HomeMy WebLinkAbout11/20/1984 MEMO TO: Mayor and City Council
FROM: John K. Anderson , City Administrator
RE: Non-Agenda Informational Items
DATE: November 15 , 1984
1 . There has been a change in the managing partner of Zylstra-
United. Zylstra is no longer the managing partner. United
has become the managing partner and will be formally proposing
some changes before the end of the year .
2 . I have talked to Virgil Mears and we don ' t anticipate receiving
anything from the Scott Carver Economic Council on our parking
lease agreement for parking adjacent to the Minnesgasco
Building before the December 4th meeting .
3 . George Muenchow, LeRoy Houser and I have done some brainstorming
and are investigatiing the possibility of finding a used
water slide for the Shakopee Swimming Pool . The Slide would
be a down sized version of the one at Valleyfair and would
be mounted into the sliding hill to the south of the pool .
The idea is to make the installation inexpensive enough
so that the concept could be a revenue generator . Currently
we are just brainstorming and doing preliminary investigations .
If any Councilmembers have any thoughts or concerns about
this please contact me .
4 . On November 6 , 1984 the Scott County Board of Commissioners
approved Resolution 84097 agreeing to a two year renewal
of our agreement with the County to prosecute gross misdemeanor
criminal offenses for the City.
5 . Attached is a copy of the press release regarding our receipt
of the energy grant.
6 . Attached is a memo from Jeanne Andre with attachments regarding
some systematic surveying of the Scott County Senior Citizens
currently being conducted by the Metropolitan Council .
There is a meeting scheduled for Wednesday , November 28 ,
1984 from 1 : 30 to 3 : 00 p .m. at the Citizens State Bank to
review the Met Council ' s recommendations regarding these
finds on the needs of Scott County ' s elderly. I believe
if you look at the material closely you will see that two
of the key concerns were housing and transportation . We
are making efforts to address the housing concerns through
our work with the Housing Alliance and our mortgage revenue
bond application . Our transportation program should go
a long way in meeting the transportation needs of our community' s
elderly.
7 . Attached is a memo from George Muenchow regarding moving
the Lions Park ice skating rink from the Swimming Pool to
the North side of the parking lot adjacent to the outdoor
hockey rink.
8 . Attached are the Expenditure and Revenue Reports for the
period ending October 31 , 1984 .
9 . Attached is the Building Activity Report for the month ending
October 31 , 1984 . Looking at the total year to date valuation
of 29 million it is easy to see that the Racetrack and Prison
have had a significant impact. The total was only 8 million
for the same period in 1983 .
10. Attached are the minutes of the October 31 , 1984 meeting
of the Downtown Ad Hoc Committee .
11 . Attached are the minutes of the October 1 , 1984 meeting
of the S4�akapee Putlic Utilities Commission .
12. Attached are the minutes of the November 8 , 1984 meeting
of the Shakopee Coalition .
13 . Attached is a letter from Virgil Mears expressing his interest
in serving as Police Commissioner for another term.
14 . Reminder - City Hall will be closed Friday , November 23rd
because we switched this Friday for Columbus Day.
JKAljms
0&L A 134
on �
I11 gM leaque ®r minnes®ta cases i
RECENED
V 2 Q 1984
CITY 0i`
November 19, 1984
TO: Mayors, Managers, and Clerks
FROM: Donald A. Slater, Executive Director
RE: IDB Allocations Available
The Department of Energy and Economic Development, in a change of policy,
will receive applications for Industrial Development Bonds allocations from
cities and other eligible applicants through a date to be fixed in early
December.
It appears that the state may have $100 million or more in unallocated IDB
funding authority at this time. Cities with projects may apply at once to
DEED, 900 American Center Building, 150 E. Kellogg Blvd. , St. Paul, MN 55102,
on the same basis as any competitive pool application (bearing in mind that
pool applications no longer require the attainment of four processing points
to be funded; although if applications exceed funds available, the processing
points will determine priority of funding) .
For more information, contact Dick Nadeau, DEED, at (612) 297-4398.
DAS:lw
300 hanover building, 480 cedar street, saint paul, minnesota 55101 C61 21 222-2861
r
c N T�iQt�,
MEMO TO: John K. Anderson, City Administrator
FROM: Barry A. Sock, Administrative Intern
RE: Cable System Power Outages
DATE: November 20, 1984
Introduction and Background
During the last week the Shakopee Cable system has experienced
several power outages . The public access channel was out of
service from November 14 thru November 19 , 1984. The rest of
the system experienced intermittent power failures throughout
the weekend. On Monday, November 19 , 1984 the system was
restored to its full service level .
On Monday, November 19 , 1984 staff consulted with technicians
from Zylstra-United to discover what was causing their problems .
The technicians stated that the outages occurred on the trunk
lines and therefore the backup generator at the head-end could
not be used to solve the problem. The backup generator at the
head-end is used only when an outage occurs at the head-end.
To date the technicians are not sure as to what exactly caused
the outages . At this time they believe power surges or voltage
increases may be the cause but have no explanation for these
occurrances .
On Mondav staff also met with James Clark, Central Division
Manager for United Cable Company who was in town to meet with
the cable employees from our system. He informed staff that
as soon as possible he would be sending an engineer and technician
from their company to help iron out the problems in our system.
I was also informed that a Zylstra-United engineer from Yankton,
SD would be flown in next week to help find the source of the
current problem. Finally, Mr . Clark stated that the new manager
for the Shakopee-Chaska system would be here on January 1 , 1985 .
BAS/jms
RECr- QED 5
NOV 12 1984
CITY OF
Minnesota Department of Energy
and Economic Development
900 American Center Building
150 East Kellogg Boulevard
St.Paul,Minnesota 55101
FOR IMMEDIATE RELEASE FOR MORE I:TFORPIATION
Nov. 9 , 1984 CONTACT: John Gostovich
612-297-265.2
Dave Dunneli
612-33U-7260
Shakopee wins cor- unity energy grant
John Gostovich, Director of the Governor ' s Community Energy
Program and Shakopee Community Energy Council Chair Dave Dunnell
announced today that a $8,170 grant has been awarded to
Shakopee.
The grant will contribute to a $9 ,078 energy conservation
program in Shakopee for solid waste abatement and recycling
activities for three neighborhoods.
The Shakopee Community Recycling and Abatement Program
(SCRAP) will actively involve the Boy Scouts, Cub Scouts and
area Catholic schools.
The efforts of the Shakopee Community Energy Council drew
praise from Governor Rudy Perpich and Department of Energy and
Economic Development Commissioner Mark Dayton.
--more--
TO: John K. Anderson, City Administrator
FROM: Jeanne Andre, Community Development Director
RE: Metropolitan Council Planning Group on
Senior Service Delivery in Scott County
DATE: November 7, 1984
Introduction:
In early 1984 the Metropolitan Council started a study of
the delivery of services for senior citizens in Scott County.
The attached sheets summarize information collected from the
two Senior Clubs in Shakopee and summarize information from
other sources. I'll outline here what other steps have been
involved in the study.
Background:
Staff from the Metropolitan Council met with eight senior
groups in the County and sent surveys to 70 agencies and 44
churches to find out the current needs of seniors and services
provided. They also met with persons who work regularly with
seniors to see their perception of senior needs. Issues and
problems identified were: 1) Information about services,
2) Physical access to services and outreach services. They
determined that particular strengths in Scott County are the
existing programs for seniors and the informal support pro-
vided by family, local service clubs and churches.
The next stage of the study will
approach current needs which have not
appropriate resources to address those
JA:tw
be to address ways to
been met and work with
needs.
SUMMARY OF
APRIL 16, 1984
MEETING WITH SENIORS AT
FIRST NATIONAL BANK - SHAKOPEE
There are currently 4,492 people over the age of 60 in Scott County. Because
of the constantly changing age composition of the county's older population, it
is not clear whether services needed by older people in the county are
adequately available and if they are organized in a way that makes best use of
existing resources.
In order to examine these issues, the Program on Aging of the Metropolitan
Council is working with a number of local organizations to complete a study of
the entire "system" of services for older persons in Scott County. One step
within the study is to meet with older people to find out their views and
perceptions on the needs of seniors in Scott County.
On March 20, 1984, Judy Arends and Judith Joos of the Metropolitan Council's
Program on Aging met with approximately 70 seniors from Shakopee at the First
National Bank.
The seniors were asked to write down any needs or problems they believe older
people have within their community. Below are the needs identified by the
seniors.
NEEDS/PROBLEMS IDENTIFIED BY SENIORS
The services most frequently mentioned include: Transportation for shopping
and medical appointments, chore/home maintenance services, homemaker services
and home nursing visits.
STRENGTHS IDENTIFIED
Seniors were asked to identify the strengths in the community that provide
support to older persons. The two strengths mentioned were the Scott County
Human Services Department and neighbors.
CHARACTERISTICS OF GROUP MEMBERS
The seniors were also asked to respond to seven questions in order to get an
idea of the characteristics of the older people within the group. The chart
on the back of the page summarizes the responses received.
SUMMARY OF
APRIL 19, 1984
MEETING WITH SENIORS
AT LEVEE DRIVE - SHAKOPEE
There are currently 4,492 people over the age of 60 in Scott County. Because
of the constantly changing age composition of the county's older population, it
is not clear whether services needed by older people in the county are
adequately available and if they are organized in a way that makes best use of
existing resources.
In order to examine these issues, the Program on Aging of the Metropolitan
Council is working with a number of local organizations to complete a study of
the entire "system" of services for older persons in Scott County. One step
within the study is to meet with older people to find out their views on the
needs of seniors in Scott County.
On April 19, 1984, Judy Arends and Judith Joos of the Metropolitan Council's
Program on Aging met with approximately 45 seniors from Shakopee at the Levee
Drive Hi -Rise.
The seniors were asked to write down any needs or problems they believe older
people have within their community. The individual ideas that were shared are
summarized below. The needs identified are not ranked in order of importance.
Also summarized are the written comments received by the seniors.
NEEDS/PROBLEMS IDENTIFIED BY SENIORS IN THE LARGE GROUP
Shopping Assistance: Seniors mentioned a need for assistance in grocery
Shopping. They mentioned that help is needed to carry packages and that a
grocery delivery service would also be helpful.
Housing: The seniors felt that there is a.need for more affordable housing
or older people.
Transportation: The seniors mentioned that rides are needed to church
ac ivi ies an to congregate dining.
Problems: It was mentioned that a stoplight is needed on the corner of the
T rree -- rom the hi -rise to help seni ors cross the street. Also menti need rias
the desire for congregate dining to be expanded from 5 days a week to 7 days a
week.
WRITTEN COMMENTS RECEIVED
NLE'05 "fuEj F1F'itu""
The items most often mentioned by seniors included: transportation services, a
stoplight across the street, shopping assistance, full-time manager at Levee
Drive and congregate dining seven days a week.
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July 1984
METROPOLITAN COUNCIL
Suite 300 Metro Square Building, Saint Paul, Minnesota 55101
SERVICES PROVIDED TO OLDER PERSONS IN SCOTT COUNTY IN 1983:
SERVICE GROUP SUMMARIES
Number of Number of Total Estimated
Agencies Older Budget to
Providing Person Provide
Service Groups Service(s)a Served Service(s)c
1. S stem Access Services 12
I&R, Outreach, Advocacy, Case
Management, Protective Services,
Central Intake)
2. Physical Access Services 5
(Social Service Transportation,.
Escort)
3. In -Home Services 12
Home Nursing Care, Home Health
Aide, Homemaker, Chore,
Home Delivered Meals, Library
Book Delivery)
4. Community Health Services 12
Primary Inpatient Acute Care,
Health Screening and Testing,
Health Promotion, Rehabilitation,
Medical Assistance, Food Stamps,
Pre -Admissions Screening)
3,234 $ 81,375
1,029 $ 144,318
630 $ 287,792
2,908 $ 339,379
a Includes all agencies providing services to residents of Scott County,
whether or not the agency itself is located in Scott County. Information
as reported in survey of agencies: Spring 1984.
b Estimate of number of clients served who were age 60 and older, and
residents of Scott County. This number is not an unduplicated count across
agencies and services.
c Estimated amount of reported service budgets to serve persons who were 60
and older and Scott County residents. Service budgets were not reported
for 18 projects (21% of all projects reported).
-2 -
Number of Number of Total Estimated
LH1036
Agencies
Older
Budget to
Providing
Persons
Provide
Service Groups
Services)
Served
Service(s)
5.
Mental Health/Chemical
2
11
$
44,037
DeDendency Services
u patten ounse ing/
Psychotherapy, In -Patient
Mental Health Treatment)
6.
Social/Supportive Services
- Congregate Dining
1
413
$
145,000
- Social/Recreational, Group
7
1,953
$
80,514
Trips,
- Telephone Reassurance,
3
472
$
9,600
Friendly Visiting,
Self -Help & Support Groups
- Instruction/Education,
8
7,396
$
161,010
Special Library
- Volunteer Opportunities,
3
223
$
31,205
Employment
- Legal/Paralegal,
2
8
$
2,132
Tax and Forms
- Other Social Supportive
1
240
$
5,088
7.
Nursina Home Services
4
346
$4,425,835
8.
Housing Services
4
190
$
107,000
Supervised Housing for Elderly,
Planned Housing for Elderly)
9.
Housinq Related Services
2
633
$
236,400
Rehabilitation Assistance,
Rental Subsidy, Utility Subsidy)
10.
Safety and Security Services
6
159
$
9,798
Emergency Assistance, Victim
Assistance, Crime Prevention,
Safety Education)
LH1036
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BUILDING ACTIVITY REPORT
PERMITS ISSUED
Number
6460 - 6498
42
Single Fam.-Sewered
4
Single Fam.-Septic
3
Multiple Dwellings
1
(Mo.Units)(YTD Units)
(4)
Dwelling Additions
3
Other
5
Business District
1
Agricultural
-
Industrial -Sewered
-
Industrial -Septic
-
Accessory/Garages
4
Signs & Fences
5
Fireplaces/Wood Stove
1
Grading/Foundation
1
Remodeling (Res.)
7
Remodeling (Inst.)
-
Remodeling (Other)
4
CITY OF SHAKOPEE
OCTOBER, 1984
Yr. to Date Total Previous Year
Number Valuation Number Valuation
TOTAL TAXABLE
42
318
23,357,270
49 301 7,973,976
1 100,000
29
1,806,000
2
39
2,254,477
10
1,122,941
1
10
793,960
12
1,204,500
5
13
1,151,000
(32)
MO.
(12)
(32)
1
51
364,007
8
63
713,330
11
13,199,021
-
3
1,645,850
8
15740,875
1
9
559,000
-
Moving
1
1
165,000
45
373,438
7
41
238,301
38
43,357
6
39
72,191
7
20,130
3
14
31,775
10
2,637,000
3
12
119,006
36
141,792
3
23
108,721
1
6,345,000
-
1
100,000
41
704,209
2
15
121,365
TOTAL TAXABLE
42
318
23,357,270
49 301 7,973,976
1 100,000
TOTAL INSTITUTIONAL
-
1
6,345,000
-
GRAND TOTAL
42
31
z`� ; i v ; FL
ALF, �R2
8L-,07. 1 ;9.7 6
MO.
YTD.
MO.
YTD.
Variances
1
6
-
3
11
12
Conditional Use
2
15
Re -Zoning
1
2
-
Moving
-
1
_
Electric Permits
26
231
13
27
169
184
Plmbg. & Htg. Permits
50
249
Razing Permits
_
Residential
-
1
-
Commercial
-
-
Total dwelling units
in City after
completion
of all
construction
permitted
to date .........................3,734
Cora Hullander
Bldg. Dept. Secretary
1
CITY OF SHAKOPEE
BUILDING PERMITS ISSUED IN OCTOBER, 1984
95,000
2,000
4,700
2,000
450
204
6470
6460 Donald Lego
2101 Hillside
$
6472
Stuei,
Douse
Jeffe
6474
6461 Ronald Menke
955 Market
Alt.
6476
Kevin
6462 Gary Waller
1004 Swift
Stg.
Bldg.
6479
6463 John Kelly
226 Lewis
Alt.
6481
Robert
6464 OK Hardware
810 E. 1st
Alt.
Procoi
6484
6465 Roger's Sign
421 E. 1st
Sign
Jeffrey Kel zer
1#1. ' r
1'.1'C .
4131
v v
6365c
Kraus -Anderson
Racetrack
1,360,000
6467
Kraus -Anderson
Racetrack
1,848,454
6468
S.M. Hentges
2461 Hauer Trail
Addn.
1,400
64b<)
Bob Impker
1041 Ramsey
Addn.
10.000
s -Anderson
Racetrack
943415
Const'.
661 Hennes House
68,000
,e Const.
7632 Hwy 101
Footings
20,000
rson Carpentry
706 Holmes
Alt.
3,800
.lt Garages 338 Lewis
Garage
5,400
A.Tiderson
444 E. 1st
?,Lt.
12,003
Winter
1830 Marschall
Rd. Alt.
5,000
Jagner
230 Lewis
Sign
100
fuergens
1156 Van Buren
Addn.
63000
�s Duede
506 W. 7th
Fireplace
230
1, Inc.
2077, 2079, 2081 Apt.
110,000
& 2083 W. 12th
Jasper
1263_ Tyler
House
72,000
�1 Menke
1112 Pierce
House
69,000
1, Inc.
1257 Marschall
Rd. Aft.
700
1 Watson
112 Holmes
Sign
200
95,000
2,000
4,700
2,000
450
204
6470
Krau
64T1
Menke
6472
Stuei,
6473
Jeffe
6474
Durabi
V47
Kratlas-
6476
Kevin
6477
Carl G
6478
G.F.
6479
Charl(
6480
Wiggii
6481
Robert
6482
Micha(
6483
Procoi
6484
Josepl
6485
Jefferson Carpentry
811 E. 3rd
Alt.
6486
Shakopee 84 Pntrshp
590 S. Marschall
Comm.
6487
Lesters
1935 Eagle Creek
Stg. Bldg.
6488
Joseph Kerber
835 Sommerville
Alt.
6489
Roger Beuch
1812 E. Shakopee
Alt.
6490
Joseph Sand
1006 Shawmut
House
6491
Pump & Meter
SgO Marsch 1
Tanks
6492
David Moonen
223 Holmes
Sign
6493
Pump & Meter
615 Marschall
Tanks
6494
Johnson Reiland Co.
8563 McGuire Cir.
House
6495
Laurent Bldrs.
2415`Lakeview Dr.
House
/ 9
/i �
6496
Overstar Bldrs.
1110 E. 3rd
Garage
6497
Void
6498
Nordquist Sign
1257 Marschall
Sign
1
4,000
350,000
14,535
2,500
1,000
62,000
22,000
500
18,000
111,000
169,000
4,600
500
$4,551,088
PROCEEDINGS OF THE
DOWNTOWN AD HOC COMMITTEE
SHAKOPEE, MINNESOTA
October 31, 1984
Chrm. Laurent called the meeting
following voting members present:
Jr., Mike Sortum and Dan Steil.
Stoltzman. Absent: Steve Clay,
and Jim Stillman. Also present:
Jeanne Andre, Director Community
Planner and Mel Lebens.
to order at 7:30 A.M. with the
Jerry Wampach, Bill Wermerskirchen
Non voting member present: Lee
Terry Link, Don Martin, Joe Topic
John Anderson, City Administrator,
Development, Judi Simac, City
Wampach/Steil moved to approve the minutes of October 10, 1984 as
presented. Motion carried.
iilitt. i�aucit� �7�J�lci itxi'LtisS��3,i 1�yc�i
members. He suggested that Terry Forbord would be a good candidate
for the community liaison position, as he had approached Gary
about joining and has enthusiasm for the Committee's activities.
v a r -y oris- c5tlyt: i L5U`5 j 1 1J 1 C iC[b`�TT11Z i FtT�i .Sti^.�' �c V,,�J t h d i f f P r -e n
members agreeing to contact them about becoming active on the
committee.
John Anderson arrived at 7:43 A.M.
Mike Sortum asked if a larger number of members would become a
problem in having a quorum. It was decided that the committee
should just keep contacting perspective members and try to get as
many interested persons as possible as long as they will make the
time commitment. This item will be continued on future agendas.
It was also suggested that members should call when they are
unable to attend.
Chrm. Laurent opened discussion regarding the proposed contract
for consultant services submitted by Jack Lynch of Westwood
Planning and Engineering. Mr. Lynch recommended that he go on
to design one block with the selected design elements in order
_for_thQ_committee to see how it all works together.
Judi Simac arrived at 8:07 A.M.
Discussion followed with Gary Laurent feeling the need for the
selection of design elements, but questioning the need for the
engineering services right away.
John Anderson suggested the committee go out and look at different
projects to get some ideas of different design elements used in the
metro area. The committee felt this was a good idea to get some
design elements in mind before a planner is called in, so they
could tell him exactly what they wanted.
MINUTES OF THE
SHAKOPEE PUBLIC UTILITIES COMMISSION
(Regular Meeting)
The Shakopee Public Utilities Commission convened in regular session on October
1, 1984 at 4:30 P.M. in the Utilities meeting room.
Commissioner Kirchmeier offered a prayer for divine guidance in the deliberations
of the Commission.
Members Present: Commissioners Kirchmeier, Cook and Gorman. Also Manager Van
Hout, Superintendent Leaveck and Secretary Menden. Liaison Wampach was absent.
Motion by Cook, seconded by Gorman that the minutes of the September 6, 1984
regular meeting be approved as kept. Motion carried.
BILLS READ:
City of Shakopee
20,032.00
Marvin Athmann
78.50
Auto Central Supply
64.64
Ventz Construction Inc.
281.25
Border States Electric Supply Co.
30.00
Burmeister Electric Co.
791.88
Chapin Publishing Co.
65.52
City ofShakopee
1,209.63
Ditch Witch of Minnesota, Inc.
4.14
Feed Rite Controls, Inc.
538.24
General Electric
3,400.00'
Graybar Electric Supply
4,631.11
H & C Electric
108.00
Jerome Jaspers Co.
6,000.00
Lathrop Paint Supply Co.
3.00
Leef Bros., Inc.
26.00
Vincent Marschall
104.31
Metro Sales, Inc.
109.94
Minnesota Environmental Quality Board
45.67
Ted Neisen
226.00
Northern Oxygen Inc.
8.88
Northern Sanitary Supply Co., Inc.
224.90
Northern States Power Co.
262,435.30
Northern States Power Co.
1,270.24
Reynolds Welding Supply Co.
3.18
Schilz Ornamental Iron
30.00
Serco
64.00
Shakopee Floral
25.50
Shakopee Ok Hardware
48.77
Shakopee Public Utilities Commission
110.61
Shakopee Services
18.00
Starks Cleaning Service
17.30
State of Minn. Dpt of Labor and Industry
25.00
Stearns Thompson Oil Co.
366.75
Dean Smitr Trenching, Inc.
270.00
Southwest Suburban Publishing, Inc.
63.57
Square D. Company 155.00
Suel Business Equipment 35.23
Total Tool Supply inc. 27.69
Valley Industrial Propane 10.88
Lou Van Hout 111.93
Water Products Co. 865.81
Wesco 478.28
Hennens ICO 32.11
Motion by Cook, seconded by Gorman that the bills be allowed and ordered paid.
Motion carried.
The employees of the Shakopee Public Utilities Commission were present to present
to the Commission the 1985 wage and benefit requests.
LeRoy Worm and Ray Ohlman from the Valley Ice Arena were in attendance to discuss
with the Commission the current status of the electrical charges to the Valley Ice Arena.
Motion by Cook, seconded by Gorman to allow an adjustment of $200.00 per month for
5 summer months in 1985 (a total of $1,000.00) be made on the electric bill of the Valley
Ice Arena and that this arrangement will not continue after the specified time period.
Motion carried.
A copy of the report on the investigation done by the Minnesota Department of Health
on the municipal water supply dated July 11, 1984, was studied by the Commission.
Recommendations were made. The Commission commended the Manager and Superintendent and
staff on the high score received by the State.
Motion by Gorman, seconded by Kirchmeier to accept the five year Capital Improvement
Plan dated 7/18/84. Motion carried.
Motion by Kirchmeier, seconded by Gorman to offer Resolution #281, A Resolution
Authorizing Water Service to Century Plaza Square 2nd Addition. Ayes: Commissioners
Gorman, Kirchmeier,, Cook. Nayes: none. Resolution passed. Motion carried.
Motion by Gorman, seconded by Cook to engage the firm of Jerome Jaspers Co. to
prepare the 1984 audit for the Shakopee Public Utilities Commission in accordance with
their described fees. Motion carried.
The Minnesota Minicipal Utilities Association Fall meeting will be held October 24
thru October 26, 1984. Manager VanHout will be attending the Fall meeting.
There were no new plats for September, 1984.
Superintendent Leaveck reproted 2 fire calls for a total of 1 hour and 30 minutes.
There were no lost time accidents for September, 1984.
Motion by Cook, seconded by Gorman that the meeting be adjourned. Motion carried.
The next regular meeting of the Shakopee Public Utilities Commission will be Nov. 5,
1984, at 4:30 P.M. There will be an adjourned regular meeting on November 19, 1984.
Barbara Menden, Commissi n Secretary
SHAKOPEE COALITION
Meeting Minutes - November 8, 1984
The meeting was called to order by Chairman John Neely at 7:00 a.m. in the Citizens
State Bank Community Room.
Members Present: George Muenchow
Shakopee Community Services
John Neely
Shakopee Valley News
Jim Blubaugh
Shakopee Valley News
Jackie Kes
Scott -Carver Economic Council
Sr Jo Lambert
St Francis Regional Medical Center
Dave Theis
Shakopee Community Services
Skip Ploumen
Senior Citizens
Roman Schneider
Senior Citizens
Ruth Schneider
Senior Citizens
Ray Schmitt
Senior Citizens
Deloris Gorman
Shakopee Community Services
Joan Salter
Food Shelf
Kathy Lewis
Shakopee Community Services
Scott Jeffers
Viking Council Boy Scouts
Jim Streefland
Lions Club
John Leroux
City of Shakopee
Bob Newlin
Viking Council Boy Scouts
Jeff Manthe
Rotary Club
Bill Streff
Sahkopee Area Catholic Schools
Chairman Neely, speaking as a newspaperman,
gave an update on election results
within the County.
The new Valley News Editor, Jim Blubaugh, was introduced.
George Muenchow provided a progress report on the Community organizations Master
List that Shakopee Community Services was updating. Be requested assistance in
proofreading the copy which was distributed for everyone's review during the meeting.
Dave Theis, Shakopee Community Services Intern was introduced. Dave was responsible
for most of the work in this project.
John Leroux reported that the Shakopee Area Transit program apparently was working
well so far. The City Council, at its Tuesday meeting, authorized the purchase of
a back-up van in case one should ever break down.
Joan Salter reported that the Food Shelf is extremely busy with 61 Scott County and
41 Carver County families using this service in October. Although the numerical
size of user families seems to be diminishing, there still are large size families
in need. THERE IS A DESPARATE IMMEDIATE NEED FOR A NEW SITE, SINCE THE PRESENT
FACILITY IS UNDER NEW OWNERSHIP AND NEEDS THIS SPACE FOR ITS OWN ENTERPRISE.
ANYONE WITH LEADS FOR A NEW SITE ARE REQUESTED TO LET THIS BE KNOWN IMMEDIATELY.
Jackie Kes, Scott County Community Organizer for the Scott -Carver Exonomic Council,
gave a report on the "Give Where You Live" campaign. Special Events currently
scheduled include the Diet Centers in Shakopee and Prior Lake agreeing to donate
$1.00 for each pound lost by members who specify interest. There will be a benefit
dance December 16 at the Shenandoah Ballroom. The Shakopee American Legion has
agreed to sell advanced sale tickets. Price - $6.00 (tax deductible). Volunteers
are needed especially with the upcoming Holiday Project.
John Neely stated that Murphy's Landing currently is in need of funds. John Leroux
shared information gleaned from the recent City Council Meeting where Virgil Mears
appeared on behalf of Murphy's Landing requesting consideration for an annual finan-
cial contribution from the City. This was taken under consideration.
Mr. Robert Newlin, volunteer with the Viking Council of the Boy Scouts of America,
and Mr Scott Jeffers, Senior Exploring Executive, spoke on behalf of the Boy Scouts
of America Exploring Program. There is a current Explorers group in Shakopee
focusing on Cable TV. They are working with the Shakopee Sr High School in nurturing
an apparent interest in some other Career explorations. The current need is for a
local Sponsoring Organization. It interested, call 545-4550.
Jim Streefland announced that the annual Shakopee Lions Club Bingo Party is
Friday, November 16, at the K.C.Hall.
Chairman Neely announced that all members should be prepared to make nominations
for officers of the Shakopee Coalition for 1985 at the next Meeting. The election
would occur at the meeting following that one.
The meeting was adjourned at 8:00 a.m.
BECAUSE OF THE THANKSGIVING HOLIDAY, THE NEXT MEETING WILL BE IN THREE WEEKS,
NOVEMBER 29.
Respectfully submitted,
George F. Muenchow, Acting Secretary
/5
11-8-84
The Honorable Eldon Reinke
Mayor
City of Shakopee
129 E. 1st Ave.
Shakopee, MN 55379
Dear Mayor Reinke:
My term as Police Commissioner will end this
year. I have enjoyed serving in this capacity
and,if you are so inclined, would like to continue.
rSierely, . I
Vir 1 S. Mears
M/d
TENTATIVE AGENDA
ADJ.REG.SESSION SHAKOPEE, MINNESOTA
Mayor Reinke presiding
11 Roll Call at 7:00 P.M.
21 Recess for H.R.A. Meeting
31 Reconvene
4] Liaison Reports from Councilmembers
5] RECOGNITION BY CITY COUNCIL OF INTERESTED CITIZENS
NOVEMBER 20, 1984
61 Approval of Consent Business - (All items listed with an asterick are
considered to be routine by the City Council and will be enacted by
one motion. There will be no separate discussion of these items unless
a Councilmember so requests, in which event the item will be removed
from the consent agenda and considered in its normal sequence on the
agenda.)
*71 Approval of the Minutes of November 6th and 8th, 1984
81 Communications:
a] Gerald W. Wolner, Shakopee Village Homeowners Association Inc.
b] MAMA re: Joint Compensation Study
c] AMM re: Proposed Revisions to Metro Development Guide Housing Chapter
91 Public Hearings: 8:00 P.M. on restricting parking near the hospital
and court house
101 Boards and Commissions: Nothing
11] Reports from Staff:
a] Preliminary Review of Housing Alliance Tax Increment Application
b] 8:00 P.M. - Application for Off Sale Intoxicating Liquor License
by Valley Liquor Inc., John Bernstein, Pres., Mn. Valley Mall,
memo on table
c] Fire Relief Association Pension Funding Proposal
#d] Partial Estimate Voucher #1 for Timber Trails Park - $9,785.00
#e] Partial Estimate Voucher #1 for 84-4 Shenandoah Dr. - $115,584.60
#f] Partial Estimate Voucher #1 for Hwy 101 Intersections - $53,418.50
g] Authorize payment of bills in amount of $4,351,219.01
#h] Appointments to Downtown Committee
i] Appointment to Planning Commission, bring 11R from 11/6 agenda
j] Appointments to Expiring Terms on Boards and Commissions
k] Recording of Council and Planning Commission Meetings
11 On Sale Liquor License Requirements
m] Request for Funding from Minn. Valley Restoration Inc.
121 Resolutions and Ordinances:
a] Res. No. 2344, Giving Final Approval to Tax Increment District
No. 4, Racetrack
#hl Res. No, 2345, Approving the Second Amended Contract for Private
Development with Minn. Racetrack Inc.
131 Other Business:
a]
b]
c]
141 Adjourn.
John K. Anderson, City Administrator
PROCEEDINGS OF THE HOUSING AND REDEVELOPMENT AUTHORITY
SPECIAL SESSION SHAKOPEE, MINNESOTA NOVEMBER 6, 1984
Chrm. Colligan called the meeting to order at 8:04 with Comm. Vierling,
Leroux, Wampach and Lebens present. Also present were Jeanne Andre, HRA
Director; John K. Anderson, City Admr.; H. R. Spurrier, City Engineer;
Judi Simac, City Planner; Barry Stock, Admin. Aide; Julius A. Coller, II,
City Attorney and Mayor Reinke.
Lebens/Leroux moved to accept the special meeting call. Motion carried
unanimously.
Leroux/Wampach moved to approve the minutes of October 29, 1984 as kept.
Motion carried with Comm. Vierling and Lebens abstaining because of their
absence at that meeting.
Leroux/Vierling offered Resolution No. 84-18, A Resolution Calling A Pub-
lic Hearing on the Issuance By the Authority of its Tax Increment Revenue
Bonds (Shakopee Racetrack Project), and moved its adoption.
Roll Call: Ayes; Unanimous Noes; None Motion carried.
The HRA Director explained the bills that are to be paid from the bond
proceeds by the trustee, and added a disbursement to Krass, Meyer, Kanning
& Walsten for $3,500.00 for legal services.
Leroux/Wampach moved to authorize disbursement
crement Revenue Refunding Bonds, Series 1984 to
O'Connor & Hannan
Springsted Inc.
Holmes & Graven
Fox & Co.
First Trust Co. of St. Paul
K.F. Merrill Co.
K.F. Merrill Co.
Finance & Commerce
Krass, Meyer, Kanning & Walsten
Roll Call: Ayes; Vierling, Colligan, Leroux,
Noes; Lebens
Motion carried.
from the Minnesota Tax In -
the following payees:
$23,528.56
10,000.00
20,000.00
4,800.00
2,915.00
1,599.00
4,880.00
53.82
3,500.00
Wampach
Wampach/Vierling moved to adjourn at 8:09 p.m. Motion carried unanimously.
Jeanne Andre
HRA Director
Diane S. Beuch
Recording Secretary
LT w _ fir_ 4"%, v-% r_t rt
�o
akopee, Minnesota 55379-1376 (612) 445-3650 1 ,
November 16, 1984
INCORPORATED 187
129 E. First Ave. - Sh
axxu ni--ut--vt--1UpITteI1L Hl1LnOr1t
Y-
--------
in and for the City of Shakopee
Shakopee, MN 55379
rha_7_,izma . TIP -in. r': t7?i.tW,, h arj -wxJ-LL�-;IiAA -ire , 1.s -a T.Lre 7tT1A=e ,
-ing Executive Director of the Shakopee HRA, that a Special Meei
?0, of the HRA will be held at 7:00 P.M. on Tuesday, November
a 1984, in the Council Chambers of the City Hall to consider
:e Resolution Approving the Second Amended Contract for Privat
ier Development with Minnesota Racetrack, Inc., and for any ott
business which may come before the HRA.
le If you are unable to attend at this time, please let r
know.
Sincerely,
C4't'- etn'
Jeanne Andre
Executive Director
Shakopee HRA
JA:tw
CC: KSMM
Shakopee Valley News
Z -U Cable Television
The Hca7,1 of Progress 1'a C11
"Tax Increment Bonds") and a letter of credit equal to one year's
debt service on the Tax Increment Bonds as security for payment of
their real property taxes.
As the Council and Board of Commissioners are well aware, the
City has issued $46,000,000 of its industrial development bonds
(the "Series A Bonds") to replace the Twin City Federal construction
loan and limited partnership syndication proceeds as primary construc-
tion financing for the initial phase of the racetrack. Additionally,
the City has issued an additional $44,000,000 of its industrial
development bonds.(the "Series B Bonds") to finance expansion of
the racetrack. An additional round of negotiations between the City,
the HRA, your attorneys and financial consultants and MRI, its prin-
cipals and attorneys with respect to the structure of the tax incre-
ment financing portion of the total financial package occurred con-
currently with the structuring of the industrial development bond
issues. These negotiations culminated in the execution by the City,
HRA and MRI of an Agreement to Amend, Change and Modify Prior Agree-
ments (the "Agreement to Amend") dated as of October 15, 1984. The
Agreement to Amend provided, among other matters, that MRI would
utilize any arbitrage earnings on the $44,000,000 Series B industrial
development bonds to reduce the loan portion of the proposed tax in-
crement financing. Since the date of the execution of the Agreement
to Amend, we have been informed by representatives of MRI that, based
on representations of the underwriters for the industrial development
bonds, that use of Series B earnings and proceeds can be used to
replace the loan portion of the tax increment financing in its
entirety.
