Thief River Falls City Council Agenda Tuesday - July 21, 2020

THIEF RIVER FALLS CITY COUNCIL AGENDA TUESDAY - JULY 21, 2020

COUNCIL CHAMBERS CITY HALL - 405 3Ro STREET EAST 5:30 PM

City of Thief River Falls Mayor Brian Holmer Determination Regarding Conducting Meetings by Telephone or Other Electronic Means - per Directive 2020-6

1. CALL TO ORDER

2. PLEDGE OF ALLEGIANCE

3. ROLL CALL

4. PUBLIC FORUM - Individuals may address tile City Council about any item llOt included on tile regular agellda. A maximum of 5 millutes is allotted for tile public forum. Speakers are requested to dial: 408-418-9388 atld then etlter access code: 623 986 425 (Ifyo u are havillg issues connecting call 218-689-3612), state their name and address for tlte record, and limit their remarks to five minutes. The City Council will not take official action on items discussed at tit is time, witIt the exception ofr eferral to staffo r a committee, board or commission for a future report.

5. PRESENTATIONS/PROCLAMATIONS/PUBLIC INFORMATION ANNOUNCEMENTS

6. 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.

7. CONSENT AGENDA - These items are considered routine itz nature and are approved with one motion wit/tout 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 motion to approve tlte Consent Agenda.

7.01 Approval of June 30, 2020 Committee of the Whole Proceedings and July 7, 2020 Co unc ii Proceedings (page 3-13) 7.02 City of Thief River Falls Bills and Disbursements (see attachment) 7.03 Approval of election judges for the 2020 elections (page 14) 7.04 Approval to revise chemical bid specifications (page 15-16) 7.05 Call for hearing to consider the vacation of Nelson Ave from I oth to 11 th Street (page 17-22) 7.06 Approval of beer in the park permit (page 23-24)

8. NEW BUSINESS

8.01 Approval of ··connecting People to the Outdoors" grant application (page 25-28)

1 8.02 Resolution relating to business subsidies; call for a public hearing on the amendment of the Digi -Key Development Agreement and the granting of an increased business subsidy (page 29-37)

8.03 First reading of ordinance to consider rezoning vacant property south of and adjacent to Valley Home (page 38-52)

8.04 Berger Enterprises. Inc. Mediation Settlement (page 53 -64)

8.05 Resolution approving the entering into of a purchase agreement for the conveyance of that real property (page 65-72)

8.06 Ratify Sale of Real Property to First Street Estates of Thief River Falls, LLLP, a Minnesota Limited Liability Limited Partnership (page 73-76)

9. COUNCIL BOARDS AND COMMISSIONS REPORTS- otall boardsor commissio11swill have met prior to the Council meeting. These reports are intended to keep the other co1111cil members informed of actions or proposed actions taken by these boards and commissions. Only those with something to report would be on the agenda.

10. UPCOMING MEETINGS

10.0 1 City Council Meeting-August 4th at 5:30 p.m. 10.02 Committee of the Whole - August 4th after the council meeting 10.03 Utilities Committee Meeting - August l 0th at 7:00 a.m. 10.04 Public Safety/Liquor Committee Meeting - August 101h at 4:30 p.m. 10.05 Administrative Services Committee Meeting - August l l 1h at 3:00 p.m. (must be done by 6:00 p.m. due to Primary Election) I 0.06 Public Works Committee Meeting - August 12th at 3:00 p.m. 1 10.07 Special Council Meeting (Bond Sale) - August l 2 h at 5:30 p.m. 10.08 City Council Meeting - August 18th at 5:30 p.m. 10.09 League of MN Cities Council Training- September 29th at 5:30 p.m.

11. INFORMATIONAL ITEMS

l l.O I Investment Summary dated 6/30/2020 (page 77-78)

12. ADJOURNMENT

Ci!) of Thief River Falls complies'' ith the ADA. Individual '"ith disabilities requiring special aids should contact the City Administrator. 405 Third Street Ea t, Thief River Falls, MN 56701, 218-681-2943. 48 hours prio r to the scheduled meeting.

2 COMMITTEE OF THE WHOLE PROCEEDINGS I #7.01 JUNE 30, 2020

The City Council of Thief River Falls, Minnesota, met in special session at 5:30 p.m. on June 30, 2020 in the Council Chambers of City Hall. The following Councilmembers were present: Holmer, Howe, Lorenson, Narverud, Brown, Aarestad, Prudhomme and Sollom. No Councilmembers were absent. Also present: City Administrator Angela Philipp, Public Works Director Mark Borseth, City Attorney Delray Sparby, Liquor Store Manager Steve Olson, Electric Superintendent Dale Narlock, Water Systems Superintendent Wayne Johnson, Co-Fire Chief Rick Beier, Co-Fire Chief Marty Semanko, Interim Chief of Police Marissa Adam, Deputy Police Chief Jaeger Bellows VenuWork s Executive Director Nicole Gebeck, Human Resources Specialist LeAnn Engelstad, April Scheinoha from The Times, Marleen Schmitz from TRF Radio

Discussion with Marissa Adam and Jaeger Bellows regarding ordinance enforcement Bellows and Adam presented a Public Nuisance Notification letter and the process going for ward on ordinance enforcement and discussion was had. Consensus of committee was to go door to door to give warning and time to cleanup. If not cleaned then the City Attorney will complete a long form to summons to court. City Attorney is to contact ward councilmember to attend court, cost would then be restitution back to the city.

Discussion ambulance donation Bellows announced Sanford Health of Fargo wants to donate a retired ambulance to our police force. Committee was in agreement to the donation.

Jaeger Bellows progression raise Discussion was had on Jaeger Bellows progression raise. Committee agreed to forward to council for approval.

Bassett resignation letter Discussion was had on Patrol Officer Ryan Basset resigning. Committee agreed to forward to council for approval to fill officer position.

RESOLUTION NO. 6-128-20: APPROVAL TO AMEND RESOLUTION NO 6-127-20 APPOINTING MARISSA ADAM AS INTERIM POLICE CHIEF

Following discussion, Councilmember Brown introduced Resolution No. 6-128-20, being seconded by Councilmember Prudhomme, that:

BE IT RESOLVED, to amend Resolution No 6-127-20, to clarify that Marissa Adam, effec tive July I, 2020, is appointed as Interim Police Chief at a salary of $7, 153.50 per month un til the interim position ends.

The position of Interim Police Chief will include the duties of the Chief of Police and prima ry duties of Investigator with the ability to assign investigative duties to officers as needed.

On vote being taken, the resolution was unanimously passed.

3 Committee of the Whole Proceedings June 30, 2020 Page 2of3

RESOLUTION NO. 6-129-20: APPROVAL OF MEMO OF AGREEMENT BETWEEN THE CITY, MARISSA ADAM, AND LELS AND APPROVING MEMO OF AGREEMENT BETWEEN THE CITY, MARISSA ADAM, AND MAPS

Following discussion, Councilmember Howe introduced Resolution No. 6-129-20, being seconded by Councilmember Prudhomme, that:

WHEREAS, Marissa Adam has been appointed as the Interim Police Chief effective July 1, 2020;and

WHEREAS, being Marissa Adam's position as Investigator was a LELS union position, a Memo of Agreement has been reached with the LELS union allowing her to leave the union with the ability to return to her former position as Investigator; and

WHEREAS, the position of Interim Police Chief may be a part of the MAPS bargaining unit as a supervisory employee.

THEREFORE, BE IT RESOLVED, to approve a Memo of Agreement between the City, Marissa Adam and the LELS union and a Memo of Agreement between the City, Marissa Adam and the MAPS bargaining unit as to form and content and authorize the Mayor and City Administrator to sign.

On vote being taken, the resolution was unanimously passed.

Nicole Gebeck - Norskie contract Discussion was had on the VenuWorks contract with Stoked, LLC- Norskie's. Committee agreed to forward to council for approval.

Social Media/Cyber security Lorenson discussed the legal risk of posting on social media and e-mail use of personal items and discussion was had. Councilmembers were made aware that city business will only be sent to their city issued address from this point forward. League of MN Cities will hold a training for council on September 29th at 5:30 p.m. at City Hall.

Discussion on per diem policy, submission procedure & ordinance Discussion was had on the per diem policy. Committee wants discussed at individual commit tees in July.

Discussion was had on the Department of Revenue Coronavirus Relief Fund Certification. Committee agree it should be signed.

Howe reported it is the 125th anniversary of the Pennington County Historical Society and asked if city was going to do anything. Committee agreed to discuss committee week.

4 Committee of the Whole Proceedings June 30, 2020 Page 3 of3

ADJOURNMENT

There being no further discussion, Councilmember Lorenson moved, being seconded by Councilmem ber Sollom to adjourn at 7:35 p.m. On vote being taken, the Chair declared the motion unanimously carried.

Brian D. Holmer, Mayor

Angela Philipp, City Administrator

5 COUNCIL PROCEEDINGS I #7.01

JULY 7, 2020

The City Council of Thief River Falls, Minnesota, met in regular session at 5:30 p.m. on July 7, 2020 in the Council Chambers of City Hall. The following Councilmembers were present: Holmer, Lorenson, Brown, Aarestad, and Sollom. WebEx: Howe and Narverud. Councilmember Pru dhomme was absent. Mayor Holmer chaired the meeting.

PRESENTATIONS/PROCLAMATIONS/PUBLIC INFORMATION/ ANNOUNCEMENTS

• 2019 Audit - Hoffman, Philipp & Knutson PLLC

APPROVAL OF AGENDA

Councilmember Sollom motioned, being seconded by Councilmember Narverud, to approve the agenda with the addition of four items. On vote being taken, the motion was unanimously ap proved.

RESOLUTION NO. 7-130-20: APPROVAL OF COUNCIL PROCEEDINGS

Presented as part of the Consent Agenda, Councilmember Lorenson introduced Resolution No. 7- 130-20, being seconded by Councilmember Brown, that:

BE IT RESOLVED, by the City Council, to approve June 16, 2020 Council Proceedings.

On vote being taken, the resolution was unanimously passed.

RESOLUTION NO. 7-131-20: APPROVAL OF PAYMENT OF BILLS

Presented as part of the Consent Agenda, Councilmember Lorenson introduced Resolution No. 7- 131-20, being seconded by Councilmember Brown, that:

BE JT RESOLVED, by the City Council, to authorize payment of bills and disbursements in the total amount of $2,293,351.38. A printout of the approved payments and disbursements is attached hereto and made a part hereof.

On vote being taken, the resolution was unanimously passed.

RESOLUTION NO. 7-132-20: APPROVAL OF BEER IN THE PARK PERMIT

Presented as part of the Consent Agenda, Councilmember Lorenson introduced Resolution No. 7- 132-20, being seconded by Councilmember Brown, that:

RESOLVED, by the City Council, to grant the following a Beer in the Park Permit to allow for the consumption of 3.2% malt liquor in the park:

• VFW Post 27993 at Oakland Park from 12:00 p.m. until 5:00 p.m. on August 9, 2020

6 Council Proceedings July 7, 2020 Page 2of8

On vote being taken, the resolution was unanimously passed.

RESOLUTION NO. 7-133-20: APPROVAL OF PROGRESSION RAISE FOR JAEGER BELLOWS, DEPUTY CHIEF OF POLICE

Presented as part of the Consent Agenda, Councilmember Lorenson introduced Resolution No. 7- 133-20, being seconded by Councilmernber Brown, that:

WHEREAS, Officer Bellows has successfully completed his one-year probationary period as the Deputy Chief and is eligible for the progression raise.

THEREFORE, BE IT RESOLVED, by the City Council, to accept the Public Safety/Liquor Committee recommendation to grant Jaeger Bellows, Deputy Chief of Police, a progression raise. Deputy Chief Bellows shall progress to the top of the MAPS Grade Level 10 salary schedule for a new salary of$7,274 per month, effective June 26, 2020.

On vote being taken, the resolution was unanimously passed.

RESOLUTION NO. 7-134-20: APPROVAL OF 2020 - 2021 NORSKIES LEASE BETWEEN CITY OF THIEF RIVER FALLSNENUWORKS OF TRF AND STOKED, LLC

Presented as part of the Consent Agenda, Councilmember Lorenson introduced Resolution No. 7- 134-20, being seconded by Councilmember Brown, that:

THEREFORE, BE IT RESOLVED, by the City Council, to accept the Conunittee of the Whole recommendation to approve the 2020-2021 TRF Norskies lease and authorize the Director ofVenuWorks ofTRF, the Mayor and City Administrator to sign for approval.

On vote being taken, the resolution was unanimously passed.

RESOLUTION NO. 7-135-20: RESOLUTION EXTENDING THE STATE OF EMERGENCY FOR COVID-19 PANDEMIC THROUGH JULY 13, 2020

Pulled from the Consent Agenda, Councilmember Lorenson introduced Resolution No. 7-135-20. being seconded by Cowicilmember Sollom, that:

WHEREAS, a State of Emergency for the COVID-19 Pandemic Event was declared by the City of Thief River Falls originally per Resolution No. 3-55-20 on March 17, 2020; and

WHEREAS, the State of Emergency has been extended again.

NOW, THEREFORE, the City of Thief River Falls declares the City of Thief River Falls, Minnesota in a State of Emergency through July 13, 2020 or until circumstances no longer require a State of Emergency.

On vote being taken, the resolution was unanimously passed.

7 Council Proceedings July 7, 2020 Page 3of8

RESOLUTION NO. 7-136-20: APPROVAL OF ORDINANCE NO. 126, 3Ro SERIES, OF THE CITY OF THIEF RIVER FALLS, MINNESOTA, AMENDING CITY CODE CHAPTER CITY CODE 293.1and293.2, TABLE OF SPECIAL ORDINANCES, CABLE FRANCHISE, BY AMENDING SUBD. 2.C "GROSS REVENUE" DEFINITION AND DELETING SUBD. 2.D, AND ADOPTING BY REFERENCE CITY CODE CHAPTER 10, WHICH, AMONG OTHER THINGS, CONTAIN PENALTY PROVISIONS

Councilmember Brown motioned, being seconded by councilmember Lorenson, to call for the second reading of an ordinance of the City of Thief River Falls, Minnesota, by amending city code chapter city code 293.1 and 293.2, table of special ordinances, cable franchise, by amending subd. 2.c "gross revenue" definition and deleting subd. 2.d, and adopting by reference city code chapter 10, which, among other things, contain penalty provisions. The motion was unanimously carried. City Attorney Sparby read the proposed ordinance.

Councilmember Brown introduced Resolution No. 7-136-20, being seconded by Councilmember Lorenson, that:

THE CITY COUNCIL OF THIEF RIVER FALLS ORDAINS:

Section 1. City Code Chapters 293 .1 and 293 .2, Table of Special Ordinances are hereby amended as follows:

293. l and 293.2, Subdivision 2. C. are hereby amended to read as follows:

(C) "Gross Revenues" means all revenues derived directly or indirectly by the Franchisee or any Affiliate of the Franchisee from the operation of the Cable System to provide Cable Services in the City. Gross revenues shall include, without limitation, the following: (i) fees charged to subscribers for basic ser vice, cable programming service, premium service, pay-per-view programming, video-on-demand programming, a la carte programming, or other Cable Ser vice; (ii) installation, disconnection, reconnection and change-in-service fees; (iii) late fees; (iv) charges for the rental or sales of converters and other equip ment to subscribers; Gross revenues shall be calculated in accordance with gen erally accepted accounting principles, but shall not include any refunds or cred its made to subscribers or any taxes imposed on the services furnished by Grantee.

