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HomeMy WebLinkAboutEDA MIN 08-03-15 ECONOMIC DEVELOPMENT AUTHORITY (EDA) MINUTES OF THE MEETING OF AUGUST 3, 2015 IN CONFERENCE ROOM 1 The meeting was called to order at 6:30 pm by Chair Peterson. Members Present: Bruce Nawrocki, Donna Schmitt, Gary Peterson, John Murzyn, Marlaine Szurek, Gerry Herringer, and Bobby Williams (arrived at 6:35 pm). Staff Present: Walt Fehst, Joseph Hogeboom, Loren Wickham, Joe Kloiber, and Shelley Hanson. PLEDGE OF ALLEGIANCE- RECITED 1.CONSENT ITEMS 1.Approve the Minutes from June 1, 2015 . 2.Approve the Financial Report and Payment of Bills for May and June 2015 on Resolution 2015-13. Questions by Members: There were no questions. Motion by Szurek, seconded by Schmitt, to waive the reading of Resolution 2015-13, there being an ample amount of copies available to the public. All ayes. MOTION PASSED. Motion by Szurek, seconded by Schmitt, to approve the consent agenda as presented. All ayes. MOTION PASSED. EDA RESOLUTION 2015-13 RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) APPROVING THE FINANCIAL STATEMENTS FOR MAY AND JUNE 2015 AND PAYMENT OF BILLS FOR THE MONTHS OF MAY AND JUNE 2015. WHEREAS, the Columbia Heights Economic Development Authority (EDA) is required by Minnesota Statutes Section 469.096, Subd. 9, to prepare a detailed financial statement which shows all receipts and disbursements, their nature, the money on hand, the purposes to which the money on hand is to be applied, the EDA's credits and assets and its outstanding liabilities; and WHEREAS, said Statute also requires the EDA to examine the statement and treasurer's vouchers or bills and if correct, to approve them by resolution and enter the resolution in its records; and WHEREAS, the financial statement for the months of May and June 2015 has been reviewed by the EDA Commission; and EDA Minutes Page 2 August 3, 2015 WHEREAS, the EDA has examined the financial statements and finds them to be acceptable as to both form and accuracy; and WHEREAS, the EDA Commission has other means to verify the intent of Section 469.096, Subd. 9, including but not limited to Comprehensive Annual Financial Reports, Annual City approved Budgets, Audits and similar documentation; and WHEREAS, financials statements are held by the City’s Finance Department in a method outlined by the State of Minnesota’s Records Retention Schedule, NOW, THEREFORE BE IT RESOLVED by the Board of Commissioners of the Columbia Heights Economic Development Authority that it has examined the referenced financial statements including the check history, and they are found to be correct, as to form and content; and BE IT FURTHER RESOLVED the financial statements are acknowledged and received and the check history as presented in writing is approved for payment out of proper funds; and BE IT FURTHER RESOLVED this resolution is made a part of the permanent records of the Columbia Heights Economic Development Authority. Passed this 3rd day of August, 2015 MOTION BY: Szurek SECONDED BY: Schmitt AYES: All ayes PUBLIC HEARING 1.Consideration of Sale of 4631 Pierce Street NE Wickham reminded members that Home Detail approached the City last spring about purchasing the EDA owned lot at 4631 Pierce St. NE. A public hearing must be held before property can be sold. The 2015 Estimated Market Value is $50,600 according to Anoka County property records. Earlier this year we were considering adding this lot into our Scattered Site Program and listing it at $25,000. The EDA should establish a price to sell the lot for and if the current interested party doesn’t accept it we should market and sell the lot to another contractor/individual. The resolution prepared for you doesn’t specify a specific buyer. Staff recommends approving to sell 4631 Pierce Street NE and entering into a purchase and redevelopment agreement with a buyer to construct an owner occupied single family house. EDA Minutes Page 3 August 3, 2015 Jeff Magdik from Home Detail submitted a letter to the Commission detailing his opinion regarding this lot. He stated that he has obtained bids for the retaining wall that affects his offer. He believes the wall needs to be completely removed and replaced and the bids he received for that work came in between $21,000 and $27,000. He would still like to purchase the lot for $7,500 which is the price being paid for the lots in the scattered site program. After some discussion, he said he would be willing to pay up to $15,000 for the lot. Questions/comments from members: Hogeboom told members that of the remaining lots, this is one of the better lots. It is larger and a new house on it would complete that block. He went on to tell members that we have a lot of interest in the vacant lots that the City owns, and that staff will be bringing a proposal to put them on the market at the September meeting. Staff will prepare a list, recommend a listing price and put them up for sale on MLS once the Commission considers the recommendation. Hogeboom stated there is a list of at least 8 other builders who want to purchase the lots, so he told members it may be the best interest of the EDA to establish the prices and put them up for sale rather than accepting a decidedly lowball offer. He told members that he had met with Crystal staff regarding their program and gave a brief overview of how successful they have been at selling their lots now that the market has improved and there are numerous interested builders. Peterson asked Magdik about his plans for the retaining wall. He stated he would like to see the lot sold and a new house constructed sooner rather than later. Schmitt stated that because we have sold numerous lots in the $7,500-$10,000 range, she believes $15,000 would be a fair price. She said the EDA’s goal is to get them developed, not necessarily to make money in the process. Nawrocki stated that the County Assessor has a value of $50,600 and we should use that as a guide for the selling price. He said if land values are too high for this property than maybe they need to be adjusted throughout the City. Herringer asked Magdik what other lots he was wanting to purchase. He replied he has interested parties who want the two Polk Street lots. Herringer asked him how much he paid for the Fridley lots along University Avenue. Magdik said he paid between $25,000-$30,000 for each of them. EDA Minutes Page 4 August 3, 2015 Hogeboom reminded members that we can’t necessarily get locked into the mindset of having to sell the remaining lots for $7,500 which was the price for the scattered site lots as that was a special program designed to generate interest during a down time in the economy. He said the program was successful as we only have two lots remaining and that Timbercraft will be constructing a model home on the Reservoir lot which should sell quickly. Public Hearing Opened. The only one present to speak on this issue was Magdik from Home Detail. He