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Home My WebLink About06.15.26 CITY OF ST. JOSEPH www.stjosephmn.gov “A safe and welcoming community valuing open communication and civic trust while maintaining the enduring spirit of small-town life.” 75 Callaway Street East | Saint Joseph, Minnesota 56374 Email: cityoffices@stjosephmn.gov | Phone: 320.363.7201 | Fax 320.363.0342 St. Joseph City Council June 15, 2026 6:00 PM Join Zoom Meeting https://us06web.zoom.us/j/85934223635?pwd=RMIMCTMUqxytpabmBOo1mPCNn1zvdh.1 Meeting ID: 859 3422 3635 Passcode: 638989 1. 6:00 PM Call to order - Pledge of Allegiance 2. Public Comments Up to 3 speakers will be allowed for up to 3 minutes each to address the council with questions/concerns/comments (regarding an item NOT on the agenda). No Council response or action will be given/taken other than possible referral to Administration. 3. Approve Agenda 4. Consent Agenda a. Minutes – Requested Action: Approve the minutes of May 4, 2026. b. Bills Payable – Requested Action: Approve Check Numbers 63649-63661, Payroll & Account Payable EFT #4088-4100; ACH Accounts Payable #2401182 - #2401219; Regular Pay Period 12. c. Donations – Requested Action: Approve Resolution 2026-033 accepting donations. d. Financial Reports – Requested Action: Approve the May 2026 Financial Reports as presented. e. Cherrico Pottery Home Occupation License Amendment – Requested action: Approve Resolution 2026-034 Adopting Findings of Fact and Approving an Amendment to a Special Home Occupation License for an Art Studio. f. Bayou Alley Flats CIC Plat, and Declaration – Requested Action: Approve Resolution 2026-032 Approving a Common Interest Community Plat for Bayou Alley Flats and Declaration. g. Bayou Alley Flats TIF Amendment – Requested Action: Approve the First Amendment to Amended and Restated Development Agreement for Bayou Alley Flats, LLC. h. Revolving Loan Fund – The Good Food Good People Group – Requested Action: Approve the Agreement for Loan of the St. Joseph Revolving Loan Fund with The Good Food Good People Group. i. Appointment of Joint Planning Board Member – Requested Action: Approve the appointment of Craig Hern to the Joint Planning Board. j. Joint Powers Agreement for Legal Services – Requested Action: Approve the Joint Powers Agreement for Legal Services with the City of St. Cloud, effective January 1, 2027. k. 2025 TIF Reports – Requested Action: Approve the 2025 TIF Reports as presented. l. 1st Quarter 2026 Gambling Reports – Requested Action: Accept the 1st quarter 2026 gambling reports. m. Permit Appeal and Parking Waiver, La Playette – Requested Action: Approve the permit appeal and parking waiver as presented. 5. PUD Amendment and Variance Request – Country Manor 6. Public Hearing - Data Center Moratorium 7. Public Hearing - Multi-Family Moratorium 8. Department Reports 9. Mayor and Council Reports/Updates 10. Adjourn June 1, 2026 Page 1 of 1 Pursuant to due call and notice thereof, the City Council for the City of St. Joseph met in regular session on Monday, June 1, 2026, at 6:00PM in the St. Joseph Government Center. Members Present: Mayor Adam Scepaniak, Councilmembers Andrew Mooney, Kelly Beniek, Adam Schnettler, Kevin Kluesner City Representatives Present: City Administrator David Murphy, Finance Director Lori Bartlett, Police Chief Dwight Pfannenstein, City Engineer Randy Sabart, Community Development Director Nate Keller, City Clerk Kayla Klein Public Comments: None Approve Agenda: Kluesner moved to approve the agenda; seconded by Beniek and passed unanimously. Consent Agenda: Kluesner moved to approve the consent agenda, pulling item 4d. Performance Measures Survey Results; seconded by Beniek and passed unanimously. a. Minutes – Requested Action: Approve the minutes of May 18, 2026. b. Bills Payable – Requested Action: Approve Check Numbers 63634-63648, Payroll & Account Payable EFT #4076-4087; ACH Accounts Payable #2401135 - #2401181; Regular Pay Period 11. c. Special Event Permit, Make A Difference 5K/1K – Requested Action: Approve the Make A Difference 5K/1K on September 12th at Klinefelter Park. d. Performance Measures Survey Results – Requested Action: Accept the results of the May 2026 Performance Measures Survey. e. 2026-2027 Intoxicating Liquor License Renewals – Requested Action: Approve the 2026-2027 intoxicating liquor licenses as presented. Performance Measures Survey Results: Kluesner suggested the comments from the survey be discussed either at the upcoming visioning session or at a work session. Murphy suggested the council discuss at an upcoming work session. Kluesner moved to approve item 4d. Performance Measures Survey Results; seconded by Mooney and passed unanimously. BKV Group – Public Safety Campus Proposal: Chief Pfannenstein gave an over of the request for a space needs study for the future Police/Fire station. BKV group came on site and gave and observed the site in person. The purpose of the study would be getting an idea of whether the police and fire departments should be in separate building or one that is combined, where the building will go, and if the location of the current fuel tanks is appropriate for future needs. The proposal is $13,950 for Public Safety Planning & Programming Study and an optional $9,000 Fire Department Facility Condition Assessment Study. Kluesner made a motion approving the BKV Group Public Safety Master Planning & Programming Study for $13,950 and the additional Fire Department Facility Condition Assessment Study for $9,000. The motion was seconded by Beniek and passed unanimously. Department Reports: Keller reported that the intern will be starting tomorrow and will be working Tuesdays and Thursdays in the office until late August. Murphy requested that any councilmembers wanting to go to the LMC annual conference that they let him know by tomorrow so he can get them registered. Mayor and Council Reports/Updates: Beniek stated she will be going to Paynesville to look at different housing types and whether they would fit in St. Joseph. Kluesner stated that the Emerald Ash Borer Seminar will be at city hall on Wednesday at 6PM. Adjourn: The meeting was adjourned at 6:23PM. Kayla Klein City Clerk STAFF MEMO Prepared by: Debbie Kulzer, Finance Tech Meeting Date: 6/15/26 ☒ Consent Agenda Item ☐ Regular Agenda Item Agenda Item # 4b Reviewed by: Item: Bills Payable Council Priority: ☐ Dispensary ☐ Industrial Park Expansion ☐ Housing ☐ Public Safety Facility/Safe Crossing of CSAH 75 ☐ N/A ACTION REQUESTED Approve the bills payable as presented. BOARD/COMMISSION/COMMITTEE RECOMMENDATION None PREVIOUS COUNCIL ACTION See below REFERENCE AND BACKGROUND The council approved staff to make the following payments through the payroll contracts, regular monthly invoices with due dates prior to the next scheduled council meeting, or actions taken at previous council meetings. The information here is to provide you with all checks and electronic payments made for verification of the disbursement completeness. BUDGET IMPACT Bills Payable – Checks Mailed Prior to Council Approval Regular Payroll 12 $102,165.71 Payroll & Accounts Payable EFT #4088 - #4100 $129,590.85 ACH Accounts Payable #2401182 - #2401219 $509,297.27 Check Numbers #63649 - #63661 $89,220.73 Total $830,274.56 Bills Payable – Checks Awaiting Council Approval Check Numbers - None at this time $0.00 Total $0.00 Total Budget/Fiscal Impact: $830,274.56 Various Funds STAFF RECOMMENDED ACTION Approve the bills payable as presented. SUPPORTING DATA/ATTACHMENTS Bill listing by EFT, paid prior to council approval and awaiting to be paid upon council approval. STAFF MEMO Prepared by: Lori Bartlett, Finance Director Meeting Date: 6-15-26 ☒ Consent Agenda Item ☐ Regular Agenda Item Agenda Item # 4c Reviewed by: Item: Donations and Contributions Council Priority: ☐ Dispensary ☐ Industrial Park Expansion ☐ Housing ☐ Public Safety Facility/Safe Crossing of CSAH 75 ☒ N/A ACTION REQUESTED Consider approval Resolution 2026-033 accepting donations as presented. BOARD/COMMISSION/COMMITTEE RECOMMENDATION none PREVIOUS COUNCIL ACTION none REFERENCE AND BACKGROUND Minnesota Statute 465.03 requires that all gifts and donations of real or personal property be accepted only with the adoption of a resolution approved by two-thirds of the members of the City Council. By accepting the donations, the city is accepting the intent of the donations. The in-kind donations are estimates. Total Dog Park cash donations received through 5/31/26 = $7,239 + $1,149 for pavers and refreshments. BUDGET IMPACT $283.00 STAFF RECOMMENDED ACTION Accept the donations as presented in Resolution 2026-033. SUPPORTING DATA/ATTACHMENTS Resolution 2026-033 Accepting Donations RESOLUTION 2026-028 RESOLUTION ACCEPTED DONATION(S) WHEREAS, The City of St. Joseph is generally authorized to accepts gifts and bequests pursuant to Minnesota Statutes Section 465.03 and Minnesota Statutes Section 471.17 for the benefit of its citizens; and WHEREAS, said Minnesota Statute 465.03 requires that all gifts and donations of real or personal property be accepted only with the adoption of a resolution approved by two-thirds of the members of the City Council; and WHEREAS, the following person/persons and/or entity/entities has/have donated real and/or personal property as follows: DONOR METHOD PURPOSE AMOUNT Anonymous Cash Archery Range $10.00 Anonymous Cash Disc Golf $37.00 Anonymous Cash RV Dump Station $236.00 WHEREAS, all such donations have been contributed to assist the various city departments and programs as allowed by law; and WHEREAS, the City Council finds that it is appropriate to accept the donations offered. NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF ST. JOSEPH, MINNESOTA, AS FOLLOWS: 1. The donations described above are accepted. 2. The Finance Department is hereby directed to issue receipts to each donor acknowledging the city’s receipt of the donors’ donations. ADOPTED by the City Council this 15th day of June, 2026. CITY OF ST. JOSEPH Adam Scepaniak, Mayor ATTEST David Murphy, City Administrator STAFF MEMO Prepared by: Lori Bartlett Meeting Date: 6-15-2026 ☒ Consent Agenda Item ☐ Regular Agenda Item Agenda Item # 4d Reviewed by: Item: May Treasurer’s Report Council Priority: ☐ Dispensary ☐ Industrial Park Expansion ☐ Housing ☐ Public Safety Facility/Safe Crossing of CSAH 75 ☒ N/A ACTION REQUESTED Consider acceptance of the treasurer’s reports through May 2026. BOARD/COMMISSION/COMMITTEE RECOMMENDATION none PREVIOUS COUNCIL ACTION Adopted 2026 budget on December 1, 2025. REFERENCE AND BACKGROUND Cash/investment presented as May 31, 2026. Budget to actual reports attached for Council review. The cash and investment balance decreased $2,929,196 from the beginning of the year. The first half of the year typically reflects a drawdown of cash balances, as property tax settlements and state aid payments are not received until mid-year. There was a one-time cash disbursement in the amount of $762,300 to pay the YMCA for the donations received on the community center project. In addition, the portion of donations received directly at Sentry Bank were returned by the city. The city defeased the 2019A industrial park bonds with a disbursement of $940,698 into an escrow account. Other drawdowns are operational in nature. Investment earnings average 3.68% interest rate with an average maturity of 25 months. Interest in earnings for May equaled $38,506 on an ending cash balance of $24,010,850. The change in market value decreased $25,688. Recorded interest earnings as of May 31st total $123,045. The FOMC Board kept the federal rates unchanged in April with the uncertainties of the Iran war, among other issues. Their next meeting with the new Board Chair is June 16-17. Markets are predicting no changes in interest rates. However, there is a new pressure to raise interest rates this fall due to inflation pressures and AI- induced boom overheating the economy. The General Fund spent 39% of the expenditure budget and received 8% of the revenue budget at the end of May. While revenues and expenditures are operational in nature, there are a couple of items to point out. Revenues: Development fees picked up with the second Joetown Apts and Monastery permits. There also have been four new home permits issued. Room and shelter fees are near budget as summer and holidays are nearly booked. There is a $57k in insurance recovery. This is for the squad 709 accident. The city returned a $50k bond held for a forfeited vehicle. The bond was returned following the end of the court case. The Rec Dept admission fees are over budget. The revenues are offset with operating costs to run the activities. The surplus property of $7,481 was mainly for a trade in value for the old truck #50. Other items sold include old laptops, copier, tires. Operational Expenditures: Finance professional services shows over budget. The city is required to do an actuarial study for the audit of post-employment benefits. There is a $3,100 cost every other year for this study. The capital budget sets funds aside annually to cover this cost. Audit services are billed intermittently until the audit is completed. The final payment will be in June. IT services show over-spent. The expenditure is allocated at year-end with the audit entries. The IT budget is allocated in the reports. Police H SA contribution is well over budget. The 2026 LELS contract allows employees with over 600 ESST hours to contribute the hours to an HCSP account. There were two employees who contributed hours. There is a severance payment recorded. This is for paid time off leave paid to an employee who resigned. Lobbyist for 2026 Legislative session paid in full. Capital Expenditures: Pickup #50 has been replaced per the replacement schedule. Squad 709 upfitting Axon in-squad cameras Pressure washer and mechanical tools Enterprise funds spent 32% (less depreciation) and received 29% of the revenue budget. The revenue for usage fees represents Jan through April usage. The water operating supplies are mainly for water meters to complete the cellular meter conversion. There was a water main break at 7th and Baker St. Most of the repair costs were paid by May 31st. A sewer pump was replaced in the Baker St lift station. An electrical switch was added to the Northland lift station. Compost permits were on sale beginning in March. The city sold 493 permits. The city reimburses a portion of the permit sales to C&L Excavating monthly. The Klinefelter storm ponds were treated this spring. The expense is part of the 5-year stormwater management plan in the capital budget. BUDGET IMPACT Information only STAFF RECOMMENDED ACTION Accept the treasurer’s reports through May 2026. SUPPORTING DATA/ATTACHMENTS Financial Statements – Cash Allocation Financial Statements – General Fund Financial Statements - Enterprise Funds CITY OF ST JOSEPH COMBINED CASH INVESTMENT MAY 31, 2026 COMBINED CASH ACCOUNTS 001-10100GENERAL CHECKING24,010,850.26 TOTAL COMBINED CASH24,010,850.26 001-10199CASH ALLOCATED TO OTHER FUNDS( 24,010,850.26) TOTAL UNALLOCATED CASH.00 CASH ALLOCATION RECONCILIATION 101ALLOCATION TO GENERAL FUND1,279,568.63 102ALLOCATION TO EMPLOYEE RETIREMENT RESERVE388,313.75 106ALLOCATION TO PUBLIC SAFETY AID75,009.00 108ALLOCATION TO CABLE PEG ACCESS FEE11,254.66 109ALLOCATION TO GENERAL CAPITAL OUTLAY486,426.51 110ALLOCATION TO DEBT SERVICE RELIEF915,128.54 200ALLOCATION TO ST CLOUD AREA LOCAL SALES TAX1,560,833.49 205ALLOCATION TO PARK DEDICATION FEES538,876.14 210ALLOCATION TO FIRE DEPARTMENT611,443.43 215ALLOCATION TO CHARITABLE GAMBLING294.10 220ALLOCATION TO CVB39,168.57 225ALLOCATION TO DEED CDAP HOUSING GRANTS61,376.58 250ALLOCATION TO EDA69,681.04 251ALLOCATION TO REVOLVING LOAN FUND689,043.37 253ALLOCATION TO TIF 4-1 FORTITUDE SENIOR APTS45,513.36 257ALLOCATION TO TIF 2-1 MILLSTREAM SHOPS LOFTS51,762.44 259ALLOCATION TO TIF 2-3 BAYOU BLUES ALLEY FLAT2,369.92 301ALLOCATION TO 2016 CIP BONDS \[GOVT CENTER\]24,228.57 302ALLOCATION TO 2022A GO ABATE BONDS\[COMMCTR1\]1,626,726.64 304ALLOCATION TO 2016 IMP BONDS \[FIELD ST\]160,141.94 307ALLOCATION TO 2019A IMP BONDS \[OVERLAYS\]146,495.55 308ALLOCATION TO 2019A IMP BONDS \[IND PARK\]349,343.61 310ALLOCATION TO 2020B IMP BONDS \[20TH AVE SE\]354,852.83 311ALLOCATION TO 2021 IMP BOND \[MN ST/OVERLAYS\]541,781.75 312ALLOCATION TO 2020B CIP BONDS \[SHOP 3\]4,067.61 314ALLOCATION TO 2020C CO REFUND \['14 PARK TER\]3,683.23 315ALLOCATION TO 2022 IMP BONDS \[OVERLAYS\]32,163.80 316ALLOCATION TO 2022A EQUIP CERT \[FD TRUCK\]25,088.66 317ALLOCATION TO 2023A IMP \[OVERLAY/ELM ST ROW\]111,584.49 318ALLOCATION TO 2023A EQUIP CERT \[GEN EQ\]18,879.02 319ALLOCATION TO 2024A GO IMP BONDS \[ST IMP\]532,980.78 320ALLOCATION TO 2025A GO IMP BONDS \[ST IMP\]162,950.65 321ALLOCATION TO 2025A EQUIP CERT \[GEN EQ\]1,957.81 322ALLOCATION TO FUND 322( 2.08) 402ALLOCATION TO COMMUNITY CENTER/YMCA PHASE I5,511,139.26 420ALLOCATION TO FUND 420438,760.17 421ALLOCATION TO 2025 EQUIP CERTIFICATES244,747.36 422ALLOCATION TO FUND 422( 178,563.72) 501ALLOCATION TO WAC/WATER TRUNK FEES608,341.14 502ALLOCATION TO SAC/SEWER TRUNK FEES367,895.01 601ALLOCATION TO WATER FUND1,081,047.13 602ALLOCATION TO SEWER FUND3,757,164.55 603ALLOCATION TO REFUSE/RECYCLING/COMPOST288,321.47 FOR ADMINISTRATION USE ONLY41 % OF THE FISCAL YEAR HAS ELAPSED06/11/2026 12:30PM PAGE: 1 CITY OF ST JOSEPH COMBINED CASH INVESTMENT MAY 31, 2026 651ALLOCATION TO STORM WATER UTILITY814,282.75 652ALLOCATION TO STREET LIGHT UTILITY154,726.75 TOTAL ALLOCATIONS TO OTHER FUNDS24,010,850.26 ALLOCATION FROM COMBINED CASH FUND - 001-10199( 24,010,850.26) ZERO PROOF IF ALLOCATIONS BALANCE.00 FOR ADMINISTRATION USE ONLY41 % OF THE FISCAL YEAR HAS ELAPSED06/11/2026 12:30PM PAGE: 2 City ofSt. Joseph General Fund Balance Sheet Summary AsofMay 31, 2026 Account NumberAccount Name5/31/2026 Assets 101-10199Cash$ 1,303,597.93 102-10199Cash 388,313.75 106-10199Cash 75,009.00 108-10199Cash 11,254.66 109-10199Cash 486,426.51 110-10199Cash 915,128.54 101-10200Petty Cash 200.00 101-10450Interest Receivable - 101-10500Accounts Receivable 9,900.00 108-10500Accounts Receivable - 101-10520State MSAS Receivable - 109-10500Accounts Receivable - 109-10550Due From other Gov tUnits - 102-10550DFOGU - 101-10550Due From Other Gov Units - 110-10550Due From other Gov tUnits - 110-10600Prepaids - 101-10600Prepaid Items - 110-10700Taxes Receivable - Delinquent - 101-10700Taxes Receivable - Delinquent - 101-11800Lease Receivable - 110-12100Special Assessments Receivable - 101-12100Special Assessments Receivable - 110-12150Delinquent Special Assmt - 110-15500Due From Other Fund - 101-15500Due From Other Fund - Total Assets$ 3,189,830.39 Liabilities 101-20200Accounts Payable 2,574.49 102-20200Accounts Payables - 106-20200Accounts Payable - 104-20200ARPA Accounts Payable - 108-20200Accounts Payable - 109-20200Accounts Payable - 110-20200Accounts Payable - 101-20201Salaries Payable - 109-20202Due to Other Govt Units - 101-20202Due to Other Govt Units - 110-20400Contracts Payables - 110-20402Retainage Payable - 101-21701Federal Withholding - 101-21702State Withholding - 101-21703FICA Tax Withholding 5,798.59 101-21704PERA (0.07) 101-21705Deferred Comp 250.00 101-21706Medical/Dental Insurance (4,159.65) 101-21707Federation Dues 65.32 101-21708MN Paid Leave 1,377.39 101-21709Vision Insurance 265.75 101-21711Life Insurance 59.85 101-21712Fire Dept Lunch Liability - 101-21713Disability Insurance 3,847.76 101-21714Child Support - 101-21715Flex- Medical/H SA (1,466.70) 101-21716Flex- Dependent Care Reimb (6,249.92) 101-22200Unearned Revenue - 110-22204Deferred Inflow of Resources - 101-22204Deferred Inflow of Resources - 101-22600Deposit Payable - Total Liabilities 2,362.81 Fund Equity Funds 101-110Revenue Under Expenditures YTD 1,811,091.41 101-24410Design. FdBal - Working Cap - 101-24411Design. Fd Bal - Elections - 101-24413Design. Fd Bal - Capital - 110-24413Design. Fd Bal - Capital - 110-24414Design. Fd Bal -Debt Serv.Rel. - 101-24500Restricted Equity - 109-24413Design. Fd Bal - Capital - 109-25310Unassigned Fund Balance (662,759.47) 110-24500Restricted Net Position - 101-25310Unassigned Fund Balance (2,835,677.92) 102-25310Unassigned Fund Balance (415,939.77) 106-25310Unassigned Fund Balance (75,009.00) 108-25310Unassigned Fund Balance (10,178.26) 110-25310Unassigned Fund Balance (1,003,720.19) Total Equity (3,192,193.20) Total Liabilities plus Equity$ (3,189,830.39) CITY OF ST JOSEPH REVENUES WITH COMPARISON TO BUDGET FOR THE 5 MONTHS ENDING MAY 31, 2026 GENERAL FUND PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETCURRENT BUDGETUNEARNEDPCNT GENERAL FUND REVENUE 101-41430-31010CURRENT AD VALOREM TAXES.00.003,044,958.003,044,958.003,044,958.00.0 101-41430-31320STATE SALES TAX.002.80.00.00( 2.80).0 101-41430-34102ZONING VIOLATION.00.00250.00250.00250.00.0 101-41430-34103ZONING AND SUBDIVISION FEE6,555.0013,247.0015,750.0015,750.002,503.0084.1 101-41430-34104LAND USE DEPOSIT FEE6,000.005,227.80.00.00( 5,227.80).0 101-41430-34105SALE OF MAPS AND PUBLICATIONS114.001.50100.00100.0098.501.5 101-41430-34107ASSESSMENTS SEARCH1,975.002,065.005,000.005,000.002,935.0041.3 101-41430-34111SPECIAL HEARING.00.00150.00150.00150.00.0 101-41430-34221WATER TOWER ANTENNA LEASE1,068.241,100.262,650.002,650.001,549.7441.5 101-41430-34404INTEREST CHARGES.0030.00.00.00( 30.00).0 101-41430-34780SHELTER/ROOM RENTAL FEES400.001,200.001,500.001,500.00300.0080.0 101-41430-34782ROOM RENTAL DAMAGE DEPOSIT.00400.00.00.00( 400.00).0 101-42120-34800ACCIDENT REPORT FEE1,402.501,388.753,500.003,500.002,111.2539.7 101-42120-34950KENNEL FEES.00.00225.00225.00225.00.0 101-42120-34955POLICE INVESTIGATION CHARGES.00.00525.00525.00525.00.0 101-42120-35101COUNTY FINES14,192.609,695.4638,000.0038,000.0028,304.5425.5 101-42120-35102POLICY FINES16,110.4015,758.0030,000.0030,000.0014,242.0052.5 101-42120-35106SEIZED PROPERTY234.75.002,500.002,500.002,500.00.0 101-42120-35107BOND-FORFEITED CARS.00( 50,364.00).00.0050,364.00.0 101-42120-35108POLICE CASE RECOVERY.004.55.00.00( 4.55).0 101-43120-32000REFUSE PERMITS10,600.0012,000.0010,600.0010,600.00( 1,400.00)113.2 101-43120-34407SNOW REMOVAL.00.00525.00525.00525.00.0 101-45125-34783SCHNEIDER FIELD RENTAL.00.003,000.003,000.003,000.00.0 101-45125-36230DONATIONS - SCHNEIDER FIELD.00.001,000.001,000.001,000.00.0 101-45202-34407WEED CUTTING.00.00315.00315.00315.00.0 101-45202-34780SHELTER/ROOM RENTAL FEES21,350.0020,400.0028,000.0028,000.007,600.0072.9 101-45202-34782PARK RENTAL DAMAGE DEPOSIT13,340.0013,800.00.00.00( 13,800.00).0 101-45204-34405CONCESSIONS10.00.00525.00525.00525.00.0 101-45204-34408ADMISSION FEE6,135.009,170.007,350.007,350.00( 1,820.00)124.8 101-45204-34410BIKE SHARE PROGRAM27.28.00.00.00.00.0 101-45204-36230DONATIONS - RECREATION250.00.00525.00525.00525.00.0 101-49302-39201TRANSFERS FROM OTHER FUNDS.0024,710.95.00.00( 24,710.95).0 101-49302-39305INSURANCE RECOVERY.0057,278.05.00.00( 57,278.05).0 102-49302-39201TRANSFERS FROM OTHER FUNDS11,205.009,440.009,440.009,440.00.00100.0 108-41950-31810FRANCHISE FEES - PEG1,256.281,076.404,390.004,390.003,313.6024.5 FOR ADMINISTRATION USE ONLY41 % OF THE FISCAL YEAR HAS ELAPSED06/09/2026 11:18AM PAGE: 1 CITY OF ST JOSEPH REVENUES WITH COMPARISON TO BUDGET FOR THE 5 MONTHS ENDING MAY 31, 2026 GENERAL CAPITAL OUTLAY PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETCURRENT BUDGETUNEARNEDPCNT 109-41430-31010CURRENT AD VALOREM TAXES.00.00164,600.00164,600.00164,600.00.0 109-49302-39201TRANSFERS FROM OTHER FUNDS4,000.00.00.00.00.00.0 109-49302-39260SURPLUS PROPERTY5,766.907,481.005,000.005,000.00( 2,481.00)149.6 110-41430-33401LOCAL GOVERNMENT AID.00.0075,000.0075,000.0075,000.00.0 110-43120-31010CURRENT AD VALOREM TAXES277.55.00500.00500.00500.00.0 110-43120-36100SPECIAL ASSESSMENTS.00.006,000.006,000.006,000.00.0 TOTAL GENERAL FUND REVENUE122,270.50155,113.523,461,878.003,461,878.003,306,764.484.5 FOR ADMINISTRATION USE ONLY41 % OF THE FISCAL YEAR HAS ELAPSED06/09/2026 11:18AM PAGE: 2 CITY OF ST JOSEPH EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 5 MONTHS ENDING MAY 31, 2026 GENERAL FUND PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT GENERAL FUND EXPENDITURES 101-41110-101COUNCIL SALARIES8,700.008,700.0020,880.0020,880.0012,180.0041.7 101-41110-104TAXABLE PER DIEM800.00350.002,800.002,800.002,450.0012.5 101-41110-120MN PAID LEAVE.0043.86140.00140.0096.1431.3 101-41110-121PERA CONTRIBUTIONS232.50174.00590.00590.00416.0029.5 101-41110-122FICA CONTRIBUTIONS438.48343.50735.00735.00391.5046.7 101-41110-125MEDICARE CONTRIBUTIONS.00.00345.00345.00345.00.0 101-41110-151WORKERS COMP. INSUR. PREM..00.0035.0035.0035.00.0 101-41110-171CLOTHING ALLOWANCE.00.00200.00200.00200.00.0 101-41110-200OFFICE SUPPLIES64.58821.45105.00105.00( 716.45)782.3 101-41110-331TRAVEL & CONFERENCE EXPENSE3,441.841,814.168,400.008,400.006,585.8421.6 101-41110-361GENERAL LIABILITY INSURANCE512.00544.00520.00520.00( 24.00)104.6 101-41110-433DUES & MEMBERSHIPS29,844.0027,921.0034,050.0034,050.006,129.0082.0 101-41120-103LEGISLATIVE BODIES1,080.001,040.005,640.005,640.004,600.0018.4 101-41120-151WORKERS COMP. INSUR. PREM..00.00320.00320.00320.00.0 101-41120-200OFFICE SUPPLIES.00.0075.0075.0075.00.0 101-41120-340ADVERTISING.00.0050.0050.0050.00.0 101-41130-304LEGAL FEES270.00137.501,000.001,000.00862.5013.8 101-41130-340ADVERTISING262.20.00750.00750.00750.00.0 101-41310-101MAYOR SALARIES3,250.003,250.007,800.007,800.004,550.0041.7 101-41310-104TAXABLE PER DIEM150.00.001,000.001,000.001,000.00.0 101-41310-120MN PAID LEAVE.0015.5650.0050.0034.4431.1 101-41310-121PERA CONTRIBUTIONS170.00130.00440.00440.00310.0029.6 101-41310-122FICA CONTRIBUTIONS49.3237.72.00.00( 37.72).0 101-41310-125MEDICARE CONTRIBUTIONS.00.00125.00125.00125.00.0 101-41310-151WORKERS COMP. INSUR. PREM..00.0010.0010.0010.00.0 101-41310-171CLOTHING ALLOWANCE.00.0050.0050.0050.00.0 101-41310-200OFFICE SUPPLIES45.00.0050.0050.0050.00.0 101-41310-331TRAVEL & CONFERENCE EXPENSE191.4385.003,000.003,000.002,915.002.8 101-41310-361GENERAL LIABILITY INSURANCE128.00136.00130.00130.00( 6.00)104.6 FOR ADMINISTRATION USE ONLY41 % OF THE FISCAL YEAR HAS ELAPSED06/09/2026 11:18AM PAGE: 3 CITY OF ST JOSEPH EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 5 MONTHS ENDING MAY 31, 2026 GENERAL FUND PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT 101-41410-101ELECTION SALARIES.00.0012,320.0012,320.0012,320.00.0 101-41410-120MN PAID LEAVE.00.0055.0055.0055.00.0 101-41410-210OPERATING SUPPLIES.00.00300.00300.00300.00.0 101-41410-331TRAVEL & CONFERENCE130.21.00700.00700.00700.00.0 101-41410-340ADVERTISING.00.00350.00350.00350.00.0 101-41410-410RENTALS.00600.006,000.006,000.005,400.0010.0 101-41410-580OTHER EQUIPMENT.00.00500.00500.00500.00.0 101-41430-101ADMINISTRATIVE SALARIES121,403.97123,812.59336,555.00336,555.00212,742.4136.8 101-41430-120MN PAID LEAVE.00725.951,885.001,885.001,159.0538.5 101-41430-121PERA CONTRIBUTIONS8,986.528,240.3224,925.0024,925.0016,684.6833.1 101-41430-122FICA CONTRIBUTIONS8,720.717,914.5419,470.0019,470.0011,555.4640.7 101-41430-123DEFERRED COMP-EMPLOYER550.00500.002,600.002,600.002,100.0019.2 101-41430-125MEDICARE CONTRIBUTIONS( 24.66).002,580.002,580.002,580.00.0 101-41430-130H S A- EMPLOYER CONTRIBUTION3,780.002,687.504,800.004,800.002,112.5056.0 101-41430-131HEALTH INSURANCE22,835.7017,816.2960,600.0060,600.0042,783.7129.4 101-41430-132DENTAL INSURANCE1,542.741,327.772,980.002,980.001,652.2344.6 101-41430-133LIFE INSURANCE91.4583.80245.00245.00161.2034.2 101-41430-134DISABILTY INSURANCE1,003.45769.883,250.003,250.002,480.1223.7 101-41430-151WORKERS COMP. INSUR. PREM..00.00790.00790.00790.00.0 101-41430-171CLOTHING ALLOWANCE.00.00150.00150.00150.00.0 101-41430-200OFFICE SUPPLIES452.42280.962,000.002,000.001,719.0414.1 101-41430-201POSTAGE1,798.811,400.995,500.005,500.004,099.0125.5 101-41430-205MOTOR FUEL.00262.95250.00250.00( 12.95)105.2 101-41430-210OPERATING SUPPLIES1,347.92740.453,150.003,150.002,409.5523.5 101-41430-220REPAIR AND MAINTENANCE132.31.00210.00210.00210.00.0 101-41430-230VEHICLE R&M.00909.361,000.001,000.0090.6490.9 101-41430-300PROFESSIONAL SERVICES2,299.762,715.903,500.003,500.00784.1077.6 101-41430-310SOFTWARE SUPPORT3,905.804,177.4310,920.0010,920.006,742.5738.3 FOR ADMINISTRATION USE ONLY41 % OF THE FISCAL YEAR HAS ELAPSED06/09/2026 11:18AM PAGE: 4 CITY OF ST JOSEPH EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 5 MONTHS ENDING MAY 31, 2026 GENERAL FUND PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT 101-41530-101FINANCE SALARIES81,945.4186,920.87228,595.00228,595.00141,674.1338.0 101-41530-120MN PAID LEAVE.00519.021,270.001,270.00750.9840.9 101-41530-121PERA CONTRIBUTIONS6,029.505,760.5916,640.0016,640.0010,879.4134.6 101-41530-122FICA CONTRIBUTIONS5,817.145,472.5513,140.0013,140.007,667.4541.7 101-41530-123DEFERRED COMP-EMPLOYER825.00750.001,950.001,950.001,200.0038.5 101-41530-125MEDICARE CONTRIBUTIONS.00.003,075.003,075.003,075.00.0 101-41530-130H S A- EMPLOYER CONTRIBUTION2,400.002,500.004,800.004,800.002,300.0052.1 101-41530-131HEALTH INSURANCE14,668.5014,042.2943,200.0043,200.0029,157.7132.5 101-41530-132DENTAL INSURANCE810.50729.452,980.002,980.002,250.5524.5 101-41530-133LIFE INSURANCE66.5053.20165.00165.00111.8032.2 101-41530-134DISABILTY INSURANCE718.65517.452,185.002,185.001,667.5523.7 101-41530-151WORKERS COMP. INSUR. PREM..00.00535.00535.00535.00.0 101-41530-171CLOTHING ALLOWANCE.00.00100.00100.00100.00.0 101-41530-200OFFICE SUPPLIES92.88243.62525.00525.00281.3846.4 101-41530-300PROFESSIONAL SERVICES2,474.295,779.855,500.005,500.00( 279.85)105.1 101-41530-310SOFTWARE SUPPORT4,763.927,417.4519,280.0019,280.0011,862.5538.5 101-41530-321TELEPHONE325.60313.661,025.001,025.00711.3430.6 101-41530-331TRAVEL & CONFERENCE EXPENSE509.50109.453,000.003,000.002,890.553.7 101-41530-340ADVERTISING235.42.001,500.001,500.001,500.00.0 101-41530-433DUES & MEMBERSHIPS339.9980.00340.00340.00260.0023.5 101-41540-300AUDIT & ACCOUNTING SERVICES.0030,000.0040,350.0040,350.0010,350.0074.4 101-41550-300PROFESSIONAL SERVICES25,403.9025,357.6026,000.0026,000.00642.4097.5 101-41610-304LEGAL FEES5,489.753,468.0015,000.0015,000.0011,532.0023.1 101-41710-220REPAIR AND MAINTENANCE.00.00500.00500.00500.00.0 101-41710-310IT SERVICES9,523.5828,769.6018,000.0018,000.00( 10,769.60)159.8 FOR ADMINISTRATION USE ONLY41 % OF THE FISCAL YEAR HAS ELAPSED06/09/2026 11:18AM PAGE: 5 CITY OF ST JOSEPH EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 5 MONTHS ENDING MAY 31, 2026 GENERAL FUND PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT 101-41910-101PLANNING & ZONING SALARIES31,799.5133,445.3985,515.0085,515.0052,069.6139.1 101-41910-120MN PAID LEAVE.00196.40440.00440.00243.6044.6 101-41910-121PERA CONTRIBUTIONS2,384.922,262.516,415.006,415.004,152.4935.3 101-41910-122FICA CONTRIBUTIONS2,416.212,205.884,920.004,920.002,714.1244.8 101-41910-123DEFERRED COMP-EMPLOYER178.75325.00425.00425.00100.0076.5 101-41910-125MEDICARE CONTRIBUTIONS.00.001,150.001,150.001,150.00.0 101-41910-130H S A- EMPLOYER CONTRIBUTION780.00812.501,560.001,560.00747.5052.1 101-41910-131HEALTH INSURANCE4,528.904,572.7214,040.0014,040.009,467.2832.6 101-41910-132DENTAL INSURANCE298.60268.65970.00970.00701.3527.7 101-41910-133LIFE INSURANCE21.6017.2855.0055.0037.7231.4 101-41910-134DISABILTY INSURANCE251.90178.24830.00830.00651.7621.5 101-41910-151WORKERS COMP. INSUR. PREM..00.00200.00200.00200.00.0 101-41910-171CLOTHING ALLOWANCE.00.0030.0030.0030.00.0 101-41910-200OFFICE SUPPLIES25.3332.3775.0075.0042.6343.2 101-41910-201POSTAGE13.26.00200.00200.00200.00.0 101-41910-300PROFESSIONAL SERVICES196.37197.646,500.006,500.006,302.363.0 101-41910-303ENGINEERING FEE235.001,177.202,500.002,500.001,322.8047.1 101-41910-304LEGAL FEES1,350.00220.001,100.001,100.00880.0020.0 101-41910-310SOFTWARE SUPPORT.00.001,425.001,425.001,425.00.0 101-41910-321TELEPHONE165.56153.62520.00520.00366.3829.5 101-41910-331TRAVEL & CONFERENCE EXPENSE.0067.011,300.001,300.001,232.995.2 101-41910-340ADVERTISING274.56241.60600.00600.00358.4040.3 101-41910-431ANNEXATION/RECORDING FEE114.00220.12650.00650.00429.8833.9 101-41910-433DUES & MEMBERSHIPS667.00693.40880.00880.00186.6078.8 101-41910-451JOINT PLANNING.00.00250.00250.00250.00.0 FOR ADMINISTRATION USE ONLY41 % OF THE FISCAL YEAR HAS ELAPSED06/09/2026 11:18AM PAGE: 6 CITY OF ST JOSEPH EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 5 MONTHS ENDING MAY 31, 2026 GENERAL FUND PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT 101-41941-101GENERAL GOVERNMENT SALARIES6,673.3017,538.6023,900.0023,900.006,361.4073.4 101-41941-120MN PAID LEAVE.0097.28135.00135.0037.7272.1 101-41941-121PERA CONTRIBUTIONS495.441,310.221,775.001,775.00464.7873.8 101-41941-122FICA CONTRIBUTIONS475.771,156.491,415.001,415.00258.5181.7 101-41941-123DEFERRED COMP-EMPLOYER.00.0065.0065.0065.00.0 101-41941-125MEDICARE CONTRIBUTIONS.00.00330.00330.00330.00.0 101-41941-130H S A- EMPLOYER CONTRIBUTION293.13257.25600.00600.00342.7542.9 101-41941-131HEALTH INSURANCE1,571.801,746.785,190.005,190.003,443.2233.7 101-41941-132DENTAL INSURANCE92.00102.75300.00300.00197.2534.3 101-41941-133LIFE INSURANCE9.4516.1720.0020.003.8380.9 101-41941-134DISABILTY INSURANCE81.5066.19230.00230.00163.8128.8 101-41941-151WORKERS COMP. INSUR. PREM..00.00615.00615.00615.00.0 101-41941-171CLOTHING ALLOWANCE.0016.00.00.00( 16.00).0 101-41941-220REPAIR AND MAINTENANCE.00.00525.00525.00525.00.0 101-41941-361GENERAL LIABILITY INSURANCE2,132.717,049.712,230.002,230.00( 4,819.71)316.1 101-41942-210OPERATING SUPPLIES25.4782.362,625.002,625.002,542.643.1 101-41942-220REPAIR AND MAINTENANCE9.89613.845,000.005,000.004,386.1612.3 101-41942-300PROFESSIONAL SERVICES10,861.7012,869.3446,925.0046,925.0034,055.6627.4 101-41942-361GENERAL LIABILITY INSURANCE6,215.451,431.386,555.006,555.005,123.6221.8 101-41942-381ELECTRIC UTILITIES6,442.327,288.3620,485.0020,485.0013,196.6435.6 101-41942-383GAS UTILITIES4,822.254,785.418,575.008,575.003,789.5955.8 101-41942-410RENTALS399.50399.50525.00525.00125.5076.1 101-41942-437REAL ESTATE TAXES.0019,076.0018,000.0018,000.00( 1,076.00)106.0 101-41950-101CABLE SALARIES990.15900.004,995.004,995.004,095.0018.0 101-41950-120MN PAID LEAVE.005.4025.0025.0019.6021.6 101-41950-122FICA CONTRIBUTIONS75.7568.84310.00310.00241.1622.2 101-41950-125MEDICARE CONTRIBUTIONS.00.0050.0050.0050.00.0 101-41950-151WORKERS COMP. INSUR. PREM..00.0010.0010.0010.00.0 101-41950-210OPERATING SUPPLIES.00.00210.00210.00210.00.0 101-41950-220REPAIR AND MAINTENANCE.00427.00500.00500.0073.0085.4 101-41950-300PROFESSIONAL SERVICES63.9663.96200.00200.00136.0432.0 101-41950-310SOFTWARE SUPPORT.00.00625.00625.00625.00.0 FOR ADMINISTRATION USE ONLY41 % OF THE FISCAL YEAR HAS ELAPSED06/09/2026 11:18AM PAGE: 7 CITY OF ST JOSEPH EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 5 MONTHS ENDING MAY 31, 2026 GENERAL FUND PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT 101-42120-101POLICE SALARIES498,333.85531,022.111,610,210.001,610,210.001,079,187.8933.0 101-42120-120MN PAID LEAVE.003,155.179,195.009,195.006,039.8334.3 101-42120-121PERA CONTRIBUTIONS78,918.8674,899.60264,390.00264,390.00189,490.4028.3 101-42120-122FICA CONTRIBUTIONS11,812.7511,652.0011,490.0011,490.00( 162.00)101.4 101-42120-123DEFERRED COMP-EMPLOYER1,141.292,640.4411,510.0011,510.008,869.5622.9 101-42120-125MEDICARE CONTRIBUTIONS.0018.8622,255.0022,255.0022,236.14.1 101-42120-130H S A- EMPLOYER CONTRIBUTION17,034.7850,426.4039,490.0039,490.00( 10,936.40)127.7 101-42120-131HEALTH INSURANCE91,212.70108,578.03323,280.00323,280.00214,701.9733.6 101-42120-132DENTAL INSURANCE3,829.503,871.1820,845.0020,845.0016,973.8218.6 101-42120-133LIFE INSURANCE444.04402.191,235.001,235.00832.8132.6 101-42120-134DISABILTY INSURANCE4,990.814,015.6614,875.0014,875.0010,859.3427.0 101-42120-151WORKERS COMP. INSUR. PREM..00.0058,935.0058,935.0058,935.00.0 101-42120-171CLOTHING ALLOWANCE912.222,168.1814,000.0014,000.0011,831.8215.5 101-42120-200OFFICE SUPPLIES.00157.38200.00200.0042.6278.7 101-42120-201POSTAGE163.88894.90750.00750.00( 144.90)119.3 101-42120-210OPERATING SUPPLIES2,889.082,839.566,300.006,300.003,460.4445.1 101-42120-211AWAIRE SUPPLIES42.50.00250.00250.00250.00.0 101-42120-214SMALL TOOL & MINOR EQUIPMENT.00.00150.00150.00150.00.0 101-42120-220REPAIR AND MAINTENANCE.0096.00200.00200.00104.0048.0 101-42120-300PROFESSIONAL SERVICES4,158.506,917.4619,950.0019,950.0013,032.5434.7 101-42120-304LEGAL FEES908.502,745.0050,925.0050,925.0048,180.005.4 101-42120-307COMMUNITY POLICING PROGRAMS.00.001,000.001,000.001,000.00.0 101-42120-310SOFTWARE SUPPORT11,783.405,411.0740,200.0040,200.0034,788.9313.5 101-42120-314SAFETY PROGRAM.00.001,015.001,015.001,015.00.0 101-42140-210OPERATING SUPPLIES.005,275.748,400.008,400.003,124.2662.8 101-42140-300PROFESSIONAL SERVICES5,810.187,048.147,350.007,350.00301.8695.9 101-42140-331TRAVEL & CONFERENCE EXPENSE1,560.00.005,250.005,250.005,250.00.0 101-42151-210OPERATING SUPPLIES260.00.00105.00105.00105.00.0 101-42151-220TELEPHONE/RADIO REPAIR/MAINT.00265.00250.00250.00( 15.00)106.0 101-42151-320COMMUNICATION SUPPORT1,182.00265.001,575.001,575.001,310.0016.8 101-42151-321TELEPHONE4,814.504,578.4315,355.0015,355.0010,776.5729.8 101-42152-205MOTOR FUEL8,295.938,757.4825,795.0025,795.0017,037.5234.0 101-42152-230VEHICLE REPAIR & MAINTENANCE3,635.822,149.2837,800.0037,800.0035,650.725.7 101-42152-446LICENSE.00.0075.0075.0075.00.0 101-42300-383GAS UTILITIES.00401.85.00.00( 401.85).0 FOR ADMINISTRATION USE ONLY41 % OF THE FISCAL YEAR HAS ELAPSED06/09/2026 11:18AM PAGE: 8 CITY OF ST JOSEPH EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 5 MONTHS ENDING MAY 31, 2026 GENERAL FUND PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT 101-42401-300PROFESSIONAL SERVICES38,000.0038,000.00102,025.00102,025.0064,025.0037.3 101-42401-310SOFTWARE SUPPORT708.36844.131,960.001,960.001,115.8743.1 101-42401-438STATE SURCHARGE501.00591.0010,000.0010,000.009,409.005.9 101-42500-220REPAIR AND MAINTENANCE.00.00525.00525.00525.00.0 101-42500-300PROFESSIONAL SERVICES900.001,890.001,575.001,575.00( 315.00)120.0 101-42500-326FIRE SIREN30.5939.2995.0095.0055.7141.4 101-42500-331TRAVEL & CONFERENCE EXPENSE.00.001,365.001,365.001,365.00.0 101-42500-433DUES & MEMBERSHIPS.00.00200.00200.00200.00.0 101-43120-101STREET SALARIES80,264.8176,218.32205,035.00205,035.00128,816.6837.2 101-43120-120MN PAID LEAVE.00445.191,190.001,190.00744.8137.4 101-43120-121PERA CONTRIBUTIONS5,890.425,627.9814,205.0014,205.008,577.0239.6 101-43120-122FICA CONTRIBUTIONS5,895.935,140.3212,305.0012,305.007,164.6841.8 101-43120-123DEFERRED COMP-EMPLOYER( 252.13)28.25325.00325.00296.758.7 101-43120-125MEDICARE CONTRIBUTIONS.00.002,875.002,875.002,875.00.0 101-43120-130H S A- EMPLOYER CONTRIBUTION3,412.654,190.737,415.007,415.003,224.2756.5 101-43120-131HEALTH INSURANCE17,380.7017,099.6241,100.0041,100.0024,000.3841.6 101-43120-132DENTAL INSURANCE1,005.70864.742,235.002,235.001,370.2638.7 101-43120-133LIFE INSURANCE80.7062.83165.00165.00102.1738.1 101-43120-134DISABILTY INSURANCE1,096.80766.771,855.001,855.001,088.2341.3 101-43120-151WORKERS COMP. INSUR. PREM..00.007,435.007,435.007,435.00.0 101-43120-171CLOTHING ALLOWANCE103.28183.801,740.001,740.001,556.2010.6 101-43120-200OFFICE SUPPLIES.00.00315.00315.00315.00.0 101-43120-201POSTAGE41.68.00210.00210.00210.00.0 101-43120-205MOTOR FUEL2,538.802,501.9610,185.0010,185.007,683.0424.6 101-43120-210OPERATING SUPPLIES2,457.885,206.9320,000.0020,000.0014,793.0726.0 101-43120-214SMALL TOOL & MINOR EQUIPMENT1,131.81.001,500.001,500.001,500.00.0 101-43120-220REPAIR AND MAINTENANCE150.0045.987,875.007,875.007,829.02.6 101-43120-230VEHICLE REPAIR & MAINTENANCE941.642,592.1410,500.0010,500.007,907.8624.7 101-43120-300PROFESSIONAL SERVICES1,500.0088.4510,500.0010,500.0010,411.55.8 101-43120-310SOFTWARE SUPPORT1,377.711,480.373,300.003,300.001,819.6344.9 101-43120-314SAFETY PROGRAM148.58299.151,435.001,435.001,135.8520.9 FOR ADMINISTRATION USE ONLY41 % OF THE FISCAL YEAR HAS ELAPSED06/09/2026 11:18AM PAGE: 9 CITY OF ST JOSEPH EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 5 MONTHS ENDING MAY 31, 2026 GENERAL FUND PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT 101-43125-101ICE & SNOW REMOVAL SALARIES31,865.5023,534.4867,210.0067,210.0043,675.5235.0 101-43125-120MN PAID LEAVE.00179.11390.00390.00210.8945.9 101-43125-121PERA CONTRIBUTIONS2,359.981,731.934,545.004,545.002,813.0738.1 101-43125-122FICA CONTRIBUTIONS2,337.801,742.924,015.004,015.002,272.0843.4 101-43125-125MEDICARE CONTRIBUTIONS.00.00940.00940.00940.00.0 101-43125-130H S A- EMPLOYER CONTRIBUTION.00.002,755.002,755.002,755.00.0 101-43125-131HEALTH INSURANCE.00.0013,620.0013,620.0013,620.00.0 101-43125-132DENTAL INSURANCE.00.00820.00820.00820.00.0 101-43125-133LIFE INSURANCE6.9531.8155.0055.0023.1957.8 101-43125-134DISABILTY INSURANCE38.756.86590.00590.00583.141.2 101-43125-205MOTOR FUEL2,486.712,393.204,765.004,765.002,371.8050.2 101-43125-210OPERATING SUPPLIES36,238.6221,800.4855,000.0055,000.0033,199.5239.6 101-43125-220REPAIR AND MAINTENANCE.00172.58.00.00( 172.58).0 101-43125-230VEHICLE REPAIR & MAINTENANCE12,404.846,980.4320,000.0020,000.0013,019.5734.9 101-43131-303ENGINEERING FEE19,098.5325,657.3955,000.0055,000.0029,342.6146.7 101-43201-200OFFICE SUPPLIES46.33153.08315.00315.00161.9248.6 101-43201-210OPERATING SUPPLIES2,788.243,734.2210,000.0010,000.006,265.7837.3 101-43201-214SMALL TOOL & MINOR EQUIPMENT416.16159.542,000.002,000.001,840.468.0 101-43201-220REPAIR AND MAINTENANCE1,339.174,878.185,000.005,000.00121.8297.6 101-43201-300PROFESSIONAL SERVICES862.584,149.952,050.002,050.00( 2,099.95)202.4 101-43201-321TELEPHONE1,953.841,987.204,345.004,345.002,357.8045.7 101-43201-381ELECTRIC UTILITIES4,161.404,068.9212,120.0012,120.008,051.0833.6 101-43201-383GAS UTILITIES7,616.717,569.329,435.009,435.001,865.6880.2 101-43201-410RENTALS66.0072.60240.00240.00167.4030.3 101-43220-101SALARIES5,406.796,834.4217,935.0017,935.0011,100.5838.1 101-43220-120MN PAID LEAVE.0031.33105.00105.0073.6729.8 101-43220-121PERA CONTRIBUTIONS399.91385.811,330.001,330.00944.1929.0 101-43220-122FICA CONTRIBUTIONS404.39385.281,065.001,065.00679.7236.2 101-43220-125MEDICARE CONTRIBUTIONS.00.00250.00250.00250.00.0 101-43220-130H S A- EMPLOYER CONTRIBUTION.00.00675.00675.00675.00.0 101-43220-131HEALTH INSURANCE.00.004,110.004,110.004,110.00.0 101-43220-132DENTAL INSURANCE.00.00225.00225.00225.00.0 101-43220-133LIFE INSURANCE6.442.9115.0015.0012.0919.4 101-43220-134DISABILTY INSURANCE19.403.43175.00175.00171.572.0 101-43220-205MOTOR FUEL19.99.00100.00100.00100.00.0 101-43220-230VEHICLE REPAIR & MAINTENANCE1,678.01606.682,625.002,625.002,018.3223.1 FOR ADMINISTRATION USE ONLY41 % OF THE FISCAL YEAR HAS ELAPSED06/09/2026 11:18AM PAGE: 10 CITY OF ST JOSEPH EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 5 MONTHS ENDING MAY 31, 2026 GENERAL FUND PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT 101-45123-101WARMING HOUSE SALARIES4,824.344,515.148,660.008,660.004,144.8652.1 101-45123-120MN PAID LEAVE.0027.0350.0050.0022.9754.1 101-45123-122FICA CONTRIBUTIONS369.06345.38535.00535.00189.6264.6 101-45123-125MEDICARE CONTRIBUTIONS.00.00125.00125.00125.00.0 101-45123-151WORKERS COMP. INSUR. PREM..00.00235.00235.00235.00.0 101-45123-210OPERATING SUPPLIES.00.001,570.001,570.001,570.00.0 101-45123-220REPAIR AND MAINTENANCE.00.00525.00525.00525.00.0 101-45123-381ELECTRIC UTILITIES421.33443.61435.00435.00( 8.61)102.0 101-45123-383GAS UTILITIES145.42195.55940.00940.00744.4520.8 101-45125-210OPERATING SUPPLIES.0049.87750.00750.00700.136.7 101-45125-220REPAIR AND MAINTENANCE57.31.001,575.001,575.001,575.00.0 101-45202-101PARK SALARIES85,648.3887,794.04225,675.00225,675.00137,880.9638.9 101-45202-120MN PAID LEAVE.00494.811,305.001,305.00810.1937.9 101-45202-121PERA CONTRIBUTIONS6,228.136,536.1915,580.0015,580.009,043.8142.0 101-45202-122FICA CONTRIBUTIONS6,276.675,687.5413,505.0013,505.007,817.4642.1 101-45202-123DEFERRED COMP-EMPLOYER( 189.92).00195.00195.00195.00.0 101-45202-125MEDICARE CONTRIBUTIONS.00.003,160.003,160.003,160.00.0 101-45202-130H S A- EMPLOYER CONTRIBUTION2,756.603,310.358,800.008,800.005,489.6537.6 101-45202-131HEALTH INSURANCE13,274.6014,476.2547,130.0047,130.0032,653.7530.7 101-45202-132DENTAL INSURANCE755.60710.942,830.002,830.002,119.0625.1 101-45202-133LIFE INSURANCE83.9367.61185.00185.00117.3936.6 101-45202-134DISABILTY INSURANCE873.65605.462,035.002,035.001,429.5429.8 101-45202-151WORKERS COMP. INSUR. PREM..00.006,945.006,945.006,945.00.0 