Section 2. 293. l and 293.2, Subdivision 2.D. is hereby deleted.

Section 3. City Code Chapter 10 entitled "General Provisions" 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 resolution was unanimously passed.

8 Council Proceedings July 7, 2020 Page 4of8

RESOLUTION NO. 7-137-20: APPROVAL OF CONDITIONAL USE PERMIT AND VARIAN CE FOR MTH OF BEMIDJI, LLC

A request for council action was reviewed. Following discussion, Councilmember Lorenson intro duced Resolution No. 7-137-20, being seconded by Councilmember Sollom, that:

WHEREAS, MTH of Bemidji, LLC completed a 26-unit market rate apartment building in 2019 comprised of 10 one-bedroom units and 16 studio units. They are proposing to build two more buildings, each with 18 one-bedroom units and 8 studio units. City code requires a max imum of 40% impervious area or up to 60% impervious area with a Conditional Use Permit. City code also requires two parking spaces per unit and lot area of 3,000 S.F. for the first four units and 2,000 S.F. for each unit after that; and

WHEREAS, MTH of Bemidji, LLC has applied for a Conditional Use Permit to allow 51 % impervious area. This is the area of all roofs, sidewalks and parking lots. They have also ap plied for Variances to allow 1.25 parking spaces per unit and to allow a reduction of 31,810 S.F. in required lot area. The request for variances is because the units are either one-bedroom or studio apartments which require less parking and the reduction in area requirement would be tied to the reduced number of parking spaces. To maximize the number of units, allow room for a storm water treatment pond and make the project economically feasible this Condi tional Use Permit and Variances are necessary. The Planning Corrunission recommended ap proval of the CUP up to 60% and recommended denying the variance requests. The applicant was unable to attend the public hearing due to a change in address and resulting failure to re ceive the notice. The City Council referred the request back to the Planning Commission to al low testimony by the applicant. A special Planning Commission was held on Tuesday, June 23 for this purpose. The Planning Commission is now recommending approval of the variance requiring 114 parking spaces and resulting lot area. This solution was a compromise between the current requirement and the parking space used for a similar building in another communi ty that more closely matches the parking spaces to the number of bedrooms. The recommen dation is subject to the owner including language in their lease restricting renters to one car; and

WHEREAS, a Public Hearing was held by the Planning Commission to review this request.

THEREFORE, BE IT RESOLVED, by the City Council, to accept the Planning Commission recommendation to approve a Conditional Use Permit for up to 60% impervious area and ap· prove Variances for 114 parking spaces and resulting lot area requirement for M11I of Be midji, LLC for property located at 1301 First Street West. This recommendation is subject to the owner including language in their lease restricting renters to one car per apartment.

On vote being taken, the resolution was unanimously passed.

RESOLUTION NO. 7-138-20: APPROVAL TO BEGIN PROCESS TO FILL POSITION OF PATROL OFFICER

9 Council Proceedings July 7, 2020 Page 5of8

A request for council action was reviewed. Following discussion, Councilmcmber Aarestad intro duced Resolution No. 7-138-20, being seconded by Councilmember Lorenson, that:

WHEREAS, due to the resignation of Ryan Basset, effective July 26, 2020, the position is vacant and has been determined to fill the position to continue the efficiency of the depart ment.

THEREFORE, BE IT RESOLVED, by the City Council, to accept the Conunittee of the Whole recommendation to begin the process of filling the position of Patrol Officer. The position is a LELS Union Grade Level 6 non-exempt position. The Patrol Officer vacancy will be opened to the public for filling.

On vote being taken, the resolution was unanimously passed.

RESOLUTION NO. 7-139-20: RESOLUTION AUTHORIZING ISSUANCE AND SALE OF GENERAL OBLIGATION UTILITY REVENUE BONDS, SERIES 2020A AND AUTHORIZING THE CITY TO ENTER INTO A CREDIT ENHANCEMENT PROGRAM AGREEl\tlENT \VITH THE MINNESOTA PUBLIC FACILITIES AUTHORITY

George Eilertson, Northland Securities, presented a proposed resolution. Councilmember Aarestad introduced Resolution No. 7-139-20, being seconded by Councilmember Sollom, that:

BE IT RESOLVED by the City Council (the "Council") of the City of Thief River Falls, Minnesota (the "City"), as follows:

Section l. Authorization; Purpose. It is hereby determined to be in the best interests of the City to issue its General Obligation Utility Revenue Bonds, Series 2020A (the "Bonds"), as author ized pursuant to Minnesota Statutes, Chapters 444 and 475, for the pwpose of financing various im provements to the City's water, st01m sewer, and sewer utilities.

Section 2. Notice of Sale. No1thland Securities, lnc., municipal advisor to the City, has pre sented to this Council a form of Notice of Sale for the Bonds which is attached hereto and hereby approved and which shall be placed on file by the City Administrator. Each and all of the provisions of the Notice of Sale are hereby adopted as the terms and conditions of the Bonds and of the sale thereof, subject to adjustment for issue price compliance terms that may be required prior to the date of sale. N01thland Securities, Inc., as independent municipal advisor, pursuant to Minnesota Stat utes, Section 475.60, Subdivision 2, paragraph (9), is hereby authorized to solicit bids for the Bonds on behalf of the City on a competitive basis without requirement of published notice ..

Section 3. Adjustment of Principal Amount of Bonds. The principal amount of the Bond is sue shall be adjusted in accordance with staff recommendations upon receipt of bids for the financed projects, provided that the principal amount shall be approximately $6,200,000.

Section 4. Award and Sale. The Council shall meet at the times and place shown in the at tached Notice of Sale for the purpose of considering sealed bids for the purchase of the Bonds and of taking such action thereon as may be in the best interest of the City.

10 Council Proceedings July 7, 2020 Page 6of8

Section 5. Approval of the Authority's Credit Enl1ancement Program Agreement. The Min nesota Public Facilities Authority's (the "Authority") Credit Enhancement Program Agreement (the "Agreement") is hereby approved, the same being before the Council and made a part of this resolu tion by reference.

Section 6. Authorization to Sign Agreement and Related forms. The Mayor and the City Administrator are authorized to sign the Agreement on the City's behalf and to execute any other re lated forms prescribed by the Authority with respect to the Agreement.

Section 7. Agreement to Comply with Minnesota Statutes, Section 446A.086. The City is entering into the Agreement with the Authority pursuant to Minnesota Statutes, Section 446A.086 (the "PFA Act") and the City hereby agrees to comply with and be bound by the provisions of the PFA Act.

Section 8. Submission of the Agreement. The Mayor and City Administrator are hereby authorized to submit, on the City's behalf, the Agreement to the Authority, together with the nome fundable application fee.

On vote being taken, the resolution was unanimously passed.

RESOLUTION NO. 7-140-20: RESOLUTION AUTHORIZING ISSUANCE AND SALE OF GENERAL OBLIGATION BONDS, SERIES 2020B

George Eilertson, Northland Securities, presented a proposed resolution. Councilmember Sollom introduced Resolution No. 7-140-20, being seconded by Councilmember Brown, that:

BE IT RESOLVED by the City Council (the "Council") of the City of Thief River Falls, Minnesota (the "City"), as follows:

Section 1. Authorization; Purpose. It is hereby determined to be in the best interests of the City to issue its General Obligation Bonds, Series 2020B (the «Bonds"), as authorized pursuant to Minnesota Statutes, Chapters 429, 444, and 475 and Section 412.301. Proceeds will be used to (i) finance projects including water utility improvements, State Highway No. l Reconstruction, the purchase of various items of capital equipment, and (ii) refund and redeem all or a portion of the City's General Obligation Water Revenue Bonds, Series 2009A, General Obligation Bonds, Series 2011 A, and General Obligation Bonds, Series 20 l 3A.

Section 2. Notice of Sale. Northland Securities, Inc., municipal advisor to the City, has pre sented to this Council a fonn of Notice of Sale for the Bonds which is attached hereto and hereby approved and which shall be placed on file by the City Administrator. Each and all of the provisions of the Notice of Sale are hereby adopted as the terms and conditions of the Bonds and of the sale thereof, subject to adjustment for issue price compliance terms that may be required prior to the date of sale. Northland Secmities, Inc., as independent municipal advisor, pursuant to Minnesota Stat utes, Section 475.60, Subdivision 2, paragraph (9), is hereby authorized to solicit bids for the Bonds on behalf of the City on a competitive basis without requirement of published notice ..

11 Council Proceedings July 7, 2020 Page 7of8

Section 4. Award and Sale. The City Council shall meet at the times and place shown in the attached Notice of Sale for the pw-pose of considering sealed bids for the purchase of the Bonds and of taking such action thereon as may be in the best interest of the City.

On vote being taken, the resolution was unanimously passed.

RESOLUTION NO. 7-141-20: APPROVAL TO AUTHORIZE THE CITY OF THIEF RIVER FALLS TO ENTER INTO A MUNICIPAL ADVISORY SERVICE AGREEMENT WITH NORTHLAND SECURITIES, INC. FOR GENERAL OBLIGATION UTILITY REVENUE BONDS, SERIES 2020A

Councilmember Brown introduced Resolution No. 7-141-20, being seconded by Councilmember Aarestad, that:

BE IT RESOLVED, by the City Council, to authorize the City of Thief River Falls to enter into an agreement with Northland Securities, Inc. for Financial Planning Services for the General Obligation Utility Revenue Bonds, Series 2020A at approximately $27,900.

On vote being taken, the resolution was unanimously passed.

RESOLUTION NO. 7-142-20: APPROVAL TO AUTHORIZE THE CITY OF THIEF RIVER FALLS TO ENTER INTO A MUNICIPAL ADVISORY SERVICE AGREEMENT WITH NORTHLAND SECURITIES, INC. FOR GENERAL OBLIGATION BONDS, SERIES 2020B

Councilmember Brown introduced Resolution No. 7-142-20, being seconded by Councilmember Sollom, that:

On vote being taken, the resolution was unanimously passed.

COUNCIL BOARD AND COMMISSIONS REPORTS

• Holmer reported on Denver Air.

UPCOMING MEETINGS/EVENTS

• Utilities Committee Meeting - July 13th at 7:00 a.m. • Public Safety/Liquor Committee Meeting-July 13th at 4:30 p.m.

12 Council Proceedings July 7, 2020 Page 8 of 8

• Administrative Services Committee Meeting - July 14th at 3 :00 p.m. • Public Works Committee Meeting - July 15th at 4:30 p.m. • City Council Meeting - July 21st at 5:30 p.m.

INFORMATIONAL ITEMS

• Planning Commission resignation - John Johnson resigned and was thanked for all his years of service.

ADJOURNMENT

There being no further discussion, Councilmember Sollom moved, being seconded by Councilmember Lorenson to adjourn. On vote being taken, the Chair declared the motion unanimously carried.

Brian D. Holmer, Mayor

Angela Philipp, City Administrator

13 CITY OF THIEF RIVER FALLS I #7.03 1 PROPOSED RESOLUTION

RESOLUTION NO. : APPROVAL OF ELECTION JUDGES FOR THE 2020 ELECTIONS

Presented as part of the Consent Agenda, Councilmember __ introduced Resolution No. , being seconded by Councilmember __, that:

RESOLVED, by the City Council, to appoint the following people as Election Judges for the Elections to be held on August l l th and November Yd:

Katie Fogarty Cathy Miramontes Esther Johnson Becky Stavenes Glen Kajewski Deb Emst Deb Fulton Lana Sandal Betty Carlson Cerena Peterson Jan Strandlie Rhonda Bach Cindy Vennes Tracy Hjelle Art Welter Diane Dessellier Diane Rud Linda Ramsey Marlene Beedy Jeanette Walseth Elna Lendobeja Theresa Vanyo Millie Reierson Carole Glass Renae Vedbraaten William Fogarty Sharon Benson Zach Lee Sandra Knutson Dan Mapes Edie Brandli Bev Lunde Linda Kaushagen Olive Goldsberry Tom Wang Mary Jo Mugaas Jeremy Purcell

BE IT FURTHER RESOLVED, that the City Administrator shall appoint substitutions of the approved election judges as necessary.

Presented at the July 21, 2020 Council Meeting

Introduced by: ------

Seconded by: ______

Roll Call (if required): _ Holrner_ Howe Sollom Lorenson Brown Prudhomme Aarestad Narverud

Notes:------

14 City of Thief River Falls I #7.04 I

WATER DEPARTMENT

PHONE: 218 681-3809 305 Pennington Ave. S. P.O. Box 528 FAX: 218 681-5820 Thief River Falls, MN 56701-0528 email: [email protected]

Request for Council Action July 21st 2020

Subject: Water Treatment Plant Chemical Bids

Recommendation: It respectfully requested to consider approving the Utility Committee's recommendation to revise the Water Treatment Plants Chemical Bids Specifications to include guaranteed price per 1,000 gallons treated for pretreatment and softening basin chemicals.

Motion To: Approve the Utility Committee's recommendation to revise the Chemical Bid Specifications

Background: The City of Thief River Falls Water Treatment Plant advertises for Chemical Bids periodically with changing processes and volumes in order to keep suppliers in a competitive field.

Key Issues. Because of the challenging raw water the Water Treatment Plant deals with on an inconsistent basis, staff engaged Aqua Pure to do some pilot studies to improve water quality and consistency. Through this process, it is proposed to advertise the pretreatment and softening basin chemicals on a guaranteed per 1,000 gallons treated. Other cities in our region have been successfully using this process to maintain compliance and is approved by the Minnesota of Health.

Financial Considerations: Chemicals are part of the budget process

Legal Considerations: Proposed bid documents reviewed by City Attorney

Department/Responsible Person: Wayne Johnson Water Systems Superintendent

15 CITY OF THIEF RIVER FALLS I #7.04 I PROPOSED RESOLUTION

RESOLUTION NO. : APPROVAL TO REVISE CHEMICAL BID SPECIFICATIONS

Presented as part of the Consent Agenda, Councilmember __ introduced Resolution No. , being seconded by Councilmember __, that:

WHEREAS, because of the challenging raw water the Water Treatment Plant deals with on an inconsistent basis, staff engaged Aqua Pure to do some pilot studies to improve water quality and consistency. Through this process, it is proposed. to advertise the pretreatment and softening basin chemicals on a guaranteed per 1,000 gallons treated. Other cities in our region have been successfully using this process to maintain compliance and is approved by the Minnesota of Health.

THEREFORE, BE IT RESOLVED, by the City Council, to accept the Public Utilities Committee recommendation to revise the Water Treatment Plants Chemical Bids Specifications to include guaranteed price per 1,000 gallons treated for pretreatment and softening basin chemicals.

