04/18/2017 - City Council RegularAGENDA
EAGAN CITY COUNCIL
EAGAN MUNICIPAL CENTER BUILDING
APRIL 18, 2017
6:30 P.M.
I. ROLL CALL AND PLEDGE OF ALLEGIANCE
II. ADOPT AGENDA
III. RECOGNITIONS AND PRESENTATIONS
IV. CONSENT AGENDA (Consent items are acted on with one motion unless a request is made for
an item to be pulled for discussion)
A. APPROVE MINUTES
B. PERSONNEL ITEMS
C. APPROVE Check Registers
D. APPROVE Contracts
E. APPROVE agreement to allow HealthEast to house an ambulance at Fire Station Three
F. APPROVE a Resolution to Accept a Donation from the Eagan Lion's Club in the amount of
$10,000 for the Fire Department and authorize the necessary Budget Adjustments
G. APPROVE Final Payment, Contract 16-14, Central Maintenance Campus—Salt Storage Building
H. AWARD Contract 17-14, Citywide Traffic Signal & Street Light Painting
I. APPROVE Joint Powers Agreement with Dakota County for Project 1251 (Lexington Avenue/
Lone Oak Road Intersection Improvements - County Project No. 26-52)
J. APPROVE Water Main Interconnection Agreement with the City of Inver Grove Heights
K. APPROVE resolution to accept donation from Minnesota Valley In -Fisherman Club - School of
Fish Class
L. REJECT Bids for Contract 17-08, Vikings Parkway Streetlight Materials Purchase
M. APPROVE resolution to accept a fabric donation from Debra Haupt for Eagan Forward
N. AWARD Contract 17-10 to ComLink Midwest LLC for the extension of fiber into Northeast Eagan
development area
0. APPROVE Final Plat for Cloverleaf Cold Storage
P. ADOPT resolution approving Second Amended and Restated Development Agreement with MG
Eagan, LLC
Q. Approve a Resolution to accept a grant from the Metropolitan Regional Arts Council in the
amount of $5,000 for a Community Arts Grant
R. APPROVE Project 1176, Community Center Parking Lot Improvements
S. APPROVE a Sound Amplification Permit for a Cinco de Mayo event at La Fonda de Los Lobos
located at 3665 Sibley Memorial Highway
V. PUBLIC HEARINGS
A. APPROVE an amendment authorizing an extension of a Minnesota Investment Fund grant
agreement between the City of Eagan and Minnesota Department of Employment and
Economic Development for the benefit of Databank Holdings LP
VI. OLD BUSINESS
VII. NEW BUSINESS
VIII. LEGISLATIVE/ INTERGOVERNMENTAL AFFAIRS UPDATE
IX. ECONOMIC DEVELOPMENT AUTHORITY
A. CALL TO ORDER
B. ADOPTAGENDA
C. CONSENT AGENDA
1. Approve EDA Minutes
2. Adopt resolution approving Second Amended and Restated Development Agreement
with MG Eagan, LLC
D. PUBLIC HEARING
E. OLD BUSINESS
F. NEW BUSINESS
G. OTHER BUSINESS
H. ADJOURN
X. ADMINISTRATIVE AGENDA
A. City Attorney
B. City Council Comments
C. City Administrator
D. Director of Public Works
E. Director of Community Development
XI. VISITORS TO BE HEARD (for those persons not on the agenda)
XII. CLOSED SESSION
XIII. ADJOURNMENT
City of Eap _ _ _ Me
TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
FROM: CITY ADMINISTRATOR OSBERG
DATE: APRIL 14, 2017
SUBJECT: AGENDA INFORMATION FOR APRIL 18, 2017 CITY COUNCIL MEETING
ADOPT AGENDA
After approval is given to the April 18, 2017 City Council agenda, the following items are in
order for consideration.
Agenda Information Memo
April 18, 2017 Eagan City Council Meeting
CONSENT AGENDA
The following items referred to as consent items require one (1) motion by the City Council. If
the City Council wishes to discuss any of the items in further detail, those items should be
removed from the Consent Agenda and placed under Old or New Business unless the discussion
required is brief.
A. Approve Minutes
Action To Be Considered:
To approve the minutes of April 4, 2017 regular City Council meeting and April 12, 2017 Special
City Council meeting as presented or modified.
Attachments: (2)
CA -1 April 4, 2017 City Council Minutes
CA -2 April 12, 2017 Special City Council Minutes
MINUTES OF A REGULAR MEETING OF THE
EAGAN CITY COUNCIL
Eagan, Minnesota
APRIL 4, 2017
A Listening Session was held at 6:00 p.m. prior to the regular City Council meeting. Present were Mayor
Maguire, Councilmembers Bakken, Fields, and Hansen. Councilmember Tilley was absent.
Keith Shelstad, 4616 Kingsbury Drive, addressed the Council regarding a potential variance request.
A regular meeting of the Eagan City Council was held on Tuesday, April 4, 2017 at 6:00 p.m. at the Eagan
Municipal Center. Present were Mayor Maguire, Councilmembers Bakken, Fields, and Hansen.
Councilmember Tilley was absent. Also present were City Administrator Osberg, Assistant City
Administrator Miller, Communications Director Garrison, Finance Director Pepper, Director of
Community Development Hutmacher, Public Works Director Matthys, Parks and Recreation Director
Pimental, Police Chief McDonald, City Attorney Bauer, and Executive Assistant Stevenson.
AGENDA
Councilmember Hansen moved, Councilmember Fields seconded a motion to approve the agenda as
presented. Aye:4 Nay:0
RECOGNITIONS AND PRESENTATION
There were no recognitions and presentations to be heard.
CONSENT AGENDA
Councilmember Fields moved, Councilmember Bakken seconded a motion to approve the Consent
agenda as presented: Aye: 4 Nay: 0
A. It was recommended to approve the minutes of the March 14 and March 21, 2017 Special City
Council meetings and March 21, 2017 regular City Council meeting as presented or modified.
B. Personnel Items:
1. It was recommended to authorize the hiring of the following seasonal employees: David
Allen, Vernon Ronhovde, Terrance Santori, Esme Baxter, Kelli Peterson, Lindy Pfaltzgraff,
and Lauren Farherty.
C. It was recommended to ratify the check registers dated March 17 and March 24, 2017.
D. It was recommended to approve the ordinary and customary contracts with Summit Companies,
SELECTACCOLINT for VERA, and The Toro Company.
E. It was recommended to approve Change Order No. 1 to Contract 16-15 (Central Maintenance
Campus — Covered Storage Bins) and authorize the Mayor and City Clerk to execute all related
documents.
F. Item was removed.
G. It was recommended to approve the final payment for Contract 16-15 (Central Maintenance
Facility — Covered Storage Bins) in the amount of $11,774.82 to Greystone Construction and
accept the improvements for perpetual City maintenance subject to warranty provisions.
City Council Meeting Minutes
April 4, 2017
2 page
H. It was recommended to approve a one year contract extension for Contract 14-14 (Cedar
Parking Garage and Redevelopment District — Facility Management Services) with Cornerstone
Parking, Inc., and authorize the Mayor and City Clerk to execute all related documents.
I. It was recommended to approve a Joint Powers Agreement with the Dakota County
Transportation Department for Project 1247 (2017 Citywide Trail and Parking Lot
Improvements), including work within County right-of-way in the City of Eagan, and authorize
the Mayor and City Clerk to execute all related documents.
J. It was recommended to approve an amendment to the Sale and Purchase Agreement between
Art Works Eagan and the City of Eagan by changing Section 3 L Contingency Period and Buyer's
Termination to have an expiration date of July 14, 2017.
K. It was recommended to set the interest rate for special assessments levied in 2017 at 4.0%.
L. It was recommended to adopt a resolution approving an Exempt Permit for the YMCA of the
Greater Twin Cities to hold a raffle on July 9, 2017 at 1390 Civic Center Drive.
M. It was recommended to adopt a resolution approving an Exempt Permit for the Eagan Athletic
Association to hold a raffle on May 12-14, 2017 at 4201 Lexington Avenue.
N. It was recommended to approve a Final Subdivision (Tipperary) to create 11 lots upon
approximately 3.8 acres for property 3790 and 3800 Dodd Road, located south of Wescott Road
and east of Dodd Road. It was recommended to approve a Vacation of excess public right-of-
way at 3800 Dodd Road (near Wescott Road).
O. It was recommended to approve a one year extension of Preliminary Subdivision approval for
Summerbrooke to create 33 lots upon approximately 15 acres located at 775 and 785 Diffley
Road.
P. It was recommended to schedule a public hearing on April 18, 2017 for consideration of a one
year extension to the Minnesota Investment Fund Agreement with Databank Holdings LP.
Q. It was recommended to approve a resolution and partnership agreement to accept cash
donation from the following organization, to authorize the necessary budget adjustments and
direct the Mayor and City Clerk to sign the appropriate documents.
R. It was recommended to approve Change Order to 2017 contract with Peters Design Company
and authorize the Mayor and City Clerk to execute all related documents.
S. It was recommended to approve the plans and specifications for Bridle Ridge Park Building
Expansion, and authorize the advertisement for a bid opening to be held at 2:00 p.m. on
Thursday, May 11, 2017.
T. It was recommended to approve an On -Sale Liquor and Sunday License for KRG, LLC doing
business as Green Mill of Eagan, located at 1940 Rahncliff Court.
PUBLIC HEARINGS
Lot 1, Block 1, Cedar Grove Gateway 1't Addition Easement Vacation
City Administrator Osberg introduced the item noting on February 15, 2017, City staff received a petition
from Dan Mueller, Director of Development for the Minnesota Autism Center, requesting the vacation
of a portion of an existing drainage and utility easement on Lot 1, Block 1, Cedar Grove Gateway 15t
Addition, between Highway 13 and Silver Bell Road in west central Eagan.
Public Works Director Matthys gave a staff report and provided a site map.
City Council Meeting Minutes
April 4, 2017
3 page
Mayor Maguire opened the public hearing. There being no public comment, he turned the discussion
back to the Council.
Councilmember Hansen moved, Councilmember Bakken seconded a motion to close the public hearing
and approve the vacation of a portion of a public drainage and utility easement on Lot 1, Block 1, Cedar
Grove Gateway 1St Addition, in west central Eagan, and authorize the Mayor and City Clerk to execute all
related documents. Aye: 4 Nay: 0
OLD BUSINESS
Stonehaven Senior Living Developer, LLC
City Administrator Osberg introduced the item noting this site was part of the overall 100+ acre
Stonehaven project. When the Planned Development Amendment and Final Planned Development
came in for the senior housing site in 2014, the sound attenuation condition was carried over from the
Preliminary Planned Development to the Final Planned Agreement. Osberg noted because the sound
attenuation is a condition of the Planned Development, a request to drop that condition from the
development requires City Council action.
City Planner Ridley gave a staff report.
Mike Hoagberg, the applicant, gave a brief overview of the request and was available for questions.
Mayor Maguire opened the public comment. There being no public comment, he turned the discussion
back to the Council.
Councilmember Fields moved, Councilmember Hansen seconded a motion to remove the condition
from the Final Planned Development requiring sound attenuation construction standards for a multi-
family dwelling located at 1000 Station Trail. Aye: 4 Nay: 0
NEW BUSINESS
Rezoning and Preliminary Planned Development — Ryan Companies US, Inc. /
Mulcahy Companies
City Administrator Osberg introduced the item noting the applicant is proposing to develop an
approximately 19,500 s.f. skills development center located east of the existing Minnesota Autism
Center. The Council is being asked to consider approval of a rezoning from CGD, Cedar Grove District, to
PD, Planned Development, and a preliminary planned development to allow a skills development center,
upon approximately 4 acres located at 2100 Silver Bell Road.
City Planner Ridley gave a staff report and provided a site map.
Dan Mueller, Ryan Companies US, Inc., was available for questions
Mayor Maguire opened the public comment. There being no public comment, he turned the discussion
back to the Council.
City Council Meeting Minutes
April 4, 2017
4 page
Councilmember Bakken moved, Councilmember Fields seconded a motion to approve a Rezoning from
CGD, Cedar Grove District, to PD, Planned Development, upon approximately 4 acres located at 2100
Silver Bell Road. Aye: 4 Nay: 0
Councilmember Bakken moved, Councilmember Fields seconded a motion to approve a Preliminary
Planned Development to allow a skills development center, upon approximately 4 acres located at 2100
Silver Bell Road, subject to the following conditions as amended: Aye: 4 Nay: 0
1. A written Preliminary Planned Development Agreement shall be executed and recorded with
the County Recorder's office. The following exhibits are necessary for the Preliminary PD
Agreement.
• Preliminary Site Plan
• Preliminary Building Elevations
• Preliminary Landscape Plan
• Preliminary Site Lighting Plan
• Preliminary Signage Plan
A written Final Planned Development Agreement shall be executed and recorded with the
County Recorder's office prior to issuance of a building permit. Proof of recording shall be
provided to the City. The Final Planned Development Agreement shall include the following
exhibits:
• Final Site Plan
• Final Building Elevations
• Final Landscape Plan
• Final Site Lighting Plan
• Final Signage Plan
3. The Preliminary Planned Development shall have a 5 -year term.
4. This development shall be subject to a cash and trails parks dedication payable at the time of
Building Permit at the rates then in effect.
5. The applicant shall submit a revised Photometric Plan with total pole heights not to exceed 20'
and a maximum 1 foot-candle at the western property line. All parking lot lighting shall provide
a minimum of 0.5 foot-candles throughout, with an average to minimum ratio of not more than
4.
6. Rooftop mechanical units shall be shown on the Building Elevations at the time of Final Planned
Development, and placement of units 20' from the building edge and parapet height shall be
demonstrated on the permit plans. If these measures alone do not fully screen some
equipment, additional screening measures shall be employed in accordance with City Code.
7. Detailed sign plans shall be submitted with the Final Planned Development including
dimensions, type of construction, and how the signs are to be lit. Conformance with City Code
standards will be confirmed at that time. All signs shall require a Sign Permit prior to
installation.
8. The type of Wall signage shall comply with City Code standards, located on the north and south
elevations only.
9. The monument sign location shall be at least 10' from the property line and outside of the utility
easement area. The height of the sign shall not exceed 7'. The base shall be landscaped and
match the principal building materials. Design plans for the monument sign shall be provided at
the time of Final Planned Development.
City Council Meeting Minutes
April 4, 2017
5 page
10. Building address numbers shall be installed consistent with the provisions of Section 2.78 of City
Code.
11. A detailed grading, drainage, erosion, and sediment control plan shall be prepared in accordance
with current City standards and codes prior to Building Permit approval.
12. All erosion/sediment control plans submitted for development and grading permits shall be
prepared by a designer who has received current Minnesota Department of Transportation
(MNDOT) training, or approved equal training as determined by the City Engineer in designing
storm water pollution prevention plans.
13. All personnel responsible for the installation of erosion/ sediment control devices, and the
establishment of vegetation for the development, shall have received Erosion/Sediment Control
Inspector/Installer certification through the University of Minnesota, or approved equal training
as determined by the City Engineer.
14. Erosion control measures shall be installed and maintained in accordance with City code and
engineering standards.
15. This development shall meet the City's Post Construction Stormwater Management
Requirements (City Code §4.34) for stormwater management and surface water quality,
including Runoff Rate Control and 1.1" Volume Control of the site's new impervious surface area
and any other disturbed soils that are not remediated following an approved Soil Management
Strategy.
16. The applicant shall modify infiltration basin construction details and notes to clarify appropriate
sub -soil over -excavation depth, bioretention soil media replacement, sub -soil ripping,
construction notes to prevent equipment within the basin during and after construction, live
planting of the basin bottom, effective erosion control at base and top of side -slopes, etc. in
accordance with Public Works standards.
17. Prior to proceeding with land disturbing activity, the Property Owner shall enter into a long-
term stormwater management system maintenance agreement with the City, detailing the
annual inspection and maintenance required to occur to ensure proper operation and
performance of the permanent stormwater management system on each parcel, in a form
acceptable to the City Attorney.
18. Before the city returns any Stormwater-related Performance Guarantee Fees on the
development site, the applicant shall provide the City Engineer as -built plans that demonstrate
that all constructed stormwater conveyance structures, stormwater management facilities
(sumps, infiltration basin, etc.) conform to design and/or construction plans, as approved by the
City. As -built volumes (for retention and detention) shall be provided for the
infiltration/bioretention basin. The applicant shall submit to the City Engineer certification that
the stormwater management facilities have been installed in accordance with the plans and
specifications approved. This certification shall be provided by a Professional Engineer licensed
in the State of Minnesota.
19. The applicant shall provide hydrant spacing and locations in accordance with City Fire
Department and Public Works standards.
20. The applicant shall submit a proposal/infrastructure plan to be approved by staff to provide
telecommunications fiber to the premises (FTTP), for incorporation into the Final Planned
Development Agreement. This development shall include the installation of fiber optic cable in
its construction plans at the time of Building Permit.
21. Restoration of the street, curb and gutter, boulevard, and sidewalk for the new parking lot
access shall be performed in a manner acceptable to the City Engineer.
City Council Meeting Minutes
April 4, 2017
6 page
22. Cross -easements for ingress/egress and shared parking shall be executed in a form acceptable
to the City Attorney.
23. "No Parking/Fire lane" signage shall be installed in the parking lot and driveways, per Fire
Department standards, to ensure emergency vehicle access.
24. This development shall be responsible for the acquisition of all regulatory agency permits
required by the affected agency prior to Building Permit approval.
25. This development shall accept its financial obligations as defined in the staffs report in
accordance with the Final Plat dimensions and the rates in effect at the time of Building Permit.
26. The applicant shall ensure the survival of preserved trees via protection of the tree's critical root
zones through the placement of required Tree Protective measures (i.e. orange colored silt
fence or 4 foot polyethylene laminate safety netting), to be installed at the Drip Line or at the
perimeter of the Critical Root Zone, whichever is greater.
27. The applicant shall ensure the survival of preserved tree's critical root zones through the
placement of required Tree Protective measures (i.e. orange colored silt fence or 4 foot
polyethylene laminate safety netting), to be installed at the Drip Line or at the perimeter of the
Critical Root Zone, whichever is greater, of significant trees/woodlands to be preserved on-site.
28. The applicant shall contact the City Forestry Division and set up a pre -construction site
inspection at least five days prior to the issuance of the grading permit to ensure compliance
with the approved Tree Preservation Plan and placement of the Tree Protection Fencing.
29. The applicant shall clarify the future impervious additions to the property at time of Final
Planned Development.
30. The applicant shall enter into a Payment in lieu of Taxes Agreement (PILOT) under the terms
proposed by the applicant in their letter dated March 21, 2017, and in a form acceptable to the
City Attorney.
Planned Development Amendment — Prime Therapeutics (United Properties)
City Administrator Osberg introduced the item noting the site is within the Boulder Lakes Planned
Development, which was established in 2006 and called for a multi -story office use on the 2900 Ames
Crossing Road parcel. The Planned Development was amended in 2015 to allow two single -story
office/warehouse buildings on this lot. Prime Therapeutics is proposing a 5 -story 410,000 s.f. office
building on the property located at 2900 Ames Crossing Road, and is proposing parking as a principal
use on adjacent property at 505 Shanahan Way.
Gordy Stofer III, Eagan Heights LLC, was available for questions.
Mayor Maguire opened the public comment. There being no public comment, he turned the discussion
back to the Council.
Councilmember Fields moved, Councilmember Bakken seconded the motion to approve a Planned
Development Amendment to change the use and Site Plan from office/warehouse to multi -story office
for property located at 2900 Ames Crossing Road, subject to the following conditions: Aye: 4 Nay: 0
1. A written Preliminary Planned Development Agreement shall be executed and recorded with
the County Recorder's office. The following exhibits are necessary for the Preliminary PD
Agreement.
• Preliminary Site Plan
City Council Meeting Minutes
April 4, 2017
7 page
• Preliminary Building Elevations
• Preliminary Landscape Plan
• Preliminary Site Lighting Plan
• Preliminary Signage Plan
2. A written Final Planned Development Agreement shall be executed and recorded with the
County Recorder's office prior to issuance of a building permit. Proof of recording shall be
provided to the City. The Final Planned Development Agreement shall include the following
exhibits:
• Final Site Plan
• Final Building Elevations
• Final Landscape Plan
• Final Site Lighting Plan
• Final Signage Plan
3. The Preliminary Planned Development shall have a 5 -year term.
4. This development shall be subject to a cash and trails parks dedication payable at the time of
Building Permit at the rates then in effect.
5. The applicant shall submit a revised Photometric Plan with total pole heights not to exceed 20'
and a maximum 1 foot-candle at the western property line. All parking lot lighting shall provide
a minimum of 0.5 foot-candles throughout, with an average to minimum ratio of not more than
4.
6. Rooftop mechanical units shall be shown on the Building Elevations at the time of Final Planned
Development, and placement of units 20' from the building edge and parapet height shall be
demonstrated on the permit plans. If these measures alone do not fully screen some
equipment, additional screening measures shall be employed in accordance with City Code.
7. Detailed sign plans shall be submitted with the Final Planned Development including
dimensions, type of construction, and how the signs are to be lit. Conformance with City Code
standards will be confirmed at that time. All signs shall require a Sign Permit prior to
installation.
8. The type of Wall signage shall comply with City Code standards, located on the north and south
elevations only.
9. The monument sign location shall be at least 10' from the property line and outside of the utility
easement area. The height of the sign shall not exceed 7'. The base shall be landscaped and
match the principal building materials. Design plans for the monument sign shall be provided at
the time of Final Planned Development.
10. Building address numbers shall be installed consistent with the provisions of Section 2.78 of City
Code.
11. A detailed grading, drainage, erosion, and sediment control plan shall be prepared in
accordance with current City standards and codes prior to Building Permit approval.
12. All erosion/sediment control plans submitted for development and grading permits shall be
prepared by a designer who has received current Minnesota Department of Transportation
(MNDOT) training, or approved equal training as determined by the City Engineer in designing
storm water pollution prevention plans.
13. All personnel responsible for the installation of erosion/ sediment control devices, and the
establishment of vegetation for the development, shall have received Erosion/Sediment Control
Inspector/Installer certification through the University of Minnesota, or approved equal training
as determined by the City Engineer.
City Council Meeting Minutes
April 4, 2017
8 page
14. Erosion control measures shall be installed and maintained in accordance with City code and
engineering standards.
15. This development shall meet the City's Post Construction Stormwater Management
Requirements (City Code §4.34) for stormwater management and surface water quality,
including Runoff Rate Control and 1.1" Volume Control of the site's new impervious surface area
and any other disturbed soils that are not remediated following an approved Soil Management
Strategy.
16. The applicant shall modify infiltration basin construction details and notes to clarify appropriate
sub -soil over -excavation depth, bioretention soil media replacement, sub -soil ripping,
construction notes to prevent equipment within the basin during and after construction, live
planting of the basin bottom, effective erosion control at base and top of side -slopes, etc. in
accordance with Public Works standards.
17. Prior to proceeding with land disturbing activity, the Property Owner shall enter into a long-
term stormwater management system maintenance agreement with the City, detailing the
annual inspection and maintenance required to occur to ensure proper operation and
performance of the permanent stormwater management system on each parcel, in a form
acceptable to the City Attorney.
18. Before the city returns any Stormwater-related Performance Guarantee Fees on the
development site, the applicant shall provide the City Engineer as -built plans that demonstrate
that all constructed stormwater conveyance structures, stormwater management facilities
(sumps, infiltration basin, etc.) conform to design and/or construction plans, as approved by the
City. As -built volumes (for retention and detention) shall be provided for the
infiltration/bioretention basin. The applicant shall submit to the City Engineer certification that
the stormwater management facilities have been installed in accordance with the plans and
specifications approved. This certification shall be provided by a Professional Engineer licensed
in the State of Minnesota.
19. The applicant shall provide hydrant spacing and locations in accordance with City Fire
Department and Public Works standards.
