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cp09-09-2003 c AGENDA REGULAR MEETING - HUTCHINSON CITY COUNCIL TUESDAY, SEPTEMBER 9, 2003 1. CALL TO ORDER - 5:30 P.M. 2. INVOCATION -Rev. Max Meyers, Riverside Assembly of God Church 3. PLEDGE OF ALLEGIANCE 4. MINUTES (a) REGULAR MEETING OF AUGUST 26, 2003 (b) $II7 OPENING MIlViJTE5 FROM AUGUST 25, 2003 Action -Motion to approve as presented 5. CONSENT AGENDA (a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS 1. BUILDING DEPARTMENT MONTHLY REPORT FOR AUGUST 2003 2. HUTCITINSON PUBLIC LIBRARY BOARD MINUTES FROM JUNE 23, 2003 . 3. FTRE DEPARTMENT MONTHLY REPORT FOR AUGUST 2003 4. HUTCHINSON UTII,ITLE5 COMMISSION FINANCIAL REPORT FOR JULY 2003 (b) RESOLUTIONS AND ORDINANCES 1. ORDINANCE NO. 03-354 - AN ORDINANCE ANNEXING 25.86 ACRES REQUESTED BY RODNEY RIEWER LOCATED IN HASSAN VALLEY TOWNSiiIP ALDNG JEFFERSON STREET SE WITH STAFF RECOMMENDATION AND A FAVORABLE RECOMMENDATION (SECGND READING AND ADOPTION) 2. ORDINANCE NO. 03-355 - AN ORDINANCE REZONING PROPERTY FROM R2 TO C4 LOCATED AT 222 ST" AVENUE NW FOR OFFICE BUILDING SUBMITTED BY STEPHEN GASSER, APPLICANT WITH STAFF RECOMMENDATION AND A FAVORABLI; RECOMMENDATION (SECOND READING AND ADOPTION) RESOLUTTON NO. 12256 - A RESOLUTION AFPROVING SPONSORSHIP OF EARTHLY DELIGHTS (STATE THEATRE PROJECT) CHALLENGE LOAN APPLICATION TFIROUGH SOtJTIIWEST MINNESOTA FOUNDATION IN PARTNERSHIP WITH THE STATE OF MINNESOTA (c) LETTING NO. 13, PROJECT NO. 02-22 (SOUTH FORK CROW RNER BANK • STABILIZATION) -REJECTING $IDS ON IMPROVEMENT AND ORDERING ADVERTISEMENT FOR REBID CITY COUNCIL AGENDA -SEPTEMBER 9, 2003 (d) LETTING N0.2, PROJECT N0.03-02 (PLAZA 15 FARICING LOT) -REJECTING BIDS ANA REJECTING IMPROVEMENT Action -Motion to approve consent agenda b. PUBLIC HEARINGS - 6:00 P.M. (a) PRINCE OF PEACE SENIOR APARTMENTS, INC. PROJECT - AUTHORIZ11~1G AND PROVIDING FOR THE ISSUANCE AND SALE OF HOUSING FACILITIES REFUNDING REVENUE BONDS Action - Motion to reject -Motion to approve 7. COMMUNICATIONS R.F, VESTS AND PETITIONS (a) REPORT ON CONSTRUCTION OF PICNIC SHELTER AT HUTCHINSON MUNICIPAL AIItPORT No action. (b) ALTERNATNE PROPOSAL FOR DOWNTOWN SPECIAL SERVICE DLSTRICT NO. ] -STEVE COOK Action - 8. UNFINISIIED BUSINESS . (a) REDEVELOPMENT F~ REEMENT WITH EARTHI~ DELIGHTSS(STATEBIDTI3EA ER PROJECT) Action -Motion to reject -Motion to approve 9. NEW BUSINESS (a) CONSIDERATION FOR APPROVAL OF REMAINING VEHICLE REPLACEMENTS Action -Motion to reject -Motion to approve (b) CONSIDERATION FOR APPROVAL OF ENTERING INTO CONSULTING CONTRACTS WITH SRF CONSULTING Action -Motion to reject -Motion to approve (c) DOWNTOWN BUSINESS OWNERS TO DISCUSS SPECIAL ES RVICE D STRICTNO~1(VKAY PETERSON AND BILL ARNDT) Action -Motion to reject -Motion to approve lp. MISCELLANEOUS (a) COMMUNICATIONS • 11. CLAIMS. APPROPRIATIONS AND CONTRACT PAYMENTS (a) VERIFIED CLAIMS A CITY COUNCIL AGENDA - SEFTEMBER 9, 2003 Action -Motion to approve and authorize payment of Verified Claims A from appropriate funds (b) V$ItIFIED CLAIMS B Action -Motion to approve and authorize payment of Verified Claims B from appropriate funds 12. ADJOURN `J MINUTES REGULAR MEETING - HUTCHINSON CITY COUNCIL TUESDAY, AUGUST 26, 2003 1. CALL TO ORDER - 5:30 P.M. Mayor ar m Torgerson ca a the meeting to order. Members present were Jim Haugen, Duane Hoversten, Kay Peterson and Bill Amdt. Others present were Ken Merrill, Finance Director and john Rodeberg, Director ofEngineering/Public Works. 2. INVOCATION -Rev. Todd Ertsgaard, Oak Heights Covenant Church, delivered the invocation. 3. PLEDGE OF ALLEGIANCE 4. MINUTES (a) REGULAR MEETING OF AUGUST 12, 2003 (b) BID OPENING MIlVIJTES FROM AUGUST 12, 2003 Minutes were approved as presented. 5. CONSENT AGENAA (a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS 1. CITY OF HUTCHINSON FINANCIAL REPORT FOR JULY 2003 2. CITY OF HUTCHINSON INVESTMENT REPORT FOR JULY 2003 3. HUTCHTNSON AREA HEALTH CARE FINANCIAL REPORT FOR JULY 2003 4. HUTCHIN50N AREA HEALTH CARE BOARD MINUTES FROM 7ULY 1 S, 2003 5. HUTCHINSON HOUSING & REDEVELOPMENT AUTHORITX BOARD MINUTES FROM JULY 15, 2003 6. HUTCHINSON PLANNING COMMISSION MINUTES FROM JULY 15, 2003 7. PIONEERLAND LIBRARY SYSTEM $OARD MINUTES FROM JC1NE 19, 2003 (b) RESOLUTIONS AND ORDINANCES 1. RESOLUTION NO. 12241 - A RESOLUTION TO SELL AT AUCTION COMPUTER EQUIPMENT DECLARED UNUSEABLE BY THE CITY 2. RESOLUTION NO. 12244 -RESOLUTION TEMPORARILY SUSPENDING PARKING RESTRICTIONS ON JEFFERSON STREET DURING ARTS & CRAFTS FESTIVAL 3. RESOLUTTON NO. 12246 -RESOLUTION FOR PURCHASE 4. RESOLUTION NO. 12252 -RESOLUTION AUTHORIZING CITY OF HUTCHINSON TO APPLY FOR MINNESOTA OFFICE OF ENVIRONMI NTAL A55ISTANCE GRANT APPLICATION FOR COMPOST FACILITY ~ (~) CITY COUNCIL AGENDA -AUGUST 26, 2003 (c) PLANNING COMMISSION ITEMS 1. CONSIDERATION OF ANNEXATION OF 25.86 ACRES REQUESTED BY RODNEY RiEWER LOCATED IN HASSAN VALLEY TOWNSHIP ALONG JEFFERSON STREET SE WITH STAFF RECOMMENDATION AND A FAVORABLE RECOMMENDATION (WAIVE FIRST READING, AND SET SECOND READING AND ADOPTION OF ORDINANCE NQ. 03-354 FOR SEPTEMBER 9, 2003) 2. CONSIDERATION TO REZONE PROPERTY FROM R2 TQ G4 LOCATED AT 222 5~ AVENUE NW FOR OFFICE BUILDING SUBMITTED BY STEPHEN GASSER, APPLICANT WITH STAFF RECOMMENDATION AND A FAVORABLE RECOMMENDATION (WAIVE FIRST READING AND SET SECOND READING AND ADOPTION OF ORDINANCE NO. 03-355 FOR SEPTEMBER 9, 2003) 3. CONSIDERATION OF A CONDITIONAL USE PERMTI' REQUESTED BY FLORIAN THODE TO ALLOW OUTDOOR STORAGE ON PROPERTY IN THE I-1 DISTRICT LOCATED AT 327 HWY 7 EAST WITH STAFF RECOMMENDATION AND A FAVORABLE RECOMMENDATION (ADOPT RESOLUTION NO. 12242) 4. CONSIDERATION TO AMEND CONDITIONAL USE PERMIT TO ALLOW FOR A ZERO FOOT SETBACK FOR PAVING PARKING LOT LOCATED AT 225 3RO AVENUE NW REQUESTED BY FORD ROLFE WITH STAFF RECOMMENDATION AND A FAVORABLE RECOMMENDATION (ADOPT RESOLUTION NO. 12243) (d) CONSIDERATION FOR APPROVAL OF TRANSIENT MERCHANT LICENSE FOR GLINT KRAFT AT NATIONAL GUARD ARMORY ON AUGUST 28, 2003 (e) CONSIDERATION FOR APPROVAL OF SHORT-TERM GAMBLING LICENSE FOR VFW AUXILLARY ON OCTOBER 18 AND NOVEMBER 26, 2003 AT VFW POST 906 (f) CONSIDERATION FOR APPROVAL OF NON-INTOXICATING MALT LIQUOR LICENSE FOR ST. ANASTASIA CATHOLIC CHURCH ON SEPTEMBER G & 7, 2003, AT ST. ANASTASIA CATHOLIC CHURCH Ttem 5(c)1 was pulled for further discussion. Motion by Arndt, second by Haugen, to approve consent agenda, excluding Item 5(c)1. Motion carried unanimously. Item 5(c)1 had further discussion. Julie Wischnack, Director of Plamaing/Zoning/Building, presented before the Council. Mayor Torgerson noted that he felt the City should be held harmless if there are noise complaints in this area as it is surrounded by the Compost Facility and the Policc/Fire Training Station. Ms. Wischnack did state that the developers are aware of this condition and it was noted in the pre_development minutes. Ms. Wischnack stated that some sort of documentation could be included in the resolution. Motion by Arndt, second by Hoversten, to approve setting second reading and adoption of (<(~. CITY COUNCII. AGENDA - AiJGUST 26, 2003 Ordinance No. 03-354 for September 9, 2003. Motion carried unanimously. 6. PUBLIC HEARINGS - 6:00 P.M. (a) CONSIDERATION OF ]MPOSING SERVICE CHARGES FOR SPECIAL SERVICE DISTRICT NO. 1 Lisa McClure, Interim EDA Director, presented before the Council. Ms. McClure explained that this action would be to impose the service charges to fund the district. $.19/square foot is what is being proposed for commercial property. The calculations per property were determined by staff using the County Assessor's records. Ms. McClure distributed letters from property owners disputing their assessment amounts based on the calculations. Approximately 30 properties had adjusted square footage calculations. Rusty Feifer, Hoisington Koegler, explained the fundamentals of the resolution being presented. The cunent surchazge amount proposed is $.19/square foot and can be lowered, but not raised. These funds would create the total revenue for the district. This revenue can only be used within the Special Service District and only for those items listed in Ordinance 03-353. Tn addition, an advisory board would be created to provide recommendations to the Council. This service chazge will be in place for 15 years. The assessments would be placed on property owners' tax bill each year. An annual review would be required of the properties m the district to review any square footage changges. Once adopted, this resolution may be petitioned to be vetoed by the property owners. 35% ofthe property owners is required for the petition to be vetoed. Property owners have 45 days to submit a veto petition. The veto petition needs to have a specifac objection, signed by the property owner and include the parcel identification number. Followtng the adoption of this resolution, within five days notice must be sent out to the property owners explaining the veto process. Mr. Feifer continued to explain there would not be a need to veto the ordinance because the ordinance is poworless without revenue. Andrea Hetke, Dorsey & Whitney, presented before the Council. Ms. Hetke explained again that 35% signatures of the property owners is regwred for a veto. Rusty Feifer informed the Council that an Advisory Board could be established to review the objections on the assessments. Ms. Feifer also explained that the Advisory Board is just that, advisory to the Council. The Council still makes final decisions on the use of the funds. Mr. Feifer clarified that a property owner could present a benefit of objection annually. Kay Peterson clarited that in Section 2.04 the First sentence should read that "the service charge shall be a maximum of $.19 per square foot..." Mr. Feifer stated that this section will be reworded to reflect that the maximum is $.19 per square foot and will not exceed that. Sharon Gruenhagen, 27 Main Street, presented before the Council. Ms. C.ruenhagen recapped the points she made at the last public hearing. Ms. Gruenhagen stated that there are 129 parcels that are scheduled to be taxed in the district. 103 property owners arc involved in this district. 54 of these property owners have signed a counter petition tv oppose the district. 35 of these property owners signed the petition to beam the process and now 25% ofthem have signed the counter petition. More than 7% of the iax capacity has changed their minds of establishing the district. Ms. Gruenhagen gave examples of tax capacity. Ms. Gruenhapen stated that this project has divided the downtown businesses. Ms. Gruenhagen stated that during her discussion with other downtown property owners, she found that theyy are all progressive and would like to use their funds in the Downtown Association, if the fees would be lowered. Matt McMillian, Hutchinson Downtown Association volunteer, presented before the Council. Mr. McMillian clarified that the dues to the Hutchinson Downtown Association are $125 and goes up minimally per employee. Mr. McMillian illustrated examples ofvarious businesses that have moved their businesses outside of the downtown area and detailed revenue returns. Al Kramer, Ace Hardware, presented before the Council. Mr. Kramer expressed that he feels this is an ~~0.) CITY COUNCIL AGENDA -AUGUST 26, 2003 unfair tax and the business owners are responsible for enhancing their businesses. Skip Quade, 101 Park Place, presented before the Council. Mr. Quade expressed that he feels if nothing is done downtown, it could harm the downtown. Rich Peterson presented before the Council. Mr. Peterson expressed that he is opposed to the portion of the administrative portion of the revenues, but not opposed to the capital improvements. Jim Kuehl presented before the Council. Mr. Kuehl reviewed the services provided with these revenues. Mr. Kueh] feels that there aze still several unanswered questions. Mr. Kuehl suggested that this item be tabled until more questions can be answered. He further suggested that a downtown committee be formed to look at ways to progress the downtown area. Dwayne Peterson presented before the Council. Mr. Peterson stated that he had reviewed the Downtown Revrtaltzatton Master Plan final report. Mr. Peterson feels that the advisory board should establish the price per squaze foot annually and adjust it as needed. Mr. Peterson did voice that he is in support of this district. Keith Kamrath presented before the Council. Mr. Kamrath compazed this project to the failed school bond referendum that occurred in 2002. Mr. Kamrath voiced that he Feels that the downtown property owners agree that there may be a problem downtown, however this may not be the solution, Motion by Peterson, second by Hoversten, to close public hearing. Motion carried unanimously. Duane Hoversten sugggested that this item be tabled until more information can be researched. Mr. Feifer stated that the Council has six months to act upon this item. Jim Kuehl stated that he was informed that copies of the Master Plan were available for $25.00 and he was wondering if they could be available free of charge. Lisa McClure stated that this plan is available on line, in the EDA office, at the Plannirtg/Building desk and at the ppublic library, as well as paper copies available far $25.00 and a CD available for $15.00. Julie Wischnack explained that it costs staff approximately $100 to produce this plan. Sharon Gruenhagen iterated that ahnost half of the property owners are against the establishment of a district. Andrea Hetke again outlined the veto process. Rich Peterson staied that he feels that the citizens can veto the ordinance, per his interpretation of the ordinance. Andrea Hettke clarified that the ordinance does not specify the same veto provisions forthe ordinance as there is for the resolution. Motion by Hoversten, second by Arndt, to table this item until September 23, 2003, so further information can be reseazched. Motion carried unanimously. Lisa McClure stated that a revised notice will be sent out to property owners clarifying the action taken ionight. (b) LETTING NO. 5, PROJECT NOS. 03-12, 03-19 -EDMONTON AVENUE/TH 7 FRONTAGE ROAD -ADOPTING ASSESSMENT John Rodeberg stated that this project has been awarded and it includes three properties. Mr. Rodeberg outlined the project for the Council, The total project cost is $].7 million. Mr. Rodeberg explained how the costs are divided. Mr. Rodeberg broke down the assessments for each property owner. 4 ~c ~~ CITY COUNCIL AGENDA - AUGCTST 26, 2003 Mr. Rodeberg stated that nv curb and gutter will be conducted on Edmonton Avenue this yeaz, but the remainder of the project will be completed. TI37 is scheduled to be paved by September 15, 2003. Motion by Peterson, second by Arndt, to close public hearing. Motion carried unanimously. Motion by Arndt, second by Peterson, io approve adopting assessments for LettingNo. 5, Project Nos. 03-] 2 and 03-19. Motion canted unanimously. (c) CONSIDERATION OF VACATION OF EASEMENTS LOCATED AT 810 AND 820 HILLCREST ROAD NE BETWEEN LOTS 5 AND 6, BLOCK 1, WALNUT RIDGE ESTATES PLAT 3 john Rodeberg explained that these properties were replatted by Paul Betker a number ofyeazs ago for single family dwellings. Mr. Betker would now like to build duplexes. A citizen asked whether or not this was too close to the property lines. Mr. Rodeberg explained that the side property lines are not at issue, however it's the center property line which does not concern the other property lines. Motion by Haugen, second by Hoversten, to close public heazing. Motion by Haugen, second by Hoversten, to approve vacating easements located at 810 and 820 Hillcrest Road NE between Lots 5 and G, Block 1, Walnut Ridge Estates, Plat 3. Motion carried unanimously. 7. COMMUNICATIQNS, REQUESTS AND PETITIONS 8. UNFINISHED BUSINESS (a) E3TABL SHM NT OF SPECIAL SERVICE DISTRICT NO~1 (SOECON READIIVG~ ORIZING Motion by Haugen, second by Hoversten, to approve Ordinance No. 03-353, authorizing the establishment of Special Service District No. 1. Kay Peterson explained that she would be voting against the establishment of this district for two reasons. One being that the percentage of signatures needed to begin the process is very small and ont a one-one vote. Ms. Peterson also expressed that she feels this has divided the downtown property owners and there is not enough cooperation amongst them. Bill Amdt also explained that he would be voting against the establishment mainly for the same reasons as Ms. Peterson and that there are still too many unanswered questions. Rusty Feifer, Hoisington-Kae~ler, expplained that this action is to establish the district. However, if there ~s no revenue to support rt, the district would not be operable. Duane Hoversten commentod that much information has been presented over the last two yeazs and the process has been followed as prescribed by the State. Mr. Hoversten continued by saying that he would like to find a way to bring the property owners together on this subject. Mazlin Torgerson suggested tabling this item until more questions can be answered. Motion by Hauggen, second by Hoversten to approve Ordinance No. 03-353, establishing Special Service Distract No. 1. A roll call vote was taking with Haugen voting aye, Amdt voting nay, Peterson voting nay, Hoversten voting aye, and Torgerson voting aye. Motron carracd 3-2. (b) CONSIDERATION FOR APPROVAL TO ACCEPT PROPOSAL OF ABDO ABDO EICK & MEYERS FOR AUDITING SERVICES Ken Merrill, Finance Director, stated that he had done further research on what other communities are doing in reference to writing their own audit reports. Duane Hoversten stated he was satisfied with the 5 ~ta~ CITY COUNCIL AGENDA -AUGUST 2b, 2003 comparison numbers. Motion by Hoversten, second by Peterson, to accept the proposal of Abdo Abdo Eick & Meyers for auditing services from 2003 - 2D05. Motion carried unanimously. 9. NEW BUSINE95 (a) REVTEW OF COMPREHENSIVE & GENERAL LLABILiTY INSURANCE RENEWAL JeffBorkenhagen, Insurance Planners, presented before the Council. Mr, Borkenhagen reviewed the insurance coverages and premiums for the upcoming insurance benefit year. Overall, rates have risen 6.25%, which is very low. The City is expected to save $107,000 by staying at the same deductible of $25,000. Ken Meznll, Finance Director, clarified that the City budgets for this amount gfdeductible. Motion by Arndt, second by Hoversten to approve renewing comprehensive and general liability insurance coverage with a $25,000 deductible. Motion carried unanimously. (b) CONSIDERATION FOR APPROVAL OF GRANTING BUSINESS SUSBIDY AND REDEVELOPMENT AGREEMENT WITH EARTHLY DELIGHTS Lisa McClure, Interim EDA Director, presented before the Council. Ms. McClure requested that the Council pull this item and take no action as issues rase throughout the day and more questions need to be answered. This item was pulled and no action was taken. (c) DATE OR TAXESS PAYABLE 004 NO.12249 - SETTING TRiJTH IN TAXATION HEARING Motion by Haugen, second by Peterson, to set Truth in Taxation hearing For December 2, 2003, at 5:30 p.m. in the Council Chambers. Motion carried unanimously. (d) CONSIDERATION OF RESOLUTION NO. 12250 -SETTING 2004 PRELIMINARY TAX LEVY FOR CITY OF HUTCHINSON Ken Merrill stated that these numbers would be used for the preliminary tax statements that are sent out prior tothe trnth-in-taxation hearing. This is an increase from the 2003 tax levy, partly because of the reduction in state aid dollars as well as an increase in debt service dollars. This levy amount cannot be increased but may be decreased. John Rodeberg reminded the Council that the general fund is down, however the levy has mereaded due to other conditions. Motion by Peterson, second by Arndt, to approve setting 2004 preliminary tax levy for the City of Hutchinson in the amount of $4,780,880.00. Motion tamed unanimously. (e) CONSIDERATION OF RESOLUTION NO. 12251- SETTING 2004 PRELIIvIINARY TAX LEVY FOR SPECIAL TAXING DISTRICT HUTC1~iINSON REDEVELOPMENT AUTHORITY Motion by Hoversten, second by Haugen, to approve setting 2004 preliminary tax levy for Special Taxing District Hutchinson Redevelopment Authority in the amount of $87,72D.00. Motion carried unanimously. 10. MISCELLANEOUS Melissa Starke, Administrative Secretary, explained that at the last Council meeting the Council had approved Resolution No. 12240, authorizing the sale of surplus property at auction. Ms. Starke noted that an additional item had been added to the list of items to be sold, and therefore asked for Council's approval of the revised list. . Motion by Peterson, second by Arndt, to approve the revised list of items to sell at auction as attached to Resolution No. 1224D. Motion canned unanimously. 6 ~~~.) CITY COUNCIL AGENDA -AUGUST 26, 2003 (a) COMMUNICATIONS r John Rodeberg explained that the bid opening held August 12, 2003, for Letting No. 2, Project No. 03- 02 brought in one bid which was 30% higher than estimated. Mr. Rodeberg requested that the Council reject this bid and the project will be readvertised at a later date. Motion by Haugen, second by Hoversten, to reject the bid for letting No. 2, Project No. 03-02. Motion carried unanimously. John Rodeberg also infornted the Council that at an earlier meeting the Crow River Channel Protection project, Letting No. 13, Project No. 02-22, was discussed and approved, however it was delayed due to concerns of high water. Due to current conditions and the amount of time that has lapsed, Mr. Rodeberg requested of the Council that the bids be rejected and to authorize the rcadvertisement far hods an this project. Motion by Peterson, second by Huverstcn to reject bids and authorize readvertisement for bids on the Crow River Channel Protecton project, Letting No. 13, Projcet No. 02-22. Motion carried unanimously. John Rodeberg updated the Council that the power outage yesterday was due to a line break near the hospital. This line may not have been appropriately marked by Gopher State One. John Rodeberg also explained that the 2"'~ Avenue block in front of Park Elementary should be complete by September 1. However, the Dale Street/Roberts Road intersection will probably still be closed. Bill Arndt suggested that parking issues will need to be addressed i f alternate routes are used. Galen Houk addressed the Council in regard to the Riewer annexation (Itern 5(c)1). Mr, Tivuk stated that he has concerns about being annexed in the future due to being sarrounded by annexed properties. Mr. Houk expressed that he has no interest in being annexed any time in the near or distant future. John Rodeberg suggested that an orderly annexation agreement be put in place with the Houks and the City. This agreement would outline unknowns and address issues as to why/how the city would annex. Mr. Houk would like to have an agreement in place as to have a ccrtamty of some sort. 11. CLAIMS APPROPRIATIONS AND CONTRACT PAYMENTS (a) VERJEIED CLAIMS A Motion by Hoversten, second by Peterson, to approve and authorize payment of Verified Claims A from appropriate funds 12. ADJOURN With no further business to discuss, the meeting adjourned at 7:45 p.m. C~ u~~~ MiNUTF.,S BID OPENING STUMP REMOVAi, AUGUST 25, 2003 Present: Gary Plotz, City Administrator and Melissa Starke, Recorder. Gary Plotz, City Administrator called the bid opening to order at 2:15 p.m. Mr. Plots dispensed with the reading oCPublication No. 7085, Advertisement for Bids, Stump Removal. The fallowing bids were opened and read: Total Tree Service Bid Amount 5cction 1: $4.00/inch Section 2: $3.60/inch Section 3: $3.20/inch Diamond 5 Construction Bid Amount Section 1: $1.75/inch Section 2: $1.25/inch Section 3: $1.00/inch Fenske Stump Removal Bid Amount Section 1: $1.75/inch Section 2: $].15/inch Section 3: $].DO/inch T'he bid was referred to staff for review. The bid opening adjourned at 2:18 p.m. Marlin Torgersvn, Mayor ATT);ST: Gary D. Plotz, City Administrator ~J ~~ ~~~ .X~~~~^tr~ir~,~ F~a~xt~t~ b~qr ~jc i 'dt 1)f?S[' ~„ .,.