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cp12-14-21HUTCHINSON CITY COUNCIL MEETING AGENDA TUESDAY, DECEMBER 14, 2021 CITY CENTER — COUNCIL CHAMBERS ('The City Council is provided background information for agenda items in advance by city staff, committees and boards. Many decisions regarding agenda items are based upon this information as well as: City policy and practices, inputfrom constituents, and other questions or information that has not yet been presented or discussed regarding an agenda item) 1. CALL MEETING TO ORDER — 5:30 P.M. (a) Approve the Council agenda and any agenda additions and/or corrections 2. INVOCATION (The invocation is a voluntary expression of theprivate citizen, to and for the City Council, and is not intended to affiliate the City Council with, or express the City Council's preference for, any religious/spiritual organization. The views or beliefs expressed by the invocation speaker have not been previous y reviewed or approved by the Council or staff) 3. PLEDGE OF ALLEGIANCE 4. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY (a) Resolution No. 15382 — Resolution Accepting $2500 Donation from Hutchinson Rotary Club for Additional Amenities at Rotary Park PUBLIC COMMENTS (I his is an opportunity or members of the public to address the City Council. If the topic you would like to discuss is on the agenda, please ask the Mayor if he will be acceptingpublic comments during the agenda item if not a public hearing. Ifyou have a question, concern or comment, please ask to be recognized by the mayor —state your name and address for the record. Please keep comments under 5 minutes. Individuals wishing to speakfor more than five minutes should ask to be included on the agenda in advance of the meeting. All comments are appreciated, butplease refrain from personal or derogatory attacks on individuals) 5. CITIZENS ADDRESSING THE CITY COUNCIL 6. APPROVAL OF MINUTES (a) Regular Meeting of November 23, 2021 (b) Truth in Taxation Hearing of December 7, 2021 CONSENT AGENDA (The items listedfor consideration will be enacted by one motion unless the Mayor, a member of the City Council or a city staff member requests an item to be removed. Traditionally items are not discussed) 7. APPROVAL OF CONSENT AGENDA I (a) Consideration for Approval of Off -Site Gambling for Hutchinson Hockey Association at Crow River Golf Club on February 5, 2022 (b) Consideration for Approval of Issuing Short -Term Gambling License to McLeod County Pheasants Forever on March 12, 2022, at McLeod County Fairgrounds (c) Consideration for Approval of 2022 License Renewals (d) Consideration for Approval of 2022 Invocation Schedule (e) Consideration for Approval of Appointments to Senior Advisory Board CITY COUNCIL AGENDA —December 14, 2021 Reappointment of Al Barkeim to January 2025 Appointment of Randy Kandt to January 2024 (filling Michael Becker's term) (f) Appointment of Kathy Silvernale to Hutchinson Utilities Commission to December 2026 (g) Consideration for Approval of Use of Portion of City Parking Lot for Private Food Truck for Graduation Parry on May 22, 2022, as Requested by Robin Dettman (h) Consideration for Approval of Improvement Project Change Order Nos, 4, 5, 6, and 7 — Wastewater Treatment Facility Headworks Improvements (Letting No. 3, Project No. 21-03) (i) Consideration for Approval of Amended and Restated Development Agreement Between City of Hutchinson and Silver Lake Capital Partners, LLC (j) Consideration for Approval of Resolution No. 15379 — Resolution to Sell at Auction Forfeited Vehicles (k) Claims, Appropriations and Contract Payments — Register A 8. APPROVAL OF CONSENT AGENDA II (a) Claims, Appropriations and Contract Payments — Register B PUBLIC HEARINGS — 6:00 P.M. 9. MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 4 AND THE CREATION OF A TAX INCREMENT FINANCING PLAN FOR THE ESTABLISHMENT OF TIF DISTRICT NO. 4-22 (A REDEVELOPMENT DISTRICT) (a) Approve/Deny Resolution No. 15383 — Resolution Approving a Modification of the Development Program for Development District No. 4 and the Creation of a Tax Increment Financing Plan for the Establishment of TIF District No. 4-22 (A Redevelopment District) (b) Approve/Deny Resolution No. 15384 — Resolution Approving the Terms of a $30,000 Tax Increment Interfund Loan in Connection with TIF District No. 4-22 10. PROPOSED REVISION OF BUSINESS SUBSIDIES GOALS FOR HUTCHCOBBLE LLC (a) Approve/Deny Resolution No. 153 85 — Resolution Adopting Revised Business Subsidies Goals (Job Creation) for HutchCobble LLC purpose of this portion of the agenda is to provide the ounci with information necessary to craft wise policy. Ides items like monthly or annual reports and communications from other entities.) 11. REVIEW OF TRUTH IN TAXATION HEARING HELD DECEMBER 7, 2021 12. DISCUSSION OF VOTING HOURS FOR FEBRUARY 8, 2022, CITY SPECIAL ELECTION UNFINISHED BUSINESS 2 CITY COUNCIL AGENDA December 14, 2021 13. APPROVE/DENY SECOND READING AND ADOPTION OF ORDINANCE NO. 21-827 — AN ORDINANCE AUTHORIZING SALE OF MUNICIPALLY -OWNED LAND TO HUTCH UPTOWN COMMONS, LLC NEW BUSINESS 14. APPROVE/DENY RESOLUTION NO. 15381 - RESOLUTION AUTHORIZING PREPAYMENT AND REDEMPTION OF OUTSTANDING SERIES 2013A BONDS GOVERNANCE (The purpose o t us portion of the agenda is to deal with organizational development issues, includingpolicies, performances, and other matters that manage the logistics of the organization. May include monitoring reports, policy development and governance process items) 15. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS �a� Hutchinson Housing & Redevelopment Authority Board Minutes from October 19, 2021 c Library Board Minutes from October 25, 2021 �d) Hutchinson Economic Development Authority Board Minutes from October 27, 2021 e) Public Arts Commission Minutes from November 10, 2021 MISCELLANEOUS 16. STAFF UPDATES 17. COUNCIL/MAYOR UPDATE ADJOURNMENT cR HUTCHINSON CITY COUNCIL —HINSON Request for Board Action . ON PURPOSE. Resolution No. 15382 Hutchinson Rotary Park Donation Agenda Item: Department: PRCE LICENSE SECTION Meeting Date: 12/14/2021 Application Complete N/A Contact: Lynn Neumann Agenda Item Type: Presenter: n/a Reviewed by Staff ❑� Consent Agenda Time Requested (Minutes): 0 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: Hutchinson Rotary Club has made an ongoing commitment to make improvements and additions to Hutchinson Rotary Park. During their fundraising efforts, the club raised $2,500.00 to donate to the City of Hutchinson. The funds will be used to purchase additional amenities to add to the existing park features. Staff is requesting City Council authorization to accept the $2,500.00 donation. Two members of the Rotary Club members will be in attendance at the council meeting to present the check and talk about their fundraising efforts. They would also like a photo of them presenting the check. BOARD ACTION REQUESTED: Approve Resolution No. 15382 to accept the donation of $2,500.00 for improvements to Hutchinson Rotary Park. Fiscal Impact: Funding Source: Neighborhood Donation FTE Impact: Budget Change: No 0 Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: N/A Remaining Cost: $ 0.00 Funding Source: Neighborhood Donation CITY OF HUTCHINSON RESOLUTION NO. 15382 RESOLUTION ACCEPTING DONATION WHEREAS, the City of Hutchinson is generally authorized to accept donations of real and personal property pursuant to Minnesota Statutes Section 465.03 for the benefit of its citizens, and is specifically authorized to accept gifts and bequests for the benefit of recreational services pursuant to Minnesota Statutes Section 471.17; and WHEREAS, the following persons or entities have offered to contribute the cash amounts set forth below to the city: Name of Donor Amount Donation Date Hutchinson Rotary Club $2,500.00 12/14/2021 WHEREAS, such a donation have been contributed to the City of Hutchinson Parks Department towards additional amenities to Rotary Park. WHEREAS, the City Council finds that it is appropriate to accept the donation offered. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA, AS FOLLOWS: THAT, the donation described above is hereby accepted by the City of Hutchinson. Adopted by the City Council this 14th day of December 2021. ATTESTED: Matthew Jaunich City Administrator APPROVED: Gary T. Forcier Mayor HUTCHINSON CITY COUNCIL MEETING MINUTES TUESDAY, NOVEMBER 23, 2021 CITY CENTER — COUNCIL CHAMBERS ('The City Council is provided background information for agenda items in advance by city staff, committees and boards. Many decisions regarding agenda items are based upon this information as well as: City policy and practices, inputfrom constituents, and other questions or information that has not yet been presented or discussed regarding an agenda item) 1. CALL MEETING TO ORDER — 5:30 P.M. Mayor Gary Forcier called the meeting to order. Members present were Mary Christensen, Pat May, and Chad Czmowski. Member absent was Dave Sebesta. Others present were Matt Jaumch, City Administrator, and Marc Sebora, City Attorney. (a) Approve the Council agenda and any agenda additions and/or corrections Matt Jaunich, City Administrator, asked that Item 7(i) be removed from the agenda. Motion by Czmowski, second by Christensen, to approve the agenda with Item 7(i) removed. Motion carried unanimously. 2. INVOCATION — Faith Lutheran Church (The invocation is a voluntary expression of theprivate citizen, to and for the City Council, and is not intended to affiliate the City Council with, or express the City Council's preference for, any religious/spiritual organization. The views or beliefs expressed by the invocation speaker have not been previous y reviewed or approved by the Council or staff) 3. PLEDGE OF ALLEGIANCE 4. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY Fire Chief Mike Schumann recognized Clayton Moore, Boy Scot Troop 623, who is working on an Eagle Scout project. He and his troop are handing out fliers to each property owner that has a fire hydrant in front of their homes asking them to remove snow from around their hydrants. They may be working on a storm drain program later in the year as well. Chief Schumann noted that he will ask Moore and his troop to present before the Council at a later date. (a) Resolution No. 15377 — Accepting $1250 Donation from Various Donors for Flagpole Set-up at Senior Center Motion by Czmowski, second by May, to approve Resolution No. 15377. Motion carried unanimously. PUBLIC COMMENTS (T is is an opportunity or members of the public to address the City Council. If the topic you would like to discuss is on the agenda, please ask the Mayor if he will be acceptingpublic comments during the agenda item if not a public hearing. Ifyou have a question, concern or comment, please ask to e recognized by the mayor —state your name and address for the record. Please keep comments under 5 minutes. Individuals wishing to speakfor more than five minutes should ask to be included on the agenda in advance of the meeting. All comments are appreciated, butplease refrain from personal or derogatory attacks on individuals) 5. CITIZENS ADDRESSING THE CITY COUNCIL 6. APPROVAL OF MINUTES (a) Regular Meeting of November 9, 2021 (b) Council Workshop of November 9, 2021 CITY COUNCIL MINUTES — November 23, 2021 Motion by Christensen, second by Czmowski, to approve minutes as presented. Motion carried unanimously. CONSENT AGENDA (The items listedfor consideration will be enacted by one motion unless the Mayor, a member of the City Council or a city staff member requests an item to be removed. Traditionally items are not discussed) 7. APPROVAL OF CONSENT AGENDA (a) Consideration for Approval of Purchase of Bobcat Skid Loader for Parks Department (b) Consideration for Approval To Sell at Auction 1990 Chevrolet Tanker Truck (c) Consideration for Approval of Resolution No. 15373 — Resolution Authorizing Disposal of Parks and Recreation Department Surplus Property (d) Consideration for Approval of Resolution No. 15374 — Resolution Authorizing Disposal of Creekside Surplus Property (e) Consideration for Approval of Resolution No. 15375 - Resolution Establishing Location for Traffic Control Devices (No Parking on Shady Ridge Road NW) (f) Consideration for Approval of Resolution No. 15376 — Resolution Calling for a Public Hearing on the Proposed Revision of Business Subsidies Goals for HutchCobble LLC (g) Consideration for Approval of Resolution No. 15378 — Resolution Calling for a Public Hearing on the Proposed Adoption of a Modification to the Development Program for Development District No. 4 and Establishment of TIF District No. 4-22 (A Redevelopment District) — Jorgensen Hotel (h) Consideration for Approval of Amendment to Grant Agreement with Minnesota Department of Employment & Economic Development for UPONOR Job Creation • 0) Claims, Appropriations and Contract Payments Motion by May, second by Christensen, to approve consent agenda. Motion carried unanimously. PUBLIC HEARINGS — 6:00 P.M. - NONE purpose of this portion of the agenda is to provide the Council with information necessary to craft wise policy. Ides items like monthly or annual reports and communications from other entities.) 8. REVIEW OF 2021 PAVEMENT MANAGEMENT PROGRAM REPORT John Olson, Public Works Manager, presented before the Council. Mr. Olson provided an overview 2 CITY COUNCIL MINUTES November 23, 2021 of the City's 2021 pavement management program. The full report is included in the City Council packet. 9. REVIEW OF THE 2021 COMPENSATION STUDY Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich explained that the City made the decision several years ago to have compensation studies completed every five years — alternating between a comprehensive review and a smaller -scale version. The study completed this year was a smaller -scale version from the comprehensive study done in 2016. The objectives of the study included reviewing job re-evaluation requests from managers and evaluating 20 jobs to confirm their grades; collecting market data for 32 benchmark jobs representing a cross-section example of jobs within the City; preparing compensation analytics with the purpose of understanding the overall position of City's compensation program relative to the external market; and preparing a summary of observations and recommendations. Mr. Jaunich noted that nationally the total salary increase budget was 2.9% in 2021 and is projected to increase by 3.3% in 2022. Key observations based on the review and analysis include: 32 jobs out of a total of 67 full-time jobs were benchmarked with the market; there were 59 employees in the benchmark jobs accounting for approximately 57% of total City employees; currently the City is administering its compensation program at 104% of range midpoint vs. 101.4% in 2016; the City's pay level is 100% market, however actual pay ratio for jobs in grades 170 and higher is 105% vs. 94.2% for jobs in grades 160 and lower; current salary range midpoints are at 96% of market mean indicating that they are lagging the market by 4%; the proposed 2022 salary structure incorporates a 4% market adjustment and a 3% projected market movement for next year. Basically, the earning potential of employees increases 7% as pay increases are performance -based. Mr. Jaunich noted that the most significant change is to the seasonal pay grid. The hourly wage increases are significant for all levels within the seasonal/temporary/part-time employees. Adjustments noted within the study will be brought before the Council in December for consideration of approval. 10. DISCUSSION ON THE PRELIMINARY BUDGET AND TAX LEVY FOR 2022 Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich noted that in September a 7% levy increase was proposed, mainly because of the construction of the new police facility. Staff has made adjustments to decrease that levy increase. These include changes to wage & benefits such as pay grade inflation shift to 7% from initial 2% assumption, impact from pay grade changes for affected employees, seasonal pay adjustment, 5% health premium reduction, engineering assistant 50% split with HRA, Event Center reorganization due to a retirement and other miscellaneous adjustments. Other budgetary changes include various increases to charges for service revenue, increase in Creekside transfer to General fund, various increases to supplies expense, and various decreases to services and charges expense. Staff is also proposing to adjust the debt on the new police facility and to use cash reserves to lessen the debt burden. With these adjustments, staff is now proposing a 4.4% levy increase. This proposal will be presented at the Truth in Taxation hearing on December 7, 2021. UNFINISHED BUSINESS CITY COUNCIL MINUTES — November 23, 2021 NEW BUSINESS 11. APPROVE/DENY FIRST READING OF ORDINANCE NO. 21-827 — AN ORDINANCE AUTHORIZING SALE OF MUNICIPALLY -OWNED LAND TO HUTCH UPTOWN COMMONS, LLC Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich explained that this land is where the Franklin House site was located and the old medical clinic and is proposed to be developed into townhomes. Motion by Czmowski, second by May, to approve first reading of Ordinance No. 21-827. Motion carried unanimously. 12. APPROVE/DENY ADVERTISEMENT FOR BIDS FOR BURICH ARENA ROOF AND WALL UPGRADES — EAST RINK Pete Filippi, Contegrity Group, presented before the Council. Mr. Filippi explained that this project includes new roofing, insulation, interior ceiling liner and covering the existing exterior walls with a new facade. The probable cost estimate for the project is $1,678,000. The facility fund currently has this amount reserved for this project to be completed in 2022. Motion by Christensen, second by May, to approve advertisement for bids for Burich Arena roof and wall upgrades — east rink. Motion carried unanimously. Matt Jaunich asked Mr. Filippi to give an update on the new police facility project. Mr. Filippi explained that the former Econo Foods building has been demolished and the north wall of the Liquor Hutch is being enhanced. Mr. Filippi spoke of the soils underneath the old Econo Foods building which has been deemed unusable as a base, therefore quite a bit of soil corrections will be necessary to construct the new building. GOVERNANCE (The purpose o t is portion of the agenda is to deal with organizational development issues, including policies, performances, and other matters that manage the logistics of the organization. May include monitoring reports, policy development and governance process items) 13. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS (a) City of Hutchinson Financial Report and Investment Report for October 2021 MISCELLANEOUS 14. STAFF UPDATES John Olson — Mr. Olson reminded everyone that the leaf vacuuming service ended this past Monday, November 22, 2021. Tom Gifferson — Chief Gifferson updated the Council on the police dispatch consolidation with McLeod County. Chief Gifferson reminded the public and the Council that the police department can be reached at its administrative line of 234-4290 instead of going through the McLeod County Sheriff's calling tree. 0 CITY COUNCIL MINUTES — November 23, 2021 Chief Gifferson also noted that Doug Hanneman of the National Coalition of Safe Roads (part of the Towards Zero Deaths program) asked him to read a report on traffic accidents in the county and tips to use to drive safely. Matt Jaunich — Mr. Jaunich reminded everyone that city offices are closed on Thanksgiving Day and the day after. He also reminded everyone of the Truth in Taxation hearing on December 7, 2021, at 6:00 p.m. 15. COUNCIL/MAYOR UPDATE Gary Forcier — Mayor Forcier asked if there would be any objection to appointing a non-resident to the Library Board. Matt Jaunich noted the ordinance establishing the Library Board will need to be changed to allow this, but that will not be an issue. 16. CLOSED SESSION PURSUANT TO MINNESOTA STATUTE §13D.05, Subd. 3(c) TO DISCUSS PURCHASE OF REAL PROPERTY LOCATED AT 145 2ND AVENUE SE AND 205 JEFFERSON STREET SE Motion by May, second by Christensen, to convene into closed session at 6:55 p.m. Motion carried unanimously. Motion by May, second by Christensen, to reconvene into open session at 7:10 p.m. Motion carried unanimously. ADJOURNMENT Motion by May, second by May, to adjourn at 7:11 p.m. Motion carried unanimously. MINUTES CITY COUNCIL TRUTH IN TAXATION HEARING DECEMBER 7, 2021 1. CALL TO ORDER — 6:00 P.M. Members Present: Mayor Gary Forcier, Pat May, Chad Czmowski and Dave Sebesta; Member Absent: Mary Christensen Others present: Matt Jaunich, City Administrator, Andy Reid, Finance Director and Justin Juergensen, Assistant Finance Director 2. TRUTH IN TAXATION HEARING Mayor Forcier opened the hearing at 6:00 p.m. Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich explained the budget process the City has used to date. Five work sessions have been held over the past seven months. The Council adopted the preliminary budget and tax levy in September and recently truth in taxation notices were mailed to all City property owners. Mr. Jaunich explained the purpose for tonight's hearing is to enhance public participation in the property tax system by allowing a public forum to discuss the budget, discuss the proposed tax levy, explain the increases and hear public comments and questions on the budget and tax levy. If the hearing needs to be continued it will be continued at the next Council meeting on December 14, 2021, and the final budget and tax levy is expected to be adopted by the Council on December 28, 2021. Mr. Jaunich noted that at tonight's hearing the Council discusses the City's share of citizens' total 2022 proposed tax bill, not property valuations. Mr. Jaunich explained that property valuation open book meetings are held in May/June by McLeod County. Mr. Jaunich briefly explained valuations and noted that the market value of a property is determined by January 2 of the year prior to the year in which taxes on that property are due. Therefore, market values for taxes payable in 2022 were set in January 2021. Property values on statements recently received are based off of home sales from October of 2019 to September of 2020. Property owners will receive new notices of market values from the assessor in March/April of 2022. Questions on valuations should be addressed in May/June with the County Assessor/County Board. Mr. Jaunich explained that the preliminary tax levy set in September showed a tax increase of 7.0% and included a balanced budget. The revised budget has reduced the tax levy increase to 4.2% while maintaining a balanced budget. The City has adjusted its revenue projections and eliminated roughly $212,000 in expenses since its preliminary budget was adopted in September. Hutchinson's 2021 average City tax rate ranked the second lowest in McLeod County, however ranked the fifth highest amongst other outstate regional centers. The state-wide city average tax rate is 74.19% and Hutchinson is at 63.88%. Hutchinson is the second lowest of all outstate regional centers for the poverty level, 4t1i highest of all outstate regional centers for median household income, 7'1i highest of all outstate regional centers for median home value and is the third lowest of all outstate regional centers in LGA payments. The 2022 state-wide proposed property tax increase of cities is 6.6%. Mr. Jaunich provided data on tax levy comparison to tax base, price of government for the City of Hutchinson and a price of government comparison. Mr. Jaunich noted that there are 14 reasons property taxes vary from year to year. These include: the market value of property may change; the market value of other properties in the taxing district may change, shifting taxes from one property to another; the State general property tax may change; the city budget and levy may change; the Township budget and Ievy may change; the County budget and levy may change; the School District's budget and levy may change; a Special District's budget and levy may change; special assessments may be added to a property tax bill; voters may have approved a school, city/township, county or special district referendum, federal and state mandates have changed; aid and revenue from the state and federal governments may have changed; the state legislature may have charged the portion of the tax base paid by different types of properties; other state law change may adjust the tax base. Mr. Jaunich also reviewed Minnesota's property tax system and how it is based off of five components, those being: local property tax levies (city, school district, county, etc.), property tax classification rates (ranges from 0.25% to 2.0% - set by the state) property value (based off of property sales and is set by the county assessor), tax credits (only certain properties get this) and state general tax (set by the state and assigned to mainly commercial/industrial properties). Hutchinson's property tax rate is set by takm� the city's tax levy and dividing it by its total tax capacity. Tax capacity is determined by multiplying a property's market value by its classification rate. Mr. Jaunich noted that with the proposed 4.2% levy increase that means a $33.00/year increase on a home valued at $200,000. Again, this is the City's portion of the tax statement. Mr. Jaunich then explained how the City's portion of a proposed tax bill is determined. Mr. Jaunich also explained the homestead exclusion and market value history. Mr. Jaunich reviewed the entities that share a Hutchinson tax bill those being the County, the School (operating), the School (debt), the City, the EDA, the HRA and Region 6E. Mr. Jaunich then reviewed the City's mission statement and six core areas of focus, which include public safety, health & recreation; transportation; economic development; environment and good government. Mr. Jaunich reviewed the proposed tax levies for 2022 which includes a 4.2% increase for the City's portion and a 9.0% increase for the EDA levy and a 4.0% increase for the HRA levy, for a total tax impact increase of 4.3%. Mr. Jaunich reviewed the 2022 debt levy and the tax levy comparison since 2012. The proposed 2022 tax levy includes the seventh straight year of an increase in the general fund portion of the levy since 2012. The proposed 2022 tax levy includes the first year of an increase to the debt fund portion of the levy since 2016. Compared to 2012, the City's total tax levy has increased by 24.2%. The average annual tax levy increase since 2012 has been 2.2%. The 2022 city tax levy accounts for a per capita tax of $545, which is up from $534 in 2021. Mr. Jaunich provided additional information on the City's tax rate such as: 1.) The City's growth in tax capacity (10.5%) continues to outpace the tax levy (4.2%), resulting in a decreasing city tax rate (the 2022 city tax rate is expected to be 3.61 % lower than the 2021 tax rate and Hutchinson's tax rate has decreased each year since 2014) and 2.) The median home value would see a $33 city tax bill increase, based on an estimated 9.2% increase from $186,000 to $200,000 (a property possibly might not see a city tax increase if its value does not increase at the same rate as the median home value and a property valued at $186,000 in 2021 with the same value in 2022 would see a $69 decrease in its city tax bill). Mr. Jaunich also provided data on the 10-year tax rate trend. Mr. Jaunich reviewed the general fund revenues and expenses. Mr. Jaunich explained that the general fund revenues include property taxes, other taxes, licenses & permits, intergovernmental revenue, charges for service, fines & forfeitures, miscellaneous revenue, transfers -in and fund balance. He noted additional facts on general fund revenues which include: general fund revenues include a 3.2% tax levy increase �$30,000 of the levy is allocated to the Uponor tax abatement); property taxes account or approximately 40% of the General Fund Revenues; the PILOT payment from HUC is remaining steady; the City is in Year 4 of 5 of phasing out HSA funding from Self -Insurance; there is a $10,000 increase from Creekside to the general fund; the City is projecting a 16.6% increase in licenses and permits due to building activity; the LGA increase is being offset with the loss of E911 money; Park and Rec fee increases and regular programming expected to bring in an additional $54,000 in revenue; staff is expecting most of the other revenue sources to remain relatively flat; and al% tax levy increase to the general fund is equivalent to $54,427. Total general fund expenses are comprised of wages & benefits, supplies, services & charges, miscellaneous expenses, transfers -out and capital outlay. Public safety accounts for 33.2% of general fund, 26.3% is general government, 23.6% is culture and recreation, 14.8% is streets and highway and 2.1% is miscellaneous. Mr. Jaunich noted the following: wages & benefits increased 2.1% for 2022 which includes performance and other annual adjustments, ; includes the removal of the dispatch center, includes adding one additional full time employee at the DMV and includes higher wages for seasonal/part time staff, wages and benefits account for 68% of general fund expenses; expenses include increased funding for fleet replacement; supply costs are omg up due t o ohigher fuel costs and the need for equipment parts; departments have eld budgets flat other than wages & benefits; and the 2022 budgeted expenses are balanced with revenues. Mr. Jaunich then reviewed the enterprise funds — consisting of the liquor, compost, refuse, water, wastewater and stormwater funds. Mr. Jaunich noted that the Liquor Hutch and Creekside continue to do well and will contribute $670,000 to the general fund in 2022. There will be no increases in garbage, water and sewer rates. All enterprise funds continue to have healthy fund balances. There will be a slight rate increase to stormwater rates of 3%. Transfers to the general fund from the enterprise funds will be at $820,000 in 2022. Total enterprise money is $2,687,191 when HUC money is included. Mr. Jaunich noted that capital needs are due to the age of all of the facilities starting to increase. Mr. Jaunich reviewed the 2022 capital improvement plan and debt management plan. The capital improvement plan is made up of infrastructure, enterprise funds, public safety, public works, Park & Recreation, and general government and is approximately $51 million. The approximate breakdown of distribution of the funds is as follows: $21.06 million to infrastructure; $6.76 million to public safety; $13.25 million to Enterprise Funds; $5.42 million to Public Works; $4.89 million to Park & Rec and $990,531 to General Government. Funds for the CIP come from new debt, enterprise funds, taxes, special assessments, aids/grant and special funds/reserves. Major capital items included in the capital plan are: street improvement projects, LED light retrofits, seal coating, Creekside facility/equipment, water/wastewater/stormwater improvements and equipment, new police station, police vehicles, Park & Recreation vehicles, East Rink roof repair/upgrade, playground upgrades/splash pad, HATS facility, cemetery, street vehicles, general facility upgrades and election equipment. The debt management plan has a target debt levy at $2.6 million. 