20. The applicant shall submit a proposal/infrastructure plan to be approved by staff to provide
telecommunications fiber to the premises (FTTP), for incorporation into the Final Planned
Development Agreement. This development shall include the installation of fiber optic cable in
its construction plans at the time of Building Permit.
21. Restoration of the street, curb and gutter, boulevard, and sidewalk for the new parking lot
access shall be performed in a manner acceptable to the City Engineer.
22. Cross -easements for ingress/egress and shared parking shall be executed in a form acceptable
to the City Attorney.
23. "No Parking/Fire lane" signage shall be installed in the parking lot and driveways, per Fire
Department standards, to ensure emergency vehicle access.
24. This development shall be responsible for the acquisition of all regulatory agency permits
required by the affected agency prior to Building Permit approval.
25. This development shall accept its financial obligations as defined in the staff's report in
accordance with the Final Plat dimensions and the rates in effect at the time of Building Permit.
26. The applicant shall ensure the survival of preserved trees via protection of the tree's critical root
zones through the placement of required Tree Protective measures (i.e. orange colored silt
fence or 4 foot polyethylene laminate safety netting), to be installed at the Drip Line or at the
perimeter of the Critical Root Zone, whichever is greater.
City Council Meeting Minutes
April 4, 2017
9 page
27. The applicant shall ensure the survival of preserved tree's critical root zones through the
placement of required Tree Protective measures (i.e. orange colored silt fence or 4 foot
polyethylene laminate safety netting), to be installed at the Drip Line or at the perimeter of the
Critical Root Zone, whichever is greater, of significant trees/woodlands to be preserved on-site.
28. The applicant shall contact the City Forestry Division and set up a pre -construction site
inspection at least five days prior to the issuance of the grading permit to ensure compliance
with the approved Tree Preservation Plan and placement of the Tree Protection Fencing.
29. The applicant shall clarify the future impervious additions to the property at time of Final
Planned Development.
Councilmember Fields moved, Councilmember Bakken seconded a motion to approve a Planned
Development Amendment to change the use and Site Plan from office/warehouse to parking as a
principal use upon property located at 505 Shanahan Way. Aye: 4 Nay: 0
1. An Amendment to the Boulder Lakes Preliminary Planned Development Agreement shall be
executed and recorded with the Dakota County Recorder's office. Proof of recording shall be
provided to the City. The PD Amendment Agreement shall require the use on the remaining lots
within the PD to be preserved as set forth in the original PD Agreement to maintain
compatibility with the Major Office land use and Research and Development zoning
designations. The PD Amendment Agreement shall include the following exhibits:
a. Site Plan
b. Landscape and Tree Mitigation Plan
c. Site Lighting Plan
2. For purposes of off-site off-street parking as a principal use on Lot 2, Block 1, Boulder Lakes, the
parcel is deemed servient to the principal use located on the dominant parcel of Lot 1, Block 1,
Boulder Lakes 3rd Addition.
3. Parking setbacks shall be provided in accordance with the City's Zoning ordinance. Parking lot
layout and access shall be as depicted on the approved Site Plan.
4. Parking stalls shall be a minimum of 9'x 18', and drive aisles a minimum 24' wide.
5. Park dedication for the development shall be satisfied through cash dedication. The amount
due shall be calculated and collected at the time of Building Permit at the rates then in effect.
6. The existing easement between Lots 1 and 2, Block 1, Boulder Lakes shall be terminated prior to
full occupancy of the new building on Lot 1, Block 1, Boulder Lakes 3`d Addn.
7. A cross parking easement/declaration agreement shall be provided, in a form acceptable to the
City Attorney, and shall contain a provision that the agreement cannot be terminated without
approval from the City.
8. No building permit shall be issued for the servient parcel, Lot 2, Block 1 Boulder Lakes, without
first obtaining approval of a PD Amendment to permit a building on the lot. Through the PD
Amendment process, evaluation of the parking needs for the servient and dominant parcel can
be reevaluated by the City to determine if development of the servient parcel can proceed.
LEGISLATIVE/ INTERGOVERNMENTAL AFFAIRS UPDATE
There was no legislative/intergovernmental affairs update.
City Council Meeting Minutes
April 4, 2017
10 page
ADMINISTRATIVE AGENDA
There were no administrative agenda items to be heard.
There were no visitors to be heard.
VISITORS TO BE HEARD
ADJOURNMENT
Councilmember Hansen moved, Councilmember Fields seconded a motion to adjourn the meeting at
6:57 p.m. Aye: 4 Nay: 0
Date
Mayor
City Clerk
MINUTES
SPECIAL CITY COUNCIL MEETING
APRIL 12, 2017
6:00 P.M.
EAGAN MUNICIPAL CENTER
City Councilmembers present: Mayor Maguire, Councilmembers Fields, Bakken, Hansen and Tilley.
City staff present: City Administrator Osberg
ROLL CALL AND ADOPTION OF THE AGENDA
Councilmember Fields moved, Councilmember Tilley seconded a motion to adopt the agenda as
presented. Aye:5 Nay:0
VISITORS TO BE HEARD
There were no visitors to be heard.
INTERVIEW ADVISORY COMMISSION APPLICANTS
The City Council interviewed 18 applicants for the various openings on the Advisory Planning
Commission, Advisory Parks and Recreation Commission, Airport Relations Commission, Energy and
Environment Advisory Commission, and Eagan -Inver Grove Heights Watershed Management
Organization.
It was noted that 13 incumbents reapplied. Ten incumbents have opted to participate in a survey about
their experiences to date on their respective commission rather than participate in a formal interview.
Two incumbents have elected to schedule an interview.
City Administrator Osberg noted a second evening of interviews will take place on Tuesday, April 25 at 6
p.m. to interview the remaining applicants
Councilmember Fields moved, Councilmember Tilley seconded a motion to adjourn the meeting at 9:15
p.m. Aye:5 Nay:O
Date
Mayor
City Clerk
Agenda Information Memo
April 18, 2017 Eagan City Council Meeting
CONSENT AGENDA
B. Personnel Items
ITEM 1.
Action To Be Considered:
Authorize the hiring of the following seasonal employees:
Kosel, Benjamin A
Rausch, Robert W
Weldon, Brady N
St Martin, Benjamin
ITEM 2.
Action To Be Considered:
Landscape Crew
Park Maintenance
Park Maintenance
Park Maintenance
Authorize the hiring of Cavan Denning, Water Quality Intern.
Facts:
➢ This position was budgeted in 2017
ITEM 3.
Action To Be Considered:
Authorize the hiring of Ashley Gengler, Finance Intern.
Facts:
➢ This position was budgeted in 2017
ITEM 4.
Action To Be Considered:
Accept the resignation of Scott Ingalsbe, Volunteer Firefighter.
Agenda Information Memo
April 18, 2017 Eagan City Council Meeting
CONSENT AGENDA
C. Ratify Check Registers
Action To Be Considered:
To ratify the check registers dated March 31 and April 7, 2017 as presented.
Attachments: (2)
CC -1 Check register dated March 31, 2017
CC -2 Check register dated April 7, 2017
Agenda Information Memo
April 18, 2017, Eagan City Council Meeting
CONSENT AGENDA
D. Approve Contracts
Action To Be Considered:
To approve the ordinary and customary contracts listed below.
Facts:
➢ The contracts listed below are in order for Council approval. Following approval,
the contracts will be electronically executed by the Mayor and City Clerk.
Contracts to be approved:
➢ Retirement Enhancement and Benefit Alternatives Voluntary Employees'
Beneficiary Association (VEBA) Adoption Agreement with SELECTACCOUNT
➢ Lease Agreement with St. Croix Harley-Davidson for the lease of a 2017 Harley-
Davidson Police Motorcycle
Attachments: (0)
The contracts are available from the City Clerk's Office.
Agenda Information Memo
April 18, 2017 Eagan City Council Meeting
CONSENT AGENDA
E. Approve agreement allowing HealthEast Transportation to house an
ambulance at Fire Station Three
Action To Be Considered:
Approve agreement allowing HealthEast Transportation to house an ambulance at Fire
Station Three.
Facts:
➢ HealthEast has housed one ambulance at an Eagan Fire Station since the 1970's.
➢ With our consolidation of fire stations and Fire Station Five closing May 1St,
HealthEast will be relocated to Fire Station Three at Wilderness Run Road and Pilot
Knob Road.
➢ The space includes a garage bay space for their ambulance and an office area for their
paramedics.
➢ This agreement simply formalizes this practice.
➢ The City Attorney's Office has prepared a Memorandum of Understanding to be
approved by the Mayor and Council.
➢ Staff is recommending approval of this agreement.
Attachments: (1)
CE -1 Memorandum of Understanding
MEMORANDUM OF UNDERSTANDING
This Memorandum of Understanding ("Agreement") is made this _ day of April, 2017,
by and between the City of Eagan, a Minnesota municipal corporation (hereinafter the "City");
and HealthEast Care System, a Minnesota non-profit corporation d/b/a HealthEast Medical
Transportation (hereinafter "HealthEast"). (The City and HealthEast are hereinafter collectively
referred to as the "Parties").
WHEREAS, the City currently has bay space and office space available for rent at Fire
Station No. 3 located at 4930 Pilot Knob Road, Eagan, Minnesota 55123 ("Station No. Y); and
WHEREAS, the Parties currently have a Memorandum of Understanding dated July 7,
2015, ("2015 Memorandum of Understanding"); and
WHEREAS, the 2017 market rate for rental space in Eagan for similar space is
approximately $9.00 per square foot for garage space and $12.50 per square foot for office
space; and
WHEREAS, the City will be required to pay its janitorial contractor an additional fee for
cleaning any space rented within Station No. 3; and
WHEREAS, HealthEast is in need of bay space and office space and also has certain
medical equipment and expertise that it can offer members of the City's Fire Department; and
WHEREAS, the City is willing to provide bay space and office space at Station No. 3 and
HealthEast is willing to provide equipment and training in lieu of any rental payment all upon the
terms and conditions contained herein; and
NOW, THEREFORE, this Memorandum of Understanding serves to express a mutual
understanding of the Parties. Although this Memorandum of Understanding is not a legally
binding agreement, the Parties recognize the value of expressing understanding regarding our
collaboration.
TERMINATION OF THE 2015 MEMORANDUM OF UNDERSTANDING. The
Parties agree that the 2015 Memorandum of Understanding shall terminate
on April 18, 2017. The Parties agree that this Agreement supersedes all
prior agreements.
2. USE OF BAY SPACE AND OFFICE SPACE. The City shall make one apparatus
bay (approximately 1,000 square feet), a small office and a shared day
room/kitchen space (approximately 500 square feet) available to
HealthEast throughout the term of this Agreement. The City's Fire Chief
shall solely determine the location of the Bay/Office Space within Station
No. 3.
VALUE OF THE BAY SPACE, AND OFFICE SPACE. The Parties agree that the
2017 rental value of Bay/Office Space is approximately $1,300.00 per
month, plus an additional $200.00 per month for janitorial services
associated with the Bay/Office Space, for a total value of $1,500.00 per
month.
4. SERVICES TO BE PROVIDED BY HEALTHEAST. In exchange for the City
making Bay/Office Space available within Station No. 3 and the City
foregoing the collection of rent associated with the Bay/Office Space,
HealthEast shall provide throughout the term of this Agreement the
following services to the City free of charge:
a. EMT training for Eagan Firefighters that want to upgrade
their level of EMS training from First Responder to EMT
(approximately 10firefighters per year);
b. Continued restocking of supplies used by Eagan
Firefighters responding to medical scenes throughout the
City;
C. Continued exchange of medical equipment used at
medical scenes throughout the City; and
d. Assistance with medical equipment purchases as may be
mutually agreed upon between the Parties.
5. FUNDING. There will be no exchange of funds between the parties in
connection with the services provided under this Memorandum of
Understanding.
6. INDEMNIFICATION. HealthEast shall indemnify and hold the City harmless
from any and all claims, including attorneys' fees, arising out of or related
to HealthFast's use of Station No. 3.
7. TERM OF AGREEMENT. This Agreement shall commence on April 18,
2017, and shall terminate pursuant to Section 8.
S. nitmw nom Either the City or HealthEast may terminate this
Agreement upon thirty (30) days written notice to the other party.
9. NOTICES. Any notice required or permitted under this Agreement shall be
in writing and shall be deemed to be given when and if sent by certified
mail, return receipt requested, postage prepaid, properly addressed as
2
follows, or such other address as may hereafter be designated in writing by
either of the Parties:
If to HealthEast: HealthEast Care System
d/b/a HealthEast Medical Transportation
Attn: Tom Edminson, Director - HEMT
799 Reaney Avenue
St. Paul, MN 55106
If to City: City of Eagan
Attn: Mike Scott, City Fire Chief
3830 Pilot Knob Road
Eagan, MN 55121
10. INSURANCE. All vehicles, equipment and personal property stored by HealthEast
within Station No. 3 is at HealthEast's SOLE RISK. HealthEast understands that
the City will not insure HealthEast's vehicles, equipment and personal property
and that HealthEast is solely obligated under the terms of this Agreement to
insure its vehicles, equipment and personal property. To the extent HealthEast's
insurance lapses or HealthEast does not obtain insurance coverage for the full
value of the vehicle(s), equipment and personal property stored at Station No. 3,
HealthEast agrees that it assumes all risk of loss.
11. No WARRANTIES. The City hereby disclaims any implied or express warranties,
guarantees or representations of the nature, condition, safety or security of Station
No. 3. HealthEast hereby acknowledges that the City does not represent or
guarantee the safety or security of Station No. 3 and this Agreement does not
create any contractual obligation for the City to increase or maintain such safety
or security at Station No. 3.
12. RESTRICTION OF ACCESS TO PROPERTIES. The City reserves the right to restrict
the number of HealthEast personnel that may have access to Station No. 3.
City of Eagan,
a Minnesota municipal corporation
By:
Mike Maguire
Its: Mayor
By:
Christina A Scipioni
Its: Clerk
HealthEast Care System, a Minnesota
non -profs rporation
d/b/a H East Medical Transportation
By:
/E7=
dmmson
Its: Director, HEMI
Agenda Information Memo
April 18, 2017 Eagan City Council Meeting
CONSENT AGENDA
F. Approve a Resolution to Accept a Donation from the Eagan Lion's Club in the
amount of $10,000 for the Fire Department and authorize the necessary
Budget Adjustments
Action To Be Considered:
To approve a resolution to accept a donation from the Eagan Lion's Club in the amount
of $10,000 for the Fire Department and authorize the necessary budget adjustment.
Facts:
➢ The Eagan Fire Department recently received a donation from the Eagan Lion's
Club in the amount of $10,000.
➢ The Lion's Club would like the funds to be used to purchase wellness equipment
for firefighters to use at Fire Station Two.
➢ The attached resolution authorizes the Fire Department to accept the donation.
Attachments: (1)
CF -1 Resolution
EXTRACT OF MINUTES OF MEETING OF THE
CITY COUNCIL OF THE CITY OF EAGAN,
DAKOTA COUNTY, MINNESOTA
A regular meeting of the City Council of the City of Eagan, Dakota County, Minnesota, was
duly held at the Eagan Municipal Center located at 3830 Pilot Knob Road, in said City on April 18,
2017, at 6:30 p.m.
The following members were present: Hansen, Bakken, Fields, Maguire, and Tilley.
Member
introduced the following resolution and moved its adoption:
RESOLUTION ACCEPTING DONATION TO THE CITY OF EAGAN
WHEREAS, the City Council of the City of Eagan encourages public donations to help defray
the costs to the general public of providing services in Eagan; and
WHEREAS, The Eagan Lion's Club has offered to donate $10,000 for use by the City of
Eagan Fire Department; and
WHEREAS, Minnesota Statutes §465.03 requires that all gifts and donations of real or
personal property be accepted only with the adoption of a resolution approved by two-thirds of
the members of the City Council; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Eagan, Dakota County,
Minnesota, that the donation is hereby accepted for use by the City;
BE IT FURTHER RESOLVED, that the City sincerely thanks The Eagan Lion's Club for the
gracious and generous donation.
ADOPTED this 18th day of April, 2017
Mike Maguire, Mayor
ATTEST:
Christina Scipioni, City Clerk
The motion for the adoption of the foregoing resolution was duly seconded by Member
and upon the vote being taken thereon, the following voted in favor:
and the following voted against the same:
WHEREUPON, said resolution was declared duly passed and adopted and was signed by
the Mayor and his signature attested by the City Clerk.
Agenda Information Memo
April 18, 2017 Eagan City Council Meeting
CONSENT AGENDA
G. Contract 16-14, Central Maintenance Campus — Salt Storage Building
Final Payment
Action To Be Considered:
Approve the final payment for Contract 16-15 (Central Maintenance Campus — Salt
Storage Building) in the amount of $30,015.55 to A & B Construction and accept the
improvements for perpetual City maintenance subject to warranty provisions.
Facts:
➢ Project 1206 provided for Phase 1 of a Central Maintenance Facility expansion
and consists of additional heated vehicle storage and equipment bays, enlarged
and updated service bays, as well as a salt storage building.
➢ On March 15, 2016, the City Council awarded the contract to A & B Construction,
for the base bid of $209,371.00.
➢ On January 17, 2017, the City Council approved Change Order 1, which provided
for corrections to the foundation construction needed to address unforeseen soil
conditions and the deletion of the tanker fill arm from the scope of the contract.
This provided an additional cost of $19,547.00 (9.33% of the original contract).
➢ These improvements have been completed, inspected by representatives of the
Public Works Department, and found to be in order for favorable Council action
of final payment and acceptance for perpetual maintenance subject to warranty
provisions.
Attachments (0)
Agenda Information Memo
April 18, 2017 Eagan City Council Meeting
CONSENT AGENDA
H. Contract 17-14, Citywide Traffic Signal Painting
Action To Be Considered:
Receive the quotes and award Contract 17-14 (Citywide Traffic Signal Painting) to OLS
Restoration, Inc., for the Base Bid in the amount of $26,330 and authorize the Mayor
and City Clerk to execute all related documents.
Facts:
➢ Contract 17-14 provides for the reconditioning and painting of City -owned
traffic signals located at the following intersections:
o TH 55 and Eagandale Boulevard
o TH 3 and Red Pine Lane
➢ Contract 17-14 also provides for the reconditioning and painting of 131 city -
owned streetlight poles in the Central Area which were recently retrofitted with
LED light fixtures.
➢ On June 7, 2016, the City Council approved the 5 -year Capital Improvement Plan
for Public Works Infrastructure, Part III (2017-2021) and authorized the initiation
of the public improvement process for the 2017 programmed improvements.
➢ On April 13, 2017, two quotes were received for this project. A copy of the
quote summary is enclosed.
➢ All quotes have been reviewed for compliance with the specifications. The bid
from OLS Restoration, Inc. has been reviewed by the Public Works Department
and found to be in order for favorable Council action.
Attachments (2)
CH -1 Quote Summary
CH -2 Location Map
QUOTE SUMMARY
2017 TRAFFIC SIGNAL PAINTING
CITY CONTRACT 17-14
Quote Date: Thursday, April 13, 2017
Bidders
Total Base Quote
1. OLS Restoration, Inc $ 26,330
2. Pole Painting Plus $ 39,695
$ 26,330 $ 38,490 -31.6%
'Pawing
Lost SIPUr (j'OIf COLirSe
m 3sE
„, Perkiins Restaurant
Eagan 1
,iffy Lube
Go I
Streetlight painting
Alexander's
Mobility Services
$5
149
Thomson Reuters
I S
0 Eagan High School
Rd
Lebanon Hills
Rewortef Pars
C"
Traffic Signal Painting
0
Agenda Information Memo
April 18, 2017 Eagan City Council Meeting
CONSENT AGENDA
I. Project 1251— Lexington Avenue (CSAH 43) / Lone Oak Road (CSAH 26)
Intersection Improvements
Action To Be Considered:
Approve a Joint Powers Agreement with the Dakota County Transportation Department for
Project 1251 (Lexington Avenue (CSAH 43)/Lone Oak Road (CSAH 26) Intersection
Improvements), and authorize the Mayor and City Clerk to execute all related documents.
Facts:
➢ On June 7, 2016, the City Council approved the City's 5 -Year Capital Improvement Plan
(2017-2021 CIP), including the intersection improvements of Lexington Avenue (CSAH 43) /
Lone Oak Road (CSAH 26), with a phased schedule for engineering design and right-of-way
acquisition in 2017, and construction in 2018. These improvements have been
coordinated with the County and are also programmed in the Dakota County
Transportation Department's 5 -Year CIP.
➢ The improvements at the intersection consist of turn lane construction, roadway
expansion, trail reconstruction and traffic signal system upgrades.
➢ The County is proposed to be the lead agency for the design and construction
management of these improvements.
➢ Similar to other cost sharing initiatives between the City and County, a Joint Powers
Agreement has been prepared by the County for formal approval by the City. As set
forth in the agreement and according to County policy, the City's financial responsibility,
after any federal funding, will be 45% of the remaining cost, with Dakota County
financing 55%. The total estimated project cost is $3,507,000, with $2,120,000 of the
cost being addressed by federal funding. The Major Street Fund would finance the
City's share ($624,150) of the remaining costs ($1,387,000).
➢ The agreement has been reviewed by the Public Works Department, is consistent with
past similar agreements reviewed by the Attorney's office, and is in order for favorable
Council action.
Attachments (1)
CI -1 Joint Powers Agreement
Dakota County Contract No. C0028948
JOINT POWERS AGREEMENT FOR
ENGINEERING, RIGHT OF WAY ACQUISITION AND CONSTRUCTION
BETWEEN
THE COUNTY OF DAKOTA
AND
THE CITY OF EAGAN
FOR
STATE PROJECT NO. 019 -626 -024, 195 -020 -
COUNTY PROJECT NO. 26-52
CITY PROJECT NO. 1251
SYNOPSIS: Dakota County and the City of Eagan agree to the reconstruction of the intersection of
County State Aid Highway (CSAH) 26 (Lone Oak Road) and CSAH 43 (Lexington Avenue) with exclusive
dual left turn lanes on the CSAH 43 northbound and southbound approaches to CSAH 26; all in Eagan,
Dakota County.
County Project No. 26-52; City Project No. 1251
Contract No. C0028948
March 22, 2016
THIS AGREEMENT, made and entered into by and between the County of Dakota, referred to in this
Agreement as "the County"; and the City of Eagan, referred to in this Agreement as "the City'; and
witnesses the following:
WHEREAS, under Minnesota Statutes §§ 162.17, subd. 1 and 471.59, subd. 1, two or more
governmental units may enter into an agreement to cooperatively exercise any power common to the
contracting parties, and one of the participating governmental units may exercise one of its powers on
behalf of the other governmental units; and
WHEREAS, CP 26-52 is the reconstruction of the intersection of County State Aid Highway (CSAH) 26
(Lone Oak Road) and CSAH 43 (Lexington Avenue) with exclusive dual left turn lanes on the CSAH 43
northbound and southbound approaches to CSAH 26; and
WHEREAS, Dakota County is the lead agency for CP 26-52 with construction scheduled to begin in
spring 2018; and
WHEREAS, the County applied for and will receive Federal funding for CP 26-52 through the Surface
Transportation Program regional solicitation for roadway reconstruction/modernization; and
WHEREAS, Federal funding in the amount of $2,120,000 has been programmed which will cover a
portion of the Project's construction costs; and
WHEREAS, the County and the City have included this Project in their Capital Improvement Programs
and will jointly participate in the costs of said intersection construction and highway expansion after
applying Federal funds; and
WHEREAS, costs for CP 26-52 will be shared between the City, estimated at $795,600, and the County,
estimated at $972,400, in accordance with the adopted County Policy.
