04/09/2012 - 7502I•
� CITY COUNCIL MEETING OF APRIL 9, 2012
CfiY OF
FRIDLEY
The City of Fridley will not discriminate against or harass anyone in the admission or access to, or
treatment, or employment in its services, programs, or activities because of race, color, creed, religion,
national origin, sex, disability, age, marital status, sexual orientation or status with regard to public
assistance. Upon request, accommodation will be provided to allow individuals with disabilities to
participate in any of Fridley's services, programs, and activities. Hearing impaired persons who need an
interpreter or other persons with disabilities who require auxiliary aids should contact Roberta Collins at
572-3500. (TTD/572-3534)
PLEDGE OF ALLEGIANCE.
LOCAL BOARD OF APPEAL AND EQUALIZATION MEETING
CITY COUNCIL MEETING
APPROVAL OF PROPOSED CONSENT AGENDA:
APPROVAL OF MINUTES:
City Council Meeting of March 26, 2012
NEW BUSINESS:
1. Receive the Minutes from the Planning
Commission Meeting of March 21, 2012 ............................................................ 1- 4
2. Special Use Permit Request, SP #12-01,
by Signcrafters, for St. Philip's Lutheran
Church, to Allow an Electronic Changeable
Message sign as Part of a New Free-Standing
Sign, Generaily Located at 6180 Highway 65
(Ward 2);
and
Resolution Approving Special Use Permit,
SP #12-01, for Signcrafters, on Behalf of
St. Philip's Lutheran Church, the Property
Owner of 6180 Highway 65 ............................................................................... 5- 11
FRIDLEY CITY COUNCIL MEETING OF APRIL 9. 2012 PAGE 2
APPROVAL OF PROPOSED CONSENT AGENDA:
NEW BUSINESS (CONTINUED):
3. Resolution Approving and Authorizing Signing
an Agreement with Police Officers of the City of
Fridley Police Department for the Years 2012
and2013 ........................................................................................................ 12 - 41
4. Approve 2012-2013 Liquor License Renewals ................................................... 42 - 44
5. Appointment — Police Officer .............................................................................. 45
6. Claims (154527 — 15480) .................................................................................. 46 - 58
7. Licenses ........................................................................................................ 59 - 63
ADOPTION OF AGENDA:
OPEN FORUM, VISITORS: Consideration of items not on Agenda — 15 minutes.
PUBLIC HEARING:
8. Consideration of the Creation of TIF District #20
and Hazardous Substance Subdistrict (HSS) #20A ........................................... 64 - 69
FRIDLEY CITY COUNCIL MEETING OF APRIL 9. 2012 PAGE 3
NEW BUSINESS:
9. Resolution Modifying the Redevelopment Plan for
Redevelopment Project No. 1 and the Tax Increment
Financing Plans for Tax lncrement Financing Districts
Nos. 6-7, 9, 11-13 and 16-19, to Reflect Increased
Project Costs and increased Bonding Authority Within
Redevelopment Project No. 1, Creating Tax Increment
Financing District No. 20 and Adopting a Tax Increment
Financing Plan Relating Thereto and Creating Hazardous
Substance Subdistrict No. 20A and the Adoption of a Tax
Increment Financin Plan Thereto
g....................................................................
10. Resolution Approving and Authorizing Execution of the
Amended and Restated Liquor Store Lease Between the
70 - 112
City of Fridley and ZCOF TL Fridley, LLC .......................................................... 113 - 119
11. Informal Status Report ....................................................................................... 120
ADJOURN.
(Legal Notice)
City of Fridley
Notice of Board of Appeal and Equalization
Notice is hereby given, that the Board of Appeai and Equalization of the City of Fxidley,
County of Anoka, Minnesota, will meet at the Fridley Municipal Center located at 6431
University Avenue NE, Fridley, Minnesota in the City Council Chambers at 7:00 p.m., on
Monday, April 9, 2012. The purpose of this meeting is to determine whether tasable property in
the jurisdiction has been properly valued and classified by the assessor, and to determine whether
corrections need to be made.
If you believe the value ox classification of your property is incorrect, please contact the
Assessor s Office to discuss your concerns. If you are still not satisfied with the valuation or
classification after discussing it with the Assessor, you may appear before the Local Board of
Appeal and Equalization. The Board shall review the valuation, classification, or both if
necessazy, and shall correct as needed. Generally, an appeazance before your local Board is
required by law before an appeal can be taken to the County Board of Appeal and Equalization.
Given under by hand this 24th day of January, 2�12.
!s/ Debra A. Skogen, City Clerk
(Published in the Fridley SunFocus March 29 and April 2, 2012)
CITY COUNCIL MEETING
CITY OF FRIDLEY
MARCH 26, 2012
The City Council meeting for the City of Fridley was called to order by Mayor Lund at 730 p.m.
ROLL CALL:
MEMBERS PRESENT: Mayor Lund
Councilmember-at-Large Barnette
Councilmember Saeflce
Councilmember Varichak
Councilmember Bolkcom
OTHERS PRESENT: William Burns, City Manager
Darcy Erickson, City Attorney
Jim Kosluchar, Public Works Director
Scott Hickok, Community Development Director
Paul Slesar, 44 Lock Lake Road
Larry and Cathleen Korzenowski, 529 Janesville St NE
Pam Reynolds, 1241 Norton Avenue
PRESENTATION:
2011 City Engineers Association of Minnesota (CEAM), Project of the Year Award for the
North Innsbruck, Water Main Rehabilitation Project
Layne Otteson, Assistant Public Works Director, said this was a Cooperative Project to install
Class N Structural CIPP Water Main between Fridley, Golden Valley and Hutchinson. The
design was by SEH and the contractor was Fer-Pal from Taylor, Michigan. The City Engineer's
Association of Minnesota Professional Association promoted Yhe interchange of helpful ideas
and information (technical, environmental, legal, and ethical). Everyone worked constructively
toward the advancement and improvement of the engineering profession to seek ways and means
by which we may be more useful and efficient to those whom we serve.
Mr. Otteson said the problem in Golden Valley were five breaks each in 10 years for two
streets. Fridley had five breaks in 15 years on one street. Hutchinson had seven breaks in seven
years and four in 2009. All showed significant failure in certain locations. Fridley and
Hutchinson had concrete roadways (increased restoration cost for open cut) and Yhere were
congested private utility corridors in all cities. The fiber optic corridor, which houses data
between two General Mills facilities, makes excavation very tough. There was high traffic on all
streets, and it was important to maintain safe travel through these areas.
Mr. Otteson said the cities researched other trenchless methods (cement lining, pipe bursting,
etc.) and ultimately chose to implement a product that uses a standalone Class IV structural CIPP
FRIDLEY CITY COUNCIL MEETING OF MARCH 26. 2012 PAGE 2
liner. We felt it was the least intrusive and provided the best long-term solution to our
infrastructure needs.
Mr. Otteson said once they knew which product to use, they had to ]ook at qualified contractors.
This type of rehabilitation required highly skilled contractors for its installation. Currently, only
a handful of contractors throughout the world are able to install this type of product. Because of
this, high project mobilization costs were imminent. All three cities were working under
tightened budget constraints and there was a real push to do more with less. The cities decided
to complete the project under a cooperative project agreement and bid all projects under one bid
tab. All cities had experience with CPAs in the past and all felt comfortable working with each
other due to networking opportunities with CEAM, APWA, and AWWA. Using the CPA tool
helped to incxease the total quantity of lining to be performed in the area, bringing down the
respective mobilization costs for each City. The CPA tool also gave the contractor an insight
that there may be a future market for new business in this area. This forced them to keep their
prices low in hopes of opening up a new hub for future water main rehabilitation work in central
Minnesota.
Mr. Otteson said the cities worked on writing the bid documents to establish projects that fit for
each city. They had to have a consensus on design, construction practices, and Cesting methods.
They also had to meet each individual city's requirements for traffic control, turf establishment,
general restoration, and temporary water services. Each city wanted the ability to opt out of the
project for any reason before the contract was issued. An upfront payment from each city to the
Contracting Authority for 95% of the engineer's estimated construction amount needed to be
received before construction started. There were no issues presented by any cities.
Mr. Otteson said it was a challenge getting each city's management, council, and attorneys to
agree on one CPA document. It was also a challenge getting approvals from each city in a
timely manner prior to the `Contracting Authority" taking the overall project to Council for bid.
The cities had to work together to remain organized and plan well to avoid project delays. To
accomplish this SHE, provided project-related material for City Council packets for all three
Cities and were ready for each city. SEH tried to use the same bid-unit pay items across all of
the cities to balance the cost among the three cities. For example; 12-inch CIPP water main
lining was one line item that combined the pipe length for all three Cities. However, mobilization
costs were difficult to standardize because the project locations were miles apart. Items like
mobilization, traffie control, and temporary water required contractors to bid on separate lump
sum pay items for each City involved.
Mr. Otteson said there is a line item breakdown for work that occurred in each City. The work
on Boone Avenue was completed in 2010. All other portions dropped out for the Spring 201 I
bid. Prices were higher because the project was pushed in late season with high LD's if not
completed on time. Brunswick Avenue had a change order diiven work. We had three breaks
over this section while Fer-Pal was in town. The change order allowed us to rehabilitate pipe
under a country road that kept breaking, as well as install valves that maintained service to a
local Dialysis Clinic that kept being shut off. The total approximate savings was 10% less than
the cost of rehabilitation using the open-cut method of pipe rehabilitation.
FRIDLEY CTTY COU1�iCIL MEETING OF MARCH 26 2012 PAGE 3
Mr. Otteson reviewed the water main wark that was done:
• Install a temporary water to disrupted homes
• Dig pits
• Video and clean the pipe
• Install the liner inside the existing host pipe
• Expand the liner and cure with hot water
• Flush the new liner and test
• Perform all reconnections and backfill pits
• Remove temporazy water and perform restoration
Mr. Otteson said CIPP technology offers significant sustainable environmental benefits
compared to the open-cut rehabilitation method. CIPP reduces greenhouse gas emissions needed
to rehabilitate trunk water main pipe using open-cut method by 84%. An 84% reduction
amounts to 378 tons of carbon dioxide for each mile of trunk water main pipe rehabilitated using
CIPP. In other words, this is a reduction of carbon dioxide equal to that produced by 24,600
gallons of gasoline or 196,570 pounds of coal for each mile of trunk water main pipe.
Mr. Otteson said these savings will be realized in the reduced boulevard impacts as there will be
no curb stop repairs or service pipe replacement required (reduces boulevard restoration). There
will be less pavement damage, as a11 of the Cities had to considez the political fallout (namely
property-owner complaints) from damaging good pavement. There will also be less water
service disturbances, and this particular CIPP application used robotically controlled cutting
devices to restore flow to water service laterals. The project had minimal material waste by
creating small excavaYion footprints and experienced reduced trucking costs as less materials
were necessary for construction and it was easy to transport without many trucks.
Mr. Otteson said on Boone Avenue, in a commercial business area where companies relied both
on daily access and water usage to conduct their business, the city did not receive any complaints
ducing construction. Safety was maintained working on two-way traffic along TH15(Main Street
in Hutchinson and secured excavations with flashers prevented accidental fall in. The restoration
left very litUe evidence that there was ever work being done in the area.
Mr. Otteson said they learned they should bid early to get better bid prices. Also if you manage
a cooperative project, use LD's to ensure that work is finished in one City prior to commencing
in another. This helps to reduce construction durations and promote clean/efficient projects. It is
also important to plan ahead to make sure there is ample time to complete the wark in all cities
involved. The contractor will want to limit risk of LD's so give them plenty of time in the
construction season to get this work done.
APPROVAL OF PROPOSED CONSENT AGENDA:
APPROVAL OF MINUTES:
City Council Meeting of March 12, 2012.
FRIDLEY CITY COUNCIL MEETING OF MARCH 26. 2012 PAGE 4
Councilmember Bolkcom asked for the following correcCions:
Page 8, third paragraph Kevin BohPs address should be "7399"
Page 8, fourth paragraph Darcy Erickson stated you may prorate in the year of
closing paying those special assessments and anything
going forward may sometimes be picked up by the
purchaser. It is an item for negotiation between buyer and
seller.
Page 8, last paragraph Mr. Kosluchar replied, basically there are dischazges that
violate the City ordinance (which only permits discharge
outside of the City right-of-way). If someone whished not
to connect, they basically would have to cut their
discharge pipe at least 10 feet back from the back of the
curb. The pipe would be in their yard hopefully
infiltrating. In addition, the City does have a nuisance
ordinance. If there is some discharge creating icing
conditions on the roadway, it is considered a nuisance and
the property owner has to deal with it. These are the
requirements the property owners would have to deal with.
Page 9, last pazagraph
APPROVED AS AMENDED.
OLD BUSINESS:
Wendy Hanson said she has an irrigation system and was
wondering what would happen . . ..
1. Second Reading of an Ordinance Amending the Fridley City Code, Chapter 1,
Legislative Body, Pertaining to ward and Precinct Boundaries.
William Burns, City Manager, said that since the population changes for Fridley's three wards
did not change substantially, tbe wazd boundazies remain the same. The changes in state
legislative district boundaries; however, dictate that we consolidate precincts four and five in
Wazd 2. Staff recommends Council's approval of the second and final reading of this ordinance.
WAIVED THE READING OF THE ORDINANCE AND ADOPTED ORDINANCE NO.
1294 ON SECOND READING AND ORDERED PUBLICATION.
NEW BUSINESS:
2. Resolution Entering into an Agreement with the Minnesota Department of
Transportation for Preliminary Engineering for Safe Routes to School Project No.
ST2011-21 and MnDOT Agency Agreement No. 00516.
FRIDLEY CITY COUNCIL MEETING OF MARCH 26, 2012 PAGE 5
William Burns, City Manager, said this resolution is in support of an agreement w�th MnDOT
regarding our Safe Routes to School Grant. Last year, the City and School District #14 applied
for and received $108,840 in federal funding for pedestrian safety improvements in the vicinity
of Hayes and Stevenson Elementary Schools and the Fridley Middle School. This resolution
allows the City to conduct the preliminary engineering for this work under a"Delegated Contract
Process" as required for projects receiving federal aid. Under this process, Fridley will work
directly with MnDOT rather than the Federal Highway Administration. The agreement also
provides that the City will be reimbursed for up to $14,800 in preliminary engineering cosYs.
Staffrecommends CounciPs approval.
THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA AND PLACED ON
THE REGULAR AGENDA.
3. Resolution Authorizing application for DNR Local Trail Connection grant Funds for
Uaity Hospital Health Walk to rice Creek Regional Trail.
William Burns, City Manager, said that last year, through the use of SHIP grant money for grant
writing, we applied for two DNR local trail grants. Although we scored well, we were not
funded. The grants, along with local matching money, would have been used to build
bike/walkways in the vicinity of Fridley High School and between Unity Hospital's wellness
walkway and the Rice Creek Regional Trail.
Dr. Burns said that due to other potential commitments for local matches on Main Street, we are
recommending that tlus year's DNR grant application be targeted at bikeway/walkway
improvements between Unity Hospital and the Rice Creek Regional TraiL The $101,128 project
would enable someone to walk or bike from Unity Hospital's "Wellness Walk" south on Ballet
Boulevard to Madsen Pazk. From there they would, with the aid of a push-button pedestrian
cross walk, cross 73rd Avenue to an existing City trail on the Target Distribution site. They
would joumey from there to the Rice Creek Regional Trail in Locke Park. Staff has hired the
consultant we used last year to tweak the grant applications. The local match on the Unity-Rice
Creek Trail application is esfimated at $25,000. Staff would use MSAS money to fund the City
share. Staff recommends Council's approval of the resolution.
THIS ITEM WAS REMOVED FROM THE CQNSENT AGENDA AND PLACED ON
THE REGULAR AGENDA.
4. Approve Master Services Agreement behveen the City of Fridley and Nehvork Medics,
Inc.
William Burns, City Manager, said the Police Department has had a service agreement with
Network Medics of Minneapolis for repair and maintenance of its sixteen laptop computers since
2008. The sixteen computers serve as mobile data terminals in squads and are used primarily by
police patrol. They are, however, also used by detectives, administrators, community service
officers and reserve officers for a wide variety of law enfoicement purposes. These computers
are used 24 hours per day, 7 days per week. The annual fee for this 24/7 service has been and
will continue to be $21,875 per year. Staff recommends Council's approval.
FRIDLEY CITY COUNCIL MEETING OF MARCH 26. 2012 PAGE 6
APPROVED.
5. Approve 2012 Reappointments to CiTy Commissions.
William Burns, City Manager, said that the following people have asked to be reappointed to
commission terms that expire on April 1, 2012:
Dave Kondrick Chair of Planning Commission
Brad Sielaff Appeals Commission
Richard Svanda EQEC
Dave Kondrick Parks and Recreation Commission
Marcy Sibell Parks and Recreation Commission
William Holm HRA (Term Expires: June 9, 2017)
Dr. Burns said that all terms are three year terms with the exception of the HRA term, which is
Por five years. Staff recommends Council's approval.
APPROVED.
5a. Appointment — Appraiser.
Dr. Burns said following an evaluation of fourteen candidates for the appraiser position vacated
by Shawn Halligan in January, staff recommends the appointment of Patrick Maghrak. Patrick
has a BS Degree from the University of Minnesota's Carlson School of Management. He also
holds licenses as a Certified Minnesota Assessor, Real Property Appraiser and Residential Real
Estate Sales. He has been employed by the City of Coon Rapids since 2004 where he served as
Appraiser II. He also works as a staff appraiser for Equity Appraisal Services and has been
working for the City of Fridley as an independent contractor for the past two months. Staff has
been very pleased with his work and recommends Council's approval of his appointment.
I�� � • �PI�TI]�
6. Claims (154389 —154526)
APPROVED.
7. Licenses
APPROVED THE I.ICENSES AS SUBMITTED AND AS ON FILE.
APPROVAL OF CONSENT AGENDA:
Councilmember Bolkcom asked for Item Nos. 2 and 3 to be removed from the Consent
Agenda.
FRIDLEY CITY COUNCIL MEETING OF MARCH 26, 2012 PAGE 7
MOT10N by Councilmember Bolkcom to approve the Consent Agenda with the removal of
Item Nos. 2 and 3. Seconded by Councilmember Saefke.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
ADOPTION OF THE AGENDA:
MOTION by Councilmember Barnette to adopt the Agenda with the addition of Item Nos. 2 and
3. Seconded by Councilmember Varichak.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
OPEN FORUM VISITORS:
Pam Reynolds, 1241 Norton Avenue, discussed recent happenings with Springbrook Nature
Center. Her information was found from documents acchived on the City's website. In
November, 1972, a resolution was passed to purchase the Springbrook Nature Center. The City
went to the voters to decide what the use of the land should be; a golf course or nature center.
There was a 78% voter participation and a nature center was born. A group was formed known
as the Springbrook Nature Center Foundation. In 1975 the Foundation entered into a lease
agreement for the nature center and also developed plans to include walkways and tours. They
ensured that the Springbrook Nature Center would not be a burden on taxpayers. This lease was
for five yeazs.
Ms. Reynolds said in 1975, Council was asked to approve a sign for the area but they did not
decide on what name should be on the sign. After this was referred to Parks and Recreation,
Council decided on Springbrook Nature Center at North Park. Only the faciliry was being
named and this was not an effort to change the name of the park. In 1978, sewer and water came
in from the City of Coon Rapids and the Foundation paid for those services. In 1979, a
resolution was passed to build a visitors center. It was brought to the City to use the land as golf
course again and was put back on the ballot to ask voters what to use land for. The Foundation
said tax payers would not foot the bill but many additional requests have been granted
throughout the years.
Ms. Reynolds said recent developments for the Natuce Center include building a theater and a
bookstore. The last attempt to build a recreation center was denied by 94% of voters. A 2010
Council meeting asked the question of when Council would take official action to require all
money upfront rather than a phased plan. A MOU was discussed but never produced. Council
proceeded with the issue without the official action necessary. The Foundation has control of the
nature center but Council says the Foundation should run decisions througb the Council.
Ms. Reynolds said in 1974 and 2004, Fridley chose to have North Park remain a green space.
She could not find where the name was ever changed to Springbrook Nature Center. This is not
the desire of the majority of Fridley residents. There are many questions as to why Fridley is
FRIDLEY CITY COUNCIL MEETING OF MARCH 26, 2012 PAGE 8
responsible to provide special use for surrounding communities. Springbrook Nature Center
should be maintained in the same fashion as other parks owned by the City, for the use of
residents and protected from the developmentthatis being proposed.
Ms. Reynolds said the Nature Center is open for biking, walking, running, and other activities.
The use of the Nature Centec needs to be accomplished tluough a ballot with two questions; do
residents wish to see North Park continue under the special tax levy and if they wish the facility
to be used as it was deemed when it was built. If a petition is needed to put these questions on
the ballot, she will take on that task. Time is of the essence to secure a spot on the 2012 ballot.
She also asked for an answer to her question as to what the official name of the park is.
Mayor Lund said he had a lot of things to say about her comments and noted that it would have
been moce appropriate to submit her comments by email. He felt that she was using Open Forum
as a campaign for the petition she plans to take to voters. This has been done in the past when
the Foundatio� asked for a time period where they could bring questions to the voters, like in
2004. There has never been a complete census from voters for or against a golf course. Vaters
clearly spoke in 1974 and 2004.
Mayor Lund noted Foundation members are volunteers trying to do something good. They raise
a significant amount of money every yeaz for those less fortunate and give quite a few grants
themselves to schools to benefit the progxams at Springbrook Nature Center. It is unfortunate
this issue comes up. He will look up the official designated name change and get back to Ms.
Reynolds.
Bert Martinez, 7786 Beach Street NE, said he has had a situation over the last 20 years and
thought the s�lution was fixed but it keeps coming back. He wants to stop his shop from floating
in water. There is damage to equipment, carpet, furniture just to name a few. This year he
barely got done putting things back from water damage only to have another flood. There is no
rhyme or reason to this water pxoblem and he has talked to Jim Kosluchaz to try to learn what is
wrong.
Mayor Lund agreed Mr. Martinez has a valid concem. Mr. Kosluchaz will look at the issue and
see if something can be engineered differently. The problem can be solved today but it is not a
failsafe solution; there is no guarantee our system can handle all weather situations. The current
system was overwhelmed but the rain. All storm sewers end up in rivers and creeks and they get
overwhelmed until the water level goes down.
Mayor Lund responded to the letter Mr. Martinez submitted It stated in the letter that this is'sue
was brought to the Mayor and he never heard anything back. Mayor noted that staff has
responded to his concerns. A gate was lowered and worked effectively for three years. He
thought the issue was taken care of. When the City bad flooding issues last year he did not hear
from Mr. Martinez so he thought it was resolved. Staff will look at the problem to see if they can
help. Staff will mitigate and check with engineering to figure out what is wrong.
Councilmember Bolkcom said this area is not part of the new water shed district but part of
Coon Creek so this may be a new project opportunity.
FRIDLEY CITY COUNCIL MEETING OF MARCH 26, 2012 PAGE 9
Jim Kosluc6ar said a survey has been done and he would get back to Mr. Martinez in about six
weeks.
MOTION by Councilmember Bolkcom to move into record a letter from Mr. Martinez.
Seconded by Councilmember Saeflce.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
Don Anderson asked what the rules were for mopeds on city streets.
Councilmember Saetke thought it was okay to operate the moped under a regular license if the
moped was under 49 cc's. He knew the moped could not be operated on a bike ]ane and that he
should drive in the regular traffic lane on city streets, where speed limit is 30 miles per hour.
Mayor Lund said he should check with the Police Department for the proper rules for operating
mopeds on city streets.
NEW BUSINESS:
8. Resolution Approving Adoption of the East River Road Corridor Study as Prepared by
Kimley-Horn and Associated, Inc.
Jim Kordiak, Anoka County Commissioner, introduced the East River Corridor Study and the
representatives from Kimley-Horn.
Councilmember Bolkcom asked what the next step would be if the resolution was approved.
She asked if Council did not approve of everything or had concerns, who should be contacted.
She also asked who the people should respond to if they had questions ar concerns.
Commissioner Kordiak said he has not had a chance to read the resolution. Any changes and
desires of the Council and the residents of Fridiey are important.
Councilmember Bolkcom noted that many people do not think about moving traffic like the
County does which is a concem. We have to plan ahead, but she thinks the County Engineers
want to move traffic quicker than Fcidley. It is clear in the studies that have taken place that
people are concemed about some of those things. She is not sure she agrees with everything in
the resolution_
Scott Hickok, Community Development DirectoT, said both agencies have interests related to
East River Road and how it comes together. There will be discussion to make both interests
match to cxeate a plan to guide the future of East River Road.
Datt Coylel, Kimley-Horn Traffic Engineer, said there were goals developed with the key idea of
not widening East River Road. They found out in the study that they could avoid having to
widen the road to six lanes. He reviewed the following Implementatian Costs:
FRIDLEY CITY COUNCIL MEETING OF MARCH 26, 2012 PAGE 10
Kate Garwood, Anoka County Highway Department Multi Modal Transportation Planner, said
the next steps will be for the cities to approve the resolution, as well as the County Public Works
Committee and the County Board. Future steps include to monitor changes in corridor
conditions, capitalize on opportunities as they azise, apply for funding as it is available and work
on short-term goals in support of ]ong-term recommendations.
Ms. Garwood said the main message that was taken away from the meetings was Fcidley did not
want East River Road widened. That message was received and it comes with some
compromises. The easiest route in this project is to widen the road, but we plan to keep the road
like a residential-type neighborhood The freight traffic on this road is significant. Trucks are
loud and it was reported by some residents that the trucks shake their homes. Truck freight also
takes up space and causes congestion. They plan to try to establish a freight corridor on
University Avenue, Highway 252 or Highway 65. They are trying to figure out how to move
truck freight traffic in a different way. Funding is not something that comes very quickly; it
takes time to get funding. From the time we have a plan to the time we have a shovel in the
ground takes a minimum of seven years. Things will be completed as they make sense. 5maller
projects may be completed to take advantage of funds as they become available. We need to
agree on a plan and a concept but not all the details. Coon Rapids adopted a plan as of Tuesday
last week. The County will take this to Public Works on April 2 and it would go to the County
Board on April 10 to adopt the resolution.
Matthew Parent, Anoka County Highway Department Planner, said they reviewed the map and
specifications that were distributed to Council.
Councilmember Barnette asked about the Safe Route to School project regarding Stevenson
Elementary School and how this project would work with that effort.
Mr. Hickok said there has been discussion eazly on about a path around Stevenson Elementary.
Through these discussions, staff learned a lot and did not know students at Stevenson could not
cross East River Road. If they lived across this road they are bused to school. Safe Routes to
School aze to enter school through the neighborhood to the north. They looked at a connection to
the south as well so there would be a more direct route.
Councilmember Bolkcom asked who would do the monitoring.
FRIDLEY CITY COUNCIL MEETING OF MARCH 26. 2012 PAGE 11
Ms. Garwood said those issues were spoken to and County roads would be the County's
responsibility. Currently this is done on an annual basis and reported back to the cities.
Councilmember Bolkcom asked if the area of East River Road and Mississippi Street at the
traffic ligl�t has been looked at. There could be a cleanup of signs in that area as she counted 20
signs in a three-block area. Also on February 26, she asked if any of this area would be included
in the new watershed area.
Jim Kosluchar, Public Works Director, answered no; that would be the Coon Creek Watershed
Area.
Councilmember Bolkcom said where it talks about the turning phases undex 85`h Avenue, she
did not understand it. At some point, she would like an explanation.
Ms. Garwood said that they could create a diagram so it is easier to understand.
Councilmember Bolkcom was concerned about making u-turns and realizes that afier a while
people will get used to it. She noted this project is different than Coon Rapids because this is a
residential corridor. This is drastic change. On section 6.4 regarding the right of way and the
easement, she noted it talked about noise wall costs. She had not heazd of a noise wall being
installed.
Ms. Garwood said she would look at that section. A noise wall is needed if federal funds are
used and if the capacity of the road is expanded. She will research and get back to the Council.
Councilmember Bolkcom questioned why the traffic numbers were higher on East River Road
than University.
Ms. Garwood answered thaC the gowth communities in Anoka County are tQ Yhe north and west
and Fridley is south. A driver will take the quickest path away fram Highway ] 0 and the
quickest path into Minneapolis is East River Road.
Councilmember Bolkcom noted most of the studies and census are information from 2000 and
this information will need to be updated as time goes on.
Ms. Garwood answered yes; each time a new segment is started that information will need to be
reviewed.
Mayor Lund asked about a freight study and if there was funding available or a time line
established for a freight study.
Ms. Garwood said that the budget for this yeaz has something in it regarding &•eight bottlenecks
and to find funding for a freight corridor study. Conversations have been held with MnDOT.
Mayor Lund asked what type of green space or decorative fea[ure would be in the median
strips.
FRIDLEY CITY COUNCIL MEETING OF MARCH 26. 2012 PAGE 12
Ms. Garwood said to eliminate number of signs, there would be a longer median allowing a
better opportuniry for landscaping. OpUons include decorative shrubs or pavement something
attractive.
Mayor Lund noted that the elimination of crossings would increase the speed and move traffic
along faster.
Ms. Garwood said they hope to not increase the speed. They are recommending leaving the
speed limit as it is today. MnDOT controls the speed limit on all roads in the state.
Mayor Lund was also concerned with u-tums; it will be an education process and could be a
safety issue. The site line is not the best so the engineers need to look at this closely.
Ms. Garwood said the engineers aze efficient with site lines and aware of busses' and trucks'
turning radius. All of these things will be looked at very closely.
Councilmember Bolkcom asked on item 2.5 if a breakdown of land uses could be provided;
also to divide Coon Rapids from Fridley_ She also asked how they came up with how long it
takes someone to get to work.
Ms. Garwood said the traffic people were not here tonight but they take averages; they watch
traffic and estimate how long it takes to get from one point to another.
Councilmember Bolkcom noted that this is based on the 2000 census.
Ms. Garwood said a new traffic questionnaire is happening right no���. The analysis also looks
at where you live and where you work.
Larry KorLenowski, 529 Janesville St NE, said this cul-de-sac business is unnecessary. If he
has to come down another street and come up a hill it will be a problem. This is an unnecessary
expense and just creates more revenue for the city or county.
Cathleen Korzenowski, 524 Janesville St NE, said that this neighborhood is difficult to drive
through because of the steep hills. This will create a hardship on people in the area with no
access to East River Road. Right now she is unable to get up the hill on slippery days and she
will not be able to get to her home. She should not be denied access to roads she has spent her
life paying for, Putting in islands and u-turns does not service the people at all, it only further
inconveniences people. The current road flows well the way it is and will continue to do so.
Mayor Lund asked how they feel the county or city would make money on this project. Money
will be spent on this project, not made.
Mr. Korzenowski said that the funding is nat a necessary expenditure.
Mayor Lund asked if the Korzinowskis attended any of the meetings.
FRIDLEY CITY COUNCIL MEETING OF MARCH 26. 2012 PAGE 13
Ms. Korzenowski answered yes they did. After taking to all the neigbbors at the meetings, they
felt like no one was listening to them.
Mayor Lund said doing nothing is not a good option. This project is forward thinking; some
parts could happen in a few years . The entire project will not happen at once.
Councilmember Bolkcom said she is not totally against this project. Just because we approve
this resolution tonight there will still be future discussion. She would be against a cul-de-sac in
their area and would like to make sure they can get around in inclement weather.
Mr. Hickok said this street pattem goes back to the turn of the century. The road worked well
then but not now when you look at traffic numbers that exist today. It is difficult to come up
with anything short of a system that would separate the connections to East River Road.
Sepazating the housing from the heavy trafflc by creating cul-de-sacs has purpose to create a
visual separation and take away traffic. A]ot of time has been spent detercnining that there aze
certain streets that make sense to be blocked ofF.
Councilmember Saetke said the County is moving forward and had a choice of widening East
River Road to handle fizture traffic or make these modifications and close off some side streets.
If the road were made wider, sound walls would have to be installed. Residents objected to
widening East River Road and this is the alternative. It will not be easy, but we need to
compromise. This is a county road and not a city road. The county is trying not to have to take
out homes and widen the road.
Mayor Lund agreed the majority of the people did not want to widen the road. People in the
area do not want more traffic, but in the future, there will be more traffic. This is a better
compromise than widening the road.
Mr. Korzenowski asked how closing off streets would improve it that much.
Mr. Hickok said it is hazd to visualize what conditions will be because right now the flow
appears just fine. The predictability factor about it is that cazs are slowing down to turn; there
ara short blocks that are not consistent and median breaks. Double the traffic in this area and see
how that works; problems start to azise. The traffic is eventually going to come and this street
cannot continue to operate as we are today.
Ms. Korzenowski asked if they did an accident analysis as she does not notice any accidents;
she does not see it as problem.
Paul 5lesar, 44 Lock Lake Road, said everyone is upset with what is going to be happening in
their corner of the world. This is a county project and we are all residents of the county and the
city. Bypassing tcaffic seems logical but people aze not cheering that this is a good idea. He
asked Council to vote no to this project.
Mayor Lund asked what Mr. Sleezer did not like about the project.
FRIDLEY CITY COUNCIL MEETING OF MARCH 26. 2012 PAGE 14
Mr. Slesar said this is a residential neighborhood. He likes cops sitting in the median in his area
and pulling over speeders. He is not looking forward to more traffic. He also does not want to
see an increase in the speed limit but he sees this happening in the future. He likes to bike to
work and has concerns about all the traffic and making it dangerous to bike on East River Raad.
Couucilmember Bolkcom said this project looks at improvements to get bike traffic off East
River Road so bikers are not at the mercy of cars. Some improvements make sense. We will
have to change how we do things.
Mayor Lund noted he is aware people are resigned to this project but others realize doing
nothing is not the greatest altemative either. The County listened to the people and agreed not to
widen the road. The County has tried its best to listen to the City and ask f'or staff and Council
involvement. This project will never be what everyone wants it to be.
Dr. Burns noted that the county has made changes in response to the meetings.
Mr. Hickok said the traffic will be here with or withoui the change. This project presents
difficult problems with not a lot of solutions to pick from. The end product loQks diffexent today
had we not involved the publia This project will end up with the best solution considering al]
the elements that had to be considered.
Ms. Garwood said there will be no additional taxing done by the County for this road and they
are not asking the city to do that either. The county does nat add tax or access anything for this
project.
Councilmember Bolkcom asked about maintenance and who would maintain and plo�v the
roadway, bikeways and walkways.
Ms. Garwood said it is a county road so the county would maintain the road.
Commissioner Kordiak said this road will 1QOk great when it is finished. He appreciated the
consideration for this project There has been serious discussion on this project, and he asked
Council to support this resolution. Every point of location will have vast modifications in the
future. This is a work in prc�gress. The County does not bring traffic to Fridley, the traffic finds
Fridley and will continue as populations grow. A cul-de-sac is great far kids, bike, strollers etc.
and pravides a safe environment. All comments are important to consider and we will find
satisfaction together.
MOTION by Councilmember Bolkcom to move into record the final drafr of the East River
Road Project. Seconded by Councilmember Saeflce.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
MOTION by Councilmember Bolkcom to adopt Resolution 2012-25. Seconded by
Councilmember Barnette.
FRIDLEY CITY COUNCIL MEETING OF MARCH 26, 2012 PAGE 15
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY
2. Resolution Entering into an Agreement with the Minnesota Department of
Transportation for Preliminary Engineering for Safe Routes to School Project No.
ST20ll-21 and MnDOT Agency Agreement No. 00516
Councilmember Bolkcom asked on page 11 where it talks about the duties of the City, what the
risk was for Fridley. The estimated cost is $14,800; she asked if the City paid any part of the
cost or expense of the wark.
