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City Council - 08/01/2006 (4)
AGENDA EDEN PRAIRIE CITY COUNCIL MEETING TUESDAY,AUGUST 1,2006 7:00 PM,CITY CENTER Council Chamber 8080 Mitchell Road CITY COUNCIL: Mayor Nancy Tyra-Lukens, Councilmembers Brad Aho, Sherry Butcher, Ron Case, and Philip Young CITY STAFF: City Manager Scott Neal, Parks & Recreation Director Bob Lambert, Public Works Director Eugene Dietz, City Planner Michael Franzen, Community Development Director Janet Jeremiah, City Attorney Ric Rosow and Council Recorder Deb Sweeny I. ROLL CALL/CALL THE MEETING TO ORDER II. PLEDGE OF ALLEGIANCE III. COUNCIL FORUM INVITATION IV. PROCLAMATIONS/PRESENTATIONS V. APPROVAL OF AGENDA AND OTHER ITEMS OF BUSINESS VI. MINUTES A. COUNCIL WORKSHOP HELD TUESDAY,JULY 18,2006 B. CITY COUNCIL MEETING HELD TUESDAY,JULY 18,2006 VII. CONSENT CALENDAR A. CLERK'S LICENSE LIST B. ADOPT RESOLUTION APPROVING FINAL PLAT OF EDEN BLUFF HIGHLANDS 3 ADDITION C. APPROVE SECOND READING OF ORDINANCE AMENDING CITY CODE SECTION 3.05 REGARDING DISCONTINUANCE OF MUNICIPAL UTILITIES FOR FAILURE TO ALLOW METER SERVICE AND REPAIR/ REPLACEMENT D. APPROVE RELEASE OF LAND FROM SPECIAL ASSESSMENT AGREEMENT 91-08 (LOTS 2-8,BLOCK 1,BLUFFS EAST 11 ADDITION) E. APPROVE PARTIAL RELEASE OF LAND FROM SPECIAL ASSESSMENT AGREEMENT AND FIRST AMENDMENT TO SPECIAL ASSESSMENT AGREEMENT (LOT 14,BLOCK 6,HENNEPIN VILLAGE) CITY COUNCIL AGENDA August 1, 2006 Page 2 F. APPROVE SALE OF ENGINE 22 TO HENNEPIN TECHNICAL COLLEGE IN RETURN FOR TUITION CREDITS VIII. PUBLIC HEARINGS/MEETINGS A. TIF REDEVELOPMENT DISTRICT- SUPERIOR OFFICE CENTER PROJECT (FORMER PHYSICAL ELECTRONICS SITE)(Resolution) B. SUPERIOR OFFICE CENTER by United Properties. Request for: Guide Plan Change from Industrial to Office on 10.36 acres, Planned Unit Development Concept Review on 10.36 acres, Planned Unit Development District Review and Zoning District Change from I-2 to Office on 10.36 acres, Resolution for Site Plan Review on 10.36 acres, and Preliminary Plat on 10.36 acres into one lot. Location: 6509 Flying Cloud Drive. (Resolution for Guide Plan Change; Resolution for PUD Concept Review,Ordinance for PUD District Review and Zoning District Change,Resolution for Preliminary Plat) C. WOODLAND 2ND ADDITION by Tom Robertson. Request for: Preliminary Plat of 27,979 square feet into one lot. Location: 6983 Woodland Drive. (Resolution for Preliminary Plat) IX. PAYMENT OF CLAIMS X. ORDINANCES AND RESOLUTIONS A. FIRST READING OF AN ORDINANCE AMENDING CITY CODE SECTION 9.07 RELATING TO DANGEROUS AND POTENTIALLY DANGEROUS DOGS XI. PETITIONS,REQUESTS AND COMMUNICATIONS XII. REPORTS OF ADVISORY BOARDS & COMMISSIONS XIII. APPOINTMENTS XIV. REPORTS OF OFFICERS A. REPORTS OF COUNCILMEMBERS B. REPORT OF CITY MANAGER C. REPORT OF THE COMMUNITY DEVELOPMENT DIRECTOR D. REPORT OF PARKS AND RECREATION DIRECTOR E. REPORT OF PUBLIC WORKS DIRECTOR 1. Prospect Road Briefinu Alternatives Discussion CITY COUNCIL AGENDA August 1, 2006 Page 3 F. REPORT OF POLICE CHIEF G. REPORT OF FIRE CHIEF H. REPORT OF CITY ATTORNEY XV. OTHER BUSINESS XVI. ADJOURNMENT ITEM NO.: VI.A. UNAPPROVED MINUTES JOINT WORKSHOP OF THE CITY COUNCIL&PLANNING COMMISSION & OPEN FORUMIOPEN PODIUM TUESDAY,JULY 18,2006 CITY CENTER 5:00—6:25 PM,HERITAGE ROOM II 6:30—7:00 PM,COUNCIL CHAMBER CITY COUNCIL: Mayor Nancy Tyra-Lukens, Councilmembers Brad Aho, Sherry Butcher, Ron Case, and Philip Young PLANNING COMMISSION: Ray Stoelting—Chair,Fred Seymour—Vice Chair,Jon Duckstad,John Kirk, Vicki Koenig, Jerry Pitzrick,Peter Rocheford, Jon Stoltz, Frank Powell CITY STAFF: City Manager Scott Neal, Police Chief Dan Carlson,Fire Chief George Esbensen, Public Works Director Eugene Dietz,Parks and Recreation Director Bob Lambert, Community Development Director Janet Jeremiah, Communications Manager Pat Brink, Assistant to the City Manager Michael Barone, City Attorney Ric Rosow, and Recorder Lorene McWaters Heritage Room H Councilmember Phil Young and Planning Commission members Jon Stoltz and Peter Rocheford were absent. I. COMP PLAN UPDATE Greg Ingraham of HKGI presented a PowerPoint on the Land Use element of the Guide Plan update. The Land Use Plan has several roles and functions: • Includes an inventory of land uses and surface water resources • Guides for future land uses to accommodate population growth, economic development and redevelopment • Guides public and private sector investments • Establishes the City's land use goals,policies and implementation strategies Ingraham asked for confirmation that the City wants the Land Use Plan to focus on: • Land redevelopment, particularly in the Major Center Area(MCA) and Golden Triangle Area(GTA), economic development and housing • Housing and transit relationships, especially in the Southwest LRT corridor • Balancing land use and transportation • Meeting Met Council update requirements • Implementation strategies MCA Ingraham asked for input on wrapping the MCA Land Use Plan into the Comp Plan. He asked whether Council wants the Land Use Plan amended to focus on a mixed-use walkable Town Center only, or do they want to include the balance of the MCA in the land use amendments? Ingraham said adopting new land designations for the external area around the Town Center perimeter could be controversial because it puts more limits on development. He said it is possible to adopt minimal density requirements inside the Town Center and maximum densities outside the Town Center. Then the City would not be limiting opportunities for good redevelopment proposals that do not fit exactly into the land use recommendation. There was general agreement that the land use plan should be fairly prescriptive within the Town Center, but less prescriptive in the perimeter. Ingraham said zoning will have to match the comp plan, but it can be"flexible"zoning. GTA Ingraham said that the GTA study recommends a range of land uses. He asked Council to confirm they want the Comp Plan to incorporate the hybrid land use/transit alternative, and that planning and economic development priorities should focus on the MCA/Town Center area. Southwest Eden Prairie Neighborhood Services Focus groups, neighborhood meetings and the community survey scheduled for later this year can be used to determine what types of services people living in southwest Eden Prairie want. Potential locations and development feasibility will also be determined. Other Potential Redevelopment Sites Igraham identified the BFI land fill and Midwest Asphalt as possible redevelopment areas. He asked whether or not the City wants to pursue land use changes for these sites. Ingraham said any BFI site use would have to be fairly passive because of the nature of the site.The Comp Plan update provides an opportunity to guide the Midwest Asphalt site to a higher use. The City could choose to back down later if a reasonable alternative is proposed. Council Chamber IL OPEN FORUM A. CINDY ELLIS Ms.Ellis said she and her father,Leslie Ellis,will be traveling to Washington in September for the Celebration on the Hill event sponsored by the American Cancer Society. The purpose of the event is to encourage lawmakers to address cancer issues. B. SCOTT FREDRICKSON Mr. Fredrickson spoke on behalf of a number of Bearpath residents about a Sienna Corp.proposal on the edge of Chanhassen that calls for tree removal and grading on an Eden Prairie outlot adjacent to the 15t'hole of the Bearpath Golf Course. The residents oppose the tree removal and grading and asked the Council to support them. Mr. Vogelbacher of Sienna Corp.was also present and commented briefly on the project. Councilmember Case invited both parties to stay for discussion of the project during the Councilmember Reports portion of the regular Council Meeting. A. TOM BRUNT Mr. Briant announced formation of an off-shoot of the Eden Prairie Taxpayers Alliance called Eden Prairie Taxpayers for Change. He said the group intends to become actively involved in the upcoming Council and Mayoral campaigns. III. OPEN PODIUM IV. ADJOURNMENT ITEM NO.: VI.B. UNAPPROVED MINUTES EDEN PRAIRIE CITY COUNCIL TUESDAY,JULY 18,2006 7:00 P.M.,CITY CENTER Council Chamber 8080 Mitchell Road CITY COUNCIL: Mayor Nancy Tyra-Lukens, Councilmembers Brad Aho, Sherry Butcher, Ron Case and Philip Young STAFF MEMBERS: City Manager Scott Neal, Parks&Recreation Director Bob Lambert, Public Works Director Eugene Dietz, City Planner Michael Franzen, Community Development Director Janet Jeremiah, City Attorney Ric Rosow and Council Recorder Carol Pelzel I. ROLL CALL/CALL THE MEETING TO ORDER Mayor Tyra-Lukens called the meeting to order at 7:05 p.m. Councilmember Young was absent. Neal explained this meeting is not being broadcast to the public this evening because Staff is in the process of upgrading the audio and video system. This meeting will be broadcast at a later date. II. PLEDGE OF ALLEGIANCE III. COUNCIL FORUM INVITATION IV. PROCLAMATIONS/PRESENTATIONS A. PRESENTATION ON LIQUOR STORE REMODELING PLAN Neal explained that Sue Kotchevar, Chief Financial Officer,will present the remodeling plan for the City's liquor store located on Den Road.The City currently operates three liquor stores and the store on Den Road is owned by the City while the other two are leased. The City was given the opportunity to acquire additional square footage at the Den Road store and Kotchevar has been working with a consultant on developing a plan to improve this store. Kotchevar presented a brief overview of the existing store informing the Council of how the liquor store is currently operating. She presented an overview of the proposed floor plan adding 1,788 square feet to the store.The proposed design adds a wine tasting area and provides an opportunity for better store signage and a new cash rack with four registers.Kotchevar also reviewed with the Council the proposed changes to the front of the store and provided the detailed design elements. City Council Meeting July 18, 2006 Page 2 Tyra-Lukens explained tax dollars will not be used to remodel the liquor store but revenue generated from the sale of liquor will be used. These improvements will increase the store's revenue which goes into the Capital Improvement Plan and benefits all Eden Prairie residents. Butcher asked how these improvements to the front of the store will be incorporated into the Hollywood Video design located next door since the City owns the entire building. Kotchevar responded they have not specifically addressed that at this time but plan to make both stores consistent in appearance. Neal explained the Council is being asked to authorize Staff to proceed with the plans and specifications for the Den Road Liquor Store remodel project,to authorize hiring of an architect and to authorize bidding for the project. The bid results will be brought back to the City Council for final approval. V. APPROVAL OF AGENDA AND OTHER ITEMS OF BUSINESS Tyra-Lukens added two items under Reports of Councilmembers;award received by the City and dog park. Case said he has several items he would like to discuss under Reports of Councilmembers. MOTION: Butcher moved, seconded by Aho,to approve the agenda as published and amended. Motion carried,4-0. VI. MINUTES A. OPEN FORUM/OPEN PODIUM HELD TUESDAY,JUNE 20,2006 MOTION: Aho moved, seconded by Case,to approve the Open Forum/Open Podium minutes of June 20, 2006, as published. Motion carried,4-0. B. CITY COUNCIL MEETING HELD TUESDAY,JUNE 20,2006 MOTION: Case moved, seconded by Aho,to approve the June 20, 2006, City Council meeting minutes as published. Motion carried,4-0. VII. CONSENT CALENDAR A. CLERK'S LICENSE LIST B. EDEN BLUFF BUSINESS PARK PHASE 2-4 by United Properties. Second reading of the Ordinance for Planned Unit Development District Review with waivers on 28.11 acres and Zoning District Change from Rural to Office on 25.52 acres and from Rural to Neighborhood Commercial on 2.59 acres, Resolution for Site Plan Review.Location: Charlson Road and Highway 212 (Ordinance No. 18-2006 for 13-2006 PUD District Review with waivers and Zoning District Change,Resolution No.2006-85 for Site plan Review) City Council Meeting July 18, 2006 Page 3 C. ADOPT RESOLUTION NO.2006-86 APPROVING JURISDICTIONAL TRANSFER AGREEMENT NO.PW 18-49-06 WITH HENNEPIN COUNTY FOR REALIGNMENT OF CO.ROAD 4 SOUTH OF CO.ROAD 1,I.C. 5566 D. APPROVE PROFESSIONAL SERVICES AGREEMENT WITH SEH,INC. FOR CONCEPTUAL PLANS FOR RECONSTRUCTION OF DELL ROAD E. ADOPT RESOLUTION NO.2006-87 AUTHORIZING ACQUISITION OF TAX FORFEITED LANDS F. AWARD BID FOR LOWER PURGATORY CREEK NATURE TRAIL CONSTRUCTION G. APPROVE AGREEMENT WITH LHB,INC. TO CONDUCT INSPECTIONS AT 11995 AND 8140 FLYING CLOUD DRIVE; AND 8110, 8100 AND 8108 EDEN ROAD H. APPROVE AGREEMENT WITH EHLERS AND ASSOCIATES TO CONDUCT A FINANCING ANALYSIS AT 11995 AND 8140 FLYING CLOUD DRIVE; AND 8110,8100 AND 8108 EDEN ROAD I. APPROVE AGREEMENT WITH LHB,INC.,TO CONDUCT A BUILDING INSPECTION AT 7505 FLYING CLOUD DRIVE J. APPROVE AGREEMENT WITH EHLERS AND ASSOCIATES TO CONDUCT A FINANCING ANALYSIS FOR 7505 FLYING CLOUD DRIVE K. AUTHORIZE NEXT STEPS FOR DEN ROAD LIQUOR STORE PROJECT INCLUDING HIRING AN ARCHITECT AND BIDDING DEN ROAD LIQUOR STORE REMODEL PROJECT L. ADOPT RESOLUTION NO.2006-88 AUTHORIZING AGREEMENT FOR SAFE & SOBER GRANT M. ADOPT RESOLUTION NO.2006-89 AUTHORIZING THE CITY OF EDEN PRAIRIE TO CONSENT TO TRANSFER OF THE PARK AT CITY WEST APARTMENTS FROM PARK AT CITY WEST LIMITED PARTNERSHIP TO PACW EDEN PRAIRIE LLC N. APPROVE THIRD AMENDMENT TO THE HOLLYWOOD VIDEO LEASE MOTION: Butcher moved, seconded by Aho,to approve Items A-N on the Consent Calendar.Motion carried,4-0. City Council Meeting July 18, 2006 Page 4 VHL PUBLIC HEARINGS/MEETINGS A. SPECIAL ASSESSMENT HEARING FOR APPROVAL OF HILLTOP STREET AND STORM SEWER IMPROVEMENT SPECIAL ASSESSMENTS (Resolution No.2006-90) Neal reported official notice of this public hearing was published in the June 29 Eden Prairie Sun Current and sent to 26 property owners.The special assessment hearing is for the street and storm sewer assessment portion of Hilltop Road improvements authorized by the Council on May 2, 2006. Al Gray, City Engineer,reported Staff did hold an informational meeting with the neighborhood and gave the residents an opportunity to express their feelings on the assessment. John Hansen, 16200 Hilltop Road, clarified the improvements are to be made to the street of Hilltop Road. MOTION: Butcher moved, seconded by Case,to close the public hearing and adopt Resolution No. 2006-90 approving the Hilltop Road street and storm sewer improvement special assessments. Motion carried,4-0. B. AMENDED TAX INCREMENT FINANCING PLAN AND AN AMENDED PROJECT MANAGEMENT AGREEMENT—PRAIRIE VILLAGE REDEVELOPMENT PROJECT(Resolution No.2006-91) Neal reported official notice of this public hearing was published in the June 29 Eden Prairie Sun Current.The HRA proposes to amend the tax Increment Financing Plan for its TIF District No. 10 to increase the total amount of tax increment expenditures from TIF District No. 10. These increased tax increment expenditures will provide for the payment of previously incurred public, improvement costs of the developer of the Prairie Village development. In return, the developer will agree to continue to offer the reduced rents that are currently in place at Prairie Village pursuant to an interest rate reduction program, notwithstanding the termination of such program this year.Neal pointed out the HRA did adopt a Resolution earlier this evening amending the TIF Plan and amending the Project Management Agreement. MOTION: Case moved, seconded by Aho,to close the public hearing and adopt Resolution No.2006-91 approving the amended tax increment financing plan and an amended project management agreement. Motion carried,4-0. C. VACATION OF PUBLIC ROADWAY EASEMENT OVER PART OF LOT 2,BLOCK 1,GRAY FOX BLUFF,VACATION 06-05 (Resolution No.2006- 7 City Council Meeting July 18, 2006 Page 5 Neal reported official notice of this public hearing was published in the June 29 Eden Prairie Sun Current and three property owners were notified. The property owner has requested the vacation of the public roadway easement to facilitate replatting the property to The Preserve at Edenvale, approved by the Council on December 5, 2005. MOTION: Aho moved, seconded by Butcher, to close the public hearing and adopt Resolution No.2006-92 vacating the public roadway easement over part of Lot 2,Block 1, Gray Fox Bluff.Motion carried,4-0. D. WOODLAND 2ND ADDITION by Tom Robertson, Request for: Preliminary Plat of 27,979 square feet into one lot. Location: 6983 Woodland Drive. (Resolution for Preliminary Plan) Neal explained official notice of this public hearing was published in the July 6 Eden Prairie Sun Current and sent to 80 property owners. This is a preliminary plat of.64 acres into one lot in order to build a single-family home.This lot is part of the Woodland Addition which was approved as a replat of Edenvale 3ra Addition and consists of 57 single-family residential lots and two outlots.Outlot A was originally approved as private open space with ownership by the Edenvale Homeowners' Association, which no longer exists. Since the Association no longer exists, a judge released the private open space covenants recorded on the property. Jeff Strate, 15021 Summerhill Drive, explained he lives in this neighborhood and is not opposed to this project,However,he does have some questions he would like clarified before the Council considers approval of this request. Originally, this area was planned to be open space as part of the Edenvale PUD.He questioned how Outlot A differs from the outlot the City intends to acquire. Strate said there are also concerns with keeping Bent Creek as a golf course which is part of the PUD as is Outlot A.He indicated there may be some legal issues. Dietz explained the primary difference between these outlots is that the property was acquired from Edenvale Land Corporation. The outlot Strate is referring to had been transferred to the Homeowners' Association which no longer exists. This outlot went tax forfeited and during that process the City had the option to acquire it for municipal use. At the time the City did not need additional park space in that area and did not acquire it. This outlot is now in private ownership. Case pointed out even though Outlot A is privately owned, so is Bent Creek Golf Course and both parcels had been pre-guided as open space. Case said they may be setting a precedent by taking a piece of land that had been designated as open space and now choosing to sell it off for development.He questioned how this would be different from what Bent Creek could do. Rosow explained when this proposal came into the City, it was noted the development would be subject to a Declaration of Covenant and conditions. Staff City Council Meeting July 18, 2006 Page 6 encouraged the applicant to not consider applying until these issues were resolved. Rosow said he has not had the opportunity to review this request and asked for additional time to do so and to discuss further with City staff. Case asked if it would be possible to table this item. Rosow indicated this item could be tabled and still be within the 60-day requirement. MOTION: Butcher moved, seconded by Case, to close the public hearing and to continue discussion of this item to the August 1 meeting. Motion carried,4-0. E. SOUTHWEST METRO TRANSIT BUS GARAGE ADDITION By Southwest Metro Transit Commission. Request for: Planned Unit Development Concept Review on 10.1 acres, Planned Unit Development District Review with waivers and Zoning District Amendment in the I-2 Zoning District on 10.1 acres, Resolution for Site Plan Review on 10.1 acres.Location: 14405 62"d Street West. (Resolution for PUD concept Review,Ordinance for PUD District Review with waivers and Zoning District Amendment) Neal reported the applicant has requested this item be continued to the August 15 City Council meeting. The plans need to be revised based on soil conditions and costs. MOTION: Case moved, seconded by Butcher,to continue the public hearing to the August 15, 2006, City Council meeting. Motion carried,4-0. IX. PAYMENT OF CLAIMS MOTION: Aho moved, seconded by Case, to approve Payment of Claims as submitted. The motion carried on a roll call vote with Aho,Butcher,Case and Tyra-Lukens voting"aye". X. ORDINANCES AND RESOLUTIONS A. FIRST READING OF AN ORDINANCE AMENDING CITY CODE SECTION 3.05 REGARDING DISCONTINUANCE OF MUNICIPAL UTILITIES FOR FAILURE TO ALLOW METER SERVICE AND REPAIR/REPLACEMENT Neal explained the City serves approximately 18,000 utility customers with water and sewer service. For the past four years, staff and contractors have been converting the method of meter reading from a walking route system to a radio read system. There are about 180 customers that have not responded to repeated attempts to allow entry into their homes for the conversion process. Staff is not proposing to utilize"shutting off of service"at this time.However,as they reviewed their options with the City Attorney's office,they discovered a flaw in the Ordinance. The current Ordinance allows shutting off or discontinuing service for violation of City Code relating to the connection, failure to pay and for City Council Meeting July 18, 2006 Page 7 fraud/misrepresentation. The proposed Ordinance will also allow discontinuance of service for failure to allow meter service and repair/replacement. MOTION: Butcher moved, seconded by Aho,to approve the first reading of an Ordinance amending City Code Section 3.05 regarding discontinuance of municipal utilities for failure to allow meter service and repair/replacement. Motion carried,4-0. B. RESOLUTION NO.2006-93 IDENTIFYING NEED FOR LIVABLE COMMUNITIES DEMONSTRATION ACCOUNT FUNDING AND AUTHORIZING APPLICATION FOR GRANT FUNDS Neal reported Livable Communities Demonstration Account(LCDA) funding is being requested to offset eligible costs relative to Phase I of the town center redevelopment in the southwest quadrant of Hwy. 212 and Singletree Lane. Jeremiah stated Staff discussed with the Council the priority of the major center area and the town center as part of the Comprehensive Plan Update. They now have the opportunity to jump start the Town Center Redevelopment.A developer has a purchase agreement on five parcels and three buildings have been determined substandard. Staff has had an opportunity to do some of the financial analysis on the proposed redevelopment of mixed use and structured parking. On behalf of the City, a consultant is working to coordinate the plans to make sure they work together. Jeremiah indicated this is a wonderful opportunity to work with an expensive site. However,there does appear to be a gap in funding which TIF could potentially fill. In the meantime, Staff has submitted a request for $2,045,000 of funding from LCDA for this project to offset some of the expenses. Staff is requesting authorization to submit the application along with the Resolution. Jeremiah pointed out this application does not authorize the project, a particular design, or tax increment financing. The City is in no way obligated to approve anything with this current application. Aho questioned the total of the grant they can apply for in terms of monetary value.Jeremiah answered the total grant is for$8.8 million. They have applied for $2,045,000. The largest grant that has been previously awarded was for$2.5 million. This request is very much in keeping with the livable communities' concept. Case reported he and Butcher, along with City staff and the Planning Commission,toured four different community town center areas.He found it amazing as to what can be done for a major center area and this request is a good beginning for this project. Butcher said it was nice to see what other communities have done. MOTION: Case moved, seconded by Butcher,to adopt Resolution No. 2006-93 identifying the need for Livable Communities Demonstration Account funding and authorizing an application for grant funds. Motion carried,4-0. City Council Meeting July 18,2006 Page 8 XL PETITIONS.REQUESTS AND COMMUNICATIONS XII. REPORTS ON ADVISORY BOARDS& COMMISSIONS XIII. APPOINTMENTS XIV. REPORTS OF OFFICERS A. REPORTS OF COUNCILMEMBERS 1. MONEY Magazine Ranking of Eden Prairie—Mayor Tyra-Lukens Tyra-Lukens announced Eden Prairie has been ranked Number 10 on MONEY Magazine's annual list of"America's Best Places to Live". She stated she personally feels Eden Prairie is a fabulous City to live in. They have received other awards but this award means more because it looks at the entire picture and takes a balanced approach. On behalf of the City Council and Staff, Tyra-Lukens expressed her thanks to the entire community in making Eden Prairie a great city. She thanked the schools, businesses, City staff, groups and organizations,elected leaders including those at the State level and all of the residents in the City and all others who have worked with them. Tyra-Lukens said this award says they are doing something right in Eden Prairie. 2. Dog Park—Mayor Tyra-Lukens Tyra-Lukens explained they did dedicate the City's newest dog park this evening. It is located at Staring Lake and is almost six acres in size.Tyra- Lukens expressed her appreciation to Cheryl Luce and Libby Hargrove for their work in getting this dog park opened. She also expressed her appreciation to former Councilmember Jan Mosman who took the dog park issue on. 3. Bearpath Outlot Fence and Trail—Councilmember Case Case said it has been determined the City owns the outlot located by Bearpath but it has not been officially transferred.Case pointed out this now City gives the Ci control of this 40-foot outlot.He indicated there is a g black chain link fence that runs along that outlot is filled with Virginia creeper and serves as a screen.He suggested they ask the developer to keep the fence as is. Case said he also suggests they include in the Developer's Agreement that the developer construct a trail and the City will have complete control over where that trail will be located. It appears the trail can be constructed without the removal of any trees. Case said he is not requesting any action this evening but would ask City Council be allowed to provide input on the placement of the trail. City Council Meeting July 18, 2006 Page 9 4. Prospect Road—Councilmember Case Case asked if it would be possible for Staff to provide the Council with a brief update on the status of Prospect Road. 5. Senior Center—Councilmember Case Case said recently he had the opportunity to attend an event at the Senior Center and it was brought to his attention that some of the windows need to be replaced. Replacement windows had been placed in the budget but were removed because of the 20-year pay back.He asked this item be reviewed by the Conservation Commission or they could look at the window replacements under a 5-7 year pay back.The library room is not usable during the winter months because of the draft.Neal pointed out Staff has been talking to the Conservation Commission about a number of City facilities and they are putting together a list of potential projects. They are also looking at alternative funding to accomplish emergency conservation projects. They will look at including this project in that listing. Case indicated it was also brought to his attention that the Seniors are now required to carry water for quite a distance to water their garden. Case suggested a water faucet be added at the east end and he asked Staff to look into this. Case stated there is a Senior Board and he suggested the City Council meet with them annually or twice a year so they could address any questions and/or concerns the Board might have. 6. Helicopter Flight Path—Councilmember Case Case pointed out while walking along Pioneer Trail he noticed that several helicopters have been flying over the same flight path. There appears to be a Helicopter School at Flying Cloud Airport and he asked if the Flying Cloud Airports Commission could look at this patterned flying to see if it could be varied. 7. Lake Owners' Association—Councilmember Case Case said it was brought to his attention the Lake Owners' Association has expressed concern about water quality.He asked if it would be possible for the Council to have an update on how the City's lakes are this year and if there is an on-going problem. Neal explained Staff is proposing to devote an entire workshop to lakes and storm drainage on the second meeting in August. Case suggested the City Council Meeting July 18, 2006 Page 10 Lake Owners' Association be invited to this meeting so they can be informed as to what is happening with the City's lakes. B. REPORT OF CITY MANAGER C. REPORT OF THE COMMUNITY DEVELOPMENT DIRECTOR D. REPORT OF PARKS AND RECREATION DIRECTOR E. REPORT OF PUBLIC WORKS DIRECTOR 1. Hilltop Road Street and Utility Improvements Contract(Resolution No.2006-94). Dietz reported bids were received on July 6.Four bids were received with Three Rivers Construction Company's bid of$591,483.49 being 25 percent below the estimated construction cost utilized in the feasibility study. MOTION: Aho moved, seconded by Butcher,to award the contract for Hilltop Road street and utility improvements to Three Rivers Construction in the amount of$591,483.39. Motion carried,4-0. F. REPORT OF POLICE CHIEF G. REPORT OF FIRE CHIEF H. REPORT OF CITY ATTORNEY XV. OTHER BUSINES XVI. ADJOURNMENT MOTION: Butcher moved, seconded by Case,to adjourn the meeting.Motion carried, 4-0.The meeting adjourned at 8:05 p.m. CITY COUNCIL AGENDA DATE: SECTION: Consent Calendar August 1, 2006 DEPARTMENT/DIVISION: ITEM DESCRIPTION: ITEM NO.: VII.A. Christy Weigel, Police/ Clerk's License Application List Community Investigations Unit These licenses have been approved by the department heads responsible for the licensed activity. Cigarette& Tobacco Products Holiday Stationstores, Inc. DBA: Holiday Stationstore#386 Amendment to Liquor License 2AM Closing Permit-Renewal Purple Star, Inc DBA: Green Mill of Eden Prairie Temporary Liquor Organization: The Cutting Edge Event:Northstar Ponds 3 on 3 Bantam Tourney Date: August 18-20, 2006 Place:Northstar Ponds, 7901 Fuller Road - 1 - CITY COUNCIL AGENDA DATE: SECTION: Consent Calendar August 1, 2006 DEPARTMENT/DIVISION: ITEM DESCRIPTION: ITEM NO.: VILB. Randy L. Slick Final Plat ApTroval of Eden Bluff Public Works/Engineering Highlands 3r Addition Requested Action Move to: Adopt the resolution approving the final plat of Eden Bluff Highlands 3Ta Addition. Synopsis This proposal is for the plat located in the northeast quadrant of the TH212 and Charlson Road intersection. The plat consists of 9.84 acres to be divided into one lot and one outlot. A 109,000 square-foot office building is proposed on Lot 1. This is a replat of Outlot B, Eden Bluff Highlands. Background Information The preliminary plat was approved by the City Council on June 6, 2006. Second reading of the Rezoning Ordinance and final approval of the Developer's Agreement was completed on July 18,2006. Approval of the final plat is subject to the following conditions: • Receipt of engineering fee in the amount of$1,239.84. • Receipt of street lighting fee in the amount of$219.19. • Satisfaction of bonding requirements for the installation of public improvements. • Execution of Special Assessment Agreement for trunk utility improvements. • The requirements as set forth in the Developer's Agreement. • Prior to release of final plat, Developer shall provide a cross access, private utility and Maintenance Agreement between Lots 1 and 2, Block 2 and between Lots 1 and Outlot A. • Prior to release of the final plat, Developer shall record and provide proof of filing the Development Agreement at the County Recorder and/or Registrar of Titles. • Revision to plat shall include standard drainage and utility easements along Lot 1 and Outlot A property line. Attachments • Resolution • Drawing of final plat CITY OF EDEN PRAIRIE HENNEPIN COUNTY,NIINNESOTA RESOLUTION NO.06- A RESOLUTION APPROVING FINAL PLAT OF EDEN BLUFF HIGHLANDS 3RD ADDITION WHEREAS, the plat of Eden Bluff Highlands P Addition has been submitted in a manner required for platting land under the Eden Prairie Ordinance Code and under Chapter 462 of the Minnesota Statutes and all proceedings have been duly had thereunder,and WHEREAS, said plat is in all respects consistent with the City plan and the regulations and requirements of the laws of the State of Minnesota and ordinances of the City of Eden Prairie. NOW,THEREFORE,BE IT RESOLVED by the Eden Prairie City Council: A. Plat approval request for Eden Bluff Highlands P Addition is approved upon compliance with the recommendation of the City Engineer's report on this plat dated August 1,2006. B. That the City Clerk is hereby directed to supply a certified copy of this resolution to the owners and subdivision of the above named plat. C. That the Mayor and City Manager are hereby authorized to execute the certificate of approval on behalf of the City Council upon compliance with the foregoing provisions. ADOPTED by the Eden Prairie City Council on August 1, 2006. Ron Case,Acting Mayor ATTEST: SEAL Kathleen Porta, City Clerk � P Y c_6e ko O g$$Y k S^�v gg a Y P a `o€ a Fill 3� SstR e FRo UR gg,.. It @t H yyittr O `tz: Zt Z J £ a R y ` E Jl- °a m J O O � �m EB slc 0 sa �E �r O � $ OC � Z O e � O O 2 Vj s Fj cR Q.c c 1 •�+v / V xm•ni+w / ` / I t'� 1 1Q x / ,,p �� ♦a i= M ca c` 1AIR O sae.o+ eo9°�7-3rw 25 00 8 ------ nrLITI�Jiv \ I 1 CITY COUNCIL AGENDA DATE: SECTION: Consent Calendar August 1, 2006 DEPARTMENT/DIVISION: ITEM DESCRIPTION: ITEM NO.: VILC. Eugene A. Dietz Approve second reading of an Public Works Ordinance amending City Code Section 3.05 Requested Action Move to: Approve second reading of an Ordinance amending City Code Section 3.05 regarding discontinuance of municipal utilities for failure to allow meter service and repair/replacement. Synopsis We serve approximately 18,000 utility customers with water and sewer service. For the past four (4)years, staff and contractors have been converting the method of meter reading from a walking route system to a radio read system. There are about 180 customers that have not responded to repeated attempts to allow entry into their homes for the 20-minute conversion process. Staff is not proposing to utilize"shutting off of service"at this time—and would not do so without first advising Council. However, as we reviewed our options with the City Attorney's Office, we discovered this flaw in our Ordinance. The current Ordinance allows shutting off or discontinuing service for violation of City Code relating to the connection, failure to pay and for fraud/misrepresentation. The first reading was held on July 18, 2006. Attachments • Ordinance HENNEPIN COUNTY,MINNESOTA ORDINANCE -2006 AN ORDINANCE OF THE CITY OF EDEN PRAIRIE, MINNESOTA AMENDING CITY CODE SECTION 3.05, SUBD. 3 RELATING TO DISCONTINUANCE OF SERVICE OF MUNICIPAL UTILITIES AND ADOPTING BY REFERENCE CITY CODE CHAPTER 1 AND SECTION 3.99 WHICH AMONG OTHER THINGS,CONTAIN PENALTY PROVISIONS. THE CITY COUNCIL OF THE CITY OF EDEN PRAIRIE, MINNESOTA ORDAINS: Section 1. City Code Section 3.05, Subd. 3 is amended by adding Paragraph D. as follows: D. The owner or occupant of the premises served by the City's municipal water service fails (a)within 10 days after written request by the City to the owner or occupant, to provide a time,within 30 days of the written request,to permit entry into the premises by the City, its employees or contractors, during normal working hours, for the purpose of repairing, replacing, modifying or equipping the premises water meter or the equipment for the reading of the meter, or (b) to permit entry into the premises by the City, its employees or contractors to repair, replace, modify or equip the water meter or the equipment for the reading of the meter at and during the time provided. Section 2. City Code Chapter 1, entitled "General Provisions and Definitions Applicable to Entire City Code including Penalty for Violation" and Sections 3.99 containing penalty provisions are hereby adopted in their entirety by reference although repeated verbatim herein. Section 3. This ordinance shall become effective from and after its passage and publication. FIRST READ at a regular meeting of the City Council of the City of Eden Prairie on the 18th day of July, 2006 and finally read and adopted and ordered published at a regular meeting of the City Council of said City on the 1 st day of August,2006. Ron Case,Acting Mayor ATTEST: SEAL Kathleen Porta, City Clerk PUBLISHED in the Eden Prairie Sun Current on 92006. P:ViomOMORDINANCWhapter Mection 3.060906.doc CITY COUNCIL AGENDA DATE: SECTION: Consent Agenda August 1, 2006 DEPARTMENT/DIVISION: ITEM DESCRIPTION: ITEM NO.: VILD. Jim Richardson Approve the Release of Land from Public Works/Engineering Special Assessment Agreement 91-08 Requested Action Move to: Approve the Release of Land from Special Assessment Agreement 91-08 for Lot 2 through Lot 8, Block 1,Bluffs East 1 Ith Addition. Synopsis In November, 1991,the City of Eden Prairie entered into a special assessment agreement with Creek Knolls, a Minnesota Limited Partnership,regarding the levying of special assessments for sanitary sewer,watermain and other utility and street improvements. Background Information The improvements contemplated by the Agreement have been paid for,therefore,the property should be released from the Special Assessment Agreement. Attachments • Release of Land from Special Assessment Agreement RELEASE OF LAND This Release of Land is executed by the City of Eden Prairie,a Minnesota municipal corporation ("City"),and is dated as of August 1,2006. FACTS 1. A certain Agreement Regarding Special Assessments ("Agreement') dated November 15, 1991, was executed by and between the City and Creek Knolls, a Minnesota Limited Partnership, which Agreement was filed as Document No. 5851807 with the Hennepin County Recorder on December 5, 1991 and Document No. 5862156 with the Hennepin County Recorder on January 7, 1992. 