2019-08-20 Council PacketCITY OF MENDOTA HEIGHTS
CITY COUNCIL AGENDA
August 20, 2019 – 7:00 pm
Mendota Heights City Hall
1. Call to Order
2. Roll Call
3. Pledge of Allegiance
4. Adopt Agenda
5. Presentations
a. Update on Fire Station Expansion/Remodel by Paul Oberhaus, CPMI
6. Consent Agenda
a. Approval of August 7, 2019 City Council Minutes
b. Approval of August 13, 2019 Council Work Session Minutes
c. Acknowledge the June 11, 2019 Parks and Recreation Commission Meeting Minutes
d. Approve Resolution 2019- 58 Declaring Certain Fire Equipment To Be Surplus, and
Authorizing Donation to the MN Fire Engine Club
e. Acknowledge June 2019 Par 3 Financial Report
f. Acknowledge Building Activity Report
g. Approval of June 2019 Treasurer’s Report
h. Approval of Claims List
7. Citizen Comment Period
*see guidelines below
8. Public Hearings - none
9. New and Unfinished Business
a. Approve Purchase Agreement between MH Development, LLC (Grand Real Estate
Advisors) and City of Mendota Heights for City Owned Village Lots
b. Resolution 2019-60 Approve Plans and Authorize an Advertisement for Bids on the 2019
Storm Sewer Improvement Project
10. Community Announcements
11. Council Comments
12. Adjourn
Guidelines for Citizen Comment Period: “The Citizen Comments section of the agenda
provides an opportunity for the public to address the Council on items which are not on the
agenda. All are welcome to speak.
Comments should be directed to the Mayor. Comments will be limited to 5 minutes per person
and topic; presentations which are longer than five minutes will need to be scheduled with the
City Clerk to appear on a future City Council agenda. Comments should not be repetitious.
Citizen comments may not be used to air personal attacks, to air personality grievances, to
make political endorsements, or for political campaign purposes. Council members will not
enter into a dialogue with citizens, nor will any decisions be made at that presentation.
Questions from the Council will be for clarification only. Citizen comments will not be used as
a time for problem solving or reacting to the comments made, but rather for hearing the
citizen for information only. If appropriate, the Mayor may assign staff for follow up to the
issues raised.”
To: Mayor and City Council
From: Mark McNeill, City Administrator
Subject: Construction Manager Update
Date: August 20, 2019
Comment:
Introduction:
The Construction Manager for the Fire Station project will be in attendance at the August 20thth meeting
to provide an update on the progress of the project.
Background:
CPMI has been hired by the City to be the Construction Manager for the Fire Station expansion and
remodeling. Paul Oberhaus is employee assigned to the Mendota Heights project.
At the Tuesday meeting, Mr. Oberhaus will be providing one of his monthly updates on construction
activities at the Fire Station.
Mark McNeill
City Administrator
page 3
CITY OF MENDOTA HEIGHTS
DAKOTA COUNTY
STATE OF MINNESOTA
Minutes of the Regular Meeting
Held Tuesday, August 7, 2019
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. Councilors Duggan, Paper, Miller, and Petschel
were also present.
PLEDGE OF ALLEGIANCE
Council, the audience, and staff recited the Pledge of Allegiance.
AGENDA ADOPTION
Mayor Garlock presented the agenda for adoption. Councilor Petschel moved adoption of the agenda as
revised with the addition of 9d and 9e.
Councilor Miller seconded the motion.
Ayes: 5
Nays: 0
CONSENT CALENDAR
Mayor Garlock presented the consent calendar and explained the procedure for discussion and approval.
Councilor Petschel moved approval of the consent calendar as presented and authorization for execution
of any necessary documents contained therein.
a. Approval of July 16, 2019 City Council Minutes
b. Acknowledge the June 25, 2019 Planning Commission Meeting Minutes
c. Acknowledge the July 11, 2019 Planning Commission Special Meeting Minutes
d. Acknowledge the March 20, 2019 Airport Relations Commission Meeting Minutes
e. Acknowledge the May 14, 2019 Airport Relations Commission Meeting Minutes
f. Approval of Temporary Liquor License for St. Thomas Academy, Sept 25-27, 2019
g. Approve Resolution 2019-55 Acceptance of MOMS Club Donation
h. Approve Police Officer Hire
i. Approve Purchase Order for Hagstrom King Park Basketball Expansion
j. Approve Purchase Order for Marie Park Pickle Ball Striping
k. Resolution 2019-56 Accept Plans-Authorize Ad for Bids on the Town Center/Village of Mendota
Heights Boulder Retaining Wall Improvements
l. Acknowledge Fire Synopsis from June 2019
page 4
m. Approval of Claims List
Councilor Miller seconded the motion.
Ayes: 5
Nays: 0
PUBLIC COMMENTS
No one from the public asked to speak.
PRESENTATIONS
A) PROCLAMATION RECOGNIZING THE SAINT THOMAS ACADEMY CLASS AAA
BASEBALL STATE TOURNAMENT CHAMPIONSHIP
City Administrator Mark McNeill reported that the Saint Thomas Academy baseball team won the Class
AAA State Tournament on June 20, 2019. Mayor Garlock read a proclamation naming Wednesday,
August 7, 2019 to be “Saint Thomas Academy State Baseball Championship Day” in Mendota Heights.
Councilor Duggan moved to approve the proclamation naming August 7, 2019 as “Saint Thomas
Academy State Baseball Championship Day” in Mendota Heights, Minnesota.
Councilmember Petschel seconded the motion.
Ayes: 5
Nays: 0
B) PRESENTATION OF RECOGNITION PLAQUE TO IRA KIPP FOR SERVICE ON THE
PARKS AND RECREATION COMMISSION
City Administrator Mark McNeill stated that Ira Kipp has been on the Parks and Recreation Commission
since February 2012 and has been a strong advocate for the city’s park system. He now tendered his
resignation in June 2019.
Mayor Garlock read and presented Ira Kipp a plaque in recognition of his service.
Councilor Miller expressed his personal appreciation to Ira Kipp for his invaluable insights and assistance
during the time that they both served together on the Parks and Recreation Commission.
PUBLIC HEARING
No items scheduled.
page 5
NEW AND UNFINISHED BUSINESS
A) RESOLUTION 2019-53 APPROVING A CRITICAL AREA PERMIT FOR
1175 ORCHARD PLACE (PLANNING CASE NO. 2019-21)
Community Development Director Tim Benetti explained this request for a Critical Area Permit for
Andy and Natalie Hunter for the construction of a garage/living space addition to their home and the
replacement of two decks. Mr. Benetti shared the details of the project and explained the necessity of a
critical area permit.
The applicant is seeking permission to construct a new addition to the home which will include a two car
garage with additional living space above, along with a new deck and a screened-in porch. It was noted
that the proposed work will cause minimal disturbance to the area and is reasonable.
Councilor Duggan moved to adopt RESOLUTION 2019-53 APPROVING A CRITICAL AREA
PERMIT FOR PROPERTY LOCATED AT 1175 ORCHARD PLACE.
Councilor Petschel seconded the motion.
Ayes: 5
Nays: 0
B) RESOLUTION 2019-54 APPROVING A CONDITIONAL USE PERMIT WITH VARIANCE
FOR OVERSIZED GARAGE STRUCTURE LOCATED AT 2319 SWAN DRIVE
(PLANNING CASE NO. 2019-22)
Community Development Director Tim Benetti explained that the Council was asked to consider
adopting a Conditional Use Permit and a Variance to allow an oversized garage in a residential district
for Tim and Jessica Carlson, 2319 Swan Drive. He provided background and details of the request.
The applicant is seeking permission to construct an addition to the dwelling and provide 1,496 square
feet of expanded garage and storage space. The applicant has demonstrated a reasonable need for the
oversized garage. The project will not create any negative impacts to the sensitive area of Rogers Lake.
Councilor Petschel asked for confirmation that this house and the immediate adjacent neighbor have no
basements due to the high water table. Mr. Benetti confirmed. She stated that it appeared to her that the
difficulty, which was not created by the homeowner, is the high water table, which does not permit them
to have a basement. Because of this, she would be willing to grant them the variance.
Councilor Duggan stated that staff and the applicant have established that there is a very good reason for
granting this variance in relation to the conditions that exist. He would be in support of the variance. He
suggested that Condition D, Item i.) be revised by eliminating the words ‘suitable and’. City Attorney
Andrew Pratt agreed that the removal would not take away from the stated condition.
Councilor Miller stated that he agreed with Councilor Petschel and would support the Variance request.
Councilor Duggan moved to adopt RESOLUTION 2019-54 APPROVING A CONDITIONAL USE
PERMIT FOR AN OVERSIZED GARAGE AND VARIANCE TO EXCEED THE MAXIMUM SIZE
ALLOWANCE OF 1500-SF. FOR AN ATTACHED GARAGE IN A RESIDENTIAL DRISTRICT
PROPERTY LOCATED AT 2319 SWAN DRIVE (PLANNING CASE NO. 2019-22) with the
suggested amendment to Condition D, item i.).
page 6
Councilor Miller seconded the motion.
Ayes: 5
Nays: 0
C) RESOLUTION 2019-57 ACCEPT BIDS AND AWARD CONTRACT FOR
THE WESLEY NEIGHBORHOOD IMPROVEMENTS
Public Works Director Ryan Ruzek explained that the Council was being asked to approve a resolution
accepting bids and awarding a contract for the Wesley Neighborhood Improvement Project. He noted
that this project also includes construction of a trail along Dodd Road from Maple to Mager Court.
Mr. Ruzek shared that two bids were received, with the lowest bid being submitted by Bituminous
Roadways, Inc. in the amount of $1,399,999.41. The engineer’s estimate on this project was
$1,158,239.50; making the low bid 20% over the engineer’s estimate. Based on bids being received for
other projects in this area, this is a favorable bid. Metro-wide, bids are coming in approximately 30%
higher than the estimates.
Staff recommended that the Council award the contract to Bituminous Roadways. One possible way to
reduce the cost of the construction would be to eliminate the rain gardens by a change order after the
contract is awarded. The rain gardens could then be added to another rain garden project proposed for
next spring.
Councilor Miller asked if residents affected by the elimination of the rain gardens had been notified. Mr.
Ruzek replied that once the project has been awarded, then staff would schedule a pre-construction
meeting with the contractor and get their estimated schedule. A letter would then be sent to the residents.
As of right now, the rain gardens would have been dug this fall and planted next June. The elimination
of them from this project would not have a major impact on the homeowners’ yards.
In regard to the trail, Councilor Miller asked if the two homeowners between Wesley Lane and Mager
Court were made aware of the trail construction. Mr. Ruzek replied that he met with all of the residents
along Dodd Road and discussed with them the trail location. Staff is proposing to remove the curb line
within that block and reduce the shoulder width on Dodd Road. Then there would not be a need for any
tree removal. One resident has some drainage issues, and staff is looking at stormwater improvements to
try to alleviate the problem.
Councilor Duggan asked if staff is anticipating any challenges with Xcel and additional delays. Mr.
Ruzek replied that there may be conflicts, as it relates to the trail construction, with the new
development going in along Maple Street. The new trail construction will get the ditches filled and a
gravel base placed. However, the trail may not be immediately paved if there are delays with Xcel or if
there are conflicts with the new development on Maple Street.
Councilor Petschel asked for clarification that the trail project would be coordinated with the developers,
so that the trail work would not have to be completed twice. Mr. Ruzek replied that he has provided the
plan sets to the developer of the Maple Street lots and they will be reviewing them.
page 7
Councilor Paper asked how many rain gardens are being planned. Mr. Ruzek replied that they are
planning for at least 12 rain gardens. He then asked if homeowners could request a rain garden. Mr.
Ruzek replied in the affirmative.
