THIEF RIVER FALLS CITY COUNCIL AGENDA TUESDAY-MAY 19, 2015

Transcription

1 THIEF RIVER FALLS CITY COUNCIL AGENDA TUESDAY-MAY 19, 2015 COUNCIL CHAMBERS CITY HALL RD STREET EAST 5:30PM 1. CALL TO ORDER 1.5 PLEDGE OF ALLEGIANCE 2. ROLL CALL 3. PUBLIC FORUM- Individuals may address the City Council about any item not included on the regular agenda. A maximum of 5 minutes is allotted for the public forum. Speakers are requested to come to the microphone, state their name and address for the record, and limit their remarks to jive minutes. The City Council will not take official action on items discussed at this time, with the exception of refe"al to staff or a committee, board or commission for a future report. 4. PRESENTATIONS/PROCLAMATIONS/PUBLIC INFORMATION ANNOUNCEMENTS 5. APPROVE AGENDA- Council members may add items to the agenda for discussion purposes or staff direction. The Council will not normally take official action on items added to the agenda. 6. CONSENT AGENDA- These items are considered routine in nature and are approved with one motion without discussion/debate. The Mayor will ask if any Council member wishes to remove an item and place it on the regular agenda for discussion and consideration. If no items are to be removed, the Mayor will then ask for a mation to approve the Consent Agenda Approval of May 5, 2015 Council Proceedings and May 12, 2015 Hearing Proceedings (page 3-11) 6.02 Approve City of Thief River Falls Bills and Disbursements (see attachment) 6.03 Resolution Approving Progression Raise for Ashley Hejlik, Parks & Recreation Secretary (page 12-13) 6.04 Resolution Approving Progression Raise for William Puppe, Public Works Maintenance (page 14-15) 6.05 Resolution Approving Progression Raise for Nicholas Trudeau, Water Systems Foreman (page ) 6.06 Approval of Temporary Intoxicating Liquor License to TRF Chamber of Commerce (page 18-19) 6.07 Approval of Sale of Confiscated Firearms through a Sealed Bid Process to Local FFL Dealers (page 20-21) 6.08 Approval offive Year and Annual Public Housing Authority Plan ofthe Thief River Falls HRA (page 22-33)

2 6.09 Approval to NW MN Multi-County HRA to Issue Refunding Bonds and Authorize the Execution and Delivery of an Amendment to Option to Purchase (page 34-43) 6.10 Approval to Appoint Barry Froiland as Director and Dale Narlock as Advisor to the Northern Municipal Power Agency Board of Directors (page 44-45) 6.11 Approval of 2014 Budget Adjustments (page 46-49) 6.12 Approval of Power Plant Operator/Electronic Technician Evaluation by Fox Lawson and Authorizing Proceeding with Filling Position (page 50-51) 7. NEW BUSINESS 7.01 Approval of Low Bid of $2,991, for the base bid, Alternate 1 and Alternate 2 from Davidson Construction for the 2015 Street & Utilities Improvement Project (page 52-54) 7.02 Approval of Development Agreement for Tax Increment Financing District 1-11 (page 55-86) 7.03 Fire Hall Discussion 8. COUNCIL BOARDS AND COMMISSIONS REPORTS -Not all boards or commissions will have met prior to the Council meeting. These reports are intended to keep the other council members informed of actions or proposed actions taken by these boards and commissions. Only those with something to report would be on the agenda. 9. UPCOMING MEETINGS 9.01 City Council Meeting- June 2, 2015 at 5:30p.m Utilities Committee Meeting- June 8 1 h at 4:30p.m National Conference & Public Power Expo - June S-lOth in Minneapolis 9.04 Parks & Recreation/Public Safety Committee Meeting - June 9th at 4:30p.m Public Works Committee Meeting- June 1 OL 11 at 5:00p.m Administrative Services Committee Meeting - June 1 lth at4:30 p.m City Council Meeting- June 16 1 h at 5:30p.m LMC Annual Conference- June 24th h in Duluth 10. INFORMATIONAL ITEMS Investment Summary dated 4/30115 (page 87) 11. ADJOURNMENT City of Thief River Falls complies with the ADA. Individuals with disabilities requiring special aids should contact the City Administrator, 405 Third Street East, Thief River Falls, MN 5670 I, , 48 hours prior to the scheduled meeting.

3 COUNCIL PROCEEDINGS MAY 5, 2015 #6.01 The City Council ofthiefriver Falls, Minnesota, met in regular session at 5:30p.m. on May 5, 2015 in the Council Chambers of City Hall. The following Councilmembers were present: Prudhomme, Holmer, Hagen, Howe, Narverud, Schmalz, Sollom and Brown. No Councilmembers were absent. Holmer chaired the meeting. MINNESOTA INVESTMENT FUND PUBLIC HEARING A public hearing was duly advertised pursuant to due call and notice. Mayor Holmer called the public hearing to order and City Administrator Kruse stated the purpose of the hearing was to hear public comments regarding the City's Application to the Minnesota Investment Fund for the expansion of Arctic Cat, Inc. No one presented any comments and no written comments were received. Hearing was adjourned at 5:40p.m. and the City Council meeting continued. RESOLUTION NO : APPROVAL OF MINNESOTA INVESTMENT FUND Following the public hearing, Councilmember Sollom introduced Resolution No , being seconded by Councilmember Schmalz, that: BE IT RESOLVED that the City of Thief River Falls act as the legal sponsor for the project contained in the Minnesota Investment Fund Application to be submitted on or about May 6, 2015 and that Mayor and City Administrator are hereby authorized to apply to the Department of Employment and Economic Development for funding of this project on behalf of Arctic Cat, Inc. BE IT FURTHER RESOLVED that the City ofthiefriver Falls has the legal authority to apply for financial assistance, and the institutional, managerial, and financial capability to administer the proposed project. BE IT FURTHER RESOLVED that the City of Thief River Falls has not violated any Federal, State, or local laws pertaining to fraud, bribery, kickbacks, collusion, conflict of interest or other unlawful or corrupt practice. BE IT FURTHER RESOLVED that upon approval of its application by the State, the City of Thief River Falls may enter into a Grant Contract with the State of Minnesota for the approved project, and that the City of Thief River Falls certifies that it will comply with all applicable laws, statutes, regulations and rules as stated in the Grant Contract and described in the Project Compliance Certification of the Application. AS APPLICABLE, BE IT FURTHER RESOLVED that the City of Thief River Falls has obtained credit reports and credit information on Arctic Cat, Inc. Upon review by the City of Thief River Falls and City Attorney no adverse findings or concerns regarding, but not limited to, tax liens, judgments, court actions, and filings with state, federal and other regu- 3

4 Council Proceedings May 5, 2015 Page 2 of6 latory agencies were identified. Failure to disclose any such adverse information could result in revocation or other legal action. NOW, THEREFORE BE IT RESOLVED that the Mayor and City Administrator, or their successors in office, are hereby authorized to execute the Grant Contract and amendments, thereto, as are necessary to implement the project on behalf of the City of Thief River Falls. On vote being taken, the resolution was unanimously passed. PRESENTATIONS/PROCLAMATIONS/PUBLIC INFORMATION ANNOUNCEMENTS M Long Term Care Week Proclamation Lifesaving A wards - Sgt. Williams, Officer Roff and Officer Bruggeman At approximately 2130 hours on 04/24/2015, dispatchers received a 911 call of an adult male with a history of heart problems that had collapsed and was unresponsive. The first officer to arrive at the scene was Officer Bruggeman, and he found the victim face-down, unresponsive, and without a pulse. Officer Bruggeman rolled the victim over, and immediately began CPR. Officer Roff and Sgt. Williams arrived shortly after, and lent assistance until the ambulance crewmen arrived. EMS Paramedics delivered two defibrillator shocks to the victim which restored a regular heart rhythm. Officers and Paramedics continued to work together to assist the victim, and transported him to the hospital. The subject is in the process of recovery. The actions taken by our officers and EMS personnel were instrumental in saving this citizens life, and therefore we are awarding the Thief River Police Department's Life Saving Award to Officers Bruggeman, Roff, and Sgt. Williams. APPROVAL OF AGENDA Councilmember Howe motioned, being seconded by Councilmember Sollom, to approve the agenda with the addition of advertising for a Line Worker. On vote being taken, the motion was unanimously approved. RESOLUTION NO : APPROVAL OF COUNCIL PROCEEDINGS Presented as part of the Consent Agenda, Councilmember Schmalz introduced Resolution No , being seconded by Councilmember Narverud, that: RESOLVED, by the City Council, to approve April 21, 2015 Council Proceedings. On vote being taken, the motion was unanimously approved. RESOLUTION NO : APPROVAL OF PAYMENT OF BILLS Presented as part ofthe Consent Agenda, Councilmember Schmalz introduced Resolution No , being seconded by Councilmember Narverud, that: 4

5 Council Proceedings May 5, 2015 Page 3 of6 RESOLVED, by the City Council, to authorize payment of bills and disbursements in the total amount of$1,691, A printout of the approved payments and disbursements is attached hereto and made a part hereof. On vote being taken, the motion was unanimously approved. RESOLUTION NO : ADOPTING ORDINANCE NO. 77, 3RD SERIES, OF THE CITY OF THIEF RIVER FALLS, MINNESOTA, AMENDING CITY CODE CHAPTER 152 ENTITLED "ZONING CODE" BY AMENDING THE CITY ZONING DISTRICTS MAP, AND BY ADOPTING BY REFERENCE CITY CODE CHAPTER 10 AND SECTION , WHICH, AMONG OTHER THINGS, CONTAIN PENALTY PROVISIONS Councilmember Brown moved, being seconded by Councilmember Hagen to have the second reading of a proposed ordinance. Motion carried unanimously. City Attorney lhle conducted the second reading of the proposed ordinance. Following the reading, Councilmember Brown introduced Resolution No , being seconded by Councilmember Prudhomme, that: The City Council ofthiefriver Falls Ordains: Section 1. The City Zoning Districts Map is hereby amended by changing the zoning designation of the following described real property from General Business District (C-2) to Multi-Family Residential District (R-4): Lot Four (4) ofblock One (1) of Oakland Park Fourth Addition to ThiefRiver Falls, Minnesota. Section 2. City Code Chapter 10 entitled "General Provisions" and Section entitled "Violation" are hereby adopted in their entirety, by reference, as though repeated verbatim herein. Section 3. This ordinance shall be in force and effect from and after its passage, approval, and publication. On vote being taken, the motion was unanimously approved. RESOLUTION NO : APPROVAL OF A CONDITIONAL USE PERMIT FOR LOT 4, BLOCK 1 OAKLAND PARK FOURTH ADDITION A Planning Commission and Public Works recommendation was presented. Following discussion, Narverud introduced Resolution No , being seconded by Councilmember Hagen, that: 5

6 Council Proceedings May 5, 2015 Page 4 of6 WHEREAS, pursuant to proper notice, the Planning Commission conducted a public hearing on April14, 2015, for a Conditional Use Permit request for Lot 4, Block 1, Oakland Park Fourth Addition; and WHEREAS, a developer, Mark Weston, has entered into a purchase agreement with Midwest Minnesota Development Corporation (MMCDC) for Lot 4, Block 1, Oakland Park Fourth Addition for the construction of a 30 to 36 unit upscale market rate apartment building with heated underground parking. The purchase is contingent on re-zoning. This project will add 30 to 36 new market rate workforce housing units in Thief River Falls, with construction scheduled to begin in 2015; and THEREFORE, BE IT RESOLVED, by the City Council, to accept the Public Works Committee and Planning Commission's recommendation and approve a Conditional Use Permit in Lot 4, Block 1, Oakland Park Fourth Addition to allow a structure in a residential zone above 3 5 feet. On vote being taken, the motion was unanimously approved. RESCIND TRAVEL RESTRICTIONS On April 21 5 \ a motion was made rather hastily with not a lot of forethought on the effects of a major change in travel policy requiring all travel to be approved by Committees. The Administrative Committee met on April 28 reviewing the travel budgets of all the departments and pending travel. It was determined there were no issues with what has been budgeted or any pending travel, training and conference. The Committee stated employees should follow protocols in place prior to the April 21st motion and asked that this be placed on the upcoming Committee of the Whole for further discussion. The Committee of the Whole reviewed budgeted travel, training and conference and pending travel and recommended it to continue as previously managed. With the above action, the Council acknowledges that management is doing a good job of managing travel, training and conference; it is an approved budgeted item, which the City Council does not want to micromanage; that staff will in the future provide more information to the Committees on travel, training and conference. Motion by Prudhomme, seconded by Brown to rescind the April21, 2015 Motion made by Councilmember Prudhomme and seconded by Councilmember Hagen that all employee travel and training be approved by committee prior to and to have the Park and Recreation Director's Las Vegas conference reviewed by the Park and Recreation/Public Safety Committee. Motion carried unanimously. PARK AND RECREATION/PUBLIC SAFETY COMMITTEE AND UTILITIES COMMITTEE MEETING DATE CHANGE 6

7 Council Proceedings May 5, 2015 Page 5 of6 Motion by Sollom, seconded by Brown to have the May Park and Recreation/Public Safety Committee meeting changed to 4:30p.m. on Monday, May 11,2015 and the Utilities Committee meeting at 4:30p.m. on Monday, May 18th in room 101. Motion carried unanimously. RESOLUTION NO : APPROVING ADVERTISING FOR AN ELECTRIC LINE WORKER Dale Narlock, Electric Superintendent, presented a request to begin the process to fill a position of Lineworker. Following discussion, Councilmember Brown introduced Resolution No , being seconded by Councilmember Schmalz, that: WHEREAS, the Electric Department received notice of the retirement of Neal Sandahl, Electric Construction worker. WHEREAS, the Utilities Committee recommends replacing the Construction Worker position with an Electric Lineworker position. THEREFORE, BE IT RESOLVED, by the City Council, to start the process of advertising for the position of Lineworker, through the Teamster #320 internal transfer process, and if no qualified applicants, then advertise to the public. On vote being taken, the motion was unanimously approved COUNCIL BOARDS AND COMMISSIONS REPORTS- None UPCOMING MEETINGS/EVENTS Airport Zoning Outreach Meeting- May 11th, Joint Use Facility Building at 1:00 p.m. (page 31-35) Park & Recreation/Public Safety Committee Meeting Monday, May 11th at 4:30p.m. Tax Abatement Hearing- Tuesday, May lih at 5:30p.m. at the Pennington County Joint Use Facility Public Works Committee Meeting- Wednesday, May 13th at 5:00p.m. Administrative Services Committee Meeting- Thursday, May 14th at 4:30p.m. Utilities Committee Meeting- Monday, May 18th at 4:30p.m. National Conference & Public Power Expo -June 5-l oth in Minneapolis LMC Annual Conference- June 24th -26th in Duluth (Newly Elected Training) INFORMATIONAL ITEMS Community Leader Luncheon with the Thief River Falls Ministerial Association- May 7th, 11 :30 a.m. at River of Life Church ADJOURNMENT 7

8 Council Proceedings May 5, 2015 Page 6 of6 There being no further discussion, Councilmember Brown moved, being seconded by Councilmember Prudhomme to adjourn at 6:00p.m. to the 5:30p.m. Tuesday, May 12,2015 at the Pennington County Multi-Use Operations Center (Highway Department Building), th Avenue NE, Thief River Falls, MN for the purpose to conduct a public hearing on Arctic Cat and to consider an Abatement Resolution. On vote being taken, the Chair declared the motion unanimously carried and the meeting adjourned. Brian D. Holmer, Mayor Attest: Larry Kruse, City Administrator 8

