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Home My WebLink About2002 [06] Jun 19 " 1, , itg Of St. Josepfi " ~ College Avenue NW P.O. Box 668, St. Joseph; MN 56374 . (3205 363-7201 Fax.: 363-0342 CLERK! St. Joseph Economic Development Authority Meeting Noti~& ' AD~R Judy Weyreris VVednesdây,June19,20D2 4:00 p.m. City ~âll . MAYOR LaiIy J. Hosch . 1'!~% \¢áíLtQ¡~rdèt~'~i . . COuNCILORS, Bob Loso 2. Approval of Agenda Cözy Ehlert Kyle Scbneidèr 3. Approval of Minutes Alan Rassier A. May 15, 2002 4. Approval of Accounts Þ¡:Iyable - 5. Business . A. Vicwest - St. Joseph Development, LLC Project - Special Meeting June 27th - - 7:00 p.m. TIF Application, MIF and lOB B. Commercial Redevelopment Update - C. St. Joseph Beautification Projecf . D. Tax Increment Financing GuidelineslReport Card E. Comprehensive Plan- Economic Development eh~pter - - , 6. Presentation: Mr. Scott Martin, Minnesota 'Community Capital Fund 7. Director Report A. Prospect List/Activity Report· 8. Board Member Announcements 9. Adjournment - ~ I I . . THIS PAGE INTENTIO'NALL Y LEFT BLANK - - - - . - - - - - }, . ~ - 'M=,.H&?I'~t~,"'" Present Mayor Lany HOSCh, BGþ Loso, Ri~!':t~~~~\'~=',:lR,t?~~),c>.,!;; t,i~no;, ,,_ii¡i$föf~~~#ent~~~~~:~'~~'~f§~ Vice President Hosch called the meeting of the St Joseph EDA to, ortier at 4:05 p.m. .. .~. >- ~ .'~. '--~..:;. -. Agellda:' '. ...... .'...... . .. ........ < .... ..'. ........, ....<:;"..,'..),,;. O··i·";·)~;;r . l!!9X£#rt.PJ{ Lp~# ~lJdefJbY.J~¡eke toapplO"~ the~geng¿,'a~p~~(f)Í1tét(. TJl(f,{giifJ~ª·.~ª;~PP,º"~d~(). " ...... ... .. ",,;, ,,' ·F· .... .. ... ,e, . Minutes: .. . "." Mi.irJèdliY'ZaiB"'$econ¡¡';¿ bY Rieke tcJ"~;;rove the mìnutes of the Apñl17, 2002 EDA meeting as presen~åt MlIlutes were apProved 3:0. !.'/;;"; . Delifz,arrived at 4:15 p.m. , _ ' . ........ '. ,. A~ùl1f$'P'ã!ibÎè:· - ~,,~;~,~~~1ø"!Ppn>ve1he~ A~,~~,'WiiÞi§¡j~kJ faVor",. - thè.'MOtiåil' the AcðiiùÍ"1t'$ Þayàble~ªpproVed 4-0. A . .' . " . AnaÎ TlfApjJli~tiºntøQhmanCön~r.:f.iOnMcWest -'···'.áf~,. .,.:'.,«......... .". ." -..' I . , ~ ~~~'!'1P~~ 9!.II\~"1lPj~0!""'Ó... .......... qf 1Iì<r...q'1.~a~~a"!Ï9~ ~~r!îíf,~~~ ..Í04.i!<O ~~,,~~iIt,!!i~fJt1b.<1balf.~ Gøh'!""l~9J1. .,.~, ~f.~ 1\1~,<;"'IT!F åppjîCâtiortReœiþtQf the $2,000 iippJicatipn PTOCešSîng1êè and the $15,000 'escrow to be uSed to cover the costs Of prepañng the ·TlF Plan was noted. The City's Financial ConsUltant, Juran and Moody has çalculated estimated the TIF assistance available for this project ' The adequacy of the TIF grading report form was discussed. Bo;ard members directed MDG to plac~ revision of the, report card on the next EDA agenda. '. FoJIOWÏngCnscussion, a Motionro recommend the City Council (1) authorize the services· i,t Jlid,n~if. Moody-to pmparethe TIF Plan find (2) call for a public hearing on the, TIFplan. Wêl~'ITlt3de b¥f5í.i¥'e".. Th~ motion ~s ~ecglJJjJ?,r:!þ¥J;I~ch;lheJnotior"was;app~v:~~:Oy '.. , . '", .,' . Request for Minnesota Investment Fund Assistance: Gohman Ço~cti0nlVic:"~ . 0-· . ' ,....... ..>.>.... ..' . . . StJâck 'providé,fan o'VèiViewof the project and a review of the request and action berorethê EI:>A. Mike Gohman was present to speak on behalf of Vicwest The assistance sought is in the amount of $70,000. The assistance is in the form of a grant to the City who, in turn, loans the pñncipal to the company. The City may retain pñncipal in an amount not to exceed $100,000 and all interest earnings. - The EDA reviewed the preliminary MIF application noting 'credit checks are required. ,1 -3 "- FoIJowing discussion, a MODon to recommend the, Cfty Gaunói! (1) authorize the services of MDG to complete the MJF applir;atjoo..providing the cD1iIpaný fûndSLap'pfJCation completion and, (2) c;a/I for a public hearing on the MIF p1äh wasmadè by Deut:? The motion was seconded by LDso. The motion was approved 4:0. ,,', , ' , Request fo~ Industrial DeveJópment Bond: GOhman ConstructionNÎcWest Strack provided an overview of the use of an IDB in this. pro~ ,The Developer and i1s FmanciaJ Advisor. Juran & Moody are progressing on the private transaction. The only Cny involvement is to hold a public heåring~w· àt.rthøriz~ tax-exempt status for,oond issuance. The City doès not incur any obligation in conjunction with 1he 'bond. No action was required, Commercial Redev~o'pment M update on the commercial redevelopmentp!Ojectwas providect Lettèrsand survey foims have been rnailed to identified property 'owners. The City ,tias not received any responses at this time., . Following ,discussion, MDG was directed to place follow-up phone calls to the identified property owners. Project Updates , A report outliriing' communication with various contacts was included in theEDA's, packet A brief ~ overvièW of several projects Was provided. Mayor Hosch updated the Board oñ a re-zoning request making its way through the joint annexation process. ' The Joint Annexation Advisory Board and a sub- - committee of the SteaI11S;, County Commission have recommended deniar of the request, aCèOrding to Hosch. 'The cævelopSr remains interested in the St Joseph township site. . City Admirústrator Judy Weyrens was asked to jointhe meeting (5:03 p.rn.)Jor a review of City options. FolJowing d;scussion, Hosch made a motion to recommend the City·Counail pursue annexation of County Roàd 2 from $teams County. Loso s9aonded.the motion. AIl VDted in ,favor of the motion. Weyrens will bring the matrerto the City Council's attention at their May 1dh meeting.,· ' Board' Member Announcements: None. Next Meeting , . The next offlcialmeeting of the EDA was scheduled for June 2Q, 2002 to accommodate the public hearings required for TlF and MIF financing. Notices will be sent Adjournment Moved by Loso, seconded by Deutz to adjourn. All voted in favor of adjournment, the EDA meeting adjourned at 5:20p.m. - - Lf 2 - -' -;å_~- -_.--,-.< ,-'--' ,..- .- : : ~ ,__, ~: '_ _. _,: _' ;'_ ~1:=-_ - - : "': DATE: Jûnëc6' 2002" .~~r\--~;': :\,~j;è)/--f '.~,J}/.__it~ MEMO TO: ~~:::C=~IDev<OQpm.rnGroup FROM: -_._....-~ ,,_0'-. .-~. ~ "-"'--.."- ,', BE: A.c:G?~!!~:eª~ªº!~·.Ma.¥, 2Qöî,"" "', " >'-,í_-.",_ '?"""-~'¡">~'-'>_'::,;,,_.-_. -.:')\-:i~h ': ~.? .' :~~:~, n~-~t:!,~< ,,-~, .-..-_.....,,_. .....- -_"",,"~_f·'","'>-'··· i.,.!': . "'.- . .-<.-' . '" '. '-_'._>~~ ';';,.-~'_" -~.,¡...--_t:~_7:;~:,"_ Attached ~ copies ófán invoÎcé forthe EDA's eonsideration of approval for May expenseS and a budget illustrating expenditù~tQdäte f:!ytlJet:P!L"" ,,' ::' ,:.;/: ~.i~;:1;,--,<).t}r~->iè~-- "J~:~~\-.-F~Óh~~.~'~~'>;~::5~/·+;:\":~· ':~r><'·,i.'-~t:j! '{, }-.-.; Action: A MOTION,is in order to approv~th~funowing Açcounts Payabfe: .'-" .. , Pay.abletø:· ,,~. - ,.for ' Amount · Municipal Development Group Inc. Consulting Services $2,639.30 ,--<,' ~ - -' - - "~ ~ - - .... - S - ---- --- · ,. INVOICE .' MUNICIPAL DE¥EL.oPIœNT GRoUP, IHe. 25562WJLLOW LANE NEW PRAGUE, MN 56071 952-7ss.;.7399 FAX: 952-758-3711 mdg@bevcomm.net City of St. Joseph Attn: 'Judy Weyrens City Adm i nistrator .PO 668 ..- St. Joseph, MN 56374 Invoice Date 06-06-02 Payment Tenns: 30 days Customer ID #: ST J02 , Project May Economiè.Development ServiCes - See attached detail , , ~ " Amount: $1,100.00 Monthly contract fee-28'hrs $ $1,020.00 17.0 hrsat $60 per hour $ 499.85 Mileage: 1369 miles x .365 $ ·19.45 Lone Distance phone charaes - $2,639.30 Total -- Remit To: Municipal Dev~lopment Group, Inc. - - - - 25562 Willow Lane New Prague, MN 56071 Dates May 2, 2002 Office hours 9 a.m.-6:30 p.m. C. Strack May 8, 2002 Office hours 9 a.m.-5:30 p.m. J. Foust May 10, 2002 Meeting with business 10-11 a.m. J Foust May 15, 2002 Office hours, Partnership Mtg and EDA 7:30 a.m-6p.m. C. Strack fJiay 16, 2002 Council meeting, 7:15-7:45 p.m. J. Foust May 21, 2002 Office hours 9 a.m-4:30 p.m. J. Foust May 30, 2002 Office hours and mtgs 9 a.m.-6:3D pm C. Strack Thank you! We appreciated the opportunity to work with you/ ~~~ I Principal - - I Check No, I Date: 0 ...>.,.... '.-'''' '."": '.-',",,>-' , ~ ... Ct.æRxI ÂD~R;" JudYWeyrens MAYòn I.arry J; Hosch ¡ CouNCILORS ob Loso :ory?Jilert CylCSchneider '.Ian Rassier ~ - - - Action: \,.'\t:¿:._:~};.~.\ . :}..~ '.,; AM'ÒWIQN JsinDrder to call for a special meeting on THURSDAY, JUNE 27TH at 7:0Ò p.m. This wiU~bep"iöjnfrÌ1eeting with the City Council to review the Tax Increment Finance Plan anci related Devèlöpers Agreement; review the project to establish compliance with the City's Business Subsidy policy; review the Minnesota Investment Fund application and to review the Industrial Revenue Bond relative to tax-free status. " - - 7 - - .. - Tax Increment Financmg, Plan ' , '. for' , " . ~' Tax IncrelJlentfmancing (Economic Development)' Distric . N-ó. 1-4 ~ - - - - - O\l~f1 / . Jur:JMy A Division oÎ Mi1ler Johnson. Ste.icllen Kmnard nond Underwriters.. FlfTanclai Advisors.. Investments Khmard Financial Center 920 S:cond A venue South - I W...inJp>...apoIis. MN 55402 I- I [ () '"=';........... r: - TABLE OF CONTE1\'TS ... ~TICLE: r:... DEI INITIQl\l~AN1)~~~~'¡;;' ",',~W'¡}"'~' . . >-..~ -'. ,-- - - ,... -' . ," ·$è:¢t10ft· i'~'o Deiinitiok ......... ..... .... '.... ..... .... .............. ,.......... .........;.~.;~~;:....&!...... ...,;L~. ...... ;.,........1 - ,~~~~~~ ;';-; cSectj,on 2'.6. " Siément of Need and Public1'wþ0BéC'~''''~''',,'''''''''''''''''''',,''''''''''''''';'''''''7'.,;.3 .;=J;~:; ,=i:~=::~:='~:::::;:;~~¡;;:::;¡EE:::;~§::;:::~:~:;!:::::::::::::::::': SeclioJi 2.Qt' ~nOD1ic .Development DÏS1ric1 D~ignatiOll."""""'''''''''...'':'''''~''''':'''''''''''''':3,-:4 SectiOll 2.œ Duration of1i:Je TW( Incrementf~aI'.!ºjng.pi@iét,;.~..;.i""~~"'''~;''''''';'~''''''~''''''':;~..4 Section 2.0£ ~peöi:fic 1?e\'elQþIlumi Exp~d~Ô(;t~ Wrtbinthe TIF D~oL.............:.,..,.;,~ ..' " .', '. " '., " ......". Lu ed" .' '. TIF···'··>'·/""',c .... . ,c. 4 Section 2.0. .' Property~ .~. ~c ....., d,;J!l,t!1~ '.' ,Ðtstnct·;"·:;;;"'-··"··;~~'···~·~'t'·"···"·"'·"·""""·"'" .Sê6tiöÌ11i.ßf_7 ,Fi'¢péii:; t(tb~ À¢qüi¥cl.JD tb,e'T~:ÐiStrlcí;t~=..:::.¡:.:..~....:~~.:::.·;::."....... ..... ..... .....,...5 S ,. 2 at p' din" d.N'eedfiT ,t .. ". "1'" .. '.. ...' , . ,.,... . ...... h' .-.. ection ..m gs an,o!:" ax'~Cre~ent. ~~~mg....""...;.......~......................;..;;.;......:) 'S~t,!oJl2.1 f' ..~St1~C()~~~~~~~bl~.cg$t$...;.;~~;;.....,.;z;,£..;..;,............ ................6 Section 2.1 J SS'6mil.t&í Aifi'Círinf,ófBô1Ìdêd.lndebtednesS ..........................;................,..; ......:....6 ::;~i~ . ··~~~:~;~~:3~~:~:~::~~::::::'::::=::::::::::::::::::::::::::::::::~ Section 2.i¿ ,ProjecfèdR..eœwed"C1w:tJwe4.N~t';fµÇ§Pà.cìt;yand1ì"ojeoted'I'ax Incremanf.....7 ~ ···,$f~. ··;:;~~i:;~;·~;~~~~;:]~;~~~;;,~~i~[~;i~:;;;,i;::~~;·,;:i:;:;:~~~ - ' Section 2.lS' Four-Year íttiíé" Lhnitåtions on Propen-ty Not Subj~ to Improyementa.,...........9 - SeçtiOIi ~.2(. Five- y~.I{~~ ,;.'f~ IncrementP~ö1ilig.........;.~;~...........,.-..................... ............:; 1 () , ",~æ~¥~'· - . =-~=~.:~:;;::î:::~::~:::::~.~:.:·:."··::f't::~::ii s=on 2.2.1 L,c.~ q"'jf~U\~~~~.~.,:",..,..::,,-"''''';:,.;:......,~~............., j j SéctiOIi~~4 fri9~~t~~Wg IW~~¥~Jr1;~...;..;..;.;~~:....;............~::~;':......... :.:.::..::....................1] s tj'?'''''''' Dd<t· tA '" rtS- '., .'.. .' ,'. " .... '. nV1 ec on _,..~ eve opmen greenu~n.. .............................."~.,'~.,!....................................... ,:,.. S~t:FÌ0I12.*t .. A.sses~meIlt~~e~~tsd;~·:;,;;\~.....::~t.:...:.....~..:.~.:.....:. ¡.............. ............ ...,.. ...:.... ] 2 Section2:21 Moâifi~~oÌlSo{t1jè T2Xz~~i'inancirtgP,~.;,.m;..........................,.........12 'SectiOn 2i2~' Ádn:i.iIfisthmon ottbe Tax-IncrementFmà.ncmgPÍafi..........................................12 Section 2.29 Financial Reporting and Disclosure Requirements........................................ 13-16 Section 2.3C Business Subsidy CompIian~ ................~.....~..............................,.......................17 MaP.. ~f1f.1~ Beve-1opJ !lent District................................. ....~.................. .............. ................,.. EXHIBIT! Map ijffue -.fax Jncrllment Financing District....................................................................... EXHIBIT IA Property Descriptior ....................... .................... ..,............. ....... ...... ..... .............. ................... 'EXHIBIT IB Sources and Uses St úement.. ............ ........... ....... ............. ............. ........n... .......... ..... ........ .... EXHIBIT n District Assumption I Report ..................... ....... ......... ....... .................... ...... n. ......... ........... .... EXH1.BIT ill Projected 1~ InC1'ßt lent Report....... ........ ...................'..................................... ..... ............... EXHIBIT IV ~stiro.ated Impact: 0.1) Other Taxing Jmismcùons Report....................................................... EXHIBIT V - MarkJ:rt. "í,' aluß Analy 3$ R.eport ................ ............. ....... ......;......................... .................... ...... EXHIBIT V - , - q rlU J.¿.:J.I> I'M Dl~"{U;:IIJ:> J&J1fMJSK @OO6 - , V'oJ{ ¡ I! U", - Article I - Deft riitions, IntfodUCtión and Exhibits JmJMy .. J- , c/ ,j-:;;WS Section 1.02 Int ·()dDction ì>L---xO ~~ . . /, The City Of St Jos<:phhas agreed to provide æx increIIiém :finaÌlciDg~nhma~ Cons1ructimlnn aIi effOrtto assist in tb.~ cOnstruction oIa n~w msnufacturing facility 10 ~.leasecJ:to VícWestC'.orpora.tion in the City of St. Jo~ Ib, It has been stB.tedby W. Gohman Const:ructio~ 10 the City 'that the project 'wilJ not beviabJewithoutp1'bIicparticipationlsubsidy_' i.: ~. ,.,..I'- ,', ,'. ,..'.. . The City, tlÌrcngh .~ document, wiU be esmbJishiug TaiIncrement Finauciug District No. 1-4 aud will be thè adminis trator of the district. ., Section 1.03 ' Ex! jbit Refmm<:e/Description , .- ,Exhibit I Th.il: Is a map that descrihesthe boundaries'fue Development District in which tbe Tax, Inel cIIÌen't Financing pistrict will·be established. Exhibit lA Th.i:isa map 'that descn"bes1:he boundaries of the Taxlncrement Financing District in whi :h the project genermiÍ:1g the tax mcrement~1l be located. Exhibit 1B ' Th.il is a Pill list/legal description of1he Tax Increment Financing District iÌ1 which the proj::ct generating theæx. ÌncreIIJ.entwill be1ocated. . , . .. Exhibit II TÏili . is a sources and 'uses 'sWement thai li.Dé items· the anticipated revenue sources for the J >Ioject and the anticipated expendit.ures for 'those revenues. . - Exhibit ill Thi£ report sho\vs the various proje;:t and diBtrict assumptions for the tax increment fuuncing district incJuding applicable dates, original tax capacity infonnation. projected - proj ~ct valuation, buildout, and various require,d elections. , Exhibit IV TIili- report shows the cash flow oÎthetBX increment over a ¡;p~ified p~od of time. It - refit cts c.alculations used to ...determine. ''Def' taxincremeni including variOus additions - and ieductions. . , Exhibit V 'fbiE report sho'WS the estimated impact on the respective Wdng jurisdictions Íî the . - . . captJ.red ta.x capacity was available immedis:telyiofue taxingjurisdictions. Ew'bit V This analysis indica.ies that the inc~e. ine~ated market value of the proposod devf lopment (less the present value of the projeCted tax: increments ror the maximum d\1I'2 tiOD permitted by the ID' Pìa:n) exceeds the estimated mark6t valu~ of the site prior 10 t1ì e establishment of the TIP District. 'O\t~~'\ - - City of St. Joseph, Iv. innesoœ 2 f() _.- . .. Artit:!e II -- T~' [¡u:rement F~na:ncirf~,/el,!f1¡;":..",,..;,T' "-';/W' \', i~* A ,{A;;i~1)rf-~:;,L):it "':_nO __~_..~,'.-.- --,y^,,_. c-.-~"'.:þ-¿"-- -,-~-~ ._--~-' . .,.","--" - - ,-,~~. ',~ - ',TAXîNCREMENTFINAJ~CINGPLAN, _ __,_-i j /:ttrS'i' ._j ;¿..:it.ié~~::::- :/_'_~{;~ '{:¡i~' .~_ ,1.'::·;i -~ ,,- .-'::~"'" ':::;-:~T/ .~1--"),-, \/t·:,~? . ;:->~1-!'~"- Section 2.01 ,Sta. :ementof Need and J:tubije: Purpose. i.'-,..n" ' '.' ._ _ __-_..:~::..:~-:_:__ _'-_;_:'-;,-~ __:::'~ ____',_:-_'::-- ____ _: :,{::::-~:,~,.,-.::-~,~, _ _ _ __ _'(_-:i -: !~~~lt,··,~t'.:__ _ :;.-~~·:t':··'::':-~~~:·-'{} ?¥-',_ ~.-{. > :{;.,',:<-::i~,-s' I;' .-' See Subsectió1l1:fb1 theDávelcipment~ for tb~,P~~Jj¡PJù.~I1t .p~çt,. ~ . -:-i.~~'-' <_;~.-.'- .~Ú-._,:,-_.'~-··)-:;:i:!-- ',S:ià3--é';_~:>;:.Y/F""- - -).f-:-Ú\:-j,::~-'.<--~~-:-f>-;,(-~~r -~-~-~-,--.-~ 0;.._' -- ',. ".-'.' Section 2.0:Z Sta' :utory Autbø,~~~n" , ,·B~;~~~~~~~;é.~t,~e·B~'~16~~;i'~;ärii-fôii1ì~D'ãV¿ì&~t'D!Xici. ".~e~~g~,~~(J~,,-,},.;~~,l,~~l1tot?~~~~;~;,~~~1_~;"···' ;-SectiÓn 2.04' ì&n ø.omi~ De.vèlöpmentbismetJ>esigm.ation' Economic deve]opn lent districts are a type of tax increment financing distTiot Vt.rhich consists of any project. or portions )f a project, not meeting the reqniremants fOund ÌD the defínitiòn of a. redevelopment , district. reI1ewal aIJ:i' renoyatioIl d~tri.~~9~,CQ.rr~~~4J~ot.or }Jòî!smg-rlititi.iêt{'bnt w}îì61lthe AmhQritytm4!>1o bt. inthê'þUb1iê:;ijf~$1.;~~~¥~,;;I'·:':~, -"!, '>'L"; '-, (1) it. ~iII discou~ çommer,c~?;i,t:1ëh1~~o.l"manufac'turi1.1g frort1.'movmgtheir, . "íi1peHitiOJl$iØanòthei-sm~tÁfm~i9ìpªYty; 0,r,. . " ~ .. _ (.2) it w 11 result inincteasedèffiþ16yme£ritiÌi,tlig'~;ör (3) it w: U-.:resul! in,~n:a~on_~9 ÇD.l1an,P~µ1~t o:f~ ~þa.!leofit.he StIlfei - - '-:: '~<-{~::~<. -:~ '.: --; ~~<-<--- ,-'-:'-, -- - - - .. . Th~ 11F Districtqu;t!i~es .8.San et:c¡)~omic,~~Y~}J).fIDl~tcµ~ict-,~t.heA.u.tbqriiYhas ,ç~t~Ít1~~at the ,prqposech!eve.ftIt:desCribe4·#i.~.ÆJJi:~{~~·. §~tioñ~.(6),m~~fß1Íwthè·ê1:iteria..Iisteª aDI?Y~" '1JI1e Áuthfuitywilld :>cunlenttbisa~~rìninåtigIlm~~g.< - . '.' , . ,- -, ",,:," \ JJ-/:j:_~:-.. _-~ _ _ ___-_,., ______ _-,:.-;. _:__\-,;-_ .,___-'<'~,--_:-,-:;:<>;:--o:;-- ~,-:-~-_-.<::-, ';:"'_--_-:::.c~--_:;, "~:"::----:, _:;'~_ '_- _'" _>_- .___- _,: __ _,-- ____. _- ,___,.,::__._:~~-' ;r~mcreméIit revtnué êÍerlved ftcurt:" àIi' eêóbom1cdevelopment district muSt be USed to proVide ÌInpröVements. lo&!~ subsidies, grantS, interest rate, subsidies; or. ether as,sistaTlce in an'y~Qrm.to develo!,rnents consi:ting; of builtIin~ 8.l1~·~8~H~ ~~~:> inwhi¢1:rllt) mor~~thatl151)1¡ oftli~ s9.~ fOQtàge;oft:hebui¡çh~:~B.'faci1itíef? 1oÞ¿ &Q~t&lat!M1Sed fOTa-parpCJse·otherthan~ ' ~ . '. - (1) man .1ÍaCturing or production oftangihJe personal pr(Jperty~ including processing resulting in tb ~'change Î1l condition of,~e~oPerty; , ' . " . ..... .~ '(2) ~t~ .-.ge anU~oûon 'f~~?re~;~~~,,~Þi (3) Te!;1e:wCì{and(i~vélopmentrelate4 to tbeBCtivlties listèd:in(1) br(+,)abO,VC¡¡ , .. ~_n: ;. '. (4) reler larketi.n.g if that activity is 1he exclusive !!Be of the prop~_ (5) tour: sm facilities; (6) qual fied border retail:tacilities; or (7) spa:: ~ necessary for,and rel8ted to the aotivities lisred in (I) through ((ùabove. City of St.. Joseph, Iv. innesota . 3. Il IJ~ I J II U4: I"Kl 1":;:;: I";U t)l~;:¡(U;;;:~3:¡ .1&.\1/ MJ::>K @OO8 oJ Arlicle. II ~ Tro: Increme/Ú Financing Plán y* L - rn addition 'to the 1J ses specifieð Bbove, ia:x increments may also be used for site preparation and public improvements, ü th ~ ÎoJ1owingconditions are met:' " .. ." (1) bedrDck soils c( nditjons arep.res:nt in 80 peh..~ or more, of the acreag'eof~ åistr:iot;. , .' (2) '!be estimated c( 1st of ~ prepiu'a.tÌOD of the site ex~ the fuir market value of the 1Md before completion oftJ Ie preparation; and (3) rev~nues are ~ :þended on.1y for the additional ,costs of preparing the site and'or ins:talling public utìlities, becauf e of unsta.b~ so~; and the b::'drocksoils· condition, . and reasonÐble administrative costs. Also, tax mcrem6If sma)' 81so·be used to provide improvements, 'loans, subsidies;;grants, iIrt:erostmte subsidies, or assiBtt Dee in any fonn for up to 15,OOG square feet of any separately owned commercial facility located will: ÎIl 'the. municipal juris¿ictkm of a. ftsma1lcityt<, if the rm'enues are spent only to assist the facility directly )r,for admin:istra:ti:ve expenses, the assÌstance is neœssary to develop the ÎaciIity. and sll of the in.cr~meD' s, except those for administra1:ive expenses, are spent oDly Îor acrivit:ies within the district (see M.S. Se ;)tion 469.176, S1.1bd. 4c). Section 2.05 . DUI ~OB of the TIF District .' , ' Economic DevoloprJent distric1s may remain in existen~ears from the date of receipt of the fusttax increment. Modific, rtiòns of this plan shaH not eKtend this !imitations, The Authortty n:serles the right to allow the TlF District to remain in existence thë maximum duration ~ allowed by Iaw (prt jected to be through 1he year 2012). AU 'Œx increm~ts irom taxes payable in the - year 'the TIP District is dece.rt±fie:d shall ~ paid to the Authority. . ~tion 2.06 - Spe. ¡ific Development Expecred to Occur Within tDe ~ District - - - -' 1:'JJ.e City intends. t: enter mo a. cOlitract with. \Y. Gohman Construction rega.rãmgtheir pI"OPOsaÎ'ID develop andoWD. an.approximare 61,000 sq. ft. facility tobeJeased 'to VicWestCorporation"subsiåiary of Magnstrax Ccrporat ion. The proposed projectlncludes Î ,000 'sq. feet of offj~ space with '!:be remainder used for production The facility will be single story and construC'ted of st~l aDd block váth. ceiling heigb.t~ nmgIrig frCD', 12-16 feet The project is expec techobe started in the summer of 2002 and the CitY. anticipates the project win be completed by year-e ad 2002. The project should ~ 100% assessed and on the ta..x rolls as or JanlW)' 2, 2003 for taxes pa-yat Ie in 2004. " , ~ Socii". Z.o1 Pa.. .l{.} to b. Included ;n tbe TJF District 2, v.. þ..~ The property to be ÌJ Icluded in the TIF District is a27+ acre of hmd Ioeated in the City. Tfu: ound.aries of the TIF District l:re reflected on a map attached as Exhi'bit IA. The following pareel identification DUI1lber(S) (PID#'~) and corresponding legal de¡;cription(s), a]ong with adjacent rigbts-oÎ-way, will be inc)uded in the TIP r listrict: . . Par-..el 1D Number/L ¡gal Description S4.53470.229 Lot 1, Bl00k 2, Buettner Business Park 84.53470.227 Lot 2, Blœk 1, Buettn~ Business Park - ~\ ' - The City Jffqf-mrc-.fo iec.rea.'ìe the "ize of the TlF disrrft:t and only include a pOTtion afthe ahov~-lLrteð P 1D# 'so The e:ract r( plat is 7Òtknown at thiJ ttm.e. City of St. Joseph, Minnesota 4 17 ~OOg ~ , , · ~1Æ Artick n - rID: IhC1'emet!t r_cin.ç Plmt .J';c:t" - .. ..·...it;;·., .'... '.. . ,. '., ..r;;'<'~;~:"j,.<-:.~:.~.\", - ~9Ji 2.08. fn peny.tobe Acquired iíitl1é m District : - Þ . "~""" ,..."..,~'<... '" ,,' .~..~, ..,.,.",.,'.';'.c.'.. ",." ,;dot",...!". '. ",/'k, i:.'; . .' ~rq The City do.. DOt ÌlItonrI '" 80quire anyPt<>pò¡tý~ tiieTJ]>di~ . .... ~1> 5\\' s..";,,,,2J1!J., ~~jj,,!~d~~ ;ør~(~:~ ..". . ' " j!~ ~,...!.'tiiiiíIes, tIl. City_1Iœ fo1Iœvñig findUlg¡¡ in COJúunction _ the e¡wovaJ of "'is tax mer..,.", faanoJng plan: " """.',,': " "',," , '. , " .. :~,r!~"~~~;'¡Z;¡¡;~~;~~&;:~'¡~f~... "'~"~:"and . st¡ì>;>Ò11i"g ¡¡.,n, ¡¡" !'>~~;~!1!t\WIL:j)~;<i~io<!iw;wrj/j!¡gOni ~4.ª'1d ··"~:~.~f&'1'=~f~~)\~~:'.":. '{Zf Th<:Í>#oiÒ<lilov~~. ~. ~"JI!,:j¡f&#¡~~~:<>f1þe.'5õiif'1"'Ì9~.1¡", ....,~~~.;,q,~i¡fo~.oIe¡ý~~,;!W~~,Wi!hi,iI:ÌlJ>~þÌ!! 'f··'f~~·~·Oni""·r;t)f"¡¡¡~;¡;¡¡r~~~'i4>''1f:tbe~.tht¢''':o!'ld ~~ i;J~r~:';~~~~ri~",::;r~w~t:~ subhactiD.gthe present vaJu~ôf1hepTöjecteatà.Xincrements for the maXimum durAtion of~ ,. IIF Di",ic' þenIIit¡od by thóTIF Pbm;: , ..' ' '..:....,.~,....{\:. :··Y··+·"'d,..,,,~··!.t~,,;c; . ' . W. :Joinnan Consttucti.."".:~ $'ih"þJiÿ in wrifit¡g tbot~ \VOIiI4,~~'ÞO: Viatlo to una"""". the.. ~'ea,F'#~!'PL~!:!'!1¡':"'''''''1Ient¡;¡'orio\Qg. ~8~'J~ce.J:t.WW·1l~.f1J;J, dete~~tþått.her9.'~1Yè.~i~;,~provementcòstš pfdhíbìt tne' ~i~tiOlJ.ºf ¿:r~ºrl.~ble'fmancjâ1'retúr'Ilon investnuint. ' .. --.-. , . - A c.~ an01ysi. of ··¡¡"'...d IIUirk¡¡( 1'i\l~!o,I!t'l!i~¡Jµ!j:WitbòÛ' .,¡,,¡,¡¡stiJ;\Oíif of a" TIF Pisbi.. "dtbó use. of tax ÌUÇre¡it"""¡¡¡¡' been þ.rl'-.,¡ .. ~"d~1>oy. - and is sb_ in ~õi'V'. ThîsUUa).ysis~i~1I,e.~.in~~~~e; ~.. 0{ *,~se¡j ~fb¡!mí"t(1...~· ¡i~v,"", <4t!1.J>r'!~t;'<;'¡"",!!,#: , - Wf"~!iu<lÍDn!i""~d1>Y1Ii' T!J'1'!~¡ex<eeâs'iim~d~V<i1'" Oft1:;#Si~p:r.¡(;)rtº'tþ~,~lj~J:lJhÇ]lt'Ofth~TJ);i'J)iSi:fiö~,· '. "., '.',' J" '.' " ß) ~~l!'~i:6~¡"tÍ#~'Þ1#f"i~~~WitØt~.~Wit oft!lé Gi!ý~ ."~'1'~",!1!e'IW J:'Janimsœen1tdQptedbý iim City P1annin~Cormnissi"\'eim< . revi, .v andinoJdng tIl. determilUl1ô,,\,. ~!J!' 'IWl'lIon.OW11P1i..'wlifj, '!he 'Ci~Ù com ?!5.~~iye plan.:; . .,. '. ' '<',',?.,' . '.." ." ,...... (4) Thè·jJþ~Ì'íi¡»!'tjn~4.~>UiÏmum~îiÿ,?fns1~¡ Wïth~_ "Oed. of the City .s · whole, f:"f iim.dev.!opmOD!; or red-!6pmeuf; of 1Iœ Project Area by p>:iv... ente,prise., : ", ' The .òio/!ibi!, tb.f tl.i development 8Om!i.. ... =ssa'Y so tIuà d...!opm..! and rede leJopme.nt by private enterprise ~ OccurV{ith.ht~~jfot Area, mctudingbùt nòt lÎmi1 cd to, the ProPOsed W. GObroan'C'ODS1:ru.ètÎÓD projeCt ". .. .··'·.~n' ~f1 ...,{)¡, City of StJo.eph, M inn..o'" 5 '/~ . 05/17/U2 !<'Rl H:24 FAX 6123702935 J&H/MJSK 14)010 L !urjMr - Ar.ticleJI - rID ;lncrement Fi!Ulnc1ng Plan ' - Section 2.10 Est imated Sources of RevenuelPnbllc Com The ~timated sour' ~ of revenue, along v,dth thees6mRt~.d pUblic comef the ~ District, arei'temized and attached as Ex wb.it n. Such.costs are, eligible for reimbursement ,from tax increments, and atbe:r listed sources of fe, enue from the TIF Distrlct~ ' .., , " , - The Au1homyl'eseiveg the rigbtto a.dmin1strativejy adjust ,the amDUIrt oÎ any' of 'the items in Exhibit n Dr' to incorporate addit anal eligible i'œ'ms, s,!long.as the to1.