again expressed his desire to purchase the lot for $7,500-$15,000 and made it clear that he felt the City should accept his offer. Public Hearing Closed. Motion by Nawrocki, to establish a price of $50,600 for 4631 Pierce Street, based on the estimated market value set by Anoka County. The motion died due to a lack of a second. Motion by Herringer, seconded by Szurek to establish a price of $20,000 for the sale of this lot to Home Detail. Motion by Nawrocki to amend the motion to raise the price to $25,000. Again this amendment failed due to a lack of a second. There was some discussion that followed regarding a time frame that this offer from the City would be valid. To clarify things after the discussion a new motion was made. Motion by Herringer, seconded by Szurek to establish a price of $20,000 for the sale of 4631 Pierce Street to Home Detail. This price will be valid for 15 days if he wishes to accept the set price. If not, the property will be added to the list that will be considered at the September meeting prior to being listed with the MLS. Roll Call Vote: Ayes-Szurek, Schmitt, Murzyn, Herringer, Williams, and Peterson. Nays-Nawrocki. Nawrocki went on record that he opposes this price as it is less than half of the County’s Estimated Market Value and he feels it is much too low. MOTION PASSED. Herringer stated that if the offer is not accepted within the 15 day time period, he does not feel the Commission should entertain any more negotiations with Home Detail. EDA Minutes Page 5 August 3, 2015 Motion by Herringer, seconded by Szurek, to waive the reading of Resolution 2015-14, there being ample copies available to the public. All ayes. MOTION PASSED. Motion by Herringer, seconded by Szurek, to adopt Resolution 2015-14, approving the sale of land and the Purchase and Redevelopment Agreement between the Columbia Heights Economic Development Authority and the Buyer. Ayes-Szurek, Schmitt, Murzyn, Herringer, Williams, and Peterson. Nays-Nawrocki MOTION PASSED. COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2015-14 RESOLUTION APPROVING THE SALE OF LAND AND PURCHASE AND REDEVELOPMENT AGREEMENT BETWEEN THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY AND BUYER BE IT RESOLVED By the Board of Commissioners ("Board") of the Columbia Heights Economic Development Authority ("Authority") as follows: Section 1. Recitals. 1.01. The Authority has determined a need to exercise the powers of a housing and redevelopment authority, pursuant to Minnesota Statutes, Sections. 469.090 to 469.108 ("EDA Act"). 1.02. The Authority and purchaser (the “Redeveloper") have proposed to enter into a PURCHASE AND REDEVELOPMENT AGREEMENT (the “Contract”), setting forth the terms and conditions of sale and redevelopment of certain property owned by the Authority located at 4631 Pierce Street NE and described as LOT 4, BLK 1, PARKVIEW TERRACE to Columbia Heights, Anoka County, Minnesota (the “Redevelopment Property”). 1.03. Pursuant to the Contract, the Redeveloper will acquire the Redevelopment Property and construct an owner occupied single family house, subject to the City’s zoning and building codes. 1.04. The activities of the Authority under the Contract implement housing goals of the City’s Comprehensive Plan: “Promote and preserve the single-family housing stock as the community’s strongest asset.” and “Provide a variety of life-cycle housing opportunities within the community.” 1.05. The Board has reviewed the Contract and finds that the execution thereof and performance of the Authority's obligations thereunder further the goals of the Comprehensive Plan and are in the best interests of the City and its residents. EDA Minutes Page 6 August 3, 2015 Section 2. Authority Approval; Further Proceedings. 2.01. The Contract as presented to the Board, including the sale of the Redevelopment Property described therein, is hereby in all respects approved, subject to modifications that do not alter the substance of the transaction and that are approved by the President and Executive Director, provided that execution of the documents by such officials shall be conclusive evidence of approval. 2.02. The President and Executive Director are hereby authorized to execute on behalf of the Authority the Contract and any documents referenced therein requiring execution by the Authority, and to carry out, on behalf of the Authority its obligations thereunder. 2.03. Authority and City staff are authorized and directed to take all actions to implement the Contract. Approved by the Board of Commissioners of the Columbia Heights Economic Development Authority this 3rd day of August, 2015. A sample Purchase & Redevelopment Agreement and Quit Claim Deed were enclosed in the agenda packets for the members to review which would be executed by the EDA and the buyer. BUSINESS ITEMS 1.Resolution 2015-15 HRA Levy Budget 2.Resolution 2015-16 EDA Levy Budget Hogeboom provided members with the 2016 budget for all of the Community Development Department (EDA and Planning & Inspections). Although some of the Department’s budget (Fund 201) is not controlled by the EDA, the EDA has historically reviewed and approved the entire Community Development Department budget. The budget is ultimately approved by the City Council. The EDA portion of the budget is “Fund 204”, and the attached resolutions serve as a recommendation to the City Council for levying both an EDA and a HRA levy. The Department’s operating budget is relatively straightforward due to the size of the department. Hogeboom explained that the 2016 budget includes an overall increase in EDA expenses due to a reallocation of the way in which salary expenses are charged between Fund 201 and Fund 204. The Associate Planner position is no longer recognized in fund 204, while 90% of the Assistant Director position is recognized in Fund 204, 80% of the director position is recognized in Fund 204, and 10% of the Secretary II – Permits and Licensing position is recognized in Fund 204. This reallocation was made to reflect more accurately staff’s time spent in the two different areas of the department. EDA Minutes Page 7 August 3, 2015 Revenue is expected to increase in the EDA fund due to levy increases based on market value. Revenue is expected to increase in the Planning & Inspections fund due to anticipated increased permit, license and fee income. The complete Community Development Department budget will be distributed to the City Council later in 2015. Staff recommends approval of the Levies as presented. Questions from members: Joe Kloiber, Finance Director, was present to answer questions. He explained the history behind having two budgets for the EDA and HRA. Kloiber reviewed the figures with the members. He said the HRA levy is set at a percentage of the market values. Due to property values dropping every year since 2008, the amount of the levy also decreased each year. It has recovered some for 2016 as market values have