2016-07-19 Council PacketCITY OF MENDOTA HEIGHTS
CITY COUNCIL AGENDA
July 19, 2016 – 7:00 pm
Mendota Heights City Hall
1. Call to Order
2. Roll Call
3. Pledge of Allegiance
4. Moment of Silence—In memory of Officer Scott Patrick (EOW July 30, 2014)
5. Adopt Agenda
6. Consent Agenda
a. Approval of July 6, 2016 City Council Minutes
b. Approval of July 6, 2016 Council Workshop Minutes
c. Approval of Temporary Liquor License for Holy Family Maronite Church for Sept 11, 2016
d. Approve Resolution 2015-61 Amend Res 2016-56 Accepting Work and Approving Final
Payment for Job #200514, Sibley Memorial Trail
e. Approve Resolution 2016-60 Accept Work and Approve Final Payment for Job #201505,
2015 Sewer Rehab Project
f. Approval of Claims List
7. Public Comments
8. Presentations - none
9. Public Hearing –none
10. New and Unfinished Business
a. Actions Related to Minnesota Department of Energy and Economic Development
Minnesota Investment Fund Grant and Loan for Prime Therapeutics, LLC
b. Ordinance 498 Amending Title 12, Chapter 1 of the City Code Concerning B-1 Limited
Business District Conditional Uses
c. Approve Job Description and Authorize Advertisement for Police Community Service
Officer/Student Intern
d. Park Shelter Re-roofing Discussion
11. Community Announcements
12. Council Comments
13. Adjourn
DATE: July 19, 2016
TO: Mayor and City Council
FROM: Mark McNeill, City Administrator
SUBJECT: Remembrance—Officer Scott Patrick
COMMENT:
INTRODUCTION
At its meeting of July 19th, the City Council and members of the audience will be asked to
observe a moment of silence in memory of Officer Scott Patrick.
BACKGROUND
Officer Patrick lost his life while in the service of others on July 30, 2014.
A memorial committee has been formed, and has met to discuss ways to commemorate the
sacrifice of Officer Patrick. The Committee has recommended that, in the short term, a moment
of silence be held at the second regular July meeting of the City Council. The second meeting of
July is the meeting which is the closest, and in advance, of the anniversary date.
In addition, a painting of Officer Patrick will be displayed at the meeting, and the United States
Flag will be flown at half-staff on July 30th.
Other ways to more permanently remember Officer Patrick are in process.
ACTION REQUIRED
Those in attendance at the July 19th City Council meeting will be asked to observe a moment of
silence to honor the memory of Mendota Heights Police Officer Scott Patrick.
_________________________
Mark McNeill
City Administrator
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CITY OF MENDOTA HEIGHTS
DAKOTA COUNTY
STATE OF MINNESOTA
Minutes of the Regular Meeting
Held Wednesday, July 6, 2016
Pursuant to due call and notice thereof, the regular meeting of the City Council, City of Mendota
Heights, Minnesota was held at 7:00 p.m. at City Hall, 1101 Victoria Curve, Mendota Heights,
Minnesota.
CALL TO ORDER
Mayor Krebsbach called the meeting to order at 7:00 p.m. The following members were present:
Councilmembers Duggan, Povolny, Petschel, and Norton.
PLEDGE OF ALLEGIANCE
Council, the audience, and staff recited the Pledge of Allegiance.
AGENDA ADOPTION
Mayor Krebsbach presented the agenda for adoption. Councilmember Duggan moved adoption of the
agenda.
Councilmember Norton seconded the motion.
Ayes: 5
Nays: 0
CONSENT CALENDAR
Mayor Krebsbach presented the consent calendar and explained the procedure for discussion and
approval. Councilmember Duggan moved approval of the consent calendar as presented and
authorization for execution of any necessary documents contained therein, pulling items a) Approve
June 7, 2016 City Council Minutes; e) Approve the Purchase of Tasers; i) Approve Joint Powers
Agreement with Dakota County for Traffic Signal Improvements of Interstate-494 and Pilot Knob Road;
k) Approve Personnel Action Items; l) Approval of Memorandum of Agreement with MNPEA; and
m) Approve Ordinance 497 Concerning Massage Therapy Businesses in B-1 Limited Business District.
a. Approve June 7, 2016 City Council Minutes
b. Approve June 21, 2016 City Council Minutes
c. Acknowledge June 28, 2016 Planning Commission Minutes
d. Approve Renewal of Massage Therapist License for Mariah Bowen
e. Approve the Purchase of Tasers
f. Approve Out of State Travel for Police Department- MAAG Training
g. Approve Out of State Travel for Police Department- MOCIC Training
h. Approve Resolution 2016-56 Final Payment of Sibley Memorial Hwy Trail
page 4
i. Approve Joint Powers Agreement with Dakota County for Traffic Signal Improvements at Interstate
494 and Pilot Knob Road
j. Approve Ordinance 500 Placement of Stop Signs on Laura Street at 1st Avenue
k. Approve Personnel Action Items
l. Approval of Memorandum of Agreement with MNPEA
m. Approve Ordinance 497 Concerning Massage Therapy Businesses in B-1 Limited Business District
n. Approve of Claims List
o. Approve Treasurer's Report
p. Approve Change of Start Time for August 2, 2016 Council Meeting
Councilmember Petschel seconded the motion.
Ayes: 5
Nays: 0
PULLED CONSENT AGENDA ITEMS
A) APPROVE JUNE 7, 2016 CITY COUNCIL MINUTES
Mayor Krebsbach noted that the June 7, 2016 City Council Minutes had been tabled at the last Council
meeting. Councilmember Duggan also noted the misspelling of Mr. Joe Seidel’s name to be corrected.
Councilmember Petschel moved to approve June 7, 2016 City Council Minutes with the correction as
noted.
Councilmember Duggan seconded the motion.
Ayes: 5
Nays: 0
E) APPROVE THE PURCHASE OF TASERS
Councilmember Duggan asked if there were any guarantees that come with the Tasers. The reply was
that they are guaranteed for one year.
Councilmember Petschel moved to approve the purchase of Tasers as presented.
Councilmember Duggan seconded the motion.
Ayes: 5
Nays: 0
I) APPROVE JOINT POWERS AGREEMENT WITH DAKOTA COUNTY FOR TRAFFIC SIGNAL
IMPROVEMENTS AT INTERSTATE-494 AND PILOT KNOB ROAD
Councilmember Duggan noted that he did not have a problem with this agreement; however, he asked if
staff had any requests for a flashing yellow at Dodd Road South getting onto the 494 ramp. City
Engineer John Mazzitello answered that new signals at the I-494 ramps on Dodd Road are part of the
2018 MnDOT project.
page 5
Councilmember Duggan moved to approve the Joint Powers Agreement with Dakota County for Traffic
Signal Improvements at I-494 and Pilot Knob Road.
Councilmember Petschel seconded the motion.
Ayes: 5
Nays: 0
K) APPROVE PERSONNEL ACTION ITEMS
Councilmember Duggan, referencing the job description for the Police Captain, suggested the following
changes:
• Essential Duties, Item B, “Oversees the recruitment and selection of all police personnel.”
• Essential Duties, Item C, “Forecasts personnel and equipment needs based upon careful
thorough analysis.”
• Essential Duties, Item E, “Meets with departmental personnel to analyze and solve problems as
needed or required.”
• Essential Duties, Item G, “Monitors the productivity of police divisions by analyzing reports and
statistics compiled by department supervisors as needed or required.”
• Performance Criteria, the first line, “Reports provided to the Police Chief are timely and reflect
considerationresponse/analysis of existing conditions and objectives.”
• Desired Qualifications, Item D, “Substantial Ability to use research techniques and performance
indicators in evaluating and recommending improvements in department operations”.
• Knowledge/Skills/Abilities Required, Item K, “Ability to evaluate situations, improviseprovide
solutions with available resources and adapt to a changing environment.”
Councilmember Petschel moved to approve Personnel Action Items with the changes to the Police
Captain job description as recommended.
Councilmember Duggan seconded the motion.
Ayes: 5
Nays: 0
L) APPROVAL OF MEMORANDUM OF AGREEMENT WITH MNPEA
Councilmember Norton explained that he wished to point out that this is one step, along with many other
steps, that the Council and the Police Department is taking to try to address some of the issues that they
have been dealing with. He was glad to see that the unions are agreeing with the change in the shifts so
they can provide better coverage for the citizens and also the supervisory roles.
Councilmember Norton moved to approve the Memorandum of Agreement with MNPEA.
Councilmember Petschel seconded the motion.
Ayes: 5
Nays: 0
page 6
M) APPROVE ORDINANCE 497 CONCERNING MASSAGE THERAPY BUSINESSES
IN THE B-1 LIMITED BUSINESS DISTRICT
There were no discussions on this topic.
Councilmember Norton moved to adopt Ordinance 497 Concerning Massage Therapy Businesses in the
B-1 Limited Business District.
Councilmember Duggan seconded the motion.
Ayes: 5
Nays: 0
PUBLIC COMMENTS
Mr. Paul Portz, 1058 Avanti Drive, is the President of the Dakota County Chapter of the University of
Minnesota Alumni Association. He provided background information on this chapter. They fund a
scholarship for a high school student from Dakota County, which is chosen by the Alumni Association.
Mr. Portz announced that the recipient this year is Mr. Anthony Kammeyer from Henry Sibley High
School, who will enroll in the College of Liberal Arts at the University of Minnesota this fall.
Mr. Ron Moser, Senior Police Consultant with McGrath Consulting, explained that his firm was hired to
complete the Police Study. As a follow up to that, they are providing interim services for the City until
the Police Captain is hired.
Mr. Moser provided some additional comments about the firm by noting they are headquartered in
Wonder Lake, Illinois and have been in business since 2000. They specialize in public sector consulting;
primarily police, fire, EMS, HR, and administrative. As the Senior Police Consultant, his background is
primarily municipal policing for over 30 years.
Mr. Moser had started his duties today as the interim police administrative supervisor.
PRESENTATIONS
No items scheduled.
PUBLIC HEARING
No items scheduled.
page 7
NEW AND UNFINISHED BUSINESS
A) RESOLUTION 2016-57 CONDITIONAL USE PERMIT AT
675 – 1ST AVENUE, PLANNING CASE 2016-19
Planner Nolan Wall explained that the applicant was seeking a Conditional Use Permit to construct a
roof-mounted solar energy system at 675 1st Avenue. The subject parcel is approximately 19,000 square
feet and contains a single-family dwelling and is guided as low-density residential on the
Comprehensive Plan.
The proposed solar system is compliant with the all applicable Code standards and would be mounted on
top of the attached garage structure, would not extend beyond the highest peak of the structure, would
not extend beyond the exterior perimeter of the building, would be bracket-mounted to the flat roof
structure, would occupy approximately 55% of the total applicable roof section, would match the roof
color, and would have anti-reflective gaffs. It would also be compliant with the applicable safety and
electrical code standards.
Councilmember Petschel moved to adopt RESOLUTION 2016-57 APPROVING A CONDITIONAL
USE PERMIT AT 675 1st AVENUE with conditions as stated in the resolution.
Councilmember Povolny seconded the motion.
Ayes: 5
Nays: 0
B) RESOLUTION 2016-58 LOT LINE ADJUSTMENT AT
1787 LEXINGTON AVENUE, PLANNING CASE 2016-20
Planner Nolan Wall explained that the applicant, on behalf of both property owners, was seeking
approval to adjust a shared interior lot line and vacate the existing drainage and utility easements.
The existing parcels are 65,081 square feet and 16,544 square feet and are guided low-density residential
on the Comprehensive Plan. The property owners of 1787 Lexington Avenue are interested in selling
5,187 square feet of the existing rear yard to the owners of 1122 Orchard Circle.
Planner Wall shared an image of the survey showing the proposed area in question that would be
adjusted to be part of Lot 6. According to both parties, the natural topography of the area in question is
better suited to be located on Lot 6 and would also ensure that the existing vegetative buffer would
remain between the two properties. City Code does allow subdivision of parcels provided that the
resulting lots are compliant with the requirements in the applicable zoning district. The proposed
adjustment in this case does not create non-conformity with the applicable R-1 district lot standards.
The accessory structures that are noted on the survey are proposed to be removed. The requested
vacation of the existing drainage and utility easement that runs along the current interior lot line would
be proposed to be transferred to the new lot line. The existing drainage and utility easement that runs
along the northern boundary would be extended all the way through the new property line.
page 8
Councilmember Duggan moved to adopt RESOLUTION 2016-58 APPROVING A LOT LINE
ADJUSTMENT AT 1787 LEXINGTON AVENUE AND PID# 27-81275-02-060 based on the findings
of fact and conditions as stated in the resolution.
Councilmember Povolny seconded the motion.
Ayes: 5
Nays: 0
C) ORDINANCE 498 AMENDING TITLE 12, CHAPTER 1 OF THE CITY CODE CONCERNING
B-1 LIMITED BUSINESS DISTRICT CONDITIONAL USES
Planner Nolan Wall explained that the applicant was requesting amendments to Title 12-1F-1-B of the
City Code concerning Conditional Uses in the B-1 Limited Business District. The applicant owns the
property at 2500 Lexington Avenue South, and formally occupied the existing 13,940 square foot
office/warehouse building, which is now currently vacant.
The building was constructed in 1991 as a gymnastics facility and was issued a Conditional Use Permit
at that time for a private athletic facility. Prior to purchasing the building, the applicant did appear
before the City Council in 2006 to request an interpretation of the B-1 zoning requirements. City
Council determined that Laser Technologies, which was the applicant’s business, was permitted as an
“offices of a general nature” use. The applicant no longer operates the business but is now marketing the
building for sale or for lease. As a result, the current permitted and conditional uses in the code have
proved problematic in attracting new users based on how the building is constructed and the potential
code amendment process they would be required to do.
The proposed amendment does provide clarity in what uses may or may not occupy the space and would
allow future interested property owners to potentially pursue a Conditional Use Permit process without
having to first go through a code amendment process.
In response to the applicant’s proposal, staff prepared a recommended draft ordinance for review and
discussion. The proposed draft includes commercial recreation when conducted within a completely
enclosed building, and offices of general nature where the operations include warehousing from the site.
Planner Wall then provided definitions of the two proposed amendments.
Mayor Krebsbach voiced her opposition to allowing warehousing because of the potential for semi-truck
traffic in the area and moved to deny ORDINANCE NO. 498 AMENDING TITLE 12, CHAPTER 1,
ARTIC LE F OF THE CITY CODE CONCERNING B-1 DISTRICT CONDITIONAL USES.
Councilmember Petschel requested that Planner Wall finish his presentation before proceeding on any
motions. Mayor Krebsbach withdrew her motion.
Planner Wall continued by providing some background for this case. According to the applicant this
particular building contains approximately 8,300 square feet of warehouse space, in addition to the
office space. Laser Technologies did use this warehouse space as a showroom and staging area. There
was no direct retail from the site. Staff’s proposed amendment would allow warehousing in conjunction
with a permitted office use but would still prohibit retail sales.
page 9
Planner Wall shared an image of the area showing the surrounding B-1, commercial, and industrial
zoned properties. In response to a question raised by Councilmember Norton, Planner Wall noted that
warehousing is currently allowed in the industrial district, which is located directly across Lexington
Avenue from the subject property.
Councilmember Povolny noted that the subject property is also located across the street from City’s
Public Works department, which has truck traffic. He asked what the load restrictions are on Lexington
Avenue. City Engineer John Mazzitello replied that Lexington Avenue is posted as a 9-ton per axle road.
The 3M building located on Lexington and Mendota Heights Road also has semi-truck traffic.
Councilmember Povolny also noted that just because it could be allowed in this area, it may not be
feasible in other areas of the city that are zoned B-1. Planner Wall explained that this building has no
loading docks; it has two small double doors. This building would need to have improvements made in
order for it to be a true warehouse.
Mayor Krebsbach pointed out that the proposed ordinance would open all areas zoned as B-1 to
businesses with semi-truck traffic. Planner Wall noted that, with a Conditional Use Permit, there is the
ability to place site-specific conditions. Mayor Krebsbach explained that she was still opposed to this
proposed ordinance amendment.
Councilmember Duggan moved to adopt ORDINANCE NO. 498 AMENDING TITLE 12, CHAPTER
1, ARTICLE F OF THE CITY CODE, CONCERNING B-1 DISTRICT CONDITIONAL USES.
As a point of clarification, Councilmember Petschel asked as each proposal would come forward for
warehousing in the B-1 district, because it would be approved as a use, would it not require any scrutiny
in terms of whether or not it would have a harmful effect on the surrounding neighborhood. Planner
Wall replied that what was being proposed right now is simply to amend the code to potentially allow
this use by Conditional Use Permit. Therefore, if a user did come forward to do warehousing from this
property, they would be required to get a Conditional Use Permit.
Mayor Krebsbach noted that it is very difficult to deny a Conditional Use and Planner Wall agreed.