á1 e,stima:ted pu1Jlic cost (uses) is not increased. ,'The Authorfty antic .pates providlng ñmmciilassîstancetp 1he propOsed develópmeni through the us~ of a pay-as·you-go struCturei' As 1aK: increments are collected from 'the TIP District in future years, Ii portio~ of these taxes 'will b ~ distributedtc 'the deve1oper/oWner asreimbursè.ment for public com inOUlTed. The Authority reserres therlght to finanœ any or All public 'Costscf1beTIF DistriC111Sing pay-as-you-go a.s.sistance,internal,funding;genCrâl'obligation or ,revenue debt, or any , other fInancing rn~ìumism 'auilioriud by Jaw. The Authority a!so!'Cserves th.: right to use~ sDurces of revenue legally aJ>plìc.able to ,tœ 'P1 Djeot A?--a. to pa.y Îor such costs including, but not limited 'to,speciaJ assessments, , ìttility revenues, fed~ral-or S'taœ funds,' and investment income. ' . Section ~11 Esti mated Amount of Bonded Indebtedness rll~e Authorl1Ydoes lot anticipate issuing tax increment bonds to £nance the estimated public costs oftbe TIP District, but Ies,JI'Vès the right to isSue such bDnds in an BmDU11t not to exceed $511,400. ~ '- Section 2.12 Ori:~ina1NetT1iX Capacity Upon or afrer·adoptìDn of the tax incrementplan,tlIe County Auditor. upon request of the authority, shall certify1:he original !let tax capãcity of the TIP District.. Tllis value.....'wi11be equal to the total net tax capacity orall pÌ'd] tertyÎD. the TIP District as certified by th~CommìssiODe! of Revenue plus any a,..·nouJ1ted detertnine d under M.S. Section 46~ .177 su'bd. 4. For districts certified between January 1 and June 30, inc1usive, 1hÌS value is bf1Se>",d on the previouS assessment year. For distric!:3certi:6ed betw~n July 1 andDecembe' 31, inclusive, 'this va1~ is basedcn the CUtÌ'ent assessment )'ear. , ' The Est.imafedlvúir,tetValue of 1Ù1 property within the TIP District as of January 2, 2002, for ta.'\':es payabJe in 2003, is ::4&2,900 with a Limited Market VaJue of $308,700. Upon estab!ishm~t of the 11F District, and subse\: ¡rent reclassification of property and completed phase-in, it is estimated that the original n~tax capa. ~ity offueTlF District will be approximaiely $8,158. Each yeàr the Coun1 r Auditor shB11 certify the amount that th~ original net te...x capacity has increaseà or da...nrea¡¡ed as a. result of: (1) char~, in the tax-exempt: s1afÙs of property; (2) redu ~tions or iiilargementF of the geographi~ area. of the TIP District; (3) c.h.an ge.~ due to stipulEticn agrø-ements or abatements; or R ~'f"\ (4) :::~ges in property clas!:;iijcation rares. \)'ß Ii - - City of 81. .ro¡;~ph, Ì\~innesota Ô , I @Oll · Article if - Tœ :Increincl:t :E&zandng Plœz"",., " :~~ u;:~- :;':';;-;.;; \~; ;~\~1.k ::'-~~"'U--:.-' . ..... ' .. C",'M,:,·"?':,.;;·.., '. '. . ,'. .'. .'H...,'...H ".,.. -'BèL1i~~2.µ ,Qriginal'1'ax,<Japacitý:Râtè - At"", iim~ of.the ;,,;tla[ ~<iat;on of the O\igùia¡ not 11¢~i1rÌ9t,,,,,,.,;,,, ~~:6nopc¡.ùg distriof, the eou,n,. ÄU<jÏ""..~n ~""'~¡~~'\!I!1~~41iá\ 11I1PJi"1'1'!1!~~J1j¡;¡¡šf¡ict. ;1.i..I~~I¡.!:: "Ù""!t!ix'Ca>Bcit,yio re;¡"",~~ not... ~i!jiofthe~ 13jS!riël ¡"t¡"1I¢~";'¡h.. . At... mn"tbis dø'."-'t_~".. tIJo.~<>ii!l1~1\!!> ~~.~1ì)~;"tTio,P!' Dïst,ict.!OE~I!;r¡~JI\}J!!17"""~.""~II~¡ .."¡;~~~¡;¡,¥[W..,, tJili;4oJid 'becomes . ev>Jñ¡¡;)<',1HiòiCÖ....y ....1JÕitDrslJål1.~ "'I. amoontao lb. ~ ""'oa¡>i!oiry.... offu. ~ 13iStrict Fot ~. of eOti.'IIØfj¡gthe'ln.ÙIcreme!tt ¡¡en~ !>YJ!!f,.~.~1I¡~'"'!'1"lífitheI0ca1'" -. fOI~~~!~~,i.~c:~q%::~~~~i::b.~~.~~~?2~i~;~!f·?f5t~~',AAQWi!b~!~W~"'; ;;·'.',(;C~\i , . 2ºOl/2DP~,. Tax.n~Jurisdiètion, 'l"'LðcàITàxRâfe" :'\ . .\._--~,,:_-,-~.,~-, C~ of St Joseph 46.006%. ' Ste~ rns Ct)unty "" .·..·,..C,.,.,·, '.' '. . .ß4~87.7%,' IndtpenÔeìïtSchOOlDi:strlct~O,}42 '.' ;"Jj.056% . ~r .. . .. TotI L n"~J, IJ1!;$3~% .-. - .'... .H. ." '.' ". '" ...,..........', ,.'.......,.ú,.." ' Secti(l~~.14· Prô,.'.èctèd. R.et.âi~élJ~RtiWedN~t.~Jg-CapäCiÏ3f and _ P1"C! ectedTaxJQcr(;meiÌr _' _ _ _ . "-'."'-.. - - - ~!'¡iá!'''' <:;-t¡r¡4.!Idifi\¡'~~'ì!t!i.~n.ot ""'~.ot¡;¡r~t¡r "'the- ~Òt,:t9.tJ>',""">¡¡t~~ tþtJi! eJ!Oee\iJi~'Ori~n.H.x~; ,~~'" $baI¡ beJg¡own asllie;,captiì~~!tl1ettLxcap@j~. ,:~fth(t'!'1Fq'8trl,#" .'. ',.."c"',..,,,, . - . .-. ' - '-", ,'-' - - C--'..', _C_'. . - - - - .. The~Ânòil<lt~haJ1.-y1ìS tbfAmì(&.,¡i;\\ ,;"øòn;,,,'f~;¡«t'lÆtiäj,..îiy oaéh )'eat, The Aût11ocltym.y ebbo Ie to_ aoy or a)! of1bis ¡""oum. It i. the Aù!h~. ~o/\.to~ ¡IID%<>f fue. ~ 'Ie"'" ca¡>ac!1y of "'" .1JJ'J;>~, SocJ!'''''''''''''"baJ¡ 'bólq¡øWn á!1i!¡òTe/aipeð ca¡>tured net~ Clipa.cify oftle'I'IF'J;)istrict. . , , " '. E¡¡i,'!,jtJ¡¡g¡".. .Ij .w,goftht '~ù<î;;("r~ 'J"Í .-mptfuù< """ iJ¡~~~ a ~'" of ,ìi. ~ib!tf. """"."''''';' 1bis ~. j'1";;¡¡<1Ju.;;"g, ~Ii# JV, whieboshew, th.,""Jecto4~¡pcrem... gë II. ',..e. r...me. . ·...d oyertheaJlticipated Ufe· òfth èTi;È P.:..l~, ; ct,.. 'Ù¡' . ," _.. - - - '. - .. .. -.".-. " . '~'f;'1 -ni! l¥'~èi~ " tJJ ~),"\" . It City of St. Joseph., .Iv. ÌDnesDta 7 IS- · 05/17/02 FRI 12:25 FAX 6123702935 J&M/IrJSK ¡g¡ 012 ~ ;mj~ - , A..í1iête H ","",T~' Increment Fintmcing Plan - Section :US Use ÐfTax: Increment ,', Each. yeartÌleCm;~' TreaSurer sbaJl·dedUct0.25% (subject,1Ò chAnge in 2002) of',the añnual tax ID~m=n1 generate< by theTLF District ànd pay such amount to .ihe.St2.te'-s Gen:n1 FUDd. Sucb amoun1:s will 'beapprop.rie.1e<1otbe S1ateAuditorfor, thecOS'Ì offinancia1 ~g and auditing ,of tax mcremen1 financing ÌDformati mihroughoutthe state. '.ExhIbit IV shows th~ projected deduction fOI this purpose over the Sl)t;jcipated life ofthe TIFDistricL ¡', ~- . . '. - - . - - - . . , , . 'fheAuthÓrity'has c etermined that Ít'wíi1 uSe 100%ofth~remaining tax increment g~d by the TIP, Dìstri~ for zmy of11efol1owÍngpurpo~s: ' ... "'< , . (l) pay for theestiri1a:ted public costs of the TIF .District' (see Section 2.10) 'and County a.d1I ini.st:nrtive costS á~socìated witbthe TIF Distrlcit (s::e Section 2.21)~ (2) pa.y principal and interest all tax increm~t bonds or other bonds issœd to finance ihe estÏJ Clated public oosts of the TIF Disttict; (3) acC\ mulate it reserve s~uring 'the payment of tax incr~ent bond£; .of other bonds issued to fi,laD.cefue estimateà public costs of me TIF District; (4) pay all· or a portion ,of the county road costs as may be j~red by the County Board und'G:'MS. Section 469.175, Subdivision la; or (5) rem n eY..cess tax increments tc' tile County Auditor for reåistn"bution to the City, Count'¡ ~ and School District. ~ Tax increments frall, property Ioeated in one county must b~ expeI1àed for the direct and primary bet¡efit of a. project loœwd Nithin that county, unloss both county bcRrds involved wa..:ve this requirement Tri..x IDcremen'fE shall Dot be used to circumvent levy limitatiOIlE appJicabIe tD the City. '. Tax increment- shal, not J[)e used to fin'anc~ the acquisition, construction, renova.tiOD, operation. or maintenane¢ of a milàmg to be us~ primarlly' and regulÐrly for ccmducting "the busÌDessof a municipality, ooLÌnt:·~ ,school district,· or any oth~ local tmit of governmont or tbe State or federal government. or for :. commons area used as a public pàrk, or a fnciüty used for social; recrea1ional, or conference purposee. This prohibition dDesnot apply to :the consiruction Dr renovation of a parking' stru.ctu.re, or a privatI :1)" ownedÍRcilityfor confere,nt:e pUrposes. If there exists any 1) pe ofagreement or arrangement provjding Îor the deveJoper, or oIDer beDeñcia.ry of aEsistt1riœ,to ,Tepa)' a11 ora portiOD of the assistance that was paid or financed with tax increments, such payments shall ~ slbjeci to all of the restrictions imposed Ó1l tbe use. of tax in~ments. Assistsnce includes sa1e> of pro¡ erty at less 'than the còst of acquisition or fa..ir market value, grants, ground or other lell.5cs at less then:! ûr market rerr"¡., interest rate subsidies, utllityservice c.onnections, roads, or other simi1ar'assi<;tance trut would otherwise be pajd for by the developer or beneñcia..T)'., ~ø ~f' \ ,.,,("'~' Section 2:16' ExcI SF Tax Increment ';;!ifJ\~ . In any year in wmcI. the tax mcrem;:nts from the TIP District exceed the amount n~cessary to pa.y the e~d public COS1 s authorized by the TIP Plan, ihe Authority shaJj use the exœgs tax mcrern61l!s to: (1) prep,l)' any outsænding tax increment bonàs; - (2) discl arge ilie pledge ofiaX mcre..ïleI1ts !hereof; ~ (3) pay iIIloums ìnto ,a.n escrow account dedicated to the pa.yment of the, tax increment bond;; or City of St. Joseph. M ¡nnesota 8 1 t ISJU!;:S .. . A.rticle II -- Taa . Inaement Financmg Plim, , .. ,~My . .: -' - '.-'-"- "- . . -'.' c- - -_~_ ;' '. .. _ _ . -. .: -'. ,- "-", ~ - .:,' -' -'{;,-. -~ --, é -" '. _"_._.H' . "___~ . -". . . . --., '. - - ~ -. '--' '. -' _', u. _ _ . - .. - ~ ':". . -- '~'-' '~<' <'.-'> - - . - - . ;-',.-.." ., Ü"; ""'__ .__n' >~. _. ~ .,- ~.'-- 'l.~_f{":'- , "'.,", --..... '<; .~-;-. - .'·_r__ "">-. (4} retl rn êKOes$'taxîliç~ents 10 the, County AUditor f'o~I"efiistributi9flto ~~'Cì1;y"Cqí:1µty and Scbool District'J:'.he q~~tv?~µtJ.itOtµl~Teþ()rHO-1heëo1Ìifuissioner. of EducB.tion the amotmtof any excess 1Bx mëreDlent terlist:ri'b~d 10. tb~ßch<:J{)l J)j~pt ~tbÍ1130 ,>~~~.ì)~r~~~~~~~~R~. ";¡DiF,;~,;"'~"';'" ,..,.' ,', ' , .--, ~~~~~¡=~,~~ ~!1~-:~¿~'~rmi€ß;t åf coU£~'~ improvements ol1totm6reìn~t revéD~"ifthè, foUowingcoJ).ditìQ:i1s OCC1.Ui.' ,'" '. {1~ th'¡~~'~ðÍ!¡W~\,:¡r~~~~;~';;";~~1!~Y in=B.<othe use of COÛIlty roààs reqn~,g 'CDJ1Structton of~ J~)JI'O"fW~ts ,(¡F,otl1er romi costs; ,t2ì_' ~i~;~ti;:~"~;~~l1~~i¡~¥¡;¡¡cêon ~fuùo fivo ... .... yéa is undci tl¡o """"0/ capiœ¡ im~ODt plan,·· o¡ ímotber f.".,.¡¡y ado~ COUIIIy pIa: l . and ÎQ, the. Op~OIi ~f~~,~~~i,"tYqu.l~, n(JtT~~p,a~JY'ÌJf:iei~cted to be needed . .... wjt'"'1h·~~lt!;O'~~1¡;~~;~~II1AA~~~!~ . If the "'ìm\Y oJO"'" "'.... "'" ùoorem""Ufinance thO toad im""'"","",,~,,!,,,~W nnioI~otìJÿ the authorityand munic,.pfÛib"witlùi:l4ð>fia,:y~~~,~ç~ipt,Pftñe pr~S~TlF'pl~1Ù'Id~r~ubdivision 2 and thecountyimâ TfiÙJÛ}iþíilliy' mustcómþly'\iV!t1; tþ.~>1:~s;in 'M;:S.Sèctión46~: 175; giiba. 2(b), , , ::, <:F "__\; _:~ttr:-:;.--'-~;: ~' 'ë. . SèctitÚi 2~ig. Thr *' Year Activity RIde - - -- - - - . r.¡o to;< .~"'!~;'''¡¡h.J!'li¡!lothe AÛ~Tfø! ~Ji{.~~t~t¡"¥.rý~ ,_tho 4afo <1 oerti~ of~;'¡~~~~ ..,¡... 'Yi~:~~~~:"", (1) , . boJi<'¡¡ h¡':. h';"",...ec! ¡,¡,.;q<>f'the ~oct'6"fã;"in~¡j¡. dfBtrict p"""""'! to section - 469.L 78, or any otherI~w~ exceptrevenlJÇþopdsiss~~ pursuant 1o'MÆ, S~C;r ~469.¡S2 104i).9.16$~ .", . .." .' , , (2,) ,~~;1.q~t40Jj~lhAsacq~.~~,-w1thJn~~~t?,istrict; or , (3) the.l Luthority has constructed PUb~;}mp'rovements, w#hin th~m~])istric1. .. O~~f"t Foe: '- YeM Rule - Limitation on Pr~Jle~ J:'1~tÆ~i~J~;to. ~mprov~ments Section 2j9 .- .. . . :_~ - ~--~-:- - -.- - - - - - - - - - - - - - :- - _:- - - -- - - - - - '. :-". " - - -. -. .-' - _: - -.--. - -- - - - - - - - - - -. - -- - - - - . If áfter four 1e81'Sfro]Ji'~e;tiñcatioA Qf;th~TIFJ)iStTictno·'ª~oliïi014rebabilitati()Jl.renovatiDn, or ' quä.llfied improvè1Ii~ lit of an àdjacent street has corrunenced onël:'parœl1ocated within, the TIF District, then tho! pm-oe! shaIJ. he """luOed fum¡ the TJF District and the original net 10>: c~~!uill he iI<ii_d accorilingly. Quâlif ~-d improvements of a street are limited to construction or opening of a new street, rei°bati(Ii cf~stTeet or subsbmtial reconstruction or rebuild~gofan~,~~ ~t. TheAuthorit,Y must submiiíQ thì; COUnt r Auditor, by FebrtJ~ 1 ofthe·fiftb"/'ear;'~¿\'Jderili¿ thai t11e required activity has take.n pJace for each, JaTCè! in the TIF Dllitrict If a parcel is exc}uced from the, TIP Bistrict and the Authority or oWller. of the parcel subsequently commences any of tf e above activi1ie5), the Authorny shâ11 certify to the Coutrty Auditor that stich activity has COlIlDlenced and :be _I s!in!1 onCe ~be iuc1.ðedÙO the TIP Disirict The Couno/Audi1orshaIJ - certify the net. taxca mcity oftheparce~a.s,most recently. certified by the Corninissiöner of Revenue, 1Lnd add such amount to t lè ,ori~jr.aInat tax capaci1;yof thê TIP District. " - City of St, Joseph" Minnesota 9 17 .. 05/17/02 FRr 12:27 FAA 6123702935 .I&.1!:/MJSK ~O14 8Mdy - ArticlèII - TlL?: In,crement Financmg Plcn - - SectionZ.20 Fl",~~ Year .Rule.. TulncrementPoolií1g -;,. At least 80% {)f1he taxincrèments ftom the TIF District must.œ exp~ed oIiactivtties witbin the district , or 10 pay for bond; used to :finJu¡ce the estimated public costs of the TIF District (see Section E for 'addirlonnl res1rictic ns). No more than 20% of tOO tax increments may be spent on rom outside 'of the TIP District bm wit hin the boundaries oftbe Project Area, excip~ to pay d--".bt service on credit enhanced bonds. All Brlnj;nt· trative expenses are considered to have be::n spent outside of theTIF District. Tax íncrem~ are cons iciered:to have ba...en spemwithin tht'TIF Distrìct iÎsuch amounts are: (1) a.c1I :ally paid to a third party. for actiVities perÎOrm~ wjthin the TIP Di.strlèt within ñve yea. "Safter certificationoftbe disirlct;" (2) use,! to pay qonds that were issùed and sold to a 'tlrird party, the pro=ds of which are reæ onab1y e>..-pe;;ted OD the date oÎ issuance to be spent ....vithin the later of the ñve-year peri cd or a reasollable1emporaryperiod or are deposited in:a rasonably required reserve orr:pJacemen.t fund.:' (3) \lse.ll to inak~ payments or reimbursements to B. tlÌirdparty under binding contrects for acti/rues performedwithin1he TIP Dlstrict, which were entered into wit1ùn five ye!11'S afte .' cerlificarlon oillie district; or - ". .' (4) use¡ 1. to reÌIIibui-se a. party Ïor payment of eligible costs (including . interest) incurred WitLin five yeaTS ftom certificationofthè district:. .' , In 11 Ie case of a'housing dis1rkt, used.for a. housing project, as defined in section 469.174~ - (5) sub< livision 11. - Beginning with thI sixth year followin.gœrtification of the TIF' Dìstri~ at least ,80% of the tax increments must be used tö pay outstanding· bODlis or make contractual payments obliga-œð within the fust :five, years. Wt en outstBndÎngbonds ha.ve been defeased mldsufficient money þis bæn sei aside tD pay for such cantrac tual oblig,atioñs, the TIP Distlict must be decertified. ' - ' ~. -" . . The: authority may also elect to incnase by up to ten percentage points the p~ed amount of expenditures ror ac1 ["iries loca:ted outSide of the geDgraphic nrea of the åistrict As permitred by M.S. Secûon 469.176, sullàivision 4k, the expenditures, including Úle prior permitted 6..1'~ditures. ne"'..d not be made within the. geD µ-aphic area of the projeot if t1w expenditures: (1) are .1500 exclusively to assist housing that meets the requirement for a qua.1i:ñ~d low- inee me building. as that term is 'W!ed in section 42 ofíhe Internal Revenue Code; (2) do r at exc~d thè qualifi~ basi~ of the housing, as defmed und8T sootion 42. (c) of the Inte na1 Revenue Code, less the amount of any creãìt allowø....d under section 42 of the lñte: nal Revenue Code; and (3) be u ¡ed to: ... $tþ.f'1 a) 8cquire and prepare the site oftbe housing; O~ b) acquire, c-on~t, or rebabilit!ræ the housi.,g; or c) make public improv:ments directly related to th~housing. - The Authority does: lot anticipate that tax increments will re spent outside of the TIP District (o~:.c....jJ1: fer - allowable admiillstr itive e-....penses); however, the Autharit'ý dcx:s reserve the right to allow for ta..x increment pooìing fI)m the TIT District in the future. City of St. Jos~ph. Iv inn:::sota 10 If) ~UJ.¡¡ '" Artidf:e 11- Tœ : Increment Financing I:lan ",~~y ; . "'. ..-' - ".: ,-". - -:,;. ': ;-'~. --".::;-~';; , " .,. 1.. ,~:. . c:' ,\ c ,.' '-.".,' . . '-''''''.-,' -, .; ..- . I . ;,.; ',t,~~:,~-;.-i '" Y;-~>i~>i;-.'i -. .,.'.-. ' , -"-/~"~";;: ·-.,i~_ ,- "= - " . _ ..... ._.......__. ~_ _~.,'·.,1>~·c;- -, Section Z.21 "Lit UtätiöåoiìÁdlriift~trätive Expensl!S ~V<;ii~¡;.~'S~~~~~\f"; .. ., (2) aIDCIUIrtS paid Îmt mäteri$ and s~rvîc~s, inC1u(j~g;~ê}ji±ectútåì'åhäèfigin~g s~1~s dire Dtlý öonnected with the proposed development Withm th~ TIF 1A~ct;i,,:+, ,i ·····~:.r~~8~:s~F~d.ð~~~'&¡~jÆ;j¡;j$)2!# ~;~~~i¡.J~~i¡:;;;~ itñeTJ.FDistrict;.Q]¢~iDt#1Iieg'tS'IItaY:bèu~e~~pa"xJµiJDinis1mtìve'e1tpeÍ1ges,òfthe TJji' P1sfrlctMio1b.e; JesseI\oî(li)lí1%·ofthe;tó1:å! 'esffuiàted p1.ìb1iècmsts. authorized by the TIP' Plan or (b) to% of the total tax increment expenditt: res fur the project. ' C Section 2.Z2 :E~ti mated ~pf.ct on Other 'I'a:rlng 'Jurisdictions ~;' Exhibit V sho\~~ th~enimated ffñPfl6f"(jft4Ó'tn~;taxhig~~cti'on¡¡ if 1he, maxi1DulTlproj~¥ retainrtl capturednet,t&.X .CRE,~íty,?fthe:: 1~·piSWi9~~as1lx"P0!À~tíçaIb"av;ai1áb~e,to'the'other~gjuri~Îii()ti0Jt~. - :Tþ~AµtbQrity,beli~iestlìatih~~'\¥.~j 'be~?,a!l.v~hIlP~ctQ~'othettaXingjL11ÎSdicti0n(ðuting tb,eJjf~ or fue. 'JJf' l)jstñct;'Sìri~·,,~,pr()pDs~de\reJop1.Il«mt ·.vvou14I1otpaveoccurredwithouttheeståb~shfuentpf, - ' tho r,QFJ)istriotmi¿' thepro\,isiotÎ()rpµb1iQaS~tÐJ:tOf:~;Ap(jsiñve' knpact oIi,-othêrta?".mgj11risdictions Mll"QcCw whett,1be1,ª,' Disi:dCt'isà#rtïfiëd'~cl1:1:ìe, 4oVe;]opiI1ent ·therein-beCQInespart(¡)tthe,genèl1l.1 tax. base" ~,' ,'. ' . '. "..,' . - - , . Section 2.23 LO'~iJi{ióver'Î1"eñt' AidF~t;MtY" :m. ~1' , .- '.~- ",-1-.1. - M. $.20/3~1399'V\'$ r:~ïeã~th~~?O~,I~~li{~e'B~~on. \~rv¡.".~ ;;'....':.!~ Ii'! ;: -:;.~, " --,~ -';,' " Secü?n 2.24.; Pritt' ~Íåliliid ¡ÌÌtipî'6ité~~~fš" The Authority shall accompany its.!~que~~,forcertific~on to the County Ailiiítôr (orno~d~ofdiS1Iict, ~1Jªrgement).wìtb ~, Jistingofâ1lpröpèfµ~~thintÞ,e.'I'lJ,< Pistrictfòr.whicb, bUilding peI"l111µ;J1Øve Pèên i~s,t!ÿ4duri.ngíbel&montìis'.immediatelY pieêectingápprovalofthe; TIFPlaD.f'·The C01mijiA-iiditor shill1 increase the original net tax. capi3city of the TIP District by the net tax capacity of each improvement for , ,wþic~a building per :nit was issued. ','.. ,_u _ _ _ ..-- _._'."._.... Tbe~~ been DO building petmitsjB~ûêtfiñ fiitfusfiSmontbs in conjunction ,1'rith. allY Df t~~ ' pl"()pemes wifb,in tl,e TIF Distrié~ ' ' ' .' , . ",:' , , :>"-~. .;:'-.'-. - '.- DevI1lopmentAgreemenfs ~ñ9#~·2$. Nd.#Q;e1:~anlO%. hyacreåge,ofthb prop6rtý t9 be .aoquited within a. projectcontaîningB 'housing districfmaybe pure ImBed b>7 th~ CÎ1~rviitl-nhe Ftocceds0f bonds issued pursrianttø 1v1.S;469.178 to ",luchtax increment:ITom 't1leproperty being .acq-æred is pledged unless prior to acquisition thèCity 'has - ente1':!iß into an ag¡ eÐm.ent for devölopment, which provides recourse for the proptmy should the - deveJoprneutor rede 'elopment nQt be completed. ' ' , City öfSt. Joseph,.I\( lnnesota ---- ,.. , 11 '. tg 14!016 - 05/1 7/02 FRI 12:2S FAX 6123702935 J&HfMJSK - A.rncleI1- TlV: Incremen.t Financing Plt;zn 1urj~ - - The City does not own, orintend to acquire, thepropértyWithinthe econoJlÚc devel()pment TIF district and intend J to enter into an ~O'tEiemeut for development with W. Gohm8J1 Cons1r1JC'ÖCtD. ì - ~onZ.26 AsEessmentAg~ments' , The Authority ma, r. upon enter1ng into a development agreemem" also enter into an, assessment agreement 'with 1he develoF, which establishes a mmîÍnum matket va.!ue<íf the land and improv~ents . for each Yea! durinE the life of the TIF District. The assesS]Ilentagnement shaJlbepreso...nted to the County 01' City .ASsesSOT who sha.H review the plans mid sP=cìñéations f i ibe improvemeIfts to be constructed. revi~w ilie market value previot1sly assigned 10 the land, and so : ong as 1he minimum market value coowned in the assessmentagreement appearS to be ðIl accurate estin ate, shall certify the assessment agreeme!1t as r-...ason.able. The assessmentagre-..ment ' sha3ibe filed for r~t Did in1he offi~ of the CowityRuorder of each cmm1y '?tTIeI'e iheproper!y i~ 1ocated. Any IIlodi.¡;cation·o:; premat.ure 1:ermination of this agI'eCJD.eDt must ñrst be approved by the' City, County and School DJstrict ' , tbt The Authority anti :ipat~ entering into an as5eSSment agreement. k'~~rf- Section ;t.27 Mo, Ufications of tbe Tax Increment FìnancingPlRn ....-. Aí:1y redu..."'tÌODor erlargement .in the geographic area of 1he Project Area. or the T1F District; increase in the amountof boIÌdfd in,debtedness to be incurred; increase in the amount of capiuilized interest; increase - in that portion of t te captured net tax capacity 'to beret:ained by the Authority; increase in the total estimateð.publicco its, orœsignation of a.dàìtioria1 property to be~dby the ,A1ithority shaH be approved oIÛyafter satisfying all th~neCessa.ry requirements for aPproval of the original TIF-Plaìi. This paragraph dœs not ~ pply if:' _ _ - - (1) the . IDly modification is e)imim~tíon oiparce:ls, Ïrom 'the TIF District; and (2) the :urrent net tax capacity of the parcels elimÌIlRíedequals. or exceeds the net tax cap~ city of those par-...els in fueTIF District's original net tax capacity. or 'the Authority agre ~& that the TIF District's original net 1Bx capacity will be reduced by DO more, than the CUlT mt n::t taX capacity of the parcels -eliminated. The Authority roU5 tnotiiy the County Auditor of any modification 1Ì1at Teduces or enJarges tb~ geographic ar-ea of he TIP District The geographic area. of the TIP District may be reduced but not enlarged aftei five y' lars fol1ov.'Ìng the date of certification. '~~f1 Section 2.28 AdD linistration oftbe Tax Increment Financing Plan \1f"'~ ;. . " '1-. - . ".-.¡./ . , . Upon adoption of i he T..IF Pla.c, the Authority shan submlt a copy of f;uch plan 10 1he ÌÝ1Ïnnesota Department of Reve lue. The Authori1)/ ,shalJ aJso request thatihe County Auditor certify the original net tax capacit-ý and net :ax capacity ra.te of the T!F District. To assist 1be County Auditor in ihis prooess, the Authority shall subr lit copies of the TIP Plan, the resolution establishing the TIP District and aàoptíng the TIP Plan. and a 1 ísting of any prior pl1mned improvements, The .Â.uthority shall a.lso ~nd the County Assessor anYaBsessr 'lent agreement estab1i.shing the minimum market value of land and improvements in - the TlF Digtri~ and shallrequestttLat the Cowrty Assessoi review and certi¡)lth.is assessmem agreement as r<>...asonable, - The County shall di rtribute to the: Authority tlw amount of tax increment as it becomes availa.ble. Tne !UD.ount of tax. mCIe¡ rrent in an)' year :repres¡mts the applicable p1"Opßrty taxes genereted by th~ retained City oÎ St. Joseph, N. innesoæ.. 12 71l tru U17 -- ----.,.... ~, A.rtjcle 11- TfD: Incr£ment FinancmK,!lal1.',j'j ,,",'n ,,.' ^"'.'-;: 2~-;\\~~·;,. ,~.f~ .. - ~ u___, ~. _ __~_. '·."H··~· - cap~:riét "tâX.c !l.þäòitj-dfth~Tœ . DistTjcL,The" ~.~of". ~,i~%~el1t',ffiay ch~ge due:. tq development àJ1pcil'ateclbythf1TW Plan, þtP~d~JopIÌ1~mtlàtfoJfofp~rtyvål~es, or ~ges iD PI'QpertycIasswcati on l'atesorformwas. In .arll)1ñ,1istering8fªÍ111pl~elltiI1g'J.¡CI.~;.flm1. th~ following ~~o,n~;fÞg0ld,j~ffi\trø;B~~;~~ª,,~SLij;;;j' ;- ;" '~é)if",d,':':' ' ., ".', ,~;"j" " "'o' ' " (1) pric rtQ July l~ th~ .Aut.horí1¥s~~11 IiotiW,~C0}lJ'iti,~~~rgf~¥ new 4eveloPJ1lent ~',rC:ðM~~»:~~i~ctti~g~tfè~tt~*tO·~ths,tJhe new valUe \ViII (2) "ß~~99µn\y~ltgrre9C?i'Ves,~'xÞque~r'fot£certjfi~Qitó{#'~¥TlF District or ror ",(" !;móf~:ãcàtîoÌl,òf"fìn éxiStîng'I'IV1;)~,tJeförijU¡yl~,the:re9uest sbsÍIbe reopgnized in deft rmûili1g local tax rates for thecîm'œlt Imds1lbsequ~ìltl~vý y~!/ Requ,estsÌ'eceived on ( r after Ju~ 1 shalf be·used to deterí:n.ine locaL tax. .!ate$i# subSëqUel'it years~ . -.- -. (3) ,eac1 ",ye~tlJ.e~~b': ~µdit9t~tU1'¡cettiif:t,Qø~ìiut'òftbebrIiria(µ~ .taXbapacity of " ,the~.iFI)~ct; '111eamount::ceitmêtfshà11 rerIeCt anY çMnges''tbåto'Ccur as a result of .·thé.'iOl]~"W&: "~"ih,: :',' i""·Y'. ',,; ';,¡, ;," " a.) the valUfJ of property that, cÌl~ge$, fromtax-ex~~ettC),~!r8halJ b~,~ded to , fJ1~ori~,Jlet~~fWityiOf~'lì!FiDi~~~''fh~..'~~.S11,Ei11 also apply; . .,.' ::', '.: ~_:;c': ~'-';/':---~':·~--":_';·'::;'~':f:~":_~::~>':"/f·~ ".->_¡~ .'·-::__ö~:~~\:~:':\-}:, ':~~t .': -t:i~~LJ'~~'--- _ '::~.-;: .:~~ .\t;~:,,;; _c:~--::, - _ 'co,;,> - -- ~'-'-" o' _- .', . _ . _ . "by'; tbè origmaî 'Ji'& taX QAPacity ma.y b~ mo.åiiied by any approved enlargement or ,:r~ti:::;;~~rr~,;~l~~i:~,:";;~'.',· '. ,"".. 'ie. , If laWs'" govèmmg the classification of real p¡:operly, C~µS~ chaIl~es to the perpep,~~gt~st!m~r1.,m8J'l,et\vlÛ~~tobeappli~·. fc>.:rpro~t'ty, tax pUrposes. - 1ÌÎèh th¿ resúlting increase or déqrease 1nnet '1å" 'oapácity shan be applied - proporti,onateJy to the original n.et tax capacity andth~}·:efB.ín~,captured net tax c.apacity of the TIP District;,,' .' j"'. .' . . . , . The ç0UIltY, Auditor shall !!-9tìfy th~ Ay'tb.ority Qf fillchangesmfldefu theòrÍ$"Îlla1pët t~ capacity of the - TJPDistrict.." ~,. . ' , .' . ,.~ - - S."ctiunit.z9 }rintJJaa!Xt~p~rfin.~~g,J}~êïbSUl';e Requirements , . . The State Auditor ~ ball enforce the provisiònsof the TT..F Act and shan have full responsibility for :financialandcompli!IL~ ~4ití~~.ç>fth~~utb?r¡nr~<~~ of'ÍaXmcrementiliulncing, On of before August l-ot\eàcn 'veá!, the'AufhoiÌtymust aÍ1nuålly BUbmit to the Statß Auditor. COUnty Auditor and to the governing body oftl" e manÏ.cipfllity'a reportwbich shall: , (1)' proVide iÍí1t,#~9.1d~Ur~·pf1he sourë~sa.nd ¿ses.ofpubIicf¡jhdsmtbe TIP District; (2) pern it cOI!}par~f.m anclrf!COIlpj1iationof the accóUntsBJid'f'måncia1 rePorts; ,-~; - - - . _-_'r-~' -,~:; ','---'- ,. ;---, ~y-< o~·f1 (3) pem it IIllditing of the funds expended on behaJf of the TIP District; and ' O·~'\~ ~~ '-'»'~-~ _c \1'''' (4) be cllJ1SÌstent with generally accepted accountirig pl'inciplés. , , -' - -' , . ~. . ,",,'..' '- - .. The report shall inch .de, among other items. the folloWing information: (1) the c riginal net tax capacity of the ciistriot and any subdistrict under 469.177, subdivision 1; - the i: a1 taX capacity for the reporting period of 1œ district and any subdistrict; (2) - - City of St. Joseph, M hmesota. 