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Home My WebLink About2014-05-21 PACKET 04.C.� Cottage � Grove � Priae an�P`OSPerify Meet TO: FROM: DATE: RE: Honorable Mayor and City Council Ryan Schroeder, City Administrator Danette M. Parr, Economic Development Director May 16, 2014 Former Hollywood Video Redevelopment— Development Agreement The following agenda item is for the purpose of seeking approval of a Development Agreement between the City of Cottage Grove Economic Development Authority and the KCR Corporation related to the property located at 7180 East Point Doulas Road South. Approval of the Development Agreement will allow for the redevelopment of an existing building to facilitate a location for three future businesses, two of which have been identified as a Chipotle and Noodles & Co. Background The site is a one-story 6,656 square foot commercial structure located in the southeast corner of the subject 1.3-acre site. The former Hollywood Video building was constructed in 1997. There are 47 parking spaces on the site and shared parking with the adjacent commercial development. An aerial photo of the property is shown below: r t _"_' .. . . i� *� . , �, % � ♦ � � ,w T .' s- ; w.A 80t4 fi,TREET � K� �I• • e �bEf r ' � .� r � r. T k� � Me¢hents � � B81FN / •� } � ' R' ' ." i • • •, • ` StBr6uck ,�., . r T�rOO Na ` . �� ti� . ` � r�� hF. \, � � " �r� ♦ A �' L �o"� _ s� P�� G�� ` � C i � � y � o � a / � �J (� Former Hollywood Video Redevelopment May 16, 2014 Page 2 of 2 On December 16, 2013 the Planning Commission held a public hearing regarding a conditional use permit application to remodel the 6,656 square foot commercial building to allow three future tenants, two of which would provide on-sale liquor sales. Ultimately, on January 15, 2014 the City Council approved the proposed remodel plan and conditional use permit. Since the time of the remodel approval and the beginning of the site work, mold was found within the exterior walls of the structure. For that reason, the structure was required to undergo further testing to determine the magnitude of the mold. The testing revealed extensive mold, which could pose health risks. It was found that the structure would need to be removed and rebuilt in order to accommodate future tenants. Discussion In order to accommodate for the unanticipated findings of the mold, the developer is proposing to move forward with the demolition and rebuild of the structure in order to maintain Chipotle and Noodles & Co as ultimate tenants. The proposed building and site will comply with the Code requirements for the Retail Business District (B-2) zoned property. The building elevations and floor plan renderings are attached. The KCR Corporation/property owner has represented that but for receiving financial assistance from the City, the project would not move forward. The Development Agreement is attached. The agreement would provide $50,000 in financial assistance that would be distributed from the EDA Trust Fund and not the General City Fund. As a part of the Development Agreement, the developer will be fully responsible for the ultimate demolition of the current substandard building and the reconstruction of the proposed building. The developer is also responsible for assuring the ultimate opening of the future Chipotle and Noodles & Co restaurants at the subject site. The current taxable market value for the site (includes current building/land) is $838,700, which has been declining in recent years. IYs estimated that with the redevelopment improvements, the future taxable market value will increase to $1,350,000. The current tax revenues for the site include $7,300 for the City and $14,029 for the School District and Washington County. After redevelopment, iYs estimated that the City portion of tax revenues will be $11,750 per year, providing a yearly revenue increase of $4,475 to the City. IYs estimated that the EDA financial assistance would be recouped in approximately 11 years, due to increased tax revenues to the City. The School District and Washington County would also benefit from the increased tax revenues. EDA Action: On May 13, 2014 the Cottage Grove Economic Development Authority unanimously (7-0) recommended approval of the development agreement between the KCR Corporation and the Cottage Grove Economic Development Authority. Recommendation: Staff recommends approval of the development agreement. � � _��,. ; =. c e a � _ _ _ _ _ -_- - � � � �� _ �,� � � � ,. �� I �- � :� � .�� , y � II �.e „ �. .. ... _ . e�.. _ . . .,r. <<_ _, .-�..,a - � ..` .:.' ` m_�--,_,� Level 1 1/8" = 1'-0" CODE REVIEW PROJECT DESCRIPTION New construction of a 6,785 gross sf retail building, divided into three retail tenant spaces and common mech room. Building is one story and fully sprinklered. Existing building foundation to remain is 6,656 gross sf, but gross sf increases to 6,785 sf with newaddition of brick. AUTOMATIC SPRINKLER (Chapter 91 Automatic sprinkler system type : NFPA 13 (903.3.1) OCCUPANCY (Chapter 31 Occupancy Group (Sections 305) M: Mercantile (6,665 GSF) S-2: Storage (120 GSF) GENERAL BUILDING HEIGHTS AND AREAS (Chapter 51 Occupancy Separations (Table 508.3.1) Non-separated uses, M occupancy most restrictive Incidental Use Areas (Table 508.2) Storage Rooms > 100 SF: 1-Hour or Automatic Fire- Extinguishing System CONSTRUCTION TYPE (Chapter 61 Construction Type (602) Type VB Building Element Fire-Resistance Rating Requirement (Table 601) Structural Frame 0 Hours BearingWalls-exterior OHours Bearing Walls- interior O Hours NonbearingWalls-exterior OHours Nonbearing Walls - interior 0 Hours Floor Construction 0 Hours Roof Construction 0 Hours Allowable Height and Building Areas (Table 503) Tabular Modified Allowable Allowable Actual GrOUp Tvpe Area Area Area M VB 9,000 36,000 6,785 Tabular Modified Allowable Allowable Actual GrOUp Tvpe Heiqht Heiqht Heiqht M VB 40'-0" 60'-0" 22'-6" 1 Story 2 Story 2 Story Height Modifications (504) Height Increase (NFPA 13 Sprinkler): 20 feet and 1 story Area Modifications (506) +300% sf (One story sprinklered) EGRESS (Chapter 10) Occupant Load (Table 1004.1.1) Mercantile areas 30 gross SF per occupant 223 total occupants See plan for Occupant Load tabulations. Egress Width (Table 1005.1) All Occupancies with Sprinkler System: Stairways = 0.2"/Occupant Other Components = 0.15"/Occupant See plan for Egress Width required and provided. Stairways (1009) Required clear width: 0-49 occupants = 36" minimum 50+ occupants = 44" minimum Exit Access (1014) Common Path of Egress Travel: Occupancv Distance M 75 feet Exit Access Travel Distance (Table 1016.1) Occupancv Wth Sprinkler Svstem M 250 feet PLUMBING FIXTURES (Chapter 29): Plumbing requirements fulfilled by tenants, see tenant build-out plans. „ y � oaM.o��,. _ . nwr ��«.