2. Said agreement pertains to the property described as follows: Lot 2 through Lot 8,Block 1, Bluffs East I lth Addition. 3. The improvements contemplated by the Agreement have been paid. THEREFORE,the City of Eden Prairie,a Minnesota municipal corporation,hereby releases the Property described above from all obligations and conditions set forth in the Agreement Regarding Special Assessments dated November 15, 1991,filed as Document No.5851807 with the Hennepin County Recorder on December 5, 1991 and Document No. 5862156 with the Hennepin County Recorder on January 7, 1992. This Release of Land shall not release or discharge the Property from the lien of any special assessments levied by the City pursuant to the Agreement. IN WITNESS WHEREOF,the City of Eden Prairie has executed the foregoing instrument. CITY OF EDEN PRAIRIE A Municipal Corporation BY: BY: Ron Case Scott H.Neal Acting Mayor Its City Manager STATE OF MINNESOTA) )ss HENNEPIN COUNTY ) The foregoing instrument was acknowledged before me this day of 2006, by Nancy Tyra-Lukens and Scott H. Neal, the Mayor and City Manager of the City of Eden Prairie,a municipal corporation under the laws of the State of Minnesota,on behalf of said corporation. Notary Public THIS INSTRUMENT WAS DRAFTED BY: City of Eden Prairie 8080 Mitchell Road Eden Prairie,MN 55344 CITY COUNCIL AGENDA DATE: SECTION: Consent Agenda August 1, 2006 DEPARTMENT/DIVISION: ITEM DESCRIPTION: ITEM NO.: VILE. Jim Richardson Approve Partial Release of Land from Public Works/Engineering Special Assessment Agreement and First Amendment to Special Assessment Agreement Requested Action Move to: Approve the Partial Release of Land from Special Assessment Agreement and First Amendment to Special Assessment Agreement for Lot 14,Block 6,Hennepin Village,Hennepin County, Minnesota. Synopsis In June, 2000,the City of Eden Prairie entered into a special assessment agreement with Lynn L Charlson and in April 2002, entered into a first amendment to the special assessment agreement with Lynn L Charlson regarding the levying of special assessments for improvements as described in the"Charlson Area Improvement Feasibility Study". Background Information The improvements contemplated by the Agreement have been paid for,therefore,the property should be released from the Special Assessment Agreement. Attachments • Release of Land from Special Assessment Agreement PARTIAL RELEASE OF LAND This Partial Release of Land is executed by the City of Eden Prairie, a Minnesota municipal corporation("City"),and is dated as of August 1,2006. FACTS 1. A certain Agreement Regarding Special Assessments ("Agreement') dated June 20, 2000, was executed by and between the City and Lynn L. Charlson,which Agreement was filed as Document No. 3290756 with the Registrar of Titles and a certain First Amendment to Agreement Regarding Special Assessments ("Amendment to Agreement') dated April 16, 2002, was executed by and between the City and Lynn L. Charlson, which Agreement was filed as Document No.3536002 with the Registrar of Titles 2. The property affected by this partial release is described as follows: Lot 14, Block 6, Hennepin Village,Hennepin County,Minnesota. NOW,THEREFORE,the City of Eden Prairie, a Minnesota municipal corporation,hereby releases the Property from the obligations and conditions set forth in the Agreement Regarding Special Assessments dated June 20,2000,filed as Document No.3290756 with the Registrar of Titles and the First Amendment to Agreement Regarding Special Assessments dated April 16, 2002,filed as Document No. 3536002 with the Registrar of Titles This Partial Release of Land shall not release or discharge the Property from the lien of any special assessments levied by the City pursuant to the Agreement. IN WITNESS WHEREOF,the City of Eden Prairie has executed the foregoing instrument. CITY OF EDEN PRAIRIE A Municipal Corporation BY: BY: Ron Case Scott H.Neal Acting Mayor Its City Manager STATE OF MINNESOTA) )ss HENNEPIN COUNTY ) The foregoing instrument was acknowledged before me this day of 2006, by Nancy Tyra-Lukens and Scott H. Neal, the Mayor and City Manager of the City of Eden Prairie,a municipal corporation under the laws of the State of Minnesota,on behalf of said corporation. Notary Public THIS INSTRUMENT WAS DRAFTED BY: City of Eden Prairie 8080 Mitchell Road Eden Prairie,MN 55344 CITY COUNCIL AGENDA DATE: SECTION: Consent Calendar August 1, 2006 DEPARTMENT/DIVISION: ITEM DESCRIPTION: ITEM NO.: VII.F. Fire Selling Engine 22 in exchange for tuition credits Requested Action Move to: Approve the sale of Engine 22 in the amount of$25,000 to Hennepin Technical College(HTC). Eden Prairie Fire will receive_$25,000 in tuition credits as payments Synopsis By selling the truck to HTC in exchange for tuition credits both parties meet their needs to complete the sale. Engine 22 is for sale as the result of a routine process of vehicle replacement. HTC wishes to purchase the truck for use in their fire training classes at the Eden Prairie Campus. Attachment Sale agreement STATE OF MINNESOTA MINNESOTA STATE COLLEGES AND UNI VERSITIES HENNEPIN TECHNICAL COLLEGE CUSTOMIZED TRAINING CONTRACT Contract#07023 THIS CONTRACT is between Hennepin Technical College(hereinafter"COLLEGE")located at 13100 College View Drive,Eden Prairie,Minnesota 55347 acting by virtue of its delegated authority from the Board of Trustees of the Minnesota State Colleges and Universities, and City of Eden Prairie,Attn: George Esbensen (hereinafter"CLIENT") located at 14800 Scenic Heights Rd,Eden Prairie,MN 55344; I. COLLEGE'S DUTIES. The COLLEGE agrees to provide the following: Title of Instruction: Fire Training Classes/Services as Requested a. Contract includes all Fire Protection credit and non-credit courses,promotional test development and delivery,ICS test development and delivery,and all mobile training simulation props offerered by Hennepin Technical Program . Date(s)of Instruction: to be mutually agreed upon between August 1, 2006 and no later than June 30,2008 Name of Instructor: Staff Location: to be mutually agreed upon II. CLIENT'S DUTIES. The CLIENT agrees to provide the following: a. roster of participants for each class b. required text books c. make all contacts for training and services through the college and will not employ the presenter/instructor directly for additional sessions. III. SITE OF INSTRUCTION. CLIENT shall make all of the arrangements, including any payment,for the location to be used for the training. IV. CONSIDERATION AND TERMS OF PAYMENT. A. Cost: No charge up to a total value of twenty-five thousand dollars($25,000.00).Does not include the cost of any required text books or the one time twenty dollar($20.00)HTC application fee for each new student. CLIENT will donate a L9000 General Fire Engine-1250 GPM Waterous with the FoamPro 2000 to all discharges. Lots of cabinet space and 7000KW gas powered mounted generator values at $45,000.00 to COLLEGE'S Fire Protection Program.A standard COLLEGE donation form will be used to document the donation. Notwithstanding the thirty(30)day notice period established in paragraph VII, in the event that the CLIENT desires to cancel or reschedule the instruction due to low enrollment,CLIENT shall give at least five(5)days notice in writing to the COLLEGE'S authorized agent to cancel or reschedule. If the 1 instruction is cancelled as provided herein,the COLLEGE shall be entitled to payment calculated provided herein a according to paragraph VII.If the instruction is rescheduled as p ,payment ment shall be according to this paragraph IV. V. AUTHORIZED REPRESENTATIVES.All communications regarding the terms of this contract shall be submitted to the following persons: A. TRAINING AND BUSINESS DEVELOPMENT DIRECTOR: Name: Jon Olson Phone:952-995-1312 Fax: 952-995-1331 E-Mail: Jon.Olson@hennepintech.edu PROJECT MANAGER/TRAINING DEVELOPMENT DIRECTOR: Name: Dave Klocek Phone: 952-995-1315 Fax: 952-995-1331 E-Mail: Dave.Klocek@hennepintech.edu B. CLIENT CONTACT PERSONBILLING ADDRESS: Name: George Esbensen Title: Fire Chief Address: 14800 Scenic Heights Rd,Eden Prairie,MN 55344 Phone: 952-949-8336 Fax: E-Mail: gesbensen@edenprairie.org VI. TERM OF CONTRACT. A. Effective Date: July 17, 2006 B. End Date: June 30,2007, or until all obligations set forth in this contract have been satisfactorily fulfilled,whichever occurs first. VII. CANCELLATION. This contract cannot be cancelled upon receipt of donation. VIII. ASSIGNMENT.Neither the CLIENT nor the COLLEGE shall assign or transfer any rights or obligations under this contract without the prior written approval of the other party. IX. LIABILITY.COLLEGE and the CLIENT agree that each will be responsible for its own acts and the results thereof to the extent authorized by law and shall not be responsible for the acts of the other party and the results thereof. The liability of the COLLEGE shall be governed by the provisions of the Minnesota Tort Claims Act,Minnesota Statutes Section 3.732 and 3.736 et seq.,and other applicable law.The liability of the CLIENT is governed by Minn. Stat. Chapter 466. X. AMENDMENTS. Any amendment or supplement to this contract shall be in writing and shall be executed by the same parties who executed the original contract or their successors in office. XI. GOVERNMENT DATA PRACTICES ACT.Both the COLLEGE and the CLIENT must comply with the Minnesota Government Data Practices Act,Minnesota Statutes Chapter 13, as it applies to all data provided by either party in accordance with this contract, and as it applies to all data,created,collected,received, stored,used,maintained, or disseminated by either party in accordance with this contract.The civil remedies of Minnesota Statutes Section 13.08 apply to the release of the data referred to in this Article by either the CLIENT or the COLLEGE. In the event that either party receives a request to release the data referred to in this Article,the party must immediately notify the other and that party will give the instructions concerning the release of the data to the requesting party before the data is released. 2 XIII. RIGHTS IN ORIGINAL MATERIALS. The COLLEGE shall own all rights,including all intellectual property rights, in all original materials, including any curriculum materials, inventions,reports,studies, designs,drawings, specifications, notes, documents, software and documentation,computer based training modules,electronically or magnetically recorded materials,and other work in whatever form,developed by the COLLEGE and its employees individually or jointly with others or any subCLIENT in the performance of its obligations under this contract.This provision shall not apply to the following materials:N/A XIV. JURSIDICTION AND VENUE. This contract, and amendments and supplements thereto,shall be governed by the laws of the State of Minnesota. Venue for all legal proceedings arising out of this contract,or breach thereof, shall be in the state or federal court with competent jurisdiction in Ramsey County,Minnesota. XV. OTHER PROVISIONS. (Attach additional page(s) if necessary): A. The books, records, documents, and accounting procedures and practices of the parties relevant to this Contract are subject to examination by the Client and either Legislative Auditor or the State Auditor for a period of six years after the effective date of this Contract pursuant to Minn. Stat. Section 16C.05, subd. 5. B. College agrees to accept the Fire Engine in an"AS-IS" condition with no warranties, both express and implied, or guarantees by the Client regarding the condition or further use of the Fire Engine. On delivery, the College will assume all responsibility for maintaining, repairing and operating the Fire Engine. The AS-IS condition includes the wear and tear of the Client's previous use of the Fire Engine. IN WITNESS WHEREOF,the parties have caused this contract to be duly executed intending to be bound thereby. APPROVED: 1. HENNEPIN TECHNICAL COLLEGE By: (Signature of person authorized to sign on behalf of COLLEGE) Title: Dean of Customized Training Services Date: Z CITY OF EDEN PRAIRIE CLIENT certifies that the appropriate person(s) have executed this contract on behalf of the CLIENT as required by applicable articles,by-laws,resolutions or ordinances. By: By: Title: Mayor Title: City Manaaer Date: Date: 3 CITY COUNCIL AGENDA DATE: August 1, 1006 SECTION: Consent Calendar DEPARTMENT/DIVISION: ITEM DESCRIPTION: ITEM NO.: VII.G. Office of the City Manager, Consent to transfer of lease by T-mobile Scott Neal, City Manager Requested Action Move to: Consent to transfer of lease (Site#A1P0008A)to T-Mobile Central LLC. Synopsis The City and APT Minneapolis, Inc. entered into a Lease dated Feb. 1, 1999, for the premises located at 12100 Sunnybrook Rd. T-Mobile seeks the assignment to T-Mobile Central LLC. The 1999 Agreement with the City(AIP008A) allows assignment only with the written consent of the City. The agreement further states that such consent"will not be unreasonably delayed or withheld." T-Mobile states that the assignment in this instance is to another T-Mobile subsidiary so that T-Mobile may reduce its number of subsidiaries by combination of subsidiaries. The City attorney recommends that unless the City is aware of matters that would give rise to a reasonable denial of this request,the Council approve the assignment. Attachments Letter from T-Mobile, dated December 12, 1005 Letter from T-Mobile (with signature block), dated May 22, 2006 W11212006 14:04 FAX 425 378 5020 T-NUBILE IM002 In JU Z a T E .l0 e- U3 May 22,2006 SENT BY CERTIlFIED MAIL. City of Ed=Prairie City Manager 8W MitchcIl Rd. Eden Prairie,MN 55344 Re: Lease(Site#A1P0008A)dated on or about 2/1/1999 betwocn City of Eden Prairie and APT Minneapolis Inc.("Lease")for the Premises located at or about 12100 Sunnybrook lid.Eden Prairie,MN 55344 and transfer of the Lease to T-Mobile Central LLC Dear Landlord: T-Mobik sent you a notice several weeks ago to inform you that T-Mobile is simplifying its corporate strut tue by combining subsidiaries in alder to reduce the total number of T-Mobik subsidiaries. As part of this process, your Lease will be conveyed by an inb=W transfer to another T-Mobik subsidiary named above. This letter is a follow-up to ask that you please confirm your torment to the internal transfer as it relates to the Lease,by signing this letter where indicated below and returning it in the enclosed self- addressed envelope. If you have any questions about this request,please e-mail no at enWchange@t mobile.com. If we do not bear from you to the contrary,we will assume that the foregoing is acceptable. Sincerely, /0 0- Cat ► Ac knowledged and consented: Debby Andr esm and ofLease Complia D of Eden Prairie: inxtor ace Information Management BY' Certified Tracking Nrmtber: Authorized Signatory 7005 1820 0004 4736 515 print Name: Dame. 4k7/12/2006 14:04 FAX 425 378 5020 T-1tOBIl.I? IQ 003 12/12M Sf3N'T klY CERT1FkED MAII. City of FAImPniric Attu:City Magv tom t tchen Road Ada.:City MMMW Eden Rwrwk 10 SSW Re: Lease(Sita#Al P0008A)dated an or about 2f l/1999 between City of Eden PraideAnn:City Manager and APT Minneapolis.Inc.("Leads')and assignment of the Luse to T-Mobile Central LLC Dear Landlord: T Mobile is simplifying its cogporate struct uc by cote b"subsidiaries m order to reduce the total number of T-Mobile subsidiaries. As part of this process,your Lease will be transk red by an internal asagninent to another T Mobile subsidiary named above,effective January 1,2006. This assignment will not cbange or affect your relationship with T-Mobile incla ding the contact information you currently use,the T-Mobile persons who administer your leads or the rent payment you receive from T-Mobile. T-Mobile is reviewing and assessing lease requirements for all of the leases involved in this reorganization. if your Lease requires us to take further action regarding our internal assignment,we will do so in the near future_ N you have any questions,please e4=0 ns at enpgychange@t-nrobile.com. Sincerely, Al Short Supervisor Lease and Information Managment Certified Tracking Nua*a: 7005 1820 0004 4641 442 CITY COUNCIL AGENDA DATE: SECTION: Public Hearing August 1, 2006 DEPARTMENT/DIVISION: ITEM DESCRIPTION: ITEM NO. VIII.A. Community Development: Establish TIF Redevelopment District- Janet Jeremiah/David Lindahl Superior Office Center Project(former Physical Electronics site) Requested Action: Move to: • Close the City Council Public Hearing: and • Adopt a Resolution relating to Redevelopment Project Area No. 6 and Tax Increment Financing (Redevelopment) District No. 20; and approving a Project Plan and Tax Increment Financing Plan therefore Synopsis: The purpose of establishing a Redevelopment District is to help defray costs associated with the redevelopment of the former Physical Electronics site in the Golden Triangle Area. If the TIF Plan is approved, a total of$728,204 in pay-as-you-go TIF would be provided to United Properties over a fifteen year term. Twenty percent of the total increment expected to be generated, or approximately $400,000,will be pooled by the City and used to help pay for future road improvements in the GTA. Background: United Properties purchased the 15-acre former Physical Electronics headquarters site in June 2003. At the time of the acquisition the 200,000 square foot building was largely vacant due to a significant downsizing at Physical Electronics. United Properties purchased the building with intentions of leasing it or possibly redeveloping the site but were unable to secure tenants for the building, so have instead decided to redevelop a 10-acre portion of the site into a new 90,000 square foot office building called Superior Tech Center. The remaining 5 acres and a portion of the existing building were sold to Mount Properties for a new Foss swim club. The remaining 137,000 square feet of building was razed and United Properties is asking the City to consider providing Tax Increment Financing to assist in paying forthe demolition costs. An inspection of the existing building was completed by LHB September 28, 2005. The TIF Plan calls for a fifteen year Pay-As-You-Go Redevelopment District with up to 80% of the increment or no more than$728,204 provided to offset qualified costs (demolition) and the balance will be pooled by the City to help pay for future transportation improvements in the Golden Triangle. A similar pooling arrangement was approved by the City Council for the TIF district created for the Bluffs at Nine Mile Creek apartment project located on Flying Cloud Drive in the GTA in 2002. The building was inspected by the architectural firm of LHB Inc. and was found to be structurally substandard and qualified as a Redevelopment District. Springsted,the City's financial advisor,was retained by the City to analyze the redevelopment pro-forma to verify that financial gaps do indeed exists due to the demolition and other redevelopment related costs. The attached memo from Springsted summarizes the analysis and suggests that a subsidy is needed to achieve the desired redevelopment results. The attached development agreement details the terms of the TIF proposal and includes two key terms that were negotiated by staff: 1. When the project is 95% leased or in 18 months from time of completion the project will be reevaluated(at the developers cost)to determine if it is leased at higher rents then projected in the pro-forma. If the rents are high enough to negate the need for public assistance,the developer/owner is required to reimburse the City for all TIF received to date. 2. If the developer/owner sells the project anytime prior within the term of the TIF district,they are required to reimburse the City for all TIF received to date. Attachments: Resolution TIF Plan Development Agreement Springsted Memos Redevelopment Plan United Properties Letter dated June 29, 2006 CITY OF EDEN PRAIRIE HENNEPIN COUNTY,MINNESOTA RESOLUTION NO.2006- A RESOLUTION RELATING TO REDEVELOPMENT PROJECT AREA NO. 6 AND TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO.20; APPROVING A PROJECT PLAN AND TAX INCREMENT FINANCING PLAN THEREFOR BE IT RESOLVED by the City Council (the"Council") of the City of Eden Prairie, Minnesota(the "City"), as follows: Section 1. Recitals. 1.01. The Housing and Redevelopment Authority in and for the City of Eden Prairie (the "Authority"),pursuant to Minnesota Statutes, Sections 469.001 to 469.047, all inclusive, as amended, has established Redevelopment Project Area No. 6 and has adopted a Project Plan(the "Project Plan")therefor; 1.02. The Authority, pursuant to Minnesota Statutes, Sections 469.174 to 469.1799, all inclusive, as amended, has established Tax Increment Financing District No. 20 (the "TIF District") and has adopted a Tax Increment Financing Plan(the"TIF Plan") (the Project Plan and TIF Plans are referred to collectively herein as the Plans); 1.03. The Plans are now before this Council for approval. The TIF Plan is the proposed method for financing the public redevelopment costs of certain of the redevelopment activities to be undertaken pursuant to the Project Plan. The proposed Tax Increment Financing (Redevelopment) District No. 20 (the "District") comprises a single tax parcel within Redevelopment Project Area No. 6 as described in the TIF Plan. 1.04. Members of the Board of County Commissioners of Hennepin County(the "County") and of the Board of Education of Independent School District No. 272 (the"School District")have been given an opportunity to meet with the Authority and the City and comment on the TIF Plan. Pursuant to Minnesota Statutes, Section 469.175, subdivision 3, this Council on August 1, 2006, conducted a public hearing on the desirability of approving the Plans. Notice of the public hearing was duly published as required by law in the Eden Prairie Sun Current,the official newspaper of the City, on July 20, 2006. The City has received verbal comments on the TIF Plan from the School District and written comments on the TIF Plan from the County after providing the School District and County boards with information on the fiscal and economic implications of the TIF Plan not less than 30 days before the date of the public hearing. Section 2. Approval of Project Plan. On the basis of the proposed Project Plan adopted by the Authority and the information elicited at the public hearing referred to in Section 1.04, it is hereby found, determined and declared that the development activities proposed by the Project Plan are consistent with the City's redevelopment and development goals, which are also set forth in the City's comprehensive plan, and it is in the best interests of the City to approve the Project Plan. Therefore,this Council hereby approves the Project Plan. Section 3. Approval of TIF Plan. On the basis of the TIF Plan and the information elicited at the public hearing referred to in Section 1.04, it is hereby found, determined and declared: 3.01. The TIF Plan provides the means to finance certain public redevelopment costs of the Redevelopment Project that benefits the City. The TIF Plan contains a statement of objectives for the Redevelopment Project that benefits the TIF District, a statement as to the development program for the TIF District and a statement of the property within the Redevelopment Project which the City intends to acquire. The TIF Plan also estimates the public redevelopment costs of the Redevelopment Project,the amount of bonded indebtedness to be incurred,the sources of revenues to finance or otherwise pay public costs of the TIF District,the most recent net tax capacity of taxable real property within the TIF District,the estimated captured net tax capacity of the TIF District at completion, and the duration of the TIF District. The TIF Plan also describes and identifies the redevelopment activities to be undertaken or expected to be undertaken in the TIF District. The TIF Plan further contains alternative estimates of the impact of the proposed tax increment financing on the net tax capacities of all taxing jurisdictions in which the TIF District is located. All the captured tax capacity is necessary for the objectives of the TIF District. 3.02. This Council hereby finds that the TIF District consists of a"project"as defined in Minnesota Statutes, Section 469.174, subdivision 8, and is a proper tax increment financing district within the meaning of Section 469.174, subdivision 10. 3.03. This Council hereby finds that the private development proposed, in the opinion of this Council,would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and,therefore,the use of tax increment financing is deemed necessary since private developers could not economically develop the project without the proposed assistance. 3.04. This Council hereby finds that the TIF Plan conforms to the general plan for the development of the City as a whole. The development is compatible with the City's zoning ordinances and other related regulations and encourages efficient use of existing infrastructure as set forth in the City's Land Use Plan. 3.05. This Council hereby finds that the TIF Plan will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development of the TIF District by private enterprise. The development activities contemplated in the Project Plan would provide an increase in employment opportunities in the City, enhance the tax base of the City and improve the general economy of the City and the State of Minnesota 3.06. Upon review of the TIF Plan,the information elicited at the public hearing and on the basis of the findings in Sections 3.01 to 3.05,this Council hereby approves the establishment -2- of the TIF District as a tax increment financing district in the City,to be denominated"Tax Increment Financing(Redevelopment)District No. 20"and the TIF Plan therefor. Adopted by the City Council this I St day of August,2006. Ron Case,Acting Mayor ATTEST: Kathleen A. Porta, City Clerk -3- Housing and Redevelopment Authority in and for the City of Eden Prairie City of Eden Prairie, Minnesota Tax Increment Financing Plan for Tax Increment Financing (Redevelopment) District No. 20 Within Redevelopment Project Area No. 6 (Superior Office Center Project) Dated: July 26, 2006 (DRAFT) Approved: Prepared by: SPRINGSTED INCORPORATED 380 Jackson Street,Suite 300 St. Paul, MN 55101-2887 (651)223-3000 WWW.SPRINGSTED.COM TABLE OF CONTENTS Section Pa e s A. Definitions.....................................................................................................................................................................1 B. Statutory Authorization.................................................................................................................................................1 C. Statement of Need and Public Purpose......................................................................................................................1 D. Statement of Objectives...............................................................................................................................................1 E. Designation of Tax Increment Financing District as a Redevelopment District........................................................1 F. Duration of the TIF District...........................................................................................................................................3 G. Property to be Included in the TIF District...................................................................................................................3 H. Property to be Acquired in the TIF District..................................................................................................................3 I. Specific Development Expected to Occur Within the TIF District..............................................................................3 J. Findings and Need for Tax Increment Financing.......................................................................................................4 K. Estimated Public Costs................................................................................................................................................6 L. Estimated Sources of Revenue...................................................................................................................................7 M. Estimated Amount of Bonded Indebtedness..............................................................................................................7 N. Original Net Tax Capacity............................................................................................................................................7 0. Original Tax Capacity Rate..........................................................................................................................................8 P. Projected Retained Captured Net Tax Capacity and Projected Tax Increment.......................................................8 Q. Use of Tax Increment...................................................................................................................................................9 R. Excess Tax Increment...............................................................................................................................................10 S. Tax Increment Pooling and the Five Year Rule........................................................................................................10 T. Limitation on Administrative Expenses.....................................................................................................................11 U. Limitation on Property Not Subject to Improvements-Four Year Rule..................................................................11 V. Estimated Impact on Other Taxing Jurisdictions......................................................................................................11 W. Prior Planned Improvements.....................................................................................................................................12 X. Development Agreements.........................................................................................................................................12 Y. Assessment Agreements...........................................................................................................................................13 Z. Modifications of the Tax Increment Financing Plan..................................................................................................13 AA. Administration of the Tax Increment Financing Plan................................................................................................13 AB. Filing TIF Plan,Financial Reporting and Disclosure Requirements........................................................................14 Map of the Tax Increment Financing District................................................................................................EXHIBIT I AssumptionsReport......................................................................................................................................EXHIBIT II Projected Tax Increment Report............................................................................... ...............................EXHIBIT III Estimated Impact on Other Taxing Jurisdictions Report............................................................................EXHIBIT IV Market Value Analysis Report......................................................................................................................EXHIBIT V Projected Pay-As-You-Go Note Report......................................................................................................EXHIBIT VI Housing and Redevelopment Authority in and for the City of Eden Prairie, Minnesota Section A Definitions The terms defined in this section have the meanings given herein,unless the context in which they are used indicates a different meaning: "Authori "means the Housing and Redevelopment Authority in and for the City of Eden Prairie. "G�t ""means the City of Eden Prairie,Minnesota;also referred to as a"Municipality". "Cit ry Council"means the City Council of the City. "Coun "means Hennepin County,Minnesota. "Redevelopment Project Area" means Redevelopment Project Area No.6 in the City, which is described in the corresponding Redevelopment Plan. "Redevelopment Plan"means the Redevelopment Plan for the Redevelopment Project Area. "Project Area"means the geographic area of the Redevelopment Project Area. "School District"means Independent School District No.272,Minnesota. "State"means the State of Minnesota. "TIF Act"means Minnesota