9 HEARING AND ADJOURNED COUNCIL PROCEEDINGS MAY 12,2015 Pursuant to due call and notice, the City Council of Thief River Falls, Minnesota, conducted a hearing at 5:30p.m. on May 12, 2015 in the Pennington County Multi-Use Operations Center located at th Avenue NE, Thief River Falls. The following Councilmembers were present: Prudhomme, Holmer, Hagen, Howe, Narverud, Schmalz, Sollom and Brown. No Councilmembers were absent. Holmer chaired the hearing. Also in attendance at the hearing were the Pennington County Commissioners, and School District #564 Board members. A joint public hearing of the City Council, Pennington County Commissioners and the Board of Education was duly advertised pursuant to due call and notice. Mayor Holmer called the public hearing to order at 5:30p.m. and City Attorney Paul Ihle stated the purpose ofthe hearing. Dennis Buddy, Plant Manager of Arctic Cat, briefly outlining Arctic Cat's proposed improvements and noting appreciation of consideration of the tax abatement. Mayor Holmer then noted that no written comments have been received and asked if there were any persons present at the hearing that wished to express any comments on the proposed abatement. There were no comments from the audience. There being no further comments, Mayor Holmer adjourned the hearing at 5:45p.m. Councilmember Sollom motion, being seconded by Councilmember Hagen, to reopen the Council meeting. Motion was unanimously carried and the Council meeting opened. RESOLUTION NO : RESOLUTION APPROVING PROPERTY TAX ABATEMENTS FOR THE ARCTIC CAT, INC. EXPANSION PROJECT Councilmember Hagen introduced Resolution No , being seconded by Councilmember Prudhomme, that: BE IT RESOLVED by the City Council (the "Council") of the City of Thief River Falls, Minnesota (the "City), as follows: 1. Recitals. (a) Arctic Cat, Inc. (the "Company") has requested that the City of Thief River Falls (the "City"), the County of Pennington (the "County") and the School Board (the "Board") for Independent School District No. 564 (the "District) abate their respective portions of additional prospective property taxes to be generated on Tax Parcel No in the City (the "Property"), owned by the Company, resulting from the construction on the Property of an expansion to the Company's existing manufacturing facility located adjacent thereto (the "Project"), all as further described below. The Project expansion is estimated to be in the range of27,000 to 70,000 square feet. (b) The requested property tax abatement (the "Abatement") would be for a maximum of 15 years, specifically, with respect to property taxes payable in 2018 through The portion of the Abatement attributable to the City is estimated to not exceed $690,000, with a present value of $480,000. 9

10 Council Proceedings May 12, 2015 Page 2 of3 (c) Property tax abatements, such as the Abatement, are authorized under Minnesota Statutes, Sections through (the "Abatement Law"). (d) On the date hereof, in accordance with the Abatement Law, a public hearing was held on the question of the Abatement, jointly on behalf ofthe City, the County and the District, and, as required by the Abatement Law, notice of said hearing was published at least 10 days but not more than 30 days prior to the hearing. 2. Findings. The Council hereby makes the following findings: (i) The Council expects the benefits of the Abatement to the District to at least be equal to the costs thereof. (ii) Granting the Abatement is in the public interest because it will increase the tax base of the City and other affected taxing jurisdictions, help retain and expand commercial and industrial enterprise in the area, and provide new employment opportunities. (iii) The Council expects the public benefits described in (b) above to be derived from the Abatement. (iv) The Property is not located in a tax increment financing district. ii) Terms of Abatement. The Abatement is hereby approved. The terms of the abatement are as follows: (i) The Abatement shall be for a maximum of 15 years and shall apply to the taxes payable in the years 2018 through 2032, inclusive. (ii) The Abatement shall be subject to final approval by the District, the City and the County of a definitive Development Agreement. (c) The Abatement.shall be for 100% of the City's share ofthe increase in ad valorem property taxes generated by the Property which are attributable to the Project. The increase in property taxes will be over the 2015 base tax capacity of$61,794. (d) The Abatement may not be modified or changed during the term set forth in (a) above, except with the prior written consent of the District, the City and the County. (e) The Abatement shall be subject to all the terms and limitations ofthe Abatement Law. (f) In order to be entitled to the Abatement, the Company shall not be in default within the County, the City or the District on any of its payment obligations respecting any taxes, assessments, utility charges or other governmental impositions. (g) All terms and conditions of the Abatement will be subject to fmal approval ofthe Development Agreement between the relevant taxing jurisdictions and the Company. (h) In any year, the total amount of property taxes to be abated by the City by this and any other applicable resolutions shall not exceed the greater often percent (10%) of the current levy, or $200,000, whichever is greater. (i) In no event shall the combined aggregate abatement assistance, if all requested taxing jurisdictions participate, and if the Project is constructed at the maximum size envisioned, exceed $2,200,000 over the 15 year term. 10

11 Council Proceedings May 12,2015 Page 3 of3 On vote being taken, the resolution was unanimously approved. The City Council at this time took a recess to allow for the Pennington County Commissioners and School District to take their respective actions on the Arctic Cat, Inc. request. RESOLUTION NO : APPROVE BREEZY DRIVE IMPROVEMENTS AS AN ALTERNATE BID Following a presentation by Mark Borseth, Community Services Director, Councilmember Hagen moved, being seconded by Councilmember Brown, that: WHEREAS, pursuant to Resolution No , the City of Thief River Falls has ordered the improvements outlined in the 2015 Street & Utilities Improvements Project; and, WHEREAS, the project was advertised with a bid letting date ofmay 13, 2015 at 2:00 p.m.; and, WHEREAS, the developer, Mr. John Kertz, has requested the Breezy Drive Improvements be bid as an alternate to know what the costs may be before proceeding. THEREFORE, BE IT RESOLVED, by the City Council, that the Breezy Drive Improvements be bid as an alternate. On vote being taken, the resolution was unanimously approved. ADJOURNMENT There being no further discussion, Councilmember Howe moved, being seconded by Councilmember Brown to adjourn at 5:50p.m. until Tuesday May 19,2015. On vote being taken, the Chair declared the motion unanimously carried and the meeting adjourned. Brian D. Holmer, Mayor Attest: Larry Kruse, City Administrator 11

12 City of Thief River Falls #6.03 Parks and Recreation Department Ralph Engelstad Arena PHONE: Brooks Avenue. P.O. Box 528 FAX: Thief River Falls, MN Request for Council Action May 20, 2015 SUBJECT: Progression Raise for Ashley Hejlik, Parks & Recreation Secretary RECOMMENDATION: It is respectfully requested that the City Council accept the Parks and Recreation Committee's recommendation to approve a progression raise for Ashley Hejlik, Parks and Recreation Secretary, effective May 16, Ms. Hejlik's salary shall progress to Step 5 (top) of the Parks and Recreation salary schedule for a new salary of $24.24 per hour. BACKGROUND: Ms. Halbasch has progressed, with Council approval, through the salary schedule as recommended by Committee. Financial Considerations: This is $2.41 per hour increase and is a budgeted item. Legal Considerations: None Department/Responsible Person: Joe Amundson, Parks & Recreation Director Reviewed by: 12

13 CITY OF THIEF RIVER FALLS PROPOSED RESOLUTION 1 # RESOLUTION NO. : RESOLUTION APPROVING PROGRESSION RAISE FOR ASHLEY HEJLIK, PARKS AND RECREATION SECRETARY Presented as part of the Consent Agenda, Councilmember introduced Resolution No., being seconded by Councilmember, that: RESOLVED, by the City Council, accept the Parks and Recreation Committee's recommendation to approve a progression raise for Ashley Hejlik, Parks and Recreation Secretary, effective May 16,2015. Ms. Hejlik' s salary shall progress to Step 5 (top) ofthe Parks and Recreation salary schedule for a new salary of$24.24 per hour. Presented at the May 19, 2015 Council Meeting Introduced by: Seconded by: _ Roll Call (if required): _Holmer_Howe Sollom _Hagen _Brown _Prudhomme _Schmalz _Narverud Notes: _ 13

14 City of Thief River falls #6.04 Streets/Sanitation Supervisor 1100 Horace Avenue North PO Box 528 Thief River Falls MN PHONE: FAX: REQUEST FOR COUNCIL ACTION DATE: May 19,2015 SUBJECT: Progression Raise for William Puppe, Public Works Maintenance (Street/Sanitation) RECOMMENDATION: It is respectfully requested that the Council consider the following: Motion to: Approve the Public Works Committee recommendation to grant William Poppe, Public Works Maintenance (Street/Sanitation) a progression raise to Step 5 of5 of the Public Works Maintenance Street/Sanitation salary schedule. Mr. Puppe's wage shall increase to $24.24 per hour from $21.83 per hour, retroactive to March 11,2015. BACKGROUND: William Puppe was hired as a full-time Public Works Maintenance (Street/Sanitation) at Step 3 of the salary schedule, effective March 11, 2013, by Resolution No , followed by Council action for progression to Step 4 in March of2014. He is now eligible for the Step 5 progression. FINANCIAL CONSIDERATIONS: Approval ofthe progression raise will result in an hourly increase from $21.83 to $24.24 and is a budgeted progression. LEGAL CONSIDERATIONS: None. DEPARTMENTIRESPONSffiLE PERSON: Randy Konickson, Streets/Sanitation Supervisor REVIEWED BY: 14

15 CITY OF THIEF RIVER FALLS PROPOSED RESOLUTION 1 # RESOLUTION NO. : RESOLUTION APPROVING PROGRESSION RAISE FOR WILLIAM PUPPE, PUBLIC WORKS MAINTENANCE (STREET/SANITATION) Presented as part of the Consent Agenda, Councilmember introduced Resolution No., being seconded by Councilmember, that: RESOLVED, by the City Council, to approve the Public Works Committee recommendation to grant William Puppe, Public Works Maintenance (Street/Sanitation) a progression raise to Step 5 of 5 of the Public Works Maintenance Street/Sanitation salary schedule. Mr. Puppe's wage shall increase to $24.24 per hour from $21.83 per hour, retroactive to March 11, Presented at the May 19, 2015 Council Meeting Introduced by: _ Seconded by: Roll Call (if required): _Holmer_Howe Sollom _Hagen _Brown _Prudhomme _Schmalz _Narverud Notes:

16 City of Thief River falls 1 #s.os Third Street East PO Box 528 ThiefRiver Falls MN Request for Council Action DATE: May 19, 2015 SUBJECT: Nicholas Trudeau, Water Systems Foreman Progression Raise RECOMMENDATION: It is respectfully requested the Council consider the following: Motion to: Approve a progression raise for Nicholas Trudeau, Water Systems Forman, to Step 3d of the Water Systems Foreman salary schedule, for a new salary of$27.27 per hour effective April16, BACKGROUND: Mr. Trudeau was hired as the Water Systems Foreman by Resolution No Mr. Trudeau is eligible for progression to Step 3d. Mr. Trudeau has obtained the required Water and Wastewater Certifications for progression to the top step and has the required time in the previous steps. FINANCIAL CONSIDERATIONS: Mr. Trudeau's current wage is $26.45 per hourwith this progression; his wage will be $27.27, a $.82 per hour increase. This is a budgeted progression raise. LEGAL CONSIDERATION: None. DEPARTMENT/RESPONSIBLE PERSON: Wayne Johnson, Water Systems REVIEWED BY: 16

17 CITY OF THIEF RIVER FALLS PROPOSED RESOLUTION 1 #s.os 1 RESOLUTION NO.: RESOLUTION APPROVING PROGRESSION RAISE FOR NICHOLAS TRUDEAU, WATER SYSTEMS FOREMAN Presented as part of the Consent Agenda, Councilmember introduced Resolution No., being seconded by Councilmember, that: RESOLVED, by the City Council, approve a progression raise for Nicholas Trudeau, Water Systems Forman, to Step 3d of the Water Systems Foreman salary schedule, for a new salary of$27.27 per hour effective April16, Presented at the May 19, 2015 Council Meeting Introduced by: _ Seconded by: Roll Call (if required): _Holmer_Howe Soli om _Hagen _Brown _Prudhomme _Schmalz _Narverud Notes:

18 City of Thief River falls 1 # Third Street East PO Box 528 Thief River Falls MN PHONE: FAX: jnelson@citytrf.net REQUEST FOR COUNCIL ACTION DATE: May 11,2015 SUBJECT: Chamber of Commerce Temporary Liquor License RECOMMENDATION: It is respectfully requested the Council consider the following: MOTION TO: to accept a Parks & Recreation/Public Safety Committee recommendation to approve a Temporary Intoxicating Liquor License effective July 31 -August 1, 2015 for Riverfest. BACKGROUND: The ThiefRiver Falls Chamber of Commerce applies for a temporary liquor license each year for Riverfest. KEY ISSUES: None FINANCIAL CONSIDERATION: The license fee is $35 per day. LEGAL CONSIDERATION: DEPARTMENT /RESPONSIBLE PERSON: Jennifer Nelson, Administrative Services REVIEWED BY: 18

19 CITY OF THIEF RIVER FALLS PROPOSED RESOLUTION 1 # RESOLUTION NO.: APPROVAL OF TEMPORARY INTOXICATING LIQUOR LICENSE TO TRF CHAMBER OF COMMERCE Presented as part ofthe Consent Agenda, Councilmember introduced Resolution No.. being seconded by Councilmember that: RESOLVED, by the City Council, to accept to accept a Parks & Recreation/Public Safety Committee recommendation to approve a Temporary Intoxicating Liquor License effective July 31 -August 1, 2015 for Riverfest at Hartz Park, Riverside Avenue. Presented at the May 19, 2015 Council Meeting Introduced by: Seconded by: Roll Call (if required): _Holmer_Howe Sollom _Hagen _Brown _Prudhomme _ Schmalz _ Narverud Notes: 19

20 City of Thief River falls #6.07 Dick Wittenberg, Chief of Police Thief River Falls Police Department 102 I ~ St W PO Box 413 Thief River Falls MN PHONE: FAX: dwittenberg.trfpd@citytrf.net Request for Council Action DATE: April27, 2015 SUBJECT: Approve the sale of confiscated firearms as a lot, through a sealed bid process from local FFL dealers. RECOMMENDATION: It is respectfully requested the Council consider the following: MOTION TO: Approve and authorize the sale of confiscated firearms through a sealed bid process to local FFL dealers and retain the funds for use in the Police Department's firearms program. BACKGROUND: MN State Patrol disposes of confiscated firearms in a sealed bid process to FFL dealers, and retains the funds for use in their firearms program. In the process of transferring evidence from the old evidence room to our new facility, we have numerous confiscated firearms that we need to dispose of. The value of these firearms would assist us in purchases for our program without cost to the city. I would like to include a similar program in our evidence policy being created for our new evidence room and procedure, when needed to dispose of weapons. KEY ISSUES: MN Statute allows Law Enforcement Agencies to either destroy, retain for department use, or sell firearms to FFL dealers. "Assault style" weapons cannot be sold. FINANCIAL CONSIDERATION: Approval of this recommendation will not result in any significant cost to the city. LEGAL CONSIDERATION: The City Council has the authority to authorize this policy. State law allows for it, and other major police agencies have similar policies. By selling to FFL dealers only, the city buffers itself from any liability that direct sales to the public could produce. DEPARTMENT/RESPONSIBLE PERSON: Dick Wittenberg, ChiefofPolice, TRFPD REVIEWED BY: LRK 20

21 CITY OF THIEF RIVER FALLS PROPOSED RESOLUTION #6.07 RESOLUTION NO.: APPROVAL OF SALE OF CONFISCATED FIREARMS THROUGH A SEALED BID PROCESS TO LOCAL FFL DEALERS Presented as part of the Consent Agenda, Councilmember introduced Resolution No., being seconded by Councilmember that: WHEREAS, MN State Patrol disposes of confiscated firearms in a sealed bid process to FFL dealers, and retains the funds for use in their firearms program. In the process of transferring evidence from the old evidence room to our new facility, we have numerous confiscated firearms that we need to dispose of. The value of these firearms would assist us in purchases for our program without cost to the city; and WHEREAS, MN Statute allows Law Enforcement Agencies to either destroy, retain for department use, or sell firearms to FFL dealers. "Assault style" weapons cannot be sold. THEREFORE, BE IT RESOLVED, by the City Council, to accept a Parks & Recreation/Public Safety Committee recommendation to approve and authorize the sale of confiscated firearms through a sealed bid process to local FFL dealers and retain the funds for use in the Police Department's firearms program. Presented at the May 19, 2015 Council Meeting Introduced by: Seconded by: Roll Call (if required): _ Holmer_ Howe _Sollom _Hagen _Brown _ Prudhomme _Schmalz _ Narverud Notes:

22 City of Thief River falls 1 #s.aa 1 CITY ADMINISTRATOR 405 Third Street East PO Box 528 Thief River Falls MN PHONE: FAX: lkruse@citytrfnet REQUEST FOR COUNCIL ACTION DATE: May 15, 2015 SUBJECT: Housing & Redevelopment Letter- Skylite Apartments RECOMMENDATION: It is respectfully requested the Council consider the following: MOTION TO: accept an Administrative Services Committee recommendation to certify that the Five Year and Annual Public Housing Authority(PHA) Plan of the ThiefRiver Falls HRA is consistent with the Consolidated Plan of Thief River Falls prepared pursuant to 24 CFR Part 91. BACKGROUND: The Housing and Redevelopment Authority submitted the year Plan and Annual Statement for Sky lite Apartments and request Certification by the Council of PHA Plans Consistency with the Consolidated Plan pursuant to 24 CFR Part 91. KEY ISSUES: None FINANCIAL CONSIDERATION: LEGAL CONSIDERATION: DEPARTMENT/RESPONSIBLE PERSON: Larry Kruse, City Administrator REVIEWED BY: 22

23 Housing and Redevelopment Authority 415 Arnold Avenue South Thief River Falls, MN Phone (218) FAX (218) SKYLITE APARTMENTS Project No. MN April 23, 2015 Mayor Holmer City of Thief River Falls 405 3rd St. E. Thief River Falls MN Dear Mayor Holmer, Every year the Thief River Falls Housing and Redevelopment Authority (Skylite Apartments) prepares a Rolling 5-Year Plan and an Annual Statement for the Capital Fund Program. Skylite has been receiving approximately $75,000 a year for capital improvements from HUD. Enclosed are the Year Plan and Annual Statement for your review. The Thief River Falls Board of Commissioners has approved the plan with Resolution # I have also enclosed a copy of our current Board of Commissioners. Please sign and return the "Certification by State or local Official of PHA Plans Consistency with the Consolidated Plan" for Skylite Apartment's 2015 Capital Fund Program file. If you have any questions, please call me at or one ofthe Commissioners. Debra S. Drees Executive Director Encs. 23

24 Certification by State or Local Official of PHA Plans Consistency with the Consolidated Plan U.S. Department of Housing and Urban Development Office of Public and Indian Housing Expires 4/30/2011 Certification by State or Local Official of PHA Plans Consistency with the Consolidated Plan I, BRIAN HOLMER the MAYOR certify that the Five Year and Annual PHA Plan of the THIEF RIVER FALLS HRA is consistent with the Consolidated Plan of _T_H_IE_F_R_I_V_E_R_F_A_L_Ls prepared pursuant to 24 CFR Part 91. Signed I Dated by Appropriate State or Local Official form HU SL (1/2009) OMB Approval No

25 Housing and Redevelopment Authority 415 Arnold Avenue South Thief River Falls, MN jlp ): Phone (218) FAX (218) SKYLITE APARTMENTS Project No. MN Board of Commissioners lira of Thief River Falls, MN 11aryeli\nderson 601 Main Ave. N. TRFMN (work) (home) Term Expires JimDagg POBox488 TRFMN (work) Vice Chairman Term Expires Paul Ihle PO Box574 TRF MN (work) (fax) Attorney Term Expires Emery Lee P0Box285 TRFMN (home) (cell) Chairman Term Expires Evie Johnson Northern State Bank 201 E 3rd ST. TRFMN (work) Secretary Term Expires Revised 2/

26 Housing and Redevelopment Authority 415 Arnold Avenue South Thief River Falls, MN P,hone (218) FAX (218) SKVLITE APARTMENTS Prqject No. MN RESOLUTION # THE FOLLOWING RESOLUTION WAS INTRODUCED BY COMMISSIONER EMERY LEE, CHAIRMAN, READ IN FULL AND CONSIDERED: RESOLUTION TO APPROVE TilE PHA 5-YEAR PLAN, 2015 CAPITAL FUND PROGRAM FIVE-YEAR ACTION PLAN, THE 2015 CAPITAL FUND ANNUAL PLAN, AND THE ANNUAL CIVIL RIGHTS CERTIFICATION. NOW THEREFORE, BE IT RESOLVED BY THE THIEF RIVER FALLS HOUSING AND REDEVELOPMENT AUTHORITY ACCEPTS AS FOLLOWS: THE PHA 5-YEAR PLAN, 2015 CAPITAL PROGRAM FIVE-YEAR ACTION PLAN, Tiffi 2015 CAPITAL FUND PROGRAM ANNUAL PLAN, AND THE ANNUAL CIVIL RIGHTS CERTIFICATION AS ATTACHED. COMMISSIONER IHLE MOVED THAT THE FOREGOING RESOLUTION BE ADOPTED AS INTRODUCED AND READ, MOTION WAS SECONDED BY CO~SSIO~R JOHNSON AND UPON ROLL CALL THE "A YES" AND "NAYS" WERE AS FOLLOWS: AYES: 5 NAYS: 0 THERE UPON THE CHAIRMAN DECLARED SAID MOTION CARRIED AND SAID RESOLUTION ADOPlED. 26

27 Annual Statement/Performance and Evaluation Report Capital Fund Program, Capital Fund Program Replacement Housing Factor and Capital Fund Financing Program Part 1: Summary PHAName: THIEF RIVER FALLS HOUSING & REDEVELOPMENT AUTHORITY Grant Type and Number Capital Fund Program Grant No: MN46P Replacement Housing Factor Grant No:. Date ofcffp: Type of Grant 1:81 Original Annual Statement 0 Reserve for Disasters/Emergencies r- u.s. Department of Housing and Urban Developm~t Office ofpublic and Indian Housing OMB No Exoires 06/ FFY of Grant: 2015 FFY of Grant Approval: Performance and Evaluation ReDOrt for.pc.riod Endin : Revised Annual Statement (revision no: 0 Final Performance and Evaluation Report ) Line Summarv bv Develonment Account Total Estimated Cost Total Actual Cost 1 Original Revised 1 Oblieated Exnended 1 Total non-cfp Funds Operations (may not exceed 20% of line 21) Management Improvements Administration (may not exceed 10% ofline 21) Audit Liquidated Damages Fees and Costs $17, Site Acquisition Site Improvement $11, Dwelling Structures $43, I Dwelling Equipment-Nonexpendable 1470 Non-dwelling Structures $2, Non-dwelling Equipment 1485 Demolition 1492 Moving to Work Demonstration Relocation Costs 1499 Development Activities 4 1 To be completed for the Performance and Evaluation Report 2 To be completed for the Performance and Evaluation Report or a Revised Annual Statement. 3 PHAs with under 250 units in management may use 100% ofcfp Grants for operations. 4 RHF funds shall be included here. Pagel form HUD (07/2014)

28 00 N Annual Statement/Performance and Evaluation Report Capital Fund Program, Capital Fund Program Replacement Housing Factor and Capital Fund Financing Program Part 1: Summary PHAName: Grant Type and Number TlllEF RIVER FALLS Capital Fund Program Grant No: MN'I6P HOUSING& Replacement Housing Factor Grant No: REDEVELOPMENT Date of CFFP: AUTIIORITY Type of Grant ~ Original Annual Statement 0 Reserve for Disasters/Emergencies 0 Performance and Evaluation Report for Period Ending: Line Summary by Development Accou.nt l8a ISba 1501 Collateralization or Debt Service paid by the PHA 9000 Collateralization or Debt Service paid Via System of Direct Payment U.S. Department of Housing and Urban Development Office of Public and Indian Housing OMB No FFY of Granf:2015 FFY of Grant Approval: 2015,I!;A IJII 1;;;:) UU/~V/MU./ 0 Revised Annual Statement (revision no: ) 0 Final Performance and Evaluation Report Total Estim.at.cd Cost Total Actual Cost 1 Original Revised 2 Obligated Expended Contingency (may not exceed 8% of line 20) 20 Amount of Annual Grant:: (sum oflines 2-19) $74, Amount ofline 20 Related to LBP Activities 22 Amount ofline 20 Related to Section 504 Activities 23 Amount ofline 20 Related to Security - Soft Costs 24 Amount of line 20 Related to Security- Hard Costs 25 Amount of line 20 Related to Energy Conservation Measures $67,000 Signature of Executive Dire)!j~ 'a. ~ ~ Date ~-C,-/5 I Signature of Public Housing Director Date 1 To be completed for the Performance and Evaluation Report 2 To be completed for the Performance and Evaluation Report or a Revised Annual Statement. 3 PHAs with under 250 units in management may use 100% of CFP Grants for operations. 4 RHF funds shall be included here. Page3 form HUD (07/2014)

29 0'1 N Annual Statement/Performance and Evaluation Repmt Capital FWld Program, Capital FWld Program Replacement Housing Factor and Capital FWld Financing Program U.S. Department of Housing and Urban Development Office of Public and Indian Housing OMB No Expires 06/30/2017 Part II: Supporti11g Pages PHA Name: TIITEF RNER FALLS HOUSING & REDEVELOPMENT AUTHORITY Grant Type and Number Capital Fund Program Grant No: MN46P CFFP (Yes/No): Replacement Housing Factor Grant No: I<'ederal FFY of Grant: 2015 I Development Number General Description of Major Work Development Quantity Total Estimated Cost Total Actual Cost Status of Work Name/PHA-Wide Categories AccoWltNo. Activities Original Revised 1 Funds Funds Obligated 2 Expended 2 MN027 GREEN PHYSICAL NEEDS $17,000 ASSESSMENT & ENERGY AUDIT MN027 RETRO FIT OUTDOOR POLE LIGHTS $6,550 WITH LED BULBS MN027 CAR PLUG-INS $4,935 MN027 REPLACE PELLA WINDOW SASHES $8,250 MN027 HANDICAP DOOR OPENER & $2,500 HARDWARE FOR CENTRAL BLDG. MN027 NEW ENERGY EFFICIENT LIGHTING $24,000 lin 12 ATRIUMS MN027 REPAIR OR REPLACE BINDING $11,200 WINDOWS Page4 form HUD (07/2014)

30 Capital Fund Program-Five-Year Action Plan Part 1: Summary PHA Name/Number Locality (THIEF RJ.VERFALLS MN 56701) Development Number and Wotk Statement Work Statement for Year 2 Work Statement for Year 3 A. Name fnrvp<>rl PPV?011'\ FFY 2017 THIEF RIVER FALLS FFY 2015 HRA MN027 (SKYLITE APTS.) B. Physical Improvements Annual Statement $75,000 Subtotal $75,000 $75,000 C. Management Improvements D. PHA-Wide Non-dwelling Structures and Equipment E. Administration F. Other G. Operations H. Demolition I. Development J. Capital Fund Financing- Debt Service K. Total CFP Funds $75,000 $75,000 $75,000 L. Total Non-CFP Funds M. Grand Total $75,000 $75,000 $75, U.S. Department of Housing and Urban Development Office of Public and Indian Hppsing OMB No m26 Expires 08/ X OriginalS-Year Plan Revision No: Work Statement for Year 4 Work Statement for Year 5 FFY 2018 FFY 2019 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 Page 1 of6 form HUD ( 4/2008)

31 Capital Fund Program-Five-Year Action Plan - Part ll: Supportin2 Pa2es- Physical Needs Work Statement(s) Work Work Statement for Year Statement for FFY 2016 Year 1 FFY Development Number/Name I Quantity I Estimated Cost 2015 General Description ofmajor Work Categaries See I MN 027 Annual I Statement I TIDEF RIVER FALLS HRA (SKYLITEAPARTMENTS) Development Number/Name General Description of Major Work Categories MN027 THIEF RIVER FALLS HRA CSKYLITE APARTMENTS).... U.S. Departmen~ ofh{)using and :Urban D~velOpSne.nt 1 Office of' Public and Indian Rousmg OMB No Exoires 4/ Work Statement fo~ :...= FFY?017 :I Quantity I I l Estimated Cost ~PLACEMENTCARPETFOR10 APARTMENTS 10 $13,000 SHINGLE GABLED ROOFS ON 4 QUADRANTS & CENTRAL BLDG T 5 $20,000!ENERGY EFFICIENT LIGHT FIXTURES FOR APARTMENTS 228 $20,000 [REPLACE EXTERIOR DOORS 20 $12,000 ~PLA.CE SKYLITE WINDOWS [IN 4 QUADRANTS 84 $42,000 looor ENTRY LOCKSETS WRACTORFORNUUNTENANCE GARBAGE ROOM DOORS 76 I 1 4 $5,300 $10,000 $15,700 ~IN OLEUM FOR APARTMENTS 10 $4,500 [~UCH, LOVESEAT, CHAIRS FOR 11 v ROOM j 1 SET $4,500 REPLACE ~URVEILLANCE tcmvffiras WITH NIGHT VISION 8 $3,000 Subtotal of Estimated Cost $ 75,000 Subtotal of Estim~'ted Cost $75,000 P~Jef6 { fer!h IRJD (4/2998) I

32 Lapltal ~ und Program-Five-Year Action Plan Part U: Su.pporting Pages-Physical Needs Work Statement(s) Work Work Statement for Year Statement for FFY2018 Year 1 FFY Development Number/Name Quantity 2015 General Description of Major Work Categories See Annual Statement J\.1N027 THIEF RIVER FALL S_ HRA (SKYIITE AP ARTME:t--lTS) PAINT ATRIUMS & COMM. ROOM 13 CARPET FOR APARTMENTS 20 SIDEWALK REPAIRS treplacement REFRIGERATORS 5 Estimated Cost $20,000 $22,400 $24,600 $3,000 U.S. DepartmenqofHousingand Urban Develo~ent Office of Public and Indian Itousing OMBNo cri.26 E.. - ~U-., ---.,..,VItfltiVUJ Work Statement for Year: ; I FFY2019 Development Number/Name l Quantity Estimated Cost General Description ofmajor Work Categories I MN027 THIEF RIVER FAT LS HRA (SIG;J. ITE AP ARTh1ENTS) INEW COUNTER TOPS FOR APTS. 40 $54,960 I tt-ffiw BREAKER BOXES IN BOILER 1 12 $15,000!ROOMS tt-ffiw TRANSFORMERS FOR I 4 $5,040 BOILER ROOMS ' I I I 1 I I I [REPLACEMENT STOVES 10 $5,000 I I I! I I Subtotal of Estimated Cost $75,000 ' Subtotal of Estimated Cost $ 75,000 Page 4 ef6 1 ferm 1lU.9 59Wi'S:2 ~ )

33 CITY OF THIEF RIVER FALLS PROPOSED RESOLUTION 1 #a.oa 1 RESOLUTION NO. : APPROVAL OF FlVE YEAR AND ANNUAL PUBLIC HOUSING AUTHORITY PLAN OF THE THIEF RIVER FALLS HRA Presented as part of the Consent Agenda, Councilmember introduced Resolution No., being seconded by Councilmember, that: BE IT RESOLVED, by the City Council, to accept an Administrative Services Committee recommendation to certify that the Five Year and Annual Public Housing Authority(PHA) Plan of the Thief River Falls HRA is consistent with the Consolidated Plan of Thief River Falls prepared pursuant to 24 CFR Part 91. Presented at the May 19, 2015 Council Meeting Introduced by: Seconded by: Roll Call (if required): _Holmer_Howe Soil om _Hagen _Brown _Prudhomme _ Schmalz _ Narverud Notes: 33

34 -~ City of Thief River falls #6.09 CITY ADMINISTRATOR 405 Third Street East PO Box 528 Thief River Falls MN PHONE: FAX: REQUEST FOR COUNCIL ACTION DATE: May 15, 2015 SUBJECT: NW MN Multi-County HRA Refinancing RECOMMENDATION: It is respectfully requested the Council consider the following: MOTION TO: accept an Administrative Services Committee recommendation to give approval to Northwest Minnesota Multi-County Housing and Redevelopment Authority to issue refunding bonds with respect to Multi-Family Rental Housing Facilities in the City of Thief River Falls and Authorizing the Execution and Delivery of an Amendment to Option Purchase BACKGROUND: NW MN Multi-County Housing and Redevelopment Authority requested authorization from the City in order to issue refunding bonds and an amendment to option to purchase. See attached letter. KEY ISSUES: None FINANCIAL CONSIDERATION: LEGAL CONSIDERATION: Reviewed by City Attorney Ihle with positive recommeqdation DEPARTMENT /RESPONSIBLE PERSON: Larry Kruse, City Administrator REVIEWED BY: 34