�nar �• � 9.er �.� a.>�.�� ns�.. �o�ns,� �.,. � � , o , O �SIt2 � 2 M — r� Ae ark yemn9waY�rk "� v, _ U = ti v �� .... ,. , , � O ��am„�a,F d;:'n;°P��,�. Project Team OWNER REP. Venture Pass Partners, LLC. 19620 Waterford Court Shorewood, MN 55331 Contact: Randy Rauwerdink 612.801.4313 rrauwerd i nk@ventu repass. net OWNER KCR Corp. 11115 Excelsior Blvd. Suite 200 Hopkins, MN 55343 Contact: Jon Rappaport 952.931.2470 ARCHITECT DJR Architecture, Inc. 333 Washington Avenue N Union Plaza, Suite 210 Minneapolis, MN 55401 Contact: Scott Nelson 612.676.2714 612.676.2796 (fax) snelson@djr-inc.com CONTRACTOR Fendler Patterson Construction 4839 West 124th Street Savage, MN 55378 Contact: Adam Beesch 952.890.4364 952.890.2916 (fax) abeesch@fend lerpatterson.com STRUCTURAL Voigt and Associates 4635 Nicols Road, Suite 204 Eagan, MN 55122 Contact: AI Malecha 651.686.7727 651.686.8444 (fax) engineering@voigtandassociates.com CIVIL MFRA 14800 28th Ave N. Suite 140 Plymouth, MN 55447 Contact: Mike Brandt 763.259.6014 763.476.8532 (fax) mbrant@mfra.com MECHANICAL & ELECTRICAL Design Build 3 2 1 � � I � � _ . :.�, n ,.. i�. a ,. '• , _ ,.. . . . _ � a ,. �. , .. _ . LIFE SAFETY LEGEND � . � . � � . . � � • • • � � � � � � � � � 1-Hour Fire Barrier 2-Hour Fire Barrier 3-Hour Fire Barrier 3-Hour Fire Wall Smoke Barrier 60 Opening Rating (minutes) 0" / 0" � Exit Width Req'd / Provided _ � Direction of Egress � � Occupant Load ARCHITECTURAL DRAWING INDEX A100 Floor and Roof Plan A200 Exterior Elevations A300 Wall Sedions A301 Wall Sedions A500 Details A600 Schedules Project Notes 1. All work shall comply with all applicable state and localcodes and ordinances. 2. Work is to be completed in accordance with all documents including drawings, specifications and conditions of contrad for work. 3. Refer to complete set of issued contract documents including drawings and specifications of all disciplines for applicable notes, abbreviations and symbols. Contractor is responsible for coordination of work. Notify Archited of any discrepancies before proceeding with work. Site U � r4 zo —�� E �a o W'; N � � � �� N � > � U W �,� o �.� O N 2 � �� N C �(�j�� V r/� } J V J J /"1� Z �� Q Z a 1__' � �o Q � �� ^ W \/ / � Q a � O J W W > � W � O Z` W I ��` I V T o E v N y`� T. �a� !F C � p w ' m " �°, ` o E m w m v `m � - £ —Try n� V v 5 " � _ `m m ' � v o v o �� w � iA L W �A ' i C r m ¢ 5 >.r�a� a o � N o wa..� v � v U N t`o'a�t� �� .� �+ W �I " � �x�� .. �`� � � � � _ � o � � 9�,� � � Q W `° '� O � � . -- C7 �k �_ � � � F- y- O �� U �f W �� Q .'_'-,_.-�- C7 S� 7 � p 0 •� F o Z ^ a 1..1� � � > u a rc � � u � rc � w � 0 � z 0 u Z U M � ' Z o ` � o � N a a 0 T a � � � U C Y a� � 3 � d 0 0 U � � 0 N � � � y y � � `w a _ � � _ ' � vJ o L � �U D ! , � A � � � B I NORTH AND SOUTH WALLS TO BE BALLOON FRAMING. SEESTRUCTURAL. C I I 1 0 � I O �THRUWALLSWPPER ANDDOWNSPOUT 1/4" PER F�OT SLOPED RIGID I INSULATION 1/4" PER FOOT SLOPED RIGID INSULATION — — — — — — — � — — 2 � � I I i d w I I I.� THRUWALLSWPPER ANDDOWNSPOUT SLOPE STRUCTURE 1/4" PER 1'-0" � 4'-0" GAP � BETUVEEN w Q KICKERS FOR w I N� I SWPPER N� I.� wU wU U� Y � Y N Y y � I I I.'� NOKICKERAT ROOFHATCH — — — — � — — — � — 3 I � � 1/4" PER FOOT SLOPED RIGID INSULATION I 1/4" PER FOOT SLOPED RIGID INSULATION I � I � THRU WALLSCUPPER AND DOWNSPOUT 0 0 � 4 NORTH AND SOUTH WALLS TO BE BALLOON FRAMING. SEESTRUCTURAL. ROOF PLAN 1 /ft" = 1'-0" FLOOR PLAN 1 /8" = 1'-0" 4 3 2 � � zo — u N W'3 N U �� C y i =Z O p � N � � ^ ��U Q �� w°�° , L Q� N � w� rt 0 F`� x M1 y N d(D �mn � LLm�m Q U � � �I� Z 5 V.� Q U W d �� o �u �� z �n W �a g ^ O � I.� J � W � W � �w �° � W I �� z 0 U ,a ��a� _ E� �a -- � _° E�°�g z ' a _oa�r� av �, a � � . U III M a z z o � �i N v y 0 a � a x o °� m s m d � � U VIQ ' w � E a .� �� li ct� / ` v � � 0 � p � � V J � � � 0 �� V� � r (6 O ° � ui � Q � 0 � � 0 J � � G \/� � � � i O Q � � � r 3 • o Z � � � 0 /`1 a T O 0 L!� � � LL � 1 1 , VERTICAL COMPOSITE WOOD SIDING OVER TUBE STEEL DOOR FRAMES (2) 5'-6" WIDE x 6'-10" HIGH GATES HINGE BY GATE SUPPLIER a xl �I � I �I II II II �I IIJI _ Leyel_i� 100' - 0" 3" DIAMETER STEEL BOLLARD GROUTED SOLID FOR GATE MOUNTING GATE DETAIL 1 /4" = 1'-0" C i� �� i � i � i � / � / 1I. TRFATED 4x4 POST — AT 6'-0" O.C. MAX POSTS SET IN CONCRETE TO FROST DEPTH 2x4 TRFATED RAILS — BOTTOM, MIDDLE, AND TOP SCREEN FENCE DETAIL 1 /4" = 1'-0" 4 3 4' x 8' SHEETS PLYUVOOD FOI ATTACHMENT c � 1 /8" = 1'-0" 4'x8'S PLYWO ATTACf 1 /8" = 1'-0" AWNING i HIGH PARAPET _ 122' 6" (. LINE OF URFACE .O_WndowFrame .� 110' - 0" EXISITING FOUNDATION TO REMAIN Leveli_ � 100' - 0" T O Footing_ ss - o" a � 1/8" = 1'-0" 1, HIGH PARAPET� ..._. . �221 s�� 1' x 8' SHEETS OF PLYWOOD FOR SIGN 4TTACHMENT _O. Wndow Frame 110' 0" XISITING FOUNDATION O REMAIN Leveli � 100' - 0" T.O. Footin ss� - o° FABRIC AWNIN APPROX. LINE � ROOFSURFA� 1 /8" = 1'-0" IPARAPET � �22� s�� fS OF PLYWOOD TTACHMENT dow Frame _� 110' - 0" G FOUNDATION 41N Leveli � 100' - 0" j.0. Footinq,_� — ss� - o° z PARAPET „� 122 - 6" SHEETS OF PLYWOOD iIGN ATTACHMENT dow Frame .� 110' - 0" iING FOUNDATION =MAIN _ Level 1_ � 100' - 0" T O Footinq .� ss� - o° 1 �� IIII �� . .. ... ... I I I I . . . . T.O. Footing � 96'- 0" B I A CENTER DOORS ON EXISTING DRIVE LANE VERTICAL COMPOSITE WOOD SIDING OVER 2x4 RAILS V ZO — u N W'3 N U �� C y i =Z O p � N � � ^ ��U Q �� w°�° , L Q� N � w� rt 0 F`� x M1 y N d(D �mn � LLm�m Q U � JI� Z li Q W d �� o �u �� 2 �n W � � �a ^ O L�V J W W � �W � � � W I �� oE a °E� �E� 5 a __ � 6 �Qc �3 z p `� a � _oa��r� av � a 5 U � �i rc � rc � z 0 U � U M � Z Z III a � � �i N v o T a � a ° m o °� m s m d � � U �Iv � E d � .� � W � `tid /�'�'� ` v � � 0 � P � � V J � � � O � � � � � O O° O W � � � J T � � � 0 0 � r o Z 0 � a � � C 0 (6 � W O .