101-45202-171CLOTHING ALLOWANCE100.53163.191,740.001,740.001,576.819.4 101-45202-200OFFICE SUPPLIES.00114.96150.00150.0035.0476.6 101-45202-201POSTAGE41.68.00100.00100.00100.00.0 101-45202-205MOTOR FUEL2,358.962,384.708,105.008,105.005,720.3029.4 101-45202-210OPERATING SUPPLIES4,428.395,835.5130,000.0030,000.0024,164.4919.5 101-45202-214SMALL TOOL & MINOR EQUIPMENT125.96142.98500.00500.00357.0228.6 101-45202-220REPAIR AND MAINTENANCE3,856.401,527.1920,000.0020,000.0018,472.817.6 101-45202-230VEHICLE REPAIR & MAINTENANCE3,557.795,137.3110,000.0010,000.004,862.6951.4 101-45202-300PROFESSIONAL SERVICES3,478.585,482.0222,500.0022,500.0017,017.9824.4 101-45202-310SOFTWARE SUPPORT1,377.711,480.373,300.003,300.001,819.6344.9 FOR ADMINISTRATION USE ONLY41 % OF THE FISCAL YEAR HAS ELAPSED06/09/2026 11:18AM PAGE: 11 CITY OF ST JOSEPH EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 5 MONTHS ENDING MAY 31, 2026 GENERAL FUND PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT 101-45204-101RECREATION SALARIES14,151.7013,546.3563,165.0063,165.0049,618.6521.5 101-45204-120MN PAID LEAVE.0077.71375.00375.00297.2920.7 101-45204-121PERA CONTRIBUTIONS1,061.38960.352,705.002,705.001,744.6535.5 101-45204-122FICA CONTRIBUTIONS1,082.62979.563,915.003,915.002,935.4425.0 101-45204-125MEDICARE CONTRIBUTIONS.00.00915.00915.00915.00.0 101-45204-151WORKERS COMP. INSUR. PREM..00.00515.00515.00515.00.0 101-45204-171CLOTHING ALLOWANCE.00.00400.00400.00400.00.0 101-45204-200OFFICE SUPPLIES60.0535.00210.00210.00175.0016.7 101-45204-201POSTAGE.00.00315.00315.00315.00.0 101-45204-210OPERATING SUPPLIES6.22.00790.00790.00790.00.0 101-45204-213CONCESSIONS.00121.80370.00370.00248.2032.9 101-45204-220REPAIR AND MAINTENANCE215.48.00525.00525.00525.00.0 101-45204-300PROFESSIONAL SERVICES1,707.71450.722,000.002,000.001,549.2822.5 101-45204-308COMMUNITY PROGRAMS3,829.834,047.687,500.007,500.003,452.3254.0 101-45204-310SOFTWARE SUPPORT3,476.253,650.064,440.004,440.00789.9482.2 101-45204-321TELEPHONE165.56115.23520.00520.00404.7722.2 101-45204-328MARKETING318.98110.40750.00750.00639.6014.7 101-45204-331TRAVEL & CONFERENCE EXPENSE50.0085.751,260.001,260.001,174.256.8 101-49300-720TRANSFERS TO OTHER FUNDS7,000.00.00.00.00.00.0 102-41430-110SEVERANCE PAYMENT1,959.30.00.00.00.00.0 102-42120-110SEVERANCE PAYMENT.0037,066.02.00.00( 37,066.02).0 109-41942-300PROFESSIONAL SERVICES.00.0020,000.0020,000.0020,000.00.0 109-42151-580OTHER EQUIPMENT.00.009,200.009,200.009,200.00.0 109-42152-550MOTOR VEHICLES41,519.08.0015,000.0015,000.0015,000.00.0 109-42152-580OTHER EQUIPMENT7,784.1257,884.4419,700.0019,700.00( 38,184.44)293.8 109-42152-581COMPUTER HARDWARE.00.001,000.001,000.001,000.00.0 109-42500-580OTHER EQUIPMENT.00.00500.00500.00500.00.0 109-43125-580OTHER EQUIPMENT.00.0036,375.0036,375.0036,375.00.0 109-43201-520BUILDINGS & STRUCTURES.004,609.00.00.00( 4,609.00).0 109-43201-580OTHER EQUIPMENT7,236.6623,490.153,000.003,000.00( 20,490.15)783.0 IMPROVEMENTS OTHER THAN BLDG109-45202-530.001,314.808,000.008,000.006,685.2016.4 109-45202-550MOTOR VEHICLES.0022,847.585,000.005,000.00( 17,847.58)457.0 109-45202-580OTHER EQUIPMENT2,150.00.0021,700.0021,700.0021,700.00.0 109-49300-720TRANSFERS TO OTHER FUNDS32,365.12.00.00.00.00.0 110-41430-300PROFESSIONAL SERVICES20,149.4020,091.6520,000.0020,000.00( 91.65)100.5 110-41941-580OTHER EQUIPMENT.00.00110,000.00110,000.00110,000.00.0 110-41942-300PROFESSIONAL SERVICES.00.002,000.002,000.002,000.00.0 FOR ADMINISTRATION USE ONLY41 % OF THE FISCAL YEAR HAS ELAPSED06/09/2026 11:18AM PAGE: 12 CITY OF ST JOSEPH EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 5 MONTHS ENDING MAY 31, 2026 DEBT SERVICE RELIEF PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT 110-42120-300PROFESSIONAL SERVICES2,800.00.002,000.002,000.002,000.00.0 110-42120-580OTHER EQUIPMENT10,994.12.00.00.00.00.0 110-43120-300PROFESSIONAL SERVICES.00.002,000.002,000.002,000.00.0 110-43201-220REPAIR AND MAINTENANCE900.00.00.00.00.00.0 110-43201-520BUILDINGS & STRUCTURES2,495.35.00.00.00.00.0 110-43201-580OTHER EQUIPMENT.00.0010,000.0010,000.0010,000.00.0 110-45202-300PROFESSIONAL SERVICES.00.0022,000.0022,000.0022,000.00.0 110-49300-720TRANSFERS TO OTHER FUNDS24,850.0068,500.0018,500.0018,500.00( 50,000.00)370.3 TOTAL GENERAL FUND EXPENDITUR 1,861,104.572,095,597.815,597,680.005,597,680.003,502,082.1937.4 NET REVENUE OVER EXPENDITURES( 1,738,834.07)( 1,940,484.29)( 2,135,802.00)( 2,135,802.00)( 195,317.71)( 90.9) FOR ADMINISTRATION USE ONLY41 % OF THE FISCAL YEAR HAS ELAPSED06/09/2026 11:18AM PAGE: 13 CITYOFSTJOSEPH BALANCESHEET MAY31, 2026 FUND 601 - WATER FUND ASSETS 601-10199CASH1,082,104.77 601-10500ACCOUNTS RECEIVABLE121,413.45 601-12100SPECIAL ASSESSMENTS RECEIVABLE25,811.49 601-16100LAND372,941.34 601-16200BUILDING7,502,432.35 601-16210ACCUMULATED DEPR. BUILDING( 3,462,574.77) 601-16300TREATMENT PLANT & LINE11,624,002.57 601-16305IMPROVEMENTS NOT BUILDINGS315,192.96 601-16310ACCUMULATED DEPR. PLANT & LINE( 4,870,618.58) 601-16315ACCUM DEPN - IMPROVE NOT BLDGS( 120,990.68) 601-16400MACHINERY & EQUIPMENT362,174.61 601-16410ACCUMULATED DEPR. MACH & EQUIP( 260,575.82) 601-16500CONSTRUCTION IN PROGRESS58,854.47 601-17100DEFERRED OUTFLOWS OF RESOURCES27,522.00 TOTAL ASSETS12,777,690.16 LIABILITIES AND EQUITY LIABILITIES 601-20200ACCOUNTS PAYABLE248.79 601-22204DEFERRED INFLOW OF RESOURCES48,212.00 601-22500BONDS PAYABLE -CURRENT PORTION115,000.00 601-22530REVENUE BONDS PAYABLE445,000.00 601-22810ACCRUED FRINGE BENEFITS22,948.60 601-22820NONCURRENT FRINGE BENEFITS66,678.40 601-22840NET PENSION LIABILITY74,252.00 601-23200UNAMORTIZED BOND PREMIUM20,264.04 TOTAL LIABILITIES792,603.83 FUND EQUITY 601-25310UNASSIGNED FUND BALANCE4,380,870.84 601-26100CONTRIB. FROM DEVELOPERS1,488,015.21 601-26140CONTRIB. FROM CAPITAL FUNDS6,336,429.14 REVENUE OVER EXPENDITURES - YTD( 220,228.86) TOTAL FUND EQUITY11,985,086.33 TOTAL LIABILITIES AND EQUITY12,777,690.16 CITY OF ST JOSEPH REVENUES WITH COMPARISON TO BUDGET FOR THE 5 MONTHS ENDING MAY 31, 2026 WATER FUND PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETCURRENT BUDGETUNEARNEDPCNT UTILITIES REVENUE 601-00000-31010CURRENT AD VALOREM TAXES.00( .69).00.00.69.0 601-00000-31320STATE SALES TAX268.74( 43.58).00.0043.58.0 601-00000-34221WATER TOWER ANTENNA LEASE9,614.079,902.5223,790.0023,790.0013,887.4841.6 601-00000-36100SPECIAL ASSESSMENTS( 814.12)( 2,439.98)525.00525.002,964.98(464.8) 601-00000-36210INTEREST EARNINGS23,791.98( 2,959.26)26,250.0026,250.0029,209.26( 11.3) 601-00000-36300REIMBURSEMENT.001,052.43.00.00( 1,052.43).0 601-00000-37110USAGE RATE202,692.23209,247.26868,100.00868,100.00658,852.7424.1 601-00000-37111BULK WATER37.7527.58770.00770.00742.423.6 601-00000-37115UNDESIGNATED FUNDS60.0090.00.00.00( 90.00).0 601-00000-37150CONNECTION/RECONNECTION FEES300.00600.001,000.001,000.00400.0060.0 601-00000-37160PENALTIES AND FORFEITED DISC2,024.142,161.772,500.002,500.00338.2386.5 601-00000-37171WATER METER10,624.003,401.452,500.002,500.00( 901.45)136.1 601-00000-37180WATER FIXED CHARGE120,546.61126,311.92411,550.00411,550.00285,238.0830.7 601-00000-37181MDS TEST FEE6,037.589,574.1728,500.0028,500.0018,925.8333.6 601-00000-39201TRANSFERS FROM OTHER FUNDS21,182.565,000.0065,000.0065,000.0060,000.007.7 TOTAL UTILITIES REVENUE396,365.54361,925.591,430,485.001,430,485.001,068,559.4125.3 TOTAL FUND REVENUE396,365.54361,925.591,430,485.001,430,485.001,068,559.4125.3 FOR ADMINISTRATION USE ONLY41 % OF THE FISCAL YEAR HAS ELAPSED06/09/2026 11:05AM PAGE: 1 CITY OF ST JOSEPH EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 5 MONTHS ENDING MAY 31, 2026 WATER FUND PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT BOND PAYMENT (P & I) 601-47100-413LEASE PAYMENTS.00.005,800.005,800.005,800.00.0 601-47100-600DEBT SERVICE - PRINCIPAL.00.00115,000.00115,000.00115,000.00.0 601-47100-611BOND INTEREST496.001,286.1115,260.0015,260.0013,973.898.4 601-47100-620AGENT FEES.00.00750.00750.00750.00.0 TOTAL BOND PAYMENT (P & I)496.001,286.11136,810.00136,810.00135,523.89.9 OTHER FINANCING USES 601-49300-720TRANSFERS TO OTHER FUNDS6,865.006,145.006,145.006,145.00.00100.0 TOTAL OTHER FINANCING USES6,865.006,145.006,145.006,145.00.00100.0 POWER AND PUMPING 601-49410-220REPAIR AND MAINTENANCE2,900.00.007,875.007,875.007,875.00.0 601-49410-300PROFESSIONAL SERVICES.00.0026,250.0026,250.0026,250.00.0 601-49410-381ELECTRIC UTILITIES1,827.441,658.947,310.007,310.005,651.0622.7 601-49410-383GAS UTILITIES643.85669.201,345.001,345.00675.8049.8 TOTAL POWER AND PUMPING5,371.292,328.1442,780.0042,780.0040,451.865.4 FOR ADMINISTRATION USE ONLY41 % OF THE FISCAL YEAR HAS ELAPSED06/09/2026 11:05AM PAGE: 2 CITY OF ST JOSEPH EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 5 MONTHS ENDING MAY 31, 2026 WATER FUND PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT PURIFICATION-PLANT 1 601-49420-210OPERATING SUPPLIES9,159.517,000.2818,900.0018,900.0011,899.7237.0 601-49420-220REPAIR AND MAINTENANCE3,781.7910,900.8239,270.0039,270.0028,369.1827.8 601-49420-300PROFESSIONAL SERVICES.00483.331,260.001,260.00776.6738.4 601-49420-310SOFTWARE SUPPORT.00.00190.00190.00190.00.0 601-49420-312TESTS1,155.001,320.003,990.003,990.002,670.0033.1 601-49420-321TELEPHONE1,953.841,987.204,345.004,345.002,357.8045.7 601-49420-381ELECTRIC UTILITIES4,065.514,026.6012,375.0012,375.008,348.4032.5 601-49420-383GAS UTILITIES1,184.281,388.242,150.002,150.00761.7664.6 601-49420-580OTHER EQUIPMENT.00.0056,500.0056,500.0056,500.00.0 TOTAL PURIFICATION-PLANT 121,299.9327,106.47138,980.00138,980.00111,873.5319.5 PURIFICATION-PLANT 2 601-49421-210OPERATING SUPPLIES6,781.977,050.8829,400.0029,400.0022,349.1224.0 601-49421-214SMALL TOOL & MINOR EQUIPMENT.0045.00525.00525.00480.008.6 601-49421-220REPAIR AND MAINTENANCE6,480.8015,330.9331,500.0031,500.0016,169.0748.7 601-49421-300PROFESSIONAL SERVICES1,195.00725.003,500.003,500.002,775.0020.7 601-49421-310SOFTWARE SUPPORT.00.00190.00190.00190.00.0 601-49421-321TELEPHONE2,378.842,412.205,400.005,400.002,987.8044.7 601-49421-381ELECTRIC UTILITIES11,020.0711,090.3739,590.0039,590.0028,499.6328.0 601-49421-383GAS UTILITIES4,393.635,928.778,595.008,595.002,666.2369.0 601-49421-580OTHER EQUIPMENT.00.00100,000.00100,000.00100,000.00.0 TOTAL PURIFICATION-PLANT 232,250.3142,583.15218,700.00218,700.00176,116.8519.5 FOR ADMINISTRATION USE ONLY41 % OF THE FISCAL YEAR HAS ELAPSED06/09/2026 11:05AM PAGE: 3 CITY OF ST JOSEPH EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 5 MONTHS ENDING MAY 31, 2026 WATER FUND PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT DISTRIBUTION 601-49430-210OPERATING SUPPLIES266,182.37282,193.23270,000.00270,000.00( 12,193.23)104.5 601-49430-220REPAIR AND MAINTENANCE3,506.5927,581.537,875.007,875.00( 19,706.53)350.2 601-49430-300PROFESSIONAL SERVICES6,423.0410,035.3585,575.0085,575.0075,539.6511.7 TOTAL DISTRIBUTION276,112.00319,810.11363,450.00363,450.0043,639.8988.0 WELLHEAD PROTECTION 601-49434-303ENGINEERING FEE.00.003,000.003,000.003,000.00.0 TOTAL WELLHEAD PROTECTION.00.003,000.003,000.003,000.00.0 STORAGE-TOWER 1 601-49435-220REPAIR AND MAINTENANCE.00.002,625.002,625.002,625.00.0 601-49435-300PROFESSIONAL SERVICES.00.00315.00315.00315.00.0 601-49435-321TELEPHONE1,778.841,812.203,915.003,915.002,102.8046.3 601-49435-381ELECTRIC UTILITIES1,441.481,373.713,525.003,525.002,151.2939.0 IMPROVEMENTS OTHER THAN BLDG601-49435-530.00.0040,000.0040,000.0040,000.00.0 TOTAL STORAGE-TOWER 13,220.323,185.9150,380.0050,380.0047,194.096.3 FOR ADMINISTRATION USE ONLY41 % OF THE FISCAL YEAR HAS ELAPSED06/09/2026 11:05AM PAGE: 4 CITY OF ST JOSEPH EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 5 MONTHS ENDING MAY 31, 2026 WATER FUND PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT WATER MAINTENANCE 601-49440-101WATER DEPT SALARIES4,511.0090,026.36190,080.00190,080.00100,053.6447.4 601-49440-120MN PAID LEAVE.00525.881,100.001,100.00574.1247.8 601-49440-121PERA CONTRIBUTIONS6,018.726,630.7814,020.0014,020.007,389.2247.3 601-49440-122FICA CONTRIBUTIONS138.916,106.5311,365.0011,365.005,258.4753.7 601-49440-123DEFERRED COMP-EMPLOYER( 417.53)197.751,125.001,125.00927.2517.6 601-49440-125MEDICARE CONTRIBUTIONS.00.002,655.002,655.002,655.00.0 601-49440-130H S A- EMPLOYER CONTRIBUTION1,897.822,243.487,915.007,915.005,671.5228.3 601-49440-131HEALTH INSURANCE8,922.1010,214.9236,810.0036,810.0026,595.0827.8 601-49440-132DENTAL INSURANCE569.40591.801,640.001,640.001,048.2036.1 601-49440-133LIFE INSURANCE78.1267.94150.00150.0082.0645.3 601-49440-134DISABILTY INSURANCE688.45501.191,815.001,815.001,313.8127.6 601-49440-151WORKERS COMP. INSUR. PREM..00.002,890.002,890.002,890.00.0 601-49440-171CLOTHING ALLOWANCE227.56427.301,150.001,150.00722.7037.2 601-49440-200OFFICE SUPPLIES179.98.00210.00210.00210.00.0 601-49440-201POSTAGE12.2014.902,600.002,600.002,585.10.6 601-49440-205MOTOR FUEL2,536.303,637.1110,650.0010,650.007,012.8934.2 601-49440-210OPERATING SUPPLIES635.03507.392,100.002,100.001,592.6124.2 601-49440-214SMALL TOOL & MINOR EQUIPMENT46.0227.982,000.002,000.001,972.021.4 601-49440-220REPAIR AND MAINTENANCE22,486.5552.0021,000.0021,000.0020,948.00.3 601-49440-230VEHICLE REPAIR & MAINTENANCE606.47316.152,625.002,625.002,308.8512.0 601-49440-300PROFESSIONAL SERVICES5,735.00463.4510,500.0010,500.0010,036.554.4 601-49440-303ENGINEERING FEE1,779.40161.501,575.001,575.001,413.5010.3 601-49440-310SOFTWARE SUPPORT15.75.00775.00775.00775.00.0 601-49440-314SAFETY PROGRAM457.79105.281,435.001,435.001,329.727.3 601-49440-319GOPHER STATE NOTIFICATION139.08301.07785.00785.00483.9338.4 601-49440-321TELEPHONE504.04481.201,245.001,245.00763.8038.7 601-49440-331TRAVEL & CONFERENCE EXPENSE712.60882.001,050.001,050.00168.0084.0 601-49440-361GENERAL LIABILITY INSURANCE26,053.5425,922.7726,110.0026,110.00187.2399.3 601-49440-433DUES & MEMBERSHIPS1,291.301,093.271,250.001,250.00156.7387.5 601-49440-437REAL ESTATE TAXES324.00326.00350.00350.0024.0093.1 601-49440-442WATER PERMIT2,590.222,779.043,950.003,950.001,170.9670.4 601-49440-444ANNUAL WATER CONNECTION FEE4,520.007,180.0028,500.0028,500.0021,320.0025.2 601-49440-446LICENSE33.2075.69210.00210.00134.3136.0 601-49440-550MOTOR VEHICLES16,954.54.003,500.003,500.003,500.00.0 601-49440-580OTHER EQUIPMENT.00.002,000.002,000.002,000.00.0 FOR ADMINISTRATION USE ONLY41 % OF THE FISCAL YEAR HAS ELAPSED06/09/2026 11:05AM PAGE: 5 CITY OF ST JOSEPH EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 5 MONTHS ENDING MAY 31, 2026 WATER FUND PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT 601-49440-581COMPUTER HARDWARE.002,469.00750.00750.00( 1,719.00)329.2 TOTAL WATER MAINTENANCE110,247.56164,329.73397,885.00397,885.00233,555.2741.3 WATER GENERAL ADMINISTRATION 601-49490-101WATER ADMIN SALARIES5,698.896,797.4222,395.0022,395.0015,597.5830.4 601-49490-120MN PAID LEAVE.0039.83125.00125.0085.1731.9 601-49490-121PERA CONTRIBUTIONS499.19460.511,680.001,680.001,219.4927.4 601-49490-122FICA CONTRIBUTIONS426.58467.631,285.001,285.00817.3736.4 601-49490-125MEDICARE CONTRIBUTIONS.00.00300.00300.00300.00.0 601-49490-130H S A- EMPLOYER CONTRIBUTION240.00250.00600.00600.00350.0041.7 601-49490-131HEALTH INSURANCE1,540.201,555.065,400.005,400.003,844.9428.8 601-49490-132DENTAL INSURANCE83.3074.97375.00375.00300.0320.0 601-49490-133LIFE INSURANCE6.655.3220.0020.0014.6826.6 601-49490-134DISABILTY INSURANCE76.4054.62225.00225.00170.3824.3 601-49490-151WORKERS COMP. INSUR. PREM..00.0055.0055.0055.00.0 601-49490-171CLOTHING ALLOWANCE.00.0015.0015.0015.00.0 601-49490-200OFFICE SUPPLIES66.63.00150.00150.00150.00.0 601-49490-201POSTAGE1,003.781,741.413,150.003,150.001,408.5955.3 601-49490-210OPERATING SUPPLIES570.97410.622,400.002,400.001,989.3817.1 601-49490-300PROFESSIONAL SERVICES.00.004,200.004,200.004,200.00.0 601-49490-310SOFTWARE SUPPORT2,723.953,031.075,935.005,935.002,903.9351.1 601-49490-317OTHER FEES.00.0015.0015.0015.00.0 601-49490-331TRAVEL & CONFERENCE EXPENSE7.009.28250.00250.00240.723.7 601-49490-340ADVERTISING.0018.34165.00165.00146.6611.1 601-49490-410RENTALS507.06463.75525.00525.0061.2588.3 601-49490-581COMPUTER HARDWARE.00.00250.00250.00250.00.0 TOTAL WATER GENERAL ADMINISTRA 13,450.6015,379.8349,515.0049,515.0034,135.1731.1 FOR ADMINISTRATION USE ONLY41 % OF THE FISCAL YEAR HAS ELAPSED06/09/2026 11:05AM PAGE: 6 CITY OF ST JOSEPH EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 5 MONTHS ENDING MAY 31, 2026 WATER FUND PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT DEPRECIATION EXPENSE 601-49970-420DEPRECIATION.00.00475,000.00475,000.00475,000.00.0 TOTAL DEPRECIATION EXPENSE.00.00475,000.00475,000.00475,000.00.0 TOTAL FUND EXPENDITURES469,313.01582,154.451,882,645.001,882,645.001,300,490.5530.9 NET REVENUE OVER EXPENDITURES( 72,947.47)( 220,228.86)( 452,160.00)( 452,160.00)( 231,931.14)( 48.7) FOR ADMINISTRATION USE ONLY41 % OF THE FISCAL YEAR HAS ELAPSED06/09/2026 11:05AM PAGE: 7 CITYOFSTJOSEPH BALANCESHEET MAY31, 2026 FUND 602 - SEWER FUND ASSETS 602-10199CASH3,758,111.03 602-10500ACCOUNTS RECEIVABLE201,876.53 602-16100LAND4,940.50 602-16200BUILDING1,295,253.80 602-16210ACCUMULATED DEPR. BUILDING( 432,809.91) 602-16300TREATMENT PLANT & LINE9,940,907.92 602-16310ACCUMULATED DEPR. PLANT & LINE( 3,750,776.22) 602-16320INTANGIBLE ASSETS9,180,409.24 602-16330ACCUMULATED DEPR. INTANGIBLES( 3,841,405.73) 602-16400MACHINERY & EQUIPMENT830,975.46 602-16410ACCUMULATED DEPR. MACH & EQUIP( 640,241.96) 602-16500CONSTRUCTION IN PROGRESS1,882,310.37 602-17100DEFERRED OUTFLOWS OF RESOURCES27,522.00 TOTAL ASSETS18,457,073.03 LIABILITIES AND EQUITY LIABILITIES 602-20200ACCOUNTS PAYABLE685.59 602-20202DUE TO OTHER GOVT UNITS47,101.57 602-22204DEFERRED INFLOW OF RESOURCES47,428.00 602-22500BONDS PAYABLE -CURRENT PORTION135,000.00 602-22510NOTES PAYABLE -CURRENT PORTION443,494.00 602-22530REVENUE BONDS PAYABLE275,000.00 602-22540NONCURRENT NOTES PAYABLE3,209,715.00 602-22810ACCRUED FRINGE BENEFITS22,948.60 602-22820NONCURRENT FRINGE BENEFITS66,678.40 602-22840NET PENSION LIABILITY74,252.00 602-23200UNAMORTIZED BOND PREMIUM21,172.39 TOTAL LIABILITIES4,343,475.55 FUND EQUITY 602-25310UNASSIGNED FUND BALANCE5,998,533.60 602-26120CONTRIB. FROM DEVELOPERS1,735,533.93 602-26140CONTRIB. FROM CAPITAL FUNDS6,288,285.33 REVENUE OVER EXPENDITURES - YTD91,244.62 TOTAL FUND EQUITY14,113,597.48 TOTAL LIABILITIES AND EQUITY18,457,073.03 CITY OF ST JOSEPH REVENUES WITH COMPARISON TO BUDGET FOR THE 5 MONTHS ENDING MAY 31, 2026 SEWER FUND PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT UTILITIES REVENUE 602-00000-36100SPECIAL ASSESSMENTS( 748.83)( 936.10)420.00420.001,356.10(222.9) 602-00000-36210INTEREST EARNINGS48,387.90( 5,351.96)36,750.0036,750.0042,101.96( 14.6) 602-00000-36230CONTRIBUTIONS - GENERAL165.00236.00735.00735.00499.0032.1 602-00000-37110SANITARY SEWER USE SERVICE314,185.55311,634.14942,400.00942,400.00630,765.8633.1 602-00000-37160PENALTIES AND FORFEITED DISC2,786.832,862.533,500.003,500.00637.4781.8 602-00000-37180SEWER FIXED CHARGE225,471.54227,276.48674,335.00674,335.00447,058.5233.7 602-00000-39201TRANSFERS FROM OTHER FUNDS16,182.56.0072,500.0072,500.0072,500.00.0 TOTAL UTILITIES REVENUE606,430.55535,721.091,730,640.001,730,640.001,194,918.9131.0 TOTAL FUND REVENUE606,430.55535,721.091,730,640.001,730,640.001,194,918.9131.0 FOR ADMINISTRATION USE ONLY41 % OF THE FISCAL YEAR HAS ELAPSED06/09/2026 11:05AM PAGE: 8 CITY OF ST JOSEPH EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 5 MONTHS ENDING MAY 31, 2026 SEWER FUND PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT BOND PAYMENT (P & I) 602-47100-600DEBT SERVICE - PRINCIPAL.00.00135,000.00135,000.00135,000.00.0 602-47100-611BOND INTEREST.00( 364.44)11,000.0011,000.0011,364.44( 3.3) 602-47100-620AGENT FEES.00.00380.00380.00380.00.0 TOTAL BOND PAYMENT (P & I).00( 364.44)146,380.00146,380.00146,744.44( .3) OTHER FINANCING USES 602-49300-720TRANSFERS TO OTHER FUNDS29,050.0028,330.0028,330.0028,330.00.00100.0 TOTAL OTHER FINANCING USES29,050.0028,330.0028,330.0028,330.00.00100.0 FOR ADMINISTRATION USE ONLY41 % OF THE FISCAL YEAR HAS ELAPSED06/09/2026 11:05AM PAGE: 9 CITY OF ST JOSEPH EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 5 MONTHS ENDING MAY 31, 2026 SEWER FUND PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT SANITARY SEWER MAINTENANCE 602-49450-101SEWER DEPT SALARIES( 22,935.59)60,328.10178,050.00178,050.00117,721.9033.9 602-49450-120MN PAID LEAVE.00349.011,025.001,025.00675.9934.1 602-49450-121PERA CONTRIBUTIONS3,958.004,437.1313,150.0013,150.008,712.8733.7 602-49450-122FICA CONTRIBUTIONS( 1,833.36)4,032.1610,615.0010,615.006,582.8438.0 602-49450-123DEFERRED COMP-EMPLOYER( 401.96)197.76995.00995.00797.2419.9 602-49450-125MEDICARE CONTRIBUTIONS.00.002,485.002,485.002,485.00.0 602-49450-130H S A- EMPLOYER CONTRIBUTION1,716.242,092.247,675.007,675.005,582.7627.3 602-49450-131HEALTH INSURANCE8,050.1010,023.0135,070.0035,070.0025,046.9928.6 602-49450-132DENTAL INSURANCE525.90583.021,640.001,640.001,056.9835.6 602-49450-133LIFE INSURANCE50.6751.05145.00145.0093.9535.2 602-49450-134DISABILTY INSURANCE655.90474.501,700.001,700.001,225.5027.9 602-49450-151WORKERS COMP. INSUR. PREM..00.002,435.002,435.002,435.00.0 602-49450-171CLOTHING ALLOWANCE226.66427.011,150.001,150.00722.9937.1 602-49450-200OFFICE SUPPLIES.00102.85210.00210.00107.1549.0 602-49450-205MOTOR FUEL2,956.393,455.6911,095.0011,095.007,639.3131.2 602-49450-210OPERATING SUPPLIES1,086.96915.122,310.002,310.001,394.8839.6 602-49450-214SMALL TOOL & MINOR EQUIPMENT123.22111.731,575.001,575.001,463.277.1 602-49450-220REPAIR AND MAINTENANCE1,521.11105.007,875.007,875.007,770.001.3 602-49450-230VEHICLE REPAIR & MAINTENANCE2,738.931,728.524,725.004,725.002,996.4836.6 602-49450-300PROFESSIONAL SERVICES.00463.4710,500.0010,500.0010,036.534.4 602-49450-303ENGINEERING FEE.00303.601,050.001,050.00746.4028.9 602-49450-310SOFTWARE SUPPORT15.75.00775.00775.00775.00.0 602-49450-321TELEPHONE504.04481.161,000.001,000.00518.8448.1 602-49450-331TRAVEL & CONFERENCE EXPENSE362.60879.001,050.001,050.00171.0083.7 602-49450-361GENERAL LIABILITY INSURANCE12,298.5410,698.7712,000.0012,000.001,301.2389.2 602-49450-433DUES & MEMBERSHIPS1,039.30833.281,015.001,015.00181.7282.1 602-49450-446LICENSE33.2096.18210.00210.00113.8245.8 IMPROVEMENTS OTHER THAN BLDG602-49450-530170.10.00.00.00.00.0 602-49450-550MOTOR VEHICLES16,954.55.003,500.003,500.003,500.00.0 602-49450-580OTHER EQUIPMENT.00990.0054,500.0054,500.0053,510.001.8 602-49450-581COMPUTER HARDWARE.00978.60750.00750.00( 228.60)130.5 TOTAL SANITARY SEWER MAINTENA 29,817.25105,137.96370,275.00370,275.00265,137.0428.4 FOR ADMINISTRATION USE ONLY41 % OF THE FISCAL YEAR HAS ELAPSED06/09/2026 11:05AM PAGE: 10 CITY OF ST JOSEPH EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 5 MONTHS ENDING MAY 31, 2026 SEWER FUND PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT LIFT STATION-BAKER STREET 602-49470-220REPAIR AND MAINTENANCE1,417.4016,756.202,625.002,625.00( 14,131.20)638.3 602-49470-300PROFESSIONAL SERVICES325.00325.00315.00315.00( 10.00)103.2 602-49470-381ELECTRIC UTILITIES1,611.001,545.714,255.004,255.002,709.2936.3 IMPROVEMENTS OTHER THAN BLDG602-49470-530.00.002,500.002,500.002,500.00.0 TOTAL LIFT STATION-BAKER STREET3,353.4018,626.919,695.009,695.00( 8,931.91)192.1 LIFT STATION-RIDGEWOOD/DBL 602-49471-220REPAIR AND MAINTENANCE.003.992,625.002,625.002,621.01.2 602-49471-300PROFESSIONAL SERVICES.00.00315.00315.00315.00.0 602-49471-381ELECTRIC UTILITIES617.16619.531,780.001,780.001,160.4734.8 602-49471-383GAS UTILITIES315.81284.02525.00525.00240.9854.1 IMPROVEMENTS OTHER THAN BLDG602-49471-530.007,718.37107,500.00107,500.0099,781.637.2 TOTAL LIFT STATION-RIDGEWOOD/DB 932.978,625.91112,745.00112,745.00104,119.097.7 LIFT STATION-NORTHLAND 602-49472-220REPAIR AND MAINTENANCE.00.002,625.002,625.002,625.00.0 602-49472-381ELECTRIC UTILITIES457.40445.201,315.001,315.00869.8033.9 IMPROVEMENTS OTHER THAN BLDG602-49472-530.00.002,500.002,500.002,500.00.0 TOTAL LIFT STATION-NORTHLAND457.40445.206,440.006,440.005,994.806.9 FOR ADMINISTRATION USE ONLY41 % OF THE FISCAL YEAR HAS ELAPSED06/09/2026 11:05AM PAGE: 11 CITY OF ST JOSEPH EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 5 MONTHS ENDING MAY 31, 2026 SEWER FUND PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT LIFT STATION-CR 121 602-49473-220REPAIR AND MAINTENANCE.00909.122,625.002,625.001,715.8834.6 602-49473-381ELECTRIC UTILITIES679.441,229.722,000.002,000.00770.2861.5 IMPROVEMENTS OTHER THAN BLDG602-49473-530.00.002,500.002,500.002,500.00.0 TOTAL LIFT STATION-CR 121679.442,138.847,125.007,125.004,986.1630.0 LIFT STATION-MAIN 602-49480-201POSTAGE.00.00210.00210.00210.00.0 602-49480-210OPERATING SUPPLIES.0014,008.0515,750.0015,750.001,741.9588.9 602-49480-220REPAIR AND MAINTENANCE6,165.47.005,250.005,250.005,250.00.0 602-49480-300PROFESSIONAL SERVICES325.00325.00164,925.00164,925.00164,600.00.2 602-49480-312TESTS2,906.004,098.0010,000.0010,000.005,902.0041.0 602-49480-321TELEPHONE1,778.851,812.223,915.003,915.002,102.7846.3 602-49480-381ELECTRIC UTILITIES1,872.452,442.116,735.006,735.004,292.8936.3 602-49480-383GAS UTILITIES458.78490.06685.00685.00194.9471.5 602-49480-419SEWER USE RENTAL92,777.7695,712.44315,000.00315,000.00219,287.5630.4 602-49480-580OTHER EQUIPMENT.00.003,000.003,000.003,000.00.0 602-49480-602ST. CLOUD DEBT SERVICE96,733.11146,862.02570,000.00570,000.00423,137.9825.8 TOTAL LIFT STATION-MAIN203,017.42265,749.901,095,470.001,095,470.00829,720.1024.3 FOR ADMINISTRATION USE ONLY41 % OF THE FISCAL YEAR HAS ELAPSED06/09/2026 11:05AM PAGE: 12 CITY OF ST JOSEPH EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 5 MONTHS ENDING MAY 31, 2026 SEWER FUND PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT SEWER GENERAL ADMINISTRATION 602-49490-101SEWER ADMIN SALARIES5,698.896,797.4222,395.0022,395.0015,597.5830.4 602-49490-120MN PAID LEAVE.0039.83125.00125.0085.1731.9 602-49490-121PERA CONTRIBUTIONS499.19460.511,680.001,680.001,219.4927.4 602-49490-122FICA CONTRIBUTIONS426.58467.631,285.001,285.00817.3736.4 602-49490-125MEDICARE CONTRIBUTIONS.00.00300.00300.00300.00.0 602-49490-130H S A- EMPLOYER CONTRIBUTION240.00250.00600.00600.00350.0041.7 602-49490-131HEALTH INSURANCE1,540.201,555.065,400.005,400.003,844.9428.8 602-49490-132DENTAL INSURANCE83.3074.97375.00375.00300.0320.0 602-49490-133LIFE INSURANCE6.655.3220.0020.0014.6826.6 602-49490-134DISABILTY INSURANCE76.4054.62225.00225.00170.3824.3 602-49490-151WORKERS COMP. INSUR. PREM..00.0055.0055.0055.00.0 602-49490-171CLOTHING ALLOWANCE.00.0015.0015.0015.00.0 602-49490-200OFFICE SUPPLIES66.63.00315.00315.00315.00.0 602-49490-201POSTAGE1,003.791,741.413,150.003,150.001,408.5955.3 602-49490-210OPERATING SUPPLIES570.97410.621,750.001,750.001,339.3823.5 602-49490-300PROFESSIONAL SERVICES.00.004,200.004,200.004,200.00.0 602-49490-310SOFTWARE SUPPORT2,723.953,031.075,935.005,935.002,903.9351.1 602-49490-314SAFETY PROGRAM128.58105.281,435.001,435.001,329.727.3 602-49490-319GOPHER STATE NOTIFICATION139.07301.08525.00525.00223.9257.4 602-49490-331TRAVEL & CONFERENCE EXPENSE7.009.28250.00250.00240.723.7 602-49490-340ADVERTISING.0018.34.00.00( 18.34).0 602-49490-410RENTALS507.08463.75525.00525.0061.2588.3 602-49490-581COMPUTER HARDWARE.00.00250.00250.00250.00.0 TOTAL SEWER GENERAL ADMINISTR 13,718.2815,786.1950,810.0050,810.0035,023.8131.1 DEPRECIATION EXPENSE 602-49970-420DEPRECIATION.00.00565,000.00565,000.00565,000.00.0 TOTAL DEPRECIATION EXPENSE.00.00565,000.00565,000.00565,000.00.0 FOR ADMINISTRATION USE ONLY41 % OF THE FISCAL YEAR HAS ELAPSED06/09/2026 11:05AM PAGE: 13 CITY OF ST JOSEPH EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 5 MONTHS ENDING MAY 31, 2026 SEWER FUND PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT TOTAL FUND EXPENDITURES281,026.16444,476.472,392,270.002,392,270.001,947,793.5318.6 NET REVENUE OVER EXPENDITURES325,404.3991,244.62( 661,630.00)( 661,630.00)( 752,874.62)13.8 FOR ADMINISTRATION USE ONLY41 % OF THE FISCAL YEAR HAS ELAPSED06/09/2026 11:05AM PAGE: 14 CITYOFSTJOSEPH BALANCESHEET MAY31, 2026 FUND 603 - REFUSE/RECYCLING/COMPOST ASSETS 603-10199CASH288,661.03 603-10500ACCOUNTS RECEIVABLE70,886.18 603-16400MACHINERY & EQUIPMENT67,848.68 603-16410ACCUMULATED DEPR. MACH & EQUIP( 54,129.08) 603-17100DEFERRED OUTFLOWS OF RESOURCES2,747.00 TOTAL ASSETS376,013.81 LIABILITIES AND EQUITY LIABILITIES 603-22204DEFERRED INFLOW OF RESOURCES4,637.00 603-22810ACCRUED FRINGE BENEFITS738.89 603-22840NET PENSION LIABILITY7,411.00 TOTAL LIABILITIES12,786.89 FUND EQUITY 603-25310UNASSIGNED FUND BALANCE291,810.25 603-26140CONTRIB. FROM CAPITAL FUNDS42,015.46 REVENUE OVER EXPENDITURES - YTD29,401.21 TOTAL FUND EQUITY363,226.92 TOTAL LIABILITIES AND EQUITY376,013.81 CITY OF ST JOSEPH REVENUES WITH COMPARISON TO BUDGET FOR THE 5 MONTHS ENDING MAY 31, 2026 REFUSE/RECYCLING/COMPOST PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT UTILITIES REVENUE 603-00000-31320STATE SALES TAX( 73.96)19.05.00.00( 19.05).0 603-00000-32000LICENSES & PERMITS27,360.0023,860.0035,320.0035,320.0011,460.0067.6 603-00000-34404PENALTIES AND FORFEIFTED DISC1,396.211,501.902,625.002,625.001,123.1057.2 603-00000-36100SPECIAL ASSESSMENTS( 368.17)( 264.75)210.00210.00474.75(126.1) 603-00000-36210INTEREST EARNINGS3,097.40( 397.95)4,000.004,000.004,397.95( 10.0) 603-00000-37105REFUSE COLLECTION CHARGES160,886.46178,705.18610,365.00610,365.00431,659.8229.3 603-00000-39201TRANSFERS FROM OTHER FUNDS24,850.0018,500.0018,500.0018,500.00.00100.0 TOTAL UTILITIES REVENUE217,147.94221,923.43671,020.00671,020.00449,096.5733.1 TOTAL FUND REVENUE217,147.94221,923.43671,020.00671,020.00449,096.5733.1 FOR ADMINISTRATION USE ONLY41 % OF THE FISCAL YEAR HAS ELAPSED06/09/2026 11:05AM PAGE: 15 CITY OF ST JOSEPH EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 5 MONTHS ENDING MAY 31, 2026 REFUSE/RECYCLING/COMPOST PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT WASTE COLLECTION 603-43230-101REFUSE SALARIES6,614.007,031.9826,865.0026,865.0019,833.0226.2 603-43230-120MN PAID LEAVE.0041.63150.00150.00108.3727.8 603-43230-121PERA CONTRIBUTIONS566.88478.182,015.002,015.001,536.8223.7 603-43230-122FICA CONTRIBUTIONS491.30484.731,560.001,560.001,075.2731.1 603-43230-125MEDICARE CONTRIBUTIONS.00.00365.00365.00365.00.0 603-43230-130H S A- EMPLOYER CONTRIBUTION300.00365.41915.00915.00549.5939.9 603-43230-131HEALTH INSURANCE1,977.701,889.116,480.006,480.004,590.8929.2 603-43230-132DENTAL INSURANCE113.4097.02450.00450.00352.9821.6 603-43230-133LIFE INSURANCE7.265.6525.0025.0019.3522.6 603-43230-134DISABILTY INSURANCE94.9068.24270.00270.00201.7625.3 603-43230-151WORKERS COMP. INSUR. PREM..00.00205.00205.00205.00.0 603-43230-171CLOTHING ALLOWANCE.00.0015.0015.0015.00.0 603-43230-200OFFICE SUPPLIES66.63.00105.00105.00105.00.0 603-43230-201POSTAGE1,003.791,741.412,150.002,150.00408.5981.0 603-43230-210OPERATING SUPPLIES680.00700.00700.00700.00.00100.0 603-43230-300PROFESSIONAL SERVICES19,530.0016,100.0030,985.0030,985.0014,885.0052.0 603-43230-302MAINTENANCE REIMBURSEMENT1,180.002,000.002,000.002,000.00.00100.0 603-43230-310SOFTWARE SUPPORT2,543.112,841.075,745.005,745.002,903.9349.5 603-43230-331TRAVEL & CONFERENCE EXPENSE7.009.26250.00250.00240.743.7 603-43230-340ADVERTISING.0018.34.00.00( 18.34).0 603-43230-384REFUSE DISPOSAL151,363.47157,986.44541,540.00541,540.00383,553.5629.2 603-43230-410RENTALS507.09463.751,200.001,200.00736.2538.7 603-43230-510LAND AND LAND IMPROVEMENTS.00.0015,000.0015,000.0015,000.00.0 603-43230-580OTHER EQUIPMENT.00.005,750.005,750.005,750.00.0 603-43230-581COMPUTER HARDWARE.00.00250.00250.00250.00.0 TOTAL WASTE COLLECTION187,046.53192,322.22644,990.00644,990.00452,667.7829.8 FOR ADMINISTRATION USE ONLY41 % OF THE FISCAL YEAR HAS ELAPSED06/09/2026 11:06AM PAGE: 16 CITY OF ST JOSEPH EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 5 MONTHS ENDING MAY 31, 2026 REFUSE/RECYCLING/COMPOST PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT OTHER FINANCING USES 603-49300-720TRANSFERS TO OTHER FUNDS145.00200.00200.00200.00.00100.0 TOTAL OTHER FINANCING USES145.00200.00200.00200.00.00100.0 DEPRECIATION EXPENSE 603-49970-420DEPRECIATION.00.003,200.003,200.003,200.00.0 TOTAL DEPRECIATION EXPENSE.00.003,200.003,200.003,200.00.0 TOTAL FUND EXPENDITURES187,191.53192,522.22648,390.00648,390.00455,867.7829.7 NET REVENUE OVER EXPENDITURES29,956.4129,401.2122,630.0022,630.00( 6,771.21)129.9 FOR ADMINISTRATION USE ONLY41 % OF THE FISCAL YEAR HAS ELAPSED06/09/2026 11:06AM PAGE: 17 CITYOFSTJOSEPH BALANCESHEET MAY31, 2026 FUND 651 - STORM WATER UTILITY ASSETS 651-10199CASH814,954.01 651-10500ACCOUNTS RECEIVABLE25,846.54 651-16300TREATMENT PLANT & LINE7,331,027.05 651-16310ACCUMULATED DEPR. PLANT & LINE( 2,437,118.59) 651-16320INTANGIBLE ASSETS67,914.92 651-16400MACHINERY & EQUIPMENT172,098.95 651-16410ACCUMULATED DEPR. MACH & EQUIP( 147,235.21) 651-17100DEFERRED OUTFLOWS OF RESOURCES8,442.00 TOTAL ASSETS5,835,929.67 LIABILITIES AND EQUITY LIABILITIES 651-22204DEFERRED INFLOW OF RESOURCES14,250.00 651-22810ACCRUED FRINGE BENEFITS2,138.35 651-22820NONCURRENT FRINGE BENEFITS2,662.08 651-22840NET PENSION LIABILITY22,777.00 TOTAL LIABILITIES41,827.43 FUND EQUITY 651-25310UNASSIGNED FUND BALANCE2,597,512.27 651-26100CONTRIB. FROM DEVELOPERS505,905.98 651-26140CONTRIB. FROM CAPITAL FUNDS2,716,542.00 REVENUE OVER EXPENDITURES - YTD( 25,858.01) TOTAL FUND EQUITY5,794,102.24 TOTAL LIABILITIES AND EQUITY5,835,929.67 CITY OF ST JOSEPH REVENUES WITH COMPARISON TO BUDGET FOR THE 5 MONTHS ENDING MAY 31, 2026 STORM WATER UTILITY PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT UTILITIES REVENUE 1252. 651-00000-36100SPECIAL ASSESSMENTS( 4,242.75)( 2,505.04)200.00200.002,705.04 651-00000-36210INTEREST EARNINGS9,575.97( 1,023.80)6,000.006,000.007,023.80( 17.1) 651-00000-37110STORM WATER USE SERVICE73,763.7575,758.71231,565.00231,565.00155,806.2932.7 651-00000-37160PENALTIES AND FORFEIFTED DISC452.32466.881,630.001,630.001,163.1228.6 TOTAL UTILITIES REVENUE79,549.2972,696.75239,395.00239,395.00166,698.2530.4 TOTAL FUND REVENUE79,549.2972,696.75239,395.00239,395.00166,698.2530.4 FOR ADMINISTRATION USE ONLY41 % OF THE FISCAL YEAR HAS ELAPSED06/09/2026 11:06AM PAGE: 18 CITY OF ST JOSEPH EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 5 MONTHS ENDING MAY 31, 2026 STORM WATER UTILITY PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT OTHER FINANCING USES 651-49300-720TRANSFERS TO OTHER FUNDS18,855.0018,630.0018,630.0018,630.00.00100.0 TOTAL OTHER FINANCING USES18,855.0018,630.0018,630.0018,630.00.00100.0 STORM WATER GENERAL ADMIN 651-49490-101STORMWATER ADMIN SALARIES4,274.205,098.0513,435.0013,435.008,336.9538.0 651-49490-120MN PAID LEAVE.0029.8675.0075.0045.1439.8 651-49490-121PERA CONTRIBUTIONS374.36345.361,010.001,010.00664.6434.2 651-49490-122FICA CONTRIBUTIONS319.97350.76770.00770.00419.2445.6 651-49490-125MEDICARE CONTRIBUTIONS.00.00180.00180.00180.00.0 651-49490-130H S A- EMPLOYER CONTRIBUTION180.00187.50360.00360.00172.5052.1 651-49490-131HEALTH INSURANCE1,155.201,166.293,240.003,240.002,073.7136.0 651-49490-132DENTAL INSURANCE62.5056.25225.00225.00168.7525.0 651-49490-133LIFE INSURANCE5.004.0010.0010.006.0040.0 651-49490-134DISABILTY INSURANCE57.3040.99135.00135.0094.0130.4 651-49490-151WORKERS COMP. INSUR. PREM..00.0030.0030.0030.00.0 651-49490-171CLOTHING ALLOWANCE.00.0010.0010.0010.00.0 651-49490-200OFFICE SUPPLIES66.63.00105.00105.00105.00.0 651-49490-201POSTAGE920.461,591.42.00.00( 1,591.42).0 651-49490-300PROFESSIONAL SERVICES.001,636.00.00.00( 1,636.00).0 651-49490-310SOFTWARE SUPPORT2,369.762,609.005,170.005,170.002,561.0050.5 651-49490-331TRAVEL & CONFERENCE EXPENSE590.256.97150.00150.00143.034.7 651-49490-340ADVERTISING.0018.35.00.00( 18.35).0 651-49490-581COMPUTER HARDWARE.00.00250.00250.00250.00.0 TOTAL STORM WATER GENERAL ADM 10,375.6313,140.8025,155.0025,155.0012,014.2052.2 FOR ADMINISTRATION USE ONLY41 % OF THE FISCAL YEAR HAS ELAPSED06/09/2026 11:06AM PAGE: 19 CITY OF ST JOSEPH EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 5 MONTHS ENDING MAY 31, 2026 STORM WATER UTILITY PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT STORM WATER MAINTENANCE 651-49900-101STORMWATER DEPT SALARIES6,085.255,978.8550,400.0050,400.0044,421.1511.9 651-49900-120MN PAID LEAVE.0033.65290.00290.00256.3511.6 651-49900-121PERA CONTRIBUTIONS679.78353.843,700.003,700.003,346.169.6 651-49900-122FICA CONTRIBUTIONS457.34378.902,990.002,990.002,611.1012.7 651-49900-123DEFERRED COMP-EMPLOYER.00113.00485.00485.00372.0023.3 651-49900-125MEDICARE CONTRIBUTIONS.00.00700.00700.00700.00.0 651-49900-130H S A- EMPLOYER CONTRIBUTION229.45300.561,850.001,850.001,549.4416.3 651-49900-131HEALTH INSURANCE875.001,943.759,750.009,750.007,806.2519.9 651-49900-132DENTAL INSURANCE60.20117.53375.00375.00257.4731.3 651-49900-133LIFE INSURANCE6.895.5540.0040.0034.4513.9 651-49900-134DISABILTY INSURANCE77.50116.46480.00480.00363.5424.3 651-49900-151WORKERS COMP. INSUR. PREM..00.00660.00660.00660.00.0 651-49900-171CLOTHING ALLOWANCE19.2038.53.00.00( 38.53).0 651-49900-210OPERATING SUPPLIES.00.001,680.001,680.001,680.00.0 651-49900-220REPAIR AND MAINTENANCE3,343.99.0010,000.0010,000.0010,000.00.0 16727. 651-49900-300PROFESSIONAL SERVICES400.0041,818.00250.00250.00( 41,568.00) 651-49900-302MAINTENANCE REIMBURSEMENT14,000.0014,000.0014,000.0014,000.00.00100.0 651-49900-303ENGINEERING FEE635.901,245.005,250.005,250.004,005.0023.7 651-49900-308COMMUNITY PROGRAMS1,620.00.001,890.001,890.001,890.00.0 651-49900-310SOFTWARE SUPPORT.00.001,760.001,760.001,760.00.0 651-49900-321TELEPHONE352.28340.341,025.001,025.00684.6633.2 651-49900-331TRAVEL & CONFERENCE EXPENSE.00.00250.00250.00250.00.0 651-49900-340ADVERTISING.00.0080.0080.0080.00.0 651-49900-410RENTALS.00.00260.00260.00260.00.0 IMPROVEMENTS OTHER THAN BLDG651-49900-530288.50.0010,500.0010,500.0010,500.00.0 651-49900-580OTHER EQUIPMENT.00.0016,800.0016,800.0016,800.00.0 TOTAL STORM WATER MAINTENANCE 29,131.2866,783.96135,465.00135,465.0068,681.0449.3 FOR ADMINISTRATION USE ONLY41 % OF THE FISCAL YEAR HAS ELAPSED06/09/2026 11:06AM PAGE: 20 CITY OF ST JOSEPH EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 5 MONTHS ENDING MAY 31, 2026 STORM WATER UTILITY PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT DEPRECIATION EXPENSE 651-49970-420DEPRECIATION.00.00170,000.00170,000.00170,000.00.0 TOTAL DEPRECIATION EXPENSE.00.00170,000.00170,000.00170,000.00.0 TOTAL FUND EXPENDITURES58,361.9198,554.76349,250.00349,250.00250,695.2428.2 NET REVENUE OVER EXPENDITURES21,187.38( 25,858.01)( 109,855.00)( 109,855.00)( 83,996.99)( 23.5) FOR ADMINISTRATION USE ONLY41 % OF THE FISCAL YEAR HAS ELAPSED06/09/2026 11:06AM PAGE: 21 CITYOFSTJOSEPH BALANCESHEET MAY31, 2026 FUND 652 - STREET LIGHT UTILITY ASSETS 652-10199CASH154,945.92 652-10500ACCOUNTS RECEIVABLE11,158.14 652-16400MACHINERY & EQUIPMENT4,000.00 652-16410ACCUMULATED DEPN-MACH&EQUIP( 571.43) 652-17100DEFERRED OUTFLOWS OF RESOURCES1,100.00 TOTAL ASSETS170,632.63 LIABILITIES AND EQUITY LIABILITIES 652-22204DEFERRED INFLOW OF RESOURCES1,857.00 652-22810ACCRUED FRINGE BENEFITS369.44 652-22840NET PENSION LIABILITY2,968.00 TOTAL LIABILITIES5,194.44 FUND EQUITY 652-25310UNASSIGNED FUND BALANCE167,071.88 REVENUE OVER EXPENDITURES - YTD( 1,633.69) TOTAL FUND EQUITY165,438.19 TOTAL LIABILITIES AND EQUITY170,632.63 CITY OF ST JOSEPH REVENUES WITH COMPARISON TO BUDGET FOR THE 5 MONTHS ENDING MAY 31, 2026 STREET LIGHT UTILITY PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT UTILITIES REVENUE 652-00000-36100SPECIAL ASSESSMENTS( 36.30)( 51.19)50.0050.00101.19(102.4) 652-00000-36210INTEREST EARNINGS2,002.50( 211.21)3,500.003,500.003,711.21( 6.0) 652-00000-37110USAGE RATE29,513.7129,926.7292,090.0092,090.0062,163.2832.5 652-00000-37160PENALTIES AND FORFEITED DISC148.10157.20400.00400.00242.8039.3 TOTAL UTILITIES REVENUE31,628.0129,821.5296,040.0096,040.0066,218.4831.1 TOTAL FUND REVENUE31,628.0129,821.5296,040.0096,040.0066,218.4831.1 FOR ADMINISTRATION USE ONLY41 % OF THE FISCAL YEAR HAS ELAPSED06/09/2026 11:06AM PAGE: 22 CITY OF ST JOSEPH EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 5 MONTHS ENDING MAY 31, 2026 STREET LIGHT UTILITY PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT STREET LIGHTING 652-43160-101STREET LIGHT SALARIES4,153.474,346.5418,740.0018,740.0014,393.4623.2 652-43160-120MN PAID LEAVE.0026.63105.00105.0078.3725.4 652-43160-121PERA CONTRIBUTIONS348.61292.411,390.001,390.001,097.5921.0 652-43160-122FICA CONTRIBUTIONS310.88299.801,090.001,090.00790.2027.5 652-43160-123DEFERRED COMP.0028.25345.00345.00316.758.2 652-43160-125MEDICARE CONTRIBUTIONS.00.00255.00255.00255.00.0 652-43160-130H S A- EMPLOYER CONTRIBUTION349.46275.75240.00240.00( 35.75)114.9 652-43160-131HEALTH INSURANCE1,645.001,306.204,110.004,110.002,803.8031.8 652-43160-132DENTAL INSURANCE101.9070.57225.00225.00154.4331.4 652-43160-133LIFE INSURANCE4.843.6815.0015.0011.3224.5 652-43160-134DISABILTY INSURANCE76.9054.54185.00185.00130.4629.5 652-43160-151WORKERS COMP. INSUR. PREM..00.00275.00275.00275.00.0 652-43160-171CLOTHING ALLOWANCE.00.005.005.005.00.0 652-43160-201POSTAGE920.461,591.41.00.00( 1,591.41).0 652-43160-220REPAIR AND MAINTENANCE.002,287.634,200.004,200.001,912.3754.5 652-43160-310SOFTWARE SUPPORT354.18492.38850.00850.00357.6257.9 652-43160-331TRAVEL & CONFERENCE EXPENSE3.504.64105.00105.00100.364.4 652-43160-340ADVERTISING.0018.34.00.00( 18.34).0 652-43160-386STREET LIGHTING18,485.1019,533.4656,825.0056,825.0037,291.5434.4 652-43160-387HOLIDAY DECORATIONS.00.002,000.002,000.002,000.00.0 IMPROVEMENTS OTHER THAN BLDG652-43160-530.0022.9815,000.0015,000.0014,977.02.2 652-43160-580OTHER EQUIPMENT.00.00750.00750.00750.00.0 TOTAL STREET LIGHTING26,754.3030,655.21106,710.00106,710.0076,054.7928.7 OTHER FINANCING USES 652-49300-720TRANSFERS TO OTHER FUNDS950.00800.00800.00800.00.00100.0 TOTAL OTHER FINANCING USES950.00800.00800.00800.00.00100.0 FOR ADMINISTRATION USE ONLY41 % OF THE FISCAL YEAR HAS ELAPSED06/09/2026 11:06AM PAGE: 23 CITY OF ST JOSEPH EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 5 MONTHS ENDING MAY 31, 2026 STREET LIGHT UTILITY PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT TOTAL FUND EXPENDITURES27,704.3031,455.21107,510.00107,510.0076,054.7929.3 NET REVENUE OVER EXPENDITURES3,923.71( 1,633.69)( 11,470.00)( 11,470.00)( 9,836.31)( 14.2) FOR ADMINISTRATION USE ONLY41 % OF THE FISCAL YEAR HAS ELAPSED06/09/2026 11:06AM PAGE: 24 STAFF MEMO Prepared by: Community Development Meeting Date: 06/15/26 ☒ Consent Agenda Item ☐ Regular Agenda Item Agenda Item # 4e Reviewed by: Item: Cherrico Pottery Home Occupation License Amendment Council Priority: ☐ Dispensary ☐ Industrial Park Expansion ☐ Housing ☐ Public Safety Facility/Safe Crossing of CSAH 75 ☒ N/A ACTION REQUESTED Consent gives automatic approval of resolution 2026-034. If item is pulled from consent staff requests a motion of approval on resolution 2026-034. BOARD/COMMISSION/COMMITTEE RECOMMENDATION Planning Commission conducted a public hearing at their June 8th meeting (no one spoke at the hearing besides the applicant). To-date no written comments or calls have been received by staff on the requested amendment. Planning Commission voted unanimously (5-0) to approve the amendment. PREVIOUS COUNCIL ACTION The Home Occupation License for Cherrico was approved April 21st, 2025 by Council. This action renewed the license until 2030 (max duration of five years). REFERENCE AND BACKGROUND Joel and Sienna Cherrico have requested to amend their Special Home Occupation license for their pottery business at 29055 County Road 121. The property is 1.16 acres in size and the home occupation is currently conducted out of the detached garage. The owners are requesting an amendment to allow for 12 on-site and in-person retail sales in a calendar year. The current approval allows for a maximum of four on-site and in-person retail sales. To-date there have been zero complaints or concerns staff have received in regard to the Home Occupation license (going back to the original approvals). Plenty of parking exists on the property to handle in-person sales and on-site events once a month. BUDGET IMPACT N/A STAFF RECOMMENDED ACTION Approval of resolution 2026-034 SUPPORTING DATA/ATTACHMENTS Amendment request by applicant Resolution 2026-034 RESOLUTION 2026-034 ADOPTING FINDINGS OF FACT AND APPROVING AN AMENDMENT TO A SPECIAL HOME OCCUPATION LICENSE FOR AN ART STUDIO WHEREAS, Joel Cherrico and Sienna Cherrico, hereinafter referred to as “Applicant,” have properly applied for a special home occupation license for an art studio on the property generally described as 29055 County Road 121, St. Joseph, MN Parcel ID’s 84.53433.0062 and 84.53494.0204 (“Subject Property”); and WHEREAS, the St. Joseph Planning Commission reviewed the request, conducted a public hearing and recommended approval of the special home occupation license amendment on June 8th, 2026; and NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ST. JOSEPH, MINNESOTA, hereby makes the following Findings of Fact: 1. That the Subject Property is zoned R-1, Single Family Residential District and an art studio operated in an accessory structure may be permitted contingent on approval of a special home occupation license. 