35 Shauna L. Coons Direct Dial: (612) BEST & FLANAGAN llp 225 South Sixth Street, Suite 4000 Minneapolis, Minnesota TEL FAX BESTlAW COM BEST & FLANAGAN April 27, 2015 VIA FEDERAL EXPRESS Brian Holmer, Mayor Larry Kruse, City Administrator City of Thief River Falls City Hall 405 Third Street East PO Box 528 Thief River Falls, MN Re: Proposed Issuance of NWMMCHRA 2015 Pooled Housing Revenue Refunding Bonds Ladies and Gentlemen: The Northwest Minnesota Multi-County Housing and Redevelopment Authority (the "Authority") has received a proposal from Dougherty & Company, LLC in Minneapolis, Minnesota to issue the Refunding Bonds described above. This proposed refinancing would not require any financial support from any of the cities involved in this pooled refinancing. In order to accomplish the new refunding issue, certain documents of the Authority, the Bond Trustee and the City need to be approved or amended, including the Authorizing Resolution and the Option to Purchase. Enclosed with this letter you will find a City Resolution that authorizes the Authority to issue the Refunding Bonds and an Amendment to Option to Purchase. The Authority needs to receive the approved Resolution and Amendment to Option to Purchase from the City by the end of May or early June; and therefore, requests that you schedule consideration of the City's Resolution and Amendment to Option to Purchase at the next City Council meeting in May. Following adoption of the enclosed Resolution and Amendment to Option to Purchase, please forward certified copies to me at the address above. 35

36 RESOLUTION NO. CITY OF THIEF RIVER FALLS, MINNESOTA RESOLUTION GIVING APPROVAL TO NORTHWEST MINNESOTA MULTI COUNTY HOUSING AND REDEVELOPMENT AUTHORITY TO ISSUE REFUNDING BONDS WITH RESPECT TO MULTI-FAMILY RENTAL HOUSING FACILITIES IN THE CITY OF THIEF RIVER FALLS AND AUTHORIZING THE EXECUTION AND DELIVERY OF AN AMENDMENT TO OPTION TO PURCHASE WHEREAS, the Northwest Minnesota Multi-Connty Housing and Redevelopment Authority (the "NMCHRA") has been established pursuant to Minnesota Statutes, Section as the multi-county housing and redevelopment authority for the counties of Polk, Kittson, Norman, Marshall, Red Lake, Pennington and Roseau, Minnesota, which area of operation includes the City ofthiefriver Falls (the "City"); and WHEREAS, pursuant to Minnesota Statutes, Chapter462C and Sections to (together the "Act"), the NM CHRA is authorized to adopt a housing plan and carry out programs for the financing of multi-family housing including housing development projects; and WHEREAS, the NMCHRA adopted a housing finance program (the "Program") for the financing of one or more housing development projects (the "Project"), located in the City, as more fully described in Exhibit A attached hereto, following public hearings thereon on March 22 and 29, 1995;and WHEREAS, the City has previously authorized the NMCHRA to issue its bonds (the "1995 Bonds") to finance the costs of the Project in the City; and WHEREAS, the NMCHRA previously issued its refunding bonds (the "2006 Bonds") to redeem the 1995 Bonds and refinance the Project; and WHEREAS, the NMCHRA has proposed to issue its Governmental Housing Revenue Refunding Bonds (Pooled Housing Program) Series 2015 (the "20 15 Bonds") to redeem the 2006 Bonds and refmance the Project; and WHEREAS, the NMCHRA has proposed to enter into an Amendment to Option to Purchase with the City, in substantially the fonn of which is now on file with the City, in order to incorporate terms consistent with the issuance ofthe 2015 Bonds; and WHEREAS, upon the completion ofthe transactions contemplated in this Resolution the City will incur no obligation or liability with respect to the issuance of the 2015 Bonds by the Northwest Minnesota Multi-County Housing and Redevelopment Authority. NOW, THEREFORE, BE IT RESOLVED by the City Council ofthe City of Thief River Falls, Minnesota: 36

37 1. In order to serve the housing needs of the City, the City Council of the City hereby affirms its determination and declaration that there is a need for the NMCHRA to exercise its powers in the City and approves the issuance by the NMCHRA of its 2015 Bonds to redeem the2006bonds and refinance the Project. 2. The City will cooperate with and assist the NMCHRA in the preparation of any necessary submissions, applications or approvals required or necessary to successfully undertake the redemption of the 2006 Bonds. 3. The City hereby approves the execution and delivery of the Amendment to Option to Purchase by the Mayor of the City, or by any other City Official on behalf of the City. ADOPTED: J 2015 CITY OF THIEF RIVER FALLS, MINNESOTA By Its Mayor Attest: By Its City Administrator 2 37

38 EXHIBIT A PROJECT DESCRIPTION: Thirty-six (36) units of General Occupancy Housing LOCATION: Westview Avenue UNITS: 4-1BR/1 Bath Apt BR/2 Bath Apt. ~- 3BR/2 Bath Apt. 36 units total PROJECT DESCRIPTION: Forty-seven (47) units of Senior Housing LOCATION: 215 9th Street East UNITS: BR/1 Bath Apt BR/1 Bath & Den Apt. li-2br/2 Bath Apt. 47 units total 9860/930386/ o07 A-1 38

39 STATE OF MINNESOTA ) )ss COUNTY OF PENNINGTON ) AUTHENTICATING CERTIFICATE I, the undersigned, being the duly qualified City Administrator of the City of Thief River Falls, Minnesota, hereby certify that I have carefully compared the preceding attached Resolution No., adopted at a regular meeting of the City Council of the City ofthiefriver Falls held on J 2015, entitled: RESOLUTION GIVING APPROVAL TO NORTHWEST MINNESOTA MULTI COUNTY HOUSING AND REDEVELOPMENT AUTHORITY TO ISSUE REFUNDING BONDS WITH RESPECT TO MULTI-FAMILY RENTAL HOUSING FACILITIES IN THE CITY OF THIEF RIVER FALLS AND AUTHORIZING THE EXECUTION AND DELNERY OF AN AMENDMENT TO OPTION TO PURCHASE with the original thereof on file and of record in my office, and that the same is a full, true and complete copy of said original. I further certify that a majority of the members of the City Council were present throughout the meeting, and that the Resolution was passed by a majority of all of the members of the Council present. Witness my hand and the official seal of said City of Thief River Falls this day of [Seal] City Administrator City of Thief River Falls, Minnesota A-2 39

40 AMENDMENT TO OPTION TO PURCHASE This Amendment is entered into this _ day of 2015, by and between the Northwest Minnesota Multi-County Housing and Redevelopment Authority, a body corporate and politic under the laws of the State of Minnesota (the "HRA"), and the City of Thief River Falls, Minnesota, a municipal corporation under the laws of the State of Minnesota (the "City"). The HRA has previously granted to the City (or its assignee) the exclusive right and option to purchase the property, and any improvements thereon which is legally described on the attached Exhibit A (the "Property") in accordance with the terms of an Option to Purchase. The HRA proposes to issue its Governmental Housing Revenue Refunding Bonds (Pooled Housing Program) Series 2015 Bonds (the "Series 2015 Bonds"). Now, therefore, the HRA and the City agree that the Option to Purchase, as amended by this Amendment to Option to Purchase, is subordinate to any mortgage given securing the Northwest Minnesota Multi-County Housing and Redevelopment Authority Government Housing Revenue Refunding Bonds (Pooled Housing Program), Series 2015, issued pursuant to an Indenture of Trust dated as of 2015 (the "Indenture"), by and between the HRA and U.S. Bank, National Association, a national banking association, as trustee (the "Trustee"), and all references in the Option to Purchase to the term "Bonds" shall refer to the Series 2015 Bonds. The Option to Purchase, as amended by this Amendment to Option to Purchase, shall supercede any and all prior agreements between the City and the HRA regarding the purchase of the Property, all of which the parties hereby agree are null and void and of no further force or effect. Signature Page to Follow 40

41 NORTHWEST MINNESOTA MULTI COUNTY HOUSING AND REDEVELOPMENT AUTHORITY By: Its: STATE OF MINNESOTA ) ) ss. COUNTY OF J The foregoing instrument was acknowledged before me this day of ' 2015, by the of Northwest Minnesota Multi-County Housing and Redevelopment Authority, a body corporate and politic under the laws of the State of Minnesota, on behalf of the Authority. Notary Public [Signature Page of HRA Amendment to Option to Purchase] 41

42 CITY OF THIEF RIVER FALLS, MINNESOTA By: Its: STATE OF MINNESOTA ) ) ss. COUNTYOF ) The foregoing instrument was acknowledged before me this day of, 2015, by the of the City of Thief River Falls, Minnesota, a municipal corporation, on behalf of the City of Thief River Fails, Minnesota /930386/ Notary Public [Signature Page ofthiefriver Falls Amendment to Option to Purchase] 42

43 EXHIBIT A Legal Description of the Property Parcell Parcel2 Lots 1-12, Block 2, Naper's Third Addition to the City of Thief River Falls, Pennington County, Minnesota. Beginning at the southwest corner of Block Three (3) in Oakland Addition to the City of Thief River Falls, Pennington County, Minnesota; thence north, assumed bearing, along the wester! y line of said Block Three (3) a distance of 318 feet; thence easterly parallel with the south line of said Block Three (3) a distance of 300 feet to the easterly line of said Block Three (3); thence south along said easterly line a distance of 318 feet; thence west along the south line of said Block Three (3) a distance of300 feet to the point of beginning. (The above-described area is also known as the south 18 feet of vacated Lot Two (2), all of vacated Lots Three (3) through Fourteen (14), the south 18 feet of vacated Lot Fifteen (15) and part of the vacated alley all lying in Block Three (3) of Oakland Addition to the City of Thief River Falls, Pennington County, Minnesota. A-1 43

44 City of Thief River Falls #6.10 UTILITIES BILLING OFFICE HISTORIC SOO LINE R.R. DEPOT PHONE: 2\ Third Street East. P.O. Box 528 FAX: ThiefRiverFalls, MN Request for Council Action May 18, 2015 Subject: Northern Municipal Power Agency Director and Advisor Recommendation: It is respectfully requested the Council consider the following: Motion To: Accept the Utilities Committee recommendation to appoint Barry Froiland as Director and Dale Narlock as Advisor to the Northern Municipal Power Agency Board of Directors. Terms effective May 1, 2015 through April 30, Background: The City of Thief River Falls is a member of the Northern Municipal Power Agency. Each of the twelve members of the Agency appoints a Director and Advisor as a member of the NMPA Board of Directors. Key Issues: Reviewed annually. Financial Considerations: NA Legal Considerations: Appointments are part of NMPA by-laws. Department/Responsible Person: Electric I Barry Froiland- Current NMPA Director Reviewed by: 44

45 CITY OF THIEF RIVER FALLS PROPOSED RESOLUTION 1 #6.1o 1 RESOLUTION NO. : APPROVAL TO APPOINT BARRY FROILAND AS DIRECTOR AND DALE NARLOCK AS ADVISOR TO THE NORTHERN MUNICPAL POWER AGENCY BOARD OF DIRECTORS Presented as part of the Consent Agenda, Councilmember introduced Resolution No., being seconded by Councilmember, that: WHEREAS, the City of Thief River Falls is a member ofthe Northern Municipal Power Agency. Each of the twelve members of the Agency appoints a Director and Advisor as a member of the NMP A Board of Directors. THEREFORE, BE IT RESOLVED, by the City Council, to accept the Utilities Committee recommendation to appoint Barry Froiland as Director and Dale Narlock as Advisor to the Northern Municipal Power Agency Board of Directors. Terms effective May 1, 2015 through April 30, Presented at the May 19, 2015 Council Meeting Introduced by: _ Seconded by: Roll Call (if required): _ Holmer_ Howe _Sollom _Hagen _Brown _ Prudhomme _ Schmalz _ Narverud Notes:

46 City of Thief River falls FINANCE DIRECTOR 405 Third Street East PO Box 528 Thief River Falls MN PHONE: FAX: REQUEST FOR COUNCIL ACTION SUBJECT: 2014 Budget Adjustments May 14,2015 RECOMMENDATION: It is respectfully requested that the Council consider the following: Motion to: Accept the Administrative Services Committee recommendation to amend the 2014 budget to reflect the actions taken by the City Council and acknowledge donations and/or grants received on major unbudgeted items. BACKGROUND: The City of Thief River Falls amends the budget from time to time (at least on an annual basis) to reflect actual actions taken by the City Council and/or acknowledge donations and grants received after the 2014 budgets were adopted in December Emphasis is placed on amending the general fund budget, since this budget is reported as part of the City's annual financial statements. The following represents the recommended revenue and expenditure budget amendments for the general fund: Acknowledge Donations: Arena- Rain Garden- The City received donations in 2014 in the amount of $24, and also $74,573 from the Clearwater Legacy Grant. The project was completed in Funds will be assigned to the project Private Donations $98, Fire Department Pagers - The City received donations from Red Lake Electric to assist in the purchase of pagers for the fire Department Private Donations Small Tools & Minor Equipment $ 1, $( 1,000.00) Police Department recorders & camera - The City received donations from Noper Charitable Trust to assist in the purchase of Digital recorders and a camera for the Police Department Private Donations I Small Tools & Minor Equipment $ 2, $( 2,300.00) Curling Club- The City received donations from the Noper Charitable Trust to assist the Curling Club with their loan totaling $14, Private Donations Loans Receivable- Current $ 5, $( 5,000.00) Zamboni- The City received donations from the Dondelinger Foundation to assist in the purchase of a Zamboni in Private Donations General Admin- Operating Transfer $20, $(20,000.00) Northrup Park Restroom - The City received donations from the Hartz Foundation ($1 0,000), the Be ito Foundation ($1,000), and The Noper Charitable Trust ($5,000) to assist with the construction of the Northrup Park restroom facility Private Donations General Admin - Civic Events $ 16, $(16,000.00) Lion's Park Restroom - The City received a donation from the Hartz Foundation to assist with the construction of the Lion's Park Restroom facility Private Donations General Admin- Civic Events $ 7, $( 7,000.00) 46

47 Sale of Surplus property- The City throughout the year had multiple on-line auctions for property that was declared surplus. Per City Code, the proceeds from these auctions are placed in the City's general fund. As part of the 2014 budget process, Park and Recreation was allowed to designate a portion of the proceeds for the purchase of a skidsteer and a Bos snowplow. It is recommended the balance of the proceeds be transferred into the Revolving Capital Fund- Aid Fund for future City needs. I Miscellaneous Revenue I Small Tools and Minor Equipment I Machinery and Equipment I General Admin- operating transfer $33, $( 4, ) $( 5, ) $(23,394.40) Severance Pay- There was unplanned retirements in the Park and Recreation Department, Community Services Department, Police Department, Government Buildings, and City Administration in The severance pay can be funded with reserves set aside for that purpose Mise transfers in I City Admin- severance pay I Gov't Building- severance pay Police- severance pay Park & Rec- severance pay Community Services- severance pay $174, $( 42,165.85) $( 24,668.39) $( 43,740.57) $( 34,392.66) $( 29,771.44) Budget Contingency Fund- As part of the 2014 budget process the City had $101,258 set aside for transfers to pay for the city share of construction projects and potential future severance payouts. The City had no local share amounts on construction projects. With the balance of surplus property sales transferred to revolving capital fund- Aid Fund in the amount of$23,394.40, the remaining balance of$77, will be transferred into reserves for future severance payouts. Electric Department- Due to unplanned maintenance to the Darn, a budget transfer from West 1st street Development Phase 2 in the amount of $184,962 will need to be transferred to for $55,000 and for $129,962 KEY ISSUE: The 2014 General Fund budget is reported as part of the annual financial report and is important to have the budget reflect the Council's intent and acknowledge donations and grants received LEGAL CONSIDERATIONS: The City Council has the authority to amend the City's annual budget as needed. DEPARTMENT/RESPONSIBLE PERSON: Angela Philipp, Finance Director 47

