The URL can be used to link to this page

1987-11-10,�• � CITY OF MENDOTA HEIGHTS DAKOTA CQUNTYr MINNESOTA SPECIAL CITY COUNCIL MEETING TUESDAY, NaVEMBER 10, 1987, S:Ofl P.M. COUNCIL CHAMBER AGENDA 1. Cal1 ta Order . —,�; O t�` 2. Roll Ca11. . — G�U' � �- 3 . Ag�nda Adoption. —" ,/� `" �.5/- �ui,�,,,�,.� Gr - �`'y� ' - 1 4. City Ha].1 Bid Award (architects will be present; plea�e bring materials fram 11j3 meeting'�. 5. Award of Ca.ty Fiall financing program (see attached memo from City Treasurer Larry Shaughnessy). 6. Agreement with Eugene Lange ta serve as City Ha11 project Manager. 7. Discussion of potential of�'er to School District 197 regarding developmen� af iienry Sibley athleta,c complex (see attached materials). 8 . Adj ourn . •- t, : � � /�-�,. .,��'� �. ,.� m a CITX OF MENDOTA HEIGHTS MEMO November 6, 1987 Tti: Mayor� Gity Council, City Administratar FROM: Lawrence E. Shauqhnessy Financial Advisar/Treasurer SUBJECT: City Hall Funding Firm Einancing �rapasals have been received fram Juran & Moody and Daughert�r, Dawka.ns to provide funds for the City Hall. A comparision o� the two offers, adjusted for any expenses, is shown belaw, Juran Dougherty, & Moodv Dawkins Interest, 16 year semi-annual payment $1,168,156.25 $1,272,915.00 Escrow Fees . 16,000.00 -0- Average annual Payment 168,384.75 172,557.QQ Total Cast 2,594,7.56.25 2,760,915.60 Difference in tc►tal payments is $66,759.35* Difference in interest is $1Q4,759.00* Interest rates 7.914% 8.56$ *The d3.fferential between total cost and interest is due to higher issue expense reflected in the bid of Juran & Moady. The primary difference between the twa bids is the fact that the Douc�herty Dawkins bid reflects a private placement while the Juran bid is for a Certificate af Participation. As a private placement the City cauld refund the issue at any time, whereas under the Certificate issue, refunding could nat be done until the six�h year at a 1� premium or in the ninth year without penalty. Due to the different methods af financing proposed, minor variances cou].d be cansidered between �he two propasals, such as a small .2� of a year difference in average maturity and the annual payment of escrow fees. After camputing these variances, the Juran proposal still reflects a better o�fer by some $72,000, The follawing is a tabulation of the projected total cost of the building: City Hali Funding Construction Bids: General Electrical Mechaniaal �,rchitect Fee Clty COSts: -2- $1,026,999 + 28,000 1�4,900 + 990 278,859 + 8,578 Equipment Estimate supervision SAC & Surcharge Issue. Expense 10 months interest Total Project Cost : $I00,000 12,000 3,000 59,475 84,837 Fundina Architect fees paid 85,000 Lease 1,510,000 From City Funds 205,739 $1,487,337 104�090 r r 259,312 �1,850,739 $3,85Q,739 Ta provide the city funds, the Council cauld authorize the following fund transfers without reducing fund balances below what would be considered safe 1evels: Utility ReserVe Fllrid '$ 25,OQ4 Engineering Fund 25,000 Industrial Revenue Fund 25,000 General Fund 130,739 To assist the C�ty in meeting future lease payrnents, we could establish a"Facilities Reserve Fund," which could be funded as follows: Source af Funds Feb. 1, 1988 Past Admin. Fee from TID $105,QOQ 198? Interest, TTD Admin, �ee 6,000 1988 Unallocated Admin. fee 50,000 Feb. 1, 1989 Unallacated partian of TID Admin. fee 1989/92 @ $50,000 each ��162,QQ0 200,000 �., City Hall Funding -3- � Oct.l, 1988 Sale af old Fire Hall to TID 175,000 �5� Annual funds to Cit�r iia11, . allowing fu11 spending over 15 year period 65,566 RECOMMENDATI0�I,LACTIQN REQUIRED " After review and analysis of the offers received for City Hall financingr I recommend that Cauncil accept the offer of Juran & Moody, Inc. If Counci.l conaurs in the recommendation, it should direct� Hriggs & Morgan to prepare the necessary legal documents far adoption by Council an Novamber i9th. � C I TY OF' MEtaUUTA NE I GHT� F'ro)ect Castse Issttance Castsa 7oto�1 Issue Si�e: Date F'mt t�la Yr• Ns�. 87 �8 8E� E� 84 E�9 9�1 9 ClJ 91 91 9� 9� 9,:� 9�+ 94 94 95 9; 96 46 97 97 9E� 9H 99 99 1�0 f00 101 101 102 I0L 1 Q.3 io� Camn�ence I nt F'm� Int F'mt 1 � ._, 4 5 b 7 8 � 10 il 12 1._� i4 15 ib 17 f E3 19 ^0 � si .,., �:. L �._y 24 25 �b �7 �8 �9 �} yJ 1 .450,00UJ, Q10 ?8 . QI�t� . D!� 1, 488. f�(�0. 4�0 F`avment Amo��n•t &�.1�4.@0 62. 1��. Qit� 87, 80#3. 9� 87 , 8f38. 4� q7, 8t3Q.9� 87.888.92 87 , [388. 92 B7, E)BB. 9c 87.888.92 B7 , E�a�. 9� 87, 88E3. 9� ' B7, E�68. 9'� � 87 , 8f38. 9.t f37 , E�88. 9� 87 . f388. 9� 87 , 813E3. 9? 87,8QB.92 87�888,92 87,C3E3�3. 4� 87.888.92 R7, 8i38. 9.^•_ 87�888.42 ��,e��.v� 67.888.9� $ 1� � 8��. �t�.. �3�, QL�B. 92 87 , 8E38, 92 87�888.9: 87, E3$B. 9� 87 . E3B8. 4� R7,8E3�1. 4� 8i,B88.92 2.760,915.6@ Interest ��rnpUn�nt 'bL, 1�4. @I� b�.i�4.Q0 b2r124.00 61 .048. ��1 �R,9�7.7� 58, 7b0. .�ti4 57��44.r� �b,�37.