~. _ ;~9~ f-:~IU~CJ'I°YA~.I~E~~91NICaL~L _ _, _ q~'~a~ 4~~SIG~~NTV,4~ ~t~a"1C~ C~2v ~dIC~Eh9~lAL'~J1N~wt~ k~~"L.~A~~UN',-~. f:~2~ E~~A~"ATtlt~N' c~'~t~ '~i• rJ p r~ T'r,r• ~l~t~ ~rtr~r~rli u~ ~rr~~u ~r„ '~J.~ - _ 1 ~, C:I.a.U~M - ~ nn ~ r~°~ ~ r..~~~ EMc~L9~l{~~k Sli~r~ U ~+"' k: cl~~Li ~7`~ -~s=1r~F ~'~PF21ftVKLE~ P~~'Bu1AT ~~D1 ~ ~J;~ rnrvr ,r~ ~~a.,Cra1CtW~ ~VSV~I-E-FAG~11L'r" C1E'7H,t_ r1Ef~~ IrWt~L~-~Hfv1d~.Y A~f,~,ti~NFr~u _._._.. Tk~RE~ ~ GU~aTC~h~~~ff~ ~E~V'lw~ ~2Fs C~.!SE-9E~ ~l+7G~7F~51f7('N'TIA~ aaa _..._ ~~~SI~~N~Ia~ w,rarnE ~,~I~Irpc~r~~ ~A:;~ I-'.~SIC~EfJ Flrll_ r ~ARA~;E hC~C3~ TI{ ,NS ;::,fA} ITFM~: ~~_:~rPb~~ ~~,'~~spar ;try ~ ~ r,~aaaa~!..r '~~ 6W~^~~~er'o~',~''Ar~m~~rac~ b~~rnadPs ~rar P~~ naranff~ 5' ~G~ p~ __ I ~, ~.a~~ ---..- ~' _ ~.a~~ _ _ _ ~~.t7r~ r . f7.~~ _ ~ 5; mmm .....~. $t~ G1 l__ "3 ~t7 [D ~. ~~a,~ .m.~ ,~._.~„~~ _......._ 1 ~i~1'~,~~<<~~0_~"~C~ r 7 7 , ~~`.~~ ~~~1u.Gi, .,. d i _ ,a5~i~.~;u __ __ _.._ ~ ~ ~~,o~r~.~c _.....-- r ~ ~~;.~ ..~ Minutes Hutchinson Public Library board June 23. 2003 Present: John Hassinger, Julie Jensen, Kay Johnson, Larry Ladd, Connie Lambert, Kay Peterson (Counciq, Newt Potter, Mary Henke (Librarian) Absent: None The meeting was called to order by President Connie Lambert. The minutes from the April 28 and May 27, 2003 meetings were reviewed and approved. REPORTS Mary reported The following information from the Pioneerland Board meeting of June 19, 2003. 1. 2004 budget passed as presented 2. Voted down employment contract for head librarians 3. Passed 5 year strategic plan 4, Passed grant policy 5. Deliveries reduced from 3 To 2 times per week OLD BUSINESS 1. Mary provided updates on remodeling project: lighting fixtures are in, fans in place, carpeting installation between July 7-15 causing library closing for a few days, waterproofing to be done on external wall as weather permits 2. 2004 budget update-no word at this time from city or county 3. Chamber of Commerce contacted about date for 100 year anniversary, pate, set for Tuesday, June 22, 200b. NEW BUSINESS 1. Energy conservation grant was denied. Some work will need to be done to repair air conditioning in children's section of the library. Mary will contact someone to look it over. 2. Motion made and seconded to purchase computer for operation of software program for the Mardag grant. Passed. Money from Hutchinson Community Foundation to be used for purchase. 3. General discussion of recent Supreme Court decision regarding Internet filters, children, and pornography 4. Motion made and seconded to cancel July meeting. Passed. Next meeting: August 25 at 4:30 at Public Library Meeting adjourned. John Hassinger, Secretary 5(~a~- C~ Memo To: Mayor and City Council Members From: brad Emans, Fire Chief Date: 9/7103 Re: Monthly Update on Activities of the Fire l7epartment The fire department responded to 42 general alarms in the month of August. Example of a few of the calls: 1. A discarded cigarette on a deck in an apartment building started the deck on ire, damaging the outside wall and floor joist of the building. This is the second apartment house deck ire we have had this year. I would have to say we have bean lucky compared to Edina, Brcoklyn Park, and Eden Prairie that lost almost entire apartment buildings from the same cause. 2. We responded to an abandoned house ire in the Lynn Township area. I am pretty sure this is the work of the same person that is currently working the Meeker County area burning abandon rural houses. 3. We responded to three mutual aid auto extrication calls from our neighboring cities. 4. We responded to a microwave fire that caused an estimated $10,000.00 damage to the kitchen due tv the heavy smoke damage. 5. We responded to an arson fire at the Hutchinson Migh School where blankets were set on ire. 6. We responded to a stove fire in an apartment building that was caused 6y unattended food on the stove. The fire caused approximately $2,500.00 damage and required the family to be put up in a motel by the Red Cross. This is the breakdown of the calls for the month: City: Residential 6 Commeroialllndustrial 6 Multi-Family 3 School 2 Carbon Monoxide 3 Hazardous Material 8 Vehicle 1 Medical 2 Mutual Aid 3 Rural: Rescue 2 Medical 3 Grass Type 1 Residential 2 ~0.~ Drills! Meetings /Other Information . SCBA Monthly maintenance • We worked with the Cosmos and Silver Lake fire departments on level 1 and level 2 bums at our training site • McLeod County Fair: We provided medical, rescue, and fire protection for the two moto-cross races, two demolition derbies, and the tractor pull. • Fire Department Fair booth: Each year we trade our service at the fair events for 4 booth spots at the Administration building where we have our fre awareness booth. This year firefighters donated 68 hours working at our booth. We have held our second meeting with the other public safety entities on our "Time and Distance" problem. We are in the process of scheduling visits of other cities that share emergency operation buildings. • Fire Prevention: 1. We participated in "National Night Out" with the police department. We attended t2 different neighborhood gatherings. The police department did an outstanding job of organizing this years event. 2. We conducted ahands-on fire extinguisher training class for all of the employees at New Dimension Plating. 3. We gave a fire department up-date of activities far the members of the Kiwanis • Page 2 J f ~~~3 EALANCE ..fULY 31, 03 _~~-~ __ _ _ _ __ _ _ _ __ _ w r ^ w 7gTAL_x_r w ~ _ _ ASSETS ~ UTILITY F'LANT - AT COST LAND E LANE RIGHTS 609, 41 L.54 DEPRECIA81_E UTILITY PLANT 70,802,924.63 ~ TOTAL UTILITY PLANT. ?1,412,335.17 LESS ACCUMULATED DEPRECIATION) {25,49fi,485. L9) + _ TOTAL ACCiR'kULATED DEPRECIATION _ _ L25, 496, 486,193 _ CONSTRUCTION IN PROGkE55 i2, 888, 517.92 ~ _ _ __ _ ._. __ _ _ _TOTAL CQNSTRUCTIC'1J__ID! PR_OGRESS__ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ L2.869, 517.9? . _ .. _ TOTAL UTILITY PLANT DEPREC VALUE ~ 57,804,367.90 ,{ RESTRICTED FUNDS 6 RCCOUNTS FUTURE EXPANSION A DEVELOPMENT 15,308,309.24 < 2003 REFUNDING FUND .._ 4,738,851.28_...... BOND RESERVE 2003 831,533.43 TOTAL RESTRICTED FUNDS S ACCOUNTS 26,878,693.95 [ CURRENT A ACCRUED A83ETS CASH iN BANN 2,200,47x.27 .. _ _ _ ACC9lNlT5 RECEI VALUE _ _ .. _ __ _ __ _ _ __ _3 X167,702.23 _. __ _ ACC~iNTS R£CEIVAY~E - CYCL£ BILLING 580,816.17 INVENTORIES 5.203, 740.65 ~ ~ - PkEPAI11 iNS'~RfiNCE...__ - - - - - - --- -~ ~ ~_-_~ ~ ~~~_- ___ _9.6,956.86 _ _ _ _ _ _ _ ~ _ ~ -_ _-~ _ _ _ CLEARING ACCOUNT 445.70 SALES TAX RECEIVABLE fi98. 944.66 ~ _ ____._._ TOTAL C[JRRENT_6 ACCRUED ASSETS ____ _ ....._ __- _ - - -- _- __ _._ 7 948 L83.54__._.. _ .__.-_ - -_- DEFERRED CHARGE ~ ~ 80ND DI3000NT 2003 ___ _ _ .._ _ _ _ _ _ _ _ 670 537.50 _ _ _ ___.__ _ __ .__ _ _ _ _ _ ___ _ _ TOTAL DEFERRF_D CHARGE 670,537.50 + TOTAL ASSETS _ _. _ _ .. . B7, 30i~ 782.84 _ _ . j" f f 1 i 1 1 i 1 3 1 3 1 1 } ~~ V' -~. ~ H ?003 ;SS 11UNLCIPRI_ EQUITY & LIABILiTIE8 TkUNICIf'fiL E6~tIiY_ _ _ _ _ _ N,UNICIPAL EQUITY 41,025,034.4'7 CONTRIRLITED EQl1TTY 5,861, OD7.24 _ _UNAPPROPRFATED .$ETRLNE_D. F__HRN~NG~^_ _ _ __ . _ .._ _.._ _ _ _ 2.015, 229._2_2 _ TOTRL t-fIINICIFAL EQLJFTY 48.9Q2, 27U.98 _ __ LANG TgRM__l IA$~1..1_T I.ES-NET. pF _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ CURRENT MATURITIES LEASE PAYABLES 12,572.46 2001 8 Rca.NDB _ 4,OL0, 000.00 2003 80ND5 31,725,000.00 70TRt LONG TERM LIRBILITIES 35,747,572.46 CONSTR COtiTRACTS ~ ACCTS PRY (iETRIN TUTAt_ CONSTRUCTION & ACCTS PRY .OU CURRENT & ACCRUED LIABIL'iTIES ACCOIRlTS FAYASLE 2, 2'79, 316.25 iN7EREST _ACCRl1ED ._ _ _ ... _ _ 48, 9L5. 43 _ ACCTS PAYABLE T6 CITY OF HU'iCHINSfiN 73,500.00 ACCRUED VACATION PAYABLE 196,976.29 ACCRIIED_ i5F_DICAL FUND _ _C 162,839_94).. _ _ RCCRUED REC PRYIiENT 28,864.42 CitS70P9ER DEPOSITS 76,430.00 07l~R Ct9ZRE'J_T E ACCRlJED LTR8ILI7I_E_S_ _ ____ _ __ _ __ __ _ _ _ _ _SS3,777, bi. _ _ __ _ ___ _ ____ __ __ _ __ TOTAt'CURRENT G ACCRUED LIAR 2, 651,439.4., _ TC37FtL i~[1NICFPA~ EQUITY ,1 LiAB _ _ _ _ _ _ 87, 301 z78 _.89 _ _ _ _. STATEMENT OF INCOM~XPF_NSES JULY 3i, 3 PREV F.OUS C:LSRFiENT Sl1DGE'f ED _ ". _ RkJI3GET_ YEAR 70 DATE YEAR TO DATE YEAR TO DATE DEVIATION !COME STATEMENT .. if~f_'RATIhi[- REY~NI iF ~ QLES - ELECTRIC E~iERGY S . - 8,8°1;,387.36 - _ 10,957,410.49 10,957,578,36 (155_871 55,470,247,58 0 , S ES FOR RESALE 49D,164.94 179,785.00 180,000.00 [235.001 ' 750, 0(~i0.0 AL NET INCOME fF17M OTHER SOURCES 68,837.57 8:?,610.75 81,900.00 75 710 . 9¢,DOO.CdO 000 00 798_50 b 6,510.00 8,800.00 10.00 . 13. SECURITY LIGHTS , 1,901.06 1,649.00 1,720.00 (71.001 4,000.06 POLE RENTAL 4.875,188.75 6.422,571.70 5,421,859.71 711.94 7,533,857.00 SAf_EE _ GRS VENUE " 14,299,(]79.3.2 17.650,516.95 17,849,555.07 4fi6.,8B 23.861,104.58 .E TO7At OPERATING i OPERATING EXPENSES " PRaDUCTION OPEFATION ~Ftpl>tiJCTIiNi MAINTENANCE PURCHASED POWER TRANSMISSION OPERATION TRAN5MI3520N MAINTENANCE _ ELECTRIC DiSTKIPUT ION OPERATION ELECTRIC DISTft iBUTION MAINTENANCE PURCHASED GA5 EXPENSE _ GAS TRANBMI_SSItlN OPERATION GAS TRANSMI55YON MAINTENANCE GA5 DI5TRI8UTION OPERATION _ GAS DI57ftI8UTIFN+I MA Ii•ITENANCE CUSTOMER ACCOUNTING 6 COLLECTIONS ADMINF5TRATIYE h GENERAL E%PENSE5 __ DEPRECIAT If]A! TOTAL (]PEFiATItdG EXPENSES OPEfiATING IkCOPfE OTHER INCOME ____ OT€1ER - NET I NTERE5T INCOME HIS( INCOME GAIM__ON DISPOSAL - ELECTRIC ."___ GAIN ON DISPOSAL - GA5 MI;r+C INCOME - GAS WELLS TOTAL OTHER INCOY4E OTHER E%PENSES _ ___ MISG EXPEN!SE5 INTEREST E%PEHSE TOTAL OTHER EXPENSES GONTRI ~3T ION 70 C27Y TOTAL CONTRIBUTION TO CITY ~!C]N-OPERATING I1~ICOME V~ P\ . n" _- _.. .. _- 562,401.64 268,910.71 3,6^c8.538.I8 154.88 133,962.64 230,14)4.46 112,770.44 5,275,181.91 .00 .00 2i:,, 927.52 55,123.:9 202,814.'77 937,170.91 1,114,168.70 12,937,205.75 1.381, 8'72.38 1.393,075.00 206,705.80 5,753,038.06 542.33 207,821.13 271,354.43 113,477.59 5,828,148.87 .00 .90 229 , 8''9.98 69,581.78 207,595.59 865, 45fi.20 L, 435,000.05 16,381,220.71 1,269,295.24 i, 391,262.43 235,278.45 5,752,741.25 291.55 6,707.95 25.6,251.82 90,994.80 5.828, Lfi5.93 2,333_20 2,824.95 250,662.'75 59,525.77 202,259.59 972.095.33 I,43A,918.08 16,192,563.78 1,457,392.29 (94,813.57) 24,576.b5 [244.85) 149.32 (201,113.3.8) E55,102.61) [22,482.797 19.26 2,333_20 2,824.85 217,832.78 [10,058.01) f5, 337.30] 106,639.13 (82.85) (589,05d~. 933 f 188,096.95] i ANNCIAL HiJDGET 3,146,012.73 395,500.00 h, 207, 75_'"1.00 500 . Ci 0 11,500.00 439,313.93 155.000.90 6,063,527.18 4,000.06 4,500.00 429,732.15 502.050.00 iii, 1(')5.93 3,831,505.00 2,450,060.00 21,563,397.42 2.297,706,66 33,103.74 48,947.80 34,998.00 13,949_80 60,OOO.GO 81,959_16 532,56 7.85 58,330.00 74,337.85 100,000.00 34,883.9'7 145,967.71 20,415.50 124,692.21 35.000.06 .00 1,034,085.68 .f30 S,t)34,Oh5.65 .C')0 .00 136,557.58 150,080.00 (53,442.423 550,0(30.00 71,738_27 2,648.50 .00 2,648.54 .00 221,675.54 5,494,995.50 253,743.50 5,236,251.60 345,000.00 94,803_66 87,756.85 .00 [87,756.85) .00 251,287.`.'12 170,405.27 167,556.42 [8,846.85) 247,550.00 348,671.18 238,162.12 581.558.42 [76,803.70) 247,550.00 490,400.00 514,900.60 53.4,882.60 (37.40) 982,000.(30 490,400.00 514,908.00 514,882.50 (37.40) 982,600.00 (814,796.041 745,932.98 _ (412,577.52) 5.139,810.50 (884,580.007 747,076.32 2,016,229.22 1,044.714.77 971,55.4_45 7,413,158.66 i i I 1 t f i PUBLICATION NO. ORDINANCE NO. 03-354 AN ORDINANCE EXTENDING THE CORPORATE.. LIMITS OF THE CITY OF HUTCHINSON TO INCLUAE CERTAIN LAND OWNED BY ROANEY AND ANN RIEWF,R (25.86 ACRES) ABUTTING THE CITY OF IIUTCHINSUN PURSUANT TO MINNESOTA STATUTES 414.033, SUBDIVISION 2(3) WHEREAS, the ordinance is being amended to exclude the City of Hutchinson property tv properly follow the state statues. WHEREAS, Rodney and Ann Ricwer, properly owners have Filed a petition for annexation of certain land, as legally described below: The Northwest Quarter of the Southwest Quarter of Section Eight (8) in Township One Hundred Sixteen (116) North of flange Twenty-nine (29) West NOW KNOWN AS -Lot Seven (7) of"Auditor's Plat ofthe South One Half of Section 8 Township 116 North Range 29 Wcst of the 5`" P.M." ALSO Beginning at a point on the F..ast boundary line of Section Seven (7) in Township One Hundred Sixteen (t 16) North nfRange Twenty-nine (29) West 5.25 chains South ofthe Quarter Corner ofthe East boundary line . of said Section 7; thence West 13.35 chains to the center of the Hutchinson and Crlencoe public hi~lrway; thence Southeasterly along said centerline to a point which is 16.72 chains North and 4 chains West of the Southeast comer of said Section 7; thence East 4 chains to the East line of said Section 7; thence North along said East line to the point of beginning. NOW KNOWN AS - L.ot Ten (10) of "Auditor's Plat of Section 7, Twp. 116 N., Range 29 W" excepting from said Lot 10 the Snuthcrly 182.4 feet thereof. ALSO the North 39 feet of the Southwest Quarter of the Southwest Quarter of Section 8, Township 116, Range 29 NOW KNOWN AS -Lot Six (6) of "Auditor's Plat of the South One Half of Section 8, Township 116, North of Range 29 West of the 5`" P.M." EXCEPTING from the above described tracts the following described tract, to-wit: That part of I,ot Ten (10) of "Auditor's Plat of Section 7, Twp. 116 N., Range 29 West" AND That part of Lot Seven(7) of "Auditor's Plat of the South One Half of Section 8, Township 116 North Range 29 West of the Si" P.M" AND that part of Lot Six (G) of "Auditor's Plat of the South One Half of Section 8 Township 116 North Range 29 West of the 5`" P.M." described as follows, to-wit: Commencing at the Southeast Comer of said Lot 10; thence North 1 degree 47 minutes 18 seconds East, assumed bearing, along the East line of said Lot 10, 182.4 feet to the actual point of beginning of the tract to be described; thence Norih 89 degrees 35 minutes 28 seconds West, parallel with the South line of the Southeast Quarter of said Section 7, 365.98 feet to the centerline of County State Aid Highway No. 25; thence North 25 degrees 09minutes 53 seconds West, along said centerline, 300.00 feet; thence South 89 degrees 35 minutes 28 seconds East, parallel with the South line of the Southeast Quarter of said Section 7, 502.00 feel, to the East line of the Northwest Quarter of the Southwest Quarter of said Section 8, 48.67 feet; thence south ]degree 47 minuses 1$ seconds Wesi, parallel with the East line of said Lot 10, 272.13 feet to a line drawn 39.00 feet South of and parallel with the South line of the Northwest Quarter of the Southwest Quarter of said Section 8; thence North 89 degrees 53 minutes 17 seconds West, along said line, 48.67 feet to the East line of said Lot 10; thence North 1 degree 47 minutes 18 seconds East, along said East line, 1.44 feet to the actual point ofbeginning. ~~4~ Ordinance No. 03-354 Riewer property September 9, 2003 Page 2 W1lERFAS, the Riewers indicate that they are tlae sole owners o£ the property, that the property is unincorporated, abuts the limits of the City of Hutchinson, is not included within any other municipality, is not included in any area that has already been designated for orderly annexation pursuant to Minnesota Statues 414.0325, and is approximately 25.86 acres in stze. NOW, THEREFORE, the City Council of Hutchinson, Minnesota does hereby ordain: AND ALSO: A 33.0 foot wide strip of land lying westerly of and adjoining the easterly line of Lot 24 of the Auditor's Plat of Lot 15 of the Auditor's Plat of Section 7, Township 166 North, Range 29 West, McLeod County, Minnesota. The north line of said strip of land being the south line of the North 150.00 feet of said Lot 24 and the south line of said strip of land being the south line of the North 4D0.00 feet of said Lot 24. ANP ALSO: A 33.00 foot wide strip of land lying westerly of and adjoining the easterly line of Lot 24 of the Auditor's Plat of Lot 15 o f the Auditor's Plat of Section 7, Township 116 North, Range 29 West, McLeod County, Minnesota. The north line of said strip of land being the south line of the North 400.00 feet of said Lot 24 and the southerly line of said strip of land being the northerly line of CITY OF HLTTCHTNSON STREET RIGHT OF WAY PLAT NO. 7, according io the recorded plat thereof. be annexed to the City of Hutchinson, and SECTION 1. The City Council hereby determines and Fnds that the property abuts the municipality, that the area to be annexed is 60 acres or less, that the property is not included in any area that has already been designated for orderly annexation pursuant to Minnesota Statues 414.0325, that the municipalityhas received a properly prepared Petition for Annexation from all of the owners of the property, and that the Pehlion complies wrth all of the provisions of Minnesota Statutes 414.033 Subd. 2(3). SECTION 2. The property is urban in nature or about to become so. L~ SECTION 3. The corporate limits of the City of Hutchinson are hereby extended to include the Property and the same is hereby annexed to and included within the City of Hutchinson as if the property had originally been part thereof. SECTION 4. The City Administrator is directed to file copies oftlris ordinance with the Minnesota State Planning Agency, Hassan Valley "Township, the McLeod County Auditor, and the Minnesota Secretary of State. SECTION 5. This ordinance takes effect upon its passage and publication and the filing of the copies as directed in Section 4 and approval of the Ordinance by the Minnesota State Planning Agency. Adopted by the City Council this 9s'day of September, 2003. ATTEST: Gary D. Plotz City Administrator Marlin D. Torgerson Mayor ~~~~1 C Hutchinson City Center Ill llaxwn Slreel SE Hutchinson, MN 55350.2522 320.587.5151/Fax 320.234-4240 MEM~.RANDUM DATE: August 21, 2003 TO: Hutchinson City Council FROM: Hutchinson Planning Commission SUBJECT: CONSIDERATION OF ANNEXATION ]3Y ORDINANCE AS REQUESTED BY RODNEY RIEtiVER, (25.86 ACRES) Pursuant to Minnesota Statute 414.033, Rodney and Ann Riewer, have petitioned to annex approximately 25.86 acres of Section 8 of Hassan Valley Township. HISTORY The applicant has petitioned the City of Hutchinson to annex approximately 25.86 acres located in Hassan Valley Township for the development of residential lots. An annexation request was withdrawn for this property in July of 2000. A conceptual pxedevelopment meeting was held with Farr Development on July 18, 2003. They indicated a density of approximately 4 units per acre were planned for the area. Discussions centered around services to the area, City uses across the river from this development, and the flood plauz levels for the property. FINDING F FA 1. The required petition was submitted. 2. Notices were trlailed by certified mail to the surrounding property owners as well as published in the Hutchinson LeadEr on Thursday, August 7, 2003. 3. The proposal is in conformance with the requirements for annexation. RECOMM NDATION The Planning Commission voted unanimously to recommend approval of the annexation request noAng staff recommendations as follows: Staff recommends approval of the annexation by ordinance because the property is adjacent to the municipal boundary on the northeastern portion and the property will have access to sewer. The applicants should be aware that until municipal water is available to the property, development may not occur- There will also be an assessment for the sanitary sewer line (excluding actual costs Fox connecting to the sewer line.) Respectfully submitted, Dean Kirchoff, Chairman Hutchinson Planning Commission Cc: Rodney and Ann Riewer, 1445 Jefferson Rd Farr Development, Lucinda Gardner, 3025 Fiarbox Suite 317, Plymouth MN 55447 Pooled on rxycleA paper ~~~ ~ >~. .x ~. ,~ ,: ~ ~, s s a o io°~ » Munlctpal . A , x 2 e a § Boundary a s ~. sT § y 5 P x s ' ~ _ 6 ' t ~•, x _ 4 ." f~1..`Li `ti S a ' : ] s`i-:~ ~ y - a .. .. Ye 33 ~=~ i f ~y ; 'i ,{~ . IXRSI~E CItt WAITS -~ ". _:c36~^... k.a!'z~.>=4~ Y:; ~: 'x .-.