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2013-02-28 -Council Agenda Packet
Agenda Corcoran City Council February 28, 2013 - 7:00 PM 1. Call to Order/ Roll Call 2. Pledge of Allegiance 3. Agenda Approval 4. Open Forum 5. Presentations - Commissioner Jeff Johnson, Hennepin County 6. Consent Agenda a. Draft Minutes of 2/14/13 Council Meeting* b. Authorizing Asphalt Maintenance Bidding 7. Claims as Presented * a. Escrow Claims (Fund #500) b. Financial Claims 8. Staff Reports / Memos / Commissions a. Draft Planning Commission Minutes of 2/07/2013* b. Planning Project Update* c. Code Enforcement Update* d. Financial Performance Report e. Memo on Projects in the area* 9. Planning /Zoning a. City File 12 -017 Ordinance 2013 - 275- AmendUpdate Conditional Use Permit Amendment* 10. Unfinished Business a. Public Works Facility Project Update b. TI F Projects* c. March 7, 2013 Joint Meeting* d. Board of Review Training e. Ryan Wetland Donation* 11. New Business a. Gambling Ordinance* b. Code Enforcement — 12 -021 20XXX Co Rd 10* c. City Administrator Transition Planning 12. Review of Upcoming Council Meeting Agenda 13. Adjournment *Includes Materials - Materials relating to these agenda items can be found in the House Agenda Packet by Door. Administrator's City Council Meeting Agenda Memo February 28, 2013 1. Call to Order / Roll Call 2. Pledge of Allegiance 3. Agenda Approval 4. Open Forum 5. Presentations 6. Consent Agenda a. Draft Minutes of February 14, 2013 Council Meeting b. Authorizing Asphalt Bids. The 2013 Budget has a line item for $130,000 for asphalt to be used for street patching and for repairing short runs of deteriorating streets. In the absence of a decision on a gravel road paving project (Trail Haven) we should proceed with getting bids. Since this is going to be over the $100,000 threshold, closed bidding is required and the council needs to authorize the letting of the bids. 7. Claims as Presented * a. Escrow Claims (Fund #500). b. All Other Claims As Presented. The claims now include any claims from the Building Official. Routine claim and nothing I noted as unusual or needing further explanation. 8. Staff Reports / Memos /Commissions a. Draft Planning Commission Minutes of 2/7/2013 b. Planning Projects Update. See report. c. Code enforcement Update. See report. d. Financial Performance Report. The press of activities and being short of staff will delay this report. We will deliver to you by Tuesday prior to the council meeting. e. Projects in Neighboring Cities. See report. 9. Planning /Zoning a. Ordinance 2013 -276 and Resolution 2013 -05, Conditional Use Permit Amendment. See Planner's Report. 10. Unfinished Business a. PW Facility Update. There will be a verbal update. All of the notices and bidding requirements have been met. The specs are out on the street and we are underway. b. TIF Projects. See report in your packet. Also in your packet is background information including the actual TIF Plan (latest modification from 2007). One other point to consider. The staff memo outlining projects that could qualify using surplus TIF total $975,000. Missing from that list is the use of surplus TIF to pay back the General Fund for the previous Infrastructure Planning stated in 2002. c. March 7, 2013 Joint Meeting of City Council and City Commissions. The Planner and I have put together a draft agenda for the Joint Council /Commissions meeting. We would like the council to finalize the agenda and give any other direction in order to prepare for the meeting. d. Board of Review Training. At the last council meeting, the council was informed that there would be a Board of Review Training opportunity on March 7th, 5 -8:00 pm, at the City of Plymouth. The council members were to consider if they were interested in attending and report back at this meeting. Reservations need to be made ASAP. 1 Administrator's City Council Meeting Agenda Memo February 28, 2013 11. New Business a. Gambling Ordinance. The council asked that this item be put on the agenda for discussion. I have provided background material from the League, a model ordinance from the League, and ordinances from Brooklyn Center, Spring Lake Park, and Maple Grove. b. Code Enforcement Complaint. The information in your packet concerns the complaint of storage of vehicles in a zoning district that does not allow this use. The property owner was going to approach the council last month but could not attend. He will be coming to this meeting. c. City Administrator Transition Planning. The mayor indicated that he would be making a verbal recommendation to the council on proceeding with both the transition plan to appoint a new city administrator and, and on discussions with me on an exit plan. 12. Review of Upcoming Council Meeting Agenda Council Calendar Planning Commission 2/7/13 3/7/13 4/4/13 5/2/13 6/6/13 7/4/13 Asleson Lynch Cossette Thomas Guenthner Asleson Parks and Trails Commission 1/15/13 2119/13 3/19/13 4/16/13 5/21/13 6/18113 Asleson Lynch Cossette Thomas Guenthner Asleson 2 City of Corcoran City Council Meeting Minutes February 14, 2013 - 7:00 PM 6a. The Corcoran City Council met on February 14, 2013, at City Hall in Corcoran, Minnesota. Present were, Mayor Guenthner, Councilor Asleson, Councilor Cossette, Councilor Lynch, and Councilor Thomas. Also present were City Administrator Donahue, City Attorney Carson, City Planner Lindahl, City Engineer Torve, Public Works Superintendent Meister, Director of Public Safety Gormley, and Code Compliance Official Pritchard. Mayor Guenthner called the regular meeting to order at 7:00 pm. 1. Call to Order / Roll Call 2. Pledge of Allegiance 3. Agenda Approval MOTION: made by Cossette, seconded by Thomas to approve the agenda as presented with the following additions: 7b. Additional Financial Claim 8c. Board of Review Training 11c. Staffing discussion Voting Aye: Guenthner, Asleson, Cossette, Lynch and Thomas. (Motion carried 5:0) 4. Open Forum -None 5. Presentations, Bill Craig, League of MN Cities Ambassador spoke to council about advantages of league membership. 6. Consent Agenda a. Draft Minutes of 1/24/13 Council Meeting MOTION: made by Thomas, seconded by Cossette to approve the Draft Minutes of 1/24/13 Council Meeting as presented. Voting Aye: Guenthner, Cossette, Lynch and Thomas. (Motion carried 4:0) Asleson abstained b. Ordinance 2013 -274 Summary of Ordinance 2013 -273 Adopting 2013 Fee Schedule MOTION: made by Cossette, seconded by Lynch to approve Ordinance 2013 -274 Summary of Ordinance 2013 -273 Adopting 2013 Fee Schedule as presented. Voting Aye: Guenthner, Asleson, Cossette, Lynch and Thomas. (Motion carried 5:0) 7. Claims as Presented a. Escrow Claims (Fund #500) MOTION: made by Asleson, seconded by Thomas to approve escrow claims as presented. Voting Aye: Guenthner, Asleson, Cossette, Lynch and Thomas. (Motion carried 5:0) b. Financial Claims MOTION: made by Asleson, seconded by Lynch to approve financial claims as presented with the following addition. $160.00 Public Works training Voting Aye: Guenthner, Asleson, Cossette, Lynch and Thomas. (Motion carried 5:0) 8. Staff Reports / Memos / Commissions a. Draft P & T Commission Minutes of 1/15/2013 received, no action required b. Facility Audio Video Upgrade City of Corcoran City Council Meeting Minutes February 14, 2013 - 7:00 PM 6a. MOTION: made by Cossette, seconded by Thomas to approve the expenditure of $7,084.86 on audio visual upgrades. Voting Aye: Guenthner, Asleson, Cossette, Lynch and Thomas. (Motion carried 5:0) MOTION: made by Lynch, seconded by Thomas to accept the $2,000 donation for Northwest Area Jaycees designated for use on audio visual upgrades and thanking them for the donation. Voting Aye: Guenthner, Asleson, Cossette, Lynch and Thomas. (Motion carried 5:0) c. Board of Review Training, Administrator Donahue advised Board of Review training will be held March 21, 2013 at Plymouth city hall. 9. Planning /Zoning - None 10. Unfinished Business a. Public Works Facility Project Update i. Site Plan, Planning Case 12 -010, Planner Lindahl presented a verbal report on the facility site plan. MOTION: made by Cossette, seconded by Asleson to approve Resolution 2013 -04 "Approval of a Site Plan for the City of Corcoran Public Works Facility on County Road 19" with an additional landscaping condition. Voting Aye: Guenthner, Asleson, Cossette, Lynch and Thomas. (Motion carried 5:0) ii. Location of Facility on Property addressed in previous discussion, no action required. iii. Summary of Bidding /Quote Process presented by Bruce Ternes (Ebert Construction). Council discussed no action required iv. Authorize Bidding MOTION: made by Thomas seconded by Asleson to approve specifications and plans as presented; authorize publication of request for bids and quotes. Voting Aye: Guenthner, Asleson, Cossette, Lynch and Thomas. (Motion carried 5:0) b. Eligible TIF Projects, engineering report received and discussed. MOTION: made by Thomas, seconded by Lynch to authorize staff to plan out use of TIF funds and use TIF funds for the planning expense. Voting Aye: Guenthner, Asleson, Cossette, Lynch and Thomas. (Motion carried 5:0) c. Draft Trail Haven Paving Survey received and discussed. Staff to reconfigure the survey with council's input and send to residents. d. Lennar Residential Development, no update available. The city is waiting for Lennar to submit a final site plan. e. Three Rivers Park District Agreement. Administrator Donahue gave a verbal update. No action required. f. Fire Department Study. Council discussed. MOTION: made by Thomas, seconded by Lynch to authorize termination of the Hamel Fire service contract on 90 days' notice. Voting Aye: Guenthner, Asleson, Cossette, Lynch, and Thomas. (Motion carried 5:0) City of Corcoran City Council Meeting Minutes February 14, 2013 - 7:00 PM 6a. g. Sewer and Water Utility Project Easements. Council to discuss at a later meeting. 11. New Business a. Hank Escrow Analysis MOTION: made by Lynch, seconded by Asleson to authorize reduction of the escrow balance of $779.82 by 50% and require payment within 6 months. Voting Aye: Guenthner, Asleson, Cossette, Lynch and Thomas. (Motion carried 5:0) b. 2013 Residential Recycling Program MOTION: made by Cossette, seconded by Thomas to approve $34.50 annual recycling charge for residential properties for calendar year 2013. Voting Aye: Guenthner, Asleson, Cossette, Lynch and Thomas. (Motion carried 5:0) c. Cleaning Contract Proposal MOTION: made by Asleson, seconded by Cossette to authorize a building services contract with Carlson Building Services as recommended. Voting Aye: Guenthner, Asleson, Cossette, Lynch and Thomas. (Motion carried 5:0) 41111111111kL , AW d. City Administrator Donahue announced his plan to retire in 2013. Mayor to work with Administrator Donahue to formulate a transition plan. Mayor Guenthner recessed the regular meeting at 10:38 to convene a closed meeting Mayor Guenthner reconvened the regular meeting at 10:58 12. Closed Meeting Ndr a. Code Enforcement — 12 -065 19400 Co Rd 10. City Attorney is directed to seek compliance with regard to the property pursuant to the discussion in the closed meeting. MOTION: made by Asleson, seconded by Thomas to adjourn. Voting Aye: Guenthner, Asleson, Cossette, Lynch, and Thomas. (Motion carried 5:0) Meeting adjourned at 11:00 pm Daniel Donahue — City Administrator FINANCIAL CLAIMS CHECK RANGE 20504 .20537 Agenda Item 7 a -b. Council Meeting Date: 2/2812013 Prepared By:jheinecke Agenda Item: 7a. FUND #500 Escrow Claims Paid to Amount Project name Landform 116.00 Lennar12 -025 Landform 174.00 Tech Ung 12 -028 Landform 232.00 Brent Heinz 12 -027 Landform 174.00 Schmids Hidden Valley 12 -016 Total 696.00 2/11/13 Total Fund #500 1,094.95 (See attached Check Detail Register) Agenda Item: 7b. ALL OTHER FINANCIAL CLAIMS 2/21/13 (See attached Check Detail Register) 12,010.69 TOTAL AUTO DEDUCTIONS TOTAL EXPENDITURES FOR APPROVAL 696.00 34,400.64 57,167.99 92,264.63 H: \City Hall Information \CITY GOVERNMENT \Council, Commissions & Committees \Council Information \Council Claims\2013 Claims Auto Deductions / Electronic Fund Transfer / Other Disbursements Date Paid to Amount 2/11/13 PERA PROS 7,750.02 2/11/13 Citi Street -457 Deferred Comp 2,897.00 2/11/13 Citi Street - Health Care Savings 1,511.24 2/11/13 US Bank - H S A 1,094.95 2/21/13 Net Payroll PR04 31,492.29 2/21/13 Payroll Taxes 12,010.69 2/21/13 Paychex Fee 257.28 2/8/13 ACH Fee 20.00 2/21/13 Mn Dept Rev -Fuel Tax 134.52 Total 57,167.99 Total amount not reflected in Cash Balances Report $57,167.99 696.00 34,400.64 57,167.99 92,264.63 H: \City Hall Information \CITY GOVERNMENT \Council, Commissions & Committees \Council Information \Council Claims\2013 Claims CITY OF CORCORAN 2/22/2013 CASH BALANCE REPORT Cas Grand Total 5,922,062.01 3,903,704.39 CORCORAN, MN 02/22/139:52 AM Page 1 *Check Detail Register© February 2013 Check Amt Invoice Comment r.�id:i J,., +3u.��'., aC u;�s+v. .� a, ,.. .,..n „ Sli..., ... 10100 Farmers State Bank Paid Chk# 020504 2/20/2013 MINNESOTA DEPT OF HEALTH E 100 - 43100 -208 Training and Instruction $128.00 CLASS D CLASS D EXAM .. . ...... ...__ Total MINNESOTA DEPT OF HEALTH $128..00 8/2013 ADAMS PEST CONTROL, INC. `- E 100 - 41941 -210 Operating Supplies (GENERAL) $84.97 780373 Pest Control Quarterly Service Total ADAMS PEST CONTROL, INC. $84,97 ,,..., -,». _, - ,... Paid Chk# 0205 . -. �"�� -- 06 2/28%2013 APPLICANCE CONNECTION E 100- 42400 -300 Professional Srvs (GENERAL) $25.00 12 -210 PERMIT REFUND Total APPLICANCE CONNECTION $25.00 Paid Chk# 020507 228/2013 CARDIAC SCIENCE CORP -- E 100 - 42100 -210 Operating Supplies (GENERAL) $261.77 1555579 BATTERY #555 Total CARDIAC SCIENCE CORP $261.77 Paid Chk# 020508 2/28/2013 CENTERPOINT ENERGY HOUSTON E 100 - 45200 -380 Utility & Services (GENERAL) $268.04 020613 NATURAL GAS E 100 - 41941 -380 Utility & Services (GENERAL) $33.68 0.20613 NATURAL GAS Total CENTERPOINT ENERGY HOUSTON $301.72 PaidChk# 020509 2/28/2013 - , CINTAS -470 E 100- 42100 -223 Building Repair Supplies $27.53 470196455 FLOOR MATS E 100- 41941 -210 Operating Supplies (GENERAL) $127.95 470196456 City Hall Scraper Mat E 100- 43100 -417 Uniforms $58.05 470196457 PW Uniforms E 100- 42100 -223 Building Repair Supplies $27.53 470197748 FLOOR MATS E 100- 45200 -210 Operating Supplies (GENERAL) $15.94 470199747 TOWELS E 100 - 41941 -210 Operating Supplies (GENERAL) $35.69 .470199749 City Hall Scraper Mat E 100 - 43100 -210 Operating Supplies (GENERAL) $27.66 470199750 PW Towels E 100 - 43100 -417 Uniforms $58.05 470199751 PW Uniforms Total CINTAS - 470 $378.40 Paid Chk #020510 2/28%2013 COMCAST- INTERNET E 100 - 41941 -321 Telephone $63.71 020513 CITY HALL INTERNET E 100 - 42100 -321 Telephone $63.70 020513 PD INTERNET Total COMCAST- INTERNET $127.41 Peid Chk# 020511 2/28/2013 ENDS SEPTIC SERVICE '� — -- E 100 - 45200 -221 Maintenance Projects $375.00 10492 PUMP SEPTIC Total ENDE SEPTIC SERVICE $375.00 Paid -Chk# 020512 2/28/2013 ENVIROTECH SERVICES INC E 100 - 41941 -210 Operating Supplies (GENERAL) $546.35 CD201307667 SUPPLIES Total ENVIROTECH SERVICES INC $546.35 Paid Chk# 020513 - 2/28%2013 GRAINGER _ ...... � - - -- E 100 - 41941 -520 Buildings and Structures $280.91 9060104826 SUPPLIES E 100 - 41941 -210 Operating Supplies (GENERAL) $3.37 9066084576 SUPPLIES CORCORAN, MN 02/22/139:52 AM Page 2 *Check Detail Register© February 2013 r Y�.R�L4L,111y t „�ui�.t, i r,.,,r,v,„� ,n Check Amt Invoice Comment v .. . PLANNING . Total GRAINGER ..,uS�+ $284.28 - - . ��� "' n ' Paid Chk# 020514 2/28/2013 GTS 21222 PLANNING -� ° r - -- E 100- 41400 -208 Training and Instruction $230.00 52548785 MCFOA CONFERENCE 21222 Total STS $230.00 $8.33 21222 Pald Chk# 020516 � 2/28!2019 HEALTH PARTNER6 $812.00 21222 - �` —' _ — -- E 100 - 43100 -131 Employer Paid Health $187.62 42704440 EMPLOYER PAID HEALTH E 100 - 42102 -131 Employer Paid Health $102.23 42704440 EMPLOYER PAID HEALTH E 100- 41300 -131 Employer Paid Health $62.54 42704440 EMPLOYER PAID HEALTH E 100 - 41400 -131 Employer Paid Health $34.99 42704440 EMPLOYER PAID HEALTH E 100 - 42100 -131 Employer Paid Health $132.52 42704440 EMPLOYER PAID HEALTH $500.00 Total HEALTH PARTNERS $519.90 Paid Chk # 020516 2/28/2013 HENN CO INFO TECH -- -- -- E 100 - 42100 -323 Radio Units $693.85 130138007 RADIO USER FEE E 100 - 43100 -210 Operating Supplies (GENERAL) $111.30 130138098 RADIO ADMIN FEE Total HENN CO INFO TECH $805.15 Paid 2i2k013 HENN CO SHERIFF -MC129 E 100- 42100 -323 Radio Units $48.09 1000024695 RADIO TECH SUPPORT E 100- 42100 -301 Prisoner $15.00 1000024941 PRISONER FEE Total HENN CO SHERIFF -MC129 $63.09 Paid Chk# 020518 2/28/2 '13 i 0 JOHN DEERE GOVT &NATL SALES E 100 - 45200 -210 Operating Supplies (GENERAL) $16,267.45 112540073 Z TURN MOWER Total JOHN DEERE GOVT 8 NATL SALES $16,267.45 PaidChk# 020519 2%28/2013 LAKES GAS CGMPANY E 100- 43100 -380 Utility & Services (GENERAL) $78.85 238659 FUEL Total LAKES GAS COMPANY $78,85 ,.... -rc. , „ -_ ., . -.. Paid -Chk# 020520 2/2 ��'� - 8/2013 LANDFORM� G500-20300 Len nar Family of Builders $116.00 21222 PLANNING E 100 - 41910 -300 Professional Srvs (GENERAL) $232.00 21222 MAPLE HILL ESTATES G 500 -20303 Tech Ung $174.00 21222 PLANNING G 500 -20302 Brent Heinz $232.00 21222 PLANNING G 500 -20294 Schmids Hidden Valley 2nd 12 -0 $174.00 21222 PLANNING E 100 - 41910 -300 Professional Srvs (GENERAL) $8.33 21222 GENERAL E 411- 43100 -300 Professional Srvs (GENERAL) $812.00 21222 PLANNING E 100 - 41910 -300 Professional Srvs (GENERAL) $58.00 21228 PATNODE AG PRESERVE 13 -001 E 100 - 41910 -300 Professional Srvs (GENERAL) $4,470.85 21228 GENERAL E 100- 41910 -300 Professional Srvs (GENERAL) $116.00 21228 TMOBILE 13 -002 E 100 - 41910 -300 Professional Srvs (GENERAL) $200.00 21228 MEETINGS Total LANDFORM $6,59318 Paid -Chk# 020521 2/28/2013 LMCIT E 100 - 42100 -364 Workers Comp Insurance $500.00 C0018943 CLAIM DEDUCTIBLE CORCORAN, MN 02/22/13 9:52 AM Page 3 *Check Detail Register© February 2013 Check Amt Invoice Comment Total LMCIT $500.00 ,,,, ,s,. .......,..m.. ., -, 1212 ,12 -_, 1212 1212,., ..... Paid Chk# 020522 2/28/2013 LOFFLER E 100 - 41951 -207 Computer Supplies $300.00 1522459 SERVER MAINTENANCE E 100- 41941 -207 Computer Supplies $356.94 1524998 COPIER Total LOFFLER $656.94 w_ Paid Chk #020523 2 /28 /2013LUBRICATION TECHNOLOGIES INC - -- E 100 - 42100 -212 Motor Fuels $50.01 2166486 FILTERS --....----...... -- Total LUBRICATION TECHNOLOGIES INC $50.01 „�,.�- 1212..,.,. - 12,.,12 -_ ..„ 1212 - -_ 1212 Paid Chk# 020524 2/281, MENARDS MAPLE GROVE E 100- 43100 -210 Operating Supplies (GENERAL) $154.18 11534 SUPPLIES E 100 - 42100 -210 Operating Supplies (GENERAL) $27.74 11890 SUPPLIES E 100- 43100 -210 Operating Supplies (GENERAL) $65.95 201313 SUPPLIES .................._....... Total MENARDS MAPLE GROVE $247_87 1212 .e.,...„, - _1.1..,12, 12,12- 12,12, 12,12 Paid Chk# 020525 2/28/2013 METRO WEST INSPECTION SERVICES E 100 - 42400 -300 Professional Srvs (GENERAL) $285.72 021013 FEBRUARY 2013 otal METRO WEST INSPECTION SERVICES $285.72 E 100 - 41941 -200 Office Supplies (GENERAL) $56.47 64457506001 SUPPLIES E 100- 42100 -200 Office Supplies (GENERAL) $93.58 64457506001 SUPPLIES E 100 - 42100 -200 Office Supplies (GENERAL) $36.52 644575176001 SUPPLIES E 100- 41941 -200 Office Supplies (GENERAL) $11.85 644575176001 SUPPLIES Paid Chk# 020529 -- 2/28/2013 - SAFETY TRAIN Total OFFICE DEPOT $198.42 E 100 - 43100 -208 Training and Instruction 1212. ....,w.-. - -°-" Paid Chk# 020527 ,1212 ., ., ,1212.,. 2/28/2013 PLEAA E 100 - 42100 -433 Dues and Memberships $35.00 STEELMAN -13 ANNUAL DUES Total PLEAA $35.00 P INC ' ��' ' E 201- 42100 -210 Operating Supplies (GENERAL) $615.99 8687600 -01 PARTS Total POLARIS SALES INC $615.99 Paid Chk# 020529 -- 2/28/2013 - SAFETY TRAIN -" - 1212. 1212.. _. 1212... 1212.... E 100 - 43100 -208 Training and Instruction $1,800.00 2013 ANNUAL TRAINING Total SAFETY TRAIN _ $1,800.00 _1212 Paid Chk# 020530 2/28/2013 �SCHARBER &SONS " - "' - - -- E 100 - 43100 -210 Operating Supplies (GENERAL) $24.28 P02107 SUPPLIES Total SCHARBER 8 SONS $24,28 Paid Chk# 020531 2/28/2013 SPRINT E 100 - 41920 -210 Operating Supplies (GENERAL) E 100- 42100 -321 Telephone E 100 - 43100 -321 Telephone E 100 - 41300 -210 Operating Supplies (GENERAL) $17.53 391283315 -13 CELL SERVICE $246.16 391283315 -13 CELL SERVICE $194.91 391283315 -13 CELL SERVICE $17.53 391283315 -13 CELL SERVICE CORCORAN, MN 02/22/139:52 AM Page 5 *Check Detail Register© February 2013 Check Amt Invoice Comment Fund Summary ' 10100 Farmers State Bank 100 GENERAL FUND $32,957.81 201 RESERVES DONATION FUND $615.99 401 TAX INCREMENT FINANCING $14.84 411 PUBLIC WORKS FACILITY $812.00 500 ESCROW HOLDING FUND $696.00 $35,096.64 City of Corcoran Consultant Summary 2/2812013 Name Invoice Date Check # Amount Due Landform Metro West Inspection Services 02/15/13 02/10/13 20520 20525 6,593.18 285,72 Total 6,878.90 H: \City Hall Information \CITY GOVERNMENT \Council, Commissions & Committees \Council Information \Council Claims \2013 Claims City of Corcoran 8200 County Road 116 Corcoran, MN 55340 C A N D From Site to Finish 105 Sou21'1 Fifth Avenue Suife 513 Minneapolis, NIN 55401 Corcoran Planning Services: General COR1201 O.GEN Contracf/PO #: For Services Rendered Through 1/31/2013 F O R M i Tel: 612- 252 -9070 Fax: 611- 252 - %17/ Web: londfcrrnjwt 21222 02/12/2013 61 - Meeting with Applicant Professional Services Employee Hours Rate Amount Lindahl, Kendra S 4.00 116.00 $464.00 Total Professional Services for 61 $464.00 Total Charges for 61 - Meeting with Applicant $464.00 90 - Reports /Presentation ,. Prciessionai jervice5 Employee Hours Rate Amount Lindahl, Kendra S 3.00 116.00 $348.00 Total Professional Services for 90 $348.00 Total Charges for 90 - Reports /Presentation $348.00 Total Charges for .010 - Public Works Building PP /FP /SP (city file 12 -010) $812.00 .016 - Schmid Hidden Valley 2nd Addition - Topo/Wetland Waiver, PP and FP (City File 12.016) 30 - Review Application Professional Services Employee Hours Rate Amount Lindahl, Kendra S 1.50 116.00 $174.00 Total Professional Services for 30 $174.00 Total Charges for 30 - Review Application $174.00 Project COR12010.GEN Corcoran Planning Services: General Reimbursable 21222 Payee Invoice Unit Rate Qty Markup Amount L.indahl, Kendra S 204 .56 15.00 1.00 $8.33 Total Charges for - Total Reimbursable for $8.33 Total Charges for $8.33 $8.33 Invoice Amount $1,748.33 Please remit to: Landform, 105 South Fifth Avenue, Suite 513, Minneapolis, MN 55401 Page 3 of 3 Bill Review Report - Landform Professional Services, LLC As of Thursday, January 31, 2013 COR12010.GEN Corcoran Planning Services:General Date City of Corcoran P.O. If 8200 County Road 116 Prin. Lazar, Darren B Corcoran MN, 55340 P.M. Lindahl, Kendra S subcommittee meeting to discuss site plan Rate Schedule Lindahl, Kendra S Principal 2013 Corcoran City Rates Billing Description Unbilled Detail Date COR12010.GEN- .010 -61 Meeting with Applicant 232.00 Labor 116.00 Lindahl, Kendra S Principal 1/10/2013 subcommittee meeting to discuss site plan 116.00 Lindahl, Kendra S Principal 1/14/2013 issues with final plat1site plan 116.00 Lindahl, Kendra S Principal 1 /1 712 01 3 distribute plans Lindahl, Kendra S Principal 1/1812013 review plans/coordinate agency distribution Other Direct Charges Total Labor COR12010.GEN- .010 -90 Reports /Presentation Labor Lindahl, Kendra S Principal 1/26/2013 PC report Hrs /Units Rate Markup Hold Charge 0.00 464.00 2.00 11.6.00 0.00 232.00 1.00 116.00 0.00 116.00 0.50 116.00 0.00 58.00 0.50 116.00 0.00 58.00 4.00 0.00 464.00 Other Direct Charges 0.00 348.00 1.00 116.00 0.00 116.00 Lindahl, Kendra S Principal 1/31/2013 2.00 116.00 0.00 232.00 PC report and narrative Lindahl, Kendra S Principal 1/31/2013 0.50 116.00 follow up from surveyor Total Labor 3.00 0.00 348.00 wrciauiu �eiv- uiu -ae Cnperise5 0.00 8.33 Other Direct Charges - Exp Code:: Reimb Project Mileage ;, X15.00 '0.00 58 -33 Lindahl, Kendra S 1/10/2013 15.00 0.56 1.00 0.00 8.33 Subcommittee meeting - PW building Total Other Direct Charges 15.00 0.00 8.33 COR12010.GEN- .016 -30 Review Application 2112/2013 5:34:29 PM 0.00 174.00 0.00 116.00 0.00 58.00 0.00 174.00 1 oft Labor Lindahl, Kendra S Principal 1/16/2013 1.00 116.00 distribution of plans Lindahl, Kendra S Principal 1/31/2013 0.50 116.00 follow up from surveyor Total Labor 1.50 2112/2013 5:34:29 PM 0.00 174.00 0.00 116.00 0.00 58.00 0.00 174.00 1 oft Bill Review Report - Landform Professional Services, LLC As of Thursday, January 31, 2013 COR12010.GEN- .022 -90 Reports /Presentation Labor Lindahl, Kendra S Principal 1/17/2013 1.00 116.00 staff report for CC meeting Lindahl, Kendra S Principal 1/30/2013 1.00 116.00 meeting with Jeff Carson, Dan and Barry Total Labor 2.00 COR12010.GEN- .025 -90 Reports /Presentation Labor Lindahl, Kendra S Principal 1/17/2013 1.00 116.00 staff report for council meeting Total Labor 1.00 COR12010.GEN- .027 -90 Reports /Presentation Labor 232.00 0.00 Lindahl, Kendra S Principal 1/15/2013 2.00 116.00 review application and draft staff report/resolution and prepare packet 0.00 116.00 Total Labor 2.00 COR12010.GEN- .028 -90 Reports /Presentation 116.00 0.00 Labor 0.00 232.00 Lindahl, Kendra S Principal 1/15/2013 1.50 116.00 council report/packet 0.00 174.00 0.00 Total Labor 1.50 0.00 232.00 0.00 116.00 0.00 116.00 0.00 232.00 0.00 116.00 0.00 116.00 0.00 116.00 0.00 232.00 0.00 232.00 0.00 232.00 0.00 174.00 0.00 174.00 0.00 174.00 2/12/2013 5:34:29 PM 2 of 2 City of Corcoran 8200 County Road 116 Corcoran, MN 55340 Corcoran Planning Services COR13011.GEN Contract/PO #: For Services Rendered Through 1131/2013 .001 - Beverly J. Patnode Trust Ag Preserve (city file 13 -001) 30 - Review Application Professional Services INVOICE 21228 02/15/2013 Employee Hours Rate Amount Lindahl, Kendra S� _ .50 116.00 $58.00 Total Professional Services for 30 $58.00 Total Charges for 30 - Review Application $58.00 Total Charges for .001 - Beverly J. Patnode Trust Ag Preserve (city file 13 -001) $58.00 .002 - T•Mobile Admin Permit and SPA at 7205 CR 101 (city file 13 -002) 30 - Review Application Professional Services Employee Hours Rate Amount Lindahl, Kendra S 1.00 116.00 $116.00 Total Professional Services for 30 $116.00 Total Charges for 30 - Review Application $116.00 Total Charges for .002 - T- Mobile Admin Permit and SPA at 7205 CR 101 (city file $1.16.00 13 -002) F O R M w INVOICE 21228 02/15/2013 Employee Hours Rate Amount Lindahl, Kendra S� _ .50 116.00 $58.00 Total Professional Services for 30 $58.00 Total Charges for 30 - Review Application $58.00 Total Charges for .001 - Beverly J. Patnode Trust Ag Preserve (city file 13 -001) $58.00 .002 - T•Mobile Admin Permit and SPA at 7205 CR 101 (city file 13 -002) 30 - Review Application Professional Services Employee Hours Rate Amount Lindahl, Kendra S 1.00 116.00 $116.00 Total Professional Services for 30 $116.00 Total Charges for 30 - Review Application $116.00 Total Charges for .002 - T- Mobile Admin Permit and SPA at 7205 CR 101 (city file $1.16.00 13 -002) Project COR13011.GEN Corcoran Planning Services 90 -City Business Professional Services 21228 Employee Hours Rate Amount Lindahl, Kendra S 37.00 116.00 $4,292.00 Trosen, Scott C 1.00 135.00 $135.00 Total Professional Services for $4,427.00 Total Charges for $4,427.00 Total Charges for 90 - City Business $4,427.00 MTG - City Meeting Professional Services Employee Lindahl, Kendra S Total Professional Services for Total Charges for MTG - City Meeting Reimbursable Reimbursabies Hours Rate Amount 2.00 100.00 $200.00 $200.00 Total Charges for $200.00 $200.00 Payee Invoice Unit Rate Qty Markup Amount Lindahl, Kendra S 204 _ .56 42.00 1.00 $23.31 Lindahl, Kendra S 204 .56 37.00 1.00 $20.54 Total Reimbursable for $43.85 Total Charges for $43.85 Total Charges for - $43.85 Invoice Amount $4,844.85 Please remit to: Landform, 105 South Fifth Avenue, Suite 513, Minneapolis, MN 55401 Page 2 of 2 Bill Review Report - Landform Professional Services, LLC As of Thursday, January 31, 2013 Project CORI 3011.GEN Corcoran Planning Services Client City of Corcoran 8200 County Road 116 Corcoran MN, 55340 Billing Description Unbilled Detail Date COR13011.GEN- .001 -30 Review Application Labor Lindahl, Kendra S Principal 1/18/2013 complete letter Total Labor CORI 3011.GEN- .002 -30 Review Application Labor Lindahl, Kendra S Principal 1/26/2013 review application and draft incomplete letter Total Labor CORI 3011.GEN -90 City Business Rate Markup Hold Charge Labor Lindahl, Kendra S Principal 1/2/2013 office hours and misc. calls/questions 0.00 58.00 Lindahl, Kendra S Principal 1/3/2013 zoning calls/questions Lindahl. Kendra S Principal 114/2013 mama gs questions 0.00 116.00 Lindahl, Kendra S Principal 10/2013 DRC agenda/wellhead protection issue from Rogers/misc. zoning calls Lindahl, Kendra S Principal 1/8/2013 Rockford school meeting/survey questions/hunter road questions Lindahl, Kendra S Principal 1/9/2013 archiving old planning files 0.00 58.00 Lindahl, Kendra S Principal 1111/2013 zoning Questions 1.00 116.00 Lindahl, Kendra S Principal 1/14/2013 DRC Agendafzoning questions 0.00 464.00 Lindahl, Kendra S Principal 1/15/2013 project status memo /zoning questions P.O. # Prin. Schunicht, Robert G P.M. Lindahl, Kendra S Rate Schedule 2013 Corcoran City Rates Firs /Units Rate Markup Hold Charge 0.00 58.00 0.50 116.00 0.00 58.00 0.50 0.00 58.00 0.00 116.00 1.00 116.00 0.00 116.00 1.00 0.00 116.00 0.00 4,505.54 5.00 116.00 0.00 580.00 0.50 116.00 0.00 58.00 0.50 116.00 0.00 58.00 1.00 116.00 0.00 116.00 4.00 116.00 0.00 464.00 6.00 116.00 0.00 696.00 0.50 116.00 0.00 116.00 0.50 116.00 0.00 58.00 1.00 116.00 0.00 116.00 2/15/2013 2:03:45 PM 1 of 2 Bill Review Report - Landform Professional Services, LLC As of Thursday, January 31, 2013 Lindahl, Kendra S Principal 1/16/2013 6.00 116.00 0.00 696.00 archiving /council memos Lindahl, Kendra S Principal 111712013 1.00 116.00 0.00 116.00 correspondence Lindahl, Kendra S Principal 1/18/2013 1.00 116.00 0.00 116.00 zoning calls Lindahl, Kendra S Principal 1122/2013 0.50 116.00 0.00 58.00 zoning questions Lindahl, Kendra S Principal 1/23/2013 4.00 116.00 0.00 464.00 office hours /zoning calls Lindahl, Kendra S Principal 1/25/2013 0.50 116.00 0.00 58.00 zoning calls Lindahl, Kendra S Principal 1/26/2013 1.00 116.00 0.00 116.00 DRC agenda and PC Agenda Lindahl, Kendra S Principal 1/28/2013 1.00 116.00 0.00 116.00 zoning calls Lindahl, Kendra S Principal 1/29/2013 1.00 116.00 0.00 116.00 zoning calls Lindahl, Kendra S Principal 1/30/2013 2.00 116.00 0.00 232.00 office hours Trosen, Scott C Survey Department 1129/2013 1.00 135.00 0.00 135.00 Manager Toomey Sketch for easement and boundary Total Labor 38.00 Other Direct Charges Exp Code: Reimb Project Mileage 37.00 Lindahl, Kendra S 1/8/2013 37.00 0.56 1.00 meeting with Rockford school Total Other Direct Charges 37.00 COR13011.GEN -99 City Expenses Exp Code: Reimb Project Mileage Lindahl, Kendra S city council meeting COR13011.GEN -MTG City Meeting Lindahl, Kendra S council meeting Lindahl, Kendra S council meeting 2/15/2013 2:03:45 PM Other Direct Charges 42.00 1/1012013 42.00 0.56 1.00 Total Other Direct Charges 42.00 Labor Principal 1110/2013 1.00 100.00 Principal 1/24/2013 1.00 100.00 Total Labor 27 0.00 4,485.00 0.00 20.54 0.00 20.54 0.00 20.54 0.00 23.31 0.00 23.31 0.00 23.31 0.00 23.31 0.00 200.00 0.00 100.00 0.00 100.00 0.00 200.00 2of2 TERMS: PLEASE DETACH ANDRE TURN WITH YOUR REMITTANCE $ DATE CHARGES AND CREDITS BALANCE FORWARD V131 V1 56 V'186 205 i211- 2013 01 23120 Garrison 9815 Rush Creek 9715 Tamiami Horseshoe INVOICE TOTAL: ®mm NEW , �F'f[ZO 26125 72 aam_z S ? METRO WEST INSPECTION PAYLASTAMOUNT SERVICES, INC. IN THIS COLUMN 8a. CITY OF CORCORAN PLANNING COMMISSION MEETING 7:00 PM — THURSDAY, FEBRUARY 7, 2013 MINUTES Present: Commissioners — Darrell Krueger, Meredith Wu, Nell Kadlec Commissioners -Elect Dean Jacobs and Dorothy Theis (arrived at 8:30 pm) Absent — Ricky Ravnhold Others present for the meeting — Council Liaison Rich Aseslon, Administrator Dan Donahue, City Planner Kendra Lindahl Dean Jacobs - Donahue administered the Oath of Office Appointment of Chair and Vice Chair • Motion by Kedlac and Seconded by Wu to elect Dean Jacobs as Planning Commission Chair. Voting Aye: All (Motion carried 4:0) • By consensus, Commissioners decided to hold the election of Vice -Chair at next regular meeting 3. Call to Order - Dean Jacobs called the meeting to order at 7:03 pm 4. Pledge of Allegiance 5. Open Forum - None 6. Approval of: a. Agenda - Motion by Kadlec seconded by Jacobs to approve agenda as presented.Voting Aye: All (Motion carried 4:0) b. Motion made to approve minutes of September 6, 2012 by Krueger seconded by Wu. Voting Aye: All (Motion carried 4:0) 7. Unfinished Business: - None 8. New Business a. *Public Hearing. Consider a City- initiated amendment to Zoning Ordinance Section 1070.020 regarding Conditional Use Permit (CUP) City File 12 -017 i. Staff Report — City Planner Kendra Lindahl went over her staff report. ii. Chair opened the Public Hearing iii. Public Comment: None. iv. Motion by Krueger, seconded by Kedlac to close the public hearing. Voting Aye: All (Motion carried 4:0) v. Discussion. Suggestion to change Item B, first sentence to include the word No at beginning of the sentence and change "city" to City Council at end of first sentence. vi. Motion by Krueger and seconded by Kedlac to approve ordinance amendment and the Finds of Fact as presented and with corrections as noted above. Voting Aye: All, (Motion carried 4:0) b. Approval of Site Plan for new Public Works Facility on Lot 1, Block 1, Roehlke Addition (City File 12 -010) i. Staff Report. Planner reviewed the report on the project ii. Public comment: None 8a. iii. Commission Discussion. Commissioners discussed several points about the site plan. Comments mostly centered on providing adequate landscaping on the south side of site and to provide adequate signage for users of the Three Rivers Trail to look for vehicle entering and leaving the Public Works Facility. Regarding the landscaping, It was explained that this is the side that would be expanded in the future and that city staff would be putting in landscaping at this end. iv. Motion by Krueger and seconded by Wu to approve Resolution 2013 -XX and adding additional provision #8- providing for signage at crossing of driveway and Three Rivers Trail. Voting Aye: All (Motion carried 4:0) v. Motion by Krueger and seconded by Wu to approve site plan as presented. Voting Aye: All (Motion carried 4:0) 9. Reports: a. *Planning Project Update b. Liaison Report (Asleson) • Council Agenda of 2/14/13 discussed • TIF options and possible uses /projects using surplus c. Other Business — Dorthey Theis administered the oath of office 10. Adjournment - Motion to adjourn Krueger and seconded by Kedlac. Voting Aye — All (Motion Carried 5:0) Meeting adjourned at (9:OOPM. Submitted by Dan Donahue City Administrator MEMORANDUM DATE February 20, 2013 TO Dan Donahue cc City Council, Planning Commission FROM Kendra Lindahl, City Planner RE Active Corcoran Planning Applications r r • • L A N D F From Site to Finish 105 South Fifth Street, Suite 513 Minneapolis, MN 55401 The following is a summary of project status for current, active projects: 0 R M • Tel: 612 - 252 -9070 Fax: 612 - 252 -9077 www.landform.net 1. Armbruster Topography and Wetland Waiver (city file no. 09 -011). An application has been received for a waiver from the topography and wetland requirements and was reviewed by the City Council on November 23, 2009. The City Council expressed concerns about the concept and directed the applicant to revise the concept plan. The applicant submitted a letter extending the review period until January 1, 2014. Staff recommends that no further extensions be provided. 2. Schmid's Hidden Valley 2 "d Addition Topography /Wetland Waiver, Preliminary Plat and Final Plat at 21820 Oakdale Drive (PID 04- 119 -23 -34 -0007, 04- 119 -23 -42 -0002 and 04- 119 -23 -42 -0003) (City File No. 12 -016). The application for topography and wetland delineation waiver was approved at the September 27th Council meeting. The plat applications are now complete and tentatively scheduled for Planning Commission and City Council review in April. 3. Corcoran Public Works Site Plan Approvals (City File 12 -010). The City application for a preliminary and final plat to create a new lot for the public works facility and an outlot for the remaining land that will be retained by the Roehlke's and a rezoning to Public /Institutional (P -1) to accommodate this use was approved by the City Council on September 27th. The city closed on the property on October 15th and work is continuing on the site plan design. Site Plan was approved by the City Council on February 14tH 4. Zoning Ordinance Amendment to Section 1070.020 regarding Conditional Use Permit Amendments (City file no. 12 -017). On October 11th, the City Council directed staff to prepare a zoning ordinance amendment to allow conditional use permit amendments to be processed administratively rather than through the public hearing process as currently required. This item was scheduled for a public hearing at the Planning Commission on December 6th. No action was taken because there was no quorum. We rescheduled this item for the February 7th Planning Commission meeting. The Council will review this at the February 28th City Council meeting. 5. Site Plan and Variance for Maple Hill Estates Community Center) (City File 12 -022). The landowner and the City received a CDBG grant to construct a new community center on land north of the manufactured home park that is also owned by the park owner. This new building is in the process of being designed. The building is likely to straddle a lot line or at minimum require a setback variance. The survey has been completed and the site plan is currently being prepared. City staff is meeting with the landowner to review the plans on February 27th and then the landowner will submit a site plan and variance application. This item could be scheduled for April or May Planning Commission and City Council review. Landform , SensiblyGreen and Site to Finish® are registered service marks of Landform Professional Services, LLC. 1 6. Feasibility Study for Lennar (City File 12 -025). The applicant requested that the City conduct an infrastructure feasibility study regarding property west of CR 101 and north of Hackamore. This is part of the property that was previously proposed as the "Hedgestone" development. The applicant has provided an escrow and the City Engineer has begun work on feasibility study. The study is expected to be completed at the end of February /early March. Next steps would be completion of an EAW and PUD sketch plan, then a preliminary plat and PUD preliminary development plan and finally a final plat, PUD final development plan and rezoning to PUD. 7. Administrative Permit for Special Home Occupation for Jacob Shoulak at 20475 CR 10 (23 -119- 23 -23 -0007) (City File 12 -026). This application is to allow an in -home recording studio. The application is currently incomplete but when a complete application is received, it will be processed administratively. 8. Agriculture Preserve Initiation and Expiration for Beverly J. Patnode Trust at 22650 County Road 50 (19- 119 -23 -41 -0002) (City File 13 -001). The landowner was briefly out of the Agricultural Preserve program while a parcel was subdivided for Brian and Christina Patnode as MTP West Acres. The landowner is now reenrolling the farmstead in the Agricultural Preserve Program and initiating expiration (in 8 years). This is scheduled for the March 28th Council meeting. Also, there are a number of projects that have been approved, but are still not filed and closed out: 1. Ess Addition (city files 05 -017, 08 -003 and 12 -024). The City Council granted an after - the -fact extension for this final plat at their November 29, 2012 meeting. The applicant is now working to file the required documents to close out this file. 2. Corcoran Business Park (city file 06 -005). The City Council granted a one year extension to the final plat approval, which expired on April 12, 2011. Staff has spoken to the applicant and is still working to close out this project. 3. Northern Natural Gas Administrative Permit (city file 09 -009). An administrative permit for a meter station was approved and is under construction. The city will retain the escrow account until the project is completed to ensure that the project is completed according to the plans. The majority of the improvements and conditions of approval have been met. However, the landscaping has not yet been installed. Northern Natural Gas indicates that there are still connections that need to be made on site and landscaping cannot be installed until completed. City staff was notified that the landscaping was installed on site and conducted an inspection June 3, 2011. The landscaping and all other improvements were installed per City requirements. Staff will begin the project closeout process after the landscape guarantee period expires in 2013. Satellite Industries Site Plan Amendment, Conditional Use Permit Amendment, Lot Consolidation and Easement Vacation (city file 10 -007). On September 23rd the City Council approved Resolutions 2010 -37, 2010 -38 and 2010 -39 approving the request with a number of conditions. The applicant has addressed those conditions and has submitted a building permit application and has begun site work. Staff inspected the site on October 12th and found that the major site improvements had been made, but there are several items that still have to be addressed. We have discussed these items with the landowner. The city has a financial guarantee in place to ensure completion. 5. Park Place Storage After - the -Fact Extension of Approvals (city file no. 10 -008). On September 23, 2010, the City Council approved a site plan and conditional use permit amendment for Park Place Storage to construct the 18th and final mini - storage building on that site. The approvals expired on September 23, 2011. The applicant contacted the City and requested a one year extension until September 23, 2012. The conditions have been met and a building permit was issued in September. The applicant has completed most of the site work with final items to be completed in the spring. 6. Rocks N Blocks Site Plan Amendment and Conditional Use Permit (city file no. 10 -012). An application was received for a Conditional Use Permit and Site Plan Amendment to continue operation of a business with outside storage at 20010 75th Avenue North. The application was approved by the City Council on June 23rd. This was approved as a way to correct a code enforcement issue. No work MEMORANDUM has been done on site to correct the code violations. The applicant has not yet complied with the conditions of approval and has asked for a 3 month extension. The approvals expired on September 23, 2012. The applicant is working to complete the site improvements. 7. Hope Ministries Conditional Use Permit for Cemetery and Vacation of Drainage & Utility Easement at 19951 Oswald Farm Road (city file 12 -002). Hope Ministries has submitted a request for a conditional use permit to allow a cemetery west of the existing church. The application was approved by the City Council on March 22nd and site work had begun. 8. Topography and Wetland Waiver for Brent Heinz at 20801 CR 117 (03- 119 -23 -14 -0002) (City File 12 -027). This application was approved by the City Council on January 24th. 9. Site Plan Amendment for setback flexibility for Tech Ung at 6970 Oak Ridge Road (26- 119 -23- 44 -0005) (City File 12 -028). The ordinance allows the City Council to approve a setback of less than the required 100 feet adjacent to major roads when significant landscaping is provided. This item was approved by the City Council on January 24t" MEMORANDUM STAFF REPORT / Code Enforcement Agenda Item: 8c Council Meeting: Prepared By: February 28, 2013 Mike Pritchard Topic: Action Required: CODE ENFORCEMENT REPORT — January 2013 Information Only 2012 Summary and 3 Year Statistics Complaints and Concerns Permits and Zoning Referred to Public Building Complaints Nuisiance Grass & Misc. Cases Grading or Overweight Concerns Junk /Junk Weed Animal Home Signs Works, Compaints Referred to Permits - Building Driveway M is c. /Ag Vehicle Violations Occupations Metro West, Zoning Permits Permits Total Vehicles Control Concerns City Attorney Permits Permits or City review Engineer 6 1 0 0 0 2 3 3 0 0 9 1 0 0 Code Enforcement Issues: Complaint 12 -018: Exterior Storage Violations, Business Operating Without a Conditional Home Occupation License at 19xxx County Road 30. No Update Complaint 12 -021: Exterior Storage and Zoning District Violations at 20xxx County Road 10 *See staff report. Complaint 12 -031: Hazardous Building at 20xxx County Road 10. No Update. Complaint 12 -065: Multiple Code Violations 19xxx County Road 10. Meeting with property owner set for Monday, February 25. 2012 Summary: Jan 1 - May 13: 5 code compliance complaints. 3 unresolved and forwarded to City Attorney; 1 of which has since been resolved. May 14 - Dec 31: 140 complaints; for a 2012 total of 145. These complaints ranged from simple weed /tall grass violations and junk vehicles to home occupations, work without a permit and some much more complicated cases. Many of these complaints had multiple code violations. We resolved and closed -out all of 2011's complaints and have resolved all but 10 complaints from 2012. Three (3) of these are with the City Attorney, two (2) are abandoned homes that we will continue to monitor, one (1) came in at the end of the year and is still in process, and the other four (4) are listed above. The City has made great strides this past year with registering, tracking, following -up, and resolving complaints and compliance issues. We will continue to work with our residents, property owners, and business owners to alleviate concerns and non - compliances as well as educate them on the importance and need for compliance. 