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2000.08.08 PACKET
f CITY OF COTTAGE GROVE ECONOMIC Secretary DEVELOPMENT AUTHORITY AGENDA TUESDAY, AUGUST 8, 2000 7:30 A.M. 1. Call to Order 2. Roll Call 3. Approval of July 11, 2000 Minutes 4. Business Items A. TIF 1-11 Review of Program and Plan B. Cushman-Wakefield Business Subsidy Public Hearing C. Project Updates D. By-Laws E. Budget Discussion F. Phase I G. Annual Report H. Golf Tournament I. Planning Review: 5th Street Ventures J. Aerial Photo Update K. Industrial Park Concept Planning L. Calendar M. Marketing Update 5. Miscellaneous Business Items 6. Adjourn Next Meeting Date: September 12,2000 • K:\Economic Development\EDA Packets\2000\Agendas\August.doc City of Cottage Grove • Memo To: Economic Development Authority Members �,( � From: Michelle A. Wolfe, Assistant CityAdministrator M'� "" ) 1'� Date: 08/04/00 Re: Review Program and Plan for TIF District 1-11 and Approval of Resolution Adopting TIF District 1-11 Item 4A Attached are the following documents for your review: • (1 Overview of TIF District 1-11 (2 EDA Resolution approving TIF District 1-11 (3 Draft Program and Plan for TIF District 1-11 Please review these documents and provide feedback. If the plans for the district meet with your approval, please make a motion to adopt the attached resolution. Any comments as well as the Resolution will be forwarded to the City Council. The Public Hearing will take place on August 16, 2000. Attachments 1111 F:\GROUPS\PER_ECON\Economic Development\EDA Memos\2000\August 00 Pub Hear Cush.doc AUG. 4. 2000 10 : 14AM EHLERS & ASSOCIATES 1O. 1465 P. 2/14 iL. `, \',, • Ehlers and Associates Tax Incre0 ment Financing District Overview City of Cottage Grove - Tax Increment Financing District No. 1 -11 Proposed action: The establishment of Tax Increment Financing District No. 1-11. Project Area Action: Modification to the Development District No. 1 to incorporate TIF District No. 1-11 Type of TIF District: A Redevelopment District Parcel Numbers! 17-027-21-32-0001; 17-027-21-43-0001 and 20-027-21-11-0001 Location: See the attached map Proposed development: To facilitate redevelopment of an under utilized railroad right of way in the City of Cottage Grove. Estimated annual tax $2,240,731 increment: • Maximum duration: The duration of the District will be 25 years from the date of receipt of the first increment by the EDA or City(a total of 26 years). The date of receipt by the City of the first tax increment is expected to be 2002. Thus, it is estimated that the District, including any modifications of the Plan for subsequent phases or other changes, would terminate after 2027, Project Costs: See attached sources and uses of funds. Form of financing: As presently proposed,the project will be financed by a combination of a bond issue, pay-as-you-go notes and interfund loans and transfers from other City or EDA funds. Administrative fee: Up to 10% of annual increment, if costs arc justified. LGA/HACA penalty: The City elects to make the annual local contribution to the project to exempt itself from the LGA-HACA penalty. Contribution for a redevelopment district is 5% of annual tax increment. The contribution is expected to be covered by a state grant for contamination remediation. Fiscal Disparities The City and EDA choose to calculate fiscal disparities by clause a(outside the Election TIF District). 0 AUG. 4 200 10 15AM E-IERS & ASSOCIATES NO1465 P. 3/14 • TIF District Overview 3 Year Activity Rule At least one of the following activities must take place in the District within 3 years (§469.176 Subd. la) from the date of certification: o bonds have been issued o the authority has acquired property within the district O the authority has constructed or caused to be constructed public improvements within the district The estimated date whereby this activity must take place is August, 2003. 4 Year Activity Rule If after four years from the date of certification of the District one of the following (§469.176 Subd 6) activities must have been commenced on each parcel in the District: 0 demolition ❑ rehabilitation o renovation o other site preparation(not including utility services such as sewer and water) If the activity has not been started by the approximately August,2004, no additional tax increment may be taken from that parcel until the commencement of a qualifying • activity. 5 Year Rule Within 5 years of certification revenues derived from tax increments must be (§469.1763 Subd 3) expended or obligated to be expended. Tax increments are considered to have been expended on an activity within the District if one of the following occurs: ❑ the revenues are actually paid to a third party with respect to the activity o bonds,the proceeds of which must be used to finance the activity, are issued and • sold to a third party,the revenues are spent to repay the bonds,and the proceeds of the bonds either are reasonably expected to be spent before the end of the later of(i) the five year period, or (ii) a reasonable temporary period within the meaning of the use of that term under §. 148(c)(1)of the Internal Revenue Code, or are deposited in a reasonably required reserve or replacement fund ❑ binding contracts with a third party are entered into for performance of the activity and the revenues are spent under the contractual obligation ❑ costs with respect to the activity are paid and the revenues are spent to reimburse a pay for payment of the costs, including interest on unreimbursed costs. Any obligations in the Tax Increment District made after approximately August, 2005,will not be eligible for repayment from tax increments. Page 2 AUG. 4, 2000 14 : 15AM EHLERS & ASSOCIATES NO. 1465 P. 4/14 TIP District Overview • The reasons and facts supporting the findings for the adoption of the Tax.Increment Financing Plan for Tax Increment Financing District No. 1-11, as required pursuant to Minnesota Statutes, Section 469175, Subdivision 3 are as follows: 1. Finding that Tax Increment Financing District No. 1-11 is a redevelopment district as defined in M.S., Section 469.174, Subd. 10(a)(2). The District consists of 3 parcels,with plans to redevelop the area for industrial purposes. The property consists of vacant, unused, underused, inappropriately used, or infrequently used railyards, rail storage facilities or excessive or vacated railroad rights-of-way. The existing substandard buildings and non-conforming use of the property is having a negative impact on the aesthetics of the area and is inhibiting the ability to further develop the industrial park (See Appendix F of the TIF plan). • 2. Finding that the proposed development, in the opinion of the City Council, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would he less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of Tax Increment Financing District No. 1-11 permitted by the Plan. The proposed development, in the opinion of the City,would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future: This finding is supported by the fact that the redevelopment proposed in this plan meets the City's objectives for redevelopment. Due to the high cost of redevelopment on the parcels currently occupied by railroads,railyards ands ubstandard buildings,the limited • amount of industrial property for expansion adjacent to the existing project,the incompatible land uses at close proximity,and the cost of financing the proposed improvements,this project is feasible only through assistance, in part, from tax increment financing. Tax Increment will be used, in part, to assist the initial developer who is currently considering locating in either Cottage Grove,Minnesota and Menomonie, Wisconsin. The increased market value of the site that could reasonable be expected to occur without the use of tax increment financing would be less than the increase in market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the 7IF District permitted by the Plan: The City supported this finding on the grounds that the cost of land acquisition, site improvements and preparation, public utilities, and streets and sidewalks add to the total redevelopment cost. Site and public improvements costs in this area have made redevelopment infeasible without tax increment assistance. Therefore, the City reasonably determines that no other redevelopment of similar scope is anticipated on this site without substantially similar assistance being provided to the development. A comparative analysis of estimated market values both with and without establishment of the District and the use of tax increments has been performed as described above. If all development which is proposed to be assisted with tax increment were to occur in the District, the total increase in market value would be up to $54,597,100. The present value of tax increments from the District is estimated to be$18,933,465. It is the Council's finding that no development with a market value of greater than $35,663,635 would occur without tax increment assistance in this district within 25 years. This finding is based upon evidence from general past experience with the high cost of land acquisition,site improvements and preparation,public utilities,and streets and sidewalks in the general area of the District(see Cashflow in Appendix 0 of the TIF Plan). 3. Finding that the Tax Increment Financing Plan for Tax Increment Financing District No. 1-11 conforms to the general plan for the development or redevelopment of the municipality as a whole. • Page 3 AUG. 4, 2000 10 : 15AM EHLH S & ASSOCIATES NO. 1465 P. 5/14 • TIFDistrict Overview The Planning Commission reviewed the Plan and found that the Plan conforms to the general development plan of the City. 4. Finding that the Tax Increment Financing Plan for Tax Increment Financing District No. 1-11 will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development or redevelopment of Development District No. 1 by private enterprise. The project to be assisted by the District will result in increased employment in the City and the State of Minnesota, the renovation of substandard properties, increased tax base of the State and add a high quality development to the City. • • Page 4 AUG. 4 200 10 . I5AM EHLERS & ASSOCIATES NO. 1465 H 6/14 TIP District Overview 4111 SOURCES AND USES SOURCES OF FUNDS TOTAL Tax Increment $54,800,191 Interest $10,000 PROJECT REVENUES $54,810,191 lnterfund Loans/Transfers $54,800,191 Bond Proceeds $55,000,000 TOTAL PROJECT AND FINANCING REVENUES $164,610,382 USES OF FUNDS TOTAL Land/Building Acquisition $3,600,000 Site Improvements/Preparation $12,300,000 Public Utilities $13,000,000 Parking Facilities $0 Streets and Sidewalks $4,000,000 Interest Other Public Improvements $0 Administrative Costs(up to 10%) $5,480,019 PROJECT COSTS TOTAL $38,380,019 Interfund Loans/Transfers $54,800,191 Bond Interest $9,030,172 Bond Principal $55,000,000 Loan Interest $9,000,000 TOTAL FINANCING AND PROJECT COSTS $166,210,382 • Page 5 Michelle Wolfe - EDA res.doc Page 1 • COTTAGE GROVE ECONOMIC DEVELOPMENT AUTHORITY CITY OF COTTAGE GROVE WASHINGTON COUNTY STATE OF MINNESOTA RESOLUTION NO. RESOLUTION ADOPTING THE MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1 AND ESTABLISHING TAX INCREMENT FINANCING DISTRICT NO. 1-11 THEREIN AND ADOPTING THE TAX INCREMENT FINANCING PLAN THEREFOR. WHEREAS, it has been proposed by the Cottage Grove Economic Development Authority (the "EDA") Board of Commissioners (the "Board") and by the City of Cottage Grove (the "City") that the EDA adopt the Modification to the Development Program for Development District No. 1 and establish Tax Increment Financing District No. 1-11 therein and adopt the Tax Increment Financing Plan therefor, (collectively, the "Program and Plan"), all pursuant to and in conformity with applicable law, including Minnesota Statutes, 469.090 through 469.1081, and Sections 469.174 to 469.179, inclusive, as amended (the "Act"),all as reflected in the Program and Plan and presented for the Board's consideration;and WHEREAS,the EDA has investigated the facts relating to the Program and Plan and has caused • the Program and Plan to be prepared;and WHEREAS,the City and EDA have performed all actions required by law to be performed prior to the adoption of the Program and Plan. The EDA has also requested the City Planning Commissioner to provide for review of and written comment on Program and Plan and that the Council schedule a public hearing on the Program and Plan upon published notice as required by law. NOW,THEREFORE,BE IT RESOLVED by the Board as follows: 1. The EDA hereby fords that Tax Increment Financing District No. 1-11 is in the public interest and is a"redevelopment district"under Minnesota Statutes, Section 469.174,subd. 10(a)(2), and fords that the adoption of the proposed Program and Plan conform in all respects to the requirements of the Act and will help fulfill a need to develop an area of the State of Minnesota which is already built up and that the adoption of the proposed Program and Plan will help provide employment opportunities in the State and in the preservation and enhancement of the tax base of the City and the State because it will discourage commerce and industry from moving their operations to another state or municipality and thereby serves a public purpose. 2. The EDA further finds that the Program and Plan will afford maximum opportunity, consistent with the sound needs for the City as a whole, for the development or redevelopment of the project area by private enterprise in that the intent is to provide only that public assistance necessary to make the private developments fmancially feasible. 3. Conditioned upon the approval thereof by the City Council following its public hearing thereon, the Program and Plan, as presented to the EDA on this date, are hereby approved, established and adopted and shall be placed on file in the office of the City Clerk. 4. Upon approval of the Program and Plan by the City Council, the staff, the EDA's advisors and legal counsel are authorized and directed to proceed with the implementation of the Michelle Wolfe- EDA res.doc Page 2 • Program and Plan and for this purpose to negotiate, draft, prepare and present to this Board for its consideration all further plans, resolutions, documents and contracts necessary for this purpose. Approval of the Program and Plan does not constitute approval of any project or a Development Agreement with any developer. 5. The City Clerk is authorized and directed to forward a copy of the Program and Plan to the Washington County Auditor and request that the Auditor certify the original tax capacity of the District as described in the Program and Plan,all in accordance with Minnesota Statutes 469.177. Approved by the EDA of the Cottage Grove Economic Development Authority this day of ,2000. Chair ATTEST: Secretary S 1110 • Draft as of July 19, 2000 For Planning Commission Review MODIFICATION TO THE DEVELOPMENT PROGRAM for DEVELOPMENT DISTRICT NO. 1 and TAX INCREMENT FINANCING PLAN for the establishment of TAX INCREMENT FINANCING DISTRICT NO. 1 -11 • (a redevelopment district) COTTAGE GROVE ECONOMIC DEVELOPMENT AUTHORITY CITY OF COTTAGE GROVE WASHINGTON COUNTY STATE OF MINNESOTA Public Hearing: August 16, 2000 Adopted: 0 0E H L E R S Prepared by: EHLERS&ASSOCIATES, INC. 3060 Centre Pointe Drive, Roseville, Minnesota 55113-1105 & a S S o C i n T E S N c (651)697-8500 fax: (651)697-8555 www.ehlers-inc.com TABLE OF CONTENTS • (for reference purposes only) SECTION I - MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1 1-4 Foreword 1-4 SECTION II -TAX INCREMENT FINANCING PLAN FOR TIF DISTRICT NO. 1-11 2-1 Subsection 2-1. Foreword 2-1 Subsection 2-2. Statutory Authority 2-1 Subsection 2-3. Statement of Objectives 2-1 Subsection 2-4. Development Program Overview 2-1 Subsection 2-5. Description of Property in the District and Property To Be Acquired 2-2 Subsection 2-6. Classification of the District 2-2 Subsection 2-7. Duration of the District 2-4 Subsection 2-8. Original Tax Capacity, Tax Rate and Estimated Captured Net Tax Capacity Value/Increment and Notification of Prior Planned Improvements 2-4 Subsection 2-9. Sources of Revenue/Bonded Indebtedness 2-5 Subsection 2-10. Uses of Funds 2-6 Subsection 2-11. State Tax Increment Financing Aid (Local Contribution) 2-7 Subsection 2-12. Fiscal Disparities Election 2-7 Subsection 2-13. Business Subsidies 2-8 Subsection 2-14. County Road Costs 2-8 Subsection 2-15. Estimated Impact on Other Taxing Jurisdictions 2-8 Subsection 2-16. Supporting Documentation 2-9 Subsection 2-17. Definition of Tax Increment Revenues 2-9 Subsection 2-18. Modifications to the District 2-10 Subsection 2-19. Administrative Expenses 2-10 Subsection 2-20. Limitation of Increment 2-11 Subsection 2-21. Use of Tax Increment 2-12 Subsection 2-22. Excess Tax Increments 2-12 Subsection 2-23. Requirements for Agreements with the Developer 2-13 Subsection 2-24. Assessment Agreements 2-13 Subsection 2-25. Administration of the District 2-13 Subsection 2-26. Annual Disclosure Requirements 2-13 Subsection 2-27. Reasonable Expectations 2-14 Subsection 2-28. Other Limitations on the Use of Tax Increment 2-14 Subsection 2-29. Summary 2-15 APPENDIX A- PROJECT DESCRIPTION A-1 APPENDIX B - MAP(S) OF DEVELOPMENT DISTRICT NO. 1 AND THE DISTRICT B-1 APPENDIX C -DESCRIPTION OF PROPERTY TO BE INCLUDED IN THE DISTRICT C-1 APPENDIX D- ESTIMATED CASH FLOW FOR THE DISTRICT D-1 APPENDIX E - MINNESOTA BUSINESS ASSISTANCE FORM E-1 APPENDIX F - REDEVELOPMENT QUALIFICATIONS FOR THE DISTRICT F-1 APPENDIX G - BUT/FOR QUALIFICATIONS G-1 S SECTION I-MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1 Foreword The following text represents a Modification to the Development Program for Development District No. 1. This modification represents a continuation ofthe goals and objectives set forth in the Development Program for Development District No. 1. Generally, the substantive changes include the modification of the Development Program for Development District No. l to include Tax Increment Financing District No. 1-11. For further information, a review of the Development Program for Development District No. 1, adopted January 7, 1985,and most recently modified on June 3, 1998 is recommended. It is available from the City Administrator at the City of Cottage Grove. Other relevant information is contained in the Tax Increment • Financing Plans for the Tax Increment Financing Districts located within Development District No. 1. Subsection A. Definitions (As Modified August 16, 2000) "Tax Increment Financing District" means any Tax Increment Financing District created and established pursuant to the TIF Act within Development District No. I. Established TIF districts within Development District No. I currently include Tax Increment Districts Nos. 1-1, 1-2, 1-3, 1-4, 1,5, 1-7, 1-8, 1-9, 1-10 and 1-11 or any other districts to be established. • Subsection I, Development District Financing (As Modified August 16, 2000) Within Development District No. 1,the City has created TIF Districts No. 1-1, 1-2, 1-3, 1-4, 1-5, 1-7, 1-8, 1-9, 1-10 and 1-11, and may create additional TIF Districts to finance development activities. These TIF Districts were created in conjunction with the establishment of Development District No. 1 as it was approved and is currently amended. Some of the Tax Increment Districts may have expired or been decertified. Subsection L. Description of the Development District The boundaries of Development District No. I are not being modified at this time. S Cottage Grove EDA Modification to the Development Program for Development District No. 1 1-3 SECTION II • TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 1-11 Subsection 2-1. Foreword The Cottage Grove Economic Development Authority(the"EDA"),the City of Cottage Grove(the"City"), staff and consultants have prepared the following information to expedite the establishment of Tax Increment Financing District No. 1-11 ("the District"), a redevelopment tax increment financing district, located in Development District No. 1. Subsection 2-2. Statutory Authority Within the City, there exist areas where public involvement is necessary to cause development or redevelopment to occur. To this end,the EDA and City have certain statutory powers pursuant to Minnesota Statutes ("M.S.'), 469.090 through 469.1081, inclusive, as amended, and M.S., Sections 469.174 through 469.179, inclusive, as amended (the "Tax Increment Financing Act"or "TIF Act"), to assist in financing public costs related to this project. • This Section contains the Tax Increment Financing Plan(the"Plan")for Tax Increment Financing District No. 1-11. Other relevant information is contained in the Modification to the Development Program for Development District No. 1. Subsection 2-3. Statement of Objectives • The District currently consists of three parcels of land and adjacent and internal rights-of-way. The District is being created to facilitate redevelopment of an under utilized railroad right of way in the City of Cottage Grove. Contracts for this have not been entered into at the time of preparation of this Plan,but the date when development is likely to occur is 2000. This Plan is expected to achieve many of the objectives outlined in the Development Program for Development District No. 1. The activities contemplated in the Modification to the Development Program and the Plan do not preclude the undertaking of other qualified development or redevelopment activities. These activities are anticipated to occur over the life of Development District No. l and the District. Subsection 2-4. Development Program Overview I. Property to be Acquired- Selected property located within the District may be acquired by the EDA or City and is further described in this Plan. 2. Relocation - Relocation services, to the extent required by law, are available pursuant to M.S., Chapter 117 and other relevant state and federal laws. 3. Upon approval of a developer's plan relating to the project and completion of the necessary legal requirements, the EDA or City may sell to a developer selected properties that they may acquire within the District or may lease land or facilities to a developer. 