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11-27-1995 CCCITY OF OTSEGO Business Database Intern Report Prepared in conjunction with The Otsego Economic Development Authority and The Economic Development Authority Advisory Committee SUMMERNALL 1995 CITY OF OTSEGO Business Database Intern Report Prepared in conjunction with The Otsego Economic Development Authority and The Economic Development Authority Advisory Committee SUMMERNALL 1995 TABLE OF CONTENTS Subject Pa9� Introduction...............................................................................................................1 Table III -Location Factors.......................................................................................13 Stepsof Actions........................................................................................................1 Table IV -Rating of Factors......................................................................................14 Reviewing the Literature......................................................................................1 Table V -Public Services..........................................................................................15 Planof Action.......................................................................................................2 Table VI -Business Changes...................................................................................16 Observation..........................................................................................................2 Secretaryof State................................................................................................4 Administering the Survey.....................................................................................4 SurveyResponse......................................................................................................5 SurveyFormat...........................................................................................................8 SurveyResults..........................................................................................................9 GeneralInformation ...........................................................................................10 Employment.......................................................................................................12 LocationFactors................................................................................................12 PublicServices..................................................................................................15 BusinessChanges.............................................................................................16 Miscellaneous....................................................................................................17 AuthorNotes...........................................................................................................18 Summary.................................................................................................................20 Tables TableI -Total Responses...........................................................................................6 Table II -Identified Businesses...................................................................................7 Table III -Location Factors.......................................................................................13 Table IV -Rating of Factors......................................................................................14 Table V -Public Services..........................................................................................15 Table VI -Business Changes...................................................................................16 Attachments Exhibit A -Observation Grids Exhibit B -Business Survey Exhibit C -Cover Letter Exhibit D -Identified Businesses Graphs Established Dates Legal Entities Business Types Market Area Number of Employees INTRODUCTION The purpose of this report is to identify, survey, and describe businesses within the City of Otsego. The findings from this report will aid the Economic Development Authority (EDA) and Economic Development Authority Advisory Committee (EDAAC) in future economic development and economic planning decisions. The format of this report will be to describe each step of the internship. Each step will be examined to show the importance of each step. The steps include reviewing background and historical information, formulating a plan of action, observing the city, administering a survey to all identified businesses and observation sites, and to interpret the results from the returned surveys. In addition, this report will present the author's ideas for the direction Otsego's future economic development strategies. Also, the author will review the internship process which will include difficulties and benefits from this experience. STEPS OF ACTIONS REVIEWING THE LITERATURE The first step of the internship was to review background and historical information. In order to understand the present situation with home extended, home occupations, commercial, industrial, and agricultural businesses, the author had to review all related zoning ordinances. The two important ordinances were home occupations (Section 28) and home extended businesses (Section 29). Reviewing these ordinances helped to understand what businesses were permitted and those which were illegal. In addition, the foundation in understanding the principles of this internship was found in the literature. After reviewing the past EDAAC, EDA, Planning Commission, and City Council minutes, the foundation was completed to understand the history of home extended and home occupations businesses. The next step of the internship was to formulate a plan of action. The plan of action was designed to encompass the internship requirements for both St. Cloud State University and the EDAAC. The plan consisted of the required elements which assisted in the major steps of the internship. The elements of importance were creating an initial survey database, report spreadsheets, collecting research, and gathering/reviewing city street maps. These elements were essential in structuring and organizing the information gathered during the early stages of the internship. A survey database was created to store the survey information. The database format was identical to the business survey which was administered to all identified businesses. The creation of report spreadsheets was to help organize time and information. In addition, these spreadsheets were created for the purpose of weekly reports. Collecting research proved to be a vital element of the internship. Research was gathered from local newspapers, state government agencies, and city government files. The final elements were gathering and reviewing city street maps. Street maps were gathered and reviewed to determine observation grids. Eight observation grids were developed to coincide with the Planning Districts in Otsego's Comprehensive Plan. The third step of the internship was to observe the city for potential business operations. Observing was the most time consuming and difficult step. The process of observing like many other aspects of the internship had multiple steps. The first step in observing was to create an observation database. This database was developed to store relevant information about a plot of land. This database was useful when entering data regarding business operations at a certain residence. The second step of observing was to address the issue of thoroughness and consistency during observing. To address this issue, every physical address was accounted for during the 2 observation process. To ensure the thoroughness and accuracy of observing each physical address, a obervation map was created by using the County Plat Maps. Although this was extremely costly in terms of time, the results were integral to the results of the internship. The third step of the observation process was to organize each physical address into a numeric geographic sequence. The eight observation grids were the source for the numeric and geographic sequence. Each observation grid was numbered one through eight (see Exhibit A). The fourth step was to sort streets within each grid with location sequence. This was of extreme importance to efficiently and effectively observe each physical address. The fifth step was to begin observing each grid. The act of observing was accomplished by driving by each physical address. For each physical address, a predetermined criteria was established to monitor for home extended and home occupation business operations. The criteria was based on medium to large accessory buildings, storage sheds, large tool sheds, machine sheds, display signs, and the observer's personal discretion. If a physical address met the criteria for possible business operations, a "yes" verification was indicated on the observation notes for the particular address. The total number of "yes" verifications from observing was 165 from the eight grids. After completing the observation of each physical address in the city, "yes" verifications were identified and ready for the final step in the observation process. The final step was to input the 165 "yes" verifications into the observation database. The observation database was created for accessibility for later stages. The 165 "yes" verifications were inserted into the database along with the other relevant information. Once all "yes" verifications were in the database, a list was formulated from observing to indicate all the potential businesses. The next step was a significant component in achieving the net results. A suggestion was made to contact the Minnesota Secretary of State to obtain registered businesses which were operating in Otsego. The Office of the Secretary of State compiled two lists by zip code. The zip codes included 55330, 55301, 55352, 55374, 55376, and 55327. Because Otsego includes all of these zip codes which include other surrounding cities, it was necessary to sort the businesses operating in Otsego. The two lists included business names and addresses. The two lists consisted of all registered business under assumed names and corporate entity findings. The lists produced an additional 83 businesses. This was a significant number of businesses which would be beneficial in obtaining survey information. The business survey was to be administered to all identified businesses and "yes" verifications from the observation database. The purpose of this survey was to identify potential businesses, but more importantly, to obtain information from these potential and identified businesses. The original survey was developed by the Minnesota Department of Trade & Economic Development. Survey questions were chosen by members of Otsego's Economic Development Advisory Committee along with the author. The selection process was based on the significance of each question in relation to future planning information. Members of the EDAAC selected questions from the original survey and drafted an outline of questions which where implemented into the final survey format. The survey was divided into six sections. The sections were business identification, employment, location factors, public services, business changes, and short answer response section (see Exhibit B). Administering the survey was the second most time consuming aspect of the internship. Administering the business survey consisted of two primary sections. The first section addressed the necessary preparation to mail the business surveys. A total of 256 surveys were prepared to be mailed. A cover letter was attached to explain the survey in a El I positive demeanor of the survey to eliminate the negative perception attached to local government actions (see Exhibit Q. Mailing labels were developed to help in easing the task of mailing the large number of surveys. The second section of administering this survey was to find a system of monitoring results. Monitoring the survey was accomplished by a numeric coding system. The code system was designed to determine which surveys were returned or not returned. The code system combined the necessary components in order to discover which surveys were returned. The components of the system were plot numbers, mailcode numbers, date of first mailing, response from first mailing, date of second mailing, and response from the second mailing. The plot number was the street number of each physical address. The mail code number was a number to identify each physical address. Mail code numbers were located directly below the zip code for each survey. Mail code numbers