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2017-06-20 Council PacketCITY OF MENDOTA HEIGHTS CITY COUNCIL AGENDA � June 20, 2017 — 7:00 pm Mendota Heights City Hall 1. Call to Order 2. Roll Call 3. Pledge of Allegiance 4. Adopt Agenda 5. Consent Agenda a. Approve June 6, 2017 City Council Minutes b. Approve June 6, 2017 Council Workshop Minutes c. Approve Resolution 2017-46, Renew Contract For Service and a Memorandum of Understanding For School Resource Officer d. Approve Appointments to Traffic Safety Committee e. Approve Ordinance 512 Fire Code Amendment f. Authorize Early Payment to City Of West St. Paul for Ice Arena Improvements g. Approve Resolution 2017- 47, Providing For The First Amendment To Educational Facility Revenue Note (St. Thomas Academy Project), Series 2012 h. Acknowledge May 2017 Building Activity Report i. Acknowledge May 2017 Fire Synopsis j. Approval of May 2017 Treasurer's Report k. Approval of Claims List I. Approval of Revised Resolution 2017-45 Concerning Support for State Bonding Assistance for Reconstruction of MnDOT Legacy Frontage Roads 6. Public Comments 7. Presentations a. Presentation of 2016 Audit — Matt Mayer, Bergan KDV 8. Public Hearing a. Actions Relating to the Establishment of Tax Increment Financing District 1) Resolution 2017-48, Adopting A Modification To The Development Program For Municipal Development District No. 1; Establishing Tax Increment Financing District No. 2 Therein; And Adopting A Tax Increment Financing Plan 2) Resolution 2017-49, Authorizing an Interfund Loan for Advance of Certain Costs in Connection with Tax Increment Financing District No. 2 b. Resolution 2017-50, Approving Municipal Consent for the MnDOT Highway 149 (Dodd Road) Rehabilitation Project 9. New and Unfinished Business a. Ordinance 511 Amending City Code Title 3, Chapter 1 Alcoholic Beverages b. Set Date and Time for Planning Commissioner Interviews c. Report on Closed Session - City Administrator Performance Evaluation 10. Community Announcements 11. Council Comments 12. Adjourn page 3 5 a. CITY OF MENDOTA HEIGHTS DAKOTA COUNTY STATE OF MINNESOTA Minutes of the Regular Meeting Held Tuesday, June 6, 2017 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 Garlock called the meeting to order at 7:00 p.m. Councilmembers Miller, Petschel, and Paper were also present. Councilmember Duggan was absent. PLEDGE OF ALLEGIANCE Council, the audience, and staff recited the Pledge of Allegiance. AGENDA ADOPTION Mayor Garlock presented the agenda for adoption. Councilmember Petschel moved adoption of the agenda with the addition of item 9i. Regarding State of Minnesota Funding. Councilmember Miller seconded the motion. Ayes: 4 Nays: 0 Absent: 1 (Duggan) CONSENT CALENDAR Mayor Garlock presented the consent calendar and explained the procedure for discussion and approval. Councilmember Petschel moved approval of the consent calendar as presented and authorization for execution of any necessary documents contained therein. a. Approval of May 16, 2017 City Council Minutes b. Approval of May 16, 2017 Council Work Session Minutes c. Approval of May 22, 2107 Council Goal Setting Session Minutes d. Designate Floating Holiday for Non-Union Staff e. Approve Extension of Light Duty/Modified Duty Assignment £ Approve Police Officer Hires g. Grading Permit for Mendota Corporate Center Parking Lot Expansion h. Award of a Professional Services Contract for the Dodd Road Trail Project — Change Order i. Accept Planning Commissioner Resignation-Authorize Advertising of Open Position j. Approve Out of State Travel for City Administrator k. Approve Resolution 2017-44 Accept Gift of $2,200 From The Dakota County Victim Impact Panel l. Approval of Claims List Councilmember Miller seconded the motion. Ayes: 4 Nays: 0 Absent: 1 (Duggan) PUBLIC COMMENTS Mr. David Hiner, 1295 Kendon Lane, spoke about on-going water quality issues in Augusta Lake and Lemay Lake. He believes the water quality issues are due to the runoff into that lake. Mayor Garlock replied that staff and the Council would take note of this issue; they will look into what kinds of improvements could be taken. PRESENTATIONS A) PRESENTATION OF PLAQUE HONORING PLANNING COMMISSIONER HOWARD ROSTON Mr. Howard Roston was acknowledged for his role on the Planning Commission for the past six years. As a token of the City’s appreciation, Mayor Garlock presented Mr. Roston with a plaque. Councilmember Petschel commented that Mr. Roston has an incredible skill set in terms of his understanding of real estate, planning, the law, and his ability to ask the right questions at the meetings. Mr. Roston stated that it has been his honor to serve. PUBLIC HEARINGS A) LIQUOR LICENSE RENEWALS City Clerk Lorri Smith explained that the following liquor renewal applications have been received, and background investigations have been conducted resulting in no negative findings for: Intoxicating Liquor and Sunday Liquor licenses:  Felipe’s LLC dba Teresa’s Mexican Restaurant, 762 Highway 110  Courtyard Management Corp. dba Courtyard by Marriott, 1352 Northland Drive  Haiku Japanese Bistro Inc dba Haiku Japanese 754 Highway 110 Club Liquor and Sunday Liquor licenses:  Mendakota Country Club, 2075 Mendakota Drive  Somerset Country Club, 1416 Dodd Road Wine licenses:  Mendo Restaurant Group, Inc., dba Mendoberri located at 730 Main Street  Windy City Pizza LLC dba Tommy Chicago’s Pizzeria located at 730 Main Street  King and I Thai, LLC, dba King and I Thai, 760 Highway 110 Off-Sale Liquor licenses: June 6, 2017 Mendota Heights City Council Page 2 of 11 page 5 • Twin City Beverage Inc. dba Mendota Liquor Barrel, 766 Hwy 110 On-Sale 32 �ercent Malt Liquor licenses: • Mendota Heights Par 3 located at 1695 Dodd Road • Mendo Restaurant Group, Inc., dba Mendoberri located at 730 Main Street • Windy City Pizza LLC dba Tommy Chicago's Pizzeria located at 730 Main Street • King and I Thai Corporation, dba King and I Thai, 760 Highway 110 Off-Sale 32 �ercent Malt Liquor licenses: • Northern Tier Retail LLC dba SuperAmerica #4521 located at 1080 Highway 110 Northern Tier Retail LLC dba SuperAmerica #4516 located at 1200 Mendota Heights Road Ms. Smith noted that a renewal application has not been received from Maple Tree Mendota Retail LLC dba The Wine Market, Suite 101, 720 Main Street. It is understood that the owner is working on the application and will be turning it in. This application could be considered at the June 20, 2017 City Council meeting. Councilmember Petschel moved to open the public hearing. Councilmember Miller seconded the motion. Ayes: 4 Nays: 0 Absent: 1 (Duggan) There being no public comments, Councilmember Petschel moved to close the public hearing. Councilmember Miller seconded the motion. Ayes: 4 Nays: 0 Absent: 1 (Duggan) Councilmember Petschel moved to approve the issuance of the license renewals as listed above for the period of July l, 2017 through June 30, 2018, contingent upon the City receiving the outstanding documentation from Tommy Chicago's Pizzeria Tommy Chicago's Pizzeria — Certificate of Liquor Liability Insurance and Bond. Staff expects to receive this documentation before they are issued their license. Councilmember Miller seconded the motion. Ayes: 4 Nays: 0 Absent: 1 (Duggan) NEW AND UNFINISHED BUSINESS A) RESOLUTION 2017-39 — DENYING THE REQUEST OF A ZONING CODE AMENDMENT TO ALLOW MOTOR FUEL SERVICE STATIONS AS A PLACE OF SALE OR RESALE OF NEW OR USED MOTOR VEHICLES, PLANNING CASE 2017-OS Community Development Director Tim Benetti explained that Mr. Sean Hoffmann is the proprietor of the BP-Mendota Heights Auto Service station, located at 2030 Dodd Road. Mr. Hoffmann came with a request to amend the City Code that currently does not allow motor fuel stations and convenience stores page 6 as places to be used for the sale/resale of vehicles. Under Title 12-1F-4, limited auto sales are permitted only in the B-3 District. Staff researched the surrounding communities and found that there are not many cities in the metro that allow this either as a permitted accessory use or a permitted use. Councilmember Petschel asked if this use would be allowed at an office in the business park? Mr. Benetti replied that, based on his experience in other cities, the type of activity described is usually a wholesale or a broker-to-broker kind of sales activity. He said that any display, inventory, or storage of vehicles on a site is usually forbidden in most cities; unless they are specifically targeted for a certain district. Mr. Sean Hoffmann, 711 Woodridge Drive, stated he would like to get the car dealers license as a service to his customers. The license has to be approved by the City. He would also inspect the vehicle on his site. He stated he does not want to display any vehicles or have any `for sale'. Councilmember Petschel noted a question that was raised at the Planning Commission meeting about a variance for this request. Planner Benetti replied that under the current ordinance, service stations and convenience stores are allowed as a Conditional Use Permit in the respective zoning districts. Planning Commissioner Mr. Roston stated that there is a fine line between granting a use variance for this type of activity under a variance process. He suggested that it not be tried as it would be easier to amend the code and make the allowance fair to everyone — not just site specific. Commissioner Paper stated that he understood what Mr. Hoffmann was trying to do as a community service, however, the amendment would allow this use for others. Councilmember Petschel asked Mr. Hoffmann if he has thought of other ways to obtain his license. Mr. Hoffmann replied that, per state law, it has to be approved by the city for that particular zoning district. Councilmember Petschel then asked if had thought of another place where he could meet the zoning requirements. Mr. Hoffmann said he wanted to have this at the property they already own and has not considered any other alternatives. Mr. Hoffmann asked for suggestions from the Council. Councilmember Petschel recommended he search out other alternatives or other locations. The Council could table this application until a different circumstance or location could be found that would qualify. City Attorney Tom Lehmann noted that the City is under the 60 day rule from the date of the application, unless it was to be extended by the applicant. Mr. Hoffmann agreed. Councilmember Petschel moved to table RESOLUTION 2017-39 DENYING A PROPOSED ZONING CODE AMENDMENT TO ALLOW MOTOR FUEL SERVICE STATIONS AS A PLACE OF SALE OR RESALE OF NEW OR USED MOTOR VEHICLES with Mr. Hoffmann's approval to waive of the 60-day rule. Mayor Garlock seconded the motion. Ayes: 4 Nays: 0 Absent: 1 (Duggan) page 7 B) RESOLUTION 2017-40 — APPROVE LOT LINE ADJUSTMENT FOR DODGE NATURE CENTER, 656 HIGHWAY 110, PLANNING CASE 2017-06 Community Development Director Tim Benetti explained this request from the Dodge Nature Center. They are looking for a lot line adjustment to a parcel that is currently part of the Dodge Nature Center. They intend to readjust the lot line for the Mendota-Lebanon Hills Regional Greenway Trail. This is part of a trail connector leading from the new tunnel system underneath Highway 110. For any lot line adjustment, it is requested by the lot owner. City Attorney Tom Lehmann stated this lot line adjustment is an appropriate use for this area. The 6.53-acre parcel would not affect the remaining 45.5-acre parcel or the adjacent property. Councilmember Petschel noted that, in the past, there has been a very close relationship between Dakota County and the Dodge Nature Center, particularly on this piece of property. Councilmember Petschel moved to adopt RESOLUTION 2017-40 APPROVING A LOT LINE ADJUSTMENT FOR DODGE NATURE CENTER, LOCATED AT 656 HIGHWAY 110. Mayor Garlock seconded the motion. Ayes: 4 Nays: 0 Absent: 1 (Duggan) C) RESOLUTION 2017-41 — APPROVING A CONDITIONAL USE PERMIT AND VARIANCE TO ALLOW LARGER GARAGE WITH REDUCED SETBACKS, 1023 DELAWARE AVENUE, PLANNING CASE 2017-07 Community Development Director Tim Benetti explained that this application was for a Conditional Use Permit and a Variance to allow for the reconstruction of an 812 square foot garage with reduced setbacks. The current home is a single-family, 1.5 story house with a detached 18 x 22 garage. The setback is currently 12.5 feet from the rear property line. Mr. Benetti shared a photo of the property, noting that the driveway comes about halfway to the backside of the garage. There is also a hard surface pad on the side that is approximately 2 to 3 feet from the property line. The intent is to match the alignment of the current driveway, which would necessitate a 3-foot setback along the side yard. They would maintain a 10-foot setback on the rear property line. Mr. Benetti explained the requirements that made it necessary to request the Conditional Use Permit and the Variance, noting that the standards for approval would be met. Mayor Garlock moved to adopt RESOLUTION 2017-41 APPROVING A CONDITIONAL USE PERMIT AND VARIANCE TO ALLOW LARGER GARAGE WITH REDUCED SETBACKS AT 1023 DELAWARE AVENUE. Councilmember Paper seconded the motion. Ayes: 4 Nays: 0 Absent: 1 (Duggan) page 8 D) RESOLUTION 2017-42 — APPROVING VARIANCE TO ALLOW REDUCED FRONT (CORNER) YARD SETBACKS FOR GARAGE AND DWELLING ADDITION, 1897 WACHTLER AVENUE, PLANNING CASE 2017-09 Community Development Director Tim Benetti explained that Ben & Erika Christopherson are looking to build an addition to the back of their home and to the side of their garage; they are requesting a variance to a side-yard setback from 30 feet down to 16.9 feet. This property is a corner lot with three frontages, requiring a 30 foot setback along each. They currently have an existing 1,546 square foot single family residential home and an existing 440 square foot two- car garage. They would like to add approximately 1,450 square feet of new building space to the existing home, and approximately 558 square feet to the existing garage, making it a 3-car garage. Mr. Benetti pointed out the frontage along Wachtler and the slight frontage along Hilltop. The frontage along Hilltop is what is necessitating the variance request. The subject parcel is well over an acre in size, and the existing home is well set back by approximately 60 feet. There is a parking pad on the site that is well within the property lines. Mr. Benetti then shared a photo of the subj ect parcel with the existing buildings and an outline of the proposed construction. He also indicated the teardrop shaped park land nearby which would lessen the impact from the roadway. The setbacks would go from 16.9 feet, creating a 13.1 foot variance. However, with the addition of the park land it becomes a 22.5-foot to a 30.9-foot setback point, creating a 7.5-foot variance. Councilmember Miller moved to adopt RESOLUTION 2017-42 APPROVING A VARIANCE TO ALLOW REDUCED SETBACKS FROM FRONT (CORNER) YARD SETBACKS, 1897 WACHTLER AVENUE. Councilmember Paper seconded the motion. Ayes: 4 Nays: 0 Absent: 1 (Duggan) E) RESOLUTION 2017-43 — APPROVING AMENDMENT TO THE COMPREHENSIVE PLAN TO RE-GUIDE FUTURE LAND USE FROM EXISTING `B — BUSINESS" TO "HR-PUD HIGH DENSITY RESIDENTIAL-PLANNED UNIT DEVELOPMENT" DESIGNATION 2180 AND 2160-64 HIGHWAY 13, PLANNINGB CASE 2017-08 Community Development Director Tim Benetti explained this request from Michael Development, who is seeking to develop two, 69-unit apartment buildings at 2180 and 2160-64 Highway 13. The subject property is a combined 5.5-acre site. This is just the first step of a multi-layered process to redevelop this property. All of the existing structures would be removed from the site to make room for this development. If approved, the phasing of this project would begin on the Mendota Motel site, and Phase 2 would be the redevelopment of the Larsen Garden Center site. page 9 The request under consideration is to change the underlying Comprehensive Plan language and is not an approval of any zoning changes or development plan. Mr. Swenson will need to return to the Planning Commission and the City Council for a rezoning, a re-plat, and a development plan approval; which would be coming up within the next few months. The current land use is `B — Business" and the request is to modify that to "HR-PUD High Density Residential-Planned Unit Development". The applicant is proposing two, 69-unit apartment buildings at market rates, underbuilding parking areas, with surface parking. Approximately 2.3-acres of the site would be developed with the remaining 32-acres would be left as green space. The apartment buildings would employ approximately 3-4 full-time people. Staff analysis on the Larsen property, supported by the City's TIF consultants, indicated that this site, in its current general disrepair, could not be easily repurposed for a similar facility. The site was marketed as potential commercial development but no viable business plans have ever developed. The initial assessment indicated that the site may need extensive environmental cleanup and demolition. The applicant has indicated that this project would be primarily financed through a private local bank, and it would be at his own cost to clear the properties and develop them. However, if the TIF district is approved on June 20rh, that funding source would assist in the development and redevelopment costs that are eligible under that TIF agreement. Councilmember Paper moved to adopt RESOLUTION 2017-43 APPROVING AN AMENDMENT TO THE COMPREHENSIVE PLAN TO RE-GUIDE FUTURE LAND USE FROM EXISTING `B - BUSINESS" TO "HR-PUD HIGH DENSITY RESIDENTIAL-PLANNED UNIT DEVELOPMENT" DESIGNATION FOR PROPERTIES LOCATED AT 2180 AND 2160-64 HWY. 13. Councilmember Petschel seconded the motion. Ayes: 4 Nays: 0 Absent: 1 (Duggan) F) ORDINANCE NO. 510 — AMENDING TITLE 12, CHAPTER l, ARTICLE B, RULES AND DEFINITIONS CONCERNING NEW SIGN DEFINITIONS AND TITLE 12, CHAPTER l, ARTICLE D, GENERAL ZONING PROVISIONS CONCERNING CERTAIN TYPES OF SIGNS IN THE BUSINESS DISTRICTS Community Development Director Tim Benetti explained that this request is a code amendment to allow for free-standing monument signs in the B-1 Limited Business and B-lA Business Park Districts. Some of the businesses within the City already have some type of free-standing or monument-style signs. Mr. Benetti shared the proposed changes to the Code and explained the reasoning behind each. Councilmember Petschel commented that, regardless of the fact whether it is a monument or pylon sign, it makes no difference because they are all the same height, width, and sign coverage. Mayor Garlock noted that the new language is easier to understand. page 10 Councilmember Petschel moved to adopt ORDINANCE NO. 510 — AMENDING TITLE 12, CHAPTER l, ARTICLE B. RULES AND DEFINITIONS CONCERNING NEW SIGN DEFINITIONS AND TITLE 12, CHAPTER l, ARTICLE D. GENERAL ZONING PROVISIONS CONCERNING CERTAIN TYPES OF SIGNS IN THE BUSINESS DISTRICTS. Councilmember Miller seconded the motion. Ayes: 4 Nays: 0 Absent: 1 (Duggan) G) AWARD CONTRACT FOR COMPLETION OF A CLASSIFICATION AND COMPENSATION STUDY FOR NON-CONTRACT CITY EMPLOYEES Assistant City Administrator Cheryl Jacobson explained that the City had received six proposals from qualified firms to complete a Classification and Compensation Study for the City's non-union positions. The RFP's scope of services included a review of current non-union job descriptions and classification, the establishment of a job evaluation system, an internal pay equity review as well as a market competitiveness, and the completion of a 2018 pay equity report. City Administrator Mark McNeill and Assistant City Administrator Cheryl Jacobson reviewed the responses using the criteria established in the RFP. Staff recommended the selection of Springsted Incorporated, as it is well qualified to complete the services, has a proven evaluation method that has been approved by the State of Minnesota, currently serves as the classification consultant for several municipalities throughout Minnesota, and has provided similar services to the City in the past. Springsted has proposed a not-to-exceed amount of $12,600 to complete the study, which is within the 2017 budgeted amount of $15,000. If approved, work would begin immediately and be completed by October l, 2017. This would allow time to make any pay equity requirement adjustments and complete the January 2018 pay equity report. Councilmember Paper moved to award the contract to Springsted, Incorporated for the completion of a Classification and Compensation Study. Councilmember Petschel seconded the motion. Ayes: 4 Nays: 0 Absent: 1 (Duggan) H) AUTHORIZE RELEASE OF REQUEST FOR QUOTES FOR FIBER OPTIC INSTALLATION TO MUNICIPAL BUILDINGS Assistant City Administrator Cheryl Jacobson explained that staff is requesting authorization to release a Request for Quotes (RFQs) for the installation of conduit and fiber optic cable to City Hall, the Fire Department building, and the Public Works building. LOGIS, the City's information technology provider, has come up with three separate RFQs to have the conduit and fiber optic installed at the three buildings. Staff has also been working with Dakota County page 11 on a larger broadband project regarding the timing, project management, and cost financing of installation of fiber. Ms. Jacobson shared an image of a map showing where the fiber optic network had already been installed. The City Hall building has been part of a larger county-wide `gap project' for Dakota County fiber network, or the Institutional Network (I-Net). Dakota County, in partnership with Dakota County cities and the Dakota County CDA, continues to work towards the development of a Joint Powers Agreement which would link designated public facilities with high speed data infrastructure and broadband capabilities as well as coordinated administration of the network. The RFQ that LOGIS has put together focuses on the Mendota Heights gap and lays out three engineering quotes: L To extend fiber from the Public Works Building, along Lexington Avenue, to City Hall 2. To the Public Works Building 3. To the Fire Department Staff would continue to work with Dakota County to determine a cost sharing for the installation of the fiber. Councilmember Petschel asked for an explanation of how the fiber would make the City more productive. Assistant Administrator Jacobson replied the fiber would increase productivity, would provide the bandwidth in order to go to virtual servers that could be located at LOGIS; improving back- up capabilities, improving the security of the network, provide the opportunity to upgrade the telephone system to new technology, and increase the speed for uploading and downloading information. Councilmember Petschel asked for confirmation that LOGIS is involved with the communication center in Dakota County. Assistant Administrator Jacobson confirmed and stated that in the discussions with Dakota County, staff has also talked about the fact that this might be a good test for the relationship between LOGIS and Dakota County — to handle larger Dakota County fiber proj ects. Councilmember Petschel asked if there would be any relationship between this I-Net and the GNet. Assistant Administrator Jacobson replied that it would be the same, but different. If the City were to install fiber now they would install fiber for both the I-Net and the GNet; it would just be a matter of how many fiber strands they dedicate to each one. Mayor Garlock indicated that he has worked with LOGIS for many years and every recommendation they have made has been something that was needed. Councilmember Petschel moved to authorize LOGIS to be the project manager for the City and to authorize the release of the Request for Quotes for the installation of conduit and fiber optic cable to City Hall, the Fire Department building, and the Public Works building for purposes of connecting to Dakota County fiber. Mayor Garlock seconded the motion. Ayes: 4 Nays: 0 Absent: 1 (Duggan) page 12 I) RESOLUTION 2017-45 — AUTHORIZE SUBMITTAL OF A REQUEST TO THE STATE OF MN FOR PARTICIPATION IN THE FUNDING OF THE RECONSTRUCTION OF PORTIONS OF FORMER MNDOT ROADWAYS IN THE CITY OF MENDOTA HEIGHTS In response to a recommendation from the City's State legislative delegation that Mendota Heights request State bonding money, City Administrator Mark McNeill and Public Works Director Ryan Ruzek have been working to identify streets that need reconstruction and would qualify for state assistance to complete the project. They found five streets or street segments that, at one time, were state highways and were turned back to the City beginning in the early 1990's. These streets are in a condition now where they need to be renovated, resurfaced, or reconstructed. The problem is that half of the property the City would normally be assessing is state-owned, making it difficult for the City since the state traditionally has not paid assessments for improvements. The streets proposed for assistance include Center Point Curve, Carmen Lane, Crown Point Drive, Dakota Drive, Waters Drive, and Victoria Curve. These areas, located within Mendota Heights, have needs that are over two miles in length. The request would be for the state to pick up half of the cost of approximately $3.SM, or approximately $1.6M. Staff also identified about 700 feet that are actually within the City of Mendota, and has prepared a resolution for the City of Mendota to act upon, which would add another $85K. The deadline for applying is June 15, 2017, which is a very short timeframe. It is possible that staff may find that there are some ancillary changes needed to the proposed resolution. To this and, with the Council's approval and if these items are within the spirit of the application, Mr. McNeill asked that staff be allowed to amend the document at the staff level, which would then be brought back to the Council for affirmation at a later time. Councilmember Miller moved to adopt RESOLUTION 2017-45 - AUTHORIZE THE SUBMITTAL OF A REQUEST TO THE STATE OF MINNESOTA FOR PARTICIPATION IN THE FUNDING OF THE RECONSTRUCTION OF PORTIONS OF FORMER MNDOT ROADWAYS IN THE CITY OF MENDOTA HEIGHTS and that any ancillary changes that are needed, be done and reported to the Council at a later date. Mayor Garlock seconded the motion. Ayes: 4 Nays: 0 Absent: 1 (Duggan) COMMUNITY ANNOUNCEMENTS City Administrator Mark McNeill announced that residents are asked to consider volunteering to plant pollinator-friendly plantings outside of City Hall. Two master gardeners will be on-site to answer questions, show techniques, and provide hands-on experience. Councilmember Petschel asked that this information be provided to the residents at the CDA at The Plaza, as they have expressed an interest. page 13 COUNCIL COMMENTS Mayor Garlock noted the outstanding Parks Celebration had over the weekend. He commended Recreation Program Coordinator Sloan Wallgren for all of his hard work putting this together; including all of the staff, police, fire, and volunteers. He noted that the SK had raised over $llK for Special Olympics. Councilmember Petschel expressed her appreciation to Mayor Garlock for his work on the SK. She said that the City is developing a metro-wide reputation for having the best and most prizes following a SK. Councilmember Miller also expressed his appreciation to Mayor Garlock for the work done on the SK. He also stated that it is construction season and urged everyone to drive safely and cautiously. Councilmember Paper sent congratulations to the local graduates. He also congratulated the St. Thomas Academy Experimental Vehicle Team which had recently won the Shell Drivers World Championship. He expressed good luck to the St. Thomas Academy Baseball Team at the state tournament. He echoed the comments and expressions of appreciation to Mr. Wallgren for the celebration event, in conjunction with the Mendota Heights Athletic Association in-house tournament. He congratulated Mayor Garlock for the growing success of the Scott Patrick Memorial SK, noting that it had more than 400 participants this past weekend. ADJOURN Councilmember Petschel moved to adjourn. Councilmember Paper seconded the motion. Ayes: 4 Nays: 0 Absent: 1 (Duggan) Mayor Garlock adjourned the meeting at 8:30 p.m. Neil Garlock Mayor ATTEST: Lorri Smith City Clerk CITY OF MENDOTA HEIGHTS page 14 DAKOTA COUNTY Sb. STATE OF MINNESOTA Minutes of the Council Work Session Tuesday, June 6, 2017 Pursuant to due call and notice thereof, a work session of the Mendota Heights City Council was held at City Hall, 1101 Victoria Curve, Mendota Heights, Minnesota. CALL TO ORDER Mayor Garlock called the meeting to order at 6:00 p.m. Councilmembers Miller, Paper and Petschel were also present. Councilmember Duggan was absent. Staff in attendance included City Administrator Mark McNeill, Public Works Director Ryan Ruzek, Community Development Director Tim Benetti, and City Clerk Lorri Smith. MUNICIPAL CONSENT FOR DODD ROAD - MNDOT Molly Kline and Dale Gade, representatives from MnDOT, were present to discuss the Dodd Road improvement proj ect, which is scheduled to be completed in 2018. Ryan Ruzek gave the Council details of the improvement project. It was noted that MnDOT is working on replacing any prescriptive easements located within the project area with permanent easements. The intersection of Wagon Wheel, Decorah, and Dodd Road was reviewed. It was noted that an island will be placed in the center to direct traffic through the off-set intersection. Traffic issues on Dodd Road were discussed. Dale Gade suggested the City consider the traffic congestion program through MnDOT. This program is targeted for proj ects that would provide traffic management benefits to the community. MnDOT officials provided background information on the "Municipal Consent" process. This item will be placed on the June 20th Council meeting agenda. DISCUSSION OF STATE FIRE CODE AMENDMENTS Fire Chief Dave Dreelan and Fire Inspector Jim Lee presented the Council with the appendix changes to the State Fire Code. These changes will be considered for adoption by the City CounciL The Councilmembers were in agreement with the recommended changes. These will be placed on an upcoming Council agenda for formal consideration and adoption. ADJOURN Mayor Garlock adjourned the meeting at 6:53 p.m. Neil Garlock, Mayor ATTEST: Lorri Smith, City Clerk page 15 i1C1 victer a ���rve Ne��d� Sc. 65t�152'�8�0 phone �514�; �����.;�,' `-, wv�w�merdcta heiqh;scom � � � � CITY OF I`/IEN��TA HEI�HTS DATE: June 20, 2017 TO: Mayor, Council and City Administrator FROM: Kelly McCarthy, Chief of Police SUBJECT: Resolution 2017-46 renewing Agreements with ISD 197 for the provision of a School Resource Officer INTRODUCTION The Council is asked to approve agreements with ISD 197, for the provision of a School Resource Officer. BACKGROUND Since 2004, a contract has been in place for the City of Mendota Heights to provide a School Resource Officer (SRO) to serve ISD 197. Some minor changes to the contract have occurred since the original 2004 contract was signed, as the contract has served both parties well. The School District is billed for actual expenses only which are incurred by the City. The SRO is assigned to normal patrol duties during the summer months. There is also a need to renew a Memorandum of Understanding (MOU), which details the working relationships. That has received some minor changes since its inception, all of which reflect the positive outcomes and goals the school district, the SRO, and the police departments seek to accomplish. BUDGET IMPACT This is a budgeted item. RECOMMENDATION I recommend the Resolution be approved, which approves the Contract for Services for the SRO, and the MOU, which outlines the specific responsibilities. ACTION REQUIRED: If Council desires to implement the recommendation, it should, adopt the following Resolution 2017-46: A RESOLUTION RENEWING A CONTRACT FOR SERVICE AND A MEMORANDUM OF UNDERSTANDING FOR THE PROVISION OF A SCHOOL RESOURCE OFFICER WITH ISD 197 page 16 City of Mendota Heights Dakota County, Minnesota RESOLUTION 2017-46 A RESOLUTION RENEWING A CONTRACT FOR SERVICE AND A MEMORANDUM OF UNDERSTANDING FOR THE PROVISION OF A SCHOOL RESOURCE OFFICER WITH ISD 197 WHEREAS, the City of Mendota Heights has provided a School Resource Officer (SRO) to ISD 197 since the 2004-OS school year and is agreeable to doing so in the future; and WHEREAS, the previous contract is in need of renewal; and, WHEREAS, the contract for service charges fees for the actual services provided; and WHEREAS, a Memorandum of Understanding has been provided, and updated which details the working relationships and goals of the SRO program; and WHEREAS, the City and ISD 197 understand the responsibilities vested in it to provide for the health, safety and welfare of staff and students; and WHEREAS, the City Council of the City of Mendota Heights has duly considered this matter and desires to maintain this contractual agreement, thereby providing for the safety and security of the staff and students of ISD 197. NOW, THEREFORE, BE IT RESOLVED by the City Council of Mendota Heights, Minnesota that it renews a Contract with ISD 197 for the provision of a School Resource Officer, and approves a Memorandum of Understanding, outlining the responsibilities of the parties involved. Adopted by the City Council of the City of Mendota Heights the 20th day of June, 2017. CITY COUNCIL CITY OF MENDOTA HEIGHTS Neil Garlock, Mayor ATTEST: Lorri Smith, City Clerk page 17 School Resource Ofiicer Contract for Service This School Resource Officer Contract for Service (the "Agreement") dated this day of 2017, is made pursuant to Minnesota Statute 471.59, by and between the City of Mendota Heights ("City") and Independent School District 197, West St. Paul/Mendota Heights/Eagan Area Schools ("School District"). 1. Purpose The City and School District wish to participate in a School Resource Officer (SRO) Program (the "Program") between the City of Mendota Heights Police Department and Independent School District 197. Both the City and School District feel that this more formalized approach to the School Liaison Officer Program is needed to improve understanding and promote mutual respect between police, school, staff, counselors, parents, and students. The purpose of this agreement is to set forth, in writing, the terms and conditions, to create, fund, and implement the position of SRO. 2. Funding The School District will fund the following expenses in connection with the hiring of any SRO: A. Officer's salary B. Officer's related benefits, including, but not limited to, sick time, vacation and disability pay C. Training set at a flat rate of $1,200 year D. Equipment (police equipment and squad) costs set at a flat rate of $4,500 per year Future years will reflect a similar formula or a negotiated figure agreed to by both parties. In the event the School District or the City should receive a grant or special funding to offset the costs of this Program, the amount billed to the School District will reflect the alternative funding and will result in the cost to the School District being adjusted accordingly. 3. Services The City shall provide the services of a police officer or officers and related support services and supplies to assist the School District in establishing and maintaining the Program at the assigned school(s). The SRO will have the duties as described on a separate MOU between the City and the School District and attached hereto and made a part hereof as Appendix A. The School District agrees to provide adequate office space, telephone, cell phone, computer and printer which are necessary for the SRO to provide the services. page 18 4. Payment The City shall provide billing to the School District for services on a semi-annual basis, July 1 and January 1. Invoices will be due and payable by the School District no more than thirty (30) days after receipt of the same. 5. Term This a�reement shall commence on the lsr day of September, 2017, and shall end on the 30r day of June, 202L Therefore, the agreement may be renewed for an additional two year period as agreed to by both parties. 6. Independent Contractor The City, through its Chief of Police, will remain free to exercise judgment and professional expertise in determining how to best provide the services described in this Agreement. The City acknowledges that no withholding for state or federal benefits or taxes will be made from the payments due the City by the School District. The City also acknowledges that it has sole obligation to comply with state, local and federal tax provisions with regard to these services and the independent contractors hired by the City to perform the Services. The City and any officer who performs services for the School District agree that the officer shall not accrue any continuing contract rights and the officer specifically waives any right to a continuing contract. The City agrees that if the officer makes any employment claim or brings any employment action of any kind, the City will be solely responsible for the defense and payment of any claim as the officer is not an employee of the School District. 7. Scheduling The duty hours of the SRO are flexible and will be primarily coordinated with the school day and/or activities during the normal school year. The SRO officer will make daily contact with the police department for the purpose of keeping abreast of incident reports and other city activities. During non-school periods, such as summer break, the SRO's duties and schedule will be determined by the Chief of Police and the school district is not billed for that time. 8. Termination of this Agreement This Independent Contract will run through June 30, 2021, but the costs associated with the Program shall be reviewed annually by both parties. Notwithstanding the four (4) year term of the contract, either party may terminate the Agreement by providing written notice to the other party no less than six (6) months prior to the planned termination date. page 19 9. Temporary Emergency Reassignment The School District acknowledges that the SRO may be occasionally called upon to respond to emergencies within the community. If, in the discretion of the Chief of Police, it becomes necessary to remove the SRO from the district for more than periodic assistance to respond to emergency calls, the Chief will inform the school district officials in advance of his/her action. Should the liaison officer be removed from his/her duties in the school district, the school district will not pay for the officer's salary or benefits during that absence. 10. Security/Linking The SRO office will be locked and secured by a key issued only to the SRO. The SRO (s) will be provided a suitable computer, monitor and printer and any other items or services necessary, at the expense of the School District, so that the SRO will have full access to the Mendota Heights Police Department email system and ISD 197's email and network system at all times the SRO is working pursuant to this Agreement. 1L Indemniiication Each party is responsible for its own actions. Both parties' liability shall be limited by applicable law and nothing in this Agreement shall be interpreted in any way that reduces or limits either party's statutory protections or liability limits. 12. Amendments This Agreement contains all the full understanding and agreements between the parties and may not be amended except in writing agreed to and executed by both parties. If any provision of this agreement is found invalid by a court or agency, it shall not invalidate any remaining provisions. 13. Data Practices Sharing of data will be done only pursuant to the Minnesota Data Practices Act and the Family Educational Rights of Privacy Act. Any data shared between the two parties to this agreement will be maintained in the accordance with all applicable state and federal law. Because the City and the officer(s) are not employees of the School District, any violation of the state or federal law in this regard is the sole responsibility of the City and the officer and each agrees to hold the School District harmless if a claim or action arises because of the City's actions or omissions. 14. Discrimination page 20 The City and School District agree not to discriminate in providing services under this agreement on the basis of race, sex, creed, national origin, age, or religion. The parties agree not to discriminate as required by any and all applicable state and federal laws. 15. Interpretation This Agreement shall not be construed more strictly against one party than against the other merely by virtue of the fact that it may have been prepared by counsel for one of the parties, it being recognized that both the City and the School District have contributed substantially and materially to the preparation of this Agreement. 16. Construction The headings of the sections and subsections of this Agreement are for convenience and reference only and do not form a part hereof, and in no way interpret or construe such sections and subsections. Wherever the context requires or permits, the singular shall include the plural, the plural shall include the singular and the masculine, feminine and neuter shall be freely interchangeable. 17. Parties in Interest This Agreement shall be binding upon and inure to the benefit of the parties' respective heirs, representatives, successors, and assigns. This Agreement is for the sole benefit of the City and the School District and no third party is intended to be a beneficiary of or have the right to enforce this Agreement. 18. Attorneys' Fees In the event of litigation between the parties in connection with this Agreement, the prevailing party (i.e. the party whose position is substantially upheld by the court) shall be entitled to recover its reasonable attorneys' fees and costs from the non- prevailing party. The obligation in the immediately preceding sentence shall survive the expiration or earlier termination of this Agreement. 19. Definitions If any date herein set forth for the performance of any obligations by the parties or for the delivery of any instrument or notice as herein provided should be on a Saturday, Sunday or legal holiday, the compliance with such obligations or delivery shall be deemed acceptable on the next business day following such Saturday, Sunday or legal holiday. As used in this Section, the term "legal holiday" means any state or Federal holiday for which financial institutions or post offices are generally closed in the State of Minnesota. The term "including" shall mean including, as an example, without limiting the generality of the foregoing. 