The revisions to the Second Amended Contract made from the
First Ahenaea contra -0t,' zlacK-11ne'n bn- the a-LV-at:11T_--QlTi2a:aA_,'Iiai.i yfciit1 ^^^_
erally into two categories: (i) changes incorporated in the agree-
ments made between the City, the 1IRA and MRI contained in the Agree-
ment to Amend; and (ii) changes reflecting substantial construction
of the project and substitution of industrial development bond finan-
cing for conventional financing so as to conform the document to the
factual circumstances in existence on the date hereof. The more
substantive modifications, are more specifically summarized as fol-
lows
I. modification of the lievfeioper's Guararrtees. -HR -has
agreed that MRI shall cause to be provided a letter of credit
in the approximate amount of one year's debt service on the
Tax Increment Bonds and personal and corporate guarantees to-
talling 25% of debt service on the Tax Increment Bonds (less
amounts drawn under the letter of credit) to secure debt ser-
vice on the Tax Increment Bonds rather than payment of real
property taxes. This significantly enhances the marketability
of the Tax Increment Bonds as revenue bonds, as moneys under
the letter of credit will be available to pay any shortfalls
in debt service caused by a drop in mill rates or change in
assessment ratios. Additionally, the letter of credit is
subject to reinstatement to its full amount after any partial
2
draw, which should insure that funds are available to pay any
shortfall in debt service on the Tax Increment Bonds without
resort to the guarantees.
2. Elimination of Tax Increment Loan. The $3,000,000
loan portion of the tax increment financing has been eliminated,
leaving intact the $3,000,000 tax increment grant. The $3,000,000
will be infused into the project through purchase and immediate
reconveyance by the HRA of the project site, the $3,000,000 pur-
chase price to be in respect to value added to the property as
a result of improvements by MRI constituting public redevelop-
ment costs relating to the project. The $3,000,000 promissory
note and the HRA's second mortgage securing such promissory
note have been eliminated. This has several benefits for the
City: (i) the City receives a financial benefit equal to the
present value of having $3,000,000 now as opposed to receiving
a stream of income totaling $3,000,000 under the promissory
note at below market interest rates; (ii) the 30 plus months
of capitalized interest which would need to have been bonded
for the additional $3,000,000 has been eliminated, effectively
making the tax increment which would have been necessary to
pay this portion of the bond debt available for other projects;
and (iii) the coverage factor on the Tax Increment Bonds is
more than doubled, thereby making the Bonds much more market-
able as revenue bonds rather than general obligation debt.
3.. Modification of Assessment Agreement. The minimum mar-
ket value established by the Assessment Agreement has been in-
creased from $41,245,000 to $43,245,000 and the so called "op-
tion property," constituting the portion of the initial race-
track site expected to be sold by MRI in the future, has been
eliminated from the property covered by the Assessment Agree-
ment, thereby increasing the minimum amount of tax increment
which the HRA can be assured of receiving from Tax Increment
District Nos. 1 and 5.
4. HRA and City Fees. MRI has agreed to pay a one time
fee of $75700 as an administrative fee in respect of issuance
of the industrial development bonds by the City, and has agreed
to an additional annual administrative fee of 1/8 of to of the
outstanding principal balance of the $44,000,000 Series A Bonds,
commencing after termination of the Assessment Agreement. Addi-
tionally, MRI has agreed to pay the fees of the City's attorneys
and consultants with.respect to the issuance of the industrial
development bonds and the tax increment restructuring.
The attached draft of the Second Amended Contract has not yet
been reviewed by MRI or its counsel; however, I do not anticipate
substantial changes between this draft and the draft which will be
submitted for approval next Tuesday night. Please do not hesitate
to call me directly if you have any questions on any of these matters.
3
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF SHAKOPEE
CITY OF SHAKOPEE
COUNTY OF SCOTT
STATE OF MINNESOTA
RESOLUTION NO. 84- 19.
A RESOLUTION APPROVING AN AMENDMENT TO THE
AMENDED CONTRACT FOR PRIVATE DEVELOPMENT WITH
MINNESOTA RACETRACK, INC.
BE IT RESOLVED by the Commissioners (the "Commis-
sioners") of the Housing and Redevelopment Authority (the
"Authority") in and for the City of Shakopee (the "City"),
as follows:
Section 1. Recitals.
1.01. The Authority, the City and Minnesota Racetrack,
Inc. ("MRI") have entered into an Amended Contract for
Private Development, dated as of June 12, 1984 (the "First
Amended Development Agreement"), with respect to the acqui-
sition and construction within the City by MRI of a
thoroughbred horseracing facility (the "Project"). The
First Amended Contract for Private Development superseded a
Contract for Private Development, dated as of February 28,
1984 (the "Original Development Agreement"). The Original
Development Agreement was negotiated and executed in antici-
pation of award of Class A and Class B racing franchises to
MRI by the Minnesota Racing Commission and was amended to
accomodate the interests of Twin City Federal Savings and
Loan Association ("TCF"), the proposed construction lender
for the Project.
1.02. As a result of a revised financing plan for the
Project, including substitution of industrial development
bond financing for the original conventional financing to be
provided by TCF, and certain changes in law and other cir-
cumstances subsequent to execution of the F-irst Amended
Development Agreement, the City, the Authority and MRI exe-
cuted an Agreement to Amend, Modify and Change Prior Agree-
ments, dated as of October 15, 1984, providing, among other
things, for further amendment of the First Amended Develop-
ment Contract to accomodate the revised financing plan and
facilitate financing of the Project.
1.03. The Commissioners have received and reviewed the
proposed amendment to the First Amended Development Agree-
ment, in the form attached hereto as Exhibit A (the "Second
Amended Development Agreement") and are of the opinion that
execution of the Second Amended Development Agreement will
facilitate financing and construction of the Project and is
in the best interests of the City and the Authority.
Section 2. Anuroval of Second Amended Development
Acreement.
2.01. The Authority hereby approves the execution of
the Second Amended Development Agreement in substantially
the form attached hereto, and directs the Chairman and the
Executive Director of the Authority to execute the Second
Amended Development Agreement and such other documents as
shall be deemed necessary to effect the intent of the Second
Amended Development Agreement together with such necessary
and appropriate variations, omissions and insertions as
permitted or required or as the Chairman, in his discretion,
shall determine, and the execution thereof by the Chairman
shall be conclusive evidence of such determination.
ADOPTED BY THE COMMISSIONERS OF THE AUTHORITY ON
NOVEMBER 20, 1984.
ATTEST:
Executive Director
Approved as to form this
day of November, 1984.
City Attorney
Chairman
- 2 -
CITY OF SHAKOPEE
COUNTY OF SCOTT
STATE OF MINNESOTA
RESOLUTION NO. 2345
A RESOLUTION APPROVING AN AMENDMENT TO THE
AMENDED CONTRACT FOR PRIVATE DEVELOPMENT WITH
MINNESOTA RACETRACK, INC., AND TAKING CERTAIN
OTHER ACTIONS WITH RESPECT THERETO
BE IT RESOLVED by the City Council (the "Council") of
the City of Shakopee (the "City"), as follows:
Section 1. Recitals.
1.01. The Authority, the City and Minnesota Racetrack,
have entered into an Amended Contract for
Private Development, ciatea - as or enc �� ►----
Amended Development Agreement"), with respect to the
acquisition and construction within the City by MRI of The
thoroughbred horseracing rfpci�ate Development superseded a
First Amended Corltl &c � fa . P
Contract for Private Development, dated as of February 28,
1984 (the "Original Development Agreement"). The Original
Development Agreement was negotiated and executed in antici-
^T,ti2e..^£_awar_d_of Class A and Class B racing franchises to
MRI by the Minnesota Racing Commission and was amencdea'to
accomodate the interests of Twin City Federal Savings and
Loan Association, the proposed construction lender for the
Project ("TCF").
1.02. As a result of a revised financing plan for the
Project, including substitution of industrial development
bond financing for the original conventional financing to be
provided by TCF, and certain changes in law and other cir-
cumstances subsequent to execution of the First Amended
Development Agreement, the City, the Authority and MRI exe-
cuted an Agreement to Amend, Modify and Change Prior Agree-
ments, dated as of October 15, 1984, providing, among other
things, for further amendment of the First Amended Develop-
ment Contract to accomodate the revised financing plan and
facilitate financing of the Project.
1.03. The Council has received and reviewed the pro-
posed amenamerit `to 'if -e 'T-1� 5 � ,rWW n�-`Lpi ^�' �- � Bement ,
L� �.Q,a 2 as Exhibit A (_the "Second
in 't'ne fai�� tet t
a � u ..
Amended Development Agreement"-) amt ai c VE -t`� 'an,LT•i^n- �'-�
t
execution of the Second Amended Development Agreement will
facilitate financing and construction of the Project and is
in the best interests of the City and the Authority.
Section 2. Approval of Second Amended Development
Agreement.
2.01. The City hereby approves the execution of the
Second Amended Development Agreement in substantially the
form attached hereto, and directs the Mayor, City
Administrator: and the City Clerk to execute the Second
Amended Development Agreement and such other, documents as
shall be deemed necessary to effect the intent of the Second
Amended Development Agreement; together with such necessary
and appropriate variations, omissions and insertions as
permitted or required or as the Mayor, in his discretion,
shall determine, and the execution thereof by the Mayor
shall be conclusive evidence of such determination.
ADOPTED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE ON
November 20, 1984.
ATTEST:
City Clerk
Approved as to form this
day of November, 1984.
City Attorney
Mayor
- 2
OFFICIAL PROCEEDINGS OF THE CITY COUNCIL
S.ESSI.ON. SHAKOPEE, MINNESOTA
seting to order at 8:04 p.m. with Cncl. wampacn,
ind Colligan present. Also present were Julius
tey; John K. Anderson, City Admr.; Jeanne Andre,
Simac, City Planner; H. R. Spurrier, City Engi-
n. Aide. The meeting did not convene until after
�.m.
!cess for an HRA meeting. Motion carried unanimously.
-e-convene at 8:09 p.m. Motion carried unanimously.
n by Councilmembers.
e was anyone present in the audience who wished
any item not on the agenda, and there was no res -
approve the minutes of October 15, 1984 and October
ous Noes; None w Motion carried.
approve the minutes of October 29, 1984 as kept.
, Colligan, Wampach, Reinke
xling, Lebens
ed.
�e Council to ask for financial support from the
1. He stated that Murphy's Landing's debt consists of
in outstanding bills. He said it is their feel-
.onal community support if they are going to con -
!eel Murphy's Landing is beneficial to the City,
id they are requesting both short term contribu-
.gations and also a pledge of long-term support.
gums of this nature never support themselves com-
as.
Murphy's Landing has joined with several other
:ions in the State to request the Legislature to
iding for these sites, and they are hopeful of
itive session, but they won't know until May.
ist a fact that without additional support they
operate. He said they really tried this year
roducing many new ideas and personnel and they
rship and tripled the gate receipts. But the
were expensive.
rdinance No. 351 which was passed 16 years ago
s started, in which it is stated the City should
additional funding and that if it failed, the
o the City. She added she also doesn't think
visit the gift shop or the restaurant.
they have changed this policy and there is no fee
r restaurant.
followed regarding the benefit of Murphy's Landing
ways of giving financial support to it, and various
Landing to increase its revenues.
l several things Murphy's Landing has done to try
and add entertaining and educational features,
additional gifts from corporations.
NOVEMBER 6, 1984
Mayor Reinke called the me
Leroux, Lebens, Vierling e
A. Coller, II, City Attorr
Comm. Develop. Dir.; Judi
neer and Barry Stock, Admi
the polls closed at 8:00 F
Lebens/Wampach moved to re
ra- 1 LQ /Lp_rnux_ moved to i
Liaison reports were give
Mayor Reinke asked ifther
to address the Council on
ponse.
Colligan/Leroux moved to
16, 1984 as kept.
Roll Call: Ayes; Unanim
Colligan/Leroux moved to
Roll Call: Ayes; Leroux
Noes; None
Abstain: Vie
Motion carri
Virgil Mears addressed th
City for Murphy's Landing
$50,000 loan and $20,000
ing that they need additi
tinue to operate. They f
as well as the County, ar
tion for the current obli
Mr. Mears added that musE
pletely from gate receipt
Mr. Mears explained that
small museums and attract
consider some type of fur
results from this Legisli
Mr. Mears stated it is ji
simply cannot continue ti
to attract people by inti
have doubled their member
changes and renovations 1
Cncl. Lebens mentioned 0
when Murphy's Landing wa
never be approached for
operation would revert t
there should be a fee to
Mr. Mears responded that
to visit the gift shop o
Considerable discussion
to the City and possible
suggestions for Murphy's
Mr. John Lynch explainer
to increase its revenues
with more publicity and
Shakopee City Council
November 6, 1984
Page 2
Colligan/Leroux moved to direct staff to research Ordinance No. 351 and
to explore any funding available to financially help Murphy's Landing
now and in the future. Motion carried unanimously.
Wampach/Leroux moved to submit the name of Dr. Thomas E. Luth to Scott
County as a candidate to assist the County Health Officer in meeting
the County's public health needs. Motion carried unanimously.
Colligan/Vierling moved to open the public hearing regarding the appeal
from the Shakopee Board of Adjustments and Appeals' approval of a variance
from setback requirements requested by Cletus Link for Lots 6 & 7, Block
2, East Shakopee. Motion carried unanimously.
The City Planner presented the background information regarding the appeal,
along with additional information submitted by the applicant for the
variance since the appeal was filed. This additional information was
not known by the Board of Adjustments and Appeals when the approval was
granted.
Discussion followed regarding whether or not this information changes
the scope of application enough to send it back to the Appeal Board, or
what options Council has to consider.
Clete Link stated that nothing has changed; the building will be the same
size and placed in the same location on the lot. He said at the Board of
Adjustments and Appeals hearing, there was a misunderstanding about the
number of service bays. It was thought there would be 3 bays, but there
will be six service bays, which necessitates more parking spaces, which
they will provide.
Bev Koehnen, appellant, stated her main concern is the adequacy of parking
for disabled vehicles, as she doesn't want them parked on her adjoining
property. She said there is also a question of whether or not there is an
alley between this property and hers. The applicant now has a curb cut
permit from the State to access the property from Hwy. 101, which alleviates
the problem of parking spaces.
Mr. Link responded that there isn't and never was an alley behind his pro-
perty. The City Engineer added he finds no records of an alley being de-
dicated or vacated in that block. He doesn't know where the utility right-
of-way is.
Leroux/Lebens moved to continue the public hearing to November 20, 1984
to allow for further research on the application and right-of-ways.
Mr. Link said his lot is 150 feet deep, which goes back to when the rail-
road had property there, and he doesn't want an alley. Because of the
date, it is urgent they get the project going. He said all they are ask-
ing for is approval of the variance already approved by the Board of Adjust-
ments and Appeals. The building is the same as presented, and they will
meet whatever parking spaces are required.
Discussion followed, with the City Attorney advising that the only issue
to be heard in this public hearing is the appeal of the variance, and the
other issues are part of the building permit process.
.,ot.ior_ tailed wi[Llt Cocl. Lebens, Leroux and Reinke in favor and Cacl. War:1 -
pach, Colli,(;an and opposed.
Colligan/Wampach moved to concur Gait'.. the l)oard oi: Adjustments and Appeals`
approval of the variance in setback requirements, Variance Resolution No.
CC -380.
Mr. Link explained that with the setback requirements for B-1, any average
lot will have to have variances granted to put any building on it. He
suggested the consideration of changing of the setbacks for B-1 to the
same as B-3 to allow development of those lots along Hwy. 101.
Shakopee City Council
November 6, 1984
Page 3
Motion carried with Cncl. Leroux and Mayor Reinke opposed.
The Admin. Intern gave some background on the efforts of the Energy and
Transportation Committee to obtain a back-up vehicle for the van pool
and dial -a -ride programs.
Leroux/Wampach moved to amend the Dial -A -Ride contract dated September
1, 1984 to include the following language to appear as Addendum No. 1 to
the contract (as listed in the memo from the Admin. Intern dated October
30, 1984).
Roll Call: Ayes; Unanimous Noes; None Motion carried.
Colligan/Leroux moved to adopt the transit policies submitted by the
Energy & Transportation Committee as formal Shakopee Area Transit policy.
Roll Call: Ayes; Unanimous Noes; None Motion carried.
Colligan/Leroux moved to concur with the recommendation of the Shakopee
Cable Communication Commission and support the efforts of Cable Tele-
vision Information Center in their challenge of the FCC's Nevada decision
W[11 n L1121111uC5 a irikra&irpblznG"ali�ata�ragtaJB.ri_oris__for_ Cable _ television. _
Roll Call: Ayes; Unanimous Noes; None Motion carried.
Colligan/Leroux moved to concur with the recommendation of the Shakopee
Cable Communications Commission and decline the invitation to join the
Metro Area Interconnect Commission at this time, but reserving the right
to join at a future date.
Roll Call: Ayes; Unanimous Noes; None Motion carried.
Colligan/Wampach offered Resolution No. 2341, A Resolution Setting Public
Hearing on 1985 Single Family Revenue Bond Program, and moved its adoption.
Consensus was to have staff contact developers to determine their interest
in this program.
Motion carried unanimously.
Colligan/Vierling moved to determine the HRA is to administer this program.
Motion carried unanimously.
Leroux/Vierling moved to authorize the appropriate City Officials to ad-
vertise for bids for a new front end loader based upon total cost purchase
plan with bids to be received on November 26, 1984 and the award on Decem-
ber 4, 1984. Motion carried unanimously.
Wampach/Lebens moved to waive, for the position of City Mechanic, the City's
practice of reviewing only candidates that have filed by the printed ad-
vertisement deadline because it is a minor procedural practice not prohi-
bited by Resolution No. 1913. Motion carried unanimously.
Leroux/Wampach moved to approve the hiring of Eugene Jeurissen for the
position of Mechanic I at step three of the pay plan with a two year and
six month service credit, effective November 26, 1984.
Roll Call: Ayes; Unanimous Noes; None Motion carried.
Colligan/Leroux moved to authorize payment in the following amounts as
settlement in the Shenandoah Drive Right-of-way Condemnation proceedings;
d:aru M. Christian and Loren Gross, $15,600; Hart Financial Corp. and
'3enderson E,OC. 1ay ?oacnim a523.,P-
3ilve:ha�ak N.Y., ,;77,.
aC:u zdwiri
Roll Call: Ayes; '-nanimous
* oes' 'cone ",otion carried.
Colligan/Leroux moved to authorize staff to use the investment services of
Kidder, Peabody and Smith Barney. Motion carried.
Roll Call: Ayes; Unanimous Noes; None
Colligan/Vierling moved to approve the hiring of Doralee Rosckes for the
position of Accounting at step two of the pay plan with a one year service
credit.
Roll Call: Ayes; Unanimous Noes; None Motion carried.
Colligan/Vierling moved that the bills in the amount of $92,570.41 be al -
1 wed and ordered paid.
R_)11 Call: Ayes; Unanimous Noes; None Motion carried.
Shakopee City Council
November 6,.1984
Page 4
Colligan/�eroux moved to approve increasing the total appraisal fee to
Ken Lewis and Assoc. for parcels 3 through 8 be increased from $1,200.00
to $1,800.00 for Hwy 101 By -Pass R -O -W acquisition.
Roll Call: Ayes; Unanimous Noes; None
Motion carried.
The City Engineer addressed his request for reconstruction of a segment
of 4th Avenue and stated that an additional cost will be the removal of
all of the power poles along 4th Avenue that are in the Clear Zone. He
will be talking to SPDC about accomplishing this. Cncl. Colligan suggested
requesting SPUC to put the lines underground.
Leroux/Wampach moved to direct appropriate staff to include 4th Avenue
construction between Shenandoah Drive and the north entrance to the
Racetracks in the off site public improvements for the race track.
Roll Call: Ayes; Leroux, Reinke, Wampach, Vierling, Colligan
Noes; Lebens
Motion carried.
Cncl. Wampach stated that Mr. Cavanaugh has done some work behind his build-
ing to alleviate the drainage problem. Cncl. Lebens said Mr. Cavanaugh
indicated he was not willing to pay for improvements to the alley.
Lebens/Leroux moved to drop the issue of alleviating.drainage problems in
the alley of Block 20, until there are additional concerns from citizens.
Motion carried unanimously.
Cncl. Wampach discussed with the City Engineer the concerns of a property
owner who wanted cast iron sanitary sewer pipe replaced in the reconstruc-
tion of 5th Avenue, because that is what he originally paid for.
Lebens/Wampach moved to authorize proper City officials to execute Change
Order No. 1 for the 5th Avenue Sanitary Sewer Reconstruction Project in-
creasing the contract amount by $315.66 to $137,776.17.
Roll Call: Ayes; Unanimous Noes; None Motion carried.
Colligan/Leroux moved to authorize proper City officials to execute Change
Order No. 1 for Shenandoah Drive Street Construction increasing the con-
tract au>ouut by $2,492.00 to $240,464.30.
Roll Call: Ayes; Unanimous Noes; None Motion carried.
Colligan/Leroux moved to authorize proper City officials to execute Change
Order No. 2 for Shenandoah Drive Street Construction increasing the con-
tract amount by $980.00 to $241,444.30.
Roll Call: Ayes; Unanimous Noes; None Motion carried.
Colligan/Leroux moved to authorize proper City officials to execute Change
Order No. 3 for Shenandoah Drive Street Construction increasing the con-
tract amount by $850.00 to $242,294.30.
Roll Call: Ayes; Unanimous Noes; None Motion carried.
Colligan/Leroux moved to appoint Mr. Clifford Stafford to the Board of
Directors of the Shakopee Community Access Corp., Inc. to fill the unexpired
term of Barbara Hegfors until January 31, 1985.
Roll Call: Ayes; Unanimous Noes; None Motion carried.
Mr. John Lane introduced himself to the Council and expressed his interest
in dein; appoi1,red to the Planning Commission vacancy.
Colii;an/Leljons movod to place into no111111atioTl i or Plallillilj, rl01,1111iS;,ioller
the following names: Nancy E. Christensen, Ceorge :ealander, David Pomerenke,
John M. Lane, Charles Mensing and James Weeks. Motion carried unanimously.
Colligan/Leroux moved to direct
to individuals who disregard the
forcing the City Code.
Roll Call: Ayes; Unanimous
staff to issue citations on a weekly basis
"Standard Operating Procedures" for en -
Noes; None
Motion carried.
Colligan/Leroux moved to direct staff to remove flashing red light pedes-
trian control devices from East 5th Ave. at Lewis Street and West 4th Ave.
at Atwood, and to install stop signs on all four corners of the intersection
at East 5th Ave. and Lewis Street and West 4th Ave. and Atwood Streets.
Roll Call: Ayes; Unanimous Noes; None Motion carried.
OFFICIAL PROCEEDINGS OF THE CITY COUNCIL
ADJ.REG.SESSION SHAKOPEE, MINNESOTA NOVEMBER 8, 1984
Acting Mayor Lerouxcalled the meeting to order at 5:03 p.m. with Cncl. Lebens,
Colligan, and Vierling present. Cncl. Wampach and Mayor Reinke were absent.
Also present were H. R. Spurrier, City Engineer and Judith S. Cox, City Clerk.
Acting Mayor Leroux presided in the absence of Mayor Reinke.
Colligan/Lebens offered Fees. No. 2343, A Resolution Canvassing Returns for the
Special Municipal Election, and moved its adoption. Motion carried unanimously.
Lebens/Colligan moved to authorize proper City officials to execute Change Order
Number 2 for 5th Avenue Sanitary Sewer Reconstruction increasing the contract
amount by $879.00 to $138,655.17.
Roll Call: Ayes; Lebens, Colligan, Vierling, Leroux
Noes; None
Motion carried.
Colligan/Vierling moved to authorize proper City officials to enter into an
agreement with Valley Paving, Inc. to perform the bituminous repair work at
the Eastview Fire Lane for an estimated total of $2,300.00
Roll Call: Ayes; Colligan, Vierling, Lebens, Leroux
Noes; None
Motion carried.
Colligan/Lebens moved to authorize proper City officials to enter into an agree-
ment with Valley Paving, Inc. to perform bituminous repair work at Huber Park
hestroom Facility for an estimated total of $575.00.
Roll Call: Ayes; Leroux, Vierling, Lebens, Colligan
Noes; None
Motion carried.
Lebens/Vierling moved to authorize proper City officials to enter into an agree-
ment with Valley Paving, Inc. to perform bituminous repair work on Eastview Circle
at a cost of $1,080.00, which work shall be done only if not performed by Mr. R..
Logeais. The cost of repair shall be paid for by Mr. Logeais.
Roll Call: Ayes; Vierling, Colligan, Leroux, Lebens
Noes; None
Motion carried.
Colligan/Vierling moved to adjourn to Tuesday, November 20, 1984 at 7:30 p.m.
Motion carried unanimously. Meeting aa�ournea at 5:08 p.U1.
Judith S. Cox
City Clerk
Recording Secretary
CITIES INITIALLY PARTICIPATING IN
JOINT COMPARABLE WORTH STUDY
Anoka
Maple Grove
Apple Valley
Maplewood
Blaine
Mendota Heights
Bloomington
Minnetonka
Brooklyn Center
Minnetrista
Brooklyn Park
Mound
Burnsville
Mounds View
Champlin
New Brighton
Chanhassen
New Hope
Chaska
North St. Paul
Circle Pines
Oakdale
Columbia Heights
Orono
Coon Rapids
Osseo
Cottage Grove
Plymouth
Crystal
Prior Lake
Deephaven
Ramsey
Delano
Richfield
Eagan
Robbinsdale
Eden Prairie
Roseville
Edina
Rosemount
Elk River
Savage
Forest Lake
St. Anthony
Fridley
St. Louis Park
Golden Valley
Shoreview
Hastings
Wayzata
Hopkins
West St. Paul
Inver Grove Heights
White Bear Lake
Lakeville
Woodbury
10/26/84 = 56 Cities
Notice Re:change:
MAMA is contracting with Control Data for a package that
will be personalized for each city and will cost from $5 - 10
thousand for ranking of all positions. This can be placed on a
central computer for updating or can be updated annually by
Control Data at $5 per employee. I would like Council to
reconsider its decision not to participate in this program.
association of
metropolitan
municipalities
November 15, 19814
1.0
PP U L L E -T IN
.—V ii.
x 4,.
t4oV 16 19A
'ru 'MexII-LYra'3ia�,c3'3ii►''iII1i'1?i`l3i'?=ai.^v'?3 CITY Qr �i" i'�• �s^r"�"
�
FROM: Ver Axterson, Executive Director
RE: Metropolitan and AMM Activities of Importance
-I WOULD LIKE TO BRING SEVERAL ITEMS TO YOUR ATTENTION;
1. METROPOLITAN COUNCIL'S REVISED HOUSING GUIDE; POLICY
PLAN;
The Metropolitan Council will be holding a public
hearing on Thursday, November 29, 19814 at 2:00 P.M. in
the Metropolitan Council Chambers. As reported in a
previous Bulletin, the AMM Housing Committee and Board
of Directors have reviewed the "hearing draft" document
very thoroughly and have prepared a report delineating a
number of concerns and recommendations. A copy of the
AMM report is enclosed in the Manager/Administrator
mailing only and your city should have received a copy
of the Housing Guide Chapter Draft directly from the
Metropolitan Council in late October. The AMM Board and
Housing Committee have several major concerns with the
Housing Guide Chapter and I would encourage you to
review the Housing Guide Chapter "hearing draft" and the
AMM report. I would also suggest that if you share the
AMM concerns that your city make its concerns known at
the public hearing. Also, please discuss this matter
directly with the Metropolican Councilmember from
your district. I would appreciate receiving a copy of
any written statement or correspondence you prepare for
this hearing.
2. TECHNICAL ADVISORY COMMITTEE (TAC) APPOINTMENTS:
The major functions of TAC are to provide technical
assistance, advice, and recommendations to the
Metropolitan Area Transportation Advisory Board (TAB) on
all facets of regional transportation planning. The
AMM has eight suburban appointees on TAC and they must
be at the Department Head Level (i.e. City Engineer,
-1-
10n ,..-r., , <r <+ noel minnPcnta {{l m (rl?7 2?7-5600
I would like to remind you of this very important
meeting which will be held in the Council Chambers of
the Richfield City Hall (6700 Portland Ave.). The
adoption of the Annual Legislative Program is very
important as it determines the AMM lobby efforts on
behalf of the cities in the metropolitan area. PLEASE
MAKE SURE THAT YOUR CITY IS REPRESENTED AT THIS MEETING
TO ASSURE THAT THE VIEWS OF YOUR CITY ARE REPRESENTED.
4. SURVEY OF MEMBERSHIP SERVICES!
As reported in a previous Bulletin the AMM Board of
Directors established a twelve (12) member Membership
Services Committee, Chaired by Jim Spore, Burnsville
/ City Manager, to evaluate and assess the organizations's
performance. The AMM is in its eleventh year of
operation and the Board felt it was time to directly
assess and evaluate performance to assure that we
continue to provide you with the kind of programs,
information and services that meets your needs as a city
official. The Committee has determined that to do its
job thoroughly it needs your input. Consequently, the
Committee has developed an Opinion Survey Questionnaire
which will be mailed to all Mayors, Councilmembers, and
Managers/Administrators in the very near future. WE
WOULD SOLICIT YOUR COOPERATION IN THIS MATTER AND WOULD
APPRECIATE IT IF THIS SURVEY WOULD BE MENTIONED AT A
COUNCIL MEETING AND ENCOURAGEMENT GIVEN TO ALL THOSE
RECEIVING THE QUESTIONNAIRE TO COMPLETE IT AND RETURN IT
TO THE AMM OFFICE AS SOON AS POSSIBLE. One of the
purposes of the survey is to provide an opportunity for
member city officials to help determine future
directions of the AMM.
Thank you.
-2-
Planning Director, Community Development Director,
etc.). The TAC meets monthly at the Metropolitan
Council Office and TAC members usually serve on at least
one subcommittee. The persons to be appointed will
serve two-year terms comencing in January of 1985.
THE AMM BOARD IS SOLICITING NOMINATIONS FOR TAC
MEMBERS VlA THIS BULLETIN. YOUR NOMINATIONS SHOULD BE
,i
SENT TO VERN PETERSON IN THE AMM OFFICE BY NO LATER
�S G
THAN WEDNESDAY NOVEMBER 2 TH . THE P RESENT AMM
BUT
APPOINTEES WILL BE GIVEN PRIORITY CONSIDERATION
SOME NEW APPOINTMENTS WILL BE MADE SO PLEASE FORWARD
YOUR RECOMMENDATIONS.
3.
THE MEMBERSHIP MEETING TO APPROVE LEGISLATIVE POLICY
PROGRAM - DECEMBER 6, 19 4, 7:30 P.M.
I would like to remind you of this very important
meeting which will be held in the Council Chambers of
the Richfield City Hall (6700 Portland Ave.). The
adoption of the Annual Legislative Program is very
important as it determines the AMM lobby efforts on
behalf of the cities in the metropolitan area. PLEASE
MAKE SURE THAT YOUR CITY IS REPRESENTED AT THIS MEETING
TO ASSURE THAT THE VIEWS OF YOUR CITY ARE REPRESENTED.
4. SURVEY OF MEMBERSHIP SERVICES!
As reported in a previous Bulletin the AMM Board of
Directors established a twelve (12) member Membership
Services Committee, Chaired by Jim Spore, Burnsville
/ City Manager, to evaluate and assess the organizations's
performance. The AMM is in its eleventh year of
operation and the Board felt it was time to directly
assess and evaluate performance to assure that we
continue to provide you with the kind of programs,
information and services that meets your needs as a city
official. The Committee has determined that to do its
job thoroughly it needs your input. Consequently, the
Committee has developed an Opinion Survey Questionnaire
which will be mailed to all Mayors, Councilmembers, and
Managers/Administrators in the very near future. WE
WOULD SOLICIT YOUR COOPERATION IN THIS MATTER AND WOULD
APPRECIATE IT IF THIS SURVEY WOULD BE MENTIONED AT A
COUNCIL MEETING AND ENCOURAGEMENT GIVEN TO ALL THOSE
RECEIVING THE QUESTIONNAIRE TO COMPLETE IT AND RETURN IT
TO THE AMM OFFICE AS SOON AS POSSIBLE. One of the
purposes of the survey is to provide an opportunity for
member city officials to help determine future
directions of the AMM.
Thank you.
-2-
association of
metropolitan
municipalities
PROPOSED REVISIONS
TO
HOUSING CHAPTER OF THE METROPOLITAN
DEVELOPMENT GUIDE
(Dated October, 1984)
The AMM Housing Committee and Board of Directors have
completed their review of the proposed revisions to the
Housing Chapter of the Metropolitan Development Guide. The
committee spent all or part of six different committee
meetings in the course of this review. The Housing Committee
and Board are in general agreement with the overall thrust of
the major concepts contained in the Housing Chapter, but do
have a number of concerns and offer several recommendations
for dealing with these concerns.
The committee's and board's concerns and recommendations are
contained in tyle foiio•wirig pages of t?lis re -part. SeotioTl i
contains the more general concerns and Section II contains
more specific concerns on a page by page basis.
Report Adopted By AMM Housing Committee - October 18, 1984
Report Approved By AMM Board of Directors - November 1, 1984
-1-
1R; IIni\rr- ncitN avant I P n , C * c , !'I CC101 /r-'!'1\ `7^ Gr -(1(1
criteria should only go back to the community and not be included
as part of the official review comments.
2. Influences of the Market Place on Cost and Type of Housing:
A major goal of the Metropolitan Council over the years has been
to promote more affordable housing and more locational housing
choices for persons of moderate and low incomes. The AMM has
supported that goal and continues to do so. The Housing Guide
Chapter and the associated reviews based on the Guide Chapter
conducted by the Council of local projects and proposals is the
major tool used by the Council to implement this goal. It is
important therefore, that the Council's Housing Guide Chapter and
review procedures and process be considered creditable by local
officials. The AMM by and large, agrees with most elements in
the Housing Guide Chapter but also believes it has major
deficiencies. The information and guidelines contained in the
Chapter and consequently some of the recommendations simply
do
not reflect the "real world" in terms of the effect of the market
-Pi.d-tc zn, +,.y. �, ytvv, sizes., etc. of the housing being
produced at any given point in time. City officials just do not
have as much authority and control over the cost and type of
housing being produced as implied and assumed in the Housing
Guide Chapter and; therefore, the Council's recommendations may
not be perceived as creditable. If recommendations are not
perceived as creditable, they may be ignored.
Recommendation: That a section discussing the impacts and role
of the market place on housing type, style and costs, etc. be
added to the Housing Guide Chapter.
3. Life Cycle Housing and Alternatives.
One of the major thrusts of the revisions to the Housing Guide
Chapter is to promote more attached and multifamily housing and
other alternative types of housing within the metropolitan area
and within each community. The implied assumption is that more
affordable housing will then be available and greater locational
choice present. The thrust of the revisions is that each and
every community must have a complete assortment of life cycle
housing types and housing alternatives.
The AMM agrees with the general concept that attached and
multifamily housing is more affordable although there are a lot
of exceptions because of market place influences. The AMM also
supports the concept that more "life cycle" housing is needed
within the metropolitan area. The AMM does not agree in the
literal sense, however, that each and every community must have
every type of life cycle housing. The AMM does not believe this
is either practical or necessary or even possible because of the
market place influence. Since this is a very mobile area with
-3-
adequate public transit and has a regional identity with local
political boundaries posing no real barrier, life cycle housing
can be viewed on a more regional basis.
Recommendation: That the Housing Guide draft be further
modified in several sections to advocate more of a regional or
community clustering approach for promoting and provided life
cycle housing. The Housing Chapter does recognize and advocate
that approach for replacement housing for those persons displaced
by public action.
�4. Responsibilities for Providing Housing for Lower Income Persons.
There are a number of inferences and an implied assumption that
as the federal and state levels of government decrease their
funding commitments for subsidized housing for lower income
persons, that the responsibility for picking up the slack is
automatically assumed by local units of government. This is not
fair, nor is it possible. Locals do have certain
responsibilities and techniques to provide opportunities for low
and moderate cost housing and the AMM believes that they should
do so. However, the federal and state levels of government have
much broader and deeper tax bases and they should provide the
bulk of the funding for direct housing subsides. Those levels
should not abrogate their responsibilities to provide the
necessary funding to implement their housing policy.
Recommendation: The Housing Chapter be revised to make the
distinction between providing opportunities for low and moderate
cost housing (which is a local responsibility) and the actual
provision of this housing thru subsides and other programs.