2. That the home occupation will not be detrimental to or endanger public health, safety, morals, comfort, or general welfare of the neighborhood and will be harmonious to the to the objectives of the Comprehensive Plan of the City. 3. That the art studio will be located within the existing detached garage on the Subject Property which is 231 +/- feet from CR 121, located in the back yard, and therefore, it is designed and constructed and will be operated and maintained so as to be harmonious and appropriate in appearance with character of the area and will not be hazardous or disturbing to existing or future neighboring uses. 4. That adequate utilities and services, including utilities, streets, drainage and other necessary facilities have been provided and will not create excessive additional costs for services and/or be detrimental to the economic welfare of the community. 5. That the home occupation will not involve activities, processes, materials, equipment and conditions of operation that will be detrimental to any persons, property, or general welfare because of excessive production of traffic, noise, smoke, fumes, glare or odors. 6. That the existing access from County Road 121/College Avenue South provides access to the Subject Property which will not create traffic congestion or interfere with traffic or surrounding public thoroughfares. 7. That the existing driveway will provide sufficient off-street parking to serve the proposed use. BE IT FURTHER RESOLVED BY THE CITY COUNCIL OF THE CITY OF ST. JOSEPH, MINNESOTA, as follows: 1. Based on the aforementioned Findings of Fact, a special home occupation license to allow the operation of an art studio in a detached garage as shown in Exhibit A on the Subject Property is hereby granted. 2. The property owner will manage the Subject Property in compliance with the St. Joseph Code of Ordinances. 3. The home occupation on the Subject Property shall be limited to one full-time employee and no more than one (1) additional full-time employee and one additional part-time employee on the premises. If an increase in the number of full-time or part-time employees occurs, then this increase shall trigger an amendment to the Special Home Occupation license. 4. That operation of the home occupation shall be limited to the existing 3,000 Square Foot detached garage as depicted in Exhibit A. 5. That outdoor storage of equipment or materials used in the home occupation on the Subject Property is prohibited, except for personal automobiles. 6. The home-occupation may conduct up to a maximum of twelve on-site and in-person retail sales events in a calendar year; no other in-person or on-site retail activity shall be conducted; all other retail operations shall be limited to wholesale, mail, or online orders and shipments. 7. The property owner is responsible for meeting all Federal, State, Local, and City requirements and obtaining any and all permits and licenses. 8. Revocation: The City Council shall revoke the home occupation license if it determines that the terms and conditions of the license as issued are no longer being complied with. 9. Expiration: The License shall expire on June 15th, 2031. 10. The Zoning Administrator and/or his/her designee shall have the right to inspect the premises in which the occupation is being conducted to ensure compliance with the provisions of the license and City Ordinance. Whereupon said resolution was declared duly passed and adopted by the St. Joseph City Council this 15th day of June, 2026. CITY OF ST. JOSEPH By Adam Scepaniak, Mayor ATTEST By David Murphy, City Administrator Document drafted by: City of St. Joseph 75 Callaway St E St. Joseph, MN 56374 EXHIBIT A - Detached Garage where the home occupation is conducted STAFF MEMO Prepared by: Community Development Meeting Date: 06/15/26 ☒ Consent Agenda Item ☐ Regular Agenda Item Agenda Item # 4f Reviewed by: Item: Bayou Alley Lofts CIC Plat, and Declaration Council Priority: ☐ Dispensary ☐ Industrial Park Expansion ☐ Housing ☐ Public Safety Facility/Safe Crossing of CSAH 75 ☒ N/A ACTION REQUESTED Consent gives automatic approval of CIC Plat and Declaration. If item is pulled from consent staff asks that the Council make a motion to approve resolution 2026-032 BOARD/COMMISSION/COMMITTEE RECOMMENDATION N/A (Planning Commission does not need to take action on a existing plat that is converting to a CIC plat) PREVIOUS COUNCIL ACTION Bayou Alley Flats was platted in 2017. An amendment to the Developers Agreement and Planned Unit Development Agreement occurred in 2025 for the Flower and Flour expansion. REFERENCE AND BACKGROUND CIC Plat The owner of Bayou Alley Flats (24 North Lofts) is proposing to convert the existing suites into individually owned residential and commercial units. This conversion requires approval of a Common Interest Community (CIC) Plat. The CIC will create separate parcel identification numbers (Parcel IDs) for each loft and commercial unit, allowing them to be individually owned. An owners’ association will be established to manage the property and maintain all common elements, including walkways, stairs, parking areas, garages, and other shared facilities. The association will also assume responsibility for fulfilling the Tax Increment Financing (TIF) requirements referenced in Item 4g of the Council agenda. Declaration A declaration is also recommended to occur with the CIC plat. The Flower and Flour building currently encroaches into a small portion of the city dedicated alleyway. This encroachment has existed since the structure was built and is considered a legal non-conforming structure. A declaration is recommended by legal so the encroachment is formally recognized and recorded on the property and as part of the CIC plat. BUDGET IMPACT None STAFF RECOMMENDED ACTION Approval of CIC Plat and Declaration through Resolution 2026-032 SUPPORTING DATA/ATTACHMENTS CIC Plat Resolution 2026-032 Declaration 4911-6024-4397, v. 2 BAYOU ALLEY FLATS CONDOMINIMUM CONVERSION To the City of St. Joseph: The applicant is requesting approval of a Common Interest Community (“CIC”) plat and condominium conversion for the existing Bayou Alley Flats development located in downtown St. Joseph. The application is to convert the existing mixed-use development into a condominium form of ownership under Minnesota Statutes Chapter 515B (MCIOA). The proposed condominium structure is intended primarily to: 1. Allow separate ownership of the residential, commercial, and garages (owned only by unit owners) of the development; 2. Establish maintenance, operational, and ownership responsibilities; 3. Facilitate financing and future transfers of individual units; and 4. Preserve and formalize the existing mixed-use nature of the property. The CIC plat establishes: 1. Two commercial units (including the existing restaurant and bakery uses); 2. Seventeen residential condominium units; and 3. Fourteen garage units. Importantly, the condominium conversion does not materially alter the existing site layout, building footprints, parking configuration, or established uses. The conversion changes the legal ownership structure of the property rather than the physical development itself. The documents also specifically recognize and preserve existing City approvals and obligations, including: 1. Existing PUD approvals; 2. Existing TIF obligations and development agreements; 3. Existing utility and access easements; and 4. Existing encroachment conditions associated with the bakery structure (an agreement which has been separately submitted). The applicant respectfully requests approval of the CIC plat and condominium conversion so the property can continue operating as a coordinated mixed-use downtown development while allowing individual ownership and long-term management flexibility. 0 20 40 SCALE IN FEET I, Samuel J. DeLeo, do hereby certify that this work was undertaken by, or reviewed and approved by, me for this CIC Plat of COMMON INTEREST COMMUNITY NUMBER 125, BAYOU ALLEY LOFTS, being located upon: ST SS XCXC WATER LINE STORM SEWER PIPE SANITARY SEWER PIPE CONC. CURB & GUTTER CHAINLINK FENCE STORM SEWER MANHOLE SANITARY SEWER MANHOLE CATCH BASIN WATER VALVE LIGHT POLE UTILITY PEDESTAL UTILITY METER STSTSSSS SET MAGNETIC "PK" NAIL FOUND IRON MONUMENT SET IRON PIPE WITH CAP STAMPED "DELEO 40341" GOVERNMENT SECTION CORNER MONUMENT DIMENSION PER DEED OF RECORD(D) X COMPUTED POSITION LCE ORIENTATION OF THIS BEARING SYSTEM ASSUMES THAT THE EAST-WEST QUARTER SECTION LINE OF SEC. 10, TWP. 124, RNG. 29 BEARS NORTH 8918’ 39" EAST LIMITED COMMON ELEMENT FLOOR ELEVATION CEILING ELEVATION F.E. C.E. Which fully and accurately depicts all information required by Minnesota Statutes Section 515B.2-110 (c), Dated this _________ day of ___________________, 20_____. ___________________________________ Samuel J. DeLeo, Licensed Land Surveyor Minnesota License Number 40341 STATE OF MINNESOTA COUNTY OF STEARNS The foregoing Surveyors Certification was acknowledged before me this _________ day of ___________________, 20_____ by Samuel J. DeLeo, Licensed Land Surveyor, Minnesota License Number 40341. ___________________________________ Sidney Theis Notary Public Stearns County, Minnesota My commission expires January 31, 2027 I, Hung Ly, pursuant to Minnesota Statutes, Section 515B.2-101(c), do hereby certify that the structural components of the structures containing the units and the mechanical systems serving more than one unit, are substantially completed. Dated this _________ day of ___________________, 20_____. ___________________________________ Hung Ly, Licensed Architect Minnesota License No. 50746 STATE OF MINNESOTA COUNTY OF _________________ The foregoing instrument was acknowledged before me this _________ day of ___________________, 20_____ by Hung Ly, Licensed Architect, Minnesota License Number 50746. ___________________________________ ___________________________________ (Notary Signature) (Notary Printed Name) Notary Public _____________________________ County, Minnesota My commission expires _________________________ DRAFT KRAMER LEAS DELEO SURVEYING ENGINEERING PLANNING BRAINERD ST. CLOUD 6/10/2026 Sheet 1 of 3 Sheets Lot 1, Block 1, BAYOU ALLEY FLATS, according to the plat and survey thereof on file and of record in the office of the County Recorder, in and for Stearns County, Minnesota. TOGETHER WITH that part of the northerly 64.00 feet of Lots 1, 2 and 3, Block 10, TOWNSITE OF ST JOSEPH, Stearns County, Minnesota, according to the recorded plat thereof, lying westerly of the following described Line A, and lying southerly of the following described Line B. Line A Beginning at a point on the north line of said Lot 3 distant 4.93 feet westerly of the northeast corner of said Lot 3, as measured along said north line; thence southerly 64.03 feet, more or less, to the point of intersection of a line distant 64.00 feet southerly of, as measured at a right angle to and parallel with the northerly line of said Lot 3, and the east line of said Lot 3, and there terminating, Line B Commencing at the most westerly corner of said Block 10; thence South 17 degrees 09 minutes 25 seconds East, assumed bearing along the westerly line of said Block 10 for 60.00 feet to a line distant 60.00 feet southerly of, as measured at a right angle to and parallel with the north line of said Lots 1 and 2, said point also being the point of beginning; thence North 73 degrees 20 minutes 16 seconds East, along the last described parallel line and its easterly extension for 178.05 feet to the afore described Line A and there terminating. Pursuant to Minnesota Statutes, Chapter 389.09, this CIC plat has been reviewed and is approved this _________ day of ___________________, 20_____. ___________________________________ Stearns County Surveyor, Minnesota License Number _____________ Pursuant to Minnesota Statutes, Section 515B.2-116 and Section 272.12, taxes payable in the year __________________, on real estate hereinbefore described, have been paid; there are no delinquent taxes and transfer entered, on this _________ day of ___________________, 20_____. ______________________________________________ County Auditor / Treasurer, CountyName County, Minnesota XCXC C o n c r e t e W a l k Concrete W a l k Concrete W a l k Concrete A p r o n C o n c r e t e W a l k Paved Parking Lot Paved Parking Lot Paved Parking Lot COMMON ELEMENT COMMON ELEMENT Concrete P a t i o LOT 1 BLOCK 1 1 Story G a r a g e UNITS G 8 - G 1 4 ( S h e e t 2 ) C O L L E G E A V E N U E N O R T H 66 66 2 0 2 0 2 0 2 0 2 0 ALLEY ALLEY 20 20 A L L E Y 1 2 3 6 7 BLOCK 10 LOT 1 BLOCK 2 8 LOT 1 BLOCK 1 COMMON ELEMENT LAPLA Y E T T E A D D I T I O N COMMON INTEREST COMMUNITY NUMBER 97 CONDOMINIUM MILL STREAM SHOPS & LOFTS S 8527’ 08" W 155.31 S 7309’ 1 7 " W 1 2 0 . 0 0 N 1 7 0 9 ’ 2 5 " W 1 3 8 . 3 0 S 0 3 0 3 ’ 2 7 " E 6 0 . 7 9 N 8527’ 08" E 132.00 Concrete Walk 4 BLOCK 10 S 0728’ 07" E 6.04 C O M M O N E L E M E N T COMMO N E L E M E N T (Sheets 1 , 2 , & 3 ) Walk-in Refrigeratio n 1 S t o r y b u i l d i n g Pergola ASH STR E E T E A S T 6 6 Paved Driveway P a v e d D r i v e w a y C o n c r e t e S i d e w a l k C o n c r e t e S i d e w a l k S 1 6 5 0 ’ 1 3 " E 5 . 4 7 10.51 39.85 Line A Southerly line of the northerly 64.00 feet of Lots 1, 2, & 3 North line of Lot 3 Northeast corner of Lot 3 N 7320’ 1 6 " E 1 7 8 . 0 6 4 . 9 3 Southerly line of the northerly 60.00 feet of Lots 1 & 2, and its easterly extension (Line B) Northerly l i n e s o f L o t s 1 , 2 , & 3 S 1 7 0 9 ’ 2 5 " E 6 0 . 0 0 S 0 7 2 8 ’ 0 7 " E 6 4 . 0 7 ORIGINAL TOWNSITE OF ST. JOSEPH East line of Lot 3 Point of intersection of a line distant 64.00 feet southerly of, as measured at a right angle to and parallel with, the northerly line of said Lot 3, and the east line of Lot 3 S 1 6 5 0 ’ 1 3 " E 5 . 3 0 54.11 104.28 9.16 Westerly line of Block 10 Most westerly corner of Block 10 6 foot wide Drainage & Utility Easement per BAYOU ALLEY FLATS West Quarter corner of Sec. 10, Twp. 124, Rng. 29 East Quarter corner of Sec. 10, Twp. 124, Rng. 29 East-west quarter section line 6 6 S 1 7 0 9 ’ 2 5 " E 1 7 8 . 3 2 S U R V E Y L I N E Paved Parking Lot Paved Parking Lot Paved Parking Lot Concrete Pad Paved Parking Lot Paved A l l e y w a y Paved Alleyway S 0 3 0 3 ’ 2 7 " E 8 0 . 0 0 BAYOU ALLEY FLATS STSTSTSTSTSTSTSTSTSTSTSTSTSTST C o n c r e t e A p r o n STST 873.32 4375.37 N 8918’ 39" E 5248.69 S 1 6 5 0 ’ 1 3 " E 4 . 9 9 Unstriped Paved Parking S p a c e s STSTSTSTSTSTSTSTSTSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSS COSTSSSSSS Gas mete r s o n b u i l d i n g Iron bar fence C o n d e n s i n g U n i t s ( R o o f ) LCE 104 L C E 1 0 4 L C E 1 0 1 L C E 1 0 2 L C E 1 0 3 3 S t o r y B u i l d i n g U N I T S 1 0 1 - 1 0 4 ( S h e e t 2 ) U N I T S 2 0 1 - 2 0 7 ( S h e e t 3 ) U N I T S 3 0 1 - 3 0 7 ( S h e e t 3 ) U N I T 1 0 5 ( S h e e t 2 ) 1 S t o r y G a r a g e U N I T S G 1 - G 7 ( S h e e t 2 ) BENCHMARK: Rim of sanitary manhole (south edge) Elevation= 1094.72 (NAVD 88) COMMO N E L E M E N T Bollards C o n c r e t e A p r o n C o n c r e t e S i d e w a l k 192.4 1 9 . 5 8.8 8.4 7 . 3 18.0 2 4 . 5 74.3 8 1 . 7 21.5 23.8 4 . 0 37.1 1 9 . 5 4.9 81.6 81.5 4 . 0 13.6 5 . 9 23.0 9 . 0 19.5 2 3 . 5 4 . 0 27.1 C o n c r e t e P a t i o C o n c r e t e P a t i o s Recyclin g 3 Story B u i l d i n g COMMO N E L E M E N T (Sheets 2 & 3 ) Recyclin g & Trash En c l . Lawn Lawn Encroachment Agreement per Doc. No. S e r v e s U n i t 1 0 4 Transform e r U t i l i t y c a b i n e t L C E 1 0 4 , P a r k i n g s t a l l 2 . 5 9.0 1 9 . 0 2 . 5 3 Story B u i l d i n g Common E l e m e n t (Sheets 2 & 3 ) 275.9 C o n c r e t e W a l k LCE 105, Patio, Wal k , & Refrigera t i o n X 0 10 20 SCALE IN FEET 1ST FLOOR LCELIMITED COMMON ELEMENT FLOOR ELEVATION CEILING ELEVATION F.E. C.E. DRAFT KRAMER LEAS DELEO SURVEYING ENGINEERING PLANNING BRAINERD ST. CLOUD 6/10/2026 Sheet 2 of 3 Sheets UNIT 10 1 UNIT 10 2 UNIT 10 3 UNIT G1 UNIT G2 UNIT G 3 UNIT G 4 UNIT G5 UNIT G6 UNIT G 7 U N I T G 8 U N I T G 9 U N I T G 1 0 U N I T G 1 1 U N I T G 1 2 U N I T G 1 3 U N I T G 1 4 UNIT 10 4 L C E 1 0 3 , P A T I O L C E 1 0 2 , P A T I O L C E 1 0 1 , P A T I O LCE 102 & 1 0 3 , ENTRY W A Y 46.90 1 5 . 2 3 46.90 1 5 . 2 3 46.90 1 4 . 3 1 31.48 2 . 7 2 15.42 1 1 . 5 9 31.48 1 4 . 3 1 46.90 1 1 . 5 9 15.42 2 . 7 2 46.90 7 0 . 1 3 7. 5 5 35.65 0 . 2 3 6.02 6 . 7 0 0.11 6 8 . 5 3 21.90 1 1 . 1 1 21.90 1 1 . 1 1 1 1 . 0 0 21.90 1 1 . 0 0 1 1 . 0 0 21.90 1 1 . 0 0 1 1 . 0 0 21.90 1 1 . 0 0 1 1 . 0 0 21.90 1 1 . 0 0 1 1 . 0 0 21.90 1 1 . 0 0 1 1 . 1 1 21.90 1 1 . 1 1 10.70 2 1 . 9 0 10.70 2 1 . 9 0 11.00 2 1 . 9 0 11.00 11.00 2 1 . 9 0 11.00 11.00 2 1 . 9 0 11.00 11.00 2 1 . 9 0 11.00 11.00 2 1 . 9 0 11.00 11.11 2 1 . 9 0 11.11 COMMO N E L E M E N T Stairs Up L a n d i n g To 2nd F l o o r Stairs Up L a n d i n g To 2nd Floor 0 . 7 5 0 . 7 7 0 . 7 7 0 . 7 7 5 . 0 0 9.73 1 6 . 1 0 9.73 1 6 . 1 0 1 5 . 1 1 1 5 . 1 1 9.73 9.73 1 5 . 0 2 1 5 . 0 2 7 1 . 1 2 8 6 . 5 0 9 . 6 0 51.47 0.39 0.39 0.39 0.39 0 . 3 9 0 . 3 9 0.75 0.75 0.75 0.75 0 . 7 5 0 . 7 5 0 . 7 5 0 . 3 9 0 . 3 9 0 . 3 9 0 . 3 9 0.39 0 . 0 8 10.67 6.82 6.82 6 . 1 5 S 1 6 5 0 ’ 1 3 " E 1 1 7 . 3 5 N 1 6 5 0 ’ 1 3 " W 1 1 5 . 4 5 S 7309’ 4 7 " W 4 8 . 4 0 N 7309’ 4 7 " E 3 5 . 9 6 N 7309’ 4 7 " E 2 8 . 6 7 N 1 6 5 0 ’ 1 3 " W 1 7 . 3 3 S 7309’ 4 7 " W 2 2 . 0 1 S 6 1 5 0 ’ 1 3 " E 8. 1 7 9 . 6 5 S 1 6 5 0 ’ 1 3 " E 0 . 3 9 0 . 3 9 S 7309’ 4 7 " W 2 6 . 7 0 S 1 6 5 0 ’ 1 3 " E 1 4 . 8 6 N 7309’ 4 7 " E 7 7 . 5 8 S 1 6 5 0 ’ 1 3 " E 2 2 . 6 7 S 7309’ 4 7 " W 7 7 . 5 8 C O M M O N E L E M E N T F.E. = 10 9 5 . 5 C.E. = 11 0 8 . 0 F.E. = 10 9 5 . 5 C.E. = 11 0 8 . 0 F.E. = 10 9 5 . 5 C.E. = 11 0 8 . 0 UNITS G8-G14 F.E. = 1095.4 C.E. = 1103.4 UNITS G1-G7 F.E. = 1095.4 C.E. = 1103.4 6 . 3 5 5.72 0 . 6 9 0.39 0.08 See Inset A (Sheet 2) See Inset A (Sheet 2) 4 . 6 7 10.00 10.00 4 . 6 7 COMMO N E L E M E N T N 7309’ 4 7 " E 2 6 . 7 0 N 1 6 5 0 ’ 1 3 " W 1 4 . 8 6 N 1 6 5 0 ’ 1 3 " W 2 2 . 6 7 U N I T G 8 N 7309’ 4 7 " E 2 1 . 6 7 S 1 6 5 0 ’ 1 3 " E 1 0 . 0 0 S 7309’ 4 7 " W 2 1 . 6 7 N 1 6 5 0 ’ 1 3 " W 1 0 . 0 0 N 1 6 4 5 ’ 4 0 " W 3 0 . 8 4 N 7720’ 31 " E 2 3 . 2 3 S 1 3 0 1 ’ 0 4 " E 3 6 . 2 9 S 8527’ 08" W 37.85 N 7659’ 1 4 " E 8.62 S 8637’ 56" E 12.75 N 123 9 ’ 2 9 " W 1.00 N 7604’ 1 4 " E 2 2 . 0 4 S 1 2 5 5 ’ 4 9 " E 1 2 . 2 5 S 1 2 5 5 ’ 4 9 " E 1 9 . 7 5 S 7604’ 1 4 " W 1 8 . 0 4 N 1 2 5 5 ’ 4 9 " W 3 2 . 0 0 S 7604’ 14" W 4.00 Building Walk-in Ref r i g e r a t i o n S 730 9 ’ 1 7 " W 7.66 4.53 13.66 2 8 . 9 4 1 8 . 6 9 r = 9 4 0 6 ’ 1 1 " L= 4 . 9 3 R = 3 . 0 0 Not to Scale 11.00 0 . 0 8 Gap betw e e n exterior w a l l s 0.67 0.39 G a p b e t w e e n e x t e r i o r w a l l s 0.08 S 1 6 5 0 ’ 1 3 " E 1 4 . 8 6 S 7309’ 4 7 " W 2 6 . 7 0 S 7309’ 4 7 " W 22.67 N 7309’ 4 7 " E 22.67 S 1 6 5 0 ’ 1 3 " E 7 8 . 0 0 N 1 6 5 0 ’ 1 3 " W 7 8 . 0 0 Stairway Utility Ro o m F.E. = 10 9 5 . 5 C.E. = 11 0 8 . 0 INSET A 0.60 0 . 6 0 0 . 6 0 LCE 104 , P A T I O L C E 1 0 4 , P A T I O COMMO N E L E M E N T Elevator Shaft Elevator Equipme n t Room U t i l i t y C l o s e t Utility Closet COMMO N E L E M E N T LCE 104 & 105 Recycling LCE 104 & 1 0 5 , RECYC L I N G COMMO N E L E M E N T COMMON ELEMENT Encroachment Agreement per Doc. No. Doorway t o U t i l i t y C l o s e t UNIT 105 LCE 105, Patio, Walk, & Refrigeration Patio C o n c r e t e W a l k 1 0 . 0 2 1 . 2 3 . 0 3 . 0 D o o r w a y D o o r w a y 0 10 20 SCALE IN FEET 2ND FLOOR 3RD FLOOR 0 10 20 SCALE IN FEET LCELIMITED COMMON ELEMENT FLOOR ELEVATION CEILING ELEVATION F.E. C.E. DRAFT KRAMER LEAS DELEO SURVEYING ENGINEERING PLANNING BRAINERD ST. CLOUD 6/10/2026 Sheet 3 of 3 Sheets C O M M O N E L E M E N T COMMO N E L E M E N T UNIT 20 1 UNIT 20 2 UNIT 20 3 UNIT 20 4 UNIT 20 5 UNIT 20 6 UNIT 20 7 L C E 2 0 1 , B A L C O N Y L C E 2 0 2 , B A L C O N Y L C E 2 0 3 , B A L C O N Y L C E 2 0 4 , B A L C O N Y L C E 2 0 5 , B A L C O N Y LCE 202 & 2 0 3 , ENTRY W A Y LCE 207 , HVAC LCE 206 , HVAC LCE 205 , HVAC LCE 204 , HVAC LCE 203 , HVAC LCE 202 , HVAC LCE 201 , HVAC Stairs Up 0 . 0 8 To 3rd Fl o o r 21.67 26.70 26.70 1 4 . 8 6 1 4 . 8 6 1 0 . 0 0 21.67 1 0 . 0 0 0 . 0 8 COMMO N E L E M E N T To 3rd Fl o o r Stairs Up L a n d i n g L a n d i n g 46.90 1 5 . 2 3 46.90 1 5 . 2 3 46.90 1 4 . 3 1 31.48 2 . 7 2 15.42 1 1 . 5 9 31.48 1 4 . 3 1 46.90 1 1 . 5 9 15.42 2 . 7 2 46.90 1 4 . 3 1 31.48 15.42 1 1 . 5 9 31.48 1 4 . 3 1 46.90 1 1 . 5 9 15.42 46.90 2 6 . 2 3 22.19 1 0 . 2 9 9.94 1 . 2 1 14.77 1 7 . 1 5 22.96 1 0 . 2 9 8.40 1 . 2 1 15.54 1 4 . 6 5 0.22 1 0 . 8 3 5.69 1 . 9 0 40.99 1 8 . 3 0 6.82 6.82 1 5 . 9 9 9.73 1 1 . 2 6 3 . 9 6 1 5 . 2 1 6.82 1 1 . 2 4 1 5 . 0 2 9.73 1 1 . 0 6 1 4 . 9 8 6.82 3 . 9 0 1 1 . 1 9 1 5 . 0 8 9.73 1 1 . 7 0 2 7 . 4 0 51.47 44.66 1 5 . 0 0 2 9 . 0 3 51.31 1 1 5 . 4 5 7.22 9 0 . 5 0 3.45 1 0 . 0 8 4.95 5.72 2 . 7 2 2 . 7 2 0 . 6 0 0.60 0 . 6 0 5 . 0 0 0 . 6 0 0.60 0 . 6 0 5 . 0 0 LCE 204 & 2 0 5 , ENTRY W A Y F.E. = 11 0 9 . 5 C.E. = 11 1 8 . 5 F.E. = 11 0 9 . 5 C.E. = 11 1 8 . 5 F.E. = 11 0 9 . 5 C.E. = 11 1 8 . 5 F.E. = 11 0 9 . 5 C.E. = 11 1 8 . 5 F.E. = 11 0 9 . 5 C.E. = 11 1 8 . 5 F.E. = 11 0 9 . 5 C.E. = 11 1 8 . 5 F.E. = 11 0 9 . 5 C.E. = 11 1 8 . 5 22.01 4 . 5 5 2.92 1 1 . 2 0 2.92 2.92 2.92 2.92 2.92 2.92 1 1 . 1 0 2.92 4 . 2 0 2.92 2.92 4 . 4 3 44.66 0.2 4 0.4 0 0.75 0.75 0 . 7 5 0 . 7 5 0 . 7 5 0 . 7 5 0.75 LCE 207 , B A L C O N Y 0.75 0 . 7 7 0 . 7 7 0 . 7 7 0 . 7 7 0 . 7 7 0 . 7 7 0.77 0 . 7 7 0 . 4 2 0 . 4 2 3 . 8 5 3 . 8 5 Storage COMMO N E L E M E N T Elevator Shaft Utility Ro o m (betwee n f l o o r s 2 & 3) 1 7 . 3 3 L C E 2 0 6 , B A L C O N Y 28.67 9 . 6 0 9 . 6 5 Fitness R o o m Not to Scale LCE, HVAC UNIT LCE, BALCONY 0.42 0.75 0 . 4 2 0 . 4 2 INSET B (Typical wall width) LCE 302 & 3 0 3 , ENTRY W A Y LCE 304 & 3 0 5 , ENTRY W A Y LCE 305 , HVAC C O M M O N E L E M E N T COMMO N E L E M E N T UNIT 30 1 UNIT 30 2 UNIT 30 3 UNIT 30 4 UNIT 30 5 UNIT 30 6 UNIT 30 7 LCE 301 , HVAC LCE 302 , HVAC LCE 303 , HVAC LCE 304 , HVAC LCE 306 , HVAC LCE 307 , HVAC L C E 3 0 1 , B A L C O N Y L C E 3 0 2 , B A L C O N Y L C E 3 0 3 , B A L C O N Y L C E 3 0 4 , B A L C O N Y L C E 3 0 5 , B A L C O N Y F.E. = 11 1 9 . 8 C.E. = 11 2 8 . 8 F.E. = 11 1 9 . 8 C.E. = 11 2 8 . 8 F.E. = 11 1 9 . 8 C.E. = 11 2 8 . 8 F.E. = 11 1 9 . 8 C.E. = 11 2 8 . 8 F.E. = 11 1 9 . 8 C.E. = 11 2 8 . 8 F.E. = 11 1 9 . 8 C.E. = 11 2 8 . 8 F.E. = 11 1 9 . 8 C.E. = 11 2 8 . 8 0 . 0 8 Stairs Do w n 21.67 26.70 26.70 1 4 . 8 6 1 4 . 8 6 1 0 . 0 0 21.67 1 0 . 0 0 0 . 0 8 Stairs Do w n L a n d i n g L a n d i n g 46.90 1 5 . 2 3 46.90 1 5 . 2 3 46.90 1 4 . 3 1 31.48 2 . 7 2 15.42 1 1 . 5 9 31.48 1 4 . 3 1 46.90 1 1 . 5 9 15.42 2 . 7 2 46.90 1 4 . 3 1 31.48 15.42 1 1 . 5 9 31.48 1 4 . 3 1 46.90 1 1 . 5 9 15.42 46.90 2 6 . 2 3 22.19 1 0 . 2 9 9.94 1 . 2 1 14.77 1 7 . 1 5 22.96 1 0 . 2 9 8.40 1 . 2 1 15.54 1 4 . 6 5 0.22 1 0 . 8 3 5.69 1 . 9 0 40.99 1 8 . 3 0 6.82 6.82 1 5 . 9 9 9.73 1 1 . 2 6 3 . 9 6 1 5 . 2 1 6.82 1 1 . 2 4 1 5 . 0 2 9.73 1 1 . 0 6 1 4 . 9 8 6.82 3 . 9 0 1 1 . 1 9 1 5 . 0 8 9.73 1 1 . 7 0 2 7 . 4 0 51.47 44.66 1 5 . 0 0 2 9 . 0 3 51.31 1 1 5 . 4 5 7.22 9 0 . 5 0 3.45 1 0 . 0 8 4.95 5.72 2 . 7 2 2 . 7 2 0 . 6 0 0.60 0 . 6 0 5 . 0 0 0 . 6 0 0.60 0 . 6 0 5 . 0 0 22.01 4 . 5 5 2.92 1 1 . 2 0 2.92 2.92 2.92 2.92 2.92 2.92 1 1 . 1 0 2.92 4 . 2 0 2.92 2.92 4 . 4 3 44.66 0.2 4 0.4 0 0.75 0.75 0 . 7 5 0 . 7 5 0 . 7 5 0 . 7 5 0.75 0.75 0 . 7 7 0 . 7 7 0 . 7 7 0 . 7 7 0 . 7 7 0 . 7 7 0.77 0 . 7 7 0 . 4 2 0 . 4 2 3 . 8 5 3 . 8 5 To 2nd F l o o r To 2nd F l o o r LCE 307 , B A L C O N Y L C E 3 0 6 , B A L C O N Y COMMO N E L E M E N T Storage Elevator Shaft Utility Ro o m (betwee n f l o o r s 2 & 3) 1 7 . 3 3 28.67 9 . 6 5 9 . 6 0 COMMO N E L E M E N T Patio Not to Scale LCE, HVAC UNIT LCE, BALCONY 0.42 0.75 0 . 4 2 0 . 4 2 INSET B (Typical wall width) RESOLUTION 2026-032 RESOLUTION APPROVING A COMMON INTEREST COMMUNITY PLAT FOR BAYOU ALLEY LOFTS AND DECLARATION WHEREAS, Bayou Alley Lofts, LLC hereafter referred to as “applicant” and “owner” have properly applied for a Common Interest Community Plat (CIC); and WHEREAS, the subject property is legally described in Exhibit A; and WHEREAS, the CIC plat will subdivide the property into individually owned private units and establish common areas, including the parking lot and walkways, which shall be maintained and managed by a private Association; and NOW THERFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ST. JOSEPH, MINNESOTA: That the “Common Interest Community Number 122 A Condominium Bayou Alley Lofts” be approved with the following conditions: 1. This CIC plat and CIC Number 122 Condominium Bayou Alley Lofts Declaration shall be recorded at Stearns County recorder’s office. Whereupon said resolution was declared duly passed and adopted by the St. Joseph City Council this 15th day of June, 2026. CITY OF ST. JOSEPH By Adam Scepaniak, Mayor ATTEST By David Murphy, City Administrator Document drafted by: City of St. Joseph 75 Callaway St E St. Joseph, MN 56374 Exhibit A Existing Legal Description Lot 001, Block 001 Bayou Alley Flats Proposed Legal Description Units 101-105, Units G1-G14, Units 201-207, Units 301-307, Common Interest Community Number 122, a Condominium Bayou Alley Lofts, Stearns County, Minnesota 1 4916-4537-0263, v. 10 COMMON INTEREST COMMUNITY NUMBER 122 CONDOMINIUM BAYOU ALLEY LOFTS DECLARATION Bayou Alley Flats LLC, a Minnesota limited liability company (“Declarant”), makes this Declaration to create Bayou Alley Lofts, a condominium, pursuant to Minnesota Statutes Chapter 515B, known as the Minnesota Common Interest Community Act (the “Act”) effective as of ____________, 2026 (the “Effective Date”). RECITALS A.Declarant owns the real property located in the City of St. Joseph, Stearns County, Minnesota, legally described in the attached Exhibit A together with all improvements on the property and any appurtenant utility or other easements (collectively the “Property”). B.Declarant desires to establish the Property as a condominium under the Act and to subject the Property to this Declaration to ensure the Property’s architectural and aesthetic character, structural quality, and amenities, and to provide for the maintenance of Common Elements and portions of the Units. C.The Property and one or more Buildings located on the Property have been wholly or partially occupied for residential and commercial purposes prior to the execution of this Declaration. This condominium is therefore a conversion of existing improvements and not new construction. D.Declarant has established Bayou Alley Flats Condominium Association, a Minnesota non-profit corporation (the “Association”) to govern, manage and maintain the Property and act as the association of unit owners required by the Act. E.The Property and the Association are subject to the provisions of the Act. The Declarant declares that all of the Property shall be a condominium known as Bayou Alley Flats, and the Property shall be owned, encumbered, used, operated, sold, conveyed and occupied subject to all of the easements, restrictions, conditions, covenants, charges and liens set forth in this Declaration, all of which shall run with title to the Property and shall be binding on all parties having any right, title or interest in the Property, or any part of it, and their heirs, successors and assigns. 2 4916-4537-0263, v. 10 SECTION 1 DEFINITIONS The terms and phrases used in this Declaration shall have the meanings ascribed to them in the Act, except that the following words, when used in the Governing Documents will have the following meanings (unless the context clearly indicates otherwise): 1.1 “Act” or “MCIOA” means Minnesota Statutes Chapter 515B, the Minnesota Common Interest Community Act, as amended. 1.2 “Architectural Review Committee” or “ARC” means the Association’s committee appointed by the Board created to establish and enforce architectural standards for the construction and modification of Units and Improvements thereon to maintain general conformity with the Property’s architectural character and use as planned and developed by the Declarant. If a committee has not been appointed, the Board shall act as the Architectural Review Committee. 1.3 “Association” means Bayou Condominium Association, a Minnesota nonprofit corporation created pursuant to Minnesota Statutes Chapter 317A and Section 515B.3-101 of the Act, whose members consist of all Owners. 1.4 “Association Owned Fixtures” means all fixtures attached to Common Elements owned by the Association as part of the operation of the Common Elements. Association Owned Fixtures specifically includes all solar equipment located on the roof and related facilities. 1.5 “Board” or “Board of Directors” means the Association’s Board of Directors as provided for in the Bylaws. 1.6 “Building(s)” means all structures (including all fixtures and improvements) located on and comprising a part of the Property in which the Units are located as depicted on the CIC Plat, including any building added to the Property. 1.7 “Bylaws” means the bylaws governing the Association’s operation, as they may be amended. 1.8 “City” means the City of St. Joseph, Minnesota. 1.9 “Commercial Unit” means a Unit designated for business, commercial, office or retail use. The initial Commercial Units are Units 104 and 105 as designated on the CIC Plat. 1.10 "Common Elements" means all portions of the Property, or interest therein, and all personal property now or later owned by the Association, which is not 3 4916-4537-0263, v. 10 included within the Units, but which is intended for the common use and enjoyment of the Owners and Occupants and their guests and invitees. The initial Common Elements are as shown on the CIC Plat. 1.11 “Common Expenses” means and include all expenditures made or liabilities incurred by or on the Association’s behalf and incident to its administration, management, operation, repair, and replacement, including without limitation, any common real estate taxes, property insurance, allocations to reserves and those items specifically identified as Common Expenses in the Governing Documents. 1.12 “Declarant” means Bayou Alley Flats LLC, a Minnesota limited liability company, and its successors or assigns. 1.13 “Declarant Control” means the period of time commencing on the date of creation of this condominium and continuing until the earliest of: (i) Declarant’s voluntary surrender of control by giving written notice pursuant to the Act, (ii) conveyance of 75% of the total number of Units authorized to be included in the Property to Owners other than Declarant; or (iii) the date 3 years following the date of the first conveyance of a Unit to an Owner other than Declarant. 1.14 “Dwelling” means a part of a Building designed and intended for use and occupancy as a single-family residence and located within a Unit’s boundaries. 1.15 “Eligible Mortgagee” means any Person owning a mortgage on any Unit, which mortgage is first in priority to all other mortgages that encumber the Unit, that has requested, in writing, notification from the Association about any proposed action which requires approval by the Eligible Mortgagees. 1.16 “Garage Unit(s)” means those Units which are specifically designed for automobile parking purposes (or storage in the case of Units G1 and G2 which may be used in conjunction with the Commercial Units). The initial Garage Units are located on the Property as shown on the CIC Plat designated with a “G” before the Unit number and include Units G1 through G14. A Garage Unit may only be owned by a Unit Owner. 1.17 “Governing Documents” means this Declaration, the Association’s Articles of Incorporation, Bylaws and Rules and Regulations, as they may be amended, all of which will govern the Property’s use and operation. 1.18 “Governmental Regulations” means all federal, state, county or municipal laws, rules, ordinances, regulations, directives, orders, and requirements, including but not limited to, all City ordinances and regulations now in force or which may later be in force which are applicable to the Property, including without limitation the 4 4916-4537-0263, v. 10 TIF Development Contract, the PUD Agreement and any other land use specific approvals regarding the Property. 1.19 “Improvement” means any physical structure, improvement or alteration of any kind, including without limitation, any patio, deck, porch, balcony, building, addition, wall, fence, sign, awning, display, painting or color change, attachment, enclosure, window, exterior door, screening, utilities system, communications system, driveway, sidewalk, planting, landscaping, grading, topography change or any other type of exterior structure or physical improvement, and any additions, changes or alterations thereto, for or on a Unit or Dwelling which is visible from the exterior of the Unit or Dwelling. 1.20 "Limited Common Element" means a portion of the Common Elements allocated by this Declaration, the CIC Plat, or by operation of Section 515B.2-109(c) or (d) of the Act for the exclusive use of one or more but fewer than all of the Units. 1.21 “Member” means all Persons who are members of the Association by virtue of being Owners. The words “Owner” and “Member” may be used interchangeably in the Governing Documents. 1.22 “Occupant” means any Person or Persons, other than an Owner, in possession of a Unit or residing in a Dwelling. Occupant includes tenants in residential and commercial Units. 1.23 “Owner” means a Person who owns a Unit, excluding contract for deed vendors, guests, lessees, mortgagees, and other secured parties. The term “Owner” includes, without limitation, contract for deed vendees and life estate holders. 1.24 “Person” means a natural individual, corporation, limited liability company, partnership, trustee, institution of higher education or other legal entity capable of holding title to real property. 1.25 “Planned Unite Development Agreement” or “PUD Agreement” means that agreement between Bayou Alley Flats LLC and the City of St. Joseph dated December 27, 2017 and amended on June 16, 2025. 1.26 “Plans” means plans and specifications showing the nature, kind, shape, height, color, materials, and location of Improvements. 1.27 "Plat” or “CIC Plat” means the common interest community plat as described in the Act concerning the Property, including any supplemental plats. The CIC Plat for this Property is being recorded simultaneously with, and as a part of, this Declaration. 5 4916-4537-0263, v. 10 1.28 “Property” means all of the real property subject to this Declaration and legally described in the attached Exhibit A, including the Dwellings and all improvements located on it now or in the future. 1.29 “Residential Unit” means a Unit which is designated as separate residential living units. The initial Residential Units include all Units except Units 104, 105, and Garage Units. 1.30 “Rules and Regulations” means the Association’s rules and regulations as approved by the Board from time to time. 1.31 “TIF Development Contract” means the Development Agreement by and between the City of St. Joseph, Minnesota and Bayou Alley Flats, LLC dated the 10th day of November 2014, as amended including on the 17th day of April 2017. 1.32 “TIF Documents” means the TIF Development Contract and the TIF Note as defined herein. 1.33 “TIF Note” means the Tax Increment Revenue Note issued in connection with the TIF Development Contract as may be assigned from time to time. 1.34 “Unit” means a portion of the Property designated for separate ownership, the boundaries of which are shown on the CIC Plat and identified by its Unit number as shown on the Plat, including all improvements on it but excluding the Common Elements. The term “Unit” shall include the Commercial Units, the Residential Units, and the Garage Units. SECTION 2 UNIT DESCRIPTIONS AND EASEMENTS 2.1 Units. This CIC initially consists of 33 total Units on the Property designated as follows: 2 Commercial Units and 17 Residential Units, and 14 Garage Units as shown on the Plat. The maximum number of Units is 33. The unit identifier of each Unit is as shown on the Plat. Notwithstanding the above, Unit 103, a Residential Unit at the time of this Declaration may be converted to a Commercial Unit upon agreement of the Owner of Unit 103 and the Association; provided, however, that such conversion may only be undertaken if such does not negatively impact eligibility of financing Residential Units (whether existing or new financing) and is not in violation of the TIF Development Contract or Governmental Regulations. 2.2 Use of Units. Subject to the provisions of Section 10.3 and the terms of the Governing Documents, all of the Residential Units shall be used and occupied exclusively for 6 4916-4537-0263, v. 10 residential use by such Unit’s Owner(s), Occupants, families, tenants and social guests of such Owner(s). The Commercial Units shall be used and occupied only for business or commercial purposes by such Unit’s Owner(s), Occupants and the tenants, customers, guests, invitees and employees of such Owner(s) or Occupant(s), in accordance with and subject to all applicable Governmental Regulations, including without limitation all City zoning, licensing and other rules, regulations and ordinances, the PUD Agreement, the Development Agreement, and the restrictions provided in the Governing Documents. Subject to the Governing Documents and Rules and Regulations, the Garage Units shall be used and occupied only for the parking of authorized boats, motorcycles, automobiles and motorized vehicles, usual and customary storage of commercial and personal property and incidental and related uses. Notwithstanding the above, Garage Units G1 and G2 may also be used for cold storage and ancillary restaurant uses related to Unit 104 subject to limitations set out in Section 8.30 of this Declaration. 2.3 Unit Boundaries. Each Unit’s boundaries are as shown on the CIC Plat. To the extent not inconsistent with the CIC Plat, each Unit’s walls, floors, and ceilings as described in further detail in Section 515B.2-102 of the Act. Units are bounded by the interior unfinished surfaces of perimeter walls, floors, and ceilings unless otherwise shown on the Plat. All paneling, tiles, wallpaper, paint, floor covering, and any other finishing materials applied to the interior surfaces of the perimeter walls, floors or ceilings, are a part of the Unit, and all other portions of the walls, floors, or ceilings, including perimeter doors and windows, and their frames, are a part of the Common Elements. The boundaries between adjoining Units may be relocated in accordance with the Act; provided, however, that no Unit may be so modified by relocation of the boundaries that it no longer remains practicably usable for their use as described in this Declaration. 2.4 Recorded Easements. The Property will be subject to drainage and utility easements shown on the CIC Plat, the terms and conditions of the TIF Development Contract, land use conditions and restrictions of the City of St. Joseph and such other easements of record or as otherwise shown on the CIC Plat or described in this Declaration. 2.5 Association’s Easement for Maintenance, Repair, Replacement and Reconstruction. Each Unit, and the rights of Owners and Occupants, will be subject to an exclusive, appurtenant easement in favor of the Association on, in and over the Unit for the purposes of maintenance, repair, replacement and reconstruction of the Units and utilities serving the Units, to the extent necessary to fulfill the Association’s obligations under the Governing Documents, or for making emergency repairs necessary to prevent damage to any Unit or the Common Elements. 2.6 Use and Enjoyment Easements over Common Elements. Each Unit and its respective Owner(s) shall be subject to and the beneficiary of a perpetual, non-exclusive, appurtenant easement for the use and enjoyment on, over, across and upon the Common Elements subject to any restrictions provided in or authorized by the Governing Documents. Each Owner shall have the nonexclusive right to use the Common Elements in common with all other Owners as may be required for the purposes of access, ingress to and egress from, use, 7 4916-4537-0263, v. 10 occupancy and enjoyment of each Owner’s Unit. Each Owner shall have the right to the exclusive use and possession of the Limited Common Elements contiguous to or otherwise assigned to the Owner’s Unit unless such Limited Common Elements are intended to serve more than one Unit in which case such respective Owners shall have a shared exclusive easement for the use of such Limited Common Elements. Notwithstanding anything herein to the contrary and for purposes of clarity, the Association may regulate and restrict access to Common Elements, including elevator shafts, utility rooms and access panels, trash facilities, solar panels, roofs, fitness rooms, storage areas, and similar facilities. 2.7 Access Easements. Each Unit and its respective Owner(s) shall be subject to and the beneficiary of a perpetual, non-exclusive, appurtenant easement in common with all other Owners for access, ingress and egress to and from the Unit to a public street on, over, across and upon those portions of the Common Elements paved for use as streets, roads, driveways or sidewalks as shown on the Plat, subject to any restrictions set forth in the Governing Documents or the Rules and Regulations. Garage Unit Owners of Garage Units G-1 and G-2 shall be burdened by and benefitted by easements for access to and from their Garage Unit through the common door. Garage Unit Owners of Garage Units G-3 through G-7 shall be burdened by and benefitted by easements for access to and from their Garage Unit through the common door. 2.8 Public Health and Safety Easements. There shall be non-exclusive easements in favor of applicable governmental authorities upon and across the Property and each Unit for reasonable access to perform such duties related to law enforcement, fire protection, life safety, health and sanitation as reasonably required from time to time. 2.9 Unit 104 Easement for Rooftop Equipment. Commercial Unit 104 shall have a non-exclusive easement to maintain, repair, and replace rooftop equipment related to its commercial use on the Building containing Garage Units G1 through G7. 2.10 Encroachment Easements. The existing physical boundaries of a Unit, or of a Unit reconstructed in substantial accordance with the description contained in this Declaration, are its legal boundaries, regardless of vertical or lateral movement of the Building or minor variances due to shifting or settling. If any part of any Unit, building or Improvement encroaches upon any part of the Common Elements or upon any other part of another Unit, or if any part of the Common Elements encroach upon any part of any Unit, as a result of the construction, reconstruction, repair, alteration, improvement, shifting, settlement or movement of any part of the Property, or if by reason of the design or construction of utility systems and ventilation systems, any main, pipe, duct or conduit serving more than one Unit encroaches upon any part of any Unit, a valid appurtenant easement for such encroachment, and for the maintenance thereof, and for the use, enjoyment and habitation of the Common Elements shall exist for the benefit of such Units, and the Unit Owners, and the Common Elements, as the case may be; provided, that with respect to future Improvements or alterations, no easement shall exist unless expressly agreed to, and the proposed Improvements constructed, as required by this Declaration. Such easements shall continue for as long as the encroachment exists and shall not affect the marketability of title. The Building containing Unit 105 currently encroaches into the public 8 4916-4537-0263, v. 10 alley and is subject to an encroachment agreement with the City of St. Joseph dated _________ and recorded in the office of the Stearns County Recorder as Document No. _______________. 