NOW, THEREFORE, it is agreed that the County and the City will share Project responsibilities; and after
deducting Federal funding, jointly participate in the remaining costs associated with the Project, and
related activities as described in the following sections:
1. Engineering. Design engineering including all aspects of the Project (public involvement, agency
involvement, preliminary/final design etc.), surveying, mapping, construction engineering, construction
management, construction inspection and all related materials testing, including the cost of County and
City staff time for these purposes, shall be split based on the County's and City's share of the final
construction costs in accordance with the County's Transportation Plan Cost Participation Policy as of
November 1, 2015. Engineering fees shall not exceed 25 percent of project costs.
011
County Project No. 26-52; City Project No. 1251
Contract No. C0028948
March 22, 2016
2. Construction Items. After deducting Federal funding, the costs for the reconstruction of the
intersection of CSAH 26 (Lone Oak Road) and CSAH 43 (Lexington Avenue) with exclusive dual left turn
lanes on the CSAH 43 northbound and southbound approaches to CSAH 26 shall be shared in the
amount of fifty-five percent (55%) by the County and forty-five percent (45%) by the City. Cost sharing
includes all roadway and highway construction items; replacement or restoration of trails and sidewalks,
landscaping and driveways when affected by construction; replacement or adjustment of water and storm
sewer systems, if required due to reconstruction; mitigation required by state and federal permits
including accessibility requirements; storm sewer, County's share of water pollution best management
practices, based on contributing flows, meeting National Urban Runoff Protection (NURP) standards;
temporary widening or other measures if required as part of traffic control or project staging; replacement
or restoration of fences, landscaping and driveways when affected by construction; replacement or
adjustment of sanitary sewer, water and storm sewer systems, if required due to construction; relocating
or adjusting privately owned utilities when not performed at the expense of the utility; replacement of
roadway lighting, if required due to construction, elements integral to the safe design and operation of the
roadway, and all other construction aspects outlined in the plan except for elements as called out under
this agreement or the current Dakota County Transportation Plan.
3. City Utilities. Except as stated in the above sections of this Agreement, the City shall pay all
other costs for new sanitary sewer, water mains and appurtenances constructed as part of this Project.
Further, the City shall be responsible for the maintenance of all such facilities after completion of the
Project.
4. Plans and St)ecifications. The County is the lead agency for project design and of the Project,
effective upon execution of this Agreement by both Parties. The County shall prepare the complete
plans, specifications and contract documents for County Project 26-47 consistent with State Aid design
standards and the Dakota County Transportation Plan. The City shall approve the plans and
specifications prior to the County advertising for bids. The County Board will award the contract for
construction to the lowest responsive and responsible bidder in accordance with state law.
5. Right -of -Way. The County will undertake all actions necessary to acquire all permanent and
temporary highway right of way, and will acquire all right of way for trail construction, drainage and
ponding, and water pollution control best management practices for the Project. Except as set forth
below, the costs of acquiring highway right of way, including right of way for drainage inlets and outlets,
shall be shared in the amount of 55% by the County and 45% by the City. Any right of way costs for new
sanitary sewer, water mains and appurtenances, and aesthetic elements outside of the right of way
needed for the highway improvements shall be the responsibility of the City. The City will temporarily
assign to the County, for the period of construction, all adjacent city -controlled public easements and real
3
County Project No. 26-52; City Project No. 1251
Contract No. C0028948
March 22, 2016
property and rights-of-way necessary to construct the project. This includes, but is not limited to real
property, sidewalk or trail easements, landscape easements, and drainage and utility easements. City
jurisdiction over City controlled easements and real property will be restored to the City upon final
completion of the construction Project. In addition to the temporary use of all adjacent city -controlled
public easements and real property and rights-of-way, the City shall grant the County any Highway
easements for the Project.
6. Pro�ect Cost Updates. The County will provide updated cost estimates to the City showing the
County and City shares of Project costs annually at the time of Capital Improvement Program
development. Updated cost estimates will also be provided by the County to the City at the following
times:
• prior to approval of the appraised values for any necessary right of way acquisitions,
• prior to advertising a construction contract,
• after bid opening (prior to contract award),
• during construction if total contract changes exceed $25,000,
• once per year following the construction season until the Project is complete.
Project cost estimate updates include actual and estimated costs for engineering, utility relocation, and
construction. The Parties acknowledge that Project cost estimates are subject to numerous variables
causing the estimates to be subject to change and the updates are provided for informational purposes in
good faith. Each agency is responsible for informing their respective councils or boards regarding Project
costs.
7. Payment. The County will administer the contract and act as the paying agent for all payments to
the Contractor. Payments to the Contractor will be made as the Project work progresses and when
certified by the County Engineer. The County, in turn, will bill the City for its share of the Project costs.
Upon presentation of an itemized claim by one agency to the other, the receiving agency shall reimburse
the invoicing agency for its share of the costs incurred under this Agreement within 35 days from the
presentation of the claim. If any portion of an itemized claim is questioned by the receiving agency, the
remainder of the claim shall be promptly paid, and accompanied by a written explanation of the amounts
in question. Payment of any amounts in dispute will be made following good faith negotiation and
documentation of actual costs incurred in carrying out the work.
8. Change Orders and Supplemental Agreements. Any change orders or supplemental agreements
that affect the Project cost participation must be approved by all parties prior to execution of work. Both
Parties shall endeavor to provide timely approval of change orders and supplemental agreements so as
not to delay construction operations.
4
County Project No. 26-52; City Project No. 1251
Contract No. C0028948
March 22, 2016
9. Amendments. Any amendments to this Agreement will be effective only after approval by both
governing bodies and execution of a written amendment document by duly authorized officials of each
body.
10. Effective Dates. This Agreement will be effective upon execution by duly authorized officials of
each governing body and shall continue in effect until all work to be carried out in accordance with this
Agreement has been completed. Absent an amendment, however, in no event will this Agreement
continue in effect after December 31, 2021.
11 Final completion. Final completion of the construction Project must be approved by both parties.
12. Storm Sewer Construction and Maintenance. The City shall be responsible for assisting with
storm sewer inspection including having an inspector on-site during storm sewer installation. Upon final
acceptance of the Project, maintenance of storm sewer systems shall be provided in accordance with the
current County and City Maintenance Agreement. The County will participate in replacement or repair of
storm sewer constructed by this Project in accordance with County policies included in the County's
Transportation Plan as of November 1, 2015.
13. Sidewalks and Trails. Upon final acceptance of the Project, maintenance of sidewalk and trails
shall be provided in accordance with the current County and City Maintenance Agreement. The County
and the City shall be responsible for the costs of trail resurfacing or reconstruction in accordance with
County policies included in the County's current Transportation Plan.
14. Pavement Maintenance. Upon acceptance of the Project, the City shall be responsible for all
pavement maintenance within City right-of-way and the County shall be responsible for all pavement
maintenance within County right-of-way unless necessitated by a failure of a municipal utility system or
installation of new facilities.
15. Subsequent Excavation. After completion of the Project, and after expiration of the warranty
period regarding repair, if excavation within County right-of-way is necessary to repair or install water,
sewer, or other city utilities, the City shall restore the excavated area and road surface to substantially the
condition at the time of disturbance. If the City employs its own contractor for the above described water,
sewer or other utility repair or installation, the City shall hold the County harmless from any and all liability
incurred due to the repair or installation of said water, sewer or other municipal utility including, but not
limited to, the costs of repair as well as liability to third parties injured or damaged as a result of the work.
If the City fails to have the highway properly restored, the County Engineer may have the work done and
the City shall pay for the work within 30 days following receipt of a written claim by the County.
5
County Project No. 26-52; City Project No. 1251
Contract No. C0028948
March 22, 2016
16. Rules and Regulations. The County and the City shall abide by Minnesota Department of
Transportation standard specifications, rules and contract administration procedures, and State statutes
as applicable to carrying out the work contemplated in this Agreement unless amended by the contract
specifications.
17. Indemnification. The County agrees to defend, indemnify, and hold harmless the City against any
and all claims, liability, loss, damage, or expense arising under the provisions of this Agreement and
caused by or resulting from negligent acts or omissions of the County and/or those of County employees
or agents. The City agrees to defend, indemnify, and hold harmless the County against any and all
claims, liability, loss, damage, or expense arising under the provisions of this Agreement and caused by
or resulting from negligent acts or omissions of the City and/or those of City employees or agents. All
parties to this Agreement recognize that liability for any claims arising under this Agreement are subject to
the provisions of the Minnesota Municipal Tort Claims Law; Minnesota Statutes, Chapter 466. In the
event of any claims or actions filed against either party, nothing in this Agreement shall be construed to
allow a claimant to obtain separate judgments or separate liability caps from the individual parties. The
County shall include the City as additional insured in the contract documents.
18. Employees of Parties. Any and all persons engaged in the work to be performed by the County
shall not be considered employees of the City, for any purpose, including Worker's Compensation, and
any and all claims that may or might arise out of said employment context on behalf of said employees
while so engaged, and any and all claims made by any third party as a consequence of any act or
omission on the part of said employees while so engaged on any of the work contemplated herein shall
not be the obligation or responsibility of the City. Any and all persons engaged in the work to be
performed by the City shall not be considered employees of the County for any purpose, including
Worker's Compensation, and any and all claims that may or might arise out of said employment context
on behalf of said employee while so engaged. Any and all claims made by any third party as a
consequence of any act or omissions of the part of the City's employees while so engaged on any of the
work contemplated herein shall not be the obligation or responsibility of the County.
19. Audits. Pursuant to Minnesota Statutes Sec 16 C. 05, Subd. 5, any books, records, documents,
and accounting procedures and practices of the County and the City relevant to the Agreement are
subject to examination by the County or the City and either the Legislative Auditor or the State Auditor as
appropriate. The County and the City agree to maintain these records for a period of six years from the
date of performance of all services covered under this Agreement. Dakota County will be financially
responsible for the cost of the audit.
20. Integration and Continuing Effect. The entire and integrated agreement of the parties contained
in this Agreement shall supersede all prior negotiations, representations or agreements between the
County Project No. 26-52; City Project No. 1251
Contract No. C0028948
March 22, 2016
County and the City regarding the Project; whether written or oral. All agreements for future maintenance
or cost responsibilities shall survive and continue in full force and effect in accordance with the Dakota
County Transportation Plan after completion of the construction provided for in this Agreement.
21. Authorized Representatives. The authorized representatives for the purpose of the administration
of this Agreement are:
Mark Krebsbach (or successor) John Gorder (or successor)
Dakota County Transportation Director/County Engineer City Engineer, City of Eagan
14955 Galaxie Avenue 3830 Pilot Knob Road
Apple Valley, MN. 55124 Eagan, MN 55122
(952) 891-7100 (651) 675-5000
All notices or communications required or permitted by this Agreement shall be either hand delivered or
mailed by certified mail, return receipt requested, to the above addresses. Either party may change its
address by written notice to the other party. Mailed notice shall be deemed complete two business days
after days after the date of mailing.
[SIGNATURE PAGE TO FOLLOW]
N:lHighwaylAgreementsl20l7l26-52 Eagan C0028948.docx
7
IN WITNESS THEREOF, the parties have caused this agreement to be executed by their duly authorized
officials.
RECOMMENDED FOR APPROVAL.
Public Works Director
APPROVED AS TO FORM:
City Attorney
RECOMMENDED FOR APPROVAL:
County Engineer
COUNTY BOARD RESOLUTION:
No: 17- Date: April 4, 2017
KS-
CITY OF EAGAN
By
Mayor
(SEAL)
By
City Clerk
DAKOTA COUNTY
APPROVED AS TO FORM:
Assistant County Attorney / Date
By:
Physical Development Director
Date:
Agenda Information Memo
April 18, 2017 Eagan City Council Meeting
CONSENT AGENDA
J. Inver Grove Heights Water System Interconnection Agreement
Action To Be Considered:
Approve a Water Main Interconnection Agreement with the City of Inver Grove Heights and
authorize the Mayor and City Clerk to execute all related documents.
Facts:
➢ The proposed agreement provides for the controlled interconnection of the water main
systems of both Eagan and Inver Grove Heights, for use by either City in the event of an
emergency, in northeast Eagan or northwest Inver Grove Heights.
➢ The current water supply piping system in the northwest area of Inver Grove Heights
results in a long "dead-end" water main, making it susceptible to loss of adequate water
flow or pressure in an emergency.
➢ Eagan has a looped water system in northeast Eagan, with additional looping being
completed in accordance with the Council approved Water Supply Plan as part of the
Viking Lakes development. While Eagan's system is sufficient in this area of the city, a
connection to the Inver Grove Heights water system will make Eagan even less
susceptible to inadequate water flow or pressure in an emergency.
➢ Inver Grove Heights proposes to construct the desirable water main connection and
control valves, to be used by either city under terms of the agreement, and finance all
associated construction costs.
➢ The agreement is being presented to the City Council for their consideration of
approval. It has been reviewed by Public Works staff and the City Attorney and found to
be in order for favorable consideration.
Attachments (2)
CJ -1 Water Main Interconnection Agreement
CJ -2 Location Map
WATER SYSTEM INTERCONNECTION AGREEMENT
BY AND BETWEEN CITY OF INVER GROVE HEIGHTS AND CITY OF EAGAN
THIS WATER SYSTEM INERCONNECTION AGREEMENT (Agreement) is
made, entered into and effective this 10th day of April, 2017, by and between the City of Inver
Grove Heights, a Minnesota municipal corporation (hereafter referred to as "IGH") and the City
of Eagan, a Minnesota municipal corporation (hereafter referred to as "Eagan"). Subject to the
terms and conditions hereafter stated and based on the representations, warranties, covenants,
agreements and recitals of the parties herein contained, the parties do hereby agree as follows:
ARTICLE 1
DEFINITIONS
1.1 Terms. The following terms, unless elsewhere specifically defined herein, shall
have the following meanings as set forth below.
1.2 IGH. IGH means the City of Inver Grove Heights, a Minnesota municipal
corporation, and its successors and assigns.
1.3 Eagan. Eagan means the City of Eagan, a Minnesota municipal corporation, and
its successors and assigns.
1.4 Interconnection. Interconnection means the connection of the IGH water system
and the Eagan water system within existing utility easements at or near the intersection of
Dakota County State Aid Highway 26 and the IGH / Eagan corporate boundary pursuant to and
in the manner shown on the Interconnection Plan.
1.5 Interconnection Plan. Interconnection Plan means that certain construction plan
showing the interconnection of the Eagan water system and the IGH water system as part of IGH
Improvement Project 2017-02 prepared by Bolton & Menk dated February 27, 2017 on file with
both the Eagan Contact and the IGH Contact.
1.6 Ea_=an Contact. Eagan Contact means the Eagan Water Utility Superintendent or
designees thereof.
1.7 IGH Contact. IGH Contact means the IGH Water Utility Superintendent or
designees thereof.
1.8 Construction Deadline. Construction Deadline means on or before November
15, 2017.
1.9 Connection Components. Connection Components means and includes the
following:
a.) The vault and appurtenances where the physical connection of the water
systems will occur.
b.) The valve on the Eagan side of the vault that controls water now through
the Interconnection.
c.) A fire hydrant on the Eagan side of the vault.
d.) The valve on the IGH side of the vault that controls water flow through the
Interconnection.
e.) A fire hydrant on the IGH side of the vault.
£) The piping from the Eagan valve to the IGH valve.
1.10 Emer,_,ene _Event. Emergency Event means and includes any of the following:
a.) There has been a break or disruption of a water main.
b.) Due to regulatory requirements, the water system has to be shutdown.
c.) Due to necessary or advisory testing of the water system, the water system
has to be shutdown.
d.) Construction activity affecting the water system requires a shutdown of
the water system.
e.) The city has issued a declaration of emergency pursuant to State law or
local ordinance.
f.) Scheduled or unscheduled substantial repair or maintenance of the water
system requires shut down of the water system.
g.) The water treatment plant is shutdown.
-2-
h.) In the reasonable judgment of the Director of Public Works from the city
receiving the water, the Director or designee determines that the city water
system has to be shutdown.
1.11 IGH Water Rate. IGH Water Rate means the water billing rate charged by IGH
for industrial users with large consumption, as amended and determined by IGH from time to
time.
1.12 Ea, -,an Water Rate. Eagan Water Rate means the water billing rate charged by
Eagan for industrial users with large consumption, as amended and determined by Eagan from
time to time.
ARTICLE 2
RECITALS
Recital No. 1. Eagan is a municipal corporation. IGH is a municipal corporation.
Eagan owns and operates a municipal water system within its corporate boundaries. IGH owns
and operates a municipal water system within its corporate boundaries.
Recital No. 2. The water systems in IGH and Eagan are compatible with each other in
terms of water quality, general design and water pressure.
Recital No. 3. Eagan and IGH desire to create an Interconnection between the two
systems to deal with Emergency Events so that a continuous supply of water will be provided
within the city where the Emergency Event occurred for the duration of the Emergency Event.
Recital No. 4. The Interconnection will only become functional and operational when
an Emergency Event occurs. Only when the Interconnection becomes functional and operational
will water flow from city to city.
Recital No. 5. In general, the Interconnection involves the physical connection of a
twelve inch diameter water main in Eagan with a twelve inch diameter water main in IGH at a
location within public utility easements at or near the intersection of Dakota County State Aid
Highway 26 and the corporate border of Eagan and IGH.
Recital No. 6. The Interconnection contains the Connection Components as shown on
the Interconnection Plan.
Recital No. 7. The Interconnection serves and promotes the health, safety and welfare
of both Eagan and IGH.
ARTICLE 3
AGREEMENTS
-3-
3.1. Approval of Interconnection. Eagan approves the Interconnection and the
Interconnection Plan. IGH approves the Interconnection and the Interconnection Plan.
3.2. Construction of Interconnection. At its expense, IGH shall construct the
Interconnection in accord with the Interconnection Plan. Such construction shall be completed
no later than the Construction Deadline.
3.3. Maintenance and Repair. IGH, at its expense, shall maintain and repair the
Connection Components except for the hydrant in Eagan and the valve in Eagan. Maintenance
by IGH shall conform to best practices in the industry and shall meet the IGH standards for its
water system as amended from time to time by IGH.
In all events, IGH is not responsible for any maintenance or repair of the Eagan water
system lying on the Eagan side of the Eagan valve.
Eagan, at its expense, shall maintain and repair the hydrant in Eagan and the valve in
Eagan. Maintenance by Eagan shall conform to best practices in the industry and shall meet the
Eagan standards for its water system as amended from time to time by Eagan.
In all events, Eagan is not responsible for any maintenance or repair of the IGH water
system lying on the IGH side of the IGH valve.
3.4. Procedure to Make Interconnection 01}erational and Functional. Unless an
Emergency Event has occurred, the Interconnection will not be operational and functional; in
such a situation, water will not flow between Eagan and IGH and the Eagan valve will be closed
and the IGH valve will be closed.
If an Emergency Event occurs within a city as determined by the Contact person for that
city, then the Contact person for that city may open the IGH valve and the Eagan valve and make
the Interconnection operational and functional. The Contact person for the city receiving the
water shall notify the Contact person of the other city as soon as practical but no later than
twelve hours after the Interconnection has become operational and functional.
If the Contact person for the city receiving the water estimates that the Interconnection
will be operational and functional for more than two weeks, then the city receiving the water will
as soon as practical install a water meter at the Interconnection to meter the water flowing into
the receiving city after the two week period. The city receiving the water shall bear the cost of
obtaining the water meter and installing the water meter. In all events, if the Interconnection is
operational and functional for more than two weeks, the city receiving the water will, at its
expense, install the water meter.
If the Interconnection is operational and functional for two or fewer weeks, the city
receiving the water is not obligated to pay the city providing the water. If the Interconnection is
operational and functional for more than two weeks, the city receiving the water is obligated to
pay the city providing the water per the quantities shown by the meter. In such instance, Eagan
-4-
shall charge and IGH shall pay the Eagan Water Rate and IGH shall charge and Eagan shall pay
the IGH Water Rate. Payment shall be made within thirty days after invoicing is made.
The Interconnection shall remain operational and functional only during the duration of
the Emergency Event. Once the Emergency Event has ceased, the Contact person for the
receiving city shall close the valves in Eagan and IGH and shall notify the Contact person in the
other city.
The city that experiences the Emergency Event shall make good faith reasonable efforts
to lessen, minimize and cure the Emergency Event.
3.5. Form of Notice between Contact Persons. The type and manner of notice from
the Eagan Contact to the IGH Contact and from the IGH Contact to the Eagan Contact as stated
in Section 3.4 may be by personal delivery of a writing, or by telephone or by e-mail or by text
message or by regular mail.
3.6 Indemnification of Eagan. IGH and its successors and assigns do hereby agree
to indemnify, defend and hold Eagan, and the Eagan Council, agents, employees, attorneys and
representatives harmless against and in respect of any and all claims, demands, actions, suits,
proceedings, losses, costs, expenses, obligations, liabilities, damages, recoveries and
deficiencies, including interest, penalties and reasonable attorneys' fees that Eagan incurs or
suffers, by way of future third party claims against Eagan, which arise out of, result from or
relate to the delivery of Eagan water to IGH through the Interconnection and the quality of such
water and the use of such water by IGH in the IGH water system.
3.7 Indemnification of IGH. Eagan and its successors and assigns do hereby agree
to indemnify, defend and hold IGH, and the IGH Council, agents, employees, attorneys and
representatives harmless against and in respect of any and all claims, demands, actions, suits,
proceedings, losses, costs, expenses, obligations, liabilities, damages, recoveries and
deficiencies, including interest, penalties and reasonable attorneys' fees that IGH incurs or
suffers, by way of future third party claims against IGH, which arise out of, result from or relate
to the delivery of IGH water to Eagan through the Interconnection and the quality of such water
and the use of such water by Eagan in the Eagan water system.
3.8 Release of Eaizan. IGH does hereby waive, release, and discharge and covenant
not to sue with regard to all future claims of IGH against Eagan which result from or relate to the
quality of the water delivered by Eagan to IGH through the Interconnection.
3.9 Release of IGH. Eagan does hereby waive, release, and discharge and covenant
not to sue with regard to all future claims of Eagan against IGH which result from or relate to the
quality of the water delivered by IGH to Eagan through the Interconnection.
3.10 Termination of Agreement. This Agreement may be terminated upon the
occurrence of any of the following events:
a. The parties may mutually determine to terminate the Agreement; or
-5-
b. Any party, upon 24 months advance written notice to the other party, may terminate the
Agreement; the termination date shall be at least 24 months after the date of effective
notice and the termination date shall be specified in the notice.
For purposes of this Section 3. 10, notice means notices given by one party to the other if in writing
and if and when delivered or tendered either in person or by depositing it in the United States mail
in a sealed envelope, by certified mail, return receipt requested, with postage and postal charges
prepaid, addressed as follows:
If to IGH: City of Inver Grove Heights
Attention: City Public Works Director
8150 Barbara Avenue
Inver Grove Heights, MN 55077
If to Eagan: City of Eagan
Attention: City Public Works Director
3830 Pilot Knob Road
Eagan, MN 55122
or to such other address as the party addressed shall have previously designated by notice given in
accordance with this Section. Notices shall be deemed to have been duly given on the date of
service if served personally on the party to whom notice is to be given, or on the third day after
mailing if mailed as provided above, provided, that a notice not given as above shall, if it is in
writing, be deemed given if and when actually received by a party.
ARTICLE 4
MISCELLANEOUS
4.1 No Third Parte Recourse. Third parties shall have no recourse against Eagan or
IGH under this Agreement.
4.2 Binding Agreement. The parties mutually recognize and agree that all terms and
conditions of this Agreement shall forever be binding upon the parties and their successors and
assigns.