20. Counterparts page 21 This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same document. A signature page to any counterpart may be detached from such counterpart without impairing the legal effect of the signatures thereon and thereafter attached to another counterpart identical thereto except having attached to it additional signature pages. 21. Governing Law This Agreement shall be construed as to both validity and performance and enforced in accordance with and governed by the laws of the State of Minnesota. 22. Headings The headings contained herein are for convenience of reference only and do not affect, define, describe or limit the scope or intent of this Agreement or any of its provisions. Mayor, City of Mendota Heights Date City Clerk Chair, Board of Education ISD 197 Date Board of Education Clerk Date Date page 22 Memorandum of Understanding (MOU) ISD 197 and Mendota Heights Police Department RE: School Resource Officer (SRO) is a Police Officer provided under contract to ISD 197. Reports to Administrative Sergeant and Chief of Police and works directly with school staff. Job Duties The SRO will work towards carrying out the mission of the Mendota Heights Police Department within the school community. The SRO will act in his/her capacity and authority as a Police Officer for the City of Mendota Heights to provide a safe learning environment, to prevent crime, and to investigate and solve crimes. Additionally the SRO will: - Follow all policies and procedures of the Mendota Heights Police Department (MHPD). - Follow the MHPD chain of command. - Work closely with the school administration and staff. - Work with building facilities personnel on issues related to building security. - Refer school disciplinary actions to school administration. - Work closely with school staff to identify pre-delinquent youth (at risk) and will assist in targeting the appropriate resources necessary to prevent delinquent acts. - Work closely with school administration in planning emergency preparedness and exercises (i.e. lockdown procedures, security plan review, etc.). - Serve as a conduit of information between students, staff, parents and Dakota County Social Services, and court agencies. - Attend regular meetings of staff, police, Dakota County Criminal Justice officials (probation, 360 Communities, county attorney) Dakota County Social Services staff and other staff deemed necessary to enrich the learning environment or increase the safety of the schools. page 23 - Will work with School District personnel and Dakota County officials on truancy issues. - Complete appropriate police reports, according to policy and provide a detail of daily activities. - Meet with parents and educators (staf� as necessary to facilitate conflict resolution within the school. - Be notified when crisis response has been activated by the school on any problem or notifies school administration when crisis response is needed. - Develop and monitor a working knowledge of all students within the school setting. - Intervene and take appropriate legal action when the welfare of school staff, students, etc. may be in danger. - Provide education programs as requested. - Provide in-service education as requested. - Work at promoting a positive image of ISD 197. - Meet regularly with other SRO's in Dakota County. - Stay current in industry trends and requirements. - Know resources and contacts in Dakota County Criminal Justice System. Position Rec�uirements The SRO will have at least 24 months of service to the Mendota Heights Police Department or possess special skills/training related to working with juveniles. Additionally, the SRO will: - Maintain regular communication with school and the Dakota County Communication Center. - Wear uniform and/or plain clothes as the situation at the school dictates. - Continually work to improve knowledge related to juvenile justice issues. - Be reassigned as needed by the department when not under contract. page 24 - Continue to attend POST courses as needed to maintain license (will notify school in advance of absences). - Will respond to emergencies as needed outside of school. - Will work with staff at all ISD 197 schools. Reviewed and agreed upon , 2017. Kelly McCarthy Chief of Police Dr. Nancy Allen-Mastro Superintendent page 25 Sd. C�i I� ��� Nn:> ie �,�1 45� 6� �,; -ax- . wv�w�merdcta heiqh;scom� � ' �_ � CITY OF I`/IEN��TA HEI�HTS DATE: June 20, 2017 TO: Mayor and City Council FROM: Mark McNeill, City Administrator SUBJECT: Appointments to Traffic Safety Committee COMMENT: INTRODUCTION The Council is asked to consider the appointment of Jonathan Ehrlich and the City Administrator to ex-officio members of the Traffic Safety Committee (TSC). BACKGROUND Currently, the Traffic Safety Committee is made up of one member of the City Council, one member of the Planning Commission, and staff—the Police Chief, Fire Chief, and Public Works Director. The City Administrator participates as a non-voting member. The TSC recently began to meet again after a hiatus of a couple of years. One of the additional needs for the TSC is for someone who can add specific knowledge about traffic engineering techniques and practices. The likely option for that was thought to be to have one of the employees of the City's consulting engineering companies sit in with the committee, to advise the committee about technical issues. That, of course, would result in hourly charges to the City. An alternative which we had not anticipated was that a qualified local resident could be found. One such individual is Jonathan Ehrlich. Mr. Ehrlich introduced himself to the Police Chief when he asked about a traffic issue at a neighborhood Crime prevention meeting. He is a 17 year Mendota Heights resident, a certified traffic engineer, and is currently employed as a Transportation Planner for the Metropolitan Council. He and I have spoken about his possible appointment to the TSC, and it is apparent that he is well qualified in traffic engineering. He states that he has a particular interest in pedestrian safety. He indicates that he would be available to serve on the Committee, insofar as his work schedule allows. Going forward, the TRC is preparing to meet quarterly, which will likely be on the second Monday of each of January, April, July, and October. It can also meet more often if needed. That meets with Mr. Ehrlich's schedule. page 26 It is recommended that Mr. Ehrlich be appointed to be an "ex-officio" (non-voting) member. He would still be able to participate in all discussions, but he would just not vote. As the TSC members are appointed annually, it is likewise recommended that he be appointed to serve for the remainder of 2017. Then, if he desires to continue, he could be considered for an additional service appointment next year. The City Administrator should also be officially appointed as an ex-officio member. In looking at the official makeup of the TSC, the City Administrator has not been an appointee, although I have participated in the TSC since my arrival in Mendota Heights. BUDGET IMPACT None. RECOMMENDATION I recommend that Jonathan Ehrlich, and the City Administrator be appointed as ex-officio members of the TSC. ACTION REQUIRED If the Council concurs, it should, by motion, approve the appointments of Jonathan Ehrlich and the City Administrator as an ex-officio members of the Mendota Heights Traffic Safety Committee, for the remainder of 2017. This would become effective July lsr Mark McNeill City Administrator � ' �_ � CITY OF I`/IEN��TA HEI�HTS DATE: June 20, 2017 TO: Mayor and City Council FROM: Dave Dreelan, Fire Chief Jim Lee, Fire Marshal page 27 Se. C�i I � ���Nn:>ie �,�145�6��,;-ax.. wv�w�merdcta heiqh;scom� SUBJECT: Amendment to Fire Code Changes COMMENT: INTRODUCTION The Council is asked to amend the City Code to incorporate recent changes to the State Fire Code. BACKGROUND Several provisions in appendices of the Minnesota State Fire Code were changed in 2015. In order for the City Fire Code to be consistent with the State Code, the amendments must be approved by the City Council. At a workshop meeting on June 6th, we discussed with the Council several recommended changes. We also reviewed other potential State Code changes which are not being recommended for incorporation into the Mendota Heights Code, due to cost or practicality reasons. The Appendices which we recommend for approval are as follows: Appendix E Hazardous Materials Appendix F Hazard Rankings Appendix G Cryogenic Fluids-Weight and T�olume Equivalents Appendix H Hazardous Materials Management Plan Appendix I Fire Protection-Non-Compliant Conditions A summary of the proposed changes is attached. page 28 RECOMMENDATION We recommend the changes shown on the attached summary sheet. ACTION REQUIRED If the Council concurs, it should adopt Ordinance No. 512: AMENDING TITLE 7, CHAPTER 2, OF THE MENDOTA HEIGHTS CITY CODE REGARDING THE FIIZE CODE APPENDICES page 29 CITY OF MENDOTA HEIGHTS DAKOTA COUNTY, MINNESOTA ORDINANCE NO. 512 AMENDING TITLE 7, CHAPTER 2, OF THE MENDOTA HEIGHTS CITY CODE REGARDING THE FIRE CODE APPENDICES The City Council of the City of Mendota Heights, Minnesota, does hereby ordain: Section 1. City Code Title 7— FIRE REGULATIONS is hereby amended as follows: Title 7.2 is hereby amended by adding the underlined material and deleting the �rmaterial as follows: 7-2-1: CODE ADOPTED: A_The Minnesota State Fire Code 2015 edition is hereby adopted as the code of the City of Mendota Heights in the State of Minnesota. It regulates and governs the safeguarding of life and property from fire and explosion hazards arising from the storage, handling, and use of hazardous substances, materials and devices; from conditions hazardous to life or property in the occupancy of buildings and premises in the City of Mendota Heights as herein provided. Each and all of the regulations, provisions, conditions and terms of the adopted Fire Code on file in the office of the Fire Marshal are hereby referred to, adopted, and made part hereof, as is fully set out in this chapter, with the additions, insertions, deletions, and changes in the following sections of this chapter. A copy of the Fire Code is maintained in the Office of the Fire Marshal or designee for examination and use by the public. B. The following a�endices are adopted: 1. A�erzdax E Hazardoz�s Materaals 2. Ap�erzdax F Hazard Rarzkarz,�s 3. A�erzdax G Cf;vo�erzac Flz�ads-Wea�ht arzd T�olz�me Ec�z�avalerzts 4. Ap�erzdax H Hazardoz�s Materaals Marza,�emerzt Plarz S. A�erzdax I Fare Protectaorz-Norz-Complaarzt Corzdataorzs Section 2. This ordinance shall take effect and be in full force from and after its adoption and publication. Adopted and ordained into an ordinance this 20th day of June, 2017. ATTEST Lorri Smith, City Clerk CITY COUNCIL CITY OF MENDOTA HEIGHTS Neil Garlock, Mayor page 30 2015 Minnesota State Fire Code Appendices Summarv of Recommended Chanqes Appendix E Hazard Categories This appendix provides information, explanations and examples to illustrate and clarify the hazard categories contained in Chapter 50 of the International Fire Code. The hazard categories are based upon the DOL 29 CFR. Where numerical classifications are included, they are in accordance with nationally recognized standards. Appendix F Hazard Rankings The appendix is based on application of the degrees of hazard as defined in NFPA 704 arranged by hazard class as for specific categories defined in Chapter 2 of the International Fire Code and used throughout. Appendix G Cryogenic Fluids-Weight and Volume Equivalents This appendix is used to convert from liquid to gas for cryogenic fluids. Appendix H Hazardous Materials Management Plan Provide a site plan on 81/2 by 11 inch (215 mm by 279 mm) paper, showing the locations of all buildings, structures, outdoor chemical control or storage and use areas, parking lots, internal roads, storm and sanitary sewers, wells and adjacent property uses. Indicate the approximate scale, northern direction and date the drawing was completed. Appendix I Fire Protection- Noncompliant Conditions This appendix is intended to identify conditions that can occur when fire protection systems are not properly maintained or components have been damaged. page 31 5 f. C�i I� ��� Nn:> ie �,�1 45� 6� �,; -ax- . wv�w�merdcta heiqh;scom� � ' �_ � CITY OF I`/IEN��TA HEI�HTS DATE: June 20, 2017 TO: Mayor and City Council FROM: Mark McNeill, City Administrator SUBJECT: Early Ice Arena Funding Allocation COMMENT: INTRODUCTION The City Council is asked to approve the early release of tax monies which have been levied and collected to fund improvements to the John V. Hoene Ice Arena in West St. Paul. BACKGROUND In 2015, the Mendota Heights City Council entered into an agreement with the City of West St. Paul and ISD 197 to collect money for extensive renovations to the West St. Paul ice arena. Those renovations included replacement of the ice sheet, refrigeration renovation, and parking lot and roofing repairs. Mendota Heights agreed to make two payments, and used money from a variety of sources—fund reserves, cellular tower rent revenue, and a year of a specific property tax levy--to make a$277,667 payment to WSP in 2015. Then, there would be an additional four years of levies, so that a second payment of that same amount could be made in 2019. I was recently approached by the City of WSP, asking that the money which has been collected thus far could be released early, so that some badly-needed repairs to the building's roof can be made as soon as possible. This would be only an early release of collected funds, and that the total amount of the funding expected from Mendota Heights would remain unchanged. BUDGET IMPACT Since the 2015 payment, the City has collected a single levy in the amount of $65, 212. In July, the first half of 2017 property tax payments will be received, meaning there will be an additional $32,606. If payment was approved for release at that time, it would mean $97,818 could be sent to WSP. page 32 There is minimal investment interest being earned on these collected funds. The only drawback is that payment of those monies would otherwise be reflected in the General Fund balance, meaning that the City's otherwise healthy fund balance would be slightly reduced. RECOMMENDATION Because there seems to be an urgent need for the money now, I recommend that the funds which have been accumulated for the ice arena payment in 2019 be released in July, after receipt of the first half payments. This is consistent with Sc(2) of the agreement, which calls for the second payment on or before January 15, 2019. In addition, it is recommended that the City Council approve authorizing the release of levy payments to WSP as soon as they are received in the future (twice a year), so that needed repairs can be made without having to wait. ACTION REQUIRED If the Council concurs, it should, by motion, authorize the payment of $97,818 to the City of West St. Paul upon the receipt of first half 2017 taxes payable, and further authorize the release of future levies being made for ice arena improvements, as soon as they are received from Dakota County. Mark McNeill City Administrator fy page 33 JOINT POWERS AGREEMENT FOR THE RENOVATION OF THE JOHN V. HOENE ICE ARENA Tkus ,�oint Powers Agreement ("Agreement") is between the City of West St Paul ("West St. Paul"), the City of Mendota Heights ("Mendota Heights") and Independent School District 197 ("Schooi District"), collectively refened to as the "Parties." l. GENERAL PURPOSE Under Minn. Stat. §471.59, the Parties are empowered to enter into agzeements for the joint exercise of powers with other governmental units. The 3ohn V. Hoene Ice Azena, which is located in West Sf. Paul, serves students and adult skating and hockey needs for Henry Sibley Hzgh School and other youth hockey programs. The Ice Arena is in need of upgrades, repairs; replacernent of the refrigeration sys#em and an extensive renovation in order to provide a facility that will serve the needs of the Parties fox the next 20 years. 2. TERM OF AGREEMENT The tezm. of this Agreement shall commence on November l, 2014, or the date all required signatures are obtained; whichever is later, ("Effective Date") and shali remain in full force and effect for 240 months from the Effective Date ("Ternn") unless terminated by the Parties as provided in this Agreement, whichever occurs first: 3. DEFINITIONS In this Agreement the following terms shall be defin.ed as follows unless the context requzres otherwise: 3.1. A�reement: This Agreezxzent, as it may be annended, supplemented, or resta.ted frorn time to time. 3.2. Chan�e Ordex: A written order to the Contractor approved by the Parties to this Agreement and signed by the West St. Paul Representative on behalf of the Parties authorizing a change in the work included within the Contract Documents and/or an ad�ustmeni in the price andlor an adjustrnent in the construct�on schedule, issued after execution of the contract for the . construction of the Project. 3.3. Contract Documenis: Drawings, specifications, general and special conditions, addenda, if any, Change Orders, and the construction contract for the Project, approved by the Parties, or their respective representatives. 3.4. Contractor: The person or entity that is awarded the contract for the construction of the Project. The Contractor's construction contract for the Project shall be wzih West St. Paul. page 34 � 3.5. Tce Arena: The John V. Hoene Ice Asena, located at 60 West Emezson Avenue, West St. Paul, Dakota County, Mituiesota. 3.6. Mendota Hei�hts: The City of Mendota Heights, a Minnesota municipal corporation. 3.7. Mendota Hei�hts Representative: The Mendota Heights City Administrator, or his designee. 3.8. Pxoiect: The renovation of the John V. Hoene Ice Arena, fiirther described on Exhibifi A, attached hereto and incorporated herein. 3.9. Proiect Construction Costs: All costs for and associated with Project construction_ 3.1.0. School District: Independeni School District 197, a Minnesota public corporation. 3.l 1. School Dist�rrict Representative: The School Dzstrict Superintendent or designee. 3.12. Uncontrollable Circumstances: The•occunren.ce or non-occuzrence of acts or events beyond the reasonable control of the Party relying thezeon, and not the result of wiliful or negligent action or inactian of the Party claixning the event as an Uncontrollable Circunnstance, that materially and adversely affects the performance of the Party claiming the event as an Uncontrollable Circumstance including but not limited to the following: (a) Acts of God, including, but not limited to floods, ice storms, blizzards, tornadoes, �andslides, lighting and earthquakes (but not including reasonably anticipated weather conditions for the geog�raphic area), riots, insuxrections, war or civil disorder affecting fihe perfozxnance of work, blockades, power or other utiiity failure, and fires or explosions. � (b) The adoption of or change in any federal, state, or locai laws, rules, regulations, ordinances, permits, or licenses, or changes in the interpretation of such laws, rules, regulations, ordinances, permits, or licenses by a court or public agency having appropriate jurisdiction after the date of the execution of this Agreement. (c) A suspension, terrnination, interruption, de.nial, or failwre of renewal of any permit, license, consent, authorization, or approval essential to the conshuction of the Project. (d) Orders andlor judgments of any federal, state, or local court, adnunistrative agency, or governmental body, provided, however, that the contesting in good £aith by such Party of any such order and/or judgment shall not constitute or be consirued to constitute a willful or negligent action or inaction of such Party. (e) Strikes or other such labor disputes shall not be considered an Uncontrollable Ciurcumstance, unless such strike or labor dispute involves persons with whom the Parties have no employznent relationship and for whom, despite using best efforts, the Parties cannot obtain substitute pezfornr�ance. 2 4' page 35 3.13. VJest St. Paul: The City of West St. Paul, a Minnesota municipal corporation. 3.14. West St. Paul Representative: The West St. Paul City IVlanager, or his designee. 4. PROJECT DEVELOPMENT, DESIGN, CONTRA.CT AWARD, CONSTRUCTION 4.1. DevelopmenY and Desi�n. The Parties will jointly develop and design #he scope of the Proj ect. 4:2. Contraci Award. The Contract Documents shall be approved by the Parties prior to the solicitation of bids. Tn accoirdance with the applicable provisions of Minnesota St.atutes Ch. 429, West St. Paul will cause bids to be received by it for the construction of the Project and, subject to approval by the Mendota Heights and School District Representatives, shall award the contract for the construction o£the Project to the lowest responsible biddex. 43. Proiect Construction. Subject to Uncontrollable Circumstances, West St. Paul shall cause the Project to be constructed in accordance with the Contract Documents. 4.4. Construction Adr�ninistxation. West St. Paul shall perform appropriate Project construction admirustration services, including, without Iunitation, representation of the Parties hereto with regard to activities of the Contractor at the construction site, periodic observations of the work at the construction site, initiate appropxiate action to pzesent or have corrected as appropriate, any work observed noi to be in accordance with the Contract Docunnents, process Change Orders, and process Contractor gay request. West St. Paul shall not be zesponsible for the acts or omissions of the Contractor nor shall West St. Paul be responszble for construction means, methods, techniques, sequences, procedures or safety precautions at the construction site. 4.5. Chan�e Orders. The Parties acknowledge that Contract Documents will be entered infio by West St. Paul on behalf of the Parties with respect to the Project, and that Change Orders or other documents may be entered into by the Parties, or by West St. Paul on behalf of the Parties, with respect to the Project. To the extent any Char�ge Order zncreases the cosi of the Project described in Exhibit A which would result in an increase iz� the contr�bution of one or both of the other Parties, West St. Paul must not approve such a Change Order without the approval of the governing body of the Party or Parties affected by the increased cost of the Pzoject. This Agreeznent sha11 be construed so as to give the fullest effect to its proviszons, consistent with the provisions of the other contracts and documents referred to above. 5. PROJECT COSTS 5.1. Allocation. The expenses associated with the Project shall be allocated a�tz�ongst the Parties as follows: � (a) West St. Paul sha11 contribute $555,333.00 through general obligation bonds issued on or before July 1, 2015. (b) School Aistrict shall contribute $555,333.00 by paying West St. Paul by check or wire transfez on oz before May 15, 2015. 3 page 36 (c) Mendota Heights shall contribute $555,333.00 by paying West St. Paul by check or � � wire transfer as follows_ , n�� l. `$27_7_,b66:50. on.or liefore. Ivlay 15, 2015 r � � d 2. $277,666.50 on or before January I5, 2019 � � �� 5.2. Payments to Contractor. West St. Paul shall make progress payments to the Contractor foz the construction of fihe Project, and upon prior approval of the Parties, shali make the final payznent to the Contractor in accordance with fihe Contract Documents as agent for the other Parties and on its own behalf. 6. � REPRESENTATIVES To assist the Parties in the day-to-day per%rmance of this Agreement and to ensure compliance with fihe specifications and provide ongoing consultation, representatives shall be designated by the Parties. The Parties shall infornn the others, in writing, of any chan.ge zn the designated representative. At the time of execution of this Agreement the designated representatives are identified in Section 3, the Definitions Section of this Agreement. 7. LXABILITY .AND INSURANCE Each Party to this Agreement shall be liable for its own acts or omissions and those of its own employees and the results thereof to the extent authorized by law, and sha11 not be responsible foz the acts of the other Party, its agents or employees. It is understood and agreed fhat liability ancl. damages arising from the Parties' acts and omissions are govezned by the provisions of the municipal Tort Claims Act, Minn. Stat. Ch. 466, the Minnesota. Tort Claims Act and other applicable laws. Each Party warrants thafi ii is able to comply with the aforementioned liability and insurance requirements through an insurance or self-insurance pzogzam and that each has minimum coverage conszstent with the liability liz�nits contained in Minn. Stat. Ch. 466. This Agreement shall not be construed as and does not constitute a waiver by any Party o£ any conditions, exclusions or liznitations on the Party's liability provided by Minnesota Statutes; Chapter 466, or other applicabie laws. This clause will not be construed to bar any legal rernedies that each Party may have for another's failure to fulfill its obligations under this Ag�reement. 8. GOVERNMENT DATA PRACTICES The Parties must com.ply with the Minnesota Government Data Practices Act, Minn. Stat. Ch. 13, as it applies to all data provided by each Party under this Agreezx�.ent, and as it applies to a11 data created, collected, received, stored, used, xnaintained, or dissemin.ated by any Par[y under this Agreez�rient. 9. VENUE Venue fox a11 Iegal proceedings out of this Agreement, or its breach, must be in the appropriate court of connpetent jurisdiction in Dakota County, Minnesota. � .� , page 37 10. TERMiNATION 10.1. Terznination. Thzs Agreement may be terminated by any Party for Cause. "Cause" is defined as a breach of this Agreement by a Party or a Party's habitual neglect in the performance of its obligation:s pursuani to fihis Agreement. Cause wzil not be deemed to exist unless and until the Party asserting that a breach or habitual neglect has occurred provides the Party in breach or habiival neglect with written notice providing specifzc no#zce of the breach or habitual neglect and a sixty (60) calendar day opportunity to cure the breach or habitual neglect and the Pariy in receipt of the notzce of breach or habitual negleci fails to zemedy such breach or habitual neglect within sixty (60) calendar days. Upon termination of this Agreement for Cause, School District or Mendota Heights may request reim.bursement foz their respective portion of the contributed Project Construction Costs that have been paid to West St. Paul, on a pro-rated basis. 10.2. Terminatian for Insufficient Fundin�. Any Party may immediateiy terminate thzs Agz�eeznent if West St. Paul ;fails to successfully issue general obligation bonds to fund its portion of fhe Project. A Party is not obligated to pay for a�y services that are provided after notice and effective date of tenmination. A Party will not be assessed any penalty or damages if the Agreement is terminated due to lack of funding under this paragraph. West St. Paul must provide the other Parties notice of the lack of fundin.g withzn a reasonable time of receiving that notice. 103. Termination for Closin� Prior to 20 years, If the Ice Arena closes before December 31, 2021, School District or Mendota Heights may terminate this Agreement and zxiay request reimbuzsement for their respective poz-tion of the contributed Project Construction Costs thai have been paid to West St. Paul, on a pro-rated basis. However, if the Ice .Axena closes after January 1, 2022, due to any of the foliowing: ' (a) Local youth hockey programs rents less thara 65% of the ice tizne at the Ice Arena than the youth hockey programs rented the previous year; . (b) School District discontinues its hockey program or rents less than 65% of the ice tizne at the Ice Arena ihan the School District rented the previous year; or . (c) Uncontrollable Cizcumstances, then no Party shall be entitled to reimbursement for any portion of the contzibuted Project Construction Costs. 10.4. On-Goin� Ownership and Operation of Ice Arena. At the end of the Tenm of this Agreement or upon its termination as described in this Article 10, West St. Paul will continue to own and operate the Ice .Arena at its own expense. 5 page 38 t 11. MISCELLANEOUS PROVISIONS Il..l. Execution in Countezparts. This Agreexnent may be execufed in any number of counterparts and by the Parties hereto on separate counterparts, each of which counierparts when so executed and delivezed shall be deemed to be an original, and ail of which counterparts when taken together shall constitute but one and the same Agreemenfi. 11.2. Assignment No Party may assign or transfer any rights or obligations under this Agreement without the pxior consez�t of the other Partzes and a fully executed Assignment Agreement, e�ecuted and approved by the sarne Parties who executed and approved this Agreenaent, or their successors in office. 11.3. Amendments. .Any amendment to this Agreemen# 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 Agreement, or their successors in office. 11.4. Waiver. If any Party fails to enforce any provision of this Agreement, that failure does not wa.ive the provision or its xight to en%rce it. 11.5. Contract Coznplete. This Agreement contains all negotiations, understandings and agreenaents between the Parties. No ofiher understanding, agreement or revision regarding this Agreement, whether written or ora1, may be used to bind any Party unless staied in writing and signed by all Parties. 11.6 Severabilitv. In case any one or more of the provisions of the Agreeznent will be invaiid, illegal, or unenforceable in any respect, the validity, legality, and enforceability of the remaining proviszons contained in this Agreem.ent will not in any way be affected or innpaired thexeby. 11.7 Notices. All notices or communications required or permitted pursuant to this Agreement sha11 be either hand delivered or mailed to the Parties, certified mail, return-receipt requested, to the following address: WEST ST. PAUL: West St. Paul Attn: City Manager 1616 Htunboldt Avenue West St. Paul, MN 551 I8 MENDOTA HEIGHTS: Mendota Heights Aitn: City Administrator 1101 Victoria Curve Mendota Heights, MN 55118 .� page 39 SCHOOL DISTRICT: ISD 197 Attn: Director of Operations 1897 Delaware Avenue Mendota Heights, MN 551158 IN WIT`NESS WIIEREOF, the undersigned governmental units have caused this Agreeinent to be executed by its duly authorized officers. WEST ST. PAUL David Meisinge Mayor Ma ew Fulton City Manager Date: �,�V`iif/� 3 0 2'0 � j 7 page 40 CITY OF MEN TA HEIGHTS ��� Name: Sandra Kre s ach Ma or Titie: Y Name: Tamara Schutta Title: Interim City Administrator February 5,2015 Date: INDEPENDENT SCHOOL DISTRICT 197 Name: � 4 �w� �u:t/� `'V1 l�-t�'K -� � t.t�'�/' Title: �' ��^'' /S� GC���� Name: N GVh CM -� I I�V'1 — M �1.5 `1/0 Title: � 1�..� P�t/'t � � d �� --z Date: �� /�~ /�' ,� page 41 EXHIBIT A Total Project Estimate Architectural systems Roofing $ 50,000 Exterior issues� $ 60,000 Interior Issues $ 36,000 Mechanical Systems piumbing $ 39,000 HVAC $ 250,000 Electrical lighting $ 46,000 Ice System concrete floor $ 525,000 refrigeration ( R-22 Replacement) $ 600,000 Total Construction � 1,606,000 Design/Engineering (16%) $ 260,000 Total Project estiinate $ 1,866,000 Funding Sources State of Minnesota $ 200,000 West St Paul $ 555,333 Mendota Heights $ 555,333 ISD 197 $ 555,333 $ 1,865,999 2015x $ 60,000 $ 36,000 $ 39,000 $ 40,000 $ 46,000 $ 525,000 $ 600,000 $ 1,346,000 $ 201,900 $ 1,547,900 page 42 2019 $ 50,000 $ 210,000 $ 260,000 $ 39,000 $ 299,000 $ 200,000 $ 555,333 $ 277,666 $ 277,666 $ 555,333 $ 1,588,332 $ 277,666 *2105 Project elements will be completed between March 15 and September 15, 2015 10 page 43 CITY OF MENDOTA HEIGHTS DAKOTA COUNTY, MINNESOTA RESOLUTION 2015-08 RESOLUTION FORMALLY AUTHORIZING PARTICIPATION IN A JOINT POWERS AGREEMENT (JPA) FOR THE RENOVATION OF TIi� JOHN V. HOENE ICE ARENA WHEREAS, the City of Mendota Heights recognizes the importance of the John V. Hoene Ice Arena, located in West St. Paul, to the northern Dalcota County area; and WIiEREAS, the ice arena is in need of repairs and upgrades, without which may require the closing of the arena; and WHEREAS, the Mendota Heights City Council on September 16, 2014 approved a letter pledging up to $555,333 towards the renovation of the ice arena in conjunction with the City of West St. Paul and ISD 197; and WHEREAS, the City Councii Mendota Heights will malce i/2 of the contribution in 2015 with the second '/2 being paid in 2019; and WHER�AS, the City Council of Mendota Heights have duly considered this matter and wish to enter into an agreement for the renovation of the John V. Hoene Ice Arena. NOW THEREFORE BE IT RESOLVED that the City Council of the City of Mendota Heights, Minnesota has by RESOLUTION 2015-08 FOItMALLY AUTHORIZED PAR'TICAPTION IN A JOlNT POWERS AGREEMENT FOR THE RENOVATION OF THE JOHN V. HOENE ICE .� . Adopted by the City Council of the City of Mendota Heights this 3`d day of February, 2015. ATTES r Lorri Smith, City Clerk CITY COUNCIL CITY OF MENODTA HEIGHTS . '' .�.-----�.• �; f'` r � ;' '� ..,�°' `' � ��,�'i•,.,..;,-�"'-""^"/'� ���y �� - ���"""��Sandra Krebsbach, yor _: .-� � ' �_ � CITY OF I`/IEND�TA HEI�HTS DATE: TO: FROM: SUBJECT: June 20, 2017 Mayor, City Council and City Administrator Kristen Schabacker, Finance Director St. Thomas Academy Amendments page 44 Sg. C� i I� � �� pn:; ie I d5t 5� i;��k. wv�w�merdcta heiqh;scom� INTRODUCTION The City Council is asked to approve an amendment to tax-exempt financing notes which were previously issued by the City for the benefit of St. Thomas Academy. BACKGROUND In 2012, the City issued $6 million of revenue notes that were loaned to St. Thomas Academy to finance qualifying improvements on the STA campus As part of that issuance, a Loan Agreement dated May 12, 2012 was signed between the City, the Borrower (STA), and the Lender, which is U.S. Bank National Association. In the Agreement, the Borrower agreed to repay the notes in specified amounts and at specified times. In addition, the Loan Agreement contained provisions relating to the expenditure of proceeds of the Note, and how the benefitted project was to be maintained and insured. Pursuant to a Pledge Agreement, also dated May 12, 2012 between the City and the Lender, the City pledged and granted a security interest in all of its rights, title, and interest in the Loan Agreement to the Lender, with certain exceptions. The Lender and the Borrower have informed the City that they have agreed to certain changes in the terms of the Note. Such changes require the approval of the City. No public hearing is necessary. Nothing in the resolution or in the documents prepared authorizes the expenditure of any municipal funds on the Project, other than the revenues derived from the Project or otherwise granted to the City for this purpose. The Note, as amended, shall not constitute a charge, lien, or encumbrance upon the City, except the revenues and proceeds pledged to the repayment. The City is not subject to any liability as a result. Neither the Lender nor any future holders of the Note will have the right to the taxing power of the City to pay the outstanding principal on the Note or any related interest, or to enforce page 45 payment against any property of the City. The Note is payable solely from the revenue and proceeds pledged to the payment thereo£ The Note is not a constitutional or statutory limitation debt of the City. BUDGET IMPACT There is no budget impact on the City. By adopted policy of the City, St. Thomas will be charged a non-refundable fee of $1,500, as well as any City expenses that would exceed this amount. ACTION REQUIRED If City Council wishes to authorize the amendments to the Education Facility Revenue Note (St. Thomas Academy Project), Council should pass a motion adopting the attached resolution: RESOLUTION 2017-47 PROVIDING FOR THE FIRST AMENDMENT TO EDUCATIONAL FACILITY REVENUE NOTE (ST. THOMAS ACADEMY PROJECT), SERIES 2012 AND AUTHORIZING THE EXECUTION OF DOCUMENTS RELATED THERETO. page 46 Extract of Minutes of Meeting of the City Council of the City of Mendota Heights, Minnesota Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Mendota Heights, Minnesota was duly held at City Hall in said City on Tuesday, the 20th day of June, 2017 at 7:00 o'clock P.M. The following Council members were present: and the following were absent: Council member then introduced and read the following written resolution and moved its adoption: A RESOLUTION PROVIDING FOR THE FIIZST AMENDMENT TO EDUCATIONAL FACILITY REVENUE NOTE (ST. THOMAS ACADEMY PROJECT), SERIES 2012 AND AUTHORIZING THE EXECUTION OF DOCUMENTS RELATED THERETO The motion for the adoption of the foregoing resolution was duly seconded by Council member , and upon vote being taken thereon the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. page 47 RESOLUTION 2017 - 47 RESOLUTION PROVIDING FOR THE FIRST AMENDMENT TO EDUCATIONAL FACILITY REVENUE NOTE (ST. THOMAS ACADEMY PROJECT), SERIES 2012 AND AUTHORIZING THE EXECUTION OF DOCUMENTS RELATED THERETO BE IT RESOLVED by the City Council of the City of Mendota Heights, Minnesota (the "City"), as follows: SECTION 1 LEGAL AUTHORIZATION AND FINDINGS. l.l Findin�s. The City hereby finds, determines and declares as follows: (1) The City, pursuant to Resolution 2012-26 adopted on April 17, 2012 (the "Note Resolution"), has previously issued its revenue note in an original aggregate principal amount of $6,000,000 to provide funds that were loaned to St. Thomas Academy, a Minnesota nonprofit corporation (the "Borrower"), to finance the acquisition, construction, and equipping of an addition to and renovation of the Borrower's existing facilities, including a student center, bookstore, offices, classrooms, fine arts center, science labs, fitness center, locker room, and gymnasium, located in the City, which facilities are owned and operated by the Borrower (the "Proj ect"). (2) The City issued the Educational Facility Revenue Note, Series 2012 (St. Thomas Academy Project) dated May 21, 2012, (the "Note"), pursuant to Minnesota Statutes, Section 469.152 to 469.165, as amended (the "Act"), and sold the Note to U.S. Bank National Association, a national banking association (the "Lender"). (3) Pursuant to a Loan Agreement (the "Loan Agreement") dated May 21, 2012 between the City, the Borrower, and the Lender, the Borrower agreed to repay the Note in specified amounts and at specified times sufficient to pay in full when due the principal of, premium, if any, and interest on the Note. In addition, the Loan Agreement contains provisions relating to the expenditure of proceeds of the Note, the maintenance and operation of the Proj ect, indemnification, insurance, and other agreements and covenants which are required or permitted by the Act and which the City, the Borrower and Lender deem necessary or desirable for the financing of the Proj ect. (4) Pursuant to a Pledge Agreement (the "Pledge Agreement") dated May 21, 2012 between the City and the Lender, the City pledged and granted a security interest in all of its rights, title, and interest in the Loan Agreement to the Lender (except for certain rights of indemnification and to reimbursement for certain costs and expenses). (5) The Lender and the Borrower have informed the City that they have agreed to certain changes in the terms of the Note. page 48 (6) The form of First Amendment to Note between the City, the Borrower, and the Lender, proposed to be entered into in order to document changes in the terms of the Note has been submitted to the City Council and is on file in the office of the City Clerk (the "Note Amendment"). (7) The form of First Amendment to Loan Agreement between the City and the Borrower and consented to by the Lender, proposed to be entered into in order to document changes in the terms of the Loan Agreement has been submitted to the City Council and is on file in the office of the City Administrator (the "Loan Agreement Amendment"). SECTION 2 AUTHORIZATION OF NOTE AMENDMENT. 2.1 Approval and Execution of Note Amendment and Loan Agreement Amendment. (1) The Note Amendment and Loan Agreement Amendment are made a part of this Resolution as though fully set forth herein and are hereby approved in substantially the form presented to the City Council. The Mayor and the Administrator are authorized and directed to execute, acknowledge, and deliver the Note Amendment and Loan Agreement Amendment on behalf of the City with such changes, insertions, and omissions therein as bond counsel to the City may hereafter deem appropriate, such execution to be conclusive evidence of approval of such documents in accordance with the terms hereof. (2) The Mayor and the Administrator are authorized and directed to execute and deliver all other documents which may be required under the terms of the Note Amendment and Loan Agreement Amendment or by bond counsel, and to take such other action as may be required or deemed appropriate for the performance of the duties imposed thereby to carry out the purposes thereof. (3) The Mayor and Administrator and other officers of the City are authorized to furnish to the Lender, the Borrower, and bond counsel certified copies of all proceedings and records of the City relating to the Note Amendment and Loan Agreement Amendment, and such other affidavits and certificates as may be required to show the facts relating to the legality and marketability of the Note as such facts appear from the books and records in the officers' custody and control or as otherwise known to them; and all such certified copies, certificates, and affidavits, including any heretofore furnished, shall constitute representations of the City as to the truth of all statements contained therein. (4) In the event that for any reason the Mayor or the Administrator are unable to carry out the execution of any of the documents or other acts provided herein, any other officer of the City or member of its City Council as, in the opinion of the City's attorney, are authorized to act in that capacity and undertake such execution or acts on behalf of the City, shall without further act or authorization execute and deliver the Note Amendment and Loan Agreement Amendment and do all things and execute all instruments and documents required to be done or executed by such officers, with full force and effect, which executions or acts shall be valid and binding on the City. (5) This resolution constitutes a supplement to the Note Resolution. page 49 2.2 No Liabilitv of CitX. Nothing in this resolution or in the documents prepared pursuant hereto shall authorize the expenditure of any municipal funds on the Proj ect other than the revenues derived from the Project or otherwise granted to the City for this purpose. The Note, as amended, shall not constitute a charge, lien, or encumbrance, legal or equitable, upon any property or funds of the City except the revenues and proceeds pledged to the payment thereof, nor shall the City be subj ect to any liability thereon. The holders of the Note shall never have the right to compel any exercise of the taxing power of the City to pay the outstanding principal on the Note or the interest thereon, or to enforce payment thereof against any property of the City. The Note recites in substance that the Note, including interest thereon, is payable solely from the revenue and proceeds pledged to the payment thereo£ The Note shall not constitute a debt of the City within the meaning of any constitutional or statutory limitation. SECTION 3 BANK QUALIFIED. 