Councilor Petschel recommended that staff photograph the installation of the rain gardens, from
beginning to end. That would be a wonderful story for the Pioneer Press and the Heights Highlights.
City Attorney Andrew Pratt asked if the intent was to now exclude the rain garden costs from this
resolution. Mr. Ruzek replied that the specifications include provisions that the city could increase and
reduce quantities or delete a line item as the city would see fit. He believed the project needed to be
awarded as is, and then the City could subsequently approve a change order deleting the rain gardens from
the project.
Councilor Duggan moved to adopt RESOLUTION 2019-57 ACCEPTING BIDS AND AWARDING
CONTRACT FOR THE WESLEY NEIGHGBORHOOD IMPROVEMENTS.
Mayor Garlock seconded the motion.
Ayes: 5
Nays: 0
D) SCHEDULE WORKSHOP MEETING
City Administrator Mark McNeill explained that the Council needed to establish a workshop meeting
date to discuss the 2020 budget.
After a short discussion, the consensus was to schedule the Council Workshop Meeting on August 20,
2019 from 5:00 – 7:00 p.m.
E) ESTABLISH HEARING OFFICER FOR A DANGEROUS DOG APPEAL
City Administrator Mark McNeill explained that the Police Department has declared a dog as being
potentially dangerous as a result of an incident on July 31, 2019. The owner of the dog has requested a
hearing. In accordance with state law and the City Code, the City must hold the hearing within 14 days
of when the notice was served on the dog’s owner, which was August 5, 2019.
Per State Law, the hearing officer must be either an impartial employee of the city, or an impartial third-
party retained by the City. Because of the lack of time, Mr. McNeill suggested the Council designate the
City Administrator or his designee to be the hearing officer.
Councilor Miller moved to designate City Administrator Mark McNeill or his designee as the Hearing
Officer to conduct the dangerous dog hearing.
Councilor Duggan seconded the motion.
Ayes: 5
Nays: 0
page 8
COMMUNITY ANNOUNCEMENTS
City Administrator Mark McNeill announced that the last summer concert is scheduled for August 8th.
The Goombas Rock and Roll Band will play at 7:00 pm.
COUNCIL COMMENTS
Councilor Petschel stated she was thrilled to attend the Night to Unite events. She thanked the residents
for making the city such a fun and beautiful place.
Mayor Garlock expressed appreciation to everyone who attended Officer Scott Patrick’s Memorial on the
5th anniversary of his death.
Councilor Miller stated that the Fire and Police departments All Scramble at the Par 3 will be held on
August 18th. High school fall sports will start on August 12th. He reminded residents to drive safely.
Councilor Paper expressed appreciation to all of the neighborhoods that hosted parties for Night to Unite.
Councilor Duggan expressed his delight in the many Night to Unite events that were held. He stated that
Miss Minnesota is from Mendota Heights – Kathryn Kueppers. He said that resident Steven Capiz has
some interesting art work which will be featured at the State Fair. Other fairs taking place include the
Dakota County Fair, Polish Fair, and Irish Fair – he encouraged residents to attend.
ADJOURN
Councilor Duggan moved to adjourn.
Councilor Miller seconded the motion.
Ayes: 5
Nays: 0
Mayor Garlock adjourned the meeting at 7:47 p.m.
____________________________________
Neil Garlock
Mayor
ATTEST:
_______________________________
Lorri Smith
City Clerk
page 9
CITY OF MENDOTA HEIGHTS
DAKOTA COUNTY
STATE OF MINNESOTA
Minutes of the City Council Work Session
Held August 13, 2019
Pursuant to due call and notice thereof, a work session of the City Council, City of Mendota Heights,
Minnesota was held at the City Hall, 1101 Victoria Curve, Mendota Heights, Minnesota.
CALL TO ORDER
Mayor Garlock called the meeting to order at 1:00 pm. Councilmembers Duggan, Miller, and Petschel
were present. Councilor Paper was absent.
Also present were: Mark McNeill, City Administrator; Cheryl Jacobson, Assistant City Administrator;
Kristen Schabacker, Finance Director; Ryan Ruzek, Public Works Director; Tim Benetti, Community
Development Director; John Boland, Public Works Supervisor; Kelly McCarthy, Police Chief; David
Dreelan, Fire Chief; Tom Mattaini, Fire Relief Association Chair; Lorri Smith, City Clerk.
DISCUSSION OF FY2020 PROPOSED BUDGET
Overview
City Administrator McNeill provided an overview of the preliminary budget. The current proposed budget
includes a $475,000 increase in the general fund budget, which is proposed to be a 5.28% increase. The
majority of this increase is for increases to wages, health insurance, and workers compensation insurance.
Other reasons for the increase include a proposed new position for Office Assistant, and funding a full
year for the Parks Maintenance position, which is still being held as an open position.
Mr. McNeill noted that on an average priced home of $408,000, city taxes would increase 4.62% or
approximately $71.13 per year.
Councilor Petschel questioned if this proposed budget includes bond payments for the Fire Station.
McNeill stated that those are included. Petschel noted that the Council had previously agreed to dedicate
the money budgeted for the West St. Paul Ice Arena payments (which are now paid in full) and the
proceeds from the sale of the vacant lots at The Village towards the costs of the Fire Station
addition/remodel, to offset the increase.
McNeill noted that staff is recommending some equipment expenditures come from the fund balance
increase realized at the end of 2018.
page 10
Fire Relief Association– City Administrator McNeill stated that again this year is a request for the Fire
Relief Association increase of $500 per member, for a total increase of $18,000. McNeill explained that
this is the fifth year of a five year program to increase the city’s contribution for the firefighters by $500.
He said that before next year’s budget consideration, the department will complete another analysis of
area fire department’s pensions to see where Mendota Heights lies within that range.
Fire Department– Cost increases have been included in the budget for electric and gas, and other items
that are known to be increasing. It was noted that over time, the financial benefits from the solar panels
will increase. Otherwise, the budget is similar to previous years.
Chief Dreelan noted a request to replace the All-Terrain Vehicle at an estimated cost of $40,000. The Fire
Relief Association has accepted a $10,000 donation which would be put towards this purchase. It was
noted that additional equipment purchases are being planned for 2021. These could be grouped together
and equipment bonds might be used to finance the purchases.
Police – It was noted that there are no major changes to the Police Department’s budget.
Chief McCarthy noted a request to complete a comprehensive, City Hall space needs assessment. It is
estimated this will cost $15,000.
Chief McCarthy noted a request for a pole camera to monitor areas where criminal activity has increased.
This is estimated to cost $10,000, half of which may come from a donation from the Mendota Heights
Criminal Apprehension Fund.
The possible purchase of a Ford F-150 to replace the 2013 Ford Explorer was discussed. It is estimated
this would cost $45,500, including all emergency equipment, a topper, graphics, etc. This would allow
the Community Service Officer and other department duties to be done safer and more efficiently.
Public Works – Public Works Director Ryan Ruzek discussed a request to replace the current brush chipper
at a cost of $49,500 after a $13,000 trade-in of the current 2001 model. Instead of purchasing a new iece
of equipment, it is recommended instead to replace the grinding drums at $5,000.
The possible purchase of a new plow truck was discussed. This would cost $187,682, after a $35,000
trade-in of the current 2007 model. There is concern about the current 2007 plow truck making it through
the 2019-20 winter.
A request was made for a ¾ ton pickup truck, to replace the current pick up. The estimated cost is $36,300.
The current truck would be transferred to City Hall, for use by the Facilities Coordinator and the Natural
Resources staff.
Mr. Ruzek discussed the need for an Asphalt Hot Box Trailer. The current hot box is mounted on a large
plow truck which has resulted in the need for repairs. The hot box trailer would allow for earlier and later
patching operations during the year. The revised price of this is estimated to be $43,000.
page 11
Discussion was held on the construction of a salt storage bin. The current storage location is deteriorating
due to corrosion of the metal surfaces. This is estimated to cost $150,000. McNeill said that a
comprehensive space needs analysis should be done of the entire Public Works building in 2021.
Recycling – Ruzek explained that the funding for recycling is 100 percent County funded. It was noted
Dakota County is changing how they will allocate the funding in 2020, which may mean a decrease in
revenue for Mendota Heights. This could result in changes to what can be accepted at Clean Up Day, or
an increase in the prices for the disposal of certain items at the event.
City Hall – Capital outlay items of pumps, boilers, LED can light conversion, and parking lot
improvements were discussed.
Engineering – Mr. Ruzek explained the job duties that the Natural Resources staff have taken on. There
are no changes proposed for the Engineering budget.
Utilities – McNeill noted there are no major changes in this budget.
Storm Water Utility - There were no major increases proposed. Mr. Ruzek said that staff will be proposing
a rate increase for storm water utility charges. For residential properties, it is currently set at $12.00 per
quarter. It is proposed to raise to $16 per quarter in 2020. There was no increase in 2019.
Sanitary Sewer Utility – It is proposed to purchase a Jet Truck, to replace the current 1991 JCT jetter truck.
The cost, after trade-in, is estimated to be $234,000. The use of this truck reduces the chance of sewer
backups in the city. Funding would be from the sanitary sewer fund.
City Council – McNeill noted that the budget includeds $14,000 for the 2020 Fourth of July fireworks.
Administration –McNeill reviewed the Administration budget. He is proposing an additional staff person
to work with Recreation, Community Development, and Finance. The net cost of this position would be
$65,000.
Elections – McNeill reviewed the Elections budget, and stated that the additional costs for the Presidential
Primary will be reimbursed by the State of MN. Discussion centered on lowering costs by not providing
in-person absentee voting at the Mendota Heights City Hall. It was noted that voters would still be able to
vote in-person absentee at the Northern Service Center in West St. Paul, the Western Service Center in
Apple Valley, or at Dakota County Administration in Hastings. The Council was in favor of this change.
IT – Assistant City Administrator Jacobson stated that the budget is proposed to increase due to the
purchase of Microsoft licensing and the addition of a new telephone system. Servers are also now hosted
at LOGIS.
Community Development – Community Development Director Benetti noted that much of the proposed
increase is due to the possible need for a Consultant Planner to work on changes that may be needed on
the Comprehensive Plan.
page 12
Contractor licensing was discussed; staff is recommending that the City no longer issue these licenses due
to the need for background investigations to be performed. This would result in a revenue decrease of
approximately $15,000. The Council was in agreement to stop issuing these licenses in 2020.
Code Enforcement – Discussion centered on the need for additional staff help for Code Enforcement. Mr.
McNeill stated that the proposed new Office Assistant position could work on this for a few hours per
week.
It was noted that the Parks and the Recreation budgets, along with the CIP will be discussed on August
20th, at 5:00 pm.
ADJOURNMENT
There being no further business, Mayor Garlock adjourned the meeting at 2:55 p.m.
Neil Garlock
Mayor
ATTEST:
Lorri Smith, City Clerk
page 13
CITY OF MENDOTA HEIGHTS, DAKOTA COUNTY, MINNESOTA
PARKS AND RECREATION MEETING
June 11, 2019
The June meeting of the Mendota Heights Parks and Recreation Commission was held on
Tuesday, June 11, 2019, at Mendota Heights City Hall, 1101 Victoria Curve.
1. Call to Order – Chair Steve Goldade called the meeting to order at 6:30 p.m.
2. Roll Call – The following Commissioners were present: Chair Steve Goldade,
Commissioners Pat Hinderscheid, Ira Kipp, Stephanie Meyer, David Miller, and Dan Sherer.
Commissioner Bob Klepperich was absent as was Student Representative Matthew Boland .
Staff present: Recreation Program Coordinator Meredith Lawrence, Assistant City Administrator
Cheryl Jacobson and Public Works Director Ryan Ruzek.