�� 54,957.5� �i,�B�.bb J� 7 �,..r.IQf. �»% 5(�J, 656. �S' 49,10=.91 47,4B4.&4 4S ! 7r�'7, 7b 44,d40,4S 4�, �fili9, 78 40 � w+02. b7 vC1,�+15.95 �b,�4b.�8 ::�4, 0"�0. ;�Ql ._,1,��4. 10 t9,�ii�4..t4• �7�06�.b7 ' �4,5�.�7.�4 �1,8Bi.99 19, l�b.'�0 16,.��5. �b 1 � � �la4. b6 10,1�9.10 b, 9�Mti,. 46 �ti,.�.t��. 0b 1,�72,915.60 F'rincip�l Companent 0 . �lQ 0. 00 : �,7�,�.5'2 �6,840.61 �,�-..7 � RFa 1. ^ttl �9,1�8.58 .:�0,;��44.70 :.�1,611.59 �2, 9� 1. ��7 L 4 , ��06. 26 ,�S � 7.:•i3. 55 .=�7, �,�,0. b.:� ::+8, 78 ;. 01 40, �404. t8 4�, fd91. 16 4�,848.47 45,b7�.14 47,5B6.za 49,57:.97 51.64�.64 5•�� , 798. 72 56,044.82 58, ti�t34. 69 6Q1, 8.'�s. 25 lS��ti�i.r'J� bb, 006. 9.:w b8,7b2.7� 71 , 6� •�. 56 74, 6.^4. �b 77, 7,?,9. B� 80,985.46 84,.'•bb. 86' 1 � 4E3Ei, 0QQ1. 00 �� C�,�.., ',*, �... �alance 1,48Q.000,00� 1 , 4QE3, 0fdf�. 00 1,488,0@0.00 1! 4bc ! 2� 5. iti8 1,4�5�394.47 1 , 407 , 43•�. �?' 1 7 � 7B y 4�+04. 69 1 i.;�47,�i5�9.99 1l�16�44�.40 i,Ge 1,�i�.ai•_� 1,249,110.77 � , �� ,:.i.:.+ �«.c. 1,17b,141.59 1 , 1:�7,,:^�56. �8 f,09b�95�.30 i�da4�861.14 1,011?012.67 5'bS,��L,S� 917,747.�8 Bb8,174.,:ti1 816, ��+3 . b7 i6�, 7•��, 9� 706,688.I� 648,.:�0.3, 44 587,481.19 5�4,119.61 4J8, I 1L• E}B �89,349.96 ,:�+17,71b.40 L�i'..? Z �ZI4�. 14 1b5, �.�,r. ��2 84.�6b.8b . 00 �..�,� • ,. DATE PAEPAAfDr 06-Nov-91 � � IEt�qiA IE1�fir8� M1M�50fA LfA� PAYlQi� SpfDl1E DAtE 1RTERE6T �ptiH DAY YEAR �1iE 3 iS 148A S.7�X 11 IS 1488 S�T5X S IS 1984 6.44X 11 iS 1484 b�00x S 1S 1Q44 b.24X il 13 i996 b.20t S 1S 1991 6.�01 11 !3 l94t 6.�4x 5 15 1991 6.60X !1 1S 1942 6.60t S 1S 1993 6.BOL i1 i5 1943 b.84X � is ��r�- �.00x 1! !S 194� 1.00X 5 iS 1445 7.20X U !S 1995 7.20J1 S !6 i�4b �.�OX II 1S 1996 7.�DX S 1S ;941 7.6Qz 1! iS 1997 1.601 S i5 1448 7.94t u �s iv4e �.eoz S !S 1444 1.44X 11 13 iV99 7.90X 3 15 1004 B.00x 1! 1S 2000 B.00X 5 iS 2001 8.10X ii ts 2ooi e.ioz � is 2002 e.zox yi ls 2ooz e.zoz S 15 T003 A.25x li fS 2403 9.2511 FRI#�IPAL 4.t� 0.00 34,444.44 34�004.00 35t444.00 35�000,00 35,0OO.OD 35,000.04. 35�000.00 �O,Q00.44� 40,000.00 44,444.04 �o,000.ao �5,000,00 � �5,000.08 45,OOO.pO . 58,000.60 � 30�000.00 54,400.OD 50�000�00 5,5,404.04 55�000,00 55,400.Q4 b0�008�00 60,000.00 b0,000.40 65,000.00 TOf00�.4D io,000.00 �,000.00 T5,000.00 64,400.4Q f1�510,000�00 � 1NTERE5T PAYIflit 56l�.T5 56,559.75 S6f5'`,i8.1� ��b58�73 5�,158.75 53,b73.75 52�599.15 31�468,75 54�349.75 44,193.7� �1�973.73 4b�3! 3.7� �s,ts�.�s �a,1s�.�s �2,178.75 40�559.T5 38,938.73 31,088.75 3.5T23B.T5 33,339,13 31,43B,7S 29�293.75 Z1,U&T5 2�,97b.�5 22,606.25 Zt}�20b.25 17,H4b.25 15t173.75 �z,�e.�s Q,�c�.�s b,393.15 3�344.44 11,168,15b.25 � 6EMI-Alf�lAl FAY!l��ti f56lS58.7S 5G�S59.75 86�558.15 BS,b59.75 84,738.15 88�673.75 B]�588.75 86,+46B.T5 85,3�IB.75 89�143.15 8��8]3.75 86,513,75 es,�s�.�s ee,�sa.rs 8I,i78.73 BS�559.15 88�938.75 8I�088.75 BSt238.15 83�33A�7b 8bt438.75 8�4�293.75 91�l�9.15 8�,976.25 82,b06.25 80�206.25 82�A06.25 85,1T3.75 ez,�e.� e�,�e.�s ei,s�3.rs 83,340.40 f1,618,15b. ZS .� � 5E�J-�MpAt ESCR011 �ENT FEES f544.Q4 a00.00 54P.4Q 500.00 500.04 580.00 500.00 508,04 500.00 504.4Q �00.00 540,40 soa.00 soo.00 500.00 500.00 �i W �10.00 500.00 540.00 544.44 500.00 500.00 500.00 500.00 5{}0.00 500.00 500,40 soo.00 �oo.o� soo.00 504.04 116,000.00 � ' I �{ i ii I !� i`r, ` � � ��i � }� �t ."!� 1 : � � ,} id:R• an�:Tl :i.` '-fi; �'a }ET RfQU1RED CALL NXII)1T SE#IT-Ati�1E. AFtER PAYlfJiT 5I,456.15 4.40 5I�058.75 0.06 87�458.15 4.40 6b�#SB.T.i 8.00 40,258.15 0.00 89,173,75 Q.00 89�OB8.15 0.00 Bb,96B.T5 0.04} B6�B16.15 0.00 $4,6q3.75 Q.44 88�373.75 0.80 87,0l3.75 4.40 es,a�.rs i,i2b,isa.00 av,zsa.�s �,oeo,�oo.00 � 87,b78.75 i,032�b8�.30 •"� Bb,OSA�TS 987�330.00 84��438�73 43�,b�4,00 87,588�75 BB1�400.00 H5,738.fS 832TQ75.4Q 93,83A�1S 181�950.00 96,439.15 IZS,U44.00 8�1�793�75 b70�080.Of1 82,64A.I5 615�000.04 85��4�6.75 55S,Ob0,00 83�1Ob.2S �95�000.00 80t70b.25 �435,044.OQ 93,306.75 370,q00.00 85,673.75 344,04Q.4Q ez,e�e.rs z�o,000.00 e�,4�,r� i�,000.aa ea,e�3.�s eo,00a.00 83,844.00 . 4.04 12,69�4,15b.73 � � �S y ,��/r� � h; .� ......� [9-�H-SI SL'BSZ� �� Sd'BSO�LSt .....�...�... 8£'L61�18f � IL£6'6 � 00'900`S( .��. Q0689�(6'L �� x�60LIZII'8 XO££I I� I 39Hd �31W �II9Q'KI �1N31Atld 11!(NI{f-[N39 {�1i1(Vfl �IN3UINd 'llftll�f-I{I39 f111[N[W �ll41AVd 'l�ff+llf-IW39 � �3jI139�i3�tl i3lk3A Q�I18 RR�II:�I � 31W ll�Ildl[ i , �311h1193H31t1[ �1I193ifl l�i �NQd1Q� 39�1 ...r.....�.... 00'000'OtS'ts 00'S[S.