HomeMy WebLinkAboutBoard of Commissioners - Minutes - 09/30/2014MINUTES OF THE
OTTER TAIL COUNTY BOARD OF COMMISSIONERS
Government Services Center, Commissioners' Room
515 W. Fir Avenue, Fergus Falls, MN
September 30, 2014
9:30 a.m.
Call to Order
The Otter Tail County Board of Commissioners convened at 9:30 a.m. Tuesday, September 30, 2014 at
the Government Services Center in Fergus Falls, MN, with Commissioners Wayne Johnson, Chairman;
Roger Froemming, Vice-Chairman; John Lindquist, Lee Rogness, and Doug Huebsch present.
Approval of Agenda
Chairman Johnson called for approval of the September 30, 2014 agenda. Motion by Huebsch, second by
Rogness, and unanimously carried to approve the Board of Commissioners agenda of September 30,
2014 with the following additions:
• Boat & Water Federal Equipment Grant through the MN DNR
• Lakeland Mental Health Center Update
• Discussion Regarding Ditch Nos. 5, 68 and 36
Consent Agenda
Motion by Huebsch, second by Rogness, and unanimously carried to approve Consent Agenda items as
follows:
1. September 16, 2014, Board of Commissioners Meeting Minutes
2. Warrants/Bills for September 30, 2014 (Attachment A)
3. Human Services Bills & Claims
4. Absentee Ballot Board Appointments -Peggy Avery & Pat Tell
2015 NACO Membership Dues
Commissioners removed payment for the 2015 National Association of Counties (NACO) Membership
dues from the Consent Agenda. They discussed the merits/reasons to be members of ihe association.
Motion by Huebsch, second by Rogness, and unanimously carried to approve payment of the 2015 NACO
membership dues, in the amount of $1,146.00.
Lakeland Mental Health Center Update
As a member of the LMHC Board, Commissioner Froemming updated the County Board on a recent
LMHC meeting. He indicated that due to a recent court case settlement, the LMHC budget for 2015 will
remain the same as 2014 rather than increasing by 2% which was previously anticipated.
Federal Boat and Water Equipment Grant
Motion by Rogness, second by Lindquist, and unanimously carried to authorize the appropriate County
Officials' signatures to execute a 2014 Federal Boating Safety Supplemental Equipment Grant agreement
between the State of Minnesota Department of Natural Resources and the County of Otter Tail. This is a
non-matching grant for $22,000.00 and will be used to replace an old boat for the County's Boat and Water
Patrol program.
Order for Ditch Nos. 5. 68 and 36
David Hauser, County Attorney, spoke to the Board regarding the public meeting held at the City of
Henning Community Center to obtain comments from benefited property owners about redetermination of
benefits and/or consolidation of ditches 5, 68 and 36. Motion by Huebsch, second by Rogness, and
unanimously carried to direct the County Attorney to prepare an Order for Redetermination of Benefits and
Consideration of Consolidation in the matter of Ditch Nos. 5, 68 and 36.
OTC Board of Commissioners' Minutes
September 30, 2014
Page4
Public Hearing for Consideration of Tax Abatement Project
At 11:05 a.m., Chairman Johnson opened the Public Hearing for consideration of a Tax Abatement for a
proposed Grow Perham, LLC project, which consists of the construction of a 24-unit apartment building on
Lot 1 Block 3, Country Pine Estates Second Addition in the City of Perham. Commissioners Rogness,
Lindquist, Froemming and Johnson were present and Commissioner Huebsch was absent.
Kelcey Klemm, Perham City Manager, explained that this proposed nine-year tax abatement contains
income guidelines whereby 40% of the residential units must be occupied or available for occupancy by
individuals whose incomes, at the time of initial occupancy, do not exceed 80% of the State or area median
income. City of Perham officials discussed the need for housing especially in Perham where there are jobs
but no housing.
At 11 :16 a.m., Chairman Johnson opened the floor to the public for comment:
• Jim Osterfeld questioned how it was determined that this would be a nine year abatement.
Kelcey Klemm indicated that this was modeled after a Tax Increment Financing (TIF) option that the City of
Perham used to have but is no longer available.
• Jim Osterfeld expressed concern that if tax is abated for an individual or organization, the tax is paid by
other tax payers. He owns rental property and faces the same low income concerns as everyone else.
The tax on the property without the building is paid (not abated). The concept for tax abatement is that,
without the abatement, the project would not have been built, so taxes for other property owners is the
same as if construction never took place.
Hearing no other comments, Chairman Johnson closed the Public Hearing for comment. Motion by
Rogness, second by Lindquist and carried with Huebsch absent to approve the Tax Abatement Agreement
by and among the City of Perham, Minnesota and Otter Tail County, Minnesota and Perham-Dent School
District #549 and Grow Perham, LLC as presented and dated October 1, 2014. This Tax Abatement
agreement is for a specific housing project and differs from the current County Tax Abatement policy which
has general application . to proposed economic development projects in that this agreement does not
require the payback of the abated tax after start-up of the project.
Recess & Tour of a Portion of the Detention Facility
At 11 :30 a.m. the meeting of the Otter Tail County Board of Commissioners was recessed to travel to the
Courthouse. At 11 :50 a.m., Chairman Johnson reconvened the meeting at the training room in the
Sheriffs Department at 417 S Court St, Fergus Falls, MN with Commissioners Rogness, Huebsch,
Lindquist and Johnson present. Terry Hoff, Facilities Operations Manager and Richard Akerman,
Detention Facility Administrator, provided two options for remodeling the jail break room and nursing area.
Commissioners toured the area and discussed reasons for change and possible solutions. The meeting
was recessed for lunch at 12:20 p.m.
Reconvene
At 1 :07 p.m. the Otter Tail County Board of Commissioners' meeting was reconvened for afternoon agenda
items. Discussion took place regarding the Environmental Protection Agency's Waters of the U.S.
(WOTUS) proposed rule. The EPA will be accepting official comments until October 20, 2014. The
following resolution will be sent to the EPA as official comment from Otter Tail County.
OTC Board of Commissioners' Minutes
September 30, 2014
Page 5
OPPOSITION TO EXPANSION OF FEDERAL REGULATION OF WATERS
Otter Tail County Resolution No. 2014 49
WHEREAS, the Federal Environmental Protection Agency (EPA) and the United States Army Corp of
Engineers (Corp) have proposed regulations expanding the definition of waters of the U.S. under the Clean
Water Act; and
WHEREAS, the proposed rule changes give the federal government even more authority by expanding the
definition of "navigable waters" under the Clean Water Act; and
WHEREAS, the proposed rule change by the EPA and Corp would subject almost all physical areas of the
Country with any connection with downstream navigable waters (as currently defined) including such
features as road ditches, drainage systems, natural or man-made ponds, wetlands, and floodplains to the
jurisdiction of the Clean Water Act; and
WHEREAS, these areas and all protection of waters are already subject to local land use regulations and
control. Waters are protected by the State under numerous programs including the Wetland Conservation
Act, the State Board of Soil and Water Resources, Local Soil and Water Conservation Districts, and the
Minnesota Environmental Review Process; and
WHEREAS, the proposed rule change will cause significant harm to agriculture, will take control of land
used for sustainable production, will stall development generally, and specifically negatively impact county
owned and maintained infrastructure such as roads and ditches and county regulated drainage systems;
and
WHEREAS, the Corps is not adequately staffed to effectively deal with applications before it under this
current jurisdiction; and
WHEREAS, regulations by the EPA and Corp have proven to be costly and time consuming; and
WHEREAS, it is impractical and improper for the federal government to regulate every ditch, pond, and
rain puddle that may have some tenuous connection, miles away, to a body of water currently defined as
"navigable".
NOW, THEREFORE, IT IS HEREBY RESOLVED:
1. That the Otter Tail County Board of Commissioners hereby opposes the proposed regulations
expanding federal regulation of waters.
Upon the motion of Commissioner Rogness, seconded by Commissioner Lindquist, and passed on a 5 -0
vote, the above resolution is hereby adopted by the Otter Tail County Board of Commissioners.
Adopted this 30th day of September, 2014
Dated: /o / 07 / 2,:,1'-{ D OF COMMISSIONERS
By:
OTC Board of Commissioners' Minutes
September 30, 2014
Page6
Change Order for Courthouse Remodeling
Motion by Huebsch, second by Rogness, and unanimously carried to approve Change Order No. 003 to
Gast Construction Co, Inc. of Fargo, ND, in the amount of $55,738.00, for Courthouse Remodeling
Phase 2 (Project Number 1120). The Facilities Operations Manager reported total utility rebate checks on
the project at $58,564.01.
