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HomeMy WebLinkAboutCC - May 15, 2012v f 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763) 755 -8923 • WWW.ANDOVERMN.GOV Regular City Council Meeting — Tuesday, May 15, 2012 Call to Order — 7:00 p.m. Pledge of Allegiance Resident Forum Agenda Approval 1. Approval of Minutes (4/24/12 Workshop; 5/1/12 Regular; 5/1/12 Closed) Consent Items 2. Approve Payment of Claims — Finance 3. Update City Project 11 -10 /South Coon Creek Drive NW Reconstruction —Engineering 4. Approve Resolution Authorizing Execution of a Development Agreement /Arbor Oaks Senior Living, LLC — Planning 5. Approve Refuse /Recycler Hauler Licenses —Administration Discussion Items 6. Anoka County Sheriff's Office Monthly Report — Sheriff 7. Update from the Crooked Lake Area Association - Planning 8. Public Hearing/Vacation of Easement /Grey Oaks /1640 and 1678 - 155th Lane NW - Planning 9. Public Hearing/Vacation of Easement/Parkside at Andover Station 2nd Addition/ 1927,193 3,1943 140th Lane NW - Planning Staff Items 10. Schedule June EDA Meeting —Administration 11. Schedule June Workshop Meeting - Administration 12. Administrator's Report —Administration Mayor /Council Input Closed Session: Negotiations on PID 11- 32 -24 -32 -0001, 11- 32 -24 -31 -0001, & 11- 32 -24 -24 -0001. Negotiations on PID 29- 32 -24 -44 -0022 Adjournment NDOVE" y 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763) 755 -8923 • WWW.CI.AN DOVER. MN. US TO: Mayor and City Council CC: Jim Dickinson, City Administrator FROM: Michelle Hartner, Deputy City Clerk SUBJECT: Approval of Minutes DATE: May 15, 2012 INTRODUCTION The following minutes were provided by TimeSaver, reviewed by Administration and submitted for City Council approval: April 24, 2012 Workshop May 1, 2012 Regular May 1, 2012 Closed DISCUSSION The minutes are attached for your review. ACTION REQUIRED The City Council is requested to approve the above minutes. Respectfully submitted, Michelle Hartner Deputy City Clerk Attach: Minutes 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 ANDOVER CITY COUNCIL WORKSHOP MEETING — APRIL 24, 2012 MINUTES The Workshop Meeting of the Andover City Council was April 24, 2012, 6:03 p.m., at the Andover City Hall, 16 Minnesota. Councilmembers present: Councilmember absent: Also present: OPEN SPACE City Administrator Dickinsc property boundaries with th primarily in convenient accf fair market value. If access 1 estimated..-cost for a 1241 ot approximately $50,000 If fl 60 -acres could _take place to Council. If all of the proper would utilize the remaining Councilmember Bukkilaart Sheri Bukkila (6:0.8 Howard = None - City Administrator, UPDA ), Mike order by Mayor Mike Gamache, town Boulevard NW, Andover, , Dave Trude and Tony stated staff is continuing to negotiate a reasonable sale price and ,awrence family. Staff has communicated that the City's interest is across the parcel and -additional land could only be purchased at Hanson Boulevard could. obtained across the sod field the de. gravel road and base across the Lawrence property is cost and location issues can be resolved, purchase of an additional ►mlete the preservation area previously discussed with the were purchased at or near current market rates, this acquisition end referendum funds. 6:08 p.m. asked if any culverts would be involved in the acquisitions and City Administrator Dickinson stated there are culverts involved and there would be costs involved with this. He stated the City would continue discussions to obtain an easement for access. Councilmember Trude asked how much the Selmer property would cost the City. City Administrator Dickinson stated the Selmer property is anticipated to sell for the appraised value and this is anticipated to be valued as farmland, approximately $9,000 to $12,000 per acre. Andover City Council Workshop Meeting Minutes —April, 24 2012 Page 2 1 The majority of this property is high ground. 2 3 Councilmember Knight asked if the City would plow the access in the winter. 4 5 City Administrator Dickinson stated plowing the access in the winter months would be 6 dependant on the types of activities that occurred. If the property is enhanced with trails then the 7 road could be kept open but there would not be any groomed trails on the property for the public 8 to utilize. 9 10 Councilmember Knight asked how far the Selmer property is from Ward Lake Drive. 11 12 Councilmember Howard asked about the possibility of acquiring an easement for a parking lot 13 rather than a road. 14 15 City Administrator Dickinson stated the Selmer property is quite a distance from Ward Lake 16 Drive and he was not sure if the terrain would be suitable for a road. He explained the Open 17 Space Commission had broadened their list of properties under consideration to include sites 18 owned by Richard Aasness, Meadow Creek Christian Academy and the Dehn family as 19 alternatives in the event an agreement cannot be reached with the Lawrence family. The Dehn 20 family would be interested in a partnership with the City to restore the property to natural prairies 21 and this would be accomplished with an open space purchase agreement. He explained the 22 Meadow Creek property has 31 -acres available that could be used for activity fields. If the 23 property is reasonable then it may be something the City could consider for parkland rather than 24 open space. 25 26 Councilmember Trude stated if the Selmer property and the access the City is currently looking 27 at does not come to fruition then she would like to see the City look into potentially beginning a 28 process to purchase properties along the Coon Creek area. If the City were able to acquire a 29 portion of the property along the creek from those homeowners then the City could look at 30 having a trail along the creek. This is something that could be done over time as the properties 31 are sold. She suggested this could also be something for the City to consider if there were any 32 funds remaining if the Selmer property and access were acquired. 33 34 Mayor Gamache stated the Selmer property and access is the number one priority for the Open 35 Commission at this time. In the Coon Creek area the north side would be something that could 36 be looked into. The problem the City has had with this area is there have not been willing sellers. 37 38 Councilmember Trude stated having open space in the high population areas allows those 39 residents to have a respite and the ability to enjoy the outdoors. The acquisition of property in 40 this area would be a slower process because the City would only be able to potentially acquire 41 property as it becomes available. 42 43 City Administrator Dickinson clarified the direction from the Council at the last joint meeting Andover City Council Workshop Meeting Minutes —April, 24 2012 Page 3 1 was for the Open Space Commission and staff to continue to be aggressive with the Selmer 2 property and obtaining access for this property. 4 Mayor Gamache stated the City could consider having the residents vote on a new referendum in 5 the future to allow for purchases in the high- density areas. This is something the City could 6 consider in 2016. This would allow time for residents to enjoy the properties that have already 7 been purchased and decide if they would like to see more purchases. 8 9 Councilmember Trude stated she had heard from residents that once the funds from the Open 10 Space referendum are used up the residents would not support another referendum. 11 12 Councilmember Bukkila stated there is no land available to buy in the south side of the City but 13 she would like to see some open space in the future for these residents. She stated there is no 14 rush to make any purchases at this time. 15 16 Councilmember Knight asked if staff had looked at purchasing just the Selmer property and 17 waiting to purchase property for access. 18 19 City Administrator Dickinson stated this is something that could be considered. 20 21 Councilmember Trude stated the Shadowbrook Townhome Association had suggested the City 22 look into open space and a trail along the Coon Creek. 23 24 City Administrator Dickinson stated a trail may be possible in this area but it would depend on 25 the location of the property and if it is in the floodway. It may be possible to negotiate this type 26 of project when a plat is brought to the City. 27 28 Councilmember Trude stated if this was something that could potentially happen as part of the 29 platting process then she would support the Open Space Commission moving forward with the 30 Selmer property. This will provide open space in both the urban and rural areas of the City. 31 32 Councilmember Bukkila asked if the Open Space Commission considered the size of the 33 property and if there is a minimum that would be considered. She pointed out the south side of 34 the City did not have large amounts of land available like the north end. If the City wanted to 35 provide open space in the south side of the City then smaller parcels should be considered. 36 37 Open Space Commissioner Perry stated the Commission does consider property size and larger 38 parcels rank high in the matrix that was developed by the commission to detennine if a property 39 would be considered for purchase. 40 41 Councilmember Bukkila stated she would like to see less emphasis on parcel size. If the City 42 could acquire a two (2) to three (3) acre parcel in the south side of the City this would provide a 43 nice open space area for the high - density area. Andover City Council Workshop Meeting Minutes —April, 24 2012 Page 4 1 , Mayor Gamache stated the City has stated they are willing to look at parcels by willing sellers 2 and this is something that has worked for the City. 4 City Administrator Dickinson stated the City does need to be careful when acquiring portions of 5 smaller parcels, the City does not want to create non - conforming parcels by purchasing just 6 sections of property. 7 8 Councilmember Trude stated she supports the purchase of the Selmer property if there is access. 9 10 Councilmember Knight stated he supports the acquisition of the Selmer property and he would 11 like to see some money available for other parcels that may become available. 12 13 Councilmember Bukkila suggested the Open Space Commission move forward with the Selmer 14 property but she would recommend the Open Space Commission reevaluate the minimum size 15 parcel that would be considered in the future. 16 17 City Administrator Dickinson clarified the direction from the Council is to continue working on 18 the Selmer property and access and if this does not work out then the Council would like to have 19 the Open Space Commission discuss the philosophy and criteria used for evaluating additional 20 parcels. 21 22 JOINT MEETING WITHARTIFICIAL TURF TASK FORCE 23 24 Task Force Chair Ted Butler provided the Council with background information on the Artificial 25 Turf Task Force, the demographics of the local sports associations, and the need for additional 26 regulation size fields in the City for football, soccer, and lacrosse. 27 28 Councilmember Trude stated according to the City's census infonmation the number of 29 households in the City with children under 18 years old is 46.7% and there are over 7,000 30 children under 10 years old in the City. 31 32 Task Force Chair Butler stated the immediate need would be to respond to the need for outdoor 33 facilities. He explained the current number of fields is insufficient and organizations had to 34 travel to surrounding fields and if the fields were played on too much they became damaged. 35 Once the fields are damaged the risk for injury increases. He stated artificial turf could be used 36 more because you did not have to wait between uses and the annual maintenance costs would be 37 less than it would be for a natural grass facility. He stated the average cost per hour for a natural 38 grass facility would be $57.00 and the average hourly cost for an artificial turf facility would be 39 $82.00. An advantage for artificial turf would be the association's willingness to pay a 40 reasonable fee per hour. This fee could be applied toward a replacement fund for the turf and 41 debt service. 42 43 Councilmember Howard clarified the estimated construction cost for the natural grass facility Andover City Council Workshop Meeting Minutes — April, 24 2012 Page 5 1 included irrigation. 2 3 Task Force Chair Butler stated the installation of a well for irrigation and lights are included in 4 the estimated costs. 5 6 Councilmember Trade asked if the estimated hours of usage are high and if the cost of the land is 7 included in the estimated cost. 8 9 Task Force Chair Butler stated the estimated time of usage would not be considered high. 10 Artificial turf could be used more frequently because students could be on the fields as early as 11 3:00 p.m. for practices and adults could play later in the evenings. He stated the estimated costs 12 for the turf projects included lights and construction but land cost is not included. He stated the 13 association members of the Task Force have also discussed interest in and demand for an indoor 14 facility with artificial turf. The associations would like to see this type of facility centrally 15 located in the City, such as the City Hall campus or attached to the Community Center. Many 16 Andover families involved in youth sports travel to surrounding communities to use indoor 17 facilities. An indoor facility in Andover could reverse the flow of funds out of the city and help 18 improve the demand for restaurants and retail stores. 19 20 Councilmember Trade recommended the Hills of Bunker Lake Park as a potential location for a 21 turf facility because this is an area that is underutilized. 22 23 Task Force Chair Butler stated there is limited access to this facility and parking and lighting 24 would be problems in this location. He stated a facility located on the City Hall campus or at the 25 Community Center would take advantage of the parking and the lighting of the fields will not 26 disturb residents. He recommended the City consider building an artificial turf facility that had 27 the ability to be covered in the future. 28 29 Councilmember Bukkila stated the Artificial Turf Task Force did not do a frill review of the 30 City's park system to determine what was available and what type of facility could be added to 31 the existing parks. The City does need more game fields but the City should also look at the 32 entire park system. 33 34 Task Force Chair Butler stated a grass facility could be added to Fox Meadows Park but he 35 would recommend looking at artificial turf because this would provide more field time for the 36 investment because it could be used more. 37 38 Councilmember Trade stated staff could talk with the school district as well in regard to their 39 property and potential for utilizing some of their property for additional field needs. Andover 40 Elementary has 40 -acres and there may be some available space. 41 42 City Administrator Dickinson stated staff could discuss this with the school. 43 Andover City Council Workshop Meeting Minutes —April, 24 2012 Page 6 1 Councilmember Howard pointed out the main problem is not the space for more fields but the 2 need for having more facilities for the youth programs to use. Even with the addition of an 3 artificial turf facility there would be a shortage of fields. 4 5 Councilmember Knight stated during the discussion on potential open space purchase the 6 Meadow Creek property was identified as a potential site that could be used for fields. 7 8 Mr. Haas stated the City could install a natural grass facility at Fox Meadows Park and there 9 would be no additional land costs involved with that project, parking is already there. 10 11 Task Force Chair Butler stated input from the Council on what the Task Force should pursue and 12 what would be realistic for the City is required in order for the Task Force to proceed. 