� 00'0 00'0 00'SL6�£T xSi'i 00'OOT`SI 100'1 00'0 00'OOS�Z 00'000�8 00'000'OSti�t l00'OOb�OSi 00'0 00'OOO�OOS� If �� I ' ' ( . j . ' iAY9'l�llf 39�1 ' , • : �ltf�l 9Qil! l�i ; +1S�f3iNt Q�TIINIIdNJ � �Qfl! 3M1l�l • �1N�9I0',tAlltl�DQI � 9,lpSS31 �II1NItld ' �3ii 3xNld3�lt lIO�S3 �'[3�1109 QOe � ?; ; �l� 1931ald 131 ' ! �991II�lifi Q11! lp1119[f�Y I : lx3ud[Rp I ' ' , �19� 1�31'Q!d • . , �,, .:`..,� � ��. . .. , ;: NO(190d19� � i14f�A i� I�AI !l113� IQil�l� 3Y143�751lI31A�diR! 1bfNIV-II[�9 tl1063NIW �9ll6l31 YIODi�I � A►'� IB-�N-40 ' �Q3HIld3!)d 31M0 • �J _�,'•. F CITY HALL PRaJECT MANAGER CQNSULTING SERVICES AGREEMENT This Agreement, made the 3rd day of November, 1987, by and between the City of Mendota Heights, 750 South Plaza Drive, Mendota Heights, Minnesota 55120 {hereinafter referred to as CITX}, and Mr. Eugene H. Lange, 3664A-Abbey Way, Eagan, Minnesota, 55123, (hereina�ter referred to as CONSULTANT). It is agreed by and between the parties as fallows: 1. The CITX hereby retains the services of the coNBULTANT to carry out the responsibilities o� City Ha11 praject manager prior to and during cantruc�ian of tha new Mendota Heights City Hail facility. Said duties shall include, but not�be limited to: • a) attendance at all pre-construction meetings; bj periodic on-site inspections at intervals as directed by the City Administrator, ineluding weekly on-site meetings with architects, Eor the purpase of ensuring contractor compliance with �he plans and specifications; cj serving as CITY!S representative with arahitects and,contractors; dj coordinating, in concert with City staff and ather consultants and vendars as may later be hired, the selection, purchase, and delivery andjor moving of systems and furnishings not covered 3n pro�ect contracts, i.e., telephone system, £urniture, radio and computer systems, etc; ej assisting in the resolution of any di�putes between the CITY, the architects, and/or individual contractors; � fj advising the City Adm�nistratar and City Cauncil in regard to any project change orders and in certificatian of payments far bath contractors and architects; g) keeping City staff and Council advi�ed of �eneral pragress of the project, and alert to pending decisions and actions that need to be taken; hj providing other general sup�ort services as may be directed by th� City Adm�nistrator and Council. 2. The CONSULTANT will report to and be supervised by the City Administratarl and will carry out his responsibilities in a manner generally pre�cribed by the City Admi�istrator. The C�NSULTANT shall not have the authority to take any action which may bind the City without prior written consent from a duly authorized afficial af the City. 3. Compensatia» for services performed shall be at an hourly rate of $20.Qd. The CONSULTANT ie also authorized to charge the CTTY 20.5 cents per mile for use of a persanal vehicle while ca»ducting the business of praject manager, and to charge reimbursement for direct purchase of supplies necessary to carry aut the duties of this contract. The CONSULTANT ehall submit a manthly invoice itemiZing hours of wark, and expenses for reimbursement. ., 4. The CITY will provide affice supplies, clerical services, and ather items of general administrative support necessary far fulfilling the responsibilities o� projec� manager. 5. The CONSULTANT shall obtain coverage far worker's compensation to pratect himself from injuries that may arise in the course af performing the duties af this cantract. Evidence .of such coverage shall be provided ta the CITYr and upon pre�entation of an invoice, and CITY will reimburse the .CONSULTANT for the premium cost o� said insurance coverage. 6. The CITY shall not be responsible for payment of any additianal compensation or benefits. The CONSULTANT shall be deemed for all purposes under this agreement to be and independent contractor ra�her than an emplayee o�•the City. 7. This agreament shall the date of execution hall project. Either agreement upan thirty to the other party. '�uqene . anqe, Consu an Kevin D. Frazell City Administrator be for a period af time from through completion of the city party may terminate the (30} days priar written notice Date Date a To: From: :n MEMO CITY OF MENDOTA HEIGHTS Mayar and City Council iievin Fraz � r( �l�y / Adma,nistrator November 6, 1987 Re: Potential Offer tc� School Di.strict 197 Regarding Sibley Athletic Complex After Tuesday evening'� "discussian" about the athletic complex, Councilmembers Cummins, Blesener, and I met with School District officials Wednesday marning. The meetinq wa� surprisingly more cordial and aalm than one might expect. School Board Chair John Niemeyer indicated that he felt the ball was in the City's court, since we had essentially pulled the plug on the three Phase offer that the School Board had discussed Monday evening. He invited�us to submit whatever we wished to the Board for its consideration on November 16th. G�f.i - ��i Jann, Buzz, and I met again Wednesday evening to come up with a scheme that met the dual objectives of being very simple and equitable. We decided to abandon the ��partnership" approach in favor of a more arms-length business transaction. The concept is as'�ollows: 1. The District �el].s its property 3,n the northeas� corner to the City for a specified, fair market value. The City acquires the West and Hi].debrand properties and develops the park. The City is solely responsible for maintenance and scheduling, although we might, at some time, choose to contract with the District �or those services. 