ranged from 51001 to 51259. The surveys were sent at different dates. The dates of the first mailings were September 1, 6, 8, 12, and 25. The dates of the second mailings were September 19 and 20. The different dates were a result of survey categories (observation database, assumed names, corporations, commercial area, and miscellaneous address problems). Response from the first mailing was a component to indicate if there was a returned survey. If a resident or business returned their survey, a " 1" was placed in the column. If nothing appeared in the space, this indicated that there was no response. The code system enabled an extremely effective and efficient method of monitoring returned results. SURVEY RESPONSE Surveys were administered to all identified businesses. As mentioned earlier, identified businesses were compiled from observation notes and two lists produced by the Secretary of State. Surveys were sent to 257 potential business owners in Otsego. The total time of this process was between September 1 through October 1. The time to voluntarily respond was one week. If there was no response after a week, a second request was sent. 5 The response rate was consistent for each request. The first request produced 64 responses. The second request produced nearly identical results. The number of returned second request surveys were 63. The percentages of returned first request surveys were 25 percent and 24 percent for second request surveys. The total number of returned surveys was 127. Overall, the total response percentage was 49 percent. Results can be categorized into three sections; observation, assumed names/corporations, and commercial. The observation section was the businesses identified through observing. The total number of returned first request surveys was 40. The total number of returned second request surveys was 39. The total number of returned surveys from the observation section was 79 (see Table I). The second section was assumed names and corporations. This section consisted of all businesses which were operating under assumed names and corporations. The total number of responses from the first request was 20 and 23 from the second request. The total amount of returned surveys was 43 which lead to a 17 percent sectional response rate (see Table II) The final section was the commercial/industrial area of Otsego. In this section, the total number of first request returned surveys was four and one second request returned survey. This average sectional percentage rate was 50 (see Table I). Table I Section 1st request 2nd request Total Total Surveys Sent Section Percenta a Total Percentage Observation 40 39 79 165 48 31 Assumed Names 20 23 43 82 52 17 Commercial 4 1 5 10 50 0.02 JQtAIj 64 63 127 257 50 16 The total percentage was vital to the overall results. A larger response rate would give the results more credibility. Credibility was achieved in the total response rate of 49 percent. rel Business identification was an essential element of the survey results. Possible future economic development decisions maybe based on these survey results. Identified businesses can be analyzed per each section . The process of observing was time consuming, but the results were worth the time. Surveys were sent to 165 potential business operations. As reviewed in the previous section, 79 residents returned the business survey. From the 79 surveys returned, 29 indicated either operating a home occupation, extended, or agricultural business. The 29 identified businesses gave way to percentage rate of identified businesses from the returned surveys (see Table II). Table II identified Returned Total Sent Section % %of Total Observation 29 79 165 37 18 11 Assumed Names 29 43 82 67 35 11 Commercial 5 1 5 10 100 5 0.02 TQM 63 1 127 257 68 19 7 The total number of surveys sent for the observation section was 165, thus producing an 18 percent rate of identified businesses. The most contributing factor to the process was the Secretary of State's listings. The information produced a significant number of businesses operating within Otsego. A total of 82 surveys were sent to the registered businesses. Forty-three surveys were returned and 29 verified business operations. This response and identification was the largest by percentage. The identification rate was defined as the total number of identified businesses divided by the total number of surveys returned. The identification rate was 67 percent. This was the largest and most significant of all the sections. The percentage of total number of surveys sent from the assumed names and corporation lists which identified themselves as a business was 35 percent. This percentage was nearly double of the observation section (see Table II). The results from this section was important to the overall result. The final section which was administering surveys, not to be identified as a business, but to gain insight and information was the commercial/industrial section. The commercial/industrial section was ten surveys and five returned their surveys. Since commercial/industrial businesses have already been identified, the five commercial businesses were incorporated into the total number of identified businesses. The identification rate does not apply, but the percentage of total commercial/industrial business surveys sent to the number of returned was 50 percent (see Table II). Overall, the identification results was strong and positive in obtaining the necessary objectives. The total number of participating identified businesses was 63. A total number of identified businesses operating in Otsego was 66 (see Exhibit D). The total number of surveys sent was 257. The total identification rate was 50 percent. The percentage from the total number of surveys sent with respect to identified businesses was 25 percent. These strong percentages show a willingness among the business community to work with local government. SURVEY FORMAT The survey can be categorized into six parts. The first part was general information. The information consisted of the business name, owner, address, city, zip code, and telephone number. In addition to the above questions, it asked the year of establishment, location of headquarters, and if the business was a primary occupation. There were three subcategorize which were included into the general information. The three subcategories were legal entity, primary business type, and principal market area. The second component was employment. This part focused on the number and differential levels of employment. The third component was location factors. The questions addressed the advantages and disadvantages which would encourage or discourage relocation or expansion. This component also listed 15 factors in which the business was to rate the importance in considering remaining, expanding, or relocating. The fourth component was public services. This section was developed to provide information about the services which the city does or does not provide. The question listed 11 public services and the business were to rate the services within Otsego. The fifth component was business changes. In the business changes section, questions were primary concerned with potential business changes in the next two years. The business changes were change mix of goods and services, expand plant facilities, relocate, modernize production technology, and make other capital improvements. The remaining questions focused on relocation. These questions asked where, when, and what are the principal reasons for relocating outside of the city. The final section was an opportunity for short answer responses to government projects and officials. This section contained four questions. The first question asked if there were any businesses or services lacking in the community which would benefit their business. This question further asked if the respondent had any difficulty working with a specific city department and to explain the problem and department. The second question asked the respondent if they would like to speak to a city representative in order to work on a solution to the problem. The third question inquired about the single most important project that could be undertaken to make the community a better place to operate a business. The fourth question gave the respondent the opportunity to give additional comments or any pertinent information about the survey and city government. SURVEY RESULTS Results of the survey were produced by the 63 identified businesses. The survey answers were complete and insightful. Bias was evident in certain statistics because of the non-exclusion of businesses which did not respond to a question. Survey results will be analyzed by sections. 9 GENERAL INFORMATION The first section was general information. The first question was the year in which the business was established. The responses varied from business to business. The responses was categorized into five year intervals (see Established Date graph). The number of businesses established between 1995 and 1990 was 30. Between 1989 and 1985, 11 businesses were established. The number of businesses established between 1984 and 1980 was eight. Between 1979 and 1975, four businesses were established. Between 1974 and 1970, four businesses were established. The years 1969 and 1955 produced five businesses. The remaining four businesses were established between 1920 and 1885. The largest number of businesses were established between 1990 and 1995. The second largest number of businesses were established between 1985 and 1989. The encouraging aspect from this information was the growing number of businesses. The number of businesses established between 1985 and 1995 doubled from 11 to 15. This is a strong indicator of a large potential business base with opportunity for future economic development. The second question was if the business was a primary occupation. The number of individuals indicating that their business was their primary occupation was 41. In comparison, the number of individuals which indicated that their business was not the primary occupation was 21. Individuals that are operating a business as their primary occupation was nearly a 50 percent increase. This indicated a growing number of businesses operating within Otsego. Established and operating businesses helped to create a sense of community along with potential partnership between businesses and local government. The third question asked if the address on the survey was the business headquarters. The number of "yes" responses clearly out number the "no" responses. The number of businesses with their address as their headquarters was 57. On the other hand, the number of businesses with headquarters with a different address was five. This figure was biased. Chain corporations were involved in this survey, many have headquarters that are different than their operating address. 