48 CITY OF THIEF RIVER FALLS PROPOSED RESOLUTION #6.11 RESOLUTION NO. : APPROVAL OF 2014 BUDGET ADJUSTMENTS Presented as part of the Consent Agenda, Councilmember introduced Resolution No., being seconded by Councilmember that: RESOLVED, by the City Council, to Accept the Administrative Services Committee recommendation to amend the 2014 budget to reflect the actions taken by the City Council and acknowledge donations and/or grants received on major unbudgeted items: Acknowledge Donations: Arena- Rain Garden- The City received donations in 2014 in the amount of$24, and also $74,573 from the Clearwater Legacy Grant. The project was completed in Funds will be assigned to the project Private Donations $98, Fire Department Pagers- The City received donations from Red Lake Electric to assist in the purchase of pagers for the fire Department Private Donations Small Tools & Minor Equipment $ 1, $( 1,000.00) Police Department recorders & camera- The City received donations from Noper Charitable Trust to assist in the purchase of Digital recorders and a camera for the Police Department Private Donations Small Tools & Minor Equipment $ 2, $( 2,300.00) Curling Club- The City received donations from the Noper Charitable Trust to assist the Curling Club with their loan totaling $14, Private Donations Loans Receivable- Current $ 5, $( 5,000.00) Zamboni- The City received donations from the Dondelinger Foundation to assist in the purchase of a Zamboni in Private Donations General Admin- Operating Transfer $20, $(20,000.00) Northrup Park Restroom- The City received donations from the Hartz Foundation ($10,000), the Beito Foundation ($1,000), and The Noper Charitable Trust ($5,000) to assist with the construction ofthe Northrup Park restroom facility Private Donations I General Admin- Civic Events $ 16, $(16,000.00) Lion's Park Restroom- The City received a donation from the Hartz Foundation to assist with the construction of the Lion's Park Restroom facility Private Donations General Admin - Civic Events $ 7, $( 7,000.00) Sale of Surolus property- The City throughout the year had multiple on-line auctions for property that was declared surplus. Per City Code, the proceeds from these auctions are placed in the City's general fund. As part of the 2014 budget process, Park and Recreation was allowed to designate a portion of the proceeds for the purchase of a skidsteer and a Bos snowplow. It is recommended the balance of the proceeds be transferred into the Revolving Capital Fund -Aid Fund for future City needs. I Miscellaneous Revenue Small Tools and Minor Equipment I Machinery and Equipment General Admin- operating transfer $33, $( 4,750.00) $( 5,764.00) $(23,394.40) 48

49 Severance Pay- There was unplanned retirements in the Park and Recreation Department, Community Services Department, Police Department, Government Buildings, and City Administration in The severance pay can be funded with reserves set aside for that purpose. I Mise transfers in City Admin- severance pay l l l Gov't Building- severance pay I Police- severance pay Park & Rec- severance pay l Community Services- severance pay $174, $( 42, ) $( 24,668.39) $( 43,740.57) $( 34,392.66) $( 29,771.44) 13udget ontingency Fund - As part of the 2014 budget process the City had $10 I,258 set aside for transfers to pay for the city share of construction projects and potential future severance payouts. The City had no local share amounts on construction projects. With the balance of surplus property sales transferred to revolving capital fund- Aid Fund in the amount of$23,394.40, the remaining balance of$77, will be transferred into reserves for future severance payouts. Electric Department- Due to unplanned maintenance to the Dam, a budget transfer from West I st street Development Phase 2 in the amount of $184,962 will need to be transferred to for $55,000 and for $129,962 Presented at the May 19, 2015 Council Meeting Introduced by: Seconded by: _ Roll Call (if required): _Holmer_Howe Sollom _Hagen _Brown _Prudhomme _Schmalz _Narverud Notes:

50 City of Thief River falls Electric Department 405 Third Street East PO Box 528 Thief River Falls MN #6.12 PHONE: FAX: Request for Council Action DATE: May 19,2015 SUBJECT: Approval of Power Plant Operator/Electronic Technician Evaluation by Fox Lawson and Authorizing Proceeding with Filling Position RECOMMENDATION: It is respectfully requested the Council consider the approval ofthe Fox Lawson evaluation of the Power Plant Operator/Electronic Technician position as a Grade Level 6 and authorize the Electric Department to proceed with the process to fill the position. As the position is a Teamster position, filling will first be opened to the Teamster #320 employees, and if not filled by a qualified Teamster employee, the vacancy will be opened to the public. BACKGROUND: The City Council approved Resolution No , which approved the job description of a Power Plant Operator/Electronic Technician and authorized its submittal to Fox Lawson for evaluation. This position is a newly created position to replace the vacancy created by the retirement of Les Cota, Power Plant Operator. Key Issues: Due to recent retirements, the Electric Department needs to fill the position. Financial Considerations: The vacancy of the Power Plant Operator is being replaced with the Power Plant Operator/Electronic Technician, which position is Legal Considerations: None Department/Responsible Person: Dale Narlock, Electric Superintendent Reviewed by: 50

51 CITY OF THIEF RIVER FALLS PROPOSED RESOLUTION 1 # RESOLUTION NO. : APPROVAL OF POWER PLANT OPERA TOR/ELECTRONIC TECHNICIAN EVALUATION BY FOX LAWSON AND AUTHORIZING PROCEEDING WITH FILLING POSITION Presented as part of the Regular Agenda, Councilmember introduced Resolution No., being seconded by Councilmember, that: WHEREAS, the City Council approved Resolution No , which approved the job description of a Power Plant Operator/Electronic Technician and authorized its submittal to Fox Lawson for evaluation. This position is a newly created position to replace the vacancy created by the retirement of Les Cota, Power Plant Operator. THEREFORE, BE IT RESOLVED, by the City Council, to approve of the Fox Lawson evaluation of the Power Plant Operator/Electronic Technician position as a Grade Level 6 and authorize the Electric Department to proceed with the process to fill the position. As the position is a Teamster position, filling will first be opened to the Teamster #320 employees, and if not filled by a qualified Teamster employee, the vacancy will be opened to the public. Presented at the May 19,2015 Council Meeting Introduced by: Seconded by: Roll Call (if required): _Holmer_Howe Sollom _Hagen _Brown _Prudhomme _ Schmalz _ Narverud Notes:

52 City of Thief River Falls #7.01 DIRECTOR OF COMMUNITY SERVICES 405 Third Street East PO Box 528 Thief River Falls MN Request for Council Action PHONE: FAX: DATE: May 14,2015 SUBJECT: 2015 Street & Utilities Improvements RECOMMENDATION: It is respectfully requested that the Council consider the following: Motion to: Approve the low bid of $2,991, for the base bid, Alternate l, and Alternate 2 from Davidson Construction and award the project. BACKGROUND: The proposed work was bid as a result of meetings with department heads, Council committees, developers, and according to items in the City's Capital Improvement Plan. This project includes the following items of work: 1. Noper Property Phase I- Street & Utilities Improvements 2. Mark Boulevard- Street Improvements and lighting 3. Markley A venue - Street & Utilities Improvements 4. Tindolph Avenue- Water Main Replacement 5. Alice Drive- Street & Utilities Improvements 6. Calumel A venue - Street Improvements 7. Northwest Mfg. Home Park Water & Sewer Extensions (Alternate 1) 8. Breezy Drive- Street Improvements (Alternate 2) KEY ISSUES: Bids for this project were opened on May 13th from four contractors. The low bid was received from Davidson Construction at $2,991, and the high bid from Sellin Brothers Inc. at $4, 126, The estimate was $3,425, The low bid was 15% below the estimate. Les Snetting has requested the Northwest Mfg. Home Park Improvements (Alternate 1) be approved and John Kertz has requested the Breezy Drive Improvements (Alternate 2) be approved. Both parties have requested the option to be assessed these costs. FINANCIAL CONSIDERATIONS: A summary of bids is attached. LEGAL CONSIDERATION: None DEPARTMENTIRESPONSffiLE PERSON: Mark Borseth, Community Services Director REVIEWED BY: Encl:(l) 52

53 SUMMARY OF BIDS 2015 STREET & UTILITIES IMPROVEMENTS THIEF RIVER FALLS, MN BIDS OPEN: MAY 13, :00P.M. BASE BID ALTERNATE 1 ALTERNATE 2 TOTAL BID ENGINEERS ESTIMATE $3,135, $140, $149, $3,425, DAVIDSON CONSTRUCTION NEWFOLDEN, MN $2,697, $151, $142, $2,991 ' GLADEN CONSTRUCTION LAPORTE, MN $2,911, $173, $138, $3,223, SPRUCE VALLEY CORP MIDDLE RIVER, MN $3,157, $126, $181, $3,465, SELLIN BROTHERS, INC HAWLEY,MN $3,743, $167, $215, $4,126, I I --- U1 w

54 CITY OF THIEF RIVER FALLS PROPOSED RESOLUTION #7.01 RESOLUTION NO.: APPROVAL OF LOW BID OF $2,991, FOR THE BASE BID, ALTERNATE 1 AND ALTERNATE 2 FROM DAVIDSON CONSTRUCTION FOR THE 2015 STREET & UTILITIES IMPROVEMENT PROJECT Presented as part of the Regular Agenda, Councilmember introduced Resolution No., being seconded by Councilmember, that: WHEREAS, The proposed work was bid as a result of meetings with department heads, Council committees, developers, and according to items in the City's Capital Improvement Plan. This project includes the following items of work: 1. Noper Property Phase I- Street & Utilities Improvements 2. Mark Boulevard- Street Improvements and lighting 3. Markley Avenue- Street & Utilities Improvements 4. Tindolph Avenue- Water Main Replacement 5. Alice Drive- Street & Utilities Improvements 6. Calumel A venue - Street Improvements 7. Northwest Mfg. Home Park Water & Sewer Extensions (Alternate 1) 8. Breezy Drive- Street Improvements (Alternate 2) WHEREAS, bids for this project were opened on May 13 1 h from four contractors. The low bid was received from Davidson Construction at $2,991, and the high bid from Sellin Brothers Inc. at $4,126, The estimate was $3,425, The low bid was 15% below the estimate. Les Snetting has requested the Northwest Mfg. Home Park Improvements (Alternate 1) be approved and John Kertz has requested the Breezy Drive Improvements (Alternate 2) be approved. Both parties have requested the option to be assessed these costs. THEREFORE, BE IT RESOLVED, by the City Council, to accept the Public Works Committee recommendation to approve the low bid of $2,991, for the base bid, Alternate 1, and Alternate 2 from Davidson Construction and award the project. Presented at the May 19, 2015 Council Meeting Introduced by: _ Seconded by: Roll Call (if required): _Holmer_Howe _Sollom _Hagen _Brown _ Prudhomme _ Schmalz _ Narverud Notes:

55 City of Thief River falls DIRECTOR OF COMMUNITY SERVICES 405 Third Street East PO Box 528 Thief River Falls MN Request for Council Action PHONE: FAX: DATE: May 15, 2015 SUBJECT: River Pointe Townhomes- Tax Increment Financing RECOMMENDATION: It is respectfully requested that the Council consider the following Public Works Committee Recommendation: Motion to: Approve the Development Agreement for Tax Increment Financing District 1-11 BACKGROUND: Skip Duchesneau of River Pointe Townhomes has been working on site selection and project development since 2012 for the construction of six four-unit affordable townhomes. The initial site was the Annie Park property which gained preliminary approval with the condition that the city would hold a neighborhood meeting for community input. The neighborhood was opposed to losing the park so the council removed that site as a candidate. The developer then pursued the Wennberg Property adjacent to the Dean Foods Distribution Center on VanRooy Drive. This site also met neighborhood opposition and was not funded. The developer most recently applied for, and was granted funding on the former Precious Seed Bible Baptist Church site on Alice Drive South and is moving forward with the development at that location. During the initial process in 2012 the council authorized the use oftax increment financing in resolution KEY ISSUES: Mr. Duchesneau has purchased, platted and re-zoned the Alice Drive property for the townhome project. He has also requested public infrastructure, completed building construction drawings and has applied for a building permit. This is a significant project that adds 24 housing units in our community. A public Hearing was held on April ih, and as a result the Tax Increment Financing District 1-11 was established. FINANCIAL CONSIDERATIONS: The developer has pre-paid for the cost to develop the tax increment financing district. The city, county and school district will forgo tax revenue above the current tax revenue for a period to be determined in the agreement. LEGAL CONSIDERATION: A Public Hearing was held with a notification and a comment period for Pennington County and lsd #564. DEPARTMENT/RESPONSIBLE PERSON: Mark Borseth, Community Services Director. REVIEWED BY: Encl. (2) 55

56 4117/2015 Base Value Assumptions - Page 1 A EHLERS ~ t.t AtH.W'.;fil I"Utl~IC II~AI&C\ River Point Town homes - 2.0% Inflation. Rate of 5.25% City of Thief River Falls, MN 24 UnH, Ron1ol Townhom" DlatrlctType: District Name/Number: Coun11 District II: Firat Year Construction or Inflation on Value Exloting District Specify No. Yoaro Remaining Inflation Rate - Ev«y Year. Interest Rate: Present Value Date: First Period Er.:llng Tax Year District was Certified: Cashllow Assumes First Tax lnaement For Development Years ol Tax lnaernent Assumes Last Year oftax Increment Fiscal Clsparities Election [Ortslde (A), Inside (B), or NAI Incremental or Total Ascal Disparities FiscaiDspanties contribution Ratio FlscaiDspanties Metr<>-Wide Tax Rate MaXImum/Frozen Local Tax Rate: Current Local Tax Rate: (Use lesser of current or Max.) state-wide Tax Rate (Comm.llnd. only used for total taxes) Mar1<et Value Tax Rate (Used for total taxes) Houolng llf 11 TBD 2.00' % 1-Aug-15 1.f'eb-16 Pay NA NA NA NA % Pay % Pay % Pay % Pay 2015 ASSUMPTIONS AND RATES TaxRotae Exempt Class Rate (Exempt) 201~ Commercial ln<llstlial Preferred a ass Rate (CA Pref.) First $150,000 0/er $150,000 Commerdal Industrial aass Rate (Cn) Rental Housing Class Rate (Rental) Affordable Rental Housing Class Rate (All. Rental) First $100,000 o.ter $100,000 Non HomesteaJl Reslden1!al (Non-H Res. 1 Unit) First $500,000 o.ter $500,000 Homestead Resldental Class Rate (Hmstd. Res ) First $500,000 o.ter $500,000 ~r1cij i tural Non-Homestead 0,00% 1.50% 200% 200% 125% 0.75% 0,25% 100% 1.25% 1.00% 1.25% 1.00% Note: 1. BaM vallhiii are booad upon review of County weboke on December 10, U1 "' Pr~e"d ~ Ehln &Anod.ta, Inc. - e.llmttts Ott)' N:Wfnnsola,Thltf'Rivw FaJisYiauslng. EconomiC- fwd«it!gpm nt\n"tif Dl!lrlds\TIF Tu Cr dll201!\"nf R1N'\2015mF c11111~ lnllallon

57 4/17/2015 Base Value Assumptioos -Page 2 e ~,~, ~,,~,~.~ River Point Town homes - 2.0% Inflation. Rate of 5.25% City ot Thief River Falls, MN 24 UnH, Rental Townhomeo Note: 1. Market valuoo are booed upon ea11matoo from the Pennington ColHlty Aaaeoaor dated March 2S, Taxea and tax Increment wlll vary algnflcantly from year to year depending upon valuee, ratee, state law, flecal dieparftlee and other factors which cannot be predicted. U Preper.cl byeti J 6.AttCICie1t~, lnc, - &tlmli.. Oriy N:'f.otfnrnote\Ttlf.t'Riv.- Fllls'+tousfnsl- Economic Rld...,.lopmtni\TIF\TlF Dlllrlds\TIF TU CrtdU ~01!\.TIF ~01~\lF cmht'iow ,0 lnf!iiu~

