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1992-1993William S. Radzwiu Andrew J. MacArthur Michael C. Couri Stanley A. Ellison Attorneys at Law 705 Central Avenue East P. ".BOX 369 Saint Michael, Minnesota 55376 (612) 4974930 (612) 497-2599 (FAX) June 11, 1993 Mr. Pat Dwyer Senior Vice President FIRST BANK OF ELK RIVER Elk River, MN 55330 Dear Mr. Dwyer: John DeLaundreau, Financial Analyst Kris DeLaundreau, Accounts Receivable Donna J. Matson, Receptionist/Secretary Enclosed is a copy of the transcript for the Otsego Economic Authority Minnesota Public Project Promissory Non -Recourse Note, Series 1993. I apologize for the delay in forwarding these documents. Our office was waiting on several documents to be returned from bond counsel, primarily the copies of the IRS Form 8038G with a transmittal letter. The final title opinion will be forthcoming as soon as we can update the abstract and draft the opinion. Your copy of the bond transcript contains duplicate originals of the Note Resolution, the Lease With Option to Purchase, the Short Form Lease, the Mortgage as recorded, the Resolution Authorizing Execution and Delivery of the Lease With Option to Purchase, the Certification of the City of Otsego, the Resolution Calling a Public hearing on the Redevelopment Plan, the Resolution of the City Accepting the Redevelopment Plan, the Treasurer's Receipt for Note Proceeds, the Resolution of the EDA Accepting the Redevelopment Plan, the Certification of the EDA, a Nonarbitrage Certificate from the EDA, UCC Form 1 filed with Wright County, the County Auditor's Certificate as to Registration, the Certificate of the Note Registrar, the Certificate of the Purchaser, Bond Counsel's opinion and the City Attorneys opinion. The transcript contains copies of the short form lease (certified copy bearing the Wright County Recorders information), Assignment of Leases and Rents (certified copy bearing the Wright County Recorders information), the Redevelopment Plan, a specimen note, IRS Form 8038G with transmittal letter and the preliminary Title Opinion. I will send you the full Title Opinion as soon as it is drafted. To the best of our's and the City's knowledge there has been no alteration in the title since the note issuance other than the mortgage to your bank. Thank you for your patience and for the service your bank has provided to the City of Otsego. Sincerely, n Stan ey A. Ellison �tADZWILL LAW OFFICE William S. Radzwill Andrew J. MacArthur Michael C. Couri Stanley A. Ellison RADZMLL LAW OFFICE Attorneys at Law 705 Central Avenue East P. O. Box 369 Saint Michael, Minnesota 55376 (612) 4974930 (612) 497-2599 (FAX) July 9, 1993 Elaine Beatty Deputy Clerk City of Otsego Otsego City Hall 8899 Nashua Avenue N.E. Elk River, Minnesota 55330 John DeLaundreau, Financial Analyst Kris DeLaundreau, Accounts Receivable Donna J. Matson, Receptionist/Secretary RE: Bond Transcript for EDA, Minnesota Public Project Promissory Non -Recourse Note, Series 1993 Dear Elaine: Attached are copies of the note Transcripts for the City Hall financing Note. there is one copy for the Economic Development Authority (EDA) and one for the City. these Transcripts contain many original documents or certified copies and they should be safeguarded for future reference and use. The EDA is the issuer of the Note and the owner of the building. The City has leased the building from the EDA with an option to purchase. Rental payments should be made to the EDA and the EDA pays the bank. Payment schedules and purchase option buy outs are at the end of the Lease With Option, Document 2 in the Transcript. Exhibit B shows the rental payments and Exhibit C shows the buy out price over the Lease term. The Note Resolution, Document 1 in the Transcript, states the requirements for payment of the Note. The EDA is required to establish an account designated "Series 1993 Public Project Promissory note fund". All rental payments and other project proceeds are to be credited to this account. These funds can only be used to note payments . The EDA is required to transfer funds to the Paying Agent bank from the trust fund one prior to the due date of the note payment. The Paying Agent then pays the bank. The Paying Agent is the Secretary of the EDA or the bank if authorized as the agent of the EDA to disburse funds. The buy out amounts vary over the life of the Lease. The longer the City leases the Hall the less the buy out amount is. This gives the City flexibility is determining its cash flow and the appropriate time to actually make the purchase. If the lease runs to term the buy out is $ 0. 0 0. The 31, 2007. At that time the City can this is not automatic however. The EDA to the City. The documents required included in the Bond Transcript. If you have a copy of this City's business. lease term ends on December get title to the building. will have to execute a deed for drafting the deed are IIquestions please call our -office. Please keep letter with the Transcripts. Thank you for the Sincerely, Stanley A. Ellison RADZWILL LAW OFFICE William S. Kadzwul Andrew J. MacArthur Michael C. Couri Stanley A. Ellison ADZ WILL LAW OFFICE Attorneys at Law 705 Central Avenue East P. O. Box 369 Saint Michael, Minnesota 55376 (612) 4974930 (612) 497-2599 (FAX) December 17, 1992 BY FACSIMILE Ms. Mary Ippel Briggs and Morgan 2200 First National Bank Building St. Paul, Minnesota 55101 RE: City of Otsego Community Center Bonding Dear Mary: Mei J. Dallman, Admin. Assistant John DeLaundreau, Financial Analyst Kristin DeLaundreau, Accounts Receivable Donna J. Matson, Receptionist/Clerk Following are some notes from the EDA Bonding Resolution and Lease With Option. The City Council passed the resolutions on December 14, 1992. As soon as I receive the corrected material I will have the resolution executed and registered at the Wright County Auditors Office. The appraisal is in progress. REVENIIE BOND RESOLIITION Page 1: There are two definitions of Bond Registrar. Page 10 The stated, date of the lease is December 1. The execution was authorized on December 14. This may not be an issue but if possible I would like to have the Lease dated and effective no earlier than the date authorized for execution. Page 17: The first sentence doesn't make sense unless the first period is a comma. Page 19: In clause 2-4 (4) there is a reference to subsection (5) above. Should this refer to (3)? Exhibit A: The legal description contains a typographic error. The "for" in the second line should be "of". LEASE WITH OPTION Title Page: As mentioned above, it would be best if the date was no earlier than 14 December 1992. This same change needs to be made throughout. Page 6: through 31 Term of the lease should be 1 January 1993 December 2007. Page 9: The projected completion date is The date included in the lease should be to allow for delays in construction or landscaping. Page 12: Section 3.3 includes references to the land sublease. Since the EDA will own the entire parcel this is not necessary. The section should be corrected by deleting "or, as to the land, subleases" in both places where it occurs. Page 19: The term "subleasing" in the first sentence should be "leasing". Page 23: Section 8.1, Title should be modified by deleting "but not the land" from the second sentence. Exhibit A: as in the above section the description is incorrect. Change the "for" in the second line to "of". I will call you after transmitting this to discuss the changes. Sincerely, y7g a. ems`_ Stanley A. Ellison RADZWILL LAW OFFICE LAW OFFICES WRITER'S DIRECT DZAI. NIIMBEH (612) 223-6628 E%PRESS MAIL BIRIGGS AND MOIiGAN PHOFESSIONAE ASSOCIATION 2200 FIRST NATIONAL BANg BIIILDING SAINT PAIIE, MINNESOTA 55301 TELEPHONE 1Q12) 223 - QQOO FACSIMILE (612) 223-6450 MINNEAPOLIS OFFICE 2400 IDS CENTER December 11, 1992 MINNRAPOISS, MINNESOTA, 55402 TELEPHONE (612) 334-8400 FACSIAIILE (612) 334-8650 Stanley Ellison Radzwill Law Office 705 Central Avenue East P.O. Box 369 St. Michael, MN 55376 Re: Economic Development Minnesota - $450,000 1992 (City of Otsego Project) Dear Stan: Authority of the City of Otsego, Public Project Revenue Bond, Series Lease With of Option to Purchase Enclosed at your request and at the direction of Mary Ippel of this office in connection with the above -referenced matter, please find a copy of the operative and closincf documents. It is understood that the City Council as well as the Economic Development Authority will meet on December 14 to adopt their respective resolutions, and that the closing will be scheduled for sometime this month. I trust this will be sufficient for your purposes thus far, and please do not hesitate to call either Mary or me should you have any questions or comments regarding this matter. truly yours, Todd Ha n Paralegal Enc. 230606 $450,000 PUBLIC PROJECT REVENUE BOND, SERIES 1992 (CITY OF OTSEGO LEASE WITH OPTION TO PURCHASE PROJECT) ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF OTSEGO, MINNESOTA PART I. Basic Agreements and Documents 1. Revenue Bond Resolution 2. Lease With Option to Purchase Agreement PART II. Additional Documents from City 1. Resolution of City Approving Lease 2. Certificate of City 3. Resolution Calling Public Hearing on Redevelopment Plan 4. Redevelopment Plan 5. Resolution Approving Redevelopment Plan 6. Treasurer's Receipt for Bond Proceeds 7. Quitclaim Deed PART III. Documents from Authority 1. Resolution of Authority 2. Certificate of Authority 3. Nonarbitrage Certificate 4. Financing Statements PART IV. Documents from County 1. County Auditor's Certificate as to Registration PART V. Documents from Bond Registrar 1. Bond Registrar's Certificate 2. Specimen Bond Register PART VI. Additional Documents 1. Specimen Bond 2. Certificate of Purchaser 3. Informational Statement (Form 8038-G) and Transmittal Letter PART VII. Qpinions 1. Legal Opinion of Bond Counsel 2. Legal Opinion of City Attorney 230437 630 MAIN SE, ELK RIVER, MN 0 a PHONE000 PHONEELK RIVER MALL, 846 FREEPORT AVE. . 900 Our Second Century MEMBER FDIC December 127 1992 William S. Radzwill City of Otsego 705 Central Ave. St. Michael, MN 55376 RE: Otsego City Hall Dear Bill: Enclosed is a copy of my appraisal engagement letter to Mr. Watson. Call me if you have any questions. Sinc 1, Pat►�ick H. Dwyer Senior Vice President We're banking on our town! TIM BANK OF ELK RIVER 630 MAIN ST, ELK RIVER, MN 55330 • PHONE 44171000 ELK RIVER MALL, 846 FREEPORT AVE. • PHONE 441-9000 Our Second Centtuy December 127 1992 Mr. Malcolm 0. Watson Watson Appraisal and Consultant Service 4230 Central Ave. NE !