10 This creates a bias in the number of "no" responses. As a result, the number of businesses that have their headquarters in Otsego are larger. From this information, it can be concluded that a majority of businesses are located in Otsego. The fourth question involved legal entities. The question asked the respondent to select a proper legal entity for their business. The question offered six legal entity types; corporation, partnership, sole proprietor, nonprofit corporation, cooperative, and other. The result indicated three legal entity types and three were not chosen among the 63 identified businesses. The largest legal entity response was sole proprietor. Thirty-three indicated their business was a sole proprietor. The second largest response was corporation with 25 businesses. The smallest response was partnership which produced only five businesses (see Legal Entities graph). The fifth question asked for business classifications. Respondents could choose between nine different primary types of businesses; service, manufacturing, wholesale trade, agriculture, construction, finance/insurance/real estate, and transportation/utilities. Service businesses compiled 27 responses which was the largest business type. Manufacturing was the second largest with eight responses. The third largest types of businesses was wholesale trade and agriculture with six responses. The fourth largest type of businesses was construction and finance/insurance/ real estate with five responses. The smallest classification was transporatation/utilities with four businesses (see Business Type graph). Although service businesses was the dominant business type, the other types of business are evenly distributed, thus causing a more diverse business environment. This will prove most beneficial in attracting private and public capital investment. In addition, a diverse business environment will be benefical to the local community. The last question in the general information section was concerned with business market areas. The question focused on the percentage of local, state, national, and international. market areas. Local market area was substantial in terms of market area percentage. Local maket area average was 72 percent. State market area average was 20 percent. National market area average was .05 percent. The smallest number followed the international market area of .03 percent (see Market Area graph). These statistics offer insight into the location of the market in relation to the businesses. Ninety-two percent of the average market areas was local and within Minnesota. This substantial percentage points to the importance of market area. This maybe useful in determining potential industrial park sites and/or commercial building sites. One can conclude the importance of location with respect to each businesses market areas. EMPLOYMENT The next section of the survey was employment. This section only contained one question. The question asked for the number of persons employed at the facility. The focus was on full and part time, permanent, seasonal peak, and the number of employees one year from the present date. The total number of employees is 245. The number of full time employees was 109. The sum of part time employees was four. Permanent employees and seasonal peak was 36 (see Employees graph). The total number of employees a year ago was 145. Comparing the current number of employees to the number of employees a year ago indicates a large growth of employment. Employment is an encouraging indicator of business growth. Business growth helped create employment for an additional 100 persons from the prior year. This statistic is encouraging for many reasons, but the primary reason is the support provided from local businesses. It is evident that if provided necessary services, businesses operating in Otsego will benefit all involved parties. LOCATION FACTORS The first question of the location factor section asked the respondent to specify up to four factors they regard as advantages and disadvantages which would encourage or discourage expansion or relocation within the community. From the responses, the author chooses to list the ten most frequent responses (see Table III). 12 Table III Advanta f Responses Disadyantagps Humber of Re Location 12 Location 7 Market Access 6 Land Price 5 Residence 5 —City Leadership 5 Community 5 Taxes 5 Land Availabilty 5 Facilities 4 Growth 4 Ordinances 4 Labor 4 Non-support for businesses 3 Roads 4 Market Access 3 Po ulation 2 City Contracted Services 3 Land Price 2 lPopulaton 3 The most frequent advantage from the survey was location with 12 responses. Market access was the second frequent with six responses. The third, fourth, and fifth frequent responses were business operation within residence, community, and land availability with five responses. The sixth, seventh, and eighth frequent was growth, labor supply, and roads with four responses. The ninth and tenth most frequent responses were population and low land prices with a total of two responses for each. The most frequent disadvantage was location with seven responses. The second, third, and fourth disadvantages was land price, lack of city leadership, and taxes with five responses. The fifth and sixth disadvantages were lack of facilities and city ordinances each having four responses. The seventh, eight, ninth, and tenth most frequent responses were non-support for businesses, market access, city contracted services, and population each have a total of three responses. The importance of these advantages and disadvantages can be examined by each section. The advantages are factors that cannot be easily managed or controlled, but the disadvantages are factors which can be controlled by local government actions. Out of the ten most frequent responses, six factors can be easily managed or controlled by local government. The six factors are lack of city leadership, taxes, lack of facilities, ordinances, non-support for businesses, and city contracted services. If local government could make a commitment in changing these 13 disadvantages into advantages, the attitude of the business community would help in achieving short and long term economic development objectives. The second question allows the respondent to rate the importance of 156 factors in considering remaining, expanding, or relocating. A number represented the respondent importance he/she placed upon a given factor. A number "1" represented very important. A number "2" represented important. A number "Y represented somewhat important. A number "4" represented not important. Table IV listed each factor and the number of responses for each value of importance for the given factor. Table IV Factors Very Important Im ortant Somewhat Important Not Important 1 2 3 4 Labor Skill 9 16 4 22 Labor Availability 7 15 8 20 Roads 16 19 8 9 Land/facility Space 28 12 4 8 Permit Processes 26 16 4 6 Public Services 11 13 12 16 Utilities 13 16 13 11 Govemment Programs 4 6 11 31 Business Services 7 9 19 17 Market Access 14 16 7 15 Supply Access 8 10 10 23 Quality of Life 19 18 5 9 Property Taxes 31 12 3 5 Local Education 14 11 9 18 Higher Education 7 11 12 22 The results from this table can be interpreted by examining the number of responses with respect to its value. There are seven factors which would cause the identified businesses to either remain, expand, or relocate. The seven factors are roads, land/facility space, permit process, utilities, market access, quality of life, and property taxes. The remaining factors were arbitrarily insignificant based on the value placed upon each factor. The relative importance of this 14 information is to obtain the necessary information to plan for future short and long term economic development and planning. Public services are important in business operations. The public service section was an opportunity for businesses to indicate if Otsego's services and facilities are either adequate or inadequate for current or future needs. A total of 11 public services were listed. As in the previous section, a number represented a value. A number "1" represented adequate. A number "2" represented inadequate. A number "3" represented a do not know option. Table V indicates the results from this section. Table V Do Not Know 1 2 3 Roads 54 3 2 Sewers 39 11 8 Water 40 11 7 Police Protection 42 7 10 !Fire Protection 46 4 9 Solid Waste Disposal 47 5 7 Emergency Medical Services 45 4 10 Electronic/Natural Gas Services 50 4 5 School System 52 1 6 Facility Space Availability 38 8 13 Land Availability 38 9 12 1+ Total 491 67 89 Overall, the 11 public services were rated adequate by the identified businesses. The sum of the adequate responses was 491. The sum of the inadequate responses was 67. The sum of the do not know responses was 89. It is very evident that identified businesses believe the public services are adequate for their current and future needs. 15 Business changes section was designed to obtain future business plans. Table VI summarized the responses to first question. The first question directed itself toward changes a business may plan to execute in the next two years. The first change was to change mix of goods and services. The results were 50 businesses indicated no future plans and nine indicated plans to change the mix of goods and services. The second change was to expand plant facilities. Fifty- two indicated no such plans and seven indicated plans to expand. The third change was relocate. The number of "no" responses was 46 compared to 13 "yes" responses. The fourth change was to modernize production technology. The number of "no" responses was 51 compared to eight "yes" responses. The final business change was to make other capital improvements. The results showed 43 indicated no future plans and 16 indicated plans to make other capital improvements (see Table VI). Table VI Business Chan= yrs -ND Change Mix of Goods and Services 9 50 Expand Plant Facilities 7 52 Relocate 13 46 Modernize Production Technology 8 51 Make Other Capital Improvements 16 43 The second question was directed toward a respondent if they indicated relocating was a plan in the next two years. The second question asked if the respondent indicated plans to relocate, where would be the next site. The options presented were within Otsego, within Wright County, within Minnesota, or other. From the 13 businesses which indicated plans to relocate, two would relocate within Otsego. Four businesses would relocate within Wright County. Six businesses would relocated within Minnesota. The last option was to relocate other than the three previous choices. One business indicated a desire to relocate other than Minnesota. 16 The third question examined the relocation response, but asked the question when would the business relocate. The choices where within six months, six months to one year, and one year to three years. The number of businesses that plan on relocating within six months was one. The number of businesses that plan on relocating between six months and one year was four. Seven businesses plan on relocating between one year and three years. The fourth and final question examines the relocation response . The question asked the principal reasons for relocating outside of Otsego. Four reasons were given to answer the questions. The four were labor supply/ cost, city services, inadequacy of land/facilities, and incentives from other cities or states. One business indicated that labor supply/cost would be the principal reason for relocating outside Otsego. City services would cause three businesses to relocate. Inadequacy of land/facilities produced four additional business to relocate. Incentives was the largest reason to cause five businesses to relocate outside Otsego. The miscellaneous section consisted of short answer questions. The first question asked if there were any businesses or services lacking which would compliment their business. In addition, it asked if the respondent has had any difficulty working with any specific city department. If yes, what was the problem and with what department. The answers varied depending on the particular part of the question was being answered. Two businesses indicated that a lumber yard and post office would be most beneficial. Problems of the identified businesses were Otsego's non -commitment to encourage economic development, zoning regulations, city planner and engineer are difficult to work with, a lack of business facilities, and to follow through on promised issues. The second question asked if the respondents would speak to a city representative in order to work on a solution to the problem. Twenty respondents would not like to speak and three would like to speak to a city representative. 