4. The EDA or City may perform or provide for some or all necessary acquisition, • construction,relocation,demolition,and required utilities and public streets work within the Cottage Grove Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No. 1-11 2-1 • District. Subsection 2-5. Description of Property in the District and Property To Be Acquired The District encompasses all property and adjacent rights-of-way identified by the parcel(s) listed below. See the map in Appendix B for further information on the location of the District. Parcel Numbers 17-027-21-32-0001 17-027-21-43-0001 20-027-21-11-0001 The EDA or City may acquire any parcel within the Tax Increment Financing District No. 1-11, including interior and adjacent street rights of way. Any properties identified for acquisition will be acquired by the EDA or City only in order to accomplish one or more of the following: public improvements;provide land for needed public streets, utilities and facilities; carry out land acquisition, site improvements, clearance and/or development to accomplish the uses and objectives set forth in this plan. The EDA or City may acquire property by gift,dedication,condemnation or direct purchase from willing sellers in order to achieve the objectives of this Plan. Such acquisitions will be undertaken only when there is assurance of funding to finance the acquisition and related costs. Subsection 2-6. Classification of the District The EDA and City, in determining the need to create a tax increment financing district in accordance with • M.S., Sections 469.174 to 469.179. as amended, inclusive, find that the District, to be established, is a redevelopment district pursuant to M.S., Section 469.174, Subd 10(a)(2) blias defined below: (a) "Redevelopment district"means a type of tax increment financing district consisting of a project, or portions of a project, within which the authority finds by resolution that one or more of the following conditions, reasonably distributed throughout the district, exists: (1) parcels consisting of 70 percent of the area in the district are occupied by buildings,streets, utilities, or other improvements and more than 50 percent of the buildings, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance; or (2) The property consists of vacant, unused, underused, inappropriately used, or infrequently used rail yards, rail storage facilities or excessive or vacated railroad rights-of-way; or (3) tank facilities, or property whose immediately previous use was for tank facilities, as defined in Section 115C, Subd. 15, if the tank facility: (i) have or had a capacity of more than one million gallons; (ii) are located adjacent to rail facilities; or (iii)have been removed, or are unused, underused, inappropriately used or infrequently used.. (b) For purposes of this subdivision, "structurally substandard"shall mean containing defects in • structural elements or a combination of deficiencies in essential utilities and facilities, light and Cottage Grove Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No. 1-11 2-2 ventilation,fire protection including adequate egress,layout and condition of interior partitions, or similar factors, which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance. (c) A building is not structurally substandard if it is in compliance with the building code applicable to new buildings or could be modified to satisfy the building code at a cost of less than 15 percent of the cost of constructing a new structure of the same square footage and type on the site. The municipality may find that a building is not disqualified as structurally substandard under the preceding sentence on the basis of reasonably available evidence, such as the size, type, and age of the building, the average cost of plumbing, electrical, or structural repairs or other similar reliable evidence. The municipality may not make such a determination without an interior inspection of the property, but need not have an independent, expert appraisal prepared of the cost of repair and rehabilitation of the building. An interior inspection of the property is not required, if the municipality finds that(1)the municipality or authority is unable to gain access to the property after using its best efforts to obtain permission from the party that owns or controls the property;and(2)the evidence otherwise supports a reasonable conclusion that the building is structurally substandard... (d) A parcel is deemed to be occupied by a structurally substandard building for purposes of the finding under paragraph (a) if all of the following conditions are met: (1) the parcel was occupied by a substandard building within three years of the filing of the request for certification of the parcel as part of the district with the county auditor; (2) the substandard building was demolished or removed by the authority or the demolition or11111 removal was financed by the authority or was done by a developer under a development agreement with the authority; (3) the authority found by resolution before the demolition or removal that the parcel was occupied by a structurally substandard building and that after demolition and clearance the authority intended to include the parcel within a district; and (4) upon filing the request for certification of the tax capacity of the parcel as part of a district, the authority notifies the county auditor that the original tax capacity of the parcel must be adjusted as provided by§469.177, subdivision 1,paragraph (h). (e) For purposes of this subdivision, a parcel is not occupied by buildings,streets, utilities, or other improvements unless 15 percent of the area of the parcel contains improvements. (f) For districts consisting of two or more noncontiguous areas, each area must qualms as a redevelopment district under paragraph(a)to be included in the district, and the entire area of the district must satisfy paragraph(a). In meeting the statutory criteria the EDA and City rely on the following facts and findings: ❑ The District is a redevelopment district consisting of three parcels. o The property consists of vacant,unused,underused,inappropriately used,or infrequently used railyards, rail storage facilities or excessive or vacated railroad rights-of-way. (See Appendix F). • Cottage Grove Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No. 1-11 2-3 Pursuant to 469.176 Subd. 7,the District does not contain any parcel or part of a parcel that qualified under • the provisions of Section 273.111 or 273.112 of Chapter 4731-1 for taxes payable in any of the five calendar years before the filing of the request for certification of the District. Subsection 2-7. Duration of the District Pursuant to M.S., Section 469.175, Subd. 1, and Section 469.176, Subd. 1,the duration of the District must be indicated within the Plan. Pursuant to M.S., Section 469.176, Subd. Ib,the duration of the District will be 25 years from the date of receipt of the first increment by the EDA or City(a total of 26 years). The date of receipt by the City of the first tax increment is expected to be 2002. Thus,it is estimated that the District, including any modifications of the Plan for subsequent phases or other changes,would terminate after 2027, or when the Plan is satisfied. The EDA or City reserves the right to decertify the District prior to the legally required date. Subsection 2-8. Original Tax Capacity,Tax Rate and Estimated Captured Net Tax Capacity Value/Increment and Notification of Prior Planned Improvements Pursuant to M.S.,Section 469.174,Subd. 7and M.S.,Section 469.177,Subd. I,the Original Net Tax Capacity (ONTC)as certified for the District will be based on the market values placed on the property by the assessor in 2000 for taxes payable 2001. Pursuant to M.S., Section 469.177, Subds. 1 and 2,the County Auditor shall certify in each year(beginning in the payment year 2002)the amount by which the original value has increased or decreased as a result of: • 1. change in tax exempt status of property; 2. reduction or enlargement of the geographic boundaries of the district; 3. change due to adjustments, negotiated or court-ordered abatements; 4. change in the use of the property and classification; 5. change in state law governing class rates; or 6. change in connection with previously issued building permits. In any year in which the current Net Tax Capacity value of the District declines below the ONTC,no value will be captured and no tax increment will be payable to the EDA or City. The original local tax rate for the District will be the local tax rate for taxes payable 2001, assuming the request for certification is made before June 30, 2001. The Original Tax Capacity and the Original Local Tax Rate for the District appear in the table below. The Tax Capacity Rate used for estimate purposes of this Plan is the Tax Capacity Rate for taxes payable in 2000. Pursuant to M.S., Section 469.174 Subd. 4 and M.S., Section 469.177, Subd. 1, 2, and 4, the estimated Captured Net Tax Capacity(CTC)of the District,within Development District No. 1, upon completion of the project,will annually approximate tax increment revenues as shown in the table below. The EDA and City request 100 percent of the available increase in tax capacity for repayment of its obligations and current expenditures,beginning in the tax year payable 2002. The project tax capacity listed is an estimate of values when the project is completed. • Cottage Grove Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No. I-I l 2-4 Project Estimated Tax Capacity upon Completion (PTC) 1,887,574 • Original Estimated Net Tax Capacity(ONTC) 43,199 Estimated Captured Tax Capacity (CTC) 1,844,375 Original Local Tax Rate 1.2149 Pay 2000 Estimated Annual Tax Increment(CTC x Local Tax Rate) $2,240,731 Percent Retained by the EDA 100% Pursuant to M.S., Section 469.177, Subd. 4, the EDA shall, after due and diligent search, accompany its • request for certification to the County Auditor or its notice of the District enlargement pursuant to M.S., Section 469.175, Subd. 4,with a listing of all properties within the District or area of enlargement for which building permits have been issued during the eighteen (18)months immediately preceding approval of the Plan by the municipality pursuant to M.S., Section 469.175, Subd. 3. The County Auditor shall increase the original net tax capacity of the District by the net tax capacity of improvements for which a building permit • was issued. The EDA is reviewing the area to be included in the District to determine if any building permits have been issued during the 18 months immediately preceding approval of the Plan by the City. Subsection 2-9. Sources of Revenue/Bonded Indebtedness • Public improvement costs,land acquisition,utilities,streets and sidewalks,preparation costs,and other costs outlined in the Uses of Funds will be financed primarily through the annual collection of tax increments. The EDA or City reserves the right to use other sources of revenue legally applicable to the EDA or City and the Plan, including, but not limited to, special assessments, general property taxes, state aid for road maintenance and construction,proceeds from the sale of land,other contributions from the developer, invest- ment income, and other City or EDA funds,to pay for the estimated public costs. The EDA or City reserves the right to incur bonded indebtedness or other indebtedness as a result of the Plan. As presently proposed,the project will be financed by a combination of a bond issue,pay-as-you-go notes and interfund loans and transfers from other City or EDA funds. Additional indebtedness may be required to finance other authorized activities. The total principal amount of bonded indebtedness and/or other indebtedness related to the use of tax increment financing will not exceed $55,000,000 without a modification to the Plan pursuant to applicable statutory requirements. This provision does not obligate the EDA or City to incur debt. The EDA or City will issue bonds or incur other debt only upon the determination that such action is in the best interest of the City. The EDA or City may also finance the activities to be undertaken pursuant to the Plan through loans from funds of the EDA or City or to reimburse the developer on a"pay-as-you-go"basis for eligible costs paid for by a developer. The estimated sources of funds for the District are contained in the table below. • Cottage Grove Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No. 1-11 2-5 • SOURCES OF FUNDS TOTAL Tax Increment $54,800,191 Interest $10,000 PROJECT REVENUES $54,810,191 Interfund Loans/Transfers $54,800,191 Bond Proceeds $55,000,000 TOTAL PROJECT AND FINANCING REVENUES $164,610,382 Subsection 2-10. Uses of Funds • Currently under consideration for the District is a proposal to facilitate redevelopment of an under utilized railroad right of way. The EDA and City have determined that it will be necessary to provide assistance to the project for certain costs. The EDA has studied the feasibility of the development or redevelopment of property in and around the District. To facilitate the establishment and development or redevelopment of • the District, this Plan authorizes the use of tax increment financing to pay for the cost of certain eligible expenses. The estimate of public costs and uses of funds associated with the District is outlined in the following table. USES OF FUNDS TOTAL • Land/Building Acquisition $3,600,000 Site Improvements/Preparation $12,300,000 Public Utilities $13,000,000 Parking Facilities $0 Streets and Sidewalks $4,000,000 Interest Other Public Improvements $0 Administrative Costs(up to 10%) $5,480,019 PROJECT COSTS TOTAL $38,380,019 Interfund Loans/Transfers $54,800,191 Bond Interest $9,030,172 Bond Principal $55,000,000 Loan Interest $9,000,000 TOTAL FINANCING AND PROJECT COSTS $166,210,382 The above budget is organized according to the OSA reporting forms. The budget assumes full project built on an aggressive time schedule. The estimated project costs are$32,000,000 as indicated above. Estimated costs associated with the District are subject to change among categories without a modification 1111 to this Plan. The cost of all activities to be considered for tax increment financing will not exceed,without formal modification,the budget above pursuant to the applicable statutory requirements. Pursuant to M.S., Cottage Grove Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No. 1-11 2-6 Section 469.1763,Subd. 2,no more than 25 percent of the tax increment paid by property within the District • will be spent on activities related to development or redevelopment outside of the District but within the boundaries of Development District No. 1,(including administrative costs,which are considered to be spent outside of the District)subject to the limitations as described in this Plan. The costs to be expended outside of the District,but within the boundaries of Development District No. 1 are included in the budget above. Subsection 2-11. State Tax Increment Financing Aid (Local Contribution) Pursuant to M.S., Section 273.1399, for tax increment financing districts for which certification was requested after April 30, 1990, a municipality incurs a reduction in state tax increment financing aid (RISTIFA) applied to the municipality's Local Government Aids (LGA) first and, Homestead and Agricultural Aid (HACA) second, in an amount equal to a formula based upon the equalized qualifying captured tax capacity(QCTC)of the tax increment financing district. Pursuant to M.S., Section 273.1399, Subd. 6, the EDA or City may choose an option to the LGA-HACA penalty. The District is exempt from the LGA-HACA reduction if the EDA or City elects to make a qualifying local contribution at the time of approving the tax increment financing plan. To qualify for the exemption in each year,the EDA or City must make a qualifying local contribution to the project of a certain • percentage. The local contribution for a redevelopment districts is 5 percent. The maximum local contribution for all districts in the City in any year is limited to two percent of the City's net tax capacity, after which point the EDA or City must make an additional contribution equal to the lesser of(a)0.25 percent of the City's net tax capacity or(b)3 percent of tax increment revenues for that year. The amount of the local contribution must be made out of unrestricted money of the EDA or City, such as the general fund, a property tax levy, or a federal or state grant-in-aid which may be spent for general • government purposes. The local contribution may not be made, directly or indirectly,with tax increments or developer payments. The local contribution must be used to pay project costs and cannot be used for general government purposes. The EDA elects to make the annual local contribution to the project to exempt itself from the LGA- HACA penalty. The EDA or City will pay for costs of the project described in this Plan,in an amount equal to 5 percent of annual tax increment for the District, subject to the limitations described above, in any year in which such amount exceeds 2 percent of the City's net tax capacity. Such contribution may be in form of either lump sum or annual payments(in addition to tax increment payments)towards costs identified in this Plan or other costs related to that development or redevelopment. The contribution may also be made in the form of public improvements financed by the EDA or City or other unit of government with unrestricted funds. The City anticipates making its local contribution towards the construction of a portion of the storm water channel from City and/or EDA revenues. Subsection 2-12. Fiscal Disparities Election Pursuant to M.S.,Section 469.177,Subd 3,the City or EDA may elect one of two methods to calculate fiscal disparities. If the calculations pursuant to M.S.,Section 469.177, Subd. 3, clause a,(outside the District)are followed,the following method of computation shall apply: (1) The original net tax capacity and the current net tax capacity shall be determined before the • application of the fiscal disparity provisions of Chapter 276A or 473F. Where the original net Cottage Grove Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No. 1-11 2-7 • tax capacity is equal to or greater than the current net tax capacity, there is no captured net tax capacity and no tax increment determination. Where the original net tax capacity is less than the current net tax capacity, the difference between the original net tax capacity and the current net tax capacity is the captured net tax capacity. This amount less any portion thereof which the authority has designated, in its tax increment financing plan, to share with the local taxing districts is the retained captured net tax capacity of the authority. (2) The county auditor shall exclude the retained captured net tax capacity of the authority from the net tax capacity of the local taxing districts in determining local taxing district tax rates. The local tax rates so determined are to be extended against the retained captured net tax capacity of the authority as well as the net tax capacity of the local taxing districts. The tax generated by the extension of the lesser of(A) the local taxing district tax rates or (B) the original local tax rate to the retained captured net tax capacity of the authority is the tax increment of the • authority. The City or EDA shall submit to the County Auditor at the time of the request for certification which method of computation of fiscal disparities the City or EDA elected. The EDA will choose to calculate fiscal disparities by clause a. According to M.S., Section 469.177, Subd. 3: (c) The method of computation of tax increment applied to a district pursuant to paragraph(a) or (b) shall remain the same for the duration of the district, except that the governing body may • elect to change its election from the method of computation in paragraph (a) to the method in paragraph (b). Subsection 2-13. Business Subsidies To the extent applicable,the EDA or City agrees to comply with M.S.,Section 1161993 to 1161994,which states that a local unit of government granting financial assistance to a business for economic development or job growth purposes, including tax increment financing, must establish business subsidy criteria and approve a business subsidy agreement with the business receiving the assistance. (See Appendix E). Subsection 2-14.County Road Costs Pursuant to M.S.,Section 469.175, Subd. 1a,the county board may require the EDA or City to pay for all or part of the cost of county road improvements if the proposed development to be assisted by tax increment will,in the judgement of the county,substantially increase the use of county roads requiring construction of road improvements or other road costs and if the road improvements are not scheduled within the next five years under a capital improvement plan or within five years under another county plan. In the opinion of the EDA and City and consultants,the proposed development outlined in this Plan will have little or no impact upon county roads. If the county elects to use increments to improve county roads,it must notify the EDA or City within forty-five days of receipt of this Plan. Subsection 2-15. Estimated Impact on Other Taxing Jurisdictions • The estimated impact on other taxing jurisdictions assumes that the redevelopment contemplated by the Plan Cottage Grove Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No. 1-11 2-8 would occur without the creation of the District. However, the EDA or City has determined that such • development or redevelopment would not occur "but for" tax increment financing and that, therefore, the fiscal impact on other taxing jurisdictions is $0. The estimated fiscal impact of the District would be as follows if the "but