13 ' ~I ¡g¡ 018 ~ 05/17/02 FRI 12:31 F/\X 6123702935 J&M(M'JSK J~~~ ~ Article 11 - TtD. : Iiz.crement rinancingPlan. ' - - (3) the captured net tax œpachy of'the d:is1rict; (4) 8?)ifiscal disParitydeductiòn from the captUred net1aK capacity ~der sect1o.n 469.177, sub :iivision 3; , .. , ,(5) the captured netux, capaeiiyretained for-tax mcrement finànèing UDd~r 469.177, sublivision2. pmàgr2ph(a:), c]a~e (1);- (6) any captured net tax capacity distributed among affected taxing-districts under 469.1 77, sub Iivision 2,pamgraph (a), c~e(2); , - (7) the ::YF of district:; (8) the date the municipality approved the tsx ÌDCrementfinancing plan and the date of àpp,'oval, of any modifics:tion OÎ the tax inoreinent fmancing plan, the approval of which reqlÎTes notice, d.is~ussion, a publio hearing, and findings under- subdivision 4, paregraph (a); (9) the iate the authorityfustrequest.ed cortîfication of 'the origiDRlnet tax capacity of the dist ict and the date of re'quest for cerëñcation regarding any parcel added to the district; (10) the late the, county auditor first certified the' original - net taX -capaCity of the dis1rict and the ,late of certification of the ongina.] net tax capacity of any par...e.l added to the district; thenontband year in which the authority has reœiveà . or anticipate.s it will receive "the ~ (11) first increment ñom the district; ~ (12) the « late the district mnst be decertiñed; (13) - for 1::1e repomng period and prior years of the dmrict,ihe actual amount re{:eivecl from, at - 1~, the fo1lowing categories:- - a} tax increments paid by the, captured Det tBX capacity retained for tAX increment financing under section 469.177, -subdivision :4, paragraph (Ii), clause ,(1), but excluding any excess 1àxes; 11) tax increments 1hat are interest or otb~ inves1me.rrtearnlng.s OIl or ftom ta.:x increments; '. ..' c) m..x incremeI\ts th.a! ~ proceeds Îrom 1he sale or lease of propmiy. tangible or . ' intangI"ble, pureìJased by the authority with tax increments; d) taxin?rements that are repayments of loans or other ad"anc~s made by the authority with tax iricrements; , e) bond or loan proceeds; Oilþ..~·:~ Î) special assessments; ~'<> g) gran1s; and b) transfers ftom funds not exclusively associattld with the, dii>'l~ct; - - (14) for t Ie reporting period and for the prior years of the district, the amount budgeted und~ the \ ax increment ñnancing pùm, and the act11a1 amount ex.pended for, at leas"4 the f01l0 ;\ling categories: City of 8t. Joseph, Minnesota 14 r7"Î ~OHl y~zu.u.¡.J.n. . ~ < ' t~e,I1- TIZJ 1Ifcrètnent ruiœiCÎ'((!tl'fl~,'"¥::;,,,;¡~," "Mf, '" ~~ - _.._~......~.. a) '" acquisiticui of 1aJId~d~pi!~~~o1;1;Þ,~H9em;¡1iP,pg,.Qt,pl.!1'èhasef" )""~;"":'~:è':" ,¡, ..';.;j."..'. .'. .... ,.",i, ' ,."" site improvemeI1tsòrpreparaìion oDsfi;;',' . , ,pi}". ·~atioñ·Df'pnÞiiirûfilití;¡;i~~~~~~$~.~~~~ roadB~ ~îòewa1ks. or other . '" siD:u'larpUh1ic improvemo...n~; .," " ,',.. . "... .4), .~miniStrativi~~'·fflfï,~fflRi·~¥~N!ß~~.~ógf:Øtth¢Authority; and 8) public park f'a.ci!ities, fàcìl.i1:ic:=~fot soçi~~~~i~:i;Gr confeterice parposes, or ' oth¿rtSifiil1ätspu'&11QirilpråVømåi1fSfMà'''' ". "', f} , transfer$ tò :fun.éi~l1Pt~~¢!~~lÝ~$pcÏ4tyg,wi1bi~tbø~ '", . :-'--,;_;;-;i~\o;en: '~-/:ÞR-:l --)§/I__;,i~·_~-~·Co-;:~.>A:-;:",.eè'-_~----~._'_~ -_'_",'>o-~_' "', . (IS) for >ropertj.es sold to devß]oR~r4. tb~ total ,cost éf,the p1'~I1Y to ·the A:uthot1tY andßle pric= paidbythè developer¡. "','" 'c' ' ,J ,:';;' ':¡.." ' 'I " . . ;._, <"--·..,t , ". -.. . (16) .themnQ~.of an~,pa~en;tsaµª1À~:{~ue,[{J$.m",kiñêtbêri.efits,'sÜch .as physical, ",' ,';ïlUP~OV~IÍ?-eIitsati¡f't1i~'ûse of bÙÍldih~:'!!pace; ~ml).1"tlPai~, l)r'~T18nceq\~ritb tax m.cr ~1TJents~cI ~Rr9Yid~d¢~):anQß¡~'gov:errin:ifm'tåhnüFòther1hai1 the mwiicipality "'.duii:igthe'~pbrtin.iþb,Í'Îod; "'1, ';';';h ,;; (17) the amount of any paymentS ,f{)taètivitie$l1µd~Rf()Y~~W;..~9.~ep outside of the dis11}gt~,~pmtl fQJ\OriÍn811CedWith 1aX:~.BreÍJ1.~~;;"';';;:;'<" ~- (18) the mount Of payments of prinoipE1l ani:i,intere~#tm~~ !Ilade'during tbe reportÍI1.g - peri,)d on any non-defeasedi'<" ' '.". --- -'.--,,<-,- _._-_'-:-_'.:'>-'_':__~_'-~-,-.- _-.----._~::_-:_---·-_'o·- __ ___~_-_ .__"~}.':~;':~:" ;a)', 'generä1 ôbligaflöÍ1 tåX:inéilm1ént ~f!11c'ÚlgbOnds;,' - b}; ',. ,ptlu~r't~incr~;e~tflÇ~Cing~QntJ.s;:~d _ c)~" ";:Mies~#'~ªY:~"Y9Ú-gQ ~~~;~. '.,.- '-' ""¡'-' -:-"',"'" .;. <-.-- '," (19) thêì ririBiþtù mh()un( b:t:ihe end oÎthe nworting Eerjod~ ofaily nQA;.,defefi!;ed: . .- - -;---~-:.,-';'¡;,:-;- ;.::.:-----~:·_þ-~~~~·-;--;:_-f " '__. - . - - - - ..- ',~.' , ' a) genèral obligation tax incfeIÌlent finanQiligþÛ,!lds; c, '_"_;'. ,_:_ - u. : . .:~_. _ ._~ _.."_. '. ").. b) other 'tax. incTeI11ent futancinltpc.1ncis; B9q .'.", - .. -~'..-"-'- é}. not~~~1'~:""'yD~ft~~~~¡" ", ''', ,< ,,:the t mpunt:ôf Prlncipãl andintðiesf. :pªYIn~t$ iÞâ.t'.~1Ì~~Jf().r 1hecurrent .càlendar year ,on a'!)~µoJ:\-cJ~fèased:' , .", .... u.. ., ,." , . :~~::;::::~~:'~~~;7"äo:~~~c, Ð\l~'f1 .'. ·.c)notes andpIiY-ãS"~61l"~?'C()ntrad$; (2J) if tb~ fiscal disparities ccntribution undèr chapter 276A or 473F for the district Ïs - computed under section 469.177, subdivision 3, paragraph (~). tbe amount of increased prop :rty ÙìXes imposed Dn other properties in the municipality that approved the tax - mere ment financing plan as a result of the fiscal disparities contribution; City of St. Joseph, 11,1 innesota .15 J,-3 @J020 - U5i17fU2, ¥Rl 12:32 FAX 6123702~35 .T£;}[/MJSK ,~~~y - Article II - Tll): Increment J['mandng Plan - . (22): whntl1er 1he:tåX increment ñnaDcing plan or other goveming document pennits increment rev mues to be eKpended; , , , a) , to PRY bonds,. the proceeds.. of which ~ or maybe expen&d OIl activities outsiBe of1h~ district; b) fur ckposÏt into a c;ommon bond fund fromwIDch mone:r mÍiy be exp...-nded on .', activities lobated outside of the district; . or c) ,·to otherwise finaÎ1ce. activities located oUtside. of ilie tax increment :financing district; and (23) any additionaiinfornultioÌ11he sta.teànditor may require. Tile Authorit)' mus also annu:illypubIish in a. newBpsP=f of general circlÙation in i:he City an llDDual statement for each t IX increment financing district showing: (1) the listrictoriginal net tax capacity and any subdis1rict under 469.177, subdivision 1; , ' (2) the let tsiœpaeny for 1he reporthig po...nod of the district and!!DY subdistri~ (3), the ~ptùred net tax capacity of the district; ,. , (4) the nòIrthanô yearm which the 'au1hority has recehred or antícípates·it will receive the, -. first increment froni the district; - (5) the, im.e the district must ~ decertified; (6) the !mount of principal and interest payme;p.ts 1hat aœdue for :the cUITCnt calendar year on..a tly non-defeased obligations; , if tJ ¡e, fucaJ disparities contribution-under chaPwr 276A or 4ì3F Îor the district' is - - \7) CDrn puted under section 469.177. subdivision 3, par-àgraph (a). the amount of increased prof crty taxes imposed on other properties in the mnnicipality that approved the tBx iner· Iment ñnancing plan as a result of the fiscal disparities comribution; (8) the ¡ mou:nts of taX increment received and6Xpended in the reporting period; (9) and my additional information the authori1;y d~ms necessary. The annual stateme It must inform re.aders that additional inÎormarion rega..-d.ing each district may be obtained from th~ a J.tborit;., and must e2..'PIain how the additional informa.tion may be requested. The Authority must pub: ish the annual statement for a year no la.terthan August 15 of the next year. The authority must iden ify the nev.'Bp~ of general circulation in1:hß municipality to which the annual statement has œen c rwi!1be gùbmitted Îor publication and provide a copy of the annual sta:tement to the ccrunty board, COUll ty auditor, the school boa.r~ the state auditor. and thf: governing body of the municipality on or b- ¡fore August 1 of the )reaI' in which the, statement must be published. Th~ reporting and d $Closure requirementE outlined in 'this S"...ction shall begin with the year the àis1rict WRS ceniiied, and ! hall end in the year in WIDen bo1h the district has b~n crecertified and all ta,'{ increments have be en spent or re'turnecl to the county for redistribution. Failure to meet these ' reqniremeIrt&, as éiet lTIDined by the State AüåitolSOffice, may result in. sus~sjon of distribution of ~ ~~~ D~ - ~A . - City of ~'t. J cseph, 1\: irwt:sota 16 "Ï I J If!! U'¡::J. . . Á1'IkJt;~ - :Fa>.' bwre1nentF~ Pian,,~~, - "~4~~;¿~ . ª"''''~Íib''dl€.'''¡>i¡_ ,.'i~'~'::'::L:'~;:: :".:è'L L,~~':'''::: . »0 - Thc<::îtr'œ:o~!'~~véin"01¢~<>ý.m'$t """WJywith~ J,'!8Î>1.... ~~.... "'¥' pr<>Vîò¡"g , buJ¡n..s.:~di';" ~~e; '¡be ~~~~.a Ò! Minh..o¡. S~. SectiOllJ¡ 116J.9.9~~oa16J¡9SS4:~r9Ì'tymusts.doptbusiness subsidy criteria priotto grârtlinga busmess 81ibsidy. The .re~uireznents~gJ~~~¡l\è"~::;.'.> '., '" ' flJ \;.:~~~¡~!ì~'~_~á¡>ubjjébeæ!ng; (~~~~;~~~~;Þ!:}'r""'b-'¡'; '¡\'> ,:",:" ' ':,(6) ·"'a:-c''p~,\.of1I1ë:.ërireria must be subìnitted to the Depa.rtll'J.en~'Of'Trade and'Economic ' :', Pev'l9Rment~' , > ' " "/, ',,<'"'' - ,. :. ....Œ'í,,;';,:;i;.... . ,... . . ., ':.);7< .' '¥'#!o¡µo", tbe Cit#;iì1~~~. sób'idyogeemOJ>! ""$... reciPi~¡'f th. ,ubsid;yc For subsidies ~.than $100~tHi9~'gí:an1tifŒ1lygprnV¡@PUb:Iicnoiice.and~.Þ~arjIÚ~ on the subsidy. The suhsidy ~entUlySt in~hd~~' ... . "t' .'. .' ,... '...',.....,...,; , ,',.. .'.., (1) ." a d~sçrlpfioµof'$íÞ. subsidy, including the a.t.J1()uDtJind typo of subsidy. and type of <, . ,.,~ ~~gtfthe subs~dy is tax increment ~c~gi'" , . _. . ~--. . "" õ (2) 11. S1£1:ement of the .public purpose for the sl!bsidy; . _ f,~?'",,~ specific, and1augibl. g..,¡, for the subsidy; . , " " DR þ..f't <L(4~,', ~d~::ripti~ ofthe;;manciaI O?Ü~on of the recipient if the goíÙSàre not met; ,··;'£%1:.,,~sÜít~~e1i1i'Df WhY1h~.SUbsiqj.:isll~d.ãât., ~:-':.--', '--'.:->' ,-"-~- ---,.-' '," :. \;--- -" ~~l{'-" ~,k6)' '~.cofllnitm.ent td oò!itljìUf?op...'"I'B.Ûons'in t]]c{!ìurisdjction where the Bubsidy is used for at '" ,',' ".~~:~ òfu>f~. bonOfitdatc¡.: ,:::;1 ¡ "f{.·7?),. ;t"fiii~~~e aqd ¥dress~pfthe parent cOÏporation of the recipieJ1t,'if any; and "---.- .- - '". 'C"' ,.,,- _, " "_"_", ;:-'_' <.' "'~_ .~,. .':,:i({¡),{;'¡àIWl:pfälliinancîal i#sistance by all~tors forThe project. n.;'~t.'~~~;'ij,ëÔiñ~ "<¡Ui~~ in the evg[¡; the Subsidy agreement go<js ere not met by the recipi~I1t~~~ipî~nb'¡,arel'e'Wireij.to ~port to the gr2Ìtítor &pe.ç.ffiçinf~rmatio]J,as defined in statute. The ~M,Y-l$Q"·recji.'Û~'aE·~peciñeijiin, .the statLtt~~ to repprtJ¡pecifiC'information, at1D1l!û}Y to the L>cÞP,~~'cifT~-!I~and~nornicDe~elopment.'i"'. .... .". .' ." < "",.c;,.:..' ,'c.. '" """';; ",' " \~ Th·!Ji.~;(!f!J( .1iisip¡, '~!IJ!~ coOgilyW;t¡, iIi>:;..q..¡.....- òf MID...... Stn_ h11i.J.9!13 .. " ~ç.~' lL¿:'Ir fiI\S " ,..... ....'...... . ..,. ., ..., , .. ,..'. , , J', " """,,' " ',0,' V\ :r' ' , '" '''. ,'J'~1',t .,'\"¡f "'-t ,r., > "._' ,. rr~ - v , CityofSf.Jog~ph,M~esotå·' . , ;'<,"'. 17 2--6 05/17102 FRI 12:34,PAX ô123702F35 J&H/MJSK !g¡022 - : :·'·C.'·;'·j~~:-'·~:. ~~-J ....'... ,', . ..:...,"7... :~~,~ :.. ~._-,-:-...._-.~~:. -,,,-, u_,. _~';.H'.... 't·- ..'" ...~.- ...~.. __.~~.,:::~: ,~,' :' ÊjkfHIT I.. ~,e\ielø¡iment'DištriCt " '.'. .._J.d~..~·~'~·~~·:.:· =: k~·..:':".:.. \., .' ..'"..,..,.',..,;. ~:.... ,. ":::,"':- :.... ..'...'-.;- ~;:...~,'.~.~ , . I ' '1 7' , ': ' . ,¡ , .' , ' , -' , , ¡ ,'I ....' ..';;=1.....' 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'. . ._ '10 ,r 1:.... I , ! " i, " ',' -- ¡!: , it ,I 1 l"" ~ . . ," .' L.-. ¡ I': \ . , ,,'- . [, .-e1õ.J' I ~ ; ¡ I ' ., . . , , I\.. r """"\' I t i-I- ¡",,;... I I : .' ' " " I ¡ ( ;,' . V E. 2_ i j:, í " ,_11 t I '.. . .' . ¡ !,; , ' . , .:':' ': ,2 - ~ 1 i t , ~! ! . . t ': " " , , (" 2 " I, 'I ' e i: I"~ , II¡; ',' , ';"':j. ,.., . r~:',1.,>, , " ..". =,.', ,,', ~'II: ,', ;: .. !", '1'.~ " ~ FfL- .... ¡" r ; , \ ,¡';' .¢," , . t:, ,: , . .... I ¡g~, ' , ,', II:!' ~ ¡ r-f- ,--.' I. . I . J . " i ¡ "i ,", ' ~ Í1;~.., ' . .....;.... J I': . 16 &. r--. -. . ¡.o...- " \ ' ¡ ,,' ¥ r-, 'l1 .. ,; I ! i f-,'.. -- "II [1 , ; , . I i \ ¡.., I, __ . I II ' .~ ' - ' , j 1 ;. ~' _ ' '" , ' :: i: ,i! - t ' .]:: . j"Ä I! ; ,\ ' .., '- ïl ;;;.:" - 'i ~ I ' ~ 1 I ,1' f ,t _ ~ ~= :'" , t I: . _ ~. ~ - E ~ ~ .. ,""" ~.. þ.. ! ' !' : " ~ 1 ¡ 1 I I ¡ - i _.~ . I. 3 ~ ,\ f) . =l I ¡ 1 . ¡:¡t' , ' \: ' , !' ' II ~'T'- '. . ~ - 1 [t::: - .' .' .. I ft 1 ., ~ ~ ~ _ ,,; L: ' . ! I· '~,{4 "U;= EBi1=I\\\\\\r.- iL ~ ""7 i IßJ UZ~ :-1 -~. ,"'~ ", .. , .' . , ,. . ...., ", .' . · . . , J'.' .. .' . [' ' ", ' , ' .. ' '" " . ,', .. : .', .. ,,' '. ' ;': : : '.. . ' , f,'~i', . , ~~ , ' };Þ~~:: ; ,,, ' .,' ..'''--. " .. . ~'.. ~\" ... }i'..;:":.{:'. ,. .. . . . , to' 1 '-: I F, ; : wi , " ' , , I . '. " i I '. ',; " 1!' . .' , , ø I . '. I - '1C, ! ___-0-___ l 6. ---- .... ; . - .,; , . " i '" .. .--=i ¡- .. .!. ' ... i, ! ': J~ . . ..... " i . .. 4 ". . .' ... .' ".. .J:;,~i. ~. - . ;ë " -- " . " : 1') v '. . : 'i ~ : .... a;. .. , .. ~.~ ::a.:: ,. . .. l',~:i-'-.c',\ 'I 1 ¡. .. . , .. . . ' .. .. . , . . r5~~~t t .' ~ ".. -4..nÐ ACIt$ 0 " : .. . . "~ - '4- II: ~£9j At:IËs T.83S ~ I... - I,,' ..~ . . :~ . " ...... . I .. ~. , .. .. .. I '" .. " .!:.. i " 3 .: . . ~----~.....:--.::..;::....--- 'N' .. -: u I,-~ ., It , ' '': . .::... :.' ' - , .. .. " . ',!if " , ,¡:;, - .. :~;"î~:é ' , " ,.' '....~~.. : §, ' ' . ..b_Þ-. - ~ ........'~. ". . l " .. ',' ... r ~:}:,; 'ê .;;, ''Þ ,', !. . 13'~ '. Î ¡.:::' . ~' I" ..' co ;i.. .. (,:.., ~ ;0 zœ¡' 411!< '... . It ¡'\," ;::. oþ , , I' ' " 1 - I, ' , ~"QrH " 'ST..IOS5PH. I. - f .... " ," BUSINESS PARI EXHIBIT ......,..;.. . ',." . , .~.. .. .. ' . ST. JOSEPH; MiNNEsoTA' NO.. , .... . ~ ~~¥j ~7 J&M/nJ SK !41 024 - 05/17/02 l-<1U 12: 36 FAX 6123702935 .. ,EXlÛBrr IB-Property Description: q~. k - . - .... ~ The fQlJowihSlparcel identification number{s} (PID#'s) and corresponding legal , ,d~cription ;s); along with acijacent rigli'Ús-of...way, will be ,included in the TlF District ,- -~._. Parcel JD NumberlLeoal Description 84.534'70.229 Lot1~ 'Block 2, Buettner Business Park , B~53470-227 Lot 2,Block 1, Buettner Business Park "'. The City intendti todecreJBse the size of me TlF district and only include a portion of the :t.~ ' ab!lve-liste'd P1D#'s. The exact replatisunknown at this time. tì~~;b6 6P~t/ \î" _ t)~~'f~ oJ _ - - - - - r - - 7-~ . __. . __., __ .......t 1Ii""f\. @025 ',' - .. _; ,,;,;,~~EXlUBIT JI - Sources & USeB;StåteBj-êDit;..'Lt·,',:> ,,:.~!jt ~ _ IO;i ~"._ :-{-';F·-:;:;~:-:;J0:-;- "=j---- - - -, -:-~3<~ .,~:"t~':~-,_' - . . . . "" .. Sòul'éesöf.Funds .~·~~t<';~:7; ;::~-'_-~fi::_r:'(t:o '_. ~~:r _ {'~~~'--',7_:!~ TaXin,êtêinènlreVmUë' , investe 1 funds Real eSÌáte sales " S¡JeCiw áSsessmen S RêrttJ}ease revenue Grants ' ,,",~ ' Other ( describe) Transfers in. 't",") LaP1it!mildini'å6ciíûäition . .~~~,.,qn..,1?r9"eJ:IleìW5...t,f.p~...·,...ß.'P..ltml. lion costi"; .. ' ' ..' ' ID.stallation of pub~iç U1ilitíes :Parki.J1g mciiities __ ,t.:...'..,.,.f ;..L.",f,·.~;r';¡.F,"..;..~.;.~..~,a.·..·.,.·.-..,...r.'.ft,·.;,.·.;mZ:~\tÎl~~:z~;<;,!~>":;'¡ ~v..~,1. , IÐ.~treductiOIiJ¡S)... ·..1p1enis' ~öiidprinci~pa~'~~ . _ :,_::~~ .."._:.' _ _ (-~':_-_-:_ _.> . ~_ _'c'.'<_' '-. of Bohti mterest 'pay;n lentS .l.ê#b principal ~rrtents "tbai1fnote interest ¡Jilyments ., AdIninistrativ~, ex! en~" .. .. pq>~i~~d.Ù1f.elrèsf. ";., ',.,>..,....',' ,', ' pthei;{OSA) " . , ... " Transfers 01lt@rre®nd Loan repâyment) To'Úll Uses ofFunJs 64~;ØOQ Juran a~d Moody .,511i102aí 11:06 ÁM 7- q TlF 4a.xlsSource&Use 0507(02 FRr 12:37' FAX 61Z3702935 J&HfMJSK ¡g¡ 026 'EX:EIJIBIT III - TIF District Assumptions ,:~ - .-..' -- .' -.. - . - ~.o,,:_;.. o-~-_:~-_:~_,--'-,_-.-'":-_-' ___ .-.;__~o _:.liII~f~~d1l~fit1tL·;_ - .' ~~.>~.-..:; - .-.....: -~ .--. .' . Certification Request Hate 0-7/0ll02 Decertiñ.c.atjon Date .. 12/31/12 (9Yearsof~etit) Present V alu~ Date 07/01102 PreSent Value Rate 5.75% T~{)fTIF Dis1rict ' , Economic Development Type of Debt: , Loan (pay-as..you-go) Fiscal DiSparities EJeC1 ion: NA Fiscal Disparities Rate, O\t~f", 0.0000% Loca1 T~ Capacity R.a te: 118.539% 2001102 Adminis1:ration: 10.00% Pooling: 0.00% Market Value Inflator. '100.00% - ~ - Ba.se,Va1uelnforrilatio 1 200212003' 200212003 ' 2002/2003 CLASS R..~TE CLASS RATE 2002"003 - Class PI)# EMV, 1st Tier 200 Tier NTC - CIP 84.53' 70.229 264,400 1. 5 OOA. 2,00% 4,538 Cn> 84.53< 70.227 218,500 1.50% ZÖOO% 3,620 Total c. 482,900 - - 8,158 200312004- 2004/2005 2005/2006 200612007 Basè EMV $482,900 ' $482,900 $482.90G $482,900 Increase in EMV Proje}t 1 2,369,500 2,369,500 ' 2,369;500 2,369,500 Increase in EMV Proje. ~t 2 0 420,000 420,000 420-,000 Increase in EMV Proje;t 3 () 420,000 420,000 420,000 In01ease in m..{V Proje:t 4 0 0 G 0 , Total Estimated Marlœ t Value $2,852,400 53,692,400 l\TTCProject 2... 1st Ti ~T CIP 0 2,25{} 2,250 2,250 NTCProject2 - 2nd TißT CIP 0 5,400 5,400 5.400 NTC Project 3 - 1st Ti( r CIP 0 2,250 2,250 2,250 NTC Project 3 - 2nà TJ er CIP 0 5,400 5,400 5,400 - i<ITC Base - 1st TI~r ill 4,500 4,500 4,50D 4,5 0{) NTC Base - 2nd Tier CIP 3,658 3,65& 3,658 3,658 - I Total. Net Tax Capacit) , $54,79& $70,098 $70,098 $7Q,onl Juran and Moody - 5I1{ 102 at 10:56 AM ~D TlF 4a.x!s . ,A,:¡sumptions I4J 027 - - - - - VLIC,;.!I1; muon. "..-;' . .<-i _:_~ . ,~_ ...~ ",.",.' . :~<~ ~~:-;,;~ ~;"",~:;:~~~~~~ ¡- A.~~ª Aí~~';~~~l .Ending CaþaClo/,; (~;,,::·d}~(lOOO%, Oapa.çny ',......., .,.., O.25~ ;:19~P,P% 0,00%., < ReVenne '.; ::-.;t~L--':-.::·· _U'_"",,,~,_;'_._. 12!':ima ,,~";~··.8158:>'¿·'· 8158 (} (':é,.!è'" D 0 () D 0 " <-~---,. -". "-". - - . 'i. 0.". L . 'c',' -,",,-,,", _ . .. _ _ _, ~ _, . "c' " 12i'31/04·[<¡ 54.798 &,15~ 0 F4~j640 0;:$5,2&7 138 S,5ÌS' 4~;6~ -12131i05 70,091f 8,15Š 0 6t,940 7~.42à 184 7,3,2465;915 12133105 70,098 8.158 Q..ßl,~4Q 'il~A:~I',:;Lj184' . "1.,32if'· 65,91'5 12/311fJ7 70,098 ,.,$t,~ª.::;·.·, ,.,\!t,:Q;;,';,i,:§i.94o' Ii ";f:43.423~'é'di; l!~ ,7;;2~':"F: 65,91$ 1213110& 70,G.98,'.iS1!i:· 'L (¿{'j ·õì,9,40.';i'?3!4~$, .1~",;,.1,324:.' 65,Q1S 12131109 70,098 ' &,158')~' ·11"'·"'·()¡~940'.'~>~:¢2$,,<: .iS4,;j· 7,324 65,915 . ..'c.".- .-.:,',"."..-->."_",:', --; ',f:;;'---'_'_-_'-~---;,~,,_-.-"'_~~~:'- _co,: ._ J 12J3J/1O 70,098 8~I58 tJ61,940 i3J2.3. ' 1M 7,324Ji5~15 '1213]111 70;098 8.1$8 0 6l.940 184 7~2~ 65,91$ 1213 J/12 7o.t}9S~415S; (ii" '6'1.94'0 194> "'1;S24' 65.915 12/3J/13 70.098 70.~8 0 0 0 Q 0 12/31/14 70,{}98 70,,098 0 0 ¡J' Þ 0 - 12131115 ' 70,098 70&... 9J.k<¡,:,{)' " ci' 0 I) 0 . . -- - . 12/31/16 70.09B",,2q~R9~L R.., 0- 0 Ð 0 12/31/17 "76;6'98' 70.098 OcO 0 0 0 12/31/18 ' 70,098 70,098 0 () '0' -0 0 12l3]11.9 7Q,09B - 70.098 0 ~" 0 - 0, () 0 1213U!o 70,fl9& ,!Q~i)9~_..ft 0 0 0 0 1213JI2170:ff9g'-?2~q9¡; " (} 0 Ô {)' 12131112 70,09&" 70:U98 0 0 0 0 0 12131123 ,,70,09& 70;098 0- 0 0 -0 '0 12/31/24 . 70.09& 70.098 ' Õ 0 0 0 ,0 1213112$ ·7Q,{)9& 70,09& ,0· 0 0 0 0 12131fl6'7Ú.U9& 70.09S 0. () 0 0 . 0 12/31/27 j 70.09S 70,098 0 () 0 0 0 12J'31JZg, <70~09g 70,098 " .0 0 0 0 0 12/31129" 70,{)9& 70,0.98 0 0 0 0 0 1213113070..09& 70,098 0 () 0 0 0 12/31/31 J9,Q.9g 7Q,098. {}. (} 0 0 0 642,671 1,610 64,107 0 576,.954 ORÞfl Juran and Moody - 5I1710! at 1Q:53 AM llF 4aYJs _ TaxlncAnn . 3.1 05/17/02 FRl 12:40 FAX 61237029~5 .I&H//IIJSK @¡028 ;~. - EXHIBIT y. PrOject &Ii Tax Impact/Market VaJne Analysis - , . ~,.-- - ~ ".-- . - - ." _~11i1~~'n§~Ii~I~~.~D~¡~~] ~ ".-.,- - .- -'.-! ';-.0 Estimated 1 mpcl '011 Qti¡iirT&XiDg M:.IIl!tJolIS Chycf St:Ium lS.D.fI74Z SL lœepb COunty . 'St. CI oud 0Iher Toll.! T'I!tBJ '!=b¡~NIC ..'...... 2OOJl02 1,3œ,995 6p86,936 42,561,399 NA, t09,] 58,330 . PioJected~edNrc ,61,940 61;940 61,940 61,940 Hypòthdr.:a1 N~NfC 1,371,935 65,348,1:16 42,623,339 NA ,~ioœJ 7_ Ric=' 2OOJfV2 46-.~ S4,S77% 17.056% 0.600% \18.539% ..Hypo~Aq¡.Lo;;1 TexR811 43.92S"'~ S4,825~ 17,031% O,~' l163rs~ .oo-~' 2:077% 0.0S2% 0.025% NA.· 2.154% Hypo1hetjcal'IS1tes: an R=i=! J ITC .21,210 33r~ 10,549 lit'. S(a'~I: 1f~~ Fro.Í~ ll.ctain}d C:µumd Nc!. TJIX CapacIty ÐfÌÀc T!F D'.roi;tVill$ ~C8n}' available to u:b of ~ .la>dngjurisòictian. ab¡¡ve, IÌIC res.:ili ?r'Du1å ~ A lower J=1 taX TN (= H}~ Adju!ted in R&'I:aDovß) wiûl:b. Wi.1Wd pro~ be~ II.WU1!1 ofttXes for cath· t!Xint jurisdi::rlon. In ~ a case, ~ toæJ ¡~ ux ræe 1oW1J1d t!e::rœ!~ by:i;l ;O¡~~(~~ Adj. Lo=ITax P.zœ ø.bove): The JooxIthetiœ118X lhIt1h~ . RetIimå Capturtd:N~ ~ Qpactty <1ftb~ TIF DiBm ~d ~ is ~ ibown 8bovc.., Slatemœ 2.: Sjn~ 1M proj=:ð R.e ~ C8ptJmQ Net TIIA CI!¡ncity orb TIP DisttJ:t is not avaJ~ 'to 1ìæ ~ jurisdictions, men fÌJ!:K i; no ïmr= .00 \!r>.~ ~ or uc:a] 1B1; rIteS. ' - (1) TaxabieoœHax t Iplcity = ttJtal ~ tax œpacity - =P'Jnd TIP, (2) Tbt-, hnpaDt mI tb :s: ~ jl!risdÍC1ÎQI1S is neg1igihb ~ 1hey n:¡m:3emon1y O,SJ% oftœ to1al t!Xm=. - , ,nn IW !'r=nt 0. D!S 1m:: VaJœ@ 'Year In :rrzt=t 6.7~~ - - - - - 1 2004 55,2&7 47.731J . - Z 2005 73,~23 59,379 :; 2006, ''13,423 55,625 Marlm Va1ueAnaIyñs 4- 2007 73,423 52,10!\ 5 le08 73,423 48,813 Pre3\!I11 V!Ù1ie D:tte 07101¡1'j 6 2009 73,423, 45,726 1'r=:ni Vaia e b1I: (GToss 'IIF) 6,7 7 2010 73 ,423 42,835 8 2011 73,423 40,126 ~ in EM'fWItJI TIP Distric: $3,209,500 9 Z012 ']3,423 $7,:58Y Lcs.. P.V or Gms~ Tax In=!<IIt ';29,931 10 20I3 0 0 11 2014 Û 0 SuàtotaJ $'2,779.569 12 201$ 0 0 kss: Incr= in EMV Whhou! Tn' 0 13 2016 0 0 14 2017 0 0 Düï=ce, $:2,779,569 IS 20]8 0 U J6 2019 Q D 17 2020 0 0 18 2(]21 0 0 o~J~"f' 19 lC22 0 0 :;0 2023 D 0 21 2CZ4 0 0 'Z2 2'025 0 0 ;z3 2026 0 0 :24 2027 0 0 - 2$ 2G.:!& 0 0 21} 2029 0 0 ¡? 2œO 0 ú 28 203 0 0 - 642.671 , 429,931 Juran and Mc:xIy· Sfíi'/112 at 10:: 3 A'I: 32- 71;: 4a.x!s - MVA-l~ct - . DEVELOPMENT' AGRBEMB~:,' ". . THE ,~ft;~;~~!~~r;.t~SÊPH;CC':i '; ",; ANI} '~.:.J {c_ ¡tD:J {~:(,:, ~ f~'> ~~- , " , ST. JOE DEVELOP:MENT: LDP; - - - , .-. - - - - - Thìs document drafted by: R~GGSÅ.ND~0:RGÂN Pr~fessioriã1 ASspcigtion ,c;. 21.00 First Nati0nâ.l:Bank Builcling SvPàbl,'M1nnèsotá 551 01 , -¡ j .¡_;::~t - 1415316v2 3~ - TABLE OF CONTEl\'TS . Pacre ,~ ARTICLE 1. DEFOOTIONS~..... .................... ........ ............................ .,.................................. 2 Section 1.1 ' Definitions.....................:..:..;; .....................................................:.......... 2, ARTICLE n. REPRESENTATIONS AND WARRANTJES................................................ 4 Section 2.1 Representations and Warranties of the City...................................:..... 4 Section 2.2 Representations and Warranties of the Developer ............................... 4 ARTICLE m. UNDERTAKINGS BY DEVELOPER AND CITY ....................................... 6 Section 3.1 DevelopmentProperty ;.......:................. ..... ........... ................... ............ 6 Section 3.2 Reimbursement: Tax Increment Revenue Note................................... 6 Section 3.3 Business Subsidies Act ,....... ................. ...,....... ..;....... ............... ............ 7 Section 3.4 No Representation Regarding Tax Increment...................................... 7 ARTICLE IV. E\TENTS OF DEF AUL T ................. .:...................... ............... ............... ..........9 Section 4.1 Events of Default Defined... ............ ......... ...;.......... ...... ........... ............ 9 Section 4.2 Remedies on Default.. ........ ............;............... ............. .........:... ............ 9 Section 4,.3 ' No Remedy Exclusive.......... .............. ..................... ......... .................. 10 - Section 4.4 No Implied W aiver ...~ ............. ..................... ................. ........... .......... 10 Section 4.5 Agreement to Pay Attorney's Fees and Expenses.............................. 10 - Section 4.6 , Indem.Irification of City ...... ......,.....:........... ......... ........... ............. ........ 10 ARTICLE V. DEVELOPER'S OPTION TO TERMJNATE AGREEMENT...................... 12 - Section 5.1 The Developer'soption to Terminate...:..........;............ ........... .......... 12 - Section 5.2 Action to Terminate ............... ............... .................. ................. .......... 12 Section 5.3 Effect of Ternlin.ation. ........ .......................... ............._...... ................. 12 ARTICLE VI. ADDITIONAL PROVISIONS ...... ........................ .................... ............. ........ 13 Section 6.1 . Restrictions on Use .................................................................. .......... 13 Section 6.2 Confli cts of Interest....... ..... .. ................... ... .... .. .. .. .'...... .. .. .. ....... .. .. .. .... 13 Section 6.3 Titles of AÌticlesand Sections ................................................. .......... 13 Section 6.4 Notices and Demands ... ......... ........................................... ................. 13 Section 6.5 Counterparts.......... ........................... ................ ........................ .......... 14 Section 6.6 Law Governing........................................................................ .......... 14 Section 6.7 Exprration.................................... ....................... ...................... .......... 14 Section 6.8 Provisions Surviving Rescission or Eh."