Jim Kosluchar, Public Works Director, said under that cost, the City would be using staff time
and would be reimbursed for staff time.
Councilmember Bolkcom asked on page 12 where it talks about staffing, if someone else would
be employed,
Mr. Kosluchar said we would employ our own staff.
Councilmember Bolkcom asked on page 13, number 2 where it talks about MnDOT and paying
them, she asked if we had to wait to be reimbursed.
Mr. Kosluchar answered the document relates to more contract payments and to testing, and
they aze reasonahle as far as costs. This is a standard clause. The soil analysis or testing would
be something we would pay and then get reimbursed.
Councilmember Balkcom askad on page 14, letter F, regarding the costs paid with federal funds
if there were any concerns federal funds will not be available.
Mr. Kosluchar answered that the federal funds would be allocated ahead of time.
Councilmember Bolkcom noted that pages 16/17 repeat themselves.
Mr. Kosluchar confirmed that is correct; page six of the resolution is missing from CounciPs
packet.
MOTION by Councilmember Bolkcom to move into record page 6 of the contract. Seconded
by Councilmember Saefke.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY
MOTION by Councilmember Bolkcom to adopt Resolution No. 2012-23. � Seconded by
Councilmember Saefke.
FRIDLEY CITY COUNCIL MEETING OF MARCH 26. 2012 PAGE 16
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
3. Resolution Authorizing application for DNR Local Trail Connection Grant Funds for
Unity Hospital Health Walk to Rice Creek Regional Trail.
Councilmember Bolkcom asked iP this is being done because it is cheaper and what funds were
for Moore Lake.
William Burns, City Manager, said there is a local match over $100,000.
Councilmember Bolkcom said that the project is $101,000
Dr. Burns confirmed it is a large local match.
Councilmember Bolkcom wanted to confirm the project cost. She was concerned the bids
would come ln higher because of the oil prices. She asked if staff was comfortable the project
could be done for the estimaYed price.
Jim Kosluchar, Public Works Director, said the price was adjusted from last year because of the
price of oil.
Councilmember Bolkcom asked if the City was committed to do this project no matter what the
cost was.
Mr. Kosluchar answered no, the funds could be returned.
Councilmember Varichak asked who would maintain the connections.
Mr. Kosluchar answered Public Works would maintain this area.
MOTION by Councilmember Bolkcom to adopt Resolution No. 2012-24. Seconded by
Councilmember Barnette.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
9. Informal Status Report.
Scott Hickok, Communiry Development Director, said April 21 is the first recycling drop-off
date for 2o12. The saine articles will be accepted as before and no scrap metal or tires can be
dropped of£ Check the website or call 763-572-3�99 to see what is okay to bring and not to
bring.
FRIDLEY CITY COUNCIL MEETING OF MARCH 26. 2012 PAGE 17
Mayor Lund said the SECA Empty Bowls will be held on Thursday from 4:30 p.m.-7:30 p.m. at
Murzyn Hall in Columbia Heights. A free-will donation for soup and salad will be accepted at
the door.
Councilmember Saefke added any contributions during the month of Marcb qualify for
matched funds by corporations in Minnesota.
Councilmember Bolkcom said the trailway by Locke Park on Locke Lake is being repaired in
the near future. She anticipates it happening in the next few months.
ADJOURN:
MOTION by Councilmember Barnette to adjourn. Seconded by Councilmember Varichak.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOU5LY AND THE MEETING ADJOURNEA AT 10:36
P.M.
Respectfully Submitted,
Knsta Monsrud Scott Lund
Recording Secretary Mayor
AGENDA ITEM
CITY COUNCIL MEETING OF APRIL 9, 2012
G7Y OF
FRIDLEY
Date: March 27, 2012
To: William Burns, City Managerd��
��
From: Scott Hickok, Community Development Director
lulie Jones, Planning Manager
Stacy Stromberg, Planner
Subject: Resolution Approving Special Use Permit Request, SP #12-01, by Signcrafters, for St. Philip's
Lutheran Church
INTRODUCTION
The petitioner, Mike Lawrance, of Signcrafters, who is
representing St. Philip's Lutheran Church, is requesting a
special use permit to allow an electronic message center
sign to be part of a new free-standing sign on the church
property, which is located at 6180 Hwy 65.
The church would like to construct a new 80 sq. ft. free-
standing sign, of which 40 sq. ft. of the sign will be the
electronic message center. It should be noted that though
the overall size of the new sign is 80 sq. ft., the total
square footage of the text is 55 sq. ft.
PLANNING COMMISSION RECOMMENDATION
At the March 21, 2012, Planning Commission meeting, a
public hearing was held for SP #12-01. After a 6rief
discussion, the Planning Commission recommended
approval of SP #12-01, with the stipulations as presented.
THE MOTION CARRIED UNANIMOUSLY.
PLANNING STAFF RECOMMENDATION
City Staff recommends concurrence with the Planning
Commission and approval of the attached resolution,
including the stipulations listed below.
5
STIPULATIONS
1. The petitioner shall obtain a sign permit and current sign erector license prior to installing any
signage on site.
2. Message on electronic message center sign sha(1 noY change more often than authorized under
Section 214.07 of the Fridley City Code.
3. Message on electronic message center sign sholl never flash or have motion that may distract
vehicular traffic in the orea.
4. Prior to sign instaJlation, the petitioner shall have the noriheast property stake marked to verify
sign location meeYS setback requirements.
5. The signage on the existing retaining wall shall be removed within 30 days of comp/etion of the
new free-sYandrng sign.
�
RESOLUTION NO. 2012 -
A RESOLUTION APPROVING SPECIAL USE PERMIT SP# 12-01
FOR SIGNCRAFTERS, ON BEHALF OF ST. PHILIPS LUTHERAN CHURCH, THE
PROPERTY OWNER OF 6180 HWY 65 NE
WHEREAS, Section 214.07.01 of the Fridley City Code allows electronic changeable signs in
residential districts, provided the requirements for Institutional Signs can be met, and then by a
special use permit; and
WHEREAS, on March 21, 2Q12, the Fridley Planning Commission held a public hearing to
consider a request by Signcrafters, on behalf of St. Philips Lutheran Church, the property owner of
6180 Hwy 65 in Fridley, on Outlot 1 and 2, Block 2, Moore Lake Highlands 4�' Addition, for a
Special Use Permit SP# 12-Q1 for an electronic changeable sign; and
WHEREAS, on April 9, 2012, the Pridley City Council approved the stipulations represented in
E�ibit A to this resolurion as the conditions approved by the City Council on S�ecial Use Permit
SP# 12-01; and
WHEREAS, the petitioner, Signcrafters, on behalf of the property owner, St. Philips Lutheran
Church, was presented with Exhibit A, the stipulations for SP# 12-01, at the April 9, 2012 City
Council meeting;
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the Ciry of Fridley that Special
Use Permit SP# 12-01 and stipulations represented in Exhibit A are hereby adopted by City Council
of the City of Fridley.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 9�'
DAY OF APRIL, 2012.
ATTEST:
DEBRA A. SKOGEN - CITY CLERK
%
SCOTT LUND — MAYOR
EXHIBIT A
SP# 12-01 Special Use Permit for an Electronic Changeable Sign
St. Philips Lutheran Church, 6180 Hwy 65 NE, Fridley, MN
Stipulations
l. The petitioner shall obtain a sign permit and current sign erector license prior to installing any
signage on site.
2. Message on elecuonic message center sign shall not change more often than authorized under
Section 214.07 of the Fridley City Code.
3. Message on electronic message center sign shall never flash or have mofion that may distract
vehicular traffic in the area.
4. Prior to sign installation, the petitioner shall have the northeast property stake marked to verify
sign location meets setback requirements.
5. The signage on the existing retaining wall shall be removed within 30 days of completion of the
new free-standing sign.
�
of Fridley Land Use Application
SP #12-01
GENERAL INFORMATION
Applicant:
Signcrafter's
Mike Lawrance
2405 Annapolis Lane N #200
Plymouth MN 55441
Requested Action:
Special Use Permit for an automatic changeable
Purpose:
To install a new free-standing sign with an
electronic message center sign
Existing Zoning:
R-3 (Multi-Family)
Location:
6180 Hwy 65
Size:
330,620 sq. ft. 7.59 acres
Existing Land Use:
St. Philips Lutheran Church
Surrounding Land Use & Zoning:
N: Miller Funeral Home & C-3
E: Hwy 65 & ROW
5: Moore Lake & Water
W: Sin�le FamilV Home & R-1
Comprehensive Plan Conformance:
Consistent with Plan
Zoning Ordinance Conformance:
Section 214.07 of the City of Fridley sign code
requires a special use permit for an automatic
changeable sign.
Zoning History:
1955 — Lot is platted
1958 —Church is constructed.
1959 — Education building constructed.
1965 — Sanctuary constructed.
1978 — Garage constructed.
1978 — Pylon sign permit.
1991— Building addition
1994 — Pylon sign permit.
1994 — Deck permit.
Legal Description of Property:
OutLot 1 and 2, Block 2, Moore Lake Highlands 4`"
Addition
�
March 21, 2012
SPECIAL INFORMATION
Public Utilities:
The building is connected.
Transportation:
The property is accessed off of West Moore Lake
Drive.
Physical Characteristics:
The property is encompassed with 2 lots that
contain the church building, a few detached
buildings, and parking area. It is bordered hy
Moore Lake on the south and also contains several
landscaped areas.
SUMMARY OF PROIECT
The petitioner, Mike Lawrance, of Signcrafter's,
who is representing St. Philip's Church, is requesting
a special use permit to allow an electronic message
center sign to be part of a new free-standing sign
that will be constructed on the church property,
which is located at 6180 Hwy 65.
SUMMARY OF ANALYSIS
City Staff recommends approval of this speciol use
permrt, with stipulations.
Electronic changeable signs are an approved special
use in a residentially zoned district with an
institution on it, provided the sign complies with
Aerial of the Site
CITY COUNCIL ACTION/60 DAY ACTION DATE
City Council — April 9, 2012
60 Day Date — April 16, 2012
Staff Report Prepared by: Stacy Stromberg
LAND USE APPLICATION
SPECIAL USE PERMIT #12-01
REQUEST
The petitio�er, Mike Lawrence, of Signcrafters, who is
representing St. Philip's Lutheran Church, is requesting a
special use permit to allow an electronic message center
sign to be part of a new free-standing sign on the church
property, which is located at 6180 Hwy 65.
The church would like to construct a new 80 sq. ft. free-
standing sign, of which 40 sq. ft. of the sign will be the
electronic message center. It should be noted that though
the overall size of the new sign is 80 sq. ft., the total
square footage of the text is 55 sq. ft.
HiSTORY AND ANALYSIS
The subject property is located on the southwest corner of
Hwy 65 and West Moore Lake Drive. The property is
zoned R-3, Multi-Family. The properties to the west are
zoned R-1, Single-Family. The properties to the north and
east are zoned C-3, General Shopping. The original church
building was constructed in 1958 and there have been
several additions to the building since then.
This property has had two free-standing sign permits in �
the past, one was issued in 1978 and the other was issued
� _ °-y� •° � in 1994. The permit issued in 1978 was for the existing
M� � ] � ..
� �;:` �``. .r
, .,.,�,�:�.,
,,E
�". ._ _
corner monument sign, which bears the name of the
church. The other 1994 sign permit was for a temporary
sign permit, which was for a two year time period. After
the expiretion of that temporary permit, staff noticed
that the sign had not been removed and informed the
church of the violation. The church ended up requesting
and obtaining a one-year extension from the City Council
on the temporary sign permit.
�.�.,..., j! The Planning Commission and City Council may recall,
_`�� that in 2006 a sign code text amendment was approved
�'�` "% — to allow institutions (churches, schools, hospitals, medical
t:'� clinics) that are located on residentially zoned property to
.,... ..
ri r' have similar standards for signage as commercially zoned
property, provided certain code requirements can be met. The new language for free-standing signs
states that institutions are allowed to have one free-standing sign per development, with a maximum
size of 80 sq. ft. provided that the sign is placed a minimum of 50 ft. from any neighboring residentially
zoned property (not including a residential site an institution is located on), the illuminated sign face is
10
perpendicular to an adjacent roadway and the sign does not create glare that wiflim pact adjacent
residential properties.
The proposed sign will be located
approximately 450 ft. from the closest
residential property, which is located at
6209 Baker Avenue. It will be
approximately 620 ft. from the property
located at 916 West Moore Lake Drive.
The illuminated sign faces will ae facing
north and south, which is perpendicular
to Hwy 65 and parallel to West Moore
Lake Drive, therefore reducing the
likelihood of creating glare to adjacent
residential properties.
The proposed sign also complies with the
maximum size requirements of 80 sq. ft.,
height requirement of 25 ft., and is
proposed to be approximately 10 ft. from
the east property line and 50 ft. from the
north property line, therefore complying
with the 10 ft. setback from a property line requirement.
The petitioner is requesting a special use permit to allow the electronic message center as part of the
new free-standing sign. Electronic changeable signs are an approved special use in any zoning district,
except residential, unless meeting the requirements for Institutional Signs; provided the electronic
message center sign doesn't change more often than once every 45 seconds. The sign also needs to be
in conformance wiih all other sign requirements, which as stated above, it does.
City staff hasn't heard from any neighboring property owners.
City Staff recommends approval o/ the speciol use permit as electronic changeable signs are an approved
specio! use in a residential disirict provided all requirements for Insiitutional5ignoge can be met
subject to stipulations.
STIPULATIONS
City Staff recommends that if the special use permit is grented, the following stipulations be attached.
1. The petitioner shall obtarn a sign permrt and current sign erector license prior to installing any
signage on site.
2. Message on electronic message center sign shall not change more often than authorized under
Section 214.07 of the Fridley City Code.
3. Message on electronic message center sign sha/l never flash or have motion that may distract
vehicular traffic i� the area.
4. Prior to srgn installatron, the petitioner sholl have the northeast property stake marked to verify
sign location meets setbock requirements.
5. The signage on the existing retoining wall shall be removed within 30 days of completion of the
new free-sianding sign.
11
AGENDA ITEM
CITY COUNCIL MEETING OF APRIL 9, 2012
CfTY OF
FRIDLEY
1'0: ��G`illiam W. Aums, Cit� blanager ���
From: Deboxah Dahl, Human Resousces Directot�
Donovan Abbott, Public Safety Duectoi
Date: April 5, 2012
Re: CON'TRAC'I' WITH POLICE PATROL UNION
We aze pleased and proud [o announce a two-year tentadve agxeement has been xeached between the
Ciry of Fridley and the Police Patrol bargauung unit (I,.H.L.S. Local #179) for the 30L and 2013
calendax yeaxs.
As }>ou may recall, the Ciry xecentlp entered into negotiauons and xeached what we believe is a very
posinve and xe�3sonable agreement. The patcol unit has taken a vote and have approved thc ter�tanve
a�eement, which is attached for poux xeview and final Council appcQVal at the t�pn19, 2012 Council
Meeting. We think it is also important to point out that this was a vexy productive and positive pxocess
and fell within the directic�es and guidance that Council established in Novembes of 2011. The rerms �f
the agxeement are suci�snarized below:
SUMMARY OF CHANGES:
1. Article 33 - Duration (Two j�ears - 2012 and 2013)
2. Ardcle 17 - Insurance
Emplopees in this bazgaii��g unit cvill receive the sune insuxance benefit package as all Qthex Citp
employees, which includes the 6ealth, dental and life insucance and altemarives (cash opuon or
benefit leave). Having the same benefit package aeross the board has been a long-stanclingpattern
and valued pxacnce at Fridley, which is unique to our City and difficult to defend, given the
xeducrions in budgets and uncertaintu of the economy.
3. Article 22 - Wages
In comparing wages of Pridlcy's patrol officers to the City's established peer list, our research found
that oux �oup continues to ttail behind thc maxket b� 5-7% on a�rerage. As in most negotiarions,
wages aze the typically the biggest sucking point W'ith the economy and the City's budget show-ing
• Page 1 ,' .1
slight signs of unprovement, the unions �vere very xeasonable and undexstanding through
negotiauons, particulaxly �c7th Gcagc s.
The tentarive agteement is callu�g fox a genexal increase of 1;/o on Jan. 1, 2012 and anothex 1;% on
Julj� 1, 2012, as well as a 2% on Jan. 1, 2013.
5. Article 22.3 - Shift DiffecenUal (New)
Both paxties a�eed ta pxo�2de for an e��cning shift diffeTential fox thosc employees �cho wosk
between 71 p.m. and 7 a.m. according to the follo�ving schedule:
a. An addiuonal $0.50 per houc �vill be paid for xegulat houts worked.
b. t1n addirional one and one-half (1 1/2) tunes the shift differendal ($0.75 pex ho�) will be paid
in addidon to oveTdme compensarion for hoars woxked in addidon to a xegularly scheduled
shift, and fox call back ox eaxly xeport to a shifc, far extta dut� houcs, or voluntary ovemme
shiFts.
c. An addiuonal two (2) rimes the shift differential ($1.00 pex hour) will be paid in addirion to
ovectnrie pa}- for overtime houxs worked on a holiday.
d. Shift diffexential does not apply to nn}� leave t�•pe taken fox ho�s dunng those hours.
6. Article 25.4 - Annual Leave Sell-back Program
The union a�eed to eliminate the �lnnual I,eave Se11-back pxogxam fxom rhe contxact in
considexation of addi»g 40 hours ro the annual leave cap of 240 houTS and including in the conteact
the y�eai-end payout of xemaining holiday houxs (see Acdcle 26.4 bclo�v). This is a significant decision
and one that the Ciq� woxked very hard to negodate out of the contracts at the c�ecdon of Councd.
In eschange fox the eliminadon of the annualleave sell-back program, the Cit�� agreed to incxease the
annual leave cap.'I'he curxent cap is 240 houxs foT non-union, the patrol utuon and sexgeant's union.
This agteement raises the cap to 280 hours (35 days). Employees would not earn addirional annual
leave, just that they would be allowed to carcy over 40 mote hoars into the follo�ving year.
The City's annual leave psogram was established in 1983 to xemove sick leave and replace it �vith
annual leave (the Ciry's vexsion oE Pessonal Time Off - P1'O). The cap 6as not been adjusted since its
inception. Oux tesearch sho�vs that Fxidley's cap is well below what other cities offer in terms of a
cap. Fridley has been at 30 days where oar comparables are at 44. This recommendauon will put
Fndley moxe in line uith what oTher ciries aze offering.
7. P,rticle 2G.4 - Holiday Pay
Both pazdes agxeed to specify in the conuact that any ��unused" holiday time �vould be paid out at
the end of the year. This has been a long-standing pxacuce in the Police Depattment (patrol officexs
and patxol sesgeants have been paid out for 24 to 88 hours of holiday time), however, there has
nevex been a wxirten procnsion ui the conrtact fox this. The current contxact pxo�ndes for eleven
• Page 2 13
RESOLUTION NO. - 2012
A RESOLUTION APPROVING AND AUTHORIZING SIGNING
AN AGREEMENT WITH POLICE OFFICERS OF THE CITY OF
FRIDLEY POLICE DEPARTMENT FOR THE YEARS 2012 & 2013
WHEREAS, the Law Enforcement Labor Services, Inc. as bargaining representative of the
Police Officers of the Ciry of Fridley, has presented to the Ciry of Fridley various requests
relating to the wages and working conditions of Police Officers of the Police Department of
the Ciry of Fridley; and
WHEREAS, the City of Fridley has presented various requests to the Union and to the
Employees relating to �vages and working conditions of Police Officers of the Police
Department of the Ciry of Fridley; and
WHEREAS, representatives of the Union and the City have met and negotiated regarding
the requests of the Union and the City; and
WI-IEREAS, representatives of the Union and the City have reached an agreement (E�chibit
"A") and
,
WHEREAS, Union members voted in favor of adopting the agreement,
NOW, 7'HEREFORE, BE IT RESOLVED that the City Council hereby approves said
Agreement and that the Mayor and the City Manager are hereby authorized to execute the
attached Agteement (Exhibit "A") relating to wages and wocking conditions of Police
Officers of the City of Fridley.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY
THIS DAY OF . 2012.
ATTEST:
D�BRA SKOGEN - CITY CLERK
SCOTT J. LiJND - MAYOR
15
EXHIBIT "A"
LABOR AGREEMENT
BETWEEN
THE CITY OF FRIDLEY
AND
LAW ENFORCEMENT LABOR SERVICES, INC.
LOCAL NO. 119
2012 & 2013
7is
LABOR AGREEMENT
BETWEEN
THE CITY OF FRIDLEY
AND
LAW ENFORCEMENT LABOR SERVICES, INC.
LOCAL NO. 119
2012 & 2013
TABLE OF CONTENTS
ARTICLE PAGE
1. Purpose of Agreement 1
2. Recognition 1
3. Definitions 1
4. Employer Security 3
5. Employer Authority 3
6. Union Security 3
7. Employee Rights - Grievance Procedure 4
8. Savings Clause 7
9. Seniority 7
10. Discipline 8
11. Constitutional Protection 9
12. Work Schedules 9
13. Ovex�time 9
14. Court Time 10
�i7
15. Call Back Time
16. Working Out of Classi�cation
17. Insurance
18. Standby Pay
19. Uniforms
20. P.O.S.T. Training
21. Longevity and Educational Incentive
22. Wage Rates
23. Legal Defense
24. Probationary Periods
25. Annual Leave
26. Holidays
27. Short-term Disability
28. Bereavement Leave Pay
29. Jury Pay
30. Compensatory 1�me
31. Employee Education Program
32. Pay for Investigators or School Resource Officer
33. BMC Case No. 85-PN-486-A. Issue 8
34. Waiver
35. Duration
i.iJ
10
11
11
13
13
13
13
15
15
16
16
18
18
19
20
20
20
21
21
22
22
LABOR AGREEMENT
BE7�'VEEN
THE CITY OF FRIDLEY
AND
LAW ENFORCEMENT LABOR SERVICES, INC.
LOCAL NO. 119
Article 1. Purpose of Agreement
This Agreement is entered into between the City of Fridley, hereinafter called the
Employer, and Law Enforcement Labor Services, Inc., hereinafter called t.he Union.
It is the intent and purpose of this Agreement to:
1.1 Establish procedures for the resolution of disputes concerning this Agreement's
interpretation and/or application; and
12 Place in written form the parties' agreement upon terms and conditions of
employment for the duration of this Agreement.
Article 2. Recognition
2.1 The Employer recognizes the Union as the exclusive representative, under
Minnesota Statutes, Section 179A.03, subdivision 8, for all police personnel in
the following job classifications:
1. Police Officer
22 In the event the Employer and the Union are unable to agree as to the
inclusion or exclusion of a new or modified job class, the issue shall be
submitted to the Bureau of Mediation Services for determination.
Article 3. Definitions
3.1 Union
Law Enforcement Labor Services, Inc.
'�9
3.2 Union Member
A member of the Law Enforcement Labor Services, Inc.
3.3 Emnlovee
A member of the exclusively recognized bargaining unit.
3.4 Department
The Fridley Police Department.
3,5 Emnlover
The City of Fridley.
3.6 Chief
The Public Safety Director of the Fridley Police Department.
3.7 Union Officer
Officer elected or appointed by the Law Enforcement Labor Services, Inc.
3.8 Inve sti eator/Dete ctive
An Employee specifically assigned or classified by the Employer to the job
classification and/or job position of Investigator/Detective.
3.9 Overtime
Work performed at the express authorization of the Employer in excess of the
Employee's scheduled shift.
3.10 Scheduled Shift
A consecutive work period, including rest breaks and a lunch break.
3.11 Rest Breaks
Periods during the scheduled shift during which the Employee remains on
continual duty and is responsible for assigned duties.
�
3.12 Lunch Break
A period during the scheduled shift during which the Employee remains on
continual duty and is responsible for assigned duties.
3.13 Strike
Concerted action in £ailing to report for duty, the willful absence from one's
position, the stoppage of work, slow-down, or abstinence in whole or in part
fiom the full, faithful; and proper performance of the duties of employment for
the purposes of inducing, influencing or coercing a change in the conditions or
compensation or the rights, privileges or obligations of employment.
Article 4. Employer Security
The Union agrees that during the life of this Agreement the Union will not cause,
encourage, participate in or support any strike, slow-down or other interruption of or
int.erference with the normal functions of the Employer.
Article 5. Employer Authority
5.1 The Employer retains the full and unrestricted right to operate and manage all
manpower, facilities, and equipment; to establish functions and programs; to
set and amend budgets; to determine the utilization of technology; to establish
and modify the organizational structure; to select, direct, and determine the
number of personnel; to establish work schedules, and to perform any inherent
managerial function not specifically limited by this Agreement.
5.2 Any term and condition of employment not specifically established or modified
by this Agreement shall remain solely withiii the discretion of the Employer to
modify, establish, or eliminate.
Article 6. Union Security
6.1 The Employer shall deduct from the wages of Employees who authorize such a
deduction in writing an amount necessary to cover monthly Union dues. Such
monies shall be remitted as directed by the Union.
6.2 The Union may designate Employees from the bargaining unit to act as a
steward and an alternate and shall inform the Employer in writing of such
choice and changes in the position of steward and/or alternate.
6.3 The Employer shall make space available on the Employee bulletin board for
posting Union notice(s) and announcement(s).
�1
6.4 The Union agrees to indemnify and hold the Employer harmless against any
and all claims, suits, orders, or judgments brought or issued against the
Employer as a result of any action taken or not taken by the Employer under
the provisions of this Article.
Article 7. Employee Rights — Grievance Procedure
7.1 Definition of a Grievance
A grievance is defined as a dispute or disagreement as to the interpretation or
application of the specific terms and conditions of this Agreement.
7.2 Union Representatives
The Employer will recognize Representatives designated by the Union as the
grievance representatives of the bargaining unit having the duties and
responsibilities established by this Article. The Union shall notify the
Employer in writing of the names of such Union Representatives and of their
successors when so designated as provided by Section 6.2 of this Agxreement.
7.3 Processing of Grievance
It is recognized and accepted by the Union and the Employer that the
processing of grievances as hereinafter provided is limited by the job duties and
responsibilities of the Employees and shall therefore be accomplished during
normal working hours only when consistent with such Employee duties and
responsibilities. The aggrieved Employee and a Union Representative shall be
allowed a reasonable amount of time without loss in pay when a grievance is
investigated and presented to the Employer during normal working hours
provided that the Employee and the Union Representative have notified and
received the approval of the designated supervisor who has determined that
such absence is reasonable and would not be detrimental to the work programs
of the Employer.
7.4 Procedure
Grievances, as defined by Section 7.1, shall be resolved in conformance with
the following procedure:
St2D 1
An Employee claiming a violation concerning the interpretation or application
of this Agreement shall, within twenty-one (21) calendar days after such
alleged violation has occurred, present such grievance to the Employee's
supervisor as designated by the Employer. The Employer-designated
�
representative will discuss and give an answer to such Step 1 grievance within
ten (10) calendar days after receipt. A grievance not resolved in Step 1 and
appealed to Step 2, shall be placed in writing setting forth the nature of the
grievance, the facts on which it is based; the provision or provisions of the
Agreement allegedly violated; the remedy requested; and shall be, appealed to
Step 2 within ten (10) calendar days after the Employer-designated
representative's final answer to Step 1. Any grievance not appealed in writing
to Step 2 by the Union within ten (10) calendar days shall be considered
waived.
Step 2
If appealed, the written grievance shall be presented by the Union and
discussed with the Employer-designated Step 2 representative. The Employer-
designated representative shall give the Union the Employer's answer in
writing within ten (10) calendar days after receipt of such Step 2 grievance. A
grievance not resolved in Step 2 may be appealed to Step 3 within ten (10)
calendar days following the Employer-designated representative's final answer
in Step 2. Any grievance not appealed in writing to Step 3 by the Union within
ten (10) calendar days shall be considered waived.
Step 2a
If the grievance is not resolved at Step 2 of the grievance procedure, the
parties, by mutual agreement, may submit the matter to mediation with the
Bureau of Mediation Services. Submitting the grievance to mediation
preserves timeliness for Step 3 of the grievance procedure. Any grievance not
appealed in writing to Step 3 by the Union within ten (10) calendar days of
mediation shall be considered waived.
Step 3
A grievance unresolved in Step 2 or Step 2a and appealed to Step 3 by the
Union shall be submitted to arbitration subject to the provisions of the Public
Employment Labor Relations Act of 1971, as amended. The selection of an
arbitrator shall be made in accordance with the "Rules Governing the
Arbitration of Grievances" as established by the Bureau of Mediation Services.
7.5 Arbitrator's Authoritv
a. The arbitrator shall have no right to amend, modify, nullify, ignore, add
to, or subtract from the terms and conditions of this Agreement. The
arbitrator shall consider and decide only the specific issue(s) submitted
in writing by the Employer and the Union, and shall have no authority
to make a decision on any other issue not so submitted.
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b. The arbitrator shall be without power to make decisions contrary to, or
inconsistent with, or modifying or varying in any way to application of
laws, rules, or regulations having the force and effect of law. The
arbitrator's decision shall be submitted in writing within thirty (30)
days following close of the hearing or the submission of briefs by the
parties, whichever be later, unless the parties agree to an extension.
The decision shall be binding on both the Employer and the Union and
shall be based solely on the arbitrator's interpretation or application of
the express terms of this Agreement and to the facts of the grievance
presented.
a The fees and expenses for the arbitrator's services and proceedings shall
be borne equally by the Employer and the Union provided that each
party shall be responsible for compensating its own representatives and
witnesses. If either party desires a verbatim record of the proceedings,
it may cause such a record to be made, providing it pays for the record.
If both parties desire a verbatim record of the proceedings the cost shall
be shared equally.
7.6 Waiver
If a grievance is not presented within the time limits set forth above, it shall be
wnsidered "waived." If a grievance is not appealed to the next step within the
specified time limit or any agreed extension thereof, it shall be considered
settled on the basis of the Employer's last answer. If the Employer does not
answer a grievance or an appeal thereof within the specified time limits, the
Union may elect to treat the grievance as denied at that step and immediately
appeal the grievance to the next step. The time limit in each step may be
extended by mutual written agreement of the Employer and the Union in each
step.
7.7 Choice of Remedv
If, as a result of the written Employer response in St.ep 2 or 2a, the grievance
remains unresolved, and if the grievance involves the suspension, demotion or
discharee of an Employee who has completed the required probationary period,
the grievance may be appealed either to Step 3 of Article 7 or to another
procedure such as � eteran's Preference or Fair Emplovment. If appealed to
anYprocedure other than Sten 3 of this Article, the grievance is not subject to
the arbitration proceduie as provided in Step 3 of Article 7. The aggrieved
Employee shall indicate in writing which procedure is to be utilized - Step 3 of
Article 7 or an alternate procedure - and shall sign a statement to the effect
�4
that the choice of the alternate procedure precludes the aggrieved Employee
from making a subsequent appeal through Step 3 of E�ticle 7.
Except with respect to statutes under jurisdiction of the United States Equal
Opportunity Commission, an employee pursuing a statutory remedy is not
precluded from also pursuing an appeal under this grievance procedure. If a
court of competent iurisdiction rules contrar�to the rulin� in EEOC u. Board of
Goaernors of State Colleges and Uniuersities. 957 F2d 424 (7�h Cir.), cert.
denied, 506 U.S. 906. 113 S.Ct. 299(1992), or if Board of Gouernors is judiciallv
or legislativelv overruled, this naraeraph of this Section shall be null and void.
Article 8. Savings Clause
This Agreement is subject to the laws of the United States, the State of
Minnesota and the City of Fridley. In the event any provision of this
Agreement shall be held to be contraiy to law by a court of competent
jurisdiction from whose final judgment or decree no appeal has been taken
within the time provided, such provisions shall be voided. All other provisions
of this Agreement shall continue in full force and effect. The voided provision
may be renegotiated at the written request of either party.
Article 9. Seniority
9.1 Seniority shall be determined by the Employee's length of continuous
employment with the Police Department and posted in an appropriate location.
Seniority rosters may be maintained by the Chief on the basis of time in grade
and time within specific classiiications.
92 During the probationary period, a newly hired or rehired Employee may be
discharged at the sole direction of the Employer. During the probationary
period a promoted or reassigned Employee may be replaced in his/her previous
position at the sole discretion of the Employer.
9.3 A reduction of work force will be accomplished on the basis of seniority.
Employees shall be recalled from layoff on the basis of seniority. An Employee
on layoff shall have an opportunity to return to work within two years (2) of the
time of his/her layoff before any new Employee is hired.
9.4 Senior Employees will be given preference with regard to transfer, job
classification assignments and promotions when the job-relevant qualifications
of Employees are equal.
�5
9.5 Senior qualified Employees shall be given shift assignments preference after
eighteen (18) months of continuous full-time employment.
9.6 One continuous scheduled annual leave period shall be selected on the basis of
seniority until March ls� of each calendar year. After March lst, scheduled
annual leave shall be on a first-come, first-served basis.
9.7 Employees shall lose their seniority for the following reasons:
a. Discharge, if not reversed;
b. Resignation;
c. Unexcused failure to return to work after expiration of a vacation or
formal leave of absence. Events beyond the control of the Employee,
which prevent the Employee from returning to work will not cause loss
of seniority;
d. Retirement.
Article 10. Discipline
10.1 The Employer will discipline Employees for just cause only. Discipline will be
in one or more of the following forms:
a. oral reprimand;
b. written reprimand;
c. suspension;
d. demotion; or
e, discharge.
10.2 Suspensions, demotions and discharges will be in written form.
10.3 Written reprimands, notices of suspension, and notices of discharge which are
to become part of an Employee's personnel file, shall be read and acknowledged
by signature of the Employee. Employees and the Union will receive a copy of
such reprimands and/or notices.
10.4 Employees may examine their own individual personnel files at reasonable
times under the direct supervision of the Employer.
10.5 Discharges will be preceded by suspension without pay for forty (40) regularly
scheduled working hours unless otherwise required by law.
�l:l
10.6 Employees will not be questioned concerning an investigation of disciplinary
action unless the Employee has been given an opportunity to have a Union
representative present at such questioning.
10.7 Grievances relating to this Article shall be initiated by the Union in Step 2 of
the grievance procedure under Article 7.
Article 11. Constitutional Protection
Employees shall have the rights granted to all citizens by the United States and
Minnesota State Constitutions.
Article 12. Work Schedules
12.1 The normal work year is an average forty (40) hour work week for full-time
Employees to be accounted for by each Employee through:
a. hours worked on assigned shifts;
b. holidays;
c. assigned training;
e. authorized leave time.
12.2 Nothing contained in this or any other Article shall be interpreted to be a
guarantee of a minimum or maximum number of hours the Employer may
assign Employees.
Article 13. Overtime
13.1 Employees will be compensated at one and one-half (1-1/2) times the
Employee's regular base pay rate for hours worked in excess of the Employee's
regularly scheduled shift. Changes of shifts do not qualify an Employee for
overtime under this r�,rticle.
132 Overtime will be distributed as equally as practicable.
13.3 Overtime refused by Employees will for record purposes under �ticle 132 be
considered as unpaid overtime worked.
13.4 For the puipose of computing overtime compensation, overtime hours worked
shall not be pyramided, compounded or paid twice for the same hours worked.
13.5 Overtime will be calculated to the nearest fifteen (15) minutes.
�7
13.6 Employees have the obligation to work overtime or call backs if requested by
the Employer unless unusual circumstances prevent the Employee fiom so
working.