for"test was not met: IMPACT ON TAX BASE 1999/2000 Estimated Captured Total Net Tax Capacity (CTC) Percent of CTC Tax Capacity Upon Completion to Entity Total Washington County 153,137,857 1,844,375 1.20% City of Cottage Grove 16,158,493 1,844,375 11.41% South Washington County 51,124,336 1,844,375 3.61% ISD No. 833 Other 153,137,857 1,844,375 1.20% IMPACT ON TAX RATES 1999/2000 Percent Potential Extension Rates of Total CTC Taxes Washington County 0.280970 23.13% 1,844,375 518,214 City of Cottage Grove 0.277020 22.80% 1,844,375 510,929 South Washington County 0.559370 46.04% 1,844,375 1,031,688 ISD No. 833 Other 0.097540 8.03% 1,844,375 179.900 Total 1.214900 100.00% 2,240,731 The estimates listed above display the captured tax capacity when all construction is completed. The tax rate used for calculations is the 1999/Pay 2000 rate. The total net capacity for the entities listed above are based on Pay 2000 figures. The District will be certified under the actual 2000/Pay 2001 rates. Subsection 2-16. Supporting Documentation Pursuant to M.S. Section 469.175 Subd la, clause 7 the Plan must contain identification and description of studies and analyses used to make the determination set forth in M.S. Section 469.175 Subd 3, clause (2). Following is a list of reports and studies on file at the City that support the authority's findings: (A list studies will be included prior to the public hearing) Subsection 2-17. Definition of Tax Increment Revenues Pursuant to M.S., Section 469.174, Subd. 25,tax increment revenues derived from a tax increment financing district include all of the following potential revenue sources: • Collage Grove Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No. 1-11 2-9 1. taxes paid by the captured net tax capacity,but excluding any excess taxes,as computed under M.S., Section 469.177; 2. the proceeds from the sale or lease of property, tangible or intangible, purchased by the authority with tax increments; 3. repayments of loans or other advances made by the authority with tax increments; and 4. interest or other investment earnings on or from tax increments. Subsection 2-18. Modifications to the District In accordance with M.S., Section 469.175, Subd. 4,any: 1. reduction or enlargement of the geographic area of Development District No. 1 or the District; 2. increase in amount of bonded indebtedness to be incurred, including a determination to capitalize interest on debt if that determination was not a part of the original plan, or to increase or decrease the amount of interest on the debt to be capitalized; 3. increase in the portion of the captured net tax capacity to be retained by the EDA or City; 4. increase in total estimated tax increment expenditures; or 5. designation of additional property to be acquired by the EDA or City, • shall be approved upon the notice and after the discussion,public hearing and findings required for approval of the original Plan. Pursuant to M.S. Section 469.175 Subd. 4(b), the geographic area of the District may be reduced, but shall not be enlarged after five years following the date of certification of the original net tax capacity by the • county auditor. If a redevelopment district is enlarged,the reasons and supporting facts for the determination that the addition to the district meets the criteria of M.S., Section 469.174, Subd. 10, paragraph(a),clauses (1)to(5), must be documented in writing and retained. The requirements of this paragraph do not apply if (1)the only modification is elimination of parcel(s)from Development District No. l or the District and(2) (A)the current net tax capacity of the parcel(s)eliminated from the District equals or exceeds the net tax capacity of those parcel(s) in the District's original net tax capacity or (B) the EDA agrees that, notwithstanding M.S.,Section 469.177,Subd. 1,the original net tax capacity will be reduced by no more than the current net tax capacity of the parcel(s)eliminated from the District. The EDA or City must notify the County Auditor of any modification that reduces or enlarges the geographic area of Development District No. 1 or the District. Modifications to the District in the form of a budget modification or an expansion of the boundaries will be recorded in the Plan. Subsection 2-19.Administrative Expenses In accordance with M.S., Section 469.174, Subd. 14, and M.S., Section 469.176, Subd. 3, administrative expenses means all expenditures of the EDA or City, other than: 1. amounts paid for the purchase of land; 2. amounts paid to contractors or others providing materials and services, including architectural and engineering services, directly connected with the physical development of the real property in the project; 3. relocation benefits paid to or services provided for persons residing or businesses located in the project; or 4. amounts used to pay principal or interest on, fund a reserve for, or sell at a discount bonds issued Cottage Grove Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No. 1-11 2-10 pursuant to M.S., Section 469.178; or • 5. amounts used to pay other financial obligations to the extent those obligations were used to finance costs described in sections 1 to 3. For districts for which the request for certification were made before August 1, 1979,or after June 30, 1982, administrative expenses also include amounts paid for services provided by bond counsel,fiscal consultants, and planning or economic development consultants. Tax increment may be used to pay any authorized and documented administrative expenses for the District up to but not to exceed 10 percent of the total tax increment expenditures authorized by the Plan or the total tax increment expenditures for Development District No. 1,whichever is less. Pursuant to M.S., Section 469.176, Subd. 4h, tax increments may be used to pay for the county's actual administrative expenses incurred in connection with the District. The county may require payment of those expenses by February 15 of the year following the year the expenses were incurred. Pursuant to M.S., Section 469. 177, Subd. ll, the county treasurer shall deduct an amount equal to 0.25 percent of any increment distributed to the EDA or City and the county treasurer shall pay the amount deducted to the state treasurer for deposit in the state general fund to be appropriated to the State Auditor . for the cost of financial reporting of tax increment financing information and the cost of examining and auditing authorities' use of tax increment financing. Subsection 2-20. Limitation of Increment Pursuant to M.S., Section 469.176, Subd. Ia, no tax increment shall be paid to the EDA or City for the District after three (3) years from the date of certification of the Original Net Tax Capacity value of the taxable property in the District by the County Auditor unless within the three(3)year period: (a) bonds have been issued in aid of the project containing the district pursuant to M.S.,Section 469.178,or any other law,except revenue bonds issued pursuant to M.S., Sections 469.152 to 469.165,or (b) the EDA or City has acquired property within the District,or (c) the EDA or City has constructed or caused to be constructed public improvements within the District. The bonds must be issued, or the EDA or City must acquire property or construct or cause public improvements to be constructed by approximately August, 2003 and report such actions to the County Auditor. The tax increment pledged to the payment of bonds and interest thereon may be discharged and the District may be terminated if sufficient funds have been irrevocably deposited in the debt service fund or other escrow account held in trust for all outstanding bonds to provide for the payment of the bonds at maturity or redemption date. Pursuant to M.S., Section 469.176, Subd. 6: if, after four years from the date of certification of the original net tax capacity of the tax increment financing district pursuant to M.S., Section 469.177, no demolition, rehabilitation or renovation of • Cottage Grove Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No. 1-11 2-11 • property or other site preparation, including qualified improvement of a street adjacent to a parcel but not installation of utility service including sewer or water systems, has been commenced on a parcel located within a tax increment financing district by the authority or by the owner of the parcel in accordance with the tax increment financing plan, no additional tax increment may be taken from that parcel and the original net tax capacity of that parcel shall be excluded from the original net tax capacity of the tax increment financing district. If the authority or the owner of the parcel subsequently commences demolition, rehabilitation or renovation or other site preparation on that parcel including qualified improvement of a street adjacent to that parcel, in accordance with the tax increment financing plan, the authority shall certify to the county auditor that the activity has commenced and the county auditor shall certify the net tax capacity thereof as most recently certified by the commissioner of revenue and add it to the original net tax capacity of the tax increment financing district. The county auditor must enforce the provisions of this subdivision. The authority must submit to the county auditor evidence that the required activity has taken place • for each parcel in the district. The evidence for a parcel must be submitted by February 1 of the fifth year following the year in which the parcel was certified as included in the district. For purposes of this subdivision, qualified improvements of a street are limited to(1)construction or opening of a new street, (2)relocation of a street,and(3)substantial reconstruction or rebuilding of an existing street. • The EDA or City or a property owner must improve parcels within the District by approximately August, 2004 and report such actions to the County Auditor. Subsection 2-21. Use of Tax Increment • The EDA or City hereby determines that it will use 100 percent of the captured net tax capacity of taxable property located in the District for the following purposes: 1. to pay the principal of and interest on bonds issued to finance a project; 2. to finance,or otherwise pay the cost of redevelopment of the Development District No. 1 pursuant to the M.S., Sections 469.090 to 469.1081; 3. to pay for project costs as identified in the budget set forth in the Plan; 4. to finance, or otherwise pay for other purposes as provided in M.S., Section 469.176, Subd. 4; 5. to pay principal and interest on any loans,advances or other payments made to or on behalf the EDA or City or for the benefit of Development District No. 1 by a developer; 6. to finance or otherwise pay premiums and other costs for insurance or other security guaranteeing the payment when due of principal of and interest on bonds pursuant to the Plan or pursuant to M.S., Chapter 462C. M.S., Sections 469.152 through 469.165, and/or M.S., Sections 469.178; and 7. to accumulate or maintain a reserve securing the payment when due of the principal and interest on the tax increment bonds or bonds issued pursuant to M.S., Chapter 462C, M.S., Sections 469.152 through 469.165,and/or M.S., Sections 469.178. These revenues shall not be used to circumvent any levy limitations applicable to the City nor for other purposes prohibited by M.S., Section 469.176, subd. 4. Tax increments generated in the District will be paid by Washington County to the EDA for the Tax Increment Fund of said District. The EDA or City will pay to the developer(s)annually an amount not to exceed an amount as specified in a developer's agreement to reimburse the costs of land acquisition,public • improvements,demolition and relocation,site preparation,and administration. Remaining increment funds will be used for EDA or City administration(up to 10 percent)and the costs of public improvement activities Cottage Grove Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No. 1-11 2-12 outside the District. • Subsection 2-22. Excess Tax Increments Pursuant to M.S., Section 469.176, Subd. 2, in any year in which the tax increment exceeds the amount necessary to pay the costs authorized by the Plan, including the amount necessary to cancel any tax levy as provided in M.S., Section 475.61, Subd. 3, the EDA or City shall use the excess amount to do any of the following: 1. prepay any outstanding bonds; 2. discharge the pledge of tax increment therefor; 3. pay into an escrow account dedicated to the payment of such bonds; or 4. return the excess to the County Auditor for redistribution to the respective taxing jurisdictions in proportion to their local tax rates. In addition, the EDA or City may, subject to the limitations set forth herein, choose to modify the Plan in order to finance additional public costs in Development District No. I or the District. Subsection 2-23. Requirements for Agreements with the Developer The EDA or City will review any proposal for private development to determine its conformance with the Development Program and with applicable municipal ordinances and codes. To facilitate this effort, the following documents may be requested for review and approval: site plan, construction, mechanical, and electrical system drawings,landscaping plan,grading and storm drainage plan,signage system plan,and any other drawings or narrative deemed necessary by the EDA or City to demonstrate the conformance of the • development with City plans and ordinances. The EDA or City may also use the Agreements to address other issues related to the development. Pursuant to M.S., Section 469.176, Subd. 5, no more than 25 percent, by acreage, of the property to be acquired in the District as set forth in the Plan shall at any time be owned by the EDA or City as a result of acquisition with the proceeds of bonds issued pursuant to M.S., Section 469.178 to which tax increments from property acquired is pledged,unless prior to acquisition in excess of 25 percent of the acreage,the EDA or City concluded an agreement for the development or redevelopment of the property acquired and which provides recourse for the EDA or City should the development or redevelopment not be completed. Subsection 2-24.Assessment Agreements Pursuant to M.S., Section 469.177,Subd. 8,the EDA or City may enter into a written assessment agreement in recordable form with the developer of property within the District which establishes a minimum market value of the land and completed improvements for the duration of the District. The assessment agreement shall be presented to the assessor who shall review the plans and specifications for the improvements to be constructed, review the market value previously assigned to the land upon which the improvements are to be constructed and, so long as the minimum market value contained in the assessment agreement appears, in the judgment of the assessor, to be a reasonable estimate, the assessor shall also certify the minimum market value agreement. Subsection 2-25.Administration of the District Administration of the District will be handled by the Acting Economic Development Director of the City of . Cottage Grove Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No. 1-11 2-13 • Cottage Grove.. Subsection 2-26.Annual Disclosure Requirements Pursuant to M.S., Section 469.175, Subd. 5, 6 and 6a the EDA or City must file an annual disclosure report for all tax increment financing districts to the Office of the State Auditor,including the District. The report shall also be filed with the County Board,County Auditor and School Board on or before August 1 of each year. M.S., Section 469.175, Subd. 5 also provides that an annual statement shall be published in a newspaper of general circulation in the City on or before August 15. If theCity fails to make a disclosure or submit a report containing the information required by M.S. Section 469.175 Subd. 5, 6 and 6a,the Office of the State Auditor will direct the County Auditor to withhold the distribution of tax increment from the District. • Subsection 2-27. Reasonable Expectations As required by the Tax Increment Financing Act, in establishing the District, the determination has been made that the anticipated development would not reasonably be expected to occur solely through private • investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the District permitted by the Plan. In making said determination,reliance has been placed upon written representatives made by the developer to such effects and upon EDA and City staff awareness of the feasibility of developing the project site. A comparative • analysis of estimated market values both with and without establishment of the District and the use of tax increments has been performed as described above. Such analysis is included with the cashflow in Appendix D.and indicates that the increase in estimated market value of the proposed development(less the indicated subtractions)exceeds the estimated market value of the site absent the establishment of the District and the use of tax increments. Subsection 2-28.Other Limitations on the Use of Tax Increment 1. General Limitations. All revenue derived from tax increment shall be used in accordance with the Plan. The revenues shall be used to finance,or otherwise pay the cost of redevelopment of the Development District No. I pursuant to the M.S., Sections 469.090 to 469.1081. These revenues shall not be used to circumvent existing levy limit law. No revenues derived from tax increment shall be used for the acquisition,construction,renovation,operation,or maintenance of a building to be used primarily and regularly for conducting the business of a municipality, county, school district, or any other local unit of government or the state or federal government or for a commons area used as a public park, or a facility used for social, recreational, or conference purposes. This provision shall not prohibit the use of revenues derived from tax increments for the construction or renovation of a parking structure or of a privately owned facility for conference purposes. 2. Pooling Limitations. At least 75 percent of tax increments from the District must be expended on activities in the District or to pay bonds,to the extent that the proceeds of the bonds were used to finance activities within said district or to pay,or secure payment of,debt service on credit enhanced bonds. Not more than 25 percent of said tax increments may be expended,through a development fund or otherwise, on activities outside of the District except to pay,or secure payment of,debt service on credit enhanced • bonds. For purposes of applying this restriction,all administrative expenses must be treated as if they Cottage Grove Economic Development Authority Tax Increment Financine Plan for Tax Increment Financing District No. 1-11 2-14 were solely for activities outside of the District. • 3. Five Year Limitation on Commitment of Tax Increments. Tax increments derived from the District shall be deemed to have satisfied the 75 percent test set forth in paragraph(2)above only if the five year rule set forth in M.S., Section 469.1763, Subd. 3, has been satisfied; and beginning with the sixth year following certification of the District, 75 percent of said tax increments that remain after expenditures permitted under said five year rule must be used only to pay previously committed expenditures or credit enhanced bonds as more fully set forth in M.S., Section 469.1763, Subd. 5. 4. Redevelopment District. At least 90 percent of the revenues derived from tax increment from a redevelopment district must be used to finance the cost of correcting conditions that allow designation of redevelopment and renewal and renovation districts under MS.,Section 469.176 Subd 4j. These costs include, but are not limited to, acquiring properties containing structurally substandard buildings or improvements or hazardous substances,pollution,or contaminants,acquiring adjacent parcels necessary to provide a site of sufficient size to permit development, demolition and rehabilitation of structures, clearing of the land,the removal of hazardous substances or remediation necessary for development of the land, and installation of utilities,roads, sidewalks,and parking facilities for the site. The allocated administrative expenses of the EDA or City,including the cost of preparation of the development action response plan, may be included in the qualifying costs. Subsection 2-29. Summary The Cottage Grove Economic Development Authority is establishing the District to preserve and enhance the tax base, and provide employment opportunities in the City. The Tax Increment Financing Plan for the District was prepared by Ehlers&Associates,Inc.,3060 Centre Pointe Drive,Roseville,Minnesota 55113- 1105, telephone(651)697-8500. • • Cottage Grove Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No. 1-11 2-15 APPENDIX A • PROJECT DESCRIPTION The City of Cottage Grove is considering a project to assist in the redevelopment of a section of property along the railroad corridor. The project,as envisioned,could accommodate up to four large manufacturing buildings. The immediate project is by Tower Automotive, represented by Cushman & Wakefield,who is proposing to construct a 212,000 square foot manufacturing building with a taxable minimum market value of$14 million on a parcel estimated at 25.2 acres within the City of Cottage Grove. The parcel is located south of Highway 61,west of Jamaica Avenue,north of 95th Street. The relocation will create 25 administrative jobs, 100 manufacturing jobs, and an additional 50 indirect jobs are expected to be created. In order to facilitate this project it is expected that the City of Cottage Grove would purchase land, install water,sewer,and storm water infrastructure,road improvements,and an upgrade and addition to and on-site and off-site storm water holding area to accommodate the anticipated development of the area. As part of the infrastructure necessary to accommodate the additional manufacturing facilities, the City will also provide for construction of a portion of a storm water channel to facilitate downstream drainage,that may be,in part or in whole,outside Tax Increment District No. 1-11,but inside Development District No. 1. The construction of this channel will create a buffer between the manufacturing area and the nearby residential area. The existing substandard buildings and non-conforming use of the property is having a negative impact on the aesthetics of the area and is inhibiting the ability to further develop the industrial park. SThe City of Cottage Grove finds it necessary to assist in the costs of land,infrastructure and site preparation to accommodate the development. Tax Increment will be used. in part, to assist the initial developer who is currently considering locating in either Cottage Grove, Minnesota and Menomonie, Wisconsin. • APPENDIX A-16 APPENDIX B MAP(S)OF DEVELOPMENT DISTRICT NO. 1 AND THE DISTRICT • • APPENDIX B-I CITY OF COTTAGE GROVE WASHINGTON COUNTY, MN • DEVELOPMENT DISTRICT NO. 1 TAX INCREMENT FINANCING DISTRICT NO. 1-11 0 _1I1�- • I Willi. 