2022 will be the first year of an increase in the City's debt levy since 2016. Low interest rates in recent years have allowed for higher project limits which is the main reason for the higher tax levy increase proposed for next year. The City is planning on using $1 million in reserves to soften the levy impact for 2022. Mr. Jaunich then reviewed the new police facility project which has a total current project cost of $13.96 million. Funding sources for the project include hospital proceeds, city reserves, proceeds from the eventual sale of the current police facility/EOC and bonding borrowing. Final costs bonding won't be known until next year. The new facility will include a neDMV office and Emergency Operations Center. The new facility will house all vehicles inside garage space and the new facility will not have a dispatch center. Mr. Jaunich reviewed that staff is recommending a 2.0% increase in general fund revenue/expenses which means a 3.2% increase in the general tax levy and a 6.7% increase in the debt tax levy with an overall tax levy increase of 4.2%. With the EDA tax levy proposed to increase 9.0% and the HRA tax levy proposed to increase 4.0% the total tax impact is 4.3%. One of the biggest factors behind the levy increase is the general wage and benefit increases along with staff changes and additional seasonal/temporary pay increases are expected to cost the City an additional $197,872 in 2022. The other biggest factor is the debt for the new police facility which will increase the City's debt levy by $148,252. Mr. Jaunich noted again that staffing costs and capital needs are the biggest "driver" of the City's budget. Fund balances continue to remain high and the fiscal condition of the City is healthy. The State's budget forecasts has a surplus and there are no anticipated shortfalls for the 2022-23 budget. Home values continue to increase and the City is continuing to see growth at all levels (residential including multi -family, commercial and industrial). Inflation and supply chain issues are impacting the City as well. General discussion was held regarding public participation/input related to the City's budget and tax levy. Carol Johnson, 550 Lakewood Drive SW, spoke before the Council. Ms. Johnson provided positive comments to Council and staff on work they have done with the budget and tax levy. Ms. Johnson expressed her appreciation on the lowering of the tax levy from the preliminary proposal in September. ADJOURN Motion by Czmwoski, second by May, to adjourn at 7:08 p.m. Motion carried unanimously. ATTEST: Gary T. Forcier Mayor Matthew Jaunich City Administrator cR HUTCHINSON CITY COUNCIL HU TCHINSON Request for Board Action A CITY ON PURPOSE. Off -Site Gambling Application - Hutchinson Hockey Association, Inc. Agenda Item: Department: Administration LICENSE SECTION Meeting Date: 12/14/2021 Application Complete N/A Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff M Consent Agenda Time Requested (Minutes): 1 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: The Hutchinson Hockey Association, Inc., has submitted an application to conduct off -site gambling (a raffle) at the Crow River Golf Club, located at 915 Colorado Street NW, on February 5, 2021. State law requires that cities grant approval of the off -site gambling when it is being requested by a state -licensed organization prior to the application being submitted to the Minnesota Gambling Control Board. The applicant will submit the final application to the State Gambling Control Board for their authorization. BOARD ACTION REQUESTED: Approve off -site gambling application for Hutchinson Hockey Association on February 5, 2021, at Crow River Golf Club located at 915 Colorado Street NW Fiscal Impact: $ 0.00 Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: N/A Remaining Cost: $ 0.00 Funding Source: N/A d q MINNESOTA LAWFUL GAMBLING 6/15 Page 1 of 2 LG230 Application to Conduct Off -Site Gambling No Fee OR ANIZATION INFORMATION Orgarlization Name: HUTCHINSON HOCKEY ASSOCIATION, INC. License Number: 02482 Address: PO BOX 594 City: HUTCHINSON MN Zip: 55350 Chie0Executive Officer (CEO) Name: JOSH KARG Daytime Phone: 320-552-3513 Gamiling Manager Name: TERENCE DITLEFSEN Daytime Phone: 320-583-7954 GAMBLING ACTIVITY Twelve off -site events are allowed each calendar year not to exceed a total of 36 days. From 02 / 05 / 22 to 02 / 05 / 22 Che the type of games that will be conducted: ❑✓ Rafe Pull -Tabs Bingo ❑Tipboards Paddlewheel GAMBLING b GiAMBLING PREMISES Name of location where gambling activity will be conducted: CROW RIVER GOLF CLUB Street address and City (or township): 915 COLORADO STREET NW HUTCHINSON, MN Zip: 55350 County: MCLEOD Do not use a post office box. If no street address, write in road designations (example: 3 miles east of Hwy. 63 on County Road 42). F; , Does•your organization own the gambling premises? Yes If yes, a lease is not required. INo If no, the lease agreement below must be completed, and signed by the lessor. LEASE AGREEMENT FOR OFF -SITE ACTIVITY (a lease agreement is not required for raffles) Rent To be paid for the leased area: $0 (if none, write "0") All ogigations and agreements between the organization and the lessor are listed below or attached. • Any attachments must be dated and signed by both the lessor and lessee. This lease and any attachments is the total and only agreement between the lessor and the organization conducting lawful gambling activities. Other terms, if any: R, �I Lesso 's Signa re: _ Date: Print Lessor's Name: k� CONTINUE TO PAGE 2 V LG230 Application to Conduct Off -Site Gambling Ack1nowledgment by Local Unit of Government: Approval by Resolution CITY APPROVAL for a gambling premises located within city limits City Name: DateApproved by City Council: Resolution Number: (If none, attach meeting minutes.) t Signa ture of City Personnel: i Title Date Signed: i, Local unit of government must sign. COUNTY APPROVAL for a gambling premises located in a township County Name: Date Approved by County Board: Resolution Number: (If none, attach meeting minutes.) Signature of County Personnel: Title: Date Signed: TOWNSHIP NAME: 6/15 Page 2 of 2 Complete below only if required by the county. On behalf of the township, I acknowledge that the organization is applying to conduct gambling activity within the township limits. (A township -has no statutory authority to approve or deny an application, per Minnesota Statutes 349.213, Subd. 2.) Print Township Name: Signature of Township Officer: Title: EXECUTIVE OFFICER (CEO) ACKNOWLEDGMENT Date Signed: The.person signing this application must be your organization's CEO and have their name on file with the Gambling Control Board. If the CEO has changed and the current CEO has not filed a LG200B Organization Officers Affidavit with the Gambling Control Board, he or she must do so at this time. I have read this application, and all information is true, accurate, and complete and, if applicable, agree to the lease terms as stated in this application. I I - ;L.9-oZ.00Z 1 si o CIO tmupf be CEO's signature; designee may not sign) Date Mail or fax to: No attachments required. Minnesota Gambling Control Board Suite 300 South Questions? Contact a Licensing Specialist at 651-539-1900. 1711 West County Road B Roseville, MN 55113 a Fax: 651-639-4032 This publication will be made available in alternative format (i.e. large print, braille) upon request. + Data privacy notice: The information requested on this form (and any attachments) will be used by the Gambling Control Board (Board) to deterfiiine your organization's qualifications to be involved in lawful gam b tg activities in Minnesota. Your organization has the right to refuse to sup6ly the information; however, if your organization refuses to supply this information, the Board may not be able to determine your organisation's qualifications and, as a consequence, may refuse to issue a permit. If your organization supplies the information requested, the Board will be able to process your organization's application. Your organization's name and address will be public information when received by the Board. All other information provided will be private data about+your organization until the Board issues the permit. When the Board issues the permit, all information provided will become public. J If the Board does not issue a permit, all information provided remains private, with the exception of your organization's name and address which will remain public. Private data about your organization are available to: Board members, Board staff whose work requires access to the information; Minnesota's Department of Public Safety; Attorney General; commissioners of Administration, Minnesota Management & Budget, and Revenue; Legislative Auditor; national and international gambling regulatory agencies; anyone pursuant to court order; other individuals and agencies specifically authorized by state or federal law to have access to the information; individuals and agencies for which law or legal order authorizes a new use or sharing of information after this notice was given; and anyone with your written consent. An equal opportuity employer HUTCHINSON CITY COUNCIL "=yofX Request for Board Action 7A"Z�7 Agenda Item: Short -Term Gambling License - McLeod County Pheasants Forever Department: Administration LICENSE SECTION Meeting Date: 12/14/2021 Application Complete Yes Contact: Matthew Jaunich Agenda Item Type: Presenter: Matthew Jaunich Reviewed by Staff ❑✓ Consent Agenda Time Requested (Minutes): License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: The McLeod County Pheasants Forever organization has submitted a short-term gambling license application into administration for review and processing. The application is for an event the organization is holding on March 12, 2021, at the McLeod County Fairgrounds. The applicant has completed the appropriate application in full and all pertinent information has been received. BOARD ACTION REQUESTED: Approve issuing a short-term gambling license to McLeod County Pheasants Forever on March 12, 2021. Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: HUTCHINSON A CITY ON PURPOSE. 111 Hassan Street Southeast Hutchinson, MN 55350 (320) 587-5151 Fax: (320) 234-4240 City of Hutchinson APPLICATION FOR GAMBLING DEVICES LICENSE In provisions of the City of Hutchinson Ordinance Chapter 114 and Minnesota Statutes Chapter 349 All applications are to be received at least 30 days before event in order to be considered f V Short Term Date(s) Fee: $30.00 COW 5 Organization Information Dc1 111&1124,11 V t [ G1c�'6la—b&g3b Name Phone Number Address where regular meeting are held City State zip Federal or State ID: Day and time of meetings? J• Dom -AO J — ftoA Is this organization organized under the laws of the State of Minnesota? .yes ❑ no How long has the organization been in existence? ,I(c nHow may members in the organization? What is the purpose of the organization? ngd PA%C eraarm t�f Alj l- 66' In whose cu$tody will organization records be kept? 1-0 N me Phone Number a L QC cA'a /_W_� ss3g7 Address Citr State zip Duly Authorized Officer of the Organization Information True Name Phone Number e/siidence Address City State Zip Date of Birth: // / f d / Ay02 Place of Birth: //u /� 4, - t'rc,' Month/day/year City State Have you ever been convicted of any crime other than a traffic offense? ❑ yes Cno If yes, explain: City of Hutchinson Application for Gambling Devices License Page 2 of 3 True Name Phone Number S SI �)r j s53y.s Residence Address City State Zip Date of Birth: U ( / 0 ( / Iq O Place of Birth: /�/' V Month day/year City State Have you ever been convicted of any crime other than a traffic offense? ❑ yes 1�no If yes, explain: How long have you been a member of the organization? Game Information Location 111 Ar Name of location wAre game will be played Phone Number Sl Address of locatioV where game will be played City State Zip Date(s) and/or day(s) gambling devices will be used: Hours of the day gambling devices will be used: 7� Lb2,. through :5//a/A.L AM From q: JU AM To `� ; uV AM Maximum number of player: ,psi? Will prizes be paid in money or merchandise? J,money 161merchandise Will refreshments be served during the time the gambling devices will be used? If yes, will a charge be made for such refreshments? ❑ yes ❑ no Game Informal Location #2 lbo yes ❑ no Name of location where game will be played Phone Number Address of location where game will be played City State Zip Date(s) and/or day(s) gambling devices will be used: through AM Hours of the day gambling devices will be used: From pM. To Maximum number of player: Will prizes be paid in money or merchandise? ❑ money ❑ merchandise Will refreshments be served during the time the gambling devices will be used? ❑ yes ❑ no If yes, will a charge be made for such refreshments? ❑ yes ❑ no UUM City of Hutchinson Application for Gambling Devices License Page 3 of 3 Officers of the Or!� Fanization (ifnecessaty, list additional names on separate sheeo L Name Title i2S r*sfi n 5�, 5k ,,ate _ 44V Sn5o Residence Address 1� j city y State , j zip lqrrmao Name �Title � Residence Address City State zip Name Title �R U (1tv-4 . �'- 9"om Son *V S5'�,t'2j Residence Address Citri• State zip Officers or Other Persons Paid for Services Information i necessa , list additional names on separate sheet Name Title Residence Address City State zip Name Title Residence Address City State zip Name Title Residence Address Cin. State zip Have you (Gambling Manager and Authorized Officer) read, and do you thoroughly understand the provisions of all laws, ordinances, and regulations governing the operation and use of gambling devices (as outlined in City of Hutchinson Ordinance 114.20 and Minnesota Statutes Chapter 349)? Gambling Manager *Yes ❑ no Authorized Officer I� yes El no_ Initial Initial I declare that the information I have provided on this application is truthful, and I authorize the City of Hutchinson to investigate the information submitted. Also, I have received from the City of Hutchinson a copy of the City Ordinance No. 114.20 relating to gambling and I will familiarize myself with the contents thereof. of authorized officer of organization ofgambling manager of organization Internal Use Only City Council ❑ approved ❑ denied Notes: Z� �7 Date 'a('7101WJ Date To: Mayor and City Council From: Stephanie Nelson, Legal Technician Date: December 14, 2021 Subject: License Renewals for 2022 The following establishments have applied for 2022 license renewals. The appropriate paperwork has been submitted. Please approve the following licenses: On -Sale Intoxicating Applebee's Buffalo Wild Wings Cobblestone Hotel & Suites Crow River Golf Club El Loro's Flack Steakhouse Hutchinson Elks Lodge Hutch Bowl & Squeaky' s Grill & Bar Main Street Sports Bar Muddy Cow Sonora's V.F.W. Post 906 Massage Services Genesis Salon & Enso Spa, LLC Hutchinson Therapeutic Massage Center Main Massage LLC Liz Lodermeier Maria's Hair Salon Much Kneaded Massage LLC Vita Nova, LLC On -Sale 3.2 Malt Liquor Hutchinson Huskies Baseball Tara Tepley - The Paint Factory Taxi Cab Kato Independent Shuttle Service Erickson Acres Carriage Company LLC Eric Labraaten (ACC Midwest Trans) Quality Transportation Tap Room On -Sale Bobbing Bobber Brewing Company, LLC Taproom Sunday Bobbing Bobber Brewing Company, LLC Sunday Liquor License Applebee's Buffalo Wild Wings Cobblestone Hotel & Suites Crow River Golf Club El Loro's Flank Steakhouse Hutchinson Elks Lodge Hutch Bowl & Squeaky' s Grill & Bar Main Street Sports Bar Muddy Cow Sonora's V.F.W. Post 906 Off -Sale 3.2 Malt Liquor Cobom's Inc — Cash Wise Foods Cobom's Inc — Holiday Station Kwik Trip Northern Tier Retail LLC (SA -West) Shiva LLC (SA -East) Wal-Mart Stores Inc Tobacco BP 97803 Casey's Coborn's Inc - Cash Wise Foods Coborn's Inc - Holiday Station Crow River Golf Club Dollar General Store Hutchinson Co -Op —Adams Hutchinson Co -Op - Hwy 7 Hutchinson Outpost, Inc Hutchinson Tobacco & Accessories Plus Kwik Trip Main Street Sports Bar Northern Tier Retail LLC (SA -West) Smokes 4 Less Shiva LLC (SA -East) Walgreens Wal-Mart Stores Inc Wine/Strong Beer License Tokyo Grill AA, Inc Caterer The Blue Note Transient Merchant The Enchanted Trunk Food Cart Rafael Jimenez (Ice Cream Truck) Pawn Licenses Security Coin & Pawn Shop Inc Garbage/Haulima Licenses Renville -Sibley Sanitation, LLC Waste Management West Central Sanitation, Inc Brewer Off -Sale Bobbing Bobber Brewing Company, LLC Brewer Off -Sale Sunday Bobbing Bobber Brewing Company, LLC HUTCHINSON CITY COUNCIL Request for Board Action Approve 2022 Invocation Schedule Agenda Item: Department: Administration LICENSE SECTION Meeting Date: 12/14/2021 Application Complete N/A Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff ❑� Consent Agenda Time Requested (Minutes): 1 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: In June of 2018, the City Council approved a new invocation policy that gave staff guidelines on establishing a schedule on who gives the invocation at council meetings for the upcoming year. In mid -September, an invitation was sent out to all of the churches/religious institutions within city limits and on file seeking volunteers to deliver the invocation for the upcoming year. The schedule includes those that responded. Please note that our policy notes that no one should give the invocation more than twice within a year. Attached is the proposed schedule for 2022 for your consideration. Our invocation policy notes that the City Council will approve the schedule for the upcoming year. Please note that our policy states that any spots left vacant may be filled by the City Council by a council member invite, left vacant to be filled at a later time, or simply left open and unfilled (meaning no invocation will be given). Any last minute -changes to the schedule will be noted at the meeting on Tuesday. Any requests that come in after the schedule is approved will be brought forth to the Council for consideration in adding to the calendar or will be added administratively BOARD ACTION REQUESTED: Approve the 2022 Invocation Schedule Fiscal Impact: Funding Source: FTE Impact: Budget Change: No 0 Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: N/A Remaining Cost: $ 0.00 Funding Source: N/A Invocation Schedule 2022 City Council Meeting Date Church/Organization January 11, 2022 Hunters Ridge Community Church January 25, 2022 Hunters Ridge Community Church February 8, 2022 The River at MSP Church February 22, 2022 CrossPoint March 8, 2022 The River at MSP Church March 22, 2022 River of Hope April 12, 2022 Hope Family Church April 26, 2022 Oak Heights Covenant May 10, 2022 Harvest Mission May 24, 2022 Faith Lutheran June 14, 2022 Harvest Mission June 28, 2022 July 12, 2022 Hutchinson Evangelical Free Church July 26, 2022 Hutchinson Evangelical Free Church August 9, 2022 Faith Lutheran August 23, 2022 September 13, 2022 September 27, 2022 River of Hope October 11, 2022 CrossPoint October 25, 2022 Hope Family Church November 8, 2022 Christ the King Lutheran November 22, 2022 Christ the King Lutheran December 13, 2022 Oak Heights Covenant December 27, 2022 November 18th, 2021 Dear City Council Members, I am writing to request the use of 3-4 public parking spaces for a food truck at the Hutchinson Center for the Arts during my daughter's graduation party on Sunday, May 22nd, 2022 from 1-6 pm. The food truck would be for private use only. Thank you for your consideration and please contact me if you have any further questions. Sincerely, Robin Dettman 320-583-3750 24647 180th Street Hutchinson FR Fs HUTCHINSON CITY COUNCIL H UTC H I N SO N Request for Board Action A CITY ON PURPOSE. Approval of Project Change/Work Orders and Supplemental Agreements Agenda Item: Department: PW/Eng LICENSE SECTION Meeting Date: 12/14/2021 Application Complete N/A Contact: Kent Exner Agenda Item Type: Presenter: Kent Exner Reviewed by Staff ❑� Consent Agenda Time Requested (Minutes): 0 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: As construction has proceeded on the below listed projects there has been additional work, project scope revisions, and/or construction completion date changes. The items specified below have been identified and deemed necessary to satisfactorily complete the projects per the intent of the original construction contract. The following Change Orders, Supplemental Agreements and/or Work Orders are proposed as noted- - Change Order No. 4 — Letting No. 3Project No. 21-03 — WWTF Headworks Improvements This Change Order addresses the Building 30 structure being compromised by 24" force main installation. This Change Order results in a increase to the Contract in the amount of $2,822.31 This action does not change the Final Completion Date. - Change Order No. 5— Letting No. 3Project No. 21-03 — WWTF Headworks Improvements This Change Order addresses the Building 30 removal and replacement of roof panels deemed unnecessary for installation of screens however, roof membrane replacement is needed due to age. This Change Order results in a increase to the Contract in the amount of $29,457.40 This action does not change the Final Completion Date. - Change Order No. 6 — Letting No. 3Project No. 21-03 — WWTF Headworks Improvements This Change Order addresses the Building 30 existing door deemed to be in poor condition. This Change Order results in a increase to the Contract in the amount of $4,491.67 This action does not change the Final Completion Date. - Change Order No. 7 — Letting No. 3Project No. 21-03 — WWTF Headworks Improvements This Change Order addresses the issue of insufficient anchorage between sleeve and bolt pattern to attach flange to wall. This Change Order results in a increase to the Contract in the amount of $1,960.12 This action does not change the Final Completion Date. BOARD ACTION REQUESTED: Approval of Change Orders Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: $ 0.00 Total City Cost: $ 0.00 Funding Source: Remaining Cost: $ 0.00 Funding Source: CITY OF HUTCHINSON, MN OF ME CHANGE ORDER Engineering Dept, 111, Hassan St SE, Hutchinson MN 55350 A CITY ON PURPOSE. 320-234-4209 11/30/2021 SP/SAP(s) NA MN Project No.: NA Change Order No. 4 Project Description: WWTF Headworks Improvements City ject L3P21-03 rPr Project Location Wastewater Treatment Facility (W WTF) Headworks Improvements Project: Procurement and construction of forcemains, pumps, drum screens, grit removal system, splitter box, process mechanical upgrades, structural improvements, electrical implementations and appurtenances. Local Agency City of Hutchinson Local Project No. L3P21-03 Contractor Rice Lake Construction Group Contract No. L3P21-03 Address/City/State/Zip 1PO Box 517, Deerwood, MN 56444 Total Change Order Amount $ $2,822.31 Issue: Building 30 structure compromised by 24" force main installation. Resolution: Supports added to compromised structure. Estimate Of Cost: (Include any increases or decreases in contract items, any negotiated or force account items.) *-Group/fundi Item No. Description Lump Sum Price +or — +or— ng Category Quantity Amount $ Change Order 4 Work Change Directive 8 - Additional wall supports 1 $2,822.31 1 $2,822.31 Net Change this Change Order $2,822.31 —Group/funding category is required for federal aid projects Approved by Project Engineer: Jennifer Svennes Approved by Contractor: Rice Lake Construction Group Signed: Signed: Date: 11/30/2021 Phone: 605-690-9073 Printed Name: Jaime Barry Date: Phone: 218-546-5519 Approved by City Engineer: Kent Exner Signed: Date: Phone: 320-234-4212 City Council Approval: 12/14/2021 WORK CHANGE DIRECTIVE NO.: 8 Owner: City of Hutchinson Owner's Project No.: 1_31321-03 Engineer: Nero Engineering Engineer's Project No.: 10035 Contractor: Rice Lake Construction Group Contractor's Project No.: 2127 Project: WWTF Headworks Improvements Contract Name: Letting No. 3/Project No. 21-03 Date Issued: 10/19/2021 Effective Date of Work Change Directive: 10/14/2021 Contractor is directed to proceed promptly with the following change(s): Description: The new 24" force main is routed between the B30 stairwell area through the wall into the screening room. Rice Lake discovered a lintel in the location of the core drill that used to support the masonry above an original door that has been infilled. The wall supports the precast plank ceiling. Additional supports are needed so the structure isn't compromised. Attachments: Work Change Directive Proposal No. 8 from Rice Lake. RFI #036. Purpose for the Work Change Directive: To proceed with the necessary structural work. Directive to proceed promptly with the Work described herein, prior to agreeing to change in Contract Price and Contract Time, is issued due to: ❑ Non -agreement on pricing of proposed change. © Necessity to proceed for schedule or other reasons. Estimated Change in Contract Price and Contract Times (non -binding, preliminary): Contract Price: $2,822.31 Contract Time: 0 days Basis of estimated change in Contract Price: © Lump Sum ❑ Unit Price ❑ Cost of the Work ❑ Other Recommended by Engineer By: Jennifer Svennes Title: Project Manager Date: 10/19/2021 [increase] rd....... asel [i;o%.,e% es%ima+..4 Authorized by Owner Tim Gratke Wastewater Supervisor 10/19/2021 EJCDC® C-940, Work Change Directive. Copyright' 2018 National Society of Professional Engineers, American Council of Engineering Companies, and American Society of Civil Engineers. All rights reserved. Page 1 of 1 RICE LAKE Priority (1-5) 0 Priorities: 1 = 8 hours 4 = 5 days 2 = 2 days 5 = 2 weeks 3 = 3 days TO: Nero Engineering- Frank Romano Received: Answered: RFI# 036 REQUEST FOR INFORMATION Subject: Lintel Location Location: Owner: City of Hutchinson Routing: Project: Hutchinson, MN WWTP Headi- --oi-ks Other: Note 6 Drawing No: 30-M-2 11 Spec. REQUEST Plan page 30-M-2 note 6 has a 24" pipe being cored through the existing masonry wall. This wall is a bearing wall for the pre -cast plank ceiling. RLCG discovered a lintel in the location of the core drill that use to support the masonry above an opening that was infilled. Core through the lintel would ruin the core bit - cutting a square hole may compromise the bearing wall supporting the plank. Please advise how to proceed. Picture attached. Thank you! Name: Jaime Barry Company: Rice Lake Construction Date: September 24, 2021 RESPONSE ROVIDE (2) W4x13 LINTEL BEAMS - SEE ATTACHED DETAIL Name: R. Stroh Date: 10/7/202 , cc: Superintendent, RLCG 22360 County Road 12 PO Box 517 Deerwood, MN 56444 PH 218-546-5519 FX 218-546-7016 9/24/21, 12:01 PM Mail - Ashley Horner - Outlook Lintel Location - above existing door https://outlook.office.com/mail/inboxlid/AAQkAGJmNDMyOGM2LTAlNTctNGU3Zi04MjE4LTMyOGRIYzBmNjVkNgAQAOpr7BAluL5PhTKD9GpOkQ8`/ . 1/1 A Advanced Engineering and Environmental Services, Inc. Project Project Nu Subject -` t O;E-- T,NZ Date Ib T zi Prepared By :�� Checked By V > _ Page I of 611 ZW1n(--, P 65) -fA L rA� www.ae2s.com CITY OF HUTCHINSON, MN OF M-1 CHANGE ORDER Engineering Dept, 111, Hassan St SE, Hutchinson MN 55350 A CITY ON PURPOSE. 320-234-4209 11/30/2021 SP/SAP(s) NA MN Project No.: NA Change Order No. 5 Project Description: WWTF Headworks Improvements City ject L3P21-03 rPr :t Location Wastewater Treatment Facility (W WTF) Headworks Improvements Project: Procurement and construction of forcemains, pumps, drum screens, grit removal system, splitter box, process mechanical upgrades, structural improvements, electtical implementations and appurtenances. Agency (City of Hutchinson (Local Project No. IL3P21-03 actor lRice Lake Construction Group lContract No. 1-3P21-03 PO Box 517, Deerwood, MN 56444 Total Change Order Amount $ $29,467.40 Issue: Removal and replacement of roof panels deemed unnecessary for installation of screens in Building 30. Roof membrane replacement is needed due to age. Resolution: Roof panel removal and replacement deducted from scope. Building 30 full roof membrane replacement added to scope. Estimate Of Cost: (Include any increases or decreases in contract items, any negotiated or force account items.) ""Group/fundi Item No. Description Lump Sum Price +or — +or— ng Category Quantity Amount $ Change Work Change Directive 10 - Remove and replace 1 $33,294.40 1 $33,294.40 Order 5 existing roof membrane and flashing Change Work Change Directive 10 - Deduct remove and 1 ($3,837.00) 1 ($3,837.0 �} Order 5 replace roof panels Net Change this Change Order $29,467.40 —Group/funding category is required for federal aid projects \pproved by Project Engineer: Jennifer Svennes Approved by Contractor: Rice Lake Construction Group iigned: Signed: )ate: 11/30/2021 Phone: 605-690-9073 Printed Name: Jaime Barry Date: Phone: 218-546-5519 (Approved by City Engineer: Kent Exner Signed: Date: Phone: 320-234-4212 City Council Approval: 12/14/2021 WORK CHANGE DIRECTIVE NO.: 10 Owner: City of Hutchinson Owner's Project No.: 1_31321-03 Engineer: Nero Engineering Engineer's Project No.: 10035 Contractor: Rice Lake Construction Group Contractor's Project No.: 2127 Project: WWTF Headworks Improvements Contract Name: Letting No. 3/Project No. 21-03 Date Issued: 11/22/2021 Effective Date of Work Change Directive: 11/22/2021 Contractor is directed to proceed promptly with the following change(s): Description: This Work Change Directive is to remove and replace the existing roof membrane and flashing on Building 30. The original contract documents showed patching of the roof system, the addition of a walkway, and the removal and replacement of two precast roof panels for the installation of the screens in the building. The cost for the roof replacement in addition to the base bid scope was $33,294.40. Rice Lake has chosen to move the screens into B30 through the existing doors so the removal and replacement of the roof panels is not necessary. The deduct offered for not having to remove and replace the roof panels is $3,605.00. Thus, the total cost for this WCD is $29,457.40 after adjustment to the contractor mark-up and bond costs. Attachments: Work Change Directive Proposal No.10 from Rice Lake. Proposal Deduct from Kato Roofing. Purpose for the Work Change Directive: To proceed with the work. Directive to proceed promptly with the Work described herein, prior to agreeing to change in Contract Price and Contract Time, is issued due to: ❑ Non -agreement on pricing of proposed change. © Necessity to proceed for schedule or other reasons. Estimated Change in Contract Price and Contract Times (non -binding, preliminary): Contract Price: $29,457.40 Contract Time: 0 days Basis of estimated change in Contract Price: © Lump Sum ❑ Unit Price ❑ Cost of the Work ❑ Other Recommended by Engineer By: Jennifer Svennes Title: Project Manager Date: 11/22/2021 [increase] rd....Feasel [not yet estima+.,4 Authorized by Owner Tim Gratke Wastewater Supervisor 11/24/2021 EJCDC® C-940, Work Change Directive. Copyright' 2018 National Society of Professional Engineers, American Council of Engineering Companies, and American Society of Civil Engineers. All rights reserved. Page 1 of 1 4t�EE 00, RICE LAKE CONSTRUCTION GROUP November 8, 2021 Nero Engineering Jennifer Svennes 7135 Madison Ave W Minneapolis, MN Work Change Directive Proposal 2127-10 RE: Hutchinson WWTF Headworks Improvements — WCD 10 Remove and Replace Membrane Roof on the Headworks Building. Dear Nero Engineering (Attn: Jennifer Sveenes): Rice Lake proposes to furnish labor, material, and equipment for the changes to the project documents to remove and replace the existing Headworks Building Roof Membrane and Flashing. This pricing is contingent upon procurement of materials with in 15 days from 11/8 due to commodity pricing volatility. Work would be completed Spring of 2022. All for the sum of $33,294.40 Breakdown attached. Sincerely, RICE LAKE CONSTRUCTION GROUP Jaime Barry Project Manager 22360 County Road 12 PO Box 517 Deerwood, MN 56444 PH 218-546-5519 FX 218-546-7016 Per follow up clarification regarding the precast roof panel removal and replacement being eliminated from the contract, a deduct of $3,605.00 was offered from Kato Roofing. Therefore the Rice Lake Mark-up on Subs and Bond Cost shall also be adjusted as follows: $31,395-3,605 = $27,790 Rice Lake Mark-up on Subs - 5% = $1,389.50 Bond Cost @ 1 % = $277.90 Total Change Order = $29,457.40 Ricer LAi�E. 22360 County Road 12, PO Boa 517 Deerwood, MN 56444 CONSTRUCTION ESTIMATE PROJECT NAME Hutchinson, MN - W WTF Headworks Improvements RLCG PROJECT NO. 2127 Work Change Directive Proposal 10 Date: 11/8/2021 Reference: Remove and Replace Headowork Building Roof Membrane per conversation at project monody meeting. Contingent on proceeding with material procurement within 15 days - due to volitile market pricing on flashing & membrane. Work to be done Spring of 22. Assumes no aspestos. Existing Insulation to remain. LABOR MATERIAL SUB EQUIP. LINE DESCRIPTION QTY UNIT RATE HOURS $RATE TOTAL RATE TOTAL TOTAL TOTAL TOTAL Remove and Replace Membrane (includes flashing - required w/membrane) 1.0 LS 0.00 $82.00 $0.00 $0.00 S31,395.00 $0.00 $31,395.00 0.00 $82.00 $0.00 $0.00 $0.00 $0.00 $0.00 0.00 $82.00 $0.00 $0.00 $0.00 $0.00 $0.00 0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Misc Small Tools and Materials 1.0 is 0.00 $0.00 $0.00 A.00 $0.00 $0.00 $0.00 $0.00 5% of labor 0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Sales Tax 1.0 Is 7.8800% 0.08 $0.00 $0.00 0.00 $0.00 $0.00 $0.00 $0.00 0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 0 1 0.00 $0.00 $0.00 $31,395.00 $0.00 $31,395 Rice Lake Mark-up on Subs-5% Rice Lake Mark-up @ 15% Bond Cost @ 1% Total Change Order Request Per follow up clarification regarding the precast roof panel removal and replacement being eliminated from the contract, a deduct of $3,605.00 was offered from Kato Roofing. Therefore the Rice Lake Mark-up on Subs and Bond Cost shall also be adjusted as follows: $31,395-3,605 = $27,790 Rice Lake Mark-up on Subs - 5% = $1,389.50 Bond Cost @ 1 % = $277.90 Total Change Order = $29,457.40 $1,569.75 $1,569.75 $0.00 $329.65 $33,294.40 KRUM� KATO ROOFING, INC. AMW November 8, 2021 Rice Lake Construction Group Attn: Jaime Barry P: 218-8384318 1 E: Jaime barryna ricelake.or Commercial - Industrial Architectural Sheet Metal Hutchinson WWTF — Existing Roof Membrane Replacement Hutchinson, MN KRI Job 41-21-0025-PR 03 Our estimate for furnishing the labor and materials to provide the below specified work is based on the specifications and plan pages dated March 2021. Furthermore, we acknowledge 3 addendums but NO prevailing wage rates. Proposal Table of Contents: A — BASE BID Scope: EPDM ROOF REPLACEMENT B — BASE BID PRICING C — NOTES & EXCLUSIONS A — EPDM ROOF REPLACEMENT • Move existing rock ballast as necessary for roof replacement and salvage for re -use • Remove and dispose of the existing sheet metal perimeter flashings and EPDM roof membrane in a state approved landfill • Inspect existing insulation for any damage or deterioration and replace on an approved T&Mbasis as required • Supply and install a loose laid 60 mil EPDM roof system per manufacturer specs • Re -distribute the salvaged rock ballast across the new membrane at the minimum rate of 10 lbs/sgft — add new rock as necessary to maintain this spread rate • Supply and install membrane flashings on all walls, angle changes, and termination points per manufacturer specifications • Tie-in this new roof system to any roofing work completed ahead of time that is part of the original contract • Supply and install membrane flashings on all existing roof penetrations per manufacturer specifications • Provide a 20-year manufacturer's roof warranty — standard wind speed coverage of up to 55 mph • Fabricate and install the following sheet metal flashings and trims: • Counter flashing • Gravel Stop flashing • Overflow scuppers • Primary scupper with downspout — low roof • All exposed metal detailed above will be fabricated out of Kynar prefinished 24 gauge steel • Sheet metal colors will be chosen from the manufacturer's available standard colors — Custom and premium colors EXCLUDED B — BASE BID PRICING We shall perform the BASE BID scope (tax included) for the sum of: Thirty One Thousand Three Hundred Ninety Five Dollars--------------------------------------------------------------- $31,395.01� Approval: I am in full agreement and understanding of the terms and conditions as written in the above proposal. Signature Alternates/Options Accepted Print Name/Title/Date Final Price Accepted 321 Lundin Boulevard, Mankato, MN 56001 Metro Phone: (507) 388-4112 Fax: (507) 388-5076 Phone: (952) 736-8134 Fax: (952) 736-8135 KRI KATO ROOFING, INC. AEV Commercial - Industrial Architectural Sheet Metal C — NOTES & EXCLUSIONS 1. Final approval of the proposed scope of work must be by the local inspecting authority 2. Proposal EXCLUDES supplying and installing the guardrail 3. Proposal EXCLUDES demolition and removal of the existing guardrail 4. Proposal is based on roofing work occurring during the warm weather months. Additional costs will be incurred should this project push the roofing installation into the winter months. 5. Proposal EXCLUDES any asbestos testing and abatement if required 6. Proposal EXCLUDES any cutting or patching of the decks, and any wet or damaged insulation replacement. Repair or replacement is necessary for any of these damaged products. The quantity and cost to replace/repair these items, if discovered, will be submitted to you on the day of discovery. 7. Thermal Imaging is EXCLUDED in this proposal 8. Kato Roofing, Inc. cannot be held responsible for existing or future mold conditions caused by previously wet materials or prior leaks 9. During the roofing process, there may be structural movement. Separation of interior sheetrock joints may occur. Kato Roofing, Inc. cannot be held responsible if this occurs. 