However, if the analysis of a Conditional Use request comes back that it would have a negative impact
on surrounding properties, then that could be a reason to deny a Conditional Use Permit request.
Mayor Krebsbach asked if it would be better to rezone the property than to amend the Ordinance for the
B-1 district. Planner Wall replied that this could be an option; however the property owner had applied
for a code amendment. Rezoning could certainly be another option. Warehousing is a permitted use in
the Industrial District, which essentially is what this use would probably fit in best.
Councilmember Norton seconded the motion.
Planner Wall noted that the applicant and business owner was in attendance and could answer any
additional questions from the Council. He also commented that there is room for discussion of adding
additional conditions to the proposed Conditional Use regarding warehousing.
page 10
Councilmember Duggan agreed to withdraw his motion.
Councilmember Norton agreed to withdraw his second of the motion.
The applicant, Mr. Sean Carey, came forward to address the Council. He stated that he has been
operating a business for 10 years at this location and had no negative impact to the neighborhood. They
have been warehousing and had a showroom. They used smaller trucks because they do not have
loading docks. It was a very successful business which he just sold to a competitor. However, he still
owns the building.
Councilmember Norton moved to table ORDINANCE NO. 498 AMENDING TITLE 12, CHAPTER 1,
ARTICLE F OF THE CITY CODE CONCERNING B-1 DISTRICT CONDITIONAL USES.
Councilmember Petschel seconded the motion.
Ayes: 5
Nays: 0
D) MENDOTA PLAZA SECOND ADDITION CONDITIONAL USE PERMIT FOR PLANNED
UNIT DEVELOPMENT AMENDMENT, PRELIMINARY/FINAL PLAT,
AND WETLANDS PERMIT
Planner Nolan Wall explained that staff was not asking for any action in consideration of this request
other than the action to table. This was due to the fact that the applicant does not have a MnDOT right-
of-way access permit. However, staff desired to present all of the information to Council and for them to
discuss any concerns.
Councilmember Duggan asked how the 60-day rule for applies to this application. Planner Wall replied
that the current action deadline for this case has been extended by 120 days and will expire on August
24, 2016. If the required information is not available by the August 16, 2016 City Council meeting to
make a decision, the applicant would have to be agreeable to an extension into September or October.
Upon a question from Councilmember Povolny, Planner Wall stated the applicant had a right-of-way
access permit as part of their original PUD but that access permit has since expired. They are in the
process of reapplying for that access permit.
Planner Wall explained that the applicant was seeking approval to amend the Planned Unit Development
(PUD) final development plan, including preliminary and final plat and wetlands permit requests. The
proposed development site is approximately 4.96 acres of undeveloped land in the northeast corner of
the existing Mendota Plaza mixed use development. It borders Highway 110 to the north and the Dodge
Nature Center property to east. The Village of Mendota Heights is located directly across Highway 110
to the north.
The proposed project includes integrated commercial and high-density residential developments with
connections to the existing retail uses and planned off-street trail systems, as well as a public gathering
space. The development team includes Mendota Mall Associates and Paster Properties, who is the
owner/manager of the existing shopping center and the subject parcels in question. At Home Apartments
will be the owner/manager of the proposed high-density residential development and is also a part of the
development team.
page 11
The proposed project would be constructed in two phases. Phase One would include construction of the
private access drive, high-density residential development, all public amenities, landscaping, and
preliminary grading on the northwest portion of the site. Phase Two would then include construction of
the proposed commercial development and final grading. It is anticipated that Phase One would
commence as soon as possible after City and entitlement approvals and would be completed in
approximately 18 months. Phase Two would commence as soon as future tenants are committed to
leases and then each commercial building would take approximately 8 to 12 months to construct; but
that may not occur concurrently.
As part of a Planned Unit Development process, the applicant did receive approvals for a master plan of
the entire mixed-use site, including subsequent amendments. According to the Comprehensive Plan, the
subject parcels are guided as mixed-use PUD and those are intended to allow for mixed-use
developments that combine residential, retail, and commercial uses into a coordinated planned
development project. It was worth noting that the latest Metropolitan Council Systems Statement
projects the City to add 276 residents by 2040; based on the 2014 population estimates. Construction of
this proposed 149-unit high-density residential development could account for a significant amount of
the year 2040 forecast in population and household increases.
According to the applicant, this proposed project does include market-rate units, but would not include
affordable units that satisfy additional Metropolitan Council requirements. This proposed development
may also satisfy potential demand for rental units in Mendota Heights. The availability of desirable units
may also appeal to existing homeowners who are looking to downsize while staying in the community,
which may stimulate turnover of the existing single family housing stock. For these reasons the
proposed mixed-use project does fit many of the land use and housing goals and policies that are
included in the Comprehensive Plan.
The applicant is requesting preliminary and final plat approval for the Mendota Plaza Expansion 2nd
Addition, which also includes vacation of existing drainage and utility easements. Planner Wall then
shared the details of the proposed uses which included restaurant use, high-density residential,
stormwater pond, access drive and open space.
The details of the preliminary and final plat are tied to the proposed PUD amendment. The applicant
requested to vacate several existing drainage and utility easements from the existing plat, which would
essentially be resolved through approval of the new plat. Additional easements may be required by St.
Paul Regional Water Service (SPRWS) that are not identified on the proposed plat. As required by the
City Code, the applicants also submitted these planning documents to MnDOT for review.
The applicant is in the process of applying for and acquiring a new access permit to Highway 110. City
Council cannot approve the proposed requests until the right-of-way access permit has been obtained
from MnDOT.
The code does require PUD amendments to be considered by Conditional Use Permit. The amended
PUD does contain the following land uses; commercial, high-density residential, and the existing
outlots, the various building areas, and parking requirements.
page 12
Planner Wall shared additional information of the Comprehensive Plan, Preliminary and Final Plat,
Existing PUD Final Development Plan, Proposed PUD Final Development Plan Amendment,
Commercial Development, High-Density Residential Development, Off-street Parking, Signage,
Landscaping, Lighting, Wetlands Permit, Dakota County Trail, Dodge Nature Center, and Development
Agreement.
In regards to parking spaces, Councilmember Duggan noted that for some previous developments the
Council had requested proof of parking to accommodate the need down the line. Planner Wall replied
that at this point, the applicant does not know the specific restaurant user, which is why it is difficult to
determine the amount of parking needed. However, staff has analyzed what their maximum scenario
would be for the square footage of restaurant space and worked backwards to find an appropriate
parking number that would satisfy the demand for that maximum amount of square footage.
Councilmember Duggan requested clarification on the location and depths of the compact parking stalls,
which Planner Wall agreed to provide.
Planner Wall shared images of the proposed elevation of Buildings One and Two, including the drive-
thru lane of Building One that was included in the original PUD.
In regards to the high-density residential use, Planner Wall noted that it would include 149 units on 2.2
acres along the eastern property boundary line, perpendicular to Highway 110 and abuts the Dodge
Nature Center and the proposed Mendota-Lebanon Hills Greenway Trail. The proposed building
contains 99 one-bedroom units and 50 two-bedroom units. The proposed development also includes an
open space and public gathering area constructed over an underground stormwater basin, and a parking
area in the front of the building. The proposed resident amenities for the development would include a
two-story entry lobby (which includes a lounge and office spaces), large kitchens, in-unit laundry,
balconies, walk-in closets, high-speed Internet, wood cabinets, granite counters, wood-style flooring,
and stainless steel appliances. There is also proposed to be a community room, fitness facility, on-site
office staff, an outdoor courtyard that would include a swimming pool and deck, hot tub, gazebo, and
grilling area. There is also proposed to be a rooftop deck with an adjoining community room, bike
storage areas, bike hub including repair tools, dog washing station, and sidewalks and greenway trail
connections.
Councilmember Duggan asked if the fire department and Fire Marshal have commented on the roof top
patio or community space. Planner Wall replied that the Fire Department did review this application and
provided comments. He was unaware of any specific discussions regarding the roof top patio. Planner
Wall agreed to have additional discussions with the Fire Chief and Fire Marshal.
Planner Wall mentioned that the lot area is significantly less than what would be required in an R-3
district. The minimum proposed unit floor area for a one-bedroom starts at 618 square feet, slightly
smaller than what is required in an R-3 district. The two-bedroom units’ minimum square footage is
slightly higher. Planner Wall stated that the underlying zoning is actually mixed use PUD, the use itself
is a use that is allowed in the R-3 zoning district. That is the reason for the comparing the use with the
R-3 requirements. The Council has discretion to determine what the density will be for this
development as a separate issue that is not addressed within the R-3 district requirements.
page 13
Councilmember Duggan noted concerns about the setbacks for the swimming pool. The setbacks are
significantly less than the applicable city code standards. Planner Wall replied that there was an analysis
of the existing swimming pool regulations for multi-family apartment dwellings and the standards not
being met. Again, that can be determined to be acceptable or not as part of the PUD.
Councilmember Duggan also raised a question about a utility line being installed under the swimming
pool. Planner Wall replied that a private utility line is proposed to run underneath the swimming
pool/deck area. It is a private utility and would be at the property owner’s risk. Councilmember Duggan
noted he would like to see a disclaimer included in the development agreement to protect the City.
For the original development, Councilmember Duggan asked if there was a limit to the number of pylon
signs. Planner Wall replied that he was unaware of any limitations, but noted the applicant would have
to submit a comprehensive signage plan for approval of any signage.
Mayor Krebsbach asked if the Council needed to approve this development by August 16, 2016. Planner
Wall replied that the Comprehensive Signage Plan would be included as part of an amendment to the
Development Agreement, which is a condition of approval that would be required to follow any action
to approve the Planned Unit Development Amendment. The amendment to the Development Agreement
would be the time to iron out issues related to operations, maintenance, signage, and additional utility
easements.
Councilmember Duggan requested that a copy of the original Development Agreement be provided to
the Council so they can have a sense of the direction they are going and what impacts there may be in
that in relation to the proposed changes. Planner Wall agreed to provide that to the Council.
In regards to the Trip Generation Comparison Memo, Councilmember Duggan asked if the original
proposal included the four-story building and the other two buildings and restaurants. Planner Wall
replied that staff has copies of that information and believed that it was addressed in the report. He also
noted that the original PUD that was approved in 2009 included an office use for this particular area,
which probably contributed to additional morning trips that are not the same with the proposed use not
having an office component.
Mayor Krebsbach, in regards to the elevation, asked if the hill was going to be cut down or is the
proposal for the apartments to sit on top of the hill. City Engineer Mazzitello stated that the changes to
the grade may be altered by the trail, but the proposed development in the southeastern corner – the very
southern end of the apartment building – does sit behind a retaining wall. The building is cutting into
that hill.
Mayor Krebsbach asked if this would be a flat area and would the area where the restaurants would be
located be filled in. Engineer Mazzitello replied that right now there are four stories of apartments and
there are two underground parking decks. Both underground parking decks will be exposed at the
southern end of the building. Neither underground parking deck will be exposed at the north end of the
building. The lowest point in the site will be the southern end of the apartment building. The northern
end of the apartment building and the commercial area will be at approximately the same elevation –
matching or slightly higher than the pavement of Highway 110 but not the ditch.
page 14
The Planning Commission did unanimously recommend approval of the proposed requests and provided
an additional condition for consideration by the City Council concerning off-street parking, which would
be included in a final resolution for approval. However, in the absence of an approved MnDOT right-of-
way access permit, staff recommended that the City Council move to table action on the proposed
requests at this time.
If the applicant by the end of the City’s 120-day window does not receive the MnDOT right-of-way
access permit, the Council would still need to act on this request.
Mr. John Kohler of Paster Properties, and Pete Keely of Collage Architects, addressed the Council’s
concerns. To answer Councilmember Duggan’s question about the two restaurant buildings aligning,
Mr. Kohler replied that they are actually only about 15 feet apart and that is only to allow the drive-thru
lane to come around the back. Therefore, visibility from Highway 110 should not be an issue for
eastbound traffic.
In regards to the parking stalls overlapping the sidewalk, Mr. Kohler pointed out the location of the
compact stalls, which are the farthest away from the sidewalk. He also noted that the sidewalk is 10-feet
wide along the building frontage.
Mr. Kohler noted that the open space above the retention pond would be designed in such a way as to
enable the parking of a fire truck, if needed. As for the utility line under the pool, it would have been a
6-inch PVC storm drain; however, it has now been moved and will no longer be located under the pool.
Mayor Krebsbach, in regards to the hill discussion, stated that it does not seem that the building is being
designed to take advantage of Dodge Nature Center, other than the tenants who face it. She stated she
would like the design to reflect that it is next to the Dodge Nature Center. If they would design the
building so that it fits in better, she would be more inclined to approve it. She agreed that they have a
good building for the tenants with the common space, the pool; however, it also has to work for the City.
Continued discussion of the proposed grade, elevations, and design occurred. Mayor Krebsbach
requested some additional visualization be provided, with particular focus on the grading and the views.
The architect agreed to provide this additional information.
Councilmember Povolny noted that the southeast corner of the building is proposed to be 70 feet tall and
asked how the fire department would be able to reach a fire at that height. The reply was that the 70-foot
tall portion is actually on the front side of the building and there would be a sprinkler system in the
building. Councilmember Povolny again noted that there is no way for a fire truck to get to the back of
the building and they do not have 70-foot ladders. The architect agreed to provide more information on
this, especially since the Dodge Nature Center brought up the same concern. Planner Wall also agreed to
speak with the fire department to ascertain how they would access the back of the building.
Councilmember Petschel asked if there were any specific soundproofing plans for this building. The
reply was that the insulation factor is really high in this building. They are using 2x8 exterior walls and
filling the cavities with insulation. The siding itself actually works for mitigating noise, and an upgraded
window will also be installed. On the roofs, the code standard is an R23 and they typically put in an
R38. The majority of the dryer vents would be coming out of the side of the building with a few pieces
of rooftop equipment. They generally try to keep the penetrations in the top of the building to a
page 15
minimum. The walls are double-stud walls and are filled with insulation. They are very careful about
putting junction boxes or outlook boxes back-to-back to prevent sound transfers and they put those on
the sound acoustical plates and fill the cavities. It is a highly engineered system to make sure that the
sound does not go through.
Councilmembers asked additional questions regarding the width of the corridors, location of elevators
and stairs, and other egress issues. Councilmember Duggan requested that they do their best to make the
parking to a ratio of 2.0, rather than 1.3 or 1.6.
Councilmember Norton asked, in the original concept that was brought forward, if there was a two
apartment building option. It was confirmed that there was a two apartment building option included in
the original concept plan.
Councilmember Petschel moved to table the MENDOTA PLAZA SECOND ADDITION
CONDITIONAL USE PERMIT FOR PLANNED UNIT DEVELOPMENT AMENDMENT,
PRELIMINARY/FINAL PLAT, AND WETLANDS PERMIT.
Councilmember Duggan seconded the motion.
Ayes: 5
Nays: 0
E) CITY BUDGET INFORMATION / SET BUDGET WORKSHOP DATES
City Administrator Mark McNeill explained that staff was seeking direction on setting workshop dates
for the preparation of the fiscal year 2017 budget. Staff is looking at having the budget workshops in
August. The Council needs to adopt the preliminary levy and budget by September 30, 2016.
Mr. McNeill shared the following points:
• The City has retained its AAA bond rating, which is something that only about 25 cities in
Minnesota have.
• The City has also taken a couple of steps earlier this year to assure its long-term financial health.
o Ehlers and Associates completed a 10-year financial management plan.
o Dealt with a couple of potential issues in terms of long-term capital items.
• The tax base is growing.
• From a legislative standpoint, the City is going to be able to at least get a bill introduced regarding
fiscal disparities and try to change the language for which Mendota Heights has been a net
contributor ever since that law was enacted.
• The City has some funding challenges.
o Funding for a Police Captain.
o Moving the Engineering Department from a project based funding to a levy based funding.
o Make a decision on the vacant engineering staff position.
o Funding of long-term capital items.
• Mendota Heights has uniqueness to it. It has large lots, lots of cemeteries, three prominent golf
courses.
• Mendota Heights runs a very lean operation.
page 16
Mayor Krebsbach moved to establish budget workshop dates for August 23rd August 25th, both to begin
at 5:00 p.m.
Councilmember Duggan seconded the motion.
Ayes: 5
Nays: 0
COMMUNITY ANNOUNCEMENTS
Assistant to the City Administrator Tamara Schutta made the following announcements:
• The Night to Unite is scheduled for August 2. Information is on the City’s website.
• Summer Concert next week – Jazz on the Prairie.
• Employment openings in the City are posted on the City’s website, the League of Minnesota
Cities, on Twitter, and on Facebook.
COUNCIL COMMENTS
Councilmember Duggan noted that the Lilydale City Administrator shared how wonderful our City staff
is. In particular, Sharon Hinze, Ryan Ruzek, Rich Burrows, Nancy Bauer and John Mazzitello are
friendly, helpful and welcoming to her.
ADJOURN
Councilmember Duggan moved to adjourn.
Councilmember Petschel seconded the motion.