Also, the Housing Chapter and Legislative Initiatives should
clearly state the responsibility of the federal and state levels
in providing funding for subsidized housing.
5. Local Plan Monitoring.
There are several statements in the Housing Chapter and its
appendices which discuss the Council's plans to review projects
and proposals for internal consistency with local comp plans.
The AMM believes such internal monitoring is inappropriate and
inconsistent with the Council's statutory mission. The Council
has responsibility to assure consistency with regional plans,
goals and programs and its review should be directed in that
manner. The Council was not established to be an overseer or
general monitor of local government activity.
Recommendation: The Housing Guide be revised to eliminate the
statements and implications that it is the Council's role and
responsibility to monitor local activities and programs for
consistency with local plans.
-4-
Section II Specific Comments and Recommendations
1. For -Sale Housing. (pages 11-12). The AMM agrees that there is
an "affordable housing problem" for many persons, but the
background material probably overstate the problem. Since the
median represents the middle, many people with lower incomes can
still purchase housing. The AMM does not believe that
irrespective of income, it is an inalienable right for all
persons to purchase the "dream house" in the "dream location".
Nor is its Nor 's obligation to fulfill that expectation.
Also, while it is generally true that "first time" buyers are
hardest hit because of the high interest rates of recent years,
it may not be much easier for "roll over" buyer to move "upward"
in housing.
Policy on 1 page 11 is acceptable to the AMM but the background
material should be clarified.
2. Rental Housing. (pages 12-13). The AMM agrees with the policy
goal (more affordable rental units be built or added to existing
housing stock) but has reservations how this policy will be
used by the Council in "Policy 34" type reviews in terms of
accessory housing ordinances. The problem of "protective
covernances" over which the city has no control can also be a
problem.
Policy 2 should be modified and softened to recognize the
importance and desires of residents to maintain the character of
their neighborhoods and property values.
3. Reduced Housing Costs (page 14). In the background material
under lot size or density, the first sentence should be rewritten
to clarify that the lot size or density is the factor that can
most easily by influenced or controlled by a city. The AMM notes
that a correction is needed in the last paragraph on page 14. Add
the words "per acre" after units in the fourth line. In the
paragraph dealing with garages, the AMM believes it should be
rewritten, as follows: "Local land use regulations should not
require the requirection of theofrtheshouseoonvthe lot soguthatona
should requ P
garage could be built at a later date".
4. Life Cycle Housing - Trends in housing Types and Preferences.
(pages 19-20). One of the thrusts of the revised housing chapter
is to promote different types of attached and multifamily housing
to provide more affordable housing. This type of housing
probably is cheaper to build, but for some reason, it might cost
more to purchase. It is the AMM's feeling that other factors (no
maintenance, no snow shoveling, location, prestige, etc.) have
more influence on the purchase price than the cost of
-5 -
construction.
The AMM supports the basic concept of life cycle housing and
alternative housing types but believes some clarification should
be made. (see General Concerns 2 and 3). The AMM recommends
revising policy 10 on page 20 to reflect more of a regional
approach in the planning for life -cycle housing needs.
Handicapped - Accessible Housing. (page 21). The AMM has a
problem with policy 12. The policy states that funds should be
made available but does not state where this funding should come
from. The AMM believes it is the responsibility of the federal
and state levels of government to provide these funds because of
their broader tax bases.
5. The AMM has concerns with respect to policy 16 on page 25 which
introduces the "Community Index Concept." The committee believes
the Community Index might be a useful tool to serve as a guide
for local planning effort but believes there are too many
variables and unanswered questions for the Council to use this
index in a "policy 34" type review situation. (see General
Concern 1)
Recommendation: If the Council proceeds with the Community Index
Concept, it should be used as an advisory and experimental basis
initially.
6. Policy 17 on page 25. The AMM recommends tightening the wording
to reflect the federal definition of low income persons.
7. Policy 18 on page 26. The AMM does not object to this policy but
believes it mixes two different concepts into a single policy and
thereby possibly creating confusion. (concentration of
subsidized housing and the fact that design and construction for
subsidized housing should not be inferior to market rate
housing).
8. Policy 21 on page 28. The AMM concurs with this policy.
9. Policy 22. The AMM has a concern with the B. portion of this
policy (housing strategy for older developed suburbs) which
really does not define a strategy as much as it discusses tools.
This statement should be amplified to explain how the various
subsidy tools can be used to meet the needs of the lowest income
groups.
10. Page 347 background material relative to deteriorated
neighborhoods. The last sentence of the first paragraph needs to
be amplified to explain that "low quality service" does not refer
just to the services provided by the city. The AMM does not
agree with the implication that a city provides its services
M
on a selective basis.
In ThMMnot
11. Page 35, third paragraph from bottoentoeconomicandfanancial
feel it is really feasible
conditions of
cities tto o do much land banking. It is very, very
d o hold land for development sometime in the
expensive just t
future.
12. Housing Maintenance, Redevelopment and Neighborhood Preservation.
The AMM supports policy 23 on page 32•
on Mandated Housing Maintenance Code. (Page 3coThe
st to
not support this policy for several reasons:
code not needed in all cities at present time , be
if
to be a mandatory maintenance code,
it should The AMM, does
and not just in the metropolitan provided the word
to the last sentence of this policyy p
' is removed prior to the word "tax."
Policy 214
AMM does
implement,
there is
statewide
not object
"property'
Policy 25 on page 33. The
"market -rate" should be deleted
A distinction should not be
subsidized housing in terms of
AMM believes that the words
in the 4th. line of this policy.
made between market rate and
locational considerations.
Policy 26 on page t4, The AMM believes that existing state and
3 protection. There is also
federal _requirements provide necesQnapn-(-- it it may have a
-- - --���
ice as related Zo Lne rT ---- ---
i uolccpai- _t ba t concern that the way
negative rinpa��` Win^-r�b.atzilitation and clearar
Isis. deteriorated housing. The AMM does support'Li
d
considered on a regional.b,
replacement housing be
3ding the wor
and line of this
policy page 34. The AMM recommends a
27 on P g
"Persons" on the sec
,, qualified" between "to" and
policy.
13. Energy Conservation:
t of this Fcr��c,�
tached housing"
policy 29 on page 140. The AMM supports the inten
"particularly at
nce. Since most
but believes that the words
of the first sente
fficient. Also,
should be removed at the end
it should also be energy e
reduce housing
- to
housing is "detached"
attached housing
policies.
the Council's emphasizes on
dealt with directly in other
AMM recommends
costs in general is
-ion in policy 301,
t Housing Roles and Responsibility. The
14Governmentfor
;search to define
on
addition of one additional concept
forlre
1. should read ,support
of the market
on page 143. Role
and problems and the implications
housing issues
affordable housing."
-7-
oes
with respect to estadatabandhinformationghasurts beenapdrovidednto justify
that sufficient
this recommendation or this policy.
16. Housing Review Guidelines. (pages 19-30)
-General housing review guidelines. All "reviews" cost money
and therefore the committee questions if this set of review
guidelines is necessary for projects and proposals within the
MUSA. The AMM believes that the factors to be considered in
this section will be considered elsewhere in the other sets of set of
review guidelines. If the Council does keep
review guidelines, however, we do offer several concerns and
comments.
-page 2. The AMM committee believes that the Met Council
should not review . Theectreviewfor
shouldinternal
be cconducted with
local comp plans
aQtorm;nP_,�
consistency
with regional plans and goals,_ etc.(see
general concern 5.)
-page 2.
Guidelines for Accessibility of Services and
Facilities. The AMM believes the paragraphs pertaining to
schools need to be modified extensively. Cities have no
control over school closings and this statement could be at
in
odds with desegregation guidelines force
l
bussing, for
cities. Also, the distances for walking consistent with the
should be checked to see if they
guidelines established by the State Board of Education.
-page 26. Highway accessibility and Design, etc. The AMM does
not object to the statement but wants to note that compliance
with these guidelines could add to housing costs.
17. Subsidized housing review guidelines. (pages 31-38)
-Special needs. The AMM believes this criterion may be premature
since the Council is recommending that a study be done to
determine the handicapped housing needs.
-In Conflict Recommendations. (page 33) The AMM does not
support the inclusion of (See Gecaseeneral Cof itsern lconcerns with the
Community Index concept.
-Design Features. (page 37).
and Capabilities of Housing
Sponsor (page 36).The AMM does not feel the Council is
the "capabilities of
staffed to evaluate "design features" °;, and "sponsorit often
the Housing Sponsor". Also the "design
change after the Council has completed its review.
18. Community Development Review Guidelines. (page 39) The AMM
recommends eliminating the reference to the Community Index.
(See General Concern 1.).
19. Local Comprehensive Plan Housing Element Review Guidelines.
(pages 40-45) The AMM is concerned about combining Central
Cities, MUSA Communities and Freestanding Cities into one set
of guidelines. There is so much difference in concerns and
existing conditions that we question if one set of generic
criteria can deal with all issues adequately.
20. Local Housing Bond Plan Review Guidelines. (pages 46-49). The AMM
reiterates its recommendation that Housing Revenue Bond
projects and proposals originating with the MHFA be submitted
for review to the Metropolitan Council and local communities
to assure consistency with regional and local plans.
21. Community Index. (pages 54-65) General Concern 1 contains the
AMM's major concern and recommendation with respect to the
Community Index. There are also some technical type concerns
with respect to the index. A partial listing includes:
-Communities split by the MUSA line may be penalized because of
high value of houses (large lot estates) already in existence
outside the MUSA.
-The same house might have different values in different areas
due to intangible factors.
-Market Place influence on housing style types and costs.
-10-
^t1:M0 TO: Mayor and City Council
FROM: Tom Brownell, Chief of Police
RE: County/Hospital Parking Proposal.
DATE: October 24, 1983
Introduction
Council directed staff to prepare a parking proposal for the Scott
County/St. Francis Hospital area in cooperation with facility
officials.
Background
Block 57 h.is been comp] cLed and is shared by the County/Hospital
for employee parking. Block 57 has a parking capacity of 287
vehicles with 27 of the spaces reserved for physicians. St.
Francis staff between 7:00 a.m. and 3:30 p.m. totals 306 persons.
There are 150 physicians registered to practice at St. Francis.
The County staff during the hours of 8:00 a.m. and 4:30 p.m.
totals 139 employees. The County is eliminating parking in the
garage which will be reserved for County vehicles.
Both facilities have designed the remaining off-street parking
for out patient or visitor parking, however should the need arise
for additional employee parking they are willing to shift the
visitor off street parking to employee parking.
Due to construction workers presently using bath on street and
Block 57 parking it is difficult to determine the exact parking
needs .it this time. To encourage employees to use off street
parking it is recommended that on street parking be designated
two hour parking between the hours of 8:00 a.m. and 6:00 p.m.
which should encourage hospital employees reporting to work at
3:00 p.m. to use off street parking.
Due to the cost factor of $25.00 for one parking sign and post,
excludinglabor, two signing plans are proposed. Three signs per
block are the minimum recommended.
Alternatives
1. 81 signs, cast $2,025, w^vld �srav�_de for controlled parking
on the following streets.
a. 4th Avenue, north/south side from Lewis to Apgar Street and
5th Avenue, north/south side from Holmes to Apgar Street.
b. Holmes Street, east/west side from 3rd to 5th Avenue.
C. East/west side, Fuller, Atwood, Scott Street from 4th to
5th Avenue.
d. To be implemented upon the completion of County building.
County/Hospital Parking Proposal
-Page Two
October 24, 1983
2. 120 signs, cost $3,000, would be an expanded version of alter-
native 1 with the following additions.
a. Holmes Street, west side from 5th to 6th Avenue.
b. Fuller, Atwood, Scott, east/west side from 3rd to 4th Avenue.
C. Fuller, Atwood, Scott, east/west side from 5th to 6th Avenue.
d. To be implemented upon the completion of the County building.
3. Do not sign area and allow employees, visitors and residents
to park in available spaces.
4. Hold a public hearing to obtrii n input f) -()m :i ) -c,-) res i denLs .
Recommendation
Staff recommends alternative No. 1.
Action Requested
Direct staff to implement alternative No. l:
81 signs, cost $2,025, which would provide for controlled parking
on the following streets.
a. 4th Avenue, north/south side from Lewis to Apgar Street and
5th Avenue, north/south side from Holmes to Apgar Street.
b. Holmes Street, cast/west side from 3rd to 5th Avenue.
C. East/west side, Fuller, Atwood, Scott Street from 4th to 5th
Avenuc.
d. To be implemented upon the completion of County building.
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i
TO: John K. Andrson, City Administrator
FROM: Jeanne Andre, Community Development Director
RE: Preliminary Review of Housing Alliance
Tax Increment Application
DATE: November 16, 1984
Introduction:
The Housing Alliance has been working with the City staff to
review all elements of the feasiblity of their proposed senior
housing project in downtown Shakopee. One significant element is
the financial feasibility. The Housing Alliance has done two
market analyses and drawn together preliminary cost figures to
submit a preliminary application for Tax Increment Financing
Assistance. The Housing Alliance representatives wish to reach
a preliminary agreement with the City on the type and amount of
public assistance the City would consider providing to make this
project work before they proceed with detailed drawings and
additional planning.
Background:
Attached for Council review are the following items regarding
this review:
1) Cover letter from Larry Smith of the Housing Alliance.
2) City's Application for Tax Increment Financing Assistance.
3) Housing Alliance Preliminary Submission Information.
4) Cover letter to the October 1984, Market Study by Maxfield
and Solomonson.
5) Preliminary financial analysis by Bob Pulscher at Springsted,
Inc. ef
The Housing Alliance also submitted full copies4the August and
October market studies it commissioned for this project, which are
on file at City Hall. Due to their length they are not included
with this memo.
The basic proposal by the Housing Alliance is the construction
of 40 units, 20 rental and 20 condominium on Lots 4, 5, 6 & 7;
Block 32 of the original Shakopee plat. The Housing Alliance would
like to package their proposal in two phases, the first 20 units of
rental and the second 20 condominium units. They anticipate both
would begin construction in 1985. Although the proposed project is
high density, only 2 - 3 story structures are proposed.
Page two
Following the City's procedure for consideration of tax
increment financial assistance the following steps have been
taken:
1) Preliminary project review occurred with input by the
City Engineer, Building official, Planner, Administrator,
HRA Director and Public Utilities Manager. The following
issues were raised, which the Housing Alliance is comfort-
able addressing in its development proposal:
a) A multiple dwelling structure requires a
conditional use permit if constructed in
in a B-3 zone.
b) There are set back requirements from
adjacent R-2 zones and a 45 foot height
limitation.
c) It is unclear if park dedication would
be required.
d) Buildings must be identified as condominium
or rental units when constructed.
e) Storm sewer construction including signifi-
cant curb and gutter replacement are necessary
to construct the project.
f) The project would have future storm sewer and
streetscape assessments.
g) The developer needs to conduct soil borings to
determine depth of limestone to accomodate pro-
posed underground parking.
h) Access to underground parking should be located
to minimize potential traffic safety problems.
i) Testing must be conducted to determine the
adequacy of existing water pressure flow to
meet sprinkler system requirements.
2) The City's fiscal consultant has reviewed the preliminary
figures and determined that the developer's fiscal assump-
tions are reasonable and that the requested assistance
could be provided by a tax increment district of approxi-
mately nine years in duration.
3) The City Council is now requested to give preliminary
review of the data submitted so that the applicant can
determine if it wants to proceed with a formal application.
The City Council can request additional information to
undertake its review, but should realize that approval at
this point is preliminary and would set into play a series
of detailed negotiations and documentation. The basic
decision needed from the City Council at this point is
it wants to encourage the developer to proceed with this
!_;
Page three
project given the level of public support that
has been requested.
The developers request is that the City write down the cost
of the land $125,000 for each 20 unit project, and write down the
cost of the park dedication, if any is required. Based on previous
discussions with staff the developer has set the park dedication at
$21,000 per 20 unit structure, but staff have since discovered that
the cost would be closer to $7,700, and there are serious questions
as to whether a park dedication would be charged at all. It is
therefore recommended that the City Council just address the question
of land write down at this time, and defer discussion on the question
of park dedication until the issue is researched further.
Based on the preliminary review by the fiscal consultant, the
requested assistance could be provided in a district of nine years
in duration. In the Downtown Plan adopted by the City Council it
was recommended that developments that occur downtown should seek
to utilize tax increment funding to support elements of the total
downtown plan. When a developer seeks tax increment support to
make a project work, it was recommended that the rule of thumb
standard should be to provide up to 40% of the increment available
for assistance needed by the development and leave the remaining 600
for overall downtown project elements. Given that a housing tax
increment district can last up to 25 .-years, it appears that this
criteria can be met.
In reviewing this proposal the City Council should determine
whether it desires to work with the developer over special consider-
ations desired by the Council. Examples of such considerations could
include 1) a desire to have Fuller Street adjacent to the proposal
serve as the initial site for streetscape improvements, 2) desire
to have the Housing Alliance work with the City to consider possible
future expansion of this project, 3) desire to have the Housing
Alliance work with the City on possible block grant applications, or
4) other considerations introduced by Council members.
Alternatives:
1) Give preliminary approval to the Housing Alliance request
for tax increment assistance in the form of a $125,000
land write down per 20 unit structure.
2) Give preliminary approval as in number one above, with
additional stipulations or considerations.
3) Request additional information before before further
consideration of the preliminary approval.
4) Deny request for preliminary approval.
Requsted Action:
Give preliminary approval
for tax increment assistance in
down per 20 unit structure.
Enclosures
to the Housing Alliance request
the form of a $125,000 land write
22 November 1984
fvOV i 1984Ar
%
Mr. John Anderson
v{TY 0= SHAi\OPEE
City Manager
E V Shakopee City Hall
AW 129 East First Street
Shakopee, Minnesota 55379-1376
Dear John:
The enclosed pro forma represents our best understanding of future
construction costs, market demand and project timing. We are
predicting a spring construction start on a 20 unit rental project
and a fall construction start on a 20 unit condominium project.
James B. McComb and Associates, economic and develompent advisors
have prepared the pro formas which we are submitting. The figures
which are allocated to various development costs are based on their
advice representing industry standards.
We reserve the right to adjust the pro forma numbers if we
experience conditions in the future which differ from the
anticipated construction costs or associated development costs.
We are prepared to present these numbers to the city council for
their review and approval. If there is a concensus that this
project has merit and the city is willing to assist the development,
we will proceed with preliminary drawings for neighborhood and city
review.
There are a number of issues which we need to be resolved after city
approval. Negotiations will be undertaken to secure land control,
and the city must resolve the storm water run off condition to
render the proposed site developable.
A®® Please advise us if you have any questions concerning the enclosed
id VL information. We look forward to proceeding with our proposal as
soon as possible.
Sincerely,
Housing Alliance
HO SING ALLIANCE, INC.
200 Butler North
510 First Avenue North Z4,
Minneapolis, MN 55403
612'339-6122 Larry Smith
Vice esident
vjl
Enclosure
cc: Arvid Elness
Gene Holderness
Dick Larson
CITY OF 4HAKOI'EE
APPLICATION
TAS iNCRE`�ti'T r NALJCING ASSISTA.:dCE
3A - C;R0L'i�i INFORMATION
Legal name of applicant:
Address:
Telephone number:
Name of contact person:
DISTRICT I:I"ORMATION
Addendums shall be attached hereto addressing in detail:
1. Location - include a location nap with exact boundaries of
projected development as proposed.
2. Size - describe the size of the proposed project in terms of
acres. Show parcel boundaries, if known.
3. Use - describe the proposed uses for the property, by parcel,
if known.
4. Value - list the estimated market value to result from the
project by year and by parcel, by building or other appropriate
spatial subdivision.
C.J
liming - describe the timing of the development improvements.
o, public improvements - identify the public improvements reauested
to be financed through the district and the timing or such
improvements.
Imract -
g • lain wn'7 the i=rovemen� is not cite :.-.a-- would
to the extent feasible, identify:
a.
b.
c.
New jobs to be created.
Valuation to be added.
Other assets to accrue to the co=unity.
g, Tra_=ic
- to the extent feasible, identity:
a.
b.
c,
Projected vehicle counts caused by development o-
the district.
ImDact on existing traf=ic arteries.
?lan fcr traffic flow.
Need i eti,� ed by the ?rrti'ate ;eve:oiler and why =he -ssts
nc- a 1 '7 be ;.* : an. c , _
Cy -:!.-e i.;Dr�`7e:'le:7t C.nOt be paiC JV she a'�Dr�ca::t
he-_- _ ~o -rat_or. 7cu =ae_ �a.7 ass_st
1 ^� _ .C��1T�Ti✓�T �rC� r.:e r1iT '/
COUNCIL POLICY STATEMENT
CITY OF SHAKOPEE
Subject: Review of Tax Increment Redevelopment Projects
There are three types of Tax Increment Financing (TIF) Districts:
Redevelopment, Low & Moderate Income Housing and Economic Develop-
ment. Shakopee has elected not to make TIF available for any type
of low and moderate income or conventional housing unless it meets
Redevelopment Project Criteria outlined in this Policy Statement
on
e land). TIF
(i.e. EconomicaDevelopmentrProjects underrs vil-
a separate, butsimilar,
able foror lar,
Policy Statement.
Minnesota statutes place the responsibility for redevelopment pro-
jects with housing and redevelopment authorities. Under Minnesota
statutes, however, the redevelopment and tax increment financing
plans of the authority must be approved by the City Council. In
addition, the financing of such projects requires the active involve-
ment of the City. As a result, it is necessary that the City have
a policy in regard to these projects.
The purpose of this policy statement is to establish the City's posi-
tion with respect toofthe aXrOcessinncrefr, and the creation
mentofinancing sdistricts for redevelop -
and implementation ,
ment purposes.
STATEMENT OF POLICY
Applicability
It is the policy of the City of Shakopee to remove, prevent, or reduce
blight, blighting factors or the causes of blight (M.S.A. 462.421,
Subd. 13) in order to protect property values and the tax base of the
City. For those purposes it may be necessary to create tax increment
redevelopment districts ilected redevlopmentsof costshforlty privaaetdevelop-
public improvements or publice
ments within such districts.
Creation of tax increment redevelopment districts or requests for tax
increment funding of improvements may come as the result of
frcity ini-
tiative, Housing and Redevelopment Authority action,
orae
proposal. It is in the public interest that the creation of tax .
increment districts and the financing of improvements with tax incre-
ments be made only after the City has been fully informed concerning
the proposal and its current and future prospects, and has been able
to thoroughly investigate it. Where a company or individual is
requesting creation of a tax increment district or the financing of
improvements via tax increments, that company or individual will be
required to furnish certain information needed for such investigation
and will be required to assume the costs of the City's efforts.
It shall be the expressed intent of the City to expedite to the great-
est extent feasible the processing of all requests for the app
-2 -
of tax increment projects so that no undue delays are experienced
by the applicant. However, nothing herein shall be construed as
representing a commitment on the part of the City to create tax
increment districts.
Policy
The following policies will be observed in the Council's considera-
tion of the approval of tax increment projects:
1. Benefit to the City: For purposes of determining benefit of a
proposed tax increment district or project, both its estimated
economic and other benefits shall be considered: (1) The economic
benefit is the increased tax base that will result, not only in
terms of the absolute increase in the tax base, but also with
respect to how great an increase will be received from a given
public investment; (2) Equally important is the contribution the
proposal makes to eliminating blight, preventing the spread of
blight, or supporting other parts of the redevelopment plan that
achieve those ends; and (3) The removal of particularly detri-
mental land uses or buildings, or the provision or especially
needed services or types of development are benefits that will
be considered in evaluating requests.
2. Character of Improvement: A viable project should typically be
able to pay the cost of streets, utility service, site prepara-
tion, etc. It is recognized, however, that redevelopment pro-
jects often involve extraordinary costs not associated with
typical development projects. Examples of such extraordinary
costs include: (1) cost to acquire property, relocate building
occupants and remove existing structures; (2) costs associated
with changing the image of a declining area; and (3) costs to
relocate or realign existing public utilities or streets. In
determining improvements to be funded with tax increments, the
City will consider the extent to which these improvements are,
or are not the result of circumstances, in fact unique to a
redevelopment situation (i.e. circumstances not found in typical
development).
3. Demonstration of Need: A request for tax increment financing
shall demonstrate that feasible alternative financing is not
available and that the assistance applied for is needed in the
amount requested. The developer will be asked to submit a
proforma, an estimate of the costs and revenues of the project,
the amount of private capital in the project, and other informa-
tion as deemed essential for analysis by the City. Such analysis
will either be made by Staff or through the City's financial con-
sultant when considered necessary. An applicant who is not
willing to provide this information to the City should not make
a formal request for tax increment financing assistance.
4. Size of the Project: Because of the time and cost involved in
analyzing a request for tax increment financing, and because
tax increment financing should only be used in those instances
where the project will have a demonstrable positive impact on
-3-
/I 6 -_
on the community as a whole, requests for tax increment financ-
ing of less than $100,000 will not be considered as a general
rule. A request of this minimum size would require a redelop-
ment to increase the market value of the property by $1,000,000
assuming the 10 -to -1 ratio noted above.
5. Project Certainty/Financial Guarantees: In addition to the other
factors, favorable consideration for tax increment financing will
be based on: (1) When the development is expected to occur; (2)
The demonstrated capacity of the applicant to successfully com-
plete the development, and (3) The certainty that the tax incre-
ments will be received.
Tax Increment Revenue Bonds, rather than General Obligation Bonds,
will be used to fund improvements to be repaid with tax increment.
Applicants for tax increment financing of improvements will be
required to sign an acceptable written agreement setting forth
the responsibilities of the applicant and the City with respect
to the project. The performance of the applicant under such
contract shall be supported by presentation of a financial guaran-
tee in the form of an irrevocable letter of credit.
Prncedilre
The following procedures will be utilized in reviewing tax increment
financing proposals:
1. A written request shall be submitted concurrently to the City
Manager's office and to the Executive Director of the Shakopee
Housing and Redevelopment Authority by the person or firm re-
questing the City and HRA to utilize their tay increment financ-
ing capacity. The request shall contain, at a minimum, the
information in the pre -application form.
2. Upon submission the request shall be reviewed by a committee
consisting of the City Planner, City Engineer, Public Works
Director, Utilities Director, City Assessor, Finance Director,
and HRA Executive Director and chaired by the City Administrator
to determine, on a preliminary basis, whether the proposal appears
to be feasible.
3. The application and supporting financial data shall be submitted
to the City's Financial Consultant for review.
4. The preliminary proposal shall be placed on the next regularly
scheduled agendas of the HRA and of a City Council Work Session
for their preliminary review. At those times, the developer
may make a presentation, and Staff will make preliminary comments
concerning the perceived feasibility of the project.
5. Based on the preliminary review, the applicant may elect to file
a formal application with the City, accompanied by a fee of $500.
6. Upon the filing of a formal application, Staff shall proceed to
complete a tax increment financing analysis which shall examine
in detail the proposal's financial viability (which may include
a full appraisal by Staff or M.A.I.), and benefit to the commu-
nity as outlined in the policies above.
-4-
7. The developer shall attend at least one (1) meeting with resi-
dents and property owners in and within 500 feet of the proposed
tax increment district conducted by the City Council and HRA.
8. After the meeting noted in Step 7 and upon completion of the
tax increment financing analysis, a recommendation will be made
to the City Council and HRA. Based upon that recommendation,
the Council and HRA may authorize the Staff to commence negotia-
tion of a redevelopment project.
9. Negotiation of the redevelopment contract prepared by the HRA
occurs.
10. During the negotiation of the redevelopment contract, a tax
increment financing plan and redevelopment plan will be prepared
by Staff with notification being provided to Scott County and
the School District, if such plans have not already been adopted.
11. If a redevelopment plan is needed, such plan shall be transmitted
to the Planning Commission for review and comment.
12. The HRA will be asked to approve a redevelopment contract and a
tax increment financing plan and redevelopment plan in the event
such plans are needed.
13. The City Council will be asked to approve the redevelopment con-
tract and, if necessary and after the appropriate public hearings
(noticed via published notice and notice mailed to property
owners in and within 500 feet of the proposed district), a tax
increment financing plan and redevelopment plan.
14. The adopted plans will be filed with Scott County and the State
of Minnesota.
15. Tax increment bonds are issued.
/ Ct
RESOLUTION #/i� /
A Resolution Approving and Adopting Certain Tax Increment Policies
WHEREAS, The Shakopee City Council has spent considerable time considering
the adoption of certain policies in connection with tax increment redevelop-
ment projects and has determined upon the adoption of certain policies in dealing
with such projects;
NOW, THEREFORE, BE IT RESOLVED BY THE SHAKOPEE CITY COUNCIL That the tax
increment policies set forth in the attached Exhibit A are hereby made a part hereof
and adopted by the Shakopee City Council effective as of the date of this resolution.
A
-y
Passed in c session of the Shakopee City Council held this
day of 1981.
Mayor of the City of Shakopee
ATTEST: 1
� J� — 2
'\JCity Clerk
Prepared and approved as to form this
14th day of May, 1981
1\
City Attorney....—,,--
SHAKOPEE SENIOR PROJECT ASSUMPTIONS
Page one
Rental
Condo
Independent
Independent
Seniors
Seniors
Site Location
Wampach
Wampach
Number of Units
20
20
Average Unit Price
N/A
$65,000
Project Value
$1,300,000
$1,300,000
Enclosed Parking
20
20
Land Cost
$125,000
$125,000
Construction Date
1985
1985
Tax Year
1986
1986
Tax Income Year
1987
1987
Retal Rates
$550/month
Page one
WHY IS TAX INCREMENT PARTICIPATION NECESSARY FOR SENIOR HOUSING IN
SHAKOPEE?
Shakopee Senior Housing Market: A detailed market analysis and survey
by Maxfield & Solomonson, Inc. dated August 1984, clearly defines
affordable housing to the Shakopee community as follows:
Our analysis has shown that close to 80 percent of all study
area seniors own their own homes and have equity with which
they could afford senior housing. Also, many of these seniors
live alone. Lower home values preclude development of luxury
housing and we recommend that most units be priced from $55,000
to $70,000. A few units priced up to $85,000 may be feasible.
These prices would allow for one and two bedroom units of 600
to 800 square foot, small but acceptable units. Rents for
these units could range from $500 to $650 per month."
HOW MANY SENIORS WILL BE ABLE TO AFFORD TO BUY A SENIOR CONDOMINIUM?
The objective of the steering committee and the Housing Alliance is to
keep the Shakopee condominiums affordable to the majority of Shakopee
seniors. Maxfield & Solomonson, Inc. has recommended the size and price
of the units the residents can afford in page 9 of their study. The
average selling price they recommended is $65,000.
WHAT IS THE AVERAGE EXPECTED SELLING PRICE FOR SHAKOPEE SENIOR
CONDOMINIUMS?
Without tax increment assistance, the cost to seniors will average about
$75,750 plus parking.
Page two
HOW MUCH TAX INCREMENT ASSISTANCE IS NEEDED?
Average Project Price Without Assistance: $75,750
Average Price Affordable to Most Shakopee Seniors: $65,000
(see attached page) $10,550
Approximate Tax Increment Assistance Requested by
this Agreement: $ 6,250
Reduction in Associated Development Costs $ 4,300
Effective Cost Reduction to Seniors: $10,550
Approximate Selling Price of the Shakopee Condominiums: $65,400
DOES THIS SELLING PRICE REPRESENT REASONABLE INDUSTRY STANDARDS FOR A
PROJECT OF THIS TYPE?
The attached project pro forma demonstrates the modest returns generated
by the project. These figures reflect acceptable industry standards.
Page three
SHAKOPEE SENIOR HOUSING
PROJECT FEATURES AND ASSUMPTIONS
Estimated Average Sales Price Per Unit: $65,400
Average Unit Size: 800 sq. ft.
Estimated Cost Per Covered Parking Space: $4,500
(included in unit price)
Total Number of Units: 20 Rental
20 Condominiums
Construction Cost (Including Site Development): $45/sq. ft.
Land Cost: $125,000 Wampach Property
$125,000 Wampach Property
Page four
/ / "'
SHAKOPEE
SENIOR HOUSING
COMPARATIVE COST PROFORMA
(20 Unit condominium or rental
project)
City
Market Rate
Assistance**
$ 125,000
$ -0-***
Land
Construction Cost
845,000
845,000
22,100
Utilities
22,100
21,000
-0-***
Park Dedication
Legal & Architectural
45,500
45,500
25,400
Contingency
25,400
90,900
78,480
Marketing
16,000
14,000
Finance Fees
14,000
14,000
Closing Cost
130,000
110,000
Interim Interest
Total Cost
$1,334,900
$1,154,480
Overhead Risk & Profit
$ 180,000
$ 153,520
Sales Price
$1,515,000
$1,308,000
*Cost Per Unit
$ 75,750
$ 65,400
*Cost Per Unit is based on maximum stated cost goals and
minimum profit overhead objectives.
**Estimated project costs with City Assistance. Some items
are reduced due to improved risk and carrying costs and are
not requested from the City directly, but are instead an
indirect benefit.
***Requested City Assistance.
Page five
•
• V/
t• 10 ,o,t
0
�O
T �
��r J
l:�
� Maxfield & Solomonson
IOctober 30, 1984
The Housing Alliance
510 First Avenue North
Minneapolis, Minnesota 55403
Dear Sirs:
We are pleased to deliver Phase II of our Market Feasibility Study. The
purpose of the second phase was to survey residents in Shakopee and adjacent
communities to learn their potential interest in the proposed housing
development.
The strong response to the survey, particularly from Shakopee residents, and
the interest in the project shown by those who responded, support development
of your proposed project. The survey identified 88 residents of Shakopee and
48 residents of adjacent communities who are interested in your project.
Close to one in five would consider moving into this project within the next
three years.
Interest in this project was centered around seniors who desired rental
housing in a non—institutional and independent setting. These persons are
most likely between 60 and 75 years of age, own a home of modest value, and
have modest incomes. This suggests development of modest rental housing. Our
J recommendations as to unit size, pricing and amenities for the development are
contained in the body of this report.
Since most seniors interested in the project own a home, a strong resale
housing market will be important to your project. If seniors interested in
your project cannot move from their homes, the project will not be successful.
Offering below market financing for seniors' homes or other incentives will be
important.
We are pleased to have completed this research for you, and have enjoyed being
involved in the development of your project. If you have any questions about
our report, please give us a call.
Sincerely,
MAXFIELD & SOLOMONSON, INC.
1 Lee A. Maxfield
1
LAM:dlj
Attachment
Maxfield & Solomonson, Inc/620 IGckemick Building
430 First Avenue North/Minneapolis MN 55401/Phone (612) 338-0012
SPRINGSTED
INCORPORATED
PUBLIC FINANCE
ADVISORS
15 November 1984
Mr. John Anderson, City Administrator
Shakopee City Hall
129 East I st Avenue
Shakopee, Minnesota 55379
Dear Mr. Anderson:
We have reviewed the application for tax increment assistance from Housing
Alliance, Inc. relative to a senior housing project involving 20 market rate
rental units and 40 homestead units. Based on that review we have the
following general conclusions:
I. The proposed rental and sales rates for individual units appear
reasonable based on our knowledge of similar projects in the
metropolitan area.
2. Assuming the accuracy of the pro forma statement on proposed
project expenditures, the requested level of $350,000 of tax
increment assistance appears reasonable.
3. In order to provide increment assistance of $350,000, it would be
necessary for the City to issue $435,000 of general obligation tax
increment bonds; which issue would consist of the following costs:
Net Bond Proceeds $350,000
Capitalized Interest 58,725
Costs of Issuance 10,000
Discount 8,000
Planning and Administrative 81.275
Total $435,000
4. Based on project values provided by Housing Alliance, Inc., if the
structure were valued at market rates, an increment estimated at
$103,920 would be available for use in recovering public
redevelopment costs. If that level of tax increment were
available fully for debt service it would permit amortization of an
issue as shown in the attached Exhibit 1.