10. Due to the roofing process, there may be dirt and debris that enters the building. Kato Roofing will take precautions to minimize this, but we cannot be held responsible for any costs associated with the cleanup or damage as a result. Interior protection and cleanup is EXCLUDED 11. Street obstruction or closure permits are EXCLUDED. 12. Unless specified otherwise, all wood blocking, wall insulation, framing, and sheathing is EXCLUDED 13. All demo and temping, unless specified otherwise, is EXCLUDED 14. Proposal is based on roof penetrations, curbs, and plumbing penetrations being roughed in prior to roofing installation. Additional charges may be incurred should penetrations be installed after roofing installation is complete. 15. Spotting of any roof penetrations is EXCLUDED 16. Covering and weather -sealing any holes in the deck is EXCLUDED. Covering of these holes is required by OSHA regulations. 17. Ponding is not a cause for rejection 18. Proposal EXCLUDES the responsibility of supervising other trades working on our roof. We will instruct the GC on industry best practices for roof protection for them to implement and enforce for any trades performing work on the roof system. 19. Repairs to fix leaks in the roofing, found to be caused by the negligence of other trades, are NOT covered by this proposal. These repairs will be completed on a T&M basis. 20. Keeper/cleats are installed only on 1 side unless noted otherwise in this proposal 21. Oil canning is a common occurrence with metal products and is not a cause for rejection 22. All miscellaneous sheet metal flashing and trim in the above base bid scope will be fabricated in our ANSI-SPRI certified shop, not factory supplied —all metal to be fabricated in longest lengths possible 23. Any metal not specifically spelled out in this proposal is EXCLUDED 24. Caulking on the underside of any sheet metal flashing kick/hem is EXCLUDED 25. Proposal is based on current material pricing and is good for 15 days 26. Snow or ice removal is EXCLUDED. Therefore, any snow or ice removal will be performed on a time and material basis, if required, at $80/hr for laborers and $240/hr for crane if required. Haul off site would be extra. 27. Proposal does not include permits or bonds. Therefore, they are EXCLUDED 28. Proposal includes waste containers for roofing debris 29. This job has been quoted with Kato Roofing's Standard Insurance. Any additional requirements may result in a change to the contract Thank you for the opportunity to provide you with our proposal. KATO ROOFING, INC Troy Williams troykkatoroofm .cg om P:507-388-4112 C:507-382-7527 321 Lundin Boulevard, Mankato, MN 56001 Metro Phone: (507) 388-4112 Fax: (507) 388-5076 Phone: (952) 736-8134 Fax: (952) 736-8135 KRIKATO ROOFING, INC. 321 Lundin Blvd., Mankato, MN 56001 Ph: 507-388-4112 To: Jaime Barry Rice Lake Construction Group Proposal Request Number: PR 2 Project: City of Hutchinson WWTP 1-21-0025 Description: Eliminate Patch & Repair Work at Hollow Core Plank Removal Area Scope of Work: - Eliminate the labor and misc. materials for removing and patching the roofing at the Keynote #15 area on the roof plan page 30-S-5 from Addendum #3. The total deduct for this work is..................................................................... $ (3,605.00) Labor: $ (2,560.00) Materials: $ (1,045.00) Submitted By: Troy Williams Approved By: CC: Date: CITY OF HUTCHINSON, MN OF M-1 CHANGE ORDER Engineering Dept, 111, Hassan St SE, Hutchinson MN 55350 A CITY ON PURPOSE. 320-234-4209 11/30/2021 SP/SAP(s) NA MN Project No.: NA Change Order No. 6 Project Description: WWTF Headworks Improvements City rPr ject L3P21-03 :t Location Wastewater Treatment Facility (W WTF) Headworks Improvements Project: Procurement and construction of forcemains, pumps, drum screens, grit removal system, splitter box, process mechanical upgrades, structural improvements, electrical implementations and appurtenances. Agency City of Hutchinson Local Project No. L3P21-03 actor Rice Lake Construction Group Contract No. 11-3P21-03 PO Box 517, Deerwood, MN 56444 Total Change Order Amount $ Issue: Building 30 existing door deemed to be in poor condition. Resolution: Remove and replace the existing single door $4,491.67 Estimate Of Cost: (Include any increases or decreases in contract items, any negotiated or force account items.) "'Group/fundi Item No. Description Lump Sum Price +or — +or— ng Category Quantity Amount $ Change Work Change Directive 11 - Remove and replace 1 $4,491.67 1 $4,491.67 Order 6 existing single door Net Change this Change Order $4,491.67 —Group/funding category is required for federal aid projects \pproved by Project Engineer: Jennifer Svennes Approved by Contractor: Rice Lake Construction Group iigned: Signed: )ate: 11/30/2021 Phone: 605-690-9073 Printed Name: Jaime Barry Date: Phone: 218-546-5519 (Approved by City Engineer: Kent Exner Signed: Date: Phone: 320-234-4212 City Council Approval: 12/14/2021 WORK CHANGE DIRECTIVE NO.: 11 Owner: City of Hutchinson Owner's Project No.: 1_31321-03 Engineer: Nero Engineering Engineer's Project No.: 10035 Contractor: Rice Lake Construction Group Contractor's Project No.: 2127 Project: WWTF Headworks Improvements Contract Name: Letting No. 3/Project No. 21-03 Date Issued: 11/16/2021 Effective Date of Work Change Directive: 11/16/2021 Contractor is directed to proceed promptly with the following change(s): Description: This Work Change Directive is to remove and replace the existing single door on the west, upper level of Building 30. Attachments: Work Change Directive Proposal No.11 from Rice Lake. Purpose for the Work Change Directive: To proceed with the work. Directive to proceed promptly with the Work described herein, prior to agreeing to change in Contract Price and Contract Time, is issued due to: ❑ Non -agreement on pricing of proposed change. © Necessity to proceed for schedule or other reasons. Estimated Change in Contract Price and Contract Times (non -binding, preliminary): Contract Price: $4,491.67 Contract Time: 0 days Basis of estimated change in Contract Price: © Lump Sum ❑ Unit Price ❑ Cost of the Work ❑ Other Recommended by Engineer By: Jennifer Svennes Title: Project Manager Date: 11/16/2021 [increase] ideffeas of yet esti .=`ee Authorized by Owner Tim Gratke Wastewater Supervisor 11/24/2021 EJCDC® C-940, Work Change Directive. Copyright' 2018 National Society of Professional Engineers, American Council of Engineering Companies, and American Society of Civil Engineers. All rights reserved. Page 1 of 1 4t�EE 00, RICE LAKE, CONSTRUCTION GROUP Work Change Directive Proposal 2127-11 November 8, 2021 Nero Engineering Jennifer Svennes 7135 Madison Ave W Minneapolis, MN RE: Hutchinson WWTF Headworks Improvements — WCD 11 Remove and Replace Headworks Building Single Door and Frame. Dear Nero Engineering (Attn: Jennifer Sveenes): Rice Lake proposes to furnish labor, material, and equipment for the changes to the project documents to remove and replace the existing Headworks Building single door & frame on the Drum screen side of the building. This includes re -costing the new door and assumed the existing glazing is to be reinstalled in the new door. This also includes new door hardware. All for the sum of $4,491.67 Breakdown attached. Sincerely, RICE LAKE CONSTRUCTION GROUP Jaime Barry Project Manager 22360 County Road 12 PO Box 517 Deerwood, MN 56444 PH 218-546-5519 FX 218-546-7016 Ricer LAi�E. 22360 County Road 12, PO Boa 517 Deerwood, MN 56444 CONSTRUCTION ESTIMATE PROJECT NAME Hutchinson, MN - W WTF Headworks Improvements RLCG PROJECT NO. 2127 Work Change Directive Proposal 11 Date: 11/8/2021 Reference: Request from Tun to replace the Headworks Building Dmm Screen door and frame. LABOR MATERIAL SUB EQUIP. LINE DESCRIPTION TY UNIT RATE HOURS $RATE TOTAL RATE TOTAL TOTAL TOTAL TOTAL Remove Door and Frame (salvage glazing) 1.0 LS 2.50 $82.00 $205.00 $0.00 $0.00 $50.00 $255.00 0.00 $82.00 $0.00 $0.00 $0.00 $0.00 $0.00 Reinstall New Door and Frame along with Salvaged Glazing & Coat Door 1.0 LS 10.00 $82.00 $820.00 $2,287.33 S2,287.33 $300.00 $0.00 S3,407.33 0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Misc Small Tools and Materials L0 is 0.00 $0.00 $0.00 $51.25 S51.25 $0.00 $0.00 $51.25 5% of labor 0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Sales Tax 1.0 Is 7.8800% 0.08 $0.00 $0.00 $184.28 $184.28 $0.00 $0.00 $184.28 0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 0 12.50 $1,025.00 $2,522.86 $300.00 $50.00 $3,898 Rice Lake Mark-up on Subs-5% $15.00 $15.00 Rice Lake Mk -up @ 15% $539.68 Bond Cost @ 1% $39.13 Total Change Order Request S4,491.67 meImm ACORNERsTONEINCOMMERCIALHARDWARE DAVIDHARDWAREINC. 10990 601h Street North, Stillwater, MN 55082 Phone: 651-429-8421 Fax: 651-207-6366 Web: davidhardware.net 11-8-21 REVISED RE: Replacement door — Hutchinson, MN HOLLOW METAL DOORS & FRAMES FINISH HARDWARE $2,068.00 tax included, delivered, for furnishing- 1 Hollow metal door 3' x 7' — narrow lite —mortise — 18 gauge -polystyrene Finish hardware 3 Hinges NRP 1 Mortise lock 1 Closer x stop x hold open 1 Kick plate 1 Set weather strip 1 Sweep 1 Threshold EMAILED ADD: $415.00 for exterior frame at the replacement door listed above BASED ON: Emails and picture per Jamie. Schlage hardware in satin chrome and aluminum finish. Hollow metal frame same as others provided by us — 5 % 4" head, 14 gauge, EWA We DO NOT include any: Glass — figured as existing We are a SBE/CERT vendor We acknowledge receipt of addendums # - Plan Dated This bid is based on the following: 1. Material only, no installation is included unless noted. 2. This quotation is valid for 30 days from above date. 3. All prices are FOB job site. 4. Since some items are dependent on factory delivery, we will not accept a contract involving liquidated damages for failure to deliver by a certain date. We will not share or accept responsibility if liquidated damages are written into your contract with the owner. Accepted by: Scott Hall DAVID HARDWARE INC. Date: CITY OF HUTCHINSON, MN CHANGE ORDER HUTCH INSON Engineering Dept, 111, Hassan St SE, Hutchinson MN 55350 A CITY ON PURPOSE. 320-234-4209 11/30/2021 SP/SAP(s) NA MN Project No.: NA Change Order No. 7 Project Description: WWTF Headworks Improvements CityrPrroject L3P21-03 :t Location Wastewater Treatment Facility (W WTF) Headworks Improvements Project: Procurement and construction of forcemains, pumps, drum screens, grit removal system, splitter box, process mechanical upgrades, structural improvements, electrical implementations and appurtenances. Agency City of Hutchinson Local Project No. L3P21-03 actor Rice Lake Construction Group Contract No. IL3P21-03 PO Box 517, Deerwood, MN 56444 Change Order Amount $ Issue: Insufficient anchorage between sleeve and bolt pattern to attach flange to wall Resolution: Installation of a fabricated plate to anchor to wall. $1,960.12 Estimate Of Cost: (Include any increases or decreases in contract items, any negotiated or force account items.) *-Group/fundi Item No. Description Lump Sum Price +or — +or— ng Category Quantity Amount $ Change Order 7 Work Change Directive 12 - 24" overflow connection 1 $1,960.12 1 $1,960.12 Net Change this Change Order $1,960.12 —Group/funding category is required for federal aid projects \pproved by Project Engineer: Jennifer Svennes Approved by Contractor: Rice Lake Construction Group iigned: Signed: )ate: 11/30/2021 Phone: 605-690-9073 Printed Name: Jaime Barry Date: Phone: 218-546-5519 (Approved by City Engineer: Kent Exner Signed: Date: Phone: 320-234-4212 City Council Approval: 12/14/2021 WORK CHANGE DIRECTIVE NO.: 12 Owner: City of Hutchinson Owner's Project No.: 1_31321-03 Engineer: Nero Engineering Engineer's Project No.: 10035 Contractor: Rice Lake Construction Group Contractor's Project No.: 2127 Project: WWTF Headworks Improvements Contract Name: Letting No. 3/Project No. 21-03 Date Issued: 11/16/2021 Effective Date of Work Change Directive: 11/16/2021 Contractor is directed to proceed promptly with the following change(s): Description: The existing 24" overflow from the EQ Lift Station was a plain end connection at the wall that needed to be connected to in this project. The design intent was to bolt the flange of a new 24" elbow directly to the wall. During construction it was found that the existing 24" was installed through a sleeve and there would not be sufficient anchorage between the sleeve and the bolt pattern to attach the flange directly to the wall. This work change directive includes the furnishing and installation of a fabricated plate to anchor to the wall. The 24" elbow will then be connected to the plate. Attachments: Work Change Directive Proposal No. 12 from Rice Lake. Email and RFI #5. Purpose for the Work Change Directive: To proceed with the necessary work. Directive to proceed promptly with the Work described herein, prior to agreeing to change in Contract Price and Contract Time, is issued due to: ❑ Non -agreement on pricing of proposed change. © Necessity to proceed for schedule or other reasons. Estimated Change in Contract Price and Contract Times (non -binding, preliminary): Contract Price: $1,960.12 Contract Time: 0 days Basis of estimated change in Contract Price: © Lump Sum ❑ Unit Price ❑ Cost of the Work ❑ Other Recommended by Engineer By: Jennifer Svennes Title: Project Manager Date: 11/16/2021 [increase] rd....Feasel [not yet estima+..4 Authorized by Owner Tim Gratke Wastewater Supervisor 11/24/2021 EJCDC® C-940, Work Change Directive. Copyright' 2018 National Society of Professional Engineers, American Council of Engineering Companies, and American Society of Civil Engineers. All rights reserved. Page 1 of 1 4t�EE 00, RICE LAKE CONSTRUCTION GROUP Work Change Directive Proposal 2127-12 November 8, 2021 Nero Engineering Jennifer Svennes 7135 Madison Ave W Minneapolis, MN RE: Hutchinson WWTF Headworks Improvements — WCD 12 Furnish a Fabricated EQ Overflow Plate Dear Nero Engineering (Attn: Jennifer Sveenes): Rice Lake proposes to furnish labor, material, and equipment for the changes to the project documents to furnish a fabricated plate for the EQ Lift Station Overflow. upon opening the EQ Lift Station lid it was discovered that a sleeve was installed around the existing 24" overflow pipe that conflicted with drilling and anchoring a flange directly to the wall per the RFL The cost for furnishing a fabricated plate to anchor onto the EQ wall and then bolt the 24" overflow 90 onto is below. All for the sum of $1,960.12 Breakdown attached. Sincerely, RICE LAKE CONSTRUCTION GROUP Jaime Barry Project Manager 22360 County Road 12 PO Box 517 Deerwood, MN 56444 PH 218-546-5519 FX 218-546-7016 Ricer LAi�E. 22360 County Road 12, PO Boa 517 Deerwood, MN 56444 CONSTRUCTION ESTIMATE PROJECT NAME Hutchinson, MN - W WTF Headworks Improvements RLCG PROJECT NO. 2127 Work Change Directive Proposal 12 Date: 11/8/2021 Reference: RFI 05; upon opening up the EQ Lift Station lid it was discovered that a sleeve was installed around the existing 24" overflow pipe that conflicted with drilling and anchoring a flange directly to the wall per the RFL The cost for furnishing a fabricated plate to anchor onto the EQ wall and then bolt the 24" overflow 90 onto is below. LABOR MATERIAL SUB EQUIP. LINE DESCRIPTION QTY UNIT RATE HOURS $RATE TOTAL RATE TOTAL TOTAL TOTAL TOTAL Furnish Fabricated Plate to Anchor 24"90 to Wall 1.0 LS 0.00 $82.00 $0.00 $1,519.98 S1,519.98 $0.00 $50.00 S1,569.98 0.00 $82.00 $0.00 $0.00 $0.00 $0.00 $0.00 0.00 $82.00 $0.00 $0.00 $0.00 $0.00 $0.00 0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Misc Small Tools and Materials 1.0 is 0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 5% of labor 0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Sales Tax 1.0 Is 7.8800% 0.08 $0.00 $0.00 $119.77 $119.77 $0.00 $0.00 $119.77 0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 0 1 0.00 $0.00 $1,639.75 $0.00 $50.00 $1,690 Rice Lake Mark-up on Subs-5% $0.00 $0.00 Rice Lake Mark-up @ 15% $253.46 Bond Cost @ 1% $16.90 Total Change Order Request S1,960.12 11 /8/21, 3:20 PM Mail - Jaime Barry - Outlook Rob Sand <robs @midcounty fa b.com > Mon 11/1/2021 10:24 AM To: Jaime Barry Caution: This email originated from outside the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. Jaime, Mark us down for $1,650 tax and delivery included. Thanks Rob Sand Mid County Fabricating Inc 395 Ervin Industrial Drive Jordan, MN 55352 952-492-5500 robs@)midcountyfab.com This email, and any documents which may accompany it, contain information which is intended for use only by the individual to whom it is addressed, and may contain information that is privileged, confidential and/or exempt from disclosure under applicable law. If the reader of this message is not the intended recipient any review, disclosure, dissemination, distribution, copying or other use of this message or its substance is strictly prohibited. If you have received this message in error, please contact me immediately to arrange for return or destruction. https://outlook.office.com/mail/id/AAQkADZhYTAzNTkl LTcyMj UtNGMxYS 1 hYTY4LWIwN WRjNDMSMTBiMgAQAE%2BbVgaoxpl NgDp6XYcW%2FOk... 1 /1 HUTCHINSON CITY COUNCIL c`=yaf Request for Board Action 7AZ Owl-7 Agenda Item: CONSIDER APPROVAL OF AMENDED AND RESTATED DEVELOPMENT AG� Department: EDA LICENSE SECTION Meeting Date: 12/14/2021 Application Complete N/A Contact: Miles R. Seppelt Agenda Item Type: Presenter: none Reviewed by Staff ❑ Consent Agenda Time Requested (Minutes): 0 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: The City approved the establishment of an economic development Tax Increment Financing (TIF) District in 2018 to assist Warrior Mfg. with its most recent expansion. A review of documents related to the Warrior TIF District revealed that some needed technical language should be added to the Development Agreement between the City and Silver Lake Capital Partners (which owns the property and building housing Warrior Manufacturing). The changes made are purely technical in nature and do not alter the substance of the Development Agreement. In addition, City Council approval is being requested for the the Tax Increment Revenue Note specified in the Development Agreement. This is a "pay-as-you-go" revenue note to be paid only from the property taxes paid in by Silver Lake Capital Parters, so no City dollars are obligated. The updated Development Agreement (showing the technical changes made) and Tax Increment Revenue Note are both enclosed for your review. Both documents have been reviewed by the City Attorney and Finance Director and staff is recommending approval. If you have any questions or need additional information, please give me a call anytime at 234-4223. BOARD ACTION REQUESTED: (a) Approval of the Amended and Restated Development Agreement between the City of Hutchinson and Silver Lake Capital Partners, LLC and (b) Approval of Tax Increment Revenue Note Fiscal Impact: $ 0.00 Funding Source: N/A FTE Impact: 0.00 Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: AMENDED AND RESTATED DEVELOPMENT AGREEMENT BETWEEN CITY OF HUTCHINSON, MINNESOTA AND SILVER LAKE CAPITAL PARTNERS, LLC Dated as of December _, 2021 THIS INSTRUMENT DRAFTED BY: Fryberger, Buchanan, Smith & Frederick, P.A. 700 Lonsdale Building 302 West Superior Street Duluth, Minnesota 55802 CJ V/22546-0 TABLE OF CONTENTS ARTICLE 1 DEFINITIONS............................................................................................ 1 Section 1.1 Definitions................................................................................ 1 ARTICLE 2 REPRESENTATIONS AND WARRANTIES...................................................... 3 Section 2.1 By the City.................................................................................. 3 Section 2.2 By the Developer........................................................................ 3 ARTICLE 3 USE, OWNERSHIP OF THE DEVELOPMENT PROPERTY; RESTRICTIONS......... 4 Section3.1 Use.......................................................................................... 4 Section3.2 Ownership.................................................................................. 4 Section 3.3 Damage or Destruction................................................................ 5 ARTICLE 4 CONSTRUCTION OF PROJECT.................................................................. 5 Section 4.1 Construction Plans.................................................................... 5 Section 4.2 Undertaking of Improvements....................................................... 5 Section 4.3 Certificate of Completion............................................................. 5 Section 4.4 Progress Reports....................................................................... 6 Section 4.5 Access to Property..................................................................... 6 ARTICLE 5 DEFENSE OF CLAIMS; INSURANCE............................................................ 6 Section 5.1 Defense of Claims..................................................................... 6 Section 5.2 Insurance................................................................................ 7 ARTICLE 6 PUBLIC ASSISTANCE ................................................................................ 8 Section 6.1 Development Costs; Public Assistance ........................................... 8 Section 6.2 Conditions Precedent to Public Assistance ....................................... 9 Section 6.3 Obligations of Developer.............................................................. 9 ARTICLE 7 PROHIBITIONS AGAINST ASSIGNMENT AND TRANSFER ............................... 9 Section 7.1 Transfer of Property and Assignment .............................................. 10 Section 7.2 Termination of Limitations on Transfer ............................................. 10 ARTICLE 8 EVENTS OF DEFAULT; FEES....................................................................... 10 Section 8.1 Events of Default......................................................................... 10 Section 8.2 Remedies on Default.................................................................... 10 Section 8.3 No Remedy Exclusive................................................................... 11 Section8.4 Waivers...................................................................................... 11 Section 8.5 Agreement to Pay Attorney's Fees ................................................... 11 ARTICLE 9 BUSINESS SUBSIDY STATUTE..................................................................... 12 Section 9.1 Statutory Requirements................................................................. 12 Section 9.2 Description of Business Subsidy......................................................12 Section 9.3 Public Purpose of the Business Subsidy ............................................ 12 Section 9.4 Goals of the Business Subsidy........................................................ 12 ARTICLE 10 GENERAL PROVISIONS..............................................................................12 Section 10.1 Conflicts of Interest; City Representatives Not Individually Liable........... 12 Section 10.2 Equal Employment Opportunity...................................................... 13 Section 10.3 Non-Discrimination........................................................................13 Section 10.4 Titles of Articles and Sections..........................................................13 Section 10.5 Term of Agreement....................................................................... 13 Section 10.6 Provisions Surviving Termination..................................................... 13 ARTICLE 11 ADMINISTRATIVE PROVISIONS...................................................................13 Section11.1 Notices.......................................................................................13 29 Section 11.2 Binding Effect.............................................................................. 13 Section 11.3 Severability................................................................................. 14 Section 11.4 Amendments, Changes and Modifications ......................................... 14 Section 11.5 Further Assurances and Corrective Instruments..................................14 Section 11.6 Execution Counterparts................................................................. 14 Section 11.7 Applicable Law............................................................................ 14 Schedule A Development Propertygrepery.....................................................................17 Schedule B Improvements & Estimated Costs.....................................................18 Exhibit A Certificate of Completion.................................................................19 Exhibit B Form of TIF Note...........................................................................20 210 DEVELOPMENT AGREEMENT This Amended and Restated Development Agreement (the "Agreement') is made as of December _, 2021, by and between the City of Hutchinson, Minnesota, a Minnesota municipal corporation (the "City'), and Silver Lake Capital Partners LLC, a Minnesota limited liability company (the "Developer"). WITNESSETH: WHEREAS, in order to promote job creation in the community and strengthen the local economy the City Council adopted Resolution No. 14397 on August 28, 2018, Adopting a Modification to the Development Program for Development District No. 4; and establishing Tax Increment Financing District No. 4-20 Therein and Adopting a Tax Increment Financing Plan Therefor; and WHEREAS, the City believes that the Development activities associated with the Project pursuant to this Agreement are in the best interests of the City and benefits the health, safety, morals and welfare of its residents, and complies with the applicable state and local laws and requirements under which the Project has been undertaken and is being assisted. WHEREAS, the City and the Developer desire to amend and restate that certain Development Agreement by and between the parties dated August 21, 2019. 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: "Agreement" means this Agreement, as the same may be from time to time modified, amended or supplemented. "Approval Date" means the date upon which the final execution of this agreement takes place "Benefit Date" is the date when the improvements are finished for the entire project; or when the business occupies the property, whichever is earlier and the business receives a Certificate of Occupancy from the City. For purposes of this Agreement. the Benefit Date is June 9, 2020. `Business Subsidy' means a state or local government agency grant, contribution of personal property, real property, infrastructure, the principal amount of a loan at rates below those commercially available to the recipient, and reduction or deferral of any tax or any fee, any guarantee of any payment under any loan, lease, or other obligation, or any preferential use of government facilities given to a business, and as defined by the Business Subsidy Statute. `Business Subsidies Act' means Minnesota Statutes, Sections 116J.993 through 116J.995. `Business Subsidy Report' means the annual report required to comply with M.S. 116J.994 Subd. 7.(b). "Capital Investment" means any investment that is defined as depreciable for purposes of the U.S. Internal Revenue Service. "Certificate of Completion" means a certification in the form attached hereto as Exhibit A, to be provided to the Developer pursuant to this Agreement. "City" means the City of Hutchinson, Minnesota. "City Council" means the City Council of the City of Hutchinson, Minnesota. "Construction Plans" means the plans, specifications, drawings and related documents for the construction work to be performed by the Developer on the Development Property. "County" means the County of McLeod, Minnesota. "Default Notice" means written notice from the City to the Developer setting forth the Event of Default and the action required to remedy the same. "Developer" means Silver Lake Capital Partners LLC, a Minnesota limited liability company, and its successors and assigns and is synonymous with "Qualified Business." "Development Property" means the lot owned by the Developer legally described as Block 1, Lot 1, Hutchinson Fifth Avenue Industrial Park, City of Hutchinson, McLeod County, Minnesota compromising 10.85 acres, more or less. "Event of Default" means as any of the events set forth in Article 8, hereof. "Full Time Equivalent Job" means those jobs in which an employee, or multiple employees whose combined time on the job, totals to at least 2,080 hours of work within a 12- month period. "Improvements" means the improvements to be undertaken by the Developer as a part of the Project on the Development Property all as further described in Schedule B attached hereto. "McLeod County" means the County of McLeod, Minnesota, a political subdivision of the State of Minnesota. "Person" means an individual, corporation, partnership, Limited Liability Company, association or any other entity. "Project' means the construction on the Development Property of an addition of approximately 40,800 square feet of warehouse and offices along with additional parking lots and driveways along with related improvements. "Project Costs" means certain costs incurred and to be incurred by the Developer in the acquisition and construction of the Project, the estimated types and amounts of which are shown on Schedule B to this Agreement. "Project Description" means the improvements and project costs as described in Schedule B attached hereto. "Qualified Business" means Silver Lake Capital Partners LLC, a Minnesota limited liability company, and its successors and assigns and is synonymous with "Developer." "Property" means the parcel legally described as Block 1, Lot 1, Hutchinson Fifth Avenue Industrial Park, City of Hutchinson, McLeod County, Minnesota compromising 10.85 acres, more or less. "Public Assistance" means the creation of the Economic Development Tax Increment Financing District. "Section" means a Section of this Agreement, unless used in reference to Minnesota Statutes. "State" means the State of Minnesota. "TIF Act" means Minnesota Statutes, Sections 469.174 to 469.1794, as amended. "TIF District" means Tax Increment Financing (Economic Development) District No. 4-20 to be located within Development District No. 4 which qualifies as an economic development district under the TIF Act. "TIF Note" means the Tax Increment Revenue Note which is expected to be executed and delivered by the City to Developer pursuant to Section 6.1 to provide the funds for payment of a portion of the Development Costs, as described in Section 6.1 hereto; the definition of the TIF Note shall include any notes thereafter issued to refund the TIF Note. "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 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 ten (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 ten (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 Section 2.1 By the City. The City makes the following representations to the Developer: (a) The City is a municipal corporation duly organized and existing under the laws of Minnesota. Under the provisions of the Act, the City has the power to enter into this Agreement and carry out its obligations hereunder. Section 2.2 By the Developer. The Developer represents and warrants that (b)LaL_The Developer Is a Minnesota limited liability company, has power toy- - - Formatted: Outline numbered + Level: 3 + Numbering enter into this Agreement and has duly authorized, by all necessary corporate action, the Style: a, b, c, ... + Start at: 1 + Alignment: Left + Aligned execution and delivery of this Agreement. I at: 1" + Tab after: 1.25" + Indent at 0.5" (e)LbLThe Developer shall, 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)LcL_At such time or times as may be required by law, the Developer will have complied with all local, state and federal environmental laws and regulations applicable to the Improvements, and will have obtained any and all necessary environmental reviews, licenses, clearances and approvals. The Developer has received no notice or communication from any local, state or federal official that the activities of the Developer or the City with respect to the Development Property may be or will be in violation of any environmental law or regulation. The 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. (e)LdLNeither 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 the Developer is now a party or by which the Developer is bound. (t)LeLThe 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 money has been issued. (7g)f�The Developer has no knowledge or information that any member of the City Council or any other officer of the City has any direct or indirect financial interest in the Developer, the Development Property or the Project. -(g) The Developer will obtain, in a timely manner, all required permits,--- � Formatted: Indent: Left: 0.5" licenses and approvals, and will meet, in a timely manner, all requirements of all local, state and federal laws and regulations which must be obtained or met in connection with the Improvements. Without limitation to the foregoing, the Developer will request and seek to obtain from the City all necessary variances, conditional use permits and zoning changes. (h) The Developer would not undertake the Project without the financial assistance to be provided by the City pursuant to this Agreement. (i) Apart from the assistance to be provided under this Agreement, the Developer shall pay all standard charges and fees due with respect to real estate developments and allocable to the Development Property under City ordinances and the City Code, including but not limited to special assessments for local improvements, sewer and water use charges, building permit fees, plat fees, inspection fees, storm water fees and the like used against the Development Property. ARTICLE 3 Use, Ownership of Development Property; Restrictions Section 3.1 Use. The 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 laws, ordinances and regulations. Section 3.2 Ownership. The Developer hereby represents and warrants that the Developer is the owner in fee simple of the Development Property and that there are no liens, defects or other encumbrances upon title to the Development Property that would hinder the Development of the Development Property by the Developer as contemplated by this Agreement. Section 3.3 Damage or Destruction. Upon any damage or destruction of the Project, or any portion thereof, by fire or other casualty, the Developer shall within one hundred twenty (120) days after such damage or destruction, commence the process required to repair, reconstruct and restore the damaged or destroyed Project, or portion thereof, to substantially the same condition or utility value as existed prior to the event causing such damage or destruction and shall diligently pursue such repair, reconstruction and restoration. ARTICLE 4 Construction of Project Section 4.1 Construction Plans. The Developer shall make available Construction Plans for the Project to the City prior to construction. The City shall approve the Construction Plans in writing if, in the reasonable discretion of the City, the Construction Plans: (a) conform to all applicable federal, state and local laws, ordinances, rules and regulations; (b) are adequate to provide for construction of the Project; and (c) no Event of Default has occurred. No approval by the City shall relieve the 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 construct the Project. 