� i n.neapol i s, 411 55t2 i RE: Otsego City Hall Dear Mr. Watson: This letter is your authorization to perform an appraisal of the above referenced property. For plans and specifications and basic property information, you can contact the Otsego city architect. This appraisal is expected to fully demonstrate and support in narrative form, via the three generally accepted approaches to estimating Market Value (as promulgated by the Uniform Standard of Professional Appraisal Practices, the Code of the Professional Appraisal Ethics and nationally recognized professional appraisal organizations). All of the assumptions you employ in reaching your own final estimate of Market Value will be for the subject property in its' completed condition. In compiling your data you will adhere to the definition of "Market Value" and the "Minimum Required Appraisal Standards" as defined in FDIC regulation 323 which is enclosed. The final appraisal report must be addressed and delivered to Patrick H. Dwyer, Senior Vice President, The Bank of Elk River, 630 Main St., Elk River, MN 55330. As agreed, your will bill this bank for your service . Si ely, '3 Patrick H. Dwyer Senior Vice President encl. 410 Van Dyke appraisal William S. Radzwul Andrew I. MacArthur Michael C. Couri Stanley A. Ellison RADZWILL LAW OFFICE Attorneys at Law 705 Central Avenue East Box 369 Saint Michael, Minnesota 55376 (612) 4974930 (612) 497-2599 (FAX) December 2, 1992 Ms. Mary Ippel Briggs and Morgan 2200 First National Bank Building St, Paul, Minnesota 55101 RE: City of Otsego Community Center Bonding Dear Mary: The Bank of Elk River, 630 Main Street, 55330, (612)441-1000, has agreed in principal for the Otsego City Hall/Community Center officer dealing with this matter is Mr. Pat as follows: AMOUNT: TYPE: TERM: CALL: RATE: Mei J. Dallman, Admin. Assistant John DeLaundreau, Financial Analyst Kristin DeLaundreau, Accounts Receivable Donn J. Matson, Receptionist/Clerk Elk River, Minnesota, to purchase= the bonds. funding. The bank Dwyer. The terms are $450,000.00 Revenue.bond secured by revenues from.the-lease of the City Hall. 15 year. No prepayment penalty. Adjustable, set at 3% above the Federal Discount twice a year and once a year. The current Federal Discount Rate is 3%. The Federal Discount Rate is printed in the Federal Reserve Bulletin, published monthly by the Federal Reserve Bank Board of Governors. Future adjustments are limited to a maximum of 1%. I suggest establishing the initial rate based on the November Discount rate of 3% and floating the future rates to 3% above the Discount rate as published in the last month of the applicable period (years 5 and 10). The entire 75 the EDA but only a acre parcel owned by the City will be deeded to The north 535.00 feet of the south 885.00 feet for the east 480.00 feet of the north half of the Northwest Quarter of Section 20, Township 121, Range 23, Wright County, Minnesota. The bank is requiring an appraisal. An appraiser has been chosen and approved by the bank and we are in the process of having the appraisal completed at this time. When it is completed I will forward a copy for your information. If you need other information to initiate the final document set up or teh bonding procedure please contact me and I will get it for you. The City Council meets on December 14, 1992 and we would like to have some documents or a definite time schedule for them at that time. Thank you for your time and consideration. Sincerely, Stanley A. Ellison RADZWILL LAW OFFICE William S. Radzwill Andrew J. MacArthur Michael C. Couri Stanley A. Ellison RADZWILL LAW OFFICE Attorneys at Law 705 Central Avenue East P. O. Box 369 Saito Michael, Minnesota 55376 (612) 4974930 (612) 497-2599 (FAX) November 23, 1992 City of Otsego City Council C/O Elaine Beatty 13474 95th Street Northeast Elk River, Minnesota 55330 RE: Bonding on the New City Hall Dear Council Members: Mei J. Dallman, Admin. Assistant John DeLaundreau, Financial Analyst Kristina DeLaundreau, Accounts Receivable Donna J. Matson, Receptionist/Clerk The following is a summary of the relevant aspects of the bond as accepted in principal by the Elk River Bank and some matters of general concern related to the bonding: PROPOSED BONDING AMOUNT: $450,000.00 TYPE• Revenue bond secured by revenues TERM - 15 year CALL• 5 year from the lease of the _City Hall. RATE: Adjustable, set at 3% above the Federal Discount Rate and adjustable twice during the bond period at the beginning of years 6 and 11. Currently, the discount rate is set at 3% yielding an initial rate of 6%. The adjustment is capped and floored at a maximum 1% increase or decrease, respectively, at each of the two adjustment periods. The rate in years 1 through 5 will be 6%. The maximum rate in years 6 through 10 is 7% and in years 11 through 15 it is 8%. The minimum rate in years 6 through 10 is 5 % and in years 11 through 15 it is 4%. AMORTIZATION: The attached Schedule A shows the amortization over 15 years with a constant 6% interest. Schedule B shows the amortization with interest at the maximum allowed rates. PAYMENTS: Amortization has been set up to keep the total annual Principal and Interest payments less than $50,000. Interest payments will be made twice a year. Principal payments will be made once a year. Schedule C and D show the bi-annual interest and annual principal payments for a constant 6% and the maximum rates, respectively. BUILDING AND LOT 10 ACRE SPLIT: Mary Ippel has approved the inclusion of a smaller parcel rather than the entire 75 acre parcel. The entire parcel should be deeded to the EDA but the EDA will only pledge a portion and the building as security. This will require a survey of some sort to get a new Land description. Once that is done we can start drafting final documents for the bond. REZONING OF PARCEL: If the parcel is split into a multiple parcels for security on the bond the Zoning will have to be altered to allow the split. There is a covenant on the property that requires conformance to the Zoning Ordinance and the current Ordinance does not allow such splits as currently zoned. The entire parcel should be rezoned to INS which will allow any splits required or necessary for the convenience of the City. COST OF BUILDING: A estimate of the cost of the structure needs to be established and updated regularly so that the final cost or an accurate estimate is available at bond closing. APPRAISAL OF BUILDING: The bank is requiring an appraisal. Selection of an appraiser and acquisition of the appraisal is in progress at this time. Sincerely, Stanley A. Ellison RADZWILL LAW OFFICE INT. RATE YEAR SCHEDULE A AMORTIZATION OF CITY HALL BONDS, PRINCIPAL REMAINING INTEREST PAYMENT PRINCIPAL PAYMENT 15 YEAR TOTAL PAYMENT 6% J. $20,000.00 $450,000.00 $271000.00 $47,000.00 6% 2 $201000.00 $430,000.00 $251800.00 $45,800.00 6% 3 $201000.00 $4101000.00 $24,600.00 $44,600.00 6% 4 $25,000.00 $3901000.00 $23,400.00 $48,400.00 6% 5 $25,000.00 $365,000.00 $21,900.00 $46,900.00 6% 6 $25,000.00 .$340,000.00 $20f400.00 $45,400.00 6% 7 $25,000.00 $315,000.00 $18,900.00 $43,900.00 6% 8 $301000.00 $290,000.0O $17,400.00 $471400.00 6% 9 $30,000.00 $260,000.00 $151600.00 $45,600.00 6% 10 $35,000.00 $2301000.00 $13,800.00 $481800.00 6% 11 $351000.00 $195,000.00 $11,700.00 $461700.00 6% 12 $40,000.00 $160/000.00 $9,600.00 $49,600.00 6% 13 $40,000.00 $120,000.00 $7,200.00 $471200.00 6% 14 $401000.00 $80,000.00 $4,800.00 $441800.00 6% 15 $40,000.00 $40,000.00 $2,400.00 $42,400.00 $450,000.00 $244,500.00 $694,500.00 INT. RATE YEAR 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 AMORTIZATIO PRINCIPAL PAYMENT $20,000.00 $20,000.0O $25,000.00 $251000.00 $25,000.0O $25,000.00 $25,000.00 $30,000.0O $30,000.00 $34,000.00 $34,000.0O $35,000.00 $40,000.00 $41,000.00 $46,000.0O $455,000.00 SCHEDULE B N OF CITY HALL BONDS, REMAINING INTEREST PRINCIPAL PAYMENT $450,000.00 $430,000.00 $410,000000 $385,000.00 $360,000.00 $3351000.00 $310,000.00 $285,000.00 $255,000.00 $2251000.00 $191,000000 $157,000.00 $122,000.00 $821000000 $41,000.00 15 YEAR TOTAL PAYMENT $27,000.00 $251800.00 $241600.00 $231100.00 $211600.00 $23,450.00 $2lf700.00 $191950000 $17,850.00 $15,750.00 $151280.00 $121560.00 $9,760.00 $6,560.00 $3,280.00 $47,000.00 $45f800.00 $49f600.00 $48,100.00 $46,600.00 $48f450.00 $46,700.00 $491950.00 $471850.00 $491750.00 $49,280.00 $47f560.00 $491760.00 $47,560.00 $49,280.00 $268,240.00 $723,240.00 OTSEGO CITY HALL BONDS BI-ANNUAL INTEREST AND ANNUAL TOTAL ANNUAL INT. RATE YEAR INTEREST 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 $27,000.00 $25,800.00 $24,600.00 $23,400.00 $21,900.00 $201400.00 $18,900.00 $17,400.00 $151600.00 $13,800.00 $11,700.00 $9,600.00 $7,200.00 $4,800.00 $2,400.00 SCHEDULE C PR INCIPAL PAYMENTS BI-ANNUAL ANNUAL INTEREST PRINCIPAL $27,000.00 $25,800.00 $241600.00 $231400.00 $211900000 $20,400.00 $18,900.00 $171400.00 $15,600.00 $13,800.00 $1lf700.00 $9,600.00 $7,200.00 $4,800.00 $21400.00 $20,000.00 $20,000.00 $20,000.00 $251000.00 $25,000.00 $251000.00 $25,000.00 $30,000.00 $301000000 $35,000.0O $35,000.00 $401000000 $40,000.00 $40,000.00 $401000000 TOTAL PAYMENT $47,000.00 $451800.00 $441600.00 $48,400.00 $4b1900000 $451400.00 $431900.00 $47,400.00 $45f600.00 $48,800.00 $46,700.00 $49f600.00 $471200.00 $441800.00 $42f400.00 OTSEGO CITY HALL BONDS BI-ANNUAL INTEREST AND ANNUAL TOTAL ANNUAL INT. RATE YEAR INTEREST 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 $27,000.00 $25,800*00 $241600.00 $23,100.00 $21,600.00 $23,450.00 $21,700.00 $19,950.00 $17,850.00 $15,750.00 $15,280*00 $12,560.00 $9,760*00 $6,560.00 $3,280.00 SCHEDULE D PRINCIPAL PAYMENTS BI-ANNUAL INTEREST $13,500.00 $121900*00 $121300*00 $11,550.00 $101800000 $11,725.00 $101850*00 $9,975.00 $81925.00 $7,875.00 $71640.00 $61280.00 $41880.00 $31280.00 $1,640.00 ANNUAL PRINCIPAL $20,000.00 $201000.00 $251000.00 $251000.00 $251000.00 $25,000.0O $251000.00 $30,000.00 $30,000.00 $341000.00 $341000.00 $351000*00 $40,000.00 $411000000 $461000000 TOTAL PAYMENT $47,000.00 $451800.00 $491600.00 $481100000 $461600.00 $48,450.00 $461700.00 $491950.00 $471850.00 $49,750.00 $491280.00 $471560.00 $491760.00 $47f560.00 $49,280.00 "SERVING OUR COMMUNITY SINCE 1000 P. O. Box 40 ❑ Buffalo, Minnesota 