeting with residents on Craig Avenue who voiced their concerns and objections to the proposal. Discussion followed on the proposed striping on Dale Street, Linden Avenue and Jefferson Street. The consensus of the board is to move to recommend support for the striping to City Council. Brim Bonte made a motion to support the striping on Dale Street, Linden Avenue and Jefferson Street, seconded by Dave Conrad the motion carried unanimously. Rick Larson will be present at the City Council meeting. The board will make a recommendation for the crossing at Dale Street to Craig Avenue at the next meeting. VI. CONTINUE BRAINSTORMING TOP PRIORITIES FROM THE "HUTCHINSON PLAN" After discussion of the top priority list. it was the consensus of the board to add a ninth priority to enforce pedestrian safety in the cross walks. In May the board will decide on the top three priorities from the list of nine. VH. OTHER ITEMS Rick reminded the board of the upcoming B -Bop Day which will be held on May 21. 1997. He also stated the Annual Walking Club event will be held on May 17. 1997. with an anticipated 60 -70 walkers. VIII. NEXT MEETING The next meeting will be held on Monday, May 12. 1997. at - 5 :30 p.m. in the Main Conference Room at the City Center. Items on the agenda will include: I ) Determine top three priorities for the Board to work on this year: 2) Update on the Bike /Blade Bonanza held Mav 3rd: 3) Update on the HUTCHINSON LIGHT TRAFFIC. .DVISORY BOARD MINUTES - APRIL I1. 1997 striping recommendation to the City Council: 4) Recommendation for crossing of Dale Street to Craig Avenue: 5) Report by Rick Larson on conversation with Richard Crawford of the newspaper: 6) Update on the presentation by Tom Gottfried and 7) Discussion of B -Bop Day participation on May Z 1 st. DL ADJOURNMENT The meeting adjoumea at 7:00 p.m. t • LIGHT TRAFFIC PRIORITY LIST April 14, 1997 1 2. 3. 4. S. 6. 7. 8. 9. Promote safety of walkers on South Grade Rd. past the Middle School by widening the shoulders. Promote the use of trails through school property. Focus on Transit issues. Promotion of transit efficiency ( educate users of bus system regarding guidelines). Focus on obligations or "Rules of the Road" for in -line skaters. (Develop a municipal standard for in -line skaters.) Provide education on bike traffic in the downtown area of the city. Target different age groups for education of safe biking and blading. (ie. Middle school, elementary, families, high school) Connection of Luce Line trail. Enforcement of pedestrian safety in cross walks. i Ii J.TTF PRIORITY'.WPD May 1. 1997 RE: Bike Safety Improvements (1997 Bike Lane Striping Improvements) Dear Resident As part of the City of Hutchinson's ongoing effort to provide safe transportation routes for bikers and in -line skater's, the City is proposing to create additional bike lanes on several city streets in 1997. The striping of these areas will be the same as located currently on Roberts Road between Dale Street and School Road. These projects are part of the Hutchinson Light Traffic Project implementation that has received National Safety Awards and international recognition, and has had an extensive review by the Minnesota Department of Transportation and the Federal Highway Administration. Our efforts in 1997 focus on providing safe linkages between the schools and the City Recreation Center/Civic Arena site. and providing a safe route on the east side of the Cit near the Downtown area. Since these improvements require the removal of parking on one side of each route, the City Council has requested that residents be given notice of the proposed improvements. The routes and proposed parking limitations are as follows: Dale Street (Juul Road to Linden Avenue) Is � "No Parking" zone proposed for east side of Dale Street Linden Avenue (Dale Street to Lynn Road) "No Parking" zone proposed for south side of Linden Avenue This allows direct access to Linden Park without entering between cars. Jefferson Street (Century Avenue to Washington Avenue N) "No Parking" zone proposed for east side of Jefferson Street The east side has more apartments and businesses that by code need to provide on -site parking. The east side also has extensive park frontage that doesn't creed adjacent parking. This work will not be completed before June 1. 1997 to give residents time to bring comments and concerns to our attention. Please contact Planning Coordinator Bonnie Baumetz at 234 -4203 for more information. If you prefer to comment by letter. please send them to Bonnie at the Hutchinson City Center. Thank you for your consideration in improving the safety of bikers and in -line skaters in the City of Hutchinson. .along with other traii improvements. bike /pedestrian/in -line skating safety training by the Police Bike unit in the schools, and the annual Bike and Blade Bonanza. we will continue our efforts to make Hutchinson a safer and more "Pedestrian Friendly' community to live in. Hutchinson Light Traffic Advisory Board Hutchinson Police/Emergencv Services Hutchinson Engineering/Pttbfic lVorks Group Hutchinson Parks and Reerearion%Community Education uG:7i 4a SMTEV U' Is PUBLICATION NO. It ORDINANCE NO. 97 -194 AN ORDINANCE EXTENDING THE CORPORATE LIMITS OF THE CITY OF HUTCHINSON TO INCLUDE CERTAIN LAND OWNED BY PRAIRIE SENIOR COTTAGES TO AND ABUTTING THE CITY OF HUTCHINSON PURSUANT TO MINNESOTA STATUTES 414.033, SUBDIVISION 2 (3) WHEREAS, Michael Demmer, Prairie Senior Cottages, has filled a petition dated March 13, 1997, requesting that certain land, as legally described below: That part of Tract C of REGISTERED LAND SURVEY NO. 28, McLeod County, Minnesota, described as follows: Beginning at the northwest corner of said Tract C; thence East, assumed bearing, along the north Line of said Tract C to the northwest comer of Tract A of said REGISTERED LAND SURVEY NO. 28; thence South, along the west line of said Tract A 50.00 feet to the southwest comer of said Tract A; thence East, along the south line of said Tract A 60.00 feet to the northwest comer of Tract B of said REGISTERED LAND SURVEY NO.28; thence South, along the west line of said TRACT B and its southerly prolongation 200.00 feet; thence West, parallel with the north line of said Tract C to the west line of said Tract C; thence North 0 degrees 15 minutes 55 seconds West, along said west line to the point of beginning. be annexed to the City of Hutchinson, and WHEREAS, Michael Demmer, Prairie Senior Cottages, represents that he is the sole owner of the property, that the property is unincorporated, abuts the limits of the City of Hutchinson, is not included within any other municipality, is not included in any area that has already been designated for orderly annexation pursuant to Minnesota Statutes 414.0325, and is approximately 1.30 acres in size. NOW, THEREFORE, the City Council of Hutchinson, Minnesota does hereby ordain: SECTION 1. The City Council hereby determines and finds that the property abuts the municipality, that the area to be annexed is 1.30 acres or less, that the property is not included in any area that has already been designated for orderly annexation pursuant to Minnesota Statutes 414.0325, that the municipality has received a properly prepared Petition for Annexation from all of the owners of the property, and that the Petition complies with all of the provisions of Minnesota Statutes 414.033. SECTION 2. The property is urban in nature or about to become so SECTION 3. The corporate limits of the City of Hutchinson are hereby extended to include the Property and the same is hereby annexed to and included within the City of Hutchinson as if the property had originally been part thereof. SECTION 4. The City Administrator is directed to file certified copies of this ordinance with the Minnesota Municipal Board, Hassan Valley Township, the McLeod County Auditor, and the Minnesota Secretary of State. SECTION 5. This ordinance takes effect upon its passage and publication and the filing of the certified copies as directed in Section 4 and approval of the Ordinance by the Minnesota Municipal Board. Adopted this 13th day of May, 1997, S ATTEST: iX Gary D. Plotz City Administrator Marlin Torgerson Mayor RESOLUTION NO. 10841 RESOLUTION APPROVING PLANS AND SPECIFICATIONS AND ORDERING ADVERTISEMENT FOR BIDS LETTING NO. 8 PROJECT NO. 97 -17 WHEREAS, the Director of Engineering has prepared plans and specifications for the construction of the Crow River Pedestrian Bridge in the loan head dam area. 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 Director of Engineering shall prepare and cause to be inserted in the official newspaper, 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 publicly opened at 10:15 am on Thursday, May 29th, 1997, in the Council Chambers of the Hutchinson City Center by the City Administrator and/or Director of Engineering, will then be tabulated, and will be considered by the Council on June 10th, 1997, 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 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 13th day of May, 1997. Mayor City Administrator E 4-b(3) RESOLUTION NO. 10842 RESOLUTION APPROVING PLANS AND SPECIFICATIONS AND ORDERING ADVERTISEMENT FOR BIDS LETTING NO. 9 PROJECT NO. 97 -20 WHEREAS, the Director of Engineering has prepared plans and specifications for Main Street Traffic Signal Modification at the intersections of Main Street and 2nd Ave S, Main Street and Washington Ave., and Main Street and 1st Ave N. 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 Director of Engineering shall prepare and cause to be inserted in the official newspaper, 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 publicly opened at 10:00 am on Thursday, May 29th, 1997, in the Council Chambers of the Hutchinson City Center by the City Administrator and/or Director of Engineering, will then be tabulated, and will be considered by the Council on June 10th, 1997, 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 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 13th day of May, 1997. Mayor City Administrator Minnesota Department of Public Safety srq LIQUOR CONTROL DIVISION ' 444 Cedar St. /Suite 100L ' St. Paul, MN 55101 -2156 (612)296 -6439 TDD (612)282 -6555 APPLICATION AND PERMIT FOR A I TO 4 DAY TEMPORARY ON -SALE LIQUOR LICENSE TYPE OR PRINT INFORMATION NAME OF ORGANIZATION DATE GANIZED TAX EXEMPT NUMBER 7 STREET ADDRESS - 1 I 7 E PD. Box 505 CITY ST ZIP CODE n�1N NAME OF ERSON MAK !NG APPLICATION t BUSINESS PHONE 3ka I HOME PHONE -7038 DATES LIQUOR WILL BE S D (1 to 4 days) TYPE OF ORGANIZATION LLB 7 CHARITABLE = RELIGIOUS ❑ OTHER NONPROFIT ORG ZAT ONO CFR'S NAME v ADDRESS NW IV OR NIZATION OF CER'S NAME n 5 Y ✓ ADDRESS Ego 11. n ' , on OR ANIZA ION OFFI ER 'S NAME ' ADDRESS o N Local n where tense W111 be usedJ If an outdoor area describe Will the applicant contract for intoxicating liquor services? If so, give the name and address of the Liquor license providing the service. Will the applicant cam liquor liability ins ance ? If so, the carriei s ❑ and amount of coverage. (NOTE: Insurance is not mandatory) APPROVAL APPLICATION MUST BE APPROVED BY CTCY OR COUNTY BEFORE SUBMITTING TO LIQUOR CONTROL CITY /COUNTY City of Hutchinson DATE APPROVED CITY FEE AMOUNT $50.00 LICENSE DATES DATE FEE PAID April 28, 1997 X IGNATURE CITY CLERK OR COUNTY OFFICIAL APPROVED LIQUOR CONTROL DIRECTOR NOTE: Do not separate these two parts, send both parts to the address above and the original signed by this division will be returned as the license. Submit to the Citv or Countv at least 30 days before the event. PS-09079(8l95) 4 _ — Hutchinson Jaycee Water Carnival P.O. Box 624 Hutchinson, Minnesota 55350 APR 2 81991 April 26, 1997 Gary Plotz, City Administrator -6ity of Hutchinson 111 Hassan Street Hutchinson, MN 55350 ^ )F HUTCH . ON Dear Gary, The 55th Annual Hutchinson Jaycee Water Carnival, which will be held June 9 - 15th, 1997, is fast approaching with the time to prepare for our annual community celebration. In this regard, the Jaycees would like to kindly request that permits be Issued for the 1997 Water Carnival as follows: 1.) Issue permit for the Carnival Midway Show, June 11th - 15th, at West River Park. The Park and Recreation Dept. has been asked to approve this location again for this year. An alternative site can be set for the Jaycee Park parking lot, as has been done previously in wet seasons, or another site agreeable with the Park & Rec. Dept. Is 2.) Close Third Avenue NW for 1 O and 1 Mile Family Fun Run, Roll or Ride events, from Main Street to Glen Street on June 14th, from 7:00 a.m. to 10:00 a.m., for safety to the particlpants at the beginning and end of the races. 3.) Close streets and Issue a parade permit for the Klddle Day Parade on Saturday June 14th, from 11:00 a.m. to 1:30 p.m. The same route will be used as has been done In the past, starting at the south side of Park Towers and continuing around South Park in a clockwise direction on Glen Street, Fourth Avenue SW, and Grove Street. 4.) Close streets and issue a parade permit for the Grande Day Parade on Sunday, June 15th, from 11:00 a.m. to 4:00 p.m. This year the parade route is changing slightly due to street Improvement projects. This years proposed parade route starts with the staging area being moved to Larson Street all the way down Roberts Road, Including the side streets of Graham and Hidden Circle Drive, to Dale Street. Parade is to start at Roberts Road and Dale Street Intersection and head north on Dale Street until turning east on Second Avenue and continuing until turning south onto Franklin Street, and ending on Linden Avenue. 5.) Issue a permit to operate a concession stand during the Sand Volleyball Tournament on Saturday, June 14th, at West River Park and Les Kouba Park, and during the Grande Day Parade, Water Ski Show, and Mud Volleyball Tournament on Sunday, June 15th, at South Park, West River Park, and Les Kouba Park. 6.) Issue a permit for the Water Carnival "Outdoor Dance" on Saturday, June 17th, from 4:00 p.m. to 8:00 p.m. at Flyers I Hi -Tops, Hutch Bowl parking lot. The dance area will be fenced off to enable Flyers I HI -Tops employees to monitor gate entry to dance area. The Hutchlnson Police Dept. has been contacted about this event. Hutchinson Jaycee Water Carnival P.O. Box 624 Hutchinson, Minnesota 55350 7.) Issue a permit for the Water Carnival Dance on Saturday, June 14th, from 8:00 p.m. to 1:00 a.m. at the Rec. Center. Permission has been granted by Mary Haugen of the Park and Rec. Dept. for use. 8.) Issue a permit for the Fireworks Display on Sunday, June 18th, at approximately 10:00 p.m. , at the AFS International Friendship Grove Park. The Fire Chief, Brad Emans has been contacted concerning the necessary permits regarding the display of fireworks. The Jaycees have arranged to have the Flre Dept. along with an ambulance crew stand by If any assistance is needed. 9.) Issue a Non - intoxicating Liquor License for liquor sales on the following dates: A.) Thursday evening, June 12th, at West River Park J Les Kouba Paint during the Water Parade. B.) Saturday afternoon, June 14th, at West River Park / Les Kouba Point. C.) Saturday evening, June 14th, at the Rec. Center D.) Sunday afternoon, June 15th, at West River Park / Les Kouba Point. The Jaycees would like to be able to sell set -ups during the Water Carnival Dance at the Rec. Center. 10.) In previous years the City of Hutchinson and the Parks and Recreation Dept. have taken care of the cost and requlsitton of portable toilets needed for the weekend. Last year we used our donation from the city to pay for the portable totlets and we ordered them directly. We will plan to follow this same plan again this year. • i The Jaycees, which Is a non - profit organization, would greatly appreciate the waiver of any fees or rentals during the duration of the Water Carnival to help defray expenses. We appreciate all the help and assistance we receive from the City of Hutchinson and all It's staff and employee's, for It the city as a whole that is the real backbone of support for this community celebration. Please Inform me when the Water Carnival items will be on the City Council Agenda. I will plan to attend along with the Vice Commodore, Mike McGraw if you should have any questions, concerns, or need additional information, please feel free to contact me anytime. S Robert J. Hantge, Commodore Hutchinson Jaycee Water Carnival 400 South Glen Street Hutchinson, MN 55350 (320) 587 -2128 cc: Mayor Marlln Torgerson Hutchinson City Council Hutchinson Jaycee Water Carnivai P.O. Box 624 Hutchinson, Minnesota 55350 May 12, 1997 Marilyn Swanson Hutchinson City Council Hutchinson City Center Dear Marilyn, Because of the recent construction at Park Elementary, the Jaycee Water Carnival Kiddie Day Coronation and Parade are in need of a new location. We are asking the City of Hutchinson to consider closing Robert's Road at approximately 1:00 P.M. on June 14th from the St. Anastasia Catholic Church Parking Lot (set up area) to the Hutchinson High School Auditorium (coronation location). Thank Rob rt Hantge, Commodore Hutchinson Jaycee Water Carnival APPLICATION FOR PARADE PERMIT It 1. FOR OFFICE USE ONLY Date Received: >— 1- 17'7 Approved: Name of Organization 2. Address of Organization - ? ? iE� Phone 3. Authorized Officer's Name 4. Officer's Address ;,, - ✓ Phone s a -v� i 5. Parade Chairman /�• (� ,,[ -' --6. Parade Chairman's Address Phone = X yJs 7 / 7. Date of Parade S- Z v -y j Assembly Time 8. Location and Description of Assembly Area ,e.v 4 ;; a,�T Tim ! Lr T 9. Starting Time of Parade r 3 C Estimated Time of Termination 145 1% 10. Starting Point of Parade 11. Route of Parade Travel ,�,✓� r„ ,l)uir e7 y,�,. sT TG 1 9 12. Termination Point of Parade 13. Approximate Number of Units, Animals and Vehicles which will constitute Parade with Type and Description of Animals and Vehicles :1 S'- °F eArs 14. Maximum Interval of Space to be Maintained Between Units Vary 15. Maximum Length of Parade 16. Minimum and Maximum Speed of Parade MPH 17. Portion of Street Width ---------------------------------------------- Approved this day of 19_ upon compliance with the following terms and conditions • Chief of Police Lf _ F Re: Railroad Issues - Trail and Otherwise Our File No. 3188 -88079 Dear Gary. I've noted that we have had not much success in negotiating with Dakota Rail, Inc. on some of the trail issues and also with respect to other matters. I think part of the problem here is that this line does not get much attention from the corporate folk in Bad Axe, Michigan. I mentioned to John Rodeberg that perhaps the best way to proceed would be to invest some money in travel to Michigan so that we can meet with the principals directly rather than trading messages and unhelpful correspondence. Unfortunately, Bad Axe, Michigan is not located anywhere near civilization at least as we would define the term. It is approximately an hour and a half northwest of Saginaw, Michigan and my travel agent tells me that on the basis of a non - Saturday lay over, the cost to travel is approximately $800. I would assume incidental expenses are another $100 or so. I would be willing to agree that my time spent on this little adventure is a retainer matter so that there would be no legal fees attributable to the City of Hutchinson. Originally, my thought was that John Rodeberg and I would travel together but I also recognize that June is the middle of his construction season and perhaps that doesn't make a great deal of sense particularly in light of the cost. Accordingly, my proposal would be to travel to Bad Axe, Michigan although I would expect that John would be available by telephone on whatever date at whatever time we ultimately arrange to have this meeting so that if questions come up from an engineering perspective they can be addressed Is without John having to be present I CERTIFIED AS A CIVIL TRIAL SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION "CERTIFIED AS A REAL PROPERTY LAW SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION ARNOLD. ANDERSON & DOVE PROFESSIONAL '_IMITED LIABILITY PARTNERSHIP .. • ATTORNEYS AT LAW , nUTGHi. ON 101 PARK PLACE DAVID B. ARNOLD' HUTCHINSON. MINNESOTA 5 5 3 50 -2 56 3 OF COUNSEL STEVEN A. ANDERSON ARTHUR L. DOTEN S. BARRY ANDERSON (320) 567 -7575 TERRI A. BLOMFELT _AURA K. FRETLAND FAX (320 - 4 096 PAUL D. DOVE ** 5891 CEDAR LAKE ROAD JANE VAN VALKENBURG RESIDENT ATTORNEY MINNEAPOLIS, MINNESOTA SE416 RICHARD G. McGEE G. BARRY ANDERSON (612) 545 -9000 CATHRYN D. REHER FAX (612) 545 -1793 WALTER P. MICHELS, III FAX (6121 542 -9210 APw.'r .Iry TexAS Arvo IaEw roan SOI SOUTH FOURTH STREET May 8, 1997 PRINCETON, MINNESOTA 55371 (612) 3832214 FAX (612) 389 -5506 Mr. Gary Plotz Hutchinson City Center 111 Hassan Street SE Hutchinson, Mn. 55350 Re: Railroad Issues - Trail and Otherwise Our File No. 3188 -88079 Dear Gary. I've noted that we have had not much success in negotiating with Dakota Rail, Inc. on some of the trail issues and also with respect to other matters. I think part of the problem here is that this line does not get much attention from the corporate folk in Bad Axe, Michigan. I mentioned to John Rodeberg that perhaps the best way to proceed would be to invest some money in travel to Michigan so that we can meet with the principals directly rather than trading messages and unhelpful correspondence. Unfortunately, Bad Axe, Michigan is not located anywhere near civilization at least as we would define the term. It is approximately an hour and a half northwest of Saginaw, Michigan and my travel agent tells me that on the basis of a non - Saturday lay over, the cost to travel is approximately $800. I would assume incidental expenses are another $100 or so. I would be willing to agree that my time spent on this little adventure is a retainer matter so that there would be no legal fees attributable to the City of Hutchinson. Originally, my thought was that John Rodeberg and I would travel together but I also recognize that June is the middle of his construction season and perhaps that doesn't make a great deal of sense particularly in light of the cost. Accordingly, my proposal would be to travel to Bad Axe, Michigan although I would expect that John would be available by telephone on whatever date at whatever time we ultimately arrange to have this meeting so that if questions come up from an engineering perspective they can be addressed Is without John having to be present I CERTIFIED AS A CIVIL TRIAL SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION "CERTIFIED AS A REAL PROPERTY LAW SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION Mr. Gary Plotz May 8, 1997 page 2 I think it is a lot easier to deal with the legal issues associated with the trail, as well as getting an easement dedicated for the connector track, if we're doing this in person as opposed to by correspondence. Thus, it would seem that we would need authorization from your office for around $1,000 in travel expenses and I think the past practice has been to request City Council approval. I would suggest you place this on the City Council Agenda for next week or we should discuss it in the interim. Thank you. Best regards. Very truly yours, ARNOLD, ANDERSON & DOVE, PLLP J on 7{ G. Barry Anderson GB ,tjt__ l , • MINNESOTA ® OFFICE OF Environmental Assistance ' r' — tF HUTCH 'ON May 8, 1997 Mr. Gary Plotz, Administrator City of Hutchinson City Center 111 Hassan Street SE Hutchinson, Minnesota 55350 -2522 Dear Mr. Plotz: I am pleased to send you the Grant Agreement for the $100,000.00 grant awarded to the City of Hutchinson through the Minnesota Office of Environmental Assistance's (OEA) Solid Waste Separation and Waite Education Grant Programs to provide education, separation, and collection for composting of the organic portion of the solid waste stream. The OEA and the City of Hutchinson must now execute this Agreement prior to implementation of the project. • The enclosed Agreement outlines the roles and responsibilities of the City of Hutchinson and the OEA. In order to execute the Agreement, the OEA requests that you, as the authorized signature: Sign all four (4) copies of the Grant Agreement; and Return the four (4) copies of the Grant Agreement to me, as soon as possible, at: Minnesota Office of Environmental Assistance 520 Lafayette Rd. N., Second Floor. St. Paul, Minnesota 55155 -4100 Once all the copies are returned, the OEA will complete execution of the Grant Agreement and provide a fully executed copy to you fof your records. Please remember that eligible costs cannot be incurred until the Agreement is fully executed. We will notify you at that time. If you have questions about the Agreement, please contact me at (612) 215 -0194 or 800 - 657 -3843. es Grants Coordinator Enclosures RipmuI (0w,s in Brahvrd. Lkruw Iikc,.I)ulnch. %l.ankiII and ILalnaLr 520 Lafayette Road N. • 2nd Floor • S1. Paul MN 5 5 1 55 -4100 • 612. 296 -3417 •Toll Free 800- 657 -3843 • Fax 612- 215 -0246 flNrl. I1•r uunrnun R<<i,5 , Ilr /. S OLID WASTE SEPARAT . . r•. GRANT AGREEMEN by and between THE CITY OF III ITCHINSON and MINNESOTA OFFICE OF ENVIRONMENTAL ASSISTANCE WHEREAS, the Minnesota Office of Environmental Assistance (OEA or State) administers the Solid Waste Separation Grant Program pursuant to Minn. Stat. section 115A.53 and Minn. Rules Parts 9210.0400 to 9210.0460, and the Waste Education Grant Program pursuant to Minn. Stat. section 115.072 and Minn. 92 10. 1000 to 9210.1060; and WHEREAS, the OEA solicited applications for both solid waste separation and waste education grants; and WHEREAS, the City of Hutchinson applied to the OEA for a combined solid waste separation and waste education grant; and WHEREAS, on January 27, 1997, the Director of the OEA approved a combined solid waste separation and waste education grant award of One Hundred Thousand Dollars • ($100,000.00) to the City of Hutchinson; NOW, THEREFORE, the OEA and the City of Hutchinson (Grantee), enter into this Grant Agreement (Agreement) and agree as follows: 1 ; ; •. • ; �l�hl.rr This Agreement shall be interpreted pursuant to the laws of the State of Minnesota. The venue of any action under this Agreement shall be the District Court, Ramsey County, Minnesota. All attachments to this Agreement shall be considered integral and enforceable parts of this Agreement. All representations made by the Grantee to induce the OEA to award this grant constitute material representations of fact upon which the OEA relied in awarding this grant and entering into this Agreement. Grantee is obligated and expressly agrees to undertake and complete the Project as described in Grantee's proposal and supplements and correspondence related thereto (on file at the OEA and incorporated into this Agreement by reference) in the time and manner set forth in n U Attachment A and in accordance with the requirements of this Agreement. The work plan, timeline and budget in Attachment A shall, if in conflict with those described in the Grantee's proposal, supersede those parts of Grantee's proposal. Grantee shall make no changes in the • tasks or schedules set forth in Attachment A without the consent of the OEA as provided in Parts VII and VIII, as applicable. Any information developed as part of the Project must include a statement acknowledging the Minnesota Office of Environmental Assistance as a finding source. ' t • 1 1►I. 1► BEEM PTOMM, u u'� 1 1 roe1 1. The OEA shall disburse to the Grantee a maximum total of One Hundred Thousand Dollars ($100,000.00) or 50% (fifty percent) of eligible project costs incurred by Grantee, whichever is less. Unless the Grantee advises the OEA to the contrary, in writing, all disbursements by the OEA shall be made to Grantee at the following address: The City of Hutchinson City Center 111 Hassan Street SE Hutchinson, MN 55350 2. Grant funds shall be disbursed as follows: a. The OEA shall disburse Seventy -Five (75) percent of the grant funds within 30 days after Grant Agreement execution; and b. The OEA shall disburse the remaining Twenty -Five (25) percent of the funds within thirty (30) days after Grantee submittal and OEA's acceptance of the first annual report summarizing the developmental and operational history of the project and documentation of all incurred expenditures, including receipts for capital costs. 3. All Solid Waste Separation grant funds must be expended within one year of execution of the Agreement. No funds shall be disbursed by the OEA in the absence of adequate documentation as determined by the OEA. Reimbursement of any cost shall not be construed as a waiver by the OEA of any noncompliance by Grantee with this Agreement. 4. The OEA shall reimburse Grantee for only those expenditures for which documentation is submitted prior to the expiration date of this Agreement or at the time of the OEA approval of the final project report, whichever occurs first. _0 5. Disbursements shall be made under this Agreement only if the OEA, in its sole discretion, determines that Grantee is satisfactorily fulfilling the obligations under this • Agreement. Disbursements shall not be construed as a waiver by the OEA of any authority it may have to remedy Grantee noncompliance with this Agreement. I. Grantee shall provide matching funds necessary for the completion of the Project of not less than 50% (Fifty percent) of eligible project costs for eligible expenses as outlined in the October (Fall) 1996 Grant Program Request For Proposals. 2. Grantee shall assure that sufficient financing is available to the Project to assure its satisfactory completion. Grantee shall not reduce the monetary amount it has committed to the Project through its own or other funds, as specified in Attachment A, without prior written notice and approval of the OEA. 3. Grantee shall bear the sole responsibility for cost overruns in completing this Project. The OEA shall not consider awarding nor shall it award additional funds to complete this Project. WISMAN IUMITEWN alie • 3-We ii PR N REVIE Wes IN ZWKW A. Grantee shall use grant funds solely for eligible costs, as defined in Minnesota • Rules Parts 9210.0400 to 9210.0460 and 92 10. 1000 to 9210.1060 and as identified in Attachment A. B. Grantee shall use grant funds solely for eligible costs incurred after the effective date of this Agreement and before the expiration date of this Agreement. C. The OEA has determined the amount of the grant award to the Grantee based on the Grantee's estimate of eligible costs. If at the conclusion of the Agreement it is determined that the OEA's contribution to the Project costs exceeds the percentage of eligible costs in Part IILA.I., the Grantee shall promptly return to the OEA the difference between the disbursed funds and the percentage of eligible costs under this Agreement. D. In completing the tasks described in Attachment A, the Grantee shall use the personnel identified in Grantee's proposal. To substitute personnel other than those individuals identified in the proposal, the Grantee shall first obtain the written approval of the OEA's authorized agent. E. Grantee shall be reimbursed for travel and subsistence expenses as contained in Attachment A, in the same manner and in no greater amount than provided in the current "Non- 0 managerial Unrepresented Employees Plan" promulgated by the Commissioner of Employee Relations, Attachment D. Grantee shall not be reimbursed for travel and subsistence expense incurred outside the State of Minnesota unless it is provided for in Attachment A or Grantee has . received prior written approval for such out of state travel from the State. F. Use and Sale of Equipment, Grantee shall continue to use the equipment purchased under this Agreement to implement the Project until the date of termination of this Agreement. If Grantee ceases to use the equipment to implement the Project prior to termination of this Agreement, Grantee shall repay to the OEA the amount of the OEA grant funds disbursed for acquisition of the equipment. Nothing in this paragraph will prevent the OEA from also determining that Grantee is in default under Part VI of this Agreement. Grantee shall not sell the equipment purchased under this Agreement prior to termination of this Agreement without prior written authorization of the OEA. If the Grantee sells this equipment before termination of this Agreement, Grantee shall repay to the OEA the amount of the OEA grant funds disbursed for acquisition of the equipment, unless the proceeds of the sale are used to purchase upgraded equipment to be used to continue to operate the Project. 11 01 M1 19 Lem Oki 1161911 1:1► A. Annual Reports. Grantee shall submit annual reports on the developmental and operational history of the project for the three (3) years this Agreement is in effect. The Grantee shall prepare annual reports to the satisfaction of the OEA's authorized agent s ummarizin g the status of the Project to date, including: work plan tasks completed, status of timelines, interim results achieved, difficulties encountered in implementing the Project; and solutions considered or implemented to resolve those difficulties. The annual reports shall also s ummarize all expenses incurred to date in completing work plan tasks, including labor, equipment, materials, travel and other expenses outlined in Attachment A. Each annual report shall indicate the actual out -of- pocket cash and in -kind expenditures of the Grantee and the number of hours of labor performed pursuant to this Agreement. The annual reports shall be prepared and submitted in the format specified in Attachment B. i. 1 .•• 1. Draft proiect report Within forty -five (45) days after the third anniversary of the Agreement, the Grantee shall submit its third and final annual report. The draft report shall describe, in detail, the conclusions reached from implementing the Project, the technical and economic feasibility of the Project, and the total expenses incurred in implementing the Project. The final report shall be submitted in the format described in Attachment B. The OEA shall review the report and provide the Grantee with written comments. 4 0 If the Project is terminated prior to the scheduled completion, the draft report shall also discuss the conclusions that led to the termination of the Project, results achieved on all tasks • completed and recommendations on how these results could be used in future projects. 2. Final ron iect report The Grantee shall prepare and submit additional information reasonably requested by the OEA within thirty (30) days after receiving written OEA comments on the draft report. The Grantee shall revise the draft report to respond fully to the comments of the OEA and shall submit four (4) copies (one unbound for copying) as the final report to the OEA. The OEA shall review this final report to assure that the report fully responds to the OEA comments. 3. Final prQiect summary At the same time the final report is submitted, the Grantee will submit a one page summary of the project and its results in a format specified by the OEA. C. Presentations During and /or upon completion of the Project, the Grantee shall make a minimum of two presentations of the information gained in this Project to appropriate parties. Examples of appropriate parties include, but are not limited to: the MPCA's annual solid waste seminar and other professional associations that could benefit from the information obtained in the Project. Written notification of each presentation given shall be forwarded to the OEA. The notification shall include the name of the organization, the information presented and an estimate of the number of people present when the presentation was given. • D. Confidentiality of data submitted as parr_ of reports. Grantee shall use its best effort to provide all information required to be submitted in a form which can be released as public information. Grantee shall use its best efforts to prepare reports and other information without disclosing trade secret or sales information. If Grantee determines that it must disclose trade secret or sales information and Grantee wishes to keep that information confidential, Grantee shall do the following: 1. In its report, Grantee shall segregate all information Grantee believes to be confidential from all non - confidential information. 2. Grantee shall submit a written request for confidentiality to the OEA at the same time it submits the report containing confidential information. The OEA shall not consider a request for confidentiality unless it is made in accordance with the above two requirements. If a request is made in accordance with the above requirements, the OEA shall determine whether the information qualifies for confidential treatment under Minn. Slat. 13.37 and 115A.06. If the OEA determines that the information may 0 be kept confidential, the OEA shall use its best efforts to keep the information confidential, in accordance with the procedures specified in Attachment C. VI. FAILURE TO COMPLY • Failure of Grantee to comply with the terms and conditions of this Agreement shall constitute default under the terms of this Agreement unless the OEA agrees to an amendment or extension under Parts VII or VIII. Upon default, the OEA shall rescind the grant and cease making further disbursements. Grantee shall promptly return all unspent grant funds disbursed by the OEA. If the Director of the OEA finds that the default is unreasonable, the Grantee shall repay the grant in full. Upon rescission, the Grantee shall summarize in a written report the work completed prior to rescission. In addition to rescission, the Director of the OEA reserves the right to exercise all other available remedies. Before finding Grantee in default, the Director of the OEA shall send a written notice to Grantee describing the Grantee's failure to comply with the terms and conditions of this Agreement. Upon receipt of this notice, Grantee shall have thirty (30) days to respond as set out below. If no response is received by the OEA within thirty (30) days, the Director of the OEA shall find that the Grantee is in default. C. E=onse to Notice of Default 0 The D of the OEA may agree to amend the terms and conditions of this Agreement if the Grantee submits a written response supported by documentation that establishes that an amendment is justified. CHIM u ►P ul u Except for extensions of timelines and work plan and line item budget changes approved under Part VIII, all amendments to this Agreement shall be in writing and shall be executed by the parties. A. The State's Authorized Agent may grant an extension of any time schedule established in this Agreement if. (1) the Grantee requests the extension in a timely manner; (2) good cause exists for the extension; and (3) the extension will not cause or necessitate an extension of the term of this Agreement. Requests for extensions shall be in writing and shall specify the existing deadline for which the extension is sought, the new deadline sought, and the reasons for the request. An extension is not effective unless it is approved in writing by the . State's Authorized Agent. B. The State's Authorized Agent may approve work plan changes to Attachment A and line item budget changes to Attachment A if. (1) the Grantee requests the change in a timely manner: (2) good cause exists for the change; (3) the change will notjeopardize the success of the Project or reduce the Grantee's expenditures to an amount less than the matching amount required by Part III.B. of this Agreement; and (4) the change will not increase the amount of the grant. Requests for modifications shall be in writing. A work plan or line item budget change is not effective unless it is approved in writing by the State's Authorized Agent. *Annul NOWNWIM 0 W Its] V:1 ON • 1 . • d11d 1. All rights, title, and interest in all intellectual property which Grantee shall conceive or originate, either individually or jointly with others, and which arises as a result of the Project will be the property of the State and are by this Agreement assigned to the State along with ownership of any and all copyrights or patents in the intellectual property. Grantee agrees, upon the request of the State, to execute all papers and perform all other acts necessary to assist the State to obtain and register copyrights or patents on such material. Where applicable, works of authorship created by Grantee for the State in performance of this Agreement shall be considered "works made for hire" as defined in the U.S. Copyright Act. 2. Any reports, studies, photographs, negatives, or other documents prepared by Grantee in the performance of its obligations under this Agreement shall be the exclusive property of the State and all such materials shall be remitted to the State by Grantee upon completion, termination or cancellation of this Agreement. Grantee shall not use, willingly allow or cause to have such materials used for any purpose other than performance of Grantee's obligations under this Agreement without the prior written consent of the State. 