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HomeMy WebLinkAbout2010/12/20 - ADMIN - Agenda Packets - City Council - RegularAGENDA DECEMBER 20, 2010 (Mayor Jacobs Out) 6:30 p.m. SPECIAL STUDY SESSION – Council Chambers Discussion Items 1. 6:30 p.m. Meet with Proposed City Audit Firm Representatives Written Reports 2. November 2010 Monthly Financial Report 7:15 p.m. ECONOMIC DEVELOPMENT AUTHORITY – Council Chambers 1. Call to Order 2. Roll Call 3. Approval of Minutes 3a. Economic Development Authority Minutes December 6, 2010 4. Approval of Agenda 5. Reports 5a. Economic Development Authority Vendor Claims 6. Old Business 7. New Business 7a. Establishment of the Hardcoat Tax Increment Financing District Recommended Action: Motion to adopt the resolution approving the establishment of the Hardcoat Tax Increment Financing District within Redevelopment Project No. 1 (an Economic Development District). 7b. Contract for Private Development between the EDA and M & L Properties, LLC (Hardcoat Inc) Recommended Action: - Motion to adopt the resolution approving the Contract for Private Development between the EDA and M & L Properties, LLC (Hardcoat Inc). - Motion to approve the resolution authorizing an Interfund Loan for advance of certain costs in connection with the Hardcoat TIF District. 7c. 2011 Final HRA Levy Certification Recommended Action: Motion to Adopt Resolution authorizing the proposed levy of a special benefit levy pursuant to Minnesota Statutes Section 469.033, Subdivision 6, and approval of the 2011 Final HRA Levy and Budget for fiscal year 2011. 7d. Authorize Bank Signatories Recommended Action: Motion to Adopt Resolution authorizing bank signatories for the EDA Checking Account. 7e. Interfund Loans Recommended Action: Motion to adopt resolution approving interfund loans. 8. Communications 9. Adjournment Meeting of December 20, 2010 Special Study Session, Economic Development Authority and City Council Agenda 7:30 p.m. CITY COUNCIL MEETING – Council Chambers 1. Call to Order 1a. Pledge of Allegiance 1b. Roll Call 2. Presentations 2a. James L. Brimeyer Resolution of Appreciation 3. Approval of Minutes 3a. Study Session Minutes November 22, 2010 3b. Joint City Council / School Board Meeting Minutes November 29, 2010 3c. City Council Minutes December 6, 2010 3d. Special Study Session Minutes December 6, 2010 4. Approval of Agenda and Items on Consent Calendar NOTE: The Consent Calendar lists those items of business which are considered to be routine and/or which need no discussion. Consent items are acted upon by one motion. If discussion is desired by either a Councilmember or a member of the audience, that item may be moved to an appropriate section of the regular agenda for discussion. The items for the Consent Calendar are listed on the last page of the Agenda. Recommended Action: Motion to approve the agenda as presented and to approve items on the consent calendar. (Alternatively: Motion to add or remove items from the agenda, motion to move items from consent calendar to regular agenda for discussion and to approve those items remaining on the consent calendar.) 5. Boards and Commissions -- None 6. Public Hearings 6a. Public Hearing and Resolution Approving Establishment of the Hardcoat Tax Increment Financing District Recommended Action: - Conduct the public hearing and adopt the resolution approving the establishment of the Hardcoat Tax Increment Financing District within Redevelopment Project No. 1 (an economic development district). - Motion to ratify the EDA resolution authorizing an Interfund Loan for advance of certain costs inconnection with the Hardcoat TIF District. 7. Requests, Petitions, and Communications from the Public – None 8. Resolutions, Ordinances, Motions and Discussion Items 8a. Dairy Queen – Conditional Use Permit for In-Vehicle Service Recommended Action: Motion to Adopt Resolution denying a Conditional Use Permit application for in-vehicle sales and service for property located at 5001 Excelsior Blvd. 8b. Namakan Properties - Registered Land Survey (RLS) Hwy 7 / Blake Road Recommended Action: Motion to adopt a resolution approving a Registered Land Survey for Namakan Properties, LLC at Hwy 7 and Blake Road. Meeting of December 20, 2010 Special Study Session, Economic Development Authority and City Council Agenda 8c. Second Reading - Ordinance Providing for a Local Lodging Tax Recommended Action: Motion to adopt second reading of an Ordinance providing for a Local Lodging Tax, approve summary, and authorize publication. 8d. Adoption of 2010 Revised Budget, 2011 Budgets, 2011 City and HRA Property Tax Levies, 2011 – 2015 Capital Improvement Plan and 2011 Utility Rates Recommended Action: - Motion to Adopt Resolution adopting 2010 Revised General and Park & Recreation Fund Budgets, 2011 Budgets and authorizing the 2011 Final Property Tax Levy. - Motion to Adopt Resolution authorizing the 2011 Final HRA Levy. - Motion to Adopt Resolution adopting the 2011-2015 Capital Improvement Program. - Motion to Adopt Resolution setting the 2011 Utility Rates. 8e. 2011 Employee Compensation Recommended Action: Motion to adopt a Resolution confirming a 2.25% general increase for non-union employees effective 12/31/10 and a 0% increase for 2011; continuing participation in the Volunteer Firefighter Benefit Program; and increasing performance program pay by 2.25% for Paid-On-Call Firefighters for 2011. 9. Communication Auxiliary aids for individuals with disabilities are available upon request. To make arrangements, please call the Administration Department at 952/924-2525 (TDD 952/924-2518) at least 96 hours in advance of meeting. Meeting of December 20, 2010 Special Study Session, Economic Development Authority and City Council Agenda 4. CONSENT CALENDAR 4a. Adopt Resolution of appreciation to recognize James L. Brimeyer for serving on the Southwest Transitway Policy Advisory Committee led by Hennepin County Regional Rail Authority 4b. Adopt Resolution authorizing final payment in the amount of $13,724.68 for the 2009 MSA Street Improvement Project - Wooddale Avenue with Valley Paving, Inc., Project No. 2009-1101 - City Contract No. 75-10 4c. Adopt Resolution authorizing final payment in the amount of $12,000.00 for Water Treatment Plant No. 1 Rehabilitation with Magney Construction, Inc., Project No. 2008-1400, City Contract No. 12-10 4d. Approve Amendment No. 1 to Contract 02-10 which provides engineering construction services for the Highway 7/Wooddale Avenue Interchange Project - Project No. 2004- 1700 4e. Approve Resolution establishing W. 44th Street as a Municipal State Aid Street 4f. Adopt Resolution committing specific revenue sources to special revenue funds and approve amendments to the City’s Fund Balance Policy 4g. Adopt Resolution authorizing fund equity transfers and fund closings and Adopt Resolution approving interfund loans. 4h. Approve a one year contract with three option years with HLB Tautges Redpath, LTD for auditing services 4i. Adopt Resolution authorizing bank signatories and opening of money market account 4j. Adopt Resolution authorizing the special assessment for the repair of the sewer service line at 5912 Minnetonka Boulevard - P.I.D. 09-117-21-34-0191 4k. Approve for Filing Planning Commission Minutes September 15, 2010 4l. Approve for Filing Planning Commission Minutes October 6, 2010 4m. Approve for Filing Planning Commission Minutes October 20, 2010 4n. Approve for Filing Planning Commission Minutes November 17, 2010 4o. Approve for Filing Vendor Claims 4p. Approve for Filing Housing Authority Minutes November 10, 2010 St. Louis Park Economic Development Authority and regular City Council meetings are carried live on Civic TV cable channel 17 and replays are frequent; check www.parktv.org for the schedule. The meetings are also streamed live on the internet at www.parktv.org, and saved for Video on Demand replays. The agenda is posted on Fridays on the official city bulletin board in the lobby of City Hall and on the text display on Civic TV cable channel 17. The agenda and full packet are available by noon on Friday on the city’s website. Meeting Date: December 20, 2010 Agenda Item #: 1 Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: Special Meeting TITLE: Meet with Proposed City Audit Firm Representatives. RECOMMENDED ACTION: No action required at this time. This report is intended to provide background information as a part of the City Council’s meeting with the recommended audit firm at the special study session. POLICY CONSIDERATION: Does the City Council wish to proceed with a contract for auditing services with HLB Tautges Redpath, LTD? BACKGROUND: The audit firm the City has used over the last six years is Abdo, Eick and Meyers. During this time this firm has provided very good service to the City. However, given the amount of time the City has used this firm without receiving competitive proposals, the City Council directed staff on October 25 to request proposals for auditing services for fiscal year end 2010 with three option years. In early November, staff sent out a Request for Proposals (RFP) for auditing services. We received seven proposals, all from very reputable CPA firms. All seven of the proposals met the minimum requirements, and were considered. Staff reviewed all of the proposals and scored them based on criteria given in the RFP. The criteria included: experience and quality of staff, overall firm qualifications, audit approach, audit schedule, additional services, and cost. After all of the proposals were reviewed, the top three firms were invited to give a brief presentation and answer questions posed by staff. City staff interviewed all three firms on Thursday, December 2nd. The interviews were scored based on criteria including: communication, experience with cities of similar size and complexity, work relationships, and overall quality of the presentation. Several reference calls were made to other cities with experience in working with the various firms. After consideration of the proposals, interviews, and reference calls, staff came to the conclusion that HLB Tautges Redpath, LTD would provide the best overall service for the City. Below are the CPA firms that were interviewed, along with their corresponding fees for the 2010 year-end audit and total fees for 2010-2013 audits. Firm Fees for 2010 Audit Cumulative 2010-2013 Audits MMKR $43,200 $175,450 HLB Tautges Redpath $45,000 $195,300 Abdo, Eick & Meyers $46,906 $190,318 All three of these proposals are a decrease from the 2009 audit fees of $51,000 and provide the same services as the 2009 audit. Special Study Session Meeting of December 20, 2010 (Item No. 1) Page 2 Subject: Meet with Proposed City Audit Firm Representatives Background on HLB Tautges Redpath, LTD HLB Tautges Redpath, LTD is a CPA firm located in White Bear Lake, MN. They are a member of HLB International, a worldwide organization of professional accounting firms. This gives them access to the resources of accounting firms throughout the world. Several members of their staff have 20-30+ years of governmental experience. Many of their staff are members of the Minnesota Government Finance Officers Association, and they routinely host seminars and workshops for clients regarding important changes in accounting standards. They have a reputation for providing a quality audit, and pride themselves on being “thinkers, not robots”. Approval of the contract with HLB Tautges Redpath, LTD is included in the consent agenda for the December 20, 2010 City Council Meeting. The contract is for one year, with three option years. FINANCIAL OR BUDGET CONSIDERATION The expense for the 2011 audit is included in the budget. VISION CONSIDERATION: Not applicable Attachments: HLB Tautges Redpath, LTD Information Prepared by: Steven Heintz, Finance Supervisor Reviewed by: Brian A. Swanson, Controller Approved by: Tom Harmening, City Manager 4810 White Bear Parkway White Bear Lake, MN 55110 651.426.7000 www.hlbtr.com Tautges Redpath, Ltd. Certified Public Accountants government We train our staff to be Thinkers, not Robots. Thinkers understand city finance and then apply their understanding in determining the right procedures and services for clients. There are many good accountants that follow governmental accounting standards, but in today’s world that is not good enough. Governmental services should not be treated like a commodity. Our government team works with a wide range of entities in a number of service areas. Our specialized training and staff experience enables us to handle a variety of complex issues. By keeping an eye on the overall picture, our staff is better equipped to identify audit and accounting issues and design appropriate audit procedures, which ultimately protects your organization throughout the entire auditing process. Specialized Services • Arbitrage • Fund Balance • Debt Services Study • Utility Rate Studies • Tax Increment Financing • Cost Allocation Studies • Budgeting • MS 429 bonds and the special assessment process Entities We Serve • Cities/Towns • Tribal Government • Fire Relief Associations • Watershed Districts • Cable Commissions • Housing and Redevelopment Authorities • School Districts Industry Involvement • Minnesota Government Finance Officers Association (MnGFOA) • GFOA Certificate Review Program • League of Minnesota Cities (LMC) • Minnesota Association of School Business Officials (MASBO) • AICPA Governmental Audit Quality Center Special Study Session Meeting of December 20, 2010 (Item No. 1) Subject: Meet with Proposed City Audit Firm Representatives Page 3 4810 White Bear Parkway White Bear Lake, MN 55110 651.426.7000 www.hlbtr.com Tautges Redpath, Ltd. Certified Public Accountants ...government/nfp service profile HLB Tautges Redpath has a 40-year history of providing audit and advisory services to governmental and not-for-profit entities. With our long-term client relationships, continuing education programs and experience with a variety of entities, our certified public accountants are sensitive to the needs of not-for-profit and government organizations and stay up-to-date on all issues, laws and changes affecting them. Target Clients Governmental Entities Cities/Towns, Tribal Government, Fire Relief Associations, Watershed Districts, Cable Commissions, Housing and Redevelopment Authorities, School Districts Not-For-Profit Entities 501(c)(3) Charitable Organizations, Private Foundations, Charter Schools, Member Organizations, Business Leagues, Civic Organizations, Social Clubs Why HLB Tautges Redpath? Service Approach. We provide a service, not a commodity. We dig into the details and ask the questions that should be asked. Our approach is a good fit for organizations that expect high quality services. Our clients value our responsiveness to their needs and the assurance pro- vided by our services. Dedicated Staff. We have a business unit of more than 20 staff exclusively dedicated to gov- ernmental and not-for-profit services. As such, a great deal of time and effort is expended in the ongoing training of professional staff to proactively serve our clients. This time and effort presents clients with competent, well-prepared audit staff sensitive to the continuing needs of governmental and not-for-profit entities. 100% employee-owned company. Our employees have a financial interest in the company and therefore have a vested interest in helping the firm grow and delivering quality services to clients. More attention. Better results. That’s the HLB Tautges Redpath difference. Clients hire us for our expertise and then remain loyal because we invest the time and resources necessary to un- derstand their unique needs and interests. Clients know we care. Not-For-Profit Services • Audited, Reviewed or Compiled Financial Statements • Tax Planning and Preparation • Charitable Gambling • Federal Single Audits • Financial Statement Preparation • Special Services • Internal Control Studies • Cost Allocations Government Services • Financial Audit • Cost Allocation Studies • Tax Increment Financing Assistance • Accounting Assistance • Debt/Utility Rate Studies • Annual Financial Report Preparation • Arbitrage • Federal Single Audits Special Study Session Meeting of December 20, 2010 (Item No. 1) Subject: Meet with Proposed City Audit Firm Representatives Page 4 Meeting Date: December 20, 2010 Agenda Item #: 2 Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: November 2010 Monthly Financial Report. RECOMMENDED ACTION: No action required at this time. POLICY CONSIDERATION: None at this time. BACKGROUND: This report is designed to provide summary information regarding the overall level of revenues and expenditures in both the General Fund and the Park and Recreation Fund. These funds should be a primary concern in analyzing the City’s financial health because they represent the discretionary use of tax levy dollars. Through November, both the General Fund and the Park and Recreation Fund expenditures are running below budget. Actual expenditures should generally run about 92% of the annual budget in November. Currently, the General Fund has expenditures totaling 86.1% of the adopted budget and the Park and Recreation Fund expenditures are at 86.6%. Both are very consistent with prior year results through November. Certain revenues can tend to be harder to gauge in this same way due to the timing of when they are received, examples of which would be property taxes and State aid payments (Police & Fire, DOT/Highway, PERA Aid, etc). However, the overall revenues in both funds are also very consistent when comparing prior year through November. It is important to note that there is more than a full week of November payroll expense which has not been recorded at the time this report was prepared. Due to the conversion to the two-week payroll delay, time earned for the period of November 20th to November 30th will not be paid and recorded until the December 17th pay date. Both funds would still be under budget through November for expenditures, but this does account for a portion of the variance. Significant variances for both revenues and expenditures are highlighted below accompanied with a general discussion of reasons for the variance. General Fund Revenues: • License and permit revenues are at 98.5% of budget through the month of November. This is due in part to the license revenues, which in November have already exceeded the total annual budget by 14% or $92,000. Many new restaurants and businesses opened in 2010 that weren’t all anticipated when the revenue budget was prepared last year. This has caused both Food & Beverage and Liquor license revenues to increase and exceed budget. Rental license revenues are also up because more homeowners are renting out their homes as it has become more difficult to sell in the current real estate market. When looking at strictly permit revenue through November, it is at 92.25% of budget. While it Special Study Session Meeting of December 20, 2010 (Item No. 2) Page 2 Subject: November 2010 Monthly Financial Report is still anticipated that permit revenues will come close to the budgeted amount, it is not likely that they will exceed budget as was the case in 2008 and 2009. • The Human Resources budget shows training revenue will exceed the annual budget for the year under Charges for Services. This will be consistent with the trend in prior years. • Other recoveries revenue under the Police Department will exceed budget in 2010 by approximately $18,000. This is due to a process improvement that has been implemented in 2010 to better handle and account for Property Room cases. Expenditures: • Public Works Operations Supplies have exceeded budget through November by 12% or $59,000. The most significant expenses in this category to date include $211,000 for asphalt work, $141,000 for road salt, and $107,000 for street lights. There were some asphalt expenses in 2010 that were not anticipated during the budget planning process, including $33,000 for overlaying Utica Avenue. Salt and asphalt costs have also continued to rise approximately 8% to 10% annually, which means that unanticipated expenditures can have an even larger impact on the budget. It is expected that very few additional supplies expenditures will be incurred for the remainder of the year. It still appears that the Public Works Operations Division as a whole will end the year at or just under budget. Parks and Recreation Expenditures: • Park Maintenance Personal Services is at 95% through the month of November. Temporary salaries exceeded budget due to a longer than normal mowing season in 2010. The early spring coupled with ample rainfall throughout the entire summer increased the amount of mowing and trimming staff time required. This division has also experienced some staffing challenges increasing the need for temporary help. Other Notes • While the November results do not reflect this at the time this report was prepared, overtime could exceed budget in a few General Fund and Park & Rec departments due to the excessive snow fall already this year. Staff will report on this in more detail in the December report. Most of the departments that incur overtime costs for snow removal do still appear to be in a position to come in at or slightly under budget overall. FINANCIAL OR BUDGET CONSIDERATION: None at this time. VISION CONSIDERATION: Regular and timely reporting of financial information is part of the City’s mission of being stewards of financial resources. Attachments: Monthly Financial Reports Prepared by: Darla Monson, Senior Accountant Reviewed by: Brian A. Swanson, Controller Approved by: Tom Harmening, City Manager 12/14/2010CITY OF ST LOUIS PARK 11:27:07R5509FIN1 LOGIS001 1Monthly Financial Report Page -By Co (pb), Object 2010 201011/30/2010 <==========================================>20092010 Description Annual Budget Current Period YTD Actual Budget Balance Per Cent Used | | Prior Year Budget Same Period Prior Year YTD Actual Per Cent Used 01000 GENERAL FUND 4000 REVENUES & EXPENSES 4001 REVENUES 4010 GENERAL PROPERTY TAXES 14,889,605.00-7,556,184.48- 7,333,420.52- 50.75 |14,653,275.00-7,208,993.31- 49.20 4100 LICENSES & PERMITS 2,294,768.00- 135,977.71- 2,259,313.39- 35,454.61- 98.45 |2,515,000.00-2,636,338.09- 104.82 4270 FINES & FORFEITS 311,750.00- 23,569.24- 265,044.45- 46,705.55- 85.02 |312,000.00-289,471.95- 92.78 4300 INTERGOVERNMENTAL 1,598,787.00- 41,736.16- 1,510,734.88- 88,052.12- 94.49 |1,647,214.00-1,484,338.39- 90.11 4600 CHARGES FOR SERVICES 1,138,018.00-8,017.76- 684,218.32- 453,799.68- 60.12 |1,201,900.00-639,084.68- 53.17 5200 MISCELLANEOUS 100,000.00-8,862.78- 120,607.20- 20,607.20 120.61 |100,000.00-138,100.22- 138.10 4001 REVENUES 20,332,928.00-218,163.65-12,396,102.72-7,936,825.28-60.97 |20,429,389.00-12,396,326.64-60.68 6001 EXPENDITURES 6002 PERSONAL SERVICES 18,132,004.00 1,079,348.85 15,839,260.66 2,292,743.34 87.36 |18,496,154.00 16,573,707.10 89.61 6210 SUPPLIES 846,535.00 17,709.36 749,996.09 96,538.91 88.60 |766,135.00 564,654.41 73.70 6300 NON-CAPITAL EQUIPMENT 67,775.00 346.68 66,634.96 1,140.04 98.32 |70,775.00 42,101.95 59.49 6350 SERVICES & OTHER CHARGES 3,922,858.00 174,725.56 2,898,856.65 1,024,001.35 73.90 |4,160,215.00 3,089,811.10 74.27 7800 CAPITAL OUTLAY 209,296.84 209,296.84-| 6001 EXPENDITURES 22,969,172.00 1,272,130.45 19,764,045.20 3,205,126.80 86.05 |23,493,279.00 20,270,274.56 86.28 8001 OTHER INCOME 8010 TRANSFERS IN 2,583,825.00- 215,318.74- 2,368,506.14- 215,318.86- 91.67 |2,678,910.00-2,409,834.02- 89.96 8070 OTHER RECOVERIES 1,500.00-284.88- 18,835.43- 17,335.43 1,255.70 |2,000.00-4,393.75- 219.69 8100 INTEREST 200,000.00-61,747.22 261,747.22- 30.87- |350,000.00-177,160.73- 50.62 8130 CONTRIBUTIONS/DONATIONS 2,202.00-2,202.00 |5,953.00 8170 ADMINISTRATION FEES 50.00- 5,953.00-5,953.00 |6,125.00- 8200 MISC RECEIPTS 100.00-36.14-63.86- 36.14 |340.50- 8001 OTHER INCOME 2,785,425.00-215,653.62-2,333,785.49-451,639.51-83.79 |3,030,910.00-2,591,901.00-85.52 8501 OTHER EXPENSE 8550 INTEREST/FINANCE CHARGES |.71 8580 MISCELLANEOUS EXPENSE 181,181.00 .53 .94- 181,181.94 |181,000.00 78.04 .04 8590 BANK CHARGES/CREDIT CD FEES 19,000.00 1,806.38 17,465.57 1,534.43 91.92 |19,000.00 21,819.42 114.84 8501 OTHER EXPENSE 200,181.00 1,806.91 17,464.63 182,716.37 8.72 |200,000.00 21,898.17 10.95 4000 REVENUES & EXPENSES 51,000.00 840,120.09 5,051,621.62 5,000,621.62-9,905.14 |232,980.00 5,303,945.09 2,276.57 01000 GENERAL FUND 51,000.00 840,120.09 5,051,621.62 5,000,621.62-9,905.14 |232,980.00 5,303,945.09 2,276.57 Special Study Sessionl Meeting of December 20, 2010 (Item No. 2) Subject: November 2010 Monthly Financial Report Page 3 12/14/2010CITY OF ST LOUIS PARK 11:27:07R5509FIN1 LOGIS001 2Monthly Financial Report Page -By Co (pb), Object 2010 201011/30/2010 <==========================================>20092010 Description Annual Budget Current Period YTD Actual Budget Balance Per Cent Used | | Prior Year Budget Same Period Prior Year YTD Actual Per Cent Used 02000 PARK AND RECREATION 4000 REVENUES & EXPENSES 4001 REVENUES 4010 GENERAL PROPERTY TAXES 4,014,872.00-2,007,436.00- 2,007,436.00- 50.00 |4,073,118.00-2,036,559.00- 50.00 4100 LICENSES & PERMITS 6,275.00-622.00-5,653.00-9.91 |6,735.00- 4270 FINES & FORFEITS 56.25-56.25 | 4300 INTERGOVERNMENTAL 71,219.00-985.72- 48,287.19- 22,931.81- 67.80 |55,702.00-65,145.52- 116.95 4600 CHARGES FOR SERVICES 1,073,900.00- 33,035.83- 982,627.25- 91,272.75- 91.50 |1,141,598.00-1,004,436.34- 87.99 5200 MISCELLANEOUS 906,900.00- 52,364.52- 709,831.75- 197,068.25- 78.27 |883,000.00-681,331.05- 77.16 4001 REVENUES 6,073,166.00-86,386.07-3,748,860.44-2,324,305.56-61.73 |6,153,418.00-3,794,206.91-61.66 6001 EXPENDITURES 6002 PERSONAL SERVICES 3,440,416.00 182,594.92 3,089,785.07 350,630.93 89.81 |3,503,813.00 3,152,543.00 89.97 6210 SUPPLIES 906,881.00 58,263.10 685,684.68 221,196.32 75.61 |872,131.00 634,422.53 72.74 6300 NON-CAPITAL EQUIPMENT 4,120.00 4,681.57 561.57- 113.63 |4,120.00 4,797.21 116.44 6350 SERVICES & OTHER CHARGES 1,712,749.00 64,924.34 1,476,856.68 235,892.32 86.23 |1,703,002.00 1,540,010.32 90.43 7800 CAPITAL OUTLAY 7,000.00 7,000.00 |15,352.00 6001 EXPENDITURES 6,071,166.00 305,782.36 5,257,008.00 814,158.00 86.59 |6,098,418.00 5,331,773.06 87.43 8001 OTHER INCOME 8065 SALE OF SALVAGE 1,500.00-1,500.00 | 8100 INTEREST |760.08- 8130 CONTRIBUTIONS/DONATIONS 13,000.00-2,550.00- 9,732.69-3,267.31- 74.87 |12,000.00-6,523.00- 54.36 8200 MISC RECEIPTS 8,160.00-8,160.00 |2,890.00- 8001 OTHER INCOME 13,000.00-2,550.00-19,392.69-6,392.69 149.17 |12,000.00-10,173.08-84.78 8501 OTHER EXPENSE 8550 INTEREST/FINANCE CHARGES 39.00 39.00-|12.97 8590 BANK CHARGES/CREDIT CD FEES 15,000.00 1,270.73 19,117.02 4,117.02- 127.45 |16,450.98 8501 OTHER EXPENSE 15,000.00 1,270.73 19,156.02 4,156.02-127.71 |16,463.95 4000 REVENUES & EXPENSES 218,117.02 1,507,910.89 1,507,910.89-|67,000.00-1,543,857.02 2,304.26- 02000 PARK AND RECREATION 218,117.02 1,507,910.89 1,507,910.89-|67,000.00-1,543,857.02 2,304.26- Special Study Sessionl Meeting of December 20, 2010 (Item No. 2) Subject: November 2010 Monthly Financial Report Page 4 12/14/2010CITY OF ST LOUIS PARK 11:29:38R5509FIN1 LOGIS005 1Monthly Financial Report Page -By Co, Dept (pb), Object 2010 201011/30/2010 <==========================================>20092010 Description Annual Budget Current Period YTD Actual Budget Balance Per Cent Used | | Prior Year Budget Same Period Prior Year YTD Actual Per Cent Used 01000 GENERAL FUND 100 GENERAL 4000 REVENUES & EXPENSES 4001 REVENUES 4010 GENERAL PROPERTY TAXES 14,889,605.00-7,556,184.48- 7,333,420.52- 50.75 |14,653,275.00-7,208,993.31- 49.20 4300 INTERGOVERNMENTAL 45,205.00-22,602.50- 22,602.50- 50.00 |45,205.00-22,602.50- 50.00 4600 CHARGES FOR SERVICES 261.28-261.28 |372.72- 5200 MISCELLANEOUS 85,000.00-7,083.33- 82,947.17-2,052.83- 97.58 |85,000.00-78,148.42- 91.94 4001 REVENUES 15,019,810.00-7,083.33-7,661,995.43-7,357,814.57-51.01 |14,783,480.00-7,310,116.95-49.45 6001 EXPENDITURES 6350 SERVICES & OTHER CHARGES 39,697.59 39,697.59-| 6001 EXPENDITURES 39,697.59 39,697.59-| 8001 OTHER INCOME 8010 TRANSFERS IN 2,583,825.00- 215,318.74- 2,368,506.14- 215,318.86- 91.67 |2,678,910.00-2,409,834.02- 89.96 8100 INTEREST 200,000.00-61,747.43 261,747.43- 30.87- |350,000.00-177,158.12- 50.62 8130 CONTRIBUTIONS/DONATIONS |500.00 8001 OTHER INCOME 2,783,825.00-215,318.74-2,306,758.71-477,066.29-82.86 |3,028,910.00-2,586,492.14-85.39 8501 OTHER EXPENSE 8580 MISCELLANEOUS EXPENSE 180,681.00 180,681.00 |180,000.00 8590 BANK CHARGES/CREDIT CD FEES |2,049.55 8501 OTHER EXPENSE 180,681.00 180,681.00 |180,000.00 2,049.55 1.14 4000 REVENUES & EXPENSES 17,622,954.00-222,402.07-9,929,056.55-7,693,897.45-56.34 |17,632,390.00-9,894,559.54-56.12 100 GENERAL 17,622,954.00-222,402.07-9,929,056.55-7,693,897.45-56.34 |17,632,390.00-9,894,559.54-56.12 Special Study Sessionl Meeting of December 20, 2010 (Item No. 2) Subject: November 2010 Monthly Financial Report Page 5 12/14/2010CITY OF ST LOUIS PARK 11:29:38R5509FIN1 LOGIS005 2Monthly Financial Report Page -By Co, Dept (pb), Object 2010 201011/30/2010 <==========================================>20092010 Description Annual Budget Current Period YTD Actual Budget Balance Per Cent Used | | Prior Year Budget Same Period Prior Year YTD Actual Per Cent Used 110 ADMINISTRATION 4000 REVENUES & EXPENSES 4001 REVENUES 4100 LICENSES & PERMITS 183,360.00-916.67 205,865.76- 22,505.76 112.27 |215,500.00-169,476.96- 78.64 4270 FINES & FORFEITS 8,000.00-10,000.00-2,000.00 125.00 |8,000.00-6,750.00- 84.38 4300 INTERGOVERNMENTAL |947.30- 4600 CHARGES FOR SERVICES 34.50-835.57-835.57 |97.00- 5200 MISCELLANEOUS |143.40- 4001 REVENUES 191,360.00-882.17 216,701.33-25,341.33 113.24 |223,500.00-177,414.66-79.38 6001 EXPENDITURES 6002 PERSONAL SERVICES 444,400.00 45,838.81 445,364.28 964.28- 100.22 |531,500.00 471,410.02 88.69 6210 SUPPLIES 3,100.00 166.35 2,711.79 388.21 87.48 |3,700.00 2,607.87 70.48 6350 SERVICES & OTHER CHARGES 476,972.00 15,855.01 313,576.15 163,395.85 65.74 |455,635.00 369,642.99 81.13 6001 EXPENDITURES 924,472.00 61,860.17 761,652.22 162,819.78 82.39 |990,835.00 843,660.88 85.15 8001 OTHER INCOME 8200 MISC REVENUE |340.50- 8001 OTHER INCOME |340.50- 8501 OTHER EXPENSE 8550 INTEREST/FINANCE CHARGES |.71 8590 BANK CHARGES/CREDIT CD FEES |4.86 8501 OTHER EXPENSE |5.57 4000 REVENUES & EXPENSES 733,112.00 62,742.34 544,950.89 188,161.11 74.33 |767,335.00 665,911.29 86.78 110 ADMINISTRATION 733,112.00 62,742.34 544,950.89 188,161.11 74.33 |767,335.00 665,911.29 86.78 Special Study Sessionl Meeting of December 20, 2010 (Item No. 2) Subject: November 2010 Monthly Financial Report Page 6 12/14/2010CITY OF ST LOUIS PARK 11:29:38R5509FIN1 LOGIS005 3Monthly Financial Report Page -By Co, Dept (pb), Object 2010 201011/30/2010 <==========================================>20092010 Description Annual Budget Current Period YTD Actual Budget Balance Per Cent Used | | Prior Year Budget Same Period Prior Year YTD Actual Per Cent Used 120 FINANCE 4000 REVENUES & EXPENSES 4001 REVENUES 4600 CHARGES FOR SERVICES 48,318.00-44,682.38-3,635.62- 92.48 |50,000.00-39,913.25- 79.83 5200 MISCELLANEOUS 150.00-150.00 |1,229.36- 4001 REVENUES 48,318.00-44,832.38-3,485.62-92.79 |50,000.00-41,142.61-82.29 6001 EXPENDITURES 6002 PERSONAL SERVICES 920,800.00 65,097.37 845,157.17 75,642.83 91.79 |937,200.00 886,714.59 94.61 6210 SUPPLIES 4,225.00 171.48 3,523.37 701.63 83.39 |4,225.00 3,293.28 77.95 6350 SERVICES & OTHER CHARGES 152,905.00 11,349.47 137,959.06 14,945.94 90.23 |162,555.00 127,682.64 78.55 6001 EXPENDITURES 1,077,930.00 76,618.32 986,639.60 91,290.40 91.53 |1,103,980.00 1,017,690.51 92.18 8001 OTHER INCOME 8170 ADMINISTRATION FEES 50.00- 5,775.00-5,775.00 |6,125.00- 8200 MISC REVENUE .60-.60 | 8001 OTHER INCOME 50.00-5,775.60-5,775.60 |6,125.00- 8501 OTHER EXPENSE 8580 MISC EXPENSE 500.00 .53 5.94-505.94 1.19- |500.00 20.12 4.02 8590 BANK CHARGES/CREDIT CD FEES 500.00 .01-500.01 |500.00 22.97 4.59 8501 OTHER EXPENSE 1,000.00 .53 5.95-1,005.95 .60-|1,000.00 43.09 4.31 4000 REVENUES & EXPENSES 1,030,612.00 76,568.85 936,025.67 94,586.33 90.82 |1,054,980.00 970,465.99 91.99 120 FINANCE 1,030,612.00 76,568.85 936,025.67 94,586.33 90.82 |1,054,980.00 970,465.99 91.99 Special Study Sessionl Meeting of December 20, 2010 (Item No. 2) Subject: November 2010 Monthly Financial Report Page 7 12/14/2010CITY OF ST LOUIS PARK 11:29:38R5509FIN1 LOGIS005 4Monthly Financial Report Page -By Co, Dept (pb), Object 2010 201011/30/2010 <==========================================>20092010 Description Annual Budget Current Period YTD Actual Budget Balance Per Cent Used | | Prior Year Budget Same Period Prior Year YTD Actual Per Cent Used 130 HUMAN RESOURCES 4000 REVENUES & EXPENSES 4001 REVENUES 4600 CHARGES FOR SERVICES 9,000.00-7.00 10,475.00-1,475.00 116.39 |9,000.00-10,704.00- 118.93 5200 MISCELLANEOUS 6.00-270.00-270.00 |30.00- 4001 REVENUES 9,000.00-1.00 10,745.00-1,745.00 119.39 |9,000.00-10,734.00-119.27 6001 EXPENDITURES 6002 PERSONAL SERVICES 482,400.00 28,054.10 431,373.04 51,026.96 89.42 |481,000.00 438,594.12 91.18 6210 SUPPLIES 2,000.00 44.62 1,256.29 743.71 62.81 |2,000.00 1,601.32 80.07 6350 SERVICES & OTHER CHARGES 160,550.00 8,648.23 97,079.04 63,470.96 60.47 |160,550.00 95,818.98 59.68 6001 EXPENDITURES 644,950.00 36,746.95 529,708.37 115,241.63 82.13 |643,550.00 536,014.42 83.29 8001 OTHER INCOME 8501 OTHER EXPENSE 4000 REVENUES & EXPENSES 635,950.00 36,747.95 518,963.37 116,986.63 81.60 |634,550.00 525,280.42 82.78 130 HUMAN RESOURCES 635,950.00 36,747.95 518,963.37 116,986.63 81.60 |634,550.00 525,280.42 82.78 Special Study Sessionl Meeting of December 20, 2010 (Item No. 2) Subject: November 2010 Monthly Financial Report Page 8 12/14/2010CITY OF ST LOUIS PARK 11:29:38R5509FIN1 LOGIS005 5Monthly Financial Report Page -By Co, Dept (pb), Object 2010 201011/30/2010 <==========================================>20092010 Description Annual Budget Current Period YTD Actual Budget Balance Per Cent Used | | Prior Year Budget Same Period Prior Year YTD Actual Per Cent Used 135 COMMUNITY DEVELOPMENT 4000 REVENUES & EXPENSES 4001 REVENUES 4100 LICENSES & PERMITS 9,000.00-2,350.00- 13,315.00-4,315.00 147.94 |12,000.00-13,074.25- 108.95 4600 CHARGES FOR SERVICES 594,000.00-1,188.76- 521,807.64- 72,192.36- 87.85 |585,000.00-472,555.16- 80.78 4001 REVENUES 603,000.00-3,538.76-535,122.64-67,877.36-88.74 |597,000.00-485,629.41-81.34 6001 EXPENDITURES 6002 PERSONAL SERVICES 1,001,700.00 79,666.14 945,098.14 56,601.86 94.35 |1,023,000.00 913,089.82 89.26 6210 SUPPLIES 1,700.00 384.36 1,315.64 22.61 |3,000.00 682.06 22.74 6300 NON-CAPITAL EQUIPMENT |1,000.00 6350 SERVICES & OTHER CHARGES 47,750.00 795.85 39,443.97 8,306.03 82.61 |56,750.00 47,443.67 83.60 6001 EXPENDITURES 1,051,150.00 80,461.99 984,926.47 66,223.53 93.70 |1,083,750.00 961,215.55 88.69 8001 OTHER INCOME 8501 OTHER EXPENSE 4000 REVENUES & EXPENSES 448,150.00 76,923.23 449,803.83 1,653.83-100.37 |486,750.00 475,586.14 97.71 135 COMMUNITY DEVELOPMENT 448,150.00 76,923.23 449,803.83 1,653.83-100.37 |486,750.00 475,586.14 97.71 Special Study Sessionl Meeting of December 20, 2010 (Item No. 2) Subject: November 2010 Monthly Financial Report Page 9 12/14/2010CITY OF ST LOUIS PARK 11:29:38R5509FIN1 LOGIS005 6Monthly Financial Report Page -By Co, Dept (pb), Object 2010 201011/30/2010 <==========================================>20092010 Description Annual Budget Current Period YTD Actual Budget Balance Per Cent Used | | Prior Year Budget Same Period Prior Year YTD Actual Per Cent Used 140 FACILITIES MAINTENANCE 4000 REVENUES & EXPENSES 4001 REVENUES 4600 CHARGES FOR SERVICES 43,000.00-17,250.00- 25,750.00- 40.12 |8,200.00-11,500.00- 140.24 5200 MISCELLANEOUS 15,000.00-1,250.00- 15,193.67-193.67 101.29 |15,000.00-15,000.00- 100.00 4001 REVENUES 58,000.00-1,250.00-32,443.67-25,556.33-55.94 |23,200.00-26,500.00-114.22 6001 EXPENDITURES 6002 PERSONAL SERVICES 546,200.00 26,303.40 422,344.50 123,855.50 77.32 |534,000.00 484,673.65 90.76 6210 SUPPLIES 86,150.00 6,467.92 65,252.70 20,897.30 75.74 |90,500.00 41,992.69 46.40 6300 NON-CAPITAL EQUIPMENT 26,000.00 19,599.77 6,400.23 75.38 |26,000.00 13,885.05 53.40 6350 SERVICES & OTHER CHARGES 423,392.00 12,435.32 273,580.26 149,811.74 64.62 |502,942.00 354,005.29 70.39 6001 EXPENDITURES 1,081,742.00 45,206.64 780,777.23 300,964.77 72.18 |1,153,442.00 894,556.68 77.56 8001 OTHER INCOME 8501 OTHER EXPENSE 8580 MISC EXPENSE |37.02 8590 BANK CHARGES/CREDIT CD FEES 56.95 56.95-|203.10 8501 OTHER EXPENSE 56.95 56.95-|240.12 4000 REVENUES & EXPENSES 1,023,742.00 43,956.64 748,390.51 275,351.49 73.10 |1,130,242.00 868,296.80 76.82 140 FACILITIES MAINTENANCE 1,023,742.00 43,956.64 748,390.51 275,351.49 73.10 |1,130,242.00 868,296.80 76.82 Special Study Sessionl Meeting of December 20, 2010 (Item No. 2) Subject: November 2010 Monthly Financial Report Page 10 12/14/2010CITY OF ST LOUIS PARK 11:29:38R5509FIN1 LOGIS005 7Monthly Financial Report Page -By Co, Dept (pb), Object 2010 201011/30/2010 <==========================================>20092010 Description Annual Budget Current Period YTD Actual Budget Balance Per Cent Used | | Prior Year Budget Same Period Prior Year YTD Actual Per Cent Used 145 INFORMATION RESOURCES 4000 REVENUES & EXPENSES 4001 REVENUES 4600 CHARGES FOR SERVICES |1,277.42- 5200 MISCELLANEOUS 50.00-50.00 | 4001 REVENUES 50.00-50.00 |1,277.42- 6001 EXPENDITURES 6002 PERSONAL SERVICES 516,850.00 30,626.25 472,960.11 43,889.89 91.51 |562,500.00 526,433.53 93.59 6210 SUPPLIES 23,500.00 1,931.99 22,728.31 771.69 96.72 |30,800.00 19,444.93 63.13 6300 NON-CAPITAL EQUIPMENT 23,556.10 23,556.10-|3,284.23 6350 SERVICES & OTHER CHARGES 860,316.00 46,580.07 699,807.12 160,508.88 81.34 |877,970.00 641,053.08 73.02 6001 EXPENDITURES 1,400,666.00 79,138.31 1,219,051.64 181,614.36 87.03 |1,471,270.00 1,190,215.77 80.90 8001 OTHER INCOME 8200 MISC REVENUE 35.54-35.54 | 8001 OTHER INCOME 35.54-35.54 | 8501 OTHER EXPENSE 8590 BANK CHARGES/CREDIT CD FEES 21.31 21.31-|113.97 8501 OTHER EXPENSE 21.31 21.31-|113.97 4000 REVENUES & EXPENSES 1,400,666.00 79,138.31 1,218,987.41 181,678.59 87.03 |1,471,270.00 1,189,052.32 80.82 145 INFORMATION RESOURCES 1,400,666.00 79,138.31 1,218,987.41 181,678.59 87.03 |1,471,270.00 1,189,052.32 80.82 Special Study Sessionl Meeting of December 20, 2010 (Item No. 2) Subject: November 2010 Monthly Financial Report Page 11 12/14/2010CITY OF ST LOUIS PARK 11:29:38R5509FIN1 LOGIS005 8Monthly Financial Report Page -By Co, Dept (pb), Object 2010 201011/30/2010 <==========================================>20092010 Description Annual Budget Current Period YTD Actual Budget Balance Per Cent Used | | Prior Year Budget Same Period Prior Year YTD Actual Per Cent Used 150 COMMUNICATIONS & MARKETING 4000 REVENUES & EXPENSES 4001 REVENUES 4300 INTERGOVERNMENTAL 3,000.00-850.00-2,150.00- 28.33 |3,000.00- 4001 REVENUES 3,000.00-850.00-2,150.00-28.33 |3,000.00- 6001 EXPENDITURES 6002 PERSONAL SERVICES 188,280.00 10,884.07 142,362.77 45,917.23 75.61 |184,980.00 137,166.05 74.15 6210 SUPPLIES 100.00 100.00 | 6350 SERVICES & OTHER CHARGES 93,525.00 5,605.00 77,953.65 15,571.35 83.35 |104,245.00 123,119.19 118.11 6001 EXPENDITURES 281,905.00 16,489.07 220,316.42 61,588.58 78.15 |289,225.00 260,285.24 89.99 8001 OTHER INCOME 8501 OTHER EXPENSE 8590 BANK CHARGES/CREDIT CD FEES |16.49 8501 OTHER EXPENSE |16.49 4000 REVENUES & EXPENSES 278,905.00 16,489.07 219,466.42 59,438.58 78.69 |286,225.00 260,301.73 90.94 150 COMMUNICATIONS & MARKETING 278,905.00 16,489.07 219,466.42 59,438.58 78.69 |286,225.00 260,301.73 90.94 Special Study Sessionl Meeting of December 20, 2010 (Item No. 2) Subject: November 2010 Monthly Financial Report Page 12 12/14/2010CITY OF ST LOUIS PARK 11:29:38R5509FIN1 LOGIS005 9Monthly Financial Report Page -By Co, Dept (pb), Object 2010 201011/30/2010 <==========================================>20092010 Description Annual Budget Current Period YTD Actual Budget Balance Per Cent Used | | Prior Year Budget Same Period Prior Year YTD Actual Per Cent Used 160 POLICE 4000 REVENUES & EXPENSES 4001 REVENUES 4100 LICENSES & PERMITS 150.00- 2,550.00-2,550.00 | 4270 FINES & FORFEITS 303,500.00- 23,569.24- 254,905.02- 48,594.98- 83.99 |303,500.00-282,721.95- 93.15 4300 INTERGOVERNMENTAL 800,582.00- 40,241.72- 793,913.74-6,668.26- 99.17 |809,009.00-811,205.46- 100.27 4600 CHARGES FOR SERVICES 109,700.00-6,431.50- 73,042.19- 36,657.81- 66.58 |109,700.00-84,459.02- 76.99 5200 MISCELLANEOUS 252.45- 20,247.56- 20,247.56 |43,523.85- 4001 REVENUES 1,213,782.00-70,644.91-1,144,658.51-69,123.49-94.31 |1,222,209.00-1,221,910.28-99.98 6001 EXPENDITURES 6002 PERSONAL SERVICES 6,609,294.00 376,313.02 5,741,219.11 868,074.89 86.87 |6,546,794.00 5,888,632.16 89.95 6210 SUPPLIES 141,050.00 3,768.20 73,280.17 67,769.83 51.95 |150,900.00 82,923.58 54.95 6300 NON-CAPITAL EQUIPMENT 33,775.00 346.68 20,879.09 12,895.91 61.82 |35,775.00 21,328.03 59.62 6350 SERVICES & OTHER CHARGES 521,783.00 17,932.96 353,031.55 168,751.45 67.66 |547,053.00 361,222.08 66.03 7800 CAPITAL OUTLAY 209,296.84 209,296.84-| 6001 EXPENDITURES 7,305,902.00 398,360.86 6,397,706.76 908,195.24 87.57 |7,280,522.00 6,354,105.85 87.28 8001 OTHER INCOME 8070 OTHER RECOVERIES 1,500.00-284.88- 18,835.43- 17,335.43 1,255.70 |2,000.00-4,393.75- 219.69 8100 INTEREST .21-.21 |2.61- 8001 OTHER INCOME 1,500.00-284.88-18,835.64-17,335.64 1,255.71 |2,000.00-4,396.36-219.82 8501 OTHER EXPENSE 8580 MISC EXPENSE |500.00 8590 BANK CHARGES/CREDIT CD FEES 500.00 17.70 211.08 288.92 42.22 |500.00 203.79 40.76 8501 OTHER EXPENSE 500.00 17.70 211.08 288.92 42.22 |1,000.00 203.79 20.38 4000 REVENUES & EXPENSES 6,091,120.00 327,448.77 5,234,423.69 856,696.31 85.94 |6,057,313.00 5,128,003.00 84.66 160 POLICE 6,091,120.00 327,448.77 5,234,423.69 856,696.31 85.94 |6,057,313.00 5,128,003.00 84.66 Special Study Sessionl Meeting of December 20, 2010 (Item No. 2) Subject: November 2010 Monthly Financial Report Page 13 12/14/2010CITY OF ST LOUIS PARK 11:29:38R5509FIN1 LOGIS005 10Monthly Financial Report Page -By Co, Dept (pb), Object 2010 201011/30/2010 <==========================================>20092010 Description Annual Budget Current Period YTD Actual Budget Balance Per Cent Used | | Prior Year Budget Same Period Prior Year YTD Actual Per Cent Used 161 COMMUNITY OUTREACH - POLICE 4000 REVENUES & EXPENSES 4001 REVENUES 6001 EXPENDITURES 6002 PERSONAL SERVICES 76,700.00 4,462.86 68,345.51 8,354.49 89.11 |76,500.00 69,730.57 91.15 6210 SUPPLIES 850.00 850.00 |850.00 6350 SERVICES & OTHER CHARGES 8,705.00 4,564.98 4,140.02 52.44 |8,705.00 4,512.96 51.84 6001 EXPENDITURES 86,255.00 4,462.86 72,910.49 13,344.51 84.53 |86,055.00 74,243.53 86.27 8001 OTHER INCOME 8501 OTHER EXPENSE 4000 REVENUES & EXPENSES 86,255.00 4,462.86 72,910.49 13,344.51 84.53 |86,055.00 74,243.53 86.27 161 COMMUNITY OUTREACH - POLICE 86,255.00 4,462.86 72,910.49 13,344.51 84.53 |86,055.00 74,243.53 86.27 Special Study Sessionl Meeting of December 20, 2010 (Item No. 2) Subject: November 2010 Monthly Financial Report Page 14 12/14/2010CITY OF ST LOUIS PARK 11:29:38R5509FIN1 LOGIS005 11Monthly Financial Report Page -By Co, Dept (pb), Object 2010 201011/30/2010 <==========================================>20092010 Description Annual Budget Current Period YTD Actual Budget Balance Per Cent Used | | Prior Year Budget Same Period Prior Year YTD Actual Per Cent Used 165 FIRE PROTECTION 4000 REVENUES & EXPENSES 4001 REVENUES 4100 LICENSES & PERMITS 40,000.00-3,526.82- 32,619.59-7,380.41- 81.55 |50,000.00-41,548.82- 83.10 4300 INTERGOVERNMENTAL 300,000.00-1,494.44- 214,058.64- 85,941.36- 71.35 |300,000.00-194,560.63- 64.85 4600 CHARGES FOR SERVICES 4,000.00-325.00- 13,832.35-9,832.35 345.81 |4,000.00-15,679.00- 391.98 5200 MISCELLANEOUS 1,382.00-1,382.00 | 4001 REVENUES 344,000.00-5,346.26-261,892.58-82,107.42-76.13 |354,000.00-251,788.45-71.13 6001 EXPENDITURES 6002 PERSONAL SERVICES 2,826,180.00 152,191.71 2,377,344.65 448,835.35 84.12 |2,815,680.00 2,469,386.29 87.70 6210 SUPPLIES 71,810.00 1,344.29 29,386.78 42,423.22 40.92 |71,810.00 37,139.26 51.72 6300 NON-CAPITAL EQUIPMENT 5,000.00 2,600.00 2,400.00 52.00 |5,000.00 2,909.64 58.19 6350 SERVICES & OTHER CHARGES 219,183.00 12,045.43 128,360.08 90,822.92 58.56 |224,183.00 153,070.53 68.28 6001 EXPENDITURES 3,122,173.00 165,581.43 2,537,691.51 584,481.49 81.28 |3,116,673.00 2,662,505.72 85.43 8001 OTHER INCOME 8130 CONTRIBUTIONS/DONATIONS 2,202.00-2,202.00 |5,453.00 8170 ADMINISTRATION FEES 178.00-178.00 | 8001 OTHER INCOME 2,380.00-2,380.00 |5,453.00 8501 OTHER EXPENSE 8590 BANK CHARGES/CREDIT CD FEES |11.52 8501 OTHER EXPENSE |11.52 4000 REVENUES & EXPENSES 2,778,173.00 160,235.17 2,273,418.93 504,754.07 81.83 |2,762,673.00 2,416,181.79 87.46 165 FIRE PROTECTION 2,778,173.00 160,235.17 2,273,418.93 504,754.07 81.83 |2,762,673.00 2,416,181.79 87.46 Special Study Sessionl Meeting of December 20, 2010 (Item No. 2) Subject: November 2010 Monthly Financial Report Page 15 12/14/2010CITY OF ST LOUIS PARK 11:29:38R5509FIN1 LOGIS005 12Monthly Financial Report Page -By Co, Dept (pb), Object 2010 201011/30/2010 <==========================================>20092010 Description Annual Budget Current Period YTD Actual Budget Balance Per Cent Used | | Prior Year Budget Same Period Prior Year YTD Actual Per Cent Used 170 INSPECTIONAL SERVICES 4000 REVENUES & EXPENSES 4001 REVENUES 4100 LICENSES & PERMITS 1,987,288.00- 126,282.56- 1,951,651.04- 35,636.96- 98.21 |2,162,500.00-2,348,183.06- 108.59 4600 CHARGES FOR SERVICES 45.00-381.91-381.91 |2,277.11- 5200 MISCELLANEOUS 95.80-95.80 |25.19- 4001 REVENUES 1,987,288.00-126,327.56-1,952,128.75-35,159.25-98.23 |2,162,500.00-2,350,485.36-108.69 6001 EXPENDITURES 6002 PERSONAL SERVICES 1,713,100.00 92,435.66 1,446,846.98 266,253.02 84.46 |1,915,500.00 1,676,176.13 87.51 6210 SUPPLIES 21,500.00 1,109.32 5,393.05 16,106.95 25.08 |22,300.00 11,519.82 51.66 6350 SERVICES & OTHER CHARGES 63,627.00 7,532.79 57,648.64 5,978.36 90.60 |71,627.00 54,182.86 75.65 6001 EXPENDITURES 1,798,227.00 101,077.77 1,509,888.67 288,338.33 83.97 |2,009,427.00 1,741,878.81 86.69 8001 OTHER INCOME 8200 MISC RECEIPTS 100.00-100.00-| 8001 OTHER INCOME 100.00-100.00-| 8501 OTHER EXPENSE 8580 MISC EXPENSE 5.00 5.00-|20.90 8590 BANK CHARGES/CREDIT CD FEES 18,000.00 1,776.84 17,164.40 835.60 95.36 |18,000.00 19,171.43 106.51 8501 OTHER EXPENSE 18,000.00 1,776.84 17,169.40 830.60 95.39 |18,000.00 19,192.33 106.62 4000 REVENUES & EXPENSES 171,161.00-23,472.95-425,070.68-253,909.68 248.35 |135,073.00-589,414.22-436.37 170 INSPECTIONAL SERVICES 171,161.00-23,472.95-425,070.68-253,909.68 248.35 |135,073.00-589,414.22-436.37 Special Study Sessionl Meeting of December 20, 2010 (Item No. 2) Subject: November 2010 Monthly Financial Report Page 16 12/14/2010CITY OF ST LOUIS PARK 11:29:38R5509FIN1 LOGIS005 13Monthly Financial Report Page -By Co, Dept (pb), Object 2010 201011/30/2010 <==========================================>20092010 Description Annual Budget Current Period YTD Actual Budget Balance Per Cent Used | | Prior Year Budget Same Period Prior Year YTD Actual Per Cent Used 175 PUBLIC WORKS - ADMINISTRATION 4000 REVENUES & EXPENSES 4001 REVENUES 6001 EXPENDITURES 6002 PERSONAL SERVICES 825,800.00 48,065.18 754,017.48 71,782.52 91.31 |826,500.00 815,492.18 98.67 6210 SUPPLIES 4,000.00 197.57 2,956.93 1,043.07 73.92 |4,500.00 3,896.15 86.58 6300 NON-CAPITAL EQUIPMENT 1,000.00 1,000.00 |1,000.00 6350 SERVICES & OTHER CHARGES 24,100.00 269.50 21,962.67 2,137.33 91.13 |22,950.00 17,416.09 75.89 6001 EXPENDITURES 854,900.00 48,532.25 778,937.08 75,962.92 91.11 |854,950.00 836,804.42 97.88 8001 OTHER INCOME 8501 OTHER EXPENSE 8590 BANK CHARGES/CREDIT CD FEES 11.84 11.84 11.84-|21.74 8501 OTHER EXPENSE 11.84 11.84 11.84-|21.74 4000 REVENUES & EXPENSES 854,900.00 48,544.09 778,948.92 75,951.08 91.12 |854,950.00 836,826.16 97.88 175 PUBLIC WORKS - ADMINISTRATION 854,900.00 48,544.09 778,948.92 75,951.08 91.12 |854,950.00 836,826.16 97.88 Special Study Sessionl Meeting of December 20, 2010 (Item No. 2) Subject: November 2010 Monthly Financial Report Page 17 12/14/2010CITY OF ST LOUIS PARK 11:29:38R5509FIN1 LOGIS005 14Monthly Financial Report Page -By Co, Dept (pb), Object 2010 201011/30/2010 <==========================================>20092010 Description Annual Budget Current Period YTD Actual Budget Balance Per Cent Used | | Prior Year Budget Same Period Prior Year YTD Actual Per Cent Used 176 PUBLIC WORKS - ENGINEERING 4000 REVENUES & EXPENSES 4001 REVENUES 4100 LICENSES & PERMITS 75,000.00-4,210.00- 52,452.00- 22,548.00- 69.94 |75,000.00-63,210.00- 84.28 4600 CHARGES FOR SERVICES 330,000.00-1,650.00- 328,350.00-.50 |436,000.00-250.00- .06 4001 REVENUES 405,000.00-4,210.00-54,102.00-350,898.00-13.36 |511,000.00-63,460.00-12.42 6001 EXPENDITURES 6002 PERSONAL SERVICES 750,000.00 44,355.99 659,572.78 90,427.22 87.94 |844,000.00 679,810.87 80.55 6210 SUPPLIES 7,050.00 372.17 4,951.27 2,098.73 70.23 |7,050.00 3,132.15 44.43 6300 NON-CAPITAL EQUIPMENT 2,000.00 2,000.00 |2,000.00 695.00 34.75 6350 SERVICES & OTHER CHARGES 70,750.00 3,215.70 35,587.61 35,162.39 50.30 |70,750.00 50,966.99 72.04 6001 EXPENDITURES 829,800.00 47,943.86 700,111.66 129,688.34 84.37 |923,800.00 734,605.01 79.52 8001 OTHER INCOME 8501 OTHER EXPENSE 4000 REVENUES & EXPENSES 424,800.00 43,733.86 646,009.66 221,209.66-152.07 |412,800.00 671,145.01 162.58 176 PUBLIC WORKS - ENGINEERING 424,800.00 43,733.86 646,009.66 221,209.66-152.07 |412,800.00 671,145.01 162.58 Special Study Sessionl Meeting of December 20, 2010 (Item No. 2) Subject: November 2010 Monthly Financial Report Page 18 12/14/2010CITY OF ST LOUIS PARK 11:29:38R5509FIN1 LOGIS005 15Monthly Financial Report Page -By Co, Dept (pb), Object 2010 201011/30/2010 <==========================================>20092010 Description Annual Budget Current Period YTD Actual Budget Balance Per Cent Used | | Prior Year Budget Same Period Prior Year YTD Actual Per Cent Used 177 PUBLIC WORKS - OPERATIONS 4000 REVENUES & EXPENSES 4001 REVENUES 4100 LICENSES & PERMITS 120.00-375.00-860.00-740.00 716.67 |845.00- 4270 FINES & FORFEITS 250.00-139.43-110.57- 55.77 |500.00- 4300 INTERGOVERNMENTAL 450,000.00-479,310.00- 29,310.00 106.51 |490,000.00-455,022.50- 92.86 5200 MISCELLANEOUS 271.00-271.00-271.00 | 4001 REVENUES 450,370.00-646.00-480,580.43-30,210.43 106.71 |490,500.00-455,867.50-92.94 6001 EXPENDITURES 6002 PERSONAL SERVICES 1,230,300.00 75,054.29 1,087,254.14 143,045.86 88.37 |1,217,000.00 1,116,397.12 91.73 6210 SUPPLIES 479,500.00 2,135.45 538,283.47 58,783.47- 112.26 |374,500.00 356,421.30 95.17 6350 SERVICES & OTHER CHARGES 799,300.00 32,460.23 618,649.28 180,650.72 77.40 |894,300.00 689,673.75 77.12 6001 EXPENDITURES 2,509,100.00 109,649.97 2,244,186.89 264,913.11 89.44 |2,485,800.00 2,162,492.17 86.99 8001 OTHER INCOME 8501 OTHER EXPENSE 4000 REVENUES & EXPENSES 2,058,730.00 109,003.97 1,763,606.46 295,123.54 85.66 |1,995,300.00 1,706,624.67 85.53 177 PUBLIC WORKS - OPERATIONS 2,058,730.00 109,003.97 1,763,606.46 295,123.54 85.66 |1,995,300.00 1,706,624.67 85.53 01000 GENERAL FUND 51,000.00 840,120.09 5,051,779.02 5,000,779.02-9,905.45 |232,980.00 5,303,945.09 2,276.57 Special Study Sessionl Meeting of December 20, 2010 (Item No. 2) Subject: November 2010 Monthly Financial Report Page 19 12/14/2010CITY OF ST LOUIS PARK 11:29:38R5509FIN1 LOGIS005 16Monthly Financial Report Page -By Co, Dept (pb), Object 2010 201011/30/2010 <==========================================>20092010 Description Annual Budget Current Period YTD Actual Budget Balance Per Cent Used | | Prior Year Budget Same Period Prior Year YTD Actual Per Cent Used 02000 PARK AND RECREATION 200 ORGANIZED RECREATION 4000 REVENUES & EXPENSES 4001 REVENUES 4010 GENERAL PROPERTY TAXES 4,014,872.00-2,007,436.00- 2,007,436.00- 50.00 |4,073,118.00-2,036,559.00- 50.00 4300 INTERGOVERNMENTAL 44,702.00-22,351.00- 22,351.00- 50.00 |44,702.00-44,702.00- 100.00 4600 CHARGES FOR SERVICES 261,000.00-8,822.56- 241,406.69- 19,593.31- 92.49 |259,298.00-236,425.57- 91.18 5200 MISCELLANEOUS 31,400.00-650.00- 23,859.00-7,541.00- 75.98 |34,000.00-22,844.70- 67.19 4001 REVENUES 4,351,974.00-9,472.56-2,295,052.69-2,056,921.31-52.74 |4,411,118.00-2,340,531.27-53.06 6001 EXPENDITURES 6002 PERSONAL SERVICES 715,280.00 38,047.00 616,335.50 98,944.50 86.17 |729,162.00 637,011.64 87.36 6210 SUPPLIES 59,451.00 4,903.74 38,376.43 21,074.57 64.55 |59,451.00 32,042.57 53.90 6350 SERVICES & OTHER CHARGES 455,677.00 8,715.61 396,007.79 59,669.21 86.91 |502,597.00 418,242.06 83.22 6001 EXPENDITURES 1,230,408.00 51,666.35 1,050,719.72 179,688.28 85.40 |1,291,210.00 1,087,296.27 84.21 8001 OTHER INCOME 8100 INTEREST |760.08- 8130 CONTRIBUTIONS/DONATIONS 15,000.00-2,500.00- 8,126.13-6,873.87- 54.17 |14,000.00-3,250.00- 23.21 8200 MISC RECEIPTS 8,160.00-8,160.00 |2,890.00- 8001 OTHER INCOME 15,000.00-2,500.00-16,286.13-1,286.13 108.57 |14,000.00-6,900.08-49.29 8501 OTHER EXPENSE 8550 INTEREST/FINANCE CHARGES 39.00 39.00-|3.79 8590 BANK CHARGES/CREDIT CD FEES 15,000.00 1,232.61 18,478.79 3,478.79- 123.19 |15,879.22 8501 OTHER EXPENSE 15,000.00 1,232.61 18,517.79 3,517.79-123.45 |15,883.01 4000 REVENUES & EXPENSES 3,121,566.00-40,926.40 1,242,101.31-1,879,464.69-39.79 |3,133,908.00-1,244,252.07-39.70 200 ORGANIZED RECREATION 3,121,566.00-40,926.40 1,242,101.31-1,879,464.69-39.79 |3,133,908.00-1,244,252.07-39.70 Special Study Sessionl Meeting of December 20, 2010 (Item No. 2) Subject: November 2010 Monthly Financial Report Page 20 12/14/2010CITY OF ST LOUIS PARK 11:29:38R5509FIN1 LOGIS005 17Monthly Financial Report Page -By Co, Dept (pb), Object 2010 201011/30/2010 <==========================================>20092010 Description Annual Budget Current Period YTD Actual Budget Balance Per Cent Used | | Prior Year Budget Same Period Prior Year YTD Actual Per Cent Used 201 RECREATION CENTER 4000 REVENUES & EXPENSES 4001 REVENUES 4600 CHARGES FOR SERVICES 630,000.00- 12,726.00- 556,320.70- 73,679.30- 88.30 |679,000.00-504,456.68- 74.29 5200 MISCELLANEOUS 744,500.00- 42,647.10- 562,223.41- 182,276.59- 75.52 |722,000.00-518,502.52- 71.81 4001 REVENUES 1,374,500.00-55,373.10-1,118,544.11-255,955.89-81.38 |1,401,000.00-1,022,959.20-73.02 6001 EXPENDITURES 6002 PERSONAL SERVICES 785,638.00 29,885.31 675,349.43 110,288.57 85.96 |792,467.00 709,058.08 89.47 6210 SUPPLIES 170,350.00 2,833.37 156,920.72 13,429.28 92.12 |170,350.00 160,787.72 94.39 6350 SERVICES & OTHER CHARGES 480,870.00 20,342.61 416,359.29 64,510.71 86.58 |491,950.00 374,580.58 76.14 6001 EXPENDITURES 1,436,858.00 53,061.29 1,248,629.44 188,228.56 86.90 |1,454,767.00 1,244,426.38 85.54 8001 OTHER INCOME 8065 SALE OF SALVAGE 1,500.00-1,500.00 | 8001 OTHER INCOME 1,500.00-1,500.00 | 8501 OTHER EXPENSE 8550 INTEREST/FINANCE CHARGES |9.18 8501 OTHER EXPENSE |9.18 4000 REVENUES & EXPENSES 62,358.00 2,311.81-128,585.33 66,227.33-206.21 |53,767.00 221,476.36 411.92 201 RECREATION CENTER 62,358.00 2,311.81-128,585.33 66,227.33-206.21 |53,767.00 221,476.36 411.92 Special Study Sessionl Meeting of December 20, 2010 (Item No. 2) Subject: November 2010 Monthly Financial Report Page 21 12/14/2010CITY OF ST LOUIS PARK 11:29:38R5509FIN1 LOGIS005 18Monthly Financial Report Page -By Co, Dept (pb), Object 2010 201011/30/2010 <==========================================>20092010 Description Annual Budget Current Period YTD Actual Budget Balance Per Cent Used | | Prior Year Budget Same Period Prior Year YTD Actual Per Cent Used 202 PARK MAINTENANCE 4000 REVENUES & EXPENSES 4001 REVENUES 4100 LICENSES & PERMITS 6,275.00-622.00-5,653.00-9.91 |6,735.00- 4600 CHARGES FOR SERVICES 10,500.00-15.00- 10,485.00-.14 |10,700.00-130.00 1.21- 5200 MISCELLANEOUS 30,000.00-679.00- 26,876.35-3,123.65- 89.59 |26,000.00-39,835.73- 153.21 4001 REVENUES 46,775.00-679.00-27,513.35-19,261.65-58.82 |36,700.00-46,440.73-126.54 6001 EXPENDITURES 6002 PERSONAL SERVICES 926,500.00 51,588.77 883,871.45 42,628.55 95.40 |969,400.00 877,136.00 90.48 6210 SUPPLIES 97,755.00 2,980.89 82,391.14 15,363.86 84.28 |93,555.00 86,173.37 92.11 6300 NON-CAPITAL EQUIPMENT 4,120.00 4,353.75 233.75- 105.67 |4,120.00 4,276.24 103.79 6350 SERVICES & OTHER CHARGES 361,340.00 16,017.24 292,742.63 68,597.37 81.02 |369,510.00 306,649.47 82.99 7800 CAPITAL OUTLAY 7,000.00 7,000.00 |7,000.00 6001 EXPENDITURES 1,396,715.00 70,586.90 1,263,358.97 133,356.03 90.45 |1,443,585.00 1,274,235.08 88.27 8001 OTHER INCOME 8501 OTHER EXPENSE 4000 REVENUES & EXPENSES 1,349,940.00 69,907.90 1,235,845.62 114,094.38 91.55 |1,406,885.00 1,227,794.35 87.27 202 PARK MAINTENANCE 1,349,940.00 69,907.90 1,235,845.62 114,094.38 91.55 |1,406,885.00 1,227,794.35 87.27 Special Study Sessionl Meeting of December 20, 2010 (Item No. 2) Subject: November 2010 Monthly Financial Report Page 22 12/14/2010CITY OF ST LOUIS PARK 11:29:38R5509FIN1 LOGIS005 19Monthly Financial Report Page -By Co, Dept (pb), Object 2010 201011/30/2010 <==========================================>20092010 Description Annual Budget Current Period YTD Actual Budget Balance Per Cent Used | | Prior Year Budget Same Period Prior Year YTD Actual Per Cent Used 203 WESTWOOD HILLS 4000 REVENUES & EXPENSES 4001 REVENUES 4600 CHARGES FOR SERVICES 86,400.00-4,162.75- 95,707.54-9,307.54 110.77 |82,600.00-92,023.94- 111.41 5200 MISCELLANEOUS 2,347.25-2,347.25 |242.00- 4001 REVENUES 86,400.00-4,162.75-98,054.79-11,654.79 113.49 |82,600.00-92,265.94-111.70 6001 EXPENDITURES 6002 PERSONAL SERVICES 421,200.00 24,438.91 380,288.67 40,911.33 90.29 |420,586.00 388,833.68 92.45 6210 SUPPLIES 27,000.00 2,642.85 14,121.64 12,878.36 52.30 |26,700.00 15,441.89 57.83 6300 NON-CAPITAL EQUIPMENT 327.82 327.82-|500.00 6350 SERVICES & OTHER CHARGES 45,250.00 1,740.41 31,907.88 13,342.12 70.51 |44,500.00 32,615.93 73.29 6001 EXPENDITURES 493,450.00 28,822.17 426,646.01 66,803.99 86.46 |491,786.00 437,391.50 88.94 8001 OTHER INCOME 8130 CONTRIBUTIONS/DONATIONS 50.00- 2,760.00-2,760.00 |1,473.00- 8001 OTHER INCOME 50.00-2,760.00-2,760.00 |1,473.00- 8501 OTHER EXPENSE 8590 BANK CHARGES/CREDIT CD FEES 38.12 638.23 638.23-|571.76 8501 OTHER EXPENSE 38.12 638.23 638.23-|571.76 4000 REVENUES & EXPENSES 407,050.00 24,647.54 326,469.45 80,580.55 80.20 |409,186.00 344,224.32 84.12 203 WESTWOOD HILLS 407,050.00 24,647.54 326,469.45 80,580.55 80.20 |409,186.00 344,224.32 84.12 Special Study Sessionl Meeting of December 20, 2010 (Item No. 2) Subject: November 2010 Monthly Financial Report Page 23 12/14/2010CITY OF ST LOUIS PARK 11:29:38R5509FIN1 LOGIS005 20Monthly Financial Report Page -By Co, Dept (pb), Object 2010 201011/30/2010 <==========================================>20092010 Description Annual Budget Current Period YTD Actual Budget Balance Per Cent Used | | Prior Year Budget Same Period Prior Year YTD Actual Per Cent Used 204 ENVIRONMENT 4000 REVENUES & EXPENSES 4001 REVENUES 4270 FINES & FORFEITS 56.25-56.25 | 4600 CHARGES FOR SERVICES 86,000.00-7,324.52- 89,177.32-3,177.32 103.69 |110,000.00-162,539.38- 147.76 5200 MISCELLANEOUS |3,860.98- 4001 REVENUES 86,000.00-7,324.52-89,233.57-3,233.57 103.76 |110,000.00-166,400.36-151.27 6001 EXPENDITURES 6002 PERSONAL SERVICES 108,648.00 8,114.65 102,887.55 5,760.45 94.70 |108,898.00 100,079.76 91.90 6210 SUPPLIES 19,425.00 25.00 13,615.24 5,809.76 70.09 |19,425.00 15,441.22 79.49 6350 SERVICES & OTHER CHARGES 223,470.00 8,077.05 200,932.07 22,537.93 89.91 |158,470.00 288,588.89 182.11 6001 EXPENDITURES 351,543.00 16,216.70 317,434.86 34,108.14 90.30 |286,793.00 404,109.87 140.91 8001 OTHER INCOME 8130 CONTRIBUTIONS/DONATIONS 2,000.00 1,153.44 846.56 57.67 |2,000.00 1,800.00- 90.00- 8001 OTHER INCOME 2,000.00 1,153.44 846.56 57.67 |2,000.00 1,800.00-90.00- 8501 OTHER EXPENSE 4000 REVENUES & EXPENSES 267,543.00 8,892.18 229,354.73 38,188.27 85.73 |178,793.00 235,909.51 131.95 204 ENVIRONMENT 267,543.00 8,892.18 229,354.73 38,188.27 85.73 |178,793.00 235,909.51 131.95 Special Study Sessionl Meeting of December 20, 2010 (Item No. 2) Subject: November 2010 Monthly Financial Report Page 24 12/14/2010CITY OF ST LOUIS PARK 11:29:38R5509FIN1 LOGIS005 21Monthly Financial Report Page -By Co, Dept (pb), Object 2010 201011/30/2010 <==========================================>20092010 Description Annual Budget Current Period YTD Actual Budget Balance Per Cent Used | | Prior Year Budget Same Period Prior Year YTD Actual Per Cent Used 205 VEHICLE MAINTENANCE 4000 REVENUES & EXPENSES 4001 REVENUES 4300 INTERGOVERNMENTAL 26,517.00-985.72- 25,936.19-580.81- 97.81 |11,000.00-20,443.52- 185.85 4600 CHARGES FOR SERVICES |9,120.77- 5200 MISCELLANEOUS 101,000.00-8,388.42- 94,525.74-6,474.26- 93.59 |101,000.00-96,045.12- 95.09 4001 REVENUES 127,517.00-9,374.14-120,461.93-7,055.07-94.47 |112,000.00-125,609.41-112.15 6001 EXPENDITURES 6002 PERSONAL SERVICES 483,150.00 30,520.28 431,052.47 52,097.53 89.22 |483,300.00 440,423.84 91.13 6210 SUPPLIES 532,900.00 44,877.25 380,259.51 152,640.49 71.36 |502,650.00 324,535.76 64.56 6300 NON-CAPITAL EQUIPMENT |20.97 6350 SERVICES & OTHER CHARGES 146,142.00 10,031.42 138,907.02 7,234.98 95.05 |135,975.00 119,333.39 87.76 7800 CAPITAL OUTLAY |8,352.00 6001 EXPENDITURES 1,162,192.00 85,428.95 950,219.00 211,973.00 81.76 |1,130,277.00 884,313.96 78.24 8001 OTHER INCOME 8501 OTHER EXPENSE 4000 REVENUES & EXPENSES 1,034,675.00 76,054.81 829,757.07 204,917.93 80.19 |1,018,277.00 758,704.55 74.51 205 VEHICLE MAINTENANCE 1,034,675.00 76,054.81 829,757.07 204,917.93 80.19 |1,018,277.00 758,704.55 74.51 02000 PARK AND RECREATION 218,117.02 1,507,910.89 1,507,910.89-|67,000.00-1,543,857.02 2,304.26- Special Study Sessionl Meeting of December 20, 2010 (Item No. 2) Subject: November 2010 Monthly Financial Report Page 25 Meeting Date: December 20, 2010 Agenda Item #: 3a UNOFFICIAL MINUTES ECONOMIC DEVELOPMENT AUTHORITY ST. LOUIS PARK, MINNESOTA DECEMBER 6, 2010 1. Call to Order President Finkelstein called the meeting to order at 7:22 p.m. Commissioners present: President Finkelstein, Jeff Jacobs, Anne Mavity, Paul Omodt, Julia Ross, Susan Sanger, and Sue Santa. Commissioners absent: None. Staff present: City Manager (Mr. Harmening), Director of Community Development (Mr. Locke), Economic Development Coordinator (Mr. Hunt), and Recording Secretary (Ms. Hughes). 2. Roll Call 3. Approval of Minutes 3a. Economic Development Authority Minutes of November 15, 2010 The minutes were approved as presented. 4. Approval of Agenda The agenda was approved as presented. 5. Reports – None 6. Old Business - None 7. New Business 7a. Purchase Agreement for 7015 Walker Street (former Reynolds Welding Supply property) EDA Resolution No. 10-21 Mr. Hunt presented the staff report and advised that the VIC application has been filed with the MPCA in order to obtain a No Association and Off-Site Source determination from the contamination on the property. He noted that staff is currently arranging to meet with MPCA officials to discuss the EDA’s plans for the property. He stated that in addition, the EDA’s legal counsel prepared an opinion letter explaining the protections afforded the EDA pursuant to this purchase. He said the primary reason for acquiring the property is for blight removal and noted the property could be used for storm water improvements to serve the neighborhood or sold to a redeveloper. He stated the current value of the property is $495,000 and the EDA is purchasing the property for $260,000; short term costs are estimated at $65,000 and these costs include building demolition. He advised that the purchase of the property will be paid for through the City’s Development Fund and grants will be sought to address any future clean-up costs. He added that the closing date will be on or before December 31, 2010. EDA Meeting of December 20, 2010 (Item No. 3a) Page 2 Subject: Economic Development Authority Meeting Minutes of December 6, 2010 Commissioner Sanger stated that she understood why this property needs to be redeveloped and cleaned up, but expressed concern about the City putting itself in a position where it will need to apply for a State DEED grant to clean up the site, because funds may not be available given the State’s current budget deficit. She asked if the opinion letter from counsel was clear that the City would not have any liability for remediation costs necessary on the site, adding that she was concerned that the opinion letter does not address any liability the City might have if indeed pollution emanating from the site leaches out and pollutes properties adjacent to this site. Mr. Locke stated that the opinion letter states that the City did not put the contamination on this site and therefore is not responsible for it. He indicated that the City would be responsible if it did something on this site that makes worse the contamination already there or if the City introduces contamination on the site. He explained that just because the City is not legally responsible for any contamination, if the City owns the property and a situation arises as to who is responsible for any contamination, and the responsible party cannot be found or simply does not have any money to pay for clean-up, the property owner steps up to pay for clean-up or the property owner finds a way to pay for clean-up through grant dollars. He indicated that in this case, the analysis that was done suggests that the relative risk on the site is low and the City’s removal of the building is a step toward resolving the problems on the site. Commissioner Sanger asked if, based on this opinion letter, it is unlikely that the City would have any liability to neighboring properties in the event that a neighboring property was polluted based on substances founds on this site. Mr. Locke replied that this is correct. President Finkelstein stated that the opinion letter from counsel provides that a landowner is not responsible for a release or threatened release of a hazardous substance unless the landowner was, among other things, “engaged in the business of generating, transporting, storing, treating, or disposing of a hazardous substance at the property, or knowingly permitted others to engage in such a business at the property” or “knowingly permitted any person to make regular use of the property for disposal of waste.” He stated that the City has not engaged in any of these types of activities and as a practical matter, the City may want to remediate the property because it will have a difficult time finding who is responsible for pollution on the property. It was moved by Commissioner Santa, seconded by Commissioner Ross, to adopt EDA Resolution No. 10-21 Approving the Purchase Agreement Between the St. Louis Park Economic Development Authority and Mary and Karl Johnson. The motion passed 6-1 (Commissioner Sanger opposed). 8. Communications - None 9. Adjournment The meeting adjourned at 7:35 p.m. ______________________________________ ______________________________________ Secretary President Meeting Date: December 20, 2010 Agenda Item #: 5a Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Vendor Claims Study Session Discussion Item Written Report Other: TITLE: Vendor Claims. RECOMMENDED ACTION: Motion to accept for filing Vendor Claims for the period November 6, 2010 through December 17, 2010. POLICY CONSIDERATION: Not applicable. BACKGROUND: The Finance Department prepares this report for council’s review. FINANCIAL OR BUDGET CONSIDERATION: None. VISION CONSIDERATION: Not applicable. Attachments: Vendor Claims Prepared by: Connie Neubeck, Account Clerk 12/15/2010CITY OF ST LOUIS PARK 9:48:50R55CKSUM LOG23000VO 1Page -Council Check Summary 12/17/2010 -11/6/2010 Vendor AmountBusiness Unit Object 7,877.817015 WALKER-REYNOLDS WELD PROP OTHER CONTRACTUAL SERVICESAMEC GEOMATRIX INC 10,135.66DEVELOPMENT - EDA G&A OTHER CONTRACTUAL SERVICES 18,013.47 683.00DEVELOPMENT - EDA G&A OTHER CONTRACTUAL SERVICESANDERSEN, NORMAN 683.00 255.00DEVELOPMENT - EDA G&A SUBSCRIPTIONS/MEMBERSHIPSAPA 255.00 1,635.00HARD COAT OTHER CONTRACTUAL SERVICESEHLERS & ASSOCIATES INC 703.46WEST END TIF DIST G&A OTHER CONTRACTUAL SERVICES 149.23ELLIPSE ON EXC TIF DIST G&A OTHER CONTRACTUAL SERVICES 149.29TRUNK HWY 7 G&A OTHER CONTRACTUAL SERVICES 3,189.29HSTI G&A OTHER CONTRACTUAL SERVICES 149.29VICTORIA PONDS G&A OTHER CONTRACTUAL SERVICES 149.29PARK CENTER HOUSING G&A OTHER CONTRACTUAL SERVICES 1,320.96CSM TIF DIST G&A OTHER CONTRACTUAL SERVICES 190.00DEVELOPMENT - EDA G&A OTHER CONTRACTUAL SERVICES 307.62MILL CITY G&A OTHER CONTRACTUAL SERVICES 307.62PARK COMMONS G&A OTHER CONTRACTUAL SERVICES 465.95EDGEWOOD TIF DIST G & A OTHER CONTRACTUAL SERVICES 3,600.96ELMWOOD VILLAGE G & A OTHER CONTRACTUAL SERVICES 149.29WOLFE LAKE COMMERCIAL TIF G&A OTHER CONTRACTUAL SERVICES 307.63AQUILA COMMONS G & A OTHER CONTRACTUAL SERVICES 4,375.00HOIGAARD VILLAGE G & A OTHER CONTRACTUAL SERVICES 307.62HWY 7 BUSINESS CENTER G & A OTHER CONTRACTUAL SERVICES 17,457.50 480.00DEVELOPMENT - EDA G&A OTHER CONTRACTUAL SERVICESFORECAST PUBLIC ARTWORKS 480.00 234.11IMPOUND LOT / WATER TOWER PROP WATER SERVICEHENNEPIN COUNTY TREASURER 899,979.73WEST END TIF DIST G&A TAX INCREMENT - REPAYMENT 900,213.84 217.50BROOKSIDE REDEVELOPMENT LEGAL SERVICESKENNEDY & GRAVEN 187.50HARD COAT LEGAL SERVICES 905.507015 WALKER-REYNOLDS WELD PROP LEGAL SERVICES 3,303.00HSTI G&A LEGAL SERVICES 2,757.45DEVELOPMENT - EDA G&A LEGAL SERVICES 87.00MILL CITY TIF ADMIN LEGAL SERVICES EDA Meeting of December 20, 2010 (Item No. 5a) Subject: Vendor Claims Page 2 12/15/2010CITY OF ST LOUIS PARK 9:48:50R55CKSUM LOG23000VO 2Page -Council Check Summary 12/17/2010 -11/6/2010 Vendor AmountBusiness Unit Object 7,457.95 100.00HARD COAT OTHER CONTRACTUAL SERVICESLHB ENGINEERS & ARCHITECTS 1,425.00DEVELOPMENT - EDA G&A OTHER CONTRACTUAL SERVICES 1,525.00 3,000.00HRA LEVY G&A LEGAL SERVICESLOCKRIDGE GRINDAL NAUEN PLLP 3,000.00 290.00DEVELOPMENT - EDA G&A TRAININGMOBIUS INC 290.00 400.00DEVELOPMENT - EDA G&A SUBSCRIPTIONS/MEMBERSHIPSNAIOP 400.00 208.20DEVELOPMENT - EDA G&A TELEPHONENEXTEL COMMUNICATIONS 208.20 10.99DEVELOPMENT - EDA G&A OFFICE SUPPLIESOFFICE DEPOT 10.99 10.38DEVELOPMENT - EDA G&A OTHER CONTRACTUAL SERVICESQUICKSILVER EXPRESS COURIER 10.38 3,682.61DEVELOPMENT - EDA G&A PLANNINGSEH 3,682.61 1,362.02DEVELOPMENT - EDA G&A OTHER CONTRACTUAL SERVICESSRF CONSULTING GROUP INC 10,782.92DEVELOPMENT - EDA G&A PLANNING 12,144.94 Report Totals 965,832.88 EDA Meeting of December 20, 2010 (Item No. 5a) Subject: Vendor Claims Page 3 Meeting Date: December 20, 2010 Agenda Item #: 7a Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Public Hearing Study Session Discussion Item Written Report Other: TITLE: Establishment of the Hardcoat Tax Increment Financing District. RECOMMENDED ACTION: Motion to adopt the resolution approving the establishment of the Hardcoat Tax Increment Financing District within Redevelopment Project No. 1 (an Economic Development District). POLICY CONSIDERATION: Does the EDA support the establishment of the Hardcoat Tax Increment Financing District to facilitate the proposed purchase and renovation of 7301 - 7317 W. Lake Street (the former Flame Metals property)? Hardcoat’s CAP application was reviewed at the November 8th Study Session where it was favorably received. At its November 15th meeting, the City Council set a public hearing date of December 20th for the creation of the proposed TIF district. Potential business terms that would serve as the basis for a development contract were previewed at the December 13th Study Session. It is now time to take the final step in the TIF process which is to formally authorize the creation of the TIF district which enables the City to allocate tax increment generated from the proposed Hardcoat project to the Development Fund so as to reimburse a portion of the CAP funds provided to Hardcoat for the proposed project. Establishment of TIF districts also requires approval of the City Council. Thus, later in the evening the City Council will hold a public hearing on this topic, after which it will likewise be asked to approve the establishment of the Hardcoat TIF District. BACKGROUND: Hardcoat Inc. (located at 7300 W. Lake Street) wishes to acquire 7301 - 7317 W. Lake Street (the former Flame Metals property) located across the street to the south. The company plans to renovate the building and site, and relocate its operations there. The industrial building is approximately 33,600 square feet and was constructed in 1963. It was in very poor condition with numerous building code deficiencies. Following Flame Metals’ departure in 2009, the building’s interior has been emptied, thoroughly cleaned, repainted, and many (but not all) code deficiencies have been addressed. Nearly all the building’s operating systems have been removed. Hardcoat’s plans include a complete renovation of both the interior and exterior of the building as well as the construction of a small addition. Renovation will include a new roof, new exterior facelift, new windows and dock doors, new offices and interior spaces, new electrical and plumbing systems, new energy efficient HVAC equipment, new parking lot and landscaping, rain gardens and site amenities, as well as the construction of a 1,500 SF addition for office/conference space on the north side of the building. Once the renovation is complete, Hardcoat will initially occupy approximately 25,000 square feet of the building. The balance will be leased to a complementary business and provide Hardcoat with future expansion capacity. EDA Meeting of December 20, 2010 (Item No. 7a) Page 2 Subject: Establishment of the Hardcoat Tax Increment Financing District Request for Financial Assistance Hardcoat has negotiated a Purchase Agreement with A & D Holdings LLC, (the current owner of the Development property) for $1,010,000. The purchase price is $174,700 less than the property’s current assessed value. The total cost to renovate the building and grounds is estimated at $1.4 million. Of this amount, Hardcoat has applied for up to $420,000 in Construction Assistance: which equals approximately 33% of total renovation costs. When one adds the cost of the property ($1,010,000), the hard costs related to the building renovation ($1,400,000), the cost of new equipment ($500,000), as well as soft costs and permits estimated at ($136,500), the entire project will total nearly $3.05 million. Proposed Funding Sources As allowed by state statute, the source of the CAP funds is available tax increment revenue generated by five of the City’s TIF districts. These funds will be disbursed from the Development Fund. Given the size of Hardcoat’s CAP request, an Economic Development TIF District is proposed to reimburse a portion of the CAP funding provided to Hardcoat. It is estimated that the TIF district could generate approximately $207,000 over its 9-year term. Such an arrangement requires approval of an Interfund Loan Resolution. Structure of the CAP Funds CAP funds will be provided to Hardcoat upon prove-up that the property was purchased and the proposed construction costs were incurred. In order to remain in compliance with the TIF Act, the CAP funds will technically be applied to Hardcoat’s property acquisition costs as these are considered “qualified costs” under the rules for Economic Development TIF Districts. The funding will be structured as a forgivable loan through a mortgage. Provided the building is held and properly maintained by Hardcoat for 5 years after project completion, the entirety of the loan could be forgiven. If the property is sold within 5 years of project completion, the loan must be repaid along with 6% accrued interest from the date funding was provided. TIF District Approvals Hardcoat’s CAP application was reviewed at the November 8th Study Session where it was favorably received. At its November 15th meeting, the City Council set a public hearing date of December 20th for the creation of the proposed economic development TIF district. Business terms that would serve as the basis for a development contract were previewed at the December 13th Study Session. The Planning Commission reviewed the Hardcoat Tax Increment Financing Plan on December 15th and determined it was in conformance with the city’s Comprehensive Plan. Synopsis of the Proposed TIF District In order to reimburse the EDA for a portion of the CAP funds provided to Hardcoat, a new economic development TIF district is proposed. Tax increment generated from this new district will then be deposited back into the Development Fund. The proposed Hardcoat TIF District consists of the two former Flame Metals parcels: 7301 & 7317 W. Lake Street. The proposed TIF District is within the city’s Redevelopment Project Area as is statutorily required. Inclusion of the proposed project within a designated Redevelopment Project Area gives the EDA/Council the authority to assist with all the economic development actions necessary to implement Hardcoat project. EDA Meeting of December 20, 2010 (Item No. 7a) Page 3 Subject: Establishment of the Hardcoat Tax Increment Financing District Attached is a copy of the Tax Increment Financing Plan establishing the Hardcoat Tax Increment Financing District. The Plan was prepared by the EDA’s TIF consultant, Ehlers & Associates. TIF Plans establish the geographic boundaries and financial parameters of a particular TIF district as well as the findings which statutorily qualify the district. In a general sense, TIF plans may be viewed as enabling legislation. The specific mutual obligations between the EDA and the Developer are contained in a separate Development Contract between the parties. It should be noted that the financing uses and project costs reflected within the Uses of Funds section of the proposed TIF Plan is a not-to-exceed budget and not the actual expected project budget. Feasibility and Duration of the Hardcoat TIF District The financial assistance to be provided to Hardcoat to facilitate the proposed project meets the requirements necessary to create an Economic Development TIF District. Those requirements include: (1) encouraging a manufacturer to remain in the state; (2) increasing employment; and (3) enhancing the tax base. Hardcoat’s proposed project qualifies as an Economic Development TIF District. It is estimated that upon completion the proposed project will generate approximately $207,000 over the 9-year term of the district. FINANCIAL OR BUDGET CONSIDERATION: Authorizing the establishment of the Hardcoat TIF District does not, in itself, commit the City to any specific level of assistance for the proposed project. Procedurally it simply creates the funding vehicle that enables the EDA to reimburse itself for a portion of the CAP funds provided to Hardcoat. The terms and amount of CAP assistance are specified within the Development Contract with Hardcoat which also is to be considered at Monday night’s EDA meeting. VISION CONSIDERATION: Hardcoat’s proposal to purchase and completely renovate the former Flame Metals building is consistent with elements of Vision St. Louis Park as it facilitates and promotes environmental stewardship and green development. Attachments: Resolution Hardcoat Tax Increment Financing Plan Summary Hardcoat Tax Increment Financing Plan Prepared by: Greg Hunt, Economic Development Coordinator Reviewed by: Kevin Locke, Community Development Director Approved by: Tom Harmening, EDA Executive Director and City Manager EDA Meeting of December 20, 2010 (Item No. 7a) Page 4 Subject: Establishment of the Hardcoat Tax Increment Financing District ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY CITY OF ST. LOUIS PARK HENNEPIN COUNTY STATE OF MINNESOTA EDA RESOLUTION NO. 10-_____ RESOLUTION ADOPTING A MODIFICATION TO THE REDEVELOPMENT PLAN FOR REDEVELOPMENT PROJECT NO. 1, ESTABLISHING THE HARDCOAT TAX INCREMENT FINANCING DISTRICT THEREIN AND ADOPTING A TAX INCREMENT FINANCING PLAN THEREFOR. WHEREAS, the Board of Commissioners (the "Board") of the St. Louis Park Economic Development Authority (the "EDA") desires the adoption of a Modification to the Redevelopment Plan (the "Redevelopment Plan Modification") for Redevelopment Project No. 1 (the "Project Area"), the establishment of the Hardcoat Tax Increment Financing District (the "District") therein, and adoption of a Tax Increment Financing Plan (the "TIF Plan") for the District (the Redevelopment Plan Modification and the TIF Plan are referred to collectively herein as the "Plans"), all pursuant to and in conformity with applicable law, including Minnesota Statutes, Sections 469.090 to 469.1082, and Sections 469.174 to 469.1799, inclusive, as amended (the "Act"), all as reflected in the Plans and presented for the Board's consideration; and WHEREAS, the EDA has investigated the facts relating to the Plans and has caused the Plans to be prepared; and WHEREAS, the EDA has performed all actions required by law to be performed prior to the adoption of the Plans, and has requested that the City Planning Commission provide for review of and written comment on the Plans and that the Council schedule a public hearing on the Plans upon published notice as required by law. NOW, THEREFORE, BE IT RESOLVED by the Board as follows: 1. The EDA hereby finds that the District is in the public interest and is an "economic development district" under Minnesota Statutes, Section 469.174, Subd. 12, and finds that the Plans conform in all respects to the requirements of the Act and will help fulfill a need to develop an area of the State of Minnesota which is already built up and that the adoption of the proposed Plans will help provide employment opportunities in the State and will result in the preservation and enhancement of the tax base of the City and the State because it will discourage commerce and industry from moving their operations to another state or municipality and thereby serves a public purpose. The facts supporting this finding are set forth in the Plans, which are incorporated by reference. EDA Meeting of December 20, 2010 (Item No. 7a) Page 5 Subject: Establishment of the Hardcoat Tax Increment Financing District 2. The EDA further finds that the Plans will afford maximum opportunity, consistent with the sound needs for the City as a whole, for the development or redevelopment of the Project Area by private enterprise in that the intent is to provide only that public assistance necessary to make the private developments financially feasible. 3. The boundaries of the Project Area are not being expanded. 4. The EDA elects to calculate fiscal disparities for the District in accordance with Minnesota Statutes, Section 469.177, Subd. 3, clause b, which means the fiscal disparities contribution would be taken from inside the District. 5. Conditioned upon the approval thereof by the City Council following its public hearing thereon, the Plans, as presented to the EDA on this date, are hereby approved, established and adopted and shall be placed on file in the office of the Economic Development Coordinator of the EDA. 6. Upon approval of the Plans by the City Council, the staff, the EDA's advisors and legal counsel are authorized and directed to proceed with the implementation of the Plans and for this purpose to negotiate, draft, prepare and present to this Board for its consideration all further plans, resolutions, documents and contracts necessary for this purpose. Approval of the Plans does not constitute approval of any project or Development Agreement with any developer. 7. Upon approval of the Plans by the City Council, the Economic Development Coordinator of the EDA is authorized and directed to forward a copy of the Plans to the Minnesota Department of Revenue and the Office of the State Auditor pursuant to Minnesota Statutes 469.175, Subd. 4a. 8. The Economic Development Coordinator of the EDA is authorized and directed to forward a copy of the Plans to the Hennepin County Auditor and request that the Auditor certify the original tax capacity of the District as described in the Plans, all in accordance with Minnesota Statutes 469.177. Reviewed for Administration: Adopted by the Economic Development Authority December 20, 2010 Executive Director President Attest Secretary Tax Increment Financing District Overview City of St. Louis Park Hardcoat Tax Increment Financing District The following summary contains an overview of the basic elements of the Tax Increment Financing Plan for the Hardcoat Tax Increment Financing District. More detailed information on each of these topics can be found in the complete TIF Plan. Proposed action: Establishment of the Hardcoat Tax Increment Financing District ("District") and the adoption of a Tax Increment Financing Plan. ("TIF Plan") Modification of the Redevelopment Plan for Redevelopment Project No. 1, which includes the establishment of the Hardcoat TIF District. Type of TIF District: An Economic Development District Parcel Numbers: 20-117-21-21-0093 17-117-21-34-0027 Proposed Development: The District is being created to facilitate the renovation of the existing Flame Metals’ building by Hardcoat within the City. The company plans to renovate the building and site, and relocate its operations there. The existing industrial building is approximately 33,600 square feet and was constructed in 1963. The proposed project includes a complete renovation of both the interior and exterior of the building as well as the addition of approximately 1,500 square feet of office/conference space on the north side of the building. Please see Appendix A of the TIF Plan for a more detailed project description. Maximum duration: Pursuant to M.S., Section 469.175, Subd. 1, and M.S., Section 469.176, Subd. 1, the duration of the District must be indicated within the TIF Plan. Pursuant to M.S., Section 469.176, Subd. 1b, the duration of the District will be 8 years after receipt of the first increment by the EDA or City. The date of receipt by the City of the first tax increment is expected to be 2013. Thus, it is estimated that the District, including any modifications of the TIF Plan for subsequent phases or other changes, would terminate after 2021, or when the TIF Plan is satisfied. If increment is received in 2012, the term of the District will be 2020. The EDA or City reserves the right to decertify the District prior to the legally required date. Estimated annual tax increment: Up to $50,144 EDA Meeting of December 20, 2010 (Item No. 7a) Subject: Establishment of the Hardcoat Tax Increment Financing District Page 6 Page 2 Authorized uses: The TIF Plan contains a budget that authorizes the maximum amount that may be expended: Land Acquisition......................................................................$50,000 Site Improvements/Preparation..............................................$160,000 Public Utilities .........................................................................$75,000 Streets and Sidewalks ..............................................................$32,861 Administrative Costs (up to 10%)............................................$37,619 PROJECT COSTS TOTAL...................................................$335,480 Interest .....................................................................................$20,706 PROJECT COST AND INTEREST COST TOTAL .......$376,186 See Subsection 2-10, pages 2-5 and 2-6 of the TIF Plan for the full budget authorization. Form of financing: The EDA will be providing Hardcoat upfront funding from its Construction Assistance Program in an amount up to $420,000 (as authorized through the approved Spending Plan, pursuant to Laws 2010, Chapter 216, Section 32, which amended M.S. Section 469.176 by adding Subdivision 4m). The District is being created to repay the EDA for a portion of these dollars as tax increment is received. Administrative fee: Up to 10% of annual increment, if costs are justified. It is estimated that the City will only utilize 5% of annual increment. Interfund Loan Requirement: If the City wants to pay for administrative expenditures from a tax increment fund, it is recommended that a resolution authorizing a loan from another fund be passed PRIOR to the issuance of the check. 4 Year Activity Rule (§ 469.176 Subd. 6) After four years from the date of certification of the District one of the following activities must have been commenced on each parcel in the District: • Demolition • Rehabilitation • Renovation • Other site preparation (not including utility services such as sewer and water) If the activity has not been started by approximately December 2014, no additional tax increment may be taken from that parcel until the commencement of a qualifying activity. 5 Year Rule (§ 469.1763 Subd. 3) Within 5 years of certification revenues derived from tax increments must be expended or obligated to be expended. Any obligations in the District made after approximately December 2015, will not be eligible for repayment from tax increments. The reasons and facts supporting the findings for the adoption of the TIF Plan for the District, as required pursuant to M.S., Section 469.175, Subd. 3, are included in Exhibit F of the TIF Plan EDA Meeting of December 20, 2010 (Item No. 7a) Subject: Establishment of the Hardcoat Tax Increment Financing District Page 7 Page 3 MAPS OF REDEVELOPMENT PROJECT NO. 1 AND THE HARDCOAT TAX INCREMENT FINANCING DISTRICT EDA Meeting of December 20, 2010 (Item No. 7a) Subject: Establishment of the Hardcoat Tax Increment Financing District Page 8 Page 4 EDA Meeting of December 20, 2010 (Item No. 7a) Subject: Establishment of the Hardcoat Tax Increment Financing District Page 9 As of December 16, 2010 Draft for Public Hearing Modification to the Redevelopment Plan for Redevelopment Project No. 1 and the Tax Increment Financing Plan for the establishment of the Hardcoat Tax Increment Financing District (an economic development district) within Redevelopment Project No. 1 St. Louis Park Economic Development Authority City of St. Louis Park Hennepin County State of Minnesota Public Hearing: December 20, 2010 Adopted: Prepared by: EHLERS & ASSOCIATES, INC. 3060 Centre Pointe Drive, Roseville, Minnesota 55113-1105 651-697-8500 fax: 651-697-8555 www.ehlers-inc.com EDA Meeting of December 20, 2010 (Item No. 7a) Subject: Establishment of the Hardcoat Tax Increment Financing District Page 10 Table of Contents (for reference purposes only) Section 1 - Modification to the Redevelopment Plan for Redevelopment Project No. 1 Foreword ............................................................. 1-1 Section 2 - Tax Increment Financing Plan for the Hardcoat Tax Increment Financing District Subsection 2-1. Foreword............................................... 2-1 Subsection 2-2. Statutory Authority........................................ 2-1 Subsection 2-3. Statement of Objectives ................................... 2-1 Subsection 2-4. Redevelopment Plan Overview .............................. 2-1 Subsection 2-5. Description of Property in the District and Property To Be Acquired . 2-2 Subsection 2-6. Classification of the District................................. 2-2 Subsection 2-7. Duration and First Year of Tax Increment of the District ........... 2-3 Subsection 2-8. Original Tax Capacity, Tax Rate and Estimated Captured Net Tax Capacity Value/Increment and Notification of Prior Planned Improvements ................ 2-3 Subsection 2-9. Sources of Revenue/Bonds to be Issued ...................... 2-4 Subsection 2-10. Uses of Funds ........................................... 2-5 Subsection 2-11. Fiscal Disparities Election.................................. 2-6 Subsection 2-12. Business Subsidies....................................... 2-6 Subsection 2-13. County Road Costs ....................................... 2-7 Subsection 2-14. Estimated Impact on Other Taxing Jurisdictions................. 2-8 Subsection 2-15. Supporting Documentation ................................. 2-9 Subsection 2-16. Definition of Tax Increment Revenues ........................ 2-9 Subsection 2-17. Modifications to the District................................ 2-10 Subsection 2-18. Administrative Expenses .................................. 2-10 Subsection 2-19. Limitation of Increment ................................... 2-11 Subsection 2-20. Use of Tax Increment .................................... 2-12 Subsection 2-21. Excess Increments ...................................... 2-12 Subsection 2-22. Requirements for Agreements with the Developer .............. 2-13 Subsection 2-23. Assessment Agreements ................................. 2-13 Subsection 2-24. Administration of the District ............................... 2-13 Subsection 2-25. Annual Disclosure Requirements ........................... 2-13 Subsection 2-26. Reasonable Expectations ................................. 2-14 Subsection 2-27. Summary.............................................. 2-14 Appendix A Project Description ...................................................... A-1 Appendix B Maps of Redevelopment Project No. 1 and the District .......................... B-1 Appendix C Description of Property to be Included in the District ............................ C-1 Appendix D Estimated Cash Flow for the District ........................................ D-1 Appendix E Minnesota Business Assistance Form ....................................... E-1 EDA Meeting of December 20, 2010 (Item No. 7a) Subject: Establishment of the Hardcoat Tax Increment Financing District Page 11 Appendix F Findings Including But/For Qualifications..................................... F-1 EDA Meeting of December 20, 2010 (Item No. 7a) Subject: Establishment of the Hardcoat Tax Increment Financing District Page 12 St. Louis Park Economic Development Authority Modification to the Redevelopment Plan for Redevelopment Project No. 1 1-1 Section 1 - Modification to the Redevelopment Plan for Redevelopment Project No. 1 Foreword The following text represents a Modification to the Redevelopment Plan for Redevelopment Project No. 1. This modification represents a continuation of the goals and objectives set forth in the Redevelopment Plan for Redevelopment Project No. 1. Generally, the substantive changes include the establishment of Hardcoat Tax Increment Financing District. For further information, a review of the Redevelopment Plan for Redevelopment Project No. 1 is recommended. It is available from the Economic Development Coordinator at the City of St. Louis Park. Other relevant information is contained in the Tax Increment Financing Plans for the Tax Increment Financing Districts located within Redevelopment Project No. 1. EDA Meeting of December 20, 2010 (Item No. 7a) Subject: Establishment of the Hardcoat Tax Increment Financing District Page 13 St. Louis Park Economic Development Authority Tax Increment Financing Plan for the Hardcoat Tax Increment Financing District 2-1 Section 2 - Tax Increment Financing Plan for the Hardcoat Tax Increment Financing District Subsection 2-1. Foreword The St. Louis Park Economic Development Authority (the "EDA"), the City of St. Louis Park (the "City"), staff and consultants have prepared the following information to expedite the establishment of the Hardcoat Tax Increment Financing District (the "District"), an economic development tax increment financing district, located in Redevelopment Project No. 1. Subsection 2-2. Statutory Authority Within the City, there exist areas where public involvement is necessary to cause development or redevelopment to occur. To this end, the EDA and City have certain statutory powers pursuant to Minnesota Statutes ("M.S."), Sections 469.090 to 469.1082, inclusive, as amended, and M.S., Sections 469.174 to 469.1799, inclusive, as amended (the "Tax Increment Financing Act" or "TIF Act"), to assist in financing public costs related to this project. This District is being created pusuant to 2010 Laws of Minnesota, Chapter 216, H.F. No. 2695, Section 31,which amended M.S., Section 469.176, Subd. 4c by adding clause (d). This section contains the Tax Increment Financing Plan (the "TIF Plan") for the District. Other relevant information is contained in the Modification to the Redevelopment Plan for Redevelopment Project No. 1. Subsection 2-3. Statement of Objectives The District currently consists of two parcels of land and adjacent and internal rights-of-way. The District is being created to facilitate the redevelopment of an existing building within the City. Please see Appendix A for further project information. The EDA is working towards finalizing a development agreement with Hardcoat Incorporated for the renovation of the existing building. Commencement of the renovation is scheduled to begin in the spring of 2011 and no later than July 1, 2011. This TIF Plan is expected to achieve many of the objectives outlined in the Redevelopment Plan for Redevelopment Project No. 1. The activities contemplated in the Modification to the Redevelopment Plan and the TIF Plan do not preclude the undertaking of other qualified development or redevelopment activities. These activities are anticipated to occur over the life of Redevelopment Project No. 1 and the District. Subsection 2-4. Redevelopment Plan Overview 1. Property to be Acquired - Selected property located within the District may be acquired by the EDA or City and is further described in this TIF Plan. 2. Relocation - Relocation services, to the extent required by law, are available pursuant to M.S., Chapter 117 and other relevant state and federal laws. 3. Upon approval of a developer's plan relating to the project and completion of the necessary legal requirements, the EDA or City may sell to a developer selected properties that it may acquire within the District or may lease land or facilities to a developer. 4. The EDA or City may perform or provide for some or all necessary acquisition, construction, EDA Meeting of December 20, 2010 (Item No. 7a) Subject: Establishment of the Hardcoat Tax Increment Financing District Page 14 St. Louis Park Economic Development Authority Tax Increment Financing Plan for the Hardcoat Tax Increment Financing District 2-2 relocation, demolition, and required utilities and public street work within the District. 