3 Year Statistics: 2010: 42 complaints 2011: 37 complaints 2012: 145 complaints *Up nearly 400% from 2010 and 2011 CITY OF CORCORAN 2012 PERFORMANCE REPORT - GENERAL FUND YEAR ENDING 12/31/2012 UNAUDITED 8d. Account Description 2011 Actual 2012 Budget 2012 Actual Amount Remaining Budget Difference Comments REVENUE Other General Government R 100 - 41900 -31020 Delinquent Property Taxes 40,730.06 40,000.00 22,419.35 17,580.65 -44% R 100 - 41900 -31040 Fiscal Disparities 205,805.49 0.00 187,148.86 - 187,148.86 100% R 100 - 41900 -31100 General Property Taxes 2,124,824.71 2,506,458.00 2,266,708.70 239,749.30 -10% R 100 - 41900 -31810 Cable Franchise Fee 37,252.86 32,000.00 38,195.52 - 6,195.52 0% R 100 - 41900 -32110 Liquor License Fee 18,260.00 18,200.00 18,270.00 -70.00 0% R 100 - 41900 -33402 Homestead Credit 0.00 0.00 0.00 0.00 0% R 100 - 41900 -33420 Ag Preserve Credit 4,788.69 0.00 10,577.37 - 10,577.37 0% R 100 - 41900 -33421 PERA State Aid 1,845.00 1,845.00 1,845.00 0.00 0% R 100 - 41900 -33422 Other State Grants and Aids 17,369.89 0.00 0.00 0.00 0% R 100 - 41900 -34000 Charges for Services 65.00 0.00 95.00 -95.00 0% R 100 - 41900 -34103 Zoning /Land Use Ap I Fee 6,265.64 5,000.00 7,180.00 - 2,180.00 30% R 100 - 41900 -34105 Copies /Maps 152.40 100.00 100.39 -0.39 0% R 100 - 41900 -34107 Special Assessment Search 75.00 50.00 50.00 0.00 0% R 100 - 41900 -34108 TIF Administration 8,000.00 8,500.00 0.00 8,500.00 0% R 100 - 41900 -34405 Clean Up Day Income 1,060.00 1,000.00 708.71 291.29 -29% R 100 - 41900 -36200 Miscellaneous Revenues 7,694.56 1,000.00 16,733.26 - 15,733.26 754% Workers Comp dividend R 100 - 41900 -36210 Interest Earnings 4,070.71 6,000.00 2,555.18 3,444.82 -33% R 100 - 41900 -36220 Other Rents and Royalties 7,812.00 3,750.00 10,848.00 - 7,098.00 189% Cropland rental R 100 - 41900 -36230 Donations 1 1,175.00 1 0.00 1 4,575.00 1 - 4,575.00 100% $ 2,487,247.01 $ 2,623,903.00 $ 2,588,010.34 City Hall Operations R 100 - 41941 -34101 Facility Rental 4,442.50 4,500.00 5,890.00 - 1,390.00 0% R 100 - 41941 -36200 Miscellaneous Revenues 2,778.48 0.00 1,228.80 - 1,228.80 100% Mailbox posts, Wright Hennepin Elect rebate $ 7,220.98 $ 4,500.00 $ 7,118.80 Police R 100 - 42100 -32240 Animal Licenses 0.00 0.00 0.00 0.00 0% R 100 -42100 -33423 Police Aid 46,565.00 47,000.00 45,308.00 1 1,692.00 -4% R 100 - 42100 -33424 Police POST Board Train Reimb 3,787.26 4,000.00 3,320.90 679.10 -17% R 100 - 42100 -33620 Other County Grants /Aid 11,247.68 10,000.00 10,575.05 - 575.05 -30% Pass through only R 100 - 42100 -34200 Police Permits 1,755.00 1,500.00 2,417.00 - 917.00 33% R 100 - 42100 -34201 Police Serviced Charges 5,847.50 5,000.00 7,162.50 - 2,162.50 20% Pass through only R 100 - 42100 -34202 Police Reports /Fees 1,086.00 1,500.00 756.00 744.00 -50% R 100 - 42100 -34204 Training 0.00 0.00 120.00 - 120.00 100% R 100 - 42100 -35101 Fines 106,500.41 90,000.00 78,939.70 11,060.30 -17% R 100 -42100 -36220 Miscellaneous Revenues 3,713.46 - 3,713.46 100% Speed trailer insurance claim R 100 - 42100 -36230 Donations 1 1,345.00 0.00 0.00 0.00 0% $ 178,133.85 $ 159,000.00 $ 152,312.61 Building Inspection R 100 - 42400 -32210 Bldg /Plan Review Fees $ 83,590.10 $ 60,000.00 $ 56,020.82 $ 3,979.18 -17 % Public Works R 100 - 43100 -33418 Muni State Aid St Maintenance 129,363.90 130,000.00 126,236.00 3,764.00 -3 % R 100 -43100 -34300 Public Works Permits /Fees 1 1 3,845.001 1 3,000.00 3,930.00 - 930.00 1 1 -24% 1 of 8 CITY OF CORCORAN 2012 PERFORMANCE REPORT - GENERAL FUND YEAR ENDING 12/31/2012 UNAUDITED 8d. Account Description 2011 Actual 2012 Budget 2012 Actual Amount Remaining Budget Difference Comments R 100 - 43100 -34301 Dust Control 78,888.48 55,530.00 73,169.84 - 17,639.84 32% R 100 - 43100 -36200 Miscellaneous Revenues 72,520.75 0.00 16,289.20 - 16,289.20 100% Property Maintenance & Trailer Ins $ 284,618.13 $ 188,530.00 $ 219,625.04 Ice & Snow Removal R 100 - 43125 -36200 Miscellaneous Revenues 8,010.00 0.00 0.00 0.00 0% $ 8,010.00 $ - $ - $ - Recycling R 100 - 43232 -33610 County Recycling Grant 14,551.00 14,500.00 14,820.00 - 320.00 2% R 100 - 43232 -34400 Recycling 70,964.70 65,000.00 60,090.93 4,909.07 -8% $ 85,515.70 $ 79,500.00 $ 74,910.93 -6% Parks R 100 - 45200 -33422 Other State Grants and Aids 35,822.80 35,823.00 36,221.20 - 398.20 1 % R 100 - 45200 -34101 Facility Rental 1,310.50 1,000.00 1,995.68 - 995.68 -13% R 100 - 45200 -36200 Miscellaneous Revenues 44.99 0.00 62.91 -62.91 1 1 100% R 100 - 45200 -36230 Donations 1 1,320.00 0.00 3,914.00 - 3,914.00 100% $ 38,498.29 $ 36,823.00 $ 42,193.79 Transfers to /from Other Funds R 100 - 49360 -39200 Transfer from Other Fund Total Revenue $ 3,172,834.06 $ 3,152,256.00 $ 3,140,192.33 $ 12,063.67 -2% 2 of 8 CITY OF CORCORAN 2012 PERFORMANCE REPORT - GENERAL FUND YEAR ENDING 12/31/2012 UNAUDITED 8d. Account Description 2011 Actual 2012 Budget 2012 Actual Amount Remaining Budget Difference Comments EXPENSE City Charter E 100 - 41000 -210 Operating Supplies (GENERAL) 235.07 0.00 0.00 0.00 0% E 100 - 41000 -300 Professional Srvs (GENERAL) 0.00 0.00 0.00 0.00 0% $ 235.07 $ - $ - $ - City Council E 100 - 41100 -100 Wages and Salaries (GENERAL) 6,600.00 6,600.00 6,600.00 0.00 0% E 100 -41100 -122 FICA 409.20 409.00 409.20 -0.20 0% E 100 - 41100 -126 Medicare 95.70 96.00 95.70 0.30 0% E 100 - 41100 -210 Operating Supplies (GENERAL) 285.00 100.00 0.00 100.00 0% E 100 - 41100 -364 Worker's Comp Insurance 0.00 55.00 32.12 22.88 0% $ 7,389.90 $ 7,260.00 $ 7,137.02 Newspaper /Newsletter/Website E 100 - 41130 -351 Newsletter Expenses 3,714.49 4,000.00 4,061.81 -61.81 2% E 100 - 41130 -354 Web Site 700.00 700.00 700.00 0.00 0% 4,414.49 $ 4,700.00 $ 4,761.81 City Administrator E 100 - 41300 -100 Wages and Salaries (GENERAL) 87,623.12 92,141.00 90,375.25 1 1,765.75 0% E 100 - 41300 -121 PERA 6,352.58 6,680.00 6,552.22 127.78 0% E 100 - 41300 -122 FICA 4,856.98 5,713.00 5,120.84 592.16 0% E 100 - 41300 -126 Medicare 1,128.81 1,336.00 1,197.59 138.41 0% E 100 - 41300 -130 Employer Paid FSA 0.00 350.00 0.00 350.00 0% E 100 - 41300 -131 Employer Paid Health 9,123.32 12,671.00 9,914.01 2,756.99 0% E 100 - 41300 -132 Medical Cafeteria Plan 0.00 55.40 -55.40 0% E 100 - 41300 -133 Employer Paid H S A 4,099.98 0.00 4,099.99 - 4,099.99 0% E 100 - 41300 -140 Unemployment Comp (GENERAL) 0.00 0.00 0.00 0.00 0% E 100 - 41300 -208 Training and Instruction 2,668.47 2,500.00 1,812.60 687.40 -27% E 100 - 41300 -210 Operating Supplies (GENERAL) 836.94 700.00 491.67 208.33 -32% E 100 - 41300 -364 Worker's Comp Insurance 709.00 840.00 - 683.48 1,523.48 -181% E 100 - 41300 -433 Dues and Memberships 1 871.16 900.00 1 847.76 52.24 -6% $ 118,270.36 $ 123,831.00 $ 119,783.85 Clerk/Admin E 100 - 41400 -100 Wages and Salaries (GENERAL) 123,369.30 130,521.00 131,732.63 - 1,211.63 0% E 100 - 41400 -110 Overtime 193.65 2,000.00 1,827.35 172.65 0% E 100 - 41400 -121 PERA 8,912.21 9,608.00 9,666.90 -58.90 0% E 100 - 41400 -122 FICA 1 8,311.63 8,217.00 8,654.71 - 437.71 1 0% E 100 -41400 -126 Medicare 1,932.78 1,922.00 2,024.15 - 102.15 0% E 100 - 41400 -130 Employer Paid FSA 700.00 1,050.00 1 700.00 350.00 0% E 100 -41400 -131 Employer Paid Health 6,753.91 31,678.00 7,636.59 24,041.41 0% E 100 - 41400 -132 Medical Cafeteria Plan 14,630.26 0.00 12,018.03 - 12,018.03 0% E 100 - 41400 -133 Employer Paid H S A 2,225.12 0.00 3,007.84 - 3,007.84 0% E 100 - 41400 -140 Unemployment Comp (GENERAL) 0.00 0.00 0.00 0.00 0% E 100 - 41400 -208 Training and Instruction 1,044.00 2,000.00 829.95 1,170.05 1 -59% 3 of 8 CITY OF CORCORAN 2012 PERFORMANCE REPORT - GENERAL FUND YEAR ENDING 12/31/2012 UNAUDITED 8d. Account Description 2011 Actual 2012 Budget 2012 Actual Amount Remaining Budget Difference Comments E 100 - 41400 -210 Operating Supplies (GENERAL) 395.92 500.00 403.71 96.29 -19% E 100 - 41400 -300 Professional Srvs (GENERAL) 0.00 0.00 0.00 0.00 0% E 100 - 41400 -364 Worker's Comp Insurance 1,292.77 1,411.00 1,215.78 195.22 -14% E 100 - 41400 -433 Dues and Memberships 60.00 150.00 35.00 115.00 -77% $ 169,821.55 $ 189,057.00 $ 179,752.64 Elections E 100 - 41410 -210 Operating Supplies (GENERAL) $ 1,121.55 $ 9,000.00 $ 6,039.53 $ 2,960.47 -33% 4 of 8 CITY OF CORCORAN 2012 PERFORMANCE REPORT - GENERAL FUND YEAR ENDING 12/31/2012 UNAUDITED 8d. Account Description 2011 Actual 2012 Budget 2012 Actual Amount Remaining Budget Difference Comments Auditor/Treasurer E 100 - 41540 -300 Professional Srvs (GENERAL) $ 22,570.00 $ 23,000.00 $ 22,160.50 $ 839.50 0% Assessor E 100 - 41550 -210 Operating Supplies (GENERAL) 760.08 500.00 929.29 (429.29) 80% E 100 - 41550 -300 Professional Srvs (GENERAL) 1 49,284.00 1 49,284.00 1 49,284.00 1 - 0% $ 50,044.08 $ 49,784.00 $ 50,213.29 Attorney * E 100 - 41600 -300 Professional Srvs (GENERAL) 32,971.67 35,000.00 22,352.59 12,647.41 -34% $ 32,971.67 $ 35,000.00 $ 22,352.59 Other General Government E 100 - 41900 -210 Operating Supplies (GENERAL) 0.00 31.25 (31.25) E 100 - 41900 -300 Professional Srvs (GENERAL) 0.00 12,200.50 (12,200.50) 100% Northland Securities E 100 - 41900 -360 Insurance (GENERAL) 42,717.00 1 45,000.00 18,806.00 26,194.00 1 -58% E 100 - 41900 -433 Dues and Memberships 22,206.95 24,000.00 1 24,454.47 454.47 2% $ 64,923.95 $ 69,000.00 $ 55,492.22 Planning & Zoning * E 100 - 41910 -300 Professional Srvs (GENERAL) 60,590.13 32,000.00 41,785.46 9,785.46 25% $ 60,590.13 $ 32,000.00 $ 41,785.46 Code Enforcement E 100 - 41920 -100 Wages and Salaries (GENERAL) 5,514.32 10,998.00 7,543.20 3,454.80 -34% E 100 - 41920 -121 PERA 399.74 797.00 502.91 294.09 -28% E 100 - 41920 -122 FICA 341.40 1 682.00 1 445.39 1 236.61 -30% E 100 -41920 -126 Medicare 79.82 159.00 104.19 54.81 -37% E 100 - 41920 -131 Employer Paid Health - 6,336.00 - 6,336.00 -100% E 100 - 41920 -210 Operating Supplies (GENERAL) 594.64 1,500.00 1,054.14 445.86 -33% E 100 - 41920 -300 Professional Srvs (GENERAL) - - 525.68 (525.68) 0% E 100 - 41920 -417 Uniforms - 100.00 100.00 - 0% $ 6,929.92 $ 20,572.00 $ 10,275.51 City Hall Operations E 100 - 41941 -200 Office Supplies (GENERAL) 2,562.89 3,000.00 1,978.10 1,021.90 -17% E 100 -41941 -201 Postage /Shipping 2,024.99 2,500.00 1,222.76 1,277.24 -20% E 100 - 41941 -207 Computer Supplies 5,072.96 3,000.00 2,423.59 576.41 -17% E 100 - 41941 -210 Operating Supplies (GENERAL) 14,208.27 9,500.00 12,496.89 (2,996.89) 32% E 100 - 41941 -300 Professional Srvs (GENERAL) 10,831.59 7,000.00 15,385.39 (8,385.39) 114% E 100 - 41941 -321 Telephone 3,064.88 3,000.00 2,182.22 817.78 -20% E 100 - 41941 -352 General Notices and Pub Info 1,632.31 2,000.00 2,234.88 (234.88) 50% E 100 - 41941 -364 Worker's Comp Insurance 0.83 438.00 - 438.00 -100% E 100 - 41941 -380 Utility & Services (GENERAL) 14,903.84 14,500.00 12,832.53 1,667.47 0% E 100 -41941 -400 Repairs & Maint Cont (GENERAL) 7,059.71 4,000.00 9,816.79 (5,816.79) 125% Septic service E 100 - 41941 -430 Misc. Banking Charge 0.00 1 1 64.00 1 0.00 $ 61,362.27 $ 48,938.00 $ 60,637.15 IT (Info Technology) E 100 - 41951 -207 Computer Supplies 6,295.34 10,000.00 7,580.31 2,419.69 0% $ 6,295.34 $ 10,000.00 $ 7,580.31 $ 2,419.69 5 of 8 CITY OF CORCORAN 2012 PERFORMANCE REPORT - GENERAL FUND YEAR ENDING 12/31/2012 UNAUDITED 8d. Account Description 2011 Actual 2012 Budget 2012 Actual Amount Remaining Budget Difference Comments Police E 100 - 42100 -100 Wages and Salaries (GENERAL) 479,168.33 505,745.00 495,814.90 9,930.10 0% E 100 - 42100 -110 Overtime 11,251.09 9,500.00 1,506.73 7,993.27 -84% E 100 - 42100 -111 Overtime Events /Grants 13,761.70 15,000.00 10,756.14 4,243.86 -43% See 100 - 42101 -111 E 100 - 42100 -121 PERA 72,688.58 76,043.00 73,187.31 2,855.69 0% E 100 - 42100 -126 Medicare 7,506.73 7,657.00 7,447.38 209.62 0% E 100 - 42100 -130 Employer Paid FSA 414.00 2,450.00 608.66 1,841.34 0% E 100 - 42100 -131 Employer Paid Health 36,189.10 39,283.00 34,814.94 4,468.06 0% E 100 - 42100 -132 Medical Cafeteria Plan 35,026.54 31,266.00 30,739.96 526.04 0% E 100 - 42100 -133 Employer Paid H S A 11,125.60 9,621.00 11,486.15 (1,865.15) 0% E 100 - 42100 -200 Office Supplies (GENERAL) 4,299.97 5,000.00 5,236.99 (236.99) 0% E 100 - 42100 -201 Postage /Shipping 647.45 500.00 104.37 395.63 -50% E 100 - 42100 -208 Training and Instruction 12,125.45 10,000.00 11,010.16 (1,010.16) 20% E 100 - 42100 -209 Police Reserves 3,706.56 3,500.00 3,119.83 380.17 0% E 100 - 42100 -210 Operating Supplies (GENERAL) 2,949.75 3,500.00 4,185.49 (685.49) 14% E 100 - 42100 -212 Motor Fuels 40,336.26 34,000.00 39,114.51 (5,114.51) 18% E 100 - 42100 -220 Repair /Maint Supply (GENERAL) 8,961.58 8,000.00 13,397.30 (5,397.30) 56% E 100 - 42100 -223 Building Repair Supplies 2,404.76 3,000.00 3,710.63 (710.63) 0% E 100 - 42100 -300 Professional Srvs (GENERAL) 586.25 500.00 40.00 460.00 0% E 100 - 42100 -301 Prisoner 4,965.84 8,000.00 5,370.25 2,629.75 -25% E 100 - 42100 -304 Legal Fees 34,238.36 30,000.00 25,868.76 4,131.24 -10% E 100 - 42100 -321 Telephone 5,917.07 7,200.00 7,244.77 (44.77) 0% E 100 - 42100 -323 Radio Units 12,160.98 15,300.00 11,420.06 3,879.94 0% E 100 - 42100 -364 Worker's Comp Insurance 25,287.19 29,065.00 7,455.55 21,609.45 -74% Policy adjusted to payment by calendar year E 100 - 42100 -380 Utility & Services (GENERAL) 3,999.30 4,000.00 2,140.77 1,859.23 -38% E 100 - 42100 -417 Uniforms 6,708.76 8,460.00 7,768.09 691.91 0% E 100 - 42100 -433 Dues and Memberships 790.00 1 1,000.00 870.00 1 130.00 1 0% $ 837,217.20 $ 867,590.00 $ 814,419.70 Part Time Officers E 100 - 42101 -100 Wages and Salaries (GENERAL) 65,046.50 76,325.00 72,393.74 3,931.26 0% E 100 - 42101 -111 Overtime Events /Grants 3,548.00 - 6,353.46 (6,353.46) 100% Contractural events /Safe and Sober events. Budgeted 42100 -11 E 100 - 42101 -121 PERA 1,955.24 2,500.00 1,844.97 655.03 0% E 100 - 42101 -122 FICA 1,957.81 4,732.00 4,088.01 643.99 0% E 100 - 42101 -126 Medicare 981.50 1,107.00 1,141.84 (34.84) 0% E 100 - 42101 -140 Unemployment Comp (GENERAL) 5,141.46 1 - - I - 0% $ 78,630.51 $ 84,664.00 $ 85,822.02 Police Admin E 100 - 42102 -100 Wages and Salaries (GENERAL) 37,638.83 40,248.00 38,760.84 1,487.16 0% E 100 - 42102 -110 Overtime 0.00 500.00 14.51 485.49 0% E 100 - 42102 -121 PERA 2,738.44 2,954.00 2,810.02 143.98 0% E 100 - 42102 -122 FICA 2,616.94 2,526.00 1 2,607.68 1 (81.68) 0% E 100 - 42102 -126 Medicare 608.28 591.00 609.89 (18.89) 0% E 100 - 42102 -130 Employer Paid FSA 350.00 350.00 350.00 - 0% E 100 - 42102 -131 Employer Paid Health 1,323.58 1,300.00 1,391.55 (91.55) 0% E 100 - 42102 -132 Medical Cafeteria Plan 5,125.121 1 5,200.00 4,158.70 1,041.30 0% 6 of 8 CITY OF CORCORAN 2012 PERFORMANCE REPORT - GENERAL FUND YEAR ENDING 12/31/2012 UNAUDITED 8d. Account Description 2011 Actual 2012 Budget 2012 Actual Amount Remaining Budget Difference Comments $ 50,401.19 $ 53,669.00 $ 50,703.19 Fire E 100 - 42200 -300 Professional Srvs (GENERAL) 247,089.56 250,000.00 242,082.72 7,917.28 0% E 100 - 42200 -550 Motor Vehicles 11,257.57 - - - 0% E 100 - 42200 -580 Other Equipment 1 676.00 1 1,000.00 - 1 1,000.00 0% $ 259,023.13 $ 251,000.00 $ 242,082.72 Building Inspection E 100 - 42400 -300 Professional Srvs (GENERAL) 48,461.47 30,000.00 9,421.02 20,578.98 -60% E 100 - 42400 -437 Surcharges 2,995.40 2,500.00 1,726.95 773.05 0% $ 51,456.87 $ 32, 500.00 $ 11,147.97 Public Works E 100 - 43100 -100 Wages and Salaries (GENERAL) 285,063.83 280,363.00 264,245.75 16,117.25 0% E 100 - 43100 -110 Overtime 19,345.16 19,000.00 16,746.12 2,253.88 0% E 100 - 43100 -121 PERA 20,925.65 21,704.00 20,367.56 1,336.44 1 0% E 100 - 43100 -122 FICA 16,238.99 18,561.00 16,313.41 2,247.59 0% E 100 - 43100 -126 Medicare 3,772.10 4,341.00 3,815.20 525.80 0% E 100 - 43100 -130 Employer Paid FSA 984.00 1,750.00 700.00 1,050.00 0% E 100 - 43100 -131 Employer Paid Health 38,729.45 63,355.00 42,763.31 20,591.69 0% E 100 - 43100 -132 Medical Cafeteria Plan 6,407.96 - 8,177.36 (8,177.36) 0% E 100 - 43100 -133 Employer Paid H S A 11,723.76 - 10,281.32 (10,281.32) 0% E 100 - 43100 -140 Unemployment Comp (GENERAL) 0.00 - - - 0% E 100 - 43100 -208 Training and Instruction 1,862.85 2,500.00 3,739.00 (1,239.00) 60% Unbudgeted Supervisor training E 100 - 43100 -210 Operating Supplies (GENERAL) 15,583.09 20,000.00 21,167.34 (1,167.34) 0% E 100 - 43100 -212 Motor Fuels 39,943.23 32,000.00 37,194.51 (5,194.51) 0% E 100 - 43100 -220 Repair /Maint Supply (GENERAL) 86,507.36 20,000.00 1 22,146.83 (2,146.83) 0% E 100 - 43100 -222 Seal Coating 50,087.50 1 50,000.00 40,285.50 9,714.50 -19% E 100 - 43100 -223 Building Repair Supplies 7,751.79 6,500.00 332.23 1 6,167.77 -69% E 100 - 43100 -225 Landscape /Ditch Materials 11,922.98 10,000.00 9,178.62 821.38 -37% E 100 - 43100 -226 Sign Repair Materials 5,502.06 6,000.00 4,149.14 1,850.86 -91% E 100 - 43100 -227 Crack Filling 15,337.65 16,000.00 12,564.17 3,435.83 -21% E 100 - 43100 -228 Dust Control 98,033.30 90,000.00 94,270.55 (4,270.55) 5% E 100 - 43100 -229 Culverts 10,120.41 7,000.00 11,132.49 (4,132.49) 59% E 100 - 43100 -232 Gravel 95,049.10 130,000.00 117,765.32 12,234.68 -9% Cut back to offset extra asphalt costs E 100 - 43100 -233 Asphalt Maint/Patching 123,718.78 130,000.00 143,633.95 (13,633.95) 8% Unexpected repairs E 100 - 43100 -300 Professional Srvs (GENERAL) 2,100.00 2,100.00 2,100.00 - 0% E 100 - 43100 -321 Telephone 4,386.46 3,600.00 5,005.41 (1,405.41) 39% E 100 - 43100 -364 Worker's Comp Insurance 13,419.49 15,076.00 20,996.21 (5,920.21) 39% E 100 - 43100 -380 Utility & Services (GENERAL) 8,884.06 9,000.00 7,726.11 1,273.89 0% E 100 - 43100 -381 Street/Signal Lights 2,624.34 3,000.00 2,142.23 857.77 0% E 100 - 43100 -417 Uniforms 6,920.17 7,000.00 5,873.64 1,126.36 0% $ 1,002,945.52 $ 968,850.00 $ 944,813.28 0% Ice & Snow Removal E 100 - 43125 -210 Operating Supplies (GENERAL) $ 21,411.77 $ 29,000.00 $ 22,443.01 $ 6,556.99 0.00% En ineeerin 7 of 8 CITY OF CORCORAN 2012 PERFORMANCE REPORT - GENERAL FUND YEAR ENDING 12/31/2012 UNAUDITED 8d. Account Description 2011 Actual 2012 Budget 2012 Actual Amount Remaining Budget Difference Comments E 100 - 43170 -300 Professional Srvs (GENERAL) 68,387.87 36,000.00 53,364.97 17,364.97 11% $ 68,387.87 $ 36,000.00 $ 53,364.97 Recycling E 100 - 43232 -210 Operating Supplies (GENERAL) 1,839.40 1,000.00 750.00 250.00 0% E 100 - 43232 -300 Professional Srvs (GENERAL) 1 71,176.18 1 63,345.00 64,742.64 1,397.64 -6% $ 73,015.58 $ 64,345.00 $ 65,492.64 Parks E 100 - 45200 -100 Wages and Salaries (GENERAL) 14,480.39 28,128.00 16,815.88 11,312.12 0% E 100 - 45200 -110 Overtime 0.00 - 477.00 (477.00) 100% E 100 - 45200 -122 FICA 843.12 1,744.00 1,072.15 671.85 0% E 100 - 45200 -126 Medicare 196.65 408.00 250.74 157.26 0% E 100 - 45200 -210 Operating Supplies (GENERAL) 6,491.95 8,000.00 8,561.82 (561.82) 0% E 100 - 45200 -220 Repair /Maint Supply (GENERAL) 329.73 1,100.00 751.97 348.03 0% E 100 - 45200 -221 Maintenance Projects 10,351.90 15,000.00 13,592.11 1,407.89 0% E 100 - 45200 -321 Telephone 749.79 700.00 613.84 86.16 0% E 100 - 45200 -364 Worker's Comp Insurance 3,798.84 4,493.00 (1,815.18) 6,308.18 -140% E 100 - 45200 -380 Utility & Services (GENERAL) 4,436.87 7,100.00 4,571.52 2,528.48 0% E 100 - 45200 -530 Improvements Other Than Bldgs 1 35,822.80 1 35,823.00 36,221.20 398.20 0% $ 77,502.04 $ 102,496.00 $ 81,113.05 $ 21,382.95 Transfers to /from Other Funds E 100 - 49360 -720 Operating Transfers - - - - Total Revenue $ 3,172,834.06 $ 3,152,256.00 $ 3,140,192.63 $ (12,063.37) Total Expense $ 3,126,931.96 $ 3,112,256.00 $ 2,959,374.43 $ (152,881.57) Total Revenue - Total Expense $ 45,902.10 $ 40,000.00 $ 180,818.20 $ 140,818.20 8 of 8 Wenck TO: Dan Donahue, City Administrator FROM: Kent Torve, P.E. DATE: February 20, 2013 SUBJECT: Public Works Roundtable Wenck Associates, Inc. 1800 Pioneer Creek Ctr. P.O. Box 249 Maple Plain, MN 55359 -0249 (763) 479 -4200 Fax (763) 479 -4242 E -mail: wenckmp @wenck.com Public Works Roundtable Wenck invited area Public Works directors to an informal roundtable on Friday, February 22nd to discuss technical items of interest and 2013 projects. The respective cities and topics discussed are listed below, and the event was provided at no cost to the cities. Medina • Discuss a water system interconnect on Hackamore Road to coordinate upcoming Toll Brothers and Lennar developments • Transportation study and traffic count update from County data and Wenck • Potential of paving the remainder of Arrowhead Drive under shared PW effort o There are only 2 or 3 assessable lots in each City • Discuss the Hackamore and CR 116 intersection as impacted by further development • Discuss a path along Hackamore to get residents to the traffic signals at CR 116 or CR 101 Loretto • Receive an update on the MCES sewer study for regional service in the area • Recap the winter construction of the stormwater pond at the ball fields • Discuss schedule for PW directors ranking Loretto street conditions in 2013 • Discuss 2013 sewer pipe flow monitoring with new ISCO machine • Discuss available emergency response training for LFD Cnrcoran • Update group on Public Works building construction • Give a Lennar development update (and Medina water connection under Hackamore) • Discuss Arrowhead paving w/ Medina • Update group on resident survey for potential paving of Trailhaven in 2015 • Discuss water system equipment needs (remote readers, flushing, training, licenses, billing system, etc.) Rockford • Discuss seal coating verses slurry sealing of streets • Discuss methods of water main replacement (lining verses open cut). Agenda Item • i L A N D F 0 R M From Site to Finish 105 South Fifth Avenue Suite 513 Minneapolis, MN 55401 TO: Corcoran City Council FROM: Kendra Lindahl, Landform DATE: February 20, 2013 for the February 28, 2013 City Council Meeting i • • Tel: 612 - 252 -9070 Fax: 612 - 252 -9077 www.landform.net RE: Consider a City- Initiated amendment to Zoning Ordinance Section 1070.020 regarding Conditional Use Permit Amendments (City file 12 -017) Application Request Consider this City- initiated amendment to Section 1070.020 of the Zoning Ordinance to allow a simplified process for approval of an amendment to an existing conditional use permit. 2. Planning Commission Meeting The Planning Commission held a public hearing at their February 7, 2013 meeting. There was no one present to speak on the public hearing. The Commission voted unanimously to recommend approval of the zoning ordinance amendment. 3. Background The City Council directed staff to amend the zoning ordinance in response to a code enforcement issue. Since 2011, the city code enforcement officer has been working with a landowner, Linda Kohnen, to resolve a code violation at her property at 23240 County Road 30. The landowner is in violation of an existing conditional use permit and in violation of the City Zoning Ordinance. The landowner is leasing an accessory building on this residential property to a commercial business, Kothrade Sewer & Water for commercial storage. Commercial equipment is stored in this residential accessory building and employees of Kothrade Sewer and Water drive to the site each morning to pick up equipment for the day's work. It is staff's understanding that employee vehicles are then parked in the accessory building. This is in violation of the existing conditional use permit because the conditional use permit specifically states that the building was only for use by the homeowner and 6 specific pieces of his equipment. In 1996, the City issued a conditional use permit to operate a home occupation on this property for Steve Kohnen's truck operation (the city has since adopted a different process to address home occupations). The CUP specifically limits the use of the property to that home occupation in finding #3, which states: "That the applicants, their heirs and assigns, acknowledge and agree that the use of the accessory structure, within an R -1 Rural Residential District, is limited to residential and /or agricultural storage of equipment and restricts the use of said building from Landf— ", SensiblyGrcen M and Site to Finish- are service marks of Landform Engineering Company. • • • • commercial storage with the exception of his business equipment which consists of a truck, low -boy, dozer, bobcat, traxcavator, backhoe." This is in violation of the existing zoning ordinance because the use of the building as commercial storage for a contractor is not allowed in this (TCR- Transitional Rural Commercial) zoning district. Staff recommended several options to the landowner to allow her to continue to lease out this space (rezone the whole property to CR which allows contractor yards as a CUP, rezone only the part of the property where the commercial operation is taking place and ask for a CUP, or cease operation of the commercial use in the residential space). The landowner asked for an amendment to the existing conditional use permit. Staff agreed that this was a viable option. At the October 11, 2012 City Council meeting, staff recommended that the City Council consider amending Resolution 1996 -39. After reviewing the issue with the City Attorney, the City Planner and City Administrator, staff recommended the amendment by undertaking the following steps, which would preserve the spirit and intent of the CUP and the Zoning Ordinance and would allow the City to continue to consistently administer the City Code. Staff recommended that the City Council: a. Order staff to hold a public hearing to amend the Resolution and CUP. The Planning Commission held a public hearing and the City Council will act on the amendment. b. Consider a change to the council adopted fee schedule. (The Council included this new conditional use permit amendment fee in the 2013 fee schedule) After discussion, the City Council felt that a better alternative would be to make a larger change that would allow a simplified process for all landowners to benefit from a new conditional use amendment process. Therefore, staff has drafted this proposed ordinance amendment. If approved, the Council could define this as a minor conditional use permit amendment and the landowner could apply for the Conditional Use Permit amendment through this simplified process. 4. Analysis of Request A. Level of City Discretion in Decision - Making The City has a relatively high level of discretion in approving or denying an ordinance amendment. The proposed zoning amendment must be consistent with the City's Comprehensive Plan. The Zoning Ordinance is one of the enforcement tools used to implement the goals and standards set in the Comprehensive Plan. B. Consistency with Ordinance Standards It is our understanding that the intent of the Council is to allow the ability to allow minor amendments to Conditional Use Permits in circumstances where the impact of these changes on surrounding landowners will be minimal. Staff recommends the following changes to Section 1070.020 by deleting the stricken material and adding the underlined material as follows: Zoning Ordinance Amendment for CUPs February 28, 2013 i • Subd.6. Amendments. A. Holders of a conditional use permit may propose amendments to the permit at any time, following the procedures for a new permit as set forth in this Section. B. No SigRifiGant changes in the circumstances or scope of the permitted use shall be undertaken without approval of those changes by the City. T"°Rg Ganges inGl de but are not limited 4n• arrgc�-rrr �vcrcurc- rrvrnrrrrrcaz� C. Significant Changes. Following the procedures for hearing and review set forth in this Section the Planning Commission may recommend and the City Council may approve significant changes and modifications to conditional use permits, including the application of additional or revised conditions. The Zoning Administrator shall determine what constitutes significant change. Significant changes include, but are not limited to: 1. Hours of oaeration. 2. Number of employees. 3. Expansion of structures and /or premises. 4. Operational modifications resultina in increased external activities and traffic. a-. D. Minor Changes. Minor changes to the conditional use permit, which do not include significant changes, shall require City Council action only, 5. Next Steps If the ordinance amendment is approved, the new process would be available for landowners immediately. Ms. Kohnen could immediately submit her application for conditional use permit amendment for Council review on March 28`" to resolve this on -going code violation. Zoning Ordinance Amendment for CUPs February 28, 2013 • • • 6. Recommendation Move to adopt the following as recommended by the Planning Commission: a. Ordinance approving ordinance amendment b. Resolution approving findings of fact for ordinance amendment c. Ordinance approving summary publication Approval of the ordinance and resolution requires a 3/5 vote of the City Council. Approval of the summary ordinance requires a 4/5 vote of the City Council. Attachments a. Ordinance 2013 -275 approving ordinance amendment b. Resolution 2013 -05 approving findings of fact for ordinance amendment c. Ordinance 2013 -276 approving summary publication of ordinance amendment Zoning Ordinance Amendment for CUPs February 28, 2013 City of Corcoran County of Hennepin State of Minnesota ORDINANCE NO. 2013 -275 Motion By: Seconded By: February 28, 2013 AN ORDINANCE AMENDING THE TEXT OF CHAPTER 10 OF THE CORCORAN CITY CODE, ENTITLED CORCORAN ZONING ORDINANCE THE CITY COUNCIL OF CORCORAN ORDAINS: SECTION 1. Amendments. The text of Section 1070.020 of Chapter 10 (Zoning Ordinance) of the Corcoran City Code is hereby amended by deleting the Strom material and adding the underlined material as follows: Subd.6. Amendments. A. Holders of a conditional use permit may propose amendments to the permit at any time, following the procedures for a new permit as set forth in this Section. B. No si^.9,,;fioa t changes in the circumstances or scope of the permitted use shall be undertaken without approval of those changes by the City. Tae Sign iGant nhanges innli de but are net limited tom. C. Significant Changes. Following the procedures for hearing and review set forth in this Section the Planning Commission may recommend and the City Council may approve significant changes and modifications to conditional use permits, including the application of additional or revised conditions. The Zoning Administrator shall determine what constitutes significant change. Sianificant chanaes include. but are not limited to: 1. Hours of operation. 2. Number of employees. 3. Expansion of structures and /or premises. 4. Operational modifications resulting in increased external activities and traffic. Page 1 of 2 City of Corcoran February 28, 2013 County of Hennepin State of Minnesota ORDINANCE NO. 2013 -275 D. Minor Changes. Minor changes to the conditional use permit, which do not include significant changes, shall require City Council action only, SECTION 2. Effective Date. This ordinance shall be in full force and effect upon its passage. VOTING AYE ❑ Guenthner, Ken ❑ Asleson, Rich ❑ Cossette, Tom ❑ Lynch, Diane ❑ Thomas, Ron VOTING NAY ❑ Guenthner, Ken ❑ Asleson, Rich ❑ Cossette, Tom ❑ Lynch, Diane ❑ Thomas, Ron Whereupon, said Ordinance is hereby declared adopted on this 28th day of February 2013. ATTEST: Jeanie Heinecke — Clerk Kenneth Guenthner - Mayor Page 2 of 2 City Seal City of Corcoran County of Hennepin State of Minnesota RESOLUTION NO. 2013 -05 Motion By: Seconded By: February 28, 2013 A RESOLUTION APPROVING FINDINGS OF FACT FOR AN ORDINANCE AMENDING THE TEXT OF CHAPTER 10 OF THE CORCORAN CITY CODE, ENTITLED CORCORAN ZONING ORDINANCE WHEREAS, the City of Corcoran initiated an amendment to update the Zoning Ordinance to address minor changes to Conditional Use Permits; and WHEREAS, the amendment would be consistent with the 2030 Comprehensive Plan; and WHEREAS, the Planning Commission has reviewed the proposed text amendments at a duly called public hearing and recommends approval; NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORCORAN, MINNESOTA, that it should and hereby does approve the Zoning Ordinance text amendment, based upon the finding that the proposed amendments would be consistent with State law and the City's Comprehensive Plan, and compatible with other provisions of the City's Zoning Ordinance. VOTING AYE ❑ Guenthner, Ken ❑ Asleson, Rich ❑ Cossette, Tom ❑ Lynch, Diane ❑ Thomas, Ron VOTING NAY ❑ Guenthner, Ken ❑ Asleson, Rich ❑ Cossette, Tom ❑ Lynch, Diane ❑ Thomas, Ron Whereupon, said Resolution is hereby declared adopted on this 28th day of February 2013. ATTEST: Jeanie Heinecke — Clerk Kenneth Guenthner - Mayor Page 1 of 1 City Seal City of Corcoran County of Hennepin State of Minnesota ORDINANCE NO. 2013 -276 Motion By: Seconded By: CITY OF CORCORAN SUMMARY OF ORDINANCE NO. 2013 -275 February 28, 2013 AN ORDINANCE AMENDING THE TEXT OF CHAPTER 10 (ZONING ORDINANCE) OF THE CORCORAN CITY CODE Section 1070.020 of Chapter 10 (Zoning Ordinance) of the Corcoran City Code is hereby amended to allow a simplified process for approval of an amendment to an existing conditional use permit. A printed copy of the entire amended Section 1070.020 of Chapter 10 is available for inspection by any person at City Hall during the City Clerk's regular office hours. VOTING AYE ❑ Guenthner, Ken ❑ Asleson, Rich ❑ Cossette, Tom ❑ Lynch, Diane ❑ Thomas, Ron VOTING NAY ❑ Guenthner, Ken ❑ Asleson, Rich ❑ Cossette, Tom ❑ Lynch, Diane ❑ Thomas, Ron Whereupon, said Ordinance is hereby declared adopted on this 28th day of February 2013. ATTEST: Jeanie Heinecke — Clerk Kenneth Guenthner - Mayor Page 1 of 1 City Seal Wenck Associates, Inc. 1800 Pioneer Creek Ctr. 1 1 C I \ P.O. Box 249 We Maple Plain, MN 55359 -0249 (763) 479 -4200 Fax (763) 479 -4242 E -mail: wenckmp @wenck.com TO: Dan Donahue, City Administrator FROM: Kent Torve, P.E. Vince Vander Top, P.E. Kendra Lindahl, City Planner DATE: February 21St, 2013 SUBJECT: TIF Project Information 1.0 Background The Council reviewed potential TIF projects at the February 14th meeting and requested additional information for potential projects for the estimated $1.8M remaining. Additional information provided below includes: • Description of tasks and costs for transportation planning • Planning effort of updating the Zoning Code Design Guidelines • Sewer data and figures to show areas served for two lift station locations. • Table of project costs and fund balance 2.0 Transportation Planning (Refined) Council directed staff to further develop a scope for transportation planning in the downtown area, focusing on the area north of downtown and the CR 10 /CR 116 intersection. The prior Engineer's memo had identified a process for "official mapping" which would receive formal approval of County and City. Currently this proposal is modified for a planning level effort, to identify the corridors and alignment, but not complete the official mapping process that involves formal approvals by the County. The directions at last week's council meeting was to focus on those roads consistent among different CR 10/ CR 50 scenarios and are shown in yellow cloud on Figure 1. The figure shows studying the following roadways and intersections: • Meister Road • Signalized intersections along CR 116 of Meister Rd, City Hall, and CR 10 • Alignment corrections and alignment east of CR 116 and CR 10 Scope of work The prior memo had documented the tasks involved, which are copied below: • Updating traffic projections • Establishing preliminary plan, ROW, and typical roadway cross sections • Turnback timeline for CR 10 o Some minor improvements on CR 10 maybe a condition of the tumback. • Establishing design criteria (design speed, adjusting curves, etc.) • Intersection and signal needs • Complete preliminary geometric design • Individual access management meetings • Environmental review for wetlands and stormwater • Pursue acquisition of the CR10 /CR50 "fork" properties which under all alignments would require purchase List of Tasks and Costs Task 1 Corridor Planning, ROW identification, Preliminary geometric and Intersection designs $35K Task 2 Environmental Review $15K Task 3 Public Meetings and Process $ l0K Task 4 Property acquisition $150K to $175K. 2.1 East / West Transportation Corridor (Text from Vince Vander Top, P.E.) This add -on scope of work focuses on the components common to the two different CR 10150 scenarios. This scope (shown in blue cloud on Figure 1) builds off the CR 10/ CR 116 alignment task above, and brings into discussion the ultimate alignment of CR 10. It is recognized that this is a more difficult planning project, however staff believes it would be prudent for the Council to consider the merit of using TIF to address east /west alignment also. Two primary options have been discussed (along existing CR 10 corridor or moving CR 10 to Larkin Road) during previous planning exercises and in the Comprehensive Plan: The determination of a preferred east /west corridor for County Road 10 may need to be determined prior to execution of the other common components including Meister Road improvements, improvement of intersections along Country Road 116, and ultimately the turn-back of County Road 10 through Corcoran. The following typical questions could be considered for evaluation: 1. What are the required typical sections based on projected volumes? How do they change through the corridor? 2. What are impacts to future pedestrian movements? Impacts to local downtown trips? 3. What are the impacts to local properties, downtown businesses and along Larkin Road? Can we minimize impacts by limiting the typical section? Will access control be viable? 4. Will the intersection of CR 10 and CR 116 be significantly different if it is a city street instead of a County Road intersection? 5. What are the environmental impacts of the different options? Adding clarity to these questions would be timely; in that, the planning actions would be well before development activity. The end product may not be an actual official map of County Road 10. Rather, the identification of a preferred alignment, typical sections, and right -of -way width would guide future planning and development. The four tasks are the same as listed previously in paragraph 2.0 and the cost for the east /west planning is estimated at $80K. 3.0 Design Guidelines Planning for roadways affects future development in the downtown area, and discussions with Kendra Lindahl identified a 2013 planning project that could be incorporated into the overall transportation planning effort. (Text from Kendra Lindahl, City Planner) The council has identified an update to the downtown design guidelines (which are part of Appendix A of the Zoning Ordinance) as a priority for 2013. Furthermore, the City Council has identified a need for an update to the Transportation Plan for this area. Our work plan includes preparation of a new downtown master plan and associated design guidelines in conjunction with the transportation planning efforts. Our work includes meetings with the City Engineer to prepare and refine concept plans, presentation of the revised concept plans to the City Council, preparation of a new master plan and design guidelines, a community open house and meetings with the Planning Commission and City Council. Our proposed work plan for this project is based on our previous discussions and our understanding of the goals for the downtown area. Task 1 Analysis of existing master plan and design guidelines Task 2 Preparation of conceptual master plan in coordination with conceptual transportation plan Task 3 Council review of concept master plan Task 4 Refinement of Master Plan and updates to design standards Task 5 Preparation of Master Plan and Ordinance update for public hearing process (community open house, planning commission and city council meeting) We estimate this scope of work at approximately $20,000, depending on the number of meetings and revisions required. 4.0 Lift Station Locations The prior council discussion centered on the location of the lift station to serve the downtown area, green space of Schutte and Schendel properties, and also potential park or Rockford School District improvements. Further discussion could involve the exposure of public or private needs, existing users (Downtown and Corcoran Trail loop) vs. undeveloped (Schulte and Schendel), etc. Cost was previously given as $500,000. Park Location: Advantages • City -owned property available for construction • Serves downtown area via public ROW • Serves 50% of the Comp Plan area • Serves Rockford school property • Schendel exposed via a second lift station Disadvantages Schendel Location: Advantages Disadvantages Two lift stations may exist if Schendel develops soon, or A "lost" cost of pumps and electrical would occur if gravity installed through the City Park and Schendel lift station also serves Park and downtown area. Downstream location serves about 20% more area than Park location Discharge could be routed to CR 116 rather than south to CR 10 Private property would need acquisition in 2013/2014 Initial planning of development needs to occur to locate the lift station 4.1 Downtown Sewer Exposure Both options could include installation of a length of pipe to "stub" to the intersection of Commerce Street and CR 10. This small forcemain would be temporarily capped, however would expose all businesses to sewer and allow for the removal of mounds and holding tanks. A business with either expansion plans or compliance issues could move forward with improvements. Estimated cost is $40,000 and the final route would need to be determined (Park area or CR 116 manhole). Table 1. List of 2013 Potential Projects for TIF Expenditure CADocuments and Settings \TorKC0063 \My Documents \Corcoran Offsite \Sewer and Water Project \Project List TIF 2013.xis Time Line TIF Balance Estimate $1,856,604 HWY 55 Infrastructure Planning Reimbursment $100,000 2013 Transportation Planning (Refined) $60,000 2013/2014 East/West Transportation Corridor $80,000 2013/2014/ 2015 Property Acquisition $175,000 2014 Design Guidelines (Update Appendix A of Zoning Code) $20,000 2013 Lift Station and Water to Park Area $500,000 2013/2014 Sewer Stub to Commerce St. and CR 10 $40,000 2013/2014 CADocuments and Settings \TorKC0063 \My Documents \Corcoran Offsite \Sewer and Water Project \Project List TIF 2013.xis CITY OF CORCORAN Downtown Alignment JUNE 2010 Figure 1 Attachment A Sewer Information from Comprehensive I�1 APPENDIX C - ULTIMATE SYSTEM DESIGN FLOWS (MGD) SE DISTRICT SE -A MG' SE -A Average Total 4.0 0.02 From Design SE -30 To Point Area Added Flow Average PFF 0.46 Point SE -28 SE -AI 0.12 0.24 3.8 Flow SE -28 SE -1 SE -AJ Added Flow 3.6 1.21 SE DISTRICT SE -A MG' SE -A 0.00 0.00 4.0 0.02 SE -30 SE- 29(LS) SE -AG, AH 0.12 0.12 4.0 0.46 SE- 29(LS) SE -28 SE -AI 0.12 0.24 3.8 0.91 SE -28 SE -1 SE -AJ 0.10 0.34 3.6 1.21 SE -1 SE -2 SE -U, W, AK 0.20 0.54 3.4 1.82 SE -2 SE -3 SE -V 0.01 0.55 3.4 1.86 SE -4 SE -3 SE -R 0.03 0.03 4.0 0.11 SE -3 SE -5 SE -P, Q 0.13 1 0.71 3.3 2.34 SE -5 SE -6 SE -G 0.00 0.71 3.3 2.34 SE -7 SE -6 SE -O, AM 0.16 0.16 3.9 0.64 SE -6 SE -8 0.00 0.87 3.2 2.79 SE -9 SE -10 SE -D, E 0.12 0.12 4.0 0.48 SE -10 SE -8 0.00 0.12 4.0 0.48 SE -8 SE -11 SE -F 0.01 1.01 3.1 3.12 SE -12 SE -11 SE -H, 1 0.24 0.24 3.8 0.90 SE -11 SE -13 0.00 1.25 3.0 3.74 SE -13 SE -14 (LS) SE -B 0.02 1.27 3.0 3.80 SE -32 SE -31 SE -AP, AO 0.17 0.17 3.9 0.68 SE -31 SE -14 (LS) SE -AQ, AR 0.14 0.32 3.6 1.14 SE -14 (LS) NE -4 SE -C,K, AF, AS, AT 0.31 1.89 2.9 5.48 SE -15 SE -16 0.00 0.00 4.0 0.00 SE -17 SE -18 SE -X, Y 0.23 0.23 3.8 1 0.88 SE -18 SE -16 SE -S 0.02 0.25 3.7 0.93 SE -16 SE -19 SE -J, L 0.31 0.56 3.4 1.91 SE -20 (LS) SE -19 SE -M, N 0.05 0.05 4.0 0.19 SE -19 SE -21 SE -T 0.14 0.74 3.3 2.46 SE -21 SE -22 0.00 0.74 3.3 2.46 SE -23 SE -24 SE -AA, AB, AV 0.16 0.16 3.9 0.64 SE -25 SE -24 SE -AD, AU 0.11 0.11 4.0 0.43 SE -24 SE -26 SE -AC 1 0.01 1 0.28 3.7 1.04 SE -27 SE -26 SE -AE 0.10 0.10 1 4.0 0.41 APPENDIX C - ULTIMATE SYSTEM DESIGN FLOWS (MGD) SE -26 SE -22 Average Total 3.6 1.38 From Design SE -22 To Point Area Added Flow Average PFF 3.68 Point Flow Added Flow SE -26 SE -22 0.00 1 0.38 3.6 1.38 SE -22 I ECI2 SE -Z 0.06 1.19 3.1 3.68 1 Intercommunity connection to Maple Grove 2 MCES Elm Creek Interceptor Minnesota House of Representatives House Research H,i,mo Ret�vcson`ahtp Ho-1, Rc_,.a h R,pu. /T.a s > Tax ncremPMF o sne _a The But -For Test What is the but for' test? What is the purpose of the but -for test? Which local government units required to-make the but-for find ng? When must the but for finding be made? What must the municipality find to satisfy the statute? What is required to find a net increase in market value for the site? What geographic area does the but -for finding relate to? What form re uq iremenis apply to the but -for finding? • Are ,ary,yistnct.. or rejects exempt from the buS -for ml --rig? Are failures to satisfy the but for test subipct to judicial enforcement? What criticisms have been made of the but -for test? What is the "but -for" test? The "but -for' testis actually a finding requirement. Before creating a TIF district or subdistrict, a local government must find that in its opinion the subsidized development would not have happened butforthe use of TIF (hence, the term "but -for" test). Rehm. ietop What is the purpose of the but -for test? The but -for test is generally thought to have two purposes: 1. To prevent excessive use of TIF —i.e., to prevent unnecessary use of TIF. If a development would have been done anyway, why should TIF be used to assist it? 2. To protect the interests of overlapping governmental units (typically the county, school district, and state). If authorities use TIF for developments that would be built anyway, TIF diverts tax revenue from the county, school, and state (through the aid formulas) to the development authority and city. Source: Office of Legislative Auditor, Tax Increment Financing p. 42 (1986). getum to top Which local government unit is required to make the but -for finding? The statute requires the municipality (usually the city in which the TIF district is located) to make the but -for finding. Minn.. Stat_§ 466.1.75, subd. 3. However, for hazardous substance subdistricts, the development authority (e.g., a housing and redevelopment authority or economic development authority) makes the finding Minn, _Stat § 469.175, subd. 7(b). ROurn to fop When must the but -for finding be made? The municipality must make the but -for finding before it approves the TIF plan. Minn Stat § 469 175, subd. 3. This is apparently a one -time requirement that applies to the first approval of the TIF plan. The law is somewhat unclear on this point. The law does not explicitly require additional but -for findings for amendments to the TIF plan, even if the amendments make substantial changes (e.g., adding a new area to a district or changing the purposes for which increment may be spent). peg ;7 to can What must the municipality find to satisfy the statute? There are two basic components to the required but -for finding: 1. The development would not happen solely through private investment in the "reasonably foreseeable future." 2. The induced development will yield a net increase in market value for the site compared to the likely development that would occur without TIF. The findings represent "the opinion" of the municipality. Retiml,!Q, toQ What is required to find a net increase in market value for the site? The statute requires the municipality to compare two values: 1. The increase in market value of "the site" that would be reasonably be expected to occur without using TIF 2. The increase in market value of the proposed TIF development, minus the present value of the TIF assistance. The municipality may not make the finding if, in its opinion, the value of #2 is less than or equal to #1. For example, assume the city is considering using $16 million of TIF to assist development of a parcel as a hotel. Before any development, the parcel has a market value of $20 million. The city determines that the block would develop as an office building within a few years without using TIF, increasing the total value to $110 million without using TIF. The city projects that the hotel development will have a total market value of $125 million. In this instance, the city cannot make the but -for finding, since the TIF development yields a smaller market value increase. The calculations are displayed in the table below. Rot,rp to lop, What geographic area does the but -for finding relate to? The 2003 Legislature clarified that the finding relates to parcels on which the development or redevelopment assisted with TIF will be located. Before this change, the statute was not clear on this issue. Cities took varying approaches to this issue, according to the Legislative Auditor's 1986 report, including the project area or smaller areas within the project area or the district that will be assisted with TIF. !`toum to tap What form requirements apply to the but -for finding? The municipality must make the finding in writing and must set out of "the reasons and supporting facts" for the finding. Minn. Sat § 469.17: r, subd. 3. These statements must explicitly include the dollar amount of the municipality's alternative market value estimates Minn Stat §469 175, subd. 3(d). Rol gr)tp lop Are any districts or projects exempt from the but -for finding? Yes, the market value finding requirement does not apply to qualified housing districts. These districts are designed to provide low - income housing. The public benefit of these districts is considered to be providing types of housing that otherwise would not be available. In many instances, these developments will not generate the highest market value for a site. Thus, the but -for test could not be satisfied. RPbtm tot"p Are failures to satisfy the but -for test subject to judicial enforcement? Violations of the but -for requirements can be divided into two categories: Failure to make a finding altogether. Violations of this type clearly would be subject to judicial or administrative enforcement. Making a finding that is false or contrary to fact. The statute is not clear as to whether judicial actions (or administrative enforcement) applies. Based on the text of the statute, two arguments can be made that there is no remedy for these violations: First, the finding is simply as to a matter of the municipality's "opinion." Even if an opinion is not factually based, one may still consider it to be a view genuinely held by the governing body of the municipality. (It may have been unaware of the facts or simply refused to believe them.) Second, the law provides that once approved, the determination of the authority "shall be conclusive of the findings therein and of the public need for the financing." This provision appears intended to Development w/o TIF Development w/ TIF Item #1 above Item #2 above 1. Base value of area $20,000,000 F $20,000,000 2. Value after development 170,000,000 125,000,000 3. TIF assistance (present value) 0 16.000,000 4. Net increase in value ( =2 — 1 — 3) $90,000,000 $89,000,000 Rot,rp to lop, What geographic area does the but -for finding relate to? The 2003 Legislature clarified that the finding relates to parcels on which the development or redevelopment assisted with TIF will be located. Before this change, the statute was not clear on this issue. Cities took varying approaches to this issue, according to the Legislative Auditor's 1986 report, including the project area or smaller areas within the project area or the district that will be assisted with TIF. !