Ayes: 5
Nays: 0
Mayor Krebsbach adjourned the meeting at 9:45 p.m.
____________________________________
Sandra Krebsbach
ATTEST: Mayor
_______________________________
Lorri Smith, City Clerk
page 17
CITY OF MENDOTA HEIGHTS
DAKOTA COUNTY
STATE OF MINNESOTA
Minutes of the Council Workshop
Wednesday, July 6, 2016
Pursuant to due call and notice thereof, a workshop of the Mendota Heights City Council was held at
City Hall, 1101 Victoria Curve, Mendota Heights, Minnesota.
CALL TO ORDER
Acting Mayor Povolny called the meeting to order at 5:30 p.m. The following members were present:
Councilmembers Duggan, Petschel, and Norton. Mayor Krebsbach joined the meeting at 5:45 p.m.
PRESENTATION BY FOCUS ENGINEERING
REVIEW OF THE CAPITAL INFRASTRUCTURE PLANS
City Administrator Mark McNeill presented Cara Geheren of Focus Engineering. Focus had been hired
to complete a review of the City’s Capital Improvement Plan for streets.
It was noted that improvements to the sanitary sewer system, Storm sewer system, and trails are all
coordinated with the street program. Water system improvements are coordinated with St. Paul
Regional Water and the street program. Ms. Geheren noted the importance of planning for maintenance
of the trail system infrastructure and having a dedicated trail maintenance fund.
The current Capital Improvements Plan includes $9 million for street improvement projects between
2016 and 2020. She stated that the life expectancy of a street depends on the quality of the construction
and the proactive and preventative maintenance that is completed.
It was noted that the PCI rating of the streets in Mendota Heights put 68% in the good to fair condition;
12% of the streets are in the fair to poor category; and 20% are in the poor to failed condition. Ms.
Geheren noted that the Capital Improvement Plan for the next five years was reviewed by their group
and they were in agreement with the plan. Ms. Geheren then reviewed the projects planned for the next
five years as arranged in the plan. Various options for the plan were discussed.
Finance Director Kristen Schabacker noted that funding for street maintenance is included in the street
department budget. The Councilmembers discussed the need to consider all of the long-term needs of
the city during the budget process.
During the budget process, the City will have discussions regarding the necessary level of funding which
can be committed to the Street Program.
DISCUSSION OF NATIONAL JOINT POWERS
City Administrator Mark McNeill provided the Council with information regarding a National Joint
Powers Agreement, and what services it could provide to do architectural and construction services for
things such as remodeling and mold remediation. He said that the NJPA serves as a “state bid” service,
page 18
meaning that member local governmental jurisdictions could negotiate with NJPA for their previously
bid competitive pricing, instead of having to hire architects and individually seek bids or quotes.
McNeill said that the City is already a member, and he asked if the City Council was comfortable in
using the NJPA I for design services and getting prices for remodeling and mold and water remediation
for the lower level issues in City Hall. By consensus, the City Council indicated its approval to utilize
the services of NJPA.
DISCUSSION OF SPECIAL PARKS FUND
McNeill said that roofing on several park shelters need to be replaced. He said that the Special Parks
Fund was established to pay for expenditures that are beyond normal maintenance activities. He asked
if the Council would approve the reroofing projects to be paid for through this source. The Council was
in agreement to use funding from the Special Parks Fund to pay for the reroofing expenses.
ADJOURN
Mayor Krebsbach adjourned the meeting at 6:50 p.m.
____________________________________
Sandra Krebsbach
ATTEST: Mayor
_______________________________
Lorri Smith, City Clerk
page 19
DATE: July 19, 2016
TO: Mayor, City Council, and City Administrator FROM: Lorri Smith, City Clerk SUBJECT: Temporary On-Sale Liquor License-Holy Family Maronite Church
COMMENT:
INTRODUCTION
The Council is asked to approve a temporary liquor license for Holy Family Maronite Church for a
church festival to be held September 11, 2016.
BACKGROUND
Pursuant to State Statutes and our City Code, no person shall sell or give away liquor without first having
received a license. Temporary On-Sale Liquor licenses shall be granted only to clubs and charitable,
religious or nonprofit organizations for the sale of intoxicating liquor. The licenses are subject to final
approval by the Director of Alcohol and Gambling Enforcement.
Holy Family Maronite Church, located at 1960 Lexington Avenue South, is planning to hold their annual
church festival on Sunday, September 11, 2016, on the church property. They have submitted an
application for a Temporary On-Sale Liquor license to allow for the sale of beer during the hours of 11:00
am - 6:00 pm. Security will be present during the event and liability insurance has been obtained.
The festival will include outdoor music, ethnic dance demonstrations, food booths, booths for kid’s
games, a heritage booth, etc. The church is also requesting the use of the city hall parking lot for their
overflow parking.
It should be noted that Temporary On-Sale Liquor licenses have been issued in the past to charitable,
nonprofit and religious organizations within the city with no incidents or negative reports.
RECOMMENDED ACTION
Staff recommends the City Council approve the Temporary On-Sale Liquor license for Holy Family
Maronite Catholic Church, and also the use of the City Hall parking lot for their overflow parking.
ACTION REQUIRED
If the Council concurs, it should, by motion grant a Temporary On-Sale Liquor license for Holy Family
Maronite Catholic Church, as well as the use of the City Hall parking lot for overflow parking.
page 20
Request for City Council Action
MEETING DATE: July 19, 2016 TO: Mayor and City Council, City Administrator FROM: Ryan Ruzek, Assistant City Engineer SUBJECT: Correction of Final Payment for the Sibley Memorial Highway Trail
Improvement Project Project #201514
COMMENT:
Introduction
The Council is asked to approve a corrected amount for the Final Payment for the Sibley
Memorial Highway Trail Improvement Project.
Background
City Council approved the final payment (release of retainage) for the Sibley Memorial Trail
Project at their July 6, 2016 meeting. In the process of issuing the payment it was discovered
that the retainage amount listed in the memo was incorrect, and should now be corrected.
Budget Impact
The resolution for the release listed $3,800.25 as the amount being retained by the city. The
actual amount of retainage is $4,625.08, a difference of $824.83. The final project costs listed
have not changed; only the amount of retainage held by the city.
Recommendation
Staff recommends that the Mendota Heights City Council approve the attached Resolution No.
2016-61 “RESOLUTION AMENDING RESOLUTION 2016-56 ACCEPTING WORK AND
APPROVING FINAL PAYMENT FOR JOB #200514”
Action Required
If Council agrees with the recommendation, the should pass a motion adopting Resolution No.
2016-61 “RESOLUTION AMENDING RESOLUTION 2016-56 ACCEPTING WORK AND
APPROVING FINAL PAYMENT FOR JOB #200514”, by simple majority vote.
page 21
CITY OF MENDOTA HEIGHTS
DAKOTA COUNTY, MINNESOTA
RESOLUTION 2016-61
RESOLUTION AMENDING RESOLUTION 2016-56 ACCEPTING WORK AND
APPROVING FINAL PAYMENT FOR JOB #200514
WHEREAS, pursuant to a written contract signed with the City of Mendota Heights, on
September 4, 2013, with Urban Companies, LLC of Forest Lake, Minnesota, has satisfactorily
completed the improvements for the Sibley Memorial Highway Bituminous Trail Improvement
Project Job #200514, in accordance with such contract.
NOW THEREFORE IT IS HEREBY RESOLVED by the City Council of the City of
Mendota Heights that the work completed under said contract is hereby accepted and approved.
BE IT FURTHER RESOLVED that the Mayor and City Clerk are hereby directed to
issue a proper order for the final payment on such contract in the amount of $4,625.08, taking the
contractor’s receipt in full.
Adopted by the City Council of the City of Mendota Heights this 19th day of July, 2016.
CITY COUNCIL
CITY OF MENDOTA HEIGHTS
_______________________________
Sandra Krebsbach, Mayor
ATTEST
_________________________________
Lorri Smith, City Clerk
page 22
Request for City Council Action
MEETING DATE: July 19, 2016 TO: Mayor and City Council, City Administrator FROM: Ryan Ruzek, Assistant City Engineer SUBJECT: Final Payment and Acceptance of the 2015 Sanitary Sewer Rehab Project
Project #201505
COMMENT:
Introduction
The contract work for the 2015 Sanitary Sewer Lining project has been completed,
inspected, and approved. The project is ready for final payment and this will start the one-year
guarantee period. All required paperwork needed before final payment has been submitted.
Discussion
Total contract costs for this project is $280,087.18, not including engineering and
overhead costs.
Budget Impact
The final payment of this contract is $14,004.36 (2% retainage). There are sufficient
funds in the sewer utility to cover this expense. Mendota Heights will be receiving a grant from
the Met Council in the amount of $27,500 in October.
Recommendation
Staff recommends that the Mendota Heights City Council approve the attached
Resolution No. 2016-60 “RESOLUTION ACCEPTING WORK AND APPROVING FINAL
PAYMENT FOR JOB #201505”
Action Required
If Council agrees with the recommendation, the should pass a motion adopting
Resolution No. 2016-60 “RESOLUTION ACCEPTING WORK AND APPROVING FINAL
PAYMENT FOR JOB #201505”, by simple majority vote.
page 23
CITY OF MENDOTA HEIGHTS
DAKOTA COUNTY, MINNESOTA
RESOLUTION 2016-60
RESOLUTION ACCEPTING WORK AND APPROVING FINAL PAYMENT
FOR JOB #201505
WHEREAS, pursuant to a written contract signed with the City of Mendota Heights, on
May 20, 2015, with Insituform Technologies, Inc. of Chesterfield, MO, has satisfactorily
completed the improvements for the 2015 Sanitary Sewer Rehabilitation Project Job #201505, in
accordance with such contract.
NOW THEREFORE IT IS HEREBY RESOLVED by the City Council of the City of
Mendota Heights that the work completed under said contract is hereby accepted and approved;
and
BE IT FURTHER RESOLVED that the Mayor and City Clerk are hereby directed to
issue a proper order for the final payment on such contract in the amount of $14,004.36, taking
the contractor’s receipt in full.
Adopted by the City Council of the City of Mendota Heights this 19th day of July, 2016.
CITY COUNCIL
CITY OF MENDOTA HEIGHTS
_______________________________
Sandra Krebsbach, Mayor
ATTEST
_________________________________
Lorri Smith, City Clerk
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DATE: July 19, 2016
TO: Mayor and City Council
FROM: Mark McNeill, City Administrator
SUBJECT: Prime Therapeutics Financial Approvals
COMMENT:
INTRODUCTION
The City Council is asked to approve three documents with the Minnesota Department of
Employment and Economic Development (DEED). These provide for state-funded financial
assistance programs for Prime Therapeutics (Prime).
BACKGROUND
On June 25, 2015, the City Council authorized applications be made to the Minnesota
Department of Energy and Economic Development on behalf of Prime, in that company’s efforts
to expand its operations. Prime has been headquartered in Eagan, but has now outgrown that
facility. It is moving to a larger property in Mendota Heights.
The company has more than 3800 employees nationwide, with a minimum of 2024 of those
being located in Minnesota. Prime is owned by 13 not-for-profit Blue Cross and Blue Shield
plans, subsidiaries or affiliates of those plans. It provides for the on-line filling of
pharmaceuticals, benefits, claims resolution, and clinical outcomes and management
The new location for this business is 1440-1444 Northland Drive. The building was originally
constructed for Sanford-Brown College, and was more recently the home of the Cray
Corporation. However, until this interest, the building has been vacant for approximately five
years.
Prime will occupy a total of 97,500 square feet; that would be through an initial five year lease
(with the option of 2-two year extensions). The total investment by Prime and the landlord is
exceeds $9 million, with site and building improvements in excess of $4.5 million which will
positively impact taxable property values.
page 36
If approved, the proposed expansion would create a minimum of an additional 125 jobs over the
next two years, excluding any internal transfers. The created jobs must pay a minimum of
$16.00 per hour, plus a minimum of $4.00 per hour of added benefits.
This action relates to the MIF loan and the grant. One other supporting document—the Security
Agreement—must also be approved by the City Council at this time. An additional document,
the Promissory Note, requires no action by the City, but is presented for information.
BUDGET IMPACT
The applications authorized last year were submitted for a $500,000 forgivable loan, and a
$750,000 grant, both from the Minnesota Investment Fund (MIF).
Funding for the grant and the loan comes from the State, and require no matching funds or direct
financial participation by the City. The City of Mendota Heights will be the conduit through
which these financial instruments will pass, and annual monitoring and reporting, will be
necessary while the job creation periods are open. The City will not be obligated for any
performance or reporting requirements beyond the term of the loan.
Note that the loan will be be “forgivable”; assuming Prime creates the jobs listed over the next
two years (with the possibility of an additional one year extension). If it is successful in its job
creation, the loan will become a grant to the company. If the jobs are not created, repayment will
be needed from Prime to go to the State.
RECOMMENDATION
The move of Prime Therapeutics to Mendota Heights will fill long vacant commercial space and
create jobs. That will add to the financial viability of the Mendota Heights’ industrial area, and
improve the tax base. Therefore, I recommend that the City Council approve the two
agreements.
ACTION REQUIRED
If the Council concurs, it should, by motion approve the following:
1. Minnesota Investment Grant Fund Contract CDAP-15-0015-H-FY16, by and between
the State of Minnesota Department of Employment and Economic Development Business
and Community Development Division, and the City of Mendota Heights;
2. Loan Agreement for the Minnesota Investment Fund, by and between the Minnesota
Department of Employment and Economic Development, and the City of Mendota
Heights;
3. Security Agreement between Prime Therapeutics LLC, and the City of Mendota Heights
Mark McNeill
City Administrator
page 37
Rev. 1/14/2015 1
STATE OF MINNESOTA
GRANT CONTRACT
DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT
BUSINESS AND COMMUNITY DEVELOPMENT DIVISION
Minnesota Investment Fund Grant Contract
Grant Number: CDAP-15-0015-H-FY16
Grant Amount: $750,000
Grantee: City of Mendota Heights
Borrower: Prime Therapeutics LLC
This Grant Contract is between the State of Minnesota, acting through the Department of Employment and
Economic Development, Business and Community Development Division, (“STATE”) and City of Mendota
Heights. Address, 1101 Victoria Curve Mendota Heights, MN 55118, (“GRANTEE”).
Recitals
1. Under Minn. Stat. §§ 116J.035 and 116J.8731, Minnesota Investment Fund, the State is empowered
to enter into this Grant.
2. The State is in need of local units of government to administer projects in accordance with Minn. Stat.
§§ 116J.8731 Minnesota Investment Fund; Minnesota Rules Chapter 4300; and policies and
procedures developed by the State.
3. The Grantee represents that it is duly qualified and agrees to perform all services described in this
Grant Contract to the satisfaction of the State. If administrative costs are eligible under this Grant
pursuant to Minn. Stat. § 16B.98, subdivision 1, the Grantee agrees to minimize administrative costs
as a condition of this Grant.
Grant Contract
1. Term of Grant Contract
1.1 Effective Date: October 15, 2015. Per Minn. Stat. § 16B.98 subd. 5 and Minn. Stat. § 16B.98
subd. 7, no payments will be made to the Grantee until this Grant Contract is fully executed.
1.2 Benefit Date: means September 1, 2016.
1.3 Compliance Date: means September 1, 2018
1.4 Expiration Date: means December 1, 2018
1.5 New Full-Time Employee (FTE): means an employee who begins work at the project on or
after July 28, 2015 and is expected to work at least 2,080 hours annually or salary equivalent.
1.6 Survival of Terms. The following clauses survive the expiration or cancellation of this Grant
Contract: 8. Liability; 9. State Audits; 10. Government Data Practices; 12. Publicity and
Endorsement; 13. Governing Law, Jurisdiction and Venue; 15. Data Disclosure; and Exhibit A 4.
Repayments.
2. Grantee’s Duties
page 38
Rev. 1/14/2015 2
2.1 Duties. The Grantee, who is not a State employee, will perform the duties specified in
Exhibit A which is attached and incorporated into this Grant Contract.
2.2 Application. The Grantee has made application (“APPLICATION”) to the State for the
purpose of providing a loan to Prime Therapeutics LLC. (“BORROWER”) in the manner
described in the application which is incorporated into this Grant Contract by reference.
2.3 Provisions for Contracts and Sub-grants
a) Contract Provisions. The Grantee must include in any contract and sub-grant, including
the loan agreement with the Borrower, in addition to provisions that define a sound and
complete agreement, such provisions that require contractors, sub-grantees and the
Borrower to comply with applicable state and federal laws.
b) Payment of Contractors and Sub-Contractors. The Grantee must ensure that all
contractors and subcontractors performing work covered by this Grant are paid for their
work that is satisfactorily completed.
3. Time
The Grantee must comply with all of the time requirements described in this Grant Contract. In
the performance of this Grant, time is of the essence.