5. The City proposes both public and private infrastructure within the District. The proposed reuse of private property within the District will be for an office building/manufacturing facility, and there will be continued operation of Redevelopment Project No. 1 after the capital improvements within Redevelopment Project No. 1 have been completed. Subsection 2-5. Description of Property in the District and Property To Be Acquired The District encompasses all property and adjacent rights-of-way and abutting roadways identified by the parcels listed in Appendix C of this TIF Plan. Please also see the map in Appendix B for further information on the location of the District. The EDA or City may acquire any parcel within the District including interior and adjacent street rights of way. Any properties identified for acquisition will be acquired by the EDA or City only in order to accomplish one or more of the following: storm sewer improvements; provide land for needed public streets, utilities and facilities; carry out land acquisition, site improvements, clearance and/or development to accomplish the uses and objectives set forth in this plan. The EDA or City may acquire property by gift, dedication, condemnation or direct purchase from willing sellers in order to achieve the objectives of this TIF Plan. Such acquisitions will be undertaken only when there is assurance of funding to finance the acquisition and related costs. Subsection 2-6. Classification of the District The EDA and City, in determining the need to create a tax increment financing district in accordance with M.S., Sections 469.174 to 469.1799, as amended, inclusive, find that the District, to be established, is an economic development district pursuant to M.S., Section 469.174, Subd. 12 as defined below: "Economic development district" means a type of tax increment financing district which consists of any project, or portions of a project, which the authority finds to be in the public interest because: (1) it will discourage commerce, industry, or manufacturing from moving their operations to another state or municipality; or (2) it will result in increased employment in the state; or (3) it will result in preservation and enhancement of the tax base of the state. The District is in the public interest because it will meet the statutory requirements from clauses 1, 2 and 3. Pursuant to M.S., Section 469.176, Subd. 4c, revenue derived from tax increment from an economic development district may not be used to provide improvements, loans, subsidies, grants, interest rate subsidies, or assistance in any form to developments consisting of buildings and ancillary facilities, if more than 15 percent of the buildings and facilities (determined on the basis of square footage) are used for a purpose other than: (1) The manufacturing or production of tangible personal property, including processing resulting in the change in condition of the property; (2) Warehousing, storage, and distribution of tangible personal property, excluding retail sales; (3) Research and development related to the activities listed in items (1) or (2); (4) Telemarketing if that activity is the exclusive use of the property; (5) Tourism facilities; or EDA Meeting of December 20, 2010 (Item No. 7a) Subject: Establishment of the Hardcoat Tax Increment Financing District Page 15 St. Louis Park Economic Development Authority Tax Increment Financing Plan for the Hardcoat Tax Increment Financing District 2-3 (6) Qualified border retail facilities; (7) Space necessary for and related to the activities listed in items (1) to (6) For Districts which the request for certification was made after June 30, 2009, and no later than June 30, 2011, the City can find that the District to be established is an economic development district pursuant to M.S., Section 469.176, Subd. 4c(d) as defined below: Notwithstanding the requirements of paragraph (a) and the finding requirements of section 469.174, subdivision 12, tax increments from an economic development district may be used to provide improvements, loans, subsidies, grants, interest rate subsidies, or assistance in any form to developments consisting of buildings and ancillary facilities, if all the following conditions are met: (1) the municipality finds that the project will create or retain jobs in this state, including construction jobs, and that construction of the project would not have commenced before July 1, 2011, without the authority providing assistance under the provisions of this paragraph; (2) construction of the project begins no later than July 1, 2011; and (3) the request for certification of the district is made no later than June 30, 2011. The City is establishing the District in order to assist an existing company with the renovation of a manufacturing facility to be used for high-tech surface coating applications. The City finds that this renovation will ensure the retention of 14 employees from its current location. The City anticipates the retention or creation of additional construction jobs in connection with the renovation. The City has confirmed that without tax increment financing assistance, the renovation would not commence before July 1, 2011 (see Appendix F for the relevant facts supporting these findings). With such assistance, construction is scheduled to commence in early spring of 2011. If construction does not commence by such date, tax increments may only be used for the purposes allowed under M.S., Section 469.176, Subd. 4c(a). Pursuant to M.S., Section 469.176, Subd. 7, the District does not contain any parcel or part of a parcel that qualified under the provisions of M.S., Sections 273.111 or 273.112 or Chapter 473H for taxes payable in any of the five calendar years before the filing of the request for certification of the District. Subsection 2-7. Duration and First Year of Tax Increment of the District Pursuant to M.S., Section 469.175, Subd. 1, and M.S., Section 469.176, Subd. 1, the duration of the District must be indicated within the TIF Plan. Pursuant to M.S., Section 469.176, Subd. 1b., the duration of the District will be 8 years after receipt of the first increment by the EDA or City. The date of receipt by the City of the first tax increment is expected to be 2013. Thus, it is estimated that the District, including any modifications of the TIF Plan for subsequent phases or other changes, would terminate after 2021, or when the TIF Plan is satisfied. If increment is received in 2012, the term of the District will be 2020. The EDA or City reserves the right to decertify the District prior to the legally required date. Subsection 2-8. Original Tax Capacity, Tax Rate and Estimated Captured Net Tax Capacity Value/Increment and Notification of Prior Planned Improvements Pursuant to M.S., Section 469.174, Subd. 7 and M.S., Section 469.177, Subd. 1, the Original Net Tax Capacity (ONTC) as certified for the District will be based on the market values placed on the property by the assessor in 2010 for taxes payable 2011. Pursuant to M.S., Section 469.177, Subds. 1 and 2, the County Auditor shall certify in each year (beginning EDA Meeting of December 20, 2010 (Item No. 7a) Subject: Establishment of the Hardcoat Tax Increment Financing District Page 16 St. Louis Park Economic Development Authority Tax Increment Financing Plan for the Hardcoat Tax Increment Financing District 2-4 in the payment year 2013) the amount by which the original value 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 adjustments, negotiated or court-ordered abatements; 4. Change in the use of the property and classification; 5. Change in state law governing class rates; or 6. Change in previously issued building permits. In any year in which the current Net Tax Capacity (NTC) value of the District declines below the ONTC, no value will be captured and no tax increment will be payable to the EDA or City. The original local tax rate for the District will be the local tax rate for taxes payable 2011, assuming the request for certification is made before June 30, 2011. The ONTC and the Original Local Tax Rate for the District appear in the table below. Pursuant to M.S., Section 469.174 Subd. 4 and M.S., Section 469.177, Subd. 1, 2, and 4, the estimated Captured Net Tax Capacity (CTC) of the District, within Redevelopment Project No. 1, upon completion of the projects within the District, will annually approximate tax increment revenues as shown in the table below. The EDA and City request 100 percent of the available increase in tax capacity for repayment of its obligations and current expenditures, beginning in the tax year payable 2013. The Project Tax Capacity (PTC) listed is an estimate of values when the projects within the District are completed. Project Estimated Tax Capacity upon Completion (PTC)$76,458 Original Estimated Net Tax Capacity (ONTC)$22,944 Fiscal Disparities Election $12,820 Estimated Captured Tax Capacity (CTC)$40,694 Original Local Tax Rate 1.23222 EstimatedPay 2011 Estimated Annual Tax Increment (CTC x Local Tax Rate)$50,144 Percent Retained by the EDA 100% Tax capacity includes a 5% inflation factor for the duration of the District. The tax capacity included in thischart is the estimated tax capacity of the District in year 9. The tax capacity of the District in year one isestimated to be $51,750. Pursuant to M.S., Section 469.177, Subd. 4, the EDA shall, after a due and diligent search, accompany its request for certification to the County Auditor or its notice of the District enlargement pursuant to M.S., Section 469.175, Subd. 4, with a listing of all properties within the District or area of enlargement for which building permits have been issued during the eighteen (18) months immediately preceding approval of the TIF Plan by the municipality pursuant to M.S., Section 469.175, Subd. 3. The County Auditor shall increase the original net tax capacity of the District by the net tax capacity of improvements for which a building permit was issued. The City is reviewing the area to be included in the District to determine if any building permits have been issued during the 18 months immediately preceding approval of the TIF Plan by the City. EDA Meeting of December 20, 2010 (Item No. 7a) Subject: Establishment of the Hardcoat Tax Increment Financing District Page 17 St. Louis Park Economic Development Authority Tax Increment Financing Plan for the Hardcoat Tax Increment Financing District 2-5 Subsection 2-9. Sources of Revenue/Bonds to be Issued The costs outlined in the Uses of Funds will be financed initially through funds available pursuant to the City's duly approved Spending Plan, as authorized under Laws 2010, Chapter 216, Section 32, which amended M.S. Section 469.176 by adding Subdivision 4m. The City intends to provide up-front assistance to the developer from Spending Plan funds, and to replenish these funds through an interfund loan/transfer of tax increments from the District as received. The City reserves the right to issue bonds or incur other indebtedness pursuant to this TIF Plan. Any refunding amounts will be deemed a budgeted cost without a formal TIF Plan Modification. This provision does not obligate the City to incur debt. The City will issue bonds or incur other debt only upon the determination that such action is in the best interest of the City. The total estimated tax increment revenues for the District are expected to be approximately $376,186, as shown in the table below: SOURCES OF FUNDS TOTAL Tax Increment $326,186 Interest $50,000 TOTAL $376,186 The EDA or City may issue bonds (as defined in the TIF Act) secured in whole or in part with tax increments from the District in a maximum principal amount of $355,480. Such bonds may be in the form of pay-as-you- go notes, revenue bonds or notes, general obligation bonds, or interfund loans. This estimate of total bonded indebtedness is a cumulative statement of authority under this TIF Plan as of the date of approval. Subsection 2-10. Uses of Funds Currently under consideration for the District is a proposal to facilitate the renovation of an existing building within the City. The EDA and City have determined that it will be necessary to provide up-front assistance to the project(s) for certain District costs, as described above, and to reimburse itself for these costs through tax increments as received. The EDA has studied the feasibility of the development or redevelopment of property in and around the District. To facilitate the establishment and development or redevelopment of the District, this TIF Plan authorizes the use of tax increment financing to pay for the cost of certain eligible expenses. The estimate of public costs and uses of funds associated with the District is outlined in the table on the following page. EDA Meeting of December 20, 2010 (Item No. 7a) Subject: Establishment of the Hardcoat Tax Increment Financing District Page 18 St. Louis Park Economic Development Authority Tax Increment Financing Plan for the Hardcoat Tax Increment Financing District 2-6 USES OF TAX INCREMENT FUNDS TOTAL Land/Building Acquisition $50,000 Site Improvements/Preparation $160,000 Public Utilities $75,000 Streets and Sidewalks $32,861 Administrative Costs (up to 10%)$37,619 PROJECT COST TOTAL $355,480 Interest $20,706 PROJECT AND INTEREST COSTS TOTAL $376,186 For purposes of OSA reporting forms, uses of funds include interfund loans, bond principal, TIF Note principal, and transfers, all in the principal amount of up to $376,186. These amounts are not cumulative, but represent the various forms of "bonds" included within the concept of bonded indebtedness under the TIF Act. The total project cost, including financing costs (interest) listed in the table above does not exceed the total projected tax increments for the District as shown in Appendix D. Estimated capital and administrative costs listed above are subject to change among categories by modification of the TIF Plan without hearings and notices as required for approval of the initial TIF Plan, so long as the total capital and administrative costs combined do not exceed the total listed above. Further, the EDA may spend up to 20 percent of the tax increments from the District for activities (described in the table above) located outside the boundaries of the District but within the boundaries of the Project (including administrative costs, which are considered to be spend outside the District), subject to all other terms and conditions of this TIF Plan. Subsection 2-11. Fiscal Disparities Election Pursuant to M.S., Section 469.177, Subd. 3, clause b, the EDA or City must calculate fiscal disparities using the following method of computation: (b) The following method of computation applies to any economic development district for which the request for certification was made after June 30, 1997, and to any other district for which the governing body, by resolution approving the tax increment financing plan pursuant to M.S., Section 469.177, Subd. 3, elects: (1) The original net tax capacity shall be determined before the application of the fiscal disparity provisions of Chapter 276A or 473F. The current net tax capacity shall exclude any fiscal disparity commercial-industrial net tax capacity increase between the original year and the current year multiplied by the fiscal disparity ratio determined pursuant to M.S., Section 276A.06, subdivision 7 or M.S., Section 473F.08, subdivision 6. Where the original net tax capacity is equal to or greater than the current net tax capacity, there is no captured tax capacity and no tax increment determination. Where the original tax capacity is less than the current tax capacity, the difference between the original net tax capacity and EDA Meeting of December 20, 2010 (Item No. 7a) Subject: Establishment of the Hardcoat Tax Increment Financing District Page 19 St. Louis Park Economic Development Authority Tax Increment Financing Plan for the Hardcoat Tax Increment Financing District 2-7 the current net tax capacity is the captured net tax capacity. This amount less any portion thereof which the authority has designated, in its tax increment financing plan, to share with the local taxing districts is the retained captured net tax capacity of the authority. (2) The county auditor shall exclude the retained captured net tax capacity of the authority from the net tax capacity of the local taxing districts in determining local taxing district tax rates. The local tax rates so determined are to be extended against the retained captured net tax capacity of the authority as well as the net tax capacity of the local taxing districts. The tax generated by the extension of the less of (A) the local taxing district tax rates or (B) the original local tax rate to the retained captured net tax capacity of the authority is the tax increment of the authority. Subsection 2-12. Business Subsidies Pursuant to M.S., Section 116J.993, Subd. 3, the following forms of financial assistance are not considered a business subsidy: (1) A business subsidy of less than $150,000; (2) Assistance that is generally available to all businesses or to a general class of similar businesses, such as a line of business, size, location, or similar general criteria; (3) Public improvements to buildings or lands owned by the state or local government that serve a public purpose and do not principally benefit a single business or defined group of businesses at the time the improvements are made; (4) Redevelopment property polluted by contaminants as defined in M.S., Section 116J.552, Subd. 3; (5) Assistance provided for the sole purpose of renovating old or decaying building stock or bringing it up to code and assistance provided for designated historic preservation districts, provided that the assistance is equal to or less than 50% of the total cost; (6) Assistance to provide job readiness and training services if the sole purpose of the assistance is to provide those services; (7) Assistance for housing; (8) Assistance for pollution control or abatement, including assistance for a tax increment financing hazardous substance subdistrict as defined under M.S., Section 469.174, Subd. 23; (9) Assistance for energy conservation; (10) Tax reductions resulting from conformity with federal tax law; (11) Workers' compensation and unemployment compensation; (12) Benefits derived from regulation; (13) Indirect benefits derived from assistance to educational institutions; (14) Funds from bonds allocated under chapter 474A, bonds issued to refund outstanding bonds, and bonds issued for the benefit of an organization described in section 501 (c) (3) of the Internal Revenue Code of 1986, as amended through December 31, 1999; (15) Assistance for a collaboration between a Minnesota higher education institution and a business; (16) Assistance for a tax increment financing soils condition district as defined under M.S., Section 469.174, Subd. 19; (17) Redevelopment when the recipient's investment in the purchase of the site and in site preparation is 70 percent or more of the assessor's current year's estimated market value; (18) General changes in tax increment financing law and other general tax law changes of a principally technical nature. (19) Federal assistance until the assistance has been repaid to, and reinvested by, the state or local government agency; (20) Funds from dock and wharf bonds issued by a seaway port authority; EDA Meeting of December 20, 2010 (Item No. 7a) Subject: Establishment of the Hardcoat Tax Increment Financing District Page 20 St. Louis Park Economic Development Authority Tax Increment Financing Plan for the Hardcoat Tax Increment Financing District 2-8 (21) Business loans and loan guarantees of $150,000 or less; and (22) Federal loan funds provided through the United States Department of Commerce, Economic Development Administration. The EDA will comply with M.S., Sections 116J.993 to 116J.995 to the extent the tax increment assistance under this TIF Plan does not fall under any of the above exemptions. Subsection 2-13. County Road Costs Pursuant to M.S., Section 469.175, Subd. 1a, the county board may require the EDA or City to pay for all or part of the cost of county road improvements if the proposed development to be assisted by tax increment will, in the judgment of the county, substantially increase the use of county roads requiring construction of road improvements or other road costs and if the road improvements are not scheduled within the next five years under a capital improvement plan or within five years under another county plan. If the county elects to use increments to improve county roads, it must notify the EDA or City within forty- five days of receipt of this TIF Plan. In the opinion of the EDA and City and consultants, the proposed development outlined in this TIF Plan will have little or no impact upon county roads, therefore the TIF Plan was not forwarded to the county 45 days prior to the public hearing. The EDA and City are aware that the county could claim that tax increment should be used for county roads, even after the public hearing. Subsection 2-14. Estimated Impact on Other Taxing Jurisdictions The estimated impact on other taxing jurisdictions assumes that the redevelopment contemplated by the TIF Plan would occur without the creation of the District. However, the EDA or City has determined that such development or redevelopment would not occur "but for" tax increment financing and that, therefore, the fiscal impact on other taxing jurisdictions is $0. The estimated fiscal impact of the District would be as follows if the "but for" test was not met: IMPACT ON TAX BASE Estimated 2010/Pay 2011 Total Net Tax Capacity Estimated Captured Tax Capacity (CTC) Upon Completion Percent of CTC to Entity Total Hennepin County 1,323,583,748 40,694 0.0031% City of St. Louis Park 50,983,386 40,694 0.0798% St. Louis Park ISD No. 283 48,177,047 40,694 0.0845% EDA Meeting of December 20, 2010 (Item No. 7a) Subject: Establishment of the Hardcoat Tax Increment Financing District Page 21 St. Louis Park Economic Development Authority Tax Increment Financing Plan for the Hardcoat Tax Increment Financing District 2-9 IMPACT ON TAX RATES Estimated Pay 2011 Extension Rates Percent of Total CTC Potential Taxes Hennepin County 0.462500 37.53% 40,694 18,821 City of St. Louis Park 0.440200 35.72% 40,694 17,913 St. Louis Park ISD No. 283 0.221640 17.99% 40,694 9,019 Other 0.107880 8.75%40,694 4,390 Total 1.232220 100.00%50,144 The estimates listed above display the captured tax capacity when all construction is completed. The tax rate used for calculations is the estimated Pay 2011 rate. The total net capacity for the entities listed above are based on estimated Pay 2011 figures. The District will be certified under the actual Pay 2011 rates, which were unavailable at the time this TIF Plan was prepared. Pursuant to M.S. Section 469.175 Subd. 2(b): (1) Estimate of total tax increment. It is estimated that the total amount of tax increment that will be generated over the life of the District is $326,185; (2) Probable impact of the District on city provided services and ability to issue debt. A minimal impact of the District on police protection is expected. With any addition of new residents or businesses, police calls for service will be increased. New developments add an increase in traffic, and additional overall demands to the call load. The City does not expect that the proposed development, in and of itself, will necessitate new capital investment in vehicles or require that the City expand its staff. The probable impact of the District on fire protection is not expected to be significant. Typically new buildings generate few calls, if any, and are of superior construction and are sprinklered. The impact of the District on public infrastructure is expected to be minimal. The development is not expected to significantly impact any traffic movements in the area. The current infrastructure for sanitary sewer, storm sewer and water will be able to handle the additional volume generated from the proposed development. Based on the development plans, there are no additional costs associated with street maintenance, sweeping, plowing, lighting and sidewalks. The probable impact of any District general obligation tax increment bonds on the ability to issue debt for general fund purposes is expected to be minimal. It is not anticipated that there will be any general obligation debt issued in relation to this project, therefore there will be no impact on the City's ability to issue future debt or on the City's debt limit. (3) Estimated amount of tax increment attributable to school district levies. It is estimated that the amount of tax increments over the life of the District that would be attributable to school district levies, assuming the school district's share of the total local tax rate for all taxing jurisdictions remained the same, is $58,681; (4) Estimated amount of tax increment attributable to county levies. It is estimated that the amount of tax increments over the life of the District that would be attributable to county levies, assuming the EDA Meeting of December 20, 2010 (Item No. 7a) Subject: Establishment of the Hardcoat Tax Increment Financing District Page 22 St. Louis Park Economic Development Authority Tax Increment Financing Plan for the Hardcoat Tax Increment Financing District 2-10 county's share of the total local tax rate for all taxing jurisdictions remained the same, is $122,417; (5) Additional information requested by the county or school district. The City is not aware of any standard questions in a county or school district written policy regarding tax increment districts and impact on county or school district services. The county or school district must request additional information pursuant to M.S. Section 469.175 Subd. 2(b) within 15 days after receipt of the tax increment financing plan. No requests for additional information from the county or school district regarding the proposed development for the District have been received. Subsection 2-15. Supporting Documentation Pursuant to M.S. Section 469.175, Subd. 1 (a), clause 7 the TIF Plan must contain identification and description of studies and analyses used to make the determination set forth in M.S. Section 469.175, Subd. 3, clause (b)(2) and the findings are required in the resolution approving the District. Following is a list of reports and studies on file at the City that support the EDA and City's findings: • Construction Assistance Program Application by Hardcoat, LLC, 2010 Subsection 2-16. Definition of Tax Increment Revenues Pursuant to M.S., Section 469.174, Subd. 25, tax increment revenues derived from a tax increment financing district include all of the following potential revenue sources: 1. Taxes paid by the captured net tax capacity, but excluding any excess taxes, as computed under M.S., Section 469.177; 2. The proceeds from the sale or lease of property, tangible or intangible, to the extent the property was purchased by the Authority with tax increments; 3. Principal and interest received on loans or other advances made by the Authority with tax increments; 4. Interest or other investment earnings on or from tax increments; 5. Repayments or return of tax increments made to the Authority under agreements for districts for which the request for certification was made after August 1, 1993; and 6. The market value homestead credit paid to the Authority under M.S., Section 273.1384. Subsection 2-17. Modifications to the District In accordance with M.S., Section 469.175, Subd. 4, any: 1. Reduction or enlargement of the geographic area of the District, if the reduction does not meet the requirements of M.S., Section 469.175, Subd. 4(e); 2. Increase in amount of bonded indebtedness to be incurred; 3. A determination to capitalize interest on debt if that determination was not a part of the original TIF Plan; 4. Increase in the portion of the captured net tax capacity to be retained by the EDA or City; 5. Increase in the estimate of the cost of the District, including administrative expenses, that will be paid or financed with tax increment from the District; or 6. Designation of additional property to be acquired by the EDA or City, shall be approved upon the notice and after the discussion, public hearing and findings required for approval EDA Meeting of December 20, 2010 (Item No. 7a) Subject: Establishment of the Hardcoat Tax Increment Financing District Page 23 St. Louis Park Economic Development Authority Tax Increment Financing Plan for the Hardcoat Tax Increment Financing District 2-11 of the original TIF Plan. If the District qualifies for certification only under M.S. Section 469.176, Subd. 4c(d), than the District boundaries may not be enlarged after July 1, 2011. Pursuant to M.S., Section 469.175 Subd. 4(f), the geographic area of the District may be reduced following the date of certification of the original net tax capacity by the county auditor, but shall not be enlarged after five years following the date of certification of the original net tax capacity by the county auditor. If an economic development district is enlarged, the reasons and supporting facts for the determination that the addition to the District meets the criteria of M.S., Section 469.174, Subd. 12, must be documented in writing and retained. The requirements of this paragraph do not apply if (1) the only modification is elimination of parcel(s) from the District and (2) (A) the current net tax capacity of the parcel(s) eliminated from the District equals or exceeds the net tax capacity of those parcel(s) in the District's original net tax capacity or (B) the EDA agrees that, notwithstanding M.S., Section 469.177, Subd. 1, the original net tax capacity will be reduced by no more than the current net tax capacity of the parcel(s) eliminated from the District. Economic Development districts, for which the request for certification date was made after June 30, 2009, may be enlarged provided the request for certification date of the enlargement is made prior to June 30, 2011. The EDA or City must notify the County Auditor of any modification to the District. Modifications to the District in the form of a budget modification or an expansion of the boundaries will be recorded in the TIF Plan. Subsection 2-18. Administrative Expenses In accordance with M.S., Section 469.174, Subd. 14, administrative expenses means all expenditures of the EDA or City, other than: 1. Amounts paid for the purchase of land; 2. 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; 3. Relocation benefits paid to or services provided for persons residing or businesses located in the District; or 4. Amounts used to pay principal or interest on, fund a reserve for, or sell at a discount bonds issued pursuant to M.S., Section 469.178; or 5. Amounts used to pay other financial obligations to the extent those obligations were used to finance costs described in clauses (1) to (3). For districts for which the request for certification were made before August 1, 1979, or after June 30, 1982, and before August 1, 2001, administrative expenses also include amounts paid for services provided by bond counsel, fiscal consultants, and planning or economic development consultants. Pursuant to M.S., Section 469.176, Subd. 3, tax increment may be used to pay any authorized and documented administrative expenses for the District up to but not to exceed 10 percent of the total estimated tax increment expenditures authorized by the TIF Plan or the total tax increments, as defined by M.S., Section 469.174, Subd. 25, clause (1), from the District, whichever is less. For districts for which certification was requested after July 31, 2001, no tax increment may be used to pay any administrative expenses for District costs which exceed ten percent of total estimated tax increment expenditures authorized by the TIF Plan or the total tax increments, as defined in M.S., Section 469.174, Subd. 25, clause (1), from the District, whichever is less. Pursuant to M.S., Section 469.176, Subd. 4h, tax increments may be used to pay for the County's actual EDA Meeting of December 20, 2010 (Item No. 7a) Subject: Establishment of the Hardcoat Tax Increment Financing District Page 24 St. Louis Park Economic Development Authority Tax Increment Financing Plan for the Hardcoat Tax Increment Financing District 2-12 administrative expenses incurred in connection with the District and are not subject to the percentage limits of M.S., Section 469.176, Subd. 3. The county may require payment of those expenses by February 15 of the year following the year the expenses were incurred. Pursuant to M.S., Section 469. 177, Subd. 11, the County Treasurer shall deduct an amount (currently .36 percent) of any increment distributed to the EDA or City and the County Treasurer shall pay the amount deducted to the State Treasurer for deposit in the state general fund to be appropriated to the State Auditor for the cost of financial reporting of tax increment financing information and the cost of examining and auditing authorities' use of tax increment financing. This amount may be adjusted annually by the Commissioner of Revenue. Subsection 2-19. Limitation of Increment The tax increment pledged to the payment of bonds and interest thereon may be discharged and the District may be terminated if sufficient funds have been irrevocably deposited in the debt service fund or other escrow account held in trust for all outstanding bonds to provide for the payment of the bonds at maturity or redemption date. Pursuant to M.S., Section 469.176, Subd. 6: if, after four years from the date of certification of the original net tax capacity of the tax increment financing district pursuant to M.S., Section 469.177, no demolition, rehabilitation or renovation of property or other site preparation, including qualified improvement of a street adjacent to a parcel 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 authority 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 net tax capacity of that parcel shall be excluded from the original net tax capacity of the tax increment financing district. If the authority or the owner of the parcel subsequently commences demolition, rehabilitation or renovation or other site preparation on that parcel including qualified improvement of a street adjacent to that parcel, in accordance with the tax increment financing plan, the authority shall certify to the county auditor that the activity has commenced and the county auditor shall certify the net tax capacity thereof as most recently certified by the commissioner of revenue and add it to the original net tax capacity of the tax increment financing district. The county auditor must enforce the provisions of this subdivision. The authority must submit to the county auditor evidence that the required activity has taken place for each parcel in the district. The evidence for a parcel must be submitted by February 1 of the fifth year following the year in which the parcel was certified as included in the district. For purposes of this subdivision, qualified improvements of a street are limited to (1) construction or opening of a new street, (2) relocation of a street, and (3) substantial reconstruction or rebuilding of an existing street. The EDA or City or a property owner must improve parcels within the District by approximately December 2015 and report such actions to the County Auditor. Subsection 2-20. Use of Tax Increment The EDA or City hereby determines that it will use 100 percent of the captured net tax capacity of taxable property located in the District for the following purposes: EDA Meeting of December 20, 2010 (Item No. 7a) Subject: Establishment of the Hardcoat Tax Increment Financing District Page 25 St. Louis Park Economic Development Authority Tax Increment Financing Plan for the Hardcoat Tax Increment Financing District 2-13 1. To pay the principal of and interest on bonds issued to finance a project; 2. to finance, or otherwise pay the cost of redevelopment of the Redevelopment Project No. 1 pursuant to M.S., Sections 469.090 to 469.1082; 3. To pay for project costs as identified in the budget set forth in the TIF Plan; 4. To finance, or otherwise pay for other purposes as provided in M.S., Section 469.176, Subd. 4; 5. To pay principal and interest on any loans, advances or other payments made to or on behalf of the EDA or City or for the benefit of Redevelopment Project No. 1 by a developer; 6. To finance or otherwise pay premiums and other costs for insurance or other security guaranteeing the payment when due of principal of and interest on bonds pursuant to the TIF Plan or pursuant to M.S., Chapter 462C. M.S., Sections 469.152 through 469.165, and/or M.S., Sections 469.178; and 7. To accumulate or maintain a reserve securing the payment when due of the principal and interest on the tax increment bonds or bonds issued pursuant to M.S., Chapter 462C, M.S., Sections 469.152 through 469.165, and/or M.S., Sections 469.178. These revenues shall not be used to circumvent any levy limitations applicable to the City nor for other purposes prohibited by M.S., Section 469.176, Subd. 4. Tax increments generated in the District will be paid by Hennepin County to the EDA for the Tax Increment Fund of said District. The EDA or City will pay to the developer(s) annually an amount not to exceed an amount as specified in a developer's agreement to reimburse the costs of land acquisition, public improvements, demolition and relocation, site preparation, and administration. If the request for certification of the District was made after June 30, 2009 and no later than June 30, 2011 and construction commenced in the District by July 1, 2011, tax increments from the District may also be used to provide improvements, loans, subsidies, grants, interest rate subsidies, or assistance in any form to developments consisting of buildings and ancillary facilities. Remaining increment funds will be used for EDA or City administration (up to 10 percent) and for the costs of public improvement activities outside the District. Subsection 2-21. Excess Increments Excess increments, as defined in M.S., Section 469.176, Subd. 2, shall be used only to do one or more of the following: 1. Prepay any outstanding bonds; 2. Discharge the pledge of tax increment for any outstanding bonds; 3. Pay into an escrow account dedicated to the payment of any outstanding bonds; or 4. Return the excess to the County Auditor for redistribution to the respective taxing jurisdictions in proportion to their local tax rates. The EDA or City must spend or return the excess increments under paragraph (c) within nine months after the end of the year. In addition, the EDA or City may, subject to the limitations set forth herein, choose to modify the TIF Plan in order to finance additional public costs in Redevelopment Project No. 1 or the District. Subsection 2-22. Requirements for Agreements with the Developer The EDA or City will review any proposal for private development to determine its conformance with the Redevelopment Plan and with applicable municipal ordinances and codes. To facilitate this effort, the following documents may be requested for review and approval: site plan, construction, mechanical, and electrical system drawings, landscaping plan, grading and storm drainage plan, signage system plan, and any other drawings or narrative deemed necessary by the EDA or City to demonstrate the conformance of the development with City plans and ordinances. The EDA or City may also use the Agreements to address other EDA Meeting of December 20, 2010 (Item No. 7a) Subject: Establishment of the Hardcoat Tax Increment Financing District Page 26 St. Louis Park Economic Development Authority Tax Increment Financing Plan for the Hardcoat Tax Increment Financing District 2-14 issues related to the development. Pursuant to M.S., Section 469.176, Subd. 5, no more than 10 percent, by acreage, of the property to be acquired in the District as set forth in the TIF Plan shall at any time be owned by the EDA or City as a result of acquisition with the proceeds of bonds issued pursuant to M.S., Section 469.178 to which tax increments from property acquired is pledged, unless prior to acquisition in excess of 10 percent of the acreage, the EDA or City concluded an agreement for the development of the property acquired and which provides recourse for the EDA or City should the development not be completed. Subsection 2-23. Assessment Agreements Pursuant to M.S., Section 469.177, Subd. 8, the EDA or City may enter into a written assessment agreement in recordable form with the developer of property within the District which establishes a minimum market value of the land and completed improvements for the duration of the District. The assessment 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 assessment agreement appears, in the judgment of the assessor, to be a reasonable estimate, the County Assessor shall also certify the minimum market value agreement. Subsection 2-24. Administration of the District Administration of the District will be handled by the Economic Development Coordinator. Subsection 2-25. Annual Disclosure Requirements Pursuant to M.S., Section 469.175, Subds. 5, 6, and 6b the EDA or City must undertake financial reporting for all tax increment financing districts to the Office of the State Auditor, County Board and County Auditor on or before August 1 of each year. M.S., Section 469.175, Subd. 5 also provides that an annual statement shall be published in a newspaper of general circulation in the City on or before August 15. If the City fails to make a disclosure or submit a report containing the information required by M.S., Section 469.175 Subd. 5 and Subd. 6, the OSA will direct the County Auditor to withhold the distribution of tax increment from the District. Subsection 2-26. Reasonable Expectations As required by the TIF Act, in establishing the District, the determination has been made that the anticipated development would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the District permitted by the TIF Plan. In making said determination, reliance has been placed upon written representation made by the developer to such effects and upon EDA and City staff awareness of the feasibility of developing the project site(s) within the District. A comparative analysis of estimated market values both with and without establishment of the District and the use of tax increments has been performed as described above. Such analysis is included with the cashflow in Appendix D, and indicates that the increase in estimated market value of the proposed development (less the indicated subtractions) exceeds the estimated market value of the site absent the establishment of the District and the use of tax increments. EDA Meeting of December 20, 2010 (Item No. 7a) Subject: Establishment of the Hardcoat Tax Increment Financing District Page 27 St. Louis Park Economic Development Authority Tax Increment Financing Plan for the Hardcoat Tax Increment Financing District 2-15 Other Limitations on the Use of Tax Increment 1. General Limitations. All revenue derived from tax increment shall be used in accordance with the TIF Plan. The revenues shall be used to finance, or otherwise pay the cost of redevelopment of the Redevelopment Project No. 1 pursuant to M.S., Sections 469.090 to 469.1082. Tax increments may not be used to circumvent existing levy limit law. No tax increment may be used for the acquisition, construction, renovation, operation, or maintenance of a building to be used primarily and regularly for conducting the business of a municipality, county, school district, or any other local unit of government or the state or federal government. This provision does not prohibit the use of revenues derived from tax increments for the construction or renovation of a parking structure. 2. Pooling Limitations. At least 80 percent of tax increments from the District must be expended on activities in the District or to pay bonds, to the extent that the proceeds of the bonds were used to finance activities within said district or to pay, or secure payment of, debt service on credit enhanced bonds. Not more than 20 percent of said tax increments may be expended, through a development fund or otherwise, on activities outside of the District except to pay, or secure payment of, debt service on credit enhanced bonds. For purposes of applying this restriction, all administrative expenses must be treated as if they were solely for activities outside of the District. 3. Five Year Limitation on Commitment of Tax Increments. Tax increments derived from the District shall be deemed to have satisfied the 80 percent test set forth in paragraph (2) above only if the five year rule set forth in M.S., Section 469.1763, Subd. 3, has been satisfied; and beginning with the sixth year following certification of the District, 80 percent of said tax increments that remain after expenditures permitted under said five year rule must be used only to pay previously committed expenditures or credit enhanced bonds as more fully set forth in M.S., Section 469.1763, Subd. 5. Subsection 2-27. Summary The St. Louis Park Economic Development Authority is establishing the District to preserve and enhance the tax base, and create and retain jobs, including construction jobs, in the City. The TIF Plan for the District was prepared by Ehlers & Associates, Inc., 3060 Centre Pointe Drive, Roseville, Minnesota 55113-1105, telephone (651) 697-8500. EDA Meeting of December 20, 2010 (Item No. 7a) Subject: Establishment of the Hardcoat Tax Increment Financing District Page 28 Appendix A-1 Appendix A Project Description Hardcoat Inc, (located at 7300 W. Lake Street) is looking to acquire the former Flame Metals property located across the street to the south at 7317 W. Lake Street. The company plans to renovate the building and site, and relocate its operations there. The existing industrial building is approximately 33,600 square feet and was constructed in 1963. Both the interior and exterior had numerous building code deficiencies. Following Flame Metals’ departure in 2009, the building's interior has been emptied, thoroughly cleaned, repainted, and many (but not all) code deficiencies have been addressed. Nearly all the building’s operating systems have been removed. The proposed project includes a complete renovation of both the interior and exterior of the building as well as the addition of approximately 1,500 square feet of office/conference space on the north side of the building. Renovation will include a new roof, new exterior facelift, new windows and dock doors, new offices and interior spaces, new electrical and plumbing systems, new energy efficient HVAC equipment, new parking lot and landscaping, rain gardens and site amenities, as well as the construction of a 1,500 SF addition for office/conference space. Once the renovation is complete, Hardcoat will initially occupy approximately 25,000 square feet of the building. The balance will be leased to a complementary business and provide Hardcoat with future expansion capacity. EDA Meeting of December 20, 2010 (Item No. 7a) Subject: Establishment of the Hardcoat Tax Increment Financing District Page 29 Appendix B-1 Appendix B Maps of Redevelopment Project No. 1 and the District EDA Meeting of December 20, 2010 (Item No. 7a) Subject: Establishment of the Hardcoat Tax Increment Financing District Page 30 Appendix B-2 EDA Meeting of December 20, 2010 (Item No. 7a) Subject: Establishment of the Hardcoat Tax Increment Financing District Page 31 Appendix C-1 Appendix C Description of Property to be Included in the District The District encompasses all property and adjacent rights-of-way and abutting roadways identified by the parcels listed below. Parcel Numbers Address Owner 20-117-21-21-0093 7317 Lake Street W A&D Holdings, LLC 17-117-21-34-0027 7301 Lake Street W A&D Holdings, LLC EDA Meeting of December 20, 2010 (Item No. 7a) Subject: Establishment of the Hardcoat Tax Increment Financing District Page 32 Appendix D-1 Appendix D Estimated Cash Flow for the District EDA Meeting of December 20, 2010 (Item No. 7a) Subject: Establishment of the Hardcoat Tax Increment Financing District Page 33 12/14/2010Base Value Assumptions - Page 1Hardcoat TIF DistrictCity of St. Louis ParkFlame Metal RedevelopmentASSUMPTIONS AND RATESDistrictType:Economic DevelopmentMaximum/Frozen Local Tax Rate: 123.2220% Pay 2011 EstDistrict Name/Number:Current Local Tax Rate: (Use lesser of Current or Max.)123.2220% Pay 2011 EstCounty District #:State-wide Tax Rate (Comm./Ind. only used for total taxes)50.0000% Pay 2011 EstFirst Year Construction or Inflation on Value2011Market Value Tax Rate (Used for total taxes)0.16692% Pay 2011 EstExisting District - Specify No. Years RemainingInflation Rate - Every Year:5.00%PROPERTY TAX CLASSES AND CLASS RATES:Interest Rate:1.00%Exempt Class Rate (Exempt)0.00%Present Value Date:1-Feb-11Commercial Industrial Preferred Class Rate (C/I Pref.)First Period Ending1-Aug-11First $150,0001.50%Tax Year District was Certified:Pay 2011Over $150,0002.00%Cashflow Assumes First Tax Increment For District:2013Commercial Industrial Class Rate (C/I)2.00%Years of Tax Increment9Rental Housing Class Rate (Rental)1.25%Assumes Last Year of Tax Increment2021Affordable Rental Housing Class Rate (Aff. Rental)0.75%Fiscal Disparities Election [Outside (A), Inside (B), or NA]Inside(B)Non-Homestead Residential (Non-H Res.)1.25%Incremental or Total Fiscal DisparitiesIncrementalHomestead Residental Class Rate (Hmstd. Res.)Fiscal Disparities Contribution Ratio34.8706% Pay 2011First $500,0001.00%Fiscal Disparities Metro-Wide Tax Rate129.3270% Pay 2011 EstOver $500,0001.25%Agricultural Non-Homestead1.00%PercentageTax Year Property CurrentClassAfterLandBuildingTotal Of Value Used Original Original Tax OriginalAfter ConversionMap # PIDOwner Address Market Value Market Value Market Value for District Market Value Market Value Class Tax Capacity Conversion Orig. Tax Cap. Area/Phase20-117-21-21-00937317 Lake St 742,000 248,000990,000100% 990,000 Pay 2011 C/I Pref.19,050 C/I Pref.19,050 117-117-21-34-00277301 Lake St 194,7000194,700100% 194,700 Pay 2011 C/I3,894 C/I3,894 1936,700 248,000 1,184,7001,184,700 22,94422,944Note:1. Base values are for pay 2011.2. Located in SD 283, WS 3. BASE VALUE INFORMATION (Original Tax Capacity)Prepared by Ehlers & Associates, Inc. - Estimates OnlyN:\Minnsota\St. Louis Park\Housing - Economic - Redevelopment\TIF\TIF Districts\Hard Coat\Copy of TIF Run 11-18-10 - For Fiscal ImpactsEDA Meeting of December 20, 2010 (Item No. 7a) Subject: Establishment of the Hardcoat Tax Increment Financing District Page 34 12/14/2010Base Value Assumptions - Page 2Hardcoat TIF DistrictCity of St. Louis ParkFlame Metal RedevelopmentPropertyPercentage Percentage Percentage Percentage First YearTotal Market ValueMarketTaxProjectCompleted Completed Completed Completed Full TaxesArea/Phase New Use Sq. Ft./Units Sq. Ft./UnitsValueClass Tax Capacity2011201220132014 PayableInd35,000752,625,000 C/I Pref. 51,750100% 100%100%100%2013TOTAL2,625,00051,750 Subtotal Residential000 Subtotal Commercial/Ind.35,0002,625,00051,750 Note:1. Market values are based upon estimates from discussions with Assessor on 9-14-10.TotalFiscal LocalLocalFiscal State-wide MarketTax Disparities Tax PropertyDisparities PropertyValueTotal Taxes PerNew UseCapacityTax CapacityCapacityTaxesTaxes TaxesTaxesTaxes Sq. Ft./UnitInd51,750 18,046 33,70441,53123,338 25,8754,38295,126 2.72TOTAL 51,750 18,046 33,70441,53123,338 25,8754,38295,126Note: 1. Taxes and tax increment will vary signficantly from year to year depending upon values, rates, state law, fiscal disparities and other factors which cannot be predicted.Total Property Taxes95,126less State-wide Taxes(25,875)less Fiscal Disp. Adj.(23,338)less Market Value Taxes(4,382)less Base Value Taxes(18,413)Annual Gross TIF 23,118 WHAT IS EXCLUDED FROM TIF?TAX CALCULATIONSPROJECT INFORMATION (Project Tax Capacity)Prepared by Ehlers & Associates, Inc. - Estimates OnlyN:\Minnsota\St. Louis Park\Housing - Economic - Redevelopment\TIF\TIF Districts\Hard Coat\Copy of TIF Run 11-18-10 - For Fiscal ImpactsEDA Meeting of December 20, 2010 (Item No. 7a) Subject: Establishment of the Hardcoat Tax Increment Financing District Page 35 12/14/2010Tax Increment Cashflow - Page 3Hardcoat TIF DistrictCity of St. Louis ParkFlame Metal RedevelopmentTAX INCREMENT CASH FLOWProject Original Fiscal CapturedLocalAnnual Semi-Annual StateAdmin. Semi-Annual Semi-Annual PERIOD% ofTaxTax Disparities TaxTax Gross Tax Gross TaxAuditoratNet Tax Present ENDING Tax PaymentOTC CapacityCapacityIncremental CapacityRate Increment Increment 0.36%10% IncrementValueYrs.YearDate- - - - 08/01/11- - - - 02/01/12- - - - 08/01/12- - - - 02/01/13100% 51,750 (22,944) (10,045) 18,761 123% 23,118 11,559 (42) (1,152) 10,366 10,110 0.5 2013 08/01/13100% 51,750 (22,944) (10,045) 18,761 123% 23,118 11,559 (42) (1,152) 10,366 20,170 1 2013 02/01/14100% 54,338 (22,944) (10,045) 21,349 123% 26,306 13,153 (47) (1,311) 11,795 31,561 1.5 2014 08/01/14100% 54,338 (22,944) (10,045) 21,349 123% 26,306 13,153 (47) (1,311) 11,795 42,895 2 2014 02/01/15100% 57,054 (22,944) (10,045) 24,066 123% 29,654 14,827 (53) (1,477) 13,296 55,607 2.5 2015 08/01/15100% 57,054 (22,944) (10,045) 24,066 123% 29,654 14,827 (53) (1,477) 13,296 68,257 3 2015 02/01/16100% 59,907 (22,944) (10,045) 26,918 123% 33,169 16,585 (60) (1,652) 14,872 82,335 3.5 2016 08/01/16100% 59,907 (22,944) (10,045) 26,918 123% 33,169 16,585 (60) (1,652) 14,872 96,344 4 2016 02/01/17100% 62,902 (22,944) (10,547) 29,411 123% 36,241 18,121 (65) (1,806) 16,250 111,573 4.5 2017 08/01/17100% 62,902 (22,944) (10,547) 29,411 123% 36,241 18,121 (65) (1,806) 16,250 126,727 5 2017 02/01/18100% 66,048 (22,944) (11,074) 32,029 123% 39,467 19,733 (71) (1,966) 17,696 143,148 5.5 2018 08/01/18100% 66,048 (22,944) (11,074) 32,029 123% 39,467 19,733 (71) (1,966) 17,696 159,487 6 2018 02/01/19100% 69,350 (22,944) (11,628) 34,778 123% 42,854 21,427 (77) (2,135) 19,215 177,139 6.5 2019 08/01/19100% 69,350 (22,944) (11,628) 34,778 123% 42,854 21,427 (77) (2,135) 19,215 194,704 7 2019 02/01/20100% 72,817 (22,944) (12,210) 37,664 123% 46,410 23,205 (84) (2,312) 20,809 213,632 7.5 2020 08/01/20100% 72,817 (22,944) (12,210) 37,664 123% 46,410 23,205 (84) (2,312) 20,809 232,466 82020 02/01/21100% 76,458 (22,944) (12,820) 40,694 123% 50,144 25,072 (90) (2,498) 22,484 252,714 8.5 2021 08/01/21100% 76,458 (22,944) (12,820) 40,694 123% 50,144 25,072 (90) (2,498) 22,484 272,861 9 2021 02/01/22 Total327,364 (1,179) (32,619) 293,567 Present Value From 02/01/2011 Present Value Rate 1.00%304,275 (1,095) (30,318) 272,861 Note:1. If increment is received in 2012, the District will be one year shorterPrepared by Ehlers & Associates, Inc. - Estimates OnlyN:\Minnsota\St. Louis Park\Housing - Economic - Redevelopment\TIF\TIF Districts\Hard Coat\Copy of TIF Run 11-18-10 - For Fiscal ImpactsEDA Meeting of December 20, 2010 (Item No. 7a) Subject: Establishment of the Hardcoat Tax Increment Financing District Page 36 Appendix E-1 Appendix E Minnesota Business Assistance Form (Minnesota Department of Employment and Economic Development) A Minnesota Business Assistance Form (MBAF) should be used to report and/or update each calendar year's activity by April 1 of the following year. Please see the Minnesota Department of Employment and Economic Development (DEED) website at http://www.deed.state.mn.us/Community/subsidies/MBAFForm.htm for information and forms. EDA Meeting of December 20, 2010 (Item No. 7a) Subject: Establishment of the Hardcoat Tax Increment Financing District Page 37 Appendix F-1 Appendix F Findings Including But/For Qualifications The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan for Hardcoat Tax Increment Financing District as required pursuant to M.S., Section 469.175, Subd. 3 are as follows: 1. Finding that the Hardcoat Tax Increment Financing District is an economic development district as defined in M.S., Section 469.174, Subd. 12. The District is a contiguous geographic area within the City's Redevelopment Project No. 1, delineated in the TIF Plan, for the purpose of financing economic development in the City through the use of tax increment. The District is in the public interest because it will discourage commerce, industry, or manufacturing from moving their operations to another state or municipality; it will increase employment in the state; and it will preserve and enhance the tax base of the state. The District will accomplish these objectives by providing financial assistance to Hardcoat Inc., a manufacturer of surface coatings for high- tech industrial applications, for the purpose of acquiring and renovating an existing 33,600 sq. ft. building, along with an approximately 1,500 sq. ft. addition, in order to improve and expand its existing business. Construction of the addition will facilitate use of a portion of the facility by other complementary businesses in the near term, and will allow room for expansion by Hardcoat in the longer term. In addition, pursuant to M.S., Section 469.176, Subd. 4c(d), the City finds that the private development contemplated by and to be assisted pursuant to the TIF Plan will create or retain jobs in the state, including construction jobs, that construction of the development will occur before July 1, 2011, and that the construction of the development would not have commenced before July 1, 2011, without the tax increment financing assistance to be provided pursuant to the TIF Plan. 2.Finding that the proposed development, in the opinion of the City Council, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of Hardcoat Tax Increment Financing District permitted by the TIF Plan. The proposed development, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future: This finding is supported by the fact that the building slated for development proposed in this plan is currently a code-deficient, vacant manufacturing facility that meets the City's objectives for economic development. The proposed Developer of the property is a small but established company with potential for growth, but limited financial means in the near term to achieve that growth without public assistance. In addition, the cost of land acquisition, as well as the improvements required to bring the facility up to code and make it attractive to other businesses, makes development of the facility infeasible without City assistance. Finally, the City's fiscal consultant has analyzed a Developer pro forma and has concluded that the Developer's need for assistance is reasonable and justifiable, and that the Developer would not be able to commence its renovation activities without tax increment assistance. The increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the TIF District permitted by the TIF Plan: While the property could be sold to another developer for EDA Meeting of December 20, 2010 (Item No. 7a) Subject: Establishment of the Hardcoat Tax Increment Financing District Page 38 Appendix F-2 some other use, these scenarios are not feasible in the market due to various constraints. First, the location is not conducive to retail development due to its location within the city (these parcels and surrounding are zoned/designated for industrial use). Second, although the property could be redeveloped for office use, the office market in the City is extremely soft and it is unlikely that office developers would choose to develop this entire site for office use, given the availability of plentiful existing office space in the surrounding area. Finally, due to the condition of the property, any developer looking to renovate the site for industrial use would need assistance to address the high costs associated with required code improvements to occupy the property. Therefore, the City concludes as follows: a. The City's estimate of the amount by which the market value of the entire District will increase without the use of tax increment financing is $0. b. If the proposed development occurs, the total increase in market value will be $1,440,300 (see Appendix D and the table below) c. The present value of tax increments from the District for the maximum duration of the district permitted by the TIF Plan is estimated to be $304,275 (see Appendix D and the table below). d. Even if some development other than the proposed development were to occur, the Council finds that no alternative would occur that would produce a market value increase greater than $1,136,025 (the amount in clause b less the amount in clause c) without tax increment assistance. But-For Analysis Current Market Value 1,184,700 New Market Value - Estimate 2,625,000 Difference 1,440,300 Present Value of Tax Increment 304,275 Difference 1,136,025 Value Likely to Occur Without TIF is Less Than: 1,136,025 3.Finding that the TIF Plan for Hardcoat Tax Increment Financing District conforms to the general plan for the development or redevelopment of the municipality as a whole. The Planning Commission reviewed the TIF Plan and found that the TIF Plan conforms to the general development plan of the City. 4.Finding that the Tax Increment Financing Plan for Hardcoat Tax Increment Financing District will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development of Redevelopment Project No. 1 by private enterprise. The project to be assisted by the District will transform an existing code-deficient vacant building into a high-quality manufacturing facility in the City, resulting in increased employment in the City and State through the retention of existing jobs and the addition of between six and 25 new employees as the business expands, along with additional jobs related to construction of the facility. EDA Meeting of December 20, 2010 (Item No. 7a) Subject: Establishment of the Hardcoat Tax Increment Financing District Page 39 Meeting Date: December 20, 2010 Agenda Item #: 7b Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Public Hearing Study Session Discussion Item Written Report Other: TITLE: Contract for Private Development between the EDA and M & L Properties, LLC (Hardcoat Inc). RECOMMENDED ACTION: Motion to adopt the resolution approving the Contract for Private Development between the EDA and M & L Properties, LLC (Hardcoat Inc). Motion to approve the resolution authorizing an Interfund Loan for advance of certain costs in connection with the Hardcoat TIF District. POLICY CONSIDERATION: Does the EDA wish to approve the proposed Contract for Private Development between the EDA and M & L Properties, LLC to facilitate Hardcoat’s purchase and renovation of the former Flame Metals property (7301 - 7317 West Lake St.)? BACKGROUND: The EDA reviewed Hardcoat Inc’s request for Construction Assistance Program (CAP) assistance at the November 8th Study Session. Staff provided a preview of the business terms that served as the basis for the proposed Development Contract with Hardcoat Inc in a report for the December 13th Study Session. Hardcoat Inc. (located at 7300 W. Lake Street) wishes to acquire 7301 - 7317 W. Lake Street (the former Flame Metals property) located across the street to the south.. The company plans to renovate the building and site, and relocate its operations there. The industrial building is approximately 33,600 square feet and was constructed in 1963. It was in very poor condition with numerous building code deficiencies. Following Flame Metals’ departure in 2009, the building’s interior has been emptied, thoroughly cleaned, repainted, and many (but not all) code deficiencies have been addressed. Nearly all the building’s operating systems have been removed. Hardcoat’s plans include a complete renovation of both the interior and exterior of the building as well as the construction of a small addition. Renovation will include a new roof, new exterior facelift, new windows and dock doors, new offices and interior spaces, new electrical and plumbing systems, new energy efficient HVAC equipment, new parking lot and landscaping, rain gardens and site amenities, as well as the construction of a 1,500 SF addition for office/conference space on the north side of the building. Once the renovation is complete, Hardcoat will initially occupy approximately 25,000 square feet of the building. The balance will be leased to a complementary business and provide Hardcoat with future expansion capacity. In order to pursue the above project Hardcoat applied for up to $420,000 in financial assistance through the Construction Assistance Program (CAP). Hardcoat’s application was reviewed at the November 8th Study Session where it was favorably received. EDA Meeting of December 20, 2010 (Item No. 7b) Page 2 Subject: Development Contract with M & L Properties (Hardcoat Inc.) Hardcoat’s project qualifies as an Economic Development TIF District. Establishing a TIF district in conjunction with the project will allow the EDA to reimburse a portion of the CAP funding provided to Hardcoat. A public hearing date for the establishment of the TIF district is also scheduled for December 20, 2010. Request for Financial Assistance Hardcoat has negotiated a Purchase Agreement with A & D Holdings LLC, (the current owner of the Development property) for $1,010,000. The purchase price is $174,700 less than the property’s current assessed value. The total cost to renovate the building and grounds is estimated at $1.4 million. Of this amount, Hardcoat has applied for up to $420,000 in Construction Assistance: which equals approximately 33% of total renovation costs. This amount could be reduced based upon more refinements to Hardcoat’s cost estimates and whatever cost savings the company receives through Xcel Energy’s Energy Design Assistance program to which it recently applied. When one adds the cost of the property ($1,010,000), the hard costs related to the building renovation ($1,400,000), the cost of new equipment ($500,000), as well as soft costs and permits estimated at ($136,500), the entire project will total nearly $3.05 million. Proposed Funding Sources The source of the CAP funds is available tax increment revenue generated by five of the City’s TIF districts. These funds will be disbursed from the Development Fund. Given the size of Hardcoat’s CAP request, an Economic Development TIF District is proposed to reimburse a portion of the CAP funding provided to Hardcoat. It is estimated that the TIF district could generate approximately $207,000 over its 9-year term. Such an arrangement requires approval of the proposed Interfund Loan Resolution. Structure of the CAP Funds CAP funds will be provided to Hardcoat upon prove-up that the property was purchased and the proposed construction costs were incurred. In order to remain in compliance with the TIF Act, the CAP funds will technically be applied to Hardcoat’s property acquisition costs as these are considered “qualified costs” under the rules for Economic Development TIF Districts. The funding will be structured as a forgivable loan through a mortgage. Provided the building is held and properly maintained by Hardcoat for 5 years after project completion, the entirety of the loan could be forgiven. If the property is sold within 5 years of project completion, the loan must be repaid along with 6% accrued interest from the date funding was provided. Project Schedule Hardcoat Inc. expects to close on the property within the next couple months. It plans to commence interior building renovations immediately thereafter in the first quarter of 2011. Exterior renovations and construction will begin in the spring and should be completed prior to summer’s end. Current/Proposed Market Value The subject property’s 2010 assessed value is $1,184,700. The 2010 taxes payable for this property total $37,542. Upon renovation the property would have an estimated market value of approximately $2,625,000; an increase of $1,440,300. Total taxes payable would be approximately $95,125; an increase of $57,583. EDA Meeting of December 20, 2010 (Item No. 7b) Page 3 Subject: Development Contract with M & L Properties (Hardcoat Inc.) Job Creation Hardcoat currently has 14 employees and all will be retained in the relocation to the new building. As a result of its expanded operations and the new business it anticipates generating, Hardcoat believes an additional 6 to 25 employees could potentially be hired in the next 5 years. Additional labor would be involved with the building renovation and construction of the small addition. Other jobs would also be created when a tenant leases the balance of the building. Development Contract The following is a summary of the Development Contract between the EDA and M & L Properties, LLC (otherwise known as Hardcoat Inc or “Developer”), for the purchase and renovation of 7301 - 7317 West Lake St.. 1. All parties agree that the Developer will be solely responsible for the acquisition of the subject two parcels that constitute the Development Property and that the City/EDA has no obligation to acquire the Development Property. 2. The Developer acknowledges that the EDA makes no representations or warranties as to the condition of the soils on the Development Property or the fitness of the Development Property for construction of the Minimum Improvements or any other purpose for which the Developer may make use of such property, and that the assistance provided to the Developer under the Contract neither implies any responsibility by the EDA or the City for any contamination of the Development Property nor imposes any obligation on such parties to participate in any cleanup of the Development Property. 3. Developer further agrees that it will indemnify, defend, and hold harmless the EDA, the City, and their governing body members, officers, and employees, from any claims or actions arising out of the presence, if any, of hazardous wastes or pollutants existing on or in the Development Property (including without limitation any asbestos in any existing building). 4. The EDA has no obligation to pay relocation benefits with regard to the proposed project. 5. The EDA has determined that, in order to make the proposed project financially feasible and to expedite such development and stimulate the retention and creation of jobs, including construction jobs pursuant to the Job Creation Act, it is necessary to provide the Developer with a CAP Loan for a portion of the acquisition costs of the Development Property (the “Acquisition Costs”), subject to the following terms: a) Terms. To assist the Developer with payment of the Acquisition Costs incurred by the Developer, the EDA will provide the Developer with the CAP Loan in the principal amount of the lesser of $420,000 or 33% of the Construction Costs. The EDA shall loan 33% of the CAP Loan funds to Developer within 30 days of Developer having: (i) submitted and obtained Authority approval of financing in accordance and (ii) delivered to the EDA written evidence satisfactory to the EDA that Developer has incurred and paid the Construction Costs for which reimbursement is sought, which evidence must include copies of the paid invoices or other comparable evidence for the Construction Costs. Such invoices or other evidence shall be EDA Meeting of December 20, 2010 (Item No. 7b) Page 4 Subject: Development Contract with M & L Properties (Hardcoat Inc.) submitted to the EDA for payment on a monthly basis following commencement of construction of the Minimum Improvements. Developer may submit invoices on a more frequent basis if the invoice or invoices submitted total more than $50,000. All invoices must be submitted no later than December 1, 2011. b) Construction of the Minimum Improvements must commence prior to July 1, 2011, and no extensions of the commencement date will be considered. If the construction has not commenced by such date, the EDA has no further obligations under this agreement. c) The Developer understands and acknowledges that the CAP Loan must be fully repaid, along with accrued interest at the rate of 6.0%, if the Developer fails to maintain the Minimum Improvements in good repair and condition, if a Transfer of the Development Property occurs at any time before the Termination Date, or if the EDA exercises its right to terminate this Agreement as a remedy for any Event of Default. Acquisition Costs exceeding the principal amount of the CAP Loan are the sole responsibility of Developer. 6. The EDA has determined that the total assistance loaned to the Developer is the lesser of $420,000 or 33% of the Construction Costs. This amount represents the total to be invested by the EDA. a) The EDA will treat the above assistance as an interfund loan. The total principal amount of the Interfund Loan shall be the lesser of $420,000 or 33% of the Construction Costs. The EDA will pledge Available Tax Increment from the TIF District to payment of the Interfund Loan. The Developer has no rights or interest in any Tax Increment. 7. The parties agree and understand that the financial assistance described in the Contract does not constitute a business subsidy within the meaning of the Business Subsidy Act. The Developer releases and waives any claim against the EDA arising from application of the Business Subsidy Act to the Contract, including without limitation any claim that the EDA failed to comply with the Business Subsidy Act with respect to this Agreement. 8. The parties agree and understand that the Contract is subject to the job retainment and creation objectives of the Job Creation Act. Accordingly, through the use of the CAP loan and other financing, the Developer will create and/or retain jobs in the construction industry and, once the Minimum Improvements are completed, will retain his current 14 full-time equivalent employees in the City of St. Louis Park and, as Developer’s business expands, create new job opportunities, presently projected to be at least six new full-time equivalent jobs (annualized 2,080 hours per job). 9. The Developer must submit to the City a written report regarding job and wage goals and results by no later than February 1 of each year, commencing February 1, 2012 and continuing until the date the job goals are met; or (ii) if the goals are not met, the date the CAP Loan is repaid. 10. The Developer agrees that it will construct or cause construction of the Minimum Improvements on the Development Property in accordance with the approved EDA Meeting of December 20, 2010 (Item No. 7b) Page 5 Subject: Development Contract with M & L Properties (Hardcoat Inc.) Construction Plans and that it will, during any period while the Developer retains ownership of any portion of the Minimum Improvements, operate and maintain, preserve and keep the Minimum Improvements in good repair and condition. 11. Before commencing construction of the Minimum Improvements, the Developer shall submit to the EDA Construction Plans for the Minimum Improvements acceptable to the EDA. The Construction Plans shall provide for the construction of the Minimum Improvements and shall be in conformity with the Contract, the Redevelopment Plan and all applicable State and local laws and regulations. 12. If the Developer desires to make any material change (meaning changes that increase or decrease construction costs by $100,000 or more) in the Construction Plans after their approval by the EDA, the Developer shall submit the proposed change to the EDA for its approval. The EDA’s approval of any such change in the Construction Plans will not be unreasonably withheld. 13. The Developer shall commence construction of the Minimum Improvements by July 1, 2011. The Developer shall complete the construction of the Minimum Improvements by December 1, 2011. All work with respect to the Minimum Improvements to be constructed by the Developer shall be in conformity with the Construction Plans as submitted by the Developer and approved by the EDA. 14. Within 30 days after completion of the Minimum Improvements the EDA Representative shall deliver to the Developer a Certificate of Completion. a) If the EDA Representative shall refuse or fail to provide the Certificate, the EDA Representative shall, within thirty (30) days after written request by the Developer, provide the Developer with a written statement, indicating in what respects the Developer has failed to complete the Minimum Improvements in accordance with the provisions of the Agreement, or is otherwise in default, and what measures or acts it will be necessary, in the opinion of the EDA, for the Developer to take or perform in order for the EDA to issue the Certificate of Completion. Issuance of the Certificate of Completion shall not be unreasonably withheld. 15. The Developer shall, with the EDA execute an Assessment Agreement specifying an assessor’s minimum Market Value for the Development Property and Minimum Improvements constructed thereon. The amount of the minimum Market Value shall be $2,425,000 as of January 2, 2012, and each January 2 thereafter. 16. The EDA agrees to subordinate its rights under the Contract to the Holder of any Mortgage securing construction or permanent financing, in accordance with the terms of a mutually- approved subordination agreement. 17. Developer agrees not to transfer the Redevelopment Agreement or the Redevelopment Property (except to an affiliate) prior to receiving a Certificate of Completion without the prior written consent of the EDA, except for construction mortgage financing and/or permanent financing. The EDA's consent shall not be unreasonably withheld, conditioned or delayed. The EDA agrees to provide its consent or refusal to consent to Developer in writing within 10 days after a request for such consent from Developer. EDA Meeting of December 20, 2010 (Item No. 7b) Page 6 Subject: Development Contract with M & L Properties (Hardcoat Inc.) 18. Developer agrees that the EDA and the City (the “Indemnified Parties”) shall not be liable for and agrees to indemnify and hold harmless the Indemnified Parties against any loss or damage to property or any injury to or death of any person occurring at or about or resulting from any defect in the Development Property or the Minimum Improvements. Developer agrees to protect and defend the Indemnified Parties and further agrees to hold the Parties harmless from any claim, demand, suit, action, or other proceeding whatsoever by the acquisition, construction, installation, ownership, maintenance, and operation of the Development Property. 19. Developer agrees until the Maturity Date that it shall not discriminate upon the basis of race, color, creed, sex or national origin in the sale, lease, or rental or in the use or occupancy of the Development Property or any improvements erected or to be erected thereon. 20. The Developer agrees that no portion of the Redevelopment Property will be used for a sexually-oriented business, a pawnshop, a check-cashing business, payday loan agency, a tattoo business; or a gun business. Business Subsidy The assistance provided to the Developer under the Contract does not constitute a “business subsidy” under the Minnesota Business Subsidy Act because the purchase price of the Development Property equals at least 70% of the County assessor’s finalized market value of the Development Property for the 2010 assessment year. FINANCIAL OR BUDGET CONSIDERATION: To stimulate private construction activity within the city it is proposed that the EDA consider providing M & L Properties (Hardcoat Inc) up to $420,000 through the Construction Assistance Program to purchase and renovate the former Flame Metals property. Such funds would be provided on a reimbursement basis and as a forgivable loan from available tax increment generated by the City’s various TIF districts. It is also proposed that the EDA create an Economic Development TIF District in conjunction with this project so as to allow the EDA to reimburse its self approximately $207,000 of the above assistance over the 9-year life of the district. VISION CONSIDERATION: Hardcoat’s proposed project is consistent with elements of Vision St. Louis Park as it facilitates and promotes environmental stewardship and green development. Attachments: Resolution of Approval Resolution Interfund Loan Development Contract between the EDA and M & L Properties, LLC Prepared by: Greg Hunt, Economic Development Coordinator Reviewed by: Kevin Locke, Community Development Director Approved by: Tom Harmening, EDA Executive Director and City Manager EDA Meeting of December 20, 2010 (Item No. 7b) Page 7 Subject: Development Contract with M & L Properties (Hardcoat Inc.) ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY EDA RESOLUTION NO. 10-____ RESOLUTION APPROVING A CONTRACT FO PRIVATE DEVELOPMENT CONTAINING A CONSTRUCTION ASSISTANCE PROGRAM LOAN TO M & L PROPERTIES, LLC, AND PROVIDING THE FORM, TERMS, COVENANTS AND DIRECTIONS FOR SUCH LOAN BE IT RESOLVED BY the Board of Commissioners (“Board”) of the St. Louis Park Economic Development Authority, St. Louis Park, Minnesota (the “Authority”) as follows: Section 1. Authorization; Award of Loan. 1.01. Authorization. The Authority and the City of St. Louis Park have heretofore approved the establishment of the Victoria Ponds, Park Center Housing, CSM, Mill City, Edgewood, Wolfe Lake, Aquila Commons, and Elmwood Tax Increment Financing District (the “TIF Districts”) within Redevelopment Project No. 1 (“Project”), have adopted a spending plan (the “Spending Plan”) pursuant to Minnesota Laws 2010, Chapter 216, Section 32 (the “Job Creation Act”) for the purpose of financing certain improvements within the Project using tax increments from the TIF Districts to stimulate job creation, and have established a Construction Assistance Program (“CAP”) to provide further guidelines for use of the tax increments from the TIF Districts under the Spending Plan. Pursuant to the Job Creation Act, the Authority is authorized to provide loans, interest rate subsidies, or assistance in any form to private development consisting of the construction or substantial rehabilitation of buildings and ancillary facilities to create or retain jobs. Such assistance is payable from all or any portion of revenues derived from the TIF Districts and authorized for such use under the Spending Plan. The Authority hereby finds and determines that it is in the best interests of the Authority to provide a CAP Loan to M & L Properties, LLC (the “Developer”) for the purpose of financing certain land acquisition costs (the “Acquisition Costs”) in connection with the purchase, renovation and expansion of a manufacturing facility by the Developer (the “Minimum Improvements”). 1.02. Approval of Agreement; Terms of the Loan. (a) The Authority hereby authorizes the President and Executive Director to execute the Contract for Private Development between the Authority and the Developer (the “Agreement”) in substantially the form presented to the Board, subject to modifications that do not alter the substance of the transaction and that are approved by the President and Executive Director, provided that execution of the Agreement by those officials shall be conclusive evidence of their approval. All capitalized terms in this resolution have the meaning provided in the Agreement unless the context requires otherwise. (b) Pursuant to the Agreement, the Authority will loan to the Developer the CAP Loan in the principal amount of the lesser of $420,000 or 33% of the actual costs of construction and renovation of the Minimum Improvements, evidenced by a promissory note (the “Note”) and secured by a mortgage (the “Mortgage”) to be executed and delivered to the Authority by the Developer in substantially the forms attached hereto as Exhibit A and Exhibit B. Proceeds of the CAP Loan shall be disbursed in accordance with Section 3.4 of the Agreement. The Note shall bear interest at the rate of 6.0% per annum, subject to the provisions of Section 2 hereof. EDA Meeting of December 20, 2010 (Item No. 7b) Page 8 Subject: Development Contract with M & L Properties (Hardcoat Inc.) Section 2. Repayment of Loan. The entire unpaid balance of principal and interest shall be due and payable upon the earlier of the following: (i) thirty (30) days after written notification by the Authority to the Developer of the occurrence of an Event of Default as defined in the Agreement or Mortgage; or (ii) ten (10) days after the Developer makes or allows to be made any total or partial transfer, sale, assignment, conveyance, lease, or transfer in any other mode, of the Development Property, if such transfer occurs within five (5) years after the issuance of a Certificate of Completion for the Minimum Improvements as provided in Section 4.4 of the Agreement. If the Developer does not sell the Development Property within five (5) years of the issuance of the Certificate of Completion for the Minimum Improvements, no payments of interest shall be payable on this Note and the principal balance shall be forgiven. Section 3. Effective Date. This resolution shall be effective upon approval. Reviewed for Administration: Adopted by the Economic Development Authority December 20, 2010 Executive Director President Attest Secretary EDA Meeting of December 20, 2010 (Item No. 7b) Page 9 Subject: Development Contract with M & L Properties (Hardcoat Inc.) ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY EDA RESOLUTION NO. 10-____ AUTHORIZING INTERFUND LOAN FOR ADVANCE OF CERTAIN COSTS IN CONNECTION WITH THE HARDCOAT TAX INCREMENT FINANCING DISTRICT BE IT RESOLVED BY the Board Of Commissioners of the St. Louis Park Economic Development Authority (the “Authority”) as follows: Section 1. Background. 1.01. The Authority has established the Hardcoat Tax Increment Financing District (the “TIF District”) within Redevelopment Project No. 1 (the "Redevelopment Project") pursuant to Minnesota Statutes, Sections 469.174 to 469.1799 (the “TIF Act”) and Sections 469.001 to 469.047 (the “HRA Act”), as amended. 1.02. The Authority may incur certain costs related to the TIF District, which costs may be financed on a temporary basis from available Authority or City funds. 1.03. Under Section 469.178, Subdivision 7 of the TIF Act, the Authority is authorized to advance or loan money from any fund from which such advances may be legally made in order to finance expenditures that are eligible to be paid with tax increments under the TIF Act. 1.04. The Authority has previously established a Spending Plan (the “Spending Plan”) pursuant to Laws 2010, Chapter 216, Section 32 (the “Job Creation Act”), pursuant to which the Authority may provide funds from certain designated preexisting tax increment financing districts including the Victoria Ponds, Park Center Housing, CSM, Mill City, and Elmwood tax increment financing districts (the “Prior TIF Districts”) to assist private developers and increase the creation of jobs, and has approved its Construction Assistance Program (“CAP”) as a framework for such private assistance. 1.05. The Authority has entered into a Contract for Private Development dated as of December 20, 2010 (the “Agreement”) with M & L Properties, LLC (the “Developer”), under which the Authority will (among other things) provide a forgivable CAP loan to the Developer to assist with a portion of the costs of acquisition of the Development Property, in the principal amount of the lesser of $420,000 or 33% of the Construction Costs incurred (as such terms are defined in the Agreement). 1.06. By structuring the loan to the Developer as a forgivable loan, the Authority may forgo repayment of the loan. Such loan forgiveness represents an advance of Authority funds in the maximum amount of $420,000. 1.07. The Authority has also determined that it will advance the actual costs of consultants and attorneys retained by the Authority in connection with creation and administration of the TIF District and the negotiation and preparation of the Agreement and other incidental agreements and documents related to the development contemplated hereunder (the “Administrative Costs”), in an amount not to exceed $80,000. EDA Meeting of December 20, 2010 (Item No. 7b) Page 10 Subject: Development Contract with M & L Properties (Hardcoat Inc.) 1.07. The Authority intends to designate such advances as an interfund loan in accordance with the terms of this resolution and the TIF Act. Section 2. Repayment of Interfund Loan. 2.01. The Authority hereby authorizes the advance of up to $500,000 from the Spending Plan funds from the Prior TIF Districts to pay the CAP Loan advances and Administrative Costs as described in the Agreement, and will reimburse itself for such advances and Administrative Costs together with interest at the rate of 4.0% per annum (the “Interfund Loan”). Interest shall accrue on the principal amount of each advance from the date of such advance. The interest rate is no more than the greatest of the rate specified under Minnesota Statutes, Section 270.75 and Section 549.09, both in effect for calendar year 2010. The interest rate will not fluctuate. 2.02. Principal and interest ("Payments") on the Interfund Loan shall be paid semi- annually on each August 1 and February 1 (each a “Payment Date”), commencing on the first Payment Date on which the Authority has Available Tax Increment (defined below), or on any other dates determined by the City Manager, through the date of last receipt of tax increment from the TIF District. 2.03. Payments on the Interfund Loan will be made solely from Available Tax Increment, defined as 100% of the tax increment from the TIF District received by the Authority from Hennepin County in the six-month period before any Payment Date. Payments shall be applied first to accrued interest, and then to unpaid principal. Payments on this Interfund Loan may be subordinated to any outstanding or future bonds, notes or contracts secured in whole or in part with Available Tax Increment, and are on parity with any other outstanding or future interfund loans secured in whole or in part with Available Tax Increment. 2.04. The principal sum and all accrued interest payable under this resolution is pre- payable in whole or in part at any time by the Authority without premium or penalty. 