`toum to tap What form requirements apply to the but -for finding? The municipality must make the finding in writing and must set out of "the reasons and supporting facts" for the finding. Minn. Sat § 469.17: r, subd. 3. These statements must explicitly include the dollar amount of the municipality's alternative market value estimates Minn Stat §469 175, subd. 3(d). Rol gr)tp lop Are any districts or projects exempt from the but -for finding? Yes, the market value finding requirement does not apply to qualified housing districts. These districts are designed to provide low - income housing. The public benefit of these districts is considered to be providing types of housing that otherwise would not be available. In many instances, these developments will not generate the highest market value for a site. Thus, the but -for test could not be satisfied. RPbtm tot"p Are failures to satisfy the but -for test subject to judicial enforcement? Violations of the but -for requirements can be divided into two categories: Failure to make a finding altogether. Violations of this type clearly would be subject to judicial or administrative enforcement. Making a finding that is false or contrary to fact. The statute is not clear as to whether judicial actions (or administrative enforcement) applies. Based on the text of the statute, two arguments can be made that there is no remedy for these violations: First, the finding is simply as to a matter of the municipality's "opinion." Even if an opinion is not factually based, one may still consider it to be a view genuinely held by the governing body of the municipality. (It may have been unaware of the facts or simply refused to believe them.) Second, the law provides that once approved, the determination of the authority "shall be conclusive of the findings therein and of the public need for the financing." This provision appears intended to preclude a court or another administrative entity (State Auditor or Attorney General) from "second guessing" the basis for the finding. Thus, this provision buttresses the notion that the finding is simply a matter of good faith and discretion on the part of the municipality. The Court of Appeals in the Walser case, however, held that this provision did not preclude judicial review of the blight test findings. Walser Auto Sales, Inc. v, City of Richfield, 635 N.W.2d 391, 399 fn.4 (Minn. App. 2001). Similar consideration may apply to permit judicial review of the but -for findings. Moreover, the statute requires the municipality to document in writing the supporting facts for its finding. Why would this be required, if the municipality could not to be held legally accountable for a false finding? It is possible that the required documentation was simply a mechanism to guarantee some accountability to the electorate, rather than providing a basis for legal enforcement. On balance, it seems likely to be very difficult to obtain judicial or administrative relief for but -for findings that are counterfactual, except perhaps in very extreme circumstances. HiiW,n_to_On What criticisms have been made of the but -for test? The 1986 report of the Legislative Auditor made numerous criticisms of the but -for test. Some of these include: 1. The most basic criticism is that the test tends to be treated not just as a necessary condition to the use TIF, but also a sufficient condition. The auditor's report points out that the test does not indicate whether public benefits of a development justify the public costs. According to most public finance experts, passing a cost - benefit test should be a litmus test for any proposed use of public money. 2. The language of the test is vague and permits cities to interpret it in a number of ways. 3. The test does not require the city to consider the displacement effects of the use of TIF --- e.g., using TIF at one location for a retail or office development likely will affect development of other sites. 4. The test may permit cities to use TIF to fund public improvements, even though using TIF generally to fund public improvements (other than in connection with stimulating specific developments) is often considered questionable. Following the 1986 Report of the Legislature Auditor, the legislature made a number of changes to address some of these concerns. The most important of these was to add the requirement that the city find that the use of TIF will yield a net increase in market value of the site. Return to up No,ember2005 What is TIF? Tax increment financing (TIF) uses the increased property taxes that a new real estate development generates to finance costs of the development. In Minnesota, TIT is used for two basic purposes: • To induce or cause a development or redevelopment that otherwise would not occur —e.g., to convince a developer to build an office building, retail, industrial, or housing development that otherwise would not be constructed. To do so, the increased property taxes are used to pay for costs (e.g., land acquisition or site preparation) that the developer would normally pay. • To finance public infrastructure (streets, sewer, water, or parking facilities) that are related to the development. In some cases, the developer would be required to pay for this infrastructure through special assessments or other charges. In other cases, all taxpayers would pay through general city taxes. How does TIF When a new TIT district is created, the county auditor certifies (1) the current work? net tax capacity (i.e., property tax base) of the TIT district and (2) the local property tax rates. As the net tax capacity of the district increases, the property taxes (i.e., the "tax increment') paid by this increase in value is dedicated and paid to the development authority. The tax increment is limited to the tax derived from the certified tax rate. Increases in value that generate increment may be caused by construction of the development or by general inflation in property values. The authority uses the increment to pay qualifying costs (e.g., land acquisition, site preparation, and public infrastructure) that it has incurred for the TIF project. How is TIF used to There is a mismatch between when most TIT costs must be paid —at the pay "upfront" beginning of a development and when increments are received —after the development costs? development is built and begins paying higher property taxes. Three basic financing techniques are used to finance these upfront costs: • Bonds. The authority or municipality (city or county) may issue its bonds to pay these upfront costs and use increment to pay the bonds back. Often, extra bonds are issued to pay interest on the bonds ( "capitalizing" interest) until increments begin to be received. • Interfund loans. In some cases, the authority or city may advance money from its own funds (e.g., a development fund or sewer and water fund) and use the increments to reimburse the fund. • Pay -as- you -go financing. The developer may pay the costs with its own funds. The increments, then, are used to reimburse the developer for these costs. This type of developer financing is often called "pay -as- you -go" or "pay -go" financing. What governmental Minnesota authorizes development authorities to use TIF. These authorities are units can use TIF? primarily housing and redevelopment authorities (HRAs), economic development authorities (EDAs), port authorities, and cities. In addition, the "municipality" (usually the city) in which the district is located must approve the TIF plan and some key TIF decisions. TIF uses the property taxes imposed by all types of local governments. But the school district and county, the two other major entities imposing property taxes, are generally limited to providing comments to the development authority and city on proposed uses of TIF. The state- imposed tax on commercial - industrial and seasonal- recreational properties is not captured by TIF. What types of TIF Minnesota allows several different types of TIF districts. The legal restrictions districts may he on how long increments may be collected, the sites that qualify, and the created? purposes for which increments may be used vary with the type of district. District type Use of Increment ration ;725 ximum Redevelopment Redevelop blighted areas ears Renewal and renovation Redevelop areas with obsolete uses, not meeting blight test 15 years Economic development Encourage manufacturing and other footloose industries 8 years Housing Assist low - and moderate - income housing 25 years Soils Clean up contaminated sites 20 years Compact development Redevelop commercial areas with more dense developments 25 years How many TIF According to the 2010 report of the Office of State Auditor (OSA), there were districts exist? 2,048 active TIF districts in 2008. The graph shows the relative shares by type of district. TIF Districts by Type in 2008 (2,048 districts) g ousin Redevelopment A -�� Housing (850) \ t j Renewal (25) Swusal Laws (7) So➢s(20) P �4 Pre - 1979(4)) Economic Development (454) Source 20l0Reponoltnastata.ouoltoe For more information: Contact legislative analyst Joel Michael at 651- 296 -5057. Also see the House Research web site for more information on TIF at A. , ,� r< < , , in o The Research Department of the Minnesota House of Representatives is a nonpartisan office providing legislative, legal, and information services to the entire House. House Research Department 1 600 State Office Building I St. Paul, MN 55155 1651-296-6753 I , _ TIF - House Research t Minnesota House of Representatives House Research How TIF Works: Basic Mechanics What is the primary purpose of TIF? Tax increment financing (TIF) is a method of financing real estate development costs —i.e.: Pa,e 1 of 4 71f"- 3 JJ a 1. to encourage developers to construct buildings or other private improvements, or 2. to pay for public improvements, such as streets, sidewalks, sewer and water, and similar improvements. What is the source of the financing? TIF uses the additional property taxes paid as a result of development in the district to pay for part of the development costs. When a new building is constructed, the market value of the property and its property taxes typically rise. Classic examples would be building a new store on an undeveloped parcel or replacing one or more old buildings with a new, larger building. In both of these instances, the market value of the property will rise because the improvements add value to the parcel. How do the mechanics of TIF work? When a TIF district is created, the county auditor certifies the current tax capacity of the properties in the district as the TIF district's "original tax capacity." As the property in the district increases in value, these increases above the original tax capacity are "captured." The law refers to this arnount as the district's "captured tax capacity." When a TIF district is created, the county auditor also certifies an "original tax rate." The original tax rate is total property tax rate that applies in the district i e. the tax rates imposed by all of the local governments th t levy taxes (theg city /town county, school district, and special taxing districts) - 6 & r .. , . ,..; i :a „x, a ,.. ._, , .: .`,✓ ; tt �`'"aaat�ak'F'”" °°w' j `' 'u%a - The "tax increment or increment' for the district is determined by multiplying the oreiginal,iax ratt? by the�pa tuted�i xx �ll capacity. This roughly equals the taxes paid by the captured tax capacity or the increase in taxes that occur as a result of the development. "`-� a,," r -�" "�i� �ilc� �. �u"°+`'r_�" tv g ',�°- d.R.1 �Ar�.. �t R. _¢,• , http:1 /www. house (ew= tate.mfi rs hrd,'is nfo /tifurech.htna. y 4Jt&200b TLF -House Research Pa,,e 2 of What are the typical uses of TIF? TIF traditionally was used as a means of redeveloping urban areas that had old or worn -out buildings in need of replacement or rehabilitation. It was initiated as a tool to help with urban renewal (redeveloping "slums" and "blighted" areas). Its use has spread to other purposes. TIF in Minnesota is generally used to: • Redevelop areas occupied with substandard buildings e Build housing for low- income and moderate - income families a� . Clean up pollution 86. Provide general economic development incentives Finance public infrastructure, such as streets, sewer, water, sidewalks, and similar improvements. (This is not an explicit purposes of TIF, but Minnesota cities frequently use it for this purpose.) ti BtUr�I Y,' y�,.P1.w'Pp What is an example of how TIF is used? Developer is considering building an office building. The city would like to redevelop a site that consists of three parcels of property (parcels A. B, and C in the FIGURE below). Parcel A is vacant and Parcels B and C contain substandard commercial buildings. Parcel D contains a building in good shape. Construction of the office building will require demolition of the two buildings, new utilities (sewer and water), and closing an alley. The cost of acquiring the property, demolishing the substandard buildings, and putting in the utility and alley improvements is $1.5 million. However, Developer could obtain a comparable site elsewhere in the area for $500,000, including special assessments for utilities. The three parcels have a tax capacity of $24,000 and pay $33,600 a year in property taxes (at a 1.4 rate). But if Developer builds the planned $5 million office building, the tax will rise to $304,000 per year (an increase of $250,000). To induce Developer to build on the site, the city designates a project area and creates _a TIF district that includes the > development site. The district consists of parcels A, B, C, and D (the shaded area) "(Parcel D nrinst be fed to'permittT e'� sine city, nllturn,gsell sthe site Developer for stmark t value of $500,000. This Icommonll U called "writing agrees down" the cost De "veto erto ac Olfe TFie site, demolish the substandardbwldin s, and put in the utility improvements and vacate the alley. The city, p Y of the land. The city's $1.5 million cost is "written down" to $500,000. (The city could write It down to zero —In effect, giving the land to Developer.) The computation of the increment is shown in the table. The "project area" is the area in which increment may be spent (e.g., if some of the sewer and water improvements may actually be outside of the district). The extent to which this may be done is restricted by the rules on Figure Project Area TIF District Parcel A (vacant land) Parcel B Parcel C Parcel D (substandard bldg) (substandard bldg) (bldg in good condition) I1ttp: / /AVIV W, house lei. state. mn.usAird,'issi nfo /tifinec(i.htm 4/ 10/2006 I IP - House Kesearcn Return r:� , rnt`c j vi - Table tion of Tax Increment 11 Post Development Tax Capacity Captured Tax Capacity 311 1 $200.000 01 $124,000 $348,000]1 $200,OOD $280,000 (tax rate x captured tax capacity) Does the increment equal the full taxes paid by the captured value? In Minnesota this is frequently not the case. T, "o i +nal tavrat �lirrrrts�tr'sdfe ertt triie ftie g iti gated "by�tlte °tax`nat � effect�whenahe ¢fstrictwa5 created: <tThus, if the to ai gowem'r'ISents increase their tax rates (e.g., to increase revenues or because of changes in the tax base), the increased rates do not yield more increment. Furthermore, in the Twin Cities metropolitan area and in the taconite tax relief area, increment may be reduce by the fiscal disparities contribution for the district's properties, if the city elects that option. R -a !en ., Does TIF captured value increases from inflation or general market effects, as well as those attributable to new \improvements? ., Yes,, R mechanics of TIF capture:al} otttaeie" tcretSSetn ,±yYalue`tiftliFe ^'dts €r7ct. Thus, increments may be attributable to: • Construction of improvements • Overall inflation in property values unrelated to development • Market effects that are attributable to the TIF development, if the properties are in the TIF district. (Proximity to a new development, in many cases, will increase the value of surrounding properties.) • Market effects that are unrelated to the TIF development, if the properties are in the TIF districts. (Market values in areas around TIF districts may increase and these increases may be caused by factors, such as shifts in locational values or tastes, other than the TIF development. For example, some researchers have observed the tendency of cities to put TIF districts in areas that are already experiencing rising property values.) R,gt,.rn .;. What types of developments are not good candidates for TIF assistance? TIF works because developments frequently increase taxable praUleins #or. http: / /www.house.le'—' state .uin.us /hrd /issinfo /tiflnech.htm 4/(0/2006 TLF - House Research Fa(Te 4 01 4 De elcrpments that da'nr�tittetease tt e<intensxty of land= i e "ar'fhaf`d'ecrease the intensity bf tand urse. For example, TIF works if the development replaces an apartment building with a large office building or single family homes with large apartment buildings. a' d6rated apartment"' nonprofits or government buildings) . unless increments are taken from other developments. What are other limitations to using TIF as a financing method? Development costs must be paid "up- front" or at the very beginning of the development, but the increased property taxes (increments) are not paid until later and, then, only in modest amounts (relative to the development costs) spread over many years. This creates an imbalance or mismatch between costs and revenues!,1TTfF,1f lly oVefc'tfrnesthiS-misfrratchRby issuing>b6lMs. `I'frtseUafels +pay:fdt: 1. 06V616p e.g., site acquisition), 2. rti46 t cest?an.tba bisn #s riblincrements,ate receive& The need to pay these interest costs on borrowing, pending receipt of increments is commonly referred to as capitalizing interest. The need to capitalize interest means that increment flows must be larger to pay off this component of the cost. Before 1986, bonds were routinely used as part of TIF financing. These bonds were usually tax exempt, providing a lower interest rate to the city and the developers. The 1986 tax reform made it more difficult to issue tax - exempt bonds for this purpose This took away much of the incentive for the local governments to borrow to anticipation of receipt of tax increments. the"`` pfadice" rf"9 1 —thh'i StSf> tvatr "t3€3etrrdossxntrtusebonds butets{, adrecpectsdaute ftapdrsto.paytbectsts „ands, to'`be:Feirnbnstse a e }rte�er sets ktec ,ms avaeia ilatThis approach (called "payers -you go” financing) shifts the "capitalized interest" costs to the developers. In some cases, the city or development authority absorbs the cost by advancing its money (e.g., from another city or authority fund) until it can be reimbursed with the increments. If the city accepts lower or no interest on these advances, it is using these funds to assist or subsidize the development. Fetw rn ,,o:: R�ti,nn to �,;, T,.,�, Return ti `t http: / /www.house.leg_state_nin us /hrd /issinfoltifinech_htm 4./10 /2006 Economic Development TIF Districts - House Research Minnesota House of Representatives AW _ House Research Economic Development TIF Districts Pa <ue 1 of 4 Duration Limit How long can increments be collected from an economic development district? The law permits increments to be collected for eight years after the receipt of the first increment. Minn Scat._§ 46C, 1716, subd. 1 b(4). Thus, counting the first year of increment, nine years of increment may be collected. Waiver or declining to accept increments has no effect on the duration limit; the waived increments are treated as received for purposes of the duration limit. What is the history of changes in the duration limit for economic development districts? The legislature has changed the duration limit for economic development districts twice since the Tax Increment Financing Act was passed in 1979. The current duration limit was enacted by the 2000 legislature and applies to certification request for districts received after June 30, 2000. 2000 Minn. Laws 2159 -60, ch. 490, art. 11, § 25, codified at r0krin. Stat 469,_1 u, subd. 1b. Prior law generally provided shorter duration limits. • The original 1979 TIF act limited the duration of economic development districts to the lesser of (1) 10 years from the approval of the TIF plan or (2) eight years after the receipt of the first increment. 1979 Minn. Laws 844, ch. 322 § 5, codified at Minn. Stat. § 273.75, subd. 1 (1979 Suppl.). In most instances, the ten -year limit, measured from plan approval, was shorter than the permitted eight years of increment. • in 1993, the legislature increased these limits by one year each, to the lesser of (1) 11 years after plan approval or (2) nine years after receipt of the first increment. 1993 Minn. Laws 2966, ch. 375, art. 14, § 10, codified at Minn. Stat. § 469.176, subd. 1b (1993 Suppl.). These changes applied to districts where the request for certification was made after May 31, 1993, 1993 Minn. Laws 2981, ch. 375, art. 14, § 24. Geographic Areas That Qualify Where may an economic development TIF district be created? There are no general geographic restrictions limiting where economic development districts may be created. No "blight' or similar test must be met, as is the case with redevelopment TIF districts. Instead, the law restricts the purposes for which economic development districts may be used and the types of businesses that can receive assistance. In general. economic development districts are to be used to expand employment or tax base in the state. Subsidies from economic development districts may only be used for specific types of businesses or industries. http:// wtiVIV .house.leg.state.mn.us /hrcl issinfolecdectif.litui 4/10/2006 Economic Development TIF Districts - House Research Pa«e 2 of 4- Where may tourism projects be assisted with economic development TIF? The law limits tourism projects to sites that meet three requirements: 1. The site must be in a county located in development regions 2, 3, 4, or 5 2. The site must be a county whose median income is 85 percent or less of the state median income. This list will vary from year to year, as incomes change. rf , ,, e that meet both criteria 1 and 2. 3. The site may not be located in a city with a population of 20,000 or more. This disqualifies projects in two cities that are in the qualifying development regions: Duluth and Moorhead. subd. 22. Where in the state may economic development districts be used for retail and other commercial developments? Economic development districts generally may not be used for retail, office, or similar commercial developments. Exceptions are allowed for commercial developments of 15,000 square feet or less in and for Permitted Uses of Increment What purposes allow creation of an economic development district? Before a development authority establishes an economic development district, it must make a finding that one of three purposes is satisfied: 1. The district will "discourage" a business from moving out of the municipality or state. 2. The district will increase employment in thetstale. 3. The district will preserve or enhance the tax base of thr"i€atte. r= ., Std � a >9 -k?4, subd. 12. M ay, ancYir1'rirYtrc d'dtifel iprir'iit'dfstncY''62'ttsetl ta' pKifu(aFe assi #ance terra burttdr' #M#rrtfevist wstild'� ra.te,in a nottter<M itt neswt� °city? movii g>itdiiVttverrrrr5nacrpalty to,ap4 �?er,Mr fe$ptq,, lh ,n i. 9 i' su'li'd: "f 2(1 ):`Thus, if ABC Inc. is located in Minneapolis and plans to move to Bloomington, Minneapolis could create an economic development district to keep ABC Inc in Minnea olis However, Bloomington could not create an economic development district to attract ABC Inc Thi&.1irmit ca+i`lSitVct iloo'mingtan `h'offer the ihcdnfit e;`if ABA lr'c: is also c'o't siderlii j a^ possible "IocaYa ©nr'irr'`hrtrtkaertgt. The legislature imposed these requirements to minimize the extent to which economic development districts are used to move businesses from one Minnesota location to another. This is sometimes referred to as "raiding" another city's businesses. It provides little or no advantage to state taxpayers. Before 1990, economic development districts could be used to increase employment or tax base in the municipality. See 1990 Minn. Laws 2582 -83, ch. 604, art. 7, § 8 for the prior language and the text of the 1990 changes. R ,, Is the prohibition on "raiding" Minnesota businesses enforceable by a court? http:l /X- VAVNV. house. teal, state. m n.us /lircl;'i ssi iifo,'ecdevtif.litm 4/ 10, 2006 ncnnonuc ueveropment it r uisuicis - riouse icesearc❑ ramie 3 Ul -V Private legal actions may be brought to enforce the requirements of the TIF act. However, the prohibition on "raiding" Minnesota businesses derives from a required "finding" by the development authority." ii ^ + ' _�, subd. 12. It is not clear under what circumstances a court would conclude a development authority had acted contrary to the law, if it made the required findings but the actual facts were demonstrably to the contrary. Recent decisions, such as Walser v. Rich field, 635 N.W.2d 391 (Minn. App. 2001), suggest a court maybe willing to review these findings to determine whether they are supported by substantive evidence or are arbitrary and capricious. What types of businesses or developments may be assisted with economic development TIF? The law allows tax increments from economic development districts to be used only for six types of businesses: 1. Manufacturing 2. Warehousing 1 Research and development 4. Telemarketing 5. Tourism in qualifying counties 6. Qualified border retail facilities w, 4rit_ subd. 4c This means thaf'lyr4Ydtit rlittic #s; sin „genral,,maynot b'e' used forretaii or= general office del elopment. Nr•.,> rriay, ,they -be used4ovhousing deu lgpmegts. Before the 1988 amendments, economic development districts were routinely used for these purposes (retail, office, and housing). 1988 Minn. Laws 1989, ch. 719, art. 12, § 16, codified at Minn. Stat. § 469.176, subd 4c (1989 Suppl.), first imposed restrictions on the permitted types of developments that could receive economic development assistance. Note, however, a special rule allows use for limited commercial developments in small cities. r -a,r +, a ";,,. Maya portion of economic development district projects be used for retail, office, housing, or other nonqualifying uses? The law permits up to 15 percent of the assisted buildings and facilities (measured by square footage) to be used for nonqualifying uses. Thus, a development could contain a small amount of retail or housing development, if it met the 15 percent test. Furthermore, the law allows "space necessary for and related to the activities" of qualifying types of businesses. For example, an office in which administrative and personnel functions are carried on for a manufacturing plant would qualify under this provision. This related space would not count against the 15 percent limit. What types of facilities may be assisted in connection with economic development tourism projects? The law permits the following types of developments to be assisted: • Privately owned convention and meeting facilities • Marinas • Hotel, motel, or lodging facilities • Nonhomestead dwelling units (such as a condominium or townhouse development used by their owners for seasonal purposes) n ;'a _ +i , z 1Mr, 17-'=, subd. 22 (4). What are the requirements for a "qualified border retail facility "? To be a qualified border retail facility, the TIF district and development must be: 1. Located in a small city within one mile of the state border. 2. Located outside of the seven - county Twin Cities metropolitan area. http: / /www.house.le__state. ntn. us!hrd!i ssinfo /ecdevtif. htm 4/10/2006 tc0n0n1lc vevelopment 1IV lllsu7cTS - House KesearCn Yaoe 4 or :i 3. Consist of at least 25,000 square feet of retail space that is either new or substantially rehabilitated. 4. Likely to locate outside of Minnesota, if TIF assistance is not provided. This provision was enacted to permit the use of TIF for a mall in the city of Ortonville. It likely applies to only a few other situations. Return to rop May small cities use economic development TIF for retail and office space? Although the general rule does not permit it, small cities may use economic development districts for retail and office developments. , i s = % , subd. 4c(c). This assistance is limited to no more than 15,000 square feet of a "separately owned commercial facility." The 15,000 square foot limit appears to apply to the facility and is not a cumulative limit for the city. Thus, a city could assist several commercial facilities, each of which has 15,000 square feet. The same individual or entity may not own more than one of these facilities in the city. Assistance must be provided directly to the development. Land write - downs, grants, sewer and water connections to the property would qualify. By contrast, general infrastructure improvements that benefit a broader area (e.g., street improvements) would not. The district may not "pool' increments — spend increments on activities outside of the district. Return. to too What is a small city? A small city is a city with a population of 5,000 or less. The city may not be located within 10 miles of another city with a population of 10,000 or more ',Awn a 9 ? 7j, subd. 27. This is intended to disqualify suburbs of larger cities. Qualification is determined based on the year of certification =mn, ~ :j i?,, subd. 4c(e). (D ili5ying small cities. Ret lrn,to top Data on Use of Economic Development Districts How many economic development districts are active? According to the May 2003 Rejp -rr of e F, /k ;, r: ^rthere were 677 active economic development districts at the end of calendar year 2001. This is a decrease of 18 districts over calendar year 2000 or a 2.6 percent decrease. Return to or, What share do economic development districts make up of all TIF districts? Economic development districts make up about 31 percent of all TIF districts, according the Mate Auditors data for calendar year 2000. Return to !on Return to Prop, tg Ti Return to Hou.e littp://www.lioLise I e,. state_mn_us. hrd i ssinfo, ecdevti f 11tm 4/10/2006 f • ",.All • t *14 xN /l1 I \'I 6i.UJUVI►I El Ctrco- iJ9 ax increment financing (TIF) is a tool used by cities and other development authorities to finance certain types of development costs. The public pur- poses of TIF are the redevelopment of blighted areas, construction of low - and moderate - income housing, provision of employment opportunities, and im- provement of the tax base. Tax increment financing enables a city to use the additional property taxes gener- ated by a new development to pay for certain development expenses. With TIF, a city "captures" the additional property taxes generated by the development that would have gone to other taxing jurisdictions and uses the "tax increments" to fi- nance the development costs. How have cities and other development authorities used tax increment financing in recent years? • Have legislative restrictions, particularly those enacted in 1990, been effective in correcting the misuses of tax increment financing? Are further restrictions or other legislative approaches needed? TIF requires different taxing jurisdictions to share in the costs of financing local development. The state finances more TIF costs than other taxing jurisdictions be- cause it compensates school districts for most of their tax revenue losses through increases in state education aids. The House Research Department has estimated Cities are the that total state costs were $100 million in 1994, assuming that the development primary users would have occurred elsewhere in Minnesota without TIF. of TIF, but the state and Cities used TIF extensively in the late 1970s and 1980s. However, perceived mis- COUIIty use of TIF prompted the Legislature to place restrictions on the program in 1988, 1989, 1990, and 1995. Conflicting opinions about whether current laws are too re- governments strictive or too permissive prompted our study. Our evaluation addressed the fol- share in its lowing questions: costs. • How has the use of tax increment financing changed over time? Are there geographic variations in the use of tax increment financing in Minnesota? How have cities and other development authorities used tax increment financing in recent years? • Have legislative restrictions, particularly those enacted in 1990, been effective in correcting the misuses of tax increment financing? Are further restrictions or other legislative approaches needed? x TAX INCREMENT FINANCING To conduct our study, we visited 43 cities and 3 counties and interviewed local of- ficials. Prior to our site visits, we reviewed TIF plans and bonded indebtedness re- ports filed with the Minnesota Department of Revenue and the TIF annual disclosure statements and financial reports filed with the Office of the State Audi- tor. We also analyzed data reported by county auditors to the Revenue Depart- ment in the Abstract of Tax Lists and Tax Increment Financing Supplement. The Minnesota Tax Increment Financing Act of 1979 permits cities and other de- velopment authorities to establish tax increment districts for: (1) redevelopment, (2) renewal and renovation, (3) soil conditions, (4) housing projects, (5) economic development, (6) mined underground space, and (7) hazardous substance clean- up. Districts established prior to August 1, 1979, when the TIT Act took effect, are referred to as "pre -1979 districts." The TIF Act placed significant restrictions on the use of tax increment financing. For example, it limited the duration of districts, the geographic areas that may be designated for certain districts, and the type and amount of tax increment spend- ing. The act also required cities to develop TIF plans and make annual financial reports on their districts. Between 1988 and 1990, the Legislature enacted many additional restrictions. For example, the Legislature: limited the ability of cities to capture tax increments from development not stimulated by TIF; adopted stricter blight requirements for redevelopment districts; required larger portions of increments generated by rede- velopment districts to be spent on blighted properties; restricted the use of eco- nomic development districts to manufacturing and related activities; and limited the ability of cities to "pool" increments from multiple districts. The Legislature also reduced state aid paid to local governments that created districts after April 30, 1990, referred to as "post -1990 districts," but amendments in 1995 reduced the impact of these aid reductions. Overall, we found that: Legislative restrictions on the use of tax increment financing have addressed many of the previously identified problems with TIF and helped slow the growth of TIF activity. Captured tax capacity increased by an average of 24 percent per year between 1984 and 1989, but increased by only 1.9 percent per year between 1990 and 1995. The number of districts with captured tax capacity grew by 25 percent annu- EXECUTIVE SUMiViARY Captured tax capacity increased by an average of only 2 percent per year in the 1990s. Xi ally between 1986 and 1989, compared with only 3.4 percent between 1991 and 1995. In 1995, Minnesota had 1,436 tax increment districts in 363 cities and towns. The districts had $203.3 million in captured tax capacity, or 8 percent of these local governments' total tax capacity. Percent Annual Change in Total Captured Value, . 1984 -95 Percent Change 30 25 20 15 10 s 0 -5 -10 84 85 86 87 88 89 90 91 92 93 94 95 Year Source: Program Evaluation Division analysis of Minnesota Department of Revenue data. All of Minnesota's large cities, 90 percent of medium -sized cities, and about one- fourth of small cities had at least one tax increment district in 1995. Districts in large cities were larger and captured more tax capacity, on average, than those in smaller cities. We also found that: • Pre -1979 districts were larger and captured more tax capacity, on average, than districts created later, and post -1990 districts were smaller, on average, than older districts. Although the 110 pre -1979 districts represented only 8 percent of all TIF districts, they accounted for 30 percent ($61 million) of the total 1995 captured tax capac- ity. In contrast, the 346 post -1990 districts represented 24 percent of all districts but accounted for only 5 percent of the captured tax capacity. In part, this is be- cause many post -1990 districts are just starting to generate tax increments; over half were certified in 1992 and 1993. However, post -1990 districts were also smaller than older districts. The average number of parcels per district declined from 146 for pre -1979 districts to 25 for August 1979 -April 1990 districts and 8 for post -1990 districts. Since late 1990, for the most part Minnesota cities have used tax increment financ- ing productively to induce the redevelopment of blighted areas, to encourage the xii TAX INCREMENT FINANCING Captured Tax Capacity and District Size by Time of Creation As a result of 1990 restrictions on economic development districts, retail and of- Average Percent of Average Number Numberof Statewide Captured Time of of Parcels per Captured 1995 1995 Captured Tax Capacity District's Creation Districts District Tax Capacity Tax Capacity Per District Pre -1979 110 146 $61.1 million 30% $555,007 August 1979 -April 1990 As a result of 1990 restrictions on economic development districts, retail and of- August 1979 - December 1985 336 40 68.5 million 34 $203,863 January 1986 - December 1988 339 19 43.0 million 21 126,971 January 1989 -April 1990 305 14 21.4 million 11 70.062 $13 Sub Total 980 25 2.9 million 65% $135,622 Post -1990 346 8 $9.3 million 5% $26,967 All Districts 1,436 30 $203.3 million 100% $141,568 Source: Program Evaluation Division analysis of Department of Revenue's 1995 TIF Supplement database. and filling. construction of low- and moderate - income housing, and to assist with expansion of manufacturing businesses. Based on our review of 172 post -1990 tax incre- ment districts in our sample cities and counties, we found that: About two -fifths of the post -1990 tax increment districts in our sample were created to assist new or existing manufacturing businesses, while office developments, retail facilities, and housing projects each accounted for one -fifth of the districts. Most recent As a result of 1990 restrictions on economic development districts, retail and of- retail projects fice projects have occurred, for the most part, in areas that needed redevelopment, were in areas rather than on vacant land. Some cities used TIF to facilitate the development of needing retail stores and office buildings on bare ground that had poor soils. However, leg - islative amendments in 1995 required that increments from soils condition dis- redevelopment. tricts be spent only for pollution clean -up, so tax increments from these districts can no longer be used to finance extensive excavation, soil compacting, grading, and filling. Legislation tightening the "blight" criteria for redevelopment districts and requir- ing that large portions of increments to be spent on blighted properties have re- duced the tendency of cities to create very large redevelopment districts or to use redevelopment districts for purposes other than rehabilitating blighted parts of a city. We found that: • Most post -1990 redevelopment districts were smaller than pre -1990 districts, were contiguous, and were focused on individual projects. Plans for post -1990 redevelopment districts usually include assistance with demo- lition and renovation of existing structures and site preparation for new facilities. ulU._ _t It is difficult to quantify the extent to which cities have not pursued development projects because of possible state aid reductions, although some city officials told us that the potential aid changes have caused them to reduce the number of tax in- crement districts they otherwise would have certified. So far the state aid reduc- tions have had a relatively small fiscal impact because they only applied to districts certified after April 30, 1990, and most districts qualified for a five -year grace period. State aid payments will be reduced by a total of $1.6 million in 1996, affecting 64 cities, 2 counties, and 1 town. Because most of the legislative restrictions on TIF have not applied to existing dis- tricts, we also found that: —.. • Legislative restrictions on the use of TIF have not addressed the use of tax increments from districts established between 1979 and April 30, 1990. Some cities have created large "project areas," or areas in which increments from TIF districts may be spent. Sometimes these project areas encompass entire cities or large portions of them. The TIF law allows cities to "pool," or combine, tax in- crements from multiple districts a within project area, and to spend tax increments anywhere within the project area. We found that: • Of the 45 cities and counties that we visited with more than one TIF district, two- thirds have pooled tax increment revenues between districts or have project area configurations that would permit pooling. Many cities use tax increments ' Many rifles and development authorities have amended tax increment from pre -1990 plans for their pre -1990 districts in order to spend tax increment dollars for general public improvements and community projects. districts as a general As a rule, cities do not terminate districts before their expiration dates and fre- purpose quently use tax increments as a general purpose funding source. We found rises funding source. spending tax increments on park improvements (ice arenas, playground equip- ment, land acquisition), community centers, freeway interchanges, bridges, water towers, and wastewater treatment plants. Some cities have used tax increments from pre -1990 districts to capitalize economic development funds and business loan programs and to establish reserve accounts for various purposes. If TIF dis- tricts were retired after serving their original purpose - rather than being continued to finance activities that many cities pay for with their own tax dollars - then coun- ties and other taxing jurisdictions would be able to reduce their tax rates and state aid to school districts could be lowered without affecting educational programs. In contrast, we found no cities pooling increments from post -1990 districts at this time. Legislative limits on the pooling and spending of tax increments from post - 1990 districts limit the degree to which increments from these districts can be used to fund general public improvements. However, since most post -1990 dis- tricts are less than five years old and are not yet generating large amounts of tax .dv TAX INCREMENT FINANCING increment revenues, it is still too early to evaluate the impact of these restrictions on post -1990 districts. While we did not conduct a financial audit, we reviewed the financial status of over 400 TIF districts in our sample cities. We found that: The vast majority of tax increment districts are financially stable and generate sufficient tax increment revenues to pay for project costs. Only a few cities have needed to levy general taxes to make up for revenue shortfalls. Some cities have used pooled increments from two or more districts to support dis- tricts that were not able to generate enough increments to pay project costs. Other non- performing districts involved "pay -as- you -go financing," where developers provide the up -front financing and bear the risk of non - performing projects. Although the extent of pay -as- you -go financing is difficult to estimate, we think this type of financial arrangement has increased. Among the 172 post -1990 dis- tricts we examined, over half used pay -as- you -go arrangements, one - quarter used internal loans from other city funds, and less than one -fifth issued bonds to fi- nance the project costs. One concern we have is that some cities using pay- as -you- go financing have not specified project activities and expenditures in their TIF plans, making it difficult to ensure that developers are spending TIF funds for ac- tivities allowed by state laws. COMPLIANCE ISSUES The purpose of this study was to gain insight into how cities are currently using TIF, not to comprehensively audit cities' finances or their compliance with state law. However, we found that: The quality of annual financial reports for tax increment districts is mixed. While nearly all tides and development authorities filed annual disclosure state- ments and financial reports, some did not file reports for all districts. For instance, some cities only filed reports for districts with captured value. Several cities filed one combined statement for all pooled districts, making it impossible to analyze revenues and spending for individual districts. In addition, some cities filed in- complete statements. Finally, nine of the cities we visited filed unaudited annual financial statements. dea jd'uttirc »ltf foY' ljie aye `df tai iticteiiieiit "ifranditl`gp'' While the TIF Act requires cities to "set forth in writing the reasons and supporting factors" behind the "but for" finding, we found that: EXECUTIVE SLMMARY xv • Some cities were unable to provide documentation or analysis on how their TIF districts met the "but for" requirements. State law also requires cities and development authorities to file TIF plans with the Department of Revenue. Five of the cities we visited had not filed any TIF plans with the Department of Revenue and nearly half filed some but not all plans. Legislative Some cities submitted plans using "boilerplate" language, which did not identify restrictions specific development objectives or activities, making it difficult to determine how have been they are using TIF. reasonable, but Enforcement Suggestions have made TIF Finally, cities with housing districts are required to monitor the incomes of resi- Oversight is dents to ensure that the project is fulfilling its commitment to provide housing for more difficult low- and moderate - income people. We found that some cities do not appear to to use. have any monitoring procedures in place or do not appear to be enforcing the in- laws are come requirements. f_-_ �Z In our view, the changes made to the TIF law in recent years have been reason- able, even though they have made TIF more difficult to use. However, we believe that more comprehensive monitoring and oversight will be needed to ensure that the new laws are properly enforced. As a result of 1995 legislation, the Office of the State Auditor has assumed new enforcement responsibilities for the TIF Act this year, and we offer several suggestions for implementing those responsibilities. We also suggest policy options the Legislature may wish to consider for dealing with pre -1990 tax increment districts. Also, as noted in our report, the quality of TIF plans, annual disclosure statements, financial reports, and debt reports has been mixed. We are particularly concerned about financial reporting for pay -as- you -go arrangements, which do not rely on bonded debt. We suggest that: Enforcement Suggestions We think the Office of the State Auditor should focus its monitoring efforts on Oversight is those areas we have identified as problems with tax increment financing. In par - needed to ticular, we suggest that: ensure that TIF laws are • The State Auditor should monitor compliance of cities and properly development authorities with state laws governing: (1) the pooling enforced. and spending restrictions for post -1990 districts as they mature, (2) the types of TIF spending in all districts (especially those using pay -as- you -go financing), (3) restrictions on economic development districts, (4) the "but for" requirement, and (5) the "blight" requirements for redevelopment districts. Also, as noted in our report, the quality of TIF plans, annual disclosure statements, financial reports, and debt reports has been mixed. We are particularly concerned about