800 Osborn Building, Saint Paul, Minnesota 55102 (612) 222-4241
250 North Sunnyslope Road, Brookfield, Wisconsin 53005 (414) 782-8222
PROJECT: SHENANDOAH DRIVE
PERIOD ENDING: OCTOBER 31, 1984
Item I
No. I Contract Item
--------- I-----------------------
22101.511 1Clear and Grub Roadways
1
2104.501 (Remove Barbed Wire Fence
I
2105.501 (Common Excavation
i
I
2105.503 (Rock Excavation
I
I
2105.535 (Salvage Topsoil
I
1
2211.501 (Aggregate Base,
!Class 5 (100% Crushed)
I
1
2221.501 !Aggregate Shouldering,
(Class 1
[
I
2331.504 iBituminous Material
Ifor Mixture
I
1
2331.510 [Binder Course Mixture
I
1
2341.504 !Bituminous Material
Ifor Mixture
1
1
2341.508 (hearing Course
(Mixture (Modified)
1
2501.511 112° CM Pipe Culvert
I
I
2501.511 118° CM Pipe Culvert
1
i
2501.515 112° CM Pipe Aprons
I
1
2501.515 118' CM Pipe Aprons
I
ESTIMATE NO. 1
CONTRACTOR: BUESING BROS. TRUCKING, INC SHEET NO. 1
I�
I�Unit I
Contract
(
Current Period I
Total to
Date !
I Unit
I Price I
Quantity I
Amount (
Quantity I
Amount I
Quantity I
Amount !
I------I---------I----------(---------------I----------I--------------(-------1
IL.S.
187,580.80 i
1.00 I
$7,500.00 I
1.00 i
$7,500.00 !
--------
1.00 1
------�
$7,500.00 !
IL.F.
I
1 $1.00 1
I I
260.00 1
I
$260.60 1
I
260.00 f
I
$260.00 (
I
260.00 1
I
$260.0e 1
I
IC.Y.
I I
1 $2.15 1
I
25700.00 1
I
I
$55,255.00 1
I
I
25000.00 1
I
I
$53,750.00 1
I
I
25000.00 1
I
$53,750.00 1
I
1C.Y.
I
I I
1 $15.00 1
( I
I
180.00 1
I
I
$1,500.00 1
I
I
800.00 1
I
I
$12,0100.00 1
I
!
800.00 1
I
$12,000.00 i
I
1C.Y.
1
I I
1 $0.95 1
I I
I
19000.00 1
I
$18,050.00
I I
1 15000.00 1
I i
I
$14,250.00 1
I
!
I
15000.00 1
I
!
$14,250.130
I
ITon
I
I l
1 $5.45 1
I I
I
5750.00 1
I
$31,337.50
I I
f 0.00 1
f 1
$0.00 1
!
0.00 1
I
$0.00
I
ITon
I
I I
1 $6.00 1
1 I
I
1200.00 1
!
$7,200.00
I i
1 0.00 1
I !
I
I
$0.00 1
I
0.00 1
! !
! !
$0.00
I
I
ITon
I
I {
! !
f $190.00 1
I I
I
I
87.00 1
I
$16,530.00
I
! I
1 0.00 1
I l
$0.00
I !
! 0.00 !
I !
$0.00
ITon
! I
1 $10.90 1
I
1932.00 1
$21,058.80
I I
1 0.00 1
$0.00
! !
1 0.00 1
! !
$0.00
I
ITon
I
I I
1 $200.80 1
I I
I
118.00 1
f
$23,600.00
! !
1 0.00 1
!
$0.00
1 0.00 !
( !
$0.00
ITon
1 $11.00 1
1932.00 1
$21,252.00
1 0.00 1
$0.00
( 0.00 1
$0.00
IL.F.
1 $15.00 1
67.00 1
$1,005.00
1 67.00 1
$1,005.00
1 67.00 1
$1,005.00
I
IL.F.
I
I 1
1 $17.00 1
I I
I
157.00 1
I
$2.669.00
I I
1 195.00 1
I !
$3,315.00
I !
1 195.00 1
I I
$3,315.00
!
lEa.
I
I I
1 $85.00 1
1
I
2.00 1
I 1
$170.00
I I
1 2.00 1
! I
$170.00
I I
1 2.00 1
! I
$170.00
lEa.
1 $100.00
1 4.00 1
I
$400.00
1 6.00 1
$600.00
1 6.00 1
----
$600.00
------
PROJECT: SHENANDOAH DRIVE
PERIOD ENDING: OCTOBER 31, 1984
Item t
No. I Contract Item
1-------------------
2506.511 (Reconstruct Manholes
I
2575.501 (Roadside Seeding
t
2575.502 (Seed Mixture No. 5
I
2575.505 (Sodding
I
1
2575.511 (Mulch Material, Type 1
1
I
2575.519 1Disc Anchoring
I
1
2575.531 1Commercial Fertilizer
(Analysis 10-20-30
I
I
504.603 (Relocate 124 Watermain
I
ESTIMATE NO. 1
CONTRACTOR: BUESING BROS. TRUCKING, INC SHEET NO. 2
i I
Unit I
Contract
I
Current Period I
Total to Date
I Unit I
Price I Quantity I
Amount I Quantity
I
Amount I Quantity
I
I
Amount
IL.F. 1
I I
$110.00 1
I
13.60 1
I
I1
$1,496.00 1
I
13.60 1
I
- ---------I---------------t
(1,496.00 1
I
13.60 1
I
$1,496.00
I
I I
(Acres 1
I I
I
$200.00 1
I
I
3.60 1
I
I
$720.00 1
I
I
0.00 1
I
I
$0.00 1
I
I
0.00 1
I
$2.02 !
I I
ILbs. 1
I I
I
$3.00 t
I
I
180.00 1
I
I
$540.00 1
I
I
0.00 1
I
I
$0.00 1
I
I
0.00 1
I
$0.00 i
i
I I
IS.Y. 1
I i
I
$1.25 I
I
I
2222.00 1
I
I
$2,777.50 1
I
I
0.00 1
I
I
$0.00 1
I
I
0.00 1
I
$0.00
I
ITon 1
I I
$140.00 1
I
7.20 1
I
$1,008.00 1
I
0.00 1
I
$0.00 1
I
0.00 1
I
$0.00
I I
(Acres 1
1
$100.00 1
I
3.60 1
I
$360.00 1
I
0.00 I
I
$0.00 1
I
0.00 1
$0.00
ITon 1
$350.00 t
0.81 1
$283.50 1
0.00 1
$0.00 1
0.00 1
$2.00
! I
IL.F. 1
! I
I
$23.00 I
I
{
1000.00 1
t
I
$23,000.00 1
I
I
1000.00 1
I
!
$23,000.60 1
1
I
1000.00 1
1
$23,000.00
TOTAL - I
$2371972.30 I
TOTAL 1
$117,346.00 1
TOTAL 1
$117,346.00 ;
Change Order No. 1
Hauling Boulders $3 .50/C. Y.
Change Order No. 2
Ballroom Water Service
Change Order No. 3
12" Gate Valve
712 C.Y. $2,492.00 712 $ 2,492.00
L.S. 980.00 L.S. 980.00
L.S. 850.00 L.S. 850.00
GRAND TOTAL $121,668.00
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TO: John K. Anderson, City Administrator
FROM: Jeanne Andre, Community Development Director
RE: Appointments to Downtown.Committee
DATE: November 15, 1984
Introduction:
Now that they are entering the implementation stage of
the Downtown Project. Downtown Committee Members have considered
the recruitment of new members.
Background:
Resolution No. 2112 Expanding the Membership on the Downtown
Ad Hoc Committee and Amending Res. No. 1822 indicates that the
Downtown Committee can have up to 20 voting members. They currently
have 10 voting and 4 ex officio members. The Committee has talked
with various members of the downtown community and has two people
who have expressed an interest in serving on the committee. They
are Dick Stoks and Terry Forbord. The committee has therefore
recommended that you appoint these persons to serve on the Committee.
Recommended Action:
Nominate Dick Stoks and Terry Forbord to serve on the Downtown
Committee, with appointments to be made December 4, 1984.
Requested Action:
Nominate Dick Stoks and Terry Forbord to serve on the Downtown
Committee.
JA:tw
MEMO TO: John K. Anderson, City Administrator
FROM: Judith S. Cox, City Clerk—,C--
RE: Appointments to Expiring Terms on Boards and
Commissions
DATE: November 15, 1984
Introduction and Background
It is time to start advertising to fill expiring terms on various
Boards and Commissions. Individuals whose terms are expiring
have been contacted and most are interested in being reappointed.
Should we advertise for all expiring terms or just those where
the current members do not wish to be reappointed?
Expiring Terms
Energy & Transportation
Dave Dunwell
Bob Ziegler
Cable Commission
Lee Davis
Janet Williams
Planning Commission
John Schmitt
ICC
Gary Eastlund
Paul Wermerskirchen
Community Services
Bob Ziegler
Police Civil Service
Virgil Mears
? Will advise Tuesday night
Yes
Yes
? Out of town
? Will advise Tuesday night
? Out of town
Yes
Yes
Yes
Alternatives
1. Advertise for all openings.
2. Advertise only for openings where current members do not
wish to be reappointed.
If the City advertises for all openings and appoints current
members, the residents may become reluctant to apply for openings
in the future whenever an incumbent is interested in reappointment.
On the other hand, someone more qualified than an incumbent
may apply.
Action Recommended
Direct staff to advertise for [(1)all] openings on various boards
and commissions to fill terms expiring February 1, 1985 [(2)only
where the incumbent is not interested in reappointment].
JSC/jms
/J)S
MEMO TO: John K. Anderson, City Administrator
FROM: Judith S. Cox, City Clerk
RE: Recording of City Council & Planning Commission Meetings
DATE: November 15, 1984
INTRODUCTION:
With the Shakopee Community Access Corporation taping Council
meetings, the question has arisen as to whether or not the City
should be using video tapes or audio cassettes for recording meetings.
BACKGROUND:
The City is currently taping Council meetings which are being
kept for 15 years (per Council direction). Planning Commission
tapes are being kept for one year. Cable Commission, Energy and
Transportation and Downtown Committee meetings are taped, but are
not kept after the minutes have been approved.
The two cassette recorders we purchased within the past year
have both been repaired once and one is currently in need of
repair.
ALTERNATIVES: see attached
CONSIDERATIONS:
1) The need to go back and listen to a tape is infrequent
and the audio tape is adequate for our needs.
2) Video taping would be nice to have, especially of public
hearings and presentations when the over -head projector
or maps are used.
3) If itis decided to video tape Council meetings, the
cassette recorder should still be repaired for the
taping of other meetings which are not video taped.
4) If it is decided to video tape Council meetings, I
would recommend starting at the 1st of the year.
RECOMMENDED ACTION:
a) 1st choice - Repair cassette recorder - status quo.
b) 2nd choice - Purchase VCR and TV for taping at City Hall
($600-800 cost).
c) 3rd choice - Tape meetings at Cable Co. and view at Police
Department when necessary. (Because the Cable Company
can only tape two hours on a tape, the additional
expense for the second tape at $6.00 x 30+ meetings per
year equals $180.00. The purchase of our own VCR and TV
would pay for itself in three or four years.)
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MEMO TO: John K. Anderson, City Administrator
FROM: Judith S. Cox, City Clerk
RE: On Sale Liquor License Requirements
DATE: November 16, 1984
Introduction
The voters in Shakopee did approve, on November 6th, the Council
issuing an additional three on -sale intoxicating liquor licenses,
over and above the nine now permitted by law. Council previously
indicated a desire to amend the City Code which establishes
the regulations of obtaining and maintaining an on -sale intoxicating
liquor license.
Background
In addition to state statutes regulating the sale of on -sale
intoxicating liquor, the City of Shakopee requires 1) a new
licensee to have a minimum investment in structure and fixtures
of $200,000; and 2) an establishment containing more than 4,000
square feet of space must receive at least 50% of its gross
receipts from the sale of food for consumption on the premises.
The following establishments currently hold an on -sale intoxicating
liquor license. All have a Sunday liquor license (except Clair's
Bar) and therefore meet the state statute definition of a restaurant.
*Pullman Club
1162
sq.
ft.
Clair's Bar
472
sq.
ft.
*Richard's Pub
3513
sq.
ft.
*Cactus Jacks
2486
sq.
ft.
*Arnies Friendly Folks
648
sq.
ft.
*Shakopee House Restaurant
4817
sq.
ft.
*Rock Spring Supper Club
1091
sq.
ft.
*Capone's Restaurant
4200
sq.
ft.
*Granny's Restaurant
1491
sq.
ft.
A survey was made of a number of communities to learn whether
or not they require a minimum investment for
athew licenslicensee
and to also learn whether or not they apportion
to certain types of businesses. Our City Code permits the licensing
of hotels, motels, restaurants, exclusive liquor stores and
clubs. See attachment.
SURVEY
On Sale Intoxicating Liquor Licenses
New Applications
11-16-84
Apportionment
Community Minimum Investment of Licenses
Brooklyn Park No No
Restaurant must be
primary business
St. Louis Park
No
No
Must be restaurant
Chanhassen
$500,000
No
No
restaurant
requirement
Golden Valley
No
No
No
restaurant
requirement
Hopkins
No
No
No
restaurant
requirement
Minnetonka
No
No
Require 50% food
sales
White Bear Lake
No
No
No
restaurant
requirement
Burnsville
$1,000,000
13 Class A
No
restaurant
requirement
5 Class B
Bloomington
No
No
Limited to hotels
and
restaurants
Plymouth
$19000,000
No
No
restaurant
requirement
Chaska
No
No
No
restaurant
requirement
No. St. Paul
No
No
No
restaurant
requirement
Inver Grove Heights
No
10 licenses for
No
restaurant
requirement
structures &
fixtures valued
under $1,000,000
2 licenses for
structures &
fixtures valued
over $1,000,000
Cottage Grove No
No restaurant requirement
No restaurant requirement
Hotel, restaurant
Woodbury No
No restaurant requirement
Shakopee $200,000
No restaurant requirement
2 licenses for
structure &
fixtures valued
between $100,000
and $200,000
2 licenses for
structure &
fixtures valued
between $200,000
and $300,000
6 licenses for
structure &
fixtures valued
over $300,000
No
Summary of Alternatives
In examining the survey, it appears there are two possibilities
to consider in apportioning on -sale liquor licenses, and I would
like to suggest a third:
1. Establish classes with specific definitions as does Burnsville.
2. Apportion licenses based upon the value of the building
and fixtures as does Inver Grove Heights and Cottage Grove.
3. Apportion licenses based on square footage, since we already
restrict licenses to restaurants only if over 4,000 sq. feet,
ie..
a) bar and/or restaurant under 4,000 sq. feet
b) restaurant over 4,000 sq. feet
c) hotels and motels
Shakopee licenses currently issued as follows:
Bar and/or restaurant under 4,000 sq. feet 7
Restaurant over 4,000 sq. feet 2
Hotels and motels 0
Some possibilities might include:
Bar/Restaurant Restaurant Hotel
under 4.000 sa ft over 4,000 sq.ft.
Motel
Alternative 1) 73 2—
►' 2 ) 8
3 ) 7 3 1
4 1
Bar under 4,000 sq. ft.
Restaurant over and Hotel or
under 4.000 sa ft Motel
Alternative 4) 10
if 5 ) 11 2
1
Rec0mmendat'nn
Alternative No. 1 under the third possibility is recommended
because it is somewhat consistent with our current restaurant
requirement if the establishment is over 4,000 sq. feet. This
alternative also reflects staff's perception that Council is
not interested in licensing additional bars, but rather attracting
a major restaurant and two hotels. In adopting alternative
No. 1, I'd like to point out that there would be no license
available for another restaurant like Granny's or Mr. Steak.
11,L -
Action Requested
Direct staff to prepare an ordinance apportioning the City's
12 on sale liquor licenses:
a. Exclusive liquor store or restaurant under 4,000 sq. ft. -
7
b. Restaurant over 4,000 sq. ft. with 50% of gross receipts
from sale of food - 3
C. Hotel or motel - 2
MEMO TO: John K. Anderson, City Administrator
FROM: Judith S. Cox, City Clerk
RE: Questions Raised Regarding On Sale Liquor Licenses
on October 16, 1984 Council Meeting
DATE: November 16, 1984
Tntroduction & Back9ro�nd
On October 16th Council raised a number of questions relating
to the structure (ie. building) in which a licensee
icen eyeholds addressea
liquor license. The attached memo from the City
these questions.
The building inspector has also advised me that the building
code does not require handicapped facilities for a change in
ownership of a license at the same location, but does require
handicapped facilities for a new structure or an old structure
undergoing renovation. Hence, handicapped facilities are not
required to be installed in any existing structure currently
holding an on sale liquor license. He also explained that an
existing structs o structure
does
threatnot
to healthoo b safetybrought
of customers.current
code if there i
While amending the City Code to apportion the on sale liquor
licenses in to different classes, Council may wish to have specific
language added addressing some or all of the questions answered
in the City Attorney's attached memo dated October 31, 1984•
Alternatives
Question 1.
Pro - would bring structure up to code.
Con - a) If owner ntsuanddbelforced tomay
continue aoperatingoord
improveme
go out of business.
b) If renter, licensee would have no control of owner
making improvements and be forced to continue operating,
go out of business, or help new owner find a new location.
Question 2.
Pro - would bring structure up to code.
Con - would require nfind laelocationlook whereostructure
the owner willing
up to codee ng
to make the necessary improvements.
Question 3.
Pro - would bring structure up to code. because of
Con - may cause some existing licensee a hardship
improvements necessary.
Question 4.
Pro - would free up a license temporarily.
would encourage a licensee to make necessary repairs quickly.
Con - this would cause a second hardship on a licensee.
In order to encourage restoration :in a timely manner,
a time limit might be established.
Question 5.
Pro - would allow new contruction for a new :Licensee.
Con - a new restaurant, hotel, or motel may chose not to build
in Shakopee, if they weren't assured of a license.
Question 6.
Factual - once a business ceases to operate, it loses its grandfather
rights, ie. if the Council chose to apportion 6 instead of 7
licenses to bars and small restaurants (under 4,000 sq. ft.)
and if Cactus Jack's decided not to repair their building, that
license would become unavailable; because we now have 7 licenses
of this nature and we would need to get down to 6. If Council
goes with the recommendation in the staff memo apportioning
7 licenses to bars and restaurants, this is 2, mute point.
Recommendation
If Council is desireous of implementing any of the five questions,
please direct staff to incorporate them in the ordinance being
drafted apportioning on sale intoxicating liquor licenses.
JSC/jms
JULIUS A. COLLER, 11
JULIUS A.COLLER ATTORNEY AT LAW 612-445-1244
1859-1940 211 WEST FIRST AVENUE .,
SHAKOPEE, MINNESOTA
55379
Memo to Judith S. Cox, City Clerk
From: Julius A. Coller, II, City Attorney
In re: Questions raised regarding on Sale Liquor Licenses on October 16, 1984
Council Meeting
Date: October 31, 1984
1. Question - Can the City require a building to be upgraded when the.owner of a license
sells an existing license to a new owner at the same location?
Answer: Yes, as long as the upgrading is for the purpose of bringing the building up
to standard or code.
2. Question - Can the City require a building to be upgraded when sell an existing
license to a new owner who is moving to a new location?
Answer: Yes. It would seem to me that this would be a case of a new business.
3. Question - Can the City hold up the renewing of a present licensee who has an
existing license and does not upgrade his business for a long period of time?
Answer: Yes., providing that the upgrading is required to bring the building up to code
and safety regulations.
4. Question - Should the City renew a license while a business is shut down for reasons
---- unrelated to the license?
Answer: This is primarily a question of city policy but it seems to me that if the
business is shut down for reasons unrelated to the license, for example a fire, and
considerable reconstruction and repair is required, the license should not be forfeited.
5. Can the City issue a license when a'
sn't yet constructed and if so how
long is such a license reserved for this business should it not be constructed?
Answer: Again this is a policy question. It would seem to me that if a license is
available and there are definite plans for constructing a premises to house the license
and the Council is so advised they can issue a license, but, the licensee should he
advised that the business must be in operation within a certain length of time or the
license will be revoked and this should be made a condition of the granted license.
6. Question - If the code would permit 9ClassA licenses and 3 Class B licenses, but
e in a particular class at the time the numbers are established,
the City has issued mor
and if a license is not renewed and the business closes, and if a new party comes along
asking for the same class license,''is it still available or does the code govern making
that license not available in that particular class?
Answer: Code would govern the prior business as grandfathered in, but once not renewed
or lost for anyother reason grandfather rights would terminate and the code would
govern.
11ry�
MEMO TO: Mayor and City Council
FROM: John K. Anderson, City Administrator
RE: Request for Funding From Minnesota Valley Restoration,
Inc.
DATE: November 15, 1984
The Shakopee City Council, at its regular November 6, 1984 meeting,
received a letter along with a presentation from representatives
from Murphy's Landing. They explained that Murphy's Landing
is in need of both short term and long term financial assistance.
City Council, after hearing the presentation, directed staff
to research Ordinance No. 351 and to research the possible revenue
sources that Council might use if it chose to provide financial
assistance to Murphy's Landing.
Ordinance No X51 & 290
I have attached a copy Ordinance No. 351 and Section II of Ordinance
No. 290, which is referenced in Ordinance No. 351. The only
substantive difference between the two ordinances is Section
II on Page 2 of Ordinance No. 290, which is referenced in Ordinance
No. 351. Councilmembers can contact me if they wish to read
all of Ordinance No. 290.
The City Attorney has been provided a copy of Ordinance No. 351.
It is his legal opinion that the City cannot make either one
time or on-going expenditures to assist Murphy's Landing unless
Council amends Section I, paragraph D of Ordinance No. 351.
Therefore, if Council chooses to provide financial assistance
to Murphy's Landing prior to December 31 of this year it should
direct legal staff to draft the necessary amendment for Council
action early in December.
One Time Funding Alternatives
The Finance Director and I have reviewed the 1984 budget in
search of revenues for a one time expenditure for Murphy's Landing
prior to the end of the year. We have found the following alter-
natives:
1. The present General Fund contingencies stand at approximately
$90,000 as of the end of October. Other revenues and expendi-
tures through October are reasonably on target; therefore,
the bulk of the $90,000 is available for any contingencies
Council chooses.
2. Use of funds in Shakopee's various tax increment districts.
The Assistant City Attorney has provided us with the opinion
that tax increment revenues cannot be used for operation
and maintenance. Since the one time expenditure requested
would be for the payment of existing bills which may or
may not be of an operation or maintenance character, we
do not advise Council to pursue this alternative.
3. The City could look to the Park Reserve Fund which has a
budgeted fund balance for December 12, 1931 of $123,225.
The Park Reserve Funds may be expended for acquisition and
for development but not for operation and maintenance.
To use these funds would require an amendment to Council's
resolution establishing the uses for funds in the Park Reserve
Fund.
4. General Debt Service Surpluses. The Finance Director and
I have reviewed debt service funds which will be closed
either in 1984 or 1985. We identified two funds:
a) The G.O. Judgement Bond Fund will be closed out with
a $7,000 balance. This $7,000 is budgeted to be placed
in the Capital Improvement Fund for 1985 and an amendment
would have to be made to the 185 Budget resolution to
use it otherwise; and
b) The 1974 Special Assessment Fund will be closed out
January 1, 1986; however, because of delinquencies the
Fund looks like it will have a zero balance. Thus,
there is no money available in this Fund.
On -Going Funding
The Finance Director and I reviewed the City's various revenue
sources both from the General Fund and the Special Funds. We
have found the following alternatives:
1. Attached is a copy of the City's LGAA form 280 which was
used to established the City's 1985 tax levy. If you will
look at the left column you will see that schedule C and
schedule E have been circled. These were the only two special
levies the City Finance Director and I could find that might
be used for Murphy's Landing funding.
a) After checking the matching funds program we found that
it could only be used for State or Federal grant programs
so we could not use it, as I thought we might, to match
Scott County funds.
b) To use schedule E, Bonded Indebtedness, the City could
take one of two approaches. We could have a bond election
to sell $50,000 in bonds and then retire those bonds
over ten years, thus relieving Murphy's Landing of its
$50,000 loan from First National Bank. The second alter-
native would be to asked the voters for a specified
additional permanent levy at 1/5 mill (any fraction
could be choosen) to provide an on --going specifically
designated source of funds.
One mill currently generates $75,000 to $80,000. Either
of these approaches would require an election and approval
by the voters. Should Council take a specified fractional
mill levy approach, it will generate an increasing amount
of dollars as the City's tax base grows.
2. If Murphy's Landing could identify some permanent grant
program from the State of Minnesota which would be available
each year then the City might apply for that grant and contribute
matching funds using Schedule C from the LGAA 280 form,
thus allowing tax dollars to be contributed directly to
Murphy's Landing to match the grant.
3. The City could establish a regular annual expenditure from
the General Fund. The expenditure could come from the Park
Division Budget or from Contingencies, and be handled as
an annual transfer payment. This procedure would be straight
forward and require no amendments to existing ordinances
or resolutions.
4. The City could make an annual allocation from the Park Reserve
Fund. Such an annual payment for operation and maintenance
would require that the City Council amend its policy which
states that Park Reserve Funds should be spent for acquisition
and development of parks. An alternative approach would
be to make expenditures from the Park Reserve Fund for capital
improvements at Murphy's Landing. This may be helpful to
Murphy's Landing; however, one might question whether or
not such expenditures would only expand the Landing's need
for more operation and maintenance monies.
5. The City could make an annual contribution from Revenue
Sharing. This fund would not be recommended by the Finance
Director and me because it would require that Murphy's Landing
be subject to an annual revenue sharing audit. Revenue
sharing monies must be spent in compliance with Federal
regulations which could be more administratively onerous
than the value of the City Revenue Sharing contribution
itself.
6. The annual contribution could come from the Capital Equipment
Fund. This, like the Park Reserve Fund, would require that
the Council amend a standing policy which establishes the
purpose of the fund.
7. Metropolitan Council funds for operating and maintaining
regional parks. Attached is page 2 from the Metropolitan
Council's 1985 Position Paper for Legislation on Regional
Parks. The proposal calls for establishing a regional park
operating and maintenance (0 & M) fund and establishes a
formula for distributing the funds. While this would not
be money from the City directly, the City could assist Murphy's
Landing in pursuing this kind of funding and having Murphy's
Landing designated as a regional park, since the Landing
proportedly serves a regional cliental.
8. The City could adopt the present local option admissions
tax. This tax requires that revenues obtained be spent
95% for advertising and promotion of tourism. This would
allow the City to use the 95% to significally reduce Murphy's
Landing's annual advertising budget. The City might also
use the money to generally advertise all of the tourist
and recreational activities in and around Shakopee.
9. The City could contribute in kind services. The Finance
Director and I have identified two such in kind services
that might be available:
a) The City could provide the financial recordkeeping for
Murphy's Landing. This would be
provided much in the
way that the City know provides
fiduciary services for
Shakopee Community Services. I
have discussed this
with Gregg and he believes that
the program would be
feasible if it could be handled in
the same manner as
he handles Community Services.
b) The City could provide grounds
maintenance services
through the Park Department for the
Landing. This service
would undoubtedly require that
the City employ more
seasonal help but could provide a
,savings if the City
can tackle the job with the City's
larger more efficient
equipment.
Summary and Recommendation
Virgil Mears has provided us with the 1983-84 balance sheet
and combined operating statement for Murph-y's Landing. These
actual expense reports can be compared to the proposed 1985-86
budget which is also attached. Council may well wish to discuss
the proposed 1985 budget along with elements of Ordinance No. 351
which have not be regularly adhered to. As presented, the Landing
needs $25,000 before December 31, 1984 and $94,195 in additional
revenues for its 1985 budget from the City, County or other
agency and this will not cover the $50,000 loan.
If the Council can be as successful as the 1973 Council was
in clearly defining and holding down the City's financial commitment
(we only contributed land over an 11 year period under Ordinance
No. 351), than perhaps some financial commitment can be made
for the next 10 years. If the City does put a funding mechanism
in place for the next ten years, then I believe the City needs
more assurance that the Landing will operate on a consistent
basis without periodic financial crisis.
Action Reouested
1. Pass a motion that Council provide $15,000 in 1984 to assist
Murphy's Landing in reducing their $25,000 in payables through
a contribution from the General Fund Contingencies.
2. Direct staff to prepare an agreement cutlining a ten year
City funding commitment of $10,000? per year from Park Reserve
Funds to Murphy's landing on the condition that the City
have a "veto" on each annual budget before it is finalized
by the Landing Board and that the Scott County Board increase
their $33,000 annual contribution to $45,000 per year for
the same 10 year period to reflect the Landing's County -wide
cliental.
1 1 1YY_
C)=lltl tvu 1VV.
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Oi�D-r,, iaP:CE =�C�r1 T'�� '_ vii T CCI'; i Y�;I�C � OF C�.�'.ii_il� , :it�� iG T^. :�CCPTT'
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VQTs�\ril :+i✓TO1�_IC�:Z JVVIEI_ � 11�SV •, ia1�SJ t11121I1G Ll+...rl. 1i
TO LNli y LCII�G CEI TAIiY E.EST�:ICTIONS. TITF.EOid.
viM The Scott County Historical Society, Inc.? hereinafter
referred to as "The Society", is a duly incorporated, non-profit or-
gani^ation under and pursuant to the lavas of the State of I-.innesota,
and
W1 =7FL.AS, Said Society has :Wade a serious study for the development
of a historical site and park to be located on certain property herein-
after described and have discussed plans evolved as the result of such
study and work heretofore done in an adjacent area with the City Plan-
ning Commission of the City of Shakopee and the Common Council of the
City of Shakopee, and the Society has secured funds for further study
and development and is in the process of securing other and additional
funds for further study and development and is in the process of securing
other and additional funds for said purpose, and
V iJE,�;,S , The S oc ie ty has alleged and demonstrated that a prime
condition prerequisite to the securing of additional private and other
funds for the further development of said site and park is the
acquisition of legal title to certain lands herein described, and
VIHERD).S, The Planning Commission of the City of Shakopee has on
January 11, 1973 by G majority vote of all of its members duly de to=aine d
that the City property described in Exhibit- A hereto attached and made a
part hereof would serve a superior public use and purpose ifdeveloped and
used as contemplated by the Society and in view thereof it is not de-
si rable for further public use in its present state, and the P1Fnr„,g
Commission has recommended the conveyance of said land to the Scott
County ListoriCal Society, Inc. for such purpose.
T F FO= , T C0 '.:IOT`+ COTJi;C7i: OF THE CITY OF SHkt.0P= DOES
ORD! IT :
SECTIONI: ADoptior an6 knr proval of the Findin- s of the Pla`nnin”;
Comm4-ssion.
The Common Council hereby adopts and app= -ones the findings of the
Flanning Co=ission that the property would serve the highest foreseeable
11uLlic use anC, U', '"p0='� ii ccnveycd under certain conditions to the Scott
- 2 -
County Historical Society, Inc. for the development of an historical
site and cor.:plex and, in t-iew of said intended use, the area would no
longer be needed or desirable for continued use as presently used.
S-CTIOTT !I: pi re ctlnr Conveyance.
The Common Council of the City of Shakopee hereby authorizes and
approves the conveyance and transfer of title to the Scott County
Historical Society, Inc. for the aforesaid purposes, said area to be
conveyed as more fully described in Dyhibit Afs hereto attached and made
a mart thereof.
S>JOTION III: Limitations and Reservations on Conveyance.
The transfer and conveyance above authorized and directed shall
be made on the following conditions, limitations, restrictions and
reservations, to-v.rit:
A. The pa k will continue as a resident park -picnic area with
a parking lot, but not open to automobile traffic. Vlhen increased use
of the historical site changes the nature of the parht a replacement
park. area may be developed for resident use in accordance with the
"Lawrence 1-1ap" which gill insure the people of Shakopee the same facilities
they are now er_joying. The changes in operation would include fencing
the area and maintaining hours with admittance to residents of Shakopee
and guests, all subject to Council approval.
L. 1.11 development plans cf the Historical Society, Inc. which
may alter or adversely affect the integrity of the environment shell
be approved by the Coon Council.
C. The Minnesota. Valley restoration 2roject Interpretive Center
tivill be bui It on the western end of the park as located on the said
"'Lawrence ;lap" and be ope_ ationa by d r z- 1, 1:978- The Center is to
be 1 , 700, 000 structure vnd the following uses shall be assured the
resident z of the '"Ji ti of Sna!Lopee :
1. Aoffice area for the recreation Department control
An
Their activities that could best be originated from the Center.
2 . Fail use of a new picnic area, if developed, for resi-
dents and guests with picnic tables, benches, and facilities at no
I ( INL--'
3. First scheduled use of nature labs outside of school and
night school up to site capacity.
4. Use of all site progr=s during the su:lmer up to capacity
subject to a fee.
5. Use of the library at all times by card.
G. Use of the meeting rooms and craft facilities outside
of school and night school schedule.
7. Use of the theater one—fourth calendar evening time.
B. Scheduled use of large areas such as the cafe t orium for
recreation department and civic groups in the evening. These facilities
are to be used without cost except for program personnel. Fr:oject per—
sonnel can be used by the recreation department when activities fall in
the assigned framework, of such personnel.
D. The site shall continue to be developed for, maintained, and
used as an Historical Society park and museum at the sole expense of
the Scott County Historical Society, Inc. for the benefit, use, and
education of the general public and upon such reasonable and non—ex—
clusive restrictions and limitations as may be adopted by the Society
with Council approval.
F. That the site and the said improvements and betterments
placed thereon shall not be sold, encumbered, mortgaged, or hyp othe cate d
.and that the Society will keep said property free from any and 411 liens
and other attachaents at all times.
F. That the Society shall hold tale City free and harmless from
f the use and development of such site
any and all claims prising; out o
as aforementioned and will defend the City from any and all claims of
ption and shall continue to file ��rith
Whatever hind, nature or descri
the City of Shakopee a public liability policzT, SRrith the Scott County
t+ City of Shakopee named as assureds
�T.3.Storl.Ci"� JOvZe t;y y 1._'1L'• C:_'1.v. L..1e C-�+�
thereunder.
GO That the Society shall r_ia.inta- _n at all times a. minimum active
paid—up membership roster of 100 Scott County residents.
H. That the Society shall file ar. annual budget and a complete
annual financial statement with theCity of Shakopee indi catin�;-�' 1 monies
- 4 -
directed to and received for the Shakopee project to be developed on
tracts owned and controlled by the Society and varifying that at least
a substantial e-nount of all said monies be committed for the physical
development an4xtifacts to be placed on and for the maintenance of said
project on said land above described and also land already ovrned by the
Society.
I. That the Society shall hold at least two general meetings
per year and an annual election of officers and promptly file the names
of said officers so elected with the City of Shakopee.
J. That the City of Shakopee reserves the right to negotiate with
the State of Minnesota for the location and construction of a bridge,
highway and interchange over and across any of said area herein described
as now being studied by the City and the State of Minnesota, its agents,
departments and commissions, without incurring any liability, damages, or
indemnity whatsoever to the Soctty.
K. That the City of Shakopee reserves a permanent drainage
easement El ong the iL.11 Pond Creek to the I innesota River.
L. That, should the Society fail to attract the anticipated finan-
cial support and to develop, use and properly maintain said site as pro-
posed and set out, or fail to comply with any of the te=s of this or-
dinance or of Ordinance 76290, title to said site together with all im-
provements and betterments thereon shall revert to and become vested in
the City of Shakopee free and clear of any claims of any person, firm or
corporation or association and any dispute or question as to the Society's
performance hereunder shall. be in the first instance determined by the
Common Council of the City of Shakopee at a public hearing to be held after
30 days' written notice to said society specifying the grounds for said
hearing, with the right of the Society to appeal to the District Court
of the proper jurisdiction within 30 days after said hearing and deter-
mination by the Council.
I. That the Society by accepting this conveyance waives any and
all claims that it now has or may hereafter have for its own benefit or
the general public or for its invitees and licensees or any other person,
firm, or corporation whatever against the City of Shakopee for any reason
or cause t,1at arises, arose or might arise or result from the operation
- 5 -
of the present sewagei.iti�.:s .iNc:rr tGu by the City of
:�tii�t:GpE t vi' i.:ty l° ilt l u�•_+.i�l: {,ancy in the of
j - rA s e a
� C` f,rope rt,r 9 or an,,, _. ,�tt: r� aae
v1����•}-ts of 4-11n ���rn r�n✓n+� �n i. l n �.�
N. ^l: at the re se rare.+ -i or_ set out of Section II of Ordinance
No. 290 shall remain in full force and effect so long as applicable or
until, teraine XcI b"- the City of Sha.kcpee.
ST-'r%mjOjI7TT`� rr� ni'� ty
Each and every section, provision and parr of this Ordinance is
Sf. p ar'wb� eCW E Ve r,r other sect :. on , provision or pa -1-t. an(1 , sho111C any
:,Ceti on -provision or part be v�o'i � to be "t;:'i onsti-u-cional by a CQtL'"r
of Co^pe 4-C'_1t L'= 5� :'�� C'2s =T shall not affect any other sectio-ri, r_ro-
vivion or part hereof.
a-;-TJtion a':1 t)Ll'�:.'j C� �':^L� aS cro ri,.Ie6 b -y the Amen.de6 Cih&rter of the v1 Wy
of;�`1a'_�c�',)E� ';"oV1C1C^ that 'he Socie-,?T shall file a 6 --LO y vlriTten and.