2.05. This resolution is evidence of an internal borrowing by the Authority in accordance with Section 469.178, subdivision 7 of the TIF Act, and is a limited obligation payable solely from Available Tax Increment pledged to the payment hereof under this resolution. The Interfund Loan shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including, without limitation, the Authority and the City. Neither the State of Minnesota, nor any political subdivision thereof shall be obligated to pay the principal of or interest on the Interfund Loan or other costs incident hereto except out of Available Tax Increment. The Authority shall have no obligation to pay any principal amount of the Interfund Loan or accrued interest thereon, which may remain unpaid after the final Payment Date. 2.06. The Authority may at any time make a determination to forgive the outstanding principal amount and accrued interest on the Interfund Loan to the extent permissible under law. 2.07. The Authority may from time to time amend the terms of this Resolution to the extent permitted by law, including without limitation amendment to the payment schedule. EDA Meeting of December 20, 2010 (Item No. 7b) Page 11 Subject: Development Contract with M & L Properties (Hardcoat Inc.) Section 3. Effective Date. This resolution is effective upon execution in full of the Agreement. Reviewed for Administration: Adopted by the Economic Development Authority December 20, 2010 Executive Director President Attest Secretary 378184v2 MNI SA285-95 Second Draft December 15, 2010 CONTRACT FOR PRIVATE DEVELOPMENT By and Between ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY and M & L PROPERTIES, LLC Dated as of: _____________, 2010 This document was drafted by: KENNEDY & GRAVEN, Chartered (MNI) 470 U.S. Bank Plaza Minneapolis, Minnesota 55402 (612) 337-9300 http://www.kennedy-graven.com EDA Meeting of December 20, 2010 (Item No. 7b) Subject: Development Contract with M & L Properties (Hardcoat Inc.)Page 12 378184v2 MNI SA285-95 i TABLE OF CONTENTS Page PREAMBLE ...................................................................................................................................1 ARTICLE I Definitions Section 1.1. Definitions................................................................................................................2 ARTICLE II Representations and Warranties Section 2.1. Representations by the Authority.............................................................................6 Section 2.2. Representations and Warranties by the Developer..................................................6 ARTICLE III Property Acquisition; Public Development Costs Section 3.1. Status of Development Property..............................................................................8 Section 3.2. Environmental Conditions.......................................................................................8 Section 3.3 Relocation................................................................................................................8 Section 3.4 CAP Loan.................................................................................................................9 Section 3.5. Interfund Loan .......................................................................................................10 Section 3.6. Business Subsidy ...................................................................................................11 ARTICLE IV Construction of Minimum Improvements Section 4.1. Construction of Improvements ..............................................................................10 Section 4.2. Construction Plans.................................................................................................10 Section 4.3. Commencement and Completion of Construction.................................................12 Section 4.4. Certificate of Completion ......................................................................................12 Section 4.5. Records ..................................................................................................................14 Section 4.6. Vacation of Trail Property.....................................................................................14 ARTICLE V Insurance Section 5.1. Insurance................................................................................................................16 Section 5.2. Subordination.........................................................................................................17 ARTICLE VI Tax Increment; Taxes Section 6.1. Right to Collect Delinquent Taxes.........................................................................18 Section 6.2. Review of Taxes ....................................................................................................18 Section 6.3. Assessment Agreement..........................................................................................18 EDA Meeting of December 20, 2010 (Item No. 7b) Subject: Development Contract with M & L Properties (Hardcoat Inc.)Page 13 378184v2 MNI SA285-95 ii ARTICLE VII Other Financing Section 7.1. Generally................................................................................................................19 Section 7.2. Authority’s Option to Cure Default on Mortgage..................................................19 Section 7.3. Modification; Subordination..................................................................................19 ARTICLE VIII Prohibitions Against Assignment and Transfer; Indemnification Section 8.1. Representation as to Development.........................................................................20 Section 8.2. Prohibition Against Developer’s Transfer of Property and Assignment of Agreement.....................................................................................20 Section 8.3. Release and Indemnification Covenants................................................................21 ARTICLE IX Events of Default Section 9.1. Events of Default Defined .....................................................................................23 Section 9.2. Remedies on Default..............................................................................................23 Section 9.3. No Remedy Exclusive............................................................................................24 Section 9.4. No Additional Waiver Implied by One Waiver ....................................................24 Section 9.5. Attorney Fees.........................................................................................................24 ARTICLE X Additional Provisions Section 10.1. Conflict of Interests; Representatives Not Individually Liable.............................25 Section 10.2. Equal Employment Opportunity............................................................................25 Section 10.3. Restrictions on Use................................................................................................25 Section 10.4. Provisions Not Merged With Deed........................................................................25 Section 10.5. Titles of Articles and Sections...............................................................................25 Section 10.6. Notices and Demands ............................................................................................25 Section 10.7. Counterparts...........................................................................................................26 Section 10.8. Recording...............................................................................................................26 Section 10.9. Amendment............................................................................................................26 Section 10.10. Authority Approvals..............................................................................................26 TESTIMONIUM ...........................................................................................................................27 SIGNATURES ..............................................................................................................................27 SCHEDULE A Development Property SCHEDULE B CAP Loan Resolution SCHEDULE C Interfund Loan Resolution SCHEDULE D Certificate of Completion SCHEDULE E Site Plan SCHEDULE F Assessment Agreement EDA Meeting of December 20, 2010 (Item No. 7b) Subject: Development Contract with M & L Properties (Hardcoat Inc.)Page 14 378184v2 MNI SA285-95 1 CONTRACT FOR PRIVATE DEVELOPMENT THIS AGREEMENT, made as of the ____ day of _________, 2009, by and between the St. Louis Park Economic Development Authority (the “Authority”), a public body corporate and politic under the laws of Minnesota, and M & L Properties, LLC (the “Developer”), a Minnesota limited liability company. WITNESSETH: WHEREAS, the Authority was created pursuant to Minnesota Statutes Sections 469.090 to 469.1081 (the “Act”) and was authorized to transact business and exercise its powers by a resolution of the City Council of the City of St. Louis Park, Minnesota (the “City”); and WHEREAS, the Authority has undertaken a program to promote the development and redevelopment of land which is underutilized within the City, and in this connection created the Redevelopment Project No. 1 (hereinafter referred to as the “Project”) in an area (hereinafter referred to as the “Project Area”) located in the City pursuant to Minnesota Statutes, Sections 469.001 to 469.047 (the “HRA Act”); and WHEREAS, pursuant to the Act, the Authority is authorized to undertake certain activities to prepare such real property for development and redevelopment by private enterprise; and WHEREAS, the Developer intends to acquire certain property (the “Development Property”) in the Project Area to redevelop on that property an existing manufacturing facility, as further described herein (the “Minimum Improvements”); and WHEREAS, the Authority has previously established the Victoria Ponds, Park Center Housing, CSM, Mill City, Edgewood, Wolfe Lake, Aquila Commons, and Elmwood Tax Increment Financing Districts (the “Prior TIF Districts”) pursuant to Minnesota Statutes, Sections 469.174 to 469.1799, as amended, made up of property in the Project Area; and WHEREAS, the City and Authority have duly established a Spending Plan (the “Spending Plan”) for the TIF Districts pursuant to Minnesota Laws 2010, Chapter 216, Section 32 (the “Job Creation Act”), which authorizes the use of tax increments from the TIF Districts to provide improvements, loans, interest rate subsidies, or assistance in any form to private development consisting of construction that will create or retain jobs, and have further implemented a Construction Assistance Program (“CAP”) which provides policy guidelines for such use of tax increments pursuant to the Spending Plan; and WHEREAS, the Authority has established the Hardcoat Tax Increment Financing District (the “TIF District”) pursuant to Minnesota Statutes, Sections 469.174 to 469.1799, as amended, made up of property in the Project Area including the Development Property; and EDA Meeting of December 20, 2010 (Item No. 7b) Subject: Development Contract with M & L Properties (Hardcoat Inc.)Page 15 378184v2 MNI SA285-95 2 WHEREAS, the Authority intends to provide assistance to the Developer pursuant to the CAP and Spending Plan, and to reimburse itself for such expenditures under the Spending Plan through tax increments generated from the TIF District pursuant to an interfund loan, as more fully described herein; and WHEREAS, the Authority believes that the development of the Development Property pursuant to and in general fulfillment of this Agreement, conforms to the Spending Plan, CAP and Job Creation Act and is in the vital and best interests of the City, will promote the health, safety, morals, and welfare of its residents, and will be in accord with the public purposes and provisions of the applicable State and local laws and requirements under which the Project has been undertaken and is being assisted. NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: EDA Meeting of December 20, 2010 (Item No. 7b) Subject: Development Contract with M & L Properties (Hardcoat Inc.)Page 16 378184v2 MNI SA285-95 3 ARTICLE I Definitions Section 1.1. Definitions. In this Agreement, unless a different meaning clearly appears from the context: “Acquisition Costs” has the meaning provided in Section 3.4(a) hereof. “Act” means Minnesota Statutes Sections 469.090 to 469.1081, as amended. “Affiliate” means with respect to any entity (a) any corporation, partnership, limited liability company or other business entity or person controlling, controlled by or under common control with the entity, and (b) any successor to such party by merger, acquisition, reorganization or similar transaction involving all or substantially all of the assets of such party (or such Affiliate). For the purpose hereof the words “controlling”, “controlled by” and “under common control with” shall mean, with respect to any corporation, partnership, limited liability company or other business entity, the ownership of fifty percent or more of the voting interests in such entity or possession, directly or indirectly, of the power to direct or cause the direction of management policies of such entity, whether through ownership of voting securities or by contract or otherwise. “Agreement” means this Agreement, as the same may be from time to time modified, amended, or supplemented. “Authority” means the St. Louis Park Economic Development Authority. “Authority Representative” means the Executive Director of the Authority, or any person designated by the Executive Director to act as the Authority Representative for the purposes of this Agreement. “Available Tax Increment” has the meaning provided in the Authorizing Resolution. “Business Day” means any day except a Saturday, Sunday, legal holiday, a day on which the City is closed for business, or a day on which banking institutions in the City are authorized by law or executive order to close. “Business Subsidy Act” means Minnesota Statutes, Sections 116J.993 to 116J.995, as amended. “CAP” means the City’s Construction Assistance Program, adopted by the City Council and Authority on July 19, 2010. EDA Meeting of December 20, 2010 (Item No. 7b) Subject: Development Contract with M & L Properties (Hardcoat Inc.)Page 17 378184v2 MNI SA285-95 4 “CAP Loan” means the loan, substantially in the form contained in the Loan Resolution, to be delivered by the Authority to the Developer in accordance with Section 3.4 hereof to reimburse the Developer for Public Development Costs. “CAP Loan Resolution” means the resolution of the Authority, substantially in the form of attached Schedule B to be adopted by the Authority to authorize the CAP Loan. “City” means the City of St. Louis Park, Minnesota. “Certificate of Completion” means the certification provided to the Developer pursuant to Section 4.4 of this Agreement. “Construction Costs” has the meaning provided in Section 3.4(b) hereof. “Construction Plans” means the plans, specifications, drawings and related documents on the construction work to be performed by the Developer on the Development Property which (a) shall be as detailed as the plans, specifications, drawings and related documents which are submitted to the appropriate building officials of the City, and (b) shall include at least the following: (1) site plan; (2) floor plan; (3) cross sections of each (length and width); (4) elevations (all sides); (5) landscape plan; and (6) such other plans or supplements to the foregoing plans as the Authority may reasonably request to allow it to ascertain the nature and quality of the proposed construction work. “County” means the County of Hennepin, Minnesota. “Developer” means M & L Properties, LLC, a Minnesota limited liability company, or its permitted successors and assigns. “Development Property” means the real property described in Schedule A of this Agreement, provided that upon filing of a final plat of such property, the platted legal description will control. “Event of Default” means an action by the Developer listed in Article IX of this Agreement. “Holder” means the owner of a Mortgage. “HRA Act” means Minnesota Statutes, Sections 469.001 to 469.047, as amended. “Interfund Loan” means the interfund loan described in Section 3._ hereof. “Interfund Loan Resolution” means the resolution of the Authority, substantially in the form of attached Schedule C to be adopted by the Authority to authorize the Interfund Loan. “Job Creation Act” means Minnesota Laws 2010, Chapter 216, Section 32. EDA Meeting of December 20, 2010 (Item No. 7b) Subject: Development Contract with M & L Properties (Hardcoat Inc.)Page 18 378184v2 MNI SA285-95 5 “Minimum Improvements” means renovation on the Development Property of an existing industrial facility containing approximately 33,600 square feet, and construction of an approximately 1,500 square-foot addition, both to be used for manufacturing or industrial purposes and associated office space, along with associated parking lot and landscaping. “Mortgage” means any mortgage made by the Developer that is secured, in whole or in part, with the Development Property and that is a permitted encumbrance pursuant to the provisions of Article VIII of this Agreement. “Parcel” means any parcel of the Development Property. “Prior TIF Districts” means the Victoria Ponds, Park Center Housing, CSM, Mill City, Edgewood, Wolfe Lake, Aquila Commons, and Elmwood Tax Increment Financing Districts previously created by the City and the Authority. “Project” means the Authority’s Redevelopment Project No. 1. “Project Area” means the geographic area within the boundaries of the Project. “Redevelopment Plan” means the Redevelopment Plan for the Project. “Spending Plan” means the Spending Plan for the Prior TIF Districts approved by the City Council and Authority on July 19, 2010, pursuant to the Job Creation Act. “State” means the state of Minnesota. “Tax Increment” means that portion of the real property taxes that is paid with respect to the Development Property and that is remitted to the Authority as tax increment pursuant to the Tax Increment Act. “Tax Increment Act” or “TIF Act” means the Tax Increment Financing Act, Minnesota Statutes Sections 469.174 to 469.179, as amended. “Termination Date” means five years after the date of issuance of the certificate of completion for the Minimum Improvements or earlier termination pursuant to this Agreement. “TIF District” means the Hardcoat tax increment financing district created by the City and Authority on December 20, 2010. “Tax Increment Plan” or “TIF Plan” means the Tax Increment Financing Plan for the TIF District approved by the City Council on December 20, 2010, and as it may be amended. “Tax Official” means any County assessor, County auditor, County or State board of equalization, the commissioner of revenue of the State, or any State or federal district court, the tax court of the State, or the State Supreme Court. EDA Meeting of December 20, 2010 (Item No. 7b) Subject: Development Contract with M & L Properties (Hardcoat Inc.)Page 19 378184v2 MNI SA285-95 6 “Transfer” has the meaning set forth in Section 8.2(a) hereof. “Unavoidable Delays” means delays beyond the reasonable control of the party seeking to be excused as a result thereof which are the direct result of strikes, other labor troubles, prolonged adverse weather or acts of God, fire or other casualty to the Minimum Improvements, litigation commenced by third parties which, by injunction or other similar judicial action, directly results in delays, or acts of any federal, state or local governmental unit (other than the Authority or City in exercising their rights under this Agreement), including without limitation condemnation or threat of condemnation of any portion of the Development Property, which directly result in delays. Unavoidable Delays shall not include delays experienced by the Developer in obtaining permits or governmental approvals necessary to enable construction of the Minimum Improvements by the dates such construction is required under Section 4.3 of this Agreement, so long as the Construction Plans have been approved in accordance with Section 4.2 hereof. EDA Meeting of December 20, 2010 (Item No. 7b) Subject: Development Contract with M & L Properties (Hardcoat Inc.)Page 20 378184v2 MNI SA285-95 7 ARTICLE II Representations and Warranties Section 2.1. Representations by the Authority. (a) The Authority is an economic development authority duly organized and existing under the laws of the State. Under the provisions of the Act and the HRA Act, the Authority has the power to enter into this Agreement and carry out its obligations hereunder. (b) The Authority will use its best efforts to facilitate development of the Minimum Improvements, including but not limited to cooperating with the Developer in obtaining necessary administrative and land use approvals and financing pursuant to Section 7.1 hereof. (c) The Authority will make the CAP Loan, subject to all the terms and conditions of this Agreement. (d) The activities of the Authority are undertaken pursuant to the TIF Act and Job Creation Act for the purpose of fostering the development and redevelopment of certain real property that is occupied by a substandard and obsolete building, which will provide employment opportunities (including construction jobs), revitalize this portion of the Project Area, and increase the tax base. Section 2.2. Representations and Warranties by the Developer. The Developer represents and warrants that: (a) The Developer is a limited liability company, duly established and in good standing under the laws of the State of Minnesota, is not in violation of any provisions of its articles of organization or bylaws, is duly qualified as a domestic limited liability company and authorized to transact business within the State, has power to enter into this Agreement and has duly authorized the execution, delivery, and performance of this Agreement by proper action of its members. (b) If the conditions precedent to construction occur, the Developer will construct the Minimum Improvements in accordance with the terms of this Agreement, the Redevelopment Plan and all local, state and federal laws and regulations (including, but not limited to, environmental, zoning, building code and public health laws and regulations). (c) The Developer will use reasonable efforts to secure all permits, licenses and approvals necessary for construction of the Minimum Improvements. (d) The Developer has received no written notice or other written communication from any local, state or federal official that the activities of the Developer or the Authority in the Project Area may be or will be in violation of any environmental law or regulation (other than those notices or communications of which the Authority is aware). The Developer is aware of EDA Meeting of December 20, 2010 (Item No. 7b) Subject: Development Contract with M & L Properties (Hardcoat Inc.)Page 21 378184v2 MNI SA285-95 8 no facts the existence of which would cause it to be in violation of or give any person a valid claim under any local, state or federal environmental law, regulation or review procedure. (e) Neither the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and conditions of this Agreement is prevented, limited by or conflicts with or results in a breach of, the terms, conditions or provisions of any corporate restriction or any evidences of indebtedness, agreement or instrument of whatever nature to which the Developer is now a party or by which it is bound, or constitutes a default under any of the foregoing. (f) The proposed construction of the Minimum Improvements by the Developer hereunder would not have commenced before July 1, 2011 but for the assistance being provided by the Authority hereunder. [The remainder of this page is intentionally left blank.] EDA Meeting of December 20, 2010 (Item No. 7b) Subject: Development Contract with M & L Properties (Hardcoat Inc.)Page 22 378184v2 MNI SA285-95 9 ARTICLE III Property Acquisition; Acquisition Costs Section 3.1. Status of Development Property. The Development Property consists of the Parcels described in Schedule A. As of the date of this Agreement the Developer has entered into purchase agreements to acquire all Parcels of the Development Property. The Authority has no obligation to acquire the Development Property. Section 3.2. Environmental Conditions. (a) The Developer acknowledges that the Authority makes no representations or warranties as to the condition of the soils on the Development Property or the fitness of the Development Property for construction of the Minimum Improvements or any other purpose for which the Developer may make use of such property, and that the assistance provided to the Developer under this Agreement neither implies any responsibility by the Authority or the City for any contamination of the Development Property nor imposes any obligation on such parties to participate in any cleanup of the Development Property. (b) Without limiting its obligations under Section 8.3 of this Agreement the Developer further agrees that it will indemnify, defend, and hold harmless the Authority, the City, and their governing body members, officers, and employees, from any claims or actions arising out of the presence, if any, of hazardous wastes or pollutants existing on or in the Development Property (including without limitation any asbestos in any existing building), unless and to the extent that such hazardous wastes or pollutants are present as a result of the actions or omissions of the indemnitees. Nothing in this section will be construed to limit or affect any limitations on liability of the City or Authority under State or federal law, including without limitation Minnesota Statutes Sections 466.04 and 604.02. Section 3.3. Relocation. (a) As of the date of this Agreement the Developer has entered into purchase agreements to acquire all Parcels of the Development Property. The Authority has no obligation to acquire the Development Property or any portion thereof, and has no obligation to pay relocation benefits with regard to any Parcel. (b) Without limiting the Developer’s obligations under Section 8.3 hereof, the Developer will indemnify, defend, and hold harmless the Authority, the City, and their governing body members, employees, agents, and contractors from any and all claims for benefits or payments arising out of the relocation or displacement of any person from the Development Property as a result of the implementation of this Agreement. Section 3.4. CAP Loan. (a) Generally. The Authority has determined that, in order to make development of the Minimum Improvements financially feasible and to expedite such development and stimulate the retention and creation of jobs pursuant to the Job Creation Act (including construction jobs), it is necessary to provide the Developer with a CAP Loan for a portion of the costs of acquisition of the Development Property (the “Acquisition Costs”), subject to the terms of this Section. EDA Meeting of December 20, 2010 (Item No. 7b) Subject: Development Contract with M & L Properties (Hardcoat Inc.)Page 23 378184v2 MNI SA285-95 10 (b) Terms. To assist the Developer with payment of the Acquisition Costs incurred by Developer, the Authority shall provide the Developer with the CAP Loan in the principal amount of the lesser of $420,000 or 33% of the hard costs actually incurred in the interior and exterior renovation and construction of the Minimum Improvements (the “Construction Costs”). The terms of the CAP Loan will be substantially those set forth in the form of the CAP Loan Resolution shown in Schedule B, and the CAP Loan will be subject to all terms of the CAP Loan Resolution, which is incorporated herein by reference. The source of funds for the CAP Loan will be Tax Increments from the Prior TIF Districts pursuant to the Spending Plan, in accordance with the Job Creation Act. (c) Disbursement of CAP Loan. The Authority shall disburse the CAP Loan funds to Developer as follows: (i) Before disbursement of any CAP Loan proceeds, the Developer shall have submitted and obtained Authority approval of financing in accordance with Section 7.1. (ii) No more frequently than monthly, the Developer shall deliver to the Authority one or more certificates signed by the Developer’s duly authorized representative (the “Certificates”), containing written evidence satisfactory to the Authority that Developer has incurred the Construction Costs for which reimbursement is sought, which evidence must include copies of the paid invoices or other comparable evidence for the Construction Costs, along with a certification that no part of such costs has been included in any previous Certificate; provided that all Certificates must be submitted no later than December 31, 2011. (iii) Within 30 days of receipt of such Certificates, the Authority shall review the Certificates and approve or reject the evidence of Construction Costs incurred; provided that approval of Construction Costs shall not be unreasonably withheld. (iv) Immediately upon approval of the Certificates, the Authority shall disburse CAP Loan funds in the amount of 90% of the certified Construction Costs identified in such Certificates. The Authority shall retain 10% of such costs (the “Holdback”) in a separate CAP Loan fund until construction of the Minimum Improvements is completed, as evidenced by issuance of a Certificate of Completion. (v) Within 30 days after issuance of a Certificate of Completion for the Minimum Improvements, the Developer shall submit a final certification of total Construction Costs incurred for the construction of the Minimum Improvements. The Authority shall release the Holdback to the extent that 33% of the actual Construction Costs exceeds the amount of such costs disbursed through the CAP Loan. If CAP Loan disbursements exceed 33% of the actual Construction Costs, the Developer shall repay the amount of such excess to the Authority. (c) Termination of right to CAP Loan. In accordance with the Job Creation Act, construction of the Minimum Improvements must commence no later than July 1, 2011, and no EDA Meeting of December 20, 2010 (Item No. 7b) Subject: Development Contract with M & L Properties (Hardcoat Inc.)Page 24 378184v2 MNI SA285-95 11 extensions of the commencement date will be considered. If the construction has not commenced by such date, the Authority has no further obligations under this Section 3.3. (d) Assignment of CAP Loan. TBD (e) Qualifications. The Developer understands and acknowledges that the CAP Loan must be fully repaid, along with accrued interest at the rate of 6.0%, if the Developer fails to maintain the Minimum Improvements in good repair and condition as required under Section 4.1 hereof, if a Transfer of the Development Property occurs at any time before the Termination Date, or if the Authority exercises its right to terminate this Agreement as a remedy for any Event of Default under Article IX hereof. Acquisition Costs exceeding the principal amount of the CAP Loan are the sole responsibility of Developer. Section 3.5. Interfund Loan. (a) The Authority has determined that the total assistance to be provided to the Developer is the lesser of $420,000 or 33% of the Construction Costs. This amount represents the total to be invested by the Authority in assisting the Developer to acquire the Development Property and construct the Minimum Improvements. In addition, the Authority has determined that it will pay the actual costs of consultants and attorneys retained by the Authority in connection with creation and administration of the TIF District and the negotiation and preparation of this Agreement and other incidental agreements and documents related to the development contemplated hereunder (the “Administrative Costs”), in an amount not to exceed $80,000. (b) The Authority will treat the investment and Administrative Costs described in paragraph (a) as an interfund loan (the “Interfund Loan”) within the meaning of Section 469.178, Subdivision 7 of the TIF Act. The maximum principal amount of the Interfund Loan shall be $500,000. The terms of the Interfund Loan are described in the resolution attached as Schedule C (the “Interfund Loan Resolution”). The Authority will pledge Available Tax Increment from the TIF District, as defined in the Interfund Loan Resolution, to payment of the Interfund Loan. The Developer has no rights or interest in any Tax Increment. Section 3.6. Business Subsidy. (a) Exemption. The Developer warrants and represents that the Developer’s investment in the purchase of the Development Property equals at least seventy percent (70%) of the County assessor’s finalized market value of the Development Property for the 2010 assessment year, calculated as follows: Aggregate cost of acquisition of Developer Parcels....................$1,010,000 Assessor’s finalized market value of Development Property (pay 2010).....................................................................$1,184,700 $1,010,000 (net acquisition cost) is 85% of $1,184,700 (assessor’s finalized fair market value of the Development Property payable in 2010). Accordingly, the parties agree and understand that the financial assistance described in this Agreement does not constitute a business subsidy within the meaning of the Business EDA Meeting of December 20, 2010 (Item No. 7b) Subject: Development Contract with M & L Properties (Hardcoat Inc.)Page 25 378184v2 MNI SA285-95 12 Subsidy Act. The Developer releases and waives any claim against the Authority and its governing body members, officers, agents, servants and employees thereof arising from application of the Business Subsidy Act to this Agreement, including without limitation any claim that the Authority failed to comply with the Business Subsidy Act with respect to this Agreement. (b) Job Goals. Notwithstanding the exemption from the requirements of the Business Subsidy Act described in Section 3.6(a), the parties agree and understand that this Agreement is subject to the job creation and retention objectives of the Job Creation Act. Accordingly, through the use of the CAP Loan and other financing, the Developer shall create and/or retain jobs attributable to construction of the Minimum Improvements, and, upon completion of construction of the Minimum Improvements, shall retain at least 14 full-time equivalent jobs in the City and shall create such new full-time equivalent jobs as expansion of Developer’s manufacturing facility permits. (c) Reports. The Developer must submit to the City a written report regarding job and wage goals and results by no later than February 1 of each year, commencing February 1, 2012 and continuing until the date the goals stated in Section 3.6(b) are met; or (ii) if the goals are not met, the date the CAP Loan is repaid in accordance with its terms. The City will provide information to the Developer regarding the required forms. If the Developer fails to timely file any report required under this Section, the City will mail the Developer a warning within one week after the required filing date. If, after 14 days of the postmarked date of the warning, the Developer fails to provide a report, the Developer must pay to the City a penalty of $100 for each subsequent day until the report is filed. The maximum aggregate penalty payable under this Section is $1,000. [The remainder of this page is intentionally left blank.] EDA Meeting of December 20, 2010 (Item No. 7b) Subject: Development Contract with M & L Properties (Hardcoat Inc.)Page 26 378184v2 MNI SA285-95 13 ARTICLE IV Construction of Minimum Improvements Section 4.1. Construction of Improvements. The Developer agrees that it will construct or cause construction of the Minimum Improvements on the Development Property in accordance with the approved Construction Plans and that it will, during any period while the Developer retains ownership of any portion of the Minimum Improvements, operate and maintain, preserve and keep the Minimum Improvements or cause the Minimum Improvements to be maintained, preserved and kept with the appurtenances and every part and parcel thereof, in good repair and condition. Section 4.2. Construction Plans. (a) Before commencing construction of the Minimum Improvements, the Developer shall submit to the Authority Construction Plans for the Minimum Improvements. The Construction Plans shall provide for the construction of the Minimum Improvements and shall be in conformity with this Agreement, the Redevelopment Plan and all applicable State and local laws and regulations. The Authority will approve the Construction Plans in writing if (i) the Construction Plans conform to all terms and conditions of this Agreement; (ii) the Construction Plans conform to the goals and objectives of the Redevelopment Plan; (iii) the Construction Plans conform to all applicable federal, state and local laws, ordinances, rules and regulations; (iv) the Construction Plans are adequate to provide for construction of the Minimum Improvements; (v) the Construction Plans do not provide for expenditures in excess of the funds available to the Developer for construction of the Minimum Improvements; and (vi) no Event of Default has occurred. The Authority’s approval shall not be unreasonably withheld. Said approval shall constitute a conclusive determination that the Construction Plans (and the Minimum Improvements, constructed in accordance with said plans) comply to the Authority’s satisfaction with the provisions of this Agreement relating thereto. The Developer hereby waives any and all claims and causes of action whatsoever resulting from the review of the Construction Plans by the Authority and/or any changes in the Construction Plans requested by the Authority. Neither the Authority nor any employee or official of the Authority shall be responsible in any manner whatsoever for any defect in the Construction Plans or in any work done pursuant to the Construction Plans, including changes requested by the Authority. (b) If the Developer desires to make any material change in the Construction Plans or any component thereof after their approval by the Authority, the Developer shall submit the proposed change to the Authority for its approval. For the purpose of this section, the term “material” means changes that increase or decrease construction costs by $100,000 or more. The Authority’s approval of any such change in the Construction Plans will not be unreasonably withheld. Section 4.3. Commencement and Completion of Construction. The Developer shall commence construction of the Minimum Improvements by July 1, 2011. Subject to Unavoidable Delays, the Developer shall complete the construction of the Minimum Improvements by EDA Meeting of December 20, 2010 (Item No. 7b) Subject: Development Contract with M & L Properties (Hardcoat Inc.)Page 27 378184v2 MNI SA285-95 14 December 1, 2011. All work with respect to the Minimum Improvements to be constructed or provided by the Developer on the Development Property shall be in conformity with the Construction Plans as submitted by the Developer and approved by the Authority. For purposes of this Agreement, construction shall be deemed to commence upon the commencement of environmental remediation activities necessary to carry out the construction of the Minimum Improvements. The Developer agrees for itself, its successors, and assigns, and every successor in interest to the Development Property, or any part thereof, that the Developer, and such successors and assigns, shall promptly begin and diligently prosecute to completion the development of the Development Property through the construction of the Minimum Improvements thereon, and that such construction shall in any event be commenced and completed within the period specified in this Section 4.3 of this Agreement. After the date of this Agreement and until the Minimum Improvements have been fully leased, the Developer shall make reports, in such detail and at such times as may reasonably be requested by the Authority, but no more than monthly, as to the actual progress of the Developer with respect to such construction and leasing. Section 4.4. Certificate of Completion. (a) Promptly after completion of the Minimum Improvements in accordance with those provisions of the Agreement relating solely to the obligations of the Developer to construct the Minimum Improvements (including the dates for beginning and completion thereof), the Authority Representative shall deliver to the Developer a Certificate in substantially the form shown as Schedule D, in recordable form and executed by the Authority. (b) If the Authority Representative shall refuse or fail to provide any certification in accordance with the provisions of this Section 4.4 of this Agreement, the Authority Representative shall, within thirty (30) days after written request by the Developer, provide the Developer with a written statement, indicating in adequate detail in what respects the Developer has failed to complete the Minimum Improvements in accordance with the provisions of the Agreement, or is otherwise in default, and what measures or acts it will be necessary, in the opinion of the Authority, for the Developer to take or perform in order for the Authority to issue the Certificate of Completion. Issuance of the Certificate of Completion shall not be unreasonably withheld. (c) The construction of the Minimum Improvements shall be deemed to be substantially complete upon issuance of a certificate of occupancy for the Minimum Improvements, and upon determination by the Authority Representative that all related site improvements on the Development Property have been substantially completed in accordance with approved Construction Plans. Section 4.5. Records. The Authority and the City, through any authorized representatives, shall have the right at all reasonable times after reasonable notice to inspect, examine and copy all books and records of Developer relating to the Minimum Improvements. Such records shall be kept and maintained by Developer through the Termination Date. EDA Meeting of December 20, 2010 (Item No. 7b) Subject: Development Contract with M & L Properties (Hardcoat Inc.)Page 28 378184v2 MNI SA285-95 15 ARTICLE V Insurance Section 5.1. Insurance. (a) The Developer will provide and maintain at all times during the process of constructing the Minimum Improvements an All Risk Broad Form Basis Insurance Policy and, from time to time during that period, at the request of the Authority, furnish the Authority with proof of payment of premiums on policies covering the following: (i) Builder’s risk insurance, written on the so-called “Builder’s Risk -- Completed Value Basis,” in an amount equal to 100% of the principal amount of the Note, and with coverage available in nonreporting form on the so-called “all risk” form of policy. The interest of the Authority shall be protected in accordance with a clause in form and content satisfactory to the Authority; (ii) Comprehensive general liability insurance (including operations, contingent liability, operations of subcontractors, completed operations, and contractual liability insurance) together with an Owner’s Protective Liability Policy with limits against bodily injury and property damage of not less than $1,000,000 for each occurrence (to accomplish the above-required limits, an umbrella excess liability policy may be used). The Authority shall be listed as an additional insured on the policy; and (iii) Workers’ compensation insurance, with statutory coverage, provided that the Developer may be self-insured with respect to all or any part of its liability for workers’ compensation. (b) Upon completion of construction of the Minimum Improvements and prior to the Maturity Date, the Developer shall maintain, or cause to be maintained, at its cost and expense, and from time to time at the request of the Authority shall furnish proof of the payment of premiums on, insurance as follows: (i) Insurance against loss and/or damage to the Minimum Improvements under a policy or policies covering such risks as are ordinarily insured against by similar businesses. (ii) Comprehensive general public liability insurance, including personal injury liability (with employee exclusion deleted), against liability for injuries to persons and/or property, in the minimum amount for each occurrence and for each year of $1,000,000, and shall be endorsed to show the City and Authority as additional insureds. (iii) Such other insurance, including workers’ compensation insurance respecting all employees of the Developer, in such amount as is customarily carried by like organizations engaged in like activities of comparable size and liability exposure; EDA Meeting of December 20, 2010 (Item No. 7b) Subject: Development Contract with M & L Properties (Hardcoat Inc.)Page 29 378184v2 MNI SA285-95 16 provided that the Developer may be self-insured with respect to all or any part of its liability for workers’ compensation. (c) All insurance required in Article V of this Agreement shall be taken out and maintained in responsible insurance companies selected by the Developer that are authorized under the laws of the State to assume the risks covered thereby. Upon request, the Developer will deposit annually with the Authority policies evidencing all such insurance, or a certificate or certificates or binders of the respective insurers stating that such insurance is in force and effect. Unless otherwise provided in this Article V of this Agreement each policy shall contain a provision that the insurer shall not cancel nor modify it in such a way as to reduce the coverage provided below the amounts required herein without giving written notice to the Developer and the Authority at least thirty (30) days before the cancellation or modification becomes effective. In lieu of separate policies, the Developer may maintain a single policy, blanket or umbrella policies, or a combination thereof, having the coverage required herein, in which event the Developer shall deposit with the Authority a certificate or certificates of the respective insurers as to the amount of coverage in force upon the Minimum Improvements. (d) The Developer agrees to notify the Authority immediately in the case of damage exceeding $100,000 in amount to, or destruction of, the Minimum Improvements or any portion thereof resulting from fire or other casualty. In such event the Developer will forthwith repair, reconstruct, and restore the Minimum Improvements to substantially the same or an improved condition or value as it existed prior to the event causing such damage and, to the extent necessary to accomplish such repair, reconstruction, and restoration, the Developer will apply the net proceeds of any insurance relating to such damage received by the Developer to the payment or reimbursement of the costs thereof. The Developer shall complete the repair, reconstruction and restoration of the Minimum Improvements, regardless of whether the net proceeds of insurance received by the Developer for such purposes are sufficient to pay for the same. Any net proceeds remaining after completion of such repairs, construction, and restoration shall be the property of the Developer. (e) In lieu of its obligation to reconstruct the Minimum Improvements as set forth in this Section, the Developer shall have the option of paying to the Authority an amount that, in the opinion of the Authority and its fiscal consultant, is sufficient to pay or redeem the outstanding principal and accrued interest on the CAP Loan. (f) The Developer and the Authority agree that all of the insurance provisions set forth in this Article V shall terminate upon the termination of this Agreement. Section 5.2. Subordination. Notwithstanding anything to the contrary herein, the rights of the Authority with respect to the receipt and application of any insurance proceeds shall, in all respects, be subordinate and subject to the rights of any Holder under a Mortgage allowed pursuant to Article VII of this Agreement. EDA Meeting of December 20, 2010 (Item No. 7b) Subject: Development Contract with M & L Properties (Hardcoat Inc.)Page 30 378184v2 MNI SA285-95 17 ARTICLE VI Tax Increment; Taxes Section 6.1. Right to Collect Delinquent Taxes. The Developer acknowledges that the Authority is providing substantial aid and assistance in furtherance of the development through reimbursement of Acquisition Costs. The Developer further understands that the Tax Increments pledged to repayment of the Interfund Loan described in Section 3.6 hereof are derived from real estate taxes on the Development Property, which taxes must be promptly and timely paid. To that end, the Developer agrees for itself, its successors and assigns, in addition to the obligation pursuant to statute to pay real estate taxes, that it is also obligated by reason of this Agreement to pay before delinquency all real estate taxes assessed against the Development Property and the Minimum Improvements on the basis of Minimum Market Value as defined in Section 6.3. The Developer acknowledges that this obligation creates a contractual right on behalf of the Authority to sue the Developer or its successors and assigns to collect delinquent real estate taxes and any penalty or interest thereon and to pay over the same as a tax payment to the county auditor. In any such suit, the Authority shall also be entitled to recover its costs, expenses and reasonable attorney fees. Section 6.2. Review of Taxes. The Developer agrees that prior to the date of decertification of the TIF District, it will not cause a reduction in the real property taxes paid in respect of the Development Property through: (A) willful destruction of the Development Property or any part thereof; or (B) willful refusal to reconstruct damaged or destroyed property pursuant to Section 5.1 of this Agreement, except as provided in Section 5.1(e). The Developer also agrees that it will not, prior to the date of decertification of the TIF District, seek exemption from property tax for the Development Property or any portion thereof or transfer or permit the transfer of the Development Property to any entity that is exempt from real property taxes and state law (other than any portion thereof dedicated or conveyed to the City in accordance with platting of the Development Property), or apply for a deferral of property tax on the Development Property pursuant to any law. Section 6.3. Assessment Agreement. (a) Upon execution of this Agreement, the Developer shall, with the Authority, execute an Assessment Agreement pursuant to Minnesota Statutes, Section 469.177, subd. 8, specifying an assessor’s minimum Market Value for the Development Property and Minimum Improvements constructed thereon (the Minimum Market Value”). The amount of the Minimum Market Value shall be $2,425,000 as of January 2, 2012, and each January 2 thereafter, notwithstanding the status of construction by such dates. (b) The Assessment Agreement shall be substantially in the form attached hereto as Schedule F. Nothing in the Assessment Agreement shall limit the discretion of the assessor to assign a market value to the property in excess of such assessor’s Minimum Market Value, for shall any provision in the Assessment Agreement limit the Developer’s discretion or right to contest an assignment of a market value in excess of the Minimum Market Value. The Assessment Agreement shall remain in force for the period specified in the Assessment Agreement. EDA Meeting of December 20, 2010 (Item No. 7b) Subject: Development Contract with M & L Properties (Hardcoat Inc.)Page 31 378184v2 MNI SA285-95 18 ARTICLE VII Other Financing Section 7.1. Generally. Before delivery of the CAP Loan, the Developer shall submit to the Authority or provide access thereto for review by Authority staff, consultants and agents, evidence reasonably satisfactory to the Authority that Developer has available funds, or commitments to obtain funds, whether in the nature of mortgage financing, equity, grants, loans, or other sources sufficient for paying the cost of developing the Minimum Improvements, provided that any lender or grantor commitments shall be subject only to such conditions as are normal and customary in the commercial lending industry. Section 7.2. Authority’s Option to Cure Default on Mortgage. In the event that any portion of the Developer’s funds is provided through mortgage financing, and there occurs a default under any Mortgage reviewed by the Authority pursuant to Article VII of this Agreement, the Developer shall cause the Authority to receive copies of any notice of default received by the Developer from the holder of such Mortgage. Thereafter, the Authority shall have the right, but not the obligation, to cure any such default on behalf of the Developer within such cure periods as are available to the Developer under the Mortgage documents. Section 7.3. Modification; Subordination. The Authority agrees to subordinate its rights under this Agreement to the Holder of any Mortgage securing construction or permanent financing, in accordance with the terms of a subordination agreement in a form reasonably acceptable to the Authority. [The remainder of this page is intentionally left blank.] EDA Meeting of December 20, 2010 (Item No. 7b) Subject: Development Contract with M & L Properties (Hardcoat Inc.)Page 32 378184v2 MNI SA285-95 19 ARTICLE VIII Prohibitions Against Assignment and Transfer; Indemnification Section 8.1. Representation as to Development. The Developer represents and agrees that its purchase of the Development Property, and its other undertakings pursuant to the Agreement, are, and will be used, for the purpose of development of the Development Property and not for speculation in land holding. Section 8.2. Prohibition Against Developer’s Transfer of Property and Assignment of Agreement. The Developer represents and agrees that during the term of this Agreement: (a) Except only by way of security for, and only for, the purpose of obtaining financing necessary to enable the Developer or any successor in interest to the Development Property, or any part thereof, to perform its obligations with respect to undertaking the development contemplated under this Agreement, and any other purpose authorized by this Agreement, the Developer has not made or created and will not make or create or suffer to be made or created any total or partial sale, assignment, conveyance, or lease, or any trust or power, or transfer in any other mode or form of or with respect to this Agreement or the Development Property or any part thereof or any interest therein, or any contract or agreement to do any of the same, to any person or entity whether or not related in any way to the Developer (collectively, a “Transfer”), without the prior written approval of the Authority (whose approval will not be unreasonably withheld, subject to the standards described in paragraph (b) of this Section) unless the Developer remains liable and bound by this Development Agreement in which event the Authority’s approval is not required. Any such Transfer shall be subject to the provisions of this Agreement. For the purposes of this Agreement, the term Transfer does not include (i) acquisition of a controlling interest in Developer by another entity or merger of Developer with another entity; or (ii) any sale, conveyance, or transfer in any form to any Affiliate. (b) In the event the Developer, upon Transfer of the Development Property or any portion thereof either before or after issuance of the final Certificate of Completion, seeks to be released from its obligations under this Development Agreement as to the portions of the Development Property that is transferred, the Authority shall be entitled to require, except as otherwise provided in the Agreement, as conditions to any such release that: (i) Any proposed transferee shall have the qualifications and financial responsibility, in the reasonable judgment of the Authority, necessary and adequate to fulfill the obligations undertaken in this Agreement by the Developer as to the portion of the Development Property to be transferred. (ii) Any proposed transferee, by instrument in writing satisfactory to the Authority and in form recordable in the public land records of Hennepin County, Minnesota, shall, for itself and its successors and assigns, and expressly for the benefit of the Authority, have expressly assumed all of the obligations of the Developer under this Agreement as to the portion of the Development Property to be transferred and agreed to EDA Meeting of December 20, 2010 (Item No. 7b) Subject: Development Contract with M & L Properties (Hardcoat Inc.)Page 33 378184v2 MNI SA285-95 20 be subject to all the conditions and restrictions to which the Developer is subject as to such portion; provided, however, that the fact that any transferee of, or any other successor in interest whatsoever to, the Development Property, or any part thereof, shall not, for whatever reason, have assumed such obligations or so agreed, and shall not (unless and only to the extent otherwise specifically provided in this Agreement or agreed to in writing by the Authority) deprive the Authority of any rights or remedies or controls with respect to the Development Property, the Minimum Improvements or any part thereof or the construction of the Minimum Improvements; it being the intent of the parties as expressed in this Agreement that (to the fullest extent permitted at law and in equity and excepting only in the manner and to the extent specifically provided otherwise in this Agreement) no transfer of, or change with respect to, ownership in the Development Property or any part thereof, or any interest therein, however consummated or occurring, and whether voluntary or involuntary, shall operate, legally, or practically, to deprive or limit the Authority of or with respect to any rights or remedies on controls provided in or resulting from this Agreement with respect to the Development Property that the Authority would have had, had there been no such transfer or change. In the absence of specific written agreement by the Authority to the contrary, no such transfer or approval by the Authority thereof shall be deemed to relieve the Developer, or any other party bound in any way by this Agreement or otherwise with respect to the Development Property, from any of its obligations with respect thereto. (iii) Any and all instruments and other legal documents involved in effecting the transfer of any interest in this Agreement or the Development Property governed by this Article VIII, shall be in a form reasonably satisfactory to the Authority. (iv) At the written request of Developer, the Authority shall execute and deliver to Developer and the proposed transferee an estoppel certificate containing commercially customary and reasonable certifications. In the event the foregoing conditions are satisfied then the Developer shall be released from its obligation under this Agreement, as to the portion of the Development Property that is transferred, assigned, or otherwise conveyed. Section 8.3. Release and Indemnification Covenants. (a) Except for any willful misrepresentation or any willful or wanton misconduct or negligence of the Indemnified Parties as hereinafter defined, and except for any breach by any of the Indemnified Parties of their obligations under this Agreement, the Developer releases from and covenants and agrees that the Authority, the City, and the governing body members, officers, agents, servants, and employees thereof (the “Indemnified Parties”) shall not be liable for and agrees to indemnify and hold harmless the Indemnified Parties against any loss or damage to property or any injury to or death of any person occurring at or about or resulting from any defect in the Development Property or the Minimum Improvements. (b) Except for any willful misrepresentation or any willful or wanton misconduct or negligence of the Indemnified Parties, and except for any breach by any of the Indemnified Parties of their obligations under this Agreement (including without limitation any failure by the EDA Meeting of December 20, 2010 (Item No. 7b) Subject: Development Contract with M & L Properties (Hardcoat Inc.)Page 34 378184v2 MNI SA285-95 21 Authority to perform any procedure required under law in connection with establishment of the TIF District), the Developer agrees to protect and defend the Indemnified Parties, now and forever, and further agrees to hold the aforesaid harmless from any claim, demand, suit, action, or other proceeding whatsoever by any person or entity whatsoever arising or purportedly arising from this Agreement, or the transactions contemplated hereby or the acquisition, construction, installation, ownership, maintenance, and operation of the Development Property. (c) Except for any willful misrepresentation or any willful or wanton misconduct or negligence of the Indemnified Parties as hereinafter defined, and except for any breach by any of the Indemnified Parties of their obligations under this Agreement, the Indemnified Parties shall not be liable for any damage or injury to the persons or property of the Developer or its officers, agents, servants, or employees or any other person who may be about the Development Property or Minimum Improvements. (d) All covenants, stipulations, promises, agreements and obligations of the Authority contained herein shall be deemed to be the covenants, stipulations, promises, agreements, and obligations of such entity and not of any governing body member, officer, agent, servant, or employee of such entities in the individual capacity thereof. [The remainder of this page is intentionally left blank.] EDA Meeting of December 20, 2010 (Item No. 7b) Subject: Development Contract with M & L Properties (Hardcoat Inc.)Page 35 378184v2 MNI SA285-95 22 ARTICLE IX Events of Default Section 9.1. Events of Default Defined. The following shall be “Events of Default” under this Agreement and the term “Event of Default” shall mean, whenever it is used in this Agreement, any one or more of the following events, after the non-defaulting party provides thirty (30) days written notice to the defaulting party of the event, but only if the event has not been cured within said thirty (30) days or, if the event is by its nature incurable within thirty (30) days, the defaulting party does not, within such thirty-day period, provide assurances reasonably satisfactory to the party providing notice of default that the event will be cured and will be cured as soon as reasonably possible: (a) Failure by the Developer or Authority to observe or perform any covenant, condition, obligation, or agreement on its part to be observed or performed under this Agreement, unless such failure to perform is the result of an Unavoidable Delay. (b) If, before issuance of the certificate of completion for all the Minimum Improvements, the Developer shall (i) file any petition in bankruptcy or for any reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar relief under the United States Bankruptcy Act or under any similar federal or State law, which action is not dismissed within sixty (60) days after filing; or (ii) make an assignment for benefit of its creditors; or (iii) admit in writing its inability to pay its debts generally as they become due; or (iv) be adjudicated a bankrupt or insolvent. Section 9.2. Remedies on Default. Whenever any Event of Default referred to in Section 9.1 of this Agreement occurs, the non-defaulting party may: (a) Suspend its performance under this Agreement until it receives assurances that the defaulting party will cure its default and continue its performance under the Agreement. (b) Upon a default by the Developer under this Agreement, the Authority may accelerate the CAP Loan and terminate this Agreement. (c) Take whatever action, including legal, equitable, or administrative action, which may appear necessary or desirable to collect any payments due under this Agreement, or to enforce performance and observance of any obligation, agreement, or covenant under this EDA Meeting of December 20, 2010 (Item No. 7b) Subject: Development Contract with M & L Properties (Hardcoat Inc.)Page 36 378184v2 MNI SA285-95 23 Agreement, provided that nothing contained herein shall give the Authority the right to seek specific performance by Developer of the construction of the Minimum Improvements. Section 9.3. No Remedy Exclusive. No remedy herein conferred upon or reserved to any party is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. To entitle the Authority to exercise any remedy reserved to it, it shall not be necessary to give notice, other than such notice as may be required in this Article IX. Section 9.4. No Additional Waiver Implied by One Waiver. In the event any agreement contained in this Agreement should be breached by either party and thereafter waived by the other party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other concurrent, previous or subsequent breach hereunder. Section 9.5. Attorney Fees. Whenever any Event of Default occurs and if the non- defaulting party employs attorneys or incurs other expenses for the collection of payments due or to become due or for the enforcement of performance or observance of any obligation or agreement on the part of the defaulting party under this Agreement, the defaulting party shall, within ten (10) days of written demand by the non-defaulting party, pay to the non-defaulting party the reasonable fees of such attorneys and such other expenses so incurred by the non- defaulting party. [The remainder of this page is intentionally left blank.] EDA Meeting of December 20, 2010 (Item No. 7b) Subject: Development Contract with M & L Properties (Hardcoat Inc.)Page 37 378184v2 MNI SA285-95 24 ARTICLE X Additional Provisions Section 10.1. Conflict of Interests; Representatives Not Individually Liable. The Authority and the Developer, to the best of their respective knowledge, represent and agree that no member, official, or employee of the Authority shall have any personal interest, direct or indirect, in the Agreement, nor shall any such member, official, or employee participate in any decision relating to the Agreement that affects his personal interests or the interests of any corporation, partnership, or association in which he, directly or indirectly, is interested. No member, official, or employee of the City or Authority shall be personally liable to the Developer, or any successor in interest, in the event of any default or breach by the Authority or for any amount that may become due to the Developer or successor or on any obligations under the terms of the Agreement. Section 10.2. Equal Employment Opportunity. The Developer, for itself and its successors and assigns, agrees that during the construction of the Minimum Improvements provided for in the Agreement it will comply with all applicable federal, state, and local equal employment and non-discrimination laws and regulations. Section 10.3. Restrictions on Use. The Developer agrees that until the Termination Date, the Developer, and such successors and assigns, shall devote the Development Property to the operation of the Minimum Improvements as defined in Section 1.1 hereof, and shall not discriminate upon the basis of race, color, creed, sex or national origin in the sale, lease, or rental or in the use or occupancy of the Development Property or any improvements erected or to be erected thereon, or any part thereof. Developer agrees that no portion of the Development Property will be used for a sexually-oriented business, a pawnshop, a check-cashing business, a tattoo business, or a gun business. Section 10.4. Provisions Not Merged With Deed. None of the provisions of this Agreement are intended to or shall be merged by reason of any deed transferring any interest in the Development Property and any such deed shall not be deemed to affect or impair the provisions and covenants of this Agreement. Section 10.5. Titles of Articles and Sections. Any titles of the several parts, Articles, and Sections of the Agreement are inserted for convenience of reference only and shall be disregarded in construing or interpreting any of its provisions. Section 10.6. Notices and Demands. Except as otherwise expressly provided in this Agreement, a notice, demand, or other communication under the Agreement by either party to the other shall be sufficiently given or delivered if it is dispatched by registered or certified mail, postage prepaid, return receipt requested, or delivered personally, to the following addresses (or to such other addresses as either party may notify the other): EDA Meeting of December 20, 2010 (Item No. 7b) Subject: Development Contract with M & L Properties (Hardcoat Inc.)Page 38 378184v2 MNI SA285-95 25 To Developer: M & L Properties, LLC Attn: Michael Kelner 7300 West Lake Street St. Louis Park, Minnesota 55416 With a copy to: Gray Plant Mooty Attn: Thomas L. Johnson 500 IDS Center 80 South Eighth Street Minneapolis, Minnesota 55402 To Authority: St. Louis Park Economic Development Authority Attn: Executive Director 5005 Minnetonka Boulevard St. Louis Park, Minnesota 55416-2518 With a copy to: Kennedy & Graven, Chartered 470 US Bank Plaza 200 South Sixth Street Minneapolis, Minnesota 55402 Section 10.7. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same instrument. Section 10.8. Recording. The Authority may record this Agreement and any amendments thereto with the Hennepin County recorder. The Developer shall pay all costs for recording. The Developer’s obligations under this Agreement are covenants running with the land for the term of this Agreement, enforceable by the Authority against the Developer, its successor and assigns, and every successor in interest to the Development Property, or any part thereof or any interest therein. Section 10.9 Amendment. This Agreement may be amended only by written agreement approved by the Authority and the Developer. Section 10.10. Authority Approvals. Unless otherwise specified, any approval required by the Authority under this Agreement may be given by the Authority Representative, except that final approval of issuance of the Note shall be made by the Authority’s board of commissioners. [The remainder of this page is intentionally left blank.] EDA Meeting of December 20, 2010 (Item No. 7b) Subject: Development Contract with M & L Properties (Hardcoat Inc.)Page 39 378184v2 MNI SA285-95 26 IN WITNESS WHEREOF, the Authority and Developer have caused this Agreement to be duly executed by their duly authorized representatives as of the date first above written. ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY By Its President By Its Executive Director STATE OF MINNESOTA ) ) SS. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this ____ day of _________, 2010 by ______________________ and ___________________ the President and Executive Director of the St. Louis Park Economic Development Authority, on behalf of the Authority. Notary Public EDA Meeting of December 20, 2010 (Item No. 7b) Subject: Development Contract with M & L Properties (Hardcoat Inc.)Page 40 378184v2 MNI SA285-95 27 M & L PROPERTIES, LLC By Its STATE OF MINNESOTA ) ) SS. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this _____ day of ________, 2010, by _________________________, the _________________ of M & L Properties, LLC, a Minnesota limited liability company, on behalf of the company. Notary Public EDA Meeting of December 20, 2010 (Item No. 7b) Subject: Development Contract with M & L Properties (Hardcoat Inc.)Page 41 A-1 378184v2 MNI SA285-95 SCHEDULE A DEVELOPMENT PROPERTY EDA Meeting of December 20, 2010 (Item No. 7b) Subject: Development Contract with M & L Properties (Hardcoat Inc.)Page 42 320882v1 MNI MN190-131 B-1 SCHEDULE B CAP LOAN RESOLUTION ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. ______ RESOLUTION APPROVING A CONSTRUCTION ASSISTANCE PROGRAM LOAN TO M & L PROPERTIES, LLC, AND PROVIDING THE FORM, TERMS, COVENANTS AND DIRECTIONS FOR SUCH LOAN. BE IT RESOLVED BY the Board of Commissioners (“Board”) of the St. Louis Park Economic Development Authority, St. Louis Park, Minnesota (the “Authority”) as follows: Section 1. Authorization; Award of Loan. 1.01. Authorization. The Authority and the City of St. Louis Park have heretofore approved the establishment of the Victoria Ponds, Park Center Housing, CSM, Mill City, Edgewood, Wolfe Lake, Aquila Commons, and Elmwood Tax Increment Financing District (the “TIF Districts”) within Redevelopment Project No. 1 (“Project”), have adopted a spending plan (the “Spending Plan”) pursuant to Minnesota Laws 2010, Chapter 216, Section 32 (the “Job Creation Act”) for the purpose of financing certain improvements within the Project using tax increments from the TIF Districts to stimulate job creation, and have established a Construction Assistance Program (“CAP”) to provide further guidelines for use of the tax increments from the TIF Districts under the Spending Plan. Pursuant to the Job Creation Act, the Authority is authorized to provide loans, interest rate subsidies, or assistance in any form to private development consisting of the construction or substantial rehabilitation of buildings and ancillary facilities to create or retain jobs. Such assistance is payable from all or any portion of revenues derived from the TIF Districts and authorized for such use under the Spending Plan. The Authority hereby finds and determines that it is in the best interests of the Authority to provide a CAP Loan to M & L Properties, LLC (the “Developer”) for the purpose of financing certain land acquisition costs (the “Acquisition Costs”) in connection with the purchase, renovation and expansion of a manufacturing facility by the Developer (the “Minimum Improvements”). 1.02. Approval of Agreement; Terms of the Loan. (a) The Authority hereby authorizes the President and Executive Director to execute the Contract for Private Development between the Authority and the Developer (the “Agreement”) in substantially the form presented to the Board, subject to modifications that do not alter the substance of the transaction and that are approved by the President and Executive Director, provided that execution of the Agreement by EDA Meeting of December 20, 2010 (Item No. 7b) Subject: Development Contract with M & L Properties (Hardcoat Inc.)Page 43 B-2 378184v2 MNI SA285-95 those officials shall be conclusive evidence of their approval. All capitalized terms in this resolution have the meaning provided in the Agreement unless the context requires otherwise. (b) Pursuant to the Agreement, the Authority will loan to the Developer the CAP Loan in the principal amount of the lesser of $420,000 or 33% of the actual costs of construction and renovation of the Minimum Improvements, evidenced by a promissory note (the “Note”) and secured by a mortgage (the “Mortgage”) to be executed and delivered to the Authority by the Developer in substantially the forms attached hereto as Exhibit A and Exhibit B. Proceeds of the CAP Loan shall be disbursed in accordance with Section 3.4 of the Agreement. The Note shall bear interest at the rate of 6.0% per annum, subject to the provisions of Section 2 hereof. Section 2. Repayment of Loan. The entire unpaid balance of principal and interest shall be due and payable upon the earlier of the following: (i) thirty (30) days after written notification by the Authority to the Developer of the occurrence of an Event of Default as defined in the Agreement or Mortgage; or (ii) ten (10) days after the Developer makes or allows to be made any total or partial transfer, sale, assignment, conveyance, lease, or transfer in any other mode, of the Development Property, if such transfer occurs within five (5) years after the issuance of a Certificate of Completion for the Minimum Improvements as provided in Section 4.4 of the Agreement. If the Developer does not sell the Development Property within five (5) years of the issuance of the Certificate of Completion for the Minimum Improvements, no payments of interest shall be payable on this Note and the principal balance shall be forgiven. Section 3. Effective Date. This resolution shall be effective upon approval. Reviewed for Administration: Adopted by the Economic Development Authority __________, 2010 Executive Director President Attest Secretary EDA Meeting of December 20, 2010 (Item No. 7b) Subject: Development Contract with M & L Properties (Hardcoat Inc.)Page 44 B-3 378184v2 MNI SA285-95 Exhibit A to CAP Loan Resolution PROMISSORY NOTE $_______________ ____________, 20__ Interest rate: 6.0% M & L Properties, LLC (“Maker”), for value received, hereby promises to pay to the St. Louis Park Economic Development Authority, a public body corporate and politic under the laws of Minnesota, or its assigns (collectively referred to herein as “Holder”), at its designated principal office or such other place as the Holder may designate in writing, the principal sum of ____________________ and no/100ths Dollars ($_______.00), with interest thereon at the rate of six percent (6.0%) per annum, in any coin or currency that at the time or times of payment is legal tender for the payment of private debts in the United States of America. The principal of and interest on this Note is payable as follows: 1. Simple interest shall accrue from the date of delivery, calculated on the basis of a 360-day year consisting of twelve 30-day months. The entire unpaid balance of principal and interest shall be due and payable upon the earlier of the following: (i) thirty (30) days after written notification by Holder to Maker of the occurrence of an Event of Default as defined in the Contract for Private Development between the Maker and the Holder, dated as of ___________, 2010 (the “Agreement”) or the Mortgage given by the Maker to the Holder of even date herewith (the “Mortgage”) and demand of payment according to Section 15 of the Mortgage; or (ii) ten (10) days after the Maker makes or allows to be made any total or partial transfer, sale, assignment, conveyance, lease, or transfer in any other mode, of the Development Property (as defined in the Agreement and the Mortgage), if such transfer occurs within five (5) years after the date of issuance of a Certificate of Completion for the Minimum Improvements as defined in the Agreement. If the Maker does not sell the Development Property within five (5) years of the date of the Certificate of Completion and no Event of Default occurs and continues by such date, no interest payments shall be payable on this Note and the entire principal balance shall be forgiven. 2. This Note is secured by the Mortgage on the Development Property, given by the Maker to the Holder on the date hereof. All of the agreements, conditions, covenants, provisions, and stipulations contained in the Agreement and the Mortgage are hereby made a part of this Note to the same extent and with the same force and effect as if they were fully set forth herein. It is agreed that time is of the essence of this Note. If an Event of Default occurs under the Agreement, the Mortgage, or any other instrument securing this Note, then the Holder of this Note may at its right and option, without notice, declare immediately due and payable the principal balance of this Note and interest accrued thereon, together with reasonable attorneys fees and expenses incurred by the Holder of this Note in collecting or enforcing payment hereof, whether by lawsuit or otherwise, and all other sums due hereunder or any instrument securing this Note. The Maker of this Note agrees that the Holder of this Note may, without notice to and without affecting the liability of the Maker, accept additional or substitute security for this Note, or release any security or any party liable for this Note or extend or renew this Note. EDA Meeting of December 20, 2010 (Item No. 7b) Subject: Development Contract with M & L Properties (Hardcoat Inc.)Page 45 B-4 378184v2 MNI SA285-95 3. The remedies of the Holder of this Note as provided herein, and in the Agreement, the Mortgage, or any other instrument securing this Note, shall be cumulative and concurrent and may be pursued singly, successively, or together, and, at the sole discretion of the Holder of this Note, may be exercised as often as occasion therefor shall occur; and the failure to exercise any such right or remedy shall in no event be construed as a waiver or release thereof. The Holder of this Note shall not be deemed, by any act of omission or commission, to have waived any of its rights or remedies hereunder unless such waiver is in writing and signed by the Holder and then only to the extent specifically set forth in the writing. A waiver with reference to one event shall not be construed as continuing or as a bar to or waiver of any right or remedy as to a subsequent event. This Note may not be amended, modified, or changed except only by an instrument in writing signed by the party against whom enforcement of any such amendment, modifications, or change is sought. 4. If any term of this Note, or the application thereof to any person or circumstances shall, to any extent, be invalid or unenforceable, the remainder of this Note, or the application of such term to persons or circumstances other than those to which it is invalid or unenforceable shall not be affected thereby, and each term of this Note shall be valid and enforceable to the fullest extent permitted by law. 5. If any Event of Default occurs, and if Holder engages legal counsel or others in connection with advice to Holder or Holder’s rights and remedies under the Agreement or this Note, Maker shall pay all reasonable expenses incurred by Holder for such persons, irrespective of whether any suite or other proceeding has been or is filed or commenced. Any such expenses, costs and charges shall constitute additional principal, payable upon demand, and subject to this Note and the Mortgage. 6. It is intended that this Note is made with reference to and shall be construed as a Minnesota contract and is governed by the laws thereof. Any disputes, controversies, or claims arising out of this Note or the Agreement shall be heard in the state or federal courts of Minnesota, and all parties to this Note and the Agreement waive any objection to the jurisdiction of these courts, whether based on convenience or otherwise. 7. The performance or observance of any promise or condition set forth in this Note may be waived, amended, or modified only by a writing signed by the Maker and the Holder. No delay in the exercise of any power, right, or remedy operates as a waiver thereof, nor shall any single or partial exercise of any other power, right, or remedy. IT IS HEREBY CERTIFIED AND RECITED that all conditions, acts, and things required to exist, happen, and be performed precedent to or in the issuance of this Note do exist, have happened, and have been performed in regular and due form as required by law. EDA Meeting of December 20, 2010 (Item No. 7b) Subject: Development Contract with M & L Properties (Hardcoat Inc.)Page 46 320881v1 MNI MN190-131 5 IN WITNESS WHEREOF, the Maker has caused this Note to be duly executed as of the ________ day of ______________, 20__. M & L PROPERTIES, LLC By: ______________________________________ Its _________________________________ [SIGNATURE PAGE FOR PROMISSORY NOTE] EDA Meeting of December 20, 2010 (Item No. 7b) Subject: Development Contract with M & L Properties (Hardcoat Inc.)Page 47 320881v1 MNI MN190-131 6 Exhibit B to CAP Loan Resolution FORM OF MORTGAGE Mortgage Registration Tax: $____________ The maximum principal indebtedness secured by this mortgage is $___________.00. MORTGAGE THIS MORTGAGE is given on _________, 20__. Borrower is M & L Properties, LLC, a Minnesota limited liability company (“Borrower”). This Mortgage is given to the St. Louis Park Economic Development Authority, a public body corporate and politic (the “Authority”). Borrower owes the Authority the principal sum of $_________.00. This debt is evidenced by a promissory note of even date herewith (the “Note”). This Mortgage secures to Authority: (a) the repayment of the debt evidenced by the Note, and all renewals, extensions and modifications of the Note; (b) the payment of all other sums, advanced to protect the security of this Mortgage; (c) the performance of Borrower’s covenants and agreements under this Mortgage and the Note; and (d) is subject to the terms and conditions of that certain Contract for Private Development between the Authority and the Borrower dated as of _________, 2010 (the “Agreement”). For this purpose, Borrower does hereby mortgage, grant and convey to the Authority, with power of sale, the property located in Hennepin County, Minnesota and fully described in the attached Exhibit A, together with all the improvements now or hereafter erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Mortgage. All of the foregoing is referred to in this Mortgage as the “Property.” BORROWER COVENANTS that Borrower is lawfully seized of the estate hereby conveyed and has the right to mortgage, grant, and convey the Property and that the Property is unencumbered, except for encumbrances of record and as set forth in paragraph 17. Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to any encumbrances of record. Borrower and the Authority agree as follows: 1. PAYMENT OF PRINCIPAL; LATE CHARGES. Borrower shall promptly pay when due the principal on the debt evidenced by the Note and any late charges due under the Note. 2. CHARGES; LIENS. Borrower shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property which may attain priority over this Mortgage, and leasehold payments or ground rents, if any. Borrower shall pay these obligations on time directly to the person owed payment. EDA Meeting of December 20, 2010 (Item No. 7b) Subject: Development Contract with M & L Properties (Hardcoat Inc.)Page 48 320881v1 MNI MN190-131 7 Subject to the provisions of paragraph 17, Borrower shall promptly discharge any lien which has priority over this Mortgage unless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a manner reasonably acceptable to the Authority; (b) contests in good faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Authority’s opinion operate to prevent the enforcement of the lien; or (c) secures from the holder of the lien an agreement satisfactory to the Authority subordinating the lien to this Mortgage. If the Authority determines that any part of the Property is subject to a lien which may attain priority over this Mortgage, the Authority may give Borrower a notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within thirty (30) days of the giving of notice. 3. HAZARD OR PROPERTY INSURANCE. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire and any other hazards for which the Authority requires insurance. This insurance shall be maintained in the amounts and for the periods that the Authority reasonably requires. The insurance carrier providing the insurance shall be chosen by Borrower subject to the Authority’s approval, which shall not be unreasonably withheld or delayed. If Borrower fails to maintain coverage described above, the Authority may, at the Authority’s option, obtain coverage to protect the Authority’s rights in the Property in accordance with paragraph 5. All insurance policies and renewals shall be reasonably acceptable to the Authority and shall include a standard mortgage clause. If the Authority requires, Borrower shall promptly give to the Authority all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance carrier and the Authority. The Authority may make proof of loss if not made promptly by Borrower. If under paragraph 15 the Property is acquired by the Authority, Borrower’s right to any insurance policies and proceeds resulting from damage to the Property prior to the acquisition shall pass to the Authority to the extent of the sums secured by this Mortgage immediately prior to the acquisition. 4. PROTECTION OF THE PROPERTY. Borrower shall not destroy or damage the Property or commit waste on the Property. Borrower shall be in default if any forfeiture action or proceeding, whether civil or criminal, is begun that in the Authority’s good faith judgment could result in forfeiture of the Property or otherwise materially impair the lien created by this Mortgage or the Authority’s security interest. Borrower may cure such a default and reinstate, as provided in paragraph 13, by causing the action or proceeding to be dismissed with a ruling that, in the Authority’s good faith determination, precludes forfeiture of Borrower’s interest in the Property or other material impairment of the lien created by this Mortgage or the Authority’s security interest. Borrower shall also be in default if Borrower gave materially false or inaccurate information or statements to the Authority in connection with the loan evidenced by the Note. 5. PROTECTION OF AUTHORITY’S RIGHTS IN THE PROPERTY. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or there is a legal proceeding that may significantly affect the Authority’s rights in the Property (such as a EDA Meeting of December 20, 2010 (Item No. 7b) Subject: Development Contract with M & L Properties (Hardcoat Inc.)Page 49 320881v1 MNI MN190-131 8 proceeding in bankruptcy, condemnation or forfeiture), the Authority may do and pay for whatever is necessary to protect the value of the Property and the Authority’s rights in the Property. The Authority’s actions may include paying any sums secured by a lien which has priority over this Mortgage, appearing in court, paying reasonable attorneys fees and entering on the Property to make repairs. Although the Authority may take action under this paragraph 5, the Authority is not required to do so. Any amounts disbursed by the Authority under this paragraph 5 shall become additional debt of Borrower secured by this Mortgage. Unless Borrower and the Authority agree to other terms of payment, these amounts shall bear interest from the date of disbursement at a rate equal to the interest rate on the Note and shall be payable, with interest, upon notice from the Authority to Borrower requesting payment. 6. INSPECTION. The Authority or its agent may make reasonable entries upon and inspections of the Property. 7. CONDEMNATION. The proceeds of any award or claim for damages, direct or consequential, in connection with any condemnation or other taking of any part of the Property, or for conveyance in lieu of condemnation, are hereby assigned and shall be paid to the Authority. In the event of a total taking of the Property, the proceeds shall be applied to the sums secured by this Mortgage, whether or not then due, with any excess paid to Borrower. In the event of a partial taking of the Property in which the fair market value of the Property immediately before the taking is equal to or greater than the amount of the sums secured by this Mortgage immediately before the taking, unless Borrower and the Authority otherwise agree in writing, if any, the sums secured by this Mortgage shall be reduced by the amount of the proceeds multiplied by the following fraction: (a) the total amount of the sums secured immediately before the taking, divided by (b) the fair market value of the Property immediately before the taking. Any balance shall be paid to Borrower. In the event of a partial taking of the Property in which the fair market value of the Property immediately before the taking is less than the amount of the sums secured immediately before the taking, unless Borrower and the Authority otherwise agree in writing or unless applicable law otherwise provides, the proceeds shall be applied to the sums secured by this Mortgage whether or not the sums are then due. The Authority acknowledges this Mortgage is subordinate to the liens specifically referred to in Section 17 hereof. 8. FORBEARANCE BY AUTHORITY NOT A WAIVER. Any forbearance by the Authority in exercising any right or remedy shall not be a waiver of or preclude the exercise of any right or remedy. 9. SUCCESSORS AND ASSIGNS BOUND. The covenants and agreements of this Mortgage shall bind and benefit the successors and assigns of the Authority and Borrower. 10. LOAN CHARGES. If the loan secured by this Mortgage is or becomes subject to EDA Meeting of December 20, 2010 (Item No. 7b) Subject: Development Contract with M & L Properties (Hardcoat Inc.)Page 50 320881v1 MNI MN190-131 9 a law which sets maximum loan charges, and that law is finally interpreted so that the interest or other loan charges collected or to be collected in connection with the loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; and (b) any sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower. The Authority may choose to make this refund by reducing the principal owed under the Note or by making a direct payment to Borrower. If a refund reduces principal, the reduction will be treated as a partial prepayment under the Note. 11. NOTICES. Any notice to Borrower provided for in this Mortgage shall be given by delivering it personally or by mailing it by first class United States mail, postage prepaid, return receipt requested. The notice shall be directed to Borrower at 7300 West Lake Street, St. Louis Park, Minnesota 55416, or any other address Borrower designates by notice to the Authority. Any notice to the Authority shall be given or mailed to City Hall, 5005 Minnetonka Avenue, St. Louis Park, Minnesota 55416, Attention: Executive Director, or any other address the Authority designates by notice to Borrower. Any notice provided for in this Mortgage shall be deemed to have been given to Borrower or the Authority when given as provided in this paragraph. 12. GOVERNING LAW; SEVERABILITY. This Mortgage shall be governed by the law of the state of Minnesota. In the event that any provision or clause of this Mortgage, the Agreement, or the Note conflicts with applicable law, such conflict shall not affect other provisions of this Mortgage, the Agreement, or the Note which can be given effect without the conflicting provision. To this end, the provisions of this Mortgage, the Agreement, and the Note are declared to be severable. 13. BORROWER’S RIGHT TO REINSTATE. If Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Mortgage discontinued at any time prior to the earlier of: (a) five (5 )days before sale of the Property pursuant to any power of sale contained in this Mortgage; or (b) entry of a judgment enforcing this Mortgage. Those conditions are that Borrower: (a) pays the Authority all sums which then would be due under this Mortgage, the Agreement and the Note as if no acceleration had occurred; (b) cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing this Mortgage, including, but not limited to, reasonable attorneys fees; and (d) takes such action as the Authority may reasonably require to assure that the lien of this Mortgage, the Authority’s rights in the Property and Borrower’s obligation to pay the sums secured by this Mortgage shall continue unchanged. Upon reinstatement by Borrower, this Mortgage and the obligations secured hereby shall remain fully effective as if no acceleration had occurred. 14. HAZARDOUS SUBSTANCES. Borrower shall not cause or permit the presence, use, disposal, storage, or release of any hazardous substances on or in the Property, except those solvents, oils, cleaning materials, and other substances as are used in the ordinary course of Borrower’s business. Borrower shall not do, and will use its best efforts not to allow anyone else to do, anything affecting the Property that is in violation of any environmental law. EDA Meeting of December 20, 2010 (Item No. 7b) Subject: Development Contract with M & L Properties (Hardcoat Inc.)Page 51 320881v1 MNI MN190-131 10 Borrower shall promptly give the Authority written notice of any investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency or private party involving the Property and any hazardous substance or environmental law of which Borrower has actual knowledge. If Borrower learns, or is notified by any governmental or regulatory EDA, that any removal or other remediation of any hazardous substance affecting the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with that environmental law. As used in this paragraph 14, “hazardous substances” are those substances defined as toxic or hazardous substances by environmental law and the following substances: gasoline, kerosene, other flammable or toxic petroleum products, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials. As used in this paragraph 14, “environmental law” means federal or state laws that relate to environmental protection. 15. ACCELERATION; REMEDIES. The Authority shall give notice to Borrower prior to acceleration following Borrower’s breach of any covenant or agreement in this Mortgage (“Event of Default”). The notice shall specify: (a) the default; (b) the action required to cure the default; (c) a date, not less than thirty (30) days from the date the notice is given to Borrower by which the default must be cured, provided, however, if Borrower is diligently pursuing a cure, Borrower shall have such additional time as is reasonably necessary to complete the cure; and (d) that failure to cure the default on or before the date specified in the notice may result in acceleration of the sums secured by this Mortgage and sale of the Property. The notice shall further inform Borrower of the right to reinstate after acceleration and sale. If the default is not cured on or before the date specified in the notice, the Authority at its option may require immediate payment in full of any sums secured by this Mortgage without further demand and may invoke the power of sale and any other remedies permitted by law. The Authority shall be entitled to collect all expenses incurred in pursuing the remedies provided in this paragraph 15, including, but not limited to, reasonable attorneys fees. If the Authority invokes the power of sale, the Authority shall cause a copy of a notice of sale to be served upon any person in possession of the Property. The Authority shall publish a notice of sale, and the Property shall be sold at public auction in the manner prescribed by law. The Authority or its designee may purchase the Property at any sale. The proceeds of the sale shall be applied in the following order: (a) to all expenses of the sale, including, but not limited to, reasonable attorneys fees; (b) to all sums secured by this Mortgage; and (c) any excess to the person or persons legally entitled to it. 16. RELEASE OF MORTGAGE. Upon payment or forgiveness of all sums secured by this Mortgage, the Authority shall discharge this Mortgage without charge to Borrower. Authority shall pay any recordation costs. 17. PRIOR LIENS. The Authority acknowledges this Mortgage is subordinate to the following previously recorded lien[s] on the Property: (a) [insert if necessary] EDA Meeting of December 20, 2010 (Item No. 7b) Subject: Development Contract with M & L Properties (Hardcoat Inc.)Page 52 320881v1 MNI MN190-131 11 (b) (The remainder of this page is intentionally left blank.) EDA Meeting of December 20, 2010 (Item No. 7b) Subject: Development Contract with M & L Properties (Hardcoat Inc.)Page 53 320881v1 MNI MN190-131 S-1 M & L PROPERTIES, LLC By: _____________________________________ Its: ______________________________________ STATE OF MINNESOTA ) ) SS. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this _____ day of __________, 20__ by ____________________, the _______________ of M & L Properties, LLC, a Minnesota limited liability company, on behalf of the company. Notary Public This document drafted by: KENNEDY & GRAVEN, CHARTERED (MNI) 200 South Sixth Street 470 U.S. Bank Plaza Minneapolis, MN 55402 (612) 337-9300 EDA Meeting of December 20, 2010 (Item No. 7b) Subject: Development Contract with M & L Properties (Hardcoat Inc.)Page 54 B-13 378184v2 MNI SA285-95 EXHIBIT A TO MORTGAGE LEGAL DESCRIPTION EDA Meeting of December 20, 2010 (Item No. 7b) Subject: Development Contract with M & L Properties (Hardcoat Inc.)Page 55 C-1 378184v2 MNI SA285-95 SCHEDULE C ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. ____ AUTHORIZING INTERFUND LOAN FOR ADVANCE OF CERTAIN COSTS IN CONNECTION WITH THE HARDCOAT TAX INCREMENT FINANCING DISTRICT BE IT RESOLVED By the Board Of Commissioners of the St. Louis Park Economic Development Authority (the “Authority”) as follows: Section 1. Background. 1.01. The Authority has established the Hardcoat Tax Increment Financing District (the “TIF District”) within Redevelopment Project No. 1 (the "Redevelopment Project") pursuant to Minnesota Statutes, Sections 469.174 to 469.1799 (the “TIF Act”) and Sections 469.001 to 469.047 (the “HRA Act”), as amended. 1.02. The Authority may incur certain costs related to the TIF District, which costs may be financed on a temporary basis from available Authority or City funds. 1.03. Under Section 469.178, Subdivision 7 of the TIF Act, the Authority is authorized to advance or loan money from any fund from which such advances may be legally made in order to finance expenditures that are eligible to be paid with tax increments under the TIF Act. 1.04. The Authority has previously established a Spending Plan (the “Spending Plan”) pursuant to Laws 2010, Chapter 216, Section 32 (the “Job Creation Act”), pursuant to which the Authority may provide funds from certain designated preexisting tax increment financing districts including the Victoria Ponds, Park Center Housing, CSM, Mill City, and Elmwood tax increment financing districts (the “Prior TIF Districts”) to assist private developers and increase the creation of jobs, and has approved its Construction Assistance Program (“CAP”) as a framework for such private assistance. 1.05. The Authority has entered into a Contract for Private Development dated as of December 20, 2010 (the “Agreement”) with M & L Properties, LLC (the “Developer”), under which the Authority will (among other things) provide a forgivable CAP loan to the Developer to assist with a portion of the costs of acquisition of the Development Property, in the principal amount of the lesser of $420,000 or 33% of the Construction Costs incurred (as such terms are defined in the Agreement). 1.06. By structuring the loan to the Developer as a forgivable loan, the Authority may forgo repayment of the loan. Such loan forgiveness represents an advance of Authority funds in EDA Meeting of December 20, 2010 (Item No. 7b) Subject: Development Contract with M & L Properties (Hardcoat Inc.)Page 56 C-2 378184v2 MNI SA285-95 the maximum amount of $420,000. 1.07. The Authority has also determined that it will advance the actual costs of consultants and attorneys retained by the Authority in connection with creation and administration of the TIF District and the negotiation and preparation of the Agreement and other incidental agreements and documents related to the development contemplated hereunder (the “Administrative Costs”), in an amount not to exceed $80,000. 1.07. The Authority intends to designate such advances as an interfund loan in accordance with the terms of this resolution and the TIF Act. Section 2. Repayment of Interfund Loan. 2.01. The Authority hereby authorizes the advance of up to $500,000 from the Spending Plan funds from the Prior TIF Districts to pay the CAP Loan advances and Administrative Costs as described in the Agreement, and will reimburse itself for such advances and Administrative Costs together with interest at the rate of 4.0% per annum (the “Interfund Loan”). Interest shall accrue on the principal amount of each advance from the date of such advance. The interest rate is no more than the greatest of the rate specified under Minnesota Statutes, Section 270.75 and Section 549.09, both in effect for calendar year 2010. The interest rate will not fluctuate. 2.02. Principal and interest ("Payments") on the Interfund Loan shall be paid semi- annually on each August 1 and February 1 (each a “Payment Date”), commencing on the first Payment Date on which the Authority has Available Tax Increment (defined below), or on any other dates determined by the City Manager, through the date of last receipt of tax increment from the TIF District. 2.03. Payments on the Interfund Loan will be made solely from Available Tax Increment, defined as 100% of the tax increment from the TIF District received by the Authority from Hennepin County in the six-month period before any Payment Date. Payments shall be applied first to accrued interest, and then to unpaid principal. Payments on this Interfund Loan may be subordinated to any outstanding or future bonds, notes or contracts secured in whole or in part with Available Tax Increment, and are on parity with any other outstanding or future interfund loans secured in whole or in part with Available Tax Increment. 2.04. The principal sum and all accrued interest payable under this resolution is pre- payable in whole or in part at any time by the Authority without premium or penalty. 