Presented at the July 21, 2020 Council Meeting

Introduced by: ------

Seconded by: ______~

Roll Call (if required): Holmer Howe Sollom Lorenson Brown Prudhomme Aarestad Narverud

Notes: ~------

16 #7.05 City of Thief River falls

DIRECTOR OF PUBUC WORKS PHONE: 2 18-681-8506 FAX: 21 8-681-8507 405 Third Street East • PO Box 528 email: mborseth@citytrf. net Thief River Falls tvtN 5670 1-0528 www.citytrf.net Request for Council Action

DATE: July 21, 2020

SUBJECT: Vacation of Nelson Avenue

RECOMMENDATION: It is respectfully requested that the Council consider the following Public Works Committee recommendation:

Motion to: Call for hearing at the August 18, 2020 council meeting at 5 :30 to consider the 1 vacation of Nelson Avenue from 10 h Street to 11th Street in Eshelby 's Rearrangement of Smiley Addition to Fairfield. A utility easement will be retained over the entire vacated 50 feet right-of-way.

BACKGROUND: Nelson Avenue was platted as a part of Eshelby's Rearrangement of Smiley Addition to Fairfield in Red Lake County in 1905. There is no improved street or access in this right-of-way. Sanitary sewer is in-place in this corridor.

KEY ISSUES: Adjacent property owners have requested this right-of-way be vacated. The lots along Dewey Avenue are platted at 106 feet deep. In t 996 Pennington County urbanized Dewey Avenue and acquired 11.66 feet of additional right-of-way making the lot depth 94.34 feet. Vacating Nelson Av enue would add 25 feet to the buildable depth of these short lots. Adjacent property owners would own to the centerline of the street right-of-way if vacated, and a utility and drainage easement would be retained over the full vacated right-of-way.

FINANCIAL CONSIDERATIONS: None.

LEGAL CONSIDERATIONS: The city council may call fo r a public hearing and approve a street vacation. This is petitioned street vacation.

DEPARTMENT/RESPONSIBLE PERSON: Mark Borseth-Public Works Director

Encl: (3)

17 NOTICE OF HEARING CITY COUNCIL CITY OF THIEF RIVER FALLS

Notice is hereby given, pursuant to Minnesota Statute 412.851, that adjacent property 1 owners have submitted a request to vacate Nelson A venue between I 0 h Street and 11th Street in Eshelby's Rearrangement of Smiley Addition to Fairfield. Said request will be submitted for review and approval by the City of Thief River Falls.

Notice is further given that the City Council will conduct a Hearing on the street vacation at 5:30 P.M. on Tuesday, August 18, 2020, in the City Council Chambers, City Hall, 405 Third Street East, Thief River Falls, MN 56701. All persons wishing to comment on the Street Vacation will have the option to be heard at this time. Persons who wish to submit written comments prior to the Hearing or who have questions should address them to the office of the Public Works Director, City Hall, P.O. Box 528, Thief River Falls, MN 56701, or telephone 218- 681-8506.

If you have a disability and need an accommodation in order to attend this Hearing, please contact the undersigned as soon as possible or at least 3 working days in advance of the Hearing at the above telephone number.

Dated this 22nd day of July 2020.

CITY OF THIEF RIVER FALLS

Isl Mark Borseth Mark Borseth Public Works Director & Zoning Administrator

Published in the Wednesday, July 29, 2020, edition of The Times.

18 - ___i 1OTbt .s:rR1E-E.T - . - :

\ \ ' \ Authentlslgn ID: CF4FACD4·2AE1-4F5A·B674-SE928BCFDE92

Petition for Street Vacation

We are requesting the City of Thief River Falls vacate Nelson Avenue from 10th Street to 11th Street.

25.059.026.00 Margaret Stokke (estate) 29486 Highway 2 NE Northhome, MN 56661

Signature Date

25.059.027.00 and 25.059.024.00 Patrick and Barbara Sprosty 112 Jerome Street Thief River Falls, MN 56701

Aulhen fuic,, 07/10/2020

F.l

~~elf'- Date

25.059.023.00 and 25.059.023.01 Rick Beier 602 11th Street East Thief River Falls, MN 56701

Signature Date

25.059.025.01 Melissa Nelson 607 101h Street East Thief River Falls, MN 56701

Signature Date

20 Petition for Street Vacation

We are requesting the City of Thief River Falls vacate Nelson Avenue from 10th Street to 11th Street.

25.059.026.00 Margaret Stokke (estate) 29486 Highway 2 NE Northhome, MN 56661

Signature Date ·

25.059.027.00 and 25.059.024.00 Patrick and Barbara Sprosty 112 Jerome Street Thief River Falls, MN 56701

Signature Date

25.059.023.00 and 25.059.023.01 Rick Beier 602 11th Street East

Signature Date

2 5 .059.025 .01 Melissa Nelson 1 607 10 h Street East Thief River Falls, MN 56701 fYl Pi.11Ma AJeo.son 1-13 -aD Signature Date

21 CITY OF THIEF RIVER FALLS I #7.as I PROPOSED RESOLUTION

RESOLUTION NO.: CALL FOR HEARING TO CONSIDER THE VACATION OF NELSON AVENUE FROM 10TH TO i rrn STREET

Presented as part of the Consent Agenda, Councilmember __ introduced Resolution No. , being seconded by Councilmember , that:

WHEREAS, Nelson Avenue was platted as a part ofEshelby's Rearrangement of Smiley Addition to Fairfield in Red Lake County in 1905. There is no improved street or access in this right-of-way. Sanitary sewer is in-place in this corridor; and

WHEREAS, adjacent property owners have requested this right-of-way be vacated. The lots along Dewey A venue are platted at I 06 foet deep. In 1996 PelUlington County urbanized Dewey Avenue and acquired 11.66 feet of additional right-of-way making the lot depth 94.34 feet. Vacating Nelson Avenue would add 25 feet to the buildable depth of these short lots. Adjacent property owners would own to the centerline of the street right of-way if vacated, and a utility and drainage easement would be retained over the full vacated right-of-way.

THEREFORE, BE IT RESOLVED, by the City Council, to accept the Public Works Committee recommendation to call for hearing at the August 18, 2020 council meeting at 5 :30 to consider the vacation of Nelson A venue from 1oth Street to 11th Street in Eshelby' s Rearrangement of Smiley Addition to Fairfield. A utility easement will be retained over the entire vacated 50 feet right-of.way.

Presented at the July 21, 2020 Council Meeting

Introduced by: ------

Seconded by:------

Roll Call (if required): Holmer Howe Sollom Lorenson Brown Prudhomme Aarestad Narverud

Notes: ------~

22 CITY OF THIEF RIVER FALLS

Beer in the Park Permit ***(UP TO 3.2 MALT LIQUOR ONLY)*** City Code Section 111.048

***Application must he presented lo the City Council.for approval prior to the event***

App licant : ~{Y'O!\.\-ha.. ~L\JS'h: {~\~'f-...\ (organization name ifapplicable )

Contact Person: ~o.a.\h;. "'br-i 2S'6\ ~\~'A.) Address: LVl.\ \5\ 5-\reel £;. At;>+. a 1/ill.6 R; w faltb K>J 5l '1o I

Phone: J/8-Ll\lo · ~ o /;)q

Date of Event: -:),)\':) r95±h /io{)o

Park to be Used: Hac±r. p

Type of Event: liJC:~\CVJ Reeep\.iaQ. Approximate number of persons attending: ____._.\ D.....D....______

Has the park been reserved with the Parks and Recreation Oepartment? £_, YEs - NO I understand that no financial transaction may occur at this event for charging, directly or indirectly, for the sale of 3.2 malt liquor (i.e. admission, cover charge) i_vEs _NO

I understand that the permit allows for the consumption of3.2 malt liquor only. No strong beer, wine, or intoxicating liquor is allowed. X-YES _NO

I understand that applicant shall comply and enforce all restrictions, limitations, and regulations regarding the consumption of malt liquor under the City Code and State Statute. f YES NO

Applicant understands that all information contained on this application is public data according to Chapter 13 of the Minnesota State Statute. Failure to provide the requested infonnation may result in the application being denied.

SIGNATURE OF APPLICANT: i:Jcrnrudin.. ~,:

For Office Use Only: DATE APPLICATION RECEIVED__ ___ DATE Of COUNCIL ACTION _____

23 CITY OF THIEF RIVER FALLS I #7.os I PROPOSED RESOLUTION

RESOLUTION NO. : APPROVAL OF BEER IN THE PARK PERMIT

Presented as part of the Consent Agenda, Councilmember __ introduced Resolution No., being seconded by Councilmember __, that:

RESOL VED, by the City Council, to grant the following a Beer in the Park Permit to allow for the consumption of3.2% malt liquor in the park:

• Samantha Bruski (Black) at Hartz Park from 4:00 p.m. until 8:30 p.m. on July 25, 2020

Presented at the July 21, 2020 Council Meeting

Introduced by: ------

Seconded by: ______~

Roll Call (if required): - Holmer- Howe Sollom Lorenson Brown Prudhomme Aarestad Narverud

Notes: ------~

24 #8.01 City of Thief Ri~er falls

DIRECTOR OF PUBLIC WORKS PHONE: 218-68 1-8506 FAX; 218-68 I -8507 405 Th.ird Street East • PO !:lox 528 email: [email protected]:t ThiefRiver Falls MN 5670 1-0528 www.citytrf.net Reguest for Council Action

DATE: July21, 2020

SUBJECT: Connecting People to the Outdoors Grant Application and Memorandum Agreement with Greater Minnesota Regional Parks and Trails Commission

RECOMMENDATION: [tis respectfully requested that the Council consider the following Public Works Committee recommendation:

Motion to: Approve Connecting People to the Outdoors Grant Application and Memorandum Agreement with Greater Minnesota Regional Parks and Trails Commission; and authorize the Mayor and Administrator to execute the agreement.

BACKGROUND: The Greater Minnesota Regional Parks and Trails Commission (GMRPTC) was established in 20 l3 to carry out system planning and provide recommendations to the legislature for grants funded by the Legacy parks and trails fund to counties and cities outside the seven-county metropolitan area for parks and trails of regional significance.

The Red Lake River Corridor (RLRC) plays a unique role in Minnesota's history and outdoor recreation system. Long-term planning has been established by the Joint Powers Board (JPB) since its inception in 2003 and most recently since 2015 in a continued effort to create the 175 mile corridor as a destination with convenient gap-free access and parking, continuity, and connectivity within and between cities.

The RLRC JPB is made up of representatives from the corridor communities of Thief River FaUs, St. Hilaire, Red Lake Falls, Crookston, Fisher and East Grand Forks and aims to highlight regional attractions and historic sites in Northwest Minnesota.

KEY ISSUES: Grant funds are available through Legacy funding to "Connect People to the Outdoors". These grant funds are for events that target new and non-typical users of different ages, ethnicities, physical abilities, and interests to participate in outdoor activities. Our joint grant application of $98,000 would be in partnership with our Red Lake River Corridor partner cities. The local match requirement of $24,5 00 would be split equally between the six communities in the amount of $4,084 each over two years. This would fund two events in each community, one in 2021 and one in 2022. Each community would be responsible to select and complete their own events. The funding requires 300/o of the grant funds be used for marketing and promotional material that may be used by the community for further advertising and promotions.

FINANCIAL CONSIDERATIONS: The City of Thief River Falls would be responsible for $2,042 in 2021 and $2,042 in 2022 for a maximum of $4,084.

LEGAL CONSIDERATIONS: None.

DEPARTMENT/RESPONSIBLE PERSON: Mark Borseth-Public Works Director

Encl: (1)

25 MEMORANDUM AGREEMENT

lbis Memorandum Agreement memorializes the current status of the City of Thief River Falls (the "Applicant") which has applied for a grant from the Greater Minnesota Regional Parks and Trails Commission (the "Commission") as a designated regional park or trail. Applicant states that:

1. Applicant has the right and authority to sponsor a grant funding request to the Commission.

2. It has a right and authority to act as Legal Sponsor for the State Grant Application (the "Application") and will work with the Minnesota Department of Natural Resources ("DNR"), in developing a Grant Agreement relating to the funding which may be awarded by the Commission.

3. The Applicant certifies it has read and understands the Office of Grants Management Conflict of Interest Policy 08-01, will maintain an adequate Conflict of Interest Policy and monitor and report any actual, potential, or perceived conflicts of interest to the Commission and DNR.

4. Applicant confirms all of the information in its Application and further confirms that it has no expectation of, or entitlement to, reimbursement of costs incurred prior to grant agreement execution date and, if applicable, it has not entered into a written purchase agreement to acquire property described in its Application if grant funds are to be used for the purchase.

5. Applicant has or will acquire a fee interest ownership or permanent easement over the land described in the Application for regional parks and regional special recreational feature parks as applicable. The applicant has or will acquire a fee interest, perpetual easement or minimum twenty (20) year lease over the land described in the Application for regional trails, or regional special recreational feature parks as applicable, before the project proceeds.

6. Applicant agrees that it will comply with all applicable laws, regulations and requirements as stated in the Grant Agreement with the DNR, including dedicating the park property for uses consistent with the grant agreement into perpetuity or for trails, committing to maintain the trails for a period of not less than twenty (20) years, and dedicating all land acquired under the project for uses consistent with the grant agreement into perpetuity.

7. The Com.mission will confirm at such time that it has made the award of funds authorizing a Grant Agreement to be developed between the DNR and the Applicant.

IN WITNESS WHEREOF, the foregoing executed as of ______, 20 _.

APPLICANT City of Thief River Falls

By: Brian Holmer Its: Mayor

757888.v3 26 APPLICANT City of Thief River Falls

By: Angie Philipp Its: Administrator

GREATER MINNESOTA REGIONAL PARKS AND TRAILS COMMMISSION

By: Renee Mattson, Executive Director

2 757888.v3 27 CITY OF THIEF RIVER FALLS #8.01 PROPOSED RESOLUTION

RESOLUTION NO. : APPROVAL OF CONNECTING PEOPLE TO THE OUTDOORS GRANT APPLICATION AND MEMORANDUM AGREEMENT WITH GREATER MINNESOTA REGION ALP ARKS AND TRAILS COMMISSION

Mark Borseth presented a Public Works Committee recommendation. Councilmember __ introduced Resolution No. , being seconded by Councilmember , that:

WHEREAS, grant funds are available through Legacy funding to "Connect People to the Outdoors". These grant funds are for events that target new and non·typical users of different ages, ethnicities, physical abilities, and interests to participate in outdoor activities. Our joint grant application of $98,000 would be in partnership with our Red Lake River Corridor partner cities. The local match requirement of $24,500 would be split equally between the six communities in the amount of $4,084 each over two years. This would fund two events in each community, one in 2021 and one in 2022. Each community would be responsible to select and complete their own events. The funding requires 30% of the grant funds be used for marketing and promotional material that may be used by the community for further advertising and promotions.

THEREFORE, BE IT RESOLVED, by the City Council, to accept the Public Works Committee recommendation to approve Connecting People to the Outdoors Grant Application and Memorandum Agreement with Cheater Minnesota Regional Parks and Trails Commission; and authorize the Mayor and Administrator to execute the agreement.