Canvassing Board
Motion by Johnson, second by Froemming, and unanimously carried to appoint Commissioner Huebsch
and Rogness to the Otter Tail County Canvassing Board with Commissioner Lindquist as a back-up for the
November 4, 2014 State General Election. The Canvassing Board is scheduled at 10:00 a.m. on Monday,
November 10, 2014.
Payment Approved
Motion by Froemming, second by Rogness, and unanimously carried to approve payment, in the amount of
$1,817.84, for costs incurred under the provision of M.S. 609.35.
ADOPTION OF PRELIMINARY BUDGET AND LEVY
Otter Tail County Resolution No. 2014 -50
Proposed 2015 Budget and Net Property Tax Levy for
Payable 2015 -
Payable Payable
2015 2014 Percent
Gross County Property Tax Levy (Non Debt) -35,032,865 33,921,632 3.28%
Gross Debt Levy -
Veteran's Home Bonds 136,200 130,000 4.77%
Master Facility Plan Bonds 118,283 118,283 0.00%
Ottertail Operations Center Bonds 526,890 525,840 0.20%
Ethanol Plant Bonds 0 0 0
Government Services Bldg. Bonds 927,935 929,741 -0.19%
Total Gross County Property Tax Levy 36,742,173 35,625,496 3.13%
County Program Aid (Certified) 2,022,467 2,084,096 -2.96%
Net County Property Tax Levy -34,719,706 33,541,400 3.51%
Gross/Net Lake Improvement District Levies -
Pelican Group of Lakes 120,000 120,000 0.00%
Pine Lakes 31,560 33,150 -4.80%
McDonald, Kerbs & Paul 150,000 125,000 20.00%
Big McDonald 12,000 12,000 0.00%
Total Net County Levy Including Lake Improvement Districts -35,033,266
Special Taxing District Levy -
33,831,5~0 3.55%
Otter Tail County HRA 457,851 416,000 10.06%
Proposed Total Net Property Tax Levy
RECAP -
Gross Tax Levy (Total)
County Program Aid
Net Tax Levy (Total)
OTC Board of Commissioners' Minutes
September 30, 2014
Page 7
35,491,117
37,513,584
2,022,467
35,491,117
34,247,550
36,331,646
2,084,096
34,247,550
3.63%
3.25%
-2.96%
3.63%
After discussion and consideration, a motion was offered by Huebsch, seconded by Rogness, and
unanimously carried to adopt the following resolution:
WHEREAS, on or before September 30, 2014, Otter Tail County must adopt a Proposed Budget for
Fiscal/Calendar Year 2015 and must adopt and certify a proposed net property tax levy for Payable Year
2015, and
WHEREAS, the Otter Tail County Auditor's office has accumulated the Departmental and outside agency
requests, and
WHEREAS, the Otter Tail County Finance Committee has met to discuss and review in general terms levy
and budgetary guidelines, as well as the proposed department budgets and various agency requests, and
WHEREAS, the Otter Tail County Finance Committee will complete additional review and discussion, as
needed and required, of the 2015 proposed tax levy and budget prior to final adoption in December 16,
2014.
NOW, THEREFORE BE IT RESOLVED, by the Otter Tail County Board of Commissioners of Otter Tail
County, Minnesota, that
The amount of $36,742,173 be adopted as Otter Tail County's Proposed Gross Property Tax Levy for the
Payable Year 2015 representing a 3.13% increase from the Gross Property Tax Levy for the Payable Year
2014, and that the amount of $34,719,706 be adopted as Otter Tail County's Proposed Net Property Tax
Levy for the Payable Year 2015 representing a 3.51% increase over the Net Property Tax Levy for the
Payable Year 2014, and that
The amount of $313,560 be adopted by Otter Tail County as the Proposed Lake Improvement District
Property Tax Levies for the Payable Year 2015, representing a 8.06% increase from the Lake
Improvement District Property Tax Levies as adopted by Otter Tail County for the Payable Year 2014, and
that
The amount of $457,851 be adopted by Otter Tail County as the Proposed Otter Tail County HRA Special
District Property Tax Levy for the Payable Year 2015, representing a 10.06% increase from the Property
Tax Levy as adopted by Otter Tail County for the Payable Year 2014.
BE IT FURTHER RESOLVED, that the amount of $92,400,000 be adopted as Otter Tail County's
Proposed Budget for the General Fund, for the Budgeted Special Revenue Funds and for the Budgeted
Debt Service Funds for the Fiscal/Calendar Year 2015 (Expenditures/Transfers/Other Uses).
Dated: lo lo,/'2,,,1'-f
Attest: ~~
LarryKron, Clerk
OTC Board of Commissioners' Minutes
September 30, 2014
Page 8
2015 Budget & Levy Public Hearing
Motion by Froemming, second by Huebsch, and unanimously carried to set the Budget and Levy Public
Hearing at 6:30 p.m. on Tuesday, December 9, 2014.
Aquatic Invasive Species {AIS) Committee
The Auditor explained how the AIS funding has been budgeted. Commissioners discussed the process for
determining how to utilize the funding for the nex1 two years and discussed the work of the AIS Committee.
Motion by Rogness, second by Huebsch, and unanimously carried to authorize the AIS Committee to
receive per diem at $75.00 and mileage at the applicable IRS rate (same as other committees) for their
work with the County. These dollars should come from the State AIS funds.
Discussion Regarding DNR Proposals to Acquire Land
Jim Wolters, MN Department of Natural Resources (DNR) Area Fisheries Supervisor, submitted
information on a 90 acre parcel which was a campfire campground that was foreclosed on a few years
ago. The land is located between Trowbridge Lake and Ida Lake. The information included a letter of
support for the DNR to pursue acquiring this property as an Aquatic Management Area {AMA) for
protection purposes for critical fish habitat from the Lake Association. The second opportunity for an AMA
area is 175.12 acres with 3,166 feet of undeveloped shoreline on Otter Tail Lake. Ron Richter, owner of
Lost Valley Resort on Trowbridge Lake spoke in favor of the AMA by Trowbridge Lake. The area could be
used by the public for fishing, hiking, birding and picnicking which he felt would be an enhancement to the
area tourist industry. Commissioners suggested that some of these AMAs could be used for primitive
camping which is needed in Otter Tail County. They suggested the possibility of a new type of partnership
whereby the State DNR could contract with a private entity to manage the primitive camping. Mr. Wolters
will research the possibilities for use.
Road Ditch Cleaning Request
Motion by Rogness, second by Lindquist, and unanimously carried to approve the application of Bradow
Farms to clean out a county road ditch on the south side of CH 114 in Section 29 of Orwell Township as
presented.
Bid Award -Shoulder Base Aggregate Material
The Public Works Director submitted two bids for Shoulder Base Aggregate Class 1 material crushing at
County Gravel Pit No. 13 in Dead Lake Township. Both Central Specialties, Inc. of Alexandria, MN and
Mark Sand & Gravel Co. of Fergus Falls, MN offered the exact same bid price of $61,400.00 for the work.
Based on County Attorney advice, a coin toss on September 24, 2014, was used to determine the
recommended contractor. Motion by Rogness, second by Froemming, and unanimously carried to award
the Shoulder Base Aggregate Class 1 material crushing (Gravel Pit No. 13) project to Central Specialties,
Inc. of Alexandria, MN at the bid price of $61,400.00 as recommended by the Public Works Director.
Quote Summary & Recommendation for Award -C.P. 14:SAL T PP
Motion by Froemming, second by Lindquist, and unanimously carried to award the quotes for construction
of a Salt Storage Facility in Parkers Prairie, MN, to the low bidders, Hanson Silo Company (providing the
pre-cast panels) of Lake Lillian, MN, in the amount of $33,197.00 and Mid-Central Equipment of Henning,
MN, in the amount of $32,507.00 for a total project award of $65,704.00. There were previous plans to
construct a cold storage building at the Fergus Falls garage. The Public Works Director indicated that the
project at the Fergus Falls garage will not move forward. The budgeted dollars will be redirected to the
Salt Storage Facility in Parkers Prairie.
CSAH 34 Grade Raise
OTC Board of Commissioners' Minutes
September 30, 2014
Page 9
Rick West, Public Works Director, requested approval to do a temporary grade raise on an area of CSAH
34 west of Perham where the south lane around a curve is in the water. Motion by Rogness, second by
Lindquist, and unanimously carried to authorize Anderson Brothers Construction to complete a temporary
grade raise on CSAH 34 west of Perham due to high water based on unit prices at an approximate cost of
$62,000.00. This is an emergency project due to disastrous flooding in the basin. The motion also
includes proceeding with documentation that would qualify for reimbursement from FEMA if available.
County Benefit/Insurance Approval
Motion by Lindquist, second by Froemming, and unanimously carried to accept the CY2015 Insurance
Benefits as presented and to increase the Employer Contribution for non-union employees to $1,100.00
per month which matches other groups throughout the County.