financial reporting for pay -as- you -go arrangements, which do not rely on bonded debt. We suggest that: xvi TAX INCREMENT FINANCING a The State Auditor should work with cities and development authorities to ensure that all tax increment financing users are aware of and comply with the reporting requirements contained in state law. The consolidation of the TIF reporting requirements under the State Auditor's Of- fice, which is also responsible for financial and compliance auditing, should result in higher quality financial data. Options for Legislative Consideration We think that the continued use of tax increment revenues from pre -1990 districts to finance general public improvements and community projects is an issue requir- ing legislative attention. Under normal circumstances, cities would finance these projects with their own funds, special assessments, or other sources of funding, such as user fees. Although some types of public improvements may contribute to development activity, most improvements have little direct impact on tax base or Therefore, we recommend that: The Legislature should consider placing additional restrictions on the use of tax increment revenues for general public improvements and community projects. Restrictions should apply to all districts certified between August 1, 1979 and April 30,1990. These districts account for the majority of 1995 captured tax capacity, and some of Restrictions on them could last for up to 19 more years. using TIF for Restrictions on ttsi ae° imturemteutqevemzes 4a4inaxtce�gencral publidifmY my general publics n{s�}d.be,£d iti�ramurmbeofyst rPne option would be to prohibit improvements the use of tax increments from pre -1990 districts for specific purposes, such as Could be park improvements and recreation facilities, community centers, civic centers, ice structured in arenas, wastewater treatment plants, water towers, freeway interchanges, or several bridges. different ways. A second option would be to prohibit any future amendments to existing TIF plans that authorize increased tax increment spending for general public improvements and community projects. I£ the Legislature pursues this alternative, it should con- sider making this change retroactive to, say, January 1, 1996, to prevent cities and development authorities from approving amendments before a future effective date. A third option would be to address those cases involving cities that have already adopted amendments to TIF plans for pre -1990 districts. The Legislature could al- low the use of tax increments for new projects for which cities have issued bonds or entered into other legally binding commitments by a specified future date. Af- ter the specified date, any projects remaining in the city's amended TIF budget could not be financed with tax increments. This option could be structured similar EXECUTIVE SUMMARY xvii to the five -year spending restriction that is in the law for post -1990 districts. Most tax increments collected from a post -1990 district must be spent on activities for which bonds have been issued or binding legal commitments have been made within five years after the district's approval. To prevent cities from continuing to approve amendments for increased spending, this option could be combined with „ ,�. the option that" r` olilbits `Tutu'r "e "amendrrteh¢sutis inresai,,spe?dingos gp�a9a a1 ipubltc` " "itr�relveh4�nts >�:; Finally, the Legislature could require that future tax increments from all pre -1990 districts be used to pay outstanding bonds or contractual obligations entered into by some date in the near future. This could be similar to limitations already ap- proved by the Legislature for pre -1979 districts. In 1988, the Legislature required that all tax increments collected from pre -1979 districts after April 1, 2001 be used to retire bonds that were issued before April 1, 1990. By law, cities must decertify pre -1979 districts as soon as those bonds are retired. The Legislature could re- quire that all tax increments received after April 1, 2001 (or some other date) from tax increment districts created between 1979 and 1990 be used to retire bonds is- sued by April 1, 1996 (or some other date). This option is more restrictive than the prior option because it could limit the ability of some cities to complete initial projects identified in approved TIF plans. For instance, it is possible that weak market conditions or failures on the part of a developer have prevented some cities from issuing bonds for projects in the original TIF plan. Under existing law, the Revenue Department is charged with enforcement of the income requirements for housing districts, but it is not currently enforcing this pro- vision because of limited resources within the Department. When the Legislature transferred TIF enforcement responsibilities to the State Auditor's Office in 1995, enforcement of the income requirements remained with the Revenue Department. We recommend that: • The Legislature should consider whether the Revenue Department or the State Auditor's Office should be responsible for enforcing the housing district income requirements. The Legislature could retain the enforcement responsibilities with the Revenue De- partment and provide funding for that function or it could transfer the function to the State Auditor's Office and consolidate it with other TIF enforcement responsi- bilities. Alternatively, the State Auditor's Office could monitor compliance with the income requirements as it conducts its other TIF audit and compliance respon- sibilities and refer any violations to the Revenue Department for enforcement. The Legislature may want to clarify its intentions related to the use of TIF for gov- ernment- leased buildings. The TIF Act limits the use of TIF for buildings that are government -owned and used primarily to conduct government business. Some cit- ies have used tax increments to support development projects which lease space to government agencies. On the one hand, developers do not always know who their tenants will be, and they cannot refuse to lease to government agencies. On the other hand, it is hard to argue that office space for government agencies would not develop in the absence of TIF. xviii TAX INCREMENT FINANCING Finally, the Legislature may want to require that cities with economic develop- ment districts or projects providing TIF assistance to manufacturing, office, or re- tail developments report on wages paid as part of the TIF annual disclosure statement. The Legislature may also want to require that the Minnesota Depart- ment of Trade and Economic Development analyze the wage data and report to the Legislature. Dated: February 16, 2007 Original Documents Approved: TIF District No. 1 02/12/87 - Original 08/24/89 - Modification No. 1 10/28/93 - Modification No. 2 12/19/02 — Modification No. 3 Municipal Development District No. 1 02/12/87 - Original 08/24/89 - Modification No. 1 08/08/96 - Modification No. 2 12/19/02 - Modification No. 3 NORTHLAND SECURITIES Northland Securities, Inc. 45 South 7rh Street - Suite 2500 Minneapolis, MN 55402 (800) 851 -2920 Member NASD and SIPC TABLE OF CONTENTS ARTICLE I — DEVELOPMENT PROGRAM Section A Statement of Public Purpose ................................................... ............................... 3 Section B Statutory Authority ................................................................. ............................... 3 Section C Property Description ............................................................... ............................... 3 SectionD Relocation ............................................................................... ............................... 3 Section E Development Program ............................................................ ............................4 -6 Section F Administration and Maintenance of District ........................... ............................... 6 ARTICLE II — TAX INCREMENT FINANCING PLAN Section A Statutory Authority ................................................................. ............................... 7 Section B Statement of Objectives .......................................................... ............................... 7 Section C Development Program ........................................................... ...........................7 -11 Section D Description of Property in the Tax Increment Financing District ....................... 11 Section E Classification of the Tax Increment Financing District ... ............................... 11-12 Section F Parcels in Acquisition ........................................................... ..........................12 -14 Section G Estimate of Costs .................................................................. ............................... 14 Section H Estimated Amount of Loan/Bonded Indebtedness .................. .............................14 Section I Sources of Revenue .............................................................. ..........................14 -15 Section J Original Tax Capacity Value ................................................ ............................... 15 Section K Estimated Captured Tax Capacity Value .............................. ............................... 15 Section L Duration of the District ......................................................... ..........................15 -16 Section M Estimated Impact on Other Taxing Jurisdictions .................. ..........................16 -20 Section N Modifications of the Tax Increment Financing District ........ ............................... 20 Section O Limitation on Administrative Expenses ................................ ............................... 20 Section P Limitation on Duration of Tax Increment Financing Districts ............................21 Section Q Limitation on Qual. of Property in TIF District not Subject to Improvement..... 21 Section R Limitation on the Use of Tax Increment ............................... ............................... 21 Section S Notification of Prior Planned Improvements ........................ ............................... 21 Section T Excess Tax Increments ......................................................... ............................... 22 Section U Requirement for Agreements with the Developer ................ ............................... 22 Section V Assessment Agreements ....................................................... ............................... 22 Section W Administration of the Tax Increment Financing District ...... ............................... 22 Section X Annual Disclosure Requirements ......................................... ..........................22 -27 SectionY Assumptions .......................................................................... ............................... 27 Section Z Municipal Findings ............................................................... ..........................27 -28 Section AA Business Subsidy Compliance .............................................. ..........................28 -29 Appendix A Map of Municipal Development District .............................. ............................... 30 Appendix Al Map Modified Municipal Development District .................. ............................... 31 Appendix B TIF District Parcels Cover Sheet .......................................... ............................... 32 Appendix B1 TIF District Parcels ............................................................... ............................... 33 Appendix B2 TIF District Parcels ............................................................... ............................... 34 Appendix B3 TIF District Parcels ............................................................... ............................... 35 Appendix B4 TIF District Parcels ............................................................... ............................... 36 Appendix B5 TIF District Parcels ............................................................... ............................... 37 Appendix C Original Estimate of Increments ........................................... ..........................38 -41 Appendix D Original Estimate of Taxes Generated .................................. ............................... 42 Appendix E Original Estimate of Bonding Capacity ................................ ..........................43 -44 Appendix F Estimated Budget .................................................................. ..........................45 -46 TIF Plan 100406.doe Article II — Tax Increment Financing Plan Amendment to: DEVELOPMENT PROGRAM A. Statement of Public Purpose NORTHLAND OSECU RI TI ES It is found that there is a need for new development in the City of Corcoran, Minnesota, to encourage development within areas which are already built up, provide employment opportunities, improve the local tax base, and improve the general tax base of the State. B. Statutory Authority The City of Corcoran modified the municipal development district as authorized by Minnesota Statutes, Sections 469.124 to 469.134. According to Minnesota Statutes, Section 469.125, Subdivision 11, a development district is a specific area within the corporate limits of a municipality which has been so designated and separately numbered by the governing body. The City of Corcoran is also utilizing the development finance provisions encompassed in Minnesota Statutes, Sections 469.174 to 469.179, the Minnesota Tax Increment Financing Act, in conjunction with the municipal development district. C. Property Description The area encompassed by the Municipal Development District is legally described as follows: All of Sections 2, 3, 4, 5, 7, 11, 14, 18, 23; and the eastern one -half of Section 6 and the northern one -half of Section 26, City of Corcoran, County of Hennepin, Minnesota. The area added as part of Modification No. 1: The Western one -half of Section 24, City of Corcoran, County of Hennepin, Minnesota. The area added as part of Modification No. 2: All Sections, 19, 30 & 31, City of Corcoran, County of Hennepin, Minnesota. The area added as part of Modification No. 3 (Reflected in Exhibit Al All Sections, 1, 12, 13, the eastern one -half of Section 24, and the northern one -half of Section 25. The area added as part of Modification No. 4: The southern one -half of Section 32. Exhibit A2 shows the District after Modification No. 4. D. Relocation The City accepts its binding obligations under provisions of federal and state law (Minnesota Statutes, Section 469.133) for relocation and will administer payment benefits to individuals and businesses to be displaced by public action. City of Corcoran, Minnesota Article H- Tax Increment Financing Plan NORTH LAN D®SECURrrtES E. Development Program The municipal development district was created for the purpose of constructing new commercial /retail space in order to improve and strengthen the City's commercial base; dedicating land for parkland; and promoting future commercial, industrial and housing development. The City of Corcoran is authorized to use eminent domain, issue bonds and to acquire, construct, reconstruct, improve, alter, extend, operate, maintain and promote development programs in each municipal development district created. Tax increments are currently utilized to assist in the financing of land acquisition, street upgrading, water, sewer, recreational facilities and other public improvement costs associated with providing suitable sites for currently proposed commercial /retail development projects and future commercial, industrial and housing projects. Statement of Objectives The City Council of the City of Corcoran, Minnesota, determined that it was necessary, desirable and in the public interest to modify Development District No.I in the City of Corcoran pursuant to the provisions of Minnesota Statutes, Sections 469.124 to 469.134. The City of Corcoran determines that the funding of the necessary activities and improvements in the development district shall be accomplished through tax increment financing in accordance with Minnesota Statutes, Sections 469.174 to 469.179. The City of Corcoran and the Corcoran City Council seek to achieve the following objectives through this development plan: I a. Acquire land or space which is vacant, unused, underused, o— inappropriately used. b. Improve the financial base of the City and State. C. Provide employment opportunities. d. Encourage the development of commercial /retail, industrial and housing projects. e. Acquire property containing structurally substandard, economically and functionally obsolete buildings and remove such buildings for which correction of such deficiencies is not economically feasible. f. Eliminate blighting influences which impede potential development. g. To provide incentives to the business public to rehabilitate vacant, underutilized buildings. h. To make land unsuitable for structural development available to the public for innovative development design use. i. To provide property to those businesses whose current strength may be augmented by expansion opportunities. j. To provide a retail service level required by the residents of the community. k. To eliminate or correct physical deterrents the to development of land. To achieve a high level of design and landscaping quality to enhance the physical City of Corcoran, Minnesota 4 Article H— Tax Increment Financing Plan NORTHLAND 0SECURvriEs environment. in. To accomplish convenient and adequate parking to serve the needs of the areas. n. Acquire land for park and recreational facilities. o. Provide facilities in conjunction with park development including buildings, ball diamonds and other sport areas. p. To provide adequate streets, utilities, and other pubic improvements and facilities to enhance the area for both existing, new and future development. q. Coordinate elements of the City's Comprehensive Plan with these project objectives. r. Provide maximum opportunity, consistent with the needs of the City, for development by private enterprise. 2. Revitalization Project Proposals and Public Facilities Revitalization within the Development District must be financially feasible, marketable and compatible with longer range City development plans. The following recommendations represent the options that satisfy the development for the project area in the initial state while taking advantage of opportunities which are currently available: a. Clearance and redevelopment; b. Relocation of buildings and the inhabitants of buildings; C. Provision of building sites for business expansion; d. Dedication of land for parkland enhancement; C. Vacation of rights -of -way; f. Dedication of new rights -of -way; g. Rearrangement of public service right -of -ways for servicing existing, new, and future commercial, industrial, and housing projects; It. Land acquisition; i. Land leasing; j. Soil corrections for land preparation; k. Commercial, retail, industrial, and housing development; 1. Installation or replacement of public facilities including recreational facilities and utilities; and M. Assurance of maximum opportunity for future developments by providing desirable and developable sites in the area. 3. Open Space to be Created City of Corcoran, Minnesota 5 Article H— Tax Increment Financing Plan NORTHLAND®SECUM I'IES In addition to the provisions of Minnesota Statutes, Section 469.125, Subdivision 5, open space may be created for the purpose of enhancing current and future commercial, industrial, and housing development, complimenting adjacent park facilities, providing circulation of pedestrian traffic, special landscaping of residential and public property, and creation of recreational facilities including parks and walkways. The open space will be aimed at the improvement of the quality of life, quality of transportation and the physical facilities. 4. Environmental Controls The proposed redevelopment projects in the Development District do not present any permanent environmental problems. All municipal actions, public improvements, and private development shall be carried out in a manner that will enhance, rather than detract from the natural environment. All necessary environmental permits and clearances will be obtained. 5. Proposed Reuse of Property a. Current Land Use The current land uses in the development district include C -1, limited business district; C- 2, general business district; R -1, rural residential; and overlaying floodplain and wetlands. The development sites are currently zoned in conformance with zoning standards for commercial /retail use. b. Proposed Reuse of Land Under the proposed development projects, the land use would continue to be utilized as C -1, limited business district and C2, general business district accommodating a commercial lumberyard with additional office /retail space, two automobile repair facilities, and a retail liquor store facility with potential future expansion. Land lying in the overlaying floodplain and wetland area (northeastern portion of Corcoran) was developed into an 18 -hole golf course due to the land's unsuitability for support of structural development. F. Administration and Maintenance of District Maintenance and operation of the public improvements in the municipal development district will be the responsibility of the development district administration of the City. Each year the administrator of the municipal development district will submit to the City Council the maintenance and operation budget for the following year to be charged to the property in the district. The City Council will certify the assessments to the County Auditor for collection. The City Council will levy these assessments, if any, in accordance with the procedures established in Minnesota Statutes, Section 429.061. The municipal development district administrator will administer the municipal development district pursuant to the provisions of Section 469.131 of the Minnesota Statutes provided, however, that such powers may only be exercised at the direction of the City Council. No action taken by the administrator of the development district pursuant to the above - mentioned powers shall be effective without authorization by the City Council. City of Corcoran, Minnesota Article H— Tax Increment Financing Plan NORTH LAN U®SECURITIES Modification No. 3 to: TAX INCREMENT FINANCING PLAN PART II Tax Increment Redevelopment District No.1 Modification No. 3 Finance Plan A. Statutory Authority The City of Corcoran is authorized to modify a tax increment district pursuant to Minnesota Statutes, Sections 469.174 to 469.179. B. Statement of Objectives See Part I, Section E, Subsection 1 of this report. C. Development Program 1. Description of Development Activities The development program consists of five separate new construction projects. The first involves a commercial lumberyard situated on approximately 5.5 acres of land with a 10,000 square foot building of available commercial /retail space in addition to outside storage sheds; the second, a 3,600 square foot automobile repair facility; the third, an automobile repair facility whose site consists of approximately 40,000 square feet; the fourth, a retail liquor store whose construction in Phase I consists of a one story, 3,400 square foot building and Phase II, a one story, 4,250 square foot building; and the fifth, an 18 hole golf course in which construction in Phase I encompasses the golf course' green and in Phase II, a 3,100 square foot clubhouse and maintenance building. Modification No.1 and 2 includes additional public improvement activities as well as acquisition of land for municipal recreation facilities, recreational facilities and land acquisition to eliminate blight and provide development sites. The City will acquire the blighted parcel with recreational land proceeds from reimbursed tax increments until there is a development agreement on the cleared land. 2. Development Activities Covered by Contracts There are no development activities under contract as part of Modification No.1 or 2. 3. Other Development Not Under Contract Reasonably Expected to Occur in the Project As a part of the City's overall revitalization program within the redevelopment district, the development program provides for future new construction of other commercial, industrial, and residential housing projects, public utilities, recreational facilities and public improvements within the development district area. The future development would be dependent upon the availability of public funds. The City has identified significant development needs that remain through the duration of the TIF District, which would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and, therefore, the use of TIF is deemed necessary. The TIT Plan as amended will afford maximum opportunity, consistent with the sound needs of the City as a whole, for development of the District by private enterprise. The assistance proposed in this plan is directed at the next stage in the City's development, focusing on areas that have presented development problems in the past, including the City of Corcoran, Minnesota Article II — Tax Increment Financing Plan NO RTHLAND� SEC URITIES downtown, and areas adjacent to County Road 19, to meet the City's needs long -term future needs. As such, the anticipated development will maximize private development in a way that meets the City's overall economic development and land use goals. The City has estimated costs for potential improvements in the Downtown area. These projects are based on information developed during the Comprehensive Plan process, as well as past studies. The estimated costs are based on the best available information, however; actual costs may deviate significantly. Further planning studies will be required to further refine the scope of the improvements, the estimated costs, and the potential timing of the improvements. Exhibit F includes an Estimated Budget of the costs for the potential improvements in the Downtown area and in areas on the west side or the City. The City currently maintains a TIF District that will enable some of the improvements contemplated. Additional funding sources including assessments to existing property/business owners, as well as, future development will also be required. Hennepin County will also need to participate in funding anticipated Transportation improvements. TIF funds will help ensure economic feasibility in redevelopment areas where acquisition costs increase overall project costs. The infrastructure projects were looked at in three components: • Sanitary Sewer and Water Supply • Storm Water Control • Transportation The attached conceptual graphic provides additional detail describing these systems. Sanitary Sewer and Water Supply The existing downtown area is served by on -site wastewater treatment systems. These include drain fields, mounds, and holding tanks. These systems will need to be upgraded for future improvements and redevelopment. The Comprehensive Plan contemplates using a centralized collection system and conveying the wastewater to the MCES Elm Creek Interceptor in Maple Grove. The existing downtown area is served primarily by wells /individual water supply systems. Redevelopment and the resulting higher intensity water users will require improved water systems. The City must complete a Water Supply Plan and evaluate the most efficient method to meet these water supply requirements. The following cost estimate assumes that a trunk water main will be constructed from the Maple Grove system to supply the downtown area. A 300,000 gallon water tower will also be constructed downtown to provide adequate water pressure and fire protection. Sanitary Sewer Wastewater Lift Station in the City Park $120,000 6" Force Main to the Elm Creek Interceptor $594,000 Total Trunk Facilities $714,000 Lateral Sewer Construction $500,000 Street Reconstruction (50% of total cost) $200,000 City of Corcoran, Minnesota Article II — Tax Increment Financing Plan NORTHLAND 0 SECURITIES Lateral Sewer Facilities $700,000 Total Sanitary Sewer Costs $1,414,000 Water Supply 12" Trunk water main from Maple Grove $494,000 Water Tower (300,000 gallon) $720,000 Land for Water Tower (60,000 SF) $90,000 Total Trunk Facilities $1,304,000 Lateral Water Main Construction $300,000 Street Reconstruction (50% of total cost) $200,000 Later Water Main Facilities $500,000 Total Water Supply Costs $1,804,000 Total Sanitary Sewer and Water Supply Costs $3,218,000 This estimate will be further defined with the completion of a Comprehensive Sanitary Sewer Plan and Water Supply Plan as is required by the Metropolitan Council. It is anticipated that some of these costs will be assessed to benefiting properties including new development and redeveloping areas. TIF funds will assist in limiting assessments, particularly in redevelopment areas. Storm Water The Downtown area is part of the Elm Creek Watershed. Redevelopment of this area will require storm water improvements. The completion of a Surface Water Management Plan will assist in identifying appropriate strategies. This estimate assumes that an additional storm water pond will be constructed near the existing regional storm water pond for the area. This ponding location was identified in the Feasibility study for the Downtown drainage ditch. Construct Storm water pond and outlet $82,000 Construct Storm sewer system in downtown area $50,000 Land for Pond (30,000 SF) $30,000 Total Storm Water System Costs $162,000 Transportation Several Transportation improvements will be required as part of the Downtown improvements. Improvements will be required for vehicular and pedestrian traffic. Significant coordination will be required between the City and Hennepin County. Improvements are shown conceptually on the attached graphic. These improvements are based on information in the Comprehensive Plan, as well as, the County Road 10 /County Road 116 Realignment Concept Study completed by the City with Hennepin County in 1997. County Road Improvements City of Corcoran, Minnesota 9 Article II — Tax Increment Financing Plan NORTHLAND SECURITIES Realign/Reconstruct County Road 10 4,000 LF @ $300 /LF $1,200,000 Additional ROW (200,000 SF) $300,000 Construct signal at intersection with Commerce St. $225,000 Realign/Reconstruct County Road 116 4,000 LF @ $300/LF $1,200,000 Additional ROW (220,000 SF) $330,000 Pedestrian Underpass $275,000 Construct Signal at CR 10/116 intersection $300,000 Total Downtown County Road Improvements $3,830,000 Local Road Improvements Realign Commerce Street (750 LF @ $ISO/LF) $112,500 Additional ROW (20,000 SF) $40,000 Reconstruct Frontage Road along County Road 116 $300,000 (2,000 LF @ $150/LF) 75th Avenue Connection with County Road 116 (300 LF @ $150 /1,F) $45,000 Additional ROW (30,000 SF) $45,000 Total Local Road Improvements $542,500 Other County Road Improvements The City has also determined that significant investment will need to be made in county roads on the west side of the City including, but not limited to County Road 19. These improvements will be necessary to encourage, enhance, and support future economic development along the County Road 19 corridor. The Comprehensive Plan identifies other significant County Road realignments as part of the Downtown Area. County Road 10 will be realigned to Meister Road and County Road 50 will be realigned to Larkin Road The intent of these improvements is to enhance the redevelopment characteristics of the downtown area. Realign County Road 10 to Meister Road (5,500 LF @ $250/1,F) $1,375,000 Construct Signal at County Road 116 $300,000 Additional ROW (300,000 SF) $300,000 Realign County Road 50 to Larkin Road (10,500 LF @ $250 /LF) $2,626,000 Construct Signal at County Road 116 $300,000 Additional ROW (450,000 SF) $450,000 City of Corcoran, Minnesota 10 Article H— Tax Increment Financing Plan NORTHLAND 0 sEcu R IT I ES Total Other County Road Improvements $5,351,000 Total Transportation Improvements $9,723,500 Other Improvements Other Improvements such as pedestrian trails, bus stops and shelters, etc. will also be required as part of the redevelopment of the downtown area. Improvements could also be considered to the adjacent public park and recreational land. These items were not included as part of the estimate. Acquiring Properties for Redevelopment Certain properties will have to be acquired in their entirety. These properties are shown on the attached graphic. The cost of acquiring these properties is not estimated herein. See Also the Comprehensive Plan of the City. 4. Also, see Part I, Section E of this report. D. Description of Property in the Tax Increment Financing District The tax increment financing district encompasses the parcels identified in Appendix B -135, all of which are located within the redevelopment district as modified by this Modification No. 4 (described in Part I, Paragraph C and depicted in Appendix A2). No Parcels have been added as part of this Modification No. 4. E. Classification of the Tax Increment Financing District The City Council of the City of Corcoran, Minnesota, in determining the need for a tax increment financing district in accordance with Minnesota Statutes, Sections 469.174 to 469.179, inclusive, found that the district established was a redevelopment district pursuant to Minnesota Statutes Section 469.174, Subdivision 10. It had been determined that 19 of the parcels in the district (70 percent) were occupied by buildings, streets, utilities or other improvements and 20 percent of the buildings were structurally substandard and an additional 30 percent of the buildings were found to require substantial renovation or clearance in order to remove such existing conditions as: inadequate street. layout, incompatible uses or land use relationships, overcrowding of buildings on the land, excessive dwelling unit density, obsolete buildings not suitable for improvement or conversion, or other identified hazards to health, safety and general well -being of the community. The 19 structures on the 27 parcels of land constituting the redevelopment district were investigated by consultants. Four of the 19 buildings were deteriorated and structurally substandard to a degree requiring clearance and 6 other structures were found to require substantial renovation in order to remove such existing conditions as: inadequate street layout, incompatible uses or land use relationships, overcrowding of buildings on the land, excessive dwelling unit density, obsolete buildings not suitable for improvement or conversion, or other identified hazards to the health, safety and general well -being of the community. Thus, the tax increment financing district met the— statutory requirements of a redevelopment district and was referred to as a redevelopment tax increment financing district. The parcels that had been used to establish eligibility as a redevelopment tax increment financing district are listed below: Property Identification Number: City of Corcoran, Minnesota 11 Article II — Tax Increment Financing Plan 18- 119 -23 -21 -0001 18- 119 -23 -21 -0002 18- 119 -23 -21 -0003 7- 119 -23 -42 -0001 23- 119 -23 -43 -0006 23- 119 -23 -43 -0005 23- 119 -23 -44 -0010 23- 119 -23 -44 -0011 23- 119 -23 -44 -0007 23- 119 -23 -43 -0003 23- 119 -23 -43 -0004 26- 119 -23 -12 -0003 26- 119 -23 -12 -0002 26- 119 -23 -12 -0001 26- 119 -23 -11 -0009 26- 119 -23 -11 -0008 26- 119 -23 -11 -0007 26- 119 -23 -11 -0005 26- 119 -23 -11 -0020 26- 119 -23 -11 -0029 26- 119 -23 -11 -0032 26- 119 -23 -11 -0033 26- 119 -23 -11 -0039 26- 119 -23 -11 -0040 26- 119 -23 -14 -0019 2- 119 -23 -12 -0001 2- 119 -23 -13 -0001 NORTHLAND 0 SECURITIES Since no parcels have been added as part of this Modification No. 1, Modification No. 2 or Modification No. 3, the classification as a redevelopment project has not changed. F. Parcels in Acquisition 1. Properties identified for acquisition will be acquired by the City in order to accomplish one or more of the following: remove, prevent, or reduce blight, blighting factors, causes of blight, or the spread of blight and deterioration; to eliminate unhealthful, unsafe, and unsanitary structures and conditions; reduce traffic hazards; provide land for needed public streets, utilities, and recreational facilities; remove incompatible land use, eliminate obsolete or detrimental uses; assemble land for redevelopment; carry out clearance and/or redevelopment to accomplish the uses and objectives set forth in this plan. Properties so identified for acquisition as part of this Modification No.l include the following: The NW 1/4 of the SW 1/4 and that part of the SW 1/4 of the NW 1/4 lying S of the N 230 feet thereof except road and the following described tract of land: The West 339.11 feet of the Southwest Quarter of the Northwest Quarter of Section 24, Township 119, Range 23, Hennepin County, Minnesota lying south of the following described line: commencing at the southwest corner of said Southwest Quarter of the Northwest Quarter; thence north along the west line of said Southwest Quarter of the Northwest Quarter, a distance of 382.47 feet to the point of beginning of the line to be described; thence easterly deflecting 77 City of Corcoran, Minnesota 12 Article 1I— Tax Increment Financing Plan NORTH LAN UIf SEC URITIES degrees 18 minutes 13 seconds right, a distance of 347.61 feet to the east line of said West 339.11 feet of the Southwest Quarter of the Northwest Quarter and said line there terminating. All in Section 24, T.119,R.23, Hennepin County, State of Minnesota. Properties so identified for acquisition as part of this Modification No. 3 include the following: 10 -23 -11 18 -21 -01 18 -21 -02 18 -21 -03 18 -21 -05 18 -21 -06 18 -21 -07 18 -21 -15 18 -12 -01 18 -12 -02 18 -12 -03 23 -42 -03 23 -43 -03 23 -43 -04 23 -43 -05 23 -43 -06 23 -44 -10 23 -44 -11 26 -12 -01 26 -12 -02 26 -12 -03 26 -12 -04 26 -12 -04 26 -12 -05 26 -12.17 26 -11 -07 26 -11 -08 26 -11 -09 24 -11 -25 The City will reimburse itself for recreation land acquisition from the annual collection of tax increments (see Budget). 2. Conditions under which properties not designated to be acquired may be acquired. The City may acquire property by direct purchase from willing sellers in order to achieve the objectives of this tax increment financing plan. Such acquisitions will be undertaken only when there is assurance of funding to finance the acquisition and related costs. G. Estimate of Costs City of Corcoran, Minnesota 13 Article JI— Tax Increment Financing Plan NORTH LAN D®sECURITIES The estimate of public costs associated with the tax increment financing redevelopment district are outlined in the line item budgets in Appendix F. H. Estimated Amount of Loan/Bonded Indebtedness An estimate of the amount of bonded indebtedness for development is estimated to be in the range of $1,000,000 (depending upon the tax capacity rate used in the calculation of tax increments). The tern of the issue is 15 years not including capitalized interest with an anticipated interest rate of 8 %. Modification No.1 will expand the bonding capacity of this tax increment district by $500,000 in anticipation of growth on existing replatted tax increment parcels. See Appendix "E ". Modification No.2 estimated bonding capacity based on pay 1993 tax increments. See Appendix "E" Modification No.3 will expand the bonding capacity of this tax increment district by $6,025,000 in anticipation of growth in the Municipal Development District. See Appendix "E ". Modification No. 3 estimated bonding capacity based on pay 2002 tax increments. See Appendix "E, I. Sources of Revenue The primary source of revenue to be used to finance public costs associated with the development projects in the municipal development district is tax increment. Tax increment financing refers to a funding technique that utilizes increases in assessed valuation and the property taxes attributed to new development to finance, or assist in the financing of public development costs. The redevelopment project at full assessment is expected to generate an annual tax increment in excess of $118,000. The estimated sources of revenue, along with the estimated public costs of the TIF District, are itemized and attached as Exhibit F. This includes the current and amended budget. Such costs are eligible for reimbursement from tax increments, and other listed sources of revenue from the TIF District. The City reserves the right to administratively adjust the amount of any of the items in Exhibit F or to incorporate additional eligible items, so long as the total estimated public cost (uses) is not increased. The City 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 City 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. In addition to tax increment, a Community Development Block Grant (CDBG) may also be available to combine with tax increment. J. Original Tax Capacity Value City of Corcoran, Minnesota 14 Article II— Tax Increment Financing Plan NORTHL1NbJO5ECURIh7ES Pursuant to Minnesota Statutes, Sections 469.175, Subdivision 1 and Section 469.177, Subdivision 1, the Original Tax Capacity Value (OTC) for the City of Corcoran tax increment financing redevelopment district is based on the value placed on the property by the County Assessor in 1986 and adjusted for pay 1993. (Also refer to Footnote 2, Appendix Q. This adjusted tax capacity value for the project is $8,945. Each year the Office of the County Auditor will measure the amount of increase or decrease in the total tax capacity value of the tax increment redevelopment district to calculate the tax increment payable to the Corcoran redevelopment district fund. In any year in which there is an increase in total tax capacity valuation in the tax increment redevelopment district above the adjusted original tax capacity value, a tax increment will be payable. In any year in which the total tax capacity valuation in the tax increment financing redevelopment district declines below the original tax capacity valuation, no tax capacity valuation will be captured and no tax increment will be payable. The County Auditor shall certify in each year after the date the Original Tax Capacity Value was certified, the amount the OTC has increased or decreased as a result of: 1. change in tax exempt status of property; 2. reduction or enlargement of the geographic boundaries of the district; 3. change due to stipulations, adjustments, negotiated court- ordered abatements or Legislature. K. Estimated Captured Tax Capacity Value Pursuant to Minnesota Statutes, Section 469.175, Subdivision 1 and Minnesota Statutes, Section 469.177, Subdivision 2, the estimated pay 1993 Captured Tax Capacity Value (CTC) of the tax increment financing redevelopment district resulting will annually approximate $100,000. This amount will be captured for up to twenty -five years or until the project debt is retired. The City requests 100- percent of the available increase in tax capacity value for repayment of debt and current expenditures. L. Duration of the District Pursuant to Minnesota Statutes, Section 469.176, Subdivision 1, the duration of the tax increment district within the Development District must be indicated within the finance plan. The duration of the tax increment district is 25 years from the date of receipt of the first tax increment. Thus, it is estimated that the tax increment district, including any modifications to the finance plan for subsequent phases or other changes, would terminate in year 2013. Tax Increment Financing (Redevelopment) District No. 1 could currently be decertified, if not for the additional public costs identified in Sections C, F & G. The City has determined that these future public costs could not be undertaken but for the use of outside revenue sources including, but not limited to, both existing and future tax increments from Tax Increment Financing (Redevelopment) District No. 1. The City reserves the right to leave the TIF District open through the earlier of the statutory decertification year of 2013, or such time that reimbursable costs, as identified in this TIF Plan, have been paid in full. M. Estimated Impact on Other Taxing Jurisdictions The impact of the loss of tax dollars represented as tax increments is estimated below for each taxing jurisdiction. This estimate is based on the existing redevelopment proposals and does not City of Corcoran, Minnesota 15 Article II — Tax Increment Financing Plan NORTHLAND 0 SEC U it ITI ES include the possible tax increments derived from any other future development, capacity rate changes, or inflation factors. Tests: The estimated impact on other taxing jurisdictions assumes construction would have occurred without the creation of Tax Increment Financing District No.l. If the construction is a result of tax increment financing, the impact is $0 to other entities. Notwithstanding the fact that the fiscal impact on the other taxing jurisdictions is $0 due to the fact that the financing would not have occurred without the assistance of the City, the following estimated impact of Tax Increment Financing District No.I would be as follows if Test No. t (the "but for" test) was not met. BASED ON SCHOOL DISTRICT NO. 877 Total Tax Capacity Value* Tax Increment Financing District No.I Total $3,970 Modification No.I and 2 (pay 1993) Estimated Pay 1993 Tax Capacity Value of Each Government Body: % of District to Total City of Corcoran $2,515,836 .1578 County of Hennepin $833,996,305 .0005 Corcoran S.D. #877 $1,457,669 .2723 BASED ON SCHOOL DISTRICT NO. 883: Total Tax Capacity Value* Tax Increment Financing District No.I Total $4,975 Modification No.I and 2 (pay 1993) Estimated Pay 1993 Tax Capacity Value of Each Government Body: % of District to Total City of Corcoran $2,515,836 .1977 County of Hennepin $833,996,305 .0006 Corcoran S.D. #883 $1,957,448 .2542 Considering all the districts, it can be seen from the above that the city will have over 99 %, the school district over 99 %, and county over 99% of each respective district available for normal growth of tax base or valuation. Applying the percentage of the total tax capacity rate in 1993 levied by each taxing jurisdiction to the projected tax capacity rate and the estimated tax increment received reveals the annual use of tax dollars for project costs as it effects each taxing jurisdiction as listed in the table below. The finance plan indicates we anticipate a tax increment at build out as follows: BASED ON SCHOOL DISTRICT NO. 877: Captured Tax City of Corcoran, Minnesota 16 Article II — Tax Increment Financing Plan Tax Increment Finance District (Pay 1993) NO RTHLAN D UJISEC U RITZ ES Tax Increment Capacitv Received $ 65,432 $ 77,200 Based on the current tax capacity rate, the estimated taxes received would be as follows for the taxing bodies: Tax Capacity Pay 93 Rate Percent Tax Increment City of Corcoran 17.783 15.07 $11,634 County of Hennepin 35.839 30.38 23,451 School District #877 60.601 52.21 40,309 Other 2.756 2.34 1,806 Total 117.979 100.00 $ 77,200 BASED ON SCHOOL DISTRICT NO. 883: 117.072 100.00 $ 40,770 Captured Tax Tax Increment Capacity Received Tax Increment Finance District (Pay 1993) $ 34,825 $ 40,770 Based on the current tax capacity rate, the estimated taxes received would be as follows for the taxing bodies: Tax Capacity The following tables represent the increased tax capacity rate that would have to be levied to compensate for the use of tax dollars in estimated tax increments for project costs for each taxing jurisdiction. The tax increments derived from the redevelopment project alluded to in the tax increment district would not be available to any of the taxing jurisdictions were it not for public intervention by the City. The increases in tax capacity value due to development will be delayed for application to the tax capacity rate for the duration of the tax increment financing district. This new tax capacity value could eventually permit a tax capacity rate decrease. If it could be assumed that the captured tax capacity value was available for each taxing jurisdiction, the use of tax dollars for project costs represented as tax increments may be determined. This determination is facilitated by estimating how much the tax capacity rate for property outside of the tax increment financing district would have to be adjusted to compensate for the temporary use of. new development tax dollars in each taxing jurisdiction. BASED ON SCHOOL DISTRICT NO. 