3.1 Qualified Tax Exem�t Obli_at� ions. The Note, as amended, is deemed a"qualified tax- exempt obligation" within the meaning of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended (the "Code"). page 50 Adopted by the City Council of the City of Mendota Heights, Minnesota this 20th day of June, 2017. Mayor ATTEST: Clerk CERTIFICATE STATE OF MINNESOTA COUNTY OF DAKOTA CITY OF MENDOTA HEIGHTS page 51 I, Lorri Smith, duly appointed, acting and qualified Clerk of the City of Mendota Heights, do hereby certify that I have examined the City of Mendota Heights records and the Minute Book of said Authority for the meeting of the 20th of June, 2017 and that the attached copy of the RESOLUTION PROVIDING FOR THE FIRST AMENDMENT TO EDUCATIONAL FACILITY REVENUE NOTE (ST. THOMAS ACADEMY PROJECT), SERIES 2012 AND AUTHORIZING THE EXECUTION OF DOCUMENTS RELATED THERETO was approved and is a true and correct copy of the City Proceedings relating to said Resolution. IN WITNESS WHEREOF, I have hereunto set my hand this day of , 2017. Clerk City of Mendota Heights � �u O C � 3 m N Y N i� Q � Vl Y � � � O Q W � +T+ .; � a C � .� m t bA .� _ +�+ O � C CW C n 0 m � n N M i m � n N ri m � c � v 0 v « � � � u 4 y o O V d �i O O O W O o v 0 0 0 � c O m � m > O o 0 0 0 2 .� d a — c o V y o � •� o a 3 � � E fL Q F V � V O O � W O N� O O W 0 d a v O V d �i O O O 0 0 o v � o v � C 0 .� � m > o � Z o o v .� d a — c L � � � � • o a 3 � E � m Q F V � V O W O O W O W O � O O � V W d � V �/�1 0 V � d �i 0 0 0 0 0 0 0 0 0 0 0 � o� 0 0 0� o� O O V C 0 .� � m > � v o o °� 2 .� a - c o y o � - o a 3 � � E � m Q F V � V O O O O V t�D � O O O O � � d O V d �i O O O O O io O m� O C O .� � m > � o 0 0 0 2 .� d a — m c o y o � •� o a 3 � � E m Q F V � V a � a h H O M N �/1 O O n b O N �1 b O ti 7 N O O O O V Ol � � p O d O V d �i C 0 .� � m > � � o 2 .� d a - d � � E °,.' 3 � � — 3 � � o y� o M v � « a m � v o _ n O N V ti d �i � � M h n ti O ^ � � O O ti ti v�i y � c � � " _ O J V � O N � Y O M � y N N � N V ti �/1 d �i � M h M c � o �0 .� � � � a a � � a �7 `o � � � y " _ o J V O N � O H O1 Y O Q M y a1 N O b V � r1 d t/1 LL t/1 ti b n � C rl o � .� � � � a a � � a � � � � c � � " _ o J V O O Q � O N h � A O - M ti O M V d t/1 LL t/1 O O n b O c N O .� � > v1 O M Z ty O O ti ti 7 N page .53 �,, .. Si. � � r cirv oF � fL'7E_ RI[�C7_T'.4 f-iE:_IC�f i-i:� Request for City Council Action MEETING DATE: June 20, 2017 TO: Mayor, City Council, and City Administrator FROM: Scott Goldenstein, Assistant Fire Chief SUBJECT: May 2017 Fire Synopsis Fire Calls The department responded to 19 calls for the month. Of those calls, 12 were located in Mendota Heights, one in Mendota, one in Sunfish Lake and four in Lilydale. Twelve of the 19 calls were either good intent or false alarms, three of the 19 calls were EMS in nature, one call was a multiple vehicle accident and another call was for a utility check We did have a call for a room and contents kitchen fire on Marie Ave. that crews were able to extinguish without the fire extending to other rooms in the home. We also responded to a request from Inver Grove Heights for mutual aid assistance and we sent two trucks and crews. Four of the calls were at commercial occupancies. Monthlv Department Trainin� The department had a guest speaker come in to the department and address the firefighters to make them aware of the fact that studies are showing that firefighting does significantly increase a person's risk for numerous cancers. He also demonstrated numerous ways for firefighters to help minimize their exposures and risks. Monthlv Squad Trainin� For squad training this month, crews went to Eagan's station 2 to utilize their training facility where the engineer (driver) was directed to establish a water supply from a hydrant to the truck and then from the truck to a multiple story building. At the same time, the remaining crew made entry into the building and needed to hook into the water connection in the stairwell and advance a hose line to allow for a fire attack on the second floor. These skills are extremely important for our firefighters since they would be used at most multi-story commercial buildings, hotels and apartments in the areas that we protect. MENDOTA HEIGHTS FIRE DEPARTMENT MAY 2017 MONTHLY REPORT FIRE CALLS NO. 17095 - 17113 NUMBER OF CALLS: 19 FIRE ALARMS DISPATCHED: NUMBER STRUCTURE CONTENTS MISC ACTUAL FIRES Structure - MH Commercial Structure - MH Residential Structure - Contract Areas Vehicle - MH Vehicle - Contract Areas Grass/Brush/No Value MH Grass/Brush/No Value Contract MEDICAL Assist Extrication HAZARDOUS SITUATION Spills/Leaks Arcing/Shorting Chemical Power Line Down FALSE ALARM Residential Malfunction Commercial Malfunction Unintentional - Commercial Unintentional - Residential Criminal GOODINTENT Smoke Scare Steam Mistaken for Smoke Other MUTUAL AID TOTAL CALLS LOCATION OF FIRE ALARMS: MENDOTA HEIGHTS 12 MENDOTA 1 SUNFISH LAKE 1 LILYDALE 4 OTHER 1 TOTAL 19 WORK PERFORMED HOURS FIRE CALLS 274.5 MEETINGS 36 DRILLS 159 WEEKLY CLEAN-UP 35 SPECIAL ACTIVITY 166 ADMINISTATIVE FIRE MARSHAL 53 TOTALS 723.5 1 3 1 2 2 1 TO DATE 83 4 7 14 5 113 TO DATE 1561.5 195.5 797 166.5 1000 0 216.5 3937 $60,000 $10,000 page 54 TOTALS TO DATE $0 $145,500 $0 $2,000 $0 TOTAL MONTHLY FIRE LOSSES $60,000 $10,000 $0 FIRE LOSS TOTALS MENDOTA HEIGHTS ALL FIRES, ALL AREAS (MONTH) $70,000 $70,000 MEND. HTS. ONLY STRUCT/CONTENTS $145,500 MEND. HTS. ONLY MISCELLANEOUS $2,000 MEND. HTS. TOTAL LOSS TO DATE $147,500 BILLING FOR SERVICES AGENCY THIS MONTH TO DATE MN/DOT $0 MILW. RR $0 CNR RR $0 OTHERS: $0 LAST YEAR TOTALS: $0 $0 60 3 FIRE MARSHAL'S TIME FOR MONTH 8 8 INSPECTIONS 15 7 INVESTIGATIONS 0 86 RE-INSPECTION 0 LAST YEAR MEETI NGS 0 1343.5 195 ADMINISTRATION 12.5 862 194.5 SPECIAL PROJECTS 25.5 968.25 0 255 3818.25 TOTAL 53 REMARKS: SEE OTHER SIDE FOR SYNOPSIS CITY OF MENDOTA HEIGHTS TREASURER'S REPORT MAY 2017 American Bank Checking Account .02% Savings Account .02% Collateral - Bonds Gov't. Guar. Investments Saving Cert 1/26/15 @0.15% Cherokee FNMA 1.125% 7/27/21 FHLMC 1.00% 10/28/21 FHLMC 1.50% 3/29/22 FHLMC 1.50% 5/10/22 Texas Exchange Bank 2.10% 1/24/22 Compass Bank 1.30% 12/11/17 Ally Bank 1.25% 12/11/17 Bankunited Natl Assn 1.100% 02/20/18 GE Capital Retail Bank 2.00% 7/6/18 Mercantile Commercial Bank 1.20% 9/21/18 Sallie Mae Bank 2.050% 11/20/18 BMW Bank 2.00% 12/11/18 Comenity Bank 2.00% 07/15/19 Capital One Bank USA 2.00% 08/12/19 Capital One Bank 2.00% 08/12/19 World's Foremost Bank 2.00% 08/13/19 Goldman Sachs Bank 2.20% 12/17/19 Discover Bank 2.050% 06/10/20 Orrstown Bank 2.00% 08/28/20 JP Morgan Chase Bank 1.25% 7/29/21 Northern Bank & Trust 2.00% 8/24/21 HSBC Bank 1.25% 11/09/21 Fidelity Institutional Government Portfolio (Piper) Gov't. Securities Fund 28% Sold 6/4 MMkt Fd (WF) TOTAL FUNDS AVAILABLE 5/31/2017 Funds Available 1/1/2017 Rates Monev Market May Bank 0.02% 5 Yr. Tr. 1.75% 10 Yr. Tr. 2.21 % BALANCE COLLATERAL $31,265.00 640.91 $31,905.91 $1,200,000.00 $250,000.00 Cost PV $13, 952. 59 $500,000.00 $500,000.00 $200,000.00 $500,000.00 $245, 000.00 $245,000.00 $245,000.00 $245,000.00 $200,000.00 $245,000.00 $245,000.00 $245,000.00 $200,000.00 $245,000.00 $245,000.00 $200,000.00 $100,OOQ.00 $200,000.00 $245,000.00 $245,000.00 $245,000.00 $245,000.00 $2,679,020.60 $433,187.00 $585,469.58 $9,528,535.68 $12,237,681.64 $13, 952.59 $494,330.00 $498,700.00 $199,860.00 $499,705.00 $243,334.00 $245, 340.55 $245,198.45 $245,323.40 $201,626.00 $243,799.50 $247,258.90 $247,268.70 $200,628.00 $247, 574.95 $247,574.95 $200,650.00 $101,238.00 $201,194.00 $245,215.60 $240,036.30 $244,157.20 $244,296.85 $2,679,020.60 $1,031,000.00 Sj. page 56 11�1 `✓ictaria Carve I �endot Sk. 651.A52.185U phone I 651.�52.8940 fax _ wvaw.mendata-heighis.com , CITY OF MENDOTA HEI�HTS Request for City Council Action MEETINGDATE: June 20, 2017 TO: Mayor, City Council and City Administrator FROM: Kristen Schabacker, Finance Director 1��,(W�' SUBJECT: Claims List Summary SACKGROUND Si�nificant Claim A to Z Home Inspections — May Inspections BerganKDV — 2016 Audit Billing Century Fence — Victoria Highlands Improvements Foth Infrastructure — Sump Pump Inspections Kadrmas, Lee & Jackson — Dodd Road Trail Work LMCIT — Worker's Comp Insurance Premium Rupp, Anderson, Squires & Wald — Legal Service Manual Checks Total System Checks Total Total for the list of claims for the June 20, 2017 city council meeting $ 9,616.88 $ 20,000.00 $ 11,759.00 $ 23,277.57 $ 26,018.14 $ 254,623.00 $ 6,568.68 $ 7,244.15 $ 407,400.22 $ 414,644.37 RECOMMENDATION: Staff recommends that the Mendota Heighs City Council approve the list of claims for June 20, 2017. CITY OF MENDOTA HEIGHTS Claims List MANUAL CHECKS 06/15/17 MAN Account Comments DEPT Descr Amount Search Name HENNEPIN COUNTY WARRANTS G 01-2030 WARRANT MONEY $50.00 Search Name HENNEPIN COUN7Y WARRANTS $50.00 Search Name I C M A RETIREMENT 457 G 01-2072 6/2/17 PAYROLL Search Name I C M A RETIREMENT 457 Search Name NATIONWIDE RETIREMENT SOLUTION G 01-2072 6/2/17 PAYROLL Search Name NATIONWIDE RETIREMENT SOLUTION Search Name SELECT ACCOUNT G 01-2071 E 05-4131-105-15 E 01-4131-070-70 E 01-4131-050-50 E O1-4131-020-20 Search Name SELECT ACCOUNT JUNE 2017 HSA CONTRIBUTIO JUNE 2017 HSA CONTRIBUTIO JUNE 2017 HSA CONTRIBUTIO JUNE 2017 HSA CONTRIBUTIO JUNE 2017 HSA CONTRIBUTIO Search Name UNITED WAY OF ST. PAUL G 01-2070 6/2/17 PAYROLL Search Name UNITED WAY OF ST. PAUL $1,917.29 $1,917.29 $50.00 $50.00 $2,667.84 Engineering Enterprise $483.34 Parks & Recreation $366.67 Road & Bridges $283.34 Police $1,410.67 $5,211.86 $15.00 $15.00 $7,244.15 page 06/15/17 3:11 PM Page 1 CITY OF MENDOTA HEIGHTS Claims List SYSTEM CHECKS 06/20/17 PAY Account Comments DEPT Descr Amount Search Name 4 PAWS ANIMAL CONTROL LLC E 01-4225-800-90 MAY 2017 ANIMAL CONTROL Animal Control $320.63 G 01-2035 MAY 2017 ANIMAL CONTROL -$20.63 E 01-4225-800-90 APRIL 2017 ANIMAL CONTROL Animal Control $387.63 G 01-2035 ' APRIL 2017 ANIMAL CONTROL -$20.63 Search Name 4 PAWS ANIMAL CONTROL LLC $667.00 � Search Name A TO Z HOME INSPECTION, LLC E Oi-4231-040-40 MAY 2017 INSPECTIONS Code Enforcement/Inspe $9,616.88 Search Name A TO Z HOME INSPECTION, lLC $9,616.88 Search Name ALL CITY ELEVATOR, INC. E 08-4335-000-00 ]UNE 2017 MAINTENANCE Search Name ALL CITY ELEVATOR, INC. Search Name ALLIED BLACKTOP COMPANY Spec Fds E 01-4423-050-50 SEAL COAT - STREET MAINTEN Road & Bridges Search Name ALLIED BLACKTOP COMPANY Search Name AMERICAN PROMOTIONAL INCENTIVE E 45-4490-045-45 JR GOLF T-SHIRTS - PAR 3 Golf Course E 01-4435-200-70 PLAYGROUND T-SHIRTS Parks & Recreation Search Name AMERICAN PROMOTIONAL INCENTIVE Search Name AMERIPRIDE SERVICES E O1-4200-610-70 E 01-4410-050-50 E 15-4200-610-60 E 01-4200-610-50 E O1-4200-610-70 E O1-4410-050-50 E 01-4200-610-50 E 15-4200-610-60 Search Name AMERIPRIDE SERVICES Search Name APACHE GROUP E 08-4335-000-00 Search Name APACHE GROUP Search Name AUTOZONE E 01-4330-490-70 E 01-4305-050-50 E 01-4305-070-70 E O1-4330-490-70 E 01-4330-490-70 Search Name AUTOZONE Search Name B& K TRAINING, LLC E 01-4403-030-30 Search Name B& K TRAINING, LLC MAT SERVICE - PW UNIFORM MAT SERVICE - PW MAT SERVICE - PW MAT SERVICE - PW UNIFORM MAT SERVICE - PW MAT SERVICE - PW SUPPLIES - CITY HALL EQUIPMENT REPAIR - PARKS OPERATING SUPPLIES - STREE OPERATING SUPPLIES - PARKS EQUIPMENT REPAIR - PARKS EQUIPMENT REPAIR - PARKS EMR REFRESHER - FIRE Parks & Recreation Road & Bridges Utility Enterprise Road & Bridges Parks & Recreation Road & Bridges Road & Bridges Utility Enterprise Spec Fds Parks & Recreation Road & Bridges Parks & Recreation Parks & Recreation Parks & Recreation Fire Search Name B S N SPORTS E 01-4330-490-70 EQUIPMENT REPAIR - PARKS Parks & Recreation Search Name B S N SPORTS $161.00 $161.00 $685.44 $685.44 $709.60 $819.40 $1,529.00 $23.03 $5.94 $19.55 $19.56 $19.56 $5.94 $23.03 $23.04 $139.65 $88.98 ` $88.98 $381.01 $18.21 $18.22 $141.74 $17.09 $576.27 $300.00 $300.00 $647.26 $647.26 page ���15/17 3:10 PM Page 1 CITY OF MENDOTA HEIGHTS Claims List SYSTEM CHECKS 06/20/17 PAY Account Comments DEPT Descr Amount Search Name BERGAN K D V E 29-4220-130-00 E 45-4220-130-45 E 15-4220-130-60 E 03-4220-130-00 E 05-4220-130-15 E 10-4220-130-00 E 01-4220-130-10 Search Name BERGAN K D V 2016 AUDIT INTERIM BILLING 2016 AUDIT INTERIM BILLING 2016 AUDIT INTERIM BILLING 2016 AUDIT INTERIM BILLING 2016 AUDIT INTERIM BILIING 2016 AUDIT INTERIM BILLING 2016 AUDIT INTERIM BILLING Spec Fds Golf Course Utility Enterprise Spec Fds Engineering Enterprise Spec Fds Administration Search Name BESSER WELDING & FABRICATION E 01-4305-070-70 OPERATING SUPPLIES - PARKS Parks & Recreation E O1-4305-050-50 OPERATING SUPPLIES - STREE Road & Bridges Search Name BESSER WELDING & FABRICATION Search Name BLUE TARP FINANCIAL E 01-4330-490-70 E 01-4305-070-70 Search Name BLUE TARP FINANCIAL EQUIPMENT REPAIR - PARKS Parks & Recreation OPERATING SUPPLIES - PARKS Parks & Recreation Search Name C. DARLENE OEHLKE, CAP E 01-4220-110-10 6/6/17 CITY COUNCIL MINUTE Administration Search Name C. DARLENE OEHLKE, CAP Search Name CENTRAL IRRIGATION SUPPLY E 01-4330-215-70 EQUIPMENT REPAIR - PARKS E 01-4330-215-70 EQUIPMENT REPAIR - PARKS E 01-4330-215-70 EQUIPMENT REPAIR - PARKS E O1-4330-215-70 EQUIPMENT REPAIR - PARKS E O1-4330-215-70 EQUIPMENT REPAIR - PARKS E O1-4330-215-70 EQUIPMENT REPAIR - PARKS E 01-4330-215-70 EQUIPMENT REPAIR - PARKS Search Name CENTRAL IRRIGATION SUPPLY Search Name CENTURY FENCE E 10-4620-000-00 Search Name CENTURY FENCE Search Name CES IMAGING E 05-4305-105-15 E 05-4305-105-15 Search Name CES IMAGING Search Name COMCAST BUSINESS E 45-4210-045-45 Search Name COMCAST BUSINESS Parks & Recreation Parks & Recreation Parks & Recreation Parks & Recreation Parks & Recreation Parks & Recreation Parks & Recreation FENCE - VICTORIA HIGHLANDS Spec Fds OPERATING SUPPLIES - ENGIN Engineering Enterprise OPERATING SUPPLIES - ENGIN Engineering Enterprise JUNE 2017 SERVICE - PAR 3 Golf Course Search Name CONTINENTAL SAFETY EQ E O1-4305-050-50 OPERATNG SUPPLIES - STREET Road & Bridges Search Name CONTINENTAL SAFETY EQ Search Name COURTEAU, NICHOLAS E 01-4400-050-50 TRAINING EXPENSE REIMBURS Road & Bridges Search Name COURTEAU, NICHOLAS $582.09 $1,492.54 $1,552.24 $1,582.09 $1,820.90 $671.64 $12,298.50 $20,000.00 $21.82 $21.82 $43.64 $139.99 $119.97 $259.96 $204.50 $204.50 $184.72 $23.28 $816.52 $84.86 $130.49 $10.00 $112.74 $1,362.61 $11,759.00 $11,759.00 $335.00 $531.80 $866.80 $204.26 $204.26 $33.00 $33.00 $235.40 $235.40 page o$/15/17 3:10 PM Page 2 CITY OF MENDOTA HEIGHTS Claims List SYSTEM CHECKS 06/20/17 PAY Account Comments DEPT Descr Amount Search Name DAKOTA COMMUNICATIONS CENTER E 01-4275-020-20 JULY 2017 DCC FEE Police $16,745.00 E O1-4275-030-30 ]ULY 2017 DCC FEE Fire $527.00 Search Name DAKOTA COMMUNICATIONS CENTER $17,Z72.00 Search Name DAKOTA COUNTY RECORDER E O1-4220-080-80 APRIL 2017 DOCUMNET RECO Planning Search Name DAKOTA COUNTY RECORDER Search Name ECKBERG LAMMERS E 08-4220-120-00 E 27-4220-790-00 E 21-4220-120-00 E 01-4220-120-80 E 01-4221-120-10 E 01-4220-120-10 E Oi-4220-120-09 E O1-4220-120-40 Search Name ECKBERG LAMMERS MAY 2017 LEGAL SERVICES MAY 2017 LEGAL SERVICES MAY 2017 �EGAL SERVICES MAY 2017 LEGAL SERVICES MAY 20ll LEGAL SERVICES MAY 2017 LEGAL SERVICES MAY 2017 LEGAL SERVICES MAY 2017 LEGAL SERVICES Spec Fds Spec Fds Spec Fds Planning Administration Administration City Council Code Enforcement/Inspe Search Name FIRE EQUIPMENT SPECIALTIES E 01-4305-156-30 OPERATING SUPPLIES - FIRE Fire Search Name FIRE EQUIPMENT SPECIALTIES Search Name FLEETPRIDE E 01-4330-490-70 E 01-4330-490-50 E 01-4330-440-20 E O1-4330-490-70 E 01-4330-490-50 E O1-4330-490-70 Search Name FLEETPRIDE Search Name FORCE AMERICA E 15-4330-490-60 Search Name FORCE AMERICA EQUIPMENT REPAIR - PARKS Parks & Recreation EQUIPMENT REPAIR - STREET Road & Bridges EQUIPMENT REPAIR - PD Police EQUIPMENT REPAIR - PARKS Parks & Recreation EQUIPMENT REPAIR - STREET Road & Bridges EQUIPMENT REPAIR - PARKS Parks & Recreation EQUPMENT REPAIR - UTILITY Utility Enterprise Search Name FOTH INFRASTRUCTURE & ENVIRON E 15-4220-060-60 SUMP PUMP INSPECTIONS Utility Enterprise E 29-4220-000-00 2017 ANNUAL PW TRAINING Spec Fds Search Name FOTH INFRASTRUCTURE & ENVIRON Search Name GERTENS GREENHOUSE E 45-4334-045-45 E 08-4335-000-00 E 08-4335-000-00 Search Name GERTENS GREENHOUSE PAR 3 MAINTENANCE Golf Course BOULDERS - CIIY HALL Spec Fds MULCH - CITY HAL.L Spec Fds Search Name GLOCK, INC - E 01-4400-020-20 ARMORER'S COURSE - N. GOR Police Search Name GLOCK, INC Search Name GOPHER STATE ONE CALL E 01-4210-040-40 MAY 2017 SERVICES Code Enforcement/Inspe $276.00 $276.00 $225.00 $300.00 $300.00 $337.50 $400.00 $555.00 $75.00 $150.00 $2,342.50 $173.69 $173.69 $35.96 $46.53 $6.96 $958.28 $35.96 $18.36 $1,102.05 $88.00 $88.00 $22,782.57 $495.00 $23,277.57 $281.60 $330.14 $559.40 $1,171.14 $250.00 $250.00 $471.15 page 06/15/17 3:10 PM Page 3 CITY OF MENDOTA HEIGHTS Claims List SYSTEM CHECKS 06/20/17 PAY Account Comments DEPT Descr Amount Search Name GOPHER STATE ONE CALL $471.15 Search Name GRAINGER E 08-4335-000-00 Search Name GRAINGER Search Name GRANNIS & HAUGE, P.A. E 01-4222-120-20 Search Name GRANNIS & HAUGE, P.A. Search Name HANCO CORPORATION E 01-4330-490-50 Search Name HANCO CORPORATION Search Name HD SUPPLY E 01-4305-070-70 Search Name HD SUPPLY Search Name HILDI INC E 01-4220-110-10 Search Name HILDI INC BLDG MAINT - CITY HALL MAY 2017 SERVICES Spec Fds Police EQUIPMENT REPAIR - STREET Road & Bridges OPERATING SUPPLIES - PARKS Parks & Recreation ACTUARIAL SERVICES Administration Search Name IDENTISYS E 07-4305-000-00 JULY 30 2017 - DEC 31 2017 C Spec Fds G O1-1215 JAN 1 2018 -]ULY 29 2018 CO Search Name IDENTISYS Search Name INDEPENDENT BLACK DIRT CO E 01-4490-050-50 DIRT PICK UP - PARKS Road & Bridges Search Name INDEPENDENT BLACK DIRT CO $30.00 $30.00 $5,891.00 $5,891.00 $18.70 — $18J0 $47.98 $47.98 $615.00 $615.00 $310.50 $310.50 $621.00 $102.00 $102.00 Search Name INNOVATIVE OFFICE SOLUTIONS E 01-4300-110-10 OFFICE SUPPLIES - ADMIN Administration $67.88 E 05-4300-105-15 OFFICE SUPPLIES - ENGINEERI Engineering Enterprise $9.54 E 01-4300-020-20 OFFICE SUPPLIES - PD Police $31.82 E 01-4300-110-10 OFFICE SUPPLIES - ADMIN Administration $26.28 Search Name INNOVATIVE OFFICE SOLUI'IONS $135.52" Search Name INVER GROVE FORD E 01-4330-490-70 EQUIPMENT REPAIR - PARKS Parks & Recreation Search Name INVER GROVE FORD Search Name IRON MOUNTAIN RECORDS MGMT E O1-4490-110-10 MAY 2017 SHREDDING Administration E 01-4490-020-20 MAY 2017 SHREDDING Police Search Name IRON MOUNTAIN RECORDS MGMT Search Name )ANI-KING OF MINNESOTA, INC. E 01-4335-315-30 JUNE 2017 SERVICE - FIRE E 15-4335-310-60 JUNE 2017 SERVICE - PW E O1-4335-310-50 JUNE 2017 SERVICE - PW E 01-4335-310-70 JUNE 2017 SERVICE - PW E 01-4331-020-20 JUNE 2017 SERVICE - PD Search Name JANI-KING OF MINNESOTA, INC. Search Name ]OHNSON CONTROLS Fire Utility Enterprise Road & Bridges Parks & Recreation Police $10.36 $10.36 $19.37 $58.14 $77.51 $200.00 $66.66 $66.67 $66.67 $801.95 $1,201.95 page 06/15/17 3:10 PM Page 4 CITY OF MENDOTA HEIGHTS Claims List SYSTEM CHECKS 06/20/17 PAY Account Comments DEPT Descr Amount E 08-4335-000-00 BLDG MAINT - CIIY HALL Spec Fds $731.00 Search Name JOHNSON CONTROLS $731.00 Search Name KADRMAS, LEE & JACKSON, INC E 22-4220-796-00 DODD RE TRAIL CONSULTING Spec Fds Search Name KADRMAS, LEE & JACKSON, INC Search Name KEEPRS, INC E 01-4410-020-20 Search Name KEEPRS, INC Search Name L M C I T2 E 01-4133-110-10 E 05-4133-105-15 E 15-4133-060-60 E 45-4133-045-45 G 45-1215 E 01-4133-109-09 G 01-1215 G 15-1215 G 05-1215 G 08-1215 E 08-4133-000-00 E 01-4133-070-70 E 01-4133-020-20 E 01-4133-050-50 E 01-4133-031-30 Search Name L M C I T2 UNIFORM - T. SPICER WORKERS' COMP PREMIUM WORKERS' COMP PREMIUM WORKERS' COMP PREMIUM WORKERS' COMP PREMIUM WORKERS' COMP PREMIUM WORKERS' COMP PREMIUM WORKERS' COMP PREMIUM WORKERS' COMP PREMIUM WORKERS' COMP PREMIUM WORKERS' COMP PREMIUM WORKERS' COMP PREMIUM WORKERS' COMP PREMIUM WORKERS' COMP PREMIUM WORKERS' COMP PREMIUM WORKERS' COMP PREMIUM Search Name LAWSON PRODUCi"S, INC Police Administration Engineering Enterprise Utility Enterprise Golf Course City Council Spec Fds Parks & Recreation Police Road & Bridges Fire E 01-4305-050-50 OPERATING SUPPLIES - STREE Road & Bridges E 15-4305-060-60 OPERATING SUPPLIES - UTILIT Utility Enterprise E 01-4305-070-70 OPERATING SUPPLIES - PARKS Parks & Recreation Search Name LAWSON PRODUCTS, INC Search Name LEITNER CO E 01-4330-215-70 E 01-4330-215-70 Search Name LEITNER CO Search Name LILLIE SUBURBAN NEWS E O1-4240-030-30 E O1-4240-050-50 E 01-4490-020-20 E 01-4240-080-80 E 01-4240-110-10 Search Name LILLIE SUBURBAN NEWS Search Name LOGIS E 01-4220-114-14 Search Name LOGIS PARK MAINTENANCE PARK MAINTENANCE MAY 2017 PUBLICATIONS - FIR MAY 2017 PUBLICATIONS - ST MAY 2017 PUBLICATIONS - PD MAY 2017 PUBLICATIONS - PL MAY 2017 PUBLICATIONS - LIQ Parks & Recreation Parks & Recreation Fire Road & Bridges Police Planning Administration PROFESSIONAL IT SERVICES Info Tech Search Name M T I DISTRIBUTING COMPANY $26,018.14 $26,018.14 $10.29 $10.29 $6,244.35 $3,349.65 $7,317.68 $1,420.13 $710.06 $85.58 $76,957.31 $3,658.84 $1,674.82 $1,873.39 $3,746.78 $12,487.85 $77,197.55 $31,220.02 $26,678.99 $254,623.00 $107.60 $107.59 $107.60 $322.79 $250.00 $240.00 $490.00 $374.00 $66.60 $12.75 $216.75 $34.00 $704.10 $891.25 $891.25 E 01-4330-490-70 EQUIPMENT REPAIR - PARKS Parks & Recreation $1,039.02 page ��15/17 3:10 PM Page 5 CITY OF MENDOTA HEIGHTS Claims List SYSTEM CHECKS 06/20/17 PAY Account Comments DEPT Descr Amount Search Name M T I DISTRIBUTING COMPANY $1,039.02 Search Name MENARDS E 01-4330-215-70 E 08-4335-000-00 E 08-4335-000-00 E 08-4335-000-00 E 08-4335-000-00 E 15-4305-060-60 E 08-4335-000-00 E 15-4305-060-60 Search Name MENARDS Search Name METRO SALES E 01-4200-610-20 E 01-4330-030-30 E 01-4330-445-40 E 01-4330-490-70 E 01-4300-080-80 E 15-4330-490-60 E 05-4330-490-15 E 01-4330-490-10 Search Name METRO SALES PARK MAINT BLDG MAINT - CITY HALL BLDG MAINT - CITY HALL BLDG MAINT - CITY HALL BLDG MAINT - CITY HALL OPERATING SUPPLIES - UTILIT BLDG MAINT - CITY HALL OPERATING SUPPLIES - UTILIT MAY 2017 COPIER/PRINTER LE MAY 2017 COPIER/PRINTER LE MAY 2017 COPIER/PRINTER LE MAY 2017 COPIER/PRINTER LE MAY 2017 COPIER/PRINTER LE MAY 2017 COPIER/PRINTER LE MAY 2017 COPIER/PRINTER LE MAY 2017 COPIER/PRINTER LE Search Name MN ST ADMIN ITG TELECOM SRVCE Parks & Recreation Spec Fds Spec Fds Spec Fds Spec Fds Utility Enterprise Spec Fds Utility Enterprise Police Fire Code Enforcement/Inspe Parks & Recreation Planning Utility Enterprise Engineering Enterprise Administration E 01-4210-030-30 APRIL 2017 VOICE SERVICE Fire E 01-4223-020-20 MAY 2017 WAN SERVICE Police E 01-4220-133-10 MAY 2017 WAN SERVICE Administration Search Name MN ST ADMIN ITG TELECOM SRVCE Search Name MN TEAMSTERS LOCAL 320 G O1-2075 JUNE 2017 UNION DUES Search Name MN TEAMSTERS LOCAL 320 Search Name NELCOM CORP E 07-4330-000-00 Search Name NELCOM CORP Search Name NITTI SANITATION INC SIREN REPAIRS Spec Fds E 45-4Z80-045-45 RUBBISH & RECYCLING SERVI Golf Course Search Name NITfI SANITATION INC Search Name NUSS TRUCK & EQUIPMENT E 01-4330-490-50 EQUIPMENT REPAIR - STREET Road & Bridges Search Name NUSS TRUCK & EQUIPMENT Search Name OUT BACK NURSERY, INC. E 08-4335-000-00 LANDSCAPING - CITY HALL Search Name OUT BACK NURSERY, INC. Search Name OXYGEN SERVICE CO E 15-4200-610-60 CYLINDER RENTAL E O1-4200-610-50 CYLINDER RENTAL E 01-4200-610-70 CYLINDER RENTAL Search Name OXYGEN SERVICE CO Spec Fds Utility Enterprise Road & Bridges Parks & Recreation $122.46 $29.71 $11.48 $178.63 $41.80 $74.95 $27.83 $62.73 $549.59 $231.64 $23.16 $165.20 $1.40 $114.16 $2.33 $100.54 $500.31 $1,138.74 $97.98 $130.00 $134.00 $361.98 $663.00 $663.00 $355.80 $355.80 $65.84 $65.84 $170.01 $170.01 $192.75 $192.75 $38.64 $38.65 $38.65 $115.94 page ���15/17 3:10 PM Page 6 CITY OF MENDOTA HEIGHTS Claims List SYSTEM CHECKS 06/20/17 PAY Account Comments DEPT Descr Amount Search Name PITNEY BOWES E 05-4200-610-15 E 01-4200-610-20 E 15-4200-610-60 E 01-4318-080-80 E O1-4200-610-30 E 01-4200-610-70 E 01-4200-610-10 E 01-4318-040-40 Search Name PITNEY BOWES POSTAGE METER RENTAL POSTAGE METER RENTA� POSTAGE METER RENTAL POSTAGE METER RENTAL POSTAGE METER RENTAL POSTAGE METER RENTAL POSTAGE MEfER RENTAL POSTAGE METER RENTAL Search Name PRAIRIE RESTORATIONS, INC. E 08-4335-000-00 LANDSCAPING - CIIY HALL Search Name PRAIRIE RESTORAI'IONS, INC. Search Name R D O EQ CO E O1-4330-490-50 Search Name R D 0 EQ CO Search Name R K HUNTER E 08-4460-000-00 E 08-4460-000-00 Search Name R K HUNTER Engineering Enterprise Police Utility Enterprise Planning Fire Parks & Recreation Administration Code Enforcement/Inspe Spec Fds EQUIPMENT REPAIR - STREEf Road & Bridges LABOR - CITY HALL LL REMOD Spec Fds LABOR - CITY HALL �� REMOD Spec Fds Search Name ROSEVILLE MIDWAY FORD E O1-4330-490-70 EQUIPMENT REPAIR - STREET Parks & Recreation E O1-4330-490-50 EQUIPMENT REPAIR - STREET Road & Bridges Search Name ROSEVI�LE MIDWAY FORD Search Name RUPP, ANDERSON, SQUIRES & WALD E 01-4481-110-10 APRIL 2017 LEGAL SERVICES Administration E 01-4220-120-20 APRIL 2017 LEGAL SERVICES Police Search Name RUPP, ANDERSON, SQUIRES & WALD Search Name SAM S CLUB E 45-4310-210-45 E 45-4334-045-45 E 45-4310-210-45 Search Name SAM S CLUB CONCESSIONS - PAR 3 Golf Course GOLF COURSE MAINTENANCE Golf Course CONCESSIONS - PAR 3 Golf Course Search Name SOUTH METRO FIRE DEPARTMENT E 01-4400-030-30 LEADERSHIP CLASS - J. BOLAN Fire Search Name SOUTH METRO FIRE DEPARTMENT Search Name SPRWS E 01-4425-070-70 E 01-4425-315-30 E 08-4425-000-00 E 15-4425-310-60 E 01-4425-310-70 E 01-4425-310-50 Search Name SPRWS Search Name STREICHERS MAY 2017 SERVICE - 2627 CO Parks & Recreation MAY 2017 SERVICE - 2121 DO Fire MAY 2017 SERVICE - 1101 VIC Spec Fds MAY 2017 SERVICE - 2431 LEX Utility Enterprise MAY 2017 SERVICE - 2431 LEX Parks & Recreation MAY 2017 SERVICE - 2431 LEX Road & Bridges $2.58 $16.75 $14.17 $7.73 $6.44 $3.86 $59.26 $18.03 $128.82 $95.00 $95.00 $225.48 $225.48 $420.00 $220.00 $640.00 $97.65 $283.57 $381.22 $5,418.18 $1,150.50 $6,568.68 $93.32 $109.91 $157.38 $360.61 $10.00 $10.00 $128.80 $86.59 $97.56 $21.31 $21.30 $21.30 $376.86 page 64 06/15/17 3:10 PM Page 7 CITY OF MENDOTA HEIGHTS Claims List SYSTEM CHECKS 06/20/17 PAY Account Comments DEPT Descr Amount E O1-4410-020-20 UNIFORM - P. FLEMING Police $129.98 E O1-4410-020-20 UNIFORM - P. FLEMING Police $239.98 Search Name STREICHERS $369.96 Search Name TITAN MACHINERY E 01-4400-050-50 Search Name TITAN MACHINERY Search Name TRI STATE BOBCAT E 01-4330-490-50 E 01-4330-490-70 E 01-4330-490-70 Search Name TRI STATE BOBCAT TRAINING - N. COURTEAU Road & Bridges EQUIPMENT REPAIR - STREETS Road & Bridges EQUIPMENT REPAIR - PARKS Parks & Recreation EQUIPMENT REPAIR - PARKS Parks & Recreation Search Name US HEALTHWORKS MEDICAL GRP MN E O1-4306-020-20 PRE-EMPLOYEMENT TESTS - P Police E O1-4244-030-30 MEDICAL EXAM - FIRE Fire E 01-4306-020-20 PRE-EMPLOYEMENT TESTS - P Police Search Name US HEALTHWORKS MEDICAL GRP MN Search Name VERIZON WIRELESS E 01-4210-070-70 E O1-4210-110-10 E 01-4210-110-10 E 15-4210-060-60 E 01-4210-050-50 E O1-4210-114-14 E 01-4210-020-20 E 01-4490-080-80 E O1-4210-030-30 E 01-4223-020-20 Search Name VERIZON WIRELESS Search Name VERSATILE VEHICLES JUNE 2017 CELL SERVICE JUNE 2017 CELL SERVICE ]UNE 2017 CELL SERVICE JUNE 2017 CELL SERVICE JUNE 2017 CELL SERVICE JUNE 2017 CELL SERVICE JUNE 20ll CELL SERVICE JUNE 2017 CELL SERVICE JUNE 20ll CELL SERVICE JUNE 20ll CELL SERVICE E 45-4200-610-45 ]UNE 2017 LEASE - PAR 3 Search Name VERSATILE VEHICLES Search Name WASTE MANAGEMENT E 08-4280-000-00 MAY 2017 SERVICE E 15-4280-310-60 MAY 2017 SERVICE E 01-4280-310-50 MAY 2017 SERVICE E 01-4280-310-70 MAY 2017 SERVICE Search Name WASTE MANAGEMENT Search Name ZAHL-PETROLEUM MAINT. CO. E 01-4335-310-70 BLDG REPAIR - PARKS Search Name ZAHL-PETROLEUM MAINT. CO. Parks & Recreation Administration Administration Utility Enterprise Road & Bridges Info Tech Police Planning Fire Police Golf Course Spec Fds Utility Enterprise Road & Bridges Parks & Recreation Parks & Recreation $50.00 $50.00 $588.13 $36.05 $38.51 $662.69 $442.00 $310.00 $422.00 $1,174.00 $185.13 $102.74 $102.74 $51.37 $154.11 $105.03 $793.83 $51.37 $284.78 $245.07 $2,076.17 $600.00 $600.00 $263.40 $132.84 $132.83 $132.83 $661.90 $19.82 $19.82 $407,400.22 page ���15/17 3:10 PM Page 8 page 66 51. C�i I� ��� Nn:> ie �,�1 45� 6� �,; -ax- . wv�w�merdcta heiqh;scom� � ' �_ � CITY OF I`/IEN��TA HEI�HTS DATE: June 20, 2017 TO: Mayor and City Council FROM: Mark McNeill, City Administrator SUBJECT: Revised State Grant Resolution COMMENT: INTRODUCTION At its June 20r meeting, the Council is asked to adopt revisions to Resolution 2017-45, which supports and authorizes submission of a request to the State for bonding money to help fund the reconstruction of former State Highway frontage roads. BACKGROUND Acting on short notice, at the last meeting the Council approved a resolution of support for seeking state assistance in helping to reconstruct more than 2 miles of failing roadway surfaces that were frontage roads for TH 110 and TH 55. Because of the timeframe, staff asked for authority to have the ability to modify components of the resolution if needed, prior to the submittal of the grant application. Some subsequent changes were made; those are on the attached revised 2017-45. In short, the revised memo has separated out the work within the City of Mendota (approximately 700 lineal feet), and reduces the total amount of the project by separating out the City of Mendota's share, from $3,501,596 to $3,255, 679, and the total amount of the grant request from $1.603,798 to $1,480,840. It also corrects the name of the grant program. BUDGET IMPACT None. RECOMMENDATION The Council should adopt the revised Resolution. ACTION REQUIRED If the Council concurs, it should, by motion, adopt the following revised resolution: page 67 RESOLUTION 2017-45 RESOLUTION IN SUPPORT OF A SUBMITTAL TO THE STATE OF MINNESOTA FOR A CAPITAL BONDING REQUEST FOR THE FUNDING OF THE RECONTRUCTION OF PORTIONS OF FORMER MNDOT ROADWAYS IN THE CITY OF MENDOTA HEIGHTS, MINNESOTA Mark McNeill City Administrator page 68 CITY OF MENDOTA HEIGHTS DAKOTA COUNTY, MINNESOTA RESOLUTION 2017-45 RESOLUTION IN SUPPORT OF A SUBMITTAL TO THE STATE OF MINNESOTA FOR A CAPITAL BONDING REQUEST FOR THE FUNDING OF THE RECONTRUCTION OF PORTIONS OF FORMER MNDOT ROADWAYS IN THE CITY OF MENDOTA HEIGHTS, MINNESOTA WHEREAS, several streets and highways in the City of Mendota Heights have previously been part of the frontage road system for the State of Minnesota's TH 110 and TH 55, to wit: • Center Pointe Curve, between Lexington Avenue and Lemay Lake Road, • Carmen Lane and the east-west portion of Crown Point Drive, to its intersection with TH 110, • Dakota Drive, from Lexington Avenue to its easterly terminus, • Waters Drive, from TH 55 to its northerly terminus, • Victoria Curve, from Lexington Avenue to TH 13; and, WHEREAS, portions of the aforementioned Victoria Curve and Center Pointe Curve lie within the City of Mendota; and, WHEREAS, these streets were variously turned back from the State of Minnesota to the Cities of Mendota and Mendota Heights in 2004, 2008, and 2010, and had not been brought up to acceptable engineering standards at the time of said turn backs; and, WHEREAS, each of these streets and roadways now showing significant weathering and traffic-related wear in the form of cracking, rutting, and overall deterioration since being turned back to the Cities of Mendota and Mendota Heights; and, WHEREAS, the total lengths of these streets in need of repair or reconstruction of these streets and roadways for the Cities of Mendota and Mendota Heights' portions total 11,937 lineal feet, and are estimated by the City of Mendota Heights Engineering staff to cost an estimated $3,255,679, and, WHEREAS, the traditional method of funding the needed reconstruction of said sections of these streets and roadways will not work, as one half of the assessable frontages are the State —owned Rights of Way for Trunk Highway 110, and Trunk Highway 55, and none of the approximately 700 lineal feet of this amount that lie within the City of Mendota is assessable; and page 69 WHEREAS, the State of Minnesota has traditionally not accepted assessments as participation in the funding of street reconstruction or improvement activities; and WHEREAS, the only viable method of funding the reconstruction of these sections of streets and roadways is to seek funding through the State of Minnesota's Capital Budget program for the one-half of roadway reconstruction costs which would otherwise be assessed to the frontage which is owned by the Minnesota Department of Transportation; and WHEREAS, the amount of funding sought from the State of Minnesota through the 2018 Capital Bonding request by Mendota Heights is $1,385,385, and, WHEREAS, amount of funding sought be the City of Mendota is $95,455, for a combined total by the two cities of $1,480,840. NOW THEREFORE BE IT RESOLVED by the City Council of the City of Mendota Heights that it hereby supports and authorizes the submittal of a Capital Bonding request from the Minnesota Management and Budget Office funding, for a portion of the Capital Bonding for Local Units of Government to assist in the reconstruction of the "turned back" portions of the afore-mentioned streets and roadways. BE IT FURTHER RESOLVED that the City of Mendota Heights will work in concert with the City of Mendota to mutually accomplish these projects. Adopted by the City Council of the City of Mendota Heights this 6rh day of June, 2017. ATTEST Lorri Smith, City Clerk CITY COUNCIL CITY OF MENDOTA HEIGHTS Neil Garlock, Mayor STREET IMPROVEMENT PLAN 2018-2023 CITY OF MENDOTA HEIGHTS PROJECT NAME: MnDOT Legacy Frontage Roads PROJECT #: p 70 ►i■�La■ TOTAL COST: $3,255,679 PROJECT TYPE: Reconstruction Project Description Complete pavement removal and replacement of these former MNDOT Highway Frontage Roads now serving as streets in the City of Mendota Heights: � Center Pointe Curve, between Lexington Avenue and TH 13 � Carmen Lane and the east-west portion of Crown Point Drive, to its intersection with TH 110 � Dakota Drive, from Lexington Avenue to its easterly terminus � Waters Drive, from TH 55 to its northerly terminus � Victoria Curve, from Lexington Avenue to TH 13 Project History These streets were originally Minnesota Trunk Highway Frontage Roads. The histories include: Street Trunk Year Turned MSAS Hi hwa Constructed Back Carmen Lane 110 1969 2010 No Centre Pointe Curve 110 1987/93 2010 2016 Dakota Drive 110 1969 2010 No Victoria Curve 110 1987/1993 2008 2014 Waters Drive 55 1993 2004 No Project Justification Project Location .�--^�-�=n� . . —.., �j�, .:.:.::. _ , - , � �`� .. ,'::;� . ;:,` , .., � - � �:. � , <� y :. _ Maintenance costs are increasing; streets are cracking, rutting, and showing wear due to age, traffic, and weathering. Urban section construction (curb and gutter) installed on only portions of the streets. The total lineal feet to be replaced amounts to 11,937 feet, of which 700 feet lie within the City of Mendota. Mendota has turned maintenance responsibilities over to the City of Mendota Heights. The traditional funding options of assessing to benefitted properties will not work in this case, as 50% of the frontage is comprised of TH 110 and TH 55; MNDOT does not participate in local assessments. Without State Bonding assistance, these streets will not be able to be reconstructed, resulting in further deterioration, and increased safety and maintenance concerns. While the Mendota City Council is supportive of the project, Mendota does not do maintenance on its portions of these streets; that is the responsibility of Mendota Heights. Mendota has no benefitted properties to assess, so its portion of assessments will fall to Mendota Heights. Pro'ect Costs 2018 2019 2020 2021 2022 Plannin /Desi n $542,613 Construction/Maintenance $2,713,066 Total $0 $3,255,679 $0 $0 $0 2023 $0 Total $542,613 $2,713,066 $3,255,679 Total $0 $3,255,679 $0 $0 $0 $0 $3,255,679 � � � m page 71 i1C1 victer a ���rve Ne��d; 7a• 651_�152'�8�0 phone a.. � a� �. ,. wv�w�merdcta heiqn;scom CITY OF I`/IEN��TA HEI�HTS DATE: TO: FROM: SUBJECT: BACKGROUND June 20, 2017 Mayor, City Council and City Administrator Kristen Schabacker, Finance Director 2016 Audit Presentation BerganKDV has completed the audit for 2016. The reports for 2016 are the Annual Report & Basic Financial Statements and the Communications Letter. These reports are included in your packet. Matt Mayer from KDV will be at tonight's meeting to review the Annual Audit Report for 2016. BUDGET IMPACT There is no budget impact. RECOMMENDATION Accept the review and ask any questions you may have. page 72 8a. � � #� � cir�r o� � fL'lE_.RI[�C 7 f A f--if._IC�h-{ f� Request for City Council Action MEETING DATE: June 20, 2017 TO: Mayor and City Council FROM: Mark McNeill, City Administrator Tim Benetti, Community Development Director SUBJECT: Approve the Modifications to the Development Program for Municipal Development District No. 1, and establishment of Tax Increment Financing District No. 2— AND — Approve an Interfund Loan Agreement Related to Tax Increment Financing District No. 2 Introduction The City Council is asked to conduct a public hearing, and, if appropriate, adopt the following items necessary for the creation of a Tax Increment Financing (TIF) District. This TIF District is necessary for the redevelopment of the Larson Greenhouse and Mendota Motel properties, located at 2160 and 2180 Highway 13: The requested actions are: 1) Approve the Modifications to the Development Program for Municipal Development District No. 1, and establishment of Tax Increment Financing District No. 2(adopt a resolution and the plan); and 2) Approve an Interfund Loan Agreement related to Tax Increment Financing District No. 2(adopt a resolution). Discussion The City is creating a redevelopment TIF district on two properties located at 2160 and 2180 Highway 13, locally known as the [former] Larson Garden Center and Mendota Motel. Michael Development has submitted a proposal for the redevelopment of these two sites, which will ultimately be 69 unit market- rate apartment buildings. The first phase would begin on the motel site, followed within a year by the second phase on the garden center property. The developer has requested tax increment assistance to offset the high costs of land acquisition, demolition, environmental and soil remediation, and overall site improvements. On February 9, 2017 and March 21, 2017, the City Council met, and was informed that Michael Development had secured the rights to acquire and redevelop the motel and garden center sites. Staff indicated the developer had asked the city to explore and investigate possible financial assistance to redevelop these two commercial property sites. On May 2, 2017, the City Council approved the setting of a public hearing for June 20, 2017, whereby the Council would give official consideration in the establishing this new TIF District No. 2. This action was subject to a follow-up Council Workshop session which was held on May 16`'', whereby an informal presentation and initial analysis of this TIF No. 2 was presented. On May 16`'' the City Council held the follow-up Work Session. City staff and consultants ���e�t�d the developer's proposed redevelopment plan; provided a very thorough presentation on the background and initial analysis and discussed the steps to creating a new TIF District on these properties. They addressed and answered a number of questions. The City Council expressed general support of this new redevelopment plan, and directed staff to continue working with the city's legal and financial consultants to ultimately establish the proposed TIF District. Attached to this memo report is an executive summary of the new Tax Increment Financing District No. 2, along with a copy of the final draft of the "Ta� Increment Financing Plan for the Establishment of Tc� Increment Financing District No. 2 within Municipal Development District No. 1." Upon the successful approval and adoption of these two resolution items, the city attorney will follow-up by drafting a Contract for Private Development (also referred to as the "Developer's Agreement") after the TIF is approved by the City CounciL The Developer's Agreement would memorialize the TIF Note payments, and ensure that the developer is being reimbursed for TIF-eligible costs. Once the developer feels he has a project ready to go, the Development Agreement will be brought back at a future meeting to give City Council final consideration and approval. It should be noted that at the May 23rd Planning Commission meeting, the Commission was presented with a dra$ Tax Increment Financing Plan prepared by the City's financial consultant Ehlers & Associates, along with a brief presentation on the creation of this new TIF District No. 2, and a request to consider and adopt a separate resolution supporting the creation of said TIF district. Although this matter was not presented or noticed as an official public hearing item, the Planning Chair asked to conduct a hearing, which was opened and no comments received from the public. Upon close of the hearing, the Commission determined the new TIF District No. 2 conforms with the general plans for the development and redevelopment of the City as described in the comprehensive plan for the City; and thereafter adopted Planning Commission Resolution No. 2017-01 (by 5-0 vote), a resolution Supporting the Modification to the Development Program for Municipal Development District No. 1 and Establishment of Tax Increment Financing District No. 2(attached hereto). Bud�et Imnact The Developer previously deposited a$15,000 escrow with the City to pay for any initial legal and fiscal consultant fees in the review, analysis and creation of this TIF district, along with the preparation of all documents related to this district creation. Once the TIF District is approved, any additional costs (exceeding the $15,000) will be eligible for reimbursement by means of up to a 10% administration fee that may be collected from the proceeds of the District. Along with the escrow fund, the Interfund Loan Agreement under this consideration allows the City to fund additional up-front expenditures, typically administrative costs (assuming the City intends to get re- paid for those costs out of subsequent tax increment revenues). The attached resolution has an amount of $25,000 as a reference point. The Interfund Loan resolution is a"safeguard" to allow the City to be made whole for any expenditures it undertakes in regards to this TIF District. Recommendation We recommend that the City Council approve the resolutions contained herein, which would establish the TIF District. Action Required Upon the close of the public hearing and discussion related to these items, the City Council may adopt by simple motion the following resolutions: • Resolution No. 2017-48, a Resolution Adopting a Modification to the Development Pro ram for Municipal Development District No. 1; Establishing Tax Increment Financing I�i���c�`�To. 2 Therein; and Adopting a Tax Increment Financing Plan Therefor; and • Resolution No. 2017�9, a Resolution Authorizing an Interfund Loan for Advance of Certain Costs in Connection with Tax Increment Financing District No. 2. Attachments - Resolution No. 2017-48 & No. 2017-49 - Planning Commission Res. No. 2017-01 - Executive Summary Tax Increment Financing District No. 2 - Tax Increment Financing Plan — TIF No. 2 page 75 CITY OF MENDOTA HEIGHTS DAKOTA COUNTY, MINNESOTA RESOLUTION NO. 2017-48 RESOLUTION ADOPTING A MODIFICATION TO THE DEVELOPMENT PROGRAM FOR MUNICIPAL DEVELOPMENT DISTRICT NO. 1; ESTABLISHING TAX INCREMENT FINANCING DISTRICT NO. 2 THEREIN; AND ADOPTING A TAX INCREMENT FINANCING PLAN THEREFOR BE IT RESOLVED by the City Council (the "Council") of the City of Mendota Heights, Minnesota (the "City"), as follows: Section l. Recitals 1.O1. The Council has heretofore established Municipal Development District No. 1 and adopted the Development Program therefor. It has been proposed by the City that the City adopt a Modification to the Development Program for Municipal Development District No. 1(the "Development Program Modification") and establish Tax Increment Financing District No. 2(the "District") therein and adopt a Tax Increment Financing Plan (the "TIF Plan") therefor (the Development Program Modification and the TIF Plan are referred to collectively herein as the "Program and Plan"); all pursuant to and in conformity with applicable law, including Minnesota Statutes, Sections 469.124 to 469.133 and Sections 469.174 to 469.1794, all inclusive, as amended, (the "Act") all as reflected in the Program and Plan, and presented for the Council's consideration. 