2.11 Utility Easements. The Property shall be subject to non-exclusive, appurtenant easements in favor of all public utility companies, other utility providers and the Association for the installation, maintenance, repair, and replacement of all utilities, such as natural gas, electricity, cable television, sewer and water, electronic communications systems and services, metering and control devices and conduit, piping and other related facilities, which exist or are constructed on the Property, or which are referred to in the Plat or otherwise described in this Declaration or any other duly recorded instrument. Each Unit shall also be subject to a non- exclusive, appurtenant easement in favor of the other Units for all such utilities and services; provided, that the utilities and services shall be installed, used, maintained, and repaired in accordance with the Governing Documents and will not interfere with the use and quiet enjoyment of the Units or affect the structural or architectural integrity of the Units. The Association may grant easements for utility purposes to benefit the Property, including the right to install, maintain, repair, and replace water mains and pipes, sewer lines, gas mains, telephone, telecommunications and internet wires and equipment, electrical conduits and wires and other utility lines over, under, across, along and on any portion of the Common Elements. 2.12 Easements Through Walls. The Declarant grants easements to the Association and the Unit Owners, as the case may be, to install, lay, maintain, repair and replace any wires, pipes, flues, ducts, conduits, public utility lines, or structural components running through the walls of Units or other Common Elements whether or not such walls lie in whole or in part within the Unit boundaries. The Association shall be the beneficiary of the easements if such items are part of the Common Elements, and the Unit Owners shall be the beneficiary of the easements if such items are Limited Common Elements reserved for the exclusive use of such Units. Since each Unit forms an integral part of the Building in which it is located, the Owner of each Unit shall have a nonexclusive right and easement over the Unit with which it shares a party wall for lateral support, support and where necessary, access for maintenance and upkeep of walls, ceilings and other improvements. 2.13 Declarant’s Easements. The Declarant shall have and be the beneficiary of exclusive easements as provided in this Declaration as part of Special Declarant Rights. 2.14 Easements are Appurtenant. All easements and similar rights burdening or benefitting a Unit or any other part of the Property will be appurtenant thereto, and will be permanent, subject only to termination in accordance with the terms of the easements or the Governing Documents. Any recorded easement benefitting or burdening the Property will be construed in a manner consistent with, and not in conflict with, the easements this Declaration creates. 2.15 Impairment Prohibited. No person may materially restrict or impair any easement benefitting or burdening the Property, subject to the Declaration and the Association’s right to impose reasonable Rules and Regulations governing the Property’s use. 9 4916-4537-0263, v. 10 2.16 Shoreland. The Property does not include any shoreland, as defined in Minnesota Statutes Section 103F.205. SECTION 3 COMMON ELEMENTS 3.1 Common Elements. a.All of the Property not included within the Units constitutes the Common Elements, including all parts of the Property shown on the CIC Plat as Common Elements. The Common Elements, other than any Limited Common Elements, may, subject to the restrictions set out in this Declaration, be used in common by all Unit Owners. b.Common Elements include Association Owned Fixtures which will be the responsibility of the Association to maintain, repair, and replace such as solar panels and elevators. c.Except for specific exemptions as set out in this Declaration, the Association will have the responsibility to maintain, repair, replace, manage, and operate the Common Elements, and will assess and collect the Common Expenses for such activities from the Unit Owners. d.The Common Elements will be subject to (i) all easements referred to in the Declaration and recorded against them; (ii) the rights of Owners and Occupants in the Limited Common Elements appurtenant to their respective Units, and (iii) the Association’s right to establish reasonable Rules and Regulations governing the use of the Property and the Common Elements. e.Each Unit’s percentage of undivided interest in the Common Elements, Common Expense liabilities (except as otherwise specifically provided in this Declaration) and voting power in the Association are set forth in the attached Exhibit B. The basis for the allocation of each Unit regarding the percentage of undivided interest in the Common Elements, Common Expense liabilities and voting power shall be calculated based generally (but not exactly) on the approximate square footage of each Unit compared to the total approximate square footage of all Units. If any Unit is subdivided or combined pursuant to this Declaration and the Act, the percentage allocations shown on Exhibit B shall be reallocated among the Units based on the approximate square footage of each Unit then existing as compared to the total approximate square footage of all Units then existing on the Property, with adjustments made for Garage Units in the same manner as provided in Exhibit B, and Exhibit B will be amended and replaced to reflect the updated allocation. 10 4916-4537-0263, v. 10 3.2 Limited Common Elements. The Limited Common Elements are those parts of the Common Elements reserved for the exclusive use of the Owners and Occupants of the Units to which they are allocated, and the rights to the use and enjoyment of the Limited Common Elements are automatically conveyed with the conveyance of such Units. The Limited Common Elements are described and allocated to the Units as follows: a.Those items or areas designated as Limited Common Elements on the CIC Plat or by the Act. b.If any chute, flue, duct, wire, pipe, conduit, bearing wall, bearing column, or any other fixture serving fewer than all Units lies partially within and partially outside of the boundaries of the Unit or Units served, any portion thereof serving only that Unit or Units is a Limited Common Element allocated solely to that Unit or Units, and any portion thereof serving any portion of the Common Elements is a part of the Common Elements. c.Any improvements, such as decks, patios, terraces, porches, balconies, shutters, awnings, window boxes, doorsteps, stoops, perimeter doors and windows, and their frames, constructed as part of the original construction to serve a single Unit, and authorized replacements and modifications of them, if located wholly or partially outside of the Unit’s boundaries, are Limited Common Elements allocated exclusively to that Unit. d.Heating, ventilating or air conditioning equipment serving only a certain Unit or Units, and located wholly or partially outside the Unit or Unit’s boundaries, are allocated to the Unit or Units served by such equipment. e.Except as otherwise provided for in this Declaration, all spaces, interior partitions and other fixtures and improvements within the boundaries of a Unit are a part of the Unit. f.Some adjacent Residential Units share a stairway and entry area as shown on the Plat. The outside door to the shared stairway area should be locked at all times unless otherwise directed by the Association. SECTION 4 ASSOCIATION MEMBERSHIP: RIGHTS AND OBLIGATIONS The following provisions govern membership in the Association and the allocation of votes and Common Expenses: 4.1 Membership. Each Owner will be a member of the Association by virtue of Unit ownership. When more than one Person is an Owner of a Unit, each Owner will be a Member, but multiple ownership will not increase the voting rights allocated to a Unit and will not allow 11 4916-4537-0263, v. 10 voting rights to be divided. 4.2 Voting. Each Unit will vote in the same proportion as the Unit’s percentage of Common Expense liability set forth in Exhibit B. 4.3 Appurtenant Rights and Obligations. The ownership of a Unit includes the voting rights and Common Expense obligations described in this Declaration, and these rights and obligations (and title to the Units) may not be separated or conveyed separately. Any conveyance, encumbrance, sale, or other transfer of any allocated interest in a Unit, separate from title to the Unit will be null and void. 4.4 Voting Authority. The Owner, or a natural person designated as the Owner’s proxy, may cast the vote allocated to the Owner’s Unit. If there are multiple Owners of a Unit, only one Owner or other Person designated pursuant to the Bylaws may cast the vote allocated to the Unit. 4.5 Master Association. This common interest community is not subject to a “master association” as that term is defined in the Act. SECTION 5 ADMINISTRATION 5.1 General. The Association will be responsible for the administration, operation, and management of the Property and the Common Elements. All of the Association’s power and authority will be vested in the Board, unless the Governing Documents or the Act specifically require action or approval by the individual Owners. All references to the Association will mean the Association acting through the Board unless specifically stated otherwise. 5.2 Binding Effect of Actions. All of the Association’s actions will be binding upon all Owners and Occupants and any other Person with an interest in the Property. 5.3 Bylaws. The Bylaws will govern the Association’s operation and administration and will be binding on all Owners and Occupants. 5.4 Management. The Board may delegate to a manager or managing agent the duties of the Association’s officers and directors, but any delegation will not relieve the officers and directors of their responsibility for performing their duties. 5.5 Rules and Regulations. The Board will have authority to approve and implement appropriate and reasonable Rules and Regulations, which may not be inconsistent with the Governing Documents, regulating the Property’s use. New or amended Rules and Regulations will be effective after the Association has given reasonable notice of the new Rule or Regulation to the Owners. Rules or Regulations shall not unreasonably regulate or unfairly discriminate against any use permitted within a Unit, shall not unreasonably affect or interfere with the lawful 12 4916-4537-0263, v. 10 operation of commercial enterprises in the Commercial Units and shall be equitable and reasonable as applied to the Commercial Units. While the Association may have rules regarding the Commercial Units usage which reasonably regulates music amplification, noise, nuisance, and other matters that might cause unreasonable disturbance for occupants of Residential Units, the terms of the Governing Documents and the Association’s Rules and Regulations shall be interpreted and implemented to recognize that the Property is a mixed-use condominium with both commercial and residential uses. 5.6 Fairness Standard. The Association’s directors and officers shall have the duty to represent the interests of both Commercial Unit and Residential Unit Owners in a fair and just manner on all matters that may affect either type of Unit. In upholding their duties, the Association’s directors and officers shall be held in their decisions to the standards of good faith and reasonableness with respect to such matters, taking into account the effect, if any, of the matter on the Property as a whole but without adversely affecting any rights granted by this Declaration. This paragraph is intended to supplement and not replace those standards established in the Act or applicable corporate statutes. SECTION 6 ASSESSMENTS 6.1 Annual Assessments. The Board will determine and make assessments for Common Expenses against the Units and will do so at or prior to the conveyance of the first Unit to a purchaser and annually thereafter. The Board will establish and levy annual assessments based upon a budget approved annually by the Owners. Annual assessments must provide for contributions to a separate reserve fund which the Board deems sufficient to cover the periodic costs of the Common Elements’ maintenance, repair, and replacement as provided for in Section 515B.3-1141. Annual assessments will be payable in monthly installments or at such other time interval as the Board approves. Annual Assessments will be allocated among the Units based on the percentage of undivided interests specified in the attached Exhibit B and in accord with the Act’s default provisions, except in the following situations: a.Any Common Expense, or portion thereof, associated with the maintenance, repair, or replacement of a Limited Common Element may be assessed exclusively against the Unit or Units to which that Limited Common Element is assigned on the following basis: (i) the actual cost incurred for each Unit, if known, (ii) square footage of the area being maintained, repaired or replaced, (iii) equality, or (iv) usage or other equitable criteria the Board establishes. b.Any Common Expense, or portion thereof, benefitting only some of the Units may be assessed exclusively against the Unit or Units benefitted, on the following basis: (i) the actual cost incurred for each Unit, if known, (ii) square footage of the area being maintained, repaired or replaced as compared to the total square footage, (iii) equality, (iv) in proportion to the Unit’s percentage of Common Expense liability as set forth in Exhibit B, or (v) usage or other equitable criteria the Board establishes. By way of example, the Board may determine that specific 13 4916-4537-0263, v. 10 Common Expenses benefit only the Commercial Units, only the Residential Units, or only the Garage Units (or the building in which the Garage Units are located) and assess only those Units or Units in those buildings (for example a new roof on a building containing only Garage Units may be assessed to only those Garage Units). c.Unit 105 is located in a freestanding building separate from the main mixed-use building, as shown on the CIC Plat. Unit 105 does not share a roof, exterior walls, or building serving mechanical systems with the main buildings nor any other Unit. Notwithstanding anything herein to the contrary, Unit 105 will not be assessed for the cost of maintenance, repair, or replacement of the Buildings outside of the Building which contains Unit 105, except that Unit 105 may be assessed for Limited Common Elements attributed to Unit 105. No Unit other than Unit 105 will be assessed costs related to the maintenance, repair, or replacement of the Building containing Unit 105. All costs of maintenance, repair, replacement, restoration and insurance deductibles relating solely to Unit 105 shall be assessed exclusively to Unit 105. However, Unit 105 shall be responsible for its share of costs for any shared facility, utility, or improvement that benefits Unit 105 (for example, shared site utilities, parking areas, sidewalks, or drainage facilities), the cost thereof shall be allocated by the Board based upon benefit as provided elsewhere in this Declaration. d.The costs of insurance may be assessed in proportion to value, risk, or coverage. Specifically, as to Unit 105, the Association and the Unit Owner may agree to allow the Unit Owner to maintain its own building insurance on Unit 105 and allocate such costs of building insurance accordingly. Absent an agreement, the Association will maintain the insurance on Unit 105. The Association may require Unit 105 to maintain insurance limits similar limits and deductibles as the balance of the Association. e.The costs of utilities may be assessed in proportion to usage as determined in the discretion of the Board or as reasonably determined by the Board on the basis of equality for similarly situated Units. Units with separately metered utilities will be responsible to pay for such utilities. At the time of this Declaration, separate water lines service the Commercial Units and the Residential Units and only those Units will be responsible to share in the cost related to their respective charges. At the time of this Declaration a common area sprinkler draws from Unit 105 water. As long as this use continues the Association shall reimburse Unit 105 for such use in amounts as reasonably determined by the Association. f.Reasonable attorneys’ fees and other costs the Association incurs in connection with (i) the collection of assessments or foreclosure of a lien against a Unit Owner, or (ii) the enforcement of the Governing Documents or the Rules and Regulations against an individual Owner or Occupant, may be 14 4916-4537-0263, v. 10 assessed against the Owner and the Owner’s Unit and may include late charges, fines and interest. g.Assessments levied to pay a judgment against the Association may be levied only against Units existing at the time the judgment was entered in proportion to their Common Expense liabilities. h.If any damage to the Common Elements or another Unit is caused by the act or omission of an Owner, Occupant, or their guests, including both intentional and negligent actions, the Association may assess the costs of repairing the damage against the Unit Owner and the Owner’s Unit to the extent not covered by insurance. i.If Common Expense liabilities are reallocated for any purpose authorized by the Act, Common Expense assessments and installments thereof not yet due shall be recalculated in accordance with the reallocated Common Expense liabilities. j.In any other manner allowed by the Act or this Declaration. 6.2 Special Assessments. In addition to annual assessments, the Board may in its discretion levy special assessments against all Units according to the percentage allocations specified in the attached Exhibit B to defray the following costs: (i) any unforeseen or unbudgeted Common Expense, (ii) any reserves for maintenance, repair or replacement, and (iii) the maintenance, repair or replacement of any part of the Common Elements. Before levying a special assessment exceeding $5,000, the Board must receive the affirmative vote of Unit Owners holding at least 50% of the Association’s total voting power; provided that, the Board need not obtain such consent if repairs are required by applicable Governmental Regulations, the health or safety of the Unit Owners or because of damage to the Property. Assessments under Section 6.1 are not considered special assessments and do not require the prior approval of the Owners. 6.3 Reserves. The Association shall include in its annual budget replacement reserves as required by the Act specifically including Section 515B.3-1141. Until an annual budget is approved, reserves shall be paid based upon the budget contained in the disclosure statement. This specifically includes annually budgeting to fund replacements of those components of the CIC which the Association is obligated to replace and such annual budgeted reserves shall be adequate based upon the estimated remaining useful life of each component unless the components have a remaining useful life of more than 30 years or replacement will be funded by assessments authorized under 515B.3-1151(e)(1) or Subpart (5) of 515B3.-1141. Replacement reserves shall be kept separate from operating funds and shall not be used for or borrowed from for operating expenses. 6.4 Working Capital Fund. Declarant may establish a working capital fund to meet unforeseen expenditures or to purchase additional equipment or services while Declarant is conducting sales activities during the Association’s beginning years of operation. Upon the 15 4916-4537-0263, v. 10 closing of Declarant’s initial sale of a Unit, the purchaser shall pay to the Association a non- refundable amount equal to 2 months’ estimated installments of Common Expense assessment for the Unit in addition to the regular monthly installments of assessments of Common Expenses. The Association shall use and apply this sum for start-up costs and as an operating fund in connection with all initial operating expenses for the Common Elements. Under no circumstances shall Declarant have any obligation to pay this sum so long as Declarant owns a Unit and holds such Unit for sale or as a model. 6.5 Liability of New Owners for Assessments. An Owner’s obligation to pay assessments will commence at the later of (i) the due date for the first assessment levied by the Board, subject to the alternative assessment program, or (ii) the date the Owner acquires title to the Unit. Upon purchasing a Unit, the buyer must pay the Association a pro rata share of the annual assessment if assessments have been levied. 6.6 Buyer’s Liability. In a Unit’s voluntary conveyance, unless the buyer agrees, the buyer will not be personally liable for any Association assessments or other Association charges made against the seller or the seller’s Unit before the Unit’s conveyance to the buyer. However, the lien of such assessments will remain against the Unit until satisfied. 6.7 Statement of Assessments Available. Upon written request by a Unit Owner or the Unit Owner’s authorized agent, the Association must furnish to a Unit Owner or the Owner's authorized agent a statement, in recordable form, setting forth the amount of unpaid assessments currently levied against the Owner's Unit. The Association must furnish the statement within ten (10) business days after receiving the request, and the statement is binding on the Association and every Unit Owner. 6.8 Personal Liability for Assessments. Each Unit Owner is absolutely and unconditionally personally liable for the Common Expenses assessed against its Unit. Liability will be joint and several for Units with multiple Owners. No Owner is exempt from liability for paying its share of Common Expenses by right of set-off, by waiver of use or enjoyment of any part of the Property, by absence from or abandonment of the Unit, by waiver of any other rights, or by reason of any claim against the Association or its officers, directors or agents. 6.9 Assessment Lien. The Association has a lien on a Unit for any assessment levied against that Unit when the assessment becomes due. If an assessment is payable in installments, the full amount of the assessment is a lien when the first installment becomes due. Late charges, fines and other fees or charges the Association imposes are enforceable as assessments immediately become liens against the Unit. Recording the Declaration constitutes record notice and perfection of any lien under this Section, and no further record notice or perfection is required. 6.10 Lien Priority. A lien under this Section is prior to all other liens and encumbrances on a Unit, except the following: (i) liens and encumbrances recorded before the Declaration, (ii) any first mortgage on the Unit, and (iii) liens for real estate taxes and other governmental 16 4916-4537-0263, v. 10 assessments against the Unit. 6.11 Foreclosure of Lien; Remedies. A lien for Common Expenses may be foreclosed against a Unit under Minnesota law (i) by action, or (ii) by advertisement as a lien under a mortgage containing a power of sale. The Association, or its authorized representative, shall have the power to bid in at the foreclosure sale and to acquire, hold, lease, mortgage and convey any Unit so acquired. The Owner and any other person claiming an interest in the Unit, by the acceptance or assertion of any interest in the Unit, grants to the Association a power of sale and full authority to accomplish the foreclosure. The Association shall, in addition, have the right to pursue any other legal or equitable remedy against the Owner who fails to pay any assessment or charge against the Unit. Nothing herein shall waive or limit the rights of the Association under the Act to enforce or foreclose a lien against a Unit or Unit Owner. 6.12 TIF Documents and Obligations. The Property remains subject to the requirements of the TIF Documents which will continue to apply to all Units. Each Unit Owner covenants and agrees (i) to timely pay all real property taxes and special assessments levied against the Owner's Unit; (ii) not to take or permit any action that would cause the Unit to become wholly or partially exempt from real property taxation; (iii) not to take any action or omit to take action which could result in a default under the TIF Documents. Each Unit Owner shall also comply with all obligations applicable to Unit Owners under the TIF Documents to the extent such obligations relate to the use, operation, or taxation of the Property, and any violation of the TIF Documents shall constitute a violation of this Declaration. Pursuant to the terms of the TIF Documents, the holder of the TIF Note will not be entitled to receive scheduled TIF Note payments if Unit Owners do not pay real property taxes on time, or if Unit Owners use their Unit in a manner which causes the Unit to become exempt from real property taxes. In the event a Unit Owner fails to pay real property taxes for the Owner's Unit on time, fails to pay special assessments payable with the real property taxes when due, or does anything to cause the Unit to become wholly or partially exempt from real property taxes, therefore, the Unit Owner shall be personally liable to the holder of the TIF Note for the amount of lost tax increment payments directly attributable to such failure or action, and the Unit Owner shall pay such amount within 10 days of written demand by the holder of the TIF Note. If the Unit Owner fails to pay such amount when due, the Association may assess such amount as a Common Expense assessed exclusively against the Unit, and the amount shall constitute a lien against the Unit enforceable in the same manner as an assessment lien under this Declaration, in addition to any other remedies available to the TIF Note holder. The Association remains responsible to ensure the Property remains in compliance with the TIF Development Contract and in furtherance of this obligation may take any and all action necessary to ensure each Unit Owner’s compliance with the requirements of the TIF Documents. SECTION 7 MAINTENANCE 7.1 Association’s Maintenance. The Association will provide for the following maintenance, repair and replacement, if necessary: 17 4916-4537-0263, v. 10 a.Common Elements. The Association will be responsible for the maintenance, repair, alteration, improvement and replacement of the Common Elements, and all Improvements thereon, including but not limited to, the Limited Common Elements, roofs, siding, exterior surfaces of Buildings, lawn, landscaping, underground sprinkling, hallways, common spaces and areas, common utility lines, driveways, sidewalks, walkways, parking areas and Association Owned Fixtures. For purposes of clarity and not for purposes of limitation, this includes foundations, exterior walls, exterior surfaces and siding, roofs, exterior doors, garage doors, and windows in all Buildings except for the Building containing Unit 105 which is a freestanding building of a different type and style. The Association will not be responsible for the maintenance, repair and replacement of the Building containing Unit 105 except that the Association may undertake such maintenance, repair, and replacement in the event it is not undertaken by the Owner of Unit 105 as required by this Declaration or if undertaken by agreement with the Owner of Unit 105. b.Snow Removal. The Association’s maintenance obligations will also include snow removal (at such level and frequency as deemed appropriate by the Association) from the roadways, parking areas, driveways, sidewalks and steps located on the Common Elements, but not from decks, patios, balconies, terraces or porches. Specifically, the Association will not be required to remove snow from the Limited Common Elements, including without limitation, sidewalks, patios, decks (for purposes of clarity Commercial Units 104 and 105 will have an affirmative obligation to remove all snow and ice from sidewalks shown adjacent to and as Limited Common Elements associated with their Units). c.Yard Maintenance. The Association’s maintenance will also include mowing, raking, watering and maintaining all lawns and sprinkler systems on the Common Elements, as well as maintenance of landscaping and plantings on the Common Elements, to the extent the Board deems necessary or desirable. To the extent the Board deems necessary or desirable the Association will also maintain decorative lighting, decorations, and flower pots for Residential Units. 7.2 Association’s Optional Maintenance. In addition to the maintenance described in this Section, the Association may, with the approval of a majority of votes cast in person or by proxy at a meeting called for such purposes, undertake to provide additional maintenance, upkeep, and replacements. 7.3 Owner’s Maintenance. Each Owner is responsible at the Owner’s sole cost and expense for the maintenance, repair, alteration, improvement and replacement of the Owner’s Unit, including without limitation the following: a.Unit. Owner maintenance includes, but is not limited to, replacement of exterior 18 4916-4537-0263, v. 10 glass in the Unit, washing of windows, maintenance, repair and replacement of appliances, plumbing, electrical, heating, ventilation and air conditioning fixtures or installations, and any portion of any other utility service facilities located in the Unit and serving only the Unit, maintenance of exterior door and window hardware, maintenance of sewer and water utilities located within the Unit and running to the common service lines, maintenance of ceiling, floor and wall coverings (including drywall/plaster) and signage. Each Unit Owner shall perform all maintenance responsibilities in such a manner as not to unreasonably disturb other Owners and Occupants, and all such maintenance and repairs shall comply with applicable Rules and Regulations and Governmental Regulations. b. Unit 105. Unit 105 being self-contained within its own Building will be responsible for all maintenance, upkeep, and replacement of the Building containing Unit 105, including without limitation, all utilities leading to and serving the Building, Building foundations, exterior walls and surfaces, roof, windows, and doors as well as all other normal Unit maintenance as provided for above. Unit 105 shall also be responsible for maintenance, repair and replacement of all sidewalks, patio, pergola, improvements, and fixtures located on the Limited Common Elements associated exclusively with Unit 105. Unit 105’s obligations specifically include clearing snow and ice from sidewalks within its exclusive Limited Common Elements. Unit 105 is also responsible for all trash and recycling associated with its use and its customers’ use of outdoor spaces which includes supplying trash containers which trash will be handled as part of Unit 105’s individual trash removal shared with Unit 104. c. Unit 104. Unit 104 will be responsible for the maintenance, repair, and replacement of rooftop equipment located on the roof of the Building containing Units G1 through G7. In addition, Unit 104 will be responsible for the costs of all repairs occasioned by its use of such rooftop for its equipment. Unit 104 shall have the affirmative obligation to remove any unused or non-functional equipment and restore the roof of such Building. Unit 104 shall be responsible for all exterior doors to the Unit and all gates for trash and recycling areas. d. Health and Safety. Each Owner must keep its Unit free from hazardous substances, vermin, cockroaches, pests, and debris which may pose a threat to the health and safety of Owners and Occupants of other Units. The Association may from time to time set reasonable standards for the upkeep of Units, including without limitation, requiring Owners to employ appropriate contractors to take corrective action to upkeep the Owner’s Unit so as not to affect the health, safety or welfare of other Unit Owners and Occupants. e. Structural Integrity. Owners and Occupants of Units may not take any actions which may impair the structural soundness or integrity of any Building or which may adversely affect the Common Elements or other Units. 19 4916-4537-0263, v. 10 f.Minimum Heating. To prevent damage to and breakage of water and sewer utilities, all Unit Owners must maintain heating systems within their respective Units and maintain the temperature of the Units at all times at a minimum of 50 degrees Fahrenheit or such other reasonable temperature as the Board may establish. g.Duty to Notify Association of Damage. All Owners and Occupants will have a duty to promptly notify the Association of defects in or damage to the Common Elements or Limited Common Elements. h.Limited Common Elements. Routine maintenance (including sweeping, cleaning, etc.) of balconies, decks, patios and other such Limited Common Elements allocated to a Unit shall be the responsibility of the Owners or Occupants of such Unit(s) which has exclusive use of and is served by such Limited Common Elements, and such areas shall be maintained in a neat, attractive and safe condition. The Association shall perform other maintenance, repair and replacement of such Limited Common Elements and assess such costs against the Unit(s) served, or the Association may require that such Unit Owner(s) maintain and repair the Limited Common Elements which are allocated to such Unit(s) at their costs in accordance with the Association’s standards. The cost of repair or damage to any balcony, deck, patio or other Limited Common Element caused by an Owner or Occupant, or their customers, employees, guests or invitees, shall be assessed against the Owner’s or Occupant’s Unit. Any changes or alterations to a Limited Common Element shall require the Association’s prior written approval. Notwithstanding the above, Unit 105 shall, as noted above, have primary responsibility for maintenance, repair, and replacement of its exclusive Limited Common Elements. Unit 104 and 105 will have the responsibility for basic upkeep and cleaning of their recycling and trash collection areas. 7.4 Damage Caused by Owner. An Owner shall within 30 days repair and replace, at the Unit Owner’s expense and subject to the Association’s approval, to the extent that such expense is not covered by the proceeds of insurance carried by the Association, if applicable, any portion of another Unit or the Common Elements which have been damaged or destroyed by reason of the negligent acts or omissions of such Owner, or any Occupant, guest, invitee or licensee of such Owner’s Unit. If the Unit Owner fails to perform the required remedial work, the Association may cause such damage or condition to be repaired or corrected (and enter upon any Unit to do so), and the cost thereof may be assessed against the Unit of the Owner responsible for the damage. 7.5 Waiver of Claim. The Association agrees that it shall make no claim against any Unit Owner or Occupant, and each Unit Owner and Occupant agrees that such person shall make no claim against the Association, the Board members, the Association’s officers, employees or agents, or against the manager or its officers, employees or agents, or other Unit Owners or 20 4916-4537-0263, v. 10 Occupants, for any loss or damage to the Property or to a Unit or personal property, even if caused by the act or neglect of any one or more such persons, due to a peril insured against by casualty insurance purchased by the Association, or any Unit Owner, to the extent of the insurance proceeds recovered under all such insurance policies. All such claims, to the extent of such recovery, are waived and released; provided, that this waiver (i) shall not apply to vandalism or malicious mischief and (ii) shall apply only during such time as the applicable policy contains a clause or endorsement to the effect that any such release shall not adversely affect or impair said policy or policies, or prejudice the right of the insured to recover thereunder. Each Unit Owner and the Board agree that their respective insurance policies shall contain such a clause or endorsement, if available at reasonable cost in the opinion of the party insured thereunder. 7.6 Mechanic’s Liens. Unit Owners shall pay for all material, equipment and labor used in connection with any construction, alteration, modification, remodeling, renovation or other activity and in any such event shall pay such within 30 days of the filing of any mechanic’s lien or other claim; provided, however, that if any such Unit Owner chooses to contest the validity of such lien or claim, the Association may require such Owner to post a bond in favor of the Association and other non-involved Unit Owners equal to 125% of the amount claimed by the holder of such lien or claims, which bond shall indemnify the Association and other non-involved Unit Owners against such lien or claim. Before commencing any construction, alteration, modification, remodeling, or renovation of any portion of the Property, or any other activity that may give rise to mechanic’s liens or other claims, the Association may require the Unit Owner(s) involved post a bond in favor of the Association and other non- involved Unit Owners. 7.7 Services. The Association may obtain and pay for the services of any persons or entities, to manage its affairs, or any part thereof, to the extent it deems advisable, as well as such other personnel as the Association shall determine necessary or desirable for the proper operation of the Property, whether such personnel are furnished or employed directly by the Association or by any person or entity with whom or which it contracts. The Association may obtain and pay for legal and accounting services necessary or desirable in connection with the operation of the Property or the enforcement of this Declaration. The Association may arrange with others to furnish trash collection and other common services to each Unit. 7.8 Utilities. Each Unit Owner shall be responsible at their sole cost and expense to pay directly to the utility providers for any utilities, such as gas, heat, electricity, cable television, telephone, internet service, sewer and water, which are separately metered to such Unit. In the event any such utility services are not separately metered to each Unit, the Association shall be responsible to pay for utilities which are not separately metered, and such expenses will constitute Common Expenses to be paid by the Unit Owners as provided in this Declaration and which may in accord with the terms of this Declaration attribute such costs based upon proportionate use. At the time of this Declaration, the water utilities are separate for the Commercial and Residential Units and will be billed by the Association accordingly. The Association may bill for disproportionate use of other shared utilities such as electricity in 21 4916-4537-0263, v. 10 Garage Units. 7.9 Garbage. The Property contains a common trash and recycling area shown on the Plat which shall be available to Residential Units. Commercial Units 104 and 105 share a recycling area shown on the Plat as a Limited Common Element of those Units. Units 104 and 105 in cooperation with the Association provide areas for garbage bins. The Association shall provide for common garbage and refuse pickup services for Residential Units only, which shall be Common Expenses paid by the Residential Unit Owners only. The Association will not provide refuse or recycling services to the Commercial Units. The Association will not provide for any special refuse services, including such things as special grease disposal which shall be the responsibility of the Commercial Units. SECTION 8 RESTRICTIONS ON PROPERTY’S USE All Owners and Occupants, and all parties, by their acceptance or assertion of an interest in the Property, or by their occupancy of a Unit, covenant and agree that, in addition to any other restrictions which the Governing Documents and Governmental Regulations may impose, the occupancy, use, operation, alienation and conveyance of the Property will be subject to the restrictions set out in this Section, which restrictions will run with the Property and burden and benefit all Owners, Occupants and their heirs, personal representatives, successors and assigns. 8.1 Subdivision or Combination of Units. Any Unit Owner may at the Unit Owner’s sole costs and expense subdivide one or more Units into two or more Units or combine Units into a lesser number of Units pursuant to the requirements of Section 515B.2-112 of the Act, including without limitation, the Association’s approval of such subdivision or combination. Upon the occurrence of any such subdivision or combination of Units, the subdivided or combined Unit(s)’ percentage of undivided interest in the Common Elements, Common Expense liability and percentage vote shall be reallocated among the Unit(s) resulting from such subdivision or combination based on the allocations as provided for in this Declaration. The Declarant may subdivide, combine or convert the Units as a Special Declarant Right as provided for in this Declaration. 8.2 Use. The Residential Units shall be used and occupied by Owners and Occupants and their families and guests exclusively for residential purposes, and not for transient, hotel, commercial, business, or other non-residential purposes, except as provided in this Article. The Commercial Units shall be used and occupied by the Unit’s Owners, and their tenants, customers, guests, invitees and employees exclusively for business or commercial purposes in accordance with Governmental Regulations and the Governing Documents. No part of a Garage Unit shall be used at any time as temporary or permanent lodging. 8.3 Business Use of Residential Units Restricted. No business, trade, occupation or profession of any kind, whether carried on for profit or otherwise, will be conducted, maintained 22 4916-4537-0263, v. 10 or permitted in any Residential Unit, except (i) an Owner or Occupant residing in a Residential Unit may keep and maintain his or her business or professional records in the Unit and handle matters relating to such business by telephone, computer conference, or correspondence therefrom (i.e. office work-from-home), provided that the uses are incidental to the residential use, do not involve physical alteration of the Unit and do not involve any observable business activity such as signs, advertising displays, bulk mailings, or visitation or use of the Unit by customers or employees, (ii) parking shall be regulated by the Association’s Rules and Regulations, (iii) the use shall not, in any material way, interfere with the use and enjoyment by the other Owners of their Units or the Common Elements, (iv) the Association may maintain offices on the Property for management related purposes, (v) Declarant may maintain offices, sales facilities, and (vi) the Association may allow other business activity upon action of the Board confirmed in writing. 8.4 Leasing. Leasing of Units is allowed, subject to the following conditions: (i) all leases will be in writing with a copy provided to the Association prior to the commencement of the lease term, (ii) all leases will provide that they are subordinate and subject to the provisions of the Governing Documents and the Rules and Regulations, and (iii) any failure of the lessee to comply with the terms of the Governing Documents or Rules and Regulations will be a default under the lease. The Association may impose such Rules and Regulations as may be necessary to implement procedures for the leasing of Units consistent with this Section and the Governing Documents. The Unit Owner, and not the Association, will be responsible for any tenants in the Unit, and no lease will release or discharge the Unit Owner from complying with the Governing Documents. All tenancies in violation of this Section may be terminated by the Association in the same fashion as an Owner may terminate a month-to-month tenancy in accordance with Minnesota law. The Association shall have the right to charge the Owner an administrative fee plus costs if the Association incurs any costs as a result of the Owner leasing the Owner’s Unit. Notwithstanding the above, a Residential Unit owned by an institution of higher education and used by it for its own purposes may be occupied by written agreement which does not take the form of a “lease”, but which written agreement must include at a minimum the terms required by this Section for leases of Units. 