13 14 Councilmember Bukkila stated she would like to see projected usage, expected scheduling and 15 potential costs for a natural grass field versus an artificial turf field. She would like to see if the 16 potential revenue from an artificial turf facility would be enough to offset the additional costs. 17 18 Councilmember Knight asked if there would be a fee for using an outdoor artificial turf facility. 19 20 Task Force Chair Butler stated the sports associations have stated they would be willing to pay a 21 fee for artificial turf but not for a grass facility. 22 23 Councilmember Howard asked if an artificial turf facility would be open to the public. 24 25 Task Force Chair Butler stated if an artificial turf facility is constructed this would not be 26 considered a regular park and it would not be open to public use. The Community Center has the 27 ability to manage scheduling and invoicing for the facility. 28 29 Councilmember Knight stated from a practical point of view, a single campus would make more 30 sense because everything would be in one location. 31 32 Mayor Gamache stated he lilted the City Hall campus location. 33 34 City Administrator Dickinson stated charging for artificial turf use could be a point of contention 35 for residents and associations and asked the Council if there was support of charging a fee for the 36 use. 37 38 Mayor Gainache stated charging a fee for the use of an artificial turf facility would be acceptable. 39 This type of facility would be considered something more than a standard field and the sports 40 associations would be the ones using it. 41 42 Councilmember Trude asked the sports associations representatives would be open to paying a 43 rental fee and if parents would accept this. Andover City Council Workshop Meeting Minutes —April, 24 2012 Page 7 1 The North Metro Soccer Association Representative, Sean Beggin explained their fees already 2 include rental fees because they need to pay these fees to other facilities. They would not have to 3 increase their current fees. 4 5 Andover Football and Lacrosse Association Representative, Twilla Hauck stated they would be 6 able to pay a small fee of $30 to $50 per hour for an artificial turf facility. 7 8 Task Force Chair Butler stated lacrosse would like to see an indoor facility built, football and 9 soccer would also like to see a turf facility as well as additional fields. He recommended if the 10 Council considers building an artificial turf facility it should be constructed in a manner that 11 physically allows it to be covered with a dome structure in the future. 12 13 It was the consensus of the Council that to charge a rental fee to associations for use if an 14 artificial turf facility is constructed would be ok. 15 16 Mayor Gamache asked how many fields are needed in the City at this time and how would the 17 construction of an artificial turf facility impact this need. 18 19 Councilmember Bukkila stated the Task Force had not been able to determine how many fields 20 were needed to meet the youth associations' needs. Artificial turf can be used 7 days a week and 21 this would be equivalent to two (2) natural grass fields. 22 23 City Administrator Dickinson stated the actual shortage in terms of hours should be determined 24 prior to the discussions regarding location. 25 26 Task Force Chair Butler suggested the City consider constructing an artificial turf facility first 27 and if there are additional needs then a natural grass field can be constructed at Fox Meadows 28 Park. If there are additional needs in the future then the City can look at other parks in the City. 29 30 Mayor Gamache asked if the Task Force had discussed having residents vote on a park bond 31 referendum. This would provide the needed fiends for the City to purchase land if needed and to 32 construct the facility without trying to determine where the Council will need to make changes in 33 the budget for this project. It would also allow the sports associations the opportunity to get their 34 members to support the project. If the project is included in the City's CIP there is a chance that 35 the project would be pushed to a future date if the funds are needed for other projects. A park 36 bond referendum could be specific to this project and the fiends would be used for this project 37 only. 38 39 Mayor Gamache stated staff will need to research what to charge for a rental fee if an artificial 40 turf facility is constructed. He stated he does like the idea of constructing something on the City 41 Hall campus or at the Community Center. The park bond referendum is something that could be 42 researched and discussed at a later date. 43 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 Andover City Council Workshop Meeting Minutes — April, 24 2012 Page 8 Councilmember Trude stated she would support directing staff to research the bond referendum issue and have the Park Commission review it. City Administrator Dickinson stated notification of the park bond referendum vote to the County would need to take place by August. Councilmember Bukkila stated the financial information regarding the costs and the impact on the needs of the associations should be provided to the Council prior to the Council making a final determination on what type of facility should be pursued. Councilmember Howard suggested the current field usage and shortages along with the exact needs for each sports association should be provided as well. The Council recessed at 8:10 p.m. The Council reconvened at 8:19 p.m. 2012 GENERAL FUND BUDGET PROGRESS REPORT City Administrator Dickinson stated the concessions have not been doing well at Andover Station North. Recreational Facilities Manager, Erick Sutherland stated at Andover Station the concession deposits have not been sufficient to justify keeping the facility open during the week. He suggested the concession stand only open for tournaments only at this location. If this occurs then the bathroom facilities would not be available during the week Councilmember Trude stated the bathrooms should be available for residents to use. The sports associations could take responsibility for opening and locking the facility. City Engineer Berkowitz stated there is a portable facility available at the site. The problem with having one of the associations open the facility would be they are not available to watch the facility while it is open and they may not lock up at the end of the day. Councilmember Bukkila stated residents use portable facilities in Coon Rapids. Mayor Gainache stated the association presidents had access to the facilities and could be responsible for opening and closing the building. This way residents could use the restrooims. He suggested staff talk to the associations in regard to opening and closing the buildings so that the alarms are not set off. It was the Consensus of the Council to have concessions available at Andover Station North during tournaments and other high traffic events but keeping the bathroom facilities available to Andover City Council Workshop Meeting Minutes — April, 24 2012 Page 9 1 the public. 2 3 Councilmember Howard asked if pop machines or Gatorade machines could be put in the 4 building. 5 6 Mr. Sutherland stated the sports associations may approach the City about selling concessions 7 during the week but he would not recommend this. Problems may arise with inventory and 8 ownership of products kept at the facility if there are multiple concession providers. 9 10 Councilmember Trade suggested someone talk to the associations about utilizing the fields in 11 this location. She suggested Mr. Sutherland use his judgment to determine what events the 12 concessions will be available for. 13 14 DISCUSS DEFERRED ASSESSMENT TERMS MODIFICA TION REQ VEST 15 16 City Administrator Dickinson stated as part of the Woodland Crossings, Cardinal Ridge, and 17 Shaw's Glen developments, public improvement assessments in 2007, neighboring properties 18 that were not part of the initial development but has the potential for future urban development 19 were also assessed. Those neighboring properties assessments were allowed to be deferred with 20 specific terms. One of those property owners is requesting the Council consider modifying the 21 terms of the current deferral. He is requesting that in the event no development occurs on his 22 parcel by September 4, 2017, the deferral remains a deferral and does not come due at that time 23 and the deferral be extended to 15 years and at that time the deferral be depreciated in equal 24 amounts over the next 10 years at which point the deferred assessment would expire. 25 Historically, the City has not let deferred water and sewer assessments expire but has exercised 26 various options to collect. He recommended the City consider some modifications to the road 27 cost portion of the assessment similar to what the property owner is requesting but he would not 28 recommend this for the water and sewer portion of the assessment. He explained the street 29 portion of the assessment would be attached to the property and if not developed in 15 years then 30 the amount would start to depreciate over the next 10 years. After 25 years the street portion of 31 the assessment would have nothing due if the property had not been developed or sold. The City 32 has done similar deferred assessments in other areas of the City. The water and sewer 33 assessments should remain deferred. 34 35 City Engineer Berkowitz stated he did not believe the property owner had petitioned to have 36 sewer and water hook up. He stated he would check into this for the Council. He stated as the 37 property is developed and hooked up to City services there would be an assessment. 38 39 Councilmember Bukkila clarified the City had the stubs installed with the project so as the 40 property developed there was the ability to hook up to City services. 41 42 City Administrator Dickinson stated an option for the City utility service portions of the 43 assessment would be to cap the amount in 2017. The interest would accumulate until 2017 as Andover City Council Workshop Meeting Minutes — April, 24 2012 Page 10 1 scheduled and then at that time the amount would remain the same until the property is 2 developed. The City Attorney could work this out with the property owner if the Council would 3 like to move in this direction. 4 5 Councilmember Trude stated she would support this. She stated she would like to know if the 6 property owner had petitioned for the hook ups. The City Attorney will need to look into this 7 and determine if this is something the City can do. The City needs to be consistent for all 8 residents in similar situations. 9 10 City Engineer Berkowitz stated there is past precedent for the City to do work with developers 11 with similar assessments. 12 13 City Administrator Dickinson stated the Council could give direction to the City Attorney to 14 determine if there was something that could be done without setting precedent. 15 16 Councilmember Bukkila stated she would agree with delaying the assessment as long as it is fair 17 and reasonable. 18 19 City Administrator Dickinson clarified the City would consider extending the assessment on the 20 street repairs to 15 years and then allow it to depreciate over the next 10 years and then allow the 21 water and sewer assessment accrue interest until 2017 and then remain at that rate until the 22 property is developed. 23 24 Councilmember Trude stated the City should also look at what the property owner had presented 25 to the City because they do not want to do something inconsistent with what was agreed to at that 26 time. 27 28 City Administrator Dickinson stated staff would research the request and determine if a petition 29 had been filed and forward the information to the City Attorney. 30 31 2013 BUDGET DEVELOPMENT DISCUSSION 32 33 City Administrator Dickinson stated staff is starting to focus on the 2013 Annual Operating 34 Budget development process. Preliminary Anoka County Assessor taxable market value figures 35 for the City of Andover are reflecting a 3.6% decrease in total taxable market value. Tax 36 Increment Financing District 1 -1 will be decertifying at the end of 2012, complete impacts are 37 still being evaluated, and it is likely the State of Minnesota will place levy limits on cities for 38 2013 levies. If there is no tax bill then levy limits would not go into effect. The Open Space 39 Commission and staff have been active in pursuing the third open space purchase. With property 40 tax revenues snaking up 80% of the total General Fund revenues cash flow designations 41 approaching 50% would be appropriate and are recommended by the City's auditor. The City 42 Vehicle Purchasing Committee will be meeting on Thursday to perform an analysis and make 43 recommendations to the Council as part of the 2013 -2017 Capital Improvement Plan 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 Andover City Council Workshop Meeting Minutes — April, 24 2012 Page 11 development. A truck purchase would be a good item for bonding. He stated a few staffing requests are expected for the 2013 budget. Administration and Human Resources will be exploring a PTO conversion program as part of the 2013 budget process as well. Councilmember Knight suggested increasing the amount the City contributes to Alexandra House. City Administrator Dickinson stated Alexandra House has submitted a proposal and request for this year. He stated he would make arrangements for Alexandra House to make a presentation to the Council. Councilmember Howard stated charitable gambling is expected to increase this year as well. City Administrator Dickinson reviewed the fund balance and provided an update for the Council. Based on information available at this time it is expected the fund balance will increase and this could be used to pay for additional staff or to bring back or enhance services. Councilmember Trude stated this increase could also be used to do projects the City has put off doing due to the economy. This may provide an opportunity for the City to catch up on some of these projects. She stated she would also like to see the City look into bringing back the Employee Appreciation program. Councilmember Knight stated he would support this. City Administrator Dickinson stated these items would be discussed in greater detail at the May workshop. 2012 GENERAL FUND BUDGET PROGRESS DISCUSSION (CONTINUED) City Administrator Dickinson stated monthly review of the City Budget progress to the governing body is a recommended financial practice and often viewed positively by rating agencies. Councilmember Trude stated she would like to have the budget items for youth programs identified as a line item on the summary report. MARCH 2012 INVESTMENT REPORT City Administrator Dickinson provided a summary of the City's Investment portfolio. He stated the City of Andover Investment Policy recommends the Finance Director present to the City Council quarterly the detail listing of investments held by the City. Andover City Council Workshop Meeting Minutes —April, 24 2012 Page 12 1 OTHER TOPICS 2 3 City Engineer Berkowitz stated he had done some research and was able to locate the petition 4 received in December 2005 for the Woodland Crossings, Cardinal Ridge, and Shaw's Glen 5 developments. It was noted that not all of the benefiting properties had petitioned. The 6 properties that did not petition for the improvements were Puttman, Allen, and Almeida. 7 8 City Administrator Dickinson stated he would forward this inforination to the City Attorney. 9 10 Councilmember Knight stated the Community Center Advisory Commission has looked at 11 potentially adding a Teen Center and he would like to know if this was moving forward. 12 13 City Administrator Dickinson stated this topic would be coining to the Council for additional 14 consideration and discussions throughout the budget development process. 