now increased once again. Nawrocki said the HRA levy should be lower since we will no longer be responsible for managing Parkview Villa, and as a result, staff should be cut to lower expenses. Hogeboom said staff will still be doing administrative work after the closing for a year or more. There will be outstanding bills to pay, reports to be done for HUD, and closing of various files to meet legal obligations. Nawrocki then asked about line item 6999 and why the amount increased so drastically. Kloiber explained that is an internal transfer between funds to cover the reallocation of staff funding. Schmitt asked if the HRA and EDA can be combined. She also asked where the proceeds from the sale will go after closing. Kloiber told members that the proceeds will go into the established funds for PVVN and PVVS for the time being. He also explained that the HRA will have to remain in existence since the loan payment will be made to the HRA at the end of 30 years. The possibility of combining the HRA with the EDA is being researched by the Attorneys. Motion by Williams, seconded by Schmitt, to waive the reading of Resolutions 2015-15 and 2015- 16, there being ample copies available to the public. All ayes. MOTION PASSED. Motion by Williams, seconded by Schmitt, to approve Resolution 2015-15, Resolution Authorizing the Levy of a Special Benefit Levy pursuant to Minnesota Statutes, Section 469.033, Subdivision 6 and Approval of a Budget for Fiscal year 2016. Ayes-Szurek, Schmitt, Murzyn, Williams, Herringer, Peterson. Nays-Nawrocki MOTION PASSED. Nawrocki stated he is voting against the motion because he feels the expenses should be reduced for the department budgets due to the sale of Parkview Villa. EDA Minutes Page 8 August 3, 2015 Motion by Williams, seconded by Schmitt, to approve Resolution 2015-16, Resolution of the Economic Development Authority (EDA) in and for Columbia Heights Adopting the 2016 budget and setting the EDA Levy. Ayes-Szurek, Schmitt, Murzyn, Herringer, Williams, and Peterson. Nay- Nawrocki. MOTION PASSED. COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2015-15 AUTHORIZING THE LEVY OF A SPECIAL BENEFIT LEVY PURSUANT TO MINNESOTA STATUTES, SECTION 469.033, SUBDIVISION 6 AND APPROVAL OF A BUDGET FOR FISCAL YEAR 2016 WHEREAS, pursuant to Minnesota Statutes, Section 469.090 to 469.1081 (“EDA Act”) the City of Columbia Heights (“City”) created the Columbia Heights Economic Development Authority (the "EDA"); and WHEREAS, pursuant to City Resolution 2001-62 and Ordinance No. 1442, the City Council granted to the EDA all powers and duties of a housing and redevelopment authority under the provisions of Minnesota Statutes, Sections 469.001 to 469.047 (the "HRA Act"), except certain powers that are allocated to the Housing and Redevelopment Authority in and for the City of Columbia Heights (the “HRA”); and WHEREAS, Section 469.033, Subdivision 6, of the HRA Act permits the EDA and HRA, together, to levy and collect a special benefit levy of up to .0185 percent of taxable market value in the City upon all taxable real property within the City; and WHEREAS, the EDA desires to levy a special benefit levy in the amount of .0185 percent of taxable market value in the City; and WHEREAS, the EDA understands that the HRA does not expect to levy a special benefit tax for fiscal year 2016; and WHEREAS, the EDA has before it for its consideration a copy of a budget for its operations for the fiscal year 2016 and the amount of the levy for collection in fiscal year 2016 shall be based on this budget. NOW, THEREFORE, Be It Resolved by the Board of Commissioners of the Columbia Heights Economic Development Authority: 1. The budget of $301,193 for the operations of the EDA presented for consideration by the Board of Commissioners of the EDA is hereby in all respects approved. Such budget includes the amount the EDA requests (by separate resolution) to be levied by the City under Minnesota Statutes, Section 469.107, together with the amount to be levied hereunder by the EDA under Minnesota Statutes, Section 469.033, subdivision 6. 2. Staff of the EDA are hereby authorized and directed to file the budget with the City in accordance with Minnesota Statutes, Section 469.033, Subdivision 6. 3. There is hereby levied, subject to the approval of the City Council of the City, a special benefit levy pursuant to Minnesota Statutes, Section 469.033, Subdivision 6, in the amount of $202,364, which is .0185 percent of the market value in the City. EDA Minutes Page 9 August 3, 2015 4. Staff of the EDA are hereby authorized and directed to seek the approval by resolution of the City Council of the City of the levy of special benefit taxes in 2016 and to take such other actions as are necessary to levy and certify such levy. Motion by: Williams Second by: Schmitt rd Motion passed this 3 day of August 2015. EDA RESOLUTION 2015-16 RESOLUTION OF THE ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR COLUMBIA HEIGHTS (EDA) ADOPTING THE 2016 BUDGET AND SETTING THE EDA LEVY. BE IT RESOLVED By the Columbia Heights Economic Development Authority (EDA) of Columbia Heights, Minnesota as follows: WHEREAS, the Columbia Heights City Council established the Columbia Heights Economic Development Authority January 8, 1996 pursuant to Minnesota Statutes 469.090 to 469.1081; and WHEREAS, the City Council has given to the EDA the responsibility for all development and redevelopment projects and programs; and WHEREAS, the EDA is authorized under State Statutes, Section 469.107 to levy a tax on its area of operation for the purposes authorized under State Statues 469.090 to 469.1081, subject to consent by the City Council. NOW, THEREFORE BE IT RESOLVED BY THE EDA FOR THE CITY OF COLUMBIA HEIGHTS, MINNESOTA THAT: 1. The EDA adopts and recommends to the City Council for approval a budget of $301,193 for year 2016. 2. The EDA adopts and recommends to the City Council for approval a levy of $84,000 for year 2016. The Executive Director is instructed to transmit a copy of this resolution to the City Manager and Finance Director/City Clerk of the City of Columbia Heights, Minnesota. rd APPROVED THIS 3 day of August 2015. MOTION BY: Williams SECONDED BY: Schmitt EDA Minutes Page 10 August 3, 2015 3. Antenna Lease Agreement Hogeboom explained that as a component of the negotiated sale of Parkview Villa North and South to Aeon Housing, the Economic Development Authority will retain revenue from the cellular antenna located on top of the building until December 31, 2027. The existing Lease of the facility is between the EDA and T-Mobile, and began in 1997. Rent commenced at $12,000 in 1997 and increased each year by the greater of either 4% of the previous year’s annualized rent, or an amount equal to the increase in the Consumer Price Index (“CPI”). The original Lease offered several renewal terms, the last of which ends on December 31, 2016. Currently we are receiving $23,372/year from the