�rcr�f ie accet��a-`lee of e? the Terms hereof »pon ��t?theri7.e.tic�n previously
' o i
ie CltvT said. LOCL. _ csseri_ble a.
Ot1tc r7 i n arl niLri2ed re malar sessiofl of the Common Council of the
iy Lir f 1 P r ' r nT -i T. i ' ", f MELT ;
o_ Shakope _ , =:Ii_ nes _ Ja, he �k ,b _s 27th c� a o_ _ a.� c±2, i y" 3 •
A.,;:
T l.� �.J 1
w;1 oV Q".i2 L`J - �-."� G%j' r +~ larch,
i
Approve :l y' --,y
of ?.is rch,. 19-73.
city I� to er
ait
Force
m ; become effective.
<O days
fra-.q an- 6. Fa.fTCr its
a-;-TJtion a':1 t)Ll'�:.'j C� �':^L� aS cro ri,.Ie6 b -y the Amen.de6 Cih&rter of the v1 Wy
of;�`1a'_�c�',)E� ';"oV1C1C^ that 'he Socie-,?T shall file a 6 --LO y vlriTten and.
�rcr�f ie accet��a-`lee of e? the Terms hereof »pon ��t?theri7.e.tic�n previously
' o i
ie CltvT said. LOCL. _ csseri_ble a.
Ot1tc r7 i n arl niLri2ed re malar sessiofl of the Common Council of the
iy Lir f 1 P r ' r nT -i T. i ' ", f MELT ;
o_ Shakope _ , =:Ii_ nes _ Ja, he �k ,b _s 27th c� a o_ _ a.� c±2, i y" 3 •
A.,;:
T l.� �.J 1
w;1 oV Q".i2 L`J - �-."� G%j' r +~ larch,
i
Approve :l y' --,y
of ?.is rch,. 19-73.
city I� to er
rm
Ste. _IO" II: Di recti n-7 Conveyance
The Cor-z�ion Council of the City of Shakopee hereby authorizes and approves
the conveyance ana transfer of title to the Scott County Historical Society, inc.
for the nominal consideration of One and no/100------------------------Dollar
the following described tract of land, to -wit:
The following part of the City property, which City property is
described as follows, to -wit: Government Lots 1 and 2, Section
32, Township 116 Ido;. th, Range 22 i -Test; that part of Government
Lots 1 and 2, the Northwest quarter of the Northeast Quarter,
and the Northwest uarter of the I•;orthwest Quarter of Section 5,
Tofmship 115 iiorth, Prange 22 West lying North of the North line
of State Trunl Highway '101, being Route A187, which said property
to be conveyed by this deed is more particularly described as
follows; lying East of the following line:
Beginning at a point on the centerline of the West bound lane of
Trunk Highway ;,'101, distant 1671.07 feet (as measured along the
centerline of said lane) East of the Ilest line of Section 5,
Township 115, Range 22; thence North at right angles a distance
of 202 feet; thence deflecting to the West at an angle of 87048,
a distance of 67.75 feet; thence deflecting to the North at an
angle of 23010' a distance of 251.4 feet; thence deflecting to
the North at an angle of 23038' a distance of 403.1 feet; thence
North a distance of 130 feet more or less to a point 30 feet
Forth of the I, orth bank of the I -Lill Creek; thance Easterly and
parallel to said North bank to the Iiinnesota River and there
terpin$ting.
Excepting therefrom the following described tracts:
1. The Northeast Quarter of the Northeast Quarter of the Northeast
4Quarter, Section 5, Township 115 F=orth, Lange 22 West, lying North
of the Ivorth line of State Trunk Highway ;,'101, and
Reserving, however, unto the City of Shakopee all right, title and interest
in all structures and improvements in and on and the right to possess for a period
not to exceed ten years from and after Januar;r 19 1969 the following tract, to -tit:
The South Half of the Southeast Quarter of Northwest ?uarter of
Ilortheast c)uarter of 11.1
Northwest Quarter of Section 5, Township
115 ;forth , Range 22 West lying 'north of the ;forth line of State
Trunk Highway W`101, and.
Reserving further, as a roadway, a strip of land 50 -feet in width, the center-
line of which coincides with the centerline of the existing traveled roadway as
presently located and traveled; said strip of land being located in the Northwest
-uarter of Section 5, Township 115 North, Range 22 vlest and running in a general
northerly ... southerly direction between State Trunk Highway =101 and 30 feet Forth
of the ,fill Creel:, but granting to said grantee, its licensses and invitees, the
full ri-ht to use said road for passage in common with others, all the above land
lying and being in the County of Scott and State of i•iinnesota.
COMPLETE AND KEIUKN IU:
Local Government Aids/Analysis Division
Department of Revenue
19S4/1cj85 SPECIAL LEVIES P. 0. Box 64446
St. Paul, Minnesota 55164
;ERTIFICATION Phone: (612) 296-2286
Name of-Governmentalnit Name o Person Filling -Out orm
sGregg Voxland
Tailing Address a ep one
129 East First Avenue, Shakopee, MN 55379 (612) 445-3650
1. Total
Schedule
Levy Certified
to County Auditor.
(Do NOT Include
Schedule
1,407,043
Local
Government Aid
or Taconite Aids in
this+mount.)
$
A
2. Total
Special Levies
(from bottom of page
1)
$
331,397
3. Levy
Subject to Levy
Limitation (1 minus
2)
$
1,075,646
n �nnn iinor I ovv I imitatinn (GPP nano 1 of
the instructions.)
S
/. n7S'_ 4 51(e-
'G
I, the budget representative of the above mentioned county or city, certify that the
foregoing figures are accurate to the best of my knowledge.
SIGNATURE OF BUDGET OFFICER �/ ' TITLE: �c �� DATE: ro%/e/
Schedule
Special Levies
Total
Schedule
A
Tort Judgments and Liability Insurance
S 17,366
A
6
Lawful Orders Initially Issued Before January 1, 1977
--
B
C
Matching Funds Proqrams
28,890
C
D
Social Services and Public Assistance
--
D
E
Bonded Indebtedness
233,528
E
F
Certificates of Indebtedness
--
F
G
Principal and Interest on Armory Bonds
G
H
Payments for Bonds of Another Governmental Unit
H
I
Decreased Mobile Home Tax
I
J
Auditor's Error of Omission
J
K
Clerk's Error of Omission
--
K
L
Municipal Board Orders
--
L —
M
Increased Industrial and Commercial Development
24,122
M
N
Tax Abatements
3,491
N
0
Unfunded Accrued Liability of Public Pensions Funds
0.
P
JEmployer Commuter Van Program
P'
Q
Southern Minnesota River Basin Area II
Q
R
Commissioner of Revenue Ordered Reassessments
--
R
S
County Jail Operating Costs
--
S
T
Shade Tree Disease Control
24,000
T
U
IMinnesota Cooperative Soil Survey
--
U
Subd. 7
Count Subordinate Service Districts
--
Subd. 7
Referendum
Additional Levies Approved by Referendum
Referendur
Laws
1982 1983 and 1984 Minnesota Laws
Laws
Total Special Levies
$ 331,397
I, the budget representative of the above mentioned county or city, certify that the
foregoing figures are accurate to the best of my knowledge.
SIGNATURE OF BUDGET OFFICER �/ ' TITLE: �c �� DATE: ro%/e/
This project is a key portion of Central Mississippi
Riverfront Regional Park and overall redevelopment of
the Minneapolis riverfront. An additional $1.5 million
is needed for park development on Boom and Nicollet
Islands.
— Lake George Regional Park, in Anoka County, needs
$350,000 for roadwork, parking, lake access and
sanitary facilities to relieve an acute crowding problem.
— Como Conservatory, in St. Paul, needs $2.8 million to
continue the renovation of this heavily used historical
facility.
— Bryant Lake Regional Park, in Hennepin County, needs
$710,000 for improvements to a beach, access road,
parking and sanitation facilities in a location serving
south Minneapolis and heavily populated suburban areas.
Financing
Debt services required to be paid on the expected $22
million bond request is as follows:
— Fiscal year 1987: $3.6 million
— Fiscal year 1988: $2.7 million
— Fiscal year 1989: $2.6 million
These figures assume an interest of 8.1 percent, to be paid
over 20 years. The bond sale would be in August 1986.
Funds for Operating and Maintaining
Regional Parks
Proposed Legislation
The Metropolitan Council seeks legislation to authorize and
fund a grant program to help regional park implementing
agencies pay up to half their annual costs to operate and
maintain regional parks. To provide this supplemental
funding, the following amounts will be needed:
— Fiscal year 1986: $9.2 million
— Fiscal year 1987: $9.8 million
— Fiscal year 1988: $10.4 million
— Fiscal year 1989: $11.2 million
[The preferred source of funding is a stable, state-wide
source, such as a dedicated tax on soft drink and candy
sales.
Initial distribution of funds to implementing agencies
would be determined by the following formula:
— Local effort to support regional operation and
maintenance (30 percent)
— Total number of users in an agency's regional parks
(30 percent)
..- The share of the region's park acreage for which the
agency is responsible (weighted for land -use intensity)
(25 percent)
— Council discretion for starting new projects or remedy-
,,_ ing inequities created by the formula (15 percent)
This formula is the result of compromise among implement-
ing agencies about which factors to include and the relative
importance of each. The Council recommends, however,
(( W
that no formula be written into the legislation so as to
permit adjustment by the Council as experience may
recommend. The program should be administered by the
Council on a block -grant basis, subject to a post -grant audit
by the Council.
Why Action Is Needed Now
Since 1974, acquisition and development of the regional
park system has been funded by grants of regional and state
funds from the Council to the 10 regional park implement-
ing agencies. These agencies have had the sole responsibility
of funding operation and maintenance costs of these parks.
Also since 1974, two major changes have occurred:
1) pressure on local governmental finances, particularly on
the property tax, has increased tremendously; and 2) the
regional park system has progressed from primarily an
"acquisition mode" to an increased "development and
operation mode," with the attendant increased costs. In
1983, the system -wide operation and maintenance cost was
about $15.7 million. Of that amount, 86 percent came
from property taxes. System -wide costs are projected to
jump to $22.4 million in 1988 (see Figure 2).
Figure 2
COSTS OF OPERATING AND MAINTAINING
REGIONAL PARKS, 1980.1988
Millions of Dollars
$25-
20-
15
252015
10-
5--
19
0
5
1980 1982 1984' 1986 1988
'Years 19841988 show protected costs in 1983 dollars.
Some of the agencies with developing parks can no longer
cover all the increased costs at the local level. In a few
cases, acquisition and development of the system has been
held up by an agency until some regional funding is provided
for operating costs. Other agencies, whose portion of the
system is already developed, believe they have been
carrying the full cost too long already. They seek needed
relief. The present structure has led to significant differ-
ences between levels of benefits and levels of payment for
regional park operations throughout the metropolitan
area. Developments planned for the system will help reduce
those differences, but the uneven distribution of natural
resources, facilities and population means that differences
will always exist. The Council seeks to make those
differences as small as possible. Supplemental operations and
maintenance funding is needed to reduce undesirable
differences throughout the system.
EXPENSES
MINNESOTA VALLEY RESTORATION PROJECT-"` 11/15/84
J. Obst
PROPOSED BUDGET FOR 1985-1986
March 1, 1985 to Feb. 28, 1986
General Operating
Payroll (gross: inc. state, fed. $ 169,000
taxes, FICA)
Telephone
Insurance: work.comp.;gen.liab.;
multi -peril.
Postage
Office supplies
Office equip. & repair
Accounting & legal (audit,etc.)
Staff expenses: using private veh.
for business
TT+; 1 ; +; --
Electricity
Oil
Gas
Taxes
FICA (employer's share, .07/ gross)
Minn. Dept. Rev.; 6% gifts sold
Programs and Promotion
Advertising
Printing
Contracted entertainment
Stock Purchase
Gift shop and Gen store
Building Repair and Maintenance
Materials for staff labor
Contracted repairs and Mainten.
Capital Improvements
Sprinkler system and exhaust hood,
restaurant
Loans
HRA
Bank loan ?
4,200
6,860
4,000
3,000
3,000
4,000
2,000
6,000
2,000
7,000
11,130
1,950
4,000
12,000
3,500
25,000
25,000
20,000
10,000
6,000
$ 329,64o
INCOME
Memberships $ 15,625
650 @ $20.00
175 @ 15.00
Gate and Tours
Gate: (1984 fig. w. Dec.183 70,572
total used)
Same rates as 1984
Tours: (1984 fig. used w.Dec. 30,256
1984 tour reserva.
used)
Sales
Gift shop (this yrs. fig. thru 25,000
10/31 w. projection
that Dec. will be as
last year)
General Store (same as above for 7,500
projectinns)
Rentals
Apartments, houses, foundry 40,032
Peavey spur 3,000
Donations
Maurice Stans ($10,000 already 40,000
given)
Scott Co.
Other
Misc.
Huth electric payment 960.."
Washer and dryer in apts. 600,
Rental of church for weddings 500
Restaurant: 10% of gross sales 1,400
235-,74-5
TOTAL
f ) N0�_
BUDGET, March 1, 1985 thru Feb., 1986
EXPLANATION
.Payroll: Payroll for March 1, 1984 thru Feb. 28, 1985 will
be $194,799 (close approx. inc. Dec., 1984); new
budget for 1985-1986 is down $25,799• This is due
to the fact that we will be getting many of this
season's lead interpreters back next year which will
minimize trailing expenses. Another important ad-
vantage is that major research was accomplished this
past season related to interpretation; we can now build
upon this substantial base.
The positions reflected in new budget are:
Director $25,000
Secretary 12,000
Program Coord. 16,000
*Curator Coll. 16,000
## Bookkeeper
Maintenance
staff (3)
Interpreters
7,500
41,832
50,668
$ 169,000
NOTE: THE BANK LOAN PAYMENT (if there would be one) IS NOT
INCLUDED IN THE $329,640 TOTAL EXPENSE FIGURE, SO IF
THESE FIGURES ARE USED FOR THE CITY COUNCIL, THAT
HAS TO BE CONSIDERED
Membership Figures reflect�incr-ease in family and in-
dividual fees; at present they are $15 and
$1Q
Gate and Tours: This year's figures used with no percentile
increase which we might anticipate with our
record this season.
# Curator of Collec tions: I am going to attempt to get
a graduate student just for the summer; if that is pos-
sible to get a qualified person, it will cut that salary some.
#Bookkeeper's salary is based on work from May 10 thru
September.
budget explanation (2)
Building Repair and Maintenance: this is a distinctly
conservative figure considering that we need at least
three new roofs this year, major repair to general store
front, a need to house our collections under one roof in
adequate storage facilities.
What this budget reflects is maintaining the quality of
programs and interpretation we have established this
year, doing some basic and badly needed repairs. What it
does not reflect is the wish to move ahead in other direc-
tions such as restoring the Druke house ... an important
architectural facet of the site, rehabbing the top floor
of the white barn for greater utilization of that building, etc.
However, all is not dismal in this area. With the upgrading
of our program we will stand a greater chance of getting
grant and foundation monies; our visitor figures, membership
increases, and increased gift shop sales, installation of
the restaurant.... all add up to a better image of the site
in trying to promote fund raising.
i_y l... __.l.y�'i v r..i.:�,1 _. L'.;:,.,,i ril__.- '..: i .'` •, lv�..
` COMBIINLD OPERATING STATEMNT -ry
FISCAL, YEAR, ENDING FEBRUARY 29, 1984
LESS OPERATING EXPENSE
PROGRAM SERVICES
Wages & Salaries 55,549.54
Other Prof. Services 5,755,38
Materials & Supplies 11 094.62
9
MANAGEMENT & GENERAL 72 3
54
Wages & Salaries 37,268.84 -
Professional Service 12,173.80
Interest 2,744.39
Insurance 6,902.27
Postage 3,032.63
Utilities & Phone 18,880.4.7
Supplies 4,581.02
Travel & Transportation 1,330.47
Printing & Advertising 95.92
94,-7 1
Total Expenses 1,6710 ,� 167,109.35
Excess - Fiscal Year 13,553. 9,354.58 22,908.26
BEGINNING FUND BALANCE (60,746.37) 24,273.71 2,050.281.18 2,013,808.52
Total (4.7,192.69) 33,628.29
TRANSFER FROM GIFT SHOP 6,188.22 (6,188.22)
FUND BALANCES -
February 29, 1984 $(41,004.47) $27,440.07 X2,050,281.18 $2,036,716.78
OPERATING
GIFT
PLANT TOTAL
CONTRIBUTIONS
General Public
7,258.01
M. & Y. Stans
60,000.00,-
0,000.00,-Scott
ScottCounty
000.00
Total
100,258.01
100,258.01
PROGRAM SERVICE REVENUE
Membership Dues.
5,409.85
Gate Admissions
22,807.01
Special Events
9,956.50
Tours
17,163,50
Sales
2,029.30
Total
57,3bb.16
57,366.16
RENTAL OPERATION
Gross Rental Revenue
37,905.98
Less Rental Expense
Total
2.6 2.23.27
21,682-71
21,682.71
GIFT SHOP OPERATION
Gross Sales
19,453.77
Merchandise Cost
9,921.42
Freight
140.37
Supplies
.40
Cost of Merchandise
100 ,19
Net
'
9,354.58
OTHER REVENUES
Interest Income
1,291.57
Misc. Income
64,58
Total
1,3 .17
56.15
Total Revenues
180,663.03
9,354.58
190,0171
LESS OPERATING EXPENSE
PROGRAM SERVICES
Wages & Salaries 55,549.54
Other Prof. Services 5,755,38
Materials & Supplies 11 094.62
9
MANAGEMENT & GENERAL 72 3
54
Wages & Salaries 37,268.84 -
Professional Service 12,173.80
Interest 2,744.39
Insurance 6,902.27
Postage 3,032.63
Utilities & Phone 18,880.4.7
Supplies 4,581.02
Travel & Transportation 1,330.47
Printing & Advertising 95.92
94,-7 1
Total Expenses 1,6710 ,� 167,109.35
Excess - Fiscal Year 13,553. 9,354.58 22,908.26
BEGINNING FUND BALANCE (60,746.37) 24,273.71 2,050.281.18 2,013,808.52
Total (4.7,192.69) 33,628.29
TRANSFER FROM GIFT SHOP 6,188.22 (6,188.22)
FUND BALANCES -
February 29, 1984 $(41,004.47) $27,440.07 X2,050,281.18 $2,036,716.78
MINNESOTA VALLEY RESTORATION PROJECT INC.
COMBINED BALANCE SHEET
FEBRUARY 29, 1984
ASSETS
CURRENT
Cash in Bank
Savings
Money Management
Accounts Receivable
Inventory
Total
FIXED ASSETS
Fixtures
Land, Bldg & Eqpt
Total
Total Assets
OPERATING
FUND
$ 1,097.14
15,193.64
49,757.76
82.50
$66,131.04
GIFT
SHOP
$ 678.95 $
22,693.03
23,371.98
4,068.09
4,068.09
$66,131.04 $27,440.07
LIABILITIES & FUNDS
Accounts Payable $10,915.54
Security Deposits 1,455.00
Payroll Taxes Payable 13,206.62
Committed Funds 8,260.20
Dues Designated Scott 125.00
Salary Payable 24,000.00
Bank Loan 35,673-15
Loan Payable Scott Cnty 3,500.00
Total 107,135.51
FUND BALANCES (41,004.47) 27,440.07
Total $66,131.04 $27,440.07
PLANT TOTAL
FUND
3,098.00
2,047,183.18
2,050,281.18
$2,050,281.18
2,050,281.18
$2,050,281.18
0
1,776.09
15,193.64
49,757.76
82.50
22,693.03
89,503.02
7,166.o9
2,047,183.18
2,054,349.27
$2,143,852.29
$10,915.54
11455-00
13,2o6.62
8,26o.20
125.00
24,000.00
35,673.15
13,500.00
107,135.51
2,036,716.78
$2,143,852.29
MURI-71Y I S LANDING
i ( Yip
Accounts Payable Nov. 6, 1984 -
Aim Marketing
$ 160.0,0
A. T. & T.
83.61
Argus Leader
122.96
Art Design
2,350.62
Berquist Import
433.14
C.H. Carpenter Lumber
10.40
Cleve's Red Owl
44.93
The Connection
225.00
Dressen Oil
102.90
Dunning Hdwe.
116.80
Evergreen Press
7.50
Hagen Equip.
54.00
Harmon Hdwe.
17.50
Herr's Inc.
29.90
Jiffy Jr.
368.23
J. and W. Enterprise
125.00
Jacman Gift
186.18
Jerome Jaspers Co
2,000.00
Lano Equipment
1,483.72
Lathrop Paint
11.90
Link Prntg.
504.05
Long Lake Tractor
18.08
M Graphics
"520.00
Metro Sales
1,291.84
Midwest Importers
347.72
M.V. Gas
600.00
Milwaukee Ins.
2,643.46
N.W. Bell
538.31
Obst. J.
155.27
Nat'l Screenprint
230.00
Penn Dutch
395.31
Portolet
125.00
Prairie Lawn
2,154.35
Ring Fire Ext.
263.00
St. Paul Dispatch
557.20
Schilz Ornam. Iron
112.00
Shackman Co.
250.06
Shakopee O.K. Hdwe.
12.92
Shakopee Public Utilities
444.20
Shakopee Veterinary
76.00
S.W. Suburban Pub.
22.50
Star Tribune
1,153.60
Stein Plumbing
1,182;50
Stemmer Farm and Gard.
118.80
Sue! Stat.
3.50
SuperAmerica
52.60
Tuppet Creates
123.12
Minnesota State Tax
485.00
TOTAL
$ 22,314.88
MEMO TO: Mayor and City Council
FROM: John K. Anderson, City Administrator
RE: Resolution Relating to the Establishment by the
Housing and Redevelopment Authority in and for
the City of Shakopee of Proposed Tax Increment
District No. 4 and Giving Final Approval Thereto
DATE: November 16, 1984
Introduction
The City Council has established a policy to review all tax
increment districts on a case-by-case basis to determine whether
the district shall pay fiscal disparities or whether it will
be paid City-wide. Council will be considering a resolution
for the Race Track Tax Increment District No. 4 on Tuesday night
and must determine which of these two fiscal disparities funding
alternatives it will select.
Background
The City was not faced with this question with the K -mart project
which was not required to pay fiscal disparities. The Elderly
Highrise project did not pay fiscal disparities either because
multi -family housing is not subject to fiscal disparities.
The City's Downtown Tax Increment District was approved by Council
with the contribution being paid City-wide rather than from
the district. It was shortly after Council approved the Downtown
Tax Increment District that Council adopted the policy discussed
in the introduction above under which it would decide fiscal
disparities contributions on a case-by-case. Council felt comfort-
able with its decision for the Downtown Tax Increment District
because of the relatively small size of the fiscal disparities
contribution which was spread City-wide.
The Pace Track tax increment district No. 4 will have a very
large fiscal disparities contribution. Currently our fiscal
advisor, Springsted, indicates that that fiscal disparities
contribution would equal a minimum of 1.5 to 2 mills. Presently
the City receives from $75,000 to $80,000 per mill with the
School District and County receiving proportionally larger amounts.
Representatives from Miller and Schroeder have discribed the
specific amount of money involved in this issue and have outlined
the pros and cons for City Council. They will have a representative
at Tuesday night's meeting to discuss this further should Council
have additional questions.
Alternatives
There are two resolutions attached to this staff memo that are
identical except for the language relating to the fiscal disparities
contribution. Council needs to approve one or the other of
the resolutions.
1. Approve Resolution No. 2344 with the designation A in the
upper right hand corner which would require that fiscal
disparities be paid on a City-wide basis.
2. Approve Resolution No. 2344 with the designation B in the
upper right hand corner which would require that the tax
increment district pay the fiscal disparities contribution.
This is accomplished by paragraph 4.02 in the resolution.
Summary & Recommendation
The City Council, the City's consultants and City staff have
discussed this issue on a number of occasions. The City will
be making use of tax increment financing on numerous occasions
in the future if it is to proceed successfully with downtown
redevelopment. For my part, I see an underlying importance
in holding down the overall mill levy for City residents and
keeping the political environment at all three local government
levels receptive to further tax increment districts in the City.
Therefore, I would recommend alternative No. 2 for this particular
tax increment project.
Action Reouested
Pass Resolution No. 2344, Relating to the Establishment by the
Housing and Redevelopment Authority in and for the City of Shakopee
of Proposed Tax Increment District No. 4 and Giving Final Approval
Thereto (note this is the resolution with the notation B in
the upper right hand corner).
JKA/jms
Councilmember introduced the following
resolution and moved its adoption:
CITY OF SHAKOPEE
COUNTY OF SCOTT
STATE OF MINNESOTA
RESOLUTION NO. 2344
A RESOLUTION RELATING TO THE ESTABLISHMENT BY
THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND
FOR THE CITY OF SHAKOPEE OF PROPOSED TAX
INCREMENT DISTRICT NO. 4 AND GIVING FINAL
APPROVAL THERETO.
BE IT RESOLVED by the City Council (the "Council") of
the City of Shakopee, Minnesota (the "City"), as follows:
Section 1. Recitals.
1.01. It was proposed and approved on February 14,
1984, by the Housing and Redevelopment Authority in and for
the City (the "Authority"), by Resolution No. 84-2 , that
the Authority establish a new tax increment district within
Minnesota River Valley Housing and Redevelopment Project No.
1 ("Redevelopment Project No. 1"), pursuant to and in
accordance with Minnesota Statutues, Sections 273.71 to
273.86, inclusive, as amended, and that the proposed tax
increment district be designated as Tax Increment District
No. 4 ("Tax Increment District No. 4").
1.02. The Authority has caused to be prepared, and this
Council investigated the facts with respect to a proposed
Tax Increment Financing Plan for proposed Tax Increment
District No. 4 (the "Tax Increment Financing Plan"),
defining more precisely the property included in Tax Incre-
ment District No. 4 and describing the action to be under-
taken by the Authority and the City to establish Tax Incre-
ment District No. 4. The Tax Increment Financing Plan was
adopted by the Authority.
1.03. The Authority and the City performed all actions
required by law to be performed prior to the establishment
of proposed Tax Increment District No. 4 and the adoption of
the proposed Tax Increment Financing Plan relating thereto,
including, but not limited to, the holding of a public
hearing upon published notice as required by law.
Section 2. Findings for the Establishment of Proposed
Tax Increment District No. 4.
2.01. The Council, on February 28, 1984, by Resolution
No. 2228, gave preliminary concept approval to the estab-
lishment of proposed Tax Increment District No. 4, and
found, determined and declared that proposed Tax Increment
District No. 4 constituted a "tax increment district" as
defined in Minnesota Statutes, Section 273.73, Subdivision
9, and further constituted a type of "economic development
district", as defined in Minnesota Statutes, Section 273.73,
Subdivision 12.
2.02. The Council, on said date, also found, determined
and declared that the proposed development, in the opinion
of the Council, could not reasonably be expected to occur
solely through private investment within the reasonably
foreseeable future and, therefore, the use of tax increment
financing was deemed necessary.
2.03. The Council found, 'determined and declared that
the proposed Tax Increment Financing Plan for proposed Tax
Increment District No. 4 conformed to the general plan for
the development and redevelopment of the City as a whole.
2.04. The Council found, determined and declared that
the proposed Tax Increment Financing Plan for proposed Tax
Increment District No. 4 would afford maximum opportunity,
consistent with the sound needs of the City as a whole, for
the development and redevelopment of Redevelopment Project
No. 1 by private enterprise.
2.05. The Council set forth the reasons and supporting
facts for each of the -above stated findings in writing,
attached as an exhibit to Resolution No. 2228.
Section 3. Preliminary Concept Approval of Proposed Tax
Increment District No. 4.
3.01. The City's and the Authority's purpose in
creating Tax Increment District No. 4 was to provide tax
increment financing assistance to Minnesota Racetrack, Inc.,
a Minnesota corporation (the "Company"), or an affiliated
entity, to construct and operate an approximately 390 acre
thoroughbred horseracing facility within the City (the
"Project"). To that end, the City, the Authority and the
Company approved execution of a Contract for Private
Development (the "Development Contract") for the mutual
undertakings of the City, the Authority and the Company with
respect to construction and operation of the Project and the
proposed tax increment assistance therefor.
- 2 -
I v�
3.02. Due to the limitation of the period of time that
tax increment from an economic development tax increment
district may be received by an authority subsequent to
approval of the applicable tax increment financing plan
pursuant to Minnesota Statutues, Section 273.75, Subdivision
1, and the further limitation that the Company's ability -to
undertake the Project was contingent upon the Minnesota
Racing Commission awarding the Company a license to con-
struct and operate the Project, final approval of the Tax
Increment Financing Plan by the Council prior to such time
as the Company was legally authorized to undertake the
Project was not, in the opinion of the City, in the best
interests of either the City, the Authority or the Com-
pany. Based upon the representations of the Company, the
City believed that the Project would not be economically
viable and would not be undertaken unless the maximum
available tax increment assistance was provided to the Com-
pany.
3.03. The Council therefor gave preliminary concept
approval to the proposed Tax -Increment Financing Plan for
Tax Increment District No. 4 and directed staff and counsel
to inform the County of its intent to give approval to said
district after such time as the Company was awarded license
to construct and operate the Project.
Section 4. Final Approval of Proposed Tax Increment
District No. 4.
4.01. Inasmuch as the Company has been awarded a
license by the Minnesota Racing Commission to construct and
operate the Project, the County and School District have
been fully advised of the Project and all necessary actions
required by law (including --a public hearing upon published
notice) have been performed by the Authority and City, the
Council hereby gives final approval to the proposed Tax
Increment District No. 4 and hereby establishes Tax Incre-
ment District No. 4 within Redevelopment District No. 1.
4.02. The officers of the City, the City's financial
advisor and underwriter therefor, and the City's legal
counsel and bond counsel are authorized and directed to
proceed with the implementation of the steps necessary to
certify Tax Increment District No. 4 and to complete all
procedural requirements subsequent to establishment of said
district.
The motion for the adoption of the foregoing resolution
was duly seconded by Councilmember , and
upon vote being taken thereon, the following voted in favor
thereof:
- 3 -
and the following voted against the same:
Wherepon said resolution was declared duly passed and
adopted, and was signed by the Mayor and attested to by the
City Clerk.
Dated: November 20, 1984.
Attest:
City Clerk
- 4 -
Mayor
Councilmember introduced the following
resolution and moved its adoption:
CITY OF SHAKOPEE
COUNTY OF SCOTT
STATE OF MINNESOTA
RESOLUTION NO. 2344
A RESOLUTION RELATING TO THE ESTABLISHMENT BY
THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND
FOR THE CITY OF SHAKOPEE OF PROPOSED TAX
INCREMENT DISTRICT NO. 4 AND GIVING FINAL
APPROVAL THERETO.
BE IT RESOLVED by the City Council (the "Council") of
the City of Shakopee, Minnesota (the "City"), as follows:
Section 1. Recitals.
1.01. It was proposed and approved on February 14,
1984, by the Housing and Redevelopment Authority in and for
the City (the "Authority"), by Resolution No. 84-2, that
the Authority establish a new tax increment district within
Minnesota River Valley Housing and Redevelopment Project No.
1 ("Redevelopment Project No. 1"), pursuant to and in
accordance with Minnesota Statutues, Sections 273.71 to
273.86, inclusive, as amended, and that the proposed tax
increment district be designated as Tax Increment District
No. 4 ("Tax Increment District No. 4").
1.02. The Authority has caused to be prepared, and this
Council investigated the facts with respect to a proposed
Tax Increment Financing Plan for proposed Tax Increment
District No. 4 (the "Tax Increment Financing Plan"),
defining more precisely the property included in Tax Incre-
ment District No. 4 and describing the action to be under-
taken by the Authority and the City to establish Tax Incre-
ment District No. 4. The Tax Increment Financing Plan was
adopted by the Authority.
1.03. The Authority and the City performed all actions
required by law to be performed prior to the establishment
of proposed Tax Increment District No. 4 and the adoption of
the proposed Tax Increment Financing Plan relating thereto,
including, but not limited to, the holding of a public
hearing upon published notice as required by law.
Section 2. Findings for the Establishment of Proposed
Tax Increment District No. 4.
2.01. The Council, on February 28, 1984, by Resolution
No. 2228, gave preliminary concept approval to the estab-
lishment of proposed Tax Increment District No. 4, and
found, determined and declared that proposed Tax Increment
District No. 4 constituted a "tax increment district" as
defined in Minnesota Statutes, Section 273.73, Subdivision
9, and further constituted a type of "economic development
district", as defined in Minnesota Statutes, Section 273.73,
Subdivision 12.
2.02. The Council, on said date, also found, determined
and declared that the proposed development, in the opinion
of the Council, could not reasonably be expected to occur
solely through private investment within the reasonably
foreseeable future and, therefore, the use of tax increment
financing was deemed necessary.
2.03. The Council found, determined and declared that
the proposed Tax.Increment Financing Plan for proposed Tax
Increment District No. 4 conformed to the general plan for
the development and redevelopment of the City as a whole.
2.04. The Council found, determined and declared that
the proposed Tax Increment Financing Plan for proposed Tax
Increment District No. 4 would afford maximum opportunity,
consistent with the sound needs of the City as a whole, for
the development and redevelopment of Redevelopment Project
No. 1 by private enterprise.
2.05. The Council set forth the reasons and supporting
facts for. each. of_ the above __stated findings in writing,
attached as an exhibit to Resolution No. 2228.
Section 3. Preliminary Concept Approval of Proposed Tax
Increment District No. 4.
3.01. The City's and the Authority's purpose in
creating Tax Increment District No. 4 was to provide tax
increment financing assistance to Minnesota Racetrack, Inc.,
a Minnesota corporation (the "Company"), or an affiliated
entity, to construct and operate an approximately 390 acre
thoroughbred horseracing facility within the City (the
"Project"). To that end, the City, the Authority and the
Company approved execution of a Contract for Private
Development (the "Development Contract") for the mutual
undertakings of the City, the Authority and the Company with
respect to construction and operation of the Project and the
proposed tax increment assistance therefor.
- 2 -
3.02. Due to the limitation of the period of time that
tax increment from an economic development tax increment
district may be received by an authority subsequent to
approval of the applicable tax increment financing plan
pursuant to Minnesota Statutues, Section 273.75, Subdivision
1, and the further limitation that the Company's ability to
undertake the Project was contingent upon the Minnesota
Racing Commission awarding the Company a license to con-
struct and operate the Project, final approval of the Tax
Increment Financing Plan by the Council prior to such time
as the Company was legally authorized to undertake the
Project was not, in the opinion of the City, in the best
interests of either the City, the Authority or the Com-
pany. Based upon the representations of the Company, the
City believed that the Project would not be economically
viable and would not be undertaken unless the maximum
available tax increment assistance was provided to the Com-
pany.
3.03. The Council therefor gave preliminary concept
approval to the proposed Tax -Increment Financing Plan for
Tax Increment District No. 4 and directed staff and counsel
to inform the County of its intent to give approval to said
district after such time as the Company was awarded license
to construct and operate the Project.
Section 4. Final Approval of Proposed Tax Increment
District No. 4.
4.01. Inasmuch as the Company has been awarded a
license by the Minnesota Racing Commission to construct and
operate the Project, the County and School District have
been fully advised of the Project and all necessary actions
required by law (including. a public hearing upon published
notice) have been performed by the Authority and City, the
Council hereby gives final approval to the proposed Tax
Increment District No. 4 and hereby establishes Tax Incre-
ment District No. 4 within Redevelopment District No. 1.
4.02. The Council hereby elects the method of tax
increment calculation set for a Minnesota Statutes, §273.76,
Subdivision 3, Clause (b).
4.03. The officers of the City, the City's financial
advisor and underwriter therefor, and the City's legal
counsel and bond counsel are authorized and directed to
proceed with the implementation of the steps necessary to
certify Tax Increment District No. 4 and to complete all
procedural requirements subsequent to establishment of said
district.
- 3 -
The motion for the adoption of the foregoing resolution
was duly seconded by Councilmember and
upon vote being taken thereon, the following voted in favor
thereof:
and the following voted against the same:
Wherepon said resolution was declared duly passed and
adopted, and was signed by the Mayor and attested to by the
City Clerk.