� N X W � 1 1 — —L----- — —_ ----------------------------------------------------------------J — _ _. _ �-------------------- _ _ _ _ _ =7 .. . L . . .. . . ... .. . . .. .. . . .. .. .. . . . .. .. . .. .. . . I . .. L---------------------------------------------------------------------J �---- --------I ------------------------------ J , � C � � N Wall Section 1 /7" = 1'-0" NOTE: ALL EXISTING FOUNDATIONS AND SLAB TO REMAIN. Wall Section 1 /�" = 1 �_n�� C EIFS over Brick Wall Section 1 /7" = 1'-0" , r ■ A I � � Storefront UVV F'HKHF't I � 120' - 6" FRONT� 116' 4" Level i � 100' - 0" T.O. Footing � 9 0 �� Wall Section @ West 1 /7" = 1'-0" A 4 A � iIGH PARAPET � 122' fi" 3 2"CHANNEL. '�EE STRUCT. FRONT� 116' 4" 2 Leveli � 100' - 0" 1 T.O. Footing � 96'- 0" V zo — u N W'3 N U �� C y i =Z O p � N � � ^ ��U Q �� w°�° , L Q� N � w� rt 0 ,r''� ,,,?e � a�o �mn � LLm�m Q U � � JI� Z 5 �+ Q U W d �� o �u �� z �w � �a g �o � � � W � W � �w �° � W I �� z 0 U oE a °E� E� �a -- � _° E�°�g z ' a _oa�r� av �, a � � - . U III M � Z Z Q � N �i N V o T a � a ° m o °� m s m d � � U �Iv N •� � � � � • _ � � � 0 � p � � V J � � � O � � � � � O O° O W � � � J T � i � 0 0 r o Z � a � N E d � C 0 t� U N � > : ..., �:.. . . . 1 .1 , � T.O. HIGH Pl 122' - 6" — Level 1 10dr_ 0�� T.O. Footing — 96-0 „ — NOTE: ALL EXISTING FOUNDATIONS AND SLAB TO REMAIN. C I Wall Section @ Roof Hatch � n�� _ � �_n�� 3/4" PLYWOOD � ATTACHEMENT. PREFIN. METAL FLASHING .i Wall Section � n�� _ � �_n�� 4 I Side Walls Level 1 100' - 0' Footinc7_ 96 r n i roni cqRAPET 120'-fi" A I Wall Section @ West 1 /�" = 1 �_n�� , r ■ A 4 Pilaster GH PARAPE_T� 122' 6" 3/4" PLYUVOOD @ SIGN ATTACHEMENT.SEEA2 FROM J.B.E. � 116' 4" � PREFIN. METAL FLASHII TYPICAL PILASTER WAL 4" FACE STONE AIR BARRIER 3/4" RIGID INSULATION 3/4" GYP. BD. 6" METAL STUD 5/8" GYP. BD. _ Leyel i_ /� 100' - 0"� T_O. Footinq 96 ,_ o „ Wall Section 1 /�" = 1'_fl" A Pilaster 3 2 1 V zo — u N W'3 N U �� C y i =Z O p � N � � ^ ��U Q �� w°�° , L Q� N � w� rt 0 ,r''� ,,,?e � a�o �mn � LLm�m Q U � � JI� Z 5 �+ Q U W d �� o �u �� z �w � �a g �o � � � W � W � �w � � � W I �� z 0 U oE a �E� E� �a _ � _° E�°�g z � a _oa�� a� �, a � � - . U III M � Z Z Q � N �i N V o T a � a ° m o °� m s m d � � U �Iv d .� � ^ �o� / / li 6 ti$ /�'�'� ` v � � 0 � P � � V J � � � O � � � � � O O° O 0 � � a .� � �� 0 0 r o Z � a � � E a � � 0 � U N � > . ' , � THERMALBRFAK VAPOR BARRIER (SHOWN DASHED) O J / � , ' ef d G � s . a:p•� PREFINISHEC CAP W/ I NOTE: ALL EXISTING FOUNDATIONS AND SLAB TO REMAIN. � EIFS DETAIL 1 1 /2" = 1'-0" lHIGH PARAPET � 127 8" ). LOW PARAPET � 120' - 6" MEMBRANECOUNTER FLASHING WRAP OVER ND TERMINATE EEPER STRIP A TRFATED WOOD BLOCKING PREFINISHED METAL � CAP W/ KEEPER- STRIP Detail @ Low Para 1 1 /7" = 1'-0" I HFADER;SEESTRUCT. FABRICK CANVAS AWNING. FRAME DESIGN BY SUPPLIER PREFINISHED METAL FLASHING FINISH TO MATCH' STOREFRONTSYSTEM (PROVIDE END DAMS) BACKER ROD & SEALANT ALUMINUM STOREFRONT WINDOW SYSTEM � ,., '. T /� . _ . . . 110' 0"V GYP.BD.RETURN,TYP.AT HEADANDJAMB � SEALANT Detail @ Storefront Head 1 1 /2" = 1'-0" SEAL � I II ALUMINUM STOREFRONT DOORASSCHEDULED � ADA COMPLIANT METAL THRESHOLD SET IN A BED OF SEALFWT � � s 1Y K��'�` �S Y..'•, � � 2� c s ��e ,� • a . — — — • 6 _ . Level 1 100' - 0" , r ■ STOREFRONTSYSTEM THERMALLY BROKEN — EXTERIOR CAULK JOINT 1/2" EXPANSION 'p/ Leveli 100' - 0" M ETA MATC COLO WIND MEME MASC WRB STEE 1 1 /2" = 1'-0" 1 1 /2" = 1'-0" 1 1 /2" = 1'-0" .OW PARAPET 120 8" fAL ANGLE Leveli 100' - 0" 4 3 z 1 V zo .y° � N W'3 N U � � � ,m, � �Z o p � N � � ��Ua�� wo�o , L Q� N � w� rt 0 ,r''� ,,,?e � a�o �mn � LLm�m Q U � � JI� Z 5 �+ Q U W d �� O �u �� 2 �n W � �a g �o � � � W � W � �w �° � W I �� U oE a �E� E� �a -- � _° E�°�g z ' a _oa�r� av �, a � � . U I�I M a z z a � � �i N v o T a � a ° m o °� m s m d � � U �Iv d .� �� li 6 ti$ /�'�'� ` v � � 0 f � � V J � � � O ( �� 7 K <, �� V � F O o U Q W � K N Q °� (7 � � O � � r o Z O � a � � E a � .� N 0 � 1 1 , SF-2 STOREFRONT TYPES -ALL STOREFRONT CLEAR ANODIZED ALUMINUM �1'_ R 1/d" 1]'_ S 1/d" SF-1 a a ia, _ o „ SF3 iG1��1 a zi, _ o „ c 17'- 0 1/4" C 8�- 2 �/4�� WALLTYPE-A 5/8" GYP. BD. EACH SIDE 6" METAL STUDS @ i 6" O.Q TO DECK BATT INSULATION A � TYP INT. PARTITION - 6" METAL STUD CONTINUE TO DECK 4 3 2 FRAMETYPES SF-5 SF-6 DOOR TYPES HM1 H.M. EXTERIOR ALL GLAZING 1" INSULAlED DOUBLE GLAZED, U.N.O 0 �� TEMP �� TEMP A1 ANODIZEDALUMINUM STOREFRONT SWINGING �� 0 TEMP 0 B1 ANODIZED ALUMINUM STOREFRONTSWINING SF-4 C1 FLUSH / H.M. INSULATED SF-7 B A DOORSCHEDULE Door Fire F�� # Room Type Width Height Material Finish Rating Hardware Type Material Finish Comments 100A TENANT 1 A1 6'- 0" 7'- 0" ALUM ALUM PANIC HARDWARE 100B TENANT 1 Bi 3'- 0" 7'- 0" ALUM ALUM PANIC HARDWARE 100C TENANT 1 Ci 3'- 6" 7'- 0" HM HM 200A TENANT 2 A1 6'- 0" 7'- 0" ALUM ALUM PANIC HARDWARE 200B TENANT 2 Ci 3'- 6" 7'- 0" HM HM 300A TENANT 3 A1 6'- 0" 7'- 0" ALUM ALUM PANIC HARDWARE 300B TENANT 3 Bi 3'- 0" 6'- 10" ALUM ALUM PANIC HARDWARE 300C TENANT 3 Ci 3'- 6" 7'- 0" HM HM 400 MECH. Ci 3'-0" 7'-0" HM HM 1 V Z o — u N W'3 N U � � � ,m, � �Z o p � N � � ^ ��U Q �� wo�o , L Q� N � w� rt 0 F`� x M1 y N d(D �mn � LLm�m Q U � � JI� Z li Q W d �� o �u �� z �w �� a � o � W W � �w �° � W I �� oE a °E� �E� 5 a °� � _° �� z p _oa�r� av �, a 5 U � G � rc � z 0 U � U M a Z Z III a � � �i N V o T a � a ° m o °� m s m d � � U �Iv � E a d .� � W � `tid `V U� � 0 � P � � V J � � � O � � � � O O° O 0 � � a �� 0 0 r o Z � a � � � � � N L U � .�_•- �:.. .. � 1 .1 CONTRACT FOR PRIVATE DEVELOPMENT By and Between COTTAGE GROVE ECONOMIC DEVELOPMENT AUTHORITY and KCR CORPORATION This document drafted by: KENNEDY & GRAVEN, CHARTERED 470 U.S. Bank Plaza 200 South Siath Street Minneapolis, MN 55402 (612)337-9300 443093v2 RHB CT165-1 TABLE OF CONTENTS PAGE PREAMBLE.......................................................................................................................................... 1 ARTICLE I Definitions Section1.1. Definitions .................................................................................................................... 2 Section1.2. E�ibits ........................................................................................................................3 Section 1.3. Rules of Interpretation ................................................................................................. 