3. Pledge of Allegiance
4. Approval of Agenda
Item 8 Unfinished Business and all subheadings and Item 9 New Business and all subheadings
were switched in the order of presentation.
Motion Meyer/second Hinderscheid to approve the agenda as amended.
AYES 6: NAYS 0: ABSENT 1
5. Approval of Minutes
Motion Hinderscheid/second Miller to approve the minutes of the May 14, 2019 Parks and
Recreation Commission meeting. AYES 6: NAYS 0: ABSENT 1
Motion Kipp/second Sherer to approve the minutes of the May 23, 2019 Parks and Recreation
Commission Work Session meeting. AYES 6: NAYS 0: ABSENT 1
6. Citizen Comment Period (for items not on the agenda)
Mr. Matt Steininger, 1733 Lansford Lane, inquired about the possibility of adding a “light
summer trail” or small path on the Wachtler easement which is on the northwest side of the Par
3 Golf Course. He had sent a memo to the city and received replies from Chair Goldade and
Public Works Director Ryan Ruzek.
Commissioner Sherer noted that this seemed like a reasonable proposal and asked Mr. Ruzek
to provide an explanation on the purpose of the easement. Mr. Ruzek replied that it appears that
the neighboring residents have landscaped the area as part of their properties. His guess was
that it was undeveloped road right-of-way; as the intent had been to extend Wachtler Avenue. It
is a city easement that has not been vacated to the property owners and is identified on the
Dakota County Property Records as public right-of-way.
If the city decided to turn this into a trail, the biggest challenge would be getting the residents to
remove their landscaping and the other challenge would be funding – grading, surveying,
designing, and construction. If the city decided to put in a trail it would be an eight-foot wide
bituminous trail. He was unsure of what a ‘light summer trail’ would be. He also noted that this is
the second request he has received for this particular trail in the last few weeks.
page 14
Chair Goldade suggested that the Commission consider this for a future agenda item
discussion.
Commissioner Miller stated that this may raise a secondary point, that being when the
Commission receives ad hoc requests like this, how would the Commission treat them in
relation to their long-term capital plan. Specifically, how often is the capital plan reviewed and
updated to ensure that it is current and viable.
7. Acknowledgement of Reports
7.a Par 3 Update / 7.b Recreation Update
Chair Goldade opened the floor for comments and questions from the Commissioners.
Recreation Program Coordinator Meredith Lawrence noted that she provided the April 2019
Financial Report to each of the commissioners at their seats.
Chair Goldade noted that between the annual budget basis, the revenue total and the
expenditures total there was an approximate $15,000 or $16,000 difference. He then asked if
there was a reserve fund or an expectation that would be made up from? Ms. Lawrence replied
that they do have money in reserve, approximately $40,000. That is where that money would
come from.
When asked, Ms. Lawrence noted that the Bogey with the Red and Blue has been scheduled
for Sunday, June 23, 2019.
Motion Meyer/second Sherer to acknowledge receipt of the staff reports.
AYES 6: NAYS 0: ABSENT 1
9. New Business
9.a Location of Portable Restroom at Hagstrom King Park
Public Works Director Ryan Ruzek, explained that the city supplies a portable toilet facility at
Hagstrom-King Park. In the past, there has been a single use restroom facility tucked away into
a wooded area of the park. Any facility that the city provides needs to be ADA compliant.
Therefore, this year the city changed their facilities to the larger ADA compliant portable toilets;
this necessitated the locations to also be ADA compliant. For ADA compliance, the portable
toilet facility at Hagstrom King Park was moved to the parking lot.
Staff has received a call opposed to this location and requested the Commission provide an
opinion on a suitable location, or remove the facility altogether. Letters were sent to the
residents near the park for suggestions.
Commissioner Hinderscheid asked if the facility needed to be on a hard surface. Mr. Ruzek
replied in the affirmative. Also, it needs to be accessible by the companies for cleaning ideally
staff would not want them driving on the trails.
Commissioner Sherer noted that the previous location, in between the playground and the
baseball field was ideal. A hard surface would need to be constructed so wheelchairs could
have access.
page 15
Ms. Orapat Sivatanpisit, 600 Hampshire Drive, expressed her appreciation to Mr. Ruzek for
inviting her to attend this meeting to provide comment. She has resided in her home for 27
years and the portable facility has always been in the park tucked away into the wooded area.
The residents she has spoken to would prefer it to be returned to that area.
The current location is immediately in front of her house and she can see it from her dining room
window when sitting at the table. To put a fence around it would not improve the view. It would
look like there was a dumpster there. Even the thought that it would only be for the summer is
not appealing as she appreciates the view to the park and the greenery. She would like the
portable toilet to be closer to the baseball field, near the trees. This would be wheelchair
accessible, serviceable to the cleaning company, and convenient for the playground and the
baseball field.
Chair Goldade summarized the five possibilities he heard:
• On the path between the parking lot and the playground
• On the path to the basketball court
• Between the playground and the baseball field, off of the road
• Stay in the current parking lot but change the spot in the parking lot
• Completely remove the facility
Motion Meyer to locate the portable toilet facility north of the T where the playground path meets
the path to the basketball court. This motion died for lack of a second.
Commissioner Hinderscheid suggested some additional landscaping to camouflage the facility.
Commissioner Sherer felt this location would get some resistance from the adjacent residents, it
being so close. He suggested it be located down the path towards the playground so the odors
are not strong to the playground users.
Motion Sherer, second Meyer to locate the portable toilet facility midway on the north/south trail
towards the playground. An amendment by Hinderscheid, approval Sherer to use landscaping
to minimize the visual detraction.
Commissioner Kipp commented that this location would be pretty far from the ballfield. He would
prefer to see it located to the north, along the wooded area. It would be less obtrusive and
easier to get to from the ballfield, the playground, and the tennis courts.
Chair Goldade summarized that Commissioner Kipp would prefer to see a new path north to the
woods and place the facility there. Commissioner Kipp confirmed.
Chair Goldade call for a vote on the motion on the floor
AYES 5: NAYS 1: ABSENT 1
8. Unfinished Business
8.a Community Engagement Update
Recreation Program Coordinator Meredith Lawrence, reminded the Commission of their
discussion at the May meeting about the upcoming community engagement effort. Vice-chair
page 16
Klepperich, Chair Goldade, and she met to prepare for the meeting and determined that it would
be best to have the commissioners go in pairs to these meetings. New group assignments were
made as follows:
• Community Education: Bob Klepperich, Stephanie Meyer
• Mom’s Club: Daniel Sherer, David Miller
• Rotary Club: Pat Hinderscheid, Steve Goldade
• Mendota Heights Senior Living Facility: Ira Kipp, Steve Goldade
• Local Students: Matthew Boland, Steve Goldade
The model discussion template was included in the Commission packet and additional was
information provided.
Commissioner Meyer asked if the commission was interested in adding the Somerset and
Mendota PTA groups back onto the list. Chair Goldade stated that it may be difficult to get onto
their agendas due to the tight timeframe.
Ms. Lawrence noted that the check-in sheet for the outreach would be considered public
information. It could be considered a data request if someone were to request it. Therefore, the
Commission would need to provide a Tennessen Warning or a privacy notice. She requested
that the commission discuss and determine if the check-in sheet was necessary or if they
wanted to make the check-in sheet voluntary. There would need to be some sort of
acknowledgement that the participants were aware of the privacy notice. Commissioner Meyer
suggested a check-box by the name indicating that they were aware of and agreed to the
privacy notice.
Commissioner Hinderscheid suggested adding to the list of question if the groups had ever
considered making donations towards park improvements. Ms. Lawrence cautioned that if they
were going to ask about donations then they would need to figure out how a donation process
would work.
8.b Work Session Date
Recreation Program Coordinator Meredith Lawrence, explained that one of the 2019-2020 draft
City Goals and Objectives was to interact with the advisory commissions. Staff recommended a
joint work session with the City Council to take place on Tuesday, July 9, 2019, at 6:30 p.m. in
the City Council Chambers, which the City Council approved.
Discussion topics include the 2020 Budget and needs for parks improvements, the future of the
Off Leash Dog Park, how to obtain Community Feedback, and any necessary changes to the
Commission’s Rules of Order.
This is the normal Commission meeting date so most, if not all, were available; the exception
being Chair Goldade. Commissioner Kipp was unsure of his availability.
8.c Golf Tournament Discussion
Recreation Program Coordinator Meredith Lawrence, noted that when Chair Goldade, Vice-
chair Klepperich, and she met to discuss plans for the golf tournament, they discussed possibly
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waiting until September of 2020 in order to do some additional planning, determine what the
purpose of the tournament is, and to find a good suitable day for the event.
They are considering a non-school day in September 2020; they recommended it be
categorized as an event and not as a tournament so it would be less competitive and get more
interest from the community.
Commissioner Meyer suggested the event take place earlier in the season to encourage
participation throughout the season rather than at the end. The first Friday in May is a non-
school day and would be a good date.
9. New Business (continued)
9.b Schedule Second Parks Visit - September
Recreation Program Coordinator Meredith Lawrence reminded the Commission of the tour that
was done May 23, 2019, which was very well received. Chair Goldade and Vice-chair
Klepperich recommended a second tour be scheduled in late September 2019. The parks to be
visited would include Marie Park, Friendly Hills Park, Ivy Hills Park, and Kensington Park.
After checking with calendars, it was determined that the next park tour would take place on
Wednesday, September 25, with a start time of 4:30 pm
9.c Adjustable Hoops South of 62
Chair Goldade explained that the adjustable basketball hoops at Marie Park have been well
received by the community and requested the Commissioners discuss the potential of adding
adjustable hoops at a park south of Highway 62. There are five parks south of Highway 62 that
have basketball courts. Staff recommended the commission focus on Mendakota Park and
Hagstrom King Park as the best options. Mendakota Park currently has two hoops that are not
adjustable.
After discussion and suggestions, the following motion was made:
Motion Hinderscheid/second Miller that the adjustable basketball hoops be added to the
Hagstrom King Park along with additional half-court AYES 6: NAYS 0: ABSENT 1
9.d Process for Additions to the Parks and Recreation Commission Agenda
Recreation Program Coordinator Meredith Lawrence, stated that Chair Goldade, Vice-chair
Klepperich and she met to discuss the proper process for additions to the agenda. Their
recommendation was that if anyone would like to add an addition to the agenda they contact her
and Chair Goldade and/or Vice-chair Klepperich before 3:00 pm the day prior to the meeting.
She noted that not all requests for agenda items would be included for the following meeting.
Determination would be made based on the nature of the item and the timing, the time needed
for staff to research the request, and the number of items already on the agenda.
Chair Goldade explained that the commissioners typically receive the agenda packets on the
Friday before the scheduled meeting. This would allow the commissioners time to review the
agenda and suggest any additions or edits by 3:00 pm that Monday before the scheduled
meeting.
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Commissioner Miller asked what the process was for setting the original agenda. Chair Goldade
replied that he, Vice-chair Klepperich, and Ms. Lawrence have been meeting to set the agenda
approximately two weeks prior. Commissioners could proactively be in communication with him
or Vice-chair Klepperich or Ms. Lawrence in regards to getting items on the agenda. This
process would only be for after the agenda had already been set.
Ms. Lawrence noted that commissioners were also welcome to make any agenda topic
suggestions during their Commissioner Comment period.
9.e Parks Celebration Survey Results
Chair Goldade commented that the Parks Celebration was fantastic.
Recreation Program Coordinator Meredith Lawrence, noted that the Commission hosted a
booth that provided materials, information on Polco, and provided a survey. Everyone took a
turn to volunteer at the booth. Staff was very happy with the turnout at the celebration and they
estimated approximately 2,000 attendees.
Unfortunately, they only received 20 surveys back and not all questions were answered on each
survey. The results of the survey were included in the agenda packet.