877: Adjusted Tax ** Adjusted Tax Tax City of Corcoran, Minnesota 17 Pay 93 Rate Percent Tax Increment City of Corcoran 17.783 15.19 $6,195 County of Hennepin 35.839 30.61 12,480 School District #883 60.694 51.84 21,136 Other 2.756 2.35 959 Total 117.072 100.00 $ 40,770 The following tables represent the increased tax capacity rate that would have to be levied to compensate for the use of tax dollars in estimated tax increments for project costs for each taxing jurisdiction. The tax increments derived from the redevelopment project alluded to in the tax increment district would not be available to any of the taxing jurisdictions were it not for public intervention by the City. The increases in tax capacity value due to development will be delayed for application to the tax capacity rate for the duration of the tax increment financing district. This new tax capacity value could eventually permit a tax capacity rate decrease. If it could be assumed that the captured tax capacity value was available for each taxing jurisdiction, the use of tax dollars for project costs represented as tax increments may be determined. This determination is facilitated by estimating how much the tax capacity rate for property outside of the tax increment financing district would have to be adjusted to compensate for the temporary use of. new development tax dollars in each taxing jurisdiction. BASED ON SCHOOL DISTRICT NO. 877: Adjusted Tax ** Adjusted Tax Tax City of Corcoran, Minnesota 17 Article II — Tax Increment Financing Plan NORTHLAND 0 SECURITIES The total tax capacity value for Tax Increment Financing District No.1 is based on 1992/1993 property values. (Also refer to Footnote 2, Appendix C.) ** Tax Increment District tax capacity valuation subtracted. Modification No. 3 The City believes that this TIF Plan modification will have no practical impact on other taxing jurisdictions. The modification does not change the boundaries of TIF District No. I or increase the expected captured tax capacity in the TIF District. Rather, the modification simply re- directs the use of tax increment currently being collected from the TIF District in order to promote development and redevelopment goals. The City expects that proposed expenditures will stimulate development in various areas of the Development District as modified, most of which is expected to occur outside any TIF District. Such development will benefit all taxing jurisdictions by increasing the tax base, which increase will not be captured in a TIF District. If the TIF Plan modification were not approved, it is possible that outstanding bonds and obligations could be fully repaid, and the TIF District could be decertified, prior to the maximum duration of the TIF District. However, the City believes that the development to be stimulated as a result of the activities described in this modification will create more market value in the long ran, resulting in a greater net benefit to all taxing jurisdictions upon termination of the TIF District. Exhibit C shows the estimated tax capacity and increment generated for taxes payable 2002. The tables included below show the estimated impact on other taxing jurisdictions, for each of the Independent School Districts within the TIF District, if the maximum projected retained captured net tax capacity of the TIF District were made available. These estimated impacts are hypothetical only, as the retained captured net tax capacity is not actually available to the other taxing jurisdictions. City of Corcoran, Minnesota 18 Cerra acity Value Capacity Rate Increment City of Corcoran $2,511,866 .4631 $11,634 County of Hennepin $833,992,335 .0028 23,451 School District #877 $1,453,699 2.7728 40,309 BASED ON SCHOOL DISTRICT NO. 883: Adjusted Tax ** Adjusted Tax Tax Capacity Value Capacity Rate Increment City of Corcoran $2,510,861 .2467 $6,195 County of Hennepin $833,991,330 .0015 12,480 School District #883 $1,952,473 1.0825 21,136 The total tax capacity value for Tax Increment Financing District No.1 is based on 1992/1993 property values. (Also refer to Footnote 2, Appendix C.) ** Tax Increment District tax capacity valuation subtracted. Modification No. 3 The City believes that this TIF Plan modification will have no practical impact on other taxing jurisdictions. The modification does not change the boundaries of TIF District No. I or increase the expected captured tax capacity in the TIF District. Rather, the modification simply re- directs the use of tax increment currently being collected from the TIF District in order to promote development and redevelopment goals. The City expects that proposed expenditures will stimulate development in various areas of the Development District as modified, most of which is expected to occur outside any TIF District. Such development will benefit all taxing jurisdictions by increasing the tax base, which increase will not be captured in a TIF District. If the TIF Plan modification were not approved, it is possible that outstanding bonds and obligations could be fully repaid, and the TIF District could be decertified, prior to the maximum duration of the TIF District. However, the City believes that the development to be stimulated as a result of the activities described in this modification will create more market value in the long ran, resulting in a greater net benefit to all taxing jurisdictions upon termination of the TIF District. Exhibit C shows the estimated tax capacity and increment generated for taxes payable 2002. The tables included below show the estimated impact on other taxing jurisdictions, for each of the Independent School Districts within the TIF District, if the maximum projected retained captured net tax capacity of the TIF District were made available. These estimated impacts are hypothetical only, as the retained captured net tax capacity is not actually available to the other taxing jurisdictions. City of Corcoran, Minnesota 18 Article II — Tax Increment Financing Plan NO RTH LAN D UNSEC U R I T I ES Estimated Impact on Other Taxing Jurisdictions Based on Indpendent School District No. 877 City off Hennepin I.S.D. #977 Corcoran County Buffalo DA-tr Total Total Taxable NTC 9001/1002 3 75 621 816 80-4,010 2 350,934 hA 842 ,910,565 Proiected Retained NTC 68 666 68 666 69.666 68 666 Hypothetical New NTC 3„8,25 ?87 836 871,676 2.419,600 HAI Rxis ing Local Tax 2001/2002 34.478% 50.409% 32,049% 5.845% 122.781°% Hypothetical Adi Local Tax Rate 33.859% 50.405% 31,139% 5.845°% 121.248% Difference 0,619% 4.004% 0 910% NA 1.533°% Hypothetical Taxes on Retained NTC 23.254 34.611 21,382 NA 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 1.533% (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. (2) The impact on these taxing jurisdictions is negligible since they represent only 0.048% of the total tax rate. Based on Independent School District No. City 0 Hennepin T.S.D. #883 CDX.QaM r.r :r , • r Total Taxable NTC 2001/2002 3,756,621 836 803 010 3 310 087 NA &43-869-71 Projected Retained NTC 38406 38,406 38-406 38406 Hypothetical New NTC 3,795 027 836 841 416 3 348493 NA Existing Local 11 00 1419' Hypothetical Adj. Local - 34,129% 504407% ••' 5,845% 142,527% Difference 1 '•' 0,002% 0,605% 0,956% HXpothetical Taxes on Retained NTC 13 109 19359 20 027 NA 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 salve amount of taxes City of Corcoran, Minnesota 19 Article H— Tax Increment Financing Plan NORTH LAN DVPSECURITtES for each taxing jurisdiction. In such a case, the total local tax rate would decrease by 0.956% (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. (2) The impact on these taxing jurisdictions is negligible since they represent only 0.041% of the total tax rate. N. Modifications of the Tax Increment Financing District In accordance with Minnesota Statutes, Section 469.175, Subdivision 4, any reduction or enlargement of the geographic area of the project or tax increment financing district, increase in amount of bonded indebtedness to be incurred, including a determination or capitalize interest on debt if that determination was not a part of the original plan, or to increase or decrease the amount of interest on the debt to be capitalized, increase in the portion of the captured tax capacity value to be retained by the City, increase in total estimated tax increment expenditures or designation of additional property to be acquired by the City shall be approved upon the notice and after the discussion, public hearing and findings required for approval of the original plan. The geographic area of a tax increment financing district may be reduced, but shall not be enlarged after five years following the date of certification of the original tax capacity value by the county auditor. The tax increment financing redevelopment district therefore could have been expanded up to 1992. O. Limitation on Administrative Expenses In accordance with Minnesota Statutes, Section 469.174, Subdivision 14 and Minnesota Statutes, Section 469.174, Subdivision 3, administrative expenses means all expenditures of a City other than amounts paid for the purchase of land or amounts paid to contractors or others providing materials and services, including architectural and engineering services, directly connected with the physical development of the real property in the district, relocation benefits paid to or services provided for persons residing or businesses located in the district or amounts used to pay interest on, fund a reserve for, or sell at a discount bonds issued pursuant to Section 469.178. Administrative expenses includes amounts paid for services provided by bond counsel, fiscal consultants, and planning or economic development consultants. No tax increment shall be used to pay any administrative expenses for a project which exceed ten percent of the total tax increment expenditures authorized by the tax increment financing plan or the total tax increment expenditures for the project, whichever is less. City of Corcoran, Minnesota 20 Article H— Tax Increment Financing Plan NORTH LAN DVPsECURrrIES Limitation on Duration of Tax Increment Financing Districts Pursuant to Minnesota Statutes, Section 469.176, Subdivision 1, "no tax increment shall be paid to an authority three years from the date of certification by the County Auditor unless within the three -year period (1) bonds have been issued pursuant to Section 469.178 or in aid of a project pursuant to any other law, except revenue bonds issued pursuant to r \linnesota Statutes, Sections 469.152 to 469.165, prior to the effective date of the Act; or (2) the authority has acquired property within the district; or (3) the authority has constructed or caused to be constructed public improvements within the district..." The City must therefore issue bonds, or acquire property, or construct or cause public improvements to be constructed by 1990 or the Office of the County Auditor may dissolve the tax increment financing district. Q. Limitation on Qualification of Property in Tax Increment District Not Subject to Improvement Pursuant to Minnesota Statutes Section 469.176, Subdivision 6, "if, after four years from the date of certification of the original tax capacity value of the tax increment financing district..., no demolition, rehabilitation or renovation of parcel or other site preparation including improvement of a street adjacent to a property but not installation of utility service including sewer or water systems, has been commenced on a parcel located within a tax increment financing district by the City or by the owner of the parcel in accordance with the tax increment financing plan, no additional tax increment may be taken from that parcel and the original tax capacity value of that parcel shall be excluded from the original tax capacity value of the tax increment financing district. If the City or the owner of the parcel subsequently commences demolition, rehabilitation or renovation or other site preparation on that parcel including improvement of a street adjacent to that parcel, in accordance with the tax increment financing plan, the City shall certify to the county auditor in the annual disclosure report that the activity has commenced. The county auditor shall certify the tax capacity value thereof as most recently certified by the commissioner of revenue and add it to the original tax capacity value of the tax increment financing district. R. Limitation on the Use of Tax Increment All revenues derived from tax increment shall be used in accordance with the tax increment financing plan. The revenues shall be used to finance or otherwise pay public redevelopment costs pursuant to Minnesota Statutes, Chapter 469. These revenues shall not be used to circumvent existing levy limit law. No revenues derived from tax increment shall be used for the construction or renovation of a municipal owned building used primarily and regularly for conducting the business of the municipality; this provision shall not prohibit the use of revenues derived from tax increments for the construction or renovation of a parking structure, a commons area used as a public park or a facility used for social recreational or conference purposes and not primarily or conducting the business of the municipality. S. Notification of Prior Planned Improvements Pursuant to Minnesota Statutes Section 469.177, Subdivision 4, the City has reviewed and searched the properties to be included in the tax increment financing redevelopment district and found no properties for which building permits have been issued during the 18 months immediately preceding approval of the tax increment financing plan by the City. If the building permit had been issued within the 18 month period preceding approval of the tax increment financing plan by the City, the County Auditor shall increase the original tax capacity value of the district by the tax capacity valuation of the improvements for which the building permit was issued. City of Corcoran, Minnesota 21 Article II — Tax Increment Financing Plan T U. V. X. Excess Tax Increments NORTHLAND 0 SEC V, RITI ES Pursuant to Minnesota Statutes, Section 469.176, Subdivision 2, in any year in which the tax increment exceeds the amount necessary to pay the costs authorized by the tax increment plan, including the amount necessary to cancel any tax levy as provided in Minnesota Statutes, Section 475.6 1, Subdivision 3, the City shall use the excess amount to: 1, prepay the outstanding bonds; 2. discharge the pledge of tax increment therefore; 3. pay into an escrow account dedicated to the payment of such bond; Requirement for Agreements with the Developer Pursuant to Minnesota Statutes Section 469.176, Subdivision 5, no more than 25 percent by acreage of the property to be acquired by the City in the redevelopment district shall be owned by the City as a result of acquisition with the proceeds of bonds issued pursuant to Section 469.178 without the City having prior to acquisition in excess of 25 percent of the acreage, concluded an agreement for the development of the property acquired and which provides recourse for the City should the development not be completed. The City will acquire a blighted parcel with undesignated City funds until the parcel is marketed. Assessment Agreements Pursuant to Minnesota Statutes, Section 469.177, Subdivision 8, the City may, upon entering into a development agreement pursuant to Minnesota Statutes Section 469.176, Subdivision 5, enter into an agreement in recordable form with the developer of property within the tax increment financing district which establishes a minimum market value of the land and completed improvements for the duration of the tax increment redevelopment district. The tax capacity agreement shall be presented to the county assessor who shall review the plans and specifications for the improvements to be constructed, review the market value previously assigned to the land upon which the improvements are to be constructed and so long as the minimum market value contained in the tax capacity agreement appears in the judgment of the assessor, to be a reasonable estimate, the assessor may certify the minimum market value agreement. Administration of the Tax Increment Financing Redevelopment District and Maintenance of the Tax Increment Account Administration of the tax increment financing redevelopment district will be handled by the Office of the City Clerk- Treasurer - Administrator. The tax increment received as a result of increases in the tax capacity value of the tax increment financing redevelopment district will be maintained in a special account separate from all other municipal accounts and expended only upon sanctioned municipal activities identified in the finance plan. Annual Disclosure Requirements i. The original tax eapaeity aloe cfthe aistri^ . City of Corcoran, Minnesota 22 Article II — Tax Increment Financing Plan NORTHLAND 0 SECURITIES 2. The eapt,aetid tax eapao.'ty —value of the district, inel ding the .......»nt of a ty eaptured tax eapaeky ..1.. shared with ether twEiag dist.iete 4 n tl p «epe...i..,.period and £,.« 4,..1..rat:e., e£ the ,liskiet , ... ,. the e .t 1 iAgetea under L, ent fina.eing plan, and tl e a .el a ...t a e...led £e« at leeet tl, fellawiffg 3 Fer sold to developers the total vest e£ the et4y to the authority e..,1 the �°P�TFe developers, Y «vY J J aid by th0 .]0..01....8«. 6. Tl... amBuat of tax _.._ »t obligations, ethe« gian t4e_e 'repet4e.i inde« elause (3) that were .ed eft behalf e£__:_ ..te efAitie.. £4 r eilae., lee..ted in the distriet. :.: _ . �re�r�s�r�srtessreEn The State Auditor shall enforce the provisions of the TIF Act and shall have full responsibility for financial and compliance auditing of the City's use of tax increment financing. On or before August 1 of each year, the Authority must annually submit to the State Auditor, County Auditor and to the governing body of the municipality a report which shall: (1) provide full disclosure of the sources and uses of public funds in the TIF District; (2) permit comparison and reconciliation of the accounts and financial reports; (3) permit auditing of the funds expended on behalf of the TIF District; and (4) be consistent with generally accepted accounting principles. The report shall include, among other items, the following information: (1) the original net tax capacity of the district and any subdistrict under 469.177, subdivision 1; (2) the net tax capacity for the reporting period of the district and any subdistrict; City of Corcoran, Minnesota 23 Article II — Tax Increment Financing Plan NO RTHLAN U VOSECU R I T Z ES (3) the captured net tax capacity of the district; (4) any fiscal disparity deduction from the captured net tax capacity under section 469.177, subdivision 3; (5) the captured net tax capacity retained for tax increment financing under 469.177, subdivision 2, paragraph (a), clause (1); (6) any captured net tax capacity distributed among affected taxing districts under 469.177, subdivision 2, paragraph (a), clause (2); (7) the type of district; (8) the date the municipality approved the tax increment financing plan and the date of approval of any modification of the tax increment financing plan, the approval of which requires notice, discussion, a public hearing, and findings under subdivision 4, paragraph (a); (9) the date the authority first requested certification of the original net tax capacity of the district and the date of request for certification regarding any parcel added to the district; (10) the date the county auditor first certified the original net tax capacity of the district and the date of certification of the original net tax capacity of any parcel added to the district; (11) the month and year in which the authority has received or anticipates it will receive the first increment from the district; (12) the date the district must be decertified; (13) for the reporting period and prior years of the district, the actual amount received from, at least, the following categories: a) tax increments paid by the captured net tax capacity retained for tax increment financing under section 469.177, subdivision 2, paragraph (a), clause (1), but excluding any excess taxes; b) tax increments that are interest or other investment earnings on or from tax increments; C) tax increments that are proceeds from the sale or lease of property, tangible or intangible, purchased by the authority with tax increments; d) tax increments that are repayments of loans or other advances made by the authority with tax increments; e) bond or loan proceeds; f) special assessments; g) grants; and h) transfers from funds not exclusively associated with the district; (14) for the reporting period and for the prior years of the district, the amount budgeted under the tax increment financing plan, and the actual amount expended for, at least, the following categories: City of Corcoran, Minnesota 24 Article IT- Tax Increment Financing Plan NORTHLANUqPseZURI-riEs a) acquisition of land and buildings through condemnation or purchase; b) site improvements or preparation costs; C) installation of public utilities, parking facilities, streets, roads, sidewalks, or other similar public improvements; d) administrative costs, including the allocated cost of the Authority; and e) public park facilities, facilities for social, recreational, or conference purposes, or other similar public improvements; and f) transfers to funds not exclusively associated with the district; (15) for properties sold to developers, the total cost of the property to the Authority and the price paid by the developer; (16) the amount of any payments and the value of in -kind benefits, such as physical improvements and the use of building space, that are paid or financed with tax increments and are provided to another governmental unit other than the municipality during the reporting period; (17) the amount of any payments for activities and improvements located outside of the district that are paid for or financed with tax increments; (18) the amount of payments of principal and interest that are made during the reporting period on any non - defeased: a) general obligation tax increment financing bonds; b) other tax increment financing bonds; and C) notes and pay -as- you -go contracts; (19) the principal amount, at the end of the reporting period, of any non - defeased: a) general obligation tax increment financing bonds; b) other tax increment financing bonds; and C) notes and pay -as- you -go contracts; (20) the amount of principal and interest payments that are due for the current calendar year on any non - defeased: a) general obligation tax increment financing bonds; b) other tax increment financing bonds; and C) notes and pay -as- you -go contracts; (21) if the fiscal disparities contribution under chapter 276A or 473F for the district is computed under section 469.177, subdivision 3, paragraph (a). the amount of increased property taxes imposed on other properties in the municipality that approved the tax increment financing plan as a result of the fiscal disparities contribution; City of Corcoran, Minnesota 25 Article II — Tax Increment Financing Plan NO RTH LAIN UIMSECU RITI ES (22) whether the tax increment financing plan or other governing document permits increment revenues to be expended; a) to pay bonds, the proceeds of which were or may be expended on activities outside of the district; b) for deposit into a common bond fund from which money may be expended on activities located outside of the district; or C) to otherwise finance activities located outside of the tax increment financing district; and (23) any additional information the state auditor may require. The Authority must also annually publish in a newspaper of general circulation in the City an annual statement for each tax increment financing district showing: (1) the original net tax capacity of the district and any subdistrict under 469.177, subdivision 1; (2) the net tax capacity for the reporting period of the district and any subdistrict; (3) the captured net tax capacity of the district; (4) the month and year in which the authority has received or anticipates it will receive the first increment from the district; (5) the date the district must be decertified; (6) the amount of principal and interest payments that are due for the current calendar year on any non - defeased obligations; (7) if the fiscal disparities contribution under chapter 276A or 473F for the district is computed under section 469.177, subdivision 3, paragraph (a), the amount of increased property taxes imposed on other properties in the municipality that approved the tax increment financing plan as a result of the fiscal disparities contribution; (8) the amounts of tax increment received and expended in the reporting period; (9) and any additional information the authority deems necessary. The annual statement must inform readers that additional information regarding each district may be obtained from the authority, and must explain how the additional information may be requested. The Authority must publish the annual statement for a year no later than August 15 of the next year. The authority must identify the newspaper of general circulation in the municipality to which the annual statement has been or will be submitted for publication and provide a copy of the annual statement to the county board, county auditor, the school board, the state auditor, and the governing body of the municipality on or before August 1 of the year in which the statement must be published. The reporting and disclosure requirements outlined in this section shall begin with the year the district was certified, and shall end in the year in which both the district has been decertified and all tax increments have been spent or returned to the county for redistribution. Failure to meet these requirements, as determined by the State Auditors Office, may result in suspension of distribution of tax increment. City of Corcoran, Minnesota 26 Article H— Tax Increment Financing Plan NORTHLANDJOsECURr"rIHs Y. Assumptions It was necessary to make certain assumptions regarding income, costs and timing of the tax increment redevelopment district. These assumptions are based on discussions with City staff and City planning consultants. Z. Municipal Findings Pursuant to Minnesota Statutes, Section 469.175, Subdivision 3, before or at the time of approval of the tax increment financing plan, the municipality shall make the following findings and shall set forth in writing the reasons and supporting facts for each determination: Tax Increment District Financing No.I is a redevelopment district pursuant to Minnesota Statutes, Section 469.174, Subdivision 10(a)(2) since it has been determined that 19 of the parcels in the district (70 percent) are occupied by buildings, streets, utilities or other improvements and 20 percent of the buildings are structurally substandard and an additional 30 percent of the buildings are found to require substantial renovation or clearance in order to remove such existing conditions as: inadequate street layout, incompatible uses or land use relationships, overcrowding of buildings on the land, excessive dwelling unit density, obsolete buildings not suitable for improvement or conversion, or other identified hazards to health, safety and general well -being of the community. The 19 structures on the 27 parcels of land constituting the redevelopment district have been investigated by consultants. Four of the 19 buildings are deteriorated and structurally substandard to a degree requiring clearance and 6 other structures are found to require substantial renovation in order to remove such existing conditions as: inadequate street layout, incompatible uses or land use relationships, overcrowding of buildings on the land, excessive dwelling unit density, obsolete buildings not suitable for improvement or conversion, or other identified hazards to the health, safety and general well -being of the community. 2. The City staff has researched and reviewed the financial costs and sources of revenue for the proposed developments and public improvements addressed by this Plan. Due to the high cost of public improvements required for development and competition for redevelopment projects from neighboring cities, the proposed projects would not be financially feasible without the City's assistance. In addition, the respect for and the prolongation of the health, safety, and general welfare of the community requires City intervention and assistance for the provision of adequate public improvements as well as encouragement of quality development. The proposed redevelopment, in the opinion of the City, 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. Without the use of tax increments as a source of revenue to assist with the financing of the public improvements, the objectives of this Plan for redevelopment in the City would not be met. 3. The tax increment financing plan conforms to the general plan for the development of the City as a whole as it will result in the new and phased construction of commercial /retail projects and encourage future development within the City. 4. The Tax Increment Financing Plan for Tax Increment Financing District No. 1 will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development by private enterprise as it will enable the City to provide the necessary City of Corcoran, Minnesota 27 Article II — Tax Increment Financing Plan NOR'rHLAND 0 SECURITIES public improvements to service the development sites, promote certain community objectives, and, thereby encourage redevelopment in the area. 5. The City has determined that that extensive public costs described in this plan cannot be completed without tax increment financing assistance. The City intends to demonstrate its best efforts in acquiring alternative revenue sources including, but not limited to, State and Federal funding, tax levy, assessments, regional grants, CDBG, and any other available sources of funding. AA. Business Subsidy Compliance The City, or other local government agency, must comply with the business subsidies law when providing business subsidies to private entities. The requirements are specified in Minnesota Statutes, Sections 116J.993 to I I6J.995. The City must adopt business subsidy criteria prior to granting a business subsidy. The requirements include: (2) the grantor must adopt the criteria following a public hearing; (3) the criteria may not be adopted on a case -by -case basis; (4) the criteria must set specific minimum requirements that recipients must meet in order to be eligible to receive business subsidies; (5) the criteria must include a specific wage floor for the wages to be paid for the jobs created. The wage floor may be stated as a specific dollar amount or a formula that will generate a specific dollar amount (6) a grantor may deviate from its criteria by documenting in writing the reason for deviation and attaching a copy of the document to its next annual report to the Department of Trade and Economic Development; (7) a copy of the criteria must be submitted to the Department of Trade and Economic Development. In addition, the City must enter into a subsidy agreement with the recipient of the subsidy. For subsidies greater than $100,000 the grantor must provide public notice and a hearing on the subsidy. The subsidy agreement must include: (1) a description of the subsidy, including the amount and type of subsidy, and type of district if the subsidy is tax increment financing; (2) a statement of the public purpose for the subsidy; (3) measurable, specific, and tangible goals for the subsidy; (4) a description of the financial obligation of the recipient if the goals are not met; (5) a statement of why the subsidy is needed; (6) a commitment to continue operations in the jurisdiction where the subsidy is used for at least five years after the benefit date; (7) the name and address of the parent corporation of the recipient, if any; and (8) a list of all financial assistance by all grantors for the project. City of Corcoran, Minnesota 28 Article IT — Tax Increment Financing Plan NORTHLAND 0 SEC U R ITI ES The statute provides specific requirements in the event the subsidy agreement goals are not met by the recipient. Recipients are required to report to the grantor specific information as defined in statute. The grantor is also required, as specified in the statute, to report specific information annually to the Department of Trade and Economic Development. The City intends to comply with the requirements of Minnesota Statutes 166J.993 to 166J.995. City of Corcoran, Minnesota 29 Appendix A NI ORTHLAND 0 S E C UR I'I'I ES MUNICIPAL DEVELOPMENT DISTRICT NO.1 INCLUDING MODIFICATION NO.1 City of Corcoran, Minnesota 30 Appendiv -41 Aianicipal Development District h of As Modified by Modification No. 3 N k I R7 H I., R 1) 0 At l KI1IF+ City of Corcoran: Minnesota 31 Appendix A2 NORTHLAND 0SECum rJEs Municipal Development District No.1 As Modified by Modification No. 4 City of Corcoran, Minnesota 32 Appendix B— TIFDistrict NORTHLAND qP SECURITIES MAPS TAX INCREMENT FINANCING DISTRICT NO.1 PARCELS (NO PARCELS ADDED AS PART OF MODIFICATION NO. 1, NO.2 AND NO. 3) City of Corcoran, Minnesota 33 AppendixBI — TIFDistrict NoRTHLANuOsECt R'T'Es SEC 2, T. 119, R. 23 City of Corcoran, Minnesota 34 Appendix B2 - TIF District S `h SEC. 23, T. 119, R. 23 NORI-H I. ANU 10 SEC CR I'I'I ES City of Corcoran, Minnesota 35 Appendix B3 — TIF District N '% SEC. 26, T.119, R. 23 e NOR HLAN U 0 SEC C It I TIES A D" D. i J a P- I i A a City of Corcoran, Minnesota 36 Appen did B4 — TIFDistnvrt S.. % SEC. 7. 1.119, k 23 I i RI HI AN 1) 0 F. CI KIiIFS m City of C'orcomn- Minnesota 37 3 Appendix BS — TIF District Q r1 R QV e C7i NORTHLAND 0 SECURITIES N. 1/2 SEC 18, T. 119, R. 23 • • �. fit. 111 3 rt� j 73 City of Corcoran, Minnesota 38 Appendix C APPENDIX C ORIGINAL ESTIMATE OF TAX INCREMENTS Commercial Lumberyard no. square feet (building) x construction cost, psf Estimated Construction Value x Sales Ratio Assessor's Market Value x Tax Capacity Ratio 3.30% of 1st $100,000 5.25% ofAMV balance Total Tax Capacity Value (No Fiscal Disparity Deduction) Automobile Repair Facility No.1 no. square feet x construction cost, psf Estimated Construction Value x Sales Ratio Assessor's Market Value x Tax Capacity Ratio 3.30% of 1st $100,000 5.25% ofAMV balance Total Tax Capacity Value (No Fiscal Disparity Deduction) Automobile Repair Facility No.2 no. square feet (estimated) x construction cost, psf Estimated Construction Value x Sales Ratio Assessor's Market Value x Tax Capacity Ratio Total Tax Capacity Value (No Fiscal Disparity Deduction) City of Corcoran, Minnesota NO R'rH LAN D jPSEC U R I TI ES 10,000 $35 $350,000 85.00% $297,500 $3,300 $10,368 $13,668 3,600 $35 $126,000 93.00% $117,100 $3,300 $892 $4,192 1,500 $35 $52,500 85.00% $44,625 3.30% $1,472 39 Appendix C (continued) NORTHLAND SECURITIES IV. Retail Liquor Store $50 Phase I: $212,500 no. square feet (building) 3,400 x construction cost, psf $50 Estimated Construction Value $170,000 x Sales Ratio 85.00% Assessor's Market Value $144,500 x Tax Capacity Ratio $7,532 3.30% of 1st $100,000 $3,300 5.25% ofAMV balance $1,806 Total Tax Capacity Value $5,106 (No Fiscal Disparity Deduction) $900,000 Phase II no. square feet 4,250 x construction cost, psf $50 Estimated Construction Value $212,500 x Sales Ratio 85.00% Assessor's Market Value $180,625 x Tax Capacity Ratio 3.30% of 1st $100,000 $3,300 5.25 %ofAMV balance $4,232 Total Tax Capacity Value $7,532 (No Fiscal Disparity Deduction) V. Golf Course Estimated Costruction Value Golf Course Green (18 Hole), Phase 1 $900,000 Clubhouse and maintenance building (30,000 square feet), Phase 11 $217,000 Total $1,117,000 x Sales Ratio 85.00% Assessor's Market Value $949,450 x Tax Capacity Ratio 3.30% of 1st $100,000 $3,300 5.25% ofAMV balance $44,596 Total Assessed Value $47,896 (No Fiscal Disparity Deduction) City of Corcoran, Minnesota 40 Appendix C (continued) NORTHLAND JOSECU RITZ ES Modification No. 1 adjustment for undeveloped land replats, inflation and law changes. Total Revised Estimate = $128,357 Less Original Tax Capacity = $2,810 x T. C. Rate Estimated Tax Increment = $125,585 (Pay 1989) Modification No.2 adjustments for growth and tax rates. VII. Estimated Tax Increment = $118,000 (Pay 1993) ' Although the City of Corcoran is divided into five different school districts, only two are impacted as a result of the tax increment financing district. School District No. 877 (Buffalo) and School District No. 883 (Rockford). 2 The original tax capacity value contained within the estimate relates to subdivided land (subdivision filed October, 1986 with Hennepin County). City of Corcoran, Minnesota 41 TOTAL ESTIMATED TAX CAPACITY AND TAX I. $13,668 x 99.678 = $13,487 II. $4,192 x 96.217 = $4,033 III. $1,472 x 96.217 = $1,416 IV. $5,106 x 96.217 = $4,912 $7,532 x 96.217 = $7,247 V. $47,896 x 99.678 = $47,262 $79,866 $78,357 Modification No. 1 adjustment for undeveloped land replats, inflation and law changes. Total Revised Estimate = $128,357 Less Original Tax Capacity = $2,810 x T. C. Rate Estimated Tax Increment = $125,585 (Pay 1989) Modification No.2 adjustments for growth and tax rates. VII. Estimated Tax Increment = $118,000 (Pay 1993) ' Although the City of Corcoran is divided into five different school districts, only two are impacted as a result of the tax increment financing district. School District No. 877 (Buffalo) and School District No. 883 (Rockford). 2 The original tax capacity value contained within the estimate relates to subdivided land (subdivision filed October, 1986 with Hennepin County). City of Corcoran, Minnesota 41 Appendix C (continued) NORTHLAND{ SECU 81.1.1 ES Modification #3 2002 Tax Capacity and Tax Increment Projections Based on Taxing Jurisdiction Attributable to Independent School District No. 877* Year Base Tax Capacity Current Tax Capacity Captured Tax Capacity (ISD 877) Tax Extension Rate 2450* Gross Tax Increment 12/31/2001 812,000 2002 502 138,913 950,913 2003 2002 2,463 71,129 68,666 122.781% 138,913 84,309 2003 2,463 71,129 68,666 122.781% 502 84,309 2004 2,463 71,129 68,666 122.781% 2008 84,309 2005 2,463 71,129 68,666 122.781% 1,923,304 84,309 2006 2,463 71,129 68,666 122.781 % 84,309 2007 2,463 71,129 68,666 122181°/ 502 84,309 2008 2,463 71,129 68,666 122.781% 84,309 2009 2,463 71,129 68,666 122.781% 84,309 2010 2,463 71,129 68,666 122.781% 84,309. 2011 2,463 71,129 68,666 122.781% 84,309 2012 2,463 71,129 68,666 122.781% 84,309 2013 2,463 71,129 68,666 122.781% 84,309 TOTALS 29,556 853,548 823,992 1 1,011,706 Based on Taxing Jurisdiction Attributable to Independent School District No. 883* Year Base Tax Capacity Current Tax Capacity Captured Tax Capacity (ISD 883) Tax Extension Rate 2499* Gross Tax Increment 12/31/2001 812,000 2002 502 138,913 950,913 2003 2002 1,903 40,309 38,406 143.483% 138,913 55,106 2003 1,903 40,309 38,406 143.483% 502 55,106 2004 1,903 40,309 38,406 143.483% 2008 55,106 2005 1,903 40,309 38,406 143.483% 1,923,304 55,106 2006 1,903 40,309 38,406 143.483% 138,913 55,106 2007 1,903 40,309 38,406 143.483% 502 55,106 2008 1,903 40,309 38,406 143.483% 55,106 2009 1,903 40,309 38,406 143.483% 55,106 2010 1,903 40,309 38,406 143.483% 55,106 2011 1,903 40,309 38,406 143.483% 55,106 2012 1,903 40,309 38,406 143.483% 55,106 2013 1,903 40,309 38,406 143.483% 55,106 TOTALS 22,836 483,708 460,872 1 661,273 Year Less: Auditor Deduction Equals: Total Net Tax Increment 2450/2499 Cumulative Surplus/ Deficit 12/31/2001 812,000 2002 502 138,913 950,913 2003 502 138,913 1,089,826 2004 502 138,913 1,228,739 2005 502 138,913 1,367,652 2006 502 138,913 1,506,565 2007 502 138,913 1,645,478 2008 502 138,913 1,784,391 2009 502 138,913 1,923,304 2010 502 138,913 2,062,217 2011 502 138,913 2,201,130 2012 502 138,913 2,340,043 20'3 502 138,913 2,478,956 TOTALS 6,023 1,666,956 City of Corcoran, Minnesota 42 Appendix D APPENDIX D NORTHLAND 0 SECURITIES Original Estimate of Annual Taxes Generated' Tax Capacity Value Annual Taxes Based on Tax Capacity Rate of Development #1 #2 I. Commercial Lumberyard $13,668 $13,487 -- II. Automobile Repair Facility No.1 $4,192 -- $4,033 III. Automobile Repair Facility No.2 $12,635 $1,416 IV. Retail Liquor Store $12,635 -- $12,159 V. Golf Course $47,896 $47,262 -- VI. Other $50,000 -- $50,000 TOTAL $60,749 $67,608 This estimate refers to taxes, not to tax increment. Modification No. 2 Estimate of Pay 1993 Taxes $130,420 City of Corcoran, Minnesota 43 Appendix E NOR HLAN U0 SECCRI TIES APPENDIX E Original Estimate of Bonding Capacity Estimated Tax Increment Development Based on Mill Rate Phase #1 Phase #2 Total Commercial Lumberyard Automobile Repair No.1 Automobile Repair No.2 Retail Liquor Store Golf Course TOTAL Other Development TOTAL TOTAL - MODIFICATION NO.2 $75,585 -- $75,585 x $50,000 $50,000 $75,585 $50,000 $125,585 $118,000 MODIFICATION NO. 2 - BOND CAPACITY ESTIMATE o Based on Current Tax Increment of $118,000 Collectable 1993 (8 %) o Interest = 8% Tax Exempt Term = 15 years o Gross Bond $1,000,000 less capitalized interest $0 o Net Bond Proceeds $1,000,000 City of Corcoran, Minnesota 44 Appendix E (continued) MODIFICATION NO. 3 - BOND CAPACITY ESTIMATE o Based on Current Tax Increment of $140,000 Collectable 2002 (5 %) - 20% of revenue source o Interest = 5% Tax Exempt Term = 11 years NO RTH LAN U®SEC C R I TI ES o Gross Bond $6,025,000 less capitalized interest $0 Less discount $90,375 Less Legal $40,000 o Net Bond Proceeds $5,894,625 City of Corcoran, Minnesota 45 Appendix NORTHLAND 0 sEci RITiES APPENDIX F * Based on $50,000 tax increment payment. Current 1989 tax increment will support a net bond of $190,000 to $200,000. ** Based on an additional $112,000 tax increment payment. City of Corcoran, Minnesota 46 Estimated Budget Mod. 3 Current Other Additional Budget Phases Budget3 Land Acquisition $20,000 - Blighted Parcel $10,000 - Recreational Land $75,000 - Modification No. 3 $4,720,000 Reloca tion /Demoli tion $10,000 Park Development $75,000 Public Improvements $200,000 - Street Lighting $40,000 - Utilities $10,000 - 10/50 Realignment $40,000 - Sanitary Sewer and Water Supply $3,218,000 - Storm Water $162,000 - County Road Improvements $3,830,000 - Local Road Improvements $542,500 - Other County Road $5,351,000 Legal /Bonding $20,000 $25,000 $100,000 Planning /Administrative $25,000 $25,000 $200,000 Recreational Center $500,000 Contingency $30,000 $30,000 Capitalized Interest' $100,000 $150,000 $200,000 Total $435,000* $950,000 ** $18,323,500 * Based on $50,000 tax increment payment. Current 1989 tax increment will support a net bond of $190,000 to $200,000. ** Based on an additional $112,000 tax increment payment. City of Corcoran, Minnesota 46 Appendix F (continued) NoRTH LAN DfOsECu aITi es 1 The estimated budgets are based on two tax capacity rates representing the two school districts impacted as a result of the proposed development located with the Tax Increment Financing District. 2 The amount of capitalized interest will be equal to an amount sufficient to pay interest on the bonds from the date of issue until the date of collection of sufficient tax increment revenue to meet scheduled interest payments when due, but not exceeding 3 years as required by Minnesota Statutes, Chapter 475. Predicting capitalized interest prior to issuance is extremely difficult as it is a function of interest rates, construction schedules and tax timing; therefore, the above figure is only an estimate of capitalized interest and is subject to change. 3 The 3d Column (Mod. 3) is a list of all of the public costs within Municipal Development District No. 1. It is anticipated that only a portion of these costs will be paid from tax increments from TIF (Redevelopment) District No. 1. City of Corcoran, Minnesota 47 DOCUMENT HAS BEEN SCANNJ D CITY OF CORCORAN RESOLUTION NO. 7007 -23 Motion By: Grabowski Seconded By: Thomas RESOLUTION APPROVING MODIFICATION NO.4 TO THE DEVELOPMENT DISTRICT PROGRAM FOR MUNICIPAL DEVELOPMENT DISTRICT NO. 1 AND MODIFICATION NO.4 TO THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 1. BE IT RESOLVED by the City Council ( "Council ") of the City of Corcoran, Minnesota (the "City ") as follows: Section 1. Recitals. 1.01. The City of Corcoran (the "City ") previously created its Development District No. 1 ( "Development District ") and a Development Program (the "Program ") therefor, pursuant to Minnesota Statutes, Sections 469.124 through 469.134 (the "Development District Act"). 1.02. Within the Development District, the City has created Tax Increment Financing District No. I (the "TIF District "), and a Tax Increment Financing Plan (the "TIF Plan") therefor, all pursuant to Minnesota Statutes, Sections 469.174 through 469.1799, as amended (the "TIF Act"), 1.03. The City has determined a need to expand the boundaries of the Development District in order to help facilitate additional development financed with tax increments from the TIF District, which expansion also constitutes a modification of the TIF Plan for the TIF District. 1.04. Accordingly, the City has determined a need to modify the Development Program and the TIF Plan, and has caused to be prepared a document entitled "City of Corcoran, Minnesota, Modification No. 4 to the Development Program for Municipal Development District No. 1, and Modification No. 4 to the Tax Increment Financing Plan For Tax Increment Financing District No 1." 1.05. Estimates of the fiscal and economic implications of the modified TIF Plans were presented to Hennepin County at least 30 days before the public hearing on the TIF Plans on March 22, 2007. The County Commissioner who represents the site also received timely notice of the Tax Increment Financing Plan. Further, the City delivered a copy of the modified TIF Plan and Development Program to Independent School District Nos. 833 and 877, and received written comments form the boards of those school districts waiving the 30-day notice period. 1.06. This Council has fully reviewed the contents bf the modified Program and TIF Plan, and date conducted a public hearing thereon on March 22, 2007 and continued on April 12, 2007, at which the views of all interested persons were heard. 1.07. The City has submitted the modified Program and TIF Plan to the City Planning Commission, which has found that they conform to the comprehensive City Plan. Section 2. Findirim Development District. 2.01. It is hereby found and determined that within the Development District there is a need to encourage development within areas which are already built up, to provide employment opportunities, to improve the tax base, and to provide an impetus for commercial development. 2.02, It is further found and determined that, since initial establishment of the Development District, development and redevelopment needs have expanded to include the additional area shown in the modified Development Program- 2.03. It is further specifically found and determined that the development described in the Development Program as modified would not be feasible without the public intervention and financial assistance described in the modified Program and TIF Plan. Section 3. Findings, TIF District No 1. 3.01. It is found and determined that it is necessary and desirable for the sound and orderly development of the Development District, and for the protection and preservation of the public health, safety, and general welfare, that the authority of the TIF Act be exercised by the City to provide public financial assistance to the TIF and Development Districts, 3.02. It is further found and determined, and it is the reasoned opinion of the City, that the development proposed in the modified Program and TIF Plan could not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and that therefore the use of tax increment financing is necessary. 3.03. The proposed public improvements to be financed in part through tax increment financing are necessary to permit the City to realize the full potential of the TIF and Development Districts in terms of development intensity, employment opportunities and tax base. 3.04. The modified TIF Plan conforms to the general plan of development of the City as a whole. 3.05. The modified TIF Plan will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development of the TIF and Development Districts by private enterprise. 