3. The State hereby grants to Grantee a non - exclusive license to use, reproduce and distribute the intellectual property for public information purposes, but not to sell such materials for profit. M. 1.u, If Grantee acts in a manner inconsistent with Part IX.A., the OEA may seek damages from Grantee. This clause is not intended to stand in lieu of any other remedy the OEA may have for breach of contract of this or any other term of this Agreement. is The Grantee agrees to comply with the Minnesota Data Practices Act as it applies to all • data provided by the State in accordance with this grant contract and as it applies to all data created, gathered, generated or acquired in accordance with this grant contract. For purposes of administering this Agreement, the State's authorized agent is Mary L. James and the Grantee's authorized agents are Gary Plotz and/or Randy DeVries. To the extent possible, communication between the parties shall be made through the authorized agents. The parties may substitute authorized agents as necessary by written notification to each other. /� ► ul ► The Grantee shall neither assign nor transfer any rights or obligations under this Agreement without the prior written consent of the OEA. This Agreement shall be binding on the OEA, its successors and assigns and on the Grantee, its successors and assigns. In the event that the Grantee becomes aware that there will be a change in its ownership or control, the Grantee shall promptly notify the State's Authorized Agent, in writing, of the change. FUNTA WAYON F ICURVA UNKIM KI&XII 1 To the extent specified in Attachment A, Grantee is authorized to enter into subcontracts needed to complete the work specified in this Agreement. The OEA shall be made a third party beneficiary to all subcontracts. Before using a subcontractor to complete work specified in this Agreement, Grantee must first obtain the written approval of the State's Authorized Agent. The Grantee agrees to indemnify and save and hold harmless the OEA and its agents and employees from any and all claims or causes of action arising from the performance of this Agreement, including non - negligent acts or omissions, by the Grantee or the Grantee's contractors, agents or employees. This clause shall not be construed to bar any legal remedies the Grantee may have for the OEA's failure to fulfill its obligations pursuant to this Agreement. 11 U 1. : • • ► • \ The parties agree that the Intellectual Property provisions, Part IX, and the Accounting and Auditing provision, Part XXII, of this Agreement shall survive the expiration and rescission provisions set forth in this Agreement. The parties also agree that the Liability provision of this Agreement, Part XV, shall survive the expiration and rescission provisions of this Agreement and shall remain in full force and effect for a period of six years after the expiration of this Agreement. The Grantee is responsible for taking all acts necessary to ensure the health and safety of personnel performing tasks associated with work funded under this Agreement. The Grantee shall provide insurance adequate to cover all potential risks associated with the work to be funded under this Agreement. Subcontractors shall be responsible for providing insurance to cover risks associated with work performed by subcontractors, including, but not limited to, workers' compensation and unemployment insurance. K!r/!MS161900 u ' • A 121► r•]�l•].i111`►lyr ��I�II:�J/"W NUT .W.[•y1[•ly The Grantee shall comply with all applicable state laws relating to nondiscrimination and affirmative action. XIX. HUMAN RIGHTS The Grantee, in the conduct of the Project, shall comply with the Americans with Disabilities Act of 1990 (P.L. 100 -336); Minnesota Statutes Ch. 363 (the Minnesota Human Rights Act), and Minnesota Statutes Sec. 181.59 which forbid discriminatory practices and provide for affirmative action; and all applicable rules and subsequent amendments thereto. The Grantee shall conduct the Project in compliance with all applicable provisions of federal, state, and local laws. The Grantee and Grantee's agents shall obtain all federal, state and local permits, licenses and authorizations necessary to implement and operate the Project. • h *l • 1► Ih : MEMORIES : 1/ :I► C.9 The Grantee shall retain receipts for and maintain detailed records of all expenditures • related to this Agreement. The books, records, documents, and accounting procedures and practices of the Grantee relevant to this Agreement will be subject to examination during regular business hours by the OEA, the state auditor, and the legislative auditor. When requested by the State's Authorized Agent, the Grantee shall produce all records relevant to work performed under this Agreement, and submit those records to the OEA. The Grantee shall maintain all records associated with this Agreement for five years, or as long as requested by the State's Authorized Agent, whichever establishes a greater length of time. In addition, the Grantee shall permit representatives of the OEA to visit the site of the Project, during regular business hours, to review the status of the Project and verify expenditures made under this Agreement. This Agreement shall be effective on the date it is executed as to encumbrance as required by Minn. Stat. 16A15. (Refer to front page - State of Minnesota Grant Contract form.) •N r;un:r0►• ; u ► This Agreement shall remain in effect until Grantee submittal and OEA acceptance of the Final Report and Summary. XXV. RETURN OF CTRANTACTREEN= 0 Failure by the Grantee to execute and return the grant agreement within thirty (30) days of receipt of the grant agreement constitutes an unreasonable default under Part VI. A. of this Agreement. All persons doing business with the State of Minnesota are required by Minn. Stat. 270.66 to provide their social security number or Federal, employer tax identification number and Minnesota tax identification number. This information may be used in the enforcement of federal and state tax laws. Supplying these numbers could result in action to require the filing of state tax returns and the payment of delinquent state tax liabilities. This Agreement will not be approved unless these numbers are provided. These numbers will be available to federal and state tax authorities and state personnel involved in the payment of state obligations. Minnesota I.D. No. 8022935 and Federal Tax I.D. No. 41- 6005253 10 IN WITNESS WHEREOF, the parties hereto have executed this Agreement intending to be bound thereby. • APPROVED: CITY OF HUTCHINSON (Attached Resolution authorizing signature) MINNESOTA OFFICE OF ENVIRONMENTAL ASSISTANCE: C Title Date As to form and execution: C Title Date �J 7 /24 /96- Grant -05 By Title Date As to form and execution by the ATTORNEY GENERAL: By Date (For other signatures, refer to front page - State of Minnesota Grant Contract form.) • 11 RESOLUTION NO. 10759 RESOLUTION TO APPROVE GRANT APPLICATION FOR . LOW TECH GRANT FROM OFFICE OF ENVIRONMENTAL ASSISTANCE WHEREAS, the City of Hutchinson has made application to the Office of Environmental Assistance's Solid Waste Combined Grants Program, BE IT RESOLVED, by the Hutchinson City Council, that the City of Hutchinson will implement the project, provide necessary local funding and accept and exercise the governmental powers necessary to develop and operate the project. BE IT FURTHER RESOLVED, the Hutchinson City Council authorizes the City Administrator to sign the Solid Waste Combined Grant application on behalf of the City of Hutchinson. Adopted by the City Council this 8th day of October, 1996. MArlin T rgerso Mavor ATTEST: w Gary D. Pkti City Administrator ATTACHMENT A WORK PLAN - TIMELINE - BUDGET 0 City of Hutchinson - Workplan and Timeline Months from Date of Grant Agreement Execution Task/Description Responsible Party 1 2 31 41 5 61 7 8 9110 11112113118124125 36 37 DesignIFeasiblifty Studies C8 /NaturTech X Select Participants 4 Schools 4 Businesses 250 Residen city X Conduct Waste Stream Audits - 8+ School & Bus. & 1+ Residential NaturTech X Select Participating Hauler(s) 1 or More Based on Interest & Bich city X Select/Order 5 Containers/Liners (Type and Size Appropriate) City/NeturTech X IX I X X OlstriNAe Containers/Liners to Participants city Ix Design/Coordinate Education Program for Participants. 1+ On -s to City/NaturTech X X X X IX Training for Each School & Bus. & 2+ for Residential. & On-poi Provide Educational Materials/Training to Participants. Program will CttyM. John's U. X X X be Integrated into Studies Related to Biology Recycling & Ecol Collection of Cornpostable Materials Bi-w-eeldy for Schools & Bus. Haulers X X X X IX X X fX X X X X X Weeldy for Residents. Adjusted on an "As- needed" Basis Develop and Distribute 100 Videos on Onganics CornpGstim Crty X Present Information to City of Hutchinson 2+ Public Meetings & Media City X Present Information to St. John's University 1+ Classroom Settings NaturTech X X X Present Information to the MPCA Minnesota Solid Waste Seminar -At Cftyft4aturTech I I X X Least Once During the 3 r Program Composting Operations city X X X X X X X X X X X X Compost Sales City X X X Ix X X X X X X On-going Data Collectlon/Monitorin of Program Cft /NaturTech X X X X X X X X X X X X X X X X X X Submit First Annual Re (Request Final Payment) /NaturTech X Submit Second Annual Report City/NaturTech X Submit Final Report Cit MaturTech X Submit Pro ect Summa RJaturTech X 10 11 12 13 14 15 16 17 18 19 20 0 EXPENSES 1 2 3 4 5 6 7 8 1 11 1 1 1 1 1 1 7 1 1 9 20 2 1 22 23 2 City of Hutchinson - Project Costs and Financing Year 1 Year Year 3 M # M atrh [;rant Match Grant Match Feasutll and Design 450 trs $34AOAV s s 5 5,100.00 $ $ 1 10.200.00 $ $ - S S - - S S - S S - - and Edicatlon 1225 hrs $12.00Rr S S 1 14,700.00 S S - - $ $ $ $ - - $ $ - $ - - Collection Overm 500In 517.00rtr $ $ S S 8 8,500.00 $ $ S S 8 8,500.00 S S S 8 8,500.00 nee Beneft 6 Other Related Taxes S S 7 7,920.00 $ $ 7 7 1 400.00 $ $ 0 $ 3 3,400.00 S S - S S 3 00 Wtfee 300 txs S68.00AT $ $ 5 5.100.00 S S 5 5,100.00 $ $ - S S $ $ - S S - - al Clerical & General AdtYdstration $ $ $ $ 3 30,000.00 $ $ $ $ 3 30,000.00 S S S S 3 30,000.00 (max S027hrib) S S 2 2,500.00 S S 2 250.00 S S - S S - - $ $ men S S 2 22,000.00 4RentAJMes a Total S 100,000.00 S 340,700.00 $ - $ 121,180.0 S - S 121,180.0 1 r� L ATTACHMENT B REPORTING FORMS ATTACHMENT B ANNUAL/PROGRESS/FINAL REPORT FOR SOLID WASTE SEPARATION GRANT PROGRAM OFFICE OF ENVIRONMENTAL ASSISTANCE Local Government Assistance 520 Lafayette Rd. N., 2nd Floor St. Paul, MN 55155 -4100 Instructions for Completing the Annual/Progress/Final Report: Project participants are required to complete and submit reports as outlined in the grant agreement and work plan during the grant period. Failure to submit a completed report may result in the loss of grant funds or the withholding of additional grant disbursements. • A grantee may fill -in- the - blanks in the form provided, or you may tailor the f= to more accurately fit your project. Since projects are very diverse, the latter method may work best. The average report will be 3 to 4 pages. Please refer to the information requested by the OEA grant manager for your grant. ANNUAL/PROGRESS/FINAL REPORT FOR SOLID WASTE SEPARATION GRANT PROGRAM OFFICE OF ENVIRONMENTAL ASSISTANCE Local Government Assistance 520 Lafayette Rd. N., 2nd Floor St. Paul, MN 55155 -4100 — Introduction: AnnuaUProgress/Final reports provide the OEA with an update on the project being implemented and help the grant recipient organize information that will be required in the final report. To prepare your annual /progress/final report, please refer back to the workplan and budget in your grant application. Grantee: Grant amount: S Project start date This is the: Annual report # Submittal date Contact name & phone #: Grantee match: $ Time period covered Progress report #_ Draft Final report _ Final report _ • SECTION I — WORKPLAN 1. Describe the work that has been done during this reporting period. Please refer back to the activities listed in the workplan in your grant proposal; indicate which tasks have been completed and which are on- going. Attach copies of any documents or products that have been produced during the reporting period including brochures, press releases, etc 1) 2. Describe any problems, delays or difficulties that have occurred in completing the project work • program. How did (does) the grantee (plan to) resolve them? SECTION II - PARTICIPANTS IN PROJECT 3. Have there been any changes in project staff or contractors or has participation by companies or units of government changed? SECTION III - QUANTIFIABLE RESULTS TO -DATE 4. Detail the amount of material or toxicity prevented, reused or recycled or markets developed or analyzed through this grant during the reporting period. Please use a table or chart format if you have a significant amount of data. SECTION IV -- BUDGET 6. Fill in the attached (page 6) Budget Reporting Form -- Project Budget for Solid Waste Separation Grant Program. Attach receipts for any expenditures which will in aggregate total $500 or more. SECTION VII -- ADDITIONAL QUESTIONS FOR FINAL REPORT Answer these additional questions if you are completing your final report. • 7. Was the project a success? Did you achieve your goals? 8. What, if any, data was generated, collected or analyzed by the project sponsor? i 9. List local matching funds. Describe any additional amounts and sources of local cash and/or in -kind matching funds that were secured. Attach letters of verification for new amounts and sources that have not been previously reported to the OEA. i 4 10. What would the project sponsor recommend to others interested in attempting a project like yours? • 11. Who, if anyone, should the OEA provide information to about this project? (The media, businesses, other agencies, etc.) 12. Please provide any suggestions you may have for improving the OEA's Grant Programs. SECTION VIII -- ADDITIONAL REQUIREMENTS AS REQUESTED BY THE OEA GRANT MANAGER rptfrm.doc Budget Reporting Form -- Project Budget for the Solid Waste Sepadation Grant for Period to CAPITAL COSTS Equipment Purchased list: ................................................ 1 Budgeted Amount Costs this period Costs to -Date for Project 2 3 4 5 Site Improvements list: ................................................... 1 2 3 Total Capital Costs OEA PORTION OF CAPITAL COSTS MATCH PORTION OF CAPITAL COSTS ...,....... OTHER COSTS Labor Costs list hours at $/ hr :........... ............................... 1 Budgeted Amount Costs this period Costs to -Date for Project 2 3 Printing/Advertising .......................... ............................... Travel............................................... ............................... Supplies............................................ ............................... Overhead........................................... ............................... Other list: Total Other Costs OEA PORTION OF OTHER COSTS MATCH PORTION OF OTHER COSTS GRAND TOTAL 6 P ATTACHMENT C TREATMENT OF NON - PUBLIC INFORMATION 0 Non - Public Treatment of Data Submitted at the • Minnesota Office of Environmental Assistance July 1994 This memorandum sets out the procedures that the Office of Environmental Assistance (OEA) will use to: (1) determine whether information submitted qualifies for non - public treatment, and (2) maintain the confidentiality of information that qualifies for non- public treatment. Any person submitting information to the OEA may request that that information be treated as non - public. A request for confidentiality must be made in writing. It must specify the particular information that the submitter does not want disclosed and the reasons the information qualifies for "non- public" treatment under Minn. Stat. I15A.06, subd. 13 or 13.37, subd. 1(b) (attached). The request for confidentiality must be submitted to the OEA at the same time the affected information is submitted. Unless accompanied by a written request for confidentiality, information submitted to the OEA will be treated as public information and may be disclosed to anyone requesting it. The Director of the OEA will promptly approve or deny all written requests for confidentiality. In reviewing a request, the Director may seek the advice of the Attorney General's Office. The Director's determination will be based on the criteria established under Minn. Stat. I I5A.06, subd. 13 and 13.37, subd. 1(b) and other applicable law. During the time the Director is reviewing a request for confidentiality, the affected information will be treated as non - public. If the Director approves a request for confidentiality, the Director will notify the submitter in writing and the affected information will be treated as non - public. If the Director denies some or all of the request for confidentiality, the Director will notify the submitter in writing and will provide the submitter an opportunity to request that the information be returned. All requests for the return of information must be made in writing and must be received by the OEA within seven days of receipt of the notice of denial. If a written request is received in this time period, the affected information will be returned. If a written request is not received, the affected information will be treated as public. 0 The opportunity to retrieve submitted information does not excuse a person's duty to submit information required by law. If the returned information is required by law or rule, it will remain the obligation of the submitter to provide that information. Further, if the returned information is required by law or rule as a condition for proceeding forward with a grant • application, the OEA will not proceed on that application unless, in accordance with the time periods allowed, the submitter provides the required information to the OEA in a form that may • be released to the public or that qualifies for non - public treatment under Minnesota law. III. Persons Authorized to Examine Non - public Information When information is determined by the Director to be non - public, access to that information will be limited to: OEA staff; persons under contract to the OEA whose work reasonably requires access to the information; and staff of other state agencies who are assisting the OEA in carrying out its duties. Each of these authorized persons shall be bound not to disclose the non - public information to any unauthorized person. Members of the OEA advisory task forces, committees and counties are not authorized to have access to non - public information. A. The Director shall designate a person to administer all procedures relative to the filing and access to non - public information. B. Non - public information will be identified as such and kept in a separate locked file. The Director's designee will maintain the non - public file, will retain the keys to the files and will limit access to authorized persons. C. A person seeking access to non - public information must sign for the information. The person signing for the information is responsible for the return of the information to the locked file. The person signing for the information shall not make the information available to any other person until that person signs for it D. Non - public information may not be copied without the approval of the Director. Approval will only be given where the information must be examined by an authorized person who is unable to examine the information at the OEA offices. The Director's designee will note in the locked file the date of the copying, the number of copies made, and the persons who have possession of the copies. The Director's designee will also mark in ink on each copy the number of that copy (e.g. Copy # 1, Copy 42, Copy #3). All copies must be returned to the Director's designee as soon as they are no longer needed. E. If a document contains both non - public and public information the OEA shall prepare a re -dated copy of the document omitting the information classified as non - public. The re -dated copy shall be maintained in the public file together with a note specifying that the complete document is being maintained in the non - public file. A duplicated copy of this note shall be placed in the non - public file. F. Summary data prepared from non - public information must be reviewed by the Director before it is disclosed to the public. When summary data has been prepared and is available to the public the Director's designee shall place a note in the locked file stating that summary data is available. A duplicate copy of this note shall be placed in the public file. G. Non - public information will not be brought to meetings attended by persons not authorized to have access to the information. u 13.37 GENERAL NONPUBLIC DATA. Subdivision I. Definitions. As used in this section, the following terms have the meanings given them. (a) "Security information' means government data the disclosure of which would be likely to substantially jeopardize the security of information, possessions, individuals or property against theft. tampering, improper use, attempted escape, illegal disclosure, trespass, or physical injury. "Security information' includes crime prevention block maps and lists of volunteers who participate in community crime prevention programs and their home addresses and telephone numbers. _ (b) "Trade secret information" means government data, including a formula, pattern, compilation, program, device, method, technique or process (1) that was supplied by the affected individual or organization, (2) that is the subject of efforts by the individual or organization that are reasonable under the circumstances to maintain its secrecy, and (3) that derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use. (c) "Labor relations information' means management positions on economic and noneconomic items that have not been presented during the collective bargaining process or interest arbitration, including information specifically collected or created to prepare the management position. Subd. 2 Classification. 'Be following government data is classified as nonpublic data with regard to data not on individuals, pursuant to section 13.02, subdivision 9, and as private data with regard to data on individuals, pursuant to section 13.02, subdivision 12: Security information; trade secret information; sealed absentee ballots prior to opening by an election judge; sealed bids, including the number of bids received, prior to the opening of the bids; and labor relations information, provided that specific labor relations information which relates to a specific labor organization is classified as protected nonpublic data pursuant to section 13.02, subdivision 13. Subd. 3. Data dissemination. Crime prevention block maps and names, home addresses, and telephone numbers of volunteers who participate in community crime prevention programs may be disseminated to volunteers participating in crime prevention programs. History: 1980 c 603 s 15; 1981 c 311 s 11.39; 1982 c 545 s 24; 1984 c 436 s 15; 1985 c 248 s 4; 1990c573s3,4 115A.06 POWERS OF THE OFFICE. Subd. 13. Private and nonpublic data Any data held by the office which consists of trade secret information as defined by section 13.37, subdivision 1, clause (b), or sales information, shall be classified as private or nonpublic data as defined in section 13.02, subdivisions 9 and 12. When data is classified private or nonpublic pursuant to this subdivision the office may: (a) Use the data to compile and publish analyses or summaries and to carry out its statutory responsibilities in a manner which does not identify the subject of the data; or (b) Disclose the data when it is obligated to disclose it to comply with federal law or regulation but only to the extent required by the federal law or regulation. The subject of data classified as private or nonpublic pursuant to this subdivision may authorize the disclosure of some or all of that data by the office. Subd. 14. Waste rendered nonhazardous and industrial waste. The office shall encourage improved management of waste rendered nonhazardous and industrial waste that should be managed separately from mixed municipal solid waste, and may provide technical and planning assistance to political subdivisions, waste generators, and others for the purpose of identifying, developing, and implementing alternative management methods for those wastes. History: 1980 c 564 art 2 s 3 1981 c 311 s 39; 1981 c 352 s 4 -6; 1982 c 545 s 24; 1982 c 569 s 1.2; 1983 c 373 s 9; 1984 c 644 s 3; 1986 c 425 s 19; 1986 c 444; 1987 c 348 s 3; 1989 c 335 art I s 269; 1991 c 199 art 2 s 7; 1991 c 326 s 5; 1991 c 337 s 8 ATTACHMENT D NON - MANAGERIAL UNREPRESENTED EMPLOYEES PLAN fb Non - managerial Unrepresented Employees Plan (Formerly Commissioner's Plan) Prepared pursuant to Minn. Stat 43A.18, subdivision 2, by the: Minnesota Department of Employee Relations, 200 Centennial Office Building, 658 Cedar Street, St. Paul, Minnesota 55155 Expense Reimbursement General. The Appointing Authority may authorize payment of travel and other expenses and reimbursement of special expenses for employees and interns in accord with the provisions of this Chapter, Chapter 8, and Administrative Procedure 4.4 for the effective conduct of the State's business. Such authorization must be granted prior to incurring the actual expenses. Privately -Owned Vehicles and Aircraft. An employee shall be reimbursed for the use of privately -owned vehicles and aircraft under the situations and at the rates specified below. In all cases, mileage must be on the most direct route according to Department of Transportation records. Situation Rate Per Mile • Use of personal automobile when a State- $.27 owned vehicle is not available. • Use of personal automobile when a State- $.21 owned vehicle is available and declined by the employee. • Use of personal van or van -type vehicle $.40 specifically equipped with a ramp, lift, or other level- changing device designed to provide wheelchair access. • Use of personal aircraft provided that the S.43 employee demonstrates adequate liability coverage under the requirements of M.S. 360.59, subdivision 10. • • Use of personal motorcycle or similar two- 5.13 wheel motorized vehicle. When an employee does not report to the permanent work location during the day or makes business calls before or after reporting to the permanent work location, the allowable mileage is: (1) the lesser of the mileage from the employee's residence to the first stop or from his /her permanent work location to the first stop, (2) all mileage between points visited on State business during the day, and (3) the lesser of the mileage from the last stop to the employee's residence or from the last stop to his /her permanent work location. Other Travel Expenses. Upon approval of the Appointing Authority, employees in travel status may be reimbursed for expenses described below in the amounts actually incurred not to exceed any maximum amounts specified below. Where anticipated expenses total at least $100.00, the Appointing Authority shall advance the employee the amount of the anticipated expenses upon the employee's request made a reasonable period of time prior to the travel date. If the amount advanced exceeds the actual expenses, the employee shall return the excess within two weeks of return from travel. The Appointing Authority may issue the employee a State -owned credit card in lieu of a travel advance. Reimbursable expenses may include, but are not limited to, the following: • Commercial transportation (air, taxi, rental car, etc.) provided that no air transportation shall be by first class (unless authorized by an Appointing Authority if no other seating is available) and that reimbursement for travel which includes more than one destination visited for State purposes and non -State purposes shall be in an amount equal to the cost of the air fare only to those destinations visited for State purposes. • Meals including tax and a reasonable gratuity. Employees shall be reimbursed for meals under the following conditions: 1. Breakfast. Breakfast reimbursements may be claimed if the employee leaves home before 6:00 a.m. or is away from home overnight. 2. Lunch. Lunch reimbursements may be claimed if the employee is in travel status more than 35 miles away from his/her normal office or is away from home overnight. 3. Dinner. Dinner reimbursements may be claimed if the employee cannot return home until after 7:00 p.m. or is away from home overnight. 4. Reimbursement Amount. Except for the metropolitan areas listed below, the maximum reimbursement for meals including tax and gratuity shall be: Breakfast $ 7.00 is Lunch 8.50 Dinner 14.50 • For the following metropolitan areas, the maximum reimbursement shall be: Breakfast $ 8.00 Lunch 9.50 Dinner 16.50 The metropolitan areas are Atlanta Detroit New York City Boston Hartford Philadelphia Chicago Houston San Diego Cleveland Los Angeles San Francisco Dallas Miami Seattle Denver New Orleans Washington, D.C. The higher meal reimbursement rates also include any location outside the 48 contiguous United States. Employees who are in travel status for two or more consecutive meals shall be reimbursed for the actual costs of the meals including tax and a reasonable gratuity, up to the combined maximum amount for the reimbursable meals. • Hotel and motel accommodations provided that employees exercise good judgment in incurring lodging costs and that charges are reasonable and consistent with the facilities available. • All work - related long distance telephone calls provided that the employee does not have a State telephone credit card or is unable to bill the call to the office telephone number. • Actual, documented personal telephone call charges. The maximum reimbursement for each trip shall be the result of multiplying the number of nights away from home by two (2) dollars. • Reasonable costs of dry cleaning and laundry services, not to exceed $ 16.00, each week after the first week an employee is in continued travel status. • Reasonable costs and gratuities for baggage handling. • Parking fees and toll charges. Receipts. The Appointing Authority may require receipts for any reimbursement requested by an employee under the provisions of this or any other chapter in this Plan. • Uniforms. If an Appointing Authority requires an employee to wear a uniform, the Appointing Authority shall supply the initial uniform and the employee shall be responsible for the maintenance of the uniform. E 0 00 Ehlers and Associates. Inc. lEA0ERS IN PUBLIC FINANCE April 8, 1997 Kenneth B. Merrill Finance Director City of Hutchinson 111 Hassan Street Hutchinson, MN 56350 -2522 RE: CONTINUING DISCLOSURE REMINDER As you will recall, many municipal bond issues are now subject to an amendment to the Securities and Exchange Commission's Rule 15c2 -12 requiring continuing disclosure. These regulations became effective July 3, 1995 and apply to the debt issue(s) listed below. Issue Name Annual Update Dated Date Deadline $1,050,000 General Obligation Improvement Bonds, Series 1996 09/01/96 09/30/97 • The new (continuing disclosure) regulations require certain issuers to periodically update bondholders on the status of the municipality's financial and economic condition and report the occurrence of certain "material events." For the above issue(s), you entered into a full undertaking in which you are required to provide: A. Certain updated financial information and operating data annually to all Nationally Recognized Municipal Securities Information Repositories (NRMSIR's) B. Notice of the occurrence of certain "material events" to all Nationally Recognized Municipal Securities Information Repositories or with the Municipal Securities Rulemaking Board (MSRB) and any State Information Depository ('SID ") located in your state A. Annual Update of Financial and Operating Data The time parameters and the information required to be updated were set forth in the Form of Continuing Disclosure Covenants. Please refer to each Bond Issue Summary Book for each issue for a copy of the Form of Continuing Disclosure Covenants. The updated information and a copy of your latest audited financial report must be provided before the deadline noted above. It is a "material event" if you do not provide your annual updates by the deadline. Since it is imperative that you meet the deadline, we suggest you immediately notify your auditor of that deadline so they can • complete your audited financial statements this year and in the future in a timely manner. You will need at least six to eight additional copies of your audit for submission to all the repositories. OFFICES IN MINNEAPOLIS, MN AND BROOKFIELD, WI 2950 Norwest Center . 90 South Seventh Street . Minneapolis. MN 55402 -4100 —� Telephone 612- 339 -8291 . FAX 612- 339 -0854 Kenneth B. Merrill, Finance Director April 8, 1997 • Citv of Hutchinson, Minnesota Page 2 B. Notice of Occurrence of Material Events In addition to the annual updates, you are responsible for reporting the occurrence of any of the following material events as listed in the Form of Continuing Disclosure Covenants. 1. Principal and interest payment delinquencies; 2. Non - payment related defaults; 3. Unscheduled draws on debt service reserves reflecting financial difficulties; 4. Unscheduled draws on credit enhancements reflecting financial difficulties; 5. Substitution of credit of liquidity providers, or their failure to perform; 6. Adverse tax opinions or events affecting the tax- exempt status of the securities; 7. Modification to rights of holders of the Securities; 8. Securities calls; 9. Defeasances; 10. Release, substitution or sale of property securing repayment of the Securities; 11. Rating changes; 12. Failure to provide annual financial information as required; 13. Other material event. Other types of material events may occur in your community that may be deemed "material" to the is bondholders. If any one of the listed events occurs in relation to the above issue or if you are unsure whether some other "event" is material, please call to discuss how Ehlers and Associates may help you in assessing whether the event is "material," in preparing the notice, and/or reporting it to the NRMSIR's or with the MSRB and any SID located in your state. Options for Complying with Continuing Disclosure As your financial advisor, we offer the following options for completing continuous disclosure compliance: 1. Contract with Ehlers and Associates to collect the data for the annual update, prepare necessary reporting documents, and submit the report according to SEC requirements on a fee basis, plus any out -of- pocket expenses. If in any tax collection year that Ehlers and Associates, Inc. prepares an Official Statement on behalf of the City for the sale of municipal obligations payable from the same revenue source as the issue(s) listed above, there will be no charge for providing the annual updating requirements that year. 2. The City of Hutchinson takes primary responsibility for annual reporting, but contracts with Ehlers and Associates on an hourly basis plus expenses to provide specific services. 3. The City of Hutchinson takes complete responsibility for annual reporting and submission to the repositories. Please give some thought to how you will proceed with complying with these new reporting requirements. Kenneth B. Merrill, Finance Director April 8, 1997 City of Hutchinson, Minnesota Page 3 Attached is a "Contract for Continuing Disclosure Services" detailing the above three options for services. Continuing disclosure is new to everyone in the public finance market. Therefore, we have stated the contract is effective only through December 31 of the year your first annual report is due. After we get through this first round of annual reporting, we will reevaluate the process, the fees, and the contract. Please sign and return one copy to our office in the enclosed return envelope. It is important we have a copy of all continuing disclosure contracts on file in our offices no matter which option you choose. Feel free to call us if you have any questions or comments on continuing disclosure or to further discuss how we may be of service to you in complying with these new regulations. Sincerely, EHLERS AND ASSOCIATES, INC. • Steve Apfelbacher N:WINNSOTAW UTCFMNALYST DISCLOSE\CONTRACr • Contract for Continuing Disclosure Services Through Fiscal Year Ending 12/31/97 To: City Council City of Hutchinson 1 I l Hassan Street Hutchinson, MN 56350 -2522 Re: $1,050,000 General Obligation Improvement Bonds, Series 1996 The following is a contract between Ehlers and Associates, Inc. and the City of Hutchinson (the "City ") to engage Ehlers and Associates, Inc. as Dissemination Agent to provide continuing disclosure services for the issue(s) listed above. A. Providing Annual Updated Financing and Operating Data Identified below are three options available to the City for providing your annual updated financing and • operating data as required by the Form of Continuing Disclosure Covenants that you entered into at the time of the closing for each of the above issue(s). Please select one of the three options and return one signed copy of this contract to our office in the enclosed envelope. Option 1 We contract with Ehlers and Associates, Inc. to provide the following services which are required in order to comply: a Create timetable for preparation of the Annual Report. b. Collect Annual Report information listed in the Form of Continuing Disclosure Covenants and prepare necessary reporting documents. c. Submit Annual Report as required in the Form of Continuing Disclosure Covenants. d. Provide consultation and assistance in reporting the material events listed in the Form of Continuing Disclosure Covenants. e. Provide recommendations for future reporting. The services above will be provided by Ehlers and Associates, Inc. for a fee not to exceed $1,250, plus out -of- pocket expenses, for [he period ending December 31, 1997. However, if in any tax collection year that Ehlers and Associates, Inc. prepares an Official Statement on behalf of the City for the sale of municipal obligations payable from the same revenue source as the issue(s) listed above, there will be no charge for providing the annual updating requirements for that year. There will be an additional charge of $200 to prepare Annual Reports for each issue that is paid from a different revenue source. 0 Option 2. We contract with Ehlers and Associates, Inc. on an hourly basis of $120/hour plus out -of- pocket expenses to provide those services requested by us which will assist us in complying with Continuous Disclosure. Option 3. We will update and submit the required information as required by the S.E.C. without the assistance of Ehlers and Associates, Inc. B. Reporting Occurrences of Material Events Regardless of which option you choose above for providing your annual reporting requirements, Ehlers is available to assist you with reporting the occurrence of a material event. If a material event occurs that is specifically listed in the Form of Continuing Disclosure Covenants or that is not listed but is deemed a ., material event" after review by the City and Ehlers and Associates, Ehlers will determine the complexity of the event, estimate the number of hours necessary to prepare and submit a "Notice of Material Event" according to S.E.C. requirements, and then estimate and negotiate a fee, if any, with you on an hourly basis. Fees for the above services provided by Ehlers and Associates will be billed on the first of each month following the rendering of such service. 0 This arrangement shall prevail through December 31, 1997, at which time such fees and reimbursements may be reviewed and adjusted to reflect changes in the range of services or cost of providing such services. Respectfully submitted, EHLERS AND ASSOCIATES, LAIC. Steve Apfelbacher The above proposal is hereby accepted by the City Council of the City of Hutchinson, Hutchinson, Minnesota, by its authorized officers this day of 1997. Attest: 0 Accepted by Ehlers and Associates, Inc. this day of , 1997. Um Title: N UnNNSOTAVHUTCrt\ANALYSTt DfSCLOSEICONTRACT ARNOLD. ANDERSON & DOVE PROFESSIONAL L KITED LIABILITY PARTNERSHIP u DAVID B. ARNOLD' STEVEN A. ANDERSON G_ BARRY ANDERSON LAURA K. FRETLAND = AULD_ COVE JUNE VAN 'VALKENBURG RICHARD G. MCGEE CATHRYN D. REHER WALTER P. MICHELS, III n l no M. TTEO IN TE x4 AN. n 1eRl Mr. Gary D. Plotz City Administrator Hutchinson City Center 111 Hassan Street S.E. Hutchinson, Mn. 55350 (320) 567-7 57 5 FAX (320) 587 -4096 RESIDENT ATTORNEY G. BARRY ANDERSON May 9, 1997 OF COUNSEL ARTHUR L. D07EN TERRI A. BLOMFELT 5881 CEDAR LAKE ROAD MINNEAPOLIS, MINNESOTA 55416 1612) 545 -9000 FAX (612) 545 -1793 FAX (612) 542 -9210 501 SOUTH FOURTH STREET PRINCETON, MINNESOTA 55371 16121 369-2214 FAX 1612)369 -5506 Re: Plastic Specialties /City of Hutchinson Our File No. 3244 -97106 Dear Gary: 0 This is just a short note advising you that we will need to have on the consent agenda for next Tuesday evening the development agreement p repared by Jerry Gilligan of the Dorsey & Whitney law firm. I presume you have a copy of the same. We also need to have on the consent agenda approval by the City Council for an arrangement by which the City will make an equipment loan to Plastic Specialties and will have as security inventory, accounts receivable, tools, equipment an a er acqu property. s security will be second to the position taken by Citizens Bank which is providing all of the lending. At this writing, there appears to be substantial doubt that the loan will actually be necessary but I would ask for City Council approval of the same. Incidentally, I spent a great deal of time at the closing and with bank officers and it appears that a second position on the assets described above does have some collateral potential unlike many of these transactions. If you need additional information or have questions regarding any of the foregoing, please feel free to contact me. Thank }'ou. Best regards. Very truly yours, ARNOLD p RSON & f)OV lPLLP v — � G. Barry derson GBA:Im • ATTORNEYS AT LAW X01 PARK PLACE HUTCHINSON. MINNESOTA 55350 -2563 * CERTIFIED AS A CIVIL TRIAL SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION "CERTIFIED AS A REAL PROPERTY LAW SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION 0 DEVELOPMENT AGREEMENT DEVELOPMENT DISTRICT NO. 4 (PLASTIC SPECIALTIES MANUFACTURING, INC.) CITY OF HUTCHINSON, MINNESOTA A * AND PLASTIC SPECIALTIES LLC May 2 . 