3 ARTICLE II Representations and Warranties Section 2.1 Section 2.2 Representations by the Authority ........................... Representations and Warranties bythe Developer 3 3 ARTICLE III Development Property; Public Assistance Section 3.1 Section 3.2 Development Property ........................ Financial Assistance; Qualified Costs 4 4 ARTICLE IV Construction of Minimum Improvements Section 4. L Construction of Minimum Improvements .................................................................... 5 Section 4.2. Certificate of Completion ............................................................................................. 6 ARTICLE V Events of Default Section 5.1. Events of Defauk Defined ............................................................................................ 6 Section 5.2. Remedies on Default .................................................................................................... 7 Section 5.3. No Remedy Exclusive .................................................................................................. 7 Section 5.4. No Additional Waiver Implied by One Waiver ........................................................... 7 ARTICLE VI Additional Provisions Section 6.1. Conflict of Interests; Representatives Not Individually Liable Section 6.2. Equal Employment Opportunity .............................................. Section 6.3. Restrictions on Use ................................................................... Section 6.4. Notices and Demands ............................................................... 7 8 8 8 443093v2 RHB CT165-1 Section6.5. Counterparts .................................................................................................................. 8 Section 6.6. Disclaimer of Relationships ......................................................................................... 8 Section6.7. Amendment .................................................................................................................. 8 Section6.8. Recording ...................................................................................................................... 9 TESTIMONIUM.................................................................................................................................11 SIGNATURES...............................................................................................................................11-12 EXHIBIT A LEGAL DESCRIPTION OF DEVELOPMENT PROPERTY EXHIBIT B FORM OF CERTIFICATE OF COMPLETION EXHIBIT C ASSESSMENT AGREEMENT 443093v2 RHB CT165-1 11 CONTRACT FOR PRIVATE DEVELOPMENT THIS AGREEMENT, made this day of , 2014, by and between the Cottage Grove Economic Development Authority, a public body corporate and politic under the laws of Minnesota, having its principal office at 12800 Ravine Parkway S, Cottage Grove, Minnesota 55016 (the "Authority") and KCR Corporation, a Minnesota corporation, having its principal office at , (the "Developer"). WITNESSETH: WHEREAS, pursuant to Minnesota Statutes, Section 469.091, the Authority may exercise the powers of a Housing and Redevelopment Authority under Minnesota Statutes, Sections 469.001 through 469.047; and WHEREAS, pursuant to Minnesota Statutes, Section 469.012, the Authority has "all the powers necessary or convenient to carry out the purposes of Sections 469.001 to 469.047" including to "clear and redevelop blighted areas" under Minn. Stat. 469.001; and WHEREAS, the Developer is the fee owner of the property legally described on Exhibit A attached hereto (the "Development Property") which it intends to redevelop; and WHEREAS, the Authority is prepared to offer financial assistance in the form of grant to the Developer in order to assist the Developer with the costs of constructing the Minimum Improvements (as hereinafter defined) on the Development Property; and WHEREAS, the Authority believes that construction of the Minimum Improvements on the Development Property pursuant to this Agreement and the fulfillment generally of this Agreement are in the vital and best interests of Cottage Grove and the health, safety, morals, and welfare of its residents, and in accord with the public purposes and provisions of the applicable state and local laws and requirements. NOW, THEREFORE, in consideration of the covenants and the mutual obligations contained herein, the Authority and the Developer hereby covenant and agree with the other as follows: ARTICLE I DeFinitions Section 1.1. Definitions. In this Agreement the following terms shall have the meanings given unless a different meaning clearly appears from the conteat: "AgreemenY' means this Agreement, as the same may be from time to time modified, amended, or supplemented. 443093v2 RHB CT165-1 1 "Assessment AgreemenY' means the agreement, in the form contained in E�ibit C attached hereto, among the Developer, the Authority and the Assessor and entered into pursuant to Section 3.3 of this Agreement, which establishes a Minimum Market Value far the Development Property and the Minimum Improvements. "Assessor" means the assessor for Washington County, Minnesota. "Authority" means the Cottage Grove Economic Development Authority, a public body corporate and politic under the laws of Minnesota. "Certificate of Completion" means the certificate or certificates, in the form contained in Exhibit B attached hereto, which will be provided to the Developer pursuant to Article IV of this Agreement. "City" means the city of Cottage Grove, a municipal corporation under the laws of Minnesota. "County" means Washington County, Minnesota "Development DistricY' means the Authority's Development District No. 1. "Development Property" means the real property which is legally described in Exhibit A attached hereto. "EDA AcY' or "Economic Development Authority AcY' means Minnesota Statutes, sections 469.090 through 469.1081, as amended. "Event of DefaulY' means an action by the Developer or the Authority listed in Article VI ofthis Agreement. "Minimum Improvements" means the construction of an approximately 6,600 square foot commercial building that will be leased to two tenants. After completion of the Minimum Improvements, the