17 The third question asked each respondent to name the single most important project that could be undertaken to make Otsego a better place to operative a business. As was the case in the first question, answers varied by respondent. The most frequent answers were to begin working on basic infrastructure, government needs to work with businesses, to have a city committed to economic development, maintain an unvarying level of taxes, and to create an industrial park. Single response answers were to secure state funding for start up and expanding businesses projects, limit or reduce restrictions, zoning to permit housing expansions, invest in bike trials and sidewalks, and a larger percentage of medium to upper price housing. The final question in the miscellaneous section and in the survey asked for additional comments. The answers provided for this question have already been addressed in the previous questions. For example, city planner and engineer are difficult to work with, government needs to be committed to economic development, too many rules, maintain a constant level of taxes, and to work with home extended and home occupations businesses. AUTHOR NOTES The survey was a useful tool in obtaining information to use for future economic development and planning. There are three areas of interest which should be addressed. The first area is the growing distrust among the business community with respect to local government and it's actions. Referring back to the result of a short answer question in the miscellaneous section. The question asked if businesses would like to speak to a city representative to find a solution to the problem and 87 percent of the identified businesses would not like to speak to a city representative. This is strong evidence of the lack of trust in local government shared among the business community. In addition, referring back to Table IV, government programs were not considered important by 60 percent of the businesses. This suggests an area that needs to be addressed in order to achieve a better relationship between local 18 government and the business community. A proposed solution is use these findings in order to achieve common goals with local businesses. With the publication of this report, the EDAAC and the local government are better equipped to understand the attitude of the business community. The second area of interest is the direction of an industrial park. It is the author's opinion based on the survey findings that an industrial park can be achieved by examining the areas of concerns for the business community. The two factors which will be examined are market areas and established dates. Principal market areas for the identified businesses were 72 percent local, 20 percent within Minnesota, .05 percent national, and .03 percent international. The location of an industrial park should be the highest priority. Seventy-two percent of the business community market area is located within 20 miles of their operations. The city needs to consider the market access to these businesses. In addition, market access was the second frequent advantage listed in regards to encouraging businesses to expand their operations. The responses to the survey supports the notion that market area must be considered where to locate an industrial park. Established dates are important in understanding the stability of the business. Referring back to Established Dates graph indicates 30 businesses were created between 1990 and 1995. This number of businesses makes up 45 percent of the total surveyed businesses. These thirty businesses along with the remaining businesses are operating from their residence. It should not be the direction of local government to mandate any sort of restrictions to further reduce these types of businesses, if and only if there are negative externalities that threatens health, safety, and residential character. The third area of concern is the commitment to economic development. The purpose of this report was to provide useful information for future economic developing strategies. It was very evident among the business community that there was a lack of commitment to economic development. Referring back to business changes section, the number of businesses that are considering-, relocating is based on two basic business needs which are facilities and city services. 19 Findings also point out the importance of land/facility space and public services in the consideration to remain, expand, or relocate within Otsego (see Table N). A commitment must be established to develope these basic business needs. SUMMARY The conclusion of this report also brings conclusion to this internship. The process of this internship was everything the author envisioned. Overall, the net results were positive and beneficial. The internship proved to be highly educating. The internship gave the author an opportunity to demonstrate abilities while learning new research and survey methods. The author wants to thank Otsego's City Hall Administration for the continuous direction, support, and answers. A special thank you is given to the active members of the EDAAC and City Council which provided encouragement, insight, and listened to problems and suggestions. 20 ATTACHMENTS �\ Otsego, l KAKER "�_.•..):•`.� Y'FP 1011 . _=•14" Mi t10 nneso a K AICA 1 tiro Si � stn � 67th j 951n ST 9 95th ST 14 17 +'` 116 15 ¢ 13 8 92nd ST Y Y 9 i s 87th ST 22 23 24 '�19 ~' SCALE W MILES I low KAP SAM esu ST S : SEPTEMBER 1989 "d ST. !0th ST 60th ST _ r n • i \ MOTLM KAP • ►11 K 0AM1E10 n 77tH ST ^'WMD"S O'A'S AMID SHOULD MOT K LOUD WH M rmclu oo r 27 26 7 25 ,� % 30 2.8 4 ` _ BASE IAAF SOt1RCE. mWRIGHT COLNTY 72n i _ WRIGSURVEYORS OFFICE 7.2509 70th ST 70th ST 701 T 70th ST = `\ 67th ST O� 67U j%0 35 r-. 31 33 034 85th ST6 62nd STRICE 01 62 ST \' ' — ' C A f : _• aw U Business Name: Business Owner Name: Address: Zip Code. City: Telephone: ( ) Year business established: Yes Is this business your primary occupation? Is this location the company headquarters? Yes If no, what is the location of the company headquarters? Code: City: State: P I Pgal a ;nye: corporation partnership sole proprietor nonprofit corporation cooperative other (circle only one) 1 2 3 4 S 6 No No 0 Exhibit B (circle only one) 1 agriculture/forestry/fishing 2 ming 3 construction 4 manufacturing 5 transportation/utilities 6 wholesale trade 7 retail trade g finance/insurance/real estate 9 services : (total market area must equal 100 percent) local state national international 10090 0 Exhibit B How many persons do your currently employ at this facility'? Estimate the number of full time part time permanent (year round) seasonal peak How many employees one year ago What four factors do you currently regard as advantages and disadvantages which would encourage or discourage you from expanding or relocating within this community? (Specify up to four factors). Advantages Disadvantages 1. 1. 2 2. 3. 3. 4. 4. What importance do you give the following factors in considering remaining, expanding or relocating? (Please circle appropriate number below.) Rating Key 1. very important 2. important 3. somewhat important 4 Factors 01. Labor Skill 02. Labor Availability 03. Roads (highways, local roads) 04. Land/facility Space (cost, availability, location) 05. Permit Processes (zoning, building, environmental) 06. Public Services 07. Utilities (electric, natural gas) 08. Government Programs (assistance, incentives, job training) 09. Business Services (legal, financial, etc 10. Market Access (local, regional, international) 11. Supply Access (raw materials, components) 12. Quality of Life (environment, recreation, culture) 13. Property Taxes 14. Local Education (K-12) 15. Higher Education (universities, colleges, ATI's) not important (circle response) 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 Are the services and the facilities within our community, as listed below, adequate for your current or future business needs'? (Please circle the appropriate number below.) Rating Key 1. adequate 2. inadequate 3. do not know Which of the following changes do you plan for the next two years? (circle response) 1. Change your mix of goods and services yes no 2. Expand plant facilities yes no 3. Relocate yes no 4. Modernize production technology yes no 5. Make other capital improvements yes no If you indicated plans to relocate, where would you move? (circle only one) 1. Within this city 1 2. Within this county 2 3. Within Minnesota 3 4. Other 4 When would you relocate? (circle only one) 1. Within six months 1 2. Six months to one year 2 3. One to three years 3 4. Other 4 What are your principal reasons for relocating outside of the City? (circle response) 1. Labor supply/cost yes no 2. City services yes no 3. Inadequacy of land/facilities yes no 4. Incentives from other cities/states yes no 5. Other yes no (circle response) 01. roads 1 2 3 02. sewers 1 2 3 03. water 1 2 3 04. police protection 1 2 3 05. fire protection 1 2 3 06. solid waste disposal 1 2 3 07. emergency medical services 1 2 3 08. electric/natural gas services 1 2 3 09. school system 1 2 3 10 facility space availability 1 2 3 11. land availability 1 2 3 Which of the following changes do you plan for the next two years? (circle response) 1. Change your mix of goods and services yes no 2. Expand plant facilities yes no 3. Relocate yes no 4. Modernize production technology yes no 5. Make other capital improvements yes no If you indicated plans to relocate, where would you move? (circle only one) 1. Within this city 1 2. Within this county 2 3. Within Minnesota 3 4. Other 4 When would you relocate? (circle only one) 1. Within six months 1 2. Six months to one year 2 3. One to three years 3 4. Other 4 What are your principal reasons for relocating outside of the City? (circle response) 1. Labor supply/cost yes no 2. City services yes no 3. Inadequacy of land/facilities yes no 4. Incentives from other cities/states yes no 5. Other yes no Are there any businesses or services lacking in our community which would be of benefit to your business'? Have you had any difficulty working with a specific City department'? What was the problem and with what department'? Would you like to speak to a city representative in order to work on a solution to the problem you have encountered with government'? What is the single most important project that could be undertaken to make our community a better place to operate a business'? Additional comments Thank you for your patience with this survey. Please return to Otsego City Hall by October 2, 1995. September 18, 1995 Dear Property Owner, Enclosed please find a survey developed by the City of Otsego in conjunction with the Minnesota Department of Trade & Economic Development. Your property has been identified as having a potential commercial, home extended, home occupation, or agricultural business. The City of Otsego will use the information from this survey to examine future services to help the Otsego business community. The City of Otsego would appreciate your cooperation by answering the enclosed survey requesting information about your business operations and city services. Please answer the questions to the best of your abilities. The information will help economic development which will be beneficial for both the City of Otsego and local businesses. This survey is being administered by the City of Otsego's Database Intern. If you have any questions please contact Timothy R. Eng at (612) 441-4414. We request that all surveys be returned, therefore, we ask that you please complete the survey and return it in the enclosed envelope by October 21995_ Thank you for your cooperation and time in answering the questions. Sincerely, Timothy R. Eng City of Otsego Database Intern EYhihit C M Ap LISTING OF ALL NTIFIED BUSINESSES 1 2 _ 4 5 Business Name A & L_Electronics AB_D Nursing, Inc. _ Anoka Equine Veterinary Services Bank Of Elk River -Otsego Branch Last Name Wicklund Christianson Gilgenback uergens First Name Al Street Address 8714 N.E. Parell Ave.__O_ts_ego 6_882 N.E_. County Rd_39 1_5670 N.E. 90tH _St. 16445 N.E. 70th _St. 15800 N.E. 88th St. City__ phone number 441-0867___ 295_-3206 441-7700 Kevin David homas _Montice_llo O_tsego441-5111 Elk_River_441-3797 Elk River 6 _ 7 _Benjamin Business Services Benson - Mfg. Co,Inc. Freed Russell 15465_ N.E. 88th St. 15463 N.E. 89th St. 138_30 N.E_. 85th St. Otsego 441-7405_ 241_-0256 Ochocki Michael __ Otsego Otsego _8_ Builders_ Diversified_ Services, Inc. Flynn Renee 441-8073 _9_Chuck's Amusement's, Inc. W knitz Charles 14280 N.E. 87th St. Otsego _441-2782 _ 10 CityWide Radio, Inc. Johnson Nathan 15673 N.E. 94th St. Olse o 865-4886 11 Clay Coup _Spencer Mae 11088 N.E. 95th St. Monticello 41-2337 12 Coles Karate Coles Kenneth 15613 N.E. 90th St. Otsego 241-0125 13_ Cover It Kern III_ Raymond 8955 N.E. Page Ave. —E. Otsego 441-3185 14 Crown Limo Brown Charles 9-326—N Nelmark Ave. _Otsego 41-5245 15 Dahl Trans oration Dahl Perry 8925 N.E. Mason Ave. Otsego 441-4609 16 Darkenwald, Inc. Darkenwald John 7535 N.E. River Rd Elk River 41-3700 17_ Dave C_ecka Engraving_ Cecka Dave 13857 N.E. 95th St. Otsego 41-4647 18 Dennis Groess Trucking Groess Dennis 8392 N.E. Packard Ave. Otsego 41-3860 19—Do-Rite Machining Sebeck George 8116 N.E. River Rd. Otsego 41-66_22 20 Duerrr's Water Care Duerr Wilfred 11230 N.E. 70th St. Albertville 97-2672 21_ HobbyCraft Thompson Dwayne 9342 N.E. Ochoa Ave. Otsego -441-2135 22_ ED_wayne's J Palmer Trust Palmer Ed 15548 N.E. 95th Circle Otsego 41-3440 _23 Ed's Fence Co. Stieg Edward 15156 N.E. 96th St. Otsego 441-2605 24 Elk River Box Factory Ebner Donald 10273 N.E. Parrish Ave. Elk River _ 41-2534 25 Elk Siding Braun Larry 13977 N.E. 91st St. Elk River_ 441-4877 26 Evans' Beauty Evans Janua 9519 N.E. 95th St. Monticello 2_95-5464 27 F & F Food Mart Darkenwald Clem 7767 N.E. River Rd. Elk River 41-7807 28 FunCity(Minn-E-Golf & Hobby) Thibodeau Rudy 9100 N.E. Park Ave. Otsego _ 441-8365 29 Gary's Kitchens Sorensen Ga 13603 N.E. 95th St. Elk River 41-1839 _30_G_ordy's 31 32 Truck & Tractor Repair' Inc. Lefebvre Gordon 15266 N.E. 70th St. Elk River 41-14_56 97-3_1_15_ 241-0468 G_reninger Storage Hicks Enterbby G_renin_ger Gary 1323_5 N.E. 70th St. Elk_Riverm Elk Hicks Ai_ 7349_ N.E. Quaday Ave. 33 Farprises Hom Kessler Mark 6363 N.E. Jason Ave. Albertville 497-4805 34 Hon_eybear