15 16 Councilmember Trude requested staff organize a community bus tour before the end of the 17 summer. She stated she would also like to see a workshop agenda that includes the County 18 Highway Department. Councilmember Trude stated the Council would like to have an 19 opportunity to discuss the roads in the City and to look at potential grants. She stated she would 20 also like to have the Sheriff's Department and Safety Investigator present at a Council workshop. 21 22 ADJOURNMENT 23 24 Motion by Councilmember Howard, Seconded by Councilmember Bukkila, to Adjourn the April 25 24, 2012 City Council Workshop. The motion carried unanimously. 26 27 The meeting adjourned at 9:43 p.m. 28 29 Respectfully submitted, 30 31 Tina Borg, Recording Secretary 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 REGULAR ANDOVER CITY COUNCIL MEETING — MAY 1, 2012 MINUTES The Regular Bi- Monthly Meeting of the Andover City C Gamache, May 1, 2012, 7:05 p.m., at the Andover Ci Andover, Minnesota. Councilmembers present: Councilmember absent: Also present: PLEDGE OFALLE RESIDENT FOR Mr. Nathan Mike Knight, Shen None City Administrator, - Community Develoj City Attorney, Scott as called to order by Mayor Mike 1685 Crosstown Boulevard NW, Julie Trude; and Tony Howard , Dave Car 140"` Lane,NW Andover, stated he was there on behalf of -_v - -_ he potential of a_Wal Mart being constructed on the former Pov's are this is a pnvate sale between the property owner and Wal- for this type of business but he would like the City to consider it into the community and the neighborhood. There are concerns f, and 24 -h66r lighting. He stated another concern residents have Boris allow overnight parking for campers and trailers and he ermitted use on the property. He also expressed concerns about 3e to sell liquor. There are enough liquor licenses in the City and Ms. Josephine Larson, 13527 Heather Street, Andover, stated concerns about the potential impacts to Crooked Lake. She would like to be sure the City involves the appropriate watersheds and the DNR so storm water is properly treated. Mayor Gammache stated Coon Creek Watershed would be involved in the project. As part of the current regulations, Wal -Mart will need to properly treat all storm water runoff. He stated the points brought forward would be discussed with the Wal -Mart developer during the process. Councilmember Trude pointed out there are other government agencies involved in this project the residents could talk to as well to ensure all their concerns are brought forward. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 Regular Andover City Council Meeting Minutes —May 1, 2012 Page 2 AGENDA APPROVAL Mayor Gamache stated there was additional information included for Item 4 on the Consent Items. City Administrator Dickinson noted the bid awarded as part of this project is considerably less than the engineer's estimate. He also stated Item 14 would be removed from the agenda at this time. Motion by Councilmember Bukkila, Seconded by Councilmember Knight, to approve the Agenda as amended. Motion carried unanimously. APPROVAL OF MINUTES April 12, 2012 Board of Review Meeting Motion by Councilmember Trude, Seconded by Councilmember Howard, to approve the April 12, 2012 Board of Review Meeting minutes as presented. The motion carried unanimously. April 17, 2012 Regular City Council Meeting Motion by Councilmember Trude, Seconded by Councilmember Bukkila, to approve the April 17, 2012, Regular City Council Meeting minutes as presented. The motion carried unanimously. CONSENT ITEMS Item 2 Approve Payment of Claims. Item 3 Award Bid /11- 43/140th Lane NW Water Main Improvements. (See Resolution R043-12) Item 4 Award Bid /11- 40/133rd Avenue NW Reconstruction. (See Resolution R049 -12) Item 5 Accept Feasibility Report/Order Public Hearing/11- 47/174'h Avenue NW, Heather Street NW and 173rd Lane NW. (See Resolution R044 -12) Item 6 Approve Feasibility Report /Waive Public Hearing/11 -10 /South Coon Creek Drive NW Reconstruction/WM Improvements. (See Resolution R045 -12) Item 7 Approve Easements /11 -10 /South Coon Creek Drive NW Reconstruction. Item 8 Approve No Parking Resolution/I0 -27 /Bunker Lake Boulevard NW (7th Avenue NW to 38'11 Avenue). (See Resolution R046 -12) Item 9 Consider Approval /Extension of Liquor License /Outdoor Event /Beef O' Brady's. Item 10 Consider Approval /Extension of Liquor License for New Addition and Patio Area/Beef O' Brady's. Item 11 Approve Temporary 3.2% Malt Liquor License /Andover Lions /Fun Fest. Motion by Councilmember Trude, Seconded by Councilmember Howard, for approval of the 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 Regular Andover City Council Meeting Minutes — May 1, 2012 Page 3 Consent Agenda as presented. Motion carried unanimously. PUBLIC HEARING: MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO 1 AND THE ESTABLISHMENT OF TAX INCREMENT FINANCING DISTRICT 1 -5, ADOPT RESOLUTION APPROVING PROGRAM MODIFICATION AND TIF PLAN Community Development Director Carlberg stated the City Council is requested to consider the modification to the Development Program for Development District No. 1 and the establishment of Tax Increment Financing District No. 1 -5. TIF District 1 -5 is being created for the development of a 70 unit senior housing project to be known as Arbor Oaks located on the southwest corner of Hanson Boulevard NW and 155a' Lane NW. TIF District 1 -5 is a Housing District and through its creation will insure an affordable housing component throughout the life of the district for 20% of the units. Motion by Councilmember Bukkila, Seconded by Councilmember Knight to open the public hearing. The motion carried unanimously. Mayor Gamache opened the public hearing at 7:14 p.m. Motion by Councilmember Knight, Seconded by Councilmember Bukkila to close the public hearing. The motion carried unanimously. Mayor Gamache closed the public hearing at 7:15 p.m. Motion by Councilmember Trade, Seconded by Councilmember Howard to approve the resolution adopting a modification to the Development Program for Development District No. 1 and establishing Tax Increment Financing District No. 1 -5 therein and adopting a Tax Increment Financing Plan therefore. The motion carried unanimously. (See Resolution R047 -12) APPROVE RESOULTION FOR INTERFUND LOAN IN CONNECTION WITH TIF DISTRICT NO. 1 -5 Community Development Director Carlberg stated the City Council is requested to review and approve an internal loan for Tax Increment Financing District No. 1 -5. The resolution approves a $25,000 internal loan and this is recommended by the City's Fiscal Advisor, Ehlers and Associates, to comply with the State Auditor requirements for newly created TIF districts that may expend dollars before the tax increment is generated from the district and received. Motion by Councilmember Bukkila, Seconded by Councilmember Howard to approve a resolution authorizing an interfund loan for advance of certain costs in connection with Tax Increment Financing District No. 1 -5. The motion carried unanimously. (See Resolution R048- 12) Regular Andover City Council Meeting Minutes —May 1, 2012 Page 4 1 2011 A UDIT PRESENTATION/HLB TA UTGES REDPATH 2 3 City Administrator Dickinson stated the City is required to have an independent audit conducted 4 annually. The 2011 Audit was conducted by the City's audit firm, HLB Tautges Redpath. 6 Ms. Peggy Moeller, CPA, HLB Tautges Redpath, provided the Council with a presentation 7 related to the City of Andover Comprehensive Annual Financial Report (CAFR) as of December 8 31, 2011, the Audit Management Letter, the Report on Internal Controls, the State Legal 9 Compliance Report, the Communication with those Charged with Governance and the 10 corresponding Management Report. She stated the City had received the 2010 GFOA Certificate 11 of Achievement for Excellence in Financial Reporting and would be applying for 2011. The City 12 of Andover has received a "clean opinion" on the 2011 financial statements. 13 14 Mayor Gamache thanked staff for their work in completing the financial statements and their 15 work during the audit process. 16 17 Councilmember Trade stated Andover had been able to increase their fund balance in 2011. She 18 asked if this was uncommon for cities in the current economic conditions. 19 20 Ms. Moeller stated most cities are careful to maintain adequate fund balances and because of this 21 most are seeing increases in their fund balances this year. 22 23 Councilmember Knight commended City Administrator Dickinson and the Finance Department 24 staff for their hard work and making it possible for the City to be in their current financial 25 position. 26 27 City Administrator Dickinson stated the Finance Department staff is excellent and they have 28 done a great job, recognition should go to Lee Brezinka, Melissa Knutson and Brenda Fildes. He 29 stated the City's financial information is available on the website. 30 31 Motion by Councilmember Knight, Seconded by Councilmember Bukkila to accept the City of 32 Andover 2011 Audit Review and Presentation. The motion carried unanimously. 33 34 SCHEDULE MAYEDA MEETING 35 36 Motion Councilmember Trade, Seconded by Councilmember Bukkila to schedule an EDA Meeting 37 at 6:00 p.m. before the May 15, 2012 City Council Meeting. The motion carried unanimously. 38 39 ADMINISTRATOR'S REPORT 40 41 City Administrator Dickinson updated the City Council and the residents regarding 42 administration and city department activities, development and CIP projects, and upcoming 43 meetings and community events including an update on the Trident Development, the Wal -Mart Regular Andover City Council Meeting Minutes — May 1, 2012 Page 5 1 proposal, and the Parkside at Andover Station platting activities. He stated the Connect Anoka 2 County Broadband Governance group are still focusing on predicting the usage needs and 3 encouraging those participating to collaborate on systems that could be shared and collaborative 4 data storage solutions. He had participated in the North Metro Mayor Association Joint Purchase 5 Agreement bids for ammunition. 6 7 Community Development Director Carlberg stated the contract company for Wal -Mart would be 8 holding an open house style meeting at the end of May. Once the date and location information is 9 available the City will post this information on the website. Woodland Estates 5th Addition is 10 moving forward. There are five (5) lots already sold in this project. Parkside at Andover Station 11 is moving forward with the creating of two (2) parcels and the replatting of 33 more lots. 12 13 Mayor Gamache stated residents had brought up concerns about Wal -Mart in the Resident 14 Forum. He stated lighting and runoff are concerns for residents. He requested these issues be 15 reviewed to make sure they are addressed properly. 16 17 Community Development Carlberg stated the project would need to meet all State, County and 18 City regulations in regard to runoff, traffic, and lighting. 19 20 Mayor Gamache stated residents had brought up concerns about overnight parking for campers 21 being allowed by Wal -Mart. There are currently no businesses in Andover that allow this. He 22 asked if there were other 24 -hour business in Andover. 23 24 Community Development Director Carlberg stated McDonalds and Kwik Trip are 24 -hour 25 businesses but they do not permit overnight camper parking. 26 27 Councilmember Knight asked if Andover had any ordinances for restricting camper parking. 28 29 City Administrator Dickinson stated there are some cities that do not allow Wal -Mart to have 30 overnight camper parking. He stated based on the proposed location of this Wal -Mart it is not 31 likely to have much overnight camper parking because it is not located along a major highway. 32 33 Mayor Gamache requested staff look into this to detennine if there is something the City could 34 do to limit or restrict overnight camper parking. 35 36 Councilmember Trade expressed concerns with the potential for overnight camper parking and 37 Wal -Mart being able to sell liquor. She does not want to encourage drinking in the parking lot. 38 39 Community Development Director Carlberg stated there are other businesses in the area that are 40 open either 24 -hours or until 2:00 a.m. The City cannot impose restrictions without legal basis. 41 42 Councilmember Bukkila stated Wal -Mart was replacing Pov's and the City had experienced 43 several problems with this business. Wal -Mart will not present these challenges. She suggested 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 Regular Andover City Council Meeting Minutes — May 1, 2012 Page 6 the City review what is being proposed and address the concerns that are not already addressed by the current review process. MAYOR/COUNCIL INPUT ( Hawkridge Park) Mayor Gamache stated the Hawkridge Park opening and soccer kickoff had been last week. The fields look really good. He thanked Federal Cartridge for their donation of the bleachers and North Metro Soccer for their generous donation. He suggested staff look at ways to keep people from parking on the grass. Councilmember Knight commended the Parks Department for their hard work on the Hawkridge Park project. (Quad Cities TVBoard Opening) Councilmember Trude stated the Quad Cities TV Board is advertising for an Executive Director position. This information will be available on the City's website. (Recycling Day) Councilmember Howard thanked City staff for a successful Recycling Day. (County Redistricting) Mayor Gamache stated the County Commissioners had approved the new County Commissioner Districts and this will be posted on their website. Andover will have a different commissioner representing residents on the west side after the next election. Mayor Gamache recessed the regular City Council meeting at 7:49 p.m. to a closed session of the City Council to discuss property acquisition negotiations for PID #29- 32 -24 -44 -0022, PID #17- 32 -24 -13 -0003, and PID #17- 32 -24 -12 -0007. The City Council reconvened at 8:08 p.m. ADJOURNMENT Motion by Councilmember Bukkila, Seconded by Councilmember Knight, to adjourn. Motion carried unanimously. The meeting adjourned at 8:09 p.m. Respectfully submitted, Tina Borg, Recording Secretary 1 Regular Andover City Council Meeting Minutes —May 1, 2012 Page 7 REGULAR ANDOVER CITY COUNCIL MEETING MINUTES — MAY 1, 2012 TABLE OF CONTENTS PLEDGEOF ALLEGIANCE .......................................................................... ............................... 1 RESIDENTFORUM ....................................................................................... ............................... 1 AGENDAAPPROVAL ................................................................................... ............................... 2 APPROVALOF MINUTES ............................................................................ ............................... 2 CONSENTITEMS .......................................................................................... ............................... 2 Item 2 Approve Payment of Claims .......................................................... ............................... 2 Item 3 Award Bid /l 1- 43/140th Lane NW Water Main Improvements (See Resolution R043- 12) ........................................................................................................ ............................... 2 Item 4 Award Bid/11- 40/133'd Avenue NW Reconstruction (See Resolution R049- 12) ........ 2 Item 5 Accept Feasibility Report /Order Public Hearing/11- 47/174th Avenue NW, Heather Street NW and 173rd Lane NW (See Resolution R044- 12) ................. ............................... 2 Item 6 Approve Feasibility Report/Waive Public Hearing/11 -10 /South Coon Creek Drive NW Reconstruction/WM Improvements (See Resolution R045- 12) .. ............................... 2 Item 7 Approve Easements /11 -10 /South Coon Creek Drive NW Reconstruction .................. 2 Item 8 Approve No Parking Resolution/10 -27 /Bunker Lake Boulevard NW (7t" Avenue NW to 38t" Avenue) (See Resolution R046- 12) .......................................... ............................... 