1.02. The City has investigated the facts relating to the Program and Plan and has caused the Program and Plan to be prepared. 1.03. The City has performed all actions required by law to be performed prior to the establishment of the District and the adoption and approval of the proposed Program and Plan, including, but not limited to, notification of the Dakota County Commissioner who represents the property underlying the District, notification of Dakota County and Independent School District No. 197, each having taxing jurisdiction over the property to be included in the District, a review of and written comment on the Program and Plan by the City Planning Commission, and the holding of a public hearing by the Council upon published notice as required by law. 1.04. Certain written reports (the "Reports") relating to the Program and Plan and to the activities contemplated therein have heretofore been prepared by City staff and consultants and submitted to the Council and made a part of the City files and proceedings on the Program and Plan. The Reports, including the redevelopment qualifications reports and planning documents, include data, information and substantiation constituting or relating to the basis for the other findings and determinations made in this Resolution. The Council hereby confirms, ratifies and adopts the Reports, which are hereby incorporated into and made as fully a part of this Resolution to the same extent as if set forth in full herein. page 76 1.05 The City is not modifying the boundaries of Municipal Development District No. l, which are coterminous with the corporate boundaries of the City, but is modifying the Development Program therefor. Section 2. Findin�s for the Ado�tion and A�roval of the Develo�ment Pro_�ram Modification. 2.01. The Council approves the Development Program Modification, and specifically finds that: (a) the land within the Project area would not be available for redevelopment without the financial aid to be sought under the Development Program; (b) the Development Program, as modified, will afford maximum opportunity, consistent with the needs of the City as a whole, for the development of the Project by private enterprise; and (c) the Development Program, as modified, conforms to the general plan for the development of the City as a whole. Section 3. Findin�s for the Establishment of Tax Increment Financin� District No. 2. 3.OL The Council hereby finds that the District is in the public interest and is a "redevelopment district" under Section 469.174, Subd. 10 of the Act. 3.02. The Council further finds that (i) (iv) 3.03 the proposed redevelopment described in the TIF Plan would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future; the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the District permitted by the TIF Plan; the TIF Plan conforms to the general plan for the development or redevelopment of the City as a whole; and the TIF Plan will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development or redevelopment of the District by private enterprise. The Council further finds, declares and determines that it made the above findings stated in this Section and has set forth the reasons and supporting facts for each determination in writing, attached hereto as Exhibit A. 3.04. The City elects to calculate fiscal disparities for the District in accordance with Section 469.177, Subd. 3, clause b of the Act, which means the fiscal disparities contribution would be taken from inside the District. Section 4. Public Purpose page 77 4.OL The adoption of the Program and Plan conforms in all respects to the requirements of the Act and will help fulfill a need to develop an area of the City which is already built up, to provide employment opportunities, to improve the tax base and to improve the general economy of the State and thereby serves a public purpose. For the reasons described in Exhibit A, the City believes these benefits directly derive from the tax increment assistance provided under the TIF Plan. A private developer will receive only the assistance needed to make this development financially feasible. As such, any private benefits received by a developer are incidental and do not outweigh the primary public benefits. Section 5. Approval and Adoption of the Program and Plan S.OL The Program and Plan, as presented to the Council on this date, including without limitation the findings and statements of objectives contained therein, are hereby approved, ratified, established, and adopted and shall be placed on file in the office of the City Administrator. 5.02. The staff of the City, the City's advisors and legal counsel are authorized and directed to proceed with the implementation of the Program and Plan and to negotiate, draft, prepare and present to this Council for its consideration all further plans, resolutions, documents and contracts necessary for this purpose. 5.03 The Auditor of Dakota County is requested to certify the original net tax capacity of the District, as described in the Program and Plan, and to certify in each year thereafter the amount by which the original net tax capacity has increased or decreased; and the City is authorized and directed to forthwith transmit this request to the County Auditor in such form and content as the Auditor may specify, together with a list of all properties within the District for which building permits have been issued during the 18 months immediately preceding the adoption of this Resolution. 5.04. The City is further authorized and directed to file a copy of the Program and Plan with the Commissioner of the Minnesota Department of Revenue and the Office of the State Auditor pursuant to Section 469.175, Subd. 4a of the Act. Adopted by the City Council of the City of Mendota Heights this 20rh day of June, 2017. ATTEST Lorri Smith, City Clerk CITY COUNCIL CITY OF MENDOTA HEIGHTS Neil Garlock, Mayor page 78 EXHIBIT A RESOLUTION NO. 2017-48 The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan (the "TIF Plan") for Tax Increment Financing District No. 2(the "District"), as required pursuant to Minnesota Statutes, Section 469.175, Subdivision 3 are as follows: 1. Finding that Tax Increment Financing District No. 2 is a redevelopment district as defined in M.S., Section 469.174, Subd. 10. The District consists of nine parcels, with plans to redevelop the area for residential rental housing purposes. Parcels consisting of at least 70 percent of the area of the District are occupied by buildings, streets, utilities, paved or gravel parking lots, or other similar structures and more than 50 percent of the buildings, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance. These conditions are reasonably distributed throughout the District. (See Appendix F of the TIF Plan.) 2. Finding that the proposed development, in the opinion of the City Council, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax incrementfinancing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the District permitted by the TIF Plan. The proposed development, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future: This finding is supported by the fact that the redevelopment proposed in the TIF Plan meets the City's objectives for redevelopment. Due to the high cost of redevelopment on the parcels currently occupied by substandard buildings and poor soils, the limited amount of property available for new development, and the cost of financing the proposed improvements, this project is feasible only through assistance, in part, from tax increment financing. The developer was asked for and provided a letter and a proforma as justification that the developer would not have gone forward without tax increment assistance. (See attachment in Appendix G of the TIF Plan.) The increased market value of the site that could reasonably be expected to occur without the use o f tax increment financing would be less than the increase in market value estimated to result from the proposed development after subtracting the present value o f the projected tax increments for the maximum duration of the District permitted by the TIF Plan: This finding is justified on the grounds that the cost of acquisition, soils corrections, site and public improvements and utilities significantly add to the total redevelopment cost. Historically, site and public improvement costs in this area have made redevelopment infeasible without tax increment assistance. The City reasonably determines that no other page 79 redevelopment of similar scope is anticipated on this site without substantially similar assistance being provided to the development. Therefore, the City concludes as follows: The City's estimate of the amount by which the market value of the entire District will increase without the use of tax increment financing is $0, or a nominal amount equivalent to inflation over time. b. If the proposed development occurs, the total increase in market value will be approximately $18,481,300. The present value of tax increments derived from the District for the maximum duration of the District permitted by the TIF Plan is estimated to be $4,314,609. d. Even if some development other than the proposed development, as proposed in the TIF Plan, were to occur, the Council finds that no alternative would occur that would produce a market value increase greater than $14,166,691 (the amount in clause b less the amount in clause c) without tax increment assistance. 3. Finding that the TIF Plan for the District conforms to the general plan for the development or redevelopment of the municipality as a whole. The Planning Commission reviewed the TIF Plan and found that the TIF Plan conforms to the general development plan of the City. 4. Finding that the TIFPIan for the District will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development or redevelopment ofMunicipal Development District No. 1 by private enterprise. The project to be assisted by the District will result in increased employment in the City and the State of Minnesota, the renovation of substandard properties, increased tax base of the State and will add a high quality development to the City. Through the implementation of the TIF Plan, the City will increase the availability of safe and decent life-cycle housing in the City. page 80 CITY OF MENDOTA HEIGHTS DAKOTA COUNTY, MINNESOTA RESOLUTION NO. 2017-49 RESOLUTION AUTHORIZING AN INTERFUND LOAN FOR ADVANCE OF CERTAIN COSTS IN CONNECTION WITH TAX INCREMENT FINANCING DISTRICT NO. 2 BE IT RESOLVED by the City Council (the "Council") of the City of Mendota Heights, Minnesota (the "City"), as follows: Section l. Back_r� ound. l.OL The City has heretofore approved the establishment of Tax Increment Financing District No. 2(the "TIF District") within Municipal Development District No. 1(the "Project"), and has adopted a Tax Increment Financing Plan (the "TIF Plan") for the purpose of financing certain improvements within the Project. 1.02. The City has determined to pay for certain costs identified in the TIF Plan consisting of land/building acquisition, site improvements/preparation, public utilities, streets and sidewalks, other qualifying improvements, interest and administrative costs (collectively, the "Qualified Costs"), which costs may be financed on a temporary basis from City funds available for such purposes. 1.03. Under Minnesota Statutes, Section 469.178, Subd. 7, the City is authorized to advance or loan money from the City's general fund or any other fund from which such advances may be legally authorized, in order to finance the Qualified Costs. 1.04. The City intends to reimburse itself for the Qualified Costs from tax increments derived from the TIF District in accordance with the terms of this Resolution (which terms are referred to collectively as the "Interfund Loan"). Section 2. Terms of Interfund Loan. 2.OL The City hereby authorizes the advance of up to $25,000 from any City fund or so much thereof as may be paid as Qualified Costs, whichever is greater (the "Principal Amount"). The City shall reimburse itself for such advances from tax increment revenues received, together with interest at the rate stated below. Interest accrues on the Principal Amount from the date of each advance. The maximum rate of interest permitted to be charged is limited to the greater of the rates specified under Minnesota Statutes, Section 270C.40 or Section 549.09 as of the date the loan or advance is authorized, unless this Resolution states that the maximum interest rate will fluctuate as the interest rates specified under Minnesota Statutes, Section 270C.40 or Section 549.09 are from time to time adjusted. The interest rate shall be 4.00% and will not fluctuate. page 81 2.02. Principal and interest ("Payments") on the Interfund Loan shall be paid semi- annually on each August 1 and February 1(each a"Payment Date"), commencing on the first Payment Date on which the Authority has Available Tax Increment (defined below) (2019), or on any other dates determined by the City Administrator, through the date of last receipt of tax increment from the TIF District (2044), which has a maximum term of 26 years. 2.03. Payments on this Interfund Loan are payable solely from "Available Tax Increment," which shall mean, on each Payment Date, tax increment available after other obligations have been paid, or as determined by the City Administrator, generated in the preceding six (6) months with respect to the property within the TIF District and remitted to the City by Dakota County, all in accordance with Minnesota Statutes, Sections 469.174 to 469.1794, all inclusive, as amended. Payments on this Interfund Loan may be subordinated to any outstanding or future bonds, notes or contracts secured in whole or in part with Available Tax Increment, and are on parity with any other outstanding or future interfund loans secured in whole or in part with Available Tax Increment. 2.04. The principal sum and all accrued interest payable under this Interfund Loan are pre- payable in whole or in part at any time by the City without premium or penalty. No partial prepayment shall affect the amount or timing of any other regular payment otherwise required to be made under this Interfund Loan. 2.05. This Interfund Loan is evidence of an internal borrowing by the City in accordance with Minnesota Statutes, Section 469.178, Subd. 7, and is a limited obligation payable solely from Available Tax Increment pledged to the payment hereof under this Resolution. This Interfund Loan and the interest hereon shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including, without limitation, the City. Neither the State of Minnesota, nor any political subdivision thereof shall be obligated to pay the principal of or interest on this Interfund Loan or other costs incident hereto except out of Available Tax Increment, and neither the full faith and credit nor the taxing power of the State of Minnesota or any political subdivision thereof is pledged to the payment of the principal of or interest on this Interfund Loan or other costs incident hereta The City shall have no obligation to pay any principal amount of the Interfund Loan or accrued interest thereon, which may remain unpaid after the final Payment Date. 2.06. The City may amend the terms of this Interfund Loan at any time by resolution of the City Council, including a determination to forgive the outstanding principal amount and accrued interest to the extent permissible under law. Section 3. Effective Date. This Resolution is effective upon the date of its approval. page 82 Adopted by the City Council of the City of Mendota Heights this 20rh day of June, 2017. ATTEST Lorri Smith, City Clerk CITY COUNCIL CITY OF MENDOTA HEIGHTS Neil Garlock, Mayor page 83 CITX OI' n%IF;NDOTA HEIGHTS DAKOTA CpUNTY, MINN�SOTA PLANNING CQMMISSION RESOLUTIpN NO. 2017-01 RESOLUTION OF THI; CITY OF MENDOTA HEIGHTS PLANNING COMMISSION FINDING THAT A n�IODIFICATION TQ THE llEVELOPMENT PROGRAM FQR MUNICIPAL DEVELOPMENT DISTRICT NO. 1 AND A TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 2 CONFORMS TO THE GENERAL PLANS FOR THE nEVELOPMENT ANA REDEVELOPMENT OF THE CITY OF MENAOTA HEIGHTS WHEREAS, the City of Mendota Heights (the "City") has proposed to adopt a Modification to the Development Program for Municipal Development I�istrict No. 1(the "Development Program Modification") and a Tax Increment Financing Plan for Tax Increment Financing District No. 2(the "TIF Plan") therefor (the Development Program Modification and the TIF Plan are referred to collectively herein as the "Program and Plan") and has submitted the Program and Plan to the City Planning Commission (the "Commission") pursuant to Minnesota Statutes, Section 469.175, Subd. 3, and WHEREAS, the Commission has reviewed the Program and Plan to determine their conformity with the general plans for the development and redevelopment of the City as described in the comprehensive plan for the City. NOW, THEREFORE, BE IT RESOLVED by the Commission that the Program and Plan conform to the genet•al plans for the development and redevelopment of the City as a whole. Adopted by the Planning Commission of Mendota Heights on this 23`d day of May, 2017. PLANNING COMMISSION CITY OF NiE1�i.I�OTA HELG Litton I'ield; Jr., C ATTEST: i � -`� � �=; � - ° '' � � �._ � ��` � � � , ��� � - :� % Tim Benetti, Secretary page 84 Tax Increment Financing District Overview City of Mendota Heights Tax Increment Financing District No. 2 The following summary contains an overview of the basic elements of the Tax Increment Financing Plan for Tax Increment Financing District No. 2. More detailed information on each of these topics can be found in the complete Tax Increment Financing Plan. Proposed action: Establishment of Tax Increment Financing District No. 2(the "District") and the adoption of a Tax Increment Financing Plan (the "TIF Plan"). Modification to the Development Program for Municipal Development District No. 1 includes the establishment of Tax Increment Financing District No. 2, which represents a continuation of the goals and objectives set forth in the Development Program for Development District No. 1. Type of TIF District A redevelopment district Parcel Numbers: 27-28400-01-080 27-75200-OS-020 27-75200-OS-O50 27-75200-OS-110 27-75200-OS-380 27-75200-OS-421 27-75200-OS-070 27-75200-OS-160 27-75200-OS-420 Proposed The District is being created to facilitate the construction of approximately Development: 138 apartment units within the City in 2 phases. Please see Appendix A of the TIF Plan for a more detailed proiect description. Maximum duration: The duration of the District will be 25 years from the date of receipt of the first increment (26 years of increment). The City expects the date of first tax increment to be 2019. It is estimated that the District, including any modifications of the TIF Plan for subsequent phases or other changes, would terminate after December 31, 2044, or when the TIF Plan is satisfied. Estimated annual tax Up to $436,728 increment Authorized uses page 85 The TIF Plan contains a budget that authorizes the maximum amount that may be expended: Land/Building Acquisition........... Site Improvements/Preparation.... Utilities ......................................... Other Qualifying Improvements .. Administrative Costs (up to 10%) PROJECT COSTS TOTAL......... Interest......................................... PROJECT COSTS TOTAL...... .. $2,000,000 ..$1,000,000 .....$700,000 ..... $944,436 .....$773,149 ..$5,417,585 .. 3 087 057 ..$8,504,642 See Subsection 2-10, on page 2-6 of the TIF Plan for the full budget authorization. Form of financing: The project is proposed to be financed by a pay-as-you-go note and interfund loan. Administrative fee: Up to 10% of annual increment, if costs are justified. Interfund Loan If the City wants to pay for administrative expenditures from a tax increment Requirement fund, it is recommended that a resolution authorizing a loan from another fund be passed PRIOR to the issuance of the check. 4 Year Activity Rule After four years from the date of certification of the District one of the (� 469.176 Subd. 6) following activities must ha�e been commenced on each parcel in the District • Demolition • Rehabilitation • Renovation • Other site preparation (not including utility services such as sewer and water) If the activity has not been started by approximately June 2021, no additional tax increment may be taken from that parcel until the commencement of a qualifying activity. 5 Year Rule Within 5 years of certification revenues derived from tax increments must be (� 469.1763 Subd. 3) expended or obligated to be expended. 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'"'v,i..., � page 87 As ofJune IS, 2017 Draft for Public Hearing Modification to the Development Program for Municipal Development District No. 1 and the Tax Increment Financing Plan for the establishment of Tax Increment Financing District No. 2 (a redevelopment district) within Municipal Development District No. 1 City of Mendota Heights Dakota County State of Minnesota Public Hearing: June 20, 2017 Adopted: Prepared by: EHLERS & ASSOCIATES, INC. EH L E F�S 306 651 697 8500 DrX e6 Ro6s97i18e5, 5inn�teh e5s inc1com page 88 Table of Contents (for reference purposes only) Section 1- Modification to the Development Program for Municipal Development District No. 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-1 Foreword............................................................. 1-1 Section 2- Tax Increment Financing Plan for Tax Increment Financing District No. 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-1 Subsection 2-1. Foreword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-1 Subsection 2-2. Statutory Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-1 Subsection 2-3. Statement of Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-1 Subsection 2-4. Development Program Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-1 Subsection 2-5. Description of Property in the District and Property To Be Acquired . 2-2 Subsection 2-6. Classification of the District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-2 Subsection 2-7. Duration and First Year of Tax Increment of the District ........... 2-4 Subsection 2-8. Original Tax Capacity, Tax Rate and Estimated Captured Net Tax Capacity Value/Increment and Notification of Prior Planned Improvements . . . . . . . . . . . . . . . . 2-4 Subsection 2-9. Sources of Revenue/Bonds to be Issued . . . . . . . . . . . . . . . . . . . . . . 2-5 Subsection 2-10. Uses of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-6 Subsection 2-11. Fiscal Disparities Election . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-6 Subsection 2-12. Business Subsidies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-7 Subsection 2-13. County Road Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-8 Subsection 2-14. Estimated Impact on Other Taxing Jurisdictions . . . . . . . . . . . . . . . . . 2-8 Subsection 2-15. Supporting Documentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-10 Subsection 2-16. Definition of Tax Increment Revenues . . . . . . . . . . . . . . . . . . . . . . . 2-10 Subsection 2-17. Modifications to the District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-10 Subsection 2-18. Administrative Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-11 Subsection 2-19. Limitation of Increment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-12 Subsection 2-20. Use of Tax Increment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-12 Subsection 2-21. Excess Increments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-13 Subsection 2-22. Requirements for Agreements with the Developer . . . . . . . . . . . . . . 2-13 Subsection 2-23. Assessment Agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-14 Subsection 2-24. Administration of the District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-14 Subsection 2-25. Annual Disclosure Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-14 Subsection 2-26. Reasonable Expectations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-14 Subsection 2-27. Other Limitations on the Use of Tax Increment . . . . . . . . . . . . . . . . . 2-14 Subsection 2-28. Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-15 Appendix A Project Description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-1 Appendix B Map of Municipal Development District No. 1 and the District . . . . . . . . . . . . . . . . . . . . . B-1 Appendix C Description of Property to be Included in the District . . . . . . . . . . . . . . . . . . . . . . . . . . . . C-1 Appendix D Estimated Cash Flow for the District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . D-1 page 89 Appendix E Minnesota Business Assistance Form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E-1 Appendix F Redevelopment Qualifications for the District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-1 Appendix G Findings Including But/For Qualifications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . G-1 Section 1- Modification to the Development Program for Municipal Development District No. 1 Foreword page 90 The following text represents a Modification to the Development Program for Municipal Development District No. 1. This modification represents a continuation of the goals and objectives set forth in the Development Program for Municipal Development DistrictNo. 1. Generally, the substantive changes include the establishment of Tax Increment Financing District No. 2. For further information, a review of the Development Program for Municipal Development District No. 1 is recommended. It is available from the City Administrator at the City of Mendota Heights. Other relevant information is contained in the Tax Increment Financing Plans for the Tax Increment Financing Districts located within Municipal Development District No. 1. City of Mendota Heights Modification to the Development Program for Municipal Development District No. 1 1-1 page 91 Section 2- Tax Increment Financing Plan for Tax Increment Financing District No. 2 Subsection 2-1. Foreword The City of Mendota Heights (the "City"), staff and consultants have prepared the following information to expedite the establishment of Tax Increment Financing District No. 2(the "District"), a redevelopment tax increment financing district, located in Municipal Development District No. 1. Subsection 2-2. Statutory Authority Within the City, there exist areas where public involvement is necessary to cause development or redevelopment to occur. To this end, the City has certain statutory powers pursuant to Minnesota Statutes ("M.S.'), Sections 469.124 to 469.133, inclusive, as amended, and M.S., Sections 469.174 to 469.1794, inclusive, as amended (the "Tax Increment Financing Act" or "TIF Act"), to assist in financing public costs related to this project. This section contains the Tax Increment Financing Plan (the "TIF Plan") for the District. Other relevant information is contained in the Modification to the Development Program for Municipal Development District No. 1. Subsection 2-3. Statement of Objectives The District currently consists of nine parcels of land and adjacent and internal rights-of-way. The District is being created to facilitate the construction of approximately 138 apartment units in the City. Please see Appendix A for further District information. The City has not entered into an agreement but anticipates entering into an agreement with Michael Development of Minnesota, LLC. Development is anticipated to occur in two phases. The first phase of approximately 69 apartments is anticipated to begin in mid-2017 and be complete in 2018. The second phase of approximately 69 apartments is anticipated to begin in mid-2018 and be complete in 2019. This TIF Plan is expected to achieve many of the objectives outlined in the Development Program for Municipal Development District No. 1. The activities contemplated in the Modification to the Development Program and the TIF Plan do not preclude the undertaking of other qualified development or redevelopment activities. These activities are anticipated to occur over the life of Municipal Development District No. 1 and the District. Subsection 2-4. Development Program Overview 1. Property to be Acquired - Selected property located within the District may be acquired by the City and is further described in this TIF Plan. Relocation - Relocation services, to the e�tent required by law, are available pursuant to M.S., Chapter 117 and other relevant state and federal laws. 3. Upon approval of a developer's plan relating to the project and completion of the necessary legal requirements, the City may sell to a developer selected properties that it may acquire within the District or may lease land or facilities to a developer. 4. The City may perform or provide for some or all necessary acquisition, construction, relocation, demolition, and required utilities and public street work within the District. City of Mendota Heights Tax Increment Financing Plan for Tax Increment Financing District No. 2 2-1 Subsection 2-5 page 92 Description of Property in the District and Property To Be Acquired The District encompasses all property and adjacent rights-of-way and abutting roadways identified by the parcels listed in Appendix C ofthis TIF Plan. Please also see the map in Appendix B for further information on the location of the District. The City may acquire any parcel within the District including interior and adjacent street rights of way. Any properties identified for acquisition will be acquired by the City only in order to accomplish one or more of the following: storm sewer improvements; provide land for needed public streets, utilities and facilities; carry out land acquisition, site improvements, clearance and/or development to accomplish the uses and objectives set forth in this plan. The City may acquire property by gift, dedication, condemnation or direct purchase from willing sellers in orderto achieve the objectives ofthis TIF Plan. Such acquisitions will be undertaken only when there is assurance of funding to finance the acquisition and related costs. Subsection 2-6. Classification of the District The City, in determining the need to create a tax increment financing district in accordance with M.S., Sections 469.174 to 469.1794, as amended, inclusive, finds that the District, to be established, is a redevelopment district pursuantto M.S., Section 469.174, Subd. 10(a)(1) as defined below: (a) "Redevelopmentdistrict"meansatypeoftaxincrementfinancingdistrictconsistingofaproject, or portions of a project, within which the authority finds by resolution that one or more of the following conditions, reasonably disti^ibuted throughout the district, exists: (1) parcels consisting of 70 percent of the area in the district are occupied by buildings, streets, utilities, paved or gravel parking lots or other similar structures and more than SO percent of the buildings, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance; (2) The property consists ofvacant, unused, underused, inappropriately used, or infi^equently used rail yards, rail storage facilities or excessive or vacated railroad rights-of-way; (3) tankfacilities, orproperty whose immediatelyprevious use was for tank facilities, as defined in Section 11 SC, Subd. 1 S, if the tank facility: (� (ii) (iii) have or had a capacity of more than one million gallons; are located adjacent to rail facilities; or have been removed, or are unused, underused, inappropriately used or infrequently used,� or (4) a qual�ing disaster area, as defined in Subd. IOb. (b) For purposes of this subdivision, "structurally substandard" shall mean containing defects in structural elements or a combination ofdeficiencies in essentialutilities and facilities, lightand ventilation, fireprotection includingadequate egress, layoutand condition ofinteriorpartitions, or similar factors, which defects or deficiencies are of sufficient total significance to just� substantial renovation or clearance. (c) A building is notstructurally substandard if it is in compliance with the building code applicable to new buildings or could be modified to satisfy the building code at a cost of less than IS percent of the cost of constructing a new structure of the same square footage and type on the City of Mendota Heights Tax Increment Financing Plan for Tax Increment Financing District No. 2 2-2 page 93 site. The municipality may find that a building is not disqualified as structurally substandard under the preceding sentence on the basis of reasonably available evidence, such as the size, type, and age of the building, the average cost of plumbing, electi^ical, or structural repairs or other similar reliable evidence. The municipality may not make such a determination without an interior inspection of the property, but need not have an independent, expert appraisal prepared of the cost of repair and rehabilitation of the building. An interior inspection of the property is not required, if the municipality finds that (1) the municipality or authority is unable to gain access to the property after using its best efforts to obtain permission fi^om the party that owns or controls the property; and (2) the evidence otherwise supports a reasonable conclusion that the building is structurally substandard. (d) A parcel is deemed to be occupied by a sti^ucturally substandard building for purposes of the finding under paragraph (a) or by the improvement described in paragraph (e) if all of the following conditions are met: (1) the parcel was occupied by a substandard building or met the requirements ofparagraph (e), as the case may be, within three years of the filing of the requestfor certification of the parcel as part of the district with the county auditor; (2) the substandard building or the improvements described in paragraph (e) were demolished or removed by the authority or the demolition or removal was financed by the authority or was done by a developer under a development agreement with the authority; (3) the authority found by resolution before the demolition or removal that the parcel was occupied by a structurally substandard building or met the requirement o fparagraph (e) and that after demolition and clearance the authority intended to include the parcel within a district,� and (4) upon filing the request for certification of the tax capacity of the parcel as part of a district, the authority notifies the county auditor that the original ta� capacity of the parcel must be adjusted as provided by � 469.177, subdivision 1, paragraph (�. (e) For purposes of this subdivision, a parcel is not occupied by buildings, streets, utilities, paved or gravel parking lots or other similar structures unless IS percent of the area of the parcel contains buildings, streets, utilities, paved or gravel parking lots or other similar structures. (� For districts consisting of two or more noncontiguous areas, each area must qual� as a redevelopment district under paragraph (a) to be included in the district, and the entire area of the district must satisfy paragraph (a). In meeting the statutory criteria the City relies on the following facts and findings: • The District is a redevelopment district consisting of nine parcels. • An inventory shows that parcels consisting of more than 70 percent of the area in the District are occupied by buildings, streets, utilities, paved or gravel parking lots or other similar structures. • An inspection ofthe buildings located within the District finds that more than 50 percent ofthe buildings are structurally substandard as defined in the TIF Act. (See Appendix F). Pursuant to M. S., Section 469.176, Subd. 7, the District does not contain any parcel or part of a parcel that qualified under the provisions of M.S., Sections 273.111, 273.112, or 273.114 or Chapter 473H for taxes payable in any of the five calendar years before the filing of the request for certification of the District. City of Mendota Heights Tax Increment Financing Plan for Tax Increment Financing District No. 2 2-3 page 94 Subsection 2-7. Duration and First Year of Tax Increment of the District Pursuantto M.S., Section 469.175, Subd. 1, and Section 469.176, Subd. 1, the duration and first year oftax increment of the District must be indicated within the TIF Plan. Pursuantto M. S., Section 469.176, Subd. l b., the duration of the District will be 25 years after receipt of the first increment by the City (a total of 26 years oftax increment). The City elects to receive the first tax increment in 2019, which is no later than four years following the year of approval of the District. Thus, it is estimated that the District, including any modifications of the TIF Plan for subsequent phases or other changes, would terminate after 2044, or when the TIF Plan is satisfied. The City reserves the right to decertify the District prior to the legally required date. Subsection 2-8. Original Tax Capacity, Tax Rate and Estimated Captured Net Tax Capacity Value/Increment and Notification of Prior Planned Improvements Pursuantto M. S., Section 469.174, Subd. 7 and M. S., Section 469.177, Subd. l, the Original Net Tax Capacity (ONTC) as certified for the District will be based on the market values placed on the properiy by the assessor in 2016 for taxes payable 2017. Pursuantto M.S., Section 469.177, Subds. 