Article 14. Court Time
14.1 An Employee who is required to appear in court during his/her scheduled off-
duty time shall receive a minimum of three (3) hours pay at one and one-half
(1.5) times the Employee's base pay rate. The City may assign the Employee to
stand by pending the notification of their appearance being required. Unless
otherwise specified by the City or the prosecutor, this period of standby shall
commence three (3) hours prior to the time scheduled for the Employee's
appearance in court. The Employee will be compensated for three (3) hours at
their base rate as provided in Article 18 for each day on standby.
14.2 If the court appearance is scheduled during the Employee's off time, and if the
court appearance is cancelled, the Employee will be noti£ied by the end of the
business day (5:Q0 p.m.) preceding the court appearance. If notification of
cancellation is not made by the end of the business day (5:00 p.m.) preceding
the court appearance, the Employee will receive standby pay for t.hree (3) hours
at their base rate of pay.
14.3 The business day notice applies to all court cases for which the Employee
receives notice resulting from their employment with the City.
14.4 Employees who are assigned to standby for a court appearance during their off-
duty time, and who are then notified by the prosecuting attorney that they
need to appear and who do appear in court shall receive a minimum of three (3)
hours pay at one and one-half (1.5) times the Employee base rate of pay.
Employees will not be paid both standby pay and for three (3) hours at one and
one-half their base rate of pay.
14.5 Employees will be required to appear for the Court Trials/Traffic Coux-t, for
Contested Omnibus Hearings, for Implied Consent Hearings, and for any other
court appearance where the City or the prosecuting attorney directs that
Standby is not feasible.
Article 15. Call Back Time
15.1 An Employee who is called to duty during the Employee's scheduled off-duty
time shall receive a minimum of three (3) hours pay at one and one-half (1-1/2)
times the Employee's base pay rate. An extension or early report to a regularly
scheduled shift for duty does not qualify the Employee for the three (3) hour
minimum.
�
15.2 An Employee who works extra-duty work (outside employment) during the
Employee's scheduled off-duty time shall receive a minimum of two (2) hours
pay at one and one-half (1 '/s) times the Employee's base pay rate. Extra-duty
hours worked on a holiday, as defined in Article 26, shall be compensated at
two (2) times the Employee's base pay rate.
Article 16. Working Out of Classification
Employees assigned by the Employer to assume the full responsibilities and authority
of a higher job classification shall receive the salary schedule of the higher
classification for the duration of the assignment.
Article 17. Insurance
17.1 For the calendar year 2012, for Employees who choose single coverage in the
Base Plan, the Employer will contribute up to $620.87 per month per employee
toward the single health insurance premium and $1,318.37 per month toward
the dependent health insurance premium, or an amount equal to that provided
to non-union employees, whichever is greater, in accordance with the
Employer's Flexible Benefit Plan.
For the calendar year of 2013, for those Employees who choose wverage in the
Base Plan, the Employer will contribute the same amount provided to non-
union employees. If the 2013 rate for the non-union employees is less, the 2012
contribution will remain in effect.
17.2 For the calendar year 2012, for Employees who choose the high deductible
health plan and health reimbursement arrangement (HRA), the Employer will
contribute $520.87 per month toward the single health insurance premium and
$1218.37 toward dependent health insurance premium, or an equal amount to
that provided to non-union employees, whichever is greater, in accordance with
the Employer's Flexible Benefit Plan.
For the calendar year of 2013, for those Employees who choose coverage in the
HRA Plan, the Employer will contribute the same amount provided to non-
union employees. If the 2013 rate for the non-union employees is less, the 2012
contribution will remain in effect.
17.3 For the calendar gear 2012, for Employees who choose the high deductible
health plan and health reimbursement arrangement (HR�A), the Employer will
contribute $100 per month toward the VEBA Trust Account, or an equal
amount to that provided to non-union employees, whichever is greater, in
accordance with the Employer's Flexible Benefit Plan
�
For the calendar year of 2013, for those Employees who choose coverage in the
HRA Plan, the Employer will contribute the same amount provided to non-
union employees in their HRA VEBA. If the 2013 rate for the non-union
employees is less, the 2012 contribution will remain in effect.
17.4 For the calendar year 2012, for Employees who choose the high
deductible health plan and healthcare savings account (HSA), the Employer
will contribute $520.87 per month toward single health insurance premium
and $1,218.37 toward the dependent health insurance premium, or an equal
amount to that provided to non-union employees, whichever is greater, in
accordance with the Employer's Flexible Benefit Plan.
For the calendar year of 2013, for those Employees who choose coverage in the
HSA Plan, the Employer will contribute the same amount provided to non-
union employees in their HSA account. If the 2013 rate for the non-union
employees is less, the 2012 contribution will remain in effect.
17.5 For the calendar year 2012, for Employees who choose the high deductible
health plan and healthcare savings account (H.S.A.), the Employer will
wntribute $100 per month toward the H.S.�. Account, or an equal amount to
that provided to non-union employees, whichever is greater, in accordance with
the Employer's Flexible Benefit Plan. For the calendar year 2013, for
Employees who choose the high deductible health plan and healthcare savings
account (H.S.A.), the Employer will contribute an equal amount toward the
HSA as is provided to non-union employees, whichever is greater, in
accordance with the Employer's Flexible Benefit Plan.
17.6 For the calendar years of 2012 and 2013, for Employees who choose dental
coverage, the Employer will contribute up to $22 per month toward the dental
insurance premium, or an amount equal to that provided to non-union
employees, whichever is greater, in accordance with the Employer's Flexible
Benefit Plan.
17.7 The Employer will provide group term life insurance with a maximum of
$25,000 per Employee and additional accidental death and disability insurance
with a maximum of $25,000 per Employee (current cost is $4.25 per month), or
an amount equal to that provided to non-union employees, whichever is
greater, in accordance with the Employer's Flexible Senefit Plan.
17.8 For the calendar year 2012, in accordance with the Employer's Flexible Benefit
Plan, Employees have the option during an open enrollment period or during
approved qualified events to decline health or dental insurance coverage,
provided they provide proof of coverage elsewhere. In lieu of electing health
and dental benefits, Employees may elect the option of having ten (10)
additional Benefit Leave Days or a monthly cash benefit of $448.92, or the
amount equal to or greater than the amount provided to non-union employees.
�
For the calendar year 2013, for Employees who choose to waive the health and
dental programs and elect Benefit Leave Days or the monthl5� cash option, the
Employer will contribute the same amount provided to non-union employees,
whichever is greater, in accordance with the Employer's Flexible Benefit Plan.
If the 2013 amount for the non-union employees is less, the 2012 amount will
remain in effect.
Benefit Leave days are required to be used within in the calendar y�ear and
may not 6e carried into the following year.
Article 18. Standby Pay
Employees required by the Employer to standby shall be paid for such standby time
at the rate of one hour's pay for each hour on standby. Employees placed on standby
shall remain able to respond within a reasonable time. Such reasonable time, if not
otherwise specified at the time of assignment to standby, shall be one (1) hour to the
police department, assigned court location, or other location designated by the City.
Employees placed on standby shall remain available to be contacted by the Employer
by normal means to include phone or wireless communication devices. Employees
assigned to standby for wurt appearances shall be compensated for three (3) hours of
pay for each day or portion of a day on standby.
Article 19. Uniforms
The Employer shall provide required uniform and equipment items.
Article 20. P.O.S.T. Training
20.1 Employer shall assign training at Employer's expense for Police Officers to
complete 48 hours of P.O.S.T. Board approved education during each three-
year licensing period.
202 Employer shall pay the cost of maintaining P.O.S.T. licensure for all
Employees required to maintain the license.
Article 21. Longevity and Educational Incentive
Effective July 1, 1978, the following terms and conditions are effective, except that
Employees hired after January 1, 1987, shall not be eligible for educational incentive.
21.1 After four (4) years of continuous employment each Employee shall choose to
be paid three percent (3%) of the Employee's base rate or supplementary pay,
based on educational credits as outlined in 21.6 of this Article.
�
212 After eight (8) years of continuous employment, each Employee shall choose to
be paid supplementary pay of five percent (5%) of the Employee's base rate, or
supplementary pay based on educational credits, as outlined 21.6 of this
Article.
21.3 After twelve (12) years of continuous employment, each Employee shall choose
to be paid supplementary pay of seven percent (7%) of the Employee's base
rate, or supplementary pay based on educational credits, as outlined in 21.6 of
this Article.
21.4 After sixteen (16) years of continuous employment, each Employee shall choose
to be paid supplementary pay of nine percent (9%) of the Employee's base rate,
or supplementary pay based on educational credits, as outlined in 21.6 of this
Article.
21.5 Employees may choose supplementary pay either for length of service or for
educational credits no more often than once every twelve (12) months.
21.6 Supplementary pay based on educational credits will be paid to Employees
after twelve (12) months of continuous employment at the rate of:
Educational credits stated in
terms of colle�e quarter credits
45-89
90 - 134
135 - 179
180 or more
Percentage Pay
increment
3%
5%
7%
9%
Not all courses are to be eligible for credit. Courses receiving quali ing credits
must be job-related. (Thus, a four-year degree is not automatically 180 credits
- or two year certificate is not automatically 90 credits.) Job-related courses
plus those formally required to enter such courses shall be counted. For
example: If Principles of Psychology (8 credits) is required before taking
Psychology of Police Work (3 credits), completion of those courses would yield a
total of eleven qualifying credits. C.E.U.'s (Continuing Education Units) in job-
related seminars, short courses, institutes, etc. shall also be counted.
The Employer shall determine which courses are job-related. Disputes are
grievable based on the criteria outlined in the award of Minnesota Bureau of
Mediation Services Case No. 78-PN-370-A.
�T+
Article 22. Wage Rates
22.1 The following hourly wage rates will apply fox� 2012 & 2013 (amounts may be
rounded to two decimal points):
Start
Af'ter six months
After one y�ear
After two years
Af'ter three years
Jan. 1
2012
20.66
22.26
25.51
28.56
31.75
July 1
2012
20.87
22.48
25.77
28.85
32.07
Jan. 1
2013
21.29
22.93
26.29
29.43
32.71
22.2 Employees classified or assigned by the Employer to the following job
classifications or positions will receive five percent (5%) in addition to their
regular wage rate:
Investigative (detective); School Resource Officer; Rental Housing Ofizcer and
Drug Task Force Investigator
222 An Employee certified for and assigned to Field Training Officer (FTO) duties
shall receive overtime pay equal to the overtime rate or compensatory time at
time and one-half up to the limit in Article 30, in addition to any other regular
overtime worked, for any single shift worked as Field Training Officer as
indicated:
Shift of 12 or more hours two (2) hours
Shift of 8 to 11.9 hours one and one half (1-1/2) hours
Shift of 4 to 7.9 hours one (1) hour
22.3 Employees who work between 11 p.m. and 7 a.m. shall be paid a shift
differential for hours worked between those times, according to the following
schedule:
a. An additional $0.50 per hour will be paid for regular houx�s worked.
b. An additional one and one-half (1 1/2) times the shift differential ($0.75
per hour) will be paid in addition to overtime compensation for hours
worked in addition to a regularly scheduled shift, and for call back or
early report to a shift, for extra duty hours, or voluntary overtime
shifts.
c. An additional two (2) times the shift differential ($1.00 per hour) will be
paid in addition to overtime pay for overtime hours worked on a
holiday.
�
d. Shift differential does not apply to any leave type taken for hours
during those hours.
Article 23. Legal Defense
23.1 Employees involved in litigation because of proven negligence, or non-
observance of laws, or of a personal nature, may not receive legal defense by
the municipality.
23.2 Any Employee who is charged with a traffic violation, ordinance violation or
criminal offense arising from acts performed within the scope of his/her
employment, when such act is performed in good faith and under the direct
order of his/her supervisor, shall be reimbursed for attorney's fees and court
costs actually incurred by such Employee in defending against such charge.
23.3 Employer will provide protection for all Employees against false arrest
charges.
Article 24. Probationary Periods
All newly hired or rehired Employees will serve a twelve (12) month probationary
period.
Article 25. Annual Leave
25.1 Each Employee shall be entitled to annual leave away from employment with
pay. Employees shall accrue annual leave based on an average eight (8) hour
work day. Annual leave may be used for scheduled or emergency absences
from employment. Annual leave pay shall be computed at the regular rate of
pay to which such an Employee is entitled; provided, however, that the amount
of any compensation shall be reduced by the payment received by the
Employee from workers' compensation insurance, Public Employees
Retirement Association disability insurance, or Social Security disability
insurance. r1n Employee's accumulation of annual leave will be reduced only
by the amount of annual leave for which the Employee received compensation.
252 Seniority shall apply on scheduled annual leave up to March l9t of each year.
After March lst, scheduled annual leave shall be on a first-come, first-served
basis.
25.3 A beginning Employee shall accrue annual leave at the rate of eighteen (18)
days (144 hours) per year for the iirst seven (7) years (84 successive months).
C:iy
An Employee who has worked seven (7) years (84 consecutive months) shall
accrue annual leave at the rate of twenty-four (24) days (192 hours) per year,
beginning with the eighty-fifth (85�h) month of successive employment.
An Employee who has worked fifteen (15) years (180 successive months) shall
accrue annual leave at the rate of twenty-six (26) days (208 hours) per year,
beginning with the one hundred eighty-first (181Gt) month of successive
emplo5�ment.
These rates are based on a forty-hour (40) regular workweek. The actual
amount credited to an Employee in any given pay period shall be prorated
according to the actual number of regular hours worked during that pay
period. Hours worked on overtime, callback, or standby shall not enter into the
calculation of the accrual of annual leave.
25.4 For an Employee hired on or after January 1, 1984:
The maximum total accumulation of annual leave at the end of any given year
shall be thirty (35) days (280hours).
25.5 For an Employee hired before January 1, 1984:
Vacation accrued but unused as of December 31, 1983, shall be converted by
annual leave at the rate of one (1) day of annual leave for one (1) day of
vacation. Accrued but unused sick leave as of December 31, 1983, shall be
converted to annual leave according to the following schedule:
a. lst 45 days @ 1 day of annual leave for 1 day of sick leave
b. 2�d 45 days @ 1 day of annual leave for 2 days of sick leave
c. Remainder @ 1 day of annual leave for 3 days of sick leave
In lieu of severance pay, one hour of annual leave shall be credited for each full
month of employment up to a maximum of two hundred forty (240) hours.
The total amount of annual leave credited to the Employ�ee's balance as of
January 1, 1984, shall be equal to accrued but unused vacation plus accrued
but unused sick leave converted according to the formula above plus the
amount in lieu of severance pay. If upon conversion to the annual leave plan
an Employee's accumulation of annual leave exceeds thirty (35) da5�s (280
hours), that amount shall be the maximum total accumulation (cap) for that
Employee at the end of any subsequent year.
��
25.6 An Employee who wishes to take advantage of the catch-up provision for the
City's 457 Deferred Compensation Plan may exchange as many days as desired
for cash under the following conditions:
a. The Employee's cap is reduced by the number of days exchanged.
b. In no case may the cap be reduced below thirty (35) days (280 hours).
c. An Employee taking advantage of this provision must file the
appropriate forms with the payroll division of the Employer.
25.7 Upon separation from employment with the City, an Employee will be paid one
(1) day's salary for each day of accrued annual leave remaining in the
Employee's balance.
Article 26. Holidays
26.1 Employees will accrue eight (8) hours of holiday leave for each of eleven (11)
holidays in a calendar year. If the City granted a 12th holiday to non-union
employees, it would apply to the patrol union as well.
262 In addition to the eleven holidays, Employees assigned to the Patrol Division
shall be paid at one and one-half (1- 1/s) times their base rate of pay for all
hours worked on the actual holiday between the hours of midnight and
midnight. For an5� overtime hours worked on a holiday, Employees will be paid
two (2) times their base rate of pay.
26.3 Employees, with approval, may use accumulated holiday leave time in any
hourly increment the Employee chooses.
26.4 Once a year, Employees will be paid for any unused holiday hours remaining
after Dea 31st of each year. Payment will be made at the Employee's hourly
rate in effect on Dec. 31st of the year in which the holiday hours were accrued.
Article 27. Short Term Disability
27.1 Calculation of the short-term disability benefit shall be based on an average
eight (8) hour workday. Each Employee who has successfully completed the
Employee's probationary period shall be eligible for the short-term disability
benefit. Such an Employee shall be entitled to full pay commencing on the
twenty-first (213t) consecutive working day on which the Employee is absent
(after absence for 160 consecutive regularly scheduled working hours) due to a
physician-certified illness or injury off the job, and continuing until the
Employee returns to work able to carry out the full duties and responsibilities
4�
of the Employee's position or through the one hundred tenth (110�h) working
day (880th regularly scheduled working hoiu) of absence, whichever occurs
first. Such an Employee shall also be entitled to full pay commencing on the
eleventh (llth) consecutive working day on which the Employee is absent (after
absence for eighty consecutive regularly scheduled working hours) due to a
physician-certified illness or injury on the job and continuing until the
Employee returns to work able to carry out the duties and responsibilities of
the Employee's position or through the one hundredth (100�h) working day
(800�h regularly scheduled working hour) of absence, whichever occurs first.
The amount of any compensation for the short-term disability benefit shall be
reduced by any payment received by the disabled Employee from workers'
compensation insurance, Public Employees Retirement Association disability
insurance, or Social Security disability insurance. Payment of short-term
disability benefit by the City to an Employee shall not exceed ninety (90)
working days (720 working hours) for any single illness or injury, regardless of
the number and spacing of episodes. The annual leave balance of an Employee
receiving short-term disability benefit shall not be reduced, nor shall such
Employee accrue annual leave during that period.
272 Before any short-term disability payments are made by the Employer to an
Employee, the Employer may request and is entitled to receive a certificate
signed by a competent physician or other medical attendant certifying to the
fact that the entire absence was, in fact, due to the illness or injury and not
otherwise. The Employer also reserves the right to have an examination made
at any time of any Employee claiming payment under the short-term disability
benefit. Such examination may be made on behalf of the Employer 6y any
competent person designated by the Employer when the Employer deems the
same to be reasonably necessary to verify the illness or injury claimed.
27.3 If an Employee hired before January 1, 1984, has received payments under the
injury-on-duty provisions of previous contracts, the number of days for which
payment was received will be deducted from the number of days of eligibility
for coverage under short-term disability for that same injury.
Article 28. Bereavement Leave
28.1 Bereavement leave will be granted to full-time Employees up to a maximum of
twenty-four (24) scheduled hours. Bereavement Leave is granted in case of
deaths occurring in the immediate family. For this puipose, immediate family
is considered to include: spouse, children, parents, brothers, sisters,
grandparents, grandchildren, parents in-laws, brothers in-law, and sisters in-
law.
..
282 The City will allow union employees to follow current practices for non-union
employees, which gives Employees an option to appeal directly to the City
Manager for additional time off if extenuating circumstances prevail.
Article 29. Jury Pay
It shall be understood and agreed that the Employer shall pay all regular full-
time Employees serving on any jwy the difference in salary between jury pay
and the Employee's regular salary or pay while in such service.
Article 30. Compensatory Time
Management reserves the right to approve compensatory time in lieu of
overtime pay. Compensatory time shall not be accumulated in excess of thirty
six (36) hours, and must be used within the calendar year in which it was
accumulated as determined by the Employer.
Article 31. Employee Education Program
31.1 The Employer will pay certain expenses for certain education courses based on
the following criteria:
a. The training course must have relevance to the Employee's present or
anticipated career responsibilities;
b. Attendance shall be at an institution approved by the Employer. The
course must be approved by the Chief.
c. Financial assistance will be extended only to courses offered by an
accredited institution. This includes vocational schools, Minnesota School
of Business, etc.
31.2 Programs Financial Policy
Financial assistance not to exceed the amount of two thousand, nine hundred,
twenty-five dollars ($2,925.00) per Employee per year will be extended to cover
the cost of tuition, required books or educational materials, and required fees
related to the course. Charges for student union membership, student health
coverage, mileage, parking, and other charges for which the student receives
some item or services other than actual instruction will not be paid. Upon
successful completion of the course, an Employee will be required to present to
the Chief a certification of satisfactory work. Satisfactory work is defined as
follows:
a. In courses issuing a letter grade, a C or above is required.
/'
b. In courses issuing a numerical grade, seventy percent (70%) or above is
required.
a In courses not issuing a grade, a certification from the instructor that
the student satisfactorily participated in the activities of the course is
required.
31.3 If the Employee satisfactorily wmpletes the course and provides the required
documentation, the Employee will be reimbursed for 100% of the cost of the
eligible costs (i.e. tuition, books, course fees, etc.) If the Employee fails to
satisfactorily complete the course, the Employee will not be reimbursed for
these costs.
31.4 The program will not reimburse the Employee for the hours the Employee
spends in class, only for the tuition.
3L5 Expenses for which the Employee is compensated under some other
educational or assistance program, scholarships, or programs such as the GI
bill, will not be covered.
31.6 The City will not pay tuition or other costs for those courses, which are used to
make the Employee eligible for additional salary.
31.7 The City will not reimburse the Employee for any course which is not
completed and or any course which may be a duplicate or retaken.
Article 32. Pay for Investigators, School Resource, Rental Housing Officers,
and Drug Task Force Investigators
In addition to receiving the five (5%) percent per month differential pay, Employees
assigned as Investigators, School Resource, Rental Housing Officers, and Drug Task
Force Investigators shall be eligible for the overtime provisions of the contract
applicable to Police Officers.
Article 33. BMC Case No. 85-PN-486-A, Issue 8
The Employer shall establish a minimum of two (2) months between each shift
change in the rotation.
Article 34. Waiver
34.1 Any and all prior agreements, resolutions, practices, policies, rules and
regulations regarding terms and conditions of employment, to the extent
inconsistent with the provisions of this Agreement, are hereby superseded.
�
34.2 The parties mutually acknowledge that during the negotiations, which resulted
in this Agreement, each had the unlimited right and opportunity to make
demands and proposals with respect to any term or condition of employment
not removed by law from bargaining. All agreements and understandings
arrived at by the parties are set forth in writing in this Agreement for the
stipulated duration of this Agreement. The Employee and the Union each
voluntarily and unqualifiedly waives the right to meet and negotiate regarding
any and all terms and conditions of employment referred to or covered in this
Agreement or with respect to any term or condition of employment not
specifically referred to or covered by the Agreement, even though such terms or
conditions may not have been within the knowledge or contemplation of either
or both of the parties at the time this contract was negotiated or executed.
Article 35. Duration
This Agreement shall be effective as of the first day of Jan.l, 2012, and shall remain
in full force and effect through the thirty-first day of December, 2013. In witness
whereof, the parties hereto have executed this Agreement on this day of
. 2012.
I hereby recommend approval of this agreement.
FOR CITY OF FRIDLEY
Scott J. Lund, Mayor
(Date)
William W. Burns, City Manager (Date)
Deborah K. Dahl, Human Resources Director (Date)
Donovan VV. Abbott, Public Safety Director (Date)
0
FOR LAW ENFORCEMENT LABOR SERVICES, INC.
Nick Wetschka, LELS Business Agent (Date)
Ginny Foxx, Steward
Bob Stevens, Steward
Nick Kaufer, Steward
��
(Date)
(Date)
(Date)
AGENDA ITEM
CITY COUNCIL MEETING OF
�� April 9, 2072
qiY OF
FRIDLEY
To: William W. Burns, City Manager �
From: Darin Nelson, Finance Director �� Debra A. Skogen, City Clerk�
Donovan Abbott, Public Safety Director Robert Rewitzer, Police Captain
Date
f�
Apri15, 2012
2012-13 Liquor License Renewals
The annual liquor license renewals have been reviewed by staff.
All on-sale intoxicating liquor license establishments, 3.2% on-sale and wine, and club on-sale
intoxicating liquor licenses up for renewal have all provided the necessary insurance, bond, and
CPA statement with supporting documentation pertaining to food to liquor sales as required by
City Code. After reviewing the supplied documentation, it was found these establishments have
complied with the City Code requirement of 40% food sales and 60% liquor sales, or 30% food
sales for restaurants within bowling alleys.
The police review found no major issues that would prevent these establishments from receiving
a renewal on-sale liquor license. They have provided information per establishment on the
number of calls received, number of police calls per $lOK, calls per service ratio, and whether ar
not they failed either of the two compliance checks made in 2011.
Based on the information above, staff recommends approval of the following liquor license
renewals at this time:
On-Sale Intoxicating Liquor License
• AMF Bowling Centers Inc dba AMF
Maple Lanes
• Applebees Minnesota LLC dba
Applebees Neighborhood Grill & Bar
• BAM Inc dba Shortstop - Fridley
• Billiard Street Cafe Inc dba Two
Stooges Bar & Grill
• Fridley Grill LLC dba Pickle Park
• GMME Dough Inc., dba Broadway Bar
& Pizza
• King's Restaurant
• Shorewood Inc dba Shorewood
Restaurantin Fridley
On-Sale 3.2% Malt Liquor and Wine License
• Rob Did it Again Inc dba Chris & Rob's Chicago Taste Authority
On-Sale Club Intoxicating Liquor Licenses
• Fridley American Legion • Fridley VFW
42
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'`
CfiY OF
FRIDLEY
Name
John
Kotchen
AGENDA ITEM
CITY COUNCIL MEETING OF APRIL 9, 2012
Appointment
Starting
Position Salarv
Police $20.46
Officer per hour
(2011 contract)
45
Start
Date Replaces
Apri110, Michael
2012 Morrissey
(retirement)
'= AGENDA ITEM
COUNCIL MEETING OF APRIL 9, 2012
affOF CLAIMS
FRIDLEY
CLAIMS
154527 - 154680
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AGENDA ITEM
CITY COUNCIL MEETING OF APRIL 9, 2012
°TMOF LICENSE RENEWALS
fRIDLEY
TYPE OF LICENSE: APPLICANT: APPROVED BY:
FOOD, TOBACCO & RETAIL University Holiday Market Community Development
GAS Andrea Drake Fire Inspector
Public SafeYy
Kadi Borther's, Inc. dba Amor'e Community Development
Food and Fuel Fire Inspector
Rashad H. Badac Public Safet
Holiday StationsCore #118 Community Development
James R Hupp Fixe Inspector
Public Safety
Holiday Stationstore # 188 Community Development
James R. Hupp Fire Inspector
Public Safet
Fridley BP Community Development
Youssef Ramayti Fire Inspector
Public Safet
FOOD ESTABLISHMENT Burger King #13091Heartland Community Development
Midwest, Joel Aaseby Fire Inspector
Public Safety
LTF Club Operations , dba Community Development
Life Cafe Steve Kerzman Fire Inspector
Public Safety
Maricopa Management, Inc. dba Community Development
Zantigo Donald Kaelble Fire Inspector
Public Safety
PKS, Inc. dba Subway Community Development
Peggy Schmitz Fire Inspector
Public Safety
Wong's Gourmet Community Development
Zhi hui Wu Fire Inspectot
Public Safety
Dolly Belle LLC dba Dunn Bros Community Development
Coffee Steven Gudim Fire Inspectar
Public Safety
ZZA Factary Community Development
Benjamin Bruchert Fire Inspector
Public Safety
Seoul Foods Kyung Min Ahn Community Development
Fire Inspector
Public Safety
59
TYPE OF LICENSE APPLICANT APPROVED SY
FOOD ESTABLISHMENT Taste of Thailand Community Development
Toun Thanane Fire Inspector
Pu61ic Safetv
Bon Appetit Management Community Development
Company Medtronic World Fire Inspector
Head Quarters Fedele Bauccio Public Safety
Bon Appetit Management Community Development
Company Old Central Office Pire Inspectar
Fedele Bauccio Public Safet
Quiznds Community Development
Hiep Pho Fire Inspector
Public Safety
Taco Bell Community Development
Lee Engler Fire Inspector
Public Safet �
Pa Pa Murphy's Take N Bake Community Development
Pizza Drake Enterprises Fire Inspector
Kathleen Jenni es Public Safet
Dairy Queen Community Development
Matthew D. Frauenshuh Fire Inspector
Public Safetv
Chanricleaz Pizza Community Development
Mohammed Karim Fire Inspector
Public Safety
Fridley Alano Society Community Development
John Zgainer Fire Inspector
Public Safety
Bosnian Supermarket Community Development
Salko Hoso Fire Inspector
Public Safety
Bob's Produce Ranch Community Development
Michael Schroer Fire Inspector
Public Safet �
FOOD/1'OBACCO Mr. Discount Tobacco & Community Development
Grocery Bilal Haidari Fire Inspectar
Public Safety
Wal-Mart Stores, Inc. dba Community Development
Walmart #1952 Andrea Fire Inspector
Lazenb Public Safet
Walgreen's #04697 Community Development
Michael Felish Fire Inspectar
Public Safety
. 1
HOTEL/MOTEL Budget Host Inn Community Development
Diwesh Bhakta Fire Inspector
Public Safet
Rixmann-Fridley, LLC dba Community Development
LivInn Hotels LTI7 Fire Inspector
Wa ne Rixmann Public Safety
RECYCLING & SOLID Dick's Sanitation Service, Inc. Public Safety
WASTE Brett Anderson Recycling Coordinator
Cit Clerk
JME of Monticello, Inc Public Safety
Jay Charles Morrell Recycling Coordinator
City Clerk
WTI Waste Technology Public Safety
David J. Hayes Recycling Coordinator
City Clerk
Tennis Roll Off, LLC Public Safety
William Tennis Recycling Coordinator
City Clerk
STREET VENDING Nafie Ice Cream City Clerk
Mohammed A. Na�ie Public Safety
Parks Directer
TREE REMOVAL & Arbor Aesign Tree 5ervice dba Public Safety
TREATMENT Arbor Tree Service Donald Public Works
Lawrence
Central Minnesota Tree Service Public Safety
James Savre Public Works
Eagle Tree Service Public Safety
Michael Jensen Public Works
Upper Cut Tree Service Public Safety
Andrea Messina Public Works
MOTOR VEHICLE BODY 7570 Inc. , dba Sam's Auto Public Safety
REPAIR World Samir Awaijane Community Development
Fire De artment
MASSAGE THERAPY SHARALYN L. HERMANN Public Safety
Hospital / Allina Health Cit Clerk
KAREN E SATHRE at Public 5afety
Thera eutic Massa e b Karen City Clerk
JULIE E STREETER at Public Safety
Virginia Piper Cancer Institute City Clerk
Unit Hos ital
r�
BRIDGET WICKSTROM at Public Safety
Life Balance Therapeutic City Clerk
Massa e
TOBACCO SALES Fridley Liquor Store #2 Community Development
Darin Nelson Fire Inspector
Public Safety
Fridley Liquor Store # 3 Community Development
Darin Nelson Fire Inspector
Public Safety
U5ED MOTOR VECHILES Midwest Car Search Public Safety
Scott S iczka Community Develo ment
GASOLINE SALE/ PRIVATE Determan Brownie Community Development
PUMP Krisfine Matsun Fire Inspector
Public Safety
JUNK YARD A-ABCO Fridley Auto Parts Community DevelopmenY
Derek Haluptzok Fire lnspector
Public Safety
Buildin Inspector
62
CfiY OF
FRIDLEY
AGENDA ITEM
CITY COUNCIL MEETING OF APRIL 9, 2012
LICENSES
63
i'
�
Cf1Y OF
fRIDLEY
AGENDA ITEM
CITY COUNCIL MEETING
APRIL 9, 2012
Date: April 6, 2012
To: William Burns, City Manager ��
From: Paul Bolin, Asst. Executive HRA Director
Subject: Public Hearing to Create TIF District #20 & 20A (RER)
At the City Council's February 13, 2012 meeting, a resolution was passed that
set April 9, 2012 as the date for the Council to hold the public hearing necessary
for the creation of TIF District #20 and Hazardous Substance Subdistrict (HSS)
#20A. TIF District #20 & HSS #20A are being created to fund portions of the
redevelopment activities for the BAE site located at 4800 East River Road. The
creation of this district will allow Real Estate Recycling (RER) to feasibly
redevelop this heavily polluted site by paying for some of the extraordinary clean
up and demolition costs.
Staff has been working diligently with legal counsel to ensure all of the proper
steps towards the creation of TIF District #20 & HSS #20A have been taken. A
notice of intent to create the district was provided to Commissioner Kordiak; a
draft TIF Plan was provided to Anoka County and to the School District; and
Monday night's hearing has been advertised in the Fridley Focus.
On April 5, the HRA, adopted a resolution that modified the redevelopment plan
for Redevelopment Project #1 and the TIF Plans for Districts #6-7, 9, 11-13 and
16-19 to reflect increased project costs and increased bo�ding authority within
Redevelopment Project #1. The resolution also gives their authorization for the
creation of TIF District #20, HSS #20A and adopts the TIF Plan for District #20
and HSS #20A.
Staff recommends that the Council hold the pubiic hearing for the creation of TIF
District #20 and Hazardous Substance Subdistrict #20A.
,I:U'lanningACouncil Items By Mceting�2012 Council Items�Apr�12\TIFHEAR1NGDist#20Memo.docx
Questions for use at 4-9-12 Council Meeting
1. The Councii is being asked to create TIF District #20/#20A. Are we creating two
districts? If yes, why?
9nswer: The Council is being asked to create TIF District #20 which is a
redevelopment tas increment financing district (`Redevelopment TIF Dishicf').
It is also Ueing asked to create Hazardous Substance Subdistrict #20A ("HSS").
Because of the extensive contamination and remediation issues, it is necessary to
ereate the HSS. An HSS is a subdistrict and cannot be established unless there is a
host or overlying district which, in this case, is the redevelopment TIF District.
The HSS captures a portion of the exisring taaces and the Redevelopment TIF
District caphues a portion of the new taxes.
2. The HRA will approve a resolution on Thursday authorizing the creation of a
TIF district for the BAE site. The same action modifies "the redevelopment plan
for the City and the tax increment financing plans for the existing TLF
districts". Whose redevelopment plan are we talking about? Is it the City's or
the HRA's plan?
Answer: The Redevelopment Plan is the HRA's Redevelopment Plan which
speaks to Yhe need to promote development, iedevelopment, and housing options
within the Ciry. The Radevelopment Plan alsa describes the Project Area. This is
the area in which the IIRA has the anthocity to act and the ability with City
Council approval to adopt tax increment financing districts. The City of Fiidley
has a unified ar integrated redevelopment plan wt�ich allows the IIRA maximum
flexibility throughout its Project Area. All the City/HRA TIF Districts are in a
single project area governed by a single redevelopment plan. When a new tax
increment plan is approved, all the existing plans are amended to allow for the
maximum flexibility in the use of funds and in the use of HRA authority.
3. Will this redevelopment plan modification also be part of the Council action on
4-9?
Answer: Both the HRA and the Council will be asked to approve a
redevelopment plan modification. This is the process that has been followed for
over 30 years.
4. Will Couucil also be asked to create the HSS sub district on 4-9? I didn't see this
in the HRA resolution for their 4-5 meeting.
Answer_ The Council will be asked to establish both the HSS and the TIF
Redevelopment Diskict at its April 9`h Couttcil meeting. The HRA wi11 Ue asked
to do ihe same at its April 5`h meeting.
65
5. Does the creation of the TIF District and/or the HSS Sub-district creaYe auy
financial obligation for the ITRA?
Answer: No financial oUligation is created by the establishment of the HSS oi the
T1F Redevelopment District.
6. What specific obligations does it create?
Answer: No obligations are created. Any action by the HRA is solely pennissive.
The establishment of the HSS and TIF Redevelopment District allow the HRA to
exercise a number of options. None of the options are mandated; all are
permissive and require additional approva] by tbe HRA.
Speaking of financial matters, I`ve reviewed a very length "Term Sheet". I
assume that it is very preliminary. Aas the HRA approved our initial position
on these terms? Where do we stand in negotiating the terms of the Cerm sheet
with the developer?