2 Item 9 Consider Approval Outdoor Event /Extension of Liquor License /Beef O' Brady's..... 2 Item 10 Consider Approval /Extension of Liquor License for New Addition and Patio Area /Beef O' Brady' s ........................................................................... ............................... 2 Item 11 Approve Temporary 3.2% Malt Liquor License /Andover Lions /Fun Fest ................... 2 PUBLIC HEARING: MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1 AND THE ESTABLISHMENT OF TAX INCREMENT FINANCING DISTRICT NO. 1 -5, ADOPT RESOLUTION APPROVING PROGRAM MODIFICATION AND TIF PLAN (See Resolution R047 -12) ................. ............................... 3 APPROVE RESOULTION FOR INTERFUND LOAN IN CONNECTION WITH TIF DISTRICT NO. 1 -5 (See Resolution R048 -12) .......................................... ............................... 3 2011 AUDIT PRESENTATION /HLB TAUTGES REDPATH ...................... ............................... 4 SCHEDULE MAY EDA MEETING .............................................................. ............................... 4 ADMINISTRATOR'S REPORT ..................................................................... ............................... 4 MAYOR/COUNCIL INPUT ........................................................................... ............................... 6 (Hawkridge Park) ......................................................................................... ............................... 6 (Quad Cities TV Board Opening) ................................................................ ..:............................ 6 (Recycling Day) ........................................................................................... ............................... 6 (County Redistricting) .................................................................................. ............................... 6 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763) 755 -8923 • WWW.CI.ANDOVER.MN.US TO: Mayor and Councihmembers CC: Jim Dickinson, City Administrator / Finance FROM: Lee Brezinka, Assistant Finance Director SUBJECT: Payment of Claims DATE: May 15, 2012 INTRODUCTION Attached are disbursement edit lists for claims related to the on going business of the City of Andover. TITCC .T TCQTC)M Claims totaling $243,377.38 on disbursement edit list #1- 3 from 05/02/12 — 05/11/12 have been issued and released. Claims totaling $823,511.23 on disbursement edit list #4 dated 05/15/12 will be issued and released upon approval. BUDGET IMPACT The edit lists consist of routine payments with expenses being charged to various department budgets and proj ects. ACTION REQUESTED The Andover City Council is requested to approve total claims in the amount of $1,066,888.61. Please note that Council Meeting minutes will be used as documented approval. 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O O i.r •U =1 0 U �O F-a 0 N cn nl 0 O 0 O 0 i O z CC1 W x U d � o N N U M coo n N U Lo N_ hl O O rri N N n n Lf) �n 0 0 O O � � 001) N �6 06 W o 7 N O 4. z cic V �n N 00 d M 0 U � v� 00 Cj i. Cj O � � O �o N N ro a I P. Cq N_ O N O 0 v: w 0 0 a x U o. r O U d N m � U U rri O UoF. o 7 N x 4. z d M 0 U � v� 00 Cj i. Cj O � � O �o N N ro a I P. Cq N_ O N O 0 v: w 0 0 a x U o. r O U d 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 . (763) 755 -5100 FAX (763) 755 -8923 • WWW.ANDOVERMN.GOV TO: Mayor and Council Members 7 - CC: Jim Dickinson, City Administrator FROM: David D. Berkowitz, Director of Public Works /City Engineer SUBJECT: Update City Project 11 -10 /South Coon Creek Drive NW Reconstruction - Engineering DATE: May 15, 2012 INTRODUCTION The bid opening for South Coon Creek Drive NW Reconstruction, Project 11 -10 is scheduled for May 17, 2012. The City Council is requested to make formal action to award the bid at the May 22, 2012 City Council Workshop. ACTION REQUIRED The City Council is requested to consider awarding a contract at the May 22, 2012 City Council Workshop based on bids that will be received May 17, 2012 for the South Coon Creek Drive NW Reconstruction project. Respectfully submitted, David D. Berkowitz 0 1685 CROSSTOWN BOULEVARD N.W. e ANDOVER, MINNESOTA 55304 e (763) 755 -5100 FAX (763) 755 -8923 e WWW.CI.ANDOVER.MN.US TO: Mayor and Council members Jim Dickinson, City Administrator FROM: David L. Carlberg, Community Development Director SUBJECT: Approve Resolution Authorizing the Execution of a Development Agreement with Arbor Oaks Senior Living, LLC DATE: May 15, 2012 INTRODUCTION The City Council is requested to approve the attached resolution authorizing the execution of a development agreement with Arbor Oaks Senior Living, LLC. DISCUSSION The Agreement coincides with the creation of TIF District 1 -5 and the development of the 70 unit senior housing project to be known as Arbor Oaks. The Agreement lays out the terms of providing assistance and the type of financing involved. The Agreement also serves as the construction agreement spelling out the process for the approval of the construction plans, defining the minimum improvements to be constructed, as well as the schedule for construction of the improvements. The agreement was pulled from the May 1, 2012 Council agenda to allow the developer's attorney additional review time. The attached agreement has minor changes which were discussed in principal at the May Pt EDA meeting. The City's fiscal advisor, Ehlers, Inc. and the City's bond and TIF counsel, Briggs and Morgan have reviewed and approved the changes to the agreement. ACTION REQUESTED Approve the attached resolution. Attachments Resolution Development Agreement EXTRACT OF MINUTES OF MEETING OF THE CITY COUNCIL OF THE CITY OF ANDOVER, MINNESOTA HELD: May 15, 2012 Pursuant to due call and notice thereof, a meeting of the City Council of the City of Andover, Anoka County, Minnesota, was duly called and held at the City Hall in said City on Tuesday, the 15th day of May, 2012, at 7:00 o'clock p.m. The following members were present: and the following were absent: Member adoption: introduced the following resolution and moved its RESOLUTION NO. RESOLUTION AUTHORIZING EXECUTION OF A DEVELOPMENT AGREEMENT A. WHEREAS, [Arbor Oaks Senior Living, LLC] (the "Developer ") has requested the City of Andover, Minnesota (the "City ") to assist with the financing of certain costs incurred in connection with the construction of an approximately 70 -unit senior rental housing development by the Developer (the "Project "). B. WHEREAS, the Developer and the City have detennined to enter into a Development Agreement providing for the City's tax increment financing assistance for the Project (the "Development Agreement "). NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Andover, Minnesota, as follows: 1. The City Council hereby approves the Development Agreement in substantially the form submitted, and the Mayor and City Administrator are hereby authorized and directed to execute the Development Agreement on behalf of the City. 2. The approval hereby given to the Development Agreement includes approval of such additional details therein as may be necessary and appropriate and such modifications thereof, deletions therefrom and additions thereto as may be necessary and appropriate and approved by the City officials authorized by this resolution to execute the Development Agreement. The execution of the Development Agreement by the appropriate officer or officers of the City shall be conclusive evidence of the approval of the Development Agreement in accordance with the terns hereof. 4613514v1 The motion for adoption of the foregoing resolution was duly seconded by member and, after full discussion thereof, and upon a vote being taken thereof, the following voted in favor thereof: and the following voted against salve: Adopted this 15th day of May, 2012. Attest: City Administrator 46135141 2 Mayor STATE OF MINNESOTA COUNTY OF ANOKA CITY OF ANDOVER I, the undersigned, being the duly qualified and acting Administrator of the City of Andover, Minnesota, DO HEREBY CERTIFY that I have carefully compared the attached and foregoing extract of minutes with the original minutes of a meeting of the City Council of the City held on the date therein indicated, which are on file and of record in my office, and the same is a full, true and complete transcript therefrom insofar as the same relates to a Resolution Authorizing Execution of a Development Agreement. WITNESS my hand as such Administrator of the City Council of the City of Andover, Minnesota this day of May, 2012. 3 46135141 City Administrator DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF ANDOVER, MINNESOTA AND ARBOR OAKS SENIOR LIVING, LLC This document drafted by: BRIGGS AND MORGAN Professional Association 2200 First National Bank Building St. Paul, Minnesota 55101 46098950 TABLE OF CONTENTS Page ARTICLE I DEFINITIONS .................................................................. ............................... 2 Section1.1 Definitions ............................................................. ............................... 2 ARTICLE II REPRESENTATIONS AND WARRANTIES ................. ............................... 4 Section 2.1 Representations and Warranties of the City .......... ............................... 4 Section 2.2 Representations and Warranties of the Developer ............................... 4 ARTICLE III UNDERTAKINGS BY DEVELOPER AND CITY ........ ............................... 6 Section 3.1 Project, Development Property, Site Improvements; Legal and Administrative Expenses ...................................... ............................... 6 Section 3.2 Reimbursement: TIF Note .................................... ............................... 6 Section 3.3 Compliance with Low and Moderate Income Requirements .............. 7 Section 3.4 Replacement Reserve ............................................ ............................... 8 ARTICLE IV EVENTS OF DEFAULT .................................................. ............................... 9 Section 4.1 Events of Default Defined .................................... ............................... 9 Section 4.2 Remedies on Default ............................................. ............................... 9 Section 4.3 No Remedy Exclusive ......................................... ............................... 10 Section 4.4 No Implied Waiver ............................................. ............................... 10 Section 4.5 Agreement to Pay Attorney's Fees and Expenses .............................. 10 Section 4.6 Indeinnification of City ....................................... ............................... 10 ARTICLE V DEVELOPER'S OPTION TO TERMINATE AGREEMENT ..................... 12 Section 5.1 The Developer's Option to Tenninate ................. ............................... 12 Section 5.2 Effect of Termination .......................................... ............................... 12 ARTICLE VI ADDITIONAL PROVISIONS ....................................... ............................... 13 Section 6.1 Restrictions on Use ............................................. ............................... 13 Section 6.2 Conflicts of Interest ............................................. ............................... 13 Section 6.3 Titles of Articles and Sections ............................ ............................... 13 Section 6.4 Notices and Demands ......................................... ............................... 13 Section 6.5 Counterparts ........................................................ ............................... 14 Section6.6 Law Governing ................................................... ............................... 14 Section6.7 Expiration ............................................................ ............................... 14 Section 6.8 Provisions Surviving Rescission or Expiration ... ............................... 14 Section 6.9 Assignment ......................................................... ............................... 14 EXHIBIT A DESCRIPTION OF DEVELOPMENT PROPERTY ........... ............................... A -1 EXHIBIT B FORM OF TIF NOTE ............................................................ ............................... B -1 EXHIBIT C SITE IMPROVEMENTS ....................................................... ............................... C -1 EXHIBIT D COMPLIANCE CERTIFICATE ........................................... ............................... D -1 i 46098950 DEVELOPMENT AGREEMENT THIS AGREEMENT, made as of the 15th day of May, 2012, by and between the City of Andover, Minnesota (the "City "), a municipal corporation organized and existing under the laws of the State of Minnesota and Arbor Oaks Senior Living, LLC, a Minnesota limited liability company, together with any successors and assigns, as provided herein (the 'Developer "), WITNESSETH: WHEREAS, pursuant to Minnesota Statutes, Section 469.124 through 469.134, the City has heretofore established Development District No. 1 (the "Development District ") and has adopted a development program therefor (the 'Development Program "); and WHEREAS, pursuant to the provisions of Minnesota Statutes, Section 469.174 through 469.1799, as amended, (hereinafter the "Tax Increment Act "), the City has heretofore created, within the Development District, Tax Increment Financing District No. 1 -5 (the "Tax Increment District ") and adopted a tax increment financing plan, dated May 1, 2012, (the "Tax Increment Plan ") therefor which provides for the use of tax increment financing in connection with certain development within the Development District; and WHEREAS, in order to achieve the objectives of the Development Program and particularly to make the land in the Development District available for development by private enterprise in conformance with the Development Program, the City has determined to assist the Developer with the financing of certain costs of a Project (as hereinafter defined) to be constructed within the Tax Increment District as more particularly set forth in this Agreement; and WHEREAS, the City believes that the development and construction of the Project, and fulfillment of this Agreement are vital and are in the best interests of the City, the health, safety, morals and welfare of residents of the City, and in accordance with the public purpose and provisions of the applicable state and local laws and requirements under which the Project has been undertaken and is being assisted. NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of theirs does hereby covenant and agree with the other as follows: 46098950 ARTICLE I DEFINITIONS Section 1.1 Definitions. All capitalized terms used and not otherwise defined herein shall have the following meanings unless a different meaning clearly appears from the context: Agreement means this Agreement, as the same may be from time to time modified, amended or supplemented; Business Day means any day except a Saturday, Sunday or a legal holiday or a day on which banking institutions in the City are authorized by law or executive order to close; City means the City of Andover, Minnesota; Compliance Certificate means the Compliance Certificate in substantially the form attached hereto as Exhibit D; County means Anoka County, Minnesota, in which the Development Property is located; Developer means Arbor Oaks Senior Living, LLC, its successors and assigns; Development District means Development District No. 1, including the real property described in the Development Program; Development Program means the development program approved in connection with the Development District; Development Property means the real property described in Exhibit A attached to this Agreement; Event of Default means any of the events described in Section 4.1 hereof; Legal and Administrative Expenses means the fees and expenses incurred by the City in connection with the adoption and administration of the Tax Increment Financing Plan, the preparation of this Agreement and the issuance of the TIF Note; Note Payiuent Date means August 1, 2014, and each August I and February I of each year thereafter to and including February 1, 2029; provided, that if