Statutes,Sections 469.174 through 469.1799,all inclusive. "TIF District"means Tax Increment Financing(Redevelopment)District No.20. `TIF Plan"means the tax increment financing plan for the TIF District(this document). Section B Statutory Authorization See Section B of the Redevelopment Plan for the Redevelopment Project Area. Section C Statement of Need and Public Purpose See Section C of the Redevelopment Plan for the Redevelopment Project Area. Section D Statement of Objectives See Section D of the Redevelopment Plan for the Redevelopment Project Area. Section E Designation of Tax Increment Financing District as a Redevelopment District Redevelopment districts are a type of tax increment financing district in which one or more of the following conditions exists and is reasonably distributed throughout the district: (1) parcels comprising at least 70%of the area of the district are occupied by buildings,streets, utilities, paved or gravel parking lots, or other similar structures and more than 50% of the buildings, not including SPRINGSTED Page 1 Housing and Redevelopment Authority in and for the City of Eden Prairie, Minnesota outbuildings, are structurally substandard requiring substantial renovation or clearance. A parcel is deemed "occupied" if at least 15% of the area of the parcel contains buildings, streets, utilities, paved or gravel parking lots;or other similar structures. (2) the property consists of vacant,unused,underused, inappropriately used,or infrequently used railyards, rail storage facilities,or excessive or vacated railroad right-of-ways;or (3) tank facilities, or property whose immediately previous use was for tank facilities, as defined in section 115C.02,subdivision 15,if the tank facilities: (i) have or had a capacity of more than 1,000,000 gallons; (ii) are located adjacent to rail facilities;and (iii) have been removed or are unused,underused,inappropriately used,or infrequently used. For districts consisting of two more noncontiguous areas, each area must individually qualify under the provisions listed above,as well as the entire area must also qualify as a whole. The TIF District qualifies as a redevelopment district in that it meets all of the criteria listed in (1) above. LHB was hired in 2005 to inspect and evaluate the property within proposed TIF District No.20 to determine qualification as a redevelopment district. A report of inspection procedures and results for determining qualifications of a tax increment financing district as a redevelopment district dated September 28, 2005 was prepared. This report and additional supporting facts and documentation will be retained by the Authority for the life of the TIF District and are available to the public upon request. "Structurally substandard" is defined as buildings containing defects or deficiencies in structural elements, essential utilities and facilities, light and ventilation, fire protection (including egress), layout and condition of interior partitions, or similar factors. Generally, a building is not structurally substandard if it is in compliance with the building code applicable to a new building,or could be modified to satisfy the existing code at a cost of less than 15%of the cost of constructing a new structure of the same size and type. A city may not find that a building is structurally substandard without an interior inspection, unless it can not gain access to the property and there exists evidence which supports the structurally substandard finding. Such evidence includes recent fire or police inspections, on-site property tax appraisals or housing inspections,exterior evidence of deterioration, or other similar reliable evidence. Written documentation of the findings and reasons why an interior inspection was not conducted must be made and retained. A parcel is deemed to be occupied by a structurally substandard building if the following conditions are met: (1) the parcel was occupied by a substandard building within three years of the filing of the request for certification of the parcel as part of the district; (2) the demolition or removal of the substandard building was performed by a developer under a development agreement with the authority,approved in conjunction with the TIF Plan dated August 1,2006, (3) the authority found by resolution [Re'Soluttp f ] before such demolition or removal occurred that the building was structurally substandard and that the authority intended to include the parcel in the TIF district,and (4) the authority notifies the county auditor that the original tax capacity of the parcel must be adjusted upon filing the request for certification of the tax capacity of the parcel as part of a district. In the case of(4)above,the County Auditor shall certify the original net tax capacity of the parcel to be the greater of (a)the current tax capacity of the parcel, or (b)a computed tax capacity of the parcel using the estimated market value of the parcel for the year in which the demolition or removal occurred,and the appropriate classification rate(s) for the current year. SPRINGSTED Page 2 Housing and Redevelopment Authority in and for the City of Eden Prairie, Minnesota At least 90 percent of the tax increment from a redevelopment district must be used to finance the cost of correcting conditions that allow designation as a redevelopment district. These costs include, but are not limited to, acquiring properties containing structurally substandard buildings or improvements or hazardous substances, pollution, or contaminants, acquiring adjacent parcels necessary to provide a site of sufficient size to permit development, demolition and rehabilitation of structures, clearing of land, removal of hazardous substances or remediation necessary to develop the land, and installation of utilities, roads, sidewalks, and parking facilities for the site. The allocated administrative expenses of the Authority may be included in the qualifying costs. Section F Duration of the TIF District Redevelopment districts may remain in existence 25 years from the date of receipt by the Authority of the first tax increment. Modifications of this plan(see Section Z)shall not extend these limitations. The Authority reserves the right to allow the TIF District to remain in existence the maximum duration allowed by law (projected to be through the year 2033), but anticipates that the TIF District will be decertified prior to that time(see Section P)to coincide with the City's current TIF policy[date I of 15 years. All tax increments from taxes payable in the year the TIF District is decertified shall be paid to the Authority. Section G Property to be Included in the TIF District The TIF District is an approximate 10.36-acre area of land located within the Project Area. A map showing the location of the TIF District is shown in Exhibit I. The boundaries and area encompassed by the TIF District are described below: Parcel ID Number Legal Description 01-116-22-13-0037 Lot 1, Block 1. Superior Office 6509 Flying Cloud Dr. Center. Eden Prairie,MN The parcel ID number and legal description listed above reflects the new ID for the portion of the property that will be included in the TIF District. The original property was 15.42 acres and had a parcel ID of 01-116-22-13-0034. A portion of the original property was sold and the entire property replatted to become two parcels, one of which is included in the district and listed above. The area encompassed by the TIF District shall also include all street or utility right-of-ways located upon or adjacent to the property described above. Section H Property to be Acquired in the TIF District The Authority may acquire and sell any or all of the property located within the TIF District; however does not anticipate acquiring property at this time. Section I Specific Development Expected to Occur Within the TIF District The proposed project includes the redevelopment of a portion of the former Physical Electronics building in the City of Eden Prairie. The redevelopment project includes demolition, including asbestos abatement, of an existing building and construction of a new one-story office building of approximately 91,000 square feet. The existing building has been inspected and found to be substandard by resolution in 2005 jR*Ip*fdd . The Authority anticipates using tax increment to finance a portion of the extraordinary site improvement, demolition and asbestos abatement costs, and any related administrative costs. The Authority anticipates reserving 20%of the annual increment for pooling for SPRINGSTED Page 3 Housing and Redevelopment Authority in and for the City of Eden Prairie, Minnesota affordable housing and/or transportation needs within the project area. The remaining 80%of annual increment will be available for reimbursement to the developer of eligible tax increment costs. The proposed project is expected to be fully constructed in 2007 and be 100%assessed and on the tax rolls as of January 2,2008 for taxes payable in 2009. At the time this document was prepared there were no signed construction contracts with regards to the above described development. Section J Findings and Need for Tax Increment Financing In establishing the TIF District,the City makes the following findings: (1) The TIF District qualifies as a redevelopment district; The City of Eden Prairie hired LHB to inspect and evaluate property within the proposed Tax Increment Financing District No. 20 to be established by the Authority. The property is located at 6509 Flying Cloud Drive. The site consisted of an interconnected building "complex"originally built in 1974 with a major addition in 1978. The building consisted of multiple occupancy types for a single tenant including office, warehouse, manufacturing, assembly and athletic facilities. The purpose of the evaluation was to determine if the proposed district met the statutory requirements for coverage and if this building complex met the qualifications required for a Redevelopment District. The final report prepared by LHB for the City,and kept on file in the City offices for public inspection, contains the details of the findings summarized below regarding the substandard qualifications: • parcels consisting of 100 percent of the area of the proposed TIF District were occupied,exceeding the 70 percent coverage test; • 100 percent of the buildings in the proposed District contained code deficiencies exceeding the 15 percent threshold. A complete Building Code and Condition Report was completed for the one building in the District; • 100 percent of the buildings are structurally substandard to a degree requiring substantial renovation or clearance, because of defects in structural elements or a combination of deficiencies in essential utilities and facilities, light and ventilation, fire protection including adequate egress, layout and condition of interior partitions, or similar factors which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance, exceeding the more than 50 percent substandard test;and • the substandard building is reasonably distributed throughout the geographic area of the proposed TIF District. (2) The proposed development, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the district permitted by the TIF Plan. Factual basis: Proposed development not expected to occur.• SPRINGSTED Page 4 Housing and Redevelopment Authority in and for the City of Eden Prairie, Minnesota The proposed development consists of the construction of an approximate 91,000 square foot office building in the City of Eden Prairie on the site that housed the former Physical Electronics building. The structure was found to be substandard by the Authority by resolution in 2005 after a detailed inspection and evaluation by LHB with planned demolition shortly thereafter. The developer has provided detailed information to the City demonstrating that the redevelopment of this site is not financially feasible without the assistance provided in this TIF Plan,based on the extraordinary costs associated with redevelopment of the site including site improvements,demolition,and asbestos abatement costs. No higher market value expected" The unique characteristics of the land within TIF District No. 20 require additional redevelopment expenditures related to site preparation,grading, and landscaping. In order to commence building the new structure,the site required demolition of the existing structure, site improvements, and asbestos abatement, and various other redevelopment activities. The financial assistance provided under this TIF Plan will help offset the costs of these corrections. Given the unique nature of this property, there is no reasonable expectation of any development occurring that would generate as much market value increase as is estimated to be generated by the proposed development. To summarize the basis for the City's findings regarding alternative market value, in accordance with Minnesota Statutes,Section 469.175,Subd.3(d),the City makes the following determinations: a. The City's estimate of the amount by which the market value of the site will increase without the use of tax increment financing is$3,112,819 (current land value of$1,998,000 with 3%annual market value inflator applied for 15 years to coincide with term of the district). b. If the proposed development to be assisted with tax increment occurs in the District,the total increase in market value would be approximately$12,160,768, including the value of the building (See Exhibit II). C. The present value of tax increments from the District for the maximum duration of the district permitted by the TIF Plan is estimated to be$1,161,369(See Exhibit V). d. Even if some development other than the proposed development were to occur,the Council finds that no alternative would occur that would produce a market value increase greater than $10,999,399(the amount in clause b less the amount in clause c)without tax increment assistance. A comparative analysis of estimated market values both with and without establishment of the TIF District and the use of tax increments assumes no development of this type and nature will occur on the site due to the condition of the existing building (i.e. vacant, obsolescent structure requiring asbestos removal and high cost upgrades). We assume the estimated market value without creation of the district would only increase at most by an incremental inflationary amount. The increase in estimated market value of the proposed development (less the indicated subtractions) exceeds the estimated market value of the site absent the establishment of the TIF District and the use of tax increments. (3) The TIF Plan will afford maximum opportunity, consistent with the sound needs of the City as a whole,for development of the Project Area by private enterprise. Factual basis: The proposed development is the construction of a commercial building with approximately 91,000 square feet of office space,in the Project Area that is expected to create substantial new tax base for the City and SPRINGSTED Page 5 Housing and Redevelopment Authority in and for the City of Eden Prairie, Minnesota the state, as well as expected future private development. The development clearly meets the City's redevelopment objectives contained in Section D of the Redevelopment Plan. (4) The TIF Plan conforms to general plans for development of the City as a whole. Factual basis: The City Planning Commission has determined that the development proposed in the TIF Plan conforms to the City comprehensive plan. (5) The Authority elects the method of tax increment computation set forth in Minnesota Statutes, Section 469.177,Subdivision 3(b)(see method(b)in Section P). Section K Estimated Public Costs The estimated public costs of the TIF District are listed below. Such costs are eligible for reimbursement from tax increments of the TIF District. Land/Building acquisition 0 q Site Improvements/Preparation costs 728,204 Installation of public utilities 0 Parking facilities 0 Streets and sidewalks 0 Public park facilities 0 Bond principal payments 0 Bond interest payments 0 Loan Principal payments 728,204 Loan Interest payments 342,188 Capitalized Interest payments 100,985 Administrative expenses (1% of projected tax increment) 20,557 Other—redevelopment costs within district(19%of projected tax increment) 390,590 Other— pooling outside district (surplus increment after projected payment of TIF Note) 473,213 Total $2,783,941 The Authority anticipates reserving 20% of the annual increment for administrative expenses and pooling for affordable housing and/or transportation needs within the District and Project Area. Based on the assumptions listed in this TIF Plan,that amount is estimated to be$411,147. The remaining 80%is expected to be available for payment of the developer TIF Note, which is estimated to be $728,204 of principal, $342,188 of interest and $100,985 of capitalized interest costs. Approximately$473,213 is expected to be surplus increment that may be used for qualified project expenditures within the district or project area, pending eligibility. The Authority reserves the right to administratively adjust the amount of any of the items listed above or to incorporate additional eligible items,so long as the total estimated public cost is not increased. SPRINGSTED Page 6 r Housing and Redevelopment Authority in and for the City of Eden Prairie, Minnesota Section L Estimated Sources of Revenue Tax Increment revenue $2,055,737 Interest on invested funds 0 Bond proceeds 0 Loan proceeds 728,204 Real estate sales 0 Special assessments 0 Rent/Lease revenue 0 Grants 0 Other 0 Total $2,783,941 The Authority anticipates providing financial assistance to the proposed development through the use of a pay-as- you-go technique. As tax increments are collected from the TIF District in future years,a portion of these taxes will be distributed to the developer/owner as reimbursement for public costs incurred(see Section K). The Authority reserves the right to finance any or all public costs of the TIF District using pay-as-you-go assistance, internal funding, general obligation or revenue debt, or any other financing mechanism authorized by law. The Authority also reserves the right to use other sources of revenue legally applicable to the Project Area to pay for such costs including, but not limited to, special assessments, utility revenues, federal or state funds, and investment income. Section M Estimated Amount of Bonded Indebtedness The Authority does not anticipate issuing tax increment bonds to finance the estimated public costs of the TIF District, but reserves the right to issue such bonds in an amount not to exceed$728,204. Section N Original Net Tax Capacity The County Auditor shall certify the original net tax capacity of the TIF District. This value will be equal to the total net tax capacity of all property in the TIF District as certified by the State Commissioner of Revenue. For districts certified between January 1 and June 30, inclusive, this value is based on the previous assessment year. For districts certified between July 1 and December 31,inclusive,this value is based on the current assessment year. The Estimated Market Value of all property with the original parcel ID of 01-116-22-13-0034 comprising of 15.42 acres as of January 2, 2005, for taxes payable in 2006, is $3,133,000. The area within the proposed TIF District boundaries is 10.36 acres,therefore we assume the value of the portion within the boundaries of the TIF District to be $2,104,921 and the current net tax capacity of the property is$41,348. The original parcel was replatted to reflect the subdivision of property to be contained within the boundaries of the proposed TIF district and a current market value of$1,998,000 was applied as of January 2,2005 for taxes payable in 2006 to the new parcel 01-116-22-13-0037. The portion of the parcel within the boundaries of the district contained a substandard building that was demolished in late 2005. The greater of the current net tax capacity or the estimated market value of the parcel for the year in which the building was removed, applying class rates for the current year must be used to calculate the original net tax capacity. Therefore, upon establishment of the TIF District, and subsequent reclassification of property, it is estimated that the original net tax capacity of the TIF District will be approximately$41,348. SPRINGSTED Page 7 Housing and Redevelopment Authority in and for the City of Eden Prairie, Minnesota Each year the County Auditor shall certify the amount that the original net tax capacity has increased or decreased as a result of: (1) changes in the tax-exempt status of property; (2) reductions or enlargements of the geographic area of the TIF District; (3) changes due to stipulation agreements or abatements;or (4) changes in property classification rates. Section 0 Original Tax Capacity Rate The County Auditor shall also certify the original tax capacity rate of the TIF District. This rate shall be the sum of all local tax rates that apply to property in the TIF District. This rate shall be for the same taxes payable year as the original net tax capacity. In future years,the amount of tax increment generated by the TIF District will be calculated using the lesser of(a)the sum of the current local tax rates at that time or(b)the original tax capacity rate of the TIF District. At the time this document was prepared, the sum of all local tax rates that apply to property in the TIF District, for taxes levied in 2006 and payable in 2007, was not yet available. When this total becomes available, the County Auditor shall certify this amount as the original tax capacity rate of the TIF District. For purposes of estimating the tax increment generated by the TIF District,the sum of the local tax rates for taxes levied in 2005 and payable in 2006,is 101.089%as shown below. 2005/2006 Taxing Jurisdiction Local Tax Rate City of Eden Prairie 28.782% Hennepin County 41.016% ISD#272 23.187% Other 8.104% Total 101.089% Section P Projected Retained Captured Net Tax Capacity and Projected Tax Increment The Authority anticipates that the redevelopment will be completed by December 31, 2007, creating a total tax capacity for TIF District No. 20 of $252,164 as of January 2, 2008. The captured tax capacity as of that date is estimated to be $134,724 and the first full year of tax increment is estimated to be $136,191 payable in 2009. A complete schedule of estimated tax increment from the TIF District is shown in Exhibit III. The estimates shown in this TIF Plan assume that commercial class rates remain at 2.0% of the estimated market value over$150,000 and assume 1%annual increase in market values. Each year the County Auditor shall determine the current net tax capacity of all property in the TIF District. To the extent that this total exceeds the original net tax capacity, the difference shall be known as the captured net tax capacity of the TIF District. SPRINGSTED Page 8 Housing and Redevelopment Authority in and for the City of Eden Prairie, Minnesota For communities affected by the fiscal disparity provisions of Minnesota Statutes, Chapter 473F and Chapter 276A, the original net tax capacity of the TIF District shall be determined before the application of fiscal disparity. In subsequent years,the current net tax capacity shall either(a)be determined before the application of fiscal disparity or (b)exclude the product of any fiscal disparity increase in the TIF District(since the original net tax capacity was certified)times the appropriate fiscal disparity ratio. The method the Authority elects shall remain the same for the life of the TIF District except that a single change may be made at an time from method(a)to method(b) above. The P 9 9 Y Y Authority elects method(b),or M.S.Section 469.177,Subdivision 3(b). The County Auditor shall certify to the Authority the amount of captured net tax capacity each year. The Authority may choose to retain any or all of this amount. It is the Authority's intention to retain 100%of the captured net tax capacity of the TIF District. Such amount shall be known as the retained captured net tax capacity of the TIF District. Exhibit II gives a listing of the various information and assumptions used in preparing a number of the exhibits contained in this TIF Plan, including Exhibit III which shows the projected tax increment generated over the anticipated life of the TIF District. Exhibit VI shows the projected pay-as-you-go note with the maximum amount of $728,204 associated with reimbursement of TIF eligible redevelopment costs. Section Q Use of Tax Increment Each year the County Treasurer shall deduct 0.36%of the annual tax increment generated by the TIF District and pay such amount to the State's General Fund. Such amounts will be appropriated to the State Auditor for the cost of financial reporting and auditing of tax increment financing information throughout the state. Exhibit III shows the projected deduction for this purpose over the anticipated life of the TIF District. The Authority has determined that it will use 100% of the remaining tax increment generated by the TIF District for any of the following purposes: (1) pay for the estimated public costs of the TIF District (see Section K) and County administrative costs associated with the TIF District(see Section T); (2) pay principal and interest on tax increment bonds or other bonds issued to finance the estimated public costs of the TIF District; (3) accumulate a reserve securing the payment of tax increment bonds or other bonds issued to finance the estimated public costs of the TIF District; (4) pay all or a portion of the county road costs as may be required by the County Board under M.S. Section 469.175,Subdivision 1 a;or (5) return excess tax increments to the County Auditor for redistribution to the City,County and School District. Tax increments from property located in one county must be expended for the direct and primary benefit of a project located within that county, unless both county boards involved waive this requirement. Tax increments shall not be used to circumvent levy limitations applicable to the City. Tax increment shall not be used to finance the acquisition,construction, renovation, operation, or maintenance of a building to be used primarily and regularly for conducting the business of a municipality,county,school district,or any other local unit of government or the State or federal government,or for a commons area used as a public park,or a facility used for social, recreational, or conference purposes. This prohibition does not apply to the construction or renovation of a parking structure or of a privately owned facility for conference purposes. SPRINGSTED Page 9 Housing and Redevelopment Authority in and for the City of Eden Prairie, Minnesota If there exists any type of agreement or arrangement providing for the developer,or other beneficiary of assistance,to repay all or a portion of the assistance that was paid or financed with tax increments,such payments shall be subject to all of the restrictions imposed on the use of tax increments. Assistance includes sale of property at less than the cost of acquisition or fair market value, grants, ground or other leases at less then fair market rent, interest rate subsidies, utility service connections, roads, or other similar assistance that would otherwise be paid for by the developer or beneficiary. Section R Excess Tax Increment In any year in which the tax increments from the TIF District exceed the amount necessary to pay the estimated public costs authorized by the TIF Plan,the Authority shall use the excess tax increments to: (1) prepay any outstanding tax increment bonds; (2) discharge the pledge of tax increments thereof; (3) pay amounts into an escrow account dedicated to the payment of the tax increment bonds;or (4) return excess tax increments to the County Auditor for redistribution to the City,County and School District. The County Auditor must report to the Commissioner of Education the amount of any excess tax increment redistributed to the School District within 30 days of such redistribution. Section S Tax Increment Pooling and the Five Year Rule At least 75%of the tax increments from the TIF District must be expended on activities within the district or to pay for bonds used to finance the estimated public costs of the TIF District (see Section E for additional restrictions). No more than 25%of the tax increments may be spent on costs outside of the TIF District but within the boundaries of the Project Area, except to pay debt service on credit enhanced bonds. All administrative expenses are considered to have been spent outside of the TIF District. Tax increments are considered to have been spent within the TIF District if such amounts are:[M.S.Section 469.1763,Subdivisions 2-4] (1) actually paid to a third party for activities performed within the TIF District within five years after certification of the district; (2) used to pay bonds that were issued and sold to a third party,the proceeds of which are reasonably expected on the date of issuance to be spent within the later of the five-year period or a reasonable temporary period or are deposited in a reasonably required reserve or replacement fund. (3) used to make payments or reimbursements to a third party under binding contracts for activities performed within the TIF District, which were entered into within five years after certification of the district;or (4) used to reimburse a party for payment of eligible costs(including interest)incurred within five years from certification of the district. Beginning with the sixth Year following certification of the TIF District,at least 75%of the tax increments must be used to pay outstanding bonds or make contractual payments obligated within the first five years. When outstanding bonds have been defeased and sufficient money has been set aside to pay for such contractual obligations,the TIF District must be decertified. SPRINGSTED Page 10 Housing and Redevelopment Authority in and for the City of Eden Prairie, Minnesota The Authority anticipates that tax increments will be spent outside of the TIF District(including a portion for allowable administrative expenses) for transportation, redevelopment and affordable housing qualified pooling expenditures. The Authority anticipates reserving 20%of the annual increment for pooling expenditures. Section T Limitation on Administrative Expenses Administrative expenses are defined as all costs of the Authority other than: (1) amounts paid for the purchase of land; (2) amounts paid for materials and services, including architectural and engineering services directly connected with the physical development of the real property in the project; (3) relocation benefits paid to, or services provided for, persons residing or businesses located in the project; ry for r ell at a discount bonds issued 4 amounts used toprincipal r interest on fund a reserve o s( ) pay o , pursuant to section 469.178;or (5) amounts used to pay other financial obligations to the extent those obligations were used to finance costs described in clause(1)to(3). Administrative expenses include amounts paid for services provided by bond counsel,fiscal consultants,planning or economic development consultants, City staff time, and actual costs incurred by the County in administering the TIF District.Tax increments may be used to pay administrative expenses of the TIF District up to the lesser of(a) 10%of the total estimated public costs authorized by the TIF Plan or(b) 10%of the total tax increment expenditures for the project.[M.S.Section 469.176,Subdivision 3] Section U Limitation on Property Not Subject to Improvements-Four Year Rule If after four years from certification of the TIF District no demolition,rehabilitation,renovation,or qualified improvement of an adjacent street has commenced on a parcel located within the TIF District,then that parcel shall be excluded from the TIF District and the original net tax capacity shall be adjusted accordingly. Qualified improvements of a street are limited to construction or opening of a new street, relocation of a street, or substantial reconstruction or rebuilding of an existing street. The Authority must submit to the County Auditor, by February 1 of the fifth year, evidence that the required activity has taken place for each parcel in the TIF District. If a parcel is excluded from the TIF District and the Authority or owner of the parcel subsequently commences any of the above activities,the Authority shall certify to the County Auditor that such activity has commenced and the parcel shall once again be included in the TIF District. The County Auditor shall certify the net tax capacity of the parcel,as most recently certified by the Commissioner of Revenue,and add such amount to the original net tax capacity of the TIF District.[M.S.Section 469.176,Subdivision 6] Section V Estimated Impact on Other Taxing Jurisdictions Exhibit IV shows the estimated impact on other taxing jurisdictions if the maximum projected retained captured net tax capacity of the TIF District wash hypothetically available to the other taxing jurisdictions. The Author ity believes that P ty YP Y 9! ty there will be no adverse impact on other taxing jurisdictions during the life of the TIF District, since the proposed development would not have occurred without the establishment of the TIF District and the provision of public assistance. A positive impact on other taxing jurisdictions will occur when the TIF District is decertified and the development therein becomes part of the general tax base. SPRINGSTED Page 11 Housing and Redevelopment Authority in and for the City of Eden Prairie, Minnesota The fiscal and economic implications of the proposed tax increment financing district, as pursuant to Minnesota Statutes,Section 469.175,Subdivision 2,are listed below. 1. The total amount of tax increment that will be generated over the life of the district is estimated to be $2,063,163. 2. To the extent the project in TIF District 20 generates any public cost impacts on city-provided services such as police and fire protection, public infrastructure, and borrowing costs attributable to the district,such costs will be levied upon the taxable net tax capacity of the City,excluding that portion captured by the District. 3. The amount of tax increments over the life of the district that would be attributable to school district levies, assuming the school district's share of the total local tax rate for all taxing jurisdictions remained the same,is estimated to be$473,231. 4. The amount of tax increments over the life of the district that would be attributable to county levies,assuming the county's share of the total local tax rate for all taxing jurisdictions remained the same is estimated to be $837,112. 5. The amount of tax increments over the life of the district that would be attributable to city levies, assuming the city's share of the total local tax rate for all taxing jurisdictions remained the same is estimated to be $587,421. 