Answer: The Term Sheet is still being negotiated. It has gone through several
iterarions and will most likely be presented to the HRA for its approval at its May
3'� meeting.
8. R'hat have we heard from RER lately regarding the following topics:
A. Their negotiations with BAE regarding the coustruction of a 200,000
square foot building for BAE
Answer: BAE has had several intemal meetings and has developed some
initial specifications. RER is looking forvvard ta receiving those in the
coming weeks to begin looking at a potential new building for BAE. RER
expects this pxocess could take several months or more.
B. Closure on purchase of the property from BAE
Answer: RER just completed a 90 day extension of the Purchase
Agreement (the end of June 20 i2).
C. The iVIPCA Approved Responses Action Plan
Answer: RER had an initial meeting with MPCA last week and is
wotking on a Phase I. RER will develop a Phase II investigation plan
(implementarion to be funded with TIF) and then a RAP. This will take at
]east 3-5 months.
. .
D. Sources of state and federal funding for remediation of environmental
issues
Answer: REK had an initial meeting with Navy and is trying to schedule a
follow up meeting with Navy on a Memorandum of Understanding to
outline roles and responsibilities for cosfs eta This will take at ]east 90
days to complete. Grant funds will be applied for in NovemUer 2012
ideally.
E. Potential asers of the site...any commitments from any C/I entities
Answer: Other than BAfi no. There are multiple usexs out there, but until
we get tax increment funding locked down to delivar the site, we ace not
trying to maxket the site at this time. Once we get TIF deal done, we will
liire a brokerage team to market the site.
9. I'm supposing that the HRA will be assisting RER through revenues derived
from the TIF Redevelopment District as well as through the HSS Sub-district.
also understand that you will be providing revenues up fronY to RER through
the use of grants, notes and bonds. Please describe in general terms the use of
grants, notes and bonds as follows:
A. H55 Sub-district
1. Grants
Answer: The HRA is Ueing asked to provide grants not to exceed a
total of $4.OM. The grants would Ue pzovided as the phases develop.
The initial grants are smaller because there is less need in the fixst
two phases.
B. TIF Redevelopment District
1. Notes
Answer: Notes will be issued Uy the Authority for each phase. The
redeveloper will advance the funds necessary for demolition,
infrastmetuce, uriliries, relocation and site preparation. The notes to the
Redeveloper will be paid only from tax increment generated Uy the
new development.
l•)J
2. Bonds
Answer: At the HRA's discretion, it may allow the Redeveloper to
convert its revenue notes by the sale of bonds.
10. Will the IIRA be extending any direct loans to RER? If yes, how so?
Answer: At the present time neithex direct nor indirect loans are contemplated.
11. How will the RER project impaat the cash balances for the I�IRA's General Fund
and its assorted TIF District Funds?
Answer: In order for the HSS to provide grants, it will be necessary for the HSS to
Uorrow funds intemally from the HRA general fund, the revolving loan fund or
possibly other TIF Districts. This will be done through a mechanism that the HRA
has used many times and is called an interfund loan. The HSS genecates
approximately $320,000 a year in tax increment to repay any of the funds it borrows
intemally. The first �ant to RER will probably occur late tlus year and the fixst
repayments on the interfund loan, which pcovides the funds for the gxant, will be
available from the HSS starting ln July of 2013. Preliminaiy analysis suggests that the
HRA has adequate fiznds in �uhich to provide the grants.
]2. Will it leave us with any money to purchase the JLT site?
Answer: The ability of the HRA to purchase the JLT site will be a function of the
cost of this acquisition and its timing. The HRA has several options in which to rai5e
funds if it so chooses. It may sell debt, for example, based on revenues from the HSS
which are very secure because they result from valuation that is already in place.
13. My understanding is that the project will be completed in three to four phases.
Has the project phasing changed at all since the last time Council discussed this?
Answer: We are still opexating on the assumprion that there will Ue three or four
phases with multiple buildings within each phase.
14. Have there been any changes in RER`s projected contributions to this project?
Answer: The projected contribution is still the acquisition price of approximately
$15.OM plus other matches for grants.
15. Have there been auy changes in our projection of project benefits?
Answer: w'e are srill anticiparing that upon conclusion of the project we will have a
site cleaned up to the specifications approved by the MPCA which will ultimately
•:
result in a site being valued between $70 M and $80 M containing approximately 1.5
million square feet of new development.
16. What else should we tell Council?
Answer: This may be the most difficult site the HRA and the City have evei
undertaken to xedeve]ap. It creates minimal risk to the City and the HRA Uut
provides an enoxmous opportunity to improve and xedevelop an area that will benefit
the City foi decades.
[The answess to question #8 wexe piovided by Real Estate Recycling. The answers to all
other questions were provided by Monroe Moxness Berg.]
MMB: 4837-8296-5519, v. 1
� �
J
'
qiY OF
FRIDLEY
Date:
To:
From
AGENDA ITEM
CITY COUNCIL MEETING
APRIL 9, 2012
April 5, 2012 �/
William Burns, City Manager�
1°
Paul Bolin, Asst. Executive HRA Director
Subject: Resolution to Create TIF District #20 A (RER)
In addition to holding a public hearing on the creation of TIF District #20 and
#20A, the Council is required to adopt a resolution authorizing the creation of the
District and Subdistrict. Adopting the resolution will allow the developer and HRA
to move fonvard with the creation of a development agreement.
The removal of the existing building, addition of 1,454,960 square feet of new
office/showroom/industrial space and the accompanying jobs, will be a welcome
addition to the City of Fridley.
Staff recommends that the Council adopt the attached resolution allowing for the
creation of TIF District #20 and Hazardous Substance Subdistrict #20A.
1:APlnnningVCouncil Items By Mee5ng�2012 Council Items�Ap��[012\Resolution Approval MemoDist�20Memo.docx
City of Fridley
Anoka County, Minnesota
RESOLUTION NO. 2012 -
A RESOLUTION MODIFYING THE REDEVELOPMENT PLAN FOR
REDEVELOPMENT PROJECT NO.1 AND THE TAX INCREMENT FINANCING
PLANS FOR TAX INCREMENT FINANCING DISTRICTS NOS. 6-7, 9, 11-13 AND
16-19 TO REFLECT INCREASED PROJECT COSTS AND INCREASED BONAING
AUTHORITY WITHIN REDEVELOPMENT PROJECT NO. 1, CREATING TAX
INCREMENT FINANCING DISTRICT NO. 20 AND ADOPTING A TAX 1NCREMENT
FINANCING PLAN RELATING THERETO AND CREATING fIA7.ARDOUS
SUBSTANCE SUBDISTRICT NO. 20A AND THE ADOPTION OF A TAX INCREMENT
FINANCING PLAN THERETO
BE IT RESOLVED by the City Council (the "Council"} of the City af Fridley, Minnesota (the
"Cicy"), as follows:
Section l. Racitals.
1.01. It has been proposed by the Housing and Kedevelopment Authority (the "Authority") that the
Council approve and adopt the proposed modifications to its Redevelopment Plan for Redevelopment
Project No. 1(the "Project Area") reflecting increased project costs and increased bonding authority,
pursuant to and in accordance with Minnesota Statutes, Sections 469.001 to 464.047, inclusive, as
amended and supplemented from time to time.
].Q2. It has been further proposed by the Authority that the Counci] approve and adopt the proposed
modiiications to the Tax Inerement Financing Plans (the "Existing Plans") for Tax lncrement Financing
Districts Nos. 6-7, 9, 11-13 and 16-19 (the "Existing Districts") reflecting inereased project costs and
increased bonding authoriry within the Project Area, pursuant to Minnesota Statutes, Section 469. ] 74
through 469.1799, inclusive, as amended and supplemented from time to time.
1.03. It has been further proposed by the Authority that the Council approve the creation of
proposed Tatc Inerement Financing District No. 20 (tha "Redevelopment DistricP') and Hazaxdous
Substance Subdistrict No. 20A (the "SuhdistricP') (collectively the "Pxoposed Districts") and adopt
proposed Tax Increment Financing Plans (the "Proposed Plans") relating tl�ereto, pursuant to and in
accordance with Minnesota Statutes. Section 469.174 to a69.1799, inclusive, as amended and
supplemented frocn time to time.
1.04. The Authority has caused to be prepared, and this Council has investigated the facts with
respect thereto, a modified Redevelopment Plan for the Proj ect Area and modified Existing Pl ans for
the Existing Districts reflecting increased project costs and i�creased bonding authority within the
Project Area and Proposed Plans for the Proposed Districts, defining more precisely the property to
be included, the public costs to be incurred, and other matters relating thereto.
71
Resolution No. 2012 - Page 2
1.05. The Council has performed all actions required by law to be performed prior to the approval
and adoption of the modifications to the Redevelopment Plan and Existing Plans and the appxoval
and adoption of the Proposed Plans.
1.0G. The Council hereby determines that it is necessary and in the best interests ofthe City and the
Authority at this time to approve and adopt the modifications to the Redevelopment Plan and
Existing Plans reflecting increased project costs and increased bonding authority within the Project
Area, to create the Proposed Districts and to approve and adopt the Proposed Plans relating thereto.
Section 2. General Findings.
2.01. The Council hereby finds, determines and declazes that the assistance to be pxovided through
the adoption and implementation of the modified Redevelopment Plan , modified Existing Plans and
Proposed P1ans (collectively, the "Plans") are necessary to assure the development and
redevelopment of the Project Area.
2.02. The Council hereby finds, determines and declares that the Plans confoim to the general plan
fox the development and redevelopment of the City as a whole in that they are consistent with the
City's comprehensive plan.
2.03. The Counci] hereby finds, determines and declares that the Plans afford maximum
opportunity consistent with the sound needs of the City as a whole for the development and
redevelopment of the Project Area by private enterprise and it is contemplated that the development
and redevelopmeni thereof �vill be carried out pursuant to redevelopment contracts wiih private
developers.
2.04. The Council hereby fmds, determines and declares that the niodification, approval and
adoption of the Plans is intended and, in the judgment of this Council, its effect will be Co promote
the purposes and objectives specified in this Section 2 and otherwise promote certain public purposes
and accomplish certain objectives as specified in the Plans.
2.05. The Council hereby finds, determines and declares that the City made the above findings
stated in this Section 2 and has set forth the reasons and supporting facts for each determination in
the Plans and Exhibit A to this Resolution.
Section 3. Specific Findings for the Redevelopment District.
3.01. The Council hereby finds, determines and declares that the Redevelopment Dish-ict
constitutes a"tax increment financing district" as defined in Minnesota Statutes, Section 469.174,
S ubd. 9, and further constitutes a"redevelopment districY' as defined in Minnesota Statutes, Section
4fi9.174, Subd. 10.
3.02. The Council hereby finds, determines and declares that the proposed deve]opment or
redevelopment in the Redevelopment District, in the opinion of this Council, would not reasonably
be expected to oocur solely through private investment within the reasonably foreseeable future and,
�2
Resolution No. 2012 -
therefore, the use of taac increment financing is deemed necessary.
Page 3
3.03. The Council hereby finds, determines and declares that the increased market value of a
project not receiving tax increment assistance would be less than the increased market value of a
project receiving tax increment assistance after deducting the present value of projected tax
increments for the maximum duration of the Redevelopment District.
3.04. The Council hereby finds, determines and declares that the expenditure of tas increment
within the Redevelopment District serves primarily a�ublic purpose.
3.05. The Council hereby finds, determines and declares that the City made the above findings
stated in this Section 2 and has set forih the reasons and supporting facts far each determination in
the Plans and Exhibit S to this Resolution.
Section 4. Specific Findings for the Subdistrict.
4.0 L The Council hereby finds, determines and declares that the Subdistrict constitutes ahazardous
substance subdistrict as defined in Minnesota Sfatutes, SecCion 469.174, Subdivision 23.
4.02. The Council hereby finds, determines and declares that the proposed development or
redevelopinent in the Subdistrict, in the opinion ofthe Council, would not occur solely through private
inveshnent within the reasonably foreseeable future and, therefora, the use oftaY increment financing is
deemed necessary.
4.03. The Council hereby finds, determines and declares that the Subdistrict is not larger than, and the
period of time during which tas increments aze elected to be received is not longer than, that which is
necessary, in the apinion of the Cauncil, to provide for the additional costs due to the designated
bazacdous substance site.
4.04. The Council hereby finds, determines and declazes that the expenditure oftaac increment within
tlie Subdistrict serves a primarily public purpose.
4.0_5. The C�uncil hereby finds, determines and declares that the City made the above findings stated
in this Section 4 and has set forth the reasons and supporting facts for each determination in the
Subdistrict Plan and Exhibit C of this Resolution.
Section �. Approvals and Adoptions.
5.01. The modifications to the Redevelopment Plan reflecting increased project costs and increased
bonding authority within the Project Area are hereby approved and adopted by the Council of the
City.
5.02. The modifications to the Existing Plans reflecting increased project costs and inereased
bonding autharity within the Project Area aze hereby approved and adopted by the Council of the
City.
73
Resolution No. 20] 2-_ Page 4
5.03. The creation of the Proposed Districts within the Project Area and the adoption of the
Proposed Plans relating thereto are hereby approved by the Council of the City.
Section 6. Filing of Plans.
6.0] . Upon its approval and adoption of the modified Redevelopment Plan for the Project Area, the
City shal l cause said Redevelopment Plan to be filed with the Minnesota Department of Revenue, tY�e
Office of the State Auditor, and Anoka County.
6.02. Upon its approval and adoption ofthe Redevelopment Plan for the Redevelopment District, the
City shall cause said Redevelopment District Plan to be filed with the Mimiesota Department of
Revenue, the Office of the State Auditor, and Anoka County.
6.03. Upon its approval and adoption of the Subdistrict Plan for the Subdistnct and the approval of
the Development Action Response Plan by the Pollution Control Agency, the City shall cause said
Subdistrict Plan to be filed with the Minnesota Depamnent of Revenue, the Office of the State Auditor,
and Anoka County.
PASSED AND ADOPTED BY THE COUNCIL OF TAE CITY THIS DAY OF
, 2012.
ATTEST:
DEBRA SKOGEN - CITY CLERK
74
SCOTT LT_JND - MAYOR
Resolution No. 2012 - _
GENERAL FINDINGS
Page 5
EXHIBIT A
The reasons and facts supporting the findings for the modification ofthe Plans for the Project Area,
Existing Districts and Proposed Districts pursuant to Minnesota Statutes, Section 469115,
Subdivision 3, are as follows:
]. Finding that the assistance to be provided through the adoption and implementation of
the Plans is necessary to assure the developmeut and redevelopment of the Project Area.
Tl�e tax increment assistance resulting from the implementation of the Plans is necessary for the
proposed project to proceed. Please refer to Exhibit XXI-D of the Redevelopment Plan and XXII-D
of the Subdistrict Plan.
2. Finding that the Plans conform to the general plan for the development and
redevelopment of the City as a whole in that they are consistent with the City's Comprehensive
Plan.
The Council has reviewed the Plans and has determined that they aze consistent with the Gity's
comprehensive plan.
3. Finding that the Plans afford maximum opportunity, consistent with the sound needs of
the City as a whole, for the development and redevelopment of the Project Area by private
enterprise, and it is contemplated YLat the development or redevelopment thereof will be
carried out pursuant to development contracts with private developers.
Please refer to the attached Exhibit B and C respectively for specific information relafing to the
Proposed Districts.
4. Ft'nding that the approval and adoptiou of the Plans is intended and, in the judgment of
this Council, its effect will be Yo promote the public purposes and accomplish the objectives
specified in the Plans.
Thc tax increment that will be generated due to the approval and adoption of the Plans will assist
in financing the public improvements and eligible expenses as detailed in the Plans.
75
Resolution No. 2012 - _
SPECIFIC FINDINGS FOR THE REDEVELOPMENT DISTRICT
Page 6
EXHIBIT B
In addirion to the findings included in Exhibit A, the reasons and facts supporting the additional
findings for the Redevelopinent Plan for the Redevelopment District pursuant Co Minnesota Statutes,
Section 469175, Subdivision 3, are as follows:
l. Finding that Che Redevelopment District is a"redevelopment district" as defined in
Minnesota Statutes.
The Redevelopment District consists of 3 parcels totaling approximaiely 13b acres. Of this
acreage, it has been determined that parcels comprising ap�roximately 122 aeres aze occupied by
buildings, streets, utilities, paved or �-avel parking lots or similaz structures. This 90% area coverage
exceeds the 70% coverage test required by Minnesota Statutes, 5ection 469.174, Subdivision 10(1).
Additionally, the building wbich is approximately 2,000,000 square feet and is located on t�mo parcels
has been determined to be "structurally substandard" because it contains defeets in structural elements
or a combination ofdeficiencies in essential urilities and facilities, light and ventilation, fireprotection
including adequate egress, layouY and condition of interior partitions, or similar factors, which defects
or deficiencies are of sufficient total significance to justify substantia] renovation ar clearance. This
btrilding which by itself is 100% ofthe improvements satisfies the requirements ofMinnesota Statutes,
Section 4f�9174, 5ubdivision 10(1) which requires that over 50% of buildings, not including
outbuildings, must be found "structurally substandard °' lt has further been determined that these
conditions are reasonably distributed through the Redevelopment District These findinas and the
conclusion that the Redevelopment District qualifies under the statutory criteria and formulas for a
redevelopment tax uicrement finaneing district are further described in a report prepared by LHB dated
January 31, 2012 (the "LHB ReporP').
2. Findiug that the proposed development or redevelopment, in the opinion of the Council,
would not reasonabiy be expected to occur solely through private investment within the
reasonably foreseeabte future and, therefore, the use of tax increment Yinancing is deemed
necessary.
Development activities proposed to occur in tha Redevelopment District includes land acquisition,
demolition of the building, remediation of the Site and construction of approximately 1,SQ0,000
square feet of office, showroom, warehouse uid bulk warehouse Yacilities in approximately 12
buildings. Upon completion of the development, it is anticipated that the City's tax base will
iucrease by approximately $60,000,000.
City staffhas reviewed the estimated development costs and the available methods of financing and
has determined that tax increment assistance is necessary to make the redevelopment project
economically feasible and to allow the Redeveloper to pxoceed at this time.
76
Resolution No. 2012 -_ Page 7
3. Finding that the increased market value of a project not receiving tax increment
f'inancing assistance would be less than the increased market value of a project receiving tax
increment financing assistance after deducting the preseat value of the projected tax
increments for the maximum duration of the Redevelopment District.
The original market value of the Redevelopment District is approximately $15,000,000. Ciry staff
has determined that without tax increment assistance these parcels would not be developed witlun the
foreseeable future and that only minimal remodeling would probably occur. Therefore, ifthere was an
increase in market value it would be minimal.
City staff has further determined thaY with tax increment assistance it is possible to construct almost
1,500,000 square foot office showroom, officelwarehouse and bulk warehouse development wifli an
estimated market value of approximately $75,OQ0,000 After deducting the original mazket value of
$15,000,000 from the estimated market value of $75,000,000, Ciry staf�has further determined that the
increased market value that could reasonably be expected to occur from a project receiving taY
increment assistance would be approximately $60,000,000.
City staffhas furtl�er determined that the total amount of tax increment generated over the 25 year tertn
oP flie Redevelopment District approximates $48,500,000. Assuming the same term and a present
value rate of 6.0%, thepresent value of $48,SOO,Q00 approximates $17,000,000. After deducting the
pcesent value of the tax inerement ($17,000,000) from the increasein estimatedmarketvalue occurring
as a result of utilizing taY increment assistance ($60,000,000), the net increase in estimated market
values approximates $43,OOQ000.
Ciry staff has further deYermined that the inereased mazket value of the site that could reasonabiy be
ehpected to occur without the use of taY increment financing ($0) is less than the increased macket
value of the siYe occurring with the use oftax increment financing after subtracring the present value of
the projected tax increments for the maximum duration ofthe Redevelopment District ($60,000,000).
Further information supporting this Finding is attached as Schedule 1.
4. Finding that expenditure of tax iucrement serves a primarily public purpose.
The expenditure of tax increment is not intended as a private benefit and any such benefit is
incidental. Public benef ts resulting from the proposed project inelude (i) an inerease in the State and
Ciry tax bases, (ii) tl�e acquisition and redevelopment ofproperty which is not now in its highest ar
best use, (iii) demolition and removal of an existing substandard and blighted structure, and (iv)
remediation of contaminated property.
%%
Resolution No. 2012 -
SPECIFIC FINDINGS FOR THE SUBDISTRICT
Page 8
EXHIBIT C
In addition to the findings included in Exhibit A, tha reasans and facts supporting the additional
findings for the Subdistrict P1an for the Subdistrict pursuant to Minnesota Statutes, Section 469.175,
Subdivisions 3 and 7, are as follows:
1. Finding that the Subdistrict is a"hazardous substance subdistrict" as defined in
Minnesota Statutes.
The Subdistriet consists of 3 parcels which the Council reasonably expects will be designated as
a I�azardous substance site as defined in Minnesota Statutes, Section 469174, Subdivision 16 and will
be included in a Development Action Response Plan. The Council will certify to the County Auditor
that it will enter into an agreement(s) providing for the removal or remedial actions as specified in its
Development Action Response Plan. The Council acknowledges that the parcels to be included in the
Subdistrict will not be certified until the Development Action Response Plan has been approved.
2. Finding that the proposed development within the Subdistrict, in the opinion of the
Council, would not occur solely through private investment within the reasonably foreseeable
future and, therefore, the use of tas increment financing is deemed necessary.
The activities expected to occur within the Subdisri-ict include the removal and/or remedial
actions necessary to be undertaken and completed in order to facilitate the construction ofthe housing
units, office space, retail and restaurant space as described in Item 2 of Exhibit B and in the Proposed
P]ans.
City staffhas received apreliminary overview of the estimated costs for the necessary removal
a�1d/or remedial actions and the available methods offinancing these activities. Although some ofthe
tax increment generated from the Redevelopment District may assist with tha remediation and removal
efforts, addiCional assistance is required far these extensive costs. Without the addiTional tax increment
generated by the Subdistriet,
unfeasible and cannot proceed.
D of the Subdistrict Plan.
the redevelopment of the Redevelopment District is eeonomically
Addifional background supporting this Finding are included in Exhibit
3. Finding that other parcels not designated as hazardous substance sites are expected to
be developed together with the designated hazardous substance site.
All parcels are to be included in the Subdistrict and it is anticipated that they will all be
designated as a hazardous substance site. In the event a parcel(s) is not designated a hazardous
substanca site, it will be developed with the adjacent pazcels within the Subdistrict as allowed by
Minnesota Statutes, Section 469175, Subdivision 7.
4. Finding that the Subdistrict is not larger than, and the period of time during which
tax increments are elected to be received is not longer than, that which is necessary, in the
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Resolution No. 2012 - _
Page 9
opinion of the Council, to provide for the additional costs due to the designated hazardous
substance site.
The Council has determined that the pazcels ]ocated within the Subdistrict require remediation
and removal acrions in order for the redevelopment of the District to pmceed as proposed. The Council
has also determined that the duration of the Subdistrict will extend only as long as is required to finance
thE remediation, removal and related activities.
5. Finding that the expenditure of tax increment serves a primarily public purpose.
The expenditure of tax increment is not intended as a private benefit, and any such benefit is
incidentaL The principal intent for the tax increment expenditures includes the removal and
remediation actions needed, and associated costs, for the pamels included in the Subdistrict. See also
Exhibit B, Item 4.
79
Resolution No. 2012 - _
NUMERICAL `BUT FOR"
Page 10
SCHEDULE 1 TO EXHIBIT B
ESTIMATED MARI�ET VALUE INCREASE FOR A DEVELOPMENT PROJECT
WITHOUT TIF ASSISTANCE
Witl�oui tvc increment assistance the parcels would not be developed within the foreseeable future
and only minimal reinodeling may occur
EstiniatedMarket Value ........................................................................... $ -�-
Original Market Value .............................................................................. $ 15,OOQ000
Increased Market Value ............................................................................ $ -�-
ESTIMATED MARKET VALUE INCREASE FOR A DEVELOPMENT PR03ECT
WITH T1F ASSISTANCE
With tax increment assistance it is proposed that approximately 1,500,000 square feet office
sho���room, office/warehouse and bulk �i-arehouse development in 12 buildings be constructed in at
least four phases over 10 years.
Estimated Market Value ...........................................
Original Market Value ..............................................
Increased Market Value ............................................
Less: Present Value of the Tax Increment
generated at 6.0°/o for the duration
of the Proposed Kedevelopment District .....
.._ ......................... � 75,000,000
............................. $ 15,000,000
............................. $ 60,000,000
............................. $ 17,000,000
Net Increased Market Value ...................................................................... $ 43,000,000
MMB: 4823-2570-7023, v. 1
�• 1
SECTION XXI
TAX INCREMENT FINANCING PLAN FOR
TAX INCREMENT FINANCING DiSTRiCT NO. 20
(RER PROJECT)
Subsection 21.1. Statement of �bjectives. See Section l, Subsection 1.5,
Statement of Qbjectives.
Subsection 21.2. Modified Redevelopment Plan. See Section I, Subsections 1.2
through 1.15.
Subsection 21.3. Parcefs to be Included. The boundaries of Tax Increment
Financing District No. 20 (the "T1F DistricY'} are described on the attached Exhibit XXI-A
and illustrated on Exhibit XXI-B.
Subsection 21.4. Parcels in Acauisition. 7he Authority may write down or
acquire and reconvey real property, or interests therein, within this TiF District or
elsewhere within the Project Area, at the time or times as the Authoriry may determine
to be necessary or desirable to assist or implement development or redevelopment
within 1he Project Area or the TIF District. The Authority may acquire any of the parcels
described on Exhibit I-A and ifiustrated on Exhibit I-B by gift, dedication, condemnafion
or direct purchase from willing sellers in order to achieve the objectives of the
Redevelopment Plan or the TIF Plan.
5ubsection 21,5. Development Activitv for which Contracts have been Siqned.
As of the dafe of adoption of the TIF Plan, the Authority intends to enter into a
Redevelopment Contracl with Real Estate Recycling LLC, a limited liability company for
the activities discussed below.
Subsection 21.6. Specific Development Expected to Occur. At this time it is
anticipated that the current parcels will be redeveloped including demolition and
removal of blighted and substandard structures and contamination remediation and the
construction of:
Phase l: Approximately 65,090 square feet of o�ce showroom, 100,000 of
office/warehouse and 2oD,Q00 of bulk warehouse space to be constructed
in 2012-2013;
Phase II: Approximately 65,000 square feet of office showroom, 100,000 of
office/warehouse and 200,000 of bulk warehouse space to be constructed
in 2013-2015; and
Phase III: Approximately 125,Q00 square feet of office showroom, 200,000 of
officelwarehouse and 400,000 of bulk warehouse space to be constructed
in subsequent years.
21-1
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Upon completion of fhe redevelopment, an aggregate of 1,454,960 square feet of o�ce
showroom, o�ce/warehouse and bulk warehouse will be constructed with an estimated
market value of approximately $72.7 M.
Subsection 21.7. Prior Planned Improvements. After due and diiigent search,
the Authority has determined that no building permits have been issued during the
eighteen (18) months immediately preceding approval of the TIF Plan by ihe Authority.
Subsection 21.8. Fiscal Disgarities. The Council hereby elects the method of
tax increment computation set forth in Minnesota Statutes, Section 469.177,
Subdivision 3, clause (a) if and when commerciaUindustrial development occurs within
the TI F aistrict.
Subsection 21.9. Estimated Public Improvement Costs, The estimated public
improvement costs, including interest thereon to be incurred for the benefit of and within
the TIF District and the Project Area are set forth on Exhibit I-C.
Subsection 21.10. Estimated Amount of Bonded Indebtedness. It is anticipated
that approximately $20,1 M of bonded indebtedness may be incurred with respect to
this portion of the Project Area.
Subsection 21.11. 5ources of Revenue. Anticipated revenue sources to assist
in the financing of the pubfic improvement cosis, pursuant to Subsection 21.9, above,
include (1) general obligation and/or re�enue tax increment obligations with interest; {2)
the direct use of tax increments; (3) the borrowing of available funds, including without
limitation interest-bearing City short-term or long-term loans; (4) interfund loans or
advances; (5) interfund transters, both in and out; (6) land sale or lease proceeds; (7)
levies; (8) grants from any pubiic or private source; (9) developer payments; (14) loan
repayments or other advances originally made with tax increments as permitted by
Minnesota Statutes; and (11) any other revenue source derived from the City's or
Authority's activities within the Project Area as required to finance the costs as set foRh
in Exhibit I-C. All revenues are available for tax increment eligible expenses within the
Project Are as allowed by Minnesota Statutes.
Subsection 21.12. Estimated Oripinal and Ca�tured Tax Capacities. The tax
capacity of all #axable property in the TIF district, as most recenily certified by the
Commissioner of Revenue of the State of Minnesota on January 2, 2012, is estimated
to be $361,468.
The captured tax capaoity of the TIF District upon comptetion of the proposed
improvements on Ja�uary 2, 2014 is estimated to be $1,153,212. The Authority intends
to utilize 100% of the captured tax capacity for the duration of the TIF District for
purposes of determining tax increment revenues.
Subsection 21.13. Tax tncrement. Annual tax increment generated from the TfF
District has been caiculated at approximately $1,300,420 upon the initial completian of
21-2
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the improvements. This estimate is provided on the attached Exhibit XXI-C. Revenue
has also been projected for the duration of the T1F District and is shown on Exhibit I-C-
15.
Subsection 21.14, Local Tax Rate. The estimated pay 2012 lacal tax rate is
1.12765.
Subsection 21.15. ype of TIF District. The TIF District is a redevelopment
district pursuant to Minnesota Statutes, Section 469.174, Subdivision 10.
Subsection 21,16. Duration of TIF District. The duration of Yhe TIF District is
expected to be twenty five (25) years from receipt of the first tax increment, The date af
receipt of the first tax increment is estimated to be July, 2015. Thus, it is estimated that
the TIF District, including any modifications for subsequent phases or other changes,
would terminate in the year 2040.
Subsection 21.17. Estimated Imaact an Other Taxing. Jurisdictions. The
estimated impact on other taxing jurisdictions assumes construction would have
occurred without the creation of the TIF Qistrict. If the construction is a resuit of tax
increment financing, the impact is $0 to other entities. Notwithstanding the fact thaf the
fiscal impact on the other taxing jurisd+ctions is $0 due to the fact that the financing
would not have occurred without the assistance of the Authority, the attached Exhibit
XXI-E reflects (I) the estimated impact of the TIF Qistrict if the "but for" test was not
met; {ii) the estimated amount of tax increment generated annually and over the
duration of the TIF District�, and, (iii) the estimated amount of tax increment attributable
to the County, School District and other taxing districts.
At this time the Authority anticipates there will be no impact on City services due
to the creation of the TIF District. Additionally, since the Ci1y has no current plan to
issue general obligation debt for project costs, it further anticipates that there will be no
impact on its borrowing costs due to the creation of the TIF Dislrict. Please refer to
Exhibit XXI-D for the narrative "but for" analysis.
Subsection 21.1 B. Modification of the TIF District and/or the TIF Plan. As of April
9, 2012, no modifications tv the TIF District or the TIF Pfan have been made, said date
being the date of initial approval and adoption thereof by the City Council.
21-3
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EXHIBIT XXI—A
PARCELS 70 BE INCLUDED
27-30-24-13-OOD2, 27-30-24-42-0002, 27-30-24-a3-0002
and all easements, rights-of-way and adjacent roads and streets
XXI-A-1
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EXNIBIT XXI—D
"BUT FOR" ANALYSIS
The Site is approximately 136 acres and contains a building that is 2,000,000 square
feet. The Site is best known as the FMC Corp. Site. From 1941-1964, a naval
ordinance manufacturing complex operated the Site, from 1945-1969, a southern
portion of the Site was used for burning and disposing of waste; in 1981, an
investigation revealed contaminaiion and a history of waste disposal; in 1983, a cleanup
of the Site began, The southern portion was listed on the National Priorities List.
Attached is the cover page and the Executive Summary of the Fourth Five-Year Review
Report dated September 30, 2009.
The building is substandard as shown by the Code/Condition Deficiency Report
prepared by LHB, Inc. dated January 31, 2012.
In addition, the building has limited uses and is obsolete by current warehouse
standards.
Real Estate Recycling is proposing to demolish the building, remediate the Site and
construct approximately 1,500,009 square feet of office, showroom, warehouse and
bulk warehouse facilities in approximately 12 buiidings.
Because of the very substantial demolition and remediation costs, it is not possible to
redevelop the Site without the use of tax increment.
MMB: 4836-3509-1982, v. 1
XXl-D-1
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TION DEFICIENCY REPOI2T
Januairy 31,2012
Property Address; Q850 East River Road, Fridley, MN
PIN: 27-30-24-13-0002 & 27-30-24-42-0002
Inspection Date(s) & Time(s): December 2, 20] I- 8:00 e.m,
Inspection Type: interior & Exterior
Summary of Deficiencies: It is our professional opinion that this building is Su6sfandard because:
- Building Code deFciencies total more than 15% of replacement cost.
- Substantial rcnovation is required to con'ect Conditions found.
�stimated Reptacement Cast: $ 179,468,500
Estimated Cost to Correct Building Code Deficiencies: $ 40,475,000
Percentage of Replacement Cosi: 23%
Descrivtion of CandiUon Deficiencies
Minnesota Stawtes, Section 469.174, Subdivision ]0, states thai a building is Structurally Substandazd if it
contai�s "defects in structural elements or a combination of deftciencies in essential utilities and facilities, light
and venUlation, fire protecfion including adequata egress, layout and condition of interior partitions, or similar
factors, which defects or deficiencies aze of sufficient total significance to justify substantial renovation or
clearance."
A. De%cts 3n Structural Elements
1. Roof shvcture inadequate to support reroofing with correct amount of slope and insulation.
2. Roof structure under-sized to support snow drift loads.
3. Columns and roof structure are not fire-rated.
B. Combination aY'DeYiciencies
1. Essetrtial Utilitles and Facilities
a. The HVAC system is piece-ineal and of different ages, some elements dating from die 40s. Many uf
the older units appeaz to 6e aged and in need of replacement or repair.
2. Light arid Ventilation
a. Many light fixtures use 1'121amps, scheduled to ba phased ont by DOE mandate.
3. Fire ProtectionlAdeauate Earess
a. Two stairs are too steep and have inadequate handrails.
b. Three stairs have inadequate handrails.
c. Unlawful mechanicaVelectrical penehation a[ one stair enclosure,
d. At least three stair enclosnres exit into the factory space, instead of into an acceptable exit passage,
e. Mechanical rooms appear ta be i�adequatety separated from rest of construction.
G. Lavout and Condition of Interior Partitions/Materials
a, Interior finishes have been damaged by water leaking from roof in some locations.
b. Office building win� 6adly damaged from mold infesYation.
c. Office wing Finishes completely gutted, lighting removed and HVAC distribution system partialty
removed.
XXI-D-2
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5. Exterior Conshuction
a. Roofing appeais cracked and worn.
b. Roof slope inadequate, resulting in ponding and leaking.
c. Office bttilding wing badly damaged from mold infestation.
Description of Code De6ciencies
1. Steel suucture is exposed and unprotected. In order [o meet allowaUla azea requirements in tha code,
exposed steel columns and roof structure must be have at least 1-hour fire resistancc.
2. Approximately 4Q% of tlie building is without required sprinklet system.
3. Stair guaidrails at five locations do not meet code. Guardrail picket spacing is greater than 4".
4. Stair handrails are too low in five ]ocations and lack extensions.
5. Stair risers ii� two locations exceed the maximum allowable 7" and trends are less than the minimum
allowable 1)"
6. There are unprotected penetrations in reqaired fire-rated walls pnd ceilings (stair enclosure and
mechanicat room).