any such Note Payment Date should not be a Business Day, the Note Payment Date shall be the next succeeding Business Day; Prime Rate means the rate of interest from time to time publicly announced by U.S. Bank National Association in Minneapolis, Minnesota, as its "reference rate" or any successor rate, which rate shall change as and when that prime rate or successor rate changes; 2 46098950 Project means an approximately 70 -unit senior rental housing development, consisting of approximately 49 assisted living apartments and 21 enhanced care studio apartments, all contained in one, 3 -story building, to be located on the Development Property; Site Improvements means the site improvements undertaken or to be undertaken on the Development Property, more particularly described on Exhibit C attached hereto; State means the State of Minnesota; Tax Increments means 90% of the tax increments derived from the Development Property which have been received and retained by the City in accordance with the provisions of Minnesota Statutes, Section 469.177; Tax Increment Act means Minnesota Statutes, Sections 469.174 through 469.1799, as amended; Tax Increment District means Tax Increment Financing District No. 1 -5 located within the Development District, a description of which is set forth in the Tax Increment Financing Plan, which was qualified as a housing district under the Tax Increment Act; Tax Increment Financing Plan means the tax increment financing plan approved for the Tax Increment District by the City Council on May 1, 2012; Terinination Date means the earlier of (i) February 1, 2029, (ii) the date the TIF Note is paid in fall, (iii) the date on which the Tax Increment District expires or is otherwise terminated, or (iv) the date this Agreement is terminated or rescinded in accordance with its terms; TIF Note means the Tax Increment Revenue Note ([Trident Development] Project) to be executed by the City and delivered to the Developer pursuant to Article III hereof, a copy of which is attached hereto as Exhibit B. Unavoidable Delays means delays, outside the control of the party claiming its occurrence, which are the direct result of strikes, other labor troubles, unusually severe or prolonged bad weather, acts of God, fire or other casualty to the Project, litigation commenced by third parties which, by injunction or other similar judicial action or by the exercise of reasonable discretion, directly results in delays, or acts of any federal, state or local governmental unit (other than the City) which directly result in delays. 46098950 ARTICLE II REPRESENTATIONS AND WARRANTIES Section 2.1 Representations and Warranties of the City. The City makes the following representations and warranties: (1) The City is a municipal corporation and has the power to enter into this Agreement and carry out its obligations hereunder. The City has adopted a resolution creating the Tax Increment District in which the Project is to be developed. (2) Based on the representation of the Developer set forth in Section 3.3 below, the Tax Increment District is a "housing district" within the meaning of Minnesota Statutes, Section 469.174, Subdivision 11, and was created, adopted and approved in accordance with the terms of the Tax Increment Act. (3) The development of the Project, contemplated by this Agreement is in conformance with the development objectives set forth in the Development Program. (4) To finance certain costs within the Tax Increment District, the City proposes, subject to the further provisions of this Agreement, to apply Tax Increments to reimburse the Developer for a portion of the costs of the Development Property and the construction of certain Site Iinprovements incurred in connection with the Project as further provided in this Agreement. (5) The City makes no representation or warranty, either expressed or implied, as to the Development Property or its condition or the soil conditions thereon, or that the Development Property shall be suitable for the Developer' purposes or needs. Section 2.2 Representations and Warranties of the Developer. The Developer makes the following representations and warranties: (1) The Developer is a Minnesota limited liability company, has power to enter into this Agreement and to perform its obligations hereunder and, by doing so, is not in violation of any provisions of its organizational documents or the laws of the State. (2) The Developer shall cause the Project to be constructed in accordance with the terms of this Agreement, the Development Program, and all applicable local, state and federal laws and regulations (including, but not limited to, environmental, zoning, energy conservation, building code and public health laws and regulations). (3) The construction of the Project would not be undertaken by the Developer, and in the opinion of the Developer would not have been or be economically feasible within the reasonably foreseeable future, without the assistance and benefit to the Developer provided for in this Agreement. :I 46098950 (4) The Developer will use its best efforts to obtain, or cause to be obtained, in a timely manner, all required permits, licenses and approvals, and will meet, in a timely manner, all requirements of all applicable local, state, and federal laws and regulations which must be obtained or met before the balance of the Project may be lawfully constructed. (5) Neither the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and conditions of this Agreement is prevented, limited by or conflicts with or results in a breach of, the terms, conditions or provision of any contractual restriction, evidence of indebtedness, agreement or instrument of whatever nature to which the Developer is now a party or by which it is bound, or constitutes a default under any of the foregoing. (6) The Developer will cooperate fully with the City with respect to any litigation commenced with respect to the Project. (7) The Developer will cooperate fully with the City in resolution of any traffic, parking, trash removal or public safety problems which may arise in connection with the construction and operation of the Project. (8) The construction of the Project shall commence no later than September 30, 2012 and barring Unavoidable Delays, the Project will be substantially completed by December 31, 2013. (9) The Developer will not seek a reduction in the market value as determined by the Anoka County Assessor of the Project or other facilities that it constructs on the Development Property, pursuant to the provisions of this Agreement, for so long as the TIF Note remains outstanding. 5 46098950 ARTICLE III UNDERTAKINGS BY DEVELOPER AND CITY Section 3.1 Project, Development Property, Site Improvements, and Administrative Expenses. (1) The parties agree that the acquisition of the Development Property and the installation of the Site Improvements are essential to the successful completion of the Project. The costs of the Site hnprovements shall be paid by the Developer. The City shall reimburse the Developer for up to $540,000 of the costs of acquisition of the Development Property and the Site Improvements actually incurred and paid by the Developer (the "Reimbursement Amount ") as further provided in Section 3.2. (2) Upon execution of this Agreement, the Developer shall reimburse the City for its actual out of pocket Legal and Administrative Expenses incurred in connection with the adoption of the Tax Increment Financing Plan and the preparation of this Agreement. Said Legal and Administrative Expenses shall be limited to no more than $20,000. Section 3.2 Reimbursement: TIF Note. The City shall reimburse the payments made by the Developer under Section 3.1 for costs of acquisition of the Development Property and the construction of the Site Improvements through the issuance of the City's TIF Note in substantially the form attached to this Agreement as Exhibit B, subject to the following conditions:: (1) The TIF Note shall be dated, issued and delivered when the Developer shall have demonstrated in writing to the reasonable satisfaction of the City that the construction of the Site Improvements and the Project has been completed and that the Developer has incurred and paid all costs of acquisition of the Development Property and the construction of Site hnprovements, as described in and limited by Section 3.1 and shall have submitted paid invoices for the costs of construction of the Site Improvements in an amount not less than the Reimbursement Amount. (2) The unpaid principal amount of the TIF Note shall bear simple, non - compounding interest from the date of issuance of the TIF Note, at 5.00% per annum. Interest shall be computed on the basis of a 360 day year consisting of twelve (12) 30 -day months. The principal amount of the TIF Note and the interest thereon shall be payable solely from the Tax Increments. (3) The payment dates of the TIF Note shall be the Note Payment Dates. On each Note Payment Date and subject to the provisions of the TIF Note, the City shall pay, against the principal and interest outstanding on the TIF Note, the Tax Increments received by the City during the preceding six months. All such payments shall be applied first to accrued interest and then to reduce the principal of the TIF Note. (4) The TIF Note shall be a special and limited obligation of the City and not a general obligation of the City, and only Tax Increments shall be used to pay the principal of and interest on the TIF Note. If, on any Note Payment Date, the Tax Increments for the payment of the accrued and unpaid interest on the TIF Note are insufficient for such purposes, the difference shall be carried forward, without interest accruing thereon, and shall be paid if and to the extent C� 46098950 that on a future Note Payment Date there are Tax Increments in excess of the amounts needed to pay the accrued interest then due on the TIF Note (5) The City's obligation to make payments on the TIF Note on any Note Payment Date or any date thereafter shall be conditioned upon the requirement that there shall not at that time be an Event of Default that has occurred and is continuing under this Agreement. (6) The TIF Note shall be governed by and payable pursuant to the additional terms thereof, as set forth in Exhibit B. In the event of any conflict between the terms of the TIF Note and the terms of this Section 3.2, the terms of the TIF Note shall govern. The issuance of the TIF Note pursuant and subject to the terms of this Agreement, and the taking by the City of such additional actions as bond counsel for the TIF Note may require in connection therewith, are hereby authorized and approved by the City. Section 3.3 Compliance with Low and Moderate Income Requirements. (1) The City and the Developer understand and agree that the Tax Increment District will constitute a "housing district" under Section 469.174, Subd. 11 of the Tax Increment Act. Accordingly, in compliance with Section 469.1761, Subd. 3 of the Tax Increment Act, the Developer agrees that the Project must satisfy, or be treated as satisfying, the income requirements for a qualified residential rental project as defined in Section 142(d) of the Internal Revenue Code. The parties fiirther agree that no more than 20% of the square footage of the Project (which is the only building receiving assistance from Tax Increments) may consist of commercial, retail, or other nonresidential uses. The Developer must meet the above requirements as follows: (A) At least 20% of the residential units in the Project must be occupied or available for occupancy by persons whose incomes do not exceed 50% of the County median income; and (B) The limits described in clause (A) must be satisfied through the Termination Date. Income for occupants of units described in clause (A) shall be adjusted for family size in accordance with Section 142(d) of the Internal Revenue Code and related regulations. (2) On or before each July 1, commencing on July 1, 2015, and each July 1 thereafter, the Developer or an agent of the Developer must deliver or cause to be delivered to the City a Compliance Certificate executed by the Developer covering the preceding twelve (12) months together with written evidence satisfactory to the City of compliance with the covenants in this Section. This evidence must include a statement of the household income of each of qualifying renter, a written determination that each qualifying renter's household income falls within the qualifying limits of this Section (and Section 142(d) of the Internal Revenue Code), and certification that the income documentation is correct and accurate (and that the determination of qualification was made in compliance with Section 142(d) of the Internal Revenue Code). The City may review, upon request, all documentation supporting the Developer submissions and statements. In determining compliance with this Section, the Developer must use the County median incomes for the year in which the payment is due on the TIF Note, as promulgated by the 7 46098950 Minnesota Housing Finance Agency based on the area median incomes established by the United States Department of Housing and Urban Development. Section 3.4 Replacement Reserve. Developer shall deliver evidence satisfactory to the City that the Developer's mortgage financing contains loan covenants requiring the Developer to fund and maintain a replacement reserve in such amounts- satisfactory to the City. In the event Developer's mortgage financing does not contain such loan covenants, then the following shall apply: (1) Commencing in January 1, 2015, Developer shall snake deposits to a replacement reserve account in an amount equal to $500 per unit per year. Such deposits shall continue until the TIF Note has terminated by maturity or otherwise. The Development may use amounts on hand in such replacement reserve account to pay the cost of capital expenditures related to the Project, including the cost of replacement, repair, reconstruction, or restoration of the Project. All income realized from the investment of the replacement reserve account shall be credited as received to such account and may be applied against the required deposit. (2) On or before April I of each year, commencing April 1, 2015, Developer shall deliver to the City a copy of its annual financial statements as prepared by Developer's certified public accountant, and including income statements and balance sheet, which shall include evidence of the deposits to the replacement reserve account. In the event that the Developer has failed to snake the required annual deposit, as shown on the annual financial statements, Developer shall have 60 days from the date the financial statements are delivered to the City to make such deposit and shall provide the City with written evidence that such deposit has been made within such 60 -day period. 