1997 • TABLE OF CONTENTS Section 1.1 Definitions ................. ............................... Section 2.1 By City ..................... ............................... Section 2.2 By Developer ............... ............................... Section 3.1 Use ........................ ............................... Section 3.2 Declaration of Restrictions and Assessment Agent ............ Section 4.1 Construction Plans .......... ............................... Section 4.2 Construction of Minimum Improvements ................... Section 4.3 Certificate of Completion ................................... Section 5.1 Defense of Claims ........... ............................... • Section 5.2 Insurance .................. ............................... . Section 6.1 Reimbursement to Developer of Certain Costs ................ Section 6.2 Wage and Job Goals ......... ............................... Section 7.1 Transfer of Property and Assignment ........................ Section 7.2 Termination of Limitations on Transfer ...................... Section 8.1 Events of Default ........... ............................... . Section 8.2 Remedies on Default ........ ............................... Section 8.3 No Remedy Exclusive ............ . ........................ . Section 8.4 Waivers .................... ............................... Section 9.1 Conflict of Interests; City Representatives Not Individually Liable ...... ............................... Section 9.2 Equal Employment Opportunity ............................ . -i- • Section 9.3 Restrictions on Use .......... ............................... Section 9.4 Titles of Articles and Sections ............................... Section 9.5 Notices and Demands ...................................... Section 9.6 Term of Agreement ........................................ Section 9.7 Counterparts ............... ............................... Schedule A Development Property Schedule B Project Description Exhibit A Certificate of Completion Exhibit B Declaration of Restrictive Covenants Exhibit C Assessment Agreement Exhibit D Wage and Job Goats C� _11_ DEVELOPMENT AGREEMENT . This Agreement is made as of May 2 1997, by and between the CITY OF HUTCHINSON, MINNESOTA, a municipal corporation of the State of Minnesota (the "City"), and PLASTIC SPECIALTIES LLC, a Minnesota limited liability company (`Developer "). WITNESSETH: WHEREAS, the City has designated a development district in the City denominated Development District No. 4 (the "Development District ") and has approved a development program for the Development District (the "Development Program ") pursuant to and in accordance with Minnesota Statutes, Sections 469.124 to 469.134 (the "Act "); WHEREAS, the City has established a tax increment financing district designated as Tax Increment Financing District No. 12 (the "District ") within the Development District and authorized the financing of the Development Program pursuant to a Tax Increment Financing Plan For Tax Increment Financing District No. 12 (the "Financing Plan ") pursuant to and in accordance with Minnesota Statutes, Sections 469.174 through 469.179 (the "Tax Increment Financing Act "); WHEREAS, the City Council of the City (the "City Council ") has authorized and directed the officers of the City to take all actions necessary to implement and carry out the Development Program, subject only to such approval by the City Council as may be required by the Act; WHEREAS, the City has determined that it is necessary, in order to accomplish the purposes specified in and to carry out the Development Program, for the City to reimburse the Developer for certain costs to be paid by the Developer with respect to improvements to be constructed on the propertyTocated in McLeod Countv, Minnesota described in Exhibit A hereto (the "Development Property ") and to write down the cost of acquisition by the Developer of the Development Property; WHEREAS, the City is desirous of contracting with the Developer to improve the Development Property in accordance with the Development Program, as specified in this Agreement; and the Developer is desirous of contracting with the City for this purpose. NOW, THEREFORE, in consideration of the foregoing premises and the mutual obligations set forth in this Agreement, the parties hereto hereby agree as follows: • ARTICLE 1 Definitions Section 1.1. Definitions In this Agreement, unless a different meaning clearly appears from the context: "Act" means Minnesota Statutes, Sections 469.124 through 469.134. "Agreement" means this Agreement, as the same may be from time to time modified, amended or supplemented. "Assessment Agreement" means the Assessment Agreement, dated as of the date hereof, by and between the Developer and the City, the form of which is attached as Exhibit C hereto. "Certificate of Completion" means a certification in the form attached as Exhibit A, to be provided to Developer pursuant to this Agreement. "City" means the City of Hutchinson, Minnesota, a Minnesota municipal corporation. "City Council" means the City Council of the City. • "Construction Plans" means the plans, specifications, drawings and related documents for the construction work to be performed by the Developer on the Development Property as a part of the Project, which (a) shall be at least as detailed as the plans, specifications, drawings and related documents which are submitted to the building inspector of the City and (b) shall include at least the following: (1) site plan; (2) foundation plan; (3) basement plans (if any); (4) floor plan for each floor; (5) elevations on all sides; (6) landscape plan; (7) grading plan; and (8) utility plan. "Development Area" means the area included in the Development District. "Development District" means Development District No. 4 designated by the City under the Act. "Developer" means Plastics Specialties LLC, a Minnesota limited liability company. "Development Program" means the Development Program for the Development District. "Development Property" means the portion of the Development Area described on Schedule A attached hereto. • "Event of Default" means as set forth in Section 9.01 hereof. • "Improvements" means the buildings or other improvements located on the Development Property. "Mortgage" means any mortgage made by Developer which covers, in whole or in part, the Development Property. "Mortgagee" means the owner or holder of a Mortgage. "Net Proceeds" means any proceeds paid by an insurer to Developer and the City under a policy or policies of insurance required under Article 5 and remaining after deducting all expenses (including fees and disbursements of counsel) incurred in the collection of the proceeds. "Project" means the acquisition by the Developer of the Development Property and the construction of a concrete building containing a minimum of at least 15,000 square feet, and the construction of site improvements and other improvements of a public nature, all as further described in Schedule B attached to this Agreement. "Plans" means Developer's plans dated 1997 for the Project prepared by as submitted to the City, with any subsequent amendments approved by the City. Ask "Restrictions" means the Declaration of Restrictive Covenants set forth in Exhibit B. "Section" means a Section of this Agreement, unless used in reference to Minnesota Statutes. "State" means the State of Minnesota. "Tax Increment" means tax increment received by the City from the Tax Increment District which is attributable only to the ad valorem real estate taxes paid with respect to the Development Property. "Tax Increment Act" means Minnesota Statutes, Sections 469.174 through 469.179. "Tax Increment District" means Tax Increment Financing District No. 12 created by the City pursuant to the Tax Increment Financing Plan. "Tax Increment Financing Plan" means Tax Increment Financing Plan for Redevelopment Tax Increment Financing District No. 12, as amended. "Unavoidable Delay" means a failure or delay in a party's performance of its obligations under this Agreement, or during any cure period specified in this -3 • Agreement which does not entail the mere payment of money, not within the party's reasonable control, including but not limited to acts of God, governmental agencies, the other party, strikes, labor disputes (except disputes which could be resolved by using union labor), fire or other casualty, or lack of materials; provided that within 10 days after a party impaired by the delay has knowledge of the delay it shall give the other party notice of the delay and the estimated length of the delay, and shall give the other party notice of the actual length of the delay within 10 days after the cause of the delay has ceased to exist. The parties shall pursue with reasonable diligence the avoidance and removal of any such delay. Unavoidable Delay shall not extend performance of any obligation unless the notices required in this definition are given as herein required. ARTICLE 2 Representations and Warranties Developer: Section 2.1. By City City makes the following representations to (a) City is a Minnesota municipal corporation. Under the provisions of the Act, City has the power to enter into this Agreement and carry out its Obligations hereunder. • (b) The Development Project is located within the Development District and the Development Program for the Development District was adopted and approved in accordance with the terms of the Act. (c) The Tax Increment District is a "tax increment district" within the meaning of the Tax Increment Act and was created, adopted and approved in accordance with the terms of the Tax Increment Act. Section 2.2. By Developer Developer represents and warrants that: (a) Developer is a Minnesota limited liability company duly organized and existing under the laws of Minnesota and is in good standing under the laws of the State. The Developer has full corporate power and authority to execute and deliver this Agreement and this Agreement has been duly authorized, executed and delivered by the Corporation. (b) Developer will, subject to Unavoidable Delays, complete the Project in accordance with the terms of this Agreement, and all local, state and federal laws and regulations. • -4- (c) Developer has received no notice or communication from any • local, state or federal official that the activities of Developer or the City with respect to the Development Property may be or will be in violation of any environmental law or regulation. Developer is aware of no facts the existence of which would cause it to be in violation of any local, state or federal environmental law, regulation or review procedure with respect to the Development Property. (d) Neither the execution or 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 by, limited by, conflicts with, or results in a breach of, any restriction, agreement or instrument to which Developer is now a party or by which it is bound. (e) The Developer (i) is not in default in the payment of the principal of or interest on any indebtedness for borrowed money; or (ii) is not in default under any instrument or agreement under and subject to which any indebtedness for borrowed monev has been issued. (f) The Developer would not undertake the Project but for the tax increment financing assistance being provided by the City hereunder. (g) No member of the governing body of the City or any other officer of the City has any direct or indirect financial interest in the Developer, the • Development Property or the Project. ARTICLE 3 Use of Development Property: Restrictions and Assessment Agreement Section 3.1 Use Developer's use of the Development Property shall be subject to and in compliance with all of the conditions, covenants, restrictions and limitations imposed by this Agreement, the Restrictions and all applicable laves, ordinances and regulations. Section 3.2 Declaration of Restrictions and Assessment Agreement Developer shall prepare, execute, and record on the title to the Development Property a Declaration of Restrictive Covenants, substantially in the form set forth as Exhibit B, and an Assessment Agreement substantially in the form of Exhibit C hereto, and shall cause each existing Mortgagee to execute an appropriate instrument in form satisfactory to the City consenting to and agreeing to be bound by the Restrictions and Assessment Agreement in the event it becomes a record owner of all or a part of the Development Property. • . ARTICLE 4 Completion of Project and Construction of Public Improvements Section 4.1 Construction Plans Developer shall submit Construction Plans to the City prior to commencement of the construction of the Project. The Construction Plans shall provide for construction of the portion of. the Project consisting of construction in conformity with the Plans, this Agreement, and all applicable state and local laws and regulations. The City shall approve the Construction Plans in writing if no Event of Default has occurred and, in the reasonable discretion of the City, the Construction Plans: (a) substantially conform to the Plans and subsequent amendments approved by the City; (b) conform to the terms and conditions of this Agreement; (c) conform to all applicable federal, state and local laws, ordinances, rules and regulations; (d) are adequate to provide for construction of the portion of the Project consisting of construction; and (e) provide for minimum disturbance to neighboring properties during construction. No approval by the City shall relieve Developer of the obligation to comply with the terms of this Agreement, applicable federal, state and local laws, ordinances, rules and regulations, or to properly demolish the existing buildings or construct the Improvements. No approval by the City shall constitute a waiver of an Event of Default. Any disapproval of the Construction Plans shall set forth the reasons therefor, and shall be made within 30 days after the date of their receipt by • the City. If City rejects the Construction Plans, in whole or in part, Developer shall submit new or corrected Construction Plans within 30 days after written notification to Developer of the rejection. The provisions of this Section relating to approval, rejection and resubmission of corrected Construction Plans shall continue to apply until the Construction Plans have been approved by City. Section 4.2 Undertaking of Project (a) Subject to Unavoidable Delays, Developer will complete the Project all in accordance with the Plans and the Construction Plans on or before October 1, 1997. (b) All work with respect to the portion of the Project consisting of construction shall be in substantial conformity with the Construction Plans approved by the City. Developer shall promptly begin the Project and diligently prosecute the Project to completion. Developer shall make reports, in such detail and at such times as may reasonably be requested by the City, as to the actual progress of Developer with respect to the Project. (c) Developer shall not interfere with, or construct any improvements over, any public street or utility easement without the prior written approval of the City. All connections to public utilit lines and facilities shall be subject to approval 0 -6- of the City and any private utility company involved. Except for public • improvements which are assessable by the City or other governmental body against other benefitted properties, all street and utility installations, relocations, alterations and restorations shall be at Developer's expense and without expense to the City. Developer at its own expense shall replace any public facilities or utilities damaged during the Project by the Developer or its contractors. _ Section 4.3 Certificate of Completion (a) Promptly after completion of the Project in accordance with this Agreement, Developer will provide the City with a certificate of substantial completion from Developer's architect and the City will furnish Developer with an appropriate Certificate of Completion as conclusive evidence of satisfaction and termination of the agreements and covenants of this Agreement with respect to the obligations of Developer to complete the Project. The furnishing by the City of the Certificate of Completion shall not constitute evidence of compliance with or satisfaction of any obligation of Developer to any Mortgagee. (b) If the City shall refuse or fail to provide the Certificate of Completion, the City shall, within 15 days after the Developer provides the architect's certificate referenced in Section 4.3(a), provide Developer with a written statement specifying in what respects Developer has failed to complete the Project in accordance with this Agreement, or is otherwise in default, and what measures or • acts will be necessary, in the opinion of the City, for Developer to obtain the Certificate of Completion. ARTICLE 5 Defense of Claims; Insurance;. Condemnation Section 5.1 Defense of Claims Developer shall indemnify and hold harmless the City and their respective officers, employees and agents for any loss, damages and expenses (including attorneys' fees) in connection with any claims or proceedings arising from damages or injuries received or sustained by any person or property by reason of any actions or omissions of Developer or its contractors, agents, officers or employees or arising out of or relating to this Agreement or the transactions contemplated by this Agreement, other than claims or proceedings arising from any negligent or unlawful acts or omissions of the City or its contractors, agents, officers or employees. Promptly after receipt by the City of notice of the commencement of any action in respect of which indemnity may be sought against the Developer under this Section 5.1, such person will notify the Developer in writing of the commencement thereof, and, subject to the provisions hereinafter stated, the Developer shall assume the defense of such action (including the employment of counsel, who shall be counsel satisfactory to the Citv, and the -7- • payment of expenses) insofar as such action shall relate to any alleged liability in respect of which indemnity may be sought against the Developer. The City shall have the right to employ separate counsel in any such action and to participate in the defense thereof, but the fees and expenses of such counsel shall not be at the expense of the Developer unless the employment of such counsel has been specifically authorized by the Developer. The Developer shall not-be liable to indemnify any person for any settlement of any such action effected without its written consent. The omission to notify the Developer as herein provided will not relieve it from any liability which it may have to any indemnified party pursuant hereto, otherwise than under this section. Section 5.2 Insurance (a) The Developer shall keep and maintain the Development Property and Improvements at all times insured against such risks and in such amounts, with such deductible provisions, as are customary in connection with facilities of the type and size comparable to the Improvements, and the Developer shall carry and maintain, or cause to be carried and maintained, and pay or cause to be paid timely the premiums for direct damage insurance covering all risks of loss, including, but not limited to, the following: (1) fire . (2) extended coverage perils (3) vandalism and malicious mischief (4) boiler explosion (but only if steam boilers are present) (5) water damage (6) debris removal (7) collapse on a replacement cost basis in an amount equivalent to the full insurable value thereof. ( "Full insurable value" shall include the actual replacement cost of the Improvements (exclusive of foundations and footings) without deduction for architectural, engineering, legal or administrative fees or for depreciation.) Insurance in effect with respect to any portion of the Improvements to be renovated or remodeled as a part of the Project prior to the issuance by the City of a Completion Certificate under Section 4.3 hereof with respect thereto shall be maintained on an "all- risk" builder's risk basis during the course of construction. The policies required by this Section 5.2 shall be subject to a no coinsurance clause or contain an agreed amount clause, and may contain a deductibility provision not exceeding $25,000. (b) Policies of insurance required by this Section 5.2 shall assure and be payable to the Developer, and shall provide for release of insurance proceeds to the Developer for restoration of loss. The Cit�r shall be furnished certificates showing 0 -8- the existence of such insurance. In case of loss, the Developer is hereby authorized • to adjust the loss and execute proof thereof in the name of all parties in interest. The Developer shall annually file with the City a schedule describing all such policies in force, including the tvpes of insurance, names of insurers, policy numbers, effective dates, terms of duration or any other information the City deems pertinent. Such list shall be accompanied by a certificate executed by the Developer stating that, to the best of the knowledge of the Developer, insurance on the Improvements then in force complies with this Section 5.2. ARTICLE 6 Reimbursement to Developer from Tax Increment Section 6.1 Reimbursement to Develoi2er of Certain Costs In order to reimburse the Developer for land preparation costs paid by the Developer with respect to the Project, the City agrees to pay to the Developer $32,000 upon submission to the City of evidence satisfactory to the City that such land preparation has been completed by the Developer. The Developer shall furnish to the City Finance Director written evidence in a form satisfactory to the City Finance Director of the land preparation costs paid or incurred by the Developer with respect to the Development Property. To the extent that such costs are less than $32,000, the aggregate amount to be paid by the City to the Developer hereunder shall be reduced to the actual amount of such costs. In addition, the Developer acknowledges that the City has sold to the Developer the Development Property for a price that is $79,056 less than the sum of the value thereof and the special assessments levied upon the Development Property and interest thereon. The City intends to recoup all or a portion of such writedown of the cost of the Development Property together with the amount paid to the Developer for land preparation costs from Tax Increment from the District received by the City. Section 6.2. Wage and lob Goals The Developer agrees that within two years of the date of the payment by the City to the Developer under Section 6.1 hereof, the location of the Improvements on the Development Property will result in a net increase in jobs in the State of Minnesota. In order to satisfy the requirements of Minnesota Statutes, Section 116J.991, the Developer and the City have established wage and job goals with respect to the Improvements as described in Exhibit D hereto. If such wage and job goals are not met the Developer agrees to repay to the City all amounts paid by the City to the Developer under Section 6.1 hereof, together with the land tA, , ritedown amount of $79,056 referred to in Section 6.1. In order for the City to make the annual report to the Minnesota Department of -9- • Trade and Economic Development required by Minnesota Statutes, Section 116J.991, the Developer shall report to the City on or before March 1 of each year, commencing March 1, 1998, the number of new jobs within the City provided by the Improvements and the wages for such jobs in the preceding calendar year. ARTICLE 7 Prohibitions Against Assignment and Transfer Section 7.1 Transfer of Property and Assignment Developer has not made and will not make, or suffer to be made, any total or partial sale, assignment, conveyance, lease, mortgage, encumbrance, lien or other transfer, with respect to this Agreement or the Development Property or any part thereof or any interest therein, or any contract or agreement to do any of the same, other than the mortgage of the Development Property to secure the Developer's financing of the costs of the Project, without the prior written approval of the City. The City shall be entitled to require as conditions to any such approval that: (i) the proposed transferee have the qualifications and financial responsibility, as reasonably determined by the City, necessary and adequate to fulfill the obligations undertaken in this Agreement by Developer; (ii) the proposed transferee, by recordable instrument satisfactory to the City shall, for itself and its successors and assigns, assume all of the obligations of Developer under this Agreement. No transfer of, or change with respect to, ownership in the Development Property or any part thereof, or any interest therein, however consummated or occurring and whether voluntary or involuntary, shall operate, legally or practically, to deprive or limit the City of or with respect to any rights or remedies or controls provided in or resulting from this Agreement with respect to the Development Property and the completion of the Project that the City would have had, had there been no such transfer or change. There shall be submitted to the City for review all legal documents relating to the transfer. In the absence of specific written agreement by the City to the contrary, no such transfer or approval by the City thereof shall be deemed to relieve Developer, or any other party bound in any way by this Agreement or otherwise with respect to the completion of the Project, from any of its obligations with respect thereto. 7.2 Termination of Limitations on Transfer The provisions of Section 7.1 shall terminate at such time as the Certificate of Completion has been issued by the City under Section 4.3 of this Agreement with respect to the Project. • -i0- ARTICLE 8 Events of Default Section 8.1 Events of Default The following shall be "Events of Default' under this Agreement and the term "Event of Default" shall mean, whenever it is used in this Agreement (unless the context otherwise provides), any one or more of the following events (and the term "default" shall mean any event which would with the passage of time or giving of notice, or both, be an "Event of Default" hereunder): (a) Failure of Developer to complete the Project as required hereunder. (b) Failure of Developer to furnish the Construction Plans as required hereunder. (c) If the Developer shall fail to observe and perform any other covenant, condition, obligation or agreement on his part to be observed or performed hereunder or under the Restrictions and such failure shall continue for more than 30 days after written notice of such failure is given by the City to the Developer. (d) If prior to the issuance of the Certificate of Completion under Section 4.3 hereof, Developer shall admit in writing his inability to pay its debts generally as they become due, or shall file a petition in bankruptcy, or shall make an assignment for the benefit of his creditors, or shall consent to the appointment of a receiver of itself or of the whole or any substantial part of the Development Property. Section 8.2 Remedies on Default Whenever any Event of Default referred to in Section 8.1 occurs, the City may take any one or more of the following actions: (a) Suspend its performance under this Agreement until it receives assurances from Developer, deemed adequate by the City, that Developer will cure its default and continue its performance under this Agreement. (b) Terminate all rights of Developer under this Agreement. (c) Withhold the Certificate of Completion. (d) Take whatever action at law or in equity may appear necessary or desirable to the City to enforce performance and observance of any obligation, agreement, or covenant of the Developer under this Agreement. -11- • Section 8.3. 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. In order to entitle the City or Developer to exercise any remedy reserved to it, it shall not be necessary to give notice, other than such notice as may be required under this Agreement. Section 8.4. Waivers All waivers by the City, shall be in writing. If any provision of this Agreement is breached by either party and thereafter waived by the other party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other concurrent, previous or subsequent breach hereunder. ARTICLE 9 Additional Provisions Section 9.1 Conflict of Interests: City Renresentativ • Liable No member, official, employee, or consultant or employees of the consultants of the City shall have any personal interest, direct or indirect, in this Agreement, nor shall any such member, official, consultant or the consultant's employees or employee participate in any decision relating to this Agreement which affects his or her personal interests or the interests of any corporation, partnership, or association in which he or she is directly or indirectly interested. No member, official, consultant or the consultant's employees, or employee of the City shall be personally liable to Developer, or any successor in interest, in the event of any default or breach by the City or for any amount which may become due to Developer or successor or on any obligations under the terms of this Agreement. Section 9.2 Equal Employment Opportunity Developer, for itself and its successors and assigns, agrees that during the construction of the Project it will comply with any applicable affirmative action and nondiscrimination laws or regulations. Section 9.3 Restrictions on Use Developer agrees for itself, and its successors and assigns, and every successor in interest to the Development Property, or any part thereof, that Developer, and such successors and assigns, shall devote the Development Property to, and only to and in accordance with, the uses specified in this Agreement, and shall not discriminate upon the basis of race, color, creed, sex or national origin in the sale, lease, or rental or in the use or occupancy of the • -12- Development Property or any improvements erected or to be erected thereon, or any • part thereof. Section 9.4 Titles of Articles and Sections Any titles of the several parts, Articles, and Sections of this Agreement are inserted for convenience of reference only and shall be disregarded in construing or interpreting any of its provisions. Section 9.5 Notices and Demands Except as otherwise expressly provided in this Agreement, a notice, demand, or other communication under this Agreement by either party to the other shall be sufficiently given or delivered if it is dispatched by registered or certified mail, postage prepaid, return receipt requested, or delivered personally as follows: (a) in the case of Developer, addressed to or delivered personally to Developer at Plastic Specialties LLC ,120 East ate Drive S.E., Hutchinson, Mn Attention: S teve Bruns (b) in the case of the City addressed or delivered personally to the City Administrator at City Center, 111 Hassan Street SE, Hutchinson, Minnesota 55350; 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 party as provided in this • Section. Section 9.6 Term of Agreement This Agreement shall terminate upon the termination of the Tax Increment District in accordance with the Tax Increment Act. Section 9.7. Counterparts This Agreement is executed in any number of counterparts, each of which shall constitute one and the same instrument. -13- . IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed as of the date first above written. CITY OF HUTCHINSON, MINNESOTA By Its savor By Its City Adm trator PLASTICS SPECIALTIES LLC M 0 Ci -14- STATE OF MINNESOTA ) ) SS COUNTY OF M�T.FOD ) The foregoing instrument was acknowledged before me this 2 d day of Maw 1997, by the Mayor and the City Administrator of the City of Hutchinson Minnesota a Minnesota munic: 4 A9% = RAUFLER NNEWTA WD PM 1-31 .= 15- 0 • . STATE OF MINNESOTA ) SS COUNTY OF M-q ) The foregoing ins ument was acknowledged before me this 2nd day of M 1997, by the of Plastic Specialties LLC, a Minnesota limited liability company. resrez �' Notary Public DRAFTED BY: Dorsev & Whitney LLP (JPG) Pillsbury Center South 220 South Sixth Street Minneapolis, Minnesota 55402 • -16- SCHEDULE A • DEVELOPMENT PROPERTY Lot 2, Block 1, Second Addition to Hutchinson Industrial District according to the plat thereof recorded on March 24, 1994 as Document No. 19923 on file and of record in the office of the Registrar of Titles, McLeod County, Minnesota. Subject to drainage and utility easements as shown on the plat of record. i A_ I 0 SCHEDULE B 1.0 General 0 Products 2.1 Materi:la 2.1.1 Ali ands anrtMr joists and cccmwries shall be me& of die type, six, tauge and spacing shown rain tiid drawings. and shall be manufactured by Unimast Inedrporakd. 2.1.2 All strucnunl members shall be designed ini seeordarice with American Iro.t cx? Steel Imthute (AISI) "SpecifseaGon for the Design of Cold- Formed Steel Structural Members;' 1996 edition. 2.1.3 All structural members shall be fanned from corrosion - resistant steel, corresponding to the requirements of ASTM A446. Grade C (Grade DXGade A), with a minimum yield strength of 40 ksi (50 ksix33ksi) for SJ studs and Grade A. 33 Lsi, for CR runners. 2:1.4 All structural members shall be zinc coated meeting ASTM AM. GfiO, or equiva- lent. _ 3.0 F.xecullon 3.1 Fabrication 3.1.1 Prior to fabrication of framing, the con- tractor ahall submit fabrication and erection drawings to the architect or engineer to obtain Approval. Prefabri panels stall be square. n ansehed in a manner to prevent racking and io.minimize distortion while liming and transporting. 3.1.3 All framing components shall be cot squarely for attachment to perpendicular members or. as required, for an angular fit against abutting members. 3.1.4 All framing components shall he plumbed. aligned and leveled. 3.1.5 In all doubled jamb studs and doubled headers not accessible to insulation contractors. insulation equal to that specified elsewhere shall be provided. 3.1.6 Fastening of components shall be with self -drilling screws or welding. Screws and welds shall be or sufficient size to ensure the strength of the conneciinn. Wire tying n( components shall nut be permitted. All welds shall be toughed -up with i :r::c -rkis paint. 3.1.7 Splice_ in framing mniponrnts, other than runner tnsck, shall not be pe- mitted. 3.1.9 Abutting length; of runner shall be bun - , welded, spiiced or each len�ih securely an- chored-in aLcommon struetmal element. Rsmnrm%hall.be securely anchored to the eapponing„ structure, as rd wn on the drawings. 3.1.9 . Terrgsoray'b .acing, where rcqufred. pIV ro vided until errctim is cumple,c > 3.2 ' - IrnstallNloa Innis -fond bearing curtain walla) 3.2A Studs shall be secured to c8atirwdrss . ryruuer tracks unless the attd end scrminates ar deflection mach. 33r Irmallarion of curtain wait framing std&U - peoomodata vertical displacement of ( 1 of the primary frame. This shalt include slide clips and deflection slip tracks as shown on the;- drawings. ).2.3 Frsming of wall openings shall include `readers and jambs as shown on t drawings. M fnaWlallon (axial load bearing walk) 3.3.1 Axially loaded studs shall be installed so *4 ends are positioned against the Inside of die tunnrsr track web prior to fastening and shall he snatched to both flanges of the upper and lower runner tracks. 3.3.2 Complete, uniform and level bearing support shall be provided for the bottom runner. 3.3.3 Framing of wall openings shall include headers and supporting studs as shown on the drawings. 3.3.4 Resistance to bending and rotation about the minor uis shall be provided by horizontal strap rani Mocking or cold -rolled channel brcing as shown m the drawings. 33.5 Diago bared stud waifs. a Indi- .zW on the drawings, droll be provided at ,nationi dedgnamed as "sheer walls" for frame stability and Weal load resistance. Additional studs when necessary. shall be positioed as indicated on the drawings and adequately w- Cached to the structure to resist the vertical components of the loads. 3.4 Installation (Jolts) 3.4.1 Uniform and level joist bearing shall be provided at the foundation walls by means of shims and/or non - sealing grout 3.4.2 Joists shall be loured directly over bearing studs. or a load distribution member shall be provided at the top of the bearing Mall. 3.4.3 Web stiffeners shall be provided at reac- tion points and/or at points of concentrated loads where indicated on the drawings. 3.4.4 Joist bridging shall be provided where indicated on the drawings. 3.45 Additional j�isu shall be provided nsder parallel partitions when the ; Rnition length exceeds one -half the joist span, and around all rkar and roof openings which interrupt one m snore spanning members, unless otherwise nosed. 3.4.6 End blocking shall be provided where joist ends arc not nherwise mstr fined from -, riotation. EXHIBIT A CERTIFICATE OF COMPLETION WHEREAS, Plastic Specialties LLC ( "Owner ") is the owner of the property in the County of McLeod and State of Minnesota described on Exhibit 1 attached hereto and made a part hereof ( "Property "); and WHEREAS, the Property is subject to the provisions of a certain Development Agreement (the "Agreement ") dated May 2 1997 by and between Owner and the City of Hutchinson, Minnesota (the "City "); and WHEREAS, Owner has fully and duly performed all of the covenants and conditions of Owner under the Agreement with respect to the completion of the Project (as defined in the Agreement); A NOW, THEREFORE, it is hereby certified that all requirements of Owner under the Agreement with respect to the completion of the Project have been completed and duly and fully performed, and this instrument is to be conclusive evidence of the satisfactory termination of the covenants and conditions of the Agreement as they relate to the completion of the Project. All other covenants and conditions of the Agreement shall remain in effect and are not terminated hereby. Dated this?ndiay of May 1997. CITY OF HUTCHINSON, MINNESOTA By / — Its ayor By Its City Ad trator A -1 STATE OF MINNESOTA ) SS COUNTY OF mr.T,Fnp _ ) The foregoing instrument was acknowledged before me this 2nd day of rT 1 1993 by Marlin TnrR rcnn Mayorand (dnry T) Plnt7. City Administrator of the City of Hutchinson, Minnesota. Notary Pub11 This Instrument Was Drafted By: DORSEY & WHITNEY LLP UPG) Pillsbury Center South 220 South Sixth Street Minneapolis, Minnesota 55402 "av a sc++auFLM NOTARY Rl&1frAYMNESOTA MY OGMa995tJH EXPWES 1-31PjW i is • A -2 DECLARATION OF RESTRICTIVE COVENANTS This Declaration is made and executed as of the 2n day of May, 1997, by Plastic Specialties LLC, a Minnesota limited liability company ( "Declarant''). Recitals A. Declarant is fee owner of the following described premises located in the County of McLeod, State of Minnesota (the "Property"): Lot 2, Block 1, Second Addition to Hutchinson Industrial District according to the plat thereof recorded on March 24, 1994 as Document No. 19923 on file and of record in the office of the Registrar of Titles, McLeod County, Minnesota. Subject to drainage and utility easements as shown on the plat of record. 0 B. The City of Hutchinson, Mmnesota ( "City") has entered into a Development Agreement, dated May 2, 1997, (the 'Development Agreement'), with the Declarant. The Development Agreement provides for certain aid and assistance to be provided by the City in connection with the acquisition by the Declarant of the Property and the construction by the Declarant of a manufacturing facility on the Property. . C. Section 3.2 of the Development Agreement provides for this Declaration to be executed by Declarant and for this Declaration to be filed of record in the real estate records. NOW, THEREFORE, in consideration of the foregoing and in compliance with its obligations under Section 3.2 of the Development Agreement, Declarant, for itself, and its successors and assigns, does hereby declare that the Property shall be owned, used, occupied, sold and conveyed subject to the following covenants and restrictions: — 1. The Property shall not be exempt from real estate taxes notwithstanding the ownership or use of the Property. 2. No more than 15% of the square footage of the facility to be constructed by the Declarant on the Property shall be used for a purpose other than manufacturing or production of tangible personal property or the warehousing, storage and distribution of tangible personal property excluding retail sales. 