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 therefore, and shall be made within thirty (30) days after the date of their receipt by the City. If the City rejects the Construction Plans, in whole or in part, the Developer shall submit new or corrected Construction Plans within thirty (30) days after written notification to the 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 the City. Section 4.2 Undertaking of Improvements. (a) Subject to Unavoidable Delays, the Developer will complete the Project by December 31, 2020, and all in accordance with the terms of the Project Description. (b) All work with respect to the Project shall be in substantial conformity with the Construction Plans approved by the City. Upon approval by the City of the Construction Plans, the Developer shall promptly begin the Project and diligently prosecute the completion the Development of the Development Property through the construction of the improvements in accordance with the requirements of the Project Description. (c) The 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 utility lines and facilities shall be subject to approval of the City and any private utility company involved. Except for public improvements, which are undertaken by the City or other governmental body and assessed against benefited properties, all street and utility installations, relocations, alterations and restorations shall be at the Developer's expense and without expense to the City. The Developer, at its own expense, shall replace any public facilities or utilities damaged during the Project by the Developer or its agents or by others acting on behalf of or under their direction or control of the Developer. Section 4.3 Certificate of Completion. (4)LaL_Promptly after completion of the Project In accordance with the Project— - - Formatted: Outline numbered + Level: 3 + Numbering Description, the Developer will provide the City with a certificate of substantial Style: a, b, c, ... + Start at: 1 + Alignment: Left + Aligned completion and the City will furnish the Developer with a Certificate of Completion in at: 1" + Tab after: 1.25" + Indent at 0.5" substantially the form attached hereto as Exhibit A as conclusive evidence of satisfaction and termination of the agreements and covenants of this Agreement with respect to the obligations of the Developer to complete the Project. The furnishing by the City of such Certificate of Completion shall not constitute evidence of compliance with or satisfaction of any obligation of the Developer to any Mortgagee. (-@)fby If the City shall refuse or fail to provide such Certificate of Completion, the City shall, within fifteen (15) days after the Developer provides the certificate referenced in Section 4.3(a), provide the Developer with a written statement specifying in what respect the 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 the Developer to obtain the Certificate of Completion. (c) The City shall execute and cause to be delivered to Developer the Certificate of Completion in form attached as Exhibit A within five (5) days of the date of this Agreement. Section 4.4 Progress Reports. Until a Certificate of Completion is issued, the Developer shall make, in such detail as may reasonably be required by the City, and forward to the City, on a monthly basis, a written report as to the actual progress of work on the Project. Section 4.5 Access to Property. The Developer agrees to permit the City and any of its officers, employees or agents access to the Development Property for the purpose of inspection of all work being performed in connection with the Project; provided, however, that the City shall have no obligation to inspect such work. ARTICLE 5 Defense of Claims; Insurance Section 5.1 Defense of Claims (a) The Developer shall indemnify and hold harmless the City, its governing body members, officers, and agents including the independent contractors, consultants, and legal counsel, servants and employees thereof (hereinafter, for the purposes of this Section, collectively the "Indemnified Parties") for any expenses (including reasonable attorneys' fees), loss, damage to property, or death of any person occurring at or about, or resulting from any defect in the Project; provided, however, the Developer shall not be required to indemnify any Indemnified Party for any claims or proceedings arising from any negligent or unlawful acts or omissions of such Indemnified Party. 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 City) and the 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. Notwithstanding the foregoing, if the City has been advised by independent counsel that there may be one or more legal defenses available to it which are different from or in addition to those available to the Developer, the Developers shall not be entitled to assume the defense of such action on behalf of the City, but the Developer shall be responsible for the reasonable fees, costs and expenses (including the employment of counsel) of the City in conducting its defense. The Developer shall not be liable to indemnify any person for any settlement of any such action effected without the Developer's consent. The omission to notify the Developer as herein provided will not relieve the Developer from any liability which they may have to any Indemnified Party pursuant hereto, otherwise than under this section. (b) The Developer agrees to protect and defend the Indemnified Parties, and further agrees to hold the aforesaid harmless, from any claim, demand, suit, action or other proceeding whatsoever by any person or entity arising or purportedly arising from the actions or inactions of the Developer (or other persons acting on its behalf or under its direction or control) under this Agreement, or the transactions contemplated hereby or the acquisition, construction, installation, ownership, and operation of the Project; provided, that this indemnification shall not apply to the warranties made or obligations undertaken by the City in this Agreement or to any actions undertaken by the City which are not contemplated by this Agreement but shall, in any event, apply to any pecuniary loss or penalty (including interest thereon from the date the loss is incurred or penalty is paid by the City at a rate equal to the Prime Rate) as a result of the Project, as constructed and operated by the Developer. (c) All covenants, stipulations, promises, agreements and obligations of the City contained herein shall be deemed to be the covenants, stipulations, promises, agreements and obligations of the City and not of any governing body member, officer, agent, servant or employee of the City, as the case may be. Section 5.2 Insurance. (d)LLThe Developer shall keep and maintain or cause to be kept and -' Formatted: Outline numbered + Level: 3 + Numbering maintained, the Development Property and Project at all times insured against such risks style: a, b, c, ... + start at:1 + Alignment: Left + Aligned and in such amounts, with such deductible provisions, as are customary in connection at: 1" + Tab after: 1.25" + Indent at: 0.5" 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) 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 rehabilitated or renovated as a part of the Project prior to the issuance by the City of a Certificate of Completion 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 $10,000. (e)LbLSubject to the terms of any mortgage relating to the Development Property, policies of insurance required by this Section 5.2 shall insure and be payable to the Developer, and shall provide for release of insurance proceeds to the Developer for restoration of loss. The City shall be furnished certificates showing 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 types 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 Public Assistance Section 6.1 Development Costs: Public Assistance. The Developer has agreed to and shall be responsible to pay all of its respective costs of the Project, as herein provided. However, the City, in order to encourage the Developer to proceed with the construction of the Project, and to assist the Developer in paying the costs thereof, is willing to provide the following Public Assistance: (a) The Developer certifies that the site improvement costs will not be less than $253,000. Accordingly, and in consideration of the Developer's obligations and performance under this Agreement, and in order to defray a portion of such costs over time, the City shall execute and deliver to the Developer the TIF Note in the form attached to this Agreement as Exhibit B. The TIF Note shall be executed and delivered by the City to Developer no later than 30 days after the Developer complies with paragraph (c) of this Section 6.1 so long as no Event of Default exists which has not been cured under this Agreement. Interest on the TIF Note shall start to accrue as of the date that the Developer provides the City the documentation for site improvement costs. (b) The Developer acknowledges and agrees, as provided in the TIF Note, that payments under the TIF Note are to be made only as and to the extent that the City shall be able to receive and retain Available Tax Increment on the Payment Dates specified in the TIF Note. If there is insufficient Available Tax Increment on any Payment Date, the Available Tax Increment shall be applied to interest first and thereafter to principal. There shall be no interest on unpaid interest as it accrues. The City shall not be obligated to make any payment or any further payment or payments as provided in the TIF Note if there is an Event of Default by the Developer under this Agreement that has not been cured as of the Payment Date. TheFeis an Event of -Default by the Develeper6, deF#h',,is AgFeernent that has R-64t .e + a of the Payment Date; (ii)ThAFeis; ' TFaRsfeF without pFieF approval fien; the Gity as provided� Arfinie V I hpreef (c) The Developer further acknowledges and agrees that the City has no - - Formatted: Body Tent First Indent obligation to issue and deliver to the Developer the TIF Note until the Developer has provided the City with documentation satisfactory to the City (invoices, receipts, canceled checks, etc.) showing payment of at least $253,000 in costs authorized under the TIF Plan and this Agreement, or such lesser amount as may be approved by the City, in which case the TIF Note shall reflect a lesser amount as the maximum principal amount equal to the costs authorized herein. (d) The TIF Note will be issued without registration under the State or federal securities laws pursuant to an exemption for such issuance; and, accordingly, the TIF Note may not be assigned or transferred in whole or in part, except in accordance with applicable exemptions from such registration requirements and with the consent of the City, which consent shall not be unreasonably withheld, conditioned, or delayed.- Each assignment or transfer of the TIF Note shall attest full compliance with applicable State and federal security laws. (e) The City in executing this Agreement, consents to the assignment of the Note by the Developer to Warrior Mfq., LLC, a Minnesota limited liability company. Section 6.2 Conditions Precedent to Public Assistance. Notwithstanding anything to the contrary contained herein, the City's obligation to provide the Public Assistance as stated in Section 6.1 shall be subject to satisfaction, or waiver in writing by the City, of all of the following conditions precedent: (i) the Developer shall not be in default under the terms of this Agreement; and (ii) the Developer shall have closed on financing sufficient to pay all costs to be incurred in connection with the Project. The City hereby acknowledges that the conditions precedent set forth hereinabove have been met, and hereby waives in writing said conditions. Section 6.3 Obligations of Developer. In consideration for the City Assistance provided in Section 6.1, the Developer commits to: (a) Create 5 new Full -Time Equivalent (FTE) jobs on the Development Property within two (2) years of the Benefit Date. (b) Provide a cash wage (exclusive of benefits) for the new FTE jobs created of at least equal to the U.S. Department of Health and Human Services Poverty Level for a family of four as of the date this agreement is signed. (As of May 1, 2019 this was $12.38 per hour or $25,750 annually). The City acknowledges that Developer has met this reguirement.3 ARTICLE 7 Prohibitions Against Assignment and Transfer Section 7.1 Transfer of Property and Assignment. DELETED. Section 7.2 Termination of Limitations on Transfer. DELETED. ARTICLE 8 Events of Default; Fees 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 which occurs and continues for more than thirty (30) days after notice by the defaulting party of such default (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 the Developer to construct the Project by December 31, 2020. (b) Failure by the Developer to satisfy the requirements of Section 6.4 hereof. (c) Failure of the Developer to furnish the Construction Plans as required hereunder. (d) Failure of the Developer to pay to the City any amounts required to be paid by the Developer hereunder. 10 (e) Failure of the Developer or the City to observe and perform any other covenant, condition, obligation or agreement on its part to be observed or performed hereunder. (f) Failure of the Developer to pay any taxes and / or assessments on the Development Property as they become due. (g) Filing of any voluntary petition in bankruptcy or similar proceedings by the Developer; general assignment for the benefit of creditors made by the Developer or admission in writing by the Developer of inability to pay its debts generally as they become due; or filing of any involuntary petition in bankruptcy or similar proceedings against the Developer which are not dismissed or stayed within sixty (60) days. Section 8.2 Remedies on Default. In the event the City desires to exercise any of its rights or remedies as provided herein or otherwise available to the City at law or in equity, the City shall first provide written notice to the Developer setting forth with specific particularity the Event of Default and the action required to cure or remedy the same (the "Default Notice"). The Developer shall have thirty (30) days from receipt of a Default Notice to cure or remedy the Event of Default specified in the Default Notice, or such longer period as may be reasonably required to complete the cure as soon as reasonably possible under the circumstances. If, following the Developer's receipt of a Default Notice, the Developer does not cure or remedy the Event of Default therein specified within the time provided above, the City may take any one or more of the following actions at any time prior to the Developer's curing or remedying the Event of Default: (a) Suspend its performance under this Agreement until it receives assurances from the Developer, deemed adequate by the City, that the Developer will cure its default and continue its performance under this Agreement. (b) Terminate all rights of the 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. In the event the City should fail to observe or perform any covenant, agreement or obligation of the City on its part to be observed and performed under this Agreement, the Developer may take any one or more of the following actions: (ia) Suspend its performance under this Agreement until it receives assurances from the City, deemed adequate by the Developer that the City will cure its default and continue its performance under this Agreement. (iiia) Terminate all rights of the City under this Agreement. (iiis) Take whatever action at law or in equity may appear necessary or desirable to the Developer to enforce performance and observance of any obligation, agreement, or covenant of the City under this Agreement. 11 Section 8.3 No Remedy Exclusive. No remedy herein conferred upon or reserved to the City or to the Developer 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 the Developer to exercise any remedy reserved to them, 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 any party to this Agreement shall be in writing. If any provision of this Agreement is breached by any party and thereafter waived by another party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other concurrent, previous or subsequent breach hereunder. Section 8.5 Agreement to Pay Attorneys' Fees. Whenever any Event of Default occurs and the City shall employ attorneys or incur other expenses for the collection of payments due or to become due or for the enforcement or performance or observance of any obligation or agreement on the part of the Developer herein contained, the Developer agrees that it shall, on demand therefore, pay to the City the reasonable fees of such attorneys and such other expenses so incurred by the City. Section 8.6 Acknowledgement by City. The City acknowledges that as of the date of this Agreement. Developer is not, and has not be in default under this Agreement or predecessor agreement between the parties relating to the Project. ARTICLE 9 Business Subsidy Statute Section 9.1 Statutory Requirements. Whereas compliance with provisions of the Minnesota business subsidy statutes (M.S. 116J.993 — 116J.995) require the following, the parties to this Agreement agree to the following Sections of this Article and the provisions contained therein. Section 9.2 Description of Business Subsidy. The Business Subsidy shall consist of the amount received pursuant to the terms of this Agreement and the TIF Note. Section 9.3 Public Purpose of the Business Subsidy. As required by statute, the Business Subsidy must be for a public purpose. In this instance the public purposes are to: (1) Enhance the economic diversity of the city (2) Create high quality job growth (3) Stabilize the community (4) Increase the tax base of the community Section 9.4 Goals of the Business Subsidy. The measurable, specific and tangible goals of the business subsidies shall include: 12 (1) The Qualified business shall create 5 new FTE jobs within two (2) years of the datgsigaiag of the initialthis Development Agreement of August 21, 2019.— (2) The Qualified business shall Provide a cash wage (exclusive of benefits) for the new FTE jobs created of at least equal to the U.S. Department of Health and Human Services Poverty Level for a family of four as of the date of the initial Development Agreement of August 21, 2019.t4is-��(As of May 1, 2019 this was $12.38 per hour or $25,750 annually).; Section 9.5 Goals Met. The City acknowledges that the Developer has met the goals set forth in Section 9.4 of this Agreement. ARTICLE 10 General Provisions Section 10.1 Conflicts of Interest; City Representatives Not Individually Liable. No council 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 council member, official, employee or consultant or employees of the consultants of the City 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 council member, official, employee, or consultant or the employees of the consultants of the City shall be personally liable to the Developer, or any successor in interest, in the event of any default or breach by the City for any amount which may become due to the Developer or successors or on any obligations under the terms of this Agreement. Section 10.2 Equal Employment Opportunity. The 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 10.3 Non -Discrimination. The Developer agrees for itself, and its successors and assigns, that it 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 Development Property or any improvements erected or to be erected thereon, or any part thereof. Section 10.4 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 10.5 Term of Agreement. This Agreement shall terminate when the City and the Developer agree in writing to terminate this Agreement; it being expressly agreed and understood that the provisions of this Agreement are intended to survive the expiration and satisfaction of any security instruments placed of record contemporaneously with this Agreement, if such expiration and satisfaction occurs prior to the expiration of the term of this Agreement, as stated in this Section 10.5. In any and all events, this Agreement shall expire and terminate on the earlier to occur of a) February 1, 2029 or b) the date of the final payment of the Note in accordance with its terms. 13 Section 10.6 Provisions Surviving Termination. Sections 5.1 and 8.5 hereof shall survive any termination, rescission, or expiration of this Agreement with respect to or arising out of any event, occurrence, or circumstance existing prior to the date thereof. ARTICLE 11 Administrative Provisions. Section 11.1 Notices. All notices, certificates or other communications required to be given to the City and the Developer hereunder shall be sufficiently given and shall be deemed given when delivered or deposited in the United States mail in certified form with postage fully prepaid and addressed as follows: If to the City: City of Hutchinson City Hall 111 Hassan Street SE Hutchinson, Minnesota 55350 Attn: City Administrator If to the Developer: Silver Lake Capital Partners LLC 1145 5ch Avenue SE Hutchinson, MN 55350 Attn: Paul Soukup The City and the Developer, by notice given hereunder, may designate different addresses to which subsequent notices, certificates or other communications should be sent. Section 11.2 Binding Effect. This Agreement shall inure to the benefit of and shall be binding upon the City and the Developer and their respective successors and assigns. Section 11.3 Severability. In the event any provision of this 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. Section 11.4 Amendments. Changes and Modifications. This Agreement may be amended or any of its terms modified only by written amendment authorized and executed by the City and the Developer. Section 11.5 Further Assurances and Corrective Instruments. The City and the Developer agree that they will, from time to time, execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered, such supplements hereto and such further instruments as may reasonably be required for correcting any inadequate or incorrect description of the Property or the Improvements or for carrying out the expressed intention of this Agreement. Section 11.6 Execution Counterparts. This 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. Section 11.7 Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota without giving effect to the conflicts -of -laws principles thereof. 14 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the date first above written. CITY OF HUTCHINSON, MINNESOTA By Mayor And City Administrator SILVER LAKE CAPITAL PARTNERS LLC By Its 15 STATE OF MINNESOTA SS. COUNTY OF MCLEOD The foregoing instrument was acknowledged before me this day of 20212 4-9, by Gary Forcier, the Mayor, and Matt Jaunich, the City Administrator, of the City of Hutchinson, Minnesota, a Minnesota municipal corporation, on behalf of the corporation. IN WITNESS WHEREOF, I have set my hand and my official seal this day of ,20212019. Notary Public STATE OF MINNESOTA ) COUNTY OF ) SS. The foregoing instrument was acknowledged before me this day of , 20212019, by , the owner of Silver Lake Capital Partners LLC, a Minnesota limited liability company, on behalf of the company. IN WITNESS WHEREOF, I have set my hand and my official seal this day of , 20212919. Notary Public 16 TAX PARCEL SCHEDULE A DEVELOPMENT PROPERTY Parcel Number Address 23-470-0010 1145 51h Avenue SE Hutchinson, Minnesota, 55350 LEGAL DESCRIPTION Block 1, Lot 1, Hutchinson Fifth Avenue Industrial Park City of Hutchinson, McLeod County, Minnesota 17 SCHEDULE B IMPROVEMENTS & ESTIMATED COSTS 1. Site work + Soil Correction $687,735 2. Site Utilities (Sewer / Water) $175,500 3. Asphalt Driveways / Parking Lot $146,144 4. Concrete Driveways 47,190 SF $306,735 5. Concrete Curb $34,680 6. Landscaping Allowance $25,000 7. Ext Lighting $20,000 Site Costs Above $1,395,794 LB OH&P $69,790 Total Site work Costs $1.465. 884 18 EXHIBIT A WHEREAS, Silver Lake Capital Partners LLC (the "Developer ") is the owner and the Developer of property in the City of Hutchinson and the State of Minnesota described on Schedule "A" attached hereto and made a part hereof (the "Development Property'); and WHEREAS, the Development Property is subject to the provisions of a certain Amended and Restated Development Agreement (the "Agreement') dated December" , 2021, by and between the Developer and the City of Hutchinson, Minnesota (the "City"); and WHEREAS, the Developer has fully and duly performed all of the covenants and conditions of the Developer under the Agreement with respect to the completion of the Project (as defined in the Agreement); NOW, THEREFORE, it is hereby certified that all requirements of the Developer 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 day of , 201 STATE OF MINNESOTA COUNTY OF MCLEOD The foregoing instrument , 2021204-9, by _ the City of Hutchinson, Minnesota. CITY OF HUTCHINSON. MINNESOTA By Its was acknowledged before me this . the 19 Notary Public SS. day of of No. R- EXHIBIT B FORM OF TAX INCREMENT REVENUE NOTE UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF MCLEOD CITY OF HUTCHINSON, MINNESOTA TAX INCREMENT REVENUE NOTE. SERIES 2021 Principal Amount Annual Rate $253,000.00 5.00% THIS NOTE HAS NOT BEEN REGISTERED UNDER THE FEDERAL SECURITIES ACT OF 1933 AND MAY NOT BE SOLD OR OTHERWISE DISPOSED OF FOR VALUE, OR TRANSFERRED, WITHOUT (i) AN OPINION OF COUNSEL APPROVED BY THE ISSUER THAT SUCH SALE, DISPOSITION OR TRANSFER MAY LAWFULLY BE MADE WITHOUT REGISTRATION UNDER THE FEDERAL SECURITIES ACT OF 1933 AND UNDER APPLICABLE STATE SECURITIES LAWS, OR (ii) SUCH REGISTRATION. THE TRANSFERABILITY OF THIS NOTE IS SUBJECT TO RESTRICTIONS (a) REQUIRED BY FEDERAL AND STATE SECURITIES LAWS AND THE RULES, REGULATIONS, AND INTERPRETATIONS OF THE GOVERNMENTAL AGENCIES ADMINISTERING SUCH LAWS, AND THE PROCEDURE ESTABLISHED BY THE ISSUER TO EFFECT COMPLIANCE THEREWITH, GOVERNING UNREGISTERED SECURITIES, AND (b) AGREED TO BY THE OWNER OF SUCH SECURITIES. THIS NOTE HAS NOT BEEN REGISTERED UNDER CHAPTER 80A OF THE MINNESOTA SECURITIES LAWS OR APPLICABLE STATE BLUE SKY LAWS AND MAY NOT BE SOLD, TRANSFERRED, OR OTHERWISE DISPOSED OF FOR VALUE EXCEPT PURSUANT TO REGISTRATION OR OPERATION OF LAW. The CITY OF HUTCHINSON, MINNESOTA, a municipal corporation and political subdivision of the State of Minnesota (the "City"), hereby acknowledges itself to be indebted and, for value received, hereby promises to pay the Principal Amount specified above at the Annual Rate specified above (the "Payment Amounts"), to Silver Lake Capital PartnergHutghinsQ,, Refrigerated Warel;Guse LLC, a Minnesota limited liability company (the "Registered Owner"), or its registered assigns, but only in the manner, at the times, from the sources of revenue, and to the extent hereinafter provided. The Payment Amounts due on this Note shall be payable solely from, and to the extent that the City shall receive the Available Tax Increment, as hereinafter defined. For purposes of this Note, Available Tax Increment shall mean 90% of the Tax Increment received by the City from McLeod County with respect to the Development Property described on Exhibit A hereto and improvements thereon, located in the City's Tax Increment Financing (Economic Development) District No. 4-20 (the "TIF District") within its Development District No. 4 during the six months preceding any Payment Date specified below and which the City is entitled to retain pursuant to the provisions of Minnesota Statutes, Sections 469.174 through 469.1794, as the same may be amended or supplemented from time to time (the "TIF Act') (after deduction of the state auditor fee and the County Auditor fee) and subject to Section 4.3 of the Agreement. Interest payable on this Note shall start to accrue as of the later of the following dates: (i) the Registered Owner provides the City the documentation for Site Improvement Costs as required by the Agreement; and (ii) the City issues the Certificate of Completion for the Minimum Improvements. Payments under this Note shall be applied first to accrued interest and then to the unpaid principal amount hereof. There shall be no accruing on any unpaid interest. The payments on this Note shall be made by the City on a semi-annual basis on February 1 and August 1 commencing August 1, 2021 (which payment Registered Owner has previously received), and continuing through February 1, 20292030 (each referred to herein as a `Payment Date"). This Note shall terminate and be of no further force and effect on February 2, 20292030, or upon payment in full of the principal and interest on this Note, or on any date upon which the City shall have terminated the Agreement (hereinafter defined), whichever occurs earliest ("Maturity"). The City's obligation hereunder to pay each Payment Amount on the respective Payment Dates shall be further conditioned on the fact that there shall not at the time have occurred and be continuing an Event of Default under that certain Amended and Restated Contract for Private Development, dated as of December _, 2021, as the same may be amended from time to time (the "Agreement'), by and between the City and the Registered Owner, and, further, if pursuant to the occurrence of an Event of Default under the Agreement the City elects to cancel and rescind the Agreement, the City shall have no further debt or obligation under this Note whatsoever. Reference is hereby made to the provisions of the Agreement for a fuller statement of the definitions of Tax Increment and Available Tax Increment and the rights and obligations of the City to pay the Payment Amounts of this Note, and said provisions are hereby incorporated into this Note as though set out in full herein. This Note is a revenue obligation and not a general obligation of the City and is payable by the City only from the sources and subject to the qualifications stated or referenced herein. Neither the full faith and credit nor the taxing powers of the City are pledged to the payment of the principal of or interest on this Note and no property or other asset of the City, save and except the above -referenced Available Tax Increment, is or shall be a source of payment of the City's obligations hereunder. This Note is issued by the City in aid of financing a project pursuant to and in full conformity with the Constitution and laws of the State of Minnesota, including the TIF Act. The obligations on this Note are payable solely from Available Tax Increment as defined in the Agreement derived from the City's Tax Increment Financing (Economic Development) District No. 4-20 which the City duly established within its Development District No. 4. Except as hereinafter qualified and subject to Section 6.1(d) of the Agreement, this Note may not be assigned without the consent of the City, which consent shall not be unreasonably withheld, conditioned or delayed. Uponbut,-uqeR such assignment, the assignor shall promptly notify the City at the office of the City Administrator by registered mail, and the assignee shall surrender the same to the City Administrator either in exchange for a new fully registered note or for transfer of this Note on the registration records for the Note maintained by the City. Each permitted assignee shall take this Note subject to the foregoing conditions and subject to all provisions stated or referenced herein. IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions, and things required by the Constitution and laws of the State of Minnesota to be done, to have happened, and to be performed precedent to and in the issuance of this Note have been done, have happened, and have been performed in regular and due form, time, and manner as required by law; and that this Note, together with all other indebtedness of the City outstanding on the date hereof and on the date of its actual issuance and delivery, does not cause the indebtedness of the City to exceed any constitutional or statutory limitation thereon. IN WITNESS WHEREOF, the City of Hutchinson, Minnesota, by its City Council, has caused this Note to be executed by the manual signatures of its Chair and attested by its City Administrator and has caused this Note to be issued on and dated CITY OF HUTCHINSON, MINNESOTA By Its Mayor ATTEST: By Its City Administrator CERTIFICATE OF REGISTRATION It is hereby certified that the foregoing Note, as originally issued on , 2021, was on said date registered in the name of Silver Lake Capital Partners LLC and that, at the request of the Registered Owner of this Note, the undersigned has this day registered the Note in the name of such Registered Owner, as indicated in the registration blank below, on the books kept by the undersigned for such purposes. Date of Signature of Registered Owner Registration City Administrator Silver Lake Capital Partners LLC 1145 5th Avenue SE Hutchinson, MN 55350 Federal Tax ID No.: 20- 3046775 Warrior Mfcg., LLC 1145 5ch Avenue SE Hutchinson, MN 55350 Federal Tax ID No.: 41-2023701 ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto Warrior Mfc1., LLC, a Minnesota limited liability company the within Note and all rights thereunder, and does hereby irrevocably constitute and appoint attorney to transfer the said Note on the books kept for registration of the within Note, with full power of substitution in the premises. Dated: Notice: The assignor's signature to this assignment must correspond with the name as it appears