þiration ................................. 14 Section 6.9 Assignability of Agreement and Note.....................;................ .......... 14 EXHIBIT A Description of Development Property ......... ............................... ................. A-I EXHIBITB FOIDl of Tax Increment Note ............................................................... ........ B-1 14l53l6v2 -1.... zL-/ . . - - DEVELOPMENT AGREEMENT'. ., mIS AGREEMEN'T,ma.de â$ ofÍÁë.t7~,'Q.a~1(jtIfun~i 20Ô2, by atld betweè~ the 'City of St Jös<wh,:ryrinnesota (the "City"),amunici,pØfcp¡P0iaíio~.orgånizedand existing undet"the, ~~§~~j,; 'h"" T~.""" ",.;~ '; ~:,!t\:.;;;/;,:.., ; WHEREAS, .PUISlJant,toMiDnesota8tatufes,SectÌQIl. 469.12~ tbr01igh;469j:l4:'~~-CitÝ" ',;,' :::~là~~t~~I~~ltili~~t~~;~:~~~~=~:&;,).'~d'~:,~%~~~5:;~;~:å,.,." wBEREAS, pursuant to the provisioIl$ HtM~,1Í".~sp-æ,,~~,g.teJ;~';Sec1ii~#4p~;lU14;thI:~P:gh 469.179, as amended (hereinafter, the "Tax Increment Act'1t the, City has created within: th~ Development :District, Tax Increment FiD,ancing Di~ºtNØ'¡·.1~!.€1he.'J'Faxdil16í'ertlel1td'istrípt1'), and has adopted a tax increment financing plan therefor(the IITaxIncrement Pl~")\.Vbich .' " proVides for thè use Qt,~,jncreplentfinancingin;cÓIiDectiGª.withèmaJn'deVèl()píiientWifÌiî1i the Development Distrìct; and " ' ' . >,,~:o,_\~,y~-___\__,·+ _ _ _ ._ . wHEREAS, in order to aêhievetheobjectivesof~e,I)ev~l0l'p1e1ftPr?gréltD.~~: .... ...... . .... - part1.cularly tøm~~.>tñ¢"lâD.dmth~'DeveløÞÌnent-r¡)i'Strictàva1Ìablè for' aèvelopmèl1t"?yp~vate - enterprise in conformance with the Development PrGgràm, the City has determIDedtoassistthe ' Develpper with the financing of certain gosts of a Proje~t (as hereinaft~r, defined) to be' ..... '':' _ _.'- ¡~ _ '_ ----. .. __ _ ': - .' _ __ _._ __ _ _ __-.".. :' ..- __. - \~ _ _C'~:_ 0 ,-.. " _': _ _ - .-,_~;- ". ", :._ '_, _ '",: ,'-" :'- _ _ "-,'--:.<'-',-- -', ,~:< - .--_. - :-:,-::,. '_':"-" ,.:-, _ _ - '-,:- --','_"- ,"." :: ,__ - - - - : cons1rUctèd"within'thè TmeJncfßIJiènt Dismct as Ìilorepârticillarly set fortlìill this A.greeìD.èJ1t; , ." - and- - - - - . '-.... . .. >-'- -' : .' WBEREAS,fue,'City:bèlle'VêS" tñ.aft1i¿·dêv61ôþmèl'ltánáêoíßirU8tiö:r1 df"thè:Projê6t;~d c fÌ11fil1m~]1t of this Ag,reement are vital8l)~a.r~ÌI1th~~?est}nt~rr~ of"1¡11~.(Jity,.tbe~~a.1~s~ety. morals;1µldwe~e1()f,i-es,ideD.tsaftñé·Çit)r(3.fl~·~~P9~rô~nÓe~ÌÞ:.,tñ~§~~1ic l'llrP0sR ~tì.....",· piovisioM~oftb.~ -app1i6ahlè<state 8Ild'1~c~''lawsan4~fe~UÎIe1pe~t~:~der'\Vhî6~ tl1~:E1¿ojêct~as' been uncie:rtåkciìandis:bèirig'assisted.;and é;VL' ',(,'"<-" < ", ,: ....' '. ' ", - ' WHERE~, the requireJ±ients of the BusÎJ1eE;~.§uþ~idY.Law, 1víin11.es9taSt~ffit~s,~~ction 116:,",993 through'116jL99S;~' a¡3plytotbià A.greê1Í1,-entyánd'>" , ,'..;. " ' ", ", '.,. _:;;':_:;'_' ~,_ ,:<:_'""--> . "~O"?i-._·· _~ ~ WHERiB,AS~·:theCity'hadadopted êritenáfø:fäwàrâirig'õusÌD.ess' stlbSid.iêsfuiii coÏb.plY··' with the Business Subsidy Law, -after a public hearing for wbiçhnoticewas þy:blisþeci;and "WHEREAS, the Councìl has approved this Agreement as a subsìdy agreéilléritrindet the Business Subsidy Law. NOW, THEREFORE, in consideration of the premises .andthemutual ohligatioIls of the parties hereto"eacl1 of them does hèrebycovenant and agree'withthe other as follows: . - - . ." 1415316v2 35 - - .-.. - , ARTICLE I. DEFINITIONS . .-" S e9tion 1.1. DefinitionS, An capitalized têrms used and, not otherwise defined herein, shall have tlie following meanings unless a different meaning clearly appears from the context: A~eement means this Agreement, as the same may be from time to tinie modified, amended or supplementedj . Business Day meanS any' dayexcepfR SatÛIday, Sunday'oralegal holida)! or' a day òn which banking institutions in the City are authoriZed by lawor execunv.e ordertö close;' Citvmearisthe City ofSt Joseph, Minnesota;' Countvmeans Stearns County, Minnesota;' DeveloDermeans StJoe Development LLC, its successors and assigns; DeveloDment District means the real property described in the Development Program; DeveloDmentProQI'ám,meanS the development program approved in Connection with the - Development District;. - - DeveloDment ProDertv means the real property legally descnòed in Exbibit A attached to ' this Agreement;- - - - - Event of Defãu1t means any of the events described ill Section 4.1 hereof; Note PavmentDate means Augw,t 1, 2004, and each February 1 and August 1 of each year thereafter to and including February 1,2013; provided, that if any such Note Payment Date should not be a Bùsiness Day, the Note Payment Date shall be the next succeeding Business Day; Prime Rate meanS the rate ofinteiest from time to time publicly announced by U.S. Bank. National Association in S1. Paul, Mlnnesota, as itsllprime rate" or "reference rate" or any successor rate, which rate shall change as and when that rate or successor rate changes; . , , Pro;ect means the approximately 67,000 square foot manufacturing facility located on the Development Property; State means the State of Minnesota; Tax Increment Act means Minnesota Statutes, Sections 469.174 through 469.179, as amended; - Tax Increment District means Tax Increment Financing Dis1rict No. 1-4, located 'within the Development District, which was qua1i.fi.ed as an economic development district under the Tax Increment Act; 1415316v2 '2.7 - . , Tax: Increment FmancinèPlan :n:ieaI1§tl:}.~"~iAÇ!"ement financing plan approved for the Tax Increment District by the City dou:a.cil;,i"¡'X>' ,t;\,l,\ '. 0" '., . 0. 'Tax.mCIenierÌt Ndterñeáriš~~.T~'InòfbmèÍ1ìœ{:eYêifié~ðt~:rSt.i:fðe .Development LLC Projectj!pbee2(:~]lt~dþy: th~(Jity<~d.<!~!ivt::red t()tp.~p~elop~1"µrsµan.it9 ~ql~}I,IÞ.~l"eof, , a ,ëôþyof,wmcñi¡s;å.tta.g1îeil'nèfetò,â.siEmblt~Ð;;;\V;";1:"{f,<,)#;Ù'.\J~:iŒ\~:;¡L:)}i;;!Xct{;¡, .,'.. ; ",··.·ff;,.;'·./i...·. . . - .{-.-:·o ':-_-';'~~:- , . Ta:xI1lcrelJ1:n:ts;I11em:s~e.~., ~cr~J]l~t$~eri,,::~fr0m íbeBe"eloPII1eJ;!t PI9P,erty)Y11Ïch ~:~~~~Š:~~~~16~:;~~¡a~}f~èCitY ,In·ac:~~~~~~:J~~J~~,;~:re~si~~.·of~i~0~~~~''~;'i¿''''''· ·=i=~~..!~~~.~1N~w""" by thirdp~es .\Vbicl1, b)'i~1JJJ.~ti~I?~rÇ>theF. s;11"Iila.t'~p.d!cifJ1ac1;j.~J?,B~.b)'~~e~~r9is~ of , reasoJiable,mscrêtiórr,;di1:ectlyi~Sù1tš·~'¡~l~ysé()l'1lC~'?f'~Y.~ec1#rEÌh'-stat~or~o9~.l· .,' governmental unit (other than the Citý)'wbièñ'ditect1yresIDt mdelaýs." ...',' - ':'~1":1~j._-; -- :"'_i - - '- .O~5' 14153l6v2 3-1 . ARTICLEJI. REPRESENTATIONS ANDwA.RR.A.NTIEs, . , .' - . Represen~oD.s and Wammti~s of the City. The'Òty makes the fol1~wIDg, Seêtion2.1' representations and warranties: ,--- ~- - "(I)" 'Th.~Cit.Y is a~1lIliciþal coIporation and hasthepower to enter into this Agreement and catty o1;1tits obligations hereunder. (2) , ,The Tax}ncrement District is an Heconomic-development~s:tricrl within the meaningofMJ.nD:esota. Statutes, Section 469.174, Sub divi SiOD 12, and was creàted, adopted and approvedinaccordariêe,~th tþe tenns ofthe Tax Increment Act, " , (3)- The development CoDtemplátea'by tbis Agreemënt isin conformance With the : development objectives set forthiD. the J{e:ve1opmenfProgram.' (4) To finance certain costs within the Tax Increment I>istrict, the City proposes, subj ectto the further provisions of this Agreement, to apply Tax Increments to reimburse the Developer for the costs of the Development ,Property as further provided in this Agreement. Section 2.2 Representations and Warranties of the Develouer. The Developer makes - the following representations and warranties: - (1) The Developer is a limited liability company and.has power to enter into this Agreement and tö perform its obligations hereunder and is not in violation of the laws .?fthe State. - - - - (2) The Developer shall cause the Project to be installed in accordmlce \viththe terms of this Agreement, the Development Program, and all local, state and federal laws and ' regulations (including, but not limited to, environmental,zonmg, energy conservation, building code and public health laws and regulations). (3) The construction of the Project would not be undertaken by the Developer, and in the opinion of the Developer would not be economically feasìble within the reasonably foreseeable future, without the assistance and benefit to the Developer provided for in this Agreement. (4) Neither the execution and delivery oftbis Agreement, the consummation of the 'transactions contemplated hereby, nor the fulfillment of or compliance váth the terms and conditions of this Agreement is prevente~ limited by or conflicts \vith or results in a breach of, the terins, conditions or provision of any con1ractual restriction, evidence of indebtedness, agreement. or instrument of whatever nature to which the Developer is now a party or by which it is bound, or constitutes a default under any of the foregoing. (5) The Developer váll cooperate with the City with respect to any litigation commenced with respect to the Project. 1415316v2 7~ - - - ~ , (6) The Developer Win cooperat~witb,theCity in resolution of any traffic, pâr]ci,ng, 1rash rerp.Qyal or public safety problems. w~9.1}JTlaY;~$è.in coim,ection Withthè constrUction of the Project. . ~ .- - - '. _. - :-¡:."J1,:-r:"·:;_: ~{\_-~~'~f':,h: '. :!':~:~~:.\~¡-·:::·:i'1\)~;_- ::~r;;š_~~\-~-~iIf~/T':-~-;:-<-:Pf :'c~:.::t~<l~~-:':{:-r ~~:_~';t;;._ \-..~~~_~~,r~:_ "~:</~':'.:<;: l3'---· _ _ _ _ _. . .' (7).... 'The C{)l1Strtfcitié)Il-oft1ì~?rôJèêfshàl]pom",encf: 011 or beforeSept~bf:r 31, 2QÖ2 and, ~~¥ t?;~¥~j}~~~ª~~~~~,;,tþ,~,~<)jpglåy,i~(~e~~~~~~Æ~q~l~f~ª>MatCh 3;l~,~ØOp. Ü.2t1t~t~~Ü~_i:-f~ -~ ~- - - ,.-,- . ",- .,- - .~-~- . - , : ,-. . = - - - ." ,-;~. ;-. ~_1 -.=:_ -_~ c" d<, '--11~·:"· '''; .. . ,.. .. .. - - 141S316v2 39 - - - - 'ARTICLE ITL" UNDERTAKlNGS BY DEVELOPER AND CITY " " , Section 3.1.' DèveloPmentmuertv. The cÓst of-the Devðlòpment Propêrty sIianbe paid by'the Developer. The'City shall reimburse the DevelOper for the Jesser of$ , or the costs of the Development Property actually paid by the Developer (the "Reimbursement , Amount") as further provided in Section 3.2 hereof: ' Section 3.2 Reimbursement: Tax Increment Revenue Note. The City shall reimburse for the costs identified in' Section 3.1 through the issuance of the City's Tax Increment Revenue Note in substantially the form attacbed to this Agreement as Exhibit B, subj ect to the following conditions: ,(1) The Note shall be dated., issued and delivered when the Developer shall have demonstrated in writing to the reasonable satisfaction of the City that the Developer has incurred and paid the cost of the Development Property, as descnòedin and limited. by Section 3.1 and shall have submitted paid invoices in an amount not less than the Reimbursement Amount (2) The unpaid principal amount ofi:he Note shall bear interest from the date of issuance of the Note, at _% per annum. Interest shall be computed on the basis of a 360 day - year consisting of twelve (12) 30-day months. - (3) The principal amount of the Note ~d the interest thereon shall be payable solely from 90% of the Tax Increments. " - - ,. (4) On each Note Payment Date and'subject to the provisions of the Note, the City shall pay, against the principal and interest outstanding on the Note, 90% of the Tax Increments received by the City during the preceding 6 months. All sucb payments shall be applied first to, accrùed interest and then to reduce the principal of the Note. (5) The Note shall be a special and limited obligation of the City and not a general obligation of the City, and only Tax Increments shall be used to pay the principal and interest on the Note. If, on any Note Payment Date, the Tax Increments for the payment of the accrued and unpaid interest on the Note are insufficient for such purposes, the difference shall be carried forward, 'Witho-µ.t interest accruing thereon, and shall be paid if and to the extent that on a future Note Payment Date there are Tax Increments in excess of the amounts needed to pay the accrued ,interest then due on the Note. (6) The City's obligation to make payments on the Note on any Note Payment Date or any date thereafter shall be conditioned upon the requirement that (A) there shall not at that time be an Event of Default that has occurred and is continuing under this Agreement and (B) this Agreement shall not have been rescinded pursuant to Section 4.2(b). (7) The Note shall be governed by and payable pursuant to the additional terms thereof, as set forth in Exhibit B. In the event of any conflict between the tenns of the Note and the terms of this Section 3.2, the terms of the Note shall govern.. The issuance of the Note pursuant and subj ect to the terms of this Agreemen~ and the taking by the City of such additional 1 ~l "l/,v' fi - . actioDS as bond counsel fo~ the Note may ~eqlÛre Ì11 connectióD, therewiili:. are hereby authorized ~à~~~~j~~2~~J~~\~~ti!""'":j:~;\';\'M.li~),~,!,,it,:., ~\:$e~~~~3:.$,;,e(;",~~;ss-f0'~i0ês'AC~ The Tax mcremenfDis1rict is 'ar1;;¡66òjíbrii1ð"d~v~î6pmðntÎ',distriðråriciili~pub1ibp1ll1'0~~oftht " . ,BusÍ11ess Subsidy Ì$ to develop new jobs within the City aI1clencournge the install~tionQfthe . I ~ _ _ -. _ _ _ _ _ Site Improvements and tò developJTlanufaêturing facilities, in the City. , The Devëloper agrees that it wi1ì meet the following goals (the "Goals"), It will Create at le~stseven (7) fu11.,time , equivalent job Ì11 connectioD.Witb. the 'development of the DevelopmeI1t Property at ~ ttirect ' hourly wage of at least $ 10. 00 p~r hour withi1itwo years from the UBeneñt Daten, which is the " date'the Project is completed. , (2) If the Goals ate not met; the Developer agrees to rq3ay all or apart of the Busines!, Subsidy to the City, plus interest', ("Interest") sët at thë implicit price deflator defined in MInnesota Statute'S, Section 275.70, Su.bdivisio112~ àCétuing froma:ìid after thè Benefit Date, - , cOIIlpoünded semiannually. If the Goals are met in part, the Developër will repay a portion of " ~ the BusinesS' Subsidy (plus Interest) determined by multiplying the Busmess Subsidy by a , fractio~ t1:le numerator of which is the number ofjabs i:à. the Gaals which were not created at the wage level set forth above and the denominator of which is seven (7) (i.e-. number of jobs set forth in tb,e G0als). - - - (3) The Developer agrees to (i) report its progress on achieving the Goals to the City until the Goals are met, .oT: the Business Subsidy is repaid, whichever occurs earlier, (ü) include in the report the information reqlÛred in. Subdivision 7 .of the Johs Act an formS devel.oped by the Minnesota Department of Trade and Economic DevelopDieÌ1t, and (ill) send completed reports to' the City. The Developer a.grees to file tbese reports no later thjD1 March 1 of each year ' , commencing March 1, 2003, and within 30 days after the deadline for meeting the Goals. The City agrees that if it does not receive the reports, it will mail the Developer a warning withID one week of the required filing date. If within. 14 days of the post marked date of the warning the reports are not made, the Developer agrees to pay to the City a penalty of $100 f.or each subsequent day until the report is filed up to a maximum of $1 ,000. (4) The Devel.oper agrees to continue operations within the City for at least five (5) years after the Benefit Date. (5) There are na .other state .or local government agencies providing financial ,assistance for the Project ather than the City. Section 3.4 N.o Representation Regarding Tax Increment. The City's financial commitment under this Agreement with regard to reimbursement for the Development Property 1415316v2 7 yl · .is arevenue obligation only and will be paid by the City only out of Tax Increments. Th~City , makes no representations ,or warranties that the Tax Increments ",rill be sufficient to reimburse- the Developer for the cost of the Development Property; , The Developer acknowledges that Tax Increment is subj ect to calculations by the County and changes in State law and that some or all of the cost of1:b.eDevelöpment Property maynotbe Tep~dpriorio Fêbruarýl,20i3. The , Developèr aêknówledgesthat 1;he 2001 State legislature ënacted significant cJ?-a,nges to the Tax Increment Act and to the propeI1;ytax Btruc~e in the State, whicþ changeS may nave an adverse impa.<?ton the 8D,1ount bfTax mcrements. The Develöperalso acknowledges that the estimates of rax Inêrements wh!ch may havebéerimade by ~e'City or'itS agents; officers orem.ploYees. are estimates only and are not intended for the Develop,er'.sreliance. ,. ,. , - " - ~,- - --..'. ; - - - - - - 1415316v2 tJ7- - . ARTICLE IV~ .. ;~;'}:~iIª·;ª~>1i~¡¡~1?;; '. '., >, _"i _'~'::/' ~f;_;:~.ô:~:' j/-:~:_:_- /H: :~--':- ;):;~_: ::;_:~:~:_'1'+.-~:,~--~\-::_~~:, :}.-:--~y~!~;:~} -~~_-~'_~-\i:'-\,y~~~:~ _ ,--<:;Ú - ~~:,_'; .~~:'Æ-T}i~~. [}:1~-:-.:b;{}L:-._ }j¡f.1:,.:~::J~;JJ~~ _ _'_\r~pfJ- -,x~:_"_- :.,':/;_ Section 4.1". cÊvéD.tB'ÔfDefi1I1t.Dêfiñëa;,Tí1e folloWhig snall b~ "Events ofPefault" , under this Agreement andth,~,~œ1i:~¥¥~tl~~~5~~fftJ1ta§hf!~'t;mi8I!,wª,~~,,~tit is useg in this Agreementanyoneormoreof:the~o1¡~~~events:,., ,:'", '".',,~,',,::h . '. , ~i~~*~~~\'~\1!~~=~~~,~~7::fu<m~,~~~es .. -- ". -L;:' ::~':'<-1;1i~-~(:>f-~ , (b)' Failtu'e by th~ P6ve1oper to cªu$e tb,e installation pfthe Projectto he ',t {~;?mgl~~g ~~f;~~;~;~æl~~;~~=~R~~~~¡'~~~:li~:\~~~~1~~~~'~~~~:?t.,:,~",;""" , ':(0)' ,; , FåÜtire oftl1e'Developei to õbsèJiVc{)rpêr1:o~' àny other>coY~naD,t.. cóndi6on; "qhìi,g~on òr .agr~ent on its par~ÚQ be obs~rVe.(fòr·pertonD.ed under this;:, ,:;~~e.~e~~~,~,~~!',.'~i"v, ,.", ""FO'" " ,.,... .' , .. , , ". ", """"1f""'"'' . ".".,;., ,:", :".""" ':<'(àj: ·the'í).¢vê1o]Jef's1i~ ~-T"?," ,-:' Y"--AJ\"::-: ;~- .t!~:""'t{.; <~-~ '-,", " '., ,fA.) .,.., ','. fl1e:3IlY :pé~ti~n ÌI1''bal1ryptcYPl",fQ~.~y:reptg::tni7.a'þj9P,J''':\'' - ò,:~:=~i%~~~~~~~§~~£~~~~~~""'" - ~, 1,",_ ,¡1,.'~ì,: "make ~ti~mFtfql":~~~~I,1Ç.¥tt:ottÈ~:~I"r,¥!9rs; or, ¡'" ' ' . . - . .- . - ~t4':1,'.. .,.3èlT1-l1~.:~wniit1g ifS·ñ1ãòî1ify toPå.YIts'debt§&,~éHûì)f:~t1î~Y' -< ~....- becomofdue;,or<:'::;" ..", ' -.-': '-~~, ,_--.,__- _-I~~~ 'c'-_" . , . , . ' . __ . _". o' ., ".~>(JD)':",beadjudiêateâ'abari1mipt.or iriscilVètJ.tÍ'oti{åþèµ~òÍ{Òråhs~êt...,., ....,' proposing the adjudication of the Developer, as a ba.rïkfu.pt or 'its reorgam..zation " underaIiy present or future federal b~tc:yacto~,~y~i!11ilar fe4epµ.?~st~te law shall be filed in any court and such:~etitioD/or~ér:slÎa11 not be discharged ordenìe~ \VÎt"i~ siJây{60) days after t]leñ.li~g;.fb:ere,\>f; o~a,.receiver,1ruStee OJ; liquidator ~f,'i1ie1Jevel~~er;'öi'~r~e PI"~j~c~,~F}á,rttl1~fe:9b·.shal1þ~apPoipte4in., anY1'roo~~g%5io~~~á~ài~~fth~;I)e'Vþld>per(aÍl~'~h~ nôtqe 'wschargecl Wthin sixty"¡($@,:4åys ãftét'~uèIrappointmêrit, ôt if thëDeveì~per~ shan, ÇOI;isemt.to'OI".....,' , acqûiesce,msiíö]fåpþóf.ritinenÍ;'';'( .~-- - ,~- -.' ., ' ..'.0 .,.. _0;" .. , ' , . Section4.2' "o,Riemedies~rl'Defatilt;uW1ìe~ever"~)rBveIi{ÓÎ])efailltT~ferredtom. ...','. ' Section 4.1 occUrsandiscontÌnuing;·tb:è-{;ity;'ás speéifiða below~1.11aY'tak~ ariyoIle:,ormore. of the following actions after the giVing of thirty (30) days' wri.tteJJ.notìc~tothe Developer citing with specificity theitemor items of defaultandnotifying~e j)evtloper tbatitþas thirty (30) days Within which toctire ·saidEveiJ.t ofDefaulL 1£ the Event ofDefaùlthas ÌlotDeeIi :curecl withIDsaidtb.irty(JO)days: " '. ,. . ",-.i;:.. .' ~--' 1415316v2 9 'L{3 ~ -- . (a). The City may suspend its performance under this Agreement until it receives assurances from the Developer, dèemed adequate by the City, thatthe Developer will cure its :default and continue its performance under this Agreement. __ ' .. ~ _.0"_ _ -'~ (b) The,ç:ity may' cancel aIÌd rescind the AgreeI]1ent. ' , . , . ,(c) The City may take ariyaction, iDcluding legal or anministrative actlon, in >lawor,equity,whichmayappearnecessary or desirable to ,errl"orce perforìnance and obsetvaricè of any obligatio~ agreement, or covenant of the Pevelopèr'urider this Agreement. ' Section 43 No Remedy Exclusive. ',Norem~yherefucOnferredupon or reserved to the City is intended tö be exclusive öf any other available :remedy or remedies, but each and every such remedysha11 be cumulative andshallbe inaddition toevery other remedy given under this Agreement or now 'Or hereafter existing a! law or in equity or by statute. }Jo delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. Section4A',·· .~o1mt)lied Waiver. In the event any ¡:¡,greement contained iD..this Agreement should be breached.þ}'any party and thereafter waivedby any other party, such - 'waivershallbe'limited to thepaIticular breach so waived and shall notbe deemed to waive any ~ . . -" .- other concurrent, previous or subsequent breach hereunder. ~ - , _ Section 4.5. A2reemenfto·Pav Attorney's Fees and EÀ'Pens~s. VVhenever any Event of. Default occurs, and the City shall employ attorneys...or incur other expenses for the collection of - payments ,due or to become due or for theemoI:cement or performance or observance of any obligation or agreement on the part of the Developer herein contained, the Developer agrees that it shall, on demand therefor, pay to the City the reasonable fees of such attorneys and such other expenses 'so incurred by the City. Section 4.6 Indemnification ofCitv. (1) The Dèvelopèr releases from and covenants and agrees -that the City, its governing body members, officers, agents, including the independent comractors, consultants and,legal courisel, servants and employees thereof thereinafter, for purposes of this Section, collectively the "IndeITlllÍfied Parties1l) shall not be liable for and agrees to indemnify and hold harmless the Indemnified Parties against any loss or damage to property or any injury to or death of any person occurring at or about or resulting ITom,any defect in the Project,pr.oVided that the foregoing indemnification shall not be effective for any actions of the Indemnified Parties that are not contemplated by thís Agreement. (2) Except for any willful misrepresentation or any willful or wanton misconduct of the Indemnified Parties, the Developer agrees to protect and defend the Indemnified Parties, now and forever, and further agrees to hold the aforesaid harmless from any claim, demand, suit, action or other proceeding whatsoever by any person or entity whatsoever arising or purportedly arising ITom the actions or inactions of the Developer (or if other persons acting on its behalf or under its direction or control) under this Agreement, or the transactions contemplated hereby or 1415316v2 10 . . , theacquisitio~constmction, installation, o~rsþil'~1ffi~ operatÏonôfthe P¡oJéctH)rovid~ that this inde1'1111ification shàJl not applytG) the wälTaiiû~s'Tri~qe or obligations l1Ild~~ by the City , in this . AgréeJ11entô~tÇ).aI1), ~~ops'Ul}~e~eIlõ¥'tþ.~9itM~lti,P1J;~~~Ql.o~]].t~l'la.ted.bytbi~ · ~eepient but sha1l:Jn!ånÿêýéht'a#~Withòiitieg~d~ã.T1YfáU1fÖl'If1h~pätt9f·tBe City, apply tò òbllgations óftheCityand not ófany· gø¥êm1-ñgoodŸ:iÌiêJ:l1.'ber"ômê~1\ agên.í,servarit·Ò!' ""C"" employe~ ófthe City, as 'the casé.Tfiayþ~.' '. _J.;- ". ,:-t',-o; -- -" .-.,,-. . -...,: ,"" - - '. .. "-'-' ,. .. 1415316v2 11 Lj,ç - . ARTICLE V. , , " ' DEVELOPER'S' OPTION .TOTERMJNATEAGREEMENT " SeCtion 5.1 The Dèveloper's ODtim1 to TenÌ1inate: This A,greement may be terminated by Developér, if (i)' the Developer is in compliance \Vith.al1 'nlaierial, tern,ls of this Agreement and . - ~ - -. - - - - - "0 . . I DO Event ofDeÎaulthasÖccùrred; and (ü)the C'rty fails 10 comply with any material term of this, Agreement, and, after written Doticeby theDeveloperofsuch failure, the City has failed to cure such noncompliance within ninety (90) days of receipt öfsuch notice, or~ if such noncompliance cannot reasonably be cured by the City within ninety .(90) days, of receipt -of such Dotice, the City has Dotprovidèd assuriinces, ~easonàhiysatisfacto1y to the Developer; that such ' noncompliance will be cured as soon as reasonably possible. ' Section 5.2 Action to Terminate. Termination of this Agreement pursuant to Section . ' 5.1 must be accomplished by 'Written notification by the Developer to the City witlrin sb.,1y (60) days after the date when such option to terminate may first be exercised. A failure by the Developer to teri:ninate this Agreement within such period constitutes a waiver by the Developer of her rights to terminate this Agreement due to such occurrence or event. , Section 5.3 Effect of Termination. If this Agreement is terminated pursuant to this Article V, this Agreement shall be from such date forward null and void and of DO further effect; - provideci, however, the termination of this Agreement shall not affect the rights of either party to - institute any action., claim or demand for damages suffered as a result of breach or default of the terms-of this Agreement by the other party~_or to recover amounts which had. accrued and become du~ and payable as of the date of such termìnation. Upon termination oftbis Agreement - pursuant to this Article V, the Developer shall be free to proceed with the Project at her own - expense and without ,regard to the provisions of this Agreement; provided, however, that the City shall have no further obligations to the Developer with respect to reimbursement of the expenses set forth in Section 3.2. 1415316v2 t P, . . ARTIOLE VI. ' .' - . . "·'·;~~l,'~bïn~Ç;~;~it~vis~~~g;,~Î.:)iy~;;¿~il:~;=:;,J:.e .,.(, '.. .S~tt~~;~~ft'};.;,'1ReStœictiö~lon®Bé¡ ·'Wb.