3. The covenants and restrictions herein contained shall run with the title to the Property and shall be binding upon all present and future owners and occupants of the Property; provided, however, that the covenants and restrictions herein contained shall insure only to the benefit of the 10 • City, and my be released or waived in whole or in part at any time, and from time to time, by the sole act of the City, and variances may be granted to the covenants and restrictions herein contained by the sole act of the City. These covenants and restrictions shall be enforceable only by the City, and only the City shall have the right to sue for and obtain an injunction, prohibitive or mandatory, to prevent the breach of the covenants and restrictions herein contained, or to enforce the performance or observance thereof. 4. The covenants and restrictions herein contained shall remain in effect until April 1, 2008 and thereafter shall be null and void. 5. If any one or more of the covenants or restrictions contained in this Declaration are held to be invalid or enforceable, the same shall in no way affect any of the other provisions of this Declaration, which shall remain in full force and effect. SPECIALTIES LLC • STATE OF MINNESOTA) ) SS. COUNTY OF McLeod 1 The foregoing instrument was ac owledged before me this 2n day of May, 1997, by the of Plastic Specialties L C, a Minnesota limited liability company. IT ary Public_ DRAFTED BY Dorsey & Whitney LLP (TPG) Pillsbury Center South 220 South Sixth Street Minneapolis, Mn. 55402 AEN MARY s. sc+uu� WTAW ow woo; my camasum I W, 0 B -2 0 0 • ASSESSMENT AGREEMENT DATED AS OF May 2 1997 BETWEEN CITY OF HUTCHINSON, MINNESOTA, 0091 PLASTIC SPECIALTIES LLC F.Mi97 CERTIFICATE OF THE MCLEOD COUNTY ASSESSOR This Document was Drafted By: DORSEY & WHITNEY LLP Pillsbury Center South 220 South Sixth Street Minneapolis, Minnesota 55402 a— T ASSESSMENT AGREEMENT • THIS AGREEMENT is dated as of the 2nd day of May 1997 and is between the City of Hutchinson, Minnesota, a municipal corporation organized under the laws of the State of Minnesota (the City), and - Plastic Specialties LLC, a Minnesota limited liability company (the Developer); IN CONSIDERATION OF the mutual covenants and benefits herein described, the City and the Developer recite and agree as follows: Section 1. Recitals 1.01. Designation of Development District and Adoption of Development Program The City has designated a development district in the City denominated Development District No. 4 (the Development District) and has approved a development program for the Development District (the Development Program) pursuant to and in accordance with Minnesota Statutes, Sections 469.124 to 469.134 (the Act). 1.02. Creation of the District The City has established a tax increment financing district designated as Tax Increment Financing District No. 12 (the District) within the Development District and authorized the financing of the Development • Program pursuant to a Tax Increment Financing Plan for Tax Increment Financing District No. 12 (the Financing Plan) pursuant to and in accordance with Minnesota Statutes, Sections 469.174 through 469.179 (the Tax Increment Financing Act). 1.03. Implementation The City Council of the City has authorized and directed the officers of the City to take all actions necessary to implement and carry out the Development Program, subject only to such approval by the City Council as may be required by the Act. The Development Program proposes that the City use Tax Increment from the District to reimburse it for the capital and administrative costs of the Development District paid by the City. 1.04. Improvement of Property The City has determined that it is necessary, in order to accomplish the purposes specified in and to carry out the Development Program, for the City to reimburse the Developer for the cost of acquisition of certain property owned by it located in McLeod County, Minnesota described in Exhibit A hereto (the Land) and for other costs incurred by it in the development of the Land. 1.05. Development Agreement The City and the Developer have entered into a Development Agreement, dated as of Ma T 1997 (the Development Agreement), which provides that the Developer will improve the Land by the construction of a manufacturing facility thereon (the Facilities). The Development Agreement provides that upon the execution and delivery of the • Development Agreement, the City and Developer are to enter into this Assessment Agreement. Section 2. Minimum Market Value 2.01. Agreed Upon Minimums The Developer agrees that the minimum market value of the Land and the completed Facilities for ad valorem tax purposes, commencing with the assessment made as of January 2, 1998, shall be $ 598 .585 and shall not be reduced by any action taken by the Developer (other than a deed in lieu of, or under threat of, condemnation by the City or other condemning authority), to less than the said amount of $ 598,585 and that during said period no reduction of the market value therefor below said minimum market value shall be sought by the Developer or granted by any public official or Court except in accordance with Minnesota Statutes, Section 469.177, subdivision 8. This minimum market value shall apply only to the Land and facilities situated on the Land. In event of involuntary conversion of the Land for any reason, the minimum market value shall not be reduced to an amount less than S 598 , 585 2.02. Higher Market Value Nothing in this Assessment Agreement shall limit the discretion of the County Assessor of McLeod County (the Assessor) or any other public official or body having the duty to determine the market value of the Land and the facilities for ad valorem taz purposes, to assign to the Land and the facilities, or to any other improvements constructed on the Land or on the premises described in Exhibit A, on a nondiscriminatory basis and treated fairly and equally with all other property so classified in McLeod County, a market value in excess of the minimum market value specified in Section 2.01. The Developer shall have the normal remedies available under the law to contest any estimated assessors estimated market value in excess of $ 598 , 585 2.03. Substantial Completion For purposes of this Assessment Agreement and the determination of the market value of the Land and the completed Facilities for ad valorem tax purposes, the Developer agrees that the Facilities shall be deemed to be completed in accordance with the Development Agreement as of January 2, 1998, whether in fact completed or not. Section 3. Filing and Certification 3.01. Assessor Certification The City shall present this Assessment Agreement to the Assessor and request him to execute the certification of the Assessor contained hereon. The Developer shall provide to the Assessor all information relating to the Land and the Facilities requested by him for the purposes of discharging his duties with respect to the certification. 0 -2- 3.02. Filing. Prior to the recording of any mortgage, security agreement • or other instrument creating a lien on the Land and in any event not less than 30 days after the execution of this Assessment Agreement, the Developer shall cause this Assessment Agreement to be recorded in the office of the County Recorder of McLeod County, or with the Registrar of Titles, McLeod County, Minnesota, if the title to the Land is registered. Section 4. Relation to Development Agreement The covenants and agreements made by the Developer in this Assessment Agreement are separate from and in addition to the covenants and agreements made by the Developer in the Development Agreement; nothing contained herein shall in any way alter, diminish or supersede the duties and obligations of the Developer under the Development Agreement. Section 5. Miscellaneous Provisions 5.01. Binding Effect This Assessment Agreement shall inure to the benefit of and shall be binding upon the City and the Developer and their respective successors and assigns, and upon all subsequent owners of the Land and the Facilities. 5.02. SS vg arability In the event any provision of this Assessment Agreement shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof. 5.03. Amen dments Changes and Modifications Except as provided in Section 5.04 this Assessment Agreement may be amended or any of its terms modified only by written amendment authorized and executed by the City and the Developer. — 5.04. Further Assurances and Corrective Instrume The City and the Developer agree that they will, from time to time, execute, acknowledge and deliver, or cause to be executed, acknowledged or delivered, such supplements hereto and such further instruments as may reasonably be required for correcting any inadequate or incorrect description of the Land or the Facilities, or for carrying out the expressed intention of this Assessment Agreement. 5.05. Execution Counterparts This Assessment Agreement may be simultaneously executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. -3- . 5.06. Applicable Law This Assessment Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota. 5.07. Cal2tions. The captions or headings in this Assessment Agreement are for convenience only and in no way define, limit or describe the scope or intent of any provisions or Sections of this Assessment Agreement. 5.08. Effective Date This Assessment Agreement shall be effective as of the date hereof. 5.09. Termination Date This Assessment Agreement shall terminate upon the termination of the District in accordance with Minnesota Statutes, Section 469.176, subdivision 1. IN WITNESS WHEREOF, the City has caused this Assessment Agreement to be executed in its corporate name by its duly authorized officers; and the Developer has caused this Assessment Agreement to be executed in its corporate name by its duly authorized officer. CITY OF HUTCHINSON, MINNESOTA • -4- By * Attes Citt dministra or PLASTIC SPECIALTIES LLC STATE OF MINNESOTA ) ) ss. COUNTY OF � ) The foregoing instrument as acknowledged before me this -? day of 1997 by /�(- /°" m the Mayor, and Q the City Administrator for the City of Hutchinson, M esota, a municipal corporation, on behalf of the corporation. I\Iotary P STATE OF MINNESOTA ) MARY B. B CHAUR.ER ss. NOTARY n/R 8"In 1-U COUNTY OF ) W s � P The fore oing j trument as acknowledged before m this day f 1997 by ��/ - fztrP �it�•_...� , the of PI c Specialties LLC, a Minnesota limited liability company. Notary Public MARY B. SCHAUFLER NOTARY C SION E) V MESOTA NY WAIL4510N F�IFB 131•iD]0 -5- 0 • CERTIFICATE BY COUNTY ASSESSOR The undersigned, having reviewed the plans and specifications for the improvements located on the Land and the market value assigned to the Land upon which the improvements are to be constructed, and being of the opinion that the minimum market value contained in the foregoing Agreement appears reasonable, hereby certifies as follows: The undersigned Assessor, being legally responsible for the assessment of the above described property hereby certifies that the market value assigned to such land and upon completion of the improvements to be constructed thereon shall be $ beginning January 2, 1998 and thereafter. County Assessor for McLeod County STATE OF MINNESOTA ) ss. COUNTY OF ) This instrument was acknowledged before me this _ day of 1997 by the County Assessor of McLeod County. Notary Public 0 -6- E -'Y=rr "A" • DESCRIPTION OF LAND Lot 2, Block 1, Second Addition to Hutchinson Industrial District according to the plat thereof recorded on March 24, 1994 as Document No. 19923 on file and of record in the office of the Registrar of Titles, McLeod County, Minnesota. — Subject to drainage and utility easements as shown on the plat of record. 46 A -1 • EXHIBIT D The location of the Improvements on the Development Property will result in a net increase in the number of jobs within the City. The Improvements will provide a minimum of 10 new jobs within the City by December 31, 1998. The new jobs created will meet or exceed industry standards regarding wage levels for such job. These wage and job goals shall apply for the life of the Tax Increment District. 0 D -1 PUBLISHED IN THE HUTCHINSON LEADER TUESDAY, APRIL 29, 1997 • PUBLICATION N0. 5027 NOTICE OF PUBLIC HEARING ON PROPOSED AMENDMENTS TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 4 AND THE TAX INCREMENT FINANCING PLANS FOR TAX 1NCREMENf DISTRICT NOS. 4, 5 AND 6 CITY OF HUICHINSON, MINNESOTA NOTICE IS HEREBY GIVEN that the City Council of the City of Hutchinson (the "City") will hold a public hearing on proposed amendments (the "Amendments ") to The Development Program (the "Program ") for Development District No. 4 of the City (the "Development District ") and the Tax Increment Financing Plans for Tax Increment District Nos. 4, 5 and 6 (the "Tax Increment Districts ") at 6:00 p.m. on Tuesday, May 13,1997, in the Council Chambers at the Hutchinson City Center, Hutchinson, Minnesota. The Districts are included in the Development District. The Amendments modify the budgets of the Program and Tax Increment Financing Plans of the Districts. • Accompanying this notice is a map showing the area proposed to be included in the Districts which is the area from which tax increments from the Districts may be collected, and a map showing the area included in the Development District, which is the area in which tax increments from the Districts may be expended. All who wish to be heard as to the Amendments will be given an opportunity to express their views at the time of the public hearing or may file written comments with the City Administrator prior to the public hearing- Dated: April 24, 1997 By -----L&1 Cry I2 Plotz City Administrator U i� ♦ ii ii.. ii ii -� ►N - ii ■ i ii i� i � ii ■ ii i ii ii ii.ii ii ii ii ii ii \ 1 ii ii E mm mm m mm 0 0 • • Ehlers and Associates, Inc. LEA a EAS IN PU8 LIC `I NANCE May 9, 1997 Gary Plots City Administrator Ill Hassan St. SE Hutchinson, hIN 55350 -2522 Ken Merrill Finance Director 11 I Hassan St. SE Hutchinson, MN 55350 -2522 Re: Budget Amendments for Tax Increment District Nos. 4, Sand 6 We have been working with You and Jerry Gilligan on the preparation of the budget amendment for TID Nos. a. 5 and 6. Our objective is to provide for the continued payment of all of the three remaining general obligation debt issues and provide the City with maximum flexibility to the use of funds within these Districts. We believe this is extremely importanE given more restrictive requirements on new tax increment districts and the experiences other communities have had with reviews by the State Auditer'g office. • As you are aware, TID Nos. 4 and 5 are TIF Districts that allow TIF revenues within TID Nos. 4 and 5 to be used to assist in the payment of any project costs within Development District No. 4. Current law restrictions don't allow other districts this same option. Therefore we recommend providing for the continued use of revenues from TID No. 4 for previous projects found in TID Nos. 5 and 6 by incorporating the amended budgets in TID Nos. 5 and 6 into the amended budget for TID No. 4. This results in a double counting of expenditures or what appears to be an inflation of the budget numbers. These budget changes will provide the City with maximum flexibility for the use of tax increment funds. It should also be pointed out that none of the future expenditums for new projects could be made without public nodfication, discussion, and action by the City Council. We look forward to reviewing this in more detail ar the Council meeting Very truly yours, • OFFICES IN MINNEAPOLIS, MN AND BROOKFIELD, WI 2950 Norwest Center. 90 South Seventh Street. Vinneapotis, MN 55402 -41DO - elephone 612- 339.8291. FAX 612. 339 -0854 ij � I U Draft as ot,Nav 9. 1997 Draft for City Council Approval MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO.4 AND THE MODIFICATION TO THE TAX INCREMENT FINANCING PLANS FOR TAX INCREMENT FINANCING DISTRICTS NOS. 4,5 AND 6 City of Hutchinson County of McLeod State of Minnesota Public Hearing on Modifications: Mav_ 13.1997 Modifications Adopted: Prepared by: EHLERS AND ASSOCIATES. INC. 2950 Norwest Building 90 South Seventh Street Minneapolis, Minnesota 55402 -4100 (612) 339 -8291 Fax (612) 339 -0854 • MUNICIPAL ACTION TAKEN (for reference purposes onN) May 1980: The Development Program for Development District No. 4 was adopted by the City Council. April 24, 1990: The Development Program for Development District No. 4 was modified by the City Council to expand the area: December 30. 1991 The Development Program for Development District No. 4 was modified by the City Council to create Tax Increment Financing District No. 6. May 13,1997: The Development Program for Development District No.4 was modified to expand the boundaries and revise the budget and project costs. The following municipal action was taken with regard to the Tax Increment Financing Districts located within Development District No. 4 Tax increment Financin¢ District No. 4: May 1980: The Tax Increment Financing Plan for Tax Increment Financing District No. 4 was adopted by the City Council. Atrri124. 1990: The Development Program for Development District No. 4 was modified by the City Counal to complete development. May 13. 1997 The Tax Increment Financing Plan for Tax Increment Financing District No. 4 was modified by the City Council to revise the budget and project costs. April 18. 1990: The Tax Increment Financing Plan for Tax Increment Financing District No. 5 was adopted by the City Council. May 13, 1997 The Tax Inclement Financing Plan for Tax Increment Financing District No. 5 was modified by the City Council to revise the budget and project costs. Tax Increment Financing District No. 6: December 30. 1991 The Tax Increment Financing Plan for Tax Increment Financing District No. 6 was adopted by the City Council. May 13, 1997 The Tax increment Financing Plan for Tax Increment Financing District No. 6 was modified by the City Council to revise the budget and project costs. Modification to the Devclopmait Progmin for Development District No. 4 1 -I 0 MAY 09 '97 11:55PM EHLEPS a ASSOCIATES • City of Hutchinson, Minnesota Modification to the Development Program for Development District No 4 May 13. 1997 Background P.6 %11 This document was prepared to modify the Development Program that was adopted by the City Council in May. 1980 and modified on April 24, 1990 and December 30, 1991. The changes herein are intended to supplement the existing Development Program and modifications already on file with the City of Hutchinson. Introduction to Mav 13 1997 Mochfications The following text represents a modification to the Development Program for the Development District No. 4 ( "Development District No. 4"). Generally, the substantive changes include budget modifications to the Tax increment Financing Plans for Tax Increment Financing Districts Nos. 4, 5 and 6 and the addition of Tax Increment Financing District No. 13 (an economic development district) . For further information, a review of the Development Program for Development District No. 4, adopted May, • 1980 and modified on April 24, 1990 and December 30, 1991; the Tax Increment Financing Plan for Tax Increment Financing District No. 4, adopted May 1980 and modified on April 24, 1990; the Tax Increment Financing Plan for Tax Increment Financing District No. 5 adopted April, 18, 1990, and the Tax Increment Financing Plan for Tax Increment Financing District No. 6 adopted December 30, 1991, is recommended. They are available from the City Administrator's office of the City of Hutchinson. Estimated Public Costs The modifications to the estimated costs of the public improvements to be made within Development District No. 4 and financed by tax increments derived from the Tax Increment Financing Districts within Development District No. 4 are described in each respective Tax Increment Financing Plan. Boundaries. This modification of Development District No. 4 is not changing District boundaries. The boundaries of Development District No. 4 arc described on the attached Exhibit I -B and illustrated on Exhibit I-C. Parcels to be Acquired. Parcels which may be acquired in whole or in pan are described in the respective Tax Increment Financing Plans, Activities. Development District No. 4 is being modified at this time to reflect the addition of Tax Increment Financing District No. 12, as approved by the City Council on May 13. 1997. In addition, Development District No 4 is being modified to reflect revised project and budget costs for Tax Increment Financing District Nos. 4, 5 and 6, as described within their respective Tax Increment Financing Plans. • Modification to the Development Program for Dceetopment District No. 4 1.2 City of Hutcnmson. Minnesota Modification to the • Tux Increment Financine Plan for Tax Increment Financine District No. .4 May 13, 1997 Introduction The following text represents a modification to the Tax Increment Financing Plan for Tax Increment Financing District No_ 4. The modified Tax Increment Financing Plan represents a continuation of the goals and objectives set forth in the Development Prop for Development District No. 4 and the Tax increment Financing Plan for Tax Increment Financing District No. 4. Generally, the substantive changes include the authority to spend additional tax increments generated from Tax Increment Financing District No. 4 for other redevelopment related projects in Development District No. 4, including Tax Increment Financing Districts Nos. 5 and 6; to expand the budget for Tax Increment Financing District No. 4: and to clarify budgets for previous expenditures. This modification does not add any parcels to this District nor does it change the expected life of the District For further information• a review of the Development Program for Development District No. 4. adopted May, 1980 and modified on April 23. 1990 and December 30. 1991 and the rux increment Financing Plan for Tax Increment Financing District No. 4, adopted May 1980 and modified on April 24, 1990, is recommended. They are available from the City Administrators office of the City of Hutchinson. Parcels to be Included As a result of this modification, parcel number 23- 257-0020 is removed from Tax Increment Financing District No_ 4 and designated for inclusion in Tax Increment Financing District No. 12. The value of this parcel is currently more than it was when established in District No. 4, therefore there are no fiscal implications for this action. Estimated Public Improvement Costs The estimate of public costs, including all previous modifications to the Tax Increment Financing Plan for Tax Increment Financing District No. 4 and the current modified estimated cost breakdown of Development District No. 4 costs associated with financing Tax Increment Financing District No. 4 is found in Appendix A. Estimated Amount of Bonded Indebtedness This modification provides the authority to spend increment from Tax Increment Financing District No. 4 towards the debt service of $700.000 G.O. Tax Increment Bonds, Series 1990A. $475.000 G.O. Tax Increment Bonds, Series 199013, and 5605,000 G.O. Tax Increment Bonds, Series 1992. Pursuant to Minnesota Statutes, Section 469.178, Subdivision 1, General Obligation Tax Increment Bonds may be used as required to amortize the costs identified in this modification. It is further anticipated that future bond sales will be based on availability of tax increment. The City reserves the right to incur bonded indebtedness as a result of this modification. As presently proposed, the City will not he incurring G.O. bonded indebtedness, but may incur indebtedness through interfund borrowing, revenue indebtedness or pay -as -you go financing in an amount up to $1.200.000. Sources of Revenue The costs outlined in Appendix A will be financed through the annual collection of tax increments. Estimated Impact on Other Taxing Jurisdictions No additional fiscal implications are anticipated due to this modification. Modification to Tax Increment Fin an ng Plan for Tax Increment Financing Dsinct So. 4 11 -1 • Mfa" US '97 11: E -LERS � RSSCCSRTES P.Si11 City of Hutchinson,iNlinnesota • Modification to the Tax Increment Financing Plan for Tax Increment Financine District No. 5 May 13. 1997 Introduction The following text represents a modification to the Tax Increment Financing Plan for Tax Increment Financing District No. 5. The modified Tax Increment Financing Plan represents a continuation of the goals and objectives _ sec forth in the Development Program for Development District No. 4 and the Tax Increment financing Plan for Tax Increment Financing Disvici No 5- Generally, the substantive changes include the authority to spend additional tax increments generated from Tax Increment Financing District No. 4 for other redevelopment related projects in Development District No. 4; to expand the budget for Tax Increment Financing District No. 4; and to clarify budgets for previous expenditures. This modification does not add any parcels to this District, nor does it change the expected life of the District. For further information, a review of the Deveiopment Program for Development District No. 4, adopted May, 1980 and modified on April 24. 1990 and December 30, 1991 and the Tax Increment Financing Plan for Tax Increment Financing District No 5 adopted April, 18, 1990, is recommended. They are available from the City Administrator's office of the City of Hutchinson. Estimated Public Improvement Costs The estimate of public costs, including all previous modifications to the Tax Increment Financing Plan for Tax Increment Financing District No. 5 and the current modified estimated cost breakdown of Development District No. 4 costs associated with financing Tax Increment Financing District No. 5 is found in Appendix A. Estimated Amount of Bonded Indebtedness Pursuant to Minnesota Statutes, Section 469.178, Subdivision I, General Obligation Tax Increment Bonds may be used as required to amortize the costs identified in this modification. It is further anticipated that future bond sales will be based on availability of tax increment. The City reserves the right to incur bonded indebtedness ac a result of this modification. As presently proposed, the City will not be incurring G.O. bonded indebtedness. but may incur indebtedness through interfund borrowing, revenue indebtedness or pay -as -you go financing in an amount up to S1,200,000- Sources of Revenue The costs outlined in Appendix A will be financed through the annual collection of tax increments. Estimated Impact on Qther Taxing Jurisdictions No additional fiscal implications are anticipated due to this modification. • Modiricanon to T, Increment Fin rcine Plan for Tax Increment Financing Dosrrm No, 5 III -1 City of Hutchinson, i'rlinnesota Modification to the • 'pax Increment Financine Plan for Tax Increment Financing District No. 6 blay 13, 1997 Introduction The following text represents a modification to the Tax Increment Financing Plan for Tax Increment Financing District No. 6. The modified Tax Increment Financing Plan represents a continuation of the goals and objectives set forth in the Development Program for Development District No. 4 and the Tax Increment Financing Plan for Tax Increment Financing District No. 6. Generally, the substantive changes include the authority to spend additional tax increments generated from Tax Increment Financing District No. 4 for other redevelopment related projects in Development District No. 4; to expand the budget for Tax Increment Financing District No. 4; and to clarify budgets for previous expenditures. This modification does not add any parcels to this District, nor does it change the expected life of the District. For further information, a review of the Development Program for Development District No. 4. adopted 1�Iay, 1980 and modified on April 24. 1990 and December 30, 1991 and the Tax Increment Financing Plan for Tax Increment Financing District No. 6, adopted December 30. 1991, is recommended. They are available from the City Administrator's office of the City of Hutchinson. Estimated Public Improvement Costs The estimate of public costs, including all previous modifications to the Tax Increment Financing Plan for Tax Increment Financing District No- 6 and the current modified estimated cost breakdown of Development District No. 4 costs associated with financing Tax Increment Financing District No. 6 is found in Appendix A. Estimated Amount of Bonded Indebtedness Pursuant to Minnesota Statutes. Section 469.178. Subdivision 1, General Obligation Tax Increment Bonds may be used as required to amortize the costs identified in this modification. It is further anticipated that future bond Wes will be based on availability of tax increment. The City reserves the nght to incur bonded indebtedness as a result of this modification. As presently proposed, the City will not be incurring G.O. bonded indebtedness, but may incur indebtedness through interfund horrowing, rcvcnue indebtedness or pay -as -you go financing in an amount up to $ 1,200,000. Sources of Revenue The costs outlined in Appendix A will be financed through the annual collection of tax increments. Estimated Impact on Other Taxing Jurisdictions No additional fiscal implications are anticipated due to this modification. Modification for Tax Incictrimc Finanune Finn for Tax Increment Financmg Disinct No. 6 IV -I • ^1A'f 03 37 11t57aM ENLEPS u '—SSOCIPTES P.16 %11 Cltv of Hutchinson, Minnesota • 0 Appendix A Modified Sources and Uses of Funds for Tax Increment Financing Districts Nos. 4, 5 and 6 • M1todifi=ion to the T;u Increment finer nm Plano for Tax Incrcmen[ Financing Distract Nos. d, % and 6 • Appendix .A A - I Appendix A SOURCES Tax Increments Bond Proceeds Interest Earnings Special Assessments Other Sa es TOTALS USES Acquisition of property Demolition and relocation Public improvements Site improvements Utilities Interest Other Administration Cost May 13, 1997 TIF Modifications 0 TIF District TIF District TIF District ALL Districts No.4 No.5 No.6 Total Original Original Original Combined Budget Budget Bu dget __ _ Budg ets 921,057 105,000 0 1,026,057 2,803,943 1,570,000 575,000 4,948,943 0 0 200.000 3,925,000 TIF District No- 4 Original Budget _ 935,943 20.000 991,057 253,000 95,000 490, 500 962,000 267 500 5/13197 All Districts Budget Modifications 7,473,943 1,057 ALL Districts Total MODIFIED BUDGETS 0 0 0 650,000 0 0 0 0 135,000 595,000 730,000 470,000 0 0 200,000 0 Bu dget - _ Buddgi i 0 BUDGETS 1,810,000 1,170,000 6,905,000 8,595,000 8,500,000 4,950,000 650,000 0 1,200,000 200,000 0 15,500,000 TIF District TIF District ALL Districts 5/13/97 ALL Districts No. 5 No. 6 Total All Districts Total Original Original Combined Budget MODIFIED Budget Bu dget - _ Buddgi i Modificatlons BUDGETS 900,000 926,321 2,762,264 2,987,736 5,750,000 360,000 20,000 400,000 1,200,000 1,600,000 0 0 901,057 0 901,057 0 20,000 273,000 0 0 95,000 0 75,000 565,500 95,000 0 1,057,000 60,000 128,000 455,500 TOTALS 3025,000 1,415,000 1,169, 321 6,509,321 253,943 526,943 520,000 615,000 2,934,500 3,500,000 0 1,057,000 1,094,500 1,550,000 8,990,679 15, 500,000 Amounts listed above can be reallocated within other budget categories, as long as the budget totals do not change. The modifications Nsled above will be allocated to the three TIF districts when the State Auditor reporting forms are completed. Budget modifications are to include authority for: - Interest expense associated with current bonds, which was previously authorized, but nol listed. - Current Increment expectations -The full 10% administrative expense for the City. -The ability to pool funds from District No. 4 to pay current bonds. - Additional Industrial Park developments. 2 D �o n n r m D in D 0 ri H D m u. T • CERTIFICATE CITY OF HUTCHINSON I, the undersigned being the duly qualified City Administrator of the City of Hutchinson, Minnesota, hereby attest and certify that: 1. As such officer, I have the legal custody of the original record from which the attached resolution was transcribed. 2. I have carefully compared the attached resolution with the original record of the meeting held on May 13, 1997, at which the resolution was acted upon. 3. I find the attached resolution to be a true, correct and complete copy of the original: RESOLUTION NO. 1o838 Resolution Approving Amendments to Tax Increment Financing Plans for Tax Increment District Nos. 4, 5 and 6 4. I further certify that the affirmative vote on said resolution was ayes, nayes, and absent/ abstention. 5. Said meeting was duly held, pursuant to call and notice thereof, as required by law, and a quorum was present. WITNESS my hand official as such City Administrator and the seal of said City, this day of 1997. (SEAL) • Gary D. Plotz, City Administrator i RESOLUTION NO. i naza RESOLUTION APPROVING AMENDMENTS TO TAX INCREMENT FINANCING PLANS FOR TAX INCREMENT DISTRICT NOS. 4,5 AND 6 BE IT RESOLVED by the City Council (the "Council ") of the City of Hutchinson, Minnesota (the "City"), as follows: Section 1. Recitals 1.01. It has been proposed that the City modify the Tax Increment Financing Plans for Tax Increment District Nos. 4, 5 and 6, pursuant to and in accordance with Minnesota Statutes, Sections 469.174 to 469.179, inclusive, as amended. 1.02. The Council has investigated the facts and has caused to be prepared amendments (the "Amendments ") to the to the Tax Increment Financing Plans (the "Plans ") for Tax Increment District Nos. 4, 5 and 6 (the "Tax Increment Districts "). 1.03. The City has performed all actions required by law to be performed prior to the approval of the modification of the Program and . amendment of the Financing Plan by the Amendments and the approval of the Plan, including, but not limited to, notification of McLeod County and School District No. 423, and the holding of a public hearing upon published notice is required by law. Section 2. Findings for the Modification of Development District No. 4 and the Amendment of 1 -.1 .1' Plan and the A of 1" Amendment and Plan Relating Thereto. 2.01. The Council hereby finds that the amendment of the Financing Plans by the Amendments are intended and, in the judgment of this Council, the effect of such actions will be, to provide an impetus for development of property in the City, to increase employment and otherwise promote certain public purposes and accomplish certain objectives as specified in the Development Program for Development District No. 4. 2.02. The Council further finds that the proposed development, in the opinion of the Council, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and, therefor, the use of tax increment financing is deemed necessary; that the Plans conform to the general plan for the development or redevelopment of the City as a whole; and that the Plans will afford maximum opportunity consistent with the sound needs of the City as a whole, for the development of Development District No. 4 by private enterprise. The City confirms its previous findings made under Minnesota Statutes, Section 469.174 to 469.179 with respect to the Tax Increment Districts, and such findings are not affected by the Amendments. 3.01.. The Amendments are hereby approved and adopted, and shall be placed on file in the office of the City Administrator. Dated: Mav 13, 1997. Mayor Attest: City Administrator (SEAL) i -2- • NO.5 No.6 140.4 4kpandlx A Budget Budget Budget Amended • SQURGES Armendraent Amendment I May 13, 1997 TIF Modillcatlom Budgets (1,828,943) (246,0" 50.000 970.000 TIF District TF District TIF District TIF District TF District TIF District TIF District TIF District TIF District ALL Dietdcts N0. 4 No. 5 No. 6 No. 4 No. 5 No. 6 No. 4 140. 5 No. 6 Tout Original Original Original Budget Budget Budget Arno nded Arwodsd Amended Amended Budget Budget Budget Amendment ArnarKkn rN Amanderert Budgets Budgets Budgets Budgets Tax Increments 92t,057 105,000 0 5,813,943 2,470,000 600,000 6,735.00 2,575,000 800,000 10,210,0 Interest EarnkW 0 0 0 575,000 60, 000 25,000 575,000 60,000 25,000 660,000 SpecialAsaeasments 0 0 0 0 0 0 0 0 0 0 other 0 135,000 595,000 176,000 165,000 30,000 175,000 300,000 626,000 1,100,000 Sales 200,000 0 0 (50,00D) 0 0 150,000 0 0 160,000 Transfers In 0 0 0 0 1,110.000 Q0.00D 0 1,116,000 475^0 1,690AW TOTALS 1,121,057 240,000 596,000 6,513,943 3,810,000 1,430,000 7,635,000 4,050,000 2025A00 13,710,011113 MM TF District TF 01strkt TF Dlskict TF District TIF District TF Disalct TF District TF District TF District ALL Dlstdets No. 4 No. 5 No, 6 140.4 No. 5 No. 6 No. 4 No. 5 No. 6 ToW Original Orlgfnd original Budget Budget Budget Amended Awarded Amended Aarruded Budget Budget Budget Amertdnrteet Aeertdrea nl Amendment Budgets Budget@ Budgets Budgets Transfers Out 0 0 0 1,5" 0 0 1,890.00 0 0 1,690,000 Acquisition of property 935 .943 900,000 926,321 744,057 425,000 290.679 1,860.000 1,325,000 1,226,000 4,230,000 Demolition and relocation 20. 000 360,000 20,000 45,800 640,690 30,000 55,000 1,000,000 50,000 1,115,000 Public improvements 91/1,057 0 o (551,057) 0 0 350,000 0 0 350.000 Site improvements 253.000 0 20,000 (103,000) 0 (20, 150,000 0 0 150.00 Utilities 95,000 0 0 490,000 0 0 575,000 0 0 675,000 Interest 490,500 0 75AW 1674,500 1,325,000 475,000 1,525,000 1,325,000 550.00 3,400,000 Other 962,000 95,000 0 (12,000) (95,000) 0 650AW a 0 650,000 Adminstration Cost 267,500 60,000 128,000 452,500 340,000 72,000 75OA00 400,000 200,000 1,360,000 3,925.000 3,710,000 2,635,000 556,1179 § 7,635,000 4,050,000 2,026,000 • Amounts fisted above can be reallocated within other budget categories, as long as the budget totals do not change. • Budget modifications are to itcltrde authority for. current increment expectations, 10% admtristrallve expense for the City, the ability to pool tads from District No. 410 pay current borrda and ad&tIonal Industrial Park developments. 'The State Auditor now requires in its Annual Reporting Forms thal the My report as a source the total amount of Bond Proceeds and as a use the Iota] amount of Bond Principal Payments. The chart below inQcates the budget modifications for these Items. TIF District TIF District TIF District No. 4 No. 5 NO. a OrWral/Ameru Original Original Budget Budget Budget SOURCE: Bond Proceeds 2,803,043 1,570,000 575 l USE: Bond Pdraapal Pmts, 0 0 0 TIF District TF District TF District ■ TF District MF District No.4 NO.5 No.6 140.4 No.6 Budget Budget Budget Amended AmaMsd Awu a 1swt Armendraent Amendment I Budgets Budgets (1,828,943) (246,0" 50.000 970.000 1,326,000 975,000 1.325,000 630,000 M 1 TF District ALL Dlstric No.6 Total AmeMed Anerded 630,000 2,970,100 630.000 2,930000 PUBLISHED IN THE HUTCHINSON LEADER THURSDAY, APRIL 24, 1997 • PUBLICATION NO. 5025 NOTICE OF PUBLIC HEARING ON PROPOSED AMENDMENTS TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 4 AND THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT DISTRICT NO. 4 AND ON A PROPOSED TAX INCREMENT FINANCING PLAN CITY OF HUTCHINSON, MINNESOTA NOTICE IS HEREBY GIVEN that the City Council of the City of Hutchinson (the "City") will hold a public hearing on proposed amendments (the "Amendments ") to The Development Program (the "Program ") for Development District No. 4 of the City (the "Development District ") and the Tax Increment Financing Plan for Tax Increment District No. 4 ( "Tax Increment District No. 4 "), and on a proposed Tax Increment Financing Plan of the City at 6:00 p.m. on Tuesday, May J_L 1997, in the Council Chambers at the Hutchinson City Center, Hutchinson, Minnesota. The proposed Amendments authorize the City to undertake certain activities in connection with the development of property located at Block 1. Lo t 2 H Industrial Park . ( the "Property ") in the City. The Financing Plan will • establish Redevelopment Tax Increment Financing District No. 12 ( "Tax Increment District No. 12) and provide for the payment of certain costs incurred directly by the City related to the development of the Property and the development or redevelopment of other property included in the Development District or the reimbursement to owners of such property of certain costs paid by private parties in connection with the development or redevelopment of such property. The property to be included in Tax Increment District No. 12 is presently included in Tax Increment District No. 4, and the Amendments will remove the property from Tax Increment District No. 4. Accompanying this notice is a map showing the area proposed to be included in the Tax Increment District No. 12 which is the area from which tax increments from the Tax Increment District No. 12 may be collected, and a map showing the area included in the Development District, which is the area in which tax increments from the Tax Increment District No. 12 may be expended. All who wish to be heard as to the Amendments and the Financing Plan will be given an opportunity to express their views at the time of the public hearing or may file written comments with the City Administrator prior to the public hearing. Dated: April 22, 1997 J • By City Ad&inistri6r 12 INDUSIAUL LLVNtD 5[ � � "_- 5TH • RESOLUTION NO. 1os39 RESOLUTION APPROVING ELIMINATING A PARCEL FROM THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 4 BE IT RESOLVED by the City Council of the City of Hutchinson, Minnesota (the "City") as follows: 1. The City acting pursuant to Minnesota Statutes, Sections 469.124 to 469.134, has previously approved the establishment of Development District No. 4 in the City (the "Development District'), and approved a Development Program and amendments thereto (as so amended, the "Program ") for the Development District. In order to finance the costs of the Program the City has approved a Tax Increment Financing Plan (the "Financing Plan"), which establishes tax increment financing district which has been designated by the City as Tax Increment Financing District No. 4 ( "District No. 4 "). It has been proposed that the City eliminate a parcel whose tax identification number is Parcel 23.257.002 whose legal description is Block 1. Lot 2. 