4. Consideration of payment
4.1 Consideration. The State shall pay the Grantee under this Grant Contract as follows:
a) Compensation. The Grantee will be reimbursed according to the approved Budget
contained in Exhibit B, which is attached and incorporated into the Grant Contract.
b) Total Obligation. The total obligation of the State for all compensation and
reimbursement to the Grantee under this Grant Contract will not exceed $ 750,000.
4.2 Payment.
a) Invoices. The State will disburse funds to the Grantee pursuant to this Grant Contract,
based upon payment requests submitted by the Grantee and reviewed and approved by the
State. Payment requests must be accompanied by supporting invoices that relate to the
activities in the approved budget and the documentation detailed in Section 4.2.b. of this
Grant Contract. The State will provide payment request forms.
If the Grantee has received invoices from the Borrower for expenditures made after
effective date of this Grant Contract but before the Grant is closed or until all funds are
disbursed, whichever is earlier, the Grantee shall submit those invoices to the State for
review and approval no later than 25 days after the end date of the state fiscal year of June
30th. To ensure that all funds are drawn down by the expiration date of the Grant, all
Grantee payment requests must be received by the State at least 30 days prior to the
Expiration Date.
b) Documentation. The following information must be submitted and approved by the State
before funds will be released:
1) Minnesota Investment Fund loan agreement, promissory note, evidence of security
filings (security agreement and UCC filing,).
2) Documentation that the following lenders have closed on their financing:
a. Evidence of equity injection in the amount of $5.7 million
b. Invoices for $1.5 million for machinery & equipment and furniture and
fixtures
c. Eligible costs include the costs identified in Exhibit B of this Grant
Contract that are incurred during the Grant Contract period.
5. Conditions of Payment
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Rev. 1/14/2015 3
All services provided by the Grantee under this Grant Contract must be performed to the State’s
satisfaction, as determined at the sole, reasonable discretion of the State’s Authorized
Representative and in accordance with all applicable federal, state and local laws, ordinances,
rules, and regulations. The Grantee will not receive payment for work found by the State to be
reasonably unsatisfactory or performed in violation of federal, state or local law.
The State will not authorize disbursement of funds if there has been any adverse change in the
Borrower’s financial condition, organization, operations, or their ability to repay the project
financing.
6. Authorized Representative
The State’s Authorized Representative is Abdullahi Mohamed, Loan Officer, 1st National Bank
Building, 332 Minnesota Street, Suite E200, St. Paul, MN 55101, 651-259-7456,
Abdullahi.Mohamed@state.mn.us, or his/her successor, and has the responsibility to monitor the
Grantee’s performance and the authority to accept the services provided under this Grant Contract. If
the services are satisfactory, the State’s Authorized Representative will certify acceptance on each
payment request form submitted for payment.
The Grantee’s Authorized Representative is Mark McNeill, City Administrator, 1101 Victoria Curve,
Mendota Heights, MN 55118, 651-255-1153, markm@mendota-heights.com, or his/her successor. If
the Grantee’s Authorized Representative changes at any time during this Grant Contract, the Grantee
must immediately notify the State.
7. Assignment, Amendments, Waiver, and Grant Contract Complete
7.1 Assignment. The Grantee shall neither assign nor transfer any rights or obligations under
this Grant Contract without the prior written consent of the State, approved by the same parties
who executed and approved this Grant Contract, or their successors in office.
7.2 Amendments. Any amendment to this Grant Contract must be in writing and will not be
effective until it has been executed and approved by the same parties who executed and approved
the original Grant Contract, or their successors in office.
7.3 Waiver. If the State fails to enforce any provision of this Grant Contract, that failure does
not waive the provision or the State’s right to enforce it.
7.4 Grant Contract Complete. This Grant Contract contains all negotiations and agreements
between the State and the Grantee. No other understanding regarding this Grant Contract, whether
written or oral, may be used to bind either party. Where provisions of the Application are
inconsistent with the other provisions of this Grant Contract, the other provisions of this Contract
will take precedence over the provisions of the Application.
8. Liability
Subject to the provisions and limitations of Minn. Stat. § 466, the Grantee must indemnify, save,
and hold the State, its agents, and employees harmless from any claims or causes of action,
including attorney’s fees incurred by the State, arising from the performance of this Grant Contract
by the Grantee or the Grantee’s agents or employees. This Clause will not be construed to bar any
legal remedies the Grantee may have for the State’s failure to fulfill its obligations under this Grant
Contract.
9. State Audits
Under Minn. Stat. § 16B.98, subd. 8, the Grantees books, records, documents, and accounting
procedures and practices of the Grantee or other party relevant to this Grant Contract or transaction
page 40
Rev. 1/14/2015 4
are subject to examination by the State and/or the State Auditor or Legislative Auditor, as
appropriate, for a minimum of six (6) years from the end of this Grant Contract, receipt and
approval of all final reports, date of final repayment to the State, or the required period of time to
satisfy all State and program retention requirements, whichever is later.
10. Government Data Practices
The Grantee and State must comply with the Minnesota Government Data Practices Act, Minn.
Stat. § Ch. 13, as it applies to all data provided by the State under this Grant Contract, as it applies
to all data created, collected, received, stored, used, maintained, or disseminated by the Grantee
under this Grant Contract. The civil remedies of Minn. Stat. § 13.08 apply to the release of data
referred to in this Clause by either the Grantee or the State.
If the Grantee receives a request to release the data referred to in this Clause, the Grantee must
immediately notify the State. The State will give the Grantee instructions concerning the release
of the data to the requesting party before the data is released. The Grantee’s response to the request
shall comply with all applicable law.
11. Workers’ Compensation
The Grantee certifies that it is in compliance with Minn. Stat. § 176.181, subd. 2, pertaining to
workers’ compensation insurance coverage. The Grantee’s employees and agents will not be
considered State employees. Any claims that may arise under the Minnesota Workers’
Compensation Act on behalf of these employees and any claims made by any third party as a
consequence of any act or omission on the part of these employees are in no way the State’s
obligation or responsibility.
12. Publicity and Endorsement
12.1 Publicity. Any publicity regarding the subject matter of this Grant Contract must identify
the State as the sponsoring agency. For purposes of this provision, publicity includes notices,
informational pamphlets, press releases, research, reports, signs, and similar public notices
prepared by or for the Grantee individually or jointly with others, or any subcontractors, with
respect to the program, publications, or services provided resulting from this Grant Contract.
12.2 Endorsement. The Grantee and the Borrower must not claim that the State endorses its
products or services.
13. Governing Law, Jurisdiction, and Venue
Minnesota law, without regard to its choice-of-law provisions, governs this Grant Contract. Venue
for all legal proceedings out of this Grant Contract, or its breach, must be in the appropriate state
or federal court with competent jurisdiction in Ramsey County, Minnesota.
14. Termination
14.1 Termination by the State. The State may immediately terminate this Grant Contract with or
without cause, upon 30 days’ written notice to the Grantee. Upon termination, the Grantee will
be entitled to payment, determined on a pro-rata basis for approved costs incurred.
14.2 Termination for Cause. The State may immediately terminate this Grant Contract if the
State finds that there has been a material failure to comply with the provisions of the Grant
Contract, that reasonable progress has not been made or that the purposes for which the funds were
granted have not been or will not be fulfilled. The State may take action to protect the interests of
the State of Minnesota, including the refusal to distribute additional funds and requiring the return
of all or part of the funds already disbursed.
14.3 Termination for Insufficient Funding. The State may immediately terminate this Grant
Contract if:
a) It does not obtain funding from the Minnesota Legislature;
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Rev. 1/14/2015 5
b) Or, if funding cannot be continued at a level sufficient to allow for the payment of the
services covered here. Termination must be by written or electronic notice to the Grantee.
The State is not obligated to pay for any services that are provided after notice and
effective date of termination. However, the Grantee will be entitled to payment
determined on a pro-rata basis, for services satisfactorily performed to the extent that
funds are available. The State will not be assessed any penalty if the Grant Contract is
terminated because of the decision of the Minnesota Legislature, or other funding source,
not to appropriate funds. The State must provide the Grantee notice of lack of funding
within a reasonable time of the State’s receiving that notice.
15. Data Disclosure
Under Minn. Stat. § 270C.65, subd. 3, and other applicable law, the Grantee consents to disclosure
of its social security number, federal employer tax identification number, and/or Minnesota tax
identification number, already provided to the State, to federal and state agencies and state
personnel involved with the payment of state obligations. These identification numbers may be
used in the enforcement of federal and state tax laws which could result in action requiring the
Grantee to file state tax returns and pay delinquent state tax liabilities, if any.
Other Provisions
16. Affirmative Action
The Grantee is encouraged to prepare and implement an affirmative action plan for the
employment of minority persons, women, and the qualified disabled and submit the plan to the
Commissioner of Human Rights as required by Minn. State. § 363A.36.
17. Conflict of Interest
The Grantee shall comply with the Conflict of Interest provisions of Minn. Stat. §§ 471.87 and
471.88.
18. Successors and Assignees
This Grant Contract shall be binding upon any successors or assignees of the parties.
19. Minnesota Business Subsidy Law
This Grant Contract must comply, if appropriate, with the Minnesota Business Subsidy Law,
Minn. Stat §§ 116J.993-116J.995.
20. Debarment and Suspension Certification (if applicable)
The Grantee agrees to follow the President’s Executive Order 12549 and the implementation
regulation “Non-procurement Debarment and Suspension: Notice and Final Rule and Interim
Rule,” found at 53 FR 19189, May 26, 1988, as amended at 60 FR 33041, June 26, 1995, including
Appendix B, “Certification Regarding Debarment, Suspension, Ineligibility and Voluntary
Execution – Lower Tier Covered Transactions;” unless excluded by law or regulation.
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Rev. 1/14/2015 6
1. STATE ENCUMBRANCE VERIFICATION 3. STATE AGENCY
Individual certifies that funds have been encumbered
as required by Minn. Stat. § §16A.15 and
16C.05.
Signed: ____________________________ By: ______________________________
(with delegated authority)
Date: 02/11/2016 Title: _____________________________
Date____________________________
SWIFT Contract PO# B2201-3-241445 15074
2. GRANTEE
The Grantee certifies that the appropriate person(s) have
executed the grant contract on behalf of the Grantee as
required by applicable articles, bylaws, resolutions, or
ordinances.
By: _______________________________
Title: ______________________________
Date: ______________________________
By: _______________________________
Title: ______________________________
Date: ______________________________
Distribution:
Agency
Grantee
State’s Authorized Representative – Photo Copy
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Rev. 1/14/2015 7
EXHIBIT A
GRANTEES DUTIES
The Grantee, who is not a State employee, will,
1. Administer the project in accordance with the requirements of the Minnesota Investment Fund
Program, Minn. Stat. § 116J.8731; Minn. Rules, Chapter 4300; and policies and procedures
developed by the State.
2. Enter into a Loan Agreement with the Borrower for $750,000, (“LOAN”) and assure the following
conditions are included in such Agreement:
2.1 Conditions
a)Loan Term: Compliance Date.
b) Interest Rate: 3% if the Forgivable loan goals are not satisfied on the Compliance Date.
c)Collateral: Security Agreement with UCC filing on machinery and equipment
2.2 Job Creation and Wages
a)The Borrower identified 2,024 full time equivalent (FTE) base jobs that must be maintained
until the Compliance Date.
b)The Borrower will create 125 permanent non-contract FTE jobs, all paying at least $16.00
per hour or more in cash wages, exclusive of benefits, plus $4.00 per hour of Benefits.
Benefits are defined as one or more of the following: health, dental, life and disability
insurance, retirement program and profit sharing paid by the Borrower.
c)If the Borrower fails to meet the job creation and wage goal level commitments on the
Compliance Date, the Grantee may, after holding a public hearing, extend the grant period
for one year from the Compliance Date, after approval by the State. If, after the extension,
the Borrower fails to meet the job creation goal and wage level commitment, the Borrower
will be required to repay the Grantee a proportional share of the Loan funds in the amount
of $6,000 per FTE job not created on an accelerated term plus accrued interest. The Grantee
will then also be required to return to the State a proportional share of the Loan funds plus
accrued interest.
d) Borrower will provide evidence satisfactory to the State to verify FTE jobs goals and wage
requirements have been satisfied.
2.3 Loan Forgiveness
e)If the job creation goals and wage level commitments detailed in Sections 3.2 a) and Section
3.2 b) of Exhibit A are satisfied on the Compliance Date, the Loan will be forgiven. If the
goals are not met by the Compliance Date, the Grantee may request an extension after
holding a public hearing, extend the grant period for up to one year from the Compliance
Date, with approval of extension by the Grantee and State. If the goal are not met after the
extension the State will claw back based on section 3.2 c).
2.4 Payment of Prevailing Wages to Contractors
Minn. Stat. § 116J.871 applies if a business receives $500,000 or more in State loan funds and
the State funds are used for construction, installation (including equipment), remodeling and
repairs.
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Rev. 1/14/2015 8
2.5 Surety Deposits Required for Construction Contracts
Minn. Stat. § 290.9705, pertains to foreign corporations that perform construction work in
Minnesota and applies if state funds are used for construction.
2.6 Job Listing Agreement
Minn. Stat. § 1161L.66, subd. 1, applies when a business or private enterprise receives $200,000
or more per year in funds from the State. When applicable, the business or private enterprise
shall agree to enter into a Job Listing Agreement with the MN Department of Employment and
Economic Development.
3. Require the Grantee’s attorney to review the loan agreement, promissory note, security agreement,
and/or other documents, if any, considered necessary to secure the loan to ensure they are valid,
binding and enforceable.
4. Reporting
a) Minnesota Investment Fund
1) Submit to the State annual progress reports on forms provided by the State until the
project goals have been met or until the Compliance Date, whichever is later. There
reports must be submitted January 25th of each year for the period ending December 31,
for as long as the project remains open.
2) The final report must be submitted no later than 15 days after the Compliance Date.
3) The State, at its discretion, may require the submittal of additional progress reports.
4) Information required in this report includes, but is not limited to the following:
● Permanent jobs created ● Hourly base wage ● Date of hire
● Job titles ● Hourly value of benefits ● Benefits
provided
● Project expenditures ● Status of project ● Status of payments
b) Minnesota Business Assistance Form
1) Submit to the MN Department of Employment and Economic Development, Office of
Economic Analysis, no later than April 1st of each year until the project goals have been
met.
5. Keep financial records, including properly executed contracts, invoices, receipts, vouchers, and other
documents sufficient to evidence in proper detail the nature and propriety of the expenditures made
pursuant to this contract. Accounting methods must be in accordance with generally accepted
accounting principles.
6. Complete the project in accordance with the approved budget within the time frames specified in this
Grant Contract.
7. Promptly notify the State of any proposed material change in the scope of the project, budget or
completion date, which must be approved by the State, prior to implementation.
8. Have on file the necessary documentations to show that all project funds have been used for the
items stated in the application.
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Rev. 1/14/2015 9
Exhibit B
MIF Prime Landlord TOTAL
Leasehold
Improvements $2,400,694 $2,400,694
Tenant Improvements $2,274,233 $2,274,233
FF&E $2,710,100 $2,710,100
IT Equipment $750,000 $2,139,321 $2,889,321
Physical Security $250,000 $250,000
A/E Services
TOTAL $750,000 $7,373,654 $2,400,694 $10,524,348
page 46
LOAN AGREEMENT
MINNESOTA INVESTMENT FUND
THIS AGREEMENT is made and entered into as of the ___ day of ____________, 2016 by and
between the City of Mendota Heights, Minnesota (the "Lender") and Prime Therapeutics LLC, a Delaware
limited liability company (The "Borrower"); the lender and Borrower are hereinafter referred to as the “Parties”.
WITNESSETH:
WHEREAS, the Lender has applied to the Minnesota Department of Employment and Economic
Development for a Minnesota Investment Fund Grant (the "MIF Grant") pursuant to an application (the "Grant
Application") and received approval for said grant; and
WHEREAS, Grant Contract Number CDAP-15-0015-H-FY16 (the "Grant Contract") between the
Minnesota Department of Employment and Economic Development (the “State”) and the Lender has been
executed and requires that the Borrower provide sufficient funds to complete financing and agree to loan terms
with the Lender regarding the MIF Grant; and
WHEREAS, the parties hereto agree to incorporate into this Agreement by reference said Grant
Application and Grant Contract as if fully set forth herein word for word;
NOW THEREFORE, it is agreed by and between the parties hereto as follows:
ARTICLE 1
Definitions
page 47
Section 1.1. Definitions. In this Agreement, unless a different meaning clearly appears from the context:
“Benefits” are defined as one or more of the following: health, dental, life and disability insurance, retirement
program and profit sharing paid by the Borrower.
“Benefit Date” means September 1, 2016.
“Borrower” means Prime Therapeutics LLC. a Delaware limited Liability Company.
"City" means the City of Mendota Heights
“County” means Dakota County.
“Compliance Date” means September 1, 2018
“Consideration of Payment” means Minnesota Investment Fund Award up to $750,000.
"Development Property" means the real property described at Exhibit A attached hereto.