01 ,_i _..1116.. ini:6 flit ■""1"II r wi - q �1I _ iiIII��,Ly.r. •- :,1„� ;„ �� ivi1+— - is m f \'kuiiin ♦ .� 4�1+ `V¢�'�a1+1-fit., ` ,j� r f'-. � iI!AIM ` ` °g. ' .I1. _:., FIs ■ f Pc. --a„,4,- ■�. $ `fit' --17-4... r.' Ikel,. IIIIMM N '_ ....4__,.:.,.. >J . n. A mf=Ent= Ire L E 111111111.11 El • iattri_. 111 • A, �'� 111 � ---C75.:-F- � .. B. =4 - , EINE” - 'i 0 - 111, M 111 `1 ____._• __,,;--,- _______.-;_:;__:=3_ 111'ID 11 ``_, ria7,Am ' "..,.,.,4_:__1__. --'� .-.--m- : i.a_.._ / .... ti 111�9flLh����,l.a ". ice °�'y.... IIIL-I 1 0 1 2 Miles i Tax Increment Financing District No. 1-11 O City Boundary CDDevelopment District No. 1 Boundary '= Mississippi River IPokvaysnamen dream m 162,00 APPENDIX C • DESCRIPTION OF PROPERTY TO BE INCLUDED IN THE DISTRICT The District encompasses all property and adjacent rights-of-way identified by the parcel(s)listed below. Parcel Numbers 17-027-21-32-0001 17-027-21-43-0001 20-027-21-11-0001 • • APPENDIX C-I APPENDIX D • ESTIMATED CASH FLOW FOR THE DISTRICT • • APPENDIX D_I CITY OF C OTTAGE GROVE,MINNESOTA TAX INCREMENT FINANCING DISTRICT Railroad Right-of-Way Redevelopment District Fiscal Disparities from outside the District(A Election) T.I.F.CASH FLOW ASSUMPTIONS-LOCAL MATCH • Pay-As-You-Go Interest Rate: 8.000% Tax Extension Rate: 121.490% P2000 Inflation Rate: 6.5000% First Year Increment: 2002 BASE VALUE INFORMATION Tax Parcel No. Class Rate Market Value' Capacily 17-027-21-32-0001 C/I 768,200 24,619 17-027-21-43-0001 C/I 283,000 8,122 20-027-21-11-0001 C/I 351,700 10,458 Total 1,402,900 43,199 County estimates for assessment year 2000 for taxes payable in 2001 • PROJECT VALUE INFORMATION Type of Tax Increment District: Redevelopment Number of Bldgs: 4 Estimated Market Value per Bldg: 14,000,000 Total New Market Value: 56,000,000 Class Rate: C/I Prefered $150,000 2.40% Class Rates for over $150,000 3.40% Taxes Payable Tax Capacity per unit: 474,500 2001 1 Bldg built in 2000 Tax Capacity 474,500 1 Bldg built in 2001 Tax Capacity 474,500 1 Bldg built in 2002 Tax Capacity 474,500 1 Bldg built in 2003 Tax Capacity 464,074 • Ehlers and Associates.Inc. Page 1 TAX INCREMENT CASH FLOW Base Project Captured Semi-Annual Admim. Semi-Annual Local PERIOD BEGINNING Tax Tax Tax Gross Tax at Net Tax Contribution PERIOD ENDING III Yrs. Mth. Yr. Ca_paci - Capacity Capacity Increment 10.00% Increment 5.00% Yrs. Mth. Yr. 0.0 08-01 2000 43,199 43,199 0 0 0 0 0 0.0 02-01 2001 0.0 02-01 2001 43,199 43,199 0 0 0 0 0 0.0 08-01 2001 0.0 08-01 2001 43,199 43,199 0 0 0 0 0 0.0 02-01 2002 0.5 02-01 2002 43,199 474,500 431,301 261,994 (26,199) 235,794 11,790 0.5 08-01 2002 1.0 08-01 2002 43,199 474,500 431,301 261,994 (26,199) 235,794 11,790 1.0 02-01 2003 • 1.5 02-01 2003 43,199 949,000 905,801 550,229 (55,023) 495,206 24,760 1.5 08-01 2003 2.0 08-01 2003 43,199 949,000 905,801 550,229 (55,023) 495,206 24,760 2.0 02-01 2004 2.5 02-01 2004 43,199 1,423,500 1,380,301 838,464 (83,846) 754,617 37,731 2.5 08-01 2004 3.0 08-01 2004 43,199 1,423,500 1,380,301 838,464 (83,846) 754,617 37,731 3.0 02-01 2005 3.5 02-01 2005 43,199 1,887,574 1,844.375 1,120,366 (112,037) 1,008,329 50,416 3.5 08-01 2005 4.0 08-01 2005 43,199 1,887,574 1,844,375 1,120,366 (112,037) 1,008,329 50,416 4.0 02-01 2006 4.5 02-01 2006 43,199 1,887,574 1,844,375 1,120,366 (112,037) 1,008,329 50,416 4.5 08-01 2006 5.0 08-01 2006 43,199 1,887,574 1,844,375 1,120,366 (112,037) 1,008,329 50,416 5.0 02-01 2007 5.5 02-01 2007 43,199 1,887,574 1,844,375 1,120,366 (112,037) 1,008,329 50,416 5.5 08-01 2007 6.0 08-01 2007 43,199 1,887,574 1,844,375 1,120,366 (112,037) 1,008,329 50,416 6.0 02-01 2008 6.5 02-01 2008 43,199 1,887,574 1,844,375 1,120,366 (112,037) 1,008,329 50,416 6.5 08-01 2008 7.0 08-01 2008 43,199 1,887,574 1,844,375 1,120,366 (112,037) 1,008,329 50,416 7.0 02-01 2009 7.5 02-01 2009 43,199 1,887,574 1,844,375 1,120,366 (112,037) 1,008,329 50,416 7.5 08-01 2009 8.0 08-01 2009 43,199 1,887,574 1,844,375 1,120,366 (112,037) 1,008,329 50,416 8.0 02-01 2010 8.5 02-01 2010 43,199 1,887,574 1,844,375 1,120,366 (112,037) 1,008,329 50,416 8.5 08-01 2010 9.0 08-01 2010 43,199 1,887,574 1,844,375 1,120,366 (112,037) 1,008,329 50,416 9.0 02-01 2011 9.5 02-01 2011 43,199 1,887,574 1,844,375 1,120,366 (112,037) 1,008,329 50,416 9.5 08-01 2011 . 10.0 08-01 2011 43,199 1,887,574 1,844,375 1,120,366 (112,037) 1,008,329 50,416 10.0 02-01 2012 10.5 02-01 2012 43,199 1,887,574 1,844,375 1,120,366 (112,037) 1,008,329 50,416 10.5 08-01 2012 11.0 08-01 2012 43,199 1,887,574 1,844,375 1,120,366 (112,037) 1,008,329 50,416 11.0 02-01 2013 11.5 02-01 2013 43,199 1,887,574 1,844,375 1,120,366 (112,037) 1,008,329 50,416 11.5 08-01 2013 12.0 08-01 2013 43,199 1,887,574 1,844,375 1,120,366 (112.037) 1,008,329 50,416 12.0 02-01 2014 12.5 02-01 2014 43,199 1,887,574 1,844,375 1,120,366 (112,037) 1,008,329 50,416 12.5 08-01 2014 13.0 08-01 2014 43,199 1,887,574 1,844,375 1,120,366 (112,037) 1,008,329 50,416 13.0 02-01 2015 13.5 02-01 2015 43,199 1,887,574 1,844,375 1,120,366 (112,037) 1,008,329 50,416 13.5 08-01 2015 14.0 08-01 2015 43,199 1,887,574 1,844,375 1,120,366 (112,037) 1,008,329 50,416 14.0 02-01 2016 • 14.5 02-01 2016 43,199 1,887,574 1,844,375 1,120,366 (112,037) 1,008,329 50,416 14.5 08-01 2016 15.0 08-01 2016 43,199 1,887,574 1,844,375 1,120,366 (112,037) 1,008,329 50,416 15.0 02-01 2017 15.5 02-01 2017 43,199 1,887,574 1,844,375 1,120,366 (112,037) 1,008,329 50,416 15.5 08-01 2017 16.0 08-01 2017 43,199 1,887,574 1,844,375 1,120,366 (112,037) 1,008,329 50,416 16.0 02-01 2018 16.5 02-01 2018 43,199 1,887,574 1,844,375 1,120,366 (112,037) 1,008,329 50,416 16.5 08-01 2018 17.0 08-01 2018 43,199 1,887,574 1,844,375 1,120,366 (112,037) 1,008,329 50,416 17.0 02-01 2019 17.5 02-01 2019 43,199 1,887,574 1,844,375 1,120,366 (112,037) 1,008,329 50,416 17.5 08-01 2019 18.0 08-01 2019 43,199 1,887,574 1,844,375 1,120,366 (112,037) 1,008,329 50,416 18.0 02-01 2020 18.5 02-01 2020 43,199 1,887,574 1,844,375 1,120,366 (112,037) 1,008,329 50,416 18.5 08-01 2020 19.0 08-01 2020 43,199 1,887,574 1,844,375 1,120,366 (112,037) 1,008,329 50,416 19.0 02-01 2021 • 19.5 02-01 2021 43,199 1,887,574 1,844,375 1,120,366 (112,037) 1,008,329 50,416 19.5 08-01 2021 • 20.0 08-01 2021 43,199 1,887,574 1,844,375 1,120,366 (112,037) 1,008,329 50,416 20.0 02-01 2022 20.5 02-01 2022 43,199 1,887,574 1,844,375 1,120,366 (112,037) 1,008,329 50,416 20.5 08-01 2022 21.0 08-01 2022 43,199 1,887,574 1,844,375 1,120,366 (112,037) 1,008,329 50,416 21.0 02-01 2023 21.5 02-01 2023 43,199 1,887,574 1,844,375 1,120,366 (112,037) 1,008,329 50,416 21.5 08-01 2023 • 22.0 08-01 2023 43,199 1,887,574 1,844,375 1,120,366 (112,037) 1,008,329 50,416 22.0 02-01 2024 22.5 02-01 2024 43,199 1,887,574 1,844,375 1,120,366 (112,037) 1,008,329 50,416 22.5 08-01 2024 23.0 08-01 2024 43,199 1,887,574 1,844,375 1,120,366 (112,037) 1,008,329 50,416 23.0 02-01 2025 23.5 02-01 2025 43,199 1,887,574 1,844,375 1,120,366 (112,037) 1,008,329 50,416 23.5 08-01 2025 24.0 08-01 2025 43,199 1,887,574 1,844,375 1,120,366 (112,037) 1,008,329 50,416 24.0 02-01 2026 24.5 02-01 2026 43,199 1,887,574 1,844,375 1,120,366 (112,037) 1,008,329 50,416 24.5 08-01 2026 25.0 08-01 2026 43,199 1,887,574 1,844,375 1,120,366 (112,037) 1,008,329 50,416 25.0 02-01 2027 25.5 02-01 2027 43,199 1,887,574 1,844,375 1,120,366 (112,037) 1,008,329 50,416 25.5 08-01 2027 26.0 08-01 2027 43,199 1,887,574 1,844,375 1,120,366 (112,037) 1,008,329 50.416 26.0 02-01 2028 Totals 54.838,190 (5,483,819) 49,354,371 2,467,698 Present Values 18,933,465 (1,893,347) 17,040,119 852,000 • Ehlers and Associates,Inc. Page 2 APPENDIX E • MINNESOTA BUSINESS ASSISTANCE FORM (MINNESOTA DEPARTMENT OF TRADE AND ECONOMIC DEVELOPMENT) 0 • APPENDIX E-1 3 n 03:9 Trade&— 2000 Minnesota Business Assistance Form Economic Development • • The 2000 Minnesota Business Assistance Form(MBAF)is used to report each business subsidy and financial assistance agreements signed from August 1, 1999 through December 31, 1999 per Minn. Stat. §116J.993 to §116J.995. Please use a separate form to report each agreement. • The following government agencies must submit a 2000 MBAF even if an agreement was not signed during,the period August 1, 1999 through December 31, 1999: 1)any local government/agency that signed a business subsidy agreement since January 1, 1995,or represents a population of more than 2,500;2)all state government agencies. If the local/state government agency does not have any subsidies or assistance to report,please answer questions 1 through 13 and follow directions. • If a local or state government agency that is required to report has not done so by April 1,DTED will mail a warning. If it fails to report by June I,it may not award any business subsidies until a report has been filed. • Questions? Call(651)297-2335. Information on where to mail or fax your completed MBAF(s)in on page 4. Section 1 Information About Grantor 1. Name of grantor(funding entity) 2. Name of person completing this form 3. Street address 4. City 5. ZIP code 6. County 7. Phone number 8. Fax number 9. E-mail address 10. Please indicate who in your organization should receive the 2001 MBAF if different from the person in Question 2. • Name/Title Phone number Street address City ZIP code 11. Classification of grantor(Mark one.If grantor is entity 12. Has your organization held a public hearing on and created by gov't agency,please indicate affiliation. For adopted criteria for awarding business subsidies in example,a city EDA would check "City government.") compliance with Minn.Stat. §1161.994?(Mark one.) 3 City government 3 Yes (Indicate hearing date- and attach criteria) 3 County government D No Regional government 3 We held a public hearing but have not yet adopted State government criteria (Indicate date of initial hearing- 3 Other(Please specify.) 3 Other(Please attach explanation.) 13. Has your organization signed any agreements to award a business subsidy or financial assistance from August 1, 1999 through December 31, 1999 that is required to be reported under Minn.Stat.§1161.993 and§1161.994?(Mark one.) ❑Yes (Complete the remainder of the form.) 0 No (Stop here,go to section 5 on page 4.) Section 2 Information About Recipient 14. Name of business or organization 15. Address where business subsidy or financial assistance receiving subsidy or financial assistance will be used Street address City ZIP code 16. Does the recipient have a parent corporation?(Mark one.) • D Yes(Indicate name and address of parent corporation below. If more than one, indicate ultimate owner.) 3 No Name of parent corporation Street address City State ZIP code 2000 Minnesota Business Assistance Form Page 1 of 4 Department of Trade and Economic Development 17. Industry of recipient's facility(Mark one.): Manufacturing 'U Services 7 Finance,Insurance,Real Estate O Retail Trade 0 Wholesale Trade ❑Construction ❑Other(please specify) 18. Did the recipient relocate as a result of signing this agreement?(Mark one.) • Yes(Indicate city and state of previous address and reason recipient did not complete this project at that address.) No(Go to Question 19.) City/State of previous address Reason project not completed at previous address 19. Would the recipient have remained in previous location or relocated elsewhere if not awarded this business subsidy or financial assistance?(Mark one.) ❑Remained at previous location ❑Relocated to different Minnesota location ❑Relocated outside Minnesota Section 3 General Information About the Agreement 20. Total dollar value of business subsidy or financial 21. Date agreement signed(In addition to the agreement assistance(Please separate by type-see Questions 24 date, indicate any dates the agreement was amended.) and 25- and indicate only principal amount for loans.) 22. Benefit date(Indicate the date the recipient will benefit from the business subsidy or financial assistance. For example, indicate the date improvements were finished, equipment was placed into service,or the recipient occupied the property, whichever is earlier.) 23. Does the agreement provide a business subsidy or one of the four types of financial assistance(see Question 25)required to be reported? (Mark one.) • business subsidy U financial assistance 24.If the agreement provided a business subsidy,please 25. If the assistance was one of the four types of financial indicate the type(s). assistance,please indicate the type(s). not applicable,agreement provided financial assistance D not applicable,agreement provided a business subsidy loan U assistance for property polluted by contaminants grant(i.e.,forgivable loan) 0 assistance for renovating building stock or bringing it up 7 tax abatement to code,when 50%or less of total cost TIF or other tax reduction or deferral O assistance for pollution control or abatement ❑guarantee of payment U assistance for a TIF soils condition district contribution of property or infrastructure preferential use of governmental facilities land contribution other(Specify subsidy type.) 26. If the assistance included tax increment financing,please 27. Are any other grantors providing a business subsidy or indicate the type of TIF district?(Mark one.) financial assistance to the same project? (Mark one.) not applicable,assistance was not in the form of TIF U Yes(Specify each grantor and the value of their assistance below;attach an additional sheet if necessary.) redevelopment 7 renewal and renovation O No soils condition economic development Grantor(s)and value of the agreement(s): mined underground space 0 hazardous substance subdistrict • Grantor Value($) Grantor Value($) 2000 Minnesota Business Assistance Form Page 2 of 4 Department of Trade and Economic Development Section 4 Goals and Public Purpose Identified in the Agreement 28. Minn.Stat. §116J.994 requires that business subsidy and financial assistance agreements state a public purpose. Which of the following public purposes were stated in the agreement? (Mark all that apply.) ❑Enhancing economic diversity ❑Increasing tax base(cannot be only purpose) ❑Creating high-quality job growth ❑Other(please specify) Job retention ❑Other(please specify) ❑ ❑Stabilizing the community Other(please specify) 29. Indicate whether the agreement included the following types of goals,and whether the recipient had attained those goals at the time of this report. (Fill in the boxes and attainment date(s)for each goal.) Goals Target attainment All goals established? dates(month&year) attained? A)Specific wage and job goals to be attained within 2 years ❑Yes ❑No ❑Yes ❑No B)Other job-creation and/or retention goals ❑Yes ❑No ❑Yes ❑No C)Other wage goals ❑Yes 0 No _ ❑Yes ❑No D)Other goals other than wage and job goals ❑Yes ❑No D Yes ❑No (Please attach descriptions of goals and progress toward attainment if not documented in Question 30.) 30. For each of the following wage categories,indicate the job creation and/or retention goals stated in the agreement and the average hourly value of any employer-provided health insurancegoals for those jobs. (Only indicate job creation goals in full-time equivalents if you are unable to separate goals by full-and part-time positions.) Full-time Part-time/ FTE(only if goals not Hourly Wage Job Seasonal/Temp. stated as FT/PT) Job Retention Hourly Value of (excluding benefits) Creation Job Creation Job Creation Health Insurance no hourly wage-level goal less than$7.00 • —$7.00 to$8.99 $9.00 to$10.99 $11.00 to$12.99 $ $13.00 to$14.99 $ $15.00 and higher 31. For each of the following wage categories,indicate the number of actual jobs created and/or retained since the benefit date and the actual hourly value of any employer-provided health insurance for those jobs. (Only indicate job creation in full-time equivalents if you are unable to separate job creation into full-and part-time positions.) Full-time Part-time/ FI'E(only if unable to Hourly Wage Job Seasonal/Temp. separate FT/PT) Job Retention Hourly Value of (excluding benefits) Creation Job Creation Job Creation Health Insurance less than$7.00 $ $7.00 to$8.99 $ $9.00 to$10.99 $ $11.00to$12.99 $ $13.00 to$14.99 $ $15.00 and higher $ • 32. Has the recipient achieved all goals(see Questions 29,30 and 31)and fulfilled all obligations stipulated in the agreement? (Mark one.) ❑Yes ❑No 2000 Minnesota Business Assistance Form Page 3 of 4 Department of Trade and Economic Development Section 5 Recipients Failing to Fulfill Obligations (Do not complete this section if you completed it on another 2000 MBAF submitted to DTED.) 33. During the period August 1 through December 31, 1999,did your organization have any recipients who failed to report as • required by Minn.Stat. §116J.993 and§1167.994? (Mark one.) Yes(Indicate the name of each recipient failing to report and the value of subsidy or financial assistance awarded to that recipient. Attach additional pages if necessary.) No Name of recipient Type of subsidy or assistance(See Questions 24 and 25.) Value of subsidy or assistance 34. Did your organization have any recipients who failed to achieve any goals or fulfill any other obligations under an agreement signed on or after August 1, 1999,that were required to be fulfilled by the time of this report?(Mark one.) 0 Yes(Complete the remainder of this section.) 0 No(Stop here and submit form to DTED.) 35.-39. Provide the following information for each recipient failing to fulfill goals or any other terms of an agreement that were to be attained by the time of reporting. (Attach additional pages if necessary.) 35. Information on recipient and agreement: Name of recipient in default Type of subsidy or assistance Initial value of subsidy or assistance Street address of recipient City/ZIP code of recipient Outstanding value of subsidy or assistance • 36. Reason(s)for default(Mark all that apply.): D recipient ceased operation D recipient relocated to a different community 0 recipient was unable to fill vacant positions D other(Specify reason.) 37. To date,has the recipient fulfilled its repayment obligation?(Mark one.) 0 Yes D No,recipient has begun to repay the assistance. 0 No,recipient has not begun to repay the assistance. 38. Has the agreement been amended to extend the recipient's deadline for fulfilling its obligations?