4.3 Amendment and Waiver. The parties hereto may by mutual written agreement
amend this Agreement in any respect. Any party hereto may extend the time for the performance
of any of the obligations of another, waive any inaccuracies in representations by another
contained in this Agreement or in any document delivered pursuant hereto which inaccuracies
would otherwise constitute a breach of this Agreement, waive compliance by another with any of
the covenants contained in this Agreement and performance of any obligations by the other or
waive the fulfillment of any condition that is precedent to the performance by the party so
waiving of any of its obligations under this Agreement. Any agreement on the part of any party
for any such amendment, extension or waiver must be in writing. No waiver of any of the
provisions of this Agreement shall be deemed, or shall constitute, a waiver of any other
provisions, whether or not similar, nor shall any waiver constitute a continuing waiver.
no
4.4 Governing Law. This Agreement shall be governed by and construed in accord
with the laws of the State of Minnesota.
4.5 Counterparts. This Agreement may be executed in any number of counterparts,
each of which shall be deemed an original, but all of which shall constitute one and the same
instrument.
4.6 Headings. The subject headings of the sections in this Agreement are included
for purposes of convenience only, and shall not affect the construction of interpretation of any of
its provisions.
[the remainder of this page was intentionally left blank]
-7-
IN WITNESS WHEREOF, City of Eagan and City of Inver Grove Heights have
executed this Agreement on the day and year first stated above.
CITY OF INVER GROVE HEIGHTS
George Tourville, Mayor
ATTEST:
Michelle Tesser, City Clerk
(CITY SEAL)
STATE OF MINNESOTA
W
COUNTY OF DAKOTA
On this 10t' day of April, 2017, before me a Notary Public within and for said County,
personally appeared George Tourville and Michelle Tesser, to me personally known, who being
each by me duly sworn, each did say that they are respectively the Mayor and City Clerk of the
City of Inver Grove Heights, the municipality named in the foregoing instrument, and that the
seal affixed to said instrument was signed and sealed on behalf of said municipality by authority
of its City Council and said Mayor and City Clerk acknowledged said instrument to be the free
act and deed of said municipality.
Notary Public
CITY OF EAGAN
By:
Mike Maguire
Its: Mayor
r:7w1IMI
Christina M. Scipioni
City Clerk
(CITY SEAL)
STATE OF MINNESOTA )
ss.
COUNTY OF DAKOTA
On this day of April, 2017, before me a Notary Public within and for said County,
personally appeared Mike Maguire and Christina M. Scipioni to me personally known, who being
each by me duly sworn, each did say that they are respectively the Mayor and City Clerk of the City
of Eagan, the municipality named in the foregoing instrument, and that the seal affixed to said
instrument was signed and sealed on behalf of said municipality by authority of its City Council and
said City Clerk acknowledged said instrument to be the free act and deed of said municipality.
Notary Public
I
� Ry{7RTF�WES?
Lei
LW
?' t
i
_x ,er Mair 1berconne,
rra Y FAPO LORD oo*+a � iet -5
RITA CT C� z
CL
t ° ' CHAPEL LN C
a
{, `' Z' �T
N,'+%
�
cj r �T
yj w �' sur u.
ALSORINNDR q J �4, 49 3c
LQ
-_
{wry ur``
k
77 TN S TWY
\
4Af L4JDBa7R�?It
a P-
II C7 F'• '.
i
10
YANKEE DOODLE RD
Agenda Information Memo
April 18, 2017, Eagan City Council Meeting
CONSENT AGENDA
K. Minnesota Valley In -Fisherman Club Donation — "School of Fish" Class
Action to Be Considered:
Approve a resolution to accept a $200.00 cash donation from Minnesota Valley In -Fisherman
Club in support of the 2017 "School of Fish" class and direct the Mayor and City Clerk to
execute all related documents.
Facts:
➢ The MN Valley In -Fisherman Club (MVIFC) was founded in 1976 as an informal, nonprofit
fishing club. MVIFC's primary purpose is to improve fishing technique and keep on top of
the newest and best fishing methods. Its members care about teaching fishing skills and
values to the next generations.
➢ For about 20 years, groups of motivated MVIFC members have provided innumerable
volunteer hours of invaluable support to our free -to -the -public summer and winter fishing
events, which offer families and youth opportunities to learn and practice basic fishing
skills. Members work directly with staff and participants to help make events fun, helpful,
efficient, and safe.
➢ As was done in 2015 and 2016, Eagan's Water Resources program sponsored a "School of
Fish" event on March 25, 2017. This 2.5 -hour indoor class was taught by Mike Frisch, a pro
angler and retired teacher. Twenty-six (26) participants learned about finding various
species, lures and how to use them, knot tying, and slip -bobber rigging. Each received a
new rod and reel, box of tackle, $10 gift card, 32 -page workbook, snack pack, and kids'
fishing book (total $60 value), and an Eagan Fishing Guide.
➢ The MVIFC is donating $200 to offset the registration cost of the 2017 class, which was
$50/participant. The City paid $35/participant, and each participant paid $15 to register.
The donation effectively lowers the City's cost to about $27.31/participant. Funding for the
"School of Fish" class is provided through the Water Resources Program budget, as
approved by the City Council. The revenue for said budget is the stormwater utility fees
paid by Eagan residents and businesses.
Attachments (1)
CK -1 Resolution
RESOLUTION NO.
CITY OF EAGAN
MINNESOTA VALLEY IN -FISHERMAN CLUB DONATION
2017 "SCHOOL OF FISH" CLASS
WHEREAS, the City Council of the City of Eagan encourages public donations to help
defray the costs to the general public for providing public services in the City of Eagan; and
WHEREAS, Minnesota Valley In -Fisherman Club has presented the City of Eagan with a
donation in the amount of $200.00 to offset registration costs of the 2017 "School of Fish"
class; and
WHEREAS, Minnesota Statutes 465.03 requires that all gifts and donations of real or
personal property be accepted only with the adoption of a resolution approved by two-thirds
of the members of the City Council;
NOW, THEREFORE, BE IT RESOLVED by the City of Eagan, Dakota County, Minnesota,
that the $200.00 donation from the Minnesota Valley In -Fisherman Club is hereby accepted
for use by the City with the intent to offset registration costs of the 2017 "School of Fish"
class; and
BE IT FURTHER RESOLVED, that the City of Eagan sincerely thanks the Minnesota
Valley In -Fisherman Club for their gracious and generous donation.
CITY OF
EAGAN CITY
COUNCIL
By:
Its Mayor
Attest:
Its City Clerk
Motion by:
Seconded by:
Those in
Favor:
Those
Against:
Date: April 18, 2017
Agenda Information Memo
April 18, 2017 Eagan City Council Meeting
CONSENT AGENDA
L. Contract 17-08, Vikings Parkway
Streetlights
Action To Be Considered:
Reject all bids for Contract 17-08, Vikings Parkway - Streetlight Materials Purchase, and
authorize the rebidding of the contract.
Facts:
➢ Contract 17-08 provides for the purchase of streetlight materials for Vikings Parkway
within the Viking Lakes development, in conjunction with City Contract 16-22 (Vikings
Parkway Street & Utility Improvements), awarded to Frattalone Companies, Inc. on
March 7, 2017.
➢ On June 7, 2016, the City Council received a petition from MV Eagan Ventures
requesting the public improvements, a collector roadway, trails, roundabouts, storm
sewer and trunk water main along Northwest Parkway between Lone Oak Parkway and
Ames Crossing Road.
➢ On August 16, 2016, the City Council accepted the feasibility report for Project 1225,
and authorized the preparation of detailed plans and specifications for the public
improvements for the 2017 construction season.
➢ On January 17, 2017, the Council approved the plans and authorized the advertisement
for solicitation of competitive bids for Contract 17-08.
➢ At 10:30 a.m. on March 30, 2017, formal bids were received for this project. Only one
formal and complete bid was submitted.
➢ The bid was reviewed for compliance with the bid specifications and accuracy on unit
price extensions and summations. The base bid was found to be in excess of 14% more
than the Engineer's estimate. It appears that the bid opening was not adequately
advertised and may have limited the number of bidders, as well as impacted the cost of
the submitted bid.
➢ The schedule required for the manufacture and delivery of the street lights to the
project site would still accommodate the street and utility improvements schedule even
with the rebidding of the contract.
➢ Public Works Department staff and the engineering consultant have reviewed the
factors that appear to have contributed to the bid results, as well as the consequences
of rebidding, and find the rebidding of the contract is in order for favorable Council
action
Attachments (1)
CL -1 Bid Summary
BID SUMMARY
CITY CONTRACT NO 17-08
CITY PROJECT 1225
Vikings Parkway
Streetlight Materials Purchase
Bid Date/ Time: 10:30 a.m., Thursday, March 30, 2017
Contractors
Total Base Bid
1. Liteco, Inc. $ Incomplete Bid
2. Neo Electrical Solutions $ 322,540.50
Cost $322,541 $276,000 14.41
Agenda Information Memo
April 18, 2017, Eagan City Council Meeting
CONSENT AGENDA
M. Approve a resolution to accept a fabric donation from Debra Haupt for Eagan Forward
Action To Be Considered:
To approve a resolution to accept a fabric donation from Debra Haupt of Haupt Antiek Market for
Eagan Forward.
Facts:
➢ Debra Huapt donated eight yards of fabric (valued at $100) to the City to be used by
Eagan Forward Team 3 (Becoming a Welcoming and Inclusive Community).
➢ The fabric will be used to sew Welcome to Eagan totes, which are distributed to new
Eagan residents. The welcome totes contain information about Eagan and a hand
written "welcome to Eagan" card.
Attachments: (1)
CM -1 Resolution
CITY OF EAGAN
RESOLUTION
TO ACCEPT A FABRIC DONATION FOR EAGAN FORWARD
WHEREAS, THE City of Eagan initiated Eagan Forward, a 20 -year visioning effort; and
WHEREAS, an Eagan Forward study action team is sewing Welcome to Eagan Totes; and,
WHEREA S, Debra Haupt of Haupt Antiek Market has donated 8 yards of fabric, valued at $100,
towards the Welcome Tote project;
NOW, THEREFORE, BE IT RESOLVED that the Eagan City Council does hereby accept the
following donation: Debra Haupt (8 yards of fabric) to support Eagan Forward.
Motion made by:
Seconded by:
Those in favor:
Those against:
Dated
CITY OF EAGAN
CITY COUNCIL
By:
Mayor
Attest:
City Clerk
CERTIFICATION
I, Christina M. Scipioni, City Clerk for the City of Eagan, Dakota County, Minnesota, do hereby
certify that the foregoing resolution was duly passed and adopted by the City Council of the City of
Eagan, Dakota County, Minnesota, in a regular meeting thereof assembled this 18th day of April, 2017.
City Clerk
Agenda Information Memo
April 18, 2017 Eagan City Council Meeting
CONSENT AGENDA
N. Award contract 17-10 to Comlink Midwest LLC for the extension of fiber into
Northeast Eagan redevelopment area.
Action To Be Considered:
To award Contract 17-10 to Comlink Midwest LLC for the extension of fiber into
Northeast Eagan redevelopment area.
Facts:
➢ Staff had requested to authorize the issuance of an RFP for various fiber
construction projects on the March 7th, 2017 meeting. The City received sealed
bids on March 211t and it was determined that Comlink Midwest LLC was the low
bidder.
➢ In an effort to reduce costs, four fiber projects were combined into one request
for proposal. These projects include extending fiber along Lone Oak Parkway to
Vikings Parkway (Base Bid), extending fiber from Wescott Road/Lexington to the
Eagan Art House (Alternate Bid 1), extending fiber from Pilot Knob Road and
Central Parkway to Well #22 (Alternate Bid 2) and some miscellaneous splices
needed at splice point #1 (Alternate Bid 3).
➢ The bid totals for all four projects were as follows: Base Bid - $61,771.24,
Alternate Bid 1- $55,719.00, Alternate Bid 2 - $18,815.00 and Alternate Bid 3-
$1,400
➢ The City will accept the base bid as well as Alternates Bids 1 and 3 for a total
accepted cost of $118,890.24.
➢ Alternate Bid 2 will be rejected due to timing issues with when Well #22 needed
to be completed.
➢ The Park and Recreation department had budgeted CIP funds to expand fiberto
the Eagan Art House in 2017. AccessEagan had budgeted funds to extend fiber
into Northeast Eagan in 2017 to service the redevelopmentarea.
➢ While a contract has not yet been executed with a service provider to service the
Vikings, we have received verbal and written confirmation that the Vikings would
like to use AE fiber for a redundant connection.
Attachments: (0)
To view the proposed contract please contact the City Administrator's office
Agenda Information Memo
April 18, 2017, Eagan City Council Meeting
CONSENT AGENDA
O. Final Plat (Cloverleaf Cold Storage) — CCS Realty Co.
Actions To Be Considered:
To approve a Final Plat (Cloverleaf Cold Storage) for property located south at 2864
Eagandale Boulevard.
Required Vote For Approval:
➢ Majority of Councilmembers present
Facts:
➢ Cloverleaf Cold Storage received approval of a Variance on March 2, 2016 to
permit an addition to the existing building.
➢ While one tax parcel, the property consists of multiple previously platted lots.
The underlying lot lines and platted drainage and utility easements remained
throughout the property, resulting in conflicts between building placement
across lot lines.
➢ One of the conditions of Variance approval required replatting of the property as
a single parcel to eliminate such conflicts.
➢ There were no existing easements that needed to be vacated, and all necessary
drainage and utility easements are retained or dedicated with the new plat.
➢ Dakota County Surveyor has okayed the plat for mylars. The signed mylars have
been received and is in order for execution at the City Council meeting on April
18, 2017.
Issues: None
Attachments: (2)
CO -1 Location Map
CO -2 Final Plat
d
co
L.
o
N m
V
U c
0) m
m M
L W M
Q co m
U C4:
CL
CLL
E ii o
Z
v m Z
d
C cr N
L 0 :C
CL wU
�o
F N
rz
0
m m
C,
U U = Y m
w
a s m' a v O
O
AnERICA.. RED CROSS ADD.I
----------- i
EAGANDALE CENTER 1INDUSTRIAL. RK N PA - Nti
I o. ! �---�--�
L_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ — n
AN.'Al, E BOULEVARD p�
noaoau•� a o�+�gM
y;p
--------------------
al I
I `
� u
I L >3
Pl
I
/
•• o
ar ex$nCn b
m} a is ,t ``
rt"s
4� f
�f
e`
a
S
w
E
R
sof?
$
Mifi�
�
8
33Ea
aKRA
is
€a3
Ig
nix
Agenda Information Memo
April 18, 2017, Eagan City Council Meeting
CONSENT AGENDA
P. Adopt a Resolution Approving a Second Amended and Restated Development Agreement
with MG Eagan, LLC.
Action To Be Considered:
To adopt a resolution approving a Second Amended and Restated Development Agreement
with MG Eagan, LLC
Facts:
➢ The Northeast Eagan Redevelopment District was first certified in July 2002 as TIF
District 2-4 which incorporated a portion of what is now the Interstate
Partners/Grand Oak development, property west of Highway 55, and property north
of Blue Gentian Road.
➢ McGough Development owns property north of Blue Gentian Road which was
originally occupied by older, dilapidated single-family homes without municipal
sewer and water. McGough voluntarily acquired all but four parcels to complete
land assembly for a proposed office development.
➢ McGough requested EDA assistance to acquire the remaining four parcels through
eminent domain. McGough has provided complete reimbursement to the EDA for
its costs of approximately $3.2 million.
➢ On June 18, 2008, McGough Development, the City and the EDA entered into an
Amended and Restated Development Agreement whereby the EDA agreed to
provide a pay-as-you-go TIF Note if the developer met certain minimum
improvements. Phase I was proposed to be a 75,000 square foot office building and
Phase II was proposed as an additional 130,000 square foot building. The EDA would
issue a TIF Note for $3.8 million upon completion of both phases.
➢ As part of a restructuring of the Northeast Eagan TIF District 2-4, the City created a
new TIF District (TIF 2-5) in 2009, which now includes only the McGough property
and property on the west side of Highway 55. This District was certified on April 28,
2009.
➢ The economic downturn negatively impacted McGough's ability to market the site
for an office user. Although the property has excellent exposure from Highway 494,
the access is somewhat circuitous, and topographical constraints will result in
significant grading costs for any development.
➢ McGough has recently approached the City with a potential 150,000 square foot
office development with surface parking. A second phase of 60,000 square feet is
possible.
➢ Under current TIF statutes, the City/EDA must issue the TIF Note by April 28, 2017.
Although McGough has incurred qualified costs that exceed the proposed TIF Note,
all of the deadlines under the existing Development Agreement have passed and the
City/EDA will need to amend the Agreement.
➢ The Finance Committee reviewed the proposal at its March 22, 2017 meeting,
provided direction on terms of the Agreement, and recommended approval by the
City Council.
➢ Key terms of the Second Amended and Restated Development Agreement include:
o No increment is paid to the developer until Minimum Improvements of at
least 100,000 square feet of office has been commenced;
o Construction of Minimum Improvements must be commenced no later than
April 1, 2020;
o The outstanding principal of the TIF Note shall be increased if additional
office or hotel development commences prior to April 1, 2025;
o The TIF Note will be prorated based on the actual size of development in
comparison to the 2008 Phase I and II proposal;
o The developer will receive 75% of the increment, and the City will retain 25%
for administration and pooling;
o The TIF Note will mature and no increment will be paid after February 1,
2036.
Attachments: (3)
CP -1 Location Map
CP -2 Resolution Approving Second Amended and Restated Development Agreement with MG
Eagan, LLC for Tax Increment Financing District No. 2-5
CP -3 Second Amended and Restated Development Agreement
O
U)
N
O
I
Mn
(I
U 2
N
aI
of
LO N0
N 3
Qy
U NI U
O iN
w
LL
a r- a
m a y
ow
0
0
1q
O
0
LO
BLUE GE
4
0
w
Z
Z
LU
U'
w
ro
dr
N
Q
I 115-5 1 V -0
D ~
C7 i
C lE
CL
•
bba •� • �]K
NJ .
Fu
S
i
RESOLUTION NO.
APPROVING SECOND AMENDED AND
RESTATED DEVELOPMENT AGREEMENT WITH MG EAGAN, LLC
FOR TAX INCREMENT
FINANCING DISTIRCT NO. 2-5
WHEREAS, the Eagan Economic Development Authority (the "EDA") has created
and established a Tax Increment Financing District referred to as Tax Increment Financing
District No. 2-5 (the "TIF District") in connection with that part of the Development Program
for Northeast Eagan Development District No. 2 which has been established as a
Redevelopment Project pursuant to Minnesota Statutes, Section 469.028 (the
"Redevelopment Project Area") and pursuant to the authority granted by Minnesota Statutes,
Sections 469.090 to 469.1081 and 469.001 to 469.047 and Sections 469.174 through 469.179
(collectively, the "Acts"); and
WHEREAS, pursuant to the Acts, the EDA has adopted and the City has approved a
Redevelopment Plan (the "Redevelopment Plan") and a tax increment financing plan (the
"TIF Plan") to finance a portion of the public redevelopment costs of the Redevelopment
Project Area; and
WHEREAS, in order to achieve the objectives of the Redevelopment Plan and the
TIF Plan, the EDA has determined to provide substantial aid and assistance through the
financing of certain land acquisition, demolition, soil correction and public improvement
costs in the Redevelopment Project Area; and
WHEREAS, the EDA, the City of Eagan and MG Eagan, LLC (the "Developer")
entered into an Amended and Restated Development Agreement (the "Prior Agreement")
under which the Developer proposed to develop certain office facilities within the
Redevelopment Project Area and the TIF District which the EDA determined would promote
and carry out the Redevelopment Plan and TIF Plan; and
WHEREAS, the Developer has paid Developer Acquisition Costs and Demolition and
Soil Correction Costs under the Prior Agreement in an amount not less than $6,000,000; and
WHEREAS, although the Developer did not commence the Improvements within the
time frame established by the Prior Agreement, the EDA wishes to continue to encourage
development of the Property and remains willing to reimburse the Developer for a portion of
the Developer Acquisition Costs and Demolition and Soil Correction Costs paid by the
Developer; and
WHEREAS, there has been submitted to this Board a Second Amended and Restated
Development Agreement (the "Development Agreement") to amend and restate the Prior
Agreement; and
WHEREAS, by reason of the replatting of the Property into a single parcel, the
Repurchase Agreement attached to the Prior Agreement is eliminated.
4852-5513-1206.1
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Eagan as follows:
1. The Development Agreement and the Tax Increment Note attached thereto are hereby
approved and the Development Agreement shall be executed and delivered by the Mayor and
City Clerk.
2. As permitted by the TIF Plan and the Acts, the EDA shall apply 25% of the tax increment
form the TIF District for administrative costs and payment or reimbursement of authorized
expenditures for Cedar Grove Development District, and if the Developer satisfies the
conditions of the Development Agreement, the balance shall be applied to payment of the
Tax Increment Note.
Motion by:
Second by:
Those in Favor:
Those Against:_ _
Date:
Ln
Mike Maguire, Its Mayor
Attest:
4852-5513-1206.1
Christina M. Scipioni, Its City Clerk
SECOND AMENDED AND RESTATED
DEVELOPMENT AGREEMENT
Dated April 18, 2017
Between
EAGAN ECONOMIC DEVELOPMENT AUTHORITY
CITY OF EAGAN
and
MG EAGAN, LLC
This Instrument Drafted by-
Ktuak Rack LLP
3400 RBC Plaza
60 South Sixth Street
Minneapolis, Minnesota 55402
Telephone: (612) 334-5000
4850-1024-3317.4
SECOND
AMENDED AND RESTATED
DEVELOPMENT AGREEMENT
THIS AGREEMENT, made and entered into as of this 18' day of April, 2017, by and
between the EAGAN ECONOMIC DEVELOPMENT AUTHORITY, a Minnesota municipal
corporation (the "EDA"), the CITY OF EAGAN, a Minnesota municipal corporation (the
"City"), and MG EAGAN, LLC, a Minnesota limited liability company (the "Developer")
amends and restates the Amended and Restated Development Agreement dated June 18, 2008
(the "Prior Agreement"), between the EDA, the City and the Developer, as follows:
WITNESSETH:
WHEREAS, the EDA has created and established a Tax Increment Financing District
referred to as Tax Increment Financing District No. 2-5 (the "TIF District") in connection with
that part of the Development Program for Northeast Eagan Development District No. 2 which
has been established as a Redevelopment Project pursuant to Minnesota Statutes, Section
469.028 (the "Redevelopment Project Area") and pursuant to the authority granted by
Minnesota Statutes, Sections 469.090 to 469.1081 and 469.001 to 469.047 and Sections
469.174 through 469.179 (collectively, the "Acts"); and
WHEREAS, the area of the TIF District was formerly a part of Tax Increment
Financing District No. 2-4 (the "Former TIF District"), which has been decertified in part; and
WHEREAS, pursuant to the Acts, the EDA has adopted and the City has approved a
Redevelopment Plan (the "Redevelopment Plan") and a tax increment financing plan (the "TIF
Plan") to finance a portion of the public redevelopment costs of the Redevelopment Project
Area; and
WHEREAS, in order to achieve the objectives of the Redevelopment Plan and the TIF
Plan, the EDA has determined to provide substantial aid and assistance through the financing
of certain land acquisition, demolition, soil correction and public improvement costs in the
Redevelopment Project Area; and
WHEREAS, the Developer proposes to develop certain office or commercial facilities
within the Redevelopment Project Area and the TIF District which the EDA has determined
will promote and carry out the Redevelopment Plan and TIF Plan; and
WHEREAS, the Developer has paid Developer Acquisition Costs and Demolition and
Soil Correction Costs under the Prior Agreement in an amount not less than $6,000,000; and
WHEREAS, although the Developer has not commenced the Improvements within the
time frame established by the Prior Agreement, the EDA wishes to encourage development of
Property and remains willing to reimburse the Developer for a portion of the Developer
Acquisition Costs and Demolition and Soil Correction Costs paid by the Developer; and
2
4850-1029-3317.4
WHEREAS, this Agreement has been approved by the governing bodies of the EDA and
the City;
NOW, THEREFORE, in consideration of the mutual covenants and obligations of the
EDA, the City and the Developer, the parties hereby represent, covenant and agree, as follows:
ARTICLE I.