6. No additional information has been requested by the county or school district that would enable it to determine additional costs that will accrue to it due to the development proposed for the district. Section W Prior Planned Improvements The Authority shall accompany its request for certification to the County Auditor (or notice of district enlargement), with a listing of all properties within the TIF District for which building permits have been issued during the 18 months immediately preceding approval of the TIF Plan. The County Auditor shall increase the original net tax capacity of the TIF District by the net tax capacity of each improvement for which a building permit was issued. [M.S. Section 469.177,Subdivision 4] There have been no building permits issued in the last 18 months in conjunction with any of the properties within the TIF District. Section X Development Agreements If within a project containing a redevelopment district,more than 25%of the acreage of the property to be acquired by the Authority is purchased with tax increment bonds proceeds (to which tax increment from the property is pledged), then prior to such acquisition,the Authority must enter into an agreement for the development of the property. Such agreement must provide recourse for the Authority should the development not be completed.[M.S.Section 469.176, Subdivision 5] The Authority anticipates entering into an agreement for development, but does not anticipate acquiring any property located within the TIF District. SPRINGSTED Page 12 Housing and Redevelopment Authority in and for the City of Eden Prairie, Minnesota Section Y Assessment Agreements The Authority may, upon entering into a development agreement, also enter into an assessment agreement with the developer, which establishes a minimum market value of the land and improvements for each year during the life of the TIF District. The assessment agreement shall be presented to the County or City Assessor who shall review the plans and specifications for the improvements to be constructed, review the market value previously assigned to the land,and so long as the minimum market value contained in the assessment agreement appears to be an accurate estimate, shall certify the assessment agreement as reasonable. The assessment agreement shall be filed for record in the office of the County Recorder of each county where the property is located. Any modification or premature termination of this agreement must first be approved by the City,County and School District. [M.S.Section 469.177, Subdivision 8] The Authority anticipates entering into an assessment agreement. Section Z Modifications of the Tax Increment Financing Plan Any reduction or enlargement in the geographic area of the Project Area or the TIF District;increase in the amount of bonded indebtedness to be incurred; a determination to capitalize interest on the debt if that determination was not part of the original TIF Plan; increase in the portion of the captured net tax capacity to be retained by the Authority; increase in the total estimated public costs;or designation of additional property to be acquired by the Authority shall be approved only after satisfying all the necessary requirements for approval of the original TIF Plan. This paragraph does not apply if:[M.S.Section 469.175,Subdivision 4] (1) the only modification is elimination of parcels from the TIF District;and (2) the current net tax capacity of the parcels eliminated equals or exceeds the net tax capacity of those parcels in the TIF District's original net tax capacity, or the Authority agrees that the TIF District's original net tax capacity will be reduced by no more than the current net tax capacity of the parcels eliminated. The Authority must notify the County Auditor of any modification that reduces or enlarges the geographic area of the TIF District. The geographic area of the TIF District may be reduced but not enlarged after five years following the date of certification. Section AA Administration of the Tax Increment Financing Plan Upon adoption of the TIF Plan, the Authority shall submit a copy of such plan to the Commissioner of Revenue and the Office of the State Auditor. The Authority shall also request that the County Auditor certify the original net tax capacity and net tax capacity rate of the TIF District. To assist the County Auditor in this process,the Authority shall submit copies of the TIF Plan, the resolution establishing the TIF District and adopting the TIF Plan, and a listing of any prior planned improvements. The Authority shall also send the County Assessor any assessment agreement establishing the minimum market value of land and improvements in the TIF District,and shall request that the County Assessor review and certify this assessment agreement as reasonable. The County shall distribute to the Authority the amount of tax increment as it becomes available. The amount of tax increment in any year represents the applicable property taxes generated by the retained captured net tax capacity of the TIF District. The amount of tax increment may change due to development anticipated by the TIF Plan, other development,inflation of property values,or changes in property classification rates or formulas. In administering and implementing the TIF Plan,the following actions should occur on an annual basis: SPRINGSTED Page 13 Housing and Redevelopment Authority in and for the City of Eden Prairie, Minnesota (1) prior to July 1, the Authority shall notify the County Assessor of any new development that has occurred in the TIF District during the past year to insure that the new value will be recorded in a timely manner. (2) if the County Auditor receives the request for certification of a new TIF District,or for modification of an existing TIF District,before July 1,the request shall be recognized in determining local tax rates for the current and subsequent levy years. Requests received on or after July 1 shall be used to determine local tax rates in subsequent years. (3) each year the County Auditor shall certify the amount of the original net tax capacity of the TIF District. The amount certified shall reflect any changes that occur as a result of the following: (a) the value of property that changes from tax-exempt to taxable shall be added to the original net tax capacity of the TIF District. The reverse shall also apply; (b) the original net tax capacity may be modified by any approved enlargement or reduction of the TIF District; (c) if laws governing the classification of real property cause changes to the percentage of estimated market value to be applied for property tax purposes,then the resulting increase or decrease in net tax capacity shall be applied proportionately to the original net tax capacity and the retained captured net tax capacity of the TIF District. The County Auditor shall notify the Authority of all changes made to the original net tax capacity of the TIF District. Section AB Filing TIF Plan,Financial Reporting and Disclosure Requirements The Authority will file the TIF Plan,and any subsequent amendments thereto,with the Commissioner of Revenue and the Office of the State Auditor pursuant to Minnesota Statutes,Section 469.175,subdivision 4A. The Authority will comply with all reporting requirements for the TIF District under Minnesota Statutes,Section 469.175,subdivisions 5 and 6. SPRINGSTED Page 14 Exhibit l MAP OF TAX INCREMENT FINANCING(REDEVELOPMENT)DISTRICT NO. 20 4 x � g\III II� s n _ \ \ Tax Increment Financing Redevelopment Superior Tech 20 Center e United Properties \ v I City of Eden Prairie Tax Increment Redevelopment District#20 Superior Tech Center SPRINGSTED Page 15 Exhibit MAP OF REDEVELOPMENT PROJECT AREA NO.6 City of Eden Prairie Tax Increment Redevelopment Project Area#6 SPRINGSTED Page 16 Exhibit ll Assumptions Report City of Eden Prairie, Minnesota Tax Increment Financing (Redevelopment) District No.20 Superior Tech Center Project Scenario 1 -15 yr term -20%Admin/Pooling-June 2006 Type of Tax Increment Financing District Redevelopment Maximum Duration of TIF District 25 years from 1 st increment Projected Certification Request Date 09/01/06 Decertification Date 12/31/22 (15 Years of Increment) 2006/2007 Base Estimated Market Value $2,104,921 Original Net Tax Capacity $41,348 Assessment/Collection Year 2006/2007 2007/2008 2008/2009 2009/2010 Base Estimated Market Value $2,104,921 $2,104,921 $2,104,921 $2,104,921 Less: EMV of Existing Bldg&Land Value ($106,921) ($106,921) ($106,921) ($106,921) Increase in EMV of New Bldg 0 2,132,777 10,685,212 10,792,064 Total Estimated Market Value 1,998,000 4,130,777 12,683,212 12,790,064 Total Net Tax Capacity $39,210 $81,116 $252,164 $254,301 City of Eden Prairie 28.782% Hennepin County 41.016% ISD#272 23.187% Other 8.104% Local Tax Capacity Rate 101.089% 2005/2006 Fiscal Disparities Contribution From TIF District 36.0941% Administrative Retainage Percent(maximum= 10%) 1.00% Pooling Percent 19.00% Bonds Note(Pay-As-You-Go) Bonds Dated NA Note Dated 09/01/06 Bond Issue @ 6.00%(NIC) NA Note Rate 6.50% Eligible Project Costs NA Note Amount $728,204 Present Value Date&Rate 09/01/06 6.50% Notes *Value of the land&building prior to demolition(2005/06 valuation)must be used according to state law. PID 01-116-22-13-0034: prior to building demolition,total EMV, including land&bldg is$3,133,000 for 2005/06, For purposes of estimating base EMV of District,assume allocation based on acreage(10.36/15.42 acres). PID 01-116-22-13-0037: replatted after building demo, EMV, land only$1,998,000 for 2006/07. No assumptions made regarding future changes to class rates and tax capacity rates. Includes 1%annual market value inflator. Estimated value of new building is approximately 75%of estimated cost of construction, estimated cost/square floot is approx.$156,therefore value/square foot is approx.$117. Assume construction 20%complete by 12/31/06 and 100%complete by 12/31/07. SPRINGSTED Page 17 Exhibit Pro'ected Tax Increment Report -71 City of Eden Prairie,Minnesota Tax Increment Financing(Redevelopment)District No.20 Superior Tech Center Project Scenario 1-15 yr term-20%Admin/Pooling-June 2006 Less: Less: Retained Times: Less: Less: P.V. P.V. Annual Total Original Fiscal Captured Tax Annual State Aud. Adm./Pooling Annual Annual Annual Period Net Tax Net Tax Disp.0- Net Tax Capacity Gross Tax Deduction Retainage Net Net Rev.To Retainage To Ending Capacity Capacity 36.0941% Capacity Rate Increment 0.360% 20.00% Revenue 09/01/06 09/01/06 1 2 4 5 6 7 8 9 10 6.50% 6.50% 12/31/06 41,348 41,348 0 0 101.089% 0 0 0 0 0 0 12/31/07 39,210 41,348 0 0 101.089% 0 0 0 0 0 0 12/31/08 81,116 41,348 14,354 25,413 101.089% 25,690 92 5,120 20,478 17,960 4,490 12/31/09 252,164 41,348 76,092 134,724 101.089% 136,191 490 27,140 108,561 89,402 22,350 12/31/10 254,301 41,348 76,863 136,090 101.089% 137,572 495 27,415 109,662 84,797 21,199 12/31/11 256,460 41,348 77,642 137,469 101.089% 138,966 500 27,693 110,773 80,428 20,107 12/31/12 258,640 41,348 78,429 138,862 101.089% 140,374 505 27,974 111,895 76,284 19,071 12/31/13 260,841 41,348 79,224 140,269 101.089% 141,797 510 28,257 113,030 72,355 18,088 12/31/14 263,065 41,348 80,027 141,690 101.089% 143,233 516 28,543 114,174 68,626 17,156 12/31/15 265,311 41,348 80,837 143,126 101.089% 144,685 521 28,833 115,331 65,091 16,273 12/31/16 267,580 41,348 81,656 144,575 101.089% 146,150 526 29,125 116,499 61,737 15,434 12/31/17 269,871 41,348 82,483 146,040 101.089% 147,630 531 29,420 117,679 58,556 14,639 12/31/18 272,185 41,348 83,318 147,519 101.089% 149,125 537 29,718 118,870 55,539 13,885 12/31/19 274,522 41,348 84,162 149,012 101.089% 150,635 542 30,019 120,074 52,677 13,170 12/31/20 276,883 41,348 85,014 150,521 101.089% 152,160 548 30,322 121,290 49,963 12,491 12/31/21 279,267 41,348 85,875 152,044 101.089% 153,700 553 30,629 122,518 47,389 11,847 12/31/22 281,675 41,348 86,744 153,583 101.089% 155,255 559 30,939 123,757 44,947 11,237 12/31/23 0 0 0 0 101.089% 0 0 0 0 0 0 12/31/24 0 0 0 0 101.089% 0 0 0 0 0 0 12/31/25 0 0 0 0 101.089% 0 0 0 0 0 0 12/31/26 0 0 0 0 101.089% 0 0 0 0 0 0 12/31/27 0 0 0 0 101.089% 0 0 0 0 0 0 12/31/28 0 0 0 0 101.089% 0 0 0 0 0 0 12/31/29 0 0 0 0 101.089% 0 0 0 0 0 0 12/31/30 0 0 0 0 101.089% 0 0 0 0 0 0 12/31/31 0 0 0 0 101.089% 0 0 0 0 0 0 12/31/32 0 0 0 0 101.089% 0 0 0 0 0 0 12/31/33 0 0 0 0 101.089% 0 0 0 0 0 0 12/31/34 0 0 0 0 101.089% 0 0 0 0 0 2063163 $7,425 $411,1471 $1,644,591 $925,751 $231,437 SPRINGSTED Page 18 Exhibit 1V Estimated Impact on Other Taxing Jurisdictions Report City of Eden Prairie,Minnesota Tax Increment Financing(Redevelopment)District No.20 Superior Tech Center Project Scenario 1 -15 yr term-20%Admin/Pooling-Total EMV$12.2M-June 2006 Without Project or TIF District With Project and TIF District Projected Hypothetical 2005/2006 2005/2006 Retained New Hypothetical Hypothetical Tax Generated Taxable 2005/2006 Taxable Captured Taxable Adjusted Decrease In by Retained Taxing Net Tax Local Net Tax Net Tax Net Tax Local Local Captured Jurisdiction Capacity(1) Tax Rate Capacity(1) + Capacity = Capacity Tax Rate(*) Tax Rate(*) N.T.C.(*) City of Eden Prairie 90,698,663 28.782% 90,698,663 $153,583 90,852,246 28.733% 0.049% 44,130 Hennepin County 1,229,390,982 41.016% 1,229,390,982 153,583 1,229,544,565 41.011% 0.005% 62,986 ISD#272 87,090,651 23.187% 87,090,651 153,583 87,244,234 23.146% 0.041% 35,549 Other(2) --- 8.104% --- 153,583 --- 8.104% Totals 101.089% 100.994% 0.095% * Statement 1: If the projected Retained Captured Net Tax Capacity of the TIF District was hypothetically available to each of the taxing jurisdictions above,the result would be a lower local tax rate(see Hypothetical Adjusted Tax Rate above) which would produce the same amount of taxes for each taxing jurisdiction. In such a case,the total local tax rate would decrease by 0.095%(see Hypothetical Decrease in Local Tax Rate above). The hypothetical tax that the Retained Captured Net Tax Capacity of the TIF District would generate is also shown above. Statement 2: Since the projected Retained Captured Net Tax Capacity of the TIF District is not available to the taxing jurisdictions, then there is no impact on taxes levied or local tax rates. (1) Taxable net tax capacity=total net tax capacity-captured TIF-fiscal disparity contribution,if applicable. (2) The impact on these taxing jurisdictions is negligible since they represent only 8.02%of the total tax rate. SPRINGSTED Page 19 Exhibit V Market Value Analysis Report City of Eden Prairie, Minnesota Tax Increment Financing (Redevelopment) District No. 20 Superior Tech Center Project Scenario 1 - 15 yr term -20%Admin/Pooling -June 2006 Assumptions Present Value Date 09/01/06 P.V. Rate- Gross T.I. 6.50% Increase in EMV With TIF District $12,160,768 Less: P.V of Gross Tax Increment 1,161,369 Subtotal $10,999,399 Less: Increase in EMV Without TIF 0 Difference $10,999,399 Annual Present Gross Tax Value @ Year Increment 6.50% 1 2008 25,690 22,531 2 2009 136,191 112,155 3 2010 137,572 106,378 4 2011 138,966 100,898 5 2012 140,374 95,700 6 2013 141,797 90,770 7 2014 143,233 86,093 8 2015 144,685 81,658 9 2016 146,150 77,450 10 2017 147,630 73,460 11 2018 149,125 69,675 12 2019 150,635 66,085 13 2020 152,160 62,680 14 2021 153,700 59,450 15 2022 155,255 56,386 16 2023 0 0 17 2024 0 0 18 2025 0 0 19 2026 0 0 20 2027 0 0 21 2028 0 0 22 2029 0 0 23 2030 0 0 24 2031 0 0 25 2032 0 0 26 2033 0 0 $2,063,163 $1,161,369 SPRINGSTED Exhibit VI Projected Pay-As-You-Go Note Report City of Eden Prairie,Minnesota Tax Increment Financing(Redevelopment)District No.20 Superior Tech Center Project Scenario 1 -15 yr term-20%Admin/Pooling-Total EMV$12.2M-June 2006 Note Date: 09/01/06 Note Rate: 6.50% Amount: $728,204 Semi-Annual Loan Net Capitalized Balance Date Principal Interest P&I Revenue* Interest Outstanding (1) (2) (3) (4) (5) (6) (7) 728,204.00 02/01/07 0.00 0.00 0.00 0.00 19,722.19 747,926.19 08/01/07 0.00 0.00 0.00 0.00 24,307.60 772,233.79 02/01/08 0.00 0.00 0.00 0.00 25,097.60 797,331.39 08/01/08 0.00 10,239.00 10,239.00 10,239.00 15,674.27 813,005.66 02/01/09 0.00 10,239.00 10,239.00 10,239.00 16,183.68 829,189.34 08/01/09 27,331.85 26,948,65 54,280.50 54,280.50 0.00 801,857.49 02/01/10 28,220.13 26,060.37 54,280.50 54,280.50 0.00 773,637.36 08/01/10 29,687.79 25,143.21 54,831.00 54,831.00 0.00 743,949.57 02/01/11 30,652.64 24,178.36 54,831.00 54,831.00 0.00 713,296.93 08/01/11 32,204.35 23,182.15 55,386.50 55,386.50 0.00 681,092.58 02/01/12 33,250.99 22,135.51 55,386.50 55,386.50 0.00 647,841.59 08/01/12 34,892.65 21,054.85 55,947.50 55,947.50 0.00 612,948.94 02/01/13 36,026.66 19,920.84 55,947.50 55,947.50 0.00 576,922.28 08/01/13 37,765.03 18,749.97 56,515.00 56,515.00 0.00 539,157.25 02/01/14 38,992.39 17,522.61 56,515.00 56,515.00 0.00 500,164.86 08/01/14 40,831.64 16,255.36 57,087.00 57,087.00 0.00 459,333.22 02/01/15 42,158.67 14,928.33 57,087.00 57,087.00 0.00 417,174.55 08/01/15 44,107.33 13,558.17 57,665.50 57,665.50 0.00 373,067.22 02/01/16 45,540.82 12,124.68 57,665.50 57,665.50 0.00 327,526.40 08/01/16 47,604.89 10,644.61 58,249.50 58,249.50 0.00 279,921.51 02/01/17 49,152.05 9,097.45 58,249.50 58,249.50 0.00 230,769.46 08/01/17 51,339.49 7,500.01 58,839.50 58,839.50 0.00 179,429.97 02/01/18 53,008.03 5,831.47 58,839.50 58,839.50 0.00 126,421.94 08/01/18 55,326.29 4,108.71 59,435.00 59,435.00 0.00 71,095.65 02/01/19 57,124.39 2,310.61 59,435.00 59,435.00 0.00 13,971.26 08/01/19 13,971.26 454.07 14,425.33 14,425.33 0.00 0.00 02/01/20 0.00 0.00 0.00 0.00 0.00 0.00 08/01/20 0.00 0.00 0.00 0.00 0.00 0.00 02/01/21 0.00 0.00 0.00 0.00 0.00 0.00 08/01/21 0.00 0.00 0.00 0.00 0.00 0.00 02/01/22 0.00 0.00 0.00 0.00 0.00 0.00 08/01/22 0.00 0.00 0.00 0.00 0.00 0.00 02/01/23 0.00 0.00 0.00 0.00 0.00 0.00 08/01/23 0.00 0.00 0.00 0.00 0.00 0.00 02/01/24 0.00 0.00 0.00 0.00 0.00 0.00 08/01/24 0.00 0.00 0.00 0.00 0.00 0.00 02/01/25 0.00 0.00 0.00 0.00 0.00 0.00 08/01/25 0.00 0.00 0.00 0.00 0.00 0.00 02/01/26 0.00 0.00 0.00 0.00 0.00 0.00 08/01/26 0.00 0.00 0.00 0.00 0.00 0.00 02/01/27 0.00 0.00 0.00 0.00 0.00 0.00 08/01/27 0.00 0.00 0.00 0.00 0.00 0.00 02/01/28 0.00 0.00 0.00 0.00 0.00 0.00 08/01/28 0.00 0.00 0.00 0.00 0.00 0.00 02/01/29 0.00 0.00 0.00 0.00 0.00 0.00 08/01/29 0.00 0.00 0.00 0.00 0.00 0.00 02/01/30 0.00 0.00 0.00 0.00 0.00 0.00 08/01/30 0.00 0.00 0.00 0.00 0.00 0.00. 02/01/31 0.00 0.00 0.00 0.00 0.00 0.00 08/01/31 0.00 0.00 0.00 0.00 0.00 0.00 02/01/32 0.00 0.00 0.00 0.00 0.00 0.00 08/01/32 0.00 0.00 0.00 0.00 0.00 0.00 02/01/33 0.00 0.00 0.00 0.00 0.00 0.00 08/01/33 0.00 0.00 0.00 0.00 0.00 0.00 02/01/34 0.00 0.00 0.00 0.00 0.00 0.00 $829,189 $342,187.99 $1,171,377.33 $1,171,377.33 $100,985.34 Surplus Tax Increment 473,213.67 Total Net Revenue $1,644,591.00 Semi-annual net revenue is estimated to be 80%of the projected annual tax increment. The remaining 20%will be retained by the City for eligible affordable housing and/or transportion pooling expenditures,and adminstrative expenses. SPRINGSTED OAT 7 25-6 DEVELOPMENT A / T \ zy BY AND : \\ �y . THE HOUSING AND 5 v LOPME&T d�: URITY IN AND FOR THE CITY /� IRIE SOTA ® 92006 �^ . TABLE OF CONTENTS ARTICLEI DEFINITIONS ........................................................................................................... 1 SectionI.I. Definitions.................................................................................................... 1 ARTICLE 11 REPRESENTATIONS AND WARRANTIES.........................................................3 Section 2.1. Representations and Warranties of the Authority . ...................................3 Section 2.2. Representations and Warranties of the Develo .` ..............................4 ARTICLE III UNDERTAKINGS BY DEVELOPER AND A Y.................................5 Section 3.1. Project; Site Improvements/Preparatior ....... ................................ 5 Section 3.2. Intentionally left blank a Section 3.3. Tax Increment Note;Reimburse nt to eveloper..... _ .......................6 Section 3.4. Compliance With Income an ent Req 'rements....... ...... ............7 Section 3.5. Business Subsidies Act.... .. ......... ............... ............7 Section 3.6. Assessment Agreement..... ... ARTICLE IV EVENTS OF DEFAULT ............................ 8 Section 4.1. Events of Default ........................... ...................................8 Section 4.2. Remedies on Defaul .....................................8 Section 4.3. No Remedy Exclusive.... ............ ...........................................9 Section 4.4. No Implied Waiver .... .. ..............9 ................................... Section 4.5. Agr "" )Pay Attorn" . ees an penses.......................................9 Section 4.6. I mni"n n of Author ....... ............................................................. 9 ARTICLE V ADDfTI .' PR SIONS .......... ::.............................................................. 10 Section 5.L Res ctio C7se.............................................................. 10 Sect' onflic nteres . : ....................................................................... 10 S., on 5 3` : , of s and Sections................................................................... 10 ction5.4. and & ................................................................................ 10 on 5.5. Cou ,arts. Sek. -5.6. Law min g........................................................................................... I I Section <7. Expirat .................................................................................................. 11 Section Provis* `s Surviving Rescission or Expiration.......................................... 11 SIGNATURES.......... .. EXHIBIT A: LEGAL DESCRIPTION.....................................................................................A-1 EXHIBIT B: FORM OF TAX INCREMENT NOTE...............................................................B-1 EXHIBIT C: COMPLIANCE CERTIFICATION.....................................................................C-1 EXHIBIT D: ASSESSMENT AGREEMENT.........................................................................D-1: i DEVELOPMENT AGREEMENT THIS AGREEMENT,made as of the I"day of August, 2006, by and between the Housing and Redevelopment Authority in and for the City of Eden Prairie, Minnesota(the "Authority"), a public body corporate and politic organized and existing under the laws of the State of Minnesota, and , a Minnesota (the"Developer"). WITNESSETH: WHEREAS,pursuant to Minnesota Statutes, Section 469 y , rough 469.047,the Authority has formed Redevelopment Project Area No. 6 (th, roje ea")and has adopted a Redevelopment Plan therefor(the"Redevelopment Plan" WHEREAS, pursuant to the provisions of M'," sota Statutes, Sectio .174 through 469.1799, as amended(hereinafter the "Tax Incre Act"), t Authority has within the Project Area, Tax Increment Financing(Redeve t)D' t No.20 (the Increment District"),the legal description of which is attached her xhibi A and has adopted a tax increment financing plan, dated August 1, 2006,therefor ax Increment Plan"),which provides for the use of tax increment fin in connection certain development within the Project Area;and WHEREAS, in order to achieve the ectiv = edevelopment Plan and particularly to make the Ian the Project Ar ": a ableelopment in conformance with the Redevelopment Plan . ity has det I, fined to a t the Developer with the financing of certain costs of a P ct(as h after define to be constructed within the Tax Increment District as more paw set fo- _in this Agree and WHE A the Au e development and construction of the Project, and fulfill reeme ire vital an 're in the best interests of the Authority and meet the red opment go' he co hensive plan of the City of Eden Prairie and are in acco _ -,with the pub i . ose ovisions of the applicable state and local laws and requirem nder which t .roject'as been undertaken and is being assisted. NOW, REFORE consideration of the premises and the mutual obligations of the parties hereto, ea them es hereby covenant and agree with the other as follows: ARTICLE I DEFINITIONS Section 1.1. Definitions. All capitalized terms used and not otherwise defined herein shall have the following meanings unless a different meaning clearly appears from the context: Agreement means this Agreement, as the same may be from time to time modified, amended or supplemented; Assessment Agreement means the Assessment Agreement between the Authority and the Developer in the form set forth as Exhibit D hereto; Authori1y means the Housing and Redevelopment Authority in and for the City of Eden Prairie,Minnesota; Board of Commissioners means the Board of Commissioners of the Housing and Redevelopment Authority in and for the City of Eden Prairie,Minnesota; Business Day means any day except a Saturday, Sunday or a - " oliday or a day on which banking institutions in the State are authorized by law or ex ive order to close; Qjjy means the City of Eden Prairie, Minnesota; Compliance Certificate means the Compliance at in subst ly the form attached hereto as Exhibit C, ' Counjy means Hennepin County, Minnesota," Developer means �� , a Minnesota its successors a uassigns; Development Property means the r legally des in Exhibit A attached to this Agreement,which is the same real prop as s the Increment District; Event of Default:, eans of the even Tscribed i ection 4.1 hereof; Land Ac uis' t cquisition o ' e Development Property as described in the Tax Increment Financin , Le al: lnistrah x en the fees and expenses incurred in connection with the `�tion o x Inc ' nt Financing Plan;the preparation of this Agreement,the Asses nt Agreement; 11 oth ated documents;the making of the Loan(as defined in Sec tn and the issua f the f increment Note; Notenent Amount# eans the amounts due under the Tax Increment Note; Note Pa ate "ans August 1, 2008, and each February 1 and August 1 of each year thereafter to an&, ing February 1, 2023; provided,that if any such Note Payment Date should not be a Busing Day,the Note Payment Date shall be the next succeeding Business Day; Prime Rate means the rate of interest from time to time publicly announced by U.S.Bank National Association in Minneapolis, Minnesota, as its"reference rate"or any successor rate, which rate shall change as and when that prime rate or successor rate changes; Project means the Superior Office Center to be constructed on the Development Property; 2 Project Area means the geographic area of Redevelopment Project Area No. 6 as provided in the Redevelopment Plan for Redevelopment Project Area No. 6, dated August 1, 2006, and approved by the Authority on August 1, 2006; Redevelopment Plan means the Redevelopment Plan approved in connection with the Project Area; Site Improvements means the site improvements described in the Tax Increment Financing Plan, specifically including demolition/environmental(asbes s abatement); State means the State of Minnesota; Tax Increments means the tax increments derived se '„ nua in the Tax Increment District which have been received and retained by the Auth ri in acco`', _ "e with the provisions of Minnesota Statutes, Section 469.177, less. thrity adm tive/pooling retainage of 20%; k Tax Increment Act means Minnesota St a to tions " 174 through 4 799, as amended; Tax Increment District means T crement Financi edevelopment)District No.20 located within the Project Area, the legal on of which i o on Exhibit A attached hereto,which is a redevelopment district u ` r' ncrement ; t Tax Increment Financmn Plan means the tncre ancing plan approved for the Tax Increment District b , Council and Board of -`ommissioners of the Authority dated August 1,2006 ' Tax Increment ean .. Tax Increm , - evenue Note(Superior Office Center Project)to be executed by t ed to the Developer pursuant to Article III hereof, the , 0" is a d her ibit B; and _ V11, `� avoidable Deb eansoutside the control of the party claiming its .° occrre "which are the .. t resul strikes, other labor troubles, unusually severe or , prolonged Bather, acts iod, ire or other casualty to the Project, litigation commenced by third parties; Bch, by inj tion or other similar judicial action or by the exercise of reasonable discrete,direct esults in delays, or acts of any federal, state or local governmental unit the Authority)which directly result in delays. ARTICLE II REPRESENTATIONS AND WARRANTIES Section 2.1. Representations and Warranties of the Authority. The Authority makes the following representations and warranties: 3 (a) The Authority is a housing and redevelopment authority duly organized and existing under the laws of the State of Minnesota and has the power to enter into this Agreement and carry out its obligations hereunder. (b) The Tax Increment District is a"redevelopment district"within the meaning of Minnesota Statutes, Section 469.174, subdivision 10, and was created, adopted and approved in accordance with the terms of the Tax Increment Act. (c) The development contemplated by this Agreement is in conformance with the development objectives set forth in the Redevelopment Plan. " (d) To finance certain costs within the Tax Increme t,the Authority proposes, subject to the further provisions of this Agreement, 'appl , Increments to reimburse the Developer and to reimburse the Authority f vxfu' s adva o the Developer for certain of the costs of the Site Improvements/Preparati ed in cone - with the Project as further provided in this Agreement. (e) The execution, delivery, and per forma f thi eement, and a- other documents or instruments required pursuant to this Agre y the Authority does not, and consummation of the transactions conte plated therein an lfillment of the terms thereof will not, conflict with or constitute on th of the Authori each of or default under any existing(i) agreement or instrument to why thorny is a" y which the Authority or any of its property is or may be bound, o ii) a act, cony ti-n or other proceeding establishing or related to the, establishment o the i officers or its resolutions. (f) There is nor to the ,. t of the A ority's knowledge is there threatened, any suit, " n or pr ing against a Authority before any court, arbitrator, administrative agene, y er go mental auth hat materially and adversely affects the validity of any of the tran` ` n lated her( y,the ability of the Authority to perform its obligations her.. or as mp r thereby, or the validity or enforceability of ,.r this Agre No memb he Bo Commissioners or officer of the Authority has either a direct or ~ 'rect financial rest ipthis Agreement within the meaning of Minnesota Statutes, Sections 41 �and 471.87 (h) T thori will reasonably cooperate with the Developer with respect to any litigation commence d parties with respect to the Development. Section 2.2. Representations and Warranties of the Developer. The Developer makes the following representations and warranties: (a) The Developer has the power to enter into this Agreement and to perform its obligations hereunder. (b) The Developer will cause the Project to be constructed substantially in accordance with the terms of this Agreement,the Redevelopment Plan, and all local, state and federal laws 4 and regulations(including,but not limited to, environmental,zoning, energy conservation, . building code and public health laws and regulations). (c) The construction of the Project would not be undertaken by the Developer, and in the opinion of the Developer would not be economically feasible within the reasonably foreseeable future,without the assistance and benefit to the Developer provided for in this Agreement. (d) The construction of the Project will commence on or before September 1,2006, and, barring Unavoidable Delays,the Project will be substantially co d by December 31, 2007. (e) The Developer will use commercially reason p effo obtain, or cause to be obtained, in a timely manner, all required permits, license n prova will meet, in a timely manner, all requirements of all applicable local, e,4 d federal la"m d regulations which must be obtained or met before the balance o e Project may be law nstructed. (f) Neither the execution and delivery of " gree the consum `" ion of the transactions contemplated hereby, nor the fulfillment o lia ce with the terms and conditions of this Agreement is prevent d, limited by or co : „ s with or results in a breach of, the terms, conditions or provision of any actual restrictiodence of indebtedness, agreement or instrument of whatever natuUN, h the Develo ' -' w a party or by which it is bound, or constitutes a default under any,rthe"" g. k (g) The Develo ill cooperate ith the, R rity with respect to any litigation commenced wig o the Projec ARTIC " ER �" " " OPER AND AUTHORITY Sects s ct Site Improvements/Preparations. The total cost of the Prod estimated to b� 034,$ and includes Site Improvements/Preparations, addition I nstruction co nd l07'development, architectural, engineering, and other costs. The es agree tha' e Site Improvements/Preparations to be constructed by the Developer ark ntial to th" uccessful completion of the Project. The costs of the Site Improvements ', ation, hich shall include engineering and all other costs directly related to the Site Improve parations, are estimated to be at least$728,204. The costs of the Site Improvements/Pi' rations shall be paid by the Developer. Subject to the terms hereof and the Tax Increment Note,the Authority shall reimburse the Developer up to$728,204, plus interest, for costs of Site Improvements/Preparations actually incurred and paid by the Developer as further provided in Section 3.3 hereof. The Developer shall pay all Legal and Administrative Expenses. Section 3.2. Reimbursement. a.) Reimbursement Upon Sale. Should the Developer sell the Project at any time prior to February 1, 2023 the Developer shall immediately 5 repay to the Authority the total amount of principal and interest paid to the Developer under the Tax Increment Note. In addition the Tax Increment Note shall be cancelled and no payments shall thereafter be due by the Authority under the Tax Increment Note and this Agreement shall terminate. b.) Reimbursement Based on Project Leases. At uch time as the rental space of the Project is 95%leased or 18 mont completion of construction,whichever first occurs, Devel `` shall submit an executed copy of each lease to the Authority for r he Authority shall conduct a review of the leases to dete e if t oject, as leased, continues to qualify for Tax Incre „.