2. The City pays the District an annual fair market rent for use af its parking lot. 3. The District has the opta.on to annually lease use of the athleta.c complex during sahool hours �or an amount to be specified in the agreement. .J An agreement incorporating this proposal has been prepared by the City Attorney's of�'ice, and is at�ached for your review. THE NUMBEI2S The attached agreement leaves blank spaces far filling in the numbers on land purcha�e costs, and the annual lease payments by the City for the parking lat, and by the District for the ath].etic complex. However, we feel that, if Council decides ta £orward the agreement ta the District, it should be filled in with specific numbers. Needless ta say, arriving at thase numbers requires making a 1.ot of a�sumptions and projectians. Merely as a place to get the di.scussion started, I of�er the following. Land Value I called appraa.ser Blake Dc"lvls� who did our West and Hildebrant appraisals, to reconfirm land values in the area. It appears that the $20,000 per acre we've been u�ing for unimproved land is still valid. Based on this, and assuming the District awns 3.5 acres (a fact I'l1 get confa.rmed before Tuesday), a fair offer to purchase their property would be 570,000. Lease a� the Parking Lat Barry Warner's origina]. analysis valued the District's 190 parking spaces at $500 apiece, for a total $95,000. However, this was at 50� depreciation, and did not include the value of the underlying land; the parking lot lies on 3.3 acres, maka.ng that underlying value $66,000. Original construction value of the improvements wauld be $190,000, making�the total value $256,000. If we tru].y structure the deal a� a�air market lease payment, our payment should be based on that amount, since the District would be salely responsible far maintenance, repairs, and replacement of �he 1ot. Dale Glowa of United Properties tells me that the reaZ estate industry standard of caiculating annua]. rental incame is 10� of the value o�' the praperty. This is true for bath improved and unimproved property. Since this private sector "ru2e af � ..- � � thumb" would be ba�ed on taxabl.e interest rates and a return an eguity, I arbitrarily decided that an 8� rate might be more appropriate for our purpases. I also assumed that the City would be responsible for only a S0� payment, since the District would still be using �he lot �or its high schaol. Applying al1 of the above assumptions yields the following fair market rent for u� to pay the District: $256,000 x .08 x .5 = 10 240 Lease of the Athletic Complex I then applied a similar analy�is to arrive at a fair rent for the District to pay us for use of the ath].etic complex. Barry Warner estimate tatal canstrtzetion costs of the complex at $1,045,Q00. The following adjustments must be made ta that number�: $ 1.045,$80 + 70,000 extra land purchase ' $ 1,215,880 - 45,000 tennis court lighti,ng; no longer part of pragram - 148,000 sports lighting; not needed by District - 40,000 south campus sails correction; no longer part af pragram - 90,000 comfort station; not needed by Distriat ??? $ 792,880 i It is also assumed that the respective use would be two-thirds City, and only one-third Sahool District, since the south campus arsa is no langer part o� the project. The previous assumptians lead to the follawing fair market �rent : $792,880 x .08 x .333 = 21 122 There would need to be addeci to this, same figure for annual maintenance co�ts (i.e. mowing, liming fields, etc.) Since thi.s is such an unknawn, and could vary so dramatically � depending upon level o� use, I would suggest that the agreement simply ba that the� pay one-third of the actual maintenance costs, which would be determined by force account. Let me assure you that T have no strong pride of either the background assumptions or the actual suggested. Council should feel completely free eithsr ar bath..