2nd Addition to Hutchinson Industrial District (the "Parcel ") from District No. 4. The current net tax capacity of the Parcel equals or exceeds the original net tax capacity of the Parcel which is used for determining tax increment revenue from the Parcel. • 2. The elimination of the Parcel from the District is hereby approved and the City Administrator is hereby directed to notify the McLeod County Auditor of the elimination of the Parcel from District No. 4. Passed by the Council this 13th day of May, 1997. Mayor Attest: City Administrator 40 STATE OF MINNESOTA) COUNTY OF MCLEOD ) CITY OF HUTCHINSON ) I, the undersigned, being the duly qualified and acting City Administrator of the City of Hutchinson, Minnesota, do hereby certify that I have carefully compared the attached copy of: EXTRACT OF HUTCHINSON CITY COUNCIL MINUTES TUESDAY, MAY 13, 1997 with the original file in the Office of the City Administrator, and the same is a full, true and complete copy thereof. WITNESS my hand as such City Administrator and the Corporate Seal of the City this day of 1997. (SEAL) • Gary D. Plotz, City Administrator Councilmember introduced the following resolution, the ready of which was dispensed with by unanimous consent, and • moved its adoption: RESOLUTION NO. i nRan RESOLUTION APPROVING AN AMENDMENT TO DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 4 AND TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 12 BE IT RESOLVED by the City Council (the "Council') of the City of Hutchinson, Minnesota (the "City"), as follows: Section 1. Recitals 1.01. It has been proposed that the City modify the Development Program for Development District No. 4, establish Tax Increment Financing District No. 12 and approve and adopt the Tax Increment Financing Plan relating thereto, all pursuant to and in accordance with Minnesota Statutes, Sections 469.124 to 469.134, inclusive, as amended, and Minnesota Statutes, Sections 469.174 to 469.179, inclusive, as amended. 1.02. The Council has investigated the facts and has caused to be prepared an amendment (the "Amendment ") to the Development Program (the "Program ") for Development District No. 4 ( "Development District No. 4 ") and a proposed Tax Increment Financing Plan (the "Plan ") for Tax Increment Financing District No. 12 (the "Tax Increment District "). 1.03. The City has performed all actions required by law to be performed prior to the approval of the modification of the Program by the Amendment and the approval of the Plan, including, but not limited to, notification of McLeod County and School District No. 423 having taxing jurisdiction over the property to be included in the Tax Increment District, and the holding of a public hearing upon published notice is required by law. Section 2. Findings for the Modification of Develapnent District-No-4 7 1 and-Plan l" " • 2.01. The Council hereby finds that the Tax Increment District is a economic development district. 9 2.02. The Council herebv finds that the modification of Development District No. 4 by the Amendment and the establishment of the Tax Increment District by the Plan and the approval of the Amendment and Plan relating thereto, are intended and, in the judgment of this Council, the effect of such actions will be, to provide an impetus for development of property in the City, will result in increased employment in the State of Minnesota, will result in the preservation and enhancement of the tax base of the State of Minnesota and otherwise promote certain public purposes and accomplish certain objectives as specified in the Program as amended by the Amendment and the Plan. 2.03. The Council further finds that the proposed development, in the opinion of the Council, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future without the use of tax increment financing, and that the increased market value of the property in the Tax Increment District that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the Tax Increment District permitted by the Plan, and, therefor, the use of tax increment financing is deemed necessary; that the Plan conforms to the general plan for the development or redevelopment of the City as a whole; and that the Plan will afford maximum opportunity consistent with the sound needs of the City as a whole, for the redevelopment of Development District No. 4 by private enterprise. • 2.04. The reasons and supporting facts for each determination in Section 2.03 is set forth in writing, attached hereto as Exhibit A. Section 3. Approval cf Program and Plan 3.O1. The Amendment and Plan are hereby approved and adopted, and shall be placed on file in the office of the City Administrator. 3.02. The Citv staff, the City's advisors and legal counsel are authorized and d!rex-ted to proceed with the implementation of the Program as amended by the Amendment and the Plan and for this purpose to negotiate, draft, prepare and present this Council for its consideration all further plans, resolutions, documents and contracts necessary for this purpose. Section 4. Further Procedures 4.01. The City Administrator is authorized to request certification for the Tax Increment District from the McLeod County Auditor's Office and to file the Plan and Program with the Minnesota Department of Revenue pursuant to Minnesota Statutes, Section 469.175, subdivision 2. • _2 Dated: May 13,1997. Mayor (SEAL) City Administrator The motion for the adoption of the foregoing resolution was duly seconded by Councilmember . and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: A whereupon said resolution was declared duly passed and adopted, and was signed by the Mayor which signature was attested by the City Administrator. -3- 0 • EXHIBIT :1 TO RESOLUTION NO. 10840 The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan for Tax Increment Financing District No. 12 as required pursuant to Minnesota Statutes, Section 469.175, subdivision 3 are as follows: 1. Finding that the Tax Increment District is a economic development district as defined in Minnesota Statutes, Section 469.175, subd. 12. The Tax Increment District consists of one parcel of property and adjacent public right of way. The City will enter into a development agreement with the developer of the property in the Tax Increment District in which the developer will covenant that no more than 15% of the facility to be constructed on the property will be used for a purpose other than set forth in clauses (1) to (6) of Minnesota Statutes, Section 469.176, subdivision 4c(a). 2. Finding that the proposed development, in the opinion of the Council, would not occur solely through private investment within the reasonably foreseeable future and, therefore, the use of tax increment financing is deemed necessary. Due to the high cost of developing the property in the Tax Increment District, the proposed development is only economically feasible through the use of tax increment financing assistance. 3. Finding that the increased market value of the property in the Tax Increment District that could be reasonably expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the Tax Increment District. A comparative analysis of estimated market values both with and without establishment of Tax Increment Financing District No. 12 and the use of tax increments has been performed as described above. If all development which is proposed to assisted with tax increment were to occur in District No. 12, the total increased market value would be up to 5310,000. It is the Council's finding that no development with a market value of greater than S198,] 00 would occur without tax increment assistance in this district within 9 years. This finding is based upon evidence from general past experience with the high cost of site and public improvements in the general area of District No. 12 40 4. Finding that the Plan conforms to the general plan for the development or redevelopment of the municipality as a whole. • The site is appropriately zoned. The Plan has been reviewed by the Planning Commission and has been found to conform to the general development plan of the City. 5. Finding that the Plan will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development of Development District No. 4 by private enterprise. The establishment of the Tax Increment District will result in the development of industrial property in the City by a private landowner and will result in increased employment and tax base. 0 -5- • Dra)i as u_t Mav 7, 1997 Draft for City Council Approval TAX INCREMENT FINANCING PLAN for the establishment of TAX INCREMENT FINANCING DISTRICT NO. 12 (an economic development district) within DEVELOPMENT DISTRICT NO. 4 0 CITY OF HUTCHINSON MCCLEOD COUNTY STATE OF MINNESOTA Public Hearing: May 13, 1997 Adopted: Prepared by EHLERS AND ASSOCIATES, INC. 2950 Norwest Building 90 South Seventh Street Minneapolis, Minnesota 55402 -4100 Phone: (612) 339 -8291 Fax: (612)339 -0854 • E -mail: info @ehlers- inc.com Web Site: www.ehlerS- inc.com s 4 , TABLE OF CONTENTS (for reference purposes only) E SECTION XIII TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 12 ............................... 13 -1 Subsection 13 -I. Forward ........................ _ ...... L3 -1 Subsection 13 -2. Statutory Authonry ..... . .. . ................ I .............. _ ... 13 -1 Subsection 13 -3. Statement of Objectives ......... ............................... 13 -1 Subsection 13-4. Development Program Overview . .................. ......... ..... 13 -1 _ Subsection 13 -5. Legal Description of Property in Tax Increment Financing District No. 12 . 13 -1 Subsection 13 -6. Classification of Tax Increment Financing District No. 12 ............. 13 -2 Subsection 13 -7. Original Tax Capacity and Tax Rate .............................. 13 -2 Subsection 13 -8. Estimated Captured Net Tax Capacity Value /Increment ............... 13 -3 Subsection 13 -9. Property To Be Acquired ............ ...........................13 -3 Subsection 13 -10. Uses of Funds .................................... ............ 13 -4 Subsection 13 -11. Sources of Revenue/Bonded Indebtedness .......................... 13 -4 Subsection 13 -12. Duration of Tax Increment Financing District No. 12 ................. 13 -5 Subsection 13 -13. Estimated Impact on Other Taxing Jurisdictions ............... . ... . . 13 -5 Subsection 13 -14. Modifications to Tax Increment Financing District No. 12 ............. 13 -6 Subsection 13 -I5. Administrative Expenses ........ ............................... 13 -7 Subsection 13 -16. Limitation of Increment ..................................... ...13 -7 Subsection 13 -17. Use of Tax Increment ........... ............................... 13 -8 Subsection 13 -18. Notification of Prior Planned Improvements ........................ 13 -9 Subsection 13 -19. Excess Tax Increments ............. I........................... 13 -9 Subsection 13 -20. Requirements for Agreements with the Developer .................... 13 -9 Subsection 13 -21. Assessment Agreements ......... ............................... 13 -9 Subsection 13 -22. Administration of Tax Increment Financing District No. 12 ........... 13 -10 Subsection 13 -23. Financial Reporting Requirements ............................... 13 -10 Subsection 13 -24. Municipal Approval and Public Purpose ....................... . .. 13 -12 Subsection 13 -25, Other Limitations on the Use of Tax Increment ........ . ............ 13 -12 Subsection 13 -26. State Tax Increment Financing Aid ............ . ............... 13 -13 Subsection 13 -27. County Road Costs ............ ............................... 13 -14 Subsection 13-28. Economic Development and Job Creation .............. .. . ....... 13 -14 Subsection 13-29. Summary ........ ............... .. .......................... 13 -14 APPENDIX A BOUNDARY MAPS OF DEVELOPMENT DISTRICT NO. 4 AND TAX INCREMENT FINANCING DISTRICT NO. 12 . ............................... A -] APPENDIX B LEGAL DESCRIPTION OF PROPERTY TO BE INCLUDED IN TAX INCREMENT FINANCING DISTRICT NO. 12 . ............................... B -1 APPENDIX C ESTIMATED CASH FLOW FOR TAX INCREMENT FINANCING DISTRICT NO. 12 ... C -1 APPENDIX D MINNESOTA BUSINESS ASSISTANCE FORM (MINNESOTA DEPARTMENT OF TRADE AND ECONOMIC DEVELOPMENT) ..... - . D -I • SECTION XIII • TAX INCREMENT FINANCING PL4N FOR TAX INCREMENT FINANCING DISTRICT NO. 12 Subsection 13 -1. Forward The City of Hutchinson ( "City "), staff and consultants have prepared the following information for the expedition and establishment of Tax Increment Financing District No. 12 ( "District No. 12 "), an economic development tax increment financing district, located in Development District No. 4. Subsection 13 -2. Statutory Authority Within the City, there exist areas where public involvement is necessary to cause development to occur. To this end, the City has certain statutory powers pursuant to Minnesota Statutes ( "M.S. "), Sections 469.124 through 469.134, inclusive, as amended, and M.S., Sections 469.174 through 469.179, inclusive, as amended (the "Tax Increment Financing Act" or "TIF Act "), to assist in financing public costs related to this project. This Section contains the Tax Increment Financing Plan (the "Plan ") for District No. 12. Other relevant information is contained in the Modified Development Program for Development District No. 4. Subsection 13 -3. Statement of Obiectives District No. 12 currently consists of 1 parcel of land and adjacent and internal rights -of -way. District No. 12 is created to facilitate the construction of a manufacturing facility for Plastic Specialties Manufacturing, Inc in the City of Hutchinson. This plan is expected to achieve many of the objectives outlined in the Modified Development Program for Development District No. 4. The activities contemplated in the present Modified Development Program and the Tax Increment Financing Plan do not preclude the undertaking of other qualified development or redevelopment activities. These activities are anticipated to occur over the life of District No. 12 and Development District No. 4. Subsection 13 -4. Development Program Overview L Property to be Acquired - Selected property located within District No. 12 may be acquired by the City and is further described this Plan. 2. Relocation - Complete relocation services are available pursuant to M.S_, Chapter 117 and other relevant state and federal laws. 3. Upon approval of the developer's plan relating to the project and completion of the necessary legal requirements, the City may sell to the developer selected properties that they may acquire within District No. 12 or may lease land or facilities to the developer. 4. The City may perform or provide for some or all necessary acquisition, construction, relocation, demolition, and required utilities and public streets work within District No. 12. Subsection 13 -5. Legal Description of Propertv in Tax Increment Financing District No. 12 District No. 12 encompasses all property and adjacent rights -of -way identified by the parcel listed below. Please see the map in Appendix A for further information on the location of District No. 12. Ot, or Hutchinson Tn Increment Finnnclne Plan lot Fux Incremem Fna cane Utsinct No C I I Parcel Numbers 23- 257 -0020 Subsection 13 -6. Classification of Tax Increment Financing District No. 12 The City, in determining the need to create a tax increment financing district in accordance with .M.S., Sections 469.174 to 469.179, as amended, inclusive, finds that Tax Increment Financing District No. 12, to be established, is an economic development district pursuant to M.S._ Section 469.174_ Subd. 12 as defined below: "Economic development district" means a type of tax increment financing district which consists of anti project, or portions of a project, not meeting the requirements found in the definition of redevelopment district, renewal and renovation district, soils condition district, mined underground space development district, or housing district, but which the authority funds to be in the public interest because: (1) it will discourage commerce, industrv, or manufacturing from moving their operations to another state or municipality; or (2) it will result in increased employment in the state; or (3) it will result in preservation and enhancement of the tax base of the state. District No. 12 is in the public interest because it will meet the statutory requirement from clauses 1, 2 and 3. Pursuant to M.S.. Section 469.176, Subd. 4(c) Revenue derived from tax increment from an economic development district may not be used to provide improvements, loans, subsidies, grants, interest rate subsidies, or assistance in any form to developments consisting of buildings and ancillary facilities, if more than 15 percent of the buildings and facilities (determined on the basis of square footage) are used for a purpose other than: (1) the manufacturing or production of tangible personal property, including processing resulting in 10 the change in condition of the property; (2) warehousing, storage, and distribution of tangible personal property, excluding retail sales; (3) research and development related to the activities listed in items (1) or (2); (4) telemarketing if that activity is the exclusive use of the property; (5) tourism facilities; or (6) space necessary for and related to the activities listed in items ( I) and (5). The facilities in District No. 12 meet the conditions of Purposes 1, 2, and 6. Subsection 13 -7. Original Tax Capacity and Tax Rate Pursuant to M.S., Section 469.174, Subd 7 and M.S., Section 469.177, Subd. 1, the Original Net Tax Capacity (ONTC) as certified for District No. 12 is based on the market values placed on the property by the assessor in 1998 for taxes payable 1999. Pursuant to M.S., Section 469.177, Subd. 1(f, the ONTC will be increased each year by a factor of which represents the average percentage increase in the estimated market value of all property in District No. 12 during the five year period before certification of District No. 12 (assessment years 1991 through 1996). The County Auditor will increase the ONTC 10.39% percent each year over the life of District No. 12. LJ (Cnv of Hutchinson T;u Increment Financing Plan for ra Increment Flnuncmg Dlsvlct No 12 13-2 • 1991/92 EMV 1996/97 EMV Increase 4r Increase Avg. Annual Increase 10,200 15.500 5300 51.96% 10.39% Pursuant to M.S.. Section 469.177. Subds. I and 2. the County Auditor shall certify in each year (beginning in the payment year 1999) the amount by which the original value has increased or decreased as a result of: I . change in tax exempt status of property; 2. reduction or enlargement of the geographic boundaries of the district; 3. change due to adjustments, negotiated or court- ordered abatements; 4. change in the use of the property and classification; 5. change in state law governing class rates; or 6. change in connection with previously issued building permits. 0 In any year in which the current Net Tax Capacity value of District No. 12 declines below the ONTO, no value will be captured and no tax increment will be payable to the City. The original local tax rate for District No. l2 will be the local tax rate for taxes payable 1997. The Original Tax Capacity and the Original Local Tax Rate for District No. 12 appear in the table below. Original Tax Capacity Value Percent Retained by City Original Local Tax Rate Subsection 13 -8. Estimated Captured Net Tax Capacity Value/Increment Pursuant to M.S., Section 469.174 Subd. 4 and M.S., Section 469.177, Subd. I, 2, and 4, the estimated Captured Net Tax Capacity (CTC) of District No. 12. within Development District No. 4, upon completion of the project, will - annually approximate tax increment revenues as shown in the table below. The City requests 100 percent of the available increase in tax capacity for repayment of its obligations and current expenditures, beginning in the tax year payable 1999. The project tax capacity listed is an estimate of values when the project is completed. $713 100% 146.8770 Project Estimated Tax Capacity upon Completion of Project (PTC) 13,368 Original Estimated Net Tax Capacity (ONTC) 713 Estimated Captured Tax Capacity (CTC) 12,655 Estimated Annual Tax Increment (CTC x Local Tax Rate) $18,587 Subsection 13 -9. Propertv To Be Acquired The City may acquire any parcel within District No. 12 including interior and adjacent street rights of way. City or Hutchinson Tax Increment Financing Plan IorT" Increment Financing Distna No. 12 IJ -} Any properties identified for acquisition will be acquired by the City only in order to accomplish one or more of the following_ storm sewer improvements: provide land for needed public streets, utilities and facilities; carry out land acquisition, site improvements, clearance and /or development to accomplish the uses and objectives set forth in this plan. The following are conditions under which properties not designated to be acquired may be acquired: The City may acquire property by gift, dedication, condemnation or direct purchase from willing sellers in order to achieve the objectives of this Plan. Such acquisitions will be undertaken only when there is assurance of funding to finance the acquisition and related costs. Subsection 13 -10. Uses of Funds Currently under consideration for District No. 12 is a proposal to facilitate the construction of a manufacturing facility for Plastic Specialties Manufacturing, Inc. The City has determined that it will be necessary to provide assistance to the project for certain costs. The City has conducted a feasibility study for the development or redevelopment of property in and around District No. 12. To facilitate the establishment and development of District No. 12, this Plan authorizes the use of tax increment financing to pay for the cost of certain eligible expenses. The estimate of public costs and uses of funds associated with District No_ 12 is outlined in the following table. Uses of Funds Total Site Improvements S15,500 Site Improvements (Local Contribution) 16,500 Public Improvements to Property 74,000 Other Related Costs. Incl. Interest 59,000 Administrative Costs (up to 10 %) 16,500 TOTAL $181,500 As listed above, tax increment may be used to pay for interest and capitalized interest on any for of indebtedness incurred in connection with activities in Development District No. 4. Estimated costs associated with Tax Increment Financing District No. 12 are subject to change. The cost item "Public Improvements" will be payment against a special assessment for qualified public improvements. The cost of all activities to be considered for tax increment financing will not exceed, without formal modification. the budget above pursuant to the applicable statutory requirements. Pursuant to M.S., Section 469.1763, Subd. 2, no more than 20 percent of the tax increment paid by property within District No. 12 will be spent on activities related to development or redevelopment outside of District No. 12 but within the boundaries of Development District No. 4, (including administrative costs, which are considered to be spent outside of District No_ 12) subject to the limitations as described in this Plan. Subsection 13 -11. Sources of Revenue/Bonded Indebtedness Public improvements costs, and site preparation costs and other costs outlined in the Uses of Funds will be financed primarily through the annual collection of tax increments_ The City reserves the right to use other sources of revenue legally applicable to the Modified Development Program and the Plan, including, but not limited to, special assessments, general property taxes, state aid for road maintenance and construction, Ah City of Hutchinson 'rx\ Increment Finannng Plan for'tax Incrcmern Financing Distnet No 12 12-4 Proceeds from the sale of land- other contributions from the developer and investment income, to pay for the Estimated Public Costs. The City reserves the right to incur bonded indebtedness as a result of the Plan. As Presentl City will not be incurring bonded indebtedness. Future indebtedness may be required to finartother authorized activities. The total amount of bonded indebtedness related to the use of will not exceed $165,000 without an amendment to the Plan pursuant to applic tax increment financing able statutory requirements. This provision does not obligate the City to incur debt. The City will issue bonds or incur other indebtedness only upon the determination that such action is in the best interest of the City. The City may also finance the activities to be undertaken pursuant to the Plan through loans from funds of the City or to reimburse the developer on a "pay -as- you -go" basis for eligible activities paid for by the developer. The estimated sources of funds for District No. 12 are contained in the table below. Sources of Funds Total Tax Increment $165,000 Local Contribution 16,500 TOTAL $181,500 Substation 13 -12 Duration of Tax Increment Fina»cinsr Dlstrirt l .12 Pursuant to U.S., Section 469.175, Subd 1, curd M.S., Section 469.176, Subd. 1, the duration of District No. 12 must be indicated within the Plan Pursuant to M.S., Section 469.176, Subd. 1(b), the duration of District No. 12 will be 9 years from the date of receipt of the first increment by the City or 11 years from the date of approval of the Plan, whichever is less. The date of receipt by the City of Hutchinson of the first tax increment will be approximately 1999. Thus, it is estimated that District No. 12, including any modifications of the Plan for subsequent phases or other changes, would terminate after 2007, or when the Plan is satisfied. The City does reserve the right to decertify District No. 12 prior to the legally required date. Subsection 13 -13. Estimated Impact on Other Ttixlne iuri� dicHnns The estimated impact on other taxing jurisdictions assumes construction which would have occurred without the creation of District No. 12. If the construction is a result of tax increment financing, the impact is $0 to otherentities. Notwithstanding, the fact that the fiscal impact on the other taxing jurisdictions is $0 due to the fact that the construction would not have occurred without to assistance of the City , the following estimated impact of District No. 12 would be as follows if the "but for" test was not met: IMPACT ON TAX BASE 1996/1997 Estimated Captured Total Net Tax Capacity (CTC) Percent of CTC Tax Capacity Ution Proiect Completion to Entity Total McCleod County 16,670,618 12,655 0. I.S.D. No. 423 8,746,049 12,655 0.1447 %a City of Hutchinson 6,641,048 12,655 0.1906% • City of Hutchinson Tu Increment Fin tng Plan for Tax Increment Rnem:Ing Distnn No, 12 13-5 IMPACT ON TAX RATES McCleod County I.S.D. No. 423 City of Hutchinson Other Total 1996/1997 Percent Potential Extension Rates of Total CTC Taxes 0.4321 29.42% 12,655 5,468 0.3767 25.65% 12,655 4,767 0.6579 44.79% 12,655 8,326 0.0021 0.14% 12,655 1.468770 100.00% 18,587 The estimates listed above display the captured tax capacity when all construction is completed. The tax rate used for calculations is the 1996/Pay 1997 rate. The total net capacity for the entities listed above are based on Pay 1997 figures. District No. 12 will be certified under the actual 1996/Pay 1997 rates, as indicated above. Subsection 13 -14. Modifications to Tax Increment Financine District No. 12 In accordance with M.S., Section 469.175, Subd. 4, any: 1. reduction or enlargement of the geographic area of Development District No. 4 or District No. 12; 2. increase in amount of bonded indebtedness to be incurred, including a determination to capitalize interest on debt if that determination was not a part of the original plan, or to increase or decrease the amount of interest on the debt to be capitalized; 3. increase in the portion of the captured net tax capacity to be retained by the City ; 4. increase in total estimated tax increment expenditures; or 5. designation of additional property to be acquired by the City , shall be approved upon the notice and after the discussion, public hearing and findings required for approval of the original plan. The geographic area of District No. 12 may be reduced, but shall not be enlarged after five years following the date of rertification of the original net tax capacity by the county auditor. The requirements of this paragraph do not apply if (1) the only modification is elimination of parcel(s) from Development District No. 4 or District No. 12 and (2) (A) the current net tax capacity of the parcel(s) eliminated from District No. 12 equals or exceeds the net tax capacity of those parcel(s) in District No. 12's original net tax capacity or (B) the City agrees that, notwithstanding M.S., Section 469.177, Subd. 1, the original net tax capacity will be reduced by no more than the current net tax capacity of the parcel(s) eliminated from District No. 12. The City must notify the County Auditor of any modification that reduces or enlarges the geographic area of District No. 12 or Development District No. 4. Modifications to Tax Increment Financing District No. 12 in the form of a budget modification or an expansion of the boundaries will be recorded in the Plan. s L� Cily of Hmchineon Tax Increment Financing Plan for Tax Incremenl Financing District No. 12 13-6 Subsection 13 -15. Administrative Expenses In accordance with M.S.. Section 469.174, Subd. 14, and M.S.. Section 469.176. Subd .l. administrative expenses means all expenditures of the City . other than: amounts paid for the purchase of land or amounts paid to contractors or others providing materials and services, including architectural and erimneerine services, directly connected with the physical development of the real property in the district; relocation benefits paid to or services provided for persons residing or businesses located in the district: or _ 3. amounts used to pay interest on, fund a reserve for, or sell at a discount bonds issued pursuant to M.S., Section 469.178. Administrative expenses also include amounts paid for services provided by bond counsel, fiscal consultants, and planning or economic development consultants. Tax increment may be used to pay any authorized and documented administrative expenses for District No. 12 up to but not to exceed 10 percent of the total tax increment expenditures authorized by the Plan or the total tax increment expenditures for Development District No. 4, whichever is less. Pursuant to M.S.. Section 469.176. Subd. 4h, tax increments may be used to pay for the county's actual administrative expenses incurred in connection with District No. 12. The county may require payment of those expenses by February l5 of the year following the year the expenses were incurred_ Pursuant to M.S., Section 469. 177, Subd. 11, the county treasurer shall deduct an amount equal to 0.1 percent of any increment distributed to the City and the county treasurer shall pay the amount deducted to the state • treasurer for deposit in the state general fund to be appropriated to the State Auditor for the cost of financial reporting of tax increment financing information and the cost of examining and auditing authorities' use of tax increment financing. Subsection 13 -16. Limitation of Increment Pursuant to M.S.. Section 469-176. Subd. 1(a), no tax increment shall be paid to the City for District No. 12 after three (3) years from the date of certification of the Original Net Tax Capacity value of the taxable property in District No. 12 by the County Auditor unless within the three (3) year penod: (a) bonds have been issued pursuant to M.S., Section 469.178, or in aid of a project pursuant to any other law, except revenue bonds issued pursuant to M.S_. Sections 469.152 to 469.165, or (b) the City has acquired property within District No. 12, or (c) the City has constructed or caused to be constructed public improvements within District No. 12. The bonds must be issued, or the City must acquire property or construct or cause public improvements to be constructed by approximately May, 2000. The tax increment pledged to the payment of bonds and interest thereon may be discharged and may be terminated if sufficient funds have been irrevocably deposited in the debt service fund or other escrow account held in trust for all outstanding bonds to provide for the payment of the bonds at maturity or redemption date. City or Hutchinson Tax Increment Fnancmg Plan for Lax Increment Financme D,.sincI No 12 11-7 Pursuant to M.S.. Section 469.176, Subd. 6: if, after four tears from the date of certification of the original net tax capaciry of the tax increment financing district pursuant to M.S., Section 469-177. no demolition. rehabilitation or renovation o property or other site preparation, including; qualified improvement of a street adjacent to a parcel but not installation of utility service including sewer or water sysrems, has been commenced on a parcel located within a tax increment financing district by the authority or by the owner of the parcel in accordance with the tar increment financing plat. no additional tae increment may be taken from that parcel and the original net laic capacity of that parcel shall be excluded from the original net tax capacity of the tax increment financing district. If the authority or the owner of the parcel subsequently commences demolition, rehabilitation or renovation or other site preparation on that parcel including qualified improvement of a street adjacent to that parcel, in accordance with the tax increment financing plan, the authorit shall certify to the county auditor that the activity has commenced and the county auditor shall terrify the net tax capacity thereof as most recently certified b the commissioner of revenue and add it to the original net tax capacity of the tax increment financing district. The county auditor must enforce the provisions of this subdivision... For purposes of this subdivision, qualified improvements of a street are limited to (1) construction or opening of a new street, (2) relocation of a street, and (3) substantial reconstruction or rebuilding of an existing street. The City or a property owner must improve parcels within District No. 12 by approximately May, 2001. Subsection 13 -17. Use of Tax Increment The City hereby determines that it will use 100 percent of the captured net tax capacity of taxable property located in District No. 12 for the following purposes: • I . to pay the principal of and interest on bonds used to finance a project; 2. to finance, or otherwise pay the capital and administration costs of the Development District No. 4 pursuant to the M.S., Sections 469.124 to 469.134; 3. to pay for project costs as identified in the budget; 4. to finance, or otherwise pay for other purposes as provided in M.S., Section 469.176, Subd. 4, 5. to pay principal and interest on any loans, advances or other payments made to the City or for the benefit of Development District No. 4 by the developer: 6. to finance or otherwise pay premiums and other costs for insurance, credit enhancement, or other security guaranteeing the payment when due of principal and interest on nix increment bonds or bonds issued pursuant to the Plan or pursuant to M.S., Chapter 462C and M.S.. Sections 469.152 to 469.165, or both; and 7. to accumulate or maintain a reserve securing the payment when due of the principal and interest on the tax increment bonds or bonds issued pursuant to M.S., Chapter 462C and M.S., Sections 469.152 to 469.165. or both. These revenues shall not be used to circumvent any levy limitations applicable to the City nor for other purposes prohibited by M.S.. Section 469.176, Subd. 4. Tax increments generated in Tax Increment Financing District No. 12 will be paid by McCleod County to the City of Hutchinson for the Tax Increment Fund of said District No. 12. The City will pay to the developer(s) annually an amount not to exceed an amount as specified in a developer's agreement to reimburse the costs of land acquisition, public improvements, demolition and relocation, site preparation, and administration. Ca, or Hutchmson Tax increment Finaneme Plan for Tnx Increment Financing Disimn No 12 1 i -H Remaining increment funds will be used for City administration (up to 10 percent) and the costs of public improvement activities outside District No. 12. Subsection 13 -18. Notification of Prior Planned Improvements The City shall, after due and diligent search, accompany its request for certification to the County Auditor or its notice of District No. 12 enlargement with a listing of all properties within District No. 12 or area of enlargement for which building permits have been issued during the eighteen (I8) months immediately preceding approval of the Plan by the municipality pursuant to M.S., Section 469.175. Subd. 3. The County Auditor shall increase the anginal value of District No. 12 by the value of improvements for which a building permit was issued. Pursuant to M.S., Section 469.177, Subd. 4, the City has reviewed the area to be included in Tax Increment Financing District No. 12 and found no parcels for which building permits have been issued during the 18 months immediately preceding approval of the Plan by the City. Subsection 13 -19. Excess Tax Increments Pursuant to M.S., Section 469.176, Subd. 2, in any year in which the tax increment exceeds the amount necessary to pay the costs authorized by the Plan, including the amount necessary to cancel any tax levy as provided in M.S.. Section 475.61, Subd. 3, the City shall use the excess amount to do any of the following: 1. prepay any outstanding bonds; 2. discharge the pledge of tax increment therefor; 3. pay into an escrow account dedicated to the payment of such bond; or 4. return the excess to the County Auditor for redistribution to the respective taxing jurisdictions in proportion to their local tax rates. In addition, the City may, subject to the limitations set forth herein, choose to modify the Plan in order to finance additional public costs in District No. 12 or Development Distract No. 4. Subsection 13 -20. Requirements for Agreements with the Developer The City will review any proposal for private development to determine its conformance with the Modified Development Program and with applicable municipal ordinances and codes. To facilitate this effort, the following documents may be requested for review and approval_ site plan, construction, mechanical, and electrical system drawings, landscaping plan. grading and storm drainage plan, signage system plan, and any other drawings or narrative deemed necessary by the City to demonstrate the conformance of the development with city plans and ordinances. The City may also use the Agreements to address other issues related to the development. Pursuant to M.S., Section 469.176, Subd. 5, no more than 10 percent, by acreage, of the property to be acquired in District No. 12 as set forth in the Plan shall at any time be owned by the City as a result of acquisition with the proceeds of bonds issued pursuant to M.S.. Section 469.178, without the City having, prior to acquisition in excess of 10 percent of the acreage, concluded an agreement for the development of the property acquired and which provides recourse for the City should the development not be completed. Subsection 13 -21. Assessment Agreements Pursuant to M.S.. Section 469177. Subd. 8, the City may enter into an agreement in recordable form with the Cav of Hutchinson T: Increment Fntmiente Plan for I ax Inerenunt Financing Dwricl No 12 13-9 developer of property within District No. 12 which establishes a minimum market value of the land and completed improvements for the duration of District No. 12. The assessment agreement shall be presented to the assessor who shall review the plans and specifications for the improvements constructed, review the market value previously assigned to the land upon which the improvements are to be constructed and, so long as the minimum market value contained in the assessment agreement appear, in the judgment of the assessor, to be a reasonable estimate, the assessor may certify the minimum market value agreement. Subsection 13 -22. Administration of Tax Increment Financing District No. 12 Administration of District No. 12 will be handled by the City Administrator of the City of Hutchinson. Subsection 13 -23. Financial Reporting Requirements A. Filing with State Auditor, County Auditor, County Board and School Board: Pursuant to M.S., Section 469.175, Subd. 5, the City must file an annual disclosure report for all tax increment financing districts, including District No. 12. The report shall be filed with the County Board, County Auditor, School Board, and the State Auditor on or before July 1 of each year. The report to be filed by the City shall include the following information: 1. the amount and source of revenue in the tax increment account; 2. the amount and purpose of expenditures from the account; 3. the amount of any pledge of revenues, including principal and interest, on any outstanding bond indebtedness; 4. the original net tax capacity of District No. 12; 5. the captured net tax capacity retained by the City 6. the captured net tax capacity shared with other taxing districts; 7. the tax increment received; and 8. any additional information necessary to demonstrate compliance with the tax increment financing plan. B. Newspaper Statement: M.S.. Section 