current lease terms. To maintain this income stream, it is necessary to enter into a new Lease with T-Mobile that will begin on January 1, 2017, as well as to obtain an Easement for the property from Aeon to allow access to the antenna area. The new Lease was mutually agreed upon by EDA staff, Aeon and T-Mobile, and is subject to the same terms of the existing Lease. It is necessary for the EDA to approve the Lease and Easement agreements prior to the sale of the property. Copies of both the proposed Lease and the proposed Easement were provided to members. Staff recommends approval of the motions provided them concerning the Parkview Villa Cellular Antenna Facilities Easement and Lease. Questions from members: Hogeboom stated we were able to re-negotiate the same terms with T-Mobile extending the lease from January 2017-December 2027. Nawrocki asked what type of signal is broadcast from the antenna. Hogeboom stated it is a cellular antenna for T-Mobile phones only. Nawrocki then asked what happens to the lease after 2027. Hogeboom stated it could be renewed if T-Mobile and Aeon wished to do so, but the City would no longer have any rights to it. EDA Minutes Page 11 August 3, 2015 Motion by Szurek, seconded by Williams, to authorize the President and the Executive Director of the Economic Development Authority to execute the Easement Agreement with Aeon for Parkview Villa Cellular Antenna Facilities. All ayes. MOTION PASSED. Motion by Szurek, seconded by Williams, to authorize the President and the Executive Director of the Economic Development Authority to execute the First Amendment to the Parkview Villa Site Lease Agreement with T-Mobile Central, LLC. All ayes. MOTION PASSED. EASEMENT AGREEMENT (Cellular Antenna Facilities) Agreement This Easement Agreement (this “”) is made as of this ____ day of ____________, 2015, by and between the Columbia Heights Economic Development Authority, EDA a public body corporate and politic in the State of Minnesota (the “”) and Aeon, a Owner Minnesota non-profit corporation (“”). HRA WHEREAS, the Columbia Heights Housing and Redevelopment Authority (the “”) was the owner of certain real property known as Parkview Villa North and Parkview Villa South, th located at 965 40 Avenue Northeast in Columbia Heights, Anoka County, Minnesota which is more particularly described in Exhibit A attached hereto and incorporated herein by reference Property (the “”); and WHEREAS, pursuant to that certain Site Lease Agreement dated December 4, 1996, as amended by that certain First Amendment to Site Lease Agreement dated ______, 2015, and as Lease may be further amended, restated or replaced from time to time (the “”), T-Mobile maintains directional antennas, connecting cables, equipment, cabinets, an accessory building FacilitiesPlans and appurtenances (collectively, the “”) as depicted on Exhibit C hereto (the “”) on the roof of the Parkview Villa North building; and WHEREAS, concurrently with the execution of this Agreement, the HRA has conveyed the Property to Owner; and WHEREAS, prior to such conveyance the HRA assigned the Lease to the EDA; EDA Minutes Page 12 August 3, 2015 WHEREAS, the EDA desires an easement from Owner that will allow the EDA, or its tenant under the Lease, to continue to operate, maintain, repair and reconstruct the Facilities on the roof of the Parkview Villa North building; and WHEREAS, Owner agrees to grant a certain limited-term easement as provided in this Agreement; and NOW, THEREFORE, in consideration of one dollar ($1.00), the conditions, covenants and mutual agreements hereinafter set forth, the receipt and sufficiency of which is hereby acknowledged by Owner, the parties hereto agree as follows: 1. ANTENNA EASEMENT. Owner does hereby grant and convey to the EDA, for the Term (as defined herein), a non-exclusive antenna easement over and upon the portion of the roof of the Parkview Villa North building described on the attached Exhibit B and incorporated Easement Area herein by reference (the “”) for the construction, use, operation, maintenance and repair (including reconstruction) of the Facilities, subject to all governmental rules and regulations with respect to such facilities. 2. INGRESS AND EGRESS EASEMENT. Owner also does hereby grant and convey to the EDA, for the Term, a nonexclusive ingress and egress easement over the Property in order to gain reasonable and necessary access to the Easement Area. Owner reserves the right to change or limit the location of ingress and egress easement to the Easement Area to complement its residential development activities, provided that such access shall be reasonably located and not unduly interfere with the Facility operations. The EDA may not enter any buildings on the Property. The EDA may not build on the Property other than to construct, use, operate, maintain, repair or reconstruct the Facilities as depicted on the Plans. 3. PAYMENT OF UTILITIES. Prior to the date hereof, the EDA shall separately meter charges for the compensation of electricity and other utilities associated with the Facilities and the EDA’s use of the Property and shall promptly and timely pay all costs associated herewith. 4.CONSTRUCTION, MAINTENANCE AND OPERATION. The EDA hereby represents, agrees, and warrants that the Facilities shall be constructed, used, operated, maintained, repaired and reconstructed in accordance with good construction and engineering practices and all applicable federal, state, and local laws, statutes, codes, ordinances, rules and Laws regulations (“”) including those of the Federal Communications Commission, the City of Columbia Heights and Anoka County, and all applicable federal, state, and local environmental, safety and hazardous materials laws and regulations including but not limited to CERCLA Hazardous Materials Laws (“”), and materially as depicted on the Plans. The EDA agrees to EDA Minutes Page 13 August 3, 2015 maintain, at its sole expense, the Facilities located on the Property in good condition and repair, at least equal to the standard of maintenance of the Property, and in accordance with all applicable Laws, and if any portion of the Facilities breaks, malfunctions, or is or becomes in disrepair, the EDA will promptly repair or replace the item or items including any and all damage caused by said breakdown, malfunction or disrepair at its own expense. The EDA agrees that it will not cause or permit any mechanic’s or materialmen’s liens or claims to be filed against the Property, or any part thereof. Except as depicted on the Plans, the EDA may not install any additional facilities or improvements without the prior written approval of Owner, which may be withheld in Owner’s sole discretion and may be made subject to any further requirements Owner may have, with the exception that the EDA may erect additional Facilities and install additional equipment on a temporary basis not to exceed 90 days to assure continuation of service in the event of a natural or manmade disaster in order to protect the health, welfare and safety of the community. At Owner’s request, the EDA will install or cause to be installed a “screening” surrounding the exterior of the Facilities for esthetic purposes, which shall be painted to match the building and otherwise subject to Owner’s approval. 