58 4/17/2015 Tax Increment Gashflow- Page 3 e ~,~J!,~. River Point Town homes - 2.0% Inflation. Rate of 5.25% City of Thief River Falls, MN 24 Unit, Rental Townhomes U1 co 100% 9,063 (796) 100% 12,085 (796). 100% 12,326 (796) 100% 12,573 (796) 100% 12,824 (796) 100% 13,081 (796) 100% 13,342 (796) 100% 13,609 (796) 100% 13,881 (796) - 100% 14,159 (796) 100% 14,442 (796) 100% 14,731 (796) 100% 15,026 (796) - 100% 15,326 (796) 100% 15,633 (796) 100% 15,945 (796) 100% 16,264 (796) 100% 16,590 (796). 100% 16,921 (796) 100% 17,260 (796) 100% 17,605 (796) 100% 17,957 (796) 100% 18,316 (796) 100% 18,683 (796) 100% 19,056 (796) 100% 19,437 (796) Tollll Prepered U,.EhiMr &~,Inc. Estfmatn Only Pt...,!'l ValUe From OI.IOtl , % 11,321 5,661 (20) (564) 5,661 (20) (564) 11, % 15,458 7,729 (28) (770) 7,729 (28) (770) 11, % 15,789 7,895 (28) (787) 7,895 (28) (787) 11, % 16,127 8,063 (29) (803) 8,063 (29) (803) 12, % 16,471 8,235 (30) (821) 8,235 (30) (821) 12, % 16,822 8,411 (30) (838) 8,411 (30) (838) 12, % 17,180 8,590 (31) (856) 8,590 (31) (866) 12, % 17,546 8,773 (32) (874) 8,773 (32) (874) 13, % 17,919 8,959 (32) (893) 8,959 (32) (893) 13, % 18,299 9,149 (33) (912) 9,149 (33) (912) 13, % 18,686 9,343 (34) (931) 9,343 (34) (931) 13, % 19,082 9,541 (34) (951) 9,541 (34) (951) 14, % 19,485 9,743 (35) (971) 9,743 (35) (971) 14, % 19,897 9,948 (36) (991) 9,948 (36) (991) 14, % 20,317 10,158 (37) (1,012) 10,158 (37) (1,012) 15, % 20,745 10,372 (37) (1,034) 10,372 (37) (1,034) 15, % 21,181 10,591 (38) (1,055) 10,591 (38) (1,055) 15, % 21,627 10,813 (39) (1,077) 10,813 (39) (1,077) 16, % 22,081 11,041 (40) (1,100) 11,041 (40) (1,100) 16, % 22,545 11,272 (41) (1,123) 11,272 (41) (1,123) 16, % 23,017 11,509 (41) (1,147) 11,509 (41) (1,147) 17, % 23,499 11,750 (42) (1,171) 11,750 (42) (1,171) 17, % 23,991 11,996 (43) (1,195) 11,996 (43) (1,195) 17, % 24,493 12,246 (44) (1,220) 12,246 (44) (1,220) 18, % 25,005 12,502 (45) (1,246) 12,502 (45) (1,246) 18, % 25,526 12,763 (46) (1,272) 12,763 {46l {1,2n1 514,HO (1.151) (51,228} PNStnl Valuo Rata '5.26'.4 2A1.2a ~ /01/ /17 5,076 4, /01/17 5,076 9, /01/18 6,931 14, /01/18 6,931 20, /19 7,080 26, /19 7,080 32, ,231 37, / ,231 43, /21 7,385 48, /01/21 7,385 53, /01/22 7,543 59, / ,543 64, ,703 69, ,{)1/23 7,703 74, / ,867 79, ,{)1/24 7,867 83, / ,034 88, / ,034 93, ,205 98, ,{)1/26 8, , ,{)1/27 8, ,074 1D , , /28 8, , ,{)1/28 8, , /29 8, , ,{)1/29 8, , ,{)1/30 8, , /30 8, , /01/31 9, , /31 9, , /32 9, , /01/32 9, , /01/33 9, , /01/33 9, , /01/34 9, , , , /01/35 9, , / , , / , ,845 19, /01/ , , / , , / , , /01/38 10, , / , , oiii1ju 10, , /01/39 10, , /01/40 10, , /40 10, , /01/41 11, , /01/41 11, , /01/42 11,4~ 213, /01/ ~ /01/ ~ 216,3811 N:\Mimsct.\Ttw.fRiv.r Falls'l-tou-'ng ~ Eeonomic- R.or..lopm.rrt\TIF\TIF Ol«ricb\TIF Tax Credit 2015\TlF Run-'2015\TIF cutn1fow t.satkln

59 CONTRACT FOR PRIVATE DEVELOPMENT IN DEVELOPMENT DISTRICT NO. 1 AND TAX INCREMENT FINANCING DISTRICT NO THIEF FIVER FALLS, PENNINGTON COUNTY, MINNESOTA between CITY OF THIEF RIVER FALLS, MINNESOTA and D. W. JONES, INC. for the River Point Townhomes Project Dated as of ' This Document Was Drafted By: DORSEY & WHITNEY LLP Suite South Sixth Street Minneapolis, Minnesota

60 THIS CONTRACT FOR PRIVATE DEVELOPMENT (this "Agreement") is entered into as of [ ], 2015, between the CITY OF THIEF RIVER FALLS, a municipal corporation and political subdivision of the State of Minnesota (the "City"), and D.W. JONES, INC., a [ ] corporation ("Developer"). WITNESSETH THAT, in the joint and mutual exercise of their powers, and in consideration of the mutual covenants herein contained, the parties hereto recite and agree as follows: Section 1. Recitals Designation of Development District and Approval of Modification to the Development Program. The City has designated a development district in the City denominated Development District No. 1 (the "Development District") and has approved a modification to the development program for the Development District (the "Development Program") pursuant to and in accordance with Minnesota Statutes ("M.S."), Sections through , as amended (the "Act") Creation of the Tax Increment Financing District. The City has established Tax Increment Financing District No (the "District") within the Development District and authorized the financing of the Development Program as it relates to the District pursuant to a Tax Increment Financing Plan (the "Financing Plan") pursuant to and in accordance with M.S., Sections through , as amended (the "Tax Increment Financing Act") Implementation. The City Council of the City (the "City Council") has authorized and directed the officers of the City to take all actions necessary to implement and carry out the Development Program, subject only to such approval by the City Council as may be required by the Act. The Development Program and the Financing Plan propose that the City expend available tax increment to finance certain capital and administrative costs of the Development District as described therein in respect of the District (including the activities described in this Agreement) or reimburse amounts expended by others for such costs Public Improvements. The City has determined that, in order to accomplish the purposes specified in and to carry out the portion of the Development Program relating to the property to be developed or redeveloped by Developer, it is necessary and desirable for the City to reimburse Developer for certain costs to be incurred and paid by Developer in connection with the development of certain property located in Pennington County, Minnesota, described on Exhibit A hereto (the "Development Property"). The development activities comprise land/building acquisition and other qualifying public improvements and administration costs as described in Exhibit B hereto (the "Public Improvements"), which Public Improvements will facilitate the construction of a housing project comprised of a 25-unit multi-family rental housing development of which 20% of the units will be occupied by persons at or below 50% of the area median income (the "Project") on the Development Property. 60

61 1.05. Original Tax Capacity; Tax Increment. Upon certification of the original net tax capacity of the District, the tax capacity of all taxable property (including the Development Property) in the District is estimated to be $1,326. The net tax capacity of all taxable property in the District as determined for each year during the existence of the District, less the Original Tax Capacity, as adjusted pursuant to M.S., Section , Subds. 1 and 4, shall be known as the "Captured Tax Capacity." The ad valorem taxes derived from such property, by applying the lesser of (i) the aggregate tax rate levied by all governmental entities having authority to levy taxes on such property or (ii) the original local tax rate, within the meaning of M.S., Section , Subd. 1a, to the Captured Tax Capacity, less such amount required to be paid to any school district pursuant to M.S., Section , Subd. 10, or to any other taxing jurisdiction shall be known as the "Tax Increment." As hereinafter provided, the City will apply the Tax Increment derived from the District (computed in accordance with M.S., Section , or its successor) to pay or reimburse the City for administrative expenses relating to the District to the extent permitted by the Tax Increment Financing Act and to reimburse Developer and the City, with interest, for the costs of the Public Improvements Developer. For purposes of this Agreement, the term "Developer" includes D.W. Jones, Inc., its permitted successors and assigns hereunder, and any person or entity to whom the Development Property or any of its rights hereunder are transferred or assigned, as hereinafter permitted. Section 2. Representations and Warranties City Representations. The City hereby represents that the City is authorized by law to enter into this Agreement and to carry out its covenants and agreements hereunder. The City has designated the Development District and has adopted the Development Program in accordance with the provisions of the Act and has created the District and adopted the Financing Plan in accordance with the provisions of the Tax Increment Financing Act Developer Representations. Developer hereby represents and agrees as follows: (a) Developer is a [ ] corporation and is duly qualified to do business in the State of Minnesota. Developer has the power to enter into this Agreement and has duly authorized, by all necessary corporate action, the execution and delivery of this Agreement. (b) 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 prohibited or limited by, conflicts with or results in a breach of, the terms, conditions or provisions of the agreement establishing and organizing Developer or any corporate restriction or any evidences of indebtedness, agreement or instrument of whatever nature to which Developer is now a party or by which it is bound, or constitutes a default under any of the foregoing. 2 61

62 (c) Developer will, subject to Unavoidable Delays (as hereinafter defined), construct the Project and, so long as it shall retain ownership thereof, it shall operate, maintain and preserve the Project in accordance with the terms of this Agreement, the Development Program, the Financing Plan and all applicable local, state and federal laws and regulations. (d) At such time or times as may be required by law, Developer will have complied with all local, state and federal environmental laws and regulations applicable to the Development Property, the Public Improvements and the Project, and will have obtained any and all necessary environmental reviews, licenses and clearances. Developer has not received notice or communication from any local, state or federal official indicating that the activities of Developer may be or will be in violation of any environmental law or regulation. Developer is not aware of any facts the existence of which would cause Developer to be in violation of any local, state or federal environmental law, regulation or review procedure applicable to the Development Property, the Public Improvements or the Project, or which would give any person a valid claim under the Minnesota Environmental Rights Act. (e) Developer will obtain, in a timely manner, all required permits, licenses and approvals, and will meet, in a timely manner, all requirements of all local, state and federal laws and regulations which must be obtained or met in connection with the Project. Without limitation to the foregoing, Developer will request and seek to obtain from the City all necessary variances, conditional use permits and zoning changes. (f) Developer would not undertake the construction of the Project or develop the Development Property without the assistance to be provided by the City pursuant to this Agreement and the Financing Plan. No property other than the housing units comprising the Project is expected to be developed in the District. (g) No member of the governing body of the City or any other officer of the City has any direct or indirect financial interest in Developer, the Development Property or the Project. Section 3. Use. Ownership of Development Propetty; Restrictions Use of Development Property. Developer's use of the Development Property shall be subject to and in compliance with all of the conditions, covenants, restrictions and limitations imposed by this Agreement, the Restrictions (as defined below) and all applicable laws, ordinances and regulations Ownership of Development Property. Developer hereby represents and warrants that, as of the date hereof, Developer is the owner in fee simple of the Development Property, and there are no liens, defects or other encumbrances upon title to the Development Property that would hinder the development of the Development Property by Developer as contemplated by this Agreement Declaration of Restrictive Covenants. Developer shall prepare, execute, and record on the title to the Development Property, within one business day of the execution 3 62

63 of this Agreement, a Declaration of Restrictive Covenants, in form approved by the City, which includes the restrictions set forth on Exhibit A-2 (the "Restrictions") Compliance With Income and Rent Requirements. Developer covenants that 20% of the units will be occupied by persons at or below 50% of the area median income (the "Low Income Units"). Developer further covenants that the Low Income Units will be "rent restricted" within the meaning of Section 42(g)(2) of the Internal Revenue Code of 1986, as amended. On or before February 1 each year during the term of this Agreement, Developer shall submit to the City a Compliance Certificate covering the 12-month period preceding the date of the Compliance Certificate certifying that the Project was in compliance with the provisions of this Section 3.04 during such period, and shall submit to the City such additional information relating to the incomes of the occupants of the Low Income Units and rents charged for such Low Income Units as the City may reasonably require to evidence compliance with the provisions of this Section 3.04 and the relevant provisions of the Tax Increment Financing Act Business Subsidy Act. The tax increment financing assistance provided by the City is not a "business subsidy" because it is "assistance for housing" as provided in M.S., Section , Subd. 3 (7). Therefore, the provisions of M.S., Sections through are not applicable. Section 4. Construction of Project Construction Plans. Developer shall make available Construction Plans for the Project to the City prior to the construction of the Project. The Construction Plans shall provide for construction of the Project in conformity with this Agreement and all applicable state and local laws and regulations. The City shall approve the Construction Plans in writing if, in the reasonable discretion of the City, the Construction Plans: (a) conform to the terms and conditions of this Agreement; (b) conform to all applicable federal, state and local laws, ordinances, rules and regulations; and (c) no Event of Default has occurred. No approval by the City shall relieve Developer of the obligation to comply with the terms of this Agreement, applicable federal, state and local laws, ordinances, rules and regulations, or to properly construct the Project. No approval by the City shall constitute a waiver of an Event of Default. Any disapproval of the Construction Plans shall set forth the reasons therefor and shall be made within 30 days after the date of their receipt by the City. If the City rejects the Construction Plans, in whole or in part, Developer shall submit new or corrected Construction Plans within 30 days after written notification to Developer of the rejection. The provisions of this Section relating to approval, rejection and resubmission of corrected Construction Plans shall continue to apply until the Construction Plans have been approved by the City Undertaking of Public Improvements. (a) Subject to Unavoidable Delays, Developer will commence the Project by August 1, 2015 and will complete the Project, or cause the Project to be completed substantially, in accordance with the terms of this Agreement by December 31,

64 (b) Upon approval by the City of the Construction Plans, Developer shall promptly begin the Project and diligently prosecute to completion the development of the Development Property in accordance with the requirements of this Agreement. Developer shall make reports, in such detail and at such times as may reasonably be requested by the City, as to the actual progress of Developer with respect to the Project. (c) Developer shall not interfere with, or construct any improvements over, any public street or utility easement without the prior written approval of the City. All connections to public utility lines and facilities shall be subject to approval of the City and any private utility company involved. All street and utility installations, relocations, alterations and restorations shall be at Developer's expense and without expense to the City. Developer at its own expense shall replace any public facilities or utilities damaged during the Project by Developer or its agents or by others acting on behalf of or under their direction or control of Developer Certificate of Occupancy; Certificate of Completion. (a) Developer shall, within 90 days of the issuance by the City of a certificate of occupancy with respect to the Project, provide the City with documentation, audited by an independent accountant, reflecting Developer's actual expenses and revenues and demonstrating Developer's return on its investment in the Project. (b) Thereafter, the City will furnish Developer with an appropriate Certificate of Completion, substantially in the form of Exhibit E hereto, as conclusive evidence of satisfaction and termination of the agreements and covenants of this Agreement with respect to the obligations of Developer to construct the Project. Any Certificate of Completion furnished by the City shall not constitute evidence of compliance with or satisfaction of any obligation of Developer to any mortgagee. (c) If the City shall refuse or fail to provide a Certificate of Completion, the City shall, within 30 days after Developer provides the certificate referenced in Section 4.03(b), provide Developer with a written statement specifying in what respects Developer has failed to complete the Project in accordance with this Agreement, or is otherwise in default, and what measures or acts will be necessary for Developer to obtain the Certificate of Completion Progress Reports. Until a Certificate of Completion is issued, Developer shall make, in such detail as may reasonably be required by the City, and forward to the City, on a monthly basis, a written report as to the actual progress of work on the Project Access to Development Property. Developer agrees to permit the City and any of its officers, employees or agents access to the Development Property for the purpose of inspection of all work being performed in connection with the Project; provided that the City shall have no obligation to inspect such work Other Developer Obligations. (a) Apart from the assistance to be provided under this Agreement, Developer shall pay all charges and fees due with respect to real estate developments and allocable to the Development Property under City ordinances and the City Code, including but not limited to special assessments for local improvements, sewer and 5 64