8.5 Existing Leases; Non-Interference. Declarant and/or a Unit Owner may have entered into one or more leases or occupancy agreements affecting a Unit prior to the recording of this Declaration (each, an "Existing Lease"). Nothing in this Declaration is intended to terminate, impair, or materially modify the landlord's obligations or the tenant's rights under an Existing Lease during its stated term, including any rights relating to access, parking, trash disposal, deliveries, signage, or use of appurtenant limited common elements, to the extent such rights are lawful and consistent with Governmental Regulations. During the term of an Existing Lease, the Association and the Unit Owners shall not unreasonably interfere with the tenant's lawful exercise of such rights. Each Existing Lease shall remain subject to the Governing Documents, and the tenant shall comply with the Rules and Regulations to the extent not inconsistent with the Existing Lease. Upon expiration or earlier termination of an Existing Lease, the continued use and occupancy of the Unit shall be subject to the then-current Governing Documents. 23 4916-4537-0263, v. 10 8.6 Time Shares Prohibited. The time share form of ownership, or any comparable form of lease, occupancy rights or ownership which has the effect of dividing the ownership or occupancy of a Unit into separate time periods, is prohibited. 8.7 Quiet Enjoyment; Nuisances. All Owners, Occupants and their guests, employees, tenants and invitees will use the Property in such a lawful manner as will not cause a nuisance, disturb the peace, quiet, comfort or safety of, or unduly restrict, interfere with or impede the use and enjoyment of the Property by other Owners, Occupants and their guests, employees, tenants and invitees. No noxious, offensive, harassing, threatening or dangerous activity shall be carried on in or upon any Unit or the Common Elements, nor shall any material be kept or anything be done in the Unit, either willfully or negligently, which may become an annoyance or a nuisance to other Unit Owners or Occupants, including without limitation, any offensive, foul or strong odors; continuous, repeated loud sounds or loud music; accumulation of trash or debris; decorations or bright outdoor lights which cause glare to neighboring property (provided that the Property’s security lighting shall not be considered a nuisance and hanging lights over the outdoor seating area for Unit 104 shall be considered permitted); violations of this Declaration’s use and occupancy restrictions; and any other conduct, activity or use which would otherwise meet the definition of a “general nuisance” or “public nuisance” under common law or applicable Governmental Regulations. Kegs and similar single containers of malt beverages exceeding 128 ounces are prohibited from being brought into Residential Units except with the Association’s prior written permission. No construction activities, gatherings, and other events or activities which cause noise which can be heard from other Units shall be permitted between 10:00 p.m. and 8:00 a.m. without the Association’s prior approval; provided that, this restriction shall not restrict normal and customary usage of the Commercial Units, including gatherings, events and activities customarily occurring in such Units during such times. No unreasonably loud music or noise shall be permitted in the interior of any Commercial Units or the exterior areas of the Property without the Association’s consent. 8.8 Animals. No wild or exotic animals, and no pit bulls, rottweilers, or other dangerous dogs with a history of biting, aggressive, or intimidating behavior, shall be allowed on the Property. No animal may be bred or maintained for business or commercial purposes anywhere on the Property. Unless the Association agrees otherwise, no more than 2 domesticated animals will be permitted in any Unit. All animals must be confined inside the Dwelling, and no outdoor kennel or similar enclosure will be permitted. The word "animal" will be construed in its broadest sense and will include all living creatures except humans and fish. All Owners and Occupants of the Property must comply with all applicable City ordinances relating to the keeping of domestic animals. Any cat or dog, whenever outside of a Unit on the Property, must be kept on a leash or other such device under the direct control of the pet owner or another person able to control the pet. The person in charge of the pet must clean up after it. The Board may adopt more specific rules and penalties not inconsistent with the foregoing. The Board may require the removal from the Property of any or all animals considered to be exotic, vicious, dangerous, or which are noisy or which may constitute a nuisance. Owners and Occupants are responsible to pay for any damage to the Property caused by their pets and are obligated to hold harmless and indemnify the Association, and its officers and directors, against any loss, claims or 24 4916-4537-0263, v. 10 liability arising out of any act of the pet. 8.9 Compliance with Law. No use or occupancy will be made of the Property (including the Units and Common Elements) which would violate any then existing Governmental Regulations, including without limitation, any City land use regulations, the TIF Development Contract, nor will any act or use be permitted which could cause waste to the Property, cause a material increase in insurance rates on the Property, or otherwise cause any unusual liability, health or safety risk, or expense, for the Association or any Owner or Occupant. Any violation of Governmental Regulations, including the TIF Development Contract, by an Owner or Occupant shall be a violation of this Declaration. If charged with a violation by the City or any governmental authority, the Owner or Occupant shall indemnify, defend, and hold the Association, and other Owners and Occupants, harmless from all fines, penalties, costs, attorney’s fees or prosecution resulting from the violation. 8.10 Exterior Exposure. No Residential Unit Owner or Occupant shall cause or permit anything (including clothes, sheets, blankets, flags, laundry of any kind or other articles) to be hung, displayed, exposed, or placed in windows (except for draperies, blinds, shades, holiday lights or natural plants) or on the outside of exterior doors or walls without the Association’s prior, written consent. 8.11 Hazardous Materials; Waste; Energy Conservation. No storage of hazardous or flammable materials is allowed on the Property except for reasonable quantities of usual and customary household materials and hazardous materials used in the usual and ordinary course of business operations conducted in a Commercial Unit so long as any such use is in compliance with all applicable Governmental Regulations. No Unit Owner or Occupant shall permit anything to be done or kept in such Owner’s Unit or in the Common Elements which will result in the cancellation of insurance on the Property or the contents thereon or which would be in violation of any Governmental Regulation. No waste shall be committed in the Common Elements. Water, heat, air conditioning, electricity and other forms of energy or utilities shall not be wasted but instead shall be conserved. In pursuit of conservation and equity, no Owner or Occupant of a Garage Unit will install or use refrigerators, freezer, chargers, and other drains on electricity without the prior consent of the Association, which consent must include an agreement to compensate the Association for such additional utility use. 8.12 No Discharge of Firearms. Discharging of firearms, hunting, and the use of explosives are not allowed on any portion of the Property. 8.13 Outside Storage. Outside storage or placement on the Common Elements or any part of the Property of any garbage, trash, rubbish, furniture, or objects of any kind by any Owner or Occupant shall be strictly prohibited, except as the Governing Documents or the Association may otherwise authorize. Each Residential Unit may have typical patio furniture, plants, flowers and decorations and one electric grill (no gas or charcoal grills permitted) located on a patio, deck, terrace or balcony directly adjacent to the Unit if in compliance with City ordinances, but no other type of furniture, appliance, or other items shall be allowed and such 25 4916-4537-0263, v. 10 areas shall be used for no other purpose than for the normal use for which they are intended. No clothes shall hang on railings. Nothing above shall limit the ability of Commercial Units to have potted plants, container plants, hanging plants, railing planters and similar ornamental flowers and plants or to maintain outdoor seating areas and furniture. 8.14 Parking. Exterior parking areas on the Property will be used only for parking of automobiles owned or leased by Owners and Occupants and their guests, including customers of the Commercial Units (subject to the Association’s Rules and Regulations), and such incidental uses as the Association may authorize. No parking on any lawn or landscaped areas is permitted. The use of driveways, roadways and parking areas on the Property, and the types of vehicles and personal property permitted on them, will be subject to the Association’s regulation. No Person shall block access to any Garage Unit or to any other parking area. No parking shall be permitted except in designated parking areas, and the Board may limit parking during periods of snow removal or maintenance. Parallel parking East of Unit 105 and adjacent to the alley will be limited to temporary parking as established by the Board with time limits not to exceed 60 minutes. The Association may, as part of its Rule and Regulations, adopt a fair and equitable system to designate other parking for exclusive or temporary use. Declarant has provided an initial parking plan which will be subject to modification by the Association from time to time provided such adjustments are not inconsistent with this Declaration. Parking on the Property shall be available and assigned for use by the Owners, tenants, family members and guests of Residential Units, with the remainder of the parking spaces (including Garage Units) on the Property available for use by the Owners, tenants, employees, customers, guests and invitees of Commercial Units. 8.15 Vehicle Storage. No boats, snowmobiles, trailers, camping or recreational vehicles, buses, camper tops, all-terrain vehicles, tractor/trailers, commercial vehicles, trucks in excess of 9,000 pounds, or unlicensed or inoperable vehicles will at any time be stored or parked on any part of the exterior parking areas of the Property, but may be stored in the Garage Units if the vehicle fits into the Garage Units and does not unreasonably disturb or inhibit other vehicles. No vehicle with leaking oil or other noxious fluids may remain anywhere on the Property. Notwithstanding the above, the parking space in the Northeast corner of the parking lot which is identified as a Limited Common Element for Unit 104 may be used for commercial vehicle and other parking related to the commercial use. 8.16 Vehicle Repairs. Except for emergency repairs on vehicles registered to the Owners or Occupants of the Unit, no repairs or adjustments to motor vehicles may be completed on the Property. 8.17 Signs. a. Residential Units. Except for signs advertising such Unit’s sale or lease, political signs, or signs otherwise permitted by the Governing Documents or the Association, no advertisement, poster or sign of any kind may be placed on the exterior of a Residential Unit or in a window such that it could be seen from the outside, and any permitted signs shall not exceed six (6) square feet. 26 4916-4537-0263, v. 10 b. Commercial Units. Subject to applicable Governmental Regulations, a Commercial Unit Owner may place business signs and awnings on the exterior Common Elements immediately adjacent to the Commercial Unit; provided that (i) such signs do not contain any moving parts or lights that oscillate or blink and do not emit any noise, and (ii) the ARC approves the size, type and design of the sign, which approval shall not be unreasonably withheld, delayed or conditioned. Signs existing as of the date of this Declaration may remain and be repaired and maintained. The Owner of each Commercial Unit shall be responsible at the Owner’s sole cost and expense to install, maintain, repair and replace all awnings and signage in good condition and repair, ordinary wear and tear excepted. Businesses occupying the Commercial Units shall be entitled to have their business names set forth on any directory the Declarant or the Association locates in or upon the Common Elements, and may place “for sale” or “for rent” signs on the Commercial Units. If Governmental Regulations only allow a certain amount of total signage on the Building in which a Commercial Unit is located, each such Commercial Unit located in the Building will be entitled to a prorata share of the available signage on the Building based upon the square footage of such Commercial Unit to the square footage of all of the Commercial Units in the Building. Commercial Units may place signs in windows and use temporary signs or displays as may be approved by Governmental Regulations. c. Common Elements. Except as specifically provided in this Section, no sign, advertisement, or poster of any kind shall be permitted on the Common Elements, unless initially constructed by the Declarant, specifically allowed by this Declaration or approved by the Association in writing. d. Board Rules. The Board may establish Rules and Regulations further regulating the size, type and design of signs and other displays which are visible from the exteriors of Units. e. Declarant’s Signs. Notwithstanding the foregoing, so long as Declarant owns a Unit held for sale, Declarant shall have the right, without the consent of any Person or the Association, to install such signs, poles, posters, or advertisements as it deems necessary and appropriate in any location on the Property in connection with its sales programs or the sale or lease of Units. 8.18 No Window Alterations. No film or coating may be applied to the interior or exterior of a window which may darken, make reflective, or alter the color or appearance of a window as viewed from outside, without the prior, written consent of the Association. Styrofoam, cardboard, newspaper, bed sheets, reflective foil, flags, or similar items may not be used as window coverings in any Dwelling. All window treatments shall be constructed for use as draperies, curtains, or blinds. 8.19 Awnings. No awnings or shades shall be erected over and outside of the 27 4916-4537-0263, v. 10 windows, nor shall any articles or structures be hung or placed on any outside window sills, without the Association’s prior, written consent or as initially constructed by Declarant. 8.20 Wiring or Penetrations. No satellite dishes or exterior wiring shall be installed nor shall there be penetrations of the walls, window frames, or roofs of the exterior of a Building or a Unit except as authorized by the Association or as part of the initial construction of a Unit or a Building by the Declarant. 8.21 Impairment of Building. Nothing shall be done, placed, installed or erected in any Unit or in, upon or to the Common Elements, which would impair or damage the structural or mechanical integrity or sound insulation quality of the Buildings in which Units are located or which would structurally change any of them except as otherwise provided in this Declaration. 8.22 No Obstructions. The sidewalks, walkways, halls, passages, entrances, corridors, stairways, driveways, parking areas and other Common Elements shall not be obstructed or used for any other purpose than ingress to and egress from the Units and parking areas within the Common Elements except as permitted in the Governing Documents or with the Board’s prior, written consent. Subject to applicable City ordinances, the sidewalk area immediately adjacent to the Commercial Units and abutting Minnesota Street may be used by such Commercial Units for outside sales displays and outdoor seating; provided that outdoor seating and displays shall be in the areas designated by the Association and shall not block the view or access to adjoining Units, and Owners shall keep the area in a clean, neat and attractive condition clear of trash and debris at their sole cost and expense. 8.23 Cable System Access. If the Board of Directors authorizes any sort of master cable or community telephone, television, internet or data system, each Unit Owner authorizes access to his or her Unit upon reasonable notice for the purpose of installing the conduits and fixtures necessary to serve such Unit, without regard to whether the Owner then elects to subscribe to or use such system. 8.24 Bicycles. Except for the Garage Units and designated bike racks or other areas approved by the Association, bicycles shall not be left unattended on the Common Elements and shall not be stored on porches, decks, or balconies. 8.25 Machines. No Owner shall overload the electrical wiring in the Property or operate any machines, appliances, accessories, or equipment in such a manner as to cause an unreasonable disturbance to others. 8.26 Restrictions on Alienation of Units. There are no restrictions on the alienation of Units by reason of age, race, sex, marital status or religion. 8.27 Plantings. Except for the Declarant’s construction and as permitted by the Association, no gardens, shrubs, trees, flowers, or other plants shall be planted by any Person on any portion of the Common Elements or Limited Common Elements. 28 4916-4537-0263, v. 10 8.28 Exterior Lighting. Except for exterior lighting initially constructed by Declarant, no exterior lighting, or changes to existing exterior lighting, shall be allowed without the Association’s approval pursuant to the provisions of Section 8. No lighting shall be allowed which produces glare onto adjacent properties or Units. 8.29 Prohibited Uses. In addition to uses which are inconsistent with the City’s zoning regulations and the Development Agreement, or are prohibited or restricted by other covenants, conditions, restrictions, easements or this Declaration, and not as an exhaustive list, the following uses and activities are prohibited within the Property: a. Adult-oriented establishment or establishment selling or exhibiting pornographic or drug-related paraphernalia, including a strip club, adult bookstore, adult motion picture theater, purveyor of obscene materials, adult entertainment viewing store or adult entertainment studio; b. Pool, billiard or bingo hall; flea market; car wash; dance hall; skating rink, movie theater or casino; c. Any mortuary or funeral home or parlor; d. Any operation primarily used as a storage warehouse operation and any assembling, manufacturing, distilling, refining, smelting, agricultural or mining operation; e. Tattoo or body-piercing parlor or any business devoted primarily to applying tattoos or body piercings; f. Bowling alley; and g. Any dumping, disposing, incineration or reduction of garbage (except for common refuse dumpsters and service provided to the Property). Except for the prohibited uses in this Section, any use allowed by Governmental Regulations, including the City’s zoning code, will be allowed on the Property and may not be prohibited. 8.30 Garage Units. The Garage Units and the use of the Garage Units shall be subject to the Governing Documents and all of the following: a. The Declarant may in its sole discretion offer the Garage Units which it owns for purchase or lease to the Association or any Unit Owner for a price and upon terms and conditions established by the Declarant which are not inconsistent with the Governing Documents. Garage Units may only be owned or conveyed (except for leasing permitted under this Declaration) voluntarily, by operation of law, or 29 4916-4537-0263, v. 10 otherwise, to one of the following (i) the Declarant, its successors or assigns, (b) an Owner of a Residential or Commercial Unit, or (iii) the Association. Any purported conveyance or transfer of a Garage Unit other than as provided in this Declaration shall be deemed null and void. b. The Association will maintain a list of all current Owners of each Garage Unit for inspection by any Owner, Eligible Mortgagee, prospective buyer, or other interested party. c. The Garage Units and their use shall be subject to the Governing Documents and Rules and Regulations. d. Notwithstanding anything in this Declaration apparently to the contrary, the Declarant may lease to third parties or use any Garage Unit which Declarant owns for its own purposes, including storage, use by prospective Unit purchasers and such other parties as the Declarant may reasonably determine for as long as the Declarant owns a Commercial or Residential Unit. e. Subject to applicable Governmental Regulations, and except as otherwise specifically provided in this Declaration (such as Garage Units G-1 and G-2 used for cold storage and ancillary uses related to the Commercial Units), all Garage Units are restricted to parking of authorized boats, motorcycles, automobiles and motorized vehicles, usual and customary storage of personal property and incidental and related uses. All guests, customers and invitees of a Unit Owner shall park in areas prescribed by the Association for guest parking. f. The Association may, from time to time, make such reasonable Rules or Regulations as the Association deems necessary and appropriate concerning the safety and security of all Garage Units and parking areas if not inconsistent with this Declaration’s terms. g. The use of the Garage Units shall not create objectionable noises or odors, damage or endanger the structure of the parking garages or the Buildings, create or constitute a nuisance or hazardous condition, or make any alterations to the parking garage or any portion of it. All damage to the Property, including without limitation a building containing the Garage Units, or any portion of it, caused by the Person occupying the Garage Unit shall be repaired at the cost of the Owner to whom the Garage Unit is assigned. The Owner(s) of each Garage Unit shall keep the Garage Unit and adjacent area clean and tidy. h. The use of electricity in the Garage Units shall be limited to usual and customary usage for similarly situated garages. Garage Units may not contain refrigerators/freezers, heaters, car chargers, or similar drains on electricity without the prior written consent and agreement of the Association which may 30 4916-4537-0263, v. 10 include an allocation of costs or requiring separate metering. The Association’s consent may be withheld in its sole discretion. i. No renovation of the interior of a Garage Unit may be undertaken by and Owner except with the express written consent of the Association. j. Garage Units G-1 and G-2 may be accessed through the overhead doors or a shared access door. No wall or obstruction may be constructed to divide Units Garage Units G-1 and G-2. k. Garage Units G-8 through G-14 only have access through the overhead doors. These units have no interior dividing walls. No walls or obstructions may be constructed by Garage Unit Owners to divide Garage Units without the prior written approval of the Association which may be denied in the Association’s discretion. l. Garage Units G-3 through G-7 have access through overhead doors and through a common back door. Each of these Garage Units will have an easement over and across the other Garage Units for purposes of accessing their Garage Unit from the common back door. No walls or obstructions may be constructed dividing Garage Units G-3 through G-7. 8.31 Restaurant Ventilation. A Commercial Unit which is used as a bar, restaurant, or similar use may install an exterior exhaust vent, provided that the vent exceeds the height of the building and is reasonably approved by the Association regarding exact location, color, etc. pursuant to this Declaration. Ventilation systems existing as of the date of this Declaration may be repaired and replaced without the consent of the Association. 8.32 Limited Common Element Entry Ways. Shared entry ways that are for the use of two Residential Units, must be kept free of all refuse and personal property. Notwithstanding the foregoing, each unit may have an area for footwear, a shared bench, and a table with a lamp at end of the hallway. Other things such as art work, bicycles can put there if both parties agree and the Association agrees. SECTION 9 ARCHITECTURAL CONTROL 9.1 Restrictions on Construction and Alterations. The following restrictions and requirements will apply to any construction or Improvements on the Property: a. Except as expressly provided in this Section and except for construction or Improvements made by Declarant in consideration of a Unit’s initial sale, no Improvements may be started, erected or maintained on the Property unless the Plans for the Improvements have been submitted to and approved in writing by 31 4916-4537-0263, v. 10 the ARC. b. To the extent permitted by law, the Declarant's written consent is also required for all Improvements until Declarant no longer owns any unsold Unit and has no further rights to add to the Property. c. Approval of Improvements is in the sole discretion of the ARC and when applicable the Declarant. d. The minimum criteria for approval will include and require: (i) substantial uniformity of color, size, location, type and design in relation to existing improvements and topography, (i) comparable or better quality of materials as used in existing improvements on the Property, (iii) ease of maintenance and repair, (iv) adequate protection of the Property, the Association, Owners and Occupants from liability and liens arising out of the proposed Improvements, (v) compliance with applicable Governmental Regulations, and (vi) the Improvements will not negatively affect (including negative impact on value or increased ongoing costs) on the Unit, other Units, the Common Elements or the Association. e. Any initial construction on a Unit will require only the Declarant’s review and approval and will not be subject to the ARC’s review and approval. f. Notwithstanding the foregoing, Commercial Unit Owners may remodel the interior of Commercial Units in the ordinary course of business without obtaining the Association’s approval provided that such remodeling is done in a good and workmanlike manner and otherwise complies with all applicable Governmental Regulations and the Governing Documents. g. Subject to this Declaration’s provisions, a Unit Owner making any Improvements shall ensure that (i) the Improvements do not impair the structural integrity or mechanical systems, affect the Common Elements or impair the support of any portion of the Property, (ii) prior arrangements are made with the Association to ensure that other Unit Owners are not disturbed, (iii) the Common Elements are not damaged, (iv) the Common Elements and other Units are protected against mechanic’s liens, (v) all Improvements comply with applicable Governmental Regulations and are completed diligently in a good and workmanlike manner, and (vi) shall reimburse the Association for any costs the Association incurs in connection with such Improvements such as increased costs of trash removal. 9.2 Review Procedures. The following procedures govern requests for Improvements: a. Detailed Plans and related information regarding any proposed Improvement in a form and content acceptable to the ARC, must be submitted to the ARC and the 32 4916-4537-0263, v. 10 Declarant during any period Declarant retains approval rights, at least 30 days before the proposed start of construction. No Improvements may be commenced before approval by the ARC or Declarant, as the case may be. b. The ARC and Declarant will give the Owner written notice of approval or disapproval. If the ARC and Declarant do not approve or disapprove of the Plans within 30 days after receiving all other information the ARC requests, then approval will not be required, and this Section will be deemed to have been fully complied with so long as the Improvements are done in accordance with the Plans and related information which were submitted. c. If no request for approval is submitted, approval is denied, unless (i) the Improvements are reasonably visible, and (ii) written notice of the violation is not given to the Owner who made the Improvements within 1 year following the date of completion of the Improvements. Notice may be by written notice or the commencement of legal action by an Owner or the Association. The Owner of the Unit in which the Improvements are made will have the burden of proof, by clear and convincing evidence, that Improvements were completed and reasonably visible for at least one 1 year following completion and that notice was not given. 9.3 Remedies for Violations. The Association may remove any unapproved Improvement at the Unit Owner’s expense and may pursue any legal or administrative remedy to enforce compliance with this Section and will be entitled to recover all attorneys' fees and costs of enforcement from the Owner causing or permitting the violation, whether or not a legal action is started. Such attorneys' fees and costs will be a lien against the Owner's Unit and the Owner’s personal obligation. 9.4 Hold Harmless. The Owner who causes any Improvements to be made, regardless of whether the ARC or Declarant approves the Improvements, shall be solely responsible for the construction standards and specifications relating to the Improvements and the construction work. The Owner, and not the Association, the ARC or the Declarant, is responsible for determining whether any Improvements is in violation of any restrictions imposed by the City or any governmental authority having jurisdiction over the Property. The Owner shall hold the Association, the ARC and the Declarant harmless and indemnify the Association, the ARC, Declarant, and their respective owners, officers, directors and employees, from and against any expenses, claims, damages, losses or other liabilities, including without limitation attorney’s fees and costs, arising out of (i) any Improvements which violate any Governmental Regulations, (ii) the adequacy of the specifications for construction of the Improvements, and (iii) the construction of the Improvements. 9.5 Altering Partitions. Subject to the terms of this Declaration and Governmental Regulations, a Unit Owner may, in the Unit Owner’s sole cost and expense, after acquiring title to an adjoining Unit and/or adjoining part of an adjoining Unit, with the Association’s prior written consent which may be withheld in its sole discretion, remove or alter any intervening 33 4916-4537-0263, v. 10 partition or create apertures therein, even if the partition is part of the Common Elements, if those acts do not impair the structural integrity of mechanical systems or lessen the support of any portion of the Property. The adjoining Unit Owners shall have the exclusive license to use the space occupied by the removed partition, but the use shall not create an easement or vested right. The removal of partitions or creation of apertures under this Section shall not be considered an alteration of boundaries. The Association may require that the Owner or Owners of Units affected replace or restore any removed partition, that the Unit Owner comply with this Section requirements and that the Unit Owner pay all fees and costs incurred by the Association in connection with the alteration. SECTION 10 INSURANCE 10.1 Required Coverage. Commencing not later than the time of the first conveyance of a Unit to an Owner other than the Declarant, the Association will obtain and maintain, at a minimum, a master policy or policies of insurance in accordance with the requirements of the Act and this Declaration issued by a reputable insurance company or companies authorized to do business in the State of Minnesota, as follows: a. Property Insurance. Property insurance for broad form covered causes of loss in a total amount of not less than the full insurable “replacement cost” of the improvements on the Common Elements and Units, less deductibles, exclusive of land, foundation, excavation and other items normally excluded from property policies (but including all service equipment and machinery), except such perils as may be separately insured or are uninsurable. The policy or policies shall cover personal property owned by the Association. Such policy or policies will include such additional endorsements, coverages and limits as may be required by regulation of the Federal Housing Administration (“FHA”), the U.S. Department of Veterans’ Affairs (“VA”), or the Federal National Mortgage Association (“FNMA”) as a precondition to their insuring, purchasing or financing a mortgage on a Unit. The Board may also enter into binding written agreements with a mortgagee, insurer or servicer obligating the Association to keep certain specified coverages or endorsements in effect. The policy or policies need not cover the Unit Owners’ personal property or any of the following items within the Units: (i) ceiling or wall finishing materials, (ii) floor coverings, (iii) cabinetry, (iv) finished millwork, (v) electrical or plumbing fixtures serving a single Unit, (vi) built-in appliances, or (vii) other improvements and betterments, regardless of when installed. If any improvements and betterments are covered, any increased cost may be assessed by the Association against the Units affected. UNIT OWNERS MUST CONSULT A QUALIFIED INSURANCE AGENT AND OBTAIN THEIR OWN PROPERTY INSURANCE COVERAGE FOR REAL PROPERTY AND PERSONAL PROPERTY WITHIN THEIR UNIT 34 4916-4537-0263, v. 10 WHICH ARE NOT COVERED BY THE ASSOCIATION’S INSURANCE POLICY. b. General Liability Insurance. Commercial general liability insurance against claims and liabilities arising in connection with the ownership, existence, use or management of the Property in an amount deemed sufficient in the judgment of the Board, insuring the Board, the Association, the management agent, and their respective employees, agents and all persons acting as agents. The Declarant shall be included as an additional insured in its capacity as a Unit Owner or board member. The Unit Owners shall be included as additional insureds but only for claims and liabilities arising in connection with the ownership, existence, use or management of the Common Elements. The insurance shall cover claims of one or more insured parties against other insured parties. Such policy or policies will include such additional endorsements, coverages and limits as may be required by regulation of the Federal Housing Administration (“FHA”), the U.S. Department of Veterans’ Affairs (“VA”), or the Federal National Mortgage Association (“FNMA”) as a precondition to their insuring, purchasing or financing a mortgage on a Unit. The Association’s liability policy does not cover Unit Owners’ personal liability for accidents or damage occurring in the Units. UNIT OWNERS MUST CONSULT A QUALIFIED INSURANCE AGENT AND OBTAIN THEIR OWN LIABILITY INSURANCE COVERAGE COVERING LIABILITY FOR ACCIDENTS OR DAMAGE OCCURRING WITHIN THE UNITS. c. Fidelity Bond Insurance. Fidelity bond or coverage against dishonest acts on the part of directors, officers, managers, trustees, employees or persons responsible for handling funds belonging to or administered by the Association if deemed advisable by the Board. d. Workers Compensation Insurance. Workers’ Compensation insurance as applicable and required by law. e. D&O Insurance. Directors and officers liability insurance with such reasonable limits and coverages if the Board deems necessary. f. Other Insurance. Other insurance as the Board may determine to be in the best interests of the Association and the Owners. The Association will promptly notify all Owners if the insurance described above is not reasonably available. 10.2 Insureds. The insurance policies must provide that each Owner and secured party is an insured person with respect to liability arising out of the Owner's interest in the Common Elements or membership in the Association. 35 4916-4537-0263, v. 10 10.3 Premiums, Improvements, Deductibles. Except as otherwise provided in this Declaration, all insurance premiums will be assessed and paid as a Common Expense. If improvements and betterments to the Units are covered, any increased cost may be assessed against the Units affected. The Association may, in the case of a claim for damage to a Unit or Units, (i) pay the deductible amount as a Common Expense, (ii) assess the deductible amount against the Units affected in a reasonable manner, or (iii) require the Owners of the Units affected to pay the deductible amount directly. The Association’s decision as to who shall be charged with paying the deductible amount may, but need not, be based on fault. 10.4 Loss Payee; Insurance Trustee. All insurance coverage maintained by the Association must be written in the Association’s name, and the proceeds of any insurance coverage the Association maintains must be payable to the Association or an insurance trustee the Association designates for that purpose, for the benefit of the Owners and secured parties, including Eligible Mortgagees, which suffer loss. The Association, or any person it selects, will have exclusive authority to negotiate, settle and collect upon claims or losses under any insurance policy the Association maintains. 10.5 Proceeds. The proceeds will be disbursed first for the repair or restoration of the damaged Common Elements and Units. The Association shall retain any surplus proceeds or distribute the surplus among the Owners on an equitable basis as the Board determines. 10.6 Waivers of Subrogation. All policies of insurance will contain waivers of subrogation by the insurer against the Association or its officers or directors, or an Owner or members of the Owner’s household, as applicable. If available, the policies will also contain waivers of any defense based on co-insurance or of invalidity from any acts of the insured. 10.7 Cancellation: Notice of Loss. All policies of property insurance and comprehensive liability insurance the Association maintains will provide that the insurer that has issued an insurance policy under this section will issue certificates or memoranda of insurance, upon request, to any Owner or secured party. The insurance may not be canceled until 60 days after written notice of the proposed cancellation has been mailed to the Association and each Person to whom a certificate of insurance has been issued. 10.8 Restoration in Lieu of Cash Settlement. All policies of property insurance maintained by the Association shall provide that, despite any provisions giving the insurer the right to elect to restore damage in lieu of a cash settlement, such option shall not be exercisable (i) without the prior written approval of the Association (or any insurance trustee) or (ii) when in conflict with provisions of any insurance trust agreement to which the Association may be a party, or any requirement of law. 10.9 Repair or Replacement; Exceptions. Any portion of the common interest community which is damaged or destroyed as the result of a loss covered by the Association's insurance shall be promptly repaired or replaced by the Association unless (i) the common 36 4916-4537-0263, v. 10 interest community is terminated and the Association votes not to repair or replace all or part thereof, (ii) repair or replacement would be illegal under any state or local health or safety statute or ordinance, or (iii) 80% of the Owners, including every Owner and holder of a first mortgage on a Unit or assigned Limited Common Element which will not be rebuilt, vote not to rebuild. Subject to any other limit of this Declaration, the cost of repair or replacement of the Common Elements in excess of insurance proceeds and reserves shall be paid as a Common Expense, and the cost of repair of a Unit in excess of insurance proceeds shall be paid by the respective Owner. 10.10 Partial Repair. If less than the entire common interest community is repaired or replaced, (i) the insurance proceeds attributable to the damaged Common Elements shall be used to restore the damaged area to a condition compatible with the remainder of the common interest community, (ii) the insurance proceeds attributable to Units and Limited Common Elements which are not rebuilt shall be distributed to the Owners of those Units, including Units to which the Limited Common Elements were assigned, and the secured parties of those Units, as their interests may appear, and (iii) the remainder of the proceeds shall be distributed to all the Owners and secured parties as their interests may appear in proportion to their common expense liability. 10.11 No Contribution. All insurance policies the Association maintains will be the primary insurance where there is other insurance in the name of the Owner covering the same property and may not be brought into contribution with any insurance purchased by Owners or their Eligible Mortgagees. 10.12 Effect of Acts Not Within Association’s Control. All insurance policies the Association maintains will provide that coverage will not be voided by or conditioned upon (i) any act or omission of an Owner or Eligible Mortgagee, unless acting within the scope of authority on behalf of the Association, or (ii) any failure of the Association to comply with any warranty or condition regarding any portion of the Property over which the Association has no control. 10.13 Owner’s Personal Insurance. Each Owner must obtain property insurance (commonly known as “gap” or “HO6" coverage) covering all risks of physical loss in an amount equal to 100% of the insurable “replacement value,” of the portion of the Unit not covered by the Association’s policies, exclusive of items normally excluded from coverage. The policies shall meet the same requirements of those required for the Association. Owners must also maintain additional personal coverage, at their own expense, covering personal property and personal liability. All Owners’ insurance policies shall provide that they are without contribution as against the insurance purchased by the Association. Owners are required to provide proof of insurance to the Association on an annual basis. Insurance carried by Owners must provide for thirty (30) days’ notice to the Association prior to cancellation or amendment and must also provide that the Association is an additional insured as it relates to coverage of property damage to the Dwelling or Unit. The Association shall have a lien on all insurance proceeds to insure Owner’s reconstruction of its Unit as required by this Declaration. 37 4916-4537-0263, v. 10 SECTION 11 COMPLIANCE AND REMEDIES 11.1 Entitlement to Relief. The Association may commence legal action (i) to recover sums due, (ii) for damages, (iii) for injunctive relief or (iv) to foreclose a lien owned by it, (v) take any action authorized by the Act; or any combination of these remedies. The Association may also commence an action for any other relief the Governing Documents authorize or are available at law or in equity. Legal relief may be sought by the Association against any Owner, or by an Owner against the Association or another Owner, to enforce compliance with the Governing Documents, the Rules and Regulations, or the Association’s decisions. However, an Owner may not withhold paying assessments to the Association or take other action in violation of the Governing Documents, the Rules and Regulations for any reason. 