DEFINITIONS, EXHIBITS, RULES OF INTERPRETATION
Section 1.1 Definitions. In this Agreement, the following terms have the following
respective meanings unless the context hereof clearly requires otherwise:
U Certificate of Completion. The certificate of completion to be executed and
delivered upon completion of the Minimum Improvements pursuant to Section 3.4, in the
form of Exhibit B hereto.
Mb C1ty. The City of Eagan, Minnesota.
(c) Demolition and Soil Correction Costs. The costs of the City, the EDA and
Developer of demolition of existing structures on the Property and soil correction
associated with the Improvements.
M Developer. MG Eagan, LLC, a Minnesota limited liability company, its
successors and assigns.
(e) Developer Acquisition Costs. The actual costs to the Developer of
acquiring the Property, together with relocation costs and interest paid by the Developer
on financing incurred to purchase such property.
(f) Development. The Property and the Improvements to be constructed
thereon according to the Development Plans approved by the EDA and the City.
W Development Plans. Collectively, the preliminary plans, drawings and
related documents furnished to the City, relating to the Property, as the same may be
amended or supplemented from time to time by the Developer and approved by the EDA
and the City, which establish certain design and construction standards for the
Improvements.
h1 EDA. The Economic Development Authority of the City of Eagan,
Minnesota.
Qi) Improvements. The Minimum Improvements and any additional office or
hotel improvements which may be constructed on the Property in accordance with the
Development Plans.
4830-t029-3317.4
Minimum improvements. The improvements to be constructed on the
Property, which shall consist of an office building of at least 100,000 gross square feet and
surface parking, as specified in the Development Plans, but excluding any and all personal
property.
fk Mortga eland Holder. The term "mortgage" shall include the mortgage or
mortgages referenced in Article IV of this Agreement and any other instrument creating
an encumbrance or lien upon the Development or any part thereof as security for a loan.
The term "holder" in reference to a mortgage includes any insurer or guarantor (other
than the Developer) of any obligation or condition secured by such mortgage or deed of
trust.
M1 Property. The real property which is included within the TIF District and which
is legally described in Exhibit A attached hereto.
LmJ Redevelopment Plan. The Redevelopment Plan for the Redevelopment
Project Area, as amended from time to time.
no Tax Increment Financing District (TIF District). Tax Increment Financing
District No. 2-5 created by the EDA pursuant to Minnesota Statutes Sections 469.174
through 469.179 and described in the TIF Plan adopted therefor.
Loi Tax Increment Financing Plan (!IF Plan). The plan for development of
the TIF District adopted by the EDA pursuant to Minnesota Statutes Sections 469.174
through 469.179 and approved by a resolution of the City Council adopted June 3, 2008.
W Tax Increment Note ("TIF Note"). The Tax Increment Revenue Note to be
issued by the EDA to reimburse, with interest, the Developer Acquisition Costs and
Demolition and Soil Correction Costs paid by the Developer prior to the date hereof, in
substantially the form attached as Exhibit C.
W Other Terms. Terms defined in other sections of this Agreement have
the meanings given them
u Unavoidable Delays. Delays which are the direct result of strikes, fire or
other casualty, war, material shortage, weather, causes beyond the constructing party's
control, or acts of God, or acts of any federal, state or local government unit, except
those acts anticipated or contemplated under this Agreement.
Section 1.2 Exhibits. The following Exhibits are attached to and by reference made a
part of this Agreement:
A. Legal Description of Development Property
B. Certificate of Completion.
C. Form of Tax Increment Note.
Section 1.3 Rules of Inter��retation.
4
4850-1029-3317.4
(a) This Agreement shall be interpreted in accordance with and governed by the laws
of the State of Minnesota.
(b) The words "herein" and "hereof' and words of similar import, without reference
to any particular section or subdivision, refer to this Agreement as a whole rather than any
particular section or subdivision hereof.
(c) References herein to any particular section or subdivision hereof are to the section
or subdivision of this Agreement as originally executed.
(d) Any titles of the several parts, articles and sections of this Agreement are inserted
for convenience and reference only and shall be disregarded in construing or interpreting any of
its provisions.
ARTICLE II.
REPRESENTATIONS AND COVENANTS
Section 2.1 By the Developer. The Developer makes the following
acknowledgements, representations and covenants:
(a) The Developer has the legal authority and power to enter into this
Agreement.
(b) The Developer has acquired the Property and has the necessary financial
resources for construction of the Minimum Improvements.
(c) The Developer will, to the extent required by this Agreement, construct or
cause the construction of the Minimum Improvements in accordance with the terms of
this Agreement, the TIF Plan and all local, state and federal laws and regulations, and
will construct or cause the construction of or pay the costs of construction of any site
improvements, utilities, parking facilities, or landscaping improvements which are
necessary in connection with the construction and operation of the Minimum
Improvements.
(d) At such time or times as may be required by law, the Developer will
have complied with all local, state and federal environmental laws and regulations,
will have obtained any and all necessary environmental reviews, licenses or
clearances under, and will be in compliance with the requirements of the National
Environmental Policy Act of 1969, the Minnesota Environmental Policy Act, and the
Critical Area Act of 1973.
(e) The Developer will obtain, in a timely manner, all required permits,
licenses and approvals, and will meet, in a timely manner, all requirements of all local,
state and federal laws and regulations which must be obtained or met before the
Improvements may be constructed.
5
4850-1029-3317.4
M The Developer has conducted such investigation as it has deemed
necessary with respect to the establishment of the TIF District and the basis for the
inclusion of the Property therein and, with respect to this Development Agreement and
its acceptance of the TIF Note, is not relying on any representation or warranty of the
EDA or the City with respect to the due establishment thereof or its qualification as a
"redevelopment district".
(g) The Developer's investment in the purchase of the Property and site
preparation, after giving effect to the TIF Note, will be at least 70% or more of the
assessor's current year's estimated market value and, accordingly, Minnesota Statutes,
Sections 1161993 to 1161995, do not apply to this Development Agreement or the
assistance provided by the TIF Note.
Section 2.2 By the EDA and City. The EDA and City make the following
representations as the basis for the undertaking on its part herein contained:
(a) The EDA and City are authorized by law to enter into this Agreement
and to carry out their respective obligations hereunder;
(b) The City will consider zoning modifications for the Property to
accommodate the Development as proposed, and the City has conducted and completed
all environmental reviews and assessments required to be undertaken by it under
applicable law.
(c) The EDA intends to treat the issuance of the TIF Note as reimbursement
for eligible costs under Minnesota Statutes, Sections 469.176, Subd. 4 and Section
469.1763, Subd.3, Clause 4, including interest on unreimbursed costs; and, unless a
subsequent allocation is made, to allocate for purposes of Minnesota Statutes, Section
469.1763, the payment or reimbursement to eligible costs, in the following order: (a)
Developer Acquisition Costs, and (b) Demolition and Soil Correction Costs, paid prior
to April 28, 2017. The Property was determined by the EDA's consultants to include
parcels which contained structurally substandard buildings and adjacent parcels
necessary to provide a site of sufficient size to permit an integrated development.
ARTICLE III.
CONSTRUCTION OF EMPROVEMENTS; PUBLIC IMPROVEMENTS;
OTHER DEVELOPER OBLIGATIONS
Section 3.1 Construction of Minimum hVrovements. The Developer agrees that it will
construct or cause to be constructed the Minimum Improvements and any other Improvements
which the Developer elects to construct on the Property substantially in accordance with the
Development Plans.
Section 3.2 Building Plans. Final Development Plans for the Improvements shall be
subject to approval by the City.
6
4850-1029-3317.4
Section 3.3 Completion of Construction, Subject to Unavoidable Delays, construction
of the Minimum Improvements shall be commenced no later than April 1, 2020. All
construction shall be in conformity with the approved Development Plans. Periodically during
construction, but at intervals of not less than 60 days, the Developer shall make reports in such
detail as may reasonably be requested by the EDA concerning the actual progress of
construction.
Section 3.4 Certificate of Completion. Promptly after notification by the Developer of
completion ofthe Minimum Improvements, the EDA shall inspect the construction to determine
whether it has been substantially completed in accordance with the terms of this Agreement,
including the date for the completion thereof. In the event that the EDA determines that the
construction has been completed substantially in accordance with the Development Plans and
applicable regulations, the EDA shall furnish the Developer with a Certificate of Completion
in the form of Exhibit B. Such certification by the EDA shall be a conclusive determination of
satisfaction and termination of the agreements and covenants in this Agreement with respect to
the obligations of the Developer to construct or cause to be constructed the Minimum
Improvements, and shall constitute a release of the Developer's obligations hereunder.
Section 3.5 Expenses. The Developer shall pay or reimburse the EDA and the City for
all of the out-of-pocket costs incurred by the City and EDA in connection with the
establishment of the TIF District and the negotiation and preparation of the TEF Plan and this
Agreement, including the fees and expenses of their attorneys, financial consultants and other
consultants.
ARTICLE IV.
LIMITATION UPON ENCUMBRANCE; PROHIBITIONS
AGAINST ASSIGNMENT AND TRANSFER; SUBORDINATION
Section 4.1 Limitation Upon Encumbrance of Development. Prior to the issuance of
the Certificate of Completion for the Minimum Improvements, neither the Developer nor any
successor in interest to the Property or any part thereof shall engage in any financing or any
other transaction creating any mortgage or other encumbrance or lien upon the Property,
whether by express agreement or operation of law, or suffer any encumbrance or lien to be
made on or attached to the Property other than the mortgages, liens or encumbrances attached
for the purposes of obtaining funds to the extent necessary for acquiring and developing the
Property and constructing the Improvements and such additional funds, if any, in an amount
not to exceed the costs of developing the Development, without the prior written approval of
the EDA. The EDA shall not approve any Mortgage which does not contain terms which
conform to the terms of this Article IV of this Agreement.
Section 4.2 Rei resentation as to Develo ment. The Developer represents and agrees that
its undertakings pursuant to this Agreement are for the purpose of implementation of the
Development. The Developer further recognizes that, in view of the importance of the
Development to the general welfare of the EDA and the substantial financing and other public
7
4850-1029-3317.4
aids that have been made available by the EDA and the City for the purpose of making the
Development possible, the qualifications and identity of the Developer are of particular concern
to the EDA. The Developer further recognizes that it is because of such qualifications and
identity that the EDA is entering into this Agreement, and, in so doing, is further willing to rely
on the representations and undertakings of the Developer for the faithful performance of all
undertakings and covenants agreed by Developer to be performed.
Section 4.3 Prohibition Against Transfer of Property and Assi rnent of Agreement.
For the reasons set out in Section 4.2 of this Agreement, the Developer represents and agrees
that, prior to the issuance of the Certificate of Completion for the Minimum Improvements:
(a) Except only transfers to affiliated entities in which MG Eagan, LLC
or McGough Development, LLC has an ownership interest and/or management control
and transfers or encumbrances for the purpose of obtaining financing necessary to
enable the Developer or any successor in interest to the Property, or any part thereof, to
acquire and develop the Property and perform the Developer's obligations with respect
to the Development under this Agreement, and any other purpose authorized by this
Agreement, the Developer, except as so authorized, has not made or created, and will
not make or create, or suffer to be made or created, any total or partial sale, assignment,
conveyance, or any trust or power, or transfer in any other mode or form of or with
respect to this Agreement or the Development or any part thereof or any interest therein,
or any contract or agreement to do any of the same, without the prior written approval
of the EDA, which approval shall not be unreasonably withheld; and
(b) The EDA shall be entitled to require, except as otherwise provided in
this Agreement, as conditions to any such approval under this Section 4.3 that: (i) any
proposed transferee shall have the qualifications and financial responsibility, as
determined by the EDA, necessary and adequate to fulfill the obligations undertaken in
this Agreement by the Developer, or, in the event the transfer is of or relates to part of
the Development, such obligations to the extent that they relate to such part; (ii) any
proposed transferee, by instrument in writing satisfactory to the EDA and in form
recordable among the land records, shall for itself and its successors and assigns, and
specifically for the benefit of the EDA, have expressly assumed all of the obligations of
the Developer under this Agreement and agreed to be subject to such obligations,
restrictions and conditions or, in the event the transfer is of or relates to part of the
Development, such obligations, conditions, and restrictions to the extent that they relate
to such part; provided, that the fact that any transferee of, or any other successor in
interest whatsoever to, the Development or any part thereof, shall, for whatever reason,
not have assumed such obligations or agreed to do so, shall not, unless and only to the
extent otherwise specifically provided in this Agreement or agreed to in writing by the
EDA, relieve or except such transferee or successor from such obligations, conditions,
or restrictions, or deprive or limit the EDA of or with respect to any rights or remedies
or controls with respect to the Development or the construction of the Improvements; it
being the intent of this Section 4.3, together with other provisions of this Agreement,
that to the fullest extent permitted by law and equity and excepting only in the manner
4650-1029.3317.4
and to the extent specifically provided otherwise in the Agreement, no transfer of, or
change with respect to, ownership in the Development or any part thereof, or any interest
therein, however consummated or occurring, whether voluntary or involuntary, shall
operate, legally or practically, to deprive or limit the EDA, of any rights or remedies or
controls provided in or resulting from this Agreement with respect to the Development
and the construction of the Improvements that the EDA would have had if there been no
such transfer or change, and (iii) there shall be submitted to the EDA for review all
instruments and other legal documents involved in effecting transfers described herein,
and, if approved by the EDA, its approval shall be indicated to the Developer in writing.
In the absence of specific written agreement by the EDA to the contrary, no such
transfer or approval by the EDA thereof shall be deemed to relieve the Developer from any of
its obligations with respect thereto which are not expressly assumed by the transferee approved
by the EDA.
Section 4.4 Subordination and Modification for the Benefit of Mortagees.
(a) In order to facilitate the obtaining of temporary or permanent financing for the
acquisition and development of the Property and construction or purchase ofthe Improvements
by the Developer or others, the EDA agrees to subordinate its rights under this Agreement to
the holder of any mortgage entered into for the purpose of obtaining such financing.
(b) In order to facilitate the obtaining of financing for the acquisition and
development of the Property and construction or purchase of the Improvements, the EDA
agrees that it shall agree to any reasonable modification of this Article IV or waiver of its rights
hereunder to accommodate the interests of the holder of the Mortgage, provided, however, that
the EDA determines, in its reasonable judgment, that any such modification(s) will adequately
protect the legitimate interests and security of the EDA with respect to the Development.
ARTICLE V.
TAX INCREMENT NOTE
Section 5.1 Issuance of Tax Increment Note. As reimbursement with interest for a
portion of the Developer Acquisition costs and Demolition and Soil Correction Costs paid by
the Developer and in contemplation of the completion of the Minimum Improvements the EDA
is issuing to the Developer the Tax Increment Note substantially in the form of Exhibit C. The
initial principal amount of the TIF Note shall be $3,800,000, but shall be adjusted to equal the
lesser of (i) $3,800,000 or (ii) $3,800,000 multiplied by a fraction, the numerator of which is
the number of gross square feet of the first office building included in the Improvements and
the denominator of which is 205,000. If additional office or hotel Improvements are
commenced as a second phase prior to April 1, 2025, the then outstanding principal amount
shall be increased by an amount equal to $3,800,000 multiplied by a fraction the numerator of
which equals the number of gross square feet of the second phase Improvements and the
denominator of which is 205,000; provided, however, that the resulting principal amount shall
not exceed $3,800,000 less the principal amount paid under the TIF Note prior to the date of
9
4850 -1O29 -3317A
that adjustment. The TIF Note shall bear interest at the rate of 5.00% per annum, and shall be
payable in annual installment payments payable on February 1 of each year to and including
February 1, 2036, commencing on the February 1 following commencement of construction of
the Minimum Improvements (the "Commencement Date"). Annual installment payments shall
be applied first to interest (including overdue interest) and then to a reduction in outstanding
principal. Interest on the outstanding balance of the TIF Note shall accrue, from and after the
Commencement Date or most recent installment payment date and, if not paid on an installment
payment date for lack of available funds, shall not be added to principal. The TIF Note shall
mature on February 1, 2036.
The Developer covenants and agrees not to sell, transfer or convey the TIF Note
without the express written consent of the EDA; provided, however, that the Developer may,
without such consent, (i) pledge or grant a security interest in the TIF Note to a lender as
security for a loan or (ii) after 10 days' prior written notice to the EDA, transfer a TIF Note
to an institutional investor which has acknowledged in writing that (a) it is acquiring the TIF
Note for purposes of investment and not for resale, (b) it is not relying on any representations
or warranties of the EDA or City, express or implied, as to the availability or adequacy of
the tax increment to pay principal and interest or upon any funds of the City or EDA and (c)
all subsequent transfers shall meet such conditions. The Developer acknowledges that the
EDA makes no representations as to the adequacy of tax increments available to pay the TIF
Note.
The TIF Note shall be payable solely from the available tax increment to the extent
provided in Section 5.2 hereof and the EDA shall have no other liability on either TIF Note,
nor shall either TIF Note be payable out of any funds or properties of the EDA or City other
than tax increment from the Property.
Section 5.2 Tax Increment Available for TIF Notes. The annual installments due on the
TIF Notes shall be paid solely from the tax increment actually received by the EDA from
collections of ad valorem taxes from the Property, after deducting 25% of such increment for
allowable administrative expenses and other purposes. Available tax increment shall be
applied first to interest accrued (including overdue interest) and then to principal. No
installments of principal or interest on the TIF Note are required to be paid after February 1,
2036, regardless of whether the TIF Note has been paid in full. Neither the EDA nor City shall
pledge or appropriate any available tax increment from the Property to the payment of any
other obligation until the TIF Note has been paid in M.
ARTICLE VL
EVENTS OF DEFAULT
Section 6.1 Events of Default Defined. The following shall be deemed Events of
Default under this Agreement and the term shall mean, whenever it is used in this Agreement,
unless the context otherwise provides, any one or more of the following events:
10
4850-1029-3317.4
(a) Failure by the Developer to observe and substantially perform any
material covenant, condition, obligation or agreement on its part to be observed or
performed hereunder, if such failure shall continue for a period of thirty (30) days after
written notice of such failure is given by the EDA or the City to the Developer;
provided, however, that if such failure is of such nature that it cannot with diligence be
cured within thirty (30) days, and provided further that within such thirty (30) -day period
the Developer has commenced such cure and thereafter diligently prosecutes such cure,
such thirty (30) -day period shall be extended for the period reasonably necessary to cure
such failure;
(b) If the Developer shall admit in writing its inability to pay its debts generally
as they become due, or shall file a petition in bankruptcy, or shall make an assignment for
the benefit of its creditors, or shall consent to the appointment of a receiver of itself or of
the whole or any substantial part of the Development;
(c) If the Developer shall file a petition under the federal bankruptcy laws;
103
(d) If the Developer, on a petition in bankruptcy filed against it, be
adjudicated as bankrupt, or a court of competent jurisdiction shall enter an order of
decree appointing, without the consent of the Developer, a receiver of the Developer
or of the whole or substantially all of its property, or approve a petition filed against
the Developer seeking reorganization or arrangement of the Developer under the
federal bankruptcy laws, and such adjudication, order or decree shall not be vacated or
set aside or stayed within 120 days from the date of entry thereof.
Section 6.2 Remedies on Default. Whenever any Event of Default occurs, the EDA and
the City may, in addition to any other remedies or rights given the EDA and the City under this
Agreement, take any one or more of the following actions:
(a) suspend their performance under this Agreement until they receive
assurances from the Developer, deemed reasonably adequate by the EDA or the City,
that the Developer will cure its default and continue its performance under this
Agreement;
(b) cancel or rescind this Agreement;
(c) withhold the Certificate of Completion; or
(d) take whatever action at law or in equity may appear necessary or desirable
to the EDA or the City to enforce performance and observance of any obligation,
agreement, or covenant of the Developer under this Agreement.
Once a Certificate of Completion has been issued, Developer has no further obligations
hereunder, and no remedy shall affect the right of the Developer to receive payment under the
TIF Note.
11
4950-1029-3317.4
Section 6.3 No Remedy Exclusive. No remedy herein conferred upon or reserved to the
EDA is intended to be exclusive of any other available remedy or remedies, but each and every
such remedy shall be cumulative and shall be in addition to every other remedy given under
this Agreement or now or hereafter existing at law or in equity or by statute. No delay or
omission to exercise any right or power accruing upon any default shall impair any such right
or power or shall be construed to be a waiver thereof, but any such right and power may be
exercised from time to time and as often as may be deemed expedient. In order to entitle the
EDA or the Developer to exercise any remedy reserved to it, it shall not be necessary to give
notice, other than such notice as may be required in this Article VI.
Section 6.4 No Additional Waiver Implied by One Waiver. In the event any agreement
contained in this Agreement should be breached by any party and thereafter waived by another
party, such waiver shall be limited to the particular breach so waived and shall not be deemed
to waive any other concurrent, previous or subsequent breach hereunder.
ARTICLE VII.
ADDITIONAL PROVISIONS
Section 7.1 Conflicts of Interest: Representatives Not Individually Liable. No EDA
officer who is authorized to take part in any manner in making this Agreement in his or her
official capacity shall voluntarily have a personal financial interest in this Agreement or benefit
financially therefrom. No member, official, or employee of the EDA shall be personally liable
to the Developer, or any successor in interest, in the event of any default or breach by the EDA
or for any amount which may become due to the Developer or successor or on any obligations
under the terms of this Agreement.
Section 7.2 Non -Discrimination. The provisions of Minnesota Statutes. Section 181.59,
which relate to civil rights and non-discrimination, shall be considered a part of this Agreement
and binding on the Developer as though fully set forth herein.
Section 7.3 Notice of Status and Conformance. At such time as all of the provisions of
this Agreement have been fully performed by the Developer, the EDA and the City shall, upon
not less than ten days prior written notice by Developer, execute, acknowledge and deliver
without charge to Developer or to any person designated by Developer a statement in writing
in recordable form certifying that this Agreement has been fully performed and the obligations
hereunder fully satisfied.
Section 7.4 Notices and Demands. Except as otherwise expressly provided in this
Agreement, a notice, demand or other communication under this Agreement by either party to
the other shall be sufficiently given or delivered if it is sent by mail, postage prepaid, return
receipt requested or delivered personally:
(a) As to the EDA:
Executive Director
12
4650-1029-3317.4
Eagan Economic Development Authority
3830 Pilot Knob Road
Eagan, MN 55122
(b) As to the City:
City of Eagan
3830 Pilot Knob Road
Eagan, MN 55122
(c) As to the Developer:
MG EAGAN, LLC
c/o McGough Development, LLC
2737 Fairview Avenue North
St. Paul, MN 55113
Attn: Mark Fabel, Executive Vice President
with a copy to:
Brian S. McCool
Fredrikson & Byron P.A.
200 S. 6' Street, Suite 4000
Minneapolis, MN 55402
or at such other address with respect to any party as that party may, from time to time, designate
in writing and forward to the -others as provided in this Section 7.4.
Section 7.5 Couner arts. This Agreement may be simultaneously executed in any
number of counterparts, all of which shall constitute one and the same instrument.
IN WITNESS WHEREOF, the EDA and the City have caused this Agreement to be duly
executed in their names and behalf and the Developer has caused this Agreement to be duly
executed as of the day and year first above written.
EAGAN ECONOMIC
DEVELOPMENT AUTHORITY
By
Mike Maguire, President
And By
David M. Osberg, Executive
Director
13
4850-1029-3317A
STATE OF MINNESOTA)
SS
COUNTY OF DAKOTA)
The foregoing instrument was acknowledged before me this _ day of . 2017, by
Mike Maguire and David M. Osberg, the President and Executive Director of the Eagan Economic
Development Authority, a municipal corporation under the laws of the State of Minnesota, on
behalf of the Eagan Economic Development Authority.