Dated: November 20, 1984.
Attest:
City Clerk
- 4 -
Mayor
CITY OF SHAKOPEE
COUNTY OF SCOTT
STATE OF MINNESOTA
RESOLUTION NO. ; 3y�
A RESOLUTION APPROVING AN AMENDMENT TO THE
AMENDED CONTRACT FOR PRIVATE DEVELOPMENT WITH
MINNESOTA RACETRACK, INC., AND TAKING CERTAIN
OTHER ACTIONS WITH RESPECT THERETO
BE IT RESOLVED by the City Council (the "Council") of
the City of Shakopee (the "City"), as follows:
Section 1. Recitals.
1.01. The Authority, the City and Minnesota Racetrack,
Inc. ("MRI") have entered into an Amended Contract for
Private Development, dated as of June 12, 1984 (the "First
Amended Development Agreement"), with respect to the
acquisition and construction within the City by MRI of a
thoroughbred horseracing facility (the "Project"). The
First Amended Contract for Private Development superseded a
Contract for Private Development, dated as of February 28,
1984 (the "Original Development Agreement"). The Original
Development Agreement was negotiated and executed in antici-
pation of award of Class A and Class B racing franchises to
MRI by the Minnesota Racing Commission and was amended to
accomodate the interests of Twin City Federal Savings and
Loan Association, the proposed construction lender for the
Project ("TCF").
1.02. As a result of a revised financing plan for the
Project, including substitution of industrial development
bond financing for the original conventional financing to be
provided by TCF, and certain changes in law and other cir-
cumstances subsequent to execution of the First Amended
Development Agreement, the City, the Authority and MRI exe-
cuted an Agreement to Amend, Modify and Change Prior Agree-
ments, dated as of October 15, 1984, providing, among other
things, for further amendment of the First Amended Develop-
ment Contract to accomodate the revised financing plan and
facilitate financing of the Project.
1.03. The Council has received and reviewed the pro-
posed amendment to the First Amended Development Agreement,
in the form attached hereto as Exhibit A (the "Second
Amended Development Agreement") and are of the opinion that
execution of the Second Amended Development Agreement will
facilitate financing and construction of the Project and is
in the best interests of the City and the Authority.
Section 2. Ar)T)roval of Second Amended Development
Agreement.
2.01. The City hereby approves the execution of the
Second Amended Development Agreement in substantially the
form attached hereto, and directs the Mayor, City
Administrator: and the City Clerk to execute the Second
Amended Development Agreement and such other documents as
shall be deemed necessary to effect the intent of the Second
Amended Development Agreement; together with -juch necessary
and appropriate variations, omissions and insertions as
permitted or required or as the Mayor, in his discretion,
shall determine, and the execution thereof by the Mayor
shall be conclusive evidence of such determination.
ADOPTED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE ON
November 20, 1984.
ATTEST:
City Clerk
Mayor
- 2
11/14/84 DRAFT
SECOND
AMENDED
CONTRACT
FOR
PRIVATE DEVELOPMENT
By and Among
THE CITY OF SHAKOPEE, MINNESOTA,
THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF
SHAKOPEE, MINNESOTA
And
MINNESOTA RACETRACK, INC.
This document drafted by: O'CONNOR & HANNAN
3800 IDS Center
Minneapolis, Minnesota 55402
TABLE OF CONTENTS
(This Table of Contents is not part of the Contract
for Private Development and is only for
convenience of reference.)
Page
PARTIES....................................................1
PREAMBLE...................................................1
ARTICLE I - DEFINITIONS
Section 1.1. Definitions ...........................
ARTICLE II - REPRESENTATIONS, WARRANTIES AND COVENANTS
Section 2.1. Representations, Warranties and
Covenants by the Authority.. 2-1
Section 2.2. Representations, Warranties and
Covenants by the City ....... .........
.2-1
Section 2.3. Representations, Warranties and
Covenants by the Company..............2-3
ARTICLE III - LAND TRANSACTIONS; UNDERTAKINGS OF THE
ARTICLE V - INSURANCE AND CONDEMNATION
Section5.1. Insurance.............................5-1
Section 5.2. Condemnation ..........................5-4
Section 5.3. Modification for Benefit of
Mortgagees............................5-5
(i)
AUTHORITY
Section
3.1.
Purchase of Development Property
by the Company; Subsequent
Conveyance and Reconveyance ...........
3-1
Section
3.2.
Qualifying Improvements...............3-1
Section
3.3.
Purchase of the Development
Property by the Authority;
Purchase Price ........................3-1
Section
3.4.
Reconveyance of the Development
Property; Development Property
Deed; Costs ...........................3-4
ARTICLE IV -
CONSTRUCTION OF MINIMUM IMPROVEMENTS
Section
4.1.
Construction of Minimum
Improvements..........................4-1
Section
4.2.
Construction Plans ........... ........4-1
Section
4.3.
Commencement and Completion of
Construction..........................4-2
Section
4.4.
Certificate of Completion.............4-3
ARTICLE V - INSURANCE AND CONDEMNATION
Section5.1. Insurance.............................5-1
Section 5.2. Condemnation ..........................5-4
Section 5.3. Modification for Benefit of
Mortgagees............................5-5
(i)
ARTICLE VI
- ASSESSMENT AGREEMENT
OF DEFAULT
Section
6.1.
Execution of Assessment Agreement.....6-1
Section
Section
6.2.
Real Property Taxes ......... .........6-1
Section
Section
6.3.
Certain Guaranties; Letter of
Section
7.3.
Limitations on Financial
Credit................................6-2
Upon Happening of Event Subsequent
Section
6.4.
Payment and Performance Bond ...........
6-3
ARTICLE VII
- UNDERTAKINGS OF THE CITY AND AUTHORITY; TAX
OF DEFAULT
Section
INCREMENT BONDS
Limitation Upon Encumbrance of
Section
7.1.
Issuance of Tax Increment Bonds .......
7-1
Section
7.2..
Provision of Offsite Improvements .....
7-1
Section
7.3.
Limitations on Financial
Notice of Default; Copy to
Upon Happening of Event Subsequent
Undertakings of the city..............7-3
Mortgagee.............................8-2
Section
7.4.
Use of Tax Increments.................7-4
Mortgagee's Option to Cure
ARTICLE VIII
- MORTGAGE FINANCING
OF DEFAULT
Section
8.1.
Limitation Upon Encumbrance of
Events of Default Defined ............
10-1
Section
Property..............................8-1
Remedies on Default..................10-1
Section
8.2.
Approval of Mortgage..................8-1
Revesting Title in the Authority
Section
8.3.
Notice of Default; Copy to
Upon Happening of Event Subsequent
Mortgagee.............................8-2
to Conveyance to the Company .........
Section
8.4.
Mortgagee's Option to Cure
Resale of Reacquired Property;
Defaults...................... .......8-2
Disposition of Proceeds..............10-4
Section
8.5.
Authority's Option to Cure Default
No Remedy Exclusive ...... ... .......10-6
Section
onMortgage ..... .... ................8-2
No Additional Waiver Implied by
Section
8.6.
Subordination and Modification for
One Waiver ...........................10-6
the Benefit of Mortgagees.............8-3
ARTICLE IX - PROHIBITIONS AGAINST ASSIGNMENT AND TRANSFER;
INDEMNIFICATION
Section 9.1. Status of Company; Transfer
of Substantially All Assets ........... 9-1
Section 9.2. Prohibition Against Transfer of
Property and Assignment of
Agreement. ...........................9-1
Section 9.3. Release and Indemnification
Covenants.............................9-3
Section 9.4. Approvals.............................9-4
ARTICLE X -
EVENTS
OF DEFAULT
Section
10.1.
Events of Default Defined ............
10-1
Section
10.2.
Remedies on Default..................10-1
Section
10.3.
Revesting Title in the Authority
Upon Happening of Event Subsequent
to Conveyance to the Company .........
10-2
Section
10.4.
Resale of Reacquired Property;
Disposition of Proceeds..............10-4
Section
10.5.
No Remedy Exclusive ...... ... .......10-6
Section
10.6.
No Additional Waiver Implied by
One Waiver ...........................10-6
Section
10.7. Agreement to Pay Attorney's Fees
and Expenses.. .....................10-6
14
ARTICLE XI
- ADDITIONAL PROVISIONS
Section
11.1. Restrictions on Use..................11-1
Section
11.2. Conflicts of Interest......... .....11-1
Section
11.3. Provisions Not Merged With Deed ......
11-1
Section
11.4. Titles of Articles and Sections......
11-1
Section
11.5. Notices and Demands..................11-1
Section
11.6. Counterparts .........................11-2
Section
11.7. Modification .........................11-2
Section
11.8. Law Governing ........................11-2
Section
11.9. Legal Opinions .......................
11-2
Section.
11.10 First Amended Development Agree-
ment Rendered Null and Void;
Affect on Agreement to Amend.........
11-2
ARTICLE XII
- TERMINATION OF AGREEMENT
Section
12.1. The Company's Options to
Terminate. ..................12-1
Section
12 Action to Terminate..................12-1
Section
12 Effect of Termination................12-1
TESTIMONIUM
.............................................12-2
SIGNATURES .........
........ ....... ..................... .12-3
EXHIBIT A -
Development Property ..... ........... ....... ..A-1
EXHIBIT B -
Certificate of Completion and Release of
Forfeiture......................... ..........
B-1
EXHIBIT C -
Permitted Encumbrances— ....................
C-1
EXHIBIT D -
Qualifying Improvements ......................D-1
EXHIBIT E -
Certificate as to Completion and Costs
of Qualifying Improvements— ... o ....... o ....
E-1
CONTRACT FOR PRIVATE DEVELOPMENT
THIS AGREEMENT, made on or as of the 20th day of Novem-
ber, 1984, by and among the City of Shakopee, Minnesota (the
"City"), a municipal corporation and political subdivision
organized and existing under the Constitution and laws of
the State of Minnesota, the Housing and Redevelopment Au-
thority in and for the City of Shakopee, Minnesota (the
"Authority"), a public body corporate and politic, and Min-
nesota Racetrack, Inc., a corporation organized and existing
Under the laws of the State of Minnesota (the "Company"),
and aending the Amended Contract for Private Development,
dated June _121_1984, by and among the City, the Authority
and the Company;
WITNESSETH:
WHEREAS, the City has the powers of a municipal corpora-
tion under the laws and Constitution of the State of Minne-
sota; and
WHEREAS, the Authority has all the powers of a housing
and redevelopment authority under the Municipal Housing and
Redevelopment Act, Minnesota Statutes, Sections 462.411 to
462.716, inclusive, as amended (the "Housing and Redevelop-
ment Act"); and
WHEREAS, in furtherance of the objectives of the Housing
and Redevelopment Act, the Authority is engaged in carrying
out the redevelopment project known as Minnesota River Val-
ley Housing and Redevelopment Project No. 1 (hereinafter
referred to as the "Redevelopment Project") in an area
(hereinafter referred to as the "Project Area") located in
the City; and
WHEREAS, as of the date of this Agreement there has been
prepared and approved by the Authority and the City Council
of the City, pursuant to the Housing and. Redevelopment Act,
the Modified Redevelopment Plan for Minnesota River Valley
Housing and Redevelopment Project No. 1 (which plan, as
amended, and as it may be further amended, is hereinafter
referred to as the "Redevelopment Plan"), and
WHEREAS, as of the date of this Agreemen there has been
prepared and approved by the Authority andAapproved by the
City, pursuant to Minnesota Statutes, Section 273.74, a
proposed Tax Increment Financing Plan for Tax Increment
Financing District No. 4 of the Redevelopment Project (which
plan, as finally adopted and as it may be amended, and as it
may be further amended, is hereinafter referred to as the
"Tax Increment Financing Plan"), providing for the use. of
tax increment financing in connection with the Redevelopment
Project; and
WHEREAS, the acquisition and the subsequent sale or
lease of the potential development property to private de-
velopers for commercial development is -an objective of the
Redevelopment Plan; and
WHEREAS, in order to achieve the objectives of the Rede-
velopment Plan and particularly to make the land in the
Project Area available for development by private enterprise
in conformance with the Redevelopment Plan, the Authority
has determined to provide substantial aid and assistance in
connection with the Redevelopment Plan through the financing
of certain of the public costs of development within the
Project Area; and
WHEREAS, the City and the Authority believe that the
construction of an approximately 390 acre horse -racing fac-
ility within the Project Area by the Company pursuant to
this Agreement, and fulfillment generally of this Agreement,
are in the best interests of the City and the Authority and
in accord with the public purpose and provisions. of the
applicable state and local laws and requirements under which
the Redevelopment Plan has been undertaken and is being as-
sisted; and
WHEREAS, the City, the Authority and the Company have
previously executed an Amended Contract for Private Develop-
ment for the Project, dated as of June 12_ 1984,1 amending
the original Contract for Private Development between the
City, the Company and the Authority, dated as of February
28. 1984; and
WHEREAS, for good and valuable consideration and to make
the Project economically more feasible the City, the Author__
ity and the Com any have executed an Agreement to Amend,
Modify and Change Prior Agreements, dated as of October 15,
_1984 ( the "Agreement to Amend' ) pursuant o w icn the city,
the Authority and the Company aqreed to further amen t is
Contract for Private Development in certain respects, and
WHEREAS, 2ursuant to the Agreement to Amend, the Company
a ree that, to the extent feasible, it would apply certain
investment earnings on the City's Series B Bonds (as defined_
herein) to reduce the amount of tax increment subsidy to be
made to the Project in the form of a $3,000,000 loan pur-
suant to the Amended Contract for Private Development, an
the Company has informed the City and the Authority a
such loan is no longer necessary;
- 2 -
NOW, THEREFORE, in consideration of the premises and the
mutual obligations of the parties hereto and the covenants
of the parties made in the Lgreement to,,,,Amend, each of them
does hereby covenant and agree with the other as follows:
- 3 -
ARTICLE I
Definitions
Section 1.1. Definitions. In this Agreement, unless a
different meaning clearly appears from the context:
"Agreement" means this Second:Amended Contract for Pri-
vate Development by and among the City, the Authority and
the Company, as the same may be from time to time modified,
amended or supplemented.
"Agreement to Amend" means the Agreement to Amend, Mod-
ify and Change Prior Agreements, dated as of October 15,
1984, between the City, the Authority and the Comcanv.
"Articles and Sections" mentioned by number only are the
respective Articles and Sections of this Agreement so num-
bered.
"Assessor's Minimum Market Value" means the agreed mini-
mum market value for calculation of real property taxes
certified by the Assessor for the City for the Improved
Parcel (exclusive of the Option Property) pursuant to the
Assessment Agreement.
"Assessment Agreement" means theLAssessment `Agreement
executed 2ursuant to Article VI of the First Amended Agree-
ment and paragraph 1 of the Agreement to Amend, by and be-
tween the Authority and the Company, dated as of October 29-
1984,Ncertified by the Assessor for the City and acknow-
ledged by Valley Industrial Company II, Twin City Federal
Savings and Loan Association and Security Pacific National
Banks pursuant to the provisions and requirements of
Minnesota Statutes, Section 273.76, Subdivision 8, estab-
lishing the Assessor's Minimum Market Value.
"Authority" means the Housing and Redevelopment Author-
ity in and for the City of Shakopee, Minnesota.
"Authority Closing Date" means the date upon which the
Authority and the Company close on the purchase of the De-
velopment Property by the Authority and the reconveyance
thereof /(o the Company pursuant to Article III.
"Building Inspector" means the building inspector of the
City.
"Certificate of Completion" means the certification, in
the form of the Certificate attached as Exhibit B hereto,
provided to the Company pursuant to Section 4.4, upon com-
pletion of the Minimum Improvements.
1 - 1
"Certificate of Qualifying Improvements" means the cer-
tification, substantially in the form of the Certificate
attached as Exhibit E hereto, provided by the Company to the
Authority upon satisfactory completion of the Qualifying
Improvements as provided in Section 3.2.
"City" means the City of Shakopee, Minnesota.
"Closing Date" shall have the meaning assigned to it in
Section 3.1.
"Company" means Minnesota Racetrack, Inc., a corporation
organized and existing under the laws of Minnesota, or its
successors or assigns under this Agreement. A
"Condemnation Award" means the amount remaining from an
award to the Company for the acquisition of title to and
possession of the Improved Parcel, or any material part
thereof, after deducting all expenses (including fees and
disbursements of counsel) incurred in the collection of such
award.
"Construction Plans" means the plans, specifications,
drawings and related documents on all construction work to
be performed by the Company on the Development Property,
including all on-site improvements to be performed, in-
stalled or constructed upon the Development Property pur-
suant to this Agreement, and including adequate specifica-
tions detailing all Qualifying Improvements to be performed
on the Development Property. Such plans shall, at a mini-
mum, include, for each building or other structure to be
constructed on the Development Property, at least the fol-
lowing: (i) site plan; (ii) foundation plan; (iii) basement
plans; (iv) floor plan for each floor; (v) cross sections of
each (length and width); (vi) elevations (all sides); and
(vii) landscape plan; and shall include as well adequate
plans, drawings and specifications relating to all drive-
ways, walks, parking, and other improvements to be con-
structed upon the Development Property by the Company. Thee
Site Plan submitted by the Company to the Building Inspector
for the City, if approved by the Building Inspector and
acceptable to the Authority, may serve as the Construction
Plans.
"Council" means the City Council of the City.
"County" means the County of Scott, Minnesota.
"Development Property" means the real property described
in Exhibit A of this Agreement.
1 - 2
"Development Property Deed" means a quitclaim deed used
to convey the Development Property from the Authority,to the
Company.
"Environmental Assessment Worksheet" means the Environ-
mental Assessment Worksheet,- if any, prepared pursuant to
Minnesota Statutes, Section 116D.04, for the proposed im-
provements to the Development -Property.
"Event of Default" means an action by the Company listed
in Section 10.1.
"First Mortgage" means(ithe Morta
ment, dated as of October ^15, 1984
First Trust Company of Saint Paul b�
gage and Security Agreement, dated
executed by the Company in favor of
ings and Loan Association and Securil
by the Company, and any other mortq
shall approve by resolution as a Fir!
"First Amended Agreement"
for Private Development, date
the City, the Authority and
the Agreement.
means
I as of
the Cor
age and Security Agree-
, executed in favor of
the Company, the Mort -
as of October 30, 1984,
Twin City Federal Sav-
:y Paci is NatioH-a-1 Ban
age which the Authority
;t Mortaaae.
hat Amended uont
.ine 12, 1984, bet
nv and supersede
"Franchise" means the Class A and Class B racing fran-
chises to be awarded by the Racing Commission for operation
of a horse -racing facility with pari-mutuel wagering in the
seven -county metropolitan area.
"Guaran ee" or "Guaran ees" means any Guarantee or
Guaran ees provided to the City pursuant to Section 6.3(b).
"Holder" means the owner of a Mortgage.
"Housing and Redevelopment Act" means the statutes lo-
cated' at Minnesota Statutes, Sections 462.411 through
462.716, inclusive, as amended.
"Improved Parcel" means the Development Property and the
completed Minimum Improvements.
"Indenture" means the Indenture of Trust executed w
respect to the Tax Increment Bondsr as the same shall
amended or supplemented.
"Letter of Credit" means any Letter of Credit provided
to the City pursuant to Section 6.3(a).
"Minimum Improvements" means the approximately 390 acre
horse -racing facility and all other improvements, including
1 - 3
driveways, walks, landscaping, housing, stables and parking
and fixtures and equipment, and all Qualifying Improvements,
to be constructed by the Company upon the Development Prop-
erty pursuant to this Agreement, as such improvements are
described in the Construction Plans.
"Minnesota Environmental Policy Act" means the statutes
located at Minnesota Statutes, Sections 116D.01 et seq., as
amended.
"Minnesota Environmental Rights Act" means the statutes
located at Minnesota Statutes, Sections 116B.01 et seq., as
amended.
"Mortgage" means any mortgage or security agreement in
which the Company has granted a security interest in the
Development Property, or any portion or parcel thereof, or
any improvements constructed thereon, and which is a per-
mitted encumbrance pursuant to the provisions of Article
VIII.
"National Environmental Policy Act" means the federal _
law located at 42 U.S.C., Sections 4331 et seq., as amended.
"Net Proceeds" means any proceeds paid by an insurer to
the Company, the Holder of any Mortgage, or the Authority
under a policy or policies of insurance required to be pro-
vided and maintained by the Company pursuant to Article V
and remaining after deducting all expenses (including fees
and disbursements of counsel) incurred in the collection of
such proceeds.
"Offsite Improvements" means the improvements to be
undertaken by the Authority or the City pursuant to Section
7.2.
, _r DrnnaYi-v'I
legally described in Section 9.2 hereQr.
"Party" means either the Company, the Authority or the
City.
"Parties" means the Company, the Authority and the City.
"Permitted Encumbrances" means the encumbrances de-
scribed in Exhibit C to this Agreement.
"Project" means the Minimum Improvements and the Devel-
opment Property.
"Project Area" means the real property located within
the boundaries of the Redevelopment Project.
/A
1 - 4
"Purchase Price means the price to be paid by t;he Au-
thority to the Company pursuant to Section 3.3(d) upon pur-
chase of the Development Property.
"Qualifying Improvements" means those improvements
listed on Exhibit D hereto which the Company plans to con-
struct, install and perform on the Development Property; all
Qualifying Improvements shall be improvements which would be
eligible to be financed with tax increment bond proceeds
pursuant to the,provisions of Minnesota Statutes, Chapters
273 and 462, and include, but are not necessarily limited
to, site clearing and preparation, soil correction, berming,
construction of sidewalks, curbs, curb cuts, streetscape
amenities, ponding and drainage improvements and facilities,
installation of trunk line utilities and any other improve-
ments of a predominantly public nature.
"Racing Commission" means the Minnesota Racing Commis-
sion.
"Redevelopment Plan" means the Authority's Modified
Housing and Redevelopment Plan for Minnesota River Valley
Housing and Redevelopment Project No. 1, as amended and as
it shall be amended.
"Redevelopment Project" means Minnesota River Valley
Housing and Redevelopment Project No. 1 in the City created
by the Authority.
"Repurchase Price means the sum to be paid by the Com-
pany to the Authority upon repurchase of the Development
Property by the Company pursuant to the terms of Section
3.4.
"Series A Bonds" means the City's $20,0 0
Faci i.ty Revenue Bonds (Shakopee Racetrack Project) Seri
1984 A(1) and the City's 520.000.00 nor
Bonds (Shakopee Racetrack Project) Series 1984-A(2)..
"Series B Bonds" means the
Facility Revenue Bonds (Shakopee Racetrack Project
"State" means the State of Minnesota.
"Tax Increment Bonds" means the tax increment rev_
bonds which the Authority will issue to finance acquisition
of the Develo ment ProoertV ursuant to Section -3.3-here-
of.
.3here-
o . The term "Tax Increment Bonds" shall also include any
obligations issued to refund the Tax Increment Bonds.
1 - 5
"Tax Increment District" means Tax Increment Financing
District No. 4, to be formed in the Project Area by the
Authority with the approval of the City.
"Tax Increment Financing Act" means the statutes located
at Minnesota Statutes, Sections 273.71 through 273.78, in-
clusive, as amended.
"Tax Increment Financing Plan" means the Authority's Tax
Increment Financing Plan for the Tax Increment District.
"Tax Official" means any City or County Assessor, County
Auditor, or City, County or State Board of Equalization; the
Commissioner of Revenue of the State; or any State or Fed-
eral District Court, the Tax Court of the State or the State
Supreme Court.
"Termination Date" means the date of expiration of the
Assessment Agreement as provided in Section 6.1.
"Trustee" means the trustee at any time for the holders
of the Tax Increment Bonds under the Indenture of Trust for
the Tax Increment Bonds.
"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 Minimum Improvements, litigation commenced by third
parties which, by injunction or other similar judicial ac-
tion 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 or the Authority)
which directly result in delays.
ARTICLE II
Representations, Warranties and Covenants
Section 2.1. Representations, Warranties and Covenants
by the Authority. The Authority represents, warrants and
covenants that:
(a) The Authority has all the powers of a housing
and redevelopment authority under the laws of the
State. Under the provisions of the Housing and Redevel-
opment Act, the Authority has the power to enter into
this Agreement and carry out its obligations hereunder.
(b) The Redevelopment Project is a "redevelopment
project" within the meaning of the Housing and Redevel-
opment Act and was created, adopted and approved in
accordance with the terms- of the Housing and Redevelop-
ment Act.
(c) The Authority has examined this Agreement, and
has determined that its terms and provisions are in
accordance with the objectives embodied in the Redevel-
opment Plan, and are in the best interests of the Au-
thority and the City.
d The Tax Increment District is a "tax increment
financing district" withi the meaning of the Tax Incre-
ment Financing Act, and has been created, adopted and
approved in accordance wit the—provisions of the Tax
Increment Financing Act.
(e) Subject to fulfillment of the terms and con-
ditions of this Agreement by the Company, the Authority
shall purchase the Development Property and reconvey the
Development Property to the Company as provided in Arti-
cle III for uses in accordance with the Redevelopment
Plan and this Agreement.
(f) The Authority makes no representation or war-
ranty, either express or implied, as to the Development
Property or its condition or soil conditions thereon, or
that the Development Property shall be suitable for the
Company's purposes or needs.
speci ie
its best
amount su
the Purch
Upon satisfaction of the condition precede
inSection 3 2(b), the Authority will exerci
efforts to issue the Tax Increment Bonds in
fficient to provide net bond proceeds equal
ase Pri
2 - 1
Section 2.2. Representations, Warranties and Covenants
by the City. The City represents, warrants and covenants
that:
(a) The City is a municipal corporation and poli-
tical subdivision organized under the provisions of the
Constitution and the laws of the State.
(b) The City has the power to enter into this
Agreement and carry out its obligations hereunder pursu-
ant to the powers granted to it by the Constitution and
laws of the State.
(c) The Redevelopment Project is a "housing and
redevelopment project" within the meaning of the Housing
and Redevelopment Act and was created, adopted and ap-
proved in accordance with the terms of the Housing and
Redevelopment Act.
(d) The Tax Increment District is a "tax increment
financing district" within the meaning of the Tax Incre-
ment Financing Act, and has been created, adopted and
approved in accordance --tti the provisions of the Tax
Increment Financing Act.
(e) The City has examined this Agreement, and has
determined that its terms and provisions are in accor-
dance with the objectives embodied in the Redevelopment
Plan, and are in the best interests of the City and the
Authgrity.-
f"' Minimum Improvements constitute a permit-
ted use under the zoning ordinance of the City.
(g) The City has approved the Environmental
Assessment Worksheet prepared by Barton-Aschman Associ-
ates, Inc: and submitted it to the Minnesota Environ-
mental Quality Board, and has submitted the Environ-
mental Impact Statement to the Minnesota Environmental
Quality Board on or about February 17; 1984, and the
City has no knowledge of any reason why such actions
will not be fully adequate to comply with the National
Environmental Policy Act and the Minnesota Environmental
Policy Act. The City has received no notice or communi-
cation from any local, state or federal official that
the activities of the Company or the City with respect
to the Development Property may or will be in violation
of any environmental law or regulation (other than those
notices or communications, if any, of which the Company
has been notified). The City is aware of no state or
federal claim filed or planned to be filed by any party
relating to any violation of any local, state or federal
2 - 2
environmental law, regulation or review procedure, nor
is the City aware of any violation of any local,. state
or federal law, regulation or review procedure which
would give any person a valid claim under the Minnesota
Environmental Rights Act or other state or federal en-
vironmental statute.
(h) -_The City makes no representation or warranty,
either express or implied, as to the Development Prop-
erty or its condition or the soil conditions thereon, or
that the Development Property shall be suitable for the
Company's purposes or needs.
(i) The City by resolution has made the findings
requi'r c by Section 273.74, Subdivision 3, of the Tax
Increment Financing Act for the Tax Increment District,
and has set forth in writing the reasons and supporting
facts for each determination.
Section 2.3. Representations, Warranties and Covenants
by the Company. The Company represents, warrants and cove-
nants that:
(a) The Company is a corporation duly organized
under the laws of the State, is not in violation of any
provisions of its Articles of Incorporation or Bylaws or
the laws of the State and has power to enter into this
Agreement and to perform its obligations hereunder.
(b) In the event the Development Property is con-
veyed to the Company by the Authority, then the Company
will construct, operate and maintain the Minimum Im-
provements upon the Development Property in accordance
with the terms of this Agreement, the Redevelopment Plan
and all local, state and federal laws and regulations
(including, but not limited to, environmental, zoning,
building code and public health laws and regulations).
(c) The Development Property and the Minimum Im-
provements will be acquirednd constructed by the Com-
pany at a cost of at least $43,245,000.
(d) The Company is aware of the actions taken by
the Authority and the City with respect to local, state
and federal environmental laws and regulations, includ-
ing the National Environmental Policy Act of 1969 and
the Minnesota Environmental Policy Act, and the Company
has no knowledge of any reason why such actions will not
be fully adequate to comply with such laws. The Company
has received no notice or communication from any local,
state or federal official that the activities of the
Company, the Authority or the City with respect to the
2 - 3
Project may be or will be in violation of any environ-
mental law or regulation (other than those notices or
communications, if any, of which the Authority and the
City have been notified). With respect to the Project,
the Company is aware of no violation of any local, state
or federal environmental law, regulation or review pro-
cedure, nor of any facts which would give any person a
valid claim under the Minnesota Environmental Rights
Act.
(e) The Company will use its best efforts to con-
struct the Minimum Improvements in accordance with all
local, state or federal energy -conservation laws or
regulations.
(f) The Company will use its best efforts to ob-
tain, in a timely manner, all required permits, licenses
and approvals, and to meet, in a timely manner, all re-
quirements of all applicable local, state and federal
laws and regulations which must be obtained or met be-
fore the Minimum Improvements may be lawfully con-
structed.
(g) The execution and delivery of this Agreement,
the consummation of the transactions contemplated
hereby, and the fulfillment of or compliance with the
terms and conditions of this Agreement and the Assess-
ment Agreement are not prevented or limited by, or in
conflict with, or will result in a breach of, the terms,
conditions or provisions of the articles of incorpora-
tion and bylaws of the Company or any evidences of in-
debtedness, agreements or instruments of whatever nature
to which the Company is now a party or by which it is
bound, or will constitute a default under any of the
foregoing.
,(h) The Company will cooperate with the Authority
and the City with respect to any litigation commenced
with respect to the Project.
(i) The financing commitments which the Company
has obtained to finance construction of the Minimum
Improvements, together with financing provided by the
Authority and the City pursuant to this Agreement, will
be sufficient to enable the Company to successfully
complete the Minimum Improvements in conformance with
the Construction Plans.
(j) The Company will cooperate fully with the City
and the Authority in the resolution of any traffic,
parking, trash removal or public safety problems which
may arise in connection with the construction and opera-
tion of the Project.
2 - 4
(k) The Company would not undertake the Project
without the financing provided by the Authority and the
City pursuant to this Agreement.
(1) The Company expects that, barring Unavoidable
Delays, the Project will be substantially completed by,
and will open in, the month of June, 1985.
(m) The Com any will pay to the City_a one time
fee of $75,000 for issuance of the Series A Bonds and
the Series B Bonds The Company will also pay to the
City an annual fee of 1/8 of one percent of the prince
nal balance of the Series A Bonds then Outstandin as
ae ined in the Su elemental Indentures of Trust, dated
s of October 18, 1984, executed between the Cit nd
a
first Trust with respect to the Series A Bonds said
fee to commence January 1, 1995 and to thereafter be
paya le January 1 of each ear so lon a P be
any eries A Bonds Outstanding. The Company further
agrees to a all consu an s tees an attorne 's fees
E-n—curred by the City and the Authority with respect to
the ies A Bonds and the Series B Bonds
And the Amend-
Fe-nt of this Agreement -
2 - 5
ARTICLE III
Land Transactions; Undertakings of the Authority
Section 3.1. Purchase of Development Property by the
Company, Subsequent Conveyance and Reconveyance. The par-
ties intend that the Company shall initially acquire the
Development Property in its entirety.. Company repre-
sents that it or parties affiliated with it presently own
the Development Property in its entirety. The
letioneofthen the
intend that the Authority shall, upon the comp
requisite Qualifying Improvements by the Company, purchase
the Development Property from the Company for an amount
equal to the Purchase Price, and reconvey title and pos-
session of the Development Property to the Company for an
amount equal to the Repurchase Price, all pursuant to the
terms and provisions of Sections 3.3 and 3.4.
Section 3.2. Qualif in Improvements.Ahe C pany has
Y 9 P
commenced construction of Qualifying Improvements Subject
to Unavoidable Delays, the Company shall proceed diligently
with the construction, installation and performance of such
Qualifying Improvements. Upon substantial completion of the
requisite Qualifying Improvements, the Company shall submit
to the Authority a certification as to such completion and
as to the actual costs incurred by the Company for such
Qualifying Improvements substantially in the form of the
Certificate of Qualifying Improvements. The Qualifying
Improvements shall be completed in substantial conformance
with the Construction Plans. The requisite Qualifying Im-
provements are those listed on Exhibit D attached to this
Agreement or otherwise permitted which are first completed,
whether or not other Qualifying Improvements have been com-
menced, at an aggregate cost of $3,000,000 or such lesser
amount as has been expended prior to the time that construc-
tion of the Minimum Improvements, in the judgment of the
Company, necessitates conveyance and reconveyance of the
Development Property.
Section 3.3. Purchase of the Development Property b
the Authority; Purchase Price.
(a) Purchase of Development Property. Subject to
the provisions of paragraphs (b) and (c) of this Section
3.3, within forty-five (45) days of receipt of the Cer-
tificate of Qualifying Improvements from the Company,
the Authority will purchase the Development Property
from the Company for the sum of the Purchase Price, said
Purchase Price to be calculated as provided in Section
3.3(d). The Company shall deliver title of the Develop-
ment Property to the Authority by quitclaim deed.
3 - 1
payable in full by the Authority at closing. The Pur-
chase Price shall be calculated as follOwsJJ The Pur: -
chase Price shall be the total of the costs of the re-
quisite Qualifying Improvements as certified in the Cer-
ificate or �Qualifying Improvements, up to a maximum of 3,000,0001h In no event shall the Purchase Price to be
paid by the Authority exceed $3,000,000. Therefore, if
the certified cost of the Qualifying Improvements shall
n be less than 3,000,000, the Purchase Price shall be
I t such cost; if the certified cost of the Qualifying im-
provements shall be equal to or greater than 3,000,000,
the Purchase Price shall be the sum of 3,000,000.
Section 3.4. Reconveyance of the Development Property;
Development Property Deed; Costs.
(a) Reconveyance; Development Property Deed.
Subsequent to purchase of the Development Property by
the Authority, the Authority shall immediately reconvey
marketable title and possession of the Development Prop-
erty to the Company under a quitclaim deed (the "Devel-
opment Property Deed") for the sum of the Repurchase
Price; provided, however, that the Authority shall have
no obligation to deliver title to the Development Prop-
erty to the Company which is superior in any respect to
the title received by the Authority from the Company.
Unless the Company and the Authority shall otherwise
agree, the reconveyance shall occur on the Authority
Closing Date. After the conveyance of the Development
Property, the Company's use of the Development Property
shall be subject to all of the conditions, convenants,
restrictions and limitations imposed by this Agreement
and the Development Property Deed. After the recon-
veyance of title to the Development Property, the Com-
pany's use of the Development Property shall also be
subject to the Permitted Encumbrances and building and
zoning laws and ordinances and all other local, state
and federal laws and regulations.
(b) Costs. Unless otherwise mutually agreed by
the Authority and the Company, the execution and deliv-
ery of all deeds shall be made at the principal office
of the Authority. The Development Property Deed shall
be in recordable form and shall be promptly recorded,
with this Agreement attached thereto as an Exhibit,
unless previously recorded. The Company shall pay all
costs for recording the Development Property Deed, if
any; the Development Property Deed will be processed by
the Parties to be exempt from recording fees and deed
tax to the extent possible. The Company shall also pay
at closing all costs incurred by the Authority for prep-
aration of the Development Property Deed.
3 - 3
(c) Reurchase Pric
be the sum of 1.00.
The Repurchase Price shall
3 - 4
ARTICLE IV
Construction of Minimum Improvements
Section 4.1. Construction of Minimum Improvements. The
Company agrees that it will construct the Minimum Improve-
ments on the Development Property in conformance with the
approved Construction Plans. The Company agrees that the
scope and scale of the Minimum Improvements to be con-
structed shall not be significantly less than the scope and
scale of the Minimum Improvements as detailed and outlined
in the Construction Plans.