11.2 Sanctions and Remedies. In addition to any other remedies, the Association has the right, but not the obligation, to implement any one or more of the following actions against Owners and Occupants and/or their guests, who violate the provisions of the Governing Documents, the Rules and Regulations or the Act: a. Commence legal action for damages or equitable relief in any court of competent jurisdiction. b. Impose late charges of up to the greater of $50 or 15% of the amount due, for each late payment of an assessment or installment, and interest at the highest rate permitted by law on all such unpaid amounts from the due date. c. Upon ten (10) days prior written notice, accelerate all installments of assessments after a default in payment of any assessment or installment continues for more than thirty (30) days, together with all collection costs and later charges. d. Impose reasonable fines, penalties, or charges for each violation. e. Restore any portions of the Common Elements, Limited Common Elements, or Units damaged or altered, or allowed to be damaged or altered, by any Owner or Occupant or their guests, tenants, employees or invitees in violation of the Governing Documents, and assess the cost of restoration against the responsible Owners and their Units. f. When the violation materially affects, or is likely to materially affect, the health or safety of the other Owners or Occupants, or their guests or other part of the Property or the property of the Owners or Occupants enter the Unit, and summarily abate and remove, at the expense of the offending Owner or Occupant, any structure, thing or condition in the Unit which is causing the violation. g. Foreclose any lien arising under the Governing Documents or under law, in the 38 4916-4537-0263, v. 10 manner provided for mortgage foreclosures by action or advertisement under a power of sale. h. Suspend the rights of any Member to vote when the Member is in violation of the Governing Documents, the Rules and Regulations, or the Act. 11.3 Hearing Rights. Upon imposing any remedy authorized by this Section, the Board will, upon written request, grant to the offender a fair and equitable hearing. The offender will be given notice of the nature of the violation and the right to a hearing, and at least 10 days to request a hearing. The Board will schedule the hearing and hold it within 30 days of the Board’s receipt of the hearing request, and with at least 5 days prior written notice to the offender. If the offending Owner fails to appear at the hearing, then the right to a hearing is waived and the Board may take such action as it deems appropriate. The Board’s decision and the Board’s rules for conducting hearings will be final and binding on all parties. The Board will deliver its written decision to the offender within 10 days after the hearing, if not delivered at the hearing. 11.4 Costs of Proceeding and Attorney’s Fees. For any collection action or any enforcement or legal action which the Association takes and receives a verdict, award or judgement in favor of the Association, the Association may assess the violator and his, her or its Unit with any expenses from such enforcement, including without limitation fines or charges imposed by the Association, reasonable attorney’s fees, and interest (at the highest rate allowed by law) on delinquent amounts owed to the Association. The Association may assess attorney’s fees whether or not court action is necessary. 11.5 Lien for Charges, Penalties, Etc. Any assessments, charges, fines, penalties, or interest imposed under this Section shall be a lien against the Unit of the Owner or Occupant against whom the same are imposed and the personal obligation of such Owner in the same manner and with the same priority and effect as assessments under this Declaration. The lien shall attach as of the date of imposition of the remedy, but shall not be final as to violations for which a hearing is held until the Board gives written notice following the hearing. All remedies shall be cumulative, and the exercise of, or failure to exercise, any remedy shall not be deemed a waiver of the right to pursue any others. 11.6 Liability for Owners' and Occupants' Acts. An Owner shall be liable for the expense of any maintenance, repair or replacement of the Property rendered necessary by such Owner's acts or omissions, or by that of Occupants, guests, tenants, employees, or invitees in the Owner's Unit, to the extent that such expense is not covered by the proceeds of insurance carried by the Association or such Owner or Occupant. Any insurance deductible amount and/or increase in insurance rates resulting from the Owner's acts or omissions may be assessed against the Owner responsible for the condition and against his or her Unit. 11.7 Enforcement by Owners and Declarant. This Section does not limit or impair the independent rights of other Owners to enforce the Act, the Governing Documents or the Rules 39 4916-4537-0263, v. 10 and Regulations. Owners who take action to enforce the provisions of the Act, the Governing Documents or the Rules and Regulations will be entitled to attorney’s fees and costs incurred in such enforcement. Declarant is entitled to take whatever legal or administrative action necessary to cause compliance with the terms and conditions of this Declaration. Declarant is not obligated or responsible for the enforcement of the obligations and restrictions contained in this Declaration. SECTION 12 SPECIAL DECLARANT RIGHTS Notwithstanding anything in the Governing Documents to the contrary, Declarant reserves exclusive and unconditional authority to exercise the following special Declarant rights, for as long as it owns a Unit: 12.1 Complete Improvements. To complete all of the Units and improvements indicated on the CIC Plat or otherwise included in Declarant’s development plans or allowed by the Declaration, and to make alterations in the Units and the Common Elements to accommodate its sales facilities. 12.2 Subdivision, Combination and Conversion. To subdivide, combine or convert a Unit or Units into one or more Units, Limited Common Elements, Common Elements, or a combination of Units, Limited Common Elements or Common Elements, subject to the Act’s requirements. Declarant has the right to subdivide or convert the initial Commercial Units, Limited Common Elements appurtenant thereto and Common Elements subject to the limitations of this Declaration and the Act. 12.3 Sales Facilities. Until Declarant no longer owns a Unit, to operate and maintain a sales office, management office, model Units, and other development, sales and rental facilities in any Units owned by Declarant and on the Common Elements. 12.4 Signs. Until Declarant no longer owns a Unit, to erect and maintain signs, and other sales displays offering the Units for sale or lease, in any Unit owned by Declarant and within the Common Elements. 12.5 Easements. To have and use easements, for itself, its employees, contractors, representatives, agents and prospective purchasers through and over any land included in the Property to exercise its special Declarant rights, including without limitation the right to construct and install duct work, plumbing, electrical, mechanical or other utilities or improvements in connection with the improvement or alteration of any Unit or the Common Elements and to perform such construction work necessary to complete the improvements on the Property. 12.6 Right to Relocate Boundaries. To relocate the boundaries of any Unit which 40 4916-4537-0263, v. 10 Declarant owns pursuant to Section 515B.2-114 of the Act. 12.7 Association Control. Subject to Minnesota Statutes 515B.3-103, to control the Association’s operation and administration, including without limitation, the power to appoint and remove the members of the Board and any officer, until the earliest of: (i) Declarant’s voluntary surrender of control or (ii) the end of the Declarant Control Period. Notwithstanding the foregoing, the Owners other than Declarant shall have the right to nominate and elect not less than 33 and 1/3% of the directors at a meeting of the Owners which shall be held within 60 days following the conveyance by Declarant of 50% of the total number of Units authorized to be included in the Property. Minnesota Statutes 515B.3-103 shall further provide matters regarding Declarant Control regarding election of Board Members. 12.8 Consent to Certain Amendments. Until Declarant no longer owns any Unit for initial sale (or so long as allowed by law if sooner), Declarant’s written consent shall be required for any amendment to the Governing Documents or Rules and Regulations which directly or indirectly affects or may affect Declarant’s rights under the Governing Documents or the Act, but only so long as such rights are exercisable by Declarant. 12.9 Transfer of Declarant’s Rights. Any right or privilege conferred upon the Declarant by this Declaration may not transfer to transferees or successors in interest in any part of the Property or the Units unless the document of conveyance specifically states: “THIS TRANSFER OF PROPERTY INCLUDES THE TRANSFER OF THE SPECIAL DECLARANT RIGHTS CREATED BY THAT CERTAIN DECLARATION COVERING THE PROPERTY.” 12.10 Non-interference with Declarant’s Rights. The Association and Owners shall not take any action to amend this Declaration in a manner which would materially interfere with the enumerated rights of the Declarant under this Section during periods in which those rights are validly exercisable. In particular, so long as Declarant owns a Unit, the Association shall take no action which adversely affects Declarant’s ability to sell the Units without Declarant’s prior written consent. 12.11 Turnover of Control; Delivery of Records. In accord with Minnesota Statutes 515B.3-103, upon termination of the Declarant Control Period, Declarant will transfer control of the Association to the Unit Owners in accord with the Act and cause a meeting to be held for the election of the Board in accord with the Act and the Bylaws of the Association. This Association meeting shall be called and held within 60 days after termination of the Declarant Control Period. Within a reasonable period of time after such transfer, Declarant will deliver to the Association all property, funds, and records of the Association then in the Declarant’s possession or control. SECTION 13 AMENDMENTS 41 4916-4537-0263, v. 10 13.1 Amendment. Except as may be more restricted by the requirements of the Act, this Declaration may be amended by the consent of (i) Unit Owners that are collectively allocated at least 67% of the voting power of the Association, (ii) the required percentage of Eligible Mortgagees (based upon one vote per first mortgage owned) for amendments requiring their vote as outlined in Section 14, and (iii) the Declarant’s consent to any amendments which directly or indirectly affect or may affect Declarant’s rights under the Governing Documents or the Act until such time as Declarant no longer owns any Unit for initial sale. The Owners’ consent may be obtained in writing or at a duly held Association meeting. Consents of Eligible Mortgagees and Declarant must be in writing. Amendments will be effective when recorded. 13.2 Secretary’s Affidavit. An affidavit by the Association’s Secretary attesting to the vote results, or execution of the foregoing agreements or consents, will be adequate evidence thereof for all purposes, including without limitation, the amendment’s recording. 13.3 Limitations. Except to the extent expressly permitted or required by the Act, no amendment may create or increase the special Declarant rights, increase the number of Units, convert the Common Elements to Limited Common Elements, or change the boundaries of a Unit, change a Unit’s allocated interests, change the authorized use of a Unit from residential to commercial, or conversely, without the unanimous written consent of the Unit Owners. In addition, this Declaration may not be amended to alter the rights expressly granted in this Declaration that relate solely to the Commercial Units without the written consent of each owner of the Commercial Units. SECTION 14 RIGHTS OF ELIGIBLE MORTGAGEES Eligible Mortgagees have the following rights and protections: 14.1 Consent to Certain Amendments. Written consent of Eligible Mortgagees representing at least 51% of the Units subject to first mortgages held by Eligible Mortgagees (based upon one vote per first mortgage owned) is required for any action which causes any change in the following: (i) voting rights; (ii) priority of assessment liens; (iii) responsibility for maintenance and repairs; (iv) reallocation of interests in the Common Elements or rights to their use; (v) redefinition of any Unit boundaries; (vi) convertibility of Units into Common Elements or vice versa; (vii) insurance or fidelity bonds; (viii) imposition of any restrictions on an Owner’s right to sell or transfer a Unit; (ix) a decision by the Association to establish self-management when professional management is in effect as required previously by the Governing Documents or an Eligible Mortgagee; (x) restoration or repair of the Common Elements (after a hazard damage or partial condemnation) in a manner other than specified in the Governing Documents; (xi) any action to terminate the Association’s legal status after substantial destruction or condemnation occurs; or (xii) any provisions that expressly benefit Eligible Mortgagees, insurers or mortgage guarantors. Notwithstanding the foregoing, implied approval of a proposed amendment shall be assumed when an Eligible Mortgagee fails to submit a response to any 42 4916-4537-0263, v. 10 written proposal for an amendment within 60 days after it receives proper notice of the proposal. 14.2 Consent to Certain Actions. Written consent of Eligible Mortgagees representing at least 67% of the Units subject to first mortgages held by Eligible Mortgagees (based upon one vote per first mortgage owned) will be required to (i) abandon or terminate the Association, or (ii) change the allocations of voting rights, Common Expense obligations or interest in the Common Elements. 14.3 Consent to Subdivision. No Unit may be partitioned or subdivided without the prior written approval of the Unit’s Owner and Eligible Mortgagee. 14.4 Lien Priority. Any holder of a first mortgage on a Unit or any purchaser of a first mortgage at a foreclosure sale, that acquires ownership of a Unit by foreclosure or by deed or assignment in lieu of foreclosure, takes the Unit free of any claims for unpaid assessments or any other charges or liens imposed against the Unit by the Association which have accrued before the acquisition of the Unit by the first mortgage holder or purchaser, except as otherwise provided in this Declaration, and except that any unreimbursed assessments or charges may be reallocated among all Units according to their interests in the Common Elements. 14.5 Priority for Condemnation Awards. No provision of the Governing Documents gives any Owner, or any other party, priority over any rights of the applicable Eligible Mortgagee to such Owner’s share of insurance proceeds or condemnation awards for the loss or taking of the Unit and/or the Common Elements. The Association will notify all Eligible Mortgagees of any condemnation or eminent domain proceeding affecting the Common Elements promptly after receiving notice from the condemning authority. 14.6 Access to Books and Records/Audit. Eligible Mortgagees have the right to examine the Association’s books and records upon reasonable notice during normal business hours, and to receive, upon written request, copies of the Association’s annual reports and other financial statements. Financial statements, including audited financials, if any, will be available within 120 days of the end of the Association’s fiscal year. If a request is made by a government agency issuing a mortgage, or any institutional guarantor or insurer of a mortgage loan against a Unit for an audit of the Association’s financial statements for the preceding year, the Association will cause an audit to be made and deliver a copy to the requesting party. 14.7 Notice Requirements. Upon written request to the Association identifying the name and address of the holder, insurer or guarantor of a mortgage on a Unit and the Unit number or address, the holder, insurer or guarantor will be entitled to timely written notice of: a. a condemnation loss or casualty loss which affects a material portion of the Unit securing the mortgage of which the Association has been provided written notice; b. a 60-day delinquency in payment of assessments or charges owed by the Owner of the mortgaged Unit; 43 4916-4537-0263, v. 10 c. a lapse, cancellation or material modification of any insurance policy by the Association; and d. a proposed action requiring the consent of a specified percentage of Eligible Mortgagees. SECTION 15 MISCELLANEOUS 15.1 Severability. If any term, covenant, or provision of this instrument or attached exhibit is held to be invalid or unenforceable for any reason whatsoever, such determination will not alter, affect or impair in any manner whatsoever any other portion of this instrument or exhibits. 15.2 Construction. Where applicable the masculine gender of any word used herein will mean the feminine or neutral gender, or vice versa, and the singular of any word used in this Agreement will mean the plural, or vice versa. 15.3 Tender of Claims. If any incident occurs which could reasonably give rise to a demand by the Association against Declarant for indemnification, the Association will promptly tender defense of the action to its insurance carrier, and give Declarant written notice of such tender, the specific nature of the action and an opportunity to defend against the action. 15.4 Notices. Unless provided otherwise in the Governing Documents, all notices required to be given by or to the Association, the Board of Directors, the Association officers, the Eligible Mortgagees or the Owners or Occupants will be in writing and will be effective upon hand delivery, or upon mailing if properly addressed with postage prepaid and deposited in the United States mail. Unless otherwise provided for in the Bylaws, registrations will be effective upon receipt by the Association. 15.5 Conflicts Among Documents. If any conflict arises between the provisions of the Common Interest Community Act, Declaration, Bylaws and Rules and Regulations, the Common Interest Community Act will control over all of the others, the Declaration will control over the Bylaws and the Rules and Regulations, the Bylaws will control over the Rules and Regulations. 15.6 Requirements of Management Agreements. Any management agreement must allow termination by either party, without penalty or termination fee, with cause upon 30 days prior written notice, and without cause upon 90 days prior written notice. 15.7 Duration of Covenants. The covenants, conditions, restrictions, easements, liens and charges contained in this Declaration shall be perpetual, subject only to termination as provided in the Declaration or the Act. 44 4916-4537-0263, v. 10 15.8 Allocation of Risk. To the fullest extent permitted by law, Unit Owners assume the risk of existing conditions disclosed or reasonably discoverable upon inspection, subject only to statutory warranties and remedies that may not be waived under Minnesota law. 15.9 No Representation of Modernization. Except as expressly required by applicable law or expressly stated in the Disclosure Statement delivered to a purchaser, neither Declarant nor the Association makes any representation that the Buildings or improvements have been modernized, upgraded, or brought to current construction standards. Unit Owners acquire their Units subject to the condition of the Property as disclosed pursuant to the Act and as otherwise permitted by law. 15.10 Declarant not Liable. The Declarant will not be liable for any damage, loss, or prejudice suffered or claimed by any person on account of; 15.10.1 The approval or disapproval of any plans, drawings, and specifications, whether or not in any way defective; 15.10.2 The construction of any Improvement or performance of any work, whether or not pursuant to approved plans, drawings, and specifications; 15.10.3 The development of any Unit within the Property; or 15.10.4 Waiver, variance, modification, or termination of this Declaration. 15.11 Notice of Ownership. Every Owner shall give written notice to the Association of the Owner’s name and address for notice purposes (identifying the Unit Owner has acquired) within thirty (30) days after becoming a Unit Owner. 15.12 Declaration Runs with the Land. The Property, and each Unit, will be held, sold, conveyed, occupied, developed and maintained in accordance with this Declaration. This Declaration will run with the land and will be binding upon any party having any right, title, or interest in or to any part or parcel of the Property, their heirs, assigns, lessees, licensees, invitees, successors in interest and personal representatives until this Declaration is terminated in accordance with its provisions. 15.13 Not a Public Dedication. Except as specifically provided in this Declaration, nothing contained in this Declaration will be deemed to be a gift or dedication of any portion of the Property to the City or the general public for any public use or purpose whatsoever. (Signature page follows) 45 4916-4537-0263, v. 10 The undersigned has executed this Declaration the day and year first set forth above in accordance with the Act’s requirements. Bayou Alley Flats LLC By Jon Petters, Chief Manager STATE OF MINNESOTA ) ) SS COUNTY OF STEARNS ) This instrument was acknowledged before me this ____ day of ___________, 2026, by Jon Petters, the Chief Manager of Bayou Alley Flats LLC, a Minnesota limited liability company, on the limited liability company’s behalf. Notary Public THIS INSTRUMENT DRAFTED BY: RINKE-NOONAN (ISL) 1015 West St. Germain, Suite 300 P.O. Box 1497 St. Cloud, MN 56302 (320) 251-6700 4916-4537-0263, v. 10 EXHIBIT A PROPERTY DESCRIPTION NOTE: Each Unit’s identifier is its Unit number, the Condominium Name, and CIC Number as shown on the CIC Plat. Units 101-105, Units G1-G14, Units 201-207, Units 301-307, Common Interest Community Number 122, a Condominium Bayou Alley Flats, Stearns County, Minnesota. 4916-4537-0263, v. 10 EXHIBIT B Allocation of Interest in Common Elements, Common Expense Liability and Voting Unit Designation Percentage Interest TOTAL 100% TO BE PROVIDED BY SURVEYOR BASED UPON FINAL SIZE OF EACH UNIT STAFF MEMO Prepared by: Community Development Meeting Date: 06/15/26 ☒ Consent Agenda Item ☐ Regular Agenda Item Agenda Item # 4g Reviewed by: Legal Item: Bayou Alley Flats TIF Amendment Council Priority: ☐ Dispensary ☐ Industrial Park Expansion ☐ Housing ☐ Public Safety Facility/Safe Crossing of CSAH 75 ☒ N/A ACTION REQUESTED Consent gives automatic approval to Amendment and Restated Development Agreement BOARD/COMMISSION/COMMITTEE RECOMMENDATION N/A PREVIOUS COUNCIL ACTION Original TIF agreement for the parcel was approved in December of 2017. REFERENCE AND BACKGROUND The owner of Bayou Alley Flats (24 North Lofts) is requesting an amendment to the original TIF agreement due to the conversion of the property from leased units to individually owned units. Under the current agreement, the TIF obligations are assigned to the current owner, Jon C. Petters. With the creation of the Common Interest Community (CIC), those obligations will transfer to the newly formed Association. Item 4f on the agenda would approve the CIC plat establishing the new ownership structure. BUDGET IMPACT The change would not impact the duration of the TIF district nor any of the TIF reimbursement amounts. STAFF RECOMMENDED ACTION Approve Amendment and Restated Development Agreement. SUPPORTING DATA/ATTACHMENTS First Amendment and Restated Development Agreement. FIRST AMENDMENT TO AMENDED AND RESTATED DEVELOPMENT AGREEMENT This First Amendment to Amended and Restated Development Agreement (the “Amendment ”) is entered into effective as of __June 15th__, 2026 (the “Effective Date”), by and between the City of St. Joseph, Minnesota, a municipal corporation organized and existing under the laws of the State of Minnesota (“City”); and Bayou Alley Flats, LLC, a Minnesota limited liability company (“Developer ”); and the holder of the TIF Note, Jon C. Petters (“Holder ”). RECITALS A. The City and Developer entered into an Amended and Restated Development Agreement dated effective October 24, 2017 (the “Agreement”), concerning the real property now legally described on the attached Exhibit A (“Development Property”). B. The Agreement provides for tax increment financing by the City on the Development Property, and the TIF financing is to be provided by the City by means of a tax increment revenue note (the “TIF Note”). C. Developer assigned all of its rights to payments to be received by Developer under the TIF Note from the City, as it relates to the Development Property, to Holder, pursuant to an Assignment of Tax Increment Revenue Note dated December 18, 2017. D. The City, Developer and Holder wish to amend the Agreement as set forth in this Amendment to allow Developer to pursue converting the Development Property to a condominium. AGREEMENT Now, therefore, for good and valuable consideration, the receipt and sufficiency of which are acknowledged, the parties agree that the Agreement is amended as follows: 1. Condominium Conversion; Approval. The City acknowledges and consents to the creation of a common interest community pursuant to Minnesota Statutes Chapter 515B (the “CIC”) with respect to the Development Property, including the subdivision of the Development Property into units and common elements and the conveyance, sale, and resale of such units. The creation of the CIC and the transfer of units is approved by the City. 2. Successor Responsible Party; Association. Upon creation of the CIC, the association formed in connection therewith (the “Association”) shall be responsible for the ongoing operation, maintenance, and compliance with the covenants and obligations of the Agreement relating to the use and operation of the Development Property. The City agrees to look to the Association as the primary party responsible for such ongoing compliance. Each owner of a unit within the CIC, together with their respective successors and assigns, shall remain directly responsible for compliance, with respect to such owner’s unit, with the covenants and obligations set forth in the Agreement, including without limitation: a) the timely payment of all real estate taxes and assessments levied against such unit; b) compliance with all use restrictions applicable to such unit; and c) the obligation not to seek or support any reduction in market value for property tax purposes in violation of the Agreement. The Association shall have the responsibility to enforce such obligations against unit owners in accordance with the governing documents of the CIC. 3. Unit-Level Matters Not Events of Default. Notwithstanding anything in the Agreement to the contrary, the following shall not constitute an Event of Default under the Agreement: a) failure of an individual unit owner to pay real estate taxes or assessments with respect to such owner’s unit; b) mortgage foreclosure or enforcement actions affecting an individual unit; or c) breach of any obligation by an individual unit owner; provided that such matters do not, in the aggregate, result in a material noncompliance of the Development Property, taken as a whole, with the requirements of the Agreement. A failure by an individual unit owner shall be addressed at the Association level and shall not, in and of itself, constitute an Event of Default unless such failure results in material noncompliance of the Development Property as a whole. 4. Real Estate Taxes. Neither the Association nor Developer shall seek, nor shall either permit any individual unit owner to seek, a reduction in the market value as determined by the County Assessor of the Project or other facilities, if any, that it constructs on the Development Property, pursuant to the provisions of the Agreement, for so long as the TIF Note remains outstanding. If an individual unit owner (a) seeks a reduction in the market value of its property, or (b) does not timely pay all real estate taxes and assessments levied against such unit, the City may suspend payments due under the TIF Note until the actual amount of the reduction is determined, whereupon the City will make the suspended payments less any amount that the City is required to repay the County as a result of any reduction in market value of the Development Property. During the period that the payments are subject to suspension, the City may make partial payments on the TIF Note if it determines, in its sole and absolute discretion that the amount retained will be sufficient to cover any repayment which the County may require. The City's suspension of payments on the TIF Note pursuant to this Section shall not be considered a default under the Agreement. The Developer or Association shall not be entitled to any cure period and the City may suspend its payments under the TIF Note pursuant to this Section immediately and without notice. The Developer or Association may however elect to cure any such nonpayment, and the City may resume payment of the TIF Note upon the City’s determination of the sufficiency of such payments. 5. Notice and Opportunity to Cure. The Developer and Holder will be entitled to written notice of any Event of Default under the Agreement. The Developer and/or the Holder will have the right, but not the obligation, to cure any default within the applicable cure period set forth in the Agreement, as reasonably extended to allow the Developer and/or the Holder to work with the Association or applicable unit owner to effect such cure. Other than as set forth in paragraph 4, the City agrees that it shall not suspend or terminate payments under the TIF Note or exercise remedies under the Agreement unless and until such notice has been provided and the applicable cure period has expired. 6. Transfers; No Effect on TIF Note. The conveyance, transfer, or encumbrance of any unit or portion of the Development Property following creation of the CIC shall not: a) constitute an Event of Default under the Agreement; b) affect the validity or enforceability of the TIF Note; or c) reduce or impair the City’s obligation to make payments under the TIF Note in accordance with its terms. 7. Use of Development Property. The City acknowledges and agrees that the use restrictions set forth in the Agreement apply to the Development Property as a whole and shall be deemed satisfied so long as the Development Property, taken as a whole, is operated in a manner consistent with the uses contemplated by the Agreement. Separate ownership or use of individual units shall not, in and of itself, constitute a violation of such use restrictions. 8. Development Property; Post-CIC Treatment. Following creation of the CIC, all references in the Agreement to the “Development Property” shall be deemed to include all units and common elements comprising the CIC. The parties acknowledge that the creation of the CIC is not intended to alter the treatment of the Development Property for purposes of the Tax Increment Financing District or the calculation of Tax Increments. 9. Ratification and Clarification. Except as expressly amended hereby, the Agreement remains in full force and effect and is hereby ratified and confirmed. The parties acknowledge that the Project, as constructed and presently existing, satisfies the requirements of the Agreement and that the TIF Note has been duly issued in accordance with its terms. The parties acknowledge that a bakery has replaced the referenced gallery in the Agreement. The parties further acknowledge that “Phase II” of the Project, as described in the Agreement, was not ultimately undertaken.. The parties agree that such reconfiguration and the non-development of Phase II: a) do not constitute a failure to complete the Project; b) do not constitute a default or non-compliance under the Agreement; and c) shall not be used as a basis to suspend, reduce, or terminate payments under the TIF Note. 10. Capitalized Terms. Unless otherwise defined herein, all capitalized terms shall have the same meaning set forth in the Agreement. 11 . Counterparts. This Amendment may be signed in any number of counterparts, all of which taken together shall constitute one and the same instrument. (Signature pages to follow) SIGNATURE PAGE TO FIRST AMENDMENT TO AMENDED AND RESTATED DEVELOPMENT AGREEMENT CITY OF ST. JOSEPH, MINNESOTA By __________________________ Adam Scepaniak Its Mayor By ___________________________ David Murphy Its Administrator STATE OF MINNESOTA ) ) SS COUNTY OF STEARNS ) On this ______ day of _________ 2026, before me, a Notary Public within and for said County, personally appeared Adam Scepaniak, to me personally known, who, being by me duly sworn did say that he is the Mayor of the City of St. Joseph, Minnesota, and that said instrument was signed on behalf of said City and he acknowledged said instrument to be the free act and deed of said City. __________________________________ Notary Public STATE OF MINNESOTA ) ) SS COUNTY OF STEARNS ) On this ______ day of _________ 2026, before me, a Notary Public within and for said County, personally appeared David Murphy to me personally known, who, being by me duly sworn did say that he is the Administrator of the City of St. Joseph, Minnesota, and that said instrument was signed on behalf of said City and he acknowledged said instrument to be the free act and deed of said City. __________________________________ Notary Public SIGNATURE PAGE TO FIRST AMENDMENT TO AMENDED AND RESTATED DEVELOPMENT AGREEMENT BAYOU ALLEY FLATS, LLC By_______________________________ Jon C. Petters Its Chief Executive Officer STATE OF MINNESOTA ) ) SS COUNTY OF STEARNS ) On this _____ day of ____________, 2026, before me, a Notary Public for this County, personally appeared Jon Petters, who, being by me duly sworn, did say that he is the Chief Executive Officer of Bayou Alley Flats, LLC, a Minnesota limited liability company, and that this instrument was signed on behalf of said limited liability company by authority of its members and acknowledged said instrument to be the free act and deed of said limited liability company. Notary Public SIGNATURE PAGE TO FIRST AMENDMENT TO AMENDED AND RESTATED DEVELOPMENT AGREEMENT _______________________________ Jon C. Petters STATE OF MINNESOTA ) ) SS COUNTY OF STEARNS ) On this _____ day of ____________, 2026, before me, a Notary Public for this County, personally appeared Jon Petters, and he acknowledged said instrument to be his free act and deed. Notary Public THIS INSTRUMENT DRAFTED BY: RINKE NOONAN 1015 West St. Germain Street, Ste. 300 P.O. Box 1497 St. Cloud, MN 56302 (320) 251-6700 EXHIBIT A DESCRIPTION OF DEVELOPMENT PROPERTY Property located in the City of St. Joseph, Stearns County, Minnesota with the following Parcel Identification Numbers: Lot 1, Block 1, BAYOUT ALLEY FLATS, according to the plat and survey thereof on file and of record in the office of the County Recorder, in and for Stearns County, Minnesota. TOGETHER WITH that part of the northerly 64.00 feet of Lots 1, 2 and 3, Block 10, TOWNSITE OF ST JOSEPH, Stearns County, Minnesota, according to the recorded plat thereof, lying westerly of the following described Line A, and lying southerly of the following described Line B. Line A Beginning at a point on the north line of said Lot 3 distant 4.93 feet westerly of the northeast corner of said Lot 3, as measured along said north line; thence southerly 64.03 feet, more or less, to the point of intersection of a line distant 64.00 feet southerly of, as measured at a right angle to and parallel with the northerly line of said Lot 3, and the east line of said Lot 3, and there terminating, Line B Commencing at the most westerly corner of said Block 10; thence South 17 degrees 09 minutes 25 seconds East, assumed bearing along the westerly line of said Block 10 for 60.00 feet to a line distant 60.00 feet southerly of, as measured at a right angle to and parallel with the north line of said Lots 1 and 2, said point also being the point of beginning; thence North 73 degrees 20 minutes 16 seconds East, along the last described parallel line and its easterly extension for 178.05 feet to the afore described Line A and there terminating. STAFF MEMO Prepared by: Community Development Meeting Date: 06/15/26 ☒ Consent Agenda Item ☐ Regular Agenda Item Agenda Item # 4h Reviewed by: Attorney and Finance Item: Revolving Loan Fund – The Good Food Good People Group Council Priority: ☐ Dispensary ☐ Industrial Park Expansion ☐ Housing ☐ Public Safety Facility/Safe Crossing of CSAH 75 ☒ N/A ACTION REQUESTED Consent gives automatic approval of Revolving Loan Fund agreement. If item is pulled from consent staff requests motion on the Loan agreement. BOARD/COMMISSION/COMMITTEE RECOMMENDATION The EDA Finance Team met on May 18th and recommended advancing the RLF request to the EDA Board. The EDA Board recommended unanimous approval of the loan request at their May 19th meeting (5-0). All conditions as recommended by the EDA Board have been included in the loan agreement and supplemental attachments. PREVIOUS COUNCIL ACTION None REFERENCE AND BACKGROUND The Good Food Good People Group, consisting of Krewe and Flour & Flower, is requesting a $60,000 loan from the City’s Revolving Loan Fund (RLF). The proposed loan would carry the standard 3% interest rate with a 10-year term. The funds will provide gap financing to allow the businesses to purchase and own the spaces they currently occupy within the 24 North Lofts building, as the property owner is selling the individual suites. Acquisition of land and buildings is an eligible use under the RLF guidelines. The RLF currently has a balance of $142,055 with two active outstanding loans: MN Street Market (scheduled to be paid off by September 15, 2027) and Krewe (scheduled to be paid off by January 1, 2027, with approximately $5,000 remaining). The last RLF loan issued by the City was to MN Street Market on September 15, 2020. Approval of the loan is contingent upon Council approval of Item 4f. Item 4f would establish the individual suites within the 24 North Lofts building as separately owned units through a CIC plat. The City’s attorney has reviewed and prepared the loan agreement and all supporting documents. The agreement and documents have been reviewed by the applicant, and all concerns have been addressed. Of note is a personal guaranty, promissory note, commercial guaranties from both businesses, and mortgage will be required to be executed by the applicant as a condition of approval for the loan. BUDGET IMPACT Per loan agreement - $60,000 paid back to the city over the course of ten years with 3% interest to the city. STAFF RECOMMENDED ACTION Approval of loan agreement with the Good Food Good People Group. SUPPORTING DATA/ATTACHMENTS Loan agreement RLF guidelines The Personal Guaranty, Promissory Note, Commercial Guaranty (Flour and Flower), Commercial Guaranty (Krewe), and Mortgage documents are not included in the Council packet, as execution of these documents is contingent upon approval of the loan agreement. The Good Food Good People Group, LLC| Loan Agreement 1 AGREEMENT FOR LOAN OF THE ST. JOSEPH REVOLVING LOAN FUND THIS AGREEMENT is made and entered into as the _____ day of June, 2026 by and between the City of St. Joseph, hereinafter called "City” and The Good Food Good People Group, LLC, a Minnesota limited liability company, hereinafter referred to as "Borrower," and Mateo Mackbee and Erin Mackbee, personally, hereinafter referred to as “Guarantor”. RECITALS WITNESSETH: WHEREAS, the Borrower has applied to the City of St. Joseph for a $60,000.00 loan from the City’s Revolving Loan Fund; and WHEREAS, the City of St. Joseph has approved a low-interest loan to Borrower in the amount of $60,000.00 conditioned on Borrower meeting certain obligations as set out in this agreement; NOW, THEREFORE, it is agreed by and between the parties hereto as follows: ARTICLE 1 DEFINITIONS SECTION 1.1. DEFINITIONS. In this Agreement, unless a different meaning clearly appear from the context: 1. CITY means the City of St. Joseph. 2. COLLATERAL means the Development Property. 3. BORROWER shall mean The Good Food Good People Group, LLC, a Minnesota limited liability company. 4. DEVELOPMENT PROPERTY means the real property located at 26 College Ave N, St. Joseph, Stearns County, Minnesota and legally described in Exhibit A attached hereto and incorporated herein. 5. GUARANTORS shall mean Mateo Mackbee and Erin Mackbee (personal guarantors) and Krewe Restaurant, Inc. and Flour & Flower Bakery, LLC (commercial guarantors). The Good Food Good People Group, LLC| Loan Agreement 2 6. INITIAL DISBURSEMENT DATE means the date of the first disbursement of any Loan Proceeds by the City to the Borrower. 7. LOAN DOCUMENTS means this Loan Agreement, Promissory Note, Mortgage and Personal Guaranty and Commercial Guaranties required under the terms of this Loan Agreement. 