- . EIU~RLN nEH I Jefferson Street f Riewer Property Appropmatety 25 Acres \~ Q CC CITY OF HUTCHINSON PLANNING STAFF .REPORT • To: Hutchinson Planning Commission From: Planning Staff: Brad Emans, Dolt Moon, Don Nelson, Lisa McClure, Jake Wegner, Jean Ward, John Rodeberg, P.E., John Webster, Jnhn Olson, Lenny Rutledge, Barry Greive, Mark Schnobrich, Marc Sebora, Gary Plotz, ICen Merrill, Jim Popp, Dave Erlandson, Dirk Nagy, Jnlir. Wisrhnark, AiC'P, and Rnnnie Ranrnet~ Date: August 4, 2003 -Meeting Date August 19, 2003 Re: Annexation -Rod and Ann Itiewer Brief Description The applicant has petitioned the City of Hutchinson to annex approximately 25.86 acres located in Hassan Valley Township for the development of residential lots. An annexation request was withdrawn far this property in July of 2000. A conceptual predevelopment meeting was held with Farr Development on July 18, 2003. They indicated a density of approximately 4 units per acre were planned for the area. Discussions centered around services to the area, Ciry uses across the river from this development, and the flood plain levels for the property. (The attached map provides the location where the property line meets the city boundary.) GENERAL INFORMATION EaisL'ng Zoning: Property Location: Lot Size: Existing Land Use: Adjacent Land Use And Zoning: A-1 Agricultural 1445 Jefferson Street South Approximately 28 acres Rwal Residential Industrial to the east, agricultural surrounding property Comprehensive Land Use Plan: Low density single family Zoning History: The Shimek property to the west was annexed and platted within the past year. Applicable Regulations: MN Statues 414 Recommendation: Staff recommends approval of the annexation by ordiuance because khe property is adjacent to the municipal boundary on the northeastern portion and the . property will have access to sewer. The applicants should be aware that until municipal water is available to the property, development may avt occur. There will also be an assessment for the sanitary sewer line (excludittg actual costs for connecting to the sewer line.) L'c: Rod and Ann Riewcr, propery owners ~«~ C L Hutchinson City Center 111 Haxssn Street BE Hutchinson, MN 55350-2522 120.587.5151/Fax 320.2344240 M E M. [) R A N U CI M FROM: John P. Rodeberg, Director of EngineetXng/Public Works RE: Farr Development (former Rod Reiwer Property) DATE: 7/17/03 Issues related to the development of the above referenced property: 1. Sanitary Sewer connection will be from the South Area Trunk line, either in the NE comer of the property near the river, or in the NW comer of the property, on the east side of Jefferson Street. Line needs to be sized to serve property south of this property and east ofJefferson Street, per Comprehensive Plan. 2. Watermain shall be looped from the 8"DIP line on Jefferson Street south of Jefferson Court to the proposed 12" DIP line at Edmonton Avenue and Jefferson Street. 3. Storm Sewer requirements shall include the construction ofponding to meet NPDES criteria for the site. No areas outside of the immediate property are proposed to be served through this line. 4. Street Construction shall include a connection to Jefferson Street at Edmonton Avenue (proposed A-way stop). Reconstruction of Jefferson Street to urban standards is expected with development in the area. Limited access to Jefferson Street is proposed. 5. Other: a. "Trails are being planned on the north side of Edmonton Avenue and the east side of Jefferson Street. Internal sidewalk/trail for safe access to this system should be provided. b. Park Dedication: Land is not proposed for dedication in this area. A cash contribution, per City Ordinance, shall be made. c. Electrical Service shall be from Hutchinson Utilities. There will be an access fee of $800 per housing unit. . G:~PLANNII1G1Subdivision\F'arr -Engineering 7-17-o3.DOC Primed nn recycled paper - ~ / ~~ NOTES RIEWEJ; ANNEXATION CONCEPTUAL PREDEVJ;ZOPMENT MEETING Friday, Jrtly I8, ZOD3 8:30 u.m. Julie Wischnack commented on the location of the property between Jefferson St. and the Crow River Representatives from Faxr Development stated the property would be developed a residential subdivision at 4 units per acre of the developable property. There will be single and two family homes and possibly four family will be included in the development. Don Nelsen explained electricity will be available to Edmonton ]ate this summer. John Webster stated natural gas is currently on the west side of Iefferson St. Presently there is limited capacity to the cul de sac. He reported there is a line vn Sherwood St. which would increase capacity. This line would come down Edmonton Avenue when completed. Engineering has stated this could be Fall of 20D4. John Rodeberg stated they were bidding Edmonton Ave. today. He explained utilities could be in by October the street completed by July, 2004. He reported Edmonton Ave. and Jefferson St. are state aid roads. John stated the sanitary sewer will be available on the north end of the property. He explained the watermain shall be looped from the g" DIP line on Jefferson Street south of Jefferson Court to the proposed 12" D1F line at Edmonton Avenue and Jefferson Street. John stated a right turn lane into the development off of Jefferson will be required. Limited access to Jefferson Street is proposed. Reconstmction of • Jefferson Street to urban standards is expected with development in the area. John commented on the major trail system in the arcs. Internal sidewalk/trail for safe access to this system should be provided. Parkland contribution will be required and collected with the building permit fees. The property is in the electrical service territory which means an access fee of $500.00 per unit will be collected. Sewer and water access fees will cost approximately $2200 per unit. John stated he would prefer no cul de sacs and the roads could be 32' right of way. Ken Merrill commented on the bonding process. Lucinda Gardner stated they would provide a letter of credit. Lenny Rutledge asked about the density in the area. Mike Gair stated that has not been determined. John Olson commented on the City uses across the river. He reported there are the following uses: Wastewater treatment facility, compost facility, Law enforcement pistol range, Fire tower for Fire and Pnlice Department training. He stated the bio-solids facility is quite noisy. Sgt. Doug Johnson stated there is a state wide law enforcement training facility on the site. Tim Popp commented on access for emergency services. He stated a loop road is preferred and a water supply is necessary. Cal Lee stated there is telephone service on Jefferson St and will work with electric in a common trench. 7udy Flemming commented on the type of housing. Mike Gair stated it would be upper class market rate 5~~~ PUBLICATION NO. ORDINANCE NO. 03-355 AN ORDINANCE AMENDING THE OFFICIALLONING MAP OF THF, CITY OF HUTCIIiNSON FOR A PKOPEitTY TO BE KEZONF,D FROM R2 TO C4 LOCATED AT 222-5~"AVE. NW THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA ORDAINS: WIIEREAS, the following described real property is hcreby rezoned from R2(Medium Density Residential) to C4 (Fringe Commercial) as requested by property owner: LEGAL DESCRIPTION: Lots Three and Four (3 and 4) Stock Ten (10) in the Townsite of Hutchinson, North Half WHEREAS, the City Planning Commission and City Council have considered the effects ofrezoning this piece of property; WHEREAS, there are certain parameters that will make this rezoning appropriate for this area; THEREFORE; the City hereby officially rezones this property to C4 and it shall take effect upon publication of this ordinance; Adopted by the City Council this 9`" day of September, 2003. ATTEST: Gary D. Plotz City Administrator Martin D. Torgcrson Mayor >~ ~~ L DATE: August 21, 2003 Hutchinson Cit Center 111 Hassan Street 5E Hutchinson, MN 55350.2522 320-587-5151/Faz 320.234.4240 MEMORANDUM 7'O: Hutchinson City Council FROM: Ilutchinson Planning Corntnission SUSdECT: CONSIDERATION OF REZONING OF PROPERTY LOCATED AT 222-5~ AVE. N.W. EY STEVE GASSER, APPLICANT, FROM R2 TO C4 Pursuant to Section 6.05 of Zoning Ordinance, Chapter 11, Hutchinson Ciry Code, the Hutchinson Planning Conmdssion is hereby subnnitting its findings of fact and recommendation with respect to the aforementioned request for rezoning. HISTORY The applicant is requesting tv rezone property located at 222-5~ Ave. NW from RZ to C4 to use as an office building. The property is presently a vacant church building abutting a C4 district. Mr. Gasser is the prospective property owner. Eoth residential and commercial properties are found throughout the neighborhood. This property is adjacent to commercially zoned property. The property only has a gravel surface for parking and for access. The plans provide fora 50 x 50 foot paved parking lot area. The driveway access is required to provide 6 feet of setback from the property line. The parking requirements, if 2,000 square feet of space was used, would require 1 D parking spaces. FE~iDIN F FACT 1. The required application was submitted and the appropriate fee paid. 2. Notices were mailed tv the surrounding propelty owners as well as published in the Hutchiasen ~-eader on August 7, 2003.. 3. A public hearing was held at which there were no neighbors objecting to the request. R,>kCOMMENDATI~N The Planning Commission unanimously voted to approve the rezoning with the following requirements: Conditions of pavement, parking stalls, landscaping etc. will be added to the building permit or excavation pernnit, when requested. Respectfully submitted, IJcan Kirchoff, Chairman Hutchinson Pktnning Commission cc: Steve Gasser, 19776-2091h St. NW Ronald McClung, Iowa-MN District Tine Wesleyan Calvary Chtuch, P).O. Sox 485, Charles City IA 50616 r 1 L J Primed an recycled paper - ` S(.~ ~. CITY OF HUTCHINSON PLANNING STAFF REPORT • Tp: Hutchinson Planning Commission Prepared 13y: Planning Staff: Srad Emans, Dolf Moon, Don Nelson, Lisa McClure, Jake Wegner, Jean Ward, John Rodeberg, P.E., John Webster, Joha Olson, Lenny Rutledge, Barry Greive, Mark Scbnobrich, Marc Sebora, Gary Plotz, Ken Merrill, Jim Popp, Aave Erlandson, Dick Nagy, Julie Wischnack, AICP, and Bonnie Baumetz Date: August 4 , 2003 -Meeting Date: August 19, 2003 Applicant: Stephen Gasser, Applicant The Wesleyan Calvary Church, Property Owner REZONING AND SKETCH PLAN REVIEW Brief Description The applicant is requesting to rezone property located at 222-5'" Ave. NW from R2 to C4 to use as an office building. The property is presently a vacant church building abutting a C4 district. lvlr. Gasser is the prospective property owner. GENERAL INFORMATION Existing Zoning: R2 (Single and Two Family Residential) Property Location: 222-5's Ave. NW Lat Size: 1.08 acre Existing Land Ilse: Church building Adjacent Land Use And Zoning: C4 (Fringe Commercial) to the West and South R2 (Single and Two Family Residential) to the North and East Comprehensive Land iTse Plan: Traditional Residential Zoning History: The Church was built in 1975 and is presently vacant. Applicable Regulations: Section 6.05 Rezoning SPECIAL INFORMATION • Transportation: 5`s Ave. NW Parking: Office building less than 20,000 square ft. -- 5 spaces per 1,000 sq. ft. J~~~~ Rezoning Request Steve Gasser, applicant . Planning Commission- August 19, 2003 Page 2 Analysis and Recommendation: Staff believes that this area has a mixture of uses. Both residential and commercial properties are found throughout the neighborhood. This property ie odjnoent to oommcrcially xoncd propctty. The proyel ly utdy has a gravel surface for pazking and for access. The plans provide For a 50 x 50 foot paved parking lot area. 'The driveway access is required to provide 6 feet of setback from the property line. The pazking requirements, if 2,000 squaze feet of space was used, would require 10 parking spaces. Staff would recommend approval of the rezoning because the adjacent 2.oning of commercial is appropriate for this property. (Conditions of pavement, parking stalls, landscaping etc. will be added to the building permit or excavation permit, when requested.) Cc: Steve Gasser, 19776 - 209`" St. Nw Ronald McClung, Iowa-MN District-The Wesleyan Calvary, P.O. Box 485, Charles City, IA 50616 ~SC~~~. 6-is-03; ~2=28PM;COYA. Bu E. Systems ;320 58~ X896 . ~ Tuesday, August 19, 2003 R~~~NEU AUG ~ 91pp3 Hutchinson Planning Staff Qc'pt of ~$ ~~ City Center 11 ]Hassan Street SE • ~ Hutchinson, MN 55350 ~ Subject: Public T-Tearing Notice an property rezone at 222 5th Ave. NW. • I am against the rezone of pzoperty located at 222 5th Ave. NW from R2 to C4. 't'here is a demand for lots and housing in Hutchinson so why rezone an area that is currently residential that could be developed? There are ongoing efforts to revitalize downtown and develop other areas that are zoned for commercial use and I believe they should be utilized. I assume that areas have been zoned to group similar needs and resources i.e, parking, police patrols, lighting and do not believe an exception should be made. If it were rezoned I believe that the adjacent vacant lot, 224 5th Ave. NW, would be . difficult to sell for housing and would result in another business in our neighborhood. The additional traffic, both pedestrian and vehicular, would not be appreciated. The church that owns the building, has always been a very small group, with limited traffic and I do not want to see that changed. Sincerely, Kristin Haugen # 1/ 1 7.5(1 Soh Ave. N W Hueehimm~. MN 55350.148$ 32fF587-SI83 32(F587.19$6 Fua Ke~~in.H~ugen([Dh~il~~eheem i Memo To: Mayor and City Council From: Lisa McClure, Executive Director Date: 9/3/2003 Re: State Theater Project The attached resolution is a requirement of Seuthwest Minnesota Foundation and the State of Minnesota. Earthly Delights, Ltd. has applied far a loan through the Challenge Lvan Program to help fund the renovation of the State Theater and additional rental spaces. Southwest Minnesota Foundation has requested this sponsoring resolution to ensure the City of Hutchinson agrees with the State Theater project and that the project is consistent with the purpose of the City. The resolution states that the City of Hutchinson supports the project submitted by Earthly Delights, Ltd. • Page 1 5(~~ • RESOLUTION NO. 12256 R.F.SOLUTION APPROVING SPONSORSHIP OF EARTHLY DELIGHTS LTD, CHALLENGE LOAN APPLICATION THROUGH SOUTIIWEST MINNESOTA FOUNDATION IN PARTNERSHIP WITII THE STATE OF 117INNE5OTA BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HiITCH1NSON, MINNESOTA: WHEREAS, pursuant to the provisions and requirements of the Rural Development Act, the local governing unit is required to issue a Sponsoring Resolution on behalf o1' businesses requesting financing through the Southwest Minnesota Foundation's partnership with the State of Minnesota's Challenge Loan Program and; WHEREAS, this body has received a request to issue a resolution nn behalf of Earthly Delights, LTD., and; WHEREAS, it is consistent with the purpose of this local governing unit to encourage employment, enhance the tax base, and create more opportunity for its residents. NOW, ThIEREFORE, BE IT RESOLVED, by the City of Hutchinson of the County of . McLeod, as a local governing unit supports the project submitted by Earthly Delights, LTD to the Southwest Minnesota Foundation's partnership with the State of Minnesota Challenge Loan Program. Passed and approved this 9th day of September, 2003. Minutes of the meeting of this Local Governing Unit adopting this resolution arc attached hereto and made a part hereof. ATTEST: Marlin'forgerson Mayor Gary D. Plotz City Administrator (Seal of governing body) ~~ RESOLUTION NO. 12255 RESOLUTION REJECTING 81DS ON IMPROVEMENT AND ORDERING ADVERTISEMENT FOR REBID LETTING NO. 13 PROJECT N0.02-22 Whereas, pursuant to an advertisement for bids for the furnishing of all labor and material for the improvement of: Project No. 02-22 South Fork Crow River Bank Stabilization Project" by construction of embankment, rip rap, landscaping and appurtenances, and bids were received, opened and tabulated according to law, and the following bids were received complying with the advertisement: Bidder Amount Bid Reiner Contracting Inc of Hutchinson MN $ 94,735.00 Ceres Environmental of Brooklyn Park MN $116,976.00 E & T Contracting Inc of Hutchinson MN $129,064.00 Landwehr Construction Inc of St Cloud MN $164,138.00 R & R Excavating of Hutchinson MN $185,984.00 Duininck Bros Inc of Prinsburg MN $221,485.00 AND W HEREA5, due to delay in the project all bids should be rejected and the project rebid. NOW THEREFORE, BE I7 RESOLVED 8Y THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: 1. All bids for said improvement are hereby rejected. 2. Said improvement shall be rebid on Friday, October 3rd, 2003 at 10:00 am. Adopted by the Hutchinson City Gouncil this 9th day of September 2003. Mayor City Administrator L. J ~(~~ . RESDLUTION NO. 12254 RESOLUTION REJECTING BIDS AND REJECTING IMPROVEMENT LETTING N0.2 PROJECT NO. D3-02 Whereas, pursuant to an advertisement for bids for the furnishing of all labor and material for the improvement of Plaza 15 Parking Lot and Pedestrian Access and Safely Improvements by construction of sidewalk, concrete drive, landscaping, lighting an appurtenances and bids were received, opened and tabulated according to law, and the fallowing bids were received complying with the advertisement: Bidder Amount Bid Duininck Bros Inc of Prinsburg MN $119,811.OD AND W HEREAS, it has been found that the bid price exceeds the Engineer's estimate by 303'o and duo to possible changes in the scope of said improvement, this improvement is not feasible at this time. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTGHINSON, MINNESOTA: 1. The bid of Duininck Bros Inc of Prinsburg MN, in the amount of $119,811.OD is hereby rejected. 2. Said improvement project is not feasible at this time and is hereby rejected. Adopted by the Hutchinson Gity Council this 9th day of September 2003. Mayor City Administrator 5(c~~ CERTIFICATION OF MINUTES RELATING TO HOUSING FACILITIES REFUNDING REVENUE BONDS (PRINCE OF PEACE SENIOR APARTMENTS, INC. PROJECT) SERIES 2003 issuer: City of Hutchinson, Minnesota Governing Body: City Council Kind, date, time and place of meeting: A regular meeting, held on September 9, 2003, at o'clock p.m., in the Council Chambers ai the Hutchinson City Center. Council members present: Council members absent: Documents Attached: Minutes of said meeting (pages): A RESOLUTION AUTHORIZING AND PROVIDING POR THE ISSUANCE AND SALE OF HOUSING FACILITIES REFUNDING REVENUE BONDS, AT THE REQUEST OF PRINCE OF PEACE SENIOR APARTMENTS, INC., . AND APPROVING FORMS OF DOCUMENTS REQUIRED IN CONNECTION THEREWITH i, the undersigned, being the duly qualified and acting recording officer of the public corporation issuing the obligations referred io in the title of this certificate, certify that the documents attached hereto, as described above, have been carefully compared with lbe original records of the corporation in my legal custody, from which they have been transcribed; that the documents are a correct and complete transcript of the minutes of a meeting of the governing body of the corporation, and correct and complete copies of al] resolutions and other actions taken and of all documents approved by the governing body at the meeting, insofar as they relate to the obligations; and that the meeting was duly held by the governing body at the time and place and was attended throughnui by the members indicated about, pursuant to call and notice of such meeting given as required by law. WITNESS my hand officially as such recording officer and the seal of the City ibis ~ day of , 2003. Gary D. Ploiz, City Administrator c~~a~ At .M., Council member closed the regular meeting and opened the Public Hearing to consider the issuance and sale of hands, at the request of Prince of Peace Senior Apartments, 1ne., a Minnesota nonprofit corporation (the "Corporation"), to provide for, among other things, the refunding in full of the City's outstanding Housing facilities Revenue Bonds (Prince of Peace Project), Series 1994. The County would act as a conduit for the financing and incur no expense. The following persons appeared: Name Summar of Comments The Public Hearing was closed at ~. _.M. Council member moved to adopt Resolution No. approving the issuance of housing facilities refunding revenue bonds. The motion for the adoption of the foregoing resolution was duly seconded by Council member and, 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 and was signed by the Mayor, whose signature was attested by the City Administrator. *~x+ ~^« .~* • ii c~(~~ . Resolution 12257 A RESOLUTION AUTHORIZING AND PROVIDING FOR THE ISSUANCE AND SALE OF HOUSING FACILITIES REFUNDING REVENUE BONDS, AT THE REQUEST OF PRINCE OF PEACE SEN1OR APARTMENTS, INC., AND APPROVING FORMS OF DOCUMENTS REQUIRED IN CONNECTION THEREWITI3 BE iT RESOLVED by the City Council of the City of Hutchinson, Minnesota (the "City" or the "Issuer"), as follows: 1. Authority. Pursuant to Minnesota Statutes, Chapter 462C, as amended (the "Act"), the City is authorized to issue revenue bonds and sell such bonds at public or private sale as maybe determined by this body to be most advantageous; and to loan the proceeds of its revenue bonds to a contracting party for the purpose of financing or refinancing multifanrily housing developments, all as further provided in the Acl, or to refund bonds issued under the Act. Such revenue bonds maybe secured by a pledge of the revenues to be derived by the Issuer from a loan agreement with the borrower, and by such other security devices as may be deemed advantageous. Under the provisions of the Act, any bonds so issued by the Issuer shall be special, limited obligations of the Issuer, and shall not constitute an indebtedness of the Issuer, within the meaning of any state constitutional provision or statutory limitation, nor give rise to a • pecuniary liability of the Issuer or a charge against its general credit yr taxing powers. 2. The Bonds and the Pro~ect. Prince of Peace Senior Apartments, Inc., a Minnesota nonprofit corporation (the "Corporation") has proposed that the City and the Corporation undertake the refinancing of a project consisting of an existing senior housing facility located at 3U1 Glen Street Southwest in the City (the "Project"), through, inter olio, the refunding in full of the City's outstanding Housing Facilities Revenue Bonds (Prince of Peace Project), Series 1994 (the "Refunded Bonds"), issued by the City in the original aggregate principal amount of $2,345,DU0, and has proposed in connection therewith that the Issuer issue and sell its Housing Facilities Refunding Revenue Bonds (Prince of Peace Senior Apartments, Inc. Project), Series 20U3A, in an original aggregate principal amount of not to exceed $2,21 0,000 (the "Series 20U3A Brands"), and its 'Taxable Health Care Facilities Kefunding Revenue Bonds (Prince of Peace Senior Apartments, Inc. Project), Series 2003B, in an original aggregate principal amount of not to exceed $275,000 (the "Series 2D03B Bonds," and, together wish the Series 2003A Brands, ref erred to collectively as the "Series 2003 Bonds" or the "Bonds"), all substantially in such forms and subject to the terms and conditions as are set forth in the Indenture referred to below, and loan the proceeds thereol'to the Corporation to finance the Project. 