7. Roof slopes do not meet code for adequate drainage.
8. According to a roof survey conducted in the mid-80s, most of the roof ts overstressed, meaning it woidd
be unable to support the tapered insulation necessary to correct roof slopes. Although changes in the code
have lessened roof design loads since the survey was conducted, a requirement to accommodate snow di�ft
loads has been added. The result, in a building such as this with many clerestory areas that would cause
drifting on lower roofs, is a greater design load in affected areas. It is estimated that 7S% of the roof is
stivcturally inadequate due to snow drift loading,
9. One ofthe elevators is without accessibie controls.
]0. T�avel distance &om buiIding interior to public way exceeds allo�+�able maximum.
Enerev Code
In addition to the building code deficiencias ]isted above, the existing buildivg dces not comply with the current
energy code.'I'hase deficieacies are not included in the esUmated costs to correct code deficiencies and are not
considered in determining whether ornot tha building is substandard;
- Building's wall insulation does not meet current code requirements.
- Building's heating and cooling is not as efficient as ciurent energy code would require.
- Building's lighting in majority of office areas not energy efficient.
M;11 I Pro�1110621 W00 DesignW06 Reports\'flFlSu6standazd 6uilding Repon BAE i I 1228.dacx
XXI-D-3
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,4,pproved by:
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_.--�-'�~R�h�C�Karl
Director
Supe.rftu�d Division
EPAII YRfeI�g�i�oNn p6��Ryacryvrds Clr.
I IINI IIA ml l IW �II�I O�� �
N2T66
Five-Year Review Report
Fourth Five-Year Review Report
For
FMC Corporation (Fridley Plant)
Fridley
Anoka County, Minnesota
September, 20Q9
PREPARED BY:
Minnesoia Pollution Control Ageacy
St. Pau2, Minnesota
As Modified by
The United States Environtnental Protection Agency
Region 5
Chicago, Illinois
Date:
XXl-D-4
92
3� 0
Executive Summary
On behalf of the United States Environmenial Protection Agency {US EPA), the Minnasota
Pollution Control Agency (MPCA) hns campleted a five-year review of the remedial action (RA)
implemented at the FMC Site (Site) lacated in Fridley, Minnesota. This 'ss the fourth Five-year
review for the Site which evaluates the effactiveness of the RA to date.
Historically, industrial and hazardous waste generated from naval ordnance manufactwing
including plating wastes, paint, paini sludges, oils, bottom ash and chlorinated and non-
chlorinated solvents was disposed of'at the Site. Initial remedia] actions included construction of
an on-site conlaiiunent and ireatment faci)ity (CTF) to treat and contain soils contaminated with
volatile organic compounds (VOCs) in 1983, Groundwates contamination was addressed
through a groundwater ezlraction system, installed in 1987, and a monitoring well network, The
gmandwater extracuon system condnues to operate and VQCs remain in the groundwater at and
down gradient of the Site.
Protectiveness Sta[ement(s):
The protectiveness of the cunent remedy as concluded by this five-year review is as Follows:
Groundwater
The remedy selected ro address groundwater contarnination is currently protective of human
healih and the environment in the short temi . In order for tha remedy to be protective in the
long-term the following actions need to be completed:
• The monitoring well network must be expanded and the groundwater
plume must be fully defined;
• MCLs or health based cleanup values are to be achicved at the Site
boundary;
• Updates to ihe Site monitoring plan naed to ba completed;
• The capture of the groundwater extraction system must be further
evaluated;
• A co.mplete risk assessment is to be conducted with regard to the seep;
• EfFective institutional controls are in place at and neaz the site that are
protective in the short term and apply to a(1 activizies that may lead to
potential exposure; In order to nssure iong term protectiveness, additional
instituNonal controls on BAE property and nearby property will be
evaivated.
• Remediai ac6on addressing exposure at che seep must be comp{eted (if
" See AQpendix A for MPCA's position on the shoR term protectiveness.
t0
XXI-D-5
93
determined to be necessary by the risk assessment);
• Further evaluation needs to be conducted for additional remedia] action
utilizing data coltected from additional investigations;
• Improvements to data evaluation and presentation within Annual
Monitoring Report to be made,
5oi1
Soil removal actions were conducted prioz to implementation of the RQD and decision
dor,uments fbr the Site. The US EPA and MPCA have found soil removat actions to be
ptt�tective of human health and the environment. Continued monitoring of CTF monitoring
wells and data evaluation is required to assure contioued long term protectiveness. In addition
institutional controls may need to be implemented to assure the CTF remains protective in the
long-term, A review of TCs wil] be conducted in an IC plan to determine what additional ICs are
ne�;ded.
Site Wide
The selected remedy to address groundwater contamination at the site is protective of human
heFilth and the environment in the short term. In order for the groundwacer remedy to be
protective in the long-term, actions identified in the protectiveness statement in the groundwater
and racammendations section of this five-year review must be implemented. The soil rernoval
actiuns and CTF have been identified by the MPCA and US BPA as protective, although
institutional controls are may be needed to assure long-tecm proteetiveness.
31
XXI��
EXHIBIT XXI - E
�S7IMATED IMPACT OF TAX INCREMENT FINANCING DISTRICT NO. 20
ENTITY
County of Anoka
ISD #13
ENTITY
County of Anoka
ISD #13
Oiher
IMPACT ON TAX BASE
ORIGINAL
TAX TAX
3ASE CAPACITY
315,214,077 301,488
2Q,892,516 301,468
ESTIMATED CAPTURED
TAX TAX
CAPACi7Y CAPACITY
1,454, 680 1,153,212
1,454,68D 1,153,212
1,454,680 1,153,212
111APACT ON TAX RATE "
TAX % OF
RATE TOTAI
0.39478 35.01 %
O.A1056 36.41%
0.24355 21.60%
0.07876 6.98%
1.12765 100.00°Jo
TAX TAX RATE
INCREMENT INCREASE
455,265 1.486%
473,463 0.151 %
280,865 9.423%
90, 827
7,300,420
DISTRICT
AS %
OF TOTAL
0.366%
5.520%
"Assumes construction would have occurred without the creation of a 7ax Increment Fir�ancing
District, If construction is a result of Tax Increment Financing, the impact is �0.
XXI-E-1
95
ESTIMATED TAl( INCREMENT REVENUES
(from tax Incxemenl genarated by the dlstrict)
Tax increment revenues dlstributed from the county
Interest and Investment earnings
Sales/lease proGe6ds
Market vafue homestead credil
Total Estlmatad Tax Increment Revenues
EXHIBIT I - C
BUDGET
TIF 1i20 TIF #20A
HSS
Cumulative Cumulauve
Modified NbdiHed
TIF Plan TIF Plan
Budgel Budget TOTAL
$ 48,500,OQQ $ 8,350,0�0 56,850,000
485,OD0 83,500 568,500
$ 48,885,OOD $ 8,433,500 $ 57,418,5D0
ESTIMATED PROJECTIFINANCING COSTS
(ro be paid or financed with tax increment)
Pro}ect Costs
Lend/6ullding acquisilion
Site Improvements/preparation costs
Utiltties
Diher quailiying improvements
Constmctfon ot affordabVe hoosfng
Small city authorized casts, If not already included above
Administrative cosis
Estlmated Tax increment Project Costs
$ 56D,000 $ -
4,898,500
15,275,OOD
4,650,OOD 835,D00
$ 20,625,Q00 $ 5,833,500
5p0,D0�
4,996,500
15,275,000
5,885,OD0
$ 26,458,500
Eatimated Financing Costs
Interest e�ense � 28,360,000 2,600,000 30,960,000
Total Estfmated ProjecVFinancFng Costs to be Paid From TI $ A8,98b,00D $ 8,433,500 $ 57,418,500
0 D 0
ESTIMATED FINANCING
Total amount oi bonds to be issued
TIF 8udget - 20 & 20A.xlsx
I-C-15
i �
20,M100,000 5,800,p09 25,900,000
SECTION XXII
TAX IfVCREMENT FINANCING PLAN FOR
HAZARDOUS SUBSTANCE SUBDISTRICT NO. 20A
(RER PROJECI�
Subsection 22.1. Statement of Obiectives. See Section I, Subsection 1.5,
Statement of Objectives.
Subsection 22.2, Modified Redevelopment P{an. See Section I, Subsections 1.2
through 1.15.
Subsection 22.3. Parcels to be Included. The boundaries of Hazardous
Substance Subdistrict No. 20A (the "SubdistricY') are described on the attached Exhibit
XXII-A and illustrated on Exhibit XXII-B.
Subsection 22.4. Parcels in Acquisition. The Authority may write down or
acquire and reconvey real property, or interests therein, within this Subdistrict or
elsewhere within the Project Area, at the time or #imes as the Authority may determine
to be necessary or desirable to assist or implement development or redevelopment
within the Project Area or the Subdistrict, The Authority may acquire any of the parcels
described on Exhibit I-A and illustrated on Exhibit I-B by gift, dedication, condemnation
or direct purchase from wiliing sellers in order to achieve the objectives of the
Redevelopment Plan or the TIF Plan.
Subsection 22.5. Develo�ment Activitv for which Contracts have been Sianed.
As of the date of adopYion of the Tax Increment Financing Plan (the "TIF Plan"}, the
Authority intends to enter into a Redevelopment Contract with Real Estate Recycling
LLC, a limited liability company for the activit+es discussed below.
Subsection 22,8. Specific Development Expected to Occur. At this time it is
anticipated that the current parcels will be redeveloped including demolition and
removal of blighted and substandard structures and contamination remedialion and the
construction of:
Phase I: ApproximaYely 65,000 square feet of office showroom, 100,000 of
office/warehouse and 200,000 of bulk warehouse space to be constructed
in 2012-2013;
Phase Il: Approximately 65,000 square feet of office showroom, 100,000 of
office/warehouse and 200,000 of bulk warehouse space to be constructed
in 2013-2015; and
Phase III: Approximately 125,000 square feet of offce showroom, 200,000 of
office/warehouse and 400,000 of bulk warehouse space to be constructed
in subsequent years.
22-1
�
Upon complefion of the redevelopment, an aggregate of 1,454,96� square feet of office
showroom, officehvarehouse and bulk warehouse will be constructed with an estimated
market value of approximately $72.7 M.
Subsection 22.7. Prior Planned Improvements. After due and diligent search,
the Authority has determined that no building permits have been issued during the
eighteen (18) months immediately preceding approval of the TIF Plan by the Authority.
Subsection 22.8. Fiscal Disparities. The Council hereby elects the method of
tax increme�t computation set forth in Minnesota Statutes, Section 469.177,
Subdivision 3, clause {a).
Subsection 22.9. Estimated Public Improvement Costs. The estimated public
improvement costs, including interest thereon to be incurred for the benef�t of and within
the Subdistrict and the Project Area are set forth on Exhibit I-C.
5ubsection 22.10. Estimaied Amount of Bonded Indebtedness. It is anticipated
that approximately $4.4 M of bonded indebtedness may be incurred with respect to this
portion of the Project Area.
Subsection 22.11. Sources of Revenue. Anficipated revenue sources fo assist
in the financing of the public improvement costs, pursuant to Subsection 21.9. above,
include (1) general obligation and/or revenue tax increment obligations with interest; (Z}
the direct use of tax incremen#s; (3} the bvrrowing of available funds, including without
limitation interest-bearing City short-term or long-term loans; (4) interfund loans or
advances; (5) interfund transfers, both in and out; (6) land sale or lease proceeds; (7)
levies; (8) grants from any pubfic or private source; (9) developer payments; (10) loan
repayments or other advances originally made with tax increments as permitted by
Minnesota Statutes; and (11) any ofher revenue source derived from the City's or
Authority's activities within the Project Area as required to finance the costs as set forth
in Exhibit I-C. All revenues are available for tax increment eligible expenses within the
Project Are as allowed by Minnesota Statutes.
Subsection 22.12. Estimated Or�inaV and Ca�tured Tax Ca�acities. The tax
capacity of all taxable property in the Subdistrict, as most recently certified by the
Commissioner of Revenue of the State of Minnesota on January 2, 2012, is estimated
to be $301,468.
The captured tax capacity of the Subdistrict is estimaied to be $301,468. The
Authority intends to utilize 100°/0 of fhe captured tax capacity for the duration of the
Subdistrict for purposes of determining tax increment revenues.
Subsection 22,13. Tax Increment. Annual tax increment generated from the
Subdistrict has been calculated at approximately $339,950. This esiimate is provided
on the attached Exhibit XXII-C. Revenue has also been projected for the duration of
the Subdistrict and is shown on Exhibit i-C-15,
22-2
98
Subsection 22.14, Local Tax Rate. The estimated pay 2012 local tax rate is
1,12765.
Subsection 22.15. Subdistrict. The Subdistrict is, pursuant to Minnesota
Statutes, Section 469.174, 5ubdivision 23, a hazardous substance subdistrict.
Subsection 22.18. Duration of TIF District. The duration of the Subdistrict is
expected to be twenty five (25) years from receipt of the first tax increment or the period
necessary to recover the costs of removal actions or remedial actions as specified in
the development respond action plan. The date of receipt of the first tax increment is
estimated to be July, 2013. Thus, it is estimated that the 5ubdistrict, including any
modifications for subsequent phases or other changes, would terminate in the year
2038.
Subsection 22.17. Estimated Impact on Other Taxinq Jurisdictions. The
estimated impact on other taxing jurisdictions is reflected on Exhibit XXII-E.
At this time the Authority anticipates there will be no impact on City services due
to the creation of the Subdistrict. Additionally, since the City has no current ptan to
issue general obligation debt for project costs, it further anticipates that there will be no
impact on its borrowing costs due to the creation of the 71F pistrict. Please refer to
Exhibit XXII-D for the narrative "but for" analysis.
Subsection 22.18. Modification of the Hazardous Substance 5ubdistrict andlor
Tax increment Financing Plan. As of Aprii 9, 2012, no modifications to the Subdistrict
or the TIF Plan have been made, said date being the date of initial approval and
adoption thereof by the City Council,
22-3
..
EXHI6IT XXiI—A
PARCELS TO BE INCLUDED
27-30-24-13-0092, 27-3Q-24-42-�002, 27-30-24-43-0002
and all easements, rights-of-way and adjacent roads and streets
XXil-A-1
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104
EXHIBIT XXII—D
"BUT FOR" ANALYSIS
The Site is approximately 136 acres and contains a building that is 2,000,000 square
feet. 7he Site is best lcnown as the FMC Corp. 5ite. From 1941-1964, a naval
ordinance manufacturing comptex operated the Site, from 1945-1969, a southern
portion of the Site was used for burning and disposing of waste; in 1981, an
mvestigation revealed contamination and a history of waste disposat; in 1983, a cleanup
of the Site began. The southern portion was listed on the National Priorities List.
Attached is the cover page and the Executive Summary of the F'ourth Five-Year Review
Reporl dated September 30, 2009.
The building is substandard as shown by the Code/Condition Deficiency Report
prepared by LHB, Inc. dated January 31, 2012.
In addition, the building has limited uses and is obso{ete by current warehouse
standards.
Real Estate Recycling is proposing to demolish the building, remediate the Site and
construct approximately 1,�00,000 square feet of office, showroom, warehouse and
bulk warehouse facilities in approximately 12 buildings.
Because of the very substantial demolition and remediation costs, it is not possible to
redevslop the Site without the use of tax increment.
MMB: 4840-4818-5648, v. 1
XXI I-D-1
�os
Property Address:
PTN:
Inspection Dnte(s) & Time(s}:
Inspecdon Tyhe:
CODE/CONDITION DEFICIENCY REPORT
dannary 31,2012
4850 East River Road, Frfdley, MN
27-30-24-13-0002 & 27-30-24-42-0002
December 2, 2011 - 8:00 a.m.
Interior & Exferior
Summary of Uefrciencies: It is our professional opinion that Uris building is Substandard because:
- Building CoJe deficiencies total more than I 5% of replacement cost.
- Substantial renovation is required to conect Conditions found.
EstimatedReplacementCost: $ 179,468,500
Fstimated Cost to Correct Building Code Deficiencies: $ 40,A75,000
Percentage of Replacement Cost: 23%
Aescription of Condi6on Deficiencies
Minnesota Statutes, Section 469.174, Subdivision 10, states that a building is Structarally Substandard if it
contains "defects in structural elements or a combination of deficiencies in essential utilitias and facilities, light
and venlilation, fire protection including adaquate egress, layout and condition of interior pu[itions, ar similar
faciors, whicli defects or deficiencies are of sufficient total s+gnificance to justify substantial renovation or
clearance."
A. Defects in Structara] Elements
I. Roof strachu•e inadeyuata to supgon reroofing with correct amount of slope and insuletion.
2. Roof structure under-sized to support snow drift loads.
3, Columns and roof structure are not fire-rated.
B. Combination of IIeficiencies
1. Essential Utilities and Facilities
a. The HVAC system is piec�meal and of different ages, some elements dating from the 49s. Many of
the older units appear to be aged and in need of replacement or repair.
2. Li�ht and Ventilatian
a. Many light fixtures use T121amps, scheduled to be phased out by DOE mandate.
3. Fire ProtectionlAde�uate Eg�•ess
a. Two stairs are too steep and have inadequate handrails.
h. Tlu•ee stairs have inadequate handrails.
c. Onlawful mechanical/elecuical penetralion at one stair enclosure,
d. At least tluee sYair anclosures exit into the factory space, instead of into an acceptable exit passage.
e. Mechanical rooms appear to be inadequately separated fmm rest of construction.
4. Layout and Condition of Lrterior PartitionsJivlaterials
a. Interior finishes have been damaged by water leaking from roof in some ]ocations.
b. Office building wing badly damaged from mold infestation.
c. O�ce wing finishes completely gutted, lighting removed and HVAC distribution system parfially
removed.
X1�06�
5. E�cterior ConsG•uc6on
a. Roofing appears cracked and worn,
b, Roof slope inadeqnate, resulting in ponding and leaking.
c, O�ce building wing badty damaged flom mold infestation.
Descrietion of Code Deficfencics
1. Steel sLucture is expased and unprotected. In order to meet allowable area requirements in the code,
exposed steel columns and roof structure must be have at least 1-hour fire resistance.
2. Approximately 40% of the building is without required sprinkter system.
3. Stair guardrails at five locations do not meet code. Girazdrail picket spacing is greater than 4".
4. Stair handrails are too low in five locations and lack extensions.
5. Stair risers in two locations exceed the maximum allowable 7" and peads are less than tlie minimum
allowabla 11"
6. There are unprotected penetrarions in required fire-rated wal(s and ceilings (stair enclosure and
mechanical room).
7. Roof slopes do not meet code for adequate drainage.
8. According to a roof survey conducted in the mid-SOs, most of the roof is overstressed, meaning it would
ba unable to support ffie tapered insula(ion necessary to correct roof slopes, Although changes in the code
have lessened roof design loads since the survey was conducted, a requiremant to acwmmodate snow dri$
loads has been added. The result, in a building such as this with many clerestory Areas that would cause
drifling on lower roofs, is a greater dasign load in affected aseas. It is estimated Ihat 75°ro of the roof is
structwally inadequate due to snow drift foading.
9, One of the elevators is without accessible controls.
10. Travel distance from buildiug interior to public way exceeds albwable maximum.
Enerev Code
In addition to the building code deficiencies listed aUove, the existing building dces not comply with the current
energy oode. These deficiencies are not included in the estimated wsts [o correc[ coda deficiencies and are not
considered in detennining wUetl�er or noi the bailding is substandard:
- Building's wal( insulation dces not meet current code requirements.
- Building's heating and coo]ing is not as efficient as current energy code would require,
- Building's ]ighting in majority of office azeas not energy efficient.
M:1; IPro�111062l1400➢esign}40G Reportsl'fIYlSubstuMeN Duilding Reporl BAE I1 I228.docx
XXN-D-3
107
EPA� qRepgp�b�pn 6 �Rry=cords Ctr.
I�WHQIIe�NHI�I��
342766
Five-Ycar Review Report
Fourth Five-Year Review Report
For
FMC Corporation (Fridley Plant)
Fridley
Anoka �ounty, Minnesota
September, 2009
PKEPARED SY;
Minnesota Ppllulion Conlrol Agency
St. Paul, Minnesota
As Modified by
The United States Environmental Protection Agency
Region 5
Chicago, Illinois
Approved by:
_. ' �
_�--�'"' R�ard C. Karl
lairevtar
f'suX�crfund Division
Date:
XXII-D-4
108
3� 4
Executive Summary
On behalf of the United States 6nvironmental Protection Agency (US EPA), the Minnesota
Pollution Control Agency (MPCA) has co[npleted a five-yeur review of the remedial action (RA)
imptemented at the FMC S'tte (Site) located in Fridtey, Minnesota. This is the fourth five-year
review for the Site which evaluates the efFectiveness of the ttA to date.
Historically, industrial and hazardous waste generated from naval ordnance manufacturing
including plating wasYes, paint, paint sludges, oils, botiom ash and chlorinatad and non-
chlorinated solvents was disposed of at the Site. Initial remedial actions included construction of
an on-site cantainment artd treaimenl facility (CTF) to treat and contain soils contaminated wiTh
voiatile organic compounds (VOCs) in 1983. Groundwaler contamination was addressad
through a groundwater extraction systam, installad in 1987, and a monitoring well network. The
groundwatet eactracfion system continues fo operate and VOCs mmain in the groundwater at and
down gradient of the Site.
Protectiveness Statement(s):
The pratectiveness of the current remedy as concluded by ihis five-year review is as follows:
Grou�dwater
TE�e remedy setected to address groundwater contarreination is currently protective of human
health and the environment in the shart terma. In order for the remedy to be protective in the
long-term the follow'sng actions need to be completed:
• The monitoring well network must be expanded and iha groundwater
plume must be fiaily defined;
• MCLs or healih based cleanup vaiues are to be achieved at the Site
boundary;
• Updates to the Site monitoring plan need to be completed;
• The capture of lBa gxoundwater extraction system must be further
evaluated;
• A complete risk assessment is to be conducted with regard to the seep;
• Effectiva institutional controis are in place at and near the site that are
pratective in the short term and apply to a11 activities thac may lead to
potentiat exposure; In order to assure long term protectiveness, additional
institutional controls on BAE property and naazby propeny wi0 be
evAluated.
• Remedial action addressing exposure at the seep must be comp[eted (if
' See Appendi% A For MPCA's position on the short term protectiveness,
!D
XXI I-Q-5
109
determined to be necessary by the risk assessment);
• Further evaluation needs to be conducted for add'rtional remedial action
utilizing data collected from additional investigations; �
• Improvements [o data evaluation and presentation within Annual
Monitoring Report to be made.
3oi1
Soil removai actions were conducted prior to implementauon of tha ROD and decision
documents for the Site. The US EPA and MPCA have found soil removal actions ta be
protective of hurnan health and the environment. Continued monitonng of CTF monitoring
wet)s and data evaluation is required to assure continued long term protectiveness, In addition
institutional controls may need to be implemente� to assure the CTF remains protective in the
long-term. A review of ICs will be conducted in an iC plan to determine what additionaJ ICs are
needed.
Site Wida
The selected remedy to address groundwater contamination at the site is protective of human
he��lth and the em�ironment in tha shorl term. Tn order f'or the groundwater remedy to be
protective in the long-term, nctions identifie$ in the protectiveaess statement in the groundwater
and recommendations section of this fiv�year review must be implemented. The soil removal
actions and CTF fiave been identified by the MPCA and US EPA as protective, alihough
institutional controls aze may be needed to assure long-tetm protectiveness.
11
1� � .
1
EXHIBIT XXII - E
ESTIMATED IMPACT OF HAZARDQUS SUSSTANCE SUBDISTRfCT NO. 20A
IMPACT QN TAX BASE
ORIGfNAL ESTIMATED CAPTURED
TAX 7AX TAX TAX
DIS7RICT
AS %
ENTITY BASE CAPACITY CAPACITY CAPACITY OF TOTAL
City of Fridley 31,795,494 D 301,468 301,468 D.948%
CountyofAnoka 315,214,077 0 301,468 3Q1,A68 0.096%
ISD #13 20,892,516 6 301,468 301,468 1.443%
IMPACT ON TAX RATE *
TAX °lo OF TAX TAX RATE
ENTITY RATE TOTAL INCREMENT INCREASE
City of Fridley 0.39478 35.01% 119,014 0.378°/v
County of Anoka 0.41056 36.�+1 °fo 123,771 0.039%
ISD #13 0.24355 21.80% 73,423 0.357°/u
pther 0.07876 6.9&% 23,744
1.12765 100.00% 339,950
* Assumes market value will not decfine.
XXII-E-1
111
ESTIMATED TAX INCREMEN'f REVENUES
(from tax fncrament genarated by �he district)
Tax incremeni revanues distrfbuted from tho county
Interest and investment eamings
Salesllease proceetls
MeAcet value homestead credlt
Total Estlmated Tax Incremeni Revenues
EXHIBIT I - C
BUDGET
TIF #20 71F #20A
N55
Cumulative Cumulative
Modfffed Nlotlifled
TIF Plan TIF Plan
6udget Budget TOTAL
$ 48,500,000 $ 8,356,000 56,850,000
485,000 83,500 588,500
$ 48,985,000 $ 8,433,500 $ 57,h18.500
ESTIMA7ED PROJECTlfINANCING COSTS
{to be pafd or financed with tax Increment)
Projuct Costs
LandJbuilding acquisition
SNe improvemerKslpreparation costs
Utlllties �
Ottier qual'dying Improvements
Construotian of affordeble housing
Small city authorized costs, If nof already inGuded abova
Administrative costs
Estimated Tax Increment Project Costs
$ 500,Q00 $ -
4,998,500
15,275,D00
4,850,000 835,Q00
$ 20,H25,000 $ 5,833,500
500,000
4,996,500
15,275,000
5,685,000
$ 26,458,500
Estimated Fi�ancing Costs
Interesi axpense 28,36p,000 2,6D0,000 30,960,000
Total Estimatetl ProjecUFinanGng Costs to be Paid From TI $ 46,985,000 $ 8.433,500 $ 57,418,500
0 0 0
ESTIMATED FINANCMG
Total amount ot bonds to be Issued
20,1D0,000 5,800,000 26,900,OQ0
TIF Budget - 20 & ZDA.xlsx I- C-15
112
f: AGENDA ITEM
CITY COUNCiL MEETiNG OF
F o� April 9, 2012
To: William W. Burns, City Manager qi���
From: Dazin R. Nelson, Finance Director jy`I
Kyle Birkholz, Liquor Store Manager
Date: Apri15, 2012
Re: Amended & Restated Liquor 5tore Lease
Background
Back on February 13`h, the Council approved a new liquor store lease agreement with ZCOF TL
Fridley, LLC also known as Tri-Land Developments, Inc. of Westchester, Illinois. Tri-Land's
financing company is currently reviewing both the SuperValu and Fridley Liquor Store lease before
approving final financing for the redevelopment and allowing both leases to be fully executed. The
financing company has requested two changes to the City's contract that will help expedite the
construction timeline.
The first change is in Section 23, which defines the commencement date. The commencement date
is the date the liquor store first opens for business to the public fully fixture, stocked and staffed in
the new premises. In the lease approved in February, the City has up to sixty days between the
delivery date (the date the keys aze handed to the Ciry) and the commencement date (the first day of
operations). The concern of the financing company is that during this sixty day window, the
demolition of the existing premises cannot occur, causing a potential delay in construction. This
delay could result in outside work potentially not being completed before the onset of winter.
We aze sensitive to this timeline and would also prefer to have construction wrapped up before
winter so that the liquor store operations can return to normalcy. We have since negotiated with
Tri-Land to allow us to set up our beer cooler twenty-one days prior to the delivery date. The
installation of the beer cooler is our largest project in regazds to moving and setting up. In return,
we have agreed to reduce the number of days between the delivery date and the commencement
date from sixty to twenty-one. Staff is confident that with the beer cooler set up and running prior
to the delivery date, we will be able to finish our detail work and move into the existing space
within this timeframe.
113
The second change is in Section 2.4, which defines the timeline for surrendering the existing leased
space. In the lease approved in February, the City has fourteen days to surrender the existing space
after the commencement date. In essence, this allows the City to utilize the existing space for up to
fourteen days, even though we would be fully operational in our new space. Again, this additional
two weeks of potential idle time puts pressure on the timely complerion of the construction
schedule.
We do not anticipate needing the existing space after operations aze up and running. We were
concerned that we may have miscellaneous items such as shelving or even inventory left in the
existing space immediately following the commencement date. In order to not slow the demolition
of the existing space, we negotiated with Tri-Land to allow for temporazy storage space for up to
fourteen days after the commencement date. This space will be located in an area of the building
that is not under construction at that point in time. We will have to vacate the existing liquor store
space, but having another space available to stage items is acceptable.
The only other change noted is to Section 11 of Exhibit D, which is a directly related to the
language changes in Section 2.3. This change allows the ciTy to relocate and install the beer cooler
prior to the delivery date, with the stipulation that we have necessary liability insurance, building
permits, etc., which is what is spelled out in Section 3.2A of Exhibit D.
The City Attorney has reviewed the revisions to the lease and is comfortable with the language
amendments. Attached are the sections of the originallease with the appropriate revisions noted.
Recommendation
Staff recommends Council pass the attached resolution approving the Amended and Restated
Liquor Store Lease between the City of Fridley and ZCOF TL Fridley, LLC, with the stipulation
that the signed lease not be delivered to the landlord until evidence of a fully executed SuperValu
lease is received.
114
An�endrt7e;nts .c� Leasc:_fi:�reeri�nt
�i�rt i�t ?-,�- _ _
Section 2.3. Commencement of the Term. The Lease Term, and the obligations of the
Tenant to pay Rent hareunder and to commence retail operations in the Leased Premises, shall
commence and accrue on the earlier of (a) the date that Tenant first opens for business to the
public fully fixtured, stocked and staffed in the Leased Premises, or (b) the �ixti��t�(�}��(t��)"'t7Y� -
firsLfZL) day following the date on which Landlord delivers possession ofthe Leased Premises
to Tenant with those portions of Landlord's Work more particularly described in Sections 1
through �4 of Exhibit C substantiaUy complete (the "Delivery Date"). Such date of
commencement of the Lease Term as hereinabove provided, is referred to as the
"Commencement Date." Tenant shalV perform diligently such of its obligations contained in
Exhibit D as are to be performed by it prior to the Lease Term, and shall complete its work not
later than the Commancement Date.
Section 2.4. Existin� Lease. Landlord and Tenant are eurrently parties to that certain
Shopping Center Sublease dated as of June 14, 1999, as amended by that certain First
Amendment to Lease dated as of September 21, 2006 (collectively referred to herein as the
"Existing Lease"), for certain premises consisting of approximately ]3,331 square feet, including
:i r�ortion of the Leased Premises and.s�CGtiu additional premises referred to herein as the
°Surrender Premises", as depicted on Exhibit B attached hereto (the F-�.�Surrendcr Premises
and said o�rYicin of the �;a,=ra�k��Le.SSSSI Premises are colleeYively referred to herein as the
"Existing Premises"). Prior to the Commencement Date, Tenant shall continue to occupy the
Esisting Premises subject to the terms, covenants and conditions of the Existing Lease, except as
otherwise expressly provided in this Lease. Tenant shall relocate Tenant's operations from the
Existing Premises to the Leased Premises, as more particularly described in Exhibit C and
Exhibit D, removc atl of Tenant's :: ,
��� � s,.s�� ! =s=s•-�.�� and open for business to the public in the Leased Premises on the
Commencement Date: orovided 6owever. that Tenant shall be nermiftetL t4 st9r_e_ tr�
fixturee etiuinment and ofher p�� �� oronertv (includine inve�torvl in a oortiou (as mav
be deciunated by I andlord from time to time�StLSll��nac� desi�ated_as_ "Availa6le
Anchor" ou Gxhibit D-1 � ��.� =�� � �� the Comme��cement
Date. Effective as of the Commencement Date, the Existing Lease shall terminate and shall be
of no fuMher force or effect, and thereafrer Tenant shall be deemed to have surrendered
possession of the Surrender Premises to Landlord, shall have no right to possession of the
Surrender Premises, and shall have no right to conduct operations ;�+r+�Er�-;fij+�+t+tnti# -I�+,+ektt:
{�i��-+�4��4k�r�=t ���t� to store v�:� trade fixtures, equipment �++�i� personal property
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Sta�ri'�iteae� -}?+'e�ix�i-,es :, � � - thcrein. Follo�tiing the
Commencement Date,-k�I4�>�-��4;+�4i Landlord shall have right to remove and dispose of
s��t+e�y ofTenant'c trade Tixtures,_gquioment or persanal �roperh� not removed from the
Surrender Premises without liability to Tenant therefor, �-+i+il-jcr� �+��ati.-�.;-TT�+�t--I�;
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��Ycfc'���.
Section 2.5. Term of Lease. The Lease Term shall be for the period specified in Section
1.1 supra, unless otherwise terminated or extended as provided herein.
Section 2.6. Definition of Lease Year. The term "Lease Year" means a period of twelve
(12) consecutive calendar months, provided, however, that prior to the first Lease Year there
shall be a"Partial Lease Year" which shall commence on the Commencement Date and shall end
on October 31, 2012. The first Lease Year shall commence on November l, 2012 and shall end
on October 31, 2013, a�d each succeeding Lease Year shall commence upon the anniversary date
of the first full Lease Year.
Section 2.7. Extension Options. Provided Tenant is not otherwise in default hereunder
beyond any applicable notice and cure period and is continuously operating in the Leased
Premises for the Permitted Uses at the time of Tenant's delivary of the First Extension Notice
(de6ned herein), Tenant shall have the option ("First Extension Option") to extend the Lease
Cerm for one (1) period of five (5) additional Lease Years (the "First Option Term"), subject to
the terms, conditions, covenants and provisions of this Lease. Tenant shall exercise the First
Extension Option by giving Landlord written notice thereof ("First Extension Notice") at least
three hundred thirty-five (335) days prior to the expiration of the initial Lease Term. If Tenant
shall fail to timely deliver the First Extension Notice to Landlord, or if Tenant shall be in default
beyond any applicable notice and cure period at the time of Tenant's delivery of Ihe First
Extension Notice, the First Extension Option shall immediately become null and void.
In addition, provided Tenant has properly exereised the First Extension Option and
further provided Tenant is not otherwise in default hereunder and is continuously operating in the
Leased Premises for the Permitted Uses beyond any applicable notice and cure period at the time
of Tenant's delivery of the Second ExCension Notice (defined herein), Tenant shall have the
option ("Second Extension Option") to extend the Lease Term for one (1) period of five (5)
additional Lease Years (the "Second Option Term"), subject to the terms, conditions, covenants
and provisions of this Lease. Tenant shall exercise the Second Extension Option by giving
Landlord written notice thereof ("Second Estension Notice") at least at ]east three hundred thirty-
five (335) days prior to the expiration of the First Option Term. If Tenant shall fail to timely
deliver the Second Extension Notice to Landlord, or if Tenant shall be in default beyond any
applicable notice and cure period at the time of Tenant's delivery of the Second Extensio�
Notice, the Second Extension Option shall immediately become null and void.
Section 2.8. Fridlev 1998 L.L,C. Lease. It shall be an express condition precedent for
both Landlord and Tenant that C,andlord and Fridley 1998 L.L.C.("Cub") enter into a new lease
to reconfigure Cub's current premises in the Shopping Center (the "New Cub Lease"). Landlord
shall notify Tenant in writing upon the execution of the New Cub Lease and verify the New Cub
Lease by showing Tenant the face page and the signature page of the New Cub Lease.