Presented at the July 21, 2020 Council Meeting Introduced by: ------

Roll Call (if required): - Holmer- Howe Sollom Lorenson Brown Prudhomme Aarestad Narverud

28 #8.02 City of Thief River falls

DIRECTOR OF PUBL!C WORKS PHONE: 218-681-8506 f'AX: 218-681-8507 405 Third Street Cast • PO Box 528 email: [email protected] Thief River rails MN 56701-0528 www.citytrt:net Request for Council Action

DATE: July21, 2020

SUBJECT: Digi Key Expansion - Amendment to Development Agreement and Business Subsidy

RECOMMENDATION: It is respectfully requested that the Council consider the following Public Works Committee recommendation:

Motion to: Approve calling for a hearing on August 18, 2020 at 5:30 P.M. to consider amending the Development Agreement and Business Subsidy for Tax Increment Financing District 1-13 and authorize the Mayor and Administrator to execute the agreement, contingent upon final legal review.

BACKGROUND: The City executed a Development Agreement dated June 28, 2017, with DK Real Estate Holdings LLC for the Digi-Key Electronics Expansion Project in Tax Increment Financing District No. 1-13. The Development Agreement contained, as an exhibit, a fonn of a Business Subsidy Agreement which included a business subsidy and issuance of a Pay-as-you-go Note for the lessor of $2, 153,444 or the amount of the qualified costs, with an interest rate of 5%, with the city retaining the balance of the increment for administration and to reimburse itself for infrastructure expenses. This Business Subsidy Agreement contains jobs and wage goals that are consistent with the language in the Minnesota Investment Fund (MIF) grant agreement.

Initially, in a letter dated April 28, 20 l 7, the Pennington County Assessor provided an estimated completed market value of $14,192,000. Based on this value, the estimated gross tax increment was $3.648 million with a present value of $2.7 million as a basis for the subsidy.

KEY ISSUES: Based on a new market value of $22,755,400, the updated present value of the tax. increment over 9 years is estimated at $3,525,934. Assuming the City retains 8% for administration and an additional l2% to reimburse itself for infrastructure expenses related to the project as originally proposed, a maximum of $2,820,747 could be available for a business subsidy to reimburse Digi-Key for eligible expenses. The numbers shown are the present value and do not include interest.

FINANCIAL CONSIDERATIONS: The proposed amendment increases the amount retained by the city for administration from $23 1,902 to $282,075, amount retained for infrastructure reimbursement from $342,375 to $423, 112, and the amount available for the Digi-Key Paygo note from $2,153,444 to $2,820,747.

LEGAL CONSIDERATION: Subject to review by City Attorney.

DEPARTMENT/RESPONSIBLE PERSON: Mark Borseth, Public Works Director.

Encl. (1)

29 Memo

To: Mark Borseth, City of Thief River Falls From: Rebecca Kurtz, Ehlers

Cc: Grant Turpin, Dorsey Date: July 13, 2020 Subject: Proposed Digi-Key Business Subsidy Amendment

Background On April 18, 2017, the City of Thief River Falls adopted Tax Increment Financing District No. 1-13 (the "District") to assist Digi-Key Electronics with a proposed one million square foot expansion adjacent to the existing manufacturing facility . Construction began in 2017 and will be substantially complete in 2020. It is anticipated that the expansion will result in more than 1,000 new jobs in the area.

The TIF District is an economic development district with a maximum term of 9 years of tax increment. First increment is anticipated in 2021, and it is anticipated that the District will be decertified in 2029.

Initially, in a letter dated April 28, 2017, the Pennington County Assessor provided an estimated completed mark.et value of $14, 192,000. Based on this value, the estimated gross tax increment was $3 .648 million with a present value of $2.7 million. The City and Digi-Key entered into an Agreement on June 28, 2017, which included a business subsidy and issuance of a Pay-as-you-go Note for the lessor of $2, 153,444 or the amount of the qualified costs, with an interest rate of 5%. The City would retain the balance of the increment for administration and to reimburse itself for infrastructure expenses.

Revised request from Digi-Key In an email dated May 5, 2020, Digi-Key informed the City they had worked with the County and accepted a property tax value of $22,755,400, provided they could work with the City to increase the amount of tax increment based on the new market value .

At the time of establishment of the TIF District, Digi-Key provided an estimated $9.3 million in qualified development costs, which is in excess of the minimum needed to issue the TJF Note.

Revised TIF cashflow with increased market value Based on a market value of $22,755,400, the updated present value of the tax increment over 9 years is estimated at $3,525,934. Assuming the City retains 8% for administration and an additional 12% to reimburse itself for infrastructure expenses related to the project, a maximum of $2,820,747 could be available for a business subsidy to reimburse Digi-Key for eligible expenses. A comparison of the original Agreement with the proposed amendment follows. (The numbers shown are the present value and do not include interest):

E3Ul~DING COMMUNITIES 11 " 'o/'/~•Ar we; DO 1 ((100) 552·11 71

30 Existing Proposed Agreement Amendment City retains for Administration 231,902 282,075 City retains for infrastructure reimbursement 342,375 423, 112 Available for Digi-Key Paygo Note 2, 153,444 2,820,747

Public infrastructure expenses The City's costs related to the pliblic infrastructure improvements were approximately $1.95 million, which includes $1,720,000 for streets, water and sewer improvements and $230,000 for electric infrastructure. The City received a State BDPI grant for $1.6 million and $90,000 from Pennington County for infrastructure improvements. The City anticipates the balance of approximately $350,000 will be reimbursed with tax increment revenues. In anticipation of this, the City established an interfund loan with an interest rate of 4% to fund the balance.

TIF Plan and budget The TIF Plan and related budget was established using a market value of $30 million and allows up to $7 million plus interest in tax increment obligations. Therefore, the adopted budget is sufficient to absorb the anticipated increase in increment and not require a modification to the TIF Plan.

City considerations White the City may choose to increase the amount of the business subsidy provided to Digi-Key, it is important to note that the increase in available tax increment and/or having qualified costs does not entitle Digi-Key to additional tax increment and does not confirm a need for additional assistance. other options for the additional increment include paying the obligations in a shorter term, thus allowing the taxing jurisdictions to receive the full benefit of the increase in tax capacity sooner than 9 years or using additional funds to complete other qualified projects in the Project Area.

If the City chooses to move forward with an amendment to the Agreement and an increase in the amount of the subsidy, I would recommend considering the following items in the Amended Agreement:

• Confirm the amount of the City expenses related to the infrastructure and other project improvements. If the net incurred is in excess of $423, 112, the City may consider revising the amount retained to reimburse the City for all costs incurred in addition to the on-going administration expense. This could result in increasing the amount retained by the City.

• The minimum market value stated in the Agreement should be increased to $22,755,400, and Digi-Key should not have the ability to petition to reduce this value during the term of the District.

Next steps Below are the next steps as the City considers an amend the Development Agreement and business subsidy:

1. Determine if the City wants to increase the TIF assistance to Digi-Key and the amount of that increase.

2. Confirm the amount of City incurred expenses related to the project and confirm the City portion of the TIF is sufficient to reimburse all project expenses plus on-going administration.

2iU 1LD 1 "-iG C0Mfv1U'VI '1 1:5 11 s \A/HAT 'vV€ DO I C800) ; ~? · 1111

31 3. If the amount of assistance will be amended, the City will need to amend the Development Agreement and Business Subsidy Agreement to reflect the revised assistance and terms. This amendment will require the City to hold a public hearing to consider the increased business subsidy.

4. Prior to issuance of the Pay-as-you-go TIF Note, Digi-Key will need to provide the City documentation of expenditures for the qualified costs totaling at least the amount of the TIF Note. The Development Agreement identifies costs qualified for reimbursement including acquisition of property, municipal permits and site development fees, and site improvements I preparation.

Schedule July 21, 2020: Council considers a resolution calling for a public hearing to amend the Development Agreement and the amount of the business subsidy awarded to Digi-Key (the "Amendment").

By July 31, 2020: Ehlers submits a public hearing notice related to the Amendment to the Thief River Falls Times.

August 5, 2020: Public hearing notice for the proposed Amendment is published in the Thief River Falls Times.

August 18, 2020: Council holds a public hearing and considers an amendment to the Development Agreement and business subsidy increasing the amount of the business subsidy awarded to Digi-Key.

August 1, 2021: The first tax increment payment is anticipated in August 2021, and tax increment will be paid on August 1 and February 1 for nine years or until the obligations are paid in full.

December 31, 2029: The TIF District has a maximum term of nine years of increment, and the anticipated decertification date is December 31, 2029. Any remaining balance on the Pay-as you-go Note is not an obligation of the City.

BUILDING COMMUNITIES. IT'S WHAT WE 00. ~:;: info'0.1ehlers-·1nc com ~"'.> 1 (800) 552·1171 Cfl» www.ehferc; ·inc.com

32 RESOLUTION RELATING TO BUSINESS SUBSIDIES; CALLING FOR A PUBLlC HEARING ON THE AMENDMENT OF THE DIGI-KEY DEVELOPMENT AGREEMENT AND THE GRANTING OF AN INCREASED BUSINESS SUBSIDY

BE IT RESOLVED by the City Council (the ''Council'') of the City of Thief River Falls, Minnesota (the "City"), as follows:

SECTION 1. RECITALS

1.0 I . There has been executed a certain Development Agreement, dated June 28, 2017 (the "Agreement"), between the City and DK Real Estate Holdings LLC, (the "Developer," together with the City, the "Parties") related to the Digi-Key Electronics Expansion Project, as described in the Agreement (the "Project").

1.02. Pursuant to the Agreement, in order to encourage the Developer to proceed with construction of the Project and to assist the Developer in paying the costs thereof, the City agreed to provide the Developer with certain public assistance, in the form of tax increment financing assistance (the "Public Assistance"), through issuance of the City's Limited Tax Increment Revenue Note.

1.03. The Public Assistance under the Agreement constituted a "Business Subsidy" which required compliance with Minnesota Statutes, Sections 1161.993 to 1161.995 (the "Business Subsidy Act").

1.04. In connection with the Development Agreement and the Public Assistance provided, the City and the Developer also entered into a Business Subsidy Agreement, dated March 11, 2019 (the "Business Subsidy Agreement"), which required the Developer to meet certain job and wage goals in order to receive the Public Assistance.

1.05. The Developer has requested and the Patties desire to amend the Development Agreement to increase the Public Assistance to be provided to the Developer in the approximate amount of $667,303 (the "Increased Public Assistance"), and the Parties desire to either amend the Business Subsidy Agreement or enter into a new agreement related to the Increased Public Assistance.

1.06. The Business Subsidy Act, provides that the City, as a local government agency within the meaning of the Act, before granting a business subsidy that exceeds $150,000, must provide public notice and a hearing on the subsidy and enter into a subsidy agreement with the recipient of the subsidy.

4842-8997-0882\2 33 SECTION 2. PUBLIC HEARING.

2.01. A public hearing on the amendment of the Development Agreement and granting of business a subsidy in the form of tax increment financing assistance in connection with the Project is hereby called and shall be held on August 18, 2020, at 5:30 p.m. at City Hall, 405 Third Street East in the City. The public hearing shall also be available via Webex at https://cityofthiefriverfalls-uuh.my. webex.com/meet/citycounci 11 623986425 or by calling 1- 408-418-9388, Access code: 623 986 425.

2.02. The City Administrator shall cause notice of the public hearing, in the form attached hereto as Exhibit A, to be:

i. published in the official newspaper of the City and a newspaper of general circulation in the City at least once not less than 10 days prior to the date fixed for the public hearing;

11. available in printed paper copies; and

rn. posted on the internet, if possible.

2.03. Information about the proposed business subsidy, including a draft copy of the proposed business subsidy agreement or amendment and a draft copy of the amended Development Agreement, shall be available for public inspection, following publication of the notice of public heating, at the City Administrator's Office at City Hall, between the hours of 8:00 a.m. and 4:30 p.m., on normal business days.

2 4842-8997-0882\2 34 Exhibit A

Notice of Public Hearing

Notice of Public Hearing on a Grant of a Business Subsidy

NOTICE IS HEREBY GIVEN that the City Council of the City of Thief River Falls (the "City") will hold a public hearing on August 18, 2020, at 5:30 p.m., at City Hall, 405 Third Street East in the City and by Webex at bttps://cityofthiefriverfalls uuh.my.webex.com/meet/citvcouncil I 623986425 or by calling 1.408-418-9388, Access code: 623 986 425, on the granting by the City to DK Real Estate Holdings LLC, a related entity of Digi-Key Electronics ("Digi-Key"), of a business subsidy, within the meaning of Minnesota Statutes, Section 1161.993 through 116J.995 (the "Act"). Such business subsidy to be in the fonn of increased tax increment financing assistance, pursuant to an amendment to the Development Agreement, dated June 28, 2017 (the "Agreement"), between the City and the Developer, in connection with the expansion adjacent to Digi-Key's existing warehouse and product distribution center in the City.

All persons may appear at the public hearing in-person, by Webex, or by telephone and present their views orally or in writing. A copy of the City's proposed Business Subsidy Agreement between the City and the Developer, as recipient of the business subsidy, together with documents and information concerning the proposed business subsidy, including the amendment to the Agreement, is available for public inspection and may be obtained in the office of the City Administrator located at 405 Third Street East in the City, between the hours of 8:00 a.m. and 4:30 p.m. on normal business days.

Any person with residence in or the owner of taxable property in the City may file a written complaint with the City if the City fails to comply with the Act. No action may be filed against the City for the failure to comply with the Act unless a written complaint is filed.

Dated: July 22, 2020.

By~~~~~~~~~~~-- City Administrator

3 4842-8997-0882\2 35 CITY OF THIEF RIVER FALLS #8.02 PROPOSED RESOLUTION

RESOLUTION NO. : RESOLUTION RELATING TO BUSINESS SUBSIDIES; CALLING FOR A PUBLIC HEARING ON THE AMENDMENT OF THE DIGI-KEY DEVELOPMENT AGREEMENT AND THE GRANTING OF AN INCREASED BUSINESS SUBSIDY

Mark Borseth presented a Public Works Committee recommendation. Cotlllcilmember __ introduced Resolution No. , being seconded by Councilmember that:

BE IT RESOLVED by the City Council (the ':Council") of the City of Thief River Falls, Minnesota (the "City"), as follows:

SECTION l. RECITALS

l.O I. There has been executed a certain Development Agreement, dated June 28, 2017 (the "Agreement"), between the City and DK Real Estate Holdings LLC, (the "Developer," together with the City, the "Parties") related to the Digi-Key Electronics Expansion Project, as described in the Agreement (the "Project").

1.02. Pursuant to the Agreement, in order to encourage the Developer to proceed with construction of the Project and to assist the Developer in paying the costs thereof, the City agreed to provide the Developer with ce11ain public assistance, in the form of tax increment financing assistance (the "Public Assistance"), through issuance of the City's Limited Tax Increment Revenue Note.

1.03. The Public Assistance under the Agreement constituted a "Business Subsidy" which required compliance with Minnesota Statutes, Sections 1 l6J.993 to l 16J.995 (the "Business Subsidy Act").

1.05. The Developer has requested and the Parties desire to amend the Development Agreement to increase the Pub I ic Assistance to be provided to the Developer in the approximate amount of $667,303 (the "Increased Public Assistance"), and the Parties desire to either amend the Business Subsidy Agreement or enter into a new agreement related to the Increased Public Assistance.