• ACTSON RE4UIRED awnership in f igures to play with This is one last-ditch effart to come up with something the City and District could both live with. Gouncil will need to determine first, whether it wishes to even pursue the matter, and secand, if so, what the specific contents of the affer shauld be. Barry Warner is'working up a cost estimate af developing the Riley park alternative as presented in the la�est Centex plan (the one Cauncil saw on November 3rd). Barry�s report will be available Tuesday evening, and I also have some updated thoughts on the land value which T wil.l share with Council.. This wil.l hape�ully be of help in deciding the respec�Give attractiveness of the two alternatives. r ' � NiEMORANDUM QF UNI7ERSTANDING The purpase of this Memorandum of Understanding is to set farth the present understanding of Independent School District No. 197 (the "Schaal District"} and the City of Mendota Heights, Minnesata (the "City"), with respect to the development of an athletic field complex adjacent to the Henry Sibley High School. WITNESSETH: WHEREAS, the Schoal District is the fee owner of certain parcels of real property identified as Parcels 1, 4 and 5 on ExhibiC A which is attached hereto and incorporated herein; WHEREAS, the CiCy desires to acquire from the Schoal District that certain parcel of real property identified as Parcel 1 on Exhibit A; WHEREAS, the City desires to acquire additional privately awned iand identified as Parcels 2 and 3 an Exhibit A; WHEREAS, the City and School District desire to provide far the development and use of a variety of athletic facilities on Parcels 1-5 (the "Complex"}, substantially as described and set forth in that certain Memorandum from Barton-Aschman Associates, Inc., dated December 12, 1986 as revised December 30, 1986. WHEREAS, the City and the Schoal District desire ta acC cooperatively in the developmenC, utilization and tnaintenance of the Complex; > � WHEREAS, the City intends to construct and develop the athletic facilities to be lacated on Parcels 1, 2, and 3(the "Athletic Facilities"); WHEREAS, the School District desires to usethe Athletic FaciliCies; WHEREAS, the Gity desires to use Che parking lot iocateci on Parcel 5�the "Parking Lot'rj. NOW, THEREFORE, it is hereby acknowledged that the fallowing document contains the basic terms af the agreement and the parties do hereby agree ta negotiate in good faith and to enter into a forrnal agreernent based upon and including the follov✓ing Cerms: 1. AcQuisition of Complex Property. a. The City shall purchase fram the Schooi District that certain parcel of real property identified as Parcel 1 for the sum of $ per acre ($ lacre), Upon tender of said gurchase price, Schaol District agrees to deliver good and nnarketable fee simple title to Parcel 1 Co the City. b. The City shall undertake a gaod faith effort to acquire by valuntary conveyance ar by condemnation those parcels of property identified as Parcels 2 and 3. Acquisition of said pareeIs 2 and 3 shall be a candition to the City's obiitation to acquire Parcel 1. c. The City shall hold fee simple title to Parcels 1, 2, and 3, sub;ect only to the rights of the School District as hereinafter seC forth. -2- � 0 2, Initial Cost of Develaprnent, Development Plans. a. The City shall bear all costs a�'sociaCed with the acquisition of Parcels 2 and 3. b. (1} The City shall bear alt casts assaciated with the construction and development of the Athletic Facilities; subject to the contingencies set forth herein. (2) The City rnay, at its sole discretion, during the term of this Agreement, rnodify, alter or otherwise change the locaCion, arrangement or configuraCion of the Athletic Facilities. c. (lj The City shaIl grade, drain and seed Parcet 4 so that said parcei shall be suitable for use as a soccer field {the "Saccer Fie�d"). {2� The City shall be entitled to remove, � at its sole cost and expense, any and all fill material caused by, resulting fram or remaining after said grading, draining and seeding of Parcel 4. 3. Maintenance. a. The City, at its sole cast and expense, shall maintain in a good and apprapriate canditian Che Athletic Facilities to be located i� Parcels 1 thraugh 3, respectively. b. The School District, at its sole cost and expense, shall maintain the parking lot lacated on Parcel 5. -3- D ,.� 4. Complex Use. �,, Parkin a. The School District shall grant a license to the City to permit the City ; and all residents af the City to park an the Parking Lot lacated on Parcel 6. b. The license shall be an annual license for a terrn of up to 99 years; unless saoner terminated as herein provided or by mutual agreement of the parties. The term of the license shall cammence on the earlier af {i} the date the City substar�tially completes development af the Athletic Facilities or (ii) . 19 . '``� c. The tertn � af this license shall be automatically renewed annually, upon �° the terrns and candiCions, as herein provided, unless the City provides Che School District with written notice at least sixty (60) days prior to the expiration of the end of any calendar year that the license shall not be renewed. d. The Schooi District shalt not by any means ar methods imgair, restrict or otherwise interfere with the CiCy's reasonabte use of the Parking Lot; and the at all times during the term of this Agreement the School District shall provide, protect and guaranty 190 parking spaces (the size of each space shall not be less than the minimum size under the Mendota Heights Zoning Ordinance) for the sole and exclusive use of the City and all