8. PROJECT shall mean purchase of the Development Property which shall be leased by Borrower to Krewe Restaurant, Inc./Flour & Flower Bakery, LLC. ARTICLE 2 FINANCING FOR PROJECTS SECTION 2.1. PROJECT FINANCING. The Borrower represents that it needs the funds in order to implement the Project, and that it seeks a low interest loan from the City to implement the Project. SECTION 2.2. BORROWER'S EQUITY AND OTHER FINANCING. The Borrower shall commit $215,100 in equity and $1,134,900.00 in primary financing to be used for the completion of the Development Project. The City agrees that its loan and security interests shall be subordinate to Borrower’s primary financing. SECTION 2.3. RLF LOAN. The City has created a special fund called the Revolving Loan Fund (RLF), which will provide $60,000.00 in financing for the project ARTICLE 3 LOAN TERMS AND CONDITIONS SECTION 3.1. BASIC LOAN TERMS. The principal amount of the loan by the City to the Borrower shall be in the amount of $60,000.00. The loan shall bear interest at rates shown in Section 5.4 below and shall be repaid according to the promissory note, attached hereto as Exhibit B and incorporated by this reference. SECTION 3.2. PREPAYMENT. Prepayment of the entire loan balance may occur at any time during the loan without penalty. SECTION 3.3. ASSIGNMENT. Neither Borrower nor Guarantors shall assign their rights or interests or any part therein or their rights or interests in this Loan Agreement, the Project or any part thereof. SECTION 3.4. SECURITY INTERESTS. The Borrower shall provide the following security interests for the loan: a mortgage in the Development Property. In addition, the Guarantors shall provide personal and commercial guaranties. The Borrower and The Good Food Good People Group, LLC| Loan Agreement 3 Guarantors acknowledge and agree that the mortgage, commercial and personal guaranties are given for good and adequate consideration for this Loan as the personal guarantors are the majority stakeholders in the Borrower and the commercial guarantors and the availability of the loan to the Borrower, which is the subject of this Agreement, is of direct benefit to the Borrower and Guarantors. ARTICLE 4 DEFAULT SECTION 4.1. DEFAULT. Borrower shall be in default under this Contract upon the happening of any of the following events: (a) the Borrower fails to pay when due any amount payable on the Loan and such nonpayment is not remedied within ten (10) business days after written notice thereof to the Borrower by the City; (b) the Borrower is in breach of any material obligation or agreement under this Agreement (other than nonpayment of any amount payable on the Loan) and remains in breach for thirty (30) business days after written notice thereof to the Borrower by the City; provided, however, that if such breach shall be incapable of being reasonably cured within such thirty (30) business days after notice, and if the Borrower commences and diligently prosecutes the appropriate steps to cure such breach, no default shall exist so long as the Borrower are proceeding to cure such breach; (c) if any material covenant, warranty, or representation of the Borrower shall prove to be untrue in any material respect, provided such covenant, warranty or representation of the Borrower remains untrue in any material respect for thirty (30) business days after written notice thereof to the Borrower by the City; provided, however, that if such untruth shall be incapable of being reasonably corrected within such thirty (30) business days after notice, and if the Borrower commences and diligently prosecutes the appropriate steps to correct such untruth, no default shall exist so long as the Borrower are so proceeding to correct such untruth; (d) the Borrower, on or after the Initial Disbursement Date, fails to pay its debts as they become due, makes an assignment for the benefit of its creditors, admits in writing its inability to pay its debts as they become due, files a petition under any chapter of the Federal Bankruptcy Code or any similar law, state or federal, now or hereafter existing, becomes "insolvent" as that term is generally defined under the Federal Bankruptcy Code, files an answer admitting insolvency or inability to pay its debts as they become due in any involuntary bankruptcy case commenced against it, or fails to obtain a dismissal of such case within sixty (60) days after its commencement or convert the case from one chapter of the Federal Bankruptcy Code to The Good Food Good People Group, LLC| Loan Agreement 4 another chapter, or be the subject of an order for relief in such bankruptcy case, or be adjudged a bankrupt or insolvent, or has a custodian, trustee, or receiver appointed for it, or has any court take jurisdiction of its property, or any part thereof, in any proceeding for the purpose of reorganization, arrangement, dissolution, or liquidation, and such custodian, trustee, or receiver is not discharged, or such jurisdiction is not relinquished, vacated, or stayed within sixty (60) days of the appointment; (e) a final judgment is entered against the Borrower that the City reasonably deems will have a material, adverse impact on the Borrower’s ability to comply with the Borrower’s obligations under this Agreement; (f) there is a loss, theft, substantial damage, or destruction of all or any part of the Collateral that is not remedied to the City's satisfaction within sixty (60) business days after written notice thereof by the City to the Borrower; (g) the Borrower transfers all or part of the Development Property, either voluntarily or involuntarly; or (h) the Borrower is in default under the terms of its primary lending. SECTION 4.2. REMEDIES UPON DEFAULT. (a) In the event of a default and the failure to cure it in the time allotted therefore, the City shall have the right at its option and without demand or notice, to declare all or any part of the loan including but not limited to the promissory note immediately due and payable; the City may foreclose its mortgage by advertisement or by action, recover payment under the guaranties, and in addition to the rights and remedies granted hereby, the City may exercise all of the rights and remedies of the City under the Uniform Commercial Code or any applicable law. (b) All of City’s rights and remedies shall be cumulative and may be exercised individually or concurrently against either borrower or guarantors. An election to pursue any particular person or entity and particular remedy shall not exclude the City’s right to pursue another remedy, until such time as the City is made whole. No course of dealing between the City and the Borrower and/or Guarantor or any failure or delay by the City in exercising any right or remedy hereunder, shall operate as a waiver of any of the City’s rights or remedies. No single or partial exercise of any right or remedy shall operate as a waiver or preclude the exercise of other rights or remedies. ARTICLE 5 The Good Food Good People Group, LLC| Loan Agreement 5 LOAN DISBURSEMENT PROVISIONS SECTION 5.1. DISBURSEMENT OF LOAN FUNDS. Loan disbursements not to exceed the amount of $60,000.00 shall be for the Project. The loan funds shall be disbursed to Borrower upon the signed execution of this agreement, the Promissory Note and mortgage, and the execution of the personal and commercial guaranties and in accordance with this agreement. SECTION 5.2. PROJECT TIME FRAME (SCHEDULE). The Borrower shall complete the Project within three (3) months of the execution of this Agreement unless an extension of the project time frame is approved by the City. SECTION 5.3. LOAN TERMS – REPAYMENT SCHEDULE. The term of the Loan shall be ten (10) years, commencing as of the Initial Disbursement Date. The Loan shall bear interest at a rate of Three percent (3%) per annum and interest shall commence to accrue as of the Initial Disbursement Date. SECTION 5.4. LOAN REPAYMENTS SCHEDULE. Payments of principal and interest shall commence on the ___ day of the month immediately following the Initial Disbursement Date, and shall continue on the ___ day of each and every month thereafter until paid in full. Such payments shall fully amortize the Loan over ten (10) years; provided, however, the entire remaining unpaid balance of principal and interest shall be due and payable in full on the one hundred twentieth (120th) month following the Initial Disbursement Date. SECTION 5.5. ADVERSE CHANGE. If there has been any adverse material change in the Borrower’s financial conditions, organization, operations, or its ability to repay the project financing, the City may withhold disbursement of funds until such time as the City receives such financial information and assurances acceptable to the City that Borrower will be able to repay the loan. ARTICLE 6 PROVISION OF EVIDENTIARY MATERIAL REQUIREMENT SECTION 6.1. The Borrower must provide the City with necessary documentation that the RLF loan proceeds have been used for the items and purposes stated in the RLF application. ARTICLE 7 NONDISCRIMINATION The Good Food Good People Group, LLC| Loan Agreement 6 SECTION 7.1. NONDISCRIMINATION. The provisions of Minnesota Statutes, §181.59, as amended, which relate to civil rights and discrimination, shall be considered a part of this Agreement as though wholly set forth herein. ARTICLE 8 SECURITY AGREEMENT Section 8.1. Except as set forth in any existing or future agreement executed by the City: the Borrower is the owner of the Collateral, or will be the owner of the Collateral hereafter acquired, free of all security interests, liens and encumbrances other than the mortgage lien of its primary lender(s), and the mortgage lien to be granted to City (“Permitted Encumbrances”); and shall not permit any security interest, lien or encumbrance, other than the Permitted Encumbrances to attach to any Collateral without the prior written consent of the City; and shall defend the Collateral against the claims and demands of all persons and entities other than the City, and shall promptly pay all taxes, assessments and other government charges upon or against the Collateral. Section 8.2. The Borrower shall: (i) keep the improvements to the Collateral in good condition and repair, normal depreciation excepted; (ii) from time to time make necessary capital improvements; (iii) promptly notify the City of any loss of or material damage to any Collateral; (iv) not permit any Collateral to be used or kept for any unlawful purpose or in violation of any federal, state or local law; (v) keep all tangible Collateral insured in such amounts, against such risks, and (vi) at the City's request, promptly execute, endorse and deliver such financing statements and other instruments, documents, control agreements, chattel paper and writings and take such other actions deemed by the City to be necessary or desirable to establish, protect, perfect or enforce the City and the rights of the City under this Agreement and applicable law, and pay all costs of filing financing statements and other writings in all public offices where filing is deemed by the City to be necessary or desirable. Section 8.3. The Borrower authorizes the City to file all of the Borrower’s financing statements and amendments to financing statements, and all terminations of the filings of other secured parties, all with respect to the Collateral, in such form and substance as the City, in its sole discretion, may determine. Section 8.4. All of the City’s advances, fees, charges, costs and expenses, including but not limited to audit fees and expenses and reasonable attorneys' fees and legal expenses, in connection with the Collateral and in the protection and exercise of any rights or remedies hereunder, together with interest thereon at the highest rate then applicable to any of the Loan, shall be secured hereunder and shall be paid by the Borrower to the City on demand. The Good Food Good People Group, LLC| Loan Agreement 7 ARTICLE 9 BORROWER’S ACKNOWLEDGEMENTS, REPRESENTATIONS, AND WARRANTS SECTION 9.1, ACKNOWLEDGEMENTS. The Borrower acknowledges that the City is loaning its funds from its Revolving Loan Fund. The Borrower further acknowledges that the Borrower has made certain representations and statements as to those activities of the Project to be carried out and completed by the Borrower. The Borrower acknowledges that nothing contained in this Agreement, nor any act of the City shall be deemed or construed to create any relationship of third-party beneficiary, principal and agent, limited or general partnership, or joint venture. SECTION 9.2, REPRESENTATIONS AND WARRANTIES. Borrower warrants and represents, in connection with the Loan and for the benefit of the City, that: (a) The Borrower acknowledges that the City, in selecting the Borrower as recipient of revolving loan funds, relied in material part upon the assured completion of the Project to be carried out by the Borrower, and the Borrower assures the City that said Project will be carried out by the Borrower. (b) The Borrower warrants that to the best of its knowledge, it has obtained all federal, state, and local governmental approvals, reviews, and permits required by law to be obtained in connection with the Project. (c) The Borrower warrants that it shall keep and maintain books, records and other documents relating directly to the receipt and disbursements of revolving loan proceeds and that any duly authorized representative of the City shall, at all reasonable times, have access to and the right to inspect, copy, audit, and examine all such books, records and other documents of the Borrower necessary to determine compliance with this agreement until the conclusion of all issues arising out of this loan. (d) The Borrower warrants that it has fully complied with all applicable state and federal laws pertaining to its business and will continue said compliance throughout the terms of this Agreement. If at any time notice of noncompliance is received by the Borrower, it agrees to take any action to comply with the State and Federal law in question. (e) The Borrower warrant that the $60,000.00 loan, which is the subject of this agreement, is necessary to create job(s) as described under this Agreement and is necessary for the successful completion of the Development Project. The Good Food Good People Group, LLC| Loan Agreement 8 ARTICLE 10 OTHER SPECIAL CONDITIONS SECTION 10.1, WORKERS COMPENSATION INSURANCE. Borrower’s tenants hav obtained worker’s compensation insurance as required by Minnesota Law. SECTION 10.2, PAYMENT OF CITY’S COSTS. Borrower shall pay reasonable attorneys fees incurred in preparing all documentation related to this loan and all other costs incurred by the City in processing this loan request. SECTION 10.3. BUSINESS WITH THE STATE OF MINNESOTA/STATE TAX LAWS. The Borrower is required by Minnesota Law to provide its Minnesota tax identification number if it does business with the State of Minnesota. This information may be used in the enforcement of Federal and State tax laws. Supplying these numbers could result in an action to require the Borrower to file State tax returns and pay delinquent State tax liabilities. This Agreement will not be approved unless these numbers are provided. These numbers will be available to Federal and State tax authorities and State personnel involved in the payment of State obligations. The Good Food Good People Group, LLC Minnesota Tax ID: ______________ Federal Employer ID: ____________ SECTION 10.4. EFFECT ON OTHER AGREEMENTS. Nothing in this Agreement shall be construed to modify any term of any other agreement to which the City and the Borrower are parties. SECTION 10.4. RELEASE AND INDEMNIFICATION COVENANTS. Except for any breach of the representations and warranties of the City or the negligence or other wrongful act or omission of the following named parties, the Borrower agree to protect and defend the City and the governing body members, officers, agents, servants, and employees thereof, now and forever, and further agrees to hold the aforesaid harmless from any claim, demand, suit, action, or other proceeding whatsoever by any person or entity whatsoever arising or purportedly arising from the Project and the Borrower' activities on the Development Property. SECTION 10.5. MODIFICATIONS. This Agreement may be modified solely through written amendments hereto executed by the Borrower and the City. SECTION 10.6. NOTICES AND DEMANDS. Any notice, demand, or other communication under this Agreement by either party to the other shall be sufficiently given or delivered only if it is dispatched by registered or certified mail, postage prepaid, return receipt requested, or delivered personally: The Good Food Good People Group, LLC| Loan Agreement 9 (a) as to the City: City of St. Joseph ATTN: David Murphy, City Administrator 75 Callaway St E St. Joseph, MN 56374 (b) as to the Borrower: The Good Food Good People Group, LLC ATTN: Mateo Mackbee 916 6th Ave N St. Cloud, MN 56303 or at such other address with respect to any party as that party may, from time to time, designate in writing and forward to the others as provided in this Section 10.6. SECTION 10.7. CONFLICT OF INTERESTS; REPRESENTATIVES NOT INDIVIDUALLY LIABLE. No officer or employee of the City may acquire any financial interest, direct or indirect, in this Agreement, the Project or in any contract related to the Project. No officer, agent, or employee of the City shall be personally liable to the Borrower or any successor in interest in the event of any default or breach by the City or for any amount that may become due to the Borrower or on any obligation or term of this Agreement. SECTION 10.8. BINDING EFFECT. The covenants and agreements in this Agreement shall bind and benefit the heirs, executors, administrators, successors, and assigns of the parties to this Agreement. SECTION 10.9. TITLES OF ARTICLES AND SECTIONS. Any titles of the several parts, Articles, and Sections of this Agreement are inserted only for convenience of reference and shall be disregarded in construing or interpreting any of its provisions. SECTION 10.10. COUNTERPARTS. This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same instrument. SECTION 10.11. CHOICE OF LAW AND VENUE. This Agreement shall be governed by and construed in accordance with the laws of the state of Minnesota without regard to its conflict of laws provisions. Any disputes, controversies, or claims arising out of this Agreement shall be heard in the state or federal courts of Minnesota, and all parties to this Agreement waive any objection to the jurisdiction of these courts, whether based on convenience or otherwise. SECTION 10.13. WAIVER. The failure or delay of any party to take any action or assert any right or remedy, or the partial exercise by any party of any right or remedy shall not be deemed to be a waiver of such action, right, or remedy if the circumstances creating such action, right, or remedy continue or repeat. The Good Food Good People Group, LLC| Loan Agreement 10 SECTION 10.14. ENTIRE AGREEMENT. This Agreement, with the exhibits hereto, constitutes the entire agreement between the parties pertaining to its subject matter and it supersedes all prior contemporaneous agreements, representations, and understandings of the parties pertaining to the subject matter of this Agreement. SECTION 10.15. SEPARABILITY. Wherever possible, each provision of this Agreement and each related document shall be interpreted so that it is valid under applicable law. If any provision of this Agreement or any related document is to any extent found invalid by a court or other governmental entity of competent jurisdiction, that provision shall be ineffective only to the extent of such invalidity, without invalidating the remainder of such provision or the remaining provisions of this Agreement or any other related document. SECTION 10.16. IMMUNITY. Nothing in this Agreement shall be construed as a waiver by the City of any immunities, defenses, or other limitations on liability to which the City is entitled by law, including but not limited to the maximum monetary limits on liability established by Minnesota Statutes, Chapter 466. IN WITNESS WHEREOF, the City, Borrower and Guarantors have caused this Agreement to be duly executed in their names and on their behalf as of the date first above written. CITY OF ST. JOSEPH (SEAL) _____________________________ Adam Scepaniak, Mayor ______________________________ David Murphy, City Administrator State of Minnesota ) ) s.s. County of Stearns ) The foregoing instrument was acknowledged before me this ______ day of June, 2026 by Adam Scepaniak, Mayor and David Murphy, City Administrator of the City of St. Joseph. _________________________________ Notary Public The Good Food Group, LLC By______________________________ Mateo Mackbee, Manager The Good Food Good People Group, LLC| Loan Agreement 11 GUARANTORS: ______________________________ Mateo Mackbee ______________________________ Erin Mackbee Krewe Restaurant, Inc. By____________________________ Mateo Mackbee, CEO Flour & Flower Bakery, LLC By_____________________________ Erin Mackbee, Manager State of Minnesota ) ) s.s. County of Stearns ) The foregoing instrument was acknowledged before me this _______ day of June, 2026 by Mateo Mackbee, personally and as Manager of The Good Food Group, LLC., a Minnesota limited liability company, Borrower and as CEO of Krewe Restaurant, Inc., Guarantor _________________________________ Notary Public State of Minnesota) ) s.s. County of Stearns ) The foregoing instrument was acknowledged before me this _______ day of June, 2026 by Erin Mackbee, individually, and on behalf of Flour & Flower Bakerly, LLC Guarantor. _________________________________ Notary Public The Good Food Good People Group, LLC| Loan Agreement 12 St. Joseph Food Cooperative, Prego Properties, LLC | Exhibit A: 1 EXHIBIT A COLLATERAL (legal description) Lot 1, Block 1, Bayou Alley Flats, according to the plat thereof, Stearns County, Minnesota Krewe restaurant | Exhibit B: 2 EXHIBIT B Krewe restaurant | Exhibit B: 3 PROMISSORY NOTE U.S. $60,000.00 June ____, 2026 St. Joseph, Minnesota A. BORROWER’S PROMISE TO PAY For value received, the undersigned (the “Borrower”) promises to pay to the order of City of St. Joseph (“Lender”), at its office at the City Administrator’s Office, 75 Callaway Street E, St. Joseph, Minnesota 56374, or at any other place designated at any time in writing by the holder of this Note, in lawful money of the United States of America, the principal sum of sixty thousand dollars ($60,000.00) together with interest at a rate of three percent (3.00%) per annum. The obligations under this Note are joint and several. B. PAYMENTS Borrower shall pay Lender $579.00 per month, beginning July __, 2026 and continuing monthly thereafter until all principal and accrued interest are paid in full. If any payment is not paid when due or within ten (10) days of the due date, the Borrower shall pay Lender on demand a late charge equal to five percent (5%) of the unpaid overdue amount. C. DISBURSEMENTS The holder of the Promissory Note will disburse to the Borrower $60,000.00 upon the signed execution of the Loan Agreement of even date herewith and all security instruments required under the Loan Agreement. D. BORROWER’S RIGHT TO PREPAY The Borrower may, at any time, or from time to time, prepay the amount of principal interest outstanding in whole or part, without penalty or premium. Any such prepayment shall be applied to payment of accrued interest first and then to the outstanding principal. Accrued interest shall accumulate at the rate of three percent (3.00%) per annum. E. RIGHT TO INSPECT BOOKS, RECORDS, AND REPORTS Krewe restaurant | Exhibit B: 4 Lender and/or agent shall have the right to inspect Borrower’s books and records as it deems necessary to ensure compliance with the terms of this Note. F. BORROWER’S DEFAULT Upon the occurrence of any of the following events, the holder of this Note may, at its option, upon ten (10) days’ written notice to the Borrower, declare this Note in default and to be immediately due and payable: 1. The Borrower fails to pay when due any amount payable under this Note or the Loan Agreement and such nonpayment is not remedied within ten (10) business days after written notice thereof to the Borrower by the Lender; 2. The Borrower is in breach of any material obligation or agreement under this Note or the Loan Agreement (other than nonpayment of any amount payable on the Loan) and remains in breach in any material obligation for thirty (30) business days after written notice thereof to the Borrower by the Lender; provided, however, that if such breach shall be incapable of being reasonably cured within such thirty (30) business days after notice, and if the Borrower commences and diligently prosecutes the appropriate steps to cure such breach, no default shall exist so long as the Borrower is proceeding to cure such breach; or 3. If any material covenant, warranty, or representation of the Borrower in the Loan Agreement shall prove to be untrue in any material respect, provided such covenant, warranty or representation of the Borrower remains untrue in any material respect for thirty (30) business days after written notice thereof to the Borrower by the Lender; provided, however, that if such untruth shall be incapable of being reasonably corrected within such thirty (30) business days after notice, and if the Borrower commences and diligently prosecutes the appropriate steps to correct such untruth, no default shall exist so long as the Borrower is so proceeding to correct such untruth. This note shall also become automatically due and payable in full without notice or demand: 1. If a Borrower is dissolved; or 2. If a petition is filed by or against a Borrower under the United States Bankruptcy Code. G. PAYMENT OF LENDER’S COSTS AND EXPENSES Borrower agrees to pay all costs of collection, including attorneys’ fees, in the event this Note is not paid when due or Lender has to take legal action to enforce the terms herein. Krewe restaurant | Exhibit B: 5 H. GIVING OF NOTICES Any notice that must be given to the Borrower under this Note will be given by and effective upon delivering it or mailing it by first-class mail, postage prepaid, to the undersigned at: The Good Food Good People Group, LLC ATTN: Mateo Mackbee 916 6th Ave N St. Cloud, MN 56303 or at such other address as the Borrower may designate by notice to the holder of this Note. I. WAIVERS Presentment or other demand for payment, notice of dishonor, and protest are hereby waived by the Borrower. J. GOVERNING LAW This Note shall be governed by the substantive laws of the State of Minnesota. The Good Food Good People Group, LLC __________________________________ Mateo Mackbee, Its Manager City of St. Joseph – Revolving Loan Fund Guidelines 2023 Page 1 ST. JOSEPH ECONOMIC DEVELOPMENT AUTHORITY REVOLVING LOAN PROGRAM BACKGROUND The City of St. Joseph Economic Development Revolving Loan Fund program was originated by the state-funded Minnesota Investment Fund (MIF) program awarded through the Department of Employment & Economic Development (DEED) to the City of St. Joseph. The Revolving Loan Fund (RLF) is administered by the Economic Development Authority of the City of St. Joseph (EDA). Reuse of the RLF funds is guided by this policy and state policies in Minnesota Statute §116J.8731 and the Minnesota Business Subsidy Law (Minnesota Statutes §116J.993 and §116J.994). POLICY STATEMENT The RLF program is available to businesses in consideration of meeting the one or more objectives of the EDA. The EDA will make considerations for RLF loans on a case by case basis recognizing the importance and benefits to the community from all perspectives including economic diversity, maintaining viable tax base, expanding existing business and industry, and enhancing and retaining employment opportunities. Because it is not always possible to anticipate every type of project that may present desirable community building or preservation goals and objectives, the City Council retains the right in its discretion to approve projects and subsidies that may vary from the written principles and objectives of the EDA. PURPOSE AND GOALS The overall goal for the St. Joseph Economic Development Authority’s (EDA’s) Revolving Loan Program is to stimulate St. Joseph’s economy by providing low interest loans, giving priority to small and medium sized businesses. Revolving loan funds are to be used for business start-ups, expansion, and retentions where jobs are created or retained. This may be accomplished by the following means: 1. Creation or retention of permanent private sector jobs as measured by the wages, skills, and/or education associated with those jobs; 2. Investment in technology and equipment that increase productivity and provides for higher wages; 3. The project can demonstrate that investment of public dollars induces private funds to the local economy; 4. Stimulation or leverage of private investment to ensure economic renewal and competitiveness; 5. Increase in local tax base; 6. Businesses receiving revolving loan assistance must pay each employee total compensation, including benefits not mandated by law, that on an annualized bases is equal to at least 110% of the federal poverty levy for a family of four; 7. Businesses requesting assistance in the downtown business district will be given priority for loan funding and may include façade grants as established by the EDA; 8. Improvement of employment and economic opportunity for citizens in the region to create a reasonable standard of living; and 9. Stimulation of productivity growth through improved manufacturing or new technologies. City of St. Joseph – Revolving Loan Fund Guidelines 2023 Page 2 ADMINISTRATION The St. Joseph EDA and City Council are the policymaking and loan approval bodies for the Revolving Loan Program. The EDA is responsible for revising guidelines and recommending loan approval to the City Council. The City Council is responsible for authorizing loan. EDA staff and their assigns will be responsible for day to day administration, working with applicants on proposed projects, collecting data, performing pre-loan analysis, overseeing loan processing, preparing agreements and monitoring projects progress. ELIGIBLE APPLICANTS Eligible applicants include most industrial businesses, commercial businesses and technological service businesses. Participants must be located in the City of St. Joseph city limits. The following types of property are not eligible: • Tax delinquent • Special Assessment delinquent • Property in litigation • Property in condemnation or receivership • Tax exempt properties • Exclusively residential buildings • Businesses with going concern issues ELIGIBLE LOAN ACTIVITIES 1. Loan funds may be used for acquisition of land and/or buildings(s), rehabilitation of building(s), reconstruction, new construction, site improvements, utilities or infrastructure, and purchase of industrial equipment in connection with starting a new business or expanding an existing business. 2. Land and building must be privately owned, taxable property and proposed for commercial and/or industrial activities. 3. If building(s) are being purchased or rehabilitated with funds from the Revolving Loan Fund any/all building code violations must be remedied. The project must comply with the St. Joseph City Code including standards relating to land use. 4. Revolving loan fund assistance can be for no more than one-half of the cost of the project for projects in excess of $40,000 in value. Projects estimated at $40,000 or less may be exempted from this standard at the sole discretion of the Council and EDA. The maximum loan amount shall not exceed $40,000 and at no time will deplete available funds below $500. 5. Project must meet the public purpose which may include, but not limited to, increasing the tax base. Job retention may only be used as a public purpose in cases where job loss is specific and demonstrable. INELIGIBLE LOAN ACTIVITIES 1. Ineligible activities include the operation or expansion of a casino, sports facility when the principal tenant is a professional sports team or any firm engaged in retailing merchandise, housing projects, sexually-oriented business, and operating expenses. 2. Tax exempt organizations are not allowed to borrow revolving loan funds. 3. Loans may not be used for refinancing existing indebtedness or projects begun prior to loan application. City of St. Joseph – Revolving Loan Fund Guidelines 2023 Page 3 APPROVAL CRITERIA The grant or loan shall be based on the following criteria: 1. A gap in project financing is demonstrated. 2. Business applicants must be organized as a proprietorship, partnership, LLC, or a corporation. 3. The business must locate, remodel or expand within the corporate limits of the City of St. Joseph. 4. The project will result in the creation or retention of existing jobs. 5. The project will result in an increase in tax base. 6. The project can demonstrate the investment of public dollars induces private funds. 7. The project can demonstrate an excessive public infrastructure or improvement cost beyond the means of the affected community and private participants in the project. 8. The project provides higher wage levels to the community or will add value to current workforce skills; 9. Assistance is necessary to create new or retain existing businesses; and 10. Job/wage goals must be consistent with the Minnesota State Business Subsidy Law. LOAN TERMS/CONDITIONS Financial assistance from the Revolving Loan Program is designed to make projects economically feasible. Loan terms and conditions are determined by the information submitted in the loan application. The following are the loan conditions: 1. Loan Amount – Maximum loan amount is 90% of the available RLF balances but shall at no time exceed the gap demonstrated in project funding. At no time shall a loan exceed $40,000 for an individual project or deplete the available funds below $500. Applications will be considered on a first come, first basis based on when complete applications are received. 2. Interest Rate – The interest rate shall be set at the time of issuance and dependent upon qualifications. The interest rate shall not exceed current average lending rates for similar loans for the type of project proposed. The City of St. Joseph considers the length of the loan, collateral, job creation, wages and other factors when determining the final interest rate. At no time will the interest rate exceed 3%. 3. Term – Machinery/equipment: up to seven years. Land/buildings: up to ten years. Terms for other purposes will be flexible, but at no time longer than ten years. Loans may be paid off early at anytime without penalties. All balances will be due if the loan recipient sells or transfers any part of his/her interest in the property or fails to meet the guidelines established, unless the sale or transfer is approved by the EDA. Upon completion of the loan agreement, the Finance Director will submit a loan completion certificate to the loan recipient within 30 days of the final payment. 4. Electronic Payments – Automatic electronic payments are required for all loans established after December 31, 2017. 5. Equity – There shall be minimum ten (10) percent equity (cash or fixed assets) investment of total project costs required of all applicants requesting loan amounts greater than $10,000. It is the intention of the EDA to secure each loan wit a first or second mortgage on real estate or a UCC filing on equipment, inventory and/or receivables, and may include personal assets and guarantees. City of St. Joseph – Revolving Loan Fund Guidelines 2023 Page 4 6. Fair Market Value – The fair market value of the subsidy to the loan recipient will be the fair value determined on the benefit date. 7. Security – The business owner (those persons having 20% or more ownership in the business) will be required to provide personal guarantees for the loan amount. The guarantees will be recorded against the property at Stearns County within 120 days of RLF awards. Securities may include collateral on the equipment being financed, mortgage on a building, a line of credit from another lender, or a parent company guarantee. 8. Benefit Date – The date benefits are disbursed from the City of St. Joseph to the loan recipient. 9. Project Initiation – All loan funds must be expended within six (6) months from the date of the loan approval. An applicant may request a six (6) month extension. Extension approvals are considered by City Council. In addition, no building construction should commence until the required City permits are secured. 10. Loan Fees – A loan origination fee of 1% of the total loan amount is payable at closing. Approved borrowers are is responsible for all legal fees, document preparation costs, recording and filing fees in addition to the loan origination fee. 11. Project Costs – Borrowers are responsible for submitting final project invoices to the City’s Finance Director within two (2) months of final completion of the project. Third party verification such as invoices, sworn construction statements, lien waivers, detailed receipts, etc. will be required. Project costs incurred prior to the benefit date are ineligible loan costs. 12. Annual Reporting – Once a formal award is provided, the business is required to complete and submit an Annual Progress Report to the Community Development Director detailing the RLF goals met each April 1st until the loan agreement ends. Failure to meet goals under the loan agreement requires the loan recipient to pay back the assistance plus interest to the City of St. Joseph. The repayment may be prorated to reflect partial fulfillment of goals. 13. Data Privacy – City staff will adhere to data privacy when reviewing applicants’ business proformas and financial information as specified under the Minnesota Government Data Practices Act, particularly Minnesota Statute §13.591, Subd. 1 and 2. Information not protected under this law will become a matter of public record. 14. Conflicts of Interest – A conflict of interest shall be deemed to exist when a decision on a MIF transaction would compromise a duty to another party or if special advantage is deemed to occur. Potential conflicts of interests will also be considered. Members reviewing or approving a loan request with a conflict of interest will refrain from decision making processes on the loan. 15. Delinquency – Delinquency will be handled in a firm, yet flexible way, with provision for modifying or restructuring consistent with program objectives and responsible money management. Any modifications of loan terms and conditions must be requested in writing by the recipient and approved by the EDA Director and, if over $3,000 in modifications, the EDA. 16. Loan Default – Defaults will be handled on a case-by-case basis. Specific action will depend on the nature and circumstances, amount and availability of collateral, and costs versus benefit of liquidating assets or other collateral. Loans are considered to be in default when payments are at least two (2) months past due. 17. Loan Restructuring – RLF loans will only be restructured if the restructuring improves the borrower repayment ability, and normally only where additional security is obtained. Refinancing will not be allowed solely for the purpose of reducing the interest rate due to lower market interest rates. City of St. Joseph – Revolving Loan Fund Guidelines 2023 Page 5 18. Continuing Operations – The loan recipient must commit to continuing operations in the City of St. Joseph where the loan proceeds were used for at least three (3) years after the benefit date. The Revolving Loan Program is intended to be flexible and assistance is customized to meet the particular needs of individual projects. APPLICATION PROCESS The City of St. Joseph shall process and administer each loan in a manner which is usual and customary with regard to other loans under similar circumstances. The basic steps for securing a loan are as follows: 1. Applicant meets with St. Joseph EDA staff to discuss proposed project and loan program guidelines. If project meets program objectives and other eligibility items, then applicant completes the attached application which includes: A. Statement describing nature of business and proposed plans; B. Project description – purpose of loan and expected benefits. Itemize and provide cost estimate for building improvements and/or equipment; C. Sources/Uses proforma for the project; D. Complied profit and loss statement for the past two (2) years (if applicable); E. Personal financial statement(s) (for use in connection with applicant’s equity requirement); F. Requested IRS forms must be submitted prior to loan closing; G. Any other pertinent data. 2. A sub-committee comprised of the St. Joseph Finance Director, at least one (1) but not more than two (2) members of the EDA and the EDA Director shall review the application to determine whether or not it is complete. The EDA at its sole discretion may require a loan officer or a member of senior management from an FDIC insured lender join the Loan Review Committee. If the application is determined to be complete, the subcommittee shall formulate a recommendation to the full EDA concerning the fiscal impact (if any) on the City and the appropriateness of the amount of assistance requested. 3. The St. Joseph EDA will review the application and make a recommendation to the City Council. Upon approval, a Loan Agreement, amortization schedule and all other necessary documents in connection with the loan will be prepared by the St. Joseph EDA staff and shall be executed by the EDA Director. The City/EDA may work with a conventional lender to review the creditworthiness of the applicant and the loan application. 