5. HAZARDOUS MATERIALS. Except as reasonably used in the ordinary course of the operation of the Facilities, and in accordance with all applicable Laws, the EDA represents and warrants, that the use of the Easement Area and operation of the Facilities will not generate, and the EDA will not permit to be stored, disposed of, or transported to or over the Property, any Hazardous Materials Hazardous Materials. “” shall be interpreted broadly and specifically includes, without limitation, asbestos, fuel, batteries or any hazardous substance, waste or materials as defined in any Hazardous Materials Law. 6. PROPERTY MAINTENANCE; DAMAGE TO PROPERTY. Subject to Section 13 below and the EDA’s maintenance and repair obligations set forth in this Agreement, Owner shall be responsible for maintaining the building and any improvements (other than the Facilities) that are located within the Easement Area at its sole expense. Within 15 days after notification by Owner of such damage (or such lesser period of time as Owner deems necessary in the event of an emergency), the EDA will restore, at its sole expense, any damage to the Easement Area or the Property caused during or by the installation, maintenance or operation of the Facilities, including damage to any structures, pavement, landscaping or any other improvements or surface or subsurface conditions, such restoration to be made to the same condition as immediately prior to such disturbance. 7. INTERFERENCE. The EDA shall cause the Facilities to be operated such that they do not unreasonably and materially interfere with Owner’s use of the Property. If Owner finds in its reasonable discretion that the Facilities or any part thereof unreasonably and materially interferes with Owner or its tenants’ use of the Property (including but not limited to threats to public EDA Minutes Page 14 August 3, 2015 health or safety), Owner may require the EDA to cause the operation of the Facilities to be temporarily discontinued, except for intermittent operation for the purpose of testing, until the interference has been eliminated. If the operation of the Facilities is discontinued in accordance with this Section and the interference cannot be eliminated within thirty (30) days immediately thereafter, and if the parties are unable to mutually agree on an alternative location on the Property in which to relocate the Facilities in accordance with Section 10 of this Agreement, Owner may terminate this Agreement; provided consent to relocate the Facilities due to an interference under this Section may be withheld by either party in its sole discretion, and the payment for such relocation shall be as mutually agreed by the parties. If Owner determines that a cessation is necessary as a result of an emergency or threat to public health or safety, Owner may require that such cessation be accomplished immediately. 8. INDEMNITY. The EDA agrees to defend, indemnify and hold harmless Owner and its partners, officers, employees, agents and representatives from and against any and all claims, costs, losses, expenses, demands, actions, or causes of action, including reasonable attorneys’ fees and other costs and expenses of litigation arising out of the use of the Property by the EDA or its employees, agents, tenants or invitees, except to the extent that the same arise from the gross negligence or willful misconduct of Owner. The indemnity provided herein shall survive the termination of this Agreement. Owner agrees to defend, indemnify and hold harmless the EDA and its officials, employees, agents and representatives from and against any and all claims, costs, losses, expenses, demands, actions, or causes of action, including reasonable attorneys’ fees and other costs and expenses of litigation arising out of the use of the Property by Owner or its employees, agents, tenants or invitees, except to the extent that the same arise from the gross negligence or willful misconduct of the EDA. The indemnity provided herein shall survive the termination of this Agreement. 9. OWNER’S USE. Owner hereby reserves to itself the right to use the land included within the Easement Area, including but not limited to use for cellular antenna purposes (provided that any such use must not interfere with or impair the EDA’s use of the Facilities and any further lease of the Easement Area by Owner must prohibit a user from interfering with the Facilities), subject to all governmental rules and regulations, and provided that such use will not unreasonably disturb or interfere with the Facilities or prevent reasonable ingress and egress thereto for the purposes of construction, operation, use, maintenance or repair (including reconstruction) thereof. If the intended use by Owner of the Easement Area is for cellular antenna purposes, the EDA may require Owner to obtain an interference study from a professional engineer to determine if the new frequencies will cause harmful interference with the Facilities at Owner’s expense. EDA Minutes Page 15 August 3, 2015 10. RELOCATION. Owner reserves the right to require the EDA to relocate the Facilities to other portions of the Property acceptable to the EDA in its reasonable discretion. Owner agrees to pay all reasonable costs incurred by the EDA that are reasonably related to such relocation. Owner agrees to give the EDA not less than 30 days’ notice of any desired relocation. In the event of any such relocation, this Agreement shall be amended to reflect such relocation so that the EDA has an easement for the relocated Facilities under the same terms and conditions as this Agreement. 11. INSURANCE; RELEASE. The EDA agrees to maintain at all times adequate commercial general liability insurance with respect to its access rights on the Property and the Easement Area and the use and occupancy thereof (in an amount not less than $1,000,000.00 per occurrence), specifically including coverage against claims for bodily injury, death and property damage occurring on or about the Easement Area and the Property, and contractual coverage with respect to the indemnity obligations set forth in this Agreement. The current owner of the Property shall be named as an additional insured on such policy and all insurance policies required to be held by the EDA and the tenant under the Lease. The EDA shall furnish Owner with evidence of such coverage on or before the date of this Agreement, and upon request from time to time thereafter. 