STATE OF MINNESOTA)
SS
COUNTY OF DAKOTA)
Notary Public
CITY OF EAGAN
By
Mike Maguire, Mayor
And By
Christina M. Scipioni, City Clerk
The foregoing instrument was acknowledged before me this day of v __-.
2017, by Mike Maguire and Christina M. Scipioni, the Mayor and City Clerk of the City of
Eagan, a municipal corporation under the laws of the State of Minnesota, on behalf of the
corporation.
Notary Public
MG EAGAN, LLC
B /
Y
Thomas J. Mcdough, JV,
President
14
4850-1029-3317.4
STATE OF MINNESOTA)
SS
COUNTY OF PA*e-+A )
The foregoing instrument was acknowledged before me this iV 'day ofi 2017, by Thomas J.
McGough, Jr., the President of MG EAGAN, LLC, a Minnesota limited Fiability company, on behalf
of the company.
SHANNON M. SEIFERTPublic
Nt3TWFUME-M1�6+fESM �Y
My Commission Expires
January 31, 2018 o
15
4850-1029-3317.4
1 *114 :11. 61
DESCRIPTION OF PROPERTY
The Property is located in Dakota County, Minnesota and is legally described as
follows:
Lot 1, Block 1, Blue GENTIAN Corporate Center
16
4850-1024-3317.4
EXHIBIT B
CERTIFICATE OF COMPLETION
The undersigned hereby certifies that MG Eagan, LLC and or its successors or assigns have fully
and completely complied with the obligations of the Developer under that document entitled
"Second Amended and Restated Development Agreement," dated April _, 2017 between the
Eagan Economic Development Authority, the City of Eagan and MG Eagan, LLC, with respect to
construction of the Minimum Improvements in accordance with the approved construction
plans and is and are released and forever discharged from its and their obligations to construct
the Minimum Improvements under such above -referenced Development Agreement.
EAGAN ECONOMIC DEVELOPMENT
AUTHORITY
M
Executive Director
[Notary and Legal Description to be added so that instrument is in recordable form]
17
4950-1029-3317.4
A: 11: i
FORM OF TAX INCREMENT NOTE
$3,800,000
UNITED STATES OF AMERICA
STATE OF MINNESOTA
EAGAN ECONOMIC DEVELOPMENT AUTHORITY
TAX INCREMENT REVENUE NOTE
The Eagan Economic Development Authority (the "EDA"), Eagan, Minnesota, for
value received, promises to pay, but solely from the source, to the extent and in the manner
hereinafter provided, to MG Eagan, LLC (the "Owner") the lesser of (a) principal sum of
($3,800,000), or (b) the Adjusted Principal Amount determined as described below, in annual
installments due on the first February 1 following the Commencement Date described below
and on each February 1 thereafter up to and including February 1, 2036 (each being a
"Scheduled Payment Date"), together with interest on the outstanding and unpaid principal
balance of this Note at the rate of 5.00% per annum which accrued during the previous 12 -
month period. Installment payments shall be applied first to interest (including overdue
interest) and then to a reduction of outstanding principal. Interest on the outstanding principal
balance of this Note shall accrue from the Commencement Date and shall not be added to the
principal amount on each February 1 installment payment date if not paid on such date. Each
payment on this Note is payable in any coin or currency of the United States of America which
on the date of such payment is legal tender for public and private debts and shall be made by
check or draft made payable to the Owner and mailed to the Owner at the postal address within
the United States designated from time to time by the Owner. The "Commencement Date" is
the date the Owner begins construction of the Minimum improvements, consisting of an office
building of at least 100,000 square feet pursuant to the Development Agreement described
below. The EDA shall have no obligation to pay principal or interest on this Note if the
Commencement Date does not occur on or prior to April 1, 2020. As provided in the
Development Agreement, the "Adjusted Principal Amount" of this Note equals $3,800,000
multiplied by a fraction, the numerator of which equals the number of gross square feet of
initial office building included in the Improvements, as defined in the Development
Agreement, and the denominator of which is 205,000, and shall be further adjusted in the event
a second phase of Improvements is commenced prior to April 1, 2025, as provided in section
5.1 of the Development Agreement.
This Note is subject to prepayment on any Scheduled Payment Date at the option of the
EDA, in whole or in part, upon payment to the Owner of the principal amount of the Note to
be prepaid, without premium or penalty.
EXCEPT AS PERMITTED BY THE DEVELOPMENT AGREEMENT, THIS NOTE
IS TRANSFERABLE ONLY WITH THE CONSENT OF THE EDA AND ONLY UPON
18
4850-1024-3317.4
THE REGISTER OF THE EDA TREASURER, AS REGISTRAR, BY THE OWNER
HEREOF OR BY ITS DULY AUTHORIZED ATTORNEY.
This Note is a special and limited obligation and not a general obligation of the EDA,
which has been issued by the EDA pursuant to and in full conformity with the Constitution and
laws of the State of Minnesota, including Minnesota Statutes, Section 469.178, subdivision 4,
to aid in financing a "project", as therein defined, of the EDA consisting generally of
reimbursing certain costs incurred and to be incurred and paid prior to April 28, 2017 within
and for the benefit of its Tax Increment Financing District No. 2-5. This Note is issued pursuant
to a Second Amended and Restated Development Agreement dated as of April 18, 2017
between the EDA and the Owner (the "Development Agreement").
THIS NOTE IS NOT PAYABLE OUT OF ANY FUNDS OR PROPERTIES OTHER
THAN AVAILABLE TAX INCREMENT, AS DEFINED BELOW.
The principal of and interest on this Note is payable solely from and only to the extent
of Available Tax Increment received by the EDA as of each Scheduled Payment Date which
has not previously been applied to payment of this Note. For purposes of this Note, the term
"Available Tax Increment" means 75% of the amounts which would have been received as tax
increment in the year preceding a Scheduled Payment Date from collections of ad valorem
taxes from the Property (as defined in the Development Agreement) in the EDA' s Tax
Increment Financing District No. 2-5.
The EDA shall pay to the Owner on each Scheduled Payment Date all Available Tax
Increment on that date until such time as all accrued interest and outstanding principal under
this Note has been paid in full. To the extent that the EDA is unable to pay the total principal
and interest due on this Note at or prior to any February 1 installment payment date hereof
as a result of its having received as of such date insufficient Available Tax Increment, such
failure shall not constitute a default under this Note, but such unpaid interest or principal
shall remain payable at the next February 1 installment payment date. The EDA shall have
no obligation to pay the principal of or interest on this Note after February 1, 2036.
This Note shall not be payable from or constitute a charge upon any funds of the EDA,
and the EDA shall not be subject to any liability hereon or be deemed to have obligated itself
to pay hereon from any funds except the Available Tax Increment, and then only to the extent
and in the manner herein specified.
The Owner shall never have or be deemed to have the right to compel any exercise of
any taxing power of the EDA or of any other public body, and neither the EDA nor any council
member, officer, employee or agent of the EDA, nor any person executing or registering this
Note shall be personally liable hereon by reason of the issuance or registration hereof or
otherwise.
IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions, and things
required by the Constitution and laws of the State of Minnesota to be done, to have happened,
and to be performed precedent to and in the issuance of this Note have been done, have
l�
4850-1029-3317.4
happened, and have been performed in regular and due form, time, and manner as required by
law, and that this Note, together with all other indebtedness of the EDA outstanding on the date
hereof and on the date of its actual issuance and delivery, does not cause the indebtedness of
the EDA to exceed any constitutional or statutory limitation.
20
4854-1029-3317.4
IN WITNESS WHEREOF, the EDA has caused this Note to be executed by the manual
signatures of the President and Executive Director of the EDA, all as of the _ day of April, 2017,
ATTEST:
EAGAN ECONOMIC DEVELOPMENT
AUTHORITY
Lo
(Form of Transfer)
President
For value received, the undersigned Owner does hereby assign and transfer the
foregoing Note to the named Assignee, and the undersigned Treasurer of the Eagan Economic
Development Authority, as registrar, hereby certifies that the foregoing Note has been
transferred and registered on the bond register in the name of such Assignee.
Signature of Date of
Name of Assimiee Signature of Owner Executive Director Transfer on
Register
21
48504029-3317.4
Agenda Information Memo
April 18, 2017 City Council Meeting
CONSENT AGENDA
Q. Approve A Resolution To Accept A Grant From The Metropolitan Regional
Arts Council In The Amount Of $5,000 For A Community Arts Grant
Action To Be Considered:
To approve a resolution to accept a grant from the Metropolitan Regional Arts Council in
the amount of $5,000 for a Community Arts Grant.
Facts:
➢ The City Council approved the submission of an application for a Community Arts
Grant to fund arts programming throughout the community in September of
2016.
➢ The City of Eagan was notified that they were awarded a grant of $5,000, which
will be matched with 25% in cash.
➢ The grant funding will support the following activities in 2017:
o Harvest of Art event. Activities to include public Raku firing, Harvest of
Art exhibit, entertainment and artist displays/sale by local artists and the
annual Community Supported Art (CSA) project.
o Activities for Eagan Art House 20th Anniversary year.
o Programming and promotion will take place from January through
September, 2017.
➢ The cash match is included in the 2017 budget through program fees and staff
salaries.
Attachments: (1)
CQ -1 Resolution
CITY OF EAGAN
RESOLUTION
TO APPROVE A RESOLUTION TO ACCEPT A GRANT FROM THE METROPOLITAN
REGIONAL ARTS COUNCIL IN THE AMOUNT OF $5,000 FOR ART PROGRAMMING IN
THE COMMUNITY.
WHEREAS, Eagan Parks and Recreation applied for a grant from Metropolitan Regional
Arts Council for art programming in the community, and
WHEREAS, at their September 20, 2016 meeting the City Council approved the
submission of an application for a Community Arts Grant, and
WHEREAS, the City of Eagan was notified that they were awarded a grant of $5,000,
which will be matched with 25% in cash, and
NOW, THEREFORE, BE IT RESOLVED that the Eagan City Council does hereby
accept the Community Arts Grant of $5,000 from the Metropolitan Regional Arts Council for arts
programming in the community.
Motion made by:
Seconded by:
Those in favor:
Those against:
Dated:
CITY OF EAGAN
CITY COUNCIL
By:
Mayor
Attest:
City Clerk
CERTIFICATION
I, Christina M.Scipioni, City Clerk for the City of Eagan, Dakota County, Minnesota, do
hereby certify that the foregoing resolution was duly passed and adopted by the City Council of
the City of Eagan, Dakota County, Minnesota, in a regular meeting thereof assembled this 18`h
day of April, 2017.
City Clerk
Agenda Information Memo
April 18, 2017 Eagan City Council Meeting
CONSENT AGENDA
R. Project 1176 — Community Center Parking Lot Improvements
Action To Be Considered:
Approve Project 1176 (Community Center Parking Lot Improvements), authorize
preparation of detailed final plans and specifications, and authorize the Mayor and City
Clerk to execute all related documents
Facts:
➢ On February 17, 2015, the City Council approved the plans and specifications for
Contract 15-02, Citywide Street Improvements. At the direction of the Council,
the contract included the expansion of the Eagan Community Center (1501
Central Parkway) parking lot and extension of a trail from the community center
entrance through a portion of the parking lot to accommodate pedestrian
accessibility and increased parking demand at peak use of the festival grounds
and center.
➢ Project 1176 provided for the construction of said parking lot expansion and
pedestrian improvements, with associated costs programmed for the 2015
Eagan Community Center (ECC) Fund. .
➢ On April 7, 2015, Contract 15-02 was awarded to Hardrives, Inc. All work under
Contract 15-02 has not been completed.
➢ While the City Council directed the inclusion of Project 1176 as part of Contract
15-02, there was not official Council action taken to approve Project 1176. It
would be appropriate, as typical, to have Project 1176 approved by formal
Council action.
Attachments (0)
Agenda Information Memo
April 18, 2017, Eagan City Council Meeting
CONSENT AGENDA
S. Approve Sound Amplification Permit for La Fonda de Los Lobos
Action To Be Considered:
To approve a Sound Amplification Permit for an outdoor event with electronic sound
system/audio equipment use after 10 p.m. to be held May 5 and 6 at 3665 Sibley
Memorial Highway.
Facts:
➢ An outdoor event with musical entertainment past 10 p.m. requires a permit and
approval from the City Council and is subject to the requirements outlined in City
Code Chapter 10, Section 10.31.
➢ La Fonda de los Lobos is planning an outdoor event on May 5 and 6, 2017. Part
of the planned event is live outdoor music from 8:00 p.m. to 12:00 midnight.
The event will take place in the fenced patio area attached to the establishment.
The Community Development Department and Police Department have
reviewed and signed off on the application.
➢ La Fonda's held a Cinco de Mayo 3 -day event in 2016. The bands were located
within a tent on the northwest side of the building with the speakers facing south.
Two noise complaints were received by the City. For 2017, La Fonda's is placing the
bands on the patio with the speakers facing north toward the industrial area.
➢ Surrounding uses within % mile are limited industrial to the north and west and
multi -family residential to the south and east. The stage and amplification
equipment will be placed at the south end of the patio with the amplification
equipment facing north toward the industrial area.
Issues: None
Attachments: (3)
CS -1 Sound Amp Permit
CS -2 Location Map
CS -3 Radius Map
City of Eajan
3830 Pilot Knob Road
Eagan MN 55122
Phone: (651) 675-5690
Fax: (651) 675-5694
Use BLUE or BLACK Ink
-----------------
For
--------------- For Office Use
I I
Permit
I I
Permit Fee: r • L C' P_C V
Date Received:Staff-
----_---____ LJ
2017 SOUND AMPLIFICATION PERMIT (OUTDOOR EVENTS AFTER 10PM)
✓ Eagan City Code Section 10.31 requires a permit for outdoor electronic sound system / audio equipment use after 10:OOPM. A
completed written application meeting the requirements of Section 10.31, accompanied by a payment of $75.00 and a site plan
must be filed with the Community Development Department three full weeks in advance of the City Council meeting at which it will
be considered. A copy of Section 10.31 is attached for your use.
✓ Sound produced under the permit shall not exceed the maximum allowable sound pressure level as measured by Type 1 or 2
decibel meter, using the A -weighted fast response scale meeting ANSI Specifications, Section 1.4 —1971.
o % mile radius from the property line, 3-5 feet above ground level — 55 decibels
o '/z mile radius from the property line, 3-5 feet above ground level — 50 decibels
✓ City Council approval is also required in instances where liquor will be present. In those cases, you may submit the liquor license
application at the same time sound amplification permit so both may be considered at the same City Council meeting.
✓ PLEASE PRINT ALL INFORMATION REQUESTED ON THIS APPLICATION
Event Contact
Information*
1
Event Details
Name of individual
responsible for event: ILFL b4l1
/�
!' Contact phone
Address: P I during the event:
Phone: �/� (�Alternative Phone:
Emarl
Fax:
l -ifs
" This person must be present at all times during the event and act as the on-site contact for City officials during
the event. The applicant and the contact person shall be responsible for compliance with the terms and condition
imposed by the permit and Section 10.31. The applicant or contact person shall maintain the permit on the
permitted premises at all times during which the permitted electronic sound system or audio equipment is in use.
The permit shall be presented to any City official or law enforcement officer upon demand.
Address of event:
Purpose of event:
Date(s) of event &
day(s) of the week:
Times of event:
ir�fGfr flab
Start: 614 Finish: Cw
Set up begins at:
(Date 1 Time)
Maximum number of people
in attendance on any day:
Take down completed
by: (Date 1 Time)
2015 SOUND AMPLIFICATION PERMIT Page 1 of 3
Description of electronic sound system or audio equipment:
Type of sound to be generated (live music, recorded
music, announcements, speeches, etc):
Sound will be generated during these hours each i
Name of contractor ! individual 12
responsible for sound:
Address:
Phone:
�IJ�1ti+lL5iL
Alternative Phone:
Will there be hired speakers / performers at the event? NJ Yes ❑ No
If yes, name individuals
Description of entertainment to be provided:
pie
1A, -g:� M
Nlamei�b J t� �"yjAddress �� � � 15 c1g kn /Zip
Ia J RJ—
Name Address City / State / Zip
Name
Address
Will food or alcohol be served at the event?
If yes, describe: f _i'"I AUL I t
0]
Yes JI No
NOTE: Additional Permits may be necessary
❑ Attach 2 copies of a Site Plan. Include location of tents, stages, booths, first aid / relief stations, dumpsters,
portable toilets, sound amplification equipment, signs and banners. Be specific as to the placement of sound system
speakers and the direction the sound will travel.
NOTE: Additional Permits may be necessary
2015 SOUND AMPLIFICATION PERMIT Page 2 of 3
List the cities in which the applicant or contact person has been issued a similar permit in the last five (5) years
by this city or any other municipality or government entity with authority to issue such similar permit. Include
contact information for the permitting entity and a statement as to whether the applicant or contact person was
or was no vialation of any term or condition of the permit. �y
The City Council may deny the permit if the proposed use of electronic sound system or audio equipment will adversely affect
surrounding properties.
The City Council may impose conditions upon the issuance of any permit that are reasonably related to ensure that the sound
generated by the permitted sound system or audio equipment does not unreasonably disturb the persons and property surrounding the
permitted location.
I have received from the City of Eagan a copy of Eagan City Code 10.31 (Noisy Gatherings and Electronic Sound System Equipment)
and will familiarize myself with the provisions contained within them.
I hereby acknowledge that I have read this application, state the application is correct, and agree to comply with Eagan, MN laws
regulating noise and electronic sound s stems / audio equipment use after 10:00PM, and all other ode laws.
Applicant's Printed Name Applicant's Signature
�Z-q--(7
Date
FOR CITY OFFICE USE ONLY
Character and nature of land uses underlying and adjacent to the land upon which the electronic sound system or
audio equipment will be used:
Beat:
Has the applicant or contact person complied with the terms of previous or similar permits issued by another
municipality or government agency during the last five years?
Permit reviewed by:
Ia'
r {J
ommu ty elopmen
Approved by City Council:
2015 SOUND AMPLIFICATION PERMIT Page 3 of 3
3665 Sib Mem Hwy
1 in=47fi
\
F]
Lakes
Storm Basin
N
City of Eapn
Wetlands
Sections Numbers
Aerial Street Names
atyote�an is
Apr 3, 2017
Map Powered byDataLink
0
C>
o
°
r
Z N �
c3
'imp
03
3
M
7
C
CL
N N
A
CD3
0
Z
0
O
7
N
O
O
o�
z
0
A) 1D
G 0.
Z N �
c3
3
M
^�
0
rL
Ztn0
0� Co) Q.
'U
3ic
o
;�ra
',:. f; '� � •�f r � ' , ,�,. r nab � 1� - q"ri ti . �;
. i 7•' � $ `b, S ,icy f'S -'�s.
• b
Et
.t? fF,w
//
Il' 4
�fYi. � r •a...:.. SF`s ]/ '_"W. ..... � � _ .
i fTR
��ni zy
i4'yjC
x,01 I
w o W wt�k .Yi q� I t �e aaK i►
,,�i�• rN 1 4� * �{/' l s'�p� f•`-•y5_',''°p Fli•c' '" ti w
1.0�„ i ,I
j, i� t• ✓`�'3rtrq
•ter' se''... ��"� . , v - •.. �:?� st.^��. f`ti j�GolrArl'�rei f :.��i'V'L,� d^a+'`1t.`"�i;
4 fj`�a ride +' ne yI °I l i
r
',i,
'"yt' '`v -•`� 7kr �,� -`ice' . � w ,, ,k, r._.,�, .�� .* ..
t .q a 'k>, �.. ;� s • �'� a � ,
Miles
Outdoor Event with Amplified Sound 0 0.25 0.5
La Fonda -3665 Sibley Memorial Hwy 4A
RADIUS
N
Agenda Information Memo
April 18, 2017 Eagan City Council Meeting
PUBLIC HEARING
A. Adopt a Resolution authorizing an amendment to a Minnesota Investment Fund
Agreement with the Department of Employment and Economic Development for the
benefit of Databank Holdings LP.
Action To Be Considered:
Adopt a Resolution authorizing execution of a one year extension to the Minnesota Investment
Fund Agreement with the Department of Employment and Economic Development for the
benefit of Databank Holdings LP.
➢ On April 21, 2015 the City of Eagan was awarded a $135,000 grant from the Minnesota
Investment Fund (MIF) program administered by the State Department of Employment
and Economic Development (DEED) to provide a forgivable loan to Databank Holdings LP
for equipment costs as part of a new datacenter at 3255 Neil Armstrong Boulevard.
➢ The grant contract with DEED and loan agreement with Databank Holdings LP requires
the company to meet a job creation goal of 18 new employees within a two-year period,
or payback a pro rata share of the loan. The two-year deadline is May 1, 2017.
➢ The grant contract allows the City (grantee) to extend the grant period for one year
from the compliance date to May 1, 2018, provided the City holds a public hearing and
authorizes the extension by resolution.
➢ Databank Holdings LP has indicated in their project update they are close to meeting
their hiring goals but, due to turnover, complexity of their ramp up and local economic
factors, they would like a one-year extension to be certain they meet the compliance
date.
➢ The project has met or exceeded all other compliance goals including equity and
equipment expenditures.
Attachments: (4)
PHA -1 Location Map
PHA -2 Resolution
PHA -3 Letter of request from Databank Holdings LP
PHA -4 Databank Project Update
Z z
�o
LL p
FO
N
N
O
Y
C C
■rte
m O
� •y
V
E
A
N
C
=
j oz
(D y
7
a. M0
Z z
�o
LL p
FO
N
O
R
V
N
=
7
V)
C
C
V
Y
m
O
9
�
V
a
m'
a
0
0
O
CITY OF EAGAN, MINNESOTA
RESOLUTION NO.
MINNESOTA INVESTMENT FUND PROGRAM
RESOLUTION AUTHORIZING AN AMENDMENT TO THE GRANT CONTRACT
BETWEEN THE CITY OF EAGAN AND THE STATE OF MINNESOTA ACTING
THROUGH THE DEPARTMENT OF EMPLOYMENT AND ECONOMIC
DEVELOPMENT FOR THE PROJECT DATABANK HOLDINGS, LP
BE IT RESOLVED that the City Eagan acted as the legal sponsor for the project contained in the
Minnesota Investment Fund Program for the project entitled Databank Holdings, LP
BE IT FURTHER RESOLVED that the City of Eagan has the legal authority to amend the Grant Contract
dated October 27, 2015 between the City of Eagan and the State of Minnesota acting through the
Department of Employment and Economic Development.
BE IT FURTHER RESOLVED that the City Eagan has held a public hearing for the purpose of accepting
comments to amend the Grant Contract in compliance with the Minnesota Business Subsidy Law to
extend the term of the Grant Contract.
BE IT FURTHER RESOLVED that the City Council of the City of Eagan authorizes to execute an
amendment to the Grant Contract dated October 27, 2015 between the City of Eagan and the State of
Minnesota acting through the Department of Employment and Economic Development.
NOW, THEREFORE BE IT RESOLVED that the Mayor and City Clerk, or their successors in office, are
hereby authorized to execute the amendments, thereto, as are necessary to implement the project on behalf
of the City of Eagan.
ADOPTED by the City Council of the City of Eagan this 18th day of April, 2017.
IM
Attest:
Ayes:
Nayes:
Mike Maguire
Its: Mayor
Christina M. Scipioni
Its: Clerk
CERTIFICATION
I, Christina M. Scipioni, Clerk of the City of Eagan, Dakota County, Minnesota, do hereby certify that the
foregoing resolution was duly passed and adopted by the City Council of the City of Eagan, Dakota County,
Minnesota, in a regular meeting thereof assembled this day of _ , 2017.
Christina M. Scipioni, Clerk
Vr%,1r1*_1
DATA BAN K
Date: March 28, 2017
To: City of Eagan
From: DataBank Holdings, LP
Subject: Minnesota Investment Fund — Request for Extension
Pursuant to the Agreement for Loan of Minnesota Investment Funds between DataBank
Holdings, LP ("Borrower") and the City of Eagan (the "City"), DataBank hereby requests a one
year extension of the Compliance Date.