Adjournment
At 3:25 p.m., Chairman Johnson declared the meeting of the Otter Tail County Board of Commissioners
adjourned. The next County Board meeting is scheduled at 9:30 a.m. on Tuesday, October 7, 2014.
Dated: _..:..l:::D-1-/_,,~....,'7+/...,,z.<=o'-'-1..L'f __ _ OTTER TAI ARD OF COMMISSIONERS
Attest:
Lar~C~
CB/kd
OTC Board of Commissioners' Meeting
September 30, 2014
Attachment A, Page 1
WARRANTS APPROVED ON 9/30/2014 .
\·endor Name
ABBOTT/CYNDI
ABRA MN FERGCS FALLS
ADVA .. "ICED E."iGR.->. VING INC
ALPHA TR..\JNING & TACTICS LLC
AMUNDSON PETillSON INC
ANDERSON RPR/CHERJ
ANDERSON BROTHERS CONST CO OF BR
APEX
BACH1'L.\N PRINTING COMP . .\..'l1ES
B . .\..'1· KOE SYSTEMS INC
BEAR GR..\PHICS INC
BERVEN/mllGHT
BEYER BODY SHOP INC
BHH PARTNERS
BLUFFTON OJL COMPANY
BOB'S STANDARD Bl'LK SER\lCE
BO\\'MAN/MARSHA
BOYER/RODNEY
BR.->.NDBORG/HEA THER
BRL'\/N . .\N /K.E\ 1N
BROG . .\RD PLlJ1--!BING CO
BUY· !>!OR PARTS & SER\1CE LLC
BWSR
CARVER CO ATTORNEY'S OFFICE
CHESHJRE/RY . .\..N C
cmZENS ADVOCATE
CODE 4 SERVICES LLC
COLLEGE WAY At.rro INC
COMMISSIONER OF TR..\..'1SPORTATION
CONCEPT CATERING
COOPERS TECHNOLOGY GROL'P
DAKOTA CO SHERIFF
DEER CR.EEK OJL & TIRE
DOUBLE.->. CATERING
ECHO PRESS
EJ'S FLOOR COVERING
UDIEN/MICHELLE M
FERGUS FALLS DAILY JOURNAL
FERGUS TIRE CENTER
FR.>\ZEE ELECTRIC INC
FR.>\ZJER/BRENT
GABE/RICHARD B
Amount
86.73
2,666.74
3,720 00
104.90
24,000.00
192.50
164,790.70
11,468.10
327.62
1,125.00
1,426 79
119.99
315.00
1,12395
209.50
207.90
31.14
251.92
39.59
990.29
120.00
153.48
82.00
150.00
35 84
64.75
3,288.21
1,138.01
1,473.11
684.75
1,052.33
70,00
59.69
87.50
13500
9.929 00
112.00
3,671.47
40.00
5,860.00
231.20
248.00
OTC Board of Commissioners' Minutes
September 30, 2014
Attachment A, Page 2
Vendor Name
Glll/?,l.\RION
GODFATHERS E.'\"fERMINATING INC
GOERDT/STEPHEN
GRAFF /MYRON
GRAY MANUFACTURING CO INC
GRIFFIN/PA TRICK
HANCOCK CONCRETE PRODUCTS LLC
HANSEN/NICOLE
HARDIN COIJNIT SHERIFF
HARRIS/MICHAEL
HAUGE/MARK
HAWES SEPTIC T,>..,_'/K PUMPING
HOL\1/SHELDON
HOLO/SANDY
HOTSY EOv'IPME.'IT OF .MN
INDEPE.'1/DENT/THE
INNOVAm'E OffiCE SOLF!10NS
J.P. COOKE CO
JK SPORTS
JOHNSON/MICHAEL
KJ.D. LE.".SING INC
KELLY SERVICES INC
KIEFERS.COM
KINETIC LE.".SING INC
KNL1SON ELECTRIC REBUILDING
KOEHLER· TABERY/ANNA 1-l".RIE
L".KE COUNTRY GRAPHICS INC
L".KESHIRTS
L".NDWEHR CONSTRUCTION INC
LARRY OTT INC TRUCK SER\1CE
L".RSON/PAUL
LEE/THOMAS
LOCATORS & SCPPUES INC
M· R SIGN COMPANY INC.
1,l".NDERUD/Y10L.\ J
MANlJERUD/WAl.L.\CE C
~.\RCO INC
~.\RCO INC ST LOL1S
1,l.\RKS FLEET Sl!'PPLY INC
1-l.\RTINS PAINTING & MORE
MID· CENTRAL EOL'IPME.'ff INC
MINNESOTA SHERIFFS' ASSOCL.\TION
Amount
259.76
246.20
16.50
25.96
1,169.00
324.20
3,999.80
153.44
44.23
300.08
15.43
340.00
1,180.43
681.37
235.93
90.00
294.02
112.60
125.00
1,348.72
303.35
3.431.43
207.15
768.00
525.00
92.35
29.00
1.400.00
67.06947
2,880.00
399.16
459.60
268.88
268.24
87 67
72.45
53,667.02
891.80
1 97
6.657.50
1,527 93
110.00
Vendor Name
Jl.nNNESOTA VALLEY IRRIGATION
MINNKOTA E.',VIRO SERVICES INC
MN POLLUTION CONTROL AGENCY
M.'I v1EWERS ASSOCL>.TION
MUELLER/ANKE
NAPA FERGl'S FALLS
NELSON Al'TO CENTER
NORTHERN SAFEn· TECHNOLOGY INC
NORTHL-\ND BUSINESS SYSTEMS INC
NOVA FIRE PROTECTION
OFFICHIA.X INCORPORATED
OLSON/BERTON
ONE CALL LOCATORS LTD
OTTER aECTRIC LLC
OTTER TAIL CO TREASURER
OTTERTAIL BAUR\"
OTTERTAIL U>.RJNE
OTTERTAIL TRUCKING INC
PACE ANALYTICAL SERV1CES INC
PEBBLE L.\U AUTO REPAIR
PERHAM . .\REA EMS
PER.HA.\! PR.INTING & SUPPLY
P!CCHL.\RTh1/'.\L.\RCO
PINE PL.\ZA n· & A.PPLL>...>:/CE
PITNEY BOWES
PRAZAK/RAC Ha
PREMil:M WATERS INC
PRJCE FAMILY CONSTRUCTION
PROFESSIONAL L.\W ENFORCE.\!ENT Til-\
RDO TRUST #80-6130
REGENTS OF THE UNJVERsm· OF MN
RINGD . .\HL AMBUL>.NCE INC
ROGER Ht:TCHINS TREE SER\lCE
ROYAL TIRE INC
S.\\".JNC
SCHIER.ER/STEVE
SCHWARTZ/ROBERT E
SER\lCE FOOD SUPERVALU
SHER\\1N \11LLL>...'-IS
SHl:1.TZ/JERRY
SONSAll.-\iNICK
SOUTH Mill SERV1CE
OTC Board of Commissioners' Minutes
September 30, 2014
Attachment A, Page 3
Amount
731.99
24.00
1,12500
200.00
114 24
30.04
23,030.47
154 22
5.541.00
625.00
99.25
250 80
359 08
1,051.35
331. 76
137.60
22174
17,400.06
150.00
428.25
335.00
38.00
49,78
46.98
1,076,00
62.19
63.40
420.00
2,750.00
3,329.61
3,160.33
300.00
265.00
831.60
430.00
336.44
302.32
177.14
52.15
159.99
14.95
497.23
OTC Board of Commissioners' Minutes
September.30, 2014
Attachment A, Page 4
vendor Kame
SRF CONSULTING GROUP INC
STAPLES ADVANTAGE
STEAR.NS CO SHERJFF
STELI\/S INC
STEVE'S SANITATION INC
STEWART/JAMES
THOMSON REUTERS · '\HST
THRIFTY WHITE PHARMACY
THRIFTY WHITE PHARMACY
TIGGES/DENNIS
TIRES PLUS TOTAL CAR CARE
TITAN MACHINERY
TNT REPAIR INC
TRANOUIIIff BUil.DiNG SER\KES
TRITES/DA\1D
UGGERUD,i'\VARD
UHI.MA1'1"N/MONICA
l:11NE
VFW POST 612
VICTOR LUNDEEN COMP,\}f\'
WADENA CO SHER1FF
WASS/D . .\ VID F
\\'IDSETH SMITH NOLTING & ASSOC
WILKIN CO SHERIFF
WILSON/WARREN R
WOESSNER CONSTRUCTION INC
WORLD MEDIC..\!. GO\'ER.1\/MENT SOLUT11
Final Total:
.-\mounr
18,229.39
415.28
50.00
2,033.63
780.00
50.82
1,065.52
2,610.14
97.66
173.76
933.17
1,810.00
704.22
425.00
267.60
424.36
64.00
9583
240.00
731.94
225.00
610.76
168.75
1.705.00
226.16
50.00
298.77
495, 15606
OTC Board of Commissioners Minutes
September 30, 2014
Attachment B
TAX ABATEMENT AGREEMENT
BY AND AMONG
THE CITY OF PERHAM, MINNESOTA
AND
OTTER TAIL COUNTY, MINNESOTA
AND
PERHAM-DENT SCHOOL DISTRICT #549
AND
GROW PERHAM, LLC
TABLE OF CONTENTS
Page
ARTICLE I DEFINITIONS .......................................................................................................... 2
Section 1.1 Definitions ....................................................................................................... 2
ARTICLE II REPRESENTATIONS AND WARRANTIES ........................................................ 4
Section 2.1 Representations and Warranties of the City .................................................... 4
Section 2.2 Representations and Warranties of the County ............................................... 4
Section 2.3 Representations and Warranties of the School District .................................. 4
Section 2.4 Representations and Warranties of the Developer. ......................................... 4
ARTICLE III UNDERTAKINGS BY DEVELOPER, CITY, COUNTY, AND SCHOOL. ........ 7
Section 3.1 Construction of Project and Reimbursement of City, County, and
School Tax Abatement.. ....................................................................... 7
Section 3.2 Limitations on Undertakings of the City, County, and School. ...................... 7
Section 3.3 Operation and Maintenance of Project ........................................................... 7
Section 3.4 Damage and Destruction ................................................................................. 7
Section 3.5 Change in Use of Project ................................................................................ 8
Section 3.6 Prohibition Against Transfer of Project and Assignment of Agreement ........ 8
Section 3. 7 Real Property Taxes ........................................................................................ 8
Section 3.8 Duration of the City Abatement Program ....................................................... 8
Section 3.9 Duration of the County Abatement Program .................................................. 9
Section 3.10 Duration of the School Abatement Program ................................................. 9
Section 3 .11 Certificate of Completion ............................................................................. 9
ARTICLE IV EVENTS OF DEFAULT ...................................................................................... 10
Section 4.1 Events of Default Defined ............................................................................ 10
Section 4.2 Remedies on Default.. ................................................................................... 10
Section 4.3 No Remedy Exclusive ................................................................................... 10