46098950 ARTICLE IV EVENTS OF DEFAULT Section 4.1 Events of Default Defined. The following shall be "Events of Default" under this Agreement and the term "Event of Default" shall mean whenever it is used in this Agreement any one or more of the following events: (1) Failure by the Developer to timely pay any ad valorem real property taxes assessed, special assessments or other City charges with respect to the Development Property when due and payable. (2) Failure by the Developer to cause the construction of the Project to be completed pursuant to the terms, conditions and limitations of this Agreement. (3) Failure of the Developer to observe or perform any other covenant, condition, obligation or agreement on its part to be observed or performed under this Agreement. (4) The holder of any mortgage on the Development Property or any improvements thereon, or any portion thereof, commences foreclosure proceedings as a result of any default under the applicable mortgage documents. (5) If the Developer shall: (A) file any petition in bankruptcy or for any reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar relief under the United States Bankruptcy Act of 1978, as amended or under any similar federal or state law; or (B) snake an assignment for the benefit of its creditors; or (C) admit in writing its inability to pay its debts generally as they become due; or (D) be adjudicated as bankrupt or insolvent; or if a petition or answer proposing the adjudication of the Developer as bankrupt or its reorganization under any present or future federal bankruptcy act or any similar federal or state law shall be filed in any court and such petition or answer shall not be discharged or denied within sixty (60) days after the filing thereof, or a receiver, trustee or liquidator of the Developer, or of the Project, or part thereof, shall be appointed in any proceeding brought against the Developer, and shall not be discharged within sixty (60) days after such appointment, or if the Developer, shall consent to or acquiesce in such appointment. Section 4.2 Remedies on Default. Whenever any Event of Default referred to in Section 4.1 occurs and is continuing, the City, as specified below, may take any one or more of the following actions after the giving of thirty (30) days' written notice to the Developer, but only if the Event of Default has not been cured within said thirty (30) days: so 46098950 (1) The City may suspend its performance under this Agreement and the TIF Note until it receives assurances from the Developer, deemed adequate by the City, that the Developer will cure its default and continue its performance under this Agreement. (2) The City may cancel and terminate the Agreement and the TIF Note. (3) The City may take any action, including legal or administrative action, in law or equity, which may appear necessary or desirable to enforce performance and observance of any obligation, agreement, or covenant of the Developer under this Agreement. Section 4.3 No Remedy Exclusive. No remedy herein conferred upon or reserved to the City is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. Section 4.4 No Implied Waiver. In the event any agreement contained in this Agreement should be breached by any party and thereafter waived by any other party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other concurrent, previous or subsequent breach hereunder. Section 4.5 Agreement to Pay Attorney's Fees and Expenses. Whenever any Event of Default occurs and the City shall employ attorneys or incur other expenses for the collection of payments due or to become due or for the enforcement or performance or observance of any obligation or agreement on the part of the Developer herein contained, the Developer agrees that it shall, on demand therefor, pay to the City the fees of such attorneys and such other reasonable expenses so incurred by the City. Section 4.6 Indemnification of City. (1) The Developer releases from and covenants and agrees that the City, its governing body members, officers, agents, including the independent contractors, consultants and legal counsel, servants and employees thereof (hereinafter, for purposes of this Section, collectively the "Indemnified Parties ") shall not be liable for and agrees to indemnify and hold harmless the Indemnified Parties against any loss or damage to property or any injury to or death of any person occurring at or about or resulting from any defect in the Project, provided that the foregoing indemnification shall not be effective for any actions of the Indemnified Parties that are not contemplated by this Agreement. (2) Except for any willful misrepresentation or any willful or wanton misconduct of the Indemnified Parties, the Developer agrees to protect and defend the Indemnified Parties, now and forever, and further agrees to hold the aforesaid harmless from any claim, demand, suit, action or other proceeding whatsoever by any person or entity whatsoever arising or purportedly arising from the actions or inactions of the Developer (or other persons acting on its behalf or under its direction or control) under this Agreement, or the transactions contemplated hereby or the acquisition, construction, installation, ownership, and operation of the Project; provided, that 10 46098950 this indemnification shall not apply to the warranties made or obligations undertaken by the City in this Agreement or to any actions undertaken by the City which are not contemplated by this Agreement but shall, in any event and without regard to any fault on the part of the City, apply to any pecuniary loss or penalty (including interest thereon from the date the loss is incurred or penalty is paid by the City at a rate equal to the Prime Rate) as a result of the Developer operating the Project so that the Tax Increment District does not qualify or ceases to qualify as a "housing district" under Section 469.174, Subdivision 11, of the Act or to violate limitations as to the use of Tax Increments as set forth in Section 469.176, Subdivision 4d. (3) All covenants, stipulations, promises, agreements and obligations of the City contained herein shall be deemed to be the covenants, stipulations, promises, agreements and obligations of the City and not of any governing body member, officer, agent, servant or employee of the City. 11 46098950 ARTICLE V DEVELOPER'S OPTION TO TERMINATE AGREEMENT Section 5.1 The Developer's Option to Terminate. This Agreement may be terminated by Developer, if (i) the Developer is in compliance with all material terms of this Agreement and no Event of Default has occurred; and (ii) the City fails to comply with any material tern of this Agreement, and, after written notice by the Developer of such failure, the City has failed to cure such noncompliance within ninety (90) days of receipt of such notice, or, if such noncompliance cannot reasonably be cured by the City within ninety (90) days, of receipt of such notice, the City has not provided assurances, reasonably satisfactory to the Developer, that such noncompliance will be cured as soon as reasonably possible. Section 5.2 Effect of Termination. If this Agreement is terminated pursuant to this Article V, this Agreement shall be from such date forward null and void and of no further effect; provided, however, the tenmination of this Agreement shall not affect the rights of either party to institute any action, claim or demand for damages suffered as a result of breach or default of the terms of this Agreement by the other party, or to recover amounts which had accrued and become due and payable as of the date of such termination. Upon termination of this Agreement pursuant to this Article V, the Developer shall be free to proceed with the Project at its own expense and without regard to the provisions of this Agreement; provided, however, that the City shall have no further obligations to the Developer with respect to reimbursement of the expenses set forth in Section 3.2, or to make any fiirther payments on the TIF Note. 12 46098950 ARTICLE VI ADDITIONAL PROVISIONS Section 6.1 Restrictions on Use. The Developer agrees for itself, its successors and assigns and every successor in interest to the Development Property, or any part thereof, that during the tern of this Agreement the Developer and such successors and assigns shall operate, or cause to be operated, the Project as a senior rental housing facility and shall devote the Development Property to, and in accordance with, the uses specified in this Agreement. Section 6.2 Conflicts of Interest. No member of the governing body or other official of the City shall have any financial interest, direct or indirect, in this Agreement, the Development Property or the Project, or any contract, agreement or other transaction contemplated to occur or be undertaken thereunder or with respect thereto, nor shall any such member of the governing body or other official participate in any decision relating to the Agreement which affects his or her personal interests -or the interests of any corporation, partnership or association in which he or she is directly or indirectly interested. No member, official or employee of the City shall be personally liable to the City in the event of any default or breach by the Developer or successor or on any obligations under the terms of this Agreement. Section 6.3 Titles of Articles and Sections. Any titles of the several parts, articles and sections of the Agreement are inserted for convenience of reference only and shall be disregarded in construing or interpreting any of its provisions. Section 6.4 Notices and Demands. Except as otherwise expressly provided in this Agreement, a notice, demand or other communication under this Agreement by any party to any other shall be sufficiently given or delivered if it is dispatched by registered or certified mail, postage prepaid, return receipt requested, or delivered personally, and (1) in the case of the Developer is addressed to or delivered personally to: Arbor Oaks Senior Living, LLC Attention: Roger D. Fink 3601 18th Street South, Suite 103 St. Cloud, Minnesota 56301 With a copy to: Kaplan, Strangis and Kaplan, PA Attention: David Karan 5500 Wells Fargo Center 90 South Seventh Street Minneapolis, MN 55402 13 46098950 (2) in the case of the City is addressed to or delivered personally to the City at: City of Andover, Minnesota Attention: City Administrator 1685 Crosstown Boulevard NW Andover, Minnesota 55304 with a copy to: Briggs and Morgan, P.A. Attention: Mary Ippel W2200 First National Bank Building 332 Minnesota Street St. Paul, MN 55101 or at such other address with respect to any such party as that party may, from time to time, designate in writing and forward to the other, as provided in this Section. Section 6.5 , Counterparts. This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same instrument. Section 6.6 Law Governing. This Agreement will be governed and construed in accordance with the laws of the State. Section 6.7 Expiration. This Agreement shall expire on the Termination Date. Section 6.8 Provisions Surviving Rescission or Expiration. Sections 4.5 and 4.6 shall survive any rescission, termination or expiration of this Agreement with respect to or arising out of any event, occurrence or circumstance existing prior to the date thereof. Section 6.9 Assi uig ment. The Developer shall not assign its interest in this Agreement or the TIF Note without the consent of the City pursuant to action by the City Council, which consent shall not be unreasonably withheld. 14 46098950 IN WITNESS WHEREOF, the City has caused this Agreement to be duly executed in its name and on its behalf and its seal to be hereunto duly affixed, and the Developer has caused this Agreement to be duly executed on its behalf, on or as of the date first above written. CITY OF ANDOVER, MINNESOTA By Its Mayor By Its City Administrator This is a signature page to the Development Agreement by and between the City of Andover and Arbor Oaks Senior Living, LLC. S -1 46098950 ARBOR OAKS SENIOR LIVING, LLC By Its This is a signature page to the Development Agreement by and between the City of Andover and Arbor Oaks Senior Living, LLC. S -2 46098950 EXHIBIT A DESCRIPTION OF DEVELOPMENT PROPERTY Parcel Identification Numbers: 22- 32 -24 -11 -0024 22- 32 -24 -11 -0025 NOTE: PROPERTY TO BE RE- PLATTED, A DIFFERENT LEGAL DESCRIPTION MAY APPLY UPON RECORDING A -1 46098950 No. R -1 EXHIBIT B FORM OF TIF NOTE UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF ANOKA CITY OF ANDOVER TAX INCREMENT REVENUE NOTE (ARBOR OAKS SENIOR LIVING PROJECT) $540,000 The City of Andover, Minnesota (the "City "), hereby acknowledges itself to be indebted and, for value received, hereby promises to pay the amounts hereinafter described (the "Payment Amounts ") to Arbor Oaks Senior Living, LLC, or its registered assigns (the "Registered Owner "), but only in the manner, at the times, from the sources of revenue, and to the extent hereinafter provided. The principal amount of this Note shall equal from time to time the principal amount stated above, as reduced to the extent that such principal installments shall have been paid in whole or in part pursuant to the terms hereof, provided that the sum of the principal amount listed above shall in no event exceed $540,000 as provided in that certain Development Agreement, dated as of May 1, 2012, as the same may be amended from time to time (the "Development Agreement "), by and between the City and Arbor Oaks Senior Living, LLC The unpaid principal amount hereof shall bear interest from the date of this Note at the simple, non- compounding interest at a rate of five and zero hundredths percent (5.00 %) per annum. Interest shall be computed on the basis of a 360 day year consisting of twelve (12) 30 -day months. The amounts due under this Note shall be payable on August 1, 2014, and on each August 1 and February 1 thereafter to and including February 1, 2029, or, if the first should not be a Business Day (as defined in the Development Agreement) the next succeeding Business Day (the "Payment Dates "). On each Payment Date the City shall pay by check or draft mailed to the person that was the Registered Owner of this Note at the close of the last business day of the City preceding such Payment Date an amount equal to the Tax Increments (hereinafter defined) received by the City during the six month period preceding such Payment Date. All payments made by the Authority under this Note shall first be applied to accrued interest and then to principal. This Note is prepayable by the Authority, in whole or in part, on any date. The Payment Amounts due hereon shall be payable solely from 90% of the tax increments (the "Tax Increments ") from the Development Property (as defined in the Development Agreement) within the City's Tax Increment Financing District Tax Increment Financing District No. 1 -5 (the "Tax Increment District ") within its Development District No. 1 which are paid to the City and which the City is entitled to retain pursuant to the provisions of Minnesota Statutes, Sections 469.174 through 469.1799, as the same may be amended or supplemented from time to time (the "Tax Increiment Act "). This Note shall terminate and be of 46098950 no further force and effect following the termination of the Tax Increment District, on any date upon which the City shall have tenminated the Development Agreement under Section 4.2(2) thereof or the Developer shall have terminated the Development Agreement under Article V thereof, or on the date that all principal and interest payable hereunder shall have been paid in frill, whichever occurs earliest. The City makes no representation or covenant, expressed or implied, that the Tax Increments will be sufficient to pay, in whole or in part, the amounts which are or may become due and payable hereunder. The City's payment obligations hereunder shall be further conditioned on the fact that no Event of Default under the Development Agreement shall have occurred and be continuing at the time payment is otherwise due hereunder, but such unpaid amounts shall become payable, without interest accruing thereon in the meantime, if said Event of Default shall thereafter have been cured; and, further, if pursuant to the occurrence of an Event of Default under the Development Agreement the City elects to cancel and rescind the Development Agreement, the City shall have no further debt or obligation under this Note whatsoever. Reference is hereby made to all of the provisions of the Development Agreement, including without limitation Section 3.2 thereof, for a fuller statement of the rights and obligations of the City to pay the principal of this Note, and said provisions are hereby incorporated into this Note as though set out in full herein. This Note is a special, limited revenue obligation and not a general obligation of the City and is payable by the City only from the sources and subject to the qualifications stated or referenced herein. This Note is not a general obligation of the City of Andover, Minnesota, and neither the full faith and credit nor the taxing powers of the City are pledged to the payment of the principal of this Note and no property or other asset of the City, save and except the above - referenced Tax Increments, is or shall be a source of payment of the City's obligations hereunder. This Note is issued by the City in aid of financing a project pursuant to and in full conformity with the Constitution and laws of the State of Minnesota, including the Tax Increment Act. This Note may be assigned only with the consent of the City which consent will not be unreasonably withheld. In order to assign the Note, the assignee shall surrender the same to the City either in exchange for a new fully registered note or for transfer of this Note on the registration records for the Note maintained by the City. Each permitted assignee shall take this Note subject to the foregoing conditions and subject to all provisions stated or referenced herein. IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions, and things required by the Constitution and laws of the State of Minnesota to be done, to have happened, and to be performed precedent to and in the issuance of this Note have been done, have happened, and have been performed in regular and due fonrn, time, and manner as required by law; and that this Note, together with all other indebtedness of the City outstanding on the date hereof and on the date of its actual issuance and delivery, does not cause the indebtedness of the City to exceed any constitutional, statutory or charter limitation thereon. 