"Equipment" means the equipment purchased by the Borrower with the Loan and described in Exhibit B
attached hereto.
“Expiration Date” means December 1, 2018
“Forgivable Loan” means the funds loaned by the Lender to the Borrower pursuant to this Agreement.
"Grant Contract" means Minnesota Department of Employment and Economic Development Grant Contract #
CDAP-15-0015-H-FY16.
"Initial Disbursement Date" means the date of the first disbursement of any Loan Proceeds by the Lender to
the Borrower.
“Jurisdiction” means a city, county or township.
“Lender” means the City of Mendota Heights.
"Leveraged Funds" means the funds described in Section 2.2. of this Agreement.
"Loan" means the funds loaned by the Lender to the Borrower pursuant to this Agreement.
"Loan Proceeds" means the funds disbursed to the Borrower pursuant to this Agreement and any proceeds
thereof.
"MIF" means the Minnesota Investment Fund, Minn. Stat. § 116J.8731 and Minn. Rules Chapter 4300.
"MIF Grant" means the grant of funds by the State to the Lender pursuant to the Grant Contract.
"Project" means the Borrower’s purchase of machinery and equipment as described in Exhibit B.
"State" means the Minnesota Department of Employment and Economic Development.
"Termination Date" means the date of the final payment made to the Lender.
ARTICLE 2
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Financing for Project
Section 2.1. Project Financing. The Borrower has secured a commitment for the financing necessary to
complete the Project, in a form and under conditions satisfactory to the Bank and the Borrower.
Section 2.2. Borrower’s Equity and Other Financing. The Borrower shall commit not less than $750,000 of
equity (exclusive of the Forgivable Loan) to be used for the completion of the Project.
Section 2.3. MIF Loan/Grant. The MIF Grant will be used by the Lender to make a Forgivable Loan to the
Borrower of not more than $750,000 for the purchase of machinery and equipment. The Borrower’s obligations
under this Agreement are expressly contingent on the Lender’s receipt of funds from the State in an amount
adequate to make the Forgivable Loan.
ARTICLE 3
MIF Loan Terms and Conditions
Section 3.1. Basic Loan Terms. The principal amount of the Loan shall not exceed $750,000. The Forgivable
Loan terms may not be modified without prior written approval from the State. The Forgivable Loan shall be
used exclusively for purchase of machinery and equipment. The term of the Loan is set forth in Section 5.4 of
this Agreement. The Loan shall bear interest at a rate of three percent (3.00%) per annum if the goals are not met
by the end of the Compliance Date.
Section 3.2. Prepayment. Prepayment of the Loan may occur at any time during the Loan without penalty.
Section 3.3. Assignment. If, prior to the Termination Date, the Borrower sells, conveys, transfers, further
mortgages or encumbers, or disposes of the Development Property, or any part thereof or interest therein, or
enters into an agreement to do any of the foregoing, the Borrower shall immediately repay all amounts then
outstanding on the Loan. This shall be in addition to any other remedies at law or equity available to the Lender.
Section 3.4. Termination. This Agreement shall automatically terminate with notice to Borrower if: (1) no Loan
Proceeds have been disbursed to the Borrower prior to September 30, 2016; or (2)(a) the Borrower has not
received any disbursement of Loan Proceeds from the Lender; and (2)(b) the Borrower fails to pay its undisputed
debts as they become due, makes an assignment for the benefit of its creditors, admits in writing its inability to
pay its debts as they become due, files a petition under any chapter of the Federal Bankruptcy Code or any
similar law, state or federal, now or hereafter existing, becomes "insolvent" as that term is generally defined
under the Federal Bankruptcy Code, files an answer admitting insolvency or inability to pay its debts as they
become due in any involuntary bankruptcy case commenced against it, or fails to obtain a dismissal of such case
within sixty (60) days after its commencement or convert the case from one chapter of the Federal Bankruptcy
Code to another chapter, or is the subject of an order for relief in such bankruptcy case, or is adjudged a bankrupt
or insolvent, or has a custodian, trustee, or receiver appointed for it, or has any court take jurisdiction of its
property, or any part thereof, in any proceeding for the purpose of reorganization, arrangement, dissolution, or
liquidation, and such custodian, trustee, or receiver is not discharged, or such jurisdiction is not relinquished,
vacated, or stayed within sixty (60) days of the appointment.
Section 3.5. Promissory Note. The Borrower shall execute a promissory note in substantially the form set forth
by the State.
Section 3.6. Surety Deposits Required for Construction Contracts. If the Borrower is hiring, contracting, or
having a contract with a nonresidential person or foreign corporation to perform construction work, the Borrower
must comply with Minnesota Statutes 290.9705, as amended, by deducting and witholding eight percent of
cumulative calendar year payments to the contractor which exceeds $50,000.
This condition may be waived if (1) the contractor gives the commissioner a cash surety or a bond, secured by
page 49
an insurance company licensed by Minnesota, conditioned that the contractor will comply with all applicable
provisions of this chapter and chapter 297A, or (2) the contractor has done construction work in Minnesota at
any time during the three calendar years prior to entering the contract and has fully complied with all provisions
of this chapter and chapter 297A for the three prior years.
Section 3.7. Annual Financial Statements. For the term of the loan, upon request of the Lender, the Borrower
shall submit the most recent annual financial statement prepared in accordance with generally accepted
accounting principles. The annual financial statements shall include a profit and loss statement, balance sheet,
statement of cash flow, notes and an opinion from the accountants of such statements acceptable to the Lender.
Section 3.8. Hazard Insurance. The Borrower shall maintain insurance in adequate amounts covering loss or
damage to the collateral. The Lender must be listed as loss payee.
Section 3.9. Prevailing Wage. The Recipient must fully and completely comply with all of the applicable
prevailing wage requirements that are contained in Minn. Stat. § 116J.871 if the Recipient is awarded $500,000
or more in Benefits. The project also may be subject to prevailing wage laws pursuant to Minn. Stat. 177.41 to
177.44 and corresponding Minnesota Rules 5200.1000 to 5200.1120. These requirements include, but are not
limited to, providing a certification to the Commissioner of the Department of Labor and Industry in the form
attached hereto as Exhibit C. The Recipient shall supply such certification before this Agreement is executed by
the State. The Recipient shall maintain or provide access to all documentation necessary to establish that
required prevailing wage was paid, and shall allow the Commissioner of the Department of Labor and Industry
and the State reasonable access to such data.
ARTICLE 4
Default and Collateral
Section 4.1. Default. The Borrower shall be in default under this Agreement upon the happening of any one or
more of the following events:
(a) the Borrower fails to pay when due any amount payable on the Loan and such nonpayment is not
remedied within ten (10) business days after written notice thereof to the Borrower by the Lender;
(b) the Borrower is in breach in any material respect, of any obligation or agreement under this
Agreement (other than nonpayment of any amount payable on the Loan) and remains in breach in any material
respect for thirty (30) business days after written notice thereof to the Borrower by the Lender; provided,
however, that if such breach shall reasonably be incapable of being cured within such thirty (30) business days
after notice, and if the Borrower commences and diligently prosecutes the appropriate steps to cure such breach,
no default shall exist so long as the Borrower is proceeding to cure such breach;
(c) if any material covenant, warranty, or representation of the Borrower shall prove to be untrue in
any material respect, provided such covenant, warranty or representation of the Borrower remains untrue in any
material respect for thirty (30) business days after written notice thereof to the Borrower by the Lender;
provided, however, that if such untruth shall reasonably be incapable of being corrected within such thirty (30)
business days after notice, and if the Borrower commences and diligently prosecutes the appropriate steps to
correct such untruth, no default shall exist so long as the Borrower is so proceeding to correct such untruth;
(d) the Borrower. on or after the Initial Disbursement Date, fails to pay its undisputed debts as they
become due, makes an assignment for the benefit of its creditors, admits in writing its inability to pay its debts as
they become due, files a petition under any chapter of the Federal Bankruptcy Code or any similar law, state or
federal, now or hereafter existing, becomes "insolvent" as that term is generally defined under the Federal
Bankruptcy Code, files an answer admitting insolvency or inability to pay its debts as they become due in any
involuntary bankruptcy case commenced against it, or fails to obtain a dismissal of such case within sixty (60)
days after its commencement or convert the case from one chapter of the Federal Bankruptcy Code to another
chapter, or be the subject of an order for relief in such bankruptcy case, or be adjudged a bankrupt or insolvent,
page 50
or has a custodian, trustee, or receiver appointed for it, or has any court take jurisdiction of its property, or any
part thereof, in any proceeding for the purpose of reorganization, arrangement, dissolution, or liquidation, and
such custodian, trustee, or receiver is not discharged, or such jurisdiction is not relinquished, vacated, or stayed
within sixty (60) days of the appointment;
(e) a final judgment is entered against the Borrower that the Lender reasonably deems will have a
material, adverse impact on the Borrower's ability to comply with the Borrower’s obligations under this
Agreement;
(f) the Borrower sells, conveys, transfers, encumbers, or otherwise disposes of all or any part of
the Development Property/Equipment without the prior written approval of the Lender, unless the subject
property or equipment is replaced with substantially similar property or equipment with the same or greater
value;
(g) the Borrower merges or consolidates with any other entity without the prior written approval of
the Lender; or
(h) there is a loss, theft, substantial damage, or destruction of all or any part of the Development
Property/Equipment that is not remedied to the Lender's satisfaction within sixty (60) business days after written
notice thereof by the Lender to the Borrower.
Section 4.2. Remedies Upon Default.
(a) In the event of a default, the Lender shall have the right as its option and without demand or
notice, to declare all or any part of the Loan immediately due and payable, and in addition to the rights and
remedies granted hereby, the Lender shall have all of the rights and remedies available under the Uniform
Commercial Code and any other applicable law.
(b) The Borrower agrees in the event of a default to make the collateral available to the Lender. The
Borrower agrees to pay the costs and expenses incurred by the Lender in enforcing its rights under this
Agreement, including but not limited to the Lender's attorneys fees. If any notice of sale, disposition or other
intended action by the Lender is required by law to be given to the Borrower, such notice shall be deemed
reasonably and properly given if mailed to the Borrower at the Development Property or at such other address of
the Borrower as may be shown herein, at least fifteen (15) days before such sale, disposition or other intended
action.
Section 4.3. Collateral. The Borrower shall grant to the Lender a security interest in Equipment in an amount of
equal to the amount of the Loan disbursed hereunder and pursuant to an executed security agreement.
Section 4.4. Default on Business Subsidy Act Requirements. (a) In the event of an Event of Default arising
from a breach by the Borrower of any provision of Section 7.1 of this Agreement, if the implicit price deflator
for government consumption expenditures and gross investment for state and local governments prepared by the
Bureau of Economic Analysis of the United States Department of Commerce for the 12-month period ending
March 31st of the previous year, exceeds three percent (3.00)% on the date of the earliest such Event of Default,
the Borrower shall, in addition to any other payment required hereunder, pay to the Lender the difference
between the present value of the interest actually paid and accrued on the Loan as of the date of the payment
required by this Section 4.4, and the amount of interest that would have been paid and accrued on the Loan if the
interest rate of the Loan at all times had been equal to the implicit price deflator on the date of the earliest Event
of Default.
(a) This information must be provided to the Lender no later than March 1 of each year for the
previous year. If the Borrower does not submit the report, the Lender shall mail the Borrower a warning within
one week of the required filing date. If, after 14 days of the postmarked date of the warning, the Borrower fails
page 51
to provide a report, the Borrower must pay to the Lender a penalty of $100 for each subsequent day until the
report is filed. The maximum penalty shall not exceed $1,000.
(b) Nothing in this Section 4.4 shall be construed to limit the Lender’s rights or remedies under any
other provision of this Agreement, and the provisions of Section 4.4(a) are in addition to any other such right or
remedy the Lender may have available.
ARTICLE 5
Loan Disbursement Provisions
Section 5.1. Payment Requisition Documentation and Format. Loan disbursements shall be for purchase of
machinery and equipment and shall not exceed $750,000. The Loan shall be disbursed to the Borrower only
after the Lender has received from the Borrower an invoice or invoices for machinery and equipment costs.
Upon receipt of such invoice or invoices, the Lender will disburse an amount equal to fifty percent (50.00%) of
amount of the invoice or invoices, up to a total disbursement amount of $750,000.
Section 5.2. Provision for Evidentiary Materials. No disbursements of Loan funds shall be made until all
evidentiary materials required by the State have been submitted and approved by the State. These evidentiary
materials shall include, but not necessarily be limited to, the materials described in Article 6 of this Agreement
and the invoices described in Section 5.1.
Section 5.3. Project Time Frame. Borrower shall use commercially reasonable efforts to achieve the timeframe
outlined in the associated Grant Application.
Section 5.4. Loan Terms. The term of the Forgivable Loan matures on the Compliance date. If all the goals are
not satisfied on the Compliance Date, the Loan shall bear interest at the rate stated in Section 4.4 (a) of this Loan
Agreement and interest shall commence to accrue as of the Initial Disbursement Date.
Section 5.5. Loan Repayments Schedule. If Borrower is in violation of Section 4.4 of this Loan Agreement
repayment shall be due within 30 days of written notice to the Borrower.
Section 5.6. Leveraged Funds. The Leveraged Funds described in the Grant Application must be used for the
same purposes and under the same terms, rates, and conditions as specified therein unless prior written consent is
received from the State.
Section 5.7. Adverse Changes. The State will not authorize disbursement of funds if there has been any adverse
change in the Borrower’s financial condition, organization, operations or their ability to repay the project
financing
ARTICLE 6
Provision of Evidentiary Material Requirement
Section 6.1. Provision of Evidentiary Materials. In addition to those materials described in Section 5.2 of this
Agreement, the Borrower shall provide the Lender with all evidentiary materials according to the format and
timetable cited in the Grant Contract. The Lender will forward these materials to the State and assist in
expediting reviews leading to a release of the Loan.
Section 6.2. Documentation of Use of Funds. The Borrower must provide the Lender with necessary
documentation that the Loan and the Leveraged Funds have been used for the items and purposes stated in the
Grant Application prior to submitting the final progress report and requesting grant closeout from the State.
Section 6.3. Job Creation Documentation. The Borrower shall annually complete and provide to the Lender
notification of employment of hiring each new permanent employee for inclusion in the Lender’s annual
Progress Report to the Grantor. The notification requirement must be provided to the Lender no later than
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January 15 of each year and shall terminate on the Compliance Date if the Borrower is not then in breach of
Section 7, on forms provided by the Lender. This information must include:
(a) Permanent jobs created.
(b) Job title per job.
(c) Date employee(s) hired.
(d) Hourly wage.
(e) Hourly value of benefits paid.
(f) Benefits.
ARTICLE 7
Business Subsidy Agreement
Section 7.1. Business Subsidy Agreement. The provisions of this Section constitute the “business subsidy
agreement” for purposes of the Minnesota Business Subsidy Act (Minnesota Statutes Sections 116J.993-995 and
its successor statute.)
(a) The Borrower acknowledges and agrees that the provisions of Minnesota’s Business Subsidy
Act apply to this Agreement, as Borrower is receiving under the terms of this Agreement government
assistance.
(1) The subsidy provided to the Borrower includes the $750,000 Loan made hereunder which
will be used for purchase of machinery and equipment.
(2) The public purposes and goals of the subsidy are to increase net jobs in the City.
(3) The goals for the subsidy are to create jobs that pay a livable wage, per Section 7.1(b) of
this Agreement.
(4) If the goals are not satisfied, the Borrower shall make payment to the Lender as required in
Section 4.4.
(5) The subsidy is needed because return on investment makes the Project economically
infeasible without the Loan
(6) The Borrower must continue operations in the jurisdiction for at least five years following
the Benefit Date.
(7) The Borrower does not have a parent corporation.
(b) Starting July 28, 2015 through no later than the Compliance Date, the Borrower shall create at least
one hundred and twenty five (125) new permanent, non-contract full-time equivalent jobs (the "New Jobs") at
the Development Property above the baseline employment in the State of two thousand twenty four (2,024)
permanent, full time non-contract equivalent jobs, which must also be maintained from the date of this
Agreement through the Compliance Date. The New Jobs must be paid a base wage of at least $16.00 per hour,
exclusive of benefits and $20.00 per hour including benefits. If the Borrower fails to meet the job creation goal
and wage level commitment by the Compliance Date, the Borrower will be required to return a proportional
share of the Loan ($6,000 per job not created).
Section 7.2 Reporting. The Borrower shall provide to the Lender information regarding job and wage goals
and results for two years after the benefit date or until the goals are met, whichever is later. This reporting
requirement will expire if the goals are met by the Compliance Date. If the goals are not met, the Borrower must
continue to provide information on the loan until the loan is repaid. The information must be filed on forms
developed by the State. The report must be filed no later than March 1 of each year for the previous year. If the
Borrower does not submit the report, the Lender shall mail the Borrower a warning within one week of the
required filing date. If, after 14 days of the postmarked date of the warning, the Borrower fails to provide a
report, the Borrower must pay to the Lender a penalty of $100 for each subsequent day until the report is filed.