` a' istance a aggregate square footage of the leases on a triple ate,varies less $1.25 from $14.50 psf,then the Note Pa nt Amount shall not be ted. If the variation is greater than$ above 4.50 psf,then a mal Rate of Return(IRR) analysis will be' .ple lizing the the 'current project information including act u s and lease rates(rather than estimates) and a %/4 capitalization the sale of the building in the 11th year. If such s results in an ith assistance of less than 15%then the Projec to qualifyIncrement assistance and the Note Payment Arno not be dusted. If the analysis results in an IRR with�istian 15%,then the Note Pa „ ount shall b'_ 'creased u`" the IRR is not greater than 15%. Section 3.3 . z Incre Note: Reimf rsement to DeveloiDer. Provided that the Developer has subinitt idenc o the Authori t costs of the Site Improvements/Preparatio�. v „ ed a. paid by the Developer,the Authority shall reimburse t s ma the ev nder Section 3.1 in accordance with the Authorit y Tax In t Not` substantially the form attached to this Agreement as Exhibit B, su, t to the follo onditi _ (a he Tax Increment Nce shall be dated, issued and delivered on August 1, 2006. s (b) rincipal ount of$728,204 and interest on the Tax Increment Note, at an annual rate of six nt( /o), shall be payable solely from eighty percent(80%) of the Tax Increments. Interest "` ax Increment Note will compound semi-annually, except that the total amount of capita ''"ed interest that shall be payable by the Authority under the Tax Increment Note is limited to, shall not exceed, and shall not be less than, $100,985, as provided in the Tax Increment District's Tax Increment Financing Plan. (c) On each Note Payment Date and subject to the provisions of the Tax Increment Note,the Authority shall pay against the outstanding principal balance of and accrued interest on the Tax Increment Note, eighty percent(80%) of the Tax Increments received by the Authority from the Tax Increment District since the preceding Note Payment Date or, in the case of the first Note Payment Date,prior to such first Note Payment Date. All payments shall be first 6 applied to interest accrued on the Tax Increment Note and then to the unpaid principal of the Tax Increment Note.The Authority shall not be required to make any payments on the Tax Increment Note subsequent to February 1, 2023, and any balance of principal and interest remaining unpaid subsequent to the payment made on February 1, 2023 shall be deemed forgiven by the Developer. In no event shall the total principal Note Payment Amounts paid under the Tax Increment Note exceed the maximum amount of$728,204.00. (d) Any interest accruing on Tax Increments held by the Authority pending the Note Payment Dates shall accrue to the benefit of the Authority. (e) The Tax Increment Note shall be a special and lim obligation of the Authority and not a general obligation of the Authority or the City, and o ncrements shall be used to pay the principal of and interest on the Tax Increment Not . (f) The Authority's obligation to make pay t e Tax In nt Note on any Note Payment Date or any date thereafter shall be c itioned upon the requi t that(A) there shall not at that time be an Event of Default s occu d and is contin der this Agreement and(B)this Agreement shall not have bee cind rsuant to Sect' 4.2(a) hereof. (g) The Tax Increment Note be governed by ayable pursuant to the " .:.. additional terms thereof, as set forth in E - he issuance Increment Note pursuant and subject to the terms of this A reby aut zed and approved by the Authority... (h) The Dev = of assign th' ax Incrennt Note without the Authority's consent,which conse all not nreasonabl ithheld. Section mess Subsidi Act. The Loan and tax increment financing pro, the assistance ' A � ---�— p �a�rity s � ess subsidy "because it is assistance redevelop ollute — contamma ts"and"assistance for redevelopment when the recipie. investment urch f the site and in site preparation is 70 percent or more of the as ` 's current yea " imatec ket value"as such terms are defined in Minnesota Statutes, , 'on 116J 993, ivisis 3 and 3(4)and 3(17).Applying that formula results in the followin urchase of$ 25,208 plus Site Preparation Costs of$728,204, divided by Assessors Cu rr arket V of$1,998,000 = 158%. Therefore,the provisions of Minnesota Statutes; Sections .993 ough 1 I6J.995 are not applicable. Se 3.4. Assessment Agreement. The Assessment Agreement shall be executed by the Dev per and the Authority as of the date hereof, and the Developer shall cause the Assessment Agreement and an executed Assessor's Certificate, in the form attached thereto,to be recorded against the Development Property. 7 ARTICLE IV EVENTS OF DEFAULT Section 4.1. Events of Default Defined. The following shall be"Events of Default"under this Agreement and the term"Event of Default" shall mean whenever it is used in this Agreement any one or more of the following events: (a) Failure by the Developer to cause the construction of the:, roject to be substantially completed pursuant to the terms, conditions and limitat' Lthis Agreement; (b) Failure of the Developer to observe or perform covenant, condition, obligation or agreement on its part to be observed or perform. ndet Agreement; (c) A proceeding under any bankruptcy,reo �' i5n, arrang t of debt, insolvency, readjustment of debt or receivership law. " `statute is filed(i)agai a Developer and an adjudication or appointment is made or or relief i&-&ntered,or suc ding remains undismissed for a period in excess of sixty( f ys, by the Devel r; or the Developer makes an assignment for the benefit of credit a Developer takes any corporate action to authorize any of the foregoing; (d) The Developer becomes ink fails genera y its debts as they become due; (e) The Develo voluntarily or i arily d es or is dissolved, or terminates or is terminated;or � - (f) A re rustee ° iquidator of veloper, or of the Project, or part thereof, shall be appointed in ann T eed \ bxought again e Developer, and shall not be discharged within sixty(6 s after 1151 the Developer consents to or acquiesces in such appo Sectio R ids on Default. Whenever any Event of Default referred to in Se 4.1 occurs an t ontin0h,the Authority, as specified below,may take any one or more o ollowing aces after the giving of thirty (30)days' written notice to the Developer,b ,y if the E t of Default has not been cured within said thirty (30) days or such longer per`b -,time a is reasonably necessary to cure the default,not to exceed 120 days, provided tha eloper commences the cure with the 30-day period and diligently pursues the same to c'apletion: (a) The Authority may cancel and rescind the Agreement. (b) The Authority may withhold any and all payments under the Tax Increment Note and may terminate the Tax Increment Note. (c) The Authority may suspend its performance under this Agreement until it receives assurances from the Developer, deemed adequate by the Authority,that the Developer will cure its default and continue its performance under this Agreement. 8 (d) The Authority may take any action, including legal or administrative action, in law or equity,which may appear necessary or desirable to enforce performance and observance of any obligation, agreement, or covenant of the Developer under this Agreement. Section 4.3. No Remedy Exclusive. No remedy herein conferred upon or reserved to the 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 statute. No delay or omission to exercise any right or power accruing on any default shall impair any such right or power or shall be construed to be a waiver c but any such right and power may be exercised from time to time and as often as in e deemed expedient. Section 4.4. No Implied Waiver. In the ent a\ eement contained in this Agreement should be breached by any party and the e waived" other party, such waiver shall be limited to the particular breach so wa an shall not be ed to waive any other concurrent, previous or subsequent breach h nder. Section 4.5. Agreement to PayA" ev s 116 and Ex ense enever any Event of Default occurs and the Authority shall emprz' orneys or incur other expenses for the collection of payments due or t , ecome due or for° nforcement or performance or observance of any obligation or agreem the part of the ,doper herein contained,the Developer agrees that it shall, on deman ay to the A ' ' the reasonable fees of such attorneys and such other expenses so icurr Author. Section ,,, Indemnificat .n Autho (a) The D oper re s from and Nenants and agrees that the Authority, its governing body metrib fficers' ents, includi independent contractors, consultants and legal counsel, servan ,,k; e ; thereof reinafter, for purposes of this Section, collectively t mfie es liable for and agrees to indemnify and hold harmless \\ .Parti inst any loss or damage to property or any injury to or death of anyk; son occurrin� about esulting from any defect in,the Project provided, how At he Developer shy- of be red to indemnify any Indemnified Party or be liable for Lil any claim ' h results fro- negligence or malfeasance of such Indemnified Party. (b) evelopeg grees to protect and defend the Indemnified Parties, and further agrees to hold they'"° said'Armless, from any claim, demand, suit, action or other proceeding whatsoever by any p r entity arising or purportedly arising from the actions or inactions of the Developer(or other ersons acting on its behalf or under its direction or control)under this Agreement, or the transactions contemplated hereby or the acquisition, construction, installation, ownership, and operation of the Project;provided,that this indemnification shall not apply to the warranties made or obligations undertaken by the Authority in this Agreement or to any actions undertaken by the Authority which are not contemplated by this Agreement but shall, in any event, apply to any pecuniary loss or penalty (including interest thereon from the date the loss is incurred or penalty is paid by the Authority at a rate equal to the Prime Rate)as a result of the Project, as constructed and operated by the Developer, causing the Tax Increment District to not qualify or cease to qualify as a"redevelopment district"under Section 469.174, subdivision 10, 9 of the Tax Increment Act, or to violate limitations as to the use of Tax Increments as set forth in Section 469.176, subdivision 4j, of the Tax Increment Act. (c) All covenants, stipulations,promises, agreements and obligations of the Authority contained herein shall be deemed to be the covenants, stipulations, promises, agreements and obligations of the Authority and not of any governing body member, officer, agent, servant or employee of the Authority, as the case may be. ARTICLE V ADDITIONAL PROVISIONS Section 5.1. Restrictions on Constructi 111 se. eveloper agrees for itself, its successors and assigns and every successor in i re to the pment Property, or any part thereof,that the Developer and such success n signs shall' te, or cause to be operated,the Project as provided in Section 3.4 w eof and shall devote th elopment Property to, and in accordance with,the uses spy in this K" eement. The per further agrees for itself, its successors and assigns,t ' ac on, construct and operation of the Development will be carried out in acc` with all applicable federal, state and local laws. th Section 5.2. Conflict st. No mem e governing body or other official of the Authority shall have ark In terest, dir or indirect, in this Agreement,the Development Property or th,A roje o act, agreement or other transaction contemplated r or be unde '" thereu r with respect thereto,nor shall any such member of t body or oth .,official p icipate in any decision relating to the Agreement whi ects his' der personal "terests or the interests of any corporation, partnership or asses'I whi e or she is di or indirectly interested. No member, official or employee of th '" be per ally liable to the Authority in the event of any default by the Loper `'' sor or on any obligations under the terms of this Agr "ent r Section"I Tit Articles and Sections. Any titles of the several parts, articles a'" „ ctions of the eemet are inserted for convenience of reference only and shall be disregarn construin interpreting any of its provisions. ion 5i" Notices and Demands. Except as otherwise expressly provided in this Agreement, , demand or other communication under this Agreement by any party to any other shall be s iciently 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 Developer is addressed to or delivered personally to: (b) in the case of the Authority is addressed to or delivered personally to the Authority at: 10 Housing and Redevelopment Authority 8080 Mitchell Road Eden Prairie,Minnesota 55347 Attention: Executive Director of HRA or at such other address with respect to any such party as that party om time to time, designate in writing and forward to the other, as provided in this S on. Section 5.5. Counterparts. This Agree rn xecuted in any number of counterparts, each of which shall constitute one and th sa instru Section 5.6. Law Governing. T ' "Agreement will be \ v ed and construed in accordance with the laws of the Stat a Section 5.7. Expiration. This Agr"" " al xpire on February 1, 2023, unless earlier terminated or rescinded in accordance with` rms. Section 5.8. Provis �:; vivin Rescisst r Ex iration. Sections 4.5 and 4.6 and the Developer's payment obli a r Section 3 survive any rescission, termination or expiration of this Agreemen*ith r ,or arcs' g out of any event, occurrence or circumstance existing prior to Jhe d theX-100 IF- Ilk m 11 IN WITNESS WHEREOF, the Authority has caused this Agreement to be duly executed in its name and on its behalf and its seal to be hereunto duly affixed, and the Developer has caused this Agreement to be duly executed in its name and on its behalf, on or as of the date first above written. THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF EDEN PRAIRIE By Its Chair . By Its` tive D ctor [This is a signature page to the Development Agreement by and between the Housing and Redevelopment Authority in and for the City of Eden Prairie and 1 12 Sy Its w� » w\» . +. _ <© yf�y [This is a signature page to the Development Agreemeth and between the Housing and Redevelopment Authority in and for the City o Eden Prairie and � ] 13 £XHI IT A LEGAL DESCRIPTION <� »� A-! EXHIBIT B FORM OF TAX INCREMENT NOTE No.R-1 UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF HENNEPIN CITY OF EDEN PRAIRIE HOUSING AND REDEVELOPMEN T TY IN AND FOR THE CITY OF E;, TAX INCREMENT REV E NOTE OF 2006 ( JECT PRINCIPAL AMOUNT: $728,204 INTEREST RATE: 6.5% r The Housing and RedevelopmeiK" ity in and City of Eden Prairie, Minnesota (the "Authority"), hereby ackno' e to be in ed and, for value received, hereby promises to pay to I I or its registered assigns (the "Registered Owner"), but the manner, ', _ e times, the sources of revenue, and to the extent hereinafter I principal a ount state above with interest, from the date hereof, at the rate pe, um stat ove. This Tax Increm' ev , to of 2 \. ( Project) (or "Note") is issued pursu provi oft a evelopment Agreement, dated as of August 1, 2006, as dam ame from time to time (the "Development Agreement"), by and betwe he Housing Rede�t in t Authority in and for the City of Eden Prairie, Mi :the"Authori ' d (the"Developer"). Prov" that the De per has submitted evidence to the Authority that costs of the Site Improvements rations�Alvided defined in the Development Agreement) have been incurred and paid by the Devel as in the Development Agreement, the principal and interest amounts due under t � e(the"Note Payment Amounts") shall be payable on August 1, 2008, and on each February d August 1 thereafter to and including Februaryl, 2023, or, if the first should not be a Business Day (as defined in the Development Agreement) the next succeeding Business Day(the"Note Payment Dates"). On each Note Payment Date the Authority shall pay, by check or draft mailed to the person that was the Registered Owner of this Note at the close of the last Business Day preceding such Note Payment Date, eighty percent (80%) of the Tax Increments (as hereinafter defined)received by the Authority from the Tax Increment District(as hereinafter defined) since the preceding Note Payment Date or, in the case of the first Note Payment Date, prior to such first Note Payment Date, as provided in the Development Agreement. All payments shall be first applied to interest accrued on the Note and then to the B-1 unpaid principal of the Note. The Authority shall not be required to make any payments on the Note subsequent to February 1, 2023, and any balance of principal and interest remaining unpaid subsequent to the payment made on February 1, 2023 shall be deemed forgiven by the Developer. In no event shall the total Note Payment Amounts paid under this Note exceed the maximum amount of$1,171,377. Interest on this Note will compound semi-annually. Notwithstanding the interest rate provided herein, the total amount of capitalized interest that shall be payable by the Authority under this Note is limited to, shall not exceed, and shall not be less tha $100,985 as provided in the Tax Increment Financing Plan for Tax Increment Financing (Re " ent) District No. 20 (Superior Office Center Project), dated August 1, 2006. The Note Payment Amounts due hereon shall be pay a sole in a portion of the tax increments, less twenty percent (20%), from the Devel , , e Prope ' hin the Authority's Tax Increment Financing(Redevelopment) District N;.IF "Tax Incre District")within its Redevelopment Project Area No. 6, which are p, 'to the Authority and the Authority is entitled to retain pursuant to the provisions o z. sota S� utes, Sections 4 through 469.1799, as the same may be amended or sup `_ me time to e (the "Tax Increments"). This Note shall terminate and be of no orce and effect following the last Note Payment Date defined above, on iy date upon whi Authority shall have cancelled and rescinded the Development Agree ursuant to S 4.2(a) thereof or the Note pursuant to Section 4.2(b) of said Develop ement, or o ` ate that all principal and interest shall have been paid in full, wAheve' earlies The Authority makes no representation or covenant, express or implies th g t(80%) of the Tax Increments will be sufficient to pay,J e or in part,- amounts 'ich are or may become due and payable hereunder. The Authority' ent *i'ligations here eY shall be further conditioned on the fact that no Event of Defau d ,,eyelop t Agreement shall have occurred and be continuing pay is of ,', due hereunder, but such unpaid amounts shall become able i vents 'efault shall thereafter have been cured; and, further, if pursu to the occurr of arkk �of Default under the Development Agreement the Aut1 cts to cance Development Agreement, the Authority shall have no further de obligation u°" ' this4 ote whatsoever. Reference is hereby made to all of the provisions o evelopme' greement, including without limitation Section 3.3 thereof, for a fuller statement e rights d obligations of the Authority to pay the principal of and interest on this Note, and s ro ions are hereby incorporated into this Note as though set out in full herein. This Note is a special, limited revenue obligation and not a general obligation of the Authority and is payable by the Authority only from the sources and subject to the qualifications stated or referenced herein. This Note is not a general obligation of the Housing and Redevelopment Authority in and for the City of Eden Prairie, Minnesota, and neither the full faith and credit nor the taxing powers of the City are pledged to the payment of the principal of and interest on this Note and no property or other asset of the Authority, save and except eighty percent (80%) of the above-referenced Tax Increments, is or shall be a source of payment of the Authority's obligations hereunder. B-2 This Note is issued by the Authority in aid of financing a project pursuant to and in full conformity with the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Sections 469.174 through 469.1799. This Note may be assigned only with the consent of the Authority, which consent must not be unreasonably withheld. In order to assign the Note, the assignee shall surrender the same to the Authority either in exchange for a new fully registered note or for transfer of this Note on the registration records for the Note maintained by the Authority. Each permitted assignee shall take this Note subject to the foregoing conditions and subject toy 11 provisions stated or referenced herein. IT IS HEREBY CERTIFIED AND RECITED that , 0 conditions, and things required by the Constitution and laws of the State of Minn a to :ne, to have happened, and to be performed precedent to and in the issuanc f is Not' ' e been done, have happened, and have been performed in regular and d o time, and ` ` r as required by law; and that this Note, together with all other ind dness of the Authority ,r anding on the date hereof and on the date of its actual issuance ivery, s not cause the tedness of the Authority to exceed any constitutional or statutory, ti eon. IN WITNESS WHEREOF, the ousing and Re ment Authority in and for the City of Eden Prairie, Minnesota, by its1 bard of Commissi , has caused this Note to be executed by the manual signatures of its xecutiv sand has caused this Note to be issued on and dated as of August 1, 20 Executive Director it da0111 � y N,V B-3 CERTIFICATION OF REGISTRATION It is hereby certified that the foregoing Note, as originally issued on , 2006, was on said date registered in the name of , and that, at the request of the Registered Owner of this Note, the undersigned has this day registered the Note in the name of such Registered owner, as indicated in the registration blank below, on the books kept by the undersigned for such purposes. NAME AND ADDRESS OF DATE OF SIGNATURE OF REGISTERED OWNER REGISTRATION ,Win, ECRETARY 32006 B-4 EXHIBIT C COMPLIANCE CERTIFICATE The undersigned officer of , does hereby certify that during the calendar year ending on the December 31 preceding the date of this Certificate, the Project(as defined in the Development Agreement, dated as of , 2006,between the Housing and Redevelopment Authority in and for the City of Eden airie and )was operated in compliance;' e provisions of Section 3.4 of said Development Agreement.Attached hereto is a mg, as of the end of said calendar year, of the units in the Project which are designated w Income Units, which listing sets forth, for each such Low Income Unit, (i)the mo Irren fled income for the individual or family occupying(or most recently occupyi s Low e Unit and(ii)the current rent charged for such Low Income Unit. Dated this day of ,,z C-1 EXHIBIT D FORM OF ASSESSMENT AGREEMENT THIS AGREEMENT is dated as of August 1,2006 and is between the HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF EDEN PRAIRIE, MINNESOTA, a public body corporate and politic organized and existing under the laws of the State of Minnesota(the"Authority"), and , a Minnesota (the"Developer"). IN CONSIDERATION OF the mutual covenant nefits herein described, the Authority and the Developer recite and agree as follows: : Section 1. Recitals. 1.01. Project Plan. The Authority eretofo' .developed a R"" ment Plan (the"Project Plan")outlining certain developin tiviti - be undertaken d has adopted a Redevelopment Plan therefor(the"Redevelo an" which inclu es the construction of a (the "Project")and related site improvements:" other improvem f a public nature. The Project is to be owned by the Developer. 1.02. Tax Increment FinanciiDistri�` ant tithe Minnesota Tax Increment Financing Act, esota Statutes,? ns 46 3 o 469.1799, as amended(the "TIF Act"),the City and, _ ity have ap `;,'ved a tax rement financing plan(the "Financing Plan"), w is the ` " 4 sed metho "fir financing the development activities currently proposed dertak ursuant to th ,reject Plan relating to the Project. Pursuant to the Financing Plan, Taxi; e ancing(R- evelopment)District No.20 (the"District") has been establ It as a re \pm i eider the TIF Act. 1.03. t enta The Authority and the City of Eden Prairie,Minnesota (the" ", have each a 'zed a � ected their respective officers to take all actions necessa" plement an outs e Project Plan and the Financing Plan. The Project Plan and the Fin Plan propdki,that the Authority finance certain costs of or related to the R Project,payab" in tax incr'gnent(as defined in the TIF Act)derived from the District("Tax Increment'). 1.04. D"j opment Agreement. The Authority and the Developer have entered into a Development A reement, dated as of August 1, 2006 (the "Development Agreement'), which provides that the Developer will improve the real property described in Exhibit A hereto (the"Land")by the construction of the Project thereon. The Development Agreement provides that upon the execution and delivery of the Development Agreement,the Authority and Developer are to enter into this Assessment Agreement. D-1 Section 2. Minimum Market Value. 2.01. Agreed Upon Minimum. The Developer agrees that the minimum market value of the Land and the Project for ad valorem tax purposes, for the assessment made as of January 2, 2007, shall be not less than$4,100.000.00, and for the assessment made as of January 2, 2008, and continuing throughout the term of this Assessment Agreement, shall be not less than $12,600,000.00, and shall not be reduced by any action taken by the Developer(other than a deed in lieu of, or under threat of, condemnation by the City of Eden Prairie, Hennepin County or other condemning authority),to less than the said amount, and that d ing the term of this Assessment Agreement no reduction of the market value therefor be T' ' minimum market value shall be sought by the Developer or granted by any public o ial or court except in accordance with Minnesota Statutes, Section 469.177, subdivi is minimum market value shall apply only to the Land,the Project and any other ilities ted on the Land. In the event of involuntary conversion of the Land and the c r any r (other than condemnation by a public entity),the minimum mark lue all not be r d to an amount less than said minimum market value. The Developer acknowledges and agre t tl and the Pro' ct are subject to ad valorem roe taxation and that such roe "nstitute taxes on"realproperty" p p rty p P rtY (as provided in Section 469.174, subdivisions 4 and 7(d) o W` .IF Act) and,to the extent reflectingnet tax capacity rates of taxing 'ctions levied a the captured net tax capacity P ty g P P tY of the District,tax increment. 2.02. Higher Market Value 1�1 thin ment Agreement shall limit g g the discretion of the coun or of the Crt i�. den Prai or any other public official or body having the duty t errYlRWl e market vie of the Lind,the Project and other facilities on the Land for ad v, tax p ses,to assig o the Land,the Project or to any other improvements cons�ruc a the d, on an i minatory basis and treated fairly and equally with all other prop An the pective counties, a market value in excess , - of the mini value ifie iti 2.01. The Developer shall have the normal remedies sable a law ontest any estimated assessor's estimated value in excess of said m' um market v but o ,, e extent of the excess. Ab ,. d4 2.03. Substa a`1 Co m 'letion. For purposes of this Assessment Agreement and the determin of the mar value of the Land and the Project for ad valorem tax purposes, the Developer a that theoject shall be deemed to be completed in accordance with the Development Agr :rb t a August 1, 2006 (the required date of completion), whether in fact completed or not. F Section 3. Filing and Certification. 3.01. Assessor Certification. The Authority shall present this Assessment Agreement to the city assessor of the City of Eden Prairie and request such assessor to execute the certification attached hereto as Exhibit C. The Developer shall provide to the assessor all information relating to the Land and the Project requested by the assessor for the purposes of discharging the assessor's duties with respect to the certification. D-2 3.02. Filing. Prior to the recording of any mortgage, security agreement or other instrument creating a lien on the Land and in any event not less than 30 days after the execution of this Assessment Agreement,the Developer shall cause this Assessment Agreement and a copy of Minnesota Statutes, Section 469.177, subdivision 8, attached hereto as Exhibit B,to be recorded in the office of the County Recorder or Registrar of Titles of Hennepin County, and shall pay all costs of such recording. Section 4. Relation to Development Agreement. The covenants and agreements made by the Developer in this Assessment Agreement are separate fro d in addition to the covenants and agreements made by the Developer in the Developme, ement and nothing contained herein shall in any way alter, diminish or supersede the. ies and obligations of the Developer under the Development Agreement. Section 5. Miscellaneous Provisions. 5.01. Binding Effect. This Assessm Agreement shall inure e benefit of and shall be binding upon the Authority and the er and eir respective s ors and assigns, and upon all subsequent owners of the Land w e Pr 5.02. Severability. In th event any provisi ` this Assessment Agreement shall be held invalid or unenforceable b A ourt of compet isdiction, such holding shall not invalidate or render unenforceable an vision hereo . 5.03. Amendments Chan es d M s cept as provided in Section 5.04,this Assessme reement may ende y of its terms modified only by written amendment aut xecuted by e Authori and the Developer and otherwise in compliance with S,. on 469 subdivision of the Act. 5.04. Fu ssuraiwes,and Corre a Instruments. The Authority and the Developer a they w m xecute, acknowledge and deliver, or cause to be execut 5 d or Bred, such°supplements hereto and such further instruments as may, sonably be d fo I cting any inadequate or incorrect description of the Land or th "I act, or for ca . ut they messed intention of this Assessment Agreement. z ,r 05. ExecutCounterparts. This Assessment Agreement may be simultaneousl uted in s "ral counterparts, each of which shall be an original and all of which shall cons ti ; ;` but o -and the same instrument. 5.06. A'"- 'icable Law. This Assessment Agreement shall be governed by and construed in accordance with the internal laws of the State of Minnesota. 5.07. Captions. The captions or headings in this Assessment Agreement are for convenience only and in no way define, limit or describe the scope or intent of any provisions or Sections of this Assessment Agreement. 5.08. Effective Date. This Assessment Agreement shall be effective as of August 1, 2006. D-3 5.0. Termination Date. This Assessment Agreement sa !ltrmin&cu o the . termination o the Disrticin accordance with Minnesota Statutes, Section 4917, subdivision £ R!% Definitions. Terms used with inilgcpitlaletters but not defined herein shall have tomeanings givensc terms in the Development Agreeme t,unless the co me! hereof clearly rgirsotherwise. + ON; wa Dk IN WITNESS WHEREOF,the Authority has caused this Assessment Agreement to be executed in its name by its duly authorized officers and the Developer has caused this Assessment Agreement to be executed in its corporate name. HOUSING AND REDEVELOPMENT IN AND FOR THE CITY OF EDEN PRAIRIE, MINNESOTA By Its Chair By Its Executive r STATE OF MINNESOTA ) COUNTY OF HENN ) The fore ` mstr" ent was ackn dged before me this day of , 2006, 3a ;sy ,the Chair and Execu ctor respectively of the Housing and Redevelop e t Au#i ",ft ands �the City of Eden Prairie,Minnesota, a public body corporate and p\ organized and Ming u Otte laws of the State of Minnesota, on behalf of the public Notary Public D-5 By Its STATE OF MINNESOTA ) ss. COUNTY OF ) The foregoing instrument was ac „ged be a me this = 20_by of , a Minnesota r ,on behalf of the „ blic il tilta, mb R D-6 EXHIBIT A DESCRIPTION OF LAND A; hs a D-7 EXHIBIT B COPY OF MINNESOTA STATUTES, SECTION 469.177, SUBDIVISION 8 Assessment agreements. An authority may enter into a written assessment agreement with any person establishing a minimum market value of land, existing improvements, or improvements to be constructed in a district, if the property is owned or will be owned by the person. The minimum market value established by an assessment agreement may be fixed, or increase or decrease in later years from the initial minimum market value. If an a ement is fully executed before July 1 of an assessment year,the market value as provided u agreement must be used b the county or local assessor as the taxable market value o y ty e property for that assessment. Agreements executed on or after July 1 of an asse ar become effective for assessment purposes in the following assessment year. An a , smen ement terminates on the earliest of the date on which conditions in the assess a ement ination are satisfied,the termination date specified in the agreem ;or t date when' y.,� crement is no longer paid to the authority under section 469.176, divisional. The assessor , , regiment shall be presented to the county assessor, or city s havin a powers of the my assessor, of the jurisdiction in which the tax incremen."" ci ict and the perty that is the subject of the agreement is located. The assessor sha ew the plans and specifications for the improvements to be constructed,revigw the market valu viously assigned to the land upon which the improvements are to be c ted and, so long he minimum market value contained in the assessment agreement ap udgment o " °ssessor,to be a reasonable estimate, shall execute the follo g ce upon e agreement: The under ' sessor, bein ally respo" Yble for the assessor_ of th '" .ve describe roperty, certifies that the mar es assi . to the land d improvements are reasonab The assess,, t sh filed ford and recorded in the office of the county recorder.,"" the registr" tles h county where the real estate or any part thereof is situa, fter the agree'" beco fictive for assessment purposes,the assessor shall value th I", Aerty under se 273.1 except that the market value assigned shall not be less than the mi in market va'" established by the assessment agreement. The assessor may assign a mark ue to the sperty in excess of the minimum market value established by the assessment agree ' " The ner of the property may seek,through the exercise of administrative and I- dies, a reduction in market value for property tax purposes,but no city assessor, county a ' sor,county auditor, board of review, board of equalization, commissioner of revenue, or court of this state shall grant a reduction of the market value below the minimum market value established by the assessment agreement during the term of the agreement filed of record regardless of actual market values which may result from incomplete construction of improvements, destruction, or diminution b cause, insured or uninsured, P Y any except in the case of acquisition or reacquisition of the property by a public entity. Recording an assessment agreement constitutes notice of the agreement to anyone who acquires any interest in the land or improvements that is subject to the assessment agreement, and the agreement is binding upon them. D-8 An assessment agreement may be modified or terminated by mutual consent of the current parties to the agreement. Modification or termination of an assessment agreement must be approved by the governing body of the municipality. If the estimated market value for the property for the most recently available assessment is less than the minimum market value established by the assessment agreement for that or any later year and if bond counsel does not conclude that termination of the agreement is necessary to preserve the tax exempt status of outstanding bonds or refunding bonds to be issued,the modification or termination of the assessment agreement also must be approved by the governing bodies of the county and the school district. A document modifying or terminating an agreement, i , ding records of the municipality, county, and school district approval, must be filed for r r : The assessor's review and certification is not required if the document terminate "" agreement. A change to an agreement not fully executed before July 1 of an assessment y is ffective for assessment purposes for that assessment year. If an assessment agreeme ""` as be dified or prematurely terminated, a person may seek a reduction in market val t hrough xercise of any administrative or legal remedy. The remedy may not vide` or reduction market value below the minimum provided under a modified ass ent agr ement that rem n effect. In no event may a reduction be sought for a year of r the cuftnt taxes payabl r. AI 0 41 D-9 EXHIBIT C ASSESSOR'S CERTIFICATE The undersigned, being the duly qualified and acting assessor of the City of Eden Prairie,Minnesota, hereby certifies that. 1. 