46098950 IN WITNESS WHEREOF, City of Andover, Minnesota, by its City Council, has caused this Note to be executed by the manual signatures of its Mayor and City Administrator and has caused this Note to be issued on and dated .20 . Mayor Administrator :a 46098950 CERTIFICATION OF REGISTRATION It is hereby certified that the foregoing Note, as originally issued on , 20_, was on said date registered in the naive of Arbor Oaks Senior Living, LLC, and that, at the request of the Registered Owner of this Note, the undersigned has this day registered the Note in the name of such Registered Owner, as indicated in the registration blank below, on the books kept by the undersigned for such purposes. NAME AND ADDRESS OF REGISTERED OWNERS Arbor Oaks Senior Living, LLC 3601 1Sth Street South, Suite 103 St. Cloud, Minnesota 56301 46098950 DATE OF REGISTRATION ., 20 20 , 20 W SIGNATURE OF CITY ADMINISTRATOR EXHIBIT C SITE IMPROVEMENTS Landscaping, including irrigation Foundations and Footings Grading/earthwork Engineering Survey Environmental Testing Soil Borings Site Preparation Onsite Utilities Stone Water /Ponding Outdoor Lighting Onsite Road, Curb, Gutter, Driveway, Sidewalk and Streetscape Improvements Parking C -1 46098950 EXHIBIT D COMPLIANCE CERTIFICATE The undersigned Arbor Oaks Senior Living, LLC, does hereby certify that as of the date of this Certificate not less than 20% of the residential units in the Arbor Oaks Senior Living Project located at in Andover, Minnesota (the "Project ") are occupied by individuals whose income is 50% or less of the Anoka County median income. Dated this day of , 20 ARBOR OAKS SENIOR LIVING, LLC LOSE Its D -1 46098950 f I Y 1 Y r 9 y A 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763) 755 -8923 • WWW.CI.ANDOVER.MN.US TO: Mayor and City Council CC: Jim Dickinson, City FROM: Michelle Hartner, Deputy City Clerk SUBJECT: Approve Refuse /Recycler Hauler Licenses DATE: May 15, 2012 INTRODUCTION Refuse /recycle hauler licenses expire on May 31, 2012. DISCUSSION The following licensed haulers in the City have applied for renewal of their licenses. Ace Solid Waste, Inc. Allied Waste Aspen Waste Systems Inc. Loe's Oil LePage & Sons Randy's Sanitation Inc. Waste Management ACTION REQUIRED The City Council is requested to approve residential and commercial licenses for the haulers listed above, contingent upon payment of appropriate fees and their trucks passing inspections performed by our mechanics. The license period will be from June 1, 2012 through May 31, 2013. Respectfully submitted, Michelle Hartner Deputy City Clerk Attach: License Applications r F rf .s NDOVE 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763) 755 -8923 • WWW.ANDOVERMN.GOV LICENSE APPLICATION REFUSE /RECYCLE HAULERS Business Name A6 SoW %3 ke ,''ftC 2. Address of Business: 'Street -Cify State Zip 3. Business Phone Number E -mail Address l 4. Owner of the collection service: P A I I Name (Please print) Phone Number - - .boor Winlwf k�tl WLu St •eet Address rty A State Zip 5. Attach a description of each piece of equipment proposed to be used in the collection operation. 6. Attach a schedule of services to be made to the customer including, but not limited to, proposed days of collection in different areas of the city. 7. Attach a schedule of varying rates based on the volume of weight of the refuse collected indicating the charge for each size container or other schedule of charges. S. Provide a certificate of public liability-insurance in the amount of at least $100,000 for injuries, including accidental death, to any one person and in an amount not less than $300,000 for each accident; and for loss or damage to property in the amount of $50,000. 9. Check all types of = you collect and indicate where they are taken for disposal /processing or recycling: Name & Location of Disposal/Processing/Recycling Garbage C'- ��e t� L{ Ok ;,� Tires Used Oil Appliances jys kvpmea � j 4J 5 . iqux i tuA KtAqm3 Name & Location of Disposal/Processing /Recycling % Corrugated :2r)npp,k- iyjhk- d,1QD�i�i Edible Food Waste Scrap Metal Yard Waste1i��C v� Demolition/Constiuction Debris 't ld t(. CIL z Paper /Paper Products Plastic Newsl Ashes Tree I Office Glass Other - specify 10. License(s) Requested: _ Residential Commercial 11. Number of trucks proposed to be licensed Applicant acknowledges receipt a . af�' c py o� _.0 de Title. 4 -,. Clial)ter 2 and agrees to c mpl tall times wi h -tlie pr�vi i f saicclinance. '� /ign e1 Date L C I T Y 0 F ^ 1685 CROSSTOWN BOULEVARD N.W.. ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763) 755 -8923 • WWW.AN DOVE RMN.GOV LICENSE APPLICATION REFUSE/RECYCLE HAULERS 1. Business Name 2. Address of usiness: Street city State Zip 3. Business Phone Number E -mail Address 4. Own�qp of the collection service: Name (Please print) Phone -Number �,e er Ae- /, f/, Street Address city State Zip 5. Attach a description of each piece of equipment proposed to be used in the collection operation. 6. Attach a schedule of services to be made to the customer including, but not limited to, proposed days of collection in different areas of the city. 7. Attach a schedule of varying rates based on the volume of weight of the refiise collected indicating the charge for each size container or other schedule of charges. 8. Provide a certificate of public liability insurance in the amount of at least $100,000 for injuries, including accidental death, to any one person and in an amount not less than $300,000 for each accident; and for loss or damage to property in the amount of $50,000. 9. Check all types of materials you collect and indicate where they are taken for disposal /processing or recycling: Name & Location of Disposal /Processing /Recycling Garbage d t V %rte Tires Used Oil Appliances Name & Location of DisposaUProcessing /Recycling A- Corrugated � A, ,r/ ,�r�GlS Edible Food Waste Scrap Metal Yard Waste 'ed "/I Demolition/Construction Debris -s , .� Y— Paper /Paper Products Plastics A Newspaper , e Ashes /, , Other - specify 10. License(s) Requested: _ Residential Commercial 11. Number of trucks proposed to be licensed Applicant aclaiowledges receipt of a copy of City Code Title 4, Chapter 2 and agrees to comply at all times with the provisions of said ordinance. J> Sig-aft ue (Date L C I T Y 0 F Y NNIJU ;� � r� 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763) 755 -8923 • WWW.ANDOVERMN.GOV LICENSE APPLICATION REFUSE/RECYCLE HAULERS 1. Business Name A -PeN ASTE Yom` am s , M , 2. Address of Business: Street City State Zip Business Phone Numberk1Vb64 -e E -mail Address 4. Owner of the collection service: Name (Please print) Phone Number Street Address City State Zip Attach a description of each piece of equipment proposed to be used in the collection operation. 6. Attach a schedule of services to be made to the customer including, but not limited to, proposed days of collection in- different areas of the city. 7. Attach a schedule of varying rates based on the volume of weight of the refuse collected indicating the charge for each size container or other schedule of charges. 8. Provide a certificate of public liability insurance in the amount of at least $100,000 for injuries, including accidental death, to any one person and in an amount not less than $3 )00,000 for each accident; and for loss or damage to property in the amount of $50,000. 9. Check all types of materials you collect and indicate where they are taken for disposal /processing or recycling: Name & Location of Disposal/Processing /Recycling Garbage 1 <13 - i N I R AN sF°FI -- Tires Used. Oil 0/� Appliances N Name & Location of Disposal /Processing[Recycling o� Corrugated PION C�`jZ_ CSR HOC 1c TEN tj i� Edible Food Waste N DIZ Scrap Metal A LTEIL Mr1 elm, ,/ Yard Waste OK6A -N jo, TLTj A - Demolition/Constniction Debris V Paper /Paper Products PId N 1J;L op— R() Plastics Mp(Ar ►� V/ Newspaper lIV!� /V A GeMR 9 Ashes .jE Tik-A N FER- -- F-W msmw (ue men ( m Other - specify 10. License(s) Requested: Residential Commercial 11. Number of tricks proposed to be licensed 13 Applicant acknowledges receipt of a copy of City Code Title 4, Chapter 2 and agrees to cow at all times with the provisions of said ordinance. Sigmture Date v �+`.► 1 fi: 1685 CROSSTOWN BOULEVARD N.W.. ANDOVER, MINNESOTA 55304 . (763) 755 -5100 FAX (763) 755 -8923 • WWW.ANDOVERMN.GOV LICENSE APPLICATION REFUSE/RECYCLE HAULERS 1. Business Name r 2. Address of Busines 3118162nd Lane NW Suite B Andover, MN 55304 Street �iry state Zip 3. Business Phone Numb efl63 °751 "71' mail Address i 4. Owner of the collection service: Name (Please print) Phone Number Street Address City State Lip 5. Attach a description of each piece of equipment proposed to be used in the collection operation. 6. Attach a schedule of services to be made to the customer including, but not limited to, proposed days of collection in different areas of the city. 7. Attach a schedule of varying rates based on the volume of weight of the refuse collected indicating the charge for each size container or other schedule of charges. 8. Provide a certificate of public liability insurance in the amount of at least $100,000 for injuries, including accidental death, to any one person and in an amount not less than $300,000 for each accident; and for loss or damage to property in the amount of $50,000. 9. Check all types of materials you collect and indicate where they are taken for disposal /processing or recycling: Name & Location of Disposal/Processing /Recycling C Garbage Tires Used Oil Appliances -;,,_s � Nance & Location of DisposaUProcessing/Recycling _ Corrugated Edible Food Scrap Metal Yard Waste Ic Demolition/ `c Paper /Paper _ Plastics Newsp Ashes y Tree D X Office -FII \f- Glass Other - specify 10. License(s) Requested: Residential V/ Cormnercial 11. Number of trucks proposed to be licensed O�LLG, -t ko Applic t aclalo ledges receipt of a copy of City Code Title 4, Chapter 2 and agrees to corn 1 t a 'ti .1 with the provisions of said ordinance. i'w °a�i e Date i{ NDOVE --------------------------------------------- 1685 CROSSTOWN BOULEVARD N.W.. ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763) 755 -8923 • WWW.ANDOVERMN.GOV LICENSE APPLICATION REFUSE /RECYCLE HAULERS 1. Business Name fC�VL 11 S�tln `i %ct i Off? �t' 2. Address of Business: ro 60 /t- 9 13 51 Lk!5 . Nwv /a 5,-& . he f t t, 0 1'Yl h . 55 53 Streit City � State Zip 3. Business Phone Number tip` 3 3.3 E -mail Address 4. 5 C Owner of the collection service: Name (Please print) Phone Number 4351 X-5, )Jwy jj, SL�7 Street Addr ss City State' Zip Attach a description of each piece of equipment proposed to be used in the collection operation. Attach a schedule of services to be made to the customer including, but not limited to, proposed days of collection in different areas of the city. 7. Attach a schedule of varying rates based on the volume of weight of the refuse collected indicating the charge for each size container or other schedule of charges. 8. Provide a certificate of public liability insurance in the amount of at least $100,000 for injuries, including accidental death, to any one person and in an amount not less than $300,000 for each accident; and for loss or damage to property in the amount of $50,000. M FILL. SE V t O y,H`u4 1 �(, L, y�'��� 9. Check all types of materials you collect and indicate where they are taken for disposal /processing or recycling: Name & Location of Disposal/Processing/Recycling U° Garbage E_ //� t' Uer Land f Tires Used Oil 1„ Appliances ,T R.'5 f 1 d ya.oce r r' i /�i (ors {'1 �,et &,,°v tire' /hi-s Name & Location of DisposaUProcessing /Recycling Corrugated PNcv,v. J al's Kee cj e. 4- T'aw s _ er_ b(---) la nC, Edible Food Waste L/ Scrap Metal nal,, r" Ca pk -TKOIJ IIVI,InE�ayo 11'6 11° Yard Waste Demolition/Construction Debris Paper /Paper Products V"" J Plastics Newspaper Ashes Tree Debris y' Office Paper2,Y1�t/`5�LyC� LX Glass L/Other - specify �!C f 3�0Yt i �- i i t?. rt �s Proees 5 itn9 10. License(s) Requested: Residential _,� Commercial 11. Number of trucks proposed to be licensed Applicant acknowledges receipt of a copy of City Code Title 4, Chapter 2 and agrees to comply at all times with the provisions of said ordinance. Signature e Date �1r�r�j k D 1685 CROSSTOWN BOULEVARD N.W.. ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763) 755 -8923 • WWW.ANDOVERMN,GOV LICENSE APPLICATION REFUSE/RECYCLE HAULERS 1. Business Name U1!15 Ma iii iNlv4 al M I e 2. Address of Business: Street City State Zip 3. Business Phone Number'" 1JV E -mail Address 4. Owner of the collection service: Name lease print) Phone Number Address City State ' Zip 5. Attach a description of each piece of equipment proposed to be used in the collection operation. 6. Attach a schedule of services to be made to the customer including, but not limited to, proposed days of collection in different areas of the city. 7. Attach a schedule of varying rates based on the volume of weight of the refuse collected indicating the charge for each size container or other schedule of charges. 8. Provide a certificate of public liability insurance in the amount of at least 100,000 for injuries, including accidental death, to any one person and in an amount not less than $300,000 for each accident; and for loss or damage to property in the amount of 550,000. 