469.175, Subd. 5 also provides that an annual statement shall be published in a newspaper of general circulation in the City showing: 1. the tax increment received and expended in that year, 2. the original net tax capacity, 3. captured net tax capacity, 4. amount of outstanding bonded indebtedness, 5. the amount of District No. 12's increment paid to other governmental bodies, 6. the amount paid for administrative costs, 7- the sum of increments paid, directly or indirectly, for activities and improvements located outside of District No. 12, and 8. any additional information the City deems necessary. C. State Auditor filing for District No. 12: Pursuant to M.S., Section 469.175, Subd. 6, the City must annually submit to the State Auditor, on or before July 1, a financial report which shall: 1. provide for full disclosure of the sources and uses of the public funds in District No. 12; 2 permit comparison and reconciliation with the City's accounts and financial reports; 3_ permit auditing of the funds expended on behalf of District No. 12 or that is funded in part ( ry of Hurchmson Tax Incremem FSnaneag Plan for Tax Incremem Financing Diirncl No 12 I3 -10 or whole through the use of a development account funded with tax increments from other • tax increment districts or with public money; and 4. be consistent with generally accepted accounting principles. The financial report must also include the following: I . the original net tax capacity of District No. 12; 2. the captured net tax capacity of District No. 12, including the amount of any captured net tax capacity shared with other taxing districts; 3. the amount budgeted under the Plan, and the actual amount expended for, at least, the following categories (for the reporting period and for the duration of District No. 12): a. acquisition of land and buildings through condemnation or purchase: b. site improvements or preparation costs; C. installation of public utilities, parking facilities, streets, roads, sidewalks, or other similar public improvements; d_ administrative costs, including the allocated cost of the city; e. public park facilities, facilities for social, recreational, or conference purposes, or other similar public improvements; and 4. the total costs of the property to the City and the price paid the developers (for properties sold to developers); 5. the amount of increments rebated or paid to developers or property owners for privately financed improvements or other qualifying costs, other than those reported under clause (3), that were issued on behalf of private entities for facilities located in District No. 12. D. State Auditor filing for all Tax Increment Financing Districts: Pursuant to M.S., Section 469.175, Subd. 6a, the City must also annually report to the State Auditor before or on July I of each year the following amounts for the entire City: 1. the total principal amount of nondefeased bonds that are outstanding at the end of the previous calendar year; and 2. the total annual amount of principal and interest payments that are due for the current calendar year on: (i) general obligation tax increment financing bonds and (it) other tax increment financing bonds; and for each tax increment financing district within the City: 1. the type of tax increment financing district; 2. the date on which the district is required to be decertified; 3. the amount of any payments and the value of in -kind benefits, such as physical improvements and the used of building space, that are financed with revenues derived from increments and are provided to another governmental unit (other than the municipality) during the preceding calendar year; 4. the tax increment revenues for taxes payable in the current calendar year; 5. whether the tax increment financing plan or other governing document permits increment revenues to be expended outside of each district; 6. any additional information that the State Auditor may require. Copies of this report must also be provided to the county and school district boards. • CIry of Hmchlnson Tax Increment Financing Plop tor Tai Increment Financing Distno No. 12 13 -11 Subsection 13 -24. Municipal Approval and Public Purpose The reasons and facts supporting the finds for the adoption of the Tax Increment Financing Plan for District No. 12 as required pursuant to M.S.. Section 469.175. Subd. 3 are as follows: Finding that the District No, 12 is an economic development district as defined in M.S.. Section 469.174, Subd. 12. District No. 12 is in the public interest because it will discourage commerce, industry, or manufacturing from moving their operations to another state or municipality; it will result in increased employment in the state, and it will result in preservation and enhancement of the tax base of the state. Finding that the proposed development, in the opinion of the Citv Council, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable fiaure and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of District No. 12 permitted by the Plan. Due to the high cost of development on the parcel and the cost of financing the proposed improvements, this project is feasible only through assistance, in part, from tax increment financing. A comparative analysis of estimated market values both with and without establishment of Tax Increment Financing District No. 12 and the use of tax increments has been performed as described above. If all development which is proposed to assisted with tax increment were to occur in District No. 12, the total increased market value would be up to $310,000. It is the Council's finding that no development with a market value of greater than $198,100 would occur without tax increment assistance in this district within 9 years. This finding is based upon evidence from general past experience with the high cost of site and public improvements in the general area of District No. 12 (see Cashflow in Appendix Q. Finding that the Tax Increment Financing Plan for District No. 12 conforms to the general plan for the development or redevelopment of the ntuurcipality as a whole. The Plan was reviewed by the Planning Commission on May 20, 1997. The Planning Commission found that the Plan conforms to the general development plan of the City. 4. Finding that the Tax Increment Financing Plan for District No. 12 will afford maximum opportunit , consistent with the sound needs of the Cit_v as a whole, for the development of Development District No. 4 by private enterprise_ The project to be assisted by Tax Increment Financing District No. 12 will result in increased employment in the City and the State of Minnesota, increased tax base of the State, and add a high quality development to the City. Additional findings are set forth in the Authorizing Resolution of the City. Subsection 13 -25. Other Limitations on the Use of Tax Increment General Limitations All revenue derived from tax increment shall be used in accordance with the 0 Clry of Hulchmson Tax Incremem Hnancine Plan tar Tax Incmmenl Fln:mnns Dwtrncl No 12 13_12 Plan. The revenues shall be used to finance, or otherwise pay the capital and administration costs of the Development District No. 4 pursuant to the M.S.. Sections 469.124 to 469.134; These revenues shall not be used to circumvent existing levy limit law. No revenues derived from tax increment shall be used for the acquisition, construction, renovation. operation or maintenance of a building to be used primarily and regularly for conducting the business of a municipality, county, school district, or any other local unit of government or the state or federal government. This provision shall not prohibit the use of revenues derived from tax increments for the construction or renovation of a parking structure, a commons area used as a public park or a facility used for social, recreational or conference purposes and not primarily for conducting the business of the municipality. 2. Pooling Limitations At least 80 percent of tax increments from District No. 12 must be expended on activities in District No. 12 or to pay bonds, to the extent that the proceeds of the bonds were used to finance activities within said district or to pay, or secure payment of, debt service on credit enhanced bonds. Not more than 20 percent of said tax increments may be expended, through a development fund or otherwise, on activities outside of District No. 12 except to pay, or secure payment of, debt service on credit enhanced bonds. For purposes of applying this restriction, all administrative expenses must be treated as if they were solely for activities outside of District No. 12. 3. Five Year Limitation on Commitment of Tax Increments Tax increments derived from District No. 12 shall be deemed to have satisfied the 80 percent test set forth in paragraph (2) above only if the five year rule set forth in M.S., Section 469.1763, Subd. 3, has been satisfied; and beginning with the sixth year following certification of District No. 12, 80 percent of said tax increments that remain after expenditures permitted under said five year rule must be used only to pay previously commitment expenditures or credit enhanced bonds as more fully set forth in M.S., Section 469.1763, Subd. 5. • Subsection 13 -26. State Tax Increment Financing Aid Pursuant to M.S.. Section 273.1399, for tax increment financing districts for which certification was requested after April 30, 1990, a municipality incurs a reduction in state tax increment financing aid (RISTIFA) applied to the municipality's Local Government Aids (LGA) first and, Homestead and Agricultural Aid (HACA) second, in an amount equal to a formula based upon the equalized qualifying captured tax capacity (QCTC) of District No. 12. Pursuant to M.S., Section 273.1399, Subcl. 6, the City may choose an option to the LGA -HACA penalty. District No. 12 is exempt from the LGA -HACA reduction if the City elects to make a qualifying local contribution at the time of approving the Plan. To qualify for the exemption in each year, the City must make a qualifying local contribution to the project of a certain percentage. The local contribution for an economic development district is 10 percent. The maximum local contribution for all districts in the City in any year is limited to two percent of the City's net tax capacity, after which point the City must make an additional contribution equal to the lesser of (a) 0.25 percent of the City's net tax capacity or (b) 3 percent of tax increment revenues for that year. The amount of the local contribution must be made out of unrestricted money of the City , such as the general fund. a property tax levy, or a federal or state grand -in -aid which may be spent for general government purposes. The local contribution may not be made, directly or indirectly, with tax increments or developer payments. The local contribution must be used to pay project costs and cannot be used for general government Purposes. • The City elects to make the annual local contribution to the project to exempt itself from the LGA- Cary or Hutchinson Tax Increment Finaneme Plan forTax Increment Financing District No 1 - 13-11 HACA penalty. The City will pay for costs of the project described in this Plan, in an amount equal to 10 percent of annual tax increment for District No. 12. subject to the limitations described above, in any year in which such amount exceeds 2 percent of the City's net tax capacity. Such contribution may be in form of either lump sum or annual payments (in addition to tax increment payments) towards costs identified in this Plan or other costs related to that development_ The contribution may also be made in the form of public improvements financed by the City or other unit of government with unrestricted funds. Subsection 13 -27. Countv Road Costs Pursuant to M.S., Section 469.175, Subd. ]a, the county board may require the City to pay for all or part of the cost of county road improvements if, the proposed development to be assisted by tax increment will, in the judgement of the county, substantially increase the use of county roads requiring construction of road improvements or other road costs and if the road improvements are not scheduled within the next five years under a capital improvement plan or other county plan. In the opinion of the City and consultants, the proposed development outlined in this Plan will have little or no impact upon county roads. If the county elects to use increments to improve county roads, it must notify the City within thirty days of receipt of this Plan. Subsection 13 -28. Economic Develop and Job Creation To the extent applicable, the City agrees to comply with M.S., Section 1161991, which states that a business receiving state or local government assistance for economic development or job growth purposes, including tax increment financing, must create a net increase in jobs and meet wage level goals in Minnesota within two years of receiving assistance (See Appendix D). Subsection 13 -29. Summary The City of Hutchinson is establishing Tax Increment Financing District No. 12 to preserve and enhance the tax base, and provide employment opportunities in the City. The Tax Increment Financing Plan for Tax Increment Financing District No. 12 was prepared by Ehlers and Associates, Inc., 2950 Norwest Center, 90 South Seventh Street, Minneapolis, Minnesota 55402 -4100, telephone (612) 339 -8291. CaY of Hulchmson Tu Increment Financing Plan for Tac Increment Financing Dismei No. 12 IJ -W APPENDIX A • BOUNDARY MAPS OF DEVELOPMENT DISTRICT NO. 4 AND TAX INCREMENT FINANCING DISTRICT NO. 12 0 APPENDIX A -] TAX INCREMENT FINANCING DISTRICT NO. 12 CITY OF HU^ MCCLEOD STATE OF MINNESOTA APPENDIX B • LEGAL DESCRIPTION OF PROPERTY TO BE INCLUDED IN TAX INCREMENT FINANCING DISTRICT NO. 12 Parcel Numbers 23 -257 -0020 • u APPENDIX B -I APPENDIX C ESTIMATED CASH FLOW FOR TAX INCREMENT FINANCING DISTRICT NO. 12 • 0 APPENDIX C -1 05x1 ; City of Hu,cmneen - Plbetc Soeaeleee Mfg Inc Prole,) Page 1 T.I.F. CASH FLOW ASSUMPTIONS - LOCAL MATCH Inflation Rate. 0,0000% -- Pay -AS- You -Go Interest Rate: 5.500% Tax Extension Rate: 1 468770 Pay 97 BASE VALUE INFORMATION Markel Tax Tax Payable P.I.D. Descri _ Value R ate Capacty V ear 23 = 257 -0020 Block 1 Lot 2 - Hutchinson Intl. Pa 15 500 E%emp 0 Pay 96 (Last available value) Total 15,500 0 Tax Capacity when Parcel 1s Cel letl = 713 ORIGINAL TAX CAPACITY INFLATION RATE Parcel Value Parcel Values 5 Year Aga 10,200 Parcel Values Current - 15,500 5.300 Original Tax Capaary Inflation Rate: 110.39% PROJECT VALUE INFORMATION Type of Development Industrial Total Sq. Ft. of Project 15,000 Market Value per Sq- FL 521.69 Estimated Market Value (land and building): 325,400 Pay 99 Project Class Rate: First 100,000 3.0000 Local Match Over 100,000 4.601 Captured Estimated Tan Capacity (assumes MV taxed at 3.0% and 4, 6%): 13,368 Pay 99 Project Total Taxes 19.635 Taxes Per Sq. FL 51.31 TAX INCREMENT CASH FLOW at BUT I F_O ANALYSIS Base Project Captured Semi-Annual Admen. Semi- Annual Sem�Annual Local Match _ Taxable Captured CTC as % PERIOD BEGINNING Tax Tax Tax Gross Tax at Net Tax Present at PERIOD ENDING 16,670,618 Yrs. Mth. Yr- Capacity Capacity Capmcliy Increment 10.01% Increment Value 10.00% Yrs. M1h. Yr. 0.0 02 -01 1997 713 0 0 0 0 0 0 0 0.0 08-01 1997 0.0 08-01 1997 713 0 0 0 0 0 0 0 0.0 02 -01 1998 0.0 02 -01 1998 787 0 0 0 0 0 0 0 0.0 08-01 1998 0.0 08-01 19M 787 0 0 0 0 0 0 0 0.0 02 -01 1999 100.00% 02 -01 1999 869 13,368 12,500 9,179 (919) 8,261 7,213 918 0.5 08-01 1999 06-01 1999 869 13,368 12,500 9,179 (919) 8,261 14,232 916 1.0 02 -01 2000 02 -01 2000 959 13,368 12,409 9,113 (912) 8,201 21,015 911 1.5 08-01 2000 1.5 OB-01 2000 959 13,368 12,409 9,113 (912) 8,201 27,616 911 2.0 02 -01 2001 2.0 02 -01 2001 1,059 13,368 12,310 9,040 (905) 8,135 33,989 904 2 -5 08-01 2001 2.5 1 2001 1,059 13,368 12,310 9,040 (905) 8,135 40,191 904 3.0 02 -01 2002 3.0 02 -01 2002 1,169 13,368 12,199 8,959 (B97) 8,062 46,173 8% 3.5 08-01 2002 3.5 08-01 2002 1,169 13,368 12,199 8,959 (897) 8,062 51,995 8961 4.0 02 -01 2003 4.0 02 -01 2003 1,290 13,368 12,078 8,870 (888) 7,982 57,605 887 4.5 08 -01 2003 4.5 08-01 2073 1,290 13,368 12,078 8,870 (888) 7,982 63,065 887 5,0 02 -01 2004 5.0 02 -01 2004 1,424 13,368 11,944 8,771 (878) 7,893 68,319 877 55 08 -01 2004 5.5 08 -01 2004 1,424 13,368 11,944 8,T71 (878) 7,893 73,433 8771 6.0 02 -01 2005 6.0 02 -01 2005 1,573 13,368 11,796 8,663 (867) 7,796 78,348 8661 6.5 08 -01 2005 6.5 08 -01 2005 1,573 13,368 11,796 8.663 (867) 7,796 83,1321 8661 7A 02 -01 2006 TO 02 -01 2006 1,736 13.368 11,632 8,543 (855) 7,688 87,7241 8541 7.5 08 -01 2006 T5 09 -01 2006 1,736 13,368 11,632 8,543 (855) 7,688 9 8541 8.0 02 -01 2007 8,0 02 -01 2007 1,916 13,368 11,452 8,410 (842) 7,560 96,4731 841 8.5 08 -01 2007 8.5 08 -01 2007 _ 1,916 13,368 1 1 452 8.410 (842) 7,568 '.00,6401 841 9.0 02 -01 2008 Totals - 159.097 (15926) 143, 159101 Present Values _ 111.835 (11 100.640 _ 1 11.1831 BUT I F_O ANALYSIS FISCAL IMPLICATI _ r Taxiig _ Taxable Captured CTC as % (Current Market Value - Est. 15.500 Jurlsdlction Tax CapaaN Tax Capacity of Capacity New Markel Value - Est. 3 25.400f McLeod County 16,670,618 12,655 0.08% Difference 309.900 Hutchinson 6,641,048 12,655 0.19% Present Value Of Tax Increment 111,835 ISD 423 8.746.049 12,655 014% Difference 198.065 V alue Likely to Occur Wilhoul TIF is c 198,0651 Taxing Local Tax Tax Rate as Captured _ ' Jurisdictio n Rate % of Total Tax Capacity T axes 'McLeod County 43.2060% 29,4246 12,655 5.4681 Hutchinson 37.6710% 25.65% 12,655 4,767 ISO 423 Other 65.7930% 0 .2070% 44.79% 0.14% 12,655 _ 12,655 8,3261 261 '�l el _ 146.8770°.6 100.00% _ 12,655 185881 Frepared by Ehlers Ina PLASTIC2 .WR4 APPENDIX D MINNESOTA BUSINESS ASSISTANCE FORM (MINNESOTA DEPARTMENT OF TRADE AND ECONOMIC DEVELOPMENT) APPENDIX D] tt`l NESOp �Q 'I —Trade & Econonuc Develo February 17, 1997 To all Minnesota state and local government agencies: M.S. 116J.991 requites a business receiving state or local government assistance to create a net increase in jobs in Minnesota within two years of receiving assistance and meet wage level and job creation goals established by the funding agency. Businesses not meeting these conditions must repay the assistance at the terms negotiated by the business and the government agency administering the assistance. Until the wage and job goals are met, each government agency that works with these businesses is mandated to annually report the goals and any progress toward these goals to the Minnesota Department of Trade and Economic Development (DIED). The statute does not stipulate what those goals should be, but does requite goals to be established by the government agency for each individual project. "Business assistance" refers to any business activity within a tax increment district and any business grant or business loan using state or local dollars in excess of $25.000. While not defined in the statute, our interpretation is that this would include grants, loans, interest subsidies. tax increment financing (ITF), or any public monies directly benefiting a business and given for economic development or job growth purposes. In order to simplify data collection, please use the Minnesota Business Assistance Form (reverse side). The form should be completed by government entities for every business assistance package they adminster. All financial assistance agreements signed during the 19% calend:u year must be repotted, regardless of when the assistance was awarded. The forme must be submitted to DIED by April 1. 1997 and submitted annually (including any agreements reached between July I, 1995 and December 31. 1995) until DTED receives the documentation showing the business has achieved the wage and job creation goals. This form does nor need to be submitted if assistance has not been provided to a business. � Sincerely. I CommiN�toner Minnesota Statutes 116J.991: A business that receives state or 6n'al ,grn'enrmetn osustance for economic development or job growth purposes must create a net increase in jobs in Minnesota it ahw nvo nears of receiving the assistance. The government agency providing the acsi tam a niu.st establish wage level and job creation goals to be met by the business receiving the assistance. A business then lails w meet the goals num repay the assistance to the government agency. Each govenmtent agency ntn.si report the it rice and job ,goals and the results for each project in achieving those goals to the department oJ'trade and econonuc development- The department shall compile and publish the results of the repori.s for the previous calendar rear bi June I oI each rear. The reports of the agencies to the department and the compilation report of the department .dull be made mailable to the public. • For the purposes of this section, "assistance " means d grant or loan in excess of $25,000. or tax . increment financing. — 500 Aletro Square. 111 7th Place Ea st, Saint Paul. Minnesota 55101 -2146 USA 612 -197 -1291 • 800 -657 -3858 • Fax 612- 296 -1772 • TTY/TDD 800 -627 -3529 1%' Ahed.state.mn.us I _ . I � Sop 9 —TYade & — Development Minnesota Business Assistance Form* Please type or print in dark ink. 1. Funding government agency name 2. Agency street address 3. City 4. Zip Code 5. Phone number (area code) 6. Fax number (area code) 7. Contact name I 8. Type of government agency City _County _Regmpal _Suite _ Other (P kaic indicate) 9. Name of TIF district (if applicable) 10. Name of business receiving assistance i 11. Date of business avisfanoe agreement 12. Job creation goals for business receiving assistance 13. Hourly wage level goals for business receiving asdstance i 14. Actual Jobs created since business received a %sntencc i 15. Actual average hourly wage paid to employes hired since business received assistance 16. Last date actual wage and job creation levels doc un enied - - ' Please complete one form for each business project your agency assisted with $25,090 or more in public funds. Do not submit this form if assistance has not been provided to a business. - Please send completed form[ annualh by April I to: Minnesota Business Assistance Form — AEO Minnesota Department of Trade and Economic Development Analysis and Evaluation Office 500 Metro Square 121 East 7th Place St. Paul, Minnesota 55101 or fax report to: (612) 215 -3941 For information, call: (612) 297 -2335 or 1- 800 -657 -3858 0 0 `J 0 FIRE CHIEF 1996 SALARY Population City Salary # of Employees Supervised 3941 Ely $ 31,428 31 7481 Little Falls 37,005 30 7808 International Falls 46,900 40 8008 Thief River Falls 42,444 6 8144 Waseca 42,455 2 8175 Crookston 40,663 7 8884 East Grand Forks 48,468 11 9283 Virginia 50,571 21 11162 Bemidji 36,528 - - -- 12405 Elk River 57,782 - - -- 12468 Fergus Falls 45,900 1 12515 Brainerd 48,603 7 15561 Redwing 49,616 26 9 _0 FIREFIGHTER 1996 SALARY Population City Salary # of Employees 7481 Little Falls $ 12.10/hour 1 7808 International Falls 16.31/hour 4 8008 Thief River Falls 14.57/hour 6 8175 Crookston 9.96/hour 7 8884 East Grand Forks 14.53/hour 6 9283 Virginia 10.75/hour 14 11055 Cloquet 11.97/hour 7 11162 Bemidji 12.42/hour 4 12515 Brainerd 11.75/hour 6 15561 Redwing 11.02/hour 14 *Note: Most of these are for 2756 hours per year. n 10 • 0 St. James 4,300 65 34 1 No No No Montevideo 5,500 65 35 0 No No No Detroit Lakes 7,200 180 30 2 No No No Waseca 8,500 150 35 0 Yes Yes - 3 No Hutchinson 13,000 340 40 4 No No 1/2 Time Fergus Falls 13,000 130+ 38 4 Yes Yes - 1 No - New Ulm 13,800 120 40 0 No No Yes with Building Dept Red Wing 16,000 2600 ALS 56 1-2 Yes Yes - 26 Yes Northfield 16,000 420 BLS 28 0 1/2 No 1/2 Fairbult 20,000 750 BLS 37 1-2 Yes Yes - 9 No Owatonna 20,500 250 34 1 Yes Yes - 7 No Willmar 23,000 325 42 1 No No Yes 0 0 MEMO To: Mayor and Council From: Brenda Ewing,'1luman Resources Coordinator Subject: 1998 Department Plans Date: April 8, 1997 Attached are additional departmental objectives that were not included in the document forwarded with your current Council packet. Please insert them into the appropriate section. If you have any questions, please contact me. Enc. 0 E ��n i� Monday, April 07, 1997 DEPARTMENT: PARK REC ADMIN • OBJECTIVE : Utilize eight measurable growth justifiers for budget development. EX PLUS NO EX PLUS OBJ PRIORITY SEQUENTIAL 1 1 Identity indicators P I Y STATUS PRIORITY PERSONNEL DATE STRATEGY: Gather data that is included in the 1997 annual report by 1/16/98. ACTIVE 1/16/98 STRATEGY: Develop conclusions for 1999 budget development by 511/98. ACTIVE 5/1/98 STRATEGY: Revise service level based on budget adopted by 12131/98. ACTIVE 12/31/98 • E Monday, April 07, 1997 DEPARTMENT: PARKS • OBJECTIVE : Review and recommend revisions to the Parkland Dedication Ordinance for Council approval by 12/31/98. PLUS NO I EX PLUS OBJ 1PRIORITYISEQUE NTIAL F ' CDV -2 Implement planning I P I Y STATUS PRIORITY PERSONNEL DATE STRATEGY: As part of the comprehensive planning review, submit recommendations to the PRCE Park Standing Committee by 2/27/98. ACTIVE 2/27198 Seek approval of revisions to the Parkland Dedication Ordinanace by the PRCE Advisory Board by 3/5/98. ACTIVE 3/5/98 STRATEGY: Submit approved revisions of the Parkland Dedication Ordinance to the City Council by 12/31/98 for implementation. ACTIVE 12/31198 • Monday, April 07, 1997 DEPARTMENT: CIVIC ARENA • OBJECTIVE : Development of an operational manual for ice arena operations that will enhance effeciency by 10/1/98. STATUS PRIORITY PERSONNEL DATE STRATEGY: Review current operational use of lights, heat, dehumidification, refrigeration and Ice resurfacer. Create baseline data of current costs by 3131/98. ACTIVE 3/31/98 STRATEGY: to Development rnted to h e RCE Park operational anding Committee by 8 019 features ACTIVE 8130198 STRATEGY: Implement policies approved by PRCE Advisory Board beginning with to fall season 10/12!98. ACTIVE 10/12/98 • E Tuesday, April 08, 1997 DEPARTMENT: EMERGENCY • OBJECTIVE: Reduce the distance from outdoor warning sirens to any residence location in city to less than one mile by 4/15/98. EX PLUS NO EX PLUS BJ 1PRIORlTY SEQUENTIAL 1 CDV -2 Implement planning 11 P N STATUS PRIORITY PERSONNEL DATE STRATEGY: Identify each new development in city by 1/15/98. ACTIVE ESSENTIAL S. Madson 1/15/98 STRATEGY: Determine new locations of outdoor warning sirens by 2/1/98. ACTIVE ESSENTIAL S. Madson 211/98 STRATEGY: Draft specifications and obtain bids for additional outdoor warning sirens by 3/1/98. ACTIVE ESSENTIAL S. Madson 3/1/98 • • Tuesday, April 08, 1997 DEPARTMENT: EMERGENCY • OBJECTIVE: Install one laptop computer in mobile command post to enhance management of emergency operations. EX PLUS NO I EX PLUS OBJ PRIORITY SEQUENTIAL 1 2 CDV -2 Implement planning OEF -1 Implement ESSA P P N N STATUS PRIORITY PERSONNEL DATE STRATEGY: Identify one appropriate emergency management software package by 4/1/98. ACTIVE ESSENTIAL S. Madson 4/1/98 STRATEGY: Draft specifications for one laptop computer to operate software package by 5/1/98. ACTIVE ESSENTIAL S. Madson 511/98 STRATEGY: Implement system by 6/1/98. ACTIVE ESSENTIAL S. Madson 611/98 • r � U Tuesday, April 08, 1997 DEPARTMENT: POLICE • OBJECTIVE : Expand training opportunities involving current technology to reduce entry error rate by 50 %. EX PLUS NO I EX PLUS OBJ JPRIbRRITY EQUIE NTIAL 1 OE -1 Implement ESSA 11 P N STATUS PRIORITY PERSONNEL DATE STRATEGY: Provide calsses to enhance employee capabilities on current LOGIS records system by 611/98. ACTIVE ESSENTIAL S. Madison 6/1198 STRATEGY: Provide classes to enhance employee capabilities on current LOGIS computer aided dispatch system by 611/98. ACTIVE ESSENTIAL S. Madison 6/1198 STRATEGY: Provide classes to enhance employee capabilities on criminal justice information system by 9/1/98. ACTIVE ESSENTIAL S. Madson 9/1/98 0 Tuesday, Apnl O8, 1997 DEPARTMENT: POLICE • OBJECTIVE : Implement Mobile Incident Reporting System to reduce clerical support by Communications Specialists by 50 %. EX PLUS NO EX PLUS OBJ RIORITY1 SEQUENTIAL 1 EF -1 Implement ESSA P N STATUS PRIORITY PERSONNEL DATE STRATEGY: Identify software needs by 4/1/98. ACTIVE ESSENTIAL S. Madison 4/1/98 STRATEGY: Fiedl test software by 611/98. ACTIVE ESSENTIAL S. Madison 6 /1 /98 STRATEGY: Fully implement system by 10/1/98. ACTIVE ESSENTIAL S. Madison 0 10/1198 Tuesday, April 08, 1997 DEPARTMENT: POLICE • OBJECTIVE : Install CCTV system on Main Street by 611/99 to reduce criminal behavior by 50 %. EX PLUS NO EX PLUS OBJ PRIORITY1 SEQUENTIAL 1 CUS -1 Increase satisfaction I P I N STATUS PRIORITY PERSONNEL DATE STRATEGY: Study capabilities of CCTV systems by 10/1/98. ACTIVE ESSENTIAL S. Madson 10/1/98 0 Tuesday, April 08, 1997 DEPARTMENT: POLICE • OBJECTIVE: Upgrade computer software to allow 100% compatibility between city departments by 6/1/98. EX PLUS 0 11 EX PLUS OBJ PRIORITY SEQUENTIAL 1 EF-1 Implement ESSA P Y STATUS PRIORITY PERSONNEL DATE STRATEGY: Identify appropriate software by 4/1/98. ACTIVE ESSENTIAL S. Madison 4/1/98 STRATEGY: Purchase and install necessary hardware by 511/98. ACTIVE ESSENTIAL S. Madson 5/1/98 STRATEGY: Fully implement system by 611/98. ACTIVE ESSENTIAL S. Madson 6/1198 is • C. Implement Vehicle Management System (VMS) System will track maintenance and depreciated costs for all city vehicles. Will greatly help provide information for efficient replacement of City vehicles. Will also track maintenance needs fro vehicles and generate Work Orders (WO). Base system up and operating. Reporting and WO system being developed. ► Develop Partnership Opportunities at the HATS Facility Staff is working very well together. Hutchinson is in the process of being expanded into a Mn/DOT Hub, with a significant expansion of personnel, potentially providing much better customer service for the Hutchinson area. Other state and county expansion/consolidation is being reviewed ► Implement Pavement Management System (PMS) First phase is completed, second and final implementation phase to be completed this year. System will track the Pavement Quality Index (PQI) based on observed pavement cracks and stresses, and on non - destructive testing. Software will complete "what -if' scenario's for maintenance vs. reconstruction vs. PQI, and provide significant information for development of the CIP (Capital Improvement Plan). ► Restructure Public Works Department Two positions (Planning/Public Works Coordinator and Maintenance Operations Supervisor) are vacated. One position has. been filled in its new role (GIS Technician), while interviews continue on the Assistant Public Works Director (APWD), City Center Parks & Recreation Police Services ill Hassan Street SE 900 Harrington Street SIV '0 Franklin Street .SW Hutchinson..NN 55350.2522 Hutchinson. MN 55350 -3097 Hatchin.son. SIN 55350 -2464 3201587 -5151 X320),W_1975 t 0) 587 -2112 Fax (320) 234 -1241) Fax !330)134 -1240 �_ 1 ax , 310) 587 -6127 - P rinted on recycled paper - ► Review of Public Works Operations Additional review of Central Garage, Cemetery and Street Department operations will commence once the new APWD is on- board. ► Storm Water Utility Fund Proposing system to be set up within the next three months. Will utilize GIS and water billing system to collect user fees for storm water resource construction and management. This could include pond construction and maintenance, storm sewer maintenance and replacement, street sweeping, etc.. A portion of these funds could help offset tax increases. Barr Engineering will present potential scenario's to the City Council. ► Improve Visibility of Traffic Control and Location Signing Larger, more reflective signing is being placed on Collector and Arterial routes. 1997 PROJECTS Bluff Street Bridge: Improvements are substantially completed and open. Landscaping and other minor improvements to be completed within a month or so. Luce Line Trail: Work to commence by end of the month. 5th Avenue Bridge and Roadway: Work projected to start in August, completed in 1998. Project includes coordinated work with Dakota Rail and 3M. Crow River Pedestrian Bridge: Construction this summer through funding from 3M. Will be located at site of old RR bridge by ShopKo. Downtown Traffic Turn Signals: Work includes left turn arrows at three intersections and the addition of Emergency Vehicle Preemption system. Will be completed about the end of July. _e AMERICAN LEGION HUTCHINSON POST NO. 96 • Hutchinson, Minnesota 55350 0 V Home of Company B 135th Infantry January 10, 1997 Hutchinson Mayor and City Council City Center Hutchinson, MN 55350 Dear Mayor and City Council Members: dPk 2 1 1997 C" )FHUIGHi : "ON The following organizations associated with The American Legion Post 96, Hutchinson, MN respectfully request that the City of Hutchinson consider a name change for 3rd Ave S. E. to Legion Lane for the one block in front of the Post. This would only result in probably two address changes for the postal department and would greatly honor these organizations so active in the community. Sincerely, i Commander, Post 96 1 c Pearl S ale, ,A/uxiill'nary President, Post 96 Lar,ry,Ardolf, Chef de Gare, Voiture 414, 40 & 8 I i 6r an hapeau, Voiture 414, 8 & 40 .. d' Dan Rueckert, Commander, Sons of the American Legion • 7-A. • ARNOLD, ANDERSON & DOVE PROFESSIONAL LIMITED LIABILITY PARTNERSHIP ATTORNEYS AT LAW DAVID B. ARNOLD STEVEN A. ANDERSON G. BARRY ANDERSON LAURA K. FRETLAND PAUL D. DOVE JANE VAN VALKENBURG RICHARD G. MCGEE CATHRYN D. REHER WALTER P. MICHELS, III 101 PARK PLACE HUTCHINSON. MINNESOTA 55350 -2563 (320) 587 -7575 FAX (320) 587 -4096 RESIDENT ATTORNEY G. BARRY ANDERSON IAL30 ADMITTED IN TE% l AND NEW YORK April 22, 1997 Mr. Gary D. Plotz City Administrator Hutchinson City Center III Hassan Street S.E. Hutchinson, Mn. 55350 Re: Hardee's Parking Lot Issues Our File No. 3188 -87001 4& Dear Gary: ^ 'iJ if HUTGk, . 7N OF COUNSEL ARTHUR L. DOTEN TERRI A. SLOMFELT 5881 CEDAR LAKE ROAD MINNEAPOLIS, MINNESOTA 55416 16121 545 -9000 FAX (612) 545 -1793 FAX (612)542 -9210 501 SOUTH FOURTH STREET PRINCETON, MINNESOTA 55371 (612) 3892214 FAX (612) 3895506 As I am sure you are aware, Hardee's has struggled for some time with issues of young people congregating in the areas that it controls for parking purposes along Glen Street. The police department has been summoned numerous times to deal with issues and the one stumbling block keeps popping up and that is that technically, although Hardee's maintains plows and plants this area, it is actually owned by the City. In order to prosecute violators for trespass, the property has to be under the control of the property owner. In order to deal with this problem effectively, I have suggested to Hardees that we enter into a franchise agreement that would provide that Hardee's would receive a franchise for the area in question from the City for a period of ten years in exchange for which Hardee's would maintain the area by keeping it free of snow, picking up fitter, providing landscaping services and so forth (all of which they are presently doing) and this would permit Hardee's to request citations from the police department for those individuals who are trespassing on property that it controls. As you know, our City Charter prohibits franchises for a period of time longer than ten years and I believe we will probably want to include some language in this grant of franchise giving the City to earlier terminate it if circumstances so dictate. 0 I am enclosing the original drawing of the Hardee's building and grounds which was given to me by Sue Hallahan, Hardee's general manager in this area. CERTIFIED AS A CIVIL TRIAL SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION "CERTIFIED AS A REAL PROPERTY LAW SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION � 'Mr. Gary D. Plotz April 22, 1997 • Page 2 I would ask that this matter be placed on the City Council agenda and if the City Council approves it, I will prepare the necessary ordinance for the second reading which would presumably occur at the second meeting in May. By carbon copy of this correspondence, I am requesting Larry Huhn provide me with a legal description of the area to be covered by the franchise no later than May 15, 1997 so that I can incorporate that language into our ordinance if the same receives approval at the first reading at the first meeting in May. Should you have any questions regarding any of the foregoing, please feel free to contact me. Thank you. Best regards. Very truly ARNOLD, EYZ &DOVE, PLLP C C/_ G. Barry erso� GB A CC Jim Marka Larry Huhn Sue Hallahan, Hardee's • \J s _ M =6 SIDI Y y I b I Ll. VNL b tn 4 ;I FHIRDEE'S /• � r r I II � o � , I ice^ I Iw cmr{{n 16[G11M v 1 oaten aun r� _ �f Y � rrs{fa - 4 JpXry41ln1 Il � (Mf0 SIFY I ..nrzo .nmis — g rlJ f113 iERIF O ,f r rncvc c.is °c U SITE P! aN HUTCHINS ❑N, NOR H - MN f r . CITY OF HUTCHINSON POLICE SERVICES TO: Mayor and Council FROM: Steve Madson, Director of Police /Emergency Management Services DATE: May 7, 1997 RE: Old Fire Station This memorandum will serve as a request to allow the police services /emergency management function to occupy the area of the old fire station which is currently being used by the Crow River Arts. As you are aware, the Crow River Arts currently has a lease with the city for use of a portion of the building. This lease may be terminated by six (6) months written notice (copy attached). Police/Emergency Management services would like to utilize the space the Crow River Arts is occupying. The utilization of this area would serve a dual purpose. First, with the • expansion of our Family Conferencing project, it is becoming apparent we need more room. The space available in the police building is not adequate to handle the size of some of the groups we are bringing together. Secondly, we no longer have usable space for a training or emergency operations center. Also, the locker room and offices can be utilized for evidence preparation and storage of equipment. I request authority to notify the Crow River Arts. Inc. that the City of Hutchinson intends to terminate the existing lease six months hence from official written notification. If approved, I will assume responsibility for all the necessary notifications. If you have any questions or concerns regarding this memorandum, please do not hesitate to contact me at your earliest convenience. /Ikg 97 -01 -0001 • `,, • AMENDMENT TO LEASE THIS AMENDMENT TO LEASE is entered into this 1st day of August, 1996, by and between the City of Hutchinson ( "Hutchinson ") and Crow River Arts, Inc. ( "CRA "). RECITALS: 1. Hutchinson and CRA are parties to a general Lease dated October 1, 1994 which Lease expires on December 31, 1996; 2. The parties hereto, for mutual advantage, desire to extend the Lease covering those certain premises located at 44 Washington Avenue West, Hutchinson, Mn. 55350; 3. The parties hereto have reduced their agreement to writing. FOR GOOD AND VALUABLE CONSIDERATION the receipt and • sufficiency of which are hereby acknowledged, the parties hereby agree as follows: 1. TERM. The Lease shall be for a tetm•of one (1) year beginning January 1, 1997 and continuing until December 31, 1997. Unless notice of termination is given pursuant to the terms and conditions hereof, the Lease shall automatically renew on an annual basis. The Lease will automatically terminate on December 31, 2006 regardless of whether notice has been given by any party and thereafter tenancy shall continue on a month to month basis. 3. NOTICE. Either party may terminate the Lease by giving six months written notice to the other party of the desire to terminate the Lease. Notice shall be given by the parties to the following addresses: 0 -1- TO THE CITY: City Administrator Hutchinson City Center 111 Hassan Street S.E. Hutchinson, Mn. 55350 With a copy to: G. Barry Anderson ARNOLD, ANDERSON & DOVE, PLLP 101 Park Place Hutchinson, Mn. 55350 TO CRA: Director Crow River Arts, Inc. 44 Washington Avenue West Hutchinson, Mn. 55350 4. INSURANCE. CRA has and shall continue to provide liability coverage in an amount and form satisfactory to the City for the space covered by the general Lease and this Amendment to Lease. 5. CONTINUATION. All other terms and conditions of the general Lease dated October 1, 1994 shall continue in full force and effect as if fully set out herein, including the provisions of the general Lease regarding the payment of rent. IN WITNESS WHEREOF the parties hereto have set their hands and seals the year and date first above written. CITY OF HUTCHINSON CROW RIVER ART INC. By: - By: - L4 //t� M yor Its President Attest: Gary D. ',Plot City Administrator • • -2- 0 0 • MAY 13 1997 r _ .F HUTCH, 'ON Mayor Marlin Torgerson Gary Plotz Hutchinson City Council 111 Hassan St. SE Hutchinson, MN 55350 PO Box 282 Hutchinson, MN 55350 (320) 587 -0899 Sue Garver - Ex.Director Crow River Arts, Inc. May 13, 1997 Dear Mayor Torgerson, Gary Plotz Council, and Hutchinson City On May 7, 1997, Steve Madson notified me that he would be asking City Council to discontinue the lease currently held by Crow River Arts, Inc. I was unaware that this would be presented on the May 13th agenda until Noon, May 12th. Although we are aware of the Police Department's need for more space, due to the unexpected nature of our notification, I would like to request that either the City Council delays a decision until the next Council meeting to allow us more preparation time or that we get a 6 month extension on the lease until June 31. 