1 am the assessor responsible for the assessment of the Land described in the foregoing Exhibit A; 2. I have read the foregoing Assessment Agree ted as of August 1, 2006; 3. 1 have received and read a duplicate on f the pment Agreement referred to in the Assessment Agreement; 4. I have received and reviewed the hitecturaland engineers n nd specifications for the Project agreed to be construe the La ' ursuant to the elopment Agreement; 5. I have received and rewed an estimate ed by the Developer of the cost of the Land and the Project to be co ri' thereon; 6. I have reviewed the markvalu sly assi ed to the Land on which the Project is to be constructed, and the minimum arka signed to the Land and the Project by the Assessmen ent is areas le estima , and 7. I certify t the markets lue assigned to the Land and the Project described on the forego ibi by the Asses ._nt Agreement is reasonable and the market value assigned to the Lan the;\ sessment January 2, 2007, shall be not less than$4,10tetierrri for t essme� „`as of January 2, 2008, and continuing through Asse Iant Agreement, shall be not less than $12,600,000.00. Dated City Assessor, City of Eden Prairie,Minnesota D-10 Springsted Incorporated 380 Jackson Street, Suite 300 VM Saint Paul,MN 55101-2887 41 Tel: 651-223-3000 Fax: 651-223-3002 www.springsted.com MEMORANDUM TO: David Lindahl, Manager of Economic Development Janet Jeremiah,Community Development Director FROM: Mikaela Huot,Assistant Vice President/Consultant Paul Steinman,Vice President/Consultant DATE: July 25,2006 SUBJECT: United Properties Tax Increment Financing and Development Agreement The purpose of this memo is to provide information related to the Housing and Redevelopment Authority in and for P P P 9 P ty the City of Eden Prairie (HRA) and City Council approval of a Tax Increment Financing Plan and Redevelopment Plan and Development Agreement with United Properties for the redevelopment of the former Physical Electronics building located at 6509 Flying Cloud Drive. When Tax Increment Financing is involved in a redevelopment project,actions by the public entity(HRA and/or City Council)will have two primary parts: • Consideration of the Tax Increment Financing(TIF)Plan and Redevelopment Plan ■ Gives the HRA/City authority to utilize the Tax Increment Financing tool and to provide a TIF subsidy to a Developer/project • Consideration of the Development Agreement ■ Specifies the mechanics of providing a subsidy and the amount of such subsidy 1)Consideration of a Tax Increment Financina(TIF) Plan and Redevelopment Plan The Tax Increment Financing Plan for Tax Increment Financing District No.20 is a newly proposed redevelopment district that is anticipated to be adopted on August 1,2006. The Redevelopment Plan for Redevelopment Project Area No.6 is a newly proposed project plan that is also anticipated to be adopted on August 1,which provides the underlying statutory authority for a public body to create a Tax Increment Financing Plan. The TIF Project includes the acquisition and demolition of an existing building complex that was found to be substandard in 2005. The Pub:lc Sector Adv'sncs City of Eden Prairie, Minnesota Summary Memo, TIF 20 and Development Agreement July 25, 2006 Page 2 developer is proposing to construct a 91,000 square foot office building called Superior Office Center. It is proposed that tax increment will be used to reimburse the developer for a portion of the site improvements/preparations associated with redevelopment of the site. The HRA will be the authority of the district and asked to approve the creation of the TIF Plan and Redevelopment Plan on August 1. MN Statute requires the City Council to hold the public hearing and pass a resolution approving creation even though the approving body is the HRA. LHB, a local planning/architectural firm,was hired in 2005 to inspect and evaluate the property within the proposed TIF(Redevelopment)District No.20. The building was determined to have met the statutory requirements necessary to be found substandard as described in the Tax Increment Financing law. The HRA passed a resolution on November 1, 2005 which found the building to be substandard, prior to its demolition late in 2005. A final building analysis report has been completed and is kept on file in the City offices. The term of TIF District No. 20 is estimated to be 15 years. The budget contained in the plan is $2,783,941 and includes the following public costs: Site Improvement/Preparation Costs of$728,204 ➢ Loan principal and interest payments,including capitalized interest,of$1,171,377 ➢ Administrative expenses(1%)of$20,557 ➢ Pooling for redevelopment/transportation/affordable housing(19%)of 863,803 The revenues of the district total$2,783,941 and are as follows: ➢ Projected tax increment of$2,055,737 ➢ Loan proceeds of$728,204 Approval of the TIF and Redevelopment plans does not constitute an agreement between the HRA and United Properties to provide a subsidy to the project rather, it provides the mechanism to collect tax increment due to an increase in value of the redevelopment property. 2)Consideration of the Development Agreement between the HRA and United Properties The Development Agreement between United Properties and the HRA contains the provisions of the proposed development and specifies the amount of the subsidy and how it is to be provided. The development agreement contains the following primary points related to how much subsidy is to be provided and the provisions under which such subsidy is provided: • The principal amount of subsidy is$728,204. • The principal amount will be paid to the Developer by the City over a term of 15 years and will include interest at 6.5%. City of Eden Prairie, Minnesota Summary Memo, TIF 20 and Development Agreement July 25, 2006 Page 3 • The maximum Note payment amounts over the term are$1,171,377. • Should the Developer sell the project anytime prior to February 1, 2023, the Developer will repay to the Authority the total amount of principal and interest paid to the Developer. • When the rental space is 95% leased, or 18 months passes from completion of construction, the leases shall be provided to the Authority and a re-examination of the lease rates will be undertaken. If there is greater than$1.25 psf variation above an average triple net lease rate of$14.50,then an IRR analysis shall be completed using current project information,including actual costs. If the analysis results in an IRR with assistance of less than 15% then the project will continue to qualify for the same TIF subsidy,and if greater P J q fY than 15%with assistance, such assistance shall be adjusted accordingly so that the IRR does not exceed 15%. • The principal amount plus interest shall be solely payable to the Developer from 80% of Tax Increments received. • The Business Subsidy law does not apply because of the provision stating such assistance is not a business subsidy if it is "assistance for redevelopment when the recipient's investment in the purchase of the site and in site preparation is 70 percent or more of the assessor's current year's estimated market value". As stated in the development agreement,the Developer's acquisition and site preparation is 158% of the assessor's current year's estimated market value. Springsted completed an analysis of the project's sources and uses, including an internal rate of return analysis, as part of the detailed project review. The results of that analysis are included in a memo to City Staff dated July 25, 2006 entitled"United Properties Request for Financial Assistance—Final Internal Rate of Return Analysis". Springsted Incorporated 380 Jackson Street, Suite 300 Saint Paul,MN 55101-2887 W Tel: 651-223-3000 Fax: 651-223-3002 mm.springsted.com MEMORANDUM TO: David Lindahl, Manager of Economic Development Janet Jeremiah,Community Development Director FROM: Mikaela Huot,Assistant Vice President/Consultant Paul Steinman,Vice President/Consultant DATE: July 25,2006 SUBJECT: United Properties Request for Financial Assistance—Final Internal Rate of Return Analysis The purpose of this memo is to outline the financial components of the United Properties proposal to construct an office building on approximately 10.36 acres within the proposed Tax Increment Financing District No.20. The developer estimates the total cost of the project to be$14,034,837. The developer's request for tax increment financing assistance is$1,044,244. City staff will recommend to Council/HRA that the developer be reimbursed solely for demolition and asbestos removal costs,which the developer estimates to be$728,204. The annual amount of gross tax increment based upon a final market value of$12,683,000(land-$1,998,000,building- $10,685,000)as estimated for taxes payable 2009 is approximately$136,191. We recommend the City retain 20%of the tax increment for pooling for affordable housing,redevelopment and transportation costs and related administrative expenses,with the remaining 80%pledged for payment to the developer. Assuming a present value rate of 6.50%we estimate it will take approximately 12 years to pay off a TIF Note of$728,204,including capitalized interest. The City's current Tax Increment Policy limits the amount of assistance to 15 years. Our assumptions also include a 0%annual market value inflator. But-For Analysis The but-for test is used to determine whether or not a project will proceed as proposed without the use of public dollars. To complete this analysis we examined two 10-year commercial project pro-formas,one showing a result if the developer receives the subsidy and one showing a result if the developer does not receive a subsidy. The following assumptions and parameters were used in the proformas: r Revenues and expenses provided by developer o Total acquisition costs were reduced by the amount of accrued interest,$280,460,since the time the property was purchased,subsequently increasing the amount of equity required. o Total acquisition costs were reduced by the amount of real estate taxes paid,$75,101,since the property was purchased,subsequently increasing the amount of equity required. o Total acquisition costs used in our analysis did not include$60,000 of additional other costs indicated by the developer as acquisition costs. ➢ Lease rates provided by developer o $14.50 per square foot for office space PublIc Sector AdWsors City of Eden Prairie, Minnesota Final IRR Analysis,TIF 20 July 25,2006 Page 2 Vacancy rates provided by developer o 5% ➢ Equity investment of$3,119,276 without assistance(estimated) r Equity investment of$2,391,276 with assistance(estimated) ➢ Annual inflation rates as provided by developer applied to rental incomes 3%inflation rates applied to expenditures ➢ Present value rate equal to 6.50%(developer financing) > Developer provided financing terms of 6.50%,$10.5 million, 30 year term—paid in full at time of sale Springsted has reviewed the developer's projected lease rates and finds them to be within a reasonable range of rates in the Eden Prairie and surrounding area market. Springsted performed an industry standard analysis using the Internal Rate of Return mechanism to estimate the proposed project's rate of return. ♦ Internal Rate of Return(IRR) o measures the average annual yield on an investment The following table summarizes the results of the IRR analysis: Without Assistance With Assistance Internal Rate of Return ear 11) 9.12% 12.79% Calculated Sale $11,980,291 $13,123,038 Developers are typically interested in the cash on cash rate of return and return on investment to determine the profitability of income producing properties. The cash on cash method is an annual test and considers the before-tax cash flow as a measure of the equity invested to determine the developer's cash return. An investor is typically interested in the internal rate of return of the project to determine the return on their initial investment,generally over a longer period. It is our understanding that in this case United Properties holds the position as both developer and investor. The internal rate of return measurement is typically what is used by public agencies to determine the need for a subsidy. Our methodology is to estimate the calculations to help measure the projects financial performance with and without the assistance in order to meet the but-for analysis,which tests whether the project will proceed'but-for"the subsidy. Should the IRR lie below a reasonable range without a subsidy, we can assume the project will not move forward without such subsidy. Should the IRR lie within a reasonable range with a subsidy, we can assume the amount of subsidy tested is appropriate for the project. All such estimates should be viewed as general indicators of performance and not exact forecasts. The number of current and future variables affecting these estimates and actual results are great. Tenant improvement costs and lease commissions will occur at the start of the project before the rental incomes and potential tax increment revenues are fully realized. We estimate the overall cumulative cash flow of the project in the early years will be poor because of the upfront costs. Cash flow is not covered in the initial years but proves solid and growing through 10 years in both scenarios. Debt service coverage is estimated to be 151%without assistance and 164% with assistance in year three. The developer uses a 5% vacancy rate which is also a reasonable assumption for this type of product given the current market. City of Eden Prairie, Minnesota Final IRR Analysis,TIF 20 July 25,2006 Page 3 Without assistance this project is expected to generate an internal rate of return of 9.12%in 2017. The calculation of the internal rate of return includes a hypothetical sale of the building in year 11 (2017). Using the Net Operating Income of year 11 and a capitalization rate of 9.5%,the estimated sales price would be$11,980,291. Using those same assumptions, with the TIF assistance we calculated the project would generate an IRR of 12.79%, with a calculated sales price of$13,123,038. ♦ Capitalization Rate(Cap Rate o a ratio used to estimate the value of income producing properties United Properties has submitted an updated request for TIF assistance dated June 29,2006 for a total amount of $1,044,244. This includes the following project costs: Demolition and Asbestos Removal 728,204 Earthwork excess fill removal) 141,300 Retaining Wall 86,040 Storm Water Ponds 47,500 TIF Support Fees 16,200 Related Engineering Fees 25,000 Total $1,044,244 United Properties also provided the following updated estimated sources and uses of funds related specifically to the proposed redevelopment parcel: Sources of Funds Total Uses of Funds Total First Mortgage Amount 10,500,000 Land Acquisition 2,425,208 Equity 2,806,837 Construction/Demo Costs 9,054,144 TIF 728,000 Soft Costs 1,955,485 Development Fee 600,000 Total 14,034,837 1 Total 14,034,837 Conclusion The developer indicates in the request that assistance is necessary due to unusual land costs,including demolition of the existing blighted building,asbestos abatement and extensive site work including grading and removal of excess fill,retaining wall and storm water pond construction,and that TIF assistance will help to offset these unusual costs and make the project more feasible. In our analysis we used a land acquisition cost of$2,009,647,and an equity amount(with assistance)of$2,391,276 vs.what is shown above on the developers'sources and uses. The differential between the land acquisition cost we used and the developer's,is$280,460 in accrued interest,$75,101 in real estate taxes paid since purchase,and$60,000 of other additional costs borne by the developer. The calculated internal rate of return supports the fact that a subsidy may be necessary to provide a return adequate to complete the project as proposed. Without the assistance the timeline and type of project ultimately constructed may be adversely impacted. In conclusion,it appears such assistance is necessary to obtain the redevelopment results the City desires on the proposed site. Thank you for the opportunity to be of assistance to the City of Eden Prairie. Please contact us at(651)223-3000 or mhuot@sprinQsted.com and psteinman@springsted.com with any questions or comments. Housing and Redevelopment Authority in and for the City of Eden Prairie City of Eden Prairie, Minnesota Redevelopment Plan for Redevelopment Project Area No. 6 Dated: July 26, 2006 (DRAFT) Approved: Prepared by: SPRINGSTED INCORPORATED 380 Jackson Street,Suite 300 St. Paul, MN 55101-2887 (651)223-3000 WWW.SPRINGSTED.COM TABLE OF CONTENTS Section Pa e Ls ADefinitions............................................................................................................................... 1 BStatutory Authorization .......................................................................................................... 2 C Statement of Need and Public Purpose ............................................................................... 2 DStatement of Objectives ........................................................................................................ 2 E Boundaries of the Project Area ............................................................................................. 3 FProperty Acquisition ............................................................................................................ 3 GPayment of Public Costs ....................................................................................................... 3 H Environmental Controls;Land Use Regulations .................................................................. 3 1 Park and open Space to be Created .................................................................................... 3 J Property Acquisition and Proposed Reuse .......................................................................... 4 K Administration and Maintenance........................................................................................... 4 LRelocation .......................................................................................................................... 4 MAmendments .......................................................................................................................... 4 Mapof the Project Area............................................................................................................................. EXHIBIT I Housing and Redevelopment Authority in and for the City of Eden Prairie, Minnesota Section A Definitions The terms defined in this section have the meanings given herein,unless the context in which they are used indicates a different meaning: "Authori "means the Housing and Redevelopment Authority in and for the City of Eden Prairie. "Ci r" means the City of Eden Prairie, Minnesota, a municipal corporation and political subdivision of the State of Minnesota. "City Council"means the City Council of the City. "Coun "means Hennepin County,Minnesota. "Governing Body"means the Board of Commissioners of the Authority. "HRA Act" means the Minnesota Municipal Housing and Redevelopment Act, Minnesota Statutes, Sections 469.001 through 469.047,both inclusive. "Land Use Regulations"means all federal,state and local laws, rules, regulations,ordinances and plans relating to or governing the use or development of land in the Project Area, including but not limited to environmental, platting, zoning and building code laws,regulations and ordinances. "Project Area"means the geographic area of Redevelopment Project Area No.6. "Public Costs" means the costs of land acquisition, public and site improvements, repayment of debt service on tax increment bonds, and other eligible costs as set forth in the Redevelopment Plan and Tax Increment Financing Plan(s). "Redevelopment Plan"means the Redevelopment Plan for the Project Area. "State"means the State of Minnesota. "TIF Act"means Minnesota Statutes,Sections 469.174 through 469.1799,all inclusive. "TIF District"means any tax increment financing district presently established or to be established in the future in the Project Area. "TIF Plan"means the respective tax increment financing plan for each TIF district located within the Project Area. SPRINGSTED Page 1 Housing and Redevelopment Authority in and for the City of Eden Prairie, Minnesota Section B Statutory Authorization The HRA Act authorizes the Authority to exercise all the powers relating to a housing and redevelopment authority granted under Minnesota Statutes,Sections 469.001 to 469.047,or other law. It is the intention of the Governing Body, notwithstanding the enumeration of specific goals and objectives in the Redevelopment Plan,that the Authority shall have and enjoy with respect to the Project Area the full range of powers and duties conferred upon the Authority pursuant to the HRA Act,the TIF Act, municipal housing and redevelopment authority laws,and such other legal authority as the Authority may have or enjoy from time to time. Section C Statement of Need and Public Purpose The Authority finds that there is a need for redevelopment within the City and the Project Area in order to provide employment and housing opportunities,to improve the local tax base,and to improve the general economy of the City and the State. The economic security of the people in the City depends upon proper development of property that meets any one of a number of conditions, including properties whose values are too low to pay for the public services required or rendered and properties whose lack of use or improper use has resulted in stagnant or unproductive land that could otherwise contribute to the public health,safety,and welfare. The Authority finds that in many cases such property cannot be developed without public participation and assistance in various forms including property acquisition and/or write-down,proper planning,the financing of development costs associated with clearance, grading and soils correction, and the making of various other public and private improvements necessary for development. In cases where the development of property cannot be done by private enterprise alone,the Authority believes it to be in the public interest to consider the exercise of its powers,to advance and spend public money,and to provide the means and impetus for such development. The Authority finds that in certain cases property within the Project Area would or may not be available for development without the specific financial aid to be sought, that the Redevelopment Plan will afford maximum opportunity, consistent with the needs of the City as a whole, for the development of the Project Area by private enterprise,and that the Redevelopment Plan conforms to the general plan for the development of the City as a whole. The Authority further finds that the Project is a"redevelopment project'within the meaning of Minnesota Statutes, Section 469.002,subd.14 of the HRA Act. Section D Statement of Objectives The Authority seeks to achieve one or more of the following objectives with respect to the Project Area, as the Authority may deem appropriate and necessary. (1) To promote and secure the prompt development of property within the Project Area,such property which is not now in its most productive use,in a manner consistent with the Comprehensive Plan of the City,thus realizing Comprehensive Plan,land use,and tax base goals. (2) To assist development in the Project Area through the acquisition or write-down of certain interests in property which is not now in productive use or in its highest and best use,to make or defray the cost of soil corrections or site improvements on said property,and to construct or reimburse for the construction of public improvements and other facilities on or for the benefit of said property, thereby promoting and securing the development of other land within the Project Area. (3) To secure the increase of industrial and commercial property subject to taxation within the Project Area. SPRINGSTED Page 2 Housing and Redevelopment Authority in and for the City of Eden Prairie, Minnesota (4) To promote and secure additional employment opportunities within the City and to prevent the loss of existing employment opportunities,thereby preventing the loss of valuable human resources. (5) To provide funding for an ongoing development strategy and to prioritize the use of available resources. (6) To implement and revise from time to time, as may be deemed necessary or desirable, a consolidated and unified Redevelopment Plan and to finance the associated development costs on an area-wide basis. (7) To employ any of the powers of the Authority for the benefit of the Project Area in such cases and upon such terms as the Authority may deem appropriate. (8) To construct or acquire facilities deemed desirable for the development of the Project Area. Section E Boundaries of the Project Area The property within the City which constitutes the Project Area includes the property as illustrated on the map attached as Exhibit I. The City reserves the right to expand the boundaries of the Project Area in the future. Section F Property Acquisition The Authority may acquire property,or appropriate interest therein,within the Project Area as it deems necessary or desirable to assist in the implementation of the Redevelopment Plan. Section G Payment of Public Costs It is anticipated that the Public Costs of the Project Area will be paid primarily from tax increments or proceeds of tax increment bonds. Such costs are identified in the TIF Plan(s)for the corresponding TIF District(s) located within the Project Area. The Authority reserves the right to use other sources of revenue legally applicable to the Project Area to pay for such Public Costs including, but not limited to,special assessments,federal or state funds,and investment income. Section H Environmental Controls; Land Use Regulations All authority actions, public improvements and private development shall be carried out in a manner consistent with existing environmental controls and all applicable Land Use Regulations. Section I Park and Open Space to be Created Park and open space created within the Project Area will be done so in accordance with the zoning and platting ordinances of the City. SPRINGSTED Page 3 Housing and Redevelopment Authority in and for the City of Eden Prairie, Minnesota Section J Property Acquisition and Proposed Reuse The Redevelopment Plan contemplates that the Authority may acquire property and reconvey the same to another entity. Prior to formal consideration of the acquisition of any property,the Governing Body will require the execution of a binding development agreement with respect thereto and evidence that tax increments or other funds will be available to repay the Public Costs associated with the proposed acquisition. It is the intent of the Authority to negotiate the acquisition of property whenever possible. Appropriate restrictions regarding the reuse and redevelopment of property shall be incorporated into any development agreement to which the Authority is a party. Section K Administration and Maintenance Maintenance and operation of the Project Area will be the responsibility of the Community Development Director who shall serve as administrator of the Project Area. Each year the administrator will submit to the Governing Body the maintenance and operation budget for the following year. The administrator will administer the Redevelopment Plan pursuant to the provisions of the HRA Act; provided, however, that such powers may only be exercised at the direction of the Governing Body. No action taken by the administrator pursuant to the above-mentioned powers shall be effective without authorization by the Governing Body. Section L Relocation Any person or business that is displaced as a result of the Redevelopment Plan will be relocated in accordance with the provisions of the HRA Act and other applicable state law. Section M Amendments The Authority reserves the right to alter and amend the Redevelopment Plan subject to the provisions of state law regulating such action. SPRINGSTED Page 1 Exhibit Map of Redevelopment Project Area No.6 ject Area# INSEENNE IN \0 irie x Increment Redevelopment Project Area#6 UNITED PROPERTIES i June 29,2006 Ms.Mikaela Huot Springsted, Inc 380 Jackson Street, Suite 300 St. Paul, Mfg 55101-2887 RE: 6609 Flying Cloud Drive Eden Prairie,MN Dear Ms.Huot. United Properties has submitted a TIF application to the City of Eden Prairie requesting i TIF support in the amount of$1,044,244. United Properties recently demolished an obsolescent structure that had been formally determined to be blighted. The decision to demolish was made by United Properties because we had no interest by prospective tenants in the existing building because it had an inflexible space plan due to multiple phased expansions with a lot of structural bearing walls,various ceiling heights,a partial basement level and older architectural design,in addition to asbestos materials throughout the older structure_ United Properties decided to demolish the obsolescent structure and replace it with a new single-story office building that would be more attractive to current tenants in the marketplace. The decision to construct a one-story office building is also dictated by the marketplace_ The site does not have freeway visibility and is surrounded by similar one-story office and industrial properties. The marketplace will only pay a rent that supports one-story construction,which is less than for multi-story buildings. United Properties anticipates starting construction in September 2007 on a new one-story speculative office building containing 91,000 square feet. The costs to construct this project are too high due to unusual land costs, including demolition of the existing blighted building, asbestos abatement, and extensive site work including grading and removal of excess fill,retaining wall and stormwater pond construction. Obtaining TIF support to offset these unusual land costs will help make the project financially feasible and put it on an equal playing field with competitive properties. The project is not feasible without this assistance. The following is a cost breakdown for the amount of the TIF request. Demolition and Asbestos $728,204 Removal Earth Work(excess fill removal) $141,300 Retaining Wall $86, 040 Stormwater Ponds $47,500 TIF Support Fee $16,200 Related Engineering Fees $25,000 Total $1,044,244 3500 American Blvd.W. Minneapolis.MN 55431 • 952.831.1000 • fax 952.893.8206 www uproperties.com Ms. Mikaela Huot June 29, 2006 Page 2 Please call me if you have any questions. We respectfully request approval by the City of Eden Prairie for tax increment financing in the amount of$9,044,244. Very truly yours, Dale J. Giowa Senior Vice President Development DJGljIk CITY COUNCIL AGENDA DATE: August 1, 1006 SECTION: Public Hearings DEPARTMENT/DIVISION: ITEM DESCRIPTION: ITEM NO.: VIII.B. Community Superior Office Center Development/Planning Janet Jeremiah Michael Franzen Requested Action Move to: • Close the Public Hearing; and • Adopt the Resolution for Guide Plan Change from Industrial to Office on 10.36 acres;and • Adopt the Resolution for Planned Unit Development Concept Review on 10.36 acres; and • Approve 1 st Reading of the Ordinance for Planned Unit Development District Review and Zoning District Change from 1-2 to Office on 10.36 acres; and • Adopt the Resolution for Preliminary Plat on 10.36 acres into one lot;and • Direct Staff to prepare a Development Agreement incorporating Staff and Board recommendations and Council conditions. Synopsis The Comprehensive Guide Plan shows this 10.36 acre site for industrial use. The area surrounding the site is a mix of office and industrial uses. An office use of the site would be compatible with the uses in the area.This site is also part of the Golden Triangle Study. That study suggested a flex use or a 75%minimum office use. The site plan for the 93,000 square foot building conforms to the requirements for the office zoning district for setbacks,base area, floor area, and parking. Background Information The 120-Day Review Period Expires on October 20, 2006. Planning Commission Recommendation The Planning Commission Voted 5-2 to recommend approval of the project at the July 24,2006, meeting with a condition that the plans use more rainwater gardens-infiltration basins. The Commissioners voting against the project indicated the architecture should be more detailed and that industrial should be retained as a land use to help balance traffic. Attachments 1. Ordinance 2. Resolution-Amending Comp Plan 3. Resolution-PUD Concept 4. Resolution-Preliminary Plat 5. Staff Reports 6. Location Map 7. Land Use &Zoning Map SUPERIOR OFFICE CENTER CITY OF EDEN PRAIRIE HENNEPIN COUNTY,MINNESOTA ORDINANCE NO. -2006-PUD- -2006 AN ORDINANCE OF THE CITY OF EDEN PRAIRIE,MINNESOTA,REMOVING CERTAIN LAND FROM ONE ZONING DISTRICT AND PLACING IT IN ANOTHER, AMENDING THE LEGAL DESCRIPTIONS OF LAND IN EACH DISTRICT,AND, ADOPTING BY REFERENCE CITY CODE CHAPTER 1 AND SECTION 11.99 WHICH,AMONG OTHER THINGS,CONTAIN PENALTY PROVISIONS THE CITY COUNCIL OF THE CITY OF EDEN PRAIRIE,MINNESOTA,ORDAINS: Section 1. That the land which is the subject of this Ordinance(hereinafter,the "land") is legally described in Exhibit A attached hereto and made a part hereof. Section 2. That action was duly initiated proposing that the land be removed from the I-2 Zoning District and be placed in the Office Zoning District=2006-PUD-_-2006 (hereinafter"PUD-_-2006- "). Section 3. The land shall be subject to the terms and conditions of that certain Development Agreement dated as of ,2006, entered into between United Properties, and the City of Eden Prairie, (hereinafter"Development Agreement"). The Development Agreement contains the terms and conditions of PUD-_-2006- , and are hereby made a part hereof. Section 4. The City Council hereby makes the following findings: A. PUD-_-2006- is not in conflict with the goals of the Comprehensive Guide Plan of the City. B. PUD-_-2006- is designed in such a manner to form a desirable and unified environment within its own boundaries. C. The exceptions to the standard requirements of Chapters 11 and 12 of the City Code that are contained in PUD- -2006- are justified b the design of the _ J Y g development described therein. D. PUD-_-2006- is of sufficient size, composition, and arrangement that its construction, marketing,and operation are feasible as a complete unit without dependence upon any subsequent unit. Section 5. The proposal is hereby adopted and the land shall be, and hereby is removed from the I-2 Zoning District, and placed in the Office Zoning District and shall be included hereafter in the Planned Unit Development PUD-_-2006- and the legal descriptions of land in each district referred to in City Code Section 11.03, subdivision 1, subparagraph B, shall be and are amended accordingly. Section 6. City Code Chapter 1 entitled"General Provisions and Definitions Applicable to the Entire City Code Including Penalty for Violation"and Section 11.99 entitled "Violation a Misdemeanor"are hereby adopted in their entirety by reference, as though repeated verbatim herein. Section 7. This Ordinance shall become effective from and after its passage and publication. FIRST READ at a regular meeting of the City Council of the City of Eden Prairie on the 1" day of August, 2006, and finally read and adopted and ordered published in summary form as attached hereto at a regular meeting of the City Council of said City on the day of , 2006. ATTEST: Kathleen A. Porta, City Clerk Ron Case,Acting Mayor PUBLISHED in the Eden Prairie Sun Current on EXHIBIT A Existing Legal Description: Outlot A, Aqua Addition, Hennepin County, Minnesota To Be Platted: Lot 1 Block 1 Superior Office Center, Hennepin County, Minnesota SUPERIOR OFFICE CENTER CITY OF EDEN PRAIRIE HENNEPIN COUNTY,MINNESOTA RESOLUTION NO.2006- A RESOLUTION AMENDING THE COMPREHENSIVE MUNICIPAL PLAN WHEREAS,the City of Eden Prairie has prepared and adopted the Comprehensive Municipal Plan("Plan"); and WHEREAS,the Plan has been submitted to the Metropolitan Council for review and comment; and WHEREAS,the proposal of Superior Office Center, by United Properties is for a 93,000 square foot office building; NOW, THEREFORE,BE IT RESOLVED that the City Council of the City of Eden Prairie,Minnesota, hereby adopts the amendment of the Plan subject to Metropolitan Council approval as follows: ADOPTED by the City Council of the City of Eden Prairie this 1st day of August, 2006. Ron Case,Acting Mayor ATTEST: Kathleen A. Porta, City Clerk SUPERIOR OFFICE CENTER CITY OF EDEN PRAIRIE HENNEPIN COUNTY,MINNESOTA RESOLUTION NO.2006- A RESOLUTION APPROVING THE PLANNED UNIT DEVELOPMENT CONCEPT OF SUPERIOR OFFICE CENTER FOR UNITED PROPERTIES WHEREAS,the City of Eden Prairie has by virtue of City Code provided for the Planned Unit Development(PUD) Concept of certain areas located within the City; and WHEREAS, the Planning Commission did conduct a public hearing on July 24, 2006, on Superior Office Center by United Properties and considered their request for approval of the PUD Concept plan and recommended approval of the request to the City Council; and WHEREAS,the City Council did consider the request on August 1,2006. NOW,THEREFORE,BE IT RESOLVED by the City Council of Eden Prairie, Minnesota, as follows: 1. Superior Office Center, being in Hennepin County,Minnesota, legally described as outlined in Exhibit A, is attached hereto and made a part hereof. 