Commissioner Meyer asked for an explanation of what “introduction to games before committing
to MHAA teams” meant. The thought was that maybe the city should hold a small introductory
camp to a sport for kids who have never participated in it before – a sports sampler possibly.
10. Staff Announcements
Recreation Program Coordinator Meredith Lawrence provided the following announcements:
• The City received a grant from the USTA for remodeling the Marie Park tennis courts. A
date needs to be set for a ribbon cutting. Staff is looking at June 25th, but the date has
not been confirmed yet.
• Summer programs started June 10 – camps are off to a good start, numbers are looking
really good
Public Works Director Ryan Ruzek provided the following announcement:
• At the end of March, the city applied for two outdoor recreation grants through the
Department of Natural Resources. The city was notified on June 10 that they were not
selected for the Hagstrom King improvements; however, the city selected was selected
to receive a $180,000 grant for the improvements to Wentworth Park. Mr. Ruzek plans
on taking the original Hagstrom proposal to the City Council on June 18 in the hopes that
they move ahead with that project. He also intends to have the Wentworth discussions
as part of the Joint City Council/Parks and Recreation Commission workshop in July
2019.
11. Student Representative Update
N/A
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12. Commission Comments and Park Updates
Commissioner Ira Kipp:
• Was very happy to see the public come to this meeting. He encouraged others to do the
same.
Commissioner Dan Sherer:
• Weather has been fantastic and he loved seeing all of the activities in the parks, on the
trails, and in the ballfields.
• It’s amazing how much activity Hagstrom King Park gets; every summer it gets busier.
This is an indication of how the young families are attracted to the neighborhood.
• Friendly Hills – he noticed the pad and bike racks are in, they look great. The park is in
good condition. The location of the portable toilet in this park is probably not ideal either.
It may be ADA accessible but it is not convenient for the playground or the ballfield.
Commissioner Stephanie Meyer
• Marie Park in really good shape
• Kensington Park is great
• She has had a couple of people randomly ask at Marie Park why there are not drinking
fountains at the parks. She made the assumption that it is very expensive but was
unsure if that was true. Mr. Ruzek replied that it is expensive. Generally one would see
drinking fountains in parks where there are plumbed restrooms. There are not water
mains running through the parks. Also, winterizing and maintenance needs would be
cost prohibitive.
Commissioner Pat Hinderscheid
• He saw in the parks survey that the improvement that received the most votes was for a
splash pad. Last year a splash pad also received the most votes. He requested that this
be put on as an agenda item at their next meeting.
• Ivy Hills – it is very wet there so they have not been able to get in with the equipment. He
also saw someone there last week with their dog off-leash back behind the playground.
This dog ran towards a woman who was walking there and the owner was yelling. He
just wanted to make a friendly reminder that dogs are supposed to be leashed in the
parks.
• At the Dog Park someone has tried to generate some shade and hung some kind of
sheet or something attached to the picnic table. It is very unsightly and hopefully
someone can take a look at that and make a correction. He also asked if anyone had
planted trees at the Dog Park or if that was the owners doing that. Mr. Ruzek replied that
he was unaware of any tree planting occurring at the Dog Park.
• He expressed his appreciation for all of the work done on the Park Celebration. It was a
great event.
• Congratulations on obtaining the grant.
• The bicycle rack at Ivy Hills is very nice to have and it is being used.
Commissioner David Miller
• Was very pleased to hear about the grant
• He asked if grants of that nature cover things like splash pads and requested that this
topic be added as an agenda item
• The Parks Celebration had a real good turnout and was very well run. He was pleased to
see all of the answers to the survey.
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• Victoria Highlands is in good shape and is getting a lot of use from the Little League. The
portable toilet is in a very prominent and usable space.
Chair Steve Goldade
• Good to hear the news on Wentworth and the warming house
• He saw that the tennis court at Wentworth needs a little work and maybe there is an
opportunity there to move the tennis court at Wentworth to a pickle ball court
• Valley Park is a great park in the middle of the city – 90 acres – it is a great place to go
for a walk
• He had a chance to visit Pilot Knob Hill and encouraged people to visit. It is close to the
Dog Park and has trails with probably one of the most fantastic views of downtown
Minneapolis / St. Paul that he has ever seen. There is signage throughout about the
wonderful history and encouraged all to go if they are looking for a no-cost outing for the
family.
• He received an email from a citizen thanking the Commission for the picnic tables at
Market Square Park
• He received an email about the bike racks and is excited about the amount of positive
feedback he has received.
• He enjoyed his time at the 5K Race; congratulations to the Mayor and his team for
putting on a well organized event – including city staff and the Police Department.
• Reminder: June 19th activity – the Teddy Bear Band at Mendakota Park: Bring Your Own
Bear.
• He noticed flowers by the benches on Lexington Avenue and they look nice
• Great things happening in Marie Park – stop and see the new tennis courts.
13. Adjourn
Motion Meyer/Second Sherer to adjourn the meeting at 8:11 PM
AYES 6: NAYS 0: ABSENT 1
Minutes Taken By:
C. Darlene Oehlke
Independent Contractor
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Date: August 20, 2019
TO: Mayor, Council and City Administrator
FROM: Dave Dreelan, Fire Chief
SUBJECT: Resolution 2019-58 Authorizing the Donation of Obsolete Fire Equipment
COMMENT:
Introduction
The City Council is asked to declare certain obsolete pieces of equipment as being surplus, and
authorize their donation to a charitable organization.
Background
Over the past several years the MHFD has replaced much of its hose, nozzles, and adapters,
some of which is over thirty years old. Much of it is unusable because of wear and tear, or the
size of the equipment no longer is compatible with today’s equipment.
Some of the old equipment was given to the Mendota Heights Public Works Department for the
purpose of flooding ice rinks. Other pieces were offered for sale; in the two months that the ads
were run, only one nozzle, and 300 feet of hose were sold.
The material which remains is as follows:
• 900 ft. fire hose
• 2 high flow nozzles
• 2 low flow nozzles
• 21 miscellaneous adapters and fittings
A member of the Minnesota Fire Engine Club (MFEC) saw the ads, and asked if the City would
consider donating the remaining equipment. The MFEC is a 501c.3 organization, which is based
in Randolph, Minnesota. It restores old fire equipment either for historical display, or to donate
to small rural fire departments which have limited budgets for purchasing active equipment.
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Recommendation
I recommend that the remaining material be declared surplus property, and that it be authorized
that the material be donated to the Minnesota Fire Engine Club.
Action Required
If the Council concurs, it should, by motion, approve the following Resolution, 2019-58:
A RESOLUTION DECLARING CERTAIN FIRE EQUIPMENT TO BE SURPLUS, AND
AUTHORIZING ITS DONATION TO THE MINNESOTA FIRE ENGINE CLUB
Dave Dreelan
Fire Chief
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CITY OF MENDOTA HEIGHTS
DAKOTA COUNTY, MINNESOTA
RESOLUTION 2019- 58
A RESOLUTION DECLARING CERTAIN FIRE EQUIPMENT TO BE SURPLUS, AND
AUTHORIZING ITS DONATION TO THE MINNESOTA FIRE ENGINE CLUB
WHEREAS, the City of Mendota Heights follows the requirements in State Law and City
Code for the appropriate disposition of unused or unneeded property; and
WHEREAS, the Fire Chief recommends that following materials currently owned by the
City should be considered surplus property:
• 900 ft. fire hose
• 2 high flow nozzles
• 2 low flow nozzles
• 21 miscellaneous adapters and fittings; and
WHEREAS, the City Council of the City of Mendota Heights has duly considered this
matter and declares the afore listed material to be surplus, and of no further need or value to the
City; and
WHEREAS, the Minnesota Fire Engine Club, based in Randolph, Minnesota, is a 501c.3
organization which restores old fire equipment for historical display or donation to small fire
departments which lack financial resources to purchase new equipment; and
WHEREAS, the donation of the listed surplus equipment from the Mendota Heights Fire
Department to the Minnesota Fire Engine Club would allow the material to be put to good and
charitable use.
NOW THEREFORE BE IT RESOLVED, the Mendota Heights City Council hereby
declares the listed hose, nozzles, and miscellaneous adapters and fittings to be surplus, and
authorizes the Mendota Heights Fire Department to donate said material to the Minnesota Fire
Engine Club.
Adopted by the City Council of the City of Mendota Heights this 20th day of August, 2019.
CITY COUNCIL
CITY OF MENDOTA HEIGHTS
ATTEST
___________________________
_______________________ Neil Garlock, Mayor
Lorri Smith, City Clerk
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Request for City Council Action
DATE: August 20, 2019
TO: Mayor and City Council, City Administrator
FROM: Meredith Lawrence, Recreation Program Coordinator
SUBJECT: Acknowledge June Par 3 Financial Report
COMMENT:
INTRODUCTION
The City Council is asked to acknowledge the June Par 3 Financial Report.
BACKGROUND
Attached is the June Par 3 Financial Report. During the month of June the course had a total of 1542 rounds
of golf played. The course was open for 30 days.
The June 2019 precipitation numbers were lower than the monthly average. The course received 2.72 inches
of rain compared to the monthly average of 4.25 inches.
Throughout the month of June, the Par 3 had a total monthly revenue of $29,931. This includes Greens
Fees, Recreation Programs and Concessions. After the month of June the Par 3 had a year to date revenue
total of $82,783. The course’s June expenditures totaled $16,546. The year to date expenditure total was
$67,446. The course currently has a profit of $15,337 for the 2019 season.
RECOMMENDATION
Staff recommends that the Mendota Heights City Council acknowledge the June, 2019 Par 3 Financial
Report.
ACTION REQUIRED
If the Council concurs, it should, by motion acknowledge the June, 2019 Par 3 Financial Report.