55313=0040 ❑ November 16, 1992 Mr. Stanley A. Ellison Radzwill Law Office 705 Central Avenue East P. 0. Box 369 St. Michael, Minnesota 55376 Dear Mr. Ellison: I have visited with the Bank's Investment Officer, Mr. Robert Peroutka in regard to the financing of the new Otsego City Hall by the Oakley National Bank or a Klein Bank affiliate. Mr. Peroutka thought the investment would not fit into any of the Klein Banks Investment Portfolio at this time. The Oakley National Bank appreciates being considered in regard to this investment and would welcome other opportunities when they are available. Yours truly, ® 1 14 i/ e Larry J. Schwahn Senior Vice President TWO FULL SERVICE BANKING LOCATIONS Downtown: (612) 682-1142 Metro: (612) 339-4326 Fax: (612) 682-1261 Branch: (612) 682-5390 Metro: (612) 339-5024 Fax: (612) 682-5477 William S. Radzwill Andrew J. MaeArihur Michael C. Couri Stanley A. Ellison ADZ WILL LAW OFFICE Attorneys at Law 705 Central Avenue East P. O. Box 369 Saint Michael, Minnesota 55376 (612) 4974930 (612) 497-2599 (FAX) November 12, 1992 Mei J. Dallman, Admin. Assistant John DeLaundreau, Financial Analyst Kristina DeLaundreau, Accounts Receivable Donna J. Matson, Receptionist/Clerk Mr. Larry Schwahn Oakley National Bank P.O. Box 40 Buffalo, Minnesota 55313 RE: Financing of New Otsego City Hall/Community Center Dear Mr. Schwahn: This letter is in reference to a telephone conversation you had with Bill Radzwill on November 12, 1992. Following is some general information about Otsego and the particulars of the financing package as it is currently contemplated by the City. The City of Otsego is located in northeastern Wright county. It was incorporated in 1990 and includes the area previously governed by the Town of Otsego. The City is currently operating out of the old town Hall building. This facility is not sufficient due to its limited size and an inability to expand due to the location of the building within the Mississippi River Wild and Scenic Area. Services provided by the City are minimal at the present time but long term plans call for construction of both municipal water and sewer systems and a phases program of connection of all city residents to those utilities. The 1992 gross real estate value for the City is $118,761,800 as reported by the Wright County Auditor. The net tax capacity reported by the Wright County Auditor was 41,488,483. The current bonded indebtedness of the City is $540,000 carried as General Obligation bonds. The City reduced its bonded indebtedness by $80,000 during the past year. The facility under construction will serve as a City Hall and a Community Center. It is an approximately 8600 square foot structure located on approximately 75 acres of land. The estimated construction cost is $540,000.00. The cost of the land, which was purchased by the City in 1992, was $130,000. The City desires to bond approximately $450,000.00 of the total cost. Revenue to repay the bonds results from a lease with option to purchase between the Otsego Economic Development Authority (hereinafter "EDA") and the City. The City transfers ownership of the building and land to the EDA and the EDA leases the structure and land back to the City as a lease with option to purchase. Revenue bonds are issued by the EDA with the revenue from the lease to the City pledged to repayment of the bonds. The lease/option agreement contains a non -appropriation clause and related safeguards for the bondholders. Minnesota Statute 465.71 requires that a lease/purchase agreement entered into by a city contain a non -appropriation clause. Several mechanisms are included in the deal to safeguard the interests of the bond holders in the event of a non -appropriation or other default by the City. There is a non -substitution clause which prohibits the City from moving to another facility used for the same purposes for 90 days after default. In the event of default on the lease by the City the bondholders may accelerate the bond and the EDA must either pay the bond in full or relinquish the facility and land to the bondholder. In that sense the financing is similar to a mortgage in that the ultimate security for the bondholder is the value of the facility and land. The bonds are non-taxable municipal securities. They are issued by the EDA which is a political subdivision of the City. The use is public in nature and the land is held and used by the municipality. The bond counsel, Ms. Mary Ippel of Briggs and Morgan, will be producing an opinion to that effect. The desired bond term is 15 years with a five (5) year call. The interest rate is negotiable but the City is looking for a rate in the area of 6%. The City prefers to place the bonds relatively locally and with a single party if possible. This allows the use of "xerox" bonds and significantly reduces the cost of the bonding. If any bank in your group is interested in participating in the bond sale please contact me or Mr. Radzwill. Thank you for your time and consideration. Sincerely, Stanley A. Ellison RADZWILL LAW OFFICE William S. Radzwill Andrew J. MacArthur Michael C. Couri Stanley A. Ellison RADZWILL LAW OFFICE Attorneys at Law 705 Central Avenue East P. O. Box 369 FROM : S-tY�-•,� � t 1,r S o`'� SUBJECT: Saint Michael, Minnesota 55376 (612) 4974930 (612) 497-2599 (FAX) FACSIMILE COVER PAGE FAX NUMBER. CO E5 - Z ADDITIONAL COMMENTS : Mei J. Dallman, Admin. Assistant John DeLaundreau, Financial Analyst Kristin DeLaundreau, Accounts Receivable Donn J Matson, Receptionist/Clerk AM/PM TOTAL PAGES:_ (Including cover page) The information contained in this facsimile is intended for the use of the individual named above. If you have received this message in error or if the transmission is incomplete, please notify Mel ) allman immediately by telephone, (612) 497-1930. 9 November 13, 1992 NORTHW=ST Mr. Stan Ellison, Attorney Radzwill Law Office 705 Central Avenue East St. Michael, MN 55376 Re: City of Otsego Proposed City Hall Bond Issue Dear Mr. Ellison: 701 Central Avenue E. S1 Michael, Minnesota 55376 (612) 497-2131 FAX (612) 497-4353 First of all, I want to thank you and Mr. Couri for your efforts in allowing us to bid on the above mentioned bond issue for the new Otsego City Hall. As you know, my bank has been trying to have closer relations with the city of Otsego for some time now and we are hopeful that our commitment to construct a new full service banking facility in Albertville will help in this regard. Therefore, it is with a great deal of regret that I write to inform you of our inability to fund the above bond issue. Our reasoning is not so much a reflection of any negative aspect of either the city or the bond issue, but rather reflects our own lending policy. Our specific areas of concern have to do with the fact that the town hall construction was done without a referendum and in fact, may carry some unknown amount of opposition within the city of Otsego which we are unaware of. Finally, the fact that the bonds will not be a general obligation issue and that the lease is cancelable, essentially leaves us without a responsible debtor. The loan would je an asset based loan in the strictest sense of the word and our loan policy dictates that we avoid such situations. While we have no immediate fear of the city of Otsego walking away from its obligation, we are loathe to establish a precedent in this area which other municipalities might come to expect from us. I am hopeful that you understand our regret we have in passing on this questions please do not hesitate convenience. Sipcerely, Gerald A. Manville Sr. Vice President situation and that you sense the loan request. If you have any to contact me at your earliest oFFices: Albertville: 5882 Main Street Northeast, Albertville, Minnesota 55301, (612) 497-3525 •Maple Grove: 13370 Grove Drive, Maple Grove, Minnesota 55369, (612) 420-3039 William S. Radvvill Andrew J. MacArthur Michael C. Couri Stanley A. Ellison RADZWILL LAW OFFICE Attorneys at Law 705 Central Avenue East P. O. Box 369 Saint Michael, Minnesota 55376 (612) 4974930 (6I2) 497-2599 (FAX) November 11, Mr. Jerry Manville Security Bank Northwest 701 Central Avenue E. St. Michael, MN 55376 1992 Mei J. Dallman, Admin. Assistant John DeLaundreau, Financial Analyst Kristina DeLaundreau, Accounts Receivable Donna J. Matson, Receptionist/Clerk Re: City of Otsego proposed City Hall bond issue. Dear Jerry: I am writing to confirm our discussions regarding a proposed bond issue for the Otsego City Hall. In our tentative discussions, you thought that the board would accept a revenue bond from the Economic Development Authority (EDA) of the City of Otsego. The bond would not be a general obligation bond, but would be secured by the rentals paid by the City to the EDA for the use of the building, and would contain a non -appropriation clause such that if the City failed to appropriate funds for rental, the Bank would have the right to gain possession of the City Hall building and land (or other equivalent clause granting the Bank substantially the same powers). The bond would be a 15-year bond, bank -qualified under Section 265(b)(3) of the Internal Revenue Code, and will be issued with no rating, no discount and no financial consultant or fiscal fee. The bond will be registered with the Wright County Auditor. Simple interest would accrue at 6.0% annually, with interest payments twice annually and fairly level principal payments annually. The bond would be callable anytime after five years. The amount of the bond would not exceed $500,000, but may be limited by the bank to 65% of the lower of cost or the appraised value of the building and land, although the Bank may be able to commit to a percentage higher than 65%. The land was purchased for approximately $120,000 in early 1992, and the building is expected to cost approximately $540,000 to construct. Mary Ipple of Briggs and Morgan will provide the bond opinion. Mr. Jerry Manville November 11, 1992 Page Two These terms were presented to the City Council on November 9, 1992, and the Council indicated its satisfaction in principal with the terms, although they would prefer a higher percentage than 65%. At this time I would appreciate it if you would obtain a commitment from the board that the Bank will provide financing on the terms discussed above, subject to the preparation of a debt service schedule detailing payment dates and amounts