1 and 2, the County Auditor shall certify in each year (beginning in the payment year 2019) the amount by which the original value has increased or decreased as a result o£ Change in tax exempt status of property; Reduction or enlargement of the geographic boundaries of the district; Change due to adjustments, negotiated or court-ordered abatements; Change in the use of the properiy and classification; Change in state law governing class rates; or Change in previously issued building permits. In any year in which the current Net Tax Capacity (NTC) value of the District declines below the ONTC, no value will be captured and no tax increment will be payable to the City. The original local tax rate for the District will be the local tax rate for taxes payable 2017, assuming the request for certification is made before June 30, 2017. The ONTC and the Original Local Tax Rate for the District appear in the table below. Pursuant to M.S., Section 469.174 Subd. 4 and M.S., Section 469.177, Subd. 1, 2, and 4, the estimated Captured Net Tax Capacity (CTC) of the District, within Municipal Development District No. 1, upon completion of the projects within the District, will annually approximate tax increment revenues as shown in the table below. The City requests 100 percent of the available increase in tax capacity for repayment of its obligations and current expenditures, beginning in the tax year payable 2019. The Project Tax Capacity (PTC) listed on the following page is an estimate of values when the projects within the District are completed. City of Mendota Heights Tax Increment Financing Plan for Tax Increment Financing District No. 2 2-4 Project Estimated Tax Capacity upon Completion (PTC) Original Estimated Net Tax Capacity (ONTC) Estimated Captured Tax Capacity (CTC) Original Local Tax Rate Estimated Annual Tax Increment (CTC x Local Tax Rate) $483,770 $10,321 $473,449 0.92244 $436,728 page 95 Pay 2017 Percent Retained by the City 100°/a TaY capacity includes a 3% inflarion factor for the durarion of the District. The taY capacity included in this chart is the estimated taY capacity of the District in year 25. The taY capacity of the District in year one is esrimated to be $60,375. Pursuant to M.S., Section 469.177, Subd. 4, the City shall, after a due and diligent search, accompany its request for certification to the County Auditor or its notice of the District enlargement pursuant to M.S., Section 469.175, Subd. 4, with a listing of all properties within the District or area of enlargement for which building permits have been issued during the eighteen (18) months immediately preceding approval ofthe TIF Plan by the municipality pursuantto M.S., Section 469.175, Subd. 3. The County Auditor shall increase the original net tax capacity of the District by the net tax capacity of improvements for which a building permit was issued. The City has reviewed the area to be included in the District and found no parcels for which building permits have been issued during the 18 months immediately preceding approval of the TIF Plan by the City. Subsection 2-9. Sources of Revenue/Bonds to be Issued The costs outlined in the Uses of Funds will be financed primarily through the annual collection of tax increments. The City reserves the right to incur bonds or other indebtedness as a result of the TIF Plan. As presently proposed, the projects within the District will be financed by a pay-as-you-go note and interfund loan. Any refunding amounts will be deemed a budgeted cost without a formal TIF Plan Modification. This provision does not obligate the City to incur debt. The City will issue bonds or incur other debt only upon the determination that such action is in the best interest of the City. The total estimated tax increment revenues for the District are shown in the table below: SOURCES OF FUNDS Tax lncrement Interest TOTAL TOTAL $7,731,493 $773,149 $8,504,642 The City may issue bonds (as defined in the TIF Act) secured in whole or in part with tax increments from the District in a maximum principal amount of $5,417,5 85 . Such bonds may be in the form of pay-as-you-go notes, revenue bonds or notes, general obligation bonds, or interfund loans. This estimate of total bonded indebtedness is a cumulative statement of authority under this TIF Plan as of the date of approval. City of Mendota Heights Tax Increment Financing Plan for Tax Increment Financing District No. 2 2-5 page 96 Subsection 2-10. Uses of Funds Currently under consideration for the District is a proposal to facilitate the construction of approximately 69 apartment units. The City has determined that it will be necessary to provide assistance to the project(s) for certain District costs, as described. The City has studied the feasibility ofthe development or redevelopment of property in and around the District. To facilitate the establishment and development or redevelopment of the District, this TIF Plan authorizes the use of tax increment financing to pay for the cost of certain eligible expenses. The estimate of public costs and uses of funds associated with the District is outlined in the following table. USES OF TAX INCREMENT FUNDS Land/Building Acquisition Site Improvements/Preparation Utilities Other Qualifying Improvements Administrative Costs (u� to 10%� PROJECT COST TOTAL Interest PROJECT AND INTEREST COSTS TOTAL TOTAL $2,000,000 $1,000,000 $700,000 $944,436 $773,149 $5,417,585 $3,087,057 $8,504,642 The total project cost, including financing costs (interest) listed in the table above does not exceed the total projected tax increments for the District as shown in Subsection 2-9. Estimated costs associated with the District are subject to change among categories without a modification to this TIF Plan. The cost of all activities to be considered for tax increment financing will not exceed, without formal modification, the budget above pursuant to the applicable statutory requirements. Pursuant to M. S., Section 469.1763, Subd. 2, no more than 25 percent ofthe tax increment paid by property within the District will be spent on activities related to development or redevelopment outside ofthe District but within the boundaries of Municipal Development District No. 1, (including administrative costs, which are considered to be spent outside of the District) subject to the limitations as described in this TIF Plan. Subsection 2-11. Fiscal Disparities Election Pursuant to M.S., Section 469.177, Subd. 3, the City may elect one of two methods to calculate fiscal disparities. Ifthe calculations pursuantto M.S., Section 469.177, Subd. 3, clause b, (withinthe District) are followed, the following method of computation shall apply: (1) The original net tax capacity shall be determined before the application of the fiscal disparity provisions of Chapter 276A or 473F. The current net ta� capacity shall exclude any fiscal disparity commercial-industrial net tax capacity increase between the original year and the current year multiplied by the fiscal disparity ratio determined pursuant to M.S., Section 276A.06, subdivision 7 or M.S., Section 473F.08, subdivision 6. Where the original net tax capacity is equal to or greater than the currentnet tax capacity, there is no captured tax capacity and no tax increment determination. Where the original tax capacity is less than the current tax capacity, the difference between the original net tax capacity and the current net tax capacity City of Mendota Heights Tax Increment Financing Plan for Tax Increment Financing District No. 2 2-6 page 97 is the captured net ta� capacity. This amount less any portion thereof which the authority has designated, in its tax increment financing plan, to share with the local taxing districts is the retained captured net ta� capacity of the authority. (2) The county auditor shall exclude the retained captured net tax capacity of the authority fi^om the net tax capacity of the local taxing disti^icts in determining local taxing district tax rates. The local tax rates so determined are to be extended against the retained captured net ta� capacity of the authority as well as the net tax capacity of the local taxing districts. The tax generated by the extension of the less of (A) the local taxing district tax rates or (B) the original local tax rate to the retained captured net ta� capacity of the authority is the ta� increment of the authority. The City will choose to calculate �scal disparities by clause b. It is not anticipated that the District will contain commercial/industrial property. As a result, there should be no impact due to the �scal disparities provision on the District. According to M.S., Section 469.177, Subd. 3: (c) The method of computation of ta� increment applied to a district pursuant to paragraph (a) or (b) shall remain the same for the duration of the district, except that the governing body may elect to change its election fi^om the method of computation in paragraph (a) to the method in paragraph (b). Subsection 2-12. Business Subsidies Pursuant to M. S., Section 116J.993, Subd. 3, the following forms of financial assistance are not considered a business subsidy: (1) �2) (3) (4) (5) (6) ��) �g) (15) A business subsidy of less than $150,000; Assistance that is generally available to all businesses or to a general class of similar businesses, such as a line of business, size, location, or similar general criteria; Public improvements to buildings or lands owned by the state or local government that serve a public purpose and do not principally benefit a single business or defined group of businesses at the time the improvements are made; Redevelopment property polluted by contaminants as defined in M. S., Section 116J. 552, Subd. 3; Assistance provided for the sole purpose of renovating old or decaying building stock or bringing it up to code and assistance provided for designated historic preservation districts, provided that the assistance is equal to or less than 50% of the total cost; Assistance to provide job readiness and training services ifthe sole purpose ofthe assistance is to provide those services; Assistance for housing; Assistance for pollution control or abatement, including assistance for a tax increment financing hazardous substance subdistrict as defined under M.S., Section 469.174, Subd. 23; Assistance for energy conservation; Tax reductions resulting from conformity with federal tax law; Workers' compensation and unemployment compensation; Benefits derived from regulation; Indirect benefits derived from assistance to educational institutions; Funds from bonds allocated under chapter 474A, bonds issued to refund outstanding bonds, and bonds issued for the benefit of an organization described in section 501 (c) (3) of the Internal Revenue Code of 1986, as amended through December 31, 1999; Assistance for a collaboration between a Minnesota higher education institution and a business; City of Mendota Heights Tax Increment Financing Plan for Tax Increment Financing District No. 2 2-7 page 98 (16) Assistance for a tax increment financing soils condition district as defined under M.S., Section 469.174, Subd. 19; (17) Redevelopment when the recipient's investment in the purchase of the site and in site preparation is 70 percent or more of the assessor's current year's estimated market value; (18) General changes in tax increment financing law and other general tax law changes of a principally technical nature; (19) Federal assistance until the assistance has been repaid to, and reinvested by, the state or local government agency; (20) Funds from dock and wharf bonds issued by a seaway port authority; (21) Business loans and loan guarantees of $150,000 or less; (22) Federal loan funds provided through the United States Department of Commerce, Economic Development Administration; and (23) Properiy tax abatements granted under M.S., Section 469.1813 to property that is subjectto valuation under Minnesota Rules, chapter 8100. The City will comply with M.S., Sections 116J.993 to 116J.995 to the e�tent the tax increment assistance under this TIF Plan does not fall under any of the above exemptions. Subsection 2-13. County Road Costs Pursuant to M. S., Section 469.175, Subd. 1 a, the county board may require the City to pay for all or part of the cost of county road improvements if the proposed development to be assisted by tax increment will, in the judgment of the county, substantially increase the use of county roads requiring construction of road improvements or other road costs and if the road improvements are not scheduled within the next five years under a capital improvement plan or within five years under another county plan. If the county elects to use increments to improve county roads, it must notify the City within forty-five days of receipt of this TIF Plan. In the opinion of the City and consultants, the proposed development outlined in this TIF Plan will have little or no impact upon county roads, therefore the TIF Plan was not forwarded to the county 45 days prior to the public hearing. The City is aware that the county could claim that tax increment should be used for county roads, even after the public hearing. Subsection 2-14. Estimated Impact on Other Taxing Jurisdictions The estimated impact on other taxing jurisdictions assumes that the redevelopment contemplated by the TIF Plan would occur without the creation of the District. However, the City has determined that such development or redevelopment would not occur "but for" tax increment financing and that, therefore, the fiscal impact on other taxing jurisdictions is $0. The estimated fiscal impact of the District would be as follows if the "but for" test was not met: Dakota County City of Mendota Heights ISD No. 197 IMPACT ON TAX BASE 2016/Pay 2017 Estimated Captured Total Net Tax Capacity (CTC) Tax CapacitX Unon Completion 420,417,621 19,837,907 57,669,437 473,449 473,449 473,449 Percent of CTC to Entitv Total City of Mendota Heights Tax Increment Financing Plan for Tax Increment Financing District No. 2 0.1126°/a 2.3866°/a 0.8210°/a 2-8 Dakota County City of Mendota Heights ISD No. 197 Other Total IMPACT ON TAX RATES Pay 2017 Percent Extension Rates of Total 0.280040 0.374870 0.222950 0.044580 0.922440 3036% 40.64% 24.17% 4.83°/a 100.00°/a page 99 Potential CTC TaYes 473,449 132,585 473,449 177,482 473,449 105,555 473,449 21,106 436,728 The estimates listed above display the captured tax capacity when all construction is completed. The tax rate used for calculations is the actual Pay 2017 rate. The total net capacity for the entities listed above are based on actual Pay 2017 figures. The District will be certified under the actual Pay 2017 rates, assuming the request for certification is made before June 30, 2017. Pursuantto M.S. Section 469.175 Subd. 2(b): (1) Estimate of total tax increment. It is estimated that the total amount of tax increment that will be generated over the life of the District is $7,731,493; (2) Probable impact of the District on city_provided services and abilitv to issue debt. An impact of the District on police protection is not expected. The City does track all calls for service including properiy-type calls and crimes. With any addition of new residents or businesses, police calls for service will be increased. New developments add an increase in traffic, and additional overall demands to the call load. The City does not expect that the proposed development, in and of itself, will necessitate new capital investment or require that the City expand its Police Department. The probable impact ofthe District on fire protection is not expected to be significant. Typically new buildings generate few calls, if any, and are of superior construction. The existing buildings, which will be eliminated by the new development, have public safety concerns. The impact of the District on public infrastructure is expected to be minimal. The development is not expected to significantly impact any traffic movements in the area. The current infrastructure for sanitary sewer, storm sewer and water will be able to handle the additional volume generated from the proposed development. Based on the development plans, there are no additional costs associated with street maintenance, sweeping, plowing, lighting and sidewalks. The development in the District is expectedto contribute sanitary sewer (SAC) fees and $200/unitforwater (WAC) connection fees. The probable impact of any District general obligation tax increment bonds on the ability to issue debt for general fund purposes is expected to be minimaL It is not anticipated that there will be any general obligation debt issued in relation to this project, therefore there will be no impact on the City's ability to issue future debt or on the City's debt limit. (3) Estimated amount of tax increment attributable to school district levies. It is estimated that the amount of tax increments over the life of the District that would be attributable to school district levies, assuming the school district's share of the total local tax rate for all taxing jurisdictions remained the same, is $1,868,702; City of Mendota Heights Tax Increment Financing Plan for Tax Increment Financing District No. 2 2-9 page 100 (4) Estimated amount of tax increment attributable to countv levies. It is estimated that the amount of tax increments over the life of the District that would be attributable to county levies, assuming the county's share ofthe total local tax rate for all taxing jurisdictions remained the same, is $2,347,281; (5) Additional information requested bv the countv or school district. The City is not aware of any standard questions in a county or school district written policy regarding tax increment districts and impact on county or school district services. The county or school district must request additional information pursuant to M.S. Section 469.175 Subd. 2(b) within 15 days after receipt of the tax increment financing plan. No requests for additional information from the county or school district regarding the proposed development for the District have been received. Subsection 2-15. Supporting Documentation Pursuant to M.S. Section 469.175, Subd. 1(a), clause 7 the TIF Plan must contain identification and description of studies and analyses used to make the determination set forth in M. S. Section 469.175, Subd. 3, clause (b)(2) and the findings are required in the resolution approving the District. Following is a list of reports and studies on file at the City that support the City's findings: • Dakota County Comprehensive Housing Needs Assessment September 2013 (Maxfield Research). • Summary of Findings - Mendota Heights Housing Needs and Recommendations from the Dakota County Comprehensive Housing Needs Assessment March 2014 (Maxfield Research). Subsection 2-16. Definition of Tax Increment Revenues Pursuant to M. S., Section 469.174, Subd. 25, tax increment revenues derived from a tax increment financing district include all ofthe following potential revenue sources: Taxes paid by the captured net tax capacity, but excluding any excess taxes, as computed under M. S., Section 469.177; The proceeds from the sale or lease of property, tangible or intangible, to the extent the property was purchased by the authority with tax increments; Principal and interest received on loans or other advances made by the authority with tax increments; Interest or other investment earnings on or from tax increments; Repayments or return of tax increments made to the Authority under agreements for districts for which the request for certification was made after August 1, 1993; and The market value homestead credit paid to the Authority under M.S., Section 273.1384. Subsection 2-17. Modifications to the District In accordance withM.S., Section 469.175, Subd. 4, any: Reduction or enlargement of the geographic area of the District, if the reduction does not meet the requirements ofM.S., Section 469.175, Subd. 4(e); Increase in amount of bonded indebtedness to be incurred; A determination to capitalize interest on debt if that determination was not a part of the original TIF Plan; Increase in the portion of the captured net tax capacity to be retained by the City; Increase in the estimate ofthe cost ofthe District, including administrative expenses, that will be paid or financed with tax increment from the District; or City of Mendota Heights Tax Increment Financing Plan for Tax Increment Financing District No. 2 2-10 page 101 6. Designation of additional property to be acquired by the City, shall be approved upon the notice and after the discussion, public hearing and findings required for approval of the original TIF Plan. Pursuant to M. S. Section 469.175 Sztbd. 4(�, the geographic area of the District may be reduced, but shall not be enlarged after five years following the date of certification of the original net tax capacity by the county auditor. If a redevelopment district is enlarged, the reasons and supporting facts for the determination that the addition to the district meets the criteria of M.S., Section 469.174, Subd. 10, must be documented in writing and retained. The requirements of this paragraph do not apply if (1) the only modification is elimination of parcel(s) from the District and (2)(A) the current net tax capacity of the parcel(s) eliminated from the District equals or exceeds the net tax capacity of those parcel(s) in the District's original net tax capacity or (B) the City agrees that, notwithstanding M.S., Section 469.177, Subd. 1, the original net tax capacity will be reduced by no more than the current net tax capacity of the parcel(s) eliminated from the District. The City must notify the County Auditor of any modification to the District. Modifications to the District in the form of a budget modification or an expansion of the boundaries will be recorded in the TIF Plan. Subsection 2-18. Administrative Expenses In accordance with M.S., Section 469.174, Subd. 14, administrative expenses means all expenditures ofthe City, other than: Amounts paid for the purchase of land; Amounts paid to contractors or others providing materials and services, including architectural and engineering services, directly connected with the physical development of the real property in the District; Relocation benefits paid to or services provided for persons residing or businesses located in the District; Amounts used to pay principal or interest on, fund a reserve for, or sell at a discount bonds issued pursuant to M.S., Section 469.178; or Amounts used to pay other financial obligations to the extent those obligations were used to finance costs described in clauses (1) to (3). For districts for which the request for certification were made before August 1, 1979, or after June 30, 1982, and before August 1, 2001, administrative expenses also include amounts paid for services provided by bond counsel, fiscal consultants, and planning or economic development consultants. Pursuant to M.S., Section 469.176, Szibd. 3, tax increment may be used to pay any authorized and documented administrative expenses for the District up to but not to exceed 10 percent of the total estimated tax increment expenditures authorized by the TIF Plan or the total tax increments, as defined by M. S., Section 469.174, Subd. 25, clause (1), from the District, whichever is less. For districts for which certification was requested after July 31, 2001, no tax increment may be used to pay any administrative expenses for District costs which exceed ten percent of total estimated tax increment expenditures authorized by the TIF Plan orthe total tax increments, as defined in M. S., Section 469.174, Sztbd. 25, clause (1), from the District, whichever is less. Pursuant to M.S., Section 469.176, Subd. 4h, tax increments may be used to pay for the County's actual administrative expenses incurred in connection with the District and are not subject to the percentage limits ofM.S., Section 469.176, Subd. 3. The county may require payment ofthose expenses by February 15 ofthe City of Mendota Heights Tax Increment Financing Plan for Tax Increment Financing District No. 2 2-11 page 102 year following the year the expenses were incurred. Pursuantto M.S., Section 469. 177, Subd. 11, the County Treasurer shall deduct an amount (currently .36 percent) of any increment distributed to the City and the County Treasurer shall pay the amount deducted to the State Commissioner of Management and Budget for deposit in the state general fund to be appropriated to the State Auditor for the cost of financial reporting of tax increment financing information and the cost of examining and auditing authorities' use of tax increment financing. This amount may be adjusted annually by the Commissioner of Revenue. Subsection 2-19. Limitation of Increment The tax increment pledged to the payment of bonds and interest thereon may be discharged and the District may be terminated if sufficient funds have been irrevocably deposited in the debt service fund or other escrow account held in trust for all outstanding bonds to provide for the payment of the bonds at maturity or redemption date. Pursuant to M. S., Section 469.176, Subd. 6: if, after four years fi^om the date of certification of the original net tax capacity of the tax incrementfinancingdistrictpursuanttoM.S., Section 469.177, no demolition, rehabilitation or renovation of property or other site preparation, including qualified improvement of a street adjacent to a parcel but not installation of utility service including sewer or water systems, has been commenced on a parcel located within a tax incrementfinancing district by the authority or by the owner ofthe parcel in accordance with the tcr� increment financing plan, no additional tax increment may be taken fi^om that parcel, and the original net tax capacity of that parcel shall be excluded fi^om the original net tax capacity of the tax increment financing district. If the authority or the owner of the parcel subsequently commences demolition, rehabilitation or renovation or other site preparation on thatparcel including qualified improvement of a street adjacent to that parcel, in accordance with the tax increment financingplan, the authority shall certify to the county auditor that the activity has commenced and the county auditor shall certify the net tax capacity thereof as most recently certified by the commissioner of revenue and add it to the original net tax capacity ofthe ta� increment financingdistrict. The county auditormustenforce theprovisions ofthis subdivision. The authority must submit to the county auditor evidence that the required activity has taken place for each parcel in the district. The evidence for a parcel must be submitted byFebruary 1 ofthe fifth yearfollowing the year in which the parcel was certified as included in the district. For purposes of this subdivision, qualified improvements of a street are limited to (1) construction or opening of a new street, (2) relocation of a street, and (3) substantial reconsti^uction or rebuilding of an existing street. The City or a property owner must improve parcels within the District by approximately June 2021 and report such actions to the County Auditor. Subsection 2-20. Use of Tax Increment The City hereby determines that it will use 100 percent of the captured net tax capacity of taxable property located in the District for the following purposes: 1. To pay the principal of and interest on bonds issued to finance a project; 2. To finance, or otherwise pay the capital and administration costs of Municipal Development District No. 1 pursuantto M.S., Sections 469.124 to 469.133; City of Mendota Heights Tax Increment Financing Plan for Tax Increment Financing District No. 2 2-12 page 103 To pay for project costs as identified in the budget set forth in the TIF Plan; To fmance, or otherwise pay for other purposes as provided in M.S., Section 469.176, Subd. 4; To pay principal and interest on any loans, advances or other payments made to or on behalf of the City or for the benefit of Municipal Development District No. 1 by a developer; To finance or otherwise pay premiums and other costs for insurance or other security guaranteeing the payment when due of principal of and interest on bonds pursuant to the TIF Plan or pursuant to M.S., Chapter 462C. M.S., Sections 469.152 through 469.165, and/orM.S., Sections 469.178; and To accumulate or maintain a reserve securing the payment when due of the principal and interest on the tax increment bonds or bonds issued pursuant to M.S., Chapter 462C, M.S., Sections 469.152 through 469.165, and/orM.S., Sections 469.178. These revenues shall not be used to circumvent any levy limitations applicable to the City nor for other purposes prohibited by M.S., Section 469.176, Subd. 4. Tax increments generated in the District will be paid by Dakota County to the City for the Tax Increment Fund of said District. The City will pay to the developer(s) annually an amount not to exceed an amount as specified in a developer's agreement to reimburse the costs of land acquisition, public improvements, demolition and relocation, site preparation, and administration. Remaining increment funds will be used for City administration (up to 10 percent) and for the costs of public improvement activities outside the District. Subsection 2-21. Excess Increments Excess increments, as defined in M.S., Section 469.176, Subd. 2, shall be used only to do one or more ofthe following: 1. Prepay any outstanding bonds; 2. Discharge the pledge of tax increment for any outstanding bonds; 3. Pay into an escrow account dedicated to the payment of any outstanding bonds; or 4. Return the excess to the County Auditor for redistribution to the respective ta�ng jurisdictions in proportion to their local tax rates. The City must spend or return the excess increments under paragraph (c) within nine months after the end of the year. In addition, the City may, subject to the limitations set forth herein, choose to modify the TIF Plan in order to finance additional public costs in Municipal Development District No. 1 or the District. Subsection 2-22. Requirements for Agreements with the Developer The City will review any proposal for private development to determine its conformance with the Development Program and with applicable municipal ordinances and codes. To facilitate this effort, the following documents may be requested for review and approval: site plan, construction, mechanical, and electrical system drawings, landscaping plan, grading and storm drainage plan, signage system plan, and any other drawings or narrative deemed necessary by the City to demonstrate the conformance ofthe development with City plans and ordinances. The City may also use the Agreements to address other issues related to the development. Pursuant to M.S., Section 469.176, Sztbd. S, no more than 25 percent, by acreage, of the property to be acquired in the District as set forth in the TIF Plan shall at any time be owned by the City as a result of acquisition with the proceeds of bonds issued pursuant to M. S., Section 469.178 to which tax increments from property acquired is pledged, unless prior to acquisition in excess of 25 percent of the acreage, the City concluded an agreement for the development or redevelopment of the property acquired and which provides recourse for the City should the development or redevelopment not be completed. City of Mendota Heights Tax Increment Financing Plan for Tax Increment Financing District No. 2 2-13 page 104 Subsection 2-23. Assessment Agreements Pursuant to M.S., Section 469.177, Subd. 8, the City may enter into a written assessment agreement in recordable form with the developer of property within the District which establishes a minimum market value ofthe land and completed improvements forthe duration ofthe District. The assessment agreement shall be presented to the County Assessor who shall review the plans and specifications for the improvements to be constructed, review the market value previously assigned to the land upon which the improvements are to be constructed and, so long as the minimum market value contained in the assessment agreement appears, in the judgment of the assessor, to be a reasonable estimate, the County Assessor shall also certify the minimum market value agreement. Subsection 2-24. Administration of the District Administration of the District will be handled by the City Administrator. Subsection 2-25. Annual Disclosure Requirements Pursuant to M. S., Section 469.175, Subds. S, 6, and 6b the City must undertake fmancial reporting for all tax increment financing districts to the Office of the State Auditor, County Board and County Auditor on or before August 1 of each year. M. S., Section 469.175, Subd. S also provides that an annual statement shall be published in a newspaper of general circulation in the City on or before August 15. If the City fails to make a disclosure or submit a report containing the information required by M. S., Section 469.175 Subd. S and Subd. 6, the Office of the State Auditor will direct the County Auditor to withhold the distribution of tax increment from the District. Subsection 2-26. Reasonable Expectations As required by the TIF Act, in establishing the District, the determination has been made that the anticipated development would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and thatthe increased market value ofthe site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration ofthe District permitted by the TIF Plan. In making said determination, reliance has been placed upon written representation made by the developer to such effects and upon City staff awareness ofthe feasibility of developing the project site(s) within the District. A comparative analysis of estimated market values both with and without establishment ofthe District and the use oftax increments has been performed as described above. Such analysis is included with the cashflow in Appendix D, and indicates that the increase in estimated market value of the proposed development (less the indicated subtractions) exceeds the estimated market value of the site absent the establishment of the District and the use of tax increments. Subsection 2-27. Other Limitations on the Use of Tax Increment General Limitations. All revenue derived from tax increment shall be used in accordance with the TIF Plan. The revenues shall be used to finance, or otherwise pay the capital and administration costs of Municipal Development District No. 1 pursuant to M. S., Sections 469.124 to 469.133. Tax increments may not be used to circumvent existing levy limit law. No tax increment may be used for the acquisition, construction, renovation, operation, or maintenance of a building to be used primarily and regularly for conducting the business of a municipality, county, school district, or any other local unit of government or the state or federal government. This provision does not prohibit the use of revenues derived from tax City of Mendota Heights Tax Increment Financing Plan for Tax Increment Financing District No. 2 2-14 page 105 increments for the construction or renovation of a parking structure. 2. Poolin� Limitations. At least 75 percent of tax increments from the District must be expended on activities in the District or to pay bonds, to the extent that the proceeds ofthe bonds were used to finance activities within said district or to pay, or secure payment of, debt service on credit enhanced bonds. Not more than 25 percent of said tax increments may be expended, through a development fund or otherwise, on activities outside of the District except to pay, or secure payment of, debt service on credit enhanced bonds. For purposes of applying this restriction, all administrative expenses must be treated as if they were solely for activities outside of the District. Five Year Limitation on Commitment of Tax Increments. Tax increments derived from the District shall be deemed to have satisfied the 75 percent test set forth in paragraph (2) above only if the five year rule set forth in M.S., Section 469.1763, Subd. 3, has been satisfied; and beginning with the si�th year following certification of the District, 75 percent of said tax increments that remain after expenditures permitted under said five year rule must be used only to pay previously committed expenditures or credit enhanced bonds as more fully set forth in M.S., Section 469.1763, Subd. S. 4. Redevelopment District. At least 90 percent of the revenues derived from tax increment from a redevelopment district must be used to finance the cost of correcting conditions that allow designation ofredevelopment and renewal and renovation districts underM. S., Section 469.176 Subd. 4j. These costs include, but are not limited to, acquiring properties containing structurally substandard buildings or improvements or hazardous substances, pollution, or contaminants, acquiring adjacent parcels necessary to provide a site of sufficient size to permit development, demolition and rehabilitation of structures, clearing of the land, the removal of hazardous substances or remediation necessary for development of the land, and installation of utilities, roads, sidewalks, and parking facilities for the site. The allocated administrative expenses ofthe City, including the cost ofpreparation ofthe development action response plan, may be included in the qualifying costs. Subsection 2-28. Summary The City of Mendota Heights is establishing the District to preserve and enhance the tax base, redevelop substandard areas, and provide employment opportunities in the City. The TIF Plan for the District was prepared by Ehlers & Associates, Inc., 3060 Centre Pointe Drive, Roseville, Minnesota 55113, telephone (651) 697-8500. City of Mendota Heights Tax Increment Financing Plan for Tax Increment Financing District No. 2 2-15 page 106 Appendix A Project Description Michael Development of Minnesota, LLC intends to acquire nine parcels and redevelop the parcels in the District with two market rate apartment buildings totaling approximately 138 apartments. The project will be completed in two (2) phases, with the phase I commencing in 2017 and consisting of approximately 69 market rate apartments. Phase II is expected to commence in 2019 and consist of approximately 69 market rate apartments. The City intends to issue a PAYGO TIF Note for each phase to offset qualified costs related to the development ofthe site. Appendix A-1 page107 Appendix B Map of Municipal Development District No. 1 and the District Appendix B-1 � o � �� � � � � Q �'��T � a }qva3utpvnr, V ,,��� in° � �. e \ . ��� o� z� U p NN - N � � C � N � � O C fl- Q � � N U � jp N � N � O Q � N Q U -6 � U N y C N C ��.., Q �, L � O � � � � 01 � m N 2' O1 � Ul N n o A 2 ��..�6. � � z � a� — � � J � � o w° �Ea�i � H U cn � � � � ■ o o w I s"� ��w � _ � `m U �r. 7�;V � �� � - �A � � "��� ����;�„ ( I I L �I I�I+ ��„� � � � - �° i ,� � �, �_ '�.� � � ��'i�'� , , . �_.. . 7�.-�. T% '�'� . � �,����. `�, 1 1 � � � � _ _�� N O O O O O � 0 O M � V V � O O O � � ln ln ln ln ln ln ln ln N O 00000000 N ' DO000000 �N,� vi00000000 00 � N N N N N N N N �� ln ln ln ln ln ln ln � V ��������� N� a � � � � � � � � O N N N N N N N N 2 N a N � o 0 0 oz �z `m 0 � 0 J d � d page 109 Appendix C Description of Property to be Included in the District The District encompasses all property and adjacent rights-of-way and abutting roadways identified by the parcels listed below. Parcel Numbers Address Owner 27-28400-01-080 2180 Highway 13 Bhakta 27-75200-OS-020 2160 Highway 13 Larson 27-75200-OS-O50 2160 Highway 13 Larson 27-75200-OS-070 2160 Highway 13 Larson 27-75200-OS-110 2160 Highway 13 Larson 27-75200-OS-160 2160 Highway 13 Larson 27-75200-OS-380 2160 Highway 13 Larson 27-75200-OS-420 2160 Highway 13 Larson 27-75200-OS-421 2160 Highway 13 Larson Appendix C-1 page 110 Appendix D Estimated Cash Flow for the District Appendix D-1 O � � w � F 0 0 0 0 0 0 0 0 0 0 0 0 0 000�n �n�n o�n o�no O L n O O N I� N O N O N O O � N N � O O � � � � � N a` m -- r. � U � C � � � � a � � � Q a`�i E � - a� � _ (�p U r. i6 S N (� N Y6 �' C (6 a � C � � � N � O O� d' � O O z O O � O O 00 � (� 00 00 t/100-p fl- � O O �� O O � O O ( 6 O O � p � �00 jp �Ln� COO(�00 4,7 Xa�n�nC��.��� �oo_oo � w �iaia.� � oia�aa����°�� � � �n � � � -a S �6 .. � � - � a � � a � C � � � � � � � � O mm�p����p��pa�pz � � �=9 °' � `° Q� � ,� o � Y � E E m a S � � � E E C O C E - w C� C� � Q z = Q r r r r r r O O O O O O N N N N N N T T T T T T � � � � � � aaaaaa c � o 0 o�rnr�rncNo�m�o 0 0 0 0 0 � N 00 019N� � W�O� V V�NLN 0 M�Q� R VI �O�NN COCO � � � d C � M O�� V O � V � W � W K Q a�i N z X � � 0 � � � .� � pj o 0 w. � � � a � o � � � O C j N � C � � (� � (�6 Q ` C - N C R N C Q � � � C(6 c} E ���..o� N O O a � R O � N�in Q�' � ai t�/1 -0 0 C Z -O C � . � ~ � � � w 0 � . . 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OO����COCOI�I�LnLn V V LnLnC0C000C0C0 V V LnLn��l� I� CO CO Ln Ln CO CO N N Ln Ln M M�� N N O O CO 00 V V��NNI�I�MMOOCOCOI�I�COCO��NNCOCO��CO CO CO CO CO COI� I� O O V V O O I� I� I� I� �O �O � � Ln ' MMCOCOI�I��� V V COCONNLnLn��MMI�I�NNCOCO��Ln Ln O O Ln Ln O O CO CO � � I� I� N N CO CO V V � � I� ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' N N V V O O � � N N N N N N M M M M V V V V Ln Ln Ln Ln CO CO CO CO I� I� I� I� CO CO CO CO ���� O O � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � N N N N N .� _..�.�.�.�.�.�.�.�.� _..�.�.�.�.�.�.�.�.� _..�.�.� .� .� .� .�.�.� _..� _..� _..� _..� _..� _..� _..� _..� ����������������������������� � � � ������������������� MM V V OONNLnLnCOCO��LnLn��MMCOCO V V OOCOCOM M CO COI� I� CO CO CO CO CO CO I� I� CO CO O O M M CO �COCOCO��OO��NN V V LnLnCOCOCOCO����MM V V CO CO CO CO �� M M Ln Ln I� I� �� V V CO CO CO i � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � COCOCOCOLnLnI�I�000000 V V NN V V V V LnLn��I�I�LnLnO O Ln Ln CO CO CO COO O M M�� M M O O CO CO Ln Ln V CO CO I� I� �� CO CO CO CO I� I� CO CO O O M M CO CO Ln Ln Ln Ln I� I� M M M M CO CO V V I� I� CO CO O O O O �O �O M M Ln Ln CO CO CO O O I� I� N N CO CO � � I� I� V V M M N N N N V V I� I� � � I� I� V V N N N N M M CO CO � � I� I� V V V V Ln Ln CO CO M MMCOCOCOCO��LnLnCOCONNC0C000 V V COCONNI�I���CO CO CO CO CO CO N N I� I� M M�� Ln Ln � � CO NNI�I�OO������NNNNMMMMMM V V V V LnLnLn Ln CO CO CO COI� I� I� I� �O �O �O CO ���� O O � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � N N N N N N CO O M O I� � V I� I� O M M � � N M CO CO CO N CO I� Ln � I� CO Ln CO O CO CO O Ln CO Ln M � Ln N O CO CO M N Ln Ln M M Ln � CO V Ln � Ln M V CO Ln V I� M N V � CO I� I� CO I� CO M O I� V N O �O CO Ln V M N N N N M V Ln CO CO � M CO V Ln � N M M V Ln CO CO I� CO � O N M V Ln CO I� CO � N M � N N N N N N N N N N N M M M M M M M M M M V V V 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 v v v v v v v v v v v v v v v v v v v v v v v v v v N N N N N N N N N N N N N N N N N N N N N N N N N N . . . . . . . . . . . . . . . . . . . . . . . . . . � � � � � � � � � � � � � � � � � � � � � � � � � � V V Ln � CO M CO � M CO M CO Ln � � N CO � M M I� � � � Ln O O Ln N M CO V CO V � O O CO CO V V I� N N CO O � I� Ln V O CO CO I� Ln Ln CO M Ln � CO V Ln O CO � Ln M CO M V O O V N � I� Ln M N O � � CO � � O M V CO � N Ln � M Ln I� M V V Ln CO I� CO � O O N M V CO I� CO � O M V Ln I� � N N N N N N N N M M M M M M M M M M V V V V V V �. �. �. �. �. �. �. �. �. �. �. �. �. �. �. �. �. �. �. �. �. �. �. �. �. �. � � � � � � � � � � � � � � � � � � � � � � � � � � M M M M M M M M M M M M M M M M M M M M M M M M M M ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' O O O O O O O O O O O O O O O O O O O O O O O O O O � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � Ln Ln M CO O N CO V � O V � V I� CO � O M O O Ln V � O O O I� N N I� Ln Ln CO CO CO I� N N O CO I� I� � Ln Ln O N O �O I� M V O CO CO CO V Ln CO V M V � I� CO M M CO I� O CO I� O Ln N O I� Ln V N O � � � � � O M Ln I� � N CO � M CO CO V Ln CO CO I� CO � O N M V Ln I� CO � O N V Ln CO CO � N N N N N N N M M M M M M M M M M V V V V V V V 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O O O O O O O O O O O O O O O O O O O O O O O O O O � � � � � � � � � � � � � � � � � � � � � � � � � � R O F page 114 Appendix E Minnesota Business Assistance Form (Minnesota Department of Employment and Economic Development) A Minnesota Business Assistance Form (MBAF) should be used to report and/or update each calendar year's activity by April 1 of the following year. Please see the Minnesota Department of Employment and Economic Development (DEED) website at http://www.deed.state.mn.us/Communitv/subsidies/MBAFForm.htm for information and forms. Appendix E-1 page 115 Appendix F Redevelopment Qualifications for the District Appendix F-1 Report of Inspection Procedures and Results for Determining Qualifcations of a Tax Increment Financing District as a Redevelopment District Mendota Motel Redevelopment TIF District Mendota Heights, Minnesota , - , , ��v.. ,� . _ . , � � �.� �� ..�..� � � d � . x , �-�= � �,.�� � ��� ,� .�, � � '� �� � � �` � �� � ,, � �. -� , „�� � � " � � ,�`� � �� ��� . � �� � �' �L. ��," ' � ��,, � �� � � ,��� � o' ��� � �,�' k�� ��� �, ;��� �� ' �� � � � � �� �� �� ���� ��� � , �' ��� � � ��� � :. .. �� � — ,� �e� +u ;,�� �' ° _ ' � . �„ : � ca . � ,, �! , � ��� . , ��a _ ..,, � � 9r „ � . n �-� t '.,. ,� ° � � ". -�^' - �, " ' �� � , � � , � �' : �° � >.���+ �''�, � � � �.�.rc.,d f °�� a, , � � � �� �� . _ � � ,�z � � , �tl�r, , �° � „ �, „� _ .. ..._.� � �� � � �..,�.,.. 