3. Public Hearin .Following not less than 15 days' published notice in the official newspaper and a newspaper of general circulation in the City, the City Council conducted a public hearing on September 9, 20D3, with respect to the issuance oFthe Bonds. All persons present had an opportunity to express their views with respect to the issuance of the Bonds. . 4. Documents Presented. Farms of the following documents have been submitted to the lssuer and are now on file in the offices of the Issuer: c~(a~ . a. 'frost Indenture (the "Indenture"), between the City and U.S. Bank National Association, as trustee (the "Trustee"); and b. Loan Agreement (the "Loan Agreement") between the City and the Corporation; and c. Combination Mortgage, Security Agreement and Fixture Financing Statement and Assignment of Leases and Rents (the "Mortgage"), from the Corporation to the Trustee; and d. Continuing Disclosure Agreement (the "Continuing Disclosure Agreement"), between the Corporation and the Trustee; and e. Bond Purchase Agreement (the "Bond Purchase Agreement"), by and between the Corporation, the City and Northland Sectuities, Inc. (the "Underwriter"); and f Preliminary OfTicial Statement and form of final Official Statement, the form ol`the Preliminary Official Statement, together with the insertion of the final underwriting details of the Bonds, including the interest rates thereon, and any other changes deemed necessary or desirable, intended to constitute the form of the final Official Statement, and including all Appendices thereto (together the "Official Statement"), describing the offering of the Bonds, and certain terms and provisions of the foregoing documents. • 5. Findings. It is hereby found, determined and declared that: a. The issuance of the Bonds is in the public interest and will promote the purposes of the Act. b. There is no litigation pending or, to the knowledge of the Issuer, threatened against the Issuer relating to the Project or to the Bonds, or to the Indenture, the Loan Agreement, the Bond Purchase Agreement, the Continuing Disclosure Agreement or the Mortgage (collectively referred to as the "Bond Documents") or questioning the organization, powers or authority of the Issuer to issue the Bonds or execute such agreements. c. The execution and delivery of and the performance of the Issuer's obligations under the Bonds and the Bond Documents do not and will not violate any order of any court or any agency of government of which the Issuer is aware or in any proceeding to which the Issuer is a party, or any indenture, agreement or other instrument to which the Issuer is a party or by which it or any of its property is bound, or be in conflict with, result in a breach of, or constitute (with due notice or lapse of time or bath) a default under any such indenture, agreement or other instrument. d. The Loan Agreement provides for payments by the Corporation to the . Tssucr, of such amounts as will be sufftcient to pay the principal of, premium, if any, and interest on the Bonds when due. ~(a~ • e. Under the provisions of the Act and as provided in the Loan Agreement, the Bonds are not and shall not be payable from or charged upon any funds other than amounts payable pursuant to the roan Agreement and related documents; the lssuer is not subject to any liability thereon; no owner of the Bonds shall ever have the right to compel the exercise of the taxing power of the issuer to pay the Bonds or the interest thereon, nor to enforce payment thereof against airy property of the lssuer; neither the Bonds nor any document executed or approved in connection with the issuance thereof shall constitute a pecuniary liability, general or moral obligation, charge, lien or encumbrance, legal or equitable, upon any property of the lssuer; and the Bonds shall not constitute or give rise to a charge against the general credit or taxing powers of the lssuer. 6. A roval and Execution of Documents. The forms of the lndenture, the Loan Agreement and the Bond Purchase Agreement, referred to in paragraph 4, are approved. The Indenture, the Loan Agreement and the Bond Purchase Agreement shall be executed in the name and on behalf of the lssuer by the officers identified in paragraph 10, in substantially the forms on file, but with all such changes therein as maybe approved by the officers executing the same, which approval shall be conclusively evidenced by the execution thereof. 7. Approval, Execution and Delivery ol'thc Bonds. The officers of the Issuer are hereby authorized and directed to execute and issue the Bonds, and the Bonds shall be issued in such series and shall be substantially in such forms, mature, bear interest, and be payable according to such terms and shall otherwise contain such terms and provisions as are set forth in • the Indenture, which terms are for this purpose incorporated in this resolution and made a par[ hereof; provided, however, that the aggregate principal amount of each series of the Bonds, the interest rates thereon, the amount and dates of the principal payments required to be made with respect thereto, and the rights of optional and mandatory redemption with respect thereto shall all be set Forth in the Indenture as executed and shall all be subject to the Cnal approval of the officers of the Issuer who execute and deliver the Indenture in accordance with the provisions of this resolution, such approval to be conclusively evidenced by the execution thereof; provided further, however, that, in no event shall the aggregate principal amount of the Series 2003A Bonds described in the Indenture exceed $2,100,000, shall the final maturity of the Series 2003A Bonds be in excess of 20 years from the date of issuance thereof, or shall the net interest cost with respect thereto exceed 6.50%per annum; and provided further that in no event shall the aggregate principal amount of the Series 2003B Bonds described in the Indenture exceed $275,000, shall the final maturity of the Series 2003B Bonds be in excess often years from the date of issuance thereof, or shall the net interest cast with respect therein exceed 6.50% per annum, The Bonds shall recite that they are issued pursuant to the Act and such recital shall, to the fullest extent permitted bylaw, conclusively establish the legality and validity thereof. The Bonds shall he sold to the Underwriter in accordance with and upon the teems and conditions set forth in the Bond Purchase Agreement. The proposal of the Underwriter to purchase the Bonds as provided in the Bond Purchase Agreement at the purchase price set forth therein is hereby found and determined lobe reasonable and is hereby accepted. 8. Certificates, etc. The officers of the Issuer are authorized to prepare and Furnish . to Dorsey & Whitney LLP, Minneapolis, Minnesota, as Bond Counsel to the Underwriter, and to the Underwriter, certified copies of all proceedings ~nrd records of the Issuer relating to the C~[~~ Bonds, and such other affidavits and certificates as maybe required to show the facts appearing from the books and records in the officers' custody and control or as otherwise known to them; and all such certified copies, certificates and affidavits, including any heretofore furnished, shall constitute representations ofthe Issuer as to the truth of al] statements of fact contained therein. 9. Nature of Issuer's Oblil;ations. All covenants, stipulations, obligations, representations, and agreements of the Issuer contained in this Resolution or contained in the aforementioned documents shall be deemed to be the covenants, stipulations, obligations, representations, and agreements of the Issuer to the full extent authorized or permitted by law, and all such covenants, stipulations, obligations, representations, and agreements shall be binding upon the Issuer. Except as otherwise provided in this Resolution, all rights, powers, and privileges conferred, and duties and liabilities imposed upon the Issuer by the provisions of this Resolution or of the aforementioned documents shall be exercised or performed by such officers or agents as may be required or authorized by law to exercise such powers and to perform such duties. No covenant, stipulation, obligation, representation, or agreement herein contained or contained in the documents referred to above shall be deemed to be a covenant, stipulation, obligation, representation, or agreement of any City Council Member, officer, agent, or employee of the Issuer in that person's individual capacity, and neither any member of the City Council nor any officer or employee executing the Bonds or such documents shall be liable personally on the Bands or be subject to any representation, personal liability or accountability by reason of the issuance thereof. No provision, representation, covenant or agreement contained in the Bonds, this Resolution or in any other document related to the Bonds, and no . obligation therein or herein imposed upon the Issuer or the breach thereof, shall constitute or give rise to a general or moral obligation, or indebtedness or pecuniary liability of the Issuer or any charge upon its general credit or taxing powers. In making the agreements, provisions, covenants and representations set forth in the Bonds or in any other document related to the Bonds, the Issuer has not obligated to pay or remit any funds or revenues, except for revenues derived from the Loan Agreement that are pledged to the payment of the Bonds. 10. Authorized Officers. The Bonds and the documents referred to herein are authorized to be executed on behalf of the Issuer by its Mayor and City Administrator; provided, however, that in the event that either of those officers shall be unavailable or for any reason be unable to execute the fonds or any other document to he entered into by the Issuer in connection therewith, any other officer of the lssuer, acting alone or with one or more other officers, is hereby directed and authorized to do so on behalf of the Issuer. 11. Definitions and Tnte retation. Terms not otherwise defined in this Resolution but defined in the Loan Agreement or the Indenture shall have the same meanings in this Resolution and shall be interpreted herein as provided therein. Notices maybe given as provided in the Loan Agreement. 1n case any provision of this Resolution is for any reason illegal or invalid or inoperable, such illegality or invalidity or inoperability shall not affect the remaining provisions of this Resolution, which shall be construed or enforced as if such illegal or invalid or inoperable provision were not contained herein. Adopted: , 2003• ~~~~ Approved: Mayor Attest: By City Administrator c~c~~ RESOLUTION NO. ~4g RESOLUTION RELATING TO DEVELOPMENT DISTRICT No. 4 AND TAX INCREMENT FINANCING DISTRICT N0.4-13, APPROVING THE GRANT OF A BUSINESS 5UBSIAY TO EARTHLY DELIGITS, LTD. (STATE THEATER PROJECT), AND APPROVING THE FORMS OF A REDEVELOPMENT AGREEMENT AND BUSINESS SUBSIDY AGREEMENT WITII EARTHLY DELIGHTS, LTA. BE IT RESOLVED by the City Council of the City of Hutchinson, Minnesota (the "City"), as follows: Section 1. Recitals 1.01. The City has approved and adopted a Modification to the Development Program for Development 1]istrict No. 4 (the "Development Program Modification"), established Tax Increment Financing District No. 4-13 (ihe "TIF District") therein, and adopted a Tax Increment Financing Plan (the "TIF Plan") therefor ;all pursuant to and in conformity with applicable law, including Minnesota Statutes, Sections 469.124 to 469.134 and Sections 469.174 to 469.1799, all inclusive, as amended. On July 8, 2003, this Council conducted a public hearing thereon. Notice of the public hearing was duly published as required by ]aw in the Hutchinson Leader, the official newspaper of the City, on Tune 26, 2003. 1.02. It has been proposed that Earthly Delights, Ltd. (the "Redeveloper") renovate and rehabilitate the State Theater and associated rental space (ihe "Project"), as more fully described in the TIF Plan. 1.03. It has been proposed that the City provide financial assistance to the Redeveloper consisting of tax increment financing revenue contributions from the TIF District and a loan in the amount of $]30,000 from the City's downtown revolving loan fund (collectively, the "Business Subsidy") to enable the Redeveloper to undertake the Project and to finance eligible costs associated therewith. Section 2. Findings for the Annroval of the Crxntine of Business S_ubsidv and the Business Subsidv Agreement 2.01. The City held a public hearing on the granting of the Business Subsidy on July 8, 2003 following published notice pursuant to Minnesota Statutes, Section 1167.994, Subdivision 5. 2.02. This Council hereby finds that the public purposes of the Business Subsidy are to redevelop blighted property, increase job opportunities, and enhance the tax base, 2.03. The Business Subsidy Agreement to be entered into by the City and the Redeveloper contains the provisions required by Minnesota Statutes, Section 1167.994, Subdivisions 3 and 4. 2 ~ c ~{~ 2.04. The granting of the Business Subsidy is hereby approved. Section 3. Approval of the Forms of the Redevelopment Agreement aad Business Subsidy Agreement and the Execution Thereof 3.01 The City and the Redeveloper will enter into a Redevelopment Agreement and Business Subsidy Agreement, forms of which arc on file with the City and have been made available for review by the Council. 3.02. The forms of the Redevelopment Agreement and Business Subsidy Agreement are hereby approved. The Mayor and City Administrator are hereby authorized to execute and deliver the Redevelopment Agreement and Business Subsidy Agreement in the form on file with the City with such changes and modifications thereto as may be approved by the officers executing the Redevelopment Agreement and Business Subsidy Agreement. The execution and delivery of the Redevelopment Agreement and Business Subsidy Agreement by the Mayor and City Administrator shall be conclusive of any change or modification thereto. Passed by the City Council this 9th day of September, 2003. ~1 LJ A1"I'EST: Gary I7. Plotz City Administrator Marlin Torgerson Mayor 3 ~~~~ DRAFT 9.3.03 r] REDEVELOPMENT AGREEMENT BETWEEN CITY OF Hi7TCHINSON, MINNESOTA u AND EARTHLY DELIGHTS, LTD. Dated as of September ~, 2003 'T'HIS INSTRUMENT DRAFTED RYA Dorsey & Whitney I,Ll' Suite 1500 50 South Sixth Street Minneapolis, Minnesota 55402 ~c~) TABLE OF CONTENTS ARTICLE 1 DEFINITIONS ......................................- .............,................... --................••• -... .................-... - 2 Section 1.1 Dcfinitions....... -- ................................................................................. - ......................2 ARTICLE 2 REPRESENTATIONS AND WARRANTIES .........................................................................................4 Section 2.1 Ey the City... - .................................................................................................................4 Section 2.2 By the Redeveloper . - ............ ................................................................................4 ARTICLE 3 LISE, OWNEKSIIIP OF REDEVELOPMENT PROPERTY; RF.STRICTIONS .....................................6 Section 3.1 Use ................... ................ ............................................... ........................................ G Section 3.2 Ovvncrship ...............................---................................••---......... ................---..................... G Section 3.3 Declaration of Restrictive Covenants ........................................ .........................................6 Scetion 3.4 Damage or Destmction ............................ ............................. ........ ..........................6 ARTICLE 4 CONSTRUCTION OF PROIECT ........... ............................................. .............................................. 6 Section 4.1 Construction Plans- .................- - .................................... ........................ - ................. 6 Section 4.2 Undertaking of Improvements....- . ................................. ................... .° ................... 7 Section 4.3 Certificate of Completion ............... - ............ .............. - - ........................................ 7 Section 4.4 Progress Reports.....-- ............... .................................. - -......................................... 8 Section 4.5 Access to Property - .......... .................................. - ...................... ...............8 ARTICLE 5 DEFENSE OT' CLAIMS; INSURANCE .................................. .............. . •- .................... - ........ 8 Section 5.1 Defense of Claims .......... .................................- ........... ........ - ................... --• .... 8 Section 52 Insurance .... .................- .................................. ............. ........ ........................ -.....9 ARTICLE G CITY ASSIS'1'ANCE ...............................................................- ................. ............... • ..........10 Section 6.1 Redevelopment Costs; City Assistance .................................................... ........................10 Section G.2 Reimbursement fur Costs ...... ...............- ............. - .................. ........................10 Section 6.3 Repayment of Revolving Fnnd Loan; Personal Guaranty ........................ ........................11 Section 6.4 Conditions Precedent to City Assistance .................................................. ........................11 ARTICLE 7 PROIIIBIT10N5 AGAINST ASSIGNMENT AND TRANSFER .........................................................12 Section 7.1 'transfer of Property and Assignxnent ..............................................:................................12 Section 7.2 Terntinativn of limitations on Transfer ...........................................................................12 ARTICLE 8 EVENTS OF DEFAULT; FEES ...................................... ........................... ...............- - ...................12 Section 8.1 Events of Default ..................................................................... ...................... ..............12 Section 8.2 Remedies on Default ........................................- .................. .......................... ............13 Section 8.3 No Remedy Exclusive ....................................- ...............- - ................. .............. Section 8.4 Waivers .....................................................----.............--........... 14 ...........-.-.-..-...................... Section 8.5 Agreement to Pay Attorneys' Fees .............................-----...... ...........----......................... 14 ARTICLE 9 GENERAL PROVISIONS ................................................................ .................. ......... ................ 14 Section 9.1 Conflict of Interests; City Representatives Nnt Individually Liable ................. ................14 Section 9.2 Equal Employment Opporhutity ..................... - ...............- - ................... . ................15 Section 9.3 Restrictions on Use ........ ............... .............. ......................- ................ ................15 Section 9.4 Titles of Articles and Sectinns .......................................................................... ................15 Scetion 9.5 Business Subsidies Act......- ................- ............. ................................... ................ IS Section 9.G Term of Agreement ....................................................................................... ................IS Section 9.7 Provisions Surviving Tcmtiniativn ................................................................... ................16 ARTICLElOADMINISTRATIVEPROVI5IONS .... ............................................................................................15 Section 10.1 Notices ......................................................................•--.................................................... 15 -t- ~(~~ Section ] 0.2 Binding Effect ................................................................................... ............. ...............16 Section 103 Sevcrability ........................................................................................ ............... ..........16 Section 10.4 Amendments, Changes and Modifications ........................................ ...............................16 Section 10.5 Further Assurances and Corrective Instruments ................................ ...............................16 Section 10.G Execution Counterparts .............................. .............- ............. _ - .........................16 16 Section 10.7 Applicable Law .......... ...................................... ................ . ...... .......... .................. Schedule A Redevelopment Prvperty ......... .................................................... ............................... S-A-1 Schedule B 1]cscription of Improvements & Project Costs ................................ ................................S-B-I Schedule C Tax Incremetzt Schedule ..........................................- ................... ................................S-C-1 Exhibit A Certificate of Completion ............................................. - ............,-. ........................... . A-1 Exhibit B Covenants and Restrictions ........ ............ ......................... ....... ....................... B-1 Exhibit C Form of Business Subsidy Agreement ........................................... .............•----................ Gl Exhibitll Form of Personal Guaranty ................................................... ..... ......... ...................D-1 C~ -ii- ~~~~ REDEVELOPMENT AGREEMENT This Redevelopment Agreement (the "Agreement") is made as of September ~, 2003, by and between the City of Hutchinson, Mimtesota, a Minnesota municipal corporation (the "City"), and Earthly Delights, Ltd., a Minnesota corporation (the "Redeveloper"). WITNESSETH: WHEREAS, the City has designated a development district in the City denominated Development District No. 4 (the "Development District") and has approved a development program for the Development District (the "Development Program")pursuant to and in accordance with Minnesota Statutes, Sections 469.124 through 469.134, as amended; and WHEREAS, as of the date of this Agreement there has been prepared and approved by the City, pursuant to the Act, a Modification to the'Development Program for Development District No. 4 dated 7uly 8, 2003 (the "Modification"); and WHEREAS, on July 8, 2003, the City adopted a resolution establishing Tax Increment Financing District No. 4-13, a "redevelopment district" pursuant to Minnesota Statutes, Section 4fi9.174, Subdivision 10 (the "TIF District"), and approving a Tax Increment Financing Plan dated July 8, 2003 therefor (the "CIF Plan"); and . WHEREAS, in order to achieve the objectives of the Development Program, the Modification, and the TCF Plan, the City intends to provide assistance to the Redeveloper through (i) tax increment financing, as described in Minnesota Statutes, Sections 469.174 through 469.1799, as amended (the "TIF Act"~, and (ii) a loan in the amount of $130,000 from the City's downtown revolving loan fund (collectively, the "City Assistance") to finance.certain costs of the renovation and rehabilitation of the State Theater and associated rental space and other related improvements of a public nature_and administration costs upon the Redevelopment Property (the "Project"); and WHEREAS, the City has determined that, in order to accomplish the purposes specified in and to carry out the Development Program, the Modification, and the'fIF Plan, it is necessary and desirable for the City to reimburse the Redeveloper for certain costs to be incun•ed and paid by the Redeveloper in connection with the Project; and WHEREAS, the tax increment revenues expected to be generated from the TIF District are currently estimated to be approximately $16,040 annually, assuming completion ofthc Project and payment of the real estate taxes when due. As hereinafter provided, the City will apply such tax increment revenues generated from the TIF District to (i) pay or reimburse the City for administrative expenses relating to the TIF District to the extent pemtitted by the TIF Act and, (ii) to reimburse the Redeveloper, with interest, for the costs of the Public Improvements associated with the Project; and WHEREAS, the City believes that the redevelopment 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. NOW, THEREFORE, in consideration of the foregoing premises and the mutual obligations set forth in this Agreement, the parties hereto hereby agree as follows: ARTICLE 1 Definitions Section 1.1 Definitions. In this Agreement, unless a different meaning clearly appears from the context: "Act" means Minnesota Statutes, Sections 469.124 through 469.] 34. "Agreement" means this Agreement, as the same maybe from time to time modified, amended or supplemented. "Available Tax Increment" means 9U percent (90%) of the lax increment revenues generated by Tax Increment Financing District No. 4-13 as computed pursuant to Minnesota Statutes, Section 469.177, ar its successor. "Business Subsidies Act" means Minnesota Statutes, Sections 1167.993 through 1161.995. . "Business Subsidy Agreement" means the Business Subsidy Agreement in the form attached hereto as Exhibit C to be executed and delivered by the City and the Redeveloper in accordance with Section 9.6 hereof. "Certificate of Completion" means a certification in the form attached hereto as Exhibit A, to be provided to the Redeveloper pursuant to this Agreement. "City" means the City of 1utchinson, Minnesota. "City Assistance" means the tax increment revenues generated by Tax Increment Financing District No. 4-13 and the loan in the anrount of $130,000 from the City of 1lutchinsan's downtown revolving loan fund. "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 Redeveloper on the Redevelopment Property. "County" means the County of McLeod, Minnesota. "Default Notice" means written notice from the City to the Redeveloper setting forth the Event of Default and the action required to remedy the same. . "Development District" means Development District No. 4 designated pursuant to Minnesota Statutes, Sections 469.124 through 469.134. -2- `~~~) "Development Program" means the Development Program developed for Development District No. 4. "Event of Default" means as any of the events set forth in Section 8.1 hereof. "Improvements" means the improvements to be undertaken by the Redeveloper as a part of the Projcet on the Redevelopment Property all as further described in Schedule B attached hereto. "Loan" means the loan in the amount of $] 30,000 from the City of Hutchinson's downtown revolving loan fund. "McLeod County" means the County of McLeod, Minnesota, a political subdivision of the State of Minnesota. "Modification" means the Modification to the Development Program for Development District No. 4 approved by the City on July 8, 2003. "Mortgage" means any mortgage made by the Redeveloper which covers, in whole or in part, the Redevelopment Property. "Mortgagee" means the owner or holder of a Mortgage. • "Project" means the renovation and rehabilitation of the State Theater and associated rental space and of site improvements and other improvements of a public nature and administration costs upon the Redevelopment Property. "Project Costs" means certain costs incurred and to be incurred by the Redeveloper in the construction of the project ,the estimated types and amounts of which aze shown on Schedule B to this Agreement. "Project Description" means the improvements and project costs as described in Schedule B attached hereto. "Public hmprovements" means those Improvements for which the City will reimburse the Redeveloper out of the Available Tax increment as provided in Section 6.2 hereof. "Redeveloper" means Earthly Delights, Ltd., a Minnesota corporation organized under Minnesota Statutes, Chapter 302A. "Redevelopment Property" means the real property described in Schedule A attached hereto. "Restrictions" means the easements, covenants, conditions and restrictions set forth in Exhibit B attached hereto. . "Section" means a Section of this Agreement, unless used in reference to Minnesota Statutes. -3- ~(~~ . "State" means the State of Minnesota. "TIF Act" means Minnesota Statutes, Sections 469.174 through 469.1799. "TIF District" means T'ax Increment Financing District No. 4-13 established by the City on July 8, 2003_ "'fIF Plan" means the'1'ax increment Financing Flan for Tax Increment Financing District No. 4-13 dated and approved by the City on 7uly 8, 2003. "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 alter 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 Re resentations and Warranties Section 2.1 B t~ he Ci~• The City makes the fallowing representations to the Redeveloper: ~J (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. (b) The City has designated the Development District and has adopted the Development Program and Modification in accordance with the provisions of the Act and has created the T1F District and adopted the TIF Plan in accordance with the provisions of the TLF Act. Section 2.2 B the Redevelo er . The Redeveloper represents and warrants that: (a) The Redeveloper is a Minnesota corporation under Minnesota Statutes, Chapter 302A, has power to enter into this Agreement and has duly authorized, by all necessary corporate action, the execution and delivery of this Agreement. (b) The Redeveloper 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- ~c~) (c) It is anticipated that the Project will be constructed so that when completed the Redevelopment Property will have a market value as determined pursuant to Minnesota Statues, Section 273.11, of at least $760,000. (d) At Bach time or times as maybe required bylaw, the Redeveloper will have complied with all local, state and federal environmental laws and regulations applicable to the Improvetents, and will have obtained any and all necessary environmental reviews, licenses and clearances. The Redeveloper has received no notice or communication from any local, state or federal official that the activities of the Redeveloper or the City with respect to the Redevelopment Property maybe or will be in violation of any environmental law or regulation. The Redeveloper 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 Redevelopment Property. (e) Neither the execution or delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and conditions of this Agreement is prevented by, limited by, conflicts with, or results in a breach of, any restriction, agreement or instrument to which the Redeveloper is now a party or by which the Redeveloper is bound. (f) The Redeveloper (i) is not in default in the payment of the principal of or interest on any indebtedness for bonrowed 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. (g) The Redeveloper has no knowledge or information that any member of the City Council or any other officer of the City ltas any direct or indirect financial interest in the Redeveloper, the Redevelopment Property or the Project. (h) The Redeveloper recognizes that the City intends that the TIF District be an "redevelopment district" under the TIF Act. As owner in fee simple of the Redevelopment Property, the Redeveloper represents to the City chat the Redevelopment Properiy and the Improvements will be operated in a manner such that the T1F District will qualify and continue to qualify as a "redevelopment district" under the TiF Act until the TIF District is decertified as provided in the TIF Act. (i) The Redeveloper will obtain, in a timely manner, all required permits, 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 Redeveloper will request and seek to obtain from the Cily all necessary variances, conditional use permits and zoning changes. (j) The Redeveloper would not undertake the Project without the financial assistance to be provided by the City pursuant to this Agreement and the TIF Plan. No -S- ~C«) . property other than the State Theater and associated rental space is expected to be redeveloped in the TIF District. (k) Apart from the assistance to be provided under this Agreement, the Redeveloper shall pay all standard charges and fees due with respect to real estate developments and allocable to the Redevelopment Property under City ordinances and the City Cade, 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; provided, however, that no special assessments shall be levied against the Redevelopment Property for the construction of the Improvements. ARTICLE 3 Use Crvvnershi ofRedcvelo meet Pro ert • Restrictions Section 3.1 Usc. The Redeveloper's use of the Redevelopment 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 Ownershi .The Redeveloper hereby represents and warrants that the Redeveloper is the owner in fee simple of the Redevelopment Property, and that there are no liens, defects yr other encumbrances upon title to the Redevelopment Property that would hinder the Redevelopment of the Redevelopment Property by the Redeveloper as contemplated by this Agreement. Section 3.3 Declaration of Restrictive Covenants. The Redeveloper shall prepare, execute, and record on the title to the Redevelopment Property a Declaration of Restrictive Covenants, in form approved by the City, which includes the Restrictions set forth on Exhibit B. if the Redeveloper determines that operation of the Redevelopment Property and the Improvements would endanger the financial viability thereof, the Redeveloper may request the City Council to consent to the amendment, modification or termination of any of the restrictions in any respect. The City is under no obligation to amend, modify or terminate any of the restrictions and may, in its sole and absolute discretion, refuse to do so. Section 3.4 Damaee or Destruction. Upon any damage or destruction of the Project, or any portion thereof, by fire or other casualty, the Redeveloper 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 Redeveloper shall make available Construction Plans for the Project to the City prior to the construction of the respective phase. The Construction Plans shall provide for construction of the Project in conformity with the Development Program, the Modification, the T1F Plan, this Agreement, and all applicable state and local laws and regulations. The Cily shall approve the Construction Plans in writing if, in -6- gc~~ • the reasonable discretion of the City, the Construction Plans: (a) conform to the Development program, the Modification, the TfF Plan, this Agreement, and io any subsequent amendments thereto approved by the City; (b) conform to all applicable federal, state and local laws, ordinances, rules and regulations; (c) are adequate to provide far construction of the Improvements; and (d) no Event of Default has occurred. No approval by the City shall relieve the Redeveloper of the obligation to comply with the temps 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 Redeveloper shall submit new or corrected Construction Plans within thirty (30) days after written notiFcation to the Redeveloper 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 Undertaken of Im rovements. (a) Subject to Unavoidable Delays, the Redeveloper will complete the Project by October 31, 2005, and all in accordance with the terms of the Project Description. . (b) All work with respect to the Improvements shall be in substantial conformity with the Construction Plans approved by the City. Upon approval by the City of the Construction Plans, the Redeveloper shall promptly begin the Project and diligently prosecute the completion the Redevelopment of the Redevelopment Property through the construction of the Improvements in accordance with the requirements of the Project Description. The Redeveloper shall make reports, in such detail and at such times as may reasonably be requested by the City, as to the actual progress of the Redeveloper with respect to the Project. (c) The Redeveloper 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 assessable by the City or other governmental body against other benefited properties, all street and utility installations, relocations, alterations and restorations shall he at the Redeveloper's expense and without expense to the City. The Redeveloper, at its own expense, shall replace any public facilities or utilities damaged during the Project by the Redeveloper or its agents yr by others acting on behalf of or under their direction or control of the Redeveloper. Section 4.3 Certi ficate of Com letion. (a) Promptly after completion of the Project in accordance with the Project . Description, the Redeveloper will provide the City with a certificate of substantial completion and the City will furnish the Redeveloper with a Certificate of Completion in -7- ~~a~ 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 Redeveloper to complete the Project. The famishing by the City of such Certificate of Completion shall not constitute evidence of compliance with or satisfaction of any obligation of the Redeveloper to any Mortgagee. (b) If the City shall refuse or fail to provide such Gertificate of Completion, the Gity shall, within fifteen (15) days after the Redeveloper provides the certificate referenced in Section 4.3(a), provide the Redeveloper with a written statement specifying in what respect the Redeveloper has failed to complete the Project fn 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 Redeveloper to obtain the Certificate of Completion. Section 4.4 Pro ess Re orts. Until a Certificate of Completion is issued, the Redeveloper 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 Pro ert .The Redeveloper agrees to permit the City and any of its officers, employees or agents access io the Redevelopment 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 Redeveloper shall indemnify and hold hamaless the City, its gvvcming body members, officers, and agents including the independent contractors, consultants, and legal counsel, servants and employees thereof (hereinafter, fox the purposes of this Section, collectively the "Indemnified Parties' for any expenses (including attorneys' fees), loss, damage to properly, or death of any person occurring at or about, or resulting from any defect in, the Project; provided, however, the Redeveloper 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 fndemnified Party. Promptly after receipt by the City of notice of the commencement of any action in respect of which indemnity maybe sought against the Redeveloper under this Section 5.1, such person will notify the Redeveloper in writing of the commencement thereof, and, subject to the provisions hereinafter stated, the Redeveloper 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 maybe sought against the Redeveloper. 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 Redeveloper unless the employment of such counsel has been specifically authorized by the Redeveloper. 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 -8- ~cc~ . are different from or in addition to those available to the Redeveloper, the Redevelopers shall not be entitled to assume the defense of such action on behalf of the City, but the Redeveloper shall be responsible for the reasonable fees, costs and expenses (including the employment of counsel) of the City in conducting its defense. The Redeveloper shall not be liable to indemnify any person for any settlement of any such action effected without the Redeveloper's consent. The omission to notify the Redeveloper as herein provided will not relieve the Redeveloper from any liability which they may have to any Indemnified Party pursuant hereto, otherwise than under this section. (b) The Redeveloper 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 Redeveloper (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 Redeveloper, causing the TIF Aistrict to cease to qualify as a `Ycdevelopment district" under the TiF Act or to violate limitations as to the use of the revenues therefrom as set forth in the TIF Act. (c) All covenants, stipulations, promises, agreements and obligations of the City contained herein shall be deemed to be the covenants, stipulations, promrses, agreements and obligations of the City and not of any governing body member, officer, agent, servant or employee of the City, as the case maybe. Section 5.2 Insurance. (a) The Redeveloper shall keep and maintain the Redevelopment Property and Improvements at all times insured against such risks and in such amounts, with such deductible provisions, as are customary in connection with facilities of the type and size comparable to the Improvements, and the Redeveloper shall carry and maintain, or cause to be carried and maintained, and pay or cause to he 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 ("hull insurable value" shall include the actual replacement cost of the Improvements, exclusive of foundations and footings, without deduction for architectural, engineering, -y- ~(R~ 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 requircd 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 $ ] 0,000. (b) Subject to the terms of any mortgage relating to the Redevelopment Property, policies of insurance required by this Section 5.2 shall insure and be payable to the Redevcloper, and shall provide for release of insurance proceeds to the Redeveloper fvr restoration of loss. The City shall be furnished certificates showing the existence of such insurance. In cast of loss, the Redeveloper is hereby authorized to adjust the loss and execute proof thereof in the name of all parties in interest. The Redeveloper 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 certiCcate executed by the Redeveloper stating that, to the best of the knowledge of the Redeveloper, insurance on the Improvements then in force complies with this Section 5.2. ARTICLE fi Cit A_ y ssistance Section 6.1 Redevelopment Costs: City Assistance. The Redeveloper has agreed to and shall he responsible tv pay all of its respective costs of the Project, as herein provided. However, the City, in order to encourage the Redeveloper to proceed with the construction and installation of the Improvements, and io assist the Redeveloper in paying the costs thereof, is willing to provide the City Assistance and thereby: (a) reimburse the Redeveloper fvr certain Project Costs, as permitted by the TIF Act and in accordance with the TLF Plan, that will be incurred by the Redeveloper to construct the Improvements; and (b) provide the Redeveloper with a Loan in the amount of $130,000 from the City's downtown revolving loan fund. Section 6.2 Reimbursement for Costs. The City agrees to reimburse the Redevcloper out of the Available Tax Increment for the costs of the Public Improvements, on or about each February 1 and August 1, in the principal amount of the lesser of $178,000 or the costs of the Public Improvements actually incurred and paid by the Redevcloper, with interest at the rate of seven percent (7%) per ammun on the principal balance from time to time unpaid. Such reimbursement is subject to the following terms and conditions: (a) No payments shall be made by the City to the Redeveloper unless and until the City Administrator has confirmed in writnag to the City that the costs for the -lo- ~~~~ Improvements have been incurred and paid by the Redeveloper and the Certi£cate of Completion has been issued as contemplated in Section 4.3 hereof. (b) The City shall be obligated to make the payments to the Redeveloper required pursuant to this Section 6.2 only from and to the extent of the Available Tax Increment actually received from the T1F District for any tax year, and such payments shall never be considered to be a general obligation or indebtedness of the City. (c) The Available Tax Increment shall be paid to the Redeveloper for reimbursement of costs incurred and paid by the Redeveloper as provided above, provided that the Redeveloper is not in default on the Loan. (d) In the event that the Redeveloper fails to make a payment on the Loan when it becomes due, in accordance with the repayment terms of the Loan, no payments shall be made by the City to the Redeveloper and the City shall be authorized to apply the Available Tax lnerement, as permitted by the T1F Act and the TIF Plan, to reimburse itself for the Loan or any other fees to be paid by the Redeveloper hereunder. Payments to the Redeveloper shall resume at such time as the Loan payments are made in accordance with its terms. The Redeveloper shall forgo any and all amounts that are not paid to the Redeveloper due to the Redeveloper's default on the Loan. (e) Upon thirty (30) days' written notice to the Redeveloper, the City may prepay all or a portion of the outstanding principal balance due to the Redeveloper pursuant to this Section 6.2 