Section 4.4 No Implied Waiver ....................................................................................... 10
Section 4.5 Agreement to Pay Attorney's Fees and Expenses ........................................ 11
Section 4.6 Release and Indemnification Covenants ....................................................... 11
ARTICLE V ADDITIONAL PROVISIONS .............................................................................. 12
Section 5.1 Conflicts of Interest.. ..................................................................................... 12
Section 5 .2 Titles of Articles and Sections ...................................................................... I 2
Section 5.3 Notices and Demands ................................................................................... 12
Section 5 .4 Counterparts .................................................................................................. 13
Section 5.5 Law Governing ............................................................................................. 13
Section 5.6 Duration ........................................................................................................ 13
Section 5.7 Provisions Surviving Rescission or Expiration ............................................. 13
EXHIBIT A -FORM OF CERTIFICATE OF COMPLETION ............................................................................ A-1
EXHIBIT B -TAX ABATEMENT PROJECTIONS .......................................................................................... B-1
EXHIBIT C -SITE IMPROVEMENTS .................... , ..................................................................................... C-1
EXHIBIT D -LEGAL DESCRIPTION OF THE PROPERTY .............................................................................. D-1
EXHIBIT E -INCOME COMPLIANCE CERTIFICATE .................................................................................... E-1
ii
TAX ABATEMENT AGREEMENT
THIS AGREEMENT, made on or as of the 1st day of October, 2014, by and among the CITY OF
PERHAM, MINNESOTA (the "City"), a political subdivision of the State of Minnesota, OTTER TAIL
COUNTY, MINNESOTA (the "County"), a political subdivision of the State of Minnesota, PERHAM-DENT
PUBLIC SCHOOL DISTRCT #549, (the "School"), a political subdivision of the State of Minnesota and
GROW PERHAM, LLC, a Minnesota limited liability corporation, or its successors or permitted assigns
(the "Developer").
WITNESSETH:
WHEREAS, the City, County, and the School have established their respective Tax Abatement
Programs, pursuant to Minnesota Statutes, Sections 469.1812 to 469.1815 (the "Tax Abatement Act"),
are authorized to grant an abatement of ad valorem property taxes imposed by the City, County, and
School if they find that the benefits to be derived from anticipated development exceed the estimated
cost of such benefits; and
WHEREAS, the City, County and the School respectively believe that the development and
construction of a certain Project (as defined herein) and the fulfillment of this Agreement are vital and
are in the best interests of the City, County, and the School, that the benefits to be derived from the
Project exceed the estimated cost thereof, that the Project will preserve and enhance the tax base, help
retain housing opportunities, and provide employment opportunities in the City, County and the School
District and are in accordance with the public purpose and provisions of the applicable state and local
laws and requirements under which the Project has been undertaken and is being assisted; and
WHEREAS, the parties agree that the City will pay to the Developer ninety percent {90%) of the City's
portion of the incremental increase in ad valorem property taxes generated by the construction of the
Project on the Tax Abatement Property over a period not to exceed nine (9) years and in an amount not
to exceed $40,776 (as shown in Exhibit B) subsequent to the Developer's demonstration in writing to the
reasonable satisfaction of the City that the Developer has expended $40,776 in Site Improvement costs;
and
WHEREAS, the parties agree that the County will pay to the Developer ninety percent (90%) of the
County's portion of the incremental increase in ad valorem property taxes generated by the
construction of the Project on the Tax Abatement Property over a period not to exceed nine (9) years
and in an amount not to exceed $30,939 (as shown in Exhibit B) subsequent to the Developer's
demonstration in writing to the reasonable satisfaction of the County that the Developer has expended
$30,939 in Site Improvement costs; and
WHEREAS, the parties agree that the School will pay to the Developer ninety percent (90%) of the
School's portion of the incremental increase in ad valorem property taxes generated by the construction
of the Project on the Tax Abatement Property over a period not to exceed nine (9) years and in an
amount not to exceed $10,564 (as shown in Exhibit B) subsequent to the Developer's demonstration in
1
writing to the reasonable satisfaction of the School that the Developer has expended $10,564 in Site
Improvement costs;
NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties
hereto, each of them does hereby covenant and agree with the other as follows:
ARTICLE I
DEFINITIONS
Section 1.1 Definitions. All capitalized terms used and not otherwise defined herein
shall have the following meanings unless a different meaning clearly appears from the context:
Agreement means this Agreement, as the same may be from time to time modified, amended or
supplemented;
Business Day means any day except a Saturday, Sunday or a legal holiday or a day on which banking
institutions in the County are authorized by law or executive order to close;
Certificate of Completion means the certificate of completion substantially in the form attached
hereto as Exhibit A;
City means the City of Perham, Minnesota;
City Tax Abatement means ninety percent (90%) of the City's portion of the incremental increase in
ad valorem property taxes generated by the construction of the Project on the Tax Abatement Property
over a period not to exceed nine (9) years and in an amount not to exceed $40,776 and abated in
accordance with the City Tax Abatement Program;
City Tax Abatement Program means the actions by the City pursuant to Minnesota Statutes, Section
469.1812 through 469.1815, as amended, and undertaken in support of the Project;
County means Otter Tail County, Minnesota;
County Tax Abatement means ninety percent (90%) of the County's portion of the incremental
increase in ad valorem property taxes generated by the construction of the Project on the Tax
Abatement Property over a period not to exceed nine (9) years and in an amount not to exceed $30,939
and abated in accordance with the County Tax Abatement Program;
County Tax Abatement Program means the actions by the County pursuant to Minnesota Statutes,
Section 469.1812 through 469.1815, as amended, and undertaken in support of the Project;
Developer means Grow Perham, LLC, a Minnesota limited liability corporation, its successors and
permitted assigns;
Event of Default means any of the events described in Section 4.1;
2
Project means the construction by the Developer of twenty-four (24) rental housing units to be
located in the City, County, and the School District;
School means Perham-Dent Public Schools District #549;
School Tax Abatement means ninety percent (90%) of the School's portion of the incremental
increase in ad valorem property taxes generated by the construction of the Project on the Tax
Abatement Property over a period not to exceed nine (9) years and in an amount not to exceed $10,564;
School Tax Abatement Program means the actions by the School pursuant to Minnesota Statutes,
Section 469.1812 through 469.1815, as amended, and undertaken in support of the Project;
Site Improvements means the site improvements identified on Exhibit C attached hereto to be
undertaken on the Tax Abatement Property.