3.06. This modification does not change the classification or boundaries of the TIF District. The TIF District remains classified as a redevelopment district under Section 469.174, subd. 10 of the TIF Act (as of the date of request for certification). 3.07. Reasons and facts supporting the above findings are set forth in Exhibit A hereto. The Council has also relied upon the reports and recommendations of its staff and consultants as well as the personal knowledge of members of the Council in reaching its conclusions regarding the modified Program and TIF Plan 307745v1 MNI CR100 -I i Section 4. Modified Program and TIF Plan Adopted• Filing. 4.01. The modified Program and TIF Plans are hereby approved and adopted. 4.02. The geographic boundaries of the Development District are expanded to include the area specified in the modified Development Program. The geographic boundaries of the TIF District are not changed by this action. 4.03. The City Clerk is authorized and directed to file a copy of this resolution together with a copy of the modified Program and TIF Plan to the Auditor of Hennepin County, and to file a copy of those documents with the Minnesota Commissioner of Revenue and the State Auditor as required by the TIF Act; provided that nothing herein shall be deemed to constitute a request for certification of any parcel or TIF District. Approved by the City Council of the City of Corcoran this 12a` day of April, 2007 Voting Aye: Grabowski, Gunehtner, Hudok, Jacobs and Thomas. CITY OF CORCORAN Mayor ATTEST: w� City Clerk (Acting) 307745v1 MNI CR10041I "� r, Statement of Facts Supporting Findings The reason for the TIF Plan modification is solely to recognize the expansion of the Development District, and to authorize expenditures for additional infrastructure costs in the expanded area. The specific development to be assisted is a business park to be established by 'United Properties or a related entity_ The City has determined that the interchange improvements at ifighway 55 and Pioneer Trail are required in order to proceed with Phase II, the retail portion of the business park. The cost of such interchange improvements, if added to special assessments for the other the improvements needed for the business park, would impair the ability to develop the business park in full. Therefore, the City believes that, absent the tax increment assistance for the interchange improvements, full development of the business park would be unlikely to occur in the reasonably foreseeable future. The proposed business park will create approximately 500,000 square feet of industrial and commercial space, adding significant jobs and tax base. The City Planning Commission has found that the business park development is consistent with the City comprehensive plan. 307745YI MNI CR100 -1 I CITY OF CORCORAN JOINT PLANNING COMMISSION /PARKS AND TRAILS COMMISSION /CITY COUNCIL MEETING 7:00 PM —THURSDAY, MARCH 7, 2013 AGENDA 1. Call to Order 2. Pledge of Allegiance 3. Open Forum 4. Approval of a. Agenda b. *February 7, 2013 Planning Commission minutes 5. Unfinished Business 6. New Business a. Introduction to Planning b. Development Process c. Commission /Council Roles and Responsibilities d. Discussion of Council Priorities for 2013 7. Reports a. Other Business 8. Adjournment *Literature to review Material relating to these agenda items can be found in the House Agenda Packet, located near the entrance to the Community Room Meeting Area. STAFF REPORT Agenda Item 10e. Council Meeting: Prepared By: February 28, 2013 Jeff Carson Topic: Action Required: Ryan Wetland Donation Approval The attached Agreement to Donate has been presented by Ryan Companies for our consideration and acceptance. The initial draft (Page 3 bottom) provided for a proration of taxes on the property of approximately $2,200 due in 2013. I explained that the City would not be interested in paying taxes on the property and they have amended that section to provide for payment of 2013 taxes by Donor (Ryan). The other costs to the City associated with this transaction include a title policy (if desired) and a recording fee. These costs will not be excessive because the land value is so low and I will have an estimate for the title policy available at the meeting of 2/28/13. Staff Report / Police Department — Page 2 AGREEMENT TO DONATE THIS AGREEMENT TO DONATE (this "Agreement ") is made and entered into as of the "Effective Date" defined in Section 1.1 below, by RYAN COMPANIES US, INC. a Minnesota corporation ( "Donor "), and THE CITY OF CORCORAN, MINNESOTA, a Minnesota municipal corporation ( "Donee "). RECITALS: Donor desires donate to Donee the Property legally described below, and Donee wishes to accept the same. NOW, THEREFORE, in consideration of the mutual covenants and obligations created hereby, as well as other good and valuable consideration, Donee agrees to accept and Donor agrees to donate to Donee the Property described below, subject to and upon the terms and conditions set forth below. 1. Property. The Property which is the subject of this Agreement (the "Proper consists of unimproved land situated in Corcoran, Minnesota, particularly described as follows: That part of the Northeast Quarter of the Southeast Quarter of Section 27, Township 119, Range 23, which lies South of the North 960.00 feet thereof, except that part of the South 155.00 feet of the North 1115.00 feet of said Northeast Quarter of the Southeast Quarter lying West of the East 789.00 feet thereof, according to the United States Government Survey thereof and situate in Hennepin County, Minnesota. AND That part of the Southeast Quarter of the Southeast Quarter of Section 27, Township 119, Range 23 lying North of the South 944.64 feet thereof, according to the United States Government Survey thereof and situate in Hennepin County, Minnesota. The term "Property" shall include all easements, privileges, servitudes, appurtenances, and other rights and entitlements pertaining to the Property which are or shall be vested in Donor prior to Closing (as hereinafter defined). 1.1 Time for Acceptance and Effective Date. The "Effective Date" of this Agreement shall be the date on which the last of the parties has executed this Agreement. Each executing party on the day of execution shall send the other party an electronic copy of the executed and witnessed signature page. The "Closing Date" (as further defined by Paragraph 8 of this Agreement), shall take place on or before April 15, 2013, and shall be the time at which all terms of this Agreement are considered fully performed or waived, if applicable, as they pertain to the Property, subject to any of the terms which are expressly stated to survive the Closing hereof. The use of the terms "Closing" and "Closing Date" when used in this Agreement can be used interchangeably, and each use of those terms shall be construed to address the Closing and/or the Closing Date, as appropriate. 2. Purchase Price and Terms of Payment. Page 1 of 8 2.1 The purchase price is Zero Dollars ($0.00) (the "Purchase Price "). Donor shall receive nothing of value in exchange for making the donation described in this Agreement; provided, however, that other agreements between Donor and Donee constitute good and valuable consideration for the donation required by this Agreement. 2.2 At Closing, the title to the Property shall be conveyed and transferred WITHOUT ANY WARRANTY OF TITLE, EXCEPT AS FOLLOWS: Donor shall make a limited warranty of title warranting against those claiming by, through or under an act of Donor. The Deeds from Donor to Donee (further described below) shall expressly state: "THE SUBJECT PROPERTY IS TRANSFERRED WITHOUT ANY WARRANTY OF TITLE, EXCEPT AS FOLLOWS: Donor makes a limited warranty of title warranting against those claiming by, through or under an act of Donor." 3. Conditions to Closing 3.1 Representations and Warranties. All of Donor's representations and warranties must be true as of the Closing. 3.2 Donee's Right to Access and Inspection. From the Effective Date until March 30, 2013 (herein called the "Due Diligence Period "), Donor shall allow Donee, and Donee's agents, access to the Property without charge and at all reasonable times for the purpose of Donee's investigation and testing the same. Donee shall pay all costs and expenses of such investigation and testing, shall repair any damage which it causes to the Property, and shall defend, indemnify and hold Donor harmless from all claims and liabilities relating to the Donee's activities (excluding liabilities arising from discovery of any hazardous substances on the Property). Donee shall not utilize agents to enter the property that are not fully insured against liability and workman's compensation. Donee shall provide to Donor the name, address, and contact person for all persons /companies hired by Donee to perform due diligence activities on the Property. 3.3 Termination Right by Donee. If for any reason whatsoever Donee determines that the Property is not suitable or acceptable for Donee's intended purposes, then this Agreement may be terminated by notice from Donee to Donor, provided such notice is furnished in writing by Donee to Donor on or before the last day of the Due Diligence Period. Upon such termination, neither party will have any further rights or obligations regarding this Agreement or the Property. All contingencies are specifically for the benefit of the Donee, and the Donee shall have the right to waive any contingency. 3.4 Sale AS / IS and WHERE IS. If Donee does not terminate this Agreement in accordance with Section 3.3 prior to the end of the Due Diligence Period, then Donee shall be deemed to have accepted the Property in its then current condition, Donee shall be obligated to accept the Property, and Donor shall remain obligated to transfer the Property to Donee on the terms and conditions set forth in this Agreement. It is further provided that as to its condition, the Deed shall provide and the Property shall be conveyed as follows: "The PROPERTY IS TRANSFERRED BY DONOR AND ACCEPTED BY DONEE IN ITS `AS IS' AND `WHERE IS' CONDITION, WITHOUT ANY WARRANTY OR RECOURSE WHATSOEVER AS TO THE CONDITION OF THE PROPERTY, including, without limitation, any warranty as to the absence of vices or defects (whether apparent or latent, known or unknown, easily discoverable or hidden), fitness for any ordinary use, or fitness for any intended use or particular purpose, even for the return or reduction of the purchase price or otherwise. Donee Page 2 of 8 acknowledges reliance solely on Donee's inspection of the property. 4. Closing Obligations. 4.1 At Closing, Donor shall deliver to Donee the following: 4. 1.1 A Limited Warranty Deed ( "Deed "), signed by Donor; 4.1.2 Certificate of Non - Foreign Status or statement complying with Section 1445(b)(2) or (3) of the Internal Revenue Code of 1986, as amended; 4.1.3 Such other documents as reasonably requested by Donee or the Title Agent in order to issue a policy of title insurance on the Property, provided same is consistent with the provisions of this Agreement, including particularly the limited warranty of title provisions and the AS -IS / WHERE IS / NO WARRRANTY of conditions provisions. 4.1.4 A Settlement Statement. 4.2 At Closing, Donee shall deliver to Donor the following: 4.2.1 A Settlement Statement. 5. Place of Closing. Closing shall be held at the offices of the Donor's attorneys, or the Closing shall be by mail or overnight delivery or other delivery, with a wire transfer of any funds called for on the Settlement Statement. 6. Closing Date. The consummation of this transaction ("Closing") shall take place on or before April 15, 2013 at 4:00 p.m. Central Time. Donee may set the Closing to an earlier date by sending Donor notice of its intent to close (the "Notice to Close ") at least ten (10) days in advance of the designated Closing Date ( "Notice Date ") in accordance with this Article 8 and the notice provisions of this Agreement. 7. Closing Costs. 7.1 Donee shall pay the costs of Donee's inspection, studies, and testing of the Property, Donee's attorneys' fees, and all fees and costs associated with any financing obtained by Donee. Donee shall pay all costs related to recording of the Deed, the cost of the Title Review, the Title Policy and the Survey and third party reports required including, but not limited to appraisals, environmental reports and other third party inspection reports. 7.2 Donor shall pay for Donor's attorneys' fees. 7.3 The remaining costs incurred in the transaction will be paid by Donee, it being provided further however, that in no event shall Donee be required to reimburse Donor for any costs paid directly by Donor, including Donor's attorney's fees. 8. Real Estate Taxes; Assessments. The real estate taxes on the Property being conveyed shall be pr-er-a4 �4-aspaid by Donor on-of the Closing Date based on the etiffent year's Page 3 of 8 "e and payable basisfor the current year. Real estate taxes for subsequent _years shall be paid by Donee. 9. Agreements of Donor. 9.1 Donor agrees that, from the Effective Date and until the earlier to occur of termination of this Agreement, expiration of this Agreement, or Closing, Donor shall not encumber the Property or permit the Property to be additionally encumbered, without the consent of Donee. 10. Representations and Warranties of Donor. 10.1 Donor hereby represents and warrants to Donee: 10.1.1 Donor represents that it has the lawful authority to donate the Property and to otherwise carry out the terms of this Agreement, and the execution and delivery of this Agreement and the performance thereof is not prohibited by or inconsistent with any agreement to which Donor is a party or pursuant to which Donor exists as a legal entity. Donor also represents that it is a duly formed, validly existing entity under the laws of Minnesota, and that all necessary authorizations and approvals have been obtained authorizing Donor to execute this Agreement and consummate the transaction contemplated hereby. Donor has received no notice of pending or threatened condemnation or similar proceeding affecting the Property or any portion thereof, nor has Donor knowledge that any such action is presently contemplated. 10.1.2 Donor knows of no violation of any applicable laws, ordinances, regulations, statutes, rules and restrictions pertaining to and affecting the Property. Performance of this Agreement by Donor will not result in any breach of or constitute any default under any agreement to which Donor is a party or by which Donor or the property are bound. 10.1.3 Donor knows of no legal actions, suits or other legal or administrative proceedings, pending, that affect the Property or any portion thereof, nor does Donor have knowledge that any such action is presently contemplated. 10.1.4 Donor knows of no oral or written service, maintenance, landscaping, security, management or other similar contracts which will affect the operation or maintenance of the Property after Closing. 10.1.5 Donor has not granted any leases, oral or written, affecting the Property or any part thereof, nor any other right, title or interest in or to the Property to any other individual or entity that will survive Closing. 11.2 Unless Donor notifies Donee to the contrary prior to the Closing, each of the representations and warranties contained in this Paragraph 11 shall be deemed made as of the date of this Agreement and again as of the Closing Date. Donor agrees that should it become aware prior to closing that any of its representations has changed it will immediately notify Donee of same. 11. Representations of Donee. Donee represents that Donee has the lawful authority to accept the Property and to otherwise carry out the terms of this Agreement, and the execution and delivery of this Agreement and the performance thereof is not prohibited by or inconsistent with any agreement to which Donee is a party or pursuant to which Donee exists as a legal entity. Donee also Page 4 of 8 represents that it is a duly formed, validly existing entity under the laws of Minnesota, and that all necessary authorizations and approvals have been obtained authorizing Donee to execute this Agreement and consummate the transaction contemplated hereby. 12. Default. 12.1 Default by Donor. In the event Donor fails to comply with any of its obligations or conditions hereunder for any reason except for (i) any permissible reasons set forth herein, (ii) Donee's default, or (iii) events of force majeure, Donee shall have the right to (a) cancel this Agreement, or (b) seek the specific performance of this Agreement. It is expressly provided, however, that Donee shall provide Donor with written notice of any default hereunder which notice shall provide Donor with a ten day grace period within which to cure any default of which notice has been given or such longer period of time as is reasonably necessary to cure the default if the nature of the default is such that it cannot be cured within the ten day grace period and Donor is diligently and continuously prosecuting such cure to completion, during which time Closing may be postponed, if necessary, for a period not to exceed thirty days. 12.2 Default by Donee. In the event Donee fails to comply with any of its obligations or conditions hereunder for any reason except for (i) any permissible reasons set forth herein, (ii) Donor's default, or (iii) events of force majeure, Donor shall have the right to (a) cancel this Agreement, or (b) seek the specific performance of this. It is expressly provided, however, that Donor shall provide Donee with written notice of any default hereunder which notice shall provide Donee with a ten day grace period within which to cure any default of which notice has been given or such longer period of time as is reasonably necessary to cure the default if the nature of the default is such that it cannot be cured within the ten day grace period and Donee is diligently and continuously prosecuting such cure to completion, during which time Closing may be postponed, if necessary, for a period not to exceed thirty days. 12.3 TO THE MAXIMUM EXTENT PERMITTED BY LAW, EACH OF DONEE AND DONOR KNOWINGLY, VOLUNTARILY, INTENTIONALLY AND IRREVOCABLY WAIVE ALL RIGHT TO TRIAL BY JURY IN RESPECT OF ANY ACTION, PROCEEDING, OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT, OR OTHERWISE) ARISING OUT OF OR RELATED TO ANY OF THE PROVISIONS OF THIS AGREEMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER ORAL OR WRITTEN) OR ACTIONS OF ANY PARTY HERETO OR TO ANY DOCUMENT PERTAINING TO THIS AGREEMENT OR THE TRANSACTION CONTEMPLATED HEREBY. THIS PROVISION IS A MATERIAL INDUCEMENT OF ALL PARTIES ENTERING INTO THIS AGREEMENT. THE PARTIES HEREBY SUBMIT TO THE JURISDICTION OF THE DISTRICT COURT OF THE STATE OF MINNESOTA IN WHICH THE PROPERTY IS LOCATED IN RESPECT OF ANY SUIT OR OTHER PROCEEDING BROUGHT IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT. 13. Persons Bound. The benefits and obligations of the covenants herein shall inure to and bind the respective successors and assigns of the parties hereto. Page 5 of 8 14. Notices. All notices, request, consents, instructions, and communications required or permitted under this Agreement shall be in writing and shall be (as elected by the person giving such notice) either hand - delivered by messenger or nationally recognized overnight courier service, sent by e- mail, read receipt requested, with copy by mail, or mailed (air mail if international) by certified mail (postage prepaid), return receipt requested, and addressed to each party at their respective addresses as set forth below or to such other addresses any party may designate by notice complying with the terms of this Paragraph 14. IF TO DONOR: Audra Williams Ryan Companies US, Inc. 50 South Tenth Street, Suite 300 Minneapolis, MN 55403 E -mail: Audra.williams @ryancompanies.com IF TO DONEE: The City of Corcoran, Minnesota Each such notice, request, or other communication shall be considered given and shall be deemed delivered (a) on the date delivered if by personal delivery or courier service; (b) on the date of transmission with confirmed read receipt if sent by e-mail and if transmitted before 5:00 p.m. on a business day, and on the next business day if transmitted after 5:00 p.m. or on a non - business day; or (c) on the date on which the return receipt is signed or delivery is refused or the notice is designated by the postal authorities as not deliverable, as the case may be, if mailed. Rejection, refusal to accept, or inability to deliver of which no notice was given shall be deemed to be a receipt of such notice, request, or other communication. The respective attorneys for Donor and Donee are hereby authorized to give any notice pursuant to this Agreement on behalf of their respective clients. 15. Miscellaneous. 15.1 Counterparts and .pdf Signatures. � This Agreement may be executed in any number of counterparts, each of which shall be considered an original and a complete set of which taken together shall constitute one and the same agreement. The parties agree and intend that a signature by .pdf file sent by e -mail shall bind the party so signing with the same effect as though the signature was an original. 15.2 Governing Law; Venue. This Agreement shall be governed by Minnesota law. No amendments to this Agreement shall be effective unless signed by both parties and in writing. Venue for any legal proceedings shall be in Hennepin County, Minnesota. 15.3 Complete Agreement. This Agreement evidences the complete understanding of the parties hereto as respects the matters addressed herein. No agreement or representation, unless set forth in this Agreement, shall bind any of the parties hereto. 15.4 Partial Invalidity. In the event that any Paragraph or portion of this Agreement is determined to be unconstitutional, unenforceable or invalid, such Paragraph or portion of this Agreement shall be stricken from and construed for all purposed not to constitute a part of this Page 6 of 8 Agreement, and the remaining portion of this Agreement shall remain in full force and effect and shall, for all purposes, constitute the entire agreement. 15.5 Construction of Agreement. All parties hereto acknowledge that they have had the benefit of independent counsel with regard to this Agreement and that this Agreement has been prepared as a result of the joint efforts of all parties and their respective counsel. Accordingly, all parties agree that the provisions of this Agreement shall not be construed or interpreted for or against any party hereto based upon authorship. 15.6 Waiver of Breach. The failure of any party hereto to enforce any provisions of this Agreement shall not be construed to be a waiver of such or any other provision, nor in any way to affect the validity of all or any part of this Agreement, or the right of such party thereafter to enforce each and every such provision. No waiver of any breach of this Agreement shall be held to constitute a waiver of any other or subsequent breach. 15.7 Time. Time is of the essence of this Agreement. 15.8 Holidays. Wherever any time limit or date provided herein falls on a Saturday, Sunday or legal holiday under the laws of the State of Minnesota, then that date is automatically extended to the next day that is not a Saturday or Sunday or legal holiday. The term "business day" means any weekday that is not a legal holiday under the laws of the State of Minnesota. Time periods herein unless otherwise stated shall be calculated based on calendar days. 15.9 Headings. The captions and Paragraph numbers appearing in this Agreement are inserted only as a matter of convenience and do not define, limit, construe or describe the scope or intent of such Paragraphs of this Agreement or in any way affect this Agreement. 16. Brokers. Donor represents and warrants to the Donee that it has not used the services of any broker with respect to this transaction. Donee represents and warrants to Donor that it has not used the services of any broker with respect to this transaction. Each Party agrees to indemnify and hold harmless the other against and from any inaccuracy in such Party's representation under this Section. This indemnification shall survive the Closing. 17. Recordation. Neither this Agreement, nor any memorandum hereof, shall be recorded in the Public Records of Hennepin County, Minnesota. 18. Possession. At Closing, Donor shall deliver possession and occupancy of the Property to Donee free and clear of any claims of any third parties to possession thereof. REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK Page 7 of 8 IN WITNESS WHEREOF, the parties have executed this instrument as of the day and year set forth below. DONOR RYAN COMPANIES US, INC. a Minnesota corporation Bv: Name: Title: Vice President Date: DONEE THE CITY OF CORCORAN, MINNESOTA a Minnesota municipal corporation By:_ Name: Title: Date: Page 8 of 8 rote LEAGUE of MINNESOTA CITIES INFORMATION MEMO Lawful Gambling Learn what gambling is allowed in Minnesota, like pull -tabs and raffles, and which organizations may conduct them. Understand state regulations on lawful purposes for which gambling money may be spent, licensing, gambling managers, and more. Find out how cities can regulate gambling with "10% funds ", investigation fees, trade areas and local gambling taxes. Contains a sample ordinance and premises permit forms. RELEVANT LINKS: I. Permitted Forms of Gambling Minn. star. §§ 609.75 -.763. Minnesota law generally criminalizes gambling conducted within the state. However, there are exceptions. Permitted forms of gambling include: 25 U.S.C. 2701 et seq. Minn. 0 Native American gaming conducted pursuant to a tribal -state compact. Stat. § 3.9221. Minn. Stat. ch. 349A. • The Minnesota State Lottery. Minn. Stat. ch. 240. Minn. Star. § 240.30. 0 Pari- mutuel betting (horse g \ orse racing). Minn. Star. ch. 349. • Card club operations. Minn. Stat. § 609.75, subd. 3. Minn. Star. § 609.761, subd. Lawful ") gambling. (often called charitable amblin . 3. Minn. Stat. § 609.761, subd. • Private social bets. 4. • Social skill games. • Social dice games. This memo focuses on lawful gambling. It is the only type of gambling subject to municipal regulation. II. Lawful gambling Minn. Star. § 349.12, subd. Lawful gambling is the "operation, conduct, or sale of bingo, raffles, 24. paddlewheels, tipboards, and pull- tabs." A. Bingo Minn. Stat. § 349.12, subd. 4. "Bingo" is a game where each player has a bingo hard card, bingo paper Minn. Star. § 349.17. Gambling Control Board, sheet, or facsimile of a bingo paper sheet when used in conjunction with an Lawful Gambling Manual, electronic bingo device, for which a consideration has been paid, and is Chapter 5: Bingo. played in accordance with state regulations regarding the conduct of bingo. 1. Bar bingo Minn. Stat. § 349.12, subd. "Bar bingo" is a bingo game conducted in an area where intoxicating liquor 3c. or 3.2 percent malt beverages are sold and where the licensed organization conducts another form of lawful gambling. Bar bingo does not include linked bingo games. This material is provided as general information and is not a substitute for legal advice. Consult your attorney for advice concerning specific situations. 145 University Ave. West www.lmc.org 7/13/2012 Saint Paul, MN 55103 -2044 (651) 281 -1200 or (800) 925 -1122 © 2012 All Rights Reserved RELEVANT LINKS: League of Minnesota Cities Information Memo: 7/13/2012 Lawful Gambling Page 2 2. Linked bingo Minn. Star. § 349.12, subd. "Linked bingo' is a bingo game played at two or more locations with a 25a. See Section 11- F- Electronic common prize pool, a common selection of numbers or symbols, and where gambling devices. the results are transmitted to all participating locations by satellite, telephone or other means by a linked bingo game provider. B. Raffles Minn. Star. § 349.12, subd. A "raffle" is a game in which a participant buys a ticket (or other certificate 33. Gambling control Board, of participation) for an event where prizes are awarded based on a method of Lawful Gambling Manual, random selection and all entries have an equal chance of winning. Chapter 6: Raffles. C. Paddlewheels Minn. Stat. § 349.12, subd. A "paddlewheel" is a vertical wheel (or an electronic device that simulates a 29. Gambling control Board, wheel) marked off into sections containing one or more numbers that, after Lawful Gambling Manual, being turned or spun, uses a pointer or marker to determine winning Chapter 8: Paddlewheels. numbers matching purchased tickets. D. Tipboards Minn. Stat. § 349.12, subd. A "tipboard" is a board, placard or other device containing a seal that 34. Gambling control Board, conceals the winning number or symbol. Lawful gambling organizations Lawful Gambling Manual, often use tipboards for "meat raffles." Chapter 7: Tipboards. E. Pull -tabs Minn. Stat. § 349.12, subd. A "pull -tab" is a single folded or banded paper ticket, a multi -ply card with 32. Gambling control Board, perforated break -open tabs, or a facsimile of a paper ticket used in Lawful Gambling Manual, conjunction with an electronic device, the face of which is initially covered Chapter 4: Pull -tabs. See section 11- F- Electronic to conceal one or more numbers or symbols, and where one or more of each gambling devices. set of tickets, cards, or facsimiles has been designated as a winner in advance. F. Electronic gambling devices 2012 Minn. Laws ch. 299. "Frequently The 2012 Minnesota Legislature authorized the use of electronic linked Asked Questions Regarding Electronic Pull bingo and electronic pull -tab devices by licensed lawful gambling Tabs and Electronic Linked organizations. An "electronic device" is a small, portable hand -held device Bingo," LMC information brief, May 2012. that is activated from a central sales facility and cannot accept any coin or currency, though players may play "credits" from previous winning games or tickets. League of Minnesota Cities Information Memo: 7/13/2012 Lawful Gambling Page 2 RELEVANT LINKS: League of Minnesota Cities Information Memo: 7/13/2012 Lawful Gambling Page 3 1. Electronic linked bingo Minn. star. § 349.12, suba. An electronic bingo device: 12a. • Is used to play electronic linked bingo. • Activates bingo numbers that are announced or displayed. • Identifies winning bingo patterns. • Is limited to 36 "faces" per game. • Requires coded entry to activate play, but does not allow the use of coins, tokens, or other currency. • May only be used for play against other bingo players in a bingo game. • Has no additional function as an amusement or gaming device other than electronic pull -tabs. • Has the capability to ensure adequate internal controls. See Section v - State . Permits monitoring by the Gambling Control Board. Regulation. • Can be used by players who are visually impaired. 2. Electronic pull -tabs a) Games Minn. Stat. § 349.12, suba. An electronic pull -tab game: 12c. • Uses facsimiles of pull -tab tickets that are played on an electronic device. • Has a predetermined, finite number of winning and losing tickets (not to exceed 7,500 tickets). • Sells each ticket for the same price (which is not less than 25 cents per ticket). • Is played in conformance with all applicable rules for pull -tabs. Minn. star. § 349.211. • Complies with statutory prize limits. • Has a unique serial number that may not be regenerated. • Has an electronic flare that displays the game name, form number, and predetermined number of tickets in the game (as well as prize tier). • Does not mimic a video slot machine. See Section v11- Local The hours of operation for the devices are limited to 8 a.m. to 2 a.m. regulation. (although local regulations may be more restrictive). All electronic pull -tab games must be sold and played on the permitted premises and may not be linked to other locations. Minn. Stat. § 349.1721, suba. Before playing, individuals must present and register a valid picture 4. identification card that includes the player's address and date of birth. Players are also limited to the use of one device at a time. League of Minnesota Cities Information Memo: 7/13/2012 Lawful Gambling Page 3 RELEVANT LINKS: Minn. Stat. § 349.12, subd. 12b. Minn. Stat. § 349.17, subd. 9. Minn. Stat. § 349.1721, subd. 4. Minn. Stat. § 349.17, subd. 9. Minn. Stat. § 349.1721, subd. 4. b) Devices An electronic pull -tab device is a handheld, portable device that: • Is used to play one or more electronic pull -tab games. • Requires coded entry to activate play, but does not use coins, tokens, or other currency. • Requires that a player activates or opens each electronic pull -tab ticket, as well as each individual line, row, or column on each ticket. • Maintains information regarding accumulated credits that may be applied to games or redeemed upon termination of play. • Has no spinning reels or other features that mimic a video slot machine. • Has no additional gambling functions other than electronic linked bingo. • May incorporate an "amusement game" feature, but may not require additional consideration for use of that feature. • May have audio or visual enhancements. • Maintains (on non - resettable meters) a printed, permanent record of play. • Is not a pull -tab dispensing device. • Can be used by players who are visually impaired. 3. Eligible locations A lawful gambling organization that wants to offer electronic pull -tabs must sell paper pull -tabs at that location. The use of these electronic gambling devices (for bingo and pull -tabs) is limited to locations that are: • Licensed for the on -sale or off -sale of intoxicating liquor or 3.2 malt beverages (except for general food stores or drug stores that sell alcoholic beverages). • Bingo halls with a seating capacity of 100 or more (as determined under the local fire code). 4. Limitations The number of electronic gambling devices allowed is based on the size of the premises and the location's capacity as determined by the fire code. The lawful gambling organization is limited to having no more than: • Six devices in play at locations with 200 seats or less. • Twelve devices in play for locations with 201 seats or more. • Fifty devices in play for locations where bingo is the primary business. League of Minnesota Cities Information Memo: 7/13/2012 Lawful Gambling Page 4 RELEVANT LINKS: "Frequently Asked Questions State law allows for electronic devices that can be used for both pull -tab and Regarding Electronic Pull - Tab Games and came linked bingo games, although the limitations would still apply. For example, Systems and Electronic an organization operating at a location with 200 seats or less could have 12 Linked Bingo," Gambling Control Board, May, 2012. "combo" devices, but at any given time, only six could be "in play" for electronic pull -tabs and only six could be in play for electronic linked bingo. III. Eligible organizations Minn. Stat. § 349.12, subd. Lawful gambling may only be conducted by: 28. Minn. Stat. § 349.12, subd. • Fraternal organizations. 16a. Minn. R. 7861.02 10, subp. • Religious organizations. 45. Minn. R. 7861.02 10, subp. 0 Veterans' organizations. 50. . "Other" nonprofit organizations. Minn. R. 7861.0210. subp. For the purpose of lawful gambling eligibility, "other" nonprofit 39. organizations meet at least one of the following criteria: IRS - Charities and other . Have a current letter of tax exemption from the Internal Revenue Service Nonprofits. (IRS). Minn. Stat. ch. 317A. 0 Are incorporated as nonprofit corporations and registered with the Minnesota Secretary of State. Minnesota secretary of state. • Are affiliates, subordinates, or chapters of a statewide parent organization that qualifies as a nonprofit. Minn. R. 7861.0220. Otherwise eligible organizations may not conduct lawful gambling without Gambling Control Board. Minn. Stat. § 349.16, subd. 2. first obtaining a license from the state of Minnesota through the Gambling Control Board (Board). To qualify, an organization must: • Have at least 15 active members at the time of its initial license application and at least 13 members eligible to vote on gambling matters thereafter. • Have been in existence for the most recent three years preceding application. See section v - C - . Identify a qualified gambling manager. Gambling managers. 0 Not exist for the sole purpose of conducting gambling. Qualified organizations include American Legions, Veterans of Foreign Wars, Moose Lodges, local athletic associations, and churches. Minn. Stat. § 424A.001, subd. Cities are not eligible organizations. As a result, neither a city nor any city 4. LMC Information Memo, department may conduct lawful gambling. However, while a city fire Raise Funds, Not Red Flags. department is ineligible, a fire relief association may conduct lawful gambling because it is a separately incorporated nonprofit organization within the meaning of the law. League of Minnesota Cities Information Memo: 7/13/2012 Lawful Gambling Page 5 RELEVANT LINKS: IV. Revenues and expenditures Minn. Stat. § 349.15. Organizations conduct lawful gambling to raise money, but are not free to spend it any way they please. Lawful gambling proceeds may only be used for allowable expenses or lawful purposes. A. Allowable expenses Minn. Stat. § 349.12, subd. Allowable expenses include purchases of goods, services, or other items 3a. Gambling Control Board, directly related to the conduct of lawful gambling. Advertising expenditures Lawful Gambling Manual, are also allowable expenses, provided the advertisement only publicizes the Chapter 11: Allowable Expenses. conduct of lawful gambling by the organization, and lawful gambling profits do not pay for any non - lawful gambling - related content. Minn. Stat. § 349.15, subd. 1. Licensed organizations obtain a rating from the Board based on a comparison between annual lawful purpose expenditures and available profits for the same 12 -month period. An organization that expends: • Fifty percent or more of gross profits on lawful purposes will receive a five -star rating. • More than 40 percent but less than 50 percent of gross profits on lawful purposes will receive a four -star rating. • More than 30 percent but less than 40 percent of gross profits on lawful purposes will receive a three -star rating. • More than 20 percent but less than 30 percent of gross profits on lawful purposes will receive a two -star rating. • Less than 20 percent of gross profits on lawful purposes will receive a one -star rating. Minn. Stat. § 349.15, subd. 1. Any organization that fails to obtain at least a three -star rating (or a two -star rating if the organization conducts lawful gambling in a location where the primary business is bingo) will be automatically placed on probation for one year. If the organization is unable to raise its rating after the probationary term, the Board may suspend the organization's license or impose a civil penalty. Minn. Stat. § 349.15, subd. 1. When determining the appropriate punishment, the Board will consider any "unique factors or extraordinary circumstances" that caused an organization to not meet the minimum rate of profitability, including but not limited to: • The purchase of capital assets necessary to conduct lawful gambling. • Construction that impaired access to gambling premises. • Flooding, tornadoes, or other catastrophes that had a direct impact on the gambling operations. League of Minnesota Cities Information Memo: 7/13/2012 Lawful Gambling Page 6 RELEVANT LINKS: Minn. Stat. § 349.151, subd 4. Minn. Stat. § 349.15. Minn. Stat. § 349.12, subd. 25. Although there are limitations on the penalties the Board may normally impose, civil penalties for violating the expense limitation may be up to $10,000. B. Lawful purposes Lawful purposes for which profits from lawful gambling may be expended include: • Contributions to nonprofit or festival organizations. • Contributions to individuals or families suffering from poverty, homelessness, or disability. • Contributions to programs recognized by the Department of Human Services for the education, prevention, or treatment of problem gambling. • Contributions to or expenditures on registered or accredited public or private nonprofit educational institutions. • Contributions to an individual, public or private nonprofit educational institution registered with or accredited by this state or any other state, or to a scholarship fund of a nonprofit whose primary mission is to award scholarships, for defraying the cost of education to individuals where the funds are awarded through an open and fair selection process. • Contributions funding activities by an organization or government entity that recognizes military service to the United States, the state of Minnesota, or a community. • Contributions for recreational, community, and athletic facilities and activities intended primarily for persons under age 21, provided that such facilities and activities do not discriminate on the basis of gender, and the organization complies with other statutory requirements. • Payment of federal, state, and local taxes. • Contributions to the United States, the state of Minnesota, or any political subdivision, or any agency or any subdivision thereof, other than a direct contribution to a law enforcement or prosecutorial agency. League of Minnesota Cities Information Memo: 7/13/2012 Lawful Gambling Page 7 RELEVANT LINKS: League of Minnesota Cities Information Memo: 7/13/2012 Lawful Gambling Page 8 • Contributions to or expenditures on projects approved by the Minn. Star. § 349.154. commissioner of Natural Resources for wildlife management projects that benefit the public at large, grant -in -aid (or other trail) maintenance and grooming, and supplies and training for safety training and education programs coordinated by the Department of Natural Resources. • Nutritional programs, food shelves, and congregate dining rooms primarily for persons who are age 62 or older or disabled. • Contributions to a community arts organization, or an expenditure to sponsor arts programs in the community, including but not limited to visual, literary, performing, or musical arts. • Contributions to honor an individual's humanitarian service as demonstrated through philanthropy or volunteerism to the United States, the state of Minnesota, or a local community. Minn. Stat. § 349.12, subd. Lawful gambling profits may not be used for the purpose of influencing the 25 (c). Minn. Star. § 471.6151. nomination or election of a candidate for public office, promoting or defeating a ballot question, or for influencing the governmental decision - Gambling Control Board, Lawful Gambling Manual, making process. Organizations may not make a contribution to a city with Chapter 12: Lawful Purpose the knowledge that the city intends to use the contribution for a pension or Expenditures. retirement fund, nor may cities use any contributions derived from lawful gambling for the benefit of a pension or retirement fund. While an organization can make contributions to a 501(c)(3) or other entity, it may not if the purpose (or effect) will be noncompliance with lawful purpose restrictions or requirements. V. State regulation Minn. Stat. § 349.151. The Board has the authority to make rules and regulate lawful gambling to Minn. R. ch. 7861. Gambling control Board. ensure it is conducted in the public's interest. It issues organization licenses, premises permits, and gambling manager licenses. The Board has the authority to suspend or revoke licenses and permits and may impose civil penalties up to $1,000 for each violation of the state's gambling laws or rules. A. Organization licenses Minn. Stat. § 349.16. Organizations must be licensed by the Board to conduct most types of lawful Minn. Stat. § 349.155. New organization License gambling. An organization desiring a gambling license must obtain an Application. application from the Board. If the application complies with all legal requirements, the Board will grant the license. League of Minnesota Cities Information Memo: 7/13/2012 Lawful Gambling Page 8 RELEVANT LINKS: Minn. Stat. § 349.16. Licenses issued are perpetual and valid unless suspended or revoked by the Minn. R. 7861.0220. Gambling Control Board, Board, terminated by the organization, or if the license lapses. A licensed Lawful Gambling Manual, organization must notify the Board within 10 days when any changes in the Chapter 1: Organization License. application information occur. The license, when issued, is not transferable from one organization to another. Minn. Stat. § 349.16, subd. A license will be considered to have lapsed if the organization does any of 3a. the following: • Failed to conduct and report any gambling sales activity within seven months from the date of the last gambling activity. Minn. Stat. § 349.167. • Failed to have a gambling manager as required. • Failed to pay annual license and permit fees. Minn. Stat. § 349.19. • Surrenders, withdraws, or otherwise terminates the license, and files a termination plan. Minn. Stat. § 349.16, subd. When a license is determined to have lapsed, the Board may take one of the 3a. following actions: Minn. Stat. § 349.155. • Conduct a contested case hearing to revoke or suspend a license. Minn. Stat. § 349.19. • Require the organization to file a termination plan. • Enter a revocation order as of the date the license was considered lapsed. Minn. Star. § 349.151, subd. . Impose a civil penalty. 4. Minn. Star. § 349.151, subd. • Order a corrective action. 