(Mark one.) O Yes O No 39. Describe the steps being taken to bring recipient into compliance or recoup the subsidy. Return your completed MBAF(s)by April 1, 2000,to: 2000 Minnesota Business Assistance Form Minnesota Department of Trade and Economic Development-AEO 500 Metro Square, 121 East 7t°Place St.Paul,MN 55101-2146 • Or fax to: (651)215-3841 2000 Minnesota Business Assistance Form Page 4 of 4 Department of Trade and Economic Development APPENDIX F • REDEVELOPMENT QUALIFICATIONS FOR THE DISTRICT The property consists of vacant,unused,underused,inappropriately used,or infrequently used railyards,rail storage facilities or excessive or vacated railroad rights-of-way. • • APPENDIX F-I APPENDIX G BUT/FOR QUALIFICATIONS • • • APPENDIX G-1 But For Analysis Current Market Value-Est. 1,402,900 New Market Value-Est. _ 56,000,000• Difference 54,597,100 Present Value of Tax Increment _ 18,933,465 Difference 35,663,635' Value Likely to Occur Without TIF is Less Than: 35,663,635 • • • Ehlers and Associates,Inc. Page 1 !City of Cottage Grove • Memo To: Economic Development Authority Members (gyp p From: Michelle A. Wolfe, Assistant City Administrator cif Date: 08/04/00 Re: Public Hearing: Business Subsidies for Cushman-Wakefield Project Item 4B The EDA should open the Public Hearing related to business subsidies for the Cushman & Wakefield project. Once the Public Hearing is concluded, the EDA should act on the attached resolution approving business subsidies for this project. Attachments • F:\GROUPS\PER_ECON\Economic Development\EDA Memos\2000\August 00 Pub Hear Cush.doc City of Cottage Grove • Memo To: Economic Development Authority Members From: Steven P. Barrett, Management Analyst Date: 08/03/00 Re: Cushman &Wakefield Project— Business Subsidies Attached is a resolution for the EDA to approve business subsidies for the Cushman & Wakefield project. As you know, current plans call for the project to locate in the proposed Tax Increment Financing District 1-11, which will be established by the City Council on August 16, 2000. • Ryan and Michelle will answer all questions related to this Resolution at the EDA meeting. • \\CGrS l\SYS\GROUPS\PER_ECON\Economic Development\EDA Memos\2000\August 00 Cushman Wakefield business subsidies.doc • RESOLUTION NO. 00-XXX RESOLUTION BY THE ECONOMIC DEVELOPMENT AUTHORITY CALLING FOR APPROVING BUSINESS SUBSIDIES WHEREAS, Cushman & Wakefield represents a client interested in relocating to Cottage Grove; and WHEREAS, plans call for the Cushman & Wakefield project to relocate within the proposed Tax Increment Financing District No. 1-11; and WHEREAS, the Cottage Grove City Council plans to hold a public hearing, and proposed adoption, for the establishment of Tax Increment Financing District No. 1-11 on Wednesday, August 16, 2000, and WHEREAS, The Cottage Grove Economic Development Authority and the •• City of Cottage Grove propose awarding business subsidies associated with the proposed Tax Increment Financing District 1-11 for the Cushman & Wakefield project; and WHEREAS, awarding business subsidies associated with the proposed Tax Increment Financing District 1-11 for the Cushman & Wakefield project is consistent with the City of Cottage Grove's Criteria for Awarding Business Subsidies, as adopted by Resolution No. 99-204.1, in accordance with Minnesota Statutes Section 116J.993 — 116J.995, NOW THEREFORE BE IT RESOLVED, the Economic Development Authority of the City of Cottage Grove, County of Washington, State of Minnesota, approves awarding business subsidies associated with the proposed Tax Increment Financing District 1-11 for the Cushman & Wakefield project. Passed this 8th day of August 2000. John D. Denzer, President Economic Development Authority Attest: • Caron M. Stransky, City Clerk Delivered to Bulletin on 7/20/00 for publication on 7/26/00. CITY OF COTTAGE GROVE ECONOMIC DEVELOPMENT AUTHORITY • NOTICE OF PUBLIC HEARING t NOTICE IS HEREBY GIVEN that a public hearing will take place before the Cottage Grove Economic Development Authority to consider a Resolution relating to criteria for awarding business subsidies, in accordance with Minnesota Statutes, Section 116J.993 through 116J.995. NOTICE IS FURTHER GIVEN that said public hearing will take place before the Economic Development Authority on August 8, 2000 at 7:30 AM in the Council • Chamber, Cottage Grove City Hall, 7516 80th Street South, Cottage Grove, Minnesota. The purpose of the hearing is to provide citizens the opportunity to comment on the Resolution. Individual citizens or representatives of organizations are encouraged to submit written comments prior to the hearing. Persons interested in speaking will be heard at this public hearing. Information on this Resolution can be obtained at the Administration Department at the Cottage Grove City Hall. t CITY OF COTTAGE GROVE NOTICE OF PUBLIC 0 . HEARING i ECONOMIC DEVELOPMENT 1 AUTHORITY 1 NOTICE IS HEREBY GIVEN that a public it �H hearing will take place before the Cottage Grove,l1 Economic Development Authority to consider a 'i' Resolution relating to criteria for awarding busi- •11 cess subsidies,in accordance with Minnesota 11 Statures,Section 116J.993 through 116!.945. '11 NOTICE IS FURTHER GIVEN that said pub-11 lic hearing will take place before the Economic err Development Authority on August 8,2000 at .i; 7:30 am.in the Council Chamber,Cottage Grove it City Hall,7516-80th Sueet Swath,Cottage ,ll Grove,Minnesota. ,11 The purpose of the hearing is to provide chi- 11 setts the opportunity to comment on die Resolu- :so tion.Individual citizens or representatives of ./1 organizations are encouraged to submit written1t comments prior the hearing.Persons interested;i m in speaking will be heard a this public haring. i h Information on this Resolution can be ,it i meat obtained at die Administration Departmentthe,'� Cottage Grove City Hall' j1 t1 f (Published in die South Washington County Bul-01 letin Wednesday,July 26,2000.abode-ice ) ;1 I Ii , 1 1►i ill 1 K:1Econornic Developrnent\TIF\TIF 1-11 Business Subsidies Public Hearing Notice.doc III I *City of Cottage Grove • Memo To: Economic Development Authority Members From: Michelle A. Wolfe, Assistant City Administrator (bide Date: 08/04/00 Re: Project Updates Item 4C Attached is the list of active projects. Staff will provide a verbal update at the meeting. Also attached is an update on pavement management and road construction projects in the City. • Attachment • \\CG_FS1\SYS\GROUPS\PER_ECON\Economic Development\EDA Memos\2000\Aug 00 Proj Update.doc ACTIVE LEADS QUERY EDA PACKET 8/3/00 Proposal ID Project Description SF/Acres Needed • ED-00-04 Warehouse/Distribution 140,000 sf/ 18-20 acres ED-00-10 Office/Distribution facility 5-6 acres ED-00-13 Medical Office Building 300,000 sf w/room for expansion ED-00-19 Manufacturing 90,000 sf/ 10 acres ED-00-22 Office Warehouse 45,000- 50,000 sf warehouse, 4,000-5,000 office ED-00-28 Distribution Center 380,000 sf/25-30 acres ED-00-29 Office 60,000 -80,000 sf ED-00-31 Grove Plaza NA ED-00-32 Hotel & Restaurant 70,000 -80,000 sf ED-00-33 Manufacturing 15,000 sf/2.2 acres ED-00-34 Stamping facility 155,000 sf/30 acres ED-00-35 Post Office 33,659 sf/5 acres ED-00-37 Manufacturing 400- 500,000 sf/26-33 acres ED-00-38 Manufacturing 85,000/5 acres ED-00-40 Light Manufacturing 100,000 sf/5-10 acres ED-00-43 'Distribution Facility 80-90,000 sf/11-15 acres • ED-00-44 Manufacturing 75,000- 100,000/4.6-6.6 acres ED-00-46 Commercial Availability ED-00-47 Manufacturing 60,000 initially to 150,000 sf ED-00-50 Engineering facility 10,000 sf/1-2 acres ED-00-51 Manufacturing 20,000-60,000 sf/2-5 acres ED-00-53 Warehouse 50-100,000 sf/4-7 acres ED-00-54 Financial Institution ED-00-55 Retail Inquiry ED-00-56 Cable/Fiber Optic Co. 50- 100,000 sf/4-8 acres ED-00-57 Distribution Center 2-3 acres ED-00-58 Distribution Center 20-30,000 sf/2-3 acres ED-00-61 Retail/Mixed Use • Page 1 • CITY OF COTTAGE GROVE To: Economic Development Authority Members From: Dan King,Management Analyst Date: August 4,2000 Re: Update on Street Reconstruction and 2000 Pavement Management Street Reconstruction Ideal Avenue is complete up to the base course. Seeding and landscaping is in progress, and the pedestrian path and fencing are now complete. The final wear course will be applied on the street in conjunction with the wear course on 100th and 110th once those streets are ready for this final course. • On 100th and 110th Ave.'s, road construction will begin once NSP has completed relocating overhead power lines, and the necessary sewer and water lines are in place; probably around August 14-18. They will begin with rough grading both Avenues', installing curb and gutter, and completing the wear course by early September. Jamaica Avenue will be reclaimed from 95th St. to East Pt. Douglas Road, and this also will be in conjunction with 100th and 110th Avenues. Work on Inwood Ave. and East Point Douglas Road is complete, and the landscaping and cleanup are underway. 2000 Pavement Management Work on the 2000 Pavement Management area has begun in the Highlands area of the city. According to Tom Thompson of Bonestroo, Anderlik & Associates Engineering, road replacement is complete, and crews will now finish the landscaping and cleanup. This should be complete before the end of the month. For more information, please contact the Cottage Grove Public Works Dept. at 651-458-2806; or Tom Thompson of Bonestroo, Anderlik & Associates at 651- 604-4911. City of Cottage Grove • Memo To: Economic Development Authority Members f From: Michelle A. Wolfe, Assistant City Administrator ��M'W Date: 08/04/00 Re: By-Laws and Election of Officers Item 4D I have reviewed the EDA By-Laws and Enabling Resolution with Ron Batty at Kennedy and Graven. There are several changes that he recommended, including a re-write of Article 14. Due to schedule conflicts, we have not been able to complete those • changes. However, I hope to have a new draft ready for the next meeting. It will include the original version with proposed changes shown in strikeout and underline. We can proceed with an election of officers once the new By-Laws have been approved. This item should be tabled to the September meeting. \\CG_FS1\SYS\GROUPS\PER_ECON\Economic Development\EDA Memos\2000\August 00 ByLaws.doc City of Cottage Grove • Memo To: Economic Development Authority Members Ade From: Michelle A. Wolfe Assistant Ci Administrator /i Date: 08/04/00 Re: Economic Development 2001 Budgets Item 4E As requested at the last EDA meeting, staff has invited Finance Director Liz Johnson to attend the meeting for a discussion of the Economic Development budgets, revenue sources, and related topics. We have researched whether or not there is a statutory need for having two separate • budgets. There is no statutory requirement that we are aware of. Therefore, we will be ready to discuss the possibility of combining the EDA and EDF budgets into one overall budget. There were no major changes made to the two budgets since your review of them last month. City Council will be reviewing the City Administrator's proposed budget at a workshop in August. Attachment III \\CG_FS1\SYS\GROUPS\PER_ECON\Economic Development\EDA Memos\2000\Aug 00 Budget.doc ity of Cottage Grove S Memo To: Economic Development Authority Members From: Steven P. Barrett, Management Analyst Date: 08/03/00 Re: Phase I Study— Industrial Park Item 4F Braun Intertec submitted a report on July 21. However, due to a misunderstanding between the project manager and their supervisor, the report only covered property north of 95th Street. They were informed of this oversight, and are 5 now due to submit a new report any time. Once the new report is submitted, EDA members will receive a summary of the findings. This could occur as early as Tuesday's meeting. • F:\GROUPS\PER_ECON\Economic Development\EDA Memos\2000\August 00 Phase I study.doc -City of Cottage Grove • Memo To: Economic Development Authority Members/ From: Steven P. Barrett, Management Analyst • Date: 08/03/00 Re: EDA Annual Report Item 46- The GThe EDA Annual Report will be sent to the Graphic Design, Inc. for printing on Friday, August 3. The printers will take 8-10 business days to produce the copies. As you know, we will be printing a general marketing document and an insert. Each year we will simply update the insert. A color draft will be available for your review at the meeting on Tuesday. • F:\GROUPS\PER_ECON\Economic Development\EDA Memos\2000\August 00 Annual Report.doc ,City of Cottage Grove Memo To: Economic Development Authority Members From: Steven P. Barrett, Management Analyst Date: 08/03/00 Re: 2000 EDA Golf Outing Item 4 f+ Here is an update on the 5th Annual EDA Golf Outing: • Close to 80 players have registered so far, with more registrations coming in each day. Our goal is to have a 25% increase in participants. This sets our goal at 106 paid entrants. • • We have sold 8 hole sponsorships so far. • Catering by Joyce will once again handle the catering. The menu includes chicken, ribs, cole slaw, etc. • One of our gifts — a travel mug with the EDA logo — has arrived. I will provide samples at the meeting on Tuesday. The second gift, consisting of tees, ball markers, etc. will arrive by August 10. • Our registration materials included a site selection survey for each person on the mailing list. We will have the results of this survey at the September EDA meeting. • REMINDER — if you plan to play in this event, or attend the dinner following the golf, you must RSVP to Steve Barrett at (651) 458-2883. F:\GROUPS\PER_ECON\Economic Development\EDA Memos\2000\August 00 EDA Golf Outing.doc 4T • MEMORANDUM TO: Economic Development Authority FROM: Kim Lindquist, Community Development Director DATE: August 2, 2000 RE: Development North and West of Menards Introduction The Planning Commission, at their July 24, 2000 meeting, reviewed and ultimately tabled an application from 5th Street Ventures, LLC. The application is for a mixed-use, residential and commercial, project located north and west of Menards. The site currently is zoned and guided for commercial exclusively, and therefore rezoning and comprehensive guide plan amendment are required. The application also includes a site plan approval and preliminary plat approval. The project proposes 132 townhouse units on 19.02 acres of the site. The remaining 9.82 • acres are dedicated to four commercial lots. The applicant is intending to construct two of the five buildings proposed in the first phase along with commencement of the residential compo- nent of the project. Planning Discussion During the Planning Commission discussion, there were two primary issues raised, which were listed as reasons for continuance of the application. First, several members were concerned about the traffic impacts of the development upon both East Point Douglas Road, along the curve, and at the signal lights at Jamaica and the Cub entrance. The applicant will be con- ducting a traffic study to assess the impacts of the proposal on the existing system. If traffic generation is of some concern, the shift to residential will be beneficial. I believe that traffic generation estimates for multi-family units are less than that for commercial businesses, par- ticularly during the PM peak hours. Staff has also requested that the traffic consultant review proposed access points and recommend any modifications to the roadway, such as turn lanes, that may be necessary to improve safety. The City is also simultaneously conducting a traffic study to review the current signal system and road geometrics in the area. The other issue raised by some Planning Commission members was the concern over land lost for commercial development. One Commissioner expressed an interest in having at least 50 percent of the subject property dedicated for commercial development and reducing the residential component of the project. Residents who spoke during the public hearing, while • voicing some concern over particular details of the plan, were supportive of introducing resi- dential into the area, rather than commercial. This is particularly true in the northeast area of the site, which is adjacent to two single-family neighborhoods. Some commission members Economic Development Authority Development North and West of Menards August 2, 2000 Page 2 • noted that multi-family residential is a typical buffer between commercial and low-density resi- dential land uses. Planning staff is also supportive of the plan concept in recognition of the configuration of the parcel. The placement of Menards is a detriment to other commercial op- portunities, from a commercial perspective, because it does not afford good visibility. There is some concern that a less desirable commercial establishment, one that may not need as much visibility, may locate in close proximity to the residences. Examples of uses allowed by right or conditional use permit within the B-3 zoning district include automotive, trailer, recreation vehi- cles, boats/marine, and farm implement establishments for display, hire, service, and sales with or without an open sales lot or open storage when incidental to the principal use. Adult uses are also permitted within the B-3 district. The Planning staff report addressed a variety of plan modifications that would be requested should the Planning Commission wish to recommend approval of the applications. These can all be addressed without substantially changing the general layout. EDA Review Since the EDA is involved in the attraction and retention of businesses within the community and because of the role played in the last comprehensive planning process, staff is requesting your comments regarding the proposal. Specifically, staff would like the EDA to comment upon the mixed-use nature of the project and the amount of property dedicated to each of the • proposed land uses. This information will be forwarded to the Planning Commission for their continued deliberations. • STAFF REPORT CASE: CP00-045, ZA00-046, PP00-047, SP00-048 • ITEM: 6.2 PUBLIC MEETING DATE: 7/24/00 TENTATIVE COUNCIL REVIEW DATE: 8/16/00 APPLICATION APPLICANT: 5th Street Ventures, LLC REQUEST: A comprehensive plan amendment to allow a mixed-use development; a zoning amendment to change the zoning from B-3, General Business, to PUD, Planned Unit Development; a preliminary plat for 132 residential units and 4 commercial lots; and a site plan review. SITE DATA LOCATION: Vacant land north and west of Menard's ZONING: B-3, General Business OCONTIGUOUS LAND USE: NORTH: Residential EAST: Residential SOUTH: Highway 61 WEST: Commercial SIZE: 28.84 acres DENSITY: 6.94 units per acre RECOMMENDATION Approval, subject to the conditions stipulated in this staff report. • COTTAGE GROVE PLANNING DIVISION F:\GROUPS\PLANNING\20001Planning Cases\045CP Scharmer Site-jul24\045CP Scharmer Site SR cover ju124.doc CASE NUMBERR(S) GPD0-045, ZADtl-046, lFP0O-047, SPOO-048 APPLICANT 5th Street Ventures,L ,, ; PROPOSED REQUEST{S) A mprehersive plan amendment to•allow a m case develops ment; a zoning amendment€o change the zoning from B-3, General Business, €o PUD • Planned tUnit Development,a preliminaryplat for 136 residential units arnd 4 commercial lots, s and a site plan view , LOCATION OF REQUUEST Vacant land north and west t f Mernard's _ 4. .A.1.� A v ..� w` �A �► ��D,.,.� "� �_\ hA� r © �A� v�� ^� 4i. Sir .1:n. 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Mr111111111f1M1IFIRREI E= �� • ,.a.o., ..-.1i gli 1.� c,. ... ,.,* VIC:1 rmrA ,i Grw' ©= . • AQ- �"".1.EE-Val 4/1!. � - do, s'... s.-..--...:. -, , .. t:\::. :::::*:::.*:.:::::::.:.::::::::::::::::.:.:.:.:::: = . ` ... 'Cbl � Q �'`��.�' ' • tpleir..,,_1,C, `I s. , ,!.._ '---•-•-:.;:,.,_•:-,".. .1644, •:•:::::::::::::::•:•:•:•:•• ••-::::::::.:::::E1,nfaiji.., =„tc.4.404 .,...70;ze",..fr.s,,,„.Azumi , NA. 1 U 7� iti Ci d•s. © a 3 c� AI �l I7 • • J © i • © 0 4©RAE; ) .M I w.c r/ . Z NW Ell • $ WSq.»� ,; / . w as 9 WN .a ` / I t • N \ • 3 . .� I \- - _ O Planning Staff Report Cases CPOO-045, ZA00-047, PPOO-047, SPOO-048 July 24, 2000 Proposal The applicant, 5th Street Venture, LLC, is proposing to develop a mixed-use project on the ir- regularly-shaped remnant of land behind and adjacent to Menards. The site is currently guided and zoned for commercial use. The applicant is requesting that the Future Land Use map of the City's Comprehensive Plan be amended for purposes of reguiding the property to mixed use and a rezoning to Planned Unit Development (PUD) to permit a combination of residential and commercial development. Four commercial parcels would be created along East Point Douglas Road with the remaining 19.02 acres devoted to development of 132 townhouse units. Along with applications for amending the Comprehensive Plan and rezoning the property, the applicant has requested preliminary plat approval and site plan approval. The proposed site plan is Exhibit A. The applicant's narrative is Exhibit B. Background On September 20, 1995, the City Council adopted a resolution approving a conditional use • permit for a home improvement retail store and outdoor storage, and a site plan review for Menards. The Council also adopted a resolution approving two variances for the project, one for the amount of on-site parking and the other for exterior signage. In December 1999, the City Council approved the draft Comprehensive Plan and requested staff to forward the Plan to the Metropolitan Council for review and approval. In the Plan, the subject property continued to be designated for commercial use. However, it was recognized that some residential land uses may be acceptable depending upon site design and proposed uses for the site. Planning Considerations Project Design The 28.84-acre site is proposed to develop as both multi-family townhouse project and com- mercial uses. Four lots, totaling 9.82 acres, are dedicated toward commercial development with the remaining 19.02 acres for residential. All commercial parcels front along East Point Douglas Road, with the residential gaining access from a new public cul-de-sac that permits access to the interior of the proposed residential site. Initial submittals by the applicant were not supported by staff due to the amount of hard sur- face proposed, predominately in the residential portion of the site. The applicant has since modified the plans, which are reflected in the current submittal. Staffs main interest was pro- • viding additional green space within the residential areas and removing excessive paving. The Planning Staff Report—Cases CP00-045,ZA00-046, PP00-047, SP00-048 July 24, 2000 Page 2 amount of paving is always a point of discussion with the type of townhouse project proposed. The applicant consolidated several structures; thereby reducing needed driveways and in- creasing the size of open areas. Through the consolidation, the applicant was able to provide several small open space/activity areas for the multi-family residents. In the east, between buildings 10 and 11, there is a small picnic area for residents. Center to the residential devel- opment, between buildings 6, 7, and 14, there is a tot lot, and there is another open area, with gazebo, between buildings 15 and 16, north of the proposed pond. Along with the designated open space areas, the applicant was able to provide greater set- backs to the existing single family neighborhoods than what is required by the PUD ordinance or the R-5, Medium Density Residential zoning district. The PUD requires a 30-foot setback from all exterior property lines of the PUD; the R-5 zoning requires that a 25-foot setback be maintained between attached dwellings and associated parking and single family housing. Parking and buildings in the northeast maintain a 50-foot setback, whereas the central build- ings have a 110-foot setback with parking 45 feet to 58 feet away from the north property line. Staff would like to explore the idea of slightly reducing the open space areas interior to the site and shifting the development in the northeast, slightly south. Staff is interested in increasing the setback to the north approximately 10 feet, which would not dramatically compromise the usability of the open space recreation areas. In respect to the single-family neighborhood to the east of the project site, the applicant has provided ample separation due to the presence of the NSP and Northern Natural Gas ease- ment. In this area, buildings and parking vary from 80 to 85 feet away from the eastern prop- erty line. The proposed trail and landscaping will further mitigate impacts of the proposed development. The applicant must receive approval for the landscape plan from NSP and Northern Natural Gas Pipeline Company. The proposed landscaping and buffering is an