2. That the City Council does grant PUD Concept approval as outlined in the plans stamp dated June 23, 2006. 3. That the PUD Concept meets the recommendations of the Planning Commission July 24, 2006. ADOPTED by the City Council of the City of Eden Prairie this 1st day of August, 2006. Ron Case,Acting Mayor ATTEST: Kathleen A. Porta, City Clerk EXHIBIT A PUD Concept- Legal Description: Existing Legal Description: Outlot A, Aqua Addition, Hennepin County, Minnesota To Be Platted: Lot 1 Block 1 Superior Office Center, Hennepin County, Minnesota SUPERIOR OFFICE CENTER CITY OF EDEN PRAIRIE HENNEPIN COUNTY,MINNESOTA RESOLUTION NO.2006- RESOLUTION APPROVING THE PRELIMINARY PLAT OF SUPERIOR OFFICE CENTER FOR UNITED PROPERTIES BE IT RESOLVED,by the Eden Prairie City Council as follows: That the preliminary plat of Superior Office Center for United Properties stamp dated June 23, 2006, and consisting of 10.36 acres into one lot, a copy of which is on file at the City Hall, is found to be in conformance with the provisions of the Eden Prairie Zoning and Platting ordinances, and amendments thereto, and is herein approved. ADOPTED by the Eden Prairie City Council on the I' day of August,2006. Ron Case,Acting Mayor ATTEST: Kathleen A. Porta, City Clerk STAFF REPORT TO: Planning Commission FROM: Michael D.Franzen, City Planner DATE: July 21, 2006 PROJECT: Superior Office Building LOCATION: Flying Cloud Drive and Shady Oak Road APPLICANT United Properties OWNERS: United Properties 120 DAY REVIEW: Expires October 21, 2006 REQUEST: 1. Comprehensive Guide Plan Change from Industrial to Office on 10.36 acres 2. Planned Unit Development Concept Amendment Review on 10.36 acres 3. Planned Unit Development District Review with waivers on 10.36 acres 4. Zoning District Change from I-5 to Office on 10.36 acres 5. Site Plan Review on 10.36 acres 6. Preliminary Plat of 10.36 acres into one lot Staff Report—Superior Office Building July 24,2006 Page 2 BACKGROUND In October 2005 the City approved a concept plan for a 91,000 square foot office building on this site. GUIDE PLAN CHANGE The Comprehensive Guide Plan shows this 10.36 acre site for industrial use. The area surrounding the site is a mix of office and industrial uses.An office use of the site would be compatible with the uses in the area. This site is also part of the Golden Triangle Study. That study suggested a flex use or a 75%minimum office use. SITE PLAN The site plan for the 93,000 square foot building conforms to the requirements for the office zoning district for setbacks, base area, floor area, and parking. DRAINAGE All storm water will be treated to NURP standards. UTILITES The buildings will be connected to City sewer and water. LANDSCAPING The amount of landscaping required is based on the square footage and tree replacement. Landscaping based on building square footage is 290 inches. There are 71 diameter inches of significant trees.A total of 71 inches will be lost due to construction. The required tree replacement is 94 inches. The landscape plan meets the landscaping and tree replacement requirements. ARCHITECTURE The building conforms to the exterior material requirements for office zoning district for 75% face brick, glass, or natural stone. STAFF RECOMMENDATIONS Recommend approval of the following request: Staff Report—Superior Office Building July 24,2006 Page 3 • Guide Plan Change from Industrial to Office on 10.36 acres • Planned Unit Development Concept Review on 10.36 acres. • Planned Unit Development District Review on 10.36 acres. • Zoning District Change from 1-2 to Office on 10.36 acres • Preliminary Plat of 10.36 acres into 1 lot • Site Plan Review on 10.36 acres. This is based on plans stamped dated July 21, 2006 and the following conditions: 1. Prior to City Council Review,the proponent shall: 2. Prior to release of the final plat,the proponent shall submit detailed storm water runoff, utility, and erosion control plans for review and approval by the City Engineer and Watershed District. 3. Prior to grading permit issuance,the proponent shall: A. Notify the City and Watershed District 48 hours in advance of grading. B. Install erosion control at the grading limits. 4. Prior to building permit issuance for the property,the proponent shall: A. Provide a landscaping/tree replacement surety equivalent to 150%of the cost of the landscaping/tree replacement plan for 384 inches. B. Review the plans with the Fire Marshal C. Provide a rooftop mechanical equipment screening plan for existing and proposed units. Area Location Map - Superior Office Center Address: 6509 Flying Cloud Drive Crosstown Circe in Highway 212 SITE f Hamilton Road Flying Cloud Drive Shady Oak Road No Scale. Guide Plan Map Superior {office Center 6509 Flying Cloud Drive, Eden Prairie, Minnesota i Sf q� Crosstown Circle T ls; f j r R i , I �l Flying Cloud(7rive ;' ,` F-lamllton Road ; 1 �f , f Shady Oak Road t r i 1 r.•j � „a�, ;, ��� � .�-x✓L � 8 C �h,� - � <z ,3t +ems, [ Low Density Residential 0-2,5 UnitsrActe' _ Noighborhood Commercial Principal Arterial Loci DensitytPublic'Open Space F—I Community Commercial ----A Minor Arterial t� f P Medium Density residential 2 5-10 Units/Acre Regional Commercial Minor Arterial Medium Density Residential/Office ParkJOpen Space -°-Major Collector rr High Density Residential 10-40 UnilslAcre Public/Quasi-P.blic — Minor Collector Office Church!Cremetary Office/Industdal Open Mier DATF pp,—.1 M-MM Oftice1Pu61icfOpen Space Right-Of-41say DATE Rc F—d 05-47va vM Industrial Netropolltan Urban Service Line(MUSA) Greeks Zoning Map Superior Office Center 65091 Flying Cloud Drive, Eden Prairie, Minnesota Crosstown Circle i 1 f Highway 212 /; a 3 x \ grs \�\ M, asp xd re r, \� <���� `i � Flying Cloud Crlve � � iiWMM 77 Hampton Road Or 1/ / ,.- \\\ , Z J 212 FEN \\ / Shady oak Road A \ \ Rural One Family-10acre min. H€ghv:ay Commercial Shoreland Management Classifications Rl-44 One Family-44,000 sf.min. Regional Service Commercai IKD Natural Environment Waters R1-22 One Family-22.000 sf ruin. Regional Commercial E0 Recreational Development Waters R1-13.5 One Family-i 3.500 sf min. Industrial Park-2 Acre Mn, [60 General Development Waters(Creeks Only) :RI 9.5 One Famil 500 sf min industrial Park 5 Acre Min © 100 Year Eloodplafn 5 RM-6.5 Multi-Family-6.7 U_RA mnx. c< General Industrial-6 Acre f itn-U gh ay 9319 Albst of County Road#4 is proposed,not constrmted at this time. Up dated through Ordinance RI:A-2.5 Nlulti-Fanlliy-17.4 U.P.A.max. Public f;o 005 n) (''r£I�h3r'i-'.,�,k 3 79!33.(dF!xddittfln auproue6,but dot ShrN1:n 3n finis mad adtiion Office 14tatai' Efate:June 24.2035. Neighborhood Commercial Right-of-t'.*ay z ,..,, i-- 7 community commercial Ctianhassen city limits CITY COUNCIL AGENDA DATE: August 1, 2006 SECTION: Public Hearings DEPARTMENT/DIVISION: ITEM DESCRIPTION: ITEM NO.: VIII.C. Community Woodland 2nd Addition Development/Planning Janet Jeremiah Regina Herron Requested Action Move to: • Close the Public Hearing; and • Adopt the Resolution for Preliminary Plat on .64 acres into 1 lot; and • Direct Staff to prepare a Development Agreement incorporating Staff and Board recommendations and Council conditions. Synopsis This is a preliminary plat of.64 acres into one lot in order to build a single family home. This project was continued from the July 18, 2006 City Council meeting. Background Information This lot is part of the Woodland Addition which was approved as a replat of Edenvale 3`d Addition and consists of 57 single family residential lots and two outlots(outlot's A and B.) 6983 Woodland Drive is outlot A. Outlot A was originally approved as private open space with ownership by the Edenvale Homeowners Association,which no longer exists. Since the association no longer exists, a Judge released the private open space covenants recorded on the property.In order to build the City must approve the subdivision and development plan for the lot. The lot conforms to the requirements of the R1-13.5 Zoning District. The 120 day review period expires on September 9, 2006 Planning Commission Recommendation The Planning Commission voted 7-1 to recommend approval of the project to the City Council at the June 12, 2006 meeting. Attachments 1. Resolution 2. Staff Report 3. Location Map 4. Land Use&Zoning Maps 5. Planning Commission Minutes WOODLAND 2'D ADDITION CITY OF EDEN PRAIRIE HENNEPIN COUNTY,MINNESOTA RESOLUTION NO.2006- RESOLUTION APPROVING THE PRELIMINARY PLAT OF WOODLAND 2ND ADDITION BY THOMAS ROBERTSON BE IT RESOLVED, by the Eden Prairie City Council as follows: That the preliminary plat of Woodland 2nd Addition for Thomas Robertson stamp dated July 18, 2006, and consisting of.64 acres into one lot, a copy of which is on file at the City Hall, is found to be in conformance with the provisions of the Eden Prairie Zoning and Platting ordinances, and amendments thereto, and is herein approved. ADOPTED by the Eden Prairie City Council on the 1,1 h day of August, 2006. Ron Case,Acting Mayor ATTEST: Kathleen A.Porta, City Clerk STAFF REPORT TO: Planning Commission FROM: Regina Herron,Planner I THROUGH: Michael D.Franzen, City Planner DATE: June 9, 2006 SUBJECT: Woodland 2nd Addition APPLICANT/ OWNER: Thomas Robertson LOCATION: 6983 Woodland Drive REQUEST: • Preliminary Plat of 27,979 square feet into one lot Staff Report—Woodland 2nd Addition June 9,2006 Page 2 BACKGROUND This lot is part of the Woodland Addition which was approved as a replat of Edenvale 3rd Addition and consists of 57 single family residential lots and two outlots(Outlot's A and B.) 6983 Woodland Drive is Outlot A. Outlot A was originally approved as private open space with ownership by the Edenvale Homeowners Association,which no longer exists. Prior to development of Outlot A,the site was required to be released from private open space covenants and restrictions. The property is zoned R1-13.5. The Comprehensive Guide Plan shows this site as Low Density Residential for up to 2.5 units per acre. PRELIMINARY PLAT The proposal is to plat the property into one single-family lot. Lot one is 27,979 square feet and, exceeding the minimum 13,500 square foot requirement. The abutting lots range from 13,500- 32,000 square feet. Lot dimension and frontage requirements also conform to the R1-13.5 zoning district. GRADING AND TREE LOSS There are a total of 326 diameter inches of significant trees on the property. Staffs analysis of tree loss is calculated at 7%, or 24 caliper inches. Tree replacement is 2 caliper inches. Staff recommends shifting the proposed house pad to the south 10 feet to avoid the drip line of the mature oak trees to the north. UTILITIES Public sanitary sewer and water is available in Woodland Drive. STAFF RECOMMENDATION Recommend approval of the following request: • Preliminary Plat of 27,979 square feet into one lot. This is based on plans stamp dated June 7, 2006,the Staff Report dated June 9, 2006 and the following conditions: 1. Prior to City Council review,the proponent shall submit a grading plan for review. 2. Prior to release of the final plat,the proponent shall: A. Submit detailed storm water runoff,utility, and erosion control plans for review and approval by the City Engineer and Watershed District. Staff Report—Woodland 2°d Addition June 9,2006 Page 3 B. Enter into a Special Assessment Agreement for sewer and water. 3. Prior to grading permit issuance,the proponent shall: A. Notify the City and Watershed District 48 hours in advance of grading. B. Install erosion control on the property, as well as tree protection fencing at the grading limits in the wooded areas for trees to be preserved as part of the development. Said fencing shall be field inspected by the City Forester prior to any grading. Area Location Map - Woodland 2nd Addition Address: 6983 Woodland Drive MCI vials As /S Woodhill III % Ironwood Ct Isis in; 1124 -04 OR wan mks s r!' SITE:: Summerhill Dr. --._._. Woodland Dr MAN uggs all. Springhill Cyr _. r Not o Sca Guide Plan Map Woodland 2nd Addition 6983 Woodland Drive Eden Prairie, Minnesota . t f i Woodhill Trail r i l V f Ironwood Court --- —;; SITE' Summerhill Drive Springhill Circle "AmorA; ' �f _ r i "!e l Low Density Residential 0-25 Units/Acre Neighborhood Commercial =Principal Arterial Law DensityiPublic/Open Space Community Commercial A Minor Arterial j Medium Density residential 2.5-10 Units/Acre Regional Commercial --8 MinorArterial Medium Density ResidentiiailOffice Park/Open'space Major Collector r � r High Density Residential 10-40 Units/Acre Public/Quasi-Public Minor Collector n Office Church/Cemetary Officeindustriial Open water DATE AWmwd 03.19-01 Zo Office/PublicfOpenSpace ^Right-Of-Why DATE r;eKscdor-or-os ME i� Industrial — Metropolitan Urban Service Line(MUSA) �.,Creeks Zoning Map Woodland 2nd Addition 6983 Woodland Drive, Eden Prairie, Minnesota V f Woodhill Trail % t Ironwood Court ---� y� SITE '" 1 r Summerhiil Drive ice Woodland Drive '� Q � t Springhill Circle t a �^s rig v In raine Rural One Family-10 acre min. Higtwray Commercial Shoreland Management Classifications RI-44 One Family-44,000 sr, In, Regional Service Commercial 3�E Natural Environment waters R1-22 One Fatuity-22,000 st min. Regional Commercial Eva Recreational Development Mters LGDJ General Development Waters(Creeks Only) Ri-13.5 One Family-13,50o sf min. Imfushiat Park-2 Acre Min, ® tt?©- Year Fioodpiain R1-$-5 One Farntty-9,500 of nun Industrial Park-5 Acre Min- Highway 0312 West of County Road Na is proposed.not constructed at this time: RM-6.5 MultiTamity-6.7 U.P.A.max. General industrial-5 Acre Min..up dated through Ordinance V09-2005 RW2.5 Multi-Family-17.4 U.P.A,max Public Ordinance 032001(BA Addition)approved,but not shown on this map edition office Water gale:dune 24,2WS ' ) ; Neighborhood Commercial Right-of-v.* a-�F.am ra+'ams6sz..'+casa xaa..n,:rNcu cman.�r sx. �„„,,community commercial Chanhasmi city limits N APPROVED MINUTES EDEN PRAIRIE PLANNING COMMISSION MONDAY,JUNE 12,2006 7:00 P.M.,CITY CENTER Council Chambers 8080 Mitchell Road BOARD MEMBERS: Jon Duckstad, John Kirk, Vicki Koenig, Jerry Pitzrick,Frank Powell, Peter Rocheford,Fred Seymour, Ray Stoelting,Jon Stoltz STAFF MEMBERS: Mike Franzen, City Planner Al Gray, City Engineer Carol Pelzel Recording Secretary I. PLEDGE OF ALLEGIANCE-ROLL CALL The meeting was called to order by Chair Stoelting at 7:00 p.m.Absent: Rocheford II. APPROVAL OF AGENDA MOTION by Koenig, seconded by Kirk,to approve the agenda as presented. Motion carried, 8-0. III. MINUTES A. PLANNING COMMISSION MEETING HELD ON MAY 22,2006. MOTION by Kirk, seconded by Koenig to approve the minutes as presented. Motion carried,6-0-2 with Seymour and Stoltz abstaining because of absence from that meeting. IV. PUBLIC MEETINGS V. INFORMATIONAL MEETING VI. PUBLIC HEARINGS A. VARIANCE#2006-05 by Lisa Rosenthal.Request to: Permit a shoreland setback of 75 feet for a room and deck addition from Purgatory Creek. City Code requires a 100 foot shoreland setback from Purgatory Creek which is classified as General Development Water.Location of the property is 6816 Charis Court. Rosenthal explained that her main goal for building this addition is to allow her to work from her home. She presented a petition that had been signed by all of her neighbors in support of this request. She was unable to obtain the signature of one neighbor who was out of town. EDEN PRAIRIE PLANNING COMMISSION June 12, 2006 Page 2 Nathan Shanklin, designer for the project,reviewed with the Commission the plans showing where the addition will be located. They propose to extend the lower bedroom out towards the creek. That room will be used as a studio in which Rosenthal will be able to work out of. Shanklin said they would be expanding the dining room in the upper level and off that they will be constructing a deck. There is the possibility in one area that they could build a smaller addition but there is a problem with the topography of the lot and the flow of the addition would not work with the upstairs. The access to the studio would also be affected. The smaller proposal would also be cost prohibitive because of the existing windows and design of the home. Shanklin stated that the proposed design would encroach on the creek a little further than what the house currently does. The previous owner had constructed a deck without a permit that extends 16 feet out from the house. Shanklin pointed out that the 75- foot setback is in conformance with the State's guidelines. In looking at the other structures in the neighborhood, many of them are built into the required setback. Shanklin further explained that this is a very small house and this addition will make more of the house usable and the addition will conform more to the existing homes in the neighborhood. Rosenthal pointed out that the upper and lower decks were never aesthetically situated. Nothing came together and the addition will be a great improvement to the neighborhood. The affected neighbors are in favor of the addition and feel the proposed changes will have a positive affect on the visual aspect of the home. Shanklin indicated that this is a very small house on a large lot.Approximately 9 percent of the lot size is used for hard cover. The applicant is building what she needs and no more. This house is considerably smaller than other houses in the neighborhood and in the City. Franzen presented the staff report indicating that to do something in this manner within the setback, considerable structural changes to the house and internal changes as to room locations would have to be made.The Commission needs to take into consideration the relationship between the size of the building to the size of the lot.Most new homes built in the City occupy 25 percent of the lot as compared with 9%with this variance. Franzen explained that the Commission cannot look at structural changes and cost associated as the only reason for considering this variance. This could be one of the reasons. The more compelling reason would be the amount of small coverage and the percentage of the building that encroaches on the 100-foot setback that may make it different from other lots. Stoelting explained that the staff report talked about a shoreland setback of 75 feet for the room and deck addition and the letter from the developer talks about a setback of 84.6 feet. He questioned the two different setback numbers. Shanklin explained that the original survey was printed on an 8 '/2 x I 1 sheet of paper and was not to scale. When they scaled it they came up with a 75 foot setback which is the correct number. Powell pointed out that the neighbors who signed the petition of approval all lived on Charis Court. He asked if any other residents on Duck Lake Trail,Tartan Curve of Sugarhill Circle were contacted. Rosenthal explained that when she received the letter from the City indicating that it would be sent to the people who lived within 500 feet of her residence, she assumed it was only necessary to contact those people who would be directly affected by the EDEN PRAIRIE PLANNING COMMISSION June 12, 2006 Page 3 addition.Rosenthal offered to contact the other residents for their approval to construct this addition. Kirk said that when he visited this site it was difficult to get an assessment of the impact of this addition on the Creek.He asked if City staff did review this site to determine that there will be no impact to the Creek. Franzen replied that the proponent is not proposing to remove any trees adjacent to the house. Also,they are not altering any part of the property that is within 50 feet of the required setback zone. Koenig asked if staff has any idea as to how far back other homes are set in this area. Franzen responded that any homes built prior to 1982 are 75 feet back because that represented the State model at that time. In 1982,the City incorporated the State standards into its ordinance and decided to require that all bodies of water have the same setback. Koenig also asked if there are any other variances in the area.Franzen said that Staff is not aware of any. In response to a question from Koenig,Franzen explained that no grading or alteration of the existing vegetation is allowed within the shore impact zone. Stoelting explained that there is a provision in the ordinance that a variance may be granted if this is an undue hardship.He asked the proponent to address the issue of undue hardship. Rosenthal stated that she is required to travel extensively to care for family members. This does not allow her to take on a full-time job because of her family responsibilities and the requirements for travel and flexibility. Rosenthal said creating this studio would allow her to work from her home. Pitzrick pointed out that the addition being proposed is not that large relative to the size of the lot. A similar addition on the side of the house would have a significant negative impact on the neighboring homes. The neighbors have indicated that they feel this is a positive addition. Stoelting said it appears that the undue hardship is the size of the lot.This addition appears to be the most likely size due to the unique features of the lot. The utility easements may also be another factor as to why this addition is placed in the direction that it is. Motion by Kirk, seconded by Koenig,to close the public hearing. The motion carried,8-0. Motion by Kirk, seconded by Powell,to recommend approval of the shoreland setback variance of 75-feet for a room and deck addition based on plans stamp dated May 5, 2006 and the staff report dated June 9, 2006. The motion carried,8-0. B. WOODLAND 2ND ADDITION by Tom Robertson.Request for: Preliminary Plat of 27,979 square feet into one lot. Location of the property is 6983 Woodland Drive. Robertson explained that a neighborhood meeting was held regarding this proposal. Eighty different homeowners were notified and four people came to the meeting representing the EDEN PRAIRIE PLANNING COMMISSION June 12, 2006 Page 4 owners adjacent to this lot. The neighbors do not object to this proposal. Robertson said they do concur with the staffs report and are proposing to shift the proposed house pad to the south ten feet to avoid the drip line of the mature oak trees to the north. Staff presented the staff report indicating that staff is recommending approval with conditions as outlined on Pages 2 and 3 of the staff report. Pitzrick asked the proponent if he has contacted the people that are proposing to purchase the property to the north.Robertson explained that he is the individual selling the property and the purchaser is buying that property and this lot.At the present time,they have no plans to do anything with the lot but want to know they have a buildable lot. Powell asked for the history on the transfer of ownership for this outlot. Franzen explained that much of the common area land in Edenvale went into tax forfeiture when the Association was dissolved. In some case land was sold directly to individuals. The.City had first option to purchase property.After that time, anyone could purchase it from the County by going through the public process.Powell said it seems strange that the Association would sell property that was dedicated as open space and that the City would allow or support this. Franzen said that is at the City's discretion of converting open space to a lot since it was part of an approved plan.He added that the lot conforms to city code and zoning in the area. Robertson explained that the Association was served by the Courts and there was no response on the service.They also went to the Secretary of State's office and the Association had not filed anything with them to remain active for the last eight to ten years. Powell said he realizes they have no control over what happened 15 or 20 years ago but that he is not supportive of allowing outlots that were public to go private.Powell said the proponent has rightful use of the property but he cannot support the conversion of open space to housing. Stoelting indicated that the proponent has gone through the legal process and he said he does not know that they can dispute the process he has followed. The proponent has also held a meeting with the neighbors and they do not object to the proposal. Stoelting said he personally has no problem with the request. Koenig said she does not question what the proponent has done but does have questions about the procedure and what will happen when other areas in Associations that dissolve become available. She asked if they would have to go through a similar process.Franzen explained that they will find other situations coming forward in the future. They need to look at each request and determine what makes it different from other sites and to decide whether or not the City should approve the request or not allow it.They would need to look at the lot size and setbacks to determine whether or not it should be allowed on an individual basis. Kirk said that there are circumstances surrounding each individual outlot that they could face that would guide the Commission in different directions. Each case will stand on its own.He indicated that he would support the proposal being made today. EDEN PRAIRIE PLANNING COMMISSION June 12, 2006 Page 5 Motion: by Duckstad, seconded by Koenig,to close the public hearing. The motion carried,8-0. Motion: by Duckstad, seconded by Stoltz,to recommend approval of the Preliminary Plat of 27,979 square feet into one lot based on plans stamp dated June 7, 2006, and the staff report dated June 9, 2006. The motion carried,7-1 with Powell voting nay. C. SOUTHWEST METRO TRANSIT BUS GARAGE ADDITION by Southwest Metro Transit Commission.Request for: • Planned Unit Development Concept Review on 10.1 acres. • Planned Unit Development District Review with waivers on 10.1 acres. • Zoning District Amendment within the I-2 to Zoning District on 10.1 acres. • Site Plan Review on 10.1 acres. Location of the property is 14405 62nd Street West. Dave Simoneau, Director of Operations&Maintenance for South West Metro Transit, explained that transit is growing 20 to 25 percent per year. They currently have 56 buses and have maxed out their bus storage and maintenance facility. Simoneau indicated that they are trying to maximize the use of this site and this proposal will carry them through 2009. Eric Jansen of LSA Design, explained that this plan focuses on getting enough buses on the site that addresses the needs of the southwest metro.Jansen presented an overview of the site stating that this would be a stand-alone bus storage facility on the south part of the site. The site expansion would accommodate straight in and straight out for 22 buses. They are also proposing to add an employee parking lot on the west part of the site and to add a fueling canopy to the existing fuel island. Jansen further explained that another major piece of this project is the capturing of additional storm water in the pond on the east end of the site. This will be a pre-manufactured building with concrete block and the colors will be similar to the existing building. Franzen presented the staff report indicating that staff is recommending approval according to the recommendations on Pages 3 and 4 of the staff report. Koenig asked how much this project would encroach on the shoreland area.Franzen explained that they would be approximately 50 feet from the creek and there is a 25-foot wetland buffer. Stoelting said staff has indicated that some waivers need to be approved.He asked Franzen to address those waivers.Franzen reviewed the waivers with the Commission and presented the various reasons for the waivers. EDEN PRAIRIE PLANNING COMMISSION June 12, 2006 Page 6 Stoltz stated that the proponent has indicated that this project will carry them through 2009. He asked what they would do when they outgrow this facility. Simoneau responded that part of the issue right now is to accommodate the real-time growth. Eventually,they will have to look at communities where their service takes them and they may need to look at something west of Eden Prairie. Simoneau explained that they are in the process of looking for land further west. They will continue to use this facility but will have to expand in other areas. Motion by Stoltz, seconded by Koenig,to close the public hearing. The motion carried,8- 0. Motion by Stoltz, seconded by Powell,to recommend approval of the Planned Unit Development Concept Review on 10.1 acres, Planned Unit Development District Review with waivers on 10.1 acres, Zoning District Amendment within the I-2 Zoning District on 10.1 acres, and the Site Plan Review on 10.1 acres based on plans stamp dated May 24, 2006, and the staff report dated June 9, 2006. The motion carried,8-0. VII. MEMBERS' REPORTS Kirk presented an update to the Commission on the Way Finding Committee. Stoelting said the Commission had received an invitation to the Going Green workshop.The workshop will be held on Tuesday, June 27, from 8:30 a.m.to 3:00 p.m. at the Minnesota Arboretum. VIII. CONTINUING BUSINESS Franzen said they are attempting to reschedule the Other Cities Bus Tour.He asked that the Commission members indicate which dates they are available. Franzen stated that the next meeting of the Commission is June 19 and they have two items for that meeting. There will be a joint Planning Commission and City Council workshop on July 18 beginning at 5:00 p.m.relative to the Guide Plan update.Also, on June 19 the consultant will give a presentation to the Commission relative to the Guide Plan updates. Franzen indicated that homeowners have difficulty coming up with hardships or unique circumstances for requesting a variance. He said he is proposing to modify the variance application to give the homeowners insight as to what they should include in their description for requesting the variance. They should look at things such as the impact on tree loss,the impact on wetland, small size variance, unusual size of lot, improving visual impact of home, utility easements impacting the location of the addition, etc. Franzen said he would try to have a revised application put together as soon as possible. IX. NEW BUSINESS X. PLANNERS' REPORT EDEN PRAIRIE PLANNING COMMISSION June 12, 2006 Page 7 XI. ADJOURNMENT Motion by Pitzrick, seconded by Kirk,to adjourn the meeting. The motion carried,8-0.The meeting was adjourned at 8:20 p.m. CITY COUNCIL AGENDA DATE: SECTION: Payment of Claims August 1, 2006 DEPARTMENT/DIVISION: ITEM DESCRIPTION: ITEM NO.: IX. Sue Kotchevar, Office of the Payment of Claims City Manager/Finance Requested Action Move to: Approve the Payment of Claims as submitted(roll call vote) Synopsis Checks 154821 - 155270 Wire Transfers 2500 -2509 City of Eden Prairie Council Check Summary 8/1/2006 Division Amount Division Amount 511 Construction Fund 6,865 General 58,853 512 CIP Trails 3,090 100 City Manager 365 516 ADC PROJECT 7,864 101 Legislative 465 519 Community Center Referendum 23,001 110 City Clerk 758 520 Parks Referendum 6,876 111 Customer Service 6,996 521 Trails Referendum 12,284 113 Communication Services 12,070 601 Prairie Village Liquor 134,936 114 Benefits&Training 4,169 602 Den Road Liquor 183,718 115 Risk Management 4,484 603 Prairie View Liquor 128,113 116 Facilities 38,700 605 Den Road Building 1,403 117 City Center 31,655 701 Water Fund 183,350 130 Assessing 25 702 Sewer Fund 1,055 131 Finance 160 703 Storm Drainage Fund 11,296 132 Social Services 15,898 800 TIF 154,436 133 Planning 485 803 Escrow Fund 4,695 135 Information Technology 20,983 807 Benefits Fund 493,962 136 Wireless Communication 1,314 809 Investment Fund 5,326 137 Economic Development 26 150 Park Administration 373 Report Totals 2,585,280 151 Park Maintenance 34,121 153 Organized Athletics 5,239 154 Community Center 4,123 156 Youth Programs 9,762 157 Special Events 13,970 158 Adult Recreation 2,310 160 Therapeutic Recreation 69 161 Oak Point Pool 9,057 162 Arts 3,201 163 Outdoor Center 3,569 164 Park Rental Facilities 256 180 Police 4,220 184 Fire 1,630 200 Engineering 450 201 Street Maintenance 628,761 202 Street Lighting 1,419 203 Fleet Services 53,525 204 Equipment Revolving -74 301 CDBG 2,814 303 Cemetary Operation 1,565 304 Senior Board 808 308 E-911 1,481 310 Fire Fighters Fund 2,606 312 Recycle Rebate 4,169 316 WAFTA 7,122 427 2005 G.O.IMPR BONDS 350 430 G.O.Improvement Bonds 2006A 4,000 431 G.O.Improvement Bonds 2006B 8,500 502 Park Development 20,176 503 Utility Improvement 26,894 506 Improvment Bonds 1996 19,135 509 CIP Fund 150,001 City of Eden Prairie Council Check Register 8/1/2006 Check# Amount Vendor/Explanation Account Description Business Unit 2500 12,052 ICMA RETIREMENT TRUST-457 Deferred Compensation General Fund 2501 19,105 ORCHARD TRUST CO AS