2.05. This resolution is evidence of an internal borrowing by the Authority in accordance with Section 469.178, subdivision 7 of the TIF Act, and is a limited obligation payable solely from Available Tax Increment pledged to the payment hereof under this resolution. The Interfund Loan shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including, without limitation, the Authority and the City. Neither the State of Minnesota, nor any political subdivision thereof shall be obligated to pay the principal of or interest on the Interfund Loan or other costs incident hereto EDA Meeting of December 20, 2010 (Item No. 7b) Subject: Development Contract with M & L Properties (Hardcoat Inc.)Page 57 C-3 378184v2 MNI SA285-95 except out of Available Tax Increment. The Authority shall have no obligation to pay any principal amount of the Interfund Loan or accrued interest thereon, which may remain unpaid after the final Payment Date. 2.06. The Authority may at any time make a determination to forgive the outstanding principal amount and accrued interest on the Interfund Loan to the extent permissible under law. 2.07. The Authority may from time to time amend the terms of this Resolution to the extent permitted by law, including without limitation amendment to the payment schedule. Section 3. Effective Date. This resolution is effective upon execution in full of the Agreement. Reviewed for Administration: Adopted by the Economic Development Authority __________, 2010 Executive Director President Attest Secretary EDA Meeting of December 20, 2010 (Item No. 7b) Subject: Development Contract with M & L Properties (Hardcoat Inc.)Page 58 D-1 378184v2 MNI SA285-95 SCHEDULE D CERTIFICATE OF COMPLETION WHEREAS, the St. Louis Park Economic Development Authority (the “Authority”) and M & L Properties, LLC (the “Developer”) entered into a certain Contract for Private Development dated _________, 2010 (the “Agreement”), filed of record as Document No. _____________ on ___________, 2010; and WHEREAS, the Agreement contains certain covenants and restrictions set forth in Articles III and IV thereof related to completing certain Minimum Improvements; and WHEREAS, the Developer has performed said covenants and conditions insofar as it is able in a manner deemed sufficient by the Authority to permit the execution and recording of this certification; NOW, THEREFORE, this is to certify that all construction and other physical improvements related to the Minimum Improvements specified to be done and made by the Developer have been completed and the agreements and covenants in Articles III and IV of the Agreement have been performed by the Developer, and this Certificate is intended to be a conclusive determination of the satisfactory termination of the covenants and conditions of Articles III and IV of the Agreement related to completion of the Minimum Improvements, but any other covenants in the Agreement shall remain in full force and effect. Dated: _______________, 20__. ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY By Authority Representative EDA Meeting of December 20, 2010 (Item No. 7b) Subject: Development Contract with M & L Properties (Hardcoat Inc.)Page 59 D-2 378184v2 MNI SA285-95 STATE OF MINNESOTA ) ) SS. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this ____ day of _________, 20__ by ______________________, the __________________ of the St. Louis Park Economic Development Authority, on behalf of the Authority. Notary Public This document drafted by: Kennedy & Graven, Chartered 470 U.S. Bank Plaza Minneapolis, Minnesota 55402 EDA Meeting of December 20, 2010 (Item No. 7b) Subject: Development Contract with M & L Properties (Hardcoat Inc.)Page 60 E-1 378184v2 MNI SA285-95 SCHEDULE E SITE PLAN EDA Meeting of December 20, 2010 (Item No. 7b) Subject: Development Contract with M & L Properties (Hardcoat Inc.)Page 61 F-1 378184v2 MNI SA285-95 SCHEDULE F ASSESSMENT AGREEMENT ______________________________________________________________________________ ASSESSMENT AGREEMENT and ASSESSOR’S CERTIFICATION By and Between ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY and M & L PROPERTIES, LLC This Document was drafted by: KENNEDY & GRAVEN, Chartered 470 U.S. Bank Plaza Minneapolis, Minnesota 55402 EDA Meeting of December 20, 2010 (Item No. 7b) Subject: Development Contract with M & L Properties (Hardcoat Inc.)Page 62 F-2 378184v2 MNI SA285-95 ASSESSMENT AGREEMENT THIS AGREEMENT, made on or as of the ____ day of _________________, 20__ by and between the St. Louis Park Economic Development Authority, a public body, corporate and politic (the “Authority”) and M & L Properties, LLC, a Minnesota limited liability company (the “Developer”). WITNESSETH, that WHEREAS, on or before the date hereof the Authority and Developer have entered into a Contract for Private Development dated December __, 2010 (the “Development Agreement”), pursuant to which the Authority is to facilitate development of certain property in the Authority of St. Louis Park hereinafter referred to as the “Property” and legally described in Exhibit A hereto; and WHEREAS, pursuant to the Development Agreement the Developer is obligated to construct certain improvements (the “Minimum Improvements”) upon the Property; and WHEREAS, the Authority and Developer desire to establish a minimum market value for the Property and the Minimum Improvements to be constructed thereon, pursuant to Minnesota Statutes, Section 469.177, Subdivision 8; and WHEREAS, the Authority and the City Assessor (the “Assessor”) have reviewed the preliminary plans and specifications for the improvements and have inspected such improvements; NOW, THEREFORE, the parties to this Agreement, in consideration of the promises, covenants and agreements made by each to the other, do hereby agree as follows: 1. The minimum market value which shall be assessed for ad valorem tax purposes for the Property described in Exhibit A, together with the Minimum Improvements constructed thereon, shall be $2,425,000 as of January 2, 2012, notwithstanding the progress of construction by such date, and as of each January 2 thereafter until termination of this Agreement under Section 2 hereof. 2. The minimum market value herein established shall be of no further force and effect and this Agreement shall terminate on the date of receipt by the Authority of the final payment from Hennepin County of Tax Increments from the Hardcoat Village Tax Increment Financing District. 3. This Agreement shall be promptly recorded by the Authority. The Developer shall pay all costs of recording. EDA Meeting of December 20, 2010 (Item No. 7b) Subject: Development Contract with M & L Properties (Hardcoat Inc.)Page 63 F-3 378184v2 MNI SA285-95 4. Neither the preambles nor provisions of this Agreement are intended to, nor shall they be construed as, modifying the terms of the Development Agreement between the Authority and the Developer. 5. This Agreement shall inure to the benefit of and be binding upon the successors and assigns of the parties. 6. Each of the parties has authority to enter into this Agreement and to take all actions required of it, and has taken all actions necessary to authorize the execution and delivery of this Agreement. 7. In the event any provision of this Agreement shall be held invalid and unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof. 8. The parties hereto agree that they will, from time to time, execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered, such supplements, amendments and modifications hereto, and such further instruments as may reasonably be required for correcting any inadequate, or incorrect, or amended description of the Property or the Minimum Improvements or for carrying out the expressed intention of this Agreement, including, without limitation, any further instruments required to delete from the description of the Property such part or parts as may be included within a separate assessment agreement. 9. Except as provided in Section 8 of this Agreement, this Agreement may not be amended nor any of its terms modified except by a writing authorized and executed by all parties hereto. 10. This Agreement may be simultaneously executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. 11. This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota. EDA Meeting of December 20, 2010 (Item No. 7b) Subject: Development Contract with M & L Properties (Hardcoat Inc.)Page 64 F-4 378184v2 MNI SA285-95 ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY By Its President By Its Executive Director STATE OF MINNESOTA ) ) SS. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this ____ day of ________, 20__ by ____________________ and ___________________________, the President and Executive Director of the St. Louis Park Economic Development Authority, on behalf of the Authority. Notary Public EDA Meeting of December 20, 2010 (Item No. 7b) Subject: Development Contract with M & L Properties (Hardcoat Inc.)Page 65 F-5 378184v2 MNI SA285-95 M & L PROPERTIES, LLC By Its STATE OF MINNESOTA ) ) SS. COUNTY OF__________ ) The foregoing instrument was acknowledged before me this _____ day of _____________, 20__ by ____________________, the ____________________ of M & L Properties, LLC, a Minnesota limited liability company, on behalf of the company. Notary Public EDA Meeting of December 20, 2010 (Item No. 7b) Subject: Development Contract with M & L Properties (Hardcoat Inc.)Page 66 F-6 378184v2 MNI SA285-95 CERTIFICATION BY CITY ASSESSOR The undersigned, having reviewed the plans and specifications for the improvements to be constructed and the market value assigned to the land upon which the improvements are to be constructed, hereby certifies as follows: The undersigned Assessor, being legally responsible for the assessment of the above described property, hereby certifies that the values assigned to the land and improvements are reasonable. City Assessor for the City of St. Louis Park STATE OF MINNESOTA ) ) ss COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this ___ day of ____________, 2010 by _____________________, the City Assessor of the City of St. Louis Park. Notary Public EDA Meeting of December 20, 2010 (Item No. 7b) Subject: Development Contract with M & L Properties (Hardcoat Inc.)Page 67 F-7 378184v2 MNI SA285-95 EXHIBIT A of ASSESSMENT AGREEMENT Legal Description of Property EDA Meeting of December 20, 2010 (Item No. 7b) Subject: Development Contract with M & L Properties (Hardcoat Inc.)Page 68 Meeting Date: December 20, 2010 Agenda Item #: 7c Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: Special Meeting TITLE: 2011 Final HRA Levy Certification. RECOMMENDED ACTION: Motion to Adopt Resolution authorizing the proposed levy of a special benefit levy pursuant to Minnesota Statutes Section 469.033, Subdivision 6, and approval of the 2011 Final HRA Levy and Budget for fiscal year 2011. POLICY CONSIDERATION: Does the EDA desire to levy the maximum percentage allowable by law of 0.0185% of taxable market value collectible in 2011 for purposes of funding infrastructure improvements in redeveloping areas of the City? BACKGROUND: On September 7, 2010, the EDA adopted a Preliminary HRA Levy of $1,028,888. The purpose of this levy is to assist in funding future improvements to infrastructure in redeveloping areas. Some possible intended uses of these dollars are the City’s share of the grade separated crossing at Highway 7 and Louisiana, and the possible Highway 100 reconstruction. This levy also pays expenses for lobbying for State and Federal transportation funding. Although there is only $20,000 in capital expenditures budgeted for 2011, there is currently $3,410,542 in estimated capital expenditures for 2012. The City Council and EDA first adopted the HRA Levy for 2002. The maximum allowable HRA levy is based on a percentage of the previous year’s taxable market value in the City. For the 2011 levy, the percentage is 0.0185%. Based on the taxable market value of the City of $5,561,557,200, staff has calculated the maximum Final HRA Levy for 2011 to be $1,028,888. This is a $14,453 decrease, or approximately 1.39% from 2010 to 2011 in the potential maximum allowable HRA levy. The decrease is a result of a lower taxable market value in the City for 2011. As indicated in the resolution, the EDA is asked to authorize the HRA levy and then forward this recommendation to the City Council. Council action is required before certification. FINANCIAL OR BUDGET CONSIDERATION Given the significant infrastructure needs facing the City in the future, particularly related to transportation needs, it is recommended that the EDA adopt the resolution authorizing the proposed HRA levy. VISION CONSIDERATION: This levy supports St. Louis Park being a connected and engaged community through meeting the needs of current and future infrastructure needs. Attachments: Resolution 2011 HRA Levy Proposed Budget Prepared by: Steven Heintz, Finance Supervisor Reviewed by: Brian A. Swanson, Controller Approved by: Tom Harmening, EDA Executive Director and City Manager EDA Meeting of December 20, 2010 (Item No. 7c) Page 2 Subject: 2011 Final HRA Levy Certification ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY EDA RESOLUTION NO. 10-____ RESOLUTION AUTHORIZING THE HRA LEVY FOR 2011 AND APPROVAL OF THE EDA BUDGET FOR FISCAL YEAR 2011 WHEREAS, pursuant to Minnesota Statutes, Section 469.090 to 469.108 (the “EDA Act”), the City Council of the City of St. Louis Park created the St. Louis Park Economic Development Authority (the "Authority"); and WHEREAS, pursuant to the EDA Act, the City Council granted to the Authority all of the powers and duties of a housing and redevelopment authority under the provisions of the Minnesota Statutes, sections 469.001 to 469.047 (the "HRA Act"); and WHEREAS, Section 469.033, subdivision 6 of the Act authorizes the Authority to levy a tax upon all taxable property within the City to be expended for the purposes authorized by the HRA Act; and WHEREAS, such levy may be in an amount not to exceed 0.0185 percent of taxable market value of the City; and WHEREAS, the Authority has filed its budget for the special benefit levy in accordance with the budget procedures of the City; and WHEREAS, based upon this budget, the Authority will levy all or such portion of the authorized levy as it deems necessary and proper; NOW THEREFORE BE IT RESOLVED by the St. Louis Park Economic Development Authority: 1. The special benefit tax levy budget of $1,028,888 for the operations of the Authority in fiscal year 2011, as presented for consideration by the City Council, is hereby in all respects approved, by the Authority for certification of the tax levy under Minnesota Statutes, Section 275.07. 2. Staff of the Authority are hereby authorized and directed to file a budget with the City in accordance with Minnesota Statutes, Section 469.033, Subdivision 6. 3. The special benefit levy pursuant to Minnesota Statutes, Section 469.033, Subdivision 6, is hereby approved in a maximum amount equal to .0185 percent of taxable market value in City of St. Louis Park, 4. Staff of the Authority are hereby authorized and directed to seek the approval by resolution of the City Council of the levy of special benefit taxes in 2011. EDA Meeting of December 20, 2010 (Item No. 7c) Page 3 Subject: 2011 Final HRA Levy Certification Passed and duly adopted by the Board of Directors of the St. Louis Park Economic Development Authority this 20th day of December, 2010. Reviewed for Administration: Adopted by the Economic Development Authority December 20, 2010 Executive Director President Attest: Secretary EDA Meeting of December 20, 2010 (Item No. 7c) Page 4 Subject: 2011 Final HRA Levy Certification HRA Levy 2011 Budget December 20, 2010 2009 2010 2011 Actual Budget Proposed Budget Revenues: Property Tax Levy $989,407 $1,043,341 $1,028,888 Market Value Homestead Credit 30,856 0 27,000 Interest Income 99,690 100,000 100,000 Total Revenue $1,119,953 $1,143,341 $1,155,888 Expenditures: Infrastructure Projects $0 $1,647,771 $20,000 Legislative Lobbying Services 52,653 48,000 36,000 Travel & Meeting Expenses 0 4,500 0 Total Expenditures $52,653 $1,700,271 $56,000 Beginning Fund Balance $3,970,810 $5,038,110 $4,481,180 Net Change in Fund Balance $1,067,300 ($556,930) $1,099,888 Ending Fund Balance $5,038,110 $4,481,180 $5,581,068 Meeting Date: December 20, 2010 Agenda Item #: 7d Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Authorize Bank Signatories. RECOMMENDED ACTION: Motion to adopt resolution authorizing bank signatories for the EDA Checking Account. POLICY CONSIDERATIONS: Does the Economic Development Authority concur with the list of bank signatories for the Citizens Bank EDA Checking Account? BACKGROUND: The EDA has a checking account at Citizens Independent Bank in St. Louis Park. This account is used for all EDA vendor payments. Staff is in the process of updating bank signature cards and banking resolutions for all checking accounts. Based on new and more strict banking requirements, approval by resolution and copies of minutes are needed. The following signatories are recommended for the EDA account: EDA Checking Account Thomas Harmening* Executive Director Phil Finkelstein* EDA President Brian Swanson** Controller Steven Heintz** Finance Supervisor * Check signer as required by EDA Bylaws **Secondary authority Staff will request authorization from the Economic Development Authority at any point in time when a signer needs to be added or removed from this account via resolution to ensure inclusion in minutes to meet the new banking requirements. FINANCIAL OR BUDGET CONSIDERATION: The action recommended will ensure that the Economic Development Authority is compliant with banking and audit requirements by updating the bank signatory information for the bank account. VISION CONSIDERATION: Not applicable Attachments: Resolution Authorizing Bank Signatories Prepared by: Darla Monson, Senior Accountant Reviewed by: Brian Swanson, Controller Approved by: Tom Harmening, EDA Executive Director EDA Meeting of December 20, 2010 (Item 7d) Page 2 Subject: Authorize Bank Signatories ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY EDA RESOLUTION NO. 10-___ RESOLUTION AUTHORIZING BANK SIGNATORIES WHEREAS, the Economic Development Authority of St. Louis Park has an account at Citizens Independent Bank; and WHEREAS, it is necessary to update the current bank signatories; NOW, THEREFORE, BE IT RESOLVED, by the St. Louis Park Economic Development Authority: 1. Approval is hereby given to authorize the following bank signatories on the Citizens Independent Bank Economic Development Authority Checking Account. EDA Checking Account Thomas Harmening* Executive Director Phil Finkelstein* EDA President Brian Swanson** Controller Steven Heintz** Finance Supervisor *Check signer as required by EDA Bylaws **Secondary authority Reviewed for Administration: Adopted by the Economic Development Authority December 20, 2010 Executive Director President Attest: Secretary Meeting Date: December 20, 2010 Agenda Item #: 7e Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Interfund Loans. RECOMMENDED ACTION: Motion to Adopt Resolution authorizing interfund loans. POLICY CONSIDERATIONS: Interfund Loans Does the EDA concur with authorizing interfund loans from the Development Fund to certain tax increment districts? BACKGROUND: In the City’s Capital Improvement Plan, the Elmwood TIF District has been identified as a funding source for several street capital projects, including the Wooddale Avenue and Highway 7 Interchange and West 36th St. Streetscape. While the project costs have been incurred, there isn’t sufficient increment generated in the district to fund the City’s portion of the costs at this time. In order to provide a temporary funding source for the City’s obligation in these projects until additional increment is received, an interfund loan is necessary from the Development Fund to the Elmwood TIF District. Staff is recommending that an interfund loan resolution be adopted in the amount of $5 million from the Development Fund to the Elmwood TIF District. The Development Fund will have sufficient cash available to cover the project costs, and the loan will be repaid with 4% interest as tax increment is generated in the coming years. The Ellipse TIF District was created in 2009. New districts typically have expenses for consultant fees, public notice publication costs, and other administrative expenses that occur prior to the receipt of any increment. Staff is recommending that an interfund loan resolution be adopted in the amount of $10,000 from the Development Fund to the Ellipse TIF District. The Development Fund will have sufficient cash available to cover these administrative expenses, and the loan will be repaid with 4% interest as future tax increment is generated. Fund Potential Deficit Maximum Loan Elmwood TIF District $4,000,000 $5,000,000 Ellipse TIF District $ 5,000 $ 10,000 FINANCIAL OR BUDGET CONSIDERATION: The actions will provide for interfund loans until sufficient increment is generated to fund administrative expenses and capital improvement needs. This is an important and necessary action to be in compliance with audit requirements. EDA Meeting of December 20, 2010 (Item 7e) Page 2 Subject: Interfund Loans VISION CONSIDERATION: Not Applicable Attachments: Resolution Authorizing Interfund Loans Prepared by: Darla Monson, Senior Accountant Reviewed by: Brian Swanson, Controller Approved by: Tom Harmening, EDA Executive Director EDA Meeting of December 20, 2010 (Item 7e) Page 3 Subject: Interfund Loans ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY EDA RESOLUTION NO. 10-___ RESOLUTION AUTHORIZING INTERFUND LOANS WHEREAS, the Economic Development Authority of St. Louis Park has created various special purpose funds; and WHEREAS, some of those funds may at times run a short term deficit and require an interfund loan; NOW THEREFORE BE IT RESOLVED by the St. Louis Park Economic Development Authority: 1. The following interfund loans are approved from the Development Fund as needed: Fund Maximum Loan Elmwood TIF District $ 5,000,000 Ellipse TIF District $ 10,000 2. Such loans are to be repaid with 4% interest when sufficient resources are available. Reviewed for Administration: Adopted by the Economic Development Authority December 20, 2010 Executive Director President Attest: Secretary Meeting Date: December 20, 2010 Agenda Item #: 2a Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: James L. Brimeyer Resolution of Appreciation. RECOMMENDED ACTION: The Mayor is asked to read the attached Resolution and present a plaque to James L. Brimeyer to recognize his years of service to the City of St. Louis Park serving on the Southwest Transitway Policy Advisory Committee led by Hennepin County Regional Rail Authority. POLICY CONSIDERATION: None. BACKGROUND: Mr. Brimeyer will be in attendance for the presentation at the beginning of the meeting. The Mayor is asked to read the Resolution and present Mr. Brimeyer with a plaque in recognition of his years of service to the City of St. Louis Park. FINANCIAL OR BUDGET CONSIDERATION: None. VISION CONSIDERATION: St. Louis Park is committed to being a connected and engaged community. Attachments: Resolution Prepared by: Meg McMonigal, Planning and Zoning Supervisor Approved by: Tom Harmening, City Manager City Council Meeting of December 20, 2010 (Item No. 2a) Page 2 Subject: James L. Brimeyer Resolution of Appreciation RESOLUTION NO. 10-____ RESOLUTION RECOGNIZING JAMES L. BRIMEYER FOR SERVICE TO THE CITY OF ST. LOUIS PARK ON THE SOUTHWEST TRANSITWAY POLICY ADVISORY COMMITTEE WHEREAS, James L. Brimeyer served on the Southwest Transitway Policy Advisory Committee (PAC) representing the City of St. Louis Park over a several year period; and WHEREAS, Mr. Brimeyer engaged thoughtfully on policy-making relating to regional transit studies and decisions in relation to the City of St. Louis Park; and WHEREAS, Mr. Brimeyer continually advised the City Council and citizens on issues and decisions; and WHEREAS, Mr. Brimeyer successfully represented the best interests of the City of St. Louis Park and its citizens in planning for light rail transit service for the community. NOW THEREFORE BE IT RESOLVED that the City Council of the City of St. Louis Park, Minnesota by this Resolution and public record, would like to recognize James L. Brimeyer for his great contributions and years of service to the City of St. Louis Park serving on the Southwest Transitway Policy Advisory Committee. Reviewed for Administration: Adopted by the City Council December 20, 2010 City Manager Mayor Attest: City Clerk Meeting Date: December 20, 2010 Agenda Item #: 3a UNOFFICIAL MINUTES CITY COUNCIL STUDY SESSION ST. LOUIS PARK, MINNESOTA NOVEMBER 22, 2010 The meeting convened at 6:30 p.m. Councilmembers present: Mayor Pro Tem Susan Sanger, Phil Finkelstein, Anne Mavity (arrived at 6:41 p.m.), Julia Ross, and Sue Santa. Councilmembers absent: Mayor Jeff Jacobs and Councilmember Paul Omodt. Staff present: City Manager (Mr. Harmening), Deputy City Manager/Human Resources Director (Ms. Gohman), Controller (Mr. Swanson), Finance Supervisor (Mr. Heintz), Community Development Director (Mr. Locke), Economic Development Coordinator (Mr. Hunt), Planning/Zoning Supervisor (Ms. McMonigal), Communications Coordinator (Mr. Zwilling), City Assessor (Mr. Bultema), and Recording Secretary (Ms. Hughes). Guest: Curt Rahman (CKJ Properties, LLC), Jeff Miller (Hoisington Koegler Group Inc.), and Kim Justesen (Eliot Site Reuse Study Task Force representative). 1. Future Study Session Agenda Planning – November 29 and December 13, 2010 Mr. Harmening presented the proposed special study session agenda for November 29th, noting that this will be a joint City Council/School Board meeting to discuss the freight rail matter. He indicated that because a large crowd is expected for this meeting, the lobby, community room, and Westwood room will be available so that people can watch the meeting on the television monitors; the meeting will also be broadcast live on cable TV. Councilmember Finkelstein suggested that a notice be placed on the local access channel informing residents that parking and space are limited and that the meeting will be televised live on cable. He also suggested that the notice explain that this is a joint City Council/School Board meeting for the purpose of reviewing the two freight rail reports from the County and there will be limited time for community input at this meeting and there will be time for input later. Mr. Harmening also presented the proposed study session agenda for December 13th. 2. Construction Assistance Program (CAP) Application – CKJ Properties, LLC (Former Bikemasters Building) Mr. Hunt presented the staff report and advised that the EDA has received a request for CAP assistance from CKJ Properties, LLC to assist in the renovation of the former Bikemasters property located at 3540 Dakota Avenue South. He stated that in September of this year, Mr. Curt Rahman purchased the property with the intent of renovating and re-leasing the property as he has done with a number of other properties in the City. He indicated that the building is in substantial disrepair and Mr. Rahman intends to replace the windows, doors, flooring, ceilings, electrical, plumbing, and HVAC equipment. He noted that this property is in an important redevelopment area of the City and Mr. Rahman plans to spend approximately $210,000 in renovations and is requesting $70,000, or one-third of the amount of renovation, to replace the inefficient HVAC systems in the building. He indicated the property is currently valued at City Council Meeting of December 20, 2010 (Item 3a) Page 2 Subject: Study Session Minutes of November 22, 2010 $725,000 and upon renovation it could be assessed for $1.2 to $1.3 million by 2012. He explained that the structure of the CAP program is similar to other projects, whereby the EDA will reimburse qualified construction costs upon proof that were costs incurred and will be structured as a forgivable loan provided Mr. Rahman holds the property for five years, at which point the entire loan would be forgiven. He then introduced Mr. Rahman. Mr. Rahman provided a history of CKJ Properties, LLC and stated he purchased the former Bikemasters property after it went into foreclosure and believes the building can be rented to a number of different tenants because of the multiple entrances. He stated that the building is currently vacant and he plans to spend the next several months fixing up the building, including replacement of the eight HVAC units. He indicated he has already completed the landscaping on the back of the building, as well as removal of all the garbage, replacement of half of the glass in the building, and replacement of the security lighting and rusted doors. Councilmember Finkelstein stated that he will not be voting on this item because he suggested to Mr. Rahman that he apply for the CAP assistance. He stated that Mr. Rahman is a small property owner and this request represents exactly the size and type of assistance the EDA has been eager to provide, i.e., to help small businesses. He asked Mr. Rahman if he has received any inquiries about leasing. Mr. Rahman replied that he has placed some signs on the highway and spoke with someone that day who is interested in the building. He added he felt that this property would be a good location for a snowboard/bike shop. Councilmember Mavity stated this request is exactly the type of assistance the CAP program was designed for. Mayor Pro Tem Sanger asked if the City would be reaching an agreement in advance with Mr. Rahman on the minimum assessed valuation of the property after the repairs are completed. Mr. Hunt stated that proposed projects under the CAP program are reviewed on a case by case basis. In this case, it was thought that the City would not establish a minimum assessed valuation of the property prior to providing the financial assistance. He indicated that this property has gone through a tax court petition and upon renovation, the assessed value will increase substantially. He stated minimum property assessments are typically put in place when a TIF district is created. He added that in the case of Hardcoat, a minimum property assessment will be included in the Development Contract because the City would be establishing a TIF District. In this case, because of the size of the project, no TIF District is being established so no so minimum property assessment will be necessary. It was the consensus of the City Council to provide up to $70,000 in financial assistance through the EDA’s Construction Assistance Program to assist in the renovation of the former Bikemasters building. Mr. Hunt advised that a development contract will be presented for Council review in early January. City Council Meeting of December 20, 2010 (Item 3a) Page 3 Subject: Study Session Minutes of November 22, 2010 3. Eliot School Draft Design Guidelines Ms. McMonigal presented the staff report and introduced Mr. Jeff Miller, consultant with Hoisington Koegler Group and Mr. Kim Justesen, Eliot Site Reuse Study Task Force representative. She discussed the community process undertaken to date and stated the intent was to define the use parameters prior to sale of the property and to gain consensus on general redevelopment items. She then presented the draft guidelines prepared following the task force meetings which took place over the summer. Mr. Justesen expressed his thanks to Ms. McMonigal for allowing him to address the Council regarding the Eliot Site Reuse Study Task Force and stated that when this process began, there was a fair amount of skepticism about what would happen with the site. He indicated that people just wanted to be heard and he expressed his appreciation to City staff, Mr. Miller and his colleagues, and the School Board, for their willingness to sit back and let the neighborhood have its say. He stated that there were a number of residents who were concerned about what would happen to the neighborhood, but it became clear that resident’s fears of not being listened to were unfounded and that their ideas were in fact being considered. He stated that residents soon recognized that economics play a big role and if too many constraints are placed on the School Board, the property will not sell; as a result, a consensus began to emerge as to what would be appropriate for the site in terms of design principles. He reiterated that the neighborhood is appreciative of the time they were allowed to present their ideas and to be heard. Mr. Miller explained that Vision St. Louis Park, St. Louis Park’s Livable Community Principles, and the City’s Comprehensive Plan served as a framework in preparing the design guidelines, and any future development proposal will likely result in the need for a Comprehensive Plan land use map change from “Civic” to “Medium Density Residential.” He reviewed the site reuse principles, which includes a mix of medium density residential land uses, with concentration of taller and higher density buildings on the southern half of the site toward Cedar Lake Road. He stated that the principles also stress the importance of complementing the existing scale and character of the neighborhood, incorporating open space visible to the public, enhancing the triangular open space area along Cedar Lake Road, and encouraging owner-occupied housing. He also reviewed the site design guidelines which recommends a minimum of two types of residential land uses and encourages public access to open spaces. He stated that the task force felt strongly that any redevelopment should accommodate parking on the site rather than on- street parking. He explained the building design guidelines, which include recommendations on massing and placement, height, and frontage and articulation. He indicated the guidelines recommend building heights in the southern area of the site should be two to five stories, with a preference stated for lower building heights if possible; building heights in the northern area of the site should be two to three stories. Ms. McMonigal advised that a number of comments were received at the October 14th meeting regarding height and concerns regarding on-street parking; a petition was submitted by a task force member for no more than three stories across the entire site. She stated that residents have commented that they felt they were listened to, that they trusted the process, and that they appreciated that their comments at each meeting were reflected in the work of the consultants. She added that the neighborhood has requested an opportunity for additional input when any development proposal is brought forward. She advised that a meeting with the School Board is scheduled on December 13th and following any additional edits to the guidelines, the guidelines will be incorporated into the Comprehensive Plan. City Council Meeting of December 20, 2010 (Item 3a) Page 4 Subject: Study Session Minutes of November 22, 2010 Councilmember Ross expressed her appreciation to staff and the consultants for their thoughtful consideration of the neighborhood comments and concerns. She stated that the neighborhood remains very interested in being included throughout the redevelopment process and asked that the School Board and City staff continue to keep the neighborhood involved in the future use and redevelopment of the site. Councilmember Mavity expressed her support for the community process. She asked if there were any shadowing concerns for the redevelopment of the site. Ms. McMonigal advised that the current building does not shadow any adjacent uses and stated that any redevelopment proposal would be required to meet the City’s shadow ordinance. Councilmember Finkelstein complimented staff on the cooperative neighborhood process. He expressed concern that any single family homes built on the site will not fit the character of the area and overwhelm the neighborhood. Councilmember Santa also expressed her support for the community process and stated that the draft design guidelines represent a worthwhile result of the process. She indicated that she was in favor of a variety of different housing types, and liked the idea of having seniors and families living in close proximity to one another. Mr. Justesen explained that the single biggest issue worked on by the task force started with the idea of having only single family homes on the site; as time went on, it became clear that in order to attract redevelopment, a mixed use would be required. He indicated that the site itself is physically not large enough to sustain a large five-story complex and the task force recommended a maximum of three stories. The City Council discussed future rezoning of the site as it relates to the design guidelines. It was the consensus of the City Council to accept the Eliot School Site Design Guidelines as developed and to incorporate the Site Design Guidelines into the neighborhood section of the Comprehensive Plan. 4. 2011 Budget and Utility Rates Mr. Harmening presented the staff report and advised that the Truth in Taxation notices were mailed last week; the notices reflected a levy increase up to 4.88%. He stated that Council will approval the final 2011 budget and property tax levy on December 20th. Mr. Swanson presented the proposed levy options for 2011 and 2012 as previously discussed by Council. He then presented a sample illustration of the impact of a 4.88% levy on a median value home in St. Louis Park of $234,100 for 2010 and $223,400 for 2011, including water, sewer, storm drainage, solid waste, and franchise fee increases; the estimated change from 2010 to 2011 is $150.40 per year. He also presented a sample illustration of the impact of a 4.88% levy on a home valued at $500,000; the estimated change using the same assumptions for utilities and franchise fee increases equates to an increase of $252.54 per year. He presented further sample illustrations of the impact of a 4.0% levy as well as a 2.95% levy. He noted that the City’s property values are holding steady, but the City will see some of the tax burden shifting to St. Louis Park residents due to the fiscal disparities pool. City Council Meeting of December 20, 2010 (Item 3a) Page 5 Subject: Study Session Minutes of November 22, 2010 Councilmember Mavity stated that her inclination is to hold the levy at 4.0% in order to keep the levy at a more even rate in 2011 and 2012. Mr. Swanson stated that if the preliminary levy were reduced to 4.0%, there would be challenges in the Park Improvement Fund projected out in 2020, resulting in a higher levy needed in 2012. Mayor Pro Tem Sanger expressed concern that the City may face additional budget challenges particularly given the recent changes in the legislature. She stated that the State will likely be forced to make additional cuts, resulting in cities having to take on more services that the State currently provides, e.g., cities may have to do their own prosecutions and administrative hearings. She indicated she was supportive of retaining a 4.88% levy for 2011, and added that the impact to taxpayers between 4.88% and 4.0% is minimal. Mr. Harmening advised that staff has been preparing year-end projections for 2010 and those projections show the City ending the year in the black, which results in a healthy fund balance for the City. He stated that it may make sense to move some of this money into the City’s capital budget areas where it is needed versus maintaining the money in the general fund balance, which could be used to pay for the capital portion of the levy, thereby providing an option to lower the levy for 2011 and still allow the City to remain in the same financial position. He explained that the fire station bonds are driving the levy increase for 2012. He advised that there is a 1999 G.O. bond issue coming off in 2014 in the amount of $500,000 and he felt the City has some flexibility in its reserves to accelerate that bond issue coming off by two years or using reserve dollars to pay off the bond, which means the capital portion of the levy could be written down by half a million dollars. Councilmember Santa agreed that the difference between a 4.88% levy and a 4.0% levy is minimal. She stated she would prefer to bring more stability to the City’s finances across the board and was comfortable with the 4.88% levy. Councilmember Ross agreed with Councilmember Santa. Councilmember Mavity asked if this is the right time to look at the City’s overall budget in terms of staffing ratios, particularly in the Police Department. Ms. Gohman stated that staff will be reviewing staffing ratios with Council in 2011, including the possible addition of two police officers. Councilmember Finkelstein stated that there are a lot of people in the community on limited means and who are unemployed. He felt that the Council should give serious consideration to reducing the 2011 levy given the City Manager’s remarks regarding the City’s healthy fund balance and shifting some of the City’s reserves to the capital side of the budget. Mayor Pro Tem Sanger respectfully disagreed and reiterated that the difference between a 2.95% and 4.88% levy is small and the impact on any given person is minimal, while the impact on the City’s budget is significant. She stated that the City is not over-funded, there are a number of projects needing to be done and funds should be earmarked for those projects. She reiterated her concern about the uncertainty with the current legislature and stated this is not the time to take the City’s budget down to the bone when the City could get hit with additional expenses. City Council Meeting of December 20, 2010 (Item 3a) Page 6 Subject: Study Session Minutes of November 22, 2010 Councilmember Mavity stated that the City’s budget reflects the fact that the City is doing everything it can to act responsibly in the long term by putting other fee structures in place and investing and planning ahead to assure that a healthy infrastructure is in place for the future. She reiterated that her inclination would be to reduce the preliminary 4.88% levy because the City has enough of a strategy in place for the short term until it is determined what will happen at the State level. Mr. Harmening stated that the Truth in Taxation hearing on December 6th will present a budget using a 4.88% levy; following public comment, the Council will have an opportunity to further discuss the levy at its December 13th study session and formally adopt the budget on December 20th. Councilmember Ross requested information regarding the City’s communications to residents regarding the tax levy and budget. Mr. Harmening explained that communications have been sent to residents explaining the tax levy and budget; residents will also be receiving an insert in their Xcel Energy and CenterPoint bills regarding the franchise fee increase. He stated that additional communications could be prepared for the local access channel and/or a guest column in the newspaper. Mayor Pro Tem Sanger asked that the communication also address the difference between the City’s budget process that takes place in December and the valuation process that occurs in the spring. Councilmember Mavity asked that a summary explanation of the City’s budget be included. Councilmember Santa suggested including information about where tax dollars are spent. It was the consensus of the majority of the City Council to adopt a 4.88% property tax levy for 2011, with the understanding that the December 6th Truth in Taxation hearing will assume a 4.88% property tax levy. 5. 2010 City Manager Performance Evaluation Ms. Gohman presented the staff report. Councilmember Ross stated that she liked the process used in 2009 and was amenable to hiring J. Forrest again. Councilmember Finkelstein stated that he felt the process used in 2009 worked well and suggested that feedback be obtained not only from department heads but also from randomly selected employees or elected leadership from the unions. Ms. Gohman advised that the City recently completed a city-wide climate study that includes comments regarding the City Manager and Department Directors; this information will be presented to Council in the future. The Council agreed that a copy of the executive report of the climate study should also be provided to the Council for their review with this process. City Council Meeting of December 20, 2010 (Item 3a) Page 7 Subject: Study Session Minutes of November 22, 2010 It was the consensus of the City Council to retain the services of J. Forrest to facilitate the City Manager’s 2010 annual performance evaluation. 6. Communications/Meeting Check-in (Verbal) Council discussed the recent events in the City which resulted in negative publicity. Mr. Zwilling discussed how staff responds to media requests for information. He discussed Chief Luse’s press conference following the Lakeland Inn murder. He stated that requests for information following the Iowa murders were significant; however the city was limited in what it could release because the suspect is a juvenile. He also discussed the upcoming Channel 4 report following the recent dismissal of charges against a robbery suspect in Minneapolis, Richfield, and St. Louis Park in which the Judge criticized the cities on the line-up process used. He stated that inquiries regarding the ruling were directed to the County Attorney since the County Attorney prosecuted these cases. Mayor Pro Tem Sanger stated that she received several calls related to the Lakeland Inn murder because of its proximity to a robbery Friday night in the Fern Hill neighborhood and another robbery on Glenhurst about a month ago. She indicated that it appears some people are drawing the conclusion that the robberies occurred because of the Lakeland Inn and persons who visit the Inn are behind these robberies. She stated she received requests for information about police visits to the Lakeland Inn as well as arrest information. Mr. Zwilling stated that aggregate data has been compiled on the types of calls at this location and agreed to provide this data. Councilmember Santa stated that she received a comment asking about the City’s provisional license requirements and whether this applies to the Lakeland Inn. Mr. Harmening indicated that the City’s provisional license requirements will be reviewed with Chief Luse and Mr. Hoffman. The meeting adjourned at 9:21 p.m. Written Reports provided and documented for recording purposes only: 7. October 2010 Monthly Financial Report 8. Highway 7/Louisiana Avenue Project Update 9. Community Recreation Survey Update ______________________________________ ______________________________________ Nancy Stroth, City Clerk Susan Sanger, Mayor Pro Tem Meeting Date: December 20, 2010 Agenda Item #: 3b UNOFFICIAL MINUTES Joint City Council / School Board Meeting City of St. Louis Park Council Chambers 3rd Floor November 29, 2010 The meeting convened at 6:40 p.m. Council Members present: Mayor Jeff Jacobs, Sue Sanger, Anne Mavity, Sue Santa, Julia Ross, Phil Finkelstein, and Paul Omodt. School Board Members present: Board chair, Nancy Gores, Bruce Richardson, Jim Yarosh, Julie Sweitzer, Larry Shapiro, Rolf Peterson, and Pam Rykken. City Staff present: Tom Harmening, City Manager; Bridget Gothberg, Organizational Development Coordinator, Kevin Locke, Community Development Director, and Meg McMonigal, Planning/Zoning Supervisor. School District staff present: Dr. Debra Bowers, Superintendent and Lisa Greene, Community Education Director. Meeting The City Council and School Board discussed received the results of two freight rail studies done by consultants from Hennepin County. The studies were the Kenilworth Corridor: Analysis of Freight Rail/LRT Coexistence and TCWR Route Alternatives Study. Adjournment The meeting adjourned at 9:30 p.m. ______________________________________ ______________________________________ City Clerk Mayor Meeting Date: December 20, 2010 Agenda Item #: 3c UNOFFICIAL MINUTES CITY COUNCIL MEETING ST. LOUIS PARK, MINNESOTA DECEMBER 6, 2010 1. Call to Order Mayor Jacobs called the meeting to order at 7:35 p.m. Councilmembers present: Mayor Jeff Jacobs, Phil Finkelstein, Anne Mavity, Paul Omodt, Julia Ross, Susan Sanger, and Sue Santa. Councilmembers absent: None. Staff present: City Manager (Mr. Harmening), Deputy City Manager/Human Resources Director (Ms. Gohman), City Attorney (Mr. Scott), Community Development Director (Mr. Locke), City Assessor (Mr. Bultema), Planning/Zoning Supervisor (Ms. McMonigal), Director of Inspections (Mr. Hoffman), Planner (Mr. Fulton), Controller (Mr. Swanson), Finance Supervisor (Mr. Heintz), Housing Supervisor (Ms. Schnitker), and Recording Secretary (Ms. Hughes). Guests: Mark Ruff (Ehlers & Associates). 1a. Pledge of Allegiance 1b. Roll Call 2. Presentations - None 3. Approval of Minutes 3a. Study Session Minutes of October 25, 2010 The minutes were approved as presented. 3b. City Council Minutes of November 1, 2010 The minutes were approved as presented. 3c. Study Session Minutes of November 8, 2010 The minutes were approved as presented. 3d. Special Study Session Minutes of November 15, 2010 Councilmember Ross requested that an additional paragraph be added to page 2 that states “Councilmember Ross requested information regarding solar options as a form of energy for the fire stations.” The minutes were approved as amended. City Council Meeting of December 20, 2010 (Item 3c) Page 2 Subject: City Council Minutes of December 6, 2010 3e. City Council Minutes of November 15, 2020 Councilmember Ross requested that the third paragraph on page 4 be revised to add “Councilmember Sanger also asked if fiber optics were being considered for the development.” Councilmember Ross also requested that a paragraph be added that states “Councilmember Ross asked if this is the first project of this size for Eldridge.” The minutes were approved as amended. 4. Approval of Agenda and Items on Consent Calendar NOTE: The Consent Calendar lists those items of business which are considered to be routine and/or which need no discussion. Consent items are acted upon by one motion. If discussion is desired by either a Councilmember or a member of the audience, that item may be moved to an appropriate section of the regular agenda for discussion. 4a. Adopt Resolution No. 10-141 authorizing award of the 2011 St. Louis Park Arts and Culture Grants. 4b. Adopt Resolution No. 10-142 authorizing final payment in the amount of $24,015.13 for the 2009 MSA Street Improvement Project - Texas Avenue with Valley Paving, Inc., Project No. 2008-1101, City Contract No. 122-09. 4c. Adopt Resolution No. 10-143 authorizing final payment in the amount of $11,301.09 for the 2009 MSA Street Improvement Project – Alabama Avenue with Valley Paving, Inc., Project No.2009-1100, City Contract No. 72-09. 4d. Adopt Resolution No. 10-144 authorizing final payment in the amount of $13,146.99 for the 2010 City Sealcoat Project with Allied Blacktop Company - Project No. 2010-0001, City Contract No.110-10. 4e. Approve execution of a contract with Ostvig Tree, Inc. as the 2011 Boulevard Tree Pruning Contractor in an amount not to exceed $60,000. 4f. Adopt Resolution No. 10-145 establishing a special assessment for the installation of a fire suppression sprinkler system at 6500 West Lake Street, St. Louis Park, MN. 4g. Approve Amendment No.1 to Hennepin County Residential Recycling Grant Agreement, County Contract No. A081254, extending the current Agreement between Hennepin County and the City of St. Louis Park for one additional year. It was moved by Councilmember Mavity, seconded by Councilmember Sanger, to approve the Agenda and items listed on the Consent Calendar; and to waive reading of all resolutions and ordinances. The motion passed 7-0. 5. Boards and Commissions - None 6. Public Hearings 6a. 2011 Proposed Budget, Tax Levy and Truth in Taxation Public Hearing City Council Meeting of December 20, 2010 (Item 3c) Page 3 Subject: City Council Minutes of December 6, 2010 Mayor Jacobs stated that the 2011 proposed budget and tax levy will be presented this evening, along with the truth in taxation hearing, and Council will defer formal action on the budget and tax levy until December 20th. Mr. Harmening presented the staff report and indicated that Council directed staff to present a budget that holds the line and maintains the current level of services that exist today. He stated that Council also believes that investment in the City’s infrastructure is important; those systems are wearing out and Council has had a history of being proactive to make sure that those assets are well maintained and to make sure the City is reinvesting in infrastructure so that the City does not fall behind. He explained that the proposed levy increase is 4.88%, or approximately $1.1 million, with approximately $1 million going to the City’s infrastructure and the remainder to cover inflationary increases in expenses. Mr. Swanson explained that the Truth in Taxation public hearing is an effort to encourage more transparency between the City and its constituents. He presented information regarding the City’s budget process undertaken in 2010 and noted that final levy certification will occur on December 20th. He provided an overview of what items are included in the City’s budget and reviewed the 2010 adopted budget and 2011 preliminary budget. He stated that total General Fund and Park and Rec revenues and expenditures are approximately $29 million, with a .55% increase for 2011. He advised that intergovernmental revenue showed a significant reduction due to the recent termination of dispatch services with a neighboring community; however, the City’s investment in public safety remains consistent. He discussed the tax levy process and tax levy allocation, and stated the proposed levy will allocate approximately $900,000 to the Park Improvement Fund; this fund requires additional funding for capital needs. He stated that the City ranks 19th out of 46 for City residential property taxes in Hennepin County, and ranks 23rd out of 46 for overall residential property taxes in Hennepin County. Mayor Jacobs opened the public hearing. Ron Blitenthal, 2724 Kipling Ave., requested further information regarding how it is determined whether residential property taxes go up. He stated that his property value went down for the first time but his overall estimated taxes were going up 9.5-10% on a reduced assessment. Mr. Bultema stated that taxes are heavily related to what overall valuations are doing with respect to the rest of the community. He indicated that some of the housing stock was moving down in value while others have moved down at a greater pace. He noted that values of homes in the $200,000-$300,000 bracket have remained relatively stable. Mr. Harmening stated that properties that saw their taxes going down were primarily lower value properties within the City. He stated that for those properties with higher values and that have remained more stable in their values, their share of the property tax pie has grown larger. Mr. Blitenthal reiterated his concern that his property taxes went up almost 10% and encouraged Council to continue to try to keep tax increases relatively flat relative to inflation, particularly in this difficult economy. City Council Meeting of December 20, 2010 (Item 3c) Page 4 Subject: City Council Minutes of December 6, 2010 Councilmember Sanger noted that one reason many of the City’s homeowners are paying more in taxes has to do with the fact that the City’s housing stock has kept its value more compared to commercial properties, thus commercial properties are paying a smaller share of the City’s overall tax bill. Illson Johnson, 1319 Texas Avenue, expressed concern that their property taxes went up $300. She stated that they are on a fixed income and questioned how the City expects them to pay this. Mayor Jacobs stated that the Council remains sensitive to people who are on fixed incomes or who are currently unemployed. He noted that Council will continue its discussion regarding the 2011 budget and tax levy before taking action later this month. Mayor Jacobs closed the public hearing. Councilmember Finkelstein stated that the Council has had many long and difficult discussions regarding the 2011 budget and tax levy. He stated that the proposed 4.88% levy was based on information available to Council at the time and represents Council’s support for funding its capital needs, including the fire stations. He indicated that he felt the 4.88% levy was too high, in light of recent updated financial information and the City Manager indicated at a recent Council meeting that a 2.95% levy would take care of the City’s capital needs, would allow money to be put into the Park Fund, and the City would be okay for 2012. He acknowledged the importance of maintaining a healthy fund balance, but given the difficult economy, he felt the Council should seriously consider lowering the levy amount. 6b. Public Hearing – Louisiana Court Bond Refunding – General Obligation Bonds – Series 2010C Mr. Swanson presented the staff report and advised that the overall refinancing plan will result in an approximate $1.5 million reduction in the debt paid by the City and carried by Louisiana Court. He stated that the refunding will serve to improve the overall sustainability of the project and reduce the City’s financial exposure. Mayor Jacobs opened the public hearing. No speakers present. Mayor Jacobs closed the public hearing. 7. Requests, Petitions, and Communications from the Public – None 8. Resolutions, Ordinances, Motions and Discussion Items 8a. Authorize and Award Sale of Bonds for the General Obligation Bonds for Louisiana Court – Series 2010C and the Fire Stations – Series 2010D Resolution No. 10-146 and 10-147 Mr. Swanson presented the staff report and introduced Mark Ruff from Ehlers & Associates. City Council Meeting of December 20, 2010 (Item 3c) Page 5 Subject: City Council Minutes of December 6, 2010 Louisiana Court Series 2010C Mr. Ruff advised that the bond issue for Louisiana Court will refund the existing bonds and will significantly reduce Louisiana Court’s debt obligation. He stated that the interest rate on the old bonds was 5.75%; a competitive bond sale was held today and the winning bid was 5.2% submitted by Northland Securities. He explained that the dollar amount was revised to $1,770,000 to account for the larger debt service reserve. He added that the City’s AAA bond rating was also confirmed by Standard & Poor’s. Councilmember Finkelstein pointed out that only ten cities in the State have a “AAA” rating and this reflects the City’s fiscal strength. It was moved by Councilmember Ross, seconded by Councilmember Santa, to adopt Resolution No. 10-10-146 Awarding the Sale of General Obligation Refunding Bonds (Louisiana Court Project), Series 2010C, Proposed to be Issued in an Aggregate Principal Amount of $________; Fixing their Form and Specifications; Directing their Execution and Delivery and Providing for their Payment; Approving Related Agreements and Certificates. Councilmember Omodt expressed disappointment that there were no representatives present from Project for Pride in Living (PPL). He stated that PPL has disappointed the City in the past with its management practices and the City has agreed to a significant investment in this property. Councilmember Mavity acknowledged that this project has had trouble over the past ten years and was hopeful that PPL can provide safe, affordable housing for St. Louis Park residents. She stated that she was supportive of the bond refinancing and felt it would help keep this project stable into the future. Councilmember Sanger stated she would support this primarily because it will benefit both Louisiana Court and the City by lowering the interest rate and provide additional capital to make needed repairs to the property, and because this refunding will not cost the City anything and does not represent taxpayer money. She expressed concern that this is the third time that Louisiana Court has asked for City assistance whereas other apartment complexes in the City with rents in the same general range have not needed help and have much lower vacancy rates. Councilmember Finkelstein stated that this is a difficult situation but the overall refinancing plan is the fiscally prudent thing to do. Councilmember Ross agreed and stated that significant improvements are needed to this property and the property cannot be allowed to deteriorate further. The motion passed 7-0. Fire Stations – Series 2010D Mr. Ruff presented the sale report for the $13,025,000 taxable General Obligation Bonds and reported that six bids were received; the low bidder was Baird at 4.68%. He explained that these are taxable bonds which can only be used for new construction, and include a 35% rebate provided by the federal government. City Council Meeting of December 20, 2010 (Item 3c) Page 6 Subject: City Council Minutes of December 6, 2010 It was moved by Councilmember Ross, seconded by Councilmember Finkelstein, to adopt Resolution No. 10-147 Awarding the Sale of $________ Taxable General Obligation Bonds, Series 2010D (Build America Bonds – Direct Pay) Fixing their Form and Specifications; Directing their Execution and Delivery; and Providing for their Payment. Councilmember Ross stated that this is a wise use of taxpayer dollars and the fire stations are needed to ensure the continued safety of residents as well as the continued safety of the firefighters. The motion passed 7-0. 8b. Project for Pride in Living Louisiana Court Project (LC) Deferred Loan Resolution No. 10-148 Ms. Schnitker presented the staff report and stated that this deferred loan is part of the overall refinancing plan for the Louisiana Court project and will assist in funding a reduction in the debt and undertaking capital improvements at LC. She advised that the $500,000 loan will reduce the City’s overall financial risk and that by contributing $500,000, the City has been able to leverage an additional 1.55 million in funding from MHFA, Hennepin County and the Family Housing Fund. She indicated that the source of the funding for the City loan is the Park Center TIF District. The loan will have a fixed interest rate of 2% and payments will be deferred until the loan is due in 30 years or until the property is sold or refinancing occurs. She discussed the conditions of the deferred loan, including a requirement that PPL must participate in and endorse rehab improvements in the project. She noted that a joint housing agency committee will oversee and monitor the operation and management of the property and PPL must also commit to having a community space and on-site programming for residents. She added that the closing is scheduled for December 29th. It was moved by Councilmember Ross, seconded by Councilmember Santa, to adopt Resolution No. 10-148 Approving a Loan Agreement Between the City of St. Louis Park and PPL Louisiana Court Limited Partnership and Related Documents. Councilmember Sanger stated that she would not support this deferred loan and felt that the bond refinancing should be sufficient for PPL to make the needed capital improvements to the property. Councilmember Santa acknowledged Councilmember Sanger’s concerns and stated that the funding for the loan is from a TIF District designed for affordable housing and represents an allowable use of TIF District money. She added that this represents an appropriate use of TIF funds that is not diverting from other uses, e.g., general funds. Mr. Locke stated that this is correct and noted that no tax increment dollars can be used for general purposes and can only be used for affordable housing purposes. Councilmember Mavity stated that it has been Council’s desire to address this project and to make it successful by investing the amount of resources that it needs. She expressed her support for the refinancing plan and felt it would reduce the annual operating costs for the project. City Council Meeting of December 20, 2010 (Item 3c) Page 7 Subject: City Council Minutes of December 6, 2010 Councilmember Omodt stated that he would support the deferred loan but reiterated his disappointment that PPL representatives were not in attendance this evening. He indicated that the funds for this loan come from a TIF District designated for affordable housing and the City has chosen this property over all other properties and uses. The motion passed 6-1 (Councilmember Sanger opposed). 8c. Dairy Queen – Conditional Use Permit for In-Vehicle Service Mr. Fulton presented the staff report and stated the restaurant use is permitted in the C-2 Zoning District and a Conditional Use Permit (CUP) is required for drive-through service. He discussed the neighborhood meetings and public process to date. He summarized the traffic study and circulation analysis completed by SRF Consulting Group and stated the revised site plan includes the addition of a drive-through “hut.” He stated that the proposed use includes a vehicle stacking area within 100’ of a residential property, failing to meet a condition for a drive-through CUP. He added that the stacking area could potentially be moved to accommodate the 100’ residential setback requirement. He discussed traffic and pedestrian movement and stated that the proposed use does not qualify under the provisions governing shared parking in the zoning ordinance, adding it is not reasonable to conclude that the uses that would share parking have substantially different times of highest peak parking demand. He advised that the proposed in-vehicle sales/service is also inconsistent with the recently adopted Comprehensive Plan update, including provisions from the Minikahda Vista neighborhood plan. Councilmember Omodt questioned whether there were enough parking spaces available at the site. Mr. Fulton stated that the restaurant is 4,300 square feet with a requirement of one space per 60 square feet of restaurant. He added that the restaurant has 106 seats available in the restaurant itself and the shared parking agreement needs to follow the requirements found in the Ordinance. Mr. David Anderson, Frauenshuh Companies, appeared before the City Council and stated the property is one among four at Miracle Mile. He indicated that from a functional standpoint, there are 523 parking spaces in this development and based on overall utilization and capacity, you will find it functions at a 70% rate of use. Mr. Nick Spierdes, Spierdes Reiners Architects, appeared before the City Council and stated that the revisions to the site plan came from working through the concept process first and responding to comments and suggestions from staff, the Planning Commission, as well as the neighborhood. He indicated that the entire operation was able to be put on the site by allowing cars to stack on this property, splitting the two parking areas, and adding the drive-through hut. He stated that they believe the interface between the vehicles and the pedestrians currently exist on the site and improves the site to work in the safest manner possible. He added that consistent with the City’s plan, the sidewalk was added to the current sidewalk running along Excelsior Boulevard and the exit is right-out only, marked clearly with signage. Councilmember Ross expressed a safety concern with potential conflicts created by cars backing out of the parking spaces. City Council Meeting of December 20, 2010 (Item 3c) Page 8 Subject: City Council Minutes of December 6, 2010 Mr. Jim Benshoof, Benshoof and Associates, appeared before the City Council and stated that the traffic issues have been well addressed and they agree with the conclusions produced by the City’s traffic consultant. He stated the site produced satisfactory traffic operations subject to certain improvements and the plan includes the recommended improvements. He indicated that not only will the drive-through operation not cause a parking problem, but asserted that the parking situation will be better. He presented a chart with a summary of expected changes in parking availability which demonstrates that restaurants with drive-through operations have less parking demand; the summary shows a reduction in total parking demand using Institute of Traffic Engineer (ITE) projections is 11 and they determined that seven spaces will be lost if the drive-through is allowed. He added that they intend to also relocate employee parked vehicles, which results in a net increase in parking spaces available for businesses in the area without a drive-through is 10 and a 22 space reduction in parking demand. Mr. Bill Griffith, Larkin Hoffman, appeared before the City Council and presented a petition from customers and business owners in support of the proposed drive-through. He also presented a letter of support from Kimberley Young and requested that the petition and letter be placed into the official record. He stated it is important for the Council to keep in mind that if reasonable conditions can be attached to this project, it should be approved. He stated that if a reasonable declaration of easements can be arrived at, that is a reasonable condition to impose on the project. He expressed his appreciation to Council for allowing continuances of time that allowed them to make improvements to the proposed plan and address the concerns of the neighborhood. He stated that an additional meeting with the neighborhood was held last week during which the neighborhood was shown the refinements to the plan, including the restriction of hours of operation from 10:00 a.m. to 10:00 p.m.; it is proposed that this restriction be made a covenant that goes with the land and is associated with the Dairy Queen use. He indicated that the drive-through operation is important to the viability of this business and Dairy Queen believes that with reasonable conditions it can move forward. He discussed the issues with the site and noted that they are providing for eight cars in the stacking areas; six are required. He stated that the stacking area must be at least 100’ from a neighboring property line and with minimal adjustment, that condition can be attached. He stated that the City’s traffic consultant has indicated that the drive-through operation will have no impact on the level of service, and this was confirmed by Mr. Benshoof. He stated that they enhanced the site plan as recommended by SRF so as not to impede traffic in the area and to identify pedestrian crossings. He noted that by moving up the menu boards, traffic will be stopped to provide pedestrian movement in an appropriate location. He stated that the east driveway will be one way; in addition, as noted by both SRF and Mr. Benshoof, U-turns can safely be made at the locations indicated. He stated that access on the collector roadway has been addressed. He stated that with respect to the Comprehensive Plan, this is not a major redevelopment, this is a walkable use, and with the addition of the sidewalk into the use, it improves its walkability and pedestrian improvements will be added. He noted that with regard to the CUP requirements, all uses have been relocated onto the Dairy Queen parcel, the access to the drive-through window is provided by the shared parking arrangement, parking will comply with the Zoning Ordinance, and the proposed use will comply with the Ordinance when taking into account the site improvements. He added that it is their conclusion that this project can meet the City’s conditions and in order to ultimately make this a viable business in this location, it needs to have a drive-through. City Council Meeting of December 20, 2010 (Item 3c) Page 9 Subject: City Council Minutes of December 6, 2010 Ms. Rose Doherty, 4968 West 40th Street, appeared before the City Council and stated that in order to go west on Excelsior Boulevard, cars exiting the Dairy Queen will have to scramble to get into that left hand turn lane. She expressed concern that because of the limitation of space and ability to make that turn, cars will turn right on Quentin and use 40th to Wooddale in order to go west on Excelsior Boulevard. She questioned where the delivery trucks would park. She expressed concern about pedestrian safety and stated that the City has worked hard to promote a walkable community and this proposal does not promote a walkable community. She also expressed concern about the noise levels from the drive-through and the potential for increased litter in the area. She questioned whether the granting of a CUP for Dairy Queen would set a precedent and urged the Council to vote against this request. Ms. Lyn Wik, 3965 Quentin Avenue South, appeared before the City Council and stated she has no faith in anything offered by Dairy Queen in the way of private agreements or guarantees. She stated that there is nothing to say that Dairy Queen’s next business model won’t require extended hours or breakfast, for example. She asked how a private agreement would impact the City. She presented four photographs showing the parking area and menu boards from a Dairy Queen and McDonald’s, and stated that she objects to the idea that Dairy Queen will send its employees to park on the far southeastern corner of the lot. She stated that this proposal will open the door to additional traffic into the night causing light and noise pollution. She questioned the accuracy of the traffic study and the logic in the statement that a 33% increase in business from the drive-through operation will result in less parking space demand. She stated that there is nothing to protect the neighborhood from having another fast food business coming into the area if this CUP is granted. She stated that she recalled the Council making a statement in the past that there would be no fast food or drive-throughs on the south side of Excelsior Boulevard and encouraged Council to maintain the integrity of Excelsior Boulevard and keep its promises to the Minikahda Vista neighborhood. Howard Polski, 3920 Colorado Avenue South, appeared before the City Council and expressed his support for the drive-through. He stated that he felt denying the drive- through was discriminatory and the reduction in traffic makes sense. He stated that there is a McDonalds across the street and the drive-throughs do about 40% of the business for these types of restaurants. He indicated that the proposed drive-through hours seemed fair and he encouraged Council to do all it can to help businesses succeed, particularly in this difficult economy. He added that Frauenshuh has been a good corporate citizen in the community. Margaret Tiffany, 4972 West 40th Street, appeared before the City Council and stated that she has noticed an increase in traffic in the area, and this represents her biggest concern with this proposal. She indicated there are no sidewalks on 40th Street and there are a lot of people walking in this area. She stated she has seen vehicles making illegal left turn lanes to get into Miracle Mile and did not feel that a sign would deter vehicles from making illegal left turns. She added that it is not easy to get across Excelsior Boulevard to make the turn or a U-turn, and felt that people would turn onto Quentin or go through the Baja site. She stated that the earlier proposal by Wendy’s as well as the Dairy Queen proposal do not meet the City’s Comprehensive Plan requirements. She encouraged the Council to not allow this proposal. City Council Meeting of December 20, 2010 (Item 3c) Page 10 Subject: City Council Minutes of December 6, 2010 Councilmember Mavity stated that there seemed to be a disconnect with the statement that Dairy Queen needs the additional traffic in order to be profitable, while at the same time the traffic study indicates that this drive-through will not generate so much traffic as to create a problem in the Miracle Mile center or along Excelsior Boulevard. Mr. Benshoof responded by stating that it is anticipated that traffic entering the Dairy Queen site will be approximately 20-22 cars during peak business, which equates to one vehicle every three minutes. He stated the volume increase is small relative to the existing traffic on Excelsior Boulevard and will not cause a major impact. Councilmember Mavity stated that Dairy Queen has been a great community partner and the Frauenshuh family has done great things in the community. She stated that she appreciated Dairy Queen’s willingness and good faith efforts to address the concerns of the neighborhood, but there appear to be enough technical challenges that remain as well as issues with the overall vision laid out in the Comprehensive Plan with respect to walkability and envisioning for the future along Excelsior Boulevard that require her to vote against this as presented. Councilmember Sanger stated that the Wendy’s proposal was voted against not because it was not well thought out or that it would enhance the area. She expressed her concerns about the proposal’s non-conformance with parking and landscaping requirements and intensifying of the land use, which are contrary to the way in which the City’s operates. She stated that the traffic issues are also a concern for her. She stated that from a logic perspective, she could not understand how adding the drive-through will increase profits for the business and how the proposed model will not add more traffic to the site. She expressed concern that pedestrians will have to cross into the exit lane to get into the restaurant. She stated that the noise issue is also a concern and that noise is a difficult problem to enforce and she did not feel it was appropriate to have a drive-through so close to the neighborhood. She indicated that the City has put a lot of passion and energy into Excelsior Boulevard to make it a more walkable and desirable environment for residents and having a drive-through operation does not enhance the City’s vision. She stated that for these reasons, she will not be supporting the request. Councilmember Finkelstein stated that the proposal does not meet the City’s general CUP requirements, because it violates the principal goals of the City’s land use designations, the proposal will adversely impact Excelsior Boulevard as well as pedestrian traffic in the area, and there will be an adverse impact on the neighbors due to the proximity of noise and litter in the area. He agreed that Dairy Queen has been an extraordinary corporate citizen, but did not believe the proposal has been sufficiently revised to warrant the Council revisiting the proposal and would not be supporting the request. Councilmember Omodt requested guidance from the City Attorney regarding the private agreements and parking easements. Mr. Scott stated that the first priority is to have parking on the site and the City does allow in certain circumstances to have a shared parking agreement in order to meet the City’s parking requirements, as proposed here. He added that before considering shared parking, you first have to establish that the uses that want to share parking have different peak times and that is not the case here because they both have substantially the same peak times. He advised that shared parking would be allowed if it met the criteria contained in the Ordinance. He stated that a private agreement has been alluded to in the City Council Meeting of December 20, 2010 (Item 3c) Page 11 Subject: City Council Minutes of December 6, 2010 context that the condition only applies to the Dairy Queen and not to any other use. He explained that general law is that the CUP follows the land so there could be another use that came in and utilized the drive-through and that use would have to meet the same conditions. He indicated that the applicant is proposing that they would impose a private covenant with the City as the beneficiary that would restrict this covenant just to Dairy Queen and not follow the land, but there is no way the City can absolutely guarantee that if the CUP is approved for the Dairy Queen drive-through that three years from now you could not have some other entity wanting a CUP to utilize that drive-through. He stated that if that happened, the City would have no basis to turn down the new owner, even if a private covenant were in existence. Mr. Griffith clarified that the CUP application has not been revised and the documents contained in the Council agenda reflect the current proposal. He stated that the declaration of easements and covenants was presented in August and the applicant has indicated a willingness to further restrict and include the covenant as a condition of approval. He added that the site plan presented to Council this evening is the site plan dated October 5, 2010, which shows a 100’ setback. He noted that there is nothing in the Code requiring the setback to go to the curb line, but the consultant drew the 100’ setback. He advised that the only change suggested this evening is the addition of a pedestrian walkway over the drive aisle. Mr. Scott stated that it may be appropriate to make some minor changes to the resolution and suggested that the motion direct the City Attorney to revise the current resolution in light of the discussion tonight and to bring the resolution back to Council for final adoption at its next meeting. It was moved by Councilmember Mavity, seconded by Councilmember Sanger, to direct staff and the City Attorney to revise the current resolution denying a Conditional Use Permit application for in-vehicle sales and service for property located at 5001 Excelsior Boulevard, and to bring the revised resolution to the Council for final adoption at its next meeting. The motion passed 7-0. 9. Communications Mayor Jacobs expressed the Council’s thanks to the Community Foundation Board, to Phil Weber for donating his establishment, and to everyone involved in the event held last Saturday. Councilmember Santa encouraged residents to attend the public information meeting scheduled for Thursday, December 9th, from 5:30 p.m.-7:30 p.m. regarding Mn/DOT’s proposals for Highway 100 between Highway 7 and County Road 5. She stated the meeting will be held in the cafeteria of the high school. 10. Adjournment The meeting adjourned at 10:34 p.m. ______________________________________ ______________________________________ Nancy Stroth, City Clerk Jeff Jacobs, Mayor Meeting Date: December 20, 2010 Agenda Item #: 3d UNOFFICIAL MINUTES CITY COUNCIL SPECIAL STUDY SESSION ST. LOUIS PARK, MINNESOTA DECEMBER 6, 2010 The meeting convened at 7:00 p.m. Councilmembers present: Mayor Jeff Jacobs, Phil Finkelstein, Anne Mavity, Paul Omodt, Julia Ross, Susan Sanger, and Sue Santa. Councilmembers absent: None. Staff present: City Manager (Mr. Harmening), Deputy City Manager/Human Resources Director (Ms. Gohman), Economic Development Coordinator (Mr. Hunt), and Recording Secretary (Ms. Hughes). 1. Update on Convention and Visitors Bureau Mr. Harmening presented the staff report and indicated that the first reading of the Ordinance to create a convention and visitors bureau (CVB) was approved on November 1st, at which time a representative of the Doubletree Hotel expressed opposition to the implementation of a lodging tax. He stated that since that time, staff has been visiting with some of the local hoteliers to further understand any concerns. He presented information regarding 26 metro area communities that have adopted a lodging tax of at least 3% and indicated that staff and Bruce Nustad of the TwinWest Chamber of Commerce continue to believe that opportunities exist in the creation of a CVB. Councilmember Ross stated that she raised earlier concerns regarding the impact of a lodging tax on families. She suggested that the Council establish a period of time for trying the CVB, perhaps three years, and to revisit the model at the end of that time to see if it is effective. She added that this should be proposed to the local hoteliers. Councilmember Omodt agreed that a look-back provision should be put in place, but felt the time period should be five years in order to allow the CVB to put its programs in place. Councilmember Finkelstein stated that Council has been discussing the creation of a CVB for two years. He indicated that there has been no opposition by the hoteliers to the proposed lodging tax until the November 1st public hearing. He expressed frustration that the hoteliers have not voiced any opposition to the lodging tax at any of the meetings hosted by staff. Mr. Harmening advised that staff does not feel there is tremendous opposition among the hoteliers to the creation of a CVB. He stated that at a recent meeting, the hoteliers indicated they were not convinced there would be a return on the investment, but all the hoteliers indicated if the City chooses to do this, they were “all in” and expressed to staff that it would be to their advantage to make sure the CVB is successful. Councilmember Sanger requested further information about the manner in which the CVB will be evaluated to measure success. She pointed out that there are other non-hotel businesses in the City that stand to benefit from the CVB as well. City Council Meeting of December 20, 2010 (Item 3d) Page 2 Subject: Special Study Session Minutes of December 6, 2010 Mr. Harmening stated that the Council will ultimately retain control over the CVB pursuant to the Operating Agreement and this agreement contains a termination provision such that the City can terminate its relationship with the CVB and cease funding the CVB with the lodging tax. Councilmember Mavity stated that the previous CVB materials outlined several goals of the CVB including a goal that establishes a matrix for quantifying the success of the CVB. She added it should be Council’s responsibility every year to review this to determine if the CVB is successful. Mayor Jacobs stated that it appears it would be prudent to continue to work with the hoteliers over the next month or so to address their questions or concerns, and to discuss with the hoteliers the five year look-back provision being proposed by Council; following that, the ordinance should be placed on the Council’s agenda for second reading. It was the consensus of the City Council to direct staff to continue to work with the local hoteliers to further understand and address their questions and concerns, as well as to discuss the five year look-back provision. It was also the consensus of the City Council to proceed with adoption of the 2nd Reading of the ordinance. Councilmember Omodt agreed that staff should continue to work with the local hoteliers, but preferred to see the 2nd Reading take place sooner rather than later. Mr. Harmening stated that staff will put the second reading of the ordinance on the Council’s December 20th agenda. He noted that the January 1, 2011 effective date for the lodging tax may need to be pushed back to give the hoteliers time to implement the new lodging tax. Fiber Network Councilmember Mavity suggested that the League of Women Voters be asked to participate on the fiber optic study task force. She stated there appears to be unreasonably low participation by women on the task force. The meeting adjourned at 7:19 p.m. Written Reports provided and documented for recording purposes only: 2. Fiber Network and Policy Study Update 3. Demolition of 3764 Wooddale Avenue, 5718 Goodrich Avenue and 5724 Goodrich Avenue – Fire Station Project ______________________________________ ______________________________________ Nancy Stroth, City Clerk Jeff Jacobs, Mayor Meeting Date: December 20, 2010 Agenda Item #: 4a Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: James L. Brimeyer Resolution of Appreciation. RECOMMENDED ACTION: Motion to Adopt Resolution of appreciation to recognize James L. Brimeyer for serving on the Southwest Transitway Policy Advisory Committee led by Hennepin County Regional Rail Authority. POLICY CONSIDERATION: None. BACKGROUND: James L. Brimeyer served as the city’s representative on the Southwest Transitway Policy Advisory Committee (PAC) of the Hennepin County Regional Rail Authority (HCRRA) for several years. In this capacity, Mr. Brimeyer attended meetings, represented the city’s interests, engaged thoughtfully in studies and policy-making, kept the City Council advised on issues and decisions, and represented the best interests of the City of St. Louis Park and its citizens in planning for light rail transit service for the community. In May of 2010, the Southwest Transitway project was turned over from HCRRA to the Metropolitan Council and the PAC held its final meeting in May of 2010. This consent item will officially adopt the resolution that honors James L. Brimeyer for his years of service. FINANCIAL OR BUDGET CONSIDERATION: None. VISION CONSIDERATION: St. Louis Park is committed to being a connected and engaged community. Attachments: Resolution Prepared by: Meg McMonigal, Planning and Zoning Supervisor Approved by: Tom Harmening, City Manager City Council Meeting of December 20, 2010 (Item No. 4a) Page 2 Subject: James L. Brimeyer Resolution of Appreciation RESOLUTION NO. 10-____ RESOLUTION RECOGNIZING JAMES L. BRIMEYER FOR SERVICE TO THE CITY OF ST. LOUIS PARK ON THE SOUTHWEST TRANSITWAY POLICY ADVISORY COMMITTEE WHEREAS, James L. Brimeyer served on the Southwest Transitway Policy Advisory Committee (PAC) representing the City of St. Louis Park over a several year period; and WHEREAS, Mr. Brimeyer engaged thoughtfully on policy-making relating to regional transit studies and decisions in relation to the City of St. Louis Park; and WHEREAS, Mr. Brimeyer continually advised the City Council and citizens on issues and decisions; and WHEREAS, Mr. Brimeyer successfully represented the best interests of the City of St. Louis Park and its citizens in planning for light rail transit service for the community. NOW THEREFORE BE IT RESOLVED that the City Council of the City of St. Louis Park, Minnesota by this Resolution and public record, would like to recognize James L. Brimeyer for his great contributions and years of service to the City of St. Louis Park serving on the Southwest Transitway Policy Advisory Committee. Reviewed for Administration: Adopted by the City Council December 20, 2010 City Manager Mayor Attest: City Clerk Meeting Date: December 20, 2010 Agenda Item #: 4b Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Final Payment Resolution - Contract 75-10 Valley Paving, Inc. – Project No. 2009-1101. RECOMMENDED ACTION: Motion to Adopt Resolution authorizing final payment in the amount of $13,724.68 for the 2009 MSA Street Improvement Project - Wooddale Avenue with Valley Paving, Inc., Project No. 2009-1101 - City Contract No. 75-10. POLICY CONSIDERATION: Does the Council wish to approve the final payment? BACKGROUND: City Council approved undertaking the 2010 MSA Street Improvement Project, Project No. 2009-1101. The project was advertised, bid and awarded to Valley Paving, Inc on May 6, 2010 in the amount of $137,890.60. This project included asphalt pavement mill and overlay work on Wooddale Avenue from W. 44th Street to W. 42 ½ Street. The Contractor completed this work within the contract time allowed (30 days) at a final contract cost of $145,912.71, including one change order in the amount of +$1,840.00 plus miscellaneous quantity overruns amounting to $6,182.11. The majority of the cost overrun can be attributed to miscellaneous concrete replacements (sidewalk and curb and gutter) that exceeded initial estimates. FINANCIAL OR BUDGET CONSIDERATION: The cost for this project was accounted for in the 2010 capital budget. The project is funded by State Aid funds raised through the gas tax. VISION CONSIDERATION: Not applicable. Attachments: Resolution Prepared by: Jim Olson, Engineering Project Manager Reviewed by: Scott Brink, City Engineer Mike Rardin, Public Works Director Approved by: Tom Harmening, City Manager City Council Meeting of December 20, 2010 (Item No. 4b) Page 2 Subject: Final Payment Resolution - Contract 75-10 Valley Paving, Inc. – Project No. 2009-1101 RESOLUTION NO. 10-___ RESOLUTION AUTHORIZING FINAL PAYMENT IN THE AMOUNT OF $13,724.68 FOR THE 2010 MSA STREET IMPROVEMENT PROJECT WITH VALLEY PAVING, INC. CITY PROJECT NO. 2009-1101 CONTRACT NO. 75-10 BE IT RESOLVED by the City Council of the City of St. Louis Park, Minnesota, as follows: 1. Pursuant to a written contract with the City dated May 6, 2010, Valley Paving, Inc. has satisfactorily completed the 2010 MSA Improvement Project, as per Contract No. 75-10. 2. The Director of Public Works has filed his recommendations for final acceptance of the work. 3. The work completed under this contract is accepted and approved. The City Manager is directed to make final payment on the contract, taking the contractor's receipt in full. Original Contract Amount $ 137,890.60 Change Orders $ 1,840.00 Overruns $ 6,182.11 Final Contract Amount $ 145,912.71 Previous Payments $ 132,188.03 Balance Due $ 13,724.68 Reviewed for Administration: Adopted by the City Council December 20, 2010 City Manager Mayor Attest: City Clerk Meeting Date: December 20, 2010 Agenda Item #: 4c Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Final Payment Resolution - Contract 12-10 Magney Construction, Inc. – Project No. 2008-1400. RECOMMENDED ACTION: Motion to Adopt Resolution authorizing final payment in the amount of $12,000.00 for Water Treatment Plant No. 1 Rehabilitation with Magney Construction, Inc., Project No. 2008-1400, City Contract No. 12-10. POLICY CONSIDERATION: Does the Council wish to approve the final payment? BACKGROUND: City Council approved undertaking the Water Treatment Plant No. 1 Rehabilitation, Project No. 2008-1400. The project was advertised, bid and awarded to Magney Construction, Inc on January 19, 2010 in the amount of $857,400.00. This project included filter rehabilitation and process improvements to Water Treatment Plant No 1 located adjacent to Bronx Park at 2936 Idaho Avenue South. The Contractor completed this work within the contract time allowed at a final contract cost of $869,771.85, including three change orders in the amount of $12,371.85. FINANCIAL OR BUDGET CONSIDERATION: The cost for this project was accounted for in the 2010 capital budget. The project is funded by the Water Utilities Fund. VISION CONSIDERATION: Not applicable. Attachments: Resolution Prepared by: Jim Olson, Engineering Project Manager Reviewed by: Scott Brink, City Engineer Mike Rardin, Public Works Director Approved by: Tom Harmening, City Manager City Council Meeting of December 20, 2010 (Item No. 4c) Page 2 Subject: Final Payment Resolution - Contract 12-10 Magney Construction, Inc. – Project No. 2008-1400 RESOLUTION NO. 10-___ RESOLUTION AUTHORIZING FINAL PAYMENT IN THE AMOUNT OF $12,000 FOR THE WATER TREATMENT PLANT NO. 1 REHABILITATION PROJECT WITH MAGNEY CONSTRUCTION, INC. CITY PROJECT NO. 2008-1400 CONTRACT NO. 12-10 BE IT RESOLVED by the City Council of the City of St. Louis Park, Minnesota, as follows: 1. Pursuant to a written contract with the City dated January 10, 2010, Magney Construction, Inc. has satisfactorily completed the Water Treatment Plant No. 1 Rehabilitation Project, as per Contract No. 12-10. 2. The Director of Public Works has filed his recommendations for final acceptance of the work. 3. The work completed under this contract is accepted and approved. The City Manager is directed to make final payment on the contract, taking the contractor's receipt in full. Original Contract Amount $ 857,400.00 Change Orders $ 12,371.85 Final Contract Amount $ 869,771.85 Previous Payments $ 857,771.85 Balance Due $ 12,000.00 Reviewed for Administration: Adopted by the City Council December 20, 2010 City Manager Mayor Attest: City Clerk Meeting Date: December 20, 2010 Agenda Item #: 4d Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Amend Consultant Contract 02-10 - Highway 7/Wooddale Avenue Interchange Project - Project No. 2004-1700. RECOMMENDED ACTION: Motion to Approve Amendment No. 1 to Contract 02-10 which provides engineering construction services for the Highway 7/Wooddale Avenue Interchange Project - Project No. 2004-1700. POLICY CONSIDERATION: Not applicable. BACKGROUND: Construction of the Highway 7 & Wooddale Improvement Project has substantially been completed. The interchange was open to traffic November 10, 2010. Restoration and other miscellaneous construction and clean-up work does remain, and final completion of the project is required by July 1, 2011. Mn/DOT has provided the majority of construction and inspection services for the work completed. However, the overall responsibility and management of the entire project has continued to reside with the City. Due to staff resource limitations, prior to commencing construction in September of 2009, the City retained the services of SRF Consulting to assist in construction management, which includes the following: 1. Additional administrative requirements of the Delegated Contract Process (DCP), required for any project receiving federal aid. For this particular project, two sources of federal funds have been utilized, including American Resource and Recovery Act (ARRA) and Surface Transportation Project (STP) funds. 2. Attendance at pre-construction and weekly construction meetings, and review of contractor payment and reimbursement requests. The consultant also assisted the City and Mn/DOT in documentation and submittals to the Mn/DOT District State Aid Engineer throughout the project, the preparation and execution of change orders, scheduling, and assisting with material and testing certifications. 