05392\007071910454.10 4
116
Section 2 9 Amendmeut and Restatement This Lease l�erebv amends and restatec
in it� eutiretv that certain leace bv a�td b��aLa�ullocd and Tenant ���hich �cac nreviouslv
anuroved bc Tenant ott Februarr 13 2012 but was ut erecuCed h� Lan lord The uarties
desire tn here Y�men�sQrt2in_�rat�isions of such orior lease, as nrovided in this Leasc.
ARTICLE III. CONSTRUCTION.
Section 3.1. Construction bv Landlord. Landlord will perform work in the Existing
Premises and the Leased Premises substantially in accordance with the outline specifications
described in the schedule entitled Description of Landlord's Work and attached hereto as Exhibit
C. Not later than the Commencement Date, Landlord's architect will calculate the actual Floor
Area of the Leased Premises. If, pursuant to said calculation, the actual Floor Area of the Leased
Premises is less than or greater than that stated herein, then all applicable references to the Floor
Area of the Leased Premises shall be amended in accordance with said calculation; provided,
however, that if the square footage for the Leased Premises is equal to or greater than 10,300
square Yeet, then the Fixed Minimum Rent payable by Tenant under this Lease shall not be
affected. ]f the square footage for the Leased Premises less than 1Q300 then the Fixed Minimum
Rent shall be amended to be $] 0.43 multiplied by the actual number of square feet for the Leased
Premises. In determining the Floor Area of the Leased Premises, measurement shall be taken
from the outside surface of exterior walls and the center of interior dividing or demising walls.
Section 3.2. Construction by Tenant. All work to be performed by Tenant prior to the
Commencement Date shall be governed by Exhibit D attached hereto and made a part hereof.
Any work to be performed by Tenant following the Commencement Date shall be governed by
Section 8.1.i ofthis Lease.
Section 3.3. Renovation Allowance. Provided Tenant is not otherwise in default beyond
any applicable notice and cure period, Landlord will reimburse Tenant for a portion of the costs
incurred by Tenant in relocating or replacing or adding fixtures, equipment and merchandise to
the Leased Premises in the amount of up to Fifty Thousand and No/]00 Dollars ($50,000.00)
(the "Renovation Allowance"), which amount shall be payable within forty-five (45) days
following the later to occur of (i) the Commencement Date and (ii) the date Tenant submits to
Landlord a written statement requesting such payment accompanied by paid invoices covering
all costs incurred by Tenant in connection with such work, certifies that the Shopping Center is
free and clear of all mechanics' liens and other encumbrances relating to such work by
submitting a commercially reasonable form reasonably acceptable to Landford and Tenant, and
provides to Landlord �vaivers, affidavits and releases of Iien from all of Tenant's contractors and
material suppliers relating to such work in form and substance reasonably satisfactory to
Land lord.
ARTICLE IV. METHOD OF RENT PAYMENT.
Section 4.1. Fixed Minimum Rent. Tenant agrees to pay to Landlord, or to such other
persons as Landlord may direct, without demand, at the Address of Landlord or such place as
Landlord may by notice in writing to Tenant from time to time direct, Fixed Minimum Rent in
the amount specified in Section l.l, payable in United SEates Dollars in advance in equal
successive monthly installments commencing on the first day of the Lease Term for the first
os39z�oo�m�9 i oasa. i a 5
117
EXHIBIT D
DESCRIPTION OF TENANT'S WORK
All work required to complete and place the Leased Premises in finished condition for
opening for business, except work to be done by the Landlord described in Exhibit C, is to be
done by the Tenant, at the TenanYs expense, and in accordance with this Exhibit, Exhibit E, and
the Lease to which this Exhibit is attached.
TENANT'S WORK includes, but is not limited to, the following:
I.l Relocate .�ih� portion of Tenant's x�;r,<< beer cooler ki�+�itthat is located iu the
4;�kr<tm�-�-F+e+�rf,e4 +t�—t�+��}�ta+��a;��-�=h}�,��+eEl cased Premieev to a oortion (as may be
.l _. _ l L . i _J� ..l f _ _ a.W_ �_ �.:�_l ..0 �L_ ......�__ J.�.. ,�L..�1 .�.. 1� A�..�:I..l.l.. A....1.....�1
on Eshibit D-1 (where Landlord shall store same at Landlord's cost) :�s� -.1}e��i e�� ��l���l�i� -l�--l-
�al; ��a,t:er. Landlord shall give Tenant not less than thirty (30) days prior notice of the date
on which Tenant shall relocate Tenant's cooler and products, whereupon Tenant shall partition
TenanYs cooler to prepare for the partial relocation and �hall relocate same Landlord sh�ll
�ive Tenant nnt less than thirfv (301 davs' nrior notice of t6e date on H�hich Laudlor
estimates that the Delive_�ate�°ill_ucc�. Cmnmencin� on the date tl�at is riventv-one
(211 dav� orior t� the nr000sed Delirer�� Date set forth iu Landlord's notice. Tenani shal
h;s�� the �iQht trz cntcr ontc� thc Leased Premi,es f�r the nuroose of relocatinQ and
insfalline'LennnYs beer �ooler�om tlt� �vailf�Vlc AochQr snace and the F'xivtin Premicec
to the I eaced Premicec and installiue same S�cli entry �nt� the I,eased Premisc� and
oerformance of such work bv Tcnant orior to the Deli��erv llate shall be ou all of the terms
and con�itions of the I.ease other than TenanYa obl�gation to nay Fired Minimum RenL
Tenant'c Pro-Rnta Share of QneraHnp Cocts rea! estate taYec xnd insuranee and tttiliri�
eharees for the Leased Premises Tenant stt�ll noLtzr uertnitte to enter onto the Leased
Premises nrior to ttie detiverv to Landlord �f all items reauired in Section 3.2A o1' this
�xhibit D. Tenant and TenanYs contractnrs shall worlc in harmon�with Landlord and
L•indlord's contracYorti duri� sucl� entn- by Tcnant orior to the ('ommencement llaYe
and shall uot delav or disruot the nerformancc of L2ndlcird'c 4Vc�rk.
1.2 Purehasing and installing new equipment and fixtures or reinstalling the shelving
in the Existing Premises and other interior fixtures and equipment, including all refrigerated
coolers and cases and remote compressors.
1.3 Reloeating or disposing of all trade fixtures and furnishings in the Existing
Premises.
1.4 Relocating all of Tenant's merchandise &om the Existing Premises to the Leased
Premises.
1.5 Install storefront display platforms or backgrounds.
1.6 Purchasing and installing new signage consistent with TenanPs sign plans as
illustrated in Exhibit G4-1 and as approved by Landlord.
D-1
os3vz�oo�a�vioasa io
118
RESOLUTION N0.2012-
A RESOLUTION APPROVING AND AUTHORIZING EXECUTION OF THE AMENDED AND
RESTATED LIQUOR STORE LEASE BETWEEN CITY OF FRIDLEY AND ZCOF TL FRIDI,EY, LLC
WHEREAS, the City of Fridley has an existing lease for its warehouse liquor store with ZCOF TL Fridley,
LLC, a.k.a. Tri-Land Developments, Inc. of Westchester, Illinois located at 248 57th Avenue NE, Fridley,
Minnesota; and
WHEREAS, Tri-Land Developments is in the process of finalizing redevelopment plans for the shopping
center which currently houses the City's liquor store and Cub Foods; and
WHEREAS, the redevelopment plans will cha�ge the location, layout and size of the liquor store. The new
footprint will resemble a more traditional strip mall size and shape by praviding a narrower storeFront width
and a deeper store depth. The new liquor store will be approximately 2,760 feet smaller allowing for more
efficient operations and a more controlled flow of customers through one entrance rather than the curcent two
entrances;and
WHEREAS, the terms of the lease are similar to the existing fease and provides for the currant annual Iaase
rate of $109,980.75 through October 31, 2013, and an additional five-year lease beginning November ], 2013
through October 31, 2018 at an annua] rate of S 136,777.81, with the option of two additional five-year terms
that include fixed rent adjustments; and
W HEREAS, [he liquor store experienced a decrease in sales since Gander Mountain vacated the space next to
the liquor store, the redevelopment plan provides for additional tenants which should help the liquor store
regain lost sales; and
WHEREAS, the City was able to negotiate a monthly $I,00� rent rebate into the lease to help insulate the
City against the rent increase if the shopping center does not achieve its anticipated 75°/a occupancy for the
first five-year term from 2013 to 2018; and
WHEREAS, the new lease provides for a$50,000 renovation allowance for relocating the woler and
associated condensers,signage and decorating expenses;and
WHEREAS, the common area maintenance services will be provided by Tri-Land Deoelopments and the
liquor store shall only be responsible for its prorated share of the shopping center; and
WHEREAS, the lease is contingent upo� Cub Foods signing a new lease; and
WHEREAS, subsequent to the liquor store lease approved by Council on February l3, 2012, Tri-Land
Developments has requested changes to the lease to accommodate fina] financing approval: and
WHEREAS, Sections 2.3, 2.4, and Exhibit D- Section 1.1 have been amended to terms agreeable to both the
City and Tri-Land Developments; and
NOW, THEREFORE, BE IT RESOLVED, that the Ciry Council of the City of Fridley hereby approves the
amended and restated liquor store lease between the City of Fridley and ZCOF TL Fridley, LLC, located at
the new address of 264 57th Avenue NE, Fridley, Minnesota, authorizes the execution of the lease by the
Mayor with the stip�lation that the lease not be delivered to the landlord until evidence of a new Cub Foods
lease is received.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE C1TY OF FRIDLEY THIS _ DAY OF
2012.
ATTEST:
Debra A. Skogen, City Clerk 119
Scott J. Lund, Mayor
��� � ����
AMENDED AND RESTATED LEASE FOR
FRIDLEY MARKET
FRIDLEY. MINNESOTA
ARTICLE I. BASIC LEASE PROVISIONS AND ENUMERATION OF EXHBITS.
Section 1.1. Basic Lease Provisions.
EFFECTNE DATE:
LANDLORD: ZCOF TL Fridley LLC, a Delaware limited liability company.
ADDRESS OF LANDLOKD: c/o Tri-Land Developments, Inc., One Westbrook Corporate Center,
Suite 520, Westchester, Illinois 60154-5764.
With a copy of all notices to c/o EGI Properties, L.L.C., Two North Riverside Plaza, Suite 600,
Chicago, Illinois 60606 Attn: Leasing Coordinator.
TENANT: City of Fridley, a Minnesota municipal corporation.
NOTICE ADDRESS OF TENANT: 6431 University Ave. NE., Fridley, Minnesota 55432-4384
Attention: Director of Finance.
TENANT'S TRADE NAME: Fridley Liquors.
LEASED PREMISES: The space designated and cross-hatched on Exhibit A, commonly known as
260 57�' Avenue N.E., Fridley, Minnesota 55421.
FLOOR AREA: 10,540 square feet, being the deemed rentable area of the Leased Premises, as
outlined in Exhibit A, subject to re-measurement as provided in Section 31 below.
LEASE TERM: Approximately six (6) Lease Years (plus a Partial Lease Year, prior to the first
Lease Year).
FiXED MINIMUM RENT:
Lease Year/Period Annual Fixed Minimum Rent
1, including Partial Lease Year preceding $109,980.75
first Lease Year (Commencement
Date — 10/31I2013)
2 through 6 (ll/1/2013 — 10/31/2018) $126,777.81
oss9z�oo�o»� oasa. io
Lease YearlPeriod Annual Fixed Minimum Rent
(Option Terms)
7 through 11(ll(1(2018— 10(3ll2023) $145,841.14
12 through 16 (ll/1/2023-10/31/2028) $167,703.98
PERMITTED USES: A municipal liquor store and no other uses, subject to all of the terms,
covenants and conditions set forth in this Lease including, without limitation, the covenants set
forth in Article VIII.
SECURITY DEPOSIT: None.
Section 1.2. Enumeration of Exhibits. The exhibits enumerated in this Section 1.2 and
attached to this Lease are incorporated in this Lease by this reference.
Exhibit A. Site Plan of Fridley Market.
Exhibit B. Depiction of Existing Premises.
Exhibit C. Description of Landlord's W ork.
Exhibit D. Description of TenanYs Work.
Exhibit E. Sig� Criteria.
Exhibit F. Rules and Regulations.
Exhibit G. Depiction of Designated Spaces.
Exhibit H. Depiction of Loading Area.
ARTICLE Ii. LEASED PREMISES AND `1"ERM
Section 2.1. Shonpine Center. Landlord is the owner of the tract of land located in the
City of Fridley, Minnesota, commonly known as "Fridley Market" ("Landlord's Tract").
Landlord's Tract is depicted on Exhibit A. Landlord's Tract and any improvements and
appurtenances constructed thereon from time to time are sometimes hereinafter referred to as the
"Shopping Center." Landlord reserves the right from time to time during the Lease Term to
make changes to the Shopping Center including the size and location of the buildings and
Common Areas, to construct kiosks, enclosed malYs or courts, and to redesign or redecorate any
or all of the Shopping Center.
Section 2.2. Leased Premises. Landlord hereby leases and demises to Tenant, and
Tenant hereby leases from Landlord, subject to and with the benefit of the provisions of this
Lease, the Leased Premises.
oss9z�oa�o»�oasa.io z
Section 23. Commencement of the Term. The Lease Term, and the obligations of the
Tenant to pay Rent hereunder and to commence retail operations in the Leased Premises, shall
commence and accrue on the earlier of (a) the date that Tenant first opens for business to the
public fully fixtured, stocked and staffed in the Leased Premises, or (b) the twenty-first (21 s�) day
following the date on which Landlord delivers possession of the Leased Premises to Tenant with
those portions of Landlord's Work more particularly described in Sections 1 through 4 of Exhibit
C substantially complete (the "Delivery Date"). Such date of commencement of the Lease Term
as hereinabove provided, is referred to as the "Commencement Date." Tenant shall perform
diligently such of its obligations contained in Exhibit D as are to be performed by it prior to the
Lease Term, and shall complete its work not later than the Commencement Date,
Section 2.4. Existing Lease. Landlord and Tenant are currently parties to that certain
Shopping Center Sublease dated as of June 14, 1999, as amended by that certain First
Amendment to Lease dated as of September 21, 2006 (collectively referred to herein as the
"Existing Lease"), for certain premises consisting of approximately 13,331 square feet, including
a portion of the Leased Premises and certain additional premises referred to herein as the
"Sunender Premises", as depicted on Exhibit B attached hereto (the Surrender Premises and said
portion of the Leased Premises are collectively referred to herein as the "Existing Premises").
Prior to the Commencement Date, Tenant shall continue to occupy the Existing Premises subject
to the terms, covenants and conditions of the Existing Lease, except as otherwise expressly
provided in this L,ease. Tenant shall relocate Tenant's operations from the Existing Premises to
the Leased Premises, as more particularly described in Exhibit C and Exhibit D, remove all of
TenanYs trade fixtures, equipment and personal property from the Surrender Premises and open
for business to the public in the Leased Premises on the Commencement Date; provided,
however, that Tenant shall be permitted to store trade fixtures, equipment and other personal
property (including inventory) in a portion (as may be designated by Landlord from time to time)
of the space designated as "Available Anchor" on Exhibit D-1 for a period of fouReen (14) days
following the Commencement Date. Effective as of the Commencement Date, the Existing
Lease shall terminate and shall be of no further force or effect, and thereafter Tenant shall be
deemed to have surrendered possession of the Surrender Premises to Landlord, shall have no
right to possession of the Surrender Premises, and shall have no right to conduct operations or to
store any trade fixtures, equipment or personal property therein. Following the Commencement
Date, Landlord shall have right to remove and dispose of any of TenanYs trade fixtures,
equipment or personal property not removed from the Surrender Premises without liability to
Tenant therefor.
Section 2.5 Term of Lease. The Lease Term shall be fox the period specified in Section
1.1 supra, unless otherwise terminated or extended as provided herein.
Section 2.6. Definition of Lease Year. The term "I,ease Year" means a period of twelve
(12) consecutive calendar months, provided, however, that prior to the first Lease Year there
shall be a"Partial Lease Year" which shall commence on the Commencement Date and shall end
on October 31, 2012. The first L,ease Year shall commence on November 1, 2012 and shall end
on October 31, 2013, and each succeeding Lease Year shall commence upon the anniversary date
of the first full L,ease Year.
05392�007071910454-10 3
Section 2.7. Extension Options. Provided Tenant is not othenvise in default hereunder
beyond any applicable notice and cure period and is continuously operating in the Leased
Premises for the Permitted Uses at the time of Tenant's delivery of the First Extension Notice
(defined herein), Tenant shall have the option ("First Extension Option") to extend the Lease
Term for one (1) period of five (5) additional Lease Years (the "First Option Term"), subject to
the terms, conditions, covenants and provisions of this Lease. Tenant shall exercise the First
Extension Option by giving Landlord written notice thereof ("First Extension Notice") at least
three hundred thirty-five (335) days prior to tbe expiration of the initial I,ease Term. If Tenant
shall fail to timely deliver the First Extension Notice to Landlord, or if Tenant shall be in default
beyond any applicable notice and cure period at the time of Tenant's delivery of the First
Extension Notice, the First Extension Option shal] immediately become null and void.
In addition, provided Tenant has properly exercised the First Extension Option and
further provided Tenant is not otherwise in default hereunder and is continuously operating in the
Leased Premises for the Permitted Uses beyond any applicable notice and cure period at the time
of Tenant's delivery of the Second Extension Notice (defined herein), Tenant shall have the
option ("Second Extension Option") to extend the Lease Term for one (1) period of five (5)
additional Lease Years (the "Second Option Term"), subject to the terms, conditions, covenants
and provisions of this Lease. Tenant shall exeroise the Second Extension Option by giving
Landlord written notice thereof ("Second Extension Notice") at least at least three hundred thirty-
five (335) days prior to the expiration of the First Option Term. If Tenant shall fail to timely
delivec the Second Extension Notice to Landiord, or if Tenant shall be in default beyond any
applicable notice and cure period at the time of Tenant's delivery of the Second Extension
Notice, the Second Extension Option shall immediately become null and void.
Section 2.8. Fridlev 1998 L.L.C. Lease. It shall be an express condition precedent for
both Landlord and Tenant that Landlord and Fridley 1998 L.L.C. ("Cub") enter into a new lease
to reconfigure Cub's cunent premises in the Shopping Center (the "New Cub Lease"). Landlord
shall notify Tenant in writing upon the execution of the New Cub Lease and verify the New Cub
Lease by showing Tenant the face page and the signature page of the New Cub I,ease.
Section 2.9. Amendment and Restatement. This Lease hereby amends and restates in its
entirety that certain lease by and between Landlord and Tenant which was previously approved
by Tenant on Febivazy 13, 2012 but was not executed by Landlord. The pafties desire tQ here6y
amend certain provisions of such prior lease, as provided in this Lease.
ARTICLE III. CONSTRUCTION.
Section 31. Construction bv Landlord. Landlord will perform work in the Existing
Premises and the Leased Premises substantially in accordance with the outline specifications
described in the schedule entitled Description of Landlord's Work and attached hereto as Exhibit
C. Not later than the Commencement Date, Lndlord's architect will calculate the actual Floor
Area of the Leased Premises. If, pursuant to said calculation, the actual Floor Area of the Leased
Premises is less than or greater than that stated herein, then all applicable references to the Floor
Area of the Leased Premises shall be amended in accordance with said calculation; provided,
however, that if the square footage for the Leased Premises is equal to or greater than 10,300
square feet, then the Fixed Minimum Rent payable by Tenant under this Lease shall not be
oss9z�oo�o��9ioasa.io q
affected. If the square footage for the Leased Premises less than 10,300 then the Fixed Minimum
Rent shall be amended to be $10.43 multiplied by the actual number of square feet for the Leased
Premises. In determining the Floor Area of the Leased Premises, measurement shall be taken
from the outside surface of exterior walls and the center of interior dividing or demising walls.
Section 3.2. Construction bv Tenant. All work to be performed by Te�ant prior to the
Commencement Date shall be governed by Exhibit D attached hereto and made a part hereof.
Any work to be performed by Tenant following the Commencement Date shall be govemed by
Section B.LI of this I,ease.
Section 33. Renovation Allowance. Provided Tenant is not otherwise in default beyond
any applicable notice and cure period, Landlord will reimburse Tenant for a portion of the costs
incurred by Tenant in relocating or replacing or adding fixtures, equipment and merchandise to
the Leased Premises in the amount of up to Fifry Thousand and No/100 Dollars ($50,000.00) (the
"Renovation Allowance"), which amount shall be payable within forty-five (45) days following
the later to occur of (i) the Commencement Date and (ii) the date Tenant submits to Landlord a
written statement requesting such payment accompanied by paid invoices covering all costs
incurred by Tenant in connection with such work, certifies that the Shopping Center is free and
clear of all mechanics' liens and other encumbrances relating to such work by submitting a
commercially reasonable forrn reasonably acceptable to Landlord and Tenant, and provides to
Landlord waivers, affidavits and releases of lien from all of Tenant's contractors and material
suppliers relating to such work in form and substance reasonably satisfactory to Landlord.
ART[CLE IV. METHOD OF RENT PAYMENT.
Section 4.1. Fixed Minimum Rent. Tenant agrees to pay to Landlord, or to such other
persons as Landlord may direct, without demand, at the Address of Landlord or such place as
Landlord may by notice in writing to Tenant from time to time direct, Fixed Minimum Rent in
the amount specified in Section 1.1, payable in United States Dollars in advance in equal
successive monthly installments commencing on the first day of the Lease Term for the first
month of the Lease Term and thereafter on the first day of each calendar month of the Lease
Term. If the Lease Term commences on a day other than the first day of the month, the monthly
rent payment for the first month shall be pmrated on the basis of one-thirtieth (1(3�th) of said
monthly payrttent for each day of said month that is included in the Lease Term. Until notified
to the contrary by Landlord, Tenant shall pay all amounts payable under this Lease to Tri-Land
Developments, Inc., One Westbrook Corporate Center, Suite 520, Westchester, Illinois 60154-
5764.
Section 4.2. Delinquencv Charge For Late Rent Payment -- Retumed Check Charee. To
the extent permitted by law, to each and every payment of Rent which is not received by
Landlord when due, there shall be added a delinquency charge equal to ten percent (10%) of said
installment, payable immediately without the necessity of notice ox demand by Landlord as
additional Rent hereunder. In addition, Tenant shall pay Landlord as additional Rent the sum of
Twenty Five Dollars ($25.00) for each check given to Landlord by or on behalf of Tenant that is
returned unpaid due to insufficient funds or otherwise.
05392\00 70 719 104 5 4.10 5
Section 43. Definition of Rent. The term "RenY' means all amounts due Landlord from
Tenant under or pursuant to this Lease, including, without limitation, Fixed Minimum Rent,
amounts due on account of real estate taxes, Operating Costs and insuxance premiums.
Section 4.4. Fixed Minimum Rent Rebate. Provided that Tenant is not otherwise in
default under any provision of this Lease beyond any applicable notice and cure period, Tenant
shall be entitled to a partial rzbate of Fixed Minimum Rent (the "Rent Rebate"), calculated on a
daily basis, during the period commencing on November l, 2013 through October 31, 2018
("Rent Rebate Period"). During the Rent Rebate Period, the Rent Rebate shall be equal to One
Thousand and Nol100 Dollars ($1,000.00) per month for each calendar month (pro-rated for any
paRial month) following November 1, 2013 during which less than seventy-five percent (75%) of
the total floor area of the remaining existing building of the Shopping Center is leased and
occupied. The total Rent Rebate for each calendar year shall be calculated and paid to Tenant
within sixty (60) days follawing the end of such cafendar year. Landlord shall give Tenant
written notice of the first date on which seventy-five peroent (75%) or more of the total floor area
of the Shopping Center is leased and occupied (the "Minimum Occupancy Date"), following
which Minimum Occupancy Date Tenant shall have no further right to the Rent Rebate;
provided, however, if at any time following the Minimum Occupancy Date and prior to October
31, 2018 the total floor area of the Shopping Center which is leased and occupied is again less
than sevanty-five percent (75%), Landlord shall give Tenant prompt written notice thereof,
whereupon Tenant shall again be entitled to the Rent Rebate effective as of the date on which
less than seventy-five percent (75%) of the Shopping Center is leased and occupied until the
earlier to occur of: (a) the date on which Landlord gives Tenant written notice of the first date on
which seventy-five percent (75°fo) or more of the total floor area of the Shopping Center is again
leased and occupied, and (b) October 31, 2018. Notwithstanding anything set forth herein to the
contrary, the Rent Rebate shall terminate and be of no further force or effect following October
31, 2018.
ARTICLE V. OPERATION OF THE SHOPPING CENTER.
Section 51. Common Areas and Facilities. Landlord shall make available from time to
time such areas and facilities of the Shopping Center for the common benefit of the tenants and
occupants of the Landlord's Tract as Landlord shall deem appropriate. Landlord shall, subject to
the other provisions of this Lease, operate, manage, equip, heat, ventilate, cool, light, insure,
secure, repair and maintain such common areas and facilities of the Shopping Center for their
i�tended purposes in such manner as Landlord shall in its sole discretion determine, and may
from time to time change the size, location, use and nature of any common area and facility, sell
or lease any portion thereof, or assign the exclusive use thereof to one or more tenants; and may
make installations therein and move and remove such installations, including the installation of
kiosks, enclosed malls ar courts. Landlord shall designate a Landlord representative with whom
Tenant may communicate regarding Tenant's maintenance needs with respect to the Common
Areas. Tenant shall not be required to look to Cub or any other tenant of the Shopping Center for
performance of any required maintenance or repairs in the Common Areas which are Landlord's
obligations under this I.ease.
Section 5.2. Use of Common Areas. Tenant and its permitted concessionaires, officers,
employees, agents, customers and invitees shall have the non-exclusive right, in common with
oss9z�ao�o� i oasa. i o 6
Landlord and all others to whom Landlord has or may hereafter grant rights, to use such portions
of the common areas as designated from time to time by Landlord, subject to such reasonable
regulations as Landlord may from time to time impose including the designation of specific areas
in which cars owned by Tenant, its permitted concessionaires, officers, employees and agents
must be parked. Tenant agrees to abide by such regulations and to use its best efforts to cause its
permitted concessionaires, officers, employees, agents, customers and invitees to conform
thereto. Landlord may at any time close temporarily any common area to make repairs or
changes to prevent the acquisition of public rights in such area or to discourage noncustomer
parking; and may do such other acts in and to the common areas as in its judgment may be
desirable to improve the convenience thereof. Tenant shall upon request furnish to Landlord the
license numbers and description of the cars operated by Tenant and its permitted concessionaires,
officers, employees, and agents. Tenant shall not at any time interfere with tbe rights of Landlord
and other tenants, and their permitted concessionaires, officers, employees, agents, customers and
invitees, to use any part of the parking areas and other common areas. Landlord reserves the
right to grant to other tenants and third persons such exclusive and non-exclusive rights in the
common areas as from time to time the Landlord deems appropriate.
Section 53. Operatine Cost Payment. During each Landlord Fiscal Year (or portion
thereo� during the Lease Term following the Commencement Date, Tenant shall pay to Landlord
on account of Tenant's obligation under Seetion 5.4, the Operating Cost Payment which shall be
payable in equal monthly installments on the first day of every calendar month during the Lease
Term and a pro-rata sum for the partial month, if any, at the beginning of the Lease Term,
payabla on the Commencement Date. The Operating Cost Payment shall be equal to one-twelfrh
(1/12th) of the total annual Operating Costs, as estimated by Landlord, plus an Administrative
Charge equal to twelve and one-half percent (12.5%) of the foregoing. Following each Landlord
Fiscal Year, the Operating Cost Payment shall be adjusted upwards or downwards based on
Landlord's estimate of what the actual costs for the current Landlord Fiscal Year will be, as
defined in Section 5.4 hereof, including the appropriate Administrative Charges as herein
provided, which shall be payable retroactively to the first day of such Landlord Fiscal Year.
"Landlord Fiscal Year" shall mean the fiscal year established by Landlord in its sole discretion.
Section 5.4. Landlord's O�ratinE Costs. Tenant shall pay as additional Rent "Tenant's
Pro-Rata Share° (as such term is defined in Section I 1.1 of this Lease) of all reasonable costs and
expenses paid or incuned by Landlord during the Lease Term in operating, equipping, policing
(if and to the extent provided by Landlord), protecting, insuring, heating, cooling, lighting,
painting, cleaning, ventilating, repairing, replacing and maintaining the Shopping Center.
Operating Costs shall include, but not be limited to: (i) maintaining the enclosed Common Areas
including the sexvice corcidors and utility rooms that serve multiple tenants, (ii) traffic cantrol
including signage repairs and replacements, line painting, and temporary staffed traffic control
personnel; (iii) cleaning; repairing and maintaining foundations, walls, roofs, guriers,
downspouts, fascias, soffits, canopies; (iv) securiry, including security service personnel, security
camera and fire alarm systems, fire hydrants, sprinkler systems and other fire protection devices
and equipment (v) repair of water and sewer lines outside tenant spaces, including periodic
video line inspections and jetting; (vi) removal of rubbish and other refuse, not including the
removal of individual tenant trash pickup; (vti) pedestrian traffic direction and control; (vui)
exterior illumination of buildings and Common Areas, (viii) illumination and maintenance of
os39z�oo�a�v � oasa. i o �
Shopping Center signs; (ix) dirt, debris, snow and ice clearance; (x) planting, maintaining,
replanting and replacing flowers and other landscaping; (xi) water and sewage charges; (xii) the
costs associated with the operation of a maintenance shop including electricity, gas, telephone,
water and sewer charges, (xiii) premiums for mischief, vandalism, workers compensation,
employees' liability, property damage, casualty, liability and other insurance; (xiv) wages,
salaries and other personnel costs including costs of uniforms; wage, unemployment and social
security taxes for persons directly engaged in performing on-site maintenance and repair of the
Common Areas; (xv) required licenses and permits; supplies and hand tools; (xvi) all charges for
utility services, including maintaining lighting fixtures (including the cost of light bulbs and
electric current); (xvii) all costs, expenses, chargas, or other impositions or assessments incurred
by Landlord in connection with environmental protection legislation or regulation or imposed on
the Shopping Centex or any part thereof with regard thereta; and (xviii) reasonable depreciation
of or rents paid for the leasing of equipment used in the operation of the Shopping Center. The
following costs shall be excluded: (a) costs of equipment properly chargeable to Landlord's
capital awount and depreciation of the original cost of construcTing the Shopping Center as well
as the depreciation of all costs assoeiated with the remodeling of the Shopping Center scheduled
to begin in 2012; and (b) costs incurred in maintaining the roof and structure of the premises
leased by CLib. [n the event that any Operating Costs are incurred or increased as a result of the
particular needs of Tenant, Landlord reserves the right to charge Tenant for the full amount of
any Operating Costs incurred or increased as a result of Tenant's particular needs. Any Operating
Cost which is incurred or increased as a result of the requirements of more than one tenant may
be allocated among such tenants in a manner deemed equitable by Landlord. Landlord may, in
its sole and absolute discretion but subject to the provisions of Section 5.5 below, defer billing to
Tenant, all or any portion of any Operating Cost incurred in one Landlord Fiscal Year to future
Landlord Fiscal Years. In the event that any Operating Costs are incurred or increased as a result
of the particulaz needs of Tenant, Landlord reserves the right to charge Tenant for the full amount
of any Operating Costs incuned or increased as a result of Tenant's paRicular needs. Any
Operating Cost which is incurred or increased as a result of the requirements of more than one
tenant may be allocated among such tenants in a manner deemed equitable by Landlord.
In the event Operating Costs relating to outdoor areas and facilities are not separately
incurred for the Shopping Center but are incutted together with other areas within the vicinity of
the Shopping Center, then the cost allocable to the Shopping Center shall be an amount equal to
the product of such total cost multiplied by a fraction, the numerator of which shall be the square
footage of the outdoor area within the Shopping Center and the denominator of which shall be
the sum of the square footage of the outdoor area within the Shopping Center plus the square
footage of other outdoor areas outside the Shopping Center for which expenses have been
incurred and included within such total cost.
Section 5.5. Annual Operating Cost Budeet, Landlord's Statement. Prior to the
Commencement Date and not later than December 1 of each Landlord Fiscal Year thereafrer,
Landlord shall prepare and deliver to Tenant Landlord's budget for Operating Costs for the
immediately following calendar year (the "Annual Operating Cost Budget") which Annual
Operating Cost Budget shall represent Landlord's good faith estimate of Operating Costs by
category line item, based upon (except for the first full Landlord Fiscal Year and the Partial
oss9z�oo�o��stoasa.io g
Lease Year) the actual Operating Costs for the Shopping Center for the prior Landlord Fiscal
Year.
In the event any Annual Opexating Cost Budget ineludes a budgeted expenditure for a single
line item repair or replacement estimated to cost in excess of (a) $25,000.00 during the initial Lease
Term, (b) $30,000.00 in the First Option Term, or (c) $35,OOQ.00 during the Second Option Term,
Landlord shall provide Tenant with evidence of the need for such repair or replacement. In the
event that Tenant, in good faith, shall reasonably dispute Landlord's conclusion of the need for such
repair or replacement, Tenant shail notify the Landlord of such objection in writing within fifteen
(15) business days following Tenant's receipt of the Annual Operating Cost Budget ("TenanYs
Objection Notice"). Upo� Landlord's reaeipt of Tenant's notice, Landlord shall have the option to:
(i) delete such line item form the Annual Operating Cost Budget; (ii) amend the Annual Operating
Cost Budget to accommodate the rationale set forth in Tenant's Objection Notice; or (iii) provide
the Tenant with a professional evaluation of the condition and the recommendation for the repair or
replacement accompanied by an estimated cost to perform same, which evaluation and
recommendation shall be conclusive. In the event that Landlord fails to provide Tenant with the
aforementioned professional evaluation and recommendation within fifteen (15) days after
Landlord's receipt of Tenant's Objection Notice, the repair or replacement, as the case may be, shall
not be included in Operating Costs.
Notwithstanding an�4hing set forth in Section 5.4 to the contrary, in the event any item of
repair or maintenance is to be performed over a period of Landford Fiscal Years, the Annual
Operating Cost Budget for the first Landlord Fiscal Year in which such repair or maintenance is to
be performed shall separately identify the anticipated cost, timing and area of such work for each
Landlord Fiscal Year separately and the total for all Landlord Fiscal Years in such period.
In each Lease Year after the end of Landlord's Fiscal Year, and after the end of Landlord's
Fiscal Year following expiration or termination of the Lease Term, Landlord shall fumish Tenant
a statement, in reasonable detail, of (i) Landlord's actual �Jperating Costs paid or incurred by
Landlord, and thereupon there shall be an adjustment between Landlord and Tenant with
payment to or repayment by Landlord, as the case may be, to the end that Landlord shall receive
the entire amount of Tenant's Pro-Rata Share of Operating Costs plus twebe and one-half
percent (12S%) of the foregoing as the Administrative Charge. Any amount due from Tenant
shall be payable within ten (10) days following the rendition of Landlord's statement therefor.
Any amount due from Landlord shall be credited toward TenanYs next due Operating Cost
Payment, or at the termination of the Lease Term, payable to Tenant within ten (10) days
following the rendition of Landlord's statement described in this paragraph. The obligation of
Landlord or Tenant hereunder shall survive the expiration or earlier termination of the Lease
Term.
ARTICLE VI. UTILITY SERVICE.