7. • Summarily suspend the license. Minn. Stat. § 349.1641. Minn. Stat. § 349.16, subd. 6. There is an annual fee of $350 for an organization's license. Organizations that expect to receive less than $100,000 in gross annual receipts may request a waiver of the organization license fees. Minn. Stat. § 349.16, subd. An organization must also report and pay to the commissioner of Revenue a 6a. Minnesota Revenue Lawful monthly regulatory fee of 0.1 percent of the monthly gross receipts from Gambling Monthly Tax. lawful gambling conducted each month. Failing to pay the monthly regulatory fees in a timely manner may result in disciplinary action. B. Premises permits Minn. Star. § 349.165. An organization applying for a gambling license must also apply for a Minn. R. 7861.0240. premises permit to conduct lawful gambling at any specific location. The Gambling control Board Board will not grant a license to an organization that has not applied for at Lawful Gambling Manual, Chapter 3: Premises Permits least one premises permit. Because premises permits are location - specific, and Leases. licensed organizations that want to conduct lawful gambling at multiple locations must first obtain a separate premises permit for each place before lawful gambling can occur. League of Minnesota Cities Information Memo: 7/13/2012 Lawful Gambling Page 9 RELEVANT LINKS: Mim,. star. § 349.213. The Board may not issue a premises permit unless the organization submits In re Dead Broke Saddle Club, No. A03 -306 (Minn. with its application a resolution from the city council approving the permit. Ct. App. Jan. 13, 2004) The resolution must have been adopted within 90 days of the date of the (unpublished opinion). application for the new permit. Minn. star. § 349.165. Premises permit fees are $150 per year. The premises permit(s) runs concurrently with the organization's license and is perpetual unless revoked or suspended by the Board, or terminated by the organization. C. Gambling managers Minn. star. § 349.167. The Board will not grant a license unless the applying organization has Minn. R. 7861.0230. identified a gambling manager who will be licensed by the Board at the time the organization receives its license. All lawful gambling conducted by a Gambling Control Board, Lawful Gambling Manual, licensed organization must be conducted under the supervision of a licensed Chapter 2: Gambling gambling manager, someone who has passed the Board's gambling manager Manager License. examination and receives continuing education training at least once during each calendar year. The gambling manager is responsible for ensuring that the organization conducts lawful gambling in compliance with all applicable laws and administrative rules. The gambling manager is also responsible for all receipts derived from lawful gambling. Minn. stat. § 349.167, subd. Upon the death, disability, or termination of the gambling manager, an 2. organization must: • Contact the Board within one business day and establish a plan to replace the gambling manager. • Submit a complete application and fee within four business days. Minn. stat. § 349.167. The fee for a gambling manager license is $100. The license runs concurrent Gambling Manager Application. with the organization license unless the gambling manager's license is suspended or revoked by the Board, or terminated by the organization or gambling manager. In addition to the license, the gambling manager must maintain a dishonesty bond in the sum of $10,000 in favor of the organization, conditioned on the faithful performance of the manager's duties. D. Off -site permits Minn. stat. § 349.165, subd. There are limited circumstances where a licensed organization may hold 5. Application to Conduct oft- lawful gambling events at a location for which it does not hold a premises site Gambling. permit. Subject to local approval, the Board may issue off -site permits in See section v11- E - connection with a county fair, the state fair, a church festival, or a civil Investigation fees. celebration. Up to four off -site events are allowed each calendar year, and each event is limited to three days. Neither the Board nor the city may charge a fee for issuing an off -site permit. League of Minnesota Cities Information Memo: 7/13/2012 Lawful Gambling Page 10 RELEVANT LINKS: E. Bingo hall licenses A distinct bingo hall license is no longer required in the state of Minnesota. VI. Exclusions and exemptions The state does not license all types of lawful gambling. State law provides exclusions and exemptions for some lawful gambling events. It is important for cities to know which events are excluded or exempted from state licensing because they may want to regulate these events through local permits. A. Excluded gambling Minn. Stat. § 349.166, suba. The following types of gambling are excluded from state licensing: 1. • Bingo conducted by an organization in conjunction with a county fair, state fair, or a civic celebration for no more than 12 consecutive days. The organization can make no more than four separate applications for activities applied for and approved per calendar year. This exclusion does not apply to linked bingo games. • Bingo conducted by an organization on four or fewer days in a calendar year. This exclusion does not apply to linked bingo games. • Bingo conducted within a nursing home or senior citizens housing project, or by a senior citizens organization. This exclusion applies if: • The prizes for a single bingo game do not exceed $10. • Total prizes awarded at a single bingo occasion do not exceed $200. • No more than two bingo occasions are held by the organization or at the facility each week. • Only members of the senior citizen organization, nursing home, or housing project are allowed to play. • No compensation is paid to any persons who conduct the bingo game. • A manager is appointed to supervise the bingo. • Raffles conducted by an organization that does not award raffle prizes with a total value in excess of $1,500 in a calendar year. Minn. R. 7861.0330. An organization that conducts the first two types of excluded bingo must Minn. Stat. § 349.213. Permit for Fundraising register with the Board and obtain prior approval by the local governing Events. body. Registration with the Board is not required for senior citizen or nursing home bingo, or raffles that award less than $1,500 in a calendar year. League of Minnesota Cities Information Memo: 7/1312012 Lawful Gambling Page 11 RELEVANT LINKS: Minn. Stat. § 645.48. While the language is subject to interpretation, cities appear to have the See Appendix A - application authority to require local permits for organizations that conduct the first two for premises permit. types of excluded bingo and raffles with prizes under $1,500 in a calendar Appendix B - resolution approving the permit. year (though as previously indicated, these raffles may be conducted without Appendix C - resolution registering with the Board and without prior local approval). However, the denying the permit. law appears to specifically prohibit cities from requiring a local permit to conduct senior citizen or nursing home bingo. B. Exempted gambling Minn. Stat. § 349.166, suhd. Certain lawful gambling events are exempt from the state licensing 2. requirements. Under state law, bingo (except linked bingo games), raffles, paddlewheels, tipboards, and pull -tab operations may be conducted by an organization without a license, if the following conditions are met: • The organization conducts lawful gambling on five or fewer days in a calendar year. • The organization does not award more than $50,000 in prizes for lawful gambling in a calendar year. Application for Exempt • The organization pays a fee of $50 and submits a Board - prescribed Permit. application in writing not less than 30 days before each lawful gambling occasion (the fee increases to $100 if application is postmarked or received less than 30 days before the event). The application must include the date and location of the occasion, the types of lawful gambling to be conducted, and the prizes to be awarded. • The organization notifies the city 30 days before the lawful gambling occasion (60 -day notice is required in a city of the first class). • The organization purchases all gambling equipment and supplies from a licensed distributor. • The organization complies with all of the Board's reporting requirements. Minn. R. 7861.0340. The application submitted to the Board must include local government approval. A currently licensed organization may not obtain an exemption permit, but may once it is no longer licensed to perform lawful gambling. Minn. star. § 349.213. Cities may require organizations that conduct exempted lawful gambling to See Section VII — A - Local permits. obtain local permits. The fee for a local permit may not exceed $100. League of Minnesota Cities Information Memo: 7/13/2012 Lawful Gambling Page 12 RELEVANT LINKS: Minn. Stat. § 349.213 See LMC sample ordinance regulating lawful gambling. Minn. Star. § 349.213 Minn. Star. § 349.166. See Appendix A - application for premises permit. Appendix B - resolution approving the permit. Appendix C - resolution denying the permit. Minn. Star. § 349.16, subd. 8 Minn. Stat. § 349.213, subd. I(h). Minn. Star. § 349.213, subd. 1(b). Section VI — Exclusions and exemptions. Minn. Star. § 349.213, subd. 1(d). VII. Local regulation While cities may not require state - licensed lawful gambling organizations to obtain local gambling licenses or permits, state law does provide cities the authority to regulate lawful gambling. Cities may adopt gambling regulations that are more stringent than state law or prohibit lawful gambling altogether. A city could restrict the conduct of lawful gambling to certain hours or certain days of the week. A city could prohibit licensed organizations from employing non - members and limit the prizes to be awarded. Cities are specifically authorized to: • Require a local permit for the conduct of gambling exempt from state licensing requirements. • Require organizations to make specific expenditures of up to 10 percent of the net profit from lawful gambling. • Require organizations to contribute 10 percent of the net profit from lawful gambling to a fund administered by the city. • Require an organization to expend all or a portion of its expenditures within the cities trade area. • Charge an investigation fee or impose a gambling tax. A more stringent regulation or prohibition must apply equally to all forms of gambling within the jurisdiction, with one exception: paddlewheels. A city may exclusively prohibit the use of paddlewheels within its jurisdiction. A. Local permits Cities may require a local permit for the conduct of lawful gambling exempt from state licensing requirements. The fee for a local permit may not exceed $100. B. Specific expenditures Cities may require organizations to make specific expenditures of up to 10 percent of net profits derived from lawful gambling, but must be careful when enacting such a regulation. Requiring specific expenditures may violate the U.S. Constitution, particularly when the city designates too specific a cause, and approval of a gambling license or permit is conditional on the organization abiding by the regulation. League of Minnesota Cities Information Memo: 7/13/2012 Lawful Gambling Page 13 RELEVANT LINKS: U.S. Const. amend. 1. The First Amendment prohibits any level of government from making laws NAACP v. Alabama, 357 U.S. 449,78 S.Ct. 1163 (1958 ). that abridge the freedom of speech or the right of people to peaceably Wooley v. Maynard, 430 U.S. assemble. The Supreme Court has held that the First Amendment implies 705, 97 S.Ct. 1428 (1977). that people shall have a right to freedom of association. The First Amendment also provides some protections from compelled association (requiring an individual to support ideals or beliefs with which he or she disagrees). rnt7Assn of Machinists v. Compelling an individual to support an organization or cause that he or she Street, 367 U.S. 740, 81 S.Ct. 1784 (1961). does not agree with is an infringement of that person's First Amendment rights. It is improper for a city to condition the granting of a benefit (approval of a lawful gambling operation) on the recipient's relinquishment of a constitutional right (freedom of association). Therefore, a municipal regulation that places a condition for the approval of a gambling license on the organization contributing to a cause it may not support is subject to challenge on constitutional grounds. Cities should use caution and work with their city attorney before requiring specific expenditures from gambling organizations. C. City- administered funds Minn. Stat. § 349.213, subd. A city may accept donations from a gambling organization, but may not 1(fl. require a donation as a condition of license approval or permit issuance. A Annual Report -10% Lawful city can by ordinance require organizations to contribute up to 10 percent Gambling Contribution Fund. per year of their net profits derived from lawful gambling to a fund See LMC sample ordinance administered by the city. A report must be submitted to the Board by March regulating lawful gambling. 15 of each year. Minn. Star. § 349.12, subd. The city may only disburse the funds for charitable contributions. Therefore, 7a. although a city may not require direct payments from a gambling organization to any city department, a city can establish a fund and disburse Minn. Star. § 349.12, subd. 25(10 ). the proceeds of that fund to a city department for lawful purposes, such as a city park system. No direct contributions or payments of gambling money may be made to a law enforcement or prosecutorial agency. D. Trade areas Minn. Star. § 349.213, subd. A city may by ordinance require those organizations conducting lawful l(g)• gambling within its jurisdiction to expend all or a portion of their See LMC sample ordinance expenditures on lawful purposes conducted or located within a city's trade regulating lawful gambling. area. The ordinance must define the trade area. A city's trade area must include every city and township contiguous to the defining city. The ordinance must also specify the percentage of expenditures an organization must make within the trade area. League of Minnesota Cities Information Memo: 7/1312012 Lawful Gambling Page 14 RELEVANT LINKS: League of Minnesota Cities Information Memo: 7/1312012 Lawful Gambling Page 15 E. Investigation fees Minn. Stat. § 349.16, subd. s. A city may assess an annual investigation fee on organizations that apply for state - issued premises permits or otherwise conduct lawful gambling operations within the jurisdiction. The fee may not exceed: • $500 in cities of the first class. • $250 in cities of the second class. • $100 in all other cities. Minn. Stat. § 349.213, subd. Cities that charge an investigation fee may not impose a local gambling tax. 3. F. Local gambling tax Minn. Stat. § 297E.02. Minn. Stat. § 349.213, subd. With certain exceptions, the state generally levies an 8.5 percent tax on 3. lawful gambling. A city may impose a local gambling tax on licensed organizations of up to 3 percent per year of the gross receipts from gambling, less prizes actually paid out. The tax must only raise the revenue necessary to cover the cost of regulating lawful gambling. A city may not use these tax revenues for any other purpose. Thus, if regulating lawful gambling only costs the city an amount equal to 2.5 percent of the gambling revenues, then the city may only impose a tax of 2.5 percent, not the 3 percent maximum. Lawful Gambling Regulatory Tax Annual Report. The city must file an annual report with the Board by March 15 showing the amount of revenue raised by the tax and the use of the tax proceeds. Copies of the required form are available from the Board. All documents pertaining to local site inspections, fines, penalties or other corrective actions must be shared with the Board within 30 days of filing. Minn. Stat. § 349.213, subd. If a city imposes a gambling tax, it may not assess an investigation fee 3. against lawful gambling organizations. VIII. Gambling in the municipal liquor store Many cities lease space in the municipal liquor store to lawful gambling organizations because of the additional business and revenue gambling can draw. However, allowing gambling in the municipal liquor store raises a number of questions that should be resolved before city property is used for lawful gambling. League of Minnesota Cities Information Memo: 7/1312012 Lawful Gambling Page 15 RELEVANT LINKS: League of Minnesota Cities Information Memo: 7/1312012 Lawful Gambling Page 16 A. Lease Minn. Stat. § 349.18. State law generally restricts gambling to premises owned or leased by the Minn. Stat. § 412.221. Penn -O -Tex Oil Co. v. City of licensed organization, although exceptions are provided for raffles and other Minneapolis, 207 Minn. 307, lawful gambling that is conducted in conjunction with fairs and other civic 291 N.W. 131 (1940). Minn. R. 7861.0240. celebrations. Cities have the authority to lease city -owned property to Lease for Lawful Gambling private parties when the property is not needed for municipal purposes. Activity. Because of the limited space required, a city may lease space in the municipal liquor store to gambling organizations. Leases must be in the form prescribed by the Board. B. Rent Minn. Stat. § 349.18, subd. 1. State law regulates the rent that may be charged for a premises that is leased Worksheet for Calculating for lawful gambling. The lease must generally set forth all obligations Lawful Gambling Monthly between the city and the organization. Amounts paid as rent under lawful Rent. gambling leases are all- inclusive and, unless specifically and separately approved by the Board, will cover all matters such as electric, heat, and cleaning services, as well as the cost of any communications network or service required for electronic pull tabs and electronic bingo. The lease will not become effective until approved by the Board. The city should consult the city attorney before agreeing to lease space in a municipal liquor store to a gambling organization. The regulations may be broadly separated into four classifications: booth operations, bar operations, booth and bar operations, and bingo premises. 1. Booth operations Minn. Stat. § 349.12, subd. A "booth operation" is a method of selling and redeeming disposable 6a. gambling equipment by an employee of a licensed organization on the 2012 Minn. Laws ch. 299, arc. premises that the lawful gambling organization leases or owns. Monthly rent 4, § 56 amending Minn. Stat. § 349.18, subd. 1(b)(1). for a booth operation may not exceed 10 percent of gross profits for that month. However, the maximum combined rent for all organizations conducting lawful gambling on the premises may not exceed $1,750 per month. 2. Bar operations Minn. Stat. § 349.12, subd. A "bar operation" is a method of selling and redeeming disposable gambling 3b. 2012 Minn. Laws ch. 299, art. equipment by an employee of the lessor within a leased premises which is 4, § 56 amending Minn. Stat. licensed for the on -sale of alcoholic beverages. Monthly rent may not § 349.18, subd. 1(b)(2). exceed: League of Minnesota Cities Information Memo: 7/1312012 Lawful Gambling Page 16 RELEVANT LINKS: League of Minnesota Cities Information Memo: 7/1312012 Lawful Gambling Page 17 • Fifteen percent of the gross profit from electronic pull -tabs and electronic bingo for that month. • More than 20 percent of gross profits from all other forms of lawful gambling. 3. Booth and bar operations 2012 Minn. Laws ch. 299, art. For electronic linked bingo and electronic pull -tabs that are operated for 4, § 56 amending Minn. Stat. § 349.18, subd. 1(b)(3). separate time periods within a business day by a nonprofit organization and the lessor, monthly rent may be no more than: • Fifteen percent of the monthly gross profits for the time periods operated by the lessor (the lessor is also responsible for any cash shortages that occur during these periods of operation). • Ten percent of the monthly gross profits for the time periods operated by the lawful gambling organization (the lawful gambling organization is responsible for cash shortages during these periods of operation). 4. Bingo 2012 Minn. Laws ch. 299, art. Rent paid by an organization for premises leased primarily for the conduct 4, § 56 amending Minn. Stat. § 349.18, subd. I(b)(4). of bingo is restricted to either one of the following: • Not more than 10 percent of the monthly gross profit from all lawful gambling activities held during bingo occasions. • At a rate based on a cost per square foot for leased space as approved by the director of the Gambling Control Board. Minn. Stat. § 349.18, subd. No rent may be charged for "bar" bingo. 1(b)(5) C. City employees Organizations that conduct lawful gambling may request that city employees sell pull -tabs from behind the bar at a municipal liquor store. This arrangement may benefit both the organization and the municipality. However, whether city employees can lawfully participate in such activity is open to debate. Minn. Stat. § 340A.601. The case can certainly be made that municipal liquor store employees can A.G. Op. 218 -R (Sept. 26, sell pull -tabs from behind the bar. State law allows on -sale municipal liquor 1978 ). stores to sell any item that may lawfully be sold at an establishment with an Minn. Stat. § 349.18. on -sale liquor license. In a 1978 opinion, the attorney general indicated a city may operate a liquor store in the same manner as a private proprietor. Since employees of licensed, private on -sale liquor stores may sell pull -tabs from behind the bar, the argument can be made that city employees are also authorized to sell pull -tabs from behind the bar. League of Minnesota Cities Information Memo: 7/1312012 Lawful Gambling Page 17 RELEVANT LINKS: LMC information memo, Public Purpose Expenditures. The League of Minnesota Cities does not recommend allowing city liquor store employees to sell pull -tabs. The city pays these employees and provides for other employment- related costs, such as workers' compensation. If city employees sell pull -tabs, they devote city -paid time to the benefit of a private organization and may be violating the constitutional requirement that all city expenditures be for a public purpose. Cities should consult their city attorneys before authorizing municipal liquor store employees to sell pull -tabs. Minn. Stat. § 349.168. If the gambling organization compensates the employees, those individuals must register on a form prescribed by the Board. Registered employees must wear an identification card whenever they conduct lawful gambling for compensation. Minn. Stat. § 349.168, suba. An organization that leases a premises for lawful gambling may not pay s(c). compensation to the lessor, a member of the lessor's immediate family, or to the lessor's employees other than as a seller of pull -tabs and tipboards within a booth operation on the premises. IX. High school raffles Minn. Stat. § 609.761, suba. School districts, or nonprofit organizations created primarily to support the s. programs of a school district, may conduct raffles i£ • Raffle tickets are sold and a drawing is conducted only at a high school event sponsored by the school district. • All raffle tickets are sold for the same price. • Raffle tickets are sold only to people 18 years of age or older attending the event. • The drawing is held during or immediately after the conclusion of the event. • Half the gross receipts from the sale of tickets are awarded as prizes for the raffle, and the remaining half may only be used to defray the school district's costs of sending event participants to high school activities held at other locations. Minn. Stat. § 609.761, subd. s(s). If a school district's (or nonprofit's) gross receipts from the conduct of raffles exceeds $12,000 in a calendar year or $5,000 in a single raffle, it must report the gross receipts received, the total expenses, total prizes, and an accounting of expenditures to the Board annually. Because high school raffles are outside the lawful gambling chapter, and state law dedicates all of the receipts to specific purposes, cities probably do not have authority to regulate these activities. Cities that wish to regulate gambling conducted at high school events should consult their city attorney. League of Minnesota Cities Information Memo: 7/13/2012 Lawful Gambling Page 18 RELEVANT LINKS: it should contact Alcohol and Gambling Enforcement. League of Minnesota Cities Information Memo: 7/13/2012 Lawful Gambling Page 19 X. Liquor raffles Minn. stat. § 340A.707. A nonprofit organization conducting a silent auction, raffle, or other fundraising event may conduct live, on- premises auctions or raffles of wine, beer, or intoxicating liquors—provided that the funds from the auction or raffle are dedicated to the charitable purposes of the nonprofit organization, that such auctions or raffles are limited to not more than six occasions per year, and that the alcohol may only be auctioned or raffled to persons who demonstrate they are 21 years of age or older and do not show signs of obvious intoxication. An organization that intends to award a liquor prize as part of a raffle must qualify as a nonprofit under Minnesota Statutes and Rules, and would be subject to the same local and state regulations as any other raffle. Cities with questions concerning their role regulating these events should consult their city attorney or the state Alcohol and Gambling Enforcement Division. XI. Enforcement Lawful gambling benefits cities by providing entertainment for citizens and raising revenues to support worthy purposes. However, because of the large sums of money involved in lawful gambling, there is great potential for unlawful activity. Illegal gambling activity could result in loss of faith in the integrity of lawful gambling, defrauded citizens and organizations, and even organized crime. Cities must work with lawful gambling organizations and state agencies to ensure lawful gambling continues to have a positive impact upon the community. Gambling control Board. The Legislature created the Gambling Control Board to maintain the integrity of lawful gambling through licensing and regulation. A city that believes an organization conducting lawful gambling is not complying with the lawful gambling laws should contact the Board for assistance. Department of Public Safety's Alcohol and The Department of Public Safety's Alcohol and Gambling Enforcement Gambling Enforcement Division investigates allegations of criminal conduct related to all forms of Division. gambling. If a city suspects that criminal gambling laws are being violated, it should contact Alcohol and Gambling Enforcement. League of Minnesota Cities Information Memo: 7/13/2012 Lawful Gambling Page 19 Appendix A: Application for a Local Gambling Permit Before using this sample, a city should be familiar with the contents of the League of Minnesota Cities information memo, Lawful Gambling, (July 2012). When using this form as a template, insert appropriate city - specific language where indicated and remove all explanations provided for your reference. A city wishing to use this sample should review it with the city attorney to determine if it is suited to the city's circumstances. Because this sample implicates state and federal law, the city attorney should review any modifications to ensure they conform to current law. Additional samples may be available through the LMC Research and Information Service upon request. SAMPLE APPLICATION LOCAL GAMBLING PERMIT Date of Application: Name: City of Application for Local Gambling Permit Applicant Information (Last) (First) (Middle) Address: (Street) (City) Telephone: O - Fee Paid: Title: (State) (Zip Code) League of Minnesota Cities Information Memo: 7/13/2012 Lawful Gambling Page 20 Name: Address: (Street) Telephone () - Address: Organization Information (City) (State) (Zip Code) Proposed Location (Street) (City) (State) (Zip Code) If the Organization does not own the facility: Property Owner: Address: Telephone: O (Attach a copy of the rental or leasing arrangement to the application) (Over) Name and address of any officer /person who will account for receipts, expenses, and profits for the event: League of Minnesota Cities Information Memo: 7/13/2012 Lawful Gambling Page 21 Description of the gambling activities to be conducted (include days & hours and estimated value of prizes to be awarded): Provide any relevant information supporting the organization's exclusion or exemption from state licensing requirements and eligibility for a local gambling permit (Minn. Stat. § 349.166): I hereby certify that all statements made in this application are true and complete to the best of my knowledge. I understand that any misstatements or omissions may result in a denial of my application. I authorize the city to investigate the information provided and contact the persons or organizations listed in this application. The undersigned agrees that the gambling event will, if approved, conform to all applicable state and local regulations. Applicant (please print): Signature: League of Minnesota Cities Information Memo: Lawful Gambling Date: 7/13/2012 Page 22 Appendix B: Resolution Approving a Premises Permit Before using this sample, a city should be familiar with the contents of the League of Minnesota Cities information memo, Lawful Gambling, (July 2012). When using this form as a template, insert appropriate city - specific language where indicated and remove all explanations provided for your reference. A city wishing to use this sample should review it with the city attorney to determine if it is suited to the city's circumstances. Because this sample implicates state and federal law, the city attorney should review any modifications to ensure they conform to current law. Additional samples may be available through the LMC Research and Information Service upon request. SAMPLE RESOLUTION APPROVING A PREMISES PERMIT RESOLUTION NO. WHEREAS, the City Council of the City of to be issued within the city; allows gambling licenses NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of that _(organization's name)_ request for a premises permit at _(address of premises)_ hereby be approved. Adopted this day of MAYOR CITY OF ATTEST CITY CLERK League of Minnesota Cities Information Memo: 7/13/2012 Lawful Gambling Page 23 Appendix C: Resolution Denying a Premises Permit Before using this sample, a city should be familiar with the contents of the League of Minnesota Cities information memo, Lawful Gambling, (July 2012). When using this form as a template, insert appropriate city - specific language where indicated and remove all explanations provided for your reference. A city wishing to use this sample should review it with the city attorney to determine what is best suited to the city's circumstances. Because this sample implicates state and federal law, the city attorney should review any modifications to ensure they conform to current law. Additional samples may be available through the LMC Research and Information Service upon request. SAMPLE RESOLUTION DENYING A PREMISES PERMIT RESOLUTION NO. WHEREAS, Ordinance No. allows lawful gambling to be conducted at only one premises within the City of ; WHEREAS, lawful gambling would be conducted at more than one premises within the City of if the Council approved _(organization's name)_ request for a premises permit; Comment: This is an example provided for illustrative purposes. A city denying a request for a premises permit should use WHEREAS clauses to list the reasons why the premises permit is being denied. Reasons for denial should be stated in the city's gambling ordinance. Cities should consult the city attorney before denying a premises permit. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of that _(organization's name)_ request for a premises permit at _(address of premises)_ hereby be denied. Adopted this day of League of Minnesota Cities Information Memo: 7/13/2012 Lawful Gambling Page 24 MAYOR CITY OF ATTEST CITY CLERK League of Minnesota Cities Information Memo: 7/13/2012 Lawful Gambling Page 25 LEAGUE OF MINNESOTA CITIES SAMPLE ORDINANCE REGULATING LAWFUL GAMBLING (June 2012) Before adopting this ordinance, a city should be familiar with the contents of the LMC information memo "Lawful Gambling" LMC 255.7 (June 2012). INTRODUCTION AND INSTRUCTIONS: This sample lawful gambling ordinance contains a number of provisions a city may want to adopt. A city wishing to adopt this ordinance should review it with the city attorney to determine which provisions are suited to the city's circumstances. A city can modify this ordinance by eliminating provisions that concern activities it does not seek to regulate. Because most of the provisions of this ordinance are controlled by statute, the city attorney should review any modifications to ensure they conform with state law. In addition, the city attorney should review the entire ordinance before it is adopted because it establishes rights and responsibilities of both the city and the license applicants and holders. This sample ordinance is drafted in the form prescribed by Minn. Stat. § 412.191, subd. 4, for statutory cities. Home rule charters often contain provisions concerning how the city may enact ordinances. Home rule charter cities should consult their charter and city attorney to ensure that the city complies with all charter requirements. This ordinance will affect existing gambling licenses. Therefore, a copy of the proposed ordinance should be mailed to each licensee to inform the licensees of its contents and provide them an opportunity to make their views known. If your city has codified its ordinances, a copy of any lawful gambling ordinance must be furnished to the county law library or its designated depository pursuant to Minn. Stat. § 415.021. ORDINANCE NO. AN ORDINANCE AUTHORIZING AND REGULATING THE CONDUCT OF LAWFUL GAMBLING WITHIN THE CITY OF , MINNESOTA THE CITY COUNCIL OF THE CITY OF DOES ORDAIN: SECTION 1. ADOPTION OF STATE LAW BY REFERENCE The provisions of Minn. Stat. ch. 349, as they may be amended from time to time, with reference to the definition of terms, conditions of operation, provisions relating to sales, and all other matters pertaining to lawful gambling are hereby adopted by reference and are made a part of this ordinance as if set out in full. It is the intention of the Council that all future amendments of Minn. Stat. ch. 349, are hereby adopted by reference or referenced as if they had been in existence at the time this ordinance was adopted. SECTION 2. CITY MAY BE MORE RESTRICTIVE THAN STATE LAW The Council is authorized by the provisions of Minn. Stat. § 349.213, as it may be amended from time to time, to impose, and has imposed in this ordinance, additional restrictions on gambling within its limits beyond those contained in Minn. Stat. ch. 349, as it may be amended from time to time. SECTION 3. PURPOSE The purpose of this ordinance is to regulate lawful gambling within the City of , to prevent its commercialization, to insure the integrity of operations, and to provide for the use of net profits only for lawful purposes. SECTION 4. DEFINITIONS In addition to the definitions contained in Minn. Stat. § 349.12, as it may be amended from time to time, the following terms are defined for purposes of this ordinance: BOARD, as used in this ordinance, means the State of Minnesota Gambling Control Board. CITY, as used in this ordinance, means the City of COUNCIL, as used in this ordinance, means the City Council of the City of LICENSED ORGANIZATION, as used in this ordinance, means an organization licensed by the Board. LOCAL PERMIT, as used in this ordinance, means a permit issued by the city. TRADE AREA, as used in this ordinance, means Comment.• The city must define the boundaries of its trade area by ordinance pursuant to Minn. Stat. § 349.213, subd. I (g). The city's trade area must include each city and township contiguous to the defining city. SECTION 5. APPLICABILITY This ordinance shall be construed to regulate all forms of lawful gambling within the city except bingo conducted within a nursing home or a senior citizen housing project or by a senior citizen organization if the prizes for a single bingo game do not exceed $10, total prizes awarded at a single bingo occasion do not exceed $200, no more than two bingo occasions are held by the organization or at the facility each week, only members of the organization or residents of the nursing home or housing project are allowed to play in a bingo game, no compensation is paid for any persons who conduct the bingo, and a manager is appointed to supervise the bingo. Comment.• The city should be aware of cross - reference problems in Minn. Stat. § 349.166 that make it a little unclear whether cities can regulate excluded lawful gambling. Cities should consult the city attorney for an opinion on this issue. SECTION 6. LAWFUL GAMBLING PROHIBITED No person or organization shall conduct lawful gambling within the City of Comment: This section should be adopted only if the city wishes to completely prohibit lawful gambling. If the city adopts this section, it should also adopt Sections 19 -21, and omit Sections 7 -18. SECTION 7. LAWFUL GAMBLING PERMITTED Lawful gambling is permitted within the city provided it is conducted in accordance with Minn. Stat. §§ 609.75 -.763, inclusive, as they may be amended from time to time; Minn. Stat. §§ 349.11 -.23, inclusive, as they may be amended from time to time; and this ordinance. SECTION 8. COUNCIL APPROVAL Lawful gambling authorized by Minn. Stat. §§ 349.11 -.23, inclusive, as they may be amended from time to time, shall not be conducted unless approved by the Council, subject to the provisions of this ordinance and state law. SECTION 9. APPLICATION AND LOCAL APPROVAL OF PREMISES PERMITS Subd. 1. Any organization seeking to obtain a premises permit from the Board shall file with the city clerk an executed, complete duplicate application, together with all exhibits and documents accompanying the application as will be filed with the Board. Subd. 2. Upon receipt of an application for issuance of a premises permit, the city clerk shall transmit the application to the chief of police for review and recommendation. Comment: Some cities do not have their own police services. Under these circumstances, the county sheriff may be willing to conduct an investigation for a fee. In that case, the ordinance should state that the clerk shall transmit the application to the county sheriff, as well as replace "chief of police " with "county sheriff" throughout the body of the ordinance. Subd. 3. The chief of police shall investigate the matter and make the review and recommendation to the City Council as soon as possible, but in no event later than 45 days following receipt of the notification by the city. Subd. 4. Organizations applying for a state - issued premises permit shall pay the city a $ investigation fee. This fee shall be refunded if the application is withdrawn before the investigation is commenced. If approved by the City Council and the Board, a licensed organization will be responsible for an annual investigative fee for conducting lawful gambling within the city. Comment: The fee may not exceed $100 for third and fourth class cities; $250 for cities of the second class; $500 for first class cities. Minn. Stat. § 349.16, subd. 8. A city may not charge an investigation fee if it levies a gambling tax. Minn. Stat. § 349.213, subd. 3. Subd. 5. The applicant shall be notified in writing of the date on which the Council will consider the recommendation. Subd. 6. The Council shall receive the police chief's report and consider the application within 45 days of the date the application was submitted to the city clerk. Subd. 7. The Council shall by resolution approve or disapprove the application within 60 days of receipt of the application. Comm ent.• Under Minn. Stat. § 349.213, subd. 2, the resolution must have been adopted within 90 days of the date of the application for the new or renewed permit to the Board. However, because the application for a state - issued premises permit includes an acknowledgement of local approval within its application materials, it is the responsibility of the applicant (and not the city) to meet those statutory requirements. The model ordinance requires Council action in 60 days to ensure that the resolution will be passed in a timely manner, but is not specifically required by law. Subd. 8. The Council shall deny an application for issuance or renewal of a premises permit for any of the following reasons: Comment: These are sample conditions that other cities have adopted. Cities may want to adopt more, fewer, or different conditions depending on their circumstances. (i) Violation by the gambling organization of any state statute, state rule, or city ordinance relating to gambling within the last three (3) years. (ii) Violation by the on -sale establishment or organization leasing its premises for gambling of any state statute, state rule, or city ordinance relating to the operation of the establishment, including, but not limited to, laws relating to alcoholic beverages, gambling, controlled substances, suppression of vice, and protection of public safety within the last three (3) years. (iii) Lawful gambling would be conducted at premises other than those for which an on -sale liquor license has been issued. (iv) Lawful gambling would be conducted at more than premises within the city. Comment: Cities may use this provision to limit the number ofpremises where lawful gambling may be conducted. (v) An organization would be permitted to conduct lawful gambling activities at more than one (1) premises in the city. (vi) More than one licensed organization would be permitted to conduct lawful gambling activities at one (1) premises. (vii) Failure of the applicant to pay the investigation fee provided by Subdivision 4 within the prescribed time limit. Comment: The city should not make this a condition if it does not charge an investigation fee. (viii) Operation of gambling at the site would be detrimental to health, safety, and welfare of the community. Otherwise, the Council shall pass a resolution approving the application. SECTION 10. LOCAL PERMITS Subd. 1. No organization shall conduct lawful gambling excluded or exempted from state licensure requirements by Minn. Stat. § 349.166, as it may be amended from time to time, without a valid local permit. This section shall not apply to lawful gambling exempted from local regulation by Section 5 of this ordinance. Subd. 2. Applications for issuance or renewal of a local permit shall be on a form prescribed by the city. The application shall contain the following information: (i) Name and address of the organization requesting the permit. (ii) Name and address of the officers and person accounting for receipts, expenses, and profits for the event. (iii) Dates of gambling occasion for which permit is requested. (iv) Address of premises where event will occur. (v) Copy of rental or leasing arrangement, if any, connected with the event, including rent to be charged to the organization. (vi) Estimated value of prizes to be awarded. Subd. 3. The fee for a local permit shall be $100. The fee shall be submitted with the application for a local permit. This fee shall be refunded if the application is withdrawn before the investigation is commenced. Comment: The local permit fee is authorized by Minn. Stat. § 349.213. The fee for a permit may not exceed $100. Subd. 4. Upon receipt of an application for issuance or renewal of a local permit, the city clerk shall transmit the notification to the chief of police for review and recommendation. Subd. 5. The chief of police shall investigate the matter and make review and recommendation to the City Council as soon as possible, but in no event later than 45 days following receipt of the notification by the city. Subd. 6. The applicant shall be notified in writing of the date on which the Council will consider the recommendation. Subd. 7. The Council shall receive the public safety department's report and consider the application within 45 days of the date the application was submitted to the city clerk. Subd. 8. The Council shall deny an application for issuance or renewal of a premises permit for any of the following reasons: Comment: These are sample conditions that other cities have adopted. Cities may want to adopt more, fewer, or different conditions depending on their circumstances. (i) Violation by the gambling organization of any state statute, state rule, or city ordinance relating to gambling within the last three (3) years. (ii) Violation by the on -sale establishment, or organization leasing its premises for gambling, of any state statute, state rule, or city ordinance relating to the operation of the establishment, including, but not limited to, laws relating to the operation of the establishment, laws relating to alcoholic beverages, gambling, controlled substances, suppression of vice, and protection of public safety within the last three (3) years. (iii) The organization has not been in existence in the city for at least three (3) consecutive years prior to the date of application. (iv) The organization does not have at least thirteen (13) active and voting members. (v) Exempted or excluded lawful gambling will not take place at a premises the organization owns or rents. (vi) Exempted or excluded lawful gambling will not be limited to a premises for which an on- sale liquor license has been issued. (vii) Exempted or excluded lawful gambling will occur at more than premises within the city. (viii) An organization will have a permit to conduct exempted or excluded lawful gambling activities on more than one (1) premises in the city. (ix) More than one licensed, qualified organization will be conducting exempted or excluded lawful gambling activities at any one (1) premises. (x) Failure of the applicant to pay the permit fee provided by subdivision 3 within the prescribed time limit. (xi) Operation of gambling at the site would be detrimental to health, safety, and welfare of the community. Otherwise the Council shall approve the application. Subd. 9. Local permits shall be valid for one (1) year after the date of issuance unless suspended or revoked. SECTION 11. REVOCATION AND SUSPENSION OF LOCAL PERMIT Subd. 1. A local permit may be revoked or temporarily suspended for a violation by the gambling organization of any state statute, state rule, or city ordinance relating to gambling. Subd. 2. A license shall not be revoked or suspended until written notice and an opportunity for a hearing have first been given to the permitted person. The notice shall be personally served or sent by certified or registered mail. If the person refuses to accept notice, notice of the violation shall be served by posting it on the premises. Notice shall state the provision reasonably believed to be violated and shall also state that the permitted person may demand a hearing on the matter, in which case the permit will not be suspended until after the hearing is held. If the permitted person requests a hearing, the Council shall hold a hearing on the matter at least one week after the date on which the request is made. If, as a result of the hearing, the Council finds that an ordinance violation exists, then the Council may suspend or revoke the permit. SECTION 12. LICENSE AND PERMIT DISPLAY All permits issued under state law or this ordinance shall be prominently displayed during the permit year at the premises where gambling is conducted. SECTION 13. NOTIFICATION OF MATERIAL CHANGES TO APPLICATION An organization holding a state - issued premises permit or a local permit shall notify the city within ten (10) days in writing whenever any material change is made in the information submitted on the application. SECTION 14. LOCAL GAMBLING TAX Subd. 1. A local gambling tax of _percent per year is imposed on the gross receipts of a licensed organization from all lawful gambling less prizes actually paid out by the organization. Comment: The tax may be imposed only in the amount necessary to cover the costs incurred by the city to regulate lawful gambling. Three percent (3%) is the maximum gambling tax a city may impose. A city may not charge an investigation fee if it levies a gambling tax. If a city imposes a lawful gambling tax it must file annually, by March 15, a report, with the Board showing (1) the amount of revenue produced by the tax during the preceding year, and (2) the use of proceeds of the tax. The report must be on a form prescribed by the Board. Minn. Stat. § 349.213, subd. 3. Subd. 2. The tax shall be paid by the organization on a monthly basis and shall be reported on a copy of the monthly gambling activity summary and tax return filed with the Minnesota Department of Revenue. The report shall be an exact duplicate of the report filed with the Department, without deletions or additions, and must contain the signatures of organization officials as required on the report form. Subd. 3. The tax return and payment of the tax due must be postmarked, or, if hand - delivered, received in the office of the city clerk, on or before the last business day of the month following the month for which the report is made. Subd. 4. An incomplete tax return will not be considered timely filed unless corrected and returned by the due date for filing. Subd. 5. Interest shall be charged at a rate of eight percent (8 %) on all overdue taxes owed by the organization under this Section. SECTION 15. CONTRIBUTION OF NET PROFITS TO FUND ADMINISTERED BY CITY Subd. 1. Each organization licensed to conduct lawful gambling within the city pursuant to Minn. Stat. § 349.16, as it may be amended from time to time, shall contribute ten percent (10 %) of its net profits derived from lawful gambling in the city to a fund administered and regulated by the city without cost to the fund. The city shall disburse the funds for charitable contributions as defined by Minn. Stat. § 349.12, subd. 7a, as it may be amended from time to time. Comment: Under Minn. Stat. § 349.213, cities may require organizations conducting lawful gambling within the city to contribute ten percent (10%) of their net profits derived from lawful gambling to a fund administered and regulated by the city. The city may disburse the funds for lawful purposes. Lawful purposes for which these funds may be expended are listed in Minn. Stat. § 349.12, subd. 25. Cities may also expend these funds for police, fire, and other emergency or public safety - related services, equipment, and training, excluding pension obligations. A city making expenditures authorized under this paragraph must by March 15 of each year file a report with the Board, on a form the Board prescribes, that lists all such revenues collected and expenditures for the previous calendar year. Minn. Stat. § 349.213, subd. 1(l)(2). Subd. 2. Payment under this section shall be made on the last day of each month. Subd. 3. The city's use of such funds shall be determined at the time of adoption of the city's annual budget or when the budget is amended. SECTION 16. DESIGNATED TRADE AREA Subd. 1. Each organization licensed to conduct gambling within the city shall expend one hundred percent (100 %) of its lawful purpose expenditures on lawful purposes conducted within the city's trade area. Comment: A city may require that a licensed organization conducting lawful gambling within its jurisdiction expend all or a portion of its expenditures for lawful purposes conducted or located within the city's trade area. The percentage that the city requires to be spent within the trade area must be specified in the ordinance defining the trade area. Minn. Stat. § 349.213, subd. 1(g). Subd. 2. This section applies only to lawful purpose expenditures of gross profits derived from gambling conducted at a premises within the city's jurisdiction. SECTION 17. RECORDS AND REPORTING Subd. 1. Organizations conducting lawful gambling shall file with the city clerk one copy of all records and reports required to be filed with the Board, pursuant to Minn. Stat. ch. 349, as it may be amended from time to time, and rules adopted pursuant thereto, as they may be amended from time to time. The records and reports shall be filed on or before the day they are required to be filed with the Board. Subd. 2. Organizations licensed by the Board shall file a report with the city proving compliance with the trade area spending requirements imposed by Section 16. Such report shall be made on a form prescribed by the city and shall be submitted annually. SECTION 18. HOURS OF OPERATION Lawful gambling shall not be conducted between 1 a.m. and 8 a.m. on any day of the week. Comment: Cities may regulate hours and days of operation pursuant to Minn. Stat. § 349.213. A city with a 2 a.m. closing time for on -sale liquor stores could use 2 a.m. instead of 1 a.m. SECTION 19. PENALTY Any person who violates any provision of this ordinance; Minn. Stat. § § 609.75- 609.763, inclusive, as they may be amended from time to time; or Minn. Stat. § § 349.11- 349.21, as they may be amended from time to time; or any rules promulgated under those sections, as they may be amended from time to time, shall be guilty of a misdemeanor and subject to a fine of not more than $1,000 or imprisonment for a term not to exceed 90 days, or both, plus in either case the costs of prosecution. In addition, violations shall be reported to the Board and recommendation shall be made for suspension, revocation, or cancellation of an organization's license. SECTION 20. SEVERABILITY If any provision of this ordinance is found to be invalid for any reason by a court of competent jurisdiction, the validity of the remaining provisions shall not be affected. SECTION 21. EFFECTIVE DATE This ordinance becomes effective on the date of its publication, or upon the publication of a summary of the ordinance as provided by Minn. Stat. § 412.191, subd. 4, as it may be amended from time to time, which meets the requirements of Minn. Stat. § 331A.01, subd. 10, as it may be amended from time to time. Passed by the Council this day of Mayor Attested: Clerk Municode Page 1 of 4 Maple Grove, Minnesota, Code of Ordinances >> - CODE OF ORDINANCES >> Chapter 10 - BUSINESSES AND LICENSING >> ARTICLE VI. - LAWFUL GAMBLING >> ARTICLE VI. - LAWFUL GAMBLING Sec. 10 -151. - Definitions. Sec. 10 -152. - Penalty. Sec. 10 -153. - Adoption of state statutes and rules. Sec. 10 -154. - Permitted gambling. Sec. 10 -155. - Conduct of gambling; contribution to city: local gambling tax. Sec. 10 -156. -Authorized organizations. Secs. 10- 157 -10 -180. - Reserved. Sec. 10 -151. - Definitions. (a) The terms used in this article and defined in Minn. Stats. §§ 349.11- 349.22, and defined in the rules adopted pursuant to the authority contained in such statutes, shall have the meanings set forth in such statutes and rules. (b) The following words, terms and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning: Gambling means any activity or device prohibited by Minn. Stats. §§ 609.75, 609.755, and 609.76, and shall further include any activity, event, or contrivance that simulates any such activity or device when in or on any commercial establishment or property, except as otherwise allowed pursuant to city ordinance or state statutes, or rules adopted pursuant to authority contained therein. Prohibited gambling and gambling simulations include, but are not limited to, sports bookmaking, poker, blackjack, slot machines, and other similar activities, events and contrivances normally associated with gambling and gambling locations. (Code 1984, § 416:00) Cross reference— Definitions generally, § 1 -2. Sec. 10 -152. - Penalty. Any person who violates a provision of this article or the statutes or rules adopted by reference in this article shall be guilty of a misdemeanor and, upon conviction, shall be punished in accordance with section 1 -13. (Code 1984, § 416:20) Sec. 10 -153. - Adoption of state statutes and rules. The provisions of Minn. Stats. §§ 349.11- 349.22, and rules adopted pursuant to the authority contained in such statutes, are hereby adopted by reference and are incorporated in this article as completely as if set out in full. (Code 1984, § 416:15) http: / /library.municode.com /print. aspx ?h= &clientID= 13556 &HTMRequest= http %3 a %2£.. 