36 SECTION 2. PUBLIC HEARfNG.

2.01. A public hearing on the amendment of the Development Agreement and granting of business a subsidy in the form of tax increment financing assistance in co1U1ection with the Project is hereby called and shall be held on August 18, 2020, at 5:30 p.m. at City Hall, 405 Third Street East in the City. The public hearing shall also be available via Webex at https://cityofthiefriverfalls-uuh.my. webex.com/meet/citycouncil I 623986425 or by calling 1-408- 418-9388, Access code: 623 986 425.

2.02. The City Administrator shall cause notice of the public hearing, in the form attached hereto as Exhibit A, to be:

t. published in the official newspaper of the City and a newspaper of general circulation in the ·City at least once not less than 10 days prior to the date fixed for the public hearing;

u. available in printed paper copies; and

ui. posted on the internet, if possible.

2.03. Information about the proposed business subsidy, including a draft copy of the proposed business subsidy agreement or amendment and a draft copy of the amended Development Agreement, shall be available for public inspection, following publication of the notice of public hearing, at the City Administrator's Office at City Hall, between the hours of 8:00 a.m. and 4:30 p.m., on nonnal business days.

Presented at the July 21, 2020 Council Meeting

Introduced by: ------

Seconded by: ______

Roll Call (if required): _ Holmer_Howe _ Sollom Lorenson Brown Prudhomme Aarestad Narverud

Notes: ------

37 City of Thief River falls #8.03

!){RECTOR OF PUBLIC WORKS PHONE: 218·681-8506 FAX: 218-681-8507 405 'lhird Street East • PO Box 528 email: mborseth@citytrfnet Thief River Falls MN 5670 1-0528 www.citytrf.net Request for Council Action

DATE: July 2 1, 2020

SUBJECT: Rezoning - Valley Home Property

RECOMMENDATION: It is respectfully requested that the Council consider the following Planning Commission recommendation:

Motion to: Call for First Reading to consider rezoning vacant property south of and adjacent to Valley Home and legally described in the attached ordinance from General Residential District (R-2) to Multi-Family Residential District (RA).

BACKGROUND: Valley Assisted Living, LLC O\vns and operates an assisted living and memory care unit at 701 Highway 32. They are in the process of selling 5.87 acres of vacant property to the south of their facility. They have a purchase agreement for the sale with several contingencies. One of the contingencies is to rezone the property.

KEY ISSUES: The owner, Regan Rohl, has applied to rezone the property from General Residential District (R-2) to Multi-Family Residential District (R-4). The buyer is proposing to construct multi family housing in the spring of 2021. In addition to rezoning the property owner and developer will be addressing utilities availability and highway access.

FINANCIAL CONSIDERATIONS: All costs associated with the rezoning will be the responsibility of the property owner.

LEGAL CONSIDERATION: This action requires a public hearing held at the Planning Commission meeting and two readings of the proposed zoning amendment.

DEPARTMENT/RESPONSIBLE PERSON: Mark Borseth, Public Works Director

Encl: (8)

38 ORDINANCE NO. __, 3RD SERIES

AN ORDINANCE 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 152.998, WHICH, AMONG OTHER THINGS, CONTAIN PENALTY PROVISIONS.

THE CITY COUNCIL OF THIEF RIVER FALLS ORDAINS:

Section 1. The City Zoning Distticts Map is hereby amended by changing the zoning designation of the following described real property from General Residential District (R-2) to Multi-Family Residential District (R-4) to allow for apartment development. The property is legally described as follows:

A tract of land containing approximately one and one half acres (1 !4), more or less and more particularly described as follows: Beginning at a point of2301h feet South and 20 feet West of the 1/16 comer, at the Northeast comer of the Southeast Quarter of the Southwest Quarter (SE 114 SW 114) Section thirty-three (33), Township One Hundred Fifty-Four, Range Forty-three; thence from said starting point running South ninety-six and one-half feet (96 1h) thence rwming West six hundred fifty-t\:vo feet; thence again running north ninety-six and one half feet (96 Yi); and thence again running East six hundred fifty-two feet to the Point of Beginning and Three tracts ofland lying in Section Thirty-Three (33), Township One Hundred Fifty-four (154) North, Range Forty-three (43) West, more fully described as: (1) Beginning at a point 327 feet South and twenty (20) feet West of the 1/16 comer at the Northeast comer of the Southeast Quarter of the Southwest Quarter (SE 114 SW 114) of Section Thirty-three (33), in Township One Hundred Fifty-four (154) North of Range Forty-three (43) West; thence from said starting point running South thirty-five (35) feet; thence rwming West 652 feet; thence running North 35 feet and thence rwming East to the point of beginning. Excepting therefrom any highways on or across said premises, in Pennington County.

(2) A tract of land sixty-one and one-half (61 !4) feet wide containing approximately three- quarter (%)acre of land, more or less, and more particularly described as follows: Beginning at a point 362 feet South, and about 20 feet West of the 1/16 comer at the Northeast comer of the Southeast Quarter of the Southwest Quarter (SE 114 SW 114) in Section Thirty-three (33), Township One Hundred Fifty-Four (154) North of Range Forty-three (43) West of the Fifth Principal Meridian, in Pennington County, Minnesota; thence from the said starting point running South 61 Y2 feet; thence running West 652 feet; thence again running North 611h feet; thence again running East 652 feet to the point of beginning, but less and excepting therefrom all of the street or highway running across the East end of the said above described premises.

(3) Beginning at a point 672 feet West of the 1/16 corner at the Northeast corner of the Southeast Quarter of the Southwest Quarter (SE 114 SW 114) in Section Thirty-three (33) in

39 Township One Hundred Fifty-four (154) North of Range Fo11y-three (43) West of the Fifth Principal Meridian, in Pennington County, Minnesota; thence from said starting point running South 423.5 feet; thence East approximately 340 feet to the Westerly right of way line of Minnesota Trunk Highway 32; thence Southwesterly along the westerly right of way line of Minnesota Trunk Highway 32 a distance of approximately 1250 feet to the centerline of Greenwood Street extended; thence West along the extended centerline of Greenwood Street a distance of approximately 50 feet to the Easterly right of way line of the Great Northern Railroad; thence northeasterly along the easterly right of law line of the Great Northern Railroad, a distance of approximately 1420 feet to the point of beginning.

Section 2. City Code Chapter I 0 entitled "General Provisions" and Section 152. 998 entitled "Violation" are hereby adopted in their entirety, by reference, as though repeated verbatim herein.

Section 3. Said rezoning to be specifically contingent upon the sale of said real property for Multi-Family Residential use.

Section 4. This ordinance shall be in force and effect from and after its passage, approval, and publication.

Passed by the City Council of Thief River Falls, Minnesota, on the _th day of July, 2020.

Voting Aye:

Voting No:

Abstaining:

Absent:

Mayor ATTEST:

City Administrator

Published ______, 2020 in the Times newspaper.

40 NOTICE OF HEARING PLANNING COMMISSION CITY OF THIEF R1VER FALLS

Notice is hereby given, pursuant to Chapter 152 of the Thief River Falis City Code, that Valley Assisted Living, LLC, 101 Highway 32 South, Thief River Falls, MiIUlesota 56701 has submitted a request to re-zone certain real property from General Residential District (R-2) to Multi-Family Residential District (R-4). The property is legally described as follows:

A tract of land containing approximately one and one half acres ( 1 Y:z), more or less and more particularly described as follows: Beginning at a point of230Y:z feet South and 20 feet West of the 1116 comer, at the Northeast corner of the Southeast Quarter of the Southwest Quarter (SE V4 SW Y

and

Three tracts of land lying in Section Thirty-Three (33), Township One Hundred Fifty-four (154) North, Range Forty-three (43) West, more fully described as:

(1) Beginning at a point 327 feet South and twenty (20) feet West of the 1116 comer at the Northeast comer of the Southeast Quarter of the Southwest Quarter (SE V4 SW Y

(2) A tract of land sixty-one and one-half (61 Y2) feet wide containing approximately three quarter (%)acre ofland, more or less, and more particularly described as follows: Beginning at a point 3 62 feet South, and about 20 feet West of the 1116 corner at the Northeast comer of the Southeast Quarter of the Southwest Quarter (SE V4 SW Y

41 (3) Beginning at a point 672 feet West of the 1116 corner at the Northeast corner of the Southeast Quarter o f the Southwest Quarter (SE Y.i SW Y4) in Section Thirty-three (33) m Township One Hundred Fifty-four (154) North of Range Forty-three (43) West of the Fifth Principal Meridian, in Pennington County, Mi1U1esota; thence from said starting point running South 423.5 feet; thence East approximately 340 feet to the Westerly right of way line of Minnesota Trunk Highway 32; thence Southwesterly along the westerly right of way line of Minnesota Trunk Highway 32 a distance of approximately 1250 feet to the centerline of Greenwood Street extended; thence West along the extended centerline of Greenwood Street a distance of approximately SO feet to the Easterly right of way line of the Great Northern Railroad; thence northeasterly along the easterly right of law line of the Great Northern Railroad, a distance of approximately 1420 feet to the point of beginning.

Notice is further given that the Planning Commission will conduct a Hearing on the Re zoning Request at 5:00 P.M. on Tuesday, July 14, 2020, in the City Council Chambers, City Hall, 405 Third Street East, Thief River Falls, MN 56701. All persons wishing to comment on the Re-Zoning Request will have the option to be heard at this time. Persons who wish to submit written comments prior to the Hearing or who have questions should address them to the office of the Public Works Director, City Hall, P.O. Box 528, Thief River Falls, MN 56701, or telephone 218-681-8506.

If you have a disability and need an accommodation to attend this Hearing, please contact the undersigned as soon as possible or at least 3 working days in advance of the Hearing at the above telephone number.

Dated this 26th day of June 2020.

CITY OF THIEF RIVER FALLS

/s/ Mark Borseth Mark Borseth Public Works Director & Zoning Administrator

Published in the Wednesday, July 1st, 2020, edition of The Times.

42 'I $ ;:..&._

43 ------~-- Application To Planning Commissio.n/BOZA City of Thief River Falls Community Services 405 3rd Street East- P.O. Box 528 Thief River Falls, MN 56701 218-681-8506

o REZONING (Fee $150.00) o APPEA~S (Fee $50.00) o VA.RIANCE (Fee$150.00) o LAND SUBDMSION (Fee $300.00)

D CONDITIONAL USE PERMIT (Fee $150.00)

Present Use/ (.:J ((l'I"\.

f fe('e"'-T ). i ,Ac ~/{ow Al~~Y\-fs

Properly Owner Signature (required) Date

Applicant Signature

Review For office use onl Date of Publication Date on Planning Commission Agenda

Action Taken By Commission:

AcUon Taken By City Council:

City Council Resolution I Ordinance Number

Fee Paid 44 CHECKLIST FOR REZONING REQUESTS

1. Applicant (Name/Address/Tel: Valley Assisted Living, LLC, 9302 25th Street South, Fargo, ND 58104, Regan Rohl, 701-781-0303.

2. General location of the request: South of Valley Home assisted Living at the intersection of Highway 32 and Greenwood Street. Valley Assisted Living, LLC, 101 Highway 32 South, Thief River Falls, Minnesota 56701.

3. Proposed use and/or zoning: The owner is Requesting that the zoning be amended from General Residential District (R-2) to Multi-Family Residential District (R~4) to allow for the construction of multi family residential housing.

4. Dimension of the request: Frontage • 1,320' Depth - 194'

5. Area of property in request= Sq. Feet - 255,549 Acres-5.87

6. Existing characteristics: Zoning - General Residential Use: Greenspace

Conforming - Yes Non-Conforming - No

7. Adjacent land use: The existing property is being used primarily as greenspace. The location borders Valley Home to the north, Highway 32 to the east, Minnesota Northern railroad to the west and Greenwood Street to the south.

8. Adjacent zoning districts= The location borders General Residential District (R2) to the north, General Industrial District (1-2) to the west and south, and General Business District (C-2) and Park and Recreation District (PR) to the east.

9. Are Wetlands or Shorelands impacted by this request? No (see attached letter).

9. Characteristics of soils: According to the "Pennington County Soil Survey," soils are predominately Wyandotte Clay Loam. This soil consists of nearly level, poorly drained, in plane or slightly concave basins on glacial lake plains.

11. Has an adequate site plan been provided? No.

12. What provisions have/can be made for utilities, drainage, and adequate easements? This site is served by Highway 32 and Minnesota Northern railroad ditches for drainage and water main bisects the site from east to west. Sanitary sewer is located at the northeast corner of the site but needs to be verified for depth to determine if it can serve this site. A sanitary sewer service line could be installed to Brooks Avenue with significant cost if the development cannot be served from the existing sewer on site.

13. Is the proposed rezoning consistent with the Comprehensive Plan? Yes. The comprehensive plan indicates this area as high-density residential.

14. Have other pertinent segments of the Comprehensive Plan been considered? NIA

15. Is the area platted? No. 45 If so, will the existing lots conform to the requested district? Yes.

16. If the area is to be residential: Yes

A. What is the holding capacity? The maximum holding capacity is 112 units, subject to unit area and impervious area requirements.

B. Street access? This site will be accessed from Highway 32 through an access relocation agreement with the Minnesota Department of Transportation.

C. Has a subdivision plan been submitted? No.

17. If the request is for a commercial use: No.

A. Is there an economic need? NA

B. Is there a provision for adequate screening? NA

C. What is the traffic situation? NA

D. What is the distance to schools? NA

18. If the request is for industrial: NIA

A. Is the area readily accessible to major thoroughfares? NA

B. Is it served by a railroad? NA

C. Is it suitably separated from a residential area? NA

19. Comments: The owner of this property has received a purchase agreement with contingencies on rezoning, sanitary sewer availability and adequate access. These are all significant hurdles but are necessary if this property will ever be developed.

See RCA, Notice of Hearing, Checklist, Site Map, Access Reconfiguration Sketch, Zoning Map and Comprehensive Plan.

46 CRITERIA FOR GRANTING ZONING AMENDMENTS

In granting a request for a rezoning, the City Council shall consider the effect of the proposed zoning amendment upon the health, safety, morals, and general welfare of occupants of surrounding lands. Among other things, the City Council shall make the following findings where applicable:

1. That the rezoning conforms to the Comprehensive Plan for the City, as well as, present land uses.

2. That the rezoning will not impede the normal and orderly development and improvement of surrounding property for uses predominant in the area.

3. That the rezoning will not adversely affect property values of adjacent landowners.

4. That the rezoning will not impose other undue hardship on adjacent landowners such as noise, electrical display signs, odors, or other nuisances.

5. That necessary utilities be available to serve the use intended.

6. That additional public services needed by the rezoning be considered.

7. That alternate areas previously zoned for the intended use be considered.

8. That there is a public need for the proposed land use.

47 I -- R-3 ------~ L - - - - ..__,...... _..-.....1 -- --

1-2 R-4

I I I 1-2 I GOV'T LOT 4 I I I (

8 ~'101' ~0/.( ~.... , ;:;-- ~ ~r. ~ PENNINGTON SOIL & WATER ~ ~ ill "'1 .. ' ?ft CONSERVATION DISTRICT 20 l Sherwood Avenue South • Suite 3 Thief River Falls, MN 56701-3407 Phone: (218) 683-7075 • Fax: (2"18) 68 l-·3259 ~TJON oV. www.nwrnnswcd oig/pennington

Septem bcr 9, 2016

Mark Borseth City of Thief River Falls P. 0. Box 528 Thief Riv~r Fa.lls, Ml'>i 5670 I

Oear Mark:

In regards to your request for a wetland determination on the Valley Home So,;iety Property located in the southwest quarter of section 33 in North Township, I visited the site on September 2, 2016. You indicated that the owner expn~ssed interest in selling the property to plat for development.