Section 61. Utilities. Tenant agrees that throughout the Lease Term it wil] pay for and
provide its own water meter, water meter pit, and other meters, heat, air conditioning, water, gas,
electriciry and all other utilities, and Tenant further agrees that it will pay all water and sewage
charges imposed by government authority or otherwise. Tenant will not install or use any
os39z�oo�o7�9ioasa.io 9
equipment on the Leased Premises which may exceed the capacity of any utiliry facilities serving
the Leased Premises.
ARTICLE VII. LANDLORD'S ADDIT[ONAL COVENANTS.
Section 7.1. Repairs by Landlord. Landlord covenants to keep the foundations of the
Leased Premises and the structural soundness of the roof, concrete floors and exterior walls
thereof, in good order, repair and condition, unless any necessary work is required because of
damage caused by any act, omission or negligence of Tenant, any permitted concessionaire or
their respective employees, agents, invitees, licensees or contractors. Landlord shall not be
required to commence any such repair until a reasonable time after written notice from Tenant
that the same is necessary. The provisions of this Section 7.1 shall not apply in the case of
damage or destntction by fire or other casualty or a taking under the power of eminent domain, in
which events the obligations of Landlord shall be controlled by Article IX. Except as provided in
this Section 7.1, Landlord shall not be obligated to make repairs, replacements or improvements
of any kind upon the Leased Premises, or any equipment, facilities or fixtures contained therein,
which shall be the responsibility of Tenant as provided in Article VI[I, Subsections 8.1 F and G.
Section 7.2. Ouiet Enjovment. Landlord covenants that Tenant on paying the Rent and
performing Tenant's obligations in this Lease shal{ peacefully and quietly have, hold and enjoy
the Leased Premises throughout the Lease Term or until it is terminated as in this Lease
provided.
ARTICLE VIII. TENANT'S ADDITIONAL COVENANTS.
Section 8.1. Covenants. Tenant covenants at its expense at all times during the L,ease
Term and during any other time that Tenant enters upon the Leased Premises, including any
period prior to the Commencement Date:
A. To perform promptly all of the obligations of Tenant set forth in this
Lease, and to pay when due the Rent without notice and without any set-offs whatsoever.
B. To operate in the Leased Premises only under Tenant's Trade Name for the
Permitted Uses; to refrain from conducting any "going out of business", or bankruptcy or
similar distress sales.
C. To record and report all Gross Sales as provided herein:
(i) Within 5freen (IS) days afrer the end of each fiscal quarter, or portion
thereof, in the Lease Term, Tenant shall fumish Landlord a statement, certified by
Tenant's Director of Finance, of Tenant's Gross Sales during such quarter or portion
thereo£ As used herein, "Gross Sales" shall mean the total amount in dollars of the
actual sales price of all sales or rentals of inerchandise (including gift certificates sold in
or from the Leased Premises) and services, and all other receipts of business conducted
in ar from the L,eased Premises, including sales by any sublessee, concessionaire;
licensee and any other person or persons doing business in or from the Leased Premises.
05392\00707\910455.10 ] Q
(ii) In the event any sublessee, concessionaire, licensee or other person or
persons shall do business in or from the Leased Premises, Tenant is responsible for
ensuring that such parties' records and statements conform to the requirements in this
Article N. The failure of any such party to maintain records and statements as required
hereunder, or to correctly repoR gross sales, shall be deemed a failure on the part of
Tenant to conform to the requirements of this Article and shall subject Tenant to the
remedies set forth in the Lease.
D. To fully perforrn Tenant's Work in accordance with the terms set forth in
this Lease and E�ibit D and open for business to the public in the Leased Premises fully
fixtured, stocked and staffed on the Commencement Date for one (1) day; unless Tenant
has propedy exercised its option to Go Dark as provided herein, to use and continuously
operate for a minimum of at least eight (8) hours per day for six days per week (excluding
therefrom (i) legal holidays, (ii) other days where the sale is prohibited by Minnesota Law
and (iii) days on which Tenant is prevented from operating the Leased Premises due to
Force Majeure (defined herein)) for retail sales purposes all of the Leased Premises other
than such minor portions thereof as aze reasonably required for storage and office
purposes, except when and to the extent that the Leased Premises are untenantable by
reason of damage by fire or other casualty, to identify the Leased Premises with signage
in accordance with the terms o£ this Lease; to open for business and remain opan during
the entire Lease Term; and to light its signs and its display windows, if any, during the
hours the Leased Premises are open for business. As used herein, "Force Majeure" shall
mean casualty or delays caused by any governmental or quasi-governmental entity;
shortages of materials, natural resources or labor; fire; catastrophe; labor strikes; civil
commotion; riots, war, acts of God; govemmental prohibitions or regulations; or any and
all other extraordinary causes (but not including financial inability.)
Tenant shall have the option to cease operations and/or vacate the Leased
Premises ("Go Dark") by giving Landlord not less than sixty (60) days prior wcitCen
notice of the date on which Tenant shall Go Dark (the "Go Dark Notice"). In the event
that Tenant delivexs a Go Dark Notice, following the ninetieth (90�h) consecutive day that
the Leased Premises are closed for business (except for periods during which the Leased
Premises are untenantable by reason of damage by fire or other casualty, or periods of
xemodeling not to exceed thirty (30) consecutive days), Landlord shall have the right to
terminate the Lease and recapture the Leased Premises by giving Tena�t written notice
thereof ("Landlord's Termination Notice"), whereupon the Lease shall terminate effective
as of the date specified in Landlord's Termination Notice. In the event Tenant elects to
Go Dark as provided in this Section 8.1.D, Tenant shall remain fully liable to perform all
of its obligations under this Lease, including but not limited to Tenant's obligation to pay
Rent and all other charges due hereunder until the earlier of (a) the expiration of the then
current Lease Term or (b) the date set forth in Landlord's Termination Notice, in the event
Landlord elects to terminate the Lease as provided herein. In the event that Landlard
terminates the Lease as provided herein, Tenant shall sunender the Leased Premises in
the condition xequired pursuant to Section S.LM of this I,ease not later than the date
specified in Landlord's Termination Notice.
oss9z�omor�ioasa_�o 11
E. To store all trash and refuse in adequate containers within the Leased
Premises which Tenant shall maintain in a neat and clean condition and so as not to be
visible to members of the public shopping at the Shopping Center and so as not to create
any health or fire hazard, and to attend to the dai(y disposal thereof in the manner
designated by Landlord; to comply with any recycling program; to keep all drains inside
the Leased Premises clean; to receive and deliver goods and merchandise only in the
manner and at such times and in such areas as may be designated by Landlord; and to
conform to all rules and regulations as set forth in Exhibit F hereto and to all reasonable
and nondiscriminatory rules and regulations which Landlord may make.
F.
(i) To maintain in good order, condition and repair, the Leased Premises,
including the store front or store fronts, plate glass, window cases; or window frames,
doors or door frames, and the pipes, plumbing, glass, store-fronts, electric wiring, air
conditioning and heating equipment, boilers, motors, engines, ta�ks, machinery,
fixtures, appliances and appurtenances belonging thereto installed for use in
connection with the Leased Premises, including the repair, maintenance and periodic
cleaning of TenanYs fascia and undercanopy or soffit signs, and tbe maintenance and
repair of any sewer ejection system serving the Leased Premises whether located
within or outside of the Leased Premises, and to refrain from overloading the floors; to
take reasonable measures to prevent mold conditions from occurring and to take
reasonable actions to remediate any mold conditions that occur as a result of Tenant's
acts or omissions; to refrain from bringing, or disposing of, any Hazardous Substances
(the term "Hazardous Substances' shall include any hazardous or toxic substance,
material or waste which is declared to be "toxid' ox "hazardous [or words of similac
import], or is otherwise regulated as such under any law, ordinance or regulation now
or hereafter enacted or promulgated by any lawful authority) into or at the Leased
Premises or the Shopping Center (a�d to prohibit their agents, employees and
contractors from doing so), other than de minimis amounts, and to remediate any
Hazardous Substances introduced into the Leased Premises or the Shopping Center by
Tenant (or its agents, employees or contractors); to make as and when needed by
contractors or mechanics approved by Landlord, all repairs in or about the Leased
Premises a�d in and to all such equipment, fixtures, appliances and appurtenances
necessary to keep the same in good order and operating condition. Tenant shall give
Landlord prior written notification of any repair work to be performed on the Leased
Premises. All repairs made by Tenant shall be equal in quality and class to the original
work, and shall be performed and completed in accordance with all applicable statutes,
ordinances, regulations and codes, including those governing the handling, care and
removal of any materials involved in or affected by such repairs. When used in this
Lease the term 'Yepairs" shall include all replacements, renewals, alterations, additions
and betterments.
(ii} To keep in effect, at its sole oost and expense, a maintenance agreement
with a reputable and qualified contractor approved by Landlord providing for periodic
(at least semi-annual) servicing and xepair of the heating, ventilating and air
oss9zwmo�� i oasa. i o 12
conditioning ("HVAC") system serving the Leased Premises. Tenant shall provide
Landlord with semi-annual reports not later than October 15 and April 15 of each
Lease Year on the condition and maintenance report form provided by Landlord to
Tenant, summarizing the condition of the HVAC, the maintenance performed on the
HVAC during the period since the last report and the recommendations for the
maintenance to be performed for the succeeding six month period.
G. To promptly comply with all present and future laws, ordinances, orders,
rules, regulations, and requirements (collectively hereinaier referred to as "Orders") of all
federal, state, municipal and local govemments, departments, commissions, boards and
officers, and all Orders of Landlord's and Tenant's insurance carriers whether foreseen or
unforeseen, ordinary as well as extraordinary, which may be applicable to the Leased
Premises or Tenant's use thereof.
H. To exterminate all insects or vermin, if the same infest the Leased
Premises and to employ such exterminators and such exterminating company or
companies as shall be approved by Landlord.
1. To refrain from making any alterations to the Leased Premises, or any
penetrations to the roof or floor slab of the Leased Premises, without the Landlord's prior
consent and compliance with the following requirements of the Lease and subject to any
of Landlord's conditions to granting such consent; to pay promptly when due the entire
cost of any work in the Leased Premises undertaken by Tenant so that the Leased
Premises, including Tenant's leasehold estate shall at all times be free of liens for labor
and materials; to procure and provide copies to Landlord of all necessary permits before
undertaking such work; to do all of such work in a good and workmanlike manner,
employing only new materials and new fixtures of good quality; to procure Builder's Risk
insurance whenever appropriate in amounts and with companies satisfactory to Landlord;
to perform such work only with contractors, plans and specifications previously approved
in writing by Landlord and to comply with the requirements of Exhibits D and E; to
perform and complete such work in accordance with all applicable statutes, ordinances,
regulations and codes, including those governing the handling, care and remova] of any
materials involved in or affected by such work; and to defend and save Landlord and
Landlord's beneficiaries and agents harmless and indemnified from all injury, loss, claims
or damage to any person or property occasioned by or growing out of such work.
J. Except fox injury, loss, elaims or damage resulting from the negligence or
intentional misconduct of Landlord, to defend and save Landlord, Landlord's beneficiaries
and agents, their respective officers, employees, shareholders, directors, partners,
managers and members and their respective successors and assigns, harmless and
indemnified from all injury, loss, claims or damage to any person or properey while on the
Leased Premises or any other part of the Shopping Center occasioned by an act or
omission of Tenant, or of anyone claiming by, through or under Tenant, and any injury or
damage to any person or propeRy occurring in, on or about the Leased Premises or any
part thereof and any injury, loss, claims or damage arising from TenanYs breach of this
Lease; to obseroe and comply with the requirements of all policies of public liability, fire
05392�00707\910494.10 � 3
and all other policies of insurance at any time in force with respect to the Shopping
Center or any part thereof; to maintain the following insurance:
(i) Commercial general liability ("CGL") insurance cvritten on an
occurrence basis, including such endorsements as Landlord may require, covering the
Leased Premises and all operations of Tenant in or about the Leased Premises and
anywhere upon Landlord's Tract, against claims for bodily injury, property damage and
product liability and to include contractual liability coverage insuring Tenant's
indemnification obligations under this Lease, to be in combined single limits of not
less than $1,000,000 each occurrence for bodily injury and property damage,
$1,000,000 for products/completed operations aggregate, $1,000,000 for personal
injury, and to have general aggregate limits of not less than $2,000,000 (per Iocation)
and Umbrella Lia6i(ity Insurance in an amount not less than $1,000,000 for each
policy year. The general aggregate limits under the CGL insurance policy or policies
shall apply separately to the Leased Premises and to Tenant's use thereof (and not to
any other location or use of Tenant) and such policy shall contain an endorsement to
that effect. Landlord shall have the right to direct Tenant to increase said amounts
whenever it considers them inadequate;
(ii) Property insurance with "Special Form Causes of Loss" covecage
adequate to cover the replacement cost of all of Tenant's stock in trade, fixtures,
furniture, furnishings, floor coverings and equipment in the Leased Premises, with a
deductible not exceeding $5,000.00 per occurrence and with the insurer's waiver of any
coinsurance provisions, and plate glass insurance covering all exterior plate glass in
the Leased Premises.
(iii) Workers' compensation insurance coverage covering all persons directly
employed by Tenant and with respect to which death or injury claims could be asserted
against Tenant, Landlord or the Shopping Center or any interest therein, with limits not
less than as required by applicable law and regulations, together with an employers
liability limit of not less than $500,000 per accidenUdisease/policy.
All of said insurance shall be in form and in responsible companies satisfactory
to Landlord with an A.M. Best Rating or its equivalent of A-VIll or better and shall
provide that it will not be subject to cancellation, termination or change except afrer at
least thiRy (30) days prior written notice to Landlord. The policies or duly executed
certificates for the same (which certificates shall evidence the insurer's waiver of
subrogation) together with a copy of an additional insured endorsement (except with
respect to the workers' compensation coverage) naming Landlord, Landlord's
mortgagees, beneficiaries and agents, as theix interests may appear, and satisfactory
evidence of the payment of premiums thereon, shall be deposited with Landlord no
later than the day Tenant begins TenanYs GVork, and upon renewals of such policies,
not less than thirty (30) days prior to the expiration of the term of such coverage. If
Tenant fails to comply with such requirements, Landlord may obtain such insurance
and keep the same in effect and Tenant shall pay Landlord the premium cost thereof
upon demand. Each such payment shall constitute additional rent payable by Tenant
under this Lease.
Oi392\0090T910454_I O 14
In the event Tenant's occupancy or operation causes any increase of premium
for the fire and extended coverage and/or casualty rates on the Leased Premises or
Shopping Center or any part thereof above the rate for the least hazardous type of
occupancy legally permitted in the Leased Premises, or premium for the rent insurance
policy that may be carried by Landlord, Tenant shall pay the additional premium on the
fire, boiler and/o� casualty insuraace policies 6y reason thereof within ten (10) days
following the billing thereof as additional rent.
K. To waive all claims for damage to Tenant's business or person or property
sustained by Tenant or any person claiming through Tenant resulting from any accident or
occurrence in or upon the Leased Premises or the building of which they shall be a part,
or any other paR of the Shopping Center, to waive all claims for damage attributable to
any act, omission or negligence by other tenants of the Shopping Center.
L. To permit Landlord, Landlord's mortgagee and their agents to enter the
Leased Premises at reasonable times after providing notice to Tenant for the purpose of
inspecting same, making repairs, additions or alterations thereto or to the building in
which the same are located and showing the Leased Premises to prospective purchasers,
lenders and tenants. Upon the failure of Tenant to operate in the Leased Premises for a
period of forty-eight consecutive hours, and provided Tenant has vacated the Leased
Premises, in whole or in part, during such period, Tenant hereby authorizes Landlord to
enter the Leased Premises and to take such action as Landlord deems necessary or
prudent to secure the Leased Premises. The parties hereby acknowledge that Landlord's
entry hereunder shall not affect Landlord's other rights and remedies in this Lease nor are
the rights herein granted to Landlord intended to abridge any requirements of applicable
law for Landlord to gain possession of the Leased Premises by process of law; it being the
intention of the parties that Landlord have this limited right of access to assist Tenant
with xespect to Tenant's obligation to secure, protect and preserve the Leased Premises.
M.
(i) To surcender, at the termination of this Lease, the L,eased Pxemises in a
broom-clean condition, free of debris and in the same condition (subject to the
removals hereinafter required) as the Leased Premises were on the date Tenant opened
the Leased Premises for business to the public, reasonable wear and tear excepted,
with all holes in walls patched, taped and sanded ready £or paint, and to surrender al]
keys for the Leased Premises to Landlord at the place then fixed for the payment of
cent, and to inform Landlord of all combinations on locks, safes and vau{ts, if any, in
the Leased Premises; to remove, during the Iast thirty (30) days of the Lease Term, all
of Tenant's trade fixtures, and to the extent required by Landlord by written notice, any
other installations, alterations, improvements, wall coverings or floor coverings (and
any adhesives relating thereto) before surrendering the Leased Premises as aforesaid
and to repair any damage to the Leased Premises or the Shopping Center caused
thereby. Any alterations; changes, additions and improvements (specifically including,
by way of example, light fixtures and heating and air conditio�ing equipment) shall
immediately upon the termination of this Lease, at Landlord's option, become
Landlord's property, be considered part of the Leased Premises, and shall not be
05392\00707\910454.10 � 5
removed at or prior to the end of the Lease Term without Landlord's written consent
unless Landlord requests Tenant to remove same. If Tenant fails to remove any
shelving, decorations, equipment, trade fixtures or personal property from the Leased
Premises upon the end of the Lease Term, at Landlord's option they shall become
Landlord's property and Tenant shall pay for the repair of any damage done to the
Leased Premises or Shopping Center and the costs incurred resulting from the removal
of the same.
(ii) To remove, at the termination of this Lease, Tenant's sign from the
fascia above the storefront of the Leased Premises, and any other signs Landlord may
have permitted Tenant to affix to any wall surface in the Shopping Center, and to
reimburse Landlord for the cost incurred by Landlord to repair, restore, repaint and/or
re-stain the fascia necessitated by the removal of such signs. The under canopy soffit
sign (other than Tenant's removable name panels) shall cemain and upon termination
of the Lease shall become the propeRy of Landlord.
N. Recognizing that this L,ease and the rights and interests of Tenant under
this Lease are and shall be subject and subordinate to any mortgages or trust deeds which
Landlord has placed or may place upon the Landlord's Tract and the Leased Premises,
and to any advances made thereunder, and to the interest thereon, and all extensions
thereof, to execute and deliver whatever instruments may be required to evidence same.
In the avent Tenant fails to execute and deliver such instruments evidencing that this
Lease is subordinate within ten (10) days after demand in writing, Tenant does hereby
make, consCitute and irrevocably appoint Landlord as its attorney in fact and in its nama,
place and stead so to do without prejudice to Landlord's remedies underthis Lease which
are cumulative. Tenant acknowledges and agrees that this Lease is subject and
subordinate to any such future or existing mortgages or trust deeds, and to any advances
made thereunder, and to the interest thereon, and all extensions thereof, without the need
for a separate instrument evidencing same. If any foreclosure or power of sale
proceedings are initiated by the holder of any such mortgage or the trustee under any such
trust deed, or a deed in lieu is granted, Tenant agrees, upon written request of any such
holder or trustee, or purchaser at such sale, to attorn and pay Rent to such party and to
execute and deliver any instruments necessary or appropriate to evidence or effectuate
such attornment. In the eveni of attornment, no holder of any such mortgage or
beneficiary under any such trust deed, or purchaser at such sale shall be: (i) liable for any
act or omission of Landlord, or subject to any offsets or defenses which TenanY might
have against Landlord (prior to such holder, beneFciary or purchaser becoming Landlord
under such attornme�t), (ii) liable for any security deposit or bound by any prepaid Rent
not actually received by such holder, beneficiary or purchaser, or (iii) bound by any
modification or amendment of this Lease not consented to by such holder, beneficiary or
purchaser. Tenant agrees to give the holder oY any such mortgage or the trustee under any
such trust deed by certified mail, return receipt requested, a copy of any notice of default
served by Tenant upon Landlord, provided that prior to such notice Tenant has been
notified in writing (by way of service on Tenant of a copy of an assig�ment of leases, or
otherwise) of the name and address of such holder or trustee. Tenant further agrees that if
Landlord shall have failed to cure such default within the time permitted Landlord for
0539?\007G71910454.10 1(
cure under this Lease, any such holder or trustee whose address has been so provided to
Tenant shall have an additional period of thirty (30) days in which to cure (or such
additional time as may be required due to causes beyond the control of such holder or
trustee, including time to obtain possession of Landlord's Tract by power of sale or
judicial action). To the extent not expressly prohibited by law, Tenant waives the
provisions of any law now or hereafter adopted which may give or purport to give Tenant
any right or election to terminate or otherwise adversely affect this Lease or TenanYs
obligations hereunder if foreclosure or power of sale proceedings are initiated, prosecuted
or completed.
Any mortgagee or trustee may elect also to give the rights and interest of Tenant
under this Lease priority over the lien of its mortgage or trust deed. Such election shall be
effective upon written notice to Tenant.
O. To pay to Landlord Tenant's Pro-Rata Share of the real estate taxes (to the
extent not paid pursuant to Article V, suara.), during the Lease Term, and any renewal or
extension thereof, including any period during which Tenant shall transact business in the
Leased Premises prior to the Commencement Date. The term "real estate taxes" shall
include all real estate taxes, assessments, levies and other governmental impositions and
charges which shall or may, during the Lease Term, be levied, assessed, imposed, become
due and payable, or liens upon, or arise in connection with, the use, occupancy or
possession of the Shopping Center, including all costs incuned by Landlord in contesting
or negotiating the same before ar after assessments with governmental authorities.
Tenant agrees to pay to the Landlord one-twelfth (1/12) of the "Initial Real Estate
Tas Payment" as such term is herein defined) on the first day of each calendar month
commencing upon the Commencement Date as its estimated payment for real estate taxes
for the first calendar year or portion thereof included in the I,ease Term. The term "Initial
Real Estate Tax Payment" shall mean and be equal to an amount estimated by Landlord to
be Tenant's real estate tax liability for the first calendar year or portion thereof included in
the Lease Term. For each calendar year thereafter, Tenant shall pay Landlord monthly
one-twelfth (Ul2th) of the amount estimated by Landlord to be Tenant's real estate tax
liability in respect of each such calendar year. Any amount paid by Tenant which exceeds
tbe true amount due shall be credited on the next succeeding payment due pursuant to this
Section. If Tenant has paid (ess tha� the amount due, Tenant shall pay the difference
within ten (10) days of receipt of notice from Landlord. This covenant shall survive the
expiration or earlier termination of the Lease Term. If the Lease Term shall begin or end
other than on the first or last day of a calendar year, such charges shall be billed and
adjusted on the basis of such fraction of a calendar year. Should the taxing authority
include in such real estate taxes, machinery, equipment, fxtures, inventory or other
personal property or assets of Tenant, then Tenant shall pay the entire real estate taxes for
such items.
P. To remain fully obligated under this Lease norivithstanding any
assignment or sublease or any indulgence granted by Landlord to Tenant or to any
assignee or sublessee, but nothing contained in this subparagraph shall be construed to
permit any assignment or sublease by Tenant.
osa9z�oo�o��9�oasa �o � �
Q. Intentionally Omitted.
R. To refrain from assigning, selling, mortgaging, pledging, or in any manner
transferring this Lease or any interest therein, by operation of law or otherwise; to refrain
from subletting the Leased Premises or any portion or portions thereof; to refrain from
permitting occupancy by anyone with, through or under it�
S. Not to suffer any mechanic's lien to be filed against the Leased Premises or
the Shopping Center by reason of any work, labor, services or materials performed at or
fumished to the Leased Premises, to Tenant, or to anyone holding the Leased Premises
through or under the Tenant. If any such mechanids lien shall at any time be filed,
Tenant shall forthwith cause the same to be discharged of record by payment or order of a
court of competent jurisdiction or otherwise, but Tenant shall have the right to contest any
and all such liens, provided security satisfactory to Landlord is deposited with Landlord
within fifteen (15) days after the filing of such ]ien. If Tenant shall fail to cause such a
lien to be discharged within thirty (30) days after the filing thereof and before judgment
or sale thereunder, then, in addition to any other right or remedy of Landlord, Landlord
may, but shall not be obligated to, discharge the same by paying the amount claimed to be
due or by bonding or other proceeding deemed appropriate by Landlord in Landlord's
absolute discretion, and the amount so paid by Landlord and all costs and expenses
incurred by Landlord in procuring the discharge or bonding of such lien, shall be deemed
to be additional rent and together with interest thereon at the Lease [nterest Rate from
date of payment shall be due and payable by Tenant to Landlord within ten (10) days of
the rendition of Landlord's statement therefoc "Lease Interest Rate" shall mean interest at
the lesser of (i) the rate per annum equal to two (2) percentage points above the rate of
interest then most recently publicly announced by JPMorgan Chase Bank, N.A. (or its
successor) as its "prinie rate" or "base rate" (the "Prime Rate"), as the case may be, and
(ii) the maximum legal rate. Nothing herein shall be construed as a consent on the part of
Landlord to subject Landlord's estate in the Leased Premises to any lien or liability under
the mechanic's lien law of Minnesota.
T. To pay on demand Landlord's costs, charges and expenses, including
reasonable attorneys' fees, expenses and administrative charges (which shall also include,
without limitation, time charges of attorneys and paralegal administrators who may be
employees of Landlord or its managing agent), which may be imposed on, incurred by, or
assefted hearing and court costs incuned either directly or indirectly in any negotiations
or transactions in which Landlord, without its fault, becomes involved or concerned by
reason of this Lease, in enforcing any obligation of Tenant under this Lease, in curing any
default by Tenant, in connection with appearing, defending or otherwise participating in
any action or proceeding arising from the filing, imposition, contesting, discharging or
satisfaction of any lien or claim for lien, in defending or otherwise participating in any
legal proceedings initiated by or on behalf of Tenant wherein Landlord is not adjudicated
to be in default under this Lease, or otherwise arising from or incurred because of
TenanYs failure to comply with any provisions of this Lease or in connection with any
investigation or review of any conditions or documents in the event Tenant requests
05392100707\910454.10 I 8
Landlord's approval or consent to any action of Tenant which may be desired by Tenant
or required of Tenant hereunder.
U. To refrain from recording this Lease.
ARTICLE IX. DAMAGE OR TAKING AND RESTORATION.
Section 91. Fire, Explosion or Other Casualtv. In the event the I,eased Premises are
damaged by fire, explosion or any other casualty to an extent which is less than twenty five
percent (25%) of the insurable value of the Leased Premises, the damage shall be promptly
repaired by Landlord at Landlord's expense upon receipt by Landlord ofinsurance proceeds for
such damage; provided that Landlord shall not be obligated to expend for such repair an amount
in excess of the insurance proceeds recovered as a result of such damage and that in no event
shall Landlord be required to repair or replace TenanYs stock in trade, fixtures, furniture,
fumishings, floor coverings and equipment. In the event of any such damage and (a) Landlord is
not required to repair as hereinabove provided or (b) the Leased Premises shall be damaged to the
extent of twenty-five percent (25%) or more of the insurable value, or (c) the building which the
Leased Premises are a part is damaged to the extent of twenty-five percent (25%) or more of the
insurable value, or (d) the buildings (taken in the aggregate) in the Shopping Center shall be
damaged to the extent of twenry-five percent (25%) or more of the aggregate insurable value,
Landlord may elect either to repair or rebuild the Leased Premises or the building or buildings, or
to terminate this Lease upon giving notice of such electian in writing to Tenant within ninety (90)
days afrer the occunence of the event causing the damage. In the event Landlord terminates this
Lease as provided in the preceding sentence, TenanYs obligation to pay Fixed Minimum Rent or
Tenant's Pro-Rata Share of Operating Costs shall cease as of the date when the damage occuned.
ffthe casualty, repairing or rebuilding shall render the L,eased Premises untenantable, in whole or
in part, and the damage shall not have been due to the default or neglect of Tenant, a pro-
portionate abatement of the Fixed Minimum Rent and Tenant's Pro-Rata Share of Operating
Costs shall be allowed from the date when the damage occuned until the date Landlord
completes its work, said proration to be computed on the basis of the relation which the gross
square foot area of the space rendered untenantable bears to the Floor Area. No abatement of
rent, proportionate or otherwise, pursuant to this Section 9.1 shall have any effect upon or be
viewed as a waiver by either party of any rental value insurance maintained by such party relative
to this Lease. If Landlord is required or elects to repair the Leased Premises as herein provided,
Tenant shall repair or replace its stock in trade, fixtures, furniture, fumishings, floor coverings
and equipment, and if Tenant has closed, Tenant shall promptly reopen for business.
Section 9.2. Eminent Domain. If the whole of the Leased Premises shall be taken by any
public authority under the power of eminent domain, the Lease Term shall cease as of the day
possession shall be taken by such public authority, and Tenant shall pay rent up to that date with
an appropriate refund by Landlord of such rent as may have been paid in advance for any period
subsequent to the date possession is taken.
ARTICLE X. DEFAULTS BY TENANT AND REMEDIES.
Section 10.1. Defaults bv Tenant. If (i) Tenant vacates or abandons the Leased Premises
or permits the same to remain vacant or unoccupied or fails to be continuously open for business
05392�007Q7'3104id.la 19
for a period of five (5) days, or (ii) Rent or any part thereof shall be unpaid for five (5) days after
written notice thereof to Tenant, or (iii) default shall be made in the prompt and full performance
of any covenant, condition or agreement of this Lease to be kept or performed by Tenant and
such default or breach of perforrrtance shall wntinue twenty (20) days (unless the default
involves a hazardous condition, which shall be cured immediately) after written notice to Tenant,
specifying such default or breach of performance, or (iv) any proceedings shall be commenced to
declare Tenant or any Guarantor bankrupt or insolvent or to obtain relief under any chapter or
provision of any bankruptcy or debtor relief law or act or to reduce or modify the debts or
obligations of Tenant or any Guarantor or to delay or extend the payment thereof, or if any
assignment of the property of Tenant or any Guarantor be made for the benefit of creditors, or if a
receiver or trustee be appointed for Tenant or a Guarantor or the property or business of Tenant
or a Guarantor, or (v) any Guarantor shall die, then Landlord may treat the occurrence of any one
or more of the foregoing events as a breach of this Lease and thereupon at its option, without
further notice or demand of any kind to Tenant or any other person, may have, in addition to all
other legal or equitable remedies, the following described remedies:
A. La�dlord may elect to terminate this Lease and the Lease Tetm created hereby
in which event Landlord forthwith may repossess the Leased Premises and Tenant shall
pay at once to Landlord as liquidated and final damages, a lump sum of money equal to
the discounted present rental value of the Rent for the balance of the stated term of this
Lease less the fair rental value of the Leased Premises for said period.
B. Landlord may elect to termioate Tenant's right of possession without
terminating this Lease or releasing Tenant in whole or in part from Tenant's obligations
under this Lease, in which event Tenant agrees to surrender possession and vacate the
I,eased Premises immediately and deliver possession thereof to Landlord, and Tenant
hereby grants to Landlord full and free license to enter into and upon the Leased
Premises, in whole or in part, with or without process of law and to repossess Landford of
the Leased Premises. In any such case, Landlord shall, to the extent required by
applicable law, if any, attempt to relet the Leased Premises and Tenant shall pay to
Landlord each month, any deficiency between (a) the Fixed Minimum Rent and additions
thereto calculated based on the then current Operating Costs, insurance and real estate tax
payments, for the residue of the Lease Term plus any other sums then due hereunder,
without prejudice to Landlord's rights to collect additional sums which may hereafter
become due including without limitation Tenant's Pro Rata Share of Operating Costs and
insurance eapenses and real estate taxes for the balance of the Lease Term and (b) the
payments, if any, received by Landlord from any reletting of the Leased Premises.
Tenant hereby expressly waives the service of any notice of any election made by
Landlord under this Section 10.1, demand for payment of Rent or for possession, except
the particular demands and notices as may in this Lease be specified.
Upon and after entry into possession without terminating the Lease, Landlord
shall, to the extent required by applicable law, if any, attempt to relet all or any part of the
Leased Premises for the account of Tenant for such rent and upon such terms and to such
person, firm or corporation and for such period or periods as Landlord in Landlord's sole
discretion shall determine. If the consideration collected by Landlord upon any such
os39awo�ons�oasa.io Zp
reletting for TenanEs account is not sufficient to pay the Rent reserved in this Lease plus
the cost of repairs, alterations, additions, redecorating and Landlord's other expenses,
Tenant agrees to pay to Landlord the deficiency upon demand.
The Landlord may collect and receive any Rent due from Tenant and the payment
hereof shall not constitute a waiver of any existing default by Tenant or affect any notice
ot demand given, suit instituted or judgment obtained by Landlord, or be held to waive,
affect, change, modify or alter the rights or remedies which Landlord has in equity or at
law or by virtue of this Lease. Payment by Tenant or receipt by Landlord of a lesser
amount than any installment or payment due shall be deemed on account of, but not
satisfaction of, the amount due, and no endorsement or statement on any check or any
transmittal document accompanying any check or payment of any amount due shall be
deemed an accord and satisfaction. Landlord may accept such check or payment without
prejudice to Landlord's right to recover the balance of any amount due or pursue any other
remedies available to Landlord.
Section 10.2. Holdover bv Tenant. [n the event Tenant remains in possession of the
Leased Premises after the expiration of the tenancy created hereunder, and without the execution
of a new lease, Tenant, at the option of Landlord, shall be deemed to be occupying the Leased
Premises as a tenant from month-to-month, at twice the monthly Rent (i.e. Fixed Minimum Rent
and charges for real estate taxes, Operating Costs and insurance charges), subject to all the other
conditions, provisions and obligations of this Lease insofar as the same are applicable to a
month-to-month tenancy. Additionally, and regardless of whether Landlord exercises the option
set forth in the immediately preceding sentence, Tenant shall be tiable for any consequential
damages, including attorneys' fees, incurred by Landlord as a result of TenanPs failure to
surrender possession of the Leased Premises upon expiration of the Lease Term.
Section 103. Landlord's Rieht to Cure. Landlord may, but shall not be obligated to,
cure, at any time, without notice, any faifure by Tenant to perform any obligation under this
Lease; and whenever Landlord so elects, all costs and expenses incurred by Landlord, including,
without limitation reasonable attorneys' fees together with interest on the amount of costs and ex-
penses so incurred at the Lease Interest Rate shall be paid by Tenant to Landlord on demand.
Section ] 0.4. Effect of Waivers of Default. No consent or waiver, express or implied, by
Landlord to or of any breach of any covenant, condition or duty of Tenant shall be construed as a
consent or waiver to oc of any other breach of the same or any other covenant, condition or duty.
Section 10.5. Intentionally Omitted.
ARTICLE XI. MISCELLANEOUS PROVISIONS.
Section 11.1. Calculation of Pro-Rata Shares.
A. "Tenant's Pro-Rata Share" of Operating Costs shall be equal to the product of
(a) the amount of said Operating Costs, and (b) a fraction, the numerator of which is the
Floor Area of the Leased Premises and the denominator of which is the total floor area in
the Shopping Center contributing to such Operating Costs. Notwithstanding the
05392�00707\910454.10 21
foregoing to the contrary, to the extent that Landlord performs any maintenance, repair or
replacement that serves Tenant and fewer than all of the tenants at the Shopping Center,
TenanYs Pro-Rata Share with respect to said maintenance, repair or replacement shall be
shall be based on a fraction, the numerator of which is the Floor Area of the Leased
Premises and the denominator of which is the total floor area of the premises served by
such maintenance, repair or replacement.