important component of the plan and must be adhered to, to the greatest extent possible. The commercial development is located in the obvious areas for best visibility, along the frontage road. All site designs for the commercial entities appear adequate from circulation, parking, and layout perspectives. Presently, the applicant is proposing to develop two of the four commercial sites, the two northern parcels. The most northern is expected to be some type of retail warehouse type use. Lot 1, Block 2 is most likely an office use, whereby two of- fice buildings are presently proposed. Users for Lots 2 and 3, Block 2 have not been identified, although it appears that Lot 2 could accommodate a restaurant user and Lot 3 could be re- tail/service use. One of the primary concerns staff conveyed to the applicant was the strong City interest in development of the commercial uses on the site. Any residential developer for the site was told that the City would not consider reguiding the Plan and rezoning the site un- less 50 percent of the commercial property was developed. The applicant is aware of this in- terest and has indicated he will build "spec" buildings on Lot 1, Block 1 and Lot 1, Block 2. To ensure the commercial uses do occur on the site, staff is recommending a condition of ap- proval that requires the two commercial uses be substantially complete before any building permits are issued for the residential portion of the project. Staff is recommending the following language, "No building permits will be issued for construction of any residential building in the development until final certificates of occupancy have been issued for at least two of the four • commercial sites, up to three buildings, in the development." Planning Staff Report—Cases CP00-045,ZA00-046, PP00-047, SP00-048 July 24, 2000 Page 3 • Rezoning The property is currently zoned B-3 and the applicant is requesting rezoning to Planned Unit Development (PUD) to permit a mixed-use development on the site. Obviously, if the City were to entertain some residential development on the property, some type of rezoning must take place. Staff can support the rezoning change because we believe it results in a better project for the site and for the surrounding existing neighborhoods. Although the City goals are to in- crease the commercial services available to residents, staff is concerned about the type of business that would be attracted to the area behind Menards. From a commercial perspective, this area is hidden; therefore it doesn't afford the visibility to customers that most commercial entities crave. Staffs concern is that the zoning may encourage commercial users that would not be complementary to the existing single family neighborhood. For example, automotive, trailer, recreational vehicles, boats/marine, and farm implement establishments for display, hire, service and sales conducted entirely within a building is a permitted use. Those activities conducted outside of the building are permitted by conditional use. Open sales lots or open storage when incidental to a principal use, such as a contractors yard be also allowed with a conditional use permit. Adult uses are permitted within the B-3 district. Unfortunately, the de- sign and location of the Menards development has left a residual commercial strip that may only attract less desirable businesses, when considering the adjoining single family neighbor- hood. The site would have been more attractive, in total, for commercial development if the parcel had been approached more holistically and a small commercial hub created. The above potential uses illustrate some of the most unattractive uses allowed when consid- • ering the existing neighborhood. Of course, the ordinance permits many uses that would be more complementary to the residential properties, however, under the B-3 zoning there is not a guarantee of the use. If a business approached the City for approval and met all the applicable performance standards, they would be approved. Similarly, if a business approached the City for a conditional use permit and met the standards listed in the ordinance for granting of the permit, the City would be obligated to grant the permit. The rezoning to PUD permits the City to somewhat regulate the proposed uses on the remaining portion of the site dedicated for com- mercial. Staff has discussed with the City Attorney the idea of restricting outside storage, display, or sales on the site. The Attorney feels it is reasonable for the City to restrict the commercial uses from having outside activities in light of the trade-off of having a substantial portion of the site available for residential development. This restriction is a recommended condition of approval. In staffs opinion, the two greatest benefits to the City created by the PUD proposal is, one, the introduction of a more complementary use into an existing residential neighborhood than what could occur under the current zoning. The second is the ability to restrict the remaining commercial enterprises so that they, too, may co-exist more favorably with the existing single- family neighborhood and the newly created multi-family neighborhood. A rezoning map is attached as Exhibit C. Comprehensive Guide Plan The City in its recent Comprehensive Plan draft continued to guide the entire site for corn- ", mercial land uses. In a November 12, 1999 memo to the Council regarding the Comprehensive Plan, staff noted that this parcel would remain designated for commercial in the draft plan. Planning Staff Report—Cases CP00-045,ZA00-046, PP00-047, SP00-048 July 24, 2000 Page 4 However, it was recognized that the site might be good for multi-family housing, particularly • senior housing, due to its close proximity to a commercial area and Highway 10/61. In that memo, staff noted that site would remain designated for commercial to provide the greatest control over the future uses of the site and to ensure some commercial development occurred on the property. Staff, being supportive of the current proposal, is recommending approval of reguiding the property to mixed use. However, should the Commission and Council not support the current PUD request, staff does not recommend reguiding of the site. A land use map is Exhibit D. Preliminary Plat The applicant is proposing to plat five separate lots of record. Four of the lots are dedicated for commercial development and may or may not have different ownership. The residential devel- opment is designated for one parcel and unit ownership will be as a condominium. An outlot should be added to the plat for the cul-de-sac landscape island within the public street. This island should be owned and maintained by the homeowners association for the townhouse project. The applicant should also be dedicating necessary easements over public water, sanitary sewer, and storm sewer facilities. This includes a drainage easement over the pro- posed stormwater holding pond. Exhibit E is the proposed preliminary plat and Exhibit F the requested easement map. Site Plan Review As part of the site plan review, staff is reviewing the entire residential development and two of the four commercial pads. The remaining two commercial pads, the two most southern, will • need to come before the City for site plan approval prior to issuance of a building permit. The following information discusses the ordinance site plan issues and how the application ad- dresses ordinance regulations. Property Characteristics The property is irregularly shaped, in part because of the placement of the Menards develop- ment. The site has frontage along East Point Douglas Road and also is adjacent to single- family neighborhoods on the north and east. A long three-acre strip of land, the NSP/Northem Natural Gas easement located east of Menards is included in the site. The property is generally devoid of significant vegetation with the exception of two windrows of coniferous trees. These have traditionally been recognized as having the some historic signifi- cance. However, given their location and age, it is difficult to maintain them and develop the site. A portion of the windrow was removed when Menards developed. The remainder of the site is farmed or left fallow. The site is extremely flat without topographic relief. Ordinance Criteria Utilities The development will combine the use of private and public water and sanitary sewer systems. In general, the water and sewer located within the public cul-de-sac and looped within the de- velopment will be public. Additional public water mains will be required down some of the pri- • vate streets, within the townhouse portion of the site, for fire access reasons. Hydrants will be Planning Staff Report—Cases CP00-045,ZA00-046, PP00-047, SP00-048 July 24, 2000 Page 5 • located at the most eastern end of the site, in the most north and south private drives. Public works has requested that the water main looping be revised to go around the southern 10-unit building. A portion of the sanitary sewer will also be removed as compared to the original plan. Easements must be dedicated over the portions of the system that will be public. Because of the fire hydrants necessary for fire protection, some of the mains, while serving only a few residents, will be public. Individual public services to the units are similar to those proposed under Orrin Thompson's Lodges of Pine Summit project in the West Draw. The applicant is proposing that one sewer and one water service be brought into the building with individual lines branching off to each unit, interior of the building. Because of customer service issues, the City did not initially sup- port this proposal. However, the applicant, like the Lodges of Pine Summit project, will set up the Homeowners Association as the customer for utility purposes. In other words, the billing will be directly to the homeowners association and the association will include the utility costs within their monthly dues structure. The arrangement must be shown within the covenants for the project that will be recorded with the final plat and reviewed by staff prior to recording. Parkland Dedication and Trails The applicant is not proposing to dedicate any land to the City in lieu of parkland dedication fees. The property is designated for a small mini-park (approximately 1 to 3 acres) to be lo- cated in the northeast corner of the site. However, when the Parks Commission reviewed the proposal, they decided not to accept any land. Their feeling was that the multi-family portion of • the site made provisions for some recreational features and that money for park development was a higher priority. Additionally, they clearly stated they would not take the NSP powerline easement for parkland. This is a slight departure over previous policy. Staff concurs with the Commission's approach to the NSP corridor since the property is too encumbered to be build- able and therefore should not be used as a credit against parkland dedication requirements. However, the applicant is proposing to construct a trail within the easement that will be public. A public trail easement should be dedicated to the City. The trail serves two purposes. One is from a recreational/transportation aspect. The trail will provide a connection from 91st Street to the frontage road. A small outlot exists between 8999 and 9013 — 91st Street for trail construc- tion and that connection should be made as a part of this project. The secondary benefit of the trail is that it can be used as fire access for the townhomes located in the east. Fire access for buildings such as those proposed are usually a point of discussion between the City and the developer. The trick is to balance fire protection with an interest in reducing hard surfacing and increasing green space when possible. Planning staff was reluctant to "loop" the road around the units to provide better fire access. The Fire Chief is agreeable to using the trail, so long as the trail is in close proximity to the private drives, within 10 feet, and that the trail is maintained year round. In the north, "hammer head" turn-arounds have been added again for fire/safety reasons. The landscape plan indicates that small juniper plantings will be installed at the ends of some of the private drives. Because the landscaping would impair the ability of the fire department to • access the trail, they should be omitted. Likewise, the designated parking on these private drives should be removed and the trail moved closer to the driveway ends. Planning Staff Report—Cases CP00-045,ZA00-046, PP00-047, SP00-048 July 24, 2000 Page 6 The subdivision ordinance dictates the park and recreation fees associated with this project. • Each of the 132 units will pay both a park dedication fee and a recreation facilities fee. The park fees for the townhouse development is $99,000 (132 x $750.00). The recreation fees for the townhomes is $19,800. However, because the applicant will be constructing the entire eastern trail, including the connection to 91st Street, staff is recommending one-half or$9,900 of the recreation fee be waived. Park dedication fees for commercial property are by ordinance set at 4 percent of the fair market value of the land at the time of subdivision approval. The ap- plicant should provide information on the land valuation of the site. The applicant is proposing a public sidewalk along the new public cul-de-sac. Staff does not see a project need for this sidewalk segment and it can be deleted. However, consistent with City policy to have sidewalks along the commercial areas, a sidewalk should be installed along East Point Douglas Road. This would be at the developer's expense. Exhibit G is a trail map and Exhibit H is an excerpt from the Parks Commission's minutes discussing the project. Traffic The functional classification for East Point Douglas Road is a minor arterial street that provides supplementary connections between principal arterials, other minor arterials, and collector streets. A portion of East Point Douglas Road, between the VFW and the delivery access drive for Target, is four lanes wide. At the Target delivery access drive, East Point Douglas Road then tapers to a three-lane road all the way to the traffic signal light by Video Update. There have been concerns expressed about the impact of additional traffic on the frontage • road, especially as it relates to the curve near the Cub entrance. The Public Safety Commis- sion has held general discussions regarding this issue and staff has discussed the topic with the City Engineer. There was no particular recommendation from those discussions other than that as development occurs, the traffic issues related to the roadway should be reviewed. Un- fortunately, it does not appear that there is any easy solution to the problem. The curve is diffi- cult from a sight distance perspective and cars move quickly around the curve. However, due to the built nature of the area, the ability to realign the road is limited, unless additional land is obtained. However, it is important that the City understand the ramifications of this project upon the current traffic operations. A key question would be a comparison of the proposed use, residential and commercial versus an all commercial project. Fortunately, this is one of the last vacant parcels in the immediate area. The next large tract designated for future com- mercial development is the outdoor movie site, which is much closer to County Road 19. The traffic consultant would be hired by the City to review the project and the immediate environs with the cost being borne by the applicant. Staff is recommending that the study be completed prior to the project being reviewed by the City Council. As previously stated, existing site lines on the curve by Target could be improved somewhat with pruning of the existing landscaping. This should be completed by the applicant. Several years ago, some landscaping revisions were already completed by the eastern entrance to Target. Planning Staff Report—Cases CP00-045,ZA00-046, PP00-047, SP00-048 July 24, 2000 Page 7 • Access Staff has reviewed access issues associated with development of the property. There were several areas of concern centering on the commercial driveway locations proposed. Going north to south, staff had the greatest concern over the most northern curbcut. This location is along the curve of East Point Douglas Road. After reviewing the location out on the site, there are not sight distance problems created while exiting the site, the only slight concern is the sight distance for vehicles turning left into the property. Southbound on East Point Douglas has two lanes so that vehicles can continue south uninhibited, however, care should be taken to increase visibility of the left-bound vehicles. It would be helpful if some of the vegetation near the Target shopping center was trimmed back around the curve. Staff is recommending the curbcut be shifted south to align with the curbcut to the west. Staff is also recommending that Lots 1 and 2, Block 2 combine their driveways. The combined drive should be located across from the existing truck access for Target. This is in the general vicinity of the proposed Lot 1 drive. Some changes to interior circulation in this area should be done so that clients accessing Lot 2 do not have to drive past the front of the office building on Lot 1. There is only one curbcut proposed for Lot 3, however, staff would entertain the ability of a shared access for Lots 3 and 4. Since the applicant does not have a user identified for either of these two parcels, it would be prudent to keep options open. Because staff is requesting a traffic study be conducted for this site, the consultant should also review the access proposal and make and recommendations. The City's recommended access proposal is shown in Exhibit I. • The City engineer expressed concern about the configuration of the public cul-de-sac because of the "dropped circle" shape. They indicated it might function more like a traffic circle than a cul-de-sac, which would cause confusion. It is recommended that the cul-de-sac be tipped north although it can still be skewed to the south. This would allow a greater setback between the project and the single-family development to the north. The public road will be built to City standards as well as the private loop road surrounding buildings 6, 7, and 14. Both of these roads will be 34 feet back of curb to back of curb. The other private roads, which spur from the loop road, will be decreased in size. For the most part, these drives serve a small number of residents and do not need to be the same size as a pub- lic road. The applicant is proposing these drive aisles be 24 feet in width, which is consistent with other townhouse projects in the community. Drainage Drainage from the site generally flows toward the ponding area located on the site. Engi- neering has reviewed the ponding area and it appears to meet water quality and rate control concerns. Water quality and quantity ponding on this site is required because of downstream concerns expressed by 3M. The proposed pond addresses some of the expressed concerns. The City, under the 1996 Surface Water Management Plan, had intended that a significant amount of drainage flow into the ravine system within 3M property. The drainage flowed out of the DNR protected wetland, near Glendenning Road. Drainage into the wetland comes from • the industrial park, which is fed from the Hamlet Park wetland and ultimately the West Draw, and from the north, from a pipe located east of the subject property. Because this northern Planning Staff Report—Cases CP00-045, ZA00-046, PP00-047, SP00-048 July 24, 2000 Page 8 system, the City's central draw, was primarily installed before water quality regulations were in place, any addition of water quality ponding within the watershed is important. Also, due to rate control concerns, any water quantity ponds within this area are also of benefit. There are some minor issues of note regarding the design of the pond and site drainage. A 10- foot maintenance bench should be installed two feet above the normal water level for ease of access. A designated access route must be provided to the pond. The proposed pipe flared ends entering the pond should not be located next to the outlet and the number should be limited. Additionally, Engineering has requested that all emergency overflow routes and elevations be labeled. Portions of the storm sewer are considered public due to the regional nature of their use. Easements are required over some of the piping and the pond itself. Final design of the storm sewer system will occur during preparation of plans and specifications for the project. Grading The existing site is extremely flat with an average constant contour of 808 feet. The proposed grading involves excavation of the pond site, the creation of landscaping berms, the cutting of roads, and the establishment of building pad sites. The proposed elevations range from a low of 790 feet in the ponding area to a high of 818-foot elevation on the hill in the northeast cor- ner. The height of the proposed undulating perimeter berming ranges from 810 to 814 feet. In order to increase required screening, the average height of the perimeter berms should be increased by two feet. Erosion control details were provided on the proposed grading plan. These details shall be followed accordingly, as erosion control practices are enforced during all • construction projects within Cottage Grove. No grading activity will be allowed between 8:00 p.m. to 7:00 a.m. and on Sundays due to the close proximity to existing residential homes. Landscaping The proposed landscaping exceeds the minimum amounts of required vegetation for all cate- gories as required by the landscaping ordinance. Due to screening and buffering requirements, the balance of coniferous trees on the site should be higher. More coniferous trees should be placed between the proposed commercial and existing