3. In addition to the Delegated Contract Process requirements described above, SRF’s services provided for additional coordination and liaison activities with the Mn/DOT field staff, local property owners, private utilities, and other stakeholders during the course of construction. Often times during construction as work progresses, supplemental field surveys, changes and/or adjustments to the plans, and additional engineering assistance and support to the Contractor and Mn/DOT are always needed during the course of construction. While the project as a whole City Council Meeting of December 20, 2010 (Item No. 4d) Page 2 Subject: Amend Consultant Contract 02-10 - Hwy 7/Wooddale Ave Interchange - Project No. 2004-1700 progressed well, a project of this size and magnitude still required a substantial amount of involvement by the design engineer during the course of construction. This additional time was figured into SRF’s original services contract. At this time, SRF is projected to exceed their budgeted amount of $273,460. The reason for the overage is due solely to the necessity of utilizing an environmental sub-consultant during the course of construction. During construction, the Contractor encountered substantial amounts of contaminated soils. In order to keep the project moving on schedule, ensuring environmental compliance (including proper construction methods and use and disposal of materials), and proceeding cost effectively, a geotechnical and environmental professional has been needed on-site frequently. In addition to the on-site services, the frequent use of a testing laboratory for analysis of soil and material samples has also been required. American Engineering Testing (AET) has been performing these services as a sub-consultant to SRF. The services provided by AET commenced last spring and are anticipated to extend into April of 2011. Initially, it was anticipated that inclusion of the services provided by AET would be considerably less and could fall within the contract limit fee estimated originally by SRF. Although the encountering of contaminated materials was anticipated, the extent of the material and the associated environmental compliance work ultimately required was not. As a result, AET has provided SRF with an estimated projected total fee of $118,560. When combining the work date with estimated projections to final completion, a contract amendment is necessary. SRF is therefore requesting that the total contract amount be increased by $118,560 to a total amount of $392,020. FINANCIAL OR BUDGET CONSIDERATION: Estimated SRF Contract Cost All work performed under this contract is being paid for on a time and materials basis. The initial source of funding for professional services for this work/project is the HRA levy or other EDA funds. The professional services cost for Contract 02-10 (Construction Services) with SRF is now estimated as follows: Original Contract $ 273,460 Amendment No. 1 $ 118,560 Total $ 392,020 SRF Contract Terms The following terms are incorporated into this contract: 1. All SRF contract work is still scheduled for completion by July 1, 2011. 2. Compensation is based on actual work performed with a maximum contract amount of $392,020. 3. SRF has independent contractor status. 4. The City may terminate this contract with seven (7) days notice. The document utilized for this contract is the City’s standard professional services agreement developed by the City Attorney. City Council Meeting of December 20, 2010 (Item No. 4d) Page 3 Subject: Amend Consultant Contract 02-10 - Hwy 7/Wooddale Ave Interchange - Project No. 2004-1700 Estimated Overall Project Cost As noted on the attached project cost summary, the estimated overall project budget provided to the City Council in August, 2009, prior to the commencement of the project, was $19 million. As of December 1, 2010 the estimated final project cost is $17,750,000. VISION CONSIDERATION: The following Strategic Direction and focus area has been identified by Council. St. Louis Park is committed to being a connected and engaged community. Focus will be on: • Promoting regional transportation issues and related dedicated funding sources affecting St. Louis Park including but not limited to Hwy. 100 and SWLRT. Attachments: Amendment No. 1 Project Cost Summary Prepared by: Scott Brink, City Engineer Reviewed by: Mike Rardin, Public Works Director Approved by: Tom Harmening, City Manager City Council Meeting of December 20, 2010 (Item No. 4d) Page 4 Subject: Amend Consultant Contract 02-10 - Hwy 7/Wooddale Ave Interchange - Project No. 2004-1700 AMENDMENT NO. 1 CITY of ST. LOUIS PARK CONSULTING SERVICES CONTRACT NO. 02-10 THIS AGREEMENT is made on December 6, 2010, by and between the CITY OF ST. LOUIS PARK, Minnesota, a Minnesota municipal corporation (hereinafter referred to as “City”), and SRF Consulting Group, Inc., a Minnesota corporation (hereinafter referred to as “SRF”). 1. BACKGROUND: The parties have previously entered into an agreement for consulting services dated August 3, 2009 (“Initial Agreement”). The Initial Agreement authorizes SRF to provide engineering consulting services for construction services at a cost not to exceed $273,460. 2. ITEM NO. 1: SCOPE OF SERVICES: This paragraph shall be amended to include the additional professional services outlined in the SRF letter dated October 13, 2010. 3. ITEM NO. 2: TIME FOR PERFORMANCE OF SERVICES: No changes. 4. ITEM NO. 3: COMPENSATION FOR SERVICES: Subject to the modifications set forth herein, the not to exceed compensation amount shall increase by $118,560 from $273,460 to $392,020. IN TESTIMONY WHEREOF, the parties hereto have caused this Agreement to be executed by their respective duly authorized officers. EXECUTED as to the day and year first above written. SRF CONSULTING GROUP, INC. CITY OF ST. LOUIS PARK By:________________________________ By:________________________________ Jeff Jacobs, Mayor Title:_______________________________ and________________________________ Thomas Harmening, City Manager 12/01/2010 Highway 7/Wooddale Interchange Project (Project No. 2004-1700) Projected Project Costs Estimate/Budget as Presented to City Council 08/03/09 Expenditures Construction*$12,300,000 Right of Way $4,500,000 Engineering $1,300,000 Construction Engineering (Mn/Dot)$900,000 Total $19,000,000 Funding Sources Federal (STIP)$5,885,000 ARRA (Stimulus)$3,465,000 Mn/Dot (Construction Engineering)$900,000 Local $8,750,000 Total $19,000,000 Projected as of 12/01/10 Expenditures Construction**$10,200,000 Right of Way ***$5,000,000 Engineering $1,650,000 Construction Engineering (Mn/Dot)$900,000 Total $17,750,000 Funding Sources Federal (STIP)$5,225,000 ARRA (Stimulus)$3,465,000 Mn/Dot (Construction Engineering)$900,000 Local $8,160,000 Total $17,750,000 * Construction cost does not include MCES portion. MCES portion is directly reimbursed from MCES. ** Projected Construction Cost Includes Change Orders and Work Orders. Dos not include MCES portion. MCES portion is directly reimbursed from MCES. *** Final Right of Way acquisition costs not yet determined (conservative estimate provided) City Council Meeting of December 20, 2010 (Item No. 4d) Subject: Amend Consultant Contract 02-10 - Hwy 7/Wooddale Ave Interchange - Project No. 2004-1700 Page 5 Meeting Date: December 20, 2010 Agenda Item #: 4e Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Resolution Authorizing State Aid Street Designation – W. 44th Street (South City Limits to East City Limits). RECOMMENDED ACTION: Motion to Approve attached Resolution establishing W. 44th Street as a Municipal State Aid Street. POLICY CONSIDERATION: Does Council wish to designate West 44th Street as a Municipal State Aid Street? BACKGROUND: In a report dated September 27, 2010, the City Council was provided an update regarding the 44th Street Reconstruction Project (City Project No. 2005-0500). The proposed project considers the reconstruction of approximately 6,500 feet (1.25 mi.) of W. 44th Street from France Avenue to Brookside Avenue (see attached Figure 1). Of this distance, 700 feet (about 10 per cent of the total project length) is located within the City of St. Louis Park. More specifically, W. 44th Street slices through a corner of the City of St. Louis Park between Glen Place and just east of Wooddale Avenue. As a result, the administration and delivery of this project is being driven by the City of Edina. A corresponding percentage of the project cost (about 10%) is therefore expected to be funded by the City of St. Louis Park. It is the intent of both cities to utilize Municipal State Aid funds for this project. West 44th Street is currently designated as a Municipal State Aid (MSAS) route in Edina; however, the short link within the City of St. Louis Park was thought to be, but is not designated as such. Therefore, in order for both cities to develop this as an MSAS project and to utilize State Aid funds for construction, this 700 foot (0.13 mile) link must be officially designated as an MSAS segment in accordance with Mn/DOT State Aid rules and procedures. In order for a street segment to be eligible for designation as an MSAS route, a street must terminate at another MSAS street, County highway, or State Highway. Because W. 44th Street is already designated MSAS on both ends of the link, the criteria is met. In addition, the City is allowed to designate 28.98 miles (20%) of its streets to the MSAS system. Currently the City has designated 27.91 miles of streets leaving 1.07 miles of streets yet to be designated to the MSAS system. The 0.13 miles needed for the W. 44th Street segment is therefore available. Mn/DOT State Aid staff has reviewed the City’s request to designate the 0.13 mile link of W. 44th Street in St. Louis Park as an MSAS route. Mn/DOT has granted approval of the designation, conditioned on the receipt of a City Council Resolution ordering the same. A Commissioner’s Order will follow from Mn/DOT upon receiving the Council resolution. With the support of St. Louis Park staff, the City of Edina has led a project public process for the project since last fall, and a second informational meeting was held on December 8. A more detailed report and update on the project process will be provided to Council in January of 2011. City Council Meeting of December 20, 2010 (Item No. 4e) Page 2 Subject: Resolution Authorizing State Aid Street Designation – W. 44th Street FINANCIAL OR BUDGET CONSIDERATION: As explained in the September 27, 2010 report, staff proposes the use of State Aid funds to pay for the City of St. Louis Park’s share of the project cost. However, as explained in the previous report, width requirements will likely require a variance from State Aid standards as part of the approval process. In the event a variance is not attained, and City of Edina chooses to undertake construction of this project without the use of State Aid funds, St. Louis Park will need to find an alternate source to fund its share. City policy (Resolution No. 00-078) provides that the source of funding for the City’s share for this type of project would come from general fund revenues and special assessments to the abutting property owners. VISION CONSIDERATION: None. Attachments: Resolution Project Location Map (Figure 1) Prepared by: Scott Brink, City Engineer Reviewed by: Mike Rardin, Public Works Director Approved by: Tom Harmening, City Manager City Council Meeting of December 20, 2010 (Item No. 4e) Page 3 Subject: Resolution Authorizing State Aid Street Designation – W. 44th Street RESOLUTION NO. 10-___ RESOLUTION ESTABLISHING MUNICIPAL STATE AID STREET (West 44th Street from South City Limits to East City Limits) WHEREAS, It appears to the City Council of the City of St. Louis Park that the street hereinafter described should be designated a Municipal State Aid Street under the provisions of Minnesota Law. NOW, BE IT RESOLVED by the City Council of the City of St. Louis Park, Minnesota, that the road described as follows to-wit: West 44th Street from the South city limits to the East city limits (0.13 miles in length) Be, and hereby is established, located, and designated a Municipal State Aid Street of said City, subject to the approval of the Commissioner of Transportation of the State of Minnesota. BE IT FURTHER RESOVED, that the City Clerk is hereby authorized and directed to forward two certified copies of this resolution to the Commissioner of Transportation for consideration, and that upon the Commissioner’s approval of the designation of said street or portion thereof, that same be constructed, improved, and maintained as a Municipal State Aid Street of the City of St. Louis Park, to be numbered and known as Municipal State Aid Street 318. Reviewed for Administration: Adopted by the City Council December 20, 2010 City Manager Mayor Attest: City Clerk City Council Meeting of December 20, 2010 (Item No. 4e) Page 4 Subject: Resolution Authorizing State Aid Street Designation – W. 44th Street Meeting Date: December 20, 2010 Agenda Item #4f Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: Special Meeting TITLE: Governmental Accounting Standards Board (GASB) Statement 54 Implementation. RECOMMENDED ACTION: Motion to Adopt Resolution committing specific revenue sources to special revenue funds and approve amendments to the City’s Fund Balance Policy. POLICY CONSIDERATION: Does the City Council wish to proceed with early implementation of GASB 54 for fiscal year end 2010? BACKGROUND: During the 2011 budget process, staff briefly explained the requirements of GASB 54 and its effects on the presentation of fund balance. Staff explained that it allows the City to use different methods to show anticipated spending of its financial resources. This helps demonstrate financial planning for accumulated resources and subsequently how they may or will be spent. GASB Statement 54 is required to be implemented for year end 2011, and staff is recommending early implementation. This allows the City to experience the benefits of the Statement, as well as provide time for staff to work through any necessary changes before required implementation. New Fund Balance Classifications GASB 54 separates fund balance into five new categories. Under the old standards there were three categories: Reserved, Designated, and Undesignated. The new categories are more descriptive, and focus on how the City plans to use its resources. A brief description of each of the new categories is listed below along with examples of each. Nonspendable fund balance- amounts that are not in a spendable form or are required to be maintained intact. An example of nonspendable fund balance is inventory. Inventory cannot be spent without being converted to cash first. Restricted fund balance- amounts subject to externally enforceable legal restrictions. An example of restricted fund balance is grant proceeds required to be spent for a specific purpose. The Cable TV capital grant received from Time Warner is an example of a restricted grant. Committed fund balance- amounts that can be used only for the specific purposes determined by a formal action of the government’s highest level of decision-making authority (City Council). Commitments may be changed or lifted only by the government taking the same formal action that imposed the constraint originally. An example of committed fund balance would be the City Council committing cable franchise fees for cable TV programming. Assigned fund balance- amounts a government intends to use for a specific purpose; intent can be expressed by the government body or by an official or body to which the governing body delegates the authority (City Manager and/or Controller). An example of assigned fund balance City Council Meeting of December 20, 2010 (Item No.4f) Page 2 Subject: Governmental Accounting Standards Board (GASB) Statement 54 Implementation would be the City’s portion of a construction project where other funding was received with the requirement of a match. Unassigned fund balance- residual amounts that are available for any purpose in the general fund. This category can only be found in the general fund, as by being in any other fund, the City has stated its intent to use it for the purpose of that fund. Committed, assigned, and unassigned fund balance combine to make unrestricted fund balance. Changes Due to GASB 54 This does not change how the City of St. Louis Park conducts business. All of the changes will be from a presentation standpoint in the City’s Comprehensive Annual Financial Report (CAFR) and the Fund Balance Policies. Other than the new classifications being presented in the CAFR, there are several other changes of note. One change will be related to the City’s Police and Fire Pension Fund. This fund is currently classified as a Special Revenue Fund. Under GASB 54, this fund no longer meets the definition of a Special Revenue fund, as there are no specific revenue sources. Based on the City’s Capital Improvement Plan and Long Range Financial Management Plan, the majority of the expenditures in the Police and Fire Pension Fund will be capital related. This allows the City to reclassify the fund to a Capital Projects Fund. This does not change how the City uses the Fund; it only changes what section of the CAFR it is presented in. The second change is related to fund balance commitments. To meet the Special Revenue Fund definition, a fund must have “specific revenue sources that are restricted or committed to expenditure for specified purposes”. This requires the Council to adopt a resolution “committing” specific revenues to each of the special revenue funds prior to the end of the year. This resolution will be presented to Council on December 20th. Attachment #1 gives the anticipated fund balance classifications for each Governmental Fund. The Special Revenue Funds are highlighted, and the commitments that will be included in the resolution are italicized. This document will change as we go through the audit process and determine other revenues that fall under a specific category. The commitments made by the Council cannot change without Council taking similar action to remove them. The final change of note is related to the City’s Fund Balance Policies originally adopted on October 27, 2008. The Fund Balance Policies need to be revised to authorize the City Manager and/or Controller to assign fund balance to reflect the City’s intended use of funds. This does not change the authority to actually spend resources, but to assign resources for a presentation standpoint only. The Fund Balance Policies also need to include how the City intends to use its resources when multiple categories of fund balance are available. The revised Fund Balance Policies are included as attachment #2. There have been several minor changes made to reflect the new terminology used in GASB 54 and to reflect how funds are currently being used. Again, the revised policy does not change how the City conducts business or the General Fund reserve. Changes to the policies have been highlighted in the attachment. FINANCIAL OR BUDGET CONSIDERATION Detail provided in this report. City Council Meeting of December 20, 2010 (Item No.4f) Page 3 Subject: Governmental Accounting Standards Board (GASB) Statement 54 Implementation VISION CONSIDERATION: St. Louis Park is committed to being a connected and engaged community. Attachments: Resolution Fund Balance Classifications Fund Balance Policies Prepared by: Steven Heintz, Finance Supervisor Reviewed by: Brian A. Swanson, Controller Approved by: Tom Harmening, City Manager City Council Meeting of December 20, 2010 (Item No.4f) Page 4 Subject: Governmental Accounting Standards Board (GASB) Statement 54 Implementation RESOLUTION NO. 10-____ RESOLUTION COMMITTING SPECIFIC REVENUE SOURCES IN SPECIAL REVENUE FUNDS WHEREAS, the Governmental Accounting Standards Board’s Statement #54 definition of special revenue funds states that special revenue funds are used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditures for specified purposes other than debt service or capital projects; and, WHEREAS, the term “proceeds of specific revenue sources” establishes that one or more specific restricted or committed revenues should be the foundation for a special revenue fund and comprise a substantial portion of the fund’s revenues; and, WHEREAS, investment earnings and transfers from other funds do not meet the definition of a specific revenue source; and, WHEREAS, council action is required to formalize the commitment of the specific revenue sources to specified purposes. NOW, THEREFORE BE IT RESOLVED by the City Council of the City of St. Louis Park that effective December 31, 2010, the specific revenue source of each special revenue fund and the specific purposes for which they are committed are as follows: Fund Specific Revenue Sources Committed For Park and Recreation Tax Levy Recreation Programs Park and Recreation Charges for Services Recreation Programs Housing Rehab Private Activity Revenue Bond Fees Continued Investment in Housing Cable TV Cable franchise Fees Cable TV Programming Special Service Districts Special Assessments Special Service District Operations Reviewed for Administration: Adopted by the City Council December 20, 2010 City Manager Mayor Attest: City Clerk FundCategoryCommitted/Assigned For:General FundE-911 MoneyRestrictedInventoryNonspendablePrepaidsNonspendableDWI Enforcement- from Crime FundAssignedDWI EnforcementSPECIAL REVENUE FUNDSPark & RecInventory NonspendableSummer Playground Progaram RestrictedProperty TaxesCommittedRecreation ProgramsCharges for ServicesCommittedRecreation ProgramsRemainder Assigned Recreation ProgramsHousing RehabLoans Rec-noncurrent NonspendableRevenues from Rev Bond FeesCommittedPreventing deterioration of mult-unit housingRemainder Assigned Preventing deterioration of mult-unit housingCable TVFranchise FeesCommittedCable TV ProgrammingTime Warner Capital Grant Restricted CapitalRemainder Assigned Cable TV ProgrammingCommunity DevelopmentCDBG Funds RestrictedRemainder Assigned Community DevelopmentSpecial Service DistrictsSpecial AssessmentsCommittedSpecial Service Dist OperationsRemainderAssignedSpecial Service Dist OperationsCity of St. Louis ParkGASB 54 ImplementaionFund Balance ClassificationsFYE 2010City Council Meeting of December 20, 2010 (Item No. 4f) Subject: Governmental Accounting Standards Board (GASB) Statement 54 Implementation Page 5 CAPITAL PROJECTS FUNDSPolice & Fire PensionsRefund of overpayment for P&F Pension RestrictedPermanent Improvement RevolvingSpecial AssessmentsAssigned/Restricted Capital Improvements benefiting individual property ownersRemainderAssignedCapital Improvements benefiting individual property ownersStreets Captial ProjectsMSA RestrictedRemainderAssignedStreet ConstructionDevelopment EDAParking Lot RentAssignedRedevelopment EffortsRemainderAssignedRedevelopment EffortsRedevelopment DistrictTax IncrementsRestrictedHRA LevyRestrictedRemainderAssignedTax Increment FinancingFire Station BondsBondsRestrictedConstruction of two new fire stationsRemainderAssignedConstruction of two new fire stationsPark Improvement FundProperty TaxesAssignedSchool Dist ContributionsRestrictedPark Dedication FeesRestrictedRemainderAssignedDevelopment of ParksPavement Management FundProperty TaxesAssignedStreet RehabilitationFranchise FeesAssignedStreet RehabilitationRemainderAssignedStreet RehabilitationDEBT SERVICE FUNDSRestricted City Council Meeting of December 20, 2010 (Item No. 4f) Subject: Governmental Accounting Standards Board (GASB) Statement 54 Implementation Page 6 St. Louis Park Fund Balance Policy 1 City of St. Louis Park Fund/Cash Balance Policies December 20, 2010 The purpose of the fund balance policies is to establish appropriate fund balance levels for each fund that is primarily supported by property tax revenues or user fees. These policies will ensure that adequate resources are available to meet cash flow needs for carrying out the regular operations of the City, as well as to meet the fund balance requirements identified in the City’s Long Range financial Management Plan. The funds that will be addressed in this policy are: General Fund, Parks & Recreation, Park Improvement, Pavement Management, and Enterprise Funds. The City Council authorizes the Controller and/or City Manager to assign fund balance that reflects the City’s intended use of those funds. When both restricted and unrestricted resources are available for use, it is the City’s policy to first use restricted resources, and then use unrestricted resources as they are needed. When unrestricted resources are available for use, it is the City’s policy to use resources in the following order; 1) committed 2) assigned 3) unassigned. These fund balance classifications apply only to Governmental Funds, not Enterprise Funds. I. General Fund The General Fund is established to account for all revenues and expenditures which are not required to be accounted for in other funds. Revenue sources include property taxes, license and permit fees, fines and forfeits, service charges, intergovernmental revenues, investment interest earnings, and transfers. The General Fund’s resources finance a wide range of functions including the operations of general government, public safety, and public works. The City will strive to maintain an unassigned fund balance in the General Fund in the range of 35-50% of the subsequent year’s budgeted expenditures. Since a significant source of revenue in the General Fund comes from property taxes, maintaining a fund balance that is equal to at least five months of operating expenditures ensures that sufficient resources are available to fund basic City functions between property tax settlements. This range is in conformance with guidance from the Office of the State Auditor (OSA). Amounts that exceed 40% may be transferred out to other funds. An assignment or restriction of fund balance may be used to offset revenues earned in one year where substantial services are required to be performed in the next fiscal period II. Parks & Recreation The Parks and Recreation Fund is a Special Revenue Fund that provides for both passive and active recreational activities throughout the community. It receives the majority of its funding from property taxes and user fees which finance specific activities. These activities are separated into several divisions: Organized Recreation, Park Maintenance, City Council Meeting of December 20, 2010 (Item No. 4f) Subject: Governmental Accounting Standards Board (GASB) Statement 54 Implementation Page 7 St. Louis Park Fund Balance Policy 2 Environment, Westwood Nature Center, Recreation Center and Vehicle Maintenance. Fees for programs within these divisions are reviewed each year to determine the appropriate amount of revenue to offset the costs and yet keep the program affordable for participants. In some cases, the fee charged is either more market driven or may be based on ability or willingness to pay, which will set the fees above or below the direct costs of running an individual program. The City will strive to maintain a fund balance in the Parks and Recreation Fund in the range of 10-25% of the subsequent year’s budgeted expenditures. This lower percentage is deemed adequate since many of the program revenues are received earlier in the year than property tax settlements. Amounts that exceed 15% may be transferred out to other funds. III. Park Improvement Fund The Park Improvement Fund pays for land, buildings, and infrastructure for the parks within the city. Property taxes and park dedication fees make up the majority of the revenues for this fund. The City will strive to maintain a fund balance in the Park Improvement Fund in an amount sufficient to support the ongoing capital expenditures planned in the CIP and in congruence with the Long Range Financial Management Plan. IV. Pavement Management Fund The Pavement Management Fund is used to account for the financing of street rehabilitation projects. Revenue sources are provided mainly through franchise fees and property taxes. Street projects are programmed into the City’s Capital Improvement Plan and are generally planned years in advance. The City will strive to maintain the fund balance in the Pavement Management Fund in an amount sufficient to support the ongoing capital expenditures planned in the CIP and in congruence with the Long Range Financial Management Plan. V. Enterprise Funds These funds were established to account for the operation of Water, Sewer, Solid Waste, and Storm Water operations which are designed to be self-supporting from user charges. a. Water Utility This fund is used to account for the provision of water services to the customers of the City related to administration, operations, maintenance, billing and collection. This fund is financed predominantly through user charges. City Council Meeting of December 20, 2010 (Item No. 4f) Subject: Governmental Accounting Standards Board (GASB) Statement 54 Implementation Page 8 St. Louis Park Fund Balance Policy 3 The City will strive to maintain a cash balance in the Water Utility Fund in the range of 35-50% of the subsequent year’s budgeted expenditures. Since a significant source of revenue in the Water Utility Fund comes from user charges, maintaining a cash balance that is equal to at least 35-50% of the subsequent year’s expenditures ensures that sufficient resources are available to fund basic City functions between receipts of user charges. In addition, due to the mature water infrastructure within the City, a higher percentage of fund balance is prudent to address any potential issues. b. Sewer Utility This fund is used to account for the provisions of sewer services to the customers of the City. All activities necessary to provide this utility to the customers are administration, operations, maintenance, billing and collection. This fund is financed predominantly through user charges. The City will strive to maintain a cash balance in the Sewer Utility Fund in the range of 35-50% of the subsequent year’s budgeted expenditures. Since a significant source of revenue in the Sewer Utility Fund comes from user charges, maintaining a cash balance that is equal to at least 35-50% of the subsequent year’s expenditures ensures that sufficient resources are available to fund basic City functions between receipts of user charges. In addition, due to the age of sewer infrastructure within the City, a higher percentage of fund balance is prudent to address any potential issues. c. Solid Waste Utility This fund is used to account for the provisions of solid waste services to the customers of the City related to collection, disposal and recycling of solid waste. This fund is financed predominantly through user charges and investment income. The City will strive to maintain a cash balance in the Solid Waste Utility Fund in the range of 25-40% of the subsequent year’s budgeted expenditures. Due to less volatility, a lesser cash balance percentage is justifiable. This will ensure that sufficient resources are available to fund basic Solid Waste activities. d. Storm Water Utility This fund is used to account for the provision of storm water to the customers of the City related to administration, operations, maintenance, billing and collection. This fund is financed predominantly through user charges and investment income. The City will strive to maintain a cash balance in the Storm Water Utility Fund in the range of 25-40% of the subsequent year’s budgeted expenditures. Due to less volatility, a lesser cash balance percentage is justifiable. This will ensure that sufficient resources are available to fund basic Storm Water activities. City Council Meeting of December 20, 2010 (Item No. 4f) Subject: Governmental Accounting Standards Board (GASB) Statement 54 Implementation Page 9 Meeting Date: December 20, 2010 Agenda Item #: 4g Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Approve Fund Equity Transfers, Fund Closings, and Interfund Loans. RECOMMENDED ACTION: • Motion to Adopt Resolution authorizing fund equity transfers and fund closings. • Motion to Adopt Resolution approving interfund loans. POLICY CONSIDERATIONS: Fund Equity Transfers Does the Council concur with Staff’s recommendation on the level of fund balance within the General Fund after the transfer of dollars to the Park Improvement Fund, Capital Replacement Fund, and the Employee Flexible Spending Fund as per the General Fund Balance policy? Fund Closings Does Council concur with the Staff recommendation to close certain funds thereby maintaining as few funds as legally required and necessary for sound business practices? Inter-fund Loans Does the Council concur with authorizing interfund loans from the Development Fund to certain tax increment districts? BACKGROUND: Equity Transfers As of December 31, 2009, the fund balance in the General Fund, excluding the E-911 funds which are restricted in the way that they can be used, was $11,272,776. This unreserved fund balance was equal to 48.65% of the 2010 budgeted expenditures. The City’s Fund Balance Policy states that we will strive to maintain a fund balance in the General Fund that is within a range of 35% to 50% of the following year’s budgeted expenditures, and that any amount greater than 40% can be transferred to other funds. The City’s policy follows the Office of the State Auditor’s recommended fund balance guidelines. At the end of 2010, Staff anticipates that the unassigned fund balance in the General Fund will increase to approximately $12.2 million. The General Fund expenditure budget for 2011, as presented at the December 6, 2010, Truth-in-Taxation meeting, totals $23,283,787. As a result, the projected end of the year fund balance within the General Fund would be approximately 52 - 53% of the subsequent year’s budgeted expenditures. Therefore, it is recommend that an equity transfer from the General Fund in 2010 of $1.8 million occur, with $550,000 transferred to the Park Improvement Fund, $250,000 transferred to the Capital Replacement Fund, and $1.0 million transferred to the Employee Flexible Spending Fund. All of these funds have sustainability challenges, and the infusion of these dollars will help the funds in achieving long term sustainability. These transfers represent a spend down of reserves, and there continues to be other funds, such as Cable TV, Street Capital Projects, and Uninsured Loss that have long term funding challenges that will need to be addressed in the future. City Council Meeting of December 20, 2010 (Item 4g) Page 2 Subject: Approve Fund Equity Transfers, Fund Closings, and Interfund Loans As a result of these recommendations, the fund balance within the General Fund would be projected to be in a range of 44% - 46% of the proposed 2011 expenditures, depending on fiscal year 2010 final year end results. A more detailed explanation of the recommended transfers follows: Park Improvement Fund – Transfer in of $550,000: This fund provides for the financing of land acquisitions and development for park purposes. Projects include upgrading of City park facilities, improvements to fields, courts, and trails, and tree replacements. In discussing the Long Range Financial Management Plan at the October 25, 2010 Study Session, the Park Improvement Fund was identified as a fund that could begin to run a deficit in 2019 without increased revenues. By directing $550,000 of the General Fund equity transfer to the Park Improvement Fund, it is projected that the fund should be sustainable through 2020. Capital Replacement Fund – Transfer in of $250,000: This purpose of this fund is for the replacement or upgrades of the City’s equipment, vehicles, computers, and municipal facilities. Staff has worked through a significant analysis of this fund in 2010 to try to resolve future funding challenges. With a transfer of $250,000 from the General Fund, the Capital Replacement Fund is projected to have a positive cash balance of $535,000 in 2020, bringing it closer to long term sustainability. Employee Flexible Spending Fund – Transfer in of $1.0 million: The Employee Flexible Spending Fund covers expenses such as workers compensation, tuition reimbursement, unemployment, and other employee benefits. This fund does not have a dedicated funding source, therefore, a temporary solution for this fund has been a transfer from the General Fund. As a result, the fund has a current deficit which will continue to grow without a permanent long term funding source. The most recent transfers to this fund have been $200,000 in 2005, $350,000 in 2007, and $300,000 in 2009. In order to accomplish the goal of longer term sustainability in this fund, a transfer of $1.0 million is recommended from the General Fund, but this will not solve the funding challenges and continued analysis will need to occur. Staff will review the fund balance in the General Fund again near the end of 2011 and each year going forward to determine if additional equity transfers can be made. Fund Closings At the end of each year, Staff determines if there are any funds which are no longer necessary and should be closed. In 2010, the 2003A General Obligation Bonds were refunded, which allows this debt service fund to be recommended for closure. Staff is recommending that the City Council take formal action to close the following fund: Fund Number Name 3450 2003A GO Bonds City Council Meeting of December 20, 2010 (Item 4g) Page 3 Subject: Approve Fund Equity Transfers, Fund Closings, and Interfund Loans Interfund Loans In the City’s Capital Improvement Plan, the Elmwood TIF District has been identified as a funding source for several street capital projects, including the Wooddale Avenue and Highway 7 Interchange and West 36th St. Streetscape. While the project costs have been incurred, there isn’t sufficient increment generated in the district to fund the City’s portion of the costs at this time. In order to provide a temporary funding source for the City’s obligation in these projects until additional increment is received, an interfund loan is necessary from the Development Fund to the Elmwood TIF District. Staff is recommending that an interfund loan resolution be adopted in the amount of $5 million from the Development Fund to the Elmwood TIF District. The Development Fund will have sufficient cash available to cover the project costs, and the loan will be repaid with 4% interest as tax increment is generated in the coming years. The Ellipse TIF District was created in 2009. New districts typically have expenses for consultant fees, public notice publication costs, and other administrative expenses that occur prior to the receipt of any increment. Staff is recommending that an interfund loan resolution be adopted in the amount of $10,000 from the Development Fund to the Ellipse TIF District. The Development Fund will have sufficient cash available to cover these administrative expenses, and the loan will be repaid with 4% interest as future tax increment is generated. Fund Potential Deficit Maximum Loan Elmwood TIF District $4,000,000 $5,000,000 Ellipse TIF District $ 5,000 $ 10,000 FINANCIAL OR BUDGET CONSIDERATION: The actions recommended will allow the General Fund to retain a healthy fund balance within our fund balance policy requirements, and direct resources to other funds where there are funding challenges. The actions will also provide for interfund loans until sufficient increment is generated to fund administrative expenses and capital improvement needs. VISION CONSIDERATION: Not applicable Attachments: Resolution Authorizing Fund Equity Transfers and Fund Closings Resolution Authorizing Interfund Loans Prepared by: Darla Monson, Senior Accountant Reviewed by: Brian Swanson, Controller Approved by: Tom Harmening, City Manager City Council Meeting of December 20, 2010 (Item 4g) Page 4 Subject: Approve Fund Equity Transfers, Fund Closings, and Interfund Loans RESOLUTION NO. 10-___ RESOLUTION AUTHORIZING FUND EQUITY TRANSFERS AND FUND CLOSINGS WHEREAS, the City of St. Louis Park has created various special purpose funds; and WHEREAS, some of those funds rely on transfers from the General Fund for their continued operation; and WHEREAS, certain funds are no longer necessary to the operation of the city; NOW, THEREFORE, BE IT RESOLVED, by the St. Louis Park City Council: 1. Approval is hereby given to the Controller to transfer the following sums of money from the General Fund to the designated funds as shown. Transferring Fund Receiving Fund Amount General Fund Park Improvement Fund $ 550,000 General Fund Capital Replacement Fund $ 250,000 General Fund Employee Flexible Spending $ 1,000,000 2. Approval is hereby given to the Controller to close the following funds as shown. Fund Number Name 3450 2003A GO Bonds Reviewed for Administration: Adopted by the City Council December 20, 2010 City Manager Mayor Attest: City Clerk City Council Meeting of December 20, 2010 (Item 4g) Page 5 Subject: Approve Fund Equity Transfers, Fund Closings, and Interfund Loans RESOLUTION NO. 10-___ RESOLUTION AUTHORIZING INTERFUND LOANS WHEREAS, the City of St. Louis Park has created various special purpose funds; and WHEREAS, some of those funds may at times run a short term deficit and require an interfund loan; NOW THEREFORE BE IT RESOLVED by the City of St. Louis Park City Council: 1. The following interfund loans are approved from the Development Fund as needed: Fund Maximum Loan Elmwood TIF District $ 5,000,000 Ellipse TIF District $ 10,000 2. Such loans are to be repaid with 4% interest when sufficient resources are available. Reviewed for Administration: Adopted by the City Council December 20, 2010 City Manager Mayor Attest: City Clerk Meeting Date: December 20, 2010 Agenda Item #: 4h Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: Special Meeting TITLE: Approve Contract with HLB Tautges Redpath, LTD for Auditing Services. RECOMMENDED ACTION: Motion to approve a one year contract with three option years with HLB Tautges Redpath, LTD for auditing services. POLICY CONSIDERATION: Does the City Council wish to proceed with the contract for auditing services with HLB Tautges Redpath, LTD? BACKGROUND: The City Council directed staff on October 25 to request proposals for auditing services for fiscal year end 2010 with three option years. In early November, staff sent out a Request for Proposals (RFP) for auditing services. We received seven proposals, all from very reputable CPA firms. After consideration of the proposals, interviews, and reference calls, staff came to the conclusion that HLB Tautges Redpath, LTD would provide the best overall service for the City. Staff from HLB Tautges Redpath, LTD will be in attendance at the Special Study Session on December 20 to answer any questions. Below is the dollar cost proposal submitted by HLB Tautges Redpath, LTD. Service 2010 2011 2012 2013 Total Financial Audit $40,000 $40,800 $41,700 $42,600 $165,100 CAFR Preparation 8,000 8,100 8,200 8,300 32,600 Single Audit 3,500 3,600 3,700 3,800 14,600 New Client Discount (6,500) (5,000) (3,500) (2,000) (17,000) Total $45,000 $47,500 $50,100 $52,700 $195,300 The Single Audit fee will only be assessed if the City is required to have a single audit for that year. A single audit is required if the City expends $500,000 or more of Federal assistance. The City had a single audit in 2009, and is required to have one in 2010, due to the ARRA funding received for the Hwy 7 and Wooddale project. The City’s 2009 audit costs were $51,000 for the same services, including Single Audit fees. FINANCIAL OR BUDGET CONSIDERATION The expense for the 2011 audit is included in the budget. VISION CONSIDERATION: Not applicable Attachments: None Prepared by: Steven Heintz, Finance Supervisor Reviewed by: Brian A. Swanson, Controller Approved by: Tom Harmening, City Manager Meeting Date: December 20, 2010 Agenda Item #: 4i Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Authorize Bank Signatories and Opening of Money Market Account. RECOMMENDED ACTION: Motion to Adopt Resolution authorizing bank signatories and opening of money market account. POLICY CONSIDERATIONS: Does the Council concur with the list of bank signatories for each of the Citizens Independent Bank accounts? Does the Council concur with opening a new money market account at Citizens Independent Bank? BACKGROUND: Checking Accounts The City currently has three checking accounts at Citizens Independent Bank in St. Louis Park. The Vendor Checking Account has the largest volume of transactions and is used for all City vendor payments. The Payroll Checking Account is used solely for payroll purposes. Only a very small volume of checks are written from this account, as all regular City employees are paid via direct deposit. The EDA Checking Account is used for EDA vendor payments, and this account also has a very small volume of checks written. Staff is in the process of updating bank signature cards and banking resolutions for all checking accounts. Based on new and more strict banking requirements, City Council approval by resolution and copies of minutes are needed. The following signatories are recommended for each account: City Vendor Checking Account Thomas Harmening* City Manager Nancy Gohman** Deputy City Mgr/HR Director Brian Swanson* Controller Steven Heintz** Finance Supervisor *Check signer/primary authority **Secondary authority Payroll Checking Account Thomas Harmening* City Manager Nancy Gohman** Deputy City Mgr/HR Director Brian Swanson* Controller Steven Heintz** Finance Supervisor *Check signer/primary authority **Secondary authority City Council Meeting of December 20, 2010 (Item 4i) Page 2 Subject: Authorize Bank Signatories and Opening of Money Market Account EDA Checking Account Thomas Harmening* Executive Director Phil Finkelstein* EDA President Brian Swanson** Controller Steven Heintz** Finance Supervisor *Check signer as required by EDA Bylaws **Secondary authority Staff will request Council authorization at any point in time when a signer needs to be added or removed from an account via resolution to ensure inclusion in minutes to meet the new banking requirements. Money Market Account All three of the checking accounts noted above are non-interest bearing accounts. Staff follows the objectives of the City Investment Policy by striving to maximize interest earnings by maintaining a minimal daily balance in each checking account and transferring any available cash to a money market fund outside of Citizens Bank. Currently, the two money market options the City has for investing available cash yield between .02% and .15%. In researching other alternatives, Staff met with Citizens Independent Bank to discuss short term investment options. Citizens Bank offers a Premier Money Market that currently yields .65% on balances of $1 million or more. Staff recommends that the City open a Premier Money Market account at Citizens Independent Bank to take advantage of the increased interest earnings potential while adhering to the objects of the City’s Investment Policy. There will be no check writing associated with this new money market account. Transfers will be allowed both to and from the other City and EDA checking accounts at Citizens in order to move funds efficiently when necessary with no fees. External wires will also be allowed to and from this money market account in order to facilitate other transactions such as purchasing longer term securities or making debt service payments. Staff recommends the following signatories on the new money market account: Premier Money Market Thomas Harmening* City Manager Brian Swanson* Controller Steven Heintz** Finance Supervisor Darla Monson** Senior Accountant *Primary authority **Secondary authority FINANCIAL OR BUDGET CONSIDERATION: The actions recommended will ensure that the City is compliant with banking and audit requirements by updating bank signatory information for all bank accounts. The new money market fund adheres to all of the objectives of the City’s Investment Policy of safety, liquidity, and yield. City Council Meeting of December 20, 2010 (Item 4i) Page 3 Subject: Authorize Bank Signatories and Opening of Money Market Account VISION CONSIDERATION: No applicable Attachments: Resolution Prepared by: Darla Monson, Senior Accountant Reviewed by: Brian Swanson, Controller Approved by: Tom Harmening, City Manager City Council Meeting of December 20, 2010 (Item 4i) Page 4 Subject: Authorize Bank Signatories and Opening of Money Market Account RESOLUTION NO. 10-____ RESOLUTION AUTHORIZING BANK SIGNATORIES AND OPENING OF MONEY MARKET ACCOUNT WHEREAS, the City of St. Louis Park has accounts at Citizens Independent Bank; and WHEREAS, it is necessary to update the current bank signatories; and WHEREAS, the addition of a new money market account would provide a sound investment option for investing short-term cash; NOW, THEREFORE, BE IT RESOLVED, by the St. Louis Park City Council: 1. Approval is hereby given to authorize the following bank signatories on the Citizens Independent Bank Accounts. City Vendor Checking Account Thomas Harmening* City Manager Nancy Gohman** Deputy City Mgr/HR Director Brian Swanson* Controller Steven Heintz** Finance Supervisor *Check signer/primary authority **Secondary authority Payroll Checking Account Thomas Harmening* City Manager Nancy Gohman** Deputy City Mgr/HR Director Brian Swanson* Controller Steven Heintz** Finance Supervisor *Check signer/primary authority **Secondary authority EDA Checking Account Thomas Harmening* Executive Director Phil Finkelstein* EDA President Brian Swanson** Controller Steven Heintz** Finance Supervisor *Check signer as required by EDA Bylaws **Secondary authority City Council Meeting of December 20, 2010 (Item 4i) Page 5 Subject: Authorize Bank Signatories and Opening of Money Market Account 2. Approval is hereby given to authorize the Controller to open a Premier Money Market at Citizens Independent Bank with the following bank signatories. Premier Money Market Thomas Harmening* City Manager Brian Swanson* Controller Steven Heintz** Finance Supervisor Darla Monson** Senior Accountant *Primary authority **Secondary authority Reviewed for Administration: Adopted by the City Council December 20, 2010 City Manager Mayor Attest: City Clerk Meeting Date: December 20, 2010 Agenda Item #: 4j Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Special Assessment - Sewer Service Line Repair at 5912 Minnetonka Boulevard. RECOMMENDED ACTION: Motion to Adopt Resolution authorizing the special assessment for the repair of the sewer service line at 5912 Minnetonka Boulevard - P.I.D. 09-117-21-34-0191. POLICY CONSIDERATION: The proposed action is consistent with policy previously established by the City Council. BACKGROUND: Erling Almlie, owner of the single family residence at 5912 Minnetonka Boulevard has requested the City to authorize the repair of the sewer service line for her home and assess the cost against the property in accordance with the City’s special assessment policy. Analysis: The City requires the repair of service lines to promote the general public health, safety and welfare within the community. The special assessment policy for the repair or replacement of water or sewer service lines for existing homes was adopted by the City Council in 1996. This program was put into place because sometimes property owners face financial hardships when emergency repairs like this are unexpectedly required. Plans and permits for this service line repair work were completed, submitted, and approved by City staff. The property owner hired a contractor and repaired the sewer service line in compliance with current codes and regulations. Based on the completed work, this repair qualifies for the City’s special assessment program. The property owner has petitioned the City to authorize the sewer service line repair and special assess the cost of the repair. The total eligible cost of the repair has been determined to be $4,163.45. FINANCIAL OR BUDGET CONSIDERATION: The City has funds in place to finance the cost of this special assessment. VISION CONSIDERATION: Not applicable. Attachments: Resolution Prepared by: Scott Anderson, Utility Superintendent Through: Mike Rardin, Public Works Director Brian Swanson, Controller Approved by: Tom Harmening, City Manager City Council Meeting of December 20, 2010 (Item No. 4j) Page 2 Subject: Special Assessment - Sewer Service Line Repair at 5912 Minnetonka Boulevard RESOLUTION NO. 10-____ RESOLUTION AUTHORIZING THE SPECIAL ASSESSMENT FOR THE REPAIR OF THE SEWER SERVICE LINE AT 5912 MINNETONKA BOULEVARD, ST. LOUIS PARK, MN P.I.D. 09-117-21-34-0191 WHEREAS, the Property Owner at 5912 Minnetonka Boulevard has petitioned the City of St. Louis Park to authorize a special assessment for the repair of the sewer service line for the single family residence located at 5912 Minnetonka Boulevard; and WHEREAS, the Property Owner has agreed to waive the right to a public hearing, right of notice and right of appeal pursuant to Minnesota Statute, Chapter 429; and WHEREAS, the City Council of the City of St. Louis Park has received a report from the Utility Superintendent related to the repair of the sewer service line. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of St. Louis Park, Minnesota, that: 1. The petition from the Property Owner requesting the approval and special assessment for the sewer service line repair is hereby accepted. 2. The sewer service line repair that was done in conformance with the plans and specifications approved by the Public Works Department and Department of Inspections is hereby accepted. 3. The total cost for the repair of the sewer service line is accepted at $4,163.45. 4. The Property Owner has agreed to waive the right to a public hearing, notice and appeal from the special assessment; whether provided by Minnesota Statutes, Chapter 429, or by other statutes, or by ordinance, City Charter, the constitution, or common law. 5. The Property Owner has agreed to pay the City for the total cost of the above improvements through a special assessment over a ten (10) year period at the interest rate of 5.85 %. 6. The Property Owner has executed an agreement with the City and all other documents necessary to implement the repair of the sewer service line and the special assessment of all costs associated therewith. Reviewed for Administration: Adopted by the City Council December 20, 2010 City Manager Mayor Attest: City Clerk Meeting Date: December 20, 2010 Agenda Item #: 4k PLANNING COMMISSION STUDY SESSION ST. LOUIS PARK, MINNESOTA September 15, 2010 – 6:00 p.m. COUNCIL CHAMBERS MEMBERS PRESENT: Lynne Carper, Claudia Johnston-Madison, Robert Kramer, Dennis Morris, Richard Person, Carol Robertson, Larry Shapiro MEMBERS ABSENT: Andrew Ford STAFF PRESENT: Adam Fulton, Meg McMonigal 1. Joint Meeting with the City Council Planning and Zoning Supervisor Meg McMonigal said the date for a joint meeting is September 27th, and she reviewed the topics with the Commission. The topics include: (1) Jim McComb of the McComb Group presenting the results of the Commercial Corridor Study, which looked at the market situation of 10 commercial nodes and corridors identified in the Comprehensive Plan; (2) Discuss ideas for the proposed “Business Park” zoning district; and (3) Other zoning items. She noted the meeting would be at the remodeled and expanded Municipal Service Center (MSC) and Commissioners are welcome to participate in the tour prior to the meeting. 2. Subdivision at 8849 Minnetonka Boulevard Planner Adam Fulton shared a proposed subdivision off of Minnetonka Boulevard with the Commissioners. The subdivision will be the subject of a public hearing at the next Planning Commission meeting. The proposed preliminary plat meets all of the requirements of the Subdivision Ordinance. A neighborhood meeting is scheduled for September 28th. 3. Freight Rail Study Commissioners Carper and Johnston-Madison discussed the MNS Freight Rail Study. The meetings held to date of the PMT were discussed. Commissioners discussed ideas to make it more safe, move train traffic through without parking or storing rail cars and buffer zones. A discussion of the role of the Planning Commission ensued; some members thought the Commission should make a statement and others noted that it is the Commission’s role to be advisory to the City Council. Additional mitigation ideas were discussed. City Council Meeting of December 20, 2010 (Item 4k) Page 2 Subject: Planning Commission Minutes of September 15, 2010 4. Zoning Items • Restaurant versus coffee shop Discussion about if a coffee shop should be defined. How are the parking needs different? • Setbacks for single family homes Should stacking setbacks vary by type of drive-through use (i.e. drug store, bank, fast food)? • Mixed use definition How should Mixed-use be defined? Is a “majority” of the ground floor enough? • Cluster housing Commissioner Robertson handed out 3 drawings of different kinds of homes. He noted that “cluster” in his mind was the ability to be flexible with a single family subdivision arrangement (#3 on the drawing). Commissioners and staff noted the term “cluster” may need to be changed. • Transit reduction in parking The reduction allowances in the code were noted. The definition of “superior” transit, as specified in the MX district, needs to be clarified. • PUD Staff will be reviewing the PUD ordinance for the modifications allowed and the legal structure of it. • Wetlands Can they be counted toward the lot area and for density purposes? Planners will discuss with engineering staff. • Building height Commissioner Robertson asked if the height limit is problematic for roof access. Planners noted they would discuss with the building inspections department. Respectfully submitted, Nancy Sells, Administrative Secretary Meeting Date: December 20, 2010 Agenda Item #: 4l OFFICIAL MINUTES PLANNING COMMISSION ST. LOUIS PARK, MINNESOTA October 6, 2010--6:00 p.m. COUNCIL CHAMBERS MEMBERS PRESENT: Lynne Carper, Andrew Ford (youth member), Claudia Johnston- Madison, Robert Kramer, Dennis Morris, Richard Person, Carl Robertson, Larry Shapiro MEMBERS ABSENT: None STAFF PRESENT: Meg McMonigal, Adam Fulton, Nancy Sells 1. Call to Order – Roll Call 2. Approval of Minutes of August 18, 2010 Commissioner Kramer noted he should be shown as present in the minutes of August 18, 2010. Commissioner Morris made a motion to recommend approval of the minutes of August 18, 2010 as amended. Commissioner Robertson seconded the motion, and the motion passed on a vote of 7-0. 3. Hearings A. Preliminary Plat – Eldridge 1st Addition Location: 8849 Minnetonka Boulevard Applicant: AKARE Companies, LLC (Rob Eldridge) Case No.: 10-27-S Adam Fulton, Planner, presented the staff report and noted this was for approval of a preliminary plat only, to create five new lots to be called Cobblecrest Court. Some issues included this being a new public street versus a private street with a cul-de-sac. There is a five foot wide sidewalk proposed. Hennepin County had some concerns about the site distance, but the City Engineer felt it met the requirements. Mr. Fulton stated that tree preservation was a critical issue for this lot and buckthorn and grape vines would be removed. The applicant was proposing to replace trees and 56 are required. The developer has indicated willingness to have neighborhood involvement in developing the final landscape plan. Storm water management issues were taken into consideration with installation of a pond and drainage swale. Commissioner Robertson referred to a study session discussion on cluster housing and asked if the possibility of cluster housing had been discussed with the applicant. He said there are interesting lot shapes and that could potentially change screening and the road location or alter the plan. City Council Meeting of December 20, 2010 (Item 4l) Page 2 Subject: Planning Commission Minutes of October 6, 2010 Mr. Fulton replied a policy decision was made to remove cluster housing from the R-1 Zoning District in 2006, so that possibility was not discussed. He added that the proposed lot shapes are typical of the neighborhood. Commissioner Carper and Mr. Fulton discussed pad sites. Mr. Fulton stated that this is a preliminary plat only, not review for a building permit or specific house review or design. He added that the applicant was the builder of two houses in the subdivision across the street and has indicated that the proposed houses will be similar to those houses. Commissioner Carper asked if there is any requirement to do a sidewalk on the northern portion adjacent to Minnetonka Boulevard. Mr. Fulton replied that there is already a trail in that location. Commissioner Carper asked about sidewalk on the other side of the cul-de-sac adjacent to the swale. Mr. Fulton indicated the requirement doesn’t extend to that area because those houses front on Cavell Ave. S. and have access to that street. Commissioner Carper asked how the lot sizes compared to the adjacent existing homes and surrounding blocks. Mr. Fulton replied this had come up in the neighborhood meeting. The R-1 study that was completed by the Planning Commission looked at the Cobblecrest neighborhood and other neighborhoods. There are a number of larger lots. The adjacent lots to the proposed subdivision are generally 10-13,000 square ft. lots and they are unusually shaped. Commissioner Kramer asked about the street width from the cul-de-sac and asked where parking would be allowed. Mr. Fulton said the subdivision ordinance requires a 29 ft. street width. The Fire Marshall will make the final determination as to which side parking will be allowed. Commissioner Kramer asked about options regarding narrowness and street width. Mr. Fulton said the applicant had not requested a variance to the subdivision ordinance requirement. Meg McMonigal, Planning and Zoning Supervisor, added a street could possibly be about 6-8 feet narrower. Rob Eldridge, applicant, Ridge Creek Custom Homes, provided background on the company and the development. Chair Person opened the public hearing. Bill Streetar, 3010 Cavell, stated his home is currently surrounded by asphalt and concrete on two sides and with this development it would be completely surrounded on three sides. He asked if the drainage swale would run on the east side of the street. Mr. Fulton replied it would be an above-ground drainage swale and would not drain anywhere but to Minnetonka Blvd. where it would travel into Cobblecrest Lake. City Council Meeting of December 20, 2010 (Item 4l) Page 3 Subject: Planning Commission Minutes of October 6, 2010 Mr. Streetar stated from his property line to the curb of the street is only ten feet. He said he felt that was untenable for a residence. He stated he lived on this property for 46 ½ years and had seen many changes. In 1973 the grade change took away two and a half feet of his street. He believed there were already a lot of issues including noise pollution from Minnetonka Blvd, heavy truck traffic, motorcycles, trespassing from the trail across his lot, and trash from the bus stop. They have to live with that. Mr. Streetar said the proposed development would bring a lot of light pollution from the street and it would be 20 feet from his back bedroom. He said he didn’t want to live in a cave. He said he was also concerned about the saleability of his house as the development would lower his home value. He said his home was his nest egg. Mr. Streetar stated he would like a visual barrier from the development, some kind of tasteful fence. Commissioner Robertson asked Mr. Streetar if the street were to be pushed further to the west, what distance would be workable? Mr. Streetar replied there were ideas from the neighborhood that could make this more neighborhood friendly. Having an entrance off of Cavell or Decatur would eliminate the intersection directly with Minnetonka Blvd., which would make more sense for safety and traffic. Diane Harrison, 3021 Decatur, said she wanted to present alternatives to the architect’s plan. She said the architect didn’t plan well putting the street where they did, saying that no one in their right mind would put cement on three sides of someone’s land. It wasn’t fair. There are other options. The original designer of the neighborhood made the lots long and thin and the homes were put to the back side of the lots. She suggested one of the options that could have been offered was for the neighbors to buy more land. Another option would be to bring the road in from Decatur Av. and turn it up. They could flip it to put the big houses to the north side of the lot and the smaller houses toward the south side of the lot. There would be no access from Minnetonka Blvd. and no problems from a poor turn area and cause for accidents. They could still have the turnaround and the builder could buy a small piece of the neighbor’s lot and put in a fence, adding more trees and shrubbery. Because it would be a new house with good sound insulation it would give Mr. Streetar land behind his home. Ms. Harrison said she didn’t feel the plan presented was the best option for the neighborhood. Kent Bowker, 3031 Decatur, stated his initial shock about the proposal had subsided. He said about nine years ago when he bought his house, he didn’t think the proposed subdivision was a buildable spot. He bought his house because of the existing environment. Mr. Bowker said in his opinion, as a real estate agent, Bill Streetar’s and Jeremy Gustafson’s houses clearly will lose value. He said all six of the homes will lose value because they will be losing their wooded oasis. The new homes will be big two- story homes, lots of trees will be removed, and it will not be the same environment. Mr. Bowker stated he didn’t see how they could allow a road to go in behind those homes. Commissioner Morris asked Mr. Bowker if he had any problems with the proposal of a new roadway along the south side of his house. Mr. Bowker replied it was alright because his garage was located there and he had a large side yard. City Council Meeting of December 20, 2010 (Item 4l) Page 4 Subject: Planning Commission Minutes of October 6, 2010 Mike Pacello, 3060 Cavell, read a letter from Gail and Michael Mooers, 8920 W. 31st St, who were unable to attend the meeting. The Mooers’ concerns regarded: the square footage of the homes would look out of place, the homes were too big for the neighborhood; the setback from the existing homes was too narrow which would impact privacy, security and saleability; the removal of so many mature trees had a huge environmental impact on the neighborhood; and five homes were too many for the land space available. The Mooers stated they were adamantly opposed to putting five homes into that space and tired of subdivisions having to do with the bottom line and more tax base for the city. They requested that the Commission not pass the proposal as it stood. Mr. Pacello asked when all this building will stop. He commented that space is good. The neighborhood enjoys large lots and nice houses. Briana Erickson, 3011 Decatur, quoted Mayor Jacobs from the St. Louis Park Community Guide, “It is a place where people live starting out raising families or settling in for retirement. A community of choice for a lifetime. Neighbors know each other and residents have real input into decisions affecting the community.” Ms. Erickson said this was a prime of example of what the neighborhood should have, and they should have a say. She said the development’s impact on residential streets needed to be minimized. The extra traffic and parking would place an unacceptable burden on the rest of the neighborhood. The new homes could be a lower scale in keeping with the character of the community. Their homes are about half the size and one half to one-third the price of the proposed homes. These are mansions going up in their back yard and it altered the neighborhood feel. There would also be an environmental impact removing trees and green space. Ms. Erickson stated that the new properties could potentially drive up their property taxes and would make the area unaffordable. She concluded by saying allowing this to take place was setting a dangerous precedence. Jeremy Gustafson, 3020 Cavell, stated his largest concern was preserving a private backyard for his kids. Having a street put in within ten feet of their property line would be only 6-7 steps to the street. He said he appreciated the developer’s offer to build a fence. Mark McDonnell, 2939 Cavell, stated he moved from his first house on Cavell to one of the new houses across the street. They were starting their family and their first house was not big enough. They were looking to leave the city, but they liked living here and they liked the school district. Mr. Eldridge was the builder of their new home. Mr. McDonnell said they couldn’t be happier with their new home and assumed the new houses would be similar to it. Mr. McDonnell said Mr. Eldridge would probably be able to work with the residents better than any builder he had come into contact with. James Campbell, 8806 Minnetonka, asked how runoff into Cobblecrest Lake would affect the lake. Mr. Fulton replied that runoff currently goes to Cobblecrest Lake and the new development wouldn’t change the current conditions. The applicant is required to not release any additional water above and beyond what the site currently releases. He explained that all of the water from Cavell and Decatur streets flows to the north toward Cobblecrest Lake. It then outlets to a man-made structure that regulates the water level of the lake and then it outlets to Minnehaha Creek. City Council Meeting of December 20, 2010 (Item 4l) Page 5 Subject: Planning Commission Minutes of October 6, 2010 An email from Jo Colleran, 8810 Minnetonka Blvd., was distributed to the Planning Commission. Her comments included support of 5 lots versus 7 lots. She appreciated the road alignment as proposed. If it was moved to the west, car lights as exiting onto Mtka. Blvd. would point directly at her home. She said she appreciates the attempt to infiltrate as much storm water runoff as possible. She suggested the roadway could be narrower to allow for less storm water runoff. Ms. Colleran supported removal of buckthorn and grape vine. She said she was concerned about how the final grading may impact the critical root zone of some of the trees he proposes to save. Ms. Colleran stated she was concerned about the view and landscaping. She said she spoke with the developer about using native trees and shrubbery to create a layered woodland effect versus a berm with evergreens. She provided details about how a rain garden on lot 1 could be planted with native trees and shrubs in order to help accomplish an aesthetic woodland view. Chair Person closed the public hearing as no one else was present wishing to speak. Commissioner Carper noted one of the speakers brought up the concept of a fence to separate the road from the homes to the east. He asked if that can be made a condition of approval. Chair Person asked if a berm would be workable. Mr. Fulton replied there would be a slight berm at the corner of Minnetonka and the new street. A berm was not possible on the east side of the new proposed street because that was where the drainage swale was proposed to be located. Mr. Fulton stated that the applicant has said he would be willing to put in a fence, but that his preference was not to put in a fence because he didn’t feel a fence made good neighbors. If the neighbors felt it was necessary, that condition would be perfectly acceptable. Commissioner Morris said a fence would make good neighbors in this case and it was compelling for the safety of the children. The dry pond could fill with water a few times a year and children could be drawn to it. He said he would advocate that a fence would be a good visual separation from the roadway for the property owners on the east and would also be good for safety. Commissioner Kramer asked how close someone could put the back of their house to the lot line. Mr. Fulton replied the rear yard setback is 25 feet for the R-1 district. Commissioner Kramer asked why houses along Cavell would be forced into a minimum lot backyard. He asked why the street is so far to the east and why couldn’t it be moved to the west, making the backyards of the new developments smaller. Mr. Fulton replied that the first proposal they reviewed for this was 7 lots with a cul-de- sac that came down right in the middle. It looked like it conformed to the Zoning Code. The developer has stated by putting a road in the proposed location, it allows them to accomplish a development at a slightly lower density while meeting the City’s requirements for storm water and road regulations. He added that was not to say the road couldn’t be moved. City Council Meeting of December 20, 2010 (Item 4l) Page 6 Subject: Planning Commission Minutes of October 6, 2010 Commissioner Robertson said the proposal will make Cavell lots become thru-lots. Typically the 25-ft rear yard setback was a rear yard to a rear yard setting. The proposal was an odd situation. Cars would be too close to the backyards and he was not comfortable with the street being as far to the east as it was. Problems could be avoided with more buffer, width and addition of a fence. He said there had already been a lot of public input on this site through the zoning process and through the Comprehensive Plan. It could be developed more intensely. The R-1 district can have 9,000 sq. ft. lots. The development meets the needs for more large single family homes. Commissioner Robertson stated it was a good development scale-wise. He said he appreciated that it was for five houses instead of seven houses. He said the public street needed to be pushed further from the backyards of the houses on Cavell. He commented that residents say this would lower the value of their homes, but they don’t have control on the other side of their property line. The street encroaches too much on people’s private backyards. He suggested it can be rearranged and not lose anything in the process. Chair Person asked about street light locations. Mr. Fulton responded that street light locations had not been determined. The conditions and locations would be reviewed by the Police Department. Commissioner Robertson asked the developer to comment on flipping the street location. Rob Eldridge, applicant, stated when they studied the site with their engineers they looked at different road layouts. It was generally a flat lot but not a flat neighborhood. The idea of flipping the road to go through Mr. Bowker’s area would require them to build it up eight feet, which would take out everything in the woods in the back side of the property. He explained when they looked at this, the road on the east side worked out best because if they went to the other side to meet City standards they would have to do more grading. This could be discussed as part of the final plat. He said they tried to entertain other ideas and didn’t know that Mr. Bowker's land was available to do this. Chair Person asked about the height of the foundations above the new street. Mr. Eldridge was unsure what the foundations were for the new street, but the foundations to his yard were about two-feet higher. It was a significant amount. They were open to the idea of putting a fence down that side. He said at one point he hoped to do a private road, making the road smaller and keeping it 15-20 feet from the side yard. He said when you start putting in a 50-foot wide road and try holding it off another 10-15 feet, it would shove the houses onto the other properties and affect both sides of the neighborhood. He liked the idea of one-sided parking and getting rid of eight feet of asphalt. It would probably change the drainage issues and give them other ideas to explore. Mr. Eldridge concluded by saying this is why they were doing the preliminary plat because there were issues to be worked out and discussed. Commissioner Morris asked about Hennepin County and City Engineer comments on the road configuration. Mr. Fulton replied that Hennepin County had some questions about the layout. The City Engineer, Scott Brink, believes it should be a public street and believed it was safe. He City Council Meeting of December 20, 2010 (Item 4l) Page 7 Subject: Planning Commission Minutes of October 6, 2010 did additional review as requested by Hennepin County. The county looks for 500 ft. stopping distance visually in both directions and they found that to be present on both the east and the west of the proposed road. Commissioner Morris asked if the road location needed to be changed, or did it just need to be tweaked. He said his concern was if they moved ahead with preliminary and found out the road needed to be moved which changed the lot configuration, other options might then be available. The Commission would only see it on the final plat at that point. Mr. Fulton stated that the City Engineer did not believe the road location needed to be changed. Commissioner Morris noted that in flipping the roadway and the cul-de-sac around, the cul-de-sac would be up against somebody’s backyard no matter how it is done. It won’t fit in the middle. He asked if it is a private road, does that allow it to be a 25-foot road with no parking. Mr. Fulton responded the subdivision ordinance has specific standards for both public and private streets. They could do a narrower private street. If the Planning Commission were to recommend a variance from the subdivision ordinance standards for roadway width, that would be something staff would need to review with the City Engineer and the Fire Marshall to make sure that would be an acceptable street. Commissioner Johnston-Madison said she understood the residents’ concerns, but the property owner had a right to redevelop the property. She said the developer had done a good job in configuring the property. She said she wanted to move preliminary plat forward with more discussion about the road and setbacks for the final plat. Commissioner Kramer said he agreed the developer had the right to do what they had proposed and it was consistent with the City vision. He said he was uncomfortable with the proximity to the houses on Cavell. He would like to see the street moved to the west by making it narrower. He didn’t like the idea of a fence rather than a view. Ms. McMonigal indicated staff would look at that with the City Engineer. An additional five feet would likely set the street 25 feet from the homes, which was the typical back yard setback. Commissioner Shapiro indicated they should keep it a public street, but shrink it 4-5 feet from east to west and have one side street parking to move it further from the houses. Ms. McMonigal noted staff would try to work with the City Engineer on the road issue prior to going to the City Council with the preliminary plat. She was not sure how quickly they would come back with the final plat. Commissioner Robertson commented that the east curb line of the road could move to the west. He also wanted to add discussions regarding a fence. Commissioner Morris asked for further discussion on the lighting. City Council Meeting of December 20, 2010 (Item 4l) Page 8 Subject: Planning Commission Minutes of October 6, 2010 Andrew Ford, youth member, said he felt the residents had a valid concern that the proposed house sizes didn’t fit in with the neighborhood. Commissioner Johnston-Madison made a motion to recommend approval of the Preliminary Plat, subject to conditions recommended by staff, with an amendment that a study be done on the road moving further to the west, with further discussion on consideration of a fence and location of lighting. Commissioner Robertson seconded the motion, and the motion as amended passed on a vote of 6-0-1 (Commissioner Carper abstained). 4. Other Business 5. Communications A. Ms. McMonigal noted there would be a study session meeting on October 20th to discuss the Business Park Zoning District and Eliot School design guidelines. B. Commissioner Robertson indicated he would like to follow up on the joint meeting the Planning Commission had with City Council. He said the meeting was good, but it did not accomplish what they set out to do when they requested a meeting with the City Council. They received three presentations and there was no dialogue between the two bodies. He said he wanted to reschedule another business type meeting for more dialogue. Ms. McMonigal stated there was a lot of information to cover which took a lot of time. Staff will work on another meeting date. C. Commissioners Carper and Johnston-Madison updated the Commission on the PMT railroad meeting held on October 2nd. The next meeting will be on November 9th. A joint meeting of the City Council and School Board will be held on November 29th to go over the 2009 rail study. Commissioner Johnston- Madison encouraged people to attend both meetings. 6. Adjournment The meeting was adjourned 7:30 p.m. Respectfully submitted, Amy Stegora-Peterson Recording Secretary Meeting Date: December 20, 2010 Agenda Item #: 4m OFFICIAL MINUTES PLANNING COMMISSION STUDY SESSION ST. LOUIS PARK, MINNESOTA October 20, 2010 – 6:00 p.m. COUNCIL CHAMBERS MEMBERS PRESENT: Lynne Carper, Andrew Ford, Claudia Johnston-Madison, Dennis Morris, Richard Person, Carol Robertson, Larry Shapiro MEMBERS ABSENT: Robert Kramer STAFF PRESENT: Adam Fulton, Sean Walther 1. Business Park Zoning District • Section 36-232 Restrictions and performance standards; general provisions Commissioner Johnston-Madison asked about restaurants and service. She asked if drive-through uses are allowed. She said she liked the requirements for the proposed district. Commissioner Robertson asked about loading docks. He suggested there may be a need to create administrative approval to allow these kinds of things. Commissioner Morris asked how many existing loading docks are non-conforming. Commissioner Johnston-Madison asked if there is a survey of existing non-conformities. Commissioner Carper suggested that item no. 8 (truck activity routes/pedestrian traffic) may need to be modified regarding safety issues. In reference to item no. 9b. (glare or heat), Commissioner Morris asked about the definition of “intense.” • Section 36-233 BP business park district Commissioner Johnston-Madison asked about aesthetics. She said it would be good if that could be strengthened with more explicit language about building exteriors, landscaping, green space and boulevards. There was a discussion about item (b) Permitted Uses and floor area ratio. Questions were raised about why office FAR is restricted but hotel FAR is not restricted. It was suggested that educational uses are not well defined and should be clarified in greater detail; such as colleges and vo-tech. Why must educational uses be located on the ground floor? Commissioners asked for more study on how the proposed 40 sq. ft. of outdoor area/student relates to DORA. Is 150 sq. ft. of outdoor area/adult necessary for the adult daycare use? City Council Meeting of December 20, 2010 (Item 4m) Page 2 Subject: Planning Commission Minutes of October 20, 2010 2. Cluster Housing Commissioner Robertson discussed the issue. He stated that removal of cluster housing from the Zoning Ordinance was done to prevent townhomes. He said it may be a good idea to pursue cluster housing in a different way. He said he would like to see a permitted density transfer, but not off one lot. He spoke about better site design. It would be detached housing only. Commissioner Johnston-Madison asked what the category could be called, detached townhouses? She said she would like staff to pursue the issue of cluster housing. It would work in cases where there is not enough frontage. Commissioner Robertson stated it would allow for more creative use of lots. Commissioner Morris spoke about maximizing open space and concentrating on building space. Commissioner Robertson said cluster housing should be permitted, perhaps with a CUP, and with review from the Planning Commission and City. Commissioners discussed potential conditions, including no attached townhomes, distance between units, and a DORA requirement. Commissioner Robertson said when the City Council deleted the provision in the first place, they did intend to come back and look at cluster housing in the future. Commissioner Person asked for recent examples of subdivisions where this could have been accomplished. Commissioner Robertson stated it shouldn’t just be a two-lot split. 3. Eliot School Design Guidelines Commissioner Robertson spoke about the task force and process, including neighborhood meetings. He spoke about the design guidelines and the site. He noted that architectural style will be very important to complement the neighborhood. He stated that senior housing would be great for the site. 4. Southwest Transit Workshop Commissioners Johnston-Madison, Morris, Person, and Robertson indicated they were interested in attending the workshop. Respectfully submitted, Nancy Sells Administrative Secretary Meeting Date: December 20, 2010 Agenda Item #: 4n OFFICIAL MINUTES PLANNING COMMISSION STUDY SESSION ST. LOUIS PARK, MINNESOTA November 17, 2010 – 6:00 p.m. COUNCIL CHAMBERS MEMBERS PRESENT: Lynne Carper, Claudia Johnston-Madison, Robert Kramer, Richard Person, Carl Robertson, Larry Shapiro MEMBERS ABSENT: Andrew Ford, Dennis Morris STAFF PRESENT: Adam Fulton, Sean Walther 1. 6:00 p.m. Business Park Zoning District Adam Fulton, Planner, introduced the item and explained that the review of the proposed Business Park zoning district that took place at the October Study Session ended with uses that were “permitted with conditions,” and that the remainder of the discussion included uses allowed as Conditional Uses, PUD, Accessory Uses, and Dimensional Standards. Commissioner Kramer noted that enclosed refuse handling for medical and dental laboratories was not necessary, as other regulations require the use to be well managed anyway. Commissioner Carper noted that it should be ensured that such uses have a low impact to the environment. The commissioners discussed the regulations for parking ramps and requested clarification on how the regulations would apply to ramps depending on how the ramps were sited within a parcel. Commissioners Kramer and Robertson discussed the height regulations for structures in the BP district, and requested that the minimum heights be increased to 55 feet and 110 feet to better accommodate the typical size of structures based on current construction practices. The commissioners discussed the concept of a minimum FAR and requested that it remain in the future ordinance. Commissioner Shapiro discussed the proposed setback regulations and requested that they be clarified to allow for the construction of patios between rights-of-way and buildings in the future zoning district. Other discussion items regarded elevator penthouses, LRT station area planning and schedule, and light industrial/low impact light industrial. City Council Meeting of December 20, 2010 (Item 4n) Page 2 Subject: Planning Commission Minutes of November 17, 2010 Mr. Fulton explained that the next step in the ordinance development process was to bring the ordinance to the group of business and property owners within the district and discuss the regulations with them. He stated that the meeting would probably occur sometime in December or early January. After that, the ordinance would be brought back to the Planning Commission. 2. 7:00 p.m. Review of upcoming Fire Station applications Sean Walther, Senior Planner, provided an update of the Fire Station application process. Applications include a CUP for fill at each station, a Plat at Station #1, and a street vacation at Station #1. Mr. Walther stated that it was likely that the applications would come before the Planning Commission for review on December 15th. 3. 7:15 p.m. ULI Southwest LRT workshop recap Commissioners discussed the recent ULI tour of the SW LRT line and the speakers following the tour. Commissioner Robertson led the discussion and talked about future steps that the Planning Commission might take to look at important issues surrounding the transit line. 4. 7:30 p.m. Additional Items Commissioners Johnston-Madison and Carper discussed the status of the freight rail issue. Commissioner Johnston-Madison raised several questions with Commissioner Shapiro about the future School Board review of the freight rail studies. 5. 