B. "Tenant's Pro-Rata Share" of real estate taxes shall be equal to the product of
(a) the amount of said real estate taxes, and (b) a fraction, the numerator of which is the
Floor Area of the Leased Premises and the denominator of which is the total floor area of
the buildings comprising the tax parcel of which the Leased Premises are a part.
Section 11.2. Mutual Waiver of Subroeation. Whenever (a) any loss, cost, damage or
expense resulting from fire, explosion or any other casualty or occurrence is incurred by either of
the parties to this Lease or any party daiming by through or under Landlord or Tenant, as the
case may be, their respective property, their respective businesses, the Shopping Center or the
Leased Premises or any addition or improvements thereto, or any contents therein, and (b) such
party is then required under the terms of this Lease to maintain insurance with respect to such
loss, cost, damage or expense, then the party required to be so insured hereby releases the other
party from any liability it may have on account of such loss, cost, damage, or expense to the
extent of any amount that is, or, if such required insurance was not in effect, that would have
been recoverable, by reason of such insurance and waives any right of subrogation which might
otherwise exist in or accrue to any person on account thereof; provided that such release of
liability and waiver of the right of subrogation shall not be operative in any case where the effect
thereof is to invalidate such insurance coverage or increase the cost thereo£ Each party shall also
be responsible for the payment of any deductible amounts required to be paid under the insurance
referred to in this Section 11.2.
Section 11.3. Adiacent Excavation-Shorine. If an excavation shall be made upon land
adjacent to the Leased Premises, or shall be authorized to be made, Tenant shall permit Landlord
to enter upon the Leased Premises to perform proper shoring.
Section 11.4. Tenant's Authoritv. Tenant hereby covenants, warrants and represents that
it has authority to enter into ihis Lease.
Section I 1.5. Notices. Any notice or demand from Landlord to Tenant or from Tenant to
Landlord shall be in writing and mailed, postage prepaid, by certified mail or by commercial
overnight delivery service for next business day delivery, freight prepaid, or delivered by
personal delivery, addressed, if to Tenant, at the Notice Address of Tenant or such other address
as Tenant shall have last designated by notice in writing to Landlord, and, if to Landlord, to
Tri-Land Developments, Inc., One Westbrook Corporate Center, Suite 520, Westchester, Illinois
60154-5764, or such other address as Landlord shall have last designated by notice in writing to
Tenant. The customary receipt signed or refused by the parry to whom notice is directed shall be
conclusive evidence of such service. Notice shall be deemed given when delivered, if given by
personal delivery, otherwise on the second business day afrer being mailed by certified mail or on
the next business day after being posted with the commercial overnight delivery service, as
applicable.
05392�007071910454.10 22
Section 11.6. Brokera�e. Tenant warrants that it has had no dealings with any broker or
agent in connection with this Lease other than Landlord's broker, and covenants to pay, hold
harmless and indemnify Landlord from and against any and all cost, expense or liability for any
compensation, commissions and charges claimed by any other broker or other agent with respect
to this Lease or the negotiation thereof.
Section ll.7. Votine Control of Tenant. In the event that Tenant is a corporation or
entity other than an individual, any transfer of a majority or controlling interest in Tenant
(whether by stock transfer, merger, operation of law or otherwise) shall be considered an
assignment of this Lease subject to the provisions of Section 8.1.R. hereof.
Section 11.8. Estappel Certificates. Tenant shall, within ten (10) days following request
in writing from Landlord or any existing or prospective modgagee or purchaser of Landlord,
execute, acknowledge and deliver to Landlord a statement in writing certifying: (i) that this Lease
is unmodified and in full force and effect (or if there have been modifications, that the same is in
full force and effect as modified and stating the modifications); (ii) the date of commencement of
the Lease Term; (iii) that Rent is paid currently without any offset or deductio� thereto; (iv) the
dates to which the Fixed Minimum Rent and other charges have been paid, and the amount of
Fixed Minimum Rent and other charges, if any, paid in advance; (v) the amount of any security
deposit, (vi) that Tenant has accepted the Leased Premises and all of Landlord's Work has been
completed, (vii) whether or not there is then existing any claim of Landlord's default hereunder
and, if so, specifying the nature theceof; and (viii) any other matters reasonably requested by
Landlord, or any existing or prospective mortgagee or purchaser of Landlord. Any such
statement may be relied upon by Landlord or any existing or prospective mortgagee or purchaser
of Landlord. If Tenant shall fail to execute and return such statement within the time required
herein, Tenant shall be deemed to have agreed with the matters set forth therein, and Landlord
acting in good faith shall be authorized as TenanYs attorney-in-fact to execute such statement on
behalf of Tenant (which shall not be in limitation of Landlord's other remedies therefor).
Section 11.9. Applicable Law and Construction. The laws of the State of Minnesota
shalf govern the validity, performance and enforcement of this Lease. The invalidity or
unenforceability of any provision of this Lease shall not affect or impair any other provision.
The headings of the several articles contained herein are for convenience only and do not define,
limit or construe the contents of such articles.
Section 11.10. Binding Effect of Lease. The covenants, agreements and obligations
herein contained except as herein otherwise specifically provided, shall extend to, bind and inure
to the benefit of the parties hereto and their respective personal representatives, heirs, successors
and assigns. Landlord, at any time and from time to time, may make an assignment of its interest
in this Lease, and, in the event of such assignment and the assumption by the assignee of the
covenants and agreement to be performed by Landlord herein, Landlord and its successors and
assigns (other than the assignee of this Lease) shal( be released from any and all liability
hereunder. All negotiations, considerations, representations and understandings between
Landlord and Tenant are incorporated herein and this Lease represents the entire agreement
between the parties.
ass9z�ao�o�9 �ocsa. � 0 23
Section 11.11. Landlord and Landlord's Aeents. Wherever in this Lease Landlord is
granted any right, including but not limited to the right to enforce any provision of this Lease or
to exercise any remedies of Landlord, either specifically provided for herein or at law or equity,
such right shall also be exercisable by Landlord's manager, its members or any agent of Landlord
or Landlord's manager or members, in their own name, along or in conjunction with Landlord or
any of the foregoing parties.
Section 11.12. lntentionallv Omitted.
Section ] 1.13. Obiection to Statements. Tenant's failure to object to any statement,
invoice or billing rendered by Landlord within a period of thirty (30) days after receipt thereof
shall constitute Tenant`s acquiescence with respect thereto and shall render such statement,
invoice or billing an account stated between Landlord and Tenant.
Section 1 1.14. Executive Order 13224. Tenant represents and warrants to Landlord that
neithex Tenant, nor any of the entities or individuals owning or controlling Tenant, haue been
designated as a blocked person pursuant to Executive Order 13224. Tenant shall update the
foregoing representation by written notice to Landlord if the foregoing representation should ever
become false during the Term. Any failure to update the foregoing representation shall constitute
a default by Tenant under this Lease and Landlord may immediately (without delivering any prior
notice to Tenant or affording Tenant any opportunity to cure) exercise any and all rights and
remedies permitted in this Lease. Furthermore, if Tenant or any of the entities or individuals
owning or controlling Tenant either now or in the future is designated as a blocked person
pursuant to Executive Order 13224, such circumstance shal( constitute a default by Tenant under
this Lease and Landlord may immediately (without delivering any prior notice to Tenant or
affording Tenant any opportunity to cure) exercise any and all rights and remedies permitted in
this Lease. Tenant shall, within ten (10) days after receipt of written request from Landlord,
certify to Landlard in writing the identiry of all entities and individuals owning or controlling
Tenant.
Section 11.15. Jurt� Waiver. THE PARTIES HERETO SHALL, AND THEY HEREBY
DO, WANE TRIAL BY JURY IN ANY ACTION, PROCEED[NG OR COUNTERCLAIM
BROUGHT BY EITHER OF THE PARTIES HERETO AGAINST THE OTHER ON ANY
MATTERS WHATSOEVER ARISING OUT OF OR IN ANY WAY CONNECTED WITH
THIS LEASE, THE RELATIONSHIP OF LANDLORD AND TENANT, TENANT'S USE OR
OCCUPANCY OF THE LEASED PREMISES AND/OR ANY CLAIM FOR INJURY OR
DAMAGE.
Section 11.16. Exculpation. It is specifically understood and agreed that there shall be
no personal liability of the Landlord, or any member, manager or beneficial owner thereof, in
respect of any of the covenants, conditions and provisions of the Lease; in the event of a breach
or a default by Landlord of any of its obligations under this Lease, as such Lease may be
amended from time to time, Tenant shall look solely to the equity of Landlord in the Shopping
Center for satisfaction of Tenant's remedies.
05392\00707\9Id154.10 24
Section ll.17. Survival. Unless otherwise expressly stated, all of Tenant's obligations
under this Lease shall survive the expiration or earlier termination of the Lease Term, as the same
may be extended from time to time.
Section 11.18. Entitlements. If at any time any part of the Shopping Center is subjaot to
any tax allocation subsidy or any other govemmental subsidy or entitlement ("Entitlement"),
Tenant will provide to Landlord and at such intervals as may be required, all information relating
to sales taxes and other taxes attributable to Tenant's activities at the Shopping Center required to
be provided by or on behalf of Landlord or the Shopping Center in connection with such
Entitlament. Tenant shall deliver such information in such form and substance as Landlord, the
City of Fridley or other governmental authorities shall request. Tenant shall, upon Landlord's
request, provide such infQrmation, or an additional copy thereof, dicectly to such govemmental
authorities as Landlord may request in connection with Landlord's compliance with the terms of
any such Entitlement.
ARTTCLE XII. PARKING SIGNS.
Section 12.1. Tenant's Customer Parkin� Si¢ns. Landlord hereby grants Tenant the right
to install, at Tenant's sole cost and expense, professionally-made signs xeading "Fridley Liquors
Customer Parking Only" ("Tenant's Customer Parking Signs") in front of the parking spaces
designated on Exhibit G(the "Designated Spaces"). Tenant shall be obligated, at Tenant's sole
cost and expense, to clean, maintain in good condition and repair, and replace or remove as
necessary, TenanPs Customer Parking Signs. Landlord and Tenant hereby acknowledge that the
Designated Spaces are in the common areas, are and shall remain under Landlord's exclusive
controL and are not reserved or leased by Tenant. Landlord shall have no responsibility or
obligation to Tenant to police or enforce parking in the Designated Spaces, nor shall Tenant be
permitted to take any action to do so.
ARTiCLE XIII. EXCLUSNITY OF USE.
Section 13.1. Tanant's Exclusive Use. As a material inducement to Tenant to enter into
this Lease, without which inducement Tenant would not have entered into this L,ease, Landlord
agrees that during the L,ease Term, provided that Tenant is continuously operating for the
Permitted Uses in the Leased Premises and has not exercised its option to Go Dark, Landlord
shall not lease any space in the 5hopping Center (or approve any assignment of a lease or
sublease) to another tenant or occupant whose use incVudes the sale of liquor, beer, wine or other
spirits or alcoholic beverages for off=premises co�sumption ("TenanYs Exclusive Use").
Section 13.2. Excentions to Tenant's Exclusive Use. Notwithstanding anything set forth
in this Article XIII to the contrary, Landlord and Tenant acknowledge and agree that:
A. Cub shall have the right to sell, for off-premises consumption, beer that
contains 3.2% (or less) alcohol by weight.
B. The sale of beer or wine for off-premises consumption by tenants or occupants
operating restaurants at the Shopping Center shall not be a violation of TenanYs Exclusive
05392100707U10454.10 25
Use, provided such use is ancillary (comprising 5% or less of the gross revenues of each
such tenant or occupant) to any such tenanYs or occupanYs primary use.
C. The sale for on-premises consumption of liquor, beer, wine or other spirits or
alcoholic beverages for on-premises consumption by other tenants or occupants of the
Shopping Center shall not be a violation of TenanPs Exclusive Use.
Section 13.3. Notice to Other Tenants. During the term of this Lease, Landlord shall
notify all current and future tenants of TenanYs Exclusive Use. Provided that Tenant is
continuously operating for the Permitted Uses in the Leased Premises and has not exercised its
option to Go Dark, Landlord agrees to use commercially reasonable efforts to enforce Tenant's
Exclusive Use against other tenants and occupants of the Shopping Center. In the event a tenant
in the Shopping Center violates Tenant's Exclusive Use, Landlord shall, within five (5) business
days after Landlord receives written notice from Tenant of a violation of TenanYs Exclusive Use,
demand in writing that the offending tenant immediately cease engaging in the Tenant's
Exclusive Use. Landlord shall diligently pursue the prevention of the Exclusive Use violation by
an offending tenant, which diligent pursuit shall include, but not be limited to, filing for
injunctive relief against the offending tenant if the violation of TenanYs Exclusive Usa continues
for a period of thirty (30) days after Landlord delivers written notice to the offending tenant.
ARTICLE XN. LOADING AREA.
Section 141. Loading Area. The loading area for the Leased Premises shall be the area
depicted on Exhibit H, attached hereto and incorporated herein by reference.
[SIGNATURE PAGE FOLLOWS]
os39z�oo-ro��9�oasa.�o 26
IN WiTNES5 WHEREOF, Landlord and Tenant have executed this Lease the day and
year first above written.
TENANT:
LANDLORD:
CITY OF FRIDLEY, a Minnesota municipal ZCOF TL FRIDLEY LLC, a Delaware limited
corporation liability company,
By: _
Name:
Its:
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05392\00707\91045A.10
By: ZCOF TRI-LAND, L.L.C., a Delaware
limited liability company, managing
member
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Exhibit'A'
Leeal Description of Shoppine Genter
Real Pronertv in the City of Fridlev, Counri' of Anoka, Siate of Minnesota, described as fullows:
Parcel 1:
Lot 2, Block 1, Holiday North 2°a Addition, according to the plat on file in the office of the
Registrar of Titles, Anoka County, Minnesota.
Parcel2:
Access easement for the benefit of Parcel 1 as created by and described in Easement and
Restriction Agreement dated October 18, 2QQ6, filed October 23, 2006, as Document No.
489456.005.
Parcel 3:
[ngress and egress easement for the benefit of Parcel 1 as created by and described in Easement
and Maintenance Agreement dated April 29, 1983, filed May 12, 1983, as Document No.
126502.
A-2
OS?92100707\910454.10
EXHIBIT C
DESCRIPTION OF LANDLORD'S WORK
The following work shall be done by the Landlord prior to the Delivery Date, except as otherwise
specified, in accordance with the schedule set forth below.
Construct a temporary enclosare wall separating the Existing Premises from the Leased
Premises and protect the east customer entry area, as shown on Exhibit G2 attached hereto.
2. Construct new demising partition as shown on Exhibit C-3 attached hereto.
3. Construct new north storefront including masonry and glass as shown on Exhibit G4
attached hereto and substantially as shown on the elevation attached hereto as Exhibit C-4-
l.
4. Build out Leased Premises to vanilla box finish, as depicted on the plans attached hereto as
Exhibit GS and made a pad hereof ("Landlo�d's Plans") and/or as provided herein:
a. Gypsum wallboard partitions in sales area of Leased Premises, taped, sanded and
painted.
b. 2'x4' acoustical tile ceiling with lay-in fluorescent light fixtures (1 fixture per 80
square feet of sales floor area) in the sales area and office area at approximately 10'
above the finished floor IeveL Stock area will have exposed fluorescent tube
fixtures mounted to structure.
c. 1/8' nominal vinyl floor tile and baseboards in sales area.
d. HVAC — 350 square feet per ton.
e. 7 watts per square foot to a circuit breaker panel — electrical outlets shall be installed
per Landlord's Plans.
f. Drain lines for refrigerated cases in locations per Landlord's Plans.
g. Male and female restrooms with handicap hardware.
h. Single customer entry vestibule with automatic entry doors going east and north.
i. Overhead delivery door in location shown on Exhibits GS and H.
j. Roof hatch for access to HVAC and other roof-mounted equipment in location to be
determined by Landlord.
k. Curtain wall from ceiling to top of cooler at location of cooler as approximately
sho�cm on Exhibit G5.
1. Office in a size and location to be mutually agreed upon by the parties and
consisting of four (4) walls, one (1) window into the sales area and one (1) door.
lt is the intent of the Landlord and Tenant that, to the extent the description contained herein
conflicts with the depiction of the Leased Premises set forth on E�ibit G5, the descriptions
provided herein in Exhibit C# 4(a) through (l) shall control. Landlord shall perform
Landlord's Work as described in this Exhibit C at its expense and none of the improvements
contained herein shall be subject to or deducted from TenanYs Renovation Allowance as set
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05392V00707V`10454.10
forth in Section 3.3 ofthe Lease.
The following work shall be done by the Landlord following the Delivery Date, except as otherwise
specified, in accordance with the schedule set forth below.
5. Renovate east exterior wall of the Leased Premises as shown on Exhibit C-4-1 attached
hereto.
6. Renovate east parking area as generally shown on Exhibit C-9 attached hereto.
7. Decommission and demolish poRion of Existing Premises not included in the L,eased
Premises as shown on Exhibit G10 attached hereto.
8. Renovate north parking lot as shown on Exhibit C-11 attached hereto.
Landlord shall have the right to run drainage lines, utility lines, pipes, duct work or any other
component parts of all mechanical and electrical systems; where necessary or desirable, as
determined by the Landlord, through attic spaces, column spaces or other pads of the Leased
Premises, and to repair, alter, replace or remove the same, and to require the Tenant to install and
maintain proper access panels thereto.
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EXHIBIT D
DESCRIPTION OF TENANT'S WORK
Al( work required m complete and place the Leased Premises in finished condition for
opening for business, except work to be done by the Landlord described in Exhibit C, is to be
done by the Tenant, at tha Tenant's expense, and in accordanae with this Exhibit, Exhibit E, and
the Lease to which this Exhibit is attached.
I. TENANT'S WORK includes, but is not limited to, the following:
l.l Relocate the portion of TenanYs beer cooler that is located in the Leased Premises
to a portion (as may be designated by Landlord from time to time) of the space designated as
"Available Anchor" on Exhibit D-1 (where Landlord shall store same at Landlord's cost).
Landlord shall give Tenant not less than thirry (30) days prior notice of the date on which Tenant
shall relocate Tenant's cooler and products, whereupon Tenant shall partition Tenant's cooler to
prepare for the partial relocation and shall relocate same. Landlord shall give Tenant not less
than thir[y (30� days' prior notice of the date on which Landlord estimates that the Delivery Date
will occur. Commencing on the date that is twenty-one (21) days prior to the proposed Delivery
Date set forth in Landlord's nQtice, Tenant shall have the right to enter onto the Leased Premises
for the purpose of relocating and instal(ing Tenant's beer cooler from the Available Anchor space
and the Existing Premises to the Leased Premises and installing same. Such entry onto the
I.eased Premises and performance of such work by Tenant prior to the Delivery Date shall be on
all of the terms and conditions of the Lease other than Tenant's obiigation to pay Fixed Minimum
Rent, TenanPs Pro-Rata Share of Operating Costs, real estate taxes and insurance, and utility
charges for the Leased Premises. Tenant shall not be permitted to enter onto the Leased Premises
prior to the delivery to Landlord of all items required in Section 3.2A of this Exhibit D. Tenant
and Tenant's contractors shall work in harmony with Landlord and Landlord's contractors during
such entry by Tenant priar to the Commencement Date, and shall not delay or disrupt the
performance of Landlord's Work.
1.2 Purchasing and installing new equipment and Ptxtures or reinstalling the shelving
in the Existing Premises and other interior fixtures and equipment, including all refrigerated
coolers and cases and remote compressors.
1.3 Relocating or disposing of all trade fixtures and furnishings in the Existing
Premises.
1.4 Relocating all of Tenant's merchandise from the Existing Premises to the Leased
Premises.
1.5 Install storefront display platforms or backgrounds.
1.6 Purchasing and installing new signage consisYent with Tenant's sign plans as
illustrated in Exhibit C-4-1 and as approved by Landlord.
D-1
053921007DT910454.10
1.7 Purchasing and installing any new or relocated interior d8cor package.
1.8 Obtaining all permits and inspections associated with Tenant's Work.
IL CIIANGES & ALTERATIONS
Landlord reserves the right to require changes in Tenant's Work when necessary by
reason of code requirements, or building facility necessity, or directives of governmental
authorities having jurisdiction over the Leased Premises, or directives of Landlord's insurance
underwriters.
III. GENERAL PROVISIONS
All work done by Tenant shall be governed in all respect by, and be subject to, the
following:
3.1 Plans. All work other than that to be performed by Landlord, if any, is to be done
by Tenant, by reputable contractors approved by Landlord, at TenanYs expense and in strict
accordance with the outline description set forth in this Exhibit D, the Sign Criteria set forth in
Exhibit E and the fixture layout to be provided by Tenant which shall be subject to Landlord's
approval. Tenant agrees to submit to Landlord, within fifteen (15) days following receipt of
notice from Landlord that Tenant's Plans are due ("Plan Notice"), plans cQVering Tenant's Woxk
("Tenant's Plans"). Within a reasonable time following Landlord's receipt of TenanY's Plans,
Landlord shall either approve Tenant's Plans as submitted or conditionally approve Tenant's
Plans by noting required revisions thereon ("Landlord's Notes"). Landlord's Notes shall be
incorporated by reference into and be deemed to modify TenanYs Plans as though originally set
forth therein. Tenant's Plans, as revised by Landlord's Notes, shall collectively constitute the
"Approved Tenant Plans." The technical review of Tenant's Plans for the purpose of securing
Landlord's approval shall be performed by Landlord's project azchitect at Landlord's cost. In the
event that Tenant fails to make timely submission of Tenant's Plans or Tenant's Additional Plans
as pcovided in this Lease, then Landlord shall have the right, but not the obligation, to proceed
with Landlord's Work pursuant to plans prepared by or otherwise approved by Landlord.
3.2 Prosecution of Tenant Work.
A. In addition to the requirements set forth in 3.1 above, not less than five (5)
days prior to the date on which Tenant is obligated to commence performance of TenanPs
Work; and before delivery of any materials into the Leased Premises or the Shopping
Center, Tenant shall furnish to Landlord for approval evidence satisfactory to Landlord
that the insurance coverage described in Section 8.IJ of the Lease is in effect the names
and addresses of al] contractors; copies of all contracts, necessary permits and licenses;
certificates of insurance and instrwnents of indemnificafion; and waivers of lien against
any and all costs, claims, expenses, damages and liabilities wbich may arise in connection
with such work, all in such form and amount as is satisfactory to Landlord.
B. Tenant shall, following the Delivery Date, commence Tenant's Work and
thereaier diligently prosecute such work to completio� not later than the Commencement
D5392\D6707�910454_]0 D_Z
Date. Tenant shall not commence any work upon or within the Leased Premises or be
entitled to possession thereof until (a) Landlord has approved Tenant's Plans and (b)
Landlord has received and approved all items described in Section 3.2.A above. TenanYs
failuee to provide all items described in Section 32.A within the time required shall not
excuse Tenant's delay in commencing TenanYs Work. Upon completion of Tenant's
Work, Tenant shall fumish Landlord with contractor s affidavits accompanied by fufl and
final waivers of lien, receipted bills covering all labor and materials expended and used in
connection with such work and copies of all permits which are required to evidence the
proper completion of such work, including a certificate of occupancy evidencing that
Tenant has satisfied all local governmental requirements necessary to conduct Tenant's
business in the Leased Premises. All of Tenant's Work shall be performed in strict
compliance with the Approved Tenant Plans and comply with all insurance requirements
and with all laws, ordinances, rules and regulations of all governmental authorities and all
occupancy permits applicable to the Leased Premises.
33 Landlord agrees to notify Tenant within a reasonable time in advance of the day
when Tenant must commence TenanYs Work and Tenant agrees that Landlord may require
Tenant to commence work, subject to such notice to commence Tenant's Work before Landlord's
Work has been fully completed, provided that the Leased Premises and the building of which the
Leased Premises are a part are completed to the extent that it is practicable for Tenant to
commence TenanYs Wark. TenanYs Work shall be coordinated with the work being done by the
Landlord andlor other tenants of Landlord to such a degree that such �vork �vill not interfere with
or delay the completion of work by Landlord and/or other tenants of Landlord.
3.4 Tenant's Work shall be performed in a first-class workmanlike manner using good
grades of new materials and without interfering with other tenants' operations and shall be in
good and usable condition at the date of completion thereof. The materials to be used by Tenant
for floox and wall coverings, countertops, lighting fixtures and other fixtures and decor items
installed by Tenant shall be new and of good quality. Tenant shall require any party performing
any such work to guarantee the same to be free from any and all defects in workmanship and
materials for one (1) year from the date of completion thereof. Tenant shall also require any such
party to be responsible for the replacement or repair without additional charge of any and all
work done or furnished by or through such party which shall become defective within one (1)
year after substantial completion of the work. The correction of such work shall include, without
charge, all expenses and damages in connection with such removal, replacement, or repair of any
part of the work which may be damaged or disturbed thereby. All warranties or guarantees as to
materials or workmanship on or with respect to Tenant's Work shall be contained in the conVact
or subcontract which shall be so written that such guarantees or warranties shall inure to the
benefit of both Landlord and Tenant, as their respective interests appear, and can be directly
enforced by either. Tenant covenants and agrees to give Landlord any assignment or other
assurances necessary to effect the same.
3.5 Landlord shall have the right (but shall not be obligated) to perform by its own
contractor or subcontractor, on behalf of and for the account of Tenant, any of Tenant's Work
which Landlord determines should be so performed. Generally, such work shall be work which
affects any structural ar roofing components, or work of other tenants of, or the general utility
OS?92�0070T910454.10 D-3
systems for, the building in which the Leased Premises are located. If Landlord so detercnines, it
shall sa notify Tenant prior to the commencement of such work. Tenant shall promptly, on
demand, reimburse Landlord for all costs of planning and performing such work when and as
incurred by Landlord, and for all permits in connection therewith.
3.6 Compliance with Laws: All TenanPs Work shall conform to applicable statutes,
ordinances, regulations, codes and the requirements of Landlord's fire undera�iter. Tenant shall
obtain and convey to Landlord copies of all permits, certifications and appxovals indicating
compliance.
3.7 Approvals: iv�o approvals by Landlord shall be deemed valid unless the same shall
be in writing signed by the Landlord.
05392\0070T910454.10 D-4
EXHIBIT E
SIGN CRITERIA
I. GENERAL
1.1 This exhibit shall govem the design, construction and installation of all signs to be
installed by the Tenant at any time in conjunction with the provisions of the TenanYs Lease. The
Landlord shall make all final and controlling determinations concerning any questions of
interpretation ofthis sign policy.
l.2 It is intended that the signing of stores in Fridley Market shall be designed and
executed in a manner to result in an attractive and coordinated total effect. Lettering shall be well
proportioned, and its design, spacing and legibility shall be a major criterion for approval.
13 Tenant shall be required to identify its premises by erecting signs which shall be
attached respectively directly to the building fascia as described hereinafter. Where the Leased
Premises is a corner store, Tenant may install a fascia sign on each fascia when the parallel fease
frontage exceeds fifreen (15) feet, and Che criteria shall govern each frontage �espectively. In nQ
event shall the preceding sentence be construed to permit the installation of fascia signage on sides
of a building lacking fascia. Landlord hereby approves Tenant's sign rendering attached hereto as
E�ibit C-4-1. The parties agree that TenanPs building signs shall be prepared and installed in the
size and locations shown on E�ibit C-4-1.
1.4 Landlord shall supply and install a uniform identification sign on the Tenant's service
door at the TenanYs expense. Tenant shall not post any additional signs in the service area.
1 S The content of Tenant identification signs shall be limited m the store name and shall
not include crests, shields, logos or names of items for sale.
1.6 All lines of lettering shall run horizontally.
1.7 All lettering shall be upper case or lower case block type letters or combinations
thereof. Script shall not be allowed, except as the Landlord shall otherwise determine.
1.8 Moving, rotating flashing, noise-making or odor-producing signs shall not be
allowed.
1.9 The names, stamps or decals of manufacturers or installers shall not be visible except
fox technical data (if any) required by goveming authorities.
110 Tenant shall not be permitted to open for business without approved required signs in
place. Failure to open for this reason shall not excuse Tenant from the performance of its
obligations under the Lease.
05392V0070T9t0454.10
E-1
II. CRITERIA FOR BUILDING FASCIA S[GNS
2.1 Letters shall be individual and individually mounted to the fascia material with
minimum practical sized, noncorrosive, concealed fastenings, weathersealed at point of fascia
penetration.
2.2 Length of signs shall be limited to 70% of the leased frontage. The assigned position
for each Tenant sign is as illustrated on Exhibit C-4-1, or as otherwise approved by Landlord.
2.3 The principal base of all sign letters shall be aligned on a base line located as
determined by the Landlord for each Tenant sign.
2.4 The maximum height of upper case letters, lower case letters and ascenders and
descenders of lower case letters shall be limited as shown in the following chart.
LEASE FRONTAGE UPPER CASE
Less than 20' 24"
20' to less than 30' 30"
30' to ]es than 50' 36"
50' to less thao 80' 42"
80' and over 48"
LOWER CASE
16"
20"
24"
28"
32"
ASCENDER/
$��
]0"
12"
14"
16"
2.5 Letters shall be of minimum practical depth. Maximum depth shall be 5".
2.6 Letters shall be formed of steel or aluminum back and sides with white porcelain or
baked enamel or anodized aluminum exterior finish. Sides and trim caps (if any) shall be white in
color. Open end of the channel shall be glazed with acrylic plastic facing of color selected by the
Tenant.
2.7 Sign letters shall be self-illuminated. Intemal illumination shall be provided by
neon-t}=pe tubing witb wiring and transforrners concealed behind the fascia construction. Electrical
penetrations of the fascia shall be of minimum practical si2e and number, non-corrosive, concealed
and weathersealed at point of fascia penetration.
2.8 Tenant shall install any blocking behind the canopy fascia that may be necessary to
properly support the individual letters. Minimum blocking shall be installed in a manner that will
not damage the canopy structure of the fascia.
IIL CRITERIA FOR CANOPY SOFFTf SIGNS
3.1 Landlord may establish a design for a standard canopy soffit or "blade" sign with
space for Tenant identification of standard size and color. Letter style shall match TenanYs fascia
sign.
E-2
05392\00707\910454_10
3.2 All canopy soffit or "blade" signs shall be fabricated and installed by a sign company
selected by Landlord. Tenant shall order said signs(s) from and make payment directly to the
Landlord.
33 Signs shall be mounted and located as determined by the Landlocd.
IV. CR[TERIA FOR STOREFRONT SIGNS
4.1 Tenant may install not more than a total of two identification signs on tha daars,
windows or sidewall returns of the storefront. Signs shall be non-illuminated, shall not exceed 2" in
height and letters shall be either painted, or cut from self-adhering vinyl fabric of 1i4" thick wood,
metal or plastic.
4.2 Tenant shall not apply any other signs to the interior or exterior face of the storefront
glass or other material.
V. APPROVAL OF LOCAL GOVERNMENT AUTHORITIES
51 Tenant shall be responsible for complying with the regulations and ordinances
goveming the installation and maintenance of signs with the City of Fridley, Minnesota.
Application for necessary permits and the payment of fees shall be directed to the appropriate City
Department.
VI. PROCEDURE AND SCHEDULE FOK COMPLETION OF SIGN DRAWINGS
6.1 Prior to awarding a contract for fabrication and installation, Tenant shall submit
drawings and specification, in quadruplicate, including samples of materials and colors for all its
proposed building fascia, canopy soffit and storefront sign work. The drawings shall cleaxly show
location of sign and indicate graphics, color, materials, construction and attachment details.
Landlord shall return one (1) set to Tenant with its required modifications andlor approval.
E-3
05392\00707V10454.10
EXHIBIT F
RULES AND REGULATIONS
Tenant covenants and agrees to abide with the following Rules and Regulations for the
Shopping Center:
1. No sign, advedisement, display, notice, or other lettering shall be exhibited,
inscribed, painted or affixed on any part of the outside of the Leased Premises or inside, if visible
from the outside, or outside the building of which they form a part, and no symbol, design, mark,
or insignia adopted by Landlord for the Shopping Center or the tenants therein shall be used in
connection with the conduct of TenanYs business in the Leased Premises or elsewhare without, in
each instance, the prior written consent of Landlord. All such signs, displays, advertisements,
and notices of Tenant so approved by Landlord shall be maintained by Tenant in good and
attractive condition at Tenant's expense and risk_ The distribution of handbills, leaflets or other
printed materials including but not limited to the use of handbills for advertising, shall be
prohibited at the Shopping Center.
2. No awning or other projections shall be attached to the outside walls of the Leased
Premises or the building of which they form a part without, in each instance, the prior written
consent of Landlord.
3. All loading and unloading of goods shall be done only at such times, in the areas
and through the entrances desigttated for such purpose by Landlord.
4. All garbage and refuse shall be kept in the kind of container specified by
Landlord, and prepared for collection in the man�er and at the times and places specified by
Landlord. If Landlord shall provide or designate a service for picking up refuse and garbage,
Tenant shall use same at Tenant's cost, provided such cost shall be competitive to any similar
service available to Tenant. Tenant will not install or cause to be installed any automatic garbage
disposal equipment without the prior written consent of Landlord.
5. No cadio oc television ox other similar device shall be installed. and no aeria] shall
be erected on the roof or exterior walls of the Leased Premises, or on the grounds without, in
each instance, the prior written consent of La�dlord. Any aerial so installed without such written
consent shall be subject to removal without notice at Tenant's expense at any time.
6. No loud speakers, television sets, phonographs, radios or other devices shall be
used in a manner so as to be heard or seen outside of the Leased Premises without the prior
written consent of Landlord.
7. No auction, fire, bankruptcy or selling-out sales shall be conducted on or about the
Leased Premises without the prior written consent of Landlord, which may be withheld in
Landlord's sole and absolute discretion.
8. Tenant shall keep Tenant's display windows i]luminated and the signs and exterior
lights lighted each and every day of the term hereof during the hours designated by Landlord.
F-1
05341\00707\910454.10
9. Tenant shall keep tha Leased Premises at a temperatuxe sufficiently high to
prevent freezing of water in pipes and fixtures.
10. The outside areas immediately adjoining the Leased Premises shall be kept clean
by the Tenant and Tenant shall not place or permit any obstructions or merchandise in such areas
or in the service corridors.
11. Tenant and Tenant's employees shall park their cars only in those portions of the
parking azea designated for employee parking by Landlord, and Tenant shall pay Landlord a
charge of $10 per day for each car of Tenant and TenanYs employees which park on Landlord's
Tract outside the designated area. Tenant shall furnish Landlord the automobile license numbers
assigned to Tenant's cars and the cars of Tenant's employees within five days after taking
possession of ihe Leased Premises and shall thereafter notify the Landlord of any changes within
five days after such changes occur.
12. Tenant shall not make or permit any noise or odor which Landlord deems
objectionable to emanate from the Leased Premises and no person shall use the Leased Premises
as sleeping quarters, sleeping apartments or lodging rooms.
13. Tenant shall obtain all permits and licenses necessary to conduct its business.
14. Tenant shall not operate any coin or token operated vending machine or similar
device for the sale of any goods, wares, merchandise, food, beverages, or services, including but
❑ot limited tq pay telephones, pay lockers, pay toilets, scales, amusement devices and machines
for the sale of beverages, foods, chewing gum, candy, cigarettes or other commodities or any
moving sign or fixture of any kind without the prior written consent of Landlord.
The foregoing covenants and agreements of this Exhibit F shall be referred to as "Rules and
Regulations."
F-2
05392�007071910454.10
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FRIDLEY
AGENDA ITEM
CITY COUNCIL MEETING OF APRIL 9, 2012
INFORMAL STATUS REPORTS
120
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