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P ,�'�° � _ .u� ,} $a��+�N"@; M t � dy� YF�� J � � Y� � } y,� <<<; `" „ ��'��!"��"��`�� �� '�� � � �, � �,w r z �� � ;� , , , � ;�� �' � � � �� ��� � q �,� $ $ � .g�,.�, � ��' ���� �� � ��n� �, �� �t� �� ��, �� �r�� �� �, � � .�� ?, a � ��f` �s"�� s �- , e �� ,� i� q � „�, � v, .,,, �:�`�,„�_r.,�',.:,, :�a�?G3' ..: f`a, � .s�` . �t@^�.. �..a�_� YM � "��.""titS, � � .r P '1 . . �' �C � � d� „ .. e H?Kx.. �'x . ., "�^° June 2, 2017 Prepared For the City of Mendota Heights Prepared by: LHB, Inc. �� 701 �X�ashington Avenue NoYth, Suite 200 iVlinneapolis, iVlinnesota 55401 LHB Pioject �o. 170268 page 116 page117 TABLE OF CONTENTS PART 1— EXECUTIVE SUMMARY ................................................................................ 2 Purpose of Evaluation ................................................................................ 2 Scopeof Work ........................................................................................... 3 Conclusion................................................................................................. 3 PART 2— MINNESOTA STATUTE 469.174, SUBDIVISION 10 REQUIREMENTS....... 3 A. Coverage Test ...................................................................................... 4 B. Condition of Buildings Test ................................................................... 4 C. Distribution of Substandard Buildings ................................................... 5 PART 3— PROCEDURES FOLLOWED ......................................................................... 6 PART 4 — FINDINGS ...................................................................................................... 6 A. Coverage Test ...................................................................................... 6 B. Condition of Building Test ..................................................................... 7 1. Building Inspection .................................................................... 7 2. Replacement Cost ..................................................................... 8 3. Code Deficiencies ..................................................................... 8 4. System Condition Deficiencies ..................................................9 C. Distribution of Substandard Structures ................................................. 9 PART 5- TEAM CREDENTIALS .................................................................................. 10 APPENDIX A Property Condition Assessment Summary Sheet APPENDIX B Building Code, Condition Deficiency and Context Analysis Reports APPENDIX C Building Replacement Cost Reports Code Deficiency Cost Reports Photographs page 118 PART 1 - EXECUTIVE SUMMARY PURPOSE OF EVALUATION LHB was hired b�� the Cit�� of Mendota Heights to inspect and e�raluate the properties within a Tax Increment Financing Redevelopment District ("TIF District") proposed to be established b�� the Cit��. The proposed TIF District is bounded b�� Highwa�� 13, Acacia Drive, and Victor�� Avenue (DiagYam 1). The purpose of LHB's woYk is to determine whetheY the pYoposed TIF District meets the statutor�� Yequirements foY coveYage, and whether three (3) buildings on nine (9) parcels and one (1) right of wa�� paYcel, located within the pYoposed TIF District, meet the qualificarions Yequired foY a Redevelopment District. .� , �� � �� , � � � � c. � +�� � � , ., � ,. ` .� � , � � ... ^�b , �# ,� , � , � v � kj � �i.__ u � i ,-_ -a�+ �� � � a _ � t ,r' !� a ., 1 �'�+ , ;f3 � �, '' � "� �:< >r � ��.. �� �!�. . y -.. � - .. . n , �- Jr�_ �....� ,� c: �J�.�' � � r 4p��m ' ' � ' . ' �... "s ` 4 ..,.-......A,...—. _ i � "� ' . ��ti°� <. „?"�� � :1{� r �,. � i F , �yq � � �� i'u����� � �'�i , a _ , n, � ' i . n �. "`. S� ,. � � ,� � y� . . � , �,e ;� ,.v .J � t � ' i* I . � ��,+���� � _ � ,� :, `, � �., r �� , .. .. • � .��'� ''�� i � ,, �, � = _ a �t.a� �; P.�k y �N,v� '�7 l',. - ! " : � � . 5 4��. R � : ri � � �y s-j?� *:" 1 �J ; �f �R�F ' - I e a. ,� , � � �, t4� t.�y�`� It. �w w �„�1 � �'��k�" a � "�-'� ���' �k �?� � ti1�' ➢ w �G� �- a � " 9;�" �` t �. � �i.;'� ,��, ��.;. �'� ���f�� . �, �� . .. �`� r + R �y , ' �'4 � � ��r � ,' : � s�� p �J 3.r, `ar �� r °�`�, ��',n � -�, eY a ��� ti !°,t b; � ! �� �`�' _ g , �H, �* � ; . +, r, ' p �'-'- �".' �n.. t J d, �ti . C ' 1 � . , �`J,� �� � °" .. Diagram 1— Proposed TIF District page 119 SCOPE OF WORK The proposed TIF District consists of nine (9) paYcels and one (1) right of wa�� paYcel with three (3) buildings and mulriple outbuildings. Three (3) buildings were inspected on iVla�� 4, 2017. Building Code and Condirion Deficienc�� RepoYts foY the buildings that were inspected are located in Appendix B. CONCLUSION AfteY inspecring and evaluating the propeYries within the pYoposed TIF District and apply�ing current statutor�� criteria foY a Rede�relopment District undeY Minnesota Statutes, Section 469.174, Sul�division 10, it is our pYofessional opinion that the pYoposed TIF District qualifies as a Redevelopment District because: • The proposed TIF District has a coverage calculation of 93.1 peYcent which is above the 70 percent requirement. • 100 percent of the buildings aYe structurall�� substandaYd which is above the 50 percent requirement. • The substandard buildings are reasonabl�� distributed. The Yemainder of this Yeport describes ouY process and findings in detail. PART 2- MINNESOTA STATUTE 469.174, SUBDIVISION 10 REQUIREMENTS The propeYries were inspected in accordance with the following requiYements under Minnesota Statutes, Section 469.174, Sul�division 10(c�, which states: INTERIOR INSPECTION "The municipalit�� ma�� not make such determinarion [that the building is structurall�� substandard] without an interior inspection of the pYopert��..." EXTERIOR INSPECTION AND OTHER MEANS "An interior inspection of the propert�� is not required, if the municipalit�� ftnds that (1) the municipalit�� or authorit�� is unable to gain access to the propeYt�� after using its best effoYts to obtain permission from the paYt�� that owns or controls the propeYt�; and (2) the evidence otherwise suppoYts a Yeasonable conclusion that the building is structuYall�� substandard." DOCUMENTATION "Written documentation of the findings and reasons wh�� an interior inspecrion was not conducted must be made and retained under secrion 469.175, subdivision 3(1)." QUALIFICATION REQUIREMENTS Minnesota Statutes, Section 469.174, Sul�division 10 (a� (1) Yequires three tests foY occupied parcels: page 120 A. COVERAGE TEST ..."parcels consisting of 70 percent of the area of the district are occupied b�� buildings, streets, utiliries, or paved or gravel parking lots. .." The co�rerage required b�� the parcel to be considered occupied is defined undeY Minnesota Statutes, Section 469.174, Sul�division 10(e�, which states: "FoY purposes of this subdivision, a paYcel is not occupied b�� buildings, streets, utiliries, paved oY gravel parking lots, oY otheY similaY structures unless 15 percent of the area of the parcel contains buildings, streets, utilities, paved or gra�rel paYking lots, oY other similaY structures." B. CONDITION OF BUILDINGS TEST Minnesota Statutes, Section 469.174, Sul�division 10(a� states, "...and moYe than 50 percent of the buildings, not including outbuildings, are structurall�� substandard to a degree requiring substantial renovation or clearance; ' 1. StructuYall�� substandaYd is defined undeY Minnesota Statutes, Section 469.174, Sul�division 10(1��, which states: "For purposes of this subdivision, `structurall�� substandaYd' shall mean containing defects in structural elements oY a combination of deficiencies in essenrial utiliries and facilities, light and ventilation, fiYe protecrion including adequate egress, la��out and condition of interior partitions, oY similar factors, which defects or deficiencies aYe of sufficient total significance to justif�� substantial Yenovation or clearance." a. We do not count energ�� code deficiencies toward the thresholds required b��Minnesota Statutes, Section 469.174, Sul�division 10(1�� defined as "structuYall�� substandaYd", due to conceYns expYessed b�� the State of iVlinnesota Court of Appeals in the I�alser Auto Sales, Inc. vs. City of Bicb aeld case filed NovembeY 13, 2001. 2. Buildings are not eligible to be considered structurall�� substandard unless the�� meet certain additional criteria, as set forth in Subdivision 10(c) which states: "A building is not structurall�� substandard if it is in compliance with the building code applicable to new buildings oY could be modified to sarisf�� the building code at a cost of less than 15 percent of the cost of construcring a new structuYe of the same square footage and t��pe on the site. The municipalit�� ma�� find that a building is not disqualified as structurall�� substandard under the preceding sentence on the basis of reasonabl�� a�railable e�ridence, such as the size, t��pe, and age of the building, the a�rerage cost of plumbing, electrical, oY structural repairs, or other similar reliable e�ridence." "Items of evidence that support such a conclusion [that the building is not disqualified] include Yecent fire or police inspections, on-site propeYt�� tax appraisals or housing inspecrions, exterior evidence of deterioYarion, or otheY similaY Yeliable evidence." LHB counts eneYg�� code deficiencies toward the 15 percent code threshold requiYed b�� Minnesota Statutes, Section 469.174, Sul�division 10(c)) for the following reasons: page 121 • The iVlinnesota eneYg�� code is one of ten building code areas highlighted b�� the iVlinnesota Department of Labor and Industr�� website wheYe minimum construcrion standards aYe Yequired b�� law. • Chapter 13 of the 2015 Minnesota Building Code states, `Buildings shall be designed and constructed in accordance with the Inteanational Eneagy Conseavation Code." FuYthermoYe, iVlinnesota Rules, ChapteY 1305.0021 SubpaYt 9 states, "References to the Inteanational Eneagy Conseavation Code in this code mean the Minnesota Eneagy Code. . . " • ChapteY 11 of the 2015 iVlinnesota Residenrial Code incoYpoYates iVlinnesota Rules, ChapteYs, 1322 and 1323 Minnesota Ene�gy Code. • The SenioY Building Code Representative foY the Construction Codes and Licensing Division of the iVlinnesota Departrnent of LaboY and Industr�� confirmed that the iVlinnesota EneYg�� Code is being enforced throughout the State of iVlinnesota. • In a Januar�� 2002 YepoYt to the iVlinnesota LegislatuYe, the Management Anal��sis Di�rision of the iVlinnesota Department of Adrniuistration confiYmed that the construcrion cost of new buildings comply�ing with the iVlinnesota EneYg�� Code is higher than buildings built prior to the enactment of the code. • Proper TIF anal��sis requiYes a comparison between the replacement �ralue of a new building built under curYent code standards with the repairs that would be necessar�� to bring the e�sting building up to current code standards. In order for an equal comparison to be made, all applicable code chapters should be applied to both scenarios. Since current construction estimaring software automaricall�� applies the construction cost of comply�ing with the iVlinnesota Energ�� Code, energ�� code deficiencies should also be identified in the e�sting structures. C. DISTRIBUTION OF SUBSTANDARD BUILDINGS Minnesota Statutes, Section 469.174, Sul�division 10, defines a Rede�relopment District and requires one oY more of the following conditions, "Yeasonabl�� distributed throughout the district." (1) "PaYcels consisting of 70 percent of the aYea of the district are occupied b�� buildings, streets, utiliries, pa�red or gra�rel parking lots, or other similaY structures and more than 50 percent of the buildings, not including outbuildings, aYe structuYall�� substandard to a degree requiring substanrial renovarion or clearance; (2) the propeYt�� consists of �racant, unused, underused, inappropriatel�� used, oY infrequentl�� used Yail ��aYds, rail storage faciliries, or excessi�re oY vacated Yailroad rights-of-wa�; (3) tank faciliries, or pYopert�� whose immediatel�� previous use was foY tank facilities. .." Our interpretarion of the distribution requirement is that the substandard buildings must be Yeasonabl�� distributed throughout the district as compared to the location of all buildings in the district. FoY example, if all of the buildings in a district aYe located on one half of the area of the district, with the otheY half occupied b�� parking lots (meering the required 70 percent co�rerage for the district), we would evaluate the distriburion of the substandard buildings compared with onl�� the half of the district where the buildings aYe located. If all of the buildings in a district aYe located evenl�� throughout the enrire aYea of the district, the substandard buildings must be Yeasonabl�� distributed throughout the entire aYea of the page 122 district We believe this is consistent with the opinion expressed b�� the State of iVlinnesota Court of Appeals in the I�alserAuto Sales, Inc. vs. City of Bicb aeld case filed November 13, 2001. PART 3 - PROCEDURES FOLLOWED LHB inspected three (3) of the three (3) buildings during the da�� of iVla�� 4, 2017. PART 4 - FINDINGS A. COVERAGE TEST 1. The total squaYe foot area of the paYcel in the pYoposed TIF District was obtained from Cit�� Yecords, GIS mapping and site �rerificarion. 2. The total squaYe foot area of buildings and site improvements on the parcels in the pYoposed TIF District was obtained from Cit�� records, GIS mapping and site verificarion. 3. The percentage of coverage for each parcel in the pYoposed TIF District was computed to determine if the 15 peYcent minimum requirement was met The total square footage of parcels meering the 15 percent requirement was di�rided into the total square footage of the enrire district to deteYmine if the 70 percent Yequirement was met. FINDING: The proposed TIF District met the coverage test undeY Minnesota Statutes, Section 469.174, Sul�division 10(e�, which resulted in parcels consisting of 93.1 percent of the area of the pYoposed TIF District being occupied b�� buildings, streets, utilities, pa�red or gYavel parking lots, or other similaY structures (Diagram 2). This exceeds the 70 percent area coverage requirement for the proposed TIF District under Minnesota Statutes, Section 469.174, Sul�division (a� �1�. page 123 �� ��w _ � k �� ��� ~� ` � Y �i d" � r� � �� �i �' � �'��' � d . �j. � � �I e � ,, y F , ti �� , , , , �� ,tt' "-a �, q � ,,� . � r ;, Vn i �y� � y � .� ' � r"� .' i . ( { 1 � "� �J�" W . .. �, ... p�� ,,,� i . r 6: . Y 'f G ` �. � + - . — - . -.,. ,_.,,�.�...�..—,,..wr,� ,,py..r�"6 ;i{� � � � ! ^,�f' 8d„.. � 1 �P� 9t ��„ Af � 1 . l y� .�` ++x' � 4'�!'",�Y '. ' `t��'�' s. �. a '�� ��3 � �"-- -�, . � � � , �� � . �� , 1 . ; �, . � �� ,� �. , - .„�„ m �Mr i ,� {g r`I . .: . �: !���� � �"Y"" � �. 5 q.�Y � 'S„ �,4' N� J n�y �' � : rc �� � 9k � ��r.� � �°`` I . i . °�` F'd'%ww�'f% �' � f�� "� � ��,.. �°, f.,,i " "^ � m '� � � � �'�q �; s� ��' �° '+ 3.r ��� i� � � „� 4 f 1 � 9 � "' � ' �'*.a'f'��"m�k'� C �r v. i � � .� � �� w �;� � �� i � 9 � 'W + R � ;h � ;� , c^ . � �`� � ,��. - -- ��,,� " � .: � � } �r ' � ,, ' _ ; °�� �. , � ��-'" , � u _. Rr- � � � � , '�,9u��?.�'� , !,t � : _ ,��,n ! ��, ' ._ °r u + fi , d °�� ",'" � � ' y ���j � f ��� i ,�, �-�r�� �!�'"` � �� ,- .� ' .� � "� �"�'�" � �� °%1� �- .. �� ��,, f � �."''""` I ,.t-. �, ,� �?`' y' , r �, r �y���"��• ( � ` ��,� � : tl�^.�'-�' f�. ' f' �� .1 �� .�� , ;t�'�,��'L�-...��4� , i.��,.w,a . .. ... ... � � P � � � , �. � . . .�. ,� � � ����,,��� . ,�,� , d�S I� h yP ^�, _ . �1 �' � � A� �'W . � . . ���5 . � _ � .F��Q��'W4b'NSb,rl..� ,( � � : ' -. ¢�F' ��3 r�� ._ _� .- _ . __ _. I x �" .; � k, � � 7, �� � Diagram 2 — Coverage Diagram Shaded uea depicts a pucel more than 1� peicent occupied br buildings, streets, utilities, paved oi giavel pasking lots oi other siinilu structures B. CONDITION OF BUILDING TEST 1. BUILDING INSPECTION The first step in the evaluarion process is the building inspection. AfteY an initial walk- thru, the inspector makes a judgment whether oY not a building "appeaYs" to have enough defects oY deficiencies of sufficient total significance to jusrif�� substanrial Yenovation or clearance. If it does, the inspector documents with notes and photogYaphs code and non- code deficiencies in the building. page 124 2. REPLACEMENT COST The second step in evaluating a building to deteYmine if it is substandaYd to a degree reqiliriug substantial Yenovation oY clearance is to determine its Yeplacement cost This is the cost of constructing a new structure of the same square footage and t�pe on site. Replacement costs were researched using R.S. Means Cost Works sc�uare foot models foY 2017. A Yeplacement cost was calculated b�� first establishing building use (office, retail, Yesidenrial, etc.), building construction t��pe (wood, concrete, masonr��, etc.), and building size to obtain the appropriate median replacement cost, which factors in the costs of construcrion in Mendota Heights, iVlinnesota. Replacement cost includes labor, materials, and the contractor's o�rerhead and profit. Replacement costs do not include architectural fees, legal fees or other "soft" costs not directl�� Yelated to construction activiries. Replacement cost foY each building is tabulated in �ppendix �. 3. CODE DEFICIENCIES The next step in evaluating a building is to determine what code deficiencies e�st with Yespect to such building. Code deficiencies are those condirions foY a building which aYe not in compliance with current building codes applicable to new buildings in the State of iVlinnesota. Minnesota Statutes, Section 469.174, Sul�division 10(c�, specificall�� provides that a building cannot be considered structuYall�� substandard if its code deficiencies aYe not at least 15 percent of the replacement cost of the building. As a Yesult, it was necessar�� to deteYmine the extent of code deficiencies for each building in the proposed TIF District. The evaluation was made b�� Yeviewing all available information with Yespect to such buildings contained in Cit�� Building Inspecrion records and making interioY and exterioY inspections of the buildings. LHB utilizes the current iVlinnesota State Building Code as the official code for our evaluarions. The iVlinnesota State Building Code is actuall�� a series of provisional codes written specificall�� for iVlinnesota onl�� requirements, adoprion of seveYal internarional codes, and amendments to the adopted international codes. AfteY idenrify�ing the code deficiencies in each building, we used R.S. Means Cost Works 2017; Unit and Assembl�� Costs to deteYmine the cost of correcring the idenrified deficiencies. �X�e were then able to compare the correcrion costs with the replacement cost of each building to determine if the costs for correcting code deficiencies meet the Yequired 15 percent threshold. FINDING: Three (3) out of three (3) buildings (100 percent) in the proposed TIF District contained code deficiencies exceeding the 15 percent threshold required b�� Minnesota Statutes, Section 469.174, Sul�division 10(c�. Building Code, Condition Deficienc�� and Context Anal��sis reports foY the buildings in the proposed TIF District can be found in Appendix B of this report. page 125 4. SYSTEM CONDITION DEFICIENCIES If a building meets the minimum code deficienc�� threshold under Minnesota Statutes, Section 469.174, Sul�division 10(c�, then in order foY such building to be "structurall�� substandard" undeY Minnesota Statutes, Section 469.174, Sul�division 10(1��, the building's defects oY deficiencies should be of sufficient total significance to jusrif�� "substanrial renovation oY cleaYance." Based on this definirion, LHB re-e�raluated each of the buildings that met the code deficienc�� threshold under Minnesota Statutes, Section 469.174, Sul�division 10(c�, to determine if the total deficiencies warYanted "substanrial Yenovation or cleaYance" based on the criteria we outlined above. S��stem condition deficiencies aYe a measurement of defects oY substanrial deterioration in site elements, structure, exterioY en�relope, mechanical and electrical components, fire protection and emergenc�� s��stems, interior parririons, ceilings, flooYs and dooYs. The evaluation of s��stem condirion deficiencies was made b�� reviewing all available informarion contained in Cit�� recoYds, and making interioY and exterior inspecrions of the buildings. LHB onl�� identified s��stem condition deficiencies that were visible upon our inspecrion of the building or contained in Cit�� records. We did not consider the amount of "senrice life" used up foY a particular component unless it was an ob�rious part of that component's deficiencies. AfteY idenrify�ing the s��stem condition deficiencies in each building, we used ouY professional judgment to determine if the list of defects or deficiencies is of sufficient total significance to jusrif�� "substantial renovation or cleaYance." FINDING: In our professional opinion, three (3) out of three (3) buildings (100 percent) in the pYoposed TIF District aYe structuYall�� substandard to a degree Yequiring substanrial renovation or clearance, because of defects in structural elements or a combinarion of deficiencies in essenrial utilities and facilities, light and ventilation, fire protection including adequate egress, la��out and condition of interior paYtitions, or similar factors which defects or deficiencies aYe of sufficient total significance to jusrif�� substantial Yenovarion oY clearance. This exceeds the 50 percent YequiYement of Subdivision 10a(1). C. DISTRIBUTION OF SUBSTANDARD STRUCTURES Much of this report has focused on the condition of individual buildings as the�� Yelate to Yequirements identified b�� Minnesota Statutes, Section 469.174, Sul�division 10. It is also important to look at the distriburion of substandard buildings throughout the geographic area of the proposed TIF District (Diagram 3). FINDING: The parcels with substandaYd buildings aYe reasonabl�� distributed compared to all parcels that contain buildings. page 126 � ,�� r � � � � �� ,�� � ,' 'p _ b d .� . 6 k+� . ;. . � � . . r Y ... �!. 1 "� . . r .� ' � � �, . � ° � � � kj, 'fii � . �.__ �j � k - •-�t ? q �� a �� a � � yy ( �i , �D a � . . 5 �; G ' � . '' �< b Ar.,. t , . �' .. .A ' a"a � . „�G " � b: �J�.^, ., t 't ' , �� .,�F � .'," ' . � � � . �� - _ — - . _ ,_.,,_,.. �___�_�"' '��'� r {� ,csr, '- � � r y � � � � �`�, n� �;'� .. � .�"�� '.�" � � ��' �" � ! n ��'���. � , ' �, ;; � �y � ����'�:�"� .Ji"• - � et , � � ..-�.. �Jp� '� }' � .. i x � r�`� '��'��' � q" " � � � �� �. u� m "�'� , ... �'._..� �, t "�� xt; a .� � �r ��� A'i"' I �' . �' � � � �'r �� �� ." �' �:y � a. ^ � � � � � f a z, •� �.'' � �.-.;��.� „�� . ��3m� -.w�::... �,�.w�=. f ti�,k� ��'� 9 � a � "� ��� � �o,,. ' '+�, �''b� 9 �i . ;"" ? °�v ye� {' � � ��i�; � 1 � b . �— P �" 1 � � � �Y` e r , . + � R � • � � � _.� � �, . `�,,.�` ��'4 � a � � �� � � � � t� �. ��� ;� . - �-�+.� � � "�. �.w��w'�r't� a�a.• fi � ' : '" '' . %ui". � - `�� . � . � � !,t �,n � � �„—�� �� r�+�': � g X�.:; � +�k d�, a�� �`- o-�,' � Gxe � _ � Ij ` �' , � .,� � �t i d . . ' � � �''' � r- a+ .. � �"�1�,�,� ...�! pr� "�a!`�� �9 u ra ��_ �r �`'i�- �^"` .. . �.��i»w y� Si "�`�'� r"�, .. f . x i,��.X i r . � � _ �� �"^�i '�{ ` �¢,� ����* . �' '. � � �: r'". � : - ,+� ,7� N�, '� ` �, .,,,p � � p �� � i s . � ;.� � e�i � � �'� � a �^:�'-�' f`. ' f' �� .� �� .� s�,. 4tl��..».,. .+e� i�,,:.G^,�....,� 'i ..'"'` .. �,.,.,,�,o,'.��. F. � �, _. 6 �,�;. � �� ��.�� ������m�..�..,�,m: 8��� � �� �" I � � a 6 �� k, � � � � � "� � � � ����( � �,�; ;��^�-- � � � �� �� _ � ti y; � P " . �" �W ���s � r� , � � �� y� �.�:.� '� , _ _ _ _ __ _ . . �.; k Y I x � � ,. �;�� _ - __ �" .� � k� .. � Diagram 3 — Substandard Buildings Shaded gieen uea depicts pascels with buildings. Shaded orange uea depicts substandasd buildings. PART 5 - TEAM CREDENTIALS Michael A. Fischer, AIA, LEED AP - Project Principal/TlF Analyst iVlichael has 29 ��eaYs of experience as project principal, project manager, project designer and project architect on planning, urban design, educational, commercial and governmental projects. He has become an expert on Tax Increment Finance District anal��sis assisring o�rer 100 ciries with strategic planning for TIF Districts. He is an AYchitectural Principal at LHB and currentl�� leads the iVlinneapolis office. page127 iVlichael completed a tt�o-��ear Bush Fellowship, study�ing at iVLIT and Har�rard in 1999, earning MasteYs degrees in Cit�� Planning and Real Estate De�relopment from iVLIT. He has senred on more than 50 committees, boaYds and communit�� task forces, including a teYm as a Cit�� Council President and as Chair of a Metropolitan Planning OYganizarion. Most recentl��, he senred as Chair of the Edina, iVlinnesota planning commission and is currentl�� a member of the Edina cit�� council. iVlichael has also managed and designed seveYal awaYd-winning architectuYal projects, and was one of fouY aYchitects in the Countr�� to receive the AIA Young AYchitects Citation in 1997. Philip Waugh — Project Manager/TlF Analyst Philip is a proj ect manager with 13 ��ears of experience in historic pYeser�rarion, building invesrigarions, material research, and construction methods. He previousl�� worked as a historic presenrationist and also ser�red as the presenration specialist at the St. Paul Heritage Preser�rarion Commission. Currentl��, Phil sits on the Board of Directors for the Preser�rarion rllliance of iVlinnesota. His current responsibiliries include project management of historic presenration projects, performing building condirion sunre��s and anal��sis, TIF anal��sis, wriring preser�rarion specifications, historic design Yeviews, writing Historic Preser�rarion Tax CYedit applicarions, preser�rarion planning, and grant �vriring. Phil Fisher — lnspector FoY 35 ��ears, Phil Fisher worked in the field of Building Operarions in iVlinnesota including White Bear Lake rlrea Schools. At the UniveYsitt� of iVlinnesota he earned his Bachelor of Science in Industrial Technolog��. He is a Cerrified P1ay�gYound Safet�� InspectoY, CeYrified Plant EngineeY, and is trained in iVlinnesota Enterprise Real Properries (NLERP) Facilit�� Condirion Assessment (FCA). His FCA training was recentl�� applied to the iVlinnesota Department of Natural Resources Faciliries Condirion Assessment project involving o�rer 2,000 buildings. Thomas D. Fennessey — lnspector Prior to joining the LHB team in earl�� 2015, Tom senred over 30 ��eaYs in various posirions within facilities management at the UniveYsit�� of �X�isconsin-Superior, including ser�ring as Director of Facilities Management foY oveY 10 ��eaYs. His Yole in LHB's Superior office includes owner's Yepresentation, qualit�� assurance of project deli�rery; construcrion management, Wisconsin business development, building assessments, plan Yeviews, and otheY facilities-Yelated assessments and projects. He has ser�red nearl�� eight ��ears as a cit�� councilor foY the Cit�� of Superior and is currentl�� cit�� council president In his �rarious roles he has worked with both local and state le�rels of government in seeking new and re�rised legislation for both higher Ed and local go�rernment. O:A17ProjA170268\400 Design\406 Reports\Final Report\170268 20170530 �lfendota �lfotel Rede�-elopment TIF Reportdocs APPENDICES APPENDIX A Property Condition Assessment Summary Sheet APPENDIX B Building Code and Condition Deficiencies Reports APPENDIX C Building Replacement Cost Reports Code Deficiency Cost Reports Photographs page 128 APPENDIX A Propert�� Condition Assessment Summar�� Sheet � N N Q � n rn fA ro m � fA N � rn � 0 0 M 0 O � o � M � C O � O � y Q 7 N � � N m o O C o � � co N � � N � � � w � � � U �A C OI N C � cmo U 'a �O o — o— N m � � N fA � � O � 0 � U � C i m o V a � r � v � Q- i» � � v0000000000 r�� co rn r o � � � � o�� N rn o � � rn � M o _ � � N�� � m N N � � M OMi N � � 0 0 0 0 0 0 0 0 0 0 � v m u� o o u� v � oi v v � r v � v ro � d v m N rn m co m N N � � N N > O U m m v u� � ro � � co � o O m_ O N � � � � N � O F � N N M � r r N N � I� �� co rn I� o � � co M o�� v m o m � � m � 0 o N rn o r m N co w'+' 'h N N w o � �n N O O O � � � O O O � O O � O � O N N N W N N W N W N W W W � W W � W � W � � � � � � � � � � � � � N N N N N N N N N N > > > > > > > > > > O O O O O O O O O O Q Q Q Q Q Q Q Q Q Q G � � � � � � � � � r� m m m m m m m m } } } } } } } } } S S S S S S S S S Q U` U` U` U` U` U` U` U` U` Z S S S S S S S S S 0 0 0 0 0 o v o 0 � � � � � � � � ro � N N N N N N N N N N � � Q N O � O O O O O O O Q c0 N N N LL� (O I� oJ � V O V O � O O � LL� LL� LL� LL� LL� LL� LL� LL� � � O O O O O O O O O O O O O O O O O O a f/1 N N N N N N N N V Z C LL� LL� LL� LL� LL� LL� LL� LL� W � I� I� r r r r r r N Q � r r r r r r r r fn N N N N N N N N N � � C J a a = a m c� o w a c� x_° O` 9 � L r # � � � � � E � � E d Q 0 � 0 U r n a` O d � m a 0 LL F N � O � N (O � N � O N � K . — O � Z o +� �� ;9 0 o a � m N = �C J page130 APPENDIX B Building Code, Condition Deficienc�� and Context Anal��sis RepoYts page131 Mendota Motel Redevelopment TIF District Building Code, Condition Deficiency and Context Analysis Report June 1, 2017 Parcel No. & Building Name: Address: Parcel ID: Inspection Date(s) & Time(s) Inspection T�-pe: Summar�- of Deficiencies: Estimated Replacement Cost: Parcel No. D Green House 2160 Highwa�-13 Mendota Heights, MN PID 277520005420 Ma�- 4, 2017 1:00 PM Interior and E�terior It is our professional opinion that this building is Substandard because: - Substantial reno�ation is required to correct Conditions found. - Builcling Code deficiencies total more than 15% of replacement cost, NOT including ener�- code deficiencies. Estimated Cost to Correct Building Code Deficiencies: Percentage of Replacement Cost for Building Code Deficiencies: Defects in Structural Elements $969,234 $399,872 41.26°/a 1. Foundation walls are compromised and are allowing for water intrusion contrar�- to code. 2. Wood rafters are rotted and ha��e collapsed. 3. Wood rafters that are present are not mechanicall�- fastened per code. Combination of Deficiencies Essential Utilities and Facilities a. There is no ADA code compliant restroom. b. Door hardware is not ADA code compliant. c. There is no ADA code compliant route to all le� els. d. Stairwa�-s do not ha��e code required handsails. e. Stair�va�- to second floor is not code compliant for rise and run of tread. £ There is no potable water a��ailable as requi�ed b�- code. 2. Light and Ventilation a. HVAC s�-stem is not mechanical/building code compliant. b. Lighting is missing and/or not code compliant. 3. Fire Protection/Adequate Egress a. There are no code compliant smoke detectors. b. There is no code required emergenc�- notification s�-stem. c. There is no code required building sprinkler s�-stem. page132 d. ��'ood floors are �s-arped and are an impediment to code required emergenc�- egress. e. Electrical wi�ing is not code compliant. La�-out and Condition of Interior Partitions/Materials a. Doors are damaged and should be replaced. b. Windows are broken/missing and should be replaced. c. Interior walls should be repaired/repainted. d. Interior ceilings should be replaced. e. Interior wood floors should be replaced. £ Graffiti is present on interior walls. g. Concrete floor is cracked/damaged creating an impediment to code requi�ed egress. 5. Exterior Construction a. The roof is damaged/missing and allowing for water intrusion contrar�- to code. b. Windows are broken/missing allowing for water intrusion contrar�- to code. c. Exterior surfaces should be repaired/repainted. d. Exterior doors are damaged/missing allowing for water intrusion contrar�- to code. e. Chimne�- should be tuck pointed to pre��ent water intrusion per code. Description of Code Deficiencies 1. Foundation is cracked/damaged allowing for water intrusion contrar�- to code. 2. Wood rafters should be mechanicall�- fastened per code. 3. There is no ADA code compliant restroom. 4. Door hardware should be replaced to compl�-with ADA code. 5. An ADA compliant route should be created bett�een all le� els. 6. Code required handsails should be installed on all stairwa�-s. 7. Stairwa�- to second le��el is not code compliant for rise and run of tread. 8. Potable water should be pro��ided per code. 9. The HVAC s�-stem should be replaced to compl�- with mechanical/building code. 10. Lighting should be installed to compl�-with code. 11. There are no code required smoke detectors. 12. There is no code required emergenc�- notification s�-stem. 13. There is no code required building sprinkler s�-stem. 14. Wood floors should be replaced to create an unimpeded emergenc�- e�ess per code. 15. Electrical wiring should be replaced to compl�-with code. 16. Concrete flooring should be replaced to create an unimpeded means of emergenc�- egress per code. 17. Roof should be replaced to pre��ent water intrusion per code. 18. Windows should be replaced to pre��ent water intrusion per code. 19. Exterior doors should be replaced to pre� ent water intrusion per code. 20. Chimne�- should be repaired to pre��ent water intrusion per code. Overview of Deficiencies This �eenhouse has not been operational for se��eral �-ears. Electrical lighting and wi�ing is not code compliant. The HVAC s�-stem is not code compliant. Access bett�een all le� els is not ADA code compliant. Roofing, exterior doors and windows ha� e all failed and are allowing for water intrusion, which is contrar�- to code. There is no ADA code compliant restroom. There are no code requi�ed smoke detectors. There is no code required emergenc�- notification s�-stem. There is no building sprinkler s�-stem. All interior doors ha� e failed. All interior walls need repair/repainting. All ceilings need repair/replacement. Flooring has failed and is an impediment to emergenc�- egress. O:A17ProjA170268\400 Design\406 Reports\Building Reports\170268 20170601 D 2160 Highwar 13 Greenhouse Builcling Report.docs Mendota Motel Redevelopment TIF District Building Code, Condition Deficiency and Context Analysis Report Ma�-15, 2017 Parcel No. & Building Name: Address: Parcel ID: Inspection Date(s) & Time(s) Inspection T�-pe: Parcel No. G Greenhouse Residence 2164 Highwa�-13, Mendota Heights, MN 55120 277520005110 Ma�- 4, 2017, 1:OOpm Interior and E�terior page 133 Summar�- of Deficiencies It is our professional opinion that this building is Substandard because: - Substantial reno�ation is required to correct Conditions found. - Builcling Code deficiencies total more than 15% of replacement cost, NOT including ener�- code deficiencies. Estimated Replacement Cost: Estimated Cost to Correct Building Code Deficiencies: Percentage of Replacement Cost for Building Code Deficiencies: Defects in Structural Elements 1. Deteriorating plaster wall board under windows shows e�idence of water intrusion. 2. E�sting ceiling damaged from roof leaks. 3. Isitchen hardwood flooring missing due to water issues. Combination of Deficiencies $147,113 $47,803 32.5°/a 1. Essential Utilities and Facilities a. Basement bathroom fixtures and spacing do not meet code. b. Numerous nonmetallic sheathed electrical wi�ing not installed per electrical code. c. Lack of code compliant GFCI and AFCI receptacles throughout house. 2. Light and Ventilation a. E�sting forced-air furnace does not meet current code 3. Fire Protection/Adequate Egress a. Fire detectors are not in good working order and are not hardwired. b. Lack of proper CO detectors. c. Numerous wall penetrations are not fi�e sealed. d. Ele� ated threshold bettveen kitchen and li� ing room not code compliant. e. Exterior concrete entrance stairs do not meet current riser/tread code. £ Basement stairs do not meet current rise/tread code. page 134 La�-out and Condition of Interior Partitions/Materials a. Stair tread and risers do not meet code. b. Corridors in basement do not meet code for width. c. Interior walls are in poor condition and need paint and wall repair. d. Staining and missing wall board due to roof leaks. e. Signs of rodent damage in se��eral areas of ceiling. £ Flooring throughout house is dated, worn and needs replacement/updating. g. Isitchen hardwood floor has been damaged from cat urine. 5. Exterior Construction a. Se� eral window frames are rotted allowing water intrusion. b. Exposed wood surfaces need to be sealed to pre� ent water intrusion. c. Stone fa�ade is lacking proper tuck-point allowing water intrusion. d. Foundation stucco coating delaminating allowing water intrusion. e. Concrete sidewalk is cracked and hea� ing in se� eral areas. £ Well-head protrudes abo� e concrete sidewalk causing tripping hazard. g. Roof shingles are showing wear, curling and � egetati� e�owth. Description of Code Deficiencies 1. Modif�- e�sting basement corridors to pro��ide code-compliant accessibilit�-. 2. Modif�- e�sting basement ceiling to code compliant height. 3. Replace non-compliant entrance door hardware to meet code. 4. Repair areas of deteriorating plaster wall board under windows that ha��e e��idence of water intrusion. 5. Repair areas of e�isting ceiling damaged from roof leaks. 6. Repair kitchen hardwood flooring that was remo� ed due to water issues. 7. Replace non-compliant entrance concrete stairs to meet tread/riser code. 8. Replace non-compliant basement stairs to meet tread/riser code. 9. Repair une��en sidewalk sections leading to entr���a�-s to correct tripping hazard. 10. Modif�- rear sidewalk to eliminate wellhead protrusion/tripping hazard in concrete sidewalk area. 11. Modif�- e�sting floor threshold bett�een kitchen and li� ing room to meet code. 12. Modif�- underside of open basement stairs to meet fi�e code requirements. 13. Install hardwired smoke detectors for the entire house per code. 14. Install CO detectors outside bedsooms per code. 15. Numerous wall penetrations need to be fi�e-stopped to meet code. 16. Replace rotted windows and window frames to pre��ent water intrusion. 17. Paint all wood surfaces to pre��ent water intrusion. 18. Repoint stone fa�ade to pre��ent water intrusion. 19. Repair and repaint e�posed metal lintels abo��e windows to pre��ent rusting and structural damage. 20. Repair foundation wall coating to pre��ent water intrusion. 21. Replace exterior water faucets with code compliant fsost-proof hose bibs with requi�ed �acuum breakers. 22. Replace roof and flashings to pre� ent water intrusion. 23. Repair/replace rusting chimne�- roof flashing to pre� ent water intrusion. 24. Replace code-deficient fi�nace. 25. Replace e�sting thermostat with code compliant pro�amable thermostat. 26. Replace non-�ounded oudets throughout house to meet code. 27. Pro��ide code required AFCI protected receptacles in li�ing room, bedsoom and hallwa�-s. 28. Pro��ide code requi�ed GFCI protected receptacles in bathrooms, kitchen and other wet locations. page135 29. Repair open electrical conduit pull box on e�terior of house. 30. Replace non-compliant basement bathroom fixtures to meet code and clearances. 31. Replace/repair nonmetallic sheathed electrical wiring that is not installed per electrical code. Overview of Deficiencies This house was built in 1955 as a single famil�-, single stor�- home with basement. Newer exterior metal siding is present. Windows that were installed se��eral �-ears ago are showing e�treme window frame rotting. The roof is showing age with shingle curling and ��egetati��e �owth. The concrete sidewalks are cracked and pose a tripping hazard. The poured concrete stairs do not meet rise/tread codes and need to be replaced. Interior electrical is dated and does not pro��ide adequate code required GFCI and AFCI oudets. Much of the interior room oudets are non-�ounded and do not meet current codes. Basement stairs are not code compliant for rise/tread and corridors in basement are narrower than code requires. Basement bathroom does not meet current code for fiYtures and spacing and needs to be replaced. The general interior of the home is � er�- dated; walls and floors show wear and age, and the house has a strong odor of cat urine. O:A17ProjA170268\400 Design\406 Reports\Building Reports\170268 20170601 G 2164 Highwar 13 Greenhouse Residence Building Report 1lnalrsis Reportdocs Mendota Motel Redevelopment TIF District Building Code, Condition Deficiency and Context Analysis Report Ma�- 25, 2017 Parcel No. & Building Name: Address: Parcel ID: Inspection Date(s) & Time(s) Inspection T�-pe: Parcel Na I Motel 2180 Highwa�-13, Mendota Heights, MN 55120 272840001080 Ma�- 4, 2017, 2:OOpm Interior and E�terior page136 Summar�- of Deficiencies It is our professional opinion that this building is Substandard because: - Substantial reno�ation is required to correct Conditions found. - Builcling Code deficiencies total more than 15% of replacement cost, NOT including ener�- code deficiencies. Estimated Replacement Cost: Estimated Cost to Correct Building Code Deficiencies: Percentage of Replacement Cost for Building Code Deficiencies: Defects in Structural Elements 1. None Combination of Deficiencies $1,287,088 $236,704 18.4°/a 1. Essential Utilities and Facilities a. Dr�-er � ent needs to be replaced with smooth � enting per code. b. Enclose miscellaneous low-��oltage bo�es that are missing co� ers. c. Repair loose electrical receptacles at room unit-� entilators. d. It appears no GFCI or AFCI protected receptacles are present in locations per code. e. Basement bathroom does not meet current code and needs modifications. £ No code required � acuum breaker present on utilit�- sink faucet. 2. Light and Ventilation a. Forced air fi�nace in manager's apartment does not meet current code. b. Exterior windows of each room ha� e been remo��ed and infilled. 3. Fire Protection/Adequate Egress a. Building is non-sprinkled- install building ��ide fi�e sprinkler s�-stem to meet code. b. Penetrations in floor and walls bet�veen lower le�el and upper rooms are not fi�e/smoke sealed. page 137 c. Exterior sidewalk at each room does not meet code due to step up to each room. Modif�- and raise e�terior sidewalk to pro� ide code-compliant accessibilit�- to rooms. d. Install ele� ator to lower le��el to pro� ide code-compliant public accessibilit�-. e. Modif�-parking lot spaces to pro�ide code-required handicap parking. There are currentl�- no handicap parking spaces. La�-out and Condition of Interior Partitions/Materials a. Room entrance door hardware does not meet current code for egress. b. Replace non-compliant stair handsails leading to lower le��els. c. E�isting emergenc�- escape and rescue «-ido«- «-ell does not meet code requirements for proper dimension and e�iting. d. Replace loose and missing floor tile in public basement to pre��ent tripping/slipping hazard. e. Modif�- non-compliant stairwa�- ceiling to meet code requi�ed height. 