once a dollar figure for the bond is obtained, and subject to agreement as to the details of the issue. I am also enclosing a copy of the floor plan of the main floor. Plans for the second floor and for the building design generally are available in our office, but they are hard to copy due to their large size. Please feel free to contact Stan Ellison or Andy MacArthur if you wish to see all of the plans. Finally, I will be out of town for the rest of November. Stan Ellison of our office will be working on this bond issue. Feel free to contact him with any questions you may have. Sincerely, Michael C. Couri RADZWILL LAW OFFICE William S. Radzwill Andrew J. MacArthur Michael C. Couri Stanley A. Ellison OF: RADZWILL LAW OFFICE Attorneys at Law 705 Central Avenue East P. O. Box 369 Saint Michael, Minnesota 55376 (612) 497-1930 (6I2) 497-2599 (FAX) FACSIMILE COVER PAGE Mei J. Dallman, Admin. Assistant John DeLaundreau, Financial Analyst Krishna DeLawulreau, Accounts Receivable Donna J. Matson, Receptionist/Clerk DATE: Z tyL Z TIME: dU; U /PM TOTAL PAGES. (Including cover page) FAX NUMBER: I-j-CF ADDITIONAL LIK N.) a 7 Cis /l i d The information contained in this facsimile is intended for the use of the individual named above. If you have received this message in error or if the transmission is incomplete, please notify Mel Dallman immediately by telephone, (612) 497-1930. FOR OTSEGO CO Y CENTER PROJECT October 15, 1992 TABLE OF CONTENTS zNTRODUCTION AND LEGAL BASIS 1 Intent 1 Statement 1 Redevelopment Area Boundaries 1 Statement of Authority 1 Findings and Declaration 2 REDEVELOPMENT PROGRAM 2 Redevelopment Plan Objectives 2 Land Use . . . . . . . . 0 3 Redevelopment Activities 3 Financing Plan . . 4 Development Standards 4 Environment Controls 5 Administration of Project 5 Modification of Plan 5 I.INTRODUCTION AND LEGAL BASIS A. Intent The Economic Development Authority of the City of Otsego (hereinafter "EDA") proposes to cause to be constructed an approximately 8600 square foot Community Center (hereinafter "Center"). The City of Otsego (hereinafter "City") will lease the Center from the EDA with an option to purchase pursuant to a lease with option to purchase agreement. A revenue bond in the principal amount not to exceed $ 540,000 is proposed to be sold by the EDA to finance the construction of the Center. The revenue bond will be secured by the payments to be made by the City under the lease with option to purchase agreement. B. Statement The City and EDA have determined that conditions exist within the Redevelopment Area which have prevented development and redevelopment of land by private enterprise. It has been found that the Redevelopment Area is potentially more useful and valuable for contributing to the public health, safety and welfare than has been realized under existing development. The Center is intended to serve as a focal point and stimulus for a community identity for the newly organized City which has no organized downtown area at this time. The Center is also intended to serve as a central location for facilitating economic and other development and redevelopment in the City. It is hoped that the Center and the Redevelopment Area will serve as a nucleus for a future downtown area. The development of these parcels is not attainable in the foreseeable future without the intervention of the EDA in the private development process. The EDA has prepared the Redevelopment Plan, which provides for the elimination of these conditions, thereby making the land useful and valuable for contributing to the public health, safety and welfare. C. Redevelopment Area Boundaries The boundaries of the Redevelopment Area are outlined on the Redevelopment Area Boundary Map, Exhibit A. All land included in the Project Area is within the legal boundaries of the City. 1 II. D. Statement of Authority Minnesota Statutes Section 469.001-469.047 (Housing and Redevelopment Authority Act) grants municipalities the authority to designate redevelopment areas within the boundaries of the municipalities. Within these areas, the municipality may adopt a redevelopment plan and establish a project consistent with the municipality's public purpose. The project as contemplated by this plan consists of a redevelopment project as defined in Section 469.001, Subdivision 14. The lease with option to purchase agreement is authorized under Minnesota Statutes, Section 465.71. E. Findings and Declaration The City of Otsego and the Economic Development Authority of the City of Otsego make the following findings. 1. The certain parcels of land in the project area would not be made available for redevelopment without some public financial aid. 2. The redevelopment plans for the Redevelopment Area I n Otsego will afford maximum opportunity, consistent with the needs of the locality as a whole, for the redevelopment of the area by private enterprise. 3. The Redevelopment Plan conforms to the general plan for development of the locality as a whole. REDEVELOPMENT PROGRAM A. Redevelopment Plan Objectives The EDA, through implementation of this plan, seeks to achieve the following objectives: 1. To promote and development of seek the orderly the Redevelopment and harmonious Area. 2. To provide logical and organized land use for the entire Redevelopment Area consistent with the Comprehensive Land Use Plan and the Zoning Ordinance of the City. 3. To promote the prompt development of property in Redevelopment Area with a minimal adverse impact on the environment. 4. To provide general design guidance in conjunction with a suitable development contract in order to 2 C. enhance the physical environment of the area. 5. To provide adequate utilities and other public improvements and facilities, to enhance the Redevelopment Area and the City for new and existing development. 6. To assist the financial feasibility of private projects to the extent necessary and where there is a corresponding level of public benefit. 7. To enhance the overall economy of the City and surrounding area by retaining current, and providing additional, employment opportunities for the residents of the City and surrounding community 8. To increase the City's tax base. 9. To stimulate development and investment within the Redevelopment Area by private interests. Land IIse The proposed land use for the Redevelopment Area is commercial office space and other lot intensity commercial use types. This may include some retail or service commercial land uses. Public facilities necessary for the public health, safety and welfare are allowed uses by conditional use permit. Redevelopment Activities 1. Acquisition The City presently owns the property in the Redevelopment Area on which the Center will be located. Other than that property, no property is contemplated to be acquired by the EDA at the present time. 2. Relocation It is not expected that any persons will be displaced as a result of this Redevelopment Plan. 3. Rational The EDA proposes Center within the of site was based proximity to the to cause construction of the Redevelopment Area. The choice on several factors including the current Community Center 3 structure, limits on expansion of current structures, central location in the City and current land uses on the Area. The City selected the site because the land within the Redevelopment Area has been unproductive for a long period and the Area is located near the current Community Center and City Hall. Expansion or reconstruction of the current City facility is impossible due to the Mississippi River Wild and Scenic River zoning regulations imposed by the Minnesota Department of Natural Resources by Rule. These rules and regulations post date the current structures and effectively prevent any modification or further construction in the vicinity of the current structures. The completed facility will be sold to the City under a lease, with option to purchase agreement. Financing Plan 1. 2. Project Budget The following budget details estimated development costs associated with the Center. Discount ( %) Bond Counsel/Disbursements Miscellaneous Costs of Issuance Construction Less: Est. Cash Contribution by City $110,000.00 Total Project Cost: $ The items of cost and the costs thereof shown above are estimated to be necessary based upon the qualified appraisers, consultants, legal and cost information now available. It is anticipated that the items of cost and the costs thereof show in each category above may decrease or increase, but that the total project cost will not exceed the amount shown above. Source of Funds and Security The City is entering into the lease with option to purchase agreement with the EDA pursuant to Minnesota Statutes, Section 465.71. The lease with option to purchase agreement is payable from E. F. G. general sources including taxes, and its payment is not limited to a specific fund or specific source of revenues. 3. Bond Issue Details The EDA will issue approximately $ 5401000 in public project revenue bonds. The bonds would have a year maturity and be retired in the year 19 Development Standards The EDA will consider among other things, the following factors when evaluating development proposals for projects within the Redevelopment Area seeking public assistance and support: 1. Degree to which redevelopment objectives are provided for or enhanced. 