The Pennington County Soi! Survey, LiOAR contour maps, National Wetland Inventory Map, aerial photos /Tom 1953, 1980-2013 and an on-site visit was utilized to make this determination on the property.

The National Wetland Inventory shows a dug pond on the site. Our photos show this created in l 980 and was filled in 2008 and land shaped back to previous grade.

According to the Pennington County Soil Survey this property is all f74A, a non-hydric soii. The vegetation was lawn (bluegrass, ~;tc.). Difficult to determine if hydrophytic when mowed regularly. Th.e land is gcneral!y flat with no noticeable depressions other than surface ditches to remove surtacc wat~r so 110 hydrolDgy. If there were a wetland in :he area of the ciug pond, it would be an incidental wetland as it is a result of activities that did not intend to create a wetland, Therefore the property is not under the jurisdiction of the Wetland Conservation Act as no wetiands exist.

1f you need any further assistance do not hesitate to call or stop by the office.

Cc: Steve Hofstad, MN B WSR Mike Flaagan, Pennington Co. TEP

49 50 .1 I I i I J f z I Oz 4 - == j • !:::: u) c :I c~ <( ~ wa::: IllI I l 1 il ll~ ~ ~ "~ • l t ' 0 1- ::c ~ >- > !:: w~ ...J ~ ...J 0 .:a: I- >

WIWI-- ..., .., I

51 Proposed Land Use - Thief River Falls September 20, 201 9 :... .

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Land Use Cat egory - Hghway C

Schools and Publjr; 6utldings

:J M e1nut(llr:l11rarl Home Paff.\

~ CfJnlr

- Ge11 eral Co111frn:rcial

• • •.: , ,'3' •:: '•Cf': "t. • \ · ~.( 1 ;.i ( ~ 'l .• I 'l, \~ , \ 1 - ··~ ·· ...... : ~: : ·.: ': \' . " ;• ~ ... \' : . City of Thief River falls #8.04

CITY ADMINISTRATOR PHONE: 218-681-2943 405 Third Stn:et East [email protected] Thit:fRiver Falls MN 56701-052!1 www.citytrt:net

Request for Council Action

DATE: July 21, 2020

SUBJECT: Berger Enterprises, Inc. Mediation Settlement

RECOMMENDATION: it is respectfully requested that the City Council approve the proposed mediation agreement and authorize the City administrator to sign the same on behalf of the City of Thief River Falls.

BACKGROUND: The City withheld approximately $135,000.00, as payments due to subcontractors and as liquidated damages per the contract terms in regard to the addition to the Water Treatment plant building.

Several subcontractor's sued Berger Enterprises, Inc., the general contractor, on its payment bond. Berger Enterprises, Inc. sued the City as a Third Patty Defendant.

The matter went to court ordered mediation. A tentative agreement was reached with approval of"Wayne Johnson, Angie Philipp and the City Attorney. Main goal was to make sure the subcontractor's get paid and to obtain an offset for liquidated damages.

Mediation agreement, subject to council approval, calls for City to make an $80,000.00 payment to Berger Enterprises, Inc.'s attorney's trust account to be used to pay off remaining balance due to subcontractors. No disbursement will be made from said trust account until a release for the City is obtained.

City will receive offset of $55,000.00, which City views as reasonable liquidated damages for delay in completion and in regard to what is alleged to be some substandard work that was performed.

All parties will be responsible for their own attorney's fees and costs.

LEGAL: The mediation agreement must be approved by council resolution and authorize a specific pa1ty to sign on behalf of City.

FINANCIAL CONSIDERATIONS: The City saves $55,000.00.

DEPARTMENT/RESPONSIBLE PERSON: City Administrator and Water Treatment Plant Supervisor.

53 MEOlATEO SETTLEMENT AGREEMENT

This Mediated Settlement Agreement ("Agreemenf') is entered effective the 13th day of

July, 2020, between Granite Re, Inc. ("ORI"), Berger Enterprises, LLC ("Berger"), Wells

Concrete Products Co. ("Wells"), Q&Z Enterprises ("Q&Z"), Duane E. Langness d/b/a Excel

Steel Structures ("Excel"), and the City of Thief River Falls ("City") relating to the claims, counterclaims, and defenses that were asserted, or that could have been asserted, in that action captioned Granite Re, Inc. v. Berger Enterprises, LLC, Wells Concrete Products Co., Q&Z

Enterprises, Duane E. Langness dlbla Excel Steel Structures v. City ofThief River Falls;

Pennington County District Court File No.: 57-CV-19-337 ("Lawsuit") that relates, primarily, to project performance and payment claims and disputes arising out of a public works project for the construction of a public works project commonly known as WTP Filers and Residuals

Improvements ("Project") under a contract between the City, as owner, and Berger, as general contractor, and on which GRI provided public peifo1mance and payment bonds ("Project

Payment Claims"). At times in this Agreement, ORI, Berger, Wells, Q&Z, Excel and the City may be collectively referred to as "the Parties."

.l\!IEDIATION AGREEMENT

Attached and incorporated herein by this reference is the Agreement to Mediate signed by the Parties, who each acknowledge that this is a binding agreement relating to settlement of claims asserted in the Lawsuit as reached through the process of mediation. The Parties further acknowledge that, pursuant to the requirements of the Minnesota Civil Mediation Act, they have been advised that:

a. the mediator, Timothy C. Cook, has no duty to protect either of their interests or

to provide them with any information about their legal rights;

54 b. signing a mediated settlement agreement may adversely affect their legal rights;

c. the Parties may, and in fact have, consulted with an attorney before signing this

Agreement in order that they may be certain of their rights; and

d. This is a mediated settlement reached pursuant to the provisions and requirements

of the Minnesota Civil Mediation Act and case law interpreting the same. The

Parties understand and acknowledge that it is a binding and conclusive resolution

of the Lawsuit pursuant to the terms of this Agreement. The Parties have

mediated for a full session on July 2, 2020, and have now reached final agreement

with the assistance of the mediator.

Now, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree to the following terms and conditions of settlement of the

Lawsuit:

1. Agreement Subject to Approval by City. The City's commitments under this

Agreement, including its payment under Paragraph 3, are subject to the City's presentation of this Agreement and the approval of the same by the City's goveming board. The City's representatives, including its legal counsel participating in this mediation, shall make recommendations to the city council to accept the terms and conditions of this Agreement at its

July 21, 2020 meeting.

2. Spirit and Intent of this Agreement. Through this Agreement, the Parties intend to fully resolve all claims asserted in the Lawsuit, including all of the Project Payment

Claims. Other than their respective rights to enforce any right, term, condition, obligation, or defense under this Agreement, the Parties acknowledge that they shall be fully and finally done with all of their Project Payment Claims.

Granite Re v. Berger Enterprises, el al. Mediated Settlement Agreement Court File No.: 57-CV-19-337 #2200948 Page 2of10 55 3. Settlement Payments. The Parties agree to settle their disputes in the Lawsuit, including the Project Payment Claims, on the following basis:

a. City Payment to Berger. To fully and finally settle all of Berger's Project

Payment Claims, the City shall pay Berger the total sum Eighty Thousand and

no/100 Dollars ($80,000.00) ("Settlement Payment"). Berger shall use the

Settlement Payment to pay ORI> Wells, Q&Z, and Excel as provided for in the

confidential exhibits in Paragraphs 3 (b-e ).

The City's commitments to make the Settlement Payment is not confidential in

that the City has statutory obligations and commitments to disclose the same to

the public in the course of its governmental operations. However, all other

Parties to this Agreement are not bound by statutory obligations and they wish

and intend that the resolution of their separate resolutions of the Project Payment

Claims shall be confidential as between them and the world.

b. Berger Payment to Wells. To settle the Wells Project Payment Claims, Berger

shall pay Wells the confidential amount listed in the attached Exhibit A. Exhibit

A shall only be disclosed to and signed by both Berger and Wells.

c. Berger Payment to Q&Z. To settle the Q&Z Project Payment Claims, Berger

shall pay Q&Z the confidential amount listed in the attached Exhibit B. Exhibit

B shall only be disclosed to and signed by both Berger and Q&Z.

d. Berger Payment to Excel. To settle the Excel Project Payment Claims, Berger

shall pay Excel the confidential amount listed in the attached Exhibit C. Exhibit

C shall only be disclosed to and signed by both Berger and Excel.

Granite Re v. Berger Enterprises. et al. Mediated Settlement Agreement Court File No.: 57-CV-19-337 #2200948 Page 3of10 56 e. Berger Payment to GRI. To settle the ORI indemnity obligations that Berger

and its individual indemnitors have to ORI under applicable bond and indemnity

agreements, Berger shall pay ORI the confidential amount listed in the attached

Exhibit D. Exhibit D shall only be disclosed to and signed by both Berger and

ORI.

f. Balance of Settlement Pavment to Berger for Payment of Other Project

Payment Claims. After first paying the obligations under Paragraphs 2 (b-e ),

Berger shall use the remaining balance of the Settlement Payment by paying

remaining Project claims owed to other of its Project subcontractors or suppliers,

or to reimburse Berger for out·of-pocket payments made to the same. Such

unpaid subcontractors include, but are not necessarily limited to, Custom Air,

Dietzler Electric, and Twin City Garage. Berger shall resolve such claims by

direct negotiations.

I g. Manner and Timing of Payments. The City's Settlement Payment shall be

made promptly after the City's approval of this Agreement, if approved, at its

next scheduled council meeting in July, 2020. If and when approved by the

council, the City's Settlement Payment shall be by check made payable to the

mediator's trust account by check made payable to "Cook Law & ADR, PLLC

Trust Account" and shall be delivered to the mediator without delay. After such

payments clear banking channels, the mediator shall release payments to Wells,

Q&Z, Excel, and OR1 as provided in the confidential exhibits in a manner as

directed by counsel for Wells, Q&Z, Excel, and GRI. The balance of the

Settlement Payment shat l be released to Berger for it to continue making

Granite Re v. Berger Enterprises, et al. Mediated Settlement Agreement Court File No.: 57-CV-19-337 #2200948 Page 4of10 57 payments to other Project subcontractors pursuant to its negotiations and payment

plans with the same. All payee accounts shall provide a W-9 as a condition of

payment.

4. Berger Payment Representation and Indemnity. Berger represents and warrants that it will use the Settlement Payment to pay Project payment and payment bond obligations owed the Parties, and to other of its Project subcontractors and suppliers. With such payments, Berger represents that it shall have finally resolved payment obligations or commitments owed on the Project. Berger shall fully defend, indemnify, and hold both the City and GRI hannless from any other Project payment or payment bond claims owed to others.

5. Mutual Releases. Upon the payment or receipt of the Settlement Payment and the other payments to be made in Paragraph 2, and except for the reserved claims under

Paragraph 6, and except further for the Parties' right to enforce any right, term, condition, obligation, or defense under this Agreement, the Parties, on behalf of themselves, and on behalf of each and all of their respective past and present representatives, attorneys, officers, directors, shareholders, members, agents, employees, insurers, heirs, successors, and assigns, shall and do hereby fully and finally release each other, and each and all of their respective past and present representatives, attorneys, officers, directors, shareholders, members, agents, employees, insurers, heirs, successors, and assigns, from all contracts, change orders, exh·a claims, claims for delays, claims for liquidated damages, claims for defective concrete flooring, claims for improper elevations of the building structure, claims for punchlist work, claims for improperly placement or setting of plumbing work, and all other demands, damages, counterclaims, causes of action, defenses, or claims of whatever other kind or nature, whether sounding in contract, tort, or warranty, whether based in law or equity, that the Parties may have, or may claim to

Granite Re v. Berger Enterprises, et al. Mediated Settlement Agreement Court File No.: 57-CV- 19-337 #2200948 Page 5 of lO 58 have, against each other arising out of or related to the Project and the Project payment and

performance bonds issued by GRI, including all claims that were asserted, or that could be asserted, in the Lawsuit and further including aJl claims that in any way arise out of or relate to the Project Payment Claims.

6. Reserved Claims. Nothing in the mutual release provisions under p~araph 5 of this Agr~ement are intended to release, settle, or discharge any claims that the City may have against Berger, and that Berger may have against any of its Project subcontractors including, but not limited to, the Parties to this Agreement, for any construction defects in the Project for any future discovered defects in the same, except that all defects claims that have been previously been presented and asserted by and between the Parties in the Lawsuit and that have been resolved in this Agreement through the City's requested and accepted deductions from the final

Project payment amounts otherwise owed to Berger are fully released. The City represents that at this time it is not aware of any facts or circumstances giving rise to any such future construction defect claims. The City reserves all of its rights and remedies with respect to any such claims. Berger, and all of the Parties, fully reserve all of their defenses to any such future claims. To be clear, the Reserved Claims and defenses under this Paragraph are only reserved as between the City, Berger, and the Project subcontractors and suppliers. All of the Parties are fully and finall y releasing GRI from any and all Project perfonnance or payment bond claims, known or unknown, now existing or as may be discovered in the future, including all Project warranty claims. Granite Re and the City also fully reserve their right to fully enforce Berger's obligation to fully defend, indemnify, and hold both the City and GRI haimless from any other

Project payment or payment bond claims owed to others.

Granite Re v. Berger Enterprises, et al. Mediated Settlement Agreement Court File No.: 57-CV-19-337 #2200948 Page 6of10 59 7. Resolution of GRl's Indemnification Claims against Berger. GRI fully and

finally releases Berger, and all of Berger's individual indemnitors, if any, from any and all indemnity claims, including all claims for attorneys' fees and costs, that GRI has incurred, or has claimed to have incurred, in the investigation of the Project bond claims, in the conunencement and resolution of the Lawsuit, and in completing this Agreement. GRI and

Berger fully reserve all rights, claims, and defenses that they have, or may claim to have, against each other on any and all other project payment or performance bonds that GRI may have previously issued to Berger.

8. Dismissal of Lawsuit. Upon notice of the City's approval of this Agreement under Paragraph 1, the mediator shall provide a "Notice of Settlement" letter to the Honorable

Tamara Yon and her staff in the Lawsuit. The Notice of Settlement letter shall be in the form attached as Exhibit E. Upon confirmation as to the making and receipt of all of the settlement payments identified in Paragraph 3 and its confidential exhibits, the Lawsuit shall be dismissed, with prejudice. The dismissal stipulation shall be in the form attached as Exhibit F. Counsel for the Parties hereby provide the mediator with approval to append their electronic signatures to the dismissal stipulation prior to its filing. The mediator shall file the same after confirming payments. The mediator shall complete such filing, and the processing of payments, at no further charge to the Parties.

9. Non-Admission of Liability. Nothing in this Agreement, including the payments provided herein shall constitute an admission of fault or responsibility by any of the Parties to any of the other Parties. This settlement is made in compromise of disputed claims. The Parties expressly deny all liability for the other's claims. The Parties are settling their disputes to avoid the time, uncertainty, and expense of litigation and to simply buy their peace with each other.