Per the Agreement, DataBank had two years following the Disbursement Date and
continuing through at least the Compliance Date, the borrower shall create at least eighteen (18)
new permanent, full-time equivalent jobs (the "New Jobs"). The New Jobs must pay a wage of at
least $31.66 per hour, exclusive of benefits.
DataBank has successfully operated at the Property since inception and has been a valuable
addition to the region's economic and employment base. DataBank appreciates the State, City,
and County support it has received, but due to economic factors, DataBank is in need of a one year
extension of the Agreement for Loan of Minnesota Investment Funds.
It is our sincerest hope that this request is granted. Please feel free to contact me directly
with any questions related to this request or any related matter. Again, thank you for your valued
partnership and appreciation of our need for a one year extension.
Sincerely,
Kevin Ooley
Chief Financial Officer
DataBank Holdings, LP
3255 Neil Armstrong Blvd
Eagan, MN 55121
Ph: (214) 646-1939
koole% ,vdatabank.com
O
LA
F
o
Ln
EO
C:
:3Ln0-
C:
�E
Ln
c
O
'7
y
a
E
a)
O
UCL
c
w
O
o
m
+
C)
fu
W
LnN
N
m
u00
o-
E
1.0
O
v
N
O
O
E
a
aj
o
t►
u
3
�'
C:
ca
V
4-j
cn
>
s=
bn
w
OJ
�
L
>
>
-
4-
4-jN
L
•
—
crs
O
4-
U
O
C
u-
u
4
O
V
Q
U
0
U
N
Q
`-
O
O
N
0
c
O
CID
c
fa
.�
s
fa
�
-C
x
�
O
�
j
N
�
4-j
O
�
N
ai
aJ
EE
,
O
0
•=3
CL
+,
4-j
cr
U5
U
O
N
N
>
E
-6
N
O
•-
O
O
O
�
E
W
Qs
+�
s
40
s
tm
4-J
m
bio
0
S
U
IA
O
=
i
0-
C13
.N
CO
x x
+J
cr c
a-J
QJ
E
O
N
W
r
LL
C—
G
s
L
Q
�
d -J
O
. Ln
�
�--+
U
N
N
O
O
O
�
O
O
N
�
4-J
4-J
Ln
�
tv0
N
cr
bA
w
4
O
'cn
X
V
N
a
N
J
O
4 -JL-
�
a
)
ca
c
L
�
ai0
.N
LU
LU0
O
N
W
AGENDA
CITY OF EAGAN
REGULAR MEETING OF THE ECONOMIC DEVELOPMENT AUTHORITY
EAGAN MUNICIPAL CENTER
April 18, 2017
The Council acting as the Board of Commissioners of the Economic Development
Authority ("EDA") may discuss and act on the agenda items for the EDA in conjunction
with its actions as a Council.
A. CALL TO ORDER
B. ADOPT AGENDA
C. CONSENT AGENDA
1. APPROVE EDA Minutes
2. Adopt resolution approving Second Amended and Restated Development
Agreement with MG Eagan, LLC
D. PUBLIC HEARING
E. OLD BUSINESS
F. NEW BUSINESS
G. OTHER BUSINESS
H. ADJOURN
Agenda Information Memo
April 18, 2017 Eagan Economic Development Authority Meeting
141SIL&W 1<i_TC1 4 `
The following items referred to as consent items require one (1) motion by the
Economic Development Authority. If the Economic Development Authority wishes to
discuss any of the items in further detail, those items should be removed from the
Consent Agenda and placed under Old or New Business unless the discussion required is
brief.
1. Approve Minutes
Action To Be Considered:
To approve the minutes of the April 4, 2017 regular Economic Development Authority
meeting as presented or modified.
Attachments: (1)
EDAC1-1 April 4, 2017 Minutes
MINUTES OF A MEETING OF THE
EAGAN ECONOMIC DEVELOPMENT AUTHORITY
Eagan, Minnesota
April 4, 2017
A meeting of the Eagan Economic Development Authority was held on Tuesday, April 4, 2017 at the Eagan
Municipal Center. Present were President Maguire, Commissioner Bakken, Commissioner Fields, and
Commissioner Hansen. Commissioner Tilley was absent. Also present were Executive Director Osberg, City
Attorney Bauer, and Community Development Director Hutmacher.
CALL TO ORDER
President Maguire called the Economic Development Authority meeting to order.
ADOPT AGENDA
Commissioner Bakken moved, Commissioner Fields seconded a motion to approve the agenda as
presented. Aye:4 Nay:0
CONSENT AGENDA
Commissioner Fields moved, Commissioner Bakken seconded a motion to approve the Consent Agenda
as presented. Aye: 4 Nay: 0
1. It was recommended to approve the minutes of March 21, 2017.
2. It was recommended to approve a License Agreement for Construction Staging and Erosion
Control with Onion City Lodging, LLC.
3. It was recommended to approve a Third Amendment to Sale and Purchase Agreement with
Affinity at Eagan, LLC.
There was no Old Business.
There was no New Business.
There was no Other Business.
OLD BUSINESS
NEW BUSINESS
OTHER BUSINESS
ADJOURNMENT
Commissioner Bakken moved, Commissioner Hansen seconded a motion to adjourn the meeting. Aye: 4
Nay: 0
Date
David M. Osberg, Executive Director
Agenda Information Memo
April 18, 2017 Eagan Economic Development Authority Meeting
CONSENT AGENDA
2. Adopt a Resolution Approving a Second Amended and Restated Development Agreement
with MG Eagan, LLC.
Action To Be Considered:
Adopt a resolution approving a Second Amended and Restated Development Agreement with
MG Eagan, LLC
Facts:
➢ The Northeast Eagan Redevelopment District was first certified in July 2002 as TIF
District 2-4 which incorporated a portion of what is now the Interstate
Partners/Grand Oak development, property west of Highway 55, and property north
of Blue Gentian Road.
➢ McGough Development owns property north of Blue Gentian Road which was
originally occupied by older, dilapidated single-family homes without municipal
sewer and water. McGough voluntarily acquired all but four parcels to complete
land assembly for a proposed office development.
➢ McGough requested EDA assistance to acquire the remaining four parcels through
eminent domain. McGough has provided complete reimbursement to the EDA for
its costs of approximately $3.2 million.
➢ On June 18, 2008, McGough Development, the City and the EDA entered into an
Amended and Restated Development Agreement whereby the EDA agreed to
provide a pay-as-you-go TIF Note if the developer met certain minimum
improvements. Phase I was proposed to be a 75,000 square foot office building and
Phase II was proposed as an additional 130,000 square foot building. The EDA would
issue a TIF Note for $3.8 million upon completion of both phases.
➢ As part of a restructuring of the Northeast Eagan TIF District 2-4, the City created a
new TIF District (TIF 2-5) in 2009, which now includes only the McGough property
and property on the west side of Highway 55. This District was certified on April 28,
2009.
➢ The economic downturn negatively impacted McGough's ability to market the site
for an office user. Although the property has excellent exposure from Highway 494,
the access is somewhat circuitous, and topographical constraints will result in
significant grading costs for any development.
➢ McGough has recently approached the City with a potential 150,000 square foot
office development with surface parking. A second phase of 60,000 square feet is
possible.
➢ Under current TIF statutes, the City/EDA must issue the TIF Note by April 28, 2017.
Although McGough has incurred qualified costs that exceed the proposed TIF Note,
all of the deadlines under the existing Development Agreement have passed and the
City/EDA will need to amend the Agreement.
➢ The Finance Committee reviewed the proposal at its March 22, 2017 meeting,
provided direction on terms of the Agreement, and recommended approval by the
City Council.
➢ Key terms of the Second Amended and Restated Development Agreement include:
o No increment is paid to the developer until Minimum Improvements of at
least 100,000 square feet of office has been commenced;
o Construction of Minimum Improvements must be commenced no later than
April 1, 2020;
o The outstanding principal of the TIF Note shall be increased if additional
office or hotel development commences prior to April 1, 2025;
o The TIF Note will be prorated based on the actual size of development in
comparison to the 2008 Phase I and II proposal;
o The developer will receive 75% of the increment, and the City will retain 25%
for administration and pooling;
o The TIF Note will mature and no increment will be paid after February 1,
2036.
Attachments: (3)
EDAC2-1 Location Map
EDAC2-2 Resolution Approving Second Amended and Restated Development Agreement with
MG Eagan, LLC for Tax Increment Financing District No. 2-5
EDAC2-3 Second Amended and Restated Development Agreement
r
C
Cd
G
d
d
L
ai
J d
J E
c Q.
M p
CM
m d?
W >
CD
CDa
G
c
E E
ma
z
0
z
CD 7 y
'p Cr rn
a.w
0
P f
iA BLUE
O
a�
0
0
CD
cd
w
c
V
0
L
cm7
N
r
C
Cd
G
d
d
L
ai
J d
J E
c Q.
M p
CM
m d?
W >
CD
CDa
G
c
E E
ma
z
0
z
CD 7 y
'p Cr rn
a.w
0
P f
iA BLUE
O
04 N
N '
r L
L
y iCL
J '
•
•
' � ��lti ��ll��17 Y'Z��i � "'✓
Lo
a�
0
0
co
N
0
L
cm7
N
U
N
n
o
o
Lc)I
N 3
�
C-4
y
N
O
Y m
2
L T
••a
�
o
•
7 r-
F
04 N
N '
r L
L
y iCL
J '
•
•
' � ��lti ��ll��17 Y'Z��i � "'✓
Lo
Extract of Minutes of Meeting of the
Board of Commissioners of Eagan Economic Development Authority
Pursuant to due call and notice thereof, a meeting of the Board of Commissioners of
Eagan Economic Development Authority was duly held in the Eagan Municipal Center, in said
City on Tuesday April 18, 2017, at o'clock P.M.
The following members were present:
and the following were absent:
Commissioner introduced the following resolution and moved its adoption:
RESOLUTION NO.
APPROVING SECOND AMENDED AND
RESTATED DEVELOPMENT AGREEMENT WITH MG EAGAN, LLC
FOR TAX INCREMENT
FINANCING DISTIRCT NO. 2-5
WHEREAS, the EDA has created and established a Tax Increment Financing District
referred to as Tax Increment Financing District No. 2-5 (the "TIF District") in connection
with that part of the Development Program for Northeast Eagan Development District No. 2
which has been established as a Redevelopment Project pursuant to Minnesota Statutes,
Section 469.028 (the "Redevelopment Project Area") and pursuant to the authority granted
by Minnesota Statutes, Sections 469.090 to 469.1081 and 469.001 to 469.047 and Sections
469.174 through 469.179 (collectively, the "Acts"); and
WHEREAS, pursuant to the Acts, the EDA has adopted and the City has approved a
Redevelopment Plan (the "Redevelopment Plan") and a tax increment financing plan (the
"TIF Plan") to finance a portion of the public redevelopment costs of the Redevelopment
Project Area; and
WHEREAS, in order to achieve the objectives of the Redevelopment Plan and the
TIF Plan, the EDA has determined to provide substantial aid and assistance through the
financing of certain land acquisition, demolition, soil correction and public improvement
costs in the Redevelopment Project Area; and
WHEREAS, the EDA, the City of Eagan and MG Eagan, LLC (the "Developer")
entered into an Amended and Restated Development Agreement (the "Prior Agreement")
under which the Developer proposed to develop certain office facilities within the
4822-1989-8694.1
Redevelopment Project Area and the TIF District which the EDA determined would promote
and carry out the Redevelopment Plan and TIF Plan; and
WHEREAS, the Developer has paid Developer Acquisition Costs and Demolition and
Soil Correction Costs under the Prior Agreement in an amount not less than $6,000,000; and
WHEREAS, although the Developer did not commence the Improvements within the
time frame established by the Prior Agreement, the EDA wishes to continue to encourage
development of the Property and remains willing to reimburse the Developer for a portion of
the Developer Acquisition Costs and Demolition and Soil Correction Costs paid by the
Developer; and
WHEREAS, there has been submitted to this Board a Second Amended and Restated
Development Agreement (the "Development Agreement") to amend and restate the Prior
Agreement; and
WHEREAS, by reason of the replatting of the Property into a single parcel, the
Repurchase Agreement attached to the Prior Agreement is eliminated.
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of Eagan Economic
Development Authority as follows:
The Development Agreement and the Tax Increment Note attached thereto are hereby
approved and shall be executed and delivered by the President and Executive Director.
2. As permitted by the TIF Plan and the Acts, the EDA shall apply 25% of the tax increment
form the TIF District for administrative costs and payment or reimbursement of authorized
expenditures for Cedar Grove Development District, and if the Developer satisfies the
conditions of the Development Agreement, the balance shall be applied to payment of the
Tax Increment Note.
Motion by:
Second by:
Those in Favor:
Those Against:
Date:
Mike Maguire, Its President
Attest:
4822-1989-8694.1
David M. Osberg, Its Executive Director
SECOND AMENDED AND RESTATED
DEVELOPMENT AGREEMENT
Dated April 18, 2017
Between
EAGAN ECONOMIC DEVELOPMENT AUTHORITY
CITY OF EAGAN
and
MG EAGAN, LLC
This Instrument Drafted by-
�Ch 1,ie
3400 RBC Plaza
60 South Sixth Street
Minneapolis, Minnesota 55402
Telephone: (612) 334-5000
4830-1024-3317.4
SECOND
AMENDED AND RESTATED
DEVELOPMENT AGREEMENT
THIS AGREEMENT, made and entered into as of this 18t` day of April, 2017, by and
between the EAGAN ECONOMIC DEVELOPMENT AUTHORITY, a Minnesota municipal
corporation (the "EDA"), the CITY OF EAGAN, a Minnesota municipal corporation (the
"City"), and MG EAGAN, LLC, a Minnesota limited liability company (the "Developer")
amends and restates the Amended and Restated Development Agreement dated June 18, 2008
(the "Prior Agreement"), between the EDA, the City and the Developer, as follows:
WITNESSETH:
WHEREAS, the EDA has created and established a Tax Increment Financing District
referred to as Tax Increment Financing District No. 2-5 (the "TIF District") in connection with
that part of the Development Program for Northeast Eagan Development District No. 2 which
has been established as a Redevelopment Project pursuant to Minnesota Statutes, Section
469.028 (the "Redevelopment Project Area") and pursuant to the authority granted by
Minnesota Statutes, Sections 469.090 to 469.1081 and 469.001 to 469.047 and Sections
469.174 through 469.179 (collectively, the "Acts"); and
WHEREAS, the area of the TIF District was formerly a part of Tax Increment
Financing District No. 2-4 (the "Former TIF District"), which has been decertified in part; and
WHEREAS, pursuant to the Acts, the EDA has adopted and the City has approved a
Redevelopment Plan (the "Redevelopment Plan") and a tax increment financing plan (the "TIF
Plan") to finance a portion of the public redevelopment costs of the Redevelopment Project
Area; and
WHEREAS, in order to achieve the objectives of the Redevelopment Plan and the TIF
Plan, the EDA has determined to provide substantial aid and assistance through the financing
of certain land acquisition, demolition, soil correction and public improvement costs in the
Redevelopment Project Area; and
WHEREAS, the Developer proposes to develop certain office or commercial facilities
within the Redevelopment Project Area and the TIF District which the EDA has determined
will promote and carry out the Redevelopment Plan and TIF Plan; and
WHEREAS, the Developer has paid Developer Acquisition Costs and Demolition and
Soil Correction Costs under the Prior Agreement in an amount not less than $6,000,000; and
WHEREAS, although the Developer has not commenced the Improvements within the
time frame established by the Prior Agreement, the EDA wishes to encourage development of
Property and remains willing to reimburse the Developer for a portion of the Developer
Acquisition Costs and Demolition and Soil Correction Costs paid by the Developer; and
2
4$30-1024-3317.4
WHEREAS, this Agreement has been approved by the governing bodies of the EDA and
the City;
NOW, THEREFORE, in consideration of the mutual covenants and obligations of the
EDA, the City and the Developer, the parties hereby represent, covenant and agree, as follows:
ARTICLE I.
DEFINITIONS, EXHIBITS, RULES OF INTERPRETATION
Section 1.1 Definitions. In this Agreement, the following terms have the following
respective meanings unless the context hereof clearly requires otherwise:
U Certificate of Completion. The certificate of completion to be executed and
delivered upon completion of the Minimum Improvements pursuant to Section 3.4, in the
form of Exhibit B hereto.
b City. The City of Eagan, Minnesota.
(c) Demolition and Soil Correction Costs. The costs of the City, the EDA and
Developer of demolition of existing structures on the Property and soil correction
associated with the Improvements.
(d) Develgper. MG Eagan, LLC, a Minnesota limited liability company, its
successors and assigns.
(e) Developer A+ guisition Costs. The actual costs to the Developer of
acquiring the Property, together with relocation costs and interest paid by the Developer
on financing incurred to purchase such property.
(f) Development. The Property and the Improvements to be constructed
thereon according to the Development Plans approved by the EDA and the City.
W Development Plans. Collectively, the preliminary plans, drawings and
related documents furnished to the City, relating to the Property, as the same may be
amended or supplemented from time to time by the Developer and approved by the EDA
and the City, which establish certain design and construction standards for the
Improvements.
W EDA. The Economic Development Authority of the City of Eagan,
Minnesota.
Improvements. The Minimum Improvements and any additional office or
hotel improvements which may be constructed on the Property in accordance with the
Development Plans.
4850-1029-3317.4
Minimum improvements. The improvements to be constructed on the
Property, which shall consist of an office building of at least 100,000 gross square feet and
surface parking, as specified in the Development Plans, but excluding any and all personal
Property
W Mortgage and Holder. The term "mortgage" shall include the mortgage or
mortgages referenced in Article IV of this Agreement and any other instrument creating
an encumbrance or lien upon the Development or any part thereof as security for a loan.
The term "holder" in reference to a mortgage includes any insurer or guarantor (other
than the Developer) of any obligation or condition secured by such mortgage or deed of
trust.
Ll Property. The real property which is included within the TIF District and which
is legally described in Exhibit A attached hereto.
Lml Redevelopment Plan. The Redevelopment Plan for the Redevelopment
Project Area, as amended from time to time.
Un Tax Increment Financing District [TIF District; Tax Increment Financing
District No. 2-5 created by the EDA pursuant to Minnesota Statutes Sections 469.174
through 469.179 and described in the TIF Plan adopted therefor.
Up Tax Increment Fingncin Plan TIF Plan). The plan for development of
the TIF District adopted by the EDA pursuant to Minnesota Statutes Sections 469.174
through 469.179 and approved by a resolution of the City Council adopted June 3, 2008.
W Tax Increment Note ( "TIF Note"). The Tax Increment Revenue Note to be
issued by the EDA to reimburse, with interest, the Developer Acquisition Costs and
Demolition and Soil Correction Costs paid by the Developer prior to the date hereof, in
substantially the form attached as Exhibit C.
W Other Terms. Terms defined in other sections of this Agreement have
the meanings given them.
LrI Unavoidable Delays. Delays which are the direct result of strikes, fire or
other casualty, war, material shortage, weather, causes beyond the constructing party's
control, or acts of God, or acts of any federal, state or local government unit, except
those acts anticipated or contemplated under this Agreement.
Section 1.2 Exhibits. The following Exhibits are attached to and by reference made a
part of this Agreement:
A. Legal Description of Development Property
B. Certificate of Completion.
C. Form of Tax Increment Note.
Section 1.3 Rules of Inten-)retation.
4
4850-1029-3317.4
(a) This Agreement shall be interpreted in accordance with and governed by the laws
of the State of Minnesota.
(b) The words "herein" and "hereof' and words of similar import, without reference
to any particular section or subdivision, refer to this Agreement as a whole rather than any
particular section or subdivision hereof.
(c) References herein to any particular section or subdivision hereof are to the section
or subdivision of this Agreement as originally executed.
(d) Any titles of the several parts, articles and sections of this Agreement are inserted
for convenience and reference only and shall be disregarded in construing or interpreting any of
its provisions.
ARTICLE H.
REPRESENTATIONS AND COVENANTS
Section 2.1 By the Developer. The Developer makes the following
acknowledgements, representations and covenants:
(a) The Developer has the legal authority and power to enter into this
Agreement.
(b) The Developer has acquired the Property and has the necessary financial
resources for construction of the Minimum Improvements.
(c) The Developer will, to the extent required by this Agreement, construct or
cause the construction of the Minimum Improvements in accordance with the terms of
this Agreement, the TIF Plan and all local, state and federal laws and regulations, and
will construct or cause the construction of or pay the costs of construction of any site
improvements, utilities, parking facilities, or landscaping improvements which are
necessary in connection with the construction and operation of the Minimum
Improvements.
(d) At such time or times as may be required by law, the Developer will
have complied with all local, state and federal environmental laws and regulations,
will have obtained any and all necessary environmental reviews, licenses or
clearances under, and will be in compliance with the requirements of the National
Environmental Policy Act of 1969, the Minnesota Environmental Policy Act, and the
Critical Area Act of 1973.
(e) The Developer will obtain, in a timely manner, all required permits,
licenses and approvals, and will meet, in a timely manner, all requirements of all local,
state and federal laws and regulations which must be obtained or met before the
Improvements may be constructed.
4850-1029-3317A
(f) The Developer has conducted such investigation as it has deemed
necessary with respect to the establishment of the TIF District and the basis for the
inclusion of the Property therein and, with respect to this Development Agreement and
its acceptance of the TIF Note, is not relying on any representation or warranty of the
EDA or the City with respect to the due establishment thereof or its qualification as a
"redevelopment district".
(g) The Developer's investment in the purchase of the Property and site
preparation, after giving effect to the TIF Note, will be at least 70% or more of the
assessor's current year's estimated market value and, accordingly, Minnesota Statutes,
Sections 1167.993 to 1167.995, do not apply to this Development Agreement or the
assistance provided by the TIF Note.
Section 2.2 Br _ the EDA and City. The EDA and City make the following
representations as the basis for the undertaking on its part herein contained:
(a) The EDA and City are authorized by law to enter into this Agreement
and to carry out their respective obligations hereunder;
(b) The City will consider zoning modifications for the Property to
accommodate the Development as proposed, and the City has conducted and completed
all environmental reviews and assessments required to be undertaken by it under
applicable law.
(c) The EDA intends to treat the issuance of the TIF Note as reimbursement
for eligible costs under Minnesota Statutes, Sections 469.176, Subd. 4 and Section
469.1763, Subd.3, Clause 4, including interest on unreimbursed costs; and, unless a
subsequent allocation is made, to allocate for purposes of Minnesota Statutes, Section
469.1763, the payment or reimbursement to eligible costs, in the following order; (a)
Developer Acquisition Costs, and (b) Demolition and Soil Correction Costs, paid prior
to April 28, 2017. The Property was determined by the EDA's consultants to include
parcels which contained structurally substandard buildings and adjacent parcels
necessary to provide a site of sufficient size to permit an integrated development.
ARTICLE III.
CONSTRUCTION OF EMPROVEMENTS; PUBLIC EWPROVEMENTS;
OTHER DEVELOPER OBLIGATIONS
Section 3.1 Construction of Minimum Improvements. The Developer agrees that it will
construct or cause to be constructed the Minimum Improvements and any other Improvements
which the Developer elects to construct on the Property substantially in accordance with the
Development Plans.
Section 3.2 Buildin Plans. Final Development Plans for the Improvements shall be
subject to approval by the City.
6
4950-1029-3317A
Section 3.3 Co1ppletion of Construction. Subject to Unavoidable Delays, construction
of the Minimum Improvements shall be commenced no later than April 1, 2020. All
construction shall be in conformity with the approved Development Plans. Periodically during
construction, but at intervals of not less than 60 days, the Developer shall make reports in such
detail as may reasonably be requested by the EDA concerning the actual progress of
construction.