~~~~élQPêrfág¡r~~$;'f'~+.~~Ø~1~$~êc7ssÔt;~~ assigns andevé1y succ-eSSQ:r m iriterestto'tb.e J:)eveìopmentPropettY1>o£ån;t:~áit'!fl1ereõf;thar!t1i¢'\ i'':, . DeveloJ?etand 'ïtssuccessors~d;8$s1ß1l~s"~ll f>~erate,or~aus~to beo?erat~ the ~ej~~t~ a ::~:t:C~~:~6::~~~eŸotØ\tl1~~~~~t~f~~~r~~it~l·.·~~~ii~~),~,b~.'.~~,~~, ", ·~~~*~.t\~...I~~~~~~ conte)11IJ~~ted tOOCSl1l"O¡ b~.uncieJ;tfilc~.theJ:eU11él~ror~thšeª1?e?t~~etq, .Ilo,rsh8Al~~.s¥p~' , :~;~{~îk~~~~t~&;,~~f:~~~t~Jr~~r~~riht~~f~9~~~~,~~'~~~~':"',; '. pa.:ttnership or, asseci~tion in wbichhe or she is directlyor indirectly interested. ,No member" official or employee of the CitY shall be personally lia.ble to the City in the event of aJlY default or 'breach by the DevelQpetör successer er on any obligationS under the terms oft1rls Agreement. Sec1Ïon 6.3 Titles efArticles and SectiòTIS. Any titles of the several parts, articles and ~ sectiens ef the Agreement are IDserted for COÍlvemence of reference only and shall be . disregarded in construing or interpreting any ef its provisionS. - Sectien 6.4 Notices andDen1ands. Except as otherwise expressly provided in this Agreement, a netice~ demand or ether cemmunication undertbis Agreement by any party to any other shall be sUfficiently given or d~µvered if it is dispatched by registered or certified lI!ail, - - postage prepaid, return receipt requestèd, or delivered p~rsol1a1ly, and (a) in the case of the Developer is addressed to. or delivered personally to.: Mike Gohman St. Joe Develepment LLC 815 East County Road 75' St. Joseph, Minneseta 56374 (b) in the case of the City is addressed to er delivered persenally to the City at: City ef S1. Joseph St. Joseph City Hall 211st AVeIlue NW , St. Joseph, Minneseta 56374-0668 er at such ether address with respect to any such party as that party may, frem time to. time, designate in writing and forward tethe other, as previded in this Sectien. 1415316v2 431 . Section 6.5 ,Countetparts. This Agreement may be executed in any number of countèrparts,each of which shall constitute one and.the SaIlle instrument Sectiòn 6.6·' . Law- Governing; This Agreement willbegover:ned8J;Ld construed in accórdànce wìth',the lawsofthe state. " ' - SectiÖn6.7' . Expiration. This Agreement shall iÀl'ire on February 1, 2013, unless earlier terminated or rescinded in accordance with its ten:ilS. .sectio~6.8 ,Provisions Surviving Rescission or Expiration. Sections 3.3~ 4.5,and4.6 shall sù.rVive ånyrescissioD.; termination or expirationoftbis Agreement with respect to or arising out of any event, ,occurrence or, circumstance existing prior to the date thereof. . Section 6:9. . AssiIDlabilitv ·of AQ1"eement and Note. This Agreement and ,the No~e may be assigned o:n1y'WÌth the consent oftheCitywbich consentshallnpt b~ unreasonably vátbhelcL· . .' - - .:. - - - - - 1415316v2 14 I I t.1 . . IN WITNESS WHERBOF~ the City has causedtbis A~eeJDent to be duly ,~xec1ited in its - name and on its behalfand its seal to be hereunto duly af:5x:e.d, ànd the DevelQper has caused this ., Agreementto' be duly_'-e{':~~~,RllA~;R~ª~i()J;+;-Q1,' 8$,Qftbe date first above. written. h.,::' "'-,---"';ii/1;-Uj,;;;;';¡"'-;'\!< ;,-;",,-,-,-."-". '.. _ , . . '.,. ,. '.' " . THÊ CITY OF ST. JOSEPH :By :-. ~_·T Its Mayor '.._- By Its City Adminis1rator (SEAL) - - - - - - - - , This is a signature page to the Development Agreement by and between the City of 81. Joseph and SLJoe Development LLC. < 1415316v2 15 ~ . . . ¡" .--; ,_ST. JOE DEVELOPMENT LLG-: By Its , - - - - - - - This is a signature page to the Development Agreement by and between the City of St Joseph and St. Joe Development LLC. 1415316v2 16 r"n - . ' " - - E%HJ.'BIã!';Á)c·· Descriptiøn?øf~ève,lópmént :&ôpèrty Pill #'8 - --;-", - " : - - - r'; -...." " - 1415316vÂ A"l S~ · - - EXHJBIT B Form ofT&. Increment Note No. R-l $ UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF STEARNS IN AND FOR THE CITY OF ST. JOSEPH TAX INCREMENT REVENUE NOTE (ST. JOE DEVELOPMENT LLC PROJECT) The City of 81. Joseph, Minnesota (the "City"), hereby acknowledges itself to be indebted and, for value received, hereby promises 'to pay the amounts hereinafter described (the 'rpayment Amounts") to 81. Joe Development LLC (the "Developer") or its registered assigns (the , "Registered Owner"), but only in the manner, at the times, from the sources of revenue, and to the e:x:tent hereinafter provided. The principal amount oftbis Note shall equal from time to time the principal amount stated above, as reduced to the extent that such principal insta11ments shall have been paid in whole or in part pursuant to the terrr¡s hereof; provided that the sum of the principal amount listed above sha!l in no event exceed $643,000 as provided in that certain: Development Agreemeri~ dated as ~f June 27,2002, asthe same may be amended from time. to ti1;p.e (the "Development Agreement"), by and between the CitY and the Developer. The unpaid principal amoUI~.t hereof shall bear interest from the date of this Note at the simple non-compounded rate of percent ( %) per annum. Interest shall be computed on the basis of a 360 day year consisting of twelve (12) 30-day months. The amounts due under this Note shall be payable on A~oust 1, 2004, and on each February 1 and August 1 thereafter to and including February 1,2013, or, if the first should not be a Business Day (as defined in the Development Agreement) the next succeeding Business Day (the ','Payment Dates"). On each Payment Date the City shall pay by check or draft mailed to the person that was the Registered Owner oftms Note at the close of the last business day of the City preceding such Payment Date an amount equal to the sum of 90% of the Tax Increments (hereinafter defined) received by the City during the six month period preceding such Payment Date. All payments made by the City under this Note shall first be applied to accrued interest and then to principal. The Payment Amounts due hereon shall be payable solely from 90% of tax increments (the "Tax Increments") from the Development Property wit1ùn the City's Tax Increment Financing District No. 1-4 (the "Tax Increment District") withID its Development District No.1 wmch are paid to the City and which the City is entitled to reiaÌ1l pursuant to the provisions of lv.1:imiesota Statutes, Sections 469.174 through 469.179, as the same may be amended or supplemented from rime to time (the "Tax Increment Act"). This Note shall terminate and be of no further force and effect follov.ring the last Payment Date defined above on any date upon 1415316v2 ~1 7 ..- '. . whiCh theCi~.sball J:1a.v~teI.1.'I~llat~dth~De¥~1~PIl1ent-A.-~eeID,~lltpt1der~~tion~.2Q?},tbereof :H~~=~~~~;ti~r~~~;;;,,,,;: ,~~_,o,~:"1!~+g!txj1!J,~~~llº"I~r~~~1-1~tjº1!'º't,~Q..Yem.ant,,expr~§~cQtDT1:P¥~'tb.atïb.e,,'J:'~¡"'F·",}:~'.;;,'Jt_'.~:-:::;' IncreIìlen't$'wiU,be Bt1f5cient to pay,in whø1r;iòr in part, the amounts which are ormây1)eooine'': . ;:,/ due and pay~l~ here1.1nder. The City's pa:ymentöbligatioDþ hereunder shan be further conàitioned on the fact that no Event of Default UIlder the Development A~éeIr1ent shall have. occt1lT~d and be cOlltinuing atfhe tiJ11e paymeµ.tisotherwise d~bereundeJ:, but suchunpaidaøOUJitssha1lbecom~ payable if said Event of Defauit s1uill tbereatter ~a.ve beell cured; an~furlher, ifpurS1.la11tto the occurrence of anEventofD~fault under the Development Agreement theCityelect$ !tocancèl'and rescind the Development Agreement~ the. City shall have no further debt or obligatìonUJ):der this Note, ' whatsoever.~eferenceis herebyn1adeto aU oftheprcwisions oillie Development Agreement, , inòludiïi.g without limitátioD; Section 3.2 thereof:' for a fuller statement of th~ rightS and obllgations oillie City; to pay the principal oftbis 'N"ote~ and said provisions are hereby IDcorþorated into this N öte as though set out in full herem. ' Ttris'N"ote is a speciå1, limited revenueobligati0I! and not a general obligation of the City and ispayàble by the City only frÒll1 th~ scources and subject tt:). the qua1ificàtions state~ or , - referenöèd herein. Thi& Note is not a. generàl obligation of the City ofSt. Joseph.., Minneso~ and - neither the full faith and credit nor the tàxingpowers of the City are pledged to the payment of th~principal of this Note and no property' or other asset of the City, save and except the àbove-referenöed TaX-Increments, is or shall be a source'ofpayrrient of the City's obligations hereun~r. - ~ , - This Note is issued by the City in aid of financing a project pursuant to and in full, conformity with the Constituti?fi and laws of the State of Minnesota, inoluding thé Tax Increment Act. This Note may be ~signed oIlly with the consent of the City. In. order to assign the Note, the assignee shall surrender the sameto the City either in exchange for a new ,fully registered note or for transfer of this Note on the registration records for,tb.e Note maintained by the City. Each permitted assignee shall take this Note, subject to the foregoing conditions and subject to all provisions stated or referenced herein. ' IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions, and things required by the Constitution and laws ofllie State of Minnesota to be done; to have happened, and to he performed precedent to and in the issuance of this Note have been, done, have happened, and have been performed in regular and due form, timej and manner as required by law; and that this Notej together with all other indebtedness of the City outstanding on the date hereof and on the date of its actual issuance and delivery, does not cause the indebtedness of the City to exceed any constitutional or statutory limitation thereon. i!::? 1415316v2 -2 .. " . tN'WITNESS" WHEREOj7, City of St. Josep~ Minnesota, 'by its- City dOUnci1;has caùsed tbisNote tope executed,by tþ,e manual signatures of its Mayor, and City Admini~r and has caused this Note to be datêd asaf . City Að.ministJ:a.tor ' ' Mayor '." .. , - - - - - - 1415316v2 ?~ ~ . - CERTIFICATI()~,ºf,~Ç'ISTRATION -f~ .'_ - ';,' t:·~'c.""'~--':~-_-,; '. -. ";c-'-' . o '.-. _~ 0__,,,"_ "_. _ , ' 'It iSl1erebycertified tháÍ~tw~~j~mi:~~~'~~'~~~~t~~1tthe name of 81. ioe Devel~pment LLCand~atthe,re~~~~~~~~~è~~~43~erofthì~ Note, tbe undersigned' hàs this clâyre~stered the NoteÏn ~7TI~Ttiªiº~~\Îc,Jli~&î$t~r~§l.Ç)'M1èr, as indicated in the , regiStration blank belQw, on the books kept by the'undersigned fOI such purposes. . _ _ _J':"\:--~'¡-I ~--.jL :. ~.D - ,~~:~..¿.<~~;{_~ L~-,,: ~ . -'_"-_J.C'-'''> . N~"~'~:DRE$,SOF,t,:, RiBGIS'rEIœI)<O'WNB~ :"{/{~:{~~:\\-'~;·:}~~;r:f -:. ~:l~A"'~,?:~>iti;~·kÜ';~~{'-.;;,.i:':~ ,'- -./,'_,.¡:c -:._~. :"_ ðj}/' : ~ ..c-~:;:,--· l~\:;tEf _'~-:'f.> , 81.' j¢Je~~~eîop~entLþC , , ;~;" :,' ~ ~:,t~~;:); . ~_)~ ~ ..-;,____.:~o ;--~~', ·::0~'~- ~-~¡-;:. ;::'f-{":" .:-~ ::->:'-'<;' ". '-,.' -. -. - ~-< "..;;'.,;_ _ r ",-.c ; t_ ~~ ~..:-:_ i., -, - - -- - , 4 SS 1415316v2 B-4 · - , ' - EXHIBIT A NOTIÇE OF PUBLIC ,HEARING ,CITY O¡r $T. 'JOSEPH .' , STEARNS, couNTY ._-, STATKOF MINNESOTA NOTICE IS HEREBY GIVEN that the City Council of the City of St. Joseph, Stearns Counties, MÏm!e$ota. (the "City'l) will meet on Thursday, June 27, 2002, at 7:05 P.M'. at fueCity Hallin the City ofSt. Jo,$eph, Mùmesoía, for the purpose of conducting a public bearing on the proposed estab,1isbmenf óf TIDe IncrefuentFinanci'llg (Ecoriômìc Developm'ent) District No. 1-4, located v.ritbin Municipal Development District No. 1, an~ the adoption of the corresponding Tax Increment Financing Plan. ' The public hearing is being heldpursuant to Minnesota Statutes, SectionS 469.124 through 469.134, botþ mclusive, and 469.174to 469.179, both inclusive, as amended. Copies ofthë respective plans, as proposed to be adopted, are on ,file and available for mspection at the office of ' the City Administrator-Clerk ofllie City of St Joseph at City Hall.' ' A map of Municipal Development District No.1, and Tax Increment Financing (Economic Development) District No. 1-4, fonows or is attached to this Notice. All persons interested may appear and be heard at the time and place set forth - above. Written comments addressed to the City AdrnIDistrator-Clerk, and received by the - City Administrator-Clerk, prior to the hearing Virill also,be considered by the City Council. - - - , CITY OF ST. JOSEPH, MN, - - BY ORDER OF THE CITY COUNCIL /s/ Judv Wevrens City Administrator-Clerk 50 . , I . .. ". .' - - - ~CT OF~:QF A~ETJNG~?:F,THE "\L,_,:~k~:P;~~~.'=$~iX,ØF::q\/:::,_",,_ " :'~" . . . ~--,. ...1 :EiEl.J)~ May 16,2ÖÖ2 , ' . - . . -<\{." _:~>~~: ,'.: ~-"l: ·i~LlS;;·t.~,~;~~.-\' _2i,î._:F-o:;-·-- .-, -~- , Pursuant t(¡) due calland notice thereof; a regula:t'11ieefuig0fth~ city Council of the City ofSt. Jòs~~,Steämsc;ounty~lVf;TI~eI;o~~~'d~ý~el~ ~ttheSity~allo~Th.~~Y, the l~th day of May;, 2ð02at7:00·J;J~i;fø,li~t1i~;cl'#.ø:a~ ~~art;" 0$Ç~j1i1Îg'a·pjio1ìêiliíèa.rin$,():iitn&,,;;,-}, ',prqpÒsed. adoption Dfth~,I)~elQP~entJTôgræntel~ting íQDeveìC)p;mer¡t Di~ètNo. l),the , proposed establishment ofTBÃ.TJ.icrenJ.fmt FmanCÌ1:1g District No. ,1-4 within ~evelopment District Nô. 1 and the proposedadoptión oithe Tax Increment Financing PlâD. relating thereto. The followiIlg ·CoDnci1n;1.embers were-present: " " ' and the'follo~g were absent CouncilDiern.ber introduced the following resolution and , moved its adoption: - RESOLUTION CALLJNG PUBLIC HEARING ON THE PROPOSED - ADOPTION OF THE DEVELO:PMENT',PROGRAM ' RELATING TÚ DEVELPPMENT þISTRICT NO.1) THE PROPOSED ESTABliSHMENT OF TAX INCREMENT FINANCÏNG - DISTRICT NO. 1-4 WITInN DEVELOPly.ŒNT DISTRICT NO.1 AND - - THE PROPOSED ADOPTION OF A TAX JNCRE:MENT FINANCJNG PLAN RELATING THERETO BE IT RESOL VBD hy the City COuncil (the tlCouncil") of the City of St. Joseph, Minnesota (the tlCity") as fellows: L Public Hearing, This CounciJ sball meet on June 20, 2002, ,at approximately '7 :30 p.m., to hold a public hearing on the followmgmatters: (a) the proposed adoption of the Development Program relating to Development District No.1) (0) thè proposed establishment of Tax Increment Fmæicing Pistrict No. 1-4 witbin. Development District No.1, and (c) the proposed adoptic)D. of a Tax Increment Financing PlaJl relating thereto, all pursuant to aJld ip , accordance with:Milinesota Statutes, Sections 469.124 tbrouglt 469.134, böth inclu.sive, as amended and Minnesota Statutes, Sections 469.174 through 469.179, both inclusive, as amended -(collectively) the "Act"). 2. Notice of Hearing: Filing ofPro.Q.!'8D1 andPla.n. The City AdmIDis1rator is hereby authorized to ca.1lSe a notice of the hearing, sübstantially in th.e form attached hereto as Exhibit A, ,to be published as'required by the Act and to place a copy of the proposed Development " Program, and Tax IncrementFmancing Plan on file in the Administrator's Office at City Hall and , to make such copies av.ailable for inspeci:.ion by the public. 1408144vl 01 ~ '- - The motion for the,'adoptÎon of the foregoing 'resolution was duly seconded by .councilmember and upon yotebeing:t2ken thereon, thefollowing voted in favor: , , and the following voted against the same: .- W'hereuponsaidresolutionwBS declared dulyp~secI2I1d adopted. - - - - - - - - - - ~ 52 , - . STATE, OF ~~g;~ ~.> -', :,':- .' " ~ - '_ -". . - - __ ~<,'-_ ':;,'¿_.' ':'.'-.- ..?,.--.._.-,,_..:;:,:.~_-'~ -,_ ','C COUNTY OF S'fE..AR!NBd,"'" ,- i~J~,~/:':_ : i-:. ~the'UD.dër$igri~beiD,gthe du1yquaJîfied '... City.. .,,' ofthé City of 8t Josepb. MiDneso~ DC) HElŒ~Y CERTIFY thatth.eatta.öheíiresolutionis a true and correct copy of mexira.ct of ri:ñn.µt~s~f ~ D'!eetirigøf"'the City Cqimci1 of1þeCity Qfst. .1öSf@h, ..' ...... ' Minnesòtá ;dù1M,ca11eq and, ~~ci, :as ,SllCD, ,minut,es relátè tô the 'cäJliD.g, i3f ~¡j~iDJiC' h~g òri the Citys d~ve~opmeÍ1t ~Bt¥ict, and 'tax j,mcrem~t ñi1å:ncing distriO:c'" 'c:;;¡ 'y,:? ,', " ,~ , ':' ' -fI": ;' /'::/:-, ~i'~{I -'-:-,'--.' "-'.,.-.,..-, CityAårni"iStrâtOi '.' "",,'. ',';"",' ,- ~__~. - - -, ". - -, . '_' - n'_" '-'co >' .-'" ,_,- ,'_ '._ "_' _~,:__.r::'. _~ . ".'" -'--"'''',':~:'' ".-" .,- :. . ,'é. - - - - - - - - sq 3 · , ' '. RESOLUTION OF THE CITY OF ST. JOSEPH PLANNING COMMISSION' ,FINDING THAT TAX INCREMENT FINANCING DISTRICT NO.' 1-4 CONFORMS TO THE GENERAL PLANS FOR THE DEVELOPJ\.ŒNT AND REDEVELOPMENT OF THE CITY. ."_1 .¡..j. no , , ' ' \VHJ3R;EAS~ the;City Council for the City ofSt. JosePh, MiDnesota (the IICi'tÿ") has pJ;'oposed to adopt a Tax mcrement Financmg Plan for Tax Increment FinancirigDis1rict N9; 1-4 (the"Plan") and has submitted the Plan to the City Planning Commission (the "Commission") pursuant to Mlnnesota Statutes', Section 469.175, Subdivision 3; and 'WHEREAS, the Commission has review.ed the Plan to determine its conformity'with the general plans for the development and redevelopment of the City as described in the 'comprehensiveplan for the City. NOW, TF:IbREFORE, BE IT RESOLVED bY,the Commission that the Plan conforms v,Iith the general plans for the development and redevelopment of the City as a whole. - Dated: June 3, 2002 - - - - , . Chair, Planning Commission ofllie City of St. Joseph ATTEST: 141331Svl (pO - crrv QF ST~ JOSE~H - ~:J'·9,~ifH·?¡\c,;,~¿~~·-.:---~1 :: Ii y:t~~.:~,'J~~~ _~1·r:~~: ß-<-~"·,;_·' .'"c,y·; . -" - -' - - - " - ", - - - - . . - - - ;. - .-:-::- -. -'- - ~ - . _/ _ ~f!~1~f'1f-;tt;~:;:;t~{:~;~~~:,-1{~Û~¡"<;:~'-;õ~:~t,1f}:;: ;:;,:~t1~~{~lV~-~~~;ft;~SiléW[:~:~r-:~~\ . . ;NQ1fJCEOE,¡f!U.Bh1C HEARING' . oNTHË$UI3~~r.\r~\_._...~:Ut:ATìONTO " JENJ~¥~EN~J~J;E~gp;pgPtJº;çr.§;lNq· ~JªfA,Mç.""';~T". .'" ." :.~j~,·~'t:';'(:Y;(.~~,(;;,t:~.·~,·;;;,.' ';" .''.,;~;\~'';¡~''.,~}[~:,'Jt~~gf.~é~:~':'~''t~...:;;ti;~'~t~;;I¡§;;;:;'.~'t;·:~t,)".¡·'t:~,';,>,.~~'~:~~" ; ;~~;'i .t~ifttíìri!ill"lï~ïtj\i~~ DeveloprneniiJf(Ìndií1rffÒ' ?ssìst.VicweSfwIth 'a,piõl:ios~éf'b~nt;fñíf(ê~~nsiôn.' project.. Theapp!ication, !!~ÎI~iti~"_~11a\\1\J~lti;¡œï properties·'récaivir@ ;belieflt,frióm 'Infrasth.!óiéré1rriprøveÎj.l'ên1S;WUI'bè:åssessé&>::CitiZ~hs~frì,ay''¡~,~J";ItifY ,other community development needs in, addition to tb~ proposed project. at the pUblic'hêarhig: ',,:;. ' All, ilÌter~ª!Ii'&t R~~M ·1f}ªY'ë!~ft,e¡F1r:.cE!t·fI¡¡~'nêapi!'l~;~hr¡!pf;~~[')t'tReitM~~Wqr~Uly.'OijlÌwriting;' -: .r ,.,........ DåtE;!:P;3i;d Zti[{';';/<' ' BY ORÔ'ÈRÔPTftEÔITY'ßóûNòít ;::'..~':-! .- CITY OF ST. JOSEPH '-<-:t--~ .:', -;~~)/:f-;~-V':t:.'- :-,. ,/~~~.;_,; : 1.r ., .:.- .<: ~::":-_:-----~ .,'."..<....,-,., -:"..'":: - _: - ' ,'~ .fsF,;c:'JiJavVV'Svrens :,n ", 'City Ädministrå1øTrC1erk· .- '-"'. ~--'-' - - _. . - - - - )-f ~o "', ~ *:..::. 'c'"> ~:i{F~_{'; - - -, lot -. - NOTIC!; OF PLiBLlC HEARING - ON A PROPOSAL FORAN JNPUSTRIAL FACIU1'JES'DEVEL:O.PMENTP-ROJECT . "'.(VI9,WE§>TPRqJES"I}": . - . ~ . ".-- . _ ~ . _ 0 . _, _ . . Notice is herebygiVeri thaHlÌe Ò¡ty Co'uncil òfthe CityofSCJoseph, Minnes'ota (the "City") will meet at City Hall in the City at 7:05 p.m. on Thursday, June 27, 2002, to consider the proposal of Western Development, LLC, a Minnesota limited liability compaT1y;(therCompany),thattl)e City c¡¡ssist in financing the aCquisition; coiistructiorì and ,equippjngo.fanappf(~xirpately67;Oo.Q ,sq. flbuilding to be'used to proc-esssteelfo(' constr~ct¡onusetobe.-~ocated atth$ nortneast 'comer of-Elni Street and 15~~Avenue in, '._ the CitV0f'§t. Josepnbythe issua'nce of r~dustîìal development revenue bonds¡. , .' . - -'- . - - . - . ,~ . 'J1,é ma.ximu. rriê1ggreg.· ate,est¡mated~iihcìpal amou.,ntof'bqn, d,'s or other. obligation. s 10 be' Îssued'to ~nanoethis project Îs $4,200,000. The pr<>ject wil1 be owned by the Company 'and \viii. be operated by Jenisys Engineered ProductS,lnc., a Delaware Corporation, d/b/a ViCWest. " The bondsQLotherpbligations ¡Land when issued will not constitute a charge, lienor encumbrance upon any property of the City except the pròject, .and such bonds or obligations' will not be a charge against the City's general credit or taxing powers but will be payable from sums to be paid by the Company pursuant to a revenue agreement. A draft copy of the proposed application to the Commissioner of the Department of - Trade and Economic Development, State of Minnesota, for approval of the project, _ together with al) attachm'ents and -exhibitS thereto, is available for public inspection f~om 8:00 a.m. tò 5:00 p.m., Monday through Friday, atthe City Hall office in the City. - -- At thë time and place fixed for the Public'Hearing, the City Council of the City will give all persons who appear at the hearing an opportunity to express their views with respect to the proposal. In addition, interested persons may file written comments respecting the proposal with the Administrator-Clerk at or prior to said public hearing. Dated this 6th day of June, 2002. (BY ORDER OF THE CITY COUNCIL) By /s/) Judv Weyrens City Administrator-Clerk ~2- - r . · ....{. . . ·c I 1t:i, 0; St. Josepn.1 e~A,veJ111ê.NW;?{:':.-:;';"·:''''''· ,., ! 1X~68, . :¡;b.MN 56374 -" 63-7201 , i3.o34l ' , . , ,. . , DATE~ ' Mâii30':2002 IS'l'RATOR ..1 I . !. eytens MEMO TO: Mayor Hosch, Council Members, City AdministratÇ>r Weyréns I .. . .., ' ' I . FRÒM:, Joa~roust &'Cynthia s'inlìt1?Straòk. Municipål Develo)mentQroup ¡ . ~sch i;"L~:¡~~(;; ':h.>V,·,<f;;<L'k:it.\¡¡' ·)n 'i'.. I RE: Inducement Résolution- Gohman ConstrUêtionNicWest ,Þroject , ' ::n:.oRS ' .' "{C<';J" ?;:i(;~'>c DSO ,Request: ~ Gohmém.Con~~.s!iQl1js.prQP8~ir¡\gJhEfis,t:;~~n?~.. ofF'n Ing}J~þ:ial"£:ì~\f~IQpmentBond in . .. -.... .....' ." clmcidcr 'conjunctionwith,the'construction"ofå,manUfacturingfacUiW to DèlŠased by-V'iè\}\lest Steel. As .", . - ;assier part of the . lOB process, the City is required toauthorjze th~ submission of a request for allocâticm by the bé\félqpertoth~. $tat~öf'fV1inflesota.~ttacþed for your r~\fiewi,~ a Resolution authDrizin¡;¡ the DeveloPérto:~u¡'lnit'ie'9uiredrnateTÎ~í~tô-theStàtéof,Minnesöia-;applicable to i the allòcation ofa tax~xemptbom:tissuäiice?'x;:;{j,.'.. '; . . 'r¡><'·~:,u.'<':.~u,,;,.. . ..', ....'>/« . . ,...'.... <..,.1 = ~h~~~;re~~~~~i~~ofth;C02S.t~dtion ,~f'~~6-l:0~():~..f~ITt'1rl~faptu~ì~gfa.cilrrYq;'ooo .sf;~f!ice, , I , remalnmg produètlon) un, 10 ê3cres(~outhet'[\portlory'L9t1.·B.lock 'Z)lnthe'BuettnerBuSlness I ,Park (a.k.a.,St. ,Joseph.-ÉûsinèssRark. Thë'sínglestolyfåciliÍýwiiIbe;constructed ofstèel and I block materials wittLceiling:heighjs willrangSfrom12'loffjC,è)10 2ç'{production). C¿onstruction ' cost is estimated at $3.2 mU1ion'With'apadditional $509i.o9(tf01".~verhèadcranes and land - _ acqüisition costs totaling about $380~OÖOToraprojêcft(}tar of.$...3..8 million. - - - . . ~. ,-, - ""'.'_ _., - - - __. -__ _, - <__ _. _,_" _._d __ '-.C " Tp: buildirygwiU ,pe leas~dfromihe LLC ~y 'ViçW~t, . VicWestplans tDrTl0ve into the facility in " D~cetnDér; '20Ò2,'l1Oé prójedt:isex~ecteâ,:;tø create~ß.Þ¡:>foxitnatèly7')ew jòbS'iniiìhwagesiof..i $12-$14 per hour. Project financirig Incíúdes the issua~éè of a ta~-~xèmpt i~dustrial dev~loprrìe~t bó~d. The lOB process is a private transaction between the DevelDper and their financ;lal consultant(s). The City's of!ly role in the process is to approve the tax-exempt status.' TheCitYâsslJrrìès no Dbligation in the lOB proces~. . , Action:'" A MOTION to approve the attàched Resolution and set a public hearing on the tax exempt' status for June 27,2002 is in order, ' ' to !;;' , ., - . - Extract of:Mlnutes ofaMeeting of the City Council of the City of ~ Joseph, Mmnesòta " Pursuant to, due call and nonce thereof, a regular meeting of the City Council of the City of St Joseph, :Minnesota, was duly held at the City Hall in said City on Thursday, the 6th ,day of June, 2002, at PM. I The fOllowingirlembers were present; , - and the following were absent: Member .introduœd,tb.e followmg resoliI1ion, ~d movoo its adopnom - _.. . - RESOLUTION REcp1NGAPROPOSAL FOR.AN Il\TDUSTRIAL DEVELOPMENt' PROJECT GIV1NG PREL1MINARY APPROVAL TO TEE PROJECT, PURSUANT TO ~TESOTA STATUTES, SECTION 469.154 - AND AUTHO~G THE SUBMISSION OF AN, APPL1CATION - FOR .ALLOCATION OF FEDERAL BONDING AUTHORITY cANDFORPREP ARATION' OF NËCESSARY DOCUlvffiNTS ' . AND C.ðLLJNG FOR A,PUBUC HEARING - CVICWEST PROJECT) - The motion for the adoption of the foregoing resolution. was d.u1ysecondedby men:lber , aIld after full discussion, ther~f and upon vote being taken thereon, fue - follov.ring voted in favor thereof: and the following voted against the same: , whereupon said resolution was declared duly passed and adopted.. - - 14D822v1 ~ ~0 - ~ . - ... -,....,. . ~-i"" \' ~... >- õ-- , '~_.'>-"j~ ' '-1 _ .:. :0_"" - ~ - - ., - ,~. . ~ ,. -'.-.- . -:-- . - '. . _ _ _._. ., . ::4 ' . ~ :. (:f) The;Çity~, been' adviSed,byrepreséntåtivesof thè Company that:; cónventioriâ¡ commércili1Jinancingto pay ïhe,capitalcøstøf the'PròjectdlsavåÎlable önly on ~~:' - lli:ÌiÌted basis and at such high costs of borrowing that the economic feasibility of operàtÏng th~;;· - Pròj ect would be significantly reduced; , '\ 1413822vl foS 2 - , . (g) Nopub1icofficial öf the, City,has¿thcr a·direct or inclirect :financial iD.terest in the Project norwill:aIlY pUblic officialeÌther &re6t1y orindiiectIy benefit financially from the Proj ect " .' , . , . .' ", . ' ~ ~. . . . , , NOW, TBEREFORE, BE IT RESOLVEJ:> bytbe City Council of the City of St. Jose¡:¡~ :Minnesota, as follows::· '. /'. ',' ',. ' . ... , . ' 1. ' ,The Council hereby maicates itsprelim;Tuny intent to undertake the' Project , pursuant to the Act, subject to holding a public hearing'with respect to the Project, and pursuant to a reVeDUe agreement betWeen the City and Company upon sùch terms and conditions with provisions. for revision from time ,to time as necessary, so' as, to produce lncome and revenues ,sufficient 'to pay, whén due, the priricìpal of and interest on th~BondB In the total principal amount not :exceediD.g$4,200,OOO to be issued pursµan.t to the Act toñnance the,acqùisition, , 'êonstrUc'tioD., aDd 1nstallationofthe'Project ' , " . 