7:40 p.m. Adjourn Respectfully submitted, Nancy Sells, Administrative Secretary Meeting Date: December 20, 2010 Agenda Item #: 4o Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Vendor Claims. RECOMMENDED ACTION: Motion to accept for filing Vendor Claims for the period November 6, 2010 through December 17, 2010. POLICY CONSIDERATION: Not applicable. BACKGROUND: The Finance Department prepares this report on a monthly basis for Council’s review. FINANCIAL OR BUDGET CONSIDERATION: None. VISION CONSIDERATION: Not applicable. Attachments: Vendor Claims Prepared by: Connie Neubeck, Account Clerk 12/15/2010CITY OF ST LOUIS PARK 9:44:03R55CKSUM LOG23000VO 1Page -Council Check Summary 12/17/2010 -11/6/2010 Vendor AmountBusiness Unit Object 240.00INSPECTIONS G & A LICENSES10,000 LAKES CHAPTER 240.00 7.35-PARK AND RECREATION BALANCE SH DUE TO OTHER GOVTS32-DEGREES INC 114.25ICE RESURFACER BLDG/STRUCTURE SUPPLIES 106.90 436.00SKATEBOARD PROGRAMS OTHER CONTRACTUAL SERVICES3RD LAIR SKATEPARK 436.00 227.37TREE MAINTENANCE GENERAL SUPPLIESA-1 OUTDOOR POWER INC 227.37 31.95STORM WATER UTILITY G&A OTHER IMPROVEMENT SERVICEAAA LAMBERTS LANDSCAPE PRODUCT 31.95 87.72SEWER UTILITY G&A EQUIPMENT PARTSABLE HOSE & RUBBER INC 87.72 1,353.00PRE-SCHOOL PROGRAMS OTHER CONTRACTUAL SERVICESABRAKADOODLE 1,353.00 2,330.00WATER UTILITY G&A OTHER CONTRACTUAL SERVICESACZ LABORATORIES INC 2,330.00 43,259.16REILLY BUDGET GENERAL PROFESSIONAL SERVICESAECOM INC 4,542.50MUNICIPAL BLDG BUILDINGS & STRUCTURES 47,801.66 117.55WATER UTILITY G&A GENERAL CUSTOMERSAFFINITY PLUS FCU 117.55 100.00ADMINISTRATION G & A RENTAL BUILDINGSALDERSGATE UNITED METHODIST CH 100.00 149.00ADMINISTRATION G & A SEMINARS/CONFERENCES/PRESENTATALLIANCE FOR INNOVATION 149.00 2,400.00PAVEMENT MANAGEMENT G&A COST REIMBURSEMENTALLIED BLACKTOP 3,708.00CONSTRUCTION MATERIALS IMPROVEMENTS OTHER THAN BUILDI 13,146.99CONSTRUCTION PAYMENTS IMPROVEMENTS OTHER THAN BUILDI 19,254.99 City Council Meeting of December 20, 2010 (Item No. 4o) Subject: Vendor Claims Page 2 12/15/2010CITY OF ST LOUIS PARK 9:44:03R55CKSUM LOG23000VO 2Page -Council Check Summary 12/17/2010 -11/6/2010 Vendor AmountBusiness Unit Object 310.70PARK IMPROVE CAPITAL PROJECT IMPROVEMENTS OTHER THAN BUILDIAMERICAN ENGINEERING TESTING I 310.70 65.47POLICE G & A TELEPHONEAMERICAN MESSAGING 65.47 911.85PARK AND RECREATION BALANCE SH INVENTORYAMERICAN TIRE DISTRIBUTORS 911.85 80.16FACILITIES MCTE G & A OPERATIONAL SUPPLIESAMERIPRIDE LINEN & APPAREL SER 53.44GENERAL BUILDING MAINTENANCE OPERATIONAL SUPPLIES 438.16PUBLIC WORKS OPS G & A OPERATIONAL SUPPLIES 266.57PARK MAINTENANCE G & A OPERATIONAL SUPPLIES 365.06ENTERPRISE G & A GENERAL SUPPLIES 241.18VEHICLE MAINTENANCE G&A OPERATIONAL SUPPLIES 217.21WATER UTILITY G&A OPERATIONAL SUPPLIES 217.21SEWER UTILITY G&A OPERATIONAL SUPPLIES 36.82STORM WATER UTILITY G&A OPERATIONAL SUPPLIES 1,915.81 2,238,084.96CONSTRUCTION PAYMENTS IMPROVEMENTS OTHER THAN BUILDIAMES CONSTRUCTION 2,238,084.96 1,360.73SUPPORT SERVICES G&A OFFICE SUPPLIESANCHOR PAPER CO 1,360.73 102.50COMMUNICATIONS/GV REIMBURSEABL REPAIRSANCOM COMMUNICATIONS INC 102.50 3,519.03FABRICATIONOTHER IMPROVEMENT SUPPLIESANDERSEN INC, EARL 3,519.03 255.00COMM DEV PLANNING G & A SUBSCRIPTIONS/MEMBERSHIPSAPA 255.00 601.71BUILDING MAINTENANCE GENERAL SUPPLIESAPACHE GROUP OF MINNESOTA 601.71 200.00SOLID WASTE RECYCLING GRANT OTHERAPOGEE RETAIL LLC 200.00 City Council Meeting of December 20, 2010 (Item No. 4o) Subject: Vendor Claims Page 3 12/15/2010CITY OF ST LOUIS PARK 9:44:03R55CKSUM LOG23000VO 3Page -Council Check Summary 12/17/2010 -11/6/2010 Vendor AmountBusiness Unit Object 763.70GENERAL CUSTODIAL DUTIES CLEANING/WASTE REMOVAL SUPPLYARAMARK UNIFORM CORP ACCTS 828.30ENTERPRISE G & A GENERAL SUPPLIES 1,592.00 25.00ENVIRONMENTAL G & A SUBSCRIPTIONS/MEMBERSHIPSARBOR DAY FOUNDATION 25.00 970.00ICE RESURFACER BUILDING MTCE SERVICEARENA SERVICES & PRODUCTS 970.00 2,559.87PARK AND RECREATION BALANCE SH INVENTORYASPEN EQUIPMENT CO 2,559.87 31.99COMMUNICATIONS/GV REIMBURSEABL TELEPHONEAT&T 31.99 186.25VEHICLE MAINTENANCE G&A CLEANING/WASTE REMOVAL SERVICEATOMIC RECYCLING 186.25 490.89PREVENTATIVE MAINTENANCE EQUIPMENT MTCE SERVICEAUTOMOBILE SERVICE 244.60GENERAL REPAIR EQUIPMENT MTCE SERVICE 735.49 95.54CABLE TV G & A OFFICE EQUIPMENTAVI SYSTEMS INC 95.54 350.00GREEN REMODELING PROGRAM OTHER CONTRACTUAL SERVICESBACHMAN, SHIRLEY 350.00 39.91FINANCE G & A OFFICE SUPPLIESBANKER'S EQUIPMENT SERVICE INC 39.91 156.00HUMAN RESOURCES GENERAL PROFESSIONAL SERVICESBARNA, GUZY & STEFFEN LTD 156.00 5,329.00STORM WATER UTILITY G&A GENERAL PROFESSIONAL SERVICESBARR ENGINEERING CO 9,148.10STORM WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 14,477.10 141.61BUILDING MAINTENANCE BLDG/STRUCTURE SUPPLIESBARTLEY SALES CO 924.47PARK IMPROVE CAPITAL PROJECT BUILDINGS & STRUCTURES 1,066.08 City Council Meeting of December 20, 2010 (Item No. 4o) Subject: Vendor Claims Page 4 12/15/2010CITY OF ST LOUIS PARK 9:44:03R55CKSUM LOG23000VO 4Page -Council Check Summary 12/17/2010 -11/6/2010 Vendor AmountBusiness Unit Object 5,000.00ESCROWSPMC ESCROWBARTMANN, KARI 5,000.00 21.36SANDING/SALTING EQUIPMENT PARTSBATTERIES PLUS 31.42BUILDING MAINTENANCE GENERAL SUPPLIES 115.40WATER UTILITY G&A GENERAL SUPPLIES 168.18 700.00SUPPORT SERVICES TRAININGBCA/TRAINING AND DEVELOPMENT 700.00 44,214.26PARK IMPROVE CAPITAL PROJECT BUILDINGS & STRUCTURESBECKER ARENA PRODUCTS 44,214.26 600.00PRE-SCHOOL PROGRAMS OTHER CONTRACTUAL SERVICESBEDARD, CHRISCELL 600.00 90.00INSPECTIONS G & A GENERAL SUPPLIESBELT LINE PROPERTIES INC 1,400.00GO BONDS-FIRE STATIONS G&A RENTAL BUILDINGS 1,490.00 46,875.00ESCROWSGENERALBENILDE-ST MARGARET'S SCHOOL 46,875.00 80.00PARK PAVILIONS PROGRAM REVENUEBENSON, AMY 80.00 101.57WATER UTILITY G&A GENERAL CUSTOMERSBERRES, JOHN 101.57 197.57PUBLIC WORKS G & A OFFICE SUPPLIESBERTELSON OFFICE PRODUCTS 197.57 116.00ORGANIZED REC G & A MILEAGE-PERSONAL CARBIRNO, RICK 116.00 45,780.00PARK IMPROVE CAPITAL PROJECT OTHER CONTRACTUAL SERVICESBITUMINOUS ROADWAYS INC 45,780.00 439.23NEIGHBORHOOD ASSOCIATION GRANT OTHER CONTRACTUAL SERVICESBJORGAARD, DEB 439.23 City Council Meeting of December 20, 2010 (Item No. 4o) Subject: Vendor Claims Page 5 12/15/2010CITY OF ST LOUIS PARK 9:44:03R55CKSUM LOG23000VO 5Page -Council Check Summary 12/17/2010 -11/6/2010 Vendor AmountBusiness Unit Object 128.64TREE DISEASE PUBLIC CLEANING/WASTE REMOVAL SERVICEBORRE, ROBERT 128.64 725.83POLICE G & A OPERATIONAL SUPPLIESBOUND TREE MEDICAL, LLC 725.83 666.57PARK AND RECREATION BALANCE SH INVENTORYBOYER TRUCK PARTS 666.57 160.50WATER UTILITY G&A GENERAL CUSTOMERSBRAUCH, CLARE 160.50 275.00INSPECTIONS G & A GENERAL SUPPLIESBRAUN INTERTEC CORPORATION 1,554.00ENGINEERING G & A ENGINEERING SERVICES 27,021.51GO BONDS-FIRE STATIONS G&A BUILDINGS & STRUCTURES 192.00CE MATERIALS TESTING IMPROVEMENTS OTHER THAN BUILDI 892.00SEWER UTILITY G&A OTHER CONTRACTUAL SERVICES 29,934.51 3,190.00SYSTEM REPAIR OTHER CONTRACTUAL SERVICESBROWN TRAFFIC PRODUCTS 3,190.00 793.69PARK IMPROVE CAPITAL PROJECT IMPROVEMENTS OTHER THAN BUILDIBRYAN ROCK PRODUCTS INC 793.69 80.37POLICE G & A OFFICE SUPPLIESBUDGET SIGN & GRAPHICS 2.50POLICE G & A POSTAGE 82.87 146.57WATER UTILITY G&A GENERAL CUSTOMERSBURBANK, SUSAN 146.57 140.00GENERAL REPAIR EQUIPMENT MTCE SERVICEC&E AUTO UPHOLSTERY 140.00 741.00OPERATIONSRADIO COMMUNICATIONSCALHOUN TOWERS APTS 741.00 17,594.29ADMINISTRATION G & A LEGAL SERVICESCAMPBELL KNUTSON PROF ASSOC 30.00FRANCHISE ADMINISTRATION LEGAL SERVICES 379.50GO BONDS-FIRE STATIONS G&A LEGAL SERVICES City Council Meeting of December 20, 2010 (Item No. 4o) Subject: Vendor Claims Page 6 12/15/2010CITY OF ST LOUIS PARK 9:44:03R55CKSUM LOG23000VO 6Page -Council Check Summary 12/17/2010 -11/6/2010 Vendor AmountBusiness Unit Object 690.00STREET CAPITAL PROJ G & A IMPROVEMENTS OTHER THAN BUILDI 750.00RIGHT-OF-WAY IMPROVEMENTS OTHER THAN BUILDI 214.38PAVEMENT MANAGEMENT G&A LEGAL SERVICES 330.00WATER UTILITY G&A LEGAL SERVICES 120.00REILLY G & A LEGAL SERVICES 20,108.17 11,200.00CAPITAL REPLACEMENT B/S PREPAID EXPENSESCARTEGRAPH SYSTEMS INC 11,200.00 1,029.19IT G & A EQUIPMENT MTCE SERVICECARTRIDGE CARE 1,029.19 208.33EMPLOYEE FLEX SPEND G&A GENERAL PROFESSIONAL SERVICESCBIZ BENEFITS & INSURANCE SERV 208.33 2,371.66TECHNOLOGY REPLACEMENT OFFICE EQUIPMENTCDW GOVERNMENT INC 2,371.66 14,661.96DISCOUNT LOAN PROGRAM OTHER CONTRACTUAL SERVICESCENTER ENERGY & ENVIRONMENT 4,334.03GREEN REMODELING PROGRAM OTHER CONTRACTUAL SERVICES 3,500.00MOVE-UP PROGRAM OTHER CONTRACTUAL SERVICES 124,919.00TRANSFORMATION LOAN OTHER CONTRACTUAL SERVICES 147,414.99 673.73FACILITY OPERATIONS HEATING GASCENTERPOINT ENERGY 169.13PARK MAINTENANCE G & A HEATING GAS 33.23WESTWOOD G & A HEATING GAS 33.85NATURALIST PROGRAMMER HEATING GAS 57.45GO BONDS-FIRE STATIONS G&A HEATING GAS 3,464.14WATER UTILITY G&A HEATING GAS 119.27REILLY G & A HEATING GAS 209.74SEWER UTILITY G&A HEATING GAS 4,760.54 2,174.48FACILITY OPERATIONS HEATING GASCENTERPOINT ENERGY SERVICES IN 5,129.72ENTERPRISE G & A HEATING GAS 7,304.20 1,108.24SUPPORT SERVICES G&A OFFICE SUPPLIESCENTRAL ENVELOPE CORPORATION 1,108.24 City Council Meeting of December 20, 2010 (Item No. 4o) Subject: Vendor Claims Page 7 12/15/2010CITY OF ST LOUIS PARK 9:44:03R55CKSUM LOG23000VO 7Page -Council Check Summary 12/17/2010 -11/6/2010 Vendor AmountBusiness Unit Object 10,150.00EMPLOYEE FLEXIBLE SPENDING B/S OTHER RETIREMENTCENTRAL PENSION FUND 10,150.00 61.86PARK AND RECREATION BALANCE SH INVENTORYCENTRAL STATES FIRE APPARATUS 3.98-PARK AND RECREATION BALANCE SH DUE TO OTHER GOVTS 57.88 385.00SOLID WASTE G&A OTHERCHINOOK BOOK 385.00 200.00GREEN REMODELING PROGRAM OTHER CONTRACTUAL SERVICESCHRISTENSEN, PATRICK 200.00 149.13PARK AND RECREATION BALANCE SH INVENTORYCHRYSLER JEEP 149.13 49.06GENERAL BUILDING MAINTENANCE GENERAL SUPPLIESCINTAS FIRST AID & SAFETY 49.06 21.81-GENERAL FUND BALANCE SHEET DUE TO OTHER GOVTSCITIZENS INDEPENDENT BANK 2.46ADMINISTRATION G & A GENERAL SUPPLIES 97.60ADMINISTRATION G & A POSTAGE 349.06ADMINISTRATION G & A MEETING EXPENSE 5.36HUMAN RESOURCES GENERAL SUPPLIES 1,310.79HUMAN RESOURCES ORGANIZATIONAL DEVELOPMENT 550.00HUMAN RESOURCES RECOGNITION 55.22HUMAN RESOURCES CITE 294.66HUMAN RESOURCES TRAINING 105.00COMM & MARKETING G & A TELEPHONE 52.78IT G & A TRAINING 350.00ASSESSING G & A TRAINING 50.00FINANCE G & A SEMINARS/CONFERENCES/PRESENTAT 200.00COMM DEV PLANNING G & A TRAINING 12.00COMM DEV PLANNING G & A MEETING EXPENSE 106.88POLICE G & A GENERAL SUPPLIES 50.00POLICE G & A OPERATIONAL SUPPLIES 58.99POLICE G & A OFFICE EQUIPMENT 22.45POLICE G & A POLICE EQUIPMENT 36.66POLICE G & A TRAINING 169.65Justice Assistance Grant -2005 SEMINARS/CONFERENCES/PRESENTAT 35.37OPERATIONSOFFICE SUPPLIES 345.99OPERATIONSGENERAL SUPPLIES City Council Meeting of December 20, 2010 (Item No. 4o) Subject: Vendor Claims Page 8 12/15/2010CITY OF ST LOUIS PARK 9:44:03R55CKSUM LOG23000VO 8Page -Council Check Summary 12/17/2010 -11/6/2010 Vendor AmountBusiness Unit Object 345.93OPERATIONSOPERATIONAL SUPPLIES 75.00OPERATIONSSUBSCRIPTIONS/MEMBERSHIPS 10.73OPERATIONSTRAINING 1,422.44OPERATIONSSEMINARS/CONFERENCES/PRESENTAT 19.95INSPECTIONS G & A GENERAL SUPPLIES 74.50PUBLIC WORKS G & A SUBSCRIPTIONS/MEMBERSHIPS 195.00PUBLIC WORKS G & A SEMINARS/CONFERENCES/PRESENTAT 11.84PUBLIC WORKS G & A BANK CHARGES/CREDIT CD FEES 230.00ENGINEERING G & A SEMINARS/CONFERENCES/PRESENTAT 71.23PUBLIC WORKS OPS G & A GENERAL SUPPLIES 352.82PARK AND RECREATION BALANCE SH INVENTORY 20.32-PARK AND RECREATION BALANCE SH DUE TO OTHER GOVTS 195.97ORGANIZED REC G & A GENERAL SUPPLIES 15.70ORGANIZED REC G & A OTHER CONTRACTUAL SERVICES 316.64ORGANIZED REC G & A TRAINING 30.05ORGANIZED REC G & A MEETING EXPENSE 47.30SOFTBALLGENERAL SUPPLIES 367.57HOLIDAY PROGRAMS GENERAL SUPPLIES 71.23PARK MAINTENANCE G & A GENERAL SUPPLIES 21.00PARK MAINTENANCE G & A TRAINING 191.46WW RENTAL HOUSE (1322)OTHER IMPROVEMENT SUPPLIES 12.00ENVIRONMENTAL G & A SEMINARS/CONFERENCES/PRESENTAT 45.10WESTWOOD G & A GENERAL SUPPLIES 127.53HALLOWEEN PARTY GENERAL SUPPLIES 96.55HALLOWEEN PARTY CONCESSION SUPPLIES 50.77BUILDING MAINTENANCE BLDG/STRUCTURE SUPPLIES 71.24VEHICLE MAINTENANCE G&A GENERAL SUPPLIES 2.73-CABLE TV BALANCE SHEET DUE TO OTHER GOVTS 12.86CABLE TV BUDGET GENERAL SUPPLIES 42.48CABLE TV G & A OTHER CONTRACTUAL SERVICES 17.75SENIOR VIDEO CLUB MEETING EXPENSE 88.00HOUSING REHAB G & A TRAINING 699.61PARK IMPROVE CAPITAL PROJECT IMPROVEMENTS OTHER THAN BUILDI 230.00WATER UTILITY G&A SEMINARS/CONFERENCES/PRESENTAT 230.00STORM WATER UTILITY G&A SEMINARS/CONFERENCES/PRESENTAT 67.79-EMPLOYEE FLEXIBLE SPENDING B/S DUE TO OTHER GOVTS 1,053.87EMPLOYEE FLEX SPEND G&A GENERAL PROFESSIONAL SERVICES 10,992.39 1,308.50CONCESSIONS/HOCKEY ASSOC CONCESSION SUPPLIESCOCA-COLA BOTTLING CO 1,308.50 City Council Meeting of December 20, 2010 (Item No. 4o) Subject: Vendor Claims Page 9 12/15/2010CITY OF ST LOUIS PARK 9:44:03R55CKSUM LOG23000VO 9Page -Council Check Summary 12/17/2010 -11/6/2010 Vendor AmountBusiness Unit Object 507.96INSTRUCTIONAL SKATING LESSONS OTHER CONTRACTUAL SERVICESCOLBORN, CHRISTINE 507.96 26,896.33ADMINISTRATION G & A LEGAL SERVICESCOLICH & ASSOCIATES 26,896.33 436.60EMPLOYEE FLEXIBLE SPENDING B/S WAGE GARNISHMENTSCOLLECTION SERVICES CENTER 436.60 130.00INSPECTIONS G & A CERTIFICATE OF COMPLIANCECOLLINS, ALISSA 130.00 35.37WATER UTILITY G&A GENERAL CUSTOMERSCOLLINS, AUDREY 35.37 159.95IT G & A DATACOMMUNICATIONSCOMCAST 159.95 642.78BUILDING MAINTENANCE BUILDING MTCE SERVICECOMMERCIAL STEAM TEAM 642.78 75.00ENGINEERING G & A TRAININGCOMMISSIONER OF TRANSPORTATION 400.00ENGINEERING G & A SEMINARS/CONFERENCES/PRESENTAT 84.20STREET CAPITAL PROJ G & A IMPROVEMENTS OTHER THAN BUILDI 150.74CE MATERIALS TESTING IMPROVEMENTS OTHER THAN BUILDI 709.94 13,557.59EMERGENCY REPAIR GRANT OTHER CONTRACTUAL SERVICESCOMMUNITY ACTION PARTNERSHIP S 13,557.59 25,000.00COMMUNITY INVOLVEMENT PROGRAM OTHER CONTRACTUAL SERVICESCOMMUNITY INVOLVEMENT PROGRAM 25,000.00 1,660.24BUILDING MAINTENANCE GENERAL SUPPLIESCONTINENTAL RESEARCH CORP 1,660.24 15.09-GENERAL FUND BALANCE SHEET DUE TO OTHER GOVTSCOOKE JP CO 234.54INSPECTIONS G & A GENERAL SUPPLIES 219.45 750.00INSPECTIONS G & A CERTIFICATE OF COMPLIANCECORNELIUS, SAM 750.00 City Council Meeting of December 20, 2010 (Item No. 4o) Subject: Vendor Claims Page 10 12/15/2010CITY OF ST LOUIS PARK 9:44:03R55CKSUM LOG23000VO 10Page -Council Check Summary 12/17/2010 -11/6/2010 Vendor AmountBusiness Unit Object 6,775.00POLICE G & A OTHER CONTRACTUAL SERVICESCORNERHOUSE 6,775.00 8,158.89POLICE G & A OTHER CONTRACTUAL SERVICESCORNERSTONE ADVOCACY SERVICE 8,158.89 162.50GREEN REMODELING PROGRAM OTHER CONTRACTUAL SERVICESCOWELL, DAN 162.50 369.15BUILDING MAINTENANCE BUILDING MTCE SERVICECRAWFORD DOOR SALES CO INC. 369.15 7.40-GENERAL FUND BALANCE SHEET DUE TO OTHER GOVTSCREATIVE PRODUCT SOURCING INC 115.10DARE PROGRAM OPERATIONAL SUPPLIES 107.70 1,433.41CONSTRUCTION MATERIAL GENERAL SUPPLIESCREST PRECAST INC 1,433.41 378.83POLICE G & A SUBSISTENCE SUPPLIESCUB FOODS 378.83 1,628.78SSD 1 G&A OTHER CONTRACTUAL SERVICESCUSTOM PRODUCTS & SERVICES 1,060.20SSD 2 G&A OTHER CONTRACTUAL SERVICES 718.20SSD 3 G&A OTHER CONTRACTUAL SERVICES 222.30SSD #4 G&A OTHER CONTRACTUAL SERVICES 3,629.48 956.31WATER UTILITY G&A OTHER IMPROVEMENT SERVICECUSTOM VALVE NUT REPLACEMENT 956.31 2,926.00TECHNOLOGY REPLACEMENT OFFICE EQUIPMENTD&B POWER ASSOCIATES INC 2,926.00 25,745.78WATER UTILITY G&A OTHER IMPROVEMENT SUPPLIESDAKOTA SUPPLY GROUP 2,273.38WATER UTILITY G&A OTHER CONTRACTUAL SERVICES 28,019.16 2,535.21GENERAL CUSTODIAL DUTIES CLEANING/WASTE REMOVAL SUPPLYDALCO ENTERPRISES INC 1,224.02BUILDING MAINTENANCE GENERAL SUPPLIES 3,759.23 City Council Meeting of December 20, 2010 (Item No. 4o) Subject: Vendor Claims Page 11 12/15/2010CITY OF ST LOUIS PARK 9:44:03R55CKSUM LOG23000VO 11Page -Council Check Summary 12/17/2010 -11/6/2010 Vendor AmountBusiness Unit Object 63.51WATER UTILITY G&A OFFICE SUPPLIESDAY-TIMERS INC 63.51 58.15GENERAL BUILDING MAINTENANCE EQUIPMENT PARTSDEKO FACTORY SERVICE INC 58.15 1,076.60OPERATIONSOPERATIONAL SUPPLIESDELTA MEDICAL SUPPLY GROUP INC 1,076.60 1,742.00PARK IMPROVE CAPITAL PROJECT IMPROVEMENTS OTHER THAN BUILDIDEMARS SIGNS INC 1,742.00 8,227.30INSPECTIONS G & A DUE TO OTHER GOVTSDEPT LABOR & INDUSTRY 90.00BUILDING MAINTENANCE LICENSES 8,317.30 462.20ENTERPRISE G & A ADVERTISINGDEX MEDIA EAST LLC 462.20 772.58WATER UTILITY G&A BLDG/STRUCTURE SUPPLIESDISCOUNT STEEL INC 772.58 10,007.00ELECTRICAL SYSTEM MTCE BUILDING MTCE SERVICEDJ ELECTRIC SERVICES INC 1,000.00SYSTEM REPAIR OTHER IMPROVEMENT SUPPLIES 2,029.80PARK BUILDING MAINTENANCE OTHER CONTRACTUAL SERVICES 693.23PARK EQUIPMENT MAINTENANCE OTHER CONTRACTUAL SERVICES 10,000.00PARK IMPROVE CAPITAL PROJECT BUILDINGS & STRUCTURES 4,630.38PARK IMPROVE CAPITAL PROJECT IMPROVEMENTS OTHER THAN BUILDI 28,360.41 52,627.33GO BONDS-FIRE STATIONS G&A BUILDINGS & STRUCTURESDLR GROUP KKE 52,627.33 5,082.29SUPPORT SERVICES G&A POSTAGEDO-GOOD.BIZ INC 5,082.29 243.14WESTWOOD G & A GENERAL SUPPLIESDON'S RODENTS 243.14 56.46E BYRNE JAG 2009-10 MEETING EXPENSEDREIER, LORI A 56.46 City Council Meeting of December 20, 2010 (Item No. 4o) Subject: Vendor Claims Page 12 12/15/2010CITY OF ST LOUIS PARK 9:44:03R55CKSUM LOG23000VO 12Page -Council Check Summary 12/17/2010 -11/6/2010 Vendor AmountBusiness Unit Object 684.13SPECIAL PROJECTS BLDG/STRUCTURE SUPPLIESDRYWALL SUPPLY INC 684.13 114.00ELECTRICAL SYSTEM MTCE BUILDING MTCE SERVICEDYMANYK ELECTRIC INC 114.00 25.36PARK IMPROVE CAPITAL PROJECT IMPROVEMENTS OTHER THAN BUILDIDYNAMIC FASTENER 25.36 3,206.31POLICE G & A EQUIPMENT MTCE SERVICEDYNAMIC IMAGING SYSTEMS INC 3,206.31 360.92ARENA MAINTENANCE BLDG/STRUCTURE SUPPLIESE-Z SHARP INC 360.92 6,645.00SPEC ASSMT CONSTRUCTION OTHER CONTRACTUAL SERVICESEARTH WIZARDS INC 6,645.00 15,000.00ESCROWSPMC ESCROWEATON VANCE MGMT 15,000.00 318.01WIRING REPAIR OTHER CONTRACTUAL SERVICESEGAN COMPANIES INC 1,509.73SYSTEM REPAIR OTHER CONTRACTUAL SERVICES 1,827.74 190.00ESCROWSGRECO DEVELOP/WOODDALE POINTEEHLERS & ASSOCIATES INC 1,377.50PPL LOUISIANA COURT OTHER CONTRACTUAL SERVICES 1,567.50 15,213.66SEWER UTILITY G&A OTHER IMPROVEMENT SERVICEELECTRIC PUMP INC 15,213.66 1,434.60OPERATIONSEMERGENCY PREPAREDNESSEMBEDDED SYSTEMS INC 1,434.60 462.84PARK AND RECREATION BALANCE SH INVENTORYEMERGENCY APPARATUS MTNCE 462.84 195.24PARK AND RECREATION BALANCE SH INVENTORYEMERGENCY AUTOMOTIVE TECHNOLOG 3.35-PARK AND RECREATION BALANCE SH DUE TO OTHER GOVTS 191.89 City Council Meeting of December 20, 2010 (Item No. 4o) Subject: Vendor Claims Page 13 12/15/2010CITY OF ST LOUIS PARK 9:44:03R55CKSUM LOG23000VO 13Page -Council Check Summary 12/17/2010 -11/6/2010 Vendor AmountBusiness Unit Object 8,133.45HUMAN RESOURCES GENERAL PROFESSIONAL SERVICESEMPLOYERS ASSOCIATION INC 8,133.45 847.63PARK AND RECREATION BALANCE SH INVENTORYENVIRONMENTAL EQUIPMENT & SERV 847.63 25.32PARK AND RECREATION BALANCE SH INVENTORYEQUIPMENT DISTRIBUTION MANAGEM 25.32 108.54IT G & A OFFICE SUPPLIESERS DIGITAL 108.54 42,760.69STORM WATER UTILITY G&A OTHER IMPROVEMENT SERVICEESS BROTHERS & SONS INC 42,760.69 34,132.86SOLID WASTE COLLECTIONS RECYCLING SERVICEEUREKA RECYCLING 34,132.86 950.24PARK AND RECREATION BALANCE SH INVENTORYFACTORY MOTOR PARTS CO 450.47VEHICLE MAINTENANCE G&A GENERAL SUPPLIES 202.47GENERAL REPAIR SMALL TOOLS 1,603.18 100.46BUILDING MAINTENANCE EQUIPMENT MTCE SERVICEFAIRMONT FIRE SYSTEMS INC 100.46 44.54POLICE G & A OTHER CONTRACTUAL SERVICESFEDEX 11.34POLICE G & A POSTAGE 27.18TASK FORCE REFUNDS & REIMBURSEMENTS 83.06 6,542.36WATER UTILITY G&A OTHER IMPROVEMENT SUPPLIESFERGUSON WATERWORKS 6,542.36 832.69ICE RESURFACER MOTOR FUELSFERRELLGAS 832.69 74.00WATER UTILITY G&A GENERAL CUSTOMERSFINE PROPERTIES OF MN LLP 74.00 328.83NEIGHBORHOOD ASSOCIATION GRANT OTHER CONTRACTUAL SERVICESFLANNIGAN, JANE City Council Meeting of December 20, 2010 (Item No. 4o) Subject: Vendor Claims Page 14 12/15/2010CITY OF ST LOUIS PARK 9:44:03R55CKSUM LOG23000VO 14Page -Council Check Summary 12/17/2010 -11/6/2010 Vendor AmountBusiness Unit Object 328.83 71.25NEIGHBORHOOD ASSOCIATION GRANT OTHER CONTRACTUAL SERVICESFLEETHAM, MIKE 71.25 20.54SANDING/SALTING EQUIPMENT PARTSFORCE AMERICA INC 926.80PARK AND RECREATION BALANCE SH INVENTORY 20.54VEHICLE MAINTENANCE G&A GENERAL SUPPLIES 967.88 12.00HUMAN RESOURCES TRAININGFOSSE, ALI 12.00 3,096.00STORM WATER UTILITY G&A IMPROVEMENTS OTHER THAN BUILDIFOTH INFRASTRUCTURE & ENVIRONM 3,096.00 176.40PUBLIC WORKS G & A OFFICE SUPPLIESFRANKLIN COVEY 176.40 372.17ENGINEERING G & A GENERAL SUPPLIESG S DIRECT 372.17 255.28GARAGE MTCE BUILDING MTCE SERVICEGARAGE DOOR STORE 264.75TRAININGOPERATIONAL SUPPLIES 577.12REILLY G & A OPERATIONAL SUPPLIES 48.09TRAININGOPERATIONAL SUPPLIES 1,145.24 35.00YOUTH PROGRAMS PROGRAM REVENUEGARCIA, MARY 35.00 57.20INSPECTIONS G & A PLUMBINGGENE'S WATER & SEWER INC. 57.20 5,200.00PARK IMPROVE CAPITAL PROJECT IMPROVEMENTS OTHER THAN BUILDIGLOBAL SPECIALTY CONTRACTORS I 62,134.58CONSTRUCTION PAYMENTS IMPROVEMENTS OTHER THAN BUILDI 67,334.58 3,938.72EMPLOYEE FLEXIBLE SPENDING B/S LONG TERM CARE INSURGLTC PREMIUM PAYMENTS 3,938.72 20.05WATER UTILITY G&A GENERAL CUSTOMERSGOLDBERG, RIVIAN City Council Meeting of December 20, 2010 (Item No. 4o) Subject: Vendor Claims Page 15 12/15/2010CITY OF ST LOUIS PARK 9:44:03R55CKSUM LOG23000VO 15Page -Council Check Summary 12/17/2010 -11/6/2010 Vendor AmountBusiness Unit Object 20.05 1,031.38WATER UTILITY G&A OTHER IMPROVEMENT SERVICEGOPHER STATE ONE-CALL INC 1,031.38 71.25REFORESTATION FUND OTHER CONTRACTUAL SERVICESGRAEBER, ANNA 71.25 135.91GENERAL BUILDING MAINTENANCE GENERAL SUPPLIESGRAINGER INC, WW 86.57GENERAL BUILDING MAINTENANCE BLDG/STRUCTURE SUPPLIES 85.16PARK BUILDING MAINTENANCE GENERAL SUPPLIES 17.89VEHICLE MAINTENANCE G&A GENERAL SUPPLIES 73.74WATER UTILITY G&A EQUIPMENT PARTS 399.27 517.50ELECTRICAL SYSTEM MTCE BUILDING MTCE SERVICEGRANITE LEDGE ELECTRICAL CONTR 2,025.00ROUTINE MAINTENANCE OTHER CONTRACTUAL SERVICES 836.00DAMAGE REPAIR OTHER CONTRACTUAL SERVICES 3,231.36WIRING REPAIR OTHER CONTRACTUAL SERVICES 745.00SYSTEM REPAIR OTHER CONTRACTUAL SERVICES 5,228.37INSTALLATIONOTHER CONTRACTUAL SERVICES 12,583.23 1,821.99GROUNDS MTCE LANDSCAPING MATERIALSGREEN ACRES SPRINKLER CO 1,821.99 600.00IT G & A COMPUTER SERVICESGREEN, HOWARD R COMPANY 600.00 350.00GREEN REMODELING PROGRAM OTHER CONTRACTUAL SERVICESGREG, RACHEL 350.00 119.24DARE PROGRAM OPERATIONAL SUPPLIESGRONSKI, PAM 119.24 450.00MOVE-UP PROGRAM OTHER CONTRACTUAL SERVICESGUNSTAD, MARK 450.00 400.00FOOTBALLOTHER CONTRACTUAL SERVICESHAMILTON, MIKE 400.00 4,000.00STORM WATER UTILITY G&A SUBSCRIPTIONS/MEMBERSHIPSHAMLINE UNIVERSITY City Council Meeting of December 20, 2010 (Item No. 4o) Subject: Vendor Claims Page 16 12/15/2010CITY OF ST LOUIS PARK 9:44:03R55CKSUM LOG23000VO 16Page -Council Check Summary 12/17/2010 -11/6/2010 Vendor AmountBusiness Unit Object 4,000.00 26.18WESTWOOD G & A OFFICE SUPPLIESHASLERUD, CARRIE 41.00WESTWOOD G & A MILEAGE-PERSONAL CAR 67.18 10,773.14WATER UTILITY G&A OPERATIONAL SUPPLIESHAWKINS INC 10,773.14 150.00GREEN REMODELING PROGRAM OTHER CONTRACTUAL SERVICESHEARNE, STEVE 150.00 315.52WESTWOOD G & A GENERAL SUPPLIESHEGNA, JESSICA 140.50WESTWOOD G & A MILEAGE-PERSONAL CAR 456.02 225.00BASKETBALLOTHER CONTRACTUAL SERVICESHENDERSON, TRACY 225.00 379.74ADMINISTRATION G & A POSTAGEHENNEPIN COUNTY ELECTIONS 379.74 924.28IT G & A COMPUTER SERVICESHENNEPIN COUNTY INFO TECH 1,000.00ASSESSING G & A SUBSCRIPTIONS/MEMBERSHIPS 2,240.00POLICE G & A EQUIPMENT MTCE SERVICE 800.00OPERATIONSRADIO COMMUNICATIONS 256.00OPERATIONSEMERGENCY PREPAREDNESS 5,220.28 1,813.60POLICE G & A SUBSISTENCE SERVICEHENNEPIN COUNTY SHERIFFS ACCTG 1,813.60 119.00ASSESSING G & A SUBSCRIPTIONS/MEMBERSHIPSHENNEPIN COUNTY TAXPAYER SERVI 119.00 2,097.00POLICE G & A SUBSISTENCE SERVICEHENNEPIN COUNTY TREASURER 418.05PARK MAINTENANCE G & A GARBAGE/REFUSE SERVICE 87,915.00HOUSING REHAB BALANCE SHEET DUE TO OTHER GOVTS 90,430.05 70.36OFFICE EQUIP MTCE BLDG/STRUCTURE SUPPLIESHENRICKSEN PSG 70.36 City Council Meeting of December 20, 2010 (Item No. 4o) Subject: Vendor Claims Page 17 12/15/2010CITY OF ST LOUIS PARK 9:44:03R55CKSUM LOG23000VO 17Page -Council Check Summary 12/17/2010 -11/6/2010 Vendor AmountBusiness Unit Object 6,675.00WATER UTILITY G&A OTHER IMPROVEMENT SERVICEHIGHVIEW PLUMBING INC 6,675.00 115.37SPECIAL PROJECTS BLDG/STRUCTURE SUPPLIESHIRSHFIELDS 115.37 2,000.00ESCROWSDEMO / BROOKSIDE TRAFFICHOGAN, BRIAN 2,000.00 40.78GENERAL BUILDING MAINTENANCE BLDG/STRUCTURE SUPPLIESHOME DEPOT CREDIT SERVICES 490.59SPECIAL PROJECTS GENERAL SUPPLIES 7.45ROUTINE MAINTENANCE GENERAL SUPPLIES 114.71ROUTINE MAINTENANCE SMALL TOOLS 85.07SNOW PLOWING GENERAL SUPPLIES 37.23MIXING SAND AND SALT GENERAL SUPPLIES 365.97PARK MAINTENANCE G & A GENERAL SUPPLIES 112.86PARK BUILDING MAINTENANCE GENERAL SUPPLIES 173.34PARK BUILDING MAINTENANCE OTHER IMPROVEMENT SUPPLIES 48.80PARK IMPROVE CAPITAL PROJECT BUILDINGS & STRUCTURES 94.95PARK IMPROVE CAPITAL PROJECT IMPROVEMENTS OTHER THAN BUILDI 20.32WATER UTILITY G&A SMALL TOOLS 43.62WATER UTILITY G&A BLDG/STRUCTURE SUPPLIES 14.85WATER UTILITY G&A BUILDING MTCE SERVICE 15.45WATER UTILITY G&A EQUIPMENT MTCE SERVICE 189.67REILLY BUDGET BUILDING MTCE SERVICE 14.93SEWER UTILITY G&A GENERAL SUPPLIES 42.88STORM WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 1,913.47 287.95WW RENTAL HOUSE (1322)OTHER IMPROVEMENT SUPPLIESHOME DEPOT CREDIT SRVCS 159.24WESTWOOD G & A GENERAL SUPPLIES 209.72WESTWOOD G & A SMALL TOOLS 35.94WESTWOOD G & A OTHER IMPROVEMENT SUPPLIES 692.85 8.12GENERAL BUILDING MAINTENANCE GENERAL SUPPLIESHOME HARDWARE 10.31POLICE G & A OPERATIONAL SUPPLIES 10.24ENGINEERING G & A GENERAL SUPPLIES 179.40PARK MAINTENANCE G & A GENERAL SUPPLIES 31.73BUILDING MAINTENANCE GENERAL SUPPLIES 21.87WATER UTILITY G&A GENERAL SUPPLIES City Council Meeting of December 20, 2010 (Item No. 4o) Subject: Vendor Claims Page 18 12/15/2010CITY OF ST LOUIS PARK 9:44:03R55CKSUM LOG23000VO 18Page -Council Check Summary 12/17/2010 -11/6/2010 Vendor AmountBusiness Unit Object 12.80WATER UTILITY G&A BLDG/STRUCTURE SUPPLIES 17.58SEWER UTILITY G&A GENERAL SUPPLIES 21.88STORM WATER UTILITY G&A GENERAL SUPPLIES 6.39STORM WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 320.32 115.00ASSESSING G & A MILEAGE-PERSONAL CARHOPPE, MARK 115.00 100.00KICKBALLOTHER CONTRACTUAL SERVICESHOWES, JEFFREY 100.00 150.00KICKBALLOTHER CONTRACTUAL SERVICESHOWES, KRISTINE 150.00 144.33WESTWOOD G & A GENERAL SUPPLIESHSBC BUSINESS SOLUTIONS 17.05WESTWOOD G & A CONCESSION SUPPLIES 17.04WESTWOOD G & A OTHER IMPROVEMENT SUPPLIES 29.46HALLOWEEN PARTY GENERAL SUPPLIES 17.14-HALLOWEEN PARTY CONCESSION SUPPLIES 93.78SCHOOL GROUPS GENERAL SUPPLIES 284.52 2,500.00ESCROWSDEMO / BROOKSIDE TRAFFICHUCHMAN, PAUL 2,500.00 1,570.25EMPLOYEE FLEXIBLE SPENDING B/S UNION DUESI.U.O.E. LOCAL NO 49 1,570.25 45.00HUMAN RESOURCES RECRUITMENTI/O SOLUTIONS INC 45.00 102.00INSPECTIONS G & A LICENSESIAEI 102.00 3,567.00INSPECTIONS G & A TRAININGICC 3,567.00 15.74-PARK AND RECREATION BALANCE SH DUE TO OTHER GOVTSICE SKATING INST AMERICA 244.74INSTRUCTIONAL SKATING LESSONS GENERAL SUPPLIES 229.00 City Council Meeting of December 20, 2010 (Item No. 4o) Subject: Vendor Claims Page 19 12/15/2010CITY OF ST LOUIS PARK 9:44:03R55CKSUM LOG23000VO 19Page -Council Check Summary 12/17/2010 -11/6/2010 Vendor AmountBusiness Unit Object 1,854.56WATER UTILITY G&A OTHER IMPROVEMENT SERVICEIDEAL SERVICE INC 1,854.56 1,464.00TECHNOLOGY REPLACEMENT EQUIPMENT MTCE SERVICEIDENTISYS 1,464.00 2,422.08IT G & A EQUIPMENT MTCE SERVICEIKON OFFICE SOLUTIONS 2,422.08 2,309.90CABLE TV G & A OTHER CONTRACTUAL SERVICESIMPLEX.NET INC 2,309.90 46.35WATER UTILITY G&A GENERAL SUPPLIESINDELCO 16.72WATER UTILITY G&A EQUIPMENT PARTS 42.00STORM WATER UTILITY G&A EQUIPMENT PARTS 105.07 38.51ADMINISTRATION G & A OFFICE SUPPLIESINNOVATIVE OFFICE SOLUTIONS 38.51 1,021.71PARK IMPROVE CAPITAL PROJECT BUILDINGS & STRUCTURESINNOVATIVE SURFACES 1,021.71 75.00POLICE G & A TRAININGINSIDE THE TAPE 75.00 2,408.61IT G & A TELEPHONEINTEGRA TELECOM 2,408.61 288.56POLICE G & A OPERATIONAL SUPPLIESINTOXIMETERS INC 265.24POLICE G & A POLICE EQUIPMENT 553.80 760.56PARK AND RECREATION BALANCE SH INVENTORYINVER GROVE FORD 5,096.73GENERAL REPAIR EQUIPMENT MTCE SERVICE 5,857.29 89.51ADMINISTRATION G & A GENERAL PROFESSIONAL SERVICESIRON MOUNTAIN 63.74POLICE G & A OTHER CONTRACTUAL SERVICES 153.25 240.00ENVIRONMENTAL G & A SUBSCRIPTIONS/MEMBERSHIPSISA City Council Meeting of December 20, 2010 (Item No. 4o) Subject: Vendor Claims Page 20 12/15/2010CITY OF ST LOUIS PARK 9:44:03R55CKSUM LOG23000VO 20Page -Council Check Summary 12/17/2010 -11/6/2010 Vendor AmountBusiness Unit Object 240.00 261.54ADMINISTRATION G & A RENTAL EQUIPMENTJ & F REDDY RENTS 261.54 72.84WATER UTILITY G&A GENERAL CUSTOMERSJ&D 14-93 LP 72.84 5,000.00ESCROWSDEMO / BROOKSIDE TRAFFICJAKE'S EXCAVATING 5,000.00 899.00OPERATIONSEQUIPMENT PARTSJEFFERSON FIRE & SAFETY INC 899.00 18.23SYSTEM REPAIR OTHER IMPROVEMENT SUPPLIESJERRY'S MIRACLE MILE 4.61VEHICLE MAINTENANCE G&A GENERAL SUPPLIES 44.78GENERAL REPAIR GENERAL SUPPLIES 210.62BLDG/GROUNDS OPS & MAINT BLDG/STRUCTURE SUPPLIES 7.97WATER UTILITY G&A GENERAL SUPPLIES 286.21 225.69IRRIGATION MAINTENANCE GENERAL SUPPLIESJOHN DEERE LANDSCAPES/LESCO 225.69 173.75WATER UTILITY G&A EQUIPMENT MTCE SERVICEJOHN HENRY FOSTER MN 173.75 200.00GREEN REMODELING PROGRAM OTHER CONTRACTUAL SERVICESJOHNSON, DEREK 200.00 160.86WESTWOOD G & A GENERAL SUPPLIESJOHNSON, DICK 160.86 100.00KICKBALLOTHER CONTRACTUAL SERVICESJOHNSON, KYLE 100.00 64.91WESTWOOD G & A GENERAL SUPPLIESJOHNSON, ROGER 64.91 172,808.50MUNICIPAL BLDG BUILDINGS & STRUCTURESJORGENSON CONSTRUCTION INC 172,808.50 City Council Meeting of December 20, 2010 (Item No. 4o) Subject: Vendor Claims Page 21 12/15/2010CITY OF ST LOUIS PARK 9:44:03R55CKSUM LOG23000VO 21Page -Council Check Summary 12/17/2010 -11/6/2010 Vendor AmountBusiness Unit Object 151.72WESTWOOD G & A GENERAL SUPPLIESJRK SEED & SURG SUPPLY 151.72 908.00WATER UTILITY G&A BUILDING MTCE SERVICEJUST-RITE CONSTRUCTION INC 908.00SEWER UTILITY G&A BUILDING MTCE SERVICE 908.00STORM WATER UTILITY G&A BUILDING MTCE SERVICE 2,724.00 4,500.00ESCROWSPMC ESCROWKCR HOMES LLC 4,500.00 553.84EMPLOYEE FLEXIBLE SPENDING B/S WAGE GARNISHMENTSKELLER, JASMINE Z 553.84 3,492.00ESCROWSDuke Realty - West EndKENNEDY & GRAVEN 1,136.00ESCROWSBADER DEV/ELLIPSE APTS 144.00ESCROWSGRECO DEVELOP/WOODDALE POINTE 997.50HOUSING REHAB G & A LEGAL SERVICES 5,769.50 2,500.00ESCROWSDEMO / BROOKSIDE TRAFFICKEVITT EXCAVATING INC 15,410.00SPEC ASSMT CONSTRUCTION OTHER CONTRACTUAL SERVICES 17,910.00 485.63NEIGHBORHOOD ASSOCIATION GRANT OTHER CONTRACTUAL SERVICESKILMER NEIGHBORHOOD ASSOC 485.63 2,800.00CE INSPECTION OTHER CONTRACTUAL SERVICESKLM ENGINEERING INC. 2,800.00 60.25REFORESTATION FUND OTHER CONTRACTUAL SERVICESKNUDSON, VICKY 60.25 37.00PRE-SCHOOL PROGRAMS PROGRAM REVENUEKOTTKE, KATHRYN 37.00 324.21WEED CONTROL WEED CUTTINGKOZLOWSKI, JAMES 324.21 5,583.32PARK IMPROVE CAPITAL PROJECT IMPROVEMENTS OTHER THAN BUILDIKRECH, O'BRIEN, MUELLER & WASS 5,583.32 City Council Meeting of December 20, 2010 (Item No. 4o) Subject: Vendor Claims Page 22 12/15/2010CITY OF ST LOUIS PARK 9:44:03R55CKSUM LOG23000VO 22Page -Council Check Summary 12/17/2010 -11/6/2010 Vendor AmountBusiness Unit Object 599.03SUPPORT SERVICES OTHER CONTRACTUAL SERVICESKRUELLE, BRYAN 599.03 119.00VEHICLE MAINTENANCE G&A EQUIPMENT MTCE SERVICEKRUGE-AIR INC 119.00 35.00INSPECTIONS G & A TRAININGKUBE, CLARK 35.00 412.50GREEN REMODELING PROGRAM OTHER CONTRACTUAL SERVICESLAIS, CHERYL 412.50 61.63SEALCOAT PREPARATION OTHER IMPROVEMENT SUPPLIESLAKES GAS CO 61.63 279.99PARK IMPROVE CAPITAL PROJECT OTHER CONTRACTUAL SERVICESLAMPERT YARDS INC 279.99 347.55ELECTRICAL SYSTEM MTCE BLDG/STRUCTURE SUPPLIESLARSON, JH CO 935.19RELAMPINGOTHER IMPROVEMENT SUPPLIES 1,147.24BUILDING MAINTENANCE BLDG/STRUCTURE SUPPLIES 2,429.98 3,334.50TREE REPLACEMENT TREE REPLACEMENTLAUREL TREE FARMS 3,334.50 2,268.00EMPLOYEE FLEXIBLE SPENDING B/S UNION DUESLAW ENFORCEMENT LABOR SERVICES 2,268.00 131.86PARK AND RECREATION BALANCE SH INVENTORYLAWSON PRODUCTS INC 156.67VEHICLE MAINTENANCE G&A GENERAL SUPPLIES 288.53 1,125.00STORM WATER UTILITY G&A SEMINARS/CONFERENCES/PRESENTATLEAGUE OF MINNESOTA CITIES 1,125.00 33,902.95UNINSURED LOSS G&A UNINSURED LOSSLEAGUE OF MN CITIES INS TRUST 33,902.95 113,707.25EMPLOYEE FLEX SPEND G&A League of MN Cities dept'l expLEAGUE OF MN CITIES INSURANCE 310.00UNINSURED LOSS G&A UNINSURED LOSS 114,017.25 City Council Meeting of December 20, 2010 (Item No. 4o) Subject: Vendor Claims Page 23 12/15/2010CITY OF ST LOUIS PARK 9:44:03R55CKSUM LOG23000VO 23Page -Council Check Summary 12/17/2010 -11/6/2010 Vendor AmountBusiness Unit Object 961.88HUMAN RESOURCES ORGANIZATIONAL DEVELOPMENTLEARNING JOURNEYS 961.88 38.27SUPPORT SERVICES OTHER CONTRACTUAL SERVICESLEASE, GREG 38.27 506.88PARK IMPROVE CAPITAL PROJECT IMPROVEMENTS OTHER THAN BUILDILEGEND TECHNICAL SERVICES 506.88 496.00INSTRUCTIONAL SKATING LESSONS OTHER CONTRACTUAL SERVICESLENTNER, LAURA 496.00 112.50POLICE G & A OPERATIONAL SUPPLIESLESSARD, MICHAEL 112.50 144.90POLICE G & A OTHER CONTRACTUAL SERVICESLEXISNEXIS 144.90 76.00INSPECTIONS G & A CERTIFICATE OF COMPLIANCELINDBERG, MARK 76.00 253.34ADMINISTRATION G & A LIQUORLIQUOR BARREL 253.34 65.67PARK AND RECREATION BALANCE SH INVENTORYLITTLE FALLS MACHINE INC 65.67 414.81IT G & A TELEPHONELOGIS 39,969.00IT G & A COMPUTER SERVICES 50.00SUPPORT SERVICES G&A COMPUTER SERVICES 16,039.01TECHNOLOGY REPLACEMENT COMPUTER SERVICES 56,472.82 162.50GREEN REMODELING PROGRAM OTHER CONTRACTUAL SERVICESLOVETANG, TOM 162.50 537.68PARK AND RECREATION BALANCE SH INVENTORYLOWELL'S REFINISH MASTERS 537.68 20.00MEETINGSTRAININGLTAP/MTU 20.00 City Council Meeting of December 20, 2010 (Item No. 4o) Subject: Vendor Claims Page 24 12/15/2010CITY OF ST LOUIS PARK 9:44:03R55CKSUM LOG23000VO 24Page -Council Check Summary 12/17/2010 -11/6/2010 Vendor AmountBusiness Unit Object 564.31PARK AND RECREATION BALANCE SH INVENTORYLUBRICATION TECHNOLOGIES INC 95.00VEHICLE MAINTENANCE G&A CLEANING/WASTE REMOVAL SUPPLY 659.31 3,840.02ACCIDENT REPAIR EQUIPMENT MTCE SERVICEMAACO AUTO PAINTING 3,840.02 132.48PARK AND RECREATION BALANCE SH INVENTORYMACQUEEN EQUIP CO 357.26SKATING RINK MAINTENANCE GENERAL SUPPLIES 489.74 462.40FITNESS PROGRAMS OTHER CONTRACTUAL SERVICESMALONE, DANIEL 462.40 257.46SSD 1 G&A OTHER CONTRACTUAL SERVICESMAPLE CREST LANDSCAPE 257.46SSD 2 G&A OTHER CONTRACTUAL SERVICES 257.46SSD 3 G&A OTHER CONTRACTUAL SERVICES 257.46SSD #4 G&A OTHER CONTRACTUAL SERVICES 482.75SSD #5 G&A OTHER CONTRACTUAL SERVICES 1,512.59 222.81PUBLIC WORKS OPS G & A OFFICE SUPPLIESMARS CO, W P & R S 222.81PARK MAINTENANCE G & A OFFICE SUPPLIES 222.81WATER UTILITY G&A OFFICE SUPPLIES 668.43 300.00BASKETBALLOTHER CONTRACTUAL SERVICESMASICA, BRENTON 300.00 425.00GENERAL BUILDING MAINTENANCE BUILDING MTCE SERVICEMASON-CUTTERS 425.00 138.38FINANCE G & A GENERAL SUPPLIESMATRIX LASER CARE INC 138.38 213.76STORM WATER UTILITY G&A OTHER IMPROVEMENT SERVICEMCCROSSAN INC, C S 213.76 1,000.00ESCROWSPMC ESCROWMCKEON, MICHAEL 1,000.00 City Council Meeting of December 20, 2010 (Item No. 4o) Subject: Vendor Claims Page 25 12/15/2010CITY OF ST LOUIS PARK 9:44:03R55CKSUM LOG23000VO 25Page -Council Check Summary 12/17/2010 -11/6/2010 Vendor AmountBusiness Unit Object 88.34REFORESTATION FUND OTHER CONTRACTUAL SERVICESMELANDER, ADRI 88.34 13.94DAMAGE REPAIR BLDG/STRUCTURE SUPPLIESMENARDS 120.61PARK MAINTENANCE G & A GENERAL SUPPLIES 81.93PARK BUILDING MAINTENANCE GENERAL SUPPLIES 56.90WW RENTAL HOUSE (1322)OTHER IMPROVEMENT SUPPLIES 117.38WESTWOOD G & A GENERAL SUPPLIES 21.33-HALLOWEEN PARTY GENERAL SUPPLIES 35.87PARK IMPROVE CAPITAL PROJECT BUILDINGS & STRUCTURES 24.28WATER UTILITY G&A BUILDING MTCE SERVICE 429.58 14,720.63SEWER UTILITY G&A GENERAL CUSTOMERSMETHODIST HOSPITAL 14,720.63 2,000.00BASKETBALLGENERAL SUPPLIESMETRO ATHLETIC SUPPLY 1,519.71BASKETBALLGENERAL SUPPLIES 3,519.71 1,272.00VOLLEYBALLOTHER CONTRACTUAL SERVICESMETRO VOLLEYBALL OFFICIALS 1,272.00 35,343.00INSPECTIONS G & A DUE TO OTHER GOVTSMETROPOLITAN COUNCIL 298,059.29WATER UTILITY BALANCE SHEET PREPAID EXPENSES 303,683.28OPERATIONSCLEANING/WASTE REMOVAL SERVICE 637,085.57 32.13WATER UTILITY G&A OFFICE SUPPLIESMICRO CENTER 32.13 634.03PATCHING-PERMANENT OTHER IMPROVEMENT SUPPLIESMIDWEST ASPHALT CORP 16,700.00PARK IMPROVE CAPITAL PROJECT OTHER CONTRACTUAL SERVICES 1,545.10WATER UTILITY G&A OTHER IMPROVEMENT SUPPLIES 18,879.13 490.88POLICE G & A OPERATIONAL SUPPLIESMIDWEST BADGE & NOVELTY CO 490.88 158.81-WATER UTILITY BALANCE SHEET DUE TO OTHER GOVTSMIDWEST TESTING LLC 5,078.81WATER UTILITY G&A OTHER CONTRACTUAL SERVICES 4,920.00 City Council Meeting of December 20, 2010 (Item No. 4o) Subject: Vendor Claims Page 26 12/15/2010CITY OF ST LOUIS PARK 9:44:03R55CKSUM LOG23000VO 26Page -Council Check Summary 12/17/2010 -11/6/2010 Vendor AmountBusiness Unit Object 35.00YOUTH PROGRAMS PROGRAM REVENUEMIKLYA, ANNE 35.00 59,195.00SYSTEM REPAIR OTHER IMPROVEMENT SUPPLIESMILLERBERND MFG CO 59,195.00 395.76STORM WATER UTILITY G&A EQUIPMENT PARTSMINING AUGER & TOOL WKS INC 395.76 375.00ASSESSING G & A SUBSCRIPTIONS/MEMBERSHIPSMINNEAPOLIS AREA ASSOC REALTOR 375.00 339.00PAWN FEES OTHER CONTRACTUAL SERVICESMINNEAPOLIS FINANCE DEPT 339.00 160.00HOLIDAY PROGRAMS GENERAL SUPPLIESMINNEAPOLIS OXYGEN CO 160.00 145.24EMPLOYEE FLEXIBLE SPENDING B/S ACCRUED OTHER BENEFITSMINNESOTA BENEFIT ASSOC 145.24 2,516.57EMPLOYEE FLEXIBLE SPENDING B/S WAGE GARNISHMENTSMINNESOTA CHILD SUPPORT PYT CT 2,516.57 60.00SPECIAL EVENTS OTHER CONTRACTUAL SERVICESMINNESOTA DEPT AGRICULTURE 25.00ENVIRONMENTAL G & A OTHER IMPROVEMENT SUPPLIES 85.00 21,575.00WATER UTILITY G&A OTHER CONTRACTUAL SERVICESMINNESOTA DEPT HEALTH 21,575.00 90.00BOILER MTCE LICENSESMINNESOTA DEPT LABOR & INDUSTR 100.00BUILDING MAINTENANCE LICENSES 80.00WATER UTILITY G&A LICENSES 270.00 16.00EMPLOYEE FLEXIBLE SPENDING B/S ACCRUED OTHER BENEFITSMINNESOTA NCPERS LIFE INS 16.00 210.00INSPECTIONS G & A CERTIFICATE OF COMPLIANCEMINNESOTA REMODELING & RESTORA 210.00 City Council Meeting of December 20, 2010 (Item No. 4o) Subject: Vendor Claims Page 27 12/15/2010CITY OF ST LOUIS PARK 9:44:03R55CKSUM LOG23000VO 27Page -Council Check Summary 12/17/2010 -11/6/2010 Vendor AmountBusiness Unit Object 213.96STORM WATER UTILITY G&A EQUIPMENT PARTSMINNESOTA WANNER COMPANY 213.96 643.64SUPPORT SERVICES G&A OFFICE SUPPLIESMINUTEMAN PRESS 69.96WATER UTILITY G&A OFFICE SUPPLIES 69.96SEWER UTILITY G&A OFFICE SUPPLIES 69.96SOLID WASTE COLLECTIONS OFFICE SUPPLIES 69.96STORM WATER UTILITY G&A OFFICE SUPPLIES 923.48 10.26WATER UTILITY G&A EQUIPMENT PARTSMINVALCO INC 10.26 20.67-GENERAL FUND BALANCE SHEET DUE TO OTHER GOVTSMITOGRAPHERS INC 321.38INSPECTIONS G & A GENERAL SUPPLIES 300.71 20.00BOILER MTCE LICENSESMN DEPT LABOR & INDUSTRY 20.00 570.71OPERATIONSTRAININGMNFIAM BOOK SALES 570.71 25.00OPERATIONSSUBSCRIPTIONS/MEMBERSHIPSMNIAAI 25.00 462.92OPERATIONSTRAININGMNSCU MRTC 462.92 290.00HUMAN RESOURCES TRAININGMOBIUS INC 290.00ORGANIZED REC G & A TRAINING 580.00 30.00HUMAN RIGHTS GENERAL SUPPLIESMORGAN, STUART 30.00 7,500.00ESCROWSPMC ESCROWMORREIM, MATTHEW & MEGAN 7,500.00 300.00HUMAN RESOURCES SUBSCRIPTIONS/MEMBERSHIPSMPELRA 300.00 City Council Meeting of December 20, 2010 (Item No. 4o) Subject: Vendor Claims Page 28 12/15/2010CITY OF ST LOUIS PARK 9:44:03R55CKSUM LOG23000VO 28Page -Council Check Summary 12/17/2010 -11/6/2010 Vendor AmountBusiness Unit Object 318.00PUBLIC WORKS G & A SUBSCRIPTIONS/MEMBERSHIPSMSPE 318.00 1,071.71PARK AND RECREATION BALANCE SH INVENTORYMTI DISTRIBUTING CO 1,071.71 445.23OPERATIONSEQUIPMENT PARTSMUNICIPAL EMERGENCY SERVICES I 445.23 530.00REILLY BUDGET OTHER CONTRACTUAL SERVICESMVTL LABORATORIES 530.00 95.00INSPECTIONS G & A TRAININGN E H A 95.00 756.00EMPLOYEE FLEX SPEND G&A TUITIONNADEM, SIAR 756.00 81.95ROUTINE MAINTENANCE GENERAL SUPPLIESNAPA (GENUINE PARTS CO) 20.40SANDING/SALTING GENERAL SUPPLIES 1,957.26PARK AND RECREATION BALANCE SH INVENTORY 86.36PARK MAINTENANCE G & A GENERAL SUPPLIES 1,162.52VEHICLE MAINTENANCE G&A GENERAL SUPPLIES 843.54PREVENTATIVE MAINTENANCE GENERAL SUPPLIES 111.42GENERAL REPAIR GENERAL SUPPLIES 76.08GENERAL REPAIR SMALL TOOLS 4,339.53 929.13SPECIAL PROJECTS BUILDING MTCE SERVICENATL AUTOMATIC SPRINKLER CO 929.13 4,986.00SSD 1 G&A OTHER CONTRACTUAL SERVICESNATURAL REFLECTIONS VII LLC 5,244.75SSD 2 G&A OTHER CONTRACTUAL SERVICES 1,208.25SSD 3 G&A OTHER CONTRACTUAL SERVICES 1,937.25SSD #5 G&A OTHER CONTRACTUAL SERVICES 13,376.25 5,000.00TECHNOLOGY REPLACEMENT EQUIPMENT MTCE SERVICENEOGOV 5,000.00 734.96VEHICLE MAINTENANCE G&A GENERAL SUPPLIESNEP CORP City Council Meeting of December 20, 2010 (Item No. 4o) Subject: Vendor Claims Page 29 12/15/2010CITY OF ST LOUIS PARK 9:44:03R55CKSUM LOG23000VO 29Page -Council Check Summary 12/17/2010 -11/6/2010 Vendor AmountBusiness Unit Object 734.96 212.50FOOTBALLOTHER CONTRACTUAL SERVICESNEUMANN, NEAL 212.50 95.21ADMINISTRATION G & A TELEPHONENEXTEL COMMUNICATIONS 114.04HUMAN RESOURCES TELEPHONE 392.33RESEARCH & DEVELOPMENT TELEPHONE 88.12ASSESSING G & A TELEPHONE 139.78FINANCE G & A TELEPHONE 328.85EDA / HA REIMBURSEMENT TELEPHONE 752.27POLICE G & A TELEPHONE 376.66OPERATIONSTELEPHONE 88.21INSPECTIONS G & A TELEPHONE 281.70ENGINEERING G & A TELEPHONE 468.88PUBLIC WORKS OPS G & A TELEPHONE 124.24PARK AND REC G&A TELEPHONE 223.03ORGANIZED REC G & A TELEPHONE 308.12PARK MAINTENANCE G & A TELEPHONE 93.55ENVIRONMENTAL G & A TELEPHONE 323.06WESTWOOD G & A TELEPHONE 88.21REC CENTER/AQUATIC PARK SAL TELEPHONE 89.33VEHICLE MAINTENANCE G&A TELEPHONE 387.13WATER UTILITY G&A TELEPHONE 202.81SEWER UTILITY G&A TELEPHONE 28.42SOLID WASTE G&A TELEPHONE 4,993.95 225.00MOVE-UP PROGRAM OTHER CONTRACTUAL SERVICESNGUYEN ARCHITECTS 225.00 5,265.00PARK IMPROVE CAPITAL PROJECT BUILDINGS & STRUCTURESNORTH STAR ART GLASS INC 5,265.00 25.00TRAININGGENERAL PROFESSIONAL SERVICESNORTH WORKS OCCUPATIONAL HEALT 25.00 22,646.60TASK FORCE GRANTS - STATENORTHWEST METRO DRUG TASK FORC 22,646.60 22.40SPECIAL PROGRAMS PROGRAM REVENUENOWAK, ANGIE 22.40 City Council Meeting of December 20, 2010 (Item No. 4o) Subject: Vendor Claims Page 30 12/15/2010CITY OF ST LOUIS PARK 9:44:03R55CKSUM LOG23000VO 30Page -Council Check Summary 12/17/2010 -11/6/2010 Vendor AmountBusiness Unit Object 12,245.55COMM & MARKETING G & A PRINTING & PUBLISHINGNYSTROM PUBLISHING 12,245.55 20.00WATER UTILITY G&A MILEAGE-PERSONAL CARO'CONNOR, CHARLES 20.00 1,000.00POLICE G & A OTHER CONTRACTUAL SERVICESOAK KNOLL ANIMAL HOSPITAL 1,000.00 345.00ESCROWSPMC ESCROWOAKWOOD PARTNERS 345.00 423.75INSTRUCTIONAL SKATING LESSONS OTHER CONTRACTUAL SERVICESOBERSTAR, KATIE 423.75 395.44TECHNOLOGY REPLACEMENT OFFICE EQUIPMENTOCE 395.44 175.85ADMINISTRATION G & A OFFICE SUPPLIESOFFICE DEPOT 39.26HUMAN RESOURCES OFFICE SUPPLIES 107.94SUPPORT SERVICES G&A EQUIPMENT MTCE SERVICE 101.40ASSESSING G & A OFFICE SUPPLIES 70.08FINANCE G & A OFFICE SUPPLIES 55.48GENERAL INFORMATION OFFICE SUPPLIES 235.49FACILITIES MCTE G & A OFFICE SUPPLIES 769.65POLICE G & A OFFICE SUPPLIES 30.35POLICE G & A OPERATIONAL SUPPLIES 3.87SUPPORT SERVICES OFFICE SUPPLIES 55.34SUPPORT SERVICES OPERATIONAL SUPPLIES 472.51OPERATIONSOFFICE SUPPLIES 371.17INSPECTIONS G & A GENERAL SUPPLIES 521.13PUBLIC WORKS G & A OFFICE SUPPLIES 312.83ORGANIZED REC G & A OFFICE SUPPLIES 178.45WESTWOOD G & A OFFICE SUPPLIES 5.00HOUSING REHAB G & A OFFICE SUPPLIES 3,505.80 350.00GREEN REMODELING PROGRAM OTHER CONTRACTUAL SERVICESOLDS, ROBERT 350.00 274.76VEHICLE MAINTENANCE G&A GENERAL SUPPLIESOLSEN CHAIN & CABLE CO INC City Council Meeting of December 20, 2010 (Item No. 4o) Subject: Vendor Claims Page 31 12/15/2010CITY OF ST LOUIS PARK 9:44:03R55CKSUM LOG23000VO 31Page -Council Check Summary 12/17/2010 -11/6/2010 Vendor AmountBusiness Unit Object 274.76 29.47WATER UTILITY G&A GENERAL CUSTOMERSOLSON, ROCKY 29.47 126.35TREE MAINTENANCE GENERAL SUPPLIESOMAHA PAPER COMPANY INC 126.35 2,494.23PORTABLE TOILETS/FIELD MAINT OTHER CONTRACTUAL SERVICESON SITE SANITATION 171.00OFF-LEASH DOG PARK OTHER CONTRACTUAL SERVICES 160.32WESTWOOD G & A OTHER CONTRACTUAL SERVICES 24.05NEIGHBORHOOD ASSOCIATION GRANT OTHER CONTRACTUAL SERVICES 2,849.60 800.27EMPLOYEE FLEX SPEND G&A GENERAL PROFESSIONAL SERVICESOPTUM HEALTH FINANCIAL SERVICE 800.27 5,780.00STORM WATER UTILITY G&A IMPROVEMENTS OTHER THAN BUILDIOTTO, RACHEL 5,780.00 429.00INSTRUCTIONAL SKATING LESSONS OTHER CONTRACTUAL SERVICESPAPP, MELISSA 429.00 161.94PARK AND RECREATION BALANCE SH INVENTORYPARTS PLUS 161.94 207,279.45CONSTRUCTION PAYMENTS IMPROVEMENTS OTHER THAN BUILDIPCI ROADS 207,279.45 1,233.66HUMAN RESOURCES RECRUITMENTPDI NINTH HOUSE 1,233.66 43.47ENGINEERING G & A OFFICE SUPPLIESPECCHIA, TOM 43.47 1,780.00COMM & MARKETING G & A PRINTING & PUBLISHINGPERNSTEINER CREATIVE GROUP INC 1,780.00 3.22HUMAN RESOURCES CITEPETTY CASH 2.67POLICE G & A OPERATIONAL SUPPLIES 3.00POLICE G & A TRAINING 42.00POLICE G & A TRAVEL/MEETINGS City Council Meeting of December 20, 2010 (Item No. 4o) Subject: Vendor Claims Page 32 12/15/2010CITY OF ST LOUIS PARK 9:44:03R55CKSUM LOG23000VO 32Page -Council Check Summary 12/17/2010 -11/6/2010 Vendor AmountBusiness Unit Object 14.95COMMUNICATIONS/GV REIMBURSEABL OPERATIONAL SUPPLIES 200.00PARK AND RECREATION BALANCE SH PETTY 7.00VEHICLE MAINTENANCE G&A SEMINARS/CONFERENCES/PRESENTAT 4.82WATER UTILITY G&A OTHER CONTRACTUAL SERVICES 23.58SOLID WASTE G&A GENERAL SUPPLIES 301.24 282.78INSTRUCTIONAL SKATING LESSONS GENERAL SUPPLIESPOLK, MARLA 2,215.30INSTRUCTIONAL SKATING LESSONS OTHER CONTRACTUAL SERVICES 2,498.08 3,166.51PARK AND RECREATION BALANCE SH INVENTORYPOMP'S TIRE SERVICE INC 152.10GENERAL REPAIR EQUIPMENT MTCE SERVICE 3,318.61 721.00PARK MAINTENANCE G & A TELEPHONEPOPP TELECOM 721.00 806.66WATER UTILITY G&A POSTAGEPOSTMASTER - PERMIT #603 806.66SEWER UTILITY G&A POSTAGE 806.65SOLID WASTE COLLECTIONS POSTAGE 806.65STORM WATER UTILITY G&A POSTAGE 3,226.62 1,290.00PARK IMPROVE CAPITAL PROJECT BUILDINGS & STRUCTURESPRECISION FIRE SPRINKLER INC 1,290.00 10,297.42TREE DISEASE PUBLIC CLEANING/WASTE REMOVAL SERVICEPRECISION LANDSCAPE & TREE 10,297.42 35.00YOUTH PROGRAMS PROGRAM REVENUEPRINDVILLE, MEGAN 35.00 324.00ICE RESURFACER EQUIPMENT MTCE SERVICEPRINTERS SERVICE INC 324.00 345.00PE INVEST/REVIEW/PER IMPROVEMENTS OTHER THAN BUILDIPROGRESSIVE CONSULTING ENGINEE 345.00 130.71BLDG/GROUNDS OPS & MAINT BUILDING MTCE SERVICEPUMP & METER SERVICE 1,947.00SEWER CAPITAL PROJ G & A IMPROVEMENTS OTHER THAN BUILDI 2,077.71 City Council Meeting of December 20, 2010 (Item No. 4o) Subject: Vendor Claims Page 33 12/15/2010CITY OF ST LOUIS PARK 9:44:03R55CKSUM LOG23000VO 33Page -Council Check Summary 12/17/2010 -11/6/2010 Vendor AmountBusiness Unit Object 1,960.90SEWER UTILITY G&A OTHER IMPROVEMENT SERVICEQ3 CONTRACTING 3,224.99STORM WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 5,185.89 27.08HUMAN RESOURCES GENERAL SUPPLIESQUICKSILVER EXPRESS COURIER 23.46GENERAL INFORMATION GENERAL PROFESSIONAL SERVICES 108.36PARK AND RECREATION BALANCE SH INVENTORY 158.90 160.25POLICE G & A OFFICE SUPPLIESQUILL CORP 60.02ORGANIZED REC G & A OFFICE SUPPLIES 220.27 456.38IT G & A TELEPHONEQWEST 762.55COMMUNICATIONS/GV REIMBURSEABL TELEPHONE 1,218.93 898.73ICE RESURFACER EQUIPMENT MTCE SERVICER & R SPECIALTIES 898.73 2,402.11FACILITY OPERATIONS GARBAGE/REFUSE SERVICERANDY'S SANITATION INC 984.69REC CENTER BUILDING GARBAGE/REFUSE SERVICE 95.98WATER UTILITY G&A GARBAGE/REFUSE SERVICE 897.49SOLID WASTE COLLECTIONS GARBAGE/REFUSE SERVICE 4,380.27 170.41WATER UTILITY G&A POSTAGERAPID GRAPHICS & MAILING 170.42SEWER UTILITY G&A POSTAGE 170.42SOLID WASTE COLLECTIONS POSTAGE 170.42STORM WATER UTILITY G&A POSTAGE 681.67 6,057.69SOLID WASTE COLLECTIONS OTHERREHRIG PACIFIC CO 6,057.69 257.00INSPECTIONS G & A BUILDINGRETAIL CONSTRUCTION SERVICES 257.00 47.29NETWORK SUPPORT SERVICES BANK CHARGES/CREDIT CD FEESRICOH AMERICAS CORP 47.29 City Council Meeting of December 20, 2010 (Item No. 4o) Subject: Vendor Claims Page 34 12/15/2010CITY OF ST LOUIS PARK 9:44:03R55CKSUM LOG23000VO 34Page -Council Check Summary 12/17/2010 -11/6/2010 Vendor AmountBusiness Unit Object 8,654.68WATER UTILITY G&A OTHER CONTRACTUAL SERVICESRMR SERVICES 8,654.68 190.00ENVIRONMENTAL G & A SEMINARS/CONFERENCES/PRESENTATROCHESTER ARBORIST WORKSHOP 190.00 569.45PARK IMPROVE CAPITAL PROJECT BUILDINGS & STRUCTURESROSEN REMODEL & REPAIR, STEVE 569.45 219.00ADMINISTRATION G & A SUBSCRIPTIONS/MEMBERSHIPSROTARY CLUB OF SLP 170.00SUPERVISORYSUBSCRIPTIONS/MEMBERSHIPS 330.00SUPERVISORYMEETING EXPENSE 719.00 280.00PLUMBING MTCE BUILDING MTCE SERVICEROTO-ROOTER 280.00 504.45STORM WATER UTILITY G&A OTHER IMPROVEMENT SERVICEROYAL CONCRETE PIPE INC 504.45 196.00BASKETBALLOTHER CONTRACTUAL SERVICESRUDDY, WILLIAM 196.00 267.53PARK AND RECREATION BALANCE SH INVENTORYRUFFRIDGE JOHNSON EQUIPMENT CO 267.53 519.02STORM WATER UTILITY G&A OTHER IMPROVEMENT SERVICESA-AG INC 519.02 458.65GENERAL REPAIR EQUIPMENT MTCE SERVICESAFELITE FULFILLMENT INC 458.65 144.49OPERATIONSGENERAL SUPPLIESSAM'S CLUB 677.09HOLIDAY PROGRAMS GENERAL SUPPLIES 235.32WARMING HOUSES GENERAL SUPPLIES 162.72CONCESSIONSGENERAL SUPPLIES 9.98BRICK HOUSE (1324)OTHER IMPROVEMENT SUPPLIES 9.98WW RENTAL HOUSE (1322)OTHER IMPROVEMENT SUPPLIES 19.88WESTWOOD G & A GENERAL SUPPLIES 312.51WESTWOOD G & A OTHER IMPROVEMENT SUPPLIES 39.80FAMILY PROGRAMS GENERAL SUPPLIES 1,036.30HALLOWEEN PARTY GENERAL SUPPLIES City Council Meeting of December 20, 2010 (Item No. 4o) Subject: Vendor Claims Page 35 12/15/2010CITY OF ST LOUIS PARK 9:44:03R55CKSUM LOG23000VO 35Page -Council Check Summary 12/17/2010 -11/6/2010 Vendor AmountBusiness Unit Object 2,648.07 916.67ADMINISTRATION G & A LIQUORSAUCE PIZZA & WINE 916.67 425.00INSPECTIONS G & A MECHANICALSAUER, LISA 425.00 275.42BUILDING MAINTENANCE BLDG/STRUCTURE SUPPLIESSAVITT BROS INC 214.48PARK IMPROVE CAPITAL PROJECT BUILDINGS & STRUCTURES 489.90 1,970.51H.V.A.C. EQUIP. MTCE BLDG/STRUCTURE SUPPLIESSCAN AIR FILTER INC 1,970.51 158.82PARK EQUIPMENT MAINTENANCE GENERAL SUPPLIESSCHERER BROS. LUMBER CO. 672.34SKATING RINK MAINTENANCE OTHER IMPROVEMENT SUPPLIES 995.65PARK IMPROVE CAPITAL PROJECT IMPROVEMENTS OTHER THAN BUILDI 1,826.81 1,500.00ESCROWSDEMO / BROOKSIDE TRAFFICSCHIRBER, LAURA 1,500.00 362.50GREEN REMODELING PROGRAM OTHER CONTRACTUAL SERVICESSCHMIDT, JASON 362.50 244.00INSTRUCTIONAL SKATING LESSONS OTHER CONTRACTUAL SERVICESSCHMIDT, KELLIE 244.00 988.10EMPLOYEE FLEX SPEND G&A TUITIONSCHNEIDER, JENNIFER 988.10 150.00GREEN REMODELING PROGRAM OTHER CONTRACTUAL SERVICESSCHUTTE, STEVE 150.00 42,158.16PE DESIGN IMPROVEMENTS OTHER THAN BUILDISEH 3,844.28SEWER UTILITY G&A GENERAL PROFESSIONAL SERVICES 308.00STORM WATER UTILITY G&A OTHER CONTRACTUAL SERVICES 46,310.44 450.00MOVE-UP PROGRAM OTHER CONTRACTUAL SERVICESSHELTER ARCHITECTURE 450.00 City Council Meeting of December 20, 2010 (Item No. 4o) Subject: Vendor Claims Page 36 12/15/2010CITY OF ST LOUIS PARK 9:44:03R55CKSUM LOG23000VO 36Page -Council Check Summary 12/17/2010 -11/6/2010 Vendor AmountBusiness Unit Object 722.49PARK IMPROVE CAPITAL PROJECT BUILDINGS & STRUCTURESSHERWIN WILLIAMS 722.49 1,092.00ROUTINE MAINTENANCE OTHER CONTRACTUAL SERVICESSIDEWALKS PLUS 1,092.00 14,362.00PARK IMPROVE CAPITAL PROJECT BUILDINGS & STRUCTURESSIGNATURE MECHANICAL INC 14,362.00 1,144.62BUILDING MAINTENANCE BUILDING MTCE SERVICESIMPLEXGRINNELL LP 1,144.62 59.22CLEANING/DEBRIS REMOVAL CLEANING/WASTE REMOVAL SERVICESKB ENVIRONMENTAL 59.22 1,599.53EMPLOYEE FLEXIBLE SPENDING B/S UNION DUESSLP ASSOC OF FIREFIGHTERS #993 1,599.53 10,000.00EXCESS PUBLIC LAND OTHER CONTRACTUAL SERVICESSMITH, SHAWN 10,000.00 675.00HARD SURFACE FLOOR MTCE BLDG/STRUCTURE SUPPLIESSONUS INTERIORS INC 675.00 102.98BUILDING MAINTENANCE GENERAL SUPPLIESSPARTAN GROUP LLC 102.98 395.23PARK EQUIPMENT MAINTENANCE OTHER IMPROVEMENT SUPPLIESSPORT SUPPLY GROUP INC 395.23 1,456.00IT G & A DATACOMMUNICATIONSSPRINT 1,456.00 18.64SEWER UTILITY G&A BLDG/STRUCTURE SUPPLIESSPS COMPANIES INC 18.64 6,403.96ENGINEERING G & A ENGINEERING SERVICESSRF CONSULTING GROUP INC 1,969.64ORGANIZED REC G & A OTHER CONTRACTUAL SERVICES 3,258.48PARK IMPROVE CAPITAL PROJECT IMPROVEMENTS OTHER THAN BUILDI 7,865.45CE INSPECTION IMPROVEMENTS OTHER THAN BUILDI 2,763.15CE DESIGN IMPROVEMENTS OTHER THAN BUILDI City Council Meeting of December 20, 2010 (Item No. 4o) Subject: Vendor Claims Page 37 12/15/2010CITY OF ST LOUIS PARK 9:44:03R55CKSUM LOG23000VO 37Page -Council Check Summary 12/17/2010 -11/6/2010 Vendor AmountBusiness Unit Object 22,260.68 200.00GROUNDS MTCE LANDSCAPING MATERIALSST CLOUD SPRINKLER INC 200.00 100.00CABLE TV G & A OTHER CONTRACTUAL SERVICESST LOUIS PARK BLUE LINE CLUB 100.00 935.65STEP/HAMILTON HOUSE OTHER CONTRACTUAL SERVICESST LOUIS PARK HOUSING AUTHORIT 20,265.24MHFAOTHER CONTRACTUAL SERVICES 21,200.89 888.00HALLOWEEN PARTY OTHER CONTRACTUAL SERVICESST LOUIS PARK TRANSP INC 888.00 85.50INSPECTIONS G & A MECHANICALSTAFFORD ELECTRIC, PAUL 85.50 223.60ADMINISTRATION G & A SUBSCRIPTIONS/MEMBERSHIPSSTAR TRIBUNE 223.60 56,500.00STEP/HAMILTON HOUSE OTHER CONTRACTUAL SERVICESSTEP 56,500.00 174.57REFORESTATION FUND OTHER CONTRACTUAL SERVICESSTILLMAN, MARTIN 174.57 2,052.46PARK AND RECREATION BALANCE SH INVENTORYSTONEBROOKE EQUIPMENT INC 2,052.46 3,447.92POLICE G & A OPERATIONAL SUPPLIESSTREICHER'S 3,447.92 3,076.12PARK AND RECREATION BALANCE SH INVENTORYSUBURBAN TIRE WHOLESALE 3,076.12 250.00PARK BUILDING MAINTENANCE BUILDING MTCE SERVICESUMMIT FIRE PROTECTION 250.00 1,328.17ADMINISTRATION G & A LEGAL NOTICESSUN NEWSPAPERS 1,328.17 City Council Meeting of December 20, 2010 (Item No. 4o) Subject: Vendor Claims Page 38 12/15/2010CITY OF ST LOUIS PARK 9:44:03R55CKSUM LOG23000VO 38Page -Council Check Summary 12/17/2010 -11/6/2010 Vendor AmountBusiness Unit Object 3,720.00GO BONDS-FIRE STATIONS G&A BUILDINGS & STRUCTURESSUNDE LAND SURVEYING LLC 3,720.00 591,018.06SUNSET RIDGE OTHER CONTRACTUAL SERVICESSUNSET RIDGE CONDOMINIUM ASSN 591,018.06 800.88GENERAL REPAIR EQUIPMENT MTCE SERVICESUPERIOR FORD 800.88 635.00WATER UTILITY G&A GENERAL CUSTOMERSTADDIKEN, DAVID 635.00 447.89IRRIGATION MAINTENANCE OTHER CONTRACTUAL SERVICESTALBERG LAWN & LANDSCAPE INC 447.89 29.37-PARK IMPROVE BALANCE SHEET DUE TO OTHER GOVTSTAMARACK MATERIALS INC 456.57PARK IMPROVE CAPITAL PROJECT BUILDINGS & STRUCTURES 427.20 28.37POLICE G & A OFFICE SUPPLIESTARGET BANK 30.28POLICE G & A TRAINING 58.65 300.00HUMAN RESOURCES SUBSCRIPTIONS/MEMBERSHIPSTCALMC 300.00 1,173.16DARE PROGRAM OPERATIONAL SUPPLIESTEE'S PLUS 1,173.16 14.19ADMINISTRATION G & A OTHER CONTRACTUAL SERVICESTELELANGUAGE INC 14.19 348.72BUILDING MAINTENANCE EQUIPMENT MTCE SERVICETENNANT SALES AND SERVICE CO. 348.72 300.61VEHICLE MAINTENANCE G&A GENERAL SUPPLIESTERMINAL SUPPLY CO 300.61 54.71GENERAL BUILDING MAINTENANCE BLDG/STRUCTURE SUPPLIESTERMINIX INT 74.56BRICK HOUSE (1324)BUILDING MTCE SERVICE 74.55WW RENTAL HOUSE (1322)BUILDING MTCE SERVICE 291.00BUILDING MAINTENANCE BUILDING MTCE SERVICE City Council Meeting of December 20, 2010 (Item No. 4o) Subject: Vendor Claims Page 39 12/15/2010CITY OF ST LOUIS PARK 9:44:03R55CKSUM LOG23000VO 39Page -Council Check Summary 12/17/2010 -11/6/2010 Vendor AmountBusiness Unit Object 494.82 3,950.00REILLY BUDGET OTHER CONTRACTUAL SERVICESTESTAMERICA LABORATORIES INC 3,950.00 90.52ADMINISTRATION G & A LONG TERM DISABILITYTHE HARTFORD - PRIORITY ACCOUN 106.58HUMAN RESOURCES LONG TERM DISABILITY 31.68COMM & MARKETING G & A LONG TERM DISABILITY 83.40IT G & A LONG TERM DISABILITY 39.96ASSESSING G & A LONG TERM DISABILITY 129.60FINANCE G & A LONG TERM DISABILITY 225.12COMM DEV G & A LONG TERM DISABILITY 242.10POLICE G & A LONG TERM DISABILITY 153.66OPERATIONSLONG TERM DISABILITY 115.62INSPECTIONS G & A LONG TERM DISABILITY 87.22PUBLIC WORKS G & A LONG TERM DISABILITY 113.66ENGINEERING G & A LONG TERM DISABILITY 40.96PUBLIC WORKS OPS G & A LONG TERM DISABILITY 137.48ORGANIZED REC G & A LONG TERM DISABILITY 40.96PARK MAINTENANCE G & A LONG TERM DISABILITY 34.16ENVIRONMENTAL G & A LONG TERM DISABILITY 34.16WESTWOOD G & A LONG TERM DISABILITY 36.10REC CENTER/AQUATIC PARK SAL LONG TERM DISABILITY 35.12VEHICLE MAINTENANCE G&A LONG TERM DISABILITY 33.18HOUSING REHAB G & A LONG TERM DISABILITY 40.96WATER UTILITY G&A LONG TERM DISABILITY 3,762.00EMPLOYEE FLEX SPEND G&A LONG TERM DISABILITY 5,614.20 72.39WATER UTILITY G&A GENERAL CUSTOMERSTHERON PROPERTIES 72.39 39,729.10CONSTRUCTION PAYMENTS IMPROVEMENTS OTHER THAN BUILDITHOMAS & SONS CONST INC 39,729.10 456.00INSTRUCTIONAL SKATING LESSONS OTHER CONTRACTUAL SERVICESTHOMPSON, HOLLY 456.00 1,480.14ADMINISTRATION G & A OTHER CONTRACTUAL SERVICESTIMESAVER OFF SITE SECRETARIAL 1,480.14 667.27SEWER UTILITY G&A IMPROVEMENTS OTHER THAN BUILDITKDA City Council Meeting of December 20, 2010 (Item No. 4o) Subject: Vendor Claims Page 40 12/15/2010CITY OF ST LOUIS PARK 9:44:03R55CKSUM LOG23000VO 40Page -Council Check Summary 12/17/2010 -11/6/2010 Vendor AmountBusiness Unit Object 667.27 4,807.06PARK AND RECREATION BALANCE SH INVENTORYTOWMASTER 4,807.06 481.20WESTWOOD G & A OTHER IMPROVEMENT SUPPLIESTREE TRUST 1,800.00WESTWOOD G & A OTHER CONTRACTUAL SERVICES 279.29PARK IMPROVE CAPITAL PROJECT OTHER CONTRACTUAL SERVICES 2,560.49 1,662.52PARK AND RECREATION BALANCE SH INVENTORYTURFWERKS LLC 1,662.52 664.00WW RENTAL HOUSE (1322)OTHER IMPROVEMENT SUPPLIESTWIN CITY GARAGE DOOR CO 664.00 30.00ADMINISTRATION G & A SEMINARS/CONFERENCES/PRESENTATTWIN WEST CHAMBER OF COMMERCE 30.00 56.01-GENERAL FUND BALANCE SHEET DUE TO OTHER GOVTSUHL CO INC 870.73GENERAL BUILDING MAINTENANCE BLDG/STRUCTURE SUPPLIES 674.60POLICE G & A REPAIRS 1,489.32 1,243.45PARK IMPROVE CAPITAL PROJECT IMPROVEMENTS OTHER THAN BUILDIULINE 1,243.45 13.89OPERATIONSGENERAL SUPPLIESUNIFORMS UNLIMITED (FIRE) 366.41OPERATIONSOPERATIONAL SUPPLIES 380.30 343.76SUPERVISORYOPERATIONAL SUPPLIESUNIFORMS UNLIMITED (PD) 2,212.27PATROLOPERATIONAL SUPPLIES 42.74TASK FORCE OTHER 2,598.77 31.50ENGINEERING G & A OPERATIONAL SUPPLIESUNITED RENTALS NORTHWEST INC 1,986.68ENGINEERING G & A RENTAL EQUIPMENT 2,018.18 382.00EMPLOYEE FLEXIBLE SPENDING B/S UNITED WAYUNITED WAY OF MINNEAPOLIS AREA 382.00 City Council Meeting of December 20, 2010 (Item No. 4o) Subject: Vendor Claims Page 41 12/15/2010CITY OF ST LOUIS PARK 9:44:03R55CKSUM LOG23000VO 41Page -Council Check Summary 12/17/2010 -11/6/2010 Vendor AmountBusiness Unit Object 1,180.00INSPECTIONS G & A TRAININGUNIVERSITY OF MINNESOTA 1,180.00 109.00ENGINEERING G & A SEMINARS/CONFERENCES/PRESENTATUNIVERSITY OF MINNESOTA REGIST 109.00 25.00POLICE G & A OTHER CONTRACTUAL SERVICESUNIVERSITY OF MINNESOTA VET DI 25.00 110.00POLICE G & A OTHER CONTRACTUAL SERVICESUNO DOS TRES COMMUNICATIONS 110.00 6,928.71TREE DISEASE PRIVATE CLEANING/WASTE REMOVAL SERVICEUPPER CUT TREE SERVICE 6,928.71 269.39WATER UTILITY G&A OTHER CONTRACTUAL SERVICESUPS STORE 269.39 39.66WATER UTILITY G&A TELEPHONEUSA MOBILITY WIRELESS INC 39.66 615.80HUMAN RESOURCES RECOGNITIONVAIL, LORI 615.80 60.55OPERATIONSOPERATIONAL SUPPLIESVALLEY NATIONAL GASES WV LLC 17.56VEHICLE MAINTENANCE G&A GENERAL SUPPLIES 26.75GENERAL REPAIR GENERAL SUPPLIES 52.16SEWER UTILITY G&A GENERAL SUPPLIES 157.02 86,023.99CONSTRUCTION PAYMENTS IMPROVEMENTS OTHER THAN BUILDIVALLEY PAVING INC 86,023.99 221.00ENVIRONMENTAL G & A MILEAGE-PERSONAL CARVAUGHAN, JIM 221.00 80.00HUMAN RESOURCES RECRUITMENTVERIFIED CREDENTIALS 80.00 2,888.53VOICE SYSTEM MTCE TELEPHONEVERIZON WIRELESS 146.52COMMUNICATIONS/GV REIMBURSEABL TELEPHONE City Council Meeting of December 20, 2010 (Item No. 4o) Subject: Vendor Claims Page 42 12/15/2010CITY OF ST LOUIS PARK 9:44:03R55CKSUM LOG23000VO 42Page -Council Check Summary 12/17/2010 -11/6/2010 Vendor AmountBusiness Unit Object 3,035.05 62.84TREE MAINTENANCE GENERAL SUPPLIESVIKING INDUSTRIAL CTR 173.46WATER UTILITY G&A OPERATIONAL SUPPLIES 236.30 675.00SEWER UTILITY G&A GENERAL PROFESSIONAL SERVICESVISU-SEWER CLEAN & SEAL 30,351.00CONSTRUCTION PAYMENTS IMPROVEMENTS OTHER THAN BUILDI 31,026.00 69.24WATER UTILITY G&A GENERAL CUSTOMERSWAGNER, LAURA 69.24 37.75COMM DEV PLANNING G & A MEETING EXPENSEWALTHER, SEAN 240.00COMM DEV PLANNING G & A MILEAGE-PERSONAL CAR 277.75 63.00HALLOWEEN PARTY OTHER CONTRACTUAL SERVICESWASTE MANAGEMENT OF WI-MN 618.99SEWER UTILITY G&A OTHER CONTRACTUAL SERVICES 2,500.00-SOLID WASTE G&A MISCELLANEOUS 1,617.66SOLID WASTE COLLECTIONS MOTOR FUELS 114,338.92SOLID WASTE COLLECTIONS GARBAGE/REFUSE SERVICE 47,728.20SOLID WASTE COLLECTIONS YARD WASTE SERVICE 57,914.55SOLID WASTE DISPOSAL GARBAGE/REFUSE SERVICE 37,334.24SOLID WASTE DISPOSAL YARD WASTE SERVICE 257,115.56 293.00PARK IMPROVE CAPITAL PROJECT IMPROVEMENTS OTHER THAN BUILDIWASTE TECHNOLOGY INC 293.00 219.50WATER UTILITY G&A OTHER IMPROVEMENT SERVICEWATER CONSERVATION SERVICE INC 219.50 1,596.25BUILDING MAINTENANCE EQUIPMENT MTCE SERVICEWAVS INC 1,596.25 83.87GENERAL REPAIR GENERAL SUPPLIESWAYTEK 83.87 4,997.53WATER UTILITY G&A EQUIPMENT MTCE SERVICEWEBER ELECTRIC 1,908.07STORM WATER UTILITY G&A EQUIPMENT MTCE SERVICE 6,905.60 City Council Meeting of December 20, 2010 (Item No. 4o) Subject: Vendor Claims Page 43 12/15/2010CITY OF ST LOUIS PARK 9:44:03R55CKSUM LOG23000VO 43Page -Council Check Summary 12/17/2010 -11/6/2010 Vendor AmountBusiness Unit Object 400.00BASKETBALLOTHER CONTRACTUAL SERVICESWELDON, DAN 400.00 35.00GREEN REMODELING PROGRAM OTHER CONTRACTUAL SERVICESWESTERN, SANDY 35.00 480.94SPECIAL PROJECTS BLDG/STRUCTURE SUPPLIESWHEELER HARDWARE 480.94 335.00GREEN REMODELING PROGRAM OTHER CONTRACTUAL SERVICESWHILEY, GALEN 335.00 35.00YOUTH PROGRAMS PROGRAM REVENUEWILLIAMS, AMANDA 35.00 7,235.12TREE REPLACEMENT TREE REPLACEMENTWILSONS NURSERY INC 7,235.12 102.60VEHICLE MAINTENANCE G&A GENERAL SUPPLIESWIPERS & WIPES INC 102.60 1,143.93ELECTRICAL SYSTEM MTCE BUILDING MTCE SERVICEWOLNEY ELECTRIC LLC 1,143.93 299.25ORGANIZED REC G & A GENERAL SUPPLIESWRAP CITY GRAPHICS 466.25PARK IMPROVE CAPITAL PROJECT IMPROVEMENTS OTHER THAN BUILDI 765.50 784.00ENGINEERING G & A ENGINEERING SERVICESWSB ASSOC INC 784.00 410.10NEIGHBORHOOD ASSOCIATION GRANT OTHER CONTRACTUAL SERVICESWYATT, LISA 410.10 22,773.74FACILITY OPERATIONS ELECTRIC SERVICEXCEL ENERGY 20.91OPERATIONSELECTRIC SERVICE 53,674.89PUBLIC WORKS OPS G & A ELECTRIC SERVICE 3,001.81PARK MAINTENANCE G & A ELECTRIC SERVICE 317.75PARK BUILDING MAINTENANCE ELECTRIC SERVICE 16.89BRICK HOUSE (1324)ELECTRIC SERVICE 46.50WW RENTAL HOUSE (1322)ELECTRIC SERVICE City Council Meeting of December 20, 2010 (Item No. 4o) Subject: Vendor Claims Page 44 12/15/2010CITY OF ST LOUIS PARK 9:44:03R55CKSUM LOG23000VO 44Page -Council Check Summary 12/17/2010 -11/6/2010 Vendor AmountBusiness Unit Object 763.64WESTWOOD G & A ELECTRIC SERVICE 12,385.55ENTERPRISE G & A ELECTRIC SERVICE 38.34GO BONDS-FIRE STATIONS G&A ELECTRIC SERVICE 26,198.87WATER UTILITY G&A ELECTRIC SERVICE 31.35OPERATIONSELECTRIC SERVICE 1,589.77REILLY BUDGET ELECTRIC SERVICE 2,749.68SEWER UTILITY G&A ELECTRIC SERVICE 1,389.58STORM WATER UTILITY G&A ELECTRIC SERVICE 272.56OPERATIONSELECTRIC SERVICE 125,271.83 18,920.00PARK IMPROVE CAPITAL PROJECT OTHER CONTRACTUAL SERVICESXTERIOR XPERTS 9,259.00PARK IMPROVE CAPITAL PROJECT BUILDINGS & STRUCTURES 28,179.00 1,425.00HUMAN RESOURCES ORGANIZATIONAL DEVELOPMENTYESS! 1,425.00 47,178.14PARK AND RECREATION BALANCE SH INVENTORYYOCUM OIL CO INC 47,178.14 9.99PUBLIC WORKS OPS G & A GENERAL SUPPLIESZEE MEDICAL SERVICE 9.99PARK MAINTENANCE G & A GENERAL SUPPLIES 240.79BUILDING MAINTENANCE GENERAL SUPPLIES 9.99VEHICLE MAINTENANCE G&A GENERAL SUPPLIES 10.00WATER UTILITY G&A GENERAL SUPPLIES 280.76 30.00WESTWOOD G & A MILEAGE-PERSONAL CARZEMBRYKI, MARK 30.00 136.66ROUTINE MAINTENANCE GENERAL SUPPLIESZEP MFG 136.66 988.65-PARK AND RECREATION BALANCE SH INVENTORYZIEGLER INC 1,413.46GENERAL REPAIR EQUIPMENT MTCE SERVICE 424.81 277.67ORGANIZED REC G & A PRINTING & PUBLISHINGZIP PRINTING 111.01SOLID WASTE G&A GENERAL SUPPLIES 388.68 City Council Meeting of December 20, 2010 (Item No. 4o) Subject: Vendor Claims Page 45 12/15/2010CITY OF ST LOUIS PARK 9:44:03R55CKSUM LOG23000VO 45Page -Council Check Summary 12/17/2010 -11/6/2010 Vendor AmountBusiness Unit Object Report Totals 6,425,448.44 City Council Meeting of December 20, 2010 (Item No. 4o) Subject: Vendor Claims Page 46 Meeting Date: December 20, 2010 Agenda Item #: 4p MINUTES St. Louis Park Housing Authority Hamilton House – Activity Room Wednesday, November 10, 2010 5:00 p.m. MEMBERS PRESENT: Commissioners Catherine Courtney, Renee DuFour, Justin Kaufman STAFF PRESENT: Jane Klesk, Teresa Schlegel, Michele Schnitker 1. Call to Order The meeting was called to order at 5:30 p.m. 2. Approval of Minutes for September, 2010 The Board minutes of September 15, 2010 were unanimously approved. 3. Hearings – None 4. Reports and Committees – None 5. Unfinished Business – None 6. New Business a. Authorization to Establish Program Guidelines and Administer the Louisiana Court Max 200 Shallow Rent Subsidy Program Ms. Schnitker provided background on the Louisiana Court Max 200 Shallow Rent Subsidy Program which will provide a $200 monthly rent subsidy for up to 20 units at Louisiana Court. The funding source will be Park Center TIF District funds. Commissioners Courtney and DuFour suggested some changes to the program guidelines. After discussion, Commissioner DuFour moved to authorize the establishment of program guidelines and administration of the Louisiana Court Max 200 Shallow Rent Subsidy Program. Commissioner Kaufman seconded the motion, and the motion passed 3-0. b. Approval of the Participation of Hennepin County in the Louisiana Court Project through the Award of Affordable Housing Incentive Fund Award, Resolution No. 600 Ms. Schnitker explained that the Hennepin County Housing Redevelopment Authority (HCHRA) awarded a $550,000 grant to PPL, through the Affordable Housing Incentive Fund (AHIF), to assist with debt reduction and rehab of City Council Meeting of December 20, 2010 (Item 4p) Page 2 Subject: Housing Authority Minutes of November 11, 2010 Louisiana Court. Commissioner Kaufman moved Resolution No. 599, which had been tabled at the September, 2010, meeting, and Commissioner DuFour seconded the motion. The motion failed 3-0. Commissioner Kaufman then moved to approve Resolution No. 600, Approval of the Participation of Hennepin County in the Louisiana Court Project through the Award of Affordable Housing Incentive Fund Award. Commissioner DuFour seconded the motion, and the motion passed 3-0. c. Approval of Capital Improvement Project Contract: Hamilton House Ms. Schlegel sought Board approval to enter into a contract with Falls and Nyhusmoen Construction for interior renovation projects at Hamilton House. The contract will be funded from a $218,000 Publicly Owned Housing Program award from the Minnesota Housing Finance Agency (MHFA), with the balance coming from 2010 Capital Fund Program (CFP) funds. Commissioner Kaufman moved to enter into a contract with Falls and Nyhusmoen Construction, in the amount of $237,156, and contingent upon a written loan commitment from MHFA, for interior renovations at Hamilton House. Commissioner DuFour seconded the motion, and the motion passed 3-0. 7. Communications from Executive Director a. Claims List – October and November, 2010 Commissioner Kaufman inquired about the number of voided checks on the October – November, 2010 claims List, stating that it seemed higher than other months. Staff will ask the Finance department for an explanation. b. Communications 1. Monthly Report – October and November, 2010 2. Louisiana Court Update: Verbal Report 8. Other 9. Adjournment Commissioner DuFour moved to adjourn the meeting, and Commissioner Kaufman seconded the motion. The motion passed 3-0. The meeting was adjourned at 6:02 p.m. Respectfully submitted, _________________________ Renee DuFour, Secretary Meeting Date: December 20, 2010 Agenda Item #: 6a Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Public Hearing Study Session Discussion Item Written Report Other: TITLE: Public Hearing and Resolution Approving Establishment of the Hardcoat Tax Increment Financing District. RECOMMENDED ACTION: Conduct the public hearing and adopt the resolution approving the establishment of the Hardcoat Tax Increment Financing District within Redevelopment Project No. 1 (an economic development district). Motion to ratify the EDA resolution authorizing an Interfund Loan for advance of certain costs in connection with the Hardcoat TIF District. POLICY CONSIDERATION: Does the City Council support the establishment of the Hardcoat Tax Increment Financing District to facilitate the proposed purchase and renovation of 7301 - 7317 W. Lake Street (the former Flame Metals property)? The EDA will have considered the above actions earlier in the evening. Hardcoat’s CAP application was reviewed at the November 8th Study Session where it was favorably received. At its November 15th meeting, the City Council set a public hearing date of December 20th for the creation of the proposed TIF district. Potential business terms that would serve as the basis for a development contract were previewed at the December 13th Study Session. It is now time to take the final step in the TIF process which is to formally authorize the creation of the TIF district which enables the City to allocate tax increment generated from the proposed Hardcoat project to the Development Fund so as to reimburse a portion of the CAP funds provided to Hardcoat for the proposed project. BACKGROUND: Hardcoat Inc. (located at 7300 W. Lake Street) wishes to acquire 7301 - 7317 W. Lake Street (the former Flame Metals property) located across the street to the south. The company plans to renovate the building and site, and relocate its operations there. The industrial building is approximately 33,600 square feet and was constructed in 1963. It was in very poor condition with numerous building code deficiencies. Following Flame Metals’ departure in 2009, the building’s interior has been emptied, thoroughly cleaned, repainted, and many (but not all) code deficiencies have been addressed. Nearly all the building’s operating systems have been removed. Hardcoat’s plans include a complete renovation of both the interior and exterior of the building as well as the construction of a small addition. Renovation will include a new roof, new exterior facelift, new windows and dock doors, new offices and interior spaces, new electrical and plumbing systems, new energy efficient HVAC equipment, new parking lot and landscaping, rain gardens and site amenities, as well as the construction of a 1,500 SF addition for office/conference space on the north side of the building. Once the renovation is complete, Hardcoat will initially occupy approximately 25,000 City Council Meeting of December 20, 2010 (Item No.6a) Page 2 Subject: Public Hearing & Resolution Approving Hardcoat Tax Increment Financing District square feet of the building. The balance will be leased to a complementary business and provide Hardcoat with future expansion capacity. Request for Financial Assistance Hardcoat has negotiated a Purchase Agreement with A & D Holdings LLC, (the current owner of the Development property) for $1,010,000. The purchase price is $174,700 less than the property’s current assessed value. The total cost to renovate the building and grounds is estimated at $1.4 million. Of this amount, Hardcoat has applied for up to $420,000 in Construction Assistance: which equals approximately 33% of total renovation costs. When one adds the cost of the property ($1,010,000), the hard costs related to the building renovation ($1,400,000), the cost of new equipment ($500,000), as well as soft costs and permits estimated at ($136,500), the entire project will total nearly $3.05 million. Proposed Funding Sources As authorized by state statute, the source of the CAP funds is available tax increment revenue generated by five of the City’s TIF districts. These funds will be disbursed from the Development Fund. Given the size of Hardcoat’s CAP request, an Economic Development TIF District is proposed to reimburse a portion of the CAP funding provided to Hardcoat. It is estimated that the TIF district could generate approximately $207,000 over its 9-year term. Such an arrangement requires ratification of the EDA’s Interfund Loan Resolution. Structure of the CAP Funds CAP funds will be provided to Hardcoat upon prove-up that the property was purchased and the proposed construction costs were incurred. In order to remain in compliance with the TIF Act, the CAP funds will technically be applied to Hardcoat’s property acquisition costs as these are considered “qualified costs” under the rules for Economic Development TIF Districts. The funding will be structured as a forgivable loan through a mortgage. Provided the building is held and properly maintained by Hardcoat for 5 years after project completion, the entirety of the loan could be forgiven. If the property is sold within 5 years of project completion, the loan must be repaid along with 6% accrued interest from the date funding was provided. TIF District Approvals Hardcoat’s CAP application was reviewed at the November 8th Study Session where it was favorably received. At its November 15th meeting, the City Council set a public hearing date of December 20th for the creation of the proposed economic development TIF district. Business terms that would serve as the basis for a development contract were previewed at the December 13th Study Session where they were favorably received. The Planning Commission reviewed the Hardcoat Tax Increment Financing Plan on December 15th and determined it was in conformance with the city’s Comprehensive Plan. Synopsis of the Proposed TIF District In order to reimburse the EDA for a portion of the CAP funds provided to Hardcoat, a new economic development TIF district is proposed. Tax increment generated from this new district will then be deposited back into the Development Fund. The proposed Hardcoat TIF District consists of the two former Flame Metals parcels: 7301 & 7317 W. Lake Street. The proposed TIF District is within the city’s Redevelopment Project Area as is statutorily required. Inclusion of the proposed project within a designated Redevelopment Project Area gives the EDA/Council City Council Meeting of December 20, 2010 (Item No.6a) Page 3 Subject: Public Hearing & Resolution Approving Hardcoat Tax Increment Financing District the authority to assist with all the economic development actions necessary to implement Hardcoat project. Attached is a copy of the Tax Increment Financing Plan establishing the Hardcoat Tax Increment Financing District. The Plan was prepared by the EDA’s TIF consultant, Ehlers & Associates. TIF Plans establish the geographic boundaries and financial parameters of a particular TIF district as well as the findings which statutorily qualify the district. In a general sense, TIF plans may be viewed as enabling legislation. The specific mutual obligations between the EDA and the Developer are contained in a separate Development Contract between the parties. It should be noted that the financing uses and project costs reflected within the Uses of Funds section of the proposed TIF Plan is a not-to-exceed budget and not the actual expected project budget. Feasibility and Duration of the Hardcoat TIF District The financial assistance to be provided to Hardcoat to facilitate the proposed project meets the requirements necessary to create an Economic Development TIF District. Those requirements include: (1) encouraging a manufacturer to remain in the state; (2) increasing employment; and (3) enhancing the tax base. Hardcoat’s proposed project qualifies as an Economic Development TIF District. It is estimated that upon completion the proposed project will generate approximately $207,000 over the 9-year term of the district. FINANCIAL OR BUDGET CONSIDERATION: Authorizing the establishment of the Hardcoat TIF District does not, in itself, commit the City to any specific level of assistance for the proposed project. Procedurally it simply creates the funding vehicle that enables the EDA to reimburse itself for a portion of the CAP funds provided to Hardcoat. The terms and amount of CAP assistance are specified within the Development Contract with Hardcoat which also is to be considered at Monday night’s EDA meeting. VISION CONSIDERATION: Hardcoat’s proposal to purchase and completely renovate the former Flame Metals building is consistent with elements of Vision St. Louis Park as it facilitates and promotes environmental stewardship and green development. Attachments: Resolution Adopting Modification to Redevelopment Plan Resolution Approving Internal Loan Hardcoat TIF Plan Summary (see 122010 EDA Item 7a) Hardcoat TIF Plan (see 122010 EDA Item 7a) Prepared by: Greg Hunt, Economic Development Coordinator Reviewed by: Kevin Locke, Community Development Director Approved by: Tom Harmening, City Manager and EDA Executive Director City Council Meeting of December 20, 2010 (Item No.6a) Page 4 Subject: Public Hearing & Resolution Approving Hardcoat Tax Increment Financing District CITY OF ST. LOUIS PARK HENNEPIN COUNTY STATE OF MINNESOTA RESOLUTION NO. 10-____ RESOLUTION ADOPTING A MODIFICATION TO THE REDEVELOPMENT PLAN FOR REDEVELOPMENT PROJECT NO. 1; AND ESTABLISHING THE HARDCOAT TAX INCREMENT FINANCING DISTRICT THEREIN AND ADOPTING A TAX INCREMENT FINANCING PLAN THEREFOR. BE IT RESOLVED by the City Council (the "Council") of the City of St. Louis Park, Minnesota (the "City"), as follows: Section 1. Recitals. 1.01. The Board of Commissioners of the St. Louis Park Economic Development Authority (the "EDA") has heretofore established Redevelopment Project No. 1 and adopted the Redevelopment Plan therefor. It has been proposed by the EDA that the City adopt a Modification to the Redevelopment Plan (the "Redevelopment Plan Modification") for Redevelopment Project No. 1 (the "Project Area") and establish the Hardcoat Tax Increment Financing District (the "District") therein and adopt a Tax Increment Financing Plan (the "TIF Plan") therefor (the Redevelopment Plan Modification and the TIF Plan are referred to collectively herein as the "Plans"); all pursuant to and in conformity with applicable law, including Minnesota Statutes, Sections 469.090 to 469.1082 and Sections 469.174 to 469.1799, all inclusive, as amended, (the "Act") all as reflected in the Plans, and presented for the Council's consideration. 1.02. The City has investigated the facts relating to the Plans and has caused the Plans to be prepared. 1.03. The City has performed all actions required by law to be performed prior to the establishment of the District and the adoption and approval of the proposed Plans, including, but not limited to, notification of Hennepin County and Independent School District No. 283 having taxing jurisdiction over the property to be included in the District, a review of and written comment on the Plans by the City Planning Commission on December 15, 2010, approval of the Plans by the EDA on December 20, 2010, and the holding of a public hearing upon published notice as required by law. 1.04. Certain written reports (the ''Reports") relating to the Plans and to the activities contemplated therein have heretofore been prepared by staff and consultants and submitted to the Council and/or made a part of the City files and proceedings on the Plans. The Reports include data, information and/or substantiation constituting or relating to the basis for the other findings and determinations made in this resolution. The Council hereby confirms, ratifies and adopts the Reports, which are hereby incorporated into and made as fully a part of this resolution to the same extent as if set forth in full herein. City Council Meeting of December 20, 2010 (Item No.6a) Page 5 Subject: Public Hearing & Resolution Approving Hardcoat Tax Increment Financing District 1.05 The Council recognizes that, pursuant to Minnesota Statutes, Section 469.177, Subd. 3, clause b, there is a mandatory fiscal disparities contribution for the District, an economic development district. 1.06. The Council intends to provide certain tax increment assistance from the District pursuant to the temporary authority provided pursuant to Laws 2010, Chapter 216, Section 31 (the “Jobs Act”). 1.07. The City is not modifying the boundaries of the Project Area, but is however, modifying the Redevelopment Plan therefor. Section 2. Findings for the Adoption and Approval of the Redevelopment Plan Modification. 2.01. The Council approves the Redevelopment Plan Modification, and specifically finds that: (a) the land within the Project area would not be available for redevelopment without the financial aid to be sought under this Redevelopment Plan; (b) the Redevelopment Plan, as modified, will afford maximum opportunity, consistent with the needs of the City as a whole, for the development of the Project by private enterprise; and (c) the Redevelopment Plan, as modified, conforms to the general plan for the development of the City as a whole. Section 3. Findings for the Establishment of Hardcoat Tax Increment Financing District. 3.01. The Council hereby finds that the District is in the public interest and is an "economic development district" under Minnesota Statutes, Section 469.174, Subd. 12 of the Act. 3.02. The Council further finds that the proposed development would not occur solely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the District permitted by the Tax Increment Financing Plan, that the Plans conform to the general plan for the development or redevelopment of the City as a whole; and that the Plans will afford maximum opportunity consistent with the sound needs of the City as a whole, for the redevelopment or development of the District by private enterprise. 3.03. The Council further finds, declares and determines that the City made the above findings stated in this Section and has set forth the reasons and supporting facts for each determination in writing, attached hereto as Exhibit A. Section 4. Findings for Use of Tax Increment from Hardcoat Tax Increment Financing District to Provide Assistance Pursuant to Jobs Act. 4.01. The Council hereby finds that the proposed development to be assisted through tax increments from the District will create or retain jobs in the state, including construction jobs. 4.02. The Council further finds that construction of the proposed development would not commence prior to July 1, 2011, without tax financing assistance. City Council Meeting of December 20, 2010 (Item No.6a) Page 6 Subject: Public Hearing & Resolution Approving Hardcoat Tax Increment Financing District Section 5. Public Purpose. 5.01. The adoption of the Plans conforms in all respects to the requirements of the Act and will help discourage commerce, industry, or manufacturing from moving their operations to another state or municipality, will result in increased employment in the state, and will result in preservation and enhancement of the tax base of the State and thereby serves a public purpose. For the reasons described in Exhibit A, the City believes these benefits directly derive from the tax increment assistance provided under the TIF Plan. The private developer of the proposed development will receive only the assistance needed to make this development financially feasible. As such, any private benefits received by such developer are incidental and do not outweigh the primary public benefits. Section 6. Approval and Adoption of the Plans. 6.01. The Plans, as presented to the Council on this date, including without limitation the findings and statements of objectives contained therein, are hereby approved, ratified, established, and adopted and shall be placed on file in the office of the Economic Development Coordinator. 6.02. The staff of the City, the City's advisors and legal counsel are authorized and directed to proceed with the implementation of the Plans and to negotiate, draft, prepare and present to this Council for its consideration all further plans, resolutions, documents and contracts necessary for this purpose. 6.03. The Auditor of Hennepin County is requested to certify the original net tax capacity of the District, as described in the Plans, and to certify in each year thereafter the amount by which the original net tax capacity has increased or decreased; and the EDA is authorized and directed to forthwith transmit this request to the County Auditor in such form and content as the Auditor may specify, together with a list of all properties within the District, for which building permits have been issued during the 18 months immediately preceding the adoption of this resolution. 6.04. The Economic Development Coordinator is further authorized and directed to file a copy of the Plans with the Commissioner of Revenue and the Office of the State Auditor pursuant to Minnesota Statutes 469.175, Subd. 4a. Reviewed for Administration Adopted by the City Council December 20, 2010 City Manager Mayor Attest: City Clerk City Council Meeting of December 20, 2010 (Item No.6a) Page 7 Subject: Public Hearing & Resolution Approving Hardcoat Tax Increment Financing District CITY OF ST. LOUIS PARK RESOLUTION NO. 10-____ RESOLUTION APPROVING INTERNAL LOAN FOR ADVANCE OF CERTAIN COSTS IN CONNECTION WITH HARDCOAT TAX INCREMENT FINANCING DISTRICT BE IT RESOLVED by the City Council of the City of St. Louis Park as follows: Section 1. Recitals. 1.01. Pursuant to Minnesota Statutes, Sections 469.174 to 469.179 (the “TIF Act”), the St. Louis Park Economic Development Authority (the “Authority”) and the City have established the Hardcoat Tax Increment Financing District (the “TIF District”) within Redevelopment Project No. 1 in the City. 1.02. The Authority is authorized to use increment from the TIF District to pay certain costs (the “Qualified Costs”) identified in the Tax Increment Financing Plan (‘TIF Plan”). 1.03. Pursuant to Minnesota Statutes, Section 469.178, Subd. 7 of the TIF Act, the Authority is authorized to advance or loan money from legally available City or Authority funds, in order to finance the Qualified Costs, and to reimburse itself for the Qualified Costs from tax increments derived from the TIF District. 1.04. On the date hereof, the Authority approved a resolution (the “Loan Resolution”) authorizing the Interfund Loan, designating funds from certain prior tax increment financing districts authorized for such purposes pursuant to the Spending Plan (as defined in the Loan Resolution) as the source of funds for the Interfund Loan, and setting the terms for repayment of the Interfund Loan using tax increment from the TIF District. Section 2. Interfund Loan Approved. 2.01. The City approves the Interfund Loan described in the Loan Resolution, and authorizes the use of the Spending Plan funds as the source of funds for the Interfund Loan. 2.02. The City Controller is authorized and directed to credit repayments of the Interfund Loan to the relevant Spending Plan funds according to the terms set forth in the Loan Resolution. 2.03. City staff and officials are hereby authorized and directed to execute any collateral documents and take any other actions necessary to carry out the intent of this resolution. Reviewed for Administration Adopted by the City Council December 20, 2010 City Manager Mayor Attest: City Clerk Meeting Date: December 20, 2010 Agenda Item #: 8a Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Dairy Queen – Conditional Use Permit for In-Vehicle Service. RECOMMENDED ACTION: Motion to Adopt Resolution denying a Conditional Use Permit application for in-vehicle sales and service for property located at 5001 Excelsior Boulevard. POLICY CONSIDERATION: Does the Council wish to approve or deny the request for in-vehicle (drive-through) sales and service at the Dairy Queen Grill & Chill, 5001 Excelsior Boulevard? BACKGROUND: The City Council considered the request by DRF G & C for a drive-through at the existing Dairy Queen restaurant at 5001 Excelsior Boulevard at its meeting of December 6, 2010. At the meeting there were presentations by Staff and the applicant, and testimony from four citizens. Following discussion, the Council voted to direct Staff and the City Attorney to revise the resolution denying the Conditional Use Permit and to bring the revised resolution to the Council for final adoption at its next meeting. Pursuant to the direction of the Council, the revised resolution is attached. Subsequent to the December 6 Council meeting, Dave Anderson, Applicant’s representative, advised Staff that the City Council packet did not include a revised site plan showing how Applicant would propose to meet the 100 foot residential setback requirement. Applicant made no mention of this after receiving the agenda materials or at the City Council meeting. Attached is the revised site plan which shows a 100 foot setback. This plan does not meet the setback requirement because it measures the 100 feet from the center of the drive aisle instead of the southerly curb. Most importantly, assuming that the Applicant could further shift the drive aisle to the north to meet the setback requirement, the problem with the site design as outlined in the Staff report and Findings remain the same. FINANCIAL OR BUDGET CONSIDERATION: None. VISION CONSIDERATION: None. Attachments: Resolution – Conditional Use Permit Revised Site Plan – Dairy Queen Prepared by: Adam Fulton, Planner Reviewed by: Meg McMonigal, Planning and Zoning Supervisor Kevin Locke, Community Development Director Approved by: Tom Harmening, City Manager City Council Meeting of December 20, 2010 (Item No. 8a) Page 2 Subject: Dairy Queen – Conditional Use Permit for In-Vehicle Service RESOLUTION NO. 10-___ A RESOLUTION OF DENIAL REGARDING THE APPLICATION OF DRF G & C, LLC FOR A CONDITIONAL USE PERMIT UNDER SECTION 36- 194(d)(11) OF THE ST. LOUIS PARK ZONING CODE RELATING TO ZONING TO PERMIT IN-VEHICLE SALES OR SERVICE (DRIVE-THROUGH USE) FOR PROPERTY ZONED C-2 GENERAL COMMERCIAL DISTRICT LOCATED AT 5001 EXCELSIOR BOULEVARD BE IT RESOLVED BY the City Council of the City of St. Louis Park: Findings 1. DRF G & C, LLC has made application to the City Council for a Conditional Use Permit under Section 36-194(d)(11) of the St. Louis Park Zoning Code for the purpose of permitting in- vehicle sales or service (drive-through use) within a C-2 General Commercial District located at 5001 Excelsior Boulevard for the legal description as follows, to wit: That part of Section 7, Township 28, North Range 24, West of the Fourth Principal Meridian, described as follows: Commencing at a point in the center line of Excelsior Avenue distance 901 feet Northeasterly along said center line from its intersection with the center line of Wooddale Avenue; thence Southeasterly at right angles to said center line of Excelsior Avenue a distance of 350 feet; thence Southwesterly parallel with said center line of Excelsior Avenue a distance of 70 feet; thence Northwesterly a distance of 350 feet to a point in the center line of Excelsior Avenue distant 70 feet Southwesterly from the point of beginning; thence Northeasterly to the point of beginning. Together with benefit of an easement for egress (not ingress) as set forth in deed filed as Document No. 2588026. 2. On June 16, 2010, the Planning Commission held a public hearing, received testimony from the public, discussed the application, and on a vote of 7-0 moved that the Planning Commission recommend denial of the proposed conditional use permit. 3. The City Council has reviewed the application for compliance with the applicable performance standards, general conditions and specific conditions, considered the advice and recommendation of the Planning Commission (Case No. 10-18-CUP) and the effect of the proposed in-vehicle sales or service (drive-through use) on the health, safety and welfare of the occupants of the surrounding lands, existing and anticipated traffic, parking and pedestrian conditions, the effect on the use, enjoyment and values of properties in the surrounding area, conformance with the goals and objectives of the Comprehensive Plan, and compliance with the intent of the Zoning Ordinance, and finds the following: a. The proposed in-vehicle sales/service does not comply with the Zoning Ordinance condition that states “drive-through facilities and stacking areas shall not be located within 100 feet of any parcel that is zoned residential and used or subdivided for residential use” (Section 36-194(d)(11)(a)) because the proposed drive-through stacking area is located within 73 feet of a residential parcel. At the December 6, 2010 City Council meeting, Dairy Queen representatives indicated that the drive- through stacking area could be relocated to meet this requirement. The indicated City Council Meeting of December 20, 2010 (Item No. 8a) Page 3 Subject: Dairy Queen – Conditional Use Permit for In-Vehicle Service relocation, however, would not eliminate any of the site design problems set forth in subparagraph 3.d. herein. b. The proposed modifications do not comply with Zoning Ordinance requirements for off-street parking (Section 36-361(Table A)) for the following reasons: i. The off-street parking requirement for the Dairy Queen restaurant is 76 spaces; ii. There are currently 28 off-street parking spaces available on the Dairy Queen site, causing the restaurant to be legally non-conforming in relation to the off- street parking requirements; iii. The construction of the in-vehicle sales/service facility will result in the loss of 6 off-street parking spaces, resulting in 22 off-street parking spaces available for customers and employees and increasing the non-conformity related to parking; iv. City Code Section 36-404 (4) states, “A nonconformity shall not be expanded in any manner.” v. The City Code does not make a distinction between restaurants with or without a drive-through in calculating parking requirements. c. The proposed modifications do not qualify for shared parking based on the Zoning Ordinance criteria for shared parking (Section 36-361 (f)) for the following reasons: i. No parking plan addressing peak parking demand for the Dairy Queen restaurant or the uses found in the Miracle Mile shopping center was submitted as part of the application for the in-vehicle sales/service use; ii. Applicant failed to submit other information necessary to determine if the conditions for shared parking are met, including information concerning the days and times for highest peak parking demands for each use proposed for shared parking; iii. Even if a shared parking plan had been submitted for Dairy Queen parking on the Miracle Mile property (the nearest proximate parking area), it is unlikely that the parking plan would meet ordinance criteria. It is not reasonable to conclude that the highest peak parking demand at the Dairy Queen restaurant and the retail stores in the east side of the Miracle Mile shopping center occurs at substantially different times of the day or week. d. The proposed in-vehicle sales/service does not comply with the Zoning Ordinance condition requiring the drive-through to be designed so it does not impede traffic or impair vehicular and pedestrian traffic movement, or exacerbate the potential for pedestrian and vehicular conflict (Sec. 36-194(d)(11)(d)) for the following reasons: i. The traffic analysis submitted by the applicant indicates that the total annual transactions at the Dairy Queen restaurant will increase by 33% if the in- vehicle service is approved; ii. The drive-through separates the majority of the Dairy Queen’s proposed on- site parking from the building entrance thereby requiring pedestrians to cross the drive-through and exacerbating the potential for pedestrian and vehicular conflict; iii. Vehicular entry to the drive-through from the intersection of Excelsior Boulevard and Park Center Boulevard will require customers to travel through the Miracle Mile parking lot before ordering, increasing traffic in the Miracle Mile parking lot; City Council Meeting of December 20, 2010 (Item No. 8a) Page 4 Subject: Dairy Queen – Conditional Use Permit for In-Vehicle Service iv. An increase in vehicular traffic in the Miracle Mile parking lot will impair pedestrian traffic movement and exacerbate the potential for pedestrian and vehicular conflicts within the parking lot; v. An increase in vehicular traffic entering the Dairy Queen site via the right- in/right-out access immediately west of the building will impair pedestrian traffic movement and exacerbate the potential for pedestrian and vehicular conflicts along Excelsior Boulevard and on the Dairy Queen site; vi. An increase in eastbound to westbound U-turn movements on Excelsior Boulevard at the intersection of Quentin Avenue will increase the difficulty for pedestrians, bicycles and other vehicles in navigating Excelsior Boulevard; vii. Proposed pedestrian routes within the Dairy Queen site show an indirect and inconvenient route from the Dairy Queen on-site parking to the building entrance, making it unlikely that pedestrians will use it to access the building. Pedestrians are more likely to take a straight-line route to the door, crossing auto traffic. This adds to the mixing of auto and pedestrian traffic and increases the likelihood of pedestrian and vehicular conflicts; viii. Long term traffic and sales volumes for Dairy Queen or other future operators of the restaurant and drive-through are unknown; ix. The addition of the drive-through changes the restaurant from a sit-down restaurant to one that primarily caters to drive-through customers. e. The existing site does not meet the landscaping requirements of the Zoning Ordinance (Section 36-364 (d)) and is legally non-conforming in this regard. There are currently two trees and 33 shrubs on the site, and the Zoning Ordinance requirement is for 17 trees and 102 shrubs. The proposed in-vehicle sales/service would increase the intensity of the non-conforming use on the site without addressing the landscaping non-conformity, which is prohibited by the City Code (Section 36-404 (3)). Furthermore, it is not reasonable to conclude that landscaping could be provided without further reducing the existing off-street parking on the site. f. The proposed in-vehicle sales/service use does not comply with the general Zoning Ordinance requirements for the issuance of a Conditional Use Permit (Section 36-365 (b)) for the following reasons: i. The proposed in-vehicle sales/service is not consistent with or supportive of important principles of the Comprehensive Plan; ii. The proposed drive-through will have a negative impact on the pedestrian environment of Excelsior Boulevard; iii. The use does not meet the standard Conditional Use requirements of the Zoning Ordinance for an in-vehicle sales/service use in the C-2 Zoning District; iv. The use will have the adverse impact of adding to the number of U-turn traffic movements on Excelsior Boulevard for west-bound traffic; v. The use will have the adverse impact of negatively affecting the accessibility of properties in close proximity to the proposed conditional use, for the following reasons: a. Auto traffic and congestion will increase in the area, both within the Dairy Queen, Miracle Mile and Pannekoeken/Baja Sol sites; b. Driveway access to the Pannekoeken/Baja Sol site would be limited to the east side of the building, with the west side access becoming an City Council Meeting of December 20, 2010 (Item No. 8a) Page 5 Subject: Dairy Queen – Conditional Use Permit for In-Vehicle Service exit-only; c. Pedestrian activity will be negatively impacted to and from the DQ and adjacent properties; d. Noise impacts will result from idling cars, car stereos, and other vehicle-related noise sources. g. The proposed in-vehicle sales/service use does not comply with the Zoning Ordinance requirement that the use be in conformance with the Comprehensive Plan, including any provisions of the redevelopment chapter and the plan by neighborhood policies (Section 36-194 (d)(11)(g)) for the following reasons: i. The use is not consistent with the Land Use Chapter goals for this area (Park Commons) to improve pedestrian accessibility and create a walkable town center. Page IV-B20 of the Comprehensive Plan states: “Future redevelopment of the Park Commons area should focus on adding complementary land uses that support and complete the “town center” concept and completing the internal network of streets and pathways that create a cohesive and connected downtown neighborhood.” The addition of the drive- through changes the restaurant from a sit-down restaurant to one that primarily caters to drive-through customers. Additionally, the proposed pathways internal to the DQ site do not provide a direct, useful route for pedestrians trying to reach the building entrance. ii. The use is not consistent with goals for pedestrian connections and safety as outlined in the Comprehensive Plan, including Goal 1, Policy 1A (page IV- B21): “Establish unique and cohesive street character for major community streets, such as Cedar Lake Road, Minnetonka Boulevard, Excelsior Boulevard, and Louisiana Avenue, emphasizing pedestrian connections and safety, landscaping, decorative lighting, and street furniture for the use and enjoyment of the public.” iii. The use does not minimize traffic conflicts as noted in the goals and policies for commercial corridors within the community as provided at Page IV-B22, Goal 2, Policies 2A and 2B of the Comprehensive Plan: a. 2-A: Minimize the adverse impacts associated with commercial corridor development using design, performance standards, site planning techniques, and buffering. b. 2-B: Enhance commercial corridors’ compatibility with nearby residential areas. iv. The expansion of the restaurant with a drive-through use is not consistent with the Plan by Neighborhood Chapter development guidelines prohibiting “car washes, outdoor storage and sales, and similar heavier commercial uses” in this area (Minikahda Vista Neighborhood Plan, Adopted May 17, 1999). 4. The contents of Planning Case File 10-18-CUP are hereby entered into and made part of the public hearing record and the record of decision for this case. Conclusion The Conditional Use Permit to permit in-vehicle sales or service (drive-through use) at the location described is hereby denied based on the findings set forth above. City Council Meeting of December 20, 2010 (Item No. 8a) Page 6 Subject: Dairy Queen – Conditional Use Permit for In-Vehicle Service NOW THEREFORE BE IT RESOLVED by the City Council of the City of St. Louis Park: The applicant’s request for a Conditional Use Permit to permit in-vehicle sales or service (drive-through use) is hereby denied based on the findings set forth above. Reviewed for Administration Adopted by the City Council December 20, 2010 City Manager Mayor Attest: City Clerk City Council Meeting of December 20, 2010 (Item No. 8a) Subject: Dairy Queen – Conditional Use Permit for In-Vehicle Service Page 7 Meeting Date: December 20, 2010 Agenda Item #: 8b Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Namakan Properties - Registered Land Survey (RLS) Hwy 7 / Blake Road. RECOMMENDED ACTION: Motion to adopt a resolution approving a Registered Land Survey for Namakan Properties, LLC at Hwy 7 and Blake Road. POLICY CONSIDERATION: Should the City allow the re-conveyance of excess MnDOT land for private use? BACKGROUND: The parcel owned by Namakan Properties is located on the southeast quadrant of State Highway 7 and Blake Road. The property is improved with a small retail building that is currently occupied with Restwell, Carpet King and The Little Gym. The building also has a vacant tenant space that cannot be leased due to insufficient parking. There is a considerable amount of excess MnDOT right-of-way adjacent to the building, and Namakan Properties would like to purchase some of the land so they can expand the parking lot. The additional parking will enable them to lease the remaining tenant space. Registered Land Survey (RLS): City Council approval of an RLS is the vehicle for splitting the MnDOT land into two parcels. One parcel will be retained by MnDOT, the other will be conveyed to Namakan Properties. Process for Re-conveyance of MnDOT Land: State law requires the sale of MnDOT land to be conveyed through the city first, then the city may sell it to Namakan Properties. The transactions are set up to be simultaneous, so the city would own the land for only a moment. City Council approved a purchase agreement on November 15, 2010. The agreement authorizes the city to sell the land to Namakan Properties, and it requires Namakan Properties to pay all expenses associated with the transaction. The purchase price of the MnDOT land is $44,500. An additional $1,000 would be paid by Namakan Properties to cover city expenses. The agreement can be executed when the RLS is approved by all parties including the city. Namakan Properties, MnDOT and Hennepin County are in agreement on the RLS. The final step is approval of the RLS by the city. City Council Meeting of December 20, 2010 (Item No. 8b) Page 2 Subject: Namakan Properties - Registered Land Survey (RLS) Hwy 7 / Blake Road MnDOT Review: Namakan Properties first expressed an interest in the MnDOT land early in 2009. At the time, MnDOT was beginning a reconstruction of the Highway 7/Blake Road intersection, so the request was deferred until the improvements were completed (October 2009). At the conclusion of the project, MnDOT determined there was excess land that could be sold, and the process was initiated. MnDOT determined it only needed approximately 15 feet from the edge of Blake Road and the Highway 7 frontage road, and was willing to convey the remaining land. (See illustration) City Review: Staff reviewed the proposal and determined that more than 15 feet of right-of-way between the Namakan Property and Blake Road should be preserved. While the MnDOT improvements alleviated some visibility and safety issues at the Highway 7/Blake Road intersection; the intersection is still congested. Therefore, it is reasonable to assume that additional inter- section improvements may be needed in the future. In addition to the potential for future intersection improvements, the city also owns a monument sign in the MnDOT property which MnDOT determined to be excess, and that staff feels should not be sold. Staff recommended that a significant portion of the right-of-way be retained by MnDOT at the intersection, and the remaining right-of-way adjacent to the new cul-de-sac be conveyed. This gives MnDOT sufficient space for future intersection improvements, it keeps the city monument on public property, and the property proposed to be conveyed is sufficient in size to give Namakan Properties the number of parking spaces needed to lease the remaining tenant space in the building. The recommendation was accepted by MnDOT and Namakan Properties. Easements: There are three utilities that run north-south across the property that will be protected by easements. Easements are not allowed to be shown on an RLS, so all easements will be recorded by separate written documents at the same time as the RLS. Excess MnDOT property Remain MnDOT property. Excess MnDOT property MnDOT Proposal City Proposal City Council Meeting of December 20, 2010 (Item No. 8b) Page 3 Subject: Namakan Properties - Registered Land Survey (RLS) Hwy 7 / Blake Road Sidewalk The Subdivision Ordinance requires the construction of sidewalk along all public streets. Staff recommends as a condition of approval that a sidewalk be constructed along the north property line directly in front of the retail building. The sidewalk would terminate at the cul-de-sac directly across from the trail leading from the cul-de-sac to the Highway 7/Blake Road intersection. (See attached preliminary RLS document for location of the MnDOT trail.) Parking Lot: As noted above, Namakan Properties plans to expand the parking lot into the vacated MnDOT property. The illustration below shows how a parking lot could be arranged in the space. The illustration is conceptual; it will need to meet all city requirements for landscaping and dimensions. These will be addressed when a parking lot permit application is submitted next spring. The proposed parking lot would replace a non-conforming paved area currently on the MnDOT property that is informally being used for parking. City Monument: The city monument is currently in the MnDOT right-of-way, and is protected by an easement in favor of the city. This arrangement will remain in place, and is unaffected by the proposed RLS. Next Step: If the council approves the RLS, then the city will execute the purchase agreement previously approved by the council on November 15, 2010, and the RLS will be recorded. After the transaction is complete, Namakan Properties will expand the parking lot in the spring. FINANCIAL OR BUDGET CONSIDERATION: The re-conveyance of MnDOT land would place more land in the private sector, and increase the city tax base at no cost to the city. City Council Meeting of December 20, 2010 (Item No. 8b) Page 4 Subject: Namakan Properties - Registered Land Survey (RLS) Hwy 7 / Blake Road VISION CONSIDERATION: The re-conveyance would enhance the commercial property, and allow the retail building to better meet the needs of the neighborhood. Attachments: Site Map Preliminary Registered Land Survey Registered Land Survey Resolution Prepared by: Gary Morrison, Assistant Zoning Administrator Reviewed by: Meg McMonigal, Planning & Zoning Supervisor Kevin Locke, Community Development Director Approved by: Tom Harmening, City Manager City Council Meeting of December 20, 2010 (Item No. 8b) Page 5 Subject: Namakan Properties - Registered Land Survey (RLS) Hwy 7 / Blake Road SITE MAP City Council Meeting of December 20, 2010 (Item No. 8b) Page 6 Subject: Namakan Properties - Registered Land Survey (RLS) Hwy 7 / Blake Road Preliminary Registered Land Survey (RLS) City Council Meeting of December 20, 2010 (Item No. 8b) Page 7 Subject: Namakan Properties - Registered Land Survey (RLS) Hwy 7 / Blake Road Registered Land Survey (RLS) City Council Meeting of December 20, 2010 (Item No. 8b) Page 8 Subject: Namakan Properties - Registered Land Survey (RLS) Hwy 7 / Blake Road RESOLUTION NO. 10-____ RESOLUTION GIVING APPROVAL FOR A REGISTERED LAND SURVEY (RLS) FOR NAMAKAN PROPERTIES AT HIGHWAY 7 AND BLAKE ROAD BE IT RESOLVED BY the City Council of St. Louis Park: Findings 1. Namakan Properties, LLC and Minnesota Department of Transportation, owners and subdividers of the land proposed for a Registered Land Survey have submitted an application for approval of registered land survey in the manner required under the St. Louis Park Ordinance Code, and all proceedings have been duly had thereunder. 