term shall mean the Development Property as improved by the Minimum Improvements. "Minimum Market Value" means a market value for real estate tax purposes of at least $1,350,000 with respect to the Development Property and Minimum Improvements as of January 2, 2015 for taxes payable beginning in 2016 and continuing until January 2, 2025 for taxes payable 2026. "Qualified Costs" mean the actual costs, not to exceed $50,000, incurred or otherwise funded by the Developer in connection with the demolition of the existing building and Minimum Improvements on the Development Property. "State" means the state of Minnesota 443093v2 RHB CT165-1 2 "Termination Date" means December 31, 2024. Section 1.2. Exhibits. The following exhibits are attached to and by reference made a part of this Agreement: Exhibit A. Legal description of the Development Property Exhibit B. Form of Certificate of Completion Exhibit C. Assessment Agreement Section 1.3. Rules of Intemretation. (a) This Agreement shall be interpreted in accordance with and governed by the laws of Minnesota. (b) The words "herein" and "hereof' and words of similar import, without reference to any particular section or subdivision, refer to this Agreement as a whole rather than any particular section or subdivision hereof. (c) References herein to any particular section or subdivision hereof are to the section or subdivision of this Agreement as originally executed. (d) Any titles of the several parts, articles and sections of this Agreement are inserted for convenience and reference only and shall be disregarded in construing or interpreting any of its provisions. ARTICLE II Representations and Warranties Section 2.1. Renresentations bv the Authoritv. The Authority makes the following representations as the basis for the undertakings on its part herein contained: (a) The Authority is a public body corparate and politic under the laws of Minnesota The Authority has the power to enter into this Agreement and carry out its obligations hereunder. (b) The persons executing this Agreement and related agreements and documents on behalf of the Authority have the authority to do so and to bind the Authority by their actions. Section 2.2. Renresentations and Warranties bv the Develoner. The Developer makes the following representations as the basis for the undertakings on its part herein contained: (a) The Developer is a Minnesota corporation duly organized and in good standing under the laws of Minnesota. The Developer is not in violation of any provisions of its organizational documents. The Developer has the power to enter into this Agreement and carry out its obligations hereunder. The persons executing this Agreement and related agreements and documents on behalf of the Developer have the authority to do so and to bind the Developer by their actions. 443093v2 RHB CT165-1 3 (b) Neither the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and conditions of this Agreement is prevented, limited by or conflicts with or results in a breach of, the terms, conditions or provisions or any restriction or any evidence of indebtedness, agreement or instrument of whatever nature to which the Developer is now a party or by which it is bound, or constitutes a default under any of the foregoing. ARTICLE III Development Propertv: Public Assistance Section 3.1. Develonment Pronertv. The Developer is the fee owner of the Development Property. The Authority agrees to provide the financial assistance in the amount of $50,000 ("GranY� outlined in this Agreement to the Developer but makes no representations to the Developer regarding the suitability of the Development Property or the Minimum Improvements for the use and purpose intended by the Developer. Section 3.2. Financial Assistance: Qualified Costs. (a) The existing building on the Development Property contains mold damage and significant interior deterioration requiring the demolition of the building. In recognition of the cost to the Developer to demolish the existing building and complete the Minimum Improvements, the Authority agrees to pay the Developer the Grant towards Qualified Costs. The Authority will use general development account funds of the Authority to reimburse pay the Grant to the Developer for the Qualified Costs. The Authority agrees to make payment to the Developer after receipt of the same type of information and documentation required under sections 3.2(b) and 3.2(c) of this Agreement. The Developer represents and warrants that it would not undertake the project without the financial assistance offered by the Authority under this Agreement. (b) Notwithstanding anything herein to the contrary, the Authority shall have no obligation to offer financial assistance to the Developer for any Qualified Costs until and unless the following conditions precedent have been satisfied: (1) A Certificate of Completion has been issued by the Authority; (2) There has been no Event of Default under this Agreement on the part of the Developer; (3) The Developer has provided the Qualified Costs documentation required under Section 3.2(c); and (4) The Developer has executed the Assessment Agreement in the form attached hereto as Exhibit C. (c) Prior to the Authority being obligated to make any payments under this Agreement, the Developer shall provide the Authority with a final lien waiver from the 443093v2 RHB CT165-1 4 Developer's construction contractor in connection with the wark on the Minimum Improvements. In addition, all fees, charges or other bills owed to the City with respect to the Development Property must be paid priar to the Authority being obligated to make payments under this Agreement. Notwithstanding the foregoing, the cost of negotiation and preparation of this Agreement and the Assessment Agreement shall be the Authority's cost and shall not be netted or applied against the Grant. (d) Notwithstanding anything herein to the contrary, the Authority shall have no obligation to reimburse the Developer for any Qualifying Costs associated with the Minimum Improvements which are completed after December 31, 2015. Section 3.3. Assessment Aereement. (a) Upon satisfaction of the conditions in Section 3(b)(1) through (3) and as the last condition precedent to funding the Grant and upon funding