12. ABANDONMENT OF EASEMENT. If the EDA shall abandon or no longer use the Easement Area for a period of at least one year, then, notwithstanding any provision herein to the contrary, the Easement shall automatically terminate and the EDA shall, promptly upon request, execute a recordable instrument to evidence the termination and release of the easement and this Agreement. 13. EMINENT DOMAIN; CASUALTY. If the Easement Area or any part thereof is taken by eminent domain or conveyed in lieu of eminent domain, then this Agreement shall terminate and any award for such a taking or damages paid as a result of such taking shall be the sole and exclusive property of the owner of the property taken. Without limiting the foregoing, the EDA shall have the right to claim and recover from the condemning authority, but not from Owner, such compensation as may be separately awarded or recoverable by the EDA on account of any and all damage to the EDA’s business and any costs or expenses incurred by the EDA in moving/removing its equipment, personal property, Facilities and leasehold improvements.The EDA and Owner agree to execute any instrument of assignment as may be required by the other for the recovery of damages with respect to that party’s property. If the Easement Area is damaged by fire or other casualty (whether insured or not), Owner has no obligation hereunder to reconstruct the Easement Area or the building upon which it is located; provided, however, if Owner does perform such reconstruction, the EDA may at the EDA’s expense reconstruct the Facilities within the reconstructed Easement Area for operation for the remainder of the Term. If Owner does not reconstruct the Easement Area in its sole discretion, this Agreement shall terminate. Page 16 14. ASSIGNMENT. Except for the existing Lease, the EDA may not assign or otherwise transfer, voluntarily or involuntarily, this Agreement without Owner’s prior written consent, which may be withheld in Owner’s absolute discretion; provided, however, without the consent of Owner, the EDA may assign this Agreement to a governmental entity that succeeds to all of the EDA’s responsibilities in the County of Anoka. 15. NO DEDICATION. Nothing contained herein shall be deemed to be a dedication of any part of the Property to the general public, or for the general public or for any public purposes whatsoever. 16. NO PARTNERSHIP. None of the terms or provisions of this Agreement shall be deemed to create a partnership between or among the parties in their respective businesses or otherwise, nor shall it cause them to be considered joint venturers or members of any joint enterprise. 17. DEFAULT; REMEDIES. If a party hereto defaults under any of its obligations under this Agreement, and such default continues for 30 days after receipt of written notice from the non-defaulting party, then the non-defaulting party may exercise one or more of the following remedies: (a) Cure the default and charge the cost thereof to the defaulting party, and all such costs shall be payable on demand and shall bear interest from the date of demand until paid in full at the rate of 8% per annum; or (b) Apply for injunctive relief and/or specific performance. The 30-day cure period shall not apply (a) in the case of an emergency in which event an immediate cure shall be required, and (b) where a default is not susceptible of cure within 30 days and the defaulting party commences the performance, fulfillment or observance within the 30-day period and diligently prosecutes the same thereafter. Any action seeking one or more form of relief shall not be a bar to an action at the same or subsequent time seeking other or alternative relief. In any such action, the prevailing party shall be entitled to an award of its costs and reasonable attorneys’ fees. No delay or forbearance by a non-defaulting party shall be deemed a waiver of the subject default or any subsequent default of a similar nature, and no waiver of any right and remedy hereunder shall be effective unless in writing and signed by the person against whom the waiver is claimed. 18. NOTICES. Notices in demand required or permitted to be given hereunder shall be given by certified mail, return receipt requested, or by a national overnight express service. In the case rd of Owner, notices shall be addressed to it at 901 North 3 Street, Suite 150, Minneapolis, MN 55401, Attn: Caroline Horton, or at such other address as specified in writing by Owner. In the th case of the EDA, notices shall be addressed to it at: 590 40 Avenue Northeast, Columbia Heights, Minnesota 55421, Attn: Executive Director or at such other address specified in writing by the EDA. Page 17 19. EXHIBITS. All exhibits referred to herein and attached hereto shall be deemed part of the Agreement. 20. RECORDING. The Agreement shall be recorded in the records of Anoka County, Minnesota. 21. GOVERNING LAWS. The laws of the state of Minnesota shall apply to the Agreement. 22. SEVERABILITY. If any term, provision or condition contained in the Agreement shall, to any extent, be invalid or unenforceable, the remainder of the Agreement (or the application of such term, provision or condition to persons or circumstances other than those in respect of which it is invalid or unenforceable) shall not be affected thereby, and each term, provision or condition of the Agreement shall be valid and enforceable to the fullest extent permitted by law. 23. BINDING ON FUTURE PARTIES. The easement granted herein shall run with the land and shall inure to the benefit of and be binding upon the parties, their successors and assigns for the Term. 24. LEASE. The EDA will enforce its rights under the Lease to the fullest extent and will require the tenant to operate strictly in accordance therewith. The EDA and Owner acknowledge and agree that all of the rights made available to the EDA under the Lease shall be made available to Owner (other than the right to collect rent thereunder), that all warranties and indemnities set forth in the Lease shall inure to the benefit of Owner, and that Owner may, on its own behalf or on behalf of the EDA, enforce, directly against the tenant or any other applicable party under the Lease, all rights afforded to the EDA under the Lease. The Lease may not be amended or otherwise modified without the prior written consent of Owner. Upon termination of the Lease, if the EDA is the landlord under the Lease at the time of its termination, the EDA will cause the tenant under the Lease to execute a “Termination of Lease” in recordable form and will cause such document to be recorded in the Offices of the County Recorder and the Registrar for Anoka County, Minnesota. 