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MENDOTA HEIGHTS PAR 3
BUDGET TO ACTUAL REPORT
June 2019 (50.00% OF YEAR)
June
REVENUES June YTD YTD YTD
BUDGET 2019 2019 %2018
GREENS, LEAGUE & TOURN FEES $100,000 $21,856 $44,344 44.34%$35,433
RECREATION PROGRAMS $38,000 $3,535 $30,408 80.02%$28,887
CONCESSIONS $18,000 $4,500 $7,962 44.23%$6,793
SUNDRY REVENUE $0 $40 $70 0.00%$36
INTEREST $250 $0 $0 0.00%$0
CAPITAL CONTRIBUTIONS $0 $0 $0 0.00%$0
PAR 3 FUND REVENUE TOTAL $156,250 $29,931 $82,783 52.98%$71,149
EXPENDITURES June YTD YTD YTD
BUDGET 2019 2019 %2018
CLUBHOUSE SALARIES $34,300 $5,261 $10,194 29.72%$9,111
ADMINISTRATIVE SALARIES $22,608 $1,630 $8,662 38.31%$8,250
FICA/PERA $10,282 $914 $2,828 27.50%$2,777
MEDICAL INSURANCE $6,653 $554 $3,326 50.00%$3,168
U/E & W/C INSURANCE $2,080 -$61 $2,762 132.77%$2,286
RENTALS $4,500 $91 $1,591 35.36%$1,838
UTILITIES $12,660 $1,218 $5,078 40.11%$5,157
PROFESSIONAL FEES - AUDIT $2,650 $0 $1,577 59.52%$1,580
PROF FEES - CONSULTING FEES $0 $125 $531 0.00%$0
PROF FEES - GROUNDS MGMT $5,000 $0 $0 0.00%$3,455
PROF FEES - GROUNDS WAGES $22,000 $2,545 $6,597 29.99%$6,701
PROF FEES - TREE MAINTENANCE $1,500 $0 $0 0.00%$0
ADVERTISING/NEWSLETTER $400 $99 $235 58.78%$149
LIABILITY/AUTO INSURANCE $4,200 $0 $3,807 90.64%$3,290
OPERATING COSTS/SUPPLIES $6,350 $811 $1,968 30.99%$3,086
FUEL $1,350 $167 $518 38.40%$855
REPAIRS & MAINTENANCE $28,250 $1,546 $13,694 48.47%$18,108
SUNDRY/DUES/MILEAGE/CLOTHING $4,000 $1,043 $2,314 57.86%$1,947
CONTINGENCY $0 $0 $0 0.00%$0
ONLINE REG & CREDIT CARD FEES $4,175 $603 $1,763 42.23%$1,659
PAR 3 EXPENDITURES TOTAL $172,958 $16,546 $67,446 39.00%$73,417
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8/14/2019 Mendota Heights Building Activity Report Mike Andrejka, Building Official
July 1, 2019 thru July 31, 2019 January 1, 2019 thru July 31, 2019 January 1, 2018 thru July 31, 2018 January 1, 2017 thru July 31, 2017
Building Permit No.Valuation Fee Collected Building Permit No.Valuation Fee Collected Building Permit No.Valuation Fee Collected Building Permit No.Valuation Fee Collected
SFD 1 387,000.00$ $2,778.75 SFD 4 2,836,742.00$ $26,869.17 SFD 7 3,738,348.00$ $41,844.43 SFD 6 2,894,201.34$ 32,332.59$
Apartment 0 -$ $0.00 Apartment 1 9,135,000.00$ $63,519.64 Apartment 1 9,466,820.00$ $65,710.84 Apartment 2 23,022,000.00$ 158,402.65$
Townhouse 0 -$ $0.00 Townhouse 0 -$ $0.00 Townhouse 14 3,127,455.00$ $32,879.63 Townhouse 6 1,340,000.00$ 13,475.51$
Condo 0 -$ $0.00 Condo 0 -$ $0.00 Condo 0 -$ $0.00 Condo 0 -$ -$
Misc 77 1,214,457.25$ 14,953.53$ Misc 421 5,893,728.23$ 110,265.54$ Misc 320 4,180,995.51$ 62,194.56$ Misc 357 5,193,519.09$ 72,337.77$
Commercial 2 175,748.00$ $1,081.75 Commercial 16 11,212,662.00$ $42,287.64 Commercial 12 8,067,959.00$ $58,126.14 Commercial 20 5,008,347.00$ 50,937.73$
Sub Total 80 1,777,205.25$ 18,814.03$ Sub Total 442 29,078,132.23$ 242,941.99$ Sub Total 354 28,581,577.51$ 260,755.60$ Sub Total 391 37,458,067.43$ 327,486.25$
Trade Permit No.Valuation Fee Collected Trade Permit No.Valuation Fee Collected Trade Permit No.Valuation Fee Collected Trade Permit No.Valuation Fee Collected
Plumbing 12 $7,122.53 Plumbing 143 $22,926.28 Plumbing 140 $19,711.55 Plumbing 106 24,077.69$
Water 0 $0.00 Water 0 $0.00 Water 0 $0.00 Water 0 -$
Sewer 1 $75.00 Sewer 6 $450.00 Sewer 31 $2,325.00 Sewer 21 1,588.00$
Mechanical 25 $2,265.18 Mechanical 173 397.00$ $19,591.38 Mechanical 304 $30,417.66 Mechanical 216 30,345.87$
Sub Total 38 9,462.71$ Sub Total 322 42,967.66$ Sub Total 475 $52,454.21 Sub Total 343 56,011.56$
License No.Valuation Fee Collected Licenses No.Valuation Fee Collected Licenses No.Valuation Fee Collected Licenses No.Valuation Fee Collected
Contractor 31 $1,550.00 Contractor 263 $13,150.00 Contractor 259 $12,950.00 Contractor 264 13,200.00$
Total 149 1,777,205.25$ 29,826.74$ Total 1027 29,078,132.23$ 299,059.65$ Total 1088 28,581,577.51$ 326,159.81$ Total 998 37,458,067.43$ 396,697.81$
NOTE: All fee amounts exclude SAC, WAC and State Surcharge. Amounts shown will reflect only permit, plan review fee and valuation totals
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Request for City Council Action
MEETING DATE: August 20, 2019
TO: Mayor and City Council
FROM: Mark McNeill, City Administrator
Tim Benetti, Community Development Director
SUBJECT: Purchase Agreement between MH Development, LLC (Grand Real Estate Advisors)
and the City of Mendota Heights
INTRODUCTION
The Council is asked to consider approving a Real Estate Purchase Agreement between MH Development,
LLC (a/k/a Grand Real Estate Advisors) and the City of Mendota Heights. This agreement is for the four
remaining and undeveloped city-owned parcels located in The Village of Mendota Heights center.
BACKGROUND
On March 19, 2019, the City Council approved the final draft of a Request for Proposal (RFP) document
for the city-owned properties in The Village, which was publicly advertised and sent to more than 45 parties
which are in the development field. From this group notice, five development proposals were received.
On May 21, 2019, the council conducted a workshop, whereby all five developments were given a broad
overview of their plans; and as a result of this workshop, the council elected to have two of the groups move
forward in the selection process: Grand Real Estate Advisors and At-Homes Apartments.
On June 4, 2019, the City Council held a follow-up workshop, whereby each group gave a short public
presentation of their plans, and immediately afterwards each group was interviewed and permitted to
discuss details of their plans in a private closed-meeting session. The session was closed under the
Minnesota Open Meeting Law because the City was considering offers to purchase real property it owns.
Later that evening during the regular City Council meeting, the Council passed a motion directing staff to
begin preparing and negotiating a purchase agreement with Grand Real Estate Advisors.
PURCHASE AGREEMENT DETAILS
The Buyer agrees to purchase the city-owned properties for $1,100,000, with a $10,000 earnest money
deposit, and the remaining purchase price to be paid upon a future closing date on the properties.
The Buyer proposes to construct a three-story building with approximately 42 apartment units (each unit to
be occupied by at least one resident 55 years of age and over), along with an approximately 4,000-sq. ft.
attached restaurant, and an approximately 2,000-sq. ft. “co-working” space, all with underground parking,
surface parking, a trail connection, landscaping, and green space.
The Buyer and City have agreed that the developer must secure the rights (i.e. land-use approvals) to
develop this site on or before March 31, 2020. All environmental review of the land, title review, and other
contingencies must be satisfied by that date.
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The City also provided additional language that the Buyer understands and acknowledges the presence of
the Village Condominium/Townhomes homeowners association (or “HOA” for Common-Interest-
Community No. 464), as part of the future Development Agreement for the Project, which has yet to be
determined or completed. As is described in the Development Agreement, the parties will agree to negotiate
in good faith for the Buyer to financially support the operations of the HOA. The Buyer and City staff have
met with the local HOA representatives, and final details and negotiated outcomes regarding the Buyer’s
financial participation in the HOA have not yet been resolved. The Council will be advised of progress on
those negotiations.
All other conditions and obligations of both parties in the purchase agreement are routine and standard in
typical real estate agreements.
While not directly related to the Development Agreement, the Council should be aware that the City will
need to change the City Code to allow for alcohol to be served at the proposed restaurant location, as the
site is within 725 feet of St. Paul’s United Methodist Church. Section 3-1-12 provides that “…no license
shall be granted for a location within one thousand (1000) feet of a school, or seven hundred twenty five
(725) feet of any church. …In the case of a church, the distance is to be measured from the lot upon which
the establishment is to be located to the nearest point of the church building.”
BUDGET IMPACT
The Purchase Agreement provides that MH Development, LLC will deposit $10,000 in earnest money to
Commercial Partners Title, LLC, which is the city’s preferred title company. The remaining balance will
be paid upon approval of the final development plan and final real estate transfer/closing date on the site.
Additional legal staff fees and city staff time to complete this agreement and related agreement(s) will be
paid by the Buyer as part of their future planning application and escrow fees, which will be determined
later. The Buyer will be responsible for other additional development fees as this development plan and
project moves forward.
RECOMMENDATION
This Purchase Agreement was originally prepared by City Attorney Andy Pratt, with minor
modifications/edits requested by the Buyer. As presented herein, the agreement represents a fair-market
value offer for the city-owned properties, and the terms and condition made under this Purchase Agreement
are all found to be acceptable and may be approved.
Staff recommends that Council approve execution of the Purchase Agreement.
ACTION REQUIRED
If the Council concurs, it should by simple motion approve the Purchase Agreement between MH
Development, LLC and the City of Mendota Heights.
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REAL ESTATE PURCHASE AGREEMENT
This Real Estate Purchase Agreement (the “Agreement”) is entered into by and between
the CITY OF MENDOTA HEIGHTS, MINNESOTA, a municipal corporation and political
subdivision under the laws of the State of Minnesota (the “Seller”), and MH DEVELOPMENT
LLC, a Minnesota limited liability company (the “Buyer”), and is effective as of the ______ day
of _____________, 2019 (the “Effective Date”).
A. The Seller owns real property located in “The Village at Mendota Heights”
development consisting of 2.70 acres, which is legally described on the attached Exhibit A (the
“Real Property”).
B. The City Council of the Seller issued a document in March 2019 entitled
“Request for Proposals – Residential or Commercial Development Opportunity for City-Owned
Vacant Lots at The Village at Mendota Heights” (the “RFP”), which RFP was responded to by
prospective buyers and developers.
C. At its meeting on June 4, 2019, after considering all responses to the RFP, the
City Council of the Seller approved the selection of the Buyer as the preferred buyer and
developer of the Real Property, and directed City staff to negotiate with the Buyer and prepare
this Agreement.
D. In its RFP response, the Buyer proposed to construct a three-story building with
approximately 42 apartment units (each unit to be occupied by at least one resident 55 years of
age and over, in accordance with the Housing for Older Persons Act, as amended), an
approximately 4,700 square foot restaurant, and an approximately 2,000 square foot co-working
space, with underground parking, surface parking, a trail connection, landscaping, and green
space (collectively, the “Project”).
E. The Seller desires to sell and the Buyer desires to purchase the Real Property,
pursuant to the terms and obligations contained in this Agreement.
In consideration of the foregoing and of the following terms and conditions, the parties
agree as follows:
1. Sale and Purchase. The Seller agrees to sell to the Buyer, and the Buyer agrees
to purchase from the Seller, upon the terms and conditions set forth below, fee simple title to the
Real Property, along with any appurtenant easements and related property rights, and all other
improvements located thereon.
2. Purchase Price. The total purchase price to be paid by the Buyer to the Seller for
the Real Property (the “Purchase Price”) shall be One Million One Hundred Ten Thousand and
No/100 Dollars ($1,110,000.00), subject to adjustment as provided in Section 6 below. The
Purchase Price shall be payable as follows:
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2
(a) $10,000, as earnest money (the “Earnest Money”) to be deposited with
Commercial Partners Title, LLC (the “Title Company”) within five business days
following the Effective Date;
(b) the balance, to be payable on the Closing Date (herein defined), subject to
adjustment for prorations in accordance with this Agreement.
The Earnest Money shall be credited against the Purchase Price at Closing, provided that this
Agreement is not otherwise terminated.