9. Check all types of materials you collect and indicate where they are taken for disposal /processing or recycling: Name & Location of Disposal/Processing/Recycling Garbage G yec+.,� tV4 Piet yi 0 0 - I (p 9T, Tires Used Oil — Appliances 1;1 W i 1 ri 1°Lk��. Name & Location of Disposal/Processing/Recycling �(_ Con- tgated _j&)M- 1,2� �Y� � - 'j , jqjrL,F _ 1 2 0 T gy -ewl i "Li fi %fiu lw'l Edible Food Waste 1._ S crap Metal ' `l I U,1-NN S }!Y1 12- r? 0 0're Iac wl —u-i - . Yard Waste C°l n AY t Demolition/Constniction Debris _'� i"�_t l i��1 I 9 1 sue-,. c ° Paper /Paper Products 1A� yYl °� � ,'tyt t c, 1` (. _ ► 6D An U "j, Y1 N �I ti� i r � _ Plastics Newspaper Ashes X, Tree Debris r,_ _OfficePapeT - Glass Other - specify 10. License(s) Requested: 3 Residential Commercial 11. Number of trucks proposed to be licensed 1685 CROSSTOWN BOULEVARD N.W. e ANDOVER, MINNESOTA 55304 * (763) 755 -5100 FAX (763) 755 -8923 e WWW.ANDOVERMN.GOV TO: Mayor and Councilmembers CC: Jim Dickinson, City Administrator FROM: Lt. Shelly Orlando - Anoka County Sheriff's Office SUBJECT: Anoka County Sheriff's Office Monthly Report - Sheriff DATE: May 15, 2012 INTRODUCTION Lt. Shelly Orlando from the Anoka County Sheriff's Office will be present to provide the Council and the citizens of Andover with an update on law enforcement activities within the City. - - , , - - -- DISCUSSION To be verbally presented. ACTION REQUIRED For Council information. Respectfully submitted, Lt. Shelly Orlando Anoka County Sheriff's Office FROM: David L. Carlberg, Community Development Director SUBJECT: Update from the Crooked Lake Area Association DATE: May 15, 2012 REQUEST The Crooked Lake Area Association has requested the opportunity to provide an update to the City Council on association activities. / 1685 CROSSTOWN BOULEVARD N.W. a ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763) 755 -8923 • WWW.CI.ANDOVER.MN.US TO: Mayor and Councilmembers CC: Jim Dickinson, City Administrator Dave Carlberg, Community Development Director FROM: Courtney Bednarz, City Planne, SUBJECT: Public Hearing/Vacation of Easement /Grey Oaks /1640 and 1678 - 155th Lane NW - Planning DATE: May 15, 2012 INTRODUCTION The proposed vacation of easements would eliminate drainage and utility easements on the two lots proposed to be developed with the Arbor Oaks 70 unit senior assisted living project. DISCUSSION The proposed vacation of existing drainage and utility easements is one step in clearing the way for the proposed project. A preliminary plat to combine the two lots and establish new perimeter drainage and utility easements was reviewed by the Planning Commission on May 8a' and is scheduled for review by the Council on June 5t". The proposed vacation of easement is contingent upon approval of the Arbor Oaks plat and establishment of new drainage and utility easements. The vacation of easement resolution and final plat will be required to be recorded concurrently. The vacation of easement will not affect other easements that exist on the subject property for a natural gas pipeline or overhead power line. ACTION REQUESTED The Council is asked to hold a public hearing and approve the vacation of easement. Attachments Resolution Location Map Easement Vacation Exhibit Cc: Roger Fink, Trident Development 3601 18th Street South, Suite #103 St. Cloud, MN 56301 CITY OF ANDOVER COUNTY OF ANOKA STATE OF MINNESOTA RES. NO R A RESOLUTION GRANTING THE VACATION OF EASEMENTS ON LOTS 1 AND 2, BLOCK 1 GREY OAKS LEGALLY DESCRIBED ON THE ATTACHED EASEMENT VACATION EXHIBIT AND AS FOLLOWS: Those drainage and utility easements as dedicated per the recorded plat of GREY OAKS, Anoka County, Minnesota described as follows: All drainage and utility easements overnunder and across Lots 1 and 2, Block 1, said GREY OAKS, Anoka County, Minnesota WHEREAS, the applicant has requested to vacate the previously described drainage and utility easements; and WHEREAS, a public hearing was held and there was no opposition to the request. WHEREAS, the City Council finds the request would not have a detrimental effect upon the health, safety, moral, and general welfare of the City of Andover; and NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Andover hereby grants the vacation of the drainage and utility easement and street right -of -way. Adopted by the City Council of the City of Andover on this _ day of , 2012 subject to the following: 1. Approval is contingent upon approval of the Arbor Oaks preliminary and final plats. 2. The vacation of easement and right -of -way shall only be recorded at Anoka County concurrently with the final plat of Arbor Oaks. ATTEST Michelle Hartner, Deputy City Clerk CITY OF ANDOVER Michael R. Gamache, Mayor 579515796-L 15797157 578715788 JJ 15785157 577515774 15773 157 575715760 15761157 W f00 Lo d' M O 0 W 00 CO OD N O al®fille ID M012@i h O~i LO ti N 00 0 00 -2 00 00 �0 pVE Ah� Proposed Vacation of Easement Lots 1 and 2, Grey Oaks, Anoka County, Minnesota 1640 and 1678 155th Lane NW 15625 173, M ti r` �_ ti - 1687 1665 5� CO N o� O °� 1641 15440 15435 15424 15419 6 15408 15403 15400 2115392 15389 9715378 15377 7315364 15365 15355 15349 4515344 15341 3915336 15333 3315328 15325 15320 15317 AR&W-A Incorporated 1974 15 319 5798 b 3 15790 15789 oo �1Y ^N ^ry ^� ^ ^C ny co o A ory ro ^ ro 1v � 15644 ^ y 15544 rn Cl) M o 11' v ^� o* 15534 W CLOI m ^ 15520 yS h a b�655 r- 15506 41 ^h� ry ^ 0 ^aN R2 15545 15496 h ^ � ^ '� 155 15486 in do ^h ^yo p°j^ ^ j S32 15533 155 ^ tq � S 15476 �s4^ �`^ oo ��� Stu 15527155 6 s �h �y o �S 7 % 155 ^Plb o S �SS7 r 155: CID m A6 7S 15440 Age ^ o ` o� ^ Chssosrto NO h rk It U) oa M Q1573 ;a, �' X93 .� �� �N M R(b 15389 1466 n`b "I 15377 r 7 'gyp` 7F 1079 &0 15365 ':0 Lr) LO 105 ' 105A io4A It O cD Cfl d' N O CO J A2A Lo F 15245 Subject Property N W� E s tn O D lT 'O O O N N i I v N Y Easement Vacation b I I i l� s COMMON i w / 8 1 L. EEw EN / `----------- - - - - -- / Mme Af I I I l T 24 I i I I I I I I I for of " 04/17/12 Civil Englnoam and Lond Surveyors Lots 1 & 2, Block 1, GREY OAKS M) ZI 3001 Thureton Ave., ;1% Ninneea. 55303 703 -A27 -6000 FAX 763- 427 -0520 SHEEfS �� 04 17 12 FILE 65. 3735.01 —10 I � C rI zl n I I I � 1 i I I I l T 24 I i I I I I I I I I 766.78 � „� eta ser31'oa•E 216.62 '� �•-� I - °gR.Rilstl. 'u. 1 d I 10 0 Drainage k Utility 1 1 0 LOT Easement .4 — to be woaled LOT 1 N 5 ('3RE i g ^ A I <S 10 • OA S g BLOCI< 10 - 10 0 0 Dra'To oge °e Ut4ity (per reoorded plot) LOT 1 / N6814I�i0'W LOT 2 / rI VL.L.V VY / BLOCK PROPOSED DRAINAGE AND UTILITY EASEMENT VACATION DESCRIPTION Those drainage and utility easements as dedicated per the recorded plat of GREY OAKS, Anoka County, Minnesota described as follows: All drainage and utility easements over under and across Lots 1 and 2, Block 1, sold GREY OAKS, Anoka County, Minnesota, '.�♦ *♦�`�♦�.�.�.�''. aa, n Z z � I Q I EO I = o m I _o 4 o' = i z Iz 1 0 Scale 1” =100' I hereby certify that this survey, plan or report was prepared by me or under my direct supervision and that I am a duly Professional Licensed Land Surveyor under the laws of the State of Minnesota. _ _, _ Hakanson Drainage & Utility Easement Vacation Exhibit SHEET 1 Anderson for of " 04/17/12 Civil Englnoam and Lond Surveyors Lots 1 & 2, Block 1, GREY OAKS 1 Chaffs R. Chris o herson, MN License No. 1842D Date p 3001 Thureton Ave., ;1% Ninneea. 55303 703 -A27 -6000 FAX 763- 427 -0520 SHEEfS �� 04 17 12 FILE 65. 3735.01 v 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763) 755 -8923 • WWW.CI.AN DOVER. MN.US TO: Mayor and Councilmembers CC: Jim Dickinson, City Administrator Dave Carlberg, Community Development Director FROM: Courtney Bednarz, City Planne SUBJECT: Public Hearing/Vacation of Easement/Parkside at Andover Station 2"a Addition/1927, 1933, 1943 -140th Lane NW - Planning DATE: May 15, 2012 INTRODUCTION The proposed vacation of easements would eliminate internal side yard easements on three lots as shown on the attached Easement Vacation Exhibit. DISCUSSION The Andover Economic Development Authority (EDA) received and reviewed proposals for thepurchase of land it owns within Parkside at Andover Station for the purpose of constructing single family homes. It was identified that the existing lots were too narrow than the more traditional style single family home desired by the EDA. Concept plans were reviewed to show how the existing property lines within the development could be modified to achieve a larger home than had been constructed by the previous developer. The EDA subsequently approved a purchase agreement with Capstone Homes for construction of 35 single family homes after holding a public hearing on April 17tH The proposal included a home style that requires a 50 foot building pad and a three car garage. The proposed vacation of easement is the first step in preparing two of the lots for building pen-nits for the home style that was selected. The next step will be to record the vacation of easement and a lot line adjustment to widen the first two lots to 60 feet in width. These steps will allow the city to close on the sale of two lots and allow the builder to begin construction of the first two homes. The remnant parcel will be combined with the property to the west. A subsequent plat will be prepared for all 35 single family lots to complete the lot arrangement for the single family development. The sale of the first two lots is contingent on the builder participating in the plat to allow the legal descriptions to be platted with the rest of the single family lots. The proposed changes will not affect the property lines or easements of the two existing homes to the east. There are no utilities in the easements that are proposed to be vacated. Easements will be re- established adjacent to the new property lines with the future plat. ACTION REQUESTED The Council is asked to hold a public hearing and approve the vacation of easement. Attachments Resolution Location Map Easement Vacation Exhibit VetIrlyb tted, CITY OF ANDOVER COUNTY OF ANOKA STATE OF MINNESOTA RES. NO R A RESOLUTION GRANTING THE VACATION OF EASEMENT ON LOTS 3,4 AND 5, BLOCK 1 PARKSIDE AT ANDOVER STATION 2ND ADDITION LEGALLY DESCRIBED ON THE ATTACHED EASEMENT VACATION EXHIBIT AND AS FOLLOWS: Those drainage and utility easements as dedicated per the recorded plat of PARKSIDE AT ANDOVER STATION 2ND ADDITION, Anoka County, Minnesota described as follows: The easterly 5.00 feet of Lot 3, the westerly 5.00 feet, and the easterly 5.00 feet of Lot 4, and the westerly 5.00 feet of Lot 5, all of Block 1, said PARKSIDE AT ANDOVER STAION 2ND ADDITION, lying southerly of the northerly 10.00 feet, and lying northerly of the southerly 10.00 feet thereof. WHEREAS, the applicant has requested to vacate the previously described portion of drainage and utility easements; and WHEREAS, a public hearing was held and there was no opposition to the request. WHEREAS, the City Council finds the request would not have a detrimental effect upon the health, safety, moral, and general welfare of the City of Andover; and NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Andover hereby grants the vacation of the drainage and utility easement and street right -of -way. Adopted by the City Council of the City of Andover on this _ day of , 2012 subject to the following: 1. The vacation of easement and right -of -way shall be recorded at Anoka County. ATTEST Michelle Hartner, Deputy City Clerk CITY OF ANDOVER Michael R. Gamache, Mayor Proposed Vacation of Easement Lots 3,4 and 5 Parkside at Andover Station 2nd Addition, Anoka County, Minnesota 1927, 1933, 1943 140th Lane NW ANOW-A N Incorporated Subject Property WE 1974 S Easement Vacation Exhibit -----------------------T------------------------------- I I PROPOSED DRAINAGE AND UTILITY EASEMENT VACATION DESCRIPTION Those drainage and utility easements as dedicated per the recorded plat of PARKSIDE AT ANDOVER STATION 2ND ADDITION, Anoka County, Minnesota described as follows: The easterly 5.00 feet of Lot 3, the westerly 5.00 feet, and the easterly 5.00 feet of Lot 4, and the westerly 5.00 feet of Lot 5, all of Block 1, said PARKSIDE AT ANDOVER STATION 2ND ADDITION, lying southerly of the northerly 10.00 feet, and lying northerly of the southerly 10.00 feet thereof. Denotes y \ Easement to be Vacated Scale 1 " =3o' I hereby certify that this survey, plan or report was prepared by me or under my direct supervision and that I am a duly Professional Licensed Land Surveyor under the laws of the State of Minnesota. 04/26/12 CharfWR. Christopherson, MN License No. 18420 Date �� liakanson IjAnderson civil Engineers and Land Surveyors 36D7 Thu ston eve., anoka, Minnesota 55303 763 - 427 -5860 FA% 763 - 427 -0520 Northerly Line of Block 1, PARKSIDE AT DATE 04/26/12 1 FlIE N0. qp1 13 ANDOVER STATION 2ND ADDITION o p 5I----- - - - - -- I — — — — — — — — — — ----- - - - - -- Irk A )I�'�,II1F- A T I A N II�r \ /r - I ->I I / —\ I� r �.� I V L_ 1 I / —\ I / —\ I N LJ LJ V I 1 I I I jl I_.L_\JUl \ I I I I I 1 � L I 1 L/ I n I I I � 1 l I I I I I V I 1 ^T A TIr1N I 1', r) N In A F-\ 11T InN Ij —\ 5 1 / —\ I I L/ I V / I N L) / LJ L.) I I LJ I N ---- - - - - -- ---- - - - - -- ----- - - - - -- O — p Southerly Line of Block 1, PARKSIDE AT ANDOVER STATION 2ND ADDITION I n r%-7I I A k /r -n li Ir- t 11A1 0 (0 I`rlJ I F I /—\ V L -1 VIJL- I V YV to ' -----------------------T------------------------------- I I PROPOSED DRAINAGE AND UTILITY EASEMENT VACATION DESCRIPTION Those drainage and utility easements as dedicated per the recorded plat of PARKSIDE AT ANDOVER STATION 2ND ADDITION, Anoka County, Minnesota described as follows: The easterly 5.00 feet of Lot 3, the westerly 5.00 feet, and the easterly 5.00 feet of Lot 4, and the westerly 5.00 feet of Lot 5, all of Block 1, said PARKSIDE AT ANDOVER STATION 2ND ADDITION, lying southerly of the northerly 10.00 feet, and lying northerly of the southerly 10.00 feet thereof. Denotes y \ Easement to be Vacated Scale 1 " =3o' I hereby certify that this survey, plan or report was prepared by me or under my direct supervision and that I am a duly Professional Licensed Land Surveyor under the laws of the State of Minnesota. 04/26/12 CharfWR. Christopherson, MN License No. 18420 Date �� liakanson IjAnderson civil Engineers and Land Surveyors 36D7 Thu ston eve., anoka, Minnesota 55303 763 - 427 -5860 FA% 763 - 427 -0520 Drainage & Utility Easement Vacation Exhibit for Lots 3 -5, Block 1, PARKSIDE AT ANDOVER STATION 2ND ADDITION SHEET of 1 SHEETS DATE 04/26/12 1 FlIE N0. qp1 13 ANLDb �{1 _ v v 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 e (763) 755 -5100 FAX (763) 755 -8923 • WWW.CI.ANDOVER.MN.US TO: Mayor and Council Members FROM: Jim Dickinson, City Administrator SUBJECT: Schedule June EDA meeting DATE: May 15, 2012 INTRODUCTION The Council is requested to schedule an Economic Development Authority (EDA) meeting at 6:00 pm before the June 5, 2012 City Council meeting. DISCUSSION Tentative agenda items for an EDA meeting have been identified as follows: 1. Approve Meeting Minutes 2. Parkside at Andover Station Update 3. Trident Development (Arbor Oaks) Update 4. Redevelopment Discussion 5. Other Business Other items may be added upon request, or the meeting will be cancelled if no new information comes forward on the identified agenda items. ACTION REQUIRED Schedule an EDA meeting at 6:00 pm before the June 5, 2012 City Council meeting. submitted, Jiin1 Dickinson �&JNN�DOOVER$46� 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763) 755 -8923 • WWW.CI.ANDOVER.MN.US TO: Mayor and Council Members FROM: Jim Dickinson, City Administrator SUBJECT: Schedule June Council Workshop DATE: May 15, 2012 INTRODUCTION The Council is requested to schedule a Council Workshop for the month of June for a number of miscellaneous business items. DISCUSSION Potential agenda items for a general June workshop have been identified as follows: 1. Artificial Turf Task Force Presentation 2. Discuss County Roads & Intersections 3. 2012 -2013 Council Goals Discussion 4. 2013 Budget Development Discussion 5. 2013 -2017 CIP Development Discussion 6. 2012 General Fund Budget Progress Report 7. City Investments Review 8. Other Topics — dependent on May & June activities Other items may be added upon Council request or operational need. ACTION REQUIRED Schedule a June Council workshop for June 26 t at 6:00 pm or another date and time acceptable to the Council_ ed, TO: Mayor and Councilmembers FROM: Jim Dickinson, City Administrator SUBJECT: Administrator's Report DATE: May 15, 2012 The City Administrator will give a brief verbal update on various items of interest to the City Council and to the residents at the meeting. Listed below are a few areas of interest: 1. Administration & City Department Activities 2. Legislative Updates 3. Update on Development /CIP Projects - Trident Development /Arbor Oaks - Wal -Mart proposal - Parkside at Andover Station - Platting activity 4. Meeting reminders /Community Events Upon receipt of the meeting packet, if a member of the Council would like an update on a particular item, please notify me so an adequate update can be made. y submitted, on * A ND OVE 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763) 755 -8923 s WWW.ANDOVERMN.GOV TO: FROM: SUBJECT DATE: Mayor & Council Members Jim Dickinson, City Administrator Supplemental Agenda Item for May 15, 2012 City Council Meeting May 15, 2012 The City Council is requested to receive the following supplemental information. Add -On Closed Session: Property Acquisition Negotiations (PID #s 17- 32 -24 -13 -0003 & 17- 32- 24 -12- 0007) y submitted,