25. TERM. This Agreement will terminate and be of no further force or effect, except as Termination Date otherwise provided herein, at 11:59 on December 31, 2027 (the “”). Prior to the Termination Date, unless otherwise agreed to by the parties in writing, the EDA must cause the Facilities to be removed from the Property and must restore the Property to a condition as good as or better than that which existed immediately prior to the installation of the Facilities (including the replacement of any landscaping, curbing or paving that has been removed or damaged). If this Agreement is terminated prior to the Termination Date, the EDA must cause such restoration to be completed within 60 days after such termination. [Signature pages follow] IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first above written. OWNER: AEON By: ___________________________________ Its: President and CEO ACKNOWLEDGMENTS STATE OF MINNESOTA ss.: } COUNTY OF _________ The foregoing instrument was acknowledged before me this ______ day of _______________________, 2015 by ________________, the President and CEO of Aeon, a Minnesota non-profit corporation, by and on behalf of the corporation. Notary Public EDA : COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY By: ____________________________________ Its: President By: ____________________________________ Its: Executive Director ACKNOWLEDGMENTS STATE OF MINNESOTA ss.: } COUNTY OF ANOKA The foregoing instrument was acknowledged before me this ______ day of _______________________, 2015 by _____________ and _______________, the President and Executive Director, respectively, of the Columbia Heights Economic Development Authority, a body corporate and politic in the State of Minnesota, by and on behalf of said body. Notary Public Error! Unknown document property name. Page 19 EXHIBIT A Legal Description of the Property Tract A: That part of the South 1/2 of Lot 13, lying Northwesterly of the following line: Beginning at the Northeast corner of the South 1/2 of Lot 13; thence Southwesterly to a point on the South line of said Lot 13, said point being 2 feet Easterly of the Southwest Corners of Lot 13; the South 241 feet of Lot 14; then south 1/2 of Lot 15; Lot 39 except the West 30 feet thereof; Lots 40, 41, 42 and 43 and the West 1/2 of Lot 44, all in Block 5 Reservoir Hills, Columbia Heights, Anoka County, Minnesota (Abstract) Tract B: The East 40 feet of the South 1/2 of Lot 16, Block 5, Reservoir Hills, Columbia Heights, Anoka County, Minnesota. (Torrens) FIRST AMENDMENT TO SITE LEASE AGREEMENT First Amendment THIS FIRST AMENDMENT TO SITE LEASE AGREEMENT (the "") is made this ___ day of __________, 2015 by and between Columbia Heights Economic Development Authority, a public body corporate and politic and political subdivision of the State of Minnesota, as the th lessor, whose address is 590 40 Avenue NE, Columbia Heights, MN 55421 (hereinafter referred to as Landlord ""), and T-Mobile Central LLC, a Delaware limited liability company, whose address is th 12920 SE 38 Street, Bellevue, WA 98006, as successor in interest to APT Minneapolis, Inc. Tenant (hereinafter referred to as ""). RECITALS WHEREAS, Landlord and Tenant are parties to a Site Lease Agreement, dated December 4, Lease 1996 (the “”) whereby Landlord has leased to Tenant and Tenant has leased from Landlord LeasedPremises approximately 250 square feet of rooftop space (the “ ”) on a certain building th located at 965 40 Avenue NE, Columbia Heights, Minnesota, legally described in Exhibit A Property attached hereto (the “”); Page 20 WHEREAS, the Lease provides for an Initial Term commencing on approximately January 1, 1997 and expiring December 31, 2001, with rent commencing at $12,000 for the initial year and increased each year by the greater of (i) 4% of the previous year’s annualized rent, or (ii) an amount equal to the increase in the Consumer Price Index (“CPI”), all as more fully described in paragraph 2 of the Lease, subject to three (3) Renewal Terms of five (5) years each at a rental rate for each Renewal Term consistent with the terms of the Initial Term; WHEREAS, Tenant exercised its right to extend the Initial Term of the Lease for each of the three Renewal Terms; WHEREAS, Landlord and Tenant desire to extend the Term of the Lease for an additional 11- Additional Renewal year renewal term from January 1, 2017 through December 31, 2027 (the “ Term ”); WHEREAS, Landlord and Tenant have agreed on a rental rate for such Additional Renewal Term; and WHEREAS, Landlord intends to convey fee title to the Property to Aeon (or its successor or Property Owner assign, as applicable, being hereafter referred to as “”) and will be granted a non- Easement exclusive easement (the “”) to the Leased Premises for a period equal to the Additional Renewal Term, along with certain rights of ingress and egress thereto through the Property, subject to Property Owner’s reasonable security requirements and the rights of tenants at the Property. NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, Landlord and Tenant hereby amend the Lease as follows: 1. Additional Renewal Term. The Lease is hereby extended for the Additional Renewal Term, which shall run from January 1, 2017 through December 31, 2027. 2. Additional Extensions. A. The parties acknowledge that upon the termination of the Additional Renewal Term, the Easement will expire and, as a result, Landlord will no longer have the right to occupy the Property for the purposes of providing Tenant its rights under the Lease. Accordingly, the following extension provisions are subject to the Owner Approval (as hereafter defined) and, in connection therewith, Property Owner’s consent to its replacement of Landlord as the landlord under the Lease. B. The parties further agree that Tenant shall have the option to request extensions of the Lease for two (2) additional five-year Renewal Terms commencing, respectively, on January 1, 2028 and January 1, 2033, by providing Property Owner written notice of Tenant’s Renewal Request request for renewal (the “”) at least eighteen (18) months prior to the expiration of the Additional Renewal Term or the first subsequent Renewal Term thereafter. Property Owner may approve or reject Tenant’s Renewal Request in writing within 60 days after Property Owner’s receipt of the Renewal Request for any reason or for no reason whatsoever; provided, however, any failure of Property Owner to respond to a Renewal Request shall be deemed a rejection of the Renewal Owner Request. Property Owner’s acceptance of a Renewal Request is referred to as an “ Approval .” If Property Owner does not provide its Owner Approval in response to a Renewal Request, the Lease shall terminate in accordance with the terms upon the scheduled termination of the then-current term. If a Renewal Request for the first Renewal Term is either not delivered or rejected, the second subsequent Renewal Term will be void. Page 21 3. Rent for Additional Renewal Term. The rent for the Additional Renewal Term and any subsequent Renewal Term shall continue without interruption; provided that the rent shall be increased each year on January 1 by 3% of the previous year’s annualized rent. After the termination of the Additional Renewal Term, if the Lease is extended as provided herein, rent shall be payable to Property Owner at the address provided in Section 6 below. 