2. On the haSis ·oflnfomiation aVailable tó this 'Council it appe'Bri, 'ànd the Council hereby finds, that the Project constitutes 'propertie~, real and personal, used or useful in , coÍlJJ.ectlon with'pneor more revenue'producing enterprises engagedi:ri. manufacturing 'Within the meaniD.gDf SUbdivision 2(a)(1) ,of Section 469.153 or the Act; that the Project furthers the ' pu.rpose~,sta.tedfÏJl'Sectîon 469.152;, that the availability 6f the,.financing 1JD.der the Act and - , \Villingness'oftheCity to furnish such financing will be a substan!ial:inducement toCompãny to . undertake the Project, and that the effect of the Project, if undertaken, will be to enC01.1Iãge the .- development of economically sound industry and commerce, to assist in the' prevention of the emergence of b1i~ted and marginal1an~'to help prevent chronic unemployment to help the surroUDdingarea retain' and improve the" tax.: base and to provide ,the range of service and . . emp¡oymentopporfunitiès ·required by the popu1atîo~ tollelp prevent the moVement of talented and educated ;persons.,ùut of the state 'arid to areas within. the' State where their services may not be as effectively used, to promote more intensive development and use of land within the City and sUrrounding communities and eventually to increase the tax base of the community. ,3.,- The Project is hereby given prel;miTÌ~ry approval þy the City S1Íbject to holding a public hearing with Iespect to the Proj ect and consideration of info:rmatîon., if any, presented and 'further subject to final approval by fhis Council, Compmy, and the purcbaserofthe Bonds as to " th~ ultimated~tailsofthe financing of the Project. ' ' 4. The Mayor and staff of the City are hereby authorized and directed to submit a request forallocation·øffederalÞcmding authority for the Project. The staff are also aUthorized . to puþ1ish notice of a ,public hearing on the Companys proposalìD theoffi~al newspaper of the City in the form attached hereto as Exhibit A. , 5. The Company has agreed and it is hereby determined that any' and all costs incurred by the City in connection with the financing of the Pröject, including legal fees, whether or not the Project is carried to completion and whether or not volume cap is obtained will be paid - by the Company. ~fp 1413822vl 3 :.,;.,,,, - - 6. . Briggs and Mor~ Pìofe;s~oDa1_ AssociatioD" acting, . as bonq. ,Ç8R1i~e4. Î$. ; " -, tauthøñz~:~'asSist'm ~e'p,repãFãti~n-af1d ieVi~w~of~èêès,~~'do·èuJD.entsiêlàtin$ to~éPr0j~t, ro coIlsrí1twit11th~ Ci.tYAJPrney, COIl1p.aI+yandtheP1JiOþ~Qer9fthe.Bond$ast9>thema.turi~7$" - int~stra:tes ,and otherïeåDsan4 P~visi0DS'ofthéBon~ ...~t)n'as·±ø .'the covenants andotlier . ,provisions ~f th~ neéessår.t dClèIJJ:q.eI1tSand t() sùbnrltsuoh dÓc1XÖ1ents to the Council fot fimil approy~. ._!.,.«...,.k . , , 7. . '. ~òtningm tþisresqll1tÏQn .Ol'ÍIlthê documen,ís Pl"eparedpurs11~ulþer¡1t() sb~l authorize tne expenâi#n-~, ()fany11l11I1ic~pÆÙ fP;r1ds QD,the ProjecfØther ilia¡¡ th,~ revèh,ueS:dèrl¥ea. fr01]lili.e lJ"~ject orotD.~se~l~Qt&tb.~ Ci~fortbi~.~FPo$e. ,'Iï1~. Bon~shal1 notcofiS1;it¡),i~ a ch8l'ge,lien or enc11¡I1btãnce;~lega.l~()r eqmtalUe;,u.ponanY~r,op~ orftnidS ofthe'Çity e~~t thereyenµe; . and p:roc~pled¥f:À t0thf;paym~l t:þ~PQt,µ()r,1;b~lJtb.9?,pif¥.be~j~ tC).an¥ Uabi1ity ~ereon. ThehøldeJ: .oftÌle.~o]ldS ~haJt }¡lever ha.v~therighf;i&·öÒìrip61;åJi$r'·éiercis~()~ thetaxmgpowet of the City to 'pay<1fb,e o~di1):gprincipa1. qnthe Bonc1s)ðt"the interestthereø~ or ,t~ ..enf0rce payment, thereof á.F;aiT1~'any pi-op~, of 'the . Cíty.. TheBon~ shall tecìteÙi substâri.ce that, the Bondsinoluding interest,tb.ereOD, are payable solely from, the reventte aIld proceedS ¡>leð.~ed to th~payrnent tÎ1erêOf. Th~ Bonds 'shall not coi1sti.tuteä d¿bt of the City , within ~e meaning of any boIlStìfutional of statutory limitiLtióIL 8. , In. anticipation of the isS1.18Iice of ~e B()llds to finance all or a pÇ>mori of the Project, and in order·tþ.at cÖIIWletíon, of the Project will not be undUly delay~d when approvet4 - Com¡JaJlY is hert;by authorized to make suoh expenditures áhd advances toward payment of ~t - poJ;iion of the costs of the Project as Company considerS nécess:ary, inóluc:ling the "usè of int-erim, , Short':"tel'IIl finimcing, subject to reimbursement from the proceeds of the Bonds if and when delivered but -otherwise without liability on the part of the City.- - - - - - - .;"6 <} .'... i{':; " ,'! , , . ..~ ,;~ ~f"o'" '1~ '~": .¡~1. , 1~ I ;~ "I .~t.: : -: \ ôj~ '::1 ".:ó ~ ':1 %I - '~~ ,.{f:(f'. - :.~¡~ ::ii~ ::. '~,. , ',1,- ',~ ~ to 7, .~~ ,i 4 .!::'';. , 1413822vl :ú:" , - .:--..~ ,..~-- ,- - ..Aâoptedbyi:b.eCity C01lIlcil or~eCityo:t StJ ~sep~ Minneso~ this· 6th day of June, 2002. , ' ,Mayor .. Administrator~Clerk . " ,-- .; - ~ - .- - - - - - ~ - - - '06 J413822vl 5 · .- itg of St. Josepfi .seöllege A.venue NW ~Ø.1joX668. ; 19sePh,MN $6374 DATE: June 11, 2002 '~)363.-.72Q¡ . ' , . II):: 363..0342 MEMO TO: Sf. Joseph Economic Development Authority .J;EJI.kJ FROM: JO;r~~oust & oÆ~~ Smith-Strack; Municipål Development Group illMINISTRATOR Idy WeyrenS RE: Comrnercial Redevelopment Qpportunities ÌAvon: BàFkgrQung. " ""," ,','", ,-",-,""", .,:",. ,.'...'..,, II1Y J. Hòsch ~vªÌ".~~,{R~,~~f~~ò~!(I~~t!!1~~~-8~~',ñ~~~~~~gtr:~~J~~~~,qli~ª!~.~~~ '~i!~.~:lI~;¡f1:tê.¡;:d9~~Jè~~area and OUNCILORS Id~nli1Ylnsrareas"whlchmay "be - potential redevelopment pnorltles. The EDA has also been ö~Loso identifying funding soÜrces to assist with future projects. .cry EbJen Owners of the vårious sites were'contacted via mail and fotlow-up phone calls. Following is a 'le5è1mcider summary of property owners responses: .Ian Rassier 1. Laundromat property - Dan and Margaret Kippley: MDG has left several messages for the òwners, but have not received any resP,onses. ' 2. American Legion garage: The Legion is, interested in selling the parcel. - 3. Floral Shop/James and Theresa Kacures: The home and business would need to be sold -- tOQJether, but they are interested in seliing and are comfortable with the EDA presenting it as a redevelopment project site. .4. Vacant lot at 25 -East MN. Street: Kresbach Properties & Mary Ann Kresbach. The are not - interested in developing the parbel, but may be interested in selling the site for. a new developrnent projëct. They indicated it is alright for the EDA to present -the site to potential developers. 5. Meta! building a'l: 123 1st Avenue NW :- U.S. Bank contacted the current owners/estate contacts. They arë 'ñòt Înterested in selling or redeveloping the site at this time. 6. Lot north of Super America: It is okay to list two of the threé parcals as available for commercial developrnent. Other: MDG also contacted Knight Builders regarding plans for their facility and potential , expansion. They are in the 'infant' stages of planning and will have' more information later this surnmer. Recommendation: As a part of the comprehensive planning process a survey is being conducted which includes questions relating to businesses and services which may be a pJeasantaddltion to the business community. MDG is also receiving input from individuals and organizations relating to the need to revitalize and invest in the buildings in the core or downtown portion of the City. A business open house to discuss economic development relåted issues has been scheduled for Thursdaý, August 1 st at 12 noon at the Fire Hall. It is suggested these potential sites be discussed at the meeting along with potential financial programs that could assist with projects (e.g. low interest - loan, tax abatement, HOME funds, SODP). Comments from the community received as a part of - the surveý process would also be shared. Action: ' MDG requests direction from the EDA on proceeding with redevelopment opportunities. 0q - .:-. - . V .;......,-"""-!-~ '. ,·,THISPAGE INTENTIONAl,L Y LEFT BLANK' . ._~ , , , -". , , , - - ~ - - - - , , ~ , - - ÎO · .- itg of St. josepn ;,çqJ1e~A-venI1eNW %'.~-~.;~·~~~c:~~ ~ 'tf;;.::5i c~~n~~~~}~~-_=iá~:~~·i~"i~¡':$;~,t .~~ :.~~~~. .~~~-~! . Ó~'Elòx'66&, ,Jòseph, MN56374 2())3~h72()i ' IX: 3690034Z ' DATE: Ju~~ 11, 2002 unuQ , M~9, T<::, ~~?"E<;oDO"'!7 P~,,!O/1inerjt~jjq~;¡:~~~ '-~' +". "¿{- iJ~ll dyW~yreIlS FROM: 'J~anne Foust &' Cynthia S~~ftåc~;:>~~nítiPaì Dèveíóp~ent ~fOui(> tlé:t£m;~ ';,..';<-~" !j/4~jt iÛ,. --.:.;-{.;--\ < ~'J-'\?t:M:~d::i};E(Æ ~,~ . AYOR RE: Decorative Streetlightlng Update r:ry J. Hosch :>tJNci:L()RS Background: , Atthé ÀprÌl EOA meètingî Oommissioner Deutz rep(jJÏ:ed that the Chamber of Commerce is Jb Lòso working. on ,phase two. of. a . City beautificatioriproject Phase one, was thé.. installation of n'y Ehlert , decorative lighting along Minnesota Avenue.. 'Phase two of the project includes instajlation of 'Iè Sclmeider lightinø along Coll~ge,Avenue from Co. Road 75 squth to .29Sth Street. Phase two of the project an RasSier is in the initial stages. Project cost estimates vary at tHis time. At the April meeting, Commissioner DeUg inqÜir~d if th~ BDA' could. assist financiåliy . or assist with grant reque§ts to organizations sùch as, Quest, Xcel, Steams Electric, Astound, US Cable, etc. BDA members concurred that this is an' ill1Portant economic development project and - r~quested MDC3 ihvestigate potential funding sources as this is th~ gateway tô the commiJnity. - , MOG nas drafted a letter to the utility èorrtpanies regarding participation in funding the project. A copy of the letter is attached for your information. Action; - Thi~ ifem is for information only, no action is required at this time. - - 1/ · -. ": ..": - Beautiñ cati on Donation Requests 1. Xcel Energy - pending ,2. Astound - pending 3. ,SteamsElec1ric - pending, " " . 4.' Quest ~ Does not fund ~ ptojectssUch as this.. Guidelines are geared more ' . tovnml tec1m:ologyin~~,~1assroom grants. ' -, 5. . I:nitia.tive Foundatiori. - pending' - , .. .. , " - ~ - - - - - 12-- . . June 11,2002 , Mr. BrqCe PoweJ! XcðlEneœr . ' 3515NoI1b, 3~ S1reet , PO ~ôx 80S St., Cloud, MN 56302 Dear Mr'~~~~,";~Ci~i;¡ '1(e'''!~':;;i~ ~'_\,' j ,'., c: :': _ _ _ 'T'~;:'~j~~~J'i'i~'~'i'~ "',c'~~;/l).:'. i'> ' :;~j; {"t The Sf. JosêPliCHBmœr ofCôÌìnnerèe is in the p~s ofraisiDg capital to implement Ph~~]I of1he'"Sf. Jose.tJh Bea1mijCaiionPx()j~. Pha~e I Which, ~ iniûaredby the Chamhe¡' in 1993lesU1tedinthe installa1ionofantiqu~stYle light poles, paving stone and , pår1é:ben.ènes in the downtown area within the C1tyofSt Jo~h, agro~community witf.in your Servlce area. Pna¡;:e I wa$ compJ.eted,~ the financià1 assistance of a~mn.ber of organizations. Eiiclosed is a projectrepoTt which descnDeS both PBase I antIPhase II, project costs ,and . propòsedlÜ1lenitieS~ l'hasell wìll not be'possible without the on-going SUpport of organÎ711tÎons SUêh as yours. On behalf of the S1. Joseph Chamber of Oommerœ and EcoIlomic Development Autbority~ we request ;rourcönsideration of a ,donapon to the Chamber OfCommeTce's, - - "St" Jo~ph :aeau1i,ñcaiioD. Projeçt". ,If you have Q,ueStions or would like ¡¡ddi1iònal informatio~ please dO nOt hesìtate to, contact us either at the city ofSt. Joseph offices at: 320-363-7201. or our office at 952-758-7399. ' Thank. yon for your eonsideràtion. Best regards, Joanne Foust ~uriicipal Development Group , - - 72; '. , . . THIS PAGE INTENTIONALL Y LEFT BLANK '. . .'-. , , - - -- ,- -" - - - - - - 71-{ .~ itg of St. Joseph. ,Gp}1c:gtA.;¡CDU~ NW ~U~OJt 6fj$'. .' ,)pseph. MN 56374 ~O)'ª63-7201. DArE: IX~ '36300342 LERK( ~~~.TO= :. ..~.:JOSaPh e?Oh~rniçD~eVE!10Prn~ht~g~~r~~>:>d".. . . '.',.' .' -"*", ~~R ~ð~:'; "'i:i~;:l:~' Wo~sti~'Ó~;~i~¿~:~~~:~i~;;:'~:~;IQPment G;:UP dyWeyrenŠ . ~-f~-·-'-~J~__~~;.t~:~:i:.__,,-~·,~~~~_~?f-~p'_~ _ _ _._ .' _ __~-,_____._ __'. '__n"__",-,·----.__,.,-__- : AYOR RI;: T~ ,!I)Cretnent Finanoe Glijdelines/RaþIi).#~~~-tf})F",T.1 .xry 1. Hósëh 51"1, "icf~_,;-::_o___, ;~-,_,\-- :D;-~~ _:~~.j_~:]-:;'-~/ '-. -d- ; .- -- -- 6ë!Ëkgro~~cf '.' ' ..,... '.,.' ....., ..'... ..,.. ", .")iJ(:)-;$)",,?;",,,.,,:."';,<:t'I\:;:,,"(i'fi"'1 " ." .'. - '... . ., OUNCJLoRS At1~·Ma~..2,002'tÌeieti')gthe E:DATaqú~steâMDGreview and make suggestions relative to the re~is¡on Of)h.éCity.~~ T!-D.~HiÔelines!RaF'()rt Card. . fu Loso "'-'..'__ - .'_ ._ ...-'.,-·,c._.. Dry Ehlert MDGcohdu~ed researchon';line and Via phphe withadjacént cömmunities/organizations 'Ie Schnf:ider regardin.g TIF standards. In genera1 commul1iti,es indicate a.desir~rto useJ'IF~V(hen a prqj~ct: lan Rassier .~," " '-Y._"._. ..,ç~:~-.._t_;=;-< .'-.. ::'-~--i;:'T' ,~'>. ~ c"~"",,,,,,·<'·':.- ~" . ""---" ~ ,-,,,';--"~"''''-'.~,--~.' . '. · Intrease$ the amount of, real. e~~têcªnd p~r~òDªlprgpeiJYill"eJ;trt:l~nt in the .' cÒrnm4nity~;k,{",,.q if"f');'t¡j·x'/.ú'<'" ';; ,,;.,;'....,c·.. ." - ,\,. ...,..-,,;., ;;·..,'..L> ";,¡,' · ;!Jncreäse~and retains existing jåbs within the community.. , . ." '." 'u' --;:--- __ '_ _ _ _ _ _.' '_ '. '--._ "_ _ _ _ _ ___.:"-__ ',' - _ _: ,__,:::''':> _ _ _ '_:,___ _, _ _ ":: :~ ','d_, ,-:- ___:,,_,_- ___:_: _ '_ _;:,,:._-\-_.-~ ;-_-:. _: ," !>FU!fills,,¡:¡perceived need ""jt~jÌ'í1Þ~llÇ§mmºr[~fQf-',ili$:t;pårtíéurãr",:Cémmêtbialöutlèt . " ..,.~~~:~:i~~nt with the IOCE!! COrhpreij¡mS>i¥'e:PI~J'J;,Ú;,f:~";CL;'i}".~]..ç':;,:\;LfØ.":.},~;.¿ · Positively impactS the City's financial base. , , Atta9bªp.i~. ¡:¡ r~i¡;eº. q9PYQ.fth~,,:TJf.BrºPP~ª! ,gªpmj"BøUcy'.,;.ßjeàs;a;t\ot¢:strikothrOUgt'ìteXt indiciitesV'pröpo.sed deletions, italicizeifieXt prC,lvides information to you,'while reviewing and - dOUbléundér1ine~.t~~i~~i?~~$,~[~Rosed new lal1~uage~'\:;'J" ' Action: . . - .- .-: Input is reqtièsté(¡iiMÖfotnial.~~~~~n;lsreqUitèd, at thrs' time. ~~~~ ' ;. "-. . "';,> .. - - 7S- . . Atta.chment B .0. _ _ TAX INCRE1\1ENT FINANCING PROPOSAL , Rating Analysis Craà.iÐ.EB.B:ci Report Card 1. Ratio of Priyate to PubIicmyestni'ênt in the Project: ~ Private FundslTIF $ Private Investment $5:1 ~ 5 $ TIFlPublic Investment 4:1 -Ð- 4 $ Ratio of PrivatelPublic Fimmcing 3:1 .~ 3 " . 2:1 ,....p.. 2 " Below 2:1 -+- 1 2. ' New jobs' cr~atedandr~tåined in the City: Craàe~ Score - N¿w employees in St.Joseph as a result of the project. 50.¡,. .^. 26+ =5 - :!5+ Bll-25 = 4 ______. Jobs retained in St Joseph asa resultofthemoiect. 15+ C 6-10 = 3 --:15..j,. D 1-5 =2 - Total number of iobs created and retained. None F None = 1 - - ;'--Ra.tio-of City FÌBB.B:eÌng to new jaBs ereated: . Cnidè: - ;.. - - t TIP assista:nc,e requested ' '$:&,000 or less per job ~\- H ev: jobs created $10,000 or less fler job B $ TIP/Job $1:,000 orless per job C ns,ooo or less per job D, :More than $15,000 F This standard is proposedfor deletion because it does not appear to bejunrnonal in a community the size ofSt. Joseph If a project generates $550,000 in tax increments, according to this standard, the project would need to create 70 jobs to receive an "A - Excellent" rating; 55 jobs to receive a "E - Very good" rating; 45 jobs to receive a "C - average" rating or 36 jobs to receive a uD - below average" rating. This is a very dijficuJt standard to implement in a community of 5,000 population, in close proximity to an ' urban growth center (St. Cloud) with significant development costs. 4,--Pay Le:\'elof Jobs: Cradc: Pay Rtiage '!f efEmpløyees in RBn;;e Totsl ~7R;;es Crade $:45,000.')'> or mOTe " 01 A. t35,000/y> ¡3r mOTe B ~30,OOO/)"r or mOTe C t20,000/)"f or mOTe D Less thæ:1 £:!O,OOO F - Tøt3.1 Wa;es / '!f 0: employees (FTE) _ - .^. yern;e '.'.'age $ - This evaluation point is proposedfor deletion because job creation and minimum wage floors are mandatory il'l'the City's Business Subsidy Policy which is required by state law, Per statute, we will soon 710 - --c. - ];2 implementing minimum wagejloÔT$ forSIJ.bs1.dy whichinclutie anaçtua1 dollar amount or a calculation whicha17ives at. qnaçtualdollar amount!"r tþ~ mi1J,i~wage, requjrement Thisewzluatjrmpqint f!-lsp a]J;p~tQ benon-jimctiQnal ina 'commun'Ìt)1the Sžze0f,St. Jq~eph.. 4çcordi1J,g!o thiß standard currently. " thg 1teWj(J.b$ creq.t¢ß muSt averd.~e $Û /6?/fir, ..tq aóJiil!Yeliii ''4. .... ßxc~il,ent!' ratirtg; $16~83Ihr to tidñ/evea 'W -.1{eryC!ôod" rating: $14.42/hr, to 4chievl{il "ç':"A.vetag~·' ratirig or $9, 61/hr. to achieve a "[)- Poor" fating. '.... .' .' . .·,~{,;\;;i;·iIf,~~~¿,;,:;1ß;¡.~I~~J'~å:,è¡'.~,: .'~~.~.;co~j"i;i,:;/ ;:;,i;'i'" s. Increase in Real F1~tjJt~ EšflróatedMàt'ket Value: Grade: ~ ....""""-. f.,····;"'·"";..,,.!',',·,," ,~;cEStimà'té·mRtk.et,v~û.~øf$ite,~,tì~v¢lQPi:tl¢D.t·.,·, <","BeiOte/AftefÐeve1øpJheJ:it'~" ".'.""". f ' , ',1:5 ",~J'~SWi~,"~1d¡h'': Estimated market va1u~ of si~ before dèvê1ôpJhent ' ,·,····;-;,;1:4 1:3 ~$ ~."...,...,."./ ,. "'v, ;~1i()cfv~1J.~'J3~f9:t~/Bfter,~vêlopD1enf·' 'O<.,'~ " 1:2···,~·2, ¡:t:\, 'f~~~~"-; --.--~'--. <--···;u~:;}Úi:;- :'¡~'{"fj;;!;-; ,,-~---,,--~<,,>,,--,~M;;~~;~;-~<,~ '-';;':"-~---', "'...... "c·~,,,,.._.,,, '..', "-,':':' l~t""","'o"~"r" ",w~,-_,__ i~' ..,.~\\,~\,,- ' Bonus P-oÌJ1tS'<" , . ,.....' .__,__r -- .",.--- .'----......- ~ -~.;.~" ..., .___- -r·___..·· -.-.' ~~ . - - . - . . ~;' .- -' --- .,~., , .' The Pl'êjBatâ¡i£""..a;¡Rê'te..tiê"i4~k1:i13érB.è~"¡[â4idkF~i:áê~lêj~~ty ,.....' , 2 pests ,~, mè.äãheres tøtåe CampIeh_h'e PlâÐ,. ._...____~_,<__<o·. ,l;~~- ~J 'Thedß"telaper agrÈlBS to thePayas)"eR~eÉ:BB:8:6mg. },£I,fiij¡.t ~¡ The proposed project wii1 redevelop a previouslý con.taminated,or _woo ~P9ip1:S!' envUonmenta:lly challenged site. .:;"..,..,.. ." , .. t:i' - !, Mixeà-asB fJrej B6~~éÐ.:¡;¡¡; , .. 2l'Jo~ts: - i!_:; ,'--,¡-~- .' ---'~-"'-"'--~'~: . . ._ -C> __~.-. ~ ---, t:~W~ÎeJ!a!~:,Jl~w.~åy~!:g!~:·,¿,,:.. .y,....". '..... ' '·"m, ~ .'",' ,..;c!r>:~f·" "i"" ·;2!pumtS"" '.". . "....., - - Pll.QPOSED ADDITIONAL S'TANDAKÐS: - 1. Theuróposeddevelopnientis consistent with the City's long term development and redevelopmeIiteüidelinesåS cofttaIDedÌ:i1 the Citv'sCöD1prehensivePlan. YES (5 points) NO (0 points) ....' ~ 2. The Developer agrees to paVooas-you.,.gO financing? ~...' . YES (5 points)' NO (0 points) 3. There is' a demonstrated need for the ëommerciaIlindus1riál development within the Citv of 81. Joseph. YES (Spoints) NO (0 points) Total Points Scored / 6 = average score. - - 5 = Excellent. 4= Very Good... 3 = Average. 4 = Below Average. 5 = Fail 77 ".' ~ - PROIDm REPO . ..... , " P~T C/Œ.D , . Oile5WJ}f. QNUie Psmts . . ' ' 2. 3. --.-" V-ery' GßBd A'/Ð1'ii:¿c 1 1. ;ReIs:!' 1"ere S ~'C' .' ~= 2 .Pßil '" 5. 1 :g enw .n-Sìlit!: 10'['.1i. PQ.y.r¡;£ ' .... . . q /5 GPA· - - - - - . - - 78 - .. .~' itg of St. Joseph '5 Collèg~ AvenueNW ,Q.J:lox,668; ¿. Joseph. MN 56374 :2(1) 363-.7201 JUne 11, 2002 ax: 363-0342 DA TE~ - LFiRB:I MEMO to: S1. Joseph Ecenomic Development AUthority , , DMINlSTRATOR FROM: ~tìvtP. " . ¿þ) , 'dyWeyrenS Joa . ne Foust & Cynthia Smith~Straêk, Municipal Development Group AYot RE: ' OomprehensiVë Plan..... Economic Development Ohapter ri:y J. Hosc:h ' ."0 ". I SaC:*~.fC?MI1Ø" ,'''.F''? ,;, '%'''';'''# ',. .¡,.:..'C'j''t,', 'i: t{,,;;;,g;iih';~g"'!}"··\;~i'ìr;h:.é"'''';J;;;~·'·i;tj'fi')Jl'¡."riff: .·X;::'f··"tCC· OUNCILORS Tt1eºlfit;i;q~~:r1:9I,k;reçent¡~CJl'!itiàt~â!tié"qÞØâtê¿ofthe'OffY:!~'{)omprehenslv~Plan~' 'As a part of the pJaQ, a" çhapter will' pe ' dedicated to 'economic deyelopmel"ít. ,.'In adç:l, ition the land use )b'LosO' chapter will illustrate cUrrent and proposed future commercial and industr'ialland uses.' ';ry Ehlert: '1~ Scbneider, The Economic Development Ohapter will contain the foJlowing information: an Rassi~r · An economic overView. · Economic trends (income, labor force, commercial and industrial building permit activity, unemployment rates). j ." · PubliC ~npUtindlÚding positive econQmic attributes, ,challenges, business and service opportunities and input on public assistance for businesses). · Impact of the ColI~ge on~he local economy. - Hístoric preservation. - - - · · Technology. · Redevelopmentopportunities. · Future land uses - commerCial and industrial. · Downtown commercial business district & policies. · Highway commercia' district & policies. · Industrial development & policies. Action: If there are any other areas the EDA would like to include in this Chapter, please advise. , The Planning Commission has. scheduled a "Business Meeting' for Thursday, August 1,2002 at 12 noon at the Fire Hall to obtain input from 51. Joseph businesses relativé to the Compo Plan update. In addition, representatives from approximately 30 organizations were sent a survey relating to the Compo Plan. - - 11 . , . . , , ' . , '. .. ~ THISPAGEJNTENTIONALL Y LEFT BLÅNK ' , , , - . ,:..- '" - -- - - - - - Bv . .. ¡'i'~iìÁiþ:. -if< - -- - --Ii _'N">.' .. tt!J 0 - St Josep· ~~"'~'_=<-~:.~"·'·-C~:_'. :':..-:<,~.,.-,~:~_"--.~,:_-> .~t. _ _ _ ',' " __ _. _ . . _,_ _ . d . ~ _. .' " _._ ". . " _. _ ,_ '. _ . ",,'........' .,...' ,';;'<""....,..,,..,. .;\j.',..",...:c ,.'.' ,'. '.' .'.. '.",,' '.' . - . - . . .'-." '-, -. .-<:- <-':. ."-': 1 . ··;'-<::(r~--.- .- .. . _ .'. c.' ,',' .,. ";" ,. "" ~'. '_p.~ ",~,,,. 25,ÇI.1Uc:~A.vCiluc:NW .- . -- - ..... .';C','-',.:"." ~c'-" ..;-, ·;J<,;;o"- -"~':""""_":-'-'-';}'~-'~'¿:':i::'"Þ~ >'O.Box"~6~. ,-~"--. ,t.losep~ MN 56374 370) 363.,'720J DATE: JUÍJ~i;<t'~{~~º~I'r?®\;T' ~ax: 363-0342 ~ -of'.., :iLmuü.' MEMO TO: St j1~~h~~~;~~~;,~~~~~~;~;t~~;~~~"~~";/xt" ..' ' LDMINISTRATOR. FROM: udyWeyre~ Joanne Foust & èyiìtl1ia 'SrrlÌth~~trackj ,MI;I~?i~!p.~t ,peveIQpm,erit Group .1.--,1i ?~:-}~:~if:~:-'1~k~~"'~>n ,;;.~; ::~ r0~:'~;:··:~~:¡·:~:}~:,~~~1~_·_ '_ J~~{)~~'G;_t~?41/~~~:i; __ _ ;~: _ .- <-1. _ .~:'-_-~' :~\;i.f~~_-:_;:';';;'- - -. ~.-" - .'~ ,,',-::;'~ .' H·i ·,_,C [AYOR R-St ' M¡~ñøSÐ1åÖol'Ílï1Ï¡jnttYCapitåìFund Presentation. ::¿~~~:;":.;iiÎ'irl1liÎ~~:!ÎÎf~~~;i!~~~~~~Z:~~Î' ob Loso;~.. ,'': ", : 'St cppy:'òf" tMe .Fúnd 9u!~.elines !$ ~~~hed #9f Yl:?yr)nfofl'ljlàtiol'l,.. At 1Äe December meetin'g ..the .QI}' Ehl~','/i1 ".' 'EDJ;1ñtlicatett a presentât.i~rp,!n'lhei MCQE w,9\';!Jâ:pe)n orâer.: .': ' '. " ,"" ..' ,:, ,':'lTIâ}<e apf~s~111~npn;òrithe.Ptºgrari:1 ,aó.c:I.ªI'1~~Lqu~stilJ1:1$1.þeEDl\.'mªYhave.x ;J?'--~ ,_J;~- "-'-~=--';-~;?':" --':{~~'~'\<:~-->'0-,h~:"t- ;~"è---'oi '~:::_ -..i-'¿/. "'~":"o-j. :i.j'--'':-> "";"_>:O~~ :-:.-,-"/-~-:::;:--'":~_ T-~-~:'-~- -.._~ --.-.'-. - ---; .:__:: _ -_'_ -_:_<_ -.' - - - ~__ -::' _ .: _~---_. --, - - . . ""...'~~~è~lc;~;i~~:l~~ß~aj~~~·~fm!~~~~i::'c'~~' ,.'p" ,', ........ - - - - - . ...-" . .--<0-. ....., - - ~I I . 1HIfi: ~ .~ ~'lESOTACÖMMlÌNm:' - CAPITAL FUND PROSPECTUS MEMBERSB:IP AND LOAN ,FUND PARTICIPATION . , MINNESOTACOMMt1NI'rYCAPITAL-~ a MiJi.nesota NonprofitC{)rporstion ',' ". .~. Mùm.esota Community Capital FtIDd ("MCCF') Ì8 a Minnesota nonprofit coIporation. MCCF has not commenCed " operaû(;lDs,' ,- ~ MCCF has been formed for the purpose of developmg, funding and operating a ..flexibl~ se1f-suŠtaming _ clevelopment loan fund as anew development tiI1anCing resourcé'. 'TbisJõa.nfund is : designed to .leVerage millicms ofdòl1ars m löcal revolving loan fuDd(''RLF''), capital he1d by a variety ofßCODomicC1eVêlòþmcnt oÌ'ganÎzaûons'thr6ughoutMinn~ota. It is intended that th~e, econOmic development organizatioris will become MembèrSdof MCCF mÌdpool :RJ.1:' resouiceS,and other local "funds (''Member ;funds") m an escrow accòunt DiaiDtamedat''ã ,finariciål histitútiOD (the "Loan Fund"). The Member Funds. deposited 'in the Loan Fund remain the .asse~ of Mem'oers but are used by MCCF to pr,ovideinitia1' funding ofDeve1opment Loans made byMCCF.'l\1en:lberFundson d$posit in, the' Loan Fund ~ ~daDle to th~Member tbreeyears after the" deposit by the Member. The relationsm¡),bet\veen MCCF and its Members isdescn"'becl in a Pm.'tiCÌpationAgreement, which sets'fortn the terms ofmembersbip, in MCCF, and thë obligatic?ns and rights ofMCCF and its Members. MCCF, through the usé . of the Loan FtÙ3d, intends to provide its Members with professional ftmd. management services, greater lending flexJ."bility, and the capability of offering much larger loans th..£!.D. wou1d,bé ,pòSS1"ble wit::blimited existiD.g loCal resources. MCCF Dereby offers locà1 government agencies, community d~elopment COIporation.s, busmess organizations, development~orientated venture funds, public charity and private foundations which are invo1ved in economic development - activities within the 'State of Minnesota, aDd other organizations that have an interest in supporting the pUIposes of MCCF (,rOffereeÉ"), the opportunity to become Members ofMCCF aDd participate in the Loan Fµnd as provided in the Participation - ~greem~t (the "Participation''). _'- , - The follovving table sets forth data with respect to this Participation: Membership Clai!