the Grant, the Developer and the Authority agree to execute an Assessment Agreement specifying the Minimum Market Value for the Development Property together with the Minimum Improvements. The amount of the Minimum Market Value shall be no less than $1,350,000 as of January 2, 2015 for taxes payable beginning in 2016 and continuing until January 2, 2024 for taxes payable 2025. (b) The Assessment Agreement shall be substantially in the form attached hereto as E�ibit C. Nothing in the Assessment Agreement shall limit the discretion of the Assessor to assign a market value to the Development Property and Minimum Improvements in excess of such Assessor's Minimum Market Value nor prohibit the Developer from seeking through the exercise of legal or administrative remedies a reduction in such market value for property tax purposes; provided, however, that the Developer shall not seek a reduction of such market value below the Assessor's Minimum Market Value set forth in the Assessment Agreement in any year so long as such Assessment Agreement shall remain in effect. The Assessment Agreement shall remain in effect until the Termination Date; provided that if at any time before the Termination Date the Assessment Agreement is found to be terminated or unenforceable by any Tax Official or court of competent jurisdiction, the Minimum Market Value described in this Section 3.3 shall remain an obligation of the Developer or its successors and assigns (whether or not such value is binding on the Assessor), it being the intent of the parties that the obligation of the Developer to maintain, and not seek reduction of, the Minimum Market Value specified in this Section 3.3 is an obligation under this Agreement as well as under the Assessment Agreement, and is enforceable by the Authority against the Developer, its successors and assigns in accordance with the terms of this Agreement. ARTICLE IV Construction of A�Iinimum Improvements Section 4.1. Construction of Minimum Imnrovements. The Developer agrees that it will complete the Minimum Improvements provided that the Chipotle Mexican Grill and Noodles and Company leases remain in full force and effect. The Developer recognizes that it is because the Developer has agreed to construct the Minimum Improvements on the Development Property 443093v2 RHB CT165-1 5 that the Authority is willing to offer the assistance outlined in this Agreement. The Developer acknowledges that, in addition to the requirements of this Agreement, construction of the Minimum Improvements on the Development Property will necessitate compliance with other reviews and approvals by the Authority, the City and possibly other governmental agencies and agrees to submit all applications for and pursue to their conclusion all other approvals needed prior to constructing the Minimum Improvements on the Development Property. Section 4.2. Certificate of Completion. After substantial completion of the Minimum Improvements, and after Chipotle Mexican Grill and Noodles and Company have each entered into a lease with the Developer to occupy a portion of the Minimum Improvements and both have commenced business at the Development Property, the Authority will furnish the Developer with a Certificate of Completion in the form of Exhibit B attached hereto. Such certification by the Authority shall be a conclusive determination of satisfaction and termination of the agreements and covenants in this Agreement with respect to completion of the Minimum Improvements on the Development Property. The Certificate of Completion with respect to the Development Property shall only be issued after issuance of a certificate of Completion by the City with respect to the Minimum Improvements. The Certificate of Completion provided for in this section 4.3 shall be in such form as will enable it to be recorded in the proper County office for the recordation of deeds and other instruments pertaining to the Development Property. ARTICLE V Events of Default Section 5.1. Events of Default Defined. Each and every one of the following shall be an Event of Default under this Agreement: (a) Failure by the Developer to satisfy all the conditions precedent specified in section 3.2(b) of this Agreement; (b) Failure of the Developer to commence and complete construction of the Minimum Improvements on the Development Property pursuant to the terms, conditions and limitations of Article IV of this Agreement, specifically including but not limited to the timing thereof; (c) Failure by the Developer to pay real estate taxes or special assessments on the Development Property and Minimum Improvements as they become due; (e) If the Developer shall file a petition in bankruptcy, or shall make an assignment for the benefit of its creditors or shall consent to the appointment of a receiver and such petition, assignment or appointment is not dismissed within 90 days; or 443093v2 RHB CT165-1 6 (� Failure by either party to observe or perform any material covenant, condition, obligation or agreement on its part to be observed or performed under this Agreement or the Assessment Agreement for the Development Property. Section 5.2. Remedies on Default. Whenever any Event of Default referred to in Section 5.1 of this Agreement occurs, the non-defaulting party may take any one or more of the following actions after providing 30 days' written notice to the defaulting party of the Event of Default, but only if the Event of Default has not been cured within said 30 days or, if the Event of Default is by its nature incurable within 30 days, the defaulting party does not provide assurances to the non-defaulting party reasonably satisfactory to the non-defaulting party that the Event of Default will be cured and will be cured as soon as reasonably possible: Authority Remedies: (a) Suspend its performance under this Agreement until it receives assurances from the defaulting party, deemed adequate by the non-defaulting party, that the defaulting party will cure such default and continue its performance under this Agreement; (b) Terminate or rescind this Agreement; (c) If the default occurs prior to completion of an element of the Minimum Improvements on the Development Property, the Authority may withhold the Grant; and Developer Remedies: (d) Take