2. The proposed Registered Land Survey has been found to be in all respects consistent with the City Plan and the regulations and requirements of the laws of the State of Minnesota and the ordinances of the City of St. Louis Park. 3. The proposed Registered Land Survey is situated upon the following described lands in Hennepin County, Minnesota, to-wit: That part of Tract DD lying Westerly of the following line: Beginning at a point on the Northerly line of said Tract DD, which point is 79.89 feet Southwesterly from the most Northerly corner of said Tract DD, as measured along said Northerly line of Tract DD; thence Southerly to a point in the Southerly right-of-way line of State Highway No. 7, which point is 100 feet Southwesterly from the intersection of said Southerly right of way line with Easterly line of said Tract DD; thence continuing Southerly along the last described course to a point in the South line of said Tract DD, which point is 100 feet West from the Southeast corner of said Tract DD, as measured along said South line and there terminating, except that part thereof lying west of a line distant 354 feet East, parallel with and measured at right angles to the West line of said Tract DD, Registered Land Survey No. 1058, County of Hennepin and All the part of Tract DD, Registered Land Survey No. 1058, lying West of a line distant 354 East parallel with and measured at right angles to the West line of said Tract DD and its North extension. Conclusion 1. The proposed Registered Land Survey is hereby approved and accepted by the City as being in accord and conformity with all ordinances, City plans and regulations of the City of St. Louis Park and the laws of the State of Minnesota, provided, however, that this approval is made subject to the opinion of the City Attorney and Certification by the City Clerk subject to the following conditions: a. A sidewalk shall be constructed along the north property line beginning at the east property line of Tract A, and extending westerly to the entrance of the cul-de-sac. City Council Meeting of December 20, 2010 (Item No. 8b) Page 9 Subject: Namakan Properties - Registered Land Survey (RLS) Hwy 7 / Blake Road b. Drainage and utility easements shall be drafted by Namakan Properties as required by the City Engineer, and recorded simultaneously with the RLS. c. The developer or owner shall pay an administrative fee of $750 per violation of any condition of this approval. 2. The City Clerk is hereby directed to supply two certified copies of this Resolution to the above-named owner and subdivider, who is the applicant herein. 3. The Mayor and City Manager are hereby authorized to execute all contracts required herein, and the City Clerk is hereby directed to execute the certificate of approval on behalf of the City Council upon the said Registered Land Survey when all of the conditions set forth in Paragraph No. 1 above and the St. Louis Park Ordinance Code have been fulfilled. 4. Such execution of the certificate upon said Registered Land Survey by the City Clerk, as required under Section 26-123(1)j of the St. Louis Park Ordinance Code, shall be conclusive showing of proper compliance therewith by the subdivider and City officials charged with duties above described and shall entitle such Registered Land Survey to be placed on record forthwith without further formality. The City Clerk is instructed to record certified copies of this resolution in the Office of the Hennepin County Register of Deeds or Registrar of Titles as the case may be. Reviewed for Administration: Adopted by the City Council December 20, 2010 City Manager Mayor Attest: City Clerk Meeting Date: December 20, 2010 Agenda Item #: 8c Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Second Reading - Ordinance Providing for a Local Lodging Tax. RECOMMENDED ACTION: Motion to adopt second reading of an Ordinance providing for a Local Lodging Tax, approve summary, and authorize publication. POLICY CONSIDERATION: Does the City Council support the establishment of a 3% local lodging tax to fund the operation of a St. Louis Park Convention & Visitors Bureau (CVB)? At the December 6th Study Session it was the consensus of the City Council to proceed with consideration of the 2nd Reading of the ordinance which creates a lodging tax and undertake the necessary steps to form a CVB. As a matter of policy, the Council expressed its intent to review the continuation of the tax after the proposed CVB has been in operation for 5 years. The proposed ordinance indicates that the effective date of the lodging tax is March 1, 2011. BACKGROUND: For over a year the City Council has been discussing the possible formation of a convention and visitors bureau (CVB) to promote St. Louis Park as a destination for all forms of tourism including visitors, meetings, conferences, conventions, festivals and special events. During that period much research has been conducted on the concept and considerable public process has occurred with local stakeholders (including six meetings with the St. Louis Park hotels) in conjunction with the TwinWest Chamber of Commerce. In addition, the City Council has reviewed the formal documents needed to establish a CVB so as to affirm the premise and structure of the proposed organization. These documents included a Concept Plan, Articles of Incorporation, Bylaws, Operating Agreement, preliminary budget and Lodging Tax Ordinance. At the October 4th Study Session it was the consensus of the City Council to proceed with the formal establishment of a CVB to further the economic development and vitality of St. Louis Park. Such a process involves the holding of a public hearing, the adoption of an ordinance establishing a local lodging tax, and the subsequent approval of an Operating Agreement between the City and the CVB. On November 1st, a public hearing was held to provide the community the opportunity to officially comment on the proposed Ordinance. A representative of the Doubletree Hotel was in attendance to express opposition to the creation of a lodging tax. After discussion, the Council adopted first reading of the proposed Ordinance and set the second reading for November 15th. Subsequent to November 1 representatives of some of the other local hotels came forward and voiced their concerns regarding the proposed tax. As a result, the second and final reading of the ordinance was removed from the November 15th City Council agenda in order for staff to meet with these representatives again to further understand their concerns. Staff then met with them on November 23rd. At that meeting the hotel representatives voiced several concerns which are summarized as follows: City Council Meeting of December 20, 2010 (Item No. 8c) Page 2 Subject: Second Reading - Ordinance Providing for a Local Lodging Tax The first is that the City has not demonstrated quantitatively the anticipated economic value or return on investment (ROI) to be derived from the proposed CVB. When asked what benchmark or ROI they would need to see in order for the proposed CVB to earn their endorsement, they indicated that the room revenue generated by such an organization would have to be approximately 10 times the room tax revenue provided. Thus if the CVB receives, for instance, $600,000 in room tax revenue it would need to demonstrate that it generated $6 million in additional hotel revenue to be considered a worthwhile venture. The second concern was similar and that is the City has not demonstrated precisely how much incremental out-of-market business was anticipated to be captured by the CVB. The third concern was that whatever incremental economic value the CVB generates it would not offset the potential loss of revenue to properties in neighboring communities (such as Golden Valley, Plymouth and Minnetonka) that have no such tax, thus placing their properties at a competitive disadvantage. They were particularly concerned about how large corporate customers in the area (such as Allianz, General Mills and Cargill) would react to such a tax, whether they would see the value of a CVB, and whether they would steer their business to neighboring communities without the tax. The fourth concern related to how such an organization demonstrates that its activities are not simply re-aggregating business the hoteliers have already captured or plan to capture. Absent satisfactory responses to the above, the hoteliers indicated they could not support the proposed lodging tax. Having said that, the hoteliers also indicated that if the City proceeded and approved the tax they would nonetheless be supportive of the new CVB and would lend their assistance to make it successful. At the December 6th Study Session the City Council reviewed the concerns expressed by the hoteliers. Upon discussion, it was the consensus of the City Council to proceed with consideration of the 2nd Reading of the ordinance establishing a lodging tax and undertake the necessary steps to form the CVB. As a matter of policy, the Council expressed its intent to review the continuation of the tax after the proposed CVB has been in operation for 5 years. Staff was asked to provide examples of metrics by which the City Council could evaluate the CVB’s operation. Such metrics are included in the attached draft Business Plan and Sales & Marketing Plan for the proposed CVB. Also attached are sample Performance Goals and Measures from the Eagan and Fargo CVBs which could be utilized in such an evaluation. OBSERVATIONS: In light of the concerns raised by the hoteliers, staff would like to share the following thoughts. The purpose of the lodging tax is to fund a convention and visitors bureau whose primary purpose is to market the city so as to generate commerce in St. Louis Park. Staff would note that the most recent Explore Minnesota Economic Impact Study revealed that for every $1 invested in tourism marketing it returned an estimated $53 in gross sales, $20.40 in wages and $4.60 in state and local taxes. A properly run CVB has the potential to generate substantial direct and indirect revenue for St. Louis Park through its marketing and sales efforts. Precisely what the full economic impact of such an organization is likely to be is frankly unknown at this juncture. Any customized study to determine such an impact would ultimately be conjecture as there are so many variables and unknowns that could come into play. Admittedly, in the short term, as the proposed CVB begins its operations it is not likely to provide much of a return on investment. In the long run however a CVB with well-reasoned business and marketing plans properly executed should generate a substantial economic return for the community. What we do know is that the community and its numerous offerings are not currently being promoted to their fullest extent City Council Meeting of December 20, 2010 (Item No. 8c) Page 3 Subject: Second Reading - Ordinance Providing for a Local Lodging Tax and, absent an organization like a CVB, they likely won’t be. We also know there are market opportunities to be gained in the areas of leisure tourism, meetings and conventions, and special events if St. Louis Park were to package and promote its various advantages. Another thing to be kept in mind is that while the proposed CVB’s primary purpose is to market the city so as to generate commerce, that would not be its sole responsibility. Other activities will include promotion and enhancement of local festivals and events as well as elevating the St. Louis Park brand within the local and regional marketplace. These are intangibles but nonetheless help strengthen both the fabric and identity of the community. As for losing customers to neighboring communities without such a tax, hospitality industry representatives have indicated that most travelers are brand driven. This means that the type of traveler that customarily chooses, for example, to stay at the Hilton Homewood Suites in St. Louis Park is unlikely to choose to stay at the Holiday Inn Express in Golden Valley simply to avoid a 3% room tax. While the hotel industry is indeed highly competitive (especially for meetings and conventions) there are more significant factors (such as facility amenities, services and rates) that typically determine where these events are held and where lodging customers choose to spend the night other than the room tax. Ultimately it will be the CVB board and staff’s challenge to define the organization’s goals, develop appropriate business and marketing plans, measure its performance and demonstrate the organization’s economic value both locally and to area corporations. That is why the selection of a seasoned and qualified CVB staff will be so critical to its ultimate success. OTHER CITIES WITH LODGING TAXES Currently, 26 metro area communities have adopted a lodging tax. As seen below nearly all of these communities have a room tax rate of at least 3%. TWIN CITIES GREATER METROPOLITAN VICINITY Total Lodging Tax Rate Anoka 3% Apple Valley 3% Blaine 3% Bloomington 7% Brooklyn Center 6% Brooklyn Park 3% Burnsville 3% Coon Rapids 3% Eagan 3% Fridley 3% Ham Lake 3% Hastings 2% Inver Grove Heights 3% Lakeville 3% Maple Grove 3% Minneapolis * 5.625% Moundsview 3% Richfield 3% Roseville 3% Shakopee 3% Shoreview 3% St. Paul **3% & 6% Stillwater/Oakdale-2009 3% Waconia 3% *Minneapolis: 2.625% for lodging properties with more than 50 units, plus a 3% entertainment tax that applies to all lodging accommodations City Council Meeting of December 20, 2010 (Item No. 8c) Page 4 Subject: Second Reading - Ordinance Providing for a Local Lodging Tax **St. Paul: 3% for lodging properties with less than 50 units; 6% for those with 50 or more units NOTE: Bloomington, Brooklyn Center, Minneapolis and St. Paul all have special legislation to exceed the 3% lodging tax limit LOCAL LODGING TAX ORDINANCE: The primary revenue source for operating convention and visitors bureaus in Minnesota is a local lodging tax. Minn Stat. 469.190, Subd. 1 authorizes local governments to adopt an ordinance imposing a tax of up to three percent (3%) of the gross receipts of lodging at a hotel, motel, rooming house, tourist court or resort.    Under the proposed Ordinance, the tax shall be paid to the City by the operator of the local lodging establishments (of which there are currently six) not later than 25 days after the end of the month in which the taxes are collected. The proposed Ordinance will take effect March 1, 2011. The City Attorney assisted in drafting the proposed Ordinance. Pursuant to state statute, ninety-five percent of gross proceeds from the lodging tax must be used to fund a local convention or tourism bureau for the purpose of marketing and promoting the city as a tourist or convention destination. According to a Minnesota Attorney General’s opinion, tax proceeds collected are limited to expenditures for advertising or similar types of marketing or promotion of the City as a tourist or convention center that enhances the attractiveness of the community. FINANCIAL OR BUDGET CONSIDERATION: Based on a conservative estimate of revenues from a 3% lodging tax, the first full year budget for the CVB is to be approximately $565,000. NEXT STEPS: Upon adoption of the second reading of the proposed Ordinance, the Articles of Incorporation will be filed with the Secretary of State’s Office and members of the CVB board of directors will be recruited and selected. The City Council will also be asked to formally consider an Operating Agreement between the City and the proposed CVB. A meeting of the CVB board of directors will also be held in the coming weeks at which officers will be elected and founding documents (such as the Bylaws, Operating Agreement, Business Plan, and Job Descriptions) will be considered. Recruitment for a president of the CVB will begin in the first quarter of next year. VISION CONSIDERATION: St. Louis Park is committed to being a connected and engaged community. The intent behind the formation of a CVB is that it would strengthen awareness of St. Louis Park as a convention and visitor destination and stimulate additional economic activity within the community. Attachments: Lodging Tax Ordinance Ordinance Summary Draft CVB Business Plan Draft CVB Sales and Marketing Plan Sample Performance Goals and Measures Prepared by: Greg Hunt, Economic Development Coordinator Reviewed by: Kevin Locke, Community Development Director Approved by: Tom Harmening, City Manager and EDA Executive Director City Council Meeting of December 20, 2010 (Item No. 8c) Page 5 Subject: Second Reading - Ordinance Providing for a Local Lodging Tax ORDINANCE NO. ____-10 AN ORDINANCE AMENDING CHAPTER 8 TO ADD A NEW ARTICLE PROVIDING A LOCAL LODGING TAX THE CITY COUNCIL OF THE CITY OF ST. LOUIS PARK ORDAINS: Section 1. Chapter 8 of the St. Louis Park Code of Ordinances is amended by adding a new Article IV to read as follows: ARTICLE IV LOCAL LODGING TAX Sec. 8-800. Definitions. Unless otherwise expressly stated, wherever used in this Article, the following words shall have the meanings given to them by the Section. Lodging means the furnishing for consideration of lodging at a hotel, motel, rooming house, tourist court, or resort, other than the renting or leasing of it for a continuous period of thirty (30) calendar days or more. Operator means a person who provides lodging to others, or any office, agent or employee of such person. Sec. 8-801. Imposition of Tax. There is hereby imposed a tax of three percent (3%) on the gross receipts from the furnishing for consideration of lodging. Sec. 8-802. Collection. Each operator shall collect the tax imposed by this Article at the time rent is paid. The tax collections shall be held in trust by the operator for the City. The amount of tax shall be separately stated from the rent charged for the lodging. Sec. 8-803. Payment and Returns. The taxes imposed by this Article shall be paid by the operator to the City not later than twenty-five (25) calendar days after the end of the month in which the taxes were collected. At the time of payment the operator shall submit a return upon such forms and containing such information as the City may require. The return shall contain the following minimum information: (1) The total amount of rent collected for lodging during the period covered by the return. (2) The amount of tax required to be collected and due for the period. City Council Meeting of December 20, 2010 (Item No. 8c) Page 6 Subject: Second Reading - Ordinance Providing for a Local Lodging Tax (3) The signature of the person filing the return or that of his agent duly authorized in writing. (4) The period covered by the return. (5) The amount of uncollectible rental charges subject to the lodging tax. The operator may take a credit against taxes payable the amount of taxes previously paid for rent that was not actually collected. Sec. 8-804. Examination of Returns, Adjustments, Notices, Demands and Audit. After a return is filed, the City shall examine it and make any investigation or examination of the records and accounts of the person making the return deemed necessary for determining its correctness including a formal audit. The tax computed on the basis of such examination shall be the tax to be paid. If the tax due is found to be greater than that paid, such excess shall be paid to the City within ten (10) calendar days after receipt of a notice thereof given either personally or sent by registered mail to the address shown on the return. If the tax paid is greater than the tax found to be due, the excess shall be refunded to the person who paid the tax to the City within ten (10) calendar days after determination of such refund. Sec. 8-805. Refunds. Any person may apply to the City for a refund of taxes paid for a prescribed period in excess of the amount legally due for that period, provided that no application for refund shall be considered unless filed within one year after such tax was paid, or within one year from the filing of the return, whichever period is the longer. The City shall examine the claim and make and file written findings thereon denying or allowing the claim in whole or in part and shall mail a notice thereof by registered mail to such person at the address stated upon the return. If such claim is allowed in whole or in part, the City shall credit the amount of the allowance against any taxes due under this Article from the claimant and the balance of the allowance, if any, shall be paid by the City to the claimant. Sec. 8-806. Failure to File a Return. If any operator required by this Article to file a return shall fail to do so within the time prescribed, or shall make, willfully or otherwise, an incorrect, false, or fraudulent return, the operator shall, upon written notice and demand, file such return or corrected return within five (5) calendar days of receipt of such written notice and shall at the same time pay any tax due on the basis thereof. If such person shall fail to file such return or corrected return, the City shall make a return or corrected return, for such person from such knowledge and information as the City can obtain, and assess a tax on the basis thereof, which tax (less any payments theretofore made on account of the tax for the taxable period covered by such return) shall be paid within five (5) calendar days of the receipt of written notice and demand for such payment. Any such return or assessment made by the City shall be prima facie correct and valid, and such person shall have the burden of establishing its incorrectness or invalidity in any action or proceeding in respect thereto. If any portion of a tax imposed by this Article is not paid within thirty (30) calendar days after it is required to be paid, the City Attorney may institute such legal action as may be necessary to recover the amount due plus interest, and costs and disbursements. Upon a City Council Meeting of December 20, 2010 (Item No. 8c) Page 7 Subject: Second Reading - Ordinance Providing for a Local Lodging Tax showing of good cause, the City may grant an operator one thirty (30) day extension of time within which to file a return and make payment of taxes as required by this Article provided that interest during such period of extension shall be added to the taxes due at the rate of one and one-half percent (1.5%) per month. Sec. 8-807. Interest. The amount of tax not timely paid shall bear interest at the rate of one and one-half percent (1.5%) per month from the time such tax should have been paid until paid. Any interest shall be added to the tax and be collected as part thereof. Sec. 8-808. Violations. Any person who shall willfully fail to make a return required by this Article; or who shall fail to pay the tax after written demand for payment, or who shall fail to remit the taxes collected or any interest imposed by this Article after written demand for such payment or who shall refuse to permit the City to examine the books, records and papers under his or her control, or who shall willfully make any incomplete, false or fraudulent return shall be guilty of a misdemeanor. Sec. 8-809. Use of Proceeds. Ninety five percent (95%) of the proceeds obtained from the collection of taxes pursuant to this Article shall be used in accordance with Minnesota Statutes, section 469.190 as the same may be amended from time to time to fund a local convention or tourism bureau for the purpose of marketing and promoting the City as a tourist or convention center. Sec. 8-810. Appeals. Any operator aggrieved by any notice, order or determination made by the City under this Article may file a petition for review of such notice, order or determination detailing the operator's reasons for contesting the notice, order or determination. The petition shall contain the name of the petitioner, the petitioner's address and the location of the lodging subject to the order, notice or determination. The petition for review shall be filed with the City Clerk within ten (10) calendar days after the notice, order or determination for which review is sought has been mailed or served upon the person requesting review. Upon receipt of the petition the City Manager, or the Manager's designee, shall set a date for a hearing and give the petitioner at least five (5) calendar days' prior written notice of the date, time and place of the hearing. At the hearing, the petitioner shall be given an opportunity to show cause why the notice, order or determination should be modified or withdrawn. The petitioner may be represented by counsel of petitioner's choosing at petitioner's own expense. The hearing shall be conducted by the City Manager or the Manager's designee, provided only that the person conducting the hearing shall not have participated in the drafting of the order, notice or determination for which review is sought. The person conducting the hearing shall make written findings of fact and conclusions based upon the applicable sections of this Article and the evidence presented. The person conducting the hearing may affirm, reverse or modify the notice, order or determination made by the City. Any decision rendered by the City Manager pursuant to this subdivision may be appealed to the City Council. A petitioner seeking to appeal a decision must file a written notice of appeal with the City Clerk within ten (10) calendar days after the decision has been mailed to the petitioner. The matter will thereupon be placed on the Council agenda as soon as is practical. City Council Meeting of December 20, 2010 (Item No. 8c) Page 8 Subject: Second Reading - Ordinance Providing for a Local Lodging Tax The Council shall then review the findings of fact and conclusions to determine whether they were correct. Upon a determination by the Council that the findings and conclusions were incorrect, the Council may modify, reverse or affirm the decision of the City Manager or his designee upon the same standards as set forth in this subdivision. Section 2. This Ordinance shall take effect March 1, 2011. Public Hearing First Reading November 1, 2010 Second Reading December 20, 2010 Summary Ordinance Published December 30, 2010 Ordinance takes effect March 1, 2011 Reviewed for Administration: Adopted by the City Council December 20, 2010 City Manager Mayor Attest: Approved as to form and execution: City Clerk City Attorney City Council Meeting of December 20, 2010 (Item No. 8c) Page 9 Subject: Second Reading - Ordinance Providing for a Local Lodging Tax SUMMARY ORDINANCE NO. _____-10 AN ORDINANCE AMENDING CHAPTER 8 TO ADD A NEW ARTICLE PROVIDING A LOCAL LODGING TAX This ordinance amends Chapter 8 business and licensing provisions for the City of St. Louis Park providing for a Local Lodging Tax. This ordinance shall take effect March 1, 2011. Adopted by the City Council December 20, 2010 Jeffrey W. Jacobs /s/ Mayor A copy of the full text of this ordinance is available for inspection with the City Clerk. Published in St. Louis Park Sailor: December 30, 2010       Business Plan   For   St. Louis Park   Convention and Visitors  Bureau        Experience St. Louis Park         Proposed  September 2010      City Council Meeting of December 20, 2010 (Item No. 8c) Subject: Second Reading - Ordinance Providing for a Local Lodging Tax Page 10 2    Table of Contents     Executive Summary           3  Corporate Name            4  Mission Statement/Vision Statement/Values      4  Implementation Timeline         5  Organization Development and Governance Recommendations      6  Composition of the Board of Directors        7  Organizational Committee Structure        8  Physical Location          10  Administrative Start‐Up Tasks        10  Staffing and Leadership         12  Assessment and Inventory of Key Stakeholders and Critical Partnerships    13  Evaluation Metrics          16  Financial Recommendations         21  Communications and Media Relations Suggestions      24  Marketing Strategies and Services        26  General Conclusions          27        Exhibits  A ‐ Inventory of Properties and Amenities  B ‐ Timeline  C – Formation of Organization –  Recommended Legal Steps  D ‐ Operating Agreement  E – Articles of Incorporation   F – Corporate Bylaws  G – Writing of the Organizers  H – Board of Directors Job Description  I – Start‐Up Expenditures  J – Director of Sales and Marketing Job  Description  K – President’s Selection Process and  Timeline  L – Leadership Attributes      M – President’s Position Announcement  N – Employee Benefits  O – Tourism Glossary  P – Annual Operating Budget  Q – Marketing Plan    Forms  A – Name Reservation  B – Articles of Incorporation Form  C – SS‐4  D – 8718  E – 1024  F – Application for Business Registration  G – Charitable Registration (if applicable)  H– 990  I – 990T (if applicable)        City Council Meeting of December 20, 2010 (Item No. 8c) Subject: Second Reading - Ordinance Providing for a Local Lodging Tax Page 11 3    Executive Summary   In 2009, the St. Louis Park City Council requested City staff to explore the viability of  establishing a convention and visitors bureau for St. Louis Park given the increasing number of  hotel rooms and other amenities available within the city.      In partnership with the TwinWest Chamber of Commerce, the City met with each St. Louis Park  hotelier and held focus groups with community partners, including business, recreation and  educational institutions.  While each stakeholder group had its own observations and  questions, several concepts became clear:      • St. Louis Park has unrealized potential for increasing its annual number of business and  leisure travelers;  • St. Louis park has a sufficient number of hotel rooms, meeting spaces, community  amenities, and attractions to accommodate such travelers;  • St. Louis Park could benefit greatly from community marketing efforts and the  coordinated services that a convention and visitors bureau could provide;  • St. Louis Park has the ability to generate sufficient revenue to support an effective  marketing initiative;  • St. Louis Park is a destination that should be marketed for all it has to offer.    Although the City introduced coordinated marketing into its general operations through the  creation of a communications division approximately three years ago, this division is tasked  with marketing the City’s services, programs, initiatives and goals to residents, business owners  and the Twin Cities at large.  The City’s role is not to engage in the promotion and marketing of  private businesses, which traditionally is the role of a convention and visitors bureau.      Multiple factors support St. Louis Park as a destination for travelers.  Whether it’s the pivotal  location, the variety of hotels and restaurants, or numerous attractions in and around the  community, St. Louis Park has much to offer.  An initial inventory of these properties,  businesses and attractions are available for review in Exhibit A.         The creation of a convention and visitors bureau would allow St. Louis Park to increase its  market potential for attracting leisure travelers, meetings and events.  The Convention and  Visitors Bureau would be charged with marketing St. Louis Park as a local, regional, national,  and international destination conveniently located within the Twin Cities metropolitan area and  to provide coordinated customer service to business and leisure travelers, area facilities,  employers and community organizations.    Given its convenient central location, St. Louis Park is increasingly being recognized as a  destination for business and leisure travelers.  Yet St. Louis Park lacks the means for making the  travelling public fully aware of all that it has to offer.  Currently there is no such organization  City Council Meeting of December 20, 2010 (Item No. 8c) Subject: Second Reading - Ordinance Providing for a Local Lodging Tax Page 12 4    charged with marketing the city and packaging its venues and amenities through coordinated  effort.  Such activities do not coincide with the mission of the City of St. Louis Park or that of the  TwinWest Chamber of Commerce.  Nor are convention and visitors bureaus in nearby cities  likely to promote St. Louis Park as a destination beyond “overflow”.  Area businesses have  indicated that they would appreciate the convenience of a local convention and visitors bureau  and would utilize its services so as to direct their guests to places to stay, east, shop and  recreate while in town.  Local meeting, events and sports tournament organizers have likewise  expressed a need for event planning, visitor services and promotion.      The formation of the St. Louis Park Convention and Visitors Bureau could strengthen awareness  of St. Louis Park as a convention and visitor destination, fulfill the community’s needs as  described above, and generate additional economic activity within the city.       Corporate Name   The corporate name shall be the St. Louis Park Convention and Visitors Bureau.        Mission Statement/Vision Statement/Values   Mission Statement:  Strengthen the awareness of St. Louis Park as a convention and visitor  destination to stimulate economic development and growth for the community.    Vision Statement:  St. Louis Park is a uniquely vibrant destination attracting travelers of all  kinds for unforgettable experiences that must be shared.      Core Values:  Our core values define the nature and quality of our relationships with our key  stakeholders.  They form the foundation on which we perform and conduct ourselves.  The  values underlie our work, how we interact, and which strategies we employ to fulfill our  mission.   • Passion . . . to be passionate about representing St. Louis Park’s tourism industry, our  properties and attractions, thereby delivering superior value to our stakeholders.    • Exceptional… we are committed to creating exceptional customer service that delights  our visitors.   • Integrity … to be ethically unyielding and honest, inspiring trust by saying what we  mean, matching our behaviors to our words and taking responsibility for our actions.  • Innovation . . . we are highly creative and strive to connect new ideas with business  realities  • Empowerment . . . to empower our talented people to take the initiative and to do  what’s right.  • Cooperation … we foster partnerships to achieve better results.  City Council Meeting of December 20, 2010 (Item No. 8c) Subject: Second Reading - Ordinance Providing for a Local Lodging Tax Page 13 5      Brand Identity – “Experience St. Louis Park”  According to Wikipedia, a brand is the personality that identifies a product, service or company  (name, term, sign, symbol, or design, or combination of them) and how it relates to key  constituencies.  Some people distinguish the psychological aspect, brand associations like  thoughts, feelings, perceptions, images, experiences, beliefs, attitudes, and so on that become  linked to the brand, of a brand from the experiential aspect.    The experiential aspect consists of the sum of all points of contact with the brand and is known  as the brand experience. The psychological aspect, sometimes referred to as the brand image,  is a symbolic construct created within the minds of people and consists of all the information  and expectations associated with a product or service.    People engaged in branding seek to develop or align the expectations behind the brand  experience, creating the impression that a brand associated with a product or service has  certain qualities or characteristics that make it special or unique. A brand is therefore one of  the most valuable elements in an advertising theme, as it demonstrates what the brand owner  is able to offer in the marketplace. The art of creating and maintaining a brand is called brand  management. Orientation of the whole organization towards its brand is called brand  orientation.    In keeping with the mission of the City of St. Louis Park and borrowing from its brand equity, it  is the recommendation that the Bureau utilize the phrase “Experience St. Louis Park” in its  marketing efforts.  Two key elements to this phrase include the following:    • Experience – an actionable word that creates a feeling.  Webster’s’ Dictionary defines  “experience” as “direct observation of or participation in events as a basis of  knowledge” and/or “something personally encountered, undergone, or lived through.”  • St. Louis Park – the specific geographic area that is being marketed to travelers.    Therefore, in its simplest term, Experience St. Louis Park should be executed throughout all  marketing efforts including but limited to utilizing this as the domain address for the Bureau’s  primary marketing resource – its website.      City Council Meeting of December 20, 2010 (Item No. 8c) Subject: Second Reading - Ordinance Providing for a Local Lodging Tax Page 14 6      Implementation Timeline   In 2006, as part of Vision St. Louis Park the St. Louis Park City Council reviewed and discussed  the work of eight vision action teams which consisted of participants from throughout the  community. These groups worked for six months to develop goals, action steps, timelines, and  suggestions for additional partnerships.  The teams also developed a one‐page state on what St.  Louis Park would look like in 2016 should their dreams come true.      With the involvement of more than 750 residents, workers, businesspeople, organizations and  agencies, the initiative created a roadmap for the future of the City and fostered a strong  community spirit.      Conclusions for the visioning process included a commitment to connection and engaging our  community, being a leader in environmental stewardship, providing a well‐maintained and  diverse housing stock, and promoting and integrating arts, culture, and community aesthetics in  all City initiatives.    What this process taught us was that this community is proud of all we have to offer and it’s  time to share all of that with the rest of our region, state and nation.  A convention and visitors  bureau will allow us to accomplish that.  In addition, the time is right given recent development  in St. Louis Park.  Significant investments in the West End and neighboring hotel and medical  facilities have added to the community buzz and position St. Louis Park as an even stronger  destination for visitors and travelers.      The traveling public, area facilities, employers and community organizations are currently in  need of coordinated services that a convention and visitors bureau would provide, and the  sooner such an entity is organized and operating, the sooner they would benefit.      For several months city staff has been conducting research, meeting with key stakeholders, and  listening to area hospitality businesses regarding specific ideas and plans for a CVB.   Additionally, a community‐wide key stakeholder meeting was held to garner any additional  thoughts and insights to ensure that nothing was missed.        Based on all of the data and feedback, we believe that a convention and visitors bureau could  begin sales and operations efforts in early 2011.  Many of the administrative tasks will begin  prior to the end of 2010 including meeting all of the necessary legal requirements but with well‐ planned road map, the CVB will should be fully‐operational including a full complement of staff  by the end of 2011.  Specific details of the implementation timeline can be found in Exhibit B.      City Council Meeting of December 20, 2010 (Item No. 8c) Subject: Second Reading - Ordinance Providing for a Local Lodging Tax Page 15 7      Organization Development and Governance Recommendations   Convention and visitor bureaus are not‐for‐profit organizations (501(c)(6)) charged with  representing a specific destination and helping the long‐term development of communities  through a travel and tourism strategy.  For visitors, CVBs are like a key to the city.  As an  unbiased resource, Bureaus can serve as a broker or an official point of contact for convention  and meeting planners, tour operators and visitors.  They assist planners with meeting  preparation and encourage business travelers and visitors alike to visit local historic, cultural  and recreational sites.    Minn State. 469.190, Subd. 1 authorizes local government the ability to adopt an ordinance  imposing a tax of up to three percent (3%) of the gross receipts of lodging at a hotel, motel,  rooming house, tourist court or resort.      Ninety‐five percent of the gross proceeds from any lodging tax must be used to fund a local  convention or tourism bureau for the purpose of marketing and promoting the city as a tourist  or convention destination.  According to the opinion of the Minnesota Attorney General, the  tax proceeds collected are limited to expenditures for advertising or similar types of marketing  or promotion of the City as a tourist or convention center that enhances the attractiveness of  the community.      Through extensive research of convention and visitors bureaus, non‐profit organizations and  best practices, information was obtained to ensure the best potential outcome in the  development of the Bureau.  The following are the recommended summary (Exhibit C) to  becoming a non‐profit organization and formalizing the St. Louis Park Convention and Visitors  Bureau:    9 Step 1:  Finalize the strategic purpose and mission of the Bureau.  9 Step 2:  Adoption of Ordinance by St. Louis Park City Council and Review of Operating  Agreement (Exhibit D).   9 Step 3:  Recruit board members.    9 Step 4: Check for availability and reserve a name.  9 Step 5:  Filing of the Articles of Incorporation (Exhibit E).  9 Step 6: Review the Corporate Bylaws (Exhibit F).   9 Step 7:  Hold first meeting of the board (Exhibit G for Writing of Incorporators).  9 Step 8: Apply for Federal ID Number (EIN).  9 Step 9: Obtain income tax exempt status from the IRS.  9 Step 10: Receive tax identification number.  9 Step 11: Register as a charity. (Pending verification of necessity).  9 Step 12:  Annual Steps:  File annual registrations.  9 IRS Form 990 — Return of Organizations Exempt from Income Tax.  9 Nonprofit Corporation Annual Registration.  City Council Meeting of December 20, 2010 (Item No. 8c) Subject: Second Reading - Ordinance Providing for a Local Lodging Tax Page 16 8          Composition of the Board of Directors   According to the recommendations as outlined in the bylaws for the St. Louis Park Convention  and Visitors Bureau,  the Board of Directors shall be composed of not less than nine (9), nor  more than fifteen (15) directors appointed for a three (3) year term and shall be representative  of the following organizations and/or industries.  Additionally, based upon the initial research,  discussions and review of community leadership, the following individuals are recommended to  serve on the initial board of directors within their respective categories.  They include:     Category Name and Business Term  Ending  1 Hotel To Be Determined 2013  2 Hotel To Be Determined 2012  3 City of St. Louis  Park  To Be Determined 2011  4 City of St. Louis  Park  To Be Determined 2012  5 TwinWest  Chamber  To Be Determined 2012  6 Business  To Be Determined 2012  7 Business To Be Determined 2013  8 At Large To Be Determined 2011  9 At Large To Be Determined 2013  10 Optional  To Be Determined 2011  11 Optional To Be Determined 2012  12 Optional To Be Determined 2013  13 Optional To Be Determined 2011  14 Optional To Be Determined 2012  15 Optional  To Be Determined 2013    The intent is to provide flexibility in filling positions with key stakeholders that can provide  leadership and meet the primary objectives as outlined in the board of directors’ job  description.  At‐large positions are intended to provide leadership opportunities for individuals  and partners from various industries, including but not limited to St. Louis Park community  City Council Meeting of December 20, 2010 (Item No. 8c) Subject: Second Reading - Ordinance Providing for a Local Lodging Tax Page 17 9    organizations, area businesses, professionals within the legal, accounting and finance  industries, education, area attractions, and residents that have a vested interest in seeing the  tourism industry grow and prosper in St. Louis Park.       Consideration regarding diversity within the composition of the board should also be part of  any decision making.  Diversity within all categories including gender, locale of organization,  type of business or organization, expertise, cultural, ethnic, etc. should provide for a basis of  discussion to ensure a balanced representation for the Bureau’s success.        Organizational Committee Structure   Governed by the St. Louis Park Board of Directors and managed day‐to‐day by professional staff  the Bureau shall also utilize a base of core volunteers to provide oversight, guidance and  implement a variety of tasks to meet its’ mission.      Four committees are being recommended for inclusion within the organizational structure and  are listed below with definition and intent.      • Board of Directors – The St. Louis Park Convention and Visitors Bureau Board of Directors  shall set policy of the organization, provide governance, employ its President, and be the  fiduciary and steward or the organization.  A complete job description is available as Exhibit  H.    Regular board meetings must be held no less than four times per year.  During 2011, it is  recommended that the board of directors meet on a monthly basis with one of those  meetings being set aside to review current conditions and participate in strategic planning  for the coming year.      • Executive Committee ‐ The Executive Committee shall be composed of five (5) members  and include the Chair of the Board, Chair‐Elect, President, and Treasurer. The fifth (5th)  member of the Executive Committee shall be a Board member appointed by the Chair of  the Board.   The Chair of the Board shall serve as the Chair of the Executive Committee and  the Committee shall act for and on behalf of the Board of Directors when the Board is not in  session or otherwise unavailable.     Additionally the Executive Committee shall provide strategic guidance to the Bureau’s  president, provide annual performance review of its President, and satisfy other  responsibilities as outlined in the organizational bylaws.  The Bureau’s President shall be the  primary liaison to the Executive Committee.      City Council Meeting of December 20, 2010 (Item No. 8c) Subject: Second Reading - Ordinance Providing for a Local Lodging Tax Page 18 10    The Executive Committee shall meet once per month, or as necessary in response to  situation that requires immediate action.      • Finance Committee – The Finance Committee provides general expertise to the Bureau’s  management team, shall review the financial condition of the Bureau on a regular basis,  review and recommend the annual operating budget, and recommend fiduciary policies for  board consideration.  The Bureau’s President shall be the primary liaison to the Finance  Committee.      The Finance Committee shall meet no less than four times per year.      • Marketing Committee – Comprised of primarily sales and marketing experts representing  the various hotel properties and attractions.  The Marketing Committee shall meet on a  monthly basis to ensure the strategic objectives contained in the marketing plan are being  met.  The Bureau’s Director of Sales and Marketing shall be the primary liaison to the  Marketing Committee.      The Chair of the Board and President may from time to time appoint task forces when  appropriate to undertake special projects as requested by the Board.  The Chair of the Board  shall appoint task force chairs through the same process as committee chairs are appointed on  an annual basis.  Task forces shall make their reports and recommendations pursuant to the  direction of the Board.        Physical Office Space   The main purpose of a convention and visitors bureau in St. Louis Park is to promote the  community as a year‐round destination to pre‐identified market segments and to provide  exceptional customer service to the leisure and business travelers that visit the City.  A  convention and visitors bureau should provide thorough and efficient customer service with  outstanding collateral information in order to attract overnight stays, increase the length of  stays, and encourage return visits.      Initially, the St. Louis Park Convention and Visitors Bureau should seek temporary space for its  office location.  Perhaps space is available at City Hall or within a community‐based  organization that is willing to contribute space and resources during the start‐up phase.      Ideally, a physical office location would include a storefront presence (Visitors Center) in a  highly visible location within the community.  Reasons for selecting a highly visible location  include visitor convenience, exceptional customer service delivery, and establishing  organizational credibility.  Specific geographic locations may include space within the West End  area or near Excelsior and Grand.    City Council Meeting of December 20, 2010 (Item No. 8c) Subject: Second Reading - Ordinance Providing for a Local Lodging Tax Page 19 11      Occupancy costs must be a consideration in the final selection of office space.  Perhaps during  the first few years, the Bureau may select an office location that is not visible but provides an  efficient and effective means of marketing the community.  This space may or may not be  within the geographic locations mentioned above and would likely not be on the ground floor.        Administrative Tasks   Outside of the required legal filings and necessary corporate paperwork that must be  completed, there are hundreds of details to consider when forming a new entity.  This business  plan focuses on major areas related to governance and structure, staffing, marketing,  communications, etc.  However, many of the secondary, but still necessary administrative tasks  must be completed.  These items may be handled by interim staff or through a contract  relationship.      The following are some thoughts related to these administrative tasks:    • Establish interim financing options in order to expedite start‐up tasks and hiring of  Bureau’s president  • Identify legal counsel that has a strong non‐profit management acumen  • Purchase domain name and its alternatives through www.godaddy.com  or other vendor  • Identify and establish a local banking relationship  • Identify a certificated professional accountant to provide general support and  review/audit requirements.  Strong non‐profit expertise is essential  • Identify an insurance agent through an RFP process for General Liability, Directors and  Officer’s Insurance, and Workers’ Compensation Insurance  • Research and initiate procurement of all start‐up items listed on the FFE Listing  contained in Exhibit I  • Identify community commercial realtor to assist in office vacancy inventory  • Facilitate an RFP process for a technology vendor that includes procurement of  software, hardware and ongoing maintenance and support  • Identify telephone, internet and cable provider including installation and ongoing  service through an RFP process.  Obtain 800 telephone number  • Develop an Accounting Policies and Procedures Manual including the establishment of a  chart of accounts, financial software, etc.    • Identify a payroll service to assist with employee payroll, tax payments, filings, etc.   Utilize an RFP process for vendor selection  • Research potential employee benefits packages and providers.  Utilize an RFP process  for vendor selection  • Develop an Employee Handbook for Policies and Procedures  City Council Meeting of December 20, 2010 (Item No. 8c) Subject: Second Reading - Ordinance Providing for a Local Lodging Tax Page 20 12    • Purchase adequate office supplies  • Reestablish relationship with Explore Minnesota Tourism and its connectedness  • Reestablish relationship with STR Global for hotel reports (STAR Report) and industry  information  • Create Facebook, LinkedIn, and Twitter accounts   • Identify organizational marketing/communications professional to assist in areas as  outlined in the communications and media strategies area of this business plan  • Develop initial media relations strategy regarding initial launch of Bureau   • Develop presentation that can be utilized during community meetings  • Research and develop relationship with Jack Rabbit, a direct on‐line booking software  vendor – www.jackrabbitsystems.com  • Establish interim account with Constant Contact to ensure immediate communications  to key stakeholder groups – www.constantcontact.com  • Research various customer relationship management software programs designed for  CVB’s.  Vendor example would include www.simpleviewinc.com      Staffing and Leadership   As with many non‐profit associations, Convention and Visitors Bureaus have primarily been lead  by professional individuals with expertise in organizational development, business management  and marketing and sales.  Today, staffing options for Convention and Visitors Bureaus range  from a full, direct staff, to retaining an association management organization that provides  select services, to development of a virtual organization, whereby no physical staff or location  has any presence within the community.      Based upon the research, best practices, community feedback, and primary goals and  objectives of the Bureau, the ideal organizational structure includes a full complement of  professional staff along with volunteer leadership and community support.  Specific positions  should be created to carry out the mission of the organization including an outline of  responsibilities and qualifications.  The composition of staff positions are based on the  objectives of the organization and the annual revenue forecasts.  They include:    • President/CEO  • Director of Sales and Marketing (see Exhibit J for job posting and description)   • Administrative Assistant  • Interns ‐ unpaid    The President should be the first individual that is hired by a Search Committee comprised of  members of the Board of Directors.  The Bureau should be led by a full‐time paid professional  with previous experience in association management and/or the tourism industry.  The  President/CEO of the St. Louis Park Convention and Visitors Bureau is responsible for the  City Council Meeting of December 20, 2010 (Item No. 8c) Subject: Second Reading - Ordinance Providing for a Local Lodging Tax Page 21 13    general direction, management, and policy oversight of the CVB and all of its human and capital  resources.  This includes responsibility for an annual budget of approximately $500,000 and its  employees and contractors.  The recommended Selection Process and Timeline is available  through Exhibit K, however a summary process follows:      1. Determine and Appoint a Selection Committee   2. Committee Seeks Candidates   3. Committee Selects Candidates   4. Bureau Contacts Candidates and Obtains Information   5. Selection Committee Considers Leadership Attributes and Resumes (Exhibit L)   6. Selection Committee Interviews Candidates   7. Selection Committee Checks References   8. Selection Committee Identifies Final Candidates   9. Evaluate Candidates   10. Board Selects the New President   11. Selection Committee Notifies Candidates     The President/CEO is also expected to maintain strong relationships with and provide guidance  to St. Louis Park elected officials and members of the CVB Board of Directors, as well as serve as  the spokesperson and leader for the CVB and all tourism‐related and other relevant matters to  the customers and visitors of St. Louis Park, the business community, citizens, and the local and  global media.  A full job announcement including specific job responsibilities for the President is  outlined in Exhibit  M.      To be competitive in attracting talented individuals, the Bureau should consider offering  compensation that is commensurate with experience and within industry standards.   Additionally, benefits should also be offered.  Specific details regarding staff compensation and  benefits is outlined in the Bureau’s annual operating budget and proposed employee benefits  are described in Exhibit N.      The following is a summary listing of the recommended benefits:    • Annual performance incentives  • Twelve days of paid personal time off (PTO) in the first year   • Seven paid holidays per year in addition to PTO  • Company contribution to employee 401K retirement savings account  • Medical insurance (flexible spending allocation)  • Dental insurance (flexible spending allocation)  • Life Insurance   • Long‐term disability insurance   • Short‐term disability insurance   • Flexible spending plan   • Tuition reimbursement  City Council Meeting of December 20, 2010 (Item No. 8c) Subject: Second Reading - Ordinance Providing for a Local Lodging Tax Page 22 14      Assessment and Inventory of Key Stakeholders and Critical Partnerships   Key stakeholders are individuals or groups with an interest in the Bureau’s success in delivering  intended results.  Stakeholders influence programs, products, and services.  With the St. Louis  Park Convention and Visitors Bureau being a destination marketing organization or “community  marketer” , it has the ability to provide leadership to multiple issues and can bring great  influence impacting the economic vitality of St. Louis Park.    The Bureau’s marketing plan encompasses several different strategies including a large focus on  partnership marketing.  Developing respectful and beneficial relationships will be key to the  success of the Bureau.  Initially it will be important for Bureau leadership to ascertain the  importance of balancing these relationships and how to best utilize its assets.  The following is a  listing of key community stakeholders and potential partnerships that Bureau leadership should  consider as part of its strategic planning:      • City of St. Louis Park  o City Staff  o Elected Officials  o Park and Recreation Department  • Hotel Representatives  o DoubleTree  o Minneapolis Marriott West  o Spring Hill Suites  o Homewood Suites  o TownePlace Suites  o Lakeland Inn  • TwinWest Chamber of Commerce  o Business Community  • HealthCare Representatives  o Park Nicollet Clinic  o Methodist Hospital  o Frauenshuh Cancer Center  o Melrose Institute  o The Emily Program  o Davita Kidney Dialysis Center  o St. Louis Park Dialysis  o Lifescan Upright, MRI  • St. Louis Park School District  • Retail Representatives – Shopping and Dining  o The West End   o Excelsior Boulevard   City Council Meeting of December 20, 2010 (Item No. 8c) Subject: Second Reading - Ordinance Providing for a Local Lodging Tax Page 23 15    o Excelsior and Grand   o Knollwood Mall   • Tourism Related Businesses  o Metropolitan  o AAA  • Community Organizations and Representatives  o Jewish Community Center and/or Historical Society  o The Rec Center  o Festivals and Community Events  o Parktacular  o Public Art  o St. Louis Park Rotary  o Youth Sports Associations   • St. Louis Park Residents  • St. Louis Park Visitors and Convention Bureau Customers  o Leisure Travelers  o Corporate and Convention Travelers  o Group Tour Leaders  o Meeting Planners  • St. Louis Park Convention and Visitors Bureau Volunteers  • St. Louis Park Convention and Visitors Bureau Staff  • Tourism Industry Peers  o Meet Minneapolis  o Visit Minneapolis North  o Twin Cities Gateway  o Metro Area Tourism Bureaus  o Metro Area Chambers of Commerce  • Industry Associations  o Explore Minnesota  o Destination Marketing Association International (DMAI)  o Tour Minnesota Association (TMA)  o National Tour Association (NTA)  o American Bus Association (ABA)  o American Society of Association Executives (ASAE)  o American Hotel & Lodging Association  o American Society of Association Executives  o Association of Fundraising Professionals  o Convention Industry Council  o American Society for Training & Development  o Meeting Professionals International (MPI)  o Meeting Professionals International – Minnesota  o Professional Convention Management Association  City Council Meeting of December 20, 2010 (Item No. 8c) Subject: Second Reading - Ordinance Providing for a Local Lodging Tax Page 24 16    o Society of Corporate Meeting Professionals  o Society of Incentive Travel Executives  o Minnesota Association of Convention & Visitors Bureaus (MACVB)  o Midwest Society of Association Executives (MSAE)  o Twin Cities Tourism Attractions Association (TCTAA)   o Other  • Twin Cities Metro Area Attractions (see comprehensive listing in Exhibit A)  • Other      Evaluation Metrics   Accountability has truly become an integral part of any organizational culture.  This is certainly  the case among Convention and Visitors Bureaus, where stakeholders ‐‐ whether they are a  Board of Directors, government entities, members, or corporate partners, are increasingly  asking CVBs to show that they are effectively using their resources to generate the greatest  possible return on investment to the local community – the ultimate stakeholder.     In the past, CVBs often found themselves challenged to respond, lacking the tools to do so in a  credible and auditable fashion that is consistent among all CVBs. As a result, CVBs’  achievements were underreported and misunderstood, a circumstance potentially damaging to  the relationship between the CVB and its stakeholders.    These assessments are necessary to guide the decision‐making process for resource  management and allocation, sales and marketing campaign development, as well as staff  training and development.   Performance reporting will also give CVBs benchmarks and a platform by which they can  compare against industry peers and clearly articulate their contribution to their stakeholders  and the local community.    Several years ago, Destination Marketing Association International defined a number of tourism  industry‐related terms and metrics, which have since been adopted by countless industry  associations and bureaus.   A list of common terms used through the tourism industry can be  found as Exhibit W.  (Sources for these definitions include Destination Marketing Association  International, National Tour Association, Travel Industry Association, American Association of  Advertising Agencies) Institute for Public Relations, Interactive Advertising Bureau, and  Jupitermedia.)     The following are potential metrics for consideration by the St. Louis Park Convention and  Visitors Bureau as recommend by DMAI.  Additional metrics should be used based upon final  strategies contained in the marketing plan.      City Council Meeting of December 20, 2010 (Item No. 8c) Subject: Second Reading - Ordinance Providing for a Local Lodging Tax Page 25 17    Leisure Travel Activity Measures    Advertising/Promotions  1.  Number of programs   2.  Total reach   3.  Total frequency   4.  Gross impressions   5.  Total value of media placed   a.  Paid media dollars   b.  Co‐op media dollars   c.  In‐kind/Barter media dollars   d.  Unpaid media dollars   6.  Number of co‐op partners   Online Activity   1.  Number of “play‐per‐click” keywords purchased per search engine   2.  Number of web pages of content developed     Media/Public Relations   1.  Media tradeshows   a.  Number of media tradeshows attended   b.  Number of appointments   2. Media missions   a.  Number of media missions   b.  Number of co‐op partners   c.  Number of media contacts   3. Number of media/PR calls   4.  Media familiarization tours   a.  Number of familiarization tours   b.  Number of journalists/media participating   c.  Number of publications represented   5.  Press releases   a.  Number of press releases issued   b.  Number distributed (incl. downloaded off CVB website) per press release   6.  Number of media inquiries   7.  Number of media interviews   8.  Number of newsletters (incl. e‐newsletters) produced   9.  Number of public service announcements (PSA) produced   10.  Number of accounts with activity     Event Marketing   1.  Number of events supported   2.  Number of events produced   City Council Meeting of December 20, 2010 (Item No. 8c) Subject: Second Reading - Ordinance Providing for a Local Lodging Tax Page 26 18        Leisure Travel Performance Measures    Inquiries/Fulfillment   1.  Number of brochure requests   2.  Number of consumer calls handled   3.  Number of coupons redeemed   4.  Number of people who register on the CVB’s website to receive newsletter, etc. (‘opt‐ins’)     Interactive/Online/CVB Website   1.  Number of user sessions   2.  Number of unique users   3.  Number of repeat visits   4.  Click‐throughs to the CVB website   5.  Number of specific webpage view counts   6.  Number of click‐throughs to member/sponsor websites from CVB website ads and/or links   7.  Number of web coupons redeemed   8.  Average length of session   9.  Search engine referrals   a. Total number of referrals   b. Top referring search engines   c. Percent of website traffic attributable to search engine referrals   10.  Search engine results’ placement of website (number of first place rankings, top five, top  ten)     Media/Public Relations   1.  Placements   a. Total number of placements   b. Domestic vs. international placements   c. Broadcast vs. print placements   2.  Number of impressions (circulation)   3.  Advertising equivalency ($)     Bookings   1.  Online/1‐800 hotel reservations   a. Number of room nights booked   b. Room booked revenue   c. Rooms sold commission   d. Average length of stay   2.  Online ticket sales (e.g., attractions, tours, etc.)  a. Total tickets sold   b. Tickets sold revenue   City Council Meeting of December 20, 2010 (Item No. 8c) Subject: Second Reading - Ordinance Providing for a Local Lodging Tax Page 27 19    c. Tickets sold commission   3.  Packages   a. Total packages sold   b. Packages sold revenue   c. Packages sold commission   d. Number of room nights booked     Meeting and Convention Sales Activity Measures    1.   Number of bids   2.   Tradeshows attended/exhibited   a.  Number of tradeshows   b.  Number of co‐op partners participating   c.  Co‐op monies generates   3.   Sales missions (with industry partners)   a.  Number of sales missions   b.  Number of co‐op partners participating   c.  Co‐op monies generated   4.   Familiarization tours   a.  Number of familiarization tours   b. Number of participants (event organizers only)   c.  Number of accounts   d.  Number of co‐op partners participating   e.  Co‐op monies generated   5.    Number of sales calls   6.    Number of client site inspections   7.   Client events   a.  Number of client events   b.  Number of participants (event organizers only)   c.  Number of accounts   d.  Number of co‐op partners participating   e.  Co‐op monies generated   8.   Sponsorships   a.  Number of client events   b.  Tradeshow elements/sessions   c.  Monies spent   d.  Number of people at sponsored events (‘customer‐exposed impressions’)   9.   Number of accounts with activity     Meeting and Convention Sales Performance Measures    1.   Leads   a.    Number of leads    City Council Meeting of December 20, 2010 (Item No. 8c) Subject: Second Reading - Ordinance Providing for a Local Lodging Tax Page 28 20    b.  Lead room nights (estimate)   2.   Bookings   a.  Hotel events   • Number of bookings   • Booked room nights (estimate)   • Booked attendance (estimate)   • Booked attendee spending (estimate)   b.  Citywide/Convention Center events   i. Number of confirmed bookings   • Booked room nights (estimate)   • Booked attendance (estimate)   • Booked attendee spending (estimate)   ii. Number of contracted bookings   • Booked room nights (estimate)   • Booked attendance (estimate)   • Booked attendee spending (estimate)   3.  Lost opportunities   a. Number of lost opportunities   b. Reason for lost opportunity   c. Lost room nights (estimate)   d. Lost attendance (estimate)   e. Lost attendee spending (estimate)   4.  Cancellations   a. Number of cancellations   b. Reason for cancellation   c. Cancelled room nights (estimate)   d. Cancelled attendance (estimate)   e. Cancelled attendee spending (estimate)     Group Tour Activity Measures    1.  Tradeshows attended/exhibited   a.  Number of tradeshows   b.  Number of co‐op partners participating   c.  Co‐op monies generated   2. Number of accounts with activity   3.  Familiarization tours   a.  Number of familiarization tours   b.  Number of participants (travel trade only)   c.  Number of accounts   d.  Number of co‐op partners participating   e.  Co‐op monies generated   City Council Meeting of December 20, 2010 (Item No. 8c) Subject: Second Reading - Ordinance Providing for a Local Lodging Tax Page 29 21    4.  Sales missions (with industry partners)   a.  Number of sales missions   b.  Number of co‐op partners participating   c.  Co‐op monies generated   5.  Number of sales calls   6.  Client events   a.  Number of client events   b.  Number of participants (travel trade only)   c.  Number of accounts   d.  Number of co‐op partners participating   e.  Co‐op monies generated   7.  Number of client site inspections   8.  Number of developed suggested itineraries   9.  Number of packages developed   10.  Sponsorships   a.  Number of client events   b.  Tradeshow elements/sessions   c.  Monies spent   d.  Number of people at sponsored events (‘customer‐exposed impressions’)     Group Tour Performance Measures    1. Leads (including confidential/internal leads)   a. Number of hotel leads   • Lead room nights (estimate)   • Number of visitors (estimate)   • Visitor spending (estimate)  b. Number of non‐hotel leads   • Number of non‐hotel leads by member category   • Number of visitors (estimate)   • Visitor spending (estimate)  2. Bookings (including confidential bookings)   a. Number of bookings from hotel leads   • Booked room nights (estimate)   • Booked visitors (estimated)   • Booked visitor spending (estimate)  b. Number of bookings from non‐hotel leads   • Booked visitors (estimated)   • Booked visitor spending (estimate)      Financial Recommendations City Council Meeting of December 20, 2010 (Item No. 8c) Subject: Second Reading - Ordinance Providing for a Local Lodging Tax Page 30 22      Lodging Tax and Revenue Opportunities  Minn State. 469.190, Subd. 1 authorizes local government the ability to adopt an ordinance  imposing a tax of up to three percent (3%) of the gross receipts of lodging at a hotel, motel,  rooming house, tourist court or resort.      Ninety‐five percent of the gross proceeds from any lodging tax must be used to fund a local  convention or tourism bureau for the purpose of marketing and promoting the city as a tourist  or convention destination.  According to the opinion of the Minnesota Attorney General, the  tax proceeds collected are limited to expenditures for advertising or similar types of marketing  or promotion of the City as a tourist or convention center that enhances the attractiveness of  the community.      It is the recommendation to enact the City Ordinance which imposes a lodging tax of three  percent (3%).   The majority of the Bureau’s revenue will be tax proceeds collected with minor  revenue streams of investment income, advertising sales, grants, and education programming.      In some communities, the convention and visitors bureau also offers a membership program to  enhance its revenue.  Because bureau funding is directly linked to how many hotel rooms there  are in a community, budget sizes can vary greatly.  To remain a valued partner with St. Louis  Park‐based community and business organizations, we do not recommend the establishment of  a membership program.      Start‐Up Expenditures  It is anticipated that approximately $80,000 will be necessary for expenditures related to start‐ up including the procurement of all furniture, fixtures, equipment, and marketing costs  including the development of a website.  Exhibit O provides a detailed listing.       Budget Development  A budget depicts what you expect to spend (expenses) and earn (revenue) over a time period.  For example, they are useful in projecting how much money you'll need for a major initiative or  for hiring a new employee.  They also help track whether you're on plan or not.  There are  yearly (or annual or operating) budgets, cash budgets, capital budgets (for major assets, such as  equipment, buildings, etc.) and proposal budgets (for fundraising), etc.   In each and every case,  it is recommended that philosophically revenue is underestimated; expenses are  overestimated.       In the development of the 2011 annual operating budget a series of assumptions was used.   Based on data contained in the STAR Report, STR Global and utilizing extremely conservative  estimates, total annual revenue could range from $457,000 to $614,000 based on current  properties and room inventory.  Total revenue of approximately $553,000 was used for the  development of the budget in 2011.  Additionally it should be noted that all expenditures were  budgeted for a 12‐month period; however we anticipate that many expenditures will occur only  City Council Meeting of December 20, 2010 (Item No. 8c) Subject: Second Reading - Ordinance Providing for a Local Lodging Tax Page 31 23    during the later part of 2011.  This savings can help offset start‐up fees as well as begin to build  a cash reserve.      The proposed 2011 annual operating budget is contained in Exhibit P.     Cash Flow Management  "Cash flow" management refers to the need to have cash come in ‐‐ flow in ‐‐ at the right times,  so that it is available to flow out as needed.  Everyone knows that if an organization has more  expenses than income, sooner or later it will find itself in trouble.  However, even if income  matches or exceeds expenses in a given year, the cash from the income may not arrive in time  to pay the bills as they come due.  A cash shortage can be very disruptive to your ability to carry  out your mission. To avoid disruptions of business or to take advantage of temporary cash  surpluses, cash flow can and should be projected, monitored, and controlled.    Cash‐basis vs. Accrual basis  Cash‐basis and accrual‐basis accounting use different criteria for determining when to  recognize and record revenue and expenses in your financial records.  On a cash‐basis revenues  are recognized when cash is received and deposited.  Expenses are recorded in the accounting  period when bills are paid.  In accrual‐basis accounting, income is realized in the accounting  period in which it is earned (e.g., once contracted services are provided, grant provisions are  met, etc.), regardless of when the cash from these fees and donations is received.  Expenses are  recorded as they are owed (e.g. when supplies are ordered, the printer finishes the brochure,  employees actually perform the work, etc.), instead of when they are paid.  Based on the  economic uncertainty, it is recommended that a cash basis methodology be utilized in the  development of the annual operating budget and financial recordkeeping.  A final decision  should be deferred to your independent auditor.     Financial Statements  The Financial Accounting Standards Board issued Statement of Account Standards No.117,  Financial Statements for Not‐for‐profit Organizations requiring nonprofits to prepare three  primary financial statements:    • Statement of Financial Position (Balance Sheets)  • Statement of Activities (Income Statement)   • Statement of Cash Flows     In addition, nonprofits must provide information about expenses as reported in their functional  classifications (program services and supporting services.)      These statements should be provided to the Finance Committee for review and  recommendation as well as to the Board of Directors each month.      Organizational Audit   City Council Meeting of December 20, 2010 (Item No. 8c) Subject: Second Reading - Ordinance Providing for a Local Lodging Tax Page 32 24    An audit is a process for testing the accuracy and completeness of information presented in an  organization's financial statements. This testing process enables an independent certified public  accountant (CPA) to issue what is referred to as an opinion on how fairly the agency's financial  statements represent its financial position and whether they comply with generally accepted  accounting principles (GAAP).     Some nonprofits are legally required to obtain audits. Many states require an audit for  nonprofits which receive contributions over a specified amount (the amount varies from state  to state) and/or nonprofits who hire a paid fundraiser.  Nonprofits which receive $25,000 or  more in direct or pass‐through federal funding during a single fiscal year are usually required to  have an audit.    You may choose to obtain an audit even if you are not legally required to do so.  However,  many funders commonly request audited financial statements.  In addition to these external  requirements, the board may seek reassurance that the financial information they are  considering as part of their oversight function is accurate and complete.  In cases where  financial problems or irregularities in the financial system have occurred, the board and the  general public may look to an audit to provide assurance that these problems have been  resolved.  Also, the audit process can be valuable to your staff since it confirms the financial  picture and helps you strengthen internal control procedures.    A complete audit through an independent certificated public accountant is high recommended.      Unrelated Business Income Tax  All 501(c) organizations, with the exception of federal agencies, are subject to a tax on  unrelated business income.  Unrelated business income is income generated by a trade or  business activity not substantially related to the exempt purpose of the organization and  regularly carried by that organization.    A trade or business activity is an activity conducted for the purpose of generating income from  the sale of merchandise or performing a service.  Taxes paid by a nonprofit on unrelated  business income are paid at corporate rates.  Without such a tax, nonprofits would be at a  substantial advantage in the marketplace when competing with for‐profit organizations.  It  should be noted that if unrelated business gross income (income before related expenses have  been subtracted) is less than $1,000, it is not necessary to file an unrelated business tax return  (Federal Form 990T).      Communications and Media Relations Suggestions   As the primary driver to strengthen awareness of St. Louis Park as a destination for as a  convention and visitor destination and to stimulate economic development and growth for the  community, a dynamic and powerful website is critical to its success.   As part of its brand, the  City Council Meeting of December 20, 2010 (Item No. 8c) Subject: Second Reading - Ordinance Providing for a Local Lodging Tax Page 33 25    domain name of www.experiencestlouispark.com is being recommended.  Alternative formats  including spelling out “st” as “saint” and obtaining the suffixes of “net” , “org”, and “mobi”  should also be considered.    Initially, the St. Louis Park Convention and Visitors Bureau should identify a professional  company or companies that specialize in logo and brand development and web development.    They should retain these individuals/companies to design and produce professional  communications for the Bureau including logo development, website development, stationary,  business cards, signage, etc. that support the brand of the Bureau.       Full exploration in the development of a website is essential and one of the most important  steps that the Bureau can do during the formation of its organization.  Based on research and  best practices of similar‐sized convention and visitors bureaus, the following preliminary  sitemap is being recommended for www.experiencestlouispark.com    Home  • Hotel Reservations – direct on‐line access powered through Jack Rabbit or similar  vendor relationship  • Features   • St. Louis Park Attributes and Amenities    Primary Navigation  • Accommodations – description, amenities and hot links of the six hotel properties   • Explore – sub‐categories listing with paid links contained on following pages   • Events – interactive community calendar  • Shopping & Dining – local and immediate area options with optional paid links  • Group Tours – services available, brief description, incentive packages, and electronic  questionnaire  • Meeting Planners – services available, facilities, brief description, incentive packages,  and electronic questionnaire  • Sports – amateur and professional sports connections, descriptions, and electronic  questionnaire  • Caregivers – description of medical community in St. Louis Park with hot links  • Maps & Guides – community and metro area maps, directions, transportation resources    Secondary  • Customer Connection  • Weather  • City Information – brief summary of St. Louis Park with hot link to www.stlouispark.org  • News  ‐ media releases, trends, industry information  • About Us – history, board of directors, staff  • Contact Us – electronic questionnaire  City Council Meeting of December 20, 2010 (Item No. 8c) Subject: Second Reading - Ordinance Providing for a Local Lodging Tax Page 34 26    • Keyword/Advanced Search   • Photo Gallery  • Deals and Packages  • Downloadable Collateral Materials – audio/visual  • Partnership Links  • Social Media Connections  • Site Map  • Privacy     The anticipated cost and timeline to produce a website for the Bureau are approximately  $18,000 to $25,000 and three months of preparation, planning and testing prior to launch with  a primary representative working with the selected vendor.   Strategic plans surrounding social  media should also be part of any brand management and marketing strategy.      Additional marketing and public relations strategies can be found in the Bureau’s Marketing  Plan.        Finally the development of an initial media relations strategy regarding initial launch of Bureau  should be considered to ensure community support and a positive start to being “open for  business”.          Marketing Strategies and Services   The creation of a convention and visitors bureau would allow St. Louis Park to realize its market  potential for attracting travelers, meetings and events.  Charged with marketing St. Louis Park  as a destination on a local, regional and national level creates a greater awareness of all the  amenities and offerings available in the marketplace.  In cooperation and consultation with its  community partners, the Bureau broad‐based services could influence the following:    • promoting St. Louis Park as a destination for the leisure traveler;   • develop St. Louis Park as a meetings and convention destination;  • stimulate economic growth in the community in collaboration with the EDA;   • market all the amenities the community offers; and   • provide exceptional customer service    Leisure Travel  Studies show that in the leisure travel market, consumers are planning shorter, regional  vacations to drive markets, which bodes well for St. Louis Park.  Ensuring that St. Louis Park is  thought of as a great destination” will require innovative marketing such as direct advertising  and promotions which will dovetail on the recent success and media coverage on the Shops at  West End and Excelsior and Grand.  Consideration should also be given to leveraging  City Council Meeting of December 20, 2010 (Item No. 8c) Subject: Second Reading - Ordinance Providing for a Local Lodging Tax Page 35 27    partnerships to boost regional marketing efforts with travel packaging.  Whether it’s an  individual, a family or a group tour, St. Louis Park is a destination for all to experience.      Meetings and Conventions  St. Louis Pak has many facilities within the community that can service meeting and small  convention markets.  This untapped opportunity provides great dividends to hospitality related  area businesses.  Primary target market segments include state, regional and local business  associations, medical, sports and recreation groups, and religious and multi‐cultural  organizations.      St. Louis Park, with its close proximity to the Minneapolis Convention Center, could also be  promoted as an auxiliary location for larger national and international conventions.      Economic Growth  A convention and visitors bureau could work with the community’s Economic Development  Authority (EDA) to promote economic growth in the community.  With the EDA fostering the  development, redevelopment and revitalization of the business centers in St. Louis Park, while  working to retain its base of existing businesses, the convention and visitors bureau could also  augment efforts to recruit businesses that are complimentary to the community.     Marketing and Communications  An effective convention and visitors bureau requires a strong marketing and communications  plan.  The convention and visitors bureau would maximize its advertising dollars by actively  pursuing national, regional and local media coverage through press releases, media and  familiarization tours, and develop a strong interactive web and social media presence, as well  as traditional print and broadcast media.      Customer Service  A St. Louis Park Convention and Visitors Bureau would ensure that travelers enjoy St. Louis Park  to the fullest extent possible to stimulate return visits.  It would focus on development  relationships with local, regional and national meeting planners, including sports and recreation  markets, in addition to servicing the individual tourist.  As customer expectations require  sophisticated services to maintain a competitive advantage in the marketplace, a convention  and visitors bureau would need to deliver exceptional levels of personal assistance to all who  utilize their services.  The Bureau could also lead efforts in customer service focused training  and education for employees as well as develop an effective “secret shopper” program in order  to improve service throughout tourism‐related businesses.      Key strategies have been developed for inclusion in a comprehensive marketing plan (Exhibit  Q).  These strategies include:      • Develop a marketing program that encompasses measurable results and meets the  strategic objectives of the Convention and Visitors Bureau.    City Council Meeting of December 20, 2010 (Item No. 8c) Subject: Second Reading - Ordinance Providing for a Local Lodging Tax Page 36 28    • Develop a powerful website which will be used as the primary information portal and  marketing resource.      • Initiate efforts toward creating an experience in St. Louis Park for all travelers including  a promise of exceptional customer service.  • Communicate the importance of the tourism industry and its economic impact on the  community.      General Conclusions Why a St. Louis Park Convention and Visitors Bureau?   • St. Louis Park has unrealized potential for increasing its annual number of business and  leisure travelers;  • St. Louis park has a sufficient number of hotel rooms, meeting spaces, community  amenities, and attractions to accommodate such travelers;  • St. Louis Park could benefit greatly from community marketing efforts and the  coordinated services that a convention and visitors bureau could provide;  • St. Louis Park has the ability to generate sufficient revenue to support an effective  marketing initiative;  • St. Louis Park is a destination that should be marketed for all it has to offer.    The creation of a convention and visitors bureau allows St. Louis Park to realize its market  potential for attracting leisure travelers, meetings and events.  The Convention and Visitors  Bureau would be charged with marketing St. Louis Park as a local, regional, national, and  international destination conveniently located within the Twin Cities metropolitan area and to  provide coordinated customer service to business and leisure travelers, area facilities,  employers and community organizations.    Now is the time to strengthen the awareness of St. Louis Park as a convention and visitor  destination to stimulate economic development and growth for the community.    Experience St. Louis Park!    City Council Meeting of December 20, 2010 (Item No. 8c) Subject: Second Reading - Ordinance Providing for a Local Lodging Tax Page 37   1    Experience St. Louis Park  2011 Sales and Marketing Plan ‐ DRAFT    Mission Statement – Draft  Strengthen the awareness of St. Louis Park as a convention and visitor destination to stimulate  economic development and growth for the community.      Situational Overview  Despite the economic challenges to consumers and businesses from around the globe, tourism remains  a vital component to the overall economy.  Leisure travel remains a high priority for the consumer and  businesses must continue to “do business”.  With that in mind, the St. Louis Park is poised to  successfully begin a strategic, coordinated marketing effort through the establishment of a Convention  and Visitors Bureau.      Following extensive research, a discovery phrase with key community stakeholders, and community  forums, the St. Louis Park City Council will consider implementation of an ordinance imposing a tax of up  to three percent (3%) of the gross receipts of lodging at a hotel, motel, rooming house, tourist court or  resort (Minn. Stat. 469.190, Subd1) in the Fall of 2010.  Based on final organizational efforts, the St.  Louis Park Convention and Visitors Bureau will be open for business in Winter 2011.      Just the Facts ‐ 2008  ANNUAL ECONOMIC IMPACT  Travel/tourism in Minnesota generates:  • $11.2 billion in leisure & hospitality gross sales  • $695 million in state sales tax (revised April 2010)  CONTRIBUTING TO THE ECONOMY  • Travelers in Minnesota spend more than $33 million a day.  • Travel/tourism impacts virtually every industry and area in Minnesota, from accounting and  manufacturing to tour operators and zoos.  • The leisure and hospitality industry accounts for 16% of Minnesota’s state sales tax.  • Tourism is comparable to agriculture in its contributions to the gross state product.  GROWTH IN THE TOURISM INDUSTRY  • Sales at leisure and hospitality businesses grew 38% from 2000 to 2008  RETURN ON INVESTMENT  • Every $1 invested in state tourism marketing returns an estimated:  • $53 in gross sales  • $20.40 in wages  • $4.60 in state and local taxes  TRAVELER SPENDING BY SECTOR  Spending during Minnesota’s 39 million annual person‐visits is distributed throughout the economy:  • Shopping 25%  • Recreation 25%  • Food 24%  City Council Meeting of December 20, 2010 (Item No. 8c) Subject: Second Reading - Ordinance Providing for a Local Lodging Tax Page 38   2    • Lodging 14%  • Transportation 12%  TRAVELER EXPENDITURES BY SEASON  • 24% ‐ Winter (Dec‐Mar)  • 25% ‐ Fall (Sept‐Nov)  • 14% ‐ Spring (Apr‐May)  • 37% ‐ Summer (Jun‐Aug)   TOURISM EMPLOYMENT  Tourism means jobs in communities across Minnesota. The leisure and hospitality industry accounts for:  • 245,788 full‐ and part‐time jobs  • $4.0 billion in wages  • 10.7% of the state’s total private sector employment  GROWTH IN LEISURE & HOSPITALITY JOBS  • Gross sales for Hennepin County in 2008 were $3,704,919,576  • State sales for the same period in Hennepin County totaled @233,764,102  • Hennepin County boosted 74,193 jobs in the leisure and hospitality industry during 2008     Sources: Explore Minnesota Tourism, spring/summer 2000; The Economic Impact of Expenditures by Travelers on Minnesota,  June 2007‐May 2008, Davidson‐Peterson Associates; Minnesota Department of Revenue, 2008; Minnesota Department  of Employment and Economic Development, 2008; Bureau of Labor Statistics      Why St. Louis Park?  • St. Louis Park has unrealized potential for increasing its annual number of business and leisure  travelers  • St. Louis park has a sufficient number of hotel rooms, meeting spaces, and community amenities  to accommodate such travelers;  • St. Louis Park could benefit greatly from community marketing efforts and the coordinated  services that a convention and visitors bureau could provide;  • Appropriate levels of financial support would be likely for a convention and visitors bureau in St.  Louis Park.  • St. Louis Park is a destination that should be marketed for all it has to offer.    Location – Location ‐ Location  St. Louis Park offers a central location within the first inner ring of the Twin Cities that is convenient and  safe.  Located immediately west of Minneapolis, the city is less than five miles from downtown and only  15 minutes from the Minneapolis/St. Paul International Airport.  From St. Louis Park, commuters enjoy  direct access to I‐394, US169, SH7, SH100 as well as close proximity to I‐494 and SH62.      Given its ease of access, meeting and event planners are increasingly aware of St. Louis Park as a  desirable hub for functions and overnight stays.  Within the next few years, getting to and from St. Louis  Park will be even easier when the Southwest Light Rail Transit (SWLRT) is completed with three stations  providing direct access to downtown Minneapolis.  These stations will be located in proximity to  Highway 25 and Belt Line Boulevard, Highway 7 and Wooddale Avenue, and Louisiana Avenue and  Oxford Street.      City Council Meeting of December 20, 2010 (Item No. 8c) Subject: Second Reading - Ordinance Providing for a Local Lodging Tax Page 39   3    As a result of its pivotal location, St. Louis Park is a convenient place to hold an event or meeting and is  home to one of the largest offerings of hotel rooms located outside of Minneapolis and Saint Paul.  The  community augments these offerings with a growing and unique mix of amenities that lure the traveler  including free parking, convenience, and value‐added travel savings.      Key Strategies  • Develop a marketing program that encompasses measurable results and meets the strategic  objectives of the Convention and Visitors Bureau.    • Develop a powerful website which will be used as the primary information portal and marketing  resource.      • Initiate efforts toward creating an experience in St. Louis Park for all travelers including a  promise of exceptional customer service.  • Communicate the importance of the tourism industry and its economic impact on the  community.        TRADITIONAL ADVERTISING AND PUBLICATIONS  Implement traditional advertising tactics to promote awareness of St. Louis Park as a travel destination,  take advantage of media partnerships, develop consumer based publications, and promote the  following marketing goals:  • Develop a comprehensive visitor’s guide which provides information and creates awareness of  St. Louis Park.   • Record and continually increase website traffic  • Record and increase inquires   • Develop and increase e‐newsletter subscriptions   • Create and enhance partnership opportunities  • Record and increase awareness levels    Tactics  Direct Mail  Execute select direct mail initiatives, with fulfillment based on current publication distribution needs.  