> Deposit¡¡ In Loan Fund ; ," .. Class A 5100,000 or more but Dot to exceed S250,OOO Class B 550,000 or more but lcss tÌ1aIJ S}~O,OOO Class C $15,000" or more but Jess than 550,000 .. Minimum Loan Fund Deposit The aggregate minimum deposit to the Loan Fund is S2,500,000 and ~ere is no limit upon the number of Members. THIS PARTICIPATION DOES NOT CONSTITUTE AN OFFERiNG OF A SECURITY UNDER FEDERAL LAW AJ\TJ) HAS NOT BEEN REGISTERED [JlIlDER THE SECURITIES ACT OF 1933~ THIS PARTICIPATION IS REQUIRED TO BE REGISTERED UNDER CHAPTER 80A OF THE LAWS OF THE' STATE OF MINNESOTA AND' MCCF HAS FILED WITH THE COMMiSSIONER OF COMMERCE FOR REGISTRATION BY NOTIFICATION PURSU4NT TO SECTiON 80A.09 OF THE LAWS OF THE STATE OF MINNESOTA. THESE SECURITIES HA VB NOT BEEN APPROVED OR DISAPPROVED BY THE MBVNESOTA DEPARTMENT OF COMMERCE NOR HAS THE DWISION PASSED UPQN THE ACCURACY OR ADEQUACY OF THIS - P.ROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFEl'lSE. Dated April 30, 2002 82-- ..r.; I . .. , IMPO:RTANT!K)n~ I:OOJf¥~~~S, . ~::iI~I~~='~'~~'~:: .-:,:,.'" ,-::,,::c:'·.,,~vt;,,~~[~~r~~f:':l' (.16j~;;;~"""n"w 'Gh'<¡~~::'~ ~ ,Addi1icm3lFnnriinP" 4 - USe'Of~~,"~.:i()V'eÌl '..k'i"~;"" ' . ~tf~ _~~.. "',R '"" "fr~'::;:'~:', :':':·'·~':;'!~~i::~~':;';~~;;. Thmsfer·ofMCDlbersbil'1tesmcted 6 No l.iäbili:!yfOrD~ofMÇCF 6 No Limit on Num.'bet ofMexnbeJ.'S and. Sizè of LOan Fund ' 6 Closme 6 InifiàlClósin{?: 6 Adði1iCJIlàlCl~6 ~T~ooofP~ci~oo 6 Canitalization .' 6 Fi.nønciál StateinentS and FinanciaJDam 7' Business Plan 7 Puq>ose, 7 Loan Or:iginafion and Other Benefits 7 Loan Originatiôn Fees and Oosing Expenses. 8 Member ObÏiganÒD.s Limited 8 Loan Criteria· 8 sequence of Events ·'Devèlopment Loan Origination to Loan Closine 8 Sale ofPre-Approved Loans to Secondary Market 9 Loan Closing- 9 - Sources of Revenue 10 WOIkingCapitaI 10 Projections and Assumptions 10 B.3Ì . . , Loan.ActÏvi1y DepeDðe:m OIl ~'Origiml1ion 10, , . Qrs1mmmónalS1mctnre ... ,..., . ,lJ.- . .~o#âSaNOlJþJoíifCOIpbIaiiOn... .11, " ,: fTsxEXeiÌlijrtS1atnS U'I1àer11;1.e~l Rèvenub' Code 1-1 ' " : ,':" 'Directoì'Månagett ' .-':,' , "/ . ' , 11 ' M~t1R~Bnt:' ". d. '11 .' .. :'.. . IrdtialB.DàrdOfDi.rectors ' '., 11. ' Bi~ Iiñormanon - D:ireétôrS 11, ; Offi~ 12 ,;:Bib~ñlCR1Jnf~0Ii- OfficeI'$ 12 EInpJ.oyees, Equipme:ot, ai1d Office S~ 13 Summary ofM~gI'!1T1emt Agreement; 13 S ofParti~OD. A"';"""""'_ 14 ummazy , . ""'~ ,~~ PaÌ1ici¢on Agreemem; 14 Memœrship , , 14 'RefundofContriþution 14 Origination ofLoaIls 14 Loan Purchaser A~erit" .. 14· Loan Fund Escrow Agreement S~ " 15· CoDf1Ìcts af1nterest 16 " lPñ~ification 16' , Limitaíion of Director Liability and lTtðP!lTTT1ffica:tion . -16" ' How to Partici~ ,,:. ' ,.,.,' " ., 16' Additional InfoI'DlBtion 16: EDrlb~> - Projections and Assumptions Exhibit A - Artioles afIncoxpora1ion of1v.finnesota Conmnmity Capital Fund ' Exñibit B Bylav.'S ofMiImesotà Conmnmity:Capital Fund 'ExhibitC , Loan Fund'Escrow Agreem=nt' ' - Exhibit 15 Participation:A~ - Exbibii E: .. Loan Criteria Exbibit F 8'1 .' Q, . - . - ~ - 4:oan Purèbas..."'1'" means a secondary market: purcñaser of Deve1opIDeB1: LöanS~byMCCF'. c' "Particiuation Ag;reement SjPTUI~n-e Pae:e" means 1be signatme page of~}1ìJnti.cipation'A~:: B-S In c ,- PROSPECTUS SUMMARY , - The jo1ltJwjng summary is qUrJiifted in its entirety by; ami shoÚZd be read in eordzmction with, the more detailed - žnfo177Utiiorz appearing elsewhere in this Prospec1us andirzcorpormedor deemed to'beincòrþora:tei! by reference in. iJûs Prospecms, incJudjizg, the exhibits attached to this ProspeChis. Prospec1ive,Mëmbeis shòuld Cariful/y coTzsžder the faëtors set forth under "Risk Factors" and,are,urged1o~,m! th!s ProSþèdusin its .entirety. In GeneraJ " MCCF'. is ,a n.e;w1y<W'ni7.ed~taJ;Wn~profi1'cœJxmmon formed. for ~-of devè!Oping-and~a"- f1èkib1ë self-sustBIDing'I08Ií iìmd as a mw' d....;veïopIneni ftrnmo1nf resource., This loan fmíd is designêdto'1eVen1ge' millions of ,dollars inRLF .capital held by a varietÿ of economic development ,~7.m;nm: throughoDt:Minnesota., 11 isint~r'le'.d.tiØtbesð~~opmeIItqrvmi~ans will, become ~ ,'of ;MCCFmuf: poolro..F' resourceS mdòthe:rlocåi fUDðB'~Funds1 iti aD.~esCrow àcCoünt ~m!'ilBt aiirnmciA1 ~ (the "Loan }<m1LfJ.- TI;l.e1v.fembe:1':F1IDds ÌII, the Loan Fnnd ~ '~, a.ssetSof ~ :lnItareusèclby MCCF tö", provide initialfu.ÎidÎÌÍg Of tkvè1óþment LoaDs made bý MCCF~,MèInber FuDds 'OIiâePosnití1be .I,.ÒaIlFÛDd.are IP.fnnMhle to theMemœr three yeaISafier the :first deposit by 1:he Meri1bcr. The re1minm:nirœtwee;nM;CCf and its Members isdescri1:ed in ,a,~on, AgræmeIlUhatæts forth theteIIi1s ofmeIIùleî'SbiPof MCCF"and;the ob1igitionsand IigbtsofMCCF and 11$ 'Members.MCCF is assigned 'the right triICCciv¢ allem-nmgi;arid iIItêreSt~· upt>D. the Loan FuUit1'he priÍÌcipal amount ofth.e MeI:nberFunds in "the Loan Fund will be usedsole1y for the pmpòse of ini.tia11y funding a Deve10pnient Loan ~by MCCF; The ParticipaíiOIlAgreêmen!,rêquires tb.át¢or" 'to'disbursement of Loan Funds 10 the borrower, MCCF shall receive con:finnation 1bat the secondary ,maOO:t Loan ~ ~purcbasedtheDevelopmentLoan made by MGCFiDd 1he pun::basê pric:e of the DeVe1opriJ.enfLoan' , DasÌ>"'..èD, :xèceived ,'ia:Wire tïæIsferby the Loan Fund:, .Rese1lingofall Developmertt.'Loans·madeby NlcèF'wa , Loan.:Purchaser assures that tlie Loan Fnndwill œ self -sn.staining. See "Business Plan" . ' ' ' - '..' , Corporate ~ormation . - .. McCF was incorporated under tre M1nneSota Non-ProfitCmporation Act on Á.ngu.st: ,7. 2001 and its corpÒra1e - office is located at 13911 Ridgeda1e Drive, Suite 260, Minneapolis, Minnesota 55305. See .. Adèiitional InforinatiOJl'\ ' .~ership and Member Lo1u:!.Orlginai:ion - ~' - \." .. lnorder to enç:onrage communities .an.dor~;¡ni7Jrtion.Sof all sizestp become Menibers,MCCF has,three classes of membersbip. The MeIIJ1y>..rs ofMCCF bBve theauthori1y to elect six of the nine directors ofMCCF. Each of the ' 'three classes of Members has .the right to elect two directors of MCCF.. MemberS areenrltled to one vote for eác1). S 1,000 deposit balanCe in tire Loan Fund or c:ontribu:ted to MCCF for woñcingcapital Met:I:Iœrs ofMCCF haveno« otheirigbts of governance with resp"..ct to MCCF and have no prop:myrights ÍIÌ'the assets ofMCCF andOO eaìnings ofMCCF shall inure to the benefit or be distributed to Memrers. See "Membership". EachMexnb'er ofMCCF is entitled toparticipate by originarlng Development Loans that will œ iniíially fundedby the Loan Fund. Participation includes the right to origina1e Development Loans of up to ten times the amount of the, Member's "deposit ba1ance in the Loan Fund, or the amount of workìn.g capitål CODtributed to MCCF. Memben; receive, at DO 'c:òŠ!; the services of the' Loa:í:J.Fund 'Manager, Who will work closely with Mèm1>m, prospeêtÍve borrowers; and other lenders in analyzing and structuririg t:I'ansactions. Upon approval of ori~'mm£ Member and the MCCF loanœmmittee, the LoanF1}IldMaDager provides all serviceS with resp:ct to the Developmènt LOan closiDgandnegotiating the sale of the Development Loan 10 thel-oan Purobaser. See "Summary ofParticipa1i6n A.g:reci:nent" and "Bu.sineSs Plan". " Use of Proceeds and Contribution to MCCF - MCCF does not receive any ,proceeds of this offering. The M..."IDber Funds that are deposited.in the Loan Fund remaiD.funds oftheMemœrs that deposited such funds. AJIinterest andeamings upon the Loan Fund are assigned by Memb~ to MCCF by the Members pnrsuan1 to the Participation AgreementTh.e ::¡!':~~ent of ùl Loan Fund interest and earnings by a Member is aC01:rtrIbution to MCCF. See "'Use of Proceeds.'" fÞ 2 - . . 1Vfiiiirimm Particip~on - No Mamriuni Participation' , - - .' ..-;. - (ill) Investment of Loan Fund MCCF isgt'311ted by Memberst\1e authority tQdirectinvestmen1 of tbeLoanFunti Snchinvestments s11án ,be 1iD:rlted to t:tS.tioVemmem :BoIids. U.S. GöVenUneDt Agéßcy Bònds, '(lS:Governirient Money Market Funds. and federally-insured Certificates of Deposit U.S. Government Agency Bopds and U.S. Govemmcnt Money Market Funds are not direct obligations of the United Sta1eS of America and are not backed by the full faith and credit of the United States of America. 6~ - <, J " ~ Earnings and Interest Not Refundable ' " <, r -;_ ,. ·A1l.~t;w:,ahd,iDteTesi~ait,æSigned by the ParticipatiOn Agreomœtto MCCF Bnd'~ contÌibuD.anstoMCCF.bY thè~,~~D.òt'~1e.,· ,.,.',' ",,' ',' ",~".,' . ..'. Start-ÐpN~prófitCi)~O~~ , ., MCCF bas not C<?",m!'!T1r~f'.(f opeTa1ions and is a deve1opme:ntstage rorpora1:i~n'SDbject'tothé ~and risks or adeve10pment stage coIpOIati,on. ' ' " , ~ - - - . . . - . Forwaro-tooking'S~enU Jnvo1Ve RiW and Unèemùnties ,-,...- ..; "- . - ( ,~- =: - ~ . -"-' . . ~ ' ' This PrOsPectUs. con1aiIis,proj~onS and' assu1npnons 'Which'are~31 EXbibit'A'~~"amf Assumptions"). These Projections and Assumptions and stBtem~ in this Prospectns and in œrmin documents incoipora1ed' ordeP.meil incoI:Porated by reference. in this Prospectus,consôto1e foo:ward-looking Sta1~ that involverlsks and nncertain1ies. These statemems relate to the futme p1ans,objectives. expectations and iDiemiOnsof . MCCF and' '.'.. .be identified,Qy' the . 'of dS'sIlCh ,.' "bèlliweYf ,"estimate" ~eXpect" &C~~ "intend" ,~.. -" . '-,.'. use WOI' as. " ", ,... ,.oo ," . "1å!i';",w'!l1Lm'. "p.oteIrtiár'and similat' " .c:Uis; Acitna1 reswn;' could1iiffer ml:rtf'1rHmyfrom1hose P. ,'~ ..<' ..' , ".express1 .' '. " .,...... "... ..'.'.<' '" conteÌDplmedJby theforward4ooking statemem:s made in .~,.~'8nd in 1be Projectionsand'Assrimptions' wbiCb are contaÍned in Exhibit A. " .' , . ',:;' , ' " . , Fut:1:Ire revenues are'1IIIp1'edictable and it is expected, tbatOperafuÌgresù1ts will fluctuate from period to ¡erlod. The ab~ of an operating history makes it difficult tó' '8ccuraie1y forecast revenues in any given period. ,Revenues thatare derived from origination fees are ~ upon the I111tDber ofloan closings which cccurdurlng any' given penod.If revenues fall short of expectations, MCCF will use,its workingcapì1a1a1 an acœlcrated rate., See, "Busine.ss Plan". .. , The :Pz.ojectíom and Assumptions ··assùme:lmd MCCF eJqJeCtSto pre-sell a]Hoans which are JJiade from the Loan - Funclto the secóJlfÙ!IY market, In the event MCÇF is unable to pre-seUèertain.loansto the secondaIymaI1œt. the _ nUIIiberofloans made may be less than projected and revenu.esd.eriVed froxn origina1ionfees may-be S!ibstan1ially '. - reduced.. See"BusinessPlan~. - .' , Mcc:F exp:ct.s losses, TheProjectioÌ1s_ arid' .Assumprl.ons of MCÇF con1aiD.ed' in Exhibit' A 8nd other fOrward- , - looking smtffiTlf!Trt~ anticipate that MCCF will incur losses from operations in ñscal years ended June 2003 and June 2004:andenjoy~,s1ight profit from~onsior -the ,fiscal yearend6d JW;2005. Futme revenues are ~ctable andnoàssUranœ can~gîveD. that MCCF 'WÌllreIÌ:lain ~tab1e in future Yean;' ' Projections and Assumptions Not RevieWed by CPA .. The hojectionsand Assuniptionsaft1:!cbeð hereto as EXhibit A'were þ¡~¡;(j,intP.TTl:nyandwere not reviewed by a cèrtffied independént ptiò1ic:acconntaDt " Additional Funding Upon1helnitia1;Closing, MCCFwill~èommitm...~ for not1ess than S200,OOOin wo:dång C8pïia1 from wbich to fi.tiâïic'e projected operating deficits over the next three years. Although. m.ana.gem~ ofMCCF believes fuattlrese, cash flow reserves and cash flow from operations 'Will be adequate to fund operations for the next three years, such sources may be inadequate to cover such period. Comequently, MCCF may require adåitional working capital funding and if such iì.mding is not available MCCF may be required to limit ordiscon1inue its operations. See "eapitalizat:ion" . Business Model Unproven The MCCF business model is 1&gelyunproven. Accordingly, thè MCCF busin..'"SS modcl may not be successful, and may need to be changed. See "Business Plan". - 00' . .' ~ USE.OFPROCEEDS ' '. . (t';Æt~;'};it;,/h({~~> },k -_{:,.:~§{c!~.¡~)r-~~-t~~~k~~;.:;~~ . ; ." - - - - '.'. - - - - - - -' -.. . - - - - -' - - - - - -. -.'- - - . . - - -. ~ - - - -. - - '-- ,".- - '-, :'" - - - - . :~, ." - .- -' . MCCF wïn ~~eany funds DpOJlthe.Cl~ oftbi~fartigipa,ti~ . @~Fn11n~~!epuiSt1ant~t.þ!s,·..' ,...' . ·..~T.f..rll~::,· .' .' . . ~,'-; .-.,<, ~BRs'lu~ì'r.,;; :;:'-'.>' Eliga"bnity aild Classes orMembers .' . ;¥<L:~~~il&t , MCCF has t1iree ç~sesof~ersÞip. The¢~noJ1Jÿn1~:~oftiJ¢ ~Jrt~oftl1!sPro~.~:p~ ". ' ~~~~~~L.i7i:~r-~a""'t aggr.egateaxnoun1it,Meni1>et' cöntJ.ibnte$tQMQCff'ÒI"wor1@,gcapiml~ The thteëc1asses øfttlem.betsñip.. 'c" aiej~¡~~ï!e~;Jj,; (,,¡<~S0h -'" <,·.r+~v.';i~~:['}:~¡,,:.~ ',:,"'::":~,:~~~.", <,::~..,~"~:.,,~:.,"::~;;~:~;;~~,;;~'~;:':,'~.~,:;j':-... ,[,.:,~:.: ../;;"..iii:,',},'r/1: 1 M~t)tnass Ag~!!BteDeDCIsJi'Gfä~~eTtö1l1eLoan FuIld or' Contributíons toMCCF . . ;~:..~'~~W::¡t~:~_:,;\~:iL~) class A $lOQ.600ormore<ndttöCxceed$250~OOO). ....,., , C1assB $5.0,.000 ormore bût1ess than. $100 000 <c;,,·.<1 '..' - '_-. -.'.? -_ __ --: - - - .-, .__- n _- _ "_'. ,_: _- _ n. _~: C1assC'$Z$',OOQot:moreb1îtlegUban$ß()..o~ø, , .. ...'. _,,',. ~~tL~.i~__1t~~~~~~~~~;: - In the event a 'Member makes mòre thaíi oDe depòm,. bOth deposi$ sbaJ1 be aggregated for purposes ofdeter.lniþing " themèInber&bipclass ofsnéh~. ;::'::".:,.."",;,." ...., """,(..<';,;;,,,,,. -, . - . . . .. .. :á~~~~1~~~~4:m'Å=~~::~~tn:~~~~1F~~"N~'~ refuIldWill ~J"I'1;ii~ the .Men:ìbersbip ClasS to w~Ch $I1Cb Meriiber then bcloIlßS. -rn the. e:reI1t,aMf:m13er~. ....~. . refunds ~ tØ the ,LOan ¡;'lDld, Escrow A~ that would redUce the b~1M1æ~to:'teSS<ttim'í$25tOOOr)C; " the enûreba1aric¢, Of the dêposit of SUclì. Meîn11er, sha1l be refunded, and the IIleII1bersb!pt>!SI1Ch~ sbaU t~:g~;~~.~!::~~:;î~r:~IW,~~~r'J}C . ,:~' ":::';{';:;', . <:f;f;";, ;i"tL ,+:, :'!,';i" ~¡, Refttnd ofJS08ii Fm.d DepOsits ,~~-~ .-- -:'-;- . .":~ . . ~~ ~"._ .- '. -__. ,'i, AMember:s1:uillreœive a refund ofall or a portiQIlóftheit deposit~ in1h7LOaI1E<nnd~:i,R ~'~~ ~. :n,R1!~ 19,MC~i~,~~J;~~Ag~,~jtibe;amo'DJ:ít,öf£eÎu.fuitbat1lìè,MembetW1šheÞtô,.ieceiVe·, ThiS1lO~mayõê gÎVenàt any time after the third ~emary date of the first ~ to the Loan Fund maðebý'" the Member. See,"Menilieršbip~ and "Summary of Loan Frmd",. .c'--, > 'c..' No ~ inÅs~~~,~'i&~~;/" ...'.~:.. "t::\, Thelv.1emben; ofMCCFbave no ~,rights in the assetsofMCèF and no earnings ofMCCf·šhá1l~.tóøi¢"}d. benmt of or:be dis1íibut.ed to.theMerilbers. '., " ;':, -'.' '·:.be...," , '"¡t,,,,: > ";"--'::.:~);;; .__.._~_. n. . .<'~~< - Members to Elect Certain Directors -, .-- ,. . '-,~.-~.' ,>' =~~...'.. --{.,.. 7 ._._. , &1®:ijf1he~'\i"~~~sDï"1\.1emþêis:~'~;rigbtto.elect1\y() directotsofMCCF..'tA~iseri1itled1oÓk vOte for;eaæ.'~~ºOO. '. àep[)sitedin'.t¥ Loa.n :r-uniior . C{)µtn"btited, tQíhe,working:œpiOO"'of'MGOF{fråctionsare disregardcil) ,aníI ··~candidate. for.directpr ~g..'~ :~st:I1UIJ:ìb:r -ofvotesftom the class ·ofMèmbeœ no~i~Atmgsuch~r.Ü¡"e1ected.:.:XJ:aDSfers9f.Loari.Fund:,mœrest:earningstoMCCF·· are nOt·, deemed contrÏb1ílions forthé1>~sc:~ ofMem1:Jer'r~!lEP,gbts. ~~laWs - ExhibîtC'<¡ .",:> ... . . ' Limited Rights of Governance ' , The Members£JtMCCF' ,~the ~to elect Six of ~:~ ofMCGF andtfu:îr appi~vðl5hanbe . . '~PriCJi toaID,,;,rñn~1 cra1Jrld.gement -oftheitrigbt to c1ectdirectorsi'~er, the Membc:nf~MCCF Sha1l bavenO~.rightswith~~~ofMCCF. . ';;,' -. .- ~ . - " - - , . TransferofM~~})~, MemOOrs may transfer memb=rshipS or rights of IIlf:IIlbembips only upon the writte:n consent of the Boaniof Directors. . , No Liability for Dèbts of MCCF ~~ bavéIiO)iab~tYÆorthe ~ ~ilities, orob1igations ofMCCF'due to their ~.: No LimÍtD~ NuÌnb~ofMembers8DdSizeof'LoanFuiJ.d ',. ,"', - > - . , , ' ~·15 no 1iIni1 upon·the aggregate ~ ofMemOOIs' of MCCF or the aggregate· 8IDODIIt of deposits to the,Loan' Fund. ThÍs Participation will be a comiDuing offering until termiTurt~ by MCCF. CLOSING ~ :.,., Initial Closing ".' . This Participation 'Will have an initim closing· ("'IDitial Closing") upOn' the oCcuirence of MCCF receiving and 'acceptþ1g . Participation. Ap:eemems from ··~s .pI'Ç'Viding for ,deposi1s, to the Loan Fund in the· mimmnm aggregate amouiJ1of $2,500.000 andthe depoSit.of sricb. funds m the LOaD.-Fund. Additional Closings . ,Additional OoSÌJlgS of this ParticipatiDn will occur following the lnitia1 Closing ~MCCF accqJtlngadditional Part:lcipati.on.A~ents and ftmds ford~~ in the Loan Fund; _ ',;' Early TerminationofParticipaïion, - ,. -.-. ,. --, -. '.-' - '- In the ev~ the Ìni1ia1 ClosiiÌg ðœs 'not ocem' on or before October. 31, 2002., this Participation s1W1 be d.~f>.d 't:.eImhmted and. all ñmds will be retnIned to O:fferees by the Escrow Agent of the Loan Fund Without interest. CAPITALIZATION , The total capit~1i7.ro;on ofMCCFas of April 30. 2002., and3Sadjusted to giVe effect to reccipt ofgn¡nt funds, is as follows: ., ' April 30, 2002 Actnal As Adiust:ed for 1nitia1 Closing Member Contributions $0 $..0- Grant FtÙldS Re::eivâble1 $0 $200 ~ooo Total Capitâlization $0 $200.000· 1 Northland In.stito1e has been awarded a grant in t1re amount of $250,000 froni The Blandin Foundation ("Blandin Gmnf'). The B1an.åin Gram provides that $200,000 of grant proceeds are robe used by the Northland Institu1e exclusively for MCCF workiD.gcapital needs and ~ support upon MCCF receiving Participa1ion Agreements providing for a deposit of $2,500.000 in the Loan Fund. ,Northland Inst:it:ate has ente:redinto an agreemerit 'WithMCCF to apply these gxant funds for MCCF working capitBl and oporarional support reeds upon the request of MCCF following the Initial Closing. The Blandin Foimñmnu or its deSignee shall receive a Class A membership with respect to $125,000 of this grant and coIreSponding Loan Fund participaD.on.. No part of the Blandin Gram is included for purposes of determining whether the miniTT111TT1 Participa:!:i.on of 52.500,000 has been ~f>..d.. qÐ . - - , 'FJN.ANCIAL STATEMEN'l'S AND FJNANCIAL DATA , . . ~ - ,- ,~ ,,,--:"~. -. ~ , . .-.-".... . " - - q( , . -~- -- --- -- --- ------ --- - . . - - - . - . .. MccFffttP.nñ~t6offii~ access to othar fumnc:ÎY\g ~uic;;sin the .futare.S~~1Jy. ,an 'application is Ilo.W rñïnt for a1!S treaSmyDepåI"!JI1éinf certifu:atiOOl_~tœ MC~ as aCOmlt.;.nny D~e1opment FmaIicia11nstitmíon rCDFIj.'Whcn.~ MCCf. will apply for~ funds to siìppòrt the.~çm of,¥CCF's economic:D.-øve1òpIDeDt InìsSiçm:.- " . ' ' q~_,~ ;_~_:~-o-~·"~~----- - -. ::--,.:---,-.- <>-_._, '--0. <~~. . - _. .'. ;__ -. -. -c· _, '.~ - LOan Origination Feesànd Closing'~ . . - - . MCCF'Wîll~ñ~rgèt1lebon-ower a1oanþrigÌIlB1ÌoD. fee,of 1.75% for eacl11oan. ~ hm!o~a is aiso reqµired to pay an other :feeS,an:á'~ énStomañ1y iLsSOciatedwitQ. ~ c1oSings, roo1ntiing fuc; lègal expenS:s of MCCF i:o.cw:'red with resPect to the loaIi closing. '. ., , ,," '. Member Obligations Liri1ited For eachMCCF I..Oan, íheoriVttming MemQe!willberequjred by th~LoaD. Pmchas:r to fund 'a credit reserve. of not , less .than S%~1Jle ,prµlclpal ~Ò1lntOf1heD~òpmeítt Loan foÍ' apericidof 12 monthSfoll~the c10s:ing~f.: . the Sa1eof'~!>~~J!;;,etrt>Loån to 1he,Lo2D:~, ,:In the evcnÚhepnce 0treredby .thð Loan~ is disco11ÌJtedfx'orii'p8rV$1e"Cfaœ 2IÌÍ01mf,of the·Iœn), the Member orifJ"minÈ 1beD::vaopJæDt l.oan wi11~be '.. responm"b~e fotfulldingthè clifferenœ ..'œtween: 1båt,parvalue arid the loan sale price. The aciua1'predit 'fèserve, ~ reqrñrem..."11t oranydiscOurit from par value will be :known to '!;he orir;nmnr Memœr prior to tœ commrnn/!T1t by MCCF to the borrower and other fundirig sonrces. The oriVnRtinf,Member may dec1inetoproœedwith1he '. Development ~c1osin.g, Without any obligation. In the event the Development Loan miginated by aMenìber is, sold 'at a prèmium. the Member. ~~ at closing the Pevelopmcnt Loan ~ payment.(the 8IIlOUD1 paid by the ).SoaD. ~m~ aft1ie fBc:èamonnt-¢thelOan)...~ ~opmentLoans.so1dbyMÇCFtQ the LoanPmchaserare sola at pår:value, âtaprCmium, ò¡; ~ discQuntedÍSA i'W1Cti0Il of the~1aœ. However, ,'the Member~a1~1$'e1bf~l1Ìmity1Óacceptor:reject.1hèclfer~~,Loan.Purcl1as:t. .. , . ~.. : ,--_. ~. - - . ; - . . -.. . . . EXCept as set forth abOve, Mèmbers do not- incur any ~nses, ~ or .obligations with respæt to Development , Loans 1ha1 it ori~ through the MCCF Loan. Fund. - Lmtl1Çriteria. ' - "' - - MCÇF has. established. general criteria for the review and anaJ.ÿsis of Development Loans, MCCf'Loan 'Criteria include$~cingpo1icies that.prÖvÏde for minmmm and ~JoanliID.oimts, project ~gibilityrequirements, allOwable uses ~flDaIi ptoceeds,Ùle1i~Dle~, fees and êharges, aridimerest ære and loan1etm provisions. Also included .:µ'e,. boirowercreditcriteria, wbiêÌl addreSseS equity' and col1atenil requiÍ'emenis, debt'toworth nmos, Per50I1a1'~ niaÍlaooement experience à1iiÍ COIDpany perfofmance factors, aDd minimnm c2sñ flow and debt serviêecOverage,requîrements.Sè6··MCCFLoijn Criterià...,. Es:hibit F"~ " ' Sequence of Events .. ~evelopment í.Q~ Órlgmanon t6Lo~ Cl~' ,., .' - . The folloWing sêts· forth a' represêma1ive' sequence of events reflecting'the proœssfuat will. be followed when a Member originates a Development Loan: . , , ,. .AMem:beri.d6ntiñes a de,velopm-"'Ilt project which ~to;qualify for MCCF finBncing and an authorizedre¡iresentative 'of· t1ie Member contácts the FUnd,. Manager ron~£ the poten1ia1 development project and its iimmciT.g needs~ . ., , " , . The FundMmmgergathersdetaili: of the d..,'"Velopment~ect ADd itsfimmcinzneeds ûom the Member repre.~e~ . 1f the develoPIIleIlt project is eligxòle and has a high probability of moving :foIwzrd,the Fund ~0'eI' sets up a" site visit with·the' applicant, participariDg bank. Memb~ repre~re, and other_ developmemt project stakeholders.Dming this mecting. various ñnancing st::ructmes will likely œ considered which 'Will affect secondmy market loaD. pricing. The Loan Purcharer Will be called upon to give prP.Hm;mn',Y indica:tions as to whether the proposed fimmr:iTl~ qwili:fies for a secondary marlœt - . - . pnrchase and 10 provide an esrimm-eñ pmc:basè price of the Development Loan. 'TIbe applicant will œ hívited. to submit a formal loan applicarion and will be àdvised of the loan approval proCess and time line' , , q~ - . ; - .. . . . . . ..-.c ~ " Monies advanced by the Loan Fund to the title company or authorized closing agent for purpOses of closing the , Development Loan will be reimbursed by wire transfer from the Loan Purchaser on the same day as the transfer by the Escrow Agent to the title company or authorized loan closer. q3 , . Sourœsof RevenUe. . , The ,primary somœs of: revenue of MCCF are loan closing feés PaYable by 'bottowerS ujxmCÌòsing of loans made fromtb.e Loan ~und~interest upon the Loan,Fund wbic:his esrlmJrtM at l~%p=" 8DD1JI]].LoanpIcising fees are ~ intPmrlE".ÒlO be 1.75% ofthêpriD.cJpal ~of.the1öan. ID.~ñit1nn,1o:the 1œnêl~f'ïee.MCCF will be, emit1ed to receive ftom the borrower dJrect, out ,of pocket ~'with respect to the. Joan ~!:S'I~on, ~tiinf legal 1'eeS,fucinTed,by MCCF. ,', ; ,', . , '- Woñdng Capital MCCF~~~.reccive ~i'DIlds,~ tl1e,C1osingofthiS Partïcipaûon.'ÁIi~ Funds~µ;~ to this Participation, shall œ paid to the LoanFDIld Escrow Acconnt for pmposes 'of funmnf' the Loan Fnn4.' T1ìere are no commissionsòr other . applicable to this Participation.A11 ,rè1ating 10 MCCF· . to the Initial , ',' '," ". '. ~ '.....,.,'" ..... ",expe:nses, "" .pnor Clo . '. '. '.öa±e ·Will·'J:urve ··either,beerl"·Pàid for by' ~ Northland ~ 'or'fiom' < ,.,' ãWaided ,to ..tl1ê Northland SIng Co'- '. ,. '"c, .'., .. .' . ".' '". 'o., . graDtS" _ !m:tifure for.Sîìcb:1fuìpOse'3 " Ti1e:þiß'IlieIit ofthe~ of MCCF1:JY.~Nortb1ând triditiit~l$j),of~le by MCCFta~·N{)X1h1and~.Sèe~CapitR1i.;.m;on". ; "", '~..~ ' . ," ~. . ~ ".- . 'PrØjecti6~ancl Ássmn~onS:', ' '. . _ - _ l _ . _. The following should be read in coDjmJ.ction with the PrDionna Inèome Ståt~2nd MCCF' Profonna Assumprlons('"Prqjections and AssumptiOns") conmÌT\eñin Exhibit A of this Prospectus" The discassion C()T1tRiTted in 1:biB'SèctiÔI1 re:flèctsm.aDågement'splans, ~and l>'-.Jrefs. . Act:ua1reswts could ði:ffèr mR1P.Ti~'1y ftom those discIlBsed.ïnthePrójeëtionsand,AssumptióDs. Fadors, tb3i èou1a,canæ oroont:ribute i6 these difiicnlìieS include; but~nOt1imited to;tb.oSe disênsSeã bcl6w and e1sewheIe in tbis~ ~ in ~Factdrs". ' , '. ' ~. - . . -. - ", - -. - - , . 0.' . - - - , , , . ' , The Proj~ÔIl$ and Assumptions reflect losSes from ,~tionsDí$ß3,550 ~1he ~od of July 2002 through June.2003 and an operating loss of$51,560,for~ 12month period of July 2003. tbroughJune,~004. Duringthe periodÇlf Jw.~' 20ò4through June,20Ç>5 the Projections and Ässmnptìons reflect. ã ,prOfit froIn.opetations of'$6,113. - The ~g profit or loss ofMCCF is dependen1 J.arøoclY upon the nuIIIbci- ofl6an closingS' and size ofloans made ~ duriD.gany reporting period. The Projections and Assumptions arebased:upon assumptions COI!ceTnin~ the ~, - of loan closings as shown during each of the periods and receipt of alåan closing fee Of l.ï5~/o of the principal' amouñtofeach J:)evelopxnent Lo~ closed. The, other p$1aIysourœ of revenue of MGCF2S shown in. the - ProJeètiom~_n,n Assunip1ionsis iI1terest upon 1heLoaD. Frina;'Vfuidb. ~ f$tÏ1ìÍ;rteð at 1.25"1> F :mT111T'Q'. :.., ' ' , - -. - '." '. - - . ~ - . -- -. - , .-' -' - -- . '..' . . . - '~-' - -". -- ,- . The Projections and AssumptionS reflect extIàoniinaIy' costsWî.tb. respect to profesSional serVìcès ðDrlng July aD.d August of 2002, which reflect 'one-time additional service' fees payable to the North1and Iristitute fo~ start-up , services following the Initial Closing (which is ;ntf'!TIñ...d to occur on July 1, 2002). Thereafter, professionåJ. ~ceS are base4.1lp()Il8 conttacted fee with Northland InstitDte of $4,000 P=1" month formanagem.ent services and $1.400 ~loanèlosing. See~SUriunaIy ofManageinem:Agreeme.nf'. ' , '. '<' , Theprojeqed losses from ~om;, dmingthe first three íi.scal yeatS, as shown in'the Projections and .Assumptions, VIill be funded by:grànt ~ iIÍ the amomrt of $200,000. lnthe eVent this wòñåD.g capital and tre revenues from: operatiom; are insufficient to provide nèœssmy workiD.g~ capital,' MCCF win eîtherr.