State means the State of Minnesota;
Tax Abatement Act means Minnesota Statutes, Sections 469.1812 through 469.1815, as the same
may be amended from time to time;
Tax Abatement Property means all and any portion of the real property currently identified as Parcel
Identification No. 77000991018000 and located at 506 Pinewood Lane, Perham, Minnesota;
3
ARTICLE II
REPRESENT A TIO NS AND WARRANTIES
Section 2.1 Representations and Warranties of the City. The City makes the following
representations and warranties:
(I) The City is a municipal corporation and a political subdivision of the State and
has the power to enter into this Agreement and carry out its obligations hereunder.
(2) The City Tax Abatement Program was created, adopted and approved in
accordance with the terms of the Tax Abatement Act.
(3) The City has made the findings required by the Tax Abatement Act for the City
Tax Abatement Program.
Section 2.2 Representations and Warranties of the County. The County makes the
following representations and warranties:
(I) The County is a body politic and corporate of the State and has the power to enter
into this Agreement and carry out its obligations hereunder.
(2) The County Tax Abatement Program was created, adopted and approved m
accordance with the terms of the Tax Abatement Act.
(3) The County has made the findings required by the Tax Abatement Act for the
County Tax Abatement Program.
Section 2.3 Representations and Warranties of the School. The School makes the
following representations and warranties:
(I) The School is a body politic and corporate of the State and has the power to enter
into this Agreement and carry out its obligations hereunder.
(2) The School Tax Abatement Program was created, adopted and approved m
accordance with the terms of the Tax Abatement Act.
(3) The School has made the findings required by the Tax Abatement Act for the
County Tax Abatement Program.
Section 2.4 Representations and Warranties of the Developer. The Developer makes the
following representations and warranties:
(I) The Developer is a corporation validly existing under the laws of this State and
has the power to enter into this Agreement and to perform its obligations hereunder and is not in
violation of its articles, bylaws or any local, state or federal laws.
4
(2) The Developer will cause the Project to be constructed in accordance with the
terms of this Agreement and all local, state and federal laws and regulations (including, but not
limited to, environmental, zoning, energy conservation, building code and public health laws and
regulations).
(3) The Developer will obtain or cause to be obtained, in a timely manner, all
required permits, licenses and approvals, and will meet, in a timely manner, all requirements of
all applicable local, state, and federal laws and regulations which must be obtained or met before
the Project may be lawfully constructed.
(4) The construction of the Project in the City, County, and the School District would
not be undertaken by the Developer without the assistance and benefit to the Developer provided
for in this Agreement.
(5) Neither the execution and delivery of this Agreement, the consummation of the
transactions contemplated hereby, nor the fulfillment of or compliance with the terms and
conditions of this Agreement is prevented, limited by or conflicts with or results in a breach of:
the terms, conditions or provisions of any contractual restriction, evidence of indebtedness,
agreement or instrument of whatever nature to which the Developer is now a party or by which it
is bound, or constitutes a default under any of the foregoing.
(6) The Developer will cooperate fully with the City, County, and School with
respect to any litigation commenced with respect to the Project but only to the extent that the
City, County, and the School and the Developer are not adverse parties to the litigation.
(7) The Developer will cooperate fully with the -City in resolution of any traffic,
parking, trash removal or public safety problems which may arise in connection with the
construction and operation of the Project.
(8) The Developer agrees, represents, and warrants that the project and any further
additions, modifications or replacements shall at all times be connected to and utilize City owned
utilities including but not limited to water, sewer and natural gas. This agreement shall survive
the terms of this Agreement and shall be binding upon all assigns, heirs, successors who may
have or acquire an interest in the project or the development property.
(9)
follows:
The Developer agrees to comply with income requirements for this Project as
(a) At least 40% of the residential units in the Project must be occupied or
available for occupancy by persons whose incomes at the time of initial occupancy do not
exceed 80% of the greater of State or area median income, not adjusted by family size.
(b) The limits described in clause (a) must be satisfied for the duration of this
Agreement. Income for occupants described in clause (a) shall be adjusted pursuant to
Minnesota Housing Finance Agency Deferred Loan Program requirements based on the
area median incomes established by the United States Department of Housing and Urban
Development.
5
(c) On or before each January I, commencing at the time the Project becomes
occupied, the Developer or an agent of the Developer must deliver or cause to be
delivered to the City a Compliance Certificate (Exhibit E) executed by the Developer
covering the preceding 12 months together with written evidence satisfactory to the City
of compliance with the covenants of this Section. The City may review, upon request, all
documentation supporting the Developer submissions and statements.
6
ARTICLE III
UNDERTAKINGS BY DEVELOPER, CITY, COUNTY, AND SCHOOL
Section 3.1 Construction of Project and Reimbursement of City. County, and School Tax
Abatement.
(1) The Developer shall cause the Project to be completed by June 30, 2015.
(2) The costs of the acquisition and construction of the Project, including the Site
Improvements, shall be paid by the Developer or its designee.
(3) Pursuant to the City Abatement Program described in Section 3.9 hereof, upon
submission to the City of paid invoices and receipts for Site Improvement costs actually incurred
and paid by the Developer or its designee, the City shall reimburse the Developer for the Site
Improvement costs actually incurred and paid in an amount not to exceed $40,776.
(4) Pursuant to the County Abatement Program described in Section 3.10 hereof,
upon submission to the County of paid invoices and receipts for Site Improvement costs actually
incurred and paid by the Developer or its designee ( exclusive of costs reimbursed by the City
pursuant to Section 3.1 (3) above), the County shall reimburse the Developer for the Site
Improvement costs actually incurred and paid in an amount not to exceed $30,939.
(5) Pursuant to the School Abatement Program described in Section 3.11 hereof,
upon submission to the School of paid invoices and receipts for Site Improvement costs actually
incurred and paid by the Developer or its designee ( exclusive of costs reimbursed by the City and
County pursuant to Section 3.1(3) and Section 3.1(4) above), the School shall reimburse the
Developer for the Site Improvement costs actually incurred and paid in an amount not to exceed
$10,564.
Section 3.2 Limitations on Undertakings of the City County, and the School.
Notwithstanding the provisions of Section 3.1, neither the City, County, nor the School shall be
obligated to reimburse the Developer for Site Improvement costs in any amount, if the City or
County, or the School, at the time or times such payment is to be made, are entitled under
Section 4.2 to exercise any of the remedies set forth therein as a result of an Event of Default
which has not been cured.
Section 3.3 Operation and Maintenance of Project. The Developer further agrees that, at
all times prior to the termination of this Agreement, it will operate and maintain, preserve and
keep the Project or cause the Project to be maintained, preserved and kept with the appurtenances
and every part and parcel thereof, in good repair and condition.
Section 3.4 Damage and Destruction. In the event of damage or destruction of the
Project, the Developer shall repair or rebuild the Project.
7
Section 3.5 Change in Use of Project. The obligations of the City, County, and the
School pursuant to this Agreement shall be subject to the continued operation of the Project by
the Developer.
Section 3.6 Prohibition Against Transfer of Project and Assignment of Agreement. The
Developer represents and agrees that prior to the termination date of this Agreement the
Developer shall not transfer the Project or any part thereof or any interest therein, without the
prior \Vritten approval of the City, County, and the School. The City, County, and the School
shall be entitled to require as conditions to any such approval that:
(1) Any proposed transferee shall have the qualifications and financial responsibility,
in the reasonable judgment of the City, County, and the School, respectively, necessary and
adequate to fulfill the obligations undertaken in this Agreement by the Developer.
(2) Any proposed transferee, by instrument in writing satisfactory to the City,
County, and the School, shall, for itself and its successors and assigns, and expressly for the
benefit of the City, County, and the School, have expressly assumed all of the obligations of the
Developer under this Agreement and agreed to be subject to all the conditions and restrictions to
which the Developer is subject.
(3) There shall be submitted to the City, County, and the School for review and prior
written approval all instruments and other legal documents involved in effecting the transfer of
any interest in this Agreement or the Project.
Section 3.7 Real Property Taxes. Developer shall, so long as this Agreement remains in
effect, pay all real property taxes with respect to all parts of the Tax Abatement Property owned
by it which are payable pursuant to any statutory or contractual duty that shall accrue subsequent
to the date of its acquisition of title to the Tax Abatement Property ( or part thereof) and until title
to the property is vested in another person.
Section 3.8 Duration of the City Abatement Program. The City Tax Abatement Program
shall exist for a period of up to nine (9) years beginning with real estate taxes payable in 2017
and continuing through 2025. On or before February 1 and August 1 of each year commencing
August I, 2017, until the earlier of the date that the Developer shall have received (I) the date
that the Developer shall have received $40,776 or (2) February I, 2026, the City shall pay the
Developer the amount of the City Tax Abatement received by the City in the previous six month
period. The City may terminate the City Tax Abatement Program and this Agreement at an
earlier date if an Event of Default occurs.