Farms Struthern erry 8465 N.E. Odean Ave. Elk River_441-2761__ 35 36 37 38 J P O Millwork Plus D. Mason -:_ry _-- -_ _ aures Companies_ Judy's Hair Creations Ouellette Davis Flom John Jett -re— James 6132 N.E. Packard Ave. 8775 tV:E_County Rd. - 13779 N.E. 95th St. Elk River Monticello O_tsego441-0907_ 441-2614 295-4054_ 441-4812 DeMars Judy 14019 N.E. 91st St. Otsego LISTING OF ALL IDENTIFIED BUSINESSES _ Business_ 39 Name_ _ Ka_ke_Kreations Last Name First Name Bettin eg_r Kathy Street Address 15373 N.E. 92nd St. City Otsego hone number 41-5911 40_ King of_Woods_ _ Steinke Bodo 1_5683 N.E. 96th St. Otsego_ __ 241-9425_ 41 -42 Lawn O_m_aments _ L_ef-Co Farm, Inc. Le_mon Lefebvre _James Kenneth 1_4523 N.E. 85th St. 1_5033_ N.E. 70th St. Otsego Elk River _1-4701 _ 1-7204 43 Lefebvre's Carpet _ _ Lefebvre Dave 9310 N.E. Parrish Ave. Elk River 1-4181 44 _ Linco Fab_Inc. Praught Brad ---- _45 Loving Care Pet Sitters Vorlicek Michelle 15374 N.E. 95th St. Elk --River --W1--1595 46 M__Svndicate, Inc. Mbanefo Christian 14531 N.E. 93rd St. Pt—Sego 41-0243 47 Mac's Well & Pum_ p Service McAlpine Dennis V50 -7N. E. Nashua Ave. Elk River Magic Mettens Konpjo Joyce 15446 N.E. 95th St. Otsego —Io _1-2862 1-4199 49 Maps Services Caillier Marlan 9854 N.E. Jal er Ave. ont Micel 2954309 50 Marquette Bank of Otsego Pohlad Carol 15670 N.E. 90th St. _ Otsego 41-1085 51 Marlin Account _ Martin Eldon 067 N.E. Maciver Ave. Albertville 97-3426 52 Midwest Station II_Inc. Boggs David 16917 N.E. 740th St. Otsego 1-6466 53 no name indicated on survey Irvine Doris 15052 N.E. 96t St. Otsego 1-1940 _54 Otsego Technology, Inc. Wilder Rod 14340 N.E. 89th St. Elk River 241-9282 _55 PFS, Inc. Mickelson Bradley 14605 N.E. 94th St. Otsego _ 41-0140 _ _56 Presley Custom Trucking Presler Clark 14292 N.E. 85th St. Elk River 1-8091 _57 Rainbow Daycare & Preschool McChesney Sandy 15590 N.E. 90th St. Otsego 41-5547 58 59 --60— Ric-6'—sTaxidermy Riverbend Park Brunell Rich 14526 N.E. 89th St. Darkenwald's Riverbend 7535 N.E. River Rd Otsego Elk River 241-0926 1-3700 Riverview Liquorette Phillips Warren 15682 N.E. 90th St. Otsego 41-7685 61 Riverwood Conference Cennter 10990 N.E. 95th St. Monticello 41-6833 62 Rogers Tax & AccountingWilder Liz 14340 N.E. 89th St. Elk River 41-9282 _63 Schaefer Contractin Services Schaefer Gary 8530 N.E. Palm ren Ave. Otsego 241-9776 64 Shade Tree Nurse Croteau Allan 17335 N.E. 65th St. Elk River 41-3264 65 Shierts Trucking Shierts Kenneth 9657 N.E. Nashua Ave. Elk River 1-2828 66 Snow & Mow Repair, Inc. Bonneviea Wallace 14339 N.E. 89th St. Otse o 441-1261 67 68 _ &-B Electric, Inc. he Logical Choice Business Services Fa_Thomas Fontaine_ i Daryll 10795 N.E. 70th St. 15439 N.E. 92nd St.Otsego Albertville 497-3965 241-9828 _69 Tom Thumb — - _ 15704 N.E. 90th St. Otse _ 1-6496 70 Video III _ Phillips _ Warren 15682 N.E. 90th St. Otsego 41-6173 71 W A J Associates _ Johnson Barbara 14452 N.E. 95th St. Elk River 1-2546 --72--W W Information Services eller anda 8276 N.E. Packard Ave. Elk River _ 1-2382 _ 73—Windbreaker Entertainment, Inc. Snavely Robert 6922 N.E. River Road Elk River 1-7905 74 75 _ You & Me Wild Flower___ _880 N.E. Kaiser Ave. Monticello 295-3354___ ac_h_ma_n_&Son _ _ achman Eugene_ 9663 N.E. Jason Ave. Albertville 94-2368_ 76 Welton Russell 13878 N.E. 80th St. Otse o 441-5715 -� �' ,r� �� �, ... i .... -. '.�a,...r .r4, -- �j� ., ��i.•. vi 4C 30 20 10 0 LEGAL ENTITIES sole proprietors corporations partnerships M Series 1 BUSINESS TYPES construction service retail trade wholesale trade agriculture nnance transportation manufacturing 0 Series 1 120 100 80 60 40 20 NUMBER OF EMPLOYEES full time part time permanent seasonal peak M Series 1 Supplement An additional requirement of the internship was to make a final inquiry about business operations. A telephone inquiry was made to all observation, assumed names/corporations, and commercial businesses that did not respond to the two survey requests. Table VII No Answer No Business Identified Observation 44 17 38 3 2 Assumed Names 5 22 2 1 3 Commercial 3 0 0 0 3 TDIal 52 39 40 4 8 The results of the telephone inquiry are examined in Table VII. The total number of inquires was 52. There was a even amount between the observation and assumed name/corporation sections that did not have telephone numbers. The total number of inquiries that produced an answering machine or no answer was large for the observation section. Three resident indicated that they were not operating any type of business. One business from the assumed name/corporation section indicated that the business was going out of business within the next two months. The key element of this inquiry was to identify additional business. A total of eight businesses were identified. Two businesses were identified from the observation section. Three businesses were identified from the assumed name/corporation section. The commercial section produced three businesses. In addition to identifying businesses, the inquiry asked seven additional questions. The questions asked for general information, year established, primary occupation, primary headquarters, legal entity type, primary business type, principle market area, and the number of employees. The years established ranged from 1977 to 1991. Seven of the respondents answered "yes" if the business was their primary occupation. Only one indicated that the business was not a primary occupation. All eight identified businesses indicated that the business headquarters was located in Otsego. Legal entity types was classified into three types; corporation, partnership, and sole proprietor. Three indicated corporation, one indicated partnership, and two were classified as sole proprietor. The primary business type was consistent with the survey responses. The largest type was services with four. The remaining types which included retail trade, agriculture, and finance/insurance/real estate each with one business. The principle market area for the eight identified businesses supports the survey results. A high percentage of the market area was local. The market area was 71 percent local and 38 percent state. The final question asked to identify the total number of employees. The eight identified businesses provided 23 part time employees and seven full time employees. A total of 76 businesses were identified by the survey and telephone inquiry (see Exhibit D). The 76 businesses was compiled by the original 63 identified businesses, eight from the telephone inquiry, and five returned surveys that were received after this report was completed. Section 29 EDAACPRO.WPS REVISED 8/20/95 HOME EXTENDED BUSINESSES: Section 20-29-1: Purpose: The purpose of this subsection is to prevent unfair competition with business districts and to provide a means through the establishment of specific standards and procedures by which home extended businesses can be conducted in residential and agricultural districts without jeopardizing the residential character or health, safety and general welfare of the surrounding neighborhood. In addition, this subsection is intended to provide a mechanism enabling the distinction between permitted home extended businesses, so that in most cases, permitted home extended businesses may be allowed through an administrative process rather than by an interim use permit. 20-29-2: Application: Subject to the Non -Conforming Use Section and other applicable provisions of this Chapter, all occupations conducted in the home shall comply with the provisions of this Chapter. This Section shall not be construed, however, to apply to home occupations related to farming. 20-29-3: Prohibited Activities: No home extended business (permitted or special) shall: a. Constitute a fire hazard to neighboring residences, adversely affect neighboring property values, or constitute a nuisance or otherwise be detrimental to the neighbors because of excessive traffic, noise, light, glare, fumes, odor, electrical interference, vibration, dust and other nuisance or safety hazards. b. Adversely impact governmental facilities and services, including roads, sanitary sewer, water, storm drainage, garbage service, police and fire. c. Adversely affect sensitive environmental features including lakes, surface and underground water supply and quality, wetlands, slopes, flood plains and soils, or other factors as found relevant by the City. d. Involve the use of hazardous materials or activities. e. Involve any of the following: body shops, welding, ammunition manufacturing, internal combustion engine repair, flea markets, motor vehicle repairs or sales, massage or escort business or other adult oriented businesses as defined by this ordinance, or other objectionable uses as determined by the City Council. f. There shall be no exterior evidence of the home extended business such as displays, exterior storage of business equipment, materials, merchandise, inventory or heavy equipment, domestic articles such as lawnmowers, boats, cars, etc. if buildings exist, with the exception of a sign. 20-29-4: Permitted Home Extended Business License: Licenses for home extended businesses shall be issued subject to the conditions of this Section, other applicable City Ordinances, Federal and State Law. A "Permitted Home Extended Business License" may be issued by the Zoning Administrator or their agent based on proof of compliance with the provisions of this Subsection. Application for the "Permitted Home Extended Business License" shall be accompanied by a fee as adopted by the City Council by resolution from time to time. The yearly renewal fee shall be set by the City Council by resolution from time to time. Licenses issued are not transferable. If the Zoning Administrator denies a permitted home extended business license to an applicant, the applicant may appeal the decision to the City Council. The license shall remain in force and effect until such time as the activity has ceased for a period of one (1) year, there has been a change in conditions or violation, there is a change of occupancy on the property or until such time as the provisions of this Section have been changed. Permitted home extended businesses are subject to the following criteria: a. The occupation shall be carried on entirely within the dwelling unit, attached garage or detached accessory structure. b. No permitted home extended business shall require internal or external construction features not customarily found in dwellings. c. A maximum of one (1) full-time employee, or equivalent, other than those persons who customarily reside on the premises shall be employed. This provision shall not apply where the permitted home extended business is a meeting place for employees and the work is done off -premise. d. No permitted home extended business shall be serviced by delivery vehicles larger than 26,000 pounds gross vehicle weight. In no instance shall the frequency of the deliveries adversely affect the character of the uses permitted in the zoning district. e. No home extended business shall be conducted between the hours of 10:00 p.m. and 7:00 a.m., or as otherwise permitted by the City. f. Permitted home extended businesses shall not create a parking demand in excess of that which can be accommodated in an existing driveway, where no vehicle is parked closer than fifteen (15) feet from the edge of right-of-way. g. The operation of any wholesale or retail business, unless it is conducted entirely by mail, and does not involve the sale, shipment, or delivery of merchandise on the premise, is prohibited. On-site sales shall be limited to those clearly incidental to services provided by the business. h. Permitted home extended businesses may not involve the repair or use of equipment which is not normally found in a residential area; except that equipment which is typically found in an office may be used. i. All interior and exterior signs must comply with Section 37 of the zoning ordinance. j. A contract shall be required between a refuse hauler and the owner for disposal of all waste including, but not limited to, garbage, decayed wood, saw dust, shavings, bark, lime, sand, ashes, oil, tar, chemicals, offal, and all other substances not sewage or industrial waste which may pollute or tend to pollute the waters of the State. The contract shall be provided to the City prior to issuance of the Home Extended Business License and shall state the destination of the waste and shall be renewed annually on or before January lst of every year. The City shall be provided with documentation of the contract recorded. k. The limited seasonal sale of products grown solely on the site by the residents of the farmstead shall be exempt from the provisions of this sub- section. 