3. Inspections and Examinations. Buyer and Seller agree as follows:
(a) Right of Entry. Commencing on the Effective Date through the
Contingency Date (herein defined) or earlier termination of this Agreement, the Buyer, its
employees, agents, contractors and subcontractors, shall have the right from time to time,
upon reasonable prior notice to the Seller, to enter upon the Real Property during normal
business hours to make non-invasive inspections at the Buyer’s sole risk, cost and
expense. The Seller shall have the right to accompany the Buyer during any activities
performed by the Buyer on the Real Property. The provisions herein that limit invasive
testing notwithstanding, Buyer’s inspections may include a Phase II environmental
inspection if recommended by a Phase I assessment, as well as all necessary soil borings
and soil testing. All inspections shall be made in accordance with applicable laws and at
the Buyer’s sole expense. The Buyer shall use care and consideration in connection with
its inspections and shall not damage the Real Property. If any inspection or test disturbs
the Real Property, the Buyer shall restore the Real Property to its original condition as of
the date of this Agreement after the completion of the inspections. The Buyer shall keep
the Real Property free and clear of any liens arising from its inspections and will
indemnify, defend, and hold the Seller harmless from all claims and liabilities asserted
against the Seller or sustained by the Seller as a result of any such entry or inspections or
violation of this paragraph by the Buyer, its agents, employees, or representatives,
provided that Buyer shall not be liable for existing conditions. The terms of this
paragraph shall survive termination of this Agreement and the Closing. The Buyer shall
deliver to the Seller copies of all third party reports with respect to the Real Property and
prepared for the Buyer (the “Third Party Reports”) within five (5) business days of the
Buyer’s receipt of the same.
(b) Documents and Materials. Within 20 days of the Effective Date, the
Seller shall provide the Buyer with copies of any of the following documents relating to
the Real Property that are within Seller’s possession: surveys, environmental reports, title
insurance reports and policies, and property inspection reports (the “Seller Documents”).
The Seller makes no representation or warranty regarding the Seller Documents or any
other materials relating to the Real Property that are delivered to the Buyer. Buyer may
not disclose the Seller Documents, except to those officers, employees, and other
authorized agents and representatives of the Buyer (including but not limited to
accountants, attorneys and lenders) to whom disclosure is reasonably necessary in
connection with the Buyer’s due diligence on the Real Property. The terms of this
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paragraph shall survive termination of this Agreement but shall expire upon
consummation of the Closing.
4. Contingencies. The obligations of the Buyer under this Agreement are
conditioned upon the Buyer’s approval, no later than 5:00 p.m. (Central Time Zone) by March
31, 2020 (the “Contingency Date”), of the following contingencies in the Buyer’s sole discretion
(the “Contingencies”):
(a) Physical. Inspection of all physical aspects of the Real Property.
(b) Legal Entitlements. Receipt from the Seller of all legal entitlements
necessary to own and operate the Project on the Real Property. “Legal entitlements”
includes, but is not limited to, all zoning and regulatory requirements under state law and
the Mendota Heights City Code related to the Project. These requirements include, but
are not limited to, necessary local, state and federal approvals related to zoning, land use,
rezoning (if necessary), variances (if necessary), conditional use permits (if necessary),
signage, watershed, environmental and other governmental approvals, and shall include
the Development Agreement contemplated by Section 20.a of this Agreement. The Seller
acknowledges the Real Property is currently zoned as MU-PUD Mixed Use, and will
undertake best efforts to cooperate with the Buyer to timely process the Buyer’s required
land-use approvals.
(c) Environmental. Review of all environmental reports and performance of
such other environmental assessments in accordance with Section 3 above.
(d) Utilities. Review and confirm that utilities are available and are suitable
for the Buyer’s requirements, including gas, water, electrical, sanitary sewer and storm
sewer.
(e) Access. Determine that the Property has sufficient access for its intended
use.
(f) Title. Confirm that all title requirements (see Section 9) are acceptable to
the Buyer.
(g) Financing. On or before the Contingency Date, the Buyer shall close on
financing for the Purchase Price of the Real Property and the costs to develop, construct
and equip the Project, in a total amount and on terms acceptable to the Buyer. In lieu of
closing on such financing on or before the Contingency Date, the Buyer shall submit a
letter of commitment from its lender, in form acceptable to the Seller and the City
Attorney.
(h) General. Determine that Buyer is satisfied with all other due diligence
considerations with respect to the Property.
The contingency set forth in this Section 4 shall automatically terminate and be void and
of no further effect, if the Buyer has not terminated this Agreement by having notified the Seller
of such termination by the Contingency Date (such notice is referred to as the “Notice to
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Terminate”). Upon a termination pursuant to this Section, (i) the Title Company shall promptly
return the Earnest Money to the Buyer, and (ii) the Buyer shall return all of the Seller Documents
to the Seller and deliver to the Seller any Third Party Reports that were not previously delivered
to Seller, and upon such return, neither party shall be further liable to the other hereunder. Only
provisions that explicitly survive this Agreement (the “Surviving Covenants”) shall remain in
effect after a termination pursuant to this Section.
5. Closing. The closing of the transactions contemplated by this Agreement (the
“Closing”) shall occur thirty (30) days following the date of the Notice to Proceed or such earlier
date agreed to by the parties in writing (the “Closing Date”). The Closing shall take place at the
office of the Title Company. The Seller shall deliver possession of the Real Property to the
Buyer on the Closing Date.
(a) Seller Closing Documents. On the Closing Date, the Seller shall execute
and deliver to the Buyer the following (collectively, the “Seller Closing Documents”):
(i) Deed. A Limited Warranty Deed (the “Deed”) conveying fee
simple title to the Real Property to the Buyer, free and clear of all encumbrances,
except the Permitted Encumbrances, in the form attached to this Agreement as
Exhibit B.
(ii) Seller’s Affidavit. A standard form affidavit of the Seller
indicating that on the Closing Date there are no outstanding, unsatisfied
judgments, tax liens, or bankruptcies against or involving the Seller or the Real
Property; that there has been no labor or material furnished to the Real Property
for which payment has not been made or for which a mechanic’s or materialman’s
lien could be filed; and that there are no other unrecorded interests in the Real
Property.
(iii) FIRPTA Affidavit. A non-foreign affidavit containing such
information as is required by Internal Revenue Code Section 1445(b)(2) and its
regulations.
(iv) Settlement Statement. A Closing settlement statement prepared
by the Title Company reflecting the financial provisions of this Agreement (the
“Settlement Statement”).
(v) Bring Down Certificate. A Bring Down Certificate pursuant to
the terms of Section 7 of this Agreement.
(vi) Such other documents as may be reasonably required or requested
by the Title Company or Buyer.
(b) Buyer Closing Documents. On the Closing Date, Buyer will execute and
deliver to Seller the following (collectively, “Buyer Closing Documents”):
(i) Purchase Price. The remainder of the Purchase Price, as provided
by Section 2(c) of this Agreement.
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(ii) e-CRV. An Electronic Certificate of Real Estate Value in form
acceptable to the Title Company and the Seller.
(iii) Settlement Statement. The Settlement Statement.
(iv) Such other documents as may be reasonably required or requested
by the Title Company or Seller.
6. Other Expenses. The parties shall be responsible for the following expenses at
Closing:
(a) Title Insurance and Closing Fee. The Seller shall pay all costs of the Title
Commitment (defined herein). The parties will each pay one-half of the closing fee or
charge imposed by Title Company. The Buyer shall pay the premium costs for any
owner’s or lender’s Title Policy which it desires.
(b) Transfer Tax. The Seller shall pay all state deed transfer taxes due on the
Deed to be delivered by Seller under this Agreement.
(c) Recording Costs. The Buyer will pay the cost of recording the Deed and
all other associated documents. The Buyer shall pay any mortgage registration tax
payable in connection with the financing of its purchase of the Real Property.
(d) Attorney Fees. Each party shall each pay its own attorney fees in
connection with the preparation and negotiation of this Agreement and the Closing,
except that a party defaulting under this Agreement or any of its respective Closing
Documents shall pay the reasonable attorney fees and court costs incurred by the non-
defaulting party to enforce its rights regarding such default.
(e) Income and Expenses. All income and expenses related to the Real
Property shall be prorated as of the date of Closing. Specifically, Seller will pay, on or
before the Closing Date, all special assessments levied, pending or deferred as of the
Closing Date. General real estate taxes payable in the year in which Closing occurs shall
be prorated on a daily basis, as of the Closing Date.
The obligations and responsibilities of each party under this Section shall survive Closing.
7. Representations and Warranties of Seller. The Seller represents and warrants to
the Buyer as follows:
(a) Organization and Authority. The Seller is a duly organized municipal
corporation and political subdivision under the laws of the State of Minnesota. Through
approving action of its governing body, the Seller has all requisite power and authority to
execute, deliver and perform its obligations under this Agreement and all of the other
documents and instruments delivered in accordance with this Agreement.
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(b) Fee Owner. The Seller is the fee title owner of the Real Property and has
full power and authority to convey good and marketable title to the Real Property to the
Buyer as identified in this Agreement.
(c) No Liens. As of the Closing Date, all payments will have been made for
all labor and materials, if any, furnished to the Real Property by or on behalf of the Seller.
(d) Enforceability of Documents. Upon execution by the Seller, this
Agreement and the other documents and instruments delivered in accordance with this
Agreement to which the Seller is a party shall constitute the legal, valid and binding
obligations of the Seller, enforceable against the Seller in accordance with their
respective terms, except as such enforcement may be limited by bankruptcy, insolvency,
reorganization, arrangement, moratorium, or other similar laws relating to or affecting the
rights of creditors generally, or by general equitable principles. The Seller has not
entered into any other contracts for the sale or lease of the Real Property, nor as of the
Closing Date will there be any rights of refusal or options to purchase the Real Property.
(e) Violation of Laws. To the Seller’s knowledge, since it obtained ownership
of the Real Propert y, the Seller has received no written notice from any governmental
authority that the Real Property violates any applicable local, state or federal law; and there
are no pending or uncured notices from a governmental authority relating to the Real
Property.
(f) Compliance with Agreements. The execution and delivery of this
Agreement and the compliance with the terms of this Agreement will not conflict with
and will not result in a breach of any of the terms or provisions of or constitute a default
under any agreement applicable to the Seller regarding the Real Property.
(g) Proceedings. To the Seller’s knowledge, it has received no written notice
of any actual or threatened action, litigation, investigation or proceeding of any kind
pending against the Seller (that would prevent the Seller from performing its obligations
under this Agreement) or the Real Property (including but not limited to condemnation
proceedings).
(h) Foreign Ownership. The Seller is not a "foreign person” (as defined in
Section 1445(f)(3) of the Internal Revenue Code and regulations issued thereunder).
(i) Hazardous Substances. The Seller warrants that, to the Seller’s
knowledge during its term of ownership of the Real Property, the Real Property has not
been used for the storage of hazardous substances or petroleum products and, as of the
date of this Agreement, the Seller is not aware of any facts of the existence of which
would constitute the violation of any local, state or federal environmental law, regulation
or review procedure which would give any person a valid claim under the Minnesota
Environmental Rights Act or the Federal Comprehensive Environmental Response,
Compensation, and Liabilities Act.
(j) Wells, Sewage Treatment Systems, Storage Tanks, Methamphetamine.
Except as disclosed in any environmental reports in the Seller’s possession, to the Seller’s
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actual knowledge, there are (i) no operating or abandoned wells on or under the Real
Property, (ii) no individual sewage treatment systems on or serving the Real Property,
(iii) no above ground or underground tanks are located in or about the Real Property, and
(iv) no methamphetamine production has occurred on the Real Property.
(k) No Tenants. The Seller has no existing tenants or leases with any person
or corporation for the Real Property, nor are there any parties in possession of any portion
of the Property as lessees, tenants at sufferance, or trespassers, nor has any party has been
granted any license, lease, or other right relating to use or possession of the Property.
(l) Right of Access. There is a right of access to the Real Property from a
public right-of-way.
(m) Floodplain. The Seller has no knowledge or notice that any part of the
Real Property is located within a floodplain or a soil erosion hazard area. No storm
water systems at the Real Property are connected to sanitary sewer lines.