2. Consistency with this plan and the Otsego Comprehensive Plan. 3. Any private developer's ability to perform both from a standpoint of financial ability to perform and the necessary experience and expertise to complete the proposed development. Environment Controls It is presently anticipated that the proposed development in the Redevelopment Area will not present major environmental problems. All municipal actions, public improvements, and private development will be carried out in a manner that will comply with applicable environmental standards. The environmental controls to be applied within the area are contained within the codes and ordinances of the City of Otsego. Administration of Project The Otsego City Council has authorized the Economic Development Authority of the City of Otsego to be responsible for seeing that the contents of this plan are promoted, implemented and enforced. Modification of Plan A Redevelopment Plan modification must be upon notice and after may be modified at any time. The adopted by the EDA and the City, the public hearing required for 5 the original adoption of the Redevelopment Plan. Changes that do not alter or affect the exterior boundaries and do not substantially alter or affect the general land use established in the plan, shall not constitute a modification of the Redevelopment Plan, or require approval by the City. EDA6A William S. Raama Andrew J. MacArthur Michael C. Couri Stanley A. Ellison RADZWILL LAW OFFICE Attorneys at Law 705 Central Avenue East P. O. Box 369 Saint Michael, Minnesota 55376 (612) 497-1930 (612) 497-2599 (FAX) October 5, 1992 City Council of Otsego C/O Elaine Beatty 13474 95th Street Northeast Otsego, Minnesota 55330 RE: New City Hall Dear Council Members: Mei J. Dauman, Admin. Assistant John DeLaundreau, Financial Analyst Kristina DeLaundreau, Accounts Receivable Donna J. Matson, Receptionist/Clerk Enclosed is a memorandum outlining several options available for financing the new City Hall. Note that if an EDA is used and General Obligation bonds are sold there is still a requirement for an election. If bonds of any type are used there will be problems with repaying the City for any disbursements made prior to a resolution authorizing the bonding and actual sale of the bonds. An alternative not addressed in the memorandum is paying for the City Hall with available funds and issuing Certificates of Indebtedness for capital items. This matter needs to be addressed as soon as possible. After a choice is made on the avenue to pursue our office can complete the arrangements. The process will most likely involve using the services of outside counsel for some of the particulars of the transactions. If you have an questions please contact me at our office. Sincerely, Stanley A. Ellison RADZWILL LAW OFFICE MEMORANDIIM TO: Otsego City Council FROM: Stan Ellison REFERENCE: Financing for New City Hall DATE: October 5, 1992 The attached data is in reference to financing for the new City Hall. Three options are addressed, General Obligation bonding, using an EDA as an intermediary and using a non-profit corporation as an intermediary. A fourth alternative is paying for the building out of City funds and issuing Certificates of Indebtedness for capital items. FINANCING OPTIONS OTSEGO CITY HALL FINANCING NEED DETERMINED FINANCING OPTIONS GENERAL OBLIGATION EDA NON-PROFIT BONDS CORPORATION Process: Issue G.O. bonds for full cost Process. Establish EDA and bond or Process: Form non-profit and use Cert. of Part. use Cert. of Part. PROS: 1. Clear authority PROS: 1. Multiple uses PROS: 1. Clear authority 2. Defined process 2. Defined process 2. Defined process 3. "Normal" method 4. Lowest interest 3. Flexible 4. May use revenue bond 3. Flexible CONS: 1. Election required CONS: 1. Problematical authority CONS: 1. Complex process 2. Long lead time 3. Cannot cover pre- paid items 2. Marginal use 3. Higher interest if not G.O. bond 4. Election required for G.O. bond y. Difficult to 2. Cannot bond 3. Higher interest 4. Difficult to cover pre- paid items cover prepaid - items All three options maybe supplemented by issuing Certificates of Indebtedness for capital items and furnishings. ECONOMIC DEVELOPMENT AUTHORITY Although no general purpose is stated in the statute (Minnesota Statute 469.090 through 469.1081) for an Economic Development Authority (hereinafter "EDA") the statute can be read to indicate that an EDA is generally formed to assist and facilitate economic development within a city. If supportable finding of fact can be established an EDA can perform a large number of things including owning and operating properties. The strongest powers of an EDA are within established Economic Development Districts (hereinafter "EDD"). There are distinct limits on what types of property can be included in an EDD. Generally EDD's are restricted to property that is economically distressed. Outside of an EDD the EDA may operate in a more restrictive manner to stimulate economic development. The following describes the steps required to establish and operate an EDA. IDENTIFY THE NEED: The first step in establishing an EDA is identifying the need for the 'body. This is a major policy decision and should be based on identified problems, the city plan and estimates of required development. The basis in fact for the need should be identified in the enabling resolution if possible. ESTABLISH THE EDA: Minnesota Statute 469.091 establishes city authority to form an EDA. This is done by passing an enabling resolution. The EDA may be limited by this resolution to the powers contained in Minnesota Statutes 460.090 to 469.108. An EDA can also assume the powers of a Housing and Redevelopment Authority under Minnesota Statutes 469.001 to 469.047 and the powers of a city under Minnesota Statutes 469.124 to 469.134 and other law. The process is established by Minnesota Statute 469.093. Adoption of the enabling resolution must be preceded by a public hearing. This hearing must be preceded by notice. Notice must include the time and place of the hearing, the purpose of the hearing and a summary of the resolution. This notice must be published in a newspaper of general circulation within the city for two consecutive weeks with the first publication not more than 30 days from the date of the hearing. ORGANIZE THE EDA: A series of steps, each accompanied by a resolution,are required for organizing the EDA and putting it into operation. The first of these is the adoption of a resolution by the City council setting salaries for the Board of Commissioners. These salaries are to be set on a per -meeting basis. The next step is adoption of an organizing resolution by the EDA Bard of Commissioners (hereinafter "Board"). This organizing resolution establishes the existence of the EDA, adopts its bylaws and appoints officers. Required officers are a President, Vice - President, Treasurer, Assistant Treasurer and Secretary. The President and Vice -President must be Commissioners and cannot be the same person. The next step is to establish an official Depository. The Depository must be a federally or state charter institution within the State of Minnesota. The Depository is required to post a bond equal to the maximum amount to be deposited and conditioned for safekeeping and prompt repayment of deposits. This bond must be approved for form and amount by resolution of the Board. The Treasurer must also be bonded. The Treasurers bond must be conditioned for the faithful discharge of official duties and be in an amount equal to twice the amount estimated to be on hand but no more than $300,000. This bond must also be approved for form and amount by resolution of the board. ESTABLISH A BUDGET: The EDA must prepare an operational budget. The budget must be approved by the Board and presented to the City Council for approval. The budget should include all expected costs. When presenting the budget to the City Council the EDA should also present estimates of its financial needs and a request for any tax levy or bonding required of the city. APPROVE THE EDA BUDGET: Approval authority for the EDA budget rests in the City Council. FINANCING THE EDA: An EDA may be financed through all of the normal means that city projects are finances including general obligation bonds, revenue bonds tax increment financing and tax levies. General obligation bonds may be issued by the EDA with approval of the city. These bonds pledge the full faith and credit of the city. They require an election to approve the bond. Revenue bonds may be issued by resolution of the EDA. These bonds may only be used for limited purposes. They may be secured by a pledge of an lien on EDA revenue. If EDA revenue is pledged it cannot be used for any purpose other than repayment of the bond principle and interest. The bonds do not pledge the full faith and credit of the city. Tax increment financing is available to an EDA. The bonds may be general obligation or revenue bonds. Tax increment financing -by an EDA is subject to the strictures of Minnesota Statute 469.178. A city may levy taxes for the EDA. If the EDA requests a tax the city may levy the tax for the benefit of the EDA. This tax is limited to a maximum of 0.01813 percent of the taxable market value of the property taxed. The process for such levies is controlled by Minnesota Statute 469.107, Subdivision 2. The requirements include a noticed public hearing, adoption of a resolution and publication of the adopted resolution. This process is subject to referendum on timely demand of residents. _ MANAGE PROJECTS: After the EDA is organized and funded it may establish and manage projects intended to stimulate, expedite or facilitate economic development within the city. GENERAL MATTERS. The EDA only indirectly has the power to provide financing for the City Hall. To allow the EDA to provide such financing the City Council and the Board will have to make findings of fact that the new City Hall will support economic development. Use of general obligation bonds will require an election and cannot be used to repay funds already disbursed. General revenue bonding is available. The EDA may have the power to use other financing options but these are not clearly spelled out in the statute. Other cities have used EDA's for such purposes but in many cases this may have been situationally dependent. If the new city hall were located in a distressed neighborhood there would be a clear basis for the action. The likelihood of a challenge is small but it could be difficult to establish sufficient basis for the City Hall supporting economic development if there were a challenge. NON-PROFIT CORPORATION The use of a non-profit corporation as an intermediary is intended to accomplish several ends. It allows the City to avoid Levy limits, it provides a financing method for projects that cannot be bonded and establishes an independent entity for Liability purposes. The process is simple in concept but somewhat complex in execution. Conceptually the process involves establishing a non-profit corporation, transferring ownership of a property to the corporation and leasing the property back from that corporation The corporation finances the project by issuing Certificates of Participation to lending institutions with the receipts from the project as security. There are few restrictions other than those normally in place on City governments in the use of a non-profit as a middle entity. The