1. Permitted Home Extended Businesses may use for business purposes, a cumulative amount of square footage of an attached garage and accessory buildings, not to exceed the square footage allowed under Section 20-16-4 of the zoning ordinance, regardless of the total area of all existing attached garages and accessory buildings located on the property. Additionally, attached garages must allow a minimum of 200 square feet for the inside storage of at least one passenger vehicle. t 20-29-5: Special Home Extended Businesses: Special Home Extended Businesses that do not involve "Prohibited Activities"' but that exceed the "Permitted Home Extended Business Criteria" may be allowed with approval of an Interim Use Permit by the City Council pursuant to the provisions of Section four (4) of the zoning manual. a. Declaration of Conditions: The City Council may impose such conditions on the granting of a "Special Home Extended Business License" as may be necessary to ensure compatibility and to carry out the purpose and provisions of this Section. b. Effect of Permit: A "Special Home Extended Business License" may be issued for a period of one (1) year after which the license may be reissued for periods of up to three (3) years each. Each application for license renewal shall be processed and subject to the approval of the Zoning Administrator, except in cases where written complaints have been received concerning the operation or where there has been a change in conditions or violations, a renewal shall be processed in accordance with the procedural requirements of the initial special home extended business license. c. Lapse of Special Home Extended Business License by Non -Use: Whenever within one (1) year after granting a license, the use as permitted by the license shall not have been initiated, or when the activity as allowed by the special home extended business license has been discontinued for more than one (1) year, then such license shall become null and void unless a petition for extension of time has been granted by the City Council. Such extension shall be requested in writing and filed with the City at least thirty (30) days before the expiration of the original license. There shall be no charge for the filing of such petition. The request for extension shall state facts showing a good faith attempt to initiate the use. Such petition shall be presented to the Planning Commission for a recommendation and to the City Council for a decision. d. Reconsideration: Whenever an application for a license has been considered and denied by the City Council, a similar application for a license affecting the same property shall not be considered again by the Planning Commission or City Council for at least one (1) year from the date of its denial unless a decision to reconsider such matter is made by not less than four -fifth's (4/5) vote of the entire City Council. e. Renewal of License: An applicant shall not have a vested right to a license renewal by reason of having obtained a previous license. In applying for and accepting a license, the license holder agrees that the monetary investment in the home extended business will be fully amortized over the life of the license and that a license renewal will not be needed to amortize the investment. Each application for the renewal of a license will be reviewed without taking into consideration that a previous license has been granted. The previous granting or renewal of a license shall not constitute a precedent or basis for the renewal of a license. 20-29-6: Inspection: The City may at any reasonable time inspect the home extended business to determine if the applicant is strictly adhering to the criteria for a permitted home extended business or the conditions placed on a special home extended business. Inspection by the City of a home extended business shall take place at a minimum of every three (3) years. 20-29-7: Revocations: 1. Permitted and interim home extended business licenses shall remain in effect until: a. Such time as the business is not in compliance with any portion of this ordinance, any other applicable city ordinance, or any applicable state or federal statute, rule or regulation. b. Such time as there is any violation of the terms and conditions of license approval. c. Such time as there is any change in the conditions of operation of the business as it was originally approved; including any change in the nature of the business, any substantial change in the extent of business, any substantial change in the extent of business operations, any significant expansion of business facilities, or any other circumstances related to the business which have the potential to significantly effect surrounding properties, or which may pose a threat to the health, welfare or safety of the general public. d. Such time as the license expires. At such time that the city has cause to believe that any of the events listed in a, b, or c above have taken place, the city shall immediately notify the license holder of the allegations of violation and the necessary corrections required to bring the license into compliance. The notice shall also contain the date and time for a hearing on the matter at which time the license holder may present any evidence relevant to the allegations in front of the city council, and the city shall present their relevant evidence. After the hearing the city may immediately act to revoke the license, to continue the license with additional conditions including security, or to take no action. No hearing is necessary in the event that the license has simply expired. This Section does not preclude the city from utilizing other legal remedies available to it through this Section, or any other applicable law. 2. If the proposed work described in a home extended business license has not been completed within the time allotted after its date of issuance, the license shall expire and become void except that the council may, following recommendation of the Planning Commission, extend the license for an additional period determined by the council on receipt of a request for license extension prior to its expiration. 20-29-8: Non -Conforming Use: A. Legal Non -Conforming Use: Existing Home Extended Businesses lawfully existing on the effective date of April 13, 1992 may continue as non -conforming uses. They shall, however, be required to obtain licenses for their continued operation. Any home extended business that is discontinued for a period of more than one hundred eighty (180) days, or is in violation of the provisions of the Ordinance under which it was initially established, shall be brought into conformity with the provisions of this Section. B. Illegal Non -Conforming Use: 1. Unapproved and illegal non -conforming home extended businesses existing upon the effective date of this Chapter shall cease and terminate home extended business operations within one (1) year from the effective date of this Chapter. 2. Time extensions may be approved by the City Council upon written request of the property owner provided that a substantiated, unique situation warrants a delay to the termination deadline. In considering such requests, a primary consideration of the City Council shall be the existing and potential development which may be adversely impacted by the home extended business operation. CITY OF OTR. ECHO COUNTY OF WRIGHT STATE OF MINNESOTA ORDINANCE NO. 95-29 AN IBRIM ORDINANCE ESTABLISHING A MORATORIUM ON THE ESTABLISHMENT OF C CTAT FEEDLOTS OF 300 ANIMAL UNITS OR MORE WITHIN THE CITY OF OTISEGO. THE G{ITY COUNCIL OF THE CITY OF OTSEGO ORDAINS AS FOLLOWS: Section I. Intent. It is the intent of this Interim Ordinance to allow the City of Otsego to complete review of the presently existing ordinance sections related to Commercial Feedlots and to make appropriate changes in the same in order to protect the value of residential properties within the City of Otsego, to insure prQper lard use controls, and to facilitate compatibility between such facilities and the surrounding property uses. Section 2. Authority and Purpose. The City Council is empowered by Minn. Stat. 462.355, Subd. 4 to pass an interim ordinance, appl ' able to all or a portion of its jurisdiction, for the purpose of potecting the planning process and the health, safety, and welfare of its citizens. section 3. Temporary Prohibition. For six (6) months after the effective date of this ordinance, or until such earlier time as the Otsego City Council determines by resolution that the reasons for them ratorium no longer exist, no Commercial Feedlot of 300 Animal Unit or more, shall be established within the City of Otsego, nor shall the City receive, consider, and/or approve, any application, of any type, for a Commercial Feedlot of 300 Animal Units or more within the City. The term Animal Unit, as used herein, is defined in Minnesota Rules 7020.0300, Subpart 5. Section 4. Misdemeanor. Any person, persons, firm or corporation violating any provisions of this ordinance shall be guilty of a misdemeanor, and upon conviction thereof, shall be punished pursuant to Minn. Stat. 609.02, Subd. 3, or as subsequently amended, plus costs of prosecution. section S. Ynjunctive Relief. In the event of a violation of this ordinance, the City may institute appropriate actions or proceedings, including requesting injunctive relief !to prevent, restrain, correct, or abate such violations. Section 6. Separability. It is hereby declared to be the intention that the several provisions of this ordinance are separable in accordance with the following: if any court of competent juri9diction shall adjudge any provision of this ordinance to be invalid, such judgment shall not affect any other provisions of this brdinance not specifically included in said judgment. seatibn 7. Effective Date. This ordinance shall take effect from and a ter its passage and publication, and shall remain in effect until six (6) months after the effective date, unless a shorter perio of time is approved by proper resolution of the Otsego City Counc'l. PASBS� by the City Council of the City of Otsego this 2 TF3 day of TTn—hPr , 1995. IN F]VOR: Norman F Freske, Mayor, Ron Black, and Vern Heidner, Council OPPOS{D: Members Suzanne Ackerman and Larry Fournier, Council Members CITY OF OTSEGO aiqe Beatty, Norma . Freska, Mayor Posted: 11/30/95 - Published: 12/6/95 Elk Ri�ar Star News William S. RadzwiU Wrew J. MacArthur (ichael C. Couri November 16, 1995 RADZWILL & CO UPJ Attorneys at Law 705 Central Avenue East PO Box 369 St. Michael, MN 55376 (612) 497-1930 (612) 497-2599 (FAX) City Council Members City of Otsego c/o Elaine Beatty, City Clerk 8899 Nashua Avenue NE Elk River, MN 55330 RE: Proposed Interim Ordinance Establishing A Moratorium On Commercial Feedlots Dear Council Members: Enclosed please find a Resolution Supporting Interim Ordinance and.,;:• proposed Interim Ordinance Establishing A Moratorium On The-,..,_.....; Establishment Of Commercial Feedlots within the.City as.requested • by the Council. The proposed Moratorium was presented at public hearing before the Planning Commission on November 15. The Planning Commission voted 4 to 1 not to recommend passage of the Moratorium, after the public portion of the testimony was concluded. Concerns raised by the Planning Commission were that the establishment of a moratorium and appointment of a Citizen's Committee could slow down the process of fixing the Ordinances, either intentionally or unintentionally; that there would still have to be a staff determination as to what actually constituted a Commercial Feedlot during the period of the Moratorium; and that there was sufficient time within the time frame of a normal application period to both MPGA and the City to allow proper amendments to the ordinance. There was some suggestion that changes in the form and/or duration of the moratorium could alleviate some concerns raised, however no specific suggestions were put in the form of a motion. Some ideas raised included the possibility of placing a downward limit on the number of animal units that would be included within the purview of Letter to Otsego City Council November 20, 1995 Page 2 the moratorium; limiting the moratorium to only those operations establishing a lagoon for manure; or placing a more restrictive time frame on the duration of the moratorium. Part of the discussion involved the idea that any other applicant would be aware of the City's position in the Lef-Co application and would thus not proceed with an application until such time as the ordinances were amended. In my opinion, this argument is not very persuasive, since other applications could be totally dissimilar fact situations, but would still require a decision under existing ordinances, which everyone appears to agree are unsatisfactory. It would appear to be the better practice to fix what is broken before you try and use it again. I have enclosed with this letter a memorandum drafted by Bob Kirmis relative to feedlot moratoriums in other sections of the state. As you will note, most of these ongoing moratoriums involve counties rather that municipalities. I have also contacted the Meeker County Attorney seeking information on that County's ongoing feedlot moratorium. Whatever information I receive from that source I will try to have available to the Council at the Monday meeting. If you have any questions please feel free to_contact me. Very truly yours, An rew J. cAr ur RADZWIL & COURI Encls. cc: Bob Kirmis, NAC Larry Koshak, Hakanson Anderson MEMORANDUM TO.