5. Exterior Construction a. Exterior siding has numerous areas of damaged and missing sections, ill-fitting joints, bare wood and e�posed spra�--foam insulation that is letting water in. b. Se��eral sections of soffit panels are loose and falling, allowing for water intrusion and animal habitat. c. Repair brick knee-wall that is tipping out from backer wall, allowing possible water intrusion and structural failure. d. Repair foundation cracks to pre��ent water intrusion. e. Replace exterior water faucets with code-compliant freeze proof and requi�ed � acuum breaker. Description of Code Deficiencies 1. Modif�- exterior sidewalk to pro��ide code-compliant accessibilin- to rooms. 2. Install ele��ator to lower le� el to pro�ide code-compliant public accessibilit�-. 3. Modif�-parking lot spaces to pro�ide code-required handicap parking. 4. Replace non-compliant room entrance door hardware to meet code. 5. Replace non-compliant stair handsails leading to lower le��els. 6. Modif�- emergenc�- escape and rescue widow well in lower le��el to meet code dimensions. 7. Replace loose and missing floor tile in public basement to pre��ent tripping/slipping. 8. Modif�- non-compliant stairwa�- ceiling to meet code requi�ed height. 9. Install buildin� wide fire sprinkler s�-stem to meet code. 10. Fire block/draft stop numerous penetrations bett�een lower le��el and upper rooms. 11. Repair damaged and missing exterior sicling in numerous locations to pre��ent water intrusion. 12. Repair loose soffit panels to pre��ent water intrusion and animal habitat. 13. Repair brick knee-wall that is tipping out to pre� ent water intrusion and structural failure. 14. Repair foundation cracks to pre��ent water intrusion. 15. Replace e�terior water faucets with code-compliant freeze proof and required � acuum breaker. 16. Replace code-deficient furnace in manager's apartment. 17. Replace code-deficient dr�-er ��ent with smooth � enting. 18. Enclose misc. low-� oltage boxes that are missing co� ers. 19. Repair loose electrical receptacles at room unit � entilators. 20. Pro�ide GFCI protected receptacles in wet locations per code. 21. Pro�ide AFCI protected receptacles per code. 22. Modif�- non-compliant basement bathroom to meet code. 23. Install code-compliant � acuum breaker on utilit�- sink faucet. page138 Overview of Deficiencies This building was constructed in 1949 as a single le� el hotel. O��er the �-ears se��eral updates ha��e been completed, to the exterior. All room exterior windows ha�e been remo��ed and infilled with ill-fitting wood panels eliminating natural light and � entilation to each room. Much of the exterior sicling on the back side of the building is in need of repair to eliminate water intrusion and animal habitat. ADA accessibilin- is non- e�stent with lack of curb cuts in sidewalks, step-up into all the rooms and non-compliant stairs to the public basement. The interior of the rooms is � er�- dated and lacks code compliant electrical GFCI and AFCI outlets. Furnishings are old and walls and floors need updating. The entire building lacks a fi�e sprinkler s�-stem and it is uncertain if partition walls bet��een units meet fi�e rating codes. O:A17ProjA170268\400 Design\406 Reports\Building Reports\170268 20170601 I 2180 Highwar 13 �lfotel- Builcling Reportllnalrsis Reportdocs page139 APPENDIX C Building Replacement Cost RepoYts Code Deficienc�� Cost Reports Photographs Mendota Motel Redevelopment TIF District Replacement Cost Report ������� ���� Square Foot Cost Estimate Report r.�c�� s€��oi�r� Estimate Name: Greenhouse City of Mendota Heights 2160 Highway 13 , Mendota Heights , Minnesota , 55118 Greenhouse with Wood Clapboard / Wood Building Type: Frame Location: MENDOTA HEIGHTS, MN Story Count: 1 Story Height (L.F.): 10 FloorArea (S.F.): LaborType: Basement Included: Data Release: Cost Per Square Foot Building Cost: 3,400 OPN No Year 2017 $285.08 $969,234.64 page140 Date .;r� � � ,;.: r,., e„� � ., _;� _ - _ , � : d��, �� �-_ � � ,L: ,-- -� ,� �.0 - �; �' ' �'�+' � � � �. �' � --e--*: _.,,� �� :� --�r � �� � � r ,•, K .... �A —� .,�iL �. -- Y ,F� : ,.� —` -•• ' - � _ �Ar . ,�, , �� ���.;T� _—" --�„�;.. � .�. ,=-�. �. Costs are derived from a building model with basic components. Scope differences and market conditions can cause costs to vary significantly. % of Total Cost Per S.F. A1010 Standard Foundations Foundation wall, CIP, 4' wall height, direct chute, .148 CY/LF, 7.2 PLF, 12" thick Strip tooting, concrete, reintorced, load 11.1 KLF, soil bearing capacity 6 KSF, 12" deep x 24" wide Strip footing, concrete, reinforced, load 11.1 KLF, soil bearing capacity 6 KSF, 12" deep x 24" wide Spread footings, 3000 PSI concrete, load 25K, soil bearing capacity 3 KSF, 3' - 0" square x 12" deep Spread footings, 3000 PSI concrete, load 100K, soil bearing capacity 6 KSF, 4' - 6" square x 15" deep A1030 Slab on Grade Slab on grade, 4" thick, non industrial, reinforced Slab on grade, 5" thick, light industrial, reinforced A2010 Basement Excavation Excavate and fill, 10,000 SF, 4' deep, sand, gravel, or common earth, on site storage Excavate and fill, 10,000 SF, 8' deep, sand, gravel, or common earth, on site storage A2020 Basement Walls Foundation wall, CIP, 12' wall height, pumped, .444 CY/LF, 21.59 PLF, 12" thick 61010 Floor Construction Cast-in-place concrete column, 12" square, tied, 200K load, 12' story height, 142 Ibs/LF, 4000PS1 Wood column, 6" x 6", 20' x 20' bay, 12' unsupported height, 90 BF/MSF, 50 PSF total allowable load 19.56 7.33 4.02 3.65 0.21 5/7/2017 Cost � 66,524.07 24,921.37 13,668.71 12,426.10 728.01 4.35 14,779.88 32.75 111,349.03 5.53 18,805.03 27.22 92,544.00 4.27 14,522.15 0.33 1,119.96 3.94 13,402.19 22.59 76,806.38 22.59 76,806.38 •ri:�ii � 23.96 81,484.94 9.99 33,970.13 � �: 258.83 Mendota Motel Redevelopment TIF District Replacement Cost Report LHB Project No. 170268 Page 1 of 3 Parcel D, Greenhouse 61020 62010 62020 62030 63010 Wood beam, 3- 2 x 14, Douglas Fir No. 2, 243 Ibs/LF @ 18' span Flat slab, concrete, with drop panels, 6" slab/2.5" panel, 12" column, 15'x15' bay, 75 PSF superimposed load, 153 PSF total load Roof Construction Wood roof truss, 2' OC, 60' span, 4:12 pitch, 1' overhang, 5/8" sheathing, 1x8 fascia, R30 insulation Exterior Walls Wood siding, 2"x6" studs 24"OC, insulated wall, 1" x 5" rabbetted cedar bevel siding Exterior Windows Aluminum flush tube frame, for 1/4"glass,l-3/4"x4", 5'x6' opening, 1 intermediate horizontal Glazing panel, plate glass, 1/4" thick, clear Exterior poors Door, aluminum & glass, without transom, full vision, double door, hardware, 6'-0" x 7'-0" opening Door, steel 18 gauge, hollow metal, 1 door with frame, "A" label, 3'-0" x 7'-0" opening Roof Coverings Asphalt roofing, strip shingles, inorganic, Class A, 4" slope, 210-235 Ibs/SQ Insulation, rigid, roof deck, polyisocyanurate, 2#/CF, 3" thick Flashing, terne coated, no backing, 28 ga, > 2000 Ibs Gutters, box, aluminum, .032" thick, 5", enameled finish Downspout, aluminum, rectangular, 2" x 3", enameled, .024" thick C1010 Partitions Wood partition, 5/8" fire rated gypsum board face, 1/4"sound deadening gypsum board, 2x4 @ 16" OC framing, same opposite face, 1.5" fiberglas C1020 Interior poors Door, single leaf, kd steel frame, hollow metal, commercial quality, flush, 3'- 0" x 7'-0" x 1-3/8" C1030 Fittings Toilet partitions, cubicles, ceiling hung, stainless steel C3010 Wall Finishes Painting, interior on plaster and drywall, brushwork, primer & 2 coats Painting, interior on plaster and drywall, brushwork, primer & 2 coats C3020 Floor Finishes Vinyl, composition tile, maximum Tile, quarry tile, mud set, minimum C3030 Ceiling Finishes Acoustic ceilings, 3/4" fiberglass board, 24" x 48" tile, tee grid, suspended support D2010 Plumbing Fixtures Water closet, vitreous china, bowl only with flush valve, wall hung Urinal, vitreous china, stall type Lavatory w/trim, vanity top, PE on CI, 19" x 16" oval Kitchen sink w/trim, countertop, PE on CI, 24" x 21", single bowl Service sink w/trim, PE on CI, corner floor, 28" x 28", w/rim guard Water cooler, electric, wall hung, dual height, 14.3 GPH page141 0.16 560.38 13.73 46,695.60 7.89 26,831.71 7.89 26,831.71 10.19 34,636.55 10.19 34,636.55 7.51 25,535.75 4.71 16,014.60 2.8 9,521.15 4.77 16,215.15 0.61 2,087.74 4.16 14,127.41 6.15 20,878.86 2.3 7,806.23 2.03 6,885.58 1.18 4,009.39 0.58 1,970.24 0.06 207.42 � � � 5.33 18,130.75 5.33 18,130.75 3.08 10,463.99 3.08 0.45 0.45 2.53 1.6 0.93 3.33 2.55 0.78 5.66 5.66 15.91 6.82 0.37 2.35 5.11 0.5 0.76 10,463.99 1,519.25 1,519.25 8,624.94 5,454.51 3,170.43 11,325.90 8,683.27 2,642.63 19,240.67 19, 240.67 54,103.45 23,186.59 1,259.79 8,001.51 17,364.02 1,706.98 2,584.56 Mendota Motel Redevelopment TIF District Replacement Cost Report LHB Project No. 170268 Page 2 of 3 Parcel D, Greenhouse D2020 Domestic Water Distribution Electric water heater, commercial, 100< F rise, 120 gal, 36 KW 147 GPH D3010 Energy Supply Commercial building heating system, tin tube radiation, torced hot water, 10,000 SF, 100,000 CF, total 2 floors D3050 Terminal & Package Units Splt sys, air cooled condensing unit, schools and colleges, 10,000 SF, 38.33 ton D4010 Sprinklers Wet pipe sprinkler systems, steel, light hazard, 1 floor, 10,000 SF D4020 Standpipes Wet standpipe risers, class III, steel, black, sch 40, 4" diam pipe, 1 floor D5010 Electrical Service/Distribution Overhead service installation, includes breakers, metering, 20' conduit & wire, 3 phase, 4 wire, 120/208 V, 200 A Feeder installation 600 V, including RGS conduit and XHHW wire, 200 A Switchgear installation, incl switchboard, panels & circuit breaker, 120/208 V, 3 phase, 400 A D5020 Lighting and Branch Wiring Receptacles incl plate, box, conduit, wire, 2.5 per 1000 SF, .3 watts per SF Wall switches, 1.0 per 1000 SF Miscellaneous power, to .5 watts Central air conditioning power, 4 watts Fluorescent tixtures recess mounted in ceiling, 1.6 watt per SF, 40 FC, 10 fixtures @32watt per 1000 SF D5030 Communications and Security Communication and alarm systems, tire detection, addressable, 25 detectors, includes outlets, boxes, conduit and wire Fire alarm command center, addressable without voice, excl. wire & conduit D5090 Other Electrical Systems operated, 3 phase, 4 wire, 277/480 V, 15 kW E1090 Other Equipment F1010 Special Structures Greenhouse, shell-stock, commercial-truss frame, over 5,000 SF, economy . . � SubTotal 100% Contractor Fees (General Conditions,Overhead,Profit) 10.00% Architectural Fees 0.00% User Fees 0.00% page142 3.23 3.23 11.06 11.06 12.76 12.76 3.53 3.53 0.91 0.91 3.30 0.87 0.69 1.74 8.48 1.93 0.29 0.16 0.64 5.46 2.75 0.96 1.79 0.09 0.09 � 0 10,967.38 10,967.38 37,615.39 37,615.39 43,375.29 43,375.29 11,998.57 11,998.57 3,085.78 3,085.78 11,216.50 2,962.85 2,333.05 5,920.60 28,821.29 6,553.91 976.31 558.21 2,176.34 18,556.52 9,344.90 3, 254.82 6,090.08 314.51 314.51 0 36.69 124,738.00 36.69 124,738.00 $259.16 $881,122.40 $25.92 $88,112.24 $0.00 $0.00 $0.00 $0.00 Mendota Motel Redevelopment TIF District Replacement Cost Report LHB Project No. 170268 Page 3 of 3 Parcel D, Greenhouse page 143 Mendota Motel Redevelopment TIF District Code Deficiency Cost Report Parcel D- 2160 Highway 13 Mendota Heights, Minnesota 55118 - Parcel ID: 277520005420 Green House Accessibility Items Restroom Install ADA compliant restroom Door Hardware Install ADA compliant door hardware Elevator/Ramps Install code compliant elevator between levels Install code compliant ramps between levels Stairways Modify stairway to second floor to comply with code Install code required handrails at all stairways Drinking Fountain Install code compliant drinking fountain Structural Elements Foundation Repair/replace foundation to prevent water intrusion per code Rafters Mechanically fasten rafters to comply with code Exiting Flooring Replace wood flooring to comply with code for egress Replace concrete flooring to comply with code for egress Fire Protection Smoke Detectors Install code required smoke detectors Emergency Notification System Install code required emergency notification system per code Sprinkler System Install code required building sprinkler system Exterior Construction Chimney Repair chimney to prevent water intrusion per code Windows Replace windows to prevent water intrusion per code Doors Mendota Motel Redevelopment TIF District LHB Project No. 170268 Page 1 of 2 $ 9.99 $ 250.00 $ 70,000.00 $ 7,500.00 $ 2,500.00 $ 150.00 $ 0.76 SF 3400 $ 33,966.00 EA 12 $ 3,000.00 EA 1 $ 70,000.00 EA 4 $ 30,000.00 Lump 1 $ 2,500.00 EA 6 $ 900.00 SF 3400 $ 2,584.00 7.33 SF 0.75 SF $ 2.55 SF $ 5.53 SF $ 0.96 SF $ 1.79 SF $ 4.44 SF $ 2,500.00 $ 7.51 Lump SF 3400 $ 24,922.00 3400 $ 2,550.00 3400 $ 8,670.00 3400 $ 18,802.00 3400 $ 3400 $ 3400 $ 1 $ 3400 $ 3,264.00 6,086.00 15,096.00 2,500.00 25,534.00 Code Deficiency Cost Report Parcel D, Greenhouse page 144 Replace doors to prevent water intrusion per code Roof Construction Roofing Remove existing roofing material Install code compliant roofing to prevent water intrusion Mechanical- Electrical Mechanical Replace HVAC system to comply with code Electrical Install code compliant lighting Install code compliant wiring $ 4.77 SF $ 0.75 SF $ 6.15 SF 3400 $ 16,218.00 3400 $ 2,550.00 3400 $ 20,910.00 $ 23.82 SF 3400 $ 80,988.00 $ 5.46 SF 3400 $ 18,564.00 $ 3.02 SF 3400 $ 10,268.00 Total Code Improvements $ 399,872 Mendota Motel Redevelopment TIF District Code Deficiency Cost Report LHB Project No. 170268 Page 2 of 2 Parcel D, Greenhouse Mendota Motel Redevelopment TIF District page 145 Photos: Parcel D- Greenhouse - 2160 Highway 13 � � . . ,, � , � ,, � . � ,�� ,� � � � " ;�,� ,5 , � ' r j� " �,}" � ��. � � � ��X} F� � �'C J�g "Rfq �..` " 'A 4 ,� Sa.+Li�y.�'V�� ;'p .., �� � �� " 4 _ ,� '� P��F ° �4a ': ,: ' ��� ���,�� � : � .�,�,,,� �;' � . ry,�t - ��p � � � ` v^ F M1 . �n�� � � �� �,.�.�:� ���3 �" �� ��� " �s,J' z�t 1� ( ���.:n ��e.., .L�e. ... 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Y� J, ''�5."� '.�. 4 3,.,n`l��. � ��. i _ page 156 P1130231.JPG P1130233.JPG P1130234.JPG � P1130235.JPG P1130238.JPG P1130236.JPG P1130237.JPG Mendota Motel Redevelopment TIF District Page 12 of 12 Photos LHB Project No. 170268 Parcel D, Greenhouse Mendota Motel Redevelopment TIF District Replacement Cost Report F`���'��� ���`� Square Foot Cost Estimate Report � -�: �i�o�t�ar� Estimate Name: Mendota Heights- Greenhouse Residence Mendota Heights 2164 Highway 13, Mendota Heights, Minnesota, 55120 Building Type: Average 1 Story with Wood Siding - Wood Frame Location: MINNEAPOLIS, MN Story Count: 1 Story Height (L.F.): 8 FloorArea (S.F.): 1256 LaborType: RES Basement Included: No Data Release: Year 2017 Cost Per Square Foot: $117.13 Building Cost: $147,112.90 � . Footing excavation, building, 26' x 46', 4' deep Footing systems, 10" thick by 20" wide footing Block wall systems, 8" wall, grouted, full height Floor slab systems, 4" thick slab Exterior wall framing systems, 2" x 6", 16" OC Exterior wall framing systems, 2" x 6", 16" OC Partition framing systems, 2" x 4", 16" OC page157 Date: 5/30/2017 .r .. ""Y`� ,y � e" 'F� � > . . . 1µ�. k � _�•�'F�J ... )� . ..a— y f � . , 't � - -- ��� ����`�� r " � -ti�. � � .r;�..s" �+y��� � . � ,. �� �� � °�'�`�"' ��.�.�. ..�" > > -� + � +��i � ' � _ .�,.�,-+ -.v� ry.� _:�' � ��,� , `x"� '���=_� . � _ .-.,._,,,�_... Costs are derived from a building model with basic components. Scope differences and market conditions can cause costs to vary significantly. % of Total Cost Per S.F Wood siding systems, 1/2" x 8" beveled cedar siding, "A" grade Wood siding systems, 1/2" x 8" beveled cedar siding, "A" grade Non-rigid insul, batts, fbgls, kraft faced, 6" thick, R19, 15" wide Non-rigid insul, batts, fbgls, kraft faced, 12" thick, R38, 15" wide Double hung window systems, builder's quality wood window 2' x 3' Door systems, solid core birch, flush, 3' x 6'-8" Storm door, al, combination, storm & screen, anodized, 3'-0" x 6'-8" Gable end roofing, asphalt, roof shingles, class A Wall system, 1/2" drywall, taped & finished Wall system, 1/2" drywall, taped & finished 1/2" gypsum wallboard, taped & finished ceilings Birch, flush door, hollow core, interior Mendota Motel Redevelopment TIF District LHB Project No. 170268 Page 1 of 2 Cost 2.43 3,050.47 � � 2.69 3,376.02 9.54 11,977.72 4.33 5,442.42 0.46 4.9 2.68 9.65 0.91 0.85 1.63 5.67 2.22 0.67 582.5 6,148.17 3,368.02 12,115.70 1,147.89 1,067.47 2,047.78 7,125.08 2,784.96 844.32 5.51 6,924.52 � 7.9 9,917.98 2.97 3,725.29 2.75 3,456.76 3.88 4,868.56 Replacement Cost Report Parcel G. Greenhouse Residence Closet door, bi-fold, pine, louvered, 6'-0" x 6'-8" Carpet, Olefin, 22 oz Padding, felt, 32 oz to 56 oz, minimum Resilient flooring, vinyl sheet goods, backed, .070" thick, maximum Resilient flooring, prefinished, oak, 2-1/2" wide Resilient flooring, sleepers, treated, 16" OC, 1" x 3" Resilient flooring, subfloor, plywood, 1/2" thick Resilient flooring, ceramic tile, color group 2, 1" x 1" Kitchen, average grade Sinks, stainless steel, single bowl 22" x 25" Water heater, electric, 40 gallon Three fixture bathroom installed with vanity Furnace, gas heating only, 100 MBH, area to 1200 SF Intermittent pilot, 100 MBH furnace Supply duct, rectangular, area to 1200 SF, rigid fiberglass Return duct, sheet metal galvanized, to 1500 SF Lateral ducts, flexible round 6" insulated, to 1200 SF Register elbows, to 1500 SF Floor registers, enameled steel w/damper, to 1500 SF Return air grille, area to 1500 SF 12" x 12" Thermostat, manual, 1 set back Plenum, heating only, 100 MBH 200 amp electric service Wiring device systems, average to 1200 S.F. Light fixture systems, average to 1200 S.F. SubTotal Contractor Fees (General Conditions,Overhead,Profit) Architectural Fees User Fees � r** Indicates Assemblies or Components have been customized. 100 % 10.00 % 0.00 % 0.00 % page 158 3.59 1.04 0.44 1.11 3.62 1.08 0.86 0.61 5.65 1.42 1.29 4.25 0.89 0.2 0.83 1.02 0.91 0.52 0.33 0.1 0.11 0.14 1.68 2.38 0.78 4,507.15 1,308.59 558.65 1,398.83 4,548.89 1,356.61 1,076.87 763.63 7,092.78 1,787.83 1,614.66 5,332.56 1,116.02 256.23 1,040.81 1,278.39 1,146.74 653.02 412.9 123.82 136.48 170.61 2,106.35 2,993.49 985.46 $106.48 $133,739.00 $10.65 $13,373.90 $0.00 $0.00 $0.00 $0.00 Mendota Motel Redevelopment TIF District Replacement Cost Report LHB Project No. 170268 Page 2 of 2 Parcel G, Greenhouse Residence Mendota Motel Redevelopment TIF District Code Deficiency Cost Report Parcel G- 2164 Highway 13, Mendota Heights, MN 55120 - Parcel ID 277520005110 Greenhouse Residence Accessibility Items Modify existing basement corridors to provide code-compliant accessibility $ 2,500.00 Lump Modify existing basement ceiling to code compliant height $ 2,650.00 Lump Replace non-compliant entrance door hardware to meet code $ 250.00 Ea Structural Elements Repair areas of deteriorating plaster wall board under windows that have evidence of water intrusion $ Repair areas of existing ceiling damaged from roof leaks $ Repair kitchen hardwood flooring that was removed due to water issues $ Exiting Stairs: Replace non-compliant entrance concrete stairs to meet 3.50 SF 3.50 SF 3.75 SF tread/riser code $ 3,800.00 Lump Replace non-compliant basement stairs to meet tread/riser code $ 1,900.00 Lump Sidewalks: Repair uneven sidewalk sections leading to entryways $ 8.00 SF Modify rear sidewalk to eliminate wellhead protrusion/tripping hazard in concrete sidewalk area $ 8.00 SF Modify existing floor threshold between kitchen and living room to met code $ 450.00 Lump Fire Protection Modify underside of open basement stairs to meet fire code requirements $ 2.00 SF Fire Alarms Install hardwired smoke detectors- entire house $ 250.00 Ea Install CO detectors outside bedrooms $ 250.00 Ea Numerous wall penetrations need to be fire-stopped to meet code Exterior Construction Replace rotted windows/frames to prevent water intrusion Paint all wood surfaces to prevent water intrusion Repoint stone fa�ade to prevent water intrusion Repair and repaint exposed metal lintels above windows to prevent rusting and water intrusion Repair foundation wall coating to prevent water intrusion $ 2.00 LF $ 2,200.00 Ea $ 2.50 SF $ 9.50 SF $ 3.25 LF $ 2.50 SF page 159 50 $ 15 $ 36 $ $ $ 1 $ 1 $ 120 $ 65 $ 1 $ 60 $ $ 5 $ 3 $ 250 $ 6 $ 225 $ 30 $ 24 $ 85 $ 2,500.00 2,650.00 500.00 175.00 52.50 135.00 3,800.00 1,900.00 960.00 520.00 450.00 120.00 1,250.00 750.00 500.00 13,200.00 562.50 285.00 78.00 212.50 Mendota Motel Redevelopment TIF District Code Deficiency Cost Report LHB Project No. 170268 Page 1 of 2 Parcel G, Greenhouse Residence page 160 Replace exterior water faucets with code compliant frost-proof hose bibs with required vacuum breakers $ 150.00 Ea 2$ Roof Construction Replace roof and flashings to prevent water intrusion $ 3.21 SF 1200 $ Repair/replace rusting chimney roof flashing to prevent water intrusion $ 650.00 Lump 1 $ $ Mechanical- Electrical Forced-air furnace: Replace code-deficient furnace Replace existing thermostat with code compliant programable Electrical outlets: Replace non-grounded outlets throughout house to meet code Provide AFCI protected receptacles per code Living Room Bedrooms Hallways Provide GFCI protected receptacles per code Bathrooms Kitchen Other wet locations Repair open electrical conduit pull box on exterior of house Replace non-compliant basement bathroom Demo New construction Replace/repair nonmetallic sheathed electrical wiring that is not installed per electrical code � $ 2,300.00 Lump 1 $ $ 150.00 EA 1 $ $ 100.00 EA 24 $ $ $ 250.00 EA 8 $ $ 250.00 EA 3 $ $ 250.00 EA 1 $ $ $ 250.00 Ea 2 $ $ 250.00 Ea 2 $ $ 250.00 Ea 3 $ $ 50.00 Lump 1 $ $ $ 950.00 Lump 1 $ $ 1,200.00 Lump 1 $ $ 600.00 Lump 1 $ $ Total Code Improvements $ 300.00 3,852.00 650.00 2,300.00 150.00 2,400.00 2,000.00 750.00 250.00 500.00 500.00 750.00 50.00 950.00 1,200.00 600.00 47,803 Mendota Motel Redevelopment TIF District Code Deficiency Cost Report LHB Project No. 170268 Page 2 of 2 Parcel G, Greenhouse Residence Mendota Motel Redevelopment TIF District page 161 Photos: Parcel G- Greenhouse Residence - 2164 Highway 13 � "��. l i �. �� � � . d " . 4 �'�` �' � - ` { � �p ,-�.j;. , o �: . � A � ,. , 1 �N� .� r � , ,. . � �� ; � . �C � , � ,' �, , . � �� � 1 � ^*. , . . � . r ,�, .. � W . 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P1130290.JPG P1130291.JPG P1130292.JPG Mendota Motel Redevelopment TIF District Page 9 of 9 Photos LHB Project No. 170268 Parcel G, Greenhouse Residence Mendota Motel Redevelopment TIF District Replacement Cost Report ������� ���� Square Foot Cost Estimate Report r.�c;.�� �€as�oi�r.� Estimate Name: Mendota Heights Motel Mendota Heights 2180 Highway 13 , Mendota Heights , Minnesota , 55120 Motel, 1 Story with Wood Clapboard / Wood Building Type: Frame Location: MINNEAPOLIS, MN Story Count: 1 Story Height (L.F.): 9 FloorArea (S.F.): LaborType: Basement Included: Data Release: Cost Per Square Foot Building Cost: 9860 OPN No Year 2017 Quarter 2 $130.54 $1,287,088.03 A1010 Standard Foundations thick 12" deep x 24" wide A1030 Slab on Grade Slab on grade, 4" thick, non industrial, reinforced A2010 Basement Excavation storage A2020 Basement Walls yr thick page170 Date: 5/30/2017 ; � �- Y ;� ,� � A h °�' .., r � 7 p� -�•� � �: :. � .. �W' ?P ' p'{ - 7'•. S n � -` r�ti�t���dr�. I���� �'� f���? ��1� �; � ��r��',-����� ,���„r �._J �,�_.__s_��1�� �,.��I ���:1+; . .. � � a _��'i ".�= _ Costs are derived from a building model with basic components. Scope differences and market conditions can cause costs to vary significantly. % of Total Cost Per S.F. 61020 Roof Construction Wood roof, truss, 4/12 slope, 24" O.C., 30' to 43' span 62010 Exterior Walls plywood 62020 Exterior Windows Windows, wood, double hung, insulated glass, 2'-8" x 4'-6" 62030 Exterior poors Door, birch, solid core, single door, hinged, 3'-0" x 7'-0" opening 63010 Roof Coverings Asphalt roofing, strip shingles, inorganic, Class A, 4" slope, 210-235 Ibs/SQ R3.70 Flashing, aluminum, no backing sides, .019" Gutters, box, aluminum, .027" thick, 5", enameled finish Downspout, aluminum, rectangular, 2" x 3", embossed mill finish, .020" thick 9.47 6.19 3.28 5.65 5.65 0.34 0.34 3.35 3.35 7.47 7.47 5.92 5.92 5.67 5.67 4.36 4.36 4.92 2.32 1.76 0.43 0.36 0.05 Cost 93,379.59 61,031.06 32,348.53 55,706.14 55, 706.14 3,386.91 3,386.91 33,020.00 33,020.00 73,634.58 73,634.58 58,418.04 58,418.04 55,886.63 55,886.63 43,002.57 43,002.57 48,549.34 22,903.69 17,307.26 4, 257.88 3,546.69 533.82 Mendota Motel Redevelopment TIF District Replacement Cost Report LHB Project No. 170268 Page 1 of 3 Parcel I, Motel C1010 Partitions gypsum board, 2x4 @ 16" OC framing, same opposite face, 1.5" fiberglas 1/2" fire rated gypsum board, taped & finished, painted on metal furring C1020 Interior poors Door, single leaf, wood frame, 3'-0" x 7'-0" x 1-3/8", birch, hollow core C3010 Wall Finishes & 2 coats Ceramic tile, thin set, 4-1/4" x 4-1/4" C3020 Floor Finishes Carpet, tufted, nylon, roll goods, 12' wide, 36 oz Carpet, padding, add to above, 2.7 density Tile, ceramic natural clay C3030 Ceiling Finishes finish,l" x 3" wood, 16" OC furring, wood support D2010 Plumbing Fixtures Water closet, vitreous china, tank type, 2 piece close coupled Lavatory w/trim, vanity top, cultured marble, 19" x 17" Kitchen sink w/trim, countertop, steel, enameled, 24" x 21" single bowl Bathtub, recessed, PE on CI, mat bottom, 5' long D2020 Domestic Water Distribution Gas fired water heater, commercial, 100< F rise, 155 MBH input, 150 GPH D3050 Terminal & Package Units 3/4 ton, thru wall, heating. & cooling units D4010 Sprinklers Wet pipe sprinkler systems, steel, light hazard, 1 floor, 5000 SF D4020 Standpipes Wet standpipe risers, class III, steel, black, sch 40, 4" diam pipe, 1 floor D5010 Electrical Service/Distribution wire, 3 phase, 4 wire, 120/208 V, 200 A Feeder installation 600 V, including RGS conduit and XHHW wire, 200 A V, 3 phase, 400 A D5020 Lighting and Branch Wiring Receptacles incl plate, box, conduit, wire, 10 per 1000 SF, 1.2 watts per SF Wall switches, 5.0 per 1000 SF Miscellaneous power, to .5 watts @40 watts per 1000 SF D5030 Communications and Security includes outlets, boxes, conduit and wire Fire alarm command center, addressable without voice, excl. wire & conduit E1010 Commercial Equipment capacity, single operated, deluxe E1090 Other Equipment page171 10.44 7.44 2.99 1.89 1.89 2.86 1.43 1.43 7.12 4.36 0.98 1.78 4.83 4.83 20.26 5.81 4.32 0.35 9.77 1.9 1.9 4.13 4.13 4.92 4.92 1.19 1.19 1.08 0.3 0.47 0.31 7.06 2.98 1.25 0.16 2.67 2.81 2.02 0.79 1.04 0.52 0.52 0 102,890.26 73,397.58 29,492.68 18,631.56 18,631.56 28,193.58 14,140.34 14,053.24 70,166.32 42,971.48 9,619.54 17,575.30 47,598.36 47,598.36 199,751.08 57,328.69 42,588.73 3,463.02 96,370.64 18,715.07 18,715.07 40,683.69 40,683.69 48,530.82 48,530.82 11,708.41 11,708.41 10,693.00 2,954.00 4,680.00 3,059.00 69,592.67 29,387.53 12,325.79 1,579.18 26,300.17 27,685.81 19,889.51 7,796.30 10,255.60 5,095.88 5,159.72 0 Mendota Motel Redevelopment TIF District Replacement Cost Report LHB Project No. 170268 Page 2 of 3 Parcel I, Motel SubTotal Contractor Fees (General Conditions,Overhead,Profit) ArchitecturalFees User Fees �� ** Indicates Assemblies or Components have been customized. 100 % 10.00 % 0.00 % 0.00 % page172 $118.67 $1,170,080.03 $11.87 $117,008.00 $0.00 $0.00 $0.00 $0.00 Mendota Motel Redevelopment TIF District Replacement Cost Report LHB Project No. 170268 Page 3 of 3 Parcel I, Motel Mendota Motel Redevelopment TIF District Code Deficiency Cost Report Parcel I- 2180 Highway 13, Mendota Heights, MN 55120 - Parcel ID: 272840001080 Motel Accessibility Items Modify exterior sidewalk to provide code-compliant accessibility to rooms Install elevator to lower level to provide code-compliant public accessibility Modify parking lot spaces to provide code-required handicap parking Structural Elements $ 8.00 Sf $ 137,000.00 Lump $ 450.00 Lump Exiting Replace non-compliant room entrance door hardware to meet code $ Replace non-compliant stair handrails leading to lower levels $ Modify emergency escape and rescue widow well in lower level to meet code dimensions $ Replace loose and missing floor tile in public basement to prevent tripping/slipping $ Modify non-compliant stairway ceiling to meet code required height $ Fire Protection Install building-wide fire sprinkler system to meet code $ Fire block/draft stop numerous penetrations between lower level and upper rooms $ Exterior Construction Repair damaged and missing exterior siding in numerous locations to prevent water intrusion Repair loose soffit panels to prevent water intrusion and animal habitat Repair brick knee-wall that is tipping out to prevent water intrusion and structural failure Repair foundation cracks to prevent water intrusion Replace exterior water faucets with code-compliant freeze proof and required vacuum breaker Roof Construction Install proper roof flashings where roof ineets upper wall � 325.00 Ea 4.50 Lf 3,650.00 Lump 3.25 Sf 650.00 Lump 4.92 Sf 2.00 Lf 4,500.00 Lump 4.75 Sf 2,600.00 Lump 6.50 Lf 150.00 Ea 450.00 Lump Mechanical- Electrical Mechanical heating and cooling equipment: Replace code-deficient furnace in managers apartment $ 2,300.00 Lump Mendota Motel Redevelopment TIF District LHB Project No. 170268 Page 1 of 2 page 173 1160 $ 9,280.00 1 $ 137,000.00 1 $ 450.00 � - � - 22 $ 7,150.00 50 $ 225.00 1 $ 3,650.00 100 $ 325.00 1 $ 650.00 9000 $ 175 $ $ 1 $ 225 $ 1 $ 50 $ 2 $ 44,280.00 350.00 4,500.00 1,068.75 2,600.00 325.00 300.00 450.00 2,300.00 Code Deficiency Cost Report Parcel I. Motel Replace code-deficient dryer vent with smooth venting $ Electrical: Enclose misc. low-voltage boxes that are missing covers $ Repair loose electrical receptacles at room unit ventilators $ Provide GFCI protected receptacles in wet locations per code $ Provide AFCI protected receptacles per code $ Plumbing: 50.00 Lump 250.00 Lump 225.00 Lump 250.00 Ea 250.00 Ea page 174 50.00 250.00 225.00 7,000.00 12,500.00 Modify non-compliant basement bathroom to meet code $ 1,700.00 Ea 1$ 1,700.00 Install code-compliant vacuum breaker on utility sink faucet $ 75.00 Ea 1$ 75.00 $ - Total Code Improvements $ 236,704 Mendota Motel Redevelopment TIF District Code Deficiency Cost Report LHB Project No. 170268 Page 2 of 2 Parcel I, Motel Mendota Motel Redevelopment TIF District Photos: Parcel I- Motel - 2180 Highway 13 :��� ° � ��. , � �"� � '_� �, ��_ ��- „ . _ .. , ;, � .-:�_._. _ �� `. 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P1130344.JPG P1130347.JPG Mendota Motel Redevelopment TIF District Page 14 of 15 Photos LHB Project No. 170268 Parcel I, Motel �W ��,�,, .�. 4i� ^ �_� � ... , , , , � � � �� ^� ,� � �� �� >>ZZ,�„ ' `' � ='C '� � - ... w V ���, P1130349.JPG page 189 ::�.. �° � � �,� �.. .;.� . �°r� � � . � ` ti �' (I�; JT� � „ P1130350.JPG Mendota Motel Redevelopment TIF District Page 15 of 15 Photos LHB Project No. 170268 Parcel I, Motel page 190 Appendix G Findings Including But/For Qualifications The reasons and facts supporting the findings for the adoption ofthe Tax Increment Financing Plan (the "TIF Plan") for Tax IncrementFinancing DistrictNo. 2(the "District"), as required pursuantto Minnesota Statutes, Section 469.175, Subdivision 3 are as follows: Finding that Tax Increment Financing District No. 2 is a redevelopment district as defined in M. S., Section 469.174, Subd. 10. The District consists of nine parcels, with plans to redevelop the area for residential rental housing purposes. Parcels consisting of at least 70 percent of the area of the District are occupied by buildings, streets, utilities, paved or gravel parking lots, or other similar structures and more than 50 percent ofthe buildings, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance. These conditions are reasonably distributed throughout the District. (See Appendix F ofthe TIF Plan.) 2. Finding that the proposed development, in the opinion of the City Council, would not reasonably be expectedto occursolely throughprivate investmentwithin the reasonablyforeseeablefuture andthat the increased market value of the site that could reasonably be expected to occur without the use of tax incrementfinancingwould be less than the increase in the marketvalue estimated to resultfi^om the proposed development after subtracting the present value of the projected ta� increments for the maximum duration of the District permitted by the TIF Plan. The proposed development, in the opinion of the City, would not reasonably be expected to occur solely through private investmentwithin the reasonablyforeseeablefuture: This fmding is supported by the fact that the redevelopment proposed in the TIF Plan meets the City's objectives for redevelopment. Due to the high cost of redevelopment on the parcels currently occupied by substandard buildings and poor soils, the limited amount of property available for new development, and the cost of financing the proposed improvements, this project is feasible only through assistance, in part, from tax increment financing. The developer was asked for and provided a letter and a proforma as justification that the developer would not have gone forward without tax increment assistance. (See attachment in Appendix G of the TIF Plan.) The increased market value of the site that could reasonably be expected to occur without the use of tax incrementfinancing would be less than the increase in market value estimated to resultfi^om the proposed development after subti^acting the present value of the projected tax increments for the maximum duration of the Districtpermitted by the TIF Plan: This finding is justified on the grounds that the cost of acquisition, soils corrections, site and public improvements and utilities significantly add to the total redevelopment cost. Historically, site and public improvement costs in this area have made redevelopment infeasible without tax increment assistance. The City reasonably determines that no other redevelopment of similar scope is anticipated on this site without substantially similar assistance being provided to the development. Therefore, the City concludes as follows: a. The City's estimate of the amount by which the market value of the entire District will increase without the use of tax increment financing is $0, or a nominal amount equivalent to inflation over time. Appendix G-1 3 c. page 191 Ifthe proposed development occurs, the total increase in market value will be approximately $18,481,300. The present value of tax increments derived from the District for the ma�mum duration of the District permitted by the TIF Plan is estimated to be $4,314,609. d. Even if some development other than the proposed development, as proposed in the TIF Plan, were to occur, the Council finds that no alternative would occur that would produce a market value increase greater than $14,166,691 (the amount in clause b less the amount in clause c) without tax increment assistance. Finding that the TIF Plan for the Disti^ict conforms to the general plan for the development or redevelopment of the municipality as a whole. The Planning Commission reviewed the TIF Plan and found that the TIF Plan conforms to the general development plan of the City. 4. Finding that the TIFPIan for the Districtwill afford maximum opportunity, consistentwith the sound needs of the City as a whole, for the development or redevelopment of Municipal Development Disti^ict No. 1 by private enterprise. The project to be assisted by the District will result in increased employment in the City and the State of Minnesota, the renovation of substandard properties, increased tax base of the State and will add a high quality development to the City. Through the implementation ofthe TIF Plan, the City will increase the availability of safe and decent life-cycle housing in the City. But-For Analysis Current Market Value New Market Value - Estimate Difference Present Value of Tax Increment Difference Value Likely to Occur Without TIF is Less Than: 838,700 19,320,000 18,481,300 4,314,609 14,166,691 14,166,691 Appendix G-2 page 192 ��"� ��, , � :�;:�,�,�� r 8b. 65� aszlE�o �,no"e � . � www merdeta-h�ian�s �.o�r �T �� � CITY OF � I�./IENa�TA HEIGHTS REQIIEST FOR COIINCIL ACTION DATE: June 20, 2017 TO: Mayor, City Council, and City Administrator FROM: Ryan Ruzek, P.E., Public Works Director SUBJECT: Public Hearing on MnDOT Highway 149 (Dodd Road) Rehabilitation Project and Request for Municipal Consent COMMENT: INTRODUCTION The Minnesota State Department of Transportation (MnDOT) is planning to rehabilitate State Trunk Highway 149 (Dodd Road) in 2018. As part of the design process, MnDOT needs to ask for local government approval of any external access changes to the State facility. BACKGROUND The project is being developed to improve multiple aspects of Highway 149. The pavement structure will be restored and the ride smoothness increased by resurfacing. Pedestrian safety and ADA improvements will be made by updating infrastructure to meet current ADA guidelines. Drainage infrastructure will be improved by repairing or replacing deficient infrastructure. In order to properly request local government approval, there needs to be a Public Hearing before the local governmental body; in this case, the Mendota Heights City Council. The Public Hearing for Municipal Consent is for storm sewer work outside the Highway 149 (Dodd Road) Right-of-Way. DISCUSSION MnDOT will be establishing drainage easements and property acquisitions from the Right-of- Way out into adjoining properties. The attached right-of-way exhibits show the locations of the drainage easements. The attached Resolutions (2017-50) provide the City Council with three options for acting on the requested Municipal Consent. Council may: - Approve Municipal Consent, - Waive Municipal Consent, or - Disapprove Municipal Consent. Approving Municipal Consent is self-explanatory. Waiving Municipal Consent is essentially a "non-objection," or a"non-disapproval" of the proposed layout. Disapproving Municipal Consent says the City disapproves of the layout and MnDOT would have three cour�e�of action as outlined in the attached Statutes 161.162 - 161.167. BUDGET IMPACT None RECOMMENDATION Staff recommends Council approve Municipal Consent by adopting the attached Resolution 2017-50, RESOLUTION APPROVING MUNICIPAL CONSENT FOR THE MNDOT HIGHWAY 149 (DODD ROAD) REHBILITATION PROJECT. ACTION REQUIRED If Council wishes to act on the staff recommendation, pass a motion adopting Resolution 2017- 50, RESOLUTION APPROVING MUNICIPAL CONSENT FOR THE MNDOT HIGHWAY 149 (DODD ROAD) REHBILITATION PROJECT. If Council wishes to take a different action, pass a motion adopting either Resolution 2017-50, RESOLUTION WAIVING MUNICIPAL CONSENT FOR THE MNDOT HIGHWAY 149 (DODD ROAD) REHBILITATION PROJECT, or If Council does not agree to Municipal Consent, it should pass a motion adopting Resolution 2017-50, RESOLUTION DISAPPROVING MUNICIPAL CONSENT FOR THE MNDOT HIGHWAY 149 (DODD ROAD) REHBILITATION PROJECT LAYOUT. Any of these actions require a simple majority vote. page 194 CITY OF MENDOTA HEIGHTS DAKOTA COUNTY, MINNESOTA RESOLUTION 2017-50 RESOLUTION APPROVING MUNICIPAL CONSENT FOR THE MNDOT HIGHWAY 149 (DODD ROAD) REHBILITATION PROJECT WHEREAS, the Commissioner of Transportation has prepared a final layout for State Proj ect 1917-45 on Trunk Highway 149, from I494 to Delaware Ave. within the City of Mendota Heights for pavement, drainage and ADA improvements; and seeks the approval thereof, as described in Minnesota Statutes 161.162 to 161.167; and WHEREAS, said final layout is on file in the Metro District Minnesota Department of Transportation office, Roseville, Minnesota, being marked as Layout No. 1 and lA, S.P. 1917- 45, from R.P. 4+00.149 to 8+00.468. NOW, THEREFORE, BE IT RESOLVED that said final layout for the improvement of said Trunk Highway 149 (Dodd Road) within the corporate limits be and is hereby approved Adopted by the City Council of the City of Mendota Heights this 20rh day of June, 2017. ATTEST Lorri Smith, City Clerk CITY COUNCIL CITY OF MENDOTA HEIGHTS Neil Garlock, Mayor page 195 CITY OF MENDOTA HEIGHTS DAKOTA COUNTY, MINNESOTA RESOLUTION 2017-50 RESOLUTION DISAPPROVING MUNICIPAL CONSENT FOR THE MNDOT HIGHWAY 149 (DODD ROAD) REHBILITATION PROJECT WHEREAS, the Commissioner of Transportation has prepared a final layout for State Proj ect 1917-45 on Trunk Highway 149, from I494 to Delaware Ave. within the City of Mendota Heights for pavement, drainage and ADA improvements; and seeks the approval thereof, as described in Minnesota Statutes 161.162 to 161.167; and WHEREAS, said final layout is on file in the Metro District Minnesota Department of Transportation office, Roseville, Minnesota, being marked as Layout No. 1 and lA, S.P. 1917- 45, from R.P. 4+00.149 to 8+00.468; and WHEREAS, the City of Mendota Heights recognizes the Commissioner of Transportation's right to appeal a disapproval decision to an appeals panel as described in Minnesota Statutes 161.162 to 161.167. NOW, THEREFORE, BE IT RESOLVED that the City Council disapproves municipal consent, described in Minnesota Statutes 161.162 to 161.167, of the final layout for SP 1917-45 for the improvement of said Trunk Highway 149 (Dodd Road) within the corporate limits. Adopted by the City Council of the City of Mendota Heights this 20rh day of June, 2017. ATTEST Lorri Smith, City Clerk CITY COUNCIL CITY OF MENDOTA HEIGHTS Neil Garlock, Mayor page 196 CITY OF MENDOTA HEIGHTS DAKOTA COUNTY, MINNESOTA RESOLUTION 2017-50 RESOLUTION WAIVING MUNICIPAL CONSENT FOR THE MNDOT HIGHWAY 149 (DODD ROAD) REHBILITATION PROJECT WHEREAS, the Commissioner of Transportation has prepared a final layout for State Proj ect 1917-45 on Trunk Highway 149, from I494 to Delaware Ave. within the City of Mendota Heights for pavement, drainage and ADA improvements; and seeks the approval thereof, as described in Minnesota Statutes 161.162 to 161.167; and WHEREAS, said final layout is on file in the Metro District Minnesota Department of Transportation office, Roseville, Minnesota, being marked as Layout No. 1 and lA, S.P. 1917- 45, from R.P. 4+00.149 to 8+00.468; and NOW, THEREFORE, BE IT RESOLVED that the City Council waives the municipal consent approval action, described in Minnesota Statutes 161.162 to 161.167, of the final layout for SP 1917-45 for the improvement of said Trunk Highway 149 (Dodd Road) within the corporate limits. Adopted by the City Council of the City of Mendota Heights this 20rh day of June, 2017. ATTEST Lorri Smith, City Clerk CITY COUNCIL CITY OF MENDOTA HEIGHTS Neil Garlock, Mayor page.197 �..� ..-.....,..�: G:. , . 