Secure mailing lists through purchase and data gathering according to general target audience  demographics.    Metrics  • Response rate with minimum goal of ten percent (10%).    Magazines  Place small space magazine cooperative ads to promote general amenities and gain inquiry through  reader service.     Metrics  • Magazine circulation, geographic targeting to the Midwest, availability of reader service, and  estimate cost per inquiry.     City Council Meeting of December 20, 2010 (Item No. 8c) Subject: Second Reading - Ordinance Providing for a Local Lodging Tax Page 40   4    Online Banner Advertising  Online banner ads supplement traditional media buys as added value and drive consumers.  Banner ads  are placed on local media sites, tourism resource sites, and vertical activities (biking, golf, professional  sports, etc.)    Metrics  • Impressions, click‐through, conversions tracked for each online buy  • Track referral traffic from other sites     Television and Radio  To be determined based on cost and effectiveness within specific target markets.        INTERACTIVE MARKETING  The community’s travel website, www.experiencestlouispark.com is the primary online information  resource for the St. Louis Park Convention and Visitor’s Bureau.  Advertising and publications direct  travelers to this site and connect consumers to current information and real‐time reservations systems.   Paid keyword searches further drive travelers and increasingly, tourism is being directed through various  social media sites and blogs.         Tactics  Website:  experiencestlouispark.com  • Provide timely news, travel ideas, and information to generate interest in experiencing St. Louis  Park.  • Provide detailed information for planning trips, including lodging, events, attractions, and  accommodation deals.  • Offer e‐newsletters and electronic versions of all publications.  • Optimize the Web site (content, tags, etc.) to raise rankings on search engines.  • Solicit business to take advantage of free listings or increase revenue through expanded  advertising.  • Monitor the number of trip planner subscribers.  • Encourage links from other sites to increase Web traffic.    Metrics  • User sessions and page views on Web site  • Google analytics for referral traffic and trip planner details  • Search engine optimization outcomes    Paid Keyword Search  • Identify key words to direct consumers using Google, Yahoo or MSN search engines to specific  content on www.experiencestlouispark.com  • Target words to specific holidays, events or niche market opportunities     Metrics  • Maintain a cost‐per‐click (CPC) at an average of $.35  • Written recap for total monthly expenditures, impressions, clicks, CPC and top search terms  City Council Meeting of December 20, 2010 (Item No. 8c) Subject: Second Reading - Ordinance Providing for a Local Lodging Tax Page 41   5      Social Media  • Use Facebook, Twitter, YouTube and others to distribute timely marketing messages  • Create blogs for conversations on to push content   • Explore marketing opportunities such as blogs, Internet forums, social networking sites,  message boards and other forums that feature multi‐way conversations    Metrics  • Monitor Web traffic from social media sites  • Achieve a pre‐determined number of fans on Facebook and followers on Twitter  • Follow and monitor the distribution of messaging      PARTNERSHIP  SALES AND MARKETING  Coordination within the tourism industry, hospitality and attractions stakeholders, state tourism office,  and public and private sector partners allows St. Louis Park to compete and leverage each partner’s  assets.  Increasing marketing activities and promotions among key audiences through these types of  coordinated partnerships will be critical to the success of the Bureau.      Tactics  • Coordinate efforts to extend reach and impact in the market and avoid duplication.  • Develop shared marketing efforts with various attractions and community organizations  throughout the Twin Cities area.   • Develop marketing partnerships focusing on vertical markets, such as cultural heritage, medical,  biking, golf, etc.   • Offer cooperative and promotional opportunities to the industry through various advertising  tactics.    • Participate in a variety of tourism related associations and community based organizations  including but not limited membership within:   o Destination Marketing Association International (DMAI)  o Twin Cities Tourism Attractions Association (TCTAA)   o Minnesota Association of Convention & Visitors Bureaus (MACVB)  o Explore Minnesota  o Tour Minnesota Association (TMA)  o National Tour Association (NTA)  o American Bus Association (ABA)  o Midwest Society of Association Executives (MSAE)  o TwinWest Chamber of Commerce  o St. Louis Park Rotary Club  o Other  • Provide support to various community‐based organizations and events that increase tourism  and provide value to St. Louis Park  • Research and explore potential “high profile” events that could be developed for St. Louis Park  to enhance the attractions available and attract additional visitors and meeting travelers.   City Council Meeting of December 20, 2010 (Item No. 8c) Subject: Second Reading - Ordinance Providing for a Local Lodging Tax Page 42   6    Examples of such events would include Uptown Art Fair, Winter Carnival, Twin Cities Marathon,  etc.     • In cooperation with the hotels and other tourism‐related businesses, develop unique  partnership opportunities within their facilities to capture the traveler’s attention, providing  information in order to expand their stay and experience.  An example may include electronic  photo albums that provide information and visuals promoting attractions, events, etc.     Metrics  • Number of participants in cooperative marketing programs  • Total financial savings based on cooperative efforts  • Expansion of reach due to partnership marketing  • Inquiries generated by regional cooperative marketing  • Inquiries generated through marketing partnerships  • Amount of in‐kind and cash contributions      MEDIA RELATIONS  Media relations programs are designed to position St. Louis Park as a favorable alternative with local,  regional and national media.  The Convention and Visitors Bureau works to generate coverage in print,  electronic and broadcast media.     Tactics  • Develop and maintain media database consisting of contacts from throughout the Upper  Midwest region.  • Provide regular contact with news media outlets regarding economic development efforts and  trends associated with tourism in St. Louis Park.  • Submit timely and compelling story ideas to travel writers and editors.  • Distribute regular e‐mails to media contacts regarding current news and events.    • Generate coverage through direct events and news as well as through other vertical activities in  St. Louis Park by providing support at high‐profile events sponsored by other organizations.      Metrics  • Track contacts with media  • Monitor coverage of travel topics in the media      LEISURE TRAVEL: SALES AND MARKETING  Tourism is an $11.2 billion industry in Minnesota and the leisure and hospitality industry employs more  than 245,000 Minnesotans.  Defined as individuals and families traveling for pleasure, the leisure market  comes primarily from Canada and the Midwestern states of Minnesota, Wisconsin, Iowa, North Dakota  and South Dakota.      An Explore Minnesota Tourism study completed in 2004 demonstrated that shopping, scenic touring  and visiting friends and relatives were the most important activities of non‐Minnesotans traveling within  City Council Meeting of December 20, 2010 (Item No. 8c) Subject: Second Reading - Ordinance Providing for a Local Lodging Tax Page 43   7    the state.  Nationally, shopping is the number one activity for domestic travelers, followed by outdoor  activities and visiting museums and/or historic sites.      Due to the completion of several major economic development projects in St. Louis Park, the area now  boosts a strong shopping product.  Along with its adjacent proximity to downtown Minneapolis and  numerous other amenities, St. Louis Park can offer the leisure traveler an experience they soon won’t  forget.      Tactics  • The St. Louis Park Convention and Visitors Bureau publishes a consumer‐based destination guide  to generate travel by providing trip ideas and travel planning information, and to link the leisure  traveler to tourism‐based businesses and organizations through advertising.  • Purchase lists of consumers who have contacted Explore Minnesota Tourism for travel  information needs.  • Designation as an affiliate to Explore Minnesota Tourism for distribution of state travel  publications.  • Develop a branding technique for all efforts directed in key geographic markets.  • Participate in cooperative advertising with neighboring CVBs and Minnesota Office of Tourism.   Such advertising could include but not be limited to:  o Minnesota Travel Guide  o Minnesota Explorer Travel Newspaper  o Minneapolis Saint Paul Area Playbook  • Seek out marketing partnerships with area attractions and businesses located throughout the  Twin Cities metropolitan area.  • Develop relationship with Minnesota Office of Tourism, working with its travel counselors,  Travel Information Centers, and the Explore Minnesota store at the Mall of America to keep  these travel representatives aware of St. Louis Park.    • Create an electronic email/e‐news resource for leisure travelers to ensure they receive multiple  contacts annually and bring them back for extended stays.  • Explore various tradeshows/sales mission opportunities to participate in to create awareness of  St. Louis Park as a leisure destination.      Metrics  • Track the number of publications and electronic communications being distributed through all  methods as outlined.  • Increase the total percentage of occupancy and revenue generated within the cumulative  number of hotel rooms located in St. Louis Park.  • Increase the number of partnerships and cooperative advertising opportunities.  • Establish relationships with Explore MN through active participation and membership with  various tourism‐related councils, committees, and events.      GROUP TOUR SALES AND MARKETING  North American group and packaged travel, including the United States and Canada are organized by  tour operators, charter bus companies, and group leaders who are selling a destination or a combination  of destinations within specialized itinerary.  An individual group leader may purchase a packaged tour  City Council Meeting of December 20, 2010 (Item No. 8c) Subject: Second Reading - Ordinance Providing for a Local Lodging Tax Page 44   8    through a tour operator or organize his/her own group tour.  Travel is most often by motor coach and  tours can range in age categories from high school to seniors.      Tactics  • Generate awareness and a positive image of St. Louis Park among prospective group tour  planners.  • Develop an online strategy to assist group tour operators in tour planning.  • Participate in regional tradeshows attended by tour operators, bus companies and group  leaders.    • In partnership with Explore Minnesota Tourism, participate in annual sales conventions with the  National Tour Association (NTA) and American Bus Association (ABA).    • Advertise in the Group and Packaged Travel Planner through Explore Minnesota.   • Co‐sponsor familiarization tours organized by Explore Minnesota Tourism.  These trips for  domestic tour operators familiar them with Minnesota destinations and provide information  they need to develop group tours to our state.   Co‐sponsors must provide complimentary  lodging, meals, attractions and guide services, participate in itinerary development and  accommodate a group of 40.    • In cooperation with Explore Minnesota Tourism and tourism industry partners, participate in  various group tour trade shows which may include some of the following:  o American Bus Association Convention  o Heartland Travel Showcase  o Heritage Club International  o Jack Rabbit Tour & Travel Show  o International Motor coach Group Meeting  o Student and Youth Travel Association  o National Tour Association Convention  • Develop a group page with www.experiencestlouispark.com   • Develop a group tour newsletter to market new itinerary ideas and attractions.    • Enlist several volunteers to aid in group tour efforts including the creation and solicitation of gift  bags, guest services, etc.   • Research and develop if appropriate “packages” that can be marketed to group tour operators,  making St. Louis Park an attractive destination and unique experience among their many  choices.  • Research methods to track group tour visitation and economic impact on the local economy.      Metrics  • St. Louis Park shall carve a strong niche in this market and be recognized as a leader in the Twin  Cities for attracting group tours.  • Industry participation in shows, sales missions and fam tours.  • Number of quality leads from trade shows  • Web analytics   • Inquiries from tour operators  • Media coverage in travel trade publications      City Council Meeting of December 20, 2010 (Item No. 8c) Subject: Second Reading - Ordinance Providing for a Local Lodging Tax Page 45   9    MEETINGS AND CONVENTIONS SALES AND MARKETING  The St. Louis Park Convention and Visitors Bureau will market the multiple amenities available to  meeting and convention guests.  Whether it’s an individual meeting with a local business executive,  meeting planners working to accommodate an annual meeting with 100 attendees or a major  convention looking to come to the Twin Cities, St. Louis Park is perfectly positioned to create a unique  experience.   Typically meeting space, overnight guest rooms and catering are part of the package.      Several properties in St. Louis Park can accommodate meetings and conventions and offer a wide array  of amenities and attractions.  St. Louis Park can be competitive for meetings, and national or statewide  conventions against several other metro communities.  Additionally, corporate retreats, weddings, and  similar events are a good market for St. Louis Park due to its geographic proximity to downtown  Minneapolis and the MSP International Airport.      Tactics  • Develop a meeting planner sales department, whereby the following array of complimentary  services can be offered:  o Research meeting space availability and rates  o Research corporate rates for groups of 10 or more  o Secure room blocks  o Site inspections  o Resource guide  o Attraction information for pre and post conference activities  o Welcome packets for conference attendees (visitor guides, maps, and coupon books)  o Bid proposals and presentations  o Registration assistance  • Develop a meeting and convention planner resource section on  www.experiencestlouispark.com  • Position St. Louis Park as an alternative for small to mid‐size meetings and conventions among  the Twin Cities metro meetings market.   • Advertise in select Twin Cities meetings publications including but not limited to:  o Minnesota Meetings & Events Resource Directory  o Midwest Meetings Annual Guide Book  o Minnesota’s Hospitality Journal  o Minnesota Meetings & Events  o Local community organizations publications  • Partner with St. Louis Park‐based meeting/convention facilities to increase marketing  capabilities.  • Develop e‐news marketing publication for distribution to meeting planners, associations, etc.  • Participate in the RFP program through Explore Minnesota Tourism to receive direct information  from parties interested in hosting a meeting in Minnesota.   • Participate in appropriate MeetinMinnesota efforts based on current activities and successes,  sponsored by Explore Minnesota Tourism.    • Maintain database of meeting planners and existing convention contacts.  • Participate in local and regional groups such as Midwest Society of Association Executives  (MSAE) to create awareness of St. Louis Park as a meeting destination.  City Council Meeting of December 20, 2010 (Item No. 8c) Subject: Second Reading - Ordinance Providing for a Local Lodging Tax Page 46   10    • Research and develop if appropriate “packages” that can be marketed to meeting planners,  making St. Louis Park an attractive destination and unique experience among their many  choices.  • Through active community relations efforts, develop small business and corporate relations with  existing companies to expand awareness of St. Louis Park as a meeting destination.      Metrics  • Lead generation through multiple marketing channels.  • Track inquires from traditional means and web analytics.  • Direct contact with corporations and associations booking meetings/convections in St. Louis  Park and adjacent communities.  • Develop report on new meetings and conventions that includes information such as number of  delegates, guest rooms, welcome packet distribution and other economic impact calculations.        SPORTS SALES AND MARKETING  Because sports marketing has been identified as a growth area of Minnesota’s tourism efforts, coupled  with St. Louis Park’s geographic proximity to downtown Minneapolis and local facilities, the Convention  and Visitors Bureau has identified this as one of two niche opportunities.      Tactics  • Develop and promote a web‐based resource of information about sports facilities and related  events and organizations.  • Assist local organizations and event owners with recruiting tournaments to the community.  • Participate in sports‐related trade shows to promote awareness of St. Louis Park as a  destination.  Examples may include markets within Minnesota, North Dakota and Iowa.  • Coordinate with local associations to create and distribute press materials to sports media  contacts.   • Research and develop if appropriate “packages” that can be marketed to sports enthusiasts,  making St. Louis Park an attractive destination and unique experience among their many  choices.    Metrics  • Number of listings in sports marketing database  • Increase in the number of local tournaments over existing events      City Council Meeting of December 20, 2010 (Item No. 8c) Subject: Second Reading - Ordinance Providing for a Local Lodging Tax Page 47   11    MEDICAL SALES AND MARKETING  With several renowned medical facilities located within St. Louis Park, many visitors are friends, family  members and caregivers spending time with loved ones.   Through a coordinated effort with the medical  facilities and other community organizations, the Convention and Visitors Bureau will provide quality‐ assured customer service and resources to enhance their experience.    Tactics  • Develop and promote a web‐based resource of information about the medical facilities and  resources available to caregivers and visitors.  • Coordinate with local medical facilities to create and distribute materials to visitors.  These  facilities may include:  o Park Nicollet Clinic  o Methodist Hospital  o Frauenshuh Cancer Center  o Melrose Institute  o The Emily Program  o Davita Kidney Dialysis Center  o St. Louis Park Dialysis  o Lifescan Upright, MRI    Metrics  • Track the number of visitors, unique page views and click through within the medical resources  area on www.experiencestlouispark.com  • Track the distribution of printed materials.  • Track the number of inquiries regarding this niche market.      INTERNATIONAL SALES AND MARKETING  During the early stages of organization development, the St. Louis Park Convention and Visitors Bureau  shall direct international marketing efforts through a cooperative approach with the Minnesota Tourism  office.  Minnesota’s target markets include Canada, United Kingdom, Japan, China, Germany, Norway,  Sweden, and Denmark.  The state’s international marketing program works to increase the number of  international visitors, extend the length of stay, and expand the product offerings.        Tactics  • Cooperative participation in shows, sales missions, ad busy and fam tours with tourism partners  and the Minnesota Tourism Office.  • Implementation of other tactics as described in leisure travel and meetings and conventions.       Metrics  • Document international traveler information within other metrics as outlined in the marketing  plan.      City Council Meeting of December 20, 2010 (Item No. 8c) Subject: Second Reading - Ordinance Providing for a Local Lodging Tax Page 48   12    MISCELLANOUS TACTICS FOR SALES AND MARKETING  Whether they remain in a short term or long‐term strategic plan, several additional areas of work can be  lead by the Bureau to enhance overall marketing efforts and effectively impact the economic  environment of St. Louis Park.      Tactics  Travel Information Network  Establish St. Louis Park as an additional travel information center within the Twin Cities area through  relationships with Explore Minnesota Tourism.  Currently six travel information centers are located on  major interstate highways and four operate on trunk highways throughout the state.  The newest  endeavor could be located within St. Louis Park via an interstate or at a multi‐modal hub designated  area.     Metrics  • Creation of a travel center prior to 2015.    Grant Programs  Provide partnerships grants and incentives to attract new leisure travelers and meeting/conventions to  the area and leverage assets with other community organizations and tourism‐related businesses.    Metrics  • Project by project basis  • Survey of grant recipients and users to estimate return on investment.    Education, Policy and Research  Creating a general awareness on the overall economic impact of tourism is critical to garner overall  support of the St. Louis Park Convention and Visitors Bureau.  Positioning itself as a thought leader  within the community, the Bureau can achieve success and in return can educate and advocate on  behalf of the tourism industry.    Metrics  Key stakeholder satisfaction surveys.    City Council Meeting of December 20, 2010 (Item No. 8c) Subject: Second Reading - Ordinance Providing for a Local Lodging Tax Page 49 - 1 - Proposed EAGAN CVB Performance Goals and Measures No Goal Measures Tracking Methods 1 Increase in lodging tax collections. Total lodging tax collection by the City. This is the single most effective measure of CVB performance. It’s currently collected data and is reported by the City’s CFO (auditable). Tracking Method: City’s monthly payables report. 2 Increased lodging sales during spring, fall & winter months. Compare year-to-year occupancy rates, ADR and revenue per room (rev par). Numbers from all three categories can easily be collected and compared against previous years. Information currently collected by CVB and will be verified using the STR report every fourth year. Tracking Method: CVB’s monthly/yearly ADR/rev par reports. 3 Increased number of meetings & conventions. Tally the number of meetings and conventions booked in the City. Number of events booked (results, not activity) through or as a result of CVB efforts measures the CVB’s meeting/corporate travel sales marketing success (auditable). Tracking Method: Meetings activity reports generated through ACT! 4 Help the City’s restaurants, attractions, events and venues benefit from tourism. Track the number of coupons, advertisements and other promotions restaurants, attractions, events and venues participate/are listed in. Grid will be created listing all of the promotional aspects restaurants, attractions, events and venues are listed in – “Impact” report outlining the aforementioned aspects will be mailed to hospitality industry annually. Tracking Method: Newly created “Impact” report. 5 Create greater economic impact. Calculate economic impact through a comprehensive study. Outside firm will perform study every four years beginning in 2008 – comparably sized communities from across the nation will be identified and used in comparison. Tracking Method: Tourism Research firm or U of M Tourism Center. 6 Improved ROI. Ratio of economic impact to CVB spending. Associated research and methodology are auditable. Tracking Method: CVB’s monthly inquiry report. 7 Increased number of travel groups booked. Number of groups booked at lodging properties and/or venues in the City. Number of bookings measures the CVB’s PR/events/group/sports travel sales marketing success. Total number of bookings will be compared to total inquiries – lost business will also be tracked along with explanations. Tracking Method: Group activity reports generated through ACT! 8 Enhance CVB’s marketing and PR functions. Track CVB’s Web site activity, distribution of news releases, attendance at travel writer shows. Destination Marketing Organization Int’l (DMOI) standard media tracking criteria will be used (news releases/video clips distributed vs. coverage, travel show attendance/pitches, Web site statistics, fam tours conducted, newsletters/direct mail pieces distributed). Tracking Method: Newly created “Communications Activity” report. City Council Meeting of December 20, 2010 (Item No. 8c) Subject: Second Reading - Ordinance Providing for a Local Lodging TaxPage 50 - 2 - Fargo CVB Performance Goals and Measures Goal Metrics Comments To measure and increase the numbers in the metrics Annual Room Night Goals Trade Shows Sales Call Goals We need to keep in mind that we’re selling a product that we (A) don’t control, (B) can’t price, (C) can’t guarantee the quality and no one comes  to us with money so numbers of transactions always boil down to estimates.  I’d advise against trying to measure things like hotel occupancy, ADR or amount of lodging tax collected because these are largely outside of your ability to control. For instance, hotel occupancy can be affected by the hotel’s aggressiveness in sales, by pricing, by the economy, by the events coming to other parts of the Twin Cities, etc. And lodging tax collections can be affected by whether the properties are remitting the tax quickly or dragging their feet. These are more a measure of the state of the industry. And good luck trying to measure visitors. That’s a guess unless you put 5 figures of your budget into primary research to survey. I’m not sure how your budget will break down but we have to be a full-service CVB so a bunch of our money goes into paying sales people, traveling to trade shows, and out-of-town sales calls. We also have an aggressive philosophy of event services while groups are in town. The largest part of our budget is oriented to group room night sales and service. The smallest part of our budget is leisure advertising which may be the largest part of yours, depending on your lodging mix. That will require a different set of metrics.   City Council Meeting of December 20, 2010 (Item No. 8c) Subject: Second Reading - Ordinance Providing for a Local Lodging TaxPage 51 Meeting Date: December 20, 2010 Agenda Item #: 8d Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Adoption of 2010 Revised Budget, 2011 Budgets, 2011 City and HRA Property Tax Levies, 2011 – 2015 Capital Improvement Plan and 2011 Utility Rates. RECOMMENDED ACTION: Motion to Adopt Resolution adopting the 2010 Revised General and Park and Recreation Fund Budgets, 2011 Budgets and authorizing the 2011 Final Property Tax Levy. Motion to Adopt Resolution authorizing the 2011 Final HRA Levy. Motion to Adopt Resolution adopting the 2011-2015 Capital Improvement Program (CIP). Motion to Adopt Resolution setting the 2011 Utility Rates POLICY CONSIDERATION: • Does the City Council desire to adopt the 2010 Revised General and Park and Recreation Fund Budgets, and 2011 Budgets for General, Park and Recreation, Enterprise, Internal Service, Special Revenue, and select Capital Projects Funds? • Does the City Council desire to adopt the 2011 Final Property Tax Levy at $23,363,472, which is an increase of $898,074, or 4.00% over 2010? • Does the City Council desire to authorize the full 0.0185% of taxable market value allowable for HRA purposes to assist in paying for infrastructure needs in redeveloping areas? If so, the 2011 Final HRA Levy authorized is $1,028,888, which is a decrease of $14,453 or 1.39% less than 2010. • Does the City Council desire to adopt the 2011 – 2015 Capital Improvement Plan (CIP)? • Does the City Council desire to set the 2011 Utility Rates as proposed? BACKGROUND: 2011 General Property Tax Levy Over the past several months continued discussions regarding the 2011 Budget have taken place with the City Council. On September 7, 2010 the City Council adopted a resolution and set the Preliminary Property Tax Levy of $23,562,306, which is an increase of $1,096,913, or 4.88% from 2010. The Truth in Taxation Public Hearing was held on Monday December 6, 2010 during the regular City Council meeting with information reflecting the 4.88% levy increase. Based on the City Council study session on December 13, 2010, the Council provided direction to decrease the Final Property Tax Levy from $23,562,306 down to $23,363,467. The amount of City Council Meeting of December 20, 2010 (Item No. 8d) Page 2 Subject: Adoption of 2010 Revised Budget, 2011 Budgets, 2011 City and HRA Levies, CIP and Utility Rates $23,363,467 to be certified to Hennepin County is an increase of $898,074, or 4.00% compared to 2010. Below is information as it pertains to the 2011 Total Ad Valorem Levy with Special Levies and how those tax dollars are planned to be segregated among various funds: 2010 2011 Dollar Change Percent Change Levy Final From 2010 From 2010 TAX CAPACITY BASED TAX LEVY General Fund and Park & Recreation Fund $19,543,393 $20,094,172 $550,779 2.82% Park Improvement Fund 810,000 1,519,000 709,000 87.53% Capital Replacement Fund 338,300 338,300 - 0.00% Pavement Management Fund 415,000 415,000 - 0.00% Debt Service 1,358,700 996,995 (361,705) -26.62% TOTAL TAX LEVIES $22,465,393 $23,363,467 $898,074 4.00% 2011 HRA Levy This levy was originally implemented in St. Louis Park due to legislative changes in 2001 which significantly reduced future tax increment revenues. The City Council has elected to use the levy proceeds for future infrastructure improvements in redevelopment areas. Thus far, some of the HRA levy proceeds have been used to fund infrastructure studies and analysis for future improvement projects. By law, these funds could also be used for other housing and redevelopment purposes. Given the significant infrastructure needs facing the City in the future particularly for transportation infrastructure such as Highway 7 and Louisiana and possibly the Highway 100 reconstruction, it is recommended that the HRA levy continue to be set at the maximum allowed by law for the 2011 budget year. The EDA, as well as the City Council, is required to approve this levy. The EDA is requested to approve the HRA Levy on December 20, 2010 before the Regular City Council meeting. As outlined in the resolution, the HRA levy cannot exceed 0.0185% of the taxable market value of the City. Therefore, the maximum HRA Levy for 2011 is $1,028,888. This is a $14,453 decrease, or 1.39% less from the 2010 HRA Levy of $1,043,341. General and Park and Recreation Fund Revenue and Expenditure Summary Budget Data The following two pages depict summaries of revenues and expenditures for the General and Park and Recreation Funds: City Council Meeting of December 20, 2010 (Item No. 8d) Page 3 Subject: Adoption of 2010 Revised Budget, 2011 Budgets, 2011 City and HRA Levies, CIP and Utility Rates General Fund and Park & Recreation Summary of Revenues 2010 2011 Dollar % Change Final Requested Change Final to '11 AVAILABLE RESOURCES General Fund Revenues: General Property Taxes 14,889,605$ 15,426,072$ 536,467 3.60% Licenses and Permits 2,294,768 2,345,910 51,142 2.23% Intergovernmental 1,598,787 1,136,187 (462,600) -28.93% Charges for Services 1,138,018 1,152,642 14,624 1.29% Fines, Forfeits, and Penalties 311,750 328,200 16,450 5.28% Investment Earnings 200,000 200,000 - 0.00% Miscellaneous Revenue 101,600 104,900 3,300 3.25% Transfers In 2,583,825 2,589,876 6,051 0.23% Use of Fund Balance 51,000 - (51,000) -100.00% Total General Fund Revenues 23,169,353$ 23,283,787$ 114,434 0.49% Appropriations 23,169,353$ 23,283,787$ 114,434 0.49% Net Revenue Over (Under) Appropriations -$ (0)$ Park & Recreation Revenues: General Property Taxes 4,014,872$ 4,000,561$ (14,311) -0.36% Licenses and Permits 6,275 6,600 325 5.18% Intergovernmental 71,219 77,652 6,433 9.03% Charges for Services 1,073,900 1,095,250 21,350 1.99% Fines, Forfeits, and Penalties - - - 0.00% Investment Earnings - - - 0.00% Miscellaneous Revenue 919,900 952,400 32,500 3.53% Transfers In - - - 0.00% Total Park & Recreation Revenues 6,086,166$ 6,132,463$ 46,297 0.76% Appropriations 6,086,166$ 6,132,463$ 46,297 0.76% Net Revenue Over (Under) Appropriations (0)$ 0$ Grand Totals:29,255,519$ 29,416,250$ 160,731$ 0.55% GRAND TOTAL REVS OVER EXPENDITURES:(0)$ City Council Meeting of December 20, 2010 (Item No. 8d) Page 4 Subject: Adoption of 2010 Revised Budget, 2011 Budgets, 2011 City and HRA Levies, CIP and Utility Rates General Fund and Park & Recreation Summary of Expenditures Department, Division 2010 2011 Dollar % Change and Activity Final Requested Change Final to '11 General Government: Administration/Legislative/Human Resources 1,569,422$ 1,542,570$ (26,853) -1.71% Communications & Marketing 281,905 294,470 12,565 4.46% Community Outreach 86,255 88,515 2,260 2.62% Information Resources 1,400,666 1,394,226 (6,440) -0.46% Accounting/Assessing 1,078,930 1,113,106 34,176 3.17% Community Development 1,051,150 1,094,186 43,036 4.09% Facilities Maintenance 1,081,742 1,114,550 32,808 3.03% Total General Government 6,550,070 6,641,622 91,552 1.40% Public Safety: Police 7,306,402 7,208,512 (97,890) -1.34% Fire Protection 3,122,173 3,164,344 42,171 1.35% Inspectional Services 1,816,227 1,863,296 47,069 2.59% Total Public Safety 12,244,802 12,236,152 (8,650) -0.07% Public Works: Public Works Administration 854,900 829,698 (25,203) -2.95% Engineering 829,800 846,031 16,231 1.96% Operations 2,509,100 2,550,285 41,185 1.64% Total Public Works 4,193,800 4,226,014 32,214 0.77% Park & Recreation: Organized Recreation 1,245,408 1,239,230 (6,178) -0.50% Recreation Center 1,436,858 1,442,447 5,589 0.39% Park Maintenance 1,396,715 1,435,374 38,659 2.77% Westwood 493,450 502,366 8,916 1.81% Environment 351,543 371,325 19,782 5.63% Vehicle Maintenance 1,162,192 1,141,721 (20,471) -1.76% Total Park & Recreation 6,086,166 6,132,462 46,296 0.76% Non-Departmental: General Services/Contingency 180,681 180,000 (681) -0.38% Total Non-Departmental 180,681 180,000 (681) -0.38% Total General & Park Funds 29,255,519$ 29,416,250$ 160,731 0.55% Other Budgets–Enterprise, Internal Service, Special Rev. and Select Capital Project Funds Summaries for Enterprise, Internal Service, Special Revenue and relevant Capital Projects Funds that departments budgeted for in 2011, are provided in the attached resolution. This is a change from previous years, as staff thought it was important to show a more comprehensive picture of the resources the City is entrusted with and have the City Council adopt those additional budgets. Therefore, the total expenditures that the City budgets for is approximately $48 million, with City Council Meeting of December 20, 2010 (Item No. 8d) Page 5 Subject: Adoption of 2010 Revised Budget, 2011 Budgets, 2011 City and HRA Levies, CIP and Utility Rates $29.4 million or 61.2% being for the General and Park and Recreation Funds and the remaining $18.6 million or 38.8% being for the other funds. 2011 – 2015 Capital Improvement Plan (CIP) The City Council reviewed the CIP at study sessions throughout the 2011 Budget process. The next five years could be the most significant infrastructure construction period the City of St. Louis Park has experienced. This is evident with the upcoming construction of two fire stations, current completion of Wooddale Ave. and Highway 7, and the anticipated Highway 7 and Louisiana Ave. interchange project scheduled during this period. In addition, continued investment in the regular cycle of street reconstruction projects, utility infrastructure improvements, and replacement of existing vehicles and equipment is occurring. Therefore, it is vital that careful planning continues to occur in an effort to maintain financial stability while still investing in capital. The 2011 – 2015 CIP shows that: • $168.8 million in planned investment over the next five years • $109.7 million of this is planned as non-City resources such as federal, state and county government, in addition to Municipal State Aid (MSA), Met Council and other jurisdictions (not all of these dollars have been committed by these entities). • $2.3 million of estimated project costs do not have a funding source, most of which pertain to bikeways/sidewalks/trails. • Resources that the city has direct control over will require an investment of approximately $56.8 million over the next 5 years. Not included in the proposed 2011 - 2015 Capital Improvement Plan at this time include: • A civic/community center (Vision item). • Expansion of the city’s streets and utility systems (other than interchange projects). • Other non-planned projects or events. Only those projects included in the CIP for 2011 are authorized for purchase during the next year. The out years, 2012-2015 are for planning purposes only and do not represent a firm commitment to construct or purchase any specific assets until authorized by the City Council. Any projects estimated to cost more than $100,000 will be formally bid and brought back for acceptance by the Council. Utility Rates City staff, in conjunction with consultants, analyzed the City’s utility operations and capital plans over the next 10 years to determine if rate adjustments are needed to maintain long term sustainability in each of the four utility funds. The City Council reviewed and discussed information provided by staff over the course of the year to determine the proposed utility rates for 2011 to be considered this evening. Based on Council direction, the approximate cumulative effect on a residential property for all the utility rate adjustments would be approximately $63.00 for the year, or approximately $5.25 per month. This calculation is based on a family of four using 30 units of water per quarter (22,500 gallons), and 60 gallon solid waste service. City Council Meeting of December 20, 2010 (Item No. 8d) Page 6 Subject: Adoption of 2010 Revised Budget, 2011 Budgets, 2011 City and HRA Levies, CIP and Utility Rates The recommended rates will be in place for consumption or services provided beginning on January 1, 2011. The attached resolution provides specific information on the recommended rate adjustments for each fund. FINANCIAL OR BUDGET CONSIDERATION: The proposed budgets, tax levies, and utility rates will support necessary city services to be provided during 2011. In addition, the 2011 – 2015 Capital Improvement Plan provides a plan to allow the City to fund its infrastructure and equipment needs over the next five years. VISION CONSIDERATION: Vision, including strategic directions, was used in preparing the budget documents and many of the projects in the CIP have a direct relationship to the Strategic Directions adopted by the City Council. Attachments: - Resolution – Adopting the 2010 Revised General and Park and Recreation Funds Budgets, 2011 Budgets and adopting the 2011 Final Property Tax Levy - Resolution – Authorizing the 2011 HRA Levy - Resolution – Adopting the 2011 – 2015 Capital Improvement Plan - Resolution – Adopting the 2011 Utility Rates - CIP – Sources and Uses – 12-20-10 - CIP – Projects by Funding Source – 12-20-10 - CIP – Projects by Department – 12-20-10 Prepared by: Brian A. Swanson, Controller Approved by: Tom Harmening, City Manager City Council Meeting of December 20, 2010 (Item No. 8d) Page 7 Subject: Adoption of 2010 Revised Budget, 2011 Budgets, 2011 City and HRA Levies, CIP and Utility Rates RESOLUTION NO. 10-____ RESOLUTION ADOPTING THE 2010 REVISED GENERAL AND PARK AND RECREATION FUNDS BUDGETS, 2011 BUDGETS AND ADOPTING THE 2011 FINAL PROPERTY TAX LEVY WHEREAS, The City of St. Louis Park is required by Charter and State law to approve a resolution setting forth an annual tax levy to the Hennepin County Auditor; and WHEREAS, Minnesota Statutes currently in force require approval of a property tax levy and a budget in December of each year; and WHEREAS, the City Council has received the budget document; NOW THEREFORE, BE IT RESOLVED, by the City Council of the City of St. Louis Park that the 2010 Revised General and Park and Recreation Funds Budgets are adopted as presented in the 2010 budget document and the 2011 Budgets are adopted as presented in the 2011 budget document; and General Fund and Park & Recreation Summary of Budgeted Revenues 2010 2010 2011 Dollar % Change Adopted Final Requested Change Final to '11 AVAILABLE RESOURCES Gen. and Park and Rec. Rev.: General Property Taxes 18,904,477$ 18,904,477$ 19,426,633$ 522,156 2.76% Licenses and Permits 2,301,043 2,301,043 2,352,510 51,467 2.24% Intergovernmental 1,677,566 1,670,006 1,213,839 (456,167) -27.32% Charges for Services 2,205,918 2,211,918 2,247,892 35,974 1.63% Fines, Forfeits, and Penalties 311,750 311,750 328,200 16,450 5.28% Investment Earnings 200,000 200,000 200,000 - 0.00% Miscellaneous Revenue 1,021,400 1,021,500 1,057,300 35,800 3.50% Transfers In 2,583,625 2,583,825 2,589,876 6,051 0.23% Use of Fund Balance 51,000 51,000 - (51,000) -100.00% Total Gen. and Park and Rec. Rev.29,256,779$ 29,255,519$ 29,416,250$ 160,731 0.55% City Council Meeting of December 20, 2010 (Item No. 8d) Page 8 Subject: Adoption of 2010 Revised Budget, 2011 Budgets, 2011 City and HRA Levies, CIP and Utility Rates General Fund and Park & Recreation Summary of Budgeted Expenditures 2010 2010 2011 Dollar % Change Adopted Final Requested Change Final to '11 Total General Government 6,620,121 6,550,070 6,641,622 91,552 1.40% Total Public Safety 12,167,212 12,244,802 12,236,152 (8,650) -0.07% Total Public Works 4,187,166 4,193,800 4,226,014 32,214 0.77% Total Park & Recreation 6,102,280 6,086,166 6,132,462 46,296 0.76% Total Non-Departmental 180,000 180,681 180,000 (681) -0.38% Total General & Park Funds 29,256,779$ 29,255,519$ 29,416,250$ 160,731 0.55% City Council Meeting of December 20, 2010 (Item No. 8d) Page 9 Subject: Adoption of 2010 Revised Budget, 2011 Budgets, 2011 City and HRA Levies, CIP and Utility Rates Enterprise, Internal Service, Special Revenue and Select Capital Projects Funds Summary of Budgeted Revenues and Expenditures 2010 2011 Adopted Proposed HRA Levy Fund Total HRA Levy Revenues 1,143,341$ 1,155,888$ Total HRA Levy Expenditures 1,700,271$ 36,000$ Cable TV Fund Total Cable TV Revenues 600,000$ 555,000$ Total Cable TV Expenditures 576,415$ 619,341$ Development Fund Total Development Fund Revenues 961,892$ 1,010,892$ Total Development Fund Expenditures 765,723$ 849,393$ CDBG Fund Total CDBG Revenues 206,455$ 206,000$ Total CDBG Expenditures 206,455$ 205,681$ Housing Rehabilitation Fund Total Housing Rehab Revenues 560,000$ 1,100,000$ Total Housing Rehab Expenditures 1,270,305$ 1,273,015$ Water Utility Fund Total Water Revenues 3,872,766$ 5,312,894$ Total Water Expenses 5,182,472$ 4,465,990$ Sewer Utility Fund Total Sewer Revenues 4,889,104$ 5,358,033$ Total Sewer Expenses 5,396,775$ 5,306,726$ Solid Waste Utility Fund Total Solid Waste Revenues 2,687,930$ 2,894,000$ Total Solid Waste Expenses 3,803,132$ 2,829,735$ Storm Water Utility Fund Total Storm Water Revenues 1,916,318$ 1,993,698$ Total Storm Water Expenses 2,618,098$ 2,187,697$ Employee Flex Fund Total Employee Flex Revenues 55,000$ 59,000$ Total Employee Flex Expenses 553,000$ 614,000$ Uninsured Loss Fund Total Uninsured Loss Revenues 47,000$ 37,000$ Total Uninsured Loss Expenses 134,850$ 184,495$ City Council Meeting of December 20, 2010 (Item No. 8d) Page 10 Subject: Adoption of 2010 Revised Budget, 2011 Budgets, 2011 City and HRA Levies, CIP and Utility Rates BE IT FURTHER RESOLVED, that the City Council of the City of St. Louis Park, Hennepin County, Minnesota, that the following sums of money be levied in 2010, collectible in 2011 upon the taxable property in said City of St. Louis Park for the following purposes: 2011 FINAL TAX LEVY 2011 TAX CAPACITY BASED TAX LEVY General Fund and Park & Recreation Fund $20,094,172 Park Improvement Fund 1,519,000 Capital Replacement Fund 338,300 Pavement Management Fund 415,000 Debt Service 996,995 TOTAL 2011 TAX CAPACITY BASED TAX LEVY $23,363,467 Reviewed for Administration: Adopted by the City Council December 20, 2010 City Manager Mayor Attest: City Clerk City Council Meeting of December 20, 2010 (Item No. 8d) Page 11 Subject: Adoption of 2010 Revised Budget, 2011 Budgets, 2011 City and HRA Levies, CIP and Utility Rates RESOLUTION NO. 10-____ RESOLUTION APPROVING THE 2010 HRA LEVY COLLECTIBLE IN 2011 WHEREAS, pursuant to Minnesota Statutes, Section 469.090 to 469.108 (the “EDA Act”), the City Council of the City of St. Louis Park created the St. Louis Park Economic Development Authority (the "Authority"); and WHEREAS, pursuant to the EDA Act, the City Council granted to the Authority all of the powers and duties of a housing and redevelopment authority under the provisions of the Minnesota Statutes, sections 469.001 to 469.047 (the "HRA Act"); and WHEREAS, Section 469.033, subdivision 6 of the Act authorizes the Authority to levy a tax upon all taxable property within the City to be expended for the purposes authorized by the HRA Act; and WHEREAS, such levy may be in an amount not to exceed 0.0185 percent of taxable market value of the City; and WHEREAS, the Authority has filed its budget for the special benefit levy in accordance with the budget procedures of the City; and WHEREAS, based upon such budgets the Authority will levy all or such portion of the authorized levy as it deems necessary and proper; NOW THEREFORE BE IT RESOLVED by the St. Louis Park City Council: 1. That approval is hereby given for the Authority to levy, for taxes payable in 2011, such tax upon the taxable property of the City as the Authority may determine, subject to the limitations contained in the HRA Act. Reviewed for Administration: Adopted by the City Council December 20, 2010 City Manager Mayor Attest: City Clerk City Council Meeting of December 20, 2010 (Item No. 8d) Page 12 Subject: Adoption of 2010 Revised Budget, 2011 Budgets, 2011 City and HRA Levies, CIP and Utility Rates RESOLUTION NO. 10-____ RESOLUTION ADOPTING THE 2011-2015 CAPITAL IMPROVEMENT PROGRAM WHEREAS, the City Council of the City of St. Louis Park, Minnesota has received a report from the Controller related to proposed capital spending for 2011-2015; and WHEREAS, it is necessary for the city to maintain and replace its capital stock in order to enhance the city’s attractiveness to residents and businesses; and WHEREAS, good planning is a necessary part of the stewardship that the City Council and staff exercise over the physical plant of the city; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of St. Louis Park, MN, that: 1. The 2011-2015 Capital Improvements Program is hereby adopted. 2. The City Manager is authorized to purchase or undertake the items included in the fiscal year 2011 funded portion of the plan as allowed by the City Charter and state statutes. 3. All purchases required to be competitively bid must come before the City Council for final approval. Reviewed for Administration: Adopted by the City Council December 20, 2010 City Manager Mayor Attest: City Clerk City Council Meeting of December 20, 2010 (Item No. 8d) Page 13 Subject: Adoption of 2010 Revised Budget, 2011 Budgets, 2011 City and HRA Levies, CIP and Utility Rates RESOLUTION NO. 10-____ RESOLUTION SETTING UTILITY RATES WHEREAS, the City Council of the City of St. Louis Park, Minnesota has received a report through the Controller related to proposed utility rates; and WHEREAS, it is necessary for the city to maintain charges in an amount necessary to cover the cost of providing service to users; and WHEREAS, maintaining rates through regular adjustment is a recommended practice rather than large intermittent increases; NOW THEREFORE BE IT RESOLVED by the City Council of the City of St. Louis Park, MN, that: 1. The water rates as recommended are hereby adopted. Description Units of Usage* Adopted Rate Tier1 0 - 40 units (0-30,000 gallons) $1.35 Tier 2 41-80 units (30,001 – 60,000 gallons) $1.69 Tier 3 >80 units (>60,000 gallons) $2.53 Commercial All units $1.35 Irrigation All units $2.53 *1 unit equals 100 cubic feet or 750 gallons 2. The water meter charges recommended are hereby adopted. Residential/Multi-family Quarterly Fee Commercial Monthly Fee Meter Size 2011 2011 5/8" $10.15 $3.38 3/4" $10.15 $3.38 1" $14.21 $4.74 1.5" $18.27 $6.09 2" $29.44 $9.81 3" $111.65 $37.22 4" $142.10 $47.37 6" $213.15 $71.05 2" compound $29.44 n/a 3" compound $111.65 n/a City Council Meeting of December 20, 2010 (Item No. 8d) Page 14 Subject: Adoption of 2010 Revised Budget, 2011 Budgets, 2011 City and HRA Levies, CIP and Utility Rates 3. The Minnesota Department of Health for state testing for water quality will be imposed effective January 1, 2011 at a rate of $1.59 per quarter for residential and multi-family and $0.53 per month for commercial accounts. The sanitary sewer usage rate recommended is hereby adopted at $2.43 per unit. 4. The sanitary sewer base charge recommended is hereby adopted at $12.54 per quarter for residential and multi-family accounts and $4.18 per month for commercial accounts. 5. The storm sewer rate recommended is hereby adopted at $15.00 per residential equivalent unit and $25.00 per month for commercial accounts 6. The solid waste service charges recommended are hereby adopted. Service Level In Gallons Rates 30 $47.13 60 $59.94 90 $72.74 120 $85.56 150 $98.37 180 $111.18 210 $123.99 240 $136.80 270 $149.61 360 $188.05 450 $226.48 540 $264.90 Reviewed for Administration: Adopted by the City Council December 20, 2010 City Manager Mayor Attest: City Clerk Capital Improvement Program City of St. Louis Park, MN SOURCES AND DEPARTMENTS SUMMARY 2011 thru 2015 TotalSource2011 2012 2013 2014 2015 Cable TV - Time Warner Equipment Grant 493,150115,800 23,350 38,900 49,800 265,300 Capital Replacement Fund 10,563,4681,610,059 3,340,734 1,931,654 1,892,337 1,788,684 G.O. Bonds 12,516,19712,516,197 Henn Co Youth Sports Grant 215,000215,000 Hennepin County 1,120,000500,000 320,000 300,000 HRA Levy 3,410,5423,410,542 Met Council Grant 85,000,00012,000,000 34,000,000 12,000,000 12,000,000 15,000,000 Municipal State Aid 2,116,500427,000 472,500 540,000 385,000 292,000 Other Jurisdictions 900,000900,000 Park Improvement Fund 5,717,5001,509,500 941,000 707,000 895,000 1,665,000 Pavement Management Fund 8,010,6501,403,735 1,950,745 1,645,502 1,636,534 1,374,134 Police & Fire Pension 3,868,9253,055,125 30,125 125,125 620,925 37,625 PW Engineering Budget 35,0005,000 15,000 5,000 5,000 5,000 PW Operations Budget 1,457,853273,418 283,511 335,251 282,178 283,495 Sanitary Sewer Utility 1,523,400170,500 632,000 300,900 210,000 210,000 Special Assessments 889,000121,000 110,000 658,000 State of Minnesota 12,669,50012,444,500 225,000 Stormwater Utility 1,650,000730,000 230,000 230,000 230,000 230,000 Tax Increment - Elmwood 3,776,5093,776,509 U.S. Government 7,630,0007,630,000 Unfunded 2,268,844812,456 49,885 878,069 301,587 226,847 Water Utility 2,940,200278,000 617,100 1,370,000 275,100 400,000 35,621,790 70,288,501 20,442,401 19,741,461 22,678,085 168,772,238SOURCE TOTAL Total2011 2012 2013 2014 2015Department Buildings 17,320,19715,946,197 760,000 335,000 141,000 138,000 Cable TV 458,15080,800 23,350 38,900 49,800 265,300 Community Development 1,857,306294,592 506,249 479,102 577,363 Fire 400,000400,000 Parks & Recreation 10,997,9682,264,559 2,765,734 1,498,654 1,733,337 2,735,684 Public Works 133,540,69215,817,653 65,934,907 16,850,119 16,016,537 18,921,476 Technology 4,197,925730,125 786,125 930,125 1,133,925 617,625 35,133,926 70,776,365 20,131,900 20,051,962 22,678,085 168,772,238DEPARTMENT TOTAL City Council Meeting of December 20, 2010 (Item No. 8d) Subject: Adoption of 2010 Revised Budget, 2011 Budgets, 2011 Levies, CIP & Utility Rates Page 15 Capital Improvement Program City of St. Louis Park, MN PROJECTS BY FUNDING SOURCE 2011 2015thru TotalSourceProject# Priority 2011 2012 2013 2014 2015 Cable TV - Time Warner Equipment TRF-224 35,00035,000ArcGIS Server 3 TV-20110011 8,0008,000Replacement digital camcorders 1 TV-20110013 5,0005,000Studio Upgrade 3 TV-201101 750750Announcer Headsets 3 TV-201102 150150Announcer Table 3 TV-201103 15,00015,000Studio cameras 1 TV-201104 900900Microphones1 TV-201105 3,0003,000Tripod pedestal dolly 1 TV-201106 41,00041,000Video server, Cablecast controller & CG 1 TV-201107 7,0007,000Council Chambers A/V upgrade 1 TV-20120012 6,0006,000Knox Router for Chambers 1 TV-201201 2,0002,000Wireless mic systems 1 TV-201202 7,0007,000CG1 TV-201203 250250CD Player 1 TV201204 4,0004,000Production titler 1 TV-201204 1,2001,200Teleprompter1 TV-201206 1,5001,500DVD recorder 1 TV-201207 1,4001,400Computer1 TV-201301 300300Annoucer Monitor 3 TV-201302 40040050' audio snake 1 TV-201303 500500Shotgun mics 1 TV-201304 300300Hand-held mics 1 TV-201305 1,5001,500Behringer Audio Equipment 1 TV-201306 900900Camera Monitors 1 TV-201307 35,00035,000Replacement edit systems 1 TV-201401 500500DVD Recorders 1 TV-201402 30,00030,000Slow-motion replay 1 TV-201403 70070012-channel audio mixer 1 TV-201404 7,5007,500Digital camcorders 1 TV-201405 10,20010,200NLE stations 1 TV-201406 900900Microphones1 TV-201501 120,000120,000Van Cameras 3 TV-201502 20,00020,000Van Camera Cases 3 TV-201503 13,00013,000Van Camera Cables 3 TV-201504 15,00015,000LCD monitors 3 TV-201505 2,5002,500Hard-Drive Video Recorder 1 TV201506 6,0006,000Converter for Recorder 1 TV-201507 36,00036,000Tripods for On Location 1 TV-201508 16,50016,500Video Switcher 1 TV-201509 4,2004,200SD/HD converter 1 TV-201510 1,5001,500DVD recorders 1 TV-201511 1,5001,500Tripods1 TV-201512 900900Unit pro light kit 1 TV-201513 28,20028,200Playback systems 1 City Council Meeting of December 20, 2010 (Item No. 8d) Subject: Adoption of 2010 Revised Budget, 2011 Budgets, 2011 Levies, CIP & Utility Rates Page 16 TotalSourceProject# Priority 2011 2012 2013 2014 2015 493,150115,800 23,350 38,900 49,800 265,300Cable TV - Time Warner Equipment Grant Total Capital Replacement Fund 20091600 500,000500,000City Hall Space Reallocation 3 20091700 385,000385,000City Hall Garage Roof 1 2010PD1 10,00010,000Police Station Sidewalks 1 2011B1 15,00015,000Westwood Energy Improvement 3 2011B2 10,00010,000Energy Improvements - Police Department 3 2011PD2 10,00010,000Police Station Evidence Room Ventilation 1 2012B1 158,000150,000 8,000Parking Lot Rehabilitation Project 1 2012CH1 50,00050,000City Hall 1st Floor Covering 1 2012PD1 60,00060,000Police Station Boiler Recirculation 1 2013B1 50,00050,000City Hall 1st Floor Entry Canopy 1 2013CH1 100,000100,000City Hall 2nd Floor Covering 1 2013CH2 20,00020,000City Hall Garage Unit Heaters 1 2013CH3 50,00050,000City Hall Kewanee Boiler 1 2013PD1 100,000100,000Police Station Exterior Finishes 1 2013PD2 15,00015,000Police Station Fire Alarm Panel 1 2014CH1 100,000100,000City Hall 3rd Floor Covering 1 2014CH2 30,00030,000City Hall Alarm Panel 1 2014F1 400,000400,000SCBA Replacement 1 2014WNC1 11,00011,000Westwood Nature Center Parking/Driveway 1 2015CH2 30,00030,000City Hall Garage Overhead Doors 1 2015MSC1 100,000100,000MSC Generator Set 1 E - XX01 5,065,468540,059 1,824,734 791,654 838,337 1,070,684Annual Equipment Replacement Program 1 TRF-001 500,000100,000 100,000 100,000 100,000 100,000On-going Hardware / Telephone Replacement 1 TRF-002 750,000150,000 150,000 150,000 150,000 150,000On-going Software Replacement 1 TRF-003 375,00075,000 75,000 75,000 75,000 75,000On-going Network Replacement 1 TRF-213 100,000100,000Citywide Technology Study 3 TRF-215 200,000200,000PW Request: Software Consolidation/Replacement 3 TRF-218 50,00050,000***On-going SAN Storage Additions 1 TRF-219 25,00025,000***SAN Addition for Documents Imaging 1 TRF-220 100,000100,000Email Archival and Document Management Solution 3 TRF-221 10,00010,000Point of Sale Equipment Replacements 3 TRF-222 6,0006,000Wireless Equipment for Assessing Field Work 3 TRF-306 15,00015,000Fiber Conduit - Excelsior Blvd, La Ave-Hopkins 3 TRF-307 20,00020,000Fiber Conduit - West End Fr. Rd, Gamble, Utica 3 TRF-308 65,00065,000City Hall Production Copiers 3 TRF-309 30,00030,000MSC Copiers (2)3 TRF-310 3,0003,000City Hall Counter Copiers 3 TRF-312 60,00020,000 20,000 20,000Fiber Conduit - TBD 3 TRF-314 50,00050,000Police / Rec Center / Nature Center Copiers 3 TRF-321 250,000250,000Financial / HR/ Payroll App Replacement 1 TRF-322 210,000210,000Utility Billing App Replacement 1 TRF-345 30,00015,000 15,000Council Chambers Laptops 3 TRF-346 105,000105,000Voting Machines 1 TRF-347 40,00020,000 20,000Basic Windows 7 / Office 2010 Training 3 TRF-348 55,00055,000Nature Center Surveillance Cameras 3 TRF-349 5,0005,000Network Nature Center Picnic Building 3 TRF-350 2,0002,000Property Maintenance Field Laptop / Printer 3 TRF-352 8,0008,000Square Rigger Handhelds 1 TRF-353 14,00014,000UPS Enhancements 3 TRF-355 75,00015,000 15,000 15,000 15,000 15,000Reverse 911 3 City Council Meeting of December 20, 2010 (Item No. 8d) Subject: Adoption of 2010 Revised Budget, 2011 Budgets, 2011 Levies, CIP & Utility Rates Page 17 TotalSourceProject# Priority 2011 2012 2013 2014 2015 TRF-356 20,00020,000Oce Scanner / Copier 3 TRF-357 21,00021,000Engineering Total Station 1 TRF-400 100,000100,000Network Switches 1 10,563,4681,610,059 3,340,734 1,931,654 1,892,337 1,788,684Capital Replacement Fund Total G.O. Bonds 20081700 12,516,19712,516,197Fire Stations 1 & 2 Upgrade/Replacement 1 12,516,19712,516,197G.O. Bonds Total Henn Co Youth Sports Grant 20110050 200,000200,000Northside Park Redevelopment 1 20110160 15,00015,000Westwood HNC Climbing Wall 5 215,000215,000Henn Co Youth Sports Grant Total Hennepin County 20100005 320,000320,000Street Project - France Ave Improvements 5 TEMP-0011 500,000500,000Street Project - Excelsior Blvd Resurfacing 1 TEMP-0012 300,000300,000Street Project - Excelsior Blvd Resurfacing 1 1,120,000500,000 320,000 300,000Hennepin County Total HRA Levy 20120100 2,398,0002,398,000Street Project - Hwy 7 and Louisiana Ave Inter.5 20121300 1,012,5421,012,542Street Project - Wooddale Ave Reconstruction 5 3,410,5423,410,542HRA Levy Total Met Council Grant TEMP-0014 22,000,00022,000,000Sanitary Sewer Project- MCES Golden Valley 1 TEMP-0015 63,000,00012,000,000 12,000,000 12,000,000 12,000,000 15,000,000Sanitary Sewer Proj - MCES Hopkins Interceptor Reh 1 85,000,00012,000,000 34,000,000 12,000,000 12,000,000 15,000,000Met Council Grant Total Municipal State Aid 20050500 100,000100,000Street Project - W44th Street 1 20101100 327,000327,000Street Project - MSA Street Rehab 1 20111100 420,000420,000Street Project - MSA Street Rehab 1 20121304 27,50027,500Railroad Proj. - Repl RR Xing Signals on W Lake St 1 20121305 25,00025,000Railroad Proj. - Repl RR Xing Signals on Alabama 1 20131100 515,000515,000Street Project - MSA Street Rehab 1 20131301 25,00025,000Railroad Proj. - RR Xing Devices on Brookside Ave 1 20141100 385,000385,000Street Project - MSA Street Rehab 1 20150100 100,000100,000Street Project - TH 169 Noise Wall 3 20151100 192,000192,000Street Project - MSA Street Rehab 1 2,116,500427,000 472,500 540,000 385,000 292,000Municipal State Aid Total Other Jurisdictions City Council Meeting of December 20, 2010 (Item No. 8d) Subject: Adoption of 2010 Revised Budget, 2011 Budgets, 2011 Levies, CIP & Utility Rates Page 18 TotalSourceProject# Priority 2011 2012 2013 2014 2015 20150100 900,000900,000Street Project - TH 169 Noise Wall 3 900,000900,000Other Jurisdictions Total Park Improvement Fund 20071010 300,00060,000 60,000 60,000 60,000 60,000Tree Replacement 3 20110010 30,00030,000Aquila Park Storage Building 3 20110020 20,00020,000Bleacher Replacement-Dakota & Freedom Parks 1 20110030 10,00010,000Jorvig Park Depot Furnace Replacement 1 20110040 27,00027,000Lake Victoria Parking Lot (mill,overlay, landscpe)3 20110050 800,000800,000Northside Park Redevelopment 1 20110060 6,0006,000Oak Hill Park Parking Lot Seal Coat 3 20110070 10,00010,000Peter Hobart School Basketball Hoops 3 20110080 35,00035,000Playground Eqpt Replacement - Aquila Park 1 20110090 300,000300,000Rec Center East Arena Dehumidification 1 20110110 25,00025,000Rec Center Energy Upgrade-Showers in Pool Lckr Rms 3 20110120 58,00058,000Rec Center Front Office Remodel 5 20110130 10,00010,000Rec Center Parking Lot Medians 3 20110140 5,0005,000Scoreboard - Freedom Park (Paul Frank Field)5 20110150 35,00035,000Walker Park Irrigation Upgrade 3 20110160 3,5003,500Westwood HNC Climbing Wall 5 20110170 75,00075,000Westwood Hills Pond and Landscape Replacement 5 20120010 50,00050,000Basketball Ct Rplc- Ainsworth & Nelson Parks 3 20120020 20,00020,000Bleacher Rplcmnt-Cedar Knoll & Tower Parks 1 20120030 20,00020,000Carpenter Park - Skippy Field - Dug Outs 3 20120040 60,00060,000Dakota Park Softball Field #1 Redev & Fence Repl.3 20120050 17,00017,000Freedom Park-Paul Frank Baseball field fence repl.3 20120060 22,00022,000Louisiana Oaks Park Parking Lot seal coat 3 20120070 20,00020,000Park Shelter Bldg Stain-Oak Hill & LA Parks 3 20120080 140,000140,000Playground Equip Rpl-Oak Hill & Wolfe Pks 1 20120090 25,00025,000Rec Center Banquet Room remodel 3 20120110 60,00060,000Rec Center Lobby Lights 3 20120120 15,00015,000Rec Center PA System replacement 5 20120130 15,00015,000Rec Center Pool Pump Rebuild 3 20120140 24,00012,000 12,000Rec Center Rental Skate Purchase 5 20120150 20,00020,000Rec Center West Arena Refrigeration System Study 1 20120160 15,00015,000Scoreboards-Cedar Knoll & Carpenter Parks 3 20120170 200,000200,000Tower Park Field Redevelopment 3 20120180 50,00050,000Trail/Field Light Impr,Dakota & Louisiana Oaks Prk 3 20120190 15,00015,000Walker Park Field Fence 3 20120200 30,00030,000Rec Center Cooling Tower Enclosure Wall Rebuild 3 20120210 75,00075,000Rec Center Exterior Building Repair 3 20130010 30,00030,000Court Resrfcg-Bass Lake,Fern Hill & Carpenter Park 3 20130020 40,00040,000Cedar Knoll Park Storage & Concession Bldg Remodel 3 20130030 10,00010,000Dakota Park Baseball Field Netting Rplcmnt 1 20130040 60,00060,000Dakota Park Softball Fld #2-Redvlp & fence replace 3 20130050 35,00035,000Park Shelter Buildings Keyless Entry System 5 20130060 110,000110,000Playground Eqpt Repl.-Dakota & Oak Hill Park 1 20130070 65,00065,000Rec Center concession cooling system 1 20130080 30,00030,000Rec Center East Arena Rubber Flooring 3 20130090 20,00020,000Rec Center Gallery Update 3 20130110 55,00055,000Rec Center East Arena repainting 5 20130130 25,00025,000Rec Center West Arena Fire Protection 1 20130140 25,00025,000Rec Center Window Replacement 3 City Council Meeting of December 20, 2010 (Item No. 8d) Subject: Adoption of 2010 Revised Budget, 2011 Budgets, 2011 Levies, CIP & Utility Rates Page 19 TotalSourceProject# Priority 2011 2012 2013 2014 2015 20130150 40,00040,000Westwood Hills NC Brick House Kitchen Replacement 5 20130160 30,00030,000Westwood Hills NC Signage Replacement 5 20130170 20,00020,000Westwood Hills NC Staircase Rplcmnt (N)&Railing 1 20130190 40,00040,000Westwood Hills NC Y-Dock Replacement 3 20140010 25,00025,000Field Renovation Cedar Knoll (Carlson Field) Park 3 20140020 25,00025,000Pennsylvania Park Sun Shelter Replacement 3 20140030 70,00070,000Playground Equip Repl-Jersey & Rainbow Parks 1 20140040 80,00080,000Rec Center Roof Rplc (east arena & main lobby)1 20140050 75,00075,000Rec Center Security Cameras - Interior 5 20140060 325,000325,000Rec Center West Arena Dehumidification 1 20140070 35,00035,000Rec Center West Arena Painting 3 20140080 20,00020,000Westwood Hills Boardwalk Decking Replacement 3 20140090 10,00010,000Westwood Hills Deck Repairs 3 20140110 20,00020,000Westwood Hills NC Parking Lot & Drive Seal Coat 3 20140130 150,000150,000Wolfe Park Pond Dredge and Relandscaping 3 20150010 15,00015,000Basketball Court Resurface-Mkda V,Pen,Wolfe Pks 3 20150020 14,00014,000Court Resurface(tns)-Bass Lk,FernHill & Northside 3 20150030 10,00010,000Kilmer Pond Shoreline Restoration 3 20150040 200,000200,000Louisiana Oaks Park Field Lighing (NW fields)5 20150050 15,00015,000Louisiana Oaks Park Pond Shoreline Restoration 3 20150060 75,00075,000Playground Structure Replacement-Justad & Nelson 1 20150070 25,00025,000Rec Center Parking Lot Resurface/Recoat 3 20150080 1,000,0001,000,000Rec Center West Arena Refrigeration Replacement 1 20150090 50,00050,000Skate Park Equipment Replacement 3 20150110 30,00030,000Trail Recon. along CLR - Quentin Ave to Ridge Dr 1 20150120 5,0005,000Westwood Hills NC Brickhouse Parking Area 5 20150130 30,00030,000Westwood Hills NC Rental House Improvements 3 20150140 6,0006,000Westwood Hills NC Wildflower Trail Restoration 5 20150150 30,00030,000Westwood Hills Window Rplcmnt- Brick & Rental Hses 3 20150160 100,000100,000Wolfe Park Boardwalk Replacement 3 5,717,5001,509,500 941,000 707,000 895,000 1,665,000Park Improvement Fund Total Pavement Management Fund 20101000 1,093,8521,093,852Street Project - Local Street Rehab (Area 7)1 20110001 259,883259,883Street Mt Proj - Sealcoat Streets (Area 3)1 20110004 50,00050,000Street Maint. Project - Annual C & G Repairs 1 20111000 1,635,6641,635,664Street Project - Local Street Rehab (Area 8)1 20120001 265,081265,081Street Mt Proj - Sealcoat Streets (Area 4)1 20120004 50,00050,000Street Maint. Project - Annual C & G Repairs 1 20121000 1,325,1211,325,121Street Project - Local Street Rehab (Area 1)1 20130001 270,381270,381Street Mt Proj - Sealcoat Streets (Area 5)1 20130004 50,00050,000Street Maint. Project - Annual C & G Repairs 1 20131000 1,348,7441,348,744Street Project - Local Street Rehab (Area 2)1 20140001 237,790237,790Street Mt Proj - Sealcoat Streets (Area 6)1 20140004 50,00050,000Street Maint. Project - Annual C & G Repairs 1 20141000 1,148,0001,148,000Street Project - Local Street Rehab (Area 3)1 20150001 201,134201,134Street Mt Proj - Sealcoat Streets (Area 7)1 20150004 25,00025,000Street Maint. Project - Annual C & G Repairs 1 8,010,6501,403,735 1,950,745 1,645,502 1,636,534 1,374,134Pavement Management Fund Total Police & Fire Pension 20081700 3,000,0003,000,000Fire Stations 1 & 2 Upgrade/Replacement 1 City Council Meeting of December 20, 2010 (Item No. 8d) Subject: Adoption of 2010 Revised Budget, 2011 Budgets, 2011 Levies, CIP & Utility Rates Page 20 TotalSourceProject# Priority 2011 2012 2013 2014 2015 TRF-111 593,300593,300Fire / Police 800 MHz Radio Replacements 1 TRF-313 7,5002,500 2,500 2,500Fire / Police Wireless Hotspots 3 TRF-315 80,00080,000Police Mobile Replacements 1 TRF-316 30,00015,000 15,000***Fire Mobile Replacements 3 TRF-323 138,12527,625 27,625 27,625 27,625 27,625Police CAD/RMS/Mobile App Replacement 1 TRF-342 20,00010,000 10,000EOC Equipment 3 3,868,9253,055,125 30,125 125,125 620,925 37,625Police & Fire Pension Total PW Engineering Budget TEMP-0014 10,00010,000Sanitary Sewer Project- MCES Golden Valley 1 TEMP-0015 25,0005,000 5,000 5,000 5,000 5,000Sanitary Sewer Proj - MCES Hopkins Interceptor Reh 1 35,0005,000 15,000 5,000 5,000 5,000PW Engineering Budget Total PW Operations Budget 20110001 35,00035,000Street Mt Proj - Sealcoat Streets (Area 3)1 20110003 82,50082,500Sidewalk Maint. Project - Annual Repairs 1 20110004 12,50012,500Street Maint. Project - Annual C & G Repairs 1 20120001 35,00035,000Street Mt Proj - Sealcoat Streets (Area 4)1 20120003 82,50082,500Sidewalk Maint. Project - Annual Repairs 1 20120004 12,50012,500Street Maint. Project - Annual C & G Repairs 1 20130001 38,00038,000Street Mt Proj - Sealcoat Streets (Area 5)1 20130003 82,50082,500Sidewalk Maint. Project - Annual Repairs 1 20130004 12,50012,500Street Maint. Project - Annual C & G Repairs 1 20140001 38,00038,000Street Mt Proj - Sealcoat Streets (Area 6)1 20140003 82,50082,500Sidewalk Maint. Project - Annual Repairs 1 20140004 12,50012,500Street Maint. Project - Annual C & G Repairs 1 20150001 42,66542,665Street Mt Proj - Sealcoat Streets (Area 7)1 20150003 82,50082,500Sidewalk Maint. Project - Annual Repairs 1 20150004 12,50012,500Street Maint. Project - Annual C & G Repairs 1 M - XX07 52,2189,836 10,130 10,434 10,748 11,070Traffic Signal Maint. Project - Paint Signals 1 M - XX08 50,00010,000 10,000 10,000 10,000 10,000Retaining Wall Maint. Project - Wall Repair 1 M - XX10 649,004123,582 133,381 138,851 128,430 124,760Street Light Project - System Replacement 1 M - XX12 42,96642,966Bus Shelter Project - Shelter Replacements 1 1,457,853273,418 283,511 335,251 282,178 283,495PW Operations Budget Total Sanitary Sewer Utility 20112200 170,500170,500Sanitary Sewer Proj - Mainline Rehab (Area 7)1 20122200 157,000157,000Sanitary Sewer Proj - Mainline Rehab (Area 8)1 20122300 475,000475,000Sanitary Sewer Proj. - LS #3 and FM Rehab 1 20132200 175,900175,900Sanitary Sewer Proj - Mainline Rehab (Area 1)1 20132300 125,000125,000Sanitary Sewer Proj. - LS #7 Generator Replacement 1 20142200 150,000150,000Sanitary Sewer Proj - Mainline Rehab (Area 2)1 20142300 60,00060,000Sanitary Sewer Proj. - LS #10 and FM Rehab 1 20152200 150,000150,000Sanitary Sewer Proj - Mainline Rehab (Area 3)1 20152300 60,00060,000Sanitary Sewer Proj. - LS #4 & FM Rehab 1 1,523,400170,500 632,000 300,900 210,000 210,000Sanitary Sewer Utility Total Special Assessments 20141101 500,000500,000Street Project - MSA Street Rehab 1 City Council Meeting of December 20, 2010 (Item No. 8d) Subject: Adoption of 2010 Revised Budget, 2011 Budgets, 2011 Levies, CIP & Utility Rates Page 21 TotalSourceProject# Priority 2011 2012 2013 2014 2015 M - XX13 389,000121,000 110,000 158,000PW Parking Lot Rehabilitation Project 1 889,000121,000 110,000 658,000Special Assessments Total State of Minnesota 20120100 11,972,00011,972,000Street Project - Hwy 7 and Louisiana Ave Inter.5 20121304 247,500247,500Railroad Proj. - Repl RR Xing Signals on W Lake St 1 20121305 225,000225,000Railroad Proj. - Repl RR Xing Signals on Alabama 1 20131301 225,000225,000Railroad Proj. - RR Xing Devices on Brookside Ave 1 12,669,50012,444,500 225,000State of Minnesota Total Stormwater Utility 20072400 500,000500,000Storm Water Project - Lift Sta # 6 (Taft)1 20110006 30,00030,000Storm Water Project - Annual CB Repairs 1 20111200 200,000200,000Storm Water Project - Sewer Rehab / Replacement 1 20120006 30,00030,000Storm Water Project - Annual CB Repairs 1 20121200 200,000200,000Storm Water Project - Sewer Rehab / Replacement 1 20130006 30,00030,000Storm Water Project - Annual CB Repairs 1 20131200 200,000200,000Storm Water Project - Sewer Rehab / Replacement 1 20140006 30,00030,000Storm Water Project - Annual CB Repairs 1 20141200 200,000200,000Storm Water Project - Sewer Rehab / Replacement 1 20150006 30,00030,000Storm Water Project - Annual CB Repairs 1 20151200 200,000200,000Storm Water Project - Sewer Rehab / Replacement 1 1,650,000730,000 230,000 230,000 230,000 230,000Stormwater Utility Total Tax Increment - Elmwood 20082500 250,000250,000Traffic Signal Project - W36th St @ Xenwood Ave 5 20121300 987,458987,458Street Project - Wooddale Ave Reconstruction 5 20121301 2,039,0512,039,051Street Project - W36th Street Reconstruction 5 20121302 500,000500,000Traffic Signal Project - Wooddale @ W36th St 5 3,776,5093,776,509Tax Increment - Elmwood Total U.S. Government 20120100 7,630,0007,630,000Street Project - Hwy 7 and Louisiana Ave Inter.5 7,630,0007,630,000U.S. Government Total Unfunded 20052000 200,000200,000Street Project - TH 100 Reconstruction 1 CD-001 571,364571,364CD-Bikeways 5 CD-002 1,019,080211,092 18,385 789,603CD-Sidewalks 5 CD-003 266,862266,862CD-Trails 5 M - XX06 82,23855,391 26,847Traffic Signal Maint. Proj - Repl Control Cabinets 1 M - XX14 129,30030,000 31,500 33,075 34,725Street Name Sign Replacement Project 1 2,268,844812,456 49,885 878,069 301,587 226,847Unfunded Total Water Utility 20101300 581,700581,700Water Project - WTP #6 Filter Rehabilitation 1 City Council Meeting of December 20, 2010 (Item No. 8d) Subject: Adoption of 2010 Revised Budget, 2011 Budgets, 2011 Levies, CIP & Utility Rates Page 22 TotalSourceProject# Priority 2011 2012 2013 2014 2015 20101500 250,000250,000Water Project - Recoat Reservoir 2 @ WTP#6 1 20111400 278,000278,000Water Project - Watermain Replacement 1 20121400 35,40035,400Water Project - Watermain Replacement 1 20121500 1,110,0001,110,000Water Project - Recoat Elevated Water Tower #3 1 20131400 260,000260,000Water Project - Watermain Replacement 1 20141400 275,100275,100Water Project - Watermain Replacement 1 20151400 150,000150,000Water Project - Watermain Replacement 1 2,940,200278,000 617,100 1,370,000 275,100 400,000Water Utility Total 168,772,23835,621,790 70,288,501 20,442,401 19,741,461 22,678,085GRAND TOTAL City Council Meeting of December 20, 2010 (Item No. 8d) Subject: Adoption of 2010 Revised Budget, 2011 Budgets, 2011 Levies, CIP & Utility Rates Page 23 Capital Improvement Program City of St. Louis Park, MN PROJECTS BY DEPARTMENT 2011 2015thru Total2011 2012 2013 2014 2015DepartmentProject# Priority Buildings 20081700 15,516,19715,516,197Fire Stations 1 & 2 Upgrade/Replacement 1 20091600 500,000500,000City Hall Space Reallocation 3 20091700 385,000385,000City Hall Garage Roof 1 2010PD1 10,00010,000Police Station Sidewalks 1 2011B1 15,00015,000Westwood Energy Improvement 3 2011B2 10,00010,000Energy Improvements - Police Department 3 2011PD2 10,00010,000Police Station Evidence Room Ventilation 1 2012B1 158,000150,000 8,000Parking Lot Rehabilitation Project 1 2012CH1 50,00050,000City Hall 1st Floor Covering 1 2012PD1 60,00060,000Police Station Boiler Recirculation 1 2013B1 50,00050,000City Hall 1st Floor Entry Canopy 1 2013CH1 100,000100,000City Hall 2nd Floor Covering 1 2013CH2 20,00020,000City Hall Garage Unit Heaters 1 2013CH3 50,00050,000City Hall Kewanee Boiler 1 2013PD1 100,000100,000Police Station Exterior Finishes 1 2013PD2 15,00015,000Police Station Fire Alarm Panel 1 2014CH1 100,000100,000City Hall 3rd Floor Covering 1 2014CH2 30,00030,000City Hall Alarm Panel 1 2014WNC1 11,00011,000Westwood Nature Center Parking/Driveway 1 2015CH2 30,00030,000City Hall Garage Overhead Doors 1 2015MSC1 100,000100,000MSC Generator Set 1 17,320,19715,946,197 760,000 335,000 141,000 138,000Buildings Total Cable TV TV-20110011 8,0008,000Replacement digital camcorders 1 TV-20110013 5,0005,000Studio Upgrade 3 TV-201101 750750Announcer Headsets 3 TV-201102 150150Announcer Table 3 TV-201103 15,00015,000Studio cameras 1 TV-201104 900900Microphones1 TV-201105 3,0003,000Tripod pedestal dolly 1 TV-201106 41,00041,000Video server, Cablecast controller & CG 1 TV-201107 7,0007,000Council Chambers A/V upgrade 1 TV-20120012 6,0006,000Knox Router for Chambers 1 TV-201201 2,0002,000Wireless mic systems 1 TV-201202 7,0007,000CG1 TV-201203 250250CD Player 1 TV201204 4,0004,000Production titler 1 TV-201204 1,2001,200Teleprompter1 TV-201206 1,5001,500DVD recorder 1 TV-201207 1,4001,400Computer1 TV-201301 300300Annoucer Monitor 3 TV-201302 40040050' audio snake 1 TV-201303 500500Shotgun mics 1 City Council Meeting of December 20, 2010 (Item No. 8d) Subject: Adoption of 2010 Revised Budget, 2011 Budgets, 2011 Levies, CIP & Utility Rates Page 24 Total2011 2012 2013 2014 2015DepartmentProject# Priority TV-201304 300300Hand-held mics 1 TV-201305 1,5001,500Behringer Audio Equipment 1 TV-201306 900900Camera Monitors 1 TV-201307 35,00035,000Replacement edit systems 1 TV-201401 500500DVD Recorders 1 TV-201402 30,00030,000Slow-motion replay 1 TV-201403 70070012-channel audio mixer 1 TV-201404 7,5007,500Digital camcorders 1 TV-201405 10,20010,200NLE stations 1 TV-201406 900900Microphones1 TV-201501 120,000120,000Van Cameras 3 TV-201502 20,00020,000Van Camera Cases 3 TV-201503 13,00013,000Van Camera Cables 3 TV-201504 15,00015,000LCD monitors 3 TV-201505 2,5002,500Hard-Drive Video Recorder 1 TV201506 6,0006,000Converter for Recorder 1 TV-201507 36,00036,000Tripods for On Location 1 TV-201508 16,50016,500Video Switcher 1 TV-201509 4,2004,200SD/HD converter 1 TV-201510 1,5001,500DVD recorders 1 TV-201511 1,5001,500Tripods1 TV-201512 900900Unit pro light kit 1 TV-201513 28,20028,200Playback systems 1 458,15080,800 23,350 38,900 49,800 265,300Cable TV Total Community Development CD-001 571,36483,500 487,864CD-Bikeways 5 CD-002 1,019,080211,092 18,385 479,102 310,501CD-Sidewalks 5 CD-003 266,862266,862CD-Trails 5 1,857,306294,592 506,249 479,102 577,363Community Development Total Fire 2014F1 400,000400,000SCBA Replacement 1 400,000400,000Fire Total Parks & Recreation 20071010 300,00060,000 60,000 60,000 60,000 60,000Tree Replacement 3 20110010 30,00030,000Aquila Park Storage Building 3 20110020 20,00020,000Bleacher Replacement-Dakota & Freedom Parks 1 20110030 10,00010,000Jorvig Park Depot Furnace Replacement 1 20110040 27,00027,000Lake Victoria Parking Lot (mill,overlay, landscpe)3 20110050 1,000,0001,000,000Northside Park Redevelopment 1 20110060 6,0006,000Oak Hill Park Parking Lot Seal Coat 3 20110070 10,00010,000Peter Hobart School Basketball Hoops 3 20110080 35,00035,000Playground Eqpt Replacement - Aquila Park 1 20110090 300,000300,000Rec Center East Arena Dehumidification 1 20110110 25,00025,000Rec Center Energy Upgrade-Showers in Pool Lckr Rms 3 20110120 58,00058,000Rec Center Front Office Remodel 5 20110130 10,00010,000Rec Center Parking Lot Medians 3 20110140 5,0005,000Scoreboard - Freedom Park (Paul Frank Field)5 20110150 35,00035,000Walker Park Irrigation Upgrade 3 20110160 18,50018,500Westwood HNC Climbing Wall 5 20110170 75,00075,000Westwood Hills Pond and Landscape Replacement 5 City Council Meeting of December 20, 2010 (Item No. 8d) Subject: Adoption of 2010 Revised Budget, 2011 Budgets, 2011 Levies, CIP & Utility Rates Page 25 Total2011 2012 2013 2014 2015DepartmentProject# Priority 20120010 50,00050,000Basketball Ct Rplc- Ainsworth & Nelson Parks 3 20120020 20,00020,000Bleacher Rplcmnt-Cedar Knoll & Tower Parks 1 20120030 20,00020,000Carpenter Park - Skippy Field - Dug Outs 3 20120040 60,00060,000Dakota Park Softball Field #1 Redev & Fence Repl.3 20120050 17,00017,000Freedom Park-Paul Frank Baseball field fence repl.3 20120060 22,00022,000Louisiana Oaks Park Parking Lot seal coat 3 20120070 20,00020,000Park Shelter Bldg Stain-Oak Hill & LA Parks 3 20120080 140,000140,000Playground Equip Rpl-Oak Hill & Wolfe Pks 1 20120090 25,00025,000Rec Center Banquet Room remodel 3 20120110 60,00060,000Rec Center Lobby Lights 3 20120120 15,00015,000Rec Center PA System replacement 5 20120130 15,00015,000Rec Center Pool Pump Rebuild 3 20120140 24,00012,000 12,000Rec Center Rental Skate Purchase 5 20120150 20,00020,000Rec Center West Arena Refrigeration System Study 1 20120160 15,00015,000Scoreboards-Cedar Knoll & Carpenter Parks 3 20120170 200,000200,000Tower Park Field Redevelopment 3 20120180 50,00050,000Trail/Field Light Impr,Dakota & Louisiana Oaks Prk 3 20120190 15,00015,000Walker Park Field Fence 3 20120200 30,00030,000Rec Center Cooling Tower Enclosure Wall Rebuild 3 20120210 75,00075,000Rec Center Exterior Building Repair 3 20130010 30,00030,000Court Resrfcg-Bass Lake,Fern Hill & Carpenter Park 3 20130020 40,00040,000Cedar Knoll Park Storage & Concession Bldg Remodel 3 20130030 10,00010,000Dakota Park Baseball Field Netting Rplcmnt 1 20130040 60,00060,000Dakota Park Softball Fld #2-Redvlp & fence replace 3 20130050 35,00035,000Park Shelter Buildings Keyless Entry System 5 20130060 110,000110,000Playground Eqpt Repl.-Dakota & Oak Hill Park 1 20130070 65,00065,000Rec Center concession cooling system 1 20130080 30,00030,000Rec Center East Arena Rubber Flooring 3 20130090 20,00020,000Rec Center Gallery Update 3 20130110 55,00055,000Rec Center East Arena repainting 5 20130130 25,00025,000Rec Center West Arena Fire Protection 1 20130140 25,00025,000Rec Center Window Replacement 3 20130150 40,00040,000Westwood Hills NC Brick House Kitchen Replacement 5 20130160 30,00030,000Westwood Hills NC Signage Replacement 5 20130170 20,00020,000Westwood Hills NC Staircase Rplcmnt (N)&Railing 1 20130190 40,00040,000Westwood Hills NC Y-Dock Replacement 3 20140010 25,00025,000Field Renovation Cedar Knoll (Carlson Field) Park 3 20140020 25,00025,000Pennsylvania Park Sun Shelter Replacement 3 20140030 70,00070,000Playground Equip Repl-Jersey & Rainbow Parks 1 20140040 80,00080,000Rec Center Roof Rplc (east arena & main lobby)1 20140050 75,00075,000Rec Center Security Cameras - Interior 5 20140060 325,000325,000Rec Center West Arena Dehumidification 1 20140070 35,00035,000Rec Center West Arena Painting 3 20140080 20,00020,000Westwood Hills Boardwalk Decking Replacement 3 20140090 10,00010,000Westwood Hills Deck Repairs 3 20140110 20,00020,000Westwood Hills NC Parking Lot & Drive Seal Coat 3 20140130 150,000150,000Wolfe Park Pond Dredge and Relandscaping 3 20150010 15,00015,000Basketball Court Resurface-Mkda V,Pen,Wolfe Pks 3 20150020 14,00014,000Court Resurface(tns)-Bass Lk,FernHill & Northside 3 20150030 10,00010,000Kilmer Pond Shoreline Restoration 3 20150040 200,000200,000Louisiana Oaks Park Field Lighing (NW fields)5 20150050 15,00015,000Louisiana Oaks Park Pond Shoreline Restoration 3 20150060 75,00075,000Playground Structure Replacement-Justad & Nelson 1 20150070 25,00025,000Rec Center Parking Lot Resurface/Recoat 3 20150080 1,000,0001,000,000Rec Center West Arena Refrigeration Replacement 1 20150090 50,00050,000Skate Park Equipment Replacement 3 20150110 30,00030,000Trail Recon. along CLR - Quentin Ave to Ridge Dr 1 City Council Meeting of December 20, 2010 (Item No. 8d) Subject: Adoption of 2010 Revised Budget, 2011 Budgets, 2011 Levies, CIP & Utility Rates Page 26 Total2011 2012 2013 2014 2015DepartmentProject# Priority 20150120 5,0005,000Westwood Hills NC Brickhouse Parking Area 5 20150130 30,00030,000Westwood Hills NC Rental House Improvements 3 20150140 6,0006,000Westwood Hills NC Wildflower Trail Restoration 5 20150150 30,00030,000Westwood Hills Window Rplcmnt- Brick & Rental Hses 3 20150160 100,000100,000Wolfe Park Boardwalk Replacement 3 E - XX01 5,065,468540,059 1,824,734 791,654 838,337 1,070,684Annual Equipment Replacement Program 1 10,997,9682,264,559 2,765,734 1,498,654 1,733,337 2,735,684Parks & Recreation Total Public Works 20050500 100,000100,000Street Project - W44th Street 1 20052000 200,000200,000Street Project - TH 100 Reconstruction 1 20072400 500,000500,000Storm Water Project - Lift Sta # 6 (Taft)1 20082500 250,000250,000Traffic Signal Project - W36th St @ Xenwood Ave 5 20100005 320,000320,000Street Project - France Ave Improvements 5 20101000 1,093,8521,093,852Street Project - Local Street Rehab (Area 7)1 20101100 327,000327,000Street Project - MSA Street Rehab 1 20101300 581,700581,700Water Project - WTP #6 Filter Rehabilitation 1 20101500 250,000250,000Water Project - Recoat Reservoir 2 @ WTP#6 1 20110001 294,883294,883Street Mt Proj - Sealcoat Streets (Area 3)1 20110003 82,50082,500Sidewalk Maint. Project - Annual Repairs 1 20110004 62,50062,500Street Maint. Project - Annual C & G Repairs 1 20110006 30,00030,000Storm Water Project - Annual CB Repairs 1 20111000 1,635,6641,635,664Street Project - Local Street Rehab (Area 8)1 20111100 420,000420,000Street Project - MSA Street Rehab 1 20111200 200,000200,000Storm Water Project - Sewer Rehab / Replacement 1 20111400 278,000278,000Water Project - Watermain Replacement 1 20112200 170,500170,500Sanitary Sewer Proj - Mainline Rehab (Area 7)1 20120001 300,081300,081Street Mt Proj - Sealcoat Streets (Area 4)1 20120003 82,50082,500Sidewalk Maint. Project - Annual Repairs 1 20120004 62,50062,500Street Maint. Project - Annual C & G Repairs 1 20120006 30,00030,000Storm Water Project - Annual CB Repairs 1 20120100 22,000,00022,000,000Street Project - Hwy 7 and Louisiana Ave Inter.5 20121000 1,325,1211,325,121Street Project - Local Street Rehab (Area 1)1 20121200 200,000200,000Storm Water Project - Sewer Rehab / Replacement 1 20121300 2,000,0002,000,000Street Project - Wooddale Ave Reconstruction 5 20121301 2,039,0512,039,051Street Project - W36th Street Reconstruction 5 20121302 500,000500,000Traffic Signal Project - Wooddale @ W36th St 5 20121304 275,000275,000Railroad Proj. - Repl RR Xing Signals on W Lake St 1 20121305 250,000250,000Railroad Proj. - Repl RR Xing Signals on Alabama 1 20121400 35,40035,400Water Project - Watermain Replacement 1 20121500 1,110,0001,110,000Water Project - Recoat Elevated Water Tower #3 1 20122200 157,000157,000Sanitary Sewer Proj - Mainline Rehab (Area 8)1 20122300 475,000475,000Sanitary Sewer Proj. - LS #3 and FM Rehab 1 20130001 308,381308,381Street Mt Proj - Sealcoat Streets (Area 5)1 20130003 82,50082,500Sidewalk Maint. Project - Annual Repairs 1 20130004 62,50062,500Street Maint. Project - Annual C & G Repairs 1 20130006 30,00030,000Storm Water Project - Annual CB Repairs 1 20131000 1,348,7441,348,744Street Project - Local Street Rehab (Area 2)1 20131100 515,000515,000Street Project - MSA Street Rehab 1 20131200 200,000200,000Storm Water Project - Sewer Rehab / Replacement 1 20131301 250,000250,000Railroad Proj. - RR Xing Devices on Brookside Ave 1 20131400 260,000260,000Water Project - Watermain Replacement 1 20132200 175,900175,900Sanitary Sewer Proj - Mainline Rehab (Area 1)1 20132300 125,000125,000Sanitary Sewer Proj. - LS #7 Generator Replacement 1 20140001 275,790275,790Street Mt Proj - Sealcoat Streets (Area 6)1 City Council Meeting of December 20, 2010 (Item No. 8d) Subject: Adoption of 2010 Revised Budget, 2011 Budgets, 2011 Levies, CIP & Utility Rates Page 27 Total2011 2012 2013 2014 2015DepartmentProject# Priority 20140003 82,50082,500Sidewalk Maint. Project - Annual Repairs 1 20140004 62,50062,500Street Maint. Project - Annual C & G Repairs 1 20140006 30,00030,000Storm Water Project - Annual CB Repairs 1 20141000 1,148,0001,148,000Street Project - Local Street Rehab (Area 3)1 20141100 385,000385,000Street Project - MSA Street Rehab 1 20141101 500,000500,000Street Project - MSA Street Rehab 1 20141200 200,000200,000Storm Water Project - Sewer Rehab / Replacement 1 20141400 275,100275,100Water Project - Watermain Replacement 1 20142200 150,000150,000Sanitary Sewer Proj - Mainline Rehab (Area 2)1 20142300 60,00060,000Sanitary Sewer Proj. - LS #10 and FM Rehab 1 20150001 243,799243,799Street Mt Proj - Sealcoat Streets (Area 7)1 20150003 82,50082,500Sidewalk Maint. Project - Annual Repairs 1 20150004 37,50037,500Street Maint. Project - Annual C & G Repairs 1 20150006 30,00030,000Storm Water Project - Annual CB Repairs 1 20150100 1,000,0001,000,000Street Project - TH 169 Noise Wall 3 20151100 192,000192,000Street Project - MSA Street Rehab 1 20151200 200,000200,000Storm Water Project - Sewer Rehab / Replacement 1 20151400 150,000150,000Water Project - Watermain Replacement 1 20152200 150,000150,000Sanitary Sewer Proj - Mainline Rehab (Area 3)1 20152300 60,00060,000Sanitary Sewer Proj. - LS #4 & FM Rehab 1 M - XX06 82,23855,391 26,847Traffic Signal Maint. Proj - Repl Control Cabinets 1 M - XX07 52,2189,836 10,130 10,434 10,748 11,070Traffic Signal Maint. Project - Paint Signals 1 M - XX08 50,00010,000 10,000 10,000 10,000 10,000Retaining Wall Maint. Project - Wall Repair 1 M - XX10 649,004123,582 133,381 138,851 128,430 124,760Street Light Project - System Replacement 1 M - XX12 42,96642,966Bus Shelter Project - Shelter Replacements 1 M - XX13 389,000121,000 110,000 158,000PW Parking Lot Rehabilitation Project 1 M - XX14 129,30030,000 31,500 33,075 34,725Street Name Sign Replacement Project 1 TEMP-0011 500,000500,000Street Project - Excelsior Blvd Resurfacing 1 TEMP-0012 300,000300,000Street Project - Excelsior Blvd Resurfacing 1 TEMP-0014 22,010,00022,010,000Sanitary Sewer Project- MCES Golden Valley 1 TEMP-0015 63,025,00012,005,000 12,005,000 12,005,000 12,005,000 15,005,000Sanitary Sewer Proj - MCES Hopkins Interceptor Reh 1 133,540,69215,817,653 65,934,907 16,850,119 16,016,537 18,921,476Public Works Total Technology TRF-001 500,000100,000 100,000 100,000 100,000 100,000On-going Hardware / Telephone Replacement 1 TRF-002 750,000150,000 150,000 150,000 150,000 150,000On-going Software Replacement 1 TRF-003 375,00075,000 75,000 75,000 75,000 75,000On-going Network Replacement 1 TRF-111 593,300593,300Fire / Police 800 MHz Radio Replacements 1 TRF-213 100,000100,000Citywide Technology Study 3 TRF-215 200,000200,000PW Request: Software Consolidation/Replacement 3 TRF-218 50,00050,000***On-going SAN Storage Additions 1 TRF-219 25,00025,000***SAN Addition for Documents Imaging 1 TRF-220 100,000100,000Email Archival and Document Management Solution 3 TRF-221 10,00010,000Point of Sale Equipment Replacements 3 TRF-222 6,0006,000Wireless Equipment for Assessing Field Work 3 TRF-224 35,00035,000ArcGIS Server 3 TRF-306 15,00015,000Fiber Conduit - Excelsior Blvd, La Ave-Hopkins 3 TRF-307 20,00020,000Fiber Conduit - West End Fr. Rd, Gamble, Utica 3 TRF-308 65,00065,000City Hall Production Copiers 3 TRF-309 30,00030,000MSC Copiers (2)3 TRF-310 3,0003,000City Hall Counter Copiers 3 TRF-312 60,00020,000 20,000 20,000Fiber Conduit - TBD 3 TRF-313 7,5002,500 2,500 2,500Fire / Police Wireless Hotspots 3 TRF-314 50,00050,000Police / Rec Center / Nature Center Copiers 3 TRF-315 80,00080,000Police Mobile Replacements 1 City Council Meeting of December 20, 2010 (Item No. 8d) Subject: Adoption of 2010 Revised Budget, 2011 Budgets, 2011 Levies, CIP & Utility Rates Page 28 Total2011 2012 2013 2014 2015DepartmentProject# Priority TRF-316 30,00015,000 15,000***Fire Mobile Replacements 3 TRF-321 250,000250,000Financial / HR/ Payroll App Replacement 1 TRF-322 210,000210,000Utility Billing App Replacement 1 TRF-323 138,12527,625 27,625 27,625 27,625 27,625Police CAD/RMS/Mobile App Replacement 1 TRF-342 20,00010,000 10,000EOC Equipment 3 TRF-345 30,00015,000 15,000Council Chambers Laptops 3 TRF-346 105,000105,000Voting Machines 1 TRF-347 40,00020,000 20,000Basic Windows 7 / Office 2010 Training 3 TRF-348 55,00055,000Nature Center Surveillance Cameras 3 TRF-349 5,0005,000Network Nature Center Picnic Building 3 TRF-350 2,0002,000Property Maintenance Field Laptop / Printer 3 TRF-352 8,0008,000Square Rigger Handhelds 1 TRF-353 14,00014,000UPS Enhancements 3 TRF-355 75,00015,000 15,000 15,000 15,000 15,000Reverse 911 3 TRF-356 20,00020,000Oce Scanner / Copier 3 TRF-357 21,00021,000Engineering Total Station 1 TRF-400 100,000100,000Network Switches 1 4,197,925730,125 786,125 930,125 1,133,925 617,625Technology Total GRAND TOTAL 168,772,23835,133,926 70,776,365 20,131,900 20,051,962 22,678,085 City Council Meeting of December 20, 2010 (Item No. 8d) Subject: Adoption of 2010 Revised Budget, 2011 Budgets, 2011 Levies, CIP & Utility Rates Page 29 Meeting Date: December 20, 2010 Agenda Item #: 8e Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: 2011 Employee Compensation. RECOMMENDED ACTION: Motion to adopt a Resolution confirming a 2.25% general increase for non-union employees effective 12/31/10 and a 0% increase for 2011; continuing participation in the Volunteer Firefighter Benefit Program; and increasing performance program pay by 2.25% for Paid-On- Call Firefighters for 2011. POLICY CONSIDERATION: Does Council wish to confirm the recommended employee compensation proposal? BACKGROUND: This report summarizes employee compensation for 2011. A. Non-Union Employee Compensation – 2.25% General Increase Effective 12/31/10 Our compensation plan, which was adopted in 1997, allows the City Manager to approve the standard adjustment based on information such as market value data, the CPI, and the general financial condition of the City. A review of our positions was conducted by consultant George Gmach of Trusight, Inc (formerly Employer’s Association, Inc.). Mr. Gmach reviewed the salaries of St. Louis Park in comparison with metro area cities (suburbs) with populations over 25,000 but less than 90,000 as required in our compensation plan. After review of the market, our consultant determined that pay maximums for St. Louis Park would remain competitive if increased by 2.25%. When setting compensation for staff, we also look internally at increases approved for our other employee groups. For 2010 and 2011, it is recommended that non-union follow the pattern of wage increases that our Police Officer and Sergeant groups have settled for in contract negotiations: January 1, 2010 1% December 31, 2010 2.25% January 1, 2011 0% Our Local 49 Maintenance, Dispatcher, and Fire union groups have open contracts for 2011. The increase for non-union employees will be applied in accordance with our compensation plan. In our plan, after successful completion of probation (typically six months), a position receives up to double the standard increase to progress through the pay range until they reach the payline (maximum). Positions at the maximum will receive the standard adjustment of 2.25%. City Council Meeting of December 20, 2010 (Item No. 8e) Subject: 2011 Employee Compensation Page 2 B. Salary Cap and City Manager Salary The recommended salary for the City Manager will be provided in early 2011, after the completion of his annual performance evaluation. At this time, there is no change recommended to the City Manager’s salary. C. Volunteer Firefighter Benefit Program Our paid-on-call firefighters receive a life insurance benefit through the Volunteer Firefighters’ Benefit Association of Minnesota. Our personnel policy requires Council approval for conditions of employment relating to performance bonuses or insurance. This program is very affordable. The cost for the total program is $247 for a July 1, 2010 renewal and covers one career firefighter eligible (due to a continuation clause) and our paid-on-call firefighters. It covers life insurance up to $20,000 and also provides some disability coverage. This program is a typical benefit offered to other paid-on-call firefighters in municipalities in the metro area. Since paid-on-call firefighters are not eligible for the benefits of other employees, it is important that we provide some type of life insurance coverage for this group. We recommend Council approves continued participation in this program consistent with Resolution 05-150. D. Paid-on-Call Firefighter Performance Program – 2.25% Increase Our Paid-on-Call Firefighter Performance Program system was established in 1996. The Performance Program system was designed for our paid-on-call firefighters to be competitive with our volunteer neighbors, and alleviate the need of a Fire Department Relief Association. The Performance Program is reviewed annually. The Fire Chief has recommended a 2.25% increase to this program, effective January 1, 2011. (Payment is typically made at year end based on performance as approved by the Fire Chief.) General comment: Copies of the Compensation Plan are available from the City Clerk. FINANCIAL OR BUDGET CONSIDERATION: The increases for groups listed above are included in the 2011 budget along with other (step) increases for other contract employees. VISION CONSIDERATION: Not directly applicable. Attachments: Resolution Prepared by: Ali Fosse, HR Coordinator Reviewed by: Nancy Deno Gohman, Deputy City Manager/HR Director Approved by: Tom Harmening, City Manager City Council Meeting of December 20, 2010 (Item No. 8e) Subject: 2011 Employee Compensation Page 3 RESOLUTION NO. 10-____ RESOLUTION CONFIRMING COMPENSATION FOR NON-UNION EMPLOYEES; CONTINUING PARTICIPATION IN THE VOLUNTEER FIREFIGHTER BENEFIT PROGRAM, AND CONTINUING PERFORMANCE PROGRAM PAY FOR PAID-ON-CALL FIREFIGHTERS WHEREAS, the City Council established and approved, by Resolution, the Position Classification and Compensation Plan for the City of St. Louis Park, and Section VIII-C of such Plan directs the City Manager to approve the standard adjustment to the Plan; and WHEREAS, the City Council wishes to adopt policies for City employees and has conferred upon the City Manager the power to establish and administer additional administrative policies and rules as may be appropriate for the employment practices of the City; and NOW, THEREFORE BE IT RESOLVED that the City Council of the City of St. Louis Park: A. Confirms the City Manager’s decision to implement a standard adjustment of 2.25%, effective December 31, 2010 for non-union employees in accordance with the Position Classification and Compensation Plan. B. Confirms the City Manager’s decision to implement a 0% increase for non-union employees on January 1, 2011. C. Confirms no increase to the salary of the City Manager at this time. Car allowance remains unchanged per contract and is converted to PTO each month in accordance with Section 9.13 of the Personnel Manual. D. Approves continuation of participation in the Volunteer Firefighters’ Benefit Association of MN Benefit Program for 2011, consistent with Resolution 05-150. E. Approves continuation of the Paid-on-Call Firefighters 2011 Performance Program with a 2.25% increase, effective January 1, 2011. Performance Program: Paid-on-Call Firefighters For 0 – 23 months of service, paid-on-call firefighters are eligible to receive a monthly amount. After 23 months, they are eligible to receive an annual amount. This amount may be pro-rated for actual number of months worked. All amounts after the 23 month timeframe show annual amounts as follows: City Council Meeting of December 20, 2010 (Item No. 8e) Subject: 2011 Employee Compensation Page 4 Reviewed for Administration: Adopted by the City Council December 20, 2010 City Manager Mayor Attest: City Clerk Years of Service 2011 Annual Up to 23 Months of Service $144 per month 2 $1,883 3 $2,023 4 $2,176 5 $2,315 6 $2,454 7 $2,594 8 $2,747 9 $2,888 10 $3,026 11 $3,181 12 $3,333 13 $3,473 14 $3,626 15 $3,765 16 $3,906 17 $4,045 18 $4,198 19 $4,337 20 $4,478