2/21/2013 Municode Page 2 of 4 Sec. 10 -154. - Permitted gambling. (a) There shall be no gambling in the city except bingo, raffle games, paddle wheel, and pull - tabs duly licensed or otherwise allowed pursuant to the provisions of this article, Minn. Stats. §§ 349.11- 349.22, and rules adopted pursuant to the authority contained in such statutes. (b) No city permit shall be required for the conduct of gambling exempt from licensing under Minn. Stats. § 349.166. (c) Nothing in this article shall be deemed to be an automatic approval of a license applied for with the charitable gambling control board. The city reserves the right to disapprove licenses for individual bingo occasions, raffle games, paddle wheel games and pull -tab distributions. (Code 1984, § 416:05) Sec. 10 -155. - Conduct of gambling; contribution to city; local gambling tax. In addition to the requirements of Minn. Stats. §§ 349.11- 349.22, and rules adopted pursuant to the authority contained in such statutes, lawful gambling shall be subject to the following regulations: (1) Except as provided in this subsection, it shall be unlawful to disseminate in the city, in any manner, information concerning any present or future lawful gambling event or opportunity. a• An organization conducting lawful gambling, duly licensed or otherwise allowed pursuant to the statutes and rules referred to in section 10 -153, may disseminate information to its own membership about such games. b• Signs advertising bingo, a raffle or a pull -tab distribution shall be regulated pursuant to the provisions of chapter 24 C. Advertising and news reporting contained in newspaper, radio and television media available to the general public of more than one municipality and addressed to the general public, and not addressed to the residents of the city, are exempt from the provisions of this subsection. (2) It is unlawful to make side bets or other wagers in connection with the conduct of lawful gambling. (3) A bingo or raffle game duly licensed or otherwise allowed pursuant to this article may only be conducted or operated by members of the licensed organization who are 18 years of age or older. No member shall receive any compensation whatsoever for his services in conducting, assisting in conducting, or operating any such game, and no person shall so assist in operating such game unless he shall have been and shall then be a member or the spouse of a member in good standing in the organization for at least one year. This subsection shall not apply to pull -tab distributions. (4) No bingo or raffle license will be approved for an organization that also operates another bingo or raffle game in the city. No person who is under the age of 21 years shall operate or assist in operating a pull -tab distribution in the city. (5) No lawful gambling license or premises permit, or any renewal of either, will be approved for: a• Any organization to conduct a pull -tab distribution on any premises other than a church, the premises of a fraternal, veterans' or other nonprofit organization, or the premises of an on -sale liquor licensee of the type referred to in section 4 -32 (a)(1) and (b). http: // library. municode .com /print.aspx ?h= &clientID= 13556 &HTMRequest= http %3a %2f... 2/21/2013 Municode Page 3 of 4 b. Any organization or local subdivision thereof unless all the following requirements are met: 1. The organization or the local subdivision has been in continuous existence holding meetings and conforming with the requirements of this subsection b for more than one year prior to the approval of the license; 2. Of the gross profits derived from lawful gambling sales in the city, 50 percent of the licensee's expenditures for lawful purposes must be on lawful purposes conducted or located only within one or more of the following cities of the county: Maple Grove, Dayton, Champlin, Corcoran, Osseo, Brooklyn Park, and Plymouth; and 3. The organization must file with the city a copy of all expenditure reports required to be filed with the state, and such filing with the city must be made according to the same schedule as that required by the state. C. The conduct of a lawful gambling distribution by more than one organization on premises where such activities are authorized. d. Any one organization to conduct lawful gambling at more locations than the council deems reasonable and appropriate based upon the following factors: 1 . The number of locations of the type referred to in subsection (5)a of this subsection; 2. The number of applications for lawful gambling by other organizations; 3. The extent of the applicant's present distribution system; and 4. The city's desire to prevent monopolies and promote equitable application of this article. (6) It is unlawful to sell, give or otherwise transfer in the city any raffle ticket, paddle ticket or other opportunity to participate in any gambling event not approved by the city pursuant to the provisions of the statutes and rules adopted by reference in section 10 -153. This prohibition extends to any gambling event which would otherwise be allowed pursuant to the exemptions set forth in Minn. Stats. § 349.166 if the organization to which the exemption applies is located outside the city. (7) Organizations conducting lawful gambling within the city must contribute ten percent of their net profits derived from lawful gambling conducted at premises within the city to a fund administered and regulated by the city without costs to such fund, for disbursement by the city of the receipts for lawful purposes, or police, fire, and other emergency or public safety related services, equipment and training, excluding pension obligations. For purposes of this subsection, net profits are gross profits less amounts expended for allowable expenses and paid in taxes assessed on lawful gambling. (8) A one -half percent local gambling tax is imposed on each licensed organization within the city to cover the costs incurred by the city to regulate lawful gambling. The tax shall be one -half percent of the gross receipts of the licensed organization from all lawful gambling, less prizes actually paid out by the organization. (Code 1984, § 416:10) Sec. 10 -156. - Authorized organizations. An organization making application as required by Minn. Stats. § 349.213, subd. 2, or any other law, shall not be eligible to conduct lawful gambling in the City of Maple Grove unless it meets http: // library. municode .com /print.aspx ?h= &clientID= 13556 &HTMRequest= http %3a %2f... 2/21/2013 Municode Page 4 of 4 the qualifications in Minn. Stats. § 349.16, subd. 2, and also meets at least one of the following conditions: (1) The physical site for the organization's headquarters or the registered business office of the organization is located within the City of Maple Grove at least two years immediately preceding application for a license; or (2) The organization owns real property within the City of Maple Grove and the lawful gambling is conducted on the property owned by the organization within the City of Maple Grove; or (3) The physical site where the organization regularly holds its meetings and conducts its activities, other than lawful gambling and fund raising, is within the City of Maple Grove and has been located within the City of Maple Grove for at least two years immediately preceding application for a license; or (4) The organization is a fire relief organization that provides fire protection services to the City of Maple Grove. (Ord. No. 10 -65, § 1, 2 -16 -2010) Secs. 10- 157 -10 -180. - Reserved. http: / /library.municode.coml print. aspx? h= &clientID= 13556 &HTMRequest= http %3 a %2f... 2/21/2013 Spring Lake Park, MN Code of Ordinances The books provided for in § 114.63 above and all secondhand motor vehicles, parts, and accessories in the possession of the licensee shall be, at all reasonable times, open to the inspection of the Police Chief, any member of the police force, or any person duly authorized in writing by the Police Chief for that purpose. No licensee or clerk, agent, or other person in charge of the premises or business of a licensee, shall refuse to admit thereto any person authorized in this section to examine records, or fail to exhibit to him or her on demand all motor vehicles, parts, or accessories and books, papers, and inventories relating thereto. (1976 Code, § 47E.10) Penalty, see § 10.99 TITLE XI: BUSINESS REGULATIONS / CHAPTER 114: SECONDHAND GOODS DEALERS / USED CAR DEALERS / § 114.65 VIOLATIONS. § 114.65 VIOLATIONS. The violation of any section of this subchapter shall constitute a misdemeanor. (1976 Code, § 47E.11) Penalty, see § 10.99 TITLE XI: BUSINESS REGULATIONS / CHAPTER 115: AMUSEMENTS CHAPTER 115: AMUSEMENTS Section ,p Lawful Gambling �j✓� 115.01 Purpose 115.02 Definitions 115.03 Lawful gambling; criteria 115.04 Premises permits and bingo hall licenses; procedures 115.05 Contributions 115.06 Law enforcement and administrative costs 115.07 Gambling exempt from state licensing requirements 115.08 Violations 115.09 Enforcement responsibility TITLE XI: BUSINESS REGULATIONS / CHAPTER 115: AMUSEMENTS / LAWFUL American Legal Publishing Corporation 98 GAMBLING Spring Lake Park, MN Code of Ordinances TITLE XI: BUSINESS REGULATIONS / CHAPTER 115: AMUSEMENTS / LAWFUL GAMBLING/ §115.01 PURPOSE. § 115.01 PURPOSE. The purpose of this subchapter is to regulate and control the conduct of lawful gambling in the city by providing standards and criteria related to the approval or denial of premises permits as required by M.S. § 349.213, as it may be amended from time to time. (1976 Code, § 47A.01) TITLE XI: BUSINESS REGULATIONS / CHAPTER 115: AMUSEMENTS / LAWFUL GAMBLING/ § 115.02 DEFINITIONS. § 115.02 DEFINITIONS. For the purpose of this subchapter, the terms defined in M. S.A. § 349.12, as it may be amended from time to time, are incorporated herein and by reference. For the purpose of this subchapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning. BOARD. The State Gambling Control Board. CLASS OF LICENSE. (1) A Class A, B, C, or D license issued by the Board as authorized under M.S.A. § 349.16 as it may be amended from time to time, and further defined as follows: bingo; (a) A Class A license authorizes all forms of lawful gambling; (b) A Class B license authorizes all forms of lawful gambling except (c) A Class C license authorizes bingo only; and (d) A Class D license authorizes raffles only. American Legal Publishing Corporation 99 Spring Lake Park, MN Code of Ordinances (2) No premises licensed hereunder shall be issued more than one license in any one class. LAWFUL GAMBLING. The operation, conduct, or sale of bingo, raffles, paddlewheels, tipboards, and pulltabs as regulated by M.S. Ch. 349, as it may be amended from time to time. ORGANIZATION. Any fraternal, religious, veterans', or other non - profit group which has at least 15 active dues- paying members, is operating within the city, and either has been duly incorporated in this state as a non - profit organization for the most recent three years, or has been recognized by the I.R.S. as exempt from income taxation for the most recent three years, as defined in M.S.A. § 349.12 as it may be amended from time to time. ORGANIZATIONAL LICENSE. A license for lawful gambling issued by the Board. PREMISESPERMIT. A permit issued by the Board to an organization as defined herein, after approval by a City Council resolution. A PREMISES PERMIT shall designate the location of an organization's lawful gambling activities. TRADE AREA. This city and each city contiguous to this city. (1976 Code, § 47A.02) TITLE XI: BUSINESS REGULATIONS / CHAPTER 115: AMUSEMENTS / LAWFUL GAMBLING/ § 115.03 LAWFUL GAMBLING; CRITERIA. § 115.03 LAWFUL GAMBLING; CRITERIA. Lawful gambling as regulated by M.S. Ch. 349, as it may be amended from time to time, is permitted in the city if the organization conducting these activities meets the following criteria: (A) It is licensed by the State Gambling Control Board; (B) It has maintained an address within the city for at least three years prior to the application; (C) No organization may conduct lawful gambling at more than three locations within the city; (D) The organization must strictly adhere to the requirements of this subchapter; (E) Organizations which lawfully conducted gambling in the city before the effective date of this subchapter are not required to submit applications before the date of their next license or permit renewal; however, all organizations must comply with the terms of this American Legal Publishing Corporation 100 Spring Lake Park, MN Code of Ordinances subchapter immediately upon its passage and publication; and (F) Premises authorized to conduct lawful gambling in the city must have an on -sale or off -sale liquor license or a club license permitting liquor on the premises. (1976 Code, § 47A.03) Penalty, see § 10.99 TITLE XI: BUSINESS REGULATIONS / CHAPTER 115: AMUSEMENTS / LAWFUL GAMBLING / § 115.04 PREMISES PERMITS AND BINGO HALL LICENSES; PROCEDURES. § 115.04 PREMISES PERMITS AND BINGO HALL LICENSES; PROCEDURES. (A) An organization applying to the Gambling Control Board for a premises permit, bingo hall license, or for the renewal of the same, to conduct lawful gambling in the city shall, within ten days of making the application, file the following with the city: (1) A duplicate copy of the Gambling Control Board application along with all supporting documents submitted to the Gambling Control Board; (2) A copy of the articles of incorporation and bylaws of the organization; (3) The names and addresses of all officers and directors of the organization; (4) A copy of the organization's written procedures and criteria for distribution of funds derived from lawful gambling, its standardized application form, and its written fiscal control procedures; (5) A copy of the I.R.S.'s tax exempt letter; (6) Confirmation that no employee or principal officer of the organization has been convicted of a felony. No employee or organization whose principal officers and employees with a felony conviction, shall be employed in a gambling- related activity by any permitted organization; (7) All organizations must show proof that they have a gambling manager trained in accordance with the requirements of M.S. § 349.167, as it may be amended from time to time (Laws, 1990); and (8) A copy of the gambling organization's lease, which must be for a two -year period, shall be submitted to the city for approval. (B) Upon receipt of the materials required by division (A) above, city staff shall investigate the applicant, and based upon the investigation, the City Council shall act on the American Legal Publishing Corporation 101 Spring Lake Park, MN Code of Ordinances application within 30 days (C) The action of the City Council to approve an applicant for a premises permit or bingo hall license within the city shall be by resolution. Failure to receive a majority affirmative vote of the City Council shall constitute a denial of the application. (D) Copies of the monthly financial statements filed by the organization with the Gambling Control Board, as defined in M.S. § 349.154, as it may be amended from time to time, shall be filed with the city within ten days of filing those materials with the Gambling Control Board. (E) To assure compliance with this subchapter, the city may require a premises permit holder or bingo hall licensee to provide copies of his or her records described in M.S. § 349.19, as it may be amended from time to time. (F) A premises permit issued by the city under this section may be suspended or revoked by the city for violation of this subchapter or for failure to meet the qualifications set out in this subchapter, or for a willful violation of any part of this subchapter, or for a failure to comply, for any reason, with any provision, guarantee, or claim made in an applicant's original license application to the city or the state. (G) No license or permit issued by the city, including any bingo hall license, grants the licensee a property right or entitlement to the license or permit. The city may refuse to issue, renew, or revoke the license or permit for any reason and will not incur liability for any damages including but not limited to direct, consequential, or incidental damages, deprivation of property, loss of income, loss of profits, or loss of livelihood. (H) All Class A and Class B licensees and permittees in the city shall use an approved independent accounting firm for their annual audits related directly to lawful gambling and charges as an allowable expense of the gambling operation. Further, all Class A and Class B licensees and permittees, at their discretion, may use an independent accounting firm to perform other accounting, bookkeeping, and tax preparation services related directly to lawful gambling and charges as an allowable expense of the gambling operation. All agreements providing for this type of services shall be in writing and shall be submitted to the city as part of the application for review by the city to determine compliance with local and state regulations and laws. Any such agreements entered into or modified after issuance of a license or permit shall be filed with the city prior to the new agreement or modification becoming effective. The initial approval and the continuance of a license or permit is contingent upon these agreements complying with this subchapter and state statutes and regulations. It shall be unlawful for the premises owner to provide accounting or bookkeeping services to the licensee, directly or indirectly. (I) All licensees and permittees in the city will assure continuous and active management of the gambling operation by members of the organization and will not delegate American Legal Publishing Corporation 102 Spring Lake Park, MN Code of Ordinances managerial responsibilities; all licensees and permittees will work continuously to operate in the most efficient manner to increase the amount of available lawful proceeds and will maintain the lowest possible costs and will encourage and use volunteers to the fullest extent possible. (1976 Code, § 47A.04) Penalty, see § 10.99 TITLE XI: BUSINESS REGULATIONS / CHAPTER 115: AMUSEMENTS / LAWFUL GAMBLING/ § 115.05 CONTRIBUTIONS. § 115.05 CONTRIBUTIONS. Each organization conducting lawful gambling within the city shall contribute a minimum of 60% of its net profits to organizations outside of itself within the city's trade area as defined in § 115.16. (1976 Code, § 47A.05) Penalty, see § 10.99 TITLE XI: BUSINESS REGULATIONS / CHAPTER 115: AMUSEMENTS / LAWFUL GAMBLING / § 115.06 LAW ENFORCEMENT AND ADMINISTRATIVE COSTS. § 115.06 LAW ENFORCEMENT AND ADMINISTRATIVE COSTS. (A) All organizations conducting lawful gambling within the city shall, within 30 days of the end of the month, pay to the city an amount equal to 3% of the gross receipts from lawful gambling conducted in the city in that month, less amounts actually paid for prizes, to cover the city's law enforcement and administrative costs in regulating lawful gambling. Any unused portion of this money will be paid back annually in accordance with M.S. § 349.213, as it may be amended from time to time. (B) The city may investigate the criminal history and background of an applicant for a premises permit or license pursuant to this subchapter. (1976 Code, § 47A.06) Penalty, see § 10.99 TITLE XI: BUSINESS REGULATIONS / CHAPTER 115: AMUSEMENTS / LAWFUL GAMBLING / § 115.07 GAMBLING EXEMPT FROM STATE LICENSING REQUIREMENTS. American Legal Publishing Corporation 103 Spring Lake Park, MN Code of Ordinances § 115.07 GAMBLING EXEMPT FROM STATE LICENSING REQUIREMENTS. (A) Organizations which conduct lawful gambling which are exempt from state gambling licensing requirements may conduct that gambling within the city upon receipt of a permit from the city, except this requirement does not apply to door prizes, raffles, and bingo where total prizes are less than an amount set forth in the fee schedule. (B) An application for this type of permit, along with a fee in the amount set from time to time by Council resolution, shall be made at least 30 days prior to the date the gambling is to be conducted. The application shall contain the following: (1) The name of the organization; (2) The address of the organization; (3) The place where the gambling will occur; and (4) The total prizes to be awarded. (C) Within 30 days of filing any reports with the Gambling Control Board, the organization shall file a copy of those reports with the city. (D) The provisions relating to law enforcement and administrative costs set forth in § 115.20 shall not apply to gambling permitted pursuant to this section. All other provisions of this subchapter apply to these organizations. (1976 Code, § 47A.07) Penalty, see § 10.99 TITLE XI: BUSINESS REGULATIONS / CHAPTER 115: AMUSEMENTS / LAWFUL GAMBLING/ § 115.08 VIOLATIONS. § 115.08 VIOLATIONS. It shall be a misdemeanor to carry on any lawful gambling activity without a valid premises permit. Nothing in this section shall preclude the city from enforcing this subchapter by means of any appropriate legal action. (1976 Code, § 47A.08) Penalty, see § 10.99 TITLE XI: BUSINESS REGULATIONS / CHAPTER 115: AMUSEMENTS / LAWFUL American Legal Publishing Corporation 104 Spring Lake Park, MN Code of Ordinances GAMBLING / § 115.09 ENFORCEMENT RESPONSIBILITY. § 115.09 ENFORCEMENT RESPONSIBILITY. Nothing in this subchapter shall be construed to require the city to undertake any responsibility for enforcing compliance with M.S.A. Ch. 349 other than those provisions related to the issuance of premises permits as required in M.S.A. § 349.213, as these statutes may be amended from time to time. (1976 Code, § 47A.10) TITLE XI: BUSINESS REGULATIONS / CHAPTER 116: VEHICLES FOR HIRE Section CHAPTER 116: VEHICLES FOR HIRE Taxicabs 116.01 License required 116.02 License application 116.03 License issuance; fee; term 116.04 Termination of license 116.05 Records required TITLE XI: BUSINESS REGULATIONS / CHAPTER 116: VEHICLES FOR HIRE / TAXICABS TITLE XI: BUSINESS REGULATIONS / CHAPTER 116: VEHICLES FOR HIRE / TAXICABS / § 116.01 LICENSE REQUIRED. § 116.01 LICENSE REQUIRED. No person, firm, co- partnership, or corporation whose principal place of business is American Legal Publishing Corporation 105 Section 23 -1813. SEPARABILITY. Every section, provision or part of this ordinance is declared separable from every other section, provision or part to the extent that if any section, provision or a part of the ordinance shall be held invalid, such holdings shall not invalidate any other section, provision, or part thereof, Section 23 -1814. PENALTIES. Whoever does any act forbidden by this ordinance or omits or fails to do any act required by this ordinance shall be guilty of a misdemeanor and upon conviction thereof by lawful authority, be punished by a fine not to exceed $1,000 or imprisonment not to exceed 90 days or both, together with the costs of prosecution. Each day that a violation exists constitutes a separate and distinct offense. Section 23 -1815. LIABILITY FOR THE CRIMES OF ANOTHER. Every person who commits or attempts to commit, conspires to commit or aids and abets in the commission of any act constituting a violation of this ordinance or any act, which constitutes an omission and, therefore, a violation of this ordinance, whether individually or in connection with one or more persons or as principal, agent or accessory, shall be guilty of such offense and every person who falsely, fraudulently, forcibly or willfully, induces, causes, coerces, requires, permits or directs another to violate any of the provisions of this chapter is likewise guilty of such offense. r' CHARITABLE GAMBLING X 6_24 Section 23 -1900. STATEMENT OF POLICY. The City of Brooklyn Center deems it desirable to regulate lawful gambling within its jurisdiction as authorized by Minnesota Statutes, Section 349.213, as it may be amended from time to time, to impose, and has imposed in this ordinance, additional restrictions on gambling within its limits beyond those contained in Minnesota Statutes, Chapter 349, as it may be amended from time to time. Section 23 -1901. DEFINITIONS. The definitions in Minnesota Statute 349 are adopted by reference in this chapter. Section 23 -1902. LAWFUL GAMBLING IN ON -SALE PREMISES. Lawful gambling is permitted in on -sale licensed premises within the City of Brooklyn Center provided it is conducted by qualified and state licensed charitable organizations in accordance with Minnesota Statutes, Sections 609.75 - 609.763, inclusive, as they may be amended from time to time; Minnesota Statutes, Sections 349.11- 349.23, inclusive, as they may be amended from time to time, and this ordinance. The following regulations and qualifications must be complied with by all such charitable organizations: The organization must have been in existence in Brooklyn Center for at least three years. 2. The organization must expend 85% of its expenditures for lawful purposes on lawful purposes conducted or located within the Cities of Brooklyn Center, Brooklyn Park, Minneapolis, Crystal, Robbinsdale, and Fridley. City of Brooklyn Center 23 -77 City Ordinance 3. The organization must file a list containing the names and addresses of all current members with the City Manager's designee on an annual basis. 4. The organization must file charitable gambling financial reports monthly with the City Manager's designee. 5. The organization must conduct lawful gambling in a method as required by the City. 6. Workers or managers may not divulge the number of or the dollar amount of the winners at any time. 7. Workers or managers shall not co- mingle game cards. 8. The organization shall comply with all the provisions of Minnesota Statutes, Chapter 349. 9. The organization shall register with the State Gambling Board all equipment and supplies used in a licensed on -sale establishment. 10. The charitable organization will be responsible for the booth and other equipment used in the conduct of lawful gambling. 11. The organization must pay the City of Brooklyn Center an investigation fee of $250 per year. Section 23 -1903. SEVERABILITY_ Every section, provision or part of this chapter is declared separable from every other section, provision or part to the extent that if any section, provision or part of this chapter shall be held invalid, such holding shall not invalidate any other section, provision or part thereof. Section 23 -1904. PENALTIES. Any person violating any provision of this ordinance shall be guilty of a misdemeanor, and upon conviction thereof, shall be punished by a fine of not more than one thousand dollars ($1,000) and imprisonment for not more than ninety (90) days, or both, together with the cost of prosecution. ALARM SYSTEMS Section 23 -2000. STATEMENT OF POLICY. The City Council of the City of Brooklyn Center deems it necessary to provide for the special and express regulation of alarm systems which are designed to signal the presence of a hazard requiring urgent attention and to which public safety personnel are expected to respond in order to protect the public health, safety and welfare. The City Council finds that the regulation of alarm systems is necessary in order to reduce the increasing frequency of false alarms in Brooklyn Center. The great number and increasing frequency of these false alarms requires intensive, time- consuming efforts by the Police Department and thereby distracts from and reduces the level of services available to the rest of the community. This diminishes the ability of the City to promote the general health, City of Brooklyn Center 23 -78 City Ordinance STAFF REPORT / Code Enforcement Agenda Item Council Meeting: Prepared By: February 28, 2013 Mike Pritchard Topic: Action Required: 20xxx County Road 10 Information Summary: COMPLAINT: 12 -021 Date of complaint: 5/31/2012 (Original Complaint 5/7/2010) Location: 20xxx Co Rd 10 Corcoran, MN PID: 26- 119 -23 -11 -0005 Original Complaint: Vehicle Storage Violation(s): Zoning Ordinance - 1060.010 — EXTERIOR STORAGE Subd. 1 and 2 (not allowed); District Regulations 1040.100 C -1 Neighborhood Commercial (exterior storage not allowed); Commercial fence constructed without Site Plan approval. Site Inspection Dates: 6/18/2012; 9/12/2012; 1/28/2013 Letters Sent: 6/22/2012; 8/13/2012; 9/12/2012; 11/26/2012; 12/7/2012; (8/30/2010) Summary: This storage is presumed to have begun sometime in 2010, at which time a perimeter fence and secure drive gate were constructed. The vehicles are not owned by the property owner. The property is being leased to a neighboring automotive sales business as vehicle storage only. It does not appear that any service or sales are conducted at this location. 5/31/2012 — The vehicle storage was brought to the attention of the City, it was discovered that an original complaint was received on 5 -7 -2010 regarding the outside automotive storage. (A letter was sent in August 2010, see attached) 6/18/2012 — A site inspection was conducted at which time 45+ vehicles were counted in the fenced, dirt lot. (See attached photos) 6/22/2012 — A letter was sent to notify the property owner /representative. 6/26/2012 — The property owner representative stopped in City Hall to discuss the matter. The violations were explained to him and he was asked to make a plan of action to comply with the Ordinance. He asked that the City provide more information as to his options. 7/18/2012 — The City Planner was then involved to discuss options for the property owner's exterior vehicle storage. 8/13/2012 - A letter was sent requesting another meeting with the property owner. 8/28/2012 — The property owner responded and a meeting was set for September 12. Staff Report / Code Enforcement Page 2 911012012 — A site inspection was conducted and 20+ vehicles remained. (See attached photos) 9/12/2012 - A total of 25 vehicles remained, including 1 RV, a mix of current and expired tabs. A meeting was held with the property owner /representative, Code Enforcement Official and the City Planner. Options were laid out as summarized in the letter dated: September 12, 2012 (attached). The property owner asked for more time, so he could research the financial impact of compliance. He was also concerned about the Downtown Sewer and Water Project and what financial implications it would have on his properties. He was encouraged to attend the Council Meetings and address the Council if he wished. He agreed that no matter the outcome of the Sewer and Water Project decision, his final decision would be made by Nov. 30, 2012. A letter was sent summarizing our meeting (attached). 11/26/2012 — A letter (attached) was sent reminding the owner of his deadline agreement and requesting a final decision. 12/7/2012 — There was no response from the owner. A letter was sent stating that the matter would be forwarded to the city Attorney. 1/3/2013 — The property owner requested to address the Council regarding this matter. The City Administrator spoke with the property owner. (Enforcement has been suspended to give the property owner a chance to address the Council.) 1/24/2013 — The property owner was not present at the Council Meeting. 1/25/2013 — The property owner was again added to the Council Agenda for February 14. (Continue suspension of enforcement per Administrator through February 14, 2013 pending Council action.) ** *MOVED TO FEBRUARY 28 MEETING * ** 1/29/2013 — A site inspection noted 20+ vehicles on -site. (See attached photos) 20xxx County Road 10 - � aj AN* t ftt= 20xxx County Road 10 20xxx County Road 10 M929§2018 I M8 CITY OF CORCORAN 8200 County Road 116, Corcoran, MN 55340 763.420.2288 — Office 763.420.6056 — Fax E -mail - general(@ci.corcoran.mn.us / Web Site - www.ci.corcoran.mmus August 30, 2010 20 C 10 Corcoran, MN 55340 RE: Outside Storage at 20 County Road 10, Corcoran, MN (PID 26- 119 -23- ) Dear Mr. _, The City of Corcoran has recently been made aware of outside storage of vehicles occurring at the above referenced address. The subject property is zoned C -1, which does not allow outside storage of vehicles. Furthermore, city records show no application was submitted for installation of the new chainlink fence. The existing outside storage is in violation of the Corcoran City Code. As described in Section 1080, Subd. 3 of the Corcoran City Code, any person who violates a provision of this Chapter is guilty of a misdemeanor and, upon conviction thereof, may be punished as allowed by State Statute and as identified in Section 10.19 (B) of the City Code. Each act of violation and every day on which a violation occurs or continues is a separate violation. Please contact me at 763.420.2288 within 10 days of the date of this letter to discuss correction of the violations by removal of the fence and vehicles from the site and establish a timeline for correction of the violation. Sincerely, Dan Donahue City Administrator L.. r1 �: � rWmac CI'T'Y OF CORC®RAN 8200 County Road 116, Corcoran, MN 55340 763.420.2288 — Office 763.420.6056 — Fax E -mail - general(a d.corcoran.mn.us / Web Site - www.ci.corcoran.mn.us June 22, 2012 20 C 10 Corcoran, MN 55340 Re: Code Violation Dear Property Owner: The City has been aware that you have a Code Violation on your property. It appears as though there has been no attempt made to correct the violation and that the violation may have expanded. It is the City's desire to work with property owners to alleviate violations in order to avoid the court system and related penalties. The following violation has been identified on your property: Zoning Ordinance - Section 1060 — Performance Standards 1060.010 — EXTERIOR STORAGE Subd. 1 Outside storage. As otherwise regulated, all outdoor storage is prohibited... (See Attached) This violation relates to the 40+ vehicles being stored on your property at 2M County Road 10 in Corcoran, MN PID: 26- 119 -23�. Cease and desist this use and remove all vehicles from your property. The City will re- inspect your property on August 6, 2012 to determine compliance with the ordinance. If the violations have not been remedied or scheduled for correction, a citation may be issued for any remaining violation and any person who violates this chapter is guilty of a misdemeanor. 1080 Subd. 3. (See Attached) Please contact me if you have any questions at 763- 400 -7033. Sincerely, Mike Pritchard Code Enforcement Attached: Ordinance, Photo(s) cc: Resident File SECTION 1060 - PERFORMANCE STANDARDS 1060.010 - Exterior Storage Subd. 1. Outside Storage. As otherwise regulated, all outdoor storage is prohibited except: A. Clothes line poles and wires. B. Construction and landscaping material if they are used on the premises for construction within 6 months. C. Swings, slides and other play equipment. D. Outdoor furniture and lawn and garden equipment. E. Wood for burning in a fireplace, stove or furnace provided it is stored as follows: 1. In a neat and secure stack, not exceeding 4 feet. 2. The wood stack is not infested with rodents. 3. The wood is not kept in a front yard. F. Storage of recreational vehicles and unoccupied trailers less than 30 feet long, boats, all- terrain vehicles and snowmobiles may be stored in the side or rear yard, provided they comply with a minimum setback of 10 feet. (Residential) G. Agricultural equipment and materials, if these are used on the premises within a period of 12 months. Except that properties that are used for "true farming" as defined by the City Code are exempt from this requirement. Subd. 2. Non - Residential Zoning Districts. A. Outside Storage /Display. Exterior storage and display shall be governed by the respective zoning district in which such use is located. *Note* C -1 does not allow exterior storage. 1040.100 B. Additional Standards. All exterior storage shall be located in the rear or side yard and shall be screened so as not to be visible from adjoining properties and public streets except for the following: 1. Merchandise being displayed for sale in accordance with zoning district requirements. 2. Materials and equipment currently being used for construction on the premises. Subd. 3. All Zoning Districts. A. Except for temporary construction trailers and mobile services operated by public service agencies (i.e., bookmobile, bloodmobiles, etc.) as allowed by the City, and trailers parked in a designated and improved loading area, no vehicle may be used for office, business, industrial manufacturing, testing, or storage of items used with or in a business, commercial or industrial enterprise, unless otherwise approved by the Zoning Administrator. B. The City Council may order the owner of any property to cease or modify open storage uses including existing uses, provided it is found that such use constitutes a threat to the public health, safety, convenience, or general welfare. SECTION 1080 — ENFORCEMENT PROVISIONS Subd. 3. Penalties. Any person who violates a provision of this Chapter is guilty of a misdemeanor and, upon conviction thereof, may be punished as allowed by State Statute and as identified in Section 10.19 (B) of the City Code. Each act of violation and every day on which a violation occurs or continues is a separate violation. CHAPTER 10 - GENERAL PROVISIONS 10.19 (A) Any person, firm, or corporation who violates any provision of this code for which another penalty is not specifically provided, shall, upon conviction, be guilty of a misdemeanor. The penalty for any crime that is a misdemeanor under this code, including Minnesota Statutes specifically adopted by reference, shall be identical to the penalty enumerated in M. S. § 609.02, Subd. 3, as amended from time to time. (B) Any person, firm or corporation who violates any provision of this code, including Minnesota Statutes specifically adopted by reference, which is designated to be a petty misdemeanor shall, upon conviction be guilty of a petty misdemeanor. The penalty for any petty offense that is a petty misdemeanor shall be identical to the penalty enumerated in M. S. § 609.02, Subd. 4a, as amended from time to time. (C) In either the case of a misdemeanor or a petty misdemeanor, the costs of prosecution may be added. A separate offense shall be deemed committed upon each day during which a violation occurs or continues. The City of Corcoran Municipal Code and Zoning Ordinance can be viewed online at www.ci.corcoran.mn.us or at City Hall — 8200 County Road 116 Corcoran MN, 55340 anytime Monday — Friday 8am — 4pm. CITY OF CORCOR N 8200 County Road 116, Corcoran, MN 55340 763.420.2288 — Office 763.420.6056 — Fax E -mail - general(a d.corcoran.mn.us / Web Site - www.ci.corcoran.mn.us August 13, 2012 20 County Road 10 Corcoran, MN 55340 Re: Code Violation: Automobile Storage. 20M Co Rd 10, Corcoran, MN 55340 PID: 26- 119 -23� Dear Mr. _: In follow -up to our conversation at City Hall, I would like to request a plan of action from you to remove the vehicles currently being stored on your south lot, or if you have found a solution that would allow it, to start that process. The deadline for removal was August 6, 2012 and has passed. However, it is the City's desire to work with property and business owners to alleviate violations and avoid the court system and related penalties. The City of Corcoran would like to arrange a meeting with you to set up a timeline for removal or help find a solution, if any, which may allow this type of storage. The City looks forward to working with you on this matter. Please contact me within 10 days to set up a meeting at 763- 400 -7033. Sincerely, Mike Pritchard Code Enforcement cc: Property Address File CITY OF CORCOR N 8200 County Road 116, Corcoran, MN 55340 763.420.2288 — Office 763.420.6056 — Fax E -mail - general(a d.corcoran.mn.us / Web Site - www.ci.corcoran.mn.us September 12, 2012 201 County Road 10 Corcoran, MN 55340 Re: Meeting at City Hall Dear Mr. _: I would like to thank you for meeting with Kendra Lindahl and myself regarding the code violation on your property at 20M County Road 10 in Corcoran. I feel this was a very productive meeting and that we all have a good understanding of the situation and have made a reasonable plan of action to comply with the code. As per our discussion, there are two (2) options: 1. Cease and Desist: Remove all vehicles and fencing. 2. Apply for and have approved: a. Rezoning from Neighborhood Commercial (C -1) to Light Industrial (1 -1) b. Comprehensive Plan Amendment c. Conditional Use Permit, including site improvements You have expressed your concerns with the sewer and water project and the uncertainty of how and when it may affect you. This sounds as though it would be a factor in making your final decision as to how to proceed. Because of this, we have agreed to revisit this matter in a few weeks to see if any progress or decisions have been made about the Downtown project. We also agreed that you will make a final decision by November 30, 2012. Please contact me if you have any questions at 763- 400 -7033 Sincerely, Mike Pritchard Code Enforcement cc: Property Address File CITY OF CORCOR N 8200 County Road 116, Corcoran, MN 55340 763.420.2288 — Office 763.420.6056 — Fax E -mail - general(a d.corcoran.mn.us / Web Site - www.ci.corcoran.mn.us November 26, 2012 201 County Road 10 Corcoran, MN 55340 Re: Storage Violation at 20M County Road 10, Corcoran, MN PID: 26- 119 -23� Dear Mr. _: This letter is in follow -up to our deadline agreement on September 12, 2012. We agreed that you would make a final decision regarding the above referenced violation by November 30, 2012. 1 feel that we all have a good understanding of the situation and have made a reasonable plan of action to comply with the code. As per our discussion, there are two (2) options: 1. Cease and Desist: Remove all vehicles and fencing. 2. Apply for and have approved: a. Rezoning from Neighborhood Commercial (C -1) to Light Industrial (1 -1) b. Comprehensive Plan Amendment c. Conditional Use Permit, including site improvements If you have a different solution or further questions, please let me know. Also, you have expressed your concerns with the sewer and water project and the uncertainty of how and when it may affect you. Although we can empathize with this, we agreed that you would make a final decision by November 30, 2012. Please contact me with your plans at 763 - 400 -7033 Sincerely, Mike Pritchard Code Enforcement cc: Property Address File - C wnJ t CITY OF CORCORAN 8200 County Road 116, Corcoran, MN 55340 763.420.2288 — Office 763.420.6056 — Fax E -mail - general (a�ci.corcoran.mn.us / Web Site - www.ci.corcoran.mn.us December 7, 2012 20 County Road 10 Corcoran, MN 55340 Re: Storage Violation at 20M County Road 10, Corcoran, MN PID: 26- 119 -23 -- Dear Mr. _: This letter is in follow -up to our deadline agreement on September 12, 2012. We agreed that you would make a final decision regarding the above referenced violation by November 30, 2012. As per our discussion, there were two (2) options: 1. Cease and Desist: Remove all vehicles and fencing. 2. Apply for and have approved: a. Rezoning from Neighborhood Commercial (C -1) to Light Industrial (1 -1) b. Comprehensive Plan Amendment c. Conditional Use Permit, including site improvements You agreed to make a final decision and submit a plan of compliance by November 30, 2012; however, as of December 7, 2012 a decision and plan had not been submitted. This matter has been forwarded to the City Attorney. Please contact me with any questions at 763- 400 -7033 Sincerely, Mike Pritchard Code Enforcement cc: Property Address File