Section 4.2. Construction Plans.
(a) The Company shall provide the Authority with
Construction Plans, which shall be subject to approval
by the Authority as provided in this Section 4.2. The
Construction Plans shall provide for the construction of
the Minimum Improvements, including specifications for
all Qualifying Improvements to be constructed or per-
formed by the Company on the Development Property, and
shall be in conformity with the Development Program,
this Agreement, the Environmental Assessment Worksheet,
if any, prepared with respect to the Project, and all
applicable state and local laws and regulations. The
Authority shall approve the Construction Plans in writ-
ing if: (a) the Construction Plans conform to the terms
and conditions of this Agreement; (b) the Construction
Plans conform to the terms and conditions of the Rede-
velopment Plan; (c) the Construction Plans conform to
all applicable federal, State and local laws, ordi-
nances, rules and regulations; (d) the Construction
Plans are adequate for purposes of this Agreement to
provide for the construction of the Minimum Improve-
ments; and (e) no Event of Default has occurred; pro-
vided, however, that any such approval of the Construc-
tion Plans pursuant to this Section 4.2 shall constitute
approval for the purposes of this Agreement only and
shall not be deemed to constitute approval or waiver by
the City with respect to any building, zoning or other
ordinances or regulation of the City, and shall not be
deemed to be sufficient plans to serve as the basis for
the issuance of a building permit if the Construction
Plans are not as detailed or complete as the plans oth-
erwise required for the issuance of a building permit.
The Site Plan submitted for the Development Property by
the Company to the Building Inspector shall be adequate
to serve as the Construction Plans, if such Site Plan
fulfills the requirements of this Section 4.2 and is
approved by the Building Inspector. Such Construction
Plans must be rejected in writing by the Authority
4 - 1
within fifteen (15) days of submission or shall be
deemed to have been approved by the Authority. If the
Authority rejects the Construction Plans in whole or in
part, the Company shall submit new or corrected Con-
struction Plans within thirty (30) days after receipt by
the Company of written notification of the rejection, _
accompanied by a written statement of the Authority
specifying the respects in which the Construction Plans
submitted by the Company fail to conform to the require-
ments of this Section 4.2. The provisions of this Sec-
tion 4.2 relating to approval, rejection and resubmis-
sion of corrected Construction Plans shall continue to
apply until the Construction Plans have been approved by
the Authority; provided, however, that in any event the
Company shall submit Construction Plans which are ap-
proved prior to reconveyance of the Development Property
to the Company by the Authority or commencement of con-
struction of the Minimum Improvements. Approval of the
Construction Plans by the Authority shall not relieve
the Company of any obligation to comply with the terms
and provisions of this Agreement, or the provisions of
applicable federal, state and local laws, ordinances and
regulations, nor shall approval of the Construction
Plans by the Authority be deemed to constitute a waiver
of any Event of Default.
(b) If the Company desires to make any material
change in the Construction Plans after their approval by
the Authority, the Company shall submit the proposed
change to the Authority for its approval. If the Con-
struction Plans, as modified by the proposed change,
conform to the approval criteria listed in Section
4.2(a) with respect to the original Construction Plans
and do not constitute a material modification to the
scope, size or use of the Project or to the site plan
therefor, the Authority shall approve the proposed
change. Such change in the Construction Plans shall be
deemed approved by the Authority unless rejected in
writing within ten (10) days by the Authority with a
statement of the -Authority's reasons for such rejection.
Se tion 4.3. Commencement and Completion of Construc-
tion.�he Comp ny has commenced construction of the Minimum
ImprovementsL /Subject to Unavoidable Delays, the Company
shall have substantially completed the construction of the
Minimum Improvements by December 31, 1985. Time lost as a
result of Unavoidable Delays shall be added to extend this
date beyond December 31, 1985, a -number of days equal to the
number of days lost as a result of Unavoidable Delays. All
work with respect to the Minimum Improvements to be con-
structed or provided by the Company on the Development Prop-
erty shall be in conformity with the Construction Plans as
submitted by the Company and approved by the Authority.
4 - 2
The Company agrees for itself, and every successor in
interest to the Development Property, or any part thereof,
and the Development Property Deed shall contain covenants on
the part of the Company and such successors and assigns,
that the Company, and such successors and assigns, shall
promptly begin and diligently prosecute to completion con-
struction of the Minimum Improvements thereon, and that such
construction shall in any event be commenced and completed
within the period specified in this Section 4.3. It is
intended and agreed, and the Development Property Deed shall
so expressly provide, that such agreements and covenants
shall be covenants running with the land and that they
shall, in any event, and without regard to technical classi-
fication or designation, legal or otherwise, and except only
as otherwise specifically provided in this Agreement or
otherwise by written agreement executed by the City and the
Authority, be, to the fullest extent permitted at law and in
equity, binding for the benefit of the Authority and en-
forceable by the Authority against the Company and its suc-
cessors and assigns. Subsequent to reconveyance of the
Development Property, or any part thereof, to the Company,
and until construction of the Minimum Improvements has been
completed, the Company shall make reports to the Authority,
in such detail and at such times as may reasonably be re-
quested by the Authority, as to the actual progress of the
Company with respect to construction of the Minimum Improve-
ments. The Company also agrees that it shall allow desig-
nated representatives of the Authority to enter upon the
Development Property during the construction of the Minimum
Improvements to inspect such construction.
Section 4.4. Certificate of Completion.
(a) Promptly after completion of the Minimum Im-
provements in accordance with the provisions of this
Agreement, the Authority will furnish the Company with a
Certificate of Completion, in substantially the form set
forth in Exhibit B attached hereto. Such Certificate of
Completion shall be (and it shall be so provided in the
Development Property Deed and in the Certificate of
Completion itself) a conclusive determination of satis-
faction and termination of the agreements and covenants
in this Agreement and in the Development Property Deed
with respect to the obligations of the Company, and its
successors and assigns, to construct the Minimum Im-
provements. _
(b) The Certificate of Completion shall be re-
corded in the proper office for the recordation of deeds
and other instruments pertaining to the Development
Property. If the Authority shall refuse or fail to
4 - 3
provide a Certificate of Completion in accordance with
the provisions of this Section 4.4, the Authority.shall,
within ten (10) days after written request by the Com-
pany, provide the Company with a written statement indi-
cating in adequate detail in what respects the Company
has failed to complete the Minimum Improvements in ac-
cordance with the provisions of this Agreement, or is
otherwise in default under the terms of this Agreement,
and what measures or acts it will be necessary, in the
opinion of the Authority, for the Company to take or
perform in order to obtain such Certificate of Comple-
tion.
ARTICLE V
Insurance and Condemnation
Section 5.1. Insurance.
(a) The Company will provide and maintain or cause
to be maintained at all times during the process of con-
structing the Minimum Improvements and, from time to
time at the request of the Authority, furnish the Au-
thority with.proof of payment of premiums on:
(i) Builder's risk insurance, written on the
so-called "Builder's Risk -- Completed Value
Basis," in an amount equal to one hundred percent
(100%) of the insurable value of the Minimum Im-
provements at the date of completion, and with
coverage available in nonreporting form on the so-
called "all risk" form of policy; the interest of
the Authority shall be protected in accordance with
a clause in form and content satisfactory to the
Authority;
(ii) Comprehensive general liability insurance
(including operations, contingent liability, opera-
tions of subcontractors, completed operations and
contractual liability insurance) together with an
Owner's Contractor's policy with limits against
bodily injury and property damage of not less than
$1,000,000 for each occurrence (to accomplish the
above -required limits, an umbrella excess liability
policy may be used); and
(iii) Worker's compensation insurance, with
statutory coverage.
(b) Upon completion of construction of the Minimum
Improvements and prior to the Termination Date, the
Company shall maintain, or cause to be maintained, at
its cost- and expense, and from time to time at the re-
quest of the Authority shall furnish proof of the pay-
ment of premiums on, insurance as follows:
(i) Insurance against loss and/or damage to
the Minimum Improvements under a policy or policies
covering such risks as are ordinarily insured
against by similar businesses, including (without
limiting the generality of the foregoing) fire,
extended coverage, vandalism and malicious mis-
chief, explosion, water damage, demolition cost,
debris removal, and collapse in an amount not less
than the full insurable replacement value of the
5 - 1
Minimum Improvements, but any such policy may have
a deductible amount of not more than $50,00.0. No
policy of insurance shall be so written that the
proceeds thereof will produce less than the minimum
coverage required by the preceding sentence, by
reason of co-insurance provisions or otherwise,
without the prior consent thereto in writing by the
Authority. The term "full insurable replacement
value" shall mean the actual replacement cost of
the Minimum Improvements (excluding foundation and
excavation costs and costs of underground flues,
pipes, drains and other uninsurable items) and
equipment, and shall be determined from time to
time at the request of the Authority, but not more
frequently than once every three years, by an in-
surance consultant or insurer selected and paid for
by the Company and approved by the Authority. All
policies evidencing insurance required by this
subparagraph (i) with respect to the Minimum Im-
provements shall be carried in the names of the
Company, the Authority and the Holder of the First
Mortgage, as their respective interests may appear.
(ii) Comprehensive general public liability
insurance, including personal injury liability for
injuries to persons and/or property, including any
injuries resulting from the operation of automo-
biles or other motorized vehicles on or about the
Development Property, in the minimum amount for
each occurrence and for each year of $1,000,000,
and shall be endorsed to show the Authority as an
additional insured.
(iii) Such other insurance, including worker's
compensation insurance respecting all employees of
the Company, in such amount as is customarily car-
ried by like organizations engaged in like activ-
ities of comparable size and liability exposure;
provided that the Company may be self-insured with
respect to all or any part of its liability for
worker's compensation.
(c) All insurance required in this Article V shall
be taken out and maintained in responsible insurance
companies selected by the Company which are authorized
under the laws of the State to assume the risks covered
thereby. The Company will deposit annually with the
Authority copies of policies evidencing all such insur-
ance, or a certificate or certificates or binders of the
respective insurers stating that such insurance is in
force and effect. Unless otherwise provided in this
Article V, each policy shall contain a provision that
5 - 2
the insurer shall not cancel or modify it without giving
written notice to the Company and the Authority at least
thirty (30) days before the cancellation or modification
becomes effective. Not less than fifteen (15) days
prior to the expiration of any policy, the Company shall
furnish the Authority evidence satisfactory to the Au-
thority that the policy has been renewed or replaced by
another policy conforming to the provisions of this
Article V, or that there is no necessity therefor under
the terms hereof. In lieu of separate policies, the
Company may maintain a single policy, or blanket or
umbrella policies, or a combination thereof, which pro-
vide the total coverage required herein, in which event
the Company shall deposit with the Authority a certifi-
cate or certificates of the respective insurers as to
the amount of coverage in force upon the Minimum Im-
provements.
(d) The Company agrees to notify the Authority
immediately in the case of damage exceeding $100,000 in
amount to, or destruction of, the Minimum Improvements
or any portion thereof resulting from fire or other
casualty. In the event that any such damage does not
exceed $500,000, Net Proceeds of any such insurance
shall be paid directly to the Company, and the Company
will forthwith repair, reconstruct and restore the Min-
imum Improvements to substantially the same or an im-
proved condition or value as they existed prior to the
event causing such damage and, to the extent necessary
to accomplish such repair, reconstruction and restora-
tion, the Company will apply the Net Proceeds of any
insurance relating to such damage received by the Com-
pany to the payment or reimbursement of the costs
thereof.
Net Proceeds of any insurance relating to damage or
destruction to the Minimum Improvements or any portion
thereof as a result of fire or other casualty in an
amount estimated to equal or exceed $500,000 shall be
payable to a trustee jointly agreed upon by the Company,
the Authority and the Holder of the First Mortgage and
shall be subject to such disbursement provisions as
shall be jointly agreed by the Authority, the Company
and the Holder of the First Mortgage. In the event the
Minimum Improvements or any portion thereof is destroyed
by fire or other casualty and the damage or destruction
is estimated to equal or exceed $100,000, then datseafter
Com-
pany shall within one hundred eighty (180) y
such damage or destruction, commence to repair, recon-
struct and restore the damaged Minimum Improvements to
substantially the same or improved condition or utility
value as they existed prior to the event causing such
5 - 3
damage or destruction and, to the extent necessary to
accomplish such repair, reconstruction and restoration,
the Company will apply the Net Proceeds of any insurance
relating to such damage or destruction received by the
Company from the Authority to the payment or reimburse-
ment of the costs thereof.
(e) The Company shall complete the repair, recon-
struction and restoration of the Minimum Improvements,
whether or not the Net Proceeds of insurance received by
the Company for such purposes are sufficient to pay for
the same. Any Net Proceeds remaining after completion
of such repairs, construction and restoration shall be
disbursed by the Authority to the Company.
(f) Any other provision of this Section 5.1 not-
withstanding, if temporary or permanent construction
financing for the Minimum Improvements is funded with
the proceeds of a public sale of Industrial Revenue
Bonds issued by the City or the Authority, the Authority
hereby agrees that, until such time as the Bonds and all
interest and premium, if any, thereon shall be paid in
full, the applicable provisions of the Loan Agreement
(or any similar document) executed with respect to such
Bonds shall control the payment, application and dis-
bursement of any Net Proceeds of insurance with respect
to the Project or such intercreditor agreement or simi-
lar instrument as shall be executed by the Authority.
With respect to any other construction financing for the
Minimum Improvements, application of proceeds of insur-
ance shall be subject to the provisions of such inter -
creditor agreement or similar agreement as shall be
approved by the Authority. This Subsection 5.1(f) not-
withstanding, this Section 5.1 otherwise shall remain in
full force and effect with respect, to the Developers'
obligations to maintain insurance, notify the Authority
of any casualty thereto, and reconstruct the Minimum
Improvements upon casualty, unless provision is made to
the satisfaction of the Authority for the payment or
discharge of the Tax Increment Bonds and reimbursement
of all other public redevelopment costs incurred by the
City and the Authority in connection with the Project.
Section 5.2. Condemnation.
(a) In the event that title to and possession of
the Minimum Improvements or any material part thereof
shall be taken in condemnation or by the exercise of the
power of eminent domain by any governmental body or
other person (except the Authority or the City) so long
as either the Assessment Agreement shall remain in
effect or there shall be any unpaid principal balance on
5 - 4
the Promissory Note, the Company shall, with reasonable
promptness after such taking, notify the Authority as to
the nature and extent of`7 such taking. Upon receipt of
any Condemnation Award the Company shall elect to
either: (a) use the entire Condemnation Award to recon-
struct the Minimum Improvements (or, in the event only a
part of Minimum Improvements have been taken, then to
reconstruct such part) upon the Development Property or
elsewhere within the Project Area; or (b) pay to the
Authority out of the Condemnation Award, to the extent
any such Condemnation Award is sufficient for such pur-
pose: (i) if prior to the Termination Date, the present
value of the sum of the real property taxes which would
have been assessed upon the Improved Parcel between the
date of such condemnation and the Termination Date, such
calculation to be based upon (A) the Assessor's Minimum
Market Value specified in the Assessment Agreement pur-
suant to Section 6.1, and (B) the then -effective mill
rate upon the date of such condemnation, such sum to be
discounted to present value based upon (A) the number of
years between the date of such condemnation and the
Termination Date, and (B) the interest rate on the Prom-
issory Note; and (ii) the outstanding Principal Balance
of the Promissory Note, if any.
(b) Any other provisions of the foregoing para-
graph notwithstanding, if temporary or permanent con-
struction financing for the Project is funded with the
proceeds of a public sale of industrial Revenue Bonds as
discussed in Section 5.1(f), until such time as the
principal, premium, if any, and interest on such Bonds
shall have been paid in full, the proceeds of any Con-
demnation Award received with respect to the Minimum
Improvements shall be first paid, applied and disbursed
as provided in the Loan Agreement (or any similar docu-
ment) executed with respect to such Bonds, with any
excess received by the Company to be applied as provided
in the foregoing paragraph6 or as provided in any inter -
creditor agreement or similar agreement as shall be
approved by the Authority-. With respect to any other
construction financing for the Minimum Improvements,
application of Net Proceeds of any condemnation award
shall be subject to the provisions of such intercreditor
agreement or similar agreement as shall be approved by
the Authority.
Section 5.3. Modification for Benefit of Mortgagees.
In order to facilitate the obtaining of financing for the
construction of the Minimum Improvements, the Authority
agrees that it shall agree to any reasonable modification of
this Article V with respect to the disposition of the Net
Proceeds of any insurance or any Condemnation Award to
5 - 5
accommodate the interests of the Holder of the First Mort-
gage; provided, however, that the Authority determines, in
its reasonable judgment, that any such modification(s) will
adequately protect the legitimate interests and security of
the Authority with respect to the Project and the Redevelop-
ment Project.
5 - 6
ARTICLE VI
Assessment Agreement
Section 6.1. Execution of Assessment Agreement.P. ur=
suant to therovisions of the First Amended Development
Contract an the Agreement to Amend the Company an nt e
Authority have executed an Assessment Agreement, dated as of
October 2 , 1984 pursuant to t1le provisions of Minnesota
Statutes 273.76, Subdivision 8. Pursuant to the Assessment
Agreement, the Company has agree to a market value for the
Improved Parcel(exclusive of the Option Property) for the
calculation of real property 'taxes (and taxes in -lieu
thereof pursuant to Minnesota Statutes, C a ter 2731 as of
—
January 2, 1986, of not less than orty three Million Two
'Hundred Forty-five Thousand Dollars ($43,245,000)(such mar-
ket value, the Assessor's Minimum Mar et Value) allocated
among properties constituting the Project Site as— providedin the Assessment Agreement. Nothing in the Assessment
Agreement shall emit the Tiscretion of the assessor to
assign a market value to the property in excess of such
Assessor's Minimum Market Value nor prohibit the Company
from seeking through the exercise of legal or administrative
remedies a reduction in such market value for property tax
purposes, provided however, that the Company shall not seek
a reduction of such market value below the Assessor's Mini-
mum Market Value in any year so long as the Assessment
Agreement shall remain in effect. The Assessment Agreement
shall remain in effect until December 31, 1994 (the "Termi-
nation Date"). A Pursuant to Minnesota Statutes, Section
273.76, Subdivision 8, upon reconveyance of the Development
Property to the Company pursuant to Section 3.4 hereof, the
Assessment Agreement shall be filed for record in the office
of the county recorder or registrar of titles of Scott
County, and such filing shall constitute notice to any sub-
sequent encumbrancer or purchaser of the Development Prop-
erty, whether voluntary or involuntary, and such Assessment
Agreement shall be binding and enforceable in its entirety
against any such subsequent purchaser or encumbrancer, in-
cluding the Holder of the First Mortgage.
Section 6.2. Real Property Taxes.
(a) The Company shall pay all real property taxes
payable with respect to the Development Property and
pursuant to the provisions of the Assessment Agreement
and any other statutory or contractual duty which shall
accrue subsequent to the date of its acquisition of
title to the Development Property and until the Com-
pany's obligations have been assumed by any other person
with the written consent of the Authority and pursuant
to the provisions of this Agreement.
6 - 1
(b) The Company agrees that prior to the Termina-
tion Date:
(i) It will not seek administrative review or
judicial review of the applicability of any tax
statute relating to the taxation of real property
contained on the Development Property determined by
any Tax Official to be applicable to the project
or the Company or raise the inapplicability. of any
such tax statute as a defense in any proceedings,
including delinquent tax proceedings; provided,
however, "tax statute" does not include any local
ordinance or resolution levying a tax;
(ii) It will not seek administrative review or
judicial review of the constitutionality of any tax
statute relating to the taxation of real property
contained on the Development Prooerty determined by
any Tax Official to be applicable to the project or
the Company or raise the unconstitutionality of any
such tax statute as a defense in any proceedings,
including delinquent tax proceedings; provided,
however, "tax statute" does not include any local
ordinance or resolution levying a tax;
(iii) It will not seek any tax deferral or
abatement, either presently or prospectively autho-
rized under Minnesota Statutes, Section 273.86, or
any other State or federal law, of the taxation of
real property contained in the Development Property
between the date of execution of this Agreement and
the Termination Date.
Section 6.3. Certain Guarantees; Letter of Credit.
(a) Letter of Credit. Prior to issuance of the
Tax Increment Bonds or acquisition of the evelopment
Property, the Company shall provide to the Authorit
or, at the option of the Authority, the Trustee, an
irrevocable Letter of Credit securing payment oF uto
twenty-five percent (25%) of principal of and
twenty-five percent (25%) of interest on the Tax Incre-
ment Bonds. The Letter of Credit shall be in an amount
equal to either of the following amounts, at the option
of the City: (i) the highest total of principal and
interest which shall be payable with respect to the Tax
Increment Bonds in any single calendar year, or (ii)
eighty percent (80%) of the estimated annual ad valorem
real estate taxes payable with respect to the Project,
such calculation to be based on the Assessor's Minimum
Market Value and the 1985 mill rate for the City if
available, or, if the 1985 mill rate is not available,
6 - 2
the 1984 mill rate; provided, however, that in the event
that the amount calculated pursuant to clause (i) is
more than one hundred twenty percent (120%) of the
amount calculated pursuant to clause (ii), the City
shall require a Letter of Credit in the amount of clause
(ii). The Compa y shall maintain the Letter of Credit
at least through March 5, 1995; provided, however, that
the Company may provide annual or other Letters of
Credit having a lesser term in satisfaction of this
Section 6.3(a) if each such Letter of Credit provides by
its terms that it may be drawn upon in full if a re-
placement Letter of Credit meeting the requirements of
this Section 6.3(a) has not been provided at least
thirty (30) days prior to the expiration date of such
Letter of Credit.
The Letter of Credit sha11� provide that it may be
drawn on up to its full amount by the Authority o
ruwhenever r the
Tstee enever amounts in t e on un estaoli-snecl
for the Tax Increment Bonds shall be insufficient to pay
principal of and interest on the Tax Increment Bonds
when due, whether at stated maturity, upon acceleration,
or otherwise, and that the Trustee may draw any and all
additional moneys available under the Letter of Credit
if the Letter of Credit is not reinstated to its full
amount prior to such draw after any draw to pay debt
service on the Tax Increment Bonds; provided, however,
that the Company shall never be required to provide or
reinstate the Letter of Credit in a cumulative amount in
excess of the cumulative origin 1 face amount of the
-Guarantees* The City agrees that it s a raw on the
Letter of Credit prior to submitting any draw under any
Guarantees provided pursuant to Section 6.3(b). The
Letter of Credit shall be issued by a bank or financial
institution reasonably acceptable to the City. The City
must receive simultaneously with the Letter of Credit an
opinion of counsel to the issuing bank or financial in-
stitution addressed to the City to the effect that: (i)
counsel is not aware of any facts or circumstances that
would lead counsel to believe that the Letter of Credit
is not a legally binding and valid obligation of the
issuing bank or financial institution except to the ex-
tent the enforcement of such obligation may be limited
by laws relating to bankruptcy or reorganization of the
issuing bank or financial institution or by other simi-
lar laws of general application affecting the rights of
creditors or the issuing bank or financial institution
or by equitable remedies of the City or the Holders of
the Bonds against the issuing bank or financial insti-
tution, (ii) the bank or financial institution issuing
the Letter of Credit is organized and existing under the
laws of the United States of America or applicable State
law and (iii) the Letter of Credit qualifies as an obli-
gation which the issuing bank_ or financial institution
is permitted to issue under the laws of the United
States of America or applicable State law.
If the Tax Increment Bonds shall be refunded by the
City, the Company shall be required to provide to the
City Letter of Credit with respect to the refunding
bonds conforming in all respects with the provisions of
this Section 6.3(a).
(b) Guaran es. Additionally, prior to purchase
of the Development Property by the Authority, the Com-
pany shall be required to provide to theAuthority or,
at the option of the Authority, the Trustee personal
and corporate guarantees (the "Guarantees"), as the case
may be, securing payment of principal and interest on
the Tax Increment Bonds from the following individuals
and corporations: Santa Anita Operating Company, a
Delaware corporation; North American Life and Casualty
Company, a Minnesota corporation; Scottland, Inc., a
Minnesota corporation; John Brooks Hauser, an individual
residing in the State of Minnesota; and Walter Brooks
Fields, Jr., an individual residing in the State of
Minnesota (cumulatively, the "Guarantors"). The Guar-
antees may be several and not joint but shall cumula-
tively be in an aggregate amount equal to the sum of (i)
twenty-five percent (25%) of the principal amount of the
,Tax Increment Bonds and (ii) twenty-five percent (25%)
of the interest payable on the Tax Increment Bonds to
and including the stated maturity date thereof. The
Guarantees shall provide that they may be drawn upon,
separately and not prorata at the sole election ot the
Trustee or the Authority, up to the full amount guaran-
teed by any Guarantor, any and each time amounts in the
bond fund established for the Tax Increment Bonds shall
be insufficient to pay principal of and interest on the
Tax Increment Bonds when due, whether at stated matu-
rity, upon acceleration or otherwise; provided, however,
that if the City has submitted a draw and received pay-
ment under the Letter of Credit provided pursuant to
Section 6.3(a), then each Guarantor shall be entitled to
a credit against the amount guaranteed by such Guarantor
equal to the product of (i) the ratio which the amount
guaranteed by such Guarantor bears to the cumulative
amount guaranteed under all the Guarantees, times (ii)
the amount guaranteed by such Guarantor; and provided
further, that if the City shall in no event seek to draw
an aggregate amount under the Guarantees in excess of
the sum of the remaining principal and interest payable
on the Tax Increment Bonds to the stated maturity
thereof, less any amounts collected under the Letter of
Credit and available therefor.
6 - 4
(c) The City shall apply all funds collected under
the Letter of Credit or'the Guarantees for payment of
principal and interest on the Tax Increment Bonds as
they shall become due, with any amounts collected in
excess of the funds so applied- shall be repaid to the
Company or the Guarantors, as applicable.
(d) To the extent that any moneys are drawn under
the Letter of Credit or collected under the Guarantees
or transferred from the Reserve Fund (as defined in the
Indenture) to pay principal of or interest on the Bonds
when due solely as a result of (i) a failure of the
Authority to pay any tax increment received by the
Authority and pledged to the Bonds to the Trustee at the
times required by the Indenture, or (ii) acceleration of
the Bonds upon the occurrence of an Event of Default (as
defined in the Indenture) under the Indenture other than
a default in the payment of any principal of, premium or
interest on the Bonds when due and payable, whether at
stated maturity, upon redemption prior to maturity or
otherwise, the Authority agrees to reimburse the Company
or some or all Guarantors, as appropriate, the moneys so
drawn.
(e) Solely with respect to paragraphs 6.3(c) and
6.3(d) above, the City and Authority agree that the
Guarantors are and shall be third party beneficiaries of
this Agreement.
Section 6.4. Payment and Performance Bond. The Company
shall furnish, or cause to be furnished, a payment and per-
formance bond, in form and substance satisfactory to the
Authority, to assure completion of the Project by the con-
tractor; the Authority shall accept, in lieu of such single
bond, payment and performance bonds with respect to all
subcontractors equal in cumulative amount to the cost of all
work to be performed with respect to the Project, exclusive
of the general contractor's fee.
6 - 5
ARTICLE VII
Undertakings of the City and Authority; Tax Increment Bonds
Section 7.1. Issuance of Tax Increment Bonds. The City
and Authority agree that upon satisfaction of the conditions
precedent specified in Section 3.3(b) and Section 7.3 hereof
o the Company, the City and the Authority shall take all
steps necessary to issue and the City shall issue its Tax
Increment Bonds in an amount sufficient to finance the
City's and Authority's obligations to the Company hereunder,
including purchase of th Development Property pursuant to
the terms of Article III Such steps shall include, but
shall not be limited to, final approval of the Tax Increment
District and submission to the Auditor of the County for
certification of the original assessed value of the Tax
Increment District. Then Authority shall issue the Tax In-
crement Bonds at such time as shall be necessary and desir-
able to facilitate the Project and effect the purchase of
the Development Property by the Authority, as mutually
agreed by the City, the Authority and the Company.n
Section 7.2. Provision of Offsite Improvements. As
consideration for the execution of this Agreement and con-
struction of the Minimum Improvements by the Company, the
City and the Authority agree to undertake and finance the
following public development costs of improvements located
within the Redevelopment Project but off the Development
Property (the Offsite Improvements"), provided that the City
and Authority shall have no obigation to spend in excess of
$2,900,000 to construct the Offsite Improvements, and fur-
ther provided that the Company has caused all related par-
ties to it, including any shareholders in the Company or
general partners in any affiliated partnerships, to (i)
dedicate such land as is owned by such related parties as is
necessary for the construction of the Offsite Improvements
to the City without cost and (ii) execute, to the extent
such related persons are the owners of benefitting proper-
ties, special assessment agreements providing for (A) reim-
bursement of 73% of the construction cost of the Offsite
Improvements listed in clause (d) below, and (B) reimburse-
ment of 38% of the construction cost of the Offsite Improve-
ments listed in clause (g) below, such special assessment
agreements to.be subject to the terms provided below:
Improvement Type
(a) Signalization and intersection upgrading at Valley Park
Drive and TH 101
(b) Signalization and intersection upgrading at TH 101 and
CR 83
7 - 1
(c) Signalization and intersection upgrading at north -south
collector street and TH 101-
(d) Construct previously planned four lane, 9 -ton, urban
design (excluding storm sewer) Valley Industrial -Park
east -west roadway between Valley Park Drive and CR 83
(e) Construct rural design north -south collector street from
TH 101 south to 4th Avenue
(f) Widen CR 83 to a four lane, urban design roadway from TH
101 to north entrance to racetrack
(g) Widen and overlay Valley Park Drive to a four lane, S-
ton, urban/rural roadway from TH 101 to proposed east -
west roadway intersection (including 1,000 -foot urban
extension)
(h) Add turn lanes to Fourth Avenue from CR 83 to the pro-
posed north -south collector street
(i) Intersection improvements and signal revisions at TH 101
and CR 18
(j) Engineering, Legal and Contingency Costs
(k) Additional right-of-way cost for property not owned by
the Company or any related parties thereto
All costs of the Offsite Improvements in excess of
$2,900,000 shall be the obligation of the Company unless
otherwise agreed. Any special assessment agreements exe-
cuted pursuant to this Section 7.2 shall be subject to the
following terms: (i) payment of any assessment levied upon
unimproved property shall be deferred, subject to the appli-
cable provisions of law, until the construction of improve-
ments on the properties assessed, and (ii) no interest shall
accrue with respect to any deferred payments during the
deferral period, and shall thereafter accrue and be payable
in the manner provided in the resolution authorizing such
assessments. The City and the Authority shall construct the
Offsite Improvements as necessary to coincide with construc-
tion of the Minimum Improvements by the Company; in this
regard, the Company shall keep the City and Authority noti-
fied as to construction progress on the Minimum Improve-
ments. The obligation of the City and the Authority to
construct and install the Offsite Improvements shall addi-
tionally be subject to the provisions of Section 7.3.
Section 7.3. Limitations on Financial Undertakings of
the City. The provisions of Sections 7.1 and 7.2 notwith
7 - 2
standing, neither the City nor the Authority shall have any
obligation to the Company under this Agreement to issue the
Tax Increment Bonds or to commence or continue construction
of the Offsite Improvements except upon the continuing exis-
tence of the following conditions:
(i) The Company has been awarded the Franchise and
the Franchise remains in good standing and no material
and meritorious litigation has been commenced and is
continuing with respect to the Franchise or the Company
which, if resolved unfavorably to the Company, would
result either in revocation of the Franchise or in the
inability of the Company to proceed with the Project;
(ii) The City and the Authority are not entitled
under Section 10.02 to exercise any of the remedies set
forth therein as a result of an Event of Default; and
(iii) There has not been, nor does there occur, a
substantial change for the worse in the financial re-
sources and ability of the Company, or a substantial
decrease in the financing commitments secured by the
Company for construction of the Minimum Improvements,
which change(s) makes it substantially more likely, in
the reasonable judgment of the City and the Authority,
that the Company will be unable to fulfill its covenants
and obligations under this Agreement.
Section 7.4. Use of Tax Increments. The Authority
shall be free to use any tax increments received from the
Tax Increment District for any purpose, consistent with any
covenants orledges made with respect to the Tax Increment
Bonds, for whic—T such increments may lawfully be used pur-
suant to the provisions of Minnesota Statutes, Chapter 462
and Section 273.75, subd. 4, and the Authority shall have no
obligations to the Company with respect to the use of such
increment.
7 - 3
ARTICLE VIII
Mortgage Financing
Section 8.1. Limitation Upon Encumbrance of Property.
Prior to the completion of the Minimum Improvements, as
certified by the Authority, neither the Company nor any
successor in interest to the Development Property or any
part thereof shall engage in any financing or any other
transaction creating any mortgage or other encumbrance or
lien upon the Development Property, other than Permitted
Encumbrances, whether by express agreement or operation of
law, or suffer any encumbrance or lien to be made on or
attach to the Development Property, other than Permitted
EncumbrancesAexcept:
(a) for the purposes of obtaining funds only to
the extent necessary for making the Minimum Improvements
(including, but not limited to, labor and materials,
equipment, professional fees, real estate taxes, con-
struction interest, organizational and other indirect
costs of development, costs of constructing the Minimum _
Improvements, an allowance for contingencies, land ac-
quisition cost of the Development Property, costs of
issuance of any bond issue to fund construction or ac-
quisition of the Project, amounts required to fund any
bond reserves relating to construction or acquisition of
the Project, and amounts required to fund any required
escrow accounts); and
(b) only upon the prior written approval of the
Authority in accordance with Sections 8.1 and 8.2.
The Authority shall not approve any Mortgage which does not
contain terms that conform to the terms of Section 8.5,
except as provided in Section 8.6 of this Agreement.
Section 8.2. Approval of Mortgage. The Authority shall
approve a Mortgage if:
(a) the Authority first receives a copy of all
mortgage documents;
(b) the mortgage loan, together with other funds
available to the Company, will, in the reasonable judg-
ment of the Authority, be sufficient to construct the
Minimum Improvements;
(c) the Authority and the City are not entitled
under Section 10.02 to exercise any of the remedies set
forth therein as a result of an Event of Default; and
8 - 1
(d) the Authority determines that the terms of the
Mortgage conform to the terms of Section 8.5.
However, the approval of a mortgage by the Authority shall
not be unreasonably withheld. Any Mort a e is ub-
ordinated to the rights of -the Authority Aunder the
Development Agreement may be granted in all or any part of
the Development Property without the approval of the
Authority.
Section 8.3. Notice of Default; Copy to Mortgagee.
Whenever the Authority shall deliver any notice or demand to
the Company with respect to any breach or default by the
Company in its obligations or covenants under the Agreement,
the Authority shall at the same time forward a copy of such
notice or demand to each Holder of any Mortgage authorized
by the Agreement at the last address of such Holder shown in
the records of the Authority.
Section 8.4. Mortgagee's Option to Cure Defaults.
After any breach or default referred to in Section 8.3, each
such Holder shall (insofar as the rights of the Authority
are concerned) have the right, at its option, to cure or
remedy such breach or default (or such breach or default to
the extent that it relates to the part of the Development
Property covered by its mortgage) and to add the cost
thereof to the Mortgage debt and the lien of its Mortgage;
provided, however, that if the breach or default is with
respect to construction of the Minimum Improvements, nothing
contained in this Section or any other Section of this
Agreement shall be deemed to require such Holder, either
before or after foreclosure or action in lieu thereof, to
undertake or continue the construction or completion of the
Minimum Improvements, provided that any such Holder shall
not devote the Development Property to a use inconsistent
with the Development Plan or this Agreement without the
agreement of the Authority.
Section 8.5. Authority's Option to Cure Default on
Mortgage. Any Mortgage, unless such requirement is waived_
by the Authority, executed by the Company with respect to
the Development Property or any improvements thereon shall
provide that, in the event that the Company is in default
under any Mortgage authorized pursuant to this Article VIII,
the Holder shall notify the Authority in writing of:
(a) the fact of the default;
(b) the elements of the default; and
(c) the actions required to cure the default.
8 - 2
If the default is an "Event of Default" under such Mortgage,
which shall entitle such Holder to foreclose upon the.Devel-
opment Property, the Minimum Improvements or any portion
thereof, and any applicable grace periods have expired, the
Authority shall have, and each Mortgage executed by the
Company with respect to the Development P-roperty or any
improvements thereon shall provide that the Authority shall
have such an opportunity to cure the "Event of Default"
within such reasonable time period as the Holder shall deem
appropriate.