without penalty, on any date at a prepayment price equal to the outstanding principal balance to be prepaid plus accrued interest to the prepayment date. The Redeveloper may at any time request the City to apply excess Tax Increment from the Property to the prepayment of all or a portion of the principal balance due hereunder but the City, in its sole discretion, shall determine whether any prepayment shall be made. (f) The City shall not be obligated to make any payments hereunder subsequent to the termination of this Agreement as provided in Section 9.6 hereof, and any amounts remaining unpaid as of such date (other than by reason of failure of the City to comply with the terms of this Agreement) shall be considered Forgiven by the Redeveloper and shall cease to be owing. Section 6.3 Rea ent of Revolvin Fund Loan' Personal Guarant .The Redeveloper shall repay the Loan in accordance with its terms. It shall be a condition precedent to the City's reimbursement of the Redeveloper's costs as provided in Section 6.2 hereof that the Redeveloper is not in default on the Loan. The Redeveloper hereby agrees that its shareholders, Miles and Linda McMonagle, will execute and deliver to the City a Personal Guaranty in which they shall absolutely and unconditionally guarantee repayment of the Loan. Section G.4 Conditions Precedent to Cit Assistance. Notwithstanding anything to the contrary contained herein, the City's obligation to reimburse the Redeveloper for such Project Casts and to provide the Redeveloper with a Loan &nm the City's downtown revolving loan -1]- ~(~~~ • fund shall be subject to satisfaction, or waiver in writing by the City, of all of the following conditions precedenL• (i) the conditions precedent in this Section 6.4 hereof have been satisfied; (ii) the Redeveloper shall have cured any title defects with respect to the Redevelopment Property; (iii) the Redeveloper shall not be in default under the terms of this Agreement; and (iv) the Redeveloper shall have closed on financing sufficient to pay all costs to be incurred in connection with the acquisition and construction ofthe Improvements. In the event that all of the above conditions required to be satisfied as provided in this Section b.4 have not been satisfied by 7anuary 31, 20D4, either the City or the Redeveloper may terminate this Agreement. Upon such termination, the provisions of this Agreement relating to the Improvements shall terminate and, except as provided in Article 8, neither the Redeveloper nor the City shall have any further liability or obligation to the other hereunder. AATIC)~E 7 Prohibitions A ainst Assi ent and Transfer Section 7.1 Transfer of Pro crt and Assi ent. The Redeveloper has not made and will not make, or suffer to be made, any total or partial sale, assigrunent, conveyance, lease (other than leases of space in the Improvements constructed as a part of the Project or a mortgage securing financing for the Project), or other transfer, with respect to this Agreement or the Redevelopment Property ox any part thereof or any interest therein, or any contract or agreement to do any of the same. Section 7.2 Termination of Limitations on Transfer. The provisions of Section 7.1 shall terminate at such time as all of the following conditions are met: (i) the Loan shall have been paid in full in accordance with its terms; (ii) the Certificate of Completion shall have been famished in accordance with Section 4.3 hereof; and (iii) the Redeveloper shall have been in continued operations in the City for at ]east five (5) years from the Benefit Datc as provided in the Business Subsidy Agreement, entered into as of the date hereof, between the City and the Redeveloper. 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 -12- ~c~~ and continues for more than thirty (30) days after notice by the defaulting party of such default (an<l 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 Redeveloper to construct or reconstruct the Improvements as required hereunder. (b) Failure of the Redeveloper to furnish the Construction Flans as required hereunder. (c) Failure of the Redeveloper to pay to the City any amounts required to be paid by the Redeveloper hereunder. (d) Failure of the Redeveloper or the City to observe and perform any other covenant, condition, obligation or agreement on its part to be observed or performed hereunder. (e) Failure of the Redeveloper to pay any taxes on the Redevelopment Property as they become due. (f) Filing of any voluntary petition in bankruptcy or similar proceedings by the Redeveloper; general assignment for the benefit of creditors made by the Redeveloper or admission in writing by the Redeveloper of inability to pay its debts generally as they become due; or filing of any involuntary petition in bankruptcy or similar proceedings against the Redeveloper 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 tv the Redeveloper setting forth with specific particularity the Event of Default and the action required to cure or remedy the same (the "Default Notice"). The Redeveloper 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 maybe reasonably required to complete the cure as soon as reasonably possible under the circumstances. lf, following the Redeveloper's receipt of a Default Notice, the Redeveloper does not cure or remedy the Event of Default therein specified within the time provided above, the City may take any one ar more of the following actions at any time prior to the Redeveloper's curing or remedying the Event of Default: (a) Suspend its performance under this Agreement until it receives assurances from the Redeveloper, deemed adequate by the City, that the Redeveloper will cure its default and continue its performance under this Agreement. (b) Terminate all rights of the Redeveloper under this Agreement. (c) Withhold the Certificate of Completion. L J -13- ~(~~ (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 Redeveloper 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 Redeveloper may take any one or more of the following actions: (a) Suspend its performance under this Agreement until it receives assurances from the City, deemed adequate by the Redeveloper that the City will cure its default and continue its performance under this Agreement. (b) Temrinate all rights of the Cily under this Agreement. (c) Take whatever action at law yr in equity may appear necessary or desirable to the Redeveloper to enforce performance and observance of any obligation, agreement, or covenant of the City under this Agreement. Section 8.3 No Remed Exclusive. No remedy herein conferred upon or reserved to the City or to the Redeveloper 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 ]aw 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 maybe exercised from time to time and as often as maybe deemed expedient. In order to entitle the City or the Redeveloper 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 A~eement 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 far the enforcement or performance or observance of any obligation or agreement on the part of the Redeveloper herein contained, the Redeveloper agrees that it shall, on demand therefor, pay to the City the reasonable fees of such attorneys and such other expenses so incurred by the City. ARTICLE 9 General Provisions Section 9.1 Conflict of Interests• 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 Cityparticipate in any decision relating to this Agreement which affects his or her personal interests or the -14- `~~ 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 Redeveloper, 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 Redeveloper or successors or on any obligations under the teens of this Agreement. Section 9.2 Equal Employment Opportunity. The Redeveloper, for itself and its successors and assigns, agrees that during the constntction of the Project it will comply with any applicable affirmative action and nondiscrimination laws or regulations. Section 9.3 Restrictions on Use. The Redeveloper agrees for itself, and its successors and assigns, and every successor in interest to the Redevelopment Property, or any part thereof, that the Redeveloper, and such successors and assigns, shall devote the Redevelopment Property to, and only to and in accordance with, the uses specified in the ModiFcation, TIF Plan, and this Agreement, and shall not discriminate upon the basis of race, color, creed, sex or national origin in the sale, lease, or rental or in the use or occupancy of the Redevelopment Property or any improvements erected or to be erected thereon, or any part thereof. Section 9.4 Titles of Articles and Sections. Any titles of the several parts, Articles, and Sections of this Agreement are inserted for convenience of reference only and shall be disregarded in construing or interpreting any of its provisions. Section 9.5 Business Subsidies Act. The Business Subsidies Act requires as a condition for the assistance being provided by the City to the Redeveloper trader this Agreement that the Redeveloper enter into an agreement with the City meeting the requirements set forth in the Business Subsidies Act. In order to satisfy such requirement, upon execution of this Agreement, the City and the Redeveloper will execute and deliver the Business Subsidy Agreement in substantially the form attached hereto as Exhibit C. Section 9.6 Term of A rg Bement. This Agreement shall terminate upon the earlier to occur of (i) reimbursement of the Redeveloper's costs by the City as provided in Section 6.2 hereof; (ii) the decertification of the TTF District; or (iii) the City and the Redeveloper 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 9.b. Section 9.7 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 ID Administrative Provisions. . Section ] 0.1 Notices. All notices, certificates or other communications required to be given to the City and the Redeveloper hereunder shall be sufficiently given and shall be deemed -15- ~(~~ C, J 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 Redeveloper: Earthly Delights, Ltd. 1 A850 Stone Road Wayzata, Minnesota, 55391 Attn: Miles and Linda McMonagle The City and the Redeveloper, by notice given hereunder, may designate different addresses to which subsequent notices, certificates or other communications should be sent. Section 10.2 13indin~ffect. This Agreement shall inure to the benefit of and shall be binding upon the City and the Redeveloper and their respective successors and assigns. Section 10.3 Sevcrabilit . 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 10.4 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 Redeveloper. Section 10.5 Further Asswances and Corrective Instruments. The City and the Redeveloper agree that they will, from time to time, execute, acknowledge and deliver, or cause to he 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 10.fi Execution Counte arts. This Agreement maybe 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 10.7 A lic_,pp~ able LaN'• 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. -lfi- (0.~ IN WITNESS WI~IEREOF, the parties hereto have caused this Agreement to be duly executed as of the date First about written. Cl'fY OF HLTTCHINSON, MINNESOTA $y Mayor And City Administrator EARTI~LY DELIGIITS, LTD. Sy -17- ~ (~~ STATE OF MINNESOTA ) SS. COUNTY OF MCLEOD ) The foregoing instrument was acknowledged before me this day of 2003, by Marlin Torgerson, the Mayor, and Gary Plotz, 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 2003. Notary Public STATE OF MINNESOTA ) SS. COUNTY OF The foregoing instrument was acknowledged hefvre me this 2003 by the Minnesota corporation, on behalf of the corporation. day of , of Earthly Relights, Ltd., a IN WITNESS WHEREOF, T have set my hand and my official seal this , 2003. Notary Public -18- day of g CQ~ • SCHEDTJLE A REDEVELOPMENT PROPERTY C~ C1 J Parcel Number Address 23-056-3400 S-A-1 35 Washington Avenue East Hutchinson, Minnesota ~~~~ . scl~EnuLE B AESCRTFTION OF iMPROVEMENT5 & PROJECT COSTS The Improvements and Project Costs shall consist of: Improvement: • General Paint & Cosmetics Main Theater • General Paint & Cosmetics Balcony Theater • General Paint & Cosmetics Lounge Theater • Insulate Ceiling Over Main Theater • Insulate Ceiling Over Balcony Theater • Insulate Ceiling Over Apartments • General Paint & Cosmetics Lobby • Ncw Concession Stand(s) • Remodel Restrooms • New ADA Compliant Unisex Restroom • Demo Apartment Area _Cost (with descriotionl; $SO,OOD Paint, Tile, wall tile, stage (Carpet & Drapes in Screen Renovation) $50,000 Paint, Tile, wall tile, (Carpet & Drapes in Screen Renovation) $50,D00 Paint, Tile, (Carpet & Arapes in Screen Renovation) $987 53' x 48' x 1' = 2544 cubic feet $797 51' x 40' x 1' = 2040 cubic feet $2,277 6000 square feet $fi5,D00 (Raise ceiling, change lights, paint carpet, Lounge) $12,D00 $4,500 (New tile, paint light tixtures,paint stalls) $9,500 $5,000 $20 an hour, 250 man hours (6 people, 1 week) • Disposal of Lead Waste $7,500 • • Disposal of General Waste 1Zenewal of Apartment Area $5,000 $450,000 (6,000 ft x 75.00 per sq) ^ Removal of Waste from Basement $3,500 Removal of Oil Tanks from Basement • Getteral Clean, Paint, Renew of Retail 1 west $3,500 • General Clean, Paint, Renew of Retail 1 east $3,500 • General Clean, Paint, Renew of Retail 2 east $3,500 • General Clean, Paint, Renew of Retail 3 east, $3,500 Create optional use, rear of Retail 3 east $8,000 • Replace Seat Cushions All 3 Theaters (mold) $7,287 • Ncw and Repaired Theater Tquip $59,000 • Replace Seat Poam & Barrier All 3 '1'hcaters (mo ld) $6,230 • Repaint Seat Frames A113 Theaters (mold) $4,100 • Draping, Carpeting, Nose Lights al] 3 Theatres $11,000 • Asbestos Abaument, l;ntire Property $17,500 • Repair Sprinkler System $2(1,DOD • Elevator, Apartments $125,000 • Roof Replacement $80,000 • Repair Northwest Comer $15,D00 • Repair Canopy Underside (mst through) $2,500 • Rebuild Marquee with Tower $97,000 • Neon In Main Theater, uprights $18,000 Total Entire Project $1,200,678 S-B-1 ~~~J • SCHEDULE C TAX INCREMENT SCHEDULE Twx 1tVCREMENT CAS(i FLOW w 1 prgect CapN14d seen+-Ann11015teR AD9Ilyr admen Semi.Annuil Cumul, Annual Pa1'MEN7 PATE/ pu D1 T x G108e Hx et al NH Tex NPV NH Tax PEPoDD ENGMNG PERIoC BEGI NNINR Tat; TaM e i -0 60x •10 009. InoemeM 7.0014 Ineemem Vrs. Mlh. Ve. Mm. yw ri. C ao Ca Ca be nttem . . 0 0 0241 . 0 p p D 0 D 0 08-01 2009 02-01 7003 2.150 7.150 0 0 v 0 v U 0 02-01 2004 OB-01 7003 1 2• ~ 2,150 0 0 0 0 0 0 0 09-01 T004 02.01 2004 2.150 ] 150 0 0 0 9 p p 0 07-01 7005 06.01 low 7.150 21so 0 301 12 0 e 95s (a5) (891) B, 020 s,157 050601 7005 0.007-01 2CO5 2.150 14,450 . 1 301 , 8 956 (45) (691) 8.020 13.276 16,059 1.0 07.01 2008 0.5 08.01 2005 2,1eA 14,450 2. 0 , 6 953 (4S) (891) 1 020 19,576 1 5 Oy-01 2006 1.0 07-01 7008 2150 14 450 0 1 12,3 301 12 , 8 955 (45) (091) , 8.020 25,870 16,039 "e.0 07.01 2007 1,5 OB-01 7006 Z 150 14,45 , 'At 2 , 8 955 (4W f~11 8.020 )1,55° 7.5 08.01 2007 7.0 02-01 2007 2,150 14.450 1 , 301 12 , 8 955 (a5) 1891) 8,020 37,739 16,039 3,0 02.01 7000 2.5 08.01 7007 2.150 14,480 0 , 901 12 , 0 959 (43) (8911 8,020 42,732 3.50&01 2008 3.007.01 7000 2,150 N,4S , , 8 955 (dfi) (691) 070 1 48,038 1E,099 4.002-01 2009 3.50!•01 2006 2, 1'A 1e 430 12301 , 8 955 745) (091) , 0,020 53.167 4.50601 ]009 4.0 02-01 2008 2.150 14.450 12 =01 30 , 8 985 (e5) (801) 6,070 58.121 16,079 5.0 02.01 2010 e,5 00.01 7003 7.150 14.450 1 12, 9 1 , 855 8 (45) (991) 8,020 67?oB SS OBAI 2010 60 OZ-01 7010 2.150 14450 12 0 , 16,07A ~ 5.5 OB-01 2010 2,150 13 301 0 955 051 (891) @020 72,003 5 0&01 2011 6007-01 2011 2.150 14,430 , 12 301 , B 955 (43) (991) 8.020 78,318 18.038 7.0 07.01 7017 6.5 08-01 7011 2.190 14 d5D , 901 12 8 955 f°9) 10917 8,020 4 B0, 90 7 5 08.01 7012 7 v 0'1-01 2011 2.150 14,450 , , 8 955 745) 10911 8,020 8°,5.11 16.039 9002-01 7019 7508-01 3m7 2,150 19,450 12,301 1 , fi 95S (°5) (891) BA7p BB,415 8.5 Ofi•D1 2013 0.0 W-Ot 2013 2.160 14,450 12.30 301 , B 95ei 145) (891) 0,020 9],177 18,039 9 D Ob01 3018 9.5 00-01 -2013 2.150 14,450 17. 30 , P55 S (45) (8911 0 020 95.912 9.5 DB-01 2014 & a OT-01 2014 2.150 14.450 1 17, , , 18.030 . 8.5 OB-01 7014 2,1eA 1a A50 12305 1 953 (45) (891) tl,07v 102,718 10.50801 2015 10002-01 2016 2,150 301 , 0 955 (43) (691) 8,020 105,686 16,039 11.0 02-01 7m6 10500-01 T015 7.150 Id,e50 17, 3 , 955 8 l45) (881) 8 020 10£164 11.5 08.01 2019 11 002-01 7016 3.150 14,450 17, 01 ]01 2 , A55 B (45J (881) , 8.070 117,225 16,038 12A 02-01 2017 11,5 D6•o1 7018 3.150 14,460 1 , 2 30 , 0955 (d5) (831) 0,070 115,182 +2.500-Ot 7017 12007-011 7017 2,150 14,450 1 , 1 16.039 12.5 08-01 7017 2.1~ 0 0 8955 (45) 1~1) 0,020 120.800 13.5 08-01 ]018 13002-01 2018 2.150 14,450 1 12.3 90 8 955 p5 ( ) 1 (~ ) 8,070 123,467 18,039 14,007-01 2015 13.5 OB-01 1x18 2.150 14,450 17, 1 30 , 0 95' (45) (891) 8,020 1]6.044 14,5 00-01 2018 14.0@.01 7w9 2 180 14.450 1 17, 0 , . 955 8 145) (8911 9070 128.534 16038 15.0 OZ-D1 2020 1q.5 0601 2019 2.150 1A y50 1 17,3 , 8 955 145) (991) -0 0 15.0 p7A1 2070 2,150 14,450 12.301 0 , 8 955 (°5) (891) B,D20 137 704 16 via 1 18.0 02 20z1 155 tl8-01 2020 2.150 14,-050 1 12.3 9 1 , 835 9 (45) (891) a 079 135,510 16.5 08.01 2021 18.0 02-01 To71 2.150 19 450 17. 0 , 8 855 (d5) (891) BOZO 137.880 16,039 17,0 ~-01 ]037 165 oB-01 2021 2,190 14,x50 12.301 301 12 , 8 955 145) (891) 8020 1?9,776 17508-01 2022 17 00201 3077 2,150 14,450 , 12 3w , 8 955 (451 (891) 9,020 141,!01 18.039 18.0 02-01 2029 17,5 De-01 7022 2,150 14,430 , . 02 18.0 07.01 7029 1,150 14,a ~ 1 0 955 (45) (891) 8.020 145,fi49 16.038 19.0 -01 x024 1! 5 0&01 7023 2.150 8 12,30 , 0 955 7451 (891) 8.020 147,476 19508.07 19.007.01 2024 2,150 14,x50 12,301 301 17 , 1 955 (45) (891) 8,070 149.2°1 16,039 20.0 02-01 2025 19.5 00-01 2024 2,150 14,450 . , 8 955 145) (891) fi,OZO 150,847 20309.01 2025 20.007.01 2025 2,150 1°.450 173w 0 , 6455 (45) (691) 8,070 152.595 16,039 21002-01 ]076 70,506-01 2025 2,150 1d-050 1 17.3 71.0 M-01 2076 2.150 8 955 (45) (91) B,07v 155.725 16, W9 22.0 OZ-01 7077 21 508-01 2076 1,150 14.450 17,301 0 . 955 0 (851 (891) E.O7v 157,211 22.5 09.01 2077 22.0 02+11 1077 2.150 14,450 17 9 1 12 301 . BASS (45) 1891) B.O7D 188,647 76.039 290 OZ-01 2078 22,5 tH3-D1 2027 ].150 14,450 , 30 955 8 (°5) 1091) 6,P70 180,034 23.5 06-01 $028 23,0 02-01 7036 7,150 14,g5v 11, 1 , 5 16.039 0 2330601 2028 2.1`'0 30 853 8 (15) (891) 0,020 i8Z,870 24.5 08-01 2029 74 0 02-01 2026 2.150 14050 1 11 , 8 955 NS) (881) 6,020 163.921 18.030 75 002-01 2030 24.5 OB-Ot 2028 2.150 14,450 12.301 01 , 955 6 (°5) (891) 8,020 165.130 73 5 08-01 1030 35 0 02.01 2030 7,150 14,450 12,3 1 , 9955 (°5) (881) 8,020 166,798 16,039 26,002-01 7031 75508.01 2W0 2.150 10,450 12,30 . Pu„' 1 V81uea lfem 271N4 196 931 •7L.•pmfavwue or.a~o erJ. u.eee uprncw =enn~.(n W~weaw4a+~~7L•~7n'1 ~wrv Willrry 4~pmwp~ifniiJexe .-Mdna•iwllimma~YYF yen. 1(NY emN~4mmmn°11"~'~'~ mwvN ~nlPM, eu~e°'n110. Y4em Ne I.IT el.h 4.Yo4 S-C-1 ~~~) . EXHIBIT A CERTIFICATE OF COMPLETION WHEREAS, Earthly Delights (the "Redeveloper ") is the owner and the Redeveloper of property in the City of Hutchinson and the State of Minnesota described on Exhibit I attached hereto and made a part hereof (the "Redevelopment Property"); and WHEREAS, the Redevelopment Property is subject to the provisions of a certain Rcdevelopment Agreement (the "Agreement") dated September ~, 2003, by and between the Redeveloper and the City of Hutchinson, Minnesota (the "City"); and WHEREAS, the Redeveloper has fully and duly performed all of the covenants and conditions of the Redeveloper under the Agrecment with respect to the completion of the Project (as defined in the Agreement); NOW, THEREFORE, ii is hereby certified that all requirements of the Redeveloper 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 ~„ , 200_ CITY OF HllTCHiNSON, MLNNESOTA By Its A-1 $c~~ Exhibit I REDEVELOPMENT' PROPERTY L.J • Parcel Number Address 23-056-3400 A-2 35 Washington Avenue East I-Iutchinson, Minnesota ~C~-) STATE OF MINNESOTA COUNTY OF MCLEOD SS. The foregoing instrument was acknowledged before me this ,2D ,by ,ihe~ of Hutchinson, Minnesota. Notary Public • • THIS INSTRUMENT DRAFTER BY: Dorsey & Whitney LLP Suite 1500 50 South Sixth Slreet Minneapolis, Minnesota SSA02 A-3 day of ofthe City ~<~) EXIIIBIT B COVENANTS AND RESTRICTIONS 1. The Property shall not be exempt from real estate taxes notwithstanding the ownership or use of the land. 2. The Property shall not be sold, transferred, conveyed or leased to any ofthe-following parties: (a) An institution of purely public charity; (b) A church or ancillary tax-exempt housing; (c) A public hospital; (d) A public school district; (e) An organization exempt from federal income taxes pursuant to Section 501(c)(3) of the lntemal Revenue Code of 1986, as amended, if as a result of such sale, transfer, conveyance or least the Property would become exempt from real estate taxes; or (f) A Minnesota cooperative association organized under Minnesota Statutes, Section 308.05 and 308.18 for the purpose of complying with the provisions of Minnesota Statutes, Section 273.133, subdivision 3, or any other party that would cause the Property to be valued and assessed for real estate tax purposes at a lower percentage of its market value than the Property is then being valued and assessed for real estate tax purposes or would result in the Property becoming exempt from real estate taxes. 3. The Property shall not be used for any of the fallowing purposes (a) The operation of a public charity; (b) A church or house of worship; (~) The operation of a public hospital; (d) The operation of a public schoolhouse, academy, college, university or seminary of teaming; or (e) Any other use which would cause the Property to be valued and assessed for zeal estate tax purposes at a lower percentage of its market value than the Property is then being valued and assessed for real estate tax purposes or would result in the Property becoming exempt from real estate taxes. B-1 ~C~) . 4. The Property shall be devoted to uses consistent with a "redevelopment district" under Minnesota Statutes, Sections 4b9.174 through 469.1799. 