1998. A move for the Art Center would be very disruptive for the following reasons: 1) It is a perfect location for Park Elementary School children to walk down as a class to see artwork of their peers or to walk down after school to participate in art classes. 2) Our membership drive is over May 31st. We have had no chance to contact our members about possible increased needs. Also, it would be a greater expense for us to recontact everyone. 3) We currently occupy a space of nearly 2,000 square feet and have recently purchased a trapezoidal stage 7'x7'x2l'. It would be difficult to find a comparable space to maintain our current programs under the current agreement. 0 ! , 0 9) Community visual artists would not have a public forum in which to display their artwork. 5) 25 members of the Community Choir would be displaced midseason. 6) Two Spring theatrical productions would be displaced mid - season. As per our request, a 6 month extension of the lease would give The Art Center the following advantages: 1) Allow time for the Art Center to explore other options with help from The City. 2) Allow time for The Center to notify its members of the changes and needs via newsletter and annual meeting. 3) Allow time to approach donors for 1998 budget planning. 9) Explore other grant opportunities. Thank you for your thoughtful consideration. Sincerely, Sue Gerver Ex,Director Crow River Arts, Inc. • 0 DOMINION BEST CHOICE REALTY 902 Hwy. 15 south, suite 100 Hutchinson, MN 55350 MLSft Business (320) 587 -4242 (320) 8646766 FAX (320) 587 -3992 May 9, 1997 Mayor Marlin Torgerson and City Council of Hutchinson, Minnesota City Hall Ill Hassan Street Southeast Hutchinson. Minnesota 55350 Dear Mayor Torgerson, is Jim Marka of Hutchinson's Building Department informed me that it was necessary to write to you requesting street lighting for the townhomes located at 1230 -1280 Bradford Street Southeast and 15 -65 Orchard Avenue South- east in Hutchinson. I do not know exactly what this entails, however, the people living in that area do need street lights. Please advise me as to what information you require so it can be provided and the lighting issue is expedited. Thank you and I wait to hear from you soon. Sincerely David W. Broil • "Pursuinq A spirit Of Excelrence" I —A • DAVID B. ARNOLD' STEVEN A. ANDERSON G. BARRY ANDERSON' LAURA K. FRETLAND PAUL D. DOVE „ANE VAN VALKENBURG RICHARD G. MCGEE CATHRYN O. REHER WALTER P. MICHELS. III 1 ALSO ADMITTED IN TE% $ AND N" YORK Mr. Gary D. Plotz City Administrator Hutchinson City Center 111 Hassan Street S. E. Hutchinson, Mn. 55350 ARNOLD. ANDERSON & DOVE PROFESSIONAL LIMITED LIABILITY PARTNERSHIP ATTORNEYS AT LAW 101 PARK PLACE HUTCHINSON. MINNESOTA S5350 -2563 (320) 587 -7575 FAX (320) 587 -4096 RESIDENT ATTORNEY G. BARRY ANDERSON Ic Hul - CHt nN OF COUNSEL ARTHUR L. DOTEN TERRI A. BLOMFELT 5661 CEDAR LAKE ROAD MINNEAPOLIS, MINNESOTA 55416 (612) 545 -9000 FAX 1612) 545 -1793 FAX 1612) 542 -9210 May 7, 1997 Re: Crow River Habitat for Humanity Assessment Agreement Our File No. 3188 -87001 II 501 SOUTH FOURTH STREET PRINCETON, MINNESOTA 66371 (612) 389 -2214 FAX (612) 389 -5506 I am enclosing herewith an Assessment Agreement, revised pursuant to discussions between myself and Diane Gordan who represents Habitat for Humanity, and I would ask that this agreement be placed on the cwt agenda at the next regularly scheduled City Council meeting. I do not have the legal description for the property in question and I presume Jahn Rodeberg would have that information Also, I need the amount of the assessments which will need to be set forth in paragraphs 2 of the Recitals and 1 of the Contract Provisions of this agreement The principal change requested by Attorney Gordon has to do with paragraph 3 of the Contract Provisions. Habitat was concerned that if Habitat had to take the property back by way of foreclosure or if the property were sold to some other parry, that such an event would not trigger the assessment provision. Clearly, once the property is improved and the taxes have been imposed the City's interest in reacquiring the property is minimal. I have clarified paragraph 3 and unless you hear from me otherwise, you can assume that it is also acceptable to Habitat. I believe this matter is now concluded. I assume City staff will see to the execution of the document and recording of the same. If this is not the case, please advise. Thank you. Best regards. Very truly & OOVE. PLLP G. Barry ANderson GBA:lm Enclosure • 7° A, CERTIFIED AS A CIVIL TRIAL SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION "CERTIFIED AS A REAL PROPERTY LAW SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION f ASSESSMENT AGREEMENT THIS ASSESSMENT AGREEMENT is made and entered into this _ day of May, 1997, by and between Crow River Habitat for Humanity, Inc., a Minnesota not for profit corporation and the City of Hutchinson, a Minnesota municipal corporation. RECITALS: 1. The City of Hutchinson has previously assessed certain real estate located in McLeod County, Minnesota, for certain municipal improvements. The property at issue is legally described as follows: 2. The total amount of assessments, including accrued interest to date, previously of record • against the above described property, is 3. Crow River Habitat for Humanity, Inc. ("Habitat ") purchased the above described property at a tax forfeiture sale held by McLeod County and has requested a waiver of assessments otherwise due and payable to the City of Hutchinson in payment for the municipal improvements installed by the City which benefit the above described property; 4. Habitat is a not for profit volunteer organization engaged in the business of constructing housing intended for lower income residents of McLeod County. The City of Hutchinson ( "City ") has a documented need for additional housing opportunities for lower income residents. 5. Wai the assessments as set forth above will promote construction of lower income housing will provide more housing alternatives for individuals having lower and moderate incomes, will contribute to variety in the housing stock within the community of Hutchinson and will restore • property to the tax rolls thus producing economic benefit to the City thereby justifying waiver of the assessments at issue. NOW THEREFORE for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Crow River Habitat for Humanity, Inc. and the City of Hutchinson stipulate and agree as follows: 1. Waiver of Assessments: The City agrees not to reimpose assessments on the above described parcel for improvements previously constructed. The parties stipulate and agree that the amount of the assessments so waived is 2. Construction of Housine: Habitat agrees to construct housing in accordance with the widelines of the national Habitat for Humanity organization and to make said housing available to lower income individuals, again in accordance with the national Habitat for Humanity bylaws, rules and regulations. 3. Non A.ssig_nabi i eement: Habitat may not assign, sell or otherwise transfer in any way the benefits conferred upon Habitat by this agreement to any other party, entity, organization or individual save and except for the person or persons for whom the property will be improved. This non assignability provision shall be of no further force and effect following transfer of the property to the person or persons for whom the property was improved in accordance with the Habitat for Humanity guidelines. 4. Reimposition of Assessment: The City reserves the right, and Habitat agrees to permit the City, to reimpose the assessments, to be paid in accordance with the usual City assessment policy, in the event Habitat sells or transfers the above described property in violation of paragraph 3 of this agreement. Further, Habitat waives all procedural rights relative to the imposition of assessments and agrees that the assessments may be imposed immediately without further notice to Habitat by the City. The City's right to reimpose assessments shall expire on December 31 of the third year following occupancy of the home constructed on the premises or December 31, 2007, whichever occurs first. 5. Future Assessments: Nothing in this agreement shall be construed to in any way limit the ability of the City to impose assessments for future improvements which, in the City's judgment, benefit the above described property. Further, nothing in this agreement shall in any way limit the ability of the then owner of the above described property to challenge said assessments pursuant to Chapter 429 of Minnesota Statutes or as otherwise provided by law. 6. Notices: Notices under this agreement shall be sent to the following addresses: If to City: Gary D. Plotz, City Administrator Hutchinson City Center 111 Hassan Street S.E. Hutchinson, Mn. 55350 If to Habitat: Crow River Habitat for Humanity, Inc. 35 Main Street No. Hutchinson, Mn. 55350 . 7. Modifications: This agreement may be modified by the parties only in a writing signed by both parties, and recorded against the above described property. IN WITNESS WHEREOF, the parties hereto have set their hands the year and date first above written. CROW RIVER HABITAT FOR HUMANITY, INC. 0 CITY OF HUTCHINSON Its: Mayor Attest: 0 Gary D. Plotz, City Administrator 3 fi STATE OF MINNESOTA) ) SS. COUNTY OF McLEOD ) On this day of ?\-fay, 1997, before me a Notary Public, personally appeared the of Crow River Habitat for Humanity, Inc. a Minnesota not for profit corporation and who executed the same as behalf of the corporation. '_Notary Public STATE OF MINNESOTA) ) SS. COUNTY OF McLEOD ) On this day of May, 1997, before me a Notary Public, personally appeared Marlin Torgerson and Gary D. Plotz, Mayor and City Administrator, respectively, of the City of Hutchinson, a Minnesota municipal corporation, and who executed the same on behalf of the municipal corporation. Notary Public THIS INSTRUMENT WAS DRAFTED BY: G. Barry Anderson ARNOLD, ANDERSON & DOVE, PLLP 101 Park Place Hutchinson, Mn. 55350 Telephone (320) 587 -7575 Attorney I.D. No. 196X Tax Statements should be sent to: Crow River Habitat for Humanity, Inc. 335 Main Street North Hutchinson, Mn. 55350 4 - _=-HOLD COUNCIL REPORT TUE, NAY 13, 1997, 11:26 AM page 1 _976 L4PRO.BD COUNTY RECORDER --------------------------------------- RECORDING FEES $67.00 • < *> $67.00* - 980 TIDS ERICKSON & TEMPLIN DEMO 2 -WAY BLDG $3,599.00 IND.SCHOOL DIST. #423 TAX INC ADJUSTMENT -1996 $16,429.00 < *> $20,028.00* 1984 PARKING BDS JUUL CONTRACTING CO 96/L9 EST 7 $3,173.09 MCLEOD COUNTY TREASURER 1st half prop tax $353.00 < *> $3,526.09* 1987 - MPROV. BDS FIRSTAR BANK OF MINNESOTA int pay $160,350.00 < *> $160,350.00* _995 IMPRO CONST LEAGUE OF MN CITIES SJ LOUIS CLAIM $4,064.45 < *> $4,064.45* 1996 IMPRO CONST WM MUELLER & SONS 96/L7 EST 7 $1,570.25 < *> $1,570.25* 1996 T I CONSTR. MCLEOD COUNTY TREASURER 1ST HALF PROPERTY TAX $1,115.00 < *> $1,115.00* �:AP.IMPRO.FUND QUADE ELECTRIC PARTIAL BANDSHELL ELEC $1,600.00 < *> $1,600.00* CENTRAL GARAGE ASPEN EQUIPMENT CO SEAL SHAFT $28.11 BRANDON TIRE CO ADD'L PYMT $431.77 CARQUEST AUTO PARTS FILTERS $1,222.27 CITY OF HUTCHINSON MAY MEDICAL $432.09 COAST TO COAST SUPPLIES $2.17 FLEXIBLE PIPE CO NOZZELE $162.96 • FORTIS BENEFITS MAY LTD INS $20.36 G & K SERVICES UNIFORMS $69.93 GLOBAL COMPUTER SUPPLIES LABELS $131.72 HARPEL BROS.INC KN18511X GOVERNOR $79.92 HUTCHINSON WHOLESALE SUPPLIES $181.01 J.S. KELLER VEHICLE INSP BOOK $83.93 MACQUEEN EQUIP INC KNOB $36.82 MN DEPT OF REVENUE SE -100 $23.32 MN MUTUAL LIFE MAY LIFE $7.14 NO STATES SUPPLY INC HX CAP $28.74 PLOWMANS INSTALL TIE ROD $148.12 RADIO SHACK MINT SPKRS $19.99 RUNNING'S SUPPLY SUPPLIES $10.64 SNAP ON TOOLS CORP VWBSOOC $166.95 SORENSEN FARM SUPPLY COUPLER $17.41 STEWARD ENTERPRISES 5E -100 $207.00 TERMINAL SUPPLY CO TAPE $189.99 TWO WAY COMM INC RELAY $78.34 US POSTAL SERVICE APRIL POSTAGE $43.02 < *> $3,823.72* ECON. DEV. LOAN HUTCHINSON LEADER NOTICE OF LAND SALE $35.97 < > $35.97* GENERAL FUND A.J.SCHAAKE CO. SERVICE PLAQUES $55.31 AAGARD WEST MAY PICKUP $814.22 ALEXANDER BATTERIES ADAPTER -LESS CREDIT $4.64 ALLEN OFFICE PROD WR510 & WR512 $430.47 AM.WELDING SUPPLIES OXYGEN $14.85 ANDREA MOORE CLASS CAN REFUND $10.00 ARLT, JOHN MENS BB REG $18.00 ARNOLD & MCDOWELL APRIL COMPENSATION $6,866.00 ASKEW, DELORIS SR CLASS REFUND $5.00 BAERTSCHI & ASSC RENEW MN POLICE BRIEFS $75.00 r� to -A/ QPEN -HOLD COUNCIL REPORT TUE, MAY 13, 1997, 11:28 AM Wage 2 ------------------------ --- -------- - - - - -- - --------------------- GENERAL FUND BALA, JAYASHREE - --_-' TREES & SHRUBS CLASS CANCEL --- ---- $5.00 - - - - -- • BEACON BALLFIELDS BENNETT OFFICE SUP. BASE RECOND PAINT TONER $581.25 $1,353.95 BERNICKS PEPSI COLA POP $57.18 BEST WESTERN MAPLEWOOD INN C.JONES 3 -23 TO 4 -18 $536.06 BRANDT GARMET LETTERING EMBROIDERED SHIRTS $85.80 BRINKMAN STUDIO FILM PROCESSING $77.96 BROWN, JANET APCO CONFERENCE EXPENSE $11.19 BRYAN ROCK PRODUCTS RED BALL AGG $3,260.50 BUDDE, JODI QUE DESIGN WORKSHOP $250.00 BUSCH, DAVE EMT EXAMINER $60.00 BUSINESSWARE SOLUTIONS CAPAC CARTDG $85.16 CARR FLOWERS PLANT- J.OTTO $84.67 CASH WISE SUPPLIES $228.09 CDI OFFICE PRODUCTS LTD BNDR, TRANSFLM $287.53 CENTRAL GARAGE APRIL REPAIRS $8,308.69 CHAMBER OF COMMERCE MUSIC IN PARK CONTRIBUTION $1,500.00 - CHAMPION AUTO FLOOR DRY $12.76 CHRISTENSEN, JAMIE SKATING INSTRUCTOR $21.75 CITY OF HUTCHINSON MARCH, APRIL CONTRIBUTION $45,499.40 COAST TO COAST EQUIPMENT PARTS $728.00 COUNTY RECORDER RECORDING FEES $39.00 CROW RIVER AREA QUALITY COUNCI APRIL SESSION -DICK LENNES $5.00 CROW RIVER OUTDOORS INC. HIP BOOTS $37.27 CROW RIVER PRESS INC BUSINESS CARDS $234.23 DEPT NATURAL RESOURCES DNR FEES TO STATE $1,825.00 DEPT OF LABOR & INDUSTRY INSPECTION $10.00 DEPT OF PUBLIC SAFETY -OISM CONNECT & OPERATIONS CHGS $390.00 DJ'S MUNICIPAL SUPPLY SPOUTS, GLOVE, LUTES, PMB $332.21 DOMINO'S PIZZA PIZZAS $111.95 ECOLAB PEST ELIM PEST CONTROL $22.37 ELKS LODGE #2427 POP, POPCORN $39.14 ERICKSON OIL PROD REFUND OF 2 OFF SALE BEER LIC $400.00 ERLANDSON, BEN BIKE BONANZA 7 HOURS $42.00 EVESLAGE, JOE BIKE BONANZA 6 HOURS $30.00 EWING, BRENDA LMCIT LOSS CONTROL WORKSHOP $33.48 FABRICARE CLEANERS CLEANING 10.90 FIEDLER, RICH BB OFFICIAL 54.00 FILING SPECIALTIES MUG FOLDERS 60.93 193.21 FITZLOFF HARDWARE SUMP PUMP, ETC • FORBES AUTO REPAIR $119.82 FORD, JAMES SAFETY BOOTS $60.00 FORESTRY SUPPLIERS SOIL THERMOMETER $18.59 FORTIS BENEFITS MAY LTD INS $1,597.92 G & K SERVICES UNIFORMS $877.76 GREAT PLAINS SUPPLY CEDAR FOR SIGNS $81.59 GRIEP, MEGAN SKATING INSTRUCTOR - $24.00 GRINA, LISA REIMB -VIDEO TAPES, POST -ITS $12.14 GROEHLER, FLOYD SAFETY BOOTS $60.00 HAGER JEWELRY REPAIR BADGE $3.75 HANSON, DEB LUMBER TO REPAIR MAILBOX $9.57 HAUSLADEN, LESLIE SKATING INSTRUCTOR $132.00 HCVN -TV COPY VIDEO TAPES $7,746.63 HEADSTRONG GROUP INC SUPPLIES $216.40 HIGGINBOTHAM, RUTH BLDG SUP $50.00 HILLYARD FLOOR CARE / HUTCHINSON TOWELS $1,028.38 HUTCH CONVENTION & MARCH LODGING TAX $4,374.15 HUTCH COOP CENEX FUEL $19.14 HUTCH FIRE & SAFETY EXTING RECHARGE $14.80 HUTCH PLBG & HTG CO SLOAN VALVE $33.36 HUTCH PUBLIC SCHOOLS H.S. GYM /LOCKER ROOM $206.25 HUTCH WRESTLING CLUB REFUND OF INVESTIGATION FEE $100.00 HUTCHINSON LEADER APRIL ADV $1,564.37 HUTCHINSON TEL CO MAY PHONE $5,845.75 HUTCHINSON UTILITIES APRIL ELEC CHAMBER SIGN $5,731.31 HUTCHINSON WHOLESALE GEAR $115.36 ICMA GUIDE $24.95 IN THE LINE OF DUTY INC TRAINING TAPES $695.00 INK SPOTS ENVELOPES $788.40 INTOXIMETERS INC MOUTHPIECES SING PACK $51.36 JACK'S UNIFORMS & EQUIPMENT BUTTONS, STRAPS, INNERBELT $155.05 JEANETTE DEATSCH SR TOUR CAN $25.00 JEFF'S ELECTRIC REPAIR AIR COMPRESSOR $176.11 JERABEK MACHINE SERV FLAT IRON $5.50 JOES SPORT SHOP PLAQUES $38.34 JUREK, SUE EMT TRAINING $180.00 F_ 1 L -A "PEN -HOLD COUNCIL REPORT TUE, MAY 13, 1997, 11:28 AM page 3 ---------------------------------------------------------------------------------------------------- GENERAL FUND K MART FILM & BATTERIES $85.99 KARG, LARRY 2 ROLLING LADDERS $34.09 KOLLER, MARION SR ACT REFUND $20.00 • KRISHNAMOORTHI, CHITRA PARKING FOR SEMINAR $6.00 KUBESH, MICHEAL EMT EXAMINER $60.00 L & P SUPPLY CO TRIMMER HEAD $86.88 LAMPLIGHTER II WW EMPLOYEES $153.42 LANG, STEVE BIKE BONANZA 6 HOURS $36.00 LASER GRAPHICS 500 FRISBEES $795.14 LAW ENFORCE EQUIP NAME BAR $109.95 LEAGUE OF MN CITIES W.C. DEDUCTIBLE $22,134.21 LENNES, RICHARD APRIL COMPENSATION $2,407.42 LINDSAY, PATRICIA SOCCER REFUND $10.00 LITTLE DUKES CAR WASHES $106.00 LOFFLER BUSINESS SYSTEMS LOGGER PARTS $545.44 LOGIS MARCH COMP CHARGE $7,668.41 MADSON, LINDA CLASS CAN REFUND $12.00 _ MADSON, STEVEN TRAVEL EXPENSES $376.02 MARCO BUS.PRODUCTS TONER CARTRIDGE $193.43 MARKA, JAMES SECR LUNCH 44.92 MARKS TV SHOP SUPPLIES 34.26 MARY HORROCKS REFUND $5.00 MAWSECO BUS PASS REFUND $12.00 MCCLURE, JASON BIKE HELMET $34.99 MCGARVEY COFFEE INC COFFEE $138.63 MCLEOD COUNTY TREASURER iet half property tax $1,440.00 MCRAITH, JOHN MEMORY FOR COMPUTER $85.18 MERLE ELROD CLASS REFUND $3.00 MERRILL, KENNETH B. LUMCH MEETINGS $141.34 METRO ATHLETIC SUPPLY BASES, PITCHING RUBBER $1,064.95 METRO SALES TONER $114.97 ME DEPT OF REVENUE DEFENSIVE TACT MANUALS $104.64 MN ELEVATOR INC. ELEVATOR SERVICE $67.90 MN MUTUAL LIFE MAY LIFE - MATTSFIELD $559.02 MN STATE ARMORY BLDG.COMM ANNUAL PAYMENT $7,000.00 MODERN FARM LOCKS $54.95 MORE 4 SUPPLIES $55.44 MR. MOVIES MOVIE RENTAL $2.99 MTI DIST.CO BLADES $416.12 NICHOLS, JUDY BEAN POT BASKET CANCELLED $34.00 • NO STATES SUPPLY INC HARDWARE $301.47 NOWAK, JAMES EMT EXAMINER $60.00 PARTIES PLUS SUPPLIES $5.27 PAUL WYLIE CAN SHELTER REVER $15.00 PEACE LUTHERAN CHURCH MISC $240.00 PEARCE, JESSICA BIKE BONANZA 6 HOURS $36.00 PETERSON BUS SERVICE BUS RIDES SR CNTR $800.00 PITNEY BOWES INC TALLIES BOOK, TAPE ROLLS $118.95 PLOTZ, GARY D. PICTURES $33.22 PRIEVE, CONNIE CLASS CAN REFUND $23.00 PROFESSIONAL EQUIPMENT BALANCE OF PAYMENT $12.45 QUADE ELECTRIC BREAKER -AIR COMPRESSOR $158.07 QUANTUM LABS LATEX GLOVES $74.10 RADUNZ, JENNIFER SKATING INSTRUCTOR $113.25 RANNOW, MARY DEF. DRIVING CANCEL $6.00 REINER, MAUREEN SR CLASS REFUND $5.00 RESPOND SYSTEMS EARPLUGS $206.89 RETROFIT RECYCLING INC LAMPS RECYCLED $64.56 RIDER BENNETT EGAN & ARUNDEL LEGAL SERVICE $1,334.22 RUNNING'S SUPPLY SUPPLIES $533.57 SCHUMACHERS FOOD $646.32 SCHWARZROCK, SUZEANN TREES & SHRUBS CLASS CANCELLED $5.00 SERVICEMASTER CLEAN CARPETS & RUNNERS $113.36 SEVEN WEST WASH & DRY LAUNDRY $13.15 SHOPKO SUPPLIES $55.28 SNAP ON TOOLS CORP TAPPET WR $32.48 SORENSEN FARM SUPPLY WELDING ROD $10.65 SPRENGELER, LINDA TREES & SHRUBS CLASS CANCEL $5.00 STANDARD PRINTING RECEIPT BOOKS $5,235.65 STAR TRIBUNE 3 MONTH RENEWAL $26.00 STATE CHEMICAL MFG URINAL -ADE $239.19 STATE OF MINNESOTA TRAFFIC LAWS $25.31 TRAF 0 TERIA SYSTEM PARKING TICKETS $167.16 TRI CO WATER COND 4 SALT $21.30 TRIAX CABLEVISION CABLE SERVICE $7.86 TURF SUPPLY COMPANY FERTILIZER, GRASS SEED $3,489.55 r1 LJ QPEN -HOLD COUNCIL REPORT - UE, MAY 13, 1997, 11:28 AM cage 4 GENERAL FUND _________________ _____________ UHL CO. __________________ SERVICE MAINTENANCE __- __________ $821.30 • UNITED BLDG CENTERS US POSTAL SERVICE DOUBLE PAYMENT APRIL POSTAGE $246.15 $1,028.96 VERSA -VEND VENDING INC CANDY $65.52 VICKI HOEFT CLASS CAN $12.00 VIKING SIGNS LOBBY SIGN $21.30 WAKEFIELD, GARY EMT EXAMINER $60.00 WAL -MART HARDWARE $28.65 WILLIAMS STEEL & HARDWARE ANCHORS BENCHES $416.64 < *> $170,471.57* HAT -FAC. CONST. MCLEOD COUNTY HIGHWAY DEPT. PAVING COSTS $48,013.66 < *> $48,013.66* HOUSING REDEV KAHLE, DAVID CARPENTRY $560.00 OLSON, ARNIE & INSULATION $5,000.00 < *> $5,560.00* HUTCH TRANS FAC. COAST TO COAST SCOOP $4.25 G & K SERVICES MOPS & MATS $273.70 G.NEIL COMPANIES POST LAM KIT $51.23 HILLYARD FLOOR CARE / HUTCHINSON SUPPLIES $115.66 HUTCH FIRE & SAFETY EXTINGUISHER $145.80 HUTCHINSON TEL CO MAY PHONE $212.74 HUTCHINSON UTILITIES APRIL ELEC & GAS $3,663.31 MCGARVEY COFFEE INC MCG FLAME RM FP $35.63 MCLEOD COUNTY TREASURER 1st half pro tax $7,192.89 MN DEPT OF REVENUE GAS SALES TAX $83.27 US POSTAL SERVICE APRIL POSTAGE $1.60 < > $11,780.08* INSURANCE FUNDS CASH WISE HAW FOOD $78.59 CREATIVE PROMOTIONS SHPAE UP CHAL SHIRTS $82.00 STANDARD PRINTING CARDSTOCK $7.99 < > $168.58* Ll(DR STORE AAGARD WEST MAY SERVICE $45.20 AM.LINEN SUPPLY CO SUPPLIES 157.85 13ERNICKS PEPSI COLA MISC PUR ,527.77 13USINESSWARE SOLUTIONS HP REPAIR $39.26 CDI OFFICE PRODUCTS LTD SUPPLIES $54.80 CITY OF HUTCHINSON LOTTO PAYMENT $4,163.16 CITY OF HUTCHINSON- GENERAL FUN PAYROLL 5/9/97 $6,546.73 COAST TO COAST SUPPLIES $25.57 ED PHILLIPS & SONS CO. LIQ PUR FOR APRIL $6,186.61 FORTIS BENEFITS MAY LTD INS $39.70 GRIGGS COOPER & CO LIQ PUR APRIL 97 $17,446.69 HAROLD SANDGREN ICE SERV CLEAN ICE MACHINE $50.00 HENRYS FOODS INC MISC PUR $1,730.97 HERMEL WHOLESALE MISC PUR $235.34 HUTCH PLBG & HTG CO FILTERS FOR ICE MAKER $392.12 HUTCHINSON LEADER ADV FOR LIQ STORE APRIL $264.32 PUT CHINSON TEL CO MAY ADV $140.27 HUTCHINSON UTILITIES APRIL ELEC & GAS $877.97 JOHNSON BROTHERS LIQUOR CO. APRIL WINE PUR CREDIT $10,814.92 LEAGUE OF MN CITIES WC AUDIT ADJ $852.00 LEHMANN FARMS MISC PUR APRIL 97 $103.77 LENNEMAN BEVERAGE DIST. INC BEER PUR APRIL 97 $2,867.50 LEG'S TRANSFER APRIL FREIGHT 2NDHALF $718.63 LOCHER BROS INC BEER PUR APRIL 97 $12,892.35 MN MUTUAL LIFE MAY LIFE $14.07 MORE 4 MEETING SNACKS $127.22 PAUSTIS & SONS BEER PUR APRIL 97 $466.95 PEART & ASSOCIATES SERVICE CALL CAMERA MOVE $97.06 QUALITY WINE & SPIRITS CO. WINE PUR APREIL 97 $1,582.85 SEGAL WHOLESALE MISC PUR MAY 97 $779.29 ST. CLOUD RESTAURANT SUPPLY SUPPLIES $46.70 TRI CO WATER COND DRINKING WATER $31.62 TRIPLE G DISTRIBUTING INC BEER PUR APRIL 97 $21,860.20 US POSTAL SERVICE APRIL POSTAGE $16.32 VIKING COCA COLA MISC PUR APRIL 97 $235.20 F 1 LJ QPEN -HOLD COUNCIL REPORT TUE, MAY 13, 1997, 11:28 AM P *L FUND PUBLIL SITES RURAL F. D cage 5 ------------------------------------ $92,431.02* AETNA VARIABLE LIFE ASS. CO. EMPLOYEE CONTRIB 5 -3 $790.00 SUPPLIES GREAT WEST LIFE INS. CO. EMPLOYEE CONTRIB 5 -3 $100.00 H.R.L.A.P.R. EMPLOYEE CONTRIB 5 -3 $164.00 STAPLER, STAPLES, PHONE REST ICMA RETIREMENT TRUST EMPLOYEE CONTRIB 5 -3 $2,765.37 PERA LIFE INS CO. EMPLOYEE CONTRIB 5 -3 $130.50 DUO -POWER PERA- D.C.P. EMPLOYEE CONTRIS 5 -3 $52.02 PRUDENTIAL EMPLOYEE CONTRIB 5 -3 $180.00 BUSINESS CARDS PRUDENTIAL MUTUAL FUNDS EMPLOYEE CONTRIB 5 -3 $30.00 PUBLIC EMPLOYEES EMPLOYEE CONTRIB 5 -3 $15,690.93 RANDY CHICAGO TRIP TEMPLETON INC EMPLOYEE CONTRIB 5 -3 $458.46 WADELL & REED EMPLOYEE CONTRIB 5 -3 $150.00 FERROUS CHLORIDE $829.93 FORTIS BENEFITS MAY LTD INS $20,511.28* MCLEOD COOP POWER CITY OF HUTCHINSON ELEC HOOKUP APRIL FUEL $1,600.00 $1,600.00* $77.67 $77.67* WATER /SEWER FUND AAGARD WEST APRIL PICKUP SERVICE $27,397.94 ALLEN OFFICE PROD SUPPLIES $23.30 AUTOMATION SUPPLY CO RIBBONS $16.49 B.A_ LIESCH ASSOCIATES APRIL PROF SERVICES $2,844.21 BENNETT OFFICE SUP. STAPLER, STAPLES, PHONE REST $63.48 BUSINESSWARE SOLUTIONS CARRYING CASE, MEMORY 5404.71 CENTRAL GARAGE APRIL REPAIRS $479.24 CHEMSEARCH DUO -POWER $72.69 CITY OF HUTCHINSON APRIL FUEL $5,141.39 COAST TO COAST RENTALS $584.41 CROW RIVER PRESS INC BUSINESS CARDS $14.65 CULLIGAN WATER COND SUPPLIES $14.00 D.P.C.IND.INC SL2, S02 $789.97 DEVRIES, RANDY RANDY CHICAGO TRIP $208.00 FADDEN PUMP CO. QUAD RINGS, FITTING $33.01 FAMILY REXALL DRUG • RIBBON $5.96 FEED RITE CONTROLS FERROUS CHLORIDE $829.93 FORTIS BENEFITS MAY LTD INS $214.16 G & K SERVICES UNIFORMS $404.68 GOPHER STATE INC MARCH SERVICE $28.00 HARRIS CONTRACTING MARCH MAINTENANCE $1,055.00 HUTCH IRON & METAL 3" CHANNEL $67.06 HUTCHINSON LEADER SPRING CLEANUP INFO $1,343.55 HUTCHINSON TEL CO MAY PHONE $740.19 HUTCHINSON UTILITIES APRIL ELEC & GAS $25,708.33 INFRATECH WALL CUBE, BATTERY PACK, CHARG $907.61 INSTRUMENTATION SERVICES INC OXYGEN CELL $109.51 JEFF'S ELECTRIC INSTALL FLOOD LIGHTS $774.90 JERABEK MACHINE SERV METAL $23.95 JOHNSON, WILBUR USED ELEVATORS $150.00 L & P SUPPLY CO ROLLER BEARING -$2.02 LEAGUE OF MN CITIES WC AUDIT ADJ $1,190.00 LOGIS MARCH COMP CHARGE $2,532.26 MCGARVEY COFFEE INC COFFEE, HOT CHOC $138.04 MN DEPT OF HEALTH REG- D.EBERT $100.00 MN DEPT OF REVENUE W /S /R SALES TAX APRIL $3,292.77 MN MUTUAL LIFE MAY LIFE $74.97 MN VALLEY TESTING LAB AEROBIC PLATE COUNT $108.00 NAGY, RICHARD SAFETY GLASSES $48.86 NCL LAB SUPPLIES $129.60 NORTHERN WATER WORKS SUPPLY NOZZEL CAP $64.65 OLSONS LOCKSMITH KEY $56.33 QUADE ELECTRIC 2/C STAT WIRE $4.26 RAYFO INC. DUMPSTER $596.26 RESPOND SYSTEMS FIRST AID SUPPLIES $54.71 RUNNING'S SUPPLY PAINT $143.12 SERCO LABORATORIES LAB TESTS $401.60 SHARE CORP CITRA TOWELS $104.77 SORENSEN FARM SUPPLY CHAIN LINKS $9.31 US FILTER /WATERPRO FLG KIT $494.74 US POSTAL SERVICE APRIL POSTAGE $221.10 r 1 QPEN -HOLD COUNCIL REPORT TUE, MAY 13, 1997, 11:28 AM page 6 ' WATER /SEWER - — --- — ------ FUND USA BLUE BOOK - ---- -' — -------------------------------------- SKIMMING NET $78.10 USA WASTE SERVICES INC VIRGINIA TECHNICAL PRODUCTS LOADS 4/7 THRU 4/11 RED B GONE $6,179.82 $126.30 WITTE SANITATION 4 CONTAINERS $140.00 <*' $86,737.87* $633,532.21* WIRE TRANSFERS LIQUOR FUND MN DEPT OF REVENUE TAXES 14,840.00 PAYROLL FUND WITHHOLD TAX STATE WITHHOLD TAX U 31,715.77 6,411.53 1] IMMEDIATE PAY COUNCIL REPORT TUE, MAY 13, 1997, 11:26 AM page 1 1994 TAX INC D S ----------------------------- PRINCE OF PEACE SENIOR APT. IN ---- ----------- ------- - - - --- - - NCREMENT CAPTURE PAYMENT $5,973.14 *' $5,973.14* CE�L GARAGE ASPEN EQUIPMENT CO CABCOMMAND $154.37 < ' $154.37* ECON. DEV. LOAN PLASTIC SPECIALITIES LLD PROMISSORY NOTE 5100,000.00 ENERGY LOAN FD CITIZENS BANK & TRUST & COMMERCIAL LOAN $49,700.00 < > $49,700.00* GENERAL FUND AV FUEL CORPORATION 100LL AV FUEL $11,284.56 — CASH DRAWER #4 PAPER $46.71 CITY OF HUTCHINSON CASINO BUS TRIP 5 -8 -97 $850.00 DEPT NATURAL RESOURCES DNR REG FEES $2,820.00 GOVT TRAINING SER REG- J.MARKA $70.00 HANSKA BUSINESS ASSOCIATION 45 TICKETS FOR MAY 15 $480.25 JANET KARVONEN PUBLIC SPEAKING DARE GRAU SPEAKER $900.00 MN DEPT OF AGRICULTURE 8 PESTICIDE LICENSES $80.00 PETERSON BUS SERVICE COACH /ST.PETER $300.00 <*' $16,831.52* LIQUOR STORE CITY OF HUTCHINSON- GENERAL FUN PAYROLL 4 -25 $6,559.22 JORDON BEVERAGE INC. BEER PUR APRIL $1,944.65 LUNDHOLM, LORI MONTHLY WINDOW CL SERVICE $42.60 PAUSTIS & SONS WINE PUR APRIL $822.90 QUALITY WINE & SPIRITS CO. WINE PUR APRIL $9,404.56 ST. CLOUD RESTAURANT SUPPLY SUPPLIES PUR APRIL $260.61 VFW POST 906 DONATION $15.00 <*> $19,049.54* PAYROLL FUND AETNA VARIABLE LIFE ASS. CO. EMPLOYEE CONTRIB 4 -19 $790.00 AMERICAN FAMILY INS CO. EMPLOYEE CONTRIS 4 -19 $89.16 GREAT WEST LIFE INS. CO. EMPLOYEE CONTRIB 4 -19 $100.00 H.R.L.A.P.R. EMPLOYEE CONTRIB 4 -19 $164.00 ICMA RETIREMENT TRUST EMPLOYEE CONTRIB 4 -19 $2,765.37 PERA LIFE INS CO. EMPLOYEE CONTRIB 4 -19 $118.50 PERA- D.C.P. EMPLOYEE CONTRIB 4 -19 $52.02 PRUDENTIAL EMPLOYEE CONTRIB 4 -19 $180.00 PRUDENTIAL MUTUAL FUNDS EMPLOYEE CONTRIB 4 -19 $30.00 PUBLIC EMPLOYEES EMPLOYEE CONTRIB 4 -19 $15,070.79 TEMPLETON INC EMPLOYEE CONTRIB 4 -19 $458.46 WADELL & REED EMPLOYEE CONTRIB 4 -19 $150.00 < *' 519,968.30* WATER /SEWER FUND CASH DRAWER #4 PARKING FEE $12.75 MPCA EXAM- S.HANSON $32.00 < *> $44.75* $211,721.62* TO: Mayor and City Council — FROM: Brad Emans, Fire Chief May 13. 1997 FOR FOUR INFORNKM The apartment building collapse Monday, May 5th, was a tragedy, but out of all bad comes some good. When our emergency agencies were put to the test, working together we were successful. The training we have done together in Incident Command and mass casualty obviously paid off. I would like to commend Steve Madson and Jim McKay for the excellent job their people did. The Fire Department members are a group of highly trained emergency workers and I am very proud of them. We all work hard at training and sometimes you say, "Is it worth it ? ", on Monday it paid • off. I think we can build off of this experience. I also want to inform you that letters of commendation have been given to: Asst. Chief Steve Schramm, Captain Jim Popp, Captain Gary Forcier, Captain, Brian Koelln and Firefighter Brent Reiner. 0 HUTCHINSON FIRE DEPARTMENT 205 Third Avenue South East HUTCH INSON, MINNESOTA 55350 TO: Mayor and Council FROM: Brad Emans, Fire Chief MONTHLY CITY COUNCIL UPDATE APRIL, 1997 The fire department responded to 30 calls for service in April. Breakdown of the City calls: 4 - Residential 3 - Commercial /Industrial 2 - Multi Family 1 - Haz Mat 2 - Vehicle 9 - Carbon Monoxide . 1 _ Mutual Aid (Litchfield) Grass 1 reakdown 1 - Farm Building 2 - Rescue 1 - Medical 3 - Grass Drills /Meetings for the month: • Truck pumping class • Ladders and Ropes • SCBA • 3 -M tour • Regional Meeting (Winsted) /bb HAFIRE \CCUPDATE. Administrative Office John M. Houlahan, Director 410 Fifth Street SW P.O. Box 327 Omar, Minnesota 56201 -0327 P ioneedand nu,LIBRARY i ii iuti�ii Phone: (320) 235 -6106 Fax: (320) 235 -6106 PIONEERLAND LIBRARY SYSTEM BOARD MEETING April 17, 1997 wilmarpi@royal.cfa.org Pioneerland Library System Board met on Thursday, April 17, 1997 at the Kandiyohi County Highway Department Building in Willmar. At 6:30 p.m. orientation for new board members was held and the Finance Committee met. Chairman Orville Rudntngen called the regular Board meeting to order at 7:30 with 28 members present 4 excused. 9 absent and 4 positions still vacant. Past member Howard Christiansen sat in for Harlan Madsen of Kandiyohi County. Rudningen introduced new member Stacey Schuette of Plato representing McLeod County. Clouse/McDonald moved the approval of the agenda as printed Passed Sneer /Canfield moved the approval of minutes of March 20, 1997 as printed Passed. COMMITTEE REPORTS Floyd Sneer gave the Financial report. Sneer /Canfield moved the approval of the December 1996, January and February 1997 financial reports. Passed The 1996 audit by Westberg, Eischens, Van Buren, . Ruff & Riley was reviewed Sneer/ Berg -Perry moved for the approval of the audit. Passed The committee approves the wage scale as submitted by the Personnel Committee. Ivey Vonderharr gave the Personnel Committee report. The revised personnel policy was presented for approval. Article 206 was added to read "All employees will record actual hours worked" The words - only," "direct" and Mork only when paid staff member is present" were deleted from Article 2703 to read: - Volunteers The purpose of Pioneerland Library System's volunteer program is to increase co awareness of library services by increasing commonity involvement and participation. Pioneerland Library System seeks to utilize volunteers in support of library staff in providing library service. Volunteers must work under supervision of a paid library staff member." 1998 wages and the pay ranges with interval increase were discussed. Committee recommends 2% increase with additional interval increase of 3 %. Employee is to complete 3 of 4 requirements listed to be eligible for the interval increase. Personnel Committee has not completed their 1998 salary recommendations for the four top positions. Committee is considering employee contracts for them. All comp time is to be used up by September 1, 1997. Exceptions are automation personnel and director and plans are being developed for those two employees. Vanderharr /Canfield moved to approve the 1998 wage scale. Passed. 2 no's. NEW BUSINESS Berg- Perry/Hauer moved to accept the Extension Agreement on Use of OCLC. Passed. Berg - Perry/Canfield moved to approve the contract with MEANS pending Chairman Rudningen's reviewing it when it comes. Passed John and Kathy explained the role of the Collection Development Task Force for PLS. . The Report of the Director and Assistant Director was accepted as printed and John reported on library legislation. Dassel. Dawson. Olivia. Ortonville, and Spicer are planning or have nearly completed their building/remodeling projects. Graceville and Willmar are applying for state grants. John was commended on the Automation Newsletter he has issued All Board members were asked to see that their local library • boards• city councils and county commissioners receive a copy of this update on automation implementation in our libraries. ANNOUNCEMENTS Automation Committee is to meet Tuesday May 6, 1997, 6:00 p.m. Kandiyohi County Health & Human Services Building, Willmar, Room 1010. Next Board meeting is Thursday, May 15, 1997, 7:30 p.m., Kandiyohi County Health & Human Services Building, Willmar. Personnel Committee will meet May 22, 1997, 5:00 p.m. Willmar Library. Ivey Vonderharr Secretary 7 A PAY 2 -1997 O'er' )F HUTCHi : "ON �1 u April 30, 1997 TO: Gary Plotz, Admr. City of Hutchinson FROM: R. Thomas Gillaspy Minnesota State Demographer SUBJECT: 1996 Population and Household Estimates Your April 1, 1996 population estimate is 12,587. Your April 1, 1996 household estimate is 5,015. FOR YOUR INFORMATION If you have any questions or comments about these estimates, please contact the Office of State Demographer, 300 Centennial Office Building, 658 Cedar Street, St. Paul, MN 55155, phone (612) 296 -3091. All challenges must be submitted in writing. Please refer to the enclosed sheet for details. u l� U E 'h�I �f Pr ".0 VImnu,troir. MN April 10, 1997 Phil Graves, President Hutchinson Area Health Care 1095 Highway 15 South Hutchinson, MN 55350 Dear Phil: M ALLI NA HEALTH SYSTEM FOR YOUR INFORM AUN Far too long ago, you informed me that someone had mailed a photocopy of a negative editorial from Corporate Report about Allina's pediatric home care program to all of your City Council members. Please accept my sincere apologies for not personally responding earlier to you regarding this concern. When I received your request, I immediately relayed it to the Communications Depart rent. I thought they had replied directly to you, and only recently discovered they had not. Instead, they provided the information to me, thinking I would pass it along to you. Enclosed is Allina's official response printed in Corporate Report regarding the article in the February issue. It corrects some misinformation contained in the article. It also communicates that Allina has postponed carrying out the decision in favor of attempting to enact legislation that will help to solve issues in the future. Please feel free to share this information with the Hutchinson City Council and others in your organization as you see fit. If you need additional information, please contact me. Again, my sincere apologies for the delay in getting back to you. Sincerely, Becky Strange Division Vice President Regional Health Services BJS:js enc. FOR YOUR INFORMATION r -- -I March 3, 1997 Corporate Report Letters to the Editor 105 S. 5th Street Minneapolis, MN 55402 Dear Editor: Allina Health System takes direct public health responsibility very seriously, not just for those who are direct customers, but also for the greater community. For this reason, Allina has historically been a leader in making substantial investments in community health improvement. Consequently, I was surprised to see the simplistic analysis reflected in "First Word" in Corporate Report's February issue. • Allina has a long history of community involvement. In 1996 alone Allina contributed an estimated $110 million to such efforts, not the $8 million you cited. Allina's view of our social obligation extends well beyond taking care of people's health needs after they have been presented. We are firmly committed to improving the conditions that cause illness and injury to occur. It is for this reason, for example, that our health plan sends visitors to elderly members to assess their homes for injury risk, conducts outreach in more than a dozen languages to ensure that non - English speakers are taking full advantage of needed preventive health services, and that Allina hospitals partner with local social service agencies to seek more effective violence prevention and intervention strategies. With specific reference to the pediatric home care program, simple fact checking would have helped you to understand that because reimbursement levels have not increased since 1985, operating this program has cost Allina a minimum of $250,000 per year for the last five years, and that losses for 1997 are expected to reach $750,000. A simple reading of either metro newspaper would also have informed you that Allina has postponed implementation of this decision in favor of attempting to enact a legislative solution to the serious ongoing problem of inadequate payment for these essential health care services. This decision is in keeping with our focus of broader community health care interests, not just on the needs of the people seeking care within our system. -more- The problem of inadequate payment levels for Medicaid and Medicare programs is a problem affecting all of us, not just the people involved with these programs. I can only hope that Corporate Report will also rise to the challenge of addressing some of these broad policy issues and not sit on the uninformed sidelines throwing stones at those of us who take these responsibilities seriously, and act on them. Sincerely, Jan Malcolm System Vice President for Public Affairs Allina Health System F -- I U LJ CITY OF HUTCHINSON LIQUOR STORE COMPARISON MARCH 1996 MARCH 1996 LIQUOR BEER 1 3,641 5,4 2 3,035 5,0 4 1,607 1,6 5 1,591 1,8 6 1,246 1,9 7 1,452 2,5 8 3,507 5,2 9 3,003 5,4 11 1,097 2,0 12 1,279 2,3 13 1,361 2,3 14 1,426 2,4 15 3,339 5,9 16 3,616 5,2 18 1,567 1,8 19 984 1,6 20 1,325 1,9 21 1,640 2,7 22 2,893 54 23 3,330 5,7 25 986 1,7 26 1,586 2,0 27 1,552 2,2 28 1,762 2,7 29 3,589 5,3 30 2,841 4,7 CITY OF HUTCHINSON LIQUOR STORE COMPARISON MARCH 1997 WINE TOTAL `- __ - - -- --- ------ _ - - - -- -- ----- 1,147 - 337 10,529 1 3,302 5,106 1,140 312 9,860 1,000 324 284 36,514 TOTAL 55.257 87,957 17,963 6.036 167,213 TOTAL 58,001 91,256 23,039 95 TOTAL 50,633 78,334 13,381 5,164 147,512 96TOTALS 55,257 87,957 17,963 % OF SAL 33 53 11 4 100 % OF SALE 32 51 13 SALES INC OR DEC 19,701 13 % SALES INC OR DEC 11,821 1.075 1,231 433 470 158 963 425 337 354 129 226 148 197 309 326 167 140 135 279 393 146 111 150 152 437 287 189 219 318 TOTAL 19,957 38,674 36,408 TOTAL BY WEEK LIQUOR BEER WINE MISC. TOTAL 6,738 6,036 4 39,343 37,967 38,939 48,935 3,990 179,034 167,213 100 7 °h 1.075 1,231 433 470 158 963 425 MISC. 119 BY WEEK 19,957 38,674 36,408 TOTAL BY WEEK LIQUOR BEER WINE MISC. TOTAL 6,738 6,036 4 39,343 37,967 38,939 48,935 3,990 179,034 167,213 100 7 °h CITY OF HUTCHINSON LIQUOR STORE COMPARISON APRIL 1996 APRIL TOTAL 1996 LIQUOR BEER - 1 1,499 ` 2,362 2 1,385 2,364 3 1,408 2,324 4 1,992 3.260 5 3,481 5,890 6 3,683 6,917 8 840 1,812 9 1,490 1,814 10 1,320 2,729 11 1,688 3,252 12 2,881 5,189 13 3,422 5,526 15 1,209 1,791 16 1,339 2,023 17 1,386 2,778 18 1,953 2,977 19 3,696 5,947 20 2,811 5,580 22 1,314 2,204 23 1,464 2,205 24 1,386 2,794 25 1,644 3,289 26 3.003 6,145 27 2,671 5,138 29 1,233 2,179 30 1,232 2.333 TOTAL 51,430 90,822 95 TOTAL 52.510 79,121 % OF SAL 30 54 SALES INC OR DEC WINE MISC. TOTAL TOTAL BY WEEK CITY OF HUTCHINSON 148 4.154 457 267 LIQUOR STORE COMPARISON 563 391 5,808 APRIL 1997 344 -------- - - -- - - ----- - APRIL -- TOTAL 398 LIQUOR BEER WINE MISC. TOTAL BY WEEK 4,274 - _�. 4,346 800 1 1,509 2.013 499 193 4,553 2 1,415 1,567 515 144 4,408 3 1,870 2,982 882 168 4,782 109 4 2,929 4.947 968 175 6,395 614 5 2,977 4.959 1,617 402 11,390 1,098 453 11,356 2,782 395 13,777 7 1,287 1,873 3,620 311 45.305 8 1,599 2,038 330 120 3,102 514 9 1,601 2,019 481 159 3,944 10 2,298 2,700 596 161 4,806 11 3,217 5,051 847 214 6,001 149 12 3,381 6,139 974 400 9,444 14,806 1,897 389 11,234 169,017 14 1,523 2,314 169,732 11 5 38,531 15 1,368 2.028 357 227 3,584 16 1,174 2,190 441 146 3,949 17 2,212 3,345 520 188 4,872 18 3,180 5,711 628 207 5,765 19 3,309 6,496 952 422 11,017 1,031 365 9,787 21 1,270 1,834 38,974 22 1,185 2,255 416 131 4,065 23 1,383 2,438 461 162 4,292 24 1,636 3,114 449 204 4,833 25 2,824 6,801 573 201 5,707 26 3,541 5,742 1,003 357 10,508 1,380 358 9.547 28 1,792 2,883 38,952 29 1,457 2,293 421 138 3,971 30 1,476 2,396 316 118 3,999 7,970 TOTAL 53,413 88,128 21,336 6,144 169,732 96TOTALS 51,430 90.822 16,982 5,631 154,244 % OF SALE 32 52 13 4 100 SALES INC OR DEC 15,488 10 % WINE MISC. TOTAL TOTAL BY WEEK 484 148 4.154 457 267 3,706 563 391 5,808 1,077 344 9,297 1,283 577 9,796 32,759 398 95 3,653 420 217 4,274 624 102 4,346 800 135 5,933 1,752 311 10,331 1,361 437 11,316 39,855 584 1,306 5,727 537 109 4,042 385 110 3,859 614 277 6,448 1,138 412 10,441 1,098 453 11,356 41,873 404 112 3,620 311 205 3,956 685 190 4,698 514 289 5,553 1,012 471 11,108 976 532 10,791 39,724 353 227 5,255 843 149 4,742 553 384 4,809 14,806 19,226 8,250 169,017 21,336 6,144 169,732 11 5 100 (715) (0)% • State Representative Bob Ness 289 State Office Building, 100 CansbAm Ave., St. Pad, MN 55155 (612) 296 14 NEWS RELEASE For Immediate Release MAY 12 1997 May 8, 1997 r T IF HUTCHt "ON STATE TO GIVE COUNTIES MORE FLEXIBILITY IN SEPTIC SYSTEM RULES ST. PAUL —State Representative Bob Ness said today that legislation was approved to amend current Individual Sewage Treatment System (ISIS) law to give counties more flexibility in complying with state regulations. The original legislation governing ISTS was signed into law on May 10, 1994. This legislation was aimed at the serious water pollution and health problems associated with the thousands of failing septic systems in the state. The 1994 law gave the Pollution Control Agency (PCA) authority to make rules for ISTS inspection and compliance upon construction of a new residence, a bedroom addition, or a sale when an inspection is appropriate. The rules became effective in January 1996. The PCA then drafted an inspection form that provided a designation of "failing" for any septic system that inspection did not show at least three feet of soil separation. This caused many properties all over the state to have sales delayed until new systems were implemented costing thousands of dollars, even though the existing septic systems were functioning without any apparent problems. "Recent laws governing individual septic systems have meant dramatic changes for a lot of people in a short period of time," said Ness, who voted to approve the changes to the law. "I have heard numerous complaints about required minimum design criteria, all kinds of new license and fee requirements, homeowner confusion and the high costs for system replacement. This bill will return some common sense to the process, and it will give counties more control over the process and more flexibility in meeting state requirements." Specifically, the new bill will allow local units of government to adopt standards for existing septic systems that are less restrictive than state standards under the conditions that soil, vegetation, population density, and groundwater flow justify the less restrictive standards, and that human health and the environment are protected. The bill also requires the PCA to revise rule 7080 to allow: MORE Page 2 of 2 . ► alternative local standards in situations of unique soils, vegetation, system use, groundwater flow, localized well placement and construction, and localized density of systems and wells; procedures allowing ISTS inspectors flexibility in malting judgments about groundwater protection using vertical soil separation and other criteria; procedures for the MPCA to approve new ISTS technology, including "warrantied" systems if the manufacturer can provide documentation and financial assurance on the product. Finally, the bill provides that any existing system that has at least two feet of soil separation, and does not provide an imminent threat to public health or safety, need not be upgraded, repaired, replaced, or its use discontinued. If you have questions or comments on this or any legislative issue, please contact Rep. Ness at 289 State Office Building, 100 Constitution Avenue, St. Paul, MN 55155-1298; tel: (612) 296-4344. 