Section 8.6. Subordination and Modification for the
Benefit of Mortgagees.
(a) In addition to the subordination of the Au-
thority Mortgage as provided in Section 3.4(d), in order
to facilitate the obtaining of financing for the con-
struction of the Minimum Improvements by the Company,
the Authority agrees to subordinate its rights under the
Development Property Deed and this Agreement to the
Holder of the First Mortgage for the purposes described
in Section 8.1(a) of this Agreement, but only provided
that the First Mortgage provides that if the Holder of
the First Mortgage shall foreclose on the Development
Property, the improvements thereon, or any portion
thereof, or accept a deed to the Development Property in
lieu of foreclosure, it shall consent to the Assessor's
Minimum Market Value set forth in the Assessment Agree-
ment.
(b) In order to facilitate the obtaining of fin-
ancing for the construction of the Minimum Improvements,
the Authority agrees that it shall agree to any reason-
able modification of this Article VIII or waiver of its
rights hereunder to accommodate the interests of the
Holder of the First Mortgage, provided, however, that
the Authority determines, in its reasonable judgment,
that any such modification(s) will adequately protect
the legitimate interests and security of the Authority
with respect to the Project and the Redevelopment
Plan. The Authority also agrees to consider such modi-
fication(s) of this Article VIII with respect to other
Holders, and to agree to such modifications if the Au-
thority deems such modification(s) necessary and rea-
sonable.
ARTICLE IX
Prohibitions Against Assignment and Transfer;
Indemnification
Section 9.1. Status of Company; Transfer of Substan-
tially All Assets. As security for the obligations of the
Company under this Agreemen the Company represents and
agrees that prior to the Ter enation Date, the Company will
maintain its existence as a Minnesota corporation and shall
not consolidate with or merge into another corporation and
shall not dissolve or otherwise dispose of all or substan-
tially all of its assets; provided that the Company may
consolidate with or merge into another corporation or sell
or otherwise transfer to a partnership or corporation orga-
nized under the laws of one of the United States, or an
individual, all or substantially all of its assets as an
entirety and thereafter dissolve and be discharged from
liability hereunder if (i) the transferee partnership, cor-
poration or individual assumes in writing all of the obliga-
tions of the Company under this Ag eement and the Assessment
Agreement; and (ii) the Authority6receives such evidence as
the Authority shall reasonably require, including an opinion
of counsel, that the existing Letter of Credit and Guaran-
tees provided pursuant to Section 6.3 will remain in effect
and will be enforceable against the bank or financial insti-
tution issuing the Letter of Credit and the Guarantors re-
s ectivel , or; alternatively the Company rovides or causes
to be provided a new Letter ot Credit and/or Guarantees
substantially in the form of the Letter of Credit and Guar-
antees in effect prior to such substitution which (i) comply
with all applicable requirements of the Indenture, this
Agreement and any related documents, and (ii) in the rea-
sonable judgment of the Authority provide at least equiva-
lent security for payment of principal and interest on the
Tax Increment Bonds when due.
Section 9.2. Prohibition Against Transfer of Property
and Assignment of Agreement. For the foregoing reasons the
Company represents and agrees that prior to the Termination
Date:
(a) Except only by way of security for, and only
for, the purpose of obtaining financing necessary to
enable the Company or any successor in interest to the
Development Property, or any part thereof, to perform
its obligations with respect to making the Minimum Im-
provements under this Agreement, and any other purpose
authorized by this Agreement, the Company has not made
or created and will not make or create or suffer to be
made or created any total or partial sale, assignment,
conveyance, or lease, or any trust or power, or transfer
9 - 1
in any other mode or form of or with respect to the
Agreement or the Development Property (other than Per-
mitted Encumbrances) or any part thereof or any interest
therein, or any contract or agreement to do any of the
same, without the prior written approval of the Author-
ity; provided, however, that the Company shall be free
to convey the portion of the Development Property leg-
ally described as follows (the "Option Property") with-
out the approval of the Authority and upon such terms as
the Company shall desirA
That part of the Northwest Quarter of Section
9, Township 115, Range 22, Scott County, Min-
nesota, excepting therefrom the South 400 feet
of the West 100 feet of the South Half of the
Northwest Quarter; and that part of the East
Half of the Northeast Quarter of Section 8,
Towns -hip 115, Range 22, Scott County, Minne-
sota, lying northerly of the centerline of
County Road No. 16; lying south and southwest-
erly of the following described line:
Commencing at the southeast corner
of said Northwest Quarter of Section
9; thence on an assumed bearing of
North 1 degree 10 minutes 22 seconds
West along the east line of said
Northwest Quarter a distance of
730.00 feet to the point of begin-
ning of the line to be described;
thence South 88 degrees 49 minutes
38 seconds West a distance of
2572.89 feet; thence along a tangen-
tial curve concave to the north,
having a radius of 1,321.00 feet, a
central angle of 64 degrees 32 min-
utes 00 seconds, an arc length of
1,487.87 feet; thence South 63 de-
grees 21 minutes 38 seconds West
(not tangent to said curve) a dis-
tance of 200 feet more or less to
the West line of said East Half of
the Northeast Quarter of said Sec-
tion 8 and there terminating.
Together with a nonexclusive easement for roadway pur-
poses over the following parcel:
That part of the Northwest Quarter of Section
9, Township 115, Range 22, Scott County, Min-
nesota and that part of the East Half of the
Northeast Quarter of Section 8, Township 115,
9 - 2
Range 22, Scott County, Minnesota described as
follows:
A strip of land 36.00 feet in width
the south line of which is described
as follows:
Commencing at the southeast corner
of said Northwest Quarter of Section
9; thence on an assumed bearing of
North 1 degree 10 minutes 22 seconds
West along the east line of said
Northwest Quarter a distance of
730.00 feet to the point of begin-
ning of the line to be described;
thence South 88 degrees 49 minutes
38 seconds West a distance of
2572.89 feet; thence along a tangen-
tial curve concave to the north,
having a radius of 1,321.00 feet, a
central angle of 6 degrees 04 min-
utes 20 seconds, an arc length of
140.00 feet and there terminating.
Subject to a nonexclusive easement for roadway purposes
in favor of the grantor over the following parcel:
That part of the East Half of the Northeast
Quarter of Section 8, Township 115, Range 22,
Scott County, Minnesota described as follows:
A strip of land 40.00 feet in width the
center line of which is described as
follows:
Commencing at the southeast corner of the
Northwest Quarter of Section 9, Township
115, Range 22, Scott County, Minnesota;
thence on an assumed bearing of North 1
degree 10 minutes 22 seconds West along
the east line of said Northwest Quarter a
distance of 730.00 feet; thence South 88
degrees 49 minutes 38 seconds West a
distance of 2572.89 feet; thence along a
tangential curve concave to the north,
having a radius of 1,321.00 feet; a cen-
tral angle of 5 degrees 10 minutes 04
seconds, an arc length of 119.15 feet to
the point of beginning of the centerline
to be described; thence south 1 degree 10
minutes 22 seconds East (not tangent to
said curve) a distance of 28.86 feet;
9 - 3
thence along a tangential curve concave
to the west, having a radius of 1,000.00
feet, a central angle of 30 degrees 21
minutes 29 seconds, an arc length of
529.85 feet; thence South 29 degrees 11
minutes 07 seconds West tangent to said
last described curve a distance of 185
feet more or less to the centerline of
County Road No. 16 and there terminating.
(b) The Authority shall be entitled to require,
except as otherwise provided in the Agreement, as condi-
tions to any such approval that:
(i) Any proposed transferee shall have the
qualifications and financial responsibility, in the
reasonable judgment of the Authority, necessary and
adequate to fulfill the obligations undertaken in
this Agreement by the Company;
(ii) Any proposed transferee, by instrument in
writing satisfactory to the Authority and in form
recordable among the land records, shall, for it-
self and its successors and assigns, and expressly
for the benefit of the Authority, have expressly
assumed all of the obligations of the Company under
this Agreement and agreed to be subject to all the
conditions and restrictions to which .the Company is
subject (unless the Company agrees to continue to
fulfill those obligations, in which case the pre-
ceding provisions of this Section 9.2(b)(ii) shall
not apply); provided, however, that the fact that
any transferee of, or any other successor in inter-
est whatsoever to, the Development Property, or any
part thereof, shall not, for whatever reason, have
assumed such obligations or so agreed, shall not
(unless and only to the extent otherwise specifi-
cally provided in this Agreement or agreed to in
writing by the Authority) deprive the Authority of
any rights or remedies or controls with respect to
the Development Property or the construction of the
Minimum- Improvements; it being the intent of the
Parties as expressed in this Agreement that (to the
fullest extent permitted at law and in equity and
excepting only in the manner and to the extent
specifically provided otherwise in this Agreement)
no transfer of, or change with respect to, owner-
ship in the Development Property or any part
thereof, or any interest therein, however consum-
mated or occurring, and whether voluntary or invol-
untary, shall operate, legally or practically, to
deprive or limit the Authority of or with respect
9 - 4
to any rights or remedies or controls provided in
or resulting from this Agreement with respect to
the Development Property and the construction of
the Minimum Improvements that the Authority would
have had, had there been no such transfer or
change. In the absence of specific written agree-
ment by the Authority to the contrary, no such
transfer or approval by the Authority thereof shall
be deemed to relieve the Company, or any other
party bound in any way by this Agreement or other-
wise with respect to the construction of the Mini-
mum Improvements, from any of its obligations with
respect thereto;/\
(iii) The requirements of Section 9.1, clause
(ii) with respect to maintenance of the Letter of
Credit and Guarantees shall be fulfilled; and
LIZ—) There shall be submitted to the Authority
for review and prior written approval all instru-
ments and other legal documents involved in effec-
ting the transfer of any interest in this Agreement
or the Development Property governed by this Arti-
cle IX.
Section 9.3. Release and Indemnification Covenants.
(a) The Company releases the Authority and the
City and the governing body members, officers, agents,
servants and employees thereof (hereinafter, for pur-
poses of this Section 9.3, the "indemnified parties")
from, covenants and agrees that 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 de-
fect in the Project; provided that nothing herein shall
require the Company to indemnify the indemnified parties
as to the consequences of any negligent or intentional
act of any of the indemnified parties, their officers, -
agents, servants or employees.
(b) Except for any willful misrepresentation or
any willful or wanton misconduct or any unlawful act of
the indemnified parties, the Company agrees to protect
and defend the indemnified parties, now or forever, and
further agrees to hold the indemnified parties harmless,
from any claim, demand, suit, action or other proceeding
whatsoever by any person or entity whatsoever arising or
purportedly arising (i) from any violation of any agree-
ment or condition of this Agreement (except with respect
to any suit, action, demand or other proceeding brought
by the Company against the City or the Authority to
enforce its rights under this Agreement) or (ii) the
acquisition, construction, installation, ownership, and
operation of the Project.
(c) The indemnified parties shall not be liable
for any damage or injury to the persons or property of
the Company or its officers, agents, servants or em-
ployees or any other person who may be about the Project
due to any act of negligence of any person, other than
any act of negligence on the part of any such indemni-
fied party or its officers, agents, servants or employ-
ees.
(d) All covenants, stipulations, promises, agree-
ments and obligations of the Authority and the City
contained herein shall be deemed to be the covenants,
stipulations, promises, agreements and obligations of
the Authority and the City, respectively, and not of any
governing body member, officer, agent, servant or em-
ployee of the Authority or the City in the individual
capacity thereof.
Section 9.4. Approvals. Any approval of a transfer of
interest in the Company, this Agreement, or the Development
Property required to be given by the Authority under this
Article IX may be denied only in the event that the Author-
ity reasonably determines that the ability of the Company to
perform its obligations under this Agreement, or the overall
financial security provided to the Authority under the terms
of this Agreement, or the likelihood of the Minimum Improve-
ments being successfully constructed and operated pursuant
to the terms of this Agreement, will be materially impaired
by the action for which approval is sought.
ARTICLE X
Events of Default
Section 10.1. 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:
(a) Failure by the Company to timely pay pursuant
to Article VI all ad valorem real property taxes as-
sessed with respect to the Development Property, or to
provide or maintain the Letter of Credit or the Guaran-
ties required by Sections 6_.3 or 6.4.
/LbL Failure by the Company to commence and com-
plete construction of the Minimum Improvements pursuant
to the terms, conditions and limitations of Article IV.
(c Failure by the Company to reconstruct the
Minimum Improvements when required pursuant to Sections
5.1 and 5.2.
ALd2, Transfer of any interest in the Company or the
Project in violation of the provisions of Article IX.
(e) Failure by the Company to substantially ob-
serve or perform any material covenant, condition, obli-
gation or agreement on its part to be observed or per-
formed under this Agreement.
(f) The Holder of any Mortgage on the Development
Proper y, or any improvements thereon, or any portion
thereof, commences foreclosure proceedings as a result
of any default under the applicable Mortgage documents.
Section 10.2. Remedies on Default.LWhenever any Event
of Default referred to in Section 10.1 occurs and is con-
tinuing, the Authority or the City, as specified below, may
take any one or more of the following actions after provi-
sion of thirty (30) days' written notice to the Company and
the Holder of the First Mortgage of the Event of Default by
the Authority, but only if the Event of Default has not been
cured within said thirty (30) days, or if the Event of De-
fault cannot be cured within thirty (30) days and the Com-
pany does not provide assurances to the Authority and the
City reasonably satisfactory to the Authority and the City
that the Event of Default will be cured as soon as reason-
ably possible:
(a) The Authority and the City may suspend their
performance under this Agreement until they receive
10 - 1
assurances from the Company, deemed adequate by the
Authority and the City, that the Company will cure its
default and continue its` performance under this Agree-
ment.
(b) If prior to purchase of the Development Prop-
erty by the Authority, the Authority and the City may
cancel and rescind the Agreement.
(c) The Authority may withhold the Certificate of
Completion. A
/LUL The Authority may draw upon any guarantee pro-
vided to the Authority pursuant to any of the terms of
this Agreement according to its terms.
e) The Authority and/or the City may take any
action, including legal or administrative action, which
may appear necessary or desirable to collect any pay-
ments due under this Agreement, or to enforce perfor-
mance and observance of any obligation, agreement, or
covenant of the Company under this Agreement.
Section 10.3. Revesting Title in the Authority Upon
Happening of Event Subsequent to Conveyance to the Com-
pany. In the event that subsequent to reconveyance of the
Development Property or any part thereof to the Company by
the Authority and prior to receipt by the Company of the
Certificate of Completion, and subject to the terms of any
First Mortgage:
(a) the Company shall fail to begin construction
of the Minimum Improvements in conformity with this
Agreement, such failure is not due to Unavoidable Delays
and such failure to begin construction shall not be
cured within sixty (60) days after written notice to do
so; or
(b) the Company shall, after commencement of the
construction of the Minimum Improvements, default in or
violate its obligations with respect to the construction
of the Minimum Improvements, or shall abandon or sub-
stantially suspend construction work, such act or ac-
tions are not due to Unavoidable Delays and any such
default, violation, abandonment, or suspension shall not
be cured within ninety (90) days after written demand by
the Authority to do so; or
(c) there is, in violation of this Agreement, any
transfer of the Development Property or any part
thereof, and such violation shall not be cured within
ninety (90) days after written demand by the Authority
to the Company; or
10 - 2
(d) the Holder of any, Mortgage commences, fore-
closure proceedings as a -result of any default under the
applicable Mortgage documents; however, any such action
by a Holder shall not constitute cause for the Authority
to reenter upon- the Development Property under this
Section 10.3 if such Holder, or such Holder jointly with
the Company: (i) assumes all obligations and covenants
of the Company under this Agreement; and (ii) executes
with the Authority an indemnification agreement with
sufficient collateral to indemnify the Authority fully
for any loss the Authority might suffer through failure
to exercise their remedies under this Agreement;
then the Authority shall have the right to re-enter and take
possession of the Development Property and to terminate (and
revest in the Authority pursuant to the provisions of this
Section 10.3 subject only to any superior rights in any
Holder acquiesced in by the Authority pursuant to Section
8.6) the estate conveyed by the Development Property Deed to
the Company, it being the intent of this provision, together
with other provisions of this Agreement, that the conveyance
of the Development Property to the Company shall be made
upon the condition that, and that the Development Property
Deed shall contain a condition subsequent to the effect
that, in the event of any default under this Section 10.3 on
the part of the Company and failure on the part of the Com-
pany to cure such default within the period and in the man-
ner stated in such subdivision, the Authority may declare a
termination in favor of the Authority of the title and of
all the Company's rights and interests in and to the Devel-
opment Property conveyed to the Company, and that such title
and all rights and interests of the Company, and any assigns
or successors in interest to and in the Development Prop-
erty, shall revert to the Authority (subject to the provi-
sions of Section 10.4), but only if the events stated in
Section 10.3(a) -(d) have not been cured within the time
period provided above, or, if the events cannot be cured
within such time periods, the Company does not provide
assurances to the Authority, satisfactory to the -Authority,
that the events will be cured as soon as reasonably pos-
sible.
Section 10.4. Resale of Reacquired Property; Disposi-
tion of Proceeds. Upon the revesting in the Authority of
title to the Development Property or any part thereof as
provided in Section 10.3, the Authority shall, pursuant to
its responsibilities under law, use its best efforts, sub-
ject to any rights or interests in such property or resale
granted to any Holder pursuant to Section 8.6 and previously
acquiesced to by the Authority, to resell the Development
Property or part thereof as soon and in such manner as the
10 - 3
Authority shall find feasible and consistent with the objec-
tives of such law and of the Redevelopment Plan to a .quali-
fied and responsible party or parties (as determined by the
Authority in its sole discretion) who will assume the obli-
gation of making or completing the Minimum Improvements or
such other improvements in their stead as shall be satis-
factory to the Authority and in accordance with the uses
specified for such Development Property or part thereof in
the Redevelopment Plan. Subject to any rights or interests
in such property or proceeds granted to any Holder pursuant
to Section 8.6 and previously acquiesced to by the Author-
ity, upon such resale of the Development Property the pro-
ceeds thereof shall be applied:
(a) First, to pay all unpaid real estate taxes
which have or shall become due and payable with respect
to the Development Property and improvements thereon in
the calendar year in which the Development Property is
resold, and to pay any and all delinquent real estate
taxes, including any interest and penalties accrued
thereon, unpaid upon the date of resale of the Develop-
ment Property;
(b) Second, to pay the principal and interest on
any Mortgage(s) created on the Development Property, or
any portion thereof, or any improvements thereon, pursu-
ant to Article VIII. If more than one Mortgage on the
Development Property, or any portion thereof, or any
improvements thereon, is created pursuant to Article
VIII, and insufficient proceeds of the resale exist to
pay the principal of, and interest on, each such Mort-
gage in full, then such proceeds of the resale as are
available shall be used to pay the principal of and
interest on each such Mortgage in their order of prior-
ity, or by mutual agreement of all contending parties
including the Company, or by operation of law;
(c) Third, to reimburse the Authority, on its own
behalf or on behalf of the City, for all allocable costs
and expenses incurred by the Authority or the City,
including but not limited to salaries of personnel, in
connection with the recapture, management and resale of
the Development Property or part thereof (but less any
income derived by the Authority from the property or
part thereof in connection with such management); any
payments made or necessary to be made to discharge any
encumbrances or liens (except for Mortgages) existing on
the Development Property or part thereof at the time of
revesting of title thereto in the Authority or to dis-
charge or prevent from attaching or being made any sub-
sequent encumbrances or liens due to obligations, de-
faults or acts of the Company, its successors or trans -
10 - 4
ferees (except with respect to Mortgages); any expendi-
tures made or obligations incurred with respect to the
making or completion of the Minimum Improvements or any
part thereof on the Development Property or part
thereof; and any amounts otherwise owing to the City or
to the Authority (including water and sewer charges) by
the Company and its successors or transferees; the Au-
thority shall reimburse any moneys retained by the Au-
thority on behalf of the City under this Section 10.4(c)
to the City within 30 days of the date of final distri-
bution of the proceeds of sale of the Development Pro-
perty pursuant to this Section 10.4; and
(d) Fourth, to reimburse the Company up to the
amount equal to (i) the cash actually invested by the
Company in making ayvy\lof the Minimum Improvements on the
Development Property or part thereof, less (ii) any
gains- or income withdrawn or made by it from this Agree-
ment or the Development Property.
Any balance remaining after such reimbursements shall be
retained by the Authority as its property.
Section 10.5. No Remedy Exclusive. No remedy herein
conferred upon or reserved to the Authority 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 stat-
ute. 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 10.6. No Additional Waiver Implied by One Wai-
ver. 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 10.7. Agreement to Pay Attorney's Fees and
Expenses. Whenever any Event of Default occurs and the
Authority 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 Company herein contained,
the Company agrees that it shall, on demand therefor, pay to
the Authority the reasonable fees of such attorneys and such
other expenses so incurred by the Authority.
rki
10 - 5
ARTICLE XI
Additional Provisions
Section 11.1. Restrictions on Use. The Company agrees
for itself, its successors and assigns and every successor
in interest to the Development Property, or any part
thereof, that the Company and such successors and assigns
shall devote the Development Property to, and only to, and
in accordance with, the uses specified in the City Code, or
in the Redevelopment Plan, or in this Agreement.
Section 11.2. Conflicts of Interest. No member of the
governing body or other official of the Authority or the
City shall have any financial interest, direct or indirect,
in this Agreement, the Improved Parcel, 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 partici-
pate in any decision relating to the Agreement which affects
his or her personal interests or the interests of any corpo-
ration, partnership or association in which he or she is,
directly or indirectly, interested. No member, official or
employee of the Authority or the City shall be personally
liable to the Company in the event of any default or breach
by the Authority or for any amount which may become due to
the Company or successor or on any obligations under the
terms of this Agreement.
Section 11.3. Provisions Not Merged With Deed. None of
the provisions of this Agreement shall be merged by reason
of any deed transferring any interest in the Development
Property and any such deed shall not be deemed to affect or
impair the provisions and covenants of this Agreement.
Section 11.4. 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 11.5. 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,
(a) in the case of the Company is addressed to or
delivered personally to Minnesota Racetrack, Inc. at
5248 Valley Industrial Boulevard South, Shakopee, Minne-
sota 55379, Attention: President;
(b) in the case of the Authority, is addressed to
or delivered personally to the Authority at 129 E. 1st
Avenue, Shakopee, Minnesota 55379, Attention: Executive
Director of the Housing and Redevelopment Authority;
(c) in the case of the City, is addressed to or
delivered personally to the City at 129 E. 1st Avenue,
Shakopee, Minnesota 55379, Attention: Mayor.
(d) in, the case of the Holder of the First Mort-
gage, is addressed or delivered personally to:
Twin City Federal Savings & Loan Association, 801
Marquette Avenue, Minneapolis, Minnesota 55402,
Attention: Corporate Banking Department; Security
Pacific National Bank, 33 South Hope Street, Los
Angeles, California 90071, Attention: Corporate Banking
Development and First Trust Company of Saint Paul, 332
Minnesota Street, St. Paul, Minnesota 55101,
Attention: Corporating Banking Department.
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 11.6. Counterparts. This Agreement is executed
in any number of counterparts, each of which shall consti-
tute one and the same instrument.
Section 11.7. Modification. If the Company is re-
quested by the Holder of a Mortgage or by a prospective
Holder of a prospective Mortgage to amend or supplement this
Agreement in any manner whatsoever, the Authority will, in
good faith, consider the request with a view to granting the
same unless the Authority, in its reasonable judgment, con-
cludes that such modification is not in the public interest,
or will significantly and undesirably weaken the financial
security provided to the interests of the Authority by the
terms and provisions of this Agreement.
Section 11.8. Law Governing. This Agreement will be
governed and construed in accordance with the laws of the
State.
Section 11.9. Legal opinions. Upon execution of this
Agreement, each party shall supply the other parties with an
opinion of its legal counsel- to the effect that this Agree-
ment is legally issued or executed by, and valid and binding
upon, such party, and enforceable in accordance with its
terms.
11 - 2
Section 11.10. First Amended Agreement Rendered Null
and Void; Affect on Agreement to Amend. This Agreement
supersedes the First Amended Development Agreement in all
respects, and upon execution of this Agreement by all Par-
ties hereto, the First Amended Development Agreement shall
be null -and void and of no effect. The provisions of this
Agreement supersede and are controlling with respect to any
inconsistent provisions of the Agreement to Amend.
11 - 3
ARTICLE XII
Termination`of Agreement
Section 12.1. The Company's Options to Terminate. This
Agreement may be terminated by the Company if (i) the Com-
pany is in compliance with all material terms of this Agree-
ment -and no Event of Default has occurred; and (ii) the
Authority fails to comply with any material term of this
Agreement, and, after written notice by the Company of such
failure, the Authority has failed to cure such non-compli-
ance within ninety (90) days of receipt of such notice, or,
if such non-compliance cannot reasonably be cured by the
Authority within ninety (90) days, the Authority has not,
within ninety (90) days of receipt of such notice, provided
assurances, reasonably satisfactory to the Company, that
such non-compliance will be cured as soon as reasonably
possible.
Section Action to/Terminate. Termination of this
Agreement pursuant to Sectio 12.1 must be accomplished by
written notification by the Com an to all other Parties
within thirty (30) days after the date when such option to
terminate may first be exercised. A failure to terminate
this Agreement within such period constitutes a waiver of
the rights to terminate this Agreement due to such occur-
rence or event.
Section 12.3. Effect of Termination. If this Agreement
is terminate pursuant to this Article XII, this Agreement
shall be from such date forward null and void and of no
further effect; provided, however, the termination 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 Agree-
ment by the other party, or to recover amounts (including
payments of principal and interest on the Promissory Note,
fees, charges or reimbursements) which had accrued and be-
come due and payable as of the date of such termination.
Upon termination of this Agreement pursuant to this Article
XII, the Authority shall release all guarantees delivered to
the Authority pursuant to the terms of this Agreement, and
the Company 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 Authority shall have
no further obligations to the Company with respect to the
acquisition or sale of the Development Property.
IN WITNESS WHEREOF, the Authority has caused this Agee
ment to be duly executed in its name and on its behalfpa-
the City has caused this Agreement to be duly executed in
its name and on its behalf and its seal to be hereunto duly
12 - 1
affixed, and the Company has caused this Agreement to be
duly executed in its name and on i,ts behalf, on or as -of the
date first above written.
12 - 2
[This is a signature page to the econd Amended Contract for
Private Development, dated as o Novem er 20, 1984, by and
among the City of Shakopee, Minnesota, ttee oouusing and Rede-
velopment Authority in and for the City of Shakopee, Minne-
sota, and Minnesota Racetrack, Inc.]
n
HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE
CITY OF SHAKOPEE,
MINNESOTA
By
Chairman
And
Executive Director
12 - 3
[This is a signature page to the Second Amended Contract for
Private Development, dated as o November 20, 1984, by and
among the City of Shakopee, Minnesota, the Housing and Rede-
velopment Authority in and for the City of Shakopee, Minne-
sota, and Minnesota Racetrack, Inc.]
MINNESOTA RACETRACK, INC.
L -In
Its President
12 - 4
[This is a signature page to the Second Amended Contract for
Private Development, datedA as of November 20. 1984, by and
among the City of Shakopee, Minnesota, the Housing and Rede-
velopment Authority in and for the City of Shakopee, Minne-
sota, and Minnesota Racetrack, Inc.]
CITY OF SHAKOPEE, MINNESOTA
(SEAL) By
Mayor
By
City Administrator
By
City Clerk
12 - 5
STATE OF MINNESOTA)
)ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this
day of , 1984, by and Jeanne
Andre, the Chairman and Executive Director, respectively, of
the Housing and Redevelopment Authority in and for the City
of Shakopee, Minnesota, a political subdivision of the State
of Minnesota, on behalf of the Authority.
Notary Public
12 - 6
STATE OF MINNESOTA)
)ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this
day of , 1984, by , the _Vice
President of Minnesota Racetrack, Inc., a corporation organ-
ized under the laws of Minnesota, on behalf of the partner-
ship.
Notary Public
12 - 7
STATE OF MINNESOTA)
)ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this
day of , 1984, by Eldon Reinke, John Anderson
and Judith Cox, the Mayor, City Administrator and City
Clerk, respectively, of the City of Shakopee, Minnesota, a
municipal corporation and political subdivision organized
and existing under the Constitution and laws of the State of
Minnesota, on behalf of the City.
Notary Public
12 - 8
EXHIBIT A
(Development Property)
The Northeast Quarter of the Southeast Quarter of Section 5,
Township 115, Range 22, Scott County, Minnesota excepting
therefrom:
The West 150.00 feet of the north 333.00 feet of
the Northeast Quarter of the Southeast Quarter of
Section 5, Township 115, Range 22.
The South Half of the Southeast Quarter of Section 5, Town-
ship 115, Range 22, Scott County, Minnesota.
The Southwest Quarter of the Southwest Quarter of Section 4,
Township 115, Range 22, Scott County, Minnesota.
That part of the East Half of the Northeast Quarter of Sec-
tion 8, Township 115, Range 22, Scott County, Minnesota,
lying northerly of the centerline of County Road No. 16.
The Northwest Quarter of Section 9, Township 115, Range 22,
Scott County, Minnesota excepting therefrom:
The south 400 feet of the west 100 feet of the
South Half of the Northwest Quarter.
A - 1
EXHIBIT B
CERTIFICATE OF COMPLETION AND RELEASE OF FORFEITURE
WHEREAS, the Housing and Redevelopment Authority in and
for the City of Shakopee, Minnesota (the "Grantor"), a pub-
lic body corporate and politic, by a Deed recorded in the
Office of the County Recorder or the Registrar of Titles in
and for the County of Scott and State of Minnesota, as Deed
Document Number , has conveyed to Minnesota Race-
track, Inc., a Minnesota corporation (the "Grantee"), the
following described land (the "Development Property") in the
County of Scott and State of Minnesota, to wit:
The Northeast Quarter of the Southeast Quarter of
Section 5, Township 115, Range 22, Scott County,
Minnesota excepting therefrom:
The West 150.00 feet of the north 333.00
feet of the Northeast Quarter of the
Southeast Quarter of Section 5, Township
115, Range 22.
The South Half of the Southeast Quarter of Section
5, Township 115, Range 22, Scott County, Minnesota.
The Southwest Quarter of the Southwest Quarter of
Section 4, Township 115, Range 22, Scott County,
Minnesota.
That part of the East Half of the Northeast Quarter
of Section 8, Township 115, Range 22, Scott County,
Minnesota, lying northerly of the centerline of
County Road No. 16.
The Northwest Quarter of Section 9, Township 115,
Range 22, Scott County, Minnesota excepting there-
from:
The south 400 feet of the west 100 feet
of the South Half of the Northwest Quar-
ter.
and
WHEREAS, said Deed incorporated and contained certain
covenants and restrictions, the breach of which by the
Grantee, its successors and assigns, would result in a for-
feiture and right of re-entry by the Grantor, its successors
and assigns, said covenants and restrictions being set forth
in said Deed and in a Contract For Private Development,
executed by and among the Grantor, the Grantee and the City
of Shakopee, Minnesota, and dated June , 1984 (the "De-
velopment Agreement"); and
WHEREAS, the Grantee has to the present date performed
said covenants and conditions insofar as it is able in a
manner deemed sufficient by the Grantor to permit the execu-
tion and recording of this certification;
NOW, THEREFORE, this is to certify that all building
construction and other physical improvements specified to be
done and made by the Grantee have been completed and the
above covenants and conditions in said Deed and Development
Agreement have been performed by the Grantee therein and
that the provisions for forfeiture of title and right to re-
entry for breach of condition subsequent by the Grantor,
contained therein, are hereby released absolutely and for-
ever insofar as they apply to the land described herein, and
the County Recorder or the Registrar of Titles in and for
the County of Scott and State of Minnesota is hereby autho-
rized to accept for recording and to record the filing of
this instrument, to be a conclusive determination of the
satisfactory termination of the covenants and conditions of
the contract referred to herein which would result in a
forfeiture by the Grantee, its successors and assigns, and
right of re-entry in the Grantor, its successors and
assigns, as set forth in said Deed, and that said Deed shall
otherwise remain in full force and effect.
THE HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY
OF SHAKOPEE, MINNESOTA
By
Its Chairman
014
Its Secretary
EXHIBIT C
PERMITTED'ENCUMBRANCES
1. Any law, ordinance or governmental regulation (including
but not limited to building and zoning ordinances) re-
stricting or regulating or prohibiting the occupancy,
use or enjoyment of the Development Property, or regu-
lating the character, dimensions or location of any
improvement now or hereafter erected on the Development
Property, or prohibiting a separation in ownership or a
reduction in the dimensions or area of the Development
Property, or the effect of any violation of any such
law, ordinance or governmental regulation.
2. Rights of eminent domain or governmental rights of po-
lice power.
3. Defects, liens, encumbrances, adverse claims or other
matters: (a) resulting in no loss or damage to the Com-
pany; and (b) attaching or created pursuant to Article
VI subsequent to the conveyance of the Development Prop-
erty to the Company by the Authority.
4. Such encum ances listed on title policy obtained by
the Company provided that no such encumbrance shall, in
the opinion of counsel to the Authority, result in the
title to the Development Property held by the Company
not constituting "marketable title."
A5. Such other encumbrances Ato which the Authority shall
agree.
Ab. The First Mortaa e and any other First Mortgage subse-
quently approvedjb the -Authority.
l �7_ Any Mortgage subordinate to the Authority Mortgage as
permitted under Section 8.2.
C - 1
EXHIBIT D
QUALIFYING IMPROVEMENTS
The following are the Qualifying Improvements which the
Company expects to construct and perform on the Development
Property:
Qualifying Improvements
Earthwork and grading
Roads and parking
Curb and gutter
Watermains
Sanitary sewers
Storm sewers
Sidewalk
Open space amenities
Upon substantial completion of the requisite Qualifying
Improvements as provided in Section 3.2 of the Development
Agreement, the Company expects to submit to the Authority a
certification with respect thereto substantially in the form
of Exhibit E attached to and made a part of the Development
Agreement, certifying as the actual costs incurred with
respect to the requisite Qualifying Improvements for pur-
poses of calculation of the Purchase Price pursuant to Sec-
tion 3.3 of the Development Agreement.
D - 1
EXHIBIT E
CERTIFICATE AS TO
COMPLETION AND COSTS OF
QUALIFYING IMPROVEMENTS
The undersigned, , is the vim president
of Minnesota Racetrack, Inc., a corporation organized and
existing under the laws of the State of Minnesota (the "Com-
pany"). The Company, the City of Shakopee, Minnesota (the
"City") and the Housing and Redevelopment Authority in and
for the City of Shakopee, Minnesota (the "Authority") have
executed a certain Second Amended Contract for Private De-
velopment, dated as ofA_November 20, 1954 (the "Development
Agreement") with respect to the acqusition of certain real
property located in the City (the "Development Property")
and the construction of a horse -racing facility and certain
related improvements (the "Minimum Improvements") thereon by
the Company. Pursuant to the provisions of the Development
Agreement, and particularly Section 3.2 and Exhibit D
thereof, the Company agreed to construct and perform certain
improvements (the "Qualifying Improvements") of a primarily
public nature on the Development Property. The undersigned,
acting for and on behalf of the Company, hereby certifies as
of the date hereof as follows:
1. As of the date hereof, the Company has substan-
tially completed the following Qualifying Improvements
listed in Exhibit D to the Development Agreement, and the
construction and performance of all such Qualifying Improve-
ments is in substantial conformance with the Construction
Plans (as defined in the Development Agreement) submitted to
and approved by the Authority:
2. The following are the true and correct costs, to
the best knowledge of the undersigned, incurred by the Com-
pany with respect to construction and performance of the
Qualifying Improvements:
Qualifying Improvements Cost of Improvement Name of Payee
E - 1
Attached hereto are copies of the bills submitted by con-
tractors or subcontractors, or other evidence satisfactory
to the Authority, evidencing the costs listed above.
The Company understands and agrees that the costs shown
on this Certificate will be used by the Authority in cal-
culating the Purchase Price (as defined in the Development
Agreement) to be paid by the Authority for the Development
Property pursuant to Section 3.3 of the Development Agree-
ment.
IN WITNESS WHEREOF, the undersigned has hereunto set his
hand this day of , 198.
MINNESOTA RACETRACK, INC.
By
Its Vice President
E - 2