Section 3.4 Certificate of Completion. Promptly after notification by the Developer of
completion of the Minimum Improvements, the EDA shall inspect the construction to determine
whether it has been substantially completed in accordance with the terms of this Agreement,
including the date for the completion thereof. In the event that the EDA determines that the
construction has been completed substantially in accordance with the Development Plans and
applicable regulations, the EDA shall furnish the Developer with a Certificate of Completion
in the form of Exhibit B. Such certification by the EDA shall be a conclusive determination of
satisfaction and termination of the agreements and covenants in this Agreement with respect to
the obligations of the Developer to construct or cause to be constructed the Minimum
Improvements, and shall constitute a release of the Developer's obligations hereunder.
Section 3.5 EWnses. The Developer shall pay or reimburse the EDA and the City for
all of the out-of-pocket costs incurred by the City and EDA in connection with the
establishment of the TIF District and the negotiation and preparation of the TIF Plan and this
Agreement, including the fees and expenses of their attorneys, financial consultants and other
consultants.
ARTICLE IV.
LEVITATION UPON ENCUMBRANCE; PROHIBITIONS
AGAINST ASSIGNMENT AND TRANSFER; SUBORDINATION
Section 4.1 Limitation Upon Encumbrance of Development. Prior to the issuance of
the Certificate of Completion for the Minimum Improvements, neither the Developer nor any
successor in interest to the Property or any part thereof shall engage in any financing or any
other transaction creating any mortgage or other encumbrance or lien upon the Property,
whether by express agreement or operation of law, or suffer any encumbrance or lien to be
made on or attached to the Property other than the mortgages, liens or encumbrances attached
for the purposes of obtaining funds to the extent necessary for acquiring and developing the
Property and constructing the Improvements and such additional funds, if any, in an amount
not to exceed the costs of developing the Development, without the prior written approval of
the EDA. The EDA shall not approve any Mortgage which does not contain terms which
conform to the terms of this Article IV of this Agreement.
Section 4.2 Representation as to Development. The Developer represents and agrees that
its undertakings pursuant to this Agreement are for the purpose of implementation of the
Development. The Developer further recognizes that, in view of the importance of the
Development to the general welfare of the EDA and the substantial financing and other public
7
4850-1029-3317.4
aids that have been made available by the EDA and the City for the purpose of making the
Development possible, the qualifications and identity of the Developer are of particular concern
to the EDA. The Developer further recognizes that it is because of such qualifications and
identity that the EDA is entering into this Agreement, and, in so doing, is further willing to rely
on the representations and undertakings of the Developer for the faithful performance of all
undertakings and covenants agreed by Developer to be performed.
Section 4.3 Prohibition Against Transfer of Prosy and Assignment of Agreement.
For the reasons set out in Section 4.2 of this Agreement, the Developer represents and agrees
that, prior to the issuance of the Certificate of Completion for the Minimum Improvements:
(a) Except only transfers to affiliated entities in which MG Eagan, LLC
or McGough Development, LLC has an ownership interest and/or management control
and transfers or encumbrances for the purpose of obtaining financing necessary to
enable the Developer or any successor in interest to the Property, or any part thereof, to
acquire and develop the Property and perform the Developer's obligations with respect
to the Development under this Agreement, and any other purpose authorized by this
Agreement, the Developer, except as so authorized, has not made or created, and will
not make or create, or suffer to be made or created, any total or partial sale, assignment,
conveyance, or any trust or power, or transfer in any other mode or form of or with
respect to this Agreement or the Development or any part thereof or any interest therein,
or any contract or agreement to do any of the same, without the prior written approval
of the EDA, which approval shall not be unreasonably withheld; and
(b) The EDA shall be entitled to require, except as otherwise provided in
this Agreement, as conditions to any such approval under this Section 4.3 that: (i) any
proposed transferee shall have the qualifications and financial responsibility, as
determined by the EDA, necessary and adequate to fulfill the obligations undertaken in
this Agreement by the Developer, or, in the event the transfer is of or relates to part of
the Development, such obligations to the extent that they relate to such part; (ii) any
proposed transferee, by instrument in writing satisfactory to the EDA and in form
recordable among the land records, shall for itself and its successors and assigns, and
specifically for the benefit of the EDA, have expressly assumed all of the obligations of
the Developer under this Agreement and agreed to be subject to such obligations,
restrictions and conditions or, in the event the transfer is of or relates to part of the
Development, such obligations, conditions, and restrictions to the extent that they relate
to such part; provided, that the fact that any transferee of, or any other successor in
interest whatsoever to, the Development or any part thereof, shall, for whatever reason,
not have assumed such obligations or agreed to do so, shall not, unless and only to the
extent otherwise specifically provided in this Agreement or agreed to in writing by the
EDA, relieve or except such transferee or successor from such obligations, conditions,
or restrictions, or deprive or limit the EDA of or with respect to any rights or remedies
or controls with respect to the Development or the construction of the Improvements; it
being the intent of this Section 4.3, together with other provisions of this Agreement,
that to the fullest extent permitted by law and equity and excepting only in the manner
4850-1029-3317.4
and to the extent specifically provided otherwise in the Agreement, no transfer of, or
change with respect to, ownership in the Development or any part thereof, or any interest
therein, however consummated or occurring, whether voluntary or involuntary, shall
operate, legally or practically, to deprive or limit the EDA, of any rights or remedies or
controls provided in or resulting from this Agreement with respect to the Development
and the construction of the Improvements that the EDA would have had if there been no
such transfer or change; and (iii) there shall be submitted to the EDA for review all
instruments and other legal documents involved in effecting transfers described herein,
and, if approved by the EDA, its approval shall be indicated to the Developer in writing.
In the absence of specific written agreement by the EDA to the contrary, no such
transfer or approval by the EDA thereof shall be deemed to relieve the Developer from any of
its obligations with respect thereto which are not expressly assumed by the transferee approved
by the EDA.
Section 4.4 Subordination and Modification for the Benefit of Mortgagees.
(a) In order to facilitate the obtaining of temporary or permanent financing for the
acquisition and development of the Property and construction or purchase of the Improvements
by the Developer or others, the EDA agrees to subordinate its rights under this Agreement to
the holder of any mortgage entered into for the purpose of obtaining such financing.
(b) In order to facilitate the obtaining of financing for the acquisition and
development of the Property and construction or purchase of the Improvements, the EDA
agrees that it shall agree to any reasonable modification of this Article IV or waiver of its rights
hereunder to accommodate the interests of the holder of the Mortgage, provided, however, that
the EDA determines, in its reasonable judgment, that any such modification(s) will adequately
protect the legitimate interests and security of the EDA with respect to the Development.
ARTICLE V.
TAX INCREMENT NOTE
Section 5.1 Issuance of Tax Increment Note. As reimbursement with interest for a
portion of the Developer Acquisition costs and Demolition and Soil Correction Costs paid by
the Developer and in contemplation of the completion of the Minimum Improvements the EDA
is issuing to the Developer the Tax Increment Note substantially in the form of Exhibit C. The
initial principal amount of the TIF Note shall be $3,800,000, but shall be adjusted to equal the
lesser of (i) $3,800,000 or (ii) $3,800,000 multiplied by a fraction, the numerator of which is
the number of gross square feet of the first office building included in the Improvements and
the denominator of which is 205,000. If additional office or hotel Improvements are
commenced as a second phase prior to April 1, 2025, the then outstanding principal amount
shall be increased by an amount equal to $3,800,000 multiplied by a fraction the numerator of
which equals the number of gross square feet of the second phase Improvements and the
denominator of which is 205,000; provided, however, that the resulting principal amount shall
not exceed $3,800,000 less the principal amount paid under the TIF Note prior to the date of
9
4850-1029-3317A
that adjustment. The TIF Note shall bear interest at the rate of 5.00% per annum, and shall be
payable in annual installment payments payable on February 1 of each year to and including
February 1, 2036, commencing on the February 1 following commencement of construction of
the Minimum Improvements (the "Commencement Date"). Annual installment payments shall
be applied first to interest (including overdue interest) and then to a reduction in outstanding
principal. Interest on the outstanding balance of the TIF Note shall accrue, from and after the
Commencement Date or most recent installment payment date and, if not paid on an installment
payment date for lack of available funds, shall not be added to principal. The TIF Note shall
mature on February 1, 2036.
The Developer covenants and agrees not to sell, transfer or convey the TIF Note
without the express written consent of the EDA; provided, however, that the Developer may,
without such consent, (i) pledge or grant a security interest in the TIF Note to a lender as
security for a loan or (ii) after 10 days' prior written notice to the EDA, transfer a TIF Note
to an institutional investor which has acknowledged in writing that (a) it is acquiring the TIF
Note for purposes of investment and not for resale, (b) it is not relying on any representations
or warranties of the EDA or City, express or implied, as to the availability or adequacy of
the tax increment to pay principal and interest or upon any funds of the City or EDA and (c)
all subsequent transfers shall meet such conditions. The Developer acknowledges that the
EDA makes no representations as to the adequacy of tax increments available to pay the TIF
Note.
The TIF Note shall be payable solely from the available tax increment to the extent
provided in Section 5.2 hereof and the EDA shall have no other liability on either TIF Note,
nor shall either TIF Note be payable out of any funds or properties of the EDA or City other
than tax increment from the Property.
Section 5.2 Tax Increment Available for TIF Notes. The annual installments due on the
TIF Notes shall be paid solely from the tax increment actually received by the EDA from
collections of ad valorem taxes from the Property, after deducting 25% of such increment for
allowable administrative expenses and other purposes. Available tax increment shall be
applied first to interest accrued (including overdue interest) and then to principal. No
installments of principal or interest on the TIF Note are required to be paid after February 1,
2036, regardless of whether the TIF Note has been paid in full. Neither the EDA nor City shall
pledge or appropriate any available tax increment from the Property to the payment of any
other obligation until the TIF Note has been paid in full.
ARTICLE VI.
EVENTS OF DEFAULT
Section 6.1 Events of Default Defined. The following shall be deemed Events of
Default under this Agreement and the term shall mean, whenever it is used in this Agreement,
unless the context otherwise provides, any one or more of the following events:
10
4850-1029-3317.4
(a) Failure by the Developer to observe and substantially perform any
material covenant, condition, obligation or agreement on its part to be observed or
performed hereunder, if such failure shall continue for a period of thirty (30) days after
written notice of such failure is given by the EDA or the City to the Developer;
provided, however, that if such failure is of such nature that it cannot with diligence be
cured within thirty (30) days, and provided further that within such thirty (30) -day period
the Developer has commenced such cure and thereafter diligently prosecutes such cure,
such thirty (30) -day period shall be extended for the period reasonably necessary to cure
such failure,
(b) If the Developer shall admit in writing its inability to pay its debts generally
as they become due, or shall file a petition in bankruptcy, or shall make an assignment for
the benefit of its creditors, or shall consent to the appointment of a receiver of itself or of
the whole or any substantial part of the Development;
(c) If the Developer shall file a petition under the federal bankruptcy laws;
:04
(d) If the Developer, on a petition in bankruptcy filed against it, be
adjudicated as bankrupt, or a court of competent jurisdiction shall enter an order of
decree appointing, without the consent of the Developer, a receiver of the Developer
or of the whole or substantially all of its property, or approve a petition filed against
the Developer seeking reorganization or arrangement of the Developer under the
federal bankruptcy laws, and such adjudication, order or decree shall not be vacated or
set aside or stayed within 120 days from the date of entry thereof.
Section 6.2 Remedies on Default. Whenever any Event of Default occurs, the EDA and
the City may, in addition to any other remedies or rights given the EDA and the City under this
Agreement, take any one or more of the following actions:
(a) suspend their performance under this Agreement until they receive
assurances from the Developer, deemed reasonably adequate by the EDA or the City,
that the Developer will cure its default and continue its performance under this
Agreement;
(b) cancel or rescind this Agreement;
(c) withhold the Certificate of Completion; or
(d) take whatever action at law or in equity may appear necessary or desirable
to the EDA or the City to enforce performance and observance of any obligation,
agreement, or covenant of the Developer under this Agreement.
Once a Certificate of Completion has been issued, Developer has no further obligations
hereunder, and no remedy shall affect the right of the Developer to receive payment under the
TIF Note.
11
4850-1029-3317,4
Section 6.3 No Remedy Exclusive. No remedy herein conferred upon or reserved to the
EDA is intended to be exclusive of any other available remedy or remedies, but each and every
such remedy shall be cumulative and shall be in addition to every other remedy given under
this Agreement or now or hereafter existing at law or in equity or by statute. No delay or
omission to exercise any right or power accruing upon any default shall impair any such right
or power or shall be construed to be a waiver thereof, but any such right and power may be
exercised from time to time and as often as may be deemed expedient. In order to entitle the
EDA or the Developer to exercise any remedy reserved to it, it shall not be necessary to give
notice, other than such notice as may be required in this Article VI.
Section 6.4 No Additional Waiver Implied by One Waiver. In the event any agreement
contained in this Agreement should be breached by any parry and thereafter waived by another
party, such waiver shall be limited to the particular breach so waived and shall not be deemed
to waive any other concurrent, previous or subsequent breach hereunder.
ARTICLE VII.
ADDITIONAL PROVISIONS
Section 7.1 Conflicts of Interest: Representatives Not Individually Liable. No EDA
officer who is authorized to take part in any manner in making this Agreement in his or her
official capacity shall voluntarily have a personal financial interest in this Agreement or benefit
financially therefrom. No member, official, or employee of the EDA shall be personally liable
to the Developer, or any successor in interest, in the event of any default or breach by the EDA
or for any amount which may become due to the Developer or successor or on any obligations
under the terms of this Agreement.
Section 7.2 Non -Discrimination. The provisions of Minnesota Statutes, Section 181.59,
which relate to civil rights and non-discrimination, shall be considered a part of this Agreement
and binding on the Developer as though fully set forth herein.
Section 7.3 Notice of Status and Conformance. At such time as all of the provisions of
this Agreement have been fully performed by the Developer, the EDA and the City shall, upon
not less than ten days prior written notice by Developer, execute, acknowledge and deliver
without charge to Developer or to any person designated by Developer a statement in writing
in recordable form certifying that this Agreement has been fully performed and the obligations
hereunder fully satisfied.
Section 7.4 Notices and Demands. Except as otherwise expressly provided in this
Agreement, a notice, demand or other communication under this Agreement by either party to
the other shall be sufficiently given or delivered if it is sent by mail, postage prepaid, return
receipt requested or delivered personally:
(a) As to the EDA:
Executive Director
12
4850-1029-3317.4
Eagan Economic Development Authority
3830 Pilot Knob Road
Eagan, MN 55122
(b) As to the City:
City of Eagan
3830 Pilot Knob Road
Eagan, MN 55122
(c) As to the Developer:
MG EAGAN, LLC
clo McGough Development, LLC
2737 Fairview Avenue North
St. Paul, MN 55113
Attn: Mark Fabel, Executive Vice President
with a copy to:
Brian S. McCool
Fredrikson & Byron P.A.
200 S. 6"' Street, Suite 4000
Minneapolis, MN 55402
or at such other address with respect to any parry as that party may, from time to time, designate
in writing and forward to the -others as provided in this Section 7.4.
Section 7.5 Counter arts. This Agreement may be simultaneously executed in any
number of counterparts, all of which shall constitute one and the same instrument.
IN WITNESS WHEREOF, the EDA and the City have caused this Agreement to be duly
executed in their naives and behalf and the Developer has caused this Agreement to be duly
executed as of the day and year first above written.
EAGAN ECONOMIC
DEVELOPMENT AUTHORITY
By
Mike Maguire, President
And By
David M. Osber& Executive
Director
13
4850-1029-3317.4
STATE OF MINNESOTA)
SS
COUNTY OF DAKOTA)
The foregoing instrument was acknowledged before me this day of 2017, by
Mike Maguire and David M. Osberg, the President and Executive Director of the Eagan Economic
Development Authority, a municipal corporation under the laws of the State of Minnesota, on
behalf of the Eagan Economic Development Authority.
STATE OF MINNESOTA)
SS
COUNTY OF DAKOTA)
Notary Public
CITY OF EAGAN
By
And By
Mike Maguire, Mayor
Christina M. Scipioni, City Clerk
The foregoing instrument was acknowledged before me this day of
2017, by Mike Maguire and Christina M. Scipioni, the Mayor and City Clerk of the City of
Eagan, a municipal corporation under the laws of the State of Minnesota, on behalf of the
corporation.
Notary Public
MG EAGAN, LLC
By
Thomas J. Mcdough, J ,
President
14
4850-1029-3317.4
STATE OF MINNESOTA)
SS
COUNTY OF PAK-eT-A)
The foregoing instrument was acknowledged before me this latly of ;2017, by Thomas J.
McGough, Jr., the President of MG EAGAN, LLC, a Minnesota limitedfiability company, on behalf
of the company.
:SH:AN�NON -M. SEIFERT o Public
PU=-mNNES=My 3'
z ane�iery31 09mission 8
Y
K
15
4850-1029-3317.4
EXHIBIT A
DESCRIPTION OF PROPERTY
The Property is located in Dakota County, Minnesota and is legally described as
follows:
Lot 1, Block 1, Blue GENTIAN Corporate Center
16
4850-1029-3317A
EXHIBIT B
CERTIFICATE OF COMPLETION
The undersigned hereby certifies that MG Eagan, LLC and or its successors or assigns have fully
and completely complied with the obligations of the Developer under that document entitled
"Second Amended and Restated Development Agreement," dated April 2017 between the
Eagan Economic Development Authority, the City of Eagan and MG Eagan, LLC, with respect to
construction of the Minimum Improvements in accordance with the approved construction
plans and is and are released and forever discharged from its and their obligations to construct
the Minimum Improvements under such above -referenced Development Agreement.
EAGAN ECONOMIC DEVELOPMENT
AUTHORITY
�: A
Executive Director
[Notary and Legal Description to be added so that instrument is in recordable form]
17
4850-1029-3317.4
EXHIBIT C
FORM OF TAX INCREMENT NOTE
$3,800,000
UNITED STATES OF AMERICA
STATE OF MINNESOTA
EAGAN ECONOMIC DEVELOPMENT AUTHORITY
TAX INCREMENT REVENUE NOTE
The Eagan Economic Development Authority (the "EDA"), Eagan, Minnesota, for
value received, promises to pay, but solely from the source, to the extent and in the manner
hereinafter provided, to MG Eagan, LLC (the "Owner") the lesser of (a) principal sum of
($3,800,000), or (b) the Adjusted Principal Amount determined as described below, in annual
installments due on the first February 1 following the Commencement Date described below
and on each February 1 thereafter up to and including February 1, 2036 (each being a
"Scheduled Payment Date"), together with interest on the outstanding and unpaid principal
balance of this Note at the rate of 5.00% per annum which accrued during the previous 12 -
month period. Installment payments shall be applied first to interest (including overdue
interest) and then to a reduction of outstanding principal. Interest on the outstanding principal
balance of this Note shall accrue from the Commencement Date and shall not be added to the
principal amount on each February 1 installment payment date if not paid on such date. Each
payment on this Note is payable in any coin or currency of the United States of America which
on the date of such payment is legal tender for public and private debts and shall be made by
check or draft made payable to the Owner and mailed to the Owner at the postal address within
the United States designated from time to time by the Owner. The "Commencement Date" is
the date the Owner begins construction of the Minimum Improvements, consisting of an office
building of at least 100,000 square feet pursuant to the Development Agreement described
below. The EDA shall have no obligation to pay principal or interest on this Note if the
Commencement Date does not occur on or prior to April 1, 2020. As provided in the
Development Agreement, the "Adjusted Principal Amount" of this Note equals $3,800,000
multiplied by a fraction, the numerator of which equals the number of gross square feet of
initial office building included in the Improvements, as defined in the Development
Agreement, and the denominator of which is 205,000, and shall be further adjusted in the event
a second phase of Improvements is commenced prior to April 1, 2025, as provided in section
5.1 of the Development Agreement.
This Note is subject to prepayment on any Scheduled Payment Date at the option of the
EDA, in whole or in part, upon payment to the Owner of the principal amount of the Note to
be prepaid, without premium or penalty.
EXCEPT AS PERMITTED BY THE DEVELOPMENT AGREEMENT, THIS NOTE
IS TRANSFERABLE ONLY WITH THE CONSENT OF THE EDA AND ONLY UPON
1s
4850-1429-3377.4
THE REGISTER OF THE EDA TREASURER, AS REGISTRAR, BY THE OWNER
HEREOF OR BY ITS DULY AUTHORIZED ATTORNEY.
This Note is a special and limited obligation and not a general obligation of the EDA,
which has been issued by the EDA pursuant to and in full conformity with the Constitution and
laws of the State of Minnesota, including Minnesota Statutes, Section 469.178, subdivision 4,
to aid in financing a "project", as therein defined, of the EDA consisting generally of
reimbursing certain costs incurred and to be incurred and paid prior to April 28, 2017 within
and for the benefit of its Tax Increment Financing District No. 2-5. This Note is issued pursuant
to a Second Amended and Restated Development Agreement dated as of April 18, 2017
between the EDA and the Owner (the "Development Agreement").
THIS NOTE IS NOT PAYABLE OUT OF ANY FUNDS OR PROPERTIES OTHER
THAN AVAILABLE TAX INCREMENT, AS DEFINED BELOW.
The principal of and interest on this Note is payable solely from and only to the extent
of Available Tax Increment received by the EDA as of each Scheduled Payment Date which
has not previously been applied to payment of this Note. For purposes of this Note, the term
"Available Tax Increment" means 75% of the amounts which would have been received as tax
increment in the year preceding a Scheduled Payment Date from collections of ad valorem
taxes from the Property (as defined in the Development Agreement) in the EDA' s Tax
Increment Financing District No. 2-5.
The EDA shall pay to the Owner on each Scheduled Payment Date all Available Tax
Increment on that date until such time as all accrued interest and outstanding principal under
this Note has been paid in full. To the extent that the EDA is unable to pay the total principal
and interest due on this Note at or prior to any February 1 installment payment date hereof
as a result of its having received as of such date insufficient Available Tax Increment, such
failure shall not constitute a default under this Note, but such unpaid interest or principal
shall remain payable at the next February 1 installment payment date. The EDA shall have
no obligation to pay the principal of or interest on this Note after February 1, 2036.
This Note shall not be payable from or constitute a charge upon any funds of the EDA,
and the EDA shall not be subject to any liability hereon or be deemed to have obligated itself
to pay hereon from any funds except the Available Tax Increment, and then only to the extent
and in the manner herein specified.
The Owner shall never have or be deemed to have the right to compel any exercise of
any taxing power of the EDA or of any other public body, and neither the EDA nor any council
member, officer, employee or agent of the EDA, nor any person executing or registering this
Note shall be personally liable hereon by reason of the issuance or registration hereof or
otherwise.
IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions, and things
required by the Constitution and laws of the State of Minnesota to be done, to have happened,
and to be performed precedent to and in the issuance of this Note have been done, have
19
4850-1029-3317A
happened, and have been performed in regular and due form, time, and manner as required by
law; and that this Note, together with all other indebtedness of the EDA outstanding on the date
hereof and on the date of its actual issuance and delivery, does not cause the indebtedness of
the EDA to exceed any constitutional or statutory limitation.
Ki;
4950-1029-3317.4
IN WITNESS WHEREOF, the EDA has caused this Note to be executed by the manual
signatures of the President and Executive Director of the EDA, all as of the _ day of April, 2017.
ATTEST -
EAGAN ECONOMIC DEVELOPMENT
AUTHORITY
(Form of Transfer)
President
For value received, the undersigned Owner does hereby assign and transfer the
foregoing Note to the named Assignee, and the undersigned Treasurer of the Eagan Economic
Development Authority, as registrar, hereby certifies that the foregoing Note has been
transferred and registered on the bond register in the name of such Assignee.
Signature of Date of
Name of Assioee Suture of Owner Executive Director Transfer on
Register
21
4650-1029-3317.4