following describes the steps in the non-profit process. IDENTIFY THE NEED: The first step in establishing the non-profit is identifying a need. This is a less of a major policy decision and may be based on rather "soft" needs. ESTABLISH THE NON-PROFIT: The non-profit is established by incorporation similar to any Minnesota business corporation. The controlling authority is Minnesota Statute 317A. Minnesota Statute 317A.101 states that a non-profit corporation may be formed for any legal activity. The Articles of the non-profit are similar inform to a business corporation and control the activities of the corporation. The contents of the Articles, required and optional, are laid out in Minnesota Statute 317A.111. The process is one of selecting a name, drafting Articles and registering the corporation with the Secretary of State. ORGANIZE THE NON-PROFIT: Once the non-profit is established it must be organized. The original Board of Directors (hereinafter "Board") may be named in the Articles. There must be at least three (3) Directors on the Board but there may be more. The term of office for the Directors may be fixed in the Articles or bylaws. It is advisable to do so in the bylaws since these are more easily amended. Directors must be selected with care since there is, -as with any corporation, a potential for conflict of interest. If the City Council was selected as the Board there would be a conflict since the corporation would be contracting with the City to lease the City Hall. The Board must meet and adopt bylaws. The bylaws control the operation of the corporation where the Articles are silent. They are important in that they can assign many duties not already I mposed by statute and can limit or expand the operating ability of the corporation. For these reasons the bylaws need to be fairly well thought out. The Board must then appoint corporate. officers. required officers include a President and a Treasurer. other officers may be appointed except as limited by the Articles or bylaws. The duties of the President and Treasurer are spelled out in Minnesota Statute 317A.305. The corporation can exist with or without members. Members can be admitted for consideration or for no consideration. The consent, wither actual or implied, of the person is required for membership. if members are allowed they are voting members. If there are voting members there must be at least one annual meeting. Membership rights can be made non-transferrable by the Articles of bylaws. Members are not generally liable for debts of the corporation similar to shareholders in a business corporation. ESTABLISH A BUDGET: Anon -profit corporation is required to keep books and to operate in a manner that serves the purposes of the corporation. There are fewer restriction than are imposed on an Economic Development Authority (hereinafter "EDA"). A budget should be prepared to control internal operations but the corporation is an independent entity and does not have requirements for reporting to the City unless imposed by the bylaws. TRANSFER OF PROPERTY TO THE NON-PROFIT: This is the most problematic part of this financing method. There are many methods of property transfer. The property could be transferred with a right to reentry in the City based on pay off of the notes on the property. The property could be sold to the non-profit with the funds coming from the non-profit financing and paid to the City as a cash payment. There are many other methods of transfer available and these will need to be investigated. FINANCING THE NON-PROFIT: The primary financing method in this case will be Certificates of Participation issued by the corporation to lending institutions. these pledge only the faith and credit of the corporation, not of the City. The security would be the revenue from the rents on the building. The interest will be higher than General Obligation Bonds but at current rates it should not be extreme. The corporation can also levy on members if any exist. MANAGE PROJECTS: After the corporation is organized and funded -it may establish and manage any projects within the limits of its Articles. GENERAL MATTERS: The most problematic matter is the selection of Directors. This should be done carefully to avoid potential conflicts. The question of members must also be addressed. Generally the non-profit corporation is a much more flexible entity than an EDA and can involve itself in a much broader range of activities. There are significantly fewer restrictions and conditions placed on its operation than an EDA. The majority of these are self imposed in the Articles or bylaws. Some restrictions should be imposed to control the corporations activities and increase the level of fiduciary responsibility to the City. These can be selected to provide the maximum benefit to the City while allowing freedom of operation to the corporation. William S. Radzwill Andrew J. MacArthur Michael C. Couri Stanley A. Ellison RADZWILL LAW OFFICE Attorneys at Law 705 Central Avenue East P. O. Box 369 Saint Michael, Minnesota 55376 (612) 4974930 (612) 497-2599 (FAX) November 11, Mr. Jerry Manville Security Bank Northwest 701 Central Avenue E. St. Michael, MN 55376 1992 Mei J. Dallman, Admin. Assistant John DeLaundreau, Financial Analyst Krishna DeLaundreau, Accounts Receivable Donna J. Matson, Receptionist/Clerk Re: City of Otsego proposed City Hall bond issue. Dear Jerry: I am writing to confirm our discussions regarding a proposed bond issue for the Otsego City Hall. In our tentative discussions, you thought that the board would accept a revenue bond from the Economic Development Authority (EDA) of the City of Otsego. The bond would not be a general obligation bond, but would be secured by the rentals paid by the City to the EDA for the use of the building, and would contain a non -appropriation clause such that if the City failed to appropriate funds for rental, the Bank would have the right to gain possession of the City Hall building and land (or other equivalent clause granting the Bank substantially the same powers). The bond would be a 15-year bond, bank -qualified under Section 265(b)(3) of the Internal Revenue Code, and will be issued with no rating, no discount and no financial consultant or fiscal fee. The bond will be registered with the Wright County Auditor. Simple interest would accrue at 6.0% annually, with interest payments twice annually and fairly level principal payments annually. The bond would be callable anytime after five years. The amount of the .bond would not exceed $500,000, but may be limited by the bank to 65% of the lower of cost or the appraised value of the building and land, although the Bank may be able to commit to a percentage higher than 65%. The land was purchased for approximately $120,000 in early 1992, and the building is expected to cost approximately $540,000 to construct. Mary Ipple of Briggs and Morgan will provide the bond opinion. Mr. Jerry Manville November 11, 1992 Page Two These terms were presented to the City Council on November 9, 1992, and the Council indicated its satisfaction in principal with the terms, although they would prefer a higher percentage than 65%. At this time I would appreciate it if you would obtain a commitment from the board that the Bank will provide financing on the terms discussed above, subject to the preparation of a debt service schedule detailing payment dates and amounts once a dollar figure for the bond is obtained, and subject to agreement as to the details of the issue. I am also enclosing a copy of the floor plan of the main floor. Plans for the second floor and for the building design generally are available in our office, but they are hard to copy due to their large size. Please feel free to contact Stan Ellison or Andy MacArthur if you wish to see all of the plans. Finally, I will be out of town for the rest of November. Stan Ellison of our office will be working on this bond issue. Feel free to contact him with any questions you may have. Sincerely, Michael C. Couri RADZWILL LAW OFFICE ET AUG 11992 FN Northwest Associated Consultants, �Inc.� A CU R B A N PLANNING DESIGN MARKET RESE A R C H lu i ►�LRA h►I 1 1►� I T0: FROM: DATE: RE: FILE N0a BACKGROUND Otsego Mayor and City Council David Licht/Dan Wilson 20 August 1992 Otsego - Economic Development 176.08 As you will recall, as early as last Fall, our office suggested to the City the need to pursue economic development measures. We believe that such efforts are essential for the City to be competitive in the attraction of business and industry. This mechanism is also a like means to address home extended businesses in the City. Finally, the City critically needs to expand its tax base so that the extent and level of public services can be maintained and expanded and means to fund such efforts can be sustained. With the completion of the updated Zoning Ordinance this last Spring, we felt it an appropriate time to begin active consideration of economic development matters. We did not, however, "push" this point on a high priority basis due to the volume of other matters demanding City Council attention. With the advent of the new City Hall, and the consideration of its financing, the need to establish an Economic Development Authority has, however, surfaced as an immediate priority which is somewhat out of sequence with a "typical" economic development program schedule. Needless to say, the City should move ahead and obtain the benefits which are available and establish an EDA as quickly as possible. In making this move, however, the perspective of a "comprehensive" economic development program should not be overlooked. We are therefore suggesting that the City Council also direct its attention to an overall program and actively begin to address the matter. So as to provide you with a better understanding of an economic development program, we have provided an outline and summary of an approach below. This is emphasized as a generalized statement 5775 Wayzata Blvd. • Suite 555 • St. Louis Park, MN 55416 • (612) 595-9636•Fax. 595-9837 which establishes a course of direction and action. It is based upon our considerable experience in Buffalo, Delano, Osseo, New Hope, Lakeville, Little Canada, Oak Park Heights, and others. ECONOMIC DEVELOPMENT PROGRAM = ORGANIZATIONAL It is critical that a community fully address and resolve its organization and approach to