and future residential uses. Some should be installed where ornamental trees are proposed and the plantings should be stag- gered to provide more of a screen. This will allow for adequate year round screening. A tree preservation/mitigation plan for the existing trees on the site was not included. The miti- gation vegetation required for tree loss (the windrows) must be added to the site in addition to the standard landscaping requirements. Staff is recommending that the majority of this addi- tional landscaping be coniferous landscaping. The plan details the residential planting areas as well as the commercial areas. A variety of Minnesota grown plants are to be utilized, including native grasses. The native grasses are proposed to be placed in clusters along the new rec- reational trailway. This is allowed by ordinance. As required by ordinance, a letter of credit shall be required in the amount of 150 percent of the landscaping estimate. This financial guarantee shall be held for one year from the date of completion of the specific landscaping. The financial guarantee shall be required to correspond with each specific phase of the project. • Although the design of the landscaping plan is well placed, there are some minor changes that Planning Staff Report—Cases CP00-045,ZA00-046, PP00-047, SP00-048 July 24, 2000 Page 9 will be required. The applicant shall coordinate with staff and submit a revised landscaping plan prior to the issuance of a building permit. The proposed landscaping plan is attached as Exhibit J. Some of the identified changes that will be required are listed below: • Additional coniferous trees and bushes shall be planted on the site. • Underground sprinklers shall be detailed and installed in all landscaped areas. • All private access drives that abut the single-family areas shall have a concentration of evergreen plantings that will sufficiently screen vehicle lighting. • The designated pond access bench shall not be blocked by vegetation. • The emergency access connections to the recreational trail shall not be blocked by vegetation. • The width of the linear landscape island on commercial Lot 2, Block 1 shall be in- creased to a minimum of 10 feet. • Additional building perimeter landscaping is required in the front of the commercial building on Lot 1, Block 1. • A tree preservation plan shall be submitted for the existing trees that are proposed to be removed from the site. The required mitigation plantings shall be included in the revised landscaping plan. • The pond area shall be plated with grasses that are tolerant to periodic inundations with water. • All trash enclosure areas on the commercial sites shall be screened. iArchitecture The proposed residential building facades are similar in design to the units located in the Bright Keys and Pine Glen developments. A variety of brick, vinyl siding and decorative windows are utilized in the exterior finish of the residential units. An elevation detail of a residential unit is attached as exhibit K. The commercial building elevation details identify a combination of brick, concrete tile metal flashing and tinted windows. Brick façade arches or false colonnades are proposed over the joint entrances to each of the tenant bays in the warehouse/showroom building and the office building. The proposed building exteriors meet the City's commercial architectural require- ments. Additional concrete tile detailing is lacking over the garage doors on the rear elevation of the office/warehouse. Revisions to the elevation shall be made prior to the submittal of a building permit application. Roof top drainage shall not be directed onto or across sidewalks. Trash enclosures on the site need to conform to City ordinance criteria Section 28-39, which requires that they be enclosed in approved enclosures. All rooftop mechanical equipment shall be screened with approved materials. All required architectural revisions to the site shall be made prior to the submittal of a building permit application. Exhibits L and M detail the pro- posed building elevations. Samples of the exterior building materials for the project shall be submitted to the Planning Division for review and approval. Conclusion • • There are three options available to the Planning Commission and City Council for disposition of the request: Planning Staff Report—Cases CP00-045,ZA00-046, PP00-047, SP00-048 July 24, 2000 Page 10 Approve the request. Staff believes the applicant is proposing a reasonable development • alternative to the development that would be allowed under the existing land use plan and zoning. The plan is found to be compatible with the existing single-family neighborhoods and may be considered an improvement over the other uses that could occur on the site. The ap- plicant has addressed many of the concerns previously stated by staff and other issues can be accommodated by plan revisions or providing additional information. Continue the request. The applicant is proposing a reasonable development alternative to the development that would be allowed under the existing land use plan and zoning. However, there are too many issues unresolved under the current application and additional information is necessary. Continuance would imply general support for modifying the land use and zoning to permit some type of a mixed use project on the site, but issues such as traffic, access, land- scaping, and commercial user information should be made available before the Commission makes a decision. Deny the request. The proposed mixed use is not a reasonable land use for the site. The Commission would prefer maintaining a commercial designation over the entire site and waiting until a new user approaches the City. Recommendation Staff recommends approval of the comprehensive plan amendment to allow a mixed use de- • velopment; a zoning amendment to change the zoning from B-3, General Business, to PUD, Planned Unit Development; a preliminary plat for 132 residential units and 4 commercial lots; and a site plan review, subject to the conditions listed below: • 1. No building permits will be issued for construction of any residential building in the devel- opment until final certificates of occupancy have been issued for at least two of the four commercial sites in the development. 2. Exterior storage, display, and sales of materials and/or merchandise for the four commercial parcels is prohibited. 3. The landscape island in the center of the proposed cul-de-sac shall be shown on the final plat as an outlot and the Homeowner's Association must retain ownership and maintenance responsibilities of this outlot. 4. A site plan review and conditional use permit (if required by City Ordinances) must be filed with the City for review and approval for Lots 2 and 3, Block 2 prior to issuance of building permits for those sites. Permitted and conditional uses for the commercial sites will be based upon the B-2, Retail Business, zoning district permitted and conditional uses. 5. The applicant shall modify the landscape plan and irrigation plan to address concerns noted in the staff report prior to issuance of a building permit. A tree preservation and II mitigation plan must be incorporated into the final landscape detailing. The applicant must ' Planning Staff Report—Cases CP00-045, ZA00-046, PP00-047, SP00-048 July 24, 2000 Page 11 • submit a letter of credit for 150 percent of the landscape cost. This financial guarantee shall be held for one year from the date of completion of the landscaping. 6. A traffic study must be conducted addressing access and traffic interior to the site and along East Point Douglas Road prior to review by the City Council. The applicant will pay the cost of the traffic study which will be contracted by the City. 7. The developer is responsible in the cost of constructing a 10-foot wide bituminous trail along the east side of the residential phase and a six-foot wide concrete sidewalk along the commercial parcels fronting along East Point Douglas Road. Construction of the trail will occur prior issuance of a certificate of occupancy for the ninth building in the residential development. Sidewalk construction will occur prior to issuance a certificate of occupancy on the second commercial property designated for development. 8. The Homeowners Association is responsible for maintaining the 10-foot wide trail located along the east side of the project site and removing all debris and snow from it. This trail is designed as an emergency route. 9. Designated parking spaces at the east end of the private access drive located north of Building 9, south of Buildings 10, 11, and 13 shall be eliminated. A "NO PARKING" sign shall be installed at the end of these drives and the Homeowners Association is responsible to remove snow between the private access drive and the ten-foot bituminous trail (emer- • gency vehicle route). 10.Stockpiling an unreasonable amount of snow anywhere on the site is prohibited. The Homeowners Association shall make arrangements to haul away excess accumulation of snow on the site. 11.Public utility easements and drainage easements shall be platted over all public utilities as recommended by the Public Works Department and City Engineer prior to final plat approval by the City Council. 12.The five-foot wide strip of land fronting along the Menards property shall be shown on the final plat as dedicated public right-of-way. 13.The applicant shall modify the proposed access points based upon the recommendation of the City and the results of the traffic study prior to review by the City Council. 14.The applicant provide trash enclosures that conform to Section 28-29 of the ordinance. 15.The applicant shall submit exterior building materials samples to the City for review and approval prior to issuance of a building permit. 16.The applicant shall pay a park dedication fee of$99,000 and a recreation fee of$19,800. The applicant shall also pay 4 percent of the fair market value of the land designated for 411/ commercial development prior to release of the final plat. Planning Staff Report—Cases CP00-045, ZA00-046, PP00-047, SP00-048 July 24, 2000 Page 12 17.The applicant submit the homeowners association covenants for staff review and approval • prior to release of the final plat. 18.The applicant shall comply with all appropriate grading and erosion control measures. Site grading of the site is limited to Monday through Saturday from 7:00am to 8:00pm. 19.The applicant shall trim vegetation along East Point Douglas Road along the curve to increase sight distances on the road. 20.The applicant shall submit a sign package for the commercial and residential components of the site prior to issuance of a building permit for the site. The residential phase shall have monument sign that will be owned and maintained by the Homeowners Association. The commercial development will have a sign package that will be complementary to each other and will be used for future issuance of building permits. 21.The applicant shall obtain approval from the two utility companies to place landscaping as proposed within their easements. Proof of approval shall be prior to release of the final plat. Minor modifications to the plan are acceptable, however, substantial revisions to the plan will require review and approval by the City Council. Prepared by: • Kim Lindquist, AICP Community Development Director Attachments: Exhibit A— Site plan Exhibit B —Applicant's narrative Exhibit C —Zoning Map Exhibit D — Land use map Exhibit E — Preliminary plat Exhibit F — Public easement map Exhibit G —Trailway map Exhibit H — Parks Commission minutes Exhibit I —Access location map Exhibit J — Landscaping map Exhibit K — Residential building elevation Exhibit L— Commercial building elevation 1 Exhibit M — Commercial building elevation 2 • r- EXHIBIT A SITE PLAN 7 I IL-11 ILJ I I I 1 ,----.1 ��1 4,:-1-7: 1 -- - ,---,, — ,4. — , —- ■ 4 I I I - I I 1 1 ;d46•ITS°•.:(DM% 1 ` ",rz.n'(Dc[D) 12 I 1 1 .•5 1,.1 1 I I I _ I I ° I I 1 I I I I I �'a C) 1 n. tt • .414 PE till C1 _ 1 rJLl o �I(IIHIIIIIII of f D. c !1 i•_ .__. ■I 1 ■1 __ I. ji. i i .-^�_.E r Nom Rt 1 I 1 ;iii I'1 ----, sou ti r r , 1 , I NM dririlla L J i J . 1,: 12 �IL�O ' _ =.J I , . �I '� In I I. o `;-- It . ' - _ . , C) III ,h d r 11-. 11, 11 r1 I- 4 N I I / ■ Rif MI NM TI! 1 I ■ o- Ili io ;, �'" _ III IN I .. I I o., 1 11 4 ____ L • NM ri 1� �s a // SS� IX n °'1 ^ ���✓`�) �/ /g ��\ u■ °Ni.. / / *k .. , 40/ o X41\ OCqot � / O Fq . ..,,/,;/,,/, ///E S) • • .. o, •.b of �> q T `'l N • .nz • i I `,nCi,� .•SSB S\ i Et g g ti"Cti %7, u / � • .'Y I.- a '7,1p.� '�^ • ,,, _o O ,�r �`-z'i ; z , -- • /t'•.. , D -I o :-- I Com : i if ■�°FFE F in J ifrJr 8 at<� i x?a -4 b ; 2 R i f6R q q a 2 r � 7 a r '� Qt d 11 wi ; : 2' MiI Y L ' J2 L J a ss I;1H1 ;2 d li T R °9. _. t 9 e R t JUN-30-00 FR I 03 :04 PM P_ 02 NARRATIVE • Narrative: Scharmer site The Scharmer Site is a parcel of property near the intersection of Highway 61 and Jamica Avenue South . Originally the property was shaped with the northeast and northwest corners having right angles, the southwest corner having an angle of about 132 degrees and the southeast corner an angle of about 58 degrees. Thus making a long west property line and a short east property line. Menards has developed a retail facility on the southwest corner. 5th Street Ventures has purchased and has submitted plans for the development of the remaining 28.96 acreas. The site is now bounded on all sides with developed property. On the north and west sides of the property are single family residence. The west edge of the property contains a utility easement which runs the full length of the property line and is 75 feet wide. This seperates the residence on the western from the Menards property and will be a part of the setback on this development. A 30 foot wide city easement connects this property through the residence to 91st street south. To the east across Point Douglas Road East (Islay Avenue) isa retail developement containing a Target Store and many small retail and food establishments. The back side of the development faces this property. 111 SCHARMER The remaining side of the property fronts on Point RES SITE Douglas Road East as the frontage road to Highway 61. •, •. ; The property is zoned for 83 general business. Such zoning would permit development of various types including: quasi-industrial and wholesale enterprises, auto, R.V., TARGET N a, 2 boat/marine establishments for display, service sales and MENARD 4-> repair within a building along with all permitted uses AGB 4211, within the 81 and S2 retail business development. 5th Street c s io Ventures has proposed a rezoning of the property to a mixed 16� use developement. This proposal would provide a transition from the single family property on the north and west with an approximately 19 acre developement of medium density owner occupied townhomes. The property along Point Douglas Road East would remain a commercial development and 5th Street Ventures has proposed a combination of retail/showroom, small office, retail and possibly a restaurant on this portion of the developement. Construction is anticipated to begin as soon as city approval is given. Site grading will begin as soon as arrangements can be completed after city approval. The roadway excavation will begin and the infrastructure (utilities) will proceed as quickly as can be arranged and will continue as long as possible until winter weather stops progress. The residential units are expected to begin construction on November 1, 2000 and proceed as weather permits. The commercial sites will be ready for permits upon approval of the project by the city. They will begin construction with the site grading and roadway work and be available for business off of Point Douglas Road East as soon as possible. • EXHIBIT B ZONING MAP 41 R5 1,11. 4444 ammo ide „we it, r 4, t I in si „is = 2 _ EXISTING ZONING • ___ R5 11111 _ L PUD1141111-11.-". • 4 es PROPOSED ZONING EXHIBIT C LAND USE MAP f.-- :::,,,.. ... . .. . - . ... .. ., . -,.,..,. • erivrthill1111::: , , . •..,. 4,... „....ii hensive " "r--- . • yziftWit.r,.. -,-&-. ;41,,..,,. \ ‘ a le 1 . Ai 10 Iflik-S at i d01r,ii 1 =11 - Or* 2020 ,4•:-N.• -Ala Oil - 1 AN ". Iv ::*-ri w... -,-.„:„.,„,..,,o,._ ass, -gam- egzh.,, -. •, - A ; :#1paW.,s.,:'/,,,:;'4 "-,ii.‘h.,,t'iti;'.14t:.•• ::....,;•?... : i.. 1: :. -',.:. 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Q/ o1 i'''i ''C7 717/ , v CA" . 111 3 Dlr iiiiii<iiiiii `.\`\ w 6 9;, :•.: // c• . =, - '' ==- o C ',. •• I a . `ti 4: `% " • ..1 Yom. uT 4'y G .\ . •-.0, 4•11 Ag• e i1 O . t., far kreige . k 4 '> A' 1Ef _ j a A g w pi ii a" $ o "a 1 Rl 11q "13 • . 11 z 0 ] $i °.. -iyr >s lvii i@ - . JT Nu i i 18 . o,II EXHIBIT G i sfi if At ; Z 't Parks Commission Minutes PARKS COMMISSION MINUTES June 12, 2000 • i �8US1tE . A. Camels Hump Scenic Overlook Rob- ogel was in attendance at the meeting t• - iew and discuss the importan - • acquisition of additional lands • •roperties surrounding the Camels Hump . ••erty currently under • •wnership of the City. He also shared with the Co ' sion thoug •n the cultural and historical interpretation values of the property. •• fission also reviewed a memorandum from Kim Lindquist, Community Dev- -• - t Director, which provided an update on current negotiations •- ,een the •rospective developers and property owners in the aff= -d area and possible • - elopment alternatives. Staff stated that he wou • -ep the Commission updated • .e status of any land acquisit'- , as it becomes known. Commission Ch- heney stated that design assi - ce may be available through the Department of • . ' ulture and • ussions should take place regarding this possibility with C. -''ssioner Hempel. B. Fifth Street Ventures Mr. Phillip Johnson was in attendance and presented information regarding development plans for property located north of Menards. The plan highlighted a number of off-road trails and a small recreation/open space area in the plat. He also highlighted a proposed trail within the powerline easement corridor. Staff presented to the Commission copies of the 1992 and 2020 proposed Comprehensive Plans that identified possible need for a small mini park in the northeast corner of the proposed development area. The Commission discussed at length the need for trails and a neighborhood mini park in the area. They supported the idea of creating a connection to the residential property to the north via an existing 20-foot easement. They also felt that it would be in the City's best interest to accept cash in lieu of land to develop other future neighborhood parks planned for this area rather than creating a small mini park in this development at this time. This was driven in part by the fact that the developer is proposing to create and install park amenities within the development to serve resident needs. COUNCIL NOTE: Motion by Steve Morse that the City accept cash in lieu of land dedication as the result of the platting of the subdivision known as the 5th Street Ventures Preliminary Plat and-that no park land dedication credit be provided the developer for properties within the NSP Corridor. Motion seconded by Randall Briese. Motion carried viva voce. • EXHIBIT H TACCESS LOCATION MAP 41141 . 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''i4.', ;.,,; .., "..'• f : 7 t•• ;c :'} i t .'.' ;•• ' •••' .. rt •. ,A7 r. .4 E . 1 !Ti t I 41 i t t. 1 ; I 1 ili it 1 •,i3 ..-1 .t' n1, ; i ,i..! 1 f3 -;.< •••4 I 1 g g.' i 4 1 il ?!.. :- " 4 *. 741 " -1, ; = :::1 •••' • ' '''" '''••••• ''' • 4."ig•0:.';')' -'''' ‘' 6 i ! s. : 1 1 -.-s: 1 i 1 1, 1 71• t.%; 1 sr • - 1-; ..;Y: " '5 1.1:.""P;''''', ! iiii...4,:•.i'l,7:-••;t!, •::,",,• i ' 1 z 31,. 2 't 't4 ;--4 2 , i„ :t ! : ' ..„4 7.,....4 1 .. , ..i ,.. : '. ',•;•,-, _ ,; t. tl.-, I • .: :, = ?, .'.' t'' 2!. --..--... . 7. 1 'k : • - t t. i 1 ir 1' A'F.' i , i l'., ; ;' $. '.".li".. i 14 i 3 1 3 t i i ' ' ' ''''` :', 1:1'2.:-q=.?=1 ';,2; :77 ........,:i--....S •'"..1 5..':: .. ,.: i ,.--- _ .. : i ; t• _ ..., _.. i ' . ....,...... '; 1'.4. ''. LT'. EXHIBIT J ,,r-1 F i i i -; 1 ' , - t t'i I :., s. .: , , :' , ; :, -: I - '' ' LI 31 --.4-.-.'.-.: ••••.t'"::"::"">74.„I':-..-..,;-: ;.;-:;:i .gi.i.i. - RESIDENTIAL ELEVATION V : . 0,•..., -4--..._ ?stk 1:ten} .. ...:-:- ,,• -.''.:. . a 4 , -1; . -..,;,, - ti,..;;-. ' .-!.'.,....-,•,:,----.---, - , Iiilt'.4i' 4 ..,,„, e....;..... i-4446,,..v. , ._,- ;.1. -. - • . ,.,,:..,...4:,,;,.•....e.,...,..•-- - . .- . .... 4, .p., - .A. •'. , ..t Z4 • -•_411Pr. 6Ckt. "t' . - ---ir"-- 4-%.--'• '"^-. & e:ty :.,.........- c ,--. 4 •.-I•ig, -7, r 11--inutim_1,,-- II ,..4.? ,,,,, - ..74-„,;,....,,,-ti.7.•/,:,,,, .eatt4:44:, 4., ...__. ___ „H 4,,,,,..cl,„ ,az., v,-..• -7 '',''.:_:7/1-gaill Oil a NOS? ' t 1 k4ti 0.,.;,t'- 74.• "'„,. _ _ - ''.. 'o.iti/1 .i'.-_,,if' 1------11:ic_-_t_-_• -,, „ ;.„ krt.,.?,,,,41. tajra„:4".". ez.„,',t- 17"!;,:i7.-_,.s.----•:' •. , 141,______________t ,s *,..., „? :ae ... 1: i r=:=I nr.,!-- s•'1.''-.11•11 V• ,,..5, b., ,Iill it;, ./4 Niff ri:J1-7:-.intintuntv:,-,7 eif; ..it '`. a 4::,-.,:ii ,..1„.,,,,,,.:,,, 1ft. ....----. ..,...4„,... • ."11 111141141- q 'ill/1111111%V - 'V at ..::, .5'Pr 4. 71.f E., --r0":.I . i• n, Ill ___-- ..„, 7•!-; 434 19,•„-/61";" .. *4 ' ' 1111;1111'1'i --,_=7-------i111111=li Ille,i. ,•!., 6' -,4", ;..r"?....-ci.:7•:::?)-'•'.11::„..';:c-IIII'l i I. :it t ',1 4 6.11:11-i':', ri lisiiiimiliplirk.cluiDU:=1171.21ilui:,11,2111.1s..t.::::1 7 ..• 1:;.:-.;::_7,t;--It-.-. ---7 1111411 ! I .11 ii F. , , ,.._L.1: tiirt::.., , ---..:-1---..-,...t.t.it% k• '44 i , ‘'l S. . ---7-= 1 -te.' li ;.1 .. -,-....4,;:-.',...'.:;:n A I tit, lop,.1 It i 1:;, IN- "1-1 1 I I E.II IP• .;.4 1-.--;--.4;::• -:23:'11?-.71101 Vett Ilifh OP iitr! I.-i ...Is .:, "v'''''. "4•`;,11 4 ' t 1 1. N t:i ., 1.11v 1.-E 1:,-, :;flunisisistf.,. --.sii -7 -c..,;-..3%.;:,•;.--•.-:.:,,--.;„..... k % ;11,1i- 40%I.li 11.1 1, Et... ::4;. -__- -44...1=tilliig.. • '4 i',.., •';'";.1•---••••••••:•:'..*:; "._•..: 0 i It hi`lti i h.1111 f.-•:- ,i1 :; =s, -- . .