8
Section 3.9 Duration of the County Abatement Program. The County Tax Abatement
Program shall exist for a period of up to nine (9) years beginning with real estate taxes payable in
2017 and continuing through 2025. On or before February I and August I of each year
commencing August I, 2017, until the earlier of (I) the date that the Developer shall have
received $30,939 or (2) February I, 2026, the County shall pay the Developer the amount of the
County Tax Abatement received by the County in the previous six month period. The County
may terminate. the County Tax Abatement Program and this Agreement at an earlier date if an
Event of Default occurs.
Section 3.10 Duration of the School Abatement Program. The School Tax Abatement
Program shall exist for a period of up to nine (9) years beginning with real estate taxes payable in
2017 and continuing through 2025. On or before February I and August I of each year
commencing August I, 2017, until the earlier of (I) the date that the Developer shall have
received $10,564 or (2) February I, 2026, the School shall pay the Developer the amount of the
County Tax Abatement received by the County in the previous six month period. The County
may terminate the County Tax Abatement Program and this Agreement at an earlier date if an
Event of Default occurs.
Section 3 .11 Certificate of Completion. The Developer shall notify the City when the
construction of the Project has been completed. If the City and County determine that the
Project has been constructed in substantial conformity with the construction plans for the Project
approved by the City and all uniformly applied local, state and federal laws and regulations
(including, but not limited to, environmental, zoning, energy conservation, building code and
public health laws and regulations) for purposes of issuing a certificate of occupancy, the City
shall furnish to the Developer a Certificate of Completion in the form attached hereto as Exhibit
A certifying the completion of the Project. Such Certificate of Completion shall be a conclusive
determination of satisfaction and termination of the agreements and covenants in this Agreement
with respect to the obligations of the Developer, and its successors and assigns, to construct the
Project; provided, however, that any such issuance of a Certificate of Completion pursuant to this
Section 3.11 shall constitute approval for the purposes of this Agreement only and shall not be
deemed to constitute approval or waiver by the City with respect to any building, zoning or other
ordinances or regulation of the City.
9
ARTICLE IV
EVENTS OF DEFAULT
Section 4.1 Events of Default Defined. The following shall be "Events of Default"
under this Agreement and the term "Event of Default" shall mean whenever it is used in this
Agreement any one or more of the following events:
(I) Failure by the Developer to timely pay any ad valorem real property taxes, special
assessments, utility charges or other governmental impositions with respect to the Project.
(2) Failure by the Developer to cause the construction of the Project to be completed
pursuant to the terms, conditions and limitations of this Agreement.
(3) Failure by the Developer to observe or perform any other covenant, condition,
obligation or agreement on its part to be observed or performed under this Agreement.
Section 4.2 Remedies on Default. Whenever any Event of Default referred to in
Section 4.1 occurs and is continuing, the City, County, or the School, as specified below, may
take any one or more of the following actions after the giving of thirty (30) days' written notice
to the Developer citing with specificity the item or items of default and notifying the Developer
that it has thirty (30) days within which to cure said Event of Default. If the Event of Default has
not been cured within said thirty (30) days:
(a) The City, County, or the School may suspend its performance under this
Agreement until it receives assurances from the Developer, deemed adequate by the City,
County, or the School, that the Developer will cure its default and continue its
performance under this Agreement.
(b) The City, County, or the School may cancel and rescind this Agreement.
(c) The City, County, or the School may take any action, including legal or
administrative action, in law or equity, which may appear necessary or desirable to
enforce performance and observance of any obligation, agreement, or covenant of the
Developer under this Agreement.
Section 4.3 No Remedy Exclusive. No remedy herein conferred upon or reserved to the
City, County, or the School is intended to be exclusive of any other available remedy or
remedies, but each and every such remedy shall be cumulative and shall be in addition to every
other remedy given under this Agreement or now or hereafter existing at law or in equity or by
statute. No delay or omission to exercise any right or power accruing upon any default shall
impair any such right or power or shall be construed to be a waiver thereof but any such right
and power may be exercised from time to time and as often as may be deemed expedient.
Section 4.4 No Implied Waiver. In the event any agreement contained in this Agreement
should be breached by any party and thereafter waived by another party, such waiver shall be
10
limited to the particular breach so waived and shall not be deemed to waive any other concurrent,
previous or subsequent breach hereunder.
Section 4.5 Agreement to Pay Attorney's Fees and Expenses. Whenever any Event of
Default occurs and the City, County, or the School shall employ attorneys or incur other
expenses for the collection of payments due or to become due or for the enforcement or
performance or observance of any obligation or agreement on the part of the Developer herein
contained, the Developer agrees that they shall, on demand therefor, pay to the City, County, or
the School the reasonable fees of such attorneys and such other expenses so incurred by the City,
County, or the School.
Section 4.6 Release and Indemnification Covenants.
(I) The Developer releases from and covenants and agrees that the City, County, and
the School and their respective governing body members, officers, agents, servants and
employees shall not be liable for and agrees to indemnify and hold harmless the City, County,
and the School and their respective governing body members, officers, agents, servants, and
employees against any loss or damage to property or any injury to or death of any person
occurring at or about or resulting from any defect in the Project.
(2) Except for any willful misrepresentation or any willful or wanton misconduct of
the following named parties, the Developer agrees to protect and defend the City, County, and
the School and their respective governing body members, officers, agents, servants and
employees, now or forever, and further agrees to hold the aforesaid harmless from any claim,
demand, action or other proceeding whatsoever by any person or entity whatsoever arising or
purportedly arising from a breach of the obligations of the Developer under this Agreement, or
the transactions contemplated hereby or the acquisition, construction, installation, ownership,
maintenance and operation of the Project.
(3) Neither the City, County, or the School, including their governing body members,
officers, agents, servants and employees, shall be liable for any damages or injury to the persons
or property of the Developer or its officers, agents, servants or employees or any other person
who may be about the Project due to any act of negligence of any person.
(4) All covenants, stipulations, promises, agreements and obligations of the City,
County, and the School contained herein shall be deemed to be the covenants, stipulations,
promises, agreements and obligations of the City, County, and the School, respectively, and not
of any governing body member, officer, agent, servant or employee of the City, County, or the
School in the individual capacity thereof.
11
ARTICLE V
ADDITIONAL PROVISIONS
Section 5.1 Conflicts of Interest. No member of the governing body or other official of
the City, County, or the School shall participate in any decision relating to this Agreement which
affects his or her personal interests or the interests of any corporation, partnership or association
in which he or she is directly or indirectly interested. No member, official or employee of the
City, County, or the School shall be personally liable to the City, County, or the School in the
event of any default or breach by the Developer or successor or on any obligations under the
terms of this Agreement.
Section 5.2 Titles of Articles and Sections. Any titles of the several parts, articles and
sections of this Agreement are inserted for convenience of reference only and shall be
disregarded in construing or interpreting any of its provisions.
Section 5.3 Notices and Demands. Except as otherwise expressly provided in this
Agreement, a notice, demand or other communication under this Agreement by any party to any
other shall be sufficiently given or delivered if it is dispatched by registered or certified mail,
postage prepaid, return receipt requested, or delivered personally, and
(1) in the case of the Developer, is addressed to or delivered personally to:
Grow Perham, LLC
PO Box 24
Perham, MN 56573
(2) in the case of the City, is addressed to or delivered personally to the City at:
City of Perham, Minnesota
City Hall
125 2°' Avenue NE, PO Box 130
Perham, MN 56573
Attn: City Manager
(3) in the case of the County, is addressed to or delivered personally to the County at:
Government Services Center
Otter Tail County
12
520 W Fir Avenue
Fergus Falls, MN 56537
Attn: County Administrator
( 4) in the case of the School, is addressed to or delivered personally to the County at:
District Administration
Perham-Dent Public Schools
200 5th Street SE
Perham, MN 56537
Attn: Superintendent
or at such other address with respect to any such party as that party may, from time to time,
designate in writing and forward to the other, as provided in this Section.
Section 5.4 Counterparts. This Agreement may be executed m any number of
counterparts, each of which shall constitute one and the same instrument.
Section 5 .5 Law Governing. This Agreement will be governed and construed m
accordance with the laws of the State of Minnesota.
Section 5.6 Duration. This Agreement shall remain in effect, with respect to the City,
through the earlier of the date on which the Developer has received the City Tax Abatement or
February 1, 2026, and, with respect to the County, through the earlier of the date on which the
Developer has received the County Tax Abatement or February 1, 2026, and, with respect to the
School, through the earlier of the date on which the Developer has received the School Tax
Abatement or February 1, 2026, unless earlier terminated or rescinded in accordance with its
terms.
Section 5.7 Provisions Surviving Rescission or Expiration. Sections 4.5 and 4.6 shall
survive any rescission, termination or expiration of this Agreement with respect to or arising out
of any event, occurrence or circumstance existing prior to the date thereof.