economic development at the outset of such activities. This will serve to "protect" public dollars plus place the City in a competitive, responsible position. Developer/ investors will shy away from the City should economic development programs not be defined or if time delays are encountered for organizational basics. With these considerations in mind, the following outline and comments are provided. I. GOALS AND OBJECTIVES A. Type of Development 1. Industrial 2. Commercial 3. Housing B. Geographic Targeting C. Identify Strengths for Development D. Identify Obstacles for Development A community addressing its economic development potential will want to first identify what it hopes to achieve through a series of detailed goals and objectives. It is important for the community to identify the obstacles that have prevented development from occurring to date. The community must identify which obstacles they have some control over and which ones they don't. The remainder of the plan will address the community's efforts to overcome specific obstacles to development. II. POLICY STATEMENT A. Community Awareness and Support B. Clear Policy Statement It is premature for a community to launch into major policy issues without first having educated the community at large and then developing their support. Policy issues on development should be settled in advanced of seeking interested developers. A task force or committee may be a convenient vehicle to achieve community participation. �a III. CITY ROLE AND RESPONSIBILITIES A. Financial Participation 1. Administrative and Promotional Budget 2. Project Participation a. Tax Increment Financing b. Special Assessments B. Risk Sharing The discussion of how a community chooses to participate in a project financially and to what degree the City is willing to assist risk quickly defines its policy toward economic development. These discussions are important and need to be conducted at the City Council level. Tax increment financing has been and will continue to be an integral financing element in economic development plans despite the State's efforts to curtail its use. The City Council will need to be familiar with the valuable financing tool. IV. ORGANIZATION STRUCTURE A. Economic Development Authority (EDA) 1. City Council or Community at Large Membership B. Task Force or Committee Some communities find that the use of a task force arrangement is an excellent way to identify individuals willing to make a long term commitment while providing a vehicle to educate and build community support. On an initial basis, we would strongly urge that the Mayor and City Council serve as the formal EDA. For planning purposes, a task force or commission should likely include representation from the community at large. A final structure of an EDA can subsequently be determined as part of the overall program plan. V. IMPLEMENTATION PLAN A specific plan designed to implement the goals and objectives would be established. The plan would be reflective of the resources that the community is willing to commit to the tasks identified. The plan would detail specific tasks for specific groups or individuals. pc: Jerry Perrault Elaine Beatty Larry Roshak Bill Radzwill TO: FROM: _ DATE: - RE: FILE NO. MEMORAND Otsego Mayor and City Council ��� � David Licht/Dan Wilson 20 August 1992 Otsego - Economic Development 176.08 In response to the need to move the creation of an EDA ahead, we have reviewed the materials- submitted by the Radzwill-Law Office. In our opinion, this provides the complete basics for the establishment of the Authority. The initial time schedule provided with -the original submission of materials -does, however, require updating.. Bob Kirmis of our office, in conjunction with Mr. Radzw111`s staff, has revised -the schedule accordingly and a copy is attached for your reference. pc: Jerry Perrault Elaine Beatty Andrew MacArthur 5775 Wayzata Blvd. Suite 555 595-9636 • MINNEAPOLIS, MN 55416 WHITE - ORIGINAL YELLOW - FILE COPY PINK - C FILE r�oR�mrn� TO: FROM: DATE: RE: FILE NO. David Licht Bob Kirmis 19 August 1992 Otsego - Economic Development 176.08 Attached please find a revised timetable for the Otsego Economic Development Authority. The table is identical to that contained in the informational packet prepared by Bill Radzwill's office but has been modified to reflect attainable dates for the listed tasks. According to Stan Ellison of Radzwill Law Office, the first two items on the revised timetable may be handled at a single meeting provided they are addressed in the order listed. If you have any questions or comments, please advise. CITY OF OTSEGO ECONOMIC DEVELOPMENT AUTHORITY TIlVIETABLE 8/24/92 Set the time and date (September 14th) for the public hearing required to establish the EDA. 8/24/92 Adopt a summary of the enabling resolution _for publication and authorize publication of notice. 8/31/92 Publish first notice of public hearing in newspaper 9/08/92 Publish second notice of public hearing in newspaper. 9/14/92 Conduct the public hearing, take comments, decide whether to adopt the EDA. Adoption of the EDA occurs upon passage of the enabling resolution.- .M ' adzwill Law Office '. 's! s. t. Michael, MN 55376 Ii { pinion for•. j, MJIWGI: . ECONOMIC DEVELOPMENT AUTHORITY OF OTSEGO, MINNESOTA RESOLUTION NO. DECLARING THE OFFICIAL INTENT OF THE OTSEGO ECONOMIC DEVELOPMENT AUTHORITY TO DISBURSE CERTAIN EXPENDITURES FROM THE PROCEEDS OF BONDS TO BE ISSUED BY THE AUTHORITY WHEREAS, the Internal Revenue Service has issued Tres. Reg. 3ec..1.103-18 providing that proceeds of tax-exempt bonds used to reimburse prior expenditures will not be deemed spent unless certain requirements are met; and WHEREAS, the Economic Development Authority expects to incur certain expenditures which may be financed temporarily from sources other than bonds, and reimbursed from the proceeds of a bond; and WHEREAS, the reimbursement rules apply to bonds issued after March 2, 19921 NOW, THEREFORE, BE IT RESOLVED BY THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF OTSEGO (THE "EDA") AS FOLLOWS. 1. The EDA reasonably intends to make expenditures for the project described in Exhibit A (the "Project"), and reasonably intends to reimburse itself for such expenditures from the proceeds of debt to be issued by the EDA in the maximum principal amount described in Exhibit A. 2. The EDA Treasurer is authorized to designate appropriate additions to Exhibit A in circumstances where time is of the essence, and any such designation shall be reported to the Board at the earliest practicable date and shall be filed with the official books and records of the EDA as provided in Section 3. 3. The resolution shall be maintained as part of the books and records of the EDA at the main administrative office of the EDA, and shall be continuously available during normal business hours of the EDA on every business day of the period beginning not more than 30 days after adoption of this resolution and ending on the last date of issue of any bonds issued to reimburse expenditures described in Exhibit A. 4. This resolution is an expression of the reasonable expectations of the EDA based on the facts and circumstances known to the EDA as the date hereof. The anticipated reimbursements set forth at Exhibit A are consistent with the EDA's budgetary and financial circumstances. No sources other than proceeds of bonds to be issued by the EDA are, or are reasonably expected to be, reserved, allocated on a long-term basis, or otherwise set aside pursuant to the EDA's budget or financial policies to pay such Project expenditures. The EDA has not adopted any allocation, budget, or restriction of moneys or adoption of a requirement or policy to reimburse a fund, the primary purpose of which is to prevent moneys from being available to pay an expenditure the EDA intends to reimburse with proceeds of a borrowing. 5. This resolution is intended to constitute a declaration of official intent for purposes of Tres. Reg. Sec 1.103-18 and any successor law, regulation, or ruling. 6. The allocation of proceeds of the bonds to be issued to any Project expenditures described in Exhibit A will be made not Later than the later of one year after the expenditure was paid or one year after the property was placed in service. 7. The Project expenditures described in Exhibit A are capital expenditures as defined in Tres. Reg. Sec. 1.150-4(h), including of issuance of the bonds to be issued in order to reimburse the Project expenditures. 8. Proceeds of the bonds issued to reimburse the Project expenditures described in Exhibit A will be deemed spent only when (1) an allocation entry is made on the books or records of the EDA with respect to the bonds; (2) the entry identifies an actual expenditure to be reimbursed, or where the Project is described as a fund or account, the fund or account from which the expenditure was paid; and (3) the allocation is effective to relieve the bond proceeds from restrictions on unspent proceeds under applicable documents and state laws. entity or entities possess simultaneously two or more of the following discretionary and non -ministerial powers with respect to the EDA: power to (1) remove without cause a controlling portion of the EDA Board, (2) select, approve, or disapprove a controlling portion of the EDA Board; (3) determine the EDA's budget or require the use of the EDA's funds or assets for the other entity's purpose; or (4) approve, disapprove, or prevent the issuance of debt obligations of the EDA. 10. None of the proceeds of the bonds issued to reimburse the EDA for the Project expenditures described in Exhibit A will be used within one year of the allocation (i) to refund another governmental obligation or (ii) to create or increase the balance in a sinking fund or replace funds used for such purpose, or (ill to create or increase the balance in a reserve or replacement fund or replace funds used for such purposes; or will be used at any time to reimburse any person or entity (other than the EDA) for expenditures originally paid with the proceeds of a EDA obligation (excluding a EDA inter -fund borrowing) ; unless (1) such amounts are deposited in a bona fide debt service fund or are used to pay debt service in the next one-year period on any EDA obligation other than the reimbursement bond, or (ii) the original issue was not reasonably expected to be used to finance the expenditure. 