4. Lease of Landlord’s Interest in Easement. Landlord and Tenant agree that the Lease is a lease only of Landlord’s non-exclusive easement interest in the Leased Premises during the Additional Renewal Term. Landlord and Tenant agree that, for the Additional Renewal Term, Property Owner is a third party beneficiary under the Lease, as modified hereby, and has the right to directly enforce all of the duties and obligations of Tenant under the Lease. Upon any extension after the Additional Renewal Term, Property Owner will become the landlord under the Lease and, accordingly, a direct beneficiary, obligee, and obligor thereunder. Landlord and Tenant agree that all rights of Property Owner under this First Amendment shall inure to the benefit of its successors in title to the Property. Further, Tenant agrees that it shall name Property Owner as an additional insured under the applicable liability and casualty insurance which Tenant is required to maintain under the Lease. Landlord and Tenant agree that all warranties and indemnities set forth in the Lease shall inure to the benefit of Property Owner and that each of Landlord and Tenant will exercise its rights under the Lease in such a manner so as to not injure or damage the property of Property Owner or its tenants and so as to comply with Property Owner’s reasonable security and other rules respecting the Property so as to not interfere with the right of quiet enjoyment of the tenants at the Property. 5. Recitals. The Recitals provisions are incorporated herein by this reference. 6. Notice and Cure. Tenant agrees to give Property Owner written notice of any defaults by Landlord under the Lease and an opportunity, at Property Owner’s option, to cause the cure of such default within the cure periods set forth in the Lease, prior to exercising any remedies under the Lease. All notices to Property Owner shall be sent in accordance with the procedures for delivering notice under the Lease as follows: Parkview Limited Partnership Attn: Eric Schnell, Chief Operating Officer 901 North Third Street, Suite 150 Minneapolis, MN 55401 or to such alternate address or attention as Property Owner shall notify Tenant and Landlord in writing pursuant thereto. 7. Liens and Claims. Each of Landlord and Tenant agrees that it will not cause or permit any mechanic’s or materialmen’s liens or claims to be filed against the Property, or any part thereof, including, without limitation, the Leased Premises and shall indemnify Property Owner and its partners, and hold them harmless, from and against any and all mechanic’s or materialmen’s liens or claims or any other claims, whether third party claims or otherwise, arising from the Lease or the actions or omissions of Landlord or Tenant thereunder. Page 22 8. Easement Agreement. Tenant acknowledges that the Easement will be granted pursuant to a certain Easement Agreement between Landlord and Aeon to be recorded in the Anoka County real estate Easement records upon conveyance of fee title to the Property to Aeon (or its successor or assign) (the “ Agreement ”), and agrees that Tenant’s operations under the Lease, as amended hereby, will be in accordance with the recorded Easement Agreement and that, to the extent the Easement Agreement conflicts with the Lease, the Easement Agreement will control. 9. No Other Changes. Except as specifically provided herein, the Lease remains unchanged and in full force and effect. Capitalized terms not otherwise defined in this First Amendment shall have the meanings ascribed to them in the Lease. IN WITNESS WHEREOF the undersigned have executed this instrument the day and year first referenced above. LANDLORD : COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY By: Its President By: _________________________________ Its Executive Director STATE OF MINNESOTA ) ) ss. COUNTY OF ANOKA ) The foregoing instrument was acknowledged before me this ____ day of ______________, 2015 by ______________ and __________________, respectively the President and Executive Director of the Columbia Heights Economic Development Authority, on behalf of the authority. Notary Public TENANT: T-MOBILE CENTRAL LLC By: Its: _______ STATE OF ___________ ) ) ss. COUNTY OF _________ ) The foregoing instrument was acknowledged before me this ____ day of ______________, 2015 by ______________, the _________________ of T-Mobile Central LLC, a Delaware limited liability company, on behalf of the company. Notary Public Page 23 EXHIBIT A Description of the Property Tenant’s leasehold interest in Landlord’s easement rights granted in the following described property, pursuant to Easement Agreement recorded as Document No. ___________ in the land records of Anoka County, Minnesota: Tract A: That part of the South 1/2 of Lot 13, lying Northwesterly of the following line: Beginning at the Northeast corner of the South 1/2 of Lot 13; thence Southwesterly to a point on the South line of said Lot 13, said point being 2 feet Easterly of the Southwest Corners of Lot 13; the South 241 feet of Lot 14; then south 1/2 of Lot 15; Lot 39 except the West 30 feet thereof; Lots 40, 41, 42 and 43 and the West 1/2 of Lot 44, all in Block 5 Reservoir Hills, Columbia Heights, Anoka County, Minnesota (Abstract) Tract B: The East 40 feet of the South 1/2 of Lot 16, Block 5, Reservoir Hills, Columbia Heights, Anoka County, Minnesota. (Torrens) Tract C: (May be added later) EDA Minutes Page 24 August 3, 2015 5. Administrative Report 1.Staff will prepare the list of properties that could be sold for redevelopment for the September meeting. Most of these lots are located in the Sheffield area. 2.Dominium will bring their plan for 55+ housing before the EDA in September. This proposed project will be similar to the one recently built in St Anthony. Nawrocki said he feels we have enough rental in the City and is therefore, against the proposal. Szurek stated she attended the Open House they had and thought the buildings were very nice and is highly in favor of the project. She said the St Anthony building was almost full by the Grand Opening. She said the units are nice and many amenities are provided for the residents. 3.The new owners of the NE Office Building are actively seeking an anchor tenant. Once one is secured they will do a major renovation on both the exterior and interior of the building. They will be putting signs up advertising “something good is coming soon” to help cover the damaged wall until such time the exterior work begins. Hogeboom also reported the bank will be staying through the winter as they are having some problems securing the lease at their new site. th 4.The next regular HRA meeting will be October 27 and the next EDA meeting thth will be September 8. August 27 is the date of the Groundbreaking at Parkview Villa for the remodeling that will be started after the closing. The meeting was adjourned at 8:00 pm. Respectfully submitted, Shelley Hanson Secretary