-1 t. . . '•..1.....t y'f'.`,4!:'-.i-... .:•:.-41%I 4 j• fit.il iiii.l. 7:-. ICI, 7 c:zz 1 -.70-if:"'---.4%.: •7 *i..,:__:„."i,14‘ 1 '% 41 4;1`.,,Dirii1.I tll 1 , 1 ; ,,,,, . , . :-.. -;,. , , 1 till;:: t 4LlIl 11 iii 1-. '-- -: \ i i k. -i .......:---111IIIII111111111 I': Ei- fi.. , . e u, ic; „,,,,,,,_ .,,r,, ___..._. , ,' 0 il ‘i arl-1 i'l It --71161111F.:.'S. '•:-.-':::7 ::.-4!`f':4 , , : ,i, mr_it_t 41 ip: r - ,..,,, •..,- A:- % i I) ,F g;1 t ;11 1 4--t ::-7...- :111 . 11' _t1.- i Z cv • --.' ' -" , il Al i I MIN 1 ':i St .-:-...-• 0 N•2- .'\ it,=:4--- ,/,-,.--i• 1111 III Et •:::,-;*„-,,,-,.:i i / I Z Lo • -' '':\ V ''il 71':.-1111 s :: -,== ' , „, -,,,.._:„, .,, i,,,- . ., .., .....:, PI II -----r . \,,,, Urti:7-1-5, ,.4.7 ILLyil it'I, IL Iii 1 1114, .iitil i';',:, ,_1 1011 il = tii it ' 1 0.Ni.:±.. ',LEI It;ii E- t t '1'1 . ' II t '' --.1.' INN 11'11111 -ft ,,b . ' 1 Iv,=:-.1,. toil E.---il \Ill ; ' 1 11;".11-- ---70.1;11 7ATITIR . deM 0 -a)- . 1k \',1 li uilti • 13 --;•?-1-."-7.1.C.5::;17,1111 ' 111,11,11111- ..-ji, 11111. 11-z-iiii itrinttn ', ! 1kt = li 45,-1,', VI \. ' ..,,,,;•,.. ii, 1 illIl • '21,,Z. .1 .4.. -';'-';F:-:::' -r--: .'•-•4'.:.:.-;-.-'II t 1111 ,fir ' I‘11 11 1111 i---- .13:1;i:4(i. :7- \ 1 t.-- -'-'';,. , --....-.. .......r.:',..:-..,": i AI,, ,,F,.. 2_1■INI .,1 1 III E. 77 - -'.;;;,...:',.**;:t......". :.''' j'qz..-1-: ugs.„'„ iNiiii EH:-'-''s - :.'‘'-''.'..!'....,:•:-.•.‘.,\\\1,.1,'', \I\0I.Iii,t*I,ik'i-t',t i-kI•:.,_-,--_=-..,f_.- e -- 7---1 ,-ifli11 I :•-'-'. \I " ‘It..i iiiini !III -iiiiiinglip , 11.1', Till I ifillE. I. . it: 1-6mes .11 -----r ,_ • it. • , . _..t,j ,„il t 4,4 > '' 414 12k11 .74%): 41-t6-*`. .... • .‹.•^4 44'a-: 4- ..... n ..z. eit .- .... .. I sLc 14 ei 06444 Ws,"' • EXHIBIT K COMMERCIAL ELEVATION 1 S 114 r !i I r�r, ire it‘...f........m.a.........- { C iil� _. t�F.r t!.}'1i.^ VN it y E 111111 . i • < }, ,,,a, c444q)worm 1 4 aII �;�,.-, - Illi1 um k — y L. ii ';; ,.r- ti,, 111111 v ; • 111111 al II i ! - • — 1 11 I ___ 1 1 i1 , ,._._- • -- ,,, ,: , , T . ,,,,,,, ... ,_____ e-•-•-• 11 III !! i; . ,____.::, iii b I � z�; ! It•� --1 :4 i • i! i 4 I! ; . I i ar tai a : 11 1 a. i i 1 M 1 • 1' M 1 I 1 �M RI'! - a • i . ,•• • . . S EXHIBIT L • , . L/....1- COMMERCIAL ELEVATION 2 Lir% ,r 11 h t ! i i clir- 1 I 1 o II yewcc w .. . ! X 1 !.1 I ' !I • 1 , I 1 Mtn i 1 ! a 1 . I Cam) on 3 il. 1 ', I -fr--------------r-----------------r- 7 , 1 il ii 1 1 i! L) ) i I , c-i . , .....J k _ _r_, , ----------------1- ---cr-- -_—.--.-L fi & 5 j ci cl) cc, .n f, i ,... e i• C ti I i . I a I I 1 i I b b > I I: i zn i ! ic) 0 — ..._ ;. I §d to5444:44 tar'ala aC 1 I i I I i co t; co a 4.... . i 1 I )7. '------'\ It) k 1 i ' t ) is i 1 1 1 i ; ' 1 • f• I I i ! i .. 1 1 litr j 1 z il III 9 = 03 • Ca)aim — .,.1....• - I .A , IT. • ,. ; • a......ar iiuiit.. .c l•itt SISY 4:::urn._ To ,iF:•=C, 13E j Zatia 3t. , rip.=4 Sr....... I V V''^r, i . -, ' i : r-'; ;C -- ,..•=rr: t7. ; ..111.... ;4:1;,4710110.1.. ESE, . pas' i El .,„, pm.-- t • •=;=:, ., •-• • :,-. f,..,•.j—, , izzaaa I ;,...•EEEE 'WY.. II.1.6., •••••=ESE.' ....IP M.= 471.1*W r1.4, ....MO = SSESt. El "SC = toz.z..... - ';= • . ;z::51m: ,f-=' ::::. -- • - WV.Ea -'''.I.h":4"..."."55 . 1•1,0= ;t:24 jilai, t t'l t:ESE •HIM .1 MO. .........1.11,34.1 a 0 I ' ;,.... .azzi• a T45,T,... • W. • .,„ it IR t 1 iii I -; ' : .' 1 g g g 1: .. ..1 . a ril i 1 .i:' 1 I a -1,.. -7,-.07=.1.1: sa•-15-•-72'fl - a Vi i D EXHIBIT M .... ... fr eCTTY OF COTTAGE GROVE To: Economic Development Authority Board Members From: Dan King,Management Analyst tOlNiS Date: August 4,2000 Re: Aerial Photographs for 2000 After researching several Aerial Photograph companies and getting quotes for service, it was agreed to contract with Bordner Aerials to shoot the aerials of the industrial park. They had the lowest cost and had done the last one for us in 1998. Also Mr. Bordner mentioned that he had already taken some pictures of the industrial park area, as well as 3M Center, and would sell them to us without charging a fee for the flight. This saves us the $250.00 fee for that. • Charges will then be $80.00 for the reproducible color print, which we can make copies for around $1.00 a piece. If we want more than 200-300 copies, Graphic Design can print larger quantities, ($560.00 for 1,000). Also, I had sent some pictures of 3M Cottage Grove Center to Fred Luden's Office for his review. S City of Cottage Grove • Memo To: Economic Development Authority Members From: Michelle A. Wolfe, Assistant City Administrator jy Date: 08/04/00 Re: Industrial Park Concept Planning Item 4K City staff members have been working with the City Engineer on concept plans for the Industrial Park. We would like to take the opportunity to show you some of the concepts that are being discussed. Primarily, this involves storm water planning, and how to provide a buffer to residential areas. Recent project proposals have provided an excellent opportunity to begin this planning process. At the August 8 meeting we will review this information with you. \\CG_FS1\SYS\GROUPS\PER_ECON\Economic Development\EDA Memos\2000\August 00 Concept.doc City of Cottage°Grove Memo To: Economic Development Authority Members From: Michelle A. Wolfe, Assistant City Administrator 4,, Date: 08/04/00 Re: Calendar of Upcoming Events Item 4L Stuff for School Drive July 24 —August 21 Chamber Executive Board Meeting August 4 • EDA Meeting August 8 City Budget Workshop August 9 Chamber Board Meeting August 10 Metro East Golf Tournament August 14 Council Meeting August 16 (Public Hearings on Road Project,TIF District 1-11 and Business Subsidies for Cushman Wakefiled Project) EDA Golf Tournament August 22 Council Budget Workshop August 23 EDA Meeting September 12 EDA Meeting October 10 Chamber Silver Plate Dinner October 15 \\CG_FS1\SYS\GROUPS\PER_ECON\Economic Development\EDA Memos12000\August 00 Calendar.doc 1 ---City of Cottage Grove • Memo To: Economic Development Authority Members From: Michelle A. Wolfe, Assistant City Administrator Date: 08/04/00 Re: Marketing Update Item 4M Following is a brief update on current marketing efforts. • (1) We continue our advertising efforts per the approved advertising plan. In the most recent issue of City Business we were highlighted twice. First, we were included on the Top 25 List for Industrial Parks (copy attached.) Second, our ad ran on the same page as an article about development moving to outer ring suburbs. Although the focus of the article was not the southeast, I think it was a good location. It was also the facing page to the TOP 25 list. (2) We have received positive response to our "picnic" postcard. Included in this packet is a sample draft of the next post card we plan to send out to our mailing list. (3) Plans continue for the annual golf tournament, as discussed in another packet item. We are also looking into an event specifically targeting women in business and commercial/industrial development. Attachments • F:\GROUPS\PER_ECON\Economic Development\EDA Memos12000\August 00 Marketing.doc F. A' ,tis �* • 44. i` si '' �. -.;.,,s;;.,-0-,..,4.:-- 7 *taw". _ ' tiMa S # �4 '� A !'�+a 3 + r � 1 ev"1 -sx : ) 4$ Ssi.,x or P� �as. 5 �� .r r :-vrtEE `:a , „ '"�.s- -aa { $14w�: ` :- t,„ 3.,,-;,--.444.., ST w' «s ' ..s�+v+w .fix.,:-...,.,-.,,_:.,--,,,,..-,...,....,-.4,,i40-4,::.. .:�t .t.._._ F 20 July28,2000 TOPZS LIST "wal"'haiOUfT1ii..CO1.. ,,,' I • • Industrial Parks 1 Metro-arts indastrlal parks ranked by total acreage Research by Theron Boyer AI"." Type atdn.lep.wstt 1.r MI*. Aided Square footed/N.d 1900 lamer cow swim 1.s Lwnks aged Ranh Adam Tad ver , d.. Ode Industrie' Owdaddl r Ryer add' L4401.reps/ 1 Valley Groan stands Park 2351 300 12.000 4,947.000 dad le.asarnt ADC 1400. n0 0 maors. Seagate Tedawbet pOd Ritter Hieh'ray 169 and Co a Rata 03 65 I 69 Coro' R-Moo 000 budat Ten.Nybo MewAeonvy, wank Co. Shakopee h.naw Widnes,Wa6ey,Gustafson kat 2 Allose Industrial Part I,SN 320 39.6U 4,320.000 Ainakn Applied'1..e Product.Maaaa. MenOat SM. Ragan 2 Cedar Anaa and Mantra 50 200 7 92 De+aopwaes kc rroPesa00.Rab.Rat-Wq,wwaa Soppll.Tac Awbke D..a.pnhmr bet Lake.ilh MAC Arne Airport Apps W..doodad 3 Eagandabe Canter 1,531 0 420,000 4.850.000 JBL Co. Midwest Coe Cee Swing,3Pk ocros.G.E. D.e Johnson J 1.494 and I-3SE 0 5 87 • S.. y.Pead.hh.1 Condon Systems. Traalt JBL Companies Rod nand Compd.. Eagan rhmm*00000riq 4 Cottage Grove Industrial Park 713 490 M ewers 1.715.000 MOW. 3MRenwa , . l by Andersen Up North Nand ca Michelle woo. 4 Avenuandanal.Avama95th Sues 5. 200 PP 4 Twthwolwgst PP Cooage Grow Evergreen Business Park SN 60 170,000 1.700,000 Shamrock Asur.no Manuhmrn . CeM. 0iewances. Jrry Tomo 5 S Coon Rapids 01.4.a 93rd Adam 40 3 32 D•waoPhrh�1..t Caen MPdn Metier C4mr,Green Oq Dewkwrnhua boo. Coon Rapids ►eelu0m9.Honeywell Hid Sanger 6 Opus 2 562 0 1.932.000 2.065.749 OW.Cork Armond., Family Wawa.,Rod.. Medrol Michela Foster 6 Nirway 62 and kiddy IN 0 32 17 Symons. [A.0 d Unsaid I/rhn.re Opo Northwest MinneronYa 7 Sounlaa00 Plinndpow Induced(sEPv) 525 to 200.000 600,000 MCDA Namaland no.Pace 50770.7 S.vp roes.Al/Ma Jia Fang.. Uniwrtity Av.aM Miphwa7 380 60 7 7 Wed Swans,Universal Pro.Primp Apar.ICC 4,4A7 Mi /IS Corp.CMMew W 8andBloomington Western IndustrieIndustriePant 411 0_ N M 3.640,000 0MPI0 c.d. ekoy, Our,Ra.,oos. or pp I Ohl Shakopee Road aWonted,Awe S 0 N36 aM deader. T174.4.0,echooloy,test P 4.narr6 I/RM.oIrm NMeherm. N uooningten Hadq Ce. • The Waters Ind lid See Park. 447 1.275.000 200.000 CPI Corp. Northwest Wad,Silicon Graphic,Cray MWts Int. eCarded 9 9 4494 aM Highway 149 47 7 4 Pod POSenn..Ipasaanm Dad Sugiy, CSM Cap. Eapn Barren Anna. Anoka Enwerp'.Park 310 15 116.300 3.151.694 sty° And ;and.Shins.IMI Ca weAnob 144444194 Robert Kircher 10 II A 0 id um y 10 rThrAwedS 10 42 Tao60,First Taw Spore,Capper Sales noka Sorin Industry Center Perls 260 10 N M MuMpi. owners Gage In.ken Marterini.Tool Products. pp 11 Mi 169 nest Ona lake Roadad devaap.. lDu5AFC0,Nordic Ppm& • 23 New de/ 10 I 57 Colds AVTEC Awn'00dren. N Rogers Industrial Park 232 83 W 1.190.650 Rogers Industrial Dspennent 06.Gen.Rogers Doo btribudC.000. N 12 NR 1-94 and M.1hway 101 37 N 10 ►art 1noJPPodv Gayb.Ebcmt Toho Bhdld g Supplier Advance Rogers Canonry Int Redd System Twp City Ms. Pine..Cangary Int Cisanhaaran Lakes Bustles Park 330 0 100,000 1.090,000 N vkmry Endow.Rosemount The Instant Warr Pktl:1.poor 13 D M ihw,y and AAD w 0 21 Cot,Udall El Naiad Emerson ncowm,Motion 06.620,644620,64446e Cn,nnas.en Caaoab Canon Center SN 0 1.17"" 795,000 Carlson Rd Esse Carbon Companies.Ions Ider.ation Senues. w 14 I "14 and 1.3M - 0 7 14 Co. Apo Hoolthon. I.4 M.I.fo.da.Gage Mattering 62. Mlneetenks SerdeK SRF Cordes,McCracken Brooks Mew BrMe Unthaws Corporate Center 2N 30 N 1,400.000 Pkdd d. ewes Raahuwnt Aerospace.Nordwrn Toand pp 15 LS Wear Canty Road 42 30 N ynh 23 Egamt Das Ste.Waymv bol oa.,,..Asses SEDA Iurnaville Mar.oha PIVE/Girs kc,Rhgp hdmriesSundae Coln Rapids Industrial Park 235 29 30.000 000,000 Shamrock Modern Tool,Adaaaer sats USF I4o11.M.EDM Jany Tawon 16 16 xwAO k 19 1 I, DevelopmentCir Sdmodn DewWpma t Int Bas Creek Suints Park 111 - 13 550.000 656.000 BPs 9P..... Called,Network T.tonpol.p,Pared teed fwd.*,Fahr 17 a gas Lal:Road and MMb.wy IN 13 4 6 Sdmdet Select Cawdor[ 0Pd � LA:: Mendota Heights Bearer.Park 210 40 850.000 640.000 ...A Propnds Northand dorm.Co.Asaomsd 0. ... Soo.Mo. 17 ID R a Knob 0..W aM-% ♦C Lwow Widnes,Apel bah-Paycb.a.Sea op.United Piddle Mmdo. Meiphta Carry Aram Woodbury Commie=Gentler 21111 46 - N 645,000 Woodbury Riwrtew.Tr99.Top,Cay-Hen . Wad Pfaff19 VR 4W94 andurymdbWmy DrN Dna 46 3 Caprru Cm can.m.d.daa Oernr r.PRi n. gColds TTowleoodb 20 Riverview kdlswrW Park IN 0 t Pp oat Pad Pat a Bode,Aero S7swn . Na» Mase I.ulmrd M N Awl)' Nor IsPau 0.000. Crosstown us odn Mori%Business eCrow 190 51 73,000 1.035,600 Dud W... *4.1000. .04ices .5 .501.... 0.010 Poism rt Tao . 20 21 eft...eAvenuesa 93rd Avenues Nth S 1 I 6 • Fes'dog.A.I. Oh ._an.b Red I.00ktyn Ara 22 Iy Se.Pad Energy Park 113 0 N N St Pahl Pen Ewdo.rd1.1 Sohdd aau.Ada MeCwt.. )dm Wowed Soda Avenue and Entry Art Drew 0 N 949 Aod1ent7 PLeC09.14.al CoR ..Mirmerpdb .nhe Connty C.d. CO Caawed SS. Paul Sti dl.P0nc Business Perk IN 60 80.000 1.300.000 Sawdh k PW PIRA Waeno Co. ortmd a .Go.* 9904- pp 23,,,2,l I00 S.aky.d Rood 60 1 13 �ROw'6� SpCI Ridard 08. South St Pod O.arwater Crede Development Cesar 131 94 Pp 300.000 Peddaln earn Ad Gaphie.Nedra Wholesale.GNW Medd )ora Atm 241. I7 1.30E W Coag 9944 9.W 14 91 N N Labs Elmo Modems Perk 12S 110 se,000 N Used Lauf i.LaPod Modal Cas NIP NR .,...7. and Pad Drne 110 1 PPUnfoldUd Properos Elmo AbbrwvDen p.na.ter Ploe= 1.r kdoneoon leafed Pak regrew...a EDA=Eonona d.o lapnera Adam 1.Ma s at -Cr=na.wn Ned seih.a Comer ad papa Crank Ward Ar.4110 on WC NA=Not.ai1Wappiotla - Moth Sar Swarms Park 024 and e25 w roars k dried m p.0.ida Worms t NP=Not pnvd.d - 1.R pars 1.t did not respond to rearm Yi S i: . `>, ' -t' Because your business is online.: 612.395.9090 • . : , `9 P e0„i�i �' ` ,T � G ,; -3 q.. .x`k + wn,�, e`, `'--• ''"l.,. .. "t''s " :.;,,,,..":4:4::-" 6� v * ?Y o. <� tt �6°00'4 ;-r; �T,�Y`°r'`7;"-'° „,s .w"a} '' - '!`IIS.-, ,` ., t.r�5. k T 6"�` 4^' y r a�n g � ..,,,,:;;1-..-;,,s,---� 3k t } '-,} -' T . 4 =+9} Y -err_ : v : 4,:z ; ;._ s c, 1?7' .e''sit w-42�- ..-r ;;,..*,-041%-:,,.-1..--_>:-4m:::�,, • .. -- 'r y..F 9h s. 4 "'..,?�3; e ','� 1, "E3 x .j a ger-`=}1j --x.�.. i • II .row '' COMMERUAL REAL ESTATE C7tp8aagnoss was 2g,2000 21 Industrial moving out , u .. By Jim Martyka Developers the right site r. Conereuure wow Rogers, Blaine, Chaska Wta ever ] �L,., 4 }• t. mwght these outer ting suburbs could be me 1/]r e 17�Jy�" L in the • kip 'l 'rn Cities'next big industrial centers.But '"''"'CC t'•"'•'" g as plots of land m the maser ring eominue m outer Z�`_..1._ZS, f •• �h mess irk with immediate accurate F94 _— fill'W and suburbs close to Minneapolis and V1.lLGf �(d(J(�/-(Js .. •• Access Minneapdis/St.Paul market St. Paul shy away from industrial-type • Gain Wisconsin business advantages H!�L SO;at - developments.the ower ring* especially the erten growth. p� /t t p p y northwest and the northeast,is seeing tepid 'lbs most amazing thing is that imam Q t. G Qtr.O utIn t'QCII •.,,:y': ` -• industrial growth. m these buildings has been nomondosn" A year or two ago,this kind of develop- Hickok said.That's proven by the fact that HudSOII,`'t��SE011S10 _ .. mem( wouldn't Gave been pnideat." said developers are doing developments• Chris Hickok,vice president of industrial building without any specific rename in � �:IYttYaa ,W ,_ brokerage for Bloomingtoo-0ared United mid 505 Third Street•Hudson.th si n spar •. Properties."But with the scarcity of Lad in Interest has been very high"said Chris 7153864765•wwvs7trou Mrsiraess corn the immediate metro area,developers had to Johnson• a parmer with Hatfield. Pte. look elsewhere. Now, everything in the 'Companies are learning that these cities northwest is being bought up" aren't as far out as they seem with the flea More spec;6aally,developers m baying way system Minnesota has." parcels of land"elm. Chanlpho and One of the main reasons these develop- . Me•.kios hi Champlin, Minodoeka-based meats ate taking place is the scarcity of land �`"` k � , ... : Chesapeake Cos.has a deal under contract in the inner nog.F_csentially,everything is s g .;�:_,� with Minoetonka-based Opts Northwest for built up and more and more developments, r almost 55 acres of land At the same time. even commercial and re idential ones,ate r �z 5+' ,� r Si_Louis Park-based Marfield,Belgatde and g outward Yaffe Cos.is building a 130,000-square-foot "f ie a ate mole residential develop- •:','':',.'-•;,..:.'.-‘7 ..,.14-7..;',.-.7'.,s0111 - 4. . YaffeheadquartersC for Far North Windows and mens moving:mbar these arras," acid lack "e' Patio Doors. a subsidiary --'" `" �` ,,t,;'..=-11,;:::, of Scbercr Ttxnquist, a of the information Brotelers Lumber, on an 18-a re site. ht. management and research team for CB ' Roger,Hatfield also is building distrihu- Richard Ellis in Bloomington. Tornquist ��• {_.•� 'r - `r; . Don centers on a 15-acre plot of land as trveA h7acks industrial developments m the Twin R 5, •• . :7� 1s as a 36-acre parcel. Cities.'When those developments 6tui m 4 . ��, g -,4‘,,k.',..-'° t: f Likewise, development activity has happen'�y d''other developments to the = , "+ increased Blaine and Lino Lakes—with And these outer ring cities generally are Wispark and Industrial Equities leading the happy'to have them."they bring jobs and charge.At the aouthem end of the metro increase the tax base"said Scott Schulte. area Bloomington and Chaska also have OUTER RING m page 26ky'r • -.s ,a rid•= +.,2'g„r ,amu'.. '' • , . -,_ . GROWTH PARTNERS � - ._:_ ' COTTOVE _ I••M=' .ui�ii I1NIDUSTREIAL PARK w a Taking Minnesota's fastest-growing • j • s communities to new heights. - —1 I iel . Yaw want yaw business$oBy high in the 21stcentury.ThaYs why your II tocol Touchstone liasrg�'Cooperative is corrrr Msd b prov ding etre oF- s k ' \ the-art tedrrology and personalized service.Al affordable rates. _ 30.71arai We've bulk a repteation For i ri ,occountabili ,innovation tend -. w � n >r _ n — omrvTwnity commitment Which means we 11 be right there For you.To --e-z--s-Y help propel your business and the communities it serves to nen height. e , 7 Ate all,we're port of an ollionce of local,consumer-owned electric l T ' utilities across the country.Already millions of businesses and homes an Touchstone Enagl/'Cooperatives for poser. We're Minnesota's Ehdric Cooperatives.And when it comes le messing 1Vc ser pend 4w., *After co mtmme the needs of your businesses,the akq/s the limit. edition ofaommrmiry much, we selected support.Our imrsr - Cottage Glow ere the m-Pim' dm far ea .emu • BUILDING tatm ?dVeTouchstone as wooing and equip- Renewal by Andeneu^' ONi,art o main- m.nub ringk.a l v SUCCESS! .01 rs.for_our ' because overt° sera • C. Mi�ehweltm Aenuau,, 3)65 bo good�b.tz Touchstone Energy' �°'e 7O1a tpp••ek oveed • awe the$30 a.eaig Lha pool• The power of human exmneasorts °ppOre"°i""` ��so car C`°aie cal'W.sear www.tnuchstoneenergy.com 051/456-211112 Senior Vire Ra Beat te -Fend Loden, Window and Patio +Doe(sparer•1nwied Bo:6.0•••••teem Nei•sew 1p so:Manager Door B.mnen c en"spat erad tom. tsprn Up.1 law•(aaamr.Eurry•tri"ars Ps.•inc tion aadn.•ho(ma ern 3M Animal Corpsman e d(roe 1...r...C.A.tr..C.F.I.tan;•and ad t.Gip ileo.ts..aw Cay of Cottage Grove Economic Development Deportment _ bowline stent Samba*reeled:P...CM...•tate tap.epai(.redo t�tenter Pons swaps•mew Wen.•ale len way(span•Ivo fairy ani ti= 7516 Nab Street soot!Curage Grote,M):55016 seas Go^asn But•tel 4e Bon Cm....•1.6...1 wet(=Woe•tpn..Bei sro� M sag(651)158-288'1 . -(rd aroi enema.•1p.rasr(aaledw siert•taa{adr Buie(attsnaw +1`�(seder Boort swaarp•Gas emu rqt www.cottage-grove-org Si ♦ a .err• .ss_, .,i. 4,,, €y- m set'' - '+4+� -�f "5_ ..+3 ,..."4..,..(--,....,;-._ ate" .l . , k .yK { t.--,,,,,,,,. .01,&.'-£{•r'a�i-1�' ._. _ � F �YNr*t. � � r.P .r--% ^.;•-.-:,.',.,74.7. _'''''.47.,i''' 7 + � .dc �"s ''''''''''"1"t‘-...-.- _ • s ra. ii.•s /s.F, :4,....:.,,,,,,,..,;;:i.*:,..:-.,.... ^a' •:.,,,,',.;,.-,,,:<:..;:'::-..;, wS ;_, :1x .tom- '"f-r i P &n ' `'•3 ... ' eT -fter-; ... > te*. - - .{�. 1,-.... 4 - v. �, x : r . t :;:_. �, + - . • - - .-7:1-;••4--.;,!-- -,-,4.;.;••-• t 4 eJ.i•'ZS )Y.3 .. k ,Rx } ...,,,,-.?,,,,........,....-...:4.:-.1,' .. Yf�' ` �- +- • • •. 2i CiTyBudtwo -yWy 28.2000 COMMERCIAL REAL ESTATE www t .�"� ���,..�y 0. 4"1 fit We bring solutions to your 0 r R � S r as CLEANING NEEDS &OWNweb Ow 'C 6 - \ � $ e .,: (laid! are aQ• 6apw. :: Tt : •u .' imentw A. a wakk 7, h•' __,Yt.Yaeri. fest !FACES �Cli li S 111STitltil�IfS sows i ALIN imams • J_. Ave.N. sots.Y Ya aitro" - k 4 edited)<ave -��'f ' rs-�= `Mil Nr6asd II pan THE Lly.EAN►I f Contact OS 1E -- Wet aeaa■ 94 w o tarl�saa w Fa GROUP ►INC. f�) ext.3 tie same 11001 Moral_ Wadies ad h0/ r Dna . � ` '4'-: F,-r . St ., ..�. .�'+!1'971*- -issues with each city.no matter where it is" OUTER RING Phu,there is the issue of pricing . rx :,• �*'rts -- 'nr from page 21 mote a0d mme developers show inte7est;n <.,3 „ ---1..: these cider, the more the paceof land ".y t"w,a� • ; , i city planner for Champlin.`Plus.it incases iameases.For example.land in Rogers sold .,s .. ',- ,-, i „',':,,,*.,..i.4.4, y,V, ,a,_ay�r _ r t the number of people you have in your. am noes- for SI.25 pea square foot two years ago. •_--",-;• ' ' -:''':-_ *''- •s'",` #tom,- muniry and that helps all the local business Today,it sells for around$2.Hickok said -,; • As for the developers,there generally However.developers still say the main c►al-- � tends to be a link less hassle in these ones- lenge is changing people's perceptions. •w� � � in the in In recent years,city governments "You have to get people past thee thought of I // J in the inner-ring suburbs Gave stxmd away 'Gee.that's far north:”Schottler said from industrial developments to either man- Eventually,it may be too far north,even . �'� `! ,`"` ''- ufarneing centers or office buildings,which for the developers.Land is already running . *. 'i. send m bring mac jobs ssgtwlo foot_This out m des that were ons coatiidered too to look further : -:41:::". - w _ ..:: '� north and southn'e-c that happy to �'7 don't think anybody really knows how - < r w take distributio0 centers. far out developers can go before it is too far,•. �-: .1-- "Ibese odes are very open es develop- Hickok said."But for now,those developers si : ¢ ,^ �. z ,, mens,but They still►vow what they want," That kinked in thea crystal balls and�w that } ;1 "-,r �''. ''l'h 5':"l'' _ t Steve r manager of development Howtb waz going further hath will have an r .�: for W which amend is devil- advantage. • i ...: rspeark Carp., y' cage. They'll have The nest major � I S°Pinehoreview. the Rice Creek Corporate Park m devekilimeats" ■ i ,,,��a^ Shoreview."You still have m work stn mnvtg i a i . - -• -,. . ,'_ , .E. - 4--rrtr _ • y t.. 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