11. No action or inaction by the EDA with respect to the allocation of bond proceeds to reimbursement of Project expenditures will be an artifice or device to avoid, in whole or in part, arbitrage yield restrictions or arbitrage rebate requirements. 12. The procedures described in this resolution shall cease to apply to the extent not required by Tres. Reg. Sec. 1.103-18 or any successor law, regulation, or ruling. Approved by the Otsego Economic Development Authority this 12th day of October, 1992. is Deve pment Authority es EXHIBIT A TO OFFICIAL INTENT RESOLUTION ADOPTED OCTOBER 12, 1992 Estimated Project Cost breakdown Construction Engineering Legal and Bonding Authority Costs Land Acquisition $588,000.00 $ 12,000.00 $ 17,000.00 $ 3,000.0O $130,000.00 Total Project Cost $750,000.00 Less expenses paid by City and Not Reimbursed $210,000.00 TOTAL BONDING REQIIIRED $540,000.00 CITY OF OTSEGO, MINNESOTA RESOLUTION NO. DECLARING THE OFFICIAL INTENT OF THE CITY OF OTSEGO TO REIMBURSE CERTAIN EXPENDITURES FROM THE PROCEEDS OF BONDS TO BE ISSUED BY THE CITY WHEREAS, the Internal Revenue Service has issued Tres. Reg. Sec. 1.103-18 providing that proceeds of tax-exempt bonds used to reimburse prior expenditures will not be deemed spent unless certain requirements are met; and WHEREAS, the City expects to incur certain expenditures which may be financed temporarily from sources other than bonds, and reimbursed from the proceeds of a bond; and WHEREAS, the reimbursement rules apply to bonds issued after March 2, 1992; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OTSEGO (THE "CITY") AS FOLLOWS: 1. The City reasonably intends to make expenditures for the project described in Exhibit A (the "Project"), and reasonably intends to reimburse itself for such expenditures from the proceeds of debt to be issued by the City in the maximum principal amount described in Exhibit A. 2. The City Clerk is authorized to designate appropriate additions to Exhibit A in circumstances where time is of the essence, and any such designation shall be reported to the Council at the earliest practicable date and shall be filed with the official books and records of the City as provided in Section 3. 3. The resolution shall be maintained as part of the books ILA records of the City at the main administrative office of the City, and shall be continuously available during normal business hours of the City on every business day of the period beginning not more than 30 days after adoption of this resolution and ending on the last date of issue of any bonds issued to reimburse expenditures described in Exhibit A. 4. This resolution is an expression of the reasonable expectations of the City based on the facts and circumstances known to the City as the date hereof. The anticipated reimbursements set forth at Exhibit A are consistent with the City's budgetary and financial circumstances. No sources other than proceeds of bonds to be issued by the City are, or are reasonably expected to be, reserved, allocated on a long-term basis, or otherwise set aside pursuant to the City's budget or financial policies to pay such Project expenditures. The City has not adopted any allocation, budget, or restriction of moneys or adoption of a requirement or policy to reimburse a fund, the primary purpose of which is to prevent moneys from being available to pay an expenditure the City intends to reimburse with proceeds of a borrowing. 5. This resolution is intended to constitute a declaration of official intent for purposes of Tres. Reg. Sec 1.103-18 and any successor law, regulation, or ruling. 6. The allocation of proceeds of the bonds to be issued to any Project expenditures described in Exhibit A will be made not Later than the later of one year after the expenditure was paid or one year after the property was placed in service. 7. The Project expenditures described in Exhibit A are capital expenditures as defined in Tres. Reg. Sec. 1.150-4(h), including of issuance of the bonds to be issued in order to reimburse the Project expenditures. 8. Proceeds of the bonds issued to reimburse the Project expenditures described in Exhibit A will be deemed spent only when (1) an allocation entry is made on the books or records of the City with respect to the bonds; (2) the entry identifies an actual expenditure to be reimbursed, or where the Project is described as a fund or account, the fund or account from which the expenditure was paid; and (3) the allocation is effective to relieve the bond proceeds from restrictions on unspent proceeds under applicable documents and state laws. 9. No entity or entities possess simultaneously two or more of the following discretionary and non -ministerial powers with respect to the City: power to (1) remove without cause a controlling portion of the City Council, (2) select, approve, or disapprove a controlling portion of the City Council; (3) determine the City's budget or require the use of the City's funds or assets for the other entity's purpose; or (4) approve, disapprove, or prevent the issuance of debt obligations of the City. 10. None of the proceeds of the bonds issued to reimburse the City for the Project expenditures described in Exhibit A will be used within one year of the allocation (1) to refund another governmental obligation or (ii) to create or increase the balance in a sinking fund or replace funds used for such purpose, or (iii) to create or increase the balance in a reserve or replacement fund or replace funds used for such purposes; or will be used at any time to reimburse any person or entity (other than the City) for expenditures originally paid with the proceeds of a City obligation (excluding a City inter -fund borrowing); unless (i) such amounts are deposited in a bona fide debt service fund or are used to pay debt service in the next one-year period on any City obligation other than the reimbursement bond, or (ii) the original issue was not reasonably expected to be used to finance the expenditure. il. No action or inaction by the City with respect to the allocation of bond proceeds to reimbursement of Project expenditures will be an artifice or device to avoid, in whole or in part, arbitrage yield restrictions or arbitrage rebate requirements. 12. The procedures described in this resolution shall cease to apply to the extent not required by Tres. Reg. Sec. 1.103-18 or any successor law, regulation, or ruling. Approved by the City Council of City of Otsego this 17th day of August, 1992. CITY OF OTSEGO Attest: n y C Date of Declaration E%HIBIT A TO OFFICIAL INTENT RESOLUTION ADOPTED SEPTEMBER 81 1992 Description of Project Estimated Project Costs: Construction $ Engineering ng $ Legal and Bonding $ Total Costs $ Maximum Principal Amount of Debt to Reimburse Project Costs EXHIBIT A TO OFFICIAL INTENT RESOLUTION ADOPTED OCTOBER 12, 1992 Estimated Project Cost breakdown Construction Engineering Legal and Bonding Authority Costs Land Acquisition Total Project Cost $750,000.00 Less expenses paid by City and Not Reimbursed $210,000.00 TOTAL BONDING REQIIIRED $540,000.00 OTSEGO ECONOMIC DEVELOPMENT AIITHORITY A RESOLIITION ESTABLISHING A NEED FOR BONDING IN SUPPORT OF THE OTSEGO COMMUNITY CENTER REDEVELOPMENT PLAN WHEREAS, the Otsego Economic Development Authority (hereinafter "Authority) has reviewed and accepted the Otsego Community Center Redevelopment Plan (hereinafter "Plan"), and WHEREAS, the Authority has established a need for funding to complete the Plan; and WHEREAS, implementation of the Plan will result in certain revenues to the Authority; and WHEREAS, those said revenues are available to pledge to bonds issued to fund the Plan; NOW THEREFORE BE IT RESOLVED, that the Authority issue revenue bonds in the maximum amount of $ 540,000.00; and BE IT FURTHER RESOLVED, that the monies resulting from the said bond issue be utilized to fund the Plan; and BE IT FURTHER RESOLVED,that the revenue generated by the implementation of the Plan be pledged to repayment of said bonds. Passed this day of 1992 by the Otsego Economic Development Authority Board of Commissioners. President ATTEST: Secretary EDA9A CITY OF OTSEGO COUNTY OF WRIGHT STATE OF MINNESOTA RESOLIITION IN SIIPPORT OF BONDING BY THE OTSEGO ECONOMIC DEVELOPMENT AUTHORITY BONDING FOR THE OTSEGO COMMUNITY CENTER REDEVELOPMENT PLAN WHEREAS, the Otsego Economic Development Authority (hereinafter "Authority) has reviewed and accepted the Otsego Community Center Redevelopment Plan (hereinafter "Plan"); and WHEREAS, the Authority has established a need for funding to complete the Plan; and WHEREAS, implementation of the Plan will result in certain revenues to the Authority, and WHEREAS, those said revenues are available to pledge to bonds issued to fund the Plan; and WHEREAS the City Council of the City of Otsego (hereinafter "Council") has reviewed the Plan; and WHEREAS, the Council has found that implementation of the Plan will materially benefit the City; and WHEREAS, the Council has found that bonding in support of the Plan is necessary to implementation of the Plan. NOW THEREFORE BE IT RESOLVED, that the Council supports and authorizes the issuance of revenue bonds in the maximum amount of $ 540,000.00 by the Authority. Passed this City Council. ATTEST: day of Jerome Perrault, City clerk EDA9A 1992 by the Otsego Norman Freske, Mayor W W ^! I' o � � 4 y p � �24 Wa �. � y 1 h � 4 zz ' � �/✓E OF THE Sou N 3S0 FEET I QOF TVE NO.i TN jla4F OF THE NO.QTNW6ST VRR TE/t OF S<C. 20, PROPERTY DESCRIPTION I'OR E3UILDIIJG SITE: I The north 535.00 feet of the south 885.00 feet of the east 460.00 feet of the north half of the Northwest Quarter of Section 20, Township 121, Range 23, Wright County, Minnesota. Subject to N.E. Nashua Avenue ti 0 Gle Oss %JRE.9 = 5.8955 17c, ch 2oR0 1OZE19 = 0,8833 FIcl o a NEr R2E7a = S.o/2.Z PC. t A W j a � S y h n `l^E I hereby certify that this survey, plan or report was prepared by me or under my direct supervision and that I am a duly Registered Land Surveyor under the laws of the State of Minnesota. 12263 ii2sl9z-- Ja M. Winter, R.L.S. lieg. No. Date o r+oaiz=��� �K6TCN ANO G_lE"SCRIP%/OnI SHEET /"= so' Hal<anson of OrSF_60 C/ry yq�,�, Flier-/ / DRI,WN BY �„ _ Anderson �ayY Assoc., Inc. Foy UI U R L Xin er Englnecm.Surveyom& ands xpe Architects C/Ty OF 07-SEGO / J rnu 222 Monroe Stm t.Anoka. Minnesota 55303 612/427-5860 °1m /IN /'25-9Z