5. The Property owner shall_ (a) not discriminate on the basis of color, creed, national origin, or sex in the sale, lease, use or occupancy of the Property, the Improvements or any part thereof; (b) develop the Property in an orderly manner consistent with the City's zoning ordinances and comprehensive plan. 6. The covenants and restrictions herein contained shall run with the title to the Property and shall be binding upon all present and future owners and occupants of the Property; provided, however, that the covenants and restrictions herein contained shall inure only to the benefit of the City and maybe released or waived in whole or in part at any time, and from time to time, by the sole act of the City, and variances maybe granted to the covenants and restrictions herein contained by the sole act of the City. These covenants and restrictions shall be enforceable only by the City, and only the Ciiy shall have the right to sue far and obtain an injunction, prohibitive or mandatory, to prevent the breach of the covenants and restrictions herein contained, or to enforce the performance or observance thereof 7. The covenants and restrictions herein contained shall remain in effect until the date of termination of this Redevelopment Agreement, dated September ~, 2003, and thereafter shall be null and void. F3-2 ~C~) EXHIBIT C FORM OF BUSINESS SUBSIDY AGREEMENT This Business Subsidy Agreement (the "Agreement") is made as of this ~ day of September, 2003, between the City of Hutchinson , Minmesota (the "Grantor") and Earthly Delights, Ltd. (the "Recipient"). In order to satisfy the provisions of Minnesota Statutes, Sections ] 167.993 through 1 I6J.995 (the "Act"), the Recipients acknowledge and agree as follows: Descri lion of the Business Subsid (a) The Project. The Recipient will be undertaking the following project within the Grantor's area of operation: The renovation and rehabilitation of the State Theater and associated rental space, including demolition and renovation costs (the "Project"). (b) Type ofl3usiness Subsidy. The Business Subsidy consists vf. (i) tax increment financing revenue contributions to be made from Tax Increment Financing District No. 4-13 for permissible Project costs; and (ii) a loan in the amount of $130,000 from the City's downtown revolving loan fund (collectively, the "Business Subsidy"). (c) Amount of the Business Subsidy. The amount of the Business Subsidy granted to the Recipient under this Agreement has a value of no more than $547,000. (d) Type of Tax Increment Financing District. The 'Tax Increment Aistrict in which the Project is located is a "redevelopment district" within the meaning of Minnesota Statutes, Section 469.174, Subdivision 10. 2. Public Pu ose for the Business Subsid .The public purpose of this Business Subsidy is to redevelop blighted property, increase job opportunities, and enhance the tax base. 3. Wh the Business Subsid is Needed. The Business Subsidy is needed because the Grantor is desirous of the Recipient undertaking the Project in order to redevelop blighted properly, increasejvh opportunities, and enhance the tax base in the Grantor's area of operation and the Project is not economically feasible for the Recipient to undertake without the Business Subsidy. 4, Goals for the Business Subsid includin Job and Wa e Goals. The goals for the project are io facilitate the renovation and rehabilitation of the State Theater and associated rental space, including demolition and renovation costs, provide an impetus for private redevelopment activities in the public interest, reduce blight, increase employment opportunities and enhance • the tax base of the City and overlapping taxing jm'isdictions. Such goals are measurable, specific, and tangible goals. C-] ~~~~ The Job and Wage Goals far the Business Subsidy are: one (1) permanent, full-time or full-time equivalent job with wages as follows: Job Title Number of Jobs Average Annual Wage Manager $1o,71z 5. Continued Operations. The Recipient agrees to continue its operations in the City for at least flue (5) years after the Benefit Date. As used herein "Benefit Date" means the date the Business Subsidy is received. The Business Subsidy is far improvements to property, therefore the Benefit Date refers to the earliest date of either: (1) when the improvement is finished for the entire Project, or (2) when the Recipient occupies the property. 6. Financial Obligation of the Aecinient if Agreement Not Fulfilled. As required in Section 116J994, Subdivision 6, if the Recipient fails to meet the goals contained in paragraph 4 herein, the Recipient will repay all of the Business Subsidy to the Grantor plus interest set at the implicit price deflator defined in Minnesota Statutes, Section 275.70, Subdivision 2, accruing from and after the Benefit Date, compounded semiannually. Reporting Requirements. • (a) The Recipient agrees to furnish tq the Grantor on or before March 1 in each year the report required in Section 1167.994, Subdivision 7 of the Act nn forms developed by the Minnesota Department of Employrnent and Economic Development. (b) If the Grantor does not receive the reports, it will mail the Recipient a warning within one week of the required filing date. If within fourteen (14) days of the past marked date of the warning the reports are not made, the Recipient agrees to pay to the Grantor a penalty of $1 DO for each subsequent day until the report is filed up to a maximum of $1,000. 8. Parent Co orations. The Recipient warrants that it has no parent corporations. 9. Other Grantors. At this time, the Grantor and the Recipient understand that no other financial assistance will be provided by other state government agencies or local govenunent agencies for the Project. ] 0. Term of A rg cement. This Agreement will be in full force and effect until the earlier of the Recipient meeting all of their obligations hereunder or the provisions of the Act no longer apply to the Grantor, the Recipient or the Project, in which case this Agreement will be terminated. r~ L c-2 ~~~~ • The Granter and the Recipient have executed this Agreement as of the date written above. Grantor: CITY OF HUTCHINSON, MINNE50TA By Its Mayor By Its Ciiy Administrator Recipient: EAATIILY DBLIGHTS, LTD. By Its ~~ C ~ ~~~~ . EXHIBIT D FORM OF PERSONAL GUARANTX THIS GUARANTY, dated as of September , 2003, is made and given by MILES AND LINDA MCMONAGLE, husband and wife, residing in Wayzata, Minnesota (the "Guarantors"), in favor of the CITY OF HCJTCIIINSON, MINNESOTA (the "City"). RECITALS A. Earthly Delights, Ltd., a Minnesota corporation (the "Redeveloper"), and the City have entered into a Redevelopment Agreement dated as of September ~, 2003 (as the same may hereafter be amended, restated, nr otherwise modified from time to time, the "Redevelopment Agreement") pursuant to which the City has agreed tv provide the Redeveloper with certain financial assistance in connection with the renovation and rehabilitation by the Redeveloper of the State Theater and associated rental space in the City (the "Financial Assistance"). B. It is a condition precedent to the obligation of the City to provide such assistance pursuant to the tenors of the Redevelopment Agreement that this Guaranty be executed and delivered by the Guarantors. C. The Guarantors are the shareholders of the Redeveloper. D. The Guarantors expect to derive benefits from the Financial Assistance provided by the City to the Redeveloper under the Redevelopment Agreement and find it advantageous, desirable and in their best interests to execute and deliver this Guaranty to the City. NOW, TI~EREFORE, in consideration of the Financial Assistance provided by the City to the Redeveloper under the Redevelopment Agreement to be extended to the Redeveloper and for other goad and valuable consideration, the Guarantors hereby covenant and agree with the City as follows: Section 1. Defined Terms. As used in this Guaranty, the following terms shall have the meaning indicated: "City" shall have the meaning indicated in Recital A. "Financial Assistance" shall have the meaning indicated in the opening paragraph hereof "Redeveloper" shall have the meaning indicated in Recital A. "Redevelopment Agreement" shall have the meaning indicated in Recital A. "Guarantors" shall have the meaning indicated in the opening paragraph hereof. "Obligations" shall mean all indebtedness, liabilities and obligations of the Redeveloper . to the City of every kind, nature or description under the Redevelopment Agreement, including, D-1 ~~c~ . but not limited to, the Redeveloper's obligation io repay the Loan pursuant to Section 6.3 thereof. "Person" shall mean any individual, corporation, partnership, limited partnership, limited liability company, joint venture, firm, association, trust, unincorporated organization, govemmcnt or governmental agency or political subdivision or any other entity, whether acting in an individual, fiduciary or other capacity. Section 2. The Guarant .The Guarantors hereby absolutely and unconditionally guarantee to the City the payment when due (whether at a stated maturity or earlier by reason of acceleration or otherwise) and performance of the Obligations. Section 3. Continuin Guarant . 'Phis Guaranty is an absolute, unconditional and continuing guaranty of payment and performance of the Obligations, and the obligations of the Guarantors hereunder shall not be released, in whole or in part, by any action yr thing which might, but for this provision of this Guaranty, be deemed a legal or equitable discharge of a surety or guarantor, other than irrevocable payment and performance in Full of the Obligations. No notice of the Obligations to which this Guaranty may apply, or of any renewal or extension thereof need be given to the Guarantors and none of the foregoing acts shall release the Guarantors from liability hereunder. The Guarantors hereby expressly waive (a) demand of payment, presentment, protest, notice of dishonor, nonpayment or nonperformance on any and all forms of the Obligations; (b) notice of acceptance of this Guaranty and notice of any liability to which it may apply; (c) all other notices and demands of any kind and description relating to . the Obligations now or hereafter provided for by any agreement, statute, law, rule or regulation; and (d) any and all defenses of the Redeveloper pertaining to the Obligations except for the defense of discharge by payment. The Guarantors shall not be exonerated with respect to the Guarantors' liabilities under this Guaranty by any act or thing except irrevocable payment and performance of the Obligations, it being the purpose and intent of this Guaranty that the Obligations constitute the direct and primary obligations of the Guarantors and that the covenants, agreements and all obligations of the Guarantors hereunder be absolute, unconditional and irrevocable. The Guarantors shall be and remain liable for any defcicncy remaining after foreclosure of any mortgage, deed of truss or security agreement securing all or any part of the Obligations, whether or not the liability of the Redeveloper or any other Person for such deficiency is discharged pursuant to statute, judicial decision or otherwise. The acceptance of this Guaranty by the City is not intended and does not release any liabibiy previously existing of any guarantor or surety of any indebtedness of the Redeveloper to the City. Section 4. Other Transactions. The City is expressly authorized (a) to exchange, surrender or release with or without consideration any or all collateral and security which may at any time be placed with it by the Redeveloper or by any other Person, or to forward or deliver any or all such collateral and security directly to the Redeveloper for collection and remittance or for credit, or to collect the same in any other manner without notice to the Guarantors and (b) to amend, modify, extend or supplement the Redevelopment Agreement, any note or other instrument evidencing the Obligations or any part thereof and any other agreement with respect to the Obligations, waive compliance by the Redeveloper or any other Person with the respective . terms thereof and settle or compromise any of the Obligations without notice to the Guarantors and without in any manner affecting the absolute liabilities of the Guarantors hereunder. No I7-2 `_"Q~ invalidity, irregularity or uncnforceahility of al] or any part of the Obligations or of any security therefor or other recourse with respect thereto shall affect, impair or be a defense to this Guaranty. The liabilities of the Guarantors hereunder shall not be affected or impaired by any failure, delay, neglect or omission on the part of the City to realize upon any of the Obligations of the Redeveloper to the City, or upon any collateral or security for any or all of the Obligations, nor by the taking by the City of (or the failure to take) any other guaranty or guaranties to secure the Obligations, nor by the taking by the City of (or the failure to take or the failure to perfect its security interest in or other lien on) collateral or security of any kind. No act or omission of the City, whether or not such action or failure to act varies or increases the risk of, or affects the rights or remedies of the Guarantors shall affect or impair the obligations of the Guarantors hereunder. The Guarantors acknowledge that this Guaranty is in effect and binding without reference to whether this Guaranty is signed by any other Person yr Persons, that possession of this Guaranty by the City shall be conclusive evidence of due delivery hereof by the Guarantors and that this Guaranty shall continue in full force and effect, both as to the Obligations then existing and/or thereafter created, notwithstanding the release of or extension of time to any other guarantor of the Obligations or any part thereof. Section 5. Actions Not Re uired. The Guaraniors hereby waive any and all right to cause a marshalling of the assets of the Redeveloper or any other action by any court or other governmental body with respect thereto or to cause the City to proceed against any security for the Obligations or any other recourse which the City may have with respect thereto and further waives any and al] requirements that the City institute any action or proceeding at law yr in equity, or obtain any judgment, against the Redeveloper or any other Person, or with respect to any collateral security for the Obligations, as a condition precedent to making demand on or bringing an action or obtaining and/or enforcing a judgment against, the Guarantors upon this Guaranty. The Guarantors further acknowledge that time is of the essence with respect to the Guarantors' obligations under this Guaranty. Any remedy or right hereby granted which shall be found to be unenforceable as to any Person or under any circumstance, for any reason, shall in no way limit or prevent the enforcement of such remedy or right as to any other Person or circumstance, nor shall such unenforceability limit or prevent enforcement of any other remedy or right hereby granted. Section 6. No Subrogation. Notwithstanding any payment or payments made by the Guarantors hereunder, the Guarantors waive all rights of subrogation to any of the rights of the Ciiy against the Redeveloper or any other Person liable For payment of any of the Obligations or any collateral security or guaranty or right of offset held by the City for the payment of the Obligations, and the Guarantors waive all rights to Beck any recourse to or contribution or reimbursement from the 'Redeveloper or any other Person liable for payment of any of the Obligations in respect of payments made by the Guarantors hereunder. Section 7. Application of Payments. Any and all payments upon the Obligations made by the Guarantors or by any other Person, and/or the proceeds of any yr all collateral or security for any of the Obligations, tnay be applied by the City on such items of the Obligations as the City may elect. . Section 8. Recove of Pa ent. If any payment received by the City and applied to the Obligations is subsequently set aside, recovered, rescinded or required to be returned for any D-3 ~!~` reason (including, without limitation, the bankruptcy, insolvency or reorganization of the Redeveloper or any other obligor), the Obligations to which such payment was applied shall for the purposes of this Guaranty be deemed to have continued in existence, notwithstanding such application, and this Guaranty shall be enforceable as to such Obligations as fully as if such application had never been made. References in this Guaranty to amounts "irrevocably paid" or to "irrevocable payment" refer to payments that cannot be set aside, recovered, rescinded or required to be returned for any reason. Section 9. Redeveloper's Financial Condition. The Guarantors are familiar with the financial condition of the Redcveloper, and the Guarantors have executed and delivered this Guaranty based on the Guarantors' own judgment and not in reliance upon any statement or representation of the City. The City shall have no obligation to provide the Guarantors with any advice whatsoever or to inform the Guarantors at any time of the City's actions, evaluations or conclusions on the financial condition or any other matter concctning the Redeveloper. Section 10. Remedies. Al] remedies afforded to the City by reason of this Guaranty are separate and cumulative remedies and it is agreed that no one of such remcdies, whether or not exercised by the City, shall he deemed to be in exclusion of any of the other remedies available to the City and no one of such remedies shall in any way limit or prejudice any other legal or equitable remedy which the City may have hereunder and with respect to the Obligations. Mere delay or failure to act shall not preclude the exercise or enforcement of any rights and remedies available to the City. . Section 11. Bankruntc _ of the Redevelo er. The Guarantors expressly agree that the liabilities and obligations of the Guarantors under this Guaranty shall not in any way be impaired or otherwise affected by the institution by or against the Redcveloper or any other Person of any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or any other similar proceedings for relief under any bankruptcy law or similar law for the relief of debtors and that any discharge of any of the Obligations pursuant to any such bankruptcy or similar law or other law shall not diminish, discharge or otherwise affect in any way the obligations of the Guarantors under this Guaranty, and that upon the institution of any of the above actions, such obligations shall be enforceable against the Guarantors. Section 12. Costs and Bx enses. The Guarantors will pay or reimburse the City on demand for all out-of-pocket expenses (including in each case all reasonable fees and expenses of counsel) incureed by the City arising out of or in connection with the enforcement of this Guaranty against the Guaratrtors or arising out of or in connection with any Failure of the Guarantors to fully and timely perform the obligations of the Guarantors hereunder. Section 13. Waivers and Amendments. This Guaranty can be waived, modified, amended, terminated or discharged only explicitly in a writing signed by the City. A waiver so signed shall be effective only in the specific instance and for the specific purpose given. Section 14. Notices. Any notice or other communication to any party in connection with this Guaranty shall be in writing and shall be sent by manual delivery, telegram, telex, facsimile • transmission, overnight courier or United States mail (postage prepaid) addressed to such party at the address specified on the signature page hereof, or at such other address as such party shall D-4 ~ /0.\ have specified to the other party hereto in writing. All periods of notice shall be measured from the date of delivery thereof if manually delivered, from the date of sending thereof if sent by telegram, telex or facsimile transmission, from the first business day after the date of sending if sent by overnight courier, or from four days after the date of mailing if mailed. Section I5. Guarantors Acknowled ements. The Guarantors hereby acknowledge that (a) counsel has advised the Guarantors in the negotiation, execution and delivery of this Guaranty, (b) the City has no fiduciary relationship to the Guarantors the relationship being solely that of debtor and creditor, and (c) no joint venture exists between the Guarantors and the City. Section ] 6. Continuin Guaranty; Assi ments under Redevelopment Agreement. This Guaranty shall (a) remain in full force and effect until irrevocable payment in full of the Obligations and the expiration of the obligations, if any, of the City to extend credit accommodations to the Redeveloper, (b) be binding upon the Guarantors, their heirs, representatives and assigns and (c) inure to the benefit of, and be enforceable by, the City and its successors, transferees, and assigns. Without limiting the generality of the foregoing clause (c), the City may assign or otherwise transfer all or any portion of its rights and obligations under the Redevelopment Agreement to any other Persons to the extent and in the manner provided in the Redevelopment Agreement and may similarly transfer all or any portion of its rights under this Guaranty to such Persons. Section 17. Reaffirmation. The Guarantors agree that when so requested by the City . from time to time they will promptly execute and deliver to the City a written reaffirmation of this Guaranty in such form as the City may require- Section 18. Revocation. Notwithstanding any other provision hereof, the Guarantors may revoke this Guaranty prospectively as to future transactions by written notice to that effect actually received by the City. No such revocation shall release, impair or affect in any manner any liability hereunder with respect to Obligations created, contracted, assumed or incurred prior to receipt by the City of written notice of revocation, or Obligations created, contracted, assumed or incured after receipt of such notice pursuant to any contract entered into by the City prior to receipt of such notice, or any renewals or extensions thereof, theretofore or thereafter made, or any interest accrued or accniing on such Obligations, or all other costs, expenses and attorneys' Pecs arising from such Obligations. Section 19. Governin Law and Construction. T'HE VALIDITY, CONSTRUCTION AND ENFORCEABILITY OF THIS GUARANTY SHALL BE GOVERNED BY THE LAWS QF THE STATE OF MINNESOTA, WITHOUT GIVING EFFECT TO CONFLICT OF LAWS PRINCIPLES THEREOF. Whenever possible, each provision of this Guaranty and any other statement, instrument or transaction contemplated hereby or relating hereto shall be interpreted in such manner as to be effective and valid under such applicable law, but, if any provision of this Guaranty or any other statement, instrument or transaction contemplated hereby or relating hereto shall be held to be prohibited or invalid under such applicable law, such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder • ot'such provision or the remaining provisions of this Guaranty or any other statement, instrument or transaction contemplated hereby or relating hereto. D-5 ~ ~~` Scction 20. Consent to Jurisdiction. AT THE OPTION OF THE CITY, THIS . GUARANTY MAYBE ENFORCED IN ANY FEDERAL COURT OR MINNESOTA STATE COURT SITTING IN GLENCOE, MINNESOTA; AND THE GUARANTORS CONSENT TO 'THE JURISDICTION AND VENUE OF ANY SUCH COURT AND WANES ANY ARGUMENT THAT VENUE IN SUCH FORUMS I5 NOT CONVENIENT. IN THE EVENT TI3E GUARANTORS COMMENCE ANY ACTON IN ANOTHER JURISDICTION OR VENUE UNDER ANY TORT OR CONTRACT THEORY ARISING DIRECTLY OR INDIRECTLY FROM THE RELATIONSHIP CREATED BY THIS GUARANTY, THE CITY AT ITS OPTION SHALL BE ENTITLED TO HAVE THE CASE TRANSFERRER TO ONE OF THE JURISAICTIONS AND VENUES ABOVE-DESCRIBER, OR IF SUCH TRANSFER CANNOT BE ACCOMPLISHED UNDER APPLICABLE LAW, TO HAVE SUCH CASE DISMISSED WITHOUT PRENDICE. Section 21. Waiver of Jur~Trial. EACH OF THE GUARANTORS AND THE CITY, BY THEIR ACCEPTANCE OF THIS GUARANTY, IRREVOCABLY WANES ANY AND ALL RIGkIT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS GUARANTX OR THE TRANSACTIONS CONTEMPLATED HEREBY. Scction 22. Counter arts. This Guaranty maybe executed in any number of counterparts, each of which when so executed and delivered shall be deemed an original, but all such counterparts together shall constitute but one and the same instrument. . 