TRUSTEE/CU Deferred Compensation General Fund 2502 88,430 PUBLIC EMPLOYEES RETIREMENT AS PERA Health and Benefits 2504 33,551 MINNESOTA DEPT OF REVENUE State Taxes Withheld Health and Benefits 2505 175,144 WELLS FARGO MINNESOTA N A SS&Medicare Health and Benefits 2506 526 MINNESOTA DEPT OF REVENUE Motor Fuels Fleet Services 2507 18,124 MINNESOTA DEPT OF REVENUE Cash Over/Short General Fund 2508 1,928 MINNESOTA DEPT OF REVENUE State Taxes Withheld Health and Benefits 2509 3,475 WELLS FARGO MINNESOTA N A Federal Taxes Withheld Health and Benefits 154821 27 BARTNIK,AARON B Other Contracted Services Teen Work Program 154822 14 BARTNIK,ADAM B Other Contracted Services Teen Work Program 154823 71 BRIDENSTEINE,CHELSEA Other Contracted Services Teen Work Program 154824 33 CARLSTEDT,ANNIE Other Contracted Services Teen Work Program 154825 105 CARROLL,MEGAN M Other Contracted Services Teen Work Program 154826 49 CRAMPTON,KELLY A Other Contracted Services Teen Work Program 154827 98 CRUTCHER,CHELSEA Y Other Contracted Services Teen Work Program 154828 49 FETTER,PAIGE A Other Contracted Services Teen Work Program 154829 49 FINNEY,THOMAS P Other Contracted Services Teen Work Program 154830 7 FISCHER,BRENNA K Other Contracted Services Teen Work Program 154831 118 GLEDHILL,JENNIFER Other Contracted Services Teen Work Program 154832 49 HANSON,AUDREY N Other Contracted Services Teen Work Program 154833 14 JASKULKE,TAYLOR A Other Contracted Services Teen Work Program 154834 40 JOHNSON,MARINA N Other Contracted Services Teen Work Program 154835 70 KIERSTEAD,CHRISTY Other Contracted Services Teen Work Program 154836 92 KISSINGER,SAMANTHA Other Contracted Services Teen Work Program 154837 28 MORIYAMA,LAUREN M Other Contracted Services Teen Work Program 154838 41 NEILSON,KEVIN Other Contracted Services Teen Work Program 154839 53 NORTON,LEIGHA N Other Contracted Services Teen Work Program 154840 46 O'CONNELL,LUXMI Other Contracted Services Teen Work Program 154841 72 REED,CARL E Other Contracted Services Teen Work Program 154842 138 SHAH,RAOUL Other Contracted Services Teen Work Program 154843 48 SHAWD,ANDREW Other Contracted Services Teen Work Program 154844 64 SKOBOV,MIKHAIL Other Contracted Services Teen Work Program 154845 39 WARD,ANDREA L Other Contracted Services Teen Work Program 154846 23 YEAROUS,NICHOLAS S Other Contracted Services Teen Work Program 154847 10 AIR MASTERS INC Cash Over/Short General Fund 154848 28 AMERICAN MESSAGING Pager&Cell Phone Water System Maintenance 154849 49 ANDERSON,KATHRYN Program Fee Tennis 154850 3,200 ASPEN WASTE SYSTEMS INC. Waste Disposal Senior Center 154851 361 B&H PHOTO Other Hardware Information Technology 154852 500 CARVER COUNTY SHERIFF'S DEPT. Deposits Escrow 154853 102 CEDAR LAKE FARMS Special Event Fees Trips 154854 20 CHAN,JANICE Program Fee Summer Skill Development 154855 81 COPPIN PLUMBING Cash Over/Short General Fund 154856 681 COSTCO Miscellaneous City Council 154857 12 DILLON,LOIS Lessons&Classes Oak Point Lessons 154858 35 DOSSA,DAN Lessons&Classes Pool Lessons 154859 1,189 DUALE,KHADRA Tuition Reimbursement/School Organizational Services 154860 106 HENNEPIN COUNTY PUBLIC RECORDS Other Contracted Services Engineering 154861 5,932 HENNEPIN SOUTH SERVICES COLLAB Other Contracted Services Housing,Trans,&Human Sery 154862 2,905 INTERACTIVE EVENTS,INC Other Contracted Services July 4th Celebration 154863 28 JOHNSON,TERRI Program Fee Playgrounds 154864 1,080 MEDICINE LAKE TOURS Special Event Fees Trips 154865 975 MINN CHILD SUPPORT PAYMENT CTR Garnishment Withheld General Fund 154866 155 MINNESOTA COUNTY ATTORNEYS ASS Tuition Reimbursement/School Police 154867 80 MINNESOTA DEPT OF AGRICULTURE Lime Residual Removal Water Treatment Plant 154868 23 MINNESOTA DEPT OF HEALTH Licenses&Taxes Water Utility-General 154869 17,728 MINNESOTA STATE RETIREMENT SYS Other Deductions General Fund 154870 4,000 MOODY'S INVESTORS SERVICE Bond Issue Costs G.O.Improvement Bonds 2006A 154871 40 MTGF Conference Expense Park Maintenance 154872 2,040 MTOA Tuition Reimbursement/School Police Check# Amount Vendor/Explanation Account Description Business Unit 154874 18 RICHFIELD,CITY OF Autos Police 154875 100 RODRIGUEZ,MELISSA Lessons&Classes Fitness Classes 154876 2,567 SPRINT Wireless Subscription Information Technology 154877 18 STATE OF MINNESOTA Operating Supplies Fleet Services 154878 69 SUNRISE FIRE PROTECTION Fire Prevention Permits General Fund 154879 3,000 TEENS ALONE Other Contracted Services Housing,Trans,&Human Sery 154880 135 TIME WARNER CABLE Dues&Subscriptions City Council 154881 20 TWIN CITIES THEATRE AND FILM Advertising Arts Initiative 154882 391 VUKELICH,JOHN AR Utility Water Enterprise Fund 154883 8 WALTER MECHANICAL Cash Over/Short General Fund 154884 5 WANG,LEI Org Athletic League Fees Raquetball 154885 112 WASTE MANAGEMENT-BURNSVILLE LA Improvements to Land Parks Referendum 154886 143 A MEYER'S ENTERPRISES INC Instructor Service Outdoor Center 154887 80 AARP 55 ALIVE MATURE DRIVING Other Contracted Services Classes/Programs/Events 154888 235 BLUNT,PATTY Program Fee Camps 154889 1,150 BOLD,PAULINE Instructor Service Outdoor Center 154890 382 FLYING CLOUD T/S#U70 Waste Disposal Park Maintenance 154891 160 GOVERNMENT FINANCE OFFICERS AS Dues&Subscriptions Finance 154892 135 GRIFFIN,SANDY Program Fee Camps 154893 200 HINDING,CHRIS Other Contracted Services Staring Lake Concert 154894 24 KRAEMERS HARDWARE INC Repair&Maint.Supplies Water System Maintenance 154895 85 KRUEGER,MARK Operating Supplies Reserves 154896 1,216 MINN OFFICE OF ENTERPRISE TECH Other Contracted Services Police 154897 29 MINNESOTA DEPT OF HEALTH Licenses&Taxes Water Treatment Plant 154898 1,971 MINNESOTA VALLEY ELECTRIC COOP Electric Stormwater Liftstation 154899 951 PETTY CASH Petty Cash&Change Funds General Fund 154900 300 PHILIPSEK,REYNOLD Other Contracted Services Purgatory Creek Recreation Are 154901 296 PRAIRIE ELECTRIC COMPANY Capital Under$2,000 Rehab 154902 1,153 QWEST Telephone Wireless Communication 154903 500 SHAPIRA,JOEL F Other Contracted Services Staring Lake Concert 154904 14 SNYDER,JEREMY AR Utility Water Enterprise Fund 154905 280 SOLEE,LAVERNE Instructor Service Classes/Programs/Events 154906 34 STAR TRIBUNE Dues&Subscriptions Prairie View Liquor Store 154907 1,591 US POSTMASTER-HOPKINS Postage Water Accounting 154908 16,898 XCEL ENERGY Electric City Hall-CAM 154909 117 AMERIPRIDE LINEN&APPAREL SER Repair&Maint.Supplies Prairie View Liquor Store 154910 347 ARCTIC GLACIER INC Misc Non-Taxable Prairie Village Liquor Store 154911 6,132 BELLBOY CORPORATION Liquor Prairie Village Liquor Store 154912 629 CAT&FIDDLE BEVERAGE Wine Domestic Prairie Village Liquor Store 154913 6,438 DAY DISTRIBUTING Beer Prairie View Liquor Store 154914 1,480 EAGLE WINE COMPANY Wine Domestic Den Road Liquor Store 154915 160 EXTREME BEVERAGE Misc Taxable Prairie View Liquor Store 154916 42 FRED Misc Taxable Den Road Liquor Store 154917 448 GRAND PERE WINES INC Wine Imported Prairie Village Liquor Store 154918 1,410 GRAPE BEGINNINGS Wine Domestic Prairie Village Liquor Store 154919 10,235 GRIGGS COOPER&CO Liquor Prairie Village Liquor Store 154920 843 HOHENSTEINS INC Beer Prairie Village Liquor Store 154922 27,013 JOHNSON BROTHERS LIQUOR CO Liquor Prairie View Liquor Store 154923 86 M.AMUNDSON LLP Misc Taxable Den Road Liquor Store 154925 66 MARGRON SKOGLUND WINE IMPORTS, Wine Domestic Den Road Liquor Store 154926 20,035 MARK VII Beer Den Road Liquor Store 154927 215 MIDWEST COCA COLA BOTTLING COM Misc Taxable Den Road Liquor Store 154928 2,679 PAUSTIS&SONS COMPANY Wine Imported Prairie Village Liquor Store 154929 12,663 PHILLIPS WINE AND SPIRITS INC Transportation Den Road Liquor Store 154930 2,429 PRIOR WINE COMPANY Wine Domestic Prairie Village Liquor Store 154932 17,658 QUALITY WINE&SPIRITS CO Wine Imported Prairie View Liquor Store 154933 205 SALUD AMERICA INC Wine Imported Den Road Liquor Store 154934 308 SHAMROCK GROUP,INC-ACE ICE Misc Non-Taxable Den Road Liquor Store 154935 16,013 TAYLOR DIST CO OF MN INC Beer Prairie Village Liquor Store 154936 20,291 THORPE DISTRIBUTING Beer Prairie Village Liquor Store 154937 757 WINE COMPANY,THE Wine Domestic Prairie Village Liquor Store 154938 1,583 WINE MERCHANTS INC Wine Imported Prairie View Liquor Store 154939 242 WINE SOURCE INTERNATIONAL Liquor Den Road Liquor Store 154940 399 WORLD CLASS WINES INC Wine Domestic Prairie Village Liquor Store 154941 65 CARLSON,JOEL Program Fee Camps Check# Amount Vendor/Explanation Account Description Business Unit 154942 1,680 CENTERPOINT ENERGY Gas Water Treatment Plant 154943 50 GASCH ROBERT Other Contracted Services Riley-Jacques Barn 154944 904 GE CAPITAL Other Rentals General 154945 20 GILBERT,GORDON Program Fee Cummins House Special Events 154946 262 GRAND SLAM SPORTS&ENTERTAINM Special Event Fees Teen Work Program 154947 435 HENNEPIN COUNTY TREASURER Operating Supplies Planning 154948 15 HOCHREIN,PAMELA Events/Admission Fee Teen Programs 154949 306 HOEDEMAN,LEAH Program Fee Arts&Drama Programs 154950 100 IND SCHOOL DIST 272 Refunds Environmental Education 154951 376 KOERING,STEVE Travel Expense Fire 154952 20 MENARDS Repair&Maint.Supplies Park Maintenance 154953 277 MINNESOTA PRINT MANAGEMENT LLC Office Supplies General 154954 85 MOORHEAD,MAUREEN Program Fee Summer Skill Development 154955 85 MORGAN,JOAN Program Fee Summer Skill Development 154956 412 MOSS,KELSEY Other Revenue General Fund 154957 1,224 MUHLHAUSER,WENDY Instructor Service Arts&Drama Programs 154958 32 NEUGEBAUER,ERIN Other Revenue General Fund 154959 2,385 NILSSEN,BETH Instructor Service Ice Arena 154960 59 PETTY CASH-EPCC Mileage&Parking Community Center Admin 154961 28 PORATH,AMY Program Fee Playgrounds 154962 93 PORTA,KITTY Mileage&Parking City Clerk 154963 47,031 PRAIRIE VILLAGE LMTD PARTNERSH TIF Payment TIF Elim Shores&PV Apartment 154964 3,774 RELIASTAR LIFE INSURANCE CO Disability Ins Employers Health and Benefits 154965 135 RICHARDSON,JIM Recreation Supplies Summer Skill Development 154966 49 SCHLUNDT,CONNIE Program Fee Tennis 154967 6,289 STANDARD INSURANCE CO Life Insurance EE/ER Health and Benefits 154968 85 STILLER,SUE Program Fee Summer Skill Development 154969 107,405 TE MILLER DEVELOPMENT LLC TIF Payment Lincoln Parc Apartments 154970 63 W GORDON SMITH COMPANY,THE Motor Fuels Fleet Services 154971 17,337 XCEL ENERGY Electric Community Center Maintenance 154972 200 ASSOCIATED WELL DRILLERS INC Supplies-Fire/Life/Safety Den Bldg.-CAM 154973 2,282 BEACON ATHLETICS Operating Supplies Park Maintenance 154976 7,683 BIFFS INC Waste Disposal Park Maintenance 154977 149 CARLSON,DAN Mileage&Parking Police 154978 6,014 DEPT OF LABOR&INDUSTRY Building Surcharge General Fund 154979 627 DIRECT SAFETY CO Safety Supplies Water Treatment Plant 154980 780 EDEN PRAIRIE FIREFIGHTER'S REL Union Dues Withheld General Fund 154981 142 G&K SERVICES-MPLS INDUSTRIAL Other Rentals Park Maintenance 154982 224 GLENROSE FLORAL AND GIFT SHOPS Accounts Payable Escrow 154983 1,879 HOMELINE Refunds CDBG-Public Service 154984 575 IAPE Tuition Reimbursement/School Police 154985 1,337 INNOVATIVE LANDSCAPE SUPPLY IN Grounds Maintenance Water Treatment Plant 154986 500 MILLE LACS COUNTY SHERIFF'S DE Deposits Escrow 154987 322 MINN CHILD SUPPORT PAYMENT CTR Garnishment Withheld General Fund 154988 562 OFFICE DEPOT CREDIT PLAN Capital Under$2000-Gen Bldg Furniture 154989 1,107 PARROTT CONTRACTING INC Testing-Soil Boring Improvement Projects 1996 154990 7,194 PICHA GREENHOUSE Landscape Materials/Supp Park Maintenance 154991 3,000 POSTAGE BY PHONE RESERVE ACCOU Postage General 154992 47 PRIORITY COURIER EXPERTS Equipment Repair&Maint Fleet Services 154993 19 QUICKSILVER EXPRESS COURIER Operating Supplies Trail Construction 154994 1,481 QWEST Telephone E-911 Program 154995 6,966 SENIOR COMMUNITY SERVICES Other Contracted Services Housing,Trans,&Human Serv' 154996 2,592 SPRINT Wireless Subscription Information Technology 154997 433 THOMPSON,RANDY Tuition Reimbursement/School Organizational Services 154998 5,000 WELL-PROP(MULTI)LLC Miscellaneous Construction Fund 154999 726 WILLIAMS,ELAINE Operating Supplies Senior Board 155000 17,723 XCEL ENERGY Electric City Hall-CAM 155001 280 AARP 55 ALIVE MATURE DRIVING Other Contracted Services Classes/Programs/Events 155002 174 ALTERNATIVE BUSINESS FURNITURE Capital Under$2,000 Furniture 155003 195 BALDINGER,WENDY Other Contracted Services Staring Lake Concert 155004 94 CUB FOODS EDEN PRAIRIE Operating Supplies Fire 155005 117 D'AMICO AND SONS Conference Expense Parks Administration 155006 519 DE LAGE LANDEN FINANCIAL SERVI Other Rentals General 155007 359 DMX MUSIC Other Contracted Services Den Road Liquor Store 155008 569 ECS CONSTRUCTION Building Permits General Fund Check# Amount Vendor/Explanation Account Description Business Unit 155009 91 GE CAPITAL Other Rentals General 155010 389 GENERAL GROWTH PROPERTIES LP-E Building Rental CDBG Fund 155011 2,722 GRAYBAR Supplies-Fire/Life/Safety City Hall-CAM 155012 250 HALL,MARY F Other Contracted Services Purgatory Creek Recreation Are 155013 176,660 HEALTHPARTNERS Medical Bills Prepaid Health and Benefits 155014 483 HENNEPIN COUNTY I/T DEPT Software Maintenance Information Technology 155015 28 LEMCO HYDRAULICS INC Equipment Parts Fleet Services 155016 595 METRO SALES INCORPORATED' Other Rentals Risk Management 155017 125 MIAMA Conference Expense Ice Arena Maintenance 155018 48 NORTHERN AIR CORP Cash Over/Short General Fund 155019 13 PARK EQUIPMENT COMPANY Equipment Repair&Maint Park Maintenance 155020 957 PARK NICOLLET CLINIC Other Contracted Services Risk Management 155021 8,528 PRAIRIE PARTNERS SIX LLP Building Rental Prairie Village Liquor Store 155022 7,570 PRAIRIEVIEW RETAIL LLC Building Rental Prairie View Liquor Store 155023 18 STATE OF MINNESOTA Operating Supplies Fleet Services 155024 550 TWIN CITIES HOT CLUB,THE Other Contracted Services Staring Lake Concert 155025 8 VERIZON WIRELESS Pager&Cell Phone Park Maintenance 155026 350 WRIGHT,JOHN Other Contracted Services Staring Lake Concert 155027 921 XCEL ENERGY Electric Senior Center 155028 341 JAKE'S CITY GRILL Special Event Fees Red Hat 155029 94 AMERIPRIDE LINEN&APPAREL SER Repair&Maint.Supplies Den Road Liquor Store 155030 330 ARCTIC GLACIER INC Misc Non-Taxable Prairie Village Liquor Store 155031 9,732 BELLBOY CORPORATION Liquor Den Road Liquor Store 155032 19,075 DAY DISTRIBUTING Beer Prairie Village Liquor Store 155033 64 DTM DISTRIBUTING INC Misc Taxable Den Road Liquor Store 155034 4,240 EAGLE WINE COMPANY Wine Imported Den Road Liquor Store 155035 128 EXTREME BEVERAGE Misc Taxable Den Road Liquor Store 155036 1,005 GRAPE BEGINNINGS Wine Domestic Prairie Village Liquor Store 155037 25,687 GRIGGS COOPER&CO Transportation Prairie View Liquor Store 155039 42,580 JOHNSON BROTHERS LIQUOR CO Misc Taxable Den Road Liquor Store 155040 580 M.AMUNDSON LLP Misc Taxable Den Road Liquor Store 155041 36 MALONEY,RACHEL Misc Taxable Den Road Liquor Store 155042 34,682 MARK VII Beer Prairie Village Liquor Store 155043 1,463 MIDWEST COCA COLA BOTTLING COM Misc Taxable Den Road Liquor Store 155044 583 NEW FRANCE WINE COMPANY Wine Domestic Den Road Liquor Store 155045 3,460 PAUSTIS&SONS COMPANY Wine Imported Prairie Village Liquor Store 155046 23,623 PHILLIPS WINE AND SPIRITS INC Wine Domestic Den Road Liquor Store 155047 5,268 PRIOR WINE COMPANY Wine Domestic Den Road Liquor Store 155049 25,407 QUALITY WINE&SPIRITS CO Wine Imported Den Road Liquor Store 155050 808 SHAMROCK GROUP,INC-ACE ICE Transportation Den Road Liquor Store 155051 462 SPECIALTY WINES AND BEVERAGES Wine Imported Prairie Village Liquor Store 155052 22,416 TAYLOR DIST CO OF MN INC Beer Prairie View Liquor Store 155053 39,559 THORPE DISTRIBUTING Beer Den Road Liquor Store 155054 562 WINE COMPANY,THE Wine Domestic Prairie Village Liquor Store 155055 3,978 WINE MERCHANTS INC Wine Domestic Prairie Village Liquor Store 155056 233 WORLD CLASS WINES INC Wine Imported Den Road Liquor Store 155058 675 A MEYER'S ENTERPRISES INC Instructor Service Outdoor Center 155059 1,447 AOI ELECTRICAL INC Capital Under$2,000 Fleet Services 155060 72 BINO,SUSAN Equipment Repair&Maint Senior Center Operations 155061 500 BOLD,PAULINE Instructor Service Outdoor Center 155062 190 BRAGG,ANNALISA Instructor Service Outdoor Center 155063 82 BRUENING,CHARLOTTE Operating Supplies Senior Board 155064 1,000 BURTIS,ROBERT Other Contracted Services Special Initiatives 155065 575 CAMPOS,LORI Instructor Service Outdoor Center 155066 92 CATCO PARTS SERVICE Equipment Repair&Maint Fleet Services 155067 176 CINEMA GRILL Special Event Fees Teen Work Program 155068 74 CULLIGAN BOTTLED WATER Operating Supplies Fire 155069 24 DO,HANH Lessons&Classes Oak Point Lessons 155070 2 DUVICK,LOIS Program Fee Trips 155071 202 FERRELLGAS Lubricants&Additives Fleet Services 155072 171 HANLON,KIM Operating Supplies Fire 155073 50 HENNEPIN COUNTY TREASURER Operating Supplies Planning 155074 43 KRAEMERS HARDWARE INC Repair&Maint.Supplies Fire 155075 1,364 LUPIENT COLLISION CENTER Insurance Risk Management 155076 4,710 MEDICA Medical Bills Prepaid Health and Benefits Check# Amount Vendor/Explanation Account Description Business Unit 155077 90 MINNESOTA DEPT OF LABOR AND IN Licenses&Taxes Fire 155078 9 MINNESOTA VALLEY ELECTRIC COOP Electric Riley Creek Woods 155079 100 OTTERNESS,RON Instructor Service Outdoor Center 155080 19 PAULSEN,CAROLE Program Fee Red Hat 155081 86 PETTY CASH-EPCC Office Supplies Community Center Admin 155082 18 RISLEY,BONNIE Lessons&Classes Pool Lessons 155083 6,571 ROOF DEPOT Building Repair&Maint. Capital Impr./Maint.Fund 155084 33 RYDLAND,VALERIE Lessons&Classes Ice Arena 155085 39 SCOONOVER,BELLE Lessons&Classes Ice Arena 155086 128 SENSKE,JIM AR Utility Water Enterprise Fund 155087 35 SLETTEN,LOLA Program Fee Red Hat 155088 9 TIME WARNER CABLE Operating Supplies Fire 155089 15 UPS Postage Fire 155090 56,048 XCEL ENERGY Electric Traffic Signals 155091 225 A TO Z RENTAL CENTER Other Rentals Park Maintenance 155092 591 A-SCAPE INC Contract Svcs-Lawn Maint. Fire Station#3 155093 89 AAA LAMBERTS LANDSCAPE PRODUCT Landscape Materials/Supp Street Maintenance 155094 449 ABLE HOSE&RUBBER INC Equipment Parts Water Treatment Plant 155095 65 ACE TRAILER SALES Equipment Repair&Maint Park Maintenance 155096 240 ACTIVE NETWORK INC,THE Other Hardware Information Technology 155097 690 AIR LIQUIDE INDUSTRIAL U.S.LP Treatment Chemicals Water Treatment Plant 155098 319 ALPHA VIDEO& AUDIO INC Video&Photo Supplies Communication Services 155099 1,275 ANCHOR PAPER COMPANY Office Supplies General 155100 1,859 APRES Other Rentals July 4th Celebration 155101 50 AQUA ENGINEERING INC Repair&Maint.Supplies Park Maintenance 155102 113 AQUA LOGIC INC Chemicals Pool Maintenance 155103 599 ASPEN EQUIPMENT CO. Equipment Repair&Maint Fleet Services 155104 464 ATHLETICA Advertising Park Acquisition&Development 155105 395 AUDIOVISUAL INC Video&Photo Supplies Communication Services 155106 348 BARNES,BELINDA A. Other Contracted Services Volleyball 155107 1,490 BAUER BUILT TIRE AND BATTERY Tires Fleet Services 155108 857 BECKER ARENA PRODUCTS INC Repair&Maint-Ice Rink Ice Arena Maintenance 155109 250 BEST&FLANAGAN LLP Other Contracted Services Rehab 155110 176 BOYER TRUCKS Equipment Parts Fleet Services 155111 12,449 BRAUER AND ASSOCIATES LTD Design&Engineering Park Acquisition&Development 155112 2,606 CABELA'S MKTG&BRAND MGT INC Capital Under$2,000 Fire Fighters Fund 155113 87 CATCO PARTS SERVICE Equipment Parts Fleet Services 155114 259 CDW GOVERNMENT INC. Other Hardware Information Technology 155115 2,869 CEMSTONE PRODUCTS COMPANY Repair&Maint.Supplies Storm Drainage 155116 3,742 CENTURY FENCE Contracted Striping Traffic Signs 155117 212 CHOICE INC Other Contracted Services Prairie Village Liquor Store 155118 42 CHRISTY,JAMES J Other Contracted Services Softball 155119 490 CIT Conference Expense Information Technology 155120 2,080 CLAREYS INC Safety Supplies Water Treatment Plant 155121 1,544 COMPAR INC Other Hardware Capital Impr./Maint.Fund 155122 58 CONNEY SAFETY PRODUCTS Office Supplies General 155123 872 CORPORATE EXPRESS Office Supplies General 155124 781 CUSTOM REFRIGERATION INC Equipment Repair&Maint Prairie View Liquor Store 155125 24,519 CUTLER-MAGNER COMPANY Treatment Chemicals Water Treatment Plant 155126 515 CWH RESEARCH INC. Employment Support Test Organizational Services 155127 702 DALE GREEN COMPANY,THE Improvement Contracts CIP Trails 155128 1,707 DECORATIVE DESIGNS INC Contract Svcs-Int.Landscape City Hall-CAM 155129 23,001 DELANO ERICKSON ARCHITECTS Design&Engineering Community Center Referendum 155130 85 DELEGARD TOOL CO Small Tools Fleet Services 155131 11,065 DELL Computers Information Technology 155132 1,000 DIETHELM,GARY Other Contracted Services Pleasant Hill Cemetary 155133 2,709 DONS SOD SERVICE Improvement Contracts Construction Fund 155134 8,500 DORSEY&WHITNEY LLP Bond Issue Costs G.O.Improvement Bonds 2006B 155135 704 DOYLE,AARON N Other Contracted Services Softball 155136 28,594 DRT TRANSPORT Lime Residual Removal Water Treatment Plant 155137 299 EAGLE DRY GOODS Clothing&Uniforms Park Facilities 155138 596 EARL F ANDERSEN INC Repair&Maint.Supplies Lake Eden Park 155139 100 EDEN PRAIRIE CHAMBER OF COMMER Miscellaneous City Council 155140 217 EDEN PRAIRIE NOON ROTARY CLUB Dues&Subscriptions City Council 155141 621 EDEN PRAIRIE ROTARY CLUB Dues&Subscriptions Parks Administration Check# Amount Vendor/Explanation Account Description Business Unit 155142 324 EHLERS&ASSOCIATES INC Deposits Escrow 155143 304 ELVIN SAFETY SUPPLY INC Repair&Maint-Ice Rink Ice Arena Maintenance 155144 771 ENGINEERED ICE SYSTEMS Contract Svcs-Ice Rink Ice Arena Maintenance 155145 175 ERICKSEN,LIZ Other Contracted Services Volleyball 155146 308 FALCK,TIMOTHY R Other Contracted Services Softball 155147 543 FISK,APRIL Other Contracted Services Volleyball 155148 138 G&K SERVICES Clothing&Uniforms Street Maintenance 155149 1,589 G&K SERVICES-MPLS INDUSTRIAL Other Rentals Park Maintenance 155150 67,650 GARTNER REFRIGERATION&MFG IN Contract Svcs-Ice Rink Ice Arena Maintenance 155151 7,122 GEOMATRIXCONSULTANTS INC Other Contracted Services WAFTA 155152 493 GERTENS Landscape Materials/Supp Park Maintenance 155153 1,290 GRAINGER Supplies-HVAC Park Shelters 155154 4,169 GREEN LIGHTS RECYCLING INC Other Contracted Services Recycle Rebate 155155 344 GS DIRECT Operating Supplies Engineering 155156 774 HACH COMPANY Laboratory Chemicals Water Treatment Plant 155157 231 HAGEN,SIDNEY E Other Contracted Services Softball 155158 18,864 HANSEN THORP PELLINEN OLSON Other Contracted Services Storm Drainage 155159 40,732 HARTLAND FUEL PRODUCTS LLC Motor Fuels Fleet Services 155160 4,284 HAWKINS INC Treatment Chemicals Water Treatment Plant 155161 173 HEIGL TECHNOLOGIES INC Operating Supplies Community Center Admin 155162 578 HENRY,PAUL Other Contracted Services Softball 155163 1,078 HIRSHFIELDS PAINT MANUFACTURIN Operating Supplies Park Maintenance 155164 176 HOLMES,JOHN CARTER Other Contracted Services Softball 155165 176 HOLMES,TOM Other Contracted Services Softball 155166 2,264 HYDROLOGIC Repair&Maint.Supplies Park Maintenance 155167 49 IMAGETECH SERVICES Operating Supplies Park Maintenance 155168 8,896 IND SCHOOL DIST 272 Other Contracted Services Oak Point Operations 155169 5,432 INNOVATIVE GRAPHICS Clothing&Uniforms Fire 155170 8 INSIGHT PUBLIC SECTOR Other Hardware Information Technology 155171 300 INTERSTATE POWER SYSTEMS INC Equipment Repair&Maint Fleet Services 155172 164 ITS A KEEPER Employee Award Organizational Services 155173 261 JANEX INC Cleaning Supplies Community Center Maintenance 155174 6,604 JOHNSON CONTROLS Building Repair&Maint. Water Treatment Plant 155175 2,302 K&H OUTDOORS,INC Other Contracted Services Pleasant Hill Cemetary 155176 3,408 KAMIDA INC Improvements to Land Parks Referendum 155177 931 KRISS PREMIUM PRODUCTS INC Building Capital Impr./Maint.Fund 155178 1,069 LANO EQUIPMENT INC Other Rentals Park Maintenance 155179 2,859 LAVAN FLOOR COVERING Building Capital Impr./Maint.Fund 155180 3,147 LHB INC Deposits Escrow 155181 5,474 LIFE SAFETY SYSTEMS Contract Svcs-Fire/Life/Sfty City Hall-CAM 155182 207 MACQUEEN EQUIPMENT INC Equipment Parts Fleet Services 155183 413 MASTER SPRINKLER SYSTEMS Other Contracted Services Park Maintenance 155184 506 MCGREGOR,RANDY Other Contracted Services Softball 155186 1,076 MENARDS Operating Supplies Water Treatment Plant 155187 4,211 METRO CONCRETE RAISING INC Repair&Maint.Supplies Storm Drainage 155188 850 METRO SALES INCORPORATED* Other Rentals Risk Management 155189 1,052 METROPOLITAN FORD Lubricants&Additives Fleet Services 155190 8,175 MIDWEST ASPHALT CORPORATION Improvement Contracts ADC PROJECT 155191 5,551 MIDWEST DESIGN CO Other Contracted Services Communication Services 155192 196 MILLER DUNWIDDIE Other Contracted Services Capital Impr./Maint.Fund 155193 1,868 MINNESOTA UC FUND Unemployment Compensation Employee Benefits 155194 49 MN MAINTENANCE EQUIPMENT INC Equipment Repair&Maint Park Maintenance 155195 725 MTI DISTRIBUTING INC Equipment Parts Fleet Services 155196 242 MURRAY,JOHN Other Contracted Services Softball 155197 16,877 NEWMECH Improvement Contracts Water Treatment Plant 155198 39 NEXT DAY GOURMET Repair&Maint.Supplies Den Road Liquor Store 155199 431 NORTHERN SAFETY TECHNOLOGY INC Equipment Parts Fleet Services 155200 5,326 NORTHSHORE ADVISORS LLC Interest Investment Fund 155201 7,666 NORTHSTAR MUDJACKING SPECIALIS Other Contracted Services Capital Impr./Maint.Fund 155202 38,271 NORTHWEST ASPHALT Improvements to Land Capital Impr./Maint.Fund 155203 1,118 NORTHWEST BUSINESS SYSTEMS Other Contracted Services Telephone 155204 41 NORTHWEST RESPIRATORY SERVICE Safety Supplies Fire 155205 162 NUCO2 INC Chemicals Pool Maintenance 155206 64 ORIENTAL TRADING COMPANY INC Operating Supplies Pool Special Events 155207 114 OSI BATTERIES INC Equipment Parts Fleet Services Check# Amount Vendor/Explanation Account Description Business Unit 155208 457 PAM OIL INC Equipment Parts Fleet Services 155209 484 PARTEK SUPPLY INC Asphalt Overlay Street Maintenance 155210 501 PEET BROS COMPANY INC Capital Under$2,000 Storm Drainage 155211 170 PICHA GREENHOUSE Landscape Materials/Supp Park Maintenance 155212 69 PIONEER RIM&WHEEL CO Equipment Parts Fleet Services 155213 344 PTTNEY BOWES INC Other Rentals Risk Management 155214 21 POWERPLAN OIB Equipment Parts Fleet Services 155215 1,079 PRAIRIE ELECTRIC COMPANY Repair&Maint.Supplies Water Treatment Plant 155216 55 PRAIRIE LAWN AND GARDEN Operating Supplies Street Maintenance 155217 1,948 PRAIRIE RESTORATIONS INC Other Contracted Services Storm Drainage 155218 153,800 PRECISION SEALCOATING INC Crack Filling Street Maintenance 155219 34 PRINTERS SERVICE INC Contract Svcs-Ice Rink Ice Arena Maintenance 155220 261 QUALITY PROPANE Motor Fuels Ice Arena Maintenance 155221 160 R&R SPECIALTIES OF WISCONSIN Repair&Maint-Ice Rink Ice Arena Maintenance 155222 1,000 RAY,LEE Other Contracted Services Softball 155223 374 RIDGEVIEW MEDICAL CENTER Other Contracted Services Risk Management 155224 44 RIGID HITCH INCORPORATED Equipment Parts Fleet Services 155225 311 SCHARBER&SONS Equipment Parts Fleet Services 155226 210 SCHMIDT,KURT Other Contracted Services Softball 155227 150 SCRAP METAL PROCESSORS INC Equipment Repair&Maint Fleet Services 155228 2,780 SHANNON CHEMICAL CORPORATION Treatment Chemicals Water Treatment Plant 155229 45,158 SHORT ELLIOTT HENDRICKSON INC Design&Engineering Improvement Projects 1996 155230 83 SHRED-IT Waste Disposal City Center Operations 155231 484 SNAP-ON TOOLS Small Tools Fleet Services 155232 7,449 SOUTHWEST SUBURBAN PUBLISHING- Printing Communication Services 155233 1,193 SPS COMPANIES Supplies-Plumbing Park Shelters 155234 3,335 SRF CONSULTING GROUP INC Design&Engineering Park Acquisition&Development 155235 1,610 ST CROIX RECREATION CO INC Operating Supplies Park Maintenance 155236 426 ST JOSEPH EQUIPMENT INC Other Rentals Street Maintenance 155237 335 STAR TRIBUNE Dues&Subscriptions Communication Services 155238 124 STAR TRIBUNE Legal Notices Publishing City Clerk 155239 483 STEMPF AUTOMOTIVE INDUSTRIES I Equipment Parts Fleet Services 155240 164 STEVENS ENGINEERS Building Capital Impr./Maint.Fund 155241 68 STEWART D WALKER INC Supplies-General Bldg Historical Buildings 155242 190 STODDARD SILENCERS Operating Supplies Water Treatment Plant 155243 170 STREICHERS Equipment Parts Fleet Services 155244 338 SUBURBAN CHEVROLET Equipment Parts Fleet Services 155245 9,813 SUMMIT ENVIROSOLUTIONS Process Control Services Water Treatment Plant 155246 397 SUN NEWSPAPERS Legal Notices Publishing City Clerk 155247 1,896 SUNSOURCE Equipment Repair&Maint Fleet Services 155248 133 SYNERGY GRAPHICS INC Printing Elections 155249 103 TEE JAY NORTH INC Contract Svcs-General Bldg Community Center Maintenance 155250 79 TIMBERWALL LANDSCAPING INC Landscape Materials/Supp Street Maintenance 155251 50 TOWN AND COUNTRY DODGE Equipment Parts Fleet Services 155252 109 TWIN CITY OXYGEN CO Lubricants&Additives Fleet Services 155253 1,166 UNITED RENTALS Capital Under$2,000 Street Maintenance 155254 2,336 UNITED RENTALS HIGHWAY TECHNOL Other Rentals July 4th Celebration 155255 288 UNLIMITED SUPPLIES INC Equipment Parts Fleet Services 155256 4,850 USAQUATICS Design&Engineering Park Acquisition&Development 155257 3,122 VERNCO MAINTENANCE INC Grounds Maintenance Water Treatment Plant 155258 25 VICTORY CORPS Operating Supplies July 4th Celebration 155259 13,624 VIRCHOW KRAUSE&COMPANY Software Maintenance Capital Impr./Maint.Fund 155260 168 VOSS LIGHTING Supplies-Electrical Park Shelters 155261 226 WATSON CO INC,THE Merchandise for Resale Concessions 155262 350 WELLS FARGO BANK MINNESOTA NA Paying Agent 2005 G.O.Imp.Revolving Fund 155263 13,375 WESTSIDE EQUIPMENT Other Contracted Services Capital Impr./Maint.Fund 155264 1,706 WIGLEY AND ASSOCIATES Software Information Technology 155265 463,242 WM MUELLER AND SONS INC Asphalt Overlay Street Maintenance 155266 5,150 WORK CONNECTION,THE Other Contracted Services Park Maintenance 155267 37 WORM,SANDY Improvement Contracts CIP Trails 155268 12,178 YALE MECHANICAL INC Contract Svcs-HVAC Park Shelters 155269 236 ZEE MEDICAL SERVICE Operating Supplies Outdoor Center 155270 5,882 ZIEGLER INC Other Rentals July 4th Celebration 2,585,280 Grand Total CITY COUNCIL AGENDA DATE: SECTION: Ordinances&Resolutions August 1, 2006 DEPARTMENT/DIVISION: ITEM DESCRIPTION: ITEM NO.: X.A. Police Department Dangerous Dog Ordinance Chief Dan Carlson Requested Action Move to: Approve the first reading of the ordinance amending section 9.07 of the City Code. Synopsis Due to a recent court decision,the City Attorney has recommended that the City update its ordinances relating to dangerous and potentially dangerous dogs. Background A case decided by the Court of Appeals held that if a City did not have an ordinance in place, it could not use provisions of state law enabling its use to deal with dangerous dogs. The existing city ordinance did not contain any reference to dangerous dogs.The City Attorney has drafted language which allows us to utilize the applicable state laws. Attachment Ordinance CITY OF EDEN PRAIRIE HENNEPIN COUNTY,MINNESTOA ORDINANCE NO. AN ORDINANCE OF THE CITY OF EDEN PRAIRIE,MINNESOTA,AMENDING CITY CODE BY ADDING TO SECTION 9.07,SUBDIVISION 20 RELATING TO ADOPTION OF STATUTES BY REFERENCE;SUBDIVISION 21 RELATING TO DANGEROUS AND POTENTIALLY DANGEROUS DOGS PROCEDURES;SUBDIVISION 22 RELATING TO PROCEDURES FOR DESTRUCTION OF DOGS; AND ADOPTING BY REFERENCE CITY CODE CHAPTER 1 AND SECTION 9.99 WHICH AMONG OTHER THINGS CONTAIN PENALTY PROVISIONS. THE CITY COUNCIL OF THE CITY OF EDEN PRAIRIE,MINNESOTA ORDAINS: Section 1. Section 9.07 is amended by adding Subdivisions 20, 21 and 22 as follows: Subd. 20. Adoption of Statues by Reference. Minnesota Statutes §§ 347.50-.347.56 inclusive (2005)are hereby adopted by reference.One copy marked as the official copy shall be filed for use and examination by the public in the office of the City Clerk. Subd.21.Procedures for Determination of Dangerous and Potentially Dangerous Dogs A. When the Chief of Police has determined that a dog is a dangerous dog or a potentially dangerous dog,the Chief of Police shall notify the owner in writing of that determination. The notice shall include the basis or bases on which the determination has been made and a description of the evidence supporting such basis or bases.The notice shall further advise the owner that he may appeal the determination,by filing with the City Clerk his written request for a hearing,within fourteen(14) days after the date contained in the notice.If the owner does not request a hearing within the fourteen(14)days,the Chief of Police's determination shall be final. B. If the owner requests a hearing,the date for the hearing shall be set not more than fourteen (14) days after receipt of the request for hearing. The hearing shall be held by the Hearing Officer, who may be appointed by the City Manager and who may be an employee of the City.Upon conclusion of the hearing,the Hearing Officer shall,within ten(10)days,make his decision which reverses or affirms the determination that the dog is a dangerous dog or a potentially dangerous dog and shall notify the owner in writing of his decision ("Hearing Officer's Notice of Decision"). If the Hearing Officer's decision is to affirm the determination,he shall include in the Hearing Officer's Notice of Decision his findings and conclusions supporting his decision. C. The Hearing Officer's Notice of Decision shall also advise the owner that he may appeal the decision of the Hearing Officer to the Council by filing a notice in writing of the owner's appeal with the City Clerk within fourteen 14 days after the date contained in the Hearin pP h' ( ) Y g Officer's Notice of Decision.If the owner does not file his notice of appeal within fourteen (14)days,the Hearing Officer's decision shall be final. D. The Council's consideration of the matter shall be based upon the evidence and record of the proceedings before the Hearing Officer.The Council shall consider the matter within thirty (30)days after filing of the notice of appeal and may affirm or reverse the Hearing Officer's decision. In either event,the Council's decision shall be final. Subd.22. Procedures for Destruction of Dogs.To afford a dog owner an opportunity for a hearing for the destruction of a dog pursuant to Minnesota Statutes§347.56(2005),the procedures specified in Section 9.07, Subdivision 21 shall be followed, except that the Hearing Officer shall be an Administrative Law Judge from the Office of Administrative Hearings or other impartial decision- maker and the Hearing Officer's decision shall be final, except however,the Council may reverse the Hearing Officer's decision to destroy a dog. Section 2. City Code Chapter 1 entitled"General Provisions and Definitions Applicable to the Entire City Code including Penalty for Violation" and Section 9.99 are hereby adopted in their entirely by reference as though repeated verbatim herein. Section 3. This Ordinance shall become effective from and after its passage and publication. FIRST READ at a regular meeting of the City Council of the City of Eden Prairie on the 1 S` day of August 2006 and finally read and adopted and ordered published at a regular meeting of the City Council of said City on the day of 2006. Kathleen Porta, City Clerk Nancy Tyra-Lukens, Mayor PUBLISHED in the Eden Prairie Sun Current on , 2006.