- FROM: O:FROM: DATE: RE.- FILE E:Flt_E NO: Otsego Mayor and City Council Bob Kirmis 17 November 1995 Otsego - Feedlot Moratorium 176.08 - 95.28 This memorandum is intended to convey some information considered relevant to the City's forthcoming discussion of the proposed commercial feedlot moratorium. At the 15 November meeting of the Planning Commission, considerable discussion took place as to the appropriate length and applicability of such moratorium (in animal units). 1Nhife the Planning Commission has recoMmended against the establishment of a moratorium, it may be of benefit to the Council to be aware of the duration and applicability of other animal feedlot moratoriums which currently exist or recently existed in the State of Minnesota. The following is a Summary of such feedlot moratoriums, I County Duration Animal Unit (A.U.) Application Rice 18 months July 1994 -Jan. 1996 500 A- U. and over Redwood 2 months All feedlots Dec. 1991 -Jan, 1992 Yellow Medicine 3 months All feedlots Jan. 1992 -March 1992 LeSueur 12 months June 1995 -Present 7Qfl A U and over William S. RadzwiU Andrew J. MacArthur Michael C. Couri November 9, 1995 Planning Commission City of Otsego c/o Elaine Beatty, 8899 Nashua Avenue Elk River, MN 55330 RADZWILL & CO URI Attorneys at Law 705 Central Avenue East PO Box 369 St. Michael, MN 55376 (612) 497-1930 (612) 497-2599 (FAX) Members City Clerk NE RE: Proposed Interim Ordinance Establishing..A.._Moratorium On Commercial Feedlots Within The City of Otsego Dear Planning Commission Members: Enclosed for your review and public hearing at your, -next regularly ..scheduled Planning Commission meeting -on November. 15, 1995 please: :Y -==-,find : the --proposed ..Interim - Ordinance establishing .a _.;Moratorium on '' Commercial Feedlots within, .the .,City of Otsego- and a proposed, ;. supporting resolution. The public hearing on the proposed moratorium was scheduled at -the request of the City Council. The purpose of the proposed moratorium is to give the City sufficient time to review and revise the existing ordinance provisions and make a determination as to whether or not such facilities will be allowed within the City, and if they are allowed where and under what conditions. If you have any questions please feel free to contact me. Very truly yours drew Z �ch RADZWILL & COURI Encls. cc: Bob Kirmis, NAC Larry Koshak, Hakanson Anderson City of Otsego Engineer's Agenda Items City Council Meeting November 28, 1995 9.1 Otsego Creek Authority Petition The Otsego Creek Authority has petitioned the Council to assume the responsibility for an improvement project in the Creek. The project has received a permit form the Mn/DNR. The permit allows for the replacement of two large culverts, one under 83rd Street and Mason Avenue, and the other under Randy Pouliot's driveway at 8457 Mason Avenue. The permit also allows for cleaning and debris removed in the portion of the creek from the Pouliot's driveway to the 87th Street culvert. The Council approved the expenditure for the preparation of the permit application. According to the Otsego Creek Authority agreement, any work north of the Section 30 Wetland is the sole responsibility of the City of Otsego. Should the Council consider and pass the resolution accepting the petition, we recommend the following steps be considered. 1 . Order a feasibility study to determine the cost of installing the culverts and making the other necessary repairs in the creek channel. The report would be prepared to include the cost of construction and repairs including the overhead costs. This report is required under the Storm Sewer Taxing District Statute 444. This report should also include recommended methods of applying the cost share throughout the District. Some of the repairs could be done through the Sentence to Serve program in Wright County. 2. Upon acceptance of the report and determination of the method of taxing the Council would call for a public hearing to present the report. The hearing would meet the requirements of Statute 444 where as the costs of the improvement would be presented to District landowners. The estimated costs would be presented along with the proposed tax levy. The landowners would be given an opportunity to comment. Statute 444 requires that at least two hearings be held, one to establish a taxing district, and another one to establish a tax rate for a short term project and/or an improvement program with longer period and comprehensive goals. The taxing district hearing has been held and the district is established. This particular project included in the DNR permit is a short term project with a tax levied for no more than one or two years. 3. Upon reviewing the hearing comment and favorable passage of the project, the Council could establish the levy rate and prepare a levy roll for filing with the County. However, unless filed soon in 1995 for tax year 1996, the levy would not be on tax statement until 1997 if filed in 1996, which may be the case. The City may need to do temporary project funding until the levied funds are received from the County, perhaps in med 1997. At that time a permanent bond could be established and a retirement schedule set. The Council could also consider waiting to set the levy after all the project costs have been determined. The Finance Director and City Attorney should advise the Council on these matters. Since there is no assessment hearing or ability to appeal the levy, the decision on the amount of the levy and terms of the retirement of the debt are at the Council's discretion. Find accompanying these comments, a Resolution ordering the feasibility study. 9.2 ENGINEERING INVOICES - MUNICIPAL WELL We presented the Finance Director with several invoices for our services in connection with the well. The work period was from April 11, 1995 to October 2, 1995, and the total amount was $6,507.91. We broke the invoices down into different categories. Find a copy of each cover sheet accompanying this report. As of September 13 , 1995, each of the contract for the construction of the well and appurtances were finalized. Of the invoices, OT501 x ($223.38) and OT501 y ($803.75) represent the final engineering fees for the construction observation and administration of these projects. The rest of the invoices represent work performed by our staff to address the series of special events that occurred prior to and during startup at the school this fall. Those events include service to; 1. administer the pump failure, 2. supervise the sand flushing, 3. respond to the request by school officials and architects on water service issues, and 4. preparation of 0 & M data and literature for the well. The Finance Director asked that those invoices be brought to the Council for approval. The Finance Director would like the Council opinion whether the invoice for $2,379.65 for responding to the school's concern be sent to the school district for payment. If the Council wishes to pursue retrieval of the $2,379.65, we will support that effort with whatever documentation required. Recently, and since the above invoices were sent, the Cable TV company cut the control cable for the water system between the school and well pump control panel. We prepared an invoice for the Finance Director to request reimbursement for our time and the electrical contractors effort to get the system operating as soon as possible. The school was only out of water for 1 '/2 hours. Kevin P. Kielb and I will be available to answer any questions you have on this matter. 9.3 Island View Estates We will present graphics of the preliminary design for your comment and input. 9.4 Consideration for creating a storm sewer taxing district in the Northwest watershed. Based on the potential for development in this area we feel a storm sewer taxing district should be considered. We would ask for your opinion and direction on this issue. This was the only watershed in the City not placed under the Storm Sewer Taxing District. 9.5 Wetland Conservation Act Counties throughout the state receive block grants for administering the Wetland Conservation Act (WCA) of 1991. The counties must match (at a 1:1 share) the amount of the block grant funds. The match can be soft costs, ie., time spent by personnel in administering the WCA. Last year Wright County received $36,000 in the form of a WCA block grant (per John Jaske, Board of Water and Soils Resources). We feel that the City's Finance Director should determine the City's costs for 1995 in administering the WCA. We would then compose a letter to the Wright County Boards of Commissioners request 1/2 of this amount (1:1 match). If the county refuses to compensate the City, the matter could then be brought to BWSR. There is a chance legislation could be considered in the 1996 Legislative session for providing funds to cities who administer the WCA, however, we can't approach BWSR on this without first attempting to retrieve costs from the County. We will be at the 11 /13/95 Council meeting to discuss this matter further. 9.6 Miscellaneous Engineering Items agenda11.28 RESOLUTION NO. CITY OF OTSEGO RESOLUTION ORDERING PREPARATION OR REPORT ON IMPROVEMENT WHEREAS, the Otsego Creek Authority has petitioned the Otsego City Council to assume the responsibility for work on a project related to Otsego Creek, AND WHEREAS, said work involves the replacement of two large culverts, one under 83rd Street and Mason Avenue and one under Randy Pouliot's driveway at 8457 Mason Avenue, and also the cleaning and debris removal from Otsego Creek between Pouliot's driveway and the 87th Street driveway, AND WHEREAS, the Council previously approved the expenditure for the preparation of a Minnesota Department of Natural Resources (Mn/DNR) permit for said work, AND WHEREAS, said permit was applied for and approved under Mn/DNR permit number 95-3231. Said permit expires on November 30, 1996. AND WHEREAS, it is proposed to utilize a tax levy against the properties within the storm sewer taxing district, pursuant to Minnesota Statutes, Chapter 444, NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF OTSEGO, MINNESOTA: That the proposed improvement be referred to Hakanson Anderson Associates, Inc. for study and that they are instructed to report to the council with all convenient speed advising the council in a preliminary way as to whether the proposed improvement is feasible and as to whether it should best be made as proposed or in connection with some other improvement, and the estimated cost of the improvement as recommended. Adopted by the council this day of 1995. Mayor Clerk otsego.res 9.1 Hakanson 1111 Anderson Assoc., Inc. 222 Monroe Street Anoka. Minnesota 55303 612/427-5860 r' 9.2 Engineers, Surveyors & Landscape Architects I N V O I C E INVOICE NO: Il bSS TO: City of Otsego - OT501v c/o Elaine Beatty, Clerk/Zoning Adm U 8899 Nashua Ave NE INVOICE DATE: Otsego, Mn 55330 Oct 17, 1995 PROJECT: Municipal Well #1, Imp Project #94-3 DESCRIPTION OF SERVICES AMOUNT Date of Service: 7/17/95 - 9/30/95 Engineering services provided at well site and school building as requested by School District officials and/or School Architect. Item 1 -Well Site/School Building (See Attached Time Sheets) TOTAL AMOUNT DUE THIS INVOICE $2,379.65 WHITE ORIGINAL YELLOW PLEASE RETURN WITH PAYMENT GREEN FILE COPY :n I Hakanson Anderson Assoc., Inc. 222 Monroe Street Anoka. Minnesota 55303 612/427-5860 I N V O I C E TO: City of Otsego c/o Elaine Beatty, Deputy Clerk 8899 Nashua Ave NE Otsego, Mn 55330 PROJECT: Municipal Well #1, Imp Project #94-3 DESCRIPTION OF SERVICES 9.2 Engineers, Surveyors & Landscape Architects INVOICE NO: OT501w U INVOICE DATE: Oct 17, 1995 Date of Service: 6/5/95 — 9/30/95 Additional services provided at well site, including hourly services on electrical