11 A 0 NEWS RELEASE MAY 1 21997 For Immediate Release T' )F HUTCHi "ON May 8, 1997 TAX BILL NOW IN CONFERENCE COMMITTEE; BILL PROVIDES TAX RELIEF FOR ALL PROPERTY OWNERS ST. PAUL. —State Representative Bob Ness said today that Minnesota House of Representatives approved a 400+ page opuubus tax bill that would provide property tax relief for all property owners. The legislation spends $200 million for a one -time rebate, lowers tax rates on business, apartment and cabin properties, and buys down local school property taxes, leading to greater state responsibility for the funding of K -12 education. "Although I worry about increased state spending in other areas, I'm pleased that in the House tax bill we were able to provide some property tax relief and not to raise any other tax in Minnesota," said Ness, who voted for the bill. "Most important, by reducing school property taxes, this bill reduces a school district's dependence on local levies to fund education." Major provisions of the House bill include: Homeowners and renters will receive a one -time income tax rebate equal to 8.5 percent of their 1997 property taxes. In addition, residential homestead class rates remain the same, but the base value is moved up to $80,000, which will provide some relief for all homeowners. ♦ Eligible low - income seniors 65 or older with incomes under $30,000 would be able to defer a portion of their property taxes. The deferred taxes and interest become a lien on the property unit it is sold, the applicant quits the program, or the death of homeowners. ♦ Tax rates for aparmrents drop from 3.4 to 2.8 percent, and eligible low- income rental property tax rates drop to 1.5 percent. Taxes on single - family rental homes would also be at the same rate as homestead party. ♦ Business tax relief: Reduces the top commercial/urdustrial property rate from 4.6 to 4.3 percent. For lower- valued business property, reduces the rate from 3.0 to 2.8 on the first S150,000 of value (versus the. current S100,000 base value). ♦ Cabin owners who file taxes as a Minnesota resident will receive an income -tax "circuit breaker" rebate on a sliding income scale to protect them from rising property taxes. The tax base value is also increased from $72,000 to $80,000. MORE Page 2of2 ♦ Saks tax relief'. Phases out the sales tax on replacement capital equipment and new farm machinery, and makes permanent the sales tax exemption on used farm machinery. ♦ The bill would lower individual school taxes by phasing in $460 million through pay 1999 by using a portion of the budget surplus and by transferring S 182 million of the Homestead and Agricultural Credit Aid (HACA) fmm counties, cities and towns. This is the provision that would reduce the property tax burden for funding of education, and shift more responsibility to the state. Local Goverment Aid (LGA) is increased, and the rules are changed to guarantee a minimum amount of LGA to each city. The bill changes the formula so that LGA is distributed based more on treed. The bill also contains levy lints allowing "cost-of-living" increases, but providing some restraint in property tax rates on the local level. ♦ The bill also creates a new "property tax reform" account to pay for tax relief and reform over three years. Sony percent of any surplus revenue announced in November 1997 would flow into this account. ♦ The current $260 million reserve grows to $520 million, the governor's recommendation. In the year 2000, the current property tax system will phase in these changes, which will have separate local and state property tax class rates. When implemented, it would increase state funding of education, and decrease the property tax burden. The proposed classification rate changes also will be good for "Main Street" businesses in small towns and cities throughout the state, Ness said. "If we are ever going to pass significant property tax reform, this is one of very few opportunities to do s so," said Ness. He added that the House tax bill differs substantially from the Senate version. Conferees from both bodies are meeting to iron out differences in the bills before the legislation comes back to the House and Senate for a final vote, and to the governor for his approval. "There are major differences between the two bills that must be worked out, including a provision in the Senate bill for a 'Business Activities Tax,' or BAT, but that provision has been deferred for a more comprehensive study of the tradeoffs," said Ness. "The BAT 'shifts' tax burdens to reduce property taxes and creates a new tax We need to know who the winners and losers will be before we can enact such a thing." "Not in either the House or Senate version of the tax bill is Govemor Carlson's education tax credit proposal, or a proposed income tax rebate, Ness added "The education tax credit proposal will need to be resohed in either the K -12 education or the tax conference committees. Tire tax bill's main accomplishment will be its movement toward true property tax reform." If you have questions or comments on this or any legislative issue, please contact Rep. New at 289 State Office Building, 100 Constitution Avenue, St. Paul, MN 55155 -1298; tel: (612) 2964344. A League creates flood recovery program help 0 7im Busse Minnesota cities Cities helping cities - -it's a natural phenomenon when disaster strikes. City response to the unprecedented Flooding is overwhelming. We heard from manv cities last week: Cities needing flood assistance information, and cities offering their equipment, personnel and even money to meet those needs. The League is creating a database to match city needs to resources available from cities. Cities needing Flood recovery assistance from other cities are asked to contact Research Specialist Theresia Perry at (612) 281- 1200 or (800) 925 -1122. The League hopes to create a loaned municipal staff program to help LMC provide Flood recovery help and technical assistance to cities restoring municipal operations and services. City officials interested in serving as loaned municipal staff should contact Theresia Perry. Many cities have asked us if they could donate money to help flood - stncken cities. T he city of Hutchinson h as already donated $5,000. Roseville wants to pledge some of its state snowplowing money and hopes other cities will consider similar action. To help cities and other organizations make donations, the League has House to take up ROW bill Tim Busse . The Minnesota House is expected to take up the rights of way bill sometime this week, and the bill could conceivably be in front of the Gover- nor soon. Representative Loren Jennings (DFL -Rush City), author of the House rights of way bill, has agreed to replace his bill with the language of the Senate bill. The Senate over- whelmingly approved SF 442 by a 49 to I vote on April 23. If the House approves that language without any amendments, the bill would then go to Governor Carlson for his signature or veto. The bill that will go before the House is the product of negotiations between local governments and telecommunications representatives. For cities, the bill would provide important confirmation and clarifica- tion of municipal authority to manage their public rights of way. The bill also recognizes that rights of way users should compensate local units of government for management costs and for costs resulting from use of the rights of way, such as when that use causes decreased pavement life. Lastly, the bill appropriately recog- nizes and reserves state authority to impose rights of way use standards when necessary to preserve competi- tive neutrality among rights of way users and to permit the efficient use of technology. At the same time, the bill would maintain the authority of local units of government to create and enforce local construction standards for the orderly use of the rights of way. The passage of rights of way legislation became even more neces- sary in mid -April when the Minnesota Supreme Court announced it would not review the Court of Appeals decision in the Redwood Falls rights of way case. The decision closed any legal avenues for cities to retain management authority of the public rights of way. The Supreme Court's decision, along with the lack of clarity in existing law and the unfavorable and ambiguous nature of the Appeals Court decision make legislative action this session even more imperative. It to �G� /N F � RMAr ��N created the LMC Flood Recovery Fund. This fund is being handled by the League of Minnesota Cities Research Foundation. Donations are tax - exempt. All money received will be distributed to cities needing assistance to restore municipal operations. For more information, contact Finance Director Dave DuBord at (612) 281 -1200. Donations can be sent to: LMC Flood Recovery Fund 145 University Ave. W. St. Paul, MN 55102 -2044. Watch for more information in the next issue of Cities Bulletin. Ir Nominating committee members sought There are still spots open on the League nominating committee. The nominating commit- tee plays an important role in selecting the League Board of Directors at the LMC Annual Conference. The committee interviews Board candidates and pre- sents their recommendations to member cities at the LMC business meeting. City officials interested in serving on the nominating committee should contact Jim Miller or Sharon Klumpp. The LMC Board will appoint the nominating committee at its May 15 meeting. It April 30, 1997 Page 3 Coalition of Greater Minnesota Cities April 25, 1997 Contact: Laura Petersen 812.225.8840 CAPITOL FAX 3 1 \J L] E Reverse referendums Despite intense lobbying on the pan of the state Chamber of defeated on House Commerce and other business organizations, an amendment floor deleting the reverse referendum provision from the House Omnibus Tax bill passed on the House floor. Rep. Ted Winter (DFL.Ftitlda) sponsored the amoodmptt to remove the bad reverse referendum language from the bill. l ^ Business organizations lobbied hard to keep it; when it looked like it would be removed, the language was amended so that it affmW only cities over l o,000 and counties over 50,000. But Winter's amendment to take the entire j language out succeeded on a 78 -53 vote. Both Winter, Rep. Kevin Ooodno (R-Moorhead) and Rep. Gail Skarc (DFL- Bemidji) in gave excellent speeches support of removing this bad provision. This is especially good nova and cities should all or amd thanks to the rapWars (see attached list). Cities also should express diaappoitnhnmt with my local legls om who .rated against the Wieser ameodmam. This mean they supported the sad - government busineea lobby over their own city ofaeiels which could mean serious problems in the flrtutre. Cities will be mailed complete analyses of the Senate and House tax impacn sometime nett week, Land -use and The Senate to* p" overwhelmingly, the land - annezation bill ue/annexanion deal (S.F. 738) agreed to by counties, cities passes Senate floor; and towns; only six senators voted against the provision. Late last nights, the House passed the omnibus State provisions in House Government Operations Bill which contained the land - also passed uWannexation language. There were several attempts to delete the language and make other bad changes; none of the attempts by the legislators or township reps to do so were successful. Special thanks should be given to Rep. Tom Rukavina, Rep. Ann Rest, Rep. Joe Opatz, Rep. Dee Long, and Rep. Leslie Schumacher for their opposition to the amendments offered on the House floor. A big thank you also should go out to Sen. Jim Vickerman, Sen. John Hottinger, and Sen. Steve Morse for their efforts in the Senate to pw the land- uselanaexation bill. TO'd ez:GT LeST -52 -bO H.F. NO. 2163 DATE - 4 -25 -97 RULE 1.10 SEQUENCE NO. - 1765 AMENDMENT 265 \ • The question was taken on the V " and the roll was called. There were 78 yeas and 53 nays as follows: f iii■ iiiiiiifii�iiiiiiii i r. iiii iiiiiiiiiiiiiliC N Abrams : Y Kahn N Pawlenty — N Anderson, B. : Y Kalis Y Paymar 0 Anderson, I. N Kelso Y Pelowski Y Bakk N Kielkucki Y Peterson N Bettermann Y Kinkel N Pugh Y Biernat N Knight Y Rest N Bishop N Knoblach Y Reuter Y Boudreau N Koppendrayer Y Rhodes N Bradley Y Koskinen N Rifenberg Y Broecker N Kraus N Rostberg Y Carlson N Krinkie Y Rukavina N Chaudhary Y Kubly Y Schumacher Y Clark Y Kuisle N Seagren N Commers Y Larsen N Seifert Y Daggett Y Leighton Y Sekhon Y Davids N Leppik Y Skare Y Dawkins Y Lieder Y Skoglund N Dehler N Lindner Y Slawik Y Delmont Y Long N Smith • Y Dempsey N Luther Y Solberg Y Dorn N Macklin N Stanek Y Entenza 0 Mahon N Stang N Erhardt Y Mares N Sviggum Y Evans Y Mariani Y Swenson, D. N Farrell Y Marko N Swenson, H. Y Finseth N McCollum N Sykora Y Folliard N McElroy N Tingelstad Y Garcia : Y McGuire : Y Tomassoni Y Goodno N Milbert : Y Tompkins Y Greenfield N Molnau N Trimble Y Greiling N Mulder Y Tuma Y Gunther N Mullery Y Tunheim Y Haas Y Munger N Van Dellen Y Harder Y Murphy 0 Vlckerman Y Hasakamp Y Ness Y wagenius Y Hausman Y Nornes Y Weaver Y Hilty Y Olson, E. Y Wejcman N Holston N Olson, M. N Wenzel Y Huntley N Opatz Y Westfall Y Jares Y Orfleld N Westrom Y Jefferson N Osskopp Y Winter N Jennings Y Osthoff N wolf Y Johnson, A. N Otremba Y Workman Y Johnson, R. Y Ozmsnt N Spk. Carruthers Y Juhnke N Paulsen . 1 20'd OV:SL c66L -s_ -70 I ' lay University Avenue West, St. Phut, MN 55103 -2044 Phone: (61.2) 281.1200 • (800) 925 -1122 L,, w o f mh " PfOa° Ciew Fu: 1612) 281 -1299 • TDD (612) 281 -1290 06" LMC 0 9 " To: Minnesota Mayon From: The League of Minnesota Cities Re: Help for flood affected cities Cities helping cities- -it's a natural phenomenon when disaster strikes. City response to the unprecedented flooding is overwhelming. We heard from many cities last week: Cities needing flood assistance information. and cities offering their equipment, personnel and even money to meet those needs. C J tVith that in mind, we've created the Cities Helping Cities program. Through the program, we plan to match cities that need help in restoring municipal operations and services with cities that have equipment and personnel available. We've spent the last few days calling cities directly affected by floods. They told us what help they need, and we've entered that information into a database. If your city needs assistance and has not been contacted, call Theresis Perry at (612) 281-1200 or (800) 925-1122. Now we need to know what is available. The second page of this fax lists equipment and personnel needed by flood affected cities. If your city is able to provide assistance, please complete the form and fax it back to the League. We will then try to match up needs with the assistance available. Fax your completed forms to the League at (612) 281 -1235. Keep in mind that clean -up and recovery efforts will go on for many months in the most severely flooded cities. Even if your city can't help now, help will be needed in the coming months /. Many cities have asked us if they could donate money to help flood - stricken cities. Hutchinson _ has already donated $5,000. Roseville IN-ants to pledge some of its state snowplowing money and hopes other cities will consider similar action. To help cities and other organisations make donations, the League has created the LMC Flood Recovery Fund. This fund is being handled by the I eague of Minnesota Cities Research Foundation. All money received will be distributed to cities needing assistance to restore municipal operations. For more information contact Finance Director Dave DuBord at (612) 281 -1200. Donations can be sent to: The League of Minnesota Cities' Flood Recovery Fund 145 University Ave. W. St. Paul, MN 55102 -2044. Thank you for your help. If You have any questions, contact Theresia Perry at (612) 281 -1200 or (800) 925 -1122. / u AN EQUAL OPPORTUNITY /ArrrRmATTJE ACTION EMPLOYER I'd S3I1IJ WW d0 3f1JH3 Wd80:2r G6. OE bdti Cities Helping Cities -he following is a list of some of .what will be needed to get affected cotnmunities back in the business to provide any of the of providing for the health, safety' and welfare of citizens. If your city is able item. list the number available and indicate when the equipment `ollowing. please circle the appropriate %vould be available. Fax this form back to the League at (612) 281 -1235. or personnel r> Personnel How many? Equipment How man} , When available? When available? Administrative personnel Front end loaders �— B officials %lotor graders �- -� Civil engineer - - Sweepers �r FAIT's -- Dump trucks — �— Fire fighters - -1� Generators �— Office help 1� Pumps Operations —�— • Hoses Police officers ---- Traffic control signs Records management — Communications equipment �— v mechanics �— Other Watery Wastewater plant operators city Contact person Title Phone Fax If you have any questions, contact Theresia Perry at (612) 281 -1200 or (800) 925 -2211 3'd =II- NW d0 3Mti3N d86,7t -o. ©c dolt i LMC 3'd =II- NW d0 3Mti3N d86,7t -o. ©c dolt r� Citizen -Based Budgeting: The Redding, California, Experiment ■ n the early 1990s, California state government pulled back funds from cities to solve state finan- cial problems. A voter referendum had frozen property taxes statewide several years earlier, and a soft economy had crimped city revenues in such areas as sales taxes and building permit fees. Red- ding, which operated under the council - manager form of government, had eaten into its re- serves, and a newly elected majority of the five- person city council saw difficult times coming. As in most 0 government operations, only a frac- tion of the citizenry knew why the city spent what it did, and many were generally critical (perhaps even dis- trustful) of any government budget. When the council hired Mike War- ren for the city manager position, it gave him a clear mandate to get the 5160 million budget in order, includ- ing an electric utility budget —and to do so without damaging public con- fidence in city services. The council targeted a reserve of no less than 5 percent in the $35 million general fund, and councilmembers sought a 10 -year, rolling operating and 18 MAY 1997 f capital financial plan for all funds, an easier -to- understand budget, and a higher level of citizen satisfaction —not small tasks. opening Up the Budget Process Before coming to Redding, dike Warren — had tested citizen -based budgeting, as he termed it, in the San Francisco Bay community of Benicia. He immediately took the step of involving citizens in Redding's budget preparation process before the proposed budget had reached the council. Experience had shown him that the basic budget process should not be abandoned, and he believed that the process and decisions at the staff level were so sound that there was no reason to separate it from the public. Warren scheduled citizen involve- ment following the normal department- head and finance - department meetings for budget planning. Citizens got in- volved during the city manager review. They reviewed virtually every number and every city manager decision; they attended every meeting between the de- partment head and the city manager (see accompanying diagram). How Citizens Were Selected The manager asked the chamber of commerce for recommendations and also selected a citizen at large. Citizens chosen met the following criteria: Willingness to commit to the time re- quired, which was unknown at the time of selection. No hidden personal agenda. The opinion that the phrase "govern- ment efficiencies" might be an oxy- moron. Fairness and honesty in their com- munications with others. Successful management of their own budgets. General respect from people who knew them. C itizens knew that their opinions had an impact because the manager most often implemented their recommendations for what to do on particular issues. After reviewing candidates, the man- ager selected the citizen participants. For the 1995 -1996 budget review, the owner of a cola bottling franchise (citizen at large) and the owner of a well -known restaurant (chamber of commerce rep- resentative) were selected as citizen par- ticipants. During the 1996 -1997 budget preparation, the citizen at large was re- placed by a CPA, while the chamber of commerce representative was retained for continuity purposes. Time and Training Required Records for the first two years show that a four -week review and deliberation process was required for the 5161 mil- lion operating and capital budgets. Citi- zen participants spent about 10 to 30 hours preparing for the review and about 35 hours in the review itself, as each department presented its budget to the city manager and the citizen com- mittee. Questions and comments from the citizens often were the same ques- tions that the manager would have asked. Training of the citizen participants beforehand was minimal. Two two -inch, loose -leaf budget binders were provided about a week in advance of the four- week review meetings. The binders in- cluded comments from finance and from the operating departments where there was a difference of opinion. No special training was given to the citizen participants in either public finance or accounting. The notion of segregated funds needed explaining, however, and proved to be an important point, for the private sector citizens were used to a more interchangeable funding process. Training of the staff was done by the city manager, who explained what the role of the citizen participant would be in the review process. Staff members were universally apprehensive that citi- zens would not be able to understand their rationale in specialized depart- ments where professional expertise was required (utilities, bridges, mainte- nance, public works, and the like). After all, the concept of involving citizens — especially those who were critical or skeptical of city government —was vir- tually unprecedented in California. City employees feared that the out- come of citizen participation might be disruptive, as these citizens would be- come "armed" with information on what city employees earned, how many em- ployees worked in each department, and how much money was spent by each. un- certainty also existed as to the relative weight that their professional Judgment would carry, versus that of the citizen participants, when the budget finally reached the council. As Police Chief Bob Blankenship said, "At first, we wondered who we reported to—the city manager, the citizens, or the city council ?" Results of Citizen Participation 0 0 The first year, citizen participants were enthusiastic about their access to the budget process and about its openness. They developed excellent insight into the operation of the city and how it was financed. Thanks to this insight, they agreed that money was being well spent, services were being maximized, and city employees were professionals. t A ''] PUBLIC MANAGEMENT 19 Citizen -Based Budget Process in Redding, California City Council Decides on Final Budget City Manager Submits Final Budget Recommendation Department Heads, City Manager, and Citizen Appointees Meet on Budget Financial Administrator Reviews Department Requests and Inserts Comments, Recom- mending Support, Change, or Denial of Departmental Requests Department Heads Draw Up Internal Budget Allocations for Coming Fiscal Year Department Heads Receive Overall Budget Limits for Coming Fiscal Year 20 In the second year, the citizen partici- pants felt even stronger. As the restau- rant owner said, the experience `was a tremendous personal education in how the city operates." Citizens were not merely observing during the budget meetings. Quite often, the city manager would turn to the citizens and ask them for their opin- ions on a department request, or what they thought about a request for addi- tional staff or money. Citizens knew that their opinions had an impact because the manager most often implemented their recommendations for what to do on particular issues. The dilemma for the citizens was that they now knew the overall financial constraints within which the city had to operate; often, the citizen participants wanted to give a de- partment what it was requesting but knew that the money just wasn't there. Councilmembers were delighted with the added thoroughness of the process and with the degreee of citizen involve- ment in the proposed budget. It made their task smoother and faster, and it in- creased their confidence that a request being presented to them had passed an additional common -sense review. Following are some maior outcomes of the citizen -based budgeting experi- mentin Redding, Increased confidence in the city budget. As the council finally re- viewed the budget, citizen participants not only sat in the council chambers but often spoke out on why a budget ele- ment should be approved. This was an unforeseen, unsolicited development. As one councilman said, "I can't turn to page 78 of the budget and find a list of the fat. When businessmen and women say this budget makes sense, and one year ago they were vocal critics, that means something- Reduced public criticism. As active and respected members of the business community, the citizen participants ex- plained and defended the process within the community throughout the year. As the citizen from the cola bottling com- pam said, ". . . [the process] created Year-round, de facto ambassadors for the integrity of city government." ,1J- though the chamber of commerce and the business community had tradition- ally been supportive of government, now they no longer felt "on the outside," and they had a better understanding of how and why their council made deci- sions. Raised confidence in the city manager and the finance depart- ment. Somewhat surprising, perhaps, was a complete tack of any criticism of the manager or the finance and budget directors in this process. No one felt that they were shirking their responsibilities by sharing the process with citizens. On the contrary, everyone felt more comfortable with the addition of citizen accountability and with more openness in the process. As Warren stated, "Rea- sonable people, with the same informa- tion, will come to very similar decisions. ... So what's there to be afraid of?" Opening of other city processes to citizen input. As one coun- cilmember noted, "This [budget] pro- cess worked so well that we have in- volved citizens in several look -ahead processes, such as electrical capacity planning, site location planning, overall city planning, etc." No lobbying for pet projects by any citizen in the process. It may be a by- product of the size of the city, or the feeling of being in the public spot- light, or Just the plain good sense used in choosing the participants, but no one could detect anything other than objec- tivity in the citizen participants. As one councilman said, "In reality, there was no quid pro quo. Maybe the criterion of selecting citizens who have a healthy skepticism about government was smarter than we knew!" Superiority of small review groups. Predictions for the future of MAY 1997 the citizen involvement process hold that the citizen participants will stay few in number (a maximum of two or three), that they will continue to exam- ine the entire budget, and that at least one citizen member will remain for an additional year so the citizen contingent will retain the benefit of experience. More training of citizen participants is — likely; suggestions include a four -hour class on government budgeting, to be taught by the finance manager. Accelerated search for Increas- Ing accountability. This process raised confidence levels, inspired de facto ambassadors for government throughout the city, and brought real ideas and improvements to the manage- ment process. The collegial discussion of how government can operate more ef- fectively and efficiently has carried with it the promise of increased accountabil- ity through the widening of viewpoints at budget time. optional and Beneficial The idea of citizen -based budgeting is neither difficult to employ nor risky in its deplovment. It is an optional step that requires the local government man- ager and the governing body to agree on the reasons for taking this step to involve citizens. It brings benefits in the disci- pline of broader accountability and in the development of credible year -round advocates for the budget and manage- ment processes. The key to the success of citizen - based budgeting in Redding has been the willingness of appointed and elected officials to honestly embrace the views of each concerned citizen participant. Rather than detracting from the motiva- tion and skills of professional staff, the experiment appears to have raised their credibility with taxpayers through the openness of the process. The effects linger year -round through the outspo- ken support of citizens who have partic- ipated in the budget process. Perhaps, City Manager Michael \Mar- ren has said it best: "If you are following a good process, have a professional staff, are careful in y our deliberation, and make sound decisions, there is no reason not to involve citizens. Good managers and their staff should be proud of their work, not embarrassed or trying to hide from the citizens." 13111 Vic Preisser, adjunct professor of man- agement at the University of California (Extension), Berkeley, is a citizen of Redding, California. For follow -up information or fur- ther details on the process as prac- ticed in Redding, California, contact Ana Diaz, secretary to City Manager Mike �Varren, at 916/225-4060. job opportunities bulletin for minorities ®MA and women In local government ' Local Government Job Opportunities J.O.B. is a service of the International City /County Management Association and z, other local government public interest groups. J.O.B., ICMA. 777 North Capitol Street. N.E., Suite 500 Washington, DC 20002 -4201 Phone; 202/962 -3650 Fax: 202/962 -3500 • Dave � �'' money left over after the next budget cut. Municipal fleets feel the pressure of cost containment — just like the private sector. With more than 550 full -ser- vice leasing and maintenance facilities, National-ease can help. To explore outsourcing fleet maintenance or full- service truck leasing agreements on new or existing equipment, call Bob Bowes at 1- 800-SAY -NTLS. FAX 1- 630 - 953 -0040 N NationaLease One South 450 Summit Avenue Oakbrook Terrace, IL 60181 1LB Lftm GREENZHOP" Environmentally Safe Shops PUBLIC MANAGEMENT 21 DAVID B. ARNOLD' STEVEN A. ANDERSON G. BARRY ANDERSON' LAURA K. FRETLAND PAUL O. DOVE ** JANE VAN VALKENBURG RICHARD G. McGEE CATHRYN D. REHER WALTER P. MICHELS, III 'ALSO ADMITTED IN TEAS ANO NEW YORK ARNOLD, ANDERSON & DOVE PROFESSIONAL LIMITED LIABILITY PARTNERSHIP ATTORNEYS AT LAW 101 PARK PLACE HUTCHINSON, MINNESOTA 55350-2563 (320) 587 -7575 FAX (320) 567 -4096 RESIDENT ATTORNEY G. BARRY ANDERSON April 29, 1997 + n 99 )F HUTCHt ..ON OF COUNSEL ARTHUR L. DOTEN TERRI A. BLOMFELT 5881 CEDAR LAKE ROAD MINNEAPOLIS, MINNESOTA 55416 (612) 545 -9000 FAX (612) 545 -1793 FAX (612) 542 -9210 501 SOUTH FOURTH STREET PRINCETON, MINNESOTA 55371 (612) 389 -2214 FAX (612) 389 -5506 Mr. Crary D. Plotz City Administrator Hutchinson City Center 111 Hassan Street S.E. Hutchinson, Mn. 55350 FOR YOUR INFORMAT101V Re: Property Tax Issues Our File No. 3188 -87001 Dear Gary: I am enclosing herewith two articles which appeared in the Thursday, April 24, 1997 St. Paul Pioneer Press dealing with property taxes, one written by Dan Salomone and the other written by Susan Haigh. Both contain interesting perspectives on proposed property tax reform which is now underway in St. Paul. I pass these articles along and I would ask that you include this correspondence as well as the articles in the next City Council packet simply as a "for your information" item for Council members. By the time we next meet, in early May, the shape of reform will have become a great deal clearer, I believe. Should you have any questions regarding any of the foregoing, please advise. Thank you. Best regards. Very truly yours, RNOLD, ANDERSON & DOVE, PLLP Barry Ajdderson If GBAam Enclosures CERTIFIED AS A CIVIL TRIAL SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION — CERTIFIED AS A REAL PROPERTY LAW SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION it I Localities deserve t autonomy, but homeowners should have to pay the full cost of the services — and luxuries — d here's serious talk at the Capitol about reimposing Idea[ govern- ment levy limits. Some f properly [ax re ormers would limit the growth in city and county property much titles and counties could increase their annual taxes to the rate of III Drapery tax levies. Here are two views on the wisdom Lion. Some would add I o allowances for population DAN SALOMONE or household growth. GJEST Others would allow (701,11 AINIST gr e a le r- than - i of l a to IT -- growth only if the pro- posed Increases are put to a local vote. Why this renewed interest in levy limits? Legislators want to provide both property tax reform and relief this session. The two are not the same ax "Relief' means lower property tes, especially for homeowners. "Reform" means reducing the property lax disparities that currently exist between home- stead property (owncrucvpied homes) and nonhome- stead (businesses and apartments). Minnesota businesses and apartments new pay the nation's highest property tax rates Fixing this means faxes on homes will rise unless local tax levies are reduced through spending cuts or more state aid Imoney from stale income and sales taxes), Because of the slate's projected surplus, legislators see an opportunity to reduce class disparities while protecting homeowners with $300 million to $400 million in school property tax cuts financed with a like amount of additional slate aid. But after 30 years of experience buying down property taxes, only to see them rise again, legislators want some assurance that their efforts to cut property taxes will not be convected out by Ide decisions al decisio to spend ee and tax more. They s levy limits as providing that assurance, at least in the short rum But what about Ide rno al amomy? If their resdents g pay 'h are willing ht a ' the price, s shouldn't Ideal g ovem- m t a s ends the allowed to spend and lax for local I need_. and even for Ideal luxuries? Most tax experts would say yes. But that's not how our property Lax works. Because of our classification system, the resident price for Ideal services is discounted an average of 32 percent. We run a perpetual "one -third off' sale f levy limits. —The Editor for homeowners. To finance the sale, we use an average 125 per- cent price markup for business property and a 45 percent markup on apartments. Our perpetual blue - light special for homeowners is one of the nation's biggest markdowns. The markups on business and apartments are among the highest. While legislators aren't likely to admit it, the sleep homeowner dis- munls make them Iii confident that local govern- ments can stand up to local spending interests. The Minnesota Taxpayers Association has tradi- tionally opposed the reintroduction of levy limits. In our view, the state should partially or fully under- write local spending of statewide significance or interest, and other local spending slmuld be financed mainly by Ideal residents. Our view embraces local autonomy for Ideal imCf- ests, but also embraces the notion that residents should be asked to pay most of the costs associated with local interest spending. Local governments applaud our position on local autonomy, but lobby against changes that would tome them to confront their residents with the true cost of their spending. Local autonomy demands accountability. Instead of imposing ievy limits. the Legislature should ask local governments to support charging the property tax system to end the discounts and mansions at "is needed 1. Since accountability let's at tae mar r g let's find out which Corm Ideal government prefers — levy limits or cost -baseci homeowner pricing. SalOmoeC is oucWv, I neon, of too Nsni to Taxpayers 4asoaa[wd, a non vro,. group that emmoles Ine Iaxanon nod erfb i, m government They want and badly need property tax reform — but caps on levies aren't answer. T he governor and Minnesota Legislature are debating several excit- ing property tax reform F proposals; we applaud their commitment to reform. Ramsey County taxpayers, homeowners and businesses, pay too much in property taxes, and we need mean- SUSAN M. , .gih comprehensive prop- HAIGH erty tax reform in 1997. cUrsT In 1995. Ramsey County Cf 11UNIN6T joined with the city of St. Paul and the St. Paul School Board to bring together other Ideal units of government to advocate major fiscal reform to reduce property taxes. Included in our proi at is the belief that more education expenses have to be funded from sources Other than prop- erty taxes. While we like much of what we see In several of the proposals in play, we want to urge 14211113111 tors not to reenact a failed tax policy of the past levy Limits. Levy limits are arbitrary ceil- ings on how much counties and cities can raise properly tax levies. Levy limits are a solution to a problem that doesn't exist. Levy limits were imposed in Mimasmar in 1971, as part of what was then called the "MLlmasota Miracle;' the massive infusion of slate money into school and local governments. Levy limits were enacted by state policy- makers who wanted to ensure that local government officials didn't gobble up the properly tax reductions that were supposed to result from [be new state funding. Low limits didn't work. however. For example, during the 1987 -1992 period, when levy limits were still in force. Ramsey County's property taxes rose an average of 8.8 percent annually. Levy limits were repealed in 1992. Since that time, the average increase in Ramsey County's properly tax levies has been 2 percent. Similar results were seen In Ilemopin County. During the 1987 -1992 period. while levies were limited, Reductiin County's property taxes rose an average of 8 percent annually. Since the repeal of levy limits. Hennepin County has had increases averaging 3.3 percent And otacr local governments also showed simi- lar results. For Minneapolis and SL Paul, Lax levies, adjusted for inflation, are lower today than (hey were in 1990. Simply said, state - imposed levy limits result in higher, not lower, property taxes . flow is it possible Ural taxes go up faster when there is a law limiting levy increases? Levy limits virtually eliminate the responsibili- ty and accountability of local elected officials to their taxpayers. Instead, local government tax decisions become focused on the Legislature's levy exceptions and how to build the local levy as a hedge against future expenditure nerds. Ramsey County taxpayers have proved to be much better at controlling our spending than the =late, as demonstrated through our Inlh- in-taxa- Imn hearings, BnacLing levy limits is not proper - Iv lax reform. If We Legislature passes cumpre- hrnsive tax reform by increasing stale funding for schools, savings to property taxpayers will n u b new county spen he cafe g not Y Y Fhc . Neither P the county nor our taxpayers would let this hap- pen. ii shelve levy limits and get back to the work of real fiscal and property lax reform. I largo , chpmvuman urhhc Haehscy Cm.nLy Ward 7be Issm • The Lax hills now advancing In bath houses of the Minnesota Legislature would impose hunts on how Pr a.r, .r, —,