4. The St. Joseph EDA may deny any project which it deems inappropriate according to the guidelines established in this document. STAFF MEMO Prepared by: Community Development Meeting Date: 06/15/26 ☒ Consent Agenda Item ☐ Regular Agenda Item Agenda Item # 4i Reviewed by: Item: Appointment of Joint Planning Board Member Council Priority: ☐ Dispensary ☐ Industrial Park Expansion ☐ Housing ☐ Public Safety Facility/Safe Crossing of CSAH 75 ☒ N/A ACTION REQUESTED Consent gives automatic approval of appointment of Craig Hern to the Joint Planning Board. If item is removed from consent staff requests motion on appointment. BOARD/COMMISSION/COMMITTEE RECOMMENDATION Planning Commission recommended Craig Hern to serve on the Joint Planning Board at their June 8th meeting. PREVIOUS COUNCIL ACTION REFERENCE AND BACKGROUND Craig Hern was nominated by the Planning Commission to fill Isabell Margl’s spot on the Joint Planning Board. The Joint Planning Board will now consist of: Kelly Beniek, Andrew Mooney, Mark Thompson, and Craig Hern. The Joint Planning Board only meets as needed (typically resulting in 1-2 meetings a year). BUDGET IMPACT N/A STAFF RECOMMENDED ACTION Approval of Craig Hern to the Joint Planning Board. SUPPORTING DATA/ATTACHMENTS None STAFF MEMO Prepared by: Admin. Meeting Date: 6/15/26 ☒Consent Agenda Item ☐Regular Agenda Item Agenda Item # 4j Reviewed by: Item: Joint Powers Agreement for Legal Services Council Priority: ☐ Dispensary ☐ Industrial Park Expansion ☐ Housing ☐Public Safety Facility/Safe Crossing of CSAH 75 ☒ N/A ACTION REQUESTED Motion approving the consent agenda will automatically approve this item. If pulled, the following motion is requested. Approve the Joint Powers Agreement for Legal Services with the City of St. Cloud effective January 1, 2027. BOARD/COMMISSION/COMMITTEE RECOMMENDATION N/A PREVIOUS COUNCIL ACTION Previous agreement was approved in 2022. REFERENCE AND BACKGROUND The City of St. Cloud has provided legal services for the City of St. Joseph for criminal prosecutions for several years through a Joint Powers Agreement. The fee for such service has not been increased since 2022. St. Cloud has submitted a draft revised agreement which includes increasing the annual fee from $43,300 to $47,000. This is due to salary increases on their end. BUDGET IMPACT $4,400 increase STAFF RECOMMENDED ACTION Approve the Joint Powers Agreement for Legal Services with the City of St. Cloud effective January 1, 2027. SUPPORTING DATA/ATTACHMENTS Joint Powers Agreement w/ Cover Letter STAFF MEMO Prepared by: Lori Bartlett Meeting Date: 6-15-26 ☒ Consent Agenda Item ☐ Regular Agenda Item Agenda Item # 4k Reviewed by: Item: 2025 TIF Reports Council Priority: ☐ Dispensary ☐ Industrial Park Expansion ☐ Housing ☐ Public Safety Facility/Safe Crossing of CSAH 75 ☒ N/A ACTION REQUESTED Consider approval of the 2025 TIF reports. BOARD/COMMISSION/COMMITTEE RECOMMENDATION EDA will receive a copy of the annual TIF report summary at their June 16th meeting. PREVIOUS COUNCIL ACTION Council approved the creation of the TIF Districts and contracted with Northland Securities to complete the following TIF reports: TIF 2-1,2-3,4-1. REFERENCE AND BACKGROUND Annually the City must report a summary of the activity in each tax increment fund to the State Auditor whether the projects are completed. The reporting forms are due to the State Auditor by August 1st of the following year, and a summary must be published by August 15th of the following year. In addition, the summary reports will be mailed to the School District and Stearns County for their records. For 2025, the reports include three reports for the following TIF projects: TIF 2-1 Millstream Shops and Lofts TIF 2-3 Bayou Blues and Alley Flats TIF 4-1 Fortitude Senior Housing The attached TIF report summary will be submitted to the County and School District. The summary will also be published in the St. Joseph Newsleader on June 19, 2026. Complete forms are available at city hall. BUDGET IMPACT Information only STAFF RECOMMENDED ACTION Approve the annual 2025 TIF reports. SUPPORTING DATA/ATTACHMENTS Summary TIF Publication TIF 2-1 TIF 2-3 TIF 4-1 Millstream Project Bayou Blues Fortitude Senior Housing Current Net Tax Capacity $51,058 $38,123 $65,269 Original Net Tax Capacity $4,637 $1,228 $958 Captured Net Tax Capacity $46,421 $36,895 $64,311 Principal and Interest Payments $44,171 $41,423 $72,696 Due in 2026 Tax Increment Received in 2025 $51,480 $46,158 $82,737 Tax increment Expended in 2025 $45,600 $42,871 $74,166 Month / Year First Tax Incr. Receipt July 2009 July 2017 June 2018 Date of Required Decertification 12/31/34 12/31/42 12/31/43 St. Joseph Newsleader, By August 15, 2026 PUBLIC NOTICE CITY OF SAINT JOSEPH, MINNESOTA ANNUAL DISCLOSURE OF TAX INCREMENT DISTRICTS FOR THE YEAR ENDED DECEMBER 31, 2025 (Minnesota Statutes, Section 469.175(5) 320-363-7201 Additional information regarding each district may be obtained from: Lori Bartlett, Finance Director City of Saint Joseph 75 Callway Street E. Saint Joseph, MN 56374 St Joseph TIF Publication FYE2025 STAFF MEMO Prepared by: Lori Bartlett, Finance Director Meeting Date: 6-15-26 ☒ Consent Agenda Item ☐ Regular Agenda Item Agenda Item # 4l Reviewed by: Item: 1st Quarter 2026 Gambling Reports Council Priority: ☐ Dispensary ☐ Industrial Park Expansion ☐ Housing ☐ Public Safety Facility/Safe Crossing of CSAH 75 ☒ N/A ACTION REQUESTED Consider acceptance of the 1st quarter 2026 gambling reports. BOARD/COMMISSION/COMMITTEE RECOMMENDATION None PREVIOUS COUNCIL ACTION Gambling Premise permits were approved for the St. Joseph Lion’s, Waite Park Babe Ruth Baseball, American Legion Post #328, STMA Youth Hockey and St. Joseph Booster Club. The St. Joseph Booster Club did not begin their pull tabs until 2nd quarter 2026. REFERENCE AND BACKGROUND Per City Ordinance No. 62 each organization conducting lawful gambling within the City of St. Joseph is required to submit copies of their monthly state tax returns to City Hall on a quarterly basis. Some organizations donate their proceeds in specific periods of the year. By year-end, 10% is provided back to the community. Examples of how the organizations are giving back to the community include the following items: St. Joseph Lab School Veteran’s Honor Guard St. John the Baptist Church St. Cloud Schools Sports/Activities Women of Today Rocori Sports/Activities St. Joseph Joes Baseball Cathedral Sports Joe Boys Poker Run STMA Youth Hockey Waite Park Babe Ruth Baseball Quiet Oaks Hospice St. Cloud Area Youth Baseball St. Joseph Food Shelf St. Cloud Area Senior Singer Flags St. Cloud Math & Science Academy St. Joseph Sno Joes Required St. Joseph Community Organization Net Profits Donation Donations % Donated American Legion Post 328 $50,217 $5,022 $3,039 6% St. Joseph Lion's $102,314 $10,231 $10,601 10% STMA Youth Hockey $256,662 $25,666 $4,645 2% St. Joseph Booster Club $0 $0 $0 0% Waite Park Babe Ruth $99,167 $9,917 $6,015 6% BUDGET IMPACT Information only STAFF RECOMMENDED ACTION Accept the 1st quarter of 2026 gambling reports. SUPPORTING DATA/ATTACHMENTS none STAFF MEMO Prepared by: Community Development Meeting Date: 06/15/26 ☒ Consent Agenda Item ☐ Regular Agenda Item Agenda Item # 4m Reviewed by: Item: La Playette Permit Appeal and Parking Waiver Council Priority: ☐ Dispensary ☐ Industrial Park Expansion ☐ Housing ☐ Public Safety Facility/Safe Crossing of CSAH 75 ☒ N/A ACTION REQUESTED Consent gives automatic approval of the permit appeal for the proposed structure and waives the parking requirements. If item is pulled from consent staff requests a motion from the Council on the proposal. BOARD/COMMISSION/COMMITTEE RECOMMENDATION Planning Commission recommended unanimous approval (5-0) on the request at their June 8th meeting. PREVIOUS COUNCIL ACTION Council approved a permit appeal and waiver of parking requirements for the seasonal patio in 2024. The approval of this action allowed the La Playette to formally install a seasonal patio from the months of May-October. REFERENCE AND BACKGROUND La Playette has submitted plans for a permanent structure in the rear of their property that would be 26’x32’ (832 square feet). In 2024 approval was granted for a seasonal patio (May-October) which blocked rear parking spaces. At that time, the owners indicated they intended to pursue a permanent structure, and staff noted that any permanent proposal would require PC and Council action due to long-term parking impacts. Per Ordinance 502.22 Subd. 3 Section M, outdoor dining areas must maintain compliance with off-street parking requirements. The proposed structure would eliminate six rear parking spaces, though two spaces could likely be reclaimed during the winter months. The patio would continue to enclose the rear of the property seasonally from May-October. Since formal approval of the seasonal patio was granted, staff have not received any direct concerns. The adjacent property (Wondering Cow and former Tacoholics space) has an existing eight-foot access that will remain and not be impacted by the proposal. Staff have not received any concerns regarding the patio or access to neighboring properties. BUDGET IMPACT N/A STAFF RECOMMENDED ACTION Approval of permit appeal and parking waiver SUPPORTING DATA/ATTACHMENTS Applicants submitted synopsis and associated building plans STAFF MEMO Prepared by: Community Development Meeting Date: 06/15/26 ☐ Consent Agenda Item ☒ Regular Agenda Item Agenda Item # 5 Reviewed by: Item: PUD Amendment and Variance Request – Country Manor Woodcrest Facility Council Priority: ☐ Dispensary ☐ Industrial Park Expansion ☐ Housing ☐ Public Safety Facility/Safe Crossing of CSAH 75 ☒ N/A ACTION REQUESTED Motion on resolution 2026-036 approving the PUD amendment and Variance. BOARD/COMMISSION/COMMITTEE RECOMMENDATION Planning Commission conducted a public hearing at their June 8th meeting (no one spoke at the hearing besides the applicant). To-date no written comments or calls have been received by staff. Planning Commission voted unanimously (5-0) to approve the PUD amendment and Variance. PREVIOUS COUNCIL ACTION The original Developers agreement for the Country Manor Senior Living Campus dates to 2016. No previous action has occurred on this specific amendment and variance. REFERENCE AND BACKGROUND Country Manor (property owner) is seeking approval on the next phase of their Woodcrest development. The Woodcrest parcel is part of the larger Planned Unit Development entitled “Country Manor Senior Living Campus”. The development envisioned a mix of patio homes, multi-family, open space, woodland preservation, and more. Many of lots of the overall PUD have been developed (Patio homes along Lanigan Way, Joetown Apartments for example). Subject property is identified in the below graphic as lot 001, block 002. The graphic shows all the other lots that are part of this PUD. PUD Amendment The original approved design stated a total of 168 units (120 independent units and 48 memory care). The change in design results in an overall decrease of 44 total units going from 168 to 124 (100 independent units and 24-memory care). City Ordinance 502.09 Subd. 11 references Minor and Major PUD changes (amendments). A minor change includes any revision to the number of dwelling units in a structure or similar revisions. A change in the design is considered a major change. Due to the change in dwelling units and design a PUD amendment is triggered. The building design and materials will match the existing structure. Street Side Yard Setback A portion of the proposed building encroaches into the required street side setback. The proposed setback of this section of the building results in a 20’7” setback (min. is 30’). Graphic showing setback The variance affects only a small portion of the proposed building and will not impact easements, utilities, or the public. Accordingly, resolutions approving both the PUD amendment and variance have been prepared. This project also appears to be exempt from local permitting authority, with building permit review and inspections conducted by the state. Staff is addressing minor site plan comments with the applicant. BUDGET IMPACT N/A STAFF RECOMMENDED ACTION Approval of resolution 2026-036 SUPPORTING DATA/ATTACHMENTS Civil and Site plan documents Resolution 2026-036 Original building design plan D E S I G N G R O U P ISSUES & REVISIONS COMMISSION NO: DRAWN BY: CHECKED BY: SHEET 767 N. EUSTIS STREET, SUITE 190 ST. PAUL, MINNESOTA 55114 651.642.9200 WWW.POPEDESIGN.COM POPE DESIGN GROUP NO T F O R C O N S T R U C T I O N 0"1/2" 1" TRUE SHEET SCALE DATE 5/14/2026 1:43:09 PM Autodesk Docs://15758-25173A - Woodcrest of Country Manor/15758-25173 - Woodcrest of CM.rvt A1 COVER PAGE Checker Author 15758-25173 WOODCREST AL ADDITION 1200 LANIGAN WAY SW ST. JOSEPH, MN 56374 WOODCREST OF COUNTRY MANOR - AL ADDITION ST. JOSEPH, MN SITE SITE NOTES: CURRENT APPROVED PUD INDEPENDENT LIVING UNITS: 120 MEMORY CARE UNITS: 48 SITE TOTAL: 168 UNITS DENSITY: 8 UNITS/ACRE MAJOR AMENDMENT CURRENTLY BUILT ON SITE: ASSISTED LIVING UNITS: 60 MEMORY CARE UNITS: 24 NEW ADDITION ASSISTED LIVING: 40 SITE TOTAL: 124 UNITS DENSITY: 6 UNITS/ACRE SITE DATA PIN: 84.53475.0801 ADDRESS: 1200 LANIGAN WAY SE ST. JOSEPH, MN 56374 DEEDED ACRES: 22.0134 SHEET INDEX ARCHITECTURAL A1 - COVER PAGE A2 - SITE PLAN A3 - FLOOR PLANS 13 D D D D D D D D D D S S S S S S S ACAC E TV P - Passenger Car EXISTING BUILDING ADDITION 21'-8". D E S I G N G R O U P ISSUES & REVISIONS COMMISSION NO: DRAWN BY: CHECKED BY: SHEET 767 N. EUSTIS STREET, SUITE 190 ST. PAUL, MINNESOTA 55114 651.642.9200 WWW.POPEDESIGN.COM POPE DESIGN GROUP NO T F O R C O N S T R U C T I O N 0"1/2" 1" TRUE SHEET SCALE DATE 5/14/2026 4:26:12 PM Autodesk Docs://15758-25173A - Woodcrest of Country Manor/15758-25173 - Woodcrest of CM.rvt A2 SITE PLAN AY AM AY 15758-25173 WOODCREST AL ADDITION 1200 LANIGAN WAY SW ST. JOSEPH, MN 56374 1" = 50'-0"A2 1 SITE PLAN NORTH 14 P - Passenger Car 1,570.01 SF 2 BED 966.7 SF 1 BED 966.7 SF 1 BED 705.47 SF ATRIUM 322.82 SF LOBBY 230.98 SF OFFICE 1,116.7 SF 1 BED+DEN 1,116.7 SF 1 BED+DEN 1,741.05 SF 2 BED+DEN973.38 SF 1 BED 984.32 SF 1 BED 1,751.63 SF 2 BED+DEN 1,116.7 SF 1 BED+DEN 1,266.7 SF 2 BED 1,266.7 SF 2 BED 1,266.7 SF 2 BED 1,116.7 SF 1 BED+DEN 1,266.7 SF 2 BED 1,984.56 SF AMENITY 91.81 SF ELEV 75.89 SF VESTIBULE 72.73 SF ELEV LOBBY 84.06 SF TOILET ROOM 67.08 SF STORAGE 93.3 SF ELEV 245.83 SF STAIR 14,623.1 SF PARKING 198.98 SF STAIR 613.37 SF ELEC ROOM 2,779.26 SF CORRIDOR78.01 SF TOILET 139.88 SF MEP 252.6 SF STAIR 313.69 SF CORRIDOR T MA U EXHAUST 349.93 SF GENERATOR 323.94 SF WATER ROOM 139.96 SF MAILROOM 641.19 SF CORRIDOR 112.72 SF TRASHROOM 20 ' - 0 " 24 ' - 0 " 20 ' - 0 " 21 ' - 4 " TY P 18 ' - 0 " TYP 10'-0" 100.69 SF ELEV 966.7 SF 1 BED 1,562.28 SF 2 BED 966.7 SF 1 BED 553.3 SF AMENITY 1,116.7 SF 1 BED+DEN 1,116.7 SF 1 BED+DEN 966.7 SF 1 BED 973.38 SF 1 BED 1,736 SF 2 BED+DEN 984.32 SF 1 BED 1,751.63 SF 2 BED+DEN 1,116.7 SF 1 BED+DEN 1,266.7 SF 2 BED 1,266.7 SF 2 BED 1,266.7 SF 2 BED 1,116.7 SF 1 BED+DEN 1,241.48 SF AMENITY 1,266.7 SF 2 BED 1,545.89 SF 2 BED 287.97 SF STAIR 1,327.7 SF 1 BED+DEN 1,441.7 SF 2 BED 1,441.7 SF 2 BED 1,548.25 SF 2 BED 1,327.7 SF 1 BED+DEN 1,441.7 SF 2 BED 1,441.7 SF 2 BED 1,327.7 SF 1 BED+DEN 4,818.95 SF CORRIDOR OPEN TO BELOW 245.83 SF STAIR 93.3 SF ELEV 78.01 SF TOILET 995.97 SF AMENITY DECK 704.98 SF STORAGE 67.08 SF STORAGE 25 ' - 0 " 7 ' - 0 " 2 5 ' - 0 " 252.6 SF STAIR 252.6 SF MEP 208'-4 3/8" 473.79 SF AMENITY 286'-6" 27 7 ' - 2 " . 28 ' - 6 " 7' - 0 " 28 ' - 6 " D E S I G N G R O U P ISSUES & REVISIONS COMMISSION NO: DRAWN BY: CHECKED BY: SHEET 767 N. EUSTIS STREET, SUITE 190 ST. PAUL, MINNESOTA 55114 651.642.9200 WWW.POPEDESIGN.COM POPE DESIGN GROUP NO T F O R C O N S T R U C T I O N 0" 1/2" 1" TRUE SHEET SCALE DATE 5/14/2026 1:43:12 PM Autodesk Docs://15758-25173A - Woodcrest of Country Manor/15758-25173 - Woodcrest of CM.rvt A3 FLOOR PLANS Checker Author 15758-25173 WOODCREST AL ADDITION 1200 LANIGAN WAY SW ST. JOSEPH, MN 56374 1" = 20'-0"A3 1 FIRST LEVEL 1" = 20'-0"A3 2 SECOND LEVEL UNIT COUNT PER LEVEL Name Count 1 BED 4 1 BED+DEN 4 2 BED 5 2 BED+DEN 2 FIRST LEVEL: 15 1 BED 5 1 BED+DEN 7 2 BED 11 2 BED+DEN 2 SECOND LEVEL: 25 Grand total: 40 TOTAL GSF Name Area 1 BED 1,933.39 1 BED 973.38 1 BED 984.32 1 BED+DEN 4,466.79 2 BED 5,066.79 2 BED 1,570.01 2 BED+DEN 1,741.05 2 BED+DEN 1,751.63 AMENITY 1,984.56 ATRIUM 705.47 CORRIDOR 313.69 CORRIDOR 641.19 CORRIDOR 2,779.26 ELEC ROOM 613.37 ELEV 91.81 ELEV 93.3 ELEV LOBBY 72.73 GENERATOR 349.93 LOBBY 322.82 MAILROOM 139.96 MEP 139.88 OFFICE 230.98 PARKING 14,623.1 STAIR 198.98 STAIR 245.83 STAIR 252.6 STORAGE 67.08 TOTAL GSF Name Area TOILET 78.01 TOILET ROOM 84.06 TRASHROOM 112.72 VESTIBULE 75.89 WATER ROOM 323.94 FIRST LEVEL: 39 43,028.53 1 BED 2,900.09 1 BED 973.38 1 BED 984.32 1 BED+DEN 4,466.79 1 BED+DEN 3,983.09 2 BED 5,066.79 2 BED 5,766.79 2 BED 1,545.89 2 BED 1,548.25 2 BED 1,562.28 2 BED+DEN 1,736 2 BED+DEN 1,751.63 AMENITY 473.79 AMENITY 553.3 AMENITY 1,241.48 AMENITY DECK 995.97 CORRIDOR 4,818.95 ELEV 93.3 ELEV 100.69 MEP 252.6 TOTAL GSF Name Area STAIR 245.83 STAIR 252.6 STAIR 287.97 STORAGE 67.08 STORAGE 704.98 TOILET 78.01 SECOND LEVEL: 39 42,451.86 Grand total 85,480.39 UNIT COUNT Name Count 1 BED 9 1 BED+DEN 11 2 BED 16 2 BED+DEN 4 Grand total: 40 NORTH NORTH 15 LANDSCAPE OVERVIEW PLAN: 1. See Civil Engineer's plans for site plan layout and dimensions. 2. Contractor to coordinate any work in the city right-of-way with City Public Works Department. 3. See Architect's plans for additional requirements regarding the site plan layout. 4. Place a minimum of 4" topsoil or slope dressing on all areas disturbed by construction, including right-of-way boulevards, unless specified otherwise. 5. See Civil Engineer's Plans for utility locations. 6. Irrigation plan to be design-build by landscape contractor. CITY OF ST. JOSEPH LANDSCAPE REQUIREMENTS:GENERAL NOTES: SITE DATA: Zoning: R-5 Supportive Building Addition Floor Area: approx. 62,000 sq ft MINIMUM PLANTING SIZES: 1.5" Overstory Deciduous Tree 1.5" Ornamental Tree 4' Hgt. Coniferous Tree 2 gallon Shrub L100 LA N D S C A P E O V E R V I E W P L A N PROPOSED ADDITION LANDSCAPE PLAN SEE SHEET L101 SCALE IN FEET 0 60 120 1 inch = 60 feet DESIGN GROUP Landscape Architecture | Planning EXISTING BUILDING SYMBOL CODE BOTANICAL NAME COMMON NAME SIZE CONTAINER QTY EVERGREEN TREES PD Picea glauca `Densata`Black Hills Spruce 4` Hgt.B&B 12 ORNAMENTAL TREES Ms Malus x `Spring Snow`Spring Snow Crab Apple 1.5" Cal.B&B 5 Si Syringa reticulata `Ivory Silk`Ivory Silk Japanese Tree Lilac 1.5" Cal.B&B 5 OVERSTORY TREE AS Acer x freemanii `Sienna` Sienna Glen Maple 1.5" Cal.B&B 10 BR Betula nigra Clump Form River Birch 4` Hgt.B&B 2 CO Celtis occidentalis Common Hackberry 1.5" Cal.B&B 3 GD Gleditsia triacanthos inermis 'Draves' TM Street Keeper Honey Locust 1.5" Cal.B&B 5 QB Quercus bicolor Swamp White Oak 1.5" Cal.B&B 3 TS Tilia americana `Sentry`Sentry Linden 1.5" Cal.B&B 4 UA Ulmus x `Accolade`Accolade Elm 1.5" Cal.B&B 5 SHRUBS AM Aronia melanocarpa `Morton` TM Iroquis Beauty Black Chokeberry 2 gal.Pot 27 Cr Cornus alba `Regnzam`Red Gnome Dogwood 5 gal.Pot 10 CW Cornus alternifolia 'Wstackman' Golden Shadows® Dogwood 10 gal.Pot 1 CI Cornus sericea `Isanti` Isanti Redosier Dogwood 5 gal.Pot 9 DL Diervilla lonicera Dwarf Bush Honeysuckle 2 gal.Pot 12 HA Hydrangea arborescens `Annabelle` Annabelle Hydrangea 2 gal.Pot 37 RG Rhus aromatica `Gro-Low` Gro-Low Fragrant Sumac 2 gal.Pot 23 SS4 Sorbaria sorbifolia `Sem` Sem Ash Leaf Spirea 2 gal.Pot 7 Sm2 Syringa patula `Miss Kim`Miss Kim Lilac 5 gal.Pot 15 Tt2 Thuja occidentalis 'Techny Globe' Techny Globe Arborvitae 5 gal. (Min. 24" Hgt.)Pot 24 VB Viburnum trilobum `Bailey Compact` Compact American Cranberry Bush 2 gal.Pot 23 ANNUALS/PERENNIALS Hh Hemerocallis x `Happy Returns`Happy Returns Daylily 1 gal.Pot 12 Nw Nepeta x faassenii `Walkers Low`Walkers Low Catmint 1 gal.Pot 4 GRASSES Ck Calamagrostis x acutiflora `Karl Foerster`Feather Reed Grass 1 gal.Pot 121 PLANT SCHEDULE MINIMUM PLANT QUANTITIES: Overstory Trees: One tree for every 1,250 sq ft of total building floor area. A minimum of twenty-five percent (25%) of the trees required will be coniferous Calculation: 62,000 / 1,250 = 50 Overstory Trees (38 Deciduous + 12 Coniferous) Ornamental Trees: One ornamental tree can be substituted for every (6 10) of an overstory deciduous shade tree. In no cases shall ornamental trees exceed 50% of the required number of trees. Understory Shrub: One understory shrub for every four hundred 450 sq ft of building Calculation: 62,000 / 450 = 138 Shrubs PROPOSED ADDITION 16 PROPOSED ADDITIONEXISTING BUILDING PAVING PER CIVIL PLANS PAVING PER CIVIL PLANS SIDEWALK PER CIVIL PLANS SIDEWALK PER CIVIL PLANS TURF SOD ROCK MULCH AND EDGER PER NOTES ROCK MULCH AND EDGER PER NOTES ROCK MULCH AND EDGER PER NOTES ROCK MULCH AND EDGER PER NOTES TURF SOD TO DISTURBED LIMITS, FIELD VERIFY NATIVE SEED PER SCHEDULE 6'-0" WIDE TURF SOD MOW STRIP SEED / SOD LINE NATIVE SEED TO DISTURBED LIMITS, FIELD VERIFYEXISTING DRAINAGE SWALE EXISTING MONUMENT SIGN & LANDSCAPING TO REMAIN SEED / SOD LINE TURF SOD TO DISTURBED LIMITS, FIELD VERIFY EXISTING TURF TO REMAIN EXISTING FENCED PET PARK TO REMAIN PROPOSED ADDITION TURF SOD ROCK MULCH PER NOTES ROCK MULCH PER NOTES ROCK MULCH PER NOTES TURF SOD TURF SOD TURF SOD TURF SOD TURF SOD TURF SOD TURF SOD ENSURE GRADE IS PROPERLY BACKFILLED ON BOTH SIDES OF THE STAIR TO ENSURE SOD IS CONTINUOUS AND REMAINS 1" BELOW SIDEWALK GRADE BALCONYBALCONY BALCONY BALCONYBALCONY BALCONY BALCONY BALCONY BALCONYBALCONY BALCONY BALCONY BA L C O N Y BA L C O N Y BA L C O N Y BA L C O N Y BA L C O N Y BAL C O N Y BAL C O N Y BAL C O N Y BAL C O N Y EXISTING PARKING LOT ISLAND LANDSCAPING TO REMAIN EXISTING LANDSCAPING & EDGER TO REMAIN, PROTECT DURING CONSTRUCTION CONNECT NEW EDGER TO EXISTING EDGER FOR TO CREATE A CONTINUOUS PLANT BED CONNECT NEW EDGER TO EXISTING EDGER FOR TO CREATE A CONTINUOUS PLANT BED EXISTING PLANT BED TO REMAIN EXISTING DRAINAGE SWALE EXISTING LANDSCAPE TO REMAIN EXISTING TURF TO REMAIN NATIVE SEED TO DISTURBED LIMITS, FIELD VERIFY EXISTING TURF TO REMAIN EXISTING TURF TO REMAIN EXISTING SIDEWALK E X I S T I N G S I D E W A L K PAVING PER CIVIL PLANS TURF SODWOOD MULCH & EDGER PER NOTES WOOD MULCH & EDGER PER NOTES WOOD MULCH & EDGER PER NOTES WOOD MULCH & EDGER PER NOTES EXISTING PARKING LOT CONIFEROUS TREE, TYP. OVERSTORY DECIDUOUS TREE, TYP. ORNAMENTAL TREE, TYP. ORNAMENTAL TREE, TYP. CONIFEROUS TREE, TYP. OVERSTORY DECIDUOUS TREE, TYP. OVERSTORY DECIDUOUS TREE, TYP. LANDSCAPE PLAN - AREA 'A':L101 LA N D S C A P E P L A N - A R E A ' A ' SCALE IN FEET 0 25 50 1 inch = 25 feet Proposed Turf Sod, See Notes LANDSCAPE MATERIAL LEGEND: Proposed Landscape Edging, See Notes Proposed Native Seed, See Scehdule Proposed Rock Mulch, See Notes DESIGN GROUP Landscape Architecture | Planning 17 1 RESOLUTION 2026-036 ADOPTING FINDINGS OF FACT AND APPROVING AMENDMENT TO THE COUNTRY MANOR SENIOR LIVING CAMPUS DEVELOPMENT AGREEMENT AND VARIANCE TO STREET YARD SETBACK WHEREAS, Country Manor St. Joseph, LLC (owner and applicant) hereafter referred to as “applicant” and “owner” has properly applied for a Planned Unit Development Amendment and Variance to a street yard setback; and WHEREAS, the St. Joseph Planning Commission reviewed the request, conducted a public hearing and recommended approval of the Street Yard Setback on June 8th, 2026; and WHEREAS, the subject property is legally described in Exhibit A; and WHEREAS, the subject property is zoned as R-5 PUD and; WHEREAS, the subject property has a Planned Unit Development Agreement that was executed on August 29th, 2016 and; WHEREAS, the St. Joseph Planning Commission reviewed the request, conducted a public hearing and recommended approval of the Country Manor Senior Campus Planned Unit Development Amendment on June 8th, 2026; and WHEREAS, the owner is proposing to modify the original design concept and decrease the overall density of lot 001, block 002 of the Country Manor Senior Living Campus plat; and WHEREAS, the original density on lot 001, block 002 of the Country Manor Senior Living Campus plat stated 168 total units (120 independent, and 48 memory care) and the proposed new density total would be 124 units (100 assisted and 24 memory care) and; WHEREAS, the owner is proposing a variance to the required street side yard setback on lot 001, block 002 of the Country Manor Senior Living Campus plat; and WHEREAS, the proposed development has been reviewed by the city engineer; and NOW THERFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ST. JOSEPH, MINNESOTA: That the final Planned Unit Development of “Country Manor Senior Campus” be approved with the following conditions: 2 1. A Variance of 10’ 5” to the street side yard setback on Lot 002, block 001 of the Country Manor Senior campus plat shall hereby be approved. 2. Site Plan approval shall occur before construction and permits are approved. 3. This resolution shall be recorded at Stearns County recorders office. Whereupon said resolution was declared duly passed and adopted by the St. Joseph City Council this 15th day of June, 2026. CITY OF ST. JOSEPH ATTEST By Adam Scepaniak, Mayor By David Murphy, City Administrator Document drafted by: City of St. Joseph 75 Callaway St E St. Joseph, MN 56374 3 EXHIBIT A Lot 001, Block 002, Country Manor Senior Living Campus STAFF MEMO Prepared by: Community Development Meeting Date: 06/15/26 ☐Consent Agenda Item ☒Regular Agenda Item Agenda Item # 6 Reviewed by: Attorney Item: Public Hearing - Data Center Moratorium Council Priority: ☐ Dispensary ☐ Industrial Park Expansion ☐ Housing☐Public Safety Facility/Safe Crossing of CSAH 75 ☒ N/A ACTION REQUESTED 1.Conduct public hearing 2.Approval of Ordinance 2026-004 3.Approval of Summary publication 2026-035 BOARD/COMMISSION/COMMITTEE RECOMMENDATION None PREVIOUS COUNCIL ACTION This item is coming forward from the May 18th Council Work Session. REFERENCE AND BACKGROUND Adopting a moratorium on data center development would temporarily pause all data center land use applications for up to one year, through June 15, 2027. During this period, staff, the Planning Commission, and the City Council would have the opportunity to study data center development and develop an appropriate regulatory framework, including zoning district eligibility and development standards. BUDGET IMPACT None all work will be done in-house STAFF RECOMMENDED ACTION Approval of Ordinance 2026-004 and Summary publication 2026-035 SUPPORTING DATA/ATTACHMENTS Ordinance 2026-004 Summary publication 2026-035 CITY OF ST. JOSEPH ORDINANCE 2026-004 AN INTERIM ORDINANCE AUTHORIZING A STUDY AND DECLARING A MORATORIUM ON DATA CENTER DEVELOPMENT WITHIN THE CITY OF ST. JOSEPH, MINNESOTA The City of St. Joseph HEREBY ORDAINS: Section 1: Purpose and Intent: A.The City Council of the City of St. Joseph (“City”) recognizes that data centers have become increasingly prevalent due to growing demand for cloud computing, artificial intelligence, data storage, and related technologies. The City is aware data centers may create significant impacts on electrical infrastructure, water resources, land use patterns, noise levels, emergency services, transportation systems, and environmental sustainability. B.The City's existing zoning and development regulations may not adequately address the unique impacts associated with large-scale data center facilities. It is in the best interests of the public to place a City-wide moratorium on Data Centers to provide City staff and consultants, if so hired, with a meaningful opportunity to study whether and how the City should amend its official controls to effectively regulate Data Centers moving forward. C. T he City Council finds that allowing applications for new data centers to proceed during such study period could result in development that is inconsistent with future regulations intended to protect the public health, safety, and welfare; and D.The City is authorized to protect the public health, safety, and welfare through the exercise of its zoning, land use, and police powers; and Minnesota Statutes Section 462.355 allows the City to adopt a temporary moratorium to allow the City gather technical information, review infrastructure capacity, and evaluate whether amendments to the City's Comprehensive Plan, Zoning Ordinance, utility regulations, and development standards are necessary. Section 2. Moratorium Established. A temporary moratorium is hereby imposed on the acceptance, processing, review, approval, issuance, or granting of any application, permit, license, rezoning request, conditional use permit, site plan approval, subdivision approval, building permit, or other land use entitlement for the construction, expansion, or establishment of any new data center facility within the City. For purposes of this Resolution, a "Data Center" shall mean a facility or group of facilities used primarily to house computer systems and associated components, such as telecommunication and storage systems that are used for the storage, management, processing, transmission, or distribution of digital data through computer servers, networking equipment, systems, services, appliances, and/or other associated components related to digital data operations. A Data Center may also include accessory and appurtenant facilities, such as offices, air handlers, power generators, water cooling systems and water storage facilities, utility substations, and other associated infrastructure necessary to support sustained digital data operations. Section 3. Duration. The moratorium established by this Resolution shall remain in effect for a period of twelve (12) months from the effective date of this Resolution unless repealed or modified by action of the City Council. Section 4. Scope. This moratorium shall apply to all new data center developments and any expansion of an existing data center that would increase building area, electrical demand, water consumption, or operational capacity. Section 5. Purpose of Study. During the moratorium period, City staff shall evaluate and make recommendations regarding, appropriate zoning districts for data center development, electrical infrastructure capacity and utility impacts, water usage and conservation requirements; and any other matters deemed relevant by the City Council. Section 6. Effective Date. This Resolution shall take effect immediately upon its adoption and publication and shall remain in effect as provided herein. Approved by the City Council this 15th day of June 2026. _______________________ ___________________________ Adam Scepaniak, Mayor David Murphy, City Administrator Resolution 2026-035 SUMMARY PUBLICATION OF ORDINANCE NO. 2026-004 The following official summary of the ordinance referred to has been approved by the City Council of St. Joseph as clearly informing the public of the intent and effect of the amendments. Ordinance 2026-004 declares a moratorium on Data Center development within the city of St. Joseph. The purpose of the Moratorium is to provide the City with time to study Date Center development and develop a regulatory framework and standards to effectively govern Date Center projects. A printed copy of the entire ordinance is available for inspection by any person at the office of the City Clerk any Monday through Friday between the hours of 8:00a.m. and 4:30 p.m. or on the City website at www.cityofstjoseph.com This document hereby is made a part of this ordinance and is attached hereto. _____________________________ Adam Scepaniak, Mayor ATTEST: _____________________________ David Murphy, City Administrator SEAL PUBLISHED IN THE ST. CLOUD TIMES ON ________________, 2026 STAFF MEMO Prepared by: Community Development Meeting Date: 06/15/26 ☐Consent Agenda Item ☒Regular Agenda Item Agenda Item # 7 Reviewed by: Attorney Item: Public Hearing - Multi-family Moratorium Council Priority: ☐ Dispensary ☐ Industrial Park Expansion ☐ Housing☐Public Safety Facility/Safe Crossing of CSAH 75 ☐ N/A ACTION REQUESTED 1.Conduct public hearing 2.Motion on Ordinance 2026-005A or Ordinance 2026B 3.If Ordinance 2026-005A passes then motion on Summary publication 2026-037A. If Ordinance 2026- 005B passes then motion on Summary publication 2026-037B. BOARD/COMMISSION/COMMITTEE RECOMMENDATION None PREVIOUS COUNCIL ACTION This item is coming forward from the May 18th Council Work Session. REFERENCE AND BACKGROUND Per Council discussion two Moratorium options are being presented for Multi-family projects. Ordinance 2026-005A – Option 1 Option 1 applies to properties currently zoned R-3 (Multi-Family) and to properties seeking a rezone to R-3. At present, only one vacant parcel is zoned R-3 (West of Wobegon trailhead across County Road 2); however, the owner has indicated an interest in developing townhomes rather than apartments, and the site faces significant utility extension challenges making the parcel not shovel ready. One additional parcel (across from Dollar General and South of Boulder Ridge apts) is zoned B-2 but is guided for High Density Residential in the Future Land Use Plan, making it a potential candidate for rezoning to R-3 (speculative only). It should be noted that any rezoning request, regardless of whether a moratorium is in place, would require Planning Commission review, public hearings, and City Council approval. This option, like Option 2, exempts senior living facilities. If adopted by Council the Moratorium would be in place for up to 12 months or whenever Council repeals the Moratorium. Ordinance 2026-005B – Option 2 Option 2 would apply to any Multi-family project in the city regardless of zoning designation. This includes mixed use apartments in the downtown district for example. Downtown district zoning allows developments like the “Millstream Shops and Lofts” and “24 North Lofts” through a Conditional Use permit and provided the development has ground floor commercial use. A Conditional Use permit requires Planning Commission recommendation, public hearing, and Council action. This option like option 1 does exempt any Senior living facilities from moving forward. If adopted by Council the Moratorium would be in place for up to 12 months or whenever Council repeals the Moratorium. Other notes: •Without a Moratorium in place (operating as is) any rezone request, conditional use permit, etc. requires Planning Commission recommendation, public hearings and Council actions •There is just one parcel that is vacant and zoned R-3 and the parcel is not shovel ready and conceptual plans have showed lower density for intended use (townhomes) •Option 2 is much broader but applies to parcels that are already required to go through public processes like rezones, conditional uses, public hearings, etc. • Areas where multi-family is allowed are in the traditional R-3 district, B-1 (downtown) through a Conditional Use permit, and through development of a Planned unit Development. Planned Unit Developments (PUDs) often include a mix of housing types and uses. Examples include Graceview Estates, which contains Serenity on 7th, patio homes, townhomes, and single-family homes, and the Country Manor Senior Living Campus, which includes Joetown Apartments, Lanigan Way patio homes, and Woodcrest. PUDs are typically subject to density limits and require multiple approvals, including rezoning, platting, public hearings, and actions by the Planning Commission and City Council. • A moratorium would not prohibit future rezoning, CUP, or PUD applications; it would only temporarily pause consideration of those requests during the moratorium period. • Exhibit A depicts areas of town where staff has been working with developers on conceptual plans and a land use application is expected to be submitted in 2026 or 2027. BUDGET IMPACT None all work will be done in-house if a Moratorium is put in place STAFF RECOMMENDED ACTION This item is not a staff recommendation. SUPPORTING DATA/ATTACHMENTS Ordinance 2026-005A Ordinance 2026-005B Summary Publication 2026-037 Exhibit A - Zoning map graphics Future Land Use map graphics CITY OF ST. JOSEPH ORDINANCE 2026-005A AN INTERIM ORDINANCE AUTHORIZING A STUDY AND DECLARING A MORATORIUM ON APARTMENT DEVELOPMENT WITHIN CERTAIN ZONING DISTRICTS IN THE CITY OF ST. JOSEPH, MINNESOTA The City of St. Joseph HEREBY ORDAINS: Section 1: Purpose and Intent: A. The City Council of the City of St. Joseph (“City”) recognizes that apartment complexes have become increasingly prevalent due to decreased inventory of single-family dwellings. The City is concerned that unregulated growth of apartments will create significant impacts on utility infrastructure, emergency services, transportation systems, and land use patterns. B. The City's existing zoning and development regulations may not adequately address the unique impacts associated with apartment complexes or in the alternative encourage the development of single-family dwelling units. It is in the best interests of the public to place a City-wide moratorium on new apartments to provide City staff and consultants, if so hired, with a meaningful opportunity to study whether and how the City should amend its official controls to ensure a diverse supply of housing opportunities. C. T he City Council finds that allowing new apartment development to proceed during such study period could result in development that is inconsistent with future regulations intended to protect the public health, safety, and welfare; and D. The City is authorized to protect the public health, safety, and welfare through the exercise of its zoning, land use, and police powers; and Minnesota Statutes Section 462.355 allows the City to adopt a temporary moratorium to allow the City gather technical information, review infrastructure capacity, and evaluate whether amendments to the City's Comprehensive Plan, Zoning Ordinance, utility regulations, and development standards are necessary. Section 2. Moratorium Established. A temporary moratorium is hereby imposed on the acceptance, processing, review, approval, issuance, or granting of any application, permit, license, rezoning request, conditional use permit, site plan approval, subdivision approval, building permit, or other land use entitlement for the construction, expansion, or establishment of any apartment within the City. For purposes of this Resolution, "apartment" shall mean a multi-family building containing dwelling units in a stacked configuration having common walls and floors/ceilings, but not including senior living/assisted living facilities. Section 3. Duration. The moratorium established by this Resolution shall remain in effect for a period of twelve (12) months from the effective date of this Resolution unless repealed or modified by action of the City Council. Section 4. Scope. This moratorium shall apply to any request to rezone to R-3 Multiple Family Residence District and any site plans, building permits or other land use applications for the development of new apartments or the expansion of an existing apartment building that would increase building area in the R-3 Multiple Family Residence District. Section 5. Purpose of Study. During the moratorium period, City staff shall evaluate and make recommendations regarding, appropriate zoning districts for apartment development, and appropriate controls to address impacts on utility infrastructure, emergency services, transportation systems, and land use patterns; and any other matters deemed relevant by the City Council. Section 6. Effective Date. This Resolution shall take effect immediately upon its adoption and publication and shall remain in effect as provided herein. Approved by the City Council this 15th day of June 2026. _______________________ ___________________________ Adam Scepaniak, Mayor David Murphy, City Administrator CITY OF ST. JOSEPH ORDINANCE 2026-005B AN INTERIM ORDINANCE AUTHORIZING A STUDY AND DECLARING A MORATORIUM ON APARTMENT DEVELOPMENT WITHIN THE CITY OF ST. JOSEPH, MINNESOTA The City of St. Joseph HEREBY ORDAINS: Section 1: Purpose and Intent: A. The City Council of the City of St. Joseph (“City”) recognizes that apartment complexes have become increasingly prevalent due to decreased inventory of single-family dwellings. The City is concerned that unregulated growth of apartments will create significant impacts on utility infrastructure, emergency services, transportation systems, and land use patterns. B. The City's existing zoning and development regulations may not adequately address the unique impacts associated with apartment complexes or in the alternative encourage the development of single-family dwelling units. It is in the best interests of the public to place a City-wide moratorium on new apartments to provide City staff and consultants, if so hired, with a meaningful opportunity to study whether and how the City should amend its official controls to ensure a diverse supply of housing opportunities. C. T he City Council finds that allowing new apartment development to proceed during such study period could result in development that is inconsistent with future regulations intended to protect the public health, safety, and welfare; and D. The City is authorized to protect the public health, safety, and welfare through the exercise of its zoning, land use, and police powers; and Minnesota Statutes Section 462.355 allows the City to adopt a temporary moratorium to allow the City gather technical information, review infrastructure capacity, and evaluate whether amendments to the City's Comprehensive Plan, Zoning Ordinance, utility regulations, and development standards are necessary. Section 2. Moratorium Established. A temporary moratorium is hereby imposed on the acceptance, processing, review, approval, issuance, or granting of any application, permit, license, rezoning request, conditional use permit, site plan approval, subdivision approval, building permit, or other land use entitlement for the construction, expansion, or establishment of any apartment within the City. For purposes of this Resolution, "apartment" shall mean a multi-family building containing dwelling units in a stacked configuration having common walls and floors/ceilings, but not including senior living/assisted living facilities. Section 3. Duration. The moratorium established by this Resolution shall remain in effect for a period of twelve (12) months from the effective date of this Resolution unless repealed or modified by action of the City Council. Section 4. Scope. This moratorium shall apply to all new apartments and any expansion of an existing apartment building that would increase building area. Section 5. Purpose of Study. During the moratorium period, City staff shall evaluate and make recommendations regarding, appropriate zoning districts for apartment development, and appropriate controls to address impacts on utility infrastructure, emergency services, transportation systems, and land use patterns; and any other matters deemed relevant by the City Council. Section 6. Effective Date. This Resolution shall take effect immediately upon its adoption and publication and shall remain in effect as provided herein. Approved by the City Council this 15th day of June 2026. _______________________ ___________________________ Adam Scepaniak, Mayor David Murphy, City Administrator Resolution 2026-037A SUMMARY PUBLICATION OF ORDINANCE NO. 2026-005A The following official summary of the ordinance referred to has been approved by the City Council of St. Joseph as clearly informing the public of the intent and effect of the amendments. Ordinance 2026-005A declares a moratorium on Multi-family development within the city of St. Joseph. The purpose of the Moratorium is to provide the City with time to study the impacts of Multi-family development on parcels zoned R-3 or parcels that would seek a rezone to R-3. The Moratorium would not apply to senior living/assisted living facilities. A printed copy of the entire ordinance is available for inspection by any person at the office of the City Clerk any Monday through Friday between the hours of 8:00a.m. and 4:30 p.m. or on the City website at www.cityofstjoseph.com This document hereby is made a part of this ordinance and is attached hereto. _____________________________ Adam Scepaniak, Mayor ATTEST: _____________________________ David Murphy, City Administrator SEAL PUBLISHED IN THE ST. CLOUD TIMES ON ________________, 2026 Resolution 2026-037B SUMMARY PUBLICATION OF ORDINANCE NO. 2026-005B The following official summary of the ordinance referred to has been approved by the City Council of St. Joseph as clearly informing the public of the intent and effect of the amendments. Ordinance 2026-005B declares a moratorium on all Multi-family development within the city of St. Joseph regardless of zoning district. The purpose of the Moratorium is to provide the City with time to study the impacts of Multi-family development within the city. The Moratorium would not apply to senior living/assisted living facilities. A printed copy of the entire ordinance is available for inspection by any person at the office of the City Clerk any Monday through Friday between the hours of 8:00a.m. and 4:30 p.m. or on the City website at www.cityofstjoseph.com This document hereby is made a part of this ordinance and is attached hereto. _____________________________ Adam Scepaniak, Mayor ATTEST: _____________________________ David Murphy, City Administrator SEAL PUBLISHED IN THE ST. CLOUD TIMES ON ________________, 2026 Graceview estates outlot – zoned PUD and geared towards Senior Living facility. Both Moratorium options would exempt Senior Living facilities. Downtown District – developers can construct multi-use buildings with apartments on the upper floors and commercial on the lower floors provided certain requirements are met and the project goes through the Conditional Use Permit process. Option 2 would pause projects like this from moving forward during the duration of the Moratorium. A developer has worked on conceptual plans in this district to do a mixed-use building with hotel spaces in the upper levels, multi-family in the upper levels, and commercial on bottom floor. Graceview Estates outlot Downtown District Vacant R-3 zoned property 3 2 64 t h A v e N A spen La Iri s L a S a v a n n a h A v e 4 t h S t S Br o m o A v e Old H w y 5 2 No r t h l a n d D r 12 t h A v e S E 6 t hAve HillStW E Dale St Cy p r e s s R d Mul b erry Rd 14thA ve 67th Ave 1st St N C o r y La Kenwood Rd 4 t h Ave S E 16 t h A v e S E We s t w i n d R d W estw oodPkwy Saukview Dr W e s twood Pkw y 2n d A v e N E Elen a L a Casselberry R d Gum Tree St E Iv e r s o n S t W E Callaway St Pond View La 10 3 r d A v e 1 8 t h Ave SE Northwood La Laurel Rd Wi l d w o o d R d Co t t o n w o o d Rd Pleasant Ave 22nd St N 20th St N 33rd Ave 24th St N M-110 Yo s e m i t e S t Elm St E E Cedar St Po p p y R d J a s m i n e La Jasm i n e La 2n d S t S C o n s t i tutionD r 15 t h Av e N E Ri d g e w o o d R d Ja d e R d Callaway StE 73 r d A v e N 1st St S 34 t h A v e 19 t h A v e N E 28th Ave S Isabel St 322nd St 11 5 t h A v e T - 2 2 8 5 1s t Av e N E Minnesota S t Sunrise R d Te r r y R d 1 2 5 t h A v e PearlDr Old H w y R d N 295th St Ki n g f i s h e r C t Ka l e Ct Ki w i C t Lynn Rd Ellen Rd K o h l e r C t Old C o l l e g e v i l l e Rd Ju l e p R d M e a d o w La 76 t h Av e 304th St 80th A v e 295th St T- 2 3 1 5 Ol d H i g h w a y 5 2 10 5 t h Av e 3 0 5th St Norway Rd 12 4 t h Av e KnightwoodRd 115th Ave Luce n t L a 320th St Kreamer Lake Rd T-21 9 6 Kar l y n Rd 2 8 2 n d St L e a f R d Indigo R d Fr o n t a g e R d DeltaCir T-2093 Belclare Dr K i p p er R d 280th St Island Lake Rd 91 s t A v e J i m s o n R d 290th St Sterlin g Dr 287th St 13 3 r d A v e 91 s t A v e 86 t h A v e T-120 0 O l d C olle g e ville Rd Mullen Rd N FruitFarmRd J u niper R d C ollegevilleRd Ke l p R d 134 134 159 121 160 Cypress Rd Rolling Ridge Rd 28 t h A v e S 4thAve SE Co l l e g e A v e S E Baker S t 95th Ave 2n d A v e S E 95th Ave SE 12th A v e SE 2 n d A v e N W NE 1 s t Av e 1 s t A v e N W Birch St Ash St W E Minneso t a S t 4thAveNE 16th Ave SE 65th A v e W e s t w o o d P k w y We s t w o o d P k w y 2 2 133 138 138 3 4 75 75 75 75 137 51 51 2 23 94 94 O Pa t h : X: \ P T \ S \ S T J O E \ c o m m o n \ m a p \ G I S \ Z o n i n g \ Z o n i n g M a p U p d a t e \ Z o n i n g M a p U p d a t e . a p r x 0 0.5 1 Mile Future Land Use Map St. Joseph, MNMap by: tschwarz Projection: NAD 1983 HARN Adj MN Stearns Feet Source: City of St. Joseph, Stearns County, SEH, Inc This map is neither a legally recorded map nor a survey map and is not intended to be used as one. This map is a compilation of records, information, and data gathered from various sources listed on this map and is to be used for reference purposes only. SEH does not warrant that the Geographic Information System (GIS) Data used to prepare this map are error free, and SEH does not represent that the GIS Data can be used for navigational, tracking, or any other purpose requiring exacting measurement of distance or direction or precision in the depiction of geographic features. The user of this map acknowledges that SEH shall not be liable for any damages which arise out of the user's access or use of data provided. Date of Parcel Data: August 2025 Print Date: 8/26/2025 Water Park Public Open Space Educational High Density Residential Medium Density Residential Low Density Residential Light Industrial Corridor Commercial Community Oriented Mixed Use PUD Original Townsite Residential Central Business District/ Neighborhood Oriented Mixed Use Legend