The maximum penalty shall not exceed $1,000.
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ARTICLE 8
First Source Employment Agreement
First Source Employment Referral Agreement. (Minnesota Statutes Section 116L.66 and any successor statutes.)
The Borrower shall list any vacant or new positions with the local Workforce Development Center.
ARTICLE 9
Provision of Monitoring Information Related To Project Progress
Section 9.1. Provision of Progress Information. The Borrower shall provide to the Lender information for
incorporation into progress reports, as required by the State and as needed by the Lender, to monitor project
implementation for compliance with Grantor and local guidelines. This information must be provided no later
than January 10 of each year until the Grantor administratively closes the grant file.
ARTICLE 10
Nondiscrimination
Section 10.1. Nondiscrimination. The provisions of Minnesota Statutes, Section 181.59 and any successor
statutes, which relate to civil rights and discrimination, shall be considered a part of this Agreement as though
wholly set forth herein and the Borrower shall comply with each such provision throughout the term of this
Agreement.
ARTICLE 11
Borrower's Acknowledgments Representation, and Warranties
Section 11.1. Acknowledgments. (a) The Borrower acknowledges that the Lender, in order to obtain funds for
part of the Borrower's activities in connection with the Project, has applied for the MIF Grant to the State under
the Minnesota Investment Fund Program, Business and Community Development Division, and that the Lender
has entered into the Grant Contract with the State, setting forth the terms, conditions, and requirements of the
MIF Grant. The Borrower further acknowledges that it has made certain representations and statements in the
Grant Application concerning its activities relating to the Project, and that the Borrower is designated and
identified under the Grant Contract.
(b) A copy of the Grant Contract shall be on file in the offices of the Lender. In the event any
provision of this Agreement relating to the Borrower's obligations hereunder is inconsistent with the provisions
of the Grant Contract relating to the Borrower's activities there under, the provisions of the Grant Contract shall
prevail.
(c) The Borrower acknowledges that nothing contained in the Grant Contract or this Agreement, nor
any act of the State or the Lender, shall be deemed or construed to create between the State and the Borrower (or,
except as Borrower and Lender between the Lender and the Borrower) any relationship, including but not limited
to that of third-party beneficiary, principal and agent, limited or general partnership, or joint venture.
Section 11.2. Representations and Warranties. The Borrower warrants and represents, in connection with the
MIF Grant and for the benefit of the State and the Lender, that:
(a) Representations, statements, and other matters provided by the Borrower relating to those
activities of the Project to be completed by the Borrower, which were contained in the Grant Application, were
true and complete in all material respects as of the date of submission to the Lender and that such
representations, statements, and other matters are true as of the date of this Agreement and that there are no
adverse material changes in the financial condition of the Borrower's business.
(b) To the best of the Borrower's knowledge, no member, officer, or employee of the Lender, or its
officers, employees, designees, or agents, no consultant, member of the governing body of the Lender, and no
page 54
other public official of the Lender, who exercises or has exercised any functions or responsibilities with respect
to the Project during his or her tenure shall have any interest, direct or indirect, in any contract or subcontract, or
the proceeds thereof, for work to be performed in connection with the Project or in any activity, or benefit there
from, which is part of the Project.
(c) The Borrower acknowledges that the State, in selecting the Lender as recipient of the Grant,
relied in material part upon the assured completion of the Project to be carried out by the Borrower, and the
Borrower warrants that said Project will be carried out as promised.
(d) The Borrower warrants that to the best of its knowledge, it has obtained all federal, state, and
local governmental approvals, reviews, and permits required by law to be obtained in connection with the Project
and has undertaken and completed all actions necessary for it to lawfully execute this Agreement as binding
upon it.
(e) The Borrower warrants that it shall keep and maintain books, records, and other documents
relating directly to the Leveraged Funds, and that any duly authorized representative of the State shall, at all
reasonable times, have access to and the right to inspect, copy, audit, and examine all such books, records, and
other documents of the Borrower until such time that the Lender and the State have both determined that all
issues, requirements, and close-out procedures relating to or arising out of the MIF Grant have been settled and
completed.
(f) The Borrower warrants that no transfer of any or all of the Loan Proceeds by the Lender to the
Borrower shall be or be deemed an assignment of Loan Proceeds, and the Borrower shall neither succeed to any
rights, benefits, or advantages of the Lender under the Grant Contract, nor attain any right, privileges, authorities,
or interest in or under the Grant Contract.
(g) The Borrower warrants that it has fully complied with all applicable local, state, and federal
laws pertaining to its business and will continue such compliance throughout the terms of this Agreement. If at
any time notice of noncompliance is received by the Borrower, the Borrower agrees to take any necessary action
to comply with the local, state, or federal law in question.
ARTICLE 12
Other Special Conditions
Section 12.1. Antitrust. The Borrower hereby assigns to the State of Minnesota any and all claims for
overcharges as to goods and services provided in connection with this Agreement resulting from antitrust
violations that arise under the antitrust laws of the United States or the antitrust laws of the State.
Section 12.2. Workers Compensation Insurance. The Borrower has obtained workers compensation insurance
as required by Minnesota Statutes, Section 176.181, subd. 2. The Borrower's workers compensation insurance
information is as follows:
(a) Company Name: Hayes Companies – Hartford Accident & Inc. Co.
(b) Policy Number: 41WBRS5091 & 41WBRS5090
(c) Local Agent: Ross Nerison
Section 12.3. Business with the State of Minnesota/State Tax Laws. The Borrower is required by Minnesota
Law to provide its Minnesota tax identification number if it does business with the State of Minnesota. This
information may be used in the enforcement of Federal and State tax laws. Supplying these numbers could result
in an action to require the Borrower to file State tax returns and pay delinquent State tax liabilities. This
Agreement will not be approved unless these numbers are provided. These numbers will be available to Federal
page 55
and State tax authorities and State personnel involved in the payment of State obligations.
Minnesota Tax ID: 6822674
Federal Employer ID: 26-0076803
Section 12.4. Grant Closeout. The Borrower shall, prior to grant closeout from the State, provide the Lender
with all documentation necessary to demonstrate that the Loan has been used for the items and purposes set forth
in the Grant Application.
Section 12.5. Review of Documents. The Borrower shall not be entitled to any disbursement of Loan Proceeds
until the Lender's legal counsel and the State have reviewed and approved this Agreement and the exhibits
attached hereto.
Section 12.6. Effect on Other Agreements. Nothing in this Agreement shall be construed to modify any term of
any other agreement to which the Lender and the Borrower are parties.
Section 12.7. Release and Indemnification Covenants. Except for any breach of the representations and
warranties of the Lender or the negligence or other wrongful act or omission of the following named parties, the
Borrower agrees to protect and defend the Lender and the governing body members, officers, agents, servants,
and employees thereof, now and forever, and further agrees to hold the aforesaid harmless from any claim,
demand, suit, action, or other proceeding whatsoever by any person or entity whatsoever arising or purportedly
arising from the acquisition, construction, installation, ownership, maintenance, and operation of the Project and
the Borrower's activities on the Development Property.
Section 12.8. Modifications. This Agreement may be modified solely through written amendments hereto
executed by the Borrower and the lender and approved by the State.
Section 12.9. Notices and Demands. Any notice, demand, or other communication under this Agreement by
either party to the other shall be sufficiently given or delivered only if it is dispatched by registered or certified
mail, postage prepaid, return receipt requested, or delivered personally:
(a) as to the Lender: City of Mendota Heights
Attn: Mark McNeill, City Administrator
1101 Victoria Curve
Mendota Heights, MN 55118
(b) as to the Borrower: Prime Therapeutics LLC
Attn: Brian Holmes
1305 Corporate Center Drive
Eagan, MN 55121
Brian.Holmes@PrimeTherapeutics.com
Jones Lang LaSalle
Attn: Gregg Fuerstenberg
45 South 7th St., Suite 3051
Minneapolis, MN 55402
Gregg.Fuerstenberg@am.jll.com
or at such other address with respect to any party as that party may, from time to time, designate in writing and
forward to the others as provided in this Section 12.9.
Section 12.10. Conflict of Interests; Representatives Not Individually Liable.
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No employee, officer or agent of the Lender shall participate in the administration of a contract supported by this
loan if a conflict of interest, real or apparent, would be involved. No employee, officer or agent of the Lender
may obtain a financial interest in any agreement with respect to this loan. No employee, officer, or agent of the
Lender shall be personally liable to the Borrower or any successor in interest in the event of any default or
breach by the Lender or for any amount that may become due to the Borrower or on any obligation or term of
this Agreement.
Section 12.11. Binding Effect. The covenants and agreements in this Agreement shall bind and benefit the
heirs, executors, administrators, successors, and assigns of the parties to this Agreement.
Section 12.12. Provisions Not Merged With Deed. None of the provisions of this Agreement are intended to or
shall be merged by reason of any deed transferring any interest in the Development Property and any such deed
shall not be deemed to affect or impair the provisions and covenants of this Agreement.
Section 12.13. Titles of Articles and Sections. Any titles of the several parts, Articles, and Sections of this
Agreement are inserted only for convenience of reference and shall be disregarded in construing or interpreting
any of its provisions.
Section 12.14. Counterparts. This Agreement may be executed in any number of counterparts, each of which
shall constitute one and the same instrument.
Section 12.15. Choice of Law and Venue. This Agreement shall be governed by and construed in accordance
with the laws of the state of Minnesota without regard to its conflict of laws provisions. Any disputes,
controversies, or claims arising out of this Agreement shall be heard in the state or federal courts of Minnesota,
and all parties to this Agreement waive any objection to the jurisdiction of these courts, whether based on
convenience or otherwise.
Section 12.16. Waiver. The failure or delay of any party to take any action or assert any right or remedy, or the
partial exercise by any party of any right or remedy shall not be deemed to be a waiver of such action, right, or
remedy if the circumstances creating such action, right, or remedy continue or repeat.
Section 12.17. Entire Agreement. This Agreement, with the exhibits hereto, constitutes the entire agreement
between the parties pertaining to its subject matter and it supersedes all prior contemporaneous agreements,
representations, and understandings of the parties pertaining to the subject matter of this Agreement.
Section 12.18. Separability. Wherever possible, each provision of this Agreement and each related document
shall be interpreted so that it is valid under applicable law. If any provision of this Agreement or any related
document is to any extent found invalid by a court or other governmental entity of competent jurisdiction, that
provision shall be ineffective only to the extent of such invalidity, without invalidating the remainder of such
provision or the remaining provisions of this Agreement or any other related document.
Section 12.19. Immunity. Nothing in this Agreement shall be construed as a waiver by the Lender of any
immunities, defenses, or other limitations on liability to which the Lender is entitled by law, including but not
limited to the maximum monetary limits on liability established by Minnesota Statutes, Chapter 466.
Section 12.20. Publicity and Endorsement
(a) Publicity. Any publicity regarding the subject matter of this loan contract must identify the State as
the sponsoring agency. For purposes of this provision, publicity includes notices, informational pamphlets, press
releases, research, reports, signs, and similar public notices prepared by or for the Grantee individually or jointly
with others, or any subcontractors, with respect to the program, publications, or services provided resulting from
this grant contract.
page 57
(b) Endorsement. The Grantee and the Borrower must not claim that the State endorses it’s products or
services.
[Remainder of page intentionally blank]
page 58
IN WITNESS WHEREOF, the Lender has caused this Agreement to be duly executed in its name and
behalf and the Borrower has caused this Agreement to be duly executed in its name and behalf as of the date first
above written.
CITY OF MENDOTA HEIGHTS
By _________________________
Its _________________________
By _________________________
Its _________________________
_________________________(Insert name of Borrower)
By _________________________
Its _________________________
By _________________________
Its _________________________
page 59
EXHIBIT A
Legal Description of Development Property
1440 Northland Drive, Mendota Heights, MN.
Parcel ID Number 27-36450-01-031.
Lots 3 and 4, Block 1 and Outlot A, Inland Industrial Park, according to the recorded plat in
Book V of Plats, page 47, Dakota County, Minnesota.
page 60
EXHIBIT B
Equipment List
See Attached Summary
page 61
page 62
EXHIBIT C
Grant Contract
page 63
SECURITY AGREEMENT
This security agreement (the "Security Agreement") is made and given as of this ______ day of
_____, 2016, by Prime Therapeutics LLC, a Delaware limited liability company, with its principal place of
business at 1440 Northland Drive, Mendota heights, MN 55120 (the "Borrower") in favor of the City of
Mendota Heights, with its offices at 1101 Victoria Curve Mendota Heights, MN 55118 and its endorsees,
successors and assigns (the "Lender").
R E C I T A L S
A. Lender and Borrower have entered into a certain Loan Agreement, dated _________ as of the
date hereof (the "Loan Agreement"), pursuant to which Lender will loan to Borrower no more
than $750,000 (the "Loan") to assist with the purchase of machinery and equipment on the
Development Property. The Borrower has agreed to grant to the Lender a security interest in
certain pieces of equipment (the “Equipment) described on the Exhibit B attached hereto, such
Equipment to be located at the Development Property site described on the Exhibit A attached
hereto (the "Development Property"). Borrower's payment obligations under the Loan
Agreement will be evidenced by a promissory note (the "Note") dated as of the date hereof.
B. As security for the repayment of the Loan, Lender has required that Borrower execute and
deliver to Lender this Security Agreement granting a security interest to Lender in the
Equipment.
C. The Note, this Security Agreement, and any other instruments or documents given as security for
the Loan are herein referred to as the "Loan Documents".
NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which are
hereby acknowledged by Borrower, it is agreed as follows:
1. Grant of Security Interest. As security for the payment and performance of the Note
and all other liabilities, obligations, and indebtedness of Borrower to Lender due or to become
due, direct or indirect, absolute or contingent, joint or several, howsoever created, now or
hereafter at any time created, arising, or evidenced under or pursuant to the Note or this
Agreement or any other document or instrument evidencing or securing the Note, Borrower
does hereby transfer, assign, and grant to Lender a security interest in all of Borrower's right,
title, and interest in and to the following (hereinafter collectively referred to as the "Collateral"),
whether now owned or hereafter acquired or arising:
(a) the Equipment; and
(b) any and all proceeds of the foregoing.
2. Borrower's Representations, Warranties and Covenants. Borrower represents,
warrants, covenants, and agrees:
(a) Organization. Borrower is a limited liability company validly existing and in good
standing under the laws of the state of Minnesota, and Borrower has full power and
authority to execute, deliver, and perform the Loan Documents, and to own its property
and conduct its business as presently conducted and as proposed to be conducted.
(b) Authorization. The execution, delivery, and performance of this Security
Agreement have been duly authorized by all necessary action and will not:
page 64
(i) require any consent or approval of any entity that has not been obtained;
or
(ii) violate any provision of any indenture, contract, agreement, or instrument
to which Borrower is a party or by which it is bound.
(c) Performance by Borrower. Unless Borrower obtains Lender's prior written
consent, Borrower shall not:
(i) terminate its interest in any of the Collateral; or
(ii) sell, transfer, or assign, or offer to sell, transfer or assign all or any part
of the Collateral or permit all or any part of the Collateral to be sold,
transferred, or assigned; or
(iii) remove or consent to the removal of any of the Equipment from the
Property.
(d) Title to Collateral. Borrower shall keep good marketable title to all of the
Collateral, and none of the Collateral is subject to any lien or security interest except
for the security interest created by this Security Agreement and other security interests
consented to in writing by Lender. Borrower has not granted, and will not grant or
permit to exist, any lien or security interests in all or a portion of the Collateral other
than the liens in favor of Lender and other liens consented to in writing by Lender.
Borrower shall defend the Collateral against all claims and demands of all and any
other persons at any time claiming any interest therein adverse to Lender.
(e) Actions and Proceedings. There are no actions at law, suits in equity, or other
proceedings pending before or expected to be filed with any governmental agency,
commission, bureau, tribunal, or other arbitration proceedings against or affecting
Borrower that if adversely determined would adversely affect Borrower's interest in the
Collateral or would adversely affect the rights of Borrower to pledge and assign all or a
part of the Collateral or the rights and security afforded Lender hereunder.
(f) Insurance. Borrower agrees it will keep the Equipment insured at all times
against loss by fire and other hazards concerning which, in the judgment of Lender,
insurance protection is reasonably necessary and in amounts sufficient to protect
against loss or damage of the Equipment. Such policy or policies will contain a loss
payable clause in favor of Lender or its successors or assigns, in form satisfactory to
Lender, provided, however, that Borrower may, at its reasonable discretion, self-insure
the Equipment.
(g) No Fixture. If any of the Collateral is or becomes a fixture, Borrower agrees to
furnish Lender, at Lender's request, with a statement or statements signed by all
persons who have or claim an interest in the real estate concerned, which statements
shall provide that the signer consents to the security interest created hereby and
disclaims any interest in the Collateral as fixtures.