(n) Green Acres. No part of the Real Property is currently in “Green Acres”
status for real estate tax purposes nor has any part of the Real Property been in “Green
Acres” status during any prior period which would materially limit development of the
Project on the schedule contemplated by this Agreement.
(o) No Personal Property. No personal property is being transferred to the
Buyer under this Agreement.
(p) Compliance with Agreements. The execution and delivery of this
Agreement and the consummation of the transaction contemplated by this Agreement do
not conflict with and will not, with or without notice or the passage of time, or both,
result in a breach of any of the terms or provisions of or constitute a default under any
instrument to which the Seller is a party or by which the Seller or its property is bound.
All representations of the Seller contained in this Agreement shall survive Closing for a
period of twenty-four months. At Closing, an authorized officer of the Seller shall execute and
deliver to the Buyer a certificate of the Seller certifying that the representations contained in this
Section are true as of the Closing or, if such representations are no longer true, describing, in
detail, the reasons why the representations are no longer true (the “Bring Down Certificate”). In
the event that any of representations, warranties or covenants set forth in this Agreement are not
true and correct as of the Closing Date, in addition to other remedies provided herein, the Buyer
may terminate this Agreement and receive a complete refund of the Earnest Money, or may elect
to Close under this Agreement notwithstanding the failure of such representation or warranty by
the Seller, in which event the Closing shall not be deemed a waiver of the failure of such
representation or warranty
EXCEPT ONLY FOR THE REPRESENTATIONS AND WARRANTIES MADE BY
THE SELLER IN THIS AGREEMENT OR IN ANY OF THE SELLER’S CLOSING
DOCUMENTS DELIVERED AT CLOSING, THE BUYER AGREES THAT IT IS
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PURCHASING THE REAL PROPERTY ON AN “AS IS” WITH “ALL FAULTS” BASIS
BASED ON THE BUYER’S OWN INVESTIGATION OF THE REAL PROPERTY.
8. Representations and Warranties of Buyer. The Buyer represents and warrants to
the Seller as follows:
(a) Organization and Authority. The Buyer is duly organized and formed,
validly existing and in good standing under the laws of the State of Minnesota. The
Buyer has all requisite power and authority to execute, deliver and perform its obligations
under this Agreement and all of the other documents and instruments delivered in
accordance with this Agreement and to carry out the Project. The individuals who have
executed this Agreement on behalf of the Buyer have been duly authorized to do so.
(b) Enforceability of Documents. Upon execution by the Buyer, this
Agreement and the other documents and instruments delivered in accordance with this
Agreement shall constitute the legal, valid and binding obligations of the Buyer,
enforceable against it in accordance with their respective terms, except as such
enforcement may be limited by bankruptcy, insolvency, reorganization, arrangement,
moratorium, or other similar laws relating to or affecting the rights of creditors generally,
or by general equitable principles.
(c) Office of Foreign Assets Control (OFAC) List. The Buyer is not currently
identified on the OFAC List, and is not a person with whom a citizen of the United States
is prohibited from engaging in transactions by any trade embargo, economic sanction, or
other prohibition of United States law, regulation, or executive order of the President of
the United States.
All representations of the Buyer contained in this Agreement shall be true on the Closing
Date and shall survive Closing for a period of six months.
9. Title Matters. Title examination shall be conducted as follows:
(a) Seller’s Title Evidence.
(i) Survey. The Seller shall deliver to the Buyer, within 15 days after
the Effective Date, a copy of the Seller’s most current survey of
the Real Property, if available (the “Survey”). If the Buyer desires
to update the Survey, it shall order the updated survey (the
“Updated Survey”), at Buyer’s sole expense, no later than five
business days following receipt of the Survey and Title
Commitment (herein defined).
(ii) Title Commitment. Within 30 days following the Effective Date,
the Seller shall cause the Title Company to deliver to the Buyer a
current commitment (the “Title Commitment”) for an ALTA
Form B 2006 Owner’s Policy of Title Insurance (the “Title
Policy”) committing to insure marketable title to the Real Property
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in the Buyer, subject only to the Permitted Encumbrances, in the
amount of the Purchase Price.
(b) Buyer’s Objections. No later than 5:00 p.m. (Central Time Zone) on or
before the date that is 15 days after the Buyer’s receipt of the Title Commitment and
Survey (or, if an Updated Survey is timely ordered in accordance with subparagraph (a)
above, the Updated Survey), whichever occurs last, the Buyer shall notify the Seller of
any matters in the Title Commitment and Survey which the Buyer finds objectionable
(the “Objections”). The Buyer’s failure to make Objections within such time period will
constitute a waiver of the Buyer’s right to make Objections. Any matter disclosed by the
Title Commitment and not timely objected to by the Buyer shall be a “Permitted
Encumbrance”.
(c) The Seller shall cooperate with the Buyer and use reasonable efforts to
cure any Objections within 60 days after receipt of the Objections (the “Cure Period”),
during which the Closing will be postponed as necessary. If the Objections are not cured
within the Cure Period, the Buyer will have the option to do either of the following by
notice to the Seller and the Title Company within five days after the expiration of the
Cure Period or such earlier date that the Seller notifies the Buyer that it will not cure one
or more Objections:
(i) terminate this Agreement, in which event the Earnest Money shall
be returned to the Buyer, a Quit Claim Deed shall be delivered from the Buyer to
the Seller, and thereafter this Agreement shall be void and of no further effect
except for the Surviving Covenants; or
(ii) waive the Objections and close the transaction contemplated by
this Agreement as if such Objections had not been made; or
(iii) for Objection(s) that exist only due to the Seller’s actions or
inactions during its ownership of the Real Property, the Buyer may attempt to
satisfy such Objection(s) at Seller’s expense, which Buyer may collect by
receiving a credit against the Purchase Price, up to a maximum expense to Seller
of $10,000, and delay Closing for up to sixty (60) days and, if Buyer does not
satisfy such Objection, Buyer may take either of the actions in (i) or (ii).
If no such notice is timely given by Buyer and Buyer proceeds to Closing, Buyer shall be
deemed to have waived the Objections.
10. Damage. If, prior to the Closing Date, all or any part of the Real Property is
substantially damaged by fire, other casualty, natural elements or any other cause, the Seller shall
immediately give notice to the Buyer of such fact, and, at the Buyer’s option (to be exercised by
notice to the Seller and the Title Company within 10 days after the Seller’s initial notice), this
Agreement shall terminate, in which event the Title Company shall return the Earnest Money to
the Buyer. Upon such Earnest Money return, neither the Seller nor the Buyer shall have any
further rights or obligations under this Agreement, except for the Surviving Covenants. If the
Buyer does not elect to terminate this Agreement despite such damage, or if the Real Property is
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not substantially damaged, the Seller shall promptly and diligently commence to repair such
damage or destruction and return the Real Property to its condition prior to such damage. If such
damage shall be completely repaired prior to the Closing Date, then there shall be no reduction in
the Purchase Price, and the Seller shall retain the proceeds of all insurance related to such
damage. If such damage shall not be completely repaired prior to the Closing Date, but the
Seller is diligently proceeding to repair, then the Seller shall complete the repair after the Closing
Date and shall be entitled to receive the proceeds of all insurance related to such damage after
repair is completed; however, the Buyer shall have the right to delay the Closing Date until
repair is completed. For purposes of this Section, the words “substantially damaged” mean
damage that would cost $25,000 or more to repair.
11. Condemnation. If, prior to the Closing Date, any governmental entity commences
any eminent domain proceedings (the “Proceedings”) against all or any part of the Real Property,
the Seller shall immediately give notice to Buyer of such fact, and, at the Buyer’s option (to be
exercised by notice to the Seller and the Title Company within 15 days after the Seller’s initial
notice), this Agreement shall terminate, in which event the Title Company shall return the
Earnest Money to the Buyer. Upon such Earnest Money return, neither the Seller nor the Buyer
shall have any further rights or obligations under this Agreement, except for the Surviving
Covenants. If the Buyer does not give such notice, then there shall be no reduction in the
Purchase Price, and the Seller shall assign to the Buyer at the Closing Date all of the Seller’s
right, title, and interest in and to any award made or to be made in the Proceedings. Prior to the
Closing Date, the Seller shall not designate counsel, appear in, or otherwise act with respect to
the Proceedings without the Buyer’s prior written consent.
12. Assignment. The Buyer shall not assign this Agreement without the prior written
consent of Seller. Any such permitted assignment shall not release the Buyer from its obligations
under this Agreement. The foregoing notwithstanding, the Buyer may assign this Agreement to
a party that is under common control with Buyer.
13. Notices. All notices shall be in writing and considered to have been duly given if
sent by first class certified mail or delivered to the return address as set forth below by reputable
overnight delivery service or local messenger, or to such other address as such party may
hereafter designate by written notice to the other party. Notices may also be sent by email.
Notices given by certified mail shall be effective five business days after their postmark; notices
delivered by overnight delivery service or local messenger shall be effective upon receipt or
refusal of receipt; and notices by email shall be effective upon delivery, provided that if an email
notice is delivered after 5:00 PM or on a non-business day, then such email notice shall be
effective on the next business day. Any party may change its address for the service of notice by
giving written notice of such change to the other party, in any manner above specified, 10 days
prior to the effective date of such change. Notice by a party shall be effective if delivered by
such party’s attorney.
To Seller: City of Mendota Heights, Minnesota
1101 Victoria Curve
Mendota Heights, Minnesota 55118
Attn: Mark McNeill, City Administrator
[t] 651.452.1850
[e] markm@mendota-heights.com
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Copy to: Best & Flanagan LLP
60 South Sixth Street, Suite 2700
Minneapolis, MN 55402
Attn: Andrew J. Pratt, City Attorney
[t] 612.843.5823
[e] apratt@bestlaw.com
To Buyer: MH Development LLC
c/o Grand Real Estate Advisors, LLC
90 Dale Street South
Saint Paul, Minnesota 55102
Attn: Judd Fenlon
[t] 651.492.1741
[e] jfenlon@grandrea.com
14. Remedies. Time is of the essence of this Agreement. A party hereunder shall be
entitled to not less than thirty days’ notice of and right to cure any alleged default, prior to the
other party enforcing its remedies hereunder.
(a) If the Buyer defaults in the performance of any of its obligations under
this Agreement, the Seller may elect, as its sole remedy, to terminate this Agreement by
written notice to the Buyer and the Title Company and upon such termination the Title
Company shall promptly pay the Earnest Money to the Seller as liquidated damages, and
thereafter this Agreement shall be void and of no further effect except for the Surviving
Covenants.
(b) If the Seller defaults in the performance of any of its obligations under this
Agreement, (including the Seller’s obligation to close), the Buyer may elect, as its
exclusive remedies, to (i) terminate this Agreement by written notice to the Seller and the
Title Company, and, upon such termination, the Title Company shall promptly refund the
Earnest Money to the Buyer, and thereafter this Agreement shall be void and of no
further effect except for the Surviving Covenants, or (ii) seek specific performance of this
Agreement, provided that no such action for specific performance shall be commenced
more than 180 days after the date on which the Seller defaults.
15. Prior to Closing. During the period from the Effective Date to the Closing Date:
(a) The Seller will continue to maintain such amounts, levels and deductibles
for insurance on the Real Property that it maintains on the Effective Date.
(b) The Seller will not (i) subject the Real Property to any new liabilities,
financial or otherwise, (ii) solicit or respond to offers from other buyers for all or any part
of the Real Property, engage in negotiations with others for the sale of all or any part of
the Real Property, or agree to sell, assign or transfer all or any part of the Real Property to
any other person or entity, or (iii) enter into any new contract or lease affecting the Real
Property, without first obtaining the Buyer’s written consent.