whatever action, including legal or administrative action, which may appear necessary or desirable to the non-defaulting party to collect any payments due under this Agreement, or to enforce performance and observance of any obligation, agreement, or covenant of the defaulting party under this Agreement. Section 5.3. No Remedv Exclusive. No remedy herein conferred upon or reserved to the parties is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any Event of Default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. In order to entitle the Authority or the Developer to exercise any remedy reserved to it, it shall not be necessary to give notice, other than such notice as may be required in Article VI of this Agreement. Section 5.4. No Additional Waiver Imnlied bv One Waiver. In the event any covenant or agreement contained in this Agreement should be breached by either party and thereafter waived by the other party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other concurrent, previous or subsequent breach hereunder. ARTICLE VI Additional Provisions 443093v2 RHB CT165-1 7 Section 6.1. Conflict of Interests: Renresentatives Not Individuallv Liable. No officer, official, or employee of the Authority shall have any personal financial interest, direct or indirect, in this Agreement, nor shall any such officer, official, or employee participate in any decision relating to this Agreement which affects his or her personal financial interests, directly or indirectly. No officer, official, or employee of the Authority shall be personally liable to the Developer, or any successor in interest, in the event of any Event of Default or breach or for any amount which may become due or on any obligation under the terms of this Agreement. No officer, official or employee of the Developer or its successors or assigns shall be personally liable to the Authority or the City or any successor in interest in the event of any Event of Default or breach or for any amount which may become due or on any obligation under the terms ofthis Agreement. Section 6.2. Equal Emnlovment Onnortunitv. The Developer, for itself and its successors and assigns, agrees that during the construction of the Minimum Improvements on the Development Property provided for in this Agreement, it will comply with all applicable equal employment and nondiscrimination laws and regulations, to the eatent it has contracted for the Minimum Improvements. Section 6.3. Restrictions on Use. The Developer, for itself and its successors and assigns, agrees to devote the Development Property only to such land use or uses as are allowed under the land use regulations of the City. Section 6.4. Notices and Demands. Except as otherwise expressly provided in this Agreement, any notice, demand, or other communication under this Agreement or any related document by either party to the other shall be sufficiently given or delivered two business days after it is dispatched by registered or certified United States mail, postage prepaid, return receipt requested, or upon receipt if delivered personally to: (a) in the case of the Authority: 12800 Ravine Parkway Cottage Grove MN 55016 Attn: EDA Executive Director ro� in the case of the Developer: KCR Corporation 11115 Excelsior Blvd Hopkins, MN 55343 ar at such other address with respect to any such party as that party may, from time to time, designate in writing and forward to the other as provided in this Section 6.4. Section 6.5. Countemarts. This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same instrument. Section 6.6. Disclaimer of Relationshins. The Developer and the Authority acknowledge that nothing contained in this Agreement nor any act by the Developer or the Authority shall be deemed or construed by the Developer ar the Authority or by any third person to create any 443093v2 RHB CT165-1 g relationship of third-party beneficiary, principal and agent, limited or general partner, or joint venture between the Developer and the Authority. Section 6.7. Amendment. This Agreement may be amended only by the written agreement of the parties. Section 6.8. Recording. The Authority may record this Agreement and any amendments thereto with the Washington County recorder. The Developer shall pay all costs for recording. 443093v2 RHB CT165-1 9 IN WITNESS WHEREOF, the Authority and the Developer have caused this Agreement to be duly executed in their names and behalves on or as of the date first above written. COTTAGE GROVE ECONOMIC DEVELOPMENT AUTHORITY By: Its President By: Its Executive Director STATE OF MINNESOTA ) ) SS COUNTY OF ) The foregoing instrument as acknowledged before me this day of , 2014, by and , president and executive director, respectively, of the Cottage Grove Economic Development Authority, a public body corparate and politic under the laws of Minnesota, on behalf of the Economic Development Authority. Notary Public 443093v2 RHB CT165-1 S-1 KCR CORPORATION, A MINNESOTA CORPORATION : Its: STATE OF COUNTY OF ) ss The foregoing instrument was executed this of day , 2014, by , the of KCR Corparation, a Minnesota corparation on behalf of the company. Notary Public 443093v2 RHB CT165-1 S-2 EXHIBIT A LEGAL DESCRIPTION OF DEVELOPMENT PROPERTY The Development Property is located in Washington County, Minnesota and is legally described as follows: Lot 3, Block 1, Grove Plaza Addition Parcel ID No: 17.027.21.21.0041 443093v2 RHB CT165-1 f�-1 EXHIBIT B FORM OF CERTIFICATE OF COMPLETION WHEREAS, the Cottage Grove Economic Development Authority, a public body corporate and politic under the laws of Minnesota (the "Authority"), and KCR Corporation, a Minnesota corporation (the "Developer"), have entered into a certain Contract for Private Development (the "ContracY') dated the day of , 2014, and recorded in the office ofthe County Recorder in Washington County, Minnesota, as Document No. which Contract contained certain covenants and restrictions regarding completion of the Minimum Improvements, as defined in the Contract; and WHEREAS, the Developer has performed said covenants and conditions in a manner deemed sufficient by the Authority to permit the execution and recording of this certification. NOW, THEREFORE, this is to certify that all construction of the Minimum Improvements