13
IN WITNESS WHEREOF, the City has caused this Agreement to be duly executed in its name and on
its behalf, the County has caused this Agreement to be duly executed in its name and on its behalf, the
School has caused this Agreement to be duly executed in its name and on its behalf, and the Developer
has caused this Agreement to be duly executed in its name and on its behalf, on or as of the date first
above written.
GROW PERHAM, LLC.
By ____________ _
Its President
14
This is a signature page to the Tax Abatement Agreement by and among the City of Perham,
Minnesota, Otter Tail County, Minnesota, Perham-Dent Public Schools, and Grow Perham,
LLC.
15
CITY OF PERHAM, MINNESOTA
By ___________ _
Its Mayor
By ___________ _
Its City Clerk
16
This is a signature page to the Tax Abatement Agreement by and among the City of Perham,
Minnesota, Otter Tail County, Minnesota, Perham-Dent Public Schools, and Grow Perham,
LLC.
17
OTTER TAIL COUNTY, MINNESOTA
By ____________ _
Its Chairperson
By ____________ _
Its County Administrator
18
This is a signature page to the Tax Abatement Agreement by and among the City of Perham,
Minnesota, Otter Tail County, Minnesota, Perham-Dent Public Schools, and Grow Perham,
LLC.
19
PERHAM-DENT PUBLIC SCHOOLS, MINNESOTA
By ___________ _
Its Chairperson
By ___________ _
Its Superintendent
20
This is a signature page to the Tax Abatement Agreement by and among the City of Perham,
Minnesota, Otter Tail County, Minnesota, Perham-Dent Public Schools, and Grow Perham,
LLC.
21
EXHIBIT A
FORM OF CERTIFICATE OF COMPLETION
CERTIFICATE OF COMPLETION
WHEREAS, Grow Perham, LLC., a limited liability corporation of the State of
Minnesota ("the Owner"), is the owner of the property in the County of Otter Tail and State of
Minnesota described on Exhibit D hereto and made a part hereof (the "Development Property");
and
WHEREAS, the Development Property is subject to the provisions of a certain Tax
Abatement Agreement, dated as of October 1, 2014 (the "Agreement"), between the Owner and
the City of Perham, Minnesota (the "City"), Otter Tail County, Minnesota (the "County"), and
Perham-Dent Public Schools, Minnesota (the "School"); and
WHEREAS, the Owner has fully and duly performed all of the covenants and conditions
of Owner under the Agreement with respect to the construction of the Project (as defined in the
Agreement) on the Development Property.
NOW, THEREFORE, it is hereby certified that all requirements of the Owner under the
Agreement with respect to the construction of the Project on the Development Property have
been completed, and this instrument is to be conclusive evidence of the satisfactory termination
of the covenants and conditions of the Agreement as they relate to the construction of the Project
on the Development Property.
Dated this __ day of _____ , 20_
A-1
CITY OF PERHAM, MINNESOTA
By ________ _
Mayor
And ________ _
City Manager
This is the City Signature Page to a Certificate of Completion.
2
EXHIBIT B
TAX ABATEMENT PROJECTIONS
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'"' ,ua<>,. w.,,t,"1 Val,_ lilMul Y.UU•
Pff I"-FU\lnk P•r la. FtJVnit
7-12 \00
ublOL»l'IO n •
ubtola -~
Note:
Workforce Apartments Tax Abatement Project
City or Perham, Mmnnot~
!,Aug-I~ '-"•<>·•~ ~~· 1 :a:~
~,,;,c,14
~., J~H
:;..,.,.,.r,x,>aL,x:•IT>>'l•'" c..,.....c.,r~, R.r,. c=-C"'-""'i 1,.,,..,,
,..,,. ... ~:)-.e,,:,.,,, ~ ... T:,_,i:t~,-C...,-.,.;,t0,_T.,R"1a
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PROf'fJ;tTY TIU ClAIIU ilHCl ClAU RATU
E<.....,, Cln• i:t,i, i£>.-mp11
eem,,,,.,., •. 1fl<la11r•• ~_,,,... c,.. .. R.,• (C,1 f••' 1 r,,.. ,,!o.ooo
0,.,.,, $1!0,0W
,.,.,,.,......., • ..; ...... 1 c, ... R31• iC!IJ
RoMUI "'°"""II Cl•• l'b ... fRlon'~>
A"'='<d~• R""u, Hl:>.i"'i C!,u "'"'* (Alf R,o"'"!\ f!on-><....,..tlt.d R•-;>1 ,t.°"'h R<tt.,
Hom<om.oll .. ,tj-lC,.1n~to1MMow lln\ F,,., $5llllCOO o-.... ~000
11.Qn<u""•~lt.j:,t>.l<cm<r,,.,..
hf"tto•~ I~• Ynr f'T<>p.,,w
To>l~I OfY>luoUud °"9ilul 0,~ T»-
1,1;•,i,.O'I V'IM ''" llli.tnol llll•r\•t YW• Na,.., v.i.. ci.. ..
0 ~~~I~.~
Workforce Apartments Tax Abatement f)roject
C:ity ol Perh.-im, Mtnnesou.
So FtJUnlt•
.... ·-1◄2.100 ,,
"
Atf Enhl..,• P=c,p.11-
,_,.,
'" Clns
<l~_s,_,;
Proia<,I Tnca.,aoltv
Q.;:7G
"' '
P ... een~g• __ ,
101~
"'"
1. l,hrhl. Y•kl••..,. b•ud upon nh~l•~ fr""" oount)" ••n•""' on h,pi...nb4'r 4 Xlt~
.......
'"
-~· o;.l>M~"''
THC y
1,11.•#id* ~-, Tnn
1 f ~•n •nd •b>t..,,..nt ••II ~~ry '°""'"'"nlfy t,...., ~H 10 ,,...,., <H'fH'n<lmg Up<><\ v-•• ra1.-., .. 1~ I.aw ~nd oth•r 1~10<• ""idl"'""""·"---ctfll
, i" WHAT IS EJI.ClUH[D FROM AIIATEMlNl?J:1~ )'
~"' les.51-wldo,T.uo
ln,,; fi&c.al Dt&p. Adj
l•u lbtli-.1 v,1.,. f; ....
LH~ Sm.ft h•m11 J"rl'l-dlct>on la ... ~
l•n 8.n• Vff.,. T .. tt ,l,nn<al Gron 1,1;,uimu" r_.. Al>~l..,....nl
B-1
T.uH f'tr
Sq FI/Um1
!1.1
11! t~ll'lri l">; ::t14
r,4 ,~~c"' "'•• :014
•117',t"II, .. ~1::t-00
1' ~¼C~ ,,..._ 2~,~
u,o~esi. "'•f:014 ::: H)oa, F•• ;c,a
Q';e-$():~ "••:C'4
c~.. _,
-· r.-c ....... R!Gn °' T'"" C -~~-
P•"1.,,t,11f
CompletK
''" :cc,
Fonl fal
fuHT.a.<K
Pr•bi.
wi;
9 !7B
9,276
9,Z76
9,27£
9,276
9 276
9 276
9 21f>
9,276
Orig,r,,.I , ..
c .... 11ctt¥
f,.Clll
D•t~fHJH
lo,;'""ruentei
Captured , ..
C,'lfl~IN
l:1,7/i;\
~ :,~
g_::ie
9,27€
~.216
9.2?'>
9 276
9 275
'3,276
G ~-~,~~,~.~
Workforce Apartments Tax Abatement Project
Cliy of Peehom, Mhmesoto
comblnad
Coty, County,
l SeMol
Tu Ra1e
"°"
'"''
110%
110%
1\0%
""' 110~
110,
""'
All E1>mlo P.art,clpMe
Muimum
,t,nnual
GrouT,u
Abatemeut
10.1~
10 ,se
10.,se
10,158
10,1$6
10,1$6
Saml Annual
Gros, Tl!~
AJ>111-n1
2
<Kl!, %'< t>O';
'"' Co11nty Scllo,;,I
Aboten>ent 4bolet'M'1'11 Ablll<!ffltl\l Semi Aamu.t!