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16. Title Company as Escrow Agent. The Title Company shall hold, invest and
disburse the Earnest Money as provided in this Agreement. If there is any dispute as to whether
the Title Company is obligated to deliver the Earnest Money, or as to whom the Earnest Money
is to be delivered, the Title Company may refuse to make delivery and may continue to hold the
Earnest Money until receipt by the Title Company of an authorization, in writing, signed by each
of the parties hereto, directing the disposition of the Earnest Money; in the absence of such
written authorization, the Title Company may hold the Earnest Money until a final determination
of the rights of the parties by appropriate proceeding or may bring an appropriate action or
proceeding for leave to deposit the Earnest Money in a court of competent jurisdiction pending
such determination. The parties hereto recognize that the Title Company’s duties under this
Agreement are purely administerial in nature; and said parties therefore agree that the Title
Company shall, so long as it acts in good faith and in accordance with this Agreement, have no
liability to either party, except for the Title Company’s willful misconduct or gross negligence.
The parties hereto further indemnify the Title Company against, and agree to hold, save and
defend the Title Company harmless from, any costs, liabilities and expenses incurred by the Title
Company in discharging its duties under this Agreement, except for willful misconduct or gross
negligence. The Title Company is an intended third-party beneficiary of this Section 16 of this
Agreement.
17. Entire Agreement; Enforcement. This Agreement constitutes the complete
agreement between the parties hereto and supersedes any previous oral or written agreements
between them regarding the Real Property, including but not limited to, the RFP. No waiver of
any of its terms or any verbal agreement will be effective unless in writing and signed by both
parties. This Agreement shall inure to the benefit of, and shall be binding upon, the parties and
their successors and assigns. This Agreement shall be construed according to the laws of the
State of Minnesota, and the State District Court in Dakota County shall have exclusive
jurisdiction to resolve any disputes regarding the intent, meaning or enforcement of this
Agreement. Any provision of this Agreement which is void or unenforceable may be severed
from the remaining provisions, without affecting the enforceability of the remaining provisions.
This Agreement may not be amended except by a written agreement executed by the party to be
charged with the amendment.
18. Business Days. If any date in this Agreement for the performance of any
obligations by a party or for the delivery of any notice 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.
19. General. The Section and paragraph headings or captions appearing in this
Agreement are for convenience only, are not a part of this Agreement, and are not to be
considered in interpreting this Agreement. This Agreement binds and benefits the Seller and the
Buyer and their respective successors and permitted assigns. This Agreement has been made
under, and will be interpreted and controlled by, the laws of the State of Minnesota. All Exhibits
referred to in and attached to this Agreement are incorporated in and made a part of this
Agreement. This Agreement may be executed in one or more counterparts, each of which shall
be deemed to be an original and together which shall constitute one and the same Agreement.
Delivery of an executed counterpart of a signature page of this Agreement by facsimile
transmission or electronic transmission (e.g., “pdf” or “tif”) shall be effective as delivery of an
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original executed counterpart of this Agreement. Upon request, a party shall deliver an original
executed counterpart of this Agreement to the other party.
20. Subsequent Requirements.
(a) Development Agreement. Before expiration of the Contingency Period,
the parties hereto agree to negotiate and execute a Development Agreement, which will
go into further detail on the construction parameters, financial securities, and land-use
approvals of the Project. The Buyer may create a separate but affiliated corporate entity
to enter into the Development Agreement.
(b) Homeowners’ Association. The parties hereto understand and
acknowledge the presence of a condominium homeowners’ association (Common-
Interest-Community No. 464), located at Lots 1 and 2, Block 4, and Lots 1, 2 and 3,
Block 5, Mendota Heights Town Center, Dakota County, Minnesota (the “HOA”). As a
part of the Development Agreement for the Project, the parties hereby agree to negotiate
in good faith for the Buyer to financially support the operations of the HOA.
[signatures on following page]
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Buyer and Seller have executed this Real Estate Purchase Agreement.
BUYER:
MH DEVELOPMENT LLC
By:
Judd Fenlon, Manager
SELLER:
CITY OF MENDOTA HEIGHTS, MINNESOTA
By:
Name: Neil Garlock
Its: Mayor
By:
Name: Lorri Smith
Its: City Clerk
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EXHIBIT A
LEGAL DESCRIPTION OF REAL PROPERTY
Lot 1, Block 2, Mendota Heights Town Center, Dakota County, Minnesota.
Lot 1, Block 3, Mendota Heights Town Center, Dakota County, Minnesota.
Lot 2, Block 3, Mendota Heights Town Center, Dakota County, Minnesota.
Outlot D, Mendota Heights Town Center, Dakota County, Minnesota.
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EXHIBIT B
FORM OF LIMITED WARRANTY DEED
LIMITED WARRANTY DEED
eCRV: ________________
Deed Tax: $__________ Date: ___________,
2019
FOR VALUABLE CONSIDERATION, the City of Mendota Heights, Minnesota, a municipal
corporation and political subdivision under the laws of the State of Minnesota (the “Grantor”),
conveys to MH Development LLC, a Minnesota limited liability company (the “Grantee”), real
property in Dakota County, Minnesota, legally described on the attached Exhibit A, together with
all hereditaments and appurtenances belonging thereto (the “Real Property”).
This Deed conveys after-acquired title. The Grantor warrants that it has not done or suffered
anything to encumber the Real Property except any Permitted Encumbrances described on the
attached Exhibit B.
The Grantor certifies that it does not know of any wells on the described real property.
Check here if part or all of the described real property is Registered (Torrens) □
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Grantor:
CITY OF MENDOTA HEIGHTS,
MINNESOTA
By: ________________________________
Neil Garlock
Its: Mayor
By: ________________________________
Lorri Smith
Its: City Clerk
STATE OF MINNESOTA
COUNTY OF DAKOTA
)
) ss.
)
This instrument was sworn to and subscribed before me on ________________, 2019, by
Neil Garlock, the Mayor, and Lorri Smith, the City Clerk, of the City of Mendota
Heights, Minnesota, a municipal corporation and political subdivision under the laws of
the State of Minnesota, on behalf of the political subdivision.
(Seal)
Notary Public
THIS INSTRUMENT DRAFTED BY:
Best & Flanagan LLP (AJP)
60 South Sixth Street, Suite 2700
Minneapolis, MN 55402
612.339.7121
Tax Statements for the real property
described in this instrument should be sent
to:
MH Development, LLC
c/o Grand Real Estate Advisors, LLC
90 Dale Street South
Saint Paul, Minnesota 55102
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EXHIBIT A TO LIMITED WARRANTY DEED
LEGAL DESCRIPTION OF REAL PROPERTY
Lot 1, Block 2, Mendota Heights Town Center, Dakota County, Minnesota.
Lot 1, Block 3, Mendota Heights Town Center, Dakota County, Minnesota.
Lot 2, Block 3, Mendota Heights Town Center, Dakota County, Minnesota.
Outlot D, Mendota Heights Town Center, Dakota County, Minnesota.
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EXHIBIT B TO LIMITED WARRANTY DEED
PERMITTED ENCUMBRANCES
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REQUEST FOR COUNCIL ACTION
DATE: August 20, 2019
TO: Mayor, City Council, and City Administrator
FROM: Ryan Ruzek, P.E., Public Works Director
SUBJECT: Resolutions 2019-60 Approve Plans and Authorize Advertisement for Bid for the
2019 Storm Sewer Improvements
COMMENT:
INTRODUCTION
The Council is asked to authorize staff to bid a storm sewer extension plan for several areas in
the city.
BACKGROUND
A number of storm sewer maintenance issues have been recently identified or have been ongoing
for several years. Flooding events in March highlighted some drainage issues and deficiencies.
DISCUSSION
The proposed plan will add catch basins in areas where the boulevard are lower than the street
resulting in land locked areas as well as excessive water from sump pump discharges that have
been creating problems and nuisances for both the public and city maintenance crews. A
summary of the improvements are:
• Add a manhole over an existing storm sewer pipe in William Court and extend a
beehive catch basin to the rear yard. There is a land locked area that caused flooding
in three yards. The city installed a 4” drain tile in 2007 that is no longer functional.
• Install a lateral catch basin on Mohican Court at Pueblo Lane for collection of sump
pump drainage.
• Install a storm sewer extension on Cheyenne Lane for collection of sump pump
drainage. This site has had major icing and roadway deterioration.
• Add a manhole over an existing storm sewer pipe in Field Stone Drive and extend a
beehive catch basin to the side yard of 2242/2246 Field Stone Drive. There is a land
locked area that caused flooding to the two properties.
• Install a storm sewer extension on Clement Street at the city trail that connects
Knollwood Lane. The city currently issues a sump pump discharge waiver to 1441
Clement Street. This property has an active sump pump that causes icing as well as
clear water discharges to the sanitary sewer.
• Install a beehive manhole in the front yard of 554/558 Junction Lane. There is a land
locked area behind the street. The properties adjacent to this installation both had
flooding issues this spring and into early summer.
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• Remove and replace 75 feet of trail along Victoria Curve. Storm water currently runs
down the trail and washes through private property. The trail grade will be raised to
keep storm water in the street.
• Extend Trail section at Friendly Hills tennis court.
BUDGET IMPACT
Staff identified $150,000 in storm sewer improvements to the Marie Avenue Project in 2019
which is currently being moved to 2020. The estimated cost for the 2019 Storm Improvements is
$128,000. The Storm Sewer Utility Fund has an adequate balance to complete these
improvements in 2019 as well as completing the Marie Avenue Improvements in 2020.
Mendota Heights policy requires any projects greater than $100,000 follow the competitive
bidding requirements.
RECOMMENDATION
Staff recommends that the Council authorize the advertisement for bids on the Storm Sewer
Improvement plan. The bid opening date for this project would be September 11, 2019, with an
award date of September 17, 2019. Staff would anticipate construction starting towards the end
of September with a completion before the end of October.
Plans are attached for reference. Full size plans are available in the the City’s Engineering
offices for review.
ACTION REQUIRED
Staff recommends that the City Council pass a motion adopting Resolution 2019-60, a resolution
“APPROVING PLANS AND AUTHORIZING THE ADVERTISEMENT OF BIDS FOR
THE 2019 STORM SEWER IMPROVEMENT PROJECT”.
This action requires a simple majority vote.
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CITY OF MENDOTA HEIGHTS
DAKOTA COUNTY, MINNESOTA
RESOLUTION 2019-60
A RESOLUTION APPROVING FINAL PLANS AND SPECIFICATIONS, AND
AUTHORIZING ADVERTISEMENT FOR BIDS FOR THE 2019 STORM SEWER
IMPROVEMENTS (PROJECT #201905)
WHEREAS, the Public Works Director reported that the proposed improvements and
construction thereof at eight locations throughout the City were feasible, desirable, necessary,
and cost effective, and further reported on the proposed costs of said improvements and
construction thereof; and
WHEREAS, the Public Works Director has prepared plans and specifications for said
improvements and have presented such plans and specifications to the City Council for approval.
NOW THEREFORE BE IT RESOLVED; by the Mendota Heights City Council as
follows:
1. That the plans and specifications for said improvements be and they are hereby in all
respects approved by the City.
2. That the Clerk with the aid and assistance of the Public Works Director be and is hereby,
authorized and directed to advertise for bids for said improvements all in accordance with
the applicable Minnesota Statutes, such as bids to be received at the City Hall of the City
of Mendota Heights by 10:00 A.M., Wednesday, September 11, 2019, and at which time
they will be publicly opened in the City Council Chambers of the City Hall by the Public
Works Director, will then be tabulated, and will then be considered by the City Council at
its next regular Council meeting.
Adopted by the City Council of the City of Mendota Heights this twentieth day of August 2019.
CITY COUNCIL
CITY OF MENDOTA HEIGHTS
Neil Garlock, Mayor
ATTEST
_________________________
Lorri Smith, City Clerk
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