specified to be done and made by the Developer has been completed and the covenants and conditions in the Contract have been performed by the Developer, and the County Recorder in Washington County, Minnesota, is hereby authorized to accept for recording and to record the filing of this instrument, to be a conclusive determination of the satisfactory termination of the covenants and conditions relating to completion of the Minimum Improvements. Dated: COTTAGE GROVE ECONOMIC DEVELOPMENT AUTHORITY By: Its: President By: Its: Executive Director STATE OF MINNESOTA ) ) ss. COUNTY OF ) The foregoing instrument as acknowledged before me this day of , 20 , by and , the president and executive director, respectively, of the Cottage Grove Economic Development Authority, a public body corporate and politic, under the laws of Minnesota, on behalf of the Economic Development Authority. Notary Public 443093v2 RHB CT165-1 B-1 EXHIBIT C ASSESSMENT AGREEMENT THIS ASSESSMENT AGREEMENT, dated as of this day of , 2014, by and between the Cottage Grove Economic Development Authority, a public body corporate and politic under the laws of Minnesota (the "Authority") and KCR Corporation, a Minnesota corporation (the "Developer'�. WITNESSETH: WHEREAS, on , 2014 the Authority and the Developer, entered into an Amended and Restated Contract for Private Development (the "Development AgreemenY') pursuant to which the Developer agreed to construct certain improvements (the "Minimum Improvements") on the land legally described in Exhibit A attached hereto (the "Property"); and WHEREAS, pursuant to the Development Agreement, the Authority and Developer desire to establish a minimum market value for the Property and the Minimum Improvements to be constructed thereon; and WHEREAS, the Authority and the Assessor for Washington County, Minnesota have reviewed the plans and specifications for the Minimum Improvements which the Developer has agreed to construct or cause to be constructed on the Property pursuant to the Development Agreement. NOW, THEREFORE, the parties to this Assessment Agreement, in consideration of the promises, covenants and agreements made herein and in the Development Agreement by each to the other, do hereby agree as follows: 1. The Minimum Market Value far the Property and the Minimum Improvements shall be $1,350,000 as of January 2, 2015 for taxes payable in 2016, and as of each January 2 thereafter until and including January 2, 2024 for taxes payable 2025. 2. This Assessment Agreement shall be promptly recorded by the Developer. The Developer shall pay all costs of recording this Assessment Agreement. 3. Neither the preambles nor the provisions of this Assessment Agreement are intended to, nor shall they be construed as, modifying the terms of the Development Agreement. Unless the conteat indicates clearly to the contrary, the terms used in this Assessment Agreement shall have the same meaning as the terms used in the Development Agreement. 443093v2 RHB CT165-1 4. This Assessment Agreement shall inure to the benefit of and be binding upon the successors and assigns ofthe parties. 5. Each of the parties warrants and represents that it has authority to enter into this Assessment Agreement and to take all actions required of it and has taken all actions necessary to authorize the execution and delivery of this Assessment Agreement. 6. In the event that any provision of this Assessment Agreement is held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof. 7. The parties hereto agree that they will, from time to time, execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered, such supplements, amendments and modifications hereto, and such further instruments as may reasonably be required for correcting any inadequate, or incorrect, or amended description of the Property, or for carrying out the expressed intention of this Assessment Agreement. 8. Except as provided in Section 7 hereof, this Assessment Agreement may not be amended nor any of its terms modified except by a writing authorized and executed by all parties hereto. 9. This Assessment Agreement may be simultaneously executed in several counterparts, each of which shall be an original and all of which shall constitute one and the same instrument. 10. This Assessment Agreement shall be governed by and construed in accordance with the laws of Minnesota. + + + + + + 443093v2 RHB CT165-1 COTTAGE GROVE ECONOMIC DEVELOPMENT AUTHORITY By Its President By Its Executive Director STATE OF MINNESOTA ) ) SS COUNTY OF WASHINGTON ) The foregoing instrument as acknowledged before me this day of , 2014, by and , president and executive director, respectively, of the Cottage Grove Economic Development Authority, a public body corporate and politic under the laws of Minnesota, on behalf of the Economic Development Authority. Notary Public 443093v2 RHB CT165-1 KCR CORPORATION : STATE OF MINNESOTA ) ) ss COUNTY OF 1 The foregoing instrument was executed this day of , 2014, by , the of KCR Corporation, a Minnesota corporation, on behalf of the company. Notary Public 443093v2 RHB CT165-1 CERTIFICATION BY ASSESSOR The undersigned, having reviewed the plans and specifications for the improvements to be constructed and the market value assigned to the land upon which the improvements are to be constructed, and being of the opinion that the minimum market value contained in the foregoing Assessment Agreement appears reasonable, hereby certifies as follows: The undersigned Assessor, being legally responsible for the assessment of the described property as Washington County Assessor, hereby certifies that the market value assigned to such land and improvements on January 2, 2015, for taxes payable in 2016, shall be not less than $1,350,000 until termination ofthis Agreement. Assessor for Washington County, Minnesota STATE OF MINNESOTA ) ) ss COUNTY OF WASHINGTON ) The foregoing instrument was acknowledged before me this day of , 2014 by , the Assessor for Washington County, Minnesota. Notary Public 443093v2 RHB CT165-1 EXHIBIT A to Assessment Agreement LEGAL DESCRIPTION The Development Property is located in Washington County, Minnesota and is legally described as follows: Lot 3, Block 1, Grove Plaza Addition Parcel ID No: 17.027.21.21.0041 443093v2 RHB CT165-1