65 water use charges, building permit fees, plat fees, inspection fees, storm water fees and the like. In addition, Developer shall be responsible for the payment of connection charges for water and sewer connections to the Development Property. (b) Developer shall also pay, upon demand and reasonable itemization thereof, all costs reasonably incurred by the City to third parties directly relating to this Agreement and with respect to the Development Property, the Public Improvements, and the Project, and all costs of City services allocable to the foregoing. (c) Developer acknowledges that the City has incurred and will continue to incur certain costs and expenses for services of the City's attorneys and consultants retained for the purposes of preparing this Agreement, reviewing the proposed District, and preparing or reviewing the Development Program and the Financing Plan; and for other purposes relating to the District. Developer agrees to pay to the City the amount of such attorneys' and consultants' costs and expenses. Within 30 days after receipt of a request by the City, accompanied by invoices received from City attorneys and consultants clearly showing the work done and the basis of the fees and charges billed, Developer shall pay to the City the amount of attorneys' and consultants' costs incurred by the City. (d) Developer shall provide to the City annual audited financial reports, beginning with the fiscal year ending December 31, 2015 no later than April 1st of each year. Section 5. Tax Increment Financing of Public Improvements Limited Revenue Tax Increment Note To Pay Public Development Costs. Developer has agreed to and shall be responsible to pay all of its respective costs of the Project. However, the City, in order to encourage Developer to proceed with the construction of the Project, is willing to finance the Public Development Costs. The City agrees that it will make payments pursuant to a limited revenue tax increment note (the "Note"), the form of which is attached hereto as Exhibit F, in a principal amount sufficient to pay the Public Development Costs attributable to the Public Improvements as listed on Exhibit B hereto, with the Note to be issued and interest to begin to accrue at such time as the City Engineer has confirmed in writing to the City that the Public Improvements have been completed, said payments of principal and interest to be made on the dates (the "Payment Dates") and in the amounts set for such payments in Exhibit D hereto, but subject to the following terms and conditions, including adjustment as provided in Section 5.01(c) below: (a) Notwithstanding the Payment Dates provided in Exhibit D, no payments shall be made by the City to Developer unless and until: (i) the City Engineer has confirmed in writing to the City that the Public Improvements have been completed; (ii) Developer has submitted documentation, audited by an independent accountant as required by Section 4.03(a) hereof; and (iii) the Certificate of Completion has been issued as contemplated in Section 4.03(b) hereof. (b) The City will apply the Tax Increment first to pay any administrative expenses relating to the Development Property to the extent permitted by the Tax 6 65

66 Increment Act and to the extent that such expenses have not been paid or reimbursed to the City by Developer. Any Tax Increment remaining after the payment of any administrative expenses then due and owing (the "Available Tax Increment") shall be paid to Developer for reimbursement of the Public Development Costs plus interest as provided above on the Payment Dates. The maximum principal amount of Tax Increment to be paid to Developer shall be the actual amount of Public Development Costs incurred by Developer, as reflected in the audit required by Section 4.03(a) hereof. (c) If, upon completion of the Public Improvements, the total of the actual Public Development Costs are lower than the total of the Public Development Costs shown in Exhibit B and the budget included as part of the initial Exhibit D, then the principal amount to be reimbursed to Developer hereunder shall be reduced to the actual total cost amount of the Public Development Costs and a new Exhibit D shall be prepared and substituted, which will amortize said actual cost over the remaining Payment Dates such that amortized payments of principal and interest in each year thereafter are equal, as nearly as practicable, such principal to bear interest at the rate of 5.25% per annum. In addition, in the event the time for distribution of property tax revenues to the City by the County shall be modified from the dates presently in force, the parties shall amend Exhibit D to the extent necessary to conform with the intention of the parties that the Payment Dates shall fall approximately 30 to 45 days after the expected dates upon which the City receives its major property tax distributions from the County. Furthermore, to the extent that the documentation audited by an independent accountant and provided by Developer to the City pursuant to Section 4.03(a) hereof demonstrates that Developer has received a return on its investment in the Project in excess of 10%, then the principal amount to be reimbursed to Developer hereunder shall be reduced such that Developer realizes a return on its investment in the Project in an amount equal to 10% of Developer's investment, and a new Exhibit D shall be prepared and substituted, which will amortize said reduced principal amount over the remaining Payment Dates such that amortized payments of principal and interest in each year thereafter are equal, as nearly as practicable, with such principal to bear interest at the rate of 5.25% per annum. (d) The City shall be obligated to make the payments to Developer required pursuant to this Section 5 only from and to the extent of the Available Tax Increment actually received from the Tax Increment District for any tax year, and such payments shall never be considered to be a general obligation or indebtedness of the City; provided that the amount required to be paid by the City to Developer on any Payment Date shall not exceed the amount set forth in Exhibit D, as amended. If, on any Payment Date, the amount of the Available Tax Increment available to the City from the Tax Increment District and to be paid to Developer under Section 5.01 is not sufficient to pay the installment then due Developer under this Section 5.01 in full, the funds available shall be applied first to interest and then to principal then due. To the extent that an installment of principal or interest to be paid under this Section 5.01 is not paid on a Payment Date because the amount of Available Tax Increment under Section 5.0l(b) is insufficient therefor, such installment shall continue to be an obligation of the City under the terms of this Agreement, but shall not bear interest from and after said Payment Date, and shall be paid, subject to the provisions of Section 5.0l(e) hereof, only from Available Tax Increment actually received and available therefor under Section 5.01(b) hereof on 7 66

67 the next subsequent Payment Dates, after the payment of the installment of principal and interest payable on said subsequent Payment Date. Upon 30 days' written notice to Developer, the City may prepay all or a portion of the outstanding principal balance due to Developer pursuant to this Section 5.01 and Exhibit D, without penalty, on any date at a prepayment price equal to the outstanding principal balance to be prepaid plus accrued interest to the prepayment date. If a partial prepayment is made, the prepayment shall be applied to the last maturing installments of principal and the semiannual payments required under this Section 5.01 and Exhibit D shall not otherwise be reduced. Subsequent to any partial prepayment, a revised Exhibit D shall be prepared and substituted Assignment of Note. The Note shall be not assignable nor transferable without the prior written consent of the City, which consent may be withheld by the City in its sole discretion Restrictions on Conveyance. Until the City issues the Certificate of Completion, Developer will not make or suffer to be made, any sale, assignment, conveyance, lease, mortgage, encumbrance, lien or transfer in any other form, of this Agreement or the Development Property, or any part thereof, or any interest therein, or contract or agree to do any of the same, without the prior written consent of the City, except for any mortgage, lien or encumbrance securing the obligations of Developer with respect to indebtedness it incurs to finance all or a portion of the Project or the Public Improvements Notice of Default. Whenever the City shall deliver any notice or demand to Developer with respect to any breach or default by Developer in its obligations or covenants under this Agreement, the City shall at the same time forward a copy of such notice or demand to each holder of any permitted mortgage, lien or other similar encumbrance at the last address of such holder shown in the records of the City. Each such holder shall have the right, at its option, to cure or remedy such breach or default and to add the cost thereof to the mortgage debt and the lien of its mortgage; provided that if the breach or default is with respect to construction of the Project, nothing contained in this Agreement shall be deemed to permit or authorize such holder, either before or after foreclosure or action in lieu thereof, to undertake or continue the construction or completion of the Project without first having expressly assumed the obligation to the City, by written agreement satisfactory to the City, to complete the construction of the Project in accordance with the plans and specifications therefor and this Agreement. Any such holder who shall properly complete the construction of the Project shall be entitled, upon written request made to the City, to a certification or certifications by the City to such effect in the manner provided in Section Damage or Destruction. Upon any damage or destruction of the Project by fire or other casualty, Developer shall within 120 days after such damage or destruction, commence the process required to repair, reconstruct and restore the damaged Project to substantially the same condition or utility value as existed prior to the event causing such damage or destruction and shall diligently pursue such repair, reconstruction and restoration. 8 67

68 Section 6. Prohibitions Against Assignment and Transfer Transfer of Property and Assignment. Prior to the issuance of a Certificate of Completion and except as hereinafter provided, Developer has not made and will not make, or suffer to be made, any total or partial sale, assignment, conveyance, lease, or other transfer, 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, without the prior written approval of the City. The City shall be entitled to require as conditions to any such approval that: (i) the proposed transferee have the qualifications and financial responsibility, as reasonably determined by the City, necessary and adequate to fulfill the obligations undertaken in this Agreement by Developer; and (ii) the proposed transferee, by recordable instrument satisfactory to the City shall, for itself and its successors and assigns, assume all of the obligations of Developer under 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 City of or with respect to any rights or remedies or controls provided in or resulting from this Agreement with respect to the Development Property and the completion of the Project that the City would have had, had there been no such transfer or change. There shall be submitted to the City for review all legal documents relating to the transfer. In the absence of specific written agreement by the City to the contrary, no such transfer or approval by the City thereof shall be deemed to relieve Developer, or any other party bound in any way by this Agreement or otherwise with respect to the completion of the Project, from any of its obligations with respect thereto. In the absence of specific written agreement by the City to the contrary, no such transfer or approval by the City 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 completion ofthe Project, from any of their obligations with respect thereto. Section 7. Indemnity; Events of Default; Fees Indemnity. Developer shall indemnify, defend and save harmless the City, its governing body and its officers, agents, employees and contractors from any and all claims or causes of action and all costs and expenses, including all attorneys' fees, in any way resulting from or arising out of, or allegedly resulting from or arising out of, the condition or use of the Development Property or the undertaking and completion of the Project, including operations of contractors and acts or omissions of employees or agents of contractors, or otherwise in connection with this Agreement Events of Default. 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 (unless the context otherwise provides), any one or more of the following events which occurs and continues for more than 30 days after notice by the defaulting party of such default (and the term "default" shall mean any event which would with the passage of time or giving of notice, or both, be an Event of Default hereunder): (a) Failure of Developer to construct or cause to be constructed the Project as required under this Agreement; 9 68

69 (b) Failure by Developer to observe and perform, or breach by Developer of, any other covenant, agreement, condition or obligation on its part to be observed and performed under this Agreement; (c) Filing of any voluntary petition in bankruptcy or similar proceedings by Developer; general assignment for the benefit of creditors made by Developer or admission in writing by Developer of inability to pay its debts generally as they become due; or filing of any involuntary petition in bankruptcy or similar proceedings against Developer which are not dismissed or stayed within 60 days; and (d) Failure of Developer to pay any taxes on the Development Property as they become due Remedies on Default. In the event the City desires to exercise any of its rights or remedies as provided herein or otherwise available to the City at law or in equity, the City shall first provide written notice to Developer setting forth with specific particularity the Event of Default and the action required to cure or remedy the same (the "Default Notice"). Developer shall have 30 days from receipt of a Default Notice to cure or remedy the Event of Default specified in the Default Notice, or such longer period as may be reasonably required to complete the cure as soon as reasonably possible under the circumstances. If, following Developer's receipt of a Default Notice, Developer does not cure or remedy the Event of Default therein specified within the time provided above, the City may take any one or more of the following actions at any time prior to Developer's curing or remedying the Event of Default: (a) Suspend its performance under this Agreement until it receives assurances from Developer, deemed adequate by the City, that Developer will cure its default and continue its performance under this Agreement. (b) (c) Terminate all rights of Developer under this Agreement and the Note. Withhold the Certificate of Completion for the Project. (d) Take whatever action at law or in equity may appear necessary or desirable to the City to enforce performance and observance of any obligation, agreement, or covenant of Developer under this Agreement No Remedy Exclusive. No remedy herein conferred upon or reserved to the City or to Developer 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. In order to entitle the City or Developer to exercise any remedy reserved to them, it shall not be necessary to give notice, other than such notice as may be required under this Agreement

70 7.05. Waivers. All waivers by any party to this Agreement shall be in writing. If any provision of this Agreement is breached by any party and thereafter waived by another 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 8. Additional Provisions Insurance. Developer shall keep and maintain the Development Property and improvements thereon at all times insured against such risks and in such amounts, with such deductible provisions, as are customary in connection with facilities of the type and size comparable to the improvements, and Developer shall carry and maintain, or cause to be carried and maintained, and pay or cause to be paid timely the premiums for direct damage insurance covering all risks of loss on a replacement cost basis in an amount equivalent to the full insurable value thereof. "Full insurable value" shall include the actual replacement cost of the Improvements, exclusive of foundations and footings, without deduction for architectural, engineering, legal or administrative fees or for depreciation. Insurance in effect with respect to any portion of the Project prior to the issuance by the City of a Certificate of Completion with respect thereto shall be maintained on an "all-risk" builder's risk basis during the course of construction. The policies required by this Section 8.01 shall be subject to a no-coinsurance clause or contain an agreed amount clause, and may not contain a deductibility provision exceeding $10,000. Policies of insurance required by this Section 8.01 shall assure and be payable to Developer, and shall provide for release of insurance proceeds to Developer for restoration of loss. Developer shall furnish the City certificates showing the existence of such insurance. Developer shall annually file with the City a schedule describing all such policies in force, including the types of insurance, names of insurers, policy numbers, effective dates, terms of duration or any other information the City deems pertinent. Such list shall be accompanied by a certificate executed by Developer stating that, to the best of the knowledge of Developer, insurance on the improvements then in force complies with this Section Conflict of Interests; City Representatives Not Individually Liable. No member, official, employee, or consultant or employee of a consultant of the City shall have any personal interest, direct or indirect, in this Agreement, nor shall any such member, official, consultant or the consultant's employees or employee participate in any decision relating to this Agreement which affects his or her personal interests or the interests of any corporation, partnership, or association in which he or she is directly or indirectly interested. No member, official, consultant or consultant's employee, or employee of the City shall be personally liable to Developer, or any successor in interest, in the event of any default or breach by the City or for any amount which may become due to Developer or successors or on any obligations under the terms of this Agreement Equal Employment Opportunity. Developer, for itself and its successors and assigns, agrees that during the construction of the Project it will comply with any applicable affirmative action and nondiscrimination laws or regulations Restrictions on Use. Developer agrees for itself, and its successors and assigns, and every successor in interest to the Development Property, or any part thereof, that 11 70

71 Developer, and such successors and assigns, shall devote the Development Property to, and only to and in accordance with, the uses specified in the Development Program, this Agreement and other agreements entered into between Developer and the City, and shall not discriminate upon the basis of race, color, creed, religion, national origin, sex, marital status, disability, status with regard to public assistance, sexual orientation, and familial status 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 Rights Cumulative. The rights and remedies of the parties of this Agreement, whether provided by law or by this Agreement, shall be cumulative, and the exercise by either party of any one or more of such remedies shall not preclude the exercise by such party, at the same or different times, of any other remedy for the same default or breach or of any of its remedies for any other default or breach ofthe party. No waiver made by either such party with respect to the performance or the manner or time thereof, of any obligation under this Agreement, shall be considered a waiver with respect to the particular obligation of the other party or a condition to its own obligation beyond those expressly waived in writing and to the extent thereof, or a waiver in any respect in regard to any other rights ofthe party making the waiver of any obligations of the other party. Delay by a party hereto instituting or prosecuting any cause of action or claim hereunder shall not be deemed a waiver of any rights hereunder Unavoidable Delays. Wherever used in this Agreement, the term "Unavoidable Delays" shall mean a delay resulting from strikes, work stoppages, boycotts, other labor troubles, unavailability or delay in delivery of materials, unusually severe or prolonged bad weather, acts of God, fire or other casualty, litigation commenced by third parties which, by injunction or other similar judicial action or by the exercise of reasonable discretion, directly or indirectly results in delays, or acts of any federal, state or local governmental unit (other than the City) which directly or indirectly result in delays, or acts of the City where it is required pursuant to this Agreement to act by a specified date or within a specified period and fails to do so; provided that any delay in obtaining financing by Developer shall not constitute an Unavoidable Delay Titles of Articles and Sections. Any titles of the several parts, Articles, and Sections of this Agreement are inserted for convenience of reference only and shall be disregarded in construing or interpreting any of its provisions Notices and Demands. Except as otherwise expressly provided in this Agreement, a notice, demand, or other communication under this Agreement by any party to another party shall be sufficiently given or delivered if it is dispatched by registered or certified mail, postage prepaid, return receipt requested, or delivered personally as follows: (a) in the case of Developer, addressed to or delivered personally to: D.W. Jones, Inc