residents of the City. �� , ' rent shall remain fixed for a period of years and shall thereafter be � - adjusted every years in accordance with any increase since the date of closing or the last rent adjustment date, as the case may be, in the Index. j. In the event the lease is renewed pursuant to the terms of this Agreement, the annual rent shall be adjusted in accardance with the following provisions. ' k. The City tnay, at any time and at its sole discretion, alter, modify, or make capital improvements to the Athletic Facilities. In such event, the annual renC payable by the School District shail be equitably adjusCed to incorparate the amortized value of the aiteration, modificaCion, or capitat impravement. The City may also, at its sole discretion, elect to terminate us� of the subject property as an athletic facility by giving written notice thereof to the School District at least one (1) year in advance, at which time the lease by the Schooi District shali terminate in aIl respects. 5. City Bond Issue. The obligations af the City hereunder shall be contingent upon voter appraval of the referendurn for a rnunicipal bond issue in an amount sufficient to cover the City's costs incurred in the acquisition, constructian and development of the aforemenCioned real praperty and Athletic Facilities. 6. Liability Insurance. The City and the School District shall procure and rnaintain liability insurance to the maximum limits af coverage available for their respective praperties and the impravements therean. The cost of such insurance -6- shall be included in the respective annual budgets of the City and the School District. 7. Modification. No amendment, modification, termination or waiver of any provision of this Agreement shall be effective unless the same is in writing and signed by all of the parties hereto. The parties acknowledge that the foregoing documents is merely a memorandum of understanding of the basic terms of their agreement with regarding to the development of an athletic field complex and is not a binding contract. Upon execution hereof by both parties, the City shall cause a formal joint venture agreement to be prepared and delivered to the School District for its consideration. IN WITNESS WHEREOF, the parties hereto have hereunto set their hands this day of , 1987. Independent School District No. 197 I: Its City of Mendota Heights, Minnesota By: Its Mayor Attest: City Administrator -7- Barton-Aschman Associates, Inc. 1610 South Sixth Street Minneapolis, Minnesota 55454 612-332-0421 N�B�RANI7CTM T0: F'�'i: DATE: Si.TS7ECT: City of M�xlota Heights Barton-Aschman Associates, Inc. Nave�nber 10, 1987 Revised Tandem Corporation Site Plan Alternatives - Riley Site Ca�nnmxnity Athletic Cca�q�lex The purpose of this memorarx�imt i.s to identify anticipated develo�lt aosts associated with the revised Tandem Development Corporation site plan alternatives for the Riley Cc�nunity Athletic Car�lex. The cc�m�ents relate to concept P-1, the cul-de-sac alternative, and P-2, loap road voncept. Development Costs Devel��t costs for the two revised concepts are s�mm��arized in the attached Tables 1 arid 2. These costs are very similar to those identified in our previaus memoratx�tun dated August 21, 1987. That memorar�dtnn revic�aed the pros arid oons and construction costs of the initial "cul-de-sac" ar�d ... ... .. .-. Minor progra7mnic differences, suah as the rnunber of veh:icles, exact park features or facilities to be lighted, alter the oosts for each of the alternatives slightly. For all practical puzpo.ses, haa�ver, these cast differences are minor and should not play a major role in determi.ning whether the cul-de-sac or loop road concept is appropriate. 'Ihe aosts may be of issue in aca�aring the Riley site versus the Si.bley site. Due to the virtually carnparable cost for both aor�cepts P-1 and P-2, we recoimnexr.l that the City of Mendota Heights concel�trate on other criteria in addition to construction oost in evaluating the alternatives. Items for consideration shauld include: A. Concept P-1 has a long cul-de-sac which results in awkwa�l traffic flvw. This traffic may pose problems if residential acce.ss is allowed onto the cul-de-sac road. B. �he oost for this cul-de-sac road has been included as a part of the P-1 c�st estimate arrd its ex�en.se should be shared with the develop�x. � Barton-Aschman Associates, Inc. C. The loap road provided as a part of P-2 increases the exposure of park property to the casnumuzity. This exposure may be of oonumuzity benefit; however, on-street parking by park users may conflict with the neighborhood if left unr�u].ated. D. Concept P-1 integrates both the neighborhood and ccumminity functions within one parcel. The neighborhood facilities are concentrated near Mendota Heic�ts Rpad whereas the c�um�nity facilities are located deeper into the