Granite Re v. Berger Enterprises, et al. Mediated Settlement Agreement Court File No.: 57-CV-19-337 #2200948 Page 7 of IO 60 10. Mediator's Fee. The City, GRI, and Berger shall each pay an equal one-third

(l/3) share of the mediator's always reasonable fee.

11. Signatory AuthorityNoluntary Execution. Each of the signatories to this

Agreement acknowledge that they are signing the same of their own free act and deed, after having had full benefit of legal counsel, and without being under any coercion, promise, or commitment, except as those expressly contained herein. Each of the signatories represent that they have secured the necessary authorizations or approvals of their respective owners, boards of directors, or agents to execute this Agreement on their behalf and to bind themselves, their company, and their clients.

12. Execution in Counterpart. This Agreement may be signed in counterpart, meaning that not all signatures need appear on the same page of the Agreement for it to be effective. Electronic or facsimile signatmes shall be deemed to operate as originals.

[SIGNATURES APPEAR ON SEPARA TE PAGE]

Granite Re v. Berger Enterprises, et al. Mediated Settlement Agreement Court File No.: 57-CV- 19-337 #2200948 Page 8of10 61 Timothy C. Cook, Mediator

GRANITE RE, INC.

Party Representative

Attorney - David Gregerson I David Hackworthy

BERGER ENTERPRISES, INC.

Party Representative

Attorney -J. Christian Hauser

WELLS CONCRETE PRODUCTS Co.

Party Representative

Attorney-Kyle E. Hart

Granite Re v. Berger Enterprises, et al. Mediated Settlement Agreement Court File No.: 57-CV-19-337 #2200948 Page 9of10 62 Q&Z ENTERPRISES

By: Party Representative

Attorney - Michael J. Morley

DUANE E. LANGNESS D/B/A EXCEL STEEL STRUCTURES

Party Representative

Attorney - Richard J. Linnerooth

CITY OF THIEF RIVER FALLS

Party Representative

Attorney - Delray Sparby

Granite Re v. Berger Enterprises, et al. Mediated Settlement Agreement Court File No.: 57-CV- l 9-337 #2200948 Page 10of10 63 CITY OF THIEF RIVER FALLS I #8.04 I PROPOSED RESOLUTION

RESOLUTION NO. : APPROVAL OF BERGER ENTERPRISES, INC. MEDIATION SETTLEMENT

A request for council action was reviewed. Following discussion, Councilmember __ introduced Resolution No., being seconded by Councilmember__ , that:

WHEREAS, the City withheld approximately $135,000.00, as payments due to subcontractors and as liquidated damages per the contract terms in regard to the addition to the Water Treatment plant building; and

WHEREAS, several subcontractor's sued Berger Enterprises, Inc., the general contractor, on its payment bond. Berger Enterprises, lnc. sued the City as a Third Party Defendant; and

WHEREAS, the matter went to court ordered mediation. A tentative agreement was reached with approval of Wayne Johnson, Angie Philipp and the City Attorney. Main goal was to make sure the subcontractor's get paid and to obtain an offset for liquidated damages; and

WHEREAS, mediation agreement, subject to council approval, calls for City to make an $80,000.00 payment to Berger Enterprises, Inc.'s attorney's trust account to be used to pay off remaining balance due to subcontractors. No disbursement will be made from said trust account until a release for the City is obtai ned~ and

WHEREAS, City will receive offset of $55,000.00, which City views as reasonable liquidated damages for delay in completion and in regard to what is alleged to be some substandard work that was performed. All patties will be responsible for their own attorney's fees and costs.

THEREFORE, BE IT RESOLVED, by the City Council, to approve the proposed mediation agreement and authorize the City administrator to sign the same on behalf of the City of Thief River Falls.

Presented at the July 21, 2020 Council Meeting

Introduced. by: ______

Seconded by: ______~

Roll Call (if required): Holmer Howe Sollom Lorenson Brown Prudhomme Aarestad - - Narverud

Notes: ------~

64 PURCHASE AGREEMENT

THIS AGREEMENT, Made and entered into this day of March, 2018, by and between Duane Gonsorowski and Diane L. Gonsowrowski, as joint tenants ("Buyer"), and City of Thief River Falls, a municipal corporation under the laws of the State of Minnesota ("Seller"), WITNESSETH:

In consideration of the mutual covenants and conditions contained herein, it is hereby agreed by and between the parties as follows:

1. SALE AND PURCHASE OF PROPERTY. Seller hereby agrees to sell and Buyer hereby agrees to buy that certain real property located in the County of Pennington and State of Minnesota described as follows:

That part of Lots 2, 3, and 4, of Block I, Zeh's Addition to Thief River Falls, Minnesota described as follows:

Commencing at the Southwest Comer of said Block 1; thence North 00 degrees 41 minutes 46 seconds East, assumed bearing, along the West Line of said Block l, a distance of 218.20 feet to the point of beginning; thence South 89 degrees 18 minutes 14 seconds East, parallel to the South Line of said Block 1, a distance of 196.60 feet to a point on the East Line of Lot 4, said Block 1 being a distance of218.20 feet North of the southeast Corner of said Lot 4; thence North 00 degrees 41 minutes 46 seconds East, along the East Line of said Lot 4 and a northerly extension of said East Line of Lot 4, a distance of 276. 79 feet, more or less, to the North Line of said Block I; thence North 89 degrees 18 minutes 14 seconds West, along the North Line of said Block 1, a distance of 196.60 feet, more or less, to the Northwest Comer of said Block 1; thence South 00 degrees 41 minutes 46 seconds West, along the West Line of said Block 1, a distance of 276.79 feet, more or less, to the point of beginning. The described parcel contains 1.25 acres, more or less, and is subject to any easements, restrictions, or reservations of record, if any.

(hereafter "Property").

2. PURCHASE PRlCE. The purchase price to be paid by Buyer to Seller for the Property shall be $40,000.00 which shall be payable as follows:

2.1 . Earnest Money. Earnest money of $805.00 deposited in the Trust Account of Ihle Sparby & Haase PA, the receipt of which is hereby acknowledged. If the transaction contemplated by this Agreement shall not close due to the failure of any of the contingencies, warranties, or representations hereafter set out, or due to the mutual cancellation of this Agreement by Buyer and Seller, the earnest money shall be returned to Buyer; and

65 2

2.2. Balance of Purchase Price. The remaining balance of $39, 195.00 shall be paid in cash on the Date of Closing contingent upon the prior satisfaction of all conditions and covenants set forth in this Agreement.

3. CONTrNGENCIES. This Agreement and closing hereunder shall be and hereby is, made contingent upon each of the following:

3. 1. Seller has and will have on the date of closing, good and marketable title to the Property, free and clear of all assessments, liens, and encumbrances, except easements, restrictions, and reservations of record;

3.2. All warranties and representations of Seller hereunder are true and correct as of the date hereof, and on the Date of Closing; and

3.3. If all of the foregoing contingencies have not been satisfied or waived by Buyer on or before the Date of Closing as is expressly agreed upon by the parties hereto, then this Agreement may be terminated at Buyer's option, and upon written notice of termination, any Earnest Money deposited by Buyer shall be returned to Buyer and upon such return, neither party shall have any further rights or obligations with respect to this Agreement or the Property.

4. EVIDENCE OF TITLE. Buyer shall, within a reasonable time after the date of this Agreement, obtain an abstract of title to the Property, certified to date and including proper searches for bankruptcies, state and federal judgments, liens, real estate taxes, and assessments. Buyer shall be allowed 20 days after receipt of the abstract for examination of the title to the Property and the making of any objections thereto, which objections must be made in writing or shall be deemed to be waived. If any obj ections are so made, Seller shall be allowed 120 days to make title to the Property marketable. Pending correction of title to the Property, the payments required by this Agreement shall be postponed.

4.1 . Remedy. If title to the Property is not marketable and is not made so within 120 days from the date of written objection thereto as set out above, Buyer shall have the option of: 4. 1.1. Declaring this Agreement null and void, and in such event, receiving a refund of all earnest money; or

4.1.2. Waiving any defect in title, and in such event, proceeding to close the transaction contemplated by this Agreement.

5. REPRESENTATIONS AND WARRANTIES BY SELLER. Seller represents and walTants to Buyer that:

5.1. On the Date of Closing, Seller wi ll own the Property being conveyed hereby free and clear of all liens, charges, and encumbrances, except easements, restrictions, and reservations of record~

66 3

5.2. Seller has received no notice of any action, litigation, investigation, or proceeding of any kind pending against Seller, nor to the best of Seller's knowledge is any action, litigation, investigation, or proceeding pending or threatened against the Property, or any part thereof;

5.3. Seller has complied with all statutes and ordinances regulating the sale and use of the Property;

5.4. To the best of Seller's knowledge, there are no intended public improvements or special assessments affecting the Property which will result in any charge being levied or assessed against it or in the creation of any lien against it;

5.5. Seller has not entered into any other contract for the sale of the Property, nor as of the Date of Closing will there be any first rights ofrefusal or options to purchase the Property; and

5.6. The Seller makes no other warranties or representations and the Buyer has not relied on any such warranties or representations, expressed or implied, relative to the condition of the Property or any other matter relative to this Agreement other than those expressly stated herein. Buyer acknowledges that Buyer has ample opportunity to thoroughly inspect the Property and is purchasing the Property in an "AS IS" condition without any obligation on the part of Seller to make repairs or improvements thereto.

6. CLOSING. The date on which the closing of the transaction herein described shall occur (the "Date of Closing'') shall be on or before September 30, 2020. On the date of Closing, Seller shall execute and deliver to Buyer, or cause to be executed and delivered to Buyer, the following:

6.1. A warranty deed conveying the Property to Buyer, free and clear of all liens, charges, and encumbrances, except easements, restrictions, and reservations of record; and

6.2. Electronic Certificate of Real Estate Value.

7. COSTS AND PRORATIONS. Buyer and Seller hereby agree to the following prorations and allocations of costs in connection with this Agreement and the transactions contemplated hereby:

7 .1. Seller's costs shall include: All costs necessary to establish good and marketable title; Deed preparation and required certificates; Document Preparation and recording fees for documents necessary to transfer title; cost of an abstract or 40 year title search; cost of the purchase agreement; and All Minnesota State deed tax.

7 .2. Buyer's costs shall include: Costs associated with financing; All costs oftitle examination; All recording charges in connection with recording the deed; and The cost of any closing fee for conducting the title-transfer portion of the closing.

67 4

7.3. Real estate taxes and installments of special assessments due and payable in 2019 and prior years shall be paid by Seller. Real estate taxes and installments of special assessments due and payable in 2020 shall be prorated between Seller and Buyer to the Date of Closing. Since this is a split of the real prope1ty, taxes for 2020 will need to be paid in full at time of closing.

7.4. Seller and Buyer shall each be responsible for their respective attorney's fees in connection with the negotiation, preparation, and closing of this Agreement and the transactions contemplated hereby.

7.5. Seller and Buyer shall be responsible for all real estate or business brokerage fees of any nature that they incu!1'ed.

8. DAMAGE, DESTRUCTION, EMINENT DOMAIN.

8.1. If, prior to closing, the Property or any part thereof shall be damaged or destroyed by fire, the elements, or any cause, this Agreement shall become null and void, at Buyer's option. If Buyer elects to proceed and to consummate the purchase contemplated hereby, despite said damage or destruction, there shall be no reduction in or abatement of the purchase price, and Seller shall assign to Buyer all of Seller's right, title, and interest in and to all insurance proceeds resulting, or to result, from said damage or destruction; and

8.2. If, prior to closing, the Property or any part thereof shall be taken by, or be threatened with taking by eminent domain, this Agreement shall become null and void, at Buyer's option. If Buyer elects to proceed and to consummate the purchase contemplated hereby despite said taking, there shall be no reduction in or abatement of the purchase price, and Seller shall assign to Buyer all the Seller's right, title, and interest in and to any award made, or to be made, in the condemnation proceeding.

9. ASSIGNMENT. Buyer shall not have the right to assign its interest under this Agreement without first obtaining the \mtten consent of Seller. Seller shall not unreasonably withhold consent.

IO. SURVIV AL. All of the terms, covenants, conditions, representations, warranties, and agreements contained in this Agreement shall survive and continue in force and effect and shall be enforceable after the closing.

11. NOTICES. All notices and other communications required herein shall be in writing, mailed by certified mail, retwn receipt requested, to the last known address of the other party, to be effective on the date of mailing. The address of each party, unless otherwise notified as required herein, is as follows:

6$ 5

Seller: Buyer:

Duane Gonsorowski City of Thief River Falls 3 I 5 Crocker A venue North PO Box 528 Thief River Falls, MN 56701 Thief River Falls, MN 56701

12. TITLES AND HEADINGS. The titles and headings used herein are for convenience only and do not constitute any part of this Agreement.

13. ENTIRE AGREEMENT, INVALIDITY. This Agreement sets forth the entire arrangement between the parties and there are no representations or warranties except as expressly set forth herein. No amendment or modification of this Agreement shall be valid unless in writing and signed by the parties hereto. Should any clause or provision of this Agreement become invalid for any reason, such invalidity shall not result in the invalidity or unenforceability of any other clause or provision of this Agreement.

14. SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon the parties hereto, their heirs, personal representatives, successors and assigns.

15. GOVERNING LAW. This Agreement shall be governed and construed in accordance with the laws of the State of Minnesota.

16. EXECUTION. This Agreement may be executed in any number of counterparts, each of which counterparts, when so executed and delivered, shall be deemed to be an original and all of which counterparts, taken together, shall constitute but one and the same Agreement.

17. WELL. Seller certifies that Seller does not know of a well on the Property.

IN WITNESS WHEREOF, The parties hereto have caused this Agreement to be executed as of the day and year first above written.

BUYER: SELLER:

City of Thief River falls

By: ______~ By: ______Duane Gonsorowski Its Mayor

By:______By: ------Its City Administrator Di ane L. Gonsowrowski

69 6

This Agreement was drafted by:

Delray Sparby Ible Sparby & Haase PA 312 Main Avenue North POBox574 Thief River Falls, MN 56701

70 CITY OF THIEF RIVER FALLS I #a.05 I PROPOSED RESOLUTION

RESOLUTION NO. : RESOLUTION APPROVING THE ENTERING INTO OF A PURCHASE AGREEMENT FOR THE CONVEYANCE OF THAT REAL PROPERTY DESCRIBED HEREIN

WHEREAS, The City of Thief River Falls is the owner of the following described Real Property, (hereafter "Real Property"), located in the County of Pennington and State of Minnesota, to wit:

That part of Lots 2, 3, and 4, of Block 1, Zeh's Addition to Thief River Falls, Minnesota described as follows:

Commencing at the Southwest Comer of said Block 1; thence North 00 degrees 41 minutes 46 seconds East, assumed bearing, along the West Line of said Block 1, a distance of 218.20 feet to the point of beginning; thence South 89 degrees 18 minutes 14 seconds East, parallel to the South Line of said Block 1, a distance of 196.60 feet to a point on the East Line of Lot 4, said Block 1 being a distance of 218.20 feet North of the southeast Comer of said Lot 4; thence North 00 degrees 41 minutes 46 seconds East, along the East Line of said Lot 4 and a northerly extension of said East Line of Lot 4, a distance of 276.79 feet, more or less, to the North Line of said Block l; thence North 89 degrees 18 minutes 14 seconds West, along the North Line of said Block 1, a distance of 196.60 feet, more or less, to the Northwest Comer of said Block 1; thence South 00 degrees 41 minutes 46 seconds West, along the West Line of said Block 1, a distance of 276.79 feet, more or less, to the point of beginning. The described parcel contains 1.25 acres, more or less, and is subject to any easements, restrictions, or reservations ofrecord, if any.

and

WHEREAS, The City does not need said real property and desires to sell said Real Property and Duane Gonsorowski and Diane L. Gonsorowski desire to purchase said real property for the price of $40,000.00, and

WHEREAS, The City Cowicil has reviewed the te1ms and conditions of said sale, as set forth in a proposed purchase agreement,

NOW, THEREFORE, BE IT RESOLVED, By the City Council of Thief River Falls, Minnesota, that the sale of said Real Property has no relationship to the Comprehensive Municipal Plan or the Council finds that the sale is in compliance with the same and the Thief River Falls Planning Commission is therefore not required to review said sale.