72 (b) in the case of the City, addressed or delivered personally to: City of Thief River Falls City Hall 405 Third Street East, P.O. Box 528 ThiefRiver Falls, Minnesota Attn: City Administrator or at such other address with respect to any such party as that party may, from time to time, designate in writing and forward to the other party as provided in this Section Counterparts. This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same instrument Binding Effect. This Agreement shall inure to the benefit of and shall be binding upon the City and Developer and their respective successors and assigns Severability. In the event any provision of this Agreement shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof Amendments, Changes and Modifications. This Agreement may be amended or any of its terms modified only by written amendment authorized and executed by the City and Developer, except as otherwise specifically provided herein as to Exhibit D hereto Further Assurances and Corrective Instruments. The City and Developer agree that they will, from time to time, execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered, such supplements hereto and such further instruments as may reasonably be required for correcting any inadequate or incorrect description of the Development Property or the Public Improvements or for carrying out the expressed intention of this Agreement Captions. The captions or headings in this Agreement are for convenience only and in no way define, limit or describe the scope of intent of any provisions or Sections of this Agreement Applicable Law. This Agreement shall be governed by and construed in accordance with the laws ofthe State of Minnesota without giving effect to the conflicts-of-laws principles thereof

73 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first above written. CITY OF THIEF RIVER FALLS, MINNESOTA By Mayor And City Administrator STATE OF MINNESOTA ) ) ss. COUNTY OF PENNINGTON ) The foregoing instrument was acknowledged before me on this day of _ ~ 2015, by Brian Holmer, the Mayor, and Larry Kruse, the City Administrator, ofthe City of Thief River Falls, a Minnesota municipal corporation, on behalf of the corporation. IN WITNESS WHEREOF, I have set my hand and my official seal this day of -----~ Notary Public 73

74 D.W. JONES, INC. By: Name: Its: STATE OF MINNESOTA ) ) ss. COUNTY OF PENNINGTON ) The foregoing instrument was acknowledged before me on this _ day of, 2015, by, the ofd.w. Jones, Inc., a [ 1 corporation, on behalf of the corporation. IN WITNESS WHEREOF, I have set my hand and my official seal this day of '2015. Notary Public 74

75 EXHIBIT A Development Property The real property and interests in such property located in the County of Pennington, State of Minnesota and described as follows: Parcel Numbers Address Owner th St. NE, Thief River Falls, MN A-1 75

76 EXHIBIT A-2 Covenants and Restrictions 1. The Development Property shall not be exempt from real estate taxes notwithstanding the ownership or use of the land and, specifically, shall not be a part of a job opportunity building zone or other tax free zone under local or state law. 2. The Development Property shall not be sold, transferred, conveyed or leased to any of the following parties: (a) (b) (c) (d) (e) An institution of purely public charity; A church or ancillary tax -exempt housing; A public hospital; A public school district; An organization exempt from federal income taxes pursuant to Section 501 ( c )(3) of the Internal Revenue Code of 1986, as amended, if as a result of such sale, transfer, conveyance or lease the Development Property would become exempt from real estate taxes; or (f) A Minnesota cooperative association organized under M.S., Section and for the purpose of complying with the provisions of M.S., Section , Subd. 3, or any other party that would cause the Development Property to be valued and assessed for real estate tax purposes at a lower percentage of its market value than the Development Property is then being valued and assessed for real estate tax purposes or would result in the Development Property becoming exempt from real estate taxes. 3. The Development Property shall not be used for any ofthe following purposes: (a) (b) (c) (d) (e) The operation of a public charity; A church or house of worship; The operation of a public hospital; The operation of a public schoolhouse, academy, college, university or seminary of learning; or Any other use which would cause the Development Property to be valued and assessed for real estate tax purposes at a lower percentage of its market value than the Development Property is then being valued and 76

77 assessed for real estate tax purposes or would result in the Development Property becoming exempt from real estate taxes. 4. The Development Property shall be devoted to uses consistent with this Agreement. 5. The Development Property owner shall: (a) (b) (c) not discriminate on the basis of race, color, creed, religion, national origin, sex, marital status, disability, status with regard to public assistance, sexual orientation, or familial status in the sale, lease, use or occupancy of the Development Property, the Public Improvements or any part thereof; develop the Development Property in an orderly manner consistent with the respective City' zoning ordinances and comprehensive plan; and develop the Development Property and the Project for persons of low and moderate income and ensure that 20% of the units will be occupied by persons at or below 50% of the area median income. 6. The covenants and restrictions herein contained shall run with the title to the Development Property and shall be binding upon all present and future owners and occupants of the Development Property; provided, however, that the covenants and restrictions herein contained shall inure only to the benefit of the City and may be released or waived in whole or in part at any time, and from time to time, by the sole act of the City, and variances may be granted to the covenants and restrictions herein contained by the sole act of the City. These covenants and restrictions shall be enforceable only by the City, and only the City shall have the right to sue for and obtain an injunction, prohibitive or mandatory, to prevent the breach of the covenants and restrictions herein contained, or to enforce the performance or observance thereof. 7. The covenants and restrictions herein contained shall remain in effect until the payment in full of principal of, and interest on the limited revenue tax increment note issued in accordance with this Agreement, and thereafter shall be null and void. 77

78 EXHIBITB Public Improvements & Public Development Costs Public Improvement Land/Building Acquisition Other Qualifying Improvements Total Public Development Cost Up to $375,000 Up to $ Up to $694,646 B-1 78

79 EXHIBITC Project The construction of a 24-unit multi-family use rental development in the City of Thief River Falls. The units are designed to be affordable for persons of low and moderate income, and 20% of the units will be occupied by persons at or below 50% of the Pennington County area medium income. Construction is anticipated to begin in Spring 2015 and to be completed in C-1 79

80 EXHIBITD Payment Schedule CITY OF THIEF RIVER FALLS, MINNESOTA- Housing TIF District No River Point Townhomes Project D-1 80

81 EXHIBITE Form of Certificate of Completion CERTIFICATE OF COMPLETION WHEREAS, D.W. JONES, INC., a [ ] corporation (the "Owner"), is the owner of the property in the County of Pennington and State of Minnesota described on Exhibit I hereto and made a part hereof (the "Development Property"); and WHEREAS, the Development Property is subject to the provisions of a certain Contract for Private Development in Development District No. 1 and Tax Increment Financing District No. 1-11, dated as of, 2015 (the "Development Agreement"), between the Owner and the City of Thief River Falls, Minnesota (the "City"); and WHEREAS, the Owner has fully and duly performed all of the covenants and conditions of Owner under the Development Agreement with respect to the construction of the Project (as defined in the Development Agreement) on the Development Property. NOW, THEREFORE, it is hereby certified that all requirements of the Owner under the Development Agreement with respect to the construction of the Project on the Development Property have been completed, and this instrument is to be conclusive evidence of the satisfactory termination of the covenants and conditions of the Development Agreement as they relate to the construction of the Project on the Development Property. Dated this day of, CITY OF THIEF RIVER FALLS, MINNESOTA By Mayor And City Administrator E-1 81

82 Exhibit I Development Property The real property and interests in such property located in the County of Pennington, State of Minnesota and described as follows: Legal Description Parcel Identification Number

83 EXHIBIT F Form of Limited Tax Increment Revenue Note No. R-1 UNITED STATES OF AMERICA STATE OF MINNESOTA CITY OF THIEF RIVER FALLS LIMITED TAX INCREMENT REVENUE NOTE OF 2015 (River Point Townhomes Project) PRINCIPAL AMOUNT: $192,000 INTEREST RATE: 5.25% The City of Thief River Falls, Minnesota (the "City") acknowledges itself to be indebted and, for value received, hereby promises to pay to D.W. Jones, Inc., or its registered assigns (the "Registered Owner"), but only in the manner, at the times, from the sources of revenue, and to the extent hereinafter provided, the principal amount stated above with interest, from the date hereof, at the rate per annum stated above. Interest on this Note will compound semi-annually. This Limited Tax Increment Revenue Note of 2015 (Tax Increment Financing District No. 1-11) (or "Note") is issued pursuant to the provisions of that certain Development Agreement, dated as of, 2015, as the same may be amended from time to time (the "Development Agreement"), between the City of Thief River Falls, Minnesota (the "City") and D.W. Jones, Inc. ("Developer"). Provided that Developer has submitted evidence to the City that costs of the Public Improvements (as defined in the Development Agreement) have been incurred and paid by Developer as provided in the Development Agreement, the principal and interest amounts due under this Note (the "Note Payment Amounts") shall be payable on August 1, 2017, and on each February 1 and August 1 thereafter to and including February 1, 2043 (or such earlier date upon which the Note Payment Amounts are paid in full), or, if the first should not be a Business Day the next succeeding Business Day (the "Note Payment Dates"). On each Note Payment Date the City shall pay, by check or draft mailed to the person that was the Registered Owner of this Note at the close of the last Business Day preceding such Note Payment Date, the Available Tax Increments (as hereinafter defined) received by the City from the Tax Increment District (as hereinafter defined) since the preceding Note Payment Date or, in the case of the first Note Payment Date, prior to such first Note Payment Date, as provided in the Development Agreement. All payments shall be first applied to interest accrued on the Note and then to the unpaid principal of the Note. The City shall not be required to make any payments on the Note subsequent to February 1, 2043, and any balance of principal and interest remaining unpaid subsequent to the payment made on February 1, 2043 shall be deemed forgiven by Developer. In no event shall the total Note Payment Amounts paid under this Note exceed the actual amount of Public Development Costs incurred by Developer as reflected in the audit required by the Development Agreement, plus interest as provided herein. For purposes hereof, "Business Day" 83

84 means any day except a Saturday, Sunday or a legal holiday or a day on which banking institutions in the City are authorized by law or executive order to close. The Note Payment Amounts due hereon shall be payable solely from a portion of the tax increments, less the City's administrative fee of 10%, from the Development Property within the City's Tax Increment Financing District No (the "Tax Increment District") within its Development District No. 1, which are paid to the City and which the City is entitled to retain pursuant to the provisions of M.S., Sections through , as the same may be amended or supplemented from time to time (the "Available Tax Increments"). This Note shall terminate and be of no further force and effect following the last Note Payment Date defined above, on any date upon which the City shall have cancelled and rescinded the Development Agreement or the Note pursuant to said Development Agreement, or on the date that all principal and interest shall have been paid in full, whichever occurs earliest. The City makes no representation or covenant, express or implied, that the Available Tax Increments will be sufficient to pay, in whole or in part, the amounts which are or may become due and payable hereunder. The City's payment obligations hereunder shall be further conditioned on the fact that no Event of Default under the Development Agreement shall have occurred and be continuing at the time payment is otherwise due hereunder, but such unpaid amounts shall become payable if said Event of Default shall thereafter have been cured; and, further, if pursuant to the occurrence of an Event of Default under the Development Agreement the City elects to cancel and rescind the Development Agreement, the City shall have no further debt or obligation under this Note whatsoever. Reference is hereby made to all of the provisions of the Development Agreement for a fuller statement of the rights and obligations of the City to pay the principal of and interest on this Note, and said provisions are hereby incorporated into this Note as though set out in full herein. This Note is a special, limited revenue obligation and not a general obligation of the City and is payable by the City only from the sources and subject to the qualifications stated or referenced herein. Neither the full faith and credit nor the taxing powers of the City are pledged to the payment of the principal of and interest on this Note and no property or other asset of the City, save and except the above-referenced Available Tax Increments, is or shall be a source of payment of the City's obligations hereunder. This Note is issued by the City in aid of financing a project pursuant to and in full conformity with the Constitution and laws of the State of Minnesota, including M.S., Sections through This Note may be assigned only with the consent of the City, which consent may be withheld in the withheld in the City's sole discretion. In order to assign the Note, the assignee shall surrender the same to the City either in exchange for a new fully registered note or for transfer of this Note on the registration records for the Note maintained by the City. Each permitted assignee shall take this Note subject to the foregoing conditions and subject to all provisions stated or referenced herein. F-2 84

85 IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions, and things required by the Constitution and laws of the State of Minnesota to be done, to have happened, and to be performed precedent to and in the issuance of this Note have been done, have happened, and have been performed in regular and due form, time, and manner as required by law; and that this Note, together with all other indebtedness of the City outstanding on the date hereof and on the date of its actual issuance and delivery, does not cause the indebtedness of the City to exceed any constitutional or statutory limitation thereon. IN WITNESS WHEREOF, the City Council of the City of Thief River Falls has caused this Note to be executed by the manual signatures of the Mayor and the City Administrator and has caused this Note to be dated as of, Mayor City Administrator F-3 85

86 CERTIFICATION OF REGISTRATION It is hereby certified that the foregoing Note, as originally issued on, 2015, was on said date registered in the name of D.W. JONES, INC., and that, at the request of the Registered Owner of this Note, the undersigned has this day registered the Note in the name of such Registered owner, as indicated in the registration blank below, on the books kept by the undersigned for such purposes. NAME AND ADDRESS OF REGISTERED OWNER D.W. Jones, Inc. [ 1 DATE OF REGISTRATION " 2015 SIGNATURE OF SECRETARY F-4 86

87 CITY OF THIEF RIVER FALLS INVESTMENT SUMMARY 04/30/2015 TYPE AND DESCRIPTION MATURITY BANK/BROKER OF SECURITY PAR DATE RBC RBC RBC GE Cap Bank Retaii/RBC Federal Home Loan Mtg Corp Federal Home Loan Bank Federal Home Loan Bank Certificate of Deposit - Brokered $590,000 $500,000 $200,000 $248, Dec Aug Jun Dec-17 American Express Centurion Bank/RBC Certificate of Deposit - Brokered $248, Dec-17 Border State Bank Certificate of Deposit $100, Dec-14 Goldman Sachs Bk USA NY/RBC Certificate of Deposit- Brokered $248, Jan-15 JP Morgan Chase BK NA Columbus Certificate of Deposit - Broke red $245, Feb-19 BMW Bk North America Utah/RBC Certificate of Deposit - Brokered $248, Jun-15 Safra Natl Bk New York NY/RBC Certificate of Deposit - Brokered $249, ct-15 Cardinal Bk Natl Assn VAIRBC Certificate of Deposit- Brokered $249, Feb-16 Cit Bk- Salt Lake City, Utah/RBC Certificate of Deposit - Brokered $248, May-16 Bank Hampton Rds- Norfolk, VAIRBC Certificate of Deposit- Broke red $249, Dec-16 Discover Bk- Greenwood, Dei/RBC Certificate of Deposit - Brokered $247, May-17 Sallie Mae Bk- Murray, Utah/RBC Certificate of Deposit - Brokered $247, Aug-17 Ally Bk Midvale Utah/RBC Certificate of Deposit - Brokered $248, Nov-17 YIELD OR INTEREST RATE 2.00% 1.00% 1.00% 1.45% 1.50% 0.55% 1.50% 1.00% 0.85% 0.80% 0.90% 1.15% 0.80% 1.75% 1.70% 1.40% CURRENT CALL MARKET DATE VALUE 13-Mar-14 $591, Aug-14 $500, Dec-14 $200, Dec-14 $248, Jun-15 $248, Dec-14 $100, Jan-15 $249, Aug-15 $245, Jun-15 $248, ct-15 $249, Feb-16 $249, May-16 $250, Dec-16 $251, May-17 $251, Aug-17 $251, May-15 $248, MONEY MARKET ACCOUNTS Piper Jaffray RBC League of Minnesota Cities League of Minnesota Cities TOTAL INVESTMENTS First American Gov't Obligations Fund US Govt Money Market Fund 4M Money Market Fund 4M Plus Fund 0.10% 0.01% 0.02% 0.05% $4,385, $1,456, $0.02 $3,856, $24, *Interest paid every 6 months J TOTAL MONEY MARKET SAVINGS GRAND TOTAL $5,337' /30/2015 $9,722,634.87