site. Concept P-2 segregates neighborhood and czernnunity facilities connectirig them with a trail link. E. Both concepts will have similar light pollution impact to the abuttirlg 1'�2.S1C�2ri'tl�. ri21C1hb02'�lOOC�{S . M23SLlZ 25 Il1U8t �C? �ri 't0 m i r� i m i Ze t1'ilS intrusion by using earthen berming, plant material screens, architectural design and lighting lwnin�aire louvers. F. Bath concepts pn7vide adequate neighborhood and co�mm�nity access for pedestrian and bicycle traffic. Firlal c�sts for either conoept will vary frcam these preliminary rnm�bers. The change, while not significant, will occur due to design program modifications such as buildirig size, n�nber of lic�ted fields or trail lerigth. BJW: l�+o E Ti�E�LE 1 �L►ERs�HiTVE F`—f �:RILEY _:ITE? i:?i'=;T E�,TIt�1��E �:ii/ii;/�,7j G I TY i�F hiEhlC;i iTr� HE I� HT:=; �Y' ; E,q� � i ii�—i�':�C�Ht�iH��l F�::;::,i�K� I�+Tt:=� , I�,ii :. ITE�1 lJt� I T ��Jtu I T ��Jr��iT i TY � f`F I�: E; C:i �':�T ' -------' -----------' --------' ----- �— ,— �— �— C:LEf�R r�tvC� G�i �E, 1!� � iF '� i TE A� �. MEC}I�1�i TFiEE'�� Ti� �i;" C�IFtM. �:��thiM�:►N E x�:�t�'r�T I i:�t�! �� . Y. FINE GFit��Itvt�, FEfiTILI�IfvU AG�. ANC� �=;EE�; 7 �vc; FSNF CFi�CjIN��, FE�TILI�Ihi�a '3.Y. A�IU =,i iG� I �i!� 4" f�G—L I ME I f�� i E� C} ti, . Y. PHR�;itV+� L±iT; C:+�td'�TRi1C:Tiiitv t" E, i i. WE�t� I i�i�; t:�=<<�R:_:F =. Y. �" A�ii�iEt�HTE E�F;'��F L� . Y . �a=iN� : . �I�FE� � G� �TTE� L . F . {�T� ifit? :: EWcR r�Y :�TEhi L . :a . C:l 1L-C1E-.jf=1l: t:{ I�f:_�T�� :j I i it� 1 1! �" E� I T.�►EF�R I Nt C:i �� 1R'=�E �� . Y. .�,,, B I i. E.�,=;� C:i it 1h::;E �. Y. F,�J ��;��;E��t i E E�A'=,F �, . �` . C:i +tvC� . G►JRE, °� GUTTtR L. F. :=�TCiRM �;FWER :3YL;TtM L . t� . ,;' E� I T4Jh�i I�i� i�Jc� TR� I i. L. F. _ TE�V[V I:_; {:� ii 1RT:=; L.:_� . {:Ihi�:��J!iE:; r=Et�i�Itd�? E;a:=�E:::�TE�t�L FtP�C� : . Y . V� +LLE`�F�HLL �:i �( lt�: i :_� Ec�i 1 I F'i�E�iT E��=�EE�tL�i=:C►rTE�H�L E:�►C:1�:'=;T►_iF'::; E�. Fi ii �TE�r��i /�i �C�C:ER G� ��tLF'i ��=;i'=� EFr . H►_iC��:tti` ��_��`::; EA . Hi +i�k::El�� R I Nk:: EIVi :Li i�_,i 1�'E L.'� . Er�'=:f�:ETE�ALL :�TF�fyCrFl!iL� E� . Vi iLLEYE�HLL ��TA��GF�FG EH . �':H� I N—L I Nt�:: FEN�:F H�� il�h�D 1 E�AL;EE�H� L F I ELC� L. F. AF�i �l Jt�Ir, :; :;i iFTE,�t� L F I ELG'_; L. F. LI�hi I�I�� _ TENP� I�:� G[�t iRT::� L._. '_;►_iFTE:ALL FIE�G — :� FIELC�:� L.'_�. Li�I:G�F' FIELD — 2 FI�LD::� L. _�. E�A'=�EE�ALL F I ELC� — 1 F I ELG L.'_� . Hi��C:k::FY �;It�t�:/FREE '��::�TE L.'=:. PAFir�:I �IU L� +T`� l: f) L.�� . �l1ILDII3i; ':�.F. F I CN I G�,HELTER EFi . F'LAYGRi ►I�NC� F1REN E€� . E�LE�C:HER�� ; �t;i; t�(�f`�1C:I TY i L.�. Lf�NG:3c:GF' I f�r; L . '_� . FIELG IRRIGHTI��rd L.':;. tF, ?7tiCi.!)t; Sy�CiC;.liii �,i;iriri7 i.i;ci ��:i�iaiaiz.iyi; 1�, i�i;�;.iyii �4��i�i;,��i� F.t� j�,Ci t, i;(i j��:;i:;C; , tri; ::r�i }(_i :� , �Ci j �E,t )i_) , ()i i �tt:ltilr �.i1i; ��;1)ii+i.(iti l�iiiiii t.]tj :;�QtNi,tiij r�; " � ' ' _�iitii) ,(ii) t�,t}i,)ti,fiii 1 17i�iy�,.�;ia �7iiiti;.irii %tiii 7,t:}ii �� I��;,�;iy F� j,F,Ciii,f)ii i �i�i;.iyia 1 I��}:i.tiij i � i_ri )C) . i ii; i 4i y�; , t;i; 7;:(yti . i;t) 7�� iC) , t ii:i F.:��,�i.i�i� j,�{)(ifi,tiiJ � �,i )i ii_i , f ri; i.�t�.r )i; .1')tj _;��i �i;:; . i�i; 1�'�ti it i , Cii ) j:_;iiti �,,C)!) F,�i)ii,iit_l :3:;iii� �,t�ti 1�,.5i��a.iyi� it_)i if Yi i, t}�,l ��i �i �i ;� r . i;i; �.i i()t ii) , (!t i % i li i('}t'i , (1t ) � ::C�i;i; . i �i; 1 �i ��;i; , i ri � 4�,i�iy Z �i?t ai � , i rp � 5irt�z; , i�i} i �,5t;i; , �ji � i()i)t_)i) , (li_i t�C)t iCii � , t itj '_;11E�Ti �THL 1��:� CiiNTIt�iGE��IE'_� Ti iTAL E'=;T I h1ATEC� C�►_i'3 i F'-1 kLTEhNHT I VE il)iitli),(lii ��c:�i �i �i � . i ai � ��t }i Ji )t_) , (1{_i 7iii)titi.i)i) � :;i�iyir . i�i; i�iriri�.��i� 1=,��i �i � , i 7� � 15iji tQ . iji ) � �i �<rc) . i 7i; i�.�i �t; . i �i ► fili)i)ti3Oii 4i �� i� a�; , i;i � 114`�.5; ;� i . tii r 11 ��=� �� i r. �)i i 1 �r,�(if ii) (ii_i TAELE �. ALTE�ii�HTI4't F'—� (RILEY ;:�iTE? t�G�3?' E=�TIh�HIE �:��.!i��!c;!? C:I TY �►F f�E�1u; �Tr� HE I��HT'=� EY ; E�HRT►_��—H:��Hh4HN A`=:'_:�_ti : j�TE'=; , j Itji :. k1��IT ITE�i � ��fivIT � �.�E1AtdTITt' � F'�i�:E � �:►�':;T ---------------------------;--------;------------:---------;-------- C:LE�iR AhiG G�� i/�� i_t� '::1 T�. FiC� . MEUI!J�i TREE'=� TC� ii�" C�lt��. Gi ihit�i� ��f E k i:uVt�T t � i�� t: . Y. FINE �.��t�C�Ihi��; FEF°TILI�ihl�� A�:. ANC� �:;t� �f i ��; FIhIE ��;�tC;II��;, FtRTILI�It��; :��.Y'. ANG ��i �pE; I t�iG �" F�,;—L I �E I t�!= ! ELC� '_� . �` . r^ARk::I�i�� Lr��; C:� �i�:� i F:;;�:Tii �ry �'' E� I T. WF�,� i�vt; �:i �� i��_�� :.'t' . t��" A��E�:��iTE E;r�'=�E : . Y . �:i_E�vt : . �:t ih�, r'� �;t tTTEF � . F . �;Ti_�f�M '=.E4JtF ,_;'t'°=�TEt� L . '_, . =_` E�ITI�MI��i�i!_; T��IL L.F. :i TEi�tv I'=� Gi �i 1n��_, L.