BE IT FURTHER RESOLVED, That the Mayor and City Clerk are authorized and directed to sign a purchase agreement and deed of conveyance upon compliance with the terms of the purchase agreement conveying said Real Property to Duane Gonsorowski and Diane L. Gonsorowski, as joint tenants, upon the terms and conditions set forth in said purchase agreement.

71 Presented at the July 21, 2020 Council Meeting

Introduced by: ______

Seconded by: ______~

Roll Call (if required): Holmer Howe Sollom Lorenson Brown _ Prudhomme Aarestad Narverud

Notes:------

72 City of Thief River falls #8.06

A D.il!MSTFU TION D£PART.\!l£i\"T PHO E: 2 18-68 1-5816 FAX: 2 18-681 -8225 -W5 rh1 rd treet South [email protected] ThiefRiver Falls MN 56701 -0528 www.citytrf.net

Request for Council Action

Date: 07/2112020

Subject: Ratify Sale of Real Property to First Street Estates of Thief Ri ver Fall s, LLLP, a Minnesota Limited Liability Limited Partnership.

Recommendation: It is respectfully requested the council consider the following recommendation pursuant to action previously taken by the Council :

Motion To: To ratify the sale by the City of real property located in Pennington County and State of Minnesota described as fo llows:

Parcel 1: That part of Lot 2, Block 1, NOPERS FIFTH ADDITION, described as follows: Beginning at the southwest comer of said Lot 2; thence South 89 degrees 29 minutes 29 seconds East, along the south line of said Lot 2, a distance of 325.55 feet; thence orth 00 degrees 30 minutes 31 seconds East a distance of 379.80 feet to the north line of said Lot 2; thence South 88 degrees 33 minutes 09 seconds West, along the north line of said Lot 2, a distance of 39 .27 feet; thence South 88 degrees 44 minutes 44 seconds West, along the north line of said Lot 2, a distance of289.97 feet to the northwest comer of said Lot 2; thence South 00 degrees 02 minutes 22 seconds East, along the west line of said Lot 2, a distance of 369.55 feet to the point of beginning.

Parcel 2: That part of Lots 2 and 3, Block 1, OPERS FIFTH ADDITIO , described as fo llows: Commencing at the southwest comer of said Lot 2; thence South 89 degrees 29 minutes 29 seconds East, along the south line of said Lot 2, a distance of 325.55 feet to the point of beginning; thence continue along the south line of said Lots 2 and 3, South 89 degrees 29 minutes 29 seconds East a distance of 228.97 feet; thence orth 00 degrees 30 minutes 31 seconds East a distance of 387.62 feet to the north line of said Lot 3; thence South 88 degrees 33 minutes 09 seconds West, along the north line of said Lots 2 and 3, a distance of 229. 10 feet; thence South 00 degrees 30 minutes 3 1 seconds West a distance of 3 79.80 feet to the point of beginning.

Parcel 3: That part of Lot 3, Block 1, OPERS FIFTH ADDITION, described as fo llows: Commencing at the southwest comer of Lot 2, Block 1, NOPERS FIFTH ADDITION; thence South 89 degrees 29 minutes 29 seconds East, along the south line of said Lots 2 and 3, a distance of 554.52 feet to the point of beginning; thence continue along the south line of said Lot 3, South 89 degrees 29 minutes 29 seconds East a distance of 2 13. 14 feet, to the southeast comer of said Lot 3; thence orth 00 degrees 30 minutes 31 seconds East. along the east line of said Lot 3, a distance of 85 .00 feet; thence North 04 degrees 33 minutes 45 seconds, along the east line of said Lot 3, a distance of 311.43 feet to the northeast comer of said Lot 3; thence South 88 degrees 33 minutes 09 seconds West, along the north line of said Lot 3, a distance of 23 5.30 feet; thence South 00 degrees 30 minutes 31 seconds West a distance of 387.62 to the poi nt of beginning. 73 to First Street Estates of Thief Ri ver Falls, LLLP, a Minnesota Limited Liability Limited Partnership

Background: The City had on a prior occasion authorized the entering into of a purchase agreement and sale of Lots 2 and 3, Block I, 1 opers Fifth Addition (which is the same legal description above, which has now been split into three separate parcels instead of the platted two lots, per the req uest of the developer) on January 1Th 2020. Prairie Lakes Management, LLC, had assigned their interest to First Street Estates of Thief River Falls, LLLP, a Mi nnesota Limited Liability Limited Partnership, which assignment has been reviewed by the City Attorney. The City entered into a purchase agreement described above with Prairie Lakes Management LLC. The ratification is needed in order to provide a clear chain of title in regard to any subsequent title examination and in order to satisfy the closing agent's title company requirements in regard to First Street Estates of Thief River Falls, LLLP, a Minnesota Limited Liability Limited Partnership.

Department/Responsible Person: Angie Philipp, City Administrator

Reviewed by: OS

74 ClTY OF THIEF RIVER FALLS #8.06 PROPOSED RESOLUTION

RESOLUTION NO.: RESOLUTION APPROVING THE ENTERING INTO OF A PURCHASE AGREEMENT FOR THE CONVEYANCE OF THAT REAL PROPERTY DESCRIBED HEREIN

WHEREAS, The City of Thief Ri ver Falls is the owner of the following described Real Property, (hereafter "Real Property"), located in the County of Pennington and State of Minnesota, to wit:

Parcel 1: That part of Lot 2, Block 1, NOPERS FIFTH ADDITION, described as follows: Beginning at the southwest comer of said Lot 2; thence South 89 degrees 29 minutes 29 seconds East, along the south line of said Lot 2, a distance of 325.55 feet; thence North 00 degrees 30 minutes 31 seconds East a distance of 379.80 feet to the north line of said Lot 2; thence South 88 degrees 33 minutes 09 seconds West, along the north line of said Lot 2, a distance of 39.27 feet; thence South 88 degrees 44 minutes 44 seconds West, along the north 1ine of said Lot 2, a distance of 289. 97 feet to the northwest comer of said Lot 2; thence South 00 degrees 02 minutes 22 seconds East, along the west line of said Lot 2, a distance of 369 .55 feet to the point of beginning.

Parcel 2: That part of Lots 2 and 3, Block 1, NO PERS FIFTH ADDITION, described as follows: Commencing at the southwest comer of said Lot 2; thence South 89 degrees 29 minutes 29 seconds East, along the south line of said Lot 2, a distance of 325.55 feet to the point of beginning; thence continue along the south line of said Lots 2 and 3, South 89 degrees 29 minutes 29 seconds East a distance of 228.97 feet; thence North 00 degrees 30 minutes 31 seconds East a distance of 387.62 feet to the north line of said Lot 3; thence South 88 degrees 33 minutes 09 seconds West, along the north line of said Lots 2 and 3, a distance of 229. l 0 feet; thence South 00 degrees 30 minutes 31 seconds West a distance of 379.80 feet to the point of beginning.

Parcel 3: That part of Lot 3, Block 1, NOPERS FIFTH ADDITION, described as follows: Commencing at the southwest corner of Lot 2, Block 1. NOPERS FIFTH ADDITION; thence South 89 degrees 29 minutes 29 seconds East, along the south line of said Lots 2 and 3, a distance of 554.52 feet to the point of beginning; thence continue along the south line of said Lot 3, South 89 degrees 29 minutes 29 seconds East a distance of 213. 14 feet, to the southeast comer of said Lot 3; thence orth 00 degrees 30 minutes 31 seconds East, along the east line of said Lot 3, a distance of 85.00 feet; thence North 04 degrees 33 minutes 45 seconds, along the east line of said Lot 3, a distance of 311.43 feet to the northeast comer of said Lot 3; thence South 88 degrees 33 minutes 09 seconds West, along the north line of said Lot 3, a distance of 235.30 feet; thence South 00 degrees 30 minutes 31 seconds West a distance of 387.62 to the point of beginning.

Subject to a reservation to the City of Thief River Falls of a general utility easement for the location and use of a storm water treatment pond and general utility easement, including rights of ingress and egress for construction, maintenance and operation, over the West 11 O feet of the above described parcel. and

WHEREAS, The City does not need said real property and desires to sell said Real Property 75 and Prairie Lakes Management LLC, did enter into a purchase agreement for said real property for the price of $230,234.00, together with assumption of special assessments in the amount of approximately $129,000.00, and said rights in the purchase agreement were assigned by Prairie Lakes Management LLC to First Street Estates of Thief Ri ver Falls. LLLP, a Minnesota Limited Liability Limited Partnership.

WHEREAS, The City Council has reviewed the terms and conditions of said sale, as set forth in a proposed purchase agreement and subsequent assignment agreement,

1 OW, THEREFORE, BE IT RESOLVED, By the City Council of Thief River Falls, Minnesota, that the sale of said Real Property has no relationship to the Comprehensive Municipal Plan or the Council finds that the sale is in compliance with the same and the Thief Ri ver Falls Planning Commission is therefore not required to review said sale .

BE IT FURTHER RESOLVED, That the Mayor and City Administrator have been authorized and directed to sign a purchase agreement and deed of conveyance upon compliance with the terms of the purchase agreement conveying said Real Property to First Street Estates of Thief River Falls LLLP, as assignee of Prairie Lakes Management LLC upon the terms and conditions set forth in said purchase agreement, and the same are hereby ratified in all respects as to First Street Estates of Thief River Falls LLLP.

Presented at the July 21, 2020 Council Meeting

Roll Call (if required): Holmer Howe Sollom Lorenson Brown Prudhomme Aarestad Narverud

76 06/30/2020 CITY OF THIEF RIVER FALLS INVESTMENT SUMMARY

YIELD OR CURRENT TYPE AND DESCRIPTION MATURITY INTEREST CALL MARKET BANK/BROKER OF SECURITY PAR DATE RATE DATE VALUE RBC Sallie Mae BK Salt lake City Certificate of Deposit - Brokered $165,000 24-Aug-20 1.90% 24-Aug-20 $165,453.75 Al ly Bk Midvale Utah/RSC Certificate of Deposit - Brokered $247,000 09-Nov-20 2.00% 09-Nov-20 $248,699.36 American Express Fed Saving BK Certificate of Deposit - Brokered $210,000 07-Dec-20 2.10% 07-Dec-20 $211 ,841 .70 American Express Fed Saving BK Certificate of Deposit - Brokered $37,000 21-Dec-20 2.10% 21-Dec-20 $37,352.98 Morgan Stanley BK NA Utah CD Certificate of Deposit - Brokered $246,000 08-Feb-21 2.50% 08-Feb-21 $249,544.86 American Express Centurion Bank Certificate of Deposit - Brokered $247,000 05-Apr-21 2.30% 05-Apr-21 $250,838.38 Wells Fargo Bk NA Certificate of Deposit - Brokered $249,000 30-Jun-21 1.60% 30-Jun-21 $252,580.62 Discover BK CD 1.4 Certificate of Deposit - Brokered $120,000 13-Jul-21 1.45% 13-Jul-21 $121 ,598.40 Discover BK CD 1.5 Certificate of Deposit - Brokered $125,000 20-Jul-21 1.50% 20-Jul-21 $126,761 .25 Suntrust Bk Atlanta GA CD CLL Certificate of Deposit - Brokered $246,000 27-Dec-21 1.20% 27-Jun-19 $247,643.28 Goldman Sachs BK SL T Lake City Certificate of Deposit - Brokered $200,000 24-Jan-22 2.95% 23-Jul-19 $208,628.00 Texas Echange Bk Croowley Certificate of Deposit - Brokered $249,000 25-Mar-22 1.00% 27-Apr-20 $252,441 .18 Sallie Mae BK Salt lake City Certificate of Deposit - Brokered $82,000 23-Aug-22 2.35% 23-Aug-22 $85,725.26 BMO Harris Bank Natl Assn Certificate of Deposit - Brokered $183,000 26-Jun-23 0.60% 26-Sep-20 $183,210.45 BMW Bnk North Amer Salt Lake Certificate of Deposit - Brokered $209,000 11 -0ct-23 1.85% 11-Apr-20 $219' 140.68 Comenity Cap Bk Utah CD 1.2 Certificate of Deposit - Brokered $249,000 15-May-24 2.75% 15-May-19 $271 ,081 .32 Morgan Stanley Pvt Bk Certificate of Deposit - Brokered $245,000 27-Feb-25 1.80% 27-Aug-20 $258,430.90 State Bk India New York NY Certificate of Deposit - Brokered $183,000 1O -Jun-25 1.05% 10-Dec-20 $186,392 .82 Defiance Ohio City Sch Dist Certificate of Deposit - Brokered $550,000 01 -Dec-28 0.00% 01-Dec-28 $464,431 .00 RBCINVESTMENTS $4,041 ,796.19

Border State Bank Certificate of Deposit $100,000 16-Dec-19 0.65% 16-Dec-19 $100,000.00 BORDER STATE BANK INVESTMENTS $100,000.00 4M FUND

First Internet Bank of Indiana Certificate of Deposit - Brokered $241,000 16-Sep-20 2.539% $241 ,000.00 Kansas State Bank of Manhattan Certificate of Deposit - Brokered $235,500 20-Nov-20 2.883% $235,500.00 Citadel FCU Certificate of Deposit - Brokered $245,900 21-Dec-20 1.631 % $245,900.00 Sonabank Certificate of Deposit - Brokered $238,800 26-Feb-21 2.538% $238,800.00 Old Plank Trail Community Bank Certificate of Deposit - Brokered $238,800 18-Jun-21 2.247% $238,800.00 Western Alliance Bank Certificate of Deposit - Brokered $245,300 20-Apr-21 1.616% $245,300.00

4MINVESTMENTS $1 ,445,300.00

TOTAL CD INVESTMENTS $5,587,096.19 MONEY MARKET ACCOUNTS Piper Jaffray First American Gov't Obligations Fund 1.43% $3,167,135.16 RBC US Govt Money Market Fund 0.95% $270,232.80 League of Minnesota Cities 4M Money Market Fund 2.16% $1 ,833,861 .14 League of Minnesota Cities 4M Plus Fund 2.20% $25,746.07

TOTAL MONEY MARKET SAVINGS $5,296,975.17

GRAND TOTAL 06/30/2020 $10,884,071 .36 *Interest paid every 6 months.