9a. � ? �� � CITY OF M�f`J�ti 7T.4 HFIC�HT�; Request for City Council Action DATE: June 20, 2017 TO: Mayor, City Council, and City Administrator FROM: Lorri Smith, City Clerk SUBJECT: Ordinance 511 Amendment to Title 3, Chapter l, Alcoholic Beverages COMMENT: Introduction The City Council is asked to adopt an ordinance which would amend the Alcoholic Beverages section of the City Code. Back�round The current Alcoholic Beverage Code language is very outdated, inconsistent, and needs to be brought up to date with current standards. Recommendation The Council is asked to consider the proposed Ordinance amending City Code Title 3, Chapter l, concerning alcoholic beverages. The current license holders have been notified that the City Council would be considering this Code amendment at tonight's meeting, and they have been made aware of the major changes being proposed. The major changes to the current City Code language being proposed include the following: • Bringing the Alcoholic Beverages Code more in line with state statutes regulating liquor • Adding language to allow Off Sale intoxicating liquor sales on Sundays • Deleting the requirement that a certain percentage of sales must come from food/nonalcoholic beverages, thereby eliminating the CPA verification of total sales with the renewal application • Deleting the limits on the total number of licenses allowed in the City for On Sale licenses • Deleting the requirement of an official public hearing for new licenses and for renewals • Deleting the requirement of a surety bond • Amending the amounts and conditions of liquor liability insurance requirements so that they are consistent with state statutes • Deleting the requirement of verifying political contributions made to candidates for an elected city office • Adding a requirement for server training of all employees serving or selling alcohol page 198 Action Repuired If the Council concurs, it should, by motion, approve Ordinance 511, Amending Title 3, Chapter l, of the City Code regarding Alcoholic Beverages and approve the summary publication. This ordinance requires a simple majorit�y vote. The summary publication requires a 4/Sr vote of the Council. page 199 CITY OF MENDOTA HEIGHTS DAKOTA COUNTY, MINNESOTA ORDINANCE NO. 5ll AMENDING TITLE 3, CHAPTER 1, OF THE MENDOTA HEIGHTS CITY CODE REGARDING ALCOHOLIC BEVERAGES The City Council of the City of Mendota Heights, Minnesota, does hereby ordain: Section 1. City Code Title 3, Chapter 1— ALCOHOLIC BEVERAGES is hereby repealed and replaced. Section 2. 3-1-1: PURPOSE Pursuant to the authority granted it by the Minnesota liquor act, Minnesota statutes Chapter 340A, and the Twenty First Amendment to the United States constitution, the city council prescribes the licensing procedures and regulations governing the sale and/or consumption of alcoholic beverages. (Ord. 366, 4-16-2002, eff. 7-15-2002) 3-1-2: STATE LAW ADOPTED. Minn. Stat. ch. 340A is adopted by reference as if set out at length in this chapter. If the other provisions in this chapter are more stringent than the provisions of Minn. Stat. ch. 340A, the provisions of this chapter shall be controlling. State Law reference — Adoption by reference, M.S. § 471.62 3-1-3: DEFINITIONS All words, terms and phrases used in this chapter, shall have the meanings ascribed to them in Minn. Stat. § 340A.101 et seq., except where context clearly indicates a different meaning. State Law reference — Definitions, M.S. § 340A.101 3-1-4: RESPONSIBILITY OF LICENSEE; EMPLOYEES A. Every licensee under this chapter is responsible for the conduct in the licensed establishment and any sale of alcoholic beverage by an employee authorized to sell alcoholic beverages in the establishment is the act of the licensee. B. No person under 18 years of age may be employed in a place where intoxicating liquor is sold for consumption on the premises, except persons under 17 years of age may be employed as musicians or in bussing or washing dishes in a restaurant or hotel that is licensed to sell intoxicating liquor and may be employed as waiters and waitresses at a restaurant, hotel, or motel where only wine is sold, provided that the person under 18 years of age may not sell or serve any wine. page 200 C. Alcohol Awareness Training. Within six (6) months of the initial hire date, and biennially thereafter, every person selling or serving liquor in an establishment that has a license shall receive training regarding the selling or serving of liquor to customers. Upon request, proof of training shall be provided by the licensee. The failure of a licensee to meet this condition shall result in suspension of the license until the condition is met. 3-1-5: LICENSE REQUIRED A. No person may directly or indirectly, on any pretense or by any device, sell, barter, keep for sale, or otherwise dispose of alcoholic beverages as part of a commercial transaction without having obtained a license issued by the city council. (Ord. 366, 4-16-2002, eff. 7-15-2002) B. No alcoholic beverages shall be sold or consumed or possessed in an open container on a street or public highway, in an automobile, or in a parking lot of an establishment currently holding a liquor license. The licensee shall post and maintain a conspicuous place within the licensed premises at the exits clearly visible to customers: one sign 14 �/z inches wide by eight inches high, which states no alcoholic beverages are allowed beyond this point. C. Any person licensed to sell intoxicating liquor at on-sale may sell 32 percent malt beverages at on-sale without further license. D. The holder of an on-sale wine license who is also licensed to sell 32 percent malt liquors at on-sale and who carries liquor liability insurance in the limits set forth in M.S. § 340A.409, shall have the right to sell intoxicating malt liquors at on-sale without an additional license. State Law Reference — Requirement for state license, M.S. § 340A.401; authority for city to issue local license for certain sales of malt liquor, M.S. § 340A.403; authority for city to issue license for certain sales of intoxicating liquor and wine, M.S. § 340A.404. 3-1-6: TYPES OF LICENSES; ELIGIBILITY; EXEMPTIONS A. Intoxicating Liquor Licenses: l. Retail, on-sale. a. An on-sale intoxicating liquor license may be issued to hotels; restaurants; bowling centers; and clubs or congressionally chartered veterans' organizations, provided that the organization has been in existence for at least three (3) years and liquor sales will only be to members and bona fide guests. b. An on-sale intoxicating liquor license, an on-sale wine license or an on- sale malt liquor license may be issued to a theatre or golf course within the page 201 city, notwithstanding any law. The license issued under this paragraph authorizes sales on all days of the week. 2. Retail, off-sale. An off-sale intoxicating liquor license may be issued to an exclusive liquor store. 3. Retail, on-sale, wine. a. On-sale wine licenses shall be issued only to restaurants having facilities for seating at least twenty five (25) guests at one time. A wine license permits the retail sale of wine up to 24 percent alcohol by volume for consumption. A wine license authorizes the sale of wine on all days of the week. b. A holder of an on-sale wine license issued pursuant to this chapter who is also licensed to sell 32 percent malt liquors at on-sale shall be permitted to sell intoxicating malt liquors at on-sale without an additional license. 4. Culinary class limited on-sale license. A limited on-sale intoxicating liquor license may be issued to a business establishment: (a) not otherwise eligible for an on-sale intoxicating liquor license; and (b) that, as part of its business, conducts culinary or cooking classes for which payment is made by each participant or advance reservation required. The license authorizes the licensee to furnish to each participant in each class, at no additional cost to the participant, up to a maximum of six ounces of wine or twelve ounces of intoxicating malt liquor, during and as part of the class, for consumption on the licensed premises only. Retail, on-sale, Sunday sales. On-sale licenses permit the sale of alcoholic beverages for consumption on the licensed premises only. Special licenses for Sunday liquor sales shall be issued only to establishments to which on-sale licenses have been issued or hereafter may be issued for the sale of intoxicating liquors in conjunction with the serving of food. 6. Temporary, on-sale. On-sale temporary licenses shall be granted only to (1) clubs or charitable, religious, or other nonprofit organizations in existence for at least three (3) years for the sale of intoxicating liquor on the premises only on the days specified in the license. No organization may be granted more than two (2) temporary licenses in any calendar year. No license shall be issued for more than four (4) consecutive days. B. 32 Percent Malt Liquor Licenses Retail, on-sale. On sale licenses shall be granted only to bona fide clubs, restaurants and hotels where food is prepared and served for consumption only on the premises. On sale licenses shall permit the sale of 3.2 percent malt liquor for consumption on the premises only. page 202 2. Retail, off-sale. Off sale licenses shall permit the sale of 3.2 percent malt liquor at retail in the original package for consumption off the licensed premises only. 3. Temporary licenses may be granted for special events held by a religious, charitable, or nonprofit organization that has been in existence for at least three (3) years for the sale of 3.2 percent malt liquor on the premises only on the days specified in the license. No organization shall be granted more than two (2) temporary licenses in any calendar year. No license shall be issued for more than four (4) consecutive days. C. The city council, in its discretion, shall have the right to refuse to issue or renew a license for the sale of alcoholic beverages on any premises on which taxes, assessments or other financial claims of the city are delinquent and unpaid. Delinquent and unpaid taxes, assessments, or other financial claims of the city on the premises for which the license has been issued shall be grounds for the revocation of an alcoholic beverage license. (Ord. 366, 4-16-2002, eff. 7-15-2002) D. Eligibility. No retail license may be issued to: 1. A person under 21 years of age; 2. A person who has had an intoxicating liquor or 3.2 percent malt liquor license revoked within five (5) years of the license application, or to any person who at the time of the violation owns any interest, whether as a holder of more than five percent of the capital stock of a corporation licensee, as a partner or otherwise, in the premises or in the business conducted thereon, or to a corporation, partnership, association, enterprise, business, or firm in which any such person is in any manner interested; 3. A person not of good moral character and repute; or 4. A person who has been convicted, within five (5) years prior to the application for such license, of a felony or of any willful violation of a federal, state, or local law governing the manufacture, sale, distribution, or possession for sale or distribution of 32 percent malt liquor, intoxicating liquor, or wine. The city may deny issuance of a license if it appears that the applicant has had a conviction of any crime that is directly related to the type of license being sought, as defined by Minnesota statutes section 364.03, subdivision 2, and if the person has not shown competent evidence of sufficient rehabilitation and present fitness to perform the duties and responsibilities of the licensed occupation, as defined by Minnesota states section 364.03, subdivision 3. 5. A person who has a direct or indirect interest in a manufacturer, brewer, or wholesaler. 6. A person who has an interest, either directly or indirectly, in two (2) establishments in the city to which on-sale licenses have been issued under this page 203 chapter. No person shall own an "interest", as defined in Minn. Stat. § 340A.101 in more than two (2) establishments or businesses for which on-sale licenses have been granted under this chapter. 7. A person who is the spouse of a person ineligible for a license pursuant to the provisions of subsections 1 through 6 of this section. A person who is not the real party in interest or a beneficial owner of the business operated, or to be operated, under the license. This section applies to a general partner or general manager if the applicant is a partnership, and corporate officer or general manager if the application is a corporation. E. Exemptions. Holders of on sale intoxicating liquor licenses are exempt from the requirement that an on sale 32 percent malt liquor license be obtained, and off sale intoxicating liquor licensees are exempted from the requirement that an off sale 3.2 percent malt liquor license be obtained before selling 32 percent malt liquor. State Law reference — Similar provisions, M.S. § 340A.402; authority for city regulation of wine sale, M.S. § 340A.404, subd. 5. 3-1-7: NUMBER OF LICENSES Not more than the following number of licenses shall be in existence at any one time. Off sale intoxicating licenses 6 (Ord. 366, 4-16-2002, eff. 7-15-2002) 3-1-8: APPLICATIONS FOR LICENSES A. Applications for a liquor license shall be required upon initial application, upon license renewal and upon any change of ownership or business control of a licensed premises. It shall be unlawful to make any false statements in an application. Every application for a license to sell alcoholic beverages shall be verified and filed with the city clerk. B. A liquor license may be issued only for a space that is compact and contiguous. The building and any permanently constructed and physically attached deck or patio is recognized as a part of the compact and contiguous licensed premises. The area must be included as part of the licensed premises on the applicant's liquor license application in the section that describes the licensed premises and must be covered by liquor liability insurance. The area must be clearly designated and access to the area controlled. Storage of alcoholic beverages is not allowed on the attached deck or patio. C. Every application for the issuance or renewal of a license for the sale of alcoholic beverages must include a copy of each notice received by the applicant under M.S. § 340A.802 during the preceding year. page 204 D. Applications for the renewal of an existing license shall be made at least 60 days prior to the date of the expiration of the license and shall be made in such abbreviated form as the city clerk may approve. Proposed enlargement, alteration or extension of premises previously licensed shall be reported to the city clerk at or before the time application is made. If, in the judgment of the city clerk, good and sufficient cause is shown by the applicant for failure to file for a renewal within the time provided, the city council may, if the other provisions of this article are complied with, grant the application. Changes in the corporate articles or partnership agreement, as the case may be, shall be submitted to the city clerk within 30 days after such changes are made. In the case of a corporation, the licensee shall notify the city clerk when a person not listed in the application acquires an interest in the corporation and shall give all information about the person as is required in an initial application. E. Every application for the renewal of a license for the sale of alcoholic beverages must include proof that all employees authorized to serve or sell alcoholic beverages on the licensed premises have completed an alcohol awareness program approved by the Chief of Police. F. No licensee under this chapter shall enter into an agreement allowing another person to manage the licensed premises unless said management agreement is in writing and is conditional upon approval by the city clerk The licensee shall provide the city clerk with a copy of the proposed management agreement and such fee as established by ordinance at least ten days before the agreement is to take effect. 31-9: FINANCIAL RESPONSIBILITY; LIABILITY INSURANCE A. No retail liquor license may be issued, maintained, or renewed unless the applicant demonstrates proof of financial responsibility with regard to liability imposed by M.S. § 340A.801. The minimum requirement for proof of financial responsibility may be given by: A certificate that there is in effect for the license period an insurance policy issued by an insurer required to be licensed under M.S. § 60A.07, subd. 4, or by an insurer recognized as an eligible surplus lines carrier pursuant to M.S. § 60A206 or pool providing at least $50,000 of coverage because of bodily injury to any one person in any one occurrence, $100,000 because of bodily injury to two or more persons in any one occurrence, $10,000 because of injury to or destruction of property of others in any one occurrence, $50,000 for loss of ineans of support of any one person in any one occurrence, $100,000 for loss of ineans of support of two or more persons in any one occurrence, $50,000 for other pecuniary loss of any one person in any one occurrence, and $100,000 for other pecuniary loss of two or more persons in any one occurrence; 2. A bond of a surety company with minimum coverage as provided in paragraph (1); or page 205 3. A certificate of the state treasurer that the licensee has deposited with the state treasurer $100,000 in cash or securities which may be legally purchased by savings banks or for trust funds having a market value of $100,000. This subsection does not prohibit an insurer from providing the coverage required by this subsection in combination with other insurance coverage. An annual aggregate policy limit for dram shop insurance of not less than $300,000.00 may be included in the policy provisions. A liability insurance policy required by this section must provide that it may not be canceled for: (1) any cause, except for nonpayment of premium, by either the insured or the insurer unless the canceling party has first given 30 days' notice in writing to the city clerk of intent to cancel the policy; and (2) nonpayment of premium unless the canceling party has first given ten days' notice in writing to the issuing authority of intent to cancel the policy. B. Paragraph A does not apply to licensees who by affidavit establish that: L They are on-sale 3.2 percent malt liquor licensees with sales of less than $25,000 of 32 percent malt liquor for the preceding year; or 2. They are off-sale 32 percent malt liquor licensees with sales of less than $50,000 of 32 percent malt liquor for the preceding year; or 3. They are on-sale wine licensees with sales of less than $25,000 of wine for the preceding year. State Law reference — Similar provisions, M.S. § 340A.409. 3-1-10: FEES; TERM A. Each application for a license required by this division shall be accompanied by a payment in full of the required fee for that license. All fees shall be paid into the general fund. Upon rejection of any application for a license or upon withdrawal of application before approval of the issuance by the city council, the license fee shall be refunded to the applicant except where rejection is for a willful misstatement in the license application. B. All licenses shall expire on the last day of June in each year. Each license shall be issued for a period of one year, except that if a portion of the license year has elapsed when the application is made, a license may be issued for the remainder of the year for a pro rata fee. In computing such fee, any unexpired fraction of a month shall be counted as one month. C. The annual fee for a license shall be as established by resolution. page 206 D. Upon written request, a pro rata share of an annual license fee for a retail license, may be refunded to the licensee or to the licensee's estate if: L The business ceases to operate because of destruction or damage; 2. The licensee dies; 3. The business ceases to be lawful for a reason other than a license revocation; or 4. The licensee ceases to carry on the licensed business under the license. E. At the time of the original application for a license, the applicant shall pay in full an investigation fee in the amount established by resolution. No investigation fee shall be refunded. At any time that an additional investigation is required because of a change in the ownership or control or because of an enlargement, alteration, or extension of premises previously licensed, the licensee shall pay an additional investigation fee in the amount established by resolution. F. Off-sale intoxicating liquor licensees may request a reduction in their annual license fee by the amount specified in M.S. § 340A.408 if at the time of initial application or renewal they: 1. Agree to have a private vendor approved by the city train all employees within sixty (60) days of hire and annually thereafter in laws pertaining to the sale of alcohol, the rules for identification checks, and the responsibilities of establishments serving intoxicating liquors; 2. Post a policy requiring identification checks for all persons appearing to be 30 years old or less; 3. Establish a written cash award and incentive program to award employees who catch underage drinkers and a written penalty program to punish employees in the event of a failed compliance check; 4. Failure to abide by the provisions of this paragraph may result in suspension of the license until the conditions of the fee reduction are met and may result in suspension and/or revocation of the license pursuant to Section 3-1-22 of this chapter. State Law reference—License fees, M.S. § 340A.408; term, M.S. § 340A.411, subd. 2. 3-1-11: GRANTING OF LICENSES A. Each license to sell alcoholic beverages shall be issued to the applicant only and shall not be transferable to another holder. Each license shall be issued only for the premises described in the application. No license may be transferred to another place without the approval of the city council. page 207 B. The city council shall investigate all facts set out in the application for a liquor license. The council shall grant or refuse the application in its discretion. No off-sale, wine, or club license shall become effective until the commissioner has approved it. State Law reference—License limited to space specified, M.S. § 340A.410, subd. 7. 3-1-14: PLACES INELIGIBLE FOR LICENSE A. Except for temporary on-sale licenses, no license shall be granted for a location within one thousand feet (1,000') of a school or seven hundred twenty five feet (725') of any church. In the case of a school, the distance is to be measured in a straight line from the lot on which the establishment is to be located to the nearest point of the lot on which the school is located. In the case of a church, the distance is to be measured from the lot on which the establishment is to be located to the nearest point of the church building. The erection of a school or church within the prohibited area after an original application has been granted shall not, in and of itself, render such premises ineligible for renewal of a license. (Ord. 398, 2-15-2005) B. On-Sale Licenses. No on-sale tier one intoxicating liquor license shall be granted for a restaurant or for a hotel that does not have a dining area, open to the general public, with a total minimum floor area of two thousand (2,000) square feet and dining facilities for seating a minimum of two hundred (200) guests at one time. (Ord. 417, 2-19- 2008) 2. No on-sale tier two intoxicating liquor license shall be granted for a restaurant that does not have a dining area, open to the general public, with a total minimum floor area of one thousand (1,000) square feet and dining facilities for seating a minimum of fifty (50) guests at one time. (Ord. 447, 4-2-2013) 3. No on-sale wine or on-sale 32 percent malt beverage license shall be granted for a restaurant that does not have a dining area, open to the public, with minimum seating for at least 25 guests at one time. 4. No on-sale license shall be granted for any place for which an off-sale intoxicating liquor license has been granted under this chapter. 5. An on-sale 3.2 percent malt liquor license under this chapter may only be issued to restaurants, hotels, clubs, golf courses and establishments used exclusively for the sale of 32 percent malt liquor. (Ord. 417, 2-19-2008) C. Off Sales Licenses. l. No off sale license shall be granted for any establishment that is licensed as an on sale establishment. page 208 2. No off sale intoxicating liquor license shall be granted: a. To any premises located in any zoning district other than a B-4 shopping center district or an MU-PUD district. b. Unless the premises proposed to be licensed contains the following requirements: (1) A minimum of two thousand five hundred (2,500) square feet on the ground floor level for sales and display area; and (2) A minimum of five hundred (500) square feet of ground floor area, screened from the display area, or basement level area of the licensed premises for storage purposes. (Ord. 366, 4-16-2002, eff. 7-15-2002) 3-1-15: CONDITIONS OF LICENSE Every license shall be granted subject to the conditions of the following subsections and all other sections of this chapter, and of any other applicable ordinance of the city or state law: A. Posting. A retail license to sell alcoholic beverages must be posted in a conspicuous place in the premises for which it is used. B. Conduct of Business: Every licensee shall be responsible for the conduct of the business and the conditions of sobriety and order in the place of business and on the premises. C. Inspection: All licensed premises shall be open to inspection by any police officer or other designated officer or employee of the city at any time there are persons within the licensed premises. (Ord. 366, 4-16-2002, ef£ 7-15-2002) D. Restrictions on Sales. Resale. No licensee under this chapter may sell intoxicating liquor, wine, or 3.2 percent malt liquor to any person for the purpose of resale, or to any person whom the licensee has reason to believe intends to resell the intoxicating liquor, wine, or 3.2 percent malt liquor without written approval of the commissioner of public safety. 2. Hotel Rooms. No sale of intoxicating liquor shall be made in guestrooms of hotels unless the hotel has an on sale license under this chapter. No sales of intoxicating liquor shall be made to or in guestrooms of hotels, unless the rules of such hotel provide for the service of ineals in guestrooms; unless the sale of such intoxicating liquor is made in the manner in which on sale is required to be made; unless such sale accompanies and is incident to the regular service of ineals to guests therein; and unless the rules of such hotel and the description, location and number of such guestrooms are fully set out in the application for a license. page 209 3. Club Sales. No club shall sell an alcoholic beverage except to club members and to guests in the company of inembers. E. Tampering With Contents. L No licensee shall sell, offer for sale, or keep for sale intoxicating liquors in any original package which has been refilled or partly refilled. 2. No licensee shall directly or indirectly through an agent, employee, or any other person dilute or in any manner tamper with the contents of any original package or bottle so as to change its composition or alcoholic content while the contents are in the original package or bottle. Possession on the premises of alcoholic beverages in the original package or bottle differing in composition or alcoholic content from when it was received from the manufacturer or wholesaler from whom it was purchased shall be prima facie evidence that the contents of the original package or bottle have been diluted, changed or tampered with in violation of this section. (Ord. 366, 4-16-2002, eff. 7-15-2002) F. Consumption On Approved Licensed Premises. Consumption of on-sale alcoholic beverages is allowed only in the approved licensed premises. A restaurant licensed to sell intoxicating liquor or wine at on-sale under this section may permit a person purchasing a full bottle of wine in conjunction with the purchase of a meal to remove the bottle on leaving the licensed premises provided that the bottle has been opened and the contents partially consumed. A removal of a bottle under the conditions described in this subsection is not an off-sale of intoxicating liquor and may be permitted without additional license. (Ord. 412, 5-1-2007) G. Display Of Alcoholic Beverages During Prohibited Hours. No on sale liquor licensee shall display intoxicating liquor, wine or 32 percent malt liquor to the public during hours when the sale of intoxicating liquor, wine, or 3.2 percent malt liquor is prohibited by this chapter. H. Off Sale Licenses; Additional Restrictions. Deliveries; Receipt Required. No off sale licensee, his agent or employee, shall deliver any intoxicating liquor, wine or 3.2 percent malt liquor to or at any place or premises without obtaining a receipt therefor, signed by the person receiving such liquor and bearing the time, date and place of delivery. Such receipts shall be kept in the files of the licensee for a period of one year, and such files and receipts shall be kept available for inspection by the city clerk or designated city employee at all hours during which the licensed premises is open for business. 2. Business Name. The city shall not allow the same business name to be used by more than one of its off sale intoxicating liquor licenses. page 210 3. Samples. No off sale licensee under this chapter shall sell or furnish intoxicating liquor, wine, or 3.2 percent malt liquor on sale, except an off sale licensee may provide samples of malt liquor, wine, liqueurs, cordials, and distilled spirits which the licensee currently has in stock and is offering for sale to the general public, provided the wine, liqueur, cordial, and distilled spirits samples are dispensed at no charge and consumed on the licensed premises during the permitted hours of off sale in a quantity less than one hundred milliliters (100 ml) of malt liquor per variety per customers, fifty milliliters (50 ml) of wine per variety per customer, and twenty five milliliters (25 mil) of liqueur or cordial, and fifteen milliliters (15 ml) of distilled spirits per variety per customer. 4. Distilled Spirits. An off sale licensee of intoxicating liquor may sell distilled spirits in bottles of fifty milliliters (50 ml). Coin Operated Amusement Devices. Coin operated amusement devices may not be made available in establishments holding an off-sale license under this chapter. (Ord. 366, 4-16-2002, eff. 7-15-2002) 3-1-16: TRANSFER OF LICENSE A. The license granted under this chapter is for the person and the premises named on the approved license application. No transfer of a license shall be permitted from place to place or from person to person without complying with the requirements of an original application, except in the case in which an existing non-corporate licensee is incorporating and the incorporation does not affect the ownership, control, and interest of the existing licensed establishment. B. A license under this chapter shall immediately notify the city clerk of the following: l. A change in the corporate or organization officers listed in the license application, excluding officers or clubs holding club licenses. 2. Any changes in the partnership agreement or lease submitted with the license application. 3. A change of the managing partner, manager, proprietor, or other person who is in charge of the licensed premises. 4. Any change in the ownership of an establishment licensed under this chapter, including any acquisition of an interest in the partnership, corporation, or other organization by any person not identified in the license application. C. When an establishment licensed under this chapter is sold or transferred, the licensee shall immediately notify the city clerk of the sale or transfer. If the establishment that is sold or transferred is to continue selling or furnishing intoxicating liquor, the new owner page 211 must immediately apply for an appropriate license under this chapter. In addition, a management agreement, which covers the period between the sale or transfer and the issuance of the new owner's license, shall be executed between the existing licensee and the new owner within twenty (20) days following the sale or transfer. The management agreement shall vest control of all intoxicating liquor sales in the existing licensee or a manager responsible to the existing licensee. The agreement shall be approved by the city council. D. A management agreement shall be required of any licensed establishment whose business is being managed or operated by a person other than the licensee or an employee of the licensee. No person other than the licensee or an employee of the licensee shall be permitted to manage or operate an establishment licensed under this chapter until the city council has reviewed and approved the management agreement and any amendments thereto. E. A federally chartered corporation charged with insuring and/or holding assets of banking or savings and loan institutions which obtains ownership of a hotel or restaurant licensed to sell intoxicating liquor, files an application for an on-sale liquor license for said establishment either in its name or the name of a representative thereof, and demonstrates to the city clerk that it is unable to execute a management agreement with the existing licensee, may sell intoxicating liquor at the hotel or restaurant pending a decision by the city council on whether to approve the application for the on-sale liquor license. (Ord. 366, 4-16-2002, ef£ 7-15-2002) 3-1-17: HOURS AND DAYS OF OPERATION A. Hours and Days of operation shall be as follows: On-Sale Club, On-Sale Wine, On-Sale 3.2 Percent Off-Sale Liquor Malt Liquor And On-Sale Intoxicating Liquor Establishments Establishments Monday through Sales allowed between 10:00 a.m. and 12:45 a.m. Sales allowed between Friday 8:00 a.m. and 9:00 p.m. Saturday Sales allowed between 10:00 a.m. and 12:45 a.m. Sales allowed between 8:00 a.m. and 10:00 p.m. Sunday Sales allowed between 10:00 a.m. and 12:45 a.m. Sales allowed between 11:00 a.m. and 6:00 p.m. July 3, if not a Sales allowed between 10:00 a.m. and 12:45 a.m. Sales allowed between Sunday 8:00 a.m. and 10:00 p.m. The day Sales allowed between 10:00 a.m. and 12:45 a.m. Sales allowed between preceding 8:00 a.m. and 10:00 Thanksgiving p.m. Day page 212 Thanksgiving Sales allowed between 10:00 a.m. and 12:45 a.m. No Sales Day Christmas Eve, Sales allowed between 10:00 a.m. and 12:45 a.m. Sales allowed between December 24, if 8:00 a.m. and 8:00 p.m. not a Sunday Christmas Day, Sales allowed between 10:00 a.m. and 12:45 a.m. No Sales December 25 December 31, if Sales allowed between 10:00 a.m. and 12:45 a.m. Sales allowed between not a Sunday 8:00 a.m. and 10:00 p.m. B. On-Sale Licensees; Hours of Consumption And Display. No on-sale licensee shall permit the consumption or display of any beverages containing more than one-half of one percent (0.5%) of alcohol by volume on his or her premises during the hours when the sale of such beverage is prohibited by this chapter or state law; provided, however, that the licensee shall be allowed a thirty (30) minute period following the closing hour to clear the premises of customers who were present at the closing hour, and such customers may consume any such beverage purchased by them before the closing hour. All customers and nonworking employees shall be cleared of the premises by thirty (30) minutes past the closing hour. (Ord. 366, 4-16-2002, ef£ 7-15-2002; amd. 2003 Code) 3-1-18: GAMBLING PROHIBITED A. Except as otherwise provided in M.S. § 340A.410, no retail establishment licensed to sell alcoholic beverages may keep, possess, or operate, or permit the keeping, possession, or operation on the license premises of dice or any gambling device as defined in M.S. § 349.30, or permit gambling therein. B. Gambling equipment may be kept or operated and raffles conducted on licensed premises and adjoining rooms when the use of the gambling equipment is authorized under M.S. Ch. 349. State Law Reference — Similar provisions, M.S. § 340A.410, subd. 5 3-1-19: MINORS A. Consumption. It is unlawful for any: 1. Retail establishment holding a liquor license to permit any person under 21 years of age to consume alcoholic beverages on the license premises; or 2. Person under 21 years of age to consume any alcoholic beverages unless in the household of the person's parent or guardian and with the consent of the parent or guardian. B. Purchasing. It is unlawful for any person: page 213 To sell, barter, furnish, or give alcoholic beverages to a person under 21 years of age, except that a parent or guardian of a person under 21 years of age may give or furnish alcoholic beverages to that person solely for the consumption in the household of the parent or guardian. 2. Under 21 years of age to purchase or attempt to purchase any alcoholic beverage; or 3. To induce a person under 21 years of age to purchase or procure any alcoholic beverage; 4. For a person under 21 years of age to request a person over 21 years of age to sell, barter, furnish or give alcoholic beverages to a person under 21 years of age. C. Possession. It is unlawful for a person under 21 years of age to possess any alcoholic beverage with the intent to consume it at a place other than the household of the person's parent or guardian. Possession at a place other than the household of the parent or guardian is prima facie evidence of intent to consume it at a place other than the household of the parent or guardian. D. Entering License Premises. It is unlawful for a person under 21 years of age to enter an establishment licensed for the sale of alcoholic beverages or any municipal liquor store for the purpose of purchasing or having served or delivered any alcoholic beverage. E. Misrepresentation of Age. It is unlawful for a person under 21 years of age to misrepresent his or her age for the purpose of purchasing alcoholic beverages. F. Proof of Age. Proof of age for purchasing or consuming alcoholic beverages may be established only by a valid driver's license or state identification card, a valid military identification card issued by the United States Department of Defense, or in the case of a foreign national by a valid passport. 3-1-20: SALES TO, CONSUMPTION BY CERTAIN PERSONS A. Intoxicated Persons. No person may sell, give, furnish, or in any way procure for another alcoholic beverages for the use of an obviously intoxicated person. B. Consumption on Unlicensed Premises. No person shall consume or mix or prepare intoxicating liquor for consumption in any public place not licensed or authorized in accordance with the ordinances of the City of Mendota Heights and the state of Minnesota. 3-1-21: ALTERATION OF PREMISES Proposed enlargement, alteration or extension of premises previously licensed shall be reported to the city clerk at or before the time application is made for a building permit for any such page 214 change, and the licensee shall also give such information as is required by Section 3-1-8 of this chapter. (Ord. 366, 4-16-2002, eff. 7-15-2002) 3-1-22: SANCTIONS FOR LICENSE VIOLATIONS A. The city council may either suspend for up to 60 days or revoke a license to sell alcoholic beverages or impose a civil fine not to exceed two thousand dollars ($2,000.00) for each violation on a finding that the license or permit holder has failed to comply with an applicable statute, regulation, or ordinance relating to alcoholic beverages. No suspension or revocation takes effect until the license holder has been afforded the opportunity for a hearing under Sections 14.57 to 14.70 of the Administrative Procedures Act. B. If the commissioner of public safety has imposed a civil penalty or a suspension against the same licensee for the same act, imposition of an additional penalty or suspension by the city is not precluded; provided, that the total penalty or suspension does not exceed the maximum specified by state law. (Ord. 366, 4-16-2002, ef£ 7-15-2002) 3-1-23: VIOLATION; PENALTIES A. Any person who shall commit or do any other act that violates the provisions of this chapter shall be guilty of a misdemeanor and, upon conviction thereof, shall be punished by a fine not to exceed seven hundred dollars ($700.00) or imprisonment for a period not to exceed ninety (90) days, or both. (Ord. 366, 4-16-2002, ef£ 7-15-2002) Section 3. This ordinance shall take effect on July l, 2017, and after its publication according to law. Adopted and ordained into an Ordinance this 20rh day of June, 2017. ATTEST Lorri Smith, City Clerk CITY COUNCIL CITY OF MENDOTA HEIGHTS Neil Garlock, Mayor page 215 SUMMARY PUBLICATION CITY OF MENDOTA HEIGHTS ORDINANCE NO. 511 ALCOHOLIC BEVERAGES The City Council of the City of Mendota Heights, MN ordains: The City of Mendota Heights Code of Ordinances, Title 3, Chapter l, Alcoholic Beverages is hereby deleted in its entirety and restated to update the ordinance with new up to date language. Major changes to the previous Code language includes the following: • Bringing the Alcoholic Beverages Code more in line with state statutes regulating liquor • Adding language to allow Off Sale intoxicating liquor sales on Sundays • Deleting the requirement that a certain percentage of sales must come from food/nonalcoholic beverages, thereby eliminating the CPA verification of total sales with the renewal application • Deleting the limits on the total number of licenses allowed in the City for On Sale licenses • Deleting the requirement of an official public hearing for new licenses and for renewals • Deleting the requirement of a surety bond • Amending the amounts and conditions of liquor liability insurance requirements so that they are consistent with state statutes • Deleting the requirement of verifying political contributions made to candidates for an elected city office • Adding a requirement for server training of all employees serving or selling alcohol The complete text of Ordinance No. 511 may be obtained at the city hall or from the City's website at www.mendota-heights.com . Adopted this 20rh day of June, 2017. CITY COUNCIL OF MENDOTA HEIGHTS /s/ Neil Garlock, Mayor Attest: /s/ Lorri Smith, City Clerk � ' �_ � CITY OF I`/IEN��TA HEI�HTS DATE: June 20, 2017 page 216 9b. C�i I � ���Nn:>ie �,�145�6��,;-ax.. wv�w�merdcta heiqh;scom� TO: Mayor and City Council FROM: Mark McNeill, City Administrator SUBJECT: Planning Commissioner Interviews COMMENT: INTRODUCTION The Council is asked to determine a date and time to interview Planning Commissioner candidates. BACKGROUND The resignation of Howard Roston created a vacancy on the Planning Commission. An advertisement of the vacancy was made, and seven local residents submitted applications as a result. The candidates are: • John Mazzitello • Nancy Breymeier • Lawrence Sommer • Dan Johnson • Michael Toth • Joseph Hertenstein • Harry McPeak ACTION REQUIRED The Council should determine a time and date to perform the interviews. Mark McNeill City Administrator