wl T,u Rat,i, WITH R•la WIT,u Rate tlel TH
;4_;~r•,,, ~1.H!>•r¼ 14.0\4'1'0 Abatement
2.~s 1,119 sa1 4.~11
2.:.-6~ 1,119 W7 4 511
2.:,,S5 1 /19 51H 4 511
2.265 1 /19 ~7 ~ 571
:U65 1Jl9 Sill 4 571
2.::$~ 1.719 587 4,571
~-:!&~ 1Jl9 581 4,511
l,:,,SS IJ19 $87 4,571
z.:,,5 \Jl', 567 ,(571
:,;:,;e.:, \Jl', 5B7 491
-:.::&s t,71', S!H 4 571
::_::e.s 1.71<; 531 .i. s11
Z~5 1JH, 531 4571 :..zvs 1.71<; 537 457\ :.:vs 1.11<; sa, .i. s11
::.~S UHi 531 457\ ::,z.vs 1,719 587 4.571
:,,;vs 1710 SS7 4571
St,,n11.J•'5nu,1 P~um
Value
... 10,
t\ 092
11 ~77
15 157
Ill 43'3
J3017
:!f; '!,OJ
2",119-1
)~ 19';;
.,€,401
35' 53'1
42 sn
45~);6
41!◄:!0 Sl):>S
'51 sss
56,611
S9,1%
PERIOD
ftlDING , .. v, •. Year
os ::on
1 2017
1 S 201$
2018
2 S 201\:1
3 101';
'.'.5 ZO~'O
4 :ow
4 5 :-0::1
~ :'011
5 5 =:o::2
6 :t:122
65 :!021
:!O:)
:102◄
2'02◄ ,c:::s
2'l:S
Payment
OMe o:M'.1111e
0610ti16
Q"'J.)1117
061(.'1:ll
01/011!6
Q&C,111~
0:!/01119
oa,,0111:,
0.21{111:/D
OMl1,':/0
~lf)1:;1
()6101[.;1 o~ow: 0Ml1r:::
(W01Cl
O&'lll/2)
0211'.llr.4
06.'Cllr.4
O:it:il/ZS
C181C!r.S
o.:i-o11::,:;
Landscaping, including irrigation
Foundations and Footings
Grading/earthwork
Engineering
Survey
Environmental Testing
Soil Borings
Site Preparation
On Site Utilities
Storm Water/Ponding
Outdoor Lighting
EXHIBIT C
SITE IMPROVEMENTS
Parking, Driveway and Sidewalk Improvements
B-1
EXHIBIT D
LEGAL DESCRIPTION OF THE PROPERTY
CERTIFICATE OF SURVEY
LOT 1. BLOCK 3. COUNTRY PINE ESTATES SECOND ADOITION
\
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"»HtlJLl,H;:)l\j<,;f ll"lil U['~lNOSr11;rn.;1~
i.:cwi.1nYPNr 1.61 ... lrf• ~•XNJAt';JlllF.l'l
ll::GEN~O~-cc--·--·-····---
• 1'(~]'4tl~ .....
('} :Y!Mfl""~•-.:n1
""'V'll'~"•N 1ti;;..,::11,,""1on1«11,,-,;.·•
CERTIFICATION
I l'e,llby ~(lltity lhol lhit IUl\'O)'. pl,1f\ or revr,rt -..;:it P'~ t,,.
rn~~rt/lllJOl'I and lh.\11 am dly Lkmn,ud or un WW$ ol the at.,ie ot Minm•IO!a
.. . .... ~P~-r..
!11 . PLS. !,Ql)l Oat" j/0,f"
~compass
-consultants inc. Perham, MN 218·346-3600
Tru?.tCompass,com
Nag•,47•40 .. E
160,97
PARCEL A
fiB,816 5F,
"' ' w ~~ ~· .,_
t ,1-•b 0 w POil ~
fh.,t µ,in of Loi 1, t't!od !, Country l'me ht.ates S.,,:Olld
l\ddU1un, ~notdlflC to !ht rcco«!ed pl.II the,~>I, Otte<' T,;,~
tovm:v, MmnnotJ, lf'"'\ll no,th1rrlv o1 th<' ½111.M'll"il,
UbrnlNtd ll>1t:
C.ommtntlnil M the rortl'iwr,\t ~01~1 of 1..>1,t Block j; thence
Nort!\ ,<i ;koe:r('fll 4 7 ri,1rni:t@S 40 1rm,10l EJ~I ~long t~r
'!Qtlht-lfy hne ol uld Skid, l, ~4h,t.m~e of l8().971cet 10
th~: t1i11hi1l1 timi of "1d S!od I; th,p-n(,e '.>cuth OOdeere~ 14
m.J\IJtt:!!1 16 wtomh W-ut JJ-01111 >ailJ t>U!trtv line, 11 diil-i\nce
of llf>.41 r,1n 10 1~ point of b<g:,n,im.c of ttw lifil:' ic bl'c
duttib-i.,d; ttletl(C South as dr.grer\ 04 mln!.11~ 44 ~&undi
West, ,1d~tanc1,1 of 246.7] fret to the ,nuthwf'\tm1y 11"1" of
HIid SJ~~ 3, ar>CI iaid !tfl(! !lwfl' term111,ting .
.. PRC>~OSEO DESCRIPTION-PARC.EL B __
1hi$t pm uf L.ut I, 81ock 3, (,o~rv f>l,w-rit-ne1 Second
A.ddltJo.'. Jttorl;lmg to tht rl'cordN.J pfot lhtuof, nu,, T;,11
County, MlnnttHlt;J, ''""G fl)l,111'1,Hty of 1ne fo!lowif\j!.
dl'"l(nboo h~:
(otnrTlt'1CmR Jf the no<:hw1cu lOHlt>r ,:if i/lld f1I01.t ¼: ttif'fl(J:
Nortll 111 dea:1«'\ 47 mmute, 40 ~ .. ,olld!-f,"l\t'3!0f'l{I; the-
r.onhttfv Pnc cl s.&ld IDnd J. a d!,1.1,ull! of ll!0.911«-t to U'lf,
,ra\te•I~ II~ ot tolld tllo.:k 3; ttwnce ~<A.EthOQ d,egre~s I"
rn,nute~ 16 st-ra.ndi W(flt alo"ff ;.aid eaner\, hne. 11 dr.1-t.fl',n•
of'.2&b.41 f1m1 !O the 11oi111 ol ti.tlm,1"11: of th,1 llt>r-iol>E'
dll:'\uibe-d: thellU! South 18 de111er!i 04 minu1tl 44 \ .. ,c,,:,,.l\
Wen .,,c;~!;tri'-" of 14f..?) fu1rt to Hit• "10uthw~tt11t, lml.' o!
U•l!I IJ/tl(~ J. l'fnd 1-aid /Irie th.,,c tennin.irlt1£
2
••',.(,;.1:.r· mw,•tc-11.,
<",'lCW 1•r111,,¼,
~r<OW PE~~AM 5~FICl5NCY Ar'A~iMENi&
f~~~~i, ~!~~~SOY lil ... .,. ·~
....... ____ ___
-~-...
·n,~.,-=-lll!!IIJ,lll'l&U/11\,
~-----~
ti:li,9•Whi&W .....
"""'--~ ........ ·-·· ......... rJl&llCl/lfNI Mt_., 111._. _______ -..n
1-IIMMlllllftl#tifJl191Mllt
:r.•Uill--.U.U■-111111' M■ ...........
'11fpnc4
-•--111• .. •-.lfl#I ..... ,,.,.. ...............
............ IAIIJ,j
"111/IIINU:I aa•• -':tas::--••11•• . ____ ,111
talllil' ...... 'Hi&i ..... ' IL1ll1r' ··-
11111-
----~-iii ---iii.. ,,,.,n•
-:11!1'~ .• ..... , .. -....
Er r
lft!Uia-•l•il
3
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11111 I
l i; F. \ I; ,.L G ;!. ~,,.!
EXHIBIT E
COMPLIANCE CERTIFICATE
The undersigned ________________________ ~ does hereby certify
that as of the date of this Certificate not less than 40% of the residential units in the Grow Perham, LLC Project
located at 506 Pinewood Lane in Perham, Minnesota (the "Project") are occupied by individuals whose income
is 80% or less of the State or area median income, not adjusted by family size, as defined by Minnesota
Housing Finance Agency based on the area median incomes established by the United States Department of
Housing and Urban Development (HUD) at the time of occupancy.
Dated this __ day of _________ ~ 20 __ .
[Attach documentation required by Section 2.4 subdivision 9 (c)]
GROW PERHAM, LLC.
By:
Its
4
MN Housing
Deferred loan Pro gr am!>
Income and Rent Umih
B: Income at or below 80% of SMI not adjusted for household size
Household Size
All
Effective Date of Limits: 12/18/2013
Income
$58,000
C. Income at or below 80% of the greater of SMI or AMI, not adjusted for household size
Mpls/St. Paul MSA {Anoka, Carver, Chisago, Dakota, Hennepin, 1s.arit1, Ramsey, Scott, Sherburne, Washington, Wright Counties)
Goodhue County
Mcleod County
Rice County
Household Size tncome
All $66,400
How;ehold Size
All
Household Size
All
Household Size
All
Income
$58,100
Income
$58,500
Income
$59,100
Rochester MSA (Olmsted & Dodge Counties)
Stei!le County
Remainder of State
Household Size
All
Household Size
All
Household Size
All
5
Income
$69,100
Income
$59,100
Income
$58,000