�� . �:1 r�r:�� iL�F:_; �E�� : r �;s; ; E�A'_;��::�.TE�hLL F��vi j ::� . Y . Vi iL�E��E�tLL t:� it ��T::; E��l� i F'�i� NT BF+:�EE;N�Li:::i ��TE��L E;�t:�:;:=;�i iF':=� EH . F�ji �Tr��L/'3� it:i :EFi G� ��t�F`� i=, i=_ EN . {�I_I�.��..t T� 1]i �i-'��L =� EF-I . �I_fi :�C.t`f R I fv��:: Ei4�:�i i`.jl i�i� L.:� . E��t':;f;E I E�HLL :_�T�1;�� iHh�.r Ft� , Vi_�L�EYt�r��L _ i r;iv�.�h�� EH . ��iF? 1 �—L 1 ��:. �tFV!. ` HRi �ilk�� 1 E��+'=;FE,�+� L F i ELC: L. F. �F�, ��;�aD =�_�i �FTE�HL� F I Fi rx�_, L. F. 1 TGI;IIN�; _ TtP�fi�j�=; C:f�ii�T:=; �. _ . �;� �FTE�H�� F I Ei C� —:j � I E�G`=, L.°3 . :_��:��:�:E� FIELC� — z �IELCr�=� L. =�. E,�i':�E�H�L F I ELQ — 1� I ELG L.:3 . N�:��: t�::EY F I i�I:::IFFF� =,E;:r�?E L.'_� . F'H�r:: I P�i; �i iT:=� t: 2 i L.'_� . E;tIlLDTt�i; _.F. F I C:t� I i::_;FttLTE�: E� . F'L�iY��L�I itdD Hr+Ea Ea . ELEHt= i�F�:; i:.S��i; �:HF'r��=: I T�` :j L.'_, . L�1;��:=;t�:i�F' I f�� L . :_� . FIELG IRRI�FiTI��td L.L:. -�-,..:. . �'r"� :,�,}i,.1;tj �yf{lii.t)i) i{iiiiii: f.(iii �.d()tiiit),{ii) Zl�, l�,ii�i,tit� c�iii)ij,iiii F,di`t.i t.iii) �,t�_1:;Iii).(iii :��F,t;�; :.�+i:r �.�F,fii;.t;:; �fi)iiii �,(_)Ci dQ(}sis?_iii; l! '.•:'S,,•'�ili.{i(_i Ilijiiti z.7� _;iii;il � .(_)i) �1Otii;.(iii i i1Ci(ii),Ciii iii'itjii.iiii Li�)t) 7,�1t_1 �LQ:lii,IJ:� 1 :;'�liliii,(iii :;`�iiitJii.titi 7t?i) 7.iii; �'�ii�).C;i; 1:;(i:i �,,t_3ii t��;iii,i)ii ;=;ilt) r , tiCi j,t.;(i�i, tiij st:lt lt i{_) , (!i } 'yliS)ii�i, ii{i ;:iittt;i? Cii) 7i;i is;i i . i �i) � _�(ti:iii , iiii j. �,i ii it:� . titi L� 4 . (ii:i j, �t:ii iij . i ii_� j =�i;Cli l . i )i i i r��.5( i� i, Cit:i i_ltlilil,�ll1 4i ti;i )i � . Cri ) ��!ETi �THL 1 t? �, �:i itv.T I Pd�;r tv: : T E�=; iI.)i i( it i, i_ii_) y;ii)iiii.titi �:t1(ll)I1 tlt; 7ii�ititi.Cjii 1 _;(ii)t:? . iJii j�i)()_t,()l� � :;�t_)iii.i , ili i i�,i)+iti.ilil � �c:1c;c:, . i �t r ir,�flt;.iil; iil(liiil,i)ii ��iii(iii.iiti 11I:;iyi�i�.i��y 1 � ��i li; , i t�; Ti iTF�L E'::T I t�r�TEC� �:i i'3 � F`—� �iLTE�:Nti i I VE 1 ��4i �i �i; . i�t; November 11, 1987 Mr. John Niemeyer, Chair School Board Independent School District No. 197 1897 Delaware Avenue West St. Paul, MN 55118 Dear Mr. Niemeyer: Over the past year, officials from 5chool District 197 and the City of Mendota Heights have met repeatedly to attempt to come up with an agreement for the joint development and maintenance of an athletic complex on the Sibley campus. Unfortunately, while we have all expressed our support for this cost effective means of ineeting the recreation needs of Sibley students and Mendota Heights residents, we have been unable to resolve several of the thorny particulars as to how we carry out this joint endeavor. As you know, time has become critical to the City, and we must either quickly reach some mutually acceptable way to proceed with the Sibley complex, or abandon the effort altogether. Attached for your consideration is a Memorandum of Understanding that sets forth one last proposal from the City as a good faith effort to reach an agreement. i We believe that the attached offers a much simplified approach to meeting our joint goal. The City would purchase the 3.3 acres of property now owned by the District in the northeast area for an amount of $,000, which we believe to be fair market value. The City would also purchase the Hildebrandt and West properties, and develop the planned athletic facilities on this approximate 10 acre parcel. The City would use fill material from the Parcel 4 area west of Sibley High School, and would leave the District with a graded and seeded soccer field. We would then enter a 99- year lease with you for rental of the use of parking spaces at an initial annual payment of $, , to be periodically adjusted in reflection of inflation. In turn, the District would have the option to annually lease use of the athletic facilities for use by its students for the initial amount of $,000, to be periodically adjusted to reflect inflation. We emphasize that this is an option, at the discretion of the Board. We think this answers those who are concerned that the District may be committing itself to future financial obligations for athletics, at the expense of academics. This approach meets the City's objective of having sole ownership and control of a complete athletic facility, subject only to the leasehold rights of the District. For the District, the advantages are numerous, and include: 1. Profits from the sale of Parcel 1 at a fair market value of $ ,000. 2. Obviating the need to spend further District funds in acquiring the Hildebrandt property, a potential savings in excess of $150,000. 3. An annual stream of income of $,000 from rental of the parking lot to the City. 4. The option of making athletic facilities available to Sibley students a predetermined cost. We trust that the Board and Administration of the District will give this proposal its serious consideration. We await your timely reply. Sincerely, Charles E. Mertensotto Mayor