ñse additional working capital or will be required to reduce or1e.L~ its opera1iOIlS.The Projections ,and ABsmnptions assume' the Initial CloSÎDgwill occur on July 1, 2002., In 1heevent of,a delay in the lJùtia1 Closing, the Projections and .Assumptions shoul? ~'viewed as commP.t1cingas~1he date of the &.'"tnalInitial91oSing. , Loan AC'tivity Dependent on Member Origination ' MccF will rely upoI1 ;.tsMem1:ters to originate Development Loans in . order toachi-,""Ve the loan' a.ctivit:y level necessaìyfor'MCCF to œ profitable. It is anticipatedtbat the IUIII1ber of loans made byMCCF will cont:i.nue to incÌ'eaBe during the three year period following the Initial Closing. , qtj ~ . , - - . . . Initial Boudm DirectoI'$ - . "..- , ,", .. -~- ~ -" = .:: ", - ~ 30 West Superior Street DUlUth. MN 55002' <"-. Gte,g Bohlen 41 " , 729 Mai:n. S1I'eet EIkRWei.MN 55330 - Teny Erickson 5.19 SW First Avenue . '-.-:--. "'J'-<~ ; ':-;~:.~~ Rochester, MN 55903 Nancy Non- of Duluth. MJnnesota. is Economic Development MaDager for Mùmesota Power. a regional electric 1l1i1ity" She cmreIltlYIIlaIUlgesa $6 'million ,'business "deVelOpment rev0lvilig loan fuIÙIpOI'tfòIiQaiidpromótes eçQnom.icð.ewelopinentm~1Prl:hepumd œnïratiMinnesota'and'pt>itions øf:Nortb:westWisc:ònSñt!Ä 19B3 bUSiness ~ón .m~ofthe tJniversity of W"1SCOnsjnÆau ;C1airei,Ms,,:U'JoIrpä1sòbóldsamästet's degÏ'eem r8~'." \' '_._J.. - . _ _ - -0 -." .- l - ". . Agricnltunù ,Economics froIil"dW-Maciison. Prior to joirdng MiImesota Power m 1989, Ms. NOII' worked 31; a' ciow:htownrevitälizatiOn consc1tmtt for the CÌtJ of Supe:riM, WlSCOIlSÎI1 and as a,c:ommercia11oan :offu:er at'ìJSBank . . . inDn1uth.She serves on numerous boards re1a;ted to economic d..-ve1.opn:ient. jndlnrïm2 the Northeast ~ Fund, the Inùuth:.~ A1;Ifhority. Ariowhead~. CoDœcti.on. Fnndcrs AdVisory CommhtI'!t"';andthcUtility: EèonOmic Deve10piJleDí .AssœiRtiOD:. 'Her paSt bóard ..s:rvicè '¡n'~1n~ 'I'be NortbspanGioup, Inc.; Hafixmrìew Economic Development Cotpormicm, aDd Mñmesotà,Bnsin:ss Fmanc:e CoIpoxation. " .. Greg JIobJenbas' ~ an Assirnmt. VICe Presiden1IQ,mm&eial ì.œn.oiñc:er afFIl'StN~m4 :BIiDkofm River ~J998.&'JsTeSpOD.Sibl~Jor 1TI!m~fthe bank's ,gtYVeI'DJIleJIt¡~mfdepartmeÌlt, andB1so Pmv;ides'genera1 cori1ìnercia11~'Se:rvices to ms c:Ustom.ërs ñm:n ~ bank'S,1mdD,mfiœ -inEIkRiv.e:r. 'Mr. Hob1Cn'~,lendíng , -, - . 0"' ~(~ 0_ _ _ _ _ _ - - . _ _ _ . '. _. _ _ . expertise has resi:ì1téd'iJÍ a significant incréa:se in the Il1mib=r of SBA Loans ori~M by the bank dnrlng the·paSt t;bree yearS. which has ~ it:to MÌImf;,~ot:a's teråh 1argest pmduœr of SEA 7(a) loans. Prior to joining tœ báDk, MI. Hohlen served as an economic deve1.oF in Mille Lacs Coaníy for eleven years. In that ~rmy, he m!m~~ seveÌal revolving loan iùnds, provided teclmica1 ass;~œ to 'small bns1u,~' aDd provided eccmoñ:ñc development services tO$eVexalcpmmtnriti~ jn MÏ& La.csCoun:ty~Mt;~is,:a~ñnrno, ,of~~mim~ University andhàs a master'~~.ftötñ ~)J~qfMhmesota's~ ~liII:{~ofl¥'~'~. '.', " . .~. ~...- ". -. ~'-. ~~'_i ~-,....: __ . ~ -.' ," .'. Terry:Ëriéksoìi .has ~Dff.een yean; of direct 'ecoIiom1c devcloj,meñt ~enœ,:priT1umïý 'iI1 sOufheastem Mimiesota.; Mr. EI.icKsoIi1ms beén eiDp1Òyedby AquilaNctWorks'~'2001and pIesently'oSeIVeS as ItS 'Director of' Economic Deve1opmeÎ11.' From 1986 to 2001 he iiws·instrum.em:al Ülsiarting Sow¡.~c:tf'!TT1 M"mnf"$!)ÚiDevelopment Corporation,'ânà msubSidimy Southeast. CónsUham:s 'Inc.', w11ere he fò~ the ·~opment.of·mw.c¢ iI:dtiati:ves tbatconfunie to havè aíriåjor'impact' on the region. 'I'heæ i1ic1udM'the d...'"Vclopmem:œarevolvìng loan fund, còntractualbased developro...'"Ilt services for over 20 mrmicipa1itìes and 1hræ counties, and a bnsiness support program. 'that ass;isted, businesses with a variety of t:ecb.ni.ca1 andñTlÌm~ needs. Mr.Erickscn received a Bachelor of Arts degree from Wmona. State University in 1977'. " Directors serve without co~onfor ~œs performed in thciI capacity as~ ofMCCF. ~ OñlCerS ~ The officer pO¢.tions of MCCFconSist of a chBir, vice-ch.air. secretaIy and trea.suIer. In additi.on; a majority of.the - ciirectors may. appoint a mmager to act' ~ cbief executÍVe officer of MCCF. Officers of MCCF, other than a ma.Dager/chief executive officer, sba11 œ directoJ:S ofMCCF. ~ following naÏfied. p::rsons serve in the capaci1y set , forth after their respective names: . Name Position Steve Duscl:: Cbair Greg Hohlen V¡œ Chair N8IlcyNorr Secretaryrrreasurer Scott Martin Manager/Ch.iefExecntive Officer Officers s...'"IVewithout com.p:msarion for servic..."'S re:nderC:d in their capacity as officers ofMCCF. Biogr.apbical Information - Ofi-..cen For)rl.ographicai iDformation cÖncèmi.ngMs.NoIT and. Messrs. Dusek and Bohlen, see "Biographical Information- Directors"" " ' " , , , Scoti Martin is 49 yeats of age and is the Chief Executive Officer of;Northland. Tn~. Northland mdi11tt~ receiVes' compensation pursuant to 'a Man.2",o'êni.."1Jt Agreement between Northland InstitItte and.MCCFi, Scott Martin receives co~ensation fronJ. NorthJ.and Ins1im1e for his services as ChiefExecu1ive Officer of Nœthland Institaie. Scott:Martin. has bæn involved in Q,mmunity EconoÌnic Deveiopmem tbrongliont all ofbis professional career. He has~edÍD. a variety of public, private and non-profit oI'f?lTl17mìons during the past 27 yems in. both managerial and beam positions, Before coming to 'the Northland Institute 3D. January 2000, '.Mr. Martin -was a Vice President of Business Development for EDPòwer, Inc., a Twin Cities-based multi-state energy marketing company from 1997-2000. Prior to 1hat, he was Director of Economic Dc:velopment,for United Power Association (UP A), a regional electric power suppJier based in Elk River,:M:N. His respoIlSlDilities included the estBbH~hTTÌfmt and maIJagemcIit of a $10 n:i.illion Business Fimmciug Program, which provided gap fimmcin£ for UP A's customers, and oversight of all economic 12 q~ : - 4 .: - . , . .' . - . . .. - o I:Ilstitute shall allow its Chief Executive ~J:, Scott Martin, to serve 'as 'ChiefEXêbu1ive',:,,~, - Ofiiceí of MCCE 'withoutàddm.onal ~e Îót-~,serW:es. Mt:., ,Mar6nsnalLrepon: to the.,,' - ê"'}':" :~,~9~gó1:~~~;ò.f'Mçœ~' ';, , ,',,"i"¡ é~ ;:'., " ~ . - - -. , .- -" . Compensation. Institute shall reccive compensation for, startup services during the 60 days following, ,th~ Initial,Closjng ona co~reinibursementb~-'WÏthwppört ,Staf;f time being charged at $90 per , ho~., in :additioIhlnsfi1nte shall receivereimbmsement for 1ravelarid 'otm:rOiIt m pÔèketexpenses ." ,duringthisperiott Commencing with the ~,~fOn9WiD.gthe ~Closing, 1nsti1íJteBha11 13 q'T; . recèive~oÌìcf$4ßOO pêtmODth~ 'sit4ØO p=r ~c1~ niscompensatio~ is,subj~ . , ' <, toanri.úa1 increases of 5% in each of Years :2 and"3' oft1ieconiråct. In Mð1Pcm, Tn~sba}l~, e, reimbursement for :tIavel and o1:bCr om of pocket expenses. ~ costs are 1d'lectaf as I"$fimiltP.!: in , t¥Proj~andß.Ss~OnsMtRcltMasEXhibit~.- __ ' " . :ÌJ1suriili~'~~'~~~~h'~ ~~nm~~,~MCCPSexPensein~mmê'4'MCCF:' ~ aní:lafficer insm:ance, liability in.rmnm~ and'suCh oth=r ;n!ðl~~po1icies as t1æ'BOanf of'Dirèctors ~'~',~~,i~:::e'~11~f".MCCF as,~~~~~~,~ 11pOIl~:~~~œ~~, . ' Did~ Tn~~1nr1eTnriffies ædhoIdsMCCF·hJlTTTl1ef:s from any and-sI1.jcJ.aimS res1ùting from claiins by Deve1o¡)iÎ1eJit toaD, OOIrowers' and c1Bims,of its employees. , ,,' , , ' . ' - , .' À.Bsi~drt~d' Stìb~g. Instituœ ~ SubcoDtraCtm;engage others to:PerrÒrm~ Ofits duties and ,obliganons. inc1111'1mt :fund rnsm$!~1".I1t rerviœs; howèver, SI1Ch duties and obligations - shall remaÏn 'the, responsibility, ofInstitote. , S'DMMARYOF PAltTIClPATIONAGREEM:EN'Í' . -,~ Participåtion,~' In order for an Offeree to become a Meníber and participa1e iD. the LOan Ftwd, an Offeiee ,is required to' êxecnte 'and deliver to MCCF a participation Agreement in the fOTJD. of Exhibit It IItt!:Irml"il totbis PIospectns.- - ê"' : EachOfferee'~~Participation'~ shall. upon acceptBDCe 'by1beBoardmDirectois and d...tapOSit in the LOan Fund of th,e amoUIÌ1 s& fOrth in thè p8rticipatlon A~become a Member of MCCF., "The - Participation Agreement provides for three levels of participation ~g upóh the amount m: COIIIriburion to tlìe -- Loan.Fund.: - The -mimrnnmparticipation is _ $25,000 and the m2XiinmIl participation is $250,000. See "MeIDberslûpf'i· ' , - " ~ - Rdnnd or Contribution - - -, .- -, ,- AMembeÌ'shall receive a reiin:ld oftbeir depôSit ba1an.ce in the Loan Fund upon 30 days' advance written notice to MCCF 'and the Escrow AgeD1 spo-..ci.fying the amount ,of refimd that tbe Member wishes' to ieceive. 'This notice may bè given at any;timeafier the tbird anniversaxy date ~f the first deposiito the LoaD. F11I1d.made by the Memrer. See "Members1dp" and',"'LoànFundEscrowAgreem,~ SJiriirimÿ'; " ' .". . . ' Origination of Loâíls . - . . Members are entitled to originate Development Loans up to ten times the amCJDDt of their dèpoSÌt b~ in the Loan Fund or coII1nDution to MCCF.' Developm..."1l1 Loans originated by Members are subject to approval by the MCCF LoanCo~~~, which consists of five ~ns(appoiDted by the Board of Directors) who are to have experience in,reV:i.ewiD.g business aridlor housing loans. TIie Committee will meet 'on an as needed basis in order to expedite the loan review process and,will have :final responsibility and final, authori.t1' for approving. denying or , modifying the loan temJ.s and conditiODS. , " , . In the event the Loan Purcbaser requires a credit reserve cL'"!>oSÌt as secwi.ty for'the Developmerit Loan, and/or the saleprìceoftheDeyelopment Loani1;discoun1edfrom par'Wlue{the principal amount of the loan), the origimmng MeII1ber "WÎll be required to fund the credit reserve arid the discomrted a..m.ouDt- sée '"Business Plan - Loan Originatitm and Qosing E>:p:nses". The orizimmnf MemOOr- will be informed of the existenœ of a reS..."'IVe requi.rem...'"Il1 and a d.i.scoun1 prior, to the Member's' cornrnÍfTn~ to, the l~,and the Member xmry decline to proceed. LOAN PURCHASERAGREEM:Er\7S MCCF Vr'ill receive an advance commhm..."D! agreement and loanpnrcbaseag:reement from 1he Loan Puxchaser with Tesp"'......'1: to thepmêh.ase of all D~opmeIIt LoaDs made from the Loan Fund.. The loan agreement will œ on a non- recourse basîs., MCCF intfmd~ tC>enteriDto agreement With Commnnify Reinvestment Fund ("CRF'), a secondary m..ark:èt economic developmeD11oan buyer to serve as a Loan :Purchas=r. 14 é1B . " .. . , . . , , . ~ ".'<", (ü) (iv) That the Member Funds advanced by the Escrow, Agent to tire '1itÌe company or , authorized closing a$etlÍ ofMCCf will DOt be irrevocablyådVancedby MCCF to fimd the Development Loan until MCCFbascOn:fiririOOWiththeEscròwÀgent that Escrow Agent bas received a wire tTm1d'eT from the Loan Purchaser in an amount equal to the sale price of the DevelopDlèDt Loan. 15 C19 . , ,,~'Ågentsban. upon: 30 days' ~written'directicm givento MCCF aIlclEScrow'Agentbj,a. . -, -~;reqU.ëSting munc1òfMëmberFuimS,paytq ,~ Member fromtheLoari Fund an or any . . ætliåIJ·oft¥,~~~ofth~.~ in.theLoan)~undm ~.With the request by $c Member., ,. . fC:, " " . , . , ' -, . , , .·To~MqcF WÎtb.~repórtsaíul~wi1iimnijWrepOm. , ' . - \ -. . comuCTS OF J:N'rEREST . . NorthlaÎlLf~rtê', has ènìerØ ¡~I!t1:B. ~ and' SeIViœ:A~ wtthMccF ·and.,thé·Cmd 'EXeàrtÎ\1e Officer ofN'orth1ån1l Iri.sti1nte,~~?lSo sërveSc as ,the 1vt~~jChief .·ExeoiItive·Officer of MCCF. ·"Mr. Mm1ùi ~adn1yonOyahytoJ)otÏiQ1'bmi'nItÎrms. In the eventofä COOIfiict; itwi1ibe1DC!11T1'I"=nt ÇGÍI.'Mr: Màrtfn to 'bring·siJcli .conflict tò the ~OIi of i:b.e rèspecnve Bòaros of D1rectors,of tl:1e párties.-: 'Tbemanàgement and" service agreement.is 'b'-...Iieved to be as :fair and equitable as to both MCCF andNorthlan.dm~e and tbe com.pe.nsationpayable pµrsuantto the agreem.eni Þ"...1ieved 10 approxima1ethat which wonld be payable 10.1JIl1'elate4 thirdpartieSforsimi1aiserviœs.. ',.. , <,! .' . ' INDEMNí:FICATION , Limitation.of DirectÔr liability amdmdèrmiifiCåtion 'Th6MinnesÒtá. Bu,sïriessCo~m1i~ ACt' ~ 'that 'MCCFiDdP-inriifY any director) offiœr·oi ~oYee 1Dade.'Or t1u:eatenédtobe m8deâ,pm:1:y'tQ_¡Ü)t~i;,g,by m¡son:ofthe fo:rmer Or pres.."'Ilt official capacity~ofthep::rsoD" against judgments.' pemù1ieS, fiIi~ SbttleI11.e:DiS and reasonable e.xp=nses incurred in connectiÕD whb. the ~g . if certain statutory standards are met. "Proceedings" means a threatened, pe:nding, or c:om.Pl~ civil,crimiIia1,' admini.st:rarlv.aIbi1rati.on orinvestiga:tive pJ:C)N'MiiT1£.including a derlva:ê:ve action in. the .~' of MCCF. ,Ref~Ï1œiS,in:aJie to thè detailed, terms of the ~ tnðf'mmiii~tjon stánite (MinD... Staí:..§302A.521) for a coxi1p1ete,s1Ì¡tP.TTIffitt ofsucb. ;nðfm'lnffi~n:n. right. Theby1a'wJ; of MCCF also require MCCF to provide ;nc1emTmi~tiCin totbefullest f:xtent oftbeM3.m:iesota TT)ñfm'lnffi=tion S1B1ute. " , . BOW TO PARTICIPATE . ___. 0··0._-. ,-_ _.'. ". . 0 . ~ _ - . . "." . _ " Offerees who, WiSh tò p2rtícipate4n 1hisParticipafion shouldcomp1.ere aDd sign the forms of "SignatÜre-page to ' ,P8rticipation Agreemenf' and "Signature Page to Loan Ftmd Escrow Agreement" which are de1ivCred to the Offeree with thiB Prospectus. The completed Signature I1me to Participa:lion Agreement and Signaìure Page to Loan Fund Escrow Agreemem, together with a œrti:f1ed CÌieck. bank money order,OÌ" otber goOd funds payable to "Wells Fargo BaDkMinnesoía, N.^, Escrow Agent MCCFLóan Fund" -sbonldœ delivered to the Minnesota Community Capital Fund at, îts1?usiness address~ætforthin 1bis ProspeCtns~ &:e "'Ad.dì.t:iona1lnform.a:ijon". Dp~ acceptance and. the occmrence of the conclliions preœ-ðent asset forth in this Prospxtns,the InitW. Closing will occur aridfollowmgtlie Initial CloSing:- the Memb:r will receive a copy of the Participation Agreement and Loan Fund Escrow Agreement that has been fully signed: ADDmONAL INFORMATION - . - - . Offereesm-e iIÍvited to' ~questiom m1d receive answers cOn~£'; the terms and conditions of this Participation ' ¡mdto obtain any additional ÌDfDImarion that is necessary to V""...rify the accuracy of the infbnnation contained in. this Prospec1l1S. Please direct all requests to Scott Martin, Chi.efE~-u:tive Ofñcer ofMCCF, at the business offices of MCCF: ,. - .. 1Vñnnesota Community Capital Fnnd 13911 RidgedaleDrive, su±œ 260 :Minneapolis, MN 55305 952-541-%74 (phone) 952-541-%84 (fax) emai1: info@mncommunitycap1t~lfm¡ñ org 16 IOU ExhibitF '" . . MCCF LOAN CJHTEiUA- eFiÑ~CING POLICIES -. ',:!_ :.~-' ',1 : ~) ::.. ~>;. ":i. f.:2;::!;'2-::~~~:;Ùß~-':.~_J~· , Lôâ.n:.A.ÎDounts: " ~~£I~î.~" . .. -, . --- - . - . . . - -~., -- -. Êli!iibí:èf»ffi.~:?- ":tel ç;,: , , '. Fffi1.df;d.prc)ject.D1USt he withip a I):leJDber;sareaof operations. _~J),;,;~,jE';. ",';;,',:'i'-j_,Ji;";,,-/;,~,,, , ,.', ,'-;I}()~oW~,~ä}Tb~~Î(,){7P[()~~'b]il~~~~,~l11.iI)i?~on-prg11teµtity. coop~1ive.or local, Unit "':':t,,~;;~:~i~;,~;:~~~~i~,~:::¥',*' "'~:: , . . '.'-, ,- -',' .:' . - ÁlìõwãÌ)1ê,'{fseofÊrotêêdš:~0 - · MCCF finafi~ing' assisianc¢ may include; but is not limited to:' fixecPaS~ëts,:'m61ttt1.i1'Ìg lan,4 8I1.(1 b~dlngpUrchase. ,bui1dÏI1g;cons~qtion" lëaseþold impIovèIIl~t$, and :::"'¡r...~~~~~-~~~ . '1Be1" "Ïîf'ifJ' t Ptêed . c)< "-',I$.'eJ stH)"rO .' '. sr.i . .'.- - c. . '. _ ~.\ -". "' O~_~ .;;:. --'-~-\~;}:;';-'~<:il-i:if[({jJ_1-- - -;_:i:¡·~?·nI'?:~ -\'&':'~~; t - :.'-..;¿....."... . Spettilarive real estate developmentsl" , - . Purèhase -of equity posÍ'lionB in business eií~erpñses.. - - InteresfRates: '~:~'h Adjtistâblë"'á1).d;~Ðxêtt!:,táf~,~ilöân:Sâî~ "åV'åil.ablêi w1thl~tes''''dêterminê:d'!by; th¢MCCF , member originating the loan. . Loan Term Len~h: .' . "Tne;ïer:grpf;,each4oan,wùl",?e d~t~ÍTI1~~¢d3-;~n>EC câs¢4by--ca.s!' nåSiB,. wiili,'?the'piimäry '.fact0r;ljeing/ tÎ1~..cø118Íer~'Gifê¡7ed~'}~~s:~ec1by,r~â.l'.estâtewi11·~enerâ11Yn~t.-ëxceed '··',2{i' Y~o$, aÌ1dlo~;$e~â'Ì'yr'lIlachìriéI;r'~and,,~qbiproent,will;genêr8J1ysûppiort;a . loan '.¡,·;eIlIr,of tip .îQ..l;O;~~S~llott~"-,:xceedtheJde;preciate&life·Df the asset ~ei~g;jin8J1ced. _:L~~~posStDle" the MCOF.loåni,;~;:coincide-withthe.;;;er:rnfor the,panicipatí11g bank 10alJ., including any balloon maturity provisions. Fees and Char!!es: '. A,L75%Joap.·øriginationfee,wìJlhe charged to all MOCFboITowers. . This fee will 'be ,assessed onlyÆórapprovedloaDs.Dut must be paid at or prior tCf'loanclosing. . Borrowers are responsible fOf':payingall legal and o1;herAoan closing' costsmcur:red by MCCF. .. \0 \ , - . .- :., ~-:..- , , ., ,. . '--~ CREDfÏ"cRrI'ER1Á , .. . Eauitv or Cash Reauirements:' . Loan applicants must demonstrate an acceptable level of project equity, ~ a minimum of 10% equity provided by the borrower. Subordinated debtwithiIi the same -project financíngmay be considered as additional equity~ 'subject to an in~ercreditQragreement. All other criteria 'Will apply, including subordinate debt; when ca1cu1ating debt coverage. ' CollateraJ Reauirements: . -. , '. Loan collateral cOverage ~st be at least 100% of the MCCF loan amount on appraised value of assets, less all senior debt. .'. . , · 'MCCF will consider the following collateral positions: first security interest; shared first security interest, subordlnated security interest and shared su~ordinated security interest. Debt to Worth: , , '. ,MCCF will, considerfu1ancing projects that háve a tangl"ble net :W9rth ratio on 'an actual andproforInà' basis of no greater than 10 to 1 (10% project equity prgreater). Each . "project shall be a.na1yzed on its, own merits. and Ìts~ility to service bbth existing and new debt. ' . . MCCF borrowers (real eState holding companies excluded) should have a tangible net . worth ,of 5, to lor, le?s, based upon their most recent financiaJ statementsh~~,.on a proforma basis, reflecting the new propOsed debt. - - -' - - ·Personal Guarantees: , , . Personal guarantees will be -required for allown($ with 2Q% ot greater ownership in closely held businesses: ' Mana2'ement Eroerience & Comnanv Performance: . TI1e MCCF'Will r-equire that the project have capable, skilled management through , experience or expertise in ,the . applicant' s industry, either through previous 'successful bÙsÏ.nessO'wnersmp or through appropœte m~nBgerial support services. Borrowers ' . , having erratic· or undocumented earnings, or ·borrowers having ·new and unproven management,"Wi11req~ire more loan risk sharing, by' the MCCF member originating the loan. Reuavment Abilitv: . Applicants must demonstrate adeq,uate bistoricaJ cash flow showing. trends that support debt service coverage of at least 1.1 to 1. Proforma Íinancial cash flows must also support debt service coverage of at least one to one. . 2 to 2-- ... if!! ,oj .$t·,Jpseplí . - C1.ERKI ADMÌNIs'rR.\roJi JUdyWeyrens ëO,:, MAYQR Ï.ärry J. Hosch JOI.1NC!L:()P~. Bob Loso Cóiy Ehlert Kyle Schneider Business Prospects have beenidentitÎed by a project numbe(ioprotectt~ë 6åriflderitiållfy of the, Allin RasSier businesses. ' . .' '. , Project 01..K This cDmpany had been IDDking fDr apprDximately 2,000 square feet of cDmmercial/industrial space for the past several months and had'lDoked a1, a number Df existtng buildings in St. Joseph asweR:as invesíigaíed new construction. ~Òh'Jurie4th thècompany rep6i1:ed they fDund a 1925 brick bUildingih:HDldingford, MN. '> 103 . Project 01-N: ,. This commercial business is considering the construction of a 2,800 square foot facility inSt. JosephJnot in the St.Joseph Business Park). Follow-Üp calls were placed to the company on May 21 and 30th. On May 21st the company representative indicated they had made an "Offer on a building in St. 'Cloud but the sale fell through so they ,are again.sonsidering various options including a,new facilityin St.Joseph. The company also contèdtéd S.E.H. regarding potential assessments rot a 4-acre site. - Proji!ct 01..0: .... ." ' " , .. .',. . . Thiš,:eompany wås proposing s:30,ODO sq: fCbuildirig within St. Joseph Business Park. The project was,. placed on hoJ,cI in February,,' MD,G placec;l,a follow up call on June 4,' 2002. The company is, temporarily out~sourc1ngpart.of their fabriCation 'process and will consider potential real estate acquisition and building ,construction in ß-12months. Þroject02"C: ..,e. " . , " This ,company contacted the city 1n January regårdihg poteritialsitesfora ,5,000 sgy,fóot manufactunngbuilding andposslb$ financial assistance programs. MDG· conj;~' the company on Ma~ 7, 2002, met with three representatives on May 10, 2002 and placedi'5l1ow-up calIs on May 17 and June 4~. . , , , . Project 02-E This commercial business is looking to expand in City of Sl Joseph. They are looking for small amgunt 'of acreage for the construction ofa 5,000 square foot facility or the possiblé pLJrchase .and renovation of the former Tom Thumb buildiOg. -MDG þlaceda follow-up ;call to the company on Máy 21, 20D2, Project02;.Q., . ., '. .... ,'. ' .,..' . This company contacted the city on March 13th requesting iriformat¡onfo~ a ,possible project in st Joseph Township. They inquired about anDexation and utility extensions. MDGspoke with company representatives regarding thJisPublic improvement hearing, assessments, and - annexation process on May 7tfi, ,17th and 21 , _., "_,' _' . - Project02-H " This developer contacted MDG on April 2nd and inquired about the Tom Thumb building as well' as other commercial sites which maybe available for development. MDG folJowedup with the company onMay 21st., They indicated they purchased the Tom Thumb building and have plans for exterior improvements and interior, as needed. .They are interested in leasing the space to interestêd buìsnesses. ".,.." .. Project02..J ,', , , ~'¡ / This business inquired about the availability of approximately 1,500-2,-000 squåre fest for light .industrial purposes on- April 9th. The business is currently located in the community in a 800 square foot space and is in need of additional room for expansion. MDG fo1l0wed up and left a message on June 4, 2002. Project 02"K This company contacted the city in April and requested demographic information for a professional office/business: MDGsent population, household and income statistics in April and followed up May 21, 2002 with a cè:l'l and June4th with the mailing of additional census data. Project 02..L , This company contacted the city April 29th regarding potêntial space for the construction of a 5,000-6,000 square foot office/warehouse and officeiacility. MDG Followed up with the company on May 2nd, 2151, 30th and June 4th. The company may be interested in constructing a quality, multi-tenant building in St. Joseph business park. Two potential tenants were referred /OY .J .... to the company by MDG. The company has their architect Working on bUilding plans for a 4- . acreparèeí in the park. C " ,PrQJectD2,,1\'I.,> ....,'. ',.. ,.... .'.. '. .', ..,.... .. ...., '.' .,.' .. ....' 1ñê buili¡Jer fQrthec()rnpanYGontªcte~tI1ecîf.y onM~Y4ndt~£lardin!¡LPótential, §ites., MDG contacteêl.'the còmpanyand é1lTanèec:! ~m~ting QnMayStl\WhiohwEÌsreschéâulei:! atthe r~!1u.esto.fth~~C!p1p~nYÆorl11id~Jurie. TJ1eçompan¥ipdj~teQtl1eY'1IV~uldneed~;12\OO() , squareJoóf.bulldmg"W1thrpom onthesltefor~xpans,on,Qn May 21·.MDGmalled the , cÔlT!par¡ya paèketWithrnaps Qf.thecity ariq St. Joseph Business Park, lot prices Slid assessment$, C()Veíiah~, zoning·règlJlations. etc; proJeêf02..N . , '. ' This GOrnpahycqntacted the city, in Aprtìreg$rçIinQ pos$ipJe highvvaycornrnerçiâ/.sites. MDG f()JI()~ed,gpiriAprilanQófÌ May 21,st, ,The Ç(:>mpany cl;lrreptb~ tlas.offic-e§.ìn Alexandria é1nd ,Fre~~¡~f~~~¡~t~~¥;lŒf ' .' J ;,ljjj{I;;i.~~i<> :i;;t¡'f)ilft;~'!:~,.;·'·~'~ft,i,"~:'{{ Projèc:'H)2..0 , .' This company contac;fed the city on . f\I1é1ySthé10d r~quest$d more informaìitmon Sf.' Jos$ph , Bu~{nessPªrk ànd tHe city. They are cønsidering a20,OOP square fooUaciJitý(16,OOO sq. ft. manufacturing, 4,000 sq, ft. office) They currently ,employ 33 p~rsons, They woulci like 4..6. . acres, Thecom,pany inquiredaboutavailaþJe$ites anei ñnë!ncié31 programs. MpG met with the, cQrnpany onMaY6.ti\.TraT1~pDliatjon accesf:¡ë!ndtheabilityto expanQ to SO,OOOsqL1are fest on th~sit¢are needëd. .MDG, discussed the existin¡;¡ Vicwesìbuilding, St. Joseph Business Patk; financial programs, cbvenants and zoning. MDG placed foJlow"up càlJs on May 17th. 21 st and J4ne 4th. ' PrDject 02..P Th'i.scofDþany is currently locClted . in the cqmmunity and is currently ouf-growingits facility. . .MPG contacted thecoinpariY on May 21st. They are currently leasing and indicated they had iGor.1$idered. reloCé1ting t9 Avon.. They need at least 4,500 sq. feet of office sPéilce; The compan~ rs,presentatjve will notify the board of the ~DA's interest in retaining them in the communitY and ,asSistance ÎIl identifyir>'g potential sites. - '_ - _ Project 02·Q: This individual contacted the city r~garding thè availability of one-acre parcels in the St. Joseph Business Park, on May 21st.. MDGsuggested he contact Project o2..L regarding the multi- tenant building. MDG folloWed up on June 4th and the twò have been in contact. Other: MDG contacted owners of various sites within the community that the EDÀ had identified for potential redevelQpment MDG has started: the comprehensive planning process, Interviews with approximately 10' organIzationslrepresentatives have been completed and chapters 1-3 have been reviewed with, the Planning Oommission. - )05 ~ ..... . :"'..-...:. . , . , .. . :" ~... . .'." - -. . .... - . . - - . - . .. " . ' THIS PAGEINTENTIONALL Y LEFT BLANK:·' - -j. ~ -- '. - - \blo