5ectian 23. General. All representations and warranties contained in this Guaranty or in any othcr...agreement between the Guarantors and the City shall survive the execution, delivery and performance of this Guaranty and the creation and payment of the Obligations. Captions in this Guaranty are for reference and convenience only and shall not affect the interpretation or meaning of any provision of this Guaranty. IN WITNESS WHEREOF, the Guarantors have executed this Guaranty as of the date first above written. GUARANTORS: MILES MCMONAGLE LINDA MCMONAGLE i D-G ~ C0.) Address for the Guarantors: 14850 Stone Road Wayzata, Minnesota 55391 Phone Numbers: (952) 473-42$3 (work) (952) 476-8923 (home) (952) 201-1697 (cell) Fax Number: (952) 449-9563 (business fax) Address for the Cit 111 Hassan Street SB Hutchinson., Minnesota 55350 Phone Number: (320) 587-5151 Pax Number: (320) 234-4240 r ~. b-7 ~ ~~~ C~ City of Hutchinson Engineering/1'ublic Works Maintenance ~pcrations 14D0 Adams St Sr Hutchinson, MN 55350 Phone (320) 234-4219 Pax (320) 234-6971 To: Honorable Mayor and City Cuuneil Prom: John Olsan, Asst. Public Works Dir. CC: lobo Rodeberg, Die of EngR/Pub Wks Ken Merrill, Finance Director Subject: RL•maining Vehicle Rcplxeuments -~ 2003 Phis January we planned to only purchase vehicles/equipment that wcvc 1) critical to Police or fire llepartmen( operations, nr 2) used in emergency or essential maintenance operations ([ha[ support public health, safety or protect property). Using these criteria, we identified 2 squad cars and 2 necks for replacement in 2UU3. Sinec then we replaced an asphalt trailer, used in street maintenance. This summer, Directors worked with Central Uarage to determine fitture fleet needs. Budget and staff reductions will change the fleet needs of some departments. Pm•chases to support new . organizational/staffutg will be deferred until 2004. This will provide staff adequate time to properly plan ruyuircd vehicle and equipment replacements. 'I'Ive rcmuininY equ~tment tg-b~urchq,ced in 20(!3-using denti and criteria include: 1. One (1 eaJ 1 ton pickup -Snow removal a. Replacement vehicle. 2. Three (3 ea.) snowplows -Snow removal a. (One replacement and two new plows for equipment not yet cyuipped with snowplows) 3. Une (1 ea J Skid steer -Snow removal a. (Ownership of this unit is being transferred from the School District to the L'iry by reducing tluee atmual $5,000 coon act payments to the City for grounds maintenance/snow removal. School District replaced this unit with $30,000 utility vehicle also accessible to the Park Department) 4. Two (2 ca.) Police Syuad Cars -Police Department a. (2003 pricing is available for 2UU4 squad cars, this will likely save 2 or 3% on the cost of Syuad cars that would have been replaced in 2004 anyway -around $1,200) Recommendution.' Accept quote 1'rnm Hutchinson Auto Center fora 2004 Yord 1'350 pickup $26,725.07 Accept quote from Hnlt'I'ruck (:enter for one 9' replacement snowplow $ 5,226.16 Accept quote from North Central Truck Equipment for one Vec plow $ 4,764.81 Accept yuate from Farm-Rite L•quipment for one skid steer snowplow $ 2,449.SU Accept transfer of 2001 Sohcat 773 skid steer loader from 15ll 423 $ no cash • Accept quote from Superior Ford for 2 Fnrd Crown Victoria Police Interceptors $42,809.50 $81,975.04 q ~~~~ August 2G, 2(1(13 C~ Hutchinson L'ity Center C 1 ~M Yll [lasnan Street Sk Hulehinean~ MN 55350-2522 32U-,5ii7-~,5qq1,,5~~1yy/N'az 32U-234.4240 ~~ ~/ 1Vi TO: Mayor aad City Council FROM: John P. Rodeberg, Director of Engineering/Public Works RE: Consideration of Consulting Contracts with SRF Consulting Croup DATE: 9/4/03 Attached is a copy of a Proposal for Services with SRF Consulting Group to complete the preliminary layout of Edmonton Avenue from TH 15 to School Road. We need to determine this route in order to properly locate the proposed Trunk Sanitary Sewer line. SRF will work with Pellinen Land Surveying to develop aright-of--way plat for the route. We also hope to hand out a proposal from SItE: Consulting to develop preliminary plans for the Golf Course Road extension proposed north of TH 7 near Modem Mazda. This work needs to be completed to allow proper platting and development in the adjacent areas. 'his work will also involve Pellinen Land Surveying, who will be under a separate agreement. Pnmcd on racyclcd pa~x~ - ~~~~ 1~~. ~4.,.i ~VJ1G- C ONSU~.TING GROUP, INC. . Transportation • Civil -Structural • Environmental • Planning • Traffic • Landscape Architecture • Parking Proposal No. P03364 August 28, 2003 Mr. John P. Rodeberg, P.E. Director of Engineering/Public Works CITY OF HUTCHINSON 111 Hassan Street S.E. Hutchinson, Minnesota 55350 Dear john: SUBJECT: PROPOSAL FOR PROFESSIONAL ENGINEERING Sr;RV ICES EDMONTON AVENUE EXTENSION FROM TH 15 TO VALE STREET Based on your request, we arc pleased to submit this proposal for professional engineering services in connection with the extension of Edmonton Avenue in the southwest area of Hutchinson. This project will determine the alignment of Edmonton Avenue from Dale Street to the existing terminus west of TH 15. . SCOPE OF SERVICES Based on our understanding of the project, we have developed the following list of tasks and estimated hours to complete the work: TASK Houxs 1. Project Management and Coordination 5 2, Prepare Concept Alignment Alternatives 20 3. Prepare Final Completed Alignment and Right of Way 40 Total: 6S We understand that the alignment will he rased by others to prepare a plat that will he used to acquire the rig}tt of way. We will also be available to assist the City in right of way negotiation and acquisition. We have not included t}te.5c tasks in this proposal but would be happy to provide these services to the City if so desired. C~ One Carlson Farkway North, Suite 15(l, Minneapolis, MN 55447-4443 Telephone (763) 475-0010 ^ Fax (763) 475-2429 ~ http://www.srfoonsulting.com An Equal Opportunity 1=.mf~luycr qCh~ Mr. John P. Rodeberg, P.E. - 2 - August 28, 2003 Bi1DGET ANA SCHEDULE Based on the scope of services, we estimate our cos[ to perform this work to be $6,000. We will not exceed this figure without your approval. We are prepared to start work imntedialely so that this alignment can be used for [he extension of the Southwest Arca Sanitary Sewer, Phase 3, lmprovement No. U28. BASIS OF PAYMFNI' We propose to he reimbursed far our services on an hourly basis for actual time expended. Other direct project expenses, such as printing, supplies, reproduction, etc. would be reimbursed at cost, and mileage would be reimbursed at the current allowable IRS-rate for business miles. Invoices are submitted on a monthly basis for work performed during the previous month. Payment is due within 30 days. CHANGES IN SCOPE OF SL+'RVTCES it is understood that if the scope or extent of work changes, the cost will be adjusted accordingly. Before any out-of-scope work is initiated, however, we will submit a budget request for the new work and will not begin work until we receive authorisation from you. NOTICE TO PIiOCEEA A signed copy of this proposal, either mailed or faxed to our office, will serve as our notice to proceed. Our fax numher is 763-475-2429. We sincerely appreciate your consideration of this proposal and look forward to working with you on this project. Please feel free to contact us if additional information regarding this proposal is required. Sincerely, APPROVER: SRP CONSULTING GROUP, INC. /~,~J~ (signxlure) ~""!/~+ ~ Name Ja es R. Dvorak, P.};. Title V ce President Date This cost proposal is valid for a period of 90 days. SRF reserves the right to . adja.ct its cost estimate after 90 mays from the date of this proposal. ~~~~ U9/U8/2003 15:01 FAX 7634752429 SRF CONSUL`i'iNG GROUP f~J 002 C UN'SULTING Cx ROUT, INC. Transportation -Civil • 5trurtural • Gnvironmenlal • Planning • Traffic • landscape Architecture • Parking Proposal No. P03379 September 8, 2003 Mr. Jahn P. Rodeberg, P.E. Director of Engineering/Public Works CITY OF I lU'rCHiN50>t 111 Hassan Street Southeast Hutchinson, Minnesota 55350 Dear john: SUBJECT: PRGFOSAL FOR PROFESSIONAL. ENGINk.L"RING SERVICES GOLF CUt]RSE ROAD EXTENSION FROM Tll 7 TU 5TH A VEN[JE NORTHWEST Based on your request, we are pleased to submit this proposal fur professional engineering services in connection with the extension of Golf Course Road in the northwest area of Hutchinson. Our work will include preparation of a preliminary layout for a traffic circle at the M new intersection of Gvlf Cnursc Koad and 5th Avenue Northwest, the alignment and geometries of Golf Cnursc Road to TH 7, and right of way acquisition services for the partial acquisition of one parcel at TH 7. 5C4PE OF SERVICE5 Based on our understanding of the project, we have developed the following list of tasks and estimated hours to complete the work: TASK HGURS 1. Project Management and Coordination 10 2. Prepare Concept Traffic Circle Alternatives 20 3. Nrepare Final Completed Layout including Right of Way and Profiles 50 4. Right of Way Acquisition (one parcel) 30 Total: l 10 We understand that the alignment will be used by others to prepare a plat that will he used to develop the adjacent property. We have also assumed that the developer will provide us with digital property line, topographic and existing grades that we will use to complete the work. Work tasks for the right of way acquisition include title work, appraisal review and negotiation with the property owner. We understand the City will contract directly with the appraiser. One Carlson Parkway North, Suite 150, Minneapolis, MN 55447-4443 Telephone (763) 475-0010 ^ Fax (763) 475-2429 ^ http://www.srfconsulting.com An Equa! Opparnrnity Employer ~ ~ ~ ~`~ 09/08/2003 .15:01 I~AR 7639752429 SKF CONSULTING CROUP I~J 003 Mr. Iohn P. Radcberg, P.E. BUDGET AND SCHEDULE 2- September 8, 2003 13ascd on the scope of services, we estimate our cost to perform this work to be $11,000. We will not exceed this figure without your approval. We will start the work immediately after receiving the mapping from the developer and anticipate completing the layout in six (6) weeks. We will pursue the right of way acquisition inunediatcly thereafter. BASIS OF PAYMENT We propose to be reimbursed for our services on an hourly basis for actual time expended. Olher direct project expenses, such as printing, supplies, reproduction, etc. would be reimbursed at cost, and mileage would be reimbursed at the current allowable 1125 rate for business miles. Invoices are submitted on a monthly basis for work performed during the previous month. Payment is due within 30 days. C1-IANCES IN SCOPF. OF SERVICES . It is mtderstood that if the scope or extent of work changes, the cost will he adjusted accordingly. Before any oul-uC-scope work is initiated, however, we will submit a budget request for the new work and will not begin work until we receive authorization from you. NOTICE TO PRDCEEll A signed copy of this proposal, either mailed or faxed to our office, will serve as oux notice to proceed. Our fax number is 7G3~75-2429. We sincerely appreciate your consideration of this proposal and look forward to working with you on this project. Please Feel free w contact us if additional information regarding this propasalisrcquired. Sincerely, APPROVED: SRF CONSULTING~GRDUP, INC. I~I' I es R. Dvorak, P,E. ice President (signature) Name _ Title I]ate . This cost proposal is valid for a period of 90 days. SRF reserves the right to adjust its cost estimate after 90 days from the date of this proposal. ~oC~~) LJ C~ R55APPYRV CITY OF HUTCHINSON B Check Number AP Pa ment Re ister with Voids Check Dat 9/4/2003 - Ck Date T e Check # Vendor Name Amount 9/4/2003 PK 118495 ~ 11D847 1ST LINE/LEEWES VENTURES 750.00 9/4/2003 PK 118496 104022 EVEN-TEMP CONSTRUCTION 2200.00 9/4/2003 PK 118497 118849 GAYLORD OPRYLAND HOTEL 794.05 9/4/2003 PK 118498 102524 GOVERNMENT TRAINING SERVICE 100.00 9/4/2003 PK 118499 1D2961 HRA 2300.00 9/4/2D03 PK 118500 101869 HUTCHINSON, CITY OF 1203.50 9/4/2D03 9/4/2003 PK PK 118501 116502 101869 102573 HUTCHINSON, CITY OF MCLEOD COOP POWER 674.00 4000.00 9/4/2003 PK 118503 101942 MDRA 2D.DD 9/4/20D3 PK 118504 102653 MINNESOTA DEPT OF MOTOR VEHICL 4445.52 9/4/2003 PK 118505 11885D MINNESOTA HISTORICAL SOCIETY 80.00 9/4/2003 PK 118506 104280 MINNESOTA LIBRARY OONFERENCE 140.00 9/4/2003 PK 118507 104787 MNAPA 205.00 9/4/2003 PK 118508 1D2D52 QUALITY WINE & SPIRITS CO. 7217.33 9/4/2003 PK 118509 102614 STATE TREASURER 100.00 24229.40 Acccunt N # 24229.40 IMMEDIATE PAYS ~~ Void Amou L.~ ~. r PAYROLL ACCOUNT -Payroll of September 5, 2003 Period Ending' August 3D, 2003 FOR COUNCIL LIST ONLY -ELECTRONIC TRANSFER TO STATE AND IRS DO NOT ISSUE CHECKS FOR THIS PAGE AMOUNT PEID AGCT# NAME $18,106.90 99952034 WITH. TAX ACCOUNT $9,607.31 9995.2040 $2,812.33 9995.2242 $30,526.54 Sub-Total -Employee Gontrlbutlon $9,607,31 9995.2240 $2,812.33 9995.2242 $12,419.64 Sub-Total -Employer Cantributlon $x2,946.18 Grand Total - Withholding Tax Account DESCRIPTION Employee Contribution -Federal Tax Employee Contribution -SOC. Security Employee Contribution -Medicare Employer Contribution -Social Security Employer Contribution -Medicare $8,423.88 8995.2035 MN DEPT OF REVENUE $10,241.52 102815 9995.2241 PERA Employee Contribution -Pension Plan $12,311.40 102615 9995.2241 Employer Contribution -Pension Plan $22,662.92 Sub-Total -PERA $15.86 102815 9995.2243 PERA-DCP Employee Contribution -Pension Plan $15.86 102815 9995.2241 Employer Contribution -Pension Plan $31.72 Sub -Total -DCP $22,564.64 GRAND TOTAL -PERA 1 i r 1 LJ r LJ Finance Director Approval ,. r~ ~J R55APPYR V CITY OF HU TCHINSON . _ _ ey Check N umber AP Pa ment Register with Voids_ Check Date 9/5/2003 - _ . Ck Pate T e Check # Vendor Name Amount 9/9/20D3 PK 118511 101915 A.H. HERMEL COMPANY 57.94 9/9/2003 PK 118512 102126 ACE HARDWARE _ 1,226.54 9/9/2003 PK 118513 _ 102217 AEM MECHANICAL SERVICES, ING 566.15 9/9/2003 PK 11$514 118165 AITKIN FEED & FARM_ SUPPLY 700.00 9/9/2003 PK _118515 _ _ 114880 AMERICAN LEGION POST #428 92.50 9/9/2003 PK 118516 101847 AMERICAN PAYMENT CENTERS 74.48 9/9/2003 PK 118517 1D1$67 AMERICAN WATER WORKS ASSN_ _ 124.00 9/9/2003 PK 11851 B _ 102430 AMERIPRIDE LINEN & APPAREL 198.93 223 20 9/9/2003 PK 118519 1D5204 ARGTIC GLACIER PREMIUM ICE . 9/9/20D3 PK 118520 118738 ENTIFIG INC ARROWHEAD SCI 23.58 _ 0 9/9/20D3 PK 118521 11)2480 B. W. WELDING 4,975.0 _ 9/9/2003 PK 118522 118$82 BASKETBALL ASSOC 350.00 9/9/2003 PK 118523 102943 BAUERLY COMPANIES 136,112.9D _ 9/9/2003 PK 118524 112572 6ECKER UNDERWOOD INC 7,400.00 _ _ 9/9/2003 PK 118525 118868 eELTRAMI COUNTY GOURT ADMIN 556.00 9/9/2D03 PK 118526 102039 BENNETT OFFICE TECHNOLOGIES 15.98 9/9/2003 PK 118527 _ 103154 BERG-JOHNSON ASSOG _ _ _.425.34 9/9/2003 9/9/2003 9/9/2D03 PK PK PK _.. 118528 118529 118530 _ 118881 101987 1p3349 - BLUMBERG, LISA BRANDON TIRE CO BRANDY GARMET LETTERING 35.D0 253.27 1,BQ2.75 9/9/2003 PK 118531 _ 118880 BROOKS, DOUG 35.00 9/9/2003 PK 118532 102456 C & L DISTRIBUTING 33,186.75 9/9/2003 PK 118533 104512 GALIFORNIA CONTRAGTOR_S SUPPLIE _ 99.80 9/9/2003 PK 11$534 118888 CAPE GOD BRASS 201.34 _ 9/9/2003 PK _ 118585 102092 _. CARR FLpWERS _ 5775 _ 9/9/2003 PK 118536 103014 _ CDI OFFICE PRODUCTS LTD 816.91 9/9/2003 PK 118537 102253 CENTRAL MCGOWAN _ .190.86 9/9/2003 PK 118538 110865 INC CHOICEPOINT SERVIGES 92.00 __ _ ._ _ 9/9/2003 PK 118539 101927 CHRISTENSEN REPAIR 16.00 9/92003 PK 11854D ~ 105423 CINDY'S HOUSE OF FLORAL DESIGN 36.48 9/9/2003 PK 118541 _ 118877 _... GLOBES, TOM 33.00 9/9/2003 PK 118542 1D2741 COBORN'S INCORPORATED 797.90 9/9/2003 PK 118543 1D5295 N COLORLYNE DIRECTORIES OF M 741.00 _ _ 9/9/2003 PK 118544 117879 CORNWELLTOOLS _ 21.25 9/9/2003 PK 118545 102484 CORPORATE EXPRESS 17.21 9/9/2003 PK 118546 102P89 CROW RIVER GLASS 283.44 9/9/2003 PK 118547 1p2220 CROW RIVER PRESS INC 187.7p _ _ 9/9/2003 PK 118548 102121 CROW RIVER VET GLINIC _ _ 363.04 9/9/2003 PK 118549 103815 CRYSTEEL TRUCK EOUIP 77,207.97 9/9/2003 9/9/2003 PK _ PK 118550 118551 _104377 _ 104469 CUSTOM PRODUCTS & SERVICES _ CZECH, RANDY 29.93 -- 6fi.09 9/9/2003 •PK 118552 102721 _ DASCHER, DUANE SO.DO 9/9/2003 PK 118553 102488 DAY DISTRIBUTING _ .... 3,487.87 _ .. 9/9/2003 PK 118554 1D5182 DOBRATZ,CHRIS 651.fi8 9/9/2003 PK 118555 101950 DOSTAL, ROSA _.. ._ __. _30.00 9/9/2003 PK 118556 118889 DPMS _ 7fi.15 9/9/2003 PK 118557 103753 _ DUBOIS CHEMICALS __ - - -- 1,750.22 - 9/9/2003 PK 118558 104095 DUECO 423.64 _ 9/9/2003 PK 118559 102236 DUININGK EROS ING. 52. 6,917.57 9/9/2003 PK 118560 102647 DYNA SYSTEMS 1,457.57 9/9/2003 PK 118561 __102324 EARL F. ANDERSEN, ING _ 631.01 9/9/20D3 PK 118562 104415 EARTH TECH 38,579.93 C~ 9/9/2003 PK 118619 105697 KOIC-0102 987.50 9/9/2003 _ PK _ 118620 __ 1025fi1 _ L & P SUPPLY CO __ _ 17.50 9/9/2003 PK 118621 101991 LAKES GAS CO. 452.18 9/9/2003 PK 118822 113179 LEAGUE OF MN CITIES-INS TRUST 67,987.00 9/9/2003 _ PK 118623 101974 LENNEMAN BEVERAGE DIST. INC 6,183.15 9/9/2003 PK 118624 101952 LITTLE CROW SHOOTING SPORTS 207.68 .... 9/9/2003 PK 118625 101984 . . LOCHER BROTHERS I_NC 34,437.73 9/9/2003 PK 118626 178885 M.D. PRODUCTS, INC 1,321.15 9/9/2003 _ PK 118627 102093 __ _ NIANKATO MACK SALES 1,251.12 9/9/2003 PK 11$628 109292 MARTY'S ROOFING. 875.00 9/9/2003 PK 118629 102716 MAY, JAKE 278.58 _ 9/9/2003 _ PK _ 118830 104852 MGC INC __ 24,020.00 9~9%20D3 PK 118631 118874 MCCLURE, LISA 38.88 9/9/2003 PK 118632 105673 MCKIMM, CLARICE 24.00 9/9/2003 PK 118633 102995 MCLEOp CDUNTY ATTORNEY 179.00 9/9/2003 PK 118634 _ 102489 MCLEOD COUNTY COURT ADMINISTRA 408.00 9/9/2003 PK 118635 11$072 MCLEOD_COUNTY TREASURER $40.00 _ 9/9!2003 PK 178636 102574 MEEKER WASHED SAND & GRAVEL 143.32 9/9/2003 PK __ 118637 112400 _ MENARDS - HUTCHINS_ON 45.57 9/9%2003 PK 118638 103231 METRO SALES _ 108.63 9/9/2003 PK 118639 104957 MIKE CHAVES TRUCKING 13,359.28 9/9/2003 PK 118640 102575 MINI RIFF 79.88 __ 9/9/2003 _ _ PK 118 641 102578 MINNESOTA GHIEFS OF POLICE 40.78 9/9/2003 PK _ 118642 108770 MINNESOTA DEPT OF ADMIN _164.02 _ 9/9/2003 PK ~ 1 18643 102653 MINNESOTA DEPT OF MOTOR VEHICL 6.OD 9/9/2p03 PK . 118fi44 102582 -- - - MINNESOTA ELEVATpR INC _ 86.94 9/9/2003 - PK 118645 105157 MINNESOTA SHREDDING 54.95 9/9/2003 PK 11864 6 114701 MINNESOTA SUPREME COURT 218.00 9/9/2003 PK _ _ 118647 102583 Y TESTING LAB MINNESOTA VALLE 1,285.50 9/9/2003 PK 1188 48 104787 _ _ MNAPA 120.00 9/9/2003 PK _ _ 118649 104583 __ _ MOBILE VISION ING 6,680.00 9/9/2003 PK 118650 102fi56 MODERN MAZDA 63.90 _ 9/9/2003 _ PK 118651 118869 _ MULCM & SOIL COUN_C_ IL 565.00 9/9/2003 PK _ 118652 101985 NAGY, RICHARD 220.00 9/9/2003 PK 118fi53 _ _102650 _ _ NCL 1,375.24 9/9/2008 PK 118654 118673 NELSON, ANGELA 30.00 _ 9/9/2003 PK _ 118655 118653 NORTHERN BALAN C E & SCALE 335.85 9/9/2003 PK 118656 118871 _ _ NORTHERN INN _ 49.28 9/9/2003 PK 118657 112503 NORTHLAND PALLET INC__ 1,778.40 9/9/2003 PK 118658 102592 OLSON'S LOCKSMITH 398.82 9/9/2003 PK .. _ 118659 _ 110194 __ OLSON, BRAD _. 300.00 _._ 9/9/2003 . PK 118660 103074 PARTIES PLUS 10.50 9/9/2003 PK 118661 102187 PAUSTIS & SONS WINE CO 1,373.92 __ 9/9/2003 PK _ _ 118662 117883 _ PETERS, SUSIE 15.00 9/9/2003 PK _ 116fifi3 __101853 PHILLIPS WINE & SPIRITS __ 1,405.15 9/9/2003 PK 118664 102373 PINNACLE DISTRIBUTING 547.17 _ 9/9/2003 PK _ _ 118665 103088 PLUNKETS PEST CONTROL 210.85 9/9/2003 PK 118666 102445 POSTMASTER fi$0.00 9/9/2003 PK - 118667 - 102232 PRAIRIE RESTORATION 686.51 9/9/2003 PK 118668 118864 PREGISION SIGNS _ 61.00 9/9/2003 PK _ 11866 9 102493 PREMIER TECH PACKAGING 91.61 9/9/2003 PK _ 118670 101862 PRINTS CHARMING __. _. 1,625.45 _ 9/9/2003 PK 118671 10259$ QUADE ELECTRIC 6>093.9fi 9/9/2003 PK _ 118672 102052 _ QUALITY W INE & SPIRITS CO. 2,423.11 9/9/2009 PK 118673 102398 R & R EXCAVATING 43,226.75 _ 9/9/2003 PK 118674 102424 RADIO SHACK 13.83 L J r~ L L. J 9/9/20D3 PK 118731 103980 ZARNOTH BRUSH WORKS 875.43 9/9/2003 PK 118732 _ _ 105571 _ ZEP MANUFACTURING CO 72.42 9/9/2003 PK 118733 101876 LIFE ASS. CO. AETNA VARIABLE 855.00 9/9/2003 PK 118734 1D1919 _ AMERICAN FAMILY INS CO. 137.10 9/9/2003 PK -- 118735 101$75 _ . .. GREAT WEST LIFE INS. CO. 300.00 9/9/2DD3 PK 11 8738 1D1872 _ H.R.L.A.P.R. _ 245.08 e/9/2D08 PK . 118737 102633 _ FiUTCHINSON, CITYdF 5,239.69 9/9/2003 PK _ 118738 102635 HUTCHINSON, CITY OF 529.D3 .. _ 9/9/2003 PK 118739 _ 101873 - ICMA RETIREMENT TRUST _. 3,697.23 9/9/2003 - PK 118740 1D2449 _ MINNESOTA CHILD SUPPORT PAYMEN 913.23 9/9/2003 PK 118741 _ _ 101914 NCPERS LIFE INS. __ 47_2.D0 9/9!2003 PK 118742 101877 PRUDENTIAL 75.00 9/9/2003 PK 118743 _ 102096 PRUDENTIAL MUTUAL FUNDS 30.OD 1,590.744.34 ~~ R55APPYRV CITY QF HUTCHIN5ON r By Check Numba AP Payment Register with Voids _ _ _ Gheck Oate _ _ 9/5/2008 - _ __ Ck Date Tye _ Gheck # Vendor Name Amount 9/9/2003 PK 118510 102136 13USINESSWARE SOLUTIQNS 665.40