and controls contract. Item 2 .Item 3 -Item 4 Item 5 Pump Failure — Labor and Expenses Flushing Lines Preparation of O&M and Emergency Services - Labor &Expenses Imp Proj 94-3C Electrical & Controls (See Attached Time Sheets) TOTAL AMOUNT DUE THIS INVOICE AMOUNT $1,263.38 731.50 792.75 313.50 $3,101.13 WHITE ORIGINAL YELLOW PLEASE RETURN WITH PAYMENT GREEN FILE COPY Hakanson Anderson Assoc., Inc. 222 Monroe Street Anoka, Minnesota 55303 612/427-5860 Engineer Surveyors & Landscape Architects 9.2 WHITE ORIGINAL YELLOW PLEASE RETURN WITH PAYMENT GREEN FILE COPY Hasa 'so on Anderson Assoc., Inc. 222 Monroe Street Anoka. Minnesota 55303 612/427-5860 Engineers, Surveyors & Landscape Architects I I N V O I C E TO: INVOICE NO: City of Otsego OT501x c/o Elaine Beatty, Clerk/Zoning Adm U INVOICE DATE: 8899 Nashua Ave NE Otsego, Mn 55330 Octo 17, 1995 PROJECT: Municipal Well #1 & Appurtenances, Imp Project #94-3 DESCRIPTION OF SERVICES AMOUNT Date of Service: 4/11/95 - 10/2/95 Engineering services to construction observation. Imp Proj 94-3a Traut Wells - Final Payment $75,150.50 $75,150.50 x 10.7% x 100% $8,041.10 Imp Proj 94-3b Ron Larson Excavating Inc. $72,437.29 $72,437.29 x 10.8% x 100% 7,823.23 Total Amount Per Contract $15,864.33 Less Prior Invoices OT501a (668.58) OT501b (699.68)- OT2:11-43g $3085.76 less mtgs (572.37) (2,513.39) OT501c (8,270.80) OT501i (1,519.05) OT5011 (1,146.24) OT5010 (823.21) TOTAL AMOUNT DUE THIS INVOICE $223.38 WHITE ORIGINAL YELLOW PLEASE RETURN WITH PAYMENT GREEN FILE COPY ��NNE�r7 a til OF TPd'yd' Minnesota Department of Transportation Transportation Building 395 John Ireland Boulevard Saint Paul. Minnesota 55155-1899 October 23, 1995 Ms. Elaine Beatty City Clerk of Otsego C: Hall: 8899 Nashua Ave. N.E. Otsego, MN 55330 In reply refer to: 7300 State Proj. No. 8680 County of Wright Notice of Release of a portion of Trunk Highway No. 94 Release No. 1082 Dear Ms. Beatty: 296-6967 Attached is a Notice of Release of a portion of Trunk Highway No. 94. This will be effective November 1, 1995, and the description reads as follows: Beginning in the City of Otsego at a point located approximately 33 feet west of the southeast corner of Section 26, Township 121 North, Range 24 West; thence westerly and northerly along the centerline of a relocated township road Jalger Ave. N.E. to a point located approximately 650 feet north of the southeast corner of the Southwest Quarter of the Northwest Quarter of Section 27, Township 121 North, Range 24 West; thence continue west along the centerline of a road connection for approximately 1320 feet and there terminating. The subject portion of road reverts to the jurisdiction of the City of Otsego in accordance with Minnesota Statutes, Section 161.16 and 161.24 (and Acts amendatory thereto). If you require additional information, call Mr. Neal Bartelt, Office of Right of Way and Surveys, at the above number, or write this office. Sincerely, K. F. Rasmussen, Director Office of Right of Way and Surveys Enclosure: Release No. 1082 An equal opporlunity employer CHARLES J VAN HEEL 20600 COUNTY ROAD 81 ROGERS MN 55374 612-428-4466 November 6, 1995 Norman F Freske, Mayor City of Otsego 8889 Nashua Avenue NE Otsego MN 55330 Ref: STMA Hockey Association Arena Subj: Building Site and Financing Dear Mayor Freske: I D [ED YEE FNOU 13 3 We are a determined group and are getting wiser as we go along. We have had two major setbacks in our 1995 efforts to build an arena: First, the land which John Daniels so graciously donated, did not work; the soil correction costs were beyond what we could afford. Second, the contractors financing did not materialize so we had to abandon the building plan for the 95/96 season. On the positive side, we have the steel secured for our new facility and a building plan for 1996. Also we have ample time to organize our efforts allowing for options and alternatives. We would like your assistance in reviewing and listing possible building sites within your community and also any financial assistance available in your community. We are interested in exploring all options you may have. If you have any qestions, please feel free to call anyone of the following. Pat Adkins, Pres.-STMA Hockey Assoc Hm497-3988 Bus497-3775 Brian Mashuga-STMA Hockey Coach Hm497-9507 Bus497-2655 Pete Sharber Jim Valerius Chuck Van Heel Dan Wagner Sincerely �L Chuck Van Heel Hm497-3949 Bus4974640 Hm4974256 NA Hm497-3172 Bus4284466 Hm4974767 Bus -972-3391 NORTHWEST ASSOCIATED CONSULTANTS INC COMMUNITY PLANNING - DESIGN - MARKET RESEARCH 14 November 1995 AGREEMENT FOR PROFESSIONAL PLANNING SERVICES THIS AGREEMENT entered into this day of 1995, by and between the CITY OF OTSEGO, MINNESOTA, hereinafter referred to as the "City", and NORTHWEST ASSOCIATED CONSULTANTS, INC., hereinafter referred to as the "Planner". WITNESSETH: ARTICLE 1. AREA OF SERVICE That the City does hereby agree to employ the Planner to render professional technical planning and development assistance services to the extent and kind described in Article 2 below, in and for the City of Otsego, Minnesota. ARTICLE 2. SERVICES OF THE PLANNER The Planner hereby agrees to render the professional services as follows.- A. ollows: A. Technical Planning and Development Assistance 1. Provide general assistance and consultation to the City, regarding the City's planning, zoning, subdivision, and development projects plus related functions and activities. Services shall be rendered on an as needed basis to be determined by the City and authorized by the Zoning Administrator. Any services performed under this Article will be billed on a monthly basis as per Article 4.A of this Agreement. 2. The Planner will prepare written reports, provide general development assistance and make recommendations on matters as described by the City through the Zoning Administrator. B. Meeting Attendance 1. The Planner shall prepare for and attend staff meetings as directed by the Zoning Administrator. 5775 WAYZATA BOULEVARD, SUITE 555 ST, LOUIS PARK, MINNESOTA 554 1 6 PHONE 6 1 2-595-9636 FAX 6 1 2-595-9637 City of Otsego Page Two 2. The Planner shall prepare for and attend City meetings as directed by the Zoning Administrator. 3. The Planner shall prepare for and attend special meetings as directed by the Zoning Administrator. ARTICLE 3. SERVICES OF THE CITY The City hereby agrees to furnish to or make available for examination or use by the Planner, without charge, the following: A. All material and documents applicable to projects in which the Planner is involved. Such material and documents shall be submitted to the Planner within a reasonable period of time before any meeting at which they are to be considered. When written reports are required, all material and documents shall be submitted to the Planner no less than ten (10) working days or within a reasonable period of time to permit proper evaluation prior to the meeting at which they will be considered. B. Available material and documents, as determined by the Planner, that are necessary for the services to be performed. ARTICLE 4. PAYMENT A. Technical Planning and Development Assistance The City hereby agrees to pay the Planner for professional services included in Article 2.A of this Agreement as follows: 1. The payment of these services shall include mileage, supplies, postage, graphic material, printing and labor according to the attached rate schedule. Labor involving City initiated projects as contrasted to private development projects shall be charged at a fifteen (15) percent reduction in hourly rates. The fee schedule, as provided in Attachment A, shall serve as the basis for charges made. 2. If the City finds it necessary to abandon requested work, the City shall notify the Planner in writing and the Planner shall be compensated for all work completed and materials expended. City of Otsego Page Three 3. The Planner shall submit a statement of services rendered under Article 2.A on a monthly basis, payable by the City within thirty (30) days of receipt of an invoice showing work completed. B. Meeting Attendance The City hereby agrees to pay the Planner for professional services included in Article 2.13 of this Agreement an amount of Two Hundred Dollars ($200.00) for company principals, directors and associates and One Hundred Fifty Dollars ($150.00) for professional support staff per public, staff, or special meeting, based upon invoices received documenting work completed. ARTICLE 5. OTHER PARTIES A. It is mutually agreed that this Agreement is not transferable by either party to a third party without the written consent of the other. B. The Planner's reports and other materials prepared in the performance of this Agreement are instruments of services and remain the property of the City. However, any further distribution of these reports by the City must note the Planner as the source. ARTICLE 6. TERMINATION A. This Agreement shall be terminated at any time by either party upon thirty (30) days written notice. The Planner shall be compensated for all work completed and materials expended upon the date of termination by the City. B. This Agreement shall not be effective until duly executed by both parties hereto and shall be in effect until terminated by either party. City of Otsego Page Four NORTHWEST ASSOCIATED CONSULTANTS, INC. Licht, Presid, CONDITIONS HEREIN AGREED TO: CITY OF OTSEGO, MINNESOTA Norman F. Freske, Mayor Elaine Beatty, City Clerk Please Sign and Return One Copy Date Date Date NORTHWEST ASSOCIATED CONSULTANTS, INC. RATE SCHEDULE* Effective 1 July 1993 STAFF MEMBER RATE PER HOUR Principals (Directors).......................$50.00 to $95.00 Associates...................................$50.00 to $95.00 Senior Analyst ............................... Senior Landscape Architect ................... Senior Planner.. :****''***'*''*********'* .... $35.00 to $60.00 Senior Urban Designer ........................ Senior Public Administration Specialist..... Analyst....................... Landscape Architect .......................... Planner......................................$20.00 to $45.00 Urban Designer ............................... Public Administration Specialist ............. Aide......................................... Technician...................................$15.00 to $35.00 Secretary .................................... Outside Consultants ..........................Per Job Basis Supplies.....................................Actual Cost + 150 Mileage......................................$.35 Per Mile Expert Testimony.............................Hourly Rate - Minimum Charge $500.00 * Classification ranges and individual staff rates are subject to change on a semi-annual calendar year basis. Claims List for Approval CLAIM TOTAL TO 11 -QM QATn PnP I!H6T DI IRPnSF L1 TF iyI1MRFR f I �T ICMA RETIREMENT TRUST DEDUCTIONS PAY PERIOD 11/18/95 11/20/95 1129 300.0C PUBLIC EMPLOYEES RETIREMENT FUND EMPLOYEE/EMPLOYER SHARE 11/18/95 11/20/95 1130 689.3c BANK OF ELK RIVER FED.LJITH,SS,MEDICARE-11/18/95 11/20/95 1131 2,027.4E MN DEPT OF REVENUE NOVEMBER WITHHOLDING 11/20/95 1132 799.6 STATE CAPITAL CREDIT UNION F so ITTATTnN DEDUCTION PAY PERIOD 11/18/95 11/20/95 /211/Q5 1133 4 100.0E 1()Cti Sr APFnRnAr_j BREZE INDUSTRIES NOVEMBER SERVICE- LEATHER PALM GLOVES 11 -11Z 11/20/95 1135 28.7E EAST TONKA SANITATION OCTOBER RECYCLING 11/20/95 1136 291.2E _cf, '!! TRUCYIMG, OCTOBER Dc(`yP'I TWG II /2n/95 1137 1 11-50 c; G TEXTILE LEASING SYSTEMS UNIFORMS,SHOP TOWELS,MATS,TOWELS 11/20/95 1138 251.62 -NAPA QF PAMIDA €1-14 RIVER TAIC INC SUPPLIES I1/220 Loa 11/20/95 ii4i 1142 17' 7/ 8.39 RINKE-NOONAN LEGAL SERVICES -ANNEXATION 11/20/95 } L:0 /Q F3 1143 4 4 693.00 } } 47 -ARG€T WRIGHT STOR€5 COUNTY SHERIFF'S DEPT SUFfs€ I€S OCTOBER SERVICES } 11/20/95 } i 1145 7,786.67 WRIGHT COUNTY HIGHWAY DEPT SIGNS & POSTS 11/20/95 1146 380.09 QQV€F4,MF_= 1T TRAIWItdc; 1-0MR1'T€R a MPQ211lm 11.1-1 61",;5 }}17 JONES INTERCABLE ROW 37TH & ODEAN PROJECT 11/20/95 1148 2,072.38 JEROME KOLLES DAMAGES REGARDING 37 & ODEAN PROJT. 11/20/95 1149 750.00 PAP7WIL6 6A4r-n9gir-w -SAB€R-I F- ,:4 L- S€RI'lQRS II,/28,/!;6 ii5G 4 53c 9n Claims List for Approval For the period 11/20/95 to 11/20/95 CLAIM TOTAL TO WHOM PAID FOR WHAT PURPOSE DATE NUMBER CLAIM DELTA DENTAL DECEMBER PREMIUM 11/20/95 1151 179.90 DENNIS FEHN GRAVEL & EXCAVATING INC FINAL PAYMENT -PARK DEVELOPMENT 11/20/95 1152 10,619.00 WRIGHT COUNTY RECORDER RECORDING FEES 11/20/95 1153 58.50 AN KA RAMSEY COMM1NTTY COIL FGF M MT SKISEMINARS 11/20/95 1154 195.00 LEAGUE OF MN CITIES POLICY ADOPTION CONF.-SUZ.ACKERMAN 11/20/95 1155 25.00 POSTAGE BY PHONE POSTAGE FOR METER 11/20/95 1156 150.00 TOTAL FOR MONTH TOTAL YEAR TO DATE 43,580.4 640,865.2