upon the face of the within Note in every particular, without alteration or any change whatsoever. The City Administrator will not effect transfer of this Note unless the information concerning the assignee requested below is provided. Name and Address: Warrior Mfg., LLC 1145 5th Avenue SE Hutchinson, MN 55350 Formatted: Indent: Left: 1.5", First line: 0.5" Taxpayer Identification Number: 41-2023701 THIS NOTE HAS NOT BEEN REGISTERED UNDER THE FEDERAL SECURITIES ACT OF 1933 AND MAY NOT BE SOLD OR OTHERWISE DISPOSED OF FOR VALUE, OR TRANSFERRED, WITHOUT (i) AN OPINION OF COUNSEL APPROVED BY THE ISSUER THAT SUCH SALE, DISPOSITION OR TRANSFER MAY LAWFULLY BE MADE WITHOUT REGISTRATION UNDER THE FEDERAL SECURITIES ACT OF 1933 AND UNDER APPLICABLE STATE SECURITIES LAWS, OR (ii) SUCH REGISTRATION. THE TRANSFERABILITY OF THIS NOTE IS SUBJECT TO RESTRICTIONS (a) REQUIRED BY FEDERAL AND STATE SECURITIES LAWS AND THE RULES, REGULATIONS, AND INTERPRETATIONS OF THE GOVERNMENTAL AGENCIES ADMINISTERING SUCH LAWS, AND THE PROCEDURE ESTABLISHED BY THE ISSUER TO EFFECT COMPLIANCE THEREWITH, GOVERNING UNREGISTERED SECURITIES, AND (b) AGREED TO BY THE OWNER OF SUCH SECURITIES. THIS NOTE HAS NOT BEEN REGISTERED UNDER CHAPTER 80A OF THE MINNESOTA SECURITIES LAWS OR APPLICABLE STATE BLUE SKY LAWS AND MAY NOT BE SOLD, TRANSFERRED, OR OTHERWISE DISPOSED OF FOR VALUE EXCEPT PURSUANT TO REGISTRATION OR OPERATION OF LAW. TAX PARCEL EXHIBIT A TO TAX INCREMENT REVENUE NOTE Development Property Parcel Number Address 23-470-0010 1145 51h Avenue SE Hutchinson, Minnesota, 55350 LEGAL DESCRIPTION Block 1, Lot 1, Hutchinson Fifth Avenue Industrial Park City of Hutchinson, McLeod County, Minnesota No. R-1 UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF MCLEOD CITY OF HUTCHINSON, MINNESOTA TAX INCREMENT REVENUE NOTE, SERIES 2021 Principal Amount Annual Rate $253,000 5.00% THIS NOTE HAS NOT BEEN REGISTERED UNDER THE FEDERAL SECURITIES ACT OF 1933 AND MAY NOT BE SOLD OR OTHERWISE DISPOSED OF FOR VALUE, OR TRANSFERRED, WITHOUT (i) AN OPINION OF COUNSEL APPROVED BY THE ISSUER THAT SUCH SALE, DISPOSITION OR TRANSFER MAY LAWFULLY BE MADE WITHOUT REGISTRATION UNDER THE FEDERAL SECURITIES ACT OF 1933 AND UNDER APPLICABLE STATE SECURITIES LAWS, OR (ii) SUCH REGISTRATION. THE TRANSFERABILITY OF THIS NOTE IS SUBJECT TO RESTRICTIONS (a) REQUIRED BY FEDERAL AND STATE SECURITIES LAWS AND THE RULES, REGULATIONS, AND INTERPRETATIONS OF THE GOVERNMENTAL AGENCIES ADMINISTERING SUCH LAWS, AND THE PROCEDURE ESTABLISHED BY THE ISSUER TO EFFECT COMPLIANCE THEREWITH, GOVERNING UNREGISTERED SECURITIES, AND (b) AGREED TO BY THE OWNER OF SUCH SECURITIES. THIS NOTE HAS NOT BEEN REGISTERED UNDER CHAPTER 80A OF THE MINNESOTA SECURITIES LAWS OR APPLICABLE STATE BLUE SKY LAWS AND MAY NOT BE SOLD, TRANSFERRED, OR OTHERWISE DISPOSED OF FOR VALUE EXCEPT PURSUANT TO REGISTRATION OR OPERATION OF LAW. The CITY OF HUTCHINSON, MINNESOTA, a municipal corporation and political subdivision of the State of Minnesota (the "City"), hereby acknowledges itself to be indebted and, for value received, hereby promises to pay the Principal Amount specified above at the Annual Rate specified above (the "Payment Amounts"), to Warrior MFG, LLC, a Minnesota limited liability company (the "Registered Owner"), or its registered assigns, but only in the manner, at the times, from the sources of revenue, and to the extent hereinafter provided. The Payment Amounts due on this Note shall be payable solely from, and to the extent that the City shall receive the Available Tax Increment, as hereinafter defined. For purposes of this Note, Available Tax Increment shall mean 90% of the Tax Increment received by the City from McLeod County with respect to the Development Property described on Exhibit A hereto and improvements thereon, located in the City's Tax Increment Financing (Economic Development) District No. 4-20 (the "TIF District") within its Development District No. 4 during the six months preceding any Payment Date specified below and which the City is entitled to retain pursuant to the provisions of Minnesota Statutes, Sections 469.174 through 469.1794, as the same may be amended or supplemented from time to time (the "TIF Act") (after deduction of the state auditor fee and the County Auditor fee) and subject to Section 4.3 of the Agreement. Interest payable on this Note shall start to accrue as of the later of the following dates: (i) the Registered Owner provides the City the documentation for Site Improvement Costs as required by the Agreement; and (ii) the City issues the Certificate of Completion for the Minimum Improvements. Payments under this Note shall be applied first to accrued interest and then to the unpaid principal amount hereof. There shall be no accruing on any unpaid interest. The payments on this Note shall be made by the City on a semi-annual basis on February 1 and August 1 commencing August 1, 2021 (which payment Registered Owner has previously received), and continuing through February 1, 2030 (each referred to herein as a "Payment Date"). This Note shall terminate and be of no further force and effect on February 2, 2030, or upon payment in full of the principal and interest on this Note, or on any date upon which the City shall have terminated the Agreement (hereinafter defined), whichever occurs earliest ("Maturity"). The City's obligation hereunder to pay each Payment Amount on the respective Payment Dates shall be further conditioned on the fact that there shall not at the time have occurred and be continuing an Event of Default under that certain Amended and Restated Contract for Private Development, dated as of August 21, 2019, as the same may be amended from time to time (the "Agreement"), by and between the City and the Registered Owner, and, further, if pursuant to the occurrence of an Event of Default under the Agreement the City elects to cancel and rescind the Agreement, the City shall have no further debt or obligation under this Note whatsoever. Reference is hereby made to the provisions of the Agreement for a fuller statement of the definitions of Tax Increment and Available Tax Increment and the rights and obligations of the City to pay the Payment Amounts of this Note, and said provisions are hereby incorporated into this Note as though set out in full herein. This Note is a revenue obligation and not a general obligation of the City and is payable by the City only from the sources and subject to the qualifications stated or referenced herein. Neither the full faith and credit nor the taxing powers of the City are pledged to the payment of the principal of or interest on this Note and no property or other asset of the City, save and except the above -referenced Available Tax Increment, is or shall be a source of payment of the City's obligations hereunder. This Note is issued by the City in aid of financing a project pursuant to and in full conformity with the Constitution and laws of the State of Minnesota, including the TIF Act. The obligations on this Note are payable solely from Available Tax Increment as defined in the Agreement derived from the City's Tax Increment Financing (Economic Development) District No. 4-20 which the City duly established within its Development District No. 4. Except as hereinafter qualified and subject to Section 6.1(d) of the Agreement, this Note may not be assigned but, upon such assignment, the assignor shall promptly notify the City at the office of the City Administrator by registered mail, and the assignee shall surrender the same to the City Administrator either in exchange for a new fully registered note or for transfer of this Note on the registration records for the Note maintained by the City. Each permitted assignee shall take this Note subject to the foregoing conditions and subject to all provisions stated or referenced herein. IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions, and things required by the Constitution and laws of the State of Minnesota to be done, to have happened, and to be performed precedent to and in the issuance of this Note have been done, have happened, and have been performed in regular and due form, time, and manner as required by law; and that this Note, together with all other indebtedness of the City outstanding on the date hereof and on the date of its actual issuance and delivery, does not cause the indebtedness of the City to exceed any constitutional or statutory limitation thereon. IN WITNESS WHEREOF, the City of Hutchinson, Minnesota, by its City Council, has caused this Note to be executed by the manual signatures of its Chair and attested by its City Administrator and has caused this Note to be issued on and dated CITY OF HUTCHINSON, MINNESOTA By Its Mayor ATTEST: By Its City Administrator CERTIFICATE OF REGISTRATION It is hereby certified that the foregoing Note, as originally issued on , 2021, was on said date registered in the name of Warrior Mfg, LLC and that, at the request of the Registered Owner of this Note, the undersigned has this day registered the Note in the name of such Registered Owner, as indicated in the registration blank below, on the books kept by the undersigned for such purposes. Date of Signature of Registered Owner Registration City Administrator Warrior Mfg, LLC 1145 511 Avenue SE Hutchinson, MN 55350 Federal Tax ID No.: ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto the within Note and all rights thereunder, and does hereby irrevocably constitute and appoint attorney to transfer the said Note on the books kept for registration of the within Note, with full power of substitution in the premises. Dated: Notice: The assignor's signature to this assignment must correspond with the name as it appears upon the face of the within Note in every particular, without alteration or any change whatsoever. The City Administrator will not effect transfer of this Note unless the information concerning the assignee requested below is provided. Name and Address: Taxpayer Identification Number: THIS NOTE HAS NOT BEEN REGISTERED UNDER THE FEDERAL SECURITIES ACT OF 1933 AND MAY NOT BE SOLD OR OTHERWISE DISPOSED OF FOR VALUE, OR TRANSFERRED, WITHOUT (i) AN OPINION OF COUNSEL APPROVED BY THE ISSUER THAT SUCH SALE, DISPOSITION OR TRANSFER MAY LAWFULLY BE MADE WITHOUT REGISTRATION UNDER THE FEDERAL SECURITIES ACT OF 1933 AND UNDER APPLICABLE STATE SECURITIES LAWS, OR (ii) SUCH REGISTRATION. THE TRANSFERABILITY OF THIS NOTE IS SUBJECT TO RESTRICTIONS (a) REQUIRED BY FEDERAL AND STATE SECURITIES LAWS AND THE RULES, REGULATIONS, AND INTERPRETATIONS OF THE GOVERNMENTAL AGENCIES ADMINISTERING SUCH LAWS, AND THE PROCEDURE ESTABLISHED BY THE ISSUER TO EFFECT COMPLIANCE THEREWITH, GOVERNING UNREGISTERED SECURITIES, AND (b) AGREED TO BY THE OWNER OF SUCH SECURITIES. THIS NOTE HAS NOT BEEN REGISTERED UNDER CHAPTER 30A OF THE MINNESOTA SECURITIES LAWS OR APPLICABLE STATE BLUE SKY LAWS AND MAY NOT BE SOLD, TRANSFERRED, OR OTHERWISE DISPOSED OF FOR VALUE EXCEPT PURSUANT TO REGISTRATION OR OPERATION OF LAW. TAX PARCEL EXHIBIT A TO TAX INCREMENT REVENUE NOTE Development Property Parcel Number Address 23-470-0010 1145 511 Avenue SE Hutchinson, Minnesota, 55350 LEGAL DESCRIPTION Block 1, Lot 1, Hutchinson Fifth Avenue Industrial Park City of Hutchinson, McLeod County, Minnesota c� HUTCHINSON CITY COUNCIL Request for Board Action A CITY ON PURPOSE. Resolution to sell forfeited vehicles. Agenda Item: Department: Police Services LICENSE SECTION Meeting Date: 12/14/2021 Application Complete N/A Contact: Thomas D Gifferson Agenda Item Type: Presenter: Thomas D Gifferson Reviewed by Staff M Consent Agenda Time Requested (Minutes): 2 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: Requesting approval of resolution to sell forfeited vehicles at auction. 2005 Buick Ranier 2005 Chrysler Sebring BOARD ACTION REQUESTED: Recommend Approval Fiscal Impact: $ 0.00 Funding Source: FTE Impact: 0.00 Budget Change: New Bu Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: N/A Remaining Cost: $ 0.00 Funding Source: N/A RESOLUTION TO SELL AT AUCTION FORFEITED PROPERTY Resolution No. 15379 WHEREAS, Hutchinson Police Services has accumulated forfeited vehicles AND WHEREAS, the Hutchinson City Code provides pursuant to Section 2.70 for the liquidation of forfeited and unclaimed property. AND WHEREAS, the forfeited and unclaimed property has been in the possession of Hutchinson Police Services for more than sixty days, NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: That the Hutchinson City Council hereby approves the sale at auction of the following forfeited vehicles- - White 2005 Buick Rainier, 4 Dr Wagon —VIN/ 5GAET13M752370490 — HPS Case #17006572 Silver 2005 Chrysler Sebring Touring, Convertible — VIN/ 1C3EL55R75N552918 — HPS Case #17016750 Vehicles to be sold at Fahey Auction Services. Adopted by the City Council this 14th day of December 2021. Mayor City Administrator CHECK REGISTER FOR CITY OF HUTCHINSON CHECK DATE FROM 11/24/21- 12/14/21 Check Date Check ---------- EFT1581 Vendor Name ------------------------------------------------------- EFTPS Description ------------------------------------------------------------------- Payroll 10/31/21 - 11/13/21 Amount ------------------- 70,860.56 V----------- 11/19/2021 11/19/2021 EFT1582 Child Support Payroll 10/31/21- 11/13/21 415.78 11/19/2021 EFT1583 MN Dept of Revenue Payroll 10/31/21- 11/13/21 13,509.80 11/19/2021 EFT1584 Provident Life Payroll 10/31/21- 11/13/21 493.04 11/19/2021 EFT1585 PERA Payroll 10/31/21 - 11/13/21 55,981.21 11/19/2021 EFT1586 Further HSA Payroll 10/31/21- 11/13/21 11,613.97 11/19/2021 EFT1587 Mission Square Payroll 10/31/21- 11/13/21 3,425.00 11/19/2021 EFT1588 VOYA Payroll 10/31/21- 11/13/21 460.00 11/19/2021 EFT1589 MNDCP Payroll 10/31/21- 11/13/21 350.00 11/19/2021 EFT1590 EFTPS Payroll 10/31/21 - 11/13/21 1,342.37 11/19/2021 EFT1591 MN Dept of Revenue Payroll 10/31/21- 11/13/21 332.31 11/19/2021 101565 Employee VOIDED Check Payroll 10/31/21- 11/13/21 97.20 11/19/2021 101566 MNPEA Payroll 10/31/21- 11/13/21 663.00 11/19/2021 101567 UNUM Payroll 10/31/21- 11/13/21 1,195.03 11/19/2021 101568 LELS Payroll 10/31/21 - 11/13/21 317.50 11/19/2021 101569 HART Payroll 10/31/21- 11/13/21 622.24 11/19/2021 101570 Employee Check Payroll 10/31/21- 11/13/21 97.20 12/03/2021 101571 Employee Check Payroll 11/14/21- 11/27/21 107.44 12/03/2021 101572 Employee Check Payroll 11/14/21- 11/27/21 212.10 12/03/2021 101573 Employee Check Payroll 11/14/21- 11/27/21 125.35 12/03/2021 101574 NCPERS Payroll 11/14/21 - 11/27/21 288.00 12/03/2021 101575 HART Payroll 11/14/21- 11/27/21 622.24 12/03/2021 101576 Employee Check Payroll 11/14/21- 11/27/21 9.70 12/03/2021 EFT1592 EFTPS Payroll 11/14/21-11/27/21 73,699.31 12/03/2021 EFT1593 Child Support Payroll 11/14/21- 11/27/21 415.78 12/03/2021 EFT1594 MN Dept of Revenue Payroll 11/14/21- 11/27/21 15,218.20 12/03/2021 EFT1595 Provident Life Payroll 11/14/21- 11/27/21 493.04 12/03/2021 EFT1596 PERA Payroll 11/14/21 - 11/27/21 69,864.03 12/03/2021 EFT1597 Further HSA Payroll 11/14/21- 11/27/21 13,628.97 12/03/2021 EFT1598 Mission Square Payroll 11/14/21- 11/27/21 3,625.00 12/03/2021 EFT1599 VOYA Payroll 11/14/21- 11/27/21 460.00 12/03/2021 EFT1600 MNDCP Payroll 11/14/21- 11/27/21 350.00 12/14/2021 101577 ACE HARDWARE - 1315 REPAIR & MAINT SUPPLIES - MULTIPLE DEPTS 1,025.38 12/14/2021 101578 VOID VOIDED CHECK - 12/14/2021 101579 ACE HARDWARE - 1790 REPAIR & MAINT SUPPLIES - FIRE 63.79 12/14/2021 101580 ACE HARDWARE - 1825 REPAIR & MAINT SUPPLIES - POLICE 15.97 12/14/2021 101581 ACE HARDWARE - 6762 CLEVIS - COMPOST 20.30 12/14/2021 101582 AEHA, LLC UB refund for account: 3-330-2460-9-09 60.76 12/14/2021 101583 AHLGREN ELECTRIC RESTROOM LIGHT REPAIR - CITY CTR 80.00 12/14/2021 101584 ALLIED PRODUCTS FLAGS - POLICE 146.34 12/14/2021 101585 AMERICAN TEST CENTER LADDER-1 FIRE TRUCK INSP (ANNUAL) - FIRE 560.00 12/14/2021 101586 ANDERSON, CYNTHIA OR STEVE REFUND: CANCELLED EVENT - EV CTR 800.00 12/14/2021 101587 ANIMAL MEDICAL CENTER ON CROW RIVER OCT PROCESSING/BOARDING FEES - POLICE 1,358.00 12/14/2021 101588 ARAMARK NOV SERVICE - LIQUOR HUTCH 395.04 12/14/2021 101589 ARTISAN BEER COMPANY COST OF GOODS SOLD - LIQUOR HUTCH 1,169.65 12/14/2021 101590 AUTO VALUE - GLENCOE EQUIPMENT PARTS- HATS 367.64 12/14/2021 101591 AUTO XPRESS TANKER #4: REPAIR EXHAUST SYSTEM - FIRE 93.01 12/14/2021 101592 AUTO-CHLOR SYSTEM NOV DISHWASHER SERVICE - SR DINING 220.00 12/14/2021 101593 AXON ENTERPRISE, INC. BODY CAMERA EQUIPMENT- POLICE 6,392.00 12/14/2021 101594 B & C PLUMBING & HEATING INC BOILER: IGNITION CABLE REPAIR - POLICE 309.47 12/14/2021 101595 BECKER ARENA PRODUCTS POLYCARBONATE, TERM FILLER -ARENA 400.00 12/14/2021 101596 BELLBOY CORP COST OF GOODS SOLD - LIQUOR HUTCH 3,642.25 12/14/2021 101597 BERNICK'S COST OF GOODS SOLD - LIQUOR HUTCH 380.57 12/14/2021 101598 BETTER HALF EMBROIDERY SHIRTS, CAPS - MULTIPLE DEPTS 1,023.96 12/14/2021 101599 BOLTON & MENK INC. OTTER & CAMPBELL LAKES DESIGN SERVICES 7,110.00 12/14/2021 101600 BRANDON TIRE CO SLIDER TIRE REPAIR - PARKS 37.21 12/14/2021 101601 BRAUN INTERTEC CORP NEW POLICE FACILITY: THRU 11/12/21 3,737.00 12/14/2021 1101602 1 BREAKTHRU BEVERAGE COST OF GOODS SOLD - LIQUOR HUTCH 13,671.68 CHECK REGISTER A FOR CITY OF HUTCHINSON CHECK DATE FROM 11/24/21- 12/14/21 Check Date Check ---------- 101603 Vendor Name ------------------------------------------------------- BUCKENTIN, JOCELYNN Description ------------------------------------------------------------------- REFUND: MOVED FULL CAMP HOOKUP TO ELEC ONLY Amount ------------------- 30.00 --------------- 12/14/2021 12/14/2021 101604 BUFFALO CREEK ENTERPRISES COST OF GOODS SOLD - LIQUOR HUTCH 80.40 12/14/2021 101605 C & L DISTRIBUTING COST OF GOODS SOLD - LIQUOR HUTCH 63,882.74 12/14/2021 101606 CARD SERVICES SUPPLIES - MULTIPLE DEPTS 25.00 12/14/2021 101607 CARLOS CREEK WINERY COST OF GOODS SOLD - LIQUOR HUTCH 480.00 12/14/2021 101608 CARLSON, DAN FALL 2021 2ND TENNIS CAMP - REC 2,855.00 12/14/2021 101609 CARS ON PATROL SHOP LLC PD REPAIRS/INSTALL EQUIP; MISC TOWING FEES 1,411.18 12/14/2021 101610 CENTRAL HYDRAULICS EQUIPMENT PARTS- MULTIPLE DEPTS 1,334.83 12/14/2021 101611 CENTRAL MCGOWAN ACETYLENE, HIGH PRESSURE - MULTIPLE DEPTS 156.00 12/14/2021 101612 CHEMISOLV CORP FLOCCULENT- WWTP 2,754.00 12/14/2021 101613 CINTAS CORPORATION SUPPLIES & SERVICE - MULTIPLE DEPTS 348.00 12/14/2021 101614 CORE & MAIN LP METERS - WATER 5,084.48 12/14/2021 101615 CORRA GROUP NOV CREDIT REPORT - POLICE 33.00 12/14/2021 101616 CREEKSIDE SOILS BROWN MULCH - CITY CTR 166.60 12/14/2021 101617 CROW RIVER FLORAL & GIFTS FALL MUMS- MULTIPLE DEPTS 77.00 12/14/2021 101619 CROW RIVER PRESS INC SR NEWSLETTERS - SR CTR 40.09 12/14/2021 101620 CROW RIVER WINERY COST OF GOODS SOLD - LIQUOR HUTCH 2,520.00 12/14/2021 101621 DEHN, PETER REIMB: SAFETY FOOTWEAR - STREETS 175.00 12/14/2021 101622 DELANO CEMETERY SERVICES INC ENGRAVING - POLICE 250.00 12/14/2021 101623 DELL MARKETING L.P. MONITORS - MULTIPLE DEPTS 823.47 12/14/2021 101624 DIMLER, KYLE REIMB: SAFETY FOOTWEAR - BLDG INSP 175.00 12/14/2021 101625 DUININCK INC L2P20-02 PYMT 4 TH7/22 & MONTANA CROSSING 3,809.83 12/14/2021 101626 EAST SIDE OIL COMPANIES DIESEL FUEL - COMPOST 1,244.24 12/14/2021 101627 ECOLAB PEST ELIMINATION PEST CONTROL- MULTIPLE DEPTS 237.12 12/14/2021 101628 EHLERS & ASSOCIATES INC JORGENSON HOTELTIF PLAN; 2018 ARBITRAGE 9,030.00 12/14/2021 101629 ERLANDSON, MELISSA REFUND: GYM RENTAL- REC 40.00 12/14/2021 101630 FARM -RITE EQUIPMENT EQUIPMENT PARTS- MULTIPLE DEPTS 3,161.09 12/14/2021 101631 FASTENAL COMPANY REPAIR&MAINTSUPPLIES- MULTIPLEDEPTS 1,102.96 12/14/2021 101632 FEDERAL SIGNAL CORP COMMANDER WTY - POLICE 1,513.00 12/14/2021 101633 FERGUSON WATERWORKS #2518 COUPLERS - WATER 641.76 12/14/2021 101634 FINANCE & COMMERCE 2022 PAVEMENT MGMT BIDS - ENG 287.37 12/14/2021 101635 FIRE SAFETY USA INC FIRE HOSE, GLOVES - FIRE 240.00 12/14/2021 101636 FIRST ADVANTAGE LNS OCC HEALTH SOLU DRUG TESTING 81.19 12/14/2021 101637 FLOW MEASUREMENT& CONTROL COMPANY CERTIFICATION OF FLOW METERS- WWTP 1,521.00 12/14/2021 101638 FORCE AMERICA EQUIPMENT PARTS- STREETS 3,157.72 12/14/2021 101639 FOSTER MECHANICAL HVAC REPAIR - MULTIPLE DEPTS 1,991.13 12/14/2021 101640 FRONTIER PRECISION INC TRIMBLE REPAIR - ENG 810.00 12/14/2021 101641 FUZE LOGISTICS SERVICES USA INC CREEKSIDE FREIGHT TO MULTIPLE LOCATIONS 2,575.00 12/14/2021 101642 GEIKEN'S GUIDE & GUARD, LLC DARE TEACHING - POLICE 570.00 12/14/2021 101643 GOFF, DAVID REFUND: HANGAR OVERPAYMENT -AIRPORT 50.00 12/14/2021 101644 GOLDEN TONGUE CONSULTANTS INTERPRETING - POLICE 67.50 12/14/2021 101645 GOOD NEWS HEATING & A/C INSTALLED TOILET- CITY CTR 875.00 12/14/2021 101646 GRAINGER EQUIPMENT PARTS- MULTIPLE DEPTS 623.31 12/14/2021 101647 GRATKE, TIM REIMB: MESERB MTG EXP - WWTP 134.40 12/14/2021 101648 H&L MESABI PLOW BLADES - HATS 1,670.00 12/14/2021 101649 HACH COMPANY NITRAVER - WATER 82.50 12/14/2021 101650 HANSEN TRUCK SERVICE SERVICE ON #2 & #7 ENGINES- FIRE 1,267.85 12/14/2021 101651 HANSON & VASEK CONSTRUCTION 2021 CONCRETE REPAIRS - STREETS 11,050.00 12/14/2021 101652 HAWK PERFORMANCE SPECIALITIES ICE PAINT SERVICE 2021- ARENA 4,145.00 12/14/2021 101653 HAWKINS INC PROPYLENE GLYCOL- WWTP 1,243.20 12/14/2021 101654 HAYDAY EXPRESS CREEKSIDE FREIGHT TO MULTIPLE LOCATIONS 575.00 12/14/2021 101655 HENNEN EQUIPMENT, INC. TURNER: BEZEL, FITTINGS -COMPOST 60.03 12/14/2021 101656 HILLYARD / HUTCHINSON OPERATING SUPPLIES - MULTIPLE DEPTS 1,196.44 12/14/2021 101657 HOISINGTON KOEGLER GROUP INC SPLASH PAD PROJ THRU 10/31; AREA GROWTH PLANNING 15,799.04 12/14/2021 101658 HUTCHFIELD SERVICES INC DEC JANITORIAL SERVICES - HATS 1,415.00 12/14/2021 101659 HUTCHINSON CHAMBER & TOURISM OCT 2021 LODGING TAX 16,538.88 12/14/2021 101660 HUTCHINSON CO-OP NOV FUEL & SERVICES - MULTIPLE DEPTS 28,603.27 12/14/2021 1101661 1 HUTCHINSON HEALTH TESTING - POLICE 384.00 CHECK REGISTER A FOR CITY OF HUTCHINSON CHECK DATE FROM 11/24/21- 12/14/21 Check Date Check ---------- 101662 Vendor Name ------------------------------------------------------- HUTCHINSON LEADER Description ------------------------------------------------------------------- NOV ADVERTISING - MULTIPLE DEPTS Amount ------------------- 3,638.95 --------------- 12/14/2021 12/14/2021 101663 HUTCHINSON WHOLESALE #1550 COMB WRENCHES - HATS 183.68 12/14/2021 101664 HUTCHINSON WHOLESALE #1551 EQUIPMENT PARTS- COMPOST 385.24 12/14/2021 101665 HUTCHINSON WHOLESALE #1552 EQUIPMENT PARTS- PARKS 843.20 12/14/2021 101666 INGSTAD BROADCASTING NOV ADVERTISING - MULTIPLE DEPTS 782.00 12/14/2021 101667 INTERSTATE BATTERY SYSTEM MINNEAPOL BATTERIES - HATS 359.85 12/14/2021 101668 ISD #423 OCT COMM ED CLASSES 5,456.24 12/14/2021 101669 JACK'S UNIFORMS & EQUIPMENT GOLD NAME PLATES - POLICE 70.79 12/14/2021 101670 JAUNICH, MATT REIMB: CGMC CONF IN WILLMAR - ADMIN 58.24 12/14/2021 101671 JAY MALONE MOTORS MIRROR ASSEMBLY - WWTP 86.10 12/14/2021 101672 JOHNSON BROTHERS LIQUOR CO. COST OF GOODS SOLD - LIQUOR HUTCH 28,670.17 12/14/2021 101673 JUUL CONTRACTING CO SEWER REPAIR & POND SERVICE - MULTIPLE DEPTS 2,587.25 12/14/2021 101674 KAHLERT, STACEY UB refund for account: 2-050-6550-3-04 38.67 12/14/2021 101675 KERI'S CLEANING & HANDYMAN SERVICES NOV CLEANING - VARIOUS CITY LOCATIONS 5,229.06 12/14/2021 101676 KOHLS SWEEPING SERVICE 2021 SHORT LINE STRIPING; CREEKSIDE HAULING 7,825.13 12/14/2021 101677 KRANZ LAWN & POWER STIHL SAW CARB REPAIR - FIRE 108.13 12/14/2021 101678 LANDSKAPINGS LANDSCAPING - MULTIPLE DEPTS 2,800.00 12/14/2021 101679 LANO EQUIPMENT OF NORWOOD NEW GRASSHOPPER MOWER - CEMETERY 10,000.00 12/14/2021 101680 LAWSON PRODUCTS INC SCREWS, DRILL BITS- WWTP 99.75 12/14/2021 101681 LOCATORS & SUPPLIES FLAGS - MULTIPLE DEPTS 740.84 12/14/2021 101682 LOCHER BROTHERS INC COST OF GOODS SOLD - LIQUOR HUTCH 55,878.64 12/14/2021 101683 LUEDTKE CONTRACTING LLC SOUTHFORK POND PROJ STWT 2101- STORM WATER 30,940.00 12/14/2021 101684 LUND, APRIL REFUND: ACTIVITY CANCELLATION - COMM ED 30.00 12/14/2021 101685 LUND, KINZIE REFUND: ACTIVITY CANCELLATION - COMM ED 30.00 12/14/2021 101686 MAGNUSSON, BRIAN REIMB: SAFETY FOOTWEAR - PARKS 175.00 12/14/2021 101687 MARCO TECHNOLOGIES, LLC OCT/NOV PRINTING CONTRACTS- MULTIPLE DEPTS 421.91 12/14/2021 101688 MARCO TECHNOLOGIES, LLC OCT/NOV PRINTING CONTRACTS- MULTIPLE DEPTS 1,917.98 12/14/2021 101689 MARTIN-MCALLISTER PUBLIC SAFETY ASSMT - POLICE 1,100.00 12/14/2021 101690 MARTINSON, ANN REFUND: CANCELLED RESERVATION - PARKS 45.00 12/14/2021 101691 MATHESON TRI-GAS INC HIGH PRESSURE - WWTP 27.45 12/14/2021 101692 MCKAY, JEFF REIMB: TANKER 4 EQUIP - FIRE 24.43 12/14/2021 101693 MCKIMM MILK TRANSIT CREEKSIDE FREIGHT TO MULTIPLE LOCATIONS 900.68 12/14/2021 101694 MCLEOD COUNTY PAYOUT OF E911 BALANCE TO COUNTY 170,343.35 12/14/2021 101695 MCLEOD COUNTY HHW FLAMMABLE SOLIDS DISPOSAL - IT 156.00 12/14/2021 101696 MEDICA DECEMBER MEDICAL INSURANCE 153,018.67 12/14/2021 101697 MEI TOTAL ELEVATOR SOLUTIONS DEC-JAN SERVICE - LIBRARY 208.17 12/14/2021 101698 MENARDS HUTCHINSON MATERIALS FOR NEW PD GARAGE AT RANGE 14,974.19 12/14/2021 101699 MESSNER, SANDRA SEWING SERVICES - POLICE 60.00 12/14/2021 101700 MICHIGAN DEPARTMENT OF AGRICULTURE 2022 FERTILIZER LICENSING RENEWAL- COMPOST 125.00 12/14/2021 101701 MIDWEST PLAYSCAPES INC. TODDLER ADD ON BEAM - PARKS 937.48 12/14/2021 101702 MILLNER HERITAGE VINEYARD & WINERY COST OF GOODS SOLD - LIQUOR HUTCH 646.80 12/14/2021 101703 MINI BIFF EQUIPMENT RENTAL- MULTIPLE DEPTS 180.80 12/14/2021 101704 MINNESOTA DEPT OF AGRICULTURE 2022 REGISTRATION - COMPOST 1,500.00 12/14/2021 101705 MINNESOTA DEPT OF HEALTH Q4 2021 STATE FEE - WATER CONNECTIONS 11,766.00 12/14/2021 101706 MINNESOTA VALLEY TESTING LAB LAB SAMPLE TESTING - MULTIPLE DEPTS 1,132.75 12/14/2021 101707 MORGAN CREEK VINEYARDS COST OF GOODS SOLD - LIQUOR HUTCH 465.00 12/14/2021 101708 MYGUY INC. CONCENTRATE - HATS 364.00 12/14/2021 101709 NEUMANN, LYNN REIMB: SCSU TUITION - PRCE ADMIN 3,538.48 12/14/2021 101710 NORTHERN GREEN EXPO 2022 BOOTH - CREEKSIDE 295.80 12/14/2021 101711 NORTHERN STATES SUPPLY INC HEAT SHRINK RINGS - HATS 15.60 12/14/2021 101712 NORTHERN TIER TRANSPORTATION LLC CREEKSIDE FREIGHT TO MULTIPLE LOCATIONS 5,475.00 12/14/2021 101713 O'REILLY AUTO PARTS ROUND COIL B, MUSCLE MAGIC - PARKS 54.98 12/14/2021 101714 ORTLOFF, KEVIN UB refund for account: 3-765-8350-0-03 28.27 12/14/2021 101715 PAULSON, JOHN REIMB: SAFETY FOOTWEAR - ENG 159.99 12/14/2021 101716 PAUSTIS WINE COMPANY COST OF GOODS SOLD - LIQUOR HUTCH 3,325.00 12/14/2021 101717 PEAT INC. SHAPGNUM FINE CROMWELL- COMPOST 2,955.75 12/14/2021 101718 PEOPLEREADY INC CREEKSIDE TEMP STAFFING 6,863.06 12/14/2021 1101719 1 PHILLIPS WINE & SPIRITS COST OF GOODS SOLD - LIQUOR HUTCH 18,473.01 CHECK REGISTER A FOR CITY OF HUTCHINSON CHECK DATE FROM 11/24/21- 12/14/21 Check Date Check ---------- 101720 Vendor Name ------------------------------------------------------- PLUNKETTS PEST CONTROL Description ------------------------------------------------------------------- 11/15 PEST CONTROL - ARENA Amount ------------------- 102.75 --------------- 12/14/2021 12/14/2021 101721 POSTMASTER POSTAGE - UB BILLING 1,540.00 12/14/2021 101722 PRECISION CONCRETE CUTTING TRIP HAZARD REPAIR - STREETS 150.00 12/14/2021 101723 PREMIUM PLANT SERVICES HYDROBLASTING - WATER 3,837.50 12/14/2021 101724 PREMIUM WATERS DEC SERVICE - PARKS 7.90 12/14/2021 101725 QUADE ELECTRIC INSTALL FLAG POLE LIGHTING SYSTEM AT SR CENTER 1,600.00 12/14/2021 101726 QUILL CORP OFFICE SUPPLIES - POLICE 127.97 12/14/2021 101727 R & R EXCAVATING MCDONALDS LIFT STATION REHAB CONSTRUCTION 63,624.17 12/14/2021 101728 R & R EXCAVATING L10P21-10 & 21-11 PYMT #4 1ST AVE NE & JEFFERSON 39,221.11 12/14/2021 101729 RADWELL INTERNATIONAL MOTOR STARTER, PROTECTOR - COMPOST 170.54 12/14/2021 101730 RAHN PAINTING & CONTRACTING LLC DEC SNOW CONTRACT- MULTIPLE DEPTS 2,790.00 12/14/2021 101731 RED BULL DISTRIBUTION COMPANY, INC. COST OF GOODS SOLD - LIQUOR HUTCH 157.00 12/14/2021 101732 REFLECTIVE APPAREL FACTORY INC VESTS, SHIRTS, JACKETS - STREETS 1,443.35 12/14/2021 101733 REINDERS BULBS - HOLIDAY LIGHTS 56.10 12/14/2021 101734 REINER ENTERPRISES INC CREEKSIDE FREIGHT TO MULTIPLE LOCATIONS 38,772.98 12/14/2021 101735 REVIER WELDING VARIOUS REPAIRS- MULTIPLE DEPTS 918.56 12/14/2021 101736 RICE LAKE CONSTRUCTION GROUP L3P21-03 WWTF HEADWORKS IMPV #5 517,545.02 12/14/2021 101737 RNLTRANSPORT LLC CREEKSIDE FREIGHT TO MULTIPLE LOCATIONS 11,625.00 12/14/2021 101738 ROSENBAUER MOTORS, LLC ENGINE 2 CHASSIS AIR FILTERS- FIRE 550.56 12/14/2021 101739 RUNNING'S SUPPLY REPAIR & MAINT SUPPLIES - MULTIPLE DEPTS 177.14 12/14/2021 101740 SARTELL, CITY OF MULCH & COMPOST 10,636.00 12/14/2021 101741 SCHERER, GEORGE W UB refund for account: 2-900-6750-1-00 27.19 12/14/2021 101742 SCHLUETER, JAMIE & NICOLE UB refund for account: 3-227-7510-2-03 242.99 12/14/2021 101743 SCHUMANN, MIKE REIMB: MSFCA CONF EXP - FIRE 25.00 12/14/2021 101744 SCHWICKERT'S TECTA AMERICA LLC COMPLETED ROOFING INSPECTIONS AT CITY BUILDINGS 6,225.00 12/14/2021 101745 SHAW, KAREN NOV YOGA CLASSES - SR CTR 90.00 12/14/2021 101746 SHORT-ELLIOT-HENDRICKSON, INC VARIOUS PROJECTS- ENG 2,599.13 12/14/2021 101747 SOUTHERN WINE & SPIRITS OF MN COST OF GOODS SOLD - LIQUOR HUTCH 6,945.06 12/14/2021 101748 SPS WORKS ANIMALTAGS- POLICE 153.10 12/14/2021 101749 STANDARD PRINTING-N-MAILING POSTAGE & SUPPLIES - MULTIPLE DEPTS 394.01 12/14/2021 101750 STAPLES ADVANTAGE OFFICE SUPPLIES- MULTIPLE DEPTS 559.16 12/14/2021 101751 STREICH TRUCKING CREEKSIDE FREIGHT TO MULTIPLE LOCATIONS 3,030.00 12/14/2021 101752 SUMMER LAKES BEVERAGE LLC COST OF GOODS SOLD - LIQUOR HUTCH 195.00 12/14/2021 101753 TALL SALES COMPANY OCT 2021 COMMISSIONS - COMPOST 1,418.21 12/14/2021 101754 TECH SALES REPLACEMENT PUMP ASSY & TUBING - WWTP 738.93 12/14/2021 101755 TERMINAL SUPPLY CO EQUIPMENT PARTS- HATS 1,534.22 12/14/2021 101756 THOMAS SCIENTIFIC ORION ROSS ULTRA -TRIODE - WWTP 422.00 12/14/2021 101757 THOMSON REUTERS-WEST NOV ONLINE SOFTWARE SUBS - POLICE 149.90 12/14/2021 101758 TOTAL CONTROL SYSTEMS INC. MCDONALDS LIFT STATION CONTROL PANEL - WWTP 30,896.00 12/14/2021 101759 TRI COUNTY WATER BOTTLE WATER DELIVERY - MULTIPLE DEPTS 240.65 12/14/2021 101760 TRITECH SOFTWARE SYSTEMS LETG SOFTWARE MAINT- POLICE 319.28 12/14/2021 101761 TRUE BRANDS COST OF GOODS SOLD - LIQUOR HUTCH 76.20 12/14/2021 101762 UNUM LIFE INSURANCE CO OF AMERICA DECEMBER LIFE INSURANCE 2,853.93 12/14/2021 101763 USA BLUE BOOK EQUIPMENT PARTS- MULTIPLE DEPTS 1,396.46 12/14/2021 101764 VANDEL00, JAMES & MELISSA UB refund for account: 1-894-3830-2-03 179.26 12/14/2021 101765 VERIZON WIRELESS OCT 03 - NOV 02 PHONE SERVICES - MULTIPLE DEPTS 3,765.67 12/14/2021 101766 VESSCO INC PUMPHEAD - WATER 674.82 12/14/2021 101767 VIKING BEER COST OF GOODS SOLD - LIQUOR HUTCH 15,176.05 12/14/2021 101768 VIKING COCA COLA COST OF GOODS SOLD - LIQUOR HUTCH 487.50 12/14/2021 101769 VIKING SIGNS & GRAPHICS INC SIGNS - FIRE 4,215.00 12/14/2021 101770 VINOCOPIA INC COST OF GOODS SOLD - LIQUOR HUTCH 1,112.25 12/14/2021 101771 VIVID IMAGE WEBSITE PLAN, SUPPORT- MULTIPLE DEPTS 896.00 12/14/2021 101772 WASTE MANAGEMENT OF WI -MN REFUSE DISPOSAL FEES TO LANDFILL 6,980.67 12/14/2021 101773 WATERVILLE FOOD & ICE COST OF GOODS SOLD - LIQUOR HUTCH 239.81 12/14/2021 101774 WINE COMPANY, THE COST OF GOODS SOLD - LIQUOR HUTCH 1,299.20 12/14/2021 101775 WINE MERCHANTS INC COST OF GOODS SOLD - LIQUOR HUTCH 129.61 12/14/2021 101776 WINEBOW FINE WINE & SPIRITS COST OF GOODS SOLD - LIQUOR HUTCH 1,633.51 12/14/2021 101777 WM MUELLER & SONS 11/16ASPHALT -STREETS 322.00 CHECK REGISTER A FOR CITY OF HUTCHINSON CHECK DATE FROM 11/24/21- 12/14/21 Check Date Check ---------- 101778 Vendor Name ------------------------------------------------------- WOLD ARCHITECTS & ENGINEERS Description ------------------------------------------------------------------- NEW POLICE FACILITY: THRU 11/20/21 Amount ------------------- 10,629.90 --------------- 12/14/2021 12/14/2021 101779 ZIEGLER INC GRINDER REPAIR, PARTS - COMPOST 795.07 12/14/2021 101780 ZOLL MEDICAL CORPORATION AED ELECTRODES - FIRE 123.38 Total - Check Register A: $ 1,947,233.31 CHECK REGISTER B FOR CITY OF HUTCHINSON CHECK DATE FROM 11/24/21- 12/14/21 Check Date Check ---------- 101618 Vendor Name ------------------------------------------------------- CROW RIVER GLASS INC. Description ------------------------------------------------------------------- BRONZE LOW-E, LABOR - CITY CTR Amount ------------------- 770.16 --------------- 12/14/2021 Total - Check Register B: 770.16 HUTCHINSON CITY COUNCIL c`=yaf Request for Board Action 7AZ Owl-7 Agenda Item: PUBLIC HEARING ON A RESOLUTION ADOPTING A MODIFICATION TO THE Department: EDA LICENSE SECTION Meeting Date: 12/14/2021 Application Complete N/A Contact: Miles R. Seppelt Agenda Item Type: Presenter: Miles R. Seppelt Reviewed by Staff ❑ Public Hearing Time Requested (Minutes): 10 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: Brian Forcier, developer for the Cobblestone Inn hotel, has expressed interest in redeveloping the Jorgensen Hotel located at 2 Main Street South. The Jorgensen was originally constructed in 1916 and the upper floors of the building have been vacant since the 1970's. The property is in dire need of redevelopment. Due to the very poor condition of the building and the extensive renovations needed, redevelopment is not financially feasible unless public assistance is provided. Proposed assistance would be a 25-year redevelopment TIF District which would capture a portion of the property taxes paid on the property to reimburse the developer for certain qualifying redevelopment costs. The City used this same tool for the State Theatre and Cornerstone Commons. Plans call for the building to be redeveloped as an upscale hotel with 20 to 24 rooms. Improvements to the building would include the addition of an elevator, a new roof, new windows, exterior tuck -pointing and a complete rebuilding of the interior 2nd and 3rd floors. At the public hearing, staff will provide detailed information on the project and the proposed TIF district. For your review, the following is included in your Council packet: 1. Tax increment financing district (TIF) plan 2. Resolution establishing TIF District 4-22, a redevelopment TIF district 3. Resolution authorizing inter -fund loan The EDA Board has reviewed the proposed TIF District plan and is recommending its approval by the City Council. If you have any questions or need additional information, please give me a call anytime at 234-4223. BOARD ACTION REQUESTED: 1. Approval of resolution authorizing modification of the Development program for Development District No. 4 and the establishment of Tax Increment Financing District 4-22. 2. Approval of Inter -fund Loan resolution. Fiscal Impact: $ 0.00 Funding Source: N/A FTE Impact: 0.00 Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: Adoption Date: December 14, 2021 City of Hutchinson, McLeod County, Minnesota MODIFICATION TO THE DEVELOPMENT PROGRAM Development District No. 4 Tax Increment Financing (TIF) Plan Establishment of Tax Increment Financing District No. 4-22 (a redevelopment district) g5EHLERS PUBLIC FINANCE ADVISORS Prepared by: Ehlers 3060 Centre Pointe Drive Roseville, Minnesota 55113 BUILDING COMMUNITIES. IT'S WHAT WE DO. Modification to the Development Program for Development District No. 4 1 FOREWORD 1 Tax Increment Financing Plan for Tax Increment Financing District No. 4-222 FOREWORD 2 STATUTORY AUTHORITY 2 STATEMENT OF OBJECTIVES 2 DEVELOPMENT PROGRAM OVERVIEW 3 DESCRIPTION OF PROPERTY IN THE DISTRICT AND PROPERTY TO BE ACQUIRED 3 DISTRICT CLASSIFICATION 4 DURATION & FIRST YEAR OF DISTRICT'S TAX INCREMENT 4 ORIGINAL TAX CAPACITY, TAX RATE & ESTIMATED CAPTURED NET TAX CAPACITY VALUE/INCREMENT & NOTIFICATION OF PRIOR PLANNED IMPROVEMENTS 5 SOURCES OF REVENUE/BONDS TO BE ISSUED 6 USES OF FUNDS 7 ESTIMATED IMPACT ON OTHER TAXING JURISDICTIONS 8 SUPPORTING DOCUMENTATION 10 DISTRICT ADMINISTRATION 11 Appendix A: Project Description 12 Appendix B: Map of Development District No. 4 and the TIF District 13 Appendix C: Estimated Cash Flow for the District 14 Appendix D: Findings Including But/For Qualifications 15 Appendix E: Redevelopment Qualifications for the District 18 Modification to the Development Program for Development District No. 4 FOREWORD The following text represents a Modification to the Development Program for Development District No. 4. This modification represents a continuation of the goals and objectives set forth in the Development Program for Development District No. 4. Generally, the substantive changes include the establishment of Tax Increment Financing District No. 4-22. For further information, a review of the Development Program for Development District No. 4, is recommended. It is available from the City Administrator at the City of Hutchinson. Other relevant information is contained in the Tax Increment Financing Plans for the Tax Increment Financing Districts located within Development District No. 4. City of Hutchinson Tax Increment Financing District No. 4-22 Tax Increment Financing Plan for Tax Increment Financing District No. 4-22 FOREWORD The City of Hutchinson (the "City"), staff and consultants have prepared the following information to expedite the Establishment of Tax Increment Financing District No. 4-22 (the "District"), a redevelopment tax increment financing district, located in Development District No. 4. STATUTORY AUTHORITY Within the City, there exist areas where public involvement is necessary to cause development or redevelopment to occur. To this end, the City has certain statutory powers pursuant to Minnesota Statutes ("M.S."), Sections 469.724 - 469.733, inclusive, as amended, and M.S., Sections 469.774 to 469.7794, inclusive, as amended (the "Tax Increment Financing Act" or "TIF Act"), to assist in financing public costs related to this project. This section contains the Tax Increment Financing Plan (the "TIF Plan") for the District. Other relevant information is contained in the Modification to the Development Program for Development District No. 4. STATEMENT OF OBJECTIVES The District currently consists of one (1) parcel of land and adjacent roads and internal rights -of -way. The District is being created to facilitate the redevelopment of the Jorgensen Hotel Site in the City. Further information regarding the project can be found in Appendix A. The City has not entered into an agreement or designated a developer at the time of preparation of this TIF Plan, but development is likely to occur in Spring of 2022. This TIF Plan is expected to achieve many of the objectives outlined in the Development Program for Development District No. 4. The activities contemplated in the Modification to the Development Program and the TIF Plan do not preclude the undertaking of other qualified development or redevelopment activities. These activities are anticipated to occur over the life of Development District No. 4 and the District. City of Hutchinson Tax Increment Financing District No. 4-22 2 DEVELOPMENT PROGRAM OVERVIEW Pursuant to the Development Program and authorizing state statutes, the City is authorized to undertake the following activities in the District: 1. Property to be Acquired - Selected property located within the District may be acquired by the City and is further described in this TIF Plan. 2. Relocation - Relocation services, to the extent required by law, are available pursuant to M.S., Chapter 117 and other relevant state and federal laws. 3. Upon approval of a developer's plan relating to the project and completion of the necessary legal requirements, the City may sell to a developer selected properties that it may acquire within the District or may lease land or facilities to a developer. 4. The City may perform or provide for some or all necessary acquisition, construction, relocation, demolition, and required utilities and public street work within the District. DESCRIPTION OF PROPERTY IN THE DISTRICT AND PROPERTY TO BE ACQUIRED The District encompasses all property and adjacent roads rights -of -way and abutting roadways identified by the parcels listed below. Please also see the map in Appendix B for further information on the location of the District. The City and/or EDA may acquire any parcel within the District including interior and adjacent street rights of way. Any properties identified for acquisition will be acquired by the City and/or EDA 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 for site assembly, site improvements, clearance and/or development to accomplish the uses and objectives set forth in this plan. The City and/or EDA may acquire property by gift, dedication, condemnation or direct purchase from willing sellers in order to achieve the objectives of this TIF Plan. City of Hutchinson Tax Increment Financing District No. 4-22 3 Such acquisitions will be undertaken only when there is assurance of funding to finance the acquisition and related costs. DISTRICT CLASSIFICATION The City, in determining the need to create a tax increment financing district in accordance with M.S., Sections 469.774 to 469.7794, as amended, inclusive, finds that the District, to be established, is a redevelopment district pursuant to M.S., Section 469.774, Subd. 10(a)(1). • The District is a redevelopment district consisting of one (1) parcel. • An inventory shows that parcels consisting of more than 70 percent of the area in the District are occupied by buildings, streets, utilities, paved or gravel parking lots or other similar structures. • An inspection of the buildings located within the District finds that more than 50 percent of the buildings are structurally substandard as defined in the TIF Act. (See Appendix E). Pursuant to M.S., Section 469.776, Subd. 7, the District does not contain any parcel or part of a parcel that qualified under the provisions of M.S., Sections 273.111, 273.112, or 273.114 or Chapter 473H for taxes payable in any of the five calendar years before the filing of the request for certification of the District. DURATION & FIRST YEAR OF DISTRICT'S TAX INCREMENT Pursuant to M.S., Section 469.775, Subd. 1, and Section 469.776, Subd. 1, the duration and first year of tax increment of the District must be indicated within the TIF Plan. Pursuant to M.S., Section 469.776, Subd lb., the duration of the District will be 25 years after receipt of the first increment by the City (a total of 26 years of tax increment). The City elects to receive the first tax increment in 2025, which is no later than four years following the year of approval of the District. Thus, it is estimated that the District, including any modifications of the TIF Plan for subsequent phases or other changes, would terminate after 2050, or when the TIF Plan is satisfied. The City reserves the right to decertify the District prior to the legally required date. City of Hutchinson Tax Increment Financing District No. 4-22 4 ORIGINAL TAX CAPACITY, TAX RATE & ESTIMATED CAPTURED NET TAX CAPACITY VALUE/INCREMENT & NOTIFICATION OF PRIOR PLANNED IMPROVEMENTS Pursuant to M.S., Section 469.774, Subd. 7 and M.S., Section 469.777, Subd. 1, the Original Net Tax Capacity (ONTC) as certified for the District will be based on the market values placed on the property by the assessor in 2021 for taxes payable 2022. Pursuant to M.S., Section 469.777, Subds. 1 and 2, the County Auditor shall certify in each year (beginning in the payment year 2025) the amount by which the original value has increased or decreased as a result of: 1. Change in tax exempt status of property; 2. Reduction or enlargement of the geographic boundaries of the district; 3. Change due to adjustments, negotiated or court -ordered abatements; 4. Change in the use of the property and classification; 5. Change in state law governing class rates; or 6. Change in previously issued building permits. In any year in which the current Net Tax Capacity (NTC) value of the District declines below the ONTC, no value will be captured and no tax increment will be payable to the City. The original local tax rate for the District will be the local tax rate for taxes payable 2021, assuming the request for certification is made before June 30, 2022. The ONTC and the Original Local Tax Rate for the District appear in the table below. Pursuant to M.S., Section 469.774 Subd. 4 and M.S., Section 469.777, Subd. 1, 2, and 4, the estimated Captured Net Tax Capacity (CTC) of the District, within Development District No. 4, upon completion of the projects within the District, 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 2025. The Project Tax Capacity (PTC) listed is an estimate of values when the projects within the District are completed. City of Hutchinson Tax Increment Financing District No. 4-22 5 Project estimated Tax Capacity upon completion 75,736 Original estimated Net Tax Capacity 10,668 Fiscal Disparities X u Estimated Captured Tax Capacity 65,068 Original Local Tax Rate 159.5420 % Pay 2021 Estimated Annual Tax Increment $103,811 Percent Retainted by the City 100% Note: Tax capacity includes a 3.0% inflation factor for the duration of the District. The tax capacity included in this chart is the estimated tax capacity of the District in year 25. The tax capacity of the District in year one is estimated to be $36,172. Pursuant to M.S., Section 469.177, Subd. 4, the City shall, after a due and diligent search, accompany its request for certification to the County Auditor or its notice of the District enlargement pursuant to M.S., Section 469.175, Subd. 4, with a listing of all properties within the District or area of enlargement for which building permits have been issued during the eighteen (18) months immediately preceding approval of the TIF Plan by the municipality pursuant to M.S., Section 469.175, Subd. 3. The County Auditor shall increase the original net tax capacity of the District by the net tax capacity of improvements for which a building permit was issued. The City has reviewed the area to be included in the District and found no parcels for which building permits have been issued during the 18 months immediately preceding approval of the TIF Plan by the City. SOURCES OF REVENUE/BONDS TO BE ISSUED The total estimated tax increment revenues for the District are shown in the table below: Tax Increment Interest TOTAL $ 1,800,000 180,000 $1,980,000 The costs outlined in the Uses of Funds will be financed primarily through the annual collection of tax increments. The City reserves the right to incur bonds or other indebtedness as a result of the TIF Plan. As presently proposed, the projects within the District will be financed by pay-as-you-go notes and interfund loans. Any refunding amounts will be deemed a budgeted cost without a formal TIF Plan Modification. This provision does not obligate the City of Hutchinson Tax Increment Financing District No. 4-22 6 City to incur debt. The City will issue bonds or incur other debt only upon the determination that such action is in the best interest of the City. The City may issue bonds (as defined in the TIF Act) secured in whole or in part with tax increments from the District in a maximum principal amount of $1,280,000. Such bonds may be in the form of pay-as-you-go notes, revenue bonds or notes, general obligation bonds, or interfund loans. This estimate of total bonded indebtedness is a cumulative statement of authority under this TIF Plan as of the date of approval. USES OF FUNDS Currently under consideration for the District is a proposal to facilitate the redevelopment of the Jorgensen Hotel Site. The City has determined that it will be necessary to provide assistance to the project for certain District costs, as described. The City has studied the feasibility of the development or redevelopment of property in and around the District. To facilitate the establishment and development or redevelopment of the District, this TIF Plan authorizes the use of tax increment financing to pay for the cost of certain eligible expenses. The estimate of public costs and uses of funds associated with the District is outlined in the following table. Land/Building Acquisition $ - Site Improvements/Preparation 1,100,000 Affordable Housing - Utilities - Other Qualifying Improvements - Administrative Costs (up to 10%) 180,000 PROJECT COSTS TOTAL $1,280,000 Interest 700,000 PROJECT AND INTEREST COSTS TOTAL $1,980,000 The total project cost, including financing costs (interest) listed in the table above does not exceed the total projected tax increments for the District as shown in the Sources of Revenue section. Estimated costs associated with the District are subject to change among categories without a modification to this TIF Plan. The cost of all activities to be considered for tax increment financing will not exceed, without formal modification, the budget above pursuant to the applicable statutory City of Hutchinson Tax Increment Financing District No. 4-22 7 requirements. Pursuant to M.S., Section 469.7763, Subd. 2, no more than 25 percent of the tax increment paid by property within the District will be spent on activities related to development or redevelopment outside of the District but within the boundaries of Development District No. 4, (including administrative costs, which are considered to be spent outside of the District) subject to the limitations as described in this TIF Plan. ESTIMATED IMPACT ON OTHER TAXING JURISDICTIONS The estimated impact on other taxing jurisdictions assumes that the redevelopment contemplated by the TIF Plan would occur without the creation of the District. However, the City has determined that such development or redevelopment would not occur "but for" tax increment financing and that, therefore, the fiscal impact on other taxing jurisdictions is $0. The estimated fiscal impact of the District would be as follows if the "but for" test was not met: MCCleod County 42,494,660 City of Hutchinson 11,945,125 ISD No. 423 18,390,316 (Hutchinson) 65,068 65,068 65,068 0.1531% 0.5447% 0.3538% Impact on Tax Rates Pay 2021 Percent Potentla Entity Extension CTC - ate Total - MCCleod County o 58.5570 /0 0 36.70 /0 65,068 $ 38,102 City of Hutchinson 63.8820% 40.04% 65,068 41,567 ISD No. 423 33.5440% 21.03% 65,068 21,826 (Hutchinson) Other 3.5590% 2.23% 65,068 2,316 159.5420% 100.00% $103,811 City of Hutchinson Tax Increment Financing District No. 4-22 8 The estimates listed above display the captured tax capacity when all construction is completed. The tax rate used for calculations is the Pay 2021 rate, which is the most current rate available at the time of the Plan preparation. The total net capacity for the entities listed above are based on Pay 2021 figures. The District will be certified under the Pay 2022 rates, which were unavailable at the time this TIF Plan was prepared. Pursuant to M.S. Section 469.775 Subd. 2(b): (1) Estimate of total tax increment. It is estimated that the total amount of tax increment that will be generated over the life of the District is $1,800,000; (2) Probable impact of the District on city arovided services and ability to issue debt. An impact of the District on police protection is expected. With any addition of new residents or businesses, police calls for service will be increased. New developments add an increase in traffic, and additional overall demands to the call load. The City does not expect that the proposed development, in and of itself, will necessitate new capital investment in vehicles or facilities. The probable impact of the District on fire protection is not expected to be significant. Typically new buildings generate few calls, if any, and are of superior construction. The existing building, which will be renovated, has no fire protection system. The proposed redevelopment of the building will feature a water sprinkler system that will enhance fire safety. The City does not expect that the proposed development, in and of itself, will necessitate new capital investment in vehicles or facilities. The impact of the District on public infrastructure is expected to be minimal. The development is not expected to significantly impact any traffic movements in the area. The current infrastructure for sanitary sewer, storm sewer and water will be able to handle the additional volume generated from the proposed development. Based on the development plans, there are no additional costs associated with street maintenance, sweeping, plowing, lighting and sidewalks. The development in the District is expected to contribute an estimated $44,550 in sanitary sewer (SAC) and water (WAC) connection fees. City of Hutchinson Tax Increment Financing District No. 4-22 9 The probable impact of any District general obligation tax increment bonds on the ability to issue debt for general fund purposes is expected to be minimal. It is not anticipated that there will be any general obligation debt issued in relation to this project, therefore there will be no impact on the City's ability to issue future debt or on the City's debt limit. (3) Estimated amount of tax increment attributable to school district levies. It is estimated that the amount of tax increments over the life of the District that would be attributable to school district levies, assuming the school district's share of the total local tax rate for all taxing jurisdictions remained the same, is $378,453; (4) Estimated amount of tax increment attributable to county levies. It is estimated that the amount of tax increments over the life of the District that would be attributable to county levies, assuming the county's share of the total local tax rate for all taxing jurisdictions remained the same, is $660,657; (5) Additional information requested by the county or school district. The City is not aware of any standard questions in a county or school district written policy regarding tax increment districts and impact on county or school district services. The county or school district must request additional information pursuant to M.S. Section 469.775 Subd. 2(b) within 15 days after receipt of the tax increment financing plan. No requests for additional information from the county or school district regarding the proposed development for the District have been received. SUPPORTING DOCUMENTATION Pursuant to M.S. Section 469.175, Subd. 1 (a), clause 7 the TIF Plan must contain identification and description of studies and analyses used to make the determination set forth in M.S. Section 469.775, Subd. 3, clause (b)(2) and the findings are required in the resolution approving the District. (i) In making said determination, reliance has been placed upon (1) written representation made by the developer to such effects; and (2) City staff awareness of the feasibility of developing the project site within the District, which is further outlined in the city council resolution approving the establishment of the TIF District and Appendix D. City of Hutchinson Tax Increment Financing District No. 4-22 10 (ii)A comparative analysis of estimated market value both with and without establishment of the TIF District and the use of tax increments has been performed. Such analysis is included with the cashf low in Appendix C and indicates that the increase in estimated market value of the proposed development (less the indicated subtractions) exceeds the estimated market value of the site absent the establishment of the TIF District and the use of tax increments. DISTRICT ADMINISTRATION Administration of the District will be handled by the City Administrator. City of Hutchinson Tax Increment Financing District No. 4-22 11 Appendix A: Project Description The Jorgensen Hotel building, located on Main Street South, was originally constructed in 1916. The first floor has been renovated and is being used for commercial office space. The basement, second and third floors are in poor condition, needing extensive renovation in order to be made into usable space. In addition an elevator and a new roof add to the required renovation. The proposed project includes redeveloping the site as an upscale, 40-room hotel. The existing first floor office spaces would be retained, the top two floors renovated to create 10 hotel rooms on each level and, if it can be accomplished structurally, two additional floors will be added to the structure. This will create a 5-story building in downtown Hutchinson and bring new life to a structure that sorely needs it. A developer is exploring the feasibility of purchasing the property and has requested tax increment assistance through a pay as you go TIF Note. Due to the very extensive renovations needed, the project would not be financially feasible without public assistance. City of Hutchinson Tax Increment Financing District No. 4-22 12 Appendix B: Map of Development District No. 4 and the TIF District City of Hutchinson Tax Increment Financing District No. 4-22 13 L402§ ME am WE EM II■111■+�"■ 1 :IIIIII 11 Min ELM■0111111M ME —° =2 ME !■ IIII■1111111111 :1111�:. �i E 01 ■= == on M =E No Tax Increment Financing District No 4-22 IIU z Development District No. 4 IN IN 0 City of Hutchinson 1 ��McLeod County, Minnesota I Development Districts r--j DEVELOPMENT DISTRICT NO. 4 ■ nnnnu■Poll WE f � _- ■IIIIII � �� =--��11111\• jam' 1 ;•.IIIIII■ �� = uun■ /IIIIII■�i b� 1LIIIIIIIIII � on _'Illlllllllls �i ��1� � � o (IIIIII/rr11 — Appendix C: Estimated Cash Flow for the District City of Hutchinson Tax Increment Financing District No. 4-22 14 10/19/2021 Jorgensen Hotel Redevelopemnt City of Hutchinson, MIN Office Space and 50 Hotel Rooms th C Y 1 C D C DistrictType: Redevelopment Tax Rates District Name/Number: County District #: Exempt Class Rate (Exempt) 0.00 % First Year Construction or Inflation on Value 2023 Commercial Industrial Preferred Class Rate (C/l Pref.) Existing District - Specify No. Years Remaining First $150,000 1.50 % Inflation Rate - Every Year. 3.00% Over $150,000 2.00% Interest Rate: 4.00 % Commercial Industrial Class Rate (C/1) 2.00 % Present Value Date: 1-Feb-23 Rental Housing Class Rate (Rental) 1.25 % First Period Ending 1-Aug-23 Affordable Rental Housing Class Rate (Aff. Rental) Tax Year District was Certified: Pay 2021 First $174,000 0.75 % Cashflow Assumes First Tax Increment For Development: 2025 Over $174,000 0.25 % Years of Tax Increment 26 Non -Homestead Residential (Nan-H Res. 1 Unit) Assumes Last Year of Tax Increment 2050 First $500,000 1.00 % Fiscal Disparities Election [Outside (A), Inside (B), or NA] NA Over $500,000 1.25 % Incremental or Total Fiscal Disparities Incremental Homestead Residential Class Rate (Hmstd. Res.) Fiscal Disparities Contribution Ratio 0.0000% Pay 2021 First $500,000 1.00 % Fiscal Disparities Metro -Wide Tax Rate 0.0000% Pay 2021 Over $500,000 1.25 % Maximum/Frozen Local Tax Rate: 159.542% Pay 2021 Agricultural Non -Homestead 1.00 % Current Local Tax Rate: (Use lesser of Current or Max.) 159.542% Pay 2021 State-wide Tax Rate (Comm./Ind. only used for total taxes) 35.9780% Pay 2021 Market Value Tax Rate (Used for total taxes) 0.19404% Pay 2021 BASE VALUE •• •(Cl-rigi -1 ax Capacity)na Building Total Percentage Tax Year Property Current Class After Land Market Market Of Value Used Original Original Tax Original After Conversion Areal lap ID PID Owner Address Market Value Value Value for District Market Value Market Value Class Tax Capacity Conversion Ong. Tax Cap. Phase 1 23.050.0535 2 Main street south 570,900 100 % 570,900 Pay 2021 C/1 Pref. 10,668 C/l Pref. 10,668 1 0 0 570,900 570,900 10,668 10,668 Note: 1. Base values are for pay 2021 based upon McLeod County website 8.17.21. 2. Located in SD # 423. Prepared by Ehlers 10/19/2021 Jorgensen Hotel Redevelopemnt City of Hutchinson, MN Office Space and 50 Hotel Rooms g�*EHLERS - - �,r "-: I . L. . PROJECT•• • Estimated Taxable Total Taxable Property Percentage Percentage Percentage Percentage First Year Market Value Market Value Total Market Tax Project Project Tax Completed Completed Completed Completed Full Taxes Area/Phase New Use Per Sq. Ft./Unit Per Sq. Ft./Unit Sq. Ft./Units Value Class Tax Capacity Capacity/Unit 2023 2024 2025 2026 Payable 1 Retail 42,620 42,620 43 1.846,100 C/I Pref. 36,172 835 100% 100% 100% 100% 2025 TOTAL 1,846,100 36,172 Subtotal Residential 0 0 0 Subtotal Commercial/Ind. 43 1,846,100 36,172 Note: 1. Market values are based upon McCleod County Assessor estimate 8/2021. CALCULATIONSTAX ota isca oca oca isca tale-wi a ar et Tax Disparities Tax Property Disparities Property Value Total Taxes Per New Use Ca aci[ Tax Capacity Capacity Taxes Taxes Taxes Taxes Taxes Sq. Ft./Unit Retail 36,172 0 36,172 57,710 0 12,474 3,398 73,581 1,698.74 Note: 1. Taxes and tax increment will vary significantly from year to year depending upon values, rates, state law, fiscal disparities and other factors which cannot be predicted. WHAT IS EXCLUDED FROM FOR ANALYSIS Total Property Taxes 73,581 Current Market Value- st. 570900 less State-wide Taxes (12,474) New Market Value - Est. 1,846:100 less Fiscal Disp. Adj. 0 Difference less Market Value Taxes (3,398) Present Value of Tax Increment less Base Value Taxes (17,020) Difference 337,581 Annual Gross TIF Value likely to occur without Tax Increment is less than: Prepared by Ehlers 10/19/2021 : EHLERS Jorgensen Hotel Redevelopemnt City of Hutchinson, MN Office Space and 50 Hotel Rooms of Tax Tax Disparities Tax Tax Gross Tax I Gross Tax Auditor Tax Increment Cashfim - Page 3 Net Tax Present I ENDING Tax Payment - - - - 02/01/24 - - - - 08/01/24 - - - - 02/01/25 100% 36,172 (10,668) - 25,504 159.542% 40,690 20,345 (73) (2027) 18,244 16,525 0.5 2025 08/0125 20,345 (73) (2:027) 18,244 32,725 1 2025 0210126 100% 37,257 (10,668) - 26,589 159.542% 42,421 21,210 (76) (2,113) 19,021 49,284 1.5 2026 08/0126 21,210 (76) (2,113) 19,021 65,518 2 2026 0210127 100% 38,375 (10,668) - 27,707 159.542% 44,204 22,102 (80) (2,202) 19,820 82,102 2.5 2027 08/0127 22,102 (80) (2,202) 19,820 98,362 3 2027 0210128 100% 39,526 (10,668) - 28,858 159.542% 46,041 23,020 (83) (2,294) 20,644 114,965 3.5 2028 08/0128 23,020 (83) (2,294) 20,644 131,242 4 2028 02/0129 100% 40,712 (10,668) - 30,044 159.542% 47,933 23,966 (86) (2:388) 21,492 147:856 4.5 2029 08/0129 23,966 (96) (2,388) 21,492 164,145 5 2029 02/01/30 100% 41,933 (10,668) - 31,265 159.542% 49,881 24,941 (90) (2,485) 22,366 180,763 5.5 2030 08/01/30 24,941 (90) (2485) 22,366 197,055 6 2030 02/01/31 100% 43,191 (10,668) - 32,523 159.542% 51,888 25,944 (93) (2:585) 23,266 213,670 6.5 2031 08/01/31 25,944 (93) (2,585) 23,266 229,960 7 2031 02/01/32 100°5 44,487 (10,668) - 33,819 159.542°5 53,956 26,978 (97) (2,688) 24,193 246,567 7.5 2032 OB/01/32 26,978 (97) (2,688) 24,193 262,848 8 2032 02/01/33 100% 45,822 (10,668) - 35,154 159.542% 56,085 28,042 (101) (2:794) 25,147 279:439 8.5 2033 O8/01/33 28,042 (101) (2,794) 25,147 295,705 9 2033 02/01/34 100°5 47,196 (10,668) - 36,528 159.542°5 58,278 29,139 (105) (2,903) 26,131 312,276 9.5 2034 O8/01/34 29,139 (105) (2,903) 26,131 328,522 10 2034 08/01/35 100% 48,612 (10,668) - 37,944 159.542% 60,537 30,268 (109) (3,016) 27,144 345,067 10.5 2035 OB/01/35 30,268 (109) (3,016) 27,144 361,287 11 2035 02/01/36 100% 50,071 (10,668) - 39,403 159.542% 62,864 31,432 (113) (3:132) 28,187 377,801 11.5 2036 08/01/36 31,432 (113) (3,132) 28,187 393,991 12 2036 02/01/37 100°5 51,573 (10,668) - 40,905 159.542°5 65,260 32,630 (117) (3,251) 29,261 410,468 12.5 2037 OB/01/37 32,630 (117) (3251) 29,261 426,623 13 2037 02/01/38 100% 53,120 (10,668) - 42,452 159.542% 67,728 33,864 (122) (3:374) 30,368 443,059 13.5 2038 08/01/38 33,864 (122) (3,374) 30,368 459,173 14 2038 02/01/39 100% 54,713 (10,668) - 44,045 159.542% 70,271 35,135 (126) (3,501) 31,508 475,565 14.5 2039 0 1139 35,135 (126) (3,501) 31,508 491:635 15 2039 02/101/40 100% 56,355 (10,668) - 45,687 159.542% 72,890 36,445 (131) (3,631) 32,682 507,977 15.5 2040 08/01/40 36," (131) (3,631) 32,682 523,998 16 2041 02/01/41 100% 58,045 (10,668) - 47,377 159.542% 75,587 37,793 (136) (3,766) 33,892 540,287 16.5 2041 08/01/41 37,793 (136) (3,766) 33,892 556,257 17 2041 02/01/42 100% 59,787 (10,668) - 49,119 159.542% 78,365 39,183 (141) (3:904) 35,137 572,488 17.5 2042 08/01/42 39,183 (141) (3,904) 35,137 588,402 18 2042 02/01/43 100% 61,580 (10,668) - 50,912 159.542% 81,227 40,613 (146) (4,047) 36,420 604,573 18.5 2043 08/01/43 40,613 (146) (4,047) 36,420 620,427 19 2043 02/01/44 100%63,428 (10,668) - 52,760 159.542%84,174 42,087 (152) (4,194) 37,742 636,534 19.5 2044 08/01/44 42,087 (152) (4,194) 37,742 652,325 20 2044 02/01/45 100% 65,331 (10,668) - 54,663 159.542% 87,210 43,605 (157) (4,345) 39,103 668,365 20.5 2045 0M1/45 43,605 (157) (4,345) 39,103 684,090 21 2045 02/01/46 100% 67,291 (10,668) - 56,623 159.542% 90,337 45,168 (163) (4,501) 40,505 700,060 21.5 2046 08/01/46 45,168 (163) (4,501) 40,505 715,717 22 201 02/01/47 100% 69,309 (10,668) - 58,641 159.542% 93,558 46,779 (168) (4,661) 40949 731,614 22.5 2047 08/01/47 46,779 (168) (4,661) 41,949 747:199 23 2047 02/01/48 100% 71,389 (10,668) - 60,721 159.542% 96,875 48,437 (174) (4,826) 43,437 763,021 23.5 2048 08/01/48 48,437 (174) (4,126) 43,437 778,532 24 201 12101/49 100% 73,530 (10,668) - 62,862 159.542% 100,292 50,146 (181) (4,997) 44,969 794,276 24.5 2049 08/01/49 50,146 (181) (4,997) 44,969 809,711 25 201 02/011 100% 75,736 (10,668) - 65,068 159.542% 103,811 51,906 (187) (5,172) 46,547 8295374 25.5 2050 08/01/50 51,906 (187) (5,172) 46,547 840,730 26 2050 02/01/51 Total �� 1,782,360 (6,416) (177,594, 1,598349 present Value From 02/012023 Present Value Rate ==1111PA 937,519 (3,375) (93,414) 840:730 P.ep by Ehlers a �. Inc - Es ales Ony -Emma-Re..Irp-.UIRTIF Oi�MF4R1Cesh flo TIF Run Fisral Implxati.A¢ Appendix D: Findings Including But/For Qualifications The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan (TIF Plan) for Tax Increment Financing District No. 4-22 (the "District"), as required pursuant to Minnesota Statutes, Section 469.175, Subdivision 3 are as follows: L Finding that Tax Increment Financing District No. 4-22 is a redevelopment district as defined in M.S., Section 469.774, Subd. 70. The District consists of one (1) parcel and vacant right-of-way, with plans to redevelop the area for the redevelopment of the Jorgensen Hotel Site. The parcel consists of 70 percent of the area of the District is occupied by buildings, streets, utilities, paved or gravel parking lots or other similar structures and the building in the District, not including outbuildings, is structurally substandard to a degree requiring substantial renovation. (See Appendix E of the TIF Plan.) 2. Finding that the proposed development, in the opinion of the City Council, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future 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 Tax Increment Financing District No. 4-22 permitted by the TIF Plan. The proposed development, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future: This finding is supported by the fact that the redevelopment proposed in the TIF Plan meets the City's objectives for redevelopment. Due to the high cost of redevelopment on the parcel currently occupied by the substandard building and the cost of financing the proposed improvements, this project is feasible only through assistance, in part, from tax increment financing. The developer was asked for and provided a letter and business subsidy application as justification that the developer would not have gone forward without tax increment assistance. City of Hutchinson Tax Increment Financing District No. 4-22 15 The increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the District permitted by the TIF Plan: This finding is justified on the grounds that the cost of site and public improvements add to the total redevelopment cost. Historically, construction costs, site and public improvements costs in this area have made redevelopment infeasible without tax increment assistance. The City reasonably determines that no other redevelopment of similar scope is anticipated on this site without substantially similar assistance being provided to the development. Therefore, the City concludes as follows: a. The City's estimate of the amount by which the market value of the entire District will increase without the use of tax increment financing is $0. b. If the proposed development occurs, the total increase in market value will be $1,275,200. c. The present value of tax increments from the District for the maximum duration of the district permitted by the TIF Plan is estimated to be $937,519. Cl. Even if some development other than the proposed development were to occur, the Council finds that no alternative would occur that would produce a market value increase greater than $337,681 (the amount in clause b less the amount in clause c) without tax increment assistance. 3. Finding that the TIF Plan for the District conforms to the general plan for the development or redevelopment of the municipality as a whole. The Planning Commission reviewed the TIF Plan on 11/16/2021 and found that the TIF Plan conforms to the general development plan of the City. OR The City Council reviewed the TIF Plan and found that the TIF Plan conforms to the general development plan of the City. City of Hutchinson Tax Increment Financing District No. 4-22 M 4. Finding that the TIF Plan for Tax Increment Financing District No. 4-22 will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development or redevelopment of Development District No. 4 by private enterprise. The project to be assisted by the District will result in increased employment in the City and the State of Minnesota, the renovation of substandard properties, increased tax base of the State and add a high - quality development to the City. Through the implementation of the TIF Plan, EDA or the City will increase the availability of safe and decent hotel space in the City. City of Hutchinson Tax Increment Financing District No. 4-22 17 Appendix E: Redevelopment Qualifications for the District To be added to prior to the public hearing City of Hutchinson Tax Increment Financing District No. 4-22 18 Redevelopment Tax Increment Financing District Eligibility Study TIF District 4-22 "Jorgensen Hotel" 2 Main Street South Hutchinson, Minnesota . y _4& -} ` k t� s F i + � � y L Prepared By Miles R. Seppelt, EDA Director Kyle Dimler, Building Official October 5, 2021 I. Governing Statutory Language To be eligible for a Redevelopment Tax Increment Financing District, the area to be redeveloped must meet certain requirements as outlined in state statute. These are: Minnesota Statute 469.174 Subd. IO.Redevelopment district. Subd. 10 (a) "Redevelopment district" means a type of tax increment financing district consisting of a project, or portions of a project, within which the authority finds by resolution that one or more of the following conditions, reasonably distributed throughout the district, exists: (1) parcels consisting of 70 percent of the area of the district are occupied by buildings, streets, utilities, paved or gravel parking lots, or other similar structures and more than 50 percent of the buildings, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance; Subd. 10 (b) For purposes of this subdivision, "structurally substandard" shall mean containing defects in structural elements or a combination of deficiencies in essential utilities and facilities, light and ventilation, fire protection including adequate egress, layout and condition of interior partitions, or similar factors, which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance. Subd. 10 (c) A building is not structurally substandard if it is in compliance with the building code applicable to new buildings or could be modified to satisfy the building code at a cost of less than I5 percent of the cost of constructing a new structure of the same square footage and type on the site. The municipality may find that a building is not disqualified as structurally substandard under the preceding sentence on the basis of reasonably available evidence, such as the size, type, and age of the building, the average cost of plumbing, electrical, or structural repairs, or other similar reliable evidence. The municipality may not make such a determination without an interior inspection of the property, but need not have an independent, expert appraisal prepared of the cost of repair and rehabilitation of the building. An interior inspection of the property is not required, if the municipality finds that (1) the municipality or authority is unable to gain access to the property after using its best efforts to obtain permission from the party that owns or controls the property; and (2) the evidence otherwise supports a reasonable conclusion that the building is structurally substandard. Items of evidence that support such a conclusion include recent fire or police inspections, on -site property tax appraisals or housing inspections, exterior evidence of deterioration, or other similar reliable evidence. Written documentation of the findings and reasons why an interior inspection was not conducted must be made and retained under section 469.175, subdivision 3, clause (1). Failure of a building to be disqualified under the provisions of this paragraph is a necessary, but not a sufficient, condition to determining that the building is substandard. Subd. 10(e) For purposes of this subdivision, a parcel is not occupied by buildings, streets, utilities, paved or gravel parking lots, or other similar structures unless 15 percent of the area of the parcel contains buildings, streets, utilities, paved or gravel parking lots, or other similar structures. II. Study Area Figure 1— Aerial view of study area �h r l Proposed Redevelopment TIF District 4-22 would be composed of one oversize lot in downtown Hutchinson occupied by a structure commonly referred to at the 'Jorgensen Hotel,' originally built in 1916. Table 1— Identification of Study Area `Jorgensen Hotel' 2 Main Street South Block 1, Lot 8, EX S 2' OF E 36', SOUTH HALF OF HUTCHINSON Figure 2 — Map of Study Area WWMF41bftAAL 2 Main Street S EMcLeod 270500575 I � 230670010 230SO0530 230670020 III. Criterion 1 Minnesota Statute 469.174, Subd. 10 (a) (1) states: 'parcels consisting of 70 percent of the area of the district are occupied by buildings, streets, utilities, paved or gravel parking lots, or other similar structures... " Finding There is one parcel in the proposed Redevelopment TIF District. This one lot is occupied entirely by the Jorgensen Hotel building. 1 parcel / 1 occupied = 100% Since 100% of the parcels in the proposed Redevelopment TIF District are in fact occupied by buildings are parking lots as specified in statute, this criterion is satisfied. IV. Criterion 2 The second criterion that must be satisfied is that more than one-half of the buildings in the proposed redevelopment district must be found to be substandard based upon an internal inspection. The governing statutes state: Minnesota Statute 469.174, Subd 10. (a) (1) "...and more than 50 percent of the buildings, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance; " Finding There is one building within the proposed redevelopment area. One building has been determined to be substandard to a degree requiring substantial renovation or clearance. 1 building/ 1 sub -standard = 100% Since 100% of the buildings were found to be substandard, this criterion is satisfied. V. Criterion 3 The third criterion to be satisfied is that the cost to bring the existing structure up to current building code standards would be at least 15% of the cost to construct a new building of the same square footage and type: Minnesota Statute 469.174 Subd. 10 (b) For purposes of this subdivision, "structurally substandard" shall mean containing defects in structural elements or a combination of deficiencies in essential utilities and facilities, light and ventilation, fire protection including adequate egress, layout and condition of interior partitions, or similar factors, which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance. Subd. 10 (c) A building is not structurally substandard if it is in compliance with the building code applicable to new buildings or could be modified to satisfy the building code at a cost of less than 15 percent of the cost of constructing a new structure of the same square footage and type on the site. The municipality may find that a building is not disqualified as structurally substandard under the preceding sentence on the basis of reasonably available evidence, such as the size, type, and age of the building, the average cost of plumbing, electrical, or structural repairs, or other similar reliable evidence. The municipality may not make such a determination without an interior inspection of the property, but need not have an independent, expert appraisal prepared of the cost of repair and rehabilitation of the building. An interior inspection of the property is not required, if the municipality finds that (1) the municipality or authority is unable to gain access to the property after using its best efforts to obtain permission from the party that owns or controls the property; and (2) the evidence otherwise supports a reasonable conclusion that the building is structurally substandard. Items of evidence that support such a conclusion include recent fire or police inspections, on -site property tax appraisals or housing inspections, exterior evidence of deterioration, or other similar reliable evidence. Written documentation of the findings and reasons why an interior inspection was not conducted must be made and retained under section 469.175, subdivision 3, clause (1). Failure of a building to be disqualified under the provisions of this paragraph is a necessary, but not a sufficient, condition to determining that the building is substandard. Findings To document the findings required by Minnesota Statute 469.174, Subd 10. (1) (b) and (c), the City of Hutchinson's building official conducted an interior inspection of the 'Jorgensen Hotel' building on September 8, 2021. Building Code violations found include the following: 1. MN Building Code Section 903.2.8 requires an automatic sprinkler system to be installed throughout all buildings with a Group R fire area. For R-1 and R-2 occupancies, such as this structure, there is an exception for buildings where less than 4,500 square feet are R-1 and R- 2. This exception does not apply due to the building area of this structure so a fire sprinkler system is required throughout the upper 2 stories that have most recently been used as hotel and/or apartment occupancies. 2. MN Commercial Energy Code Table C402.1.3 requires Group R occupancy structures with "Mass" type exterior walls above grade to be provided with R-15.2 continuous insulation, which essential consists of sheet foam insulation in the exterior wall envelope assembly. I don't find any indication in the architectural analysis provided in 2002 or in renovation records since that the exterior walls comply with this requirement. 3. MN Commercial Energy Code Table C402.1.3 requires this type of structure to insulate below grade walls (e.g. foundation walls) with R-7.5 continuous insulation and there is no indication this exists or is complied with. 4. MN Commercial Energy Code Table C402.4 requires operable windows to provide a maximum U- factor of 0.43 which there is no indication that the existing windows on the upper 2 levels of the building comply with. 5. The City's file for this property includes an analysis provided by Claybaugh Preservation Architecture Inc. noting that: a. None of the existing stairs meet the MN Building Code requirements for rise or run; b. The existing fire escape at the end of the corridors are removed creating dead end corridors that do not comply with code requirements requiring renovation to provide a link connecting the building wings on the 2"d and 3rd levels so that one exist stair could serve both corridors; and c. The 2"d existing stair is required to be replaced with a new interior exit stair enclosure serving all 4 levels of the building and be 2-hour fire resistance rated. 6. MN Accessibility Code Section 1104.4 requires multi -level buildings to have at least on accessible route connecting each accessible story. I believe this would require an elevator to be installed. 3RD LEVEL 7. Ten windows are missing and the openings are covered with plywood, not meeting leakage and U-factor requirements for windows. 8. Remainder of windows do not appear to meet current MN Commercial Energy Code requirements for U-factor ratings. 9. All interior partitions removed leaving no occupiable sleeping or dwelling units. 10. Numerous structural concrete beams have no concrete cover over reinforcing steel and significant corrosion has taken place of exposed reinforcing steel. 11. Multiple roof drain and/or plumbing drain/vent pipes are broken or cut open and left with exposed rough openings. 12. Multiple holes exist in floor and ceiling layers leaving openings without protection of fire-resistant rated construction as required. 2ND LEVEL 13. Multiple windows are missing and the openings are covered with plywood, not meeting leakage and U-factor requirements for windows. 14. Remainder of windows do not appear to meet current MN Commercial Energy Code requirements for U-factor ratings. 15. All interior partitions removed leaving no occupiable sleeping or dwelling units. 16. Numerous structural concrete beams have no concrete cover over reinforcing steel and significant corrosion has taken place of exposed reinforcing steel. 17. Multiple roof drain and/or plumbing drain/vent pipes are broken or cut open and left with exposed rough openings. 18. Multiple holes exist in floor and ceiling layers leaving openings without protection of fire-resistant rated construction as required. OTHER ITEMS 19. Stairs connecting 2nd and 3`d level have had walls removed leaving no fire resistance rated protection for stair occupants from remainder of open 2nd and 3rd levels. 20. No lighting provided and no controls, per MN Commercial Energy Code, in place in 2nd or 3rd level. 21. No HVAC system or controls provided as required by MN Commercial Energy and MN Mechanical Codes. 22. No code compliant guards or handrails provided at either of the interior stairways connecting 2nd and 3rd levels. 23. Electrical distribution system components have been removed. 24. All plumbing fixtures have been removed. No required sanitation requirements provided. The Contegrity Group, a construction management firm based in Little Falls, Minnesota reviewed the building code deficiencies identified, conducted a physical inspection of the building and put together a cost estimate to correct the deficiencies identified. Their analysis can be found in Appendix "A" of this report. The estimated total cost to bring the existing structure up to current building code standards was determined to be about $2,266,977 The estimated cost for a building of the same square footage and type is about $6,320,160 $2,266,977 / $6,320,160 = 35.9% Since the total cost to renovate the existing building is far more than 15% of the cost to construct a new building of the same square footage and type, the 'Jorgensen Hotel' building does meet the statutory definition of substandard. Additionally, since there is only one building on the lot, 100% of the buildings have been determined to be substandard. This legal criterion therefore is met. VI. Criterion 4 Minnesota State Statute 469.174 Subd. 10(e) states: For purposes of this subdivision, a parcel is not occupied by buildings, streets, utilities, paved or gravel parking lots, or other similar structures unless 15 percent of the area of the parcel contains buildings, streets, utilities, paved orgravel parking lots, or other similar .structures. Finding The parcel in question covers one oversize lot in downtown Hutchinson with an area of 8,724 square feet. The total improved area (the building) is 8,724 square feet. 8,724 sf lot / 8,724 sf improved = 100 % 100 % of the parcel is 'improved,' therefore this criterion is satisfied. VII. Conclusion All four statutory criteria are satisfied as summarized in Table 2, below. Finding Reference Table 2 — Summary of Findings Criterion Finding 1 M.S. 469.174 Parcels consisting of 70% of the area of 100% of the parcels in the area of the Subd. 10 (a) (1) the district are occupied proposed district are occupied 2 M.S. 469.174 More than 50% of the buildings, not 100% of the buildings in the proposed Subd 10 (a) (1) including outbuildings, are found to be district were determined t be substandard substandard - 3 M.S. 469.174 Cost to renovate is at least 15% of the Renovation costs are estimated to be at Subd. 10 (c) cost of a new building of the same least 35.9% of the cost of a new building square footage and type 4 M.S. 469.174 15 percent of the area of the parcel 100% of the area of the parcel is occupied Subd. 10 (e) contains buildings by a building The conclusion is that the area of this study does meet the eligibility requirements for designation as a Redevelopment Tax Increment Financing District. Any questions regarding this eligibility study can be directed to Miles R. Seppelt, Economic Development Director, City of Hutchinson at (320) 234-4223 or mseppelt@ci.hutchinson.mn.us Appendix "A" Integrity Group Cost Estimates Appendix A Page 1 contegritygroup 6n,puCbt IYn>,e�,"t CITY OF HUTCHISON - ECONOMIC DEVELOPMENT PROJECT ESTIMATED COSTS TO CORRECT IDENTIFIED CODE DEFICIENCIES FOR THE JORGENSEN HOTEL BUILDING' • - Per Attached 0tv of Hutchison EDC Provided List Deficency #1- Add Fire Sprinkler on Upper Two Floors (7,S24 SF/Flr) UO ANTRY u M UNrr cost TOrAtS Conned to water service in street with 4" main 40 LF $150.00 $6,000.00 Cut and remove pavement for water service 480 SF $5.50 $2,640. Patch sidewalk & street pavements 480 SF $20.00 $9,600.00 Cut Into basement wall to stub in pipe 16 MH $100.00 $1,60D.00 Install Sprinkler System 15,048 SF $3.00 $45,144.00 Subtotal $64,984.00 Deficency #2 - Add R-15,2 Construction to Exterior Walls c"AV. M Rim UNIT COST TOTwi3 (2nd & 3rd Floors - assume inside dimensions are 63'x 130' x 9') Frame 3-5/8" stud walls with 3-1/2" high density fiberglass batts & 5/8" gyp 1 side 6,948 SF $8.60 $59,752.80 $O.OD Subtotal $59,7S270. Deficency #B - Add R 7.5 Construction to Basement Walls UANMY WIA UNR COST TOTALS (dimensions are 63'x 130' x 9'-6" Furr out walls full height with 2" studs, 2" rigid insulaton & 5/8" gyp 3,667 SF $7.00 $25,669.00 $0.00 Subtotal $25,669. Deficency #4 - Replace Windows on Upper Two Floors O:fANTmt U;r t UNIT COs-i TOTALS 3'-10" x 5'-0" Windows 8 EA $1,600.00 $12,800.00 4'-0" x 6'-W Windows 3B EA $1,950.00 $74,10D.00 4'-6" x 6'-0" Windows 8 EA $2,100.00 $16,800.0D 4'-10" x 6'-0" Windows 30 EA $2,300.00 $69,000.00 Includes demo of existing & rough -in for new $0.00 Subtotal $172,700. Deficency #5 - Correct Internal Stair Issues - Two New Internal Stairs QUANTrTY u M UNtr COST TOTALS - Build Connector Between N & S Wings STAIRS. Demo Existing Stair Structures 8 Fits $600.00 $4,800.00 Demo Existing Guardrails 72 LF $25.00 $1,BW.00 Enlarge Stair Openings (approx 24 SF each) 144 SF $12.00 $1,728.00 Reinforce floor structure at openings 120 LF $65.00 $7,11W.00 Build 2 HR Shaft Walls Around Stairs (26 If x 40 ft) 2,090 SF $9.50 $19,760.00 Install 90 min HM Doors & Frames at Each Floor 8 EA $2,200.00 $17,600.00 New Stair Flights 144 Risen $380.00 $S4,720.00 New Stair Handrails 224 LF $65.00 $14,560.00 Labor for Stair Install 8 Fits $2,150.00 $17,200.00 Paint Steel Stairs & Rails 8 Fits $1,000.00 $8,000.00 CONNECTOR. Approx 20 ft long by 8 ft wide x 10 ft tall for each floor Build connecting structure on the North ends of floors two and three 320 SF $250.00 $80,000.00 Subtotal 1$227,%8.001 Deficency #6 - Add Passenger Elevator (internal) UAl"M U M UNIT COST TOTALS Assume 12 ft x 14 ft opening for pit Sawcut Floor 52 LF $7.50 $390.00 Remove Conc Floor (include trench for sump pipig) 180 SF $6.50 $1,170.00 Excavate Pit 30 CY $120.00 $3,600,00 Place Sump Pump & Piping 32 MH $200.00 $6,400.00 Pour Pit Floor (12x14x2 ft) 168 SF $9.50 $1,596.00 Build Pit Walls (8" CMU) - 421f x 4 ft high) 168 SF $20.00 $3,360.00 Waterproof Pit Walls 252 SF $7.50 $1,890.00 Backfill Pit Walls 10 CY $160.00 $1,600.00 Cut Holes in three floor slabs (10 x12) 180 LF $7.50 $1,350.00 Remove Structural Slabs From Openings 360 SF $7.00 $2,520.00 Build Shaft Walls (42 ft x 48 ft) 2,016 SF $20.00 $40,320.00 Cut open and patch roof 120 SF $25.00 $3,000.00 Structural Supports at openings 168 LF $65.00 $20,920.DD Roof on Shaft 120 SF $3S.00 $4,200.00 Install Elevator 4 Stop $42,000.00 $168,000.00 $0. Subtotal $250,316.00 Appendix A Page 2 Deficency #7 - Covered In Deficency # 4 QUANTITY u M UNIT Cosy TOTALS SD.DD Deficency #8 - Covered in Deficency # 4 QUA Hmr u M UNIT cosy Tora�s $0.00 Deficency #9 - Remove Remaining Interior Partitions Demo Brick walls covered with plaster (40 If x 9'-0") Subtotal QUANTITY 360 u M SF UNrrCOsr $15.00 TOTALS $S,40G.00 $0.00 $SAW. Deficency #10 - Concrete Beam Repairs Not applicable, CGI did not encounter significant beam damage on firs 2,3 Subtotal QUANTITY U/M UNrr COST TOTALS $0.00 $O.UU Deficency #11- Repair Roof Drains & Plumbing Drains and Vents Not applicable, roof slopes to gutter, old plumbing stacks to be abandoned Subtotal QUANmY u M UNrroosr TOTALS $0.00 $0. Deficency #12 - Patch Boles in Ceilings & Floors to Meet Fire Code Approximately 30 holes (figure 4 manhours at each patch) Subtotal QUANTITY 30 u M EA UNIT ODST $600.00 TOTALS $18,000.00 $0.00 $18,ODO.00 Deficency #13 - Covered under Deficiency #4 QUA NTITY u M UNIT�Co r TOTALS $O.Do Deficency #14 - Covered under Deficiency #4 QUANTITY U M UNIT COST TOTALS $O.DD Deficency #15 - Covered Under Deficiency #9 uO ANrrrY u M UNITCOST TOTALS $0.00 Deficency #16 - Covered Under Deficiency #10 CLUANTrrY 1M UNIT COST TOTALS $0.00 Deficency #17 - Covered Under Deficiency #11 QUANTITY u M uNrr COST TOTALS $0.00 Deficency #18 - Covered Under Deficiency #12 QUANWY U M UNIT COST TOTALS SD.Do Deficency #19 - Covered Under Deficiency #S QUANrmr u M uNrr COST TOTALS $0.. Appendix A Page 3 Deficency #20 - Add Code Compliant Lighting on Upper Two Floors QUANTITY Ulm UNIT COST TOTALS Lighting 15,048 SF $3.50 $52,668. Lighting Controls 15,048 SF $1.50 $22,572. (rough -in included in item #23) $0.00 Subtotal S7S,240. Deficency #22 - Add Code Compliant HCAV System & Controls QUANTITY U/M UNIT COST TOTALS Roof Top AHLIs 15,D48 SF $20.00 $150,480. Ductwork && Duck Insulation (Main Trunks Only) 15,048 SF $3.50 $52,668. Exhaust Fans (common restrooms only) 15,D48 SF $0.50 $7,524. $0. Subtotal $210,672. Deficency #22 - Covered Under Deficiency #5 QUANTITY UL UNIT COST TOTALS Deficency #23 - Add Code Compliant Electrial Distribution System QUANTITY u M UNIT COST TOTALS Switchgear 15,048 5F $1.20 $18,057. Rough In 15,D48 SF $4.00 $60,192. Wire 15,D48 SF $1.75 $26,334. Wiring Devices 1S,048 SF $0.45 $6,771. Motor/Equipment Connections 15,048 SF $2.25 $18,810. Fire Alarm 25,048 SF $1.60 $24,076.8 Subtotal $154,242. Deficency #24 - Add Code Compliant Plumbing Piping & Fixtures uQ ANT Ulm UNIT cost TOTALS (Assume 1 set of common restrooms per floor) Boiler System 15,D48 SF $2.10 $31,600. Chiller System 15,048 SF $2.10 $31,600. Hydronic Pumps 15,048 SF $0.7S $11,296.00 Hydronic Piping 15,D48 SF $1.S0 $22,572. Hydronic Labor 15,D48 SF $5.00 $75,240. Plumbing Piping & Fittings 15,D48 5F $4.00 $60,192. Plumbing Fixtures & Trims 1S,048 SF $2.50 $37,620. Drains & Carriers 1S,048 SF $0.7S $11,286. Plumbing Labor 15,048 SF $7.50 $122,860. Structural Supports for Rooftop Equipment 3,SD0 5F $1S.00 $52,500. Subtotal $446,7S7. Direct Construction Costs Total for All Priced Deficency Corrections General Conditions as a Percent of Construction Costs (12%) Construction Contingency (10 %) Architect/Engineering Fee (7.5%) Total Project Cost for All Deficency Corrections Estimated Cost to Build a 22,572 SF Hotel on a Green Site 15 % of the Cost of a New Building on a Green Site $1,711,701 $205,404 $191,711 $158,161 $2,266,977 22572 SF $280 $6,320,160 $6,320,160 0.15 $948,024 (Estimated Cost of Deficiencies is 36% of the Cost of a New Building on a Green Site) PLEASE NOTE THAT THIS DOCUMENT IS BEING PROVIDED FOR THE SOLE PURPOSE OF CONFIRMING THAT THE COSTS ASSOCIATED WITH CORRECTING THE IDENTIFIED DEFICIENCIES EXCEED THE THRESHOLD REQUIRED TO QUALIFY FOR TIF FINANCING. USE FOR ANY OTHER PURPOSE WOULD NOT BE APPROPRIATE - Contegrity Group, Inc. RESOLUTION NO. 15383 RESOLUTION APPROVING A MODIFICATION OF THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 4 AND THE CREATION OF A TAX INCREMENT FINANCING PLAN FOR THE ESTABLISHMENT OF TAX INCREMENT FINANCING DISTRICT NO. 4-22 (A REDEVELOPMENT DISTRICT) BE IT RESOLVED by the City Council (the "Council") for the City of Hutchinson, Minnesota (the "City"), as follows: Section 1. Recitals. 1.01 The City is authorized by Minnesota Statutes, Chapter 469 and specifically Section 469.091, to establish an economic development authority to coordinate and administer economic development and redevelopment plans and programs of the City. 1.02 The Council established Economic Development District No. 4 pursuant to Minnesota Statutes, Sections 469.001 to 469.047, inclusive, as amended (the "Act"), in an effort to encourage the development and redevelopment of certain designated areas within the City; and 1.03 A developer has proposed to acquire, and to construct an upscale, 20-24 room hotel located at the former Jorgensen Hotel building site on 2 Main Street South in the City of Hutchinson (the "Proposed Project"); and 1.04 The EDA has proposed the modification of the Development Program for the Development District and the establishment of Tax Increment Financing District No. 4-22 (a redevelopment district) located within the Development District (hereinafter referred to as the "TIF District") pursuant Minnesota Statutes Sections 469.174 through 469.1794 (the "TIF Act"), through the adoption of a Modification of the Development Program and Tax Increment Financing Plan therefore (hereinafter referred to as the "TIF Plan") prepared in accordance with the Act and TIF Act to provide assistance in developing the Proposed Project and encouraging investment within the boundaries of the Development District. 1.05 The EDA has transmitted a copy of the proposed TIF Plan to the City Council in a document entitled "Modification to the Development Program for Development District No. 4 and the Tax Increment Financing Plan for the Establishment of Tax Increment Financing District No. 4- 22 (a redevelopment district)" which is now on file in the office of the City Clerk. 1.06 Pursuant to Section 469.175, Subdivision 3 of the TIF Act, the EDA has requested the City to hold a public hearing on the Development Program Modification and the TIF Plan and to approve the Development Program Modification and the TIF Plan, which hearing was held on December 14, 2021, at which time the views of all interested parties were heard. 1.07 Pursuant to Section 469.175, Subdivision 2 of the TIF Act, the EDA has provided the McLeod County Auditor and the Clerk of the School Board of Independent School District No. 423 with a copy of the proposed TIF Plan, which includes the EDA's estimate of the fiscal and economic implications of the proposed TIF District. 1.08 After investigation of the facts, the Council is of the opinion that: it is necessary for the sound and orderly development of the Development District and of the City as a whole and for the protection and preservation of the public health, safety and general welfare, that the powers authorized by the Act be exercised by the EDA to provide public financial assistance to the Proposed Project, as may be modified; proper development of the Development District in accordance with the City's long range plans is essential to the economic viability of the Proposed Project, the economic well-being of the City and its residents and the orderly development of the City; it is necessary for the orderly and beneficial development of the Development District to provide for the cost of certain improvements within the TIF District, including acquisition costs, site improvements and project site preparation and utilities; there is a need for redevelopment within the Development District to improve the tax base of the City and the State of Minnesota (the "State"), to improve the general economy of the City and the State, and to provide other facilities as identified in the TIF Plan; creation of the TIF District is in the public interest and will result in the preservation and enhancement of the tax base of the City; that the TIF District is intended and, in the judgment of the City, its effect will be to promote and accomplish the objectives specified in the TIF Plan, which are all consistent with the efforts already made for the development of the Development District. Section 2. Intent. It is declared to be the intent of the Council that the EDA to use the powers granted to it by the Act, the Enabling Resolution and the TIF Act to achieve the objectives thereof Section 3. Statutory Findings Relative to Development Program Modification. 3.01 The land in the Project Area would not be made available for economic development without the financial assistance provided in the Development Program, as modified. 3.02 It is the opinion of the Council based on information contained in the Development Program, as modified, that development and redevelopment within the Project Area would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future. 3.03 The Development Program, as modified, conforms to the general plan of the City as a whole. 3.04 It is the opinion of the Council that the present use of the Project Area is under used. Further, development of the Project Area is in the public interest and constitutes a public purpose. 3.05 The Council hereby reconfirms its findings that formed the basis of creating the Project Area in the original Development Program, as modified. Section 4. Approval of Development Program Modification. 4.01 The Development Program Modification is approved. 2 Section 5. Statutory Findings Relative to Creation of TIF District. 5.01 It is the opinion of the City, based on discussions with representatives of the developer and information contained in the TIF Plan that, and the City hereby finds, development and redevelopment within the TIF District would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future, that the increased market value of the site to be included in the TIF District 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 redevelopment in the TIF District after subtracting the present value of the projected tax increments for the maximum duration of the TIF District permitted by the TIF Plan; and that the use of tax increment financing is necessary. (See the TIF Plan for the reasons and supporting facts which are incorporated herein by reference.) Due to the cost of redevelopment, the Proposed Project would not be feasible and will not occur without the help of tax increment financing. 5.02 The increased market value of the site to be included in the TIF District 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 redevelopment in the TIF District after subtracting the present value of the projected tax increments for the maximum duration of the TIF District permitted by the TIF Plan: A. The City and the Council estimate that the amount by which the market value of the entire TIF District would increase without the use of tax increment financing is in an amount from $0 to some modest amount of land value appreciation. B. If the Proposed Project is constructed in the TIF District, the total increase in market value is estimated to be $1,275,000. C. Even if some development other than the proposed development were to occur, the City finds that no alternative would occur that would produce a market value increase greater than $337,681 without tax increment assistance. 5.03 Based on information contained in the TIF Plan, the TIF Plan conforms to the general plan for the redevelopment of the City as a whole. The Council finds that adoption of the TIF Plan would encourage redevelopment in the City, provide economic opportunities, improve the tax base, and improve the general economy of the City and the State. 5.04 Based on information contained in the TIF Plan, the TIF Plan will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the redevelopment of the Development District by private enterprise. Section 6. Approval of TIF Plan. 6.01 The TIF Plan is approved and the TIF District is established. 6.02 The geographic boundaries of the TIF District are as described in the TIF Plan, which document is incorporated herein by reference and which contains the requirements set forth in Section 469.175, Subdivision 1 of the TIF Act. Section 7. Designation of TIF District. 7.01 A. The TIF District is a "redevelopment district" as defined by Section 469.174, Subdivision 10(a) of the TIF Act because it is located within the Development District and the City hereby finds it to be in the public interest because the following conditions are reasonably distributed throughout the geographic area of the TIF District: (1) the TIF District is a redevelopment district consisting of one parcel; and (2) an inventory shows that the parcel consists of more than 70 percent of the area of the TIF district is occupied by buildings, streets, utilities, paved or gravel parking lots, or other similar structures; and (3) the building inspected, not including outbuildings, is structurally substandard to a degree requiring substantial renovation or clearance. B. The TIF District consists of one tax parcel for real estate tax purposes, which is "occupied" by buildings, streets, utilities, paved or gravel parking lots, or other similar structures or whether noncontiguous areas apply, the provisions of Section 469.174, Subdivision 10(b) through (f) of the TIF Act apply. A parcel is considered "occupied" if more than 15% of the area of the parcel contains buildings, streets, utilities, paved or gravel parking lots, or similar structures. See Exhibit A hereto which documents the parcel which is occupied and that more than 70% of the area within the TIF District is contained in such occupied parcel. C. Pursuant to Minnesota Statutes, Section 469.174, Subd. 10(d), a parcel will be deemed to be occupied by a structurally substandard building for purposes of the findings in Section 7.01A.(3). 7.02 The reasons and supporting facts for determination that the TIF District meets the criteria set forth in Section 7.01 hereof will be retained and made available to the public by the City until the TIF District has been terminated. 7.03 At least 90 percent of the revenues derived from tax increments from the TIF District will be used to finance the cost of correcting conditions that allowed designation of the TIF District under Section 469.176, Subd. 4 of the TIF Act. EA Dated: December 14, 2021 ATTEST: Gary T. Forcier, Mayor Matthew Jaunich, City Administrator (Seal) M:\DOCS\22546\000001 \ROL\ 1AA591402.DOC RESOLUTION NO. 15384 RESOLUTION APPROVING THE TERMS OF A $30,000 TAX INCREMENT INTERFUND LOAN IN CONNECTION WITH TAX INCREMENT FINANCING DISTRICT NO.4-22. BE IT RESOLVED by the City Council (the "Council") of the City of Hutchinson, Minnesota (the "City"), as follows: Section 1. Background. 1.01. The City has approved the establishment of Tax Increment Financing District No. 4-22 (the "TIF District") within Development District No. 4 (the "Project Area"), and has adopted a Tax Increment Financing Plan (the "TIF Plan") for the purpose of financing certain improvements within the Project Area. 1.02. The City has determined to pay for certain costs identified in the TIF Plan consisting of site improvements/preparation, interest, and administrative costs (collectively, the "Qualified Costs"), which costs may be financed on a temporary basis from City funds available for such purposes. 1.03. Under Minnesota Statutes, Section 469.178, Subd. 7, the City is authorized to advance or loan money from the City's general fund or any other fund from which such advances may be legally authorized, in order to finance the Qualified Costs. 1.04. The City intends to reimburse itself for the Qualified Costs from tax increments derived from the TIF District in accordance with the terms of this resolution (which terms are referred to collectively as the "Interfund Loan") - Section 2. Terms of Interfund Loan. 2.01. The City hereby authorizes the advance of up to $30,000 from the Development District 4 4 fund or so much thereof as may be paid as Qualified Costs. The City shall reimburse itself for such advances from Available Tax Increment (defined below) together with interest at the rate of 4%, which does not exceed the greater of the rates specified under Minnesota Statutes, Section 270C.40 or Section 549.09 as of the date the loan is authorized. Interest accrues on the principal amount from the date of each tranche. 2.02. Principal and interest ("Payments") on the outstanding Interfund Loan balance shall be paid annually on each December 31 (each a "Payment Date"), commencing on the first Payment Date on which the City has Available Tax Increment (defined below), or on any other dates determined by the City Administrator, through the date of last receipt of tax increment from the TIF District. 2.03. Payments on this Interfund Loan are payable solely from "Available Tax Increment," which shall mean, on each Payment Date, tax increment available after other obligations have been paid, or as determined by the City Administrator, generated in the preceding twelve (12) months with respect to the property within the TIF District and remitted to the City by McLeod County, all in accordance with Minnesota Statutes, Sections 469.174 to 469.1794, all inclusive, as amended. Payments on this Interfund Loan may be subordinated to any outstanding or future bonds, notes or contracts secured in whole or in part with Available Tax Increment, and are on parity with any other outstanding or future interfund loans secured in whole or in part with Available Tax Increment. 2.04. The principal sum and all accrued interest payable under this Interfund Loan are pre -payable in whole or in part at any time by the City without premium or penalty. No partial prepayment shall affect the amount or timing of any other regular payment otherwise required to be made under this Interfund Loan. 2.05. This Interfund Loan is evidence of an internal borrowing by the City in accordance with Minnesota Statutes, Section 469.178, Subd. 7, and is a limited obligation payable solely from Available Tax Increment pledged to the payment hereof under this resolution. This Interfund Loan and the interest hereon shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including, without limitation, the City. Neither the State of Minnesota, nor any political subdivision thereof shall be obligated to pay the principal of or interest on this Interfund Loan or other costs incident hereto except out of Available Tax Increment, and neither the full faith and credit nor the taxing power of the State of Minnesota or any political subdivision thereof is pledged to the payment of the principal of or interest on this Interfund Loan or other costs incident hereto. The City shall have no obligation to pay any principal amount of the Interfund Loan or accrued interest thereon, which may remain unpaid after the final Payment Date. 2.06. Before the latest decertification of any tax increment financing district from which the interfund loan is to be repaid, the City may modify or amend the terms of this Interfund Loan, in writing, by resolution of the City Council, including a determination to forgive the outstanding principal amount and accrued interest to the extent permissible under law. Section 3. Effective Date. This resolution is effective upon the date of its approval. The motion for the adoption of the foregoing resolution was duly seconded by Council member , and upon a vote being taken thereon, the following voted in favor thereof: and the following voted against the same: Dated: December 14, 2021 Gary T. Forcier, Mayor (Seal) ATTEST: Matthew Jaunich, City Administrator HUTCHINSON CITY COUNCIL Cftyaf aa� Request for Board Action7kia' Agenda Item: PUBLIC HEARING ON THE PROPOSED REVISION OF BUSINESS SUBSIDIES Department: EDA LICENSE SECTION Meeting Date: 12/14/2021 Application Complete N/A Contact: Miles R. Seppelt Agenda Item Type: Presenter: Miles R. Seppelt Reviewed by Staff ❑ Public Hearing Time Requested (Minutes): 5 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: In September 2017 the City Council approved a Tax Increment Financing District (TIF) for Hutchcobble, LLC to make it feasible to construct the Cobblestone Inn hotel. TIF was needed to offset the high costs of environmental remediation needed on the site. In setting up the TIF District, a job creation goal of 11.5 full-time equivalents (FTE's) was established. In August 2021 the City received a request from Titanium Partners, owners of the project, to revise the job creation goal down to 7.5 FTE, citing operating efficiencies and general economic conditions. The higher level of staffing is simply not required. A copy of the request from Titanium Partners is included for your review. The EDA Board has reviewed the request and is recommending approval. They observed that the main objective of the project was to redevelop the Hwy 7/15 intersection and that job creation was never a primary goal. At the public hearing, staff will provide additional details and answer any questions that arise. Enclosed for your review is a copy of the letter from HutchCobble LLC requesting the lower job creation goal. If you have any questions or need additional information, please give me a call anytime at (320) 234-4223. BOARD ACTION REQUESTED: Approval of resolution adopting revised business subsidies goals (job creation) for Hutchcobble, LLC Fiscal Impact: $ 0.00 Funding Source: N/A FTE Impact: 0.00 Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: August 31, 2021 Mr. Miles R. Seppelt Economic Development Director City of Hutchinson 1164 Benjamin Avenue SE Hutchinson, MN 55350 Dear Mr. Seppelt, I am writing to inquire if it would be possible for the Hutchinson City Council to revise the job creation goal for the Cobblestone Inn Hotel project (TIF 4-19). Currently, the job creation goal is set at 11.5 full-time equivalents. This estimate was based on industry standards at the time the project was first being considered, but failed to factor in efficiencies and productivity gains that came about from the design and operation of the hotel. The hospitality industry, like many others, is finding ways to deliver the same level of service with fewer people. In the 215t century, we simply don't need that level of staffing (11.5 FTE) to operate, and I don't foresee that we ever would. A more achievable goal would be 7.5 full-time equivalents, so I am requesting that the job creation goal for the project be reset to that level. Thank you for your consideration. Sincerely, Brian Forcier President, Titanium Partners LLC 1330 East 3' Street, Duluth, Minnesota 55805 218461-4344 RESOLUTION NO. 15385 A RESOLUTION ADOPTING REVISED BUSINESS SUBSIDIES GOALS (JOB CREATION) FOR HUTCHCOBBLE LLC WHEREAS, Minnesota Statutes, Sections 116J.993 to 116J.995 (the "Act"), provides that the City, as a local government agency within the meaning of the Act, may grant a business subsidy and must establish measurable, specific and tangible goals for the subsidy, to include wage and job goals; and, WHEREAS the City, as a local government agency within the meaning of the Act, has discretion in establishing said wage and job goals; and, WHEREAS, the City of Hutchinson provided a business subsidy to Hutchcobble, LLC on September 26, 2017 which was partially conditioned upon Hutchcobble, LLC creating 11.5 full-time equivalents (FTE's) jobs; and, WHEREAS, Hutchcobble LLC has requested, in light of current economic conditions, a revision of its job creation goals from 11.5 full-time equivalents (FTE's) to 7.5 FTE'S; and, WHEREAS, the Hutchinson Economic Development Authority has reviewed the request and is recommending City Council approval, THEREFORE, BE IT RESOLVED by the City of Hutchinson, that the job creation goal for Hutchcobble LLC is hereby reset to 7.5 full-time equivalents (FTE's). Adopted by the City Council this 14th day of December of 2021. Gary T. Forcier Mayor ATTEST: Matthew Jaunich City Administrator cR HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Review of Truth in Taxation Hearing Agenda Item: Department: Administration LICENSE SECTION Meeting Date: 12/14/2021 Application Complete N/A Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff M Communications, Requests Time Requested (Minutes): 5 License Contingency N/A Attachments: No BACKGROUND/EXPLANATION OFAGENDA ITEM: As a follow up to the Truth in Taxation Hearing from December 7, the Council should have a discussion on whether or not there is a desire to change anything in regards to the 2022 budget and/or tax levy. Requests (if any) for additional information from the Truth in Taxation Hearing and/or any changes to the proposed budget/levy will be presented at this time as well. BOARD ACTION REQUESTED: No action at this time. Final budget and levy will be approved at the December 28 meeting Fiscal Impact: Funding Source: FTE Impact: Budget Change: New Bu Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: N/A Remaining Cost: $ 0.00 Funding Source: N/A cR HUTCHINSON CITY COUNCIL F. j k "-K;r:f.'Adln Request for Board Action A CITY ON PURPOSE. Discussion of Voting Hours for Special Election Being Held February 8, 2022 Agenda Item: Department: Administration/Elections LICENSE SECTION Meeting Date: 12/14/2021 Application Complete N/A Contact: M. Starke/M. Jaunich Agenda Item Type: Presenter: M. Starke/M. Jaunich Reviewed by Staff ❑� Communications, Requests Time Requested (Minutes): License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: The City is holding a special election on February 8, 2022, to fill the vacant seat of Council Member Seat 3 that was vacated by Brandon Begnaud earlier this year. Two candidates have filed for the vacant seat - Patrick May and Carol Johnson. This seat is the only item being voted on at the special election. It is anticipated that voter turnout will be lower than at a regular election, therefore staff would like to discuss voting hours for the special election. According to state law, voting hours for a regular election are from 7:00 a.m. - 8:00 p.m. There are exceptions to these voting hours in certain circumstances. For example, for city, town and school -only elections located in the metropolitan area, polling places do not have to open until 10:00 a.m. For those outside the metropolitan area, mininum voting hours are from 5:00 p.m. - 8:00 p.m. Staff would like Council's feedback on voting hours for the special election in February - either keep the voting hours as they are for regular elections or perhaps consider reducing the voting hours to one of the options above or a variation of the two. As with every election, staff will be administering absentee voting at the City Center beginning 46 days before the special election. BOARD ACTION REQUESTED: Discussion only Fiscal Impact: Funding Source: FTE Impact: Budget Change: New Bu Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: N/A Remaining Cost: $ 0.00 Funding Source: N/A HUTCHINSON CITY COUNCIL "=yof� Request for Board Action7kia' Agenda Item: Second Reading and Adoption of Ordinance No. 21-827 Department: EDA LICENSE SECTION Meeting Date: 12/14/2021 Application Complete N/A Contact: Miles R. Seppelt Agenda Item Type: Presenter: Miles R. Seppelt Reviewed by Staff ❑ Unfinished Business Time Requested (Minutes): 1 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: As part of the Franklin redevelopment project the City will be selling two parcels to Hutch Uptown Commons LLC. To accomplish this, the City Council will have to adopt an ordinance authorizing the sale of municipally owned land. The first reading of the ordinance was held at the November 14th City Council meeting, with the 2nd reading and adoption being considered on December 14th. The City Council approved the Purchase and Development Agreements with Hutch Uptown Commons, LLC earlier this year. The project will be for the construction of rental town homes on the "Old Medical Clinic" site and "Franklin House" site at the north end of Franklin Street. The Developer has indicated that construction could potentially begin in mid -summer 2022. If you have any questions or need additional information, please give me a call anytime at 234-4223. BOARD ACTION REQUESTED: Second reading and adoption of Ordinance No. 21-827 Fiscal Impact: $ 0.00 Funding Source: FTE Impact: 0.00 Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: ORDINANCE NO. 21-827 PUBLICATION NO. AN ORDINANCE OF THE CITY OF HUTCHINSON, MINNESOTA, AUTHORIZING THE SALE OF MUNICIPALLY OWNED REAL PROPERTY THE CITY OF HUTCHINSON ORDAINS: Section 1. That the municipally owned real property legally described as follows: Lots 1, 2, 3, 4, 5 Block 41, North Half Hutchinson and Lots 9 & 10, Block 42, North Half Hutchinson, Excepting therefrom that part of Lot Ten (10) described as follows: Beginning at the southwest comer of said Lot 10, Block 42, North half Hutchinson, thence Northerly along the west line of said Lot 10, for a distance of 66.00 feet to the northwest comer of said Lot 10; thence Easterly along the north line of said Lot 10, for a distance of 66 feet; thence in a southwesterly direction across said Lot 10, to the point of beginning. for good and valuable consideration is hereby transferred and conveyed to Hutch Uptown Commons, LLC, or its successor or assigns as agreed upon in the purchase agreement. Section 2. The City Administrator, Matthew Jaunich, or his designee is authorized to sign any and all documents on behalf of the City to effectuate the closing of this transaction. Section 3. This ordinance shall take effect upon its adoption and publication. Adopted by the City Council this 14th day of December, 2021. Gary T. Forcier Mayor ATTEST: Matthew Jaunich City Administrator cR HUTCHINSON CITY COUNCIL HUTCHIMM Request for Board Action A CITY ON PURPOSE. Resolution 15381 Authorizing Prepayment and Redemption of Outstanding Bonds Agenda Item: Department: Finance LICENSE SECTION Meeting Date: 12/14/2021 Application Complete N/A Contact: Andy Reid Agenda Item Type: Presenter: Reviewed by Staff ❑� New Business Time Requested (Minutes): 3 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: The City's finance staff and Ehlers are recommending the early prepayment and redemption of the outstanding bonds related to debt issued in 2013. The total principal amount of debt being prepaid is $935,000, as shown on the last page of the attached resolution. The funding sources for the prepayment include cash on hand within the 2013 debt service fund and a portion of the $3,000,000 that the city council committed to the new police facility from the community improvement fund. The redemption will be done with the February 1, 2022 debt service payment, which is the earliest we can pay off the remaining bonds. You may recall that we did an early redemption in August 2021 for the 2009-2012 bonds. Redeeming the 2013 bonds is the last step in our plan to clear existing debt from our debt tax levy in order to lessen the tax impact of the new Police Facility debt. Details of the refunding can be found at the back of the attached resolution within the "Notice of Redemption" pages. The benefit to the city is evident in the interest rates we are avoiding with the redemptions, ranging from 3% to 3.5%. The new debt for the police facility will be structured to load heavier principal repayments in the first five years to essentially replace the debt being prepaid, however at much lower interest rates of 0.55% to 1.2%, or lower. BOARD ACTION REQUESTED: Approve Resolution 15381 Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: N/A Remaining Cost: $ 0.00 Funding Source: N/A CERTIFICATION OF MINUTES RELATING TO REDEMPTION OF OUTSTANDING SERIES 2013A BONDS Issuer: City of Hutchinson, Minnesota Governing Body: City Council Kind, date, time and place of meeting: A regular meeting held December 14, 2021, at 5:30 P.M., at the City offices. Members present: Members absent: Documents Attached: Minutes of said meeting (including): RESOLUTION NO. _15381_ RESOLUTION AUTHORIZING PREPAYMENT AND REDEMPTION OF OUTSTANDING SERIES 2013A BONDS I, the undersigned, being the duly qualified and acting recording officer of the public corporation referred to in the title of this certificate, certify that the documents attached hereto, as described above, have been carefully compared with the original records of said corporation in my legal custody, from which they have been transcribed; that said documents are a correct and complete transcript of the minutes of a meeting of the governing body of said corporation, and correct and complete copies of all resolutions and other actions taken and of all documents approved by the governing body at said meeting, so far as they relate to said Bonds; and that said meeting was duly held by the governing body at the time and place and was attended throughout by the members indicated above, pursuant to call and notice of such meeting given as required by law. WITNESS my hand officially as such recording officer December 14, 2021. Matthew Jaunich City Administrator Member introduced the following resolution and moved its adoption, which motion was seconded by Member RESOLUTION AUTHORIZING PREPAYMENT AND REDEMPTION OF OUTSTANDING SERIES 2013A BONDS BE IT RESOLVED by the City Council of the City of Hutchinson, Minnesota (the "City"), as follows: Section 1. Pursuant to resolution adopted by this Council on August 13, 2013, the City issued its General Obligation Improvement Bonds, Series 2013A in the original principal amount of $2,230,000 (the "Bonds"). Section 2. This Council has determined that it has or will have sufficient moneys available to exercise its option to prepay the aggregate unpaid principal, plus interest accrued, on the Bonds currently outstanding. The officers of the City are hereby authorized and directed (i) to give notice to Bond Trust Services Corporation, as registrar (the "Registrar") of the City's intention to exercise its option to prepay; and (ii) to direct that the Registrar redeem, as soon as is practicable, the outstanding Bonds. Upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon the resolution was declared duly passed and adopted. NOTICE OF REDEMPTION General Obligation Improvement Bonds, Series 2013A Dated September 5, 2013 City of Hutchinson, Minnesota NOTICE IS HEREBY GIVEN THAT there have been called for redemption and prepayment on February 1, 2022 all outstanding Bonds of the above referenced issue, maturing in the following years on the following dates and having the interest rates listed below: Maturi1y Amount Rate CUSIP Number* 2/l/2023 170,000 3.000 448285 KKl 2/l/2025 280,000 3.000 448285 KM7 2/l/2027 235,000 3.200 448285 KPO 2/l/2029 250,000 3.500 448285 KR6 The Bonds will be redeemed at a price of 100% of their principal amount plus accrued interest to the date of redemption. Holders of the Bonds should present them for payment to Bond Trust Services Corporation, Roseville, Minnesota, on or before said date, when they will cease to bear interest, in the following manner: By Mail, Overnight Mail, or Courier Service, or In Person, By Hand: Bond Trust Services Corporation Attention: Bond Trust Services 3060 Centre Point Drive Roseville, Minnesota 55113 651-697-8500 Important Notice: In compliance with the Economic Growth and Tax Relief Reconciliation Act of 2001, federal backup withholding tax will be withheld at the applicable backup withholding rate in effect at the time the payment by the redeeming institutions if they are not provided with your social security number or federal employer identification number, properly certified. This requirement is fulfilled by submitting a W-9 Form, which may be obtained at a bank or other financial institution. The Registrar shall not be responsible for the selection of or use of the CUSIP numbers, nor is any representation made as to its correctness indicated in this Notice of Redemption. It is included solely for the convenience of the Holders. Additional information may be obtained from the undersigned or from Ehlers & Associates, Inc., 3060 Centre Point Drive, Roseville, Minnesota 55113-1105 (651-697-8500), financial advisor to the City. Dated: 12021. BY ORDER OF THE CITY COUNCIL CITY OF HUTCHINSON, MINNESOTA By s/ City Finance Director *Denotes full call of CUSIP. HRA HUTCHINSON HOUSING AND REDEVELOPMENT AU HORITY Regular Board Meeting Teleconference Call (GoToMeeting) Tuesday, October 19, 2021, 7:00 AM Minutes 1. CALL TO ORDER: Chair Renee Lynn Johnson Kotlarz called the meeting to order virtually in GoToMeeting. Members Present: Steve Jensen, and Kimberly Merwin virtually in GoToMeeting. Staff Present: Judy Flemming. a. Approve the Hutchinson HRA Regular Board Meeting agenda and any agenda additions and/or corrections. Steve Jensen moved to approve the agenda as presented and Kimberly Merwin seconded. Roll Call: Kotlarz — Aye; Jensen — Aye; & Merwin — Aye. The motion carried unanimously. 2. CONSIDERATION OF MINUTES OF THE REGULAR BOARD MEETING ON SEPTEMBER 21, 2021 Steve Jensen moved to approve the Minutes of the regular board meeting and Kimberly Merwin seconded. Roll Call: Kotlarz — Aye; Jensen — Aye; & Merwin — Aye. The motion carried unanimously. 3. FINANCIAL REPORTS Steve Jensen moved to approve the: a. City Center General Fund payments of $11,799.33 for checks 9220 to 9225 b. September 30, 2021 City Center financial statements c. Revised Park Towers operating account 8/12/2021 to 9/16/2021 payments of $30,787.81 for checks 15467 to 15492 d. Park Towers operating account payments of $33,929.46 for checks 15493 to 15515 Kimberly Merwin seconded. Roll Call: Kotlarz — Aye; Jensen — Aye; & Merwin — Aye. The motion carried unanimously. e. Steve Jensen moved to approve the Park Towers Security Deposit account payment of $340.01 for check 1599. Kimberly Merwin seconded. Roll Call: Kotlarz — Aye; Jensen — Aye; & Merwin — Aye. The motion carried unanimously. f. Steve Jensen moved to approve August 31, 2021 Park Towers financial statements. Kimberly Merwin seconded. Roll Call: Kotlarz — Aye; Jensen — Aye; & Merwin — Aye. The motion carried unanimously. 4. PARK TOWERS a. Park Towers October Newsletter - FYI b. Park Towers operations update, Box Score Vacancy Report: 3 — I Bdrm (1-H/C) & 1 — 2 Bdrm. 2 more vacant by the end of the year too. c. Consideration of 2022 Park Towers Budget prepared by C Naber & Associates: 2022 rents, 3% wage increase, & new required replacement reserves deposit. • Steve Jensen moved to approve the 2022 Park Towers Budget prepared by C Naber & Associates. Kimberly Merwin seconded. Roll Call: Kotlarz — Aye; Jensen — Aye; & Merwin — Aye. The motion carried unanimously. October 19, 2021 Minutes Page 1 of 2 d. Steve Jensen moved to approve the Limited English Proficiency (LEP) Plan. Kimberly Merwin seconded. Roll Call: Kotlarz — Aye; Jensen — Aye; & Merwin — Aye. The motion carried unanimously. e. Maintenance Updates: • Fall Service & Repairs of Boilers • Pipe Break in Beauty Shop • Steve Jensen moved to approve the Bradley Security Electrohydraulic Operator & Maglock replacement estimate. Kimberly Merwin seconded. Roll Call: Kotlarz — Aye; Jensen — Aye; & Merwin — Aye. The motion carried unanimously. • City Rental Registration Inspections will be November 9`h & 10''. 5. CONSIDERATION OF AUTHORIZATION TO OPEN A SEPARATE BUSINESS CHECKING ACCOUNT FOR THE PROCEEDS FROM THE OPERATING RESERVES LITIGATION. Steve Jensen moved to authorize opening a separate business checking account for the proceeds from the Operating Reserves Litigation. Kimberly Merwin seconded. Roll Call: Kotlarz — Aye; Jensen — Aye; & Merwin — Aye. The motion carried unanimously. 6. SCDP RENTAL REHAB PROJECT UPDATE Waiting for DEED Close-out Letter. 7. HRA TECHNICIAN POSITION UPDATE a. Kimberly Merwin moved to enter into an agreement with the City of Hutchinson to share the services of the Engineering Administrative Specialist on a .50 FTE basis. Steve Jensen seconded. Roll Call: Kotlarz — Aye; Jensen — Aye; & Merwin — Aye. The motion carried unanimously. 8. CONSIDERATION OF SUBORDINATION REQUEST FOR 1065 SHERWOOD STREET SW Kimberly Merwin moved to approve the subordination request for 1065 SHERWOOD STREET SW contingent to the Loan Review Committee's approval. Steve Jensen seconded. Roll Call: Kotlarz — Aye; Jensen — Aye; & Merwin — Aye. The motion carried unanimously. 9. COMMUNICATIONS: a. FYI - HAI Low Loss Ratio Award for 2017-2019 HARRG policy years b. Next meeting will be virtually since the COVID cases are still high in McLeod County. 10. ADJOURNMENT Steve Jensen moved to adjourn and Kimberly Merwin seconded. Roll Call: Kotlarz — Aye; Jensen — Aye; & Merwin — Aye. There being no other business, Chair Renee Lynn Johnson Kotlarz declared the meeting adjourned. Recorded by Judy F ming, HRA Executive Director Gary For ier, Secretary/Treasurer It October 19, 2021 Minutes Page 2 of 2 Library Board Meeting October 25, 2021 Members Present: Mary Christensen, Margaret Hoffman, Kay Hultgren, Dianne Wanzek, and Katy Hiltner, Ex-officio. Excused/Absent: Jared Golde, Julie Lofdahl, Carolyn Ulrich Dianne called the (in -person) meeting to order at 4:30. Minutes from the September 27, 2021, meeting were reviewed and approved. Old Business: 1. Library Board Information Flyer: There was discussion over the stipulation in Part A (# of members) that members ,'must reside in the City of Hutchinson". It seems that some city boards are removing that requirement. Mary will check on this item. New Business: 1. Virtual Ghost Tour: Winsted and Hutchinson are partnering with the Anoka County Historical Society for this presentation. Information has been put out on social media and the library's website. Interested participants can contact Katy to receive the link for this event. The board discussed a possible partnership with Historic Hutch for something similar in the future. 2. Children's Digital Programs: Programming will likely remain online through the winter. Rachelle will do story hours, Lego challenge, make and take crafts, etc. in the online/cable tv format. 3. NalloWriMo (National Novel Writing Month) : This year's challenge will be to write a 6 Word Story. Prompts will be put out on social media and the website. 4. Winter Reading Program: PioneerLand is spearheading the theme Winter Reads 2022, and will provide graphics, etc. Friends of the Library will fund mugs and tote bags for rewards. Katy is looking for suggestions as to categories for the bonus books (e.g., a one -word title, a _(color) book) 5. Library Buzz: Margaret: And the Mountains Echoed flby Khaled Hosseini Mary: Freedom Detective (NF) by Charles Lang Katy: The Four Winds (F) by Kristin Hannah Kay: A Good Time for the Truth (NF) by Sun Yung Shin Dianne: The Good Sister (F) by Sally Hepworth September Donations and Grants Thrivent Grant $225.96 American Legion Auxiliary $ 20.00 (memorial for Darlene Ondracek) Sammie $127.99 (teen grant —for Rachelle) SW Initiative Foundation $143.88 (Welcoming Wk book read kit) Kiwanis Club of Hutch. $900.00 Total = $1,417.83 Next Meeting: Monday, November 22, 2021, 4:30 pm., in meeting room. Respectfully submitted: Kay Hultgren, Secretary EDA Board Meeting Hutchinson Enterprise Center 11:30 AM Wednesday, October 27th, 2021 MEETING MINUTES Members present in bold. EDA Board Members Mike McGraw Jonny Block Mike Cannon Corey Stearns Daron Vanderheiden Chad Czmowski Mary Christensen Jeremy Carter Staff Miles Seppelt, EDA Director Matt Jaunich, City Administrator Andy Reid, Finance Director Maddie Newcomb, EDA Program Manager I. Call to Order Meeting called to order at 11:30 AM. II. Review Agenda III. Review Minutes a. b. C. September 15th Finance Team meeting M/S/P: Cannon, Stearns to approve the minutes as written. Passed unanimously. September 22"d EDA Board Meeting M/S/P: Christensen, Czmowski to approve the minutes as written Economic Development Authority Financial Summary as of September 2021 Operations Cash Available $112,796 Reserved $56, 736 Unreserved $51,202 Economic Development Loan Fund Cash Available $135,062 Ashwill Industries Balance $1,179 Zephyr Wind Services $78,661 Laser Dynamics Balance (forgivable) $23,000 Innovative Foam Balance (forgivable) $14,355 Advances to other funds (Enterprise $255,423 Center) Downtown Revolving Loan Fund Cash Available $404,859 Loans Receivable $362,256 Capital Assets $201,329 Total Assets $1,104,024 MIF Loan Fund Cash Available $5,671 MOXY Loan Receivable $11,670 Enterprise Center Fund Cash Available $11,331 SHOPKO TIF District (TIF 4-5) Cash Available $197,555 Interfund Loans Receivable $474,085 MEDICAL CLINIC TIF District (TIF 4-16) Interfund Loan Payable $333,863 Passed unanimously IV. Review of EDA Financial Statements Finance Director, Andy Reid provided an update on the EDA financials. (Please refer to table) M/S/P: Vanderheiden, Christensen to approve the financial report as presented. Passed unanimously. V. Director's Report A. Marketing Plan: FB = 610, T = 100, Facebook updates = 20, Twitter updates = 20, Website updates = 0 B. Business recruitment / expansions — Staff provided an update on recent prospects and ongoing conversations. C. BR & E Visits — Staff gave an overview of the BR & E visits done last month: Innovative Foam, Laser Dynamics, MITGI, Lynn Card Company, Zephyr Wind Services & Hutch COOP D. Uptown Commons / Franklin House Update — will close on the property in the next few weeks, McLeod County's Hazard Mitigation Plan is still going through the approval process so will hopefully hear FEMA decision in a couple weeks when that is complete. Staff sent correspondence to Historic Hutch; granting them the extension to move the original barn to a new location before load restrictions are in place in the spring. E. Jorgenson Hotel — met with developer and project director, currently in their due diligence period. They will be contracting with SEH to do an engineering feasibility study which will take roughly a month to complete. F. Industrial Park Property Owner Meetings — Staff had a good meeting with Kulberg and is still looking to set up a meeting with Ide/Decker. G. Marketing Initiative — Staff is putting together a quarterly newsletter for corporate site selectors. Primarily focused on upper Midwest site selectors, the newsletter will contain important information regarding sites, buildings, talent, incentives and expansions. H. Corporate Site Selector Forum — Staff was picked to participate in an online forum with 7 site selectors. I. Workforce Retention Workshop — Similar to the TigerPath workshop for Human Resources done a couple months ago. This workshop will focus on ways to retain your current employees while also covering best practices to cultivate a great work environment. J. McLeod County EDA Staff — new hire is no longer in the position; the County is evaluating its options for moving forward. K. Visit by 15 Economic Development Pros — hosted 15 economic development professionals from the Basic Economic Development Course and gave them a tour of Hutchinson. L. Splash Pad — most likely landing on the 31 Ave/Cenex Site. EDA to get paid in full what we have into the property. M. 101 Park Place — some renovations started. N. Hutch Cafe — moving ahead, interior demolition has taken place. VI. Discussion of Enterprise Center Lease Terms Consider Pros & Cons of extending lease terms for Laser Dynamics and Innovative Foam ■ Both companies expressed interest in extending their leases to the end of 2024. ■ Consensus that 2020 & 2021 were lost years due to the pandemic. ■ Noted that the EDA does not want to get into "renting space," competing with others that have building space available — the goal is to incubate and grow companies. ■ Currently the Enterprise Center is not being marketed, extending leases until 2024 gives staff ample time to actively market the building for new companies. ■ Discussion on a proposed program of increasing rent each year during their extended lease timeframe. This "extra" rent would be escrowed to help with a down payment should the company either build or lease a new building within city limits. ■ Staff will bring this back for consideration next month. VII. Grant & Loan Program Applications — None. Vill. Other Business — None. IX. Set Next Meeting — 11:30 AM Wednesday, December 15', 2021 (Due to Thanksgiving Holiday) X. Adjourn — M/S/P: Stearns, Cannon to adjourn the meeting at 1225pm. Passed unanimously. Respectfully Submitted, Madison Newcomb EDA Program Manager Public Arts Commission November 10 2021 Zoom - 5:30 PM MINUTES In attendance: Justin Beck, Morgan Baum, Jackie Fuchs, Patrick Hiltner, Kay Johnson, Jeri Jo Redman Not in attendance: Pat May, Dan Jochum (ex officio), Lynn Neuman • Call to order 5:39pm • Revisions or Corrections to Agenda • Approve Minutes, approved unanimously • Financial Report o Updated report from Lynn, debit for Karman Rheault PC award. o Sculpture Stroll Updates o People's Choice Award Winner, Karman Rheault (Gaia) o Stipend has been approved through Finance, waiting on Council approval 11/9/2021. • Call for Art Email list has been assigned by Morgan. Any changes to drafts? Send out emails and social media posts by the Thanksgiving holiday weekend. Justin will change the language about the size of the art to accommodate freestanding or the smaller blocks. o We will each personalize emails, encouraging replies to the info@ email. • Ballot boxes at sculptures o Propose we remove these entirely. Motion by Patrick, second by Morgan to remove ballot boxes from random spots. • Website Updates o Justin is working with Stephanie Nelson website redesign stuff. We are required to work through Stephanie and City staff for these changes. • Gateway Park Mural Update o No updates • Other new business/discussion? o The judges award will be known as the "Best in Show." * Clay Coyote downtown mural is going well, should be completed by Thanksgiving _D Justin will include the zoom link in the future agendas • Adjourn, 6:59pm Next meeting is December 8th, 5:30pm on zoom.