(h) Understandings Regarding Collateral. Borrower acknowledges that the
Collateral is of the design, capaLender, and manufacture specified for and by Borrower,
and that Borrower is satisfied that the same is suitable for its intended purposes.
page 65
Borrower further acknowledges and agrees that Lender has not made, and does not
make, any representation, warranty, or covenant with respect to merchantability,
fitness for any purpose, durability, patent, copyright or Economic mark infringement,
suitability, or capability of any item of Collateral in any respect or in connection with any
other purpose or use of Borrower, or any other representation, warranty, or covenant
of any kind or character expressed or implied with respect thereto. Borrower
accordingly agrees not to assert any claim whatsoever against Lender based thereon.
Borrower further agrees, regardless of cause, not to assert any claim whatsoever against
Lender for loss of anticipatory profits or consequential damages.
(i) Use of Collateral. The Collateral will be used for its intended business purpose
and will at all times be located at the Property.
(j) Condition of Collateral. Borrower will keep the Collateral in good condition and
repair, reasonable wear and tear excepted, will permit Lender to enter upon the
Property at reasonable times for the purpose of examining the Collateral.
(k) Costs of Collection. In the event of any action or proceeding to collect or realize
upon the Collateral or to enforce any of Lender's rights hereunder, Borrower shall pay:
(i) all of Lender's attorneys fees and other legal expenses, with interest
thereon, incurred by Lender;
(ii) all taxes, levies, insurance expenses, and costs of repairs to, or
maintenance of, the Collateral; and
(iii) all costs of Lender incurred in taking possession of, disposing of or
preserving the Collateral after any Event of Default (defined below).
3. Event of Default. Upon the event of a default under the Loan Agreement, Lender may
exercise any remedy available to it under the terms of the Loan Agreement.
4. Further Assurances. Borrower shall execute and deliver to Lender, promptly and at
Borrower's expense, Uniform Commercial Code ("Code") financing statements and evidence of
tax filings and payments, including without limitation a UCC-1 Financing Statement in
substantially the form set forth by the Minnesota Secretary of State’s Office. Borrower agrees
that: (i) Lender is authorized, at its option, to file a carbon, photographic, or other reproduction
of this Agreement as a financing statement and that such statement shall be sufficient as a
financing statement under the Code; and (ii) Lender is authorized to file financing statements or
amendments thereto without the signature of Borrower, provided that if a signature is required
by law, then Borrower appoints Lender as Borrower's attorney-in-fact to execute any such
financing statements.
5. Cumulative Remedies. All of Lender's rights and remedies herein are cumulative and in
addition to any rights or remedies available at law or in equity including the Code, and may be
exercised concurrently or separately. Borrower shall pay all costs, expenses, losses, damages
and legal costs (including attorneys fees) incurred by Lender as a result of enforcing any terms
or conditions of this Agreement.
6. No Liability Imposed on Lender. Lender shall not be obligated to perform or discharge,
nor does it hereby undertake to perform or discharge any obligation, duty, or liability, nor shall
page 66
this Agreement operate to place responsibility for the control, care, or management of the
Equipment upon Lender.
7. Indemnification. Borrower agrees to defend, protect, indemnify and hold Lender
harmless of and from any and all liability, loss, and damage that Lender does, may, or might
incur under or by reason of this Agreement, and of and from any and all claims and demands
whatsoever which may be asserted against Lender by reason of any alleged obligations or
undertakings to perform or discharge any of the terms, covenants, or agreements contained
herein. Should Lender incur any such liability or be required to defend against any such claims
or demands, or should a judgment be entered against Lender, the amount thereof, including
costs, expenses, and reasonable attorney’s fees, shall bear interest thereon at the rate then in
effect on the Note, shall be secured hereby, shall be added to the Loan, and Borrower shall
reimburse Lender for the same immediately upon demand, and upon the failure of Borrower so
to do, Lender may declare the Loan immediately due and payable.
8. Expenses of Lender. All expenses in protecting, storing, warehousing, insuring, handling,
and shipping of the Collateral, all costs of keeping the Collateral free of liens, encumbrances and
security interests (other than the security interest created by this Agreement) and the removing
of the same and all excise, property, sales, and use taxes imposed by state, federal, or local
authority on any of the Collateral or with respect to the sale thereof, shall be borne and paid for
by Borrower and if Borrower fails to promptly pay any amounts thereof when due, Lender may,
at its option, but shall not be required to, pay the same, and upon such payment the same shall
constitute obligations and shall bear interest at the rate specified in the Note and shall be
secured by the security interests granted hereunder.
9. Continuing Rights. The rights and powers of Lender hereunder shall continue and
remain in full force effect until the Loan is paid in full.
10. Books and Records. Borrower will permit Lender and its representatives to examine
Borrower's books and records (including data processing records and systems) with respect to
the Collateral and make copies thereof at any time and from time to time, and Borrower will
furnish such information reports to Lender and its representatives regarding the Collateral as
Lender and its representatives may from time to time request. Lender shall have the authority,
at any time, to require Borrower to place upon Borrower's books and records relating to the
Collateral and other rights to payment covered by the security interest created in this
Agreement a notation stating that any such Collateral and other rights of payment are subject to
a security interest in favor of Lender.
11. Effect on Other Agreements. Nothing in this Agreement shall be construed to modify
any term of any other agreement to which Lender and Borrower are parties.
12. Release and Indemnification Covenants. Except for any breach of the representations
and warranties of Lender or the negligence or other wrongful act or omission of the following
named parties, Borrower agrees to protect and defend Lender and the governing body
members, officers, agents, servants and employees thereof, now and forever, and further
agrees to hold the aforesaid harmless from any claim, demand, suit, action or other proceeding
whatsoever by any person or entity whatsoever arising or purportedly arising from the
acquisition, construction, installation, ownership, maintenance, and operation of the
Equipment.
page 67
13. Modifications. This Agreement may be modified solely through written amendments
hereto executed by Lender and Borrower and approved by the State.
14. Notices and Demands. Any notice, demand, or other communication under this
Agreement by either party to the other shall be sufficiently given or delivered only if it is
dispatched by registered or certified mail, postage prepaid, return receipt requested, or
delivered personally:
(a) as to the Lender: City of Mendota Heights
ATTN: City Administrator
1101 Victoria Curve
Mendota Heights, MN 55118
(b) as to the Borrower: Prime Therapeutics LLC
Attn: Brian Holmes
1305 Corporate Center Drive
Eagan, MN 55121
Brian.Holmes@PrimeTherapeutics.com
Jones Lang LaSalle
Attn: Gregg Fuerstenberg
45 South 7th St., Suite 3051
Minneapolis, MN 55402
Gregg.Fuerstenberg@am.jll.com
or at such other address with respect to any party as that party may, from time to time,
designate in writing and forward to the others as provided in this Section 14.
15. Conflict of Interests; Representatives Not Individually Liable. No officer or employee of
Lender may acquire any financial interest, direct or indirect, in this Agreement, the Equipment,
or in any contract related to the Equipment. No officer, agent, or employee of Lender shall be
personally liable to Borrower, or any successor in interest, in the event of any default or breach
by Lender or for any amount which may become due to Borrower or on any obligation or term
of this Agreement.
16. Binding Effect. The covenants and agreements in this Agreement shall bind and benefit
the heirs, executors, administrators, successors, and assigns of the parties to this Agreement.
17. Merger. None of the provisions of this Agreement are intended to or shall be merged
by reason of any deed transferring any interest in the Property and any such deed shall not be
deemed to affect or impair the provisions and covenants of this Agreement.
18. 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.
19. Counterparts. This Agreement may be executed in any number of counterparts, each of
whom shall constitute one and the same instrument.
20. Choice of Law and Venue. This Agreement shall be governed by and construed in
accordance with the laws of the state of Minnesota without regard to its conflict of laws
page 68
provisions. Any disputes, controversies, or claims arising out of this Agreement shall be heard in
the state or federal courts of Minnesota, and all parties to this Agreement waive any objection
to the jurisdiction of these courts, whether based on convenience or otherwise.
21. Waiver. The failure of any party to take any action or assert any right or remedy, or the
partial exercise by any party of any right or remedy, shall not be deemed to be a waiver of such
action, right, or remedy if the circumstances creating such action, right, or remedy continue or
repeat.
22. Entire Agreement. This Agreement, with the other Loan Documents constitutes the
entire agreement between the parties pertaining to its subject matter and it supersedes all prior
contemporaneous agreements, representations, and understandings of the parties pertaining to
the subject matter of this Agreement.
23. Separability. Wherever possible, each provision of this Agreement and each related
document shall be interpreted so that it is valid under applicable law. If any provision of this
Agreement or any related document is to any extent found invalid by a court or other
governmental entity of competent jurisdiction, that provision shall be ineffective only to the
extent of such invalidity, without invalidating the remainder of such provision or the remaining
provisions of this Agreement or any other related document.
24. Immunity. Nothing in this Agreement shall be construed as a waiver by the Lender of
any immunities, defenses, or other limitations on liability to which the Lender is entitled by law,
including but not limited to the maximum monetary limits on liability established by Minnesota
Statutes, Chapter 466.
25. Other Matters. All representations and warranties contained in this Agreement or in
any other agreement between Borrower and Lender shall survive the execution, delivery and
performance of this Agreement and the creation and payment of any indebtedness to Lender.
Borrower waives notice of the acceptance of this Agreement by Lender.
IN WITNESS WHEREOF, Lender has caused this Agreement to be duly executed in its name and
behalf and Borrower has caused this Agreement to be duly executed in its name and behalf as of the
date first above written.
CITY OF MENDOTA HEIGHTS, MN
By _________________________
Its _________________________
By _________________________
Its _________________________
page 69
Prime Therapeutics LLC
By _________________________
Its _________________________
By _________________________
Its _________________________
EXHIBIT A
DEVELOPMENT PROPERTY
LEGAL DESCRIPTION
1440 Northland Drive, Mendota Heights, MN.
Parcel ID Number 27-36450-01-031.
Lots 3 and 4, Block 1 and Outlot A, Inland Industrial Park, according to the recorded plat
in Book V of Plats, page 47, Dakota County, Minnesota.
page 70
EXHIBIT B TO SECURITY AGREEMENT
See Attached
page 71
page 72
PROMISSORY NOTE
$750,000 ___, 2016
Prime Therapeutics LLC , a Delaware limited liability company (the “Borrower”),
for value received, hereby promises to pay to the City of Mendota Heights (the “Lender”)
or its assigns at its designated principal office or such other place as the Lender may
designate in writing, the principal sum of Seven hundred fifty thousand dollars and
No/100 ($750,000.00) (the “Loan”) or so much thereof as may be advanced under this
Promissory Note (this “Note”), with interest as hereinafter provided, in any coin or
currency which at the time or times of payment is legal tender for the payment of private
debts in the United States of America.
1. a. Except as provided in Section 1.c. of this Note, the Loan
shall bear interest at three percent (3.00%). Interest, if any in accordance
with Section 1.c. of this Note, shall commence to accrue as to the amount
of the Loan disbursed as of the date disbursed in accordance with the Loan
Agreement between the Borrower and the Lender of even date herewith
(the “Loan Agreement”) evidencing the terms of the loan evidenced by
this Note.
b. Subject to the provisions of Section 7.1 of the Loan Agreement, up
to $750,000 of the principal balance of this Note (the “Loan”) shall be
forgiven and deemed paid on the Expiration Date (as defined in the Loan
Agreement).
c. If the Goals are not met by the Compliance Date (as those terms
are defined in the Loan Agreement), the Lender agrees to repay all or a
part of the principal amount of this Note on a pro rata basis (as further
described in this Section 1. c. the “Recaptured Principal”), plus interest set
at the greater of 3.0% or the implicit price deflator defined in Minnesota
Statutes, Section 275.70, Subdivision 2 (“Recapture Interest”), accruing
from and after the Initial Disbursement Date, compounded annually.
Recaptured Principal plus Recapture Interest thereon shall be repaid not
later than 30 days after the Lender notifies the Developer of the amount to
be repaid pursuant to Section 7.1 of the Loan Agreement. If the Goals are
only met in part by the Compliance Date, the Borrower will repay a pro
rata portion of the principal amount of this Note (plus Recapture Interest).
d. Except as provided in Section 1(c), no payments shall be due on
the Forgivable Loan; provided, however, accrued interest from the date of
disbursement at the greater of 3.0% or the implicit price deflator defined
in Minnesota Statutes, Section 275.70, Subdivision 2 will be added to any
Recaptured Principal due pursuant to Section 1(c).
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2. The Borrower shall have the right to prepay the principal of this Note, in
whole or in part, without prepayment penalty.
3. This Note is given pursuant to the Loan Agreement and is secured by a
Security Agreement of even date herewith (the “Security Agreement”) covering
equipment located in County of Dakota, Minnesota. In the event any such security is
found to be invalid for whatever reason, such invalidity shall constitute an event of
default hereunder.
All of the agreements, conditions, covenants, provisions, and stipulations
contained in the Loan Agreement, or any instrument securing this Note are hereby made
a part of this Note to the same extent and with the same force and effect as if they were
fully set forth herein. It is agreed that time is of the essence of this Note. If a default
occurs under the Loan Agreement, or any instrument securing this Note, and continues
beyond any applicable notice and cure periods, the Lender of this Note may at its right
and option, without notice, declare immediately due and payable the principal balance of
this Note, together with any costs of collection including attorney fees incurred by the
Lender of this Note in collecting or enforcing payment hereof, whether suit be brought or
not, and all other sums due hereunder, or under any instrument securing this Note. The
Borrower agrees that the Lender of this Note may, without notice to the Borrower of this
Note and without affecting the liability of the Borrower of this Note, accept additional or
substitute security for this Note, or release any security or any party liable for this Note or
extend or renew this Note.
5. The remedies of the Lender of this Note as provided herein, and in the
Loan Agreement, or any other instrument securing this Note, shall be cumulative and
concurrent and may be pursued singly, successively, or together, and, at the sole
discretion of the Lender of this Note, may be exercised as often as occasion therefore
shall occur; and the failure to exercise any such right or remedy shall in no event be
construed as a waiver or release thereof.
The Lender of this Note shall not be deemed, by any act of omission or
commission, to have waived any of its rights or remedies hereunder unless such waiver is
in writing and signed by the Lender of this Note and then only to the extent specifically
set forth in the writing. A waiver with reference to one event shall not be construed as
continuing or as a bar to or waiver of any right or remedy as to a subsequent event. This
Note may not be amended, modified, or changed except only by an instrument in writing
signed by the party against whom enforcement of any such amendment, modifications, or
change is sought.
6. This Note shall be governed by and construed in accordance with the laws
of the state of Minnesota without regard to its conflict of laws provisions. Any disputes,
controversies, or claims arising out of this Note shall be heard in the state or federal
courts of Minnesota, and all parties to this Note waive any objection to the jurisdiction of
these courts, whether based on convenience or otherwise.
page 74
7. The headings used in this Note are solely for convenience of reference, are
no part of this Note, and are not to be considered in construing or interpreting this Note.
8. This Note, with the other Loan Documents, constitutes the entire Note
between the parties pertaining to its subject matter and it supersedes all prior
contemporaneous Notes, representations, and understandings of the parties pertaining to
the subject matter of this Note.
9. Separability. Wherever possible, each provision of this Note and each
related document shall be interpreted so that it is valid under applicable law. If any
provision of this Agreement or any related document is to any extent found invalid by a
court or other governmental entity of competent jurisdiction, that provision shall be
ineffective only to the extent of such invalidity, without invalidating the remainder of
such provision or the remaining provisions of this Note or any other related document.
10. IT IS HEREBY CERTIFIED AND RECITED that all conditions, acts, and
things required to exist, happen, and be performed precedent to or in the issuance of this
Note do exist, have happened, and have been performed in regular and due form as
required by law.
[Signature page follows.]
page 75
IN WITNESS WHEREOF, the Borrower has caused this Note to be duly
executed as of the ___day of ______, 2016.
Prime Therapeutics LLC, a Deleware limited liability company
By __________________________________
Its
page 76
Request for City Council Action
MEETING DATE: July 19, 2016 TO: Mayor and City Council, City Administrator FROM: Nolan Wall, AICP – Planner SUBJECT: Ordinance 498 Concerning B-1 District Conditional Uses
COMMENT:
Introduction
The applicant is requesting amendments to Title 12-1F-1-B of the City Code concerning conditional uses
in the B-1 Limited Business District. This item was before the City Council at the July 6 meeting and was
tabled. Staff was directed to include additional conditions for the office/warehouse use of the proposed
amendment.
Background
The applicant owns the property at 2500 Lexington Avenue South and formerly occupied the existing
13,940-square foot office/warehouse building, which is currently vacant. The building was originally built
as a gymnastics studio and later converted to an office/warehouse use, neither of which are permitted to
operate in the B-1 District under the current City Code. The applicant no longer operates the business and
is marketing the building for sale or lease. As a result, the existing permitted/conditional uses have proved
problematic in attracting new users based on how the building is constructed and code amendment process.
Discussion
The proposed amendment includes two additional conditional uses for consideration in the B-1 Limited
Business District:
1. Commercial recreation, when conducted within a completely enclosed building.
2. Offices of general nature where the operations include warehousing from the site.
Based on the discussion at the last meeting, there did not seem to be any issues with the proposed
“commercial recreation” use. In order to address concerns regarding potential issues with warehouse uses
on other properties in the B-1 District, staff is proposing the following revisions to Ordinance 498:
Offices of general nature where the operations include warehousing from the site, subject to the following
conditions:
1. The primary use of the principal building shall be for office-related uses.
2. Warehouse space for the proposed use shall be limited to no more than nine thousand (9,000) square
feet within the principal structure.
3. Loading areas shall not be serviced by loading docks, unless screened in compliance with section
12-1D-13-2-E-2 of this chapter from surrounding uses.
4. Truck traffic shall not impede vehicle circulation or have a negative impact on other uses in a multi-
tenant building or on surrounding residential properties.
5. Operations shall not include retail sales.
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According to Title 12-1B-2 of the City Code, warehousing is defined as follows:
WAREHOUSING: The storage of materials or equipment within an enclosed building.
According to the applicant, the building contains approximately 8,300 square feet of warehouse space in
addition to the office space. Laser Technologies used the warehouse space as a showroom and staging area
and there was no direct retail sale from the site. The proposed amendment would allow warehousing as a
conditional use in the B-1 Limited Business District in conjunction with a permitted general office use, but
contains conditions to mitigate any potential negative impacts to surrounding properties.
As discussed by the City Council at the last meeting, rezoning the property to I-Industrial may also be an
option for consideration. The subject parcel is adjacent to other industrial uses, but also office and
residential uses. If the property were to be rezoned to I-Industrial, staff proposes “warehousing and
distribution adjacent to residential uses” be considered a conditional use, with conditions that seek to
mitigate any potential impacts, including noise, traffic, loading/unloading, hours of operation, and lighting.
In addition, the I-District already allows “business and professional offices” as a permitted use and
“commercial recreation” as a conditional use.
Budget Impact
N/A
Recommendation
In consideration of this case, the City Council may consider the following actions:
1. Adopt Ordinance 498, as presented or as amended by the City Council.
OR
2. Deny Ordinance 498.
OR
3. Request that the applicant withdraw the application in this case and direct staff to prepare
ordinances to rezone the subject parcel to I-Industrial and amend the City Code to establish
additional conditions for a warehouse use adjacent to a residential use in the I-Industrial District.
If the applicant/property owner is agreeable, staff recommends Option 3. It allows for both potential
proposed uses and does not subject other B-1 District properties to unintended consequences from expanded
warehouse uses. However, rezoning and the recommended corresponding code amendment constitute new
requests that must be properly noticed and reviewed by the Planning Commission. Since the Council
implied this could be an option worth further consideration at the last meeting, staff went ahead and
submitted the required public hearing notice so that the case could be heard at the July 26 Planning
Commission meeting. If Option #3 is not approved, then staff would send another notification that the
public hearing has been cancelled.
Approval of Option #1 or Option #2 requires the Council to pass a motion adopting/denying ORDINANCE
498 CONCERNING B-1 DISTRICT CONDITIONAL USES.
Action Required
Action must be taken on the request before the Council in Planning Case 2016-23, which is Ordinance 498,
unless the applicant agrees to withdraw the request and provides a statement to that effect in writing prior
to the action deadline.
Secondly, if acceptable, Option #3 would require separate action from the Council.
Both matters require a simple majority vote.
page 78
CITY OF MENDOTA HEIGHTS 1
DAKOTA COUNTY, MINNESOTA 2
3
ORDINANCE NO. 498 4
5
AN ORDINANCE AMENDING TITLE 12, CHAPTER 1, ARTICLE F OF THE CITY 6
CODE OF THE CITY OF MENDOTA HEIGHTS, MINNESOTA, DAKOTA COUNTY, 7
CONCERNING B-1 DISTRICT CONDITIONAL USES 8
9
10
The City Council of the City of Mendota Heights, Minnesota, does hereby ordain: 11
12
Section 1. 13
14
Title 12-1F-1-B is hereby amended as follows: 15
16
B. Conditional Uses: Within any B-1 limited business district, no structure or land shall be used 17
for the following uses except by conditional use permit: 18
19
Commercial recreation, when conducted within a completely enclosed building. 20
21
Offices of general nature where the operations include warehousing from the site, subject to the 22
following conditions: 23
1. The primary use of the principal building shall be for office-related uses. 24
2. Warehouse space for the proposed use shall be limited to no more than nine thousand 25
(9,000) square feet within the principal structure. 26
3. Loading areas shall not be serviced by loading docks, unless screened in compliance with 27
section 12-1D-13-2-E-2 of this chapter from surrounding uses. 28
4. Truck traffic shall not impede vehicle circulation or have a negative impact on other uses 29
in a multi-tenant building or on surrounding residential properties. 30
5. Operations shall not include retail sales. 31
32
Section 2. 33
34
This ordinance shall be in effect from and after the date of its passage and publication. 35
36
Adopted and ordained into an ordinance this nineteenth day of July, 2016. 37
38
CITY COUNCIL 39
CITY OF MENDOTA HEIGHTS 40
41
42
43
Sandra Krebsbach, Mayor 44
ATTEST 45
46
47
___________________________ 48
Lorri Smith, City Clerk 49
page 79
Request for City Council Action
MEETING DATE: July 19, 2016 TO: Mayor and City Council, City Administrator FROM: Mike Aschenbrener, Chief of Police Emergency Manager SUBJECT: Personnel Action Item Community Service Officer/Student Intern
COMMENT:
Introduction
The Council is asked to authorize the steps necessary to hire a Community Service Officer/Student Intern
(CSO).
Background
At the April 19, 2016 City Council workshop, McGrath Consulting presented the results of the Police
Department study. At that time staff was directed to prepare an implementation plan for the McGrath
study. The implementation plan was presented at the May 24, 2016 workshop and certain items were
selected for immediate action. One of the recommendations addressed was the hiring of a Community
Service Officer (CSO).
Attached is position description for the position of Community Service Officer/Student Intern. This is a
non-sworn position. The position will be advertised at pay grade 1 on the city pay plan. The position will
be a .5 FTE position benefit eligible, pro-rated, with a maximum limit of service to the community being
set at 36 months. The position will accept only applicants who are in an approved degree program
working towards certification by the Minnesota Police Officers and Standards Training Board to be hired
as a licensed police officer in Minnesota. The hours will be adjusted each semester.
See attached position description.
Budget Impact
The CSO position would be a Grade 1 position working no more than 40 hours per pay period. This
position will have annual costs which are expected to be less than $28,000. This position is not
anticipated to be hired prior to October 1, and so unbudgeted expenses (other than uniform costs of about
$500) will be 25% of that.
As this position was not budgeted for 2016, the recommendation of the Finance Director and City
Administrator is to pay for 2016 expenses with fund reserves. These were increased as a result of
favorable revenues, and reduced expenditures in 2015. Ongoing 2017 costs will need to be provided in
the levy.
page 80
Recommendation
Staff recommends that the Mendota Heights City Council approve the attached job description and
authorize advertising the position.
Action Required
If the Council desires to implement the recommendation, pass a motion to approve the position
description and authorize staff to take the steps necessary to hire a Community Service Officer/Student
Intern.
page 81
POSITION TITLE: COMMUNITY SERVICE OFFICER/ STUDENT DATE: July 19, 2016
INTERN
DEPARTMENT: POLICE REVISED:
ACCOUNTABLE TO: SERGEANT DIVISION: PATROL
STATUS: Non-exempt
PRIMARY OBJECTIVE OF POSITION
Performs non-sworn police related tasks which include animal control, code enforcement, crime prevention;
parking enforcement; bicycle patrol and bicycle safety and miscellaneous public service calls. Position involves
high public contact. This is an entry level and highly responsible position in the Police Department which
performs complex duties. This position will potentially involve shift work, including nights, weekends and
holidays. While performing the duties of this job, the employee may work in all weather conditions, or may
work inside in the office or in the holding facility in direct contact with persons who have been arrested or
detained. Typical duties may vary from routine, non-sworn police work to highly complex tasks. Community
Service Officer/Student Intern (CSO) assignments not to exceed three years.
MAJOR AREAS OF ACCOUNTABILITY
• Enforce applicable ordinances and statutes pertaining to animals; performs various animal
control duties.
• Performs motorists assists including vehicle lockout.
• Completes reports as required.
• Conducts speed and traffic surveys.
• Assists with public relations events and presentations.
• Assists patrol officers with various duties as directed.
• Assists in servicing and maintaining police vehicles and equipment.
• Assist in recovery and inventory of lost, abandoned and confiscated property.
• Assists with reception-type duties; answers telephones, customer service requests at front
counter.
• Investigates and enforces city ordinance violations related to property maintenance and outside
storage.
• Performs other duties and assignments as directed.
NECESSARY KNOWLEDGE, SKILLS AND ABILITIES :
• Working knowledge of English , spelling , grammar , punctuation and vocabulary so
as to write legible and comprehensible reports.
• Demonstrated ability to commun icate orally and in writing .
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• Ability to learn applicable laws, ordinances, and department rules
and regulations.
• Skill in operation of listed tools and equipment.
• Ability to establish and maintain effective working relationships with supervisors , officers , and other
department employee.
QUALIFICATIONS
• 18 years of age or older.
• Interest in law enforcement ; presently enrolled in a P.O.S.T. accredited law
enforcement program.
• Valid Minnesota's Driver's License.
• Graduation from high school or GED equivalent.
• Successful completion of background investigation , psychological evaluation and physical.
• No criminal convictions for any felony , any gross misdemeanor, or misdemeanor assault.
• Ability to maintain a positive image to the public.
• Ability to exercise sound judgment in evaluating situations and inm aking decisions .
• Ability to act in a courteous , professional manner with colleagues and the public.
Miscellaneous Information
Must satisfactorily pass a criminal background, medical, physical, and psychological
examination.
Safety Policy
It is the responsibility of every employee of the City of Mendota Heights to know and observe
the safety policies and procedures of the city. Each employee is expected to perform their
tasks in a safe and efficient manner while using appropriate safety equipment, clothing and
devices.
Physical Activities/Requirements
Overall Physical Strength Demands
Sedentary Exerting up to 10 lbs. occasionally or negligible weights frequently; sitting
most of the time.
Light
Exerting up to 20 lbs. occasionally, 10 lbs. frequently, or negligible amounts
constantly; Sitting most of the time. Frequently requires walking or
standing.
Medium Exerting 20 – 50 lbs. occasionally, 10 – 25 lbs. frequently, or up to 10 lbs.
constantly.
Heavy Exerting 50 – 100 lbs. occasionally, 25-50 lbs. frequently, or up to 10-20
lbs. constantly.
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Very
Heavy
Exerting over 100 lbs. occasionally, 50 – 100 lbs. frequently, or up to 20-50
lbs. constantly.
Physical Demands
C = Continuously
2/3 or more of the
time.
F = Frequently
From 1/3 to 2/3 of
the time.
O = Occasionally
Up to 1/3 of the
time.
R = Rarely
Less than 1
hour per week.
N = Never
Never Occurs
Physical
Demands Frequency Code Example
Standing F Directing traffic flow, assisting at community events.
Sitting F Squad car, workstation
Walking F During regular police activities and training, foot
patrol
Lifting O Transporting essential gear and emergency equipment,
assisting others by lifting victims onto gurney cart
Carrying F Equipment, victims
Running R/N Foot pursuits
Pushing/Pulling F Vehicles, debris, individuals in custody, doors
Reaching F Retrieving items within workstation or vehicle such as
radio, other essential equipment
Handling F Suspect search and frisk, driving, or checking for vital
signs when rendering medical assistance
Fine Dexterity F Computer keyboard
Kneeling N To assist at accident scene, gathering evidence
Crouching N To assist at accident scene, gathering evidence
Crawling O Assist at accident scene, gathering evidence
Bending O Assist at accident scene, gathering evidence
Twisting F Getting in and out of squad car
Climbing R Climbing stairs, scaling walls and fences
Balancing R Fences, ladders, stairs,
Vision C Reading reports, monitoring patrol area, identify cars
and suspects. Computer screen.
Hearing C Monitoring radio communication, answering inquiries
from the public, taking statements
Talking C Conducting interviews and investigations,
communicating with the public.
Foot Controls F Driving Squad car
Other (specify) F The individual may encounter stress and pressures
from dealing with emotional issues and conflicts.
Machines, Tools, Equipment and Work Aids
Police vehicles, radio, first aid equipment, camera, digital recorder, finger printing kit, measuring
devices, smartphones, uniform, computer, bicycles, and all other police related equipment used
for non-sworn police service.
Environmental Factors
page 84
D = Daily W = Several
times per week
M = Several times
per month
S = Seasonally N = Never
Health and Safety Environmental Factors Primary Work Location
Mechanical Hazards
W
Dirt and Dust
W
Office Environment
X
Chemical Hazards
W
Extreme Temperatures
S
Vehicle
X
Electrical Hazards
W
Noise and Vibration
D
Outdoors
X
Fire Hazards
W
Fumes and Oder
W
Other
Explosives
M
Wetness/Humidity
S
Communicable Diseases
D
Darkness or poor lighting
D
Physical Danger or abuse
D
Other (specify):
Work Schedule Possibilities
Typical 40 hour work week Work on Weekends
Rotating Shift Work Overtime
9.5 Hour Shift Work On call/call out
Work on Holidays
Employees performing the duties of this job will frequently work in outside weather conditions.
Office environment work is performed in a well-lit, well ventilated and temperature controlled
office. Noise level in the work environment is usually moderate.
Protective Equipment Required
Hazardous material and biohazard personal protective equipment, bullet proof vest, respirators,
eye & ear protection, chemical agent, baton, EMD, handcuffs, rain gear, and various
immunizations.
Non-physical Demands include
Continuously
2/3 or more of
the time
Frequently
From 1/3 to 2/3
of the time
Occasionally
up to 1/3 of the
time
Rarely
Less than 1 hour
per week
Never
Time Pressures - Occasionally
Emergency Situations - Frequently
Frequent Change of Tasks - Occasionally
Irregular Work Schedule - Frequently
Performing Multiple Tasks Simultaneously - Frequently
Working Closely with Others as Part of a Team - Frequently
Tedious Work - Frequently
Noisy/Distracting Environment - Frequently
Other:
The above description is intended to describe the general functions, skills and knowledge of the person
assigned to this job. These examples are intended only as illustrative of various types of work
performed, and are not all inclusive. The employee may be required to perform other related duties as
page 85
assigned. The job description is subject to change as the needs of the employer and requirements of the
job change.
page 86
MEETING DATE: July 19, 2016 TO: Mayor and City Council FROM: Mark McNeill, City Administrator SUBJECT: Parks Buildings Roof Replacement
COMMENT:
Introduction
The City Council is asked to given direction for the type of shingles for the replacement of
roofing on eleven park structures.
Background
The current cedar shake roofs on the park buildings in four parks were new in 1990, and are
beginning to deteriorate. There are four parks; Kensington with three structures, Friendly Hills
with two structures, Mendakota with three structures and Wentworth with three structures.
Discussion
Efforts were made to obtain three quotes for replacing the current cedar shakes, but it was
discovered that there are not a lot of contractors who do this type of work; only one proposal was
submitted. In addition to removing and replacing the cedar shakes, the contractor was also
asked to install underlayment to meet current building codes, install new vents, and reinstall the
lightning rods.
This topic was discussed with the Parks and Recreation Commission when it met on July 12th.
The Parks and Recreation Commission had just reviewed the draft Capital Improvements
Program, and was concerned about the dwindling balance of the Special Parks Fund.
The members suggested getting prices for asphalt shingles. I was later informed that asphalt
shingles had been quoted a year ago; the price for asphalt shingles vs. cedar shakes was about
40% less. Those asphalt shingles had a 20 year full warranty, with a prorated warranty for 50
years. The cedar shake warranty is being investigated.
Council will note that City Hall was constructed in 1989, and originally had cedar shake roofing.
When the roof needed to be replaced in 2006, the decision was made to go with asphalt. Those
shingles therefore lasted 27 years.
The decision for Council is whether to stay with the architectural look of cedar. It is usually seen
to have a warmer, more pleasing look. The policy question for the City Council is whether the
extra cost is worth it?
page 87
Budget Impact
$60,000 is budgeted in the Special Park Funds CIP to cover the cost of replacing the roofs. We
anticipate that bids for asphalt shingles would be about